Project on OSCB1

7/27/2019 Project on OSCB1

http://slidepdf.com/reader/full/project-on-oscb1 1/102

CONTENTS:

1. Acknowledgement

2. Preface

3. Research ethodolog!

". O#$ect%&e

'. (%nanc%al Performance )%ghl%ghts

'. Organ%sat%on Prof%le

*. a%n +od!

,. -ata Anal!s%s

. Concl/s%on

0. S/ggest%on

1. +%#l%ograh!

11. Aend%

1



PREFACE

Introduction

Or%ssa State Co4Oerat%&e +ank5 a to order #ank %n Or%ssa has headoff%ce at +h/#aneswar 6t has some #ranches at C/ttack5 Paradee5Sam#al/r Or%ssa state co4oerat%&e #ank ltd was reg%stered /nder the+%har and Or%ssa co4oerat%&e soc%et! act 103'.

(%n%al statements wh%ch %ncl/de #alance sheet5 rof%t 7 loss statement5cash flow and f/nds flow statement 8enerall! statements are two t!es5the

9% Pos%t%on statement 7

9%% 6ncome Statement

+alance sheet %s known as os%t %on statement 5 wh%ch shows thef%nanc%al os%t%on of the concern5 on a art%c/lar date.

And rof %t 7 loss statement5 cash flow and f/nds flow %s know as %ncomestatement5 wh%ch shows the %ncome 7 eend%t/re of the concern for af%nanc%al !ear.

Proerl! anal!sed and %nterreted can ro&%de &al/a#le %ns%ght &%ew off %rs erformance and os%t %on. Anal!s%s of f %nanc%al statement %s of

%nterest to lenders5 6n&estors sec/r%t! anal!s%s5 mmanagers and others.(%nanc%al statement anal!s%s ma! #e done5 to know the %nternal strengthand weakness of the f%rm.

Motive (Aim of study)

• To know c/rrent f%nanc%al strength of the #ank 9OSC+

• To know the rof%ta#%l%t! of the #ank . 9OSC+

• To st/d! the change %n the os% t%on of work %ng ca% ta l %ncomar%son to last !ears.

• To st/d! the %tems of +alance sheet and / statement 7 cash flowand f/nds flow statements.

• To know the f%nanc%al os%t%on o f the OSC+.

• To know the so/rces of f%nance to the OSC+.

2



RESEARC) ET)O-O;O8<RESEARC) ET)O-O;O8<

6n common sense = Research> means to a search for knowledge. As well as5 %t %s

an art of sc%ent%f%c %n&est%gat%on. 6t %s a s!stemat%c method of f%nd%ng sol/t%on to a

ro#lem %s research.

Research methodolog! %s wa! to s!stemat%call! sol&e the research ro#lem.

And there are &ar%o/s stes that are to #e followed thro/gh #! a researcher %n

do%ng a research work. There are d%fferent stes /n&al/ed %n th%s research work.

The! are?

(1) Tentat%&e select%on of the To%c.(2) Prearat%on of frame of reference

(3) Prearat%on of S!nos%s.

(4) Etens%&e st/d! of Connected #%f/rcate

(5) -eterm%nat%on of date.

(6) -ef%n%ng stat%call! /n%ts.

() (%%ng the standard of acc/rac!.

(!) -es%gn%ng the Pro$ect.

(") -ata Collect%on.

(1#) -ata Anal!s%s.

(11) Class%f%cat%on and Ta#/lat%on of -ata.

(12) S/%ta#le for anal!s%s

(13) -ate eec/t%on.

(14) Arr%&%ng at concl/s%on or draw%ng %nference.

(15) Prearat%on of Reort.

O+@ECT6E :4 (%nanc%al Statements also %ncl/des a statement of changes %n

f%nanc%al os%t%on. +/t %ts ma%n o#$ect%&e of anal!s%s of f%nanc%al statements %s to

know l%B/%d%t! os%t%on or rof%ta#%l%t! of coman!. +es%des %t ser&es a n/m#er of

d%fferent o#$ect%&es.

3



1. -ec%d%ng the manager%al eff%c%enc!.

2. -ec%d%ng the earn%ng caac%t! or rof%ta#%l%t!.

3. -ec%d%ng the short and long4term sol&enc! of the concern.

". ak%ng forecasts and rear%ng #/dgets.

$%&RCE$ %F 'AA

The data for the resent st/d! were allocated ma%nl! from ann/al Reorts and

other /#l%cat%ons of coman! concerned wh%ch known from the%r resect%&e

off%ces generall! So/rces of data can #e reta%ned from.

Pr%mar! ethods Secondar! ethodsPersonal 6nter&%ew ;%#rar!

/est%onna%res 6nternal RecordsTelehone 6nter&%ew News PaersPersonal O#ser&at%on Ann/al reorts and other related

P/#l%cat%on

TOO;S )OR6DON O( ST-<:

There are &ar%o/s tools a&a%la#le to the f%nanc%al anal!s%s

The! are ?

1. Trend Anal!s%s.2. Rat%o Anal!s%s3. +reak e&en Anal!s%s". Comarat%&e Statements'. Common s%Fe Statements*. Cash (low Anal!s%s,. (/nds (low Anal!s%s. Statements of change %n work%ng Ca%tal

0. A&erage Anal!s%s

4



(6NANC6A; PER(ORANCE)68)T;68)TS

E&er! #/s%ness organ%Fat%on e%sts on f%nanc%al %nformat%on %s reB/%red forf%nanc%al enn! and -el/s%on mak%ng5 6n #/s%ness Organ%Fat%on acco/nt%ng

s!stem %s a ma%n so/rces of f%nanc%al %nformat%on. Acco/nt%ng s!stem %s the

rocess of %dent%f!%ng5 meas/r%ng and comm/n%cat%ng econom%c %nformat%on to

erm%t %nformed $/dgments and dec%s%ons #! the /sed of %nformat%on. 6n o/r 6nd%a

(%nanc%al statements %ncl/des. 91 Prof%t and less Acco/nt and +alance sheet.

These are the mean%ng of comm/n%cat%ng acco/nt%ng %nformat%on.

Acco/nt #!G also helf/l for %n&estors otent%al %n&estors lenders5 s/l%ers and

trades cred%tors. Taat%on a/thor%t%es stock echange emlo!ees and Trades

/n%ons5 8o&ernments5 and /#l%c etc. 6n acco/nt%ng s!stem rof%t and loss

Acco/nt statement ro&%des5 a conc%se reort of the f%rm re&en/es and eenses

d/r%ng a er%od of t%me and meas/res %ts rof%ta#%l%t!. And #alance sheet ro&%des

a conc%se s/mmar! of the #/s%ness reso/rces and o#l%gat%on sand meas/rers

the #/s%ness l%B/%d%t! and sol&enc!.

5



FI*A*CIA+ ,I-,+I-,$ %F%RI$$A $AE C%%PERAI.E /A*0 +'

Comarat%&e Cred%t -el%&er! Pos%t%on %n Or%ssa Role of Cooerat%&e and

other +anks

arket Share of Cooerat%&e G Commerc%al +anks %n -eos%ts %n Or%ssa

State:

9Rs. 6n Crores<ear Commerc%al

+anksCoo.+anks

Total-eos%ts

ShareofCoo.+anks

Share ofCommerc%al+anks

1002403 3*0.2 1,.2 3,*." 'H 0'H100340" "3,3. 22. "*1. 'H 0'H100"40' '2,*."* 202., ''*.'3 'H 0'H100'40* *10.*0 3,.0 *'*., *H 0"H100*40, ,"12.*2 '.2" ,012.* *H 0"H100,40 0,0.' *1,.0' 0'0,."' *H 0"H100400 031".' ,1.*3 12'." ,H 03H

100042 12*'3.12 0"'.' 13'0.1, ,H 03H2421 1"1.* 11.0' 1'000.*1 ,H 03H21422 1*0.1 1"23.,3 2112.01 ,H 03H22423 10.2 132'., 212.1 ,H 0"H2342" 10*,0.1 1"3., 2'2.'1 H 0'H2"42' 1,,0.3 1',3.,3 21012.01 H 0'H

arket Share of Cooerat%&e +ank %n Cro ;oan:

<ear Target as er Ach%e&ements Share of Coo.7 Commerc %a l+anks %n Cred%t-el%&er!

Coo. Comm. Total Coo. Comm. Total Coo. Comm.

02403 ,3.'0 '*.'. 13.0 "*.1 3*.00 3. ''H "'H

0340" ,"."1 *.1 13'.22 ,3.2 ",., 120 *1H 30H

0"40' 1.0" *'.,0 1*.,3 1.,2 *2.12 1*2." *2H 3H

0'40* 11*.3, ., 10*."" 1'*'.* 0'.*2 2'1.* *2H 3H

0*40, 1',.1" 1*.*0 2*3.3 1*3.20 112.3 2,'.'0 '0H "1H

6



0,40 10.," 11.3, 30.11 21.*, 0".3 20'., *H 32H

0400 2*'.2* 132.1' 10,."1 320.2 133.0 "*3. ,1H 20H

100042

3,3.0* 1'. '2".1 "2*.21 1*.'" '0".,' ,2H 2H

241

"02., 1*,.,, *.'' "3.22 10.02 *2.1" ,H 3H

142 ''0.2' 1,.10 ,"."" '3,.23 2"."2 ,,.1' *0H 31H

2243

3,3.* 1'1. '2".1 "2*.21 1*.'" '0".,' ,2H 20H

234"

''2.* 1,.,, *2.'2 "'.22 100.02 *.1" ,H 32H

2"4'

*'0."' 10,.10 ,"2."" '',.'3 2"."2 ,0.1' **H 33H

C- Rat%o of Commerc%al +anks and Cooerat%&e +anks:

<ear Commerc%al #anks Cooerat%&e +anks

1002403 *3.0' 13'.3*

100340" ''.,0 12.0*

100"40' '3.,1 131.3'

100'40* '3.', 121."'100*40, ".2" 11.1*

100,40 "3.,3 11*.1"

100400 "'.* 123.'"

100042 "2.02 122.0

2421 "'., 121.0

21422 "*.' 1'.

22423 "".02 12.0

2342" "., 12'.0

2"42' "0.' 11'.

7



$ources nd &ses of Funds

(/nds comr%s%ng / ca%tal and Reser&es5 -eos%ts and +orrow%ng are

the ma%n reso/rces of the +ank. A ma$or ch/nk of these reso/rces are

delo!ed %n loans and ad&ances to the aff %l %ated CC+s5 mem#er

soc%et%es and %nd%&%d/als for d%fferent /roses /nder farm and non4farm

sectors. The stat/tor! %n&estment reB/%rements /nder +r Act and R+6

Act are met #! %n&estment %n Central GState go&ernment Sec/r% t! and

other aro&ed Tr/stee sec/r%t%es and ma%nta%n%ng %n c/rrent acco/nt

w%th R+6 resect%&el!. Seasonal %ngest%#le s/rl/ses are delo!ed %n

call and a#ort term deos%ts w%th Commerc%al +anks and %n call mone!

market thro/gh -()6 etc. to ma%m%Fe the !%eld on assets. +es%des

rema%n%ng &%g%lant5 the #ank has #een mak%ng concerted efforts to #r%ng

down the le&el of non4earn%ng assets of the #ank to %ncrease the

f%nanc%al marg%n.

A de ta%led acco/nt of the so/rces and /ses of f/nds for the last three

!ears %s resented %n the follow%ng ta#le.

$%&RCE$ A*' &$E$ %F F&*'$ +A$ 5 EAR$ (Rs. In Lakhs)

$*o

Prticurs 2####1 2##1#2 2##2#3 2##3#4 2##4#5

a. ShareCa%tal

2*".3, 311.' 3,'2.2 3'2.20 30'2.2

#. Reser&es 03".0 0*2.3 1*"." 10".0 11*".'

1. Owned(o/nds

11','.2, 12*3. 1"*1,.12 1"*',.12 1'*1,.12

2. -eos%t '**. ,312*.'0 ,"2.1 ,'02.1 0"2.1

3. +orrow%ng "*12".2* ""100."* '2200.' '2'0.' ''200.'". Other

;%a#%l%t%es,"22.0 11**.0 1311'.1" 13,''.1" 1'11'.1"

%A+ 12112"3" 13"556#2 165134" 1!334## 1"1336#

8



Share Capital

2%Reserves

7%

Deposit

52%

Borr owing

31%

Other Liabil iti es

8%

P%$II%* A$ %* 31#32##5 (Rs I* CR%RE)

Prticurs Amount to tot7or8in9 C:it

Share Ca%tal 3,.'2 2Reser&es 1.*' ,-eos%ts ,".2 '2+orrow%ng '22.00 31Other;%a#%l%t%es

131.1'

ot 16513 1####

Prticurs 2##2#3 2##3#4 2##4#5

Cash 7 +ank+alance

201.1 2,,,.1* *"22.*2

one! at Call 111.3 102,.31 1,",'.'16n&estments 10.1" 233'1.23 "1".0;oans 7

Ad&ances'3.* 311'.2 0103.,*

(%ed assets ",.0 ''. ',.*1Other Assets ,*,.', 003".' 1'"2.0

ot 12112"3" 13"556#2 165134"

9



PR%P%RI%* %F C%*RI/&I%* FR%M .ARI%&$ $%&RCE$ %

%A+ F&*'$ %F ,E /A*0

,ed of Account #f contri;ution to

/n8 resources2243 234" 2"4'

Pa%d / ca%tal 2.1 2.2 2Reser&es ,.3 *." ,Own (/nds 0.'* .* 0-eos%ts "*.2" '2." '2+orrow%ngs 3. 31., 31Other ;%a#%l%t%es *.12 ,.3

ot 1#### 1#### 1####

The so/rce w%se mo#%l %Fat%on /nder &ar%o/s ortfol%os are anal!Fed#elow :

$<re C:it

C%MP%$II%* %F PAI'&P $,ARE CAPIA+ %F %$C/

2##2#3 2##3#4 2##4#5

Pa%d / Share Ca%tal 2*".3, 311.' 3,'2.2Of wh%ch 8o&t. ShareCa%tal

*2'. *2'. ,'.

Percentage of 8o&t.Share Ca%tal to totalshare Ca%tal

23.*,H 2.* 23H

8rowth rate of shareca%tal o&er re&%o/s rate

,.'"H 1,H 21H

The mem#ersh% and #reak4/ of share hold%ng %s as /nder .

10



PAID UP CAPITALK MEMBERSHIP WISE (Rs. In L!"s#

As on 31#3#3 As on 31#3#4 As on 31#2#5

*o Amount *o Amount *o Amount

State 8o&t. 1 *2'. 1 *2'. 1 ,'.Cen tral coo.+ank

1, 1,1.'2 1, 23*".'1 1, 2,*3.*'

Ae Coo.Soc%et%es

11 3".33 11 3".33 11 3".33

Other Coo.Soc%et%es

'0 "0. '0 "0.01 * "0.02

Other 6nst%t/t%ons 2 .2 2 .2 2 .2

Nom%nal em#er 02'" '0., 02, 2,.2, 1223 20.3*

ot "344 264#3 "36# 31#1#4 12321 3522!

13 Reserve =

S%nce %ncet%on5 the +ank has not onl! ach%e&ed the #reak e&en le&el

#/t also atta%ned s/sta%na#le &%a#%l%t!. As a res/lt the #ank cont%n/ed to

#/%ld / %ts reser&es and (/nds as er the ro&%s%on of the +!e4laws.

The total Reser&es at the end of 21422 stood at Rs. 1*"." lakh

as aga%nst Rs. 0*2.3 lakh %n 241. 6ns a#sol/te terms5 the

reser&es has %ncreased #! Rs. 102.1 lakh d/r%ng the !ear.<ear w%se comos%t %on of reser&es and f/nds of the #ank from 10004

2 to 21422 and growth o&er the re&%o/s !earIs os%t %on are

%nd%cated #elow.

9Rs. 6n ;akhs

y:es ofReserves

2##2#3-ro>t<

2##3#4-ro>t<

2##4#5-ro>t<

Stat/tor!Reser&e (/nd

*'".3, 3'H *'".3, 4 0'*,.22 "*H

Agr% l. Cred %tSta#%l%Fat%on(/nd

2223.0 H 2313."3 "H 2*2*."2 13.'H

OtherReser&es

*'*.*3 01H '00'.3 4 ,22.2 21H

ot !"34"# 63 !"62!3 #31 1#!64!4 2122

11



-R%7, RAE %F RE$ER.E$

9Rs. 6n ;akhs

er Amount Amount >ise Increse

over st yer

Percent9e of

9ro>t<

2243 03".0 1"2.* 2'.0H

234" 0*2.3 2,.03 .31

2"4' 1*"." 102.1 21.22

14 'e:osits

-/r %ng the !ear /nder reor t5 the +ank co/ld mo#%l %Fe an

arec%a#le B/ant/m of deos%t of Rs. ,"2.1' lakh as aga%nst

Rs. ,312*.'0 lakh at the end of the !ear5 241 reg%ster%ng a

growth rate of 2H.

Comarat%&e os%t %on of the deos%t of the +ank o&er last three

!ears along w%th the growth rate o&er re&%o/s !ears are %nd%cated

o&er leaf :

(A) 'EP%$I P%$II%* %F %$C/ F%R +A$ 3 EAR$

9Rs. 6n ;akhs

er ot

'e:osit

Amount of Increseover :revious yer

Percent9e of9ro>t<

2243 '**. 1"3*."0 3"H

234" ,312*.'0 1,110.,1 31H2"4' ,"2.1 1"3''.'0 2H

12



(/) 'EP%$I ?MI@ of %$C/ FR%M 1"""2### % 2##12##2

y:es of'e:osit

2##2#3

'e:osit

to'e:osit

2##3#4'e:osit

to'e:osit

2##4#5'e:osit

to'e:osit

C/rrent-eos%t

1*.*0 3.22 1*,3.11 2.20 3123.12 3.',

Sa&%ngs+ank-eos%t

10*.0, 3.3 2"2".*0 3.32 33*2.00 3.'

Term-eos%t

'233.22 03." *02.,0 0".30 00*., 02.'

ot 56##6!! 1## 31265" 1## !4!21! 1##

'EP%$I ? MI@ (As on 31st Mrc< 2##5)

(rom the forego%ng ta#les %t wo/ld #e seen the demand deos%t %.e. the

c/rrent and sa&%ng #ank deos%t formed ,."2H and the t%me deos%t %.e.

term deos%t formed 02.'H of the total deos%t. The #ank %s mak%ng

concerted efforts to ra%se the low cost deos%ts #! oen%ng more

#ranchesGetens%on co/nters and %mro&%ng c/stomerIs ser&%ce. Total

+ranch a/tomat%on 9T+A and %nstallat%on of AT for ro&%d%ng an! t%me

#ank%ng ha&e heled the #ank %n a # %g wa! to a/gment deos%t

reso/rces.

Term -eos%t

02H

C/rrent -eos%t

"H

S. +. -eos%t

"H

13



(C) %7*ER$,IP %F 'EP%$I %F ,E /A*0 FR%M ""2### %

2##12###2

sources 2##2 #3 2##32##4 2###42###5

Amount of (ot

de:osit

Amount of

(otde:osit

Amount of

(otde:osit

CC+ 22'2.3 'H "133.* ''H '21.*, 'H

Other Coo. 1*0*".'" 3H 1,"'.0 2*H 1"2,.12 21H

6nd%&%d/al 1,0.0* 2H 1"2",.2 10H 1233.20 21H

(ot 56###6!! 1## 31265" 1## !4!21! 1##

(rom the a#o&e anal!s%s5 % t %s o#ser&ed that %nd%& %d/al deos%ts

const%t/te 21H of the total deos%ts as at the end of 21422 and we

ha&e to real%gn o/r f/nct%on%ng to ach%e&e the targeted le&el of "H.

%7*ER$,IP %F 'EP%$I$(As on 31st Mrc< 2##5)

CCB

58%Other Coop.

21%

n!ivi!"als

21%

'EP%$I$ %F CC/s PAC$

As the leader of the Coo. Cred %t mo&ement %n the State5 we ha&e

alwa!s tr%ed to foster the ca/se of o/r const%t/tents and heled them %n

de&elo%ng the%r reso/rce #ase. Je ha&e ro&%ded f%nanc%al ass%stance

to the CC+sGPACS to oen new #ranches %ncl/d%ng ah%la +ranches to

14



g%&e fact4l %f t to the e%st %ng #raches and to create %nfrastr/ct/ral

fac%l%t%es at PACS le&el for consol%dat%on of the %n% +ank Scheme.

The ta#les #elow %nd%cate the growth of deos%t at PACSG-CC+s and

OSC+ le&el for ast f%&e !ears s%nce 100,40.

PAC$+AMP$

9Rs. 6n Crores

<ear Total -eos%t 8rowth H of 8rowth

241 1'1.2, "'.* "3H

2142 10,."3 "*.1* 31H

2243 2"0.3 '2." 2,H

234" 311.33 *1.' 2'H2"4' 3"2.,* 31."3 1H

'CC/s

241 *1,.0' 11,.,1 2"H

2142 ,**.'" 1".'0 2"H

2243 0',.,* 101.22 2'H

234" 11.0* 231.2 2'H

2"4' 1"23.,3 23".,, 2H

%$C/

241 33'., 0,. "1H

2142 "1,. 1.3 2"H

2243 '*., 1"3., 3"H

234" ,31.2* 1,1.10 31H

2"4' ,".2 1"3.'* 2H

15



C%MPARAI.E 'EP%$I$ P%$II%* %F ,E /A*0

/orro>in9s

6n order to meet the demand of cred%t at grass roots le&el5 the+ank cont%n/ed to #orrow from R+65 NA+AR-5 NC-C5 S6-+6 and State

8o&ernment. The total #orrow%ng o/tstand%ng f rom all so/rces

amo/nted to Rs.'2200.' lakh as on 31st arch5 2' as aga%nst

Rs.""100."* lakh as on the corresond%ng date of the re&%o/s !ear.

The #orrow%ngs formed 31H of the work%ng ca%tal on 31.3.22

aga%nst 32H on 31.3.21.

Total #orrow%ngs from d%fferent so/rces ra%sed #! the +ank d/r%ng last "

!ears along w%th growth rate o&er re&%o/s !ears are g%&en #elow.

9Rs. 6n ;akhs

er ot mount /orro>edFrom $ources

Increse in Amount%ver :revious yer

-ro>t< Rte

2142 3,*".0* 9K 2*2.0 '.H

2243 "*12".2* 9K "3.3 22.'"H

234" ""100."* 4 4

2"4' '2200.' 9K 00.'0 1.32H

$ector>ise /orro>in9s from *A/AR'B R/I $tte -ovt nd *C'C

durin9 st t<ree yers

Prticurs+orrow%ng

from NA+AR-

2##2 #3 2##3#4 2##4#5

$ $A%

Short Term9SAO

1,1.*2 221'.*2 22'.,"

Short Term9OPP

1,'.** 11".0* 1,.

ST G -TP 3'3'.3, "*.,' ''2.1,

16



ot $ ($A%) 23""6365 25411! 254#"1

$ ,ndoom

CC+ for ktg. 7rod/ct%on ofcloth

',*.32 ,3.'0 0*2.1'

Trad%ng %n !arn 100. 4 4

-emand loanfrom NA+AR-

""'. "'. "'.

ot $/orro>in9from *A/AR'

34521" 3#"# 33##3#6

MC RMIC 5#!!1 242#! 63532!

T (arm sector 10,.3 23"0., 2""*.0"

T Non farm 20*".0, 3*.3' '23.3

;T (arm Sector 1,.1 1"'., 22'3.2"

ot *A/AR'/orro>in9

41545" 415"66! 4"33"!2

R+6 demand;oan

". '. ".

;oan from statego&t. %ncl/d%ngworld #ankass%stance

0*.' 12'."2 2"".01

;oan (romNC-CG S6-+6GOT)ER 6nst

3,3.0 "".3' '1".31

-RA*' ot 4612426 441""45

$<ort erm /orro>in9s

) From Reserve /n8 of Indi

Cred%t accommodat%on of Rs. ". lakh was sanct%oned #! the

Reser&e +ank of 6nd%a aga%nst ledge of 8o&ernment sec/r%t%es

for meet%ng the e%genc%es of general +ank%ng oerat%ons. -/r%ng

the !ear /nder reort5 the +ank #orrowed Rs. ". lakh aga%nst

th%s l %m%t and rea%d Rs.'. lakh lea&%ng a #alance of Rs.

". lakhs as on 31.3.22.

17



;) From *A/AR'

NA+AR- cont%n/ed to #e ma%n ref%nanc%ng agenc! of the +ank

d/r%ng the !ear 21422 and the total #orrow%ng o/tstand%ng

from them /nder Short Term stood a t Rs.333.* lakh

const%t/t%ng **.0H of total #orrow%ngs of Rs. "0330.2 lakh from

NA+AR-.

$<ort erm A9ricutur /orro>in9s from *A/AR' for $eson

A9ricutur %:ertions

The oerat%ons on SAO l%m%ts were as /nder :

(Rs. In Lakhs)

/orro>in9

%s s on

31#32##4

'r>sdurin9

2##3#4

Re:ymentdurin9

2##4#5

/orro>in9

%s s on31#32##5

SAO 221'.", 21320.'" 212*.2, 22'.,"

OPP 11".0* 1,. 11".0* 1,.

-TP "*.,' ''2.1, "*1.,' ''2.1,

ot 25411! 2!6111 264!"! 254#"1

A comara t%&e os% t%on of /t %l %Fat %on of NA+AR- SAO l%m% t 100"40' to

21422 %s as /nder.

NA+AR- sanct%oned ST 9SAO cred%t l%m%t of Rs. 30.** crore %n fa&o/r

of 1* Central Cooerat%&e #anks for the !ear5 21422 for f%nanc%ng

cro loan %ncl/d%ng sec%al l%ne of cred%t /nder O6; L SEE-S rod/ct%on

rogramme9OPP and de&eloment o f t r%#a l o/lat%on 9-TP

amo/nt%ng to Rs. 21.' crore5 and Rs. *1, crore resect%&el!. OPP

l%m%t was sanct%oned %n fa&o/r of , CC+s whereas the l%m%t for -TP was

sanct%oned %n fa&o/r of CC+s.

18



&I+I$AI%* %F *A/AR' +IMI

9Rs. 6n ;akhs

erot

%A+ $A% imit snctioned ;y *A/AR'Mimum

%s

rec<ed

of&tiistion

0,40 0'. 1. 3. 4 1"11. *'2.10 3.11

0400 02*'. 0*'. 1'. 22'. 12'3. 12. 2.,

004 1130. '2. 1. 1*. 1"112. 12"1. ,.03

41 12''. 1'. 2'. 22". 1'''. 1"01*.31 0".

142 1'''3. 13*'. 2. 20". 1032. 1""1.*3 0,.

243 221. 32''. 1'. "0. 33". 2',., '.

34" 21*3. 2*. 1'. "2. 2"0. 2',0,.12 0.'2

"4' 22,0. 21'. 4 *.1,. 30*'. 20*0.10 03.''

%PREAI%* %F 'EMA*' +%A* ACC%MM%'AI%* $A*CI%*E'

/ *A/AR' A-AI$* P+E'-E %F -%. R&$EE $EC&RIIE$

A demand loan l%m% t of Rs. "'. crore was sanct %oned #! NA+AR-

d/r%ng the !ear 21 422 aga%nst ledge of 8o&t. and other Tr/stee

Sec/r%t%es for f%nanc%ng seasonal agr%c/lt/ral oerat%ons. The deta%ls of

oerat%ons on the l%m%t d/r%ng the !ear /nder reort %s f/rn%shed #elow :

(Rs. In Lakhs)

;%m%t Sanct%oned "'.

O/tstand%ng at the #eg%nn%ng

of the !ear 9on 1.".2"

"'.

-rawls d/r%ng the !ear "'.

Rea!ments d/r%ng the !ear "'.O/tstand%ng as on 31.3.2' "'.

/orro>in9 from *A/AR' for finncin9 :roduction nd mr8etin9

of ,ndoom cot< on ;e<f of CC/s

19



(or f%nanc%ng the wea&ers coo soc%et%es for rod/ct%on and market%ng

of handloom fa#r%cs5 NA+AR- sanct%oned a cred%t l%m%t of Rs. 2'.,,

lakh on #ehalf of 1" CC+s.

Aga%nst the l%m%t 5 Rs . 0*2 .1' lakh was ad&anced and Rs. ,3.'0 lakh

was rea%d d/r%ng the !ear5 lea&%ng a #alance of Rs. 0*2.1' lakh as on

31.322.

Comarat%&e os%t %on of the l %m%t sanct%oned %n fa&o/r of -CC+s and

oerat%on on the l %m%t d/r %ng the last three !ears are f/rn%shed

here/nder.

(Rs. In Lakhs)

er

Credit

imitsnctioned

durin9

t<e yer

'r>sdurin9

t<e yer

Re:ymentsdurin9

t<e yer

%utstndin9t t<e end of

t<e yer

Mimumoutstndin9

ofutiistion

243 *32.22 ",,*.32 ',"1.", ",,*.32 ",,*.32 ,'H

34" 21,,.0, ,3.'0 ",,*.32 ,3.'0 ,3.'0 "H

"4' 2'.,, 0*.1' ,3.'0 0*2.1' 0*2.1' 3,H

$nction of $ (,+) imit for finncin9 %$,7C$ for :rocurement

nd mr8etin9 of <ndoom cot<s nd trdin9 in yrn ;y *A/AR'

NA+AR- has not sanct%oned an! l%m%t aga%nst OS)JCS d/r%ng 214

22.

Comarat%&e os%t%on of l%m%t sanct%oned %n fa&o/r of the Or%ssa state

)andloom wea&ers cooerat%&e soc%et %es ;td. for roc/rement and

market %ng of cloth and trad%ng %n !arn and oerat %on there aga%nst

d/r%ng the last " !ears are f/rn%shed %n the follow%ng ta#le.

20



(Rs In +8<s)

er

Credit imitsnctioned

;y

*A/AR'

'r>sdurin9 t<e

yer

Re:ymentsdurin9 t<e

yer


t<e yer

snctioned

Mimumoutstndin99inst t<e

imit

ofutiistion

142 11. 11. 11. 11. 11. 1

243 11. 11. 11. 11. 11. 1

34" 4 4 11. N%l 4 4

"4' 4 4 4 4 4 4

AR* (Rs In +8<s)

er

Credit +imit$nctioned

/y

*A/AR'

'r>s

'urin9

<e yer

Re:yments durin9t<e yer


t<e yersnctioned

Mimumoutstndin9

durin9 t<ey re

ofutiiDtion

142 2. 2. 100. 2. 2. 1.H

243 2. 100. 2. 100. 100. 00.'*H

34" 4 4 100. 4 4 4

"4' 4 4 4 4 4 4

/orro>in9s from *A/AR' for finncin9 investment credit

Term loan #orrow%ngs /nder d%fferent schemes d/r%ng !ear 214

22 are g%&en o&erleaf.

P/roseOGs as on

31.3.2"

-rawlsd/r%ng

2342"

Rea!mentsd/r%ng 2"4

2'

OGs as on31.3.2'

(AR Sect.9T

23"0., ,*'.3* **.12 2""*.0"

(AR Sect.9;T

1"'.,0 12'.1 *1.3* 22'3.2"

Non (arSect. 9T

3,0.1* 2112.* 22., '.,*

S)8 9T ,.10 1",."1 23.* 22.'"Total *3." "'1.2* 2131.*1 003."

21



-/r%ng 21422 NA+AR- allocated Rs. "'. lakhs for ro&%d%ng

ref%nance /nder schemat%c and #ank a&a%led ref%nance to the t/ne of Rs.

"'1.2* lakh.

/orro>in9s from ot<er institutions

The total #orrow%ng o/tstand%ng as on 31.3.22 from d%fferent

%nst%t/t%ons are g%&en #elow.

SlNo.

Name of the6nst%t/t%on

O/tstand%ng as on31.3.2'

1. NC-C *.'

2. S6-+6 ""'.,3

3. -()6 4M

". aharashtra CC+ 4

Total '1".31

/orro>in9s from *C'C

+ank was %mlement%ng 6-A ass%sted NC-C L 6 and NC-C L 66

god own%ng ro$ects from (e#r/ar!5 10' to @/ne 1002 for constr/ct%on

of r/ral godsons for PACSGRCSGOSC(GT-CC5 etc. the total

#orrow%ng o/tstand%ng from NC-C as on 31.3.22 rema%ned at Rs.

*.' lakh.

/orro>in9s from $I'/I

The #orrow%ngs o/tstand%ng stood at ""'.,3 lakh w%th S6-+6 as on

31.3.22.

114 %t<er +i;i i ties

Other l %a#%l % t %es of the +ank rema%ned at Rs. 12."3 lakh as on

31.3.22 as aga%nst Rs. ,,,2.0* lakh as on 31.3.21. Other

;%a#%l %t %es %ncl/des reser&e aga%nst o&erd/e %nterest5 %nterest

a!a#le and other s/ndr! l%a#%l%t%es.

22



&$E$ %F F&*'$

Cs< /n8 /nces

The #ank had ma%nta%ned cash and #ank #alance of Rs. '12."3

lakh w%th R.+.6 and other nat%onalsed #anks as on 31.3.22 to

meet the stat/tor! reB/%rements and other #/s%ness related

act%&%t %es. Comarat%&e os%t %on of cash and #ank #alances for

three !ears from 31.3. to 31.3.22 was as /nder.

Com:rtive yer end :ositions cs< nd ;n8 ;nces for t<ree

yers (Rs In +8<s)

Cs< nd /n8 ;nces >it< ot<er notified ;n8s

Cs< R/I $/I *tion/n8s

ot

31.3.23 3'.1" 23'.03 2.*" ,.* 201.1

31.3.2" *2.1" 1**3." 3'."' 1. 2,,,.1'

31.3.2' '.3" ""20." 30,.1 1."3 '12."3

InvestmentComarat%&e os%t%on of %n&estment of the #ank d/r%ng ast three !ears

%n f/rn%shed #elow. 9Rs. 6n ;akhs

$*o

(y:e ofInvestment

2##2 ? 2##3 2##3 2##4 2##42##5

1.

6n&estment %ncentral G statego&ernmentsec/r%t%es

1*2.0" 132,.3 3231.,1

2.Other Tr/steeSec/r%t%es 2*,". 2*20. 2'".

3.Shares %n coo.6nst%t/t%on

1'.2 1'.2 1'.2

". Other 6n&estment111.3

2,32,.31 2"''.,

23



'. (ot 2!"#"" 431!54 5"4!661

*.Total %nterest !%eldon %n&estmentd/r%ng the !ear

310.* "''1.,' '31.0*

Com:rtive 9ro>t< rte of Investments

er Amount -ro>t< over:revious yer

of -ro>t<rte

2142 22,.,, 3*'2.02 2H

2243 200.0, *02.2 31H

234" "31,.'" 1"2*.', "0H

2"4' '0"*.*1 1*3., 3H

Money t C nd $<ort *otice

J%th a &%ew to ma%m%F%ng the !%eld on assets the #ank has

%n&ested %ts seasonal s/rl/s f/nds %n short term deos%ts w%th

aro&ed #anks and other f%nanc%al %nst%t/t%ons. S/ch short term

%n&estment o/tstand%ng as on 31.3.22 was Rs. 1,",'.'1 lakh

as comared to Rs. 102,.31 lakh on 31.2.21.

(or r/dent da%l! management of f/nds. +ank /sed to %n&est da%l!

s/rl/s f/nds %n call mone! market thro/gh -()6 d/r%ng the !ear.

+es%des %n order to ma%m%Fe !%eld on %n&estments5 the #ank has

esta#l%shed a treas/r! management cell for trad%ng %n go&ernment

sec/r%t%es thro/gh CS8; acco/nt w%th the -()65 /m#a% 6C665

SC #ank and co/ld earn a net amo/nt of Rs. 0'".'3 lakh.

+ons nd Advnces

;oans and ad&ances const%t/ted '"H of the total assets of the

#ank. The total loans and ad&ances /nder d%fferent sectors as on

31.3.22 stood at Rs. 0103.,* lakh as aga%nst Rs. 311'.2

24



lakh of the re&%o/s !ear. The total %ncrease o&er re&%o/s !ear

was Rs. ,0,,.0" lakh record%ng growth rate of 0.*H.

'

1

"

110

'

1

1'

2

2'

3

3'

"

"'

'

ST 9SAO: ST 9);: ;T Cash Crdt TGTC Other

25



+%A*$ A*' A'.A*CE$ $EC%R7I$E 'EP+%ME*

As on 31st Mrc<B 2##5

Ru:ees in

+8<

of tot

Advnce

ST 9SAO %ncl/d%ng OPP GNP-P G -TP "'31.1' 'H

St 9); to Ae and JCS ,'.02 H

;T 96-A storage ro$ect 02.** 1H

Cash cred%t 30. "H

T 9(S G TCG ;T 9(S 1*3,'.,1 1H

Others 1,.32 10H

ot "1#"36 1##

Sectoral comarat%&e data on loans and ad&ances for last 3 !ears %s

f/rn%shed #elow.

$ector?>ise outstndin9 of ons nd dvnces of t<e ;n8 for t<e

st t<ree yers

y:e of +on 2##2#3 2##3#4 2##4#5

$<ort erm ($A%)

Normal 20,3.1 31"2.3* 3"'3,.0,

OPP "1*'.*" 203.2' 3*',.*0

NP-P 4 4 4

-TP '2.0* *'33." ,11"."0

TCGRTC "*.1' **".3" 1**,.,3

TG;Tschemat%c GR-P

"13.2" '2*,.00 ',,.0

ST !arn loan to Ae J.C.S. ,'3".*1 ,3"1.' ,31,.,

;T 96-A storagero$ect

02."2 0"0.' 02.**

26



Cash cred%t ,0,1.33 3'." 30.

Others 1'1.1 1,03.32 1,.32

ot !##53#6 !3115!2 "1#"36

6ncrease o&erre&%o/s !ear

1'1.3 3*2.,* ,0,,.0"

Percentage ofgrowth

23.2'H "H 0H

$<ort term A9ricutur Advnce for seson A9ricutur

o:ertion ($A%)

-/r%ng the !ear /nder reort5 NA+AR- had sanct%oned aggregate SAO

l%m%ts of Rs. 30.** crores. The /rose w%se sanct%on of l%m%ts for ST9SAO %s g%&en #elow :

$*o

Pur:ose *o of 'CC/s+imit

$nctioned

1. St SAO 9general 13 22,0.

2. O%lseed rod/ct%onrogramme 9OPP

, 21'.

3. NP-P

". -e&eloment of tr%#alo/lat%on 9-TP

*1,.

ot 3#"65!!

The deta%ls of oerat%on of ST SAO l%m%t #! CC+s was as /nder.

ST SAO o/tstand%ng aga%nst CC+s

as on 31.3.21 "''."'

ST SAO drawls a&a%led #! the CC+s

-/r%ng 21422 ""''.0"

Reco&er %es from CC+s d/r %ng 21422 ""1.23

ST SAO o/tstand%ng aga%nst CC+s

As on 31.2.22 "'31.1*

a%m/m o/tstand%ng aga%nst

CC+s d/r%ng !ear 21422 "'31.1*

27



-%s#/rsement of cro loan for seasonal agr%c/lt/ral oerat%on at the

gro/nd le&el d/r %ng khar% ff 5 21 and Ra#%5 21 L 22 was Rs.

3132".* lakh and Rs. 22300.13 lakhs resect%&el! aga%nst target of Rs.

". lakh and Rs. 22. lakhs.

Cro loans f %nanced d/r%ng last 3 !ears at the gro/nd le&el #oth %n

har%ff and Ra#% seasons are f/rn%shed #elow.

9em#ers 7 Rs. 6n ;akh

<ear Target of 6n&estment

har%ff Ra#% Total

22423 2''. 23. ''.

2342" 3'2. 2. ''2.

2"42' ". 22. *2.

er 'is;ursed durin9 t<e yer

har%ff Ra#% Total

No. Amo/nt No. Amo/nt No. Amo/nt

22423

3.0, 2*2'1.1* 2.,0 1*3,2.* *.,* "2*23."

2342"

".*3 31,.3* 1.,, 12,".0 *." "33*.3"

2"42'

".' 3132".* 2., 22300.13 ,."' '3,23.10

28



Finncin9 of 0ind Com:onent under $ ($A%)

O/t of total cro loan of Rs.'3,23.10 lakh d%s#/rsed d/r%ng the

!ear 214225 +I comonent const%t/ted Rs. 1""3.,0 lakh ofwh%ch RS. ,1."" lakh was %n har%ff and Rs. ,"2.3' lakh %n

Ra#%.

The k%nd comonent loan was released for fert%l %Fer5 est%c%des5

seeds5 etc. and formed 2,H of the total loan d%s#/rsed d/r%ng the

!ear 21422.

Finncin9 to sm frmers

-%s#/rsement to small and marg%nal farmers const%t/ted H of

the total d%s#/rsements of Rs. '3,23.10 lakh /nder cro loan

d/r%ng the !ear 214225 and %t was far a#o&e the st%/lated

m%n%m/m l%m%t of 2H.

$esonity 'isci:ine

Accord%ng to oerat %onal cond% t%onal t%es st%/lated #!

NA+AR- 5each CC+ sho/ld collect #! 31 st arch at least 'H of

%ts har%ff demand or "H of %ts total S. T. Agr%l. ;oan demand

wh%che&er %s #enef%c%al to the CC+ and ass on the same to the

SC+ #! end of 31st arch so as to #ecome el%g%#le to oerate

/on the%r ST9SAO l %m%t f rom 1 st Ar%l . S%m%larl! each CC+

sho/ld collect atleast 'H of the%r total ST Agr%l. -emand #! the

end of 3 th $/ne and ass on the reco&er%es to Ae +ank to

coml! w%th seasonal%t! d%sc%l%ne to #ecome el%g%#le to oerate

/on the l%m%t from 1st

@/l!.-/r%ng 21225 ' CC+s namel! +hawan%atna5 Aska5

a!/r#han$ 5 Na!agarh 7 P/r% had not coml %ed w% th the

seasonal%t! d%sc%l%ne.

Minimum Invovement

29



OSC+ and the CC+s are reB/ %red to ma%n ta%n m%n %m/m

%n&o l&ement %n SAO lend %ng %nc l/d%ng con&ers%on and

rehasement of loans to Qthe etent of at least 2'H and "H of

the%r total Net 6nternal ;enda#le Reso/rces 9N6;R resect%&el!.

+hawan%atna fa%led to coml! w%th the m%n%m/m %n&ol&ement

cr%ter%a #! 31 .3 . 22 as st%/lated #! NA+AR-.

Finncin9 under %i $eeds Production Pro9rmme (%PP)

A consol%da ted sec%al l%ne of cred% t of Rs. 21 . ' crore was

sanct%oned #! NA+AR- %n fa&o/r of , CC+s d/r%ng the !ear

2122 for f %nanc%ng the O6; SEE-S PRO-CT6ONPRO8RAE 9OPP. nder th%s rogramme the +ank had

f%nanced Rs. 322,. 1' lakh and reco&ered Rs. 2"*2. ,1 lakh

d/r%ng 2122 . O/tstand%ng %n th%s acco/nt rema%ned at Rs.

3*',. *0 lakh aga%nst the Central Cooerat%&e +anks as on 31 .

3. 22.

,ndoom Finnce

(or rod/ct%on and market%ng of handloom cloth5 +ank had etended

ref%nance s/ort to the Central Coos. +anks #! a&a%l%ng ref%nanc%ng

r%mar! Jea&ers Cooerat%&e Soc%et!. NA+AR- had sanct %oned

aggregate cred%t l %m%t of Rs. 2'. ,, lakhs %n fa&o/r of 1" -CC+s

d/r%ng the !ear 2122.

The t%l%sat%on aga%nst the l%m%t %s f/rn%shed #elow:

Cred%t l%m%t sanct%oned #!NA+AR-

2'.0,

O/tstand%ng as on 31 .3.21 ,3.'0

-rawals d/r%ng the !ear 0*2.1'

Rea!ments d/r%ng the !ear ,3.'0

O/tstand%ng as on 31 .3.21 0*2.1'

30



NA+AR- has not sanct%oned an! l%m%t on #ehalf of Ae JCS d/r%ng

2122 for roc/rement and market%ng of cloth.

ed%/m TermG;ong Term ;oans /nder (arm G Non4(arm Sector toCC+s:

The +ank has #een ro&%d%ng ref %nance s/ort to the CC+s for

f %nanc%ng %n&estment cred%t /nder farm sector and non4farm sector

d/r%ng the !ear 2122.

-CC+s had f%nanced to the t/ne of Rs."13.20 lakh /nder farmGnon4

farm sector and a&a%led ref%nance of Rs. "'1. 2* lakh d/r%ng 214

22.

Pur:ose >ise Finnce for investment credit under from nd non

frm sector nd viment of refinnce from *A/AR' durin9 2##4

2##5

8ro/nd ;e&el -%s#/rsement Ref%nancea&a%led fromNA+AR- 2"42'

P/rose Target Ach%e&ement

(arm Sector No. Amo/nt

%nor 6rr%gat%on *". 1,2 31.,* 23.22(arm echan%sat%on 2,3. '0 11,.2 0,,.2,

Plantat%on 7)ort%c/lt/re

2 02" ."* 133.,"

-%ar! 2 1"' '*.0, 12.0

(%sher! 2 313 *".* 12.0

Po/ltr! 1 1 112." 1*.*"

6R-P 23"1 "30.'" ,2.21

Others *0 ,3 '"2.2' 13".,"ot 556# 132! 2"3"# 2#"361

Non4(arm Sector 9%ncl.R/ral )o/s%ng:

2"" "*,, 1210.30 10',.*'

ot !### 1"64 4#132" 4#5126

Individu Finnce ;y %$C/

31



+ank had also f%nanced to %nd%&%d/als for )o/s%ng5 SS6 n%ts5 EB/%ment

f%nance5 cash Cred%t and other term loan o/tstand%ng as on 31. 3. 2'

%s f/rn%shed here/nder.

Part%c/larsO/tstand%ng

As on 31.3." As on 31.3.2'

Cash Cred%t 7O&erdrafts

2"'1.," 23',.0

N(S 9T ;oans ,'.'3 020.30

)o/s%ng 2,,."' 3,*."

SS6 n%ts 4 4

;oan to S)8 '.1 10.2

(or Non4Agr%lP/roses

3*33.23 """.2

Total 032.0* 1120."0

32



6NCOE AN- EPEN-6TRE

A) Income

The a$or so/rces of %ncome of the +ank %s %nterest on loans and

ad&ances. -/r%ng the !ear 214225 s/ch %ncome const%t/ted 0.2H

of the total %ncome of Rs. 1"*13.,* lakh.

6t ma! also #e o#ser&ed that there %s a r%se %n earn%ng of %nterest of Rs.

*". 1* lakh o&er re&%o/s !ear and the growth rate was 'H .Th%s was

oss%#le d/e to d%&ers%f %cat%on of lend%ng %n non4farm and non4agr% l

sector #es%des %ncrease %n d%sensat%on of cred%t. 6nc%dentall!5 ;oan

o/tstand%ng at the end of the !ear /nder reort has gone / to Rs.

0113.,* lakh as aga%nst Rs. 311'.2 lakh 9221 .

/) E:enditures

The total eend%t/re d/r%ng the !ear after mak%ng 1H ro&%s%on for

o&erd/e %nterest and #ad de#t reser&e of Rs. 12"., lakh amo/nted to

Rs. 13*".235 as aga%nst Rs. 131",.0 lakh d/r%ng the re&%o/s !ear.

The total %ncrease %n eend%t/re comes to Rs. ,1*.33 lakh. Th%s was

d/e to ro&%s%on%ng made for o&erd/e %nterest reser&es #! Rs. 12.3

crore d/r%ng the !ear.

The net rof% t d/r%ng the !ear 21422 was Rs. ,"0.'3 lakh as

aga%nst Rs.*"0.20 lakh d/r%ng the !ear 2421 reg%ster%ng a growth

of Rs. 1.3 lakh. The comarat%&e condensed rof% t and loss

Acco/nt for last three !ears along w% th the !ear /nder reor t %s

f/rn%shed here/nder.

Prticur 2##22##3 2##32##4 2##4#5

Income

6nterest 7-%sco/nt

11"3,.,1 13''.," 1"23".0

Comm%ss%onEchange

7 +rokerage

31.,* 2,. 3.'

33



Other Rece%t 30." 210.3, 3".

ot 115#!"5 13"1" 146136

E:enses

6nterest on-eos%t 7+orrow%ng

,*.2 11,2.1 11".0*

Adm%n %s trat %&eEenses

,1.' 0.'* 03".,2

Other Eenses 310'."" '10.33 1"".''

ot 103.22 131",.0 13*".23

9 K Prof%t '2'.,3 *"0.20 ,"0.'3

ot 115#!"5 13"1" 146136

7or8in9 C:it

The work%ng ca%tal of the +ank comr%sed share ca%tal Reser&e5

deos%t +orrow%ng and other l %a#%l% t %es wh%ch stood at Rs. 1***0.0*

crore as on 31.3.2'. &ar%o/s comonents of work%ng ca%tal of the

#ank d/r%ng last 3 !ears %s f/rn%shed #elow

Prticurs 2##2 #3 to7C

2##3#4 to 7C 2##4#5 to7C

Share Ca%tal 2*." 2.10 31.1 2.23 3,.'2 2.2'

Reser&es 0.3' ,."2 0.*3 *."* 1.*' *.'1

-eos%ts '*., "*.'2 ,31.2, '2.," ,".2 '2.30

+orrow%ngs "*1.2" 3.31 ""1.00 31. '22.00 31.31

Other ;%a#%l%t%es **.0 '.'* 02.,1 *.*0 12'.0 ,.'"

ot 123.0* 1H 13*.*1 1H 1**0.0* 1H8rowth rate ofwork%ng ca%talo&er re&%o/s!ear

20H 1'H 2H

34



C%MP%$II%* %F 7%R0I*- CAPIA+

Share Ca%tal

2H

Reser&es

,H

-eos%t

'2H

+orrow %ngs

31H

Other

H

C:it deucy ? Performnce of %riss st te Coo:ertive /n8

The Comm%ttee on f%nanc%al sector reforms 1001 and Naras%mham

comm%ttee46 65 100 %nteral%a5 recommended that the ca%tal

adeB/ac! as al%ed the commerc%al #anks %n 6nd%a %n relat%on to

the%r r%sk we%ghted assets sho/ld #e made al%ca#le to the coo.

+anks. 6t %s w%del! eected that these norms wo/ld #e al%ca#le

to the sched/led state cooerat%&e #anks w%th effect from 234".

*on :erformin9 Assets nd :rovisionin9 t<ereof

The R.+.6 %ntrod/ced the r/dent%al acco/nt%ng norms for the

stateG central cooerat%&e #anks from the !ear 100*40, there#!

st%/lat%ng ro&%s%on%ng norms of non erform%nf assets. The #ank

was a#le to coml! w%th the sa%d norms %n 100,405 to 2142

and earned rof%ts as well. 6nfect5 the #ank has made ro&%s%on

m/ch %n ecess of the reB/%rements to meet the f/ t/ re

cont%ngenc%es. -eta%ls are as follows :

35



(Rs. In Lakhs)

2##3#4 2##4#5

Total Non erform%ng assets 0232 1"1".02

Pro&%s%on%ng reB/%red to #emade as er R+6 g/%del%nes/nder r/dent%al norms

1,0.* 2*.3

Ac t/al Pro& %so made '321. '321.

%verdue Interest Reserve

To co&er the O.-. %nterest5 the +ank has made 1H ro&%s%on%ng

#! 31.3.22 as ma! #e seen from the follow%ng ta#le.

9Rs. 6n ;akhs

2##3#4 2##4 #5

Pro&%s%on reB/%red to #e madeaga%nst o&erd/e %nterest

3"23.20 '20.

Pro&%s%on made 3. '3.

Cost of Mn9ement cost of management of the #ank was com/ted at Rs. 1"'.13

lakh d/r%ng the !ear 2342" as aga%nst Rs. 0'*.03 lakh d/r%ng

the re&%o/s !ear 22423 wh%ch was calc/lated at .*2H of

the work%ng ca%tal.

The comarat%&e os%t %on of cost of management d/r%ng last 3

!ears %s f/rn%shed here/nder :

Prticur 2##2#3 2##3#4 2##4#5

Cost of anagement ,1."0 0'*.03 1"'.13

H of Cost ofanagement

% Jork%ng Ca%tal .*'H .*0 .*2

%% -eos%ts 1.30H 1.31 1.10

36



%%% +orrow%ng 1.*0H 2.1* 2.

%& ;oans 7 Ad&ances

.0H 1.1' 1.1'

Mn9ement of Funds

The #ank had constantl! endea&ored for ot%m/m /t%l%Fat%on of %ts

s/rl/s L reso/rces and mon%tors f/nds delo!ment on da! to da!

#as%s. All short term %n&ert%#le s/rl/ses were arked %n h%gh L

%nterest !%eld%ng %n&estment a&en/es %n Nat%onal%Fed +anks after

meet%ng the cred%t reB/%rements of CC+sG other coos. J%th a

&%ew to ma%m%Fe rof % t the #ank has started trad%ng %n 8o&t.

sec/r%t%es #! oen%ng C4S8; Acco/nt w%th R+6 thro/gh -()6.

The cost of f/nds5 !%eld on assets5 f %nanc%al marg%n and #reak4

e&en le&el etc. for ast three !ears %n %nd%cated o&er leaf :

Prticurs 2##2#3 2##3 #4 2##4 #5

1. <%eld on Assets 11.3 1.32 1.10

2. Cost of (/nds *.02 .0, .2

3. 8ross f%nanc%al marg%n ".3 1.3' 2.1,

". %sc. 6ncome ., .1 .3

'. Cost of anagement9Amt:

,1.' 112,.0" 1*'.

H to work%ng f/nd 9A&g: .,, .' .0,

*. R%sk Cost 9Amo/nt: 31. 3. ,'.

,. Net f%n%cal arg%n 3.* .22 ."*

. +reak e&en ;e&el for

work%ng f/nd

02'. ,'1. 11,22.

0. Act/al le&el of J.(/nd9A&g:

112"".* 122,2. 1"3,0.

37



Aver9e :er Em:oyee :er /rnc< /usiness %$C/ A++ CC/

%$C/ 2##2#3 2##3#4 2##4#5

No. of +ranches * *

Per #ranch +/s%ness 9;akh: 2**. 2311. 20,*2.*'No. of emlo!ees 23, 23, 220

Per Emlo!ee +/s%ness ',".,0 ''.* ,,0.1

CC+Is

No. of #ranches 311 31* 31*

Per #ranch #/s%ness *.23 1*.02 0"0.2*

No of emlo!ees 313 3, 3,

Per emlo!ee #/s%ness *.1* ". 0,.,

,umn Resource nd Mn:o>er 'eveo:ment

The =anower> of an! %nst% t/t%on #e%ng % tIs most %mortant

reso/rce5 w%th a &%ew to ro&%d%ng knowledge %n/ts5 / gradat%on

of sk%ll5 change the m%nd set and att%t/de and to %nc/lcate a sense

of #elong%ngness %n the ersonnel %n Coo. +ank%ng sector %n

Or%ssa5 the ACST6 of the +ank %ntens%f%ed %tIs tra%n%ng act%&%t%es to

hel the Central Coo. +anksGPACSG;APS %n the%r endea&o/r to

ach%e&e s/sta%ned ecellence %n erformance. The ACST6 alwa!sa%med at de&elo%ng each tra%nee to f%nd the means to act/al%Fe

h%s f/ll otent%al thro/gh B/al%t! tra%n%ng so that a os%t%&e work

c/lt/re %s emerged and the Coo. +ank%ng str/ct/re #ecomes

&%a#le and &%#rant to face the emerg%ng challenges.

-/r%ng the !ear 21422 the ACST6 cond/cted "3 co/rses of 13

d%fferent categor%es and tra%ned ,** ersonnel.

<ear No. of co/rsescond/cted

No. of Prsonnel tra%ned

1040 3 20

10040 13 2'*

100401 31

1001402 12 2,

38



1002403 0 ""

100340" 0 322

100"40' 3* 13*1

100'40* , 1'*

100*40, '1 221*

100,40 2" '2"

100400 "2 ,'

10004 '0 1"11

241 '2 ,3

2142 *3 12,

2243 2* 3*

234" "* 13,0

2"4' "3 ,**

ot 5#3 1255

Recogn%F%ng the contr%#/t%on of ACST6 towards the de&eloment

o f h/man reso/rce %n Coo. +ank%ng Sector5 the Sta te

8o&ernment ro&%ded a grant of Rs..' ;akh %n 100"40'5 Rs.2.

;akh %n 100'40* and Rs.1. ;akh %n 100*40, from the state#/dget. The AN+AR- also sanct%oned f%nanc%al ass%stance of

Rs.*.32 ;akh d/r%ng 100"40'5 Rs..3 ;akh %n 100'40* Rs.1.,0

;akh %n 100*40,5 Rs.*.2" ;akh %n 100,405 Rs.*. ;akh %n 1004

005 Rs.".* ;akh %n 1000425 Rs..', ;akh %n 241 and ,.1

;akh d/r%ng 2142.

The 6nst%t/te has #een de&eloed as a reos%tor! of knowledge. 6n

%t Is endea&o/r %n f/rtherance of +ank%ng5 Coo. o&ement and

management4rofess%onal %sat%on5 the %nst% t/te has /#l %shed

#ooklets on N.6 . Act 5 O.C.S. Act 5 -.A.P.5 %n% +ank R/les5

r/dent%al Norms5 etc. and has as m/ch as 1' =)ando/ts> on

&ar%o/s s/#$ect. =8/ard (%les> on , +ank%ngGCoo.5 etc. all %ed

39



s/#$ects are a&a%la#le w%th the ACST6 fo r re fe rence o f

CooeratorsG#ankers and research scholars.

rinin9 :ro9rmmes conducted durin9 t<e yer 2##4#5

$*o

*me of t<e rinin9Pro9rmmesconducted

r9et 9rou:*o of

courses:nned

ot:ersonstrined

1.C/stomer ser&%ce and#eha&%o/ral sc%ence

-CC+ Staff 2 "3

2.Or%entat%on Tra%n%ngProgramme forwomen.

JomenOff%cers 7Staff of-CC+s

2 '"

3.

Tra%n%ng Programmeon Pr/dental Norm for

A/d%otrs ofCooerat%&e-eartment

A/d% tors ofCooerat%&e-eartment

3 *'

".Tra%n%ng Programmeon Pr/dent%al Norms

Staff of CC+s ' ,3

'. Ara%sa lethodolog!

OSC+off%cers

' 0*

*. Ara%sa lethodolog! and-oc/mentat%on

Staff of CC+s ' *'

,Or%enta t%on T ra %n %ngProgramme on R/ra l+ank%ng

%n% +ankPersonnel

" "*

.C/stomer or%entat%nand arket%ng of +ankSer&%ces

Staff of CC+s " '2

0.Ta%n%ng Programme onSelf )el 8ro/s Staff of CC+s " *'

1.Tra%n%ng Programmeon Com/ter=sama#a!a> ackage

Staff of CC+s 1 2,

11.Emower%ng Ser&%ceEcellence

Staff of CC+s " 11

40



12. 8eneral +ank%ng Staff of CC+s 3 "

13.Tra%n%ng Programmeof E.P.

Staff of CC+s 1 31

-E*ERA+ ? 'E.E+%PME*A+ I*IIAI.E$

Introduction of t<e system of Annu M%& from 1"""!

P/rs/ant to the anno/ncement of the )onI#le (%nance %n%ster of

6nd%a %n the #/dget Seech 100"40' %n the Parl%ament5 NA+AR-

entered %nto O w%th 8o&t. of Or%ssaGOSC+ on 1.,.100" ands/#seB/entl! w% th -CC+Is on ,..100' w% th a & %ew to

re&am%ng the cooerat%&e cred%t str/ct/re %n the State.

The er %od%ca l re& %ews /ndertaken #! NA+AR- re&ealed

%merat%&e need for %ntrod/ct%on of Ann/al O to fac%l%tate t%mel!

re&%s %on of all f %nanc%al arameters of -AP e&er! !ear on a

real%st%c manner to ach%e&e &%a#%l%t!. Th%s eerc%se w%ll ena#le the

#anks to correct the%r os%t%ons %n asset and l%a#%l%t! management5

ton%ng / cost control s!stem5 streaml%n%ng lend%ng ol%c! and

roced/re and a#o&e all %mro&%ng staff rod/c t%&%t!.

At the %nstance of NA+AR-5 OSC+ and 1, CC+s %n the State

ha&e #een s%gn%ng ann/al O from the !ear 100,40.

%:ertion of GMini /n8H $c<eme t PAC$ eve to Mo:u: rur

svin9s

6n % ts endea&o/r to romote the reso/rce mo#%l %Fat%on #! the

Coo. +ank%ng Sector %n Or%ssa5 the OSC +ank enco/raged the

Central Cooerat %&e +anks to %ntrod/ce rosect%&e deos%t

schemes s/ch as da%l! deos%ts 5 ens%on schemes5 e tc .

PACSG;APS were %dent%f %ed as r/ral growth centres for

41



mo#%l%sat%n of r/ral deos%ts. Accord%ngl!5 =%n% +anks> were

oened at PACSG;APS le&el and r/ral s/rl/s f/nds were #e%ng

moed / and a s%Fa#le amo/nt to the t/ne of Rs. 3"302.' lakhs

co/ld #e mo#%l%Fed thro/gh 1' %n% +anks #! 2"4'.

The <earw%se rogress o f mo#%l%Fa t%on o f deos%t s%nce

%ntrod/ct%on of the %n% +ank Scheme are g%&en here /nder :

er *o of Mini /n8s %:ertin9 'e:ositMo;iised(Rs. InLakhs)

100*40, ",' 30.

100,40 '03 "0'3.100400 *," ,3,.

10004 ,3 11113."

241 ,'2 1'12,.

2142 1 1"2,.3

2243 0 230".*,

234" 2 31133.1

2"4' 1' 3"302.'

The +ank framed a odel R/les for oerat%on of %n% +anks wh%ch

has #een aro&ed #! the Reg%strar of Coo. Soc%et%es5 Or%ssa

&%de letter No. 1'1"" dt. 21.*.00 and has #een comm/n%cated #!

the +ank to all concerned for g/%dance.

Introduction of 'e:osit -urntee $c<eme for 'e:osit in PAC$

P/rs/ant to the recommendat%on of ACRC and a %m%ng at

s/sta%ned growth rate of deos%ts o&er ast few !ears at PACS

le&el %n Or%ssa %nd%cat%ng the conf%dence reosed #! the eole %n

the grass root le&el short term coo. Cred%t str/ct/res5 the state

8o&t. 6ntrod/ced a =-eos%ts g/arantee Scheme> for %ndemn%f!%ng

deos%tors of PACS / to Rs. 35G4 w%th effects from 22.0.0".

42



A Cro/s f/nd has #een esta#l %shed at the -CC+ le&e l w% th

contr%#/t%ons from the state 8o&t. OSC+5 -CC+ and PACS.

er Amount contri;uted (Rs In 8<s)

21422 0.3*322423 12.1"

2342" 1'.1

2"42' 1*.

Infrstructure deveo:ment of PAC$ o:ertin9 Mini /n8s ?

Finnci ssistnce from *A/AR' out of C'F$tte

-ovt%$C/CC/

NA+AR- ro&%ded f%nanc%al ass%stance of Rs. *. lakh d/r%ng

100' L 0* to 13 PACSG;APS ha&%ng =%n% +anks> %n Or%ssa for

de&elo%ng the%r %nfrastr/ct/re. The Or%ssa state cooerat%&e #ank

the concerned central coo. +anks also ro&%ded Rs. 1'5G4 and

=Rs.'5G4 resect %&el! to each PACS wh%ch ena#le them %n

#/%ld%ng conf%dence among r/ral deos%tors. 6n the !ear 100*40,5

NA+AR- has alos sanct %oned Rs. *. lakhs o/t of C-( for

%nfrast/re de&eloment of 11*.PACSG;APS and has released *

lakh d/r%ng 100*40, and an amo/nt of Rs. *. lakh was

released d/r%ng 21422 %n fa&o/r of PACSG;APS.

8o&t. of Or%ssa ha&e also ro&%ded f%nanc%al ass%stance o/t of

state Plan for oe%n%ng o f %n% +ank %n the PACS G ;APS.

(Rs. In Lakhs)

er *o of PAC$ ssisted Amount of ssistnce

:rovided

10004 1 1.

241 "3 ".20

2142 1 0.0

2243 1 1.

234" 1' 1'.

43



2"4' 0 .00

ot 443 5#26

A) Finnci ssistnce to 'CCC/s for fce if t of t<eir

;rnc<es

The +ank %mlemented a scheme %n 100" 40' and 100'40* for

ro&%d%ng f %nanc%al ass%stance to one #ranch of each CC+ er

!ear for face l%ft. nder th%s scheme5 3" #ranches got ass%stance

of Rs. 1,. lakh wh%ch ena#le the #ranches to etend #etter

c/stomer ser&%ce and %ncrease the%r t/rno&er. -/r%ng 21422

Rs. 1, lakh has #een ro&%ded to each #est #ranch of the 1,

-CC+s for the%r facel%ft. +es%des one staff of the #ranch of each

CC+ has #een awarded w%th Rs. 'G4 for mo#%l %F%ng h%ghest

deos%t d/r%ng deos%t mo#%l%Fat%on fortn%ght.

/) %:enin9 of M<i /rnc<es ;y CC/s

(Functionin9 of >omen 'eveo:ment ce in %$C/)

J%th a &%ew to %n&ol&%ng the Jomen %n cooerat%&es for the%r

soc%o4Econom%c -e&eloment5 all the 1, CC+s5 %n Or%ssa ha&e

oened ah%la #ranches +erham/r5 h/rda5 Sam#al/r5 +o/dh

and +olang%r CC+ ha&e s/#seB/entl! oened second ah%la

#ranches and th/s5 22 ah%la #ranches of CC+S are f/nct%onal

d/r%ng the !ear /nder reor t %n the state.

State 8o&t. has ro&%ded f%nanc%al s/ort of Rs. 1." lakh to

each ah%la #ranches for %nfrastr/ct/ral de&eloment and Rs.

35G4 towards manager%al s/#s%d! er !ear and Rs. 15G4 as

one t %me ass%stance for tra%n%ng. Or%ssa state coo. +an has

ro&%ded Rs. *. lakh to 1, ah%la #ranches. ah%la a #ank ha&e

mo#%l%Fed deos%t of Rs. '**., lakh and ro&%de f %nanc%al

44



ass%stance to the t/ne of Rs. ,30.2" lakh to women #enef%c%ar%es

#! 31.3.22.

A women -e&eloment ce ll has #een esta#l %shed %n Or %ssa state

cooerat%&e #ank to g/%de and co4ord%nate the act%&%t%es of central

coo. +ank %n cred%t l%nked women de&eloment rogramme.

NA+AR- has agreed to ro&%de f%nanc%al ass%stances of Rs. .,'

lakh er !ear towards salar! of the emlo!ees of women

de&eloment cell.

C) Incentive $c<eme for recovery of on

J%th a &%ew to %nf/se comet%t%&e s%r%t among the f%eld workers5

the comm%ttee of management of the +ank ha&e aro&ed an

%ncent%&e scheme for reco&er! of coo. ;oan. nder the cat%oned

scheme follow%ng f%nanc%al #enef%t was a&a%la#le for the CEO and

other staff of PACSGlams. +ranch anagers and Adm%n%strat%&e

6nsectorsGS/er&%sors of the CC+ ach%e&%ng reco&er! of a

art %c/lar le&el. Categor! of Staff co&ered /nder scheme %s

ment%oned #elow. -/r%ng the !ear 21422 an amo/nt of

Rs.''.33 lakh was sent towards s/ch %n&ent%&e as aga%nst

Rs.*.' lakh sent d/r%ng 241. O/t of ''.33 lakh %ncent%&e

a%d d/r%ng 21425 Rs. 31.* lakh a%d for %ncent%&e to staff and

Rs. 2".2, lakh for &eh%cle eenses.

PAC$ +AMP$ (Rs. In Lakh)

Part%c/lars

6ncent%&e for Emlo!ees of PACSG;APS

Reco&er!a#o&e ,H

Reco&er!a#o&e H

Reco&er!a#o&e 0H

Reco&er!a#o&e1H

A#o&e 2lakh #/t lessthan ' lakhs

1 12 1' 2

A#o&e 'lakh #/t lessthan 1

12 1' 2 2'

45



lakhs

A#o&e 1lakh #o/tless than 2'lakhs

1' 2 2' 3

A#o&e 2'lakh

2 2' 3 3'

') Mn9er i Assistnce to 'CC/s

S%nce 1st ar%l5 100* OSC5 +ank %s meet%ng the salar! of 0 off%cers

of OSC +ank osted as Secretar! of d%fferent -CC+s. (rom 10004

2 OSC+ has #een a!%ng the salar! of all CEOs of -CC+s.

Eend%t/re %nc/rred on th%s acco/nt d/r%ng ast ' !ears were as

follows.

er Amount(Rs. In Lakhs)

241 1*.2

2142 ",.,

22423 3."'

2342" 1",.11

2"42' 2,.1'

-overnment $<re C:it Contri;ution out of *RC (+%) Fund

The Short term coo. cred%t str/ct/re %n Or%ssa cont%n/ed % ts

efforts to #/%ld / a good share ca%tal #ase and th%s heled to

o#ta%n a s%Fea#le match%ng 8o&ernment contr%#/t%on to the share

ca%tal from o/t of NRC 9;TO f/nd.

-/r%ng 2421 the 8o&t. had sanct %oned share ca%tal

ass%stance of Rs.0*,.11 lakhs #/t released Rs."*'.00 lakh onl! %n

2243. S%m%larl! 8o&t has sanct%oned share ca%tal ass%stance

of Rs.1,*0.01 lakhs for 2142 wh%ch %s not released #!

46



31.3.2. the share ca%tal ass%stance sanct%onedGreleased #! the

State 8o&t.

ME Ce -/r%ng ast few !ears there has #een a d%st%nct r%se %n the loan

ortfol%o of the +ank %ncl/d%ng schemat%c and non4farm sector

f %nanc%ng. (or roer techno4econom%c ara%sal and ost

d%s#/rsement s/er&%s%on5 +ank has created a Techn%cal 5

on%tor%ng and E&al/at%on Cell 9T%me w%th f %nanc%al s/ort of

NA+AR-. 6nd/str! and )andloom sec%al%sts man th%s cell. The

State 8o&t. has osted one @o%nt -%rector of 6nd/str%es and one

-e/t! -%rector of Tet%les to f/nct%on as Sec%al%sts %n the T6E

Cell.

ri; 'eveo:ment Ce

J%th a a &%ew to ro&%de adeB/ate cred%t s/ort to tr%#als5 at the

%nstane of NA+AR- the +ank has osted a anager to f/nct%on

as Tr%#al Cred%t Sec%al%st.

Introduction of Coo: /n8s Mutu Arn9ement $c<eme for %riss

(C%/MA$%)

To %ncrease the non4f/nd #ased earn%ng of CC+s and to ro&%de

#etter c/stomer ser&%ce to %ts deos%torsG cl%ent5 %ss/e of --s #!

Coo. +anks w%th%n the State was a long felt need. nder the

aeg%s of the OSC +ank a state le&el m/t/al arrangement scheme

was %ntrod/ced w%th effect from 1 st @an/ar!5 100* on a %lot #as%s

and the scheme has ga%ned moment/m. 6t %s roosed to co&er all

the #ranches of the -CC+s and #ranches of OSC+ %n d/e co/rse.

11* Nos. of #ranches of -CC+s and all #ranches of OSC+ ha&

#een co&ered /nder the scheme.

47



Recovery of Coo:ertive dues in %riss

Poor le&el of reco&er! has #een %dent%f %ed as one of the ma$or

constra%nts affect%ng cred%t flow and &%a#%l%t! of the PACSG;APS

and CC+s. -es%te %mlementat%on of 6ncent%&e Scheme for

ro&%d%ng cash award to the CEOGother staff of PACS and +G-m.

6ns. 7 S/er&%sors of CC+s for reco&er! of Coo. ;oan there %s

l %t tle %mro&ement %n reco&er! %n 21422. (ol low%ng ta#le

%nd%cate the reco&er! trend d/r%ng last ' !ears 9@/l! to @/ne.

Recovery durin9 st 3 yers

er PAC$ .rs Mem;er /n8 .rs $ociety

'emnd Coection 'emnd Coection

21422 '23., 22.11 '" '00.'2 2*3."' ""

22423 ,*.00 30., '* ,0,.*' 3,".'2 ",

2"42' 0"0. *22.01 ** 1,.'1 '0'.2* ''

$te:s t8en ;y %$C/ to ste: u: recovery

-/r%ng 214225 Or%ssa State Cooerat%&e +ank organ%Fed monthl!

re&%ew meet%ng of the CEOs of the CC+s and -RCS. Per%od4w%se target

for each CC+ was f%ed and ach%e&ement re&%ewed. +ank has o/tl%ned

&ar%o/s strateg%es to #e adoted for ste%ng / reco&er!. A $o%nt reco&er!

dr%&e was la/nched at the #ehest of the#ank d/r%ng the month of

-ecem#er5 21 to arch5 222.

Pu;icity t<rou9< Eectronic Medi for Recovery nd 'e:osit Mo;iistion

+ank has reared fo/r ad&ert%sement f%lms for telecast%ng %n the

electron%c med%a for %mro&%ng reco&er! and #oost%ng / %n&estment and

deosts of CC+s and PACS. (or re%m#/rsement of eend%t/re on s/ch

telecast%ng5 NA+AR- has sanct%oned Rs.'.* lakhs5 o/t of Coo.

-e&eloment (/nd. The ad&ert%sement f%lms are #e%ng telecasted.

48



Com:uteriDtion Pro9rmme

(or %mro&%ng the B/al%t! of c/stomer ser&%ce5 streaml%n%ng 6S and

f%nanc%al acco/nt%ng s!stem5 Total +ank A/tomat%on 9T+Ahas ass/med to

r%or%t!. All #ranches %ncl/d%ng ).O. ha&e #eenf/ll! a/tomated. Aart from

the a#o&e5 "* Nos. of staff of -CC+s ha&e #een tra%ned for handl%ng

com/ter. The +ank has met the ent%re cost for de&eloment of software

#! the CC ;td. Calc/tta for a/tomat%n of the #ranches and head off%ces

of the -CC+s. The software has #een s/ccessf/ll! %mlemented at +ank%

CC+ on a %lot #as%s.

Roe in incresin9 9ricutureB :roduction nd :roductivity

Cred%t %s the ke! %n/t for ste%ng of rod/ct%on and rod/ct%&%t!. The

#ank has5 o&er ast few !ears5 ens/red adeB/ac! and t%mel%ness %n cred%t

del%&er!. (low of rod/ct%on cred%t d/r%ng the ast " !ears was as /nder.

er *o of PAC$ finnced *o of Mem;ers finnced Aver9e on :er PAC$

0<riff R;i 0<riff R;i 0<riffi R;i

2142 2,, 2302 "2"',' 2''12 ,.," ".00

2243 2"0, 2',' 30,"1" 2,'2 1.' *.3'

234" 2,0 23 "*32*0 1,,"" 11." '.'2

2"4' 2*' 2'30 "''2 2,1'1 11.*, .2

er ot Cro: on

dis;ursed "in 8<s

Aver9e ondvnced :er

mem;er

%f t<e tot dvncesG/H com:onent (in

8<s)

Per mem;er offt8e of G/H

com:onent (Rs)

0<riff R;i 0<riff R;i 0<riff R;i 0<riff R;i

2142

20*".'* 1103.1* .' .* *1,*.," '"*'."3 .1 .3

2243

2*2'1.* 1*3,2.*' ., .* *01'.11 *3'.3" .2 .2

234"

31,.3* 12,".0 ., ., '0.*, ".0' .2 .3

2"4'

3132".* 22300.13 ., . ,1."" ,"2.3' .2 .3

49



,e:in9 t<e 9ro>t< of ,ndoom Production

6n Or%ssa5 )andloom ro&%des emlo!ment to large n/m#er of

ho/sehold and %s cons%dered net to agr%c/lt/re. The +ank has

f%nanced th%s letter #! s/ort%ng the rod/ct%on and market%ngact%&%t%es of *22 PJCS.

The d%str%ct w%se deta%ls of n/m#er of loans f%nanced5 rod/ct%on

of handloom fa#r%cs and emlo!ment generated %s g%&en #elow :

$*o

*me oft<e

undivided

'istricts

2##3 #4 2##4 #5

*o of+ooms

(:ro9)

Production(+8<

$Fmts)

Em:oyment(Pro9)

*o of+ooms

(Pro9)

Production(+8<

$Fmts)

Em:oyen

t (Pro9)

1. +alasore *31* 2'.03 12*32 '0' 21.,0 11,0*

2. +olang%r 1'"3 223.'1 3* 1,"3 22." 3,"*

3. C/ttack 1021 112."3 30*"2 2,2" 1*.*3 "1""

". -henkanal 201 13.0 '0*2 200* 1.* '002

'. 8an$am *02 3,.' 121" '*', 2'."" 1131"

*. alahand% '321 3.3 1*.2 '321 2.' 1*"2

,. eon$har 2 '." "1* 21*2 ".23 "32"

. ora/t 13* 1."" 2,,2 1"3, .'2 2,"

0. a!/r#han$ 3'2, .'0 ,'" 3'0 '.0 ,1

1. Ph/l#an% "2," ".3' '" ""*2 '.03 02"

11. P/r% 1*0*' ,*.3* 3303 1'0 *3.02 311*

12. Sam#al/r 12*2 **0 3*'2" 1"01 '1.' 3*02

13. S/ndergarh 00" ".3* 100 11*3 ".", 232*

ot 1#344" 36!3 2#6!"! 1#6552 32431 2131#4

%$C /n8 ,ousin9 on $c<eme

On the e&e of the Cele#rat%on of the 8olden @/#%lee of the +ank %n

1005 a c/stomer fr%endl! ho/d%ng scheme was %ntrod/ced for

%nd%&%d/als for own%ng a ho/se #! a&a%l%ng loan on eas%er terms.

50



)o/s%ng f%nance has ga%ned moment/m and the #ranches ha&e

ro&%ded s/#stant%al amo/nt of cred%t for acB/%s%t%onGconstr/ct%on

of ho/se.

,umn Resource 'eveo:ment $trte9ies

The +ank has entered %nto the 21st cent/r! w%th a cororate &%s%on

to #ecome a strong and &%#rant #ank and to lead the S.T. Coo.

Cred%t Str/ct/re to atta%n s/sta%na#le &%a#%l %t! #! ser&%ng the

agrar%an econom! of the State. 6n order to reare the h/man

reso/rces to sho/lder h%gher resons%#%l %t!5 the ACST6 of the

+ank cond/cted ad&anced hard tra%n%ng rogrammes for Off%cers

of the +ank. J%th the hel of NA+AR- one O-6 rogramme was

also cond/cted %n the #ank where%n cross sect%on of emlo!ees

art%c%ated.

*AF$C%/ *tion A>rd to %$C /n8

The NA(SCO+Is sec%al award of OTREAC) %.e. the etent of

%n&ol&ement of the OSC+ and all % ts aff %l %ated -CC+s /nder

&ar%o/s lend%ng rogrammes5 growth of the OSC+ and all % ts

aff% l %ated -CC+s /nder &ar%o/s lend%ng rogrammes5 growth of

ad&ances5 f %nac%ng weaker sect%ons5 etc. for the !ear 100"40'5

100'40*5 100*40, and 100,40 was #agged #! the +ank.

*A/AR's /est Performnce A>rd

The NA+AR- had also recogn%Fed the ecellent erformance of

the +ank #! award%ng the +est Perfomance Award for the !ear

100,40 7 0042.

$tudy on t<e Functionin9 of Mini ;n8s in %riss

At the #ehest of NA+AR- and /nder the Char%mansh% of the

anag%ng -%rector5 OSC +ank5 a st/d! has #een %nst%t/ted on the

f/nct%on%ng of the %n% +anks %n Or%ssa. Cons%der%ng the s/ccess

51



of PACS %n Or%ssa %n mo%ng / r/ral sa&%ngs thro/gh %n% +anks5

the st/d! team had eam%ned %nteral%a5 the &%a#%l%t! of %n% +ank

oerat%on5 delo!ment of f/nds5 staff%ng attern5 etc. Pers/ant to

the recommendat%on of the comm%ttee5 a re&%sed %n% #ank r/le

has #een form/lated5 aro&ed #! the Reg%strar and %mlemented

at -CC+GPr%mar! le&el.

Introduction 0issn Credit Crds in $ Coo: Credit $ector in

%riss

6n t/ne w%th the dec%s%on of the 8o&t. of 6nd%a to %ss/e =%ssan

Cred%t Cards> to farmers to meet the%r cred%t needs for cro

rod/ct%on and other all%ed /roses5 the OSC +ank form/lated

the ol%c! and %ntrod/ced the %ssan Cred%t Card %n the ST Coo.

Cred%t Str/ct/re. Sem%nars were organ%Fed at CC+ headB/arters

to del%#erate on the %ss/e and the scheme has #een la/nched

w%th effect from Ra#%5 100400. 1152050," nos. of CC ha&e #een

%ss/ed #! 31.3.22. Or%ssa stood at 3 rd %n co/ntr! %n d%str%#/t%on

of CC net to Andhra Pradesh and Ra$asthan. 6n Or%ssa5 ent%re

short term cred%t %s d%sensed thro/gh CC onl!. The +ank has

also fac%l%tated %ssan Cred%t Card holders meets thro/gh o/t thenooks and corners of the state where%n off %cers of the -CC+s5

sen%or off%cers of OSC+ and Agr%c/lt/re -eartment art%c%ated.

+ottlenecks on smooth oerat%on of the scheme and d%sensat%on

of t %mel! and adeB/ate cred%t were %dent% f%ed and correct%&e

act%ons were %n%t%ated then and there.

%r9nistion nd in89e of sef ,e: -rou:s

6n order to e&ol&e g/%del%nes and roced/res for ro&%d%ng cred%t

to the down t rodden thro/gh Sel f )el gro/s5 the #adnk

cond/cted a st/d! on f/nct %on%ng of s/ch gro/s %n North 2"

52



ragana and )ooghl! -%str%cts of Jest +engal. On the #as%s of

f %nd%ngs of the st/d!5 g/%de l %nes were %ss/ed5 workshos were

organ%Fed at OSC+ and -CC+ le&el to fac%l%tate organ%Fat%on and

l%nk%ng of S.).8s #! these concerted efforts5 the ECC+s co/ld

organ%Fe 13' S)8s5 l%nked 2'0 S)8S and ro&%ded Rs.220.2

;akhs as loan to these gro/s #! 31.3.22.

0in9 0issn -od Crd

The #ank has %nno&ated the /n%B/e al%nga %ssan 8old Card

scheme to recogn%Fe and reward the good rea!ment ha#%ts of

farmer mem#ers of PACS. A ackage of fac%l%t%es %ncl/d%ng less

%nterest on a ll t !es of loans5 free acc%dent %ns/rance of

Rs.2'.5 ann/al lotter!5 eos/re &%s%ts5 freedom to /rchase

fert% l%Fer and est %c%des from an! reta% l o/tlet and schemat%c

lend%ng on a r%or% t! #as%s. The 8o&t. of Or%ssa aro&ed the

scheme wh%ch was la/nched on 2*.".21.

The scheme has el%c%ted tremendo/s resonse from the farm%ng

comm/n% t%es. +! 31.3.225 22513 farmer mem#ers were

ro&%ded w%th the card.

Pro9ress of t<e %riss $tte Coo:ertive /n8 over 52 ers t

9nce

er 4"5# 5#51 5152 5253 5354 5455

Share Ca%tal 3.'3 ".* '. '.2" '.2 '.'3

Reser&es .'' 1.2 1.'2 1.0* 2.30 2.01

Owned (/nd ". '.*2 *.'2 ,.2 ,.*, .""

-eos%t 12.32 1'.3 1'.", 10.'1 21., 32.,0

+orrow%ngs 2*.' 33.1 3". 2". 33. 33.00

6n&estments ".3 ".,1 '.21 . 11.' 11.0

Ad&ances 3'.*" "3.*2 ".2' "1.1' "*.,0 '0.20

Cost of anagement .2* .2 .3' .3, .30 ."2

Jork%ng Ca%tal *3.,0 ''."2 ',.1 '2.1* *".02 ,,.1

53



Net Prof%t 9K: ;oss 94: K.2 K.'3 K., K.,1 K.,* K.*

-%&%dend -eclared 9H: ".' ".' ".' ".' ".' ".'

er 5556 565 55! 5!5" 5"6# 6#61Share Ca%tal *. 0.2, 1".03 1.0 21.'* 23.21

Reser&es 2.' 3."1 ".'1 *.30 ,.,* 11.",

Owned (/nd .03 12."1 10."" 2'.2 20.32 3".*

-eos%t *2.0 1.*2 1'.1' 13*.*" 1*.0 1*"."'

+orrow%ngs "2.02 "3.' *".2' *,." ,'.1* 13.23

6n&estments 1'.0 2.22 2."' 3.'" ''.*2 *.1'

Ad&ances 1.*, *.3" 11,.' 1"*." 101.,* 2"".2

Cost of anagement .", .' .*" .,* .' .

Jork%ng Ca%tal 11."0 1*".0 2"." 2'.* 2".0, 3".,1

Net Prof%t 9K: ;oss 94: K1.' K2.1 K3. K3.,' K3.*, K3.03

-%&%dend -eclared 9H: '. * * * * *

er 6162 6263 6364 6465 6566 666

Share Ca%tal 2,.13 3,. "*."" '.10 '"."' '0."1

Reser&es 1".0 1'."1 1,.01 21., 2,.' ,0.1'

Owned (/nd "1.22 '3.20 *".3' ,2.* 2.' 0.'*

-eos%t 1**.* 20."* 21,.2' 21., 22.'* 2''.'

+orrow%ngs 1*.3, 2".*3 3**.'2 ",3.*, '21.'0 '3.3"

6n&estments 3.,* ,,.11 2.2" 02.1 11".*' 12*.3'

Ad&ances 313.2 "2'."3 '31." '".32 ,.*, ,1".,,

Cost of anagement .0* 1." 1.2 1."* 1.*0 1.02

Jork%ng Ca%tal "".2 '*2.0 *1., ,03.,0 02."' 0.*0

Net Prof%t 9K: ;oss 94: K".2 K'.," K,.2, K.31 K.0 K0.1

-%&%dend -eclared 9H: * * * * * *

54



er 66! 6!6" 6"# #1 12 23

Share Ca%tal ,1.2 ,'.2" ,0.2" ,0.*3 3.0" 0*.20

Reser&es '1.' 2.,1 121.0' 1"'.* 1*,.10 1,0.,2Owned (/nd 122., 1',.0' 21.10 22'.20 2'1.13 2,*.1

-eos%t 22.3" 3'."3 322.02 3"1.20 "0'.1* *3.'*

+orrow%ngs '*.,1 "*.* '".'3 13."* 1'2.23 33.""

6n&estments 130.,* 1,0.' 212.30 23. 2"1.23 2*.

Ad&ances ,.1 ,*.' *02.,3 '0.3, *2,.3 23.'3

Cost of anagement 2.2* 2." 2." 3.1, 3.0, "."'

Jork%ng Ca%tal 00.2 00*.1 0".,2 ,,.21 021.0 1230.2

Net Prof%t 9K: ;oss 94: K0. K0.0 K0.0 K1.* K1.0 K".00

-%&%dend -eclared 9H: * * * * * 3

er 34 45 56 6 ! !"

Share Ca%tal 00."' 1".3 123.02 1*.30 21,.3* 2,2.1

Reser&es 1"."3 10." 102."* 2".,, 220.3" 2*2.21

Owned (/nd 23.* 20'.23 31*.3 3*'.1* ""*., '"3.30

-eos%t *1.,1 ,00.'1 10.*2 '"*.3* 102.,* 232.3,

+orrow%ngs 3'.3 '".3 *"1.*' 1"*."2 1*2."0 222'.02

6n&estments 2*,.22 2*0.'0 31'.", '.", '1".2' ',1.*

Ad&ances .32 120,.20 1'". 2,,'.' 3132.* "2*2.,'

Cost of anagement '.1* *.' ., 1.*" 12.,, 22."

Jork%ng Ca%tal 13'0.3 1*1.,0 202.3 3",0 "230.3 '1,1.''

Net Prof%t 9K: ;oss 94: K'.*" K.* K0.'3 K22."" K3. K".3

-%&%dend -eclared9H: 2 N%l 3 ' ' *

55



er "!# !#!1 !1!2 !2!3 !3!4 !4!5

Share Ca%tal 3,." "",." "",.", *13. ,,.** ,3*.

Reser&es "11.3* *".33 2,."2 11''.* 1**.0 10*.'Owned (/nd ,2.2 1'1. 13"2.** 1,*.* 231".'* 2,".13

-eos%t 322. 3"03.13 3*.*1 33,*."1 20'.*" 31,,.,2

+orrow%ngs 3,,,."' '2*1. *12.0' 01,.* 1'3*.* 1'*.*'

6n&estments *.'* ,03.11 00. 0*."" 122".'1 1'2.'

Ad&ances *,*1.*3 '1.32 13',.0 13',."1 1'12.,2 1'11'.02

Cost of anagement 21.2* 2,.*, 30.1 "1.'2 "0."" 02.13

Jork%ng Ca%tal ,,0.,0 113".*, 11,30.* 1'110.* 1*,*2.3, 1,*2.'2

Net Prof%t 9K: ;oss 94: K''.1* K,0.'1 K01.'1 K0,."0 K2. K'*.11-%&%dend -eclared9H: *.' *.' *.' *.' ' 3

er !5!6 !6! !!! !!!" !""# "#"1

Share Ca%tal ,"3.10 ,".3 ,*3.0 ,,'.0 ,0.0 2*.2

Reser&es 212*.'0 222*.1" 2"33."2 2"0*.' 2,'2.3' 20*.*

Owned (/nd 2*0.,0 2,"."" 310,.31 32,2.'* 3'"2.30 312.,

-eos%t 2010.23 "13.23 "32*."3 "*. "*'3.1" "0,1.2"

+orrow%ngs 1"1.3, 012.02 1'".33 12111.11 1"211. 12'1.1,

6n&estments 1'*1.00 1"'.* 1,11. 1031.13 21'*.13 2,20.3

Ad&ances 1"'22., 1"102.3* 1'001.0 1,'10.3* 10"3".,* 12"**.2'

Cost of anagement 0,.32 ,.'2 111.3, 13., 11*.*' 1*'.*

Jork%ng Ca%tal 1,123."" 1,2*1.2, 10'1,.01 21'*".0 2"1.*" 22*2.,*

Net Prof%t 9K: ;oss 94: K"0.' K'.31 K',.12 K',.2 K*."3 K".22

-%&%dend -eclared9H: 3 3 3 3 3.' 3

56



er "1"2 "2"3 "3"4 "4"5 "5"6 "6"

Share Ca%tal 20.30 "1.3 ".* '".13 13,.'' 11.3'

Reser&es 311".12 3122.*, 3,*2." "10.1 "'1,.,' ",11.Owned (/nd 30"3.'1 30*3., "*11.1* '"1.1" ''''.3 '00.3'

-eos%t ,3'*." 31.22 00'.1* 1231".1

1*3'"."

23,.3"

+orrow%ngs 11,,.,"

1*".

113'1.21

1*"'.*

102"'.,

2"121.30

6n&estments 3''".01 30".*1 '""*.0" *0"1." 11,".*"

13'31.'*

Ad&ances 1'23.3

3

1*'"".

*

1000.'

,

2*2"*.'

3030."

3

""22.1

Cost of anagement 10.32 2,,12 20,.2' 3"2.,0 "*2.2 '01.33

Jork%ng Ca%tal 2'2".'

2'03.,*

2"."

3*203.2

""'0."*

',,*.21

Net Prof%t 9K: ;oss 94: K,'.* K'., K,'.1' K03.3* 11.' 1.'2

-%&%dend -eclared 9H: 3.' 3 3 3 ' ,

er ""! "!"" ""## ###1 #1#2

Share Ca%tal 102'.'3 2"''.1, 2*".3, 311.' 3,'2.2

Reser&es ','2.'2 ,02.22 03".0 0*2.3 1*"."

Owned (/nd ,*,.' 0'",.30 11','.2, 12*3. 1 "*1,.12

-eos%t 33'*0.', "1,.3, '**. ,312*.'0 ,"2.1

+orrow%ngs 3'',.* 3,*".0* "*12".2* ""100."* '2200.'

6n&estments 13'".' 22,.,* 200.0 "31,.'" '0"*.*1

Ad&ances '30,0.*' *"0'2.* '3.* 311'.2 0103.,*

Cost of anagement *,.'" ,2.' ,1." 0'*.03 1"'.13

Jork%ng Ca%tal 1'".3* 03*'2.2 230*.1' 13**1.'2 1**00*.*

Net Prof%t 9K: ;oss 94: 2.*2 30*.03 '2'.,3 *"0.2" ,"0.'3

-%&%dend -eclared 9H: 0 0 0 0 1

57



ANNA; 8ENERA; +O-< EET6N8

Esteemed $<re<oders

6 welcome !o/ all to the '"th Ann/al 8eneral +ode! meet%ng of

the #ank and take th%s oort/n%t! to lace #efore !o/ the a/d%ted

f%nanc%al statements5 Ann/al Reort of the #ank for the !ear 214225

the #/dget and work rogramme of the #anl for the !ear 2342" for

!o/r k%nd cons%derat%on and aro&al.

<e Economic $cenrio

The econom%c s/r&e! of the co/ntr! resented a growth of the 8ross

-omest%c Prod/ct 98-P of '.* ercent d/r%ng the !ear /nder reort as

aga%nst eectat%ons and ass/mt%ons of *.' ercent. The growth of

agr%c/lt/re and all%ed act%&%t%es as a art of the 8-P rose s/#stant%all!

#! '.0 ercent as aga%nst negat%&e growth rate at '." ercent d/r%ng the

!ear 241. -/r%ng the so/th4west monsoon season of 215 3

meteorolog%cal S/#4-%&%s%ons rece%&ed ecessGnormal ra%nfall %nd%cat%ng

#etter sat%o4temoral d%str%#/t%on of ra%nfall. The north4east monsoon

also t/rned o/t to #e #etter d/r%ng 21425 wh%ch #oosted the food

gra%n rod/ct %on to 212 m%l l%on tones as aga%nst re&%o/s !earIs

rod/ct%on of 100.' m%l l %on tones. )owe&er5 the %nd/str%al sector has

grown at a lower rate of 3.3 ercent %n 2142 as aga%nst *.2 ercent

%n 241. The %nd/str%al slowdown ermeated all const%t/ent s/#4

sectors5 art%c/larl! the man/fact/r%ng sector5 wh%ch decelerated to 3.3

ercent %n 2142 from *., ercent %n 241. The ser&%ces sector5 on

the other hand5 recorded a h%gher growth at *.2 ercent %n 2142 from

' ercent %n 2415 tho/gh the ace rema%ned slow %n relat%on to a

growth of 0." ercent atta%ned %n 100042.

6n the redom%nantl! #ank #ased f%nanc%al sta#%l % t! has cont%n/ed to

ass/me tremendo/s %mortance d/r%ng the !ear /nder reort. Jhereas5

%n the %nternat%onal arena the #ank%ng oerat%ons ha&e #een /ndergo%ng

58



drast%c metamorhos%s5 f%nanc%al sta#%l%t! has come to the center stage

for the lanners and ol%c! makers. The monetar! and cred%t ol%c!

anno/nced #! the Reser&e +ank of 6nd%a d/r%ng the !ear /nder reort5

a%med at %ncreas%ng oerat%onal effect%&eness5 redef%n%ng the reg/lator!

role of the R+65 strengthen%ng r/dent%al and s/er&%sor! norms and

%mro&%ng the cred% t del %&er! s!stem. 6n order to accord greater

f le%#%l %t! to cooerat %&e #anks and to ena#le them to attract good

#orrowers %n a comet%t %&e en&%ronment5 the st%/lat%on of m%n%m/m

lend%ng rates for all cooerat%&e #anks was w%thdrawn #! the ae #ank

of the co/ntr!. The cooerat%&e #anks also ha&e #een asked to /#l%sh

m%n%m/m and ma%m/m lend%ng rates charged for the %nformat%on of

the%r c/stomers. The /n%on +/dget anno/nced on 2 th (e#r/ar!5 22

ro&%ded a token contr%#/t%on of Rs. 1 crore for %mlementat%on of

re&%tal%Fat%on ackage recommended #! the Cator Comm%ttee. Another

h%gh le&el Comm%ttee was ao%nted /nder the Cha%rmansh% of n%on

%n%ster of State for (%nance #! the n%on 8o&ernment to worko/t the

modal%t%es to %mlement the ackage #! e&ol&%ng consens/s among the

States.

The ma$or %ss/es on the d/al%t!Gm/lt%l%c%t! of control of the cooerat%&ecred%t %nst%t/t%ons cont%n/ed to come %n the wa! of effect%&e reg/lat%on

and s/er&%s%on of cooerat%&e #anks. The recommendat%ons of the

Cator Comm%ttee on th%s s/#$ect co/ld not #e %mlemented d/r%ng the

!ear. 6n th%s contet5 a draft #%ll s/#m%tted #! Reser&e +ank of 6nd%a to

resol&e the %ss/e thro/gh amendment of the +ank%ng Reg/lat%on Act5

10"0 rather than amendment of resect%&e State Cooerat%&e Soc%et%es

Acts was referred to the h%gh le&e l Comm% ttee.

As on arch 315 225 0, Commerc%al +anks5 10* Reg%onal R/ra l

+anks5 '2 r#an Cooerat%&e +anks and 1* state Cooerat%&e +anks

were oerat%ng %n 6nd%a as Sched/led +anks. The growth of aggregate

deos%ts of the sched/led Commerc%al +anks decelerated from 1."

ercent d/r%ng 241 to 1".* ercent d/r%ng the !ear /nder reort.

59



S%m%larl!5 the growth %n cred%t etended #! them has also recorded a

decl%n%ng trend from 1,.3 ercent to 1"." ercent. The ann/al monetar!

and cred%t ol%c! statements and the m%d term re&%ews #! the Reser&e

+ank of 6nd%a cont %n/ed to foc/s on the str/ct/ral and reg/lator!

meas/res needed to strengthen the f%nanc%al s!stem and %mro&e the

f/nct%on%ng of &ar%o/s segments of the f%nanc%al market. The #ank rate

was red/ced to *.' ercent w%th effect from Octo#er 205 22 and the

CRR rate was also #ro/ght down to ".,' ercent w%th the %nf lat%on

conta%ned at s %ngle d%g%t . The 6nd%an #ank%ng sector as a whole5

%ncl/d%ng the cooerat%&e #anks5 resonded to the emerg%ng challenges

and #ro/ght a#o/t ercet%#le %mro&ement %n c/stomer ser&%ce #!

%nno&at%ng new rod/cts and adot%ng %nformat%on technolog!. )owe&er5

d/r to non4%mlementat%on of the recommendat%ons of the Task (orce

ao%nted /nder the Cha%rmansh% of @agad%sh Caoor5 the then -e/t!

8o&ernor of Reser&e +ank of 6nd%a5 the d%f f%c/lt %es faced #! the

cooerat%&e #anks cont%n/ed d/r%ng the !ear /nder reort. 1" o/t of

3*, -%str%ct Central Cooerat%&e +anks ha&e fa%led to coml! w%th the

Sect%on 1191 of the +ank%ng Reg/lat%on Act5 10"0. S%m%larl!5 0 o/t of 3

State Cooerat%&e +anks also cont%n/ed to rema%n Sect%on 11 non4

coml%ant. The Reser&e +ank of 6nd%a and NA+AR- etended the one

t%me Settlement scheme to the cooerat%&e #anks to arrest the growth of

non4rod/ct%&e assets.

%ur Ac<ievements

<o/r #ank has cont%n/ed to take on the comet%t %on s/ccessf/ll! %n

s%te of slow down %n the o&erall erformances of the State Cooerat%&e

+anks of the co/ntr!. The deos%ts of the #ank %ncreased f rom

Rs.,31.2, crore to Rs.,".2 crore #! record%ng a health! growth rate

of 2 ercent as aga%nst 1.2 ercent of all State Cooerat%&e +anks.

)owe&er5 the o/tstand%ng loans and ad&ances recorded a growth of

onl! 1 ercent as aga%nst the all 6nd%a a&erage of 0.' ercent ma%nl!

d/e to the d%ff%c/lt%es eer%enced #! the Sect%on 11 non4coml%ant

60



-CC+s to ens/re smooth f low of cred%t mostl! on acco/nt of non4

reco&er! of loans. The work%ng ca%tal of the #ank %ncreased from

Rs.13*.*2 crore to Rs.1*,".', crore record%ng a growth of 21 ercent

o&er the last !ear. The aggregate reco&er! of loasn of the #ank has

decelerated from * ercent d/r%ng the !ear 241 to 2." ercent

d/r%ng the !ear /nder reor t large l! d/e to hea&! de fa/ lt #!

+hawan%atna5 +olang%r5 +o/dh and n%ted P/r%4N%maara Central

Cooerat%&e +ank. )owe&er5 !o/r #ank has earned a net rof% t of

Rs.,"0.'3 lakh after mak%ng adeB/ate ro&%s%on aga%nst non4rod/ct%&e

assets as er the g/%del%nes of the Reser&e +ank of 6nd%a. The d%&%dend

for the !ear /nder reort %s roosed at 1 ercent for aro&al of the

8eneral +od!. The er #ranch and er emlo!ee #/s%ness of the #ank

has scaled to new he%ghts at Rs. 20,.*3 crore and Rs. ,. crore

resect%&el!5 wh%ch %s one of the h%gest %n the 6nd%an #ank%ng %nd/str!.

Im:ementtion of 0isn Credit Crd $c<eme

<o/r #ank has cont%n/ed %ts efforts to strengthen and sta#%l % t %es the

%san cred%t card scheme %n tandem w%th the %mortance attached to the

scheme #! the /n%on go&ernment. 6n add%t%on to etend%ng %ts reach to

all el%g%#le farmer mem#ers5 emhas%s was la%d on the oerat %onal%ntr%cac%es of the scheme to emower the target gro/. The c/m/lat%&e

%ss/e of cards has crossed the mark of 1 lakh and reached the le&el of

1152050," #! 31.3.22 as aga%nst the target f%ed for %ss/e of 1.'

lakh cards. J%th streaml%n%ng of the oerat%on of the %san Cred%t Card

scheme5 !o/r #ank has s/cceeded %n d%s#/rs%ng record amo/nt of cro

loan d/r%ng the !ear /nder reort amo/nt%ng to Rs.313 crore %n har%ff

and Rs.22" crore %n Ra#% aggregat%ng to Rs.'3, crore. There has also

#een a henomenal %ncrease %n the er ca%ta d%s#/rsement of cro

loan from Rs.132G4 %n 1001402 to Rs.,5'G4 d/r%ng the !ear /nder

reort.

61



0in9 0issn -od Crd

The /n%B/e and %nno&at%&e al%nga %ssan 8old Card scheme la/nched

on 2*.".21 to recogn%Fe and reward good rea!ment ha#%ts of the

%ssan Cred%t Card holders to create a cond/c%&e reco&er! cl%mate %n

the State el%c%ted tremendo/s resonse from the cross sect%on of the

comm/n%t! and the same has #een h%ghl! accla%med #! Reser&e +ank

of 6nd%a5 NA+AR-5 NA(SCO+ and other State Cooeat%&e +anks. The

w%de range of fac%l%t%es a&a%la#le /nder the scheme are 1 ercent less

%nterest %n all t!es of loans5 free acc%dent %ns/rance co&erage of

Rs.2'5G4 cons/mt%on loan / to Rs.'5G4 mem#ersh% of the

al%nga %ssan 8old Card Cl/#5 art%c%at%on %n ann/al lotter! carr!%ng 3

r%Fes amo/nt%ng to Rs.'5G4 Rs.35G4 and Rs.25G4 freedom

to /rchase fert%l%Fer and est%c%des from an! reta%l o/tlet of the%r cho%ce

and a&a%la#%l%t! of schemat%c loans on a r%or%t! #as%s. +! 31.3.225

22*3 cards were d%str%#/ted to el%g%#le farmer mem#ers and aro/nd

1 cardholders were taken to the farms of OAT and the CRR65

C/ttack on st/d! &%s%t to ena#le them to learn ad&anced technolog! %n

agr%c/lt/re for wh%ch5 !o/r #ank has ro&%ded ass%stance to the -CC+s

Rs.15G4 each. J%th%n one !ear of % ts la/nch%ng5 the schemestarted !%ld%ng des%red res/lts #! %mro&%ng the reco&er! os%t %on at

PACS le&el from "* ercent %n 241 to '* ercent %n 2142.

Informtion ec<noo9y

<o/r #ank %s the f %rst State Cooerat%&e +ank of the co/ntr! to

com/ter%Fe the oerat%ons of %ts head off%ce and the reta%l o/tlets to

ro&%de modern #ank%ng fac%l % t %es at ar w%th r%&ate and commerc%al

#anks. ATs ha&e #een %nstalled %n select +ranches and Etens%onCo/nters to ro&%de an!t %me #ank%ng to the c/stomers. 6n order to

ro&%de f le%#le #ank%ng ho/rs to the general /#l %c5 the #ank has

etended %ts #ank%ng ser&%ce /to ,.3 P %n Sah%dnagar and C/ttack

#ranches5 arketed Etens%on Co/nter and -A Etens%on Co/nter.

+es%des5 as a art of % ts de&elomental %n%t %at%&e to consol%date the

62



Short Term Cooerat%&e Cred%t str/ct/re to coe w%th the emerg%ng

challenges conseB/ent /on f%nanc%al sector reforms5 !o/r #ank has

taken stes to com/ter%se the head off %ce and #ranches of the

aff% l %ated -%str%ct Central Cooerat%&e +anks 9-CC+s. A total #ank

a/tomat%on software ent%t led =Sama#a!a> has +en de&eloed #! the

#ank for the /rose #! engag%ng CC ;td. olkata at a cost of Rs."*

lakh and the same has #en ro&%ded to the -CC+s free of cost. After %ts

s/ccessf/l %mlementat%on %n +ank% CC+ on a %lot #as%s5 the software

has #een ro&%ded to other -CC+S for %mlementat%on w%th techn%cal

ass%stance #! a core team const%t/ted at OSC+ le&el. 6t %s eected that

the head off %ce and ma%n #ranches of all the -CC+s w% ll #e f/l l!

com/ter%Fed #! 31.12.23.

resury Mn9ement Ce

<o/r #ank has esta#l%shed a Treas/r! anagement Cell 9TC d/r%ng

a! 21 w%th the o#$ect%&e of delo!ment of %ts s/rl/s reso/rces %n

rof%ta#le a&en/es and trad%ng %n 8o&ernment and other sec/r%t%es %n

the mone! market. The #ank has %nstalled Re/ters +/s%ness watch

fac%l %t! to get onl %ne data f rom the sec/r%t! market. The TC %s

manag%ng a ortfol%o of Rs. '0' crore5 wh%ch %s S/#$ects to &ar%at%on ona da!4to4da! #as%s. The ortfol%o %ncl/des S;R %n&estment of Rs. 2*2

crore and non4S;R %n&estment of Rs. 333 crores. The TC has made a

trad%ng rof%t of Rs. 0.' crore d/r%ng the !ear 2142. 6n the era of

f %n%cal l %#eral%Fat%on and conseB/ent fal l %n %nterest rates5 the 84Sec

market holds the ke!s for rof%ta#le %n the #anks. The OSC+ a%ms at

%ncreas%ng %n&estment %n th%s ortfol%o to delo! all %ts s/rl/s reso/rces

%n rof%ta#le a&en/es.

Eceence Reco9niDed

6n recogn%t%on of the o/tstand%ng erformances for !o/r #ank all growth

arameters5 the Nat%onal +ank for Agr%c/lt/re and R/ral -e&eloment

awarded the #ank w%th the #est erformance award5 wh%ch was handed

o&er #! the then )onI#le n%on %n%ster of (%nance5 Sr% <ashwant S%nha

63



on 12 th @/l!5 21. #e%s%des5 the Nat %onal (ederat %on of State

cooerat%&e +anks has awarded the #ank of o/treach %n mo#%l%Fat%on of

reso/rces.

Are of Concern

6n s%te of s/#stant%al %mro&ement of reco&er! at grass roots le&el

conseB/ent /on %mlementat%on of al%nga %ssan 8old Card scheme5

low reco&er! of loans and non ass%ng on of reco&er%es to the h%gher

t %ers cont %n/ed to affect the f %nanc%al erformance of most of the

-CC+s5 wh%ch cont%n/ed to ha&e a d%rect #ear%ng on the erformances

of !o/r #ank. Altho/gh d/r%ng the !ear /nder reort5 " o/t of 12 Sect%on

11 non comla%nt -CC+s %mro&ed the%r erformances and coml%ed

w%th the stat/tor! reB/%rements5 eemt%on for the rema%n%ng #anks

co/ld not #e a&a%la#le from the 8o&ernment of 6nd%a for wh%ch5 !o/r

#ank faced d%f f%c/lt %es to arrange f/nds to s/ort the%r lend%ng

act%&%t%es. The aggregate defa/lt towards r%nc%al and %nterest of the 12

-CC+s amo/nted to Rs.01.2 crore as on 31.3.22 of wh%ch5 the

defa/lt of +hawan%atna5 +olang%r and n%ted P/r%4N%maara -CC+s

amo/nted to Rs.01.2 crore as on 31.3.22 of wh%ch5 the defa/lt of

+hawan%atna5 +olang%r% and n%ted P/r%4N%maara CC+s were atRs.1*."2 crore5 Rs.1*.* crore and Rs.3'.*3 crore resect %&el!.

Jhereas cont%n/o/s ag%tat%onal rogramme of the cadre emlo!ees %n

Na!agarh and n%ted P/r%4N%maara CC+s ad&ersel! affected the%r

erformance5 %n +hawan%atna CC+5 lack of adeB/ate s/er&%s%on and

mon%tor%ng was cons%dered to the #e reasons for s/ch ser%o/s f%nanc%al

cr%s%s. The handloom sector cont%n/ed to s/f fer d/e to gross

m%smanagement of affa%rs of the )andloom Jea&ers Cooerat%&e

Soc%et%es. The aggregate cred%t l%m%ts sanct%oned #! NA+AR- %n fa&o/r

of -CC+s for f%nanc%ng )andloom Jea&ers Cooerat%&e Soc%et%es ha&e

#een drast%call! red/ced from Rs. *'.2 crore d/r%ng 100042 to

Rs.21.32 crore %n 2421 and Rs. 2'.1 crore for the !ear /nder

reort largel! d/e to the%r oerat%onal def%c%enc%es. +es%des d/e to non4

64



sanct%on of ref%nance ass%stance #! NA+AR- %n fa&o/r of Or%ssa State

)andloom Jea&ers Cooerat%&e Soc%et! 9+o!an%ka5 the #ank had to

%n&ol&e % ts own f/nds to the t/ne of Rs. 13. crore. Altho/gh the

8o&ernment o f Or%ssa had ro&%ded g/arantee to NA+AR- for

rea!ment of the d/es5 w%tho/t %n&ok%ng the same5 !o/r #ank has

%n&ol&ed Rs.'3 crore from %ts own reso/rces.

6t %s an acknowledged fact that after %ntrod/ct%on of %san Cred%t Card

scheme5 the Commerc%al +anks and the Reg%onal R/ral +anks ha&e

#een enter%ng %nto the arena of agr%c/lt/re f%nanc%ng %n a #%g wa!. The

res/ltant effect %s ercet%#le from the%r share %n d%sensat%on of cro

loan d/r%ng last 3 !ears. Jhereas at All 6nd%a le&el5 the%r share has

#een %ncreased from "' ercent to " ercent5 %n o/r State5 the same

has #een %ncreased from 2 ercent to 31 ercent. nless the PACS

and -CC+s %mro&e the%r erformances %n d%sens%ng farm cred%t5 % t

wo/ld #e d%ff%c/lt to sto the rogress of Commerc%al +anks5 who ha&e

#een a/gment%ng the%r efforts to enetrate %nto the r/ral areas. <o/r

#ank has %ntrod/ced the al%nga %ssan 8old Card scheme w%th the

ma$or o#$ect%&e of %mro&%ng the reco&er! os%t %on of the short term

cooerat%&e cred%t str/ct/re. 6 wo/ld %mress /on all concern to takead&antage of the %n4#/%lt fac%l%t%es of the scheme to #/%ld / a lo!al and

d%sc%l%ned cl%entele #ase to take on the comet%t%on and %mro&e the

o&erall erformance.

+eders<i: Initites

J%th the o#$ect%&e of consol%dat%ng the short term cooerat%&e cred%t

str/ct/re of the state to coe w%th the emerg%ng challenges5 !o/r #ank

has taken a n/m#er of %n% t%at %&es d/r%ng the !ear /nder reort. 6nadd%t %on to the %n%t %at%&es taken for com/ter%Fat%on of the -CC+s to

strengthen the anagement %nformat%on s!stem and to ro&%de effect%&e

and eff%c%ent c/stomer ser&%ce5 OSC+ has cont%n/o/sl! mon%tored the

erformances of the -CC+s and PACS thro/gh monthl! re&%ew meet%ng

at state le&el and ens/red %mlementat %on of &ar %o/s lans and

65



rogrammes #! d%rect s/er&%s%on. 6mlementat%on of -e&eloment

Act%on Plans was reg/larl! mon% tored and sec %f %c stes were taken for

%mro&%ng the erformance of the sect%on 11 non4coml%ant #anks. J%th

the s%ncere efforts and t %mel! g/%dance of !o/r +ank5 " o/t of 12

Sect%on 11 non4comla%nt Central Cooerat%&e +anks #ro/ght a#o/t a

t/rn aro/nd %n the%r o&erall erformances #! mak%ng the%r net worth

os%t%&e to coml! w%th the stat/tor! reB/%rements.

<o/r #ank has also %ntrod/ced a s!stem of monthl! rat%ng of the -CC+s

on the #as%s of the%r erformances on &ar%o/s arameters and %nst%t/ted

3 r%Fes for the #est erform%ng #anks to %nc/lcate a comet%t%&e s%r%t

among them. The emlo!ees of the -CC+s and the PACS were also

rewarded thro/gh an %ncent%&e ackage on the #as%s of erformance on

deos%t mo#%l %Fat %on and reco&er!. The s!stem of ro&%d%ng l %#eral

grants to the -CC+s cont%n/ed th%s l %#eral grants to the -CC+s

cont%n/ed th%s !ear /nder wh%ch5 Rs. 1 lakh each was ro&%ded to the

-CC+s for facel% ft of the%r #est erform%ng #ranch on the #as%s of

deos%t mo#%l %Fat%on. <o/r #ank has also cont%n/es to re%m#/rse the

salar! of the Ch%ef Eec/t%&es of the -CC+s to ease the%r f %nanc%al

#/rden. Al l these de&eloment %n %t %a t%&es were d% rected towards consol%dat %on of

the short term cooerat%&e cred%t str/ct/re of the state to coe w%th the

chang%ng en&%ronment after %ntrod/ct%on of the f%nanc%al sector reforms.

6 wo/ld reB/est all concerned to take ad&antage of the l%#eral f%nanc%al

ass %s tance and s/ort ro&%ded #! the #ank to s trength the %r

erformances and to atta%n s/sta%na#le &%a#%l%t! at the earl%est.

,umn Resources 'eveo:ment<o/r #ank has g%&en to r%or%t! to the de&eloment of h/man reso/rces

of %ts own and the aff%l %ated -CC+s. The emlo!ees of the #ank were

sent to &ar%o/s nat%onal le&el tra%n%ng %nst%t/t%ons to acB/%re eert%se on

&ar%o/s areas of #ank%ng technolog!. )R- tra%n%ng rogrammes were

arranged for all the off%cers of the #ank w%th the hel of N6S Sarta to

66



g%&e them an %ns%ght %nto the%r attern of #eha&%o/r and the need to for

adat%ng themsel&es to the chang%ng c%rc/mstances.

The Agr %c/l t/ra l Cooerat%&e s taff Tra %n %ng 6nst% t/ te has #een

strengthened w% th adeB/ate t ra%ned fac/l t! and latest t ra %n%ng

eB/%ments to ro&%de need #ased tra%n%ng to the ersonnel to %mro&e

the% r knowledge5 sk% ll and att% t/de to coe w% th the chang%ng

reB/%rement of the #ank%ng %nd/str!. Need #ased s%m%lar and workshos

on #/rn%ng to%cs and new schemes were cond/cted #! the #ank at %ts

head off %ce and at the -CC+ le&el to / date the knowledge of the

emlo!ees. Now tra%n%ng rogrammes l%ke =arket%ng of +ank Ser&%ces>

and =Organ%Fat%onal -e&eloment Strateg%es> were %ntrod/ced #! the

%nst%t/te d/r%ng the !ear /nder reort. The ho/se $o/rnal of the #ank

=Samark> cont%n/ed to carr! to%cal %ss/es on trends and rogress %n

#ank%ng and %t also ro&%ded a for/m to the emlo!ees to share the%r

&%ews and eer%ence.

Cor:orte vision

<o/r #ank has #een work%ng on a cororate &%s%on lan for the !ear

21 kee%ng %n & %ew the de&eloment %n the #ank%ng %nd/str!

conseB/ent /on the f%nca%al sector reforms %ntrod/ct%on %n the co/ntr!.

The lan shall5 %nterla%d5 %ncl/de organ%Fat%onal5 s!stem%c5 f %nanc%al5

manager%al and ersonnel reeng%neer%ng and restr/ct/r%ng of the #ank

and the aff %l %ated short term cooerat %&e cred%t str/ct/re w%th the

o#$ect %&e of strengthen%ng the agrar%an econom! of the state. The

o#$ect%&e can #e f/lf%l led onl! #! strengthen%ng the PACS #! con&ert%ng

them as rof% t centers and mem#er dr%&en organ%Fat%ons caa#le

eno/gh to cater to the ent%re cred%t reB/%rement of the%r mem#ers.<o/ are all aware that the n%on (%nance %n%ster5 %n h%s #/dget seech

on 2.2.23 has %nd%cated to allow r%&ate sector #anks to enter %nto

the shere of agr%c/lt/ral f%nanc%ng #! oen%ng #ranches %n r/ral areas.

6n the ast5 the cooerat%&e #anks ha&e s/ccessf/ll! w%thstood the

onsla/ght of the m/lt%4agenc! aroach %n d%sensat%on of farm cred%t

67



and w%thdrawal of State atronage. ;et /s accet the new challenge to

take on the r%&ate #anks along w%th the commerc%al #anks and the

RR+s #! re&am%ng o/r f/nct%on%ng and com%ng close to o/r largest

cl%entele5 the farm%ng comm/n%t!.

6 eress m! s%ncere grat%t/de to all of !o/ g%&%ng me a at%ent hear%ng.

6 also take th%s oort/n%t! to etend m! heartfelt thanks to o/r &al/ed

c/stomers5 the 8o&ernment of 6nd%a5 the state 8o&ernment5 the Reser&e

+ank of 6nd%a5 NA+AR- and the NA(SCO+ for g/%d%ng /s and ro&%d%ng

/ngr/dg%ng s/ort %n all o/r endea&or for f/rtherance of the

cooerat%&e cred%t mo&ement %n the state. 6 shall #e fa%l%ng %n m! d/t!5 %f

6 do not eress m! s%ncere arec%at%on for the ded%cated ser&%ce and

comm%tment of the staff of th%s #ank.

68



69



JE;COE TO T)E JOR;- O( (6NANCE

A$ 7E RACE %7AR'$ ,E 21 $ CE*&R 7E$ *E7 ,%PE$

and new eectat%ons5 %t %s %merat%&e that we arec%ate the world

aro/nd /s %s chang%ng ra%dl! throw%ng /on great chal lenge and

en/mera#le oort/n%t!. -r%&en #! the %nformat%on technolog! we are

w%tness%ng henomenal changes %n the world of f %nance. 6n the

emerg%ng scenar%o f%nance rofess%onals w%ll #e oerat%ng %n a totall!

f%nanc%al landscae.

C%RP%RAE FI*A*CE %s chang%ng from domest%c f/nd%ng to m/lt%4

c/rrenc! f/nd%ng FI*A*CIA+ C%*R%+ %s chang%ng from s%mle

acco/nt%ng to %n tegrated control s!stem #ased on E*ERPRI$E

RE$%&RCE P+A**I*- (ERP) I*ER*AI%*A+ FI*A*CE %s

dom%nated #! &%rt/al f/nds at the d%sosal of street L smart 4fore

dealers who mo&e #%l l%ons of da% l! across the glo#al w% th the

etens%&e /se of 6T . I*.E$ME* MA*A-EME* %s sh%ft %ng from

s%mle eB/%t! or de#t rod/cts to comle der%&at%&e rod/cts l %ke

ot%ons5 f/t/re and swas. FI*A*CIA+ $E.ICE$ l %ke #ank%ng and%ns/rance are gett%ng glo#al%Fed %n a seamless d%g%tal world.

These f ro4reach%ng de&eloments %n the world of f %nance ha&e

redef%ned the role of the f%nance manager5 lac%ng a rem%/m on well

tra%ned !o/ng men and women rocess%ng s/er%or rofess%onal sk%ll %n

f%nance anal!s%s on management. The f%nance manager of toda! %s

called /on to f%nance strateg %es that do&eta %l w% th the f %rmIs

comet%t%&e #/s%ness strateg%es.

70



MEA*I*- %F 7%R0I*- CAPIA+

Ca%tal reB/%red for a #/s%ness can #e class%f%ed /nder two ma%n

categor%es:

9% (%ed Ca%tal and

9%% Jork%ng Ca%tal

E&er! #/s%ness needs f/nds for two /roses for %ts esta#l%shment and

to carr! o/t %ts da!4to4da! oerat%ons long4term f/nds are reB/%red to

create rod/ct%on fac%l % t %es thro/gh /rchase of f %ed assets s/ch as

lat and mach%ner! land #/%ld%ng f/rn%t/re etc. 6n&estments %n these

assets reresent that art of f %rmIs ca%tal5 wh%ch %s #locked on a

ermanent or f %ed #as%s and %s called f %eld ca%tal. (/nds are also

needed for short4term /roses for the /rchase of raw mater%als

a!ment of wages and other da!4to4da! eenses5 etc.

6n the words of Sh/#%n = Jork%ng ca%tal %s the amo/nt of f/nds

necessar! to co&er the cost of oerat%ng the enterr %se>

Accord%ng to 8enesten#erg5 = C% rc/lat%ng ca% ta l means c/rrent asssets

of a coman! that are changed %n the ord%nar! co/rse of #/s%ness from

on e form to another as for eamle f rom cash to %n&entor%es5

%n&entor%es to rece%&a#le rece%&a#les %nto cash.>

+eves of 7or8in9 C:it Investment

6n a =erfect> world there wo/ld #e no necess%t! for work%ng ca%tal

assets and l%a#%l%t%es. 6n s/ch a world there wo/ld #e no /ncerta%nt! no

transact%on costs %nformat%on search costs sched/l %ng costs or

rod/ct%on and technolog! constra%nts. The /n%t cost of rod/c%ng goods

wo/ld not &ar! w%th the amo/nt rod/ced. (%rms wo/ld #orrow and lend

at the same %nterest rate. Ca%tal la#o/r and rod/ct markets wo/ld

reflect all a&a%la#le %nformat%on and wo/ld #e erfectl! comet%t%&e. 6n

71



s/ch a world %t can #e shown that there wo/ld #e no ad&antage for f%rms

to %n&est or f%nance %n the short term.

+/t the world %n wh%ch rea l f %rms f/nct%on %s not erfect. 6t % s

character%Fed #! the f %rms cons%dera#le /ncerta%nt! regard%ng the

demand market r%ce B/al%t! and a&a%la#%l % t! of % ts own rod/cts and

those of s/l%ers. There are transact%on costs for /rchas%ng or sell%ng

goods or sec/r%t%es. 6nformat%on %s costl! to o#ta%n and the f%rm %s faced

w%th l%m%ts on the rod/ct%on caac%t! and technolog! that %t can emlo!.

There are f%ed as well &ar%a#le costs assoc%ated w%th rod/c%ng goods

for sale5 and there are sreads #etween the #orrow%ng and lend%ng

rates for %n&estments and f%nanc%ngs of eB/al r%sk. 6nformat%on %s not

eB/all! d%str%#/ted and ma! not #e f/l l! reflected %n the r%ces %n

rod/ct and la#or markets and these markets ma! not #e erfect l!

comet%t%&e.

These real world c%rc/mstances %ntrod/ce ro#lems w%th wh%ch the f%rm

m/st deal. Jh%le the f%rm has ma! strateg%es a&a%la#le to address these

c%rc/mstances strateg%es that /tl %l %se %n&estment or f %nanc%ng w%th

work%ng ca%tal acco/nts often offer a s/#stant%al ad&antage o&er other

techn%B/es. (or eamle ass/me that the f%rm %s faced w%th /ncerta%nl!regard%ng the le&el of % ts f/t/re cash flows and w%l l %nc/r s/#stant%al

cost %f %t has %ns/ff%c%ent cash to meet eenses. Se&eral strateg%es ma!

#e form/lated to address th%s /ncerta%nt! and the costs that % t ma!

engender. Among these strateg%es are some that %n&ol&e work%ng ca%tal

%n&estment or f %nanc%ng s/ch as hold%ng add%t%onal cash #alances

#e!ond eected needs hold%ng a reser&e of short term marketa#le

sec/r% t%es or arrang%ng for the a&a%la#%l %t! of add%t%onal short4term

#orrow%ng caac%t!. One of these strateg%es ma! well #e the least costl!

aroach to the ro#lem.

The s%Fe and nat/re of a f %rms %n&estment %n c/rrent assets %s a

f/nct%on of a n/m#er of d%fferent factors %ncl/d%ng the follow%ng:

1. The t!e of rod/cts man/fact/red.

72



2. The length of the oerat%ng c!cle.

3. The sales le&el 9#eca/se h%gher sales reB/%re more

%n&estment %n %n&entor%es and rece%&a#les.

". 6n&entor! ol%c %es 9 fo r eamle the amo/nt of safe t! s tocksma%nta%ned that %s %n&entor%es needed to meet h%gher than

eected demand or /nant%c%ated dela!s %n o#ta%n%ng new

%n&entor%es

'. Cred%t ol%c%es

*. )ow e ff%c%en tl! the f %rm manages c/rrent assets 9O#&%o/s l!

the more effect%&el! management econom%cs on the amo/nt

of cash marketa#le sec/r%t%es %n&entor%es and rece%&a#les

emlo!ed the smaller the work%ng ca%tal reB/%rements.

Cssifiction or 8inds of 7or8in9 C:it

Jork%ng ca%tal ma! #e class%f%ed %n two wa!s:

() %n t<e /sis of Conce:t

On the #as%s of concet work%ng ca%tal %s class%f %ed as gross

work%ng ca%tal and net work%ng ca%tal as d%sc/ssed earl %er. Th%s

class%f %cat %on %s %mortant f rom the o%nt of & %ew of the f %nanc%al

manager.

(;) %n t<e /sis of ime

On the #as%s of t%me work%ng ca%tal ma! #e class%f%ed as

1 Permnent or Fied 7or8 in9 C:it

Permanent or (%ed work%ng ca%tal %s the m%n%m/m amo/nt wh%ch

%s reB/%red to ens/re effect%&e /t%l%Fat%on of f%ed fac%l%t%es and for

ma%nta%n%ng the c%rc/lat%on of c/rrent assets. These %s alwa!s a

m%n%m/m le&el of c/rrent assets wh%ch %s cont%n/o/sl! reB/%red #!

the enterr%se to carr! o/t %ts normal #/s%ness oerat%ons. (or

eamle5 e&er! f %rm has to ma%nta%n a m%n%m/m le&el of raw

73



mater%als work4%n4rocess5 f%n%shed goods and cash #alance. Th%s

m%n%m/m le&el of c/rrent assets %s called ermanent or f %ed

work%ng ca%tal as th%s art of ca%tal %s ermanentl! #locked %n

c/rrent assets. As the #/s%ness grows5 the reB/%rements of

ermanent work%ng ca%tal also %ncrease d/e to the %ncrease %n

c/rrent assets. The ermanent work%ng ca%tal can f/rther #e

class%f%ed as reg/lar work%ng ca%tal and reser&e work%ng ca%tal

reB/%red to ens/re c%rc/lat%on of c/rrent assets from cash to

%n&entor%es5 from %n&entor%es to rece%&a#les and from rece%&a#les

to cash and so on reser&e work%ng ca%tal %s the ecess amo/nt

o&er the reB/%rement for reg/lar work%ng ca%tal wh%ch ma! #e

ro&%ded for cont%ngenc%es that ma! ar%se /nstated er%ods s/ch

as str%kes r%se %n r%ces5 deress%on5 etc.

2 em:orry or .ri;e 7or8in9 C:i t

Temorar! or &ar%a#le work%ng ca%tal %s the amo/nt of work%ng

ca%tal 5 wh%ch %s reB/%red to meet the seasonal demands and

some sec%al e%genc%es. ar%a#le work%ng ca%tal can #e f/rther

class%f%ed as seasonal work%ng ca%tal and sec%al work%ng

ca%tal. ost of the enterr%ses ha&e to ro&%de add%t%onal work%ngca%tal to meet the seasonal and sec%al needs. The ca%tal

reB/%red to meet the seasonal needs to the enterr%se %s called

seasonal work%ng ca%tal. Sec%al work%ng ca%tal %s that art of

work%ng ca%tal wh%ch %s reB/%red to meet sec%al e%genc%es s/ch

as la/nch%ng of etens%&e market%ng cama%gns for cond/ct%ng

research5 etc.

Temorar! work%ng ca%tal d%ffers from ermanent work%ng ca%tal%n the sense that % t %s reB/%red for sort er%od and cannot #e

ermanentl! emlo!ed ga%nf/ll! %n the #/s%ness. (%g/re g%&en

#elow %ll/strate the d%fference #etween ermanent and temorar!

work%ng ca%tal.

74



Permanent work%ng ca%tal %s sta#le or f%ed o&er t%me wh%le the

temorar! or &ar%a#le work%ng ca%tal f l/ct/ates. 6n (%g. 2

ermanent work%ng ca%tal %s also %ncreas%ng w%th the assage of

t %me d/e to eans%on of #/s%ness #/t e&en the % t does not

fl/ct/ates as &ar%a#le work%ng ca%tal wh%ch some t%me %ncreases

and somet%mes decreases.

Advnt9es of Adeute 7or8in9 C:it

Jork%ng ca%tal %s there l%fe#lood and ner&e center of a #/s%ness. @/st

as c%rc/lat%on of #lood %s essent%al %n the h/man #od! fort ma%nta%n%ng

l%fe5 work%ng ca%tal %s &er! essent%al to ma%nta%n the smooth r/nn%ng ofa #/s%ness. No #/s%ness can r/n s/ccessf/ll! w%tho/t an adeB/ate

amo/nt of work%ng ca%tal . The ma%n ad&antages of ma%nta%n%ng

adeB/ate amo/nt of work%ng ca%tal are as follows:

1 $ovency of t<e ;usiness

AdeB/ate work%ng ca% ta l hels %n ma%nta%n %ng so l&enc! of the

#/s%ness #! ro&%d%ng /n%nterr/ted flow of rod/ct%on.

2 -ood>i

S/ff%c%ent work%ng ca%tal ena#les a #/s%ness concern to make

romt a!ments and hence hels %n creat%ng and ma%nta%n%ng

goodw%ll.

3 Esy +ons

A concern ha&%ng adeB/ate work %ng ca%tal h%gh so l&enc! and

good cred%t stand%ng can arrange loans from #anks and others on

eas! and fa&ora#le terms.

4 Cs< discounts

AdeB/ate work %ng ca% ta l also ena# les a concern to a&a%l cash

d%sco/nts on the /rchases and hence %t red/ces costs.

5 Re9ur $u::y of R> Mteris

75



S/ff%c%ent work%ng ca%tal ens/res reg/lar s/l! of raw mater%al

and cont%n/o/s rod/ct%on.

*. Re9ur :yment of sries >9es nd ot<er dytody

commitments

A coman! wh%ch has amle work%ng ca% ta l can make reg/lar

a!ment of salar%es wages and other da!4to4da! comm%tments

wh%ch ra%ses the morale of % ts emlo!ees5 %ncreases the%r

eff%c%enc! red/ces wastages and costs and enhances rod/ct%on

and rof%ts.

E:oitt ion of fvor;e mr8et condi tions

Onl! concerns w%th adeB/ate work%ng ca%tal can elo%t fa&ora#le

market cond%t %ons s/ch as /rchas%ng %ts reB/%rements %n #/lk

when the r%ces are lower and #! hold%ng %ts %n&entor%es for h%gher

r%ces.

! A;iity to fce crises

AdeB/ate work %ng ca% ta l ena#les a concern to face #/s%ness

cr%ses %n emergenc%es s/ch as deress%on #eca/se d/r%ng s/ch

er%ods generall!5 there /s m/ch ress/re on work%ng ca%tal.

" Juic8 nd re9ur return on investments

E&er! 6n&es tor wants a B/ %ck and reg/lar ret/rn on h%s

%n&estments. S/ff%c%enc! of work%ng ca%tal ena#les a concern to

a! B/%ck and reg/lar d%&%dends to %ts %n&estors as there ma! not

#e m/ch ress/re to lo/gh #ack rof% ts . Th%s ga%ns the

conf%dence of %ts %n&estors and creates a fa&ora#le marke t to ra%se

add%t%onal f/nds %n the f/t/re

1. (or the /rchase of raw mater %als comonents and sares.

2. To a! wages and salar%es.

3. To %nc/r da!4to4da! eenses and o&erhead costs s/ch as f/el

ower and off%ce eenses5 etc

76



". To meet the sell %ng costs as ack%ng ad&ert%s%ng etc.

'. To ro&%de cred% t fac%l %t %es to the c/stomers.

*. To ma%nta %n the %n&entor%es of raw mater%a l work4 %n4rogress

stores and sares and f%n%shed stock.

FAC%R 'EERMI*I*- ,E 7%R0I*- CAPIA+

The work%ng ca%tal reB/%rements of a concern deend /on a large

n/m#er of factors s/ch as nat/re and s%Fe of #/s%ness the character of

the%r oerat %ons5 the length of rod/ct%on c!cles the rate of stock

t/rno&er and the state of econom%c s%t/at%on. 6t %s not oss%#le to rank

them #eca/se all s/ch factors are of d% fferent %mortance and the

%nfl/ence of %nd%&%d/al factors changes for a f%rm o&er t%me.

1 *ture of c<rcter of /usiness

The work%ng ca%tal reB/%rements of f%rm #as%call! deend /on

the nat/re of % ts #/s%ness. P/#l %c / t% l% t! /nder tak%ng l% ke

Electr%c%t!5 water s/l! and Ra%lwa!s need &er! l%m%ted work%ng

ca%tal #eca/se the! offer cash sales onl! and s/l! ser&%ces5

not rod/cts and s/ch as no f/nds are t%ed / %n %n&entor%es and

rece%&a#les.

2 $iDe of /usiness $ce of %:ertions

The work%ng ca%tal reB/%rements of a concern are d%rectl!

%nfl/enced #! the s%Fe of %ts #/s%ness wh%ch ma! #e meas/res %n

terms of scale of oerat%ons. 8reater the s%Fe of a #/s%ness /n%t

generall! larger w%ll #e the reB/%rements of work%ng ca%tal.

3 Production Poicy

6n certa%n %nd/str%es the demand %s s/#$ect to w%de f l/ct/at%ons

d/e to seasonal &ar%at%ons. The reB/%rements of work%ng ca%tal %n

s/ch cases deend /on the rod/ct%on ol%c!. The rod/ct%on

77



co/ld #e ket e%ther stead! #! acc/m/lat%ng %n&entor%es d/r%ng

slack er%ods w%th a &%ew to meet h%gh demand d/r%ng the eak

season or the rod/ct%on co/ld #e c/rta%l d/r%ng the slack season

and %ncreased d/r%ng the ack season.

4 Mnufcturin9 Process +en9t< of :roduction cyce

6n man/fact/r%ng #/s%ness the reB/%rements of work%ng ca%tal

%ncreases %n d%rect roort%on to length of man/fact/r%ng rocess

;onger the rocess er%od of man/fact/re larger %s the amo/nt of

work%ng ca%tal reB/%red.

5 $eson vritions

6n certa%n %nd/str%es raw mater%al %s not a&a%la#le thro/gho/t the

!ear. The! ha&e to #/! raw mater%als %n #/lk d/r%ng the seasons

to ens/re an /n%nterr/ted f low and rocess them d/r%ng the

ent%re !ear.

6 7or8in9 C:it Cyce

6n a man/fact/r%ng concern the work%ng ca%tal c!cle starts w%th

the /rchase of raw mater%al and ends w%th the real%Fat%on of cashfrom the sale of f%n%shed rod/cts. Th%s c!cle %n&ol&es /rchase of

raw mater%al and stores % ts con&ers%on %nto stocks of f %n%shed

goods thro/gh work%ng4%n4rogress w%th rogress%&e %ncrement of

la#o/r and ser&%ce costs.

Rte of stoc8 urnover

There %s a h%gh degree of %n&erse co4relat%onsh% #etween theB/ant/m of work%ng ca%tal and the &eloc%t! or seed w%th wh%ch

the sales are effected. A f%rm ha&%ng a h%gh rate of stock t/rno&er

w%ll need lower amo/nt of work%ng ca%tal as comared to a f%rm

ha&%ng a low rate of t/rno&er.

! Credit Poicy

78



Certa%n other factors s/ch as oerat%ng eff %c%enc! management

a#%l% t! %rreg/lar%t%es of s/l! %mortant ol%c! asset str/ct/re

%mortance of la#o/r #ank%ng fac%l % t%es etc. also %nfl/ence the

reB/%rements of work%ng ca%tal.

A*A+$I$ %F F I*A*CIA+ $AEME*$

Menin9

8enerall! f %nanc%al statement refers to two statements5 the #alance

sheet or statements of f%nanc%al os%t%on5 reflect%ng the assets l%a#%l%t%es

and ca%tal as on a art%c/lars date. And %ncome statement or rof%t and

loss statement show%ng the res/lts ach%e&ed d/r%ng a certa%n er%od.Jh%ch are reared at the end of acco/nt %ng !ear (or #/s%ness

organ%Fat%on +es%des = The anal!s%s of f%nanc%al statement %s an attemt

to determ%ne the s%gn%f%cance and mean%ng of the f%nanc%al statements

data> Accord%ng to !res = (%nanc%al statement anal!s%s %s largel! st/d!

of relat%onsh% among the &ar%o/s f %nanc%al factors %n #/s%ness as

d%sclosed #! a s%ngle set of statements and st/d! of the trend of these

factors as shown %n a ser&%ce of statement.

Accord%ng to emed! and /ller = The anal!s%s and %n terretat%on of

f%nanc%al statements are an attemt to determ%ne the s%gn%f%cance and

mean%ng of f%nanc%al statement data so that the forecast ma! #e made

of the rosects for #efore earn%ngs a#%l % t! to a! %nters and deled

mat/r%t%es and rof%ta#%l%t! and so/nd d%&%dend ol%c!.

Th/s anal!s%s of f%nanc%al statement s means s/ch a treatment of the

%nformat%on conta%ned %n the f%nanc%al statements. 6n la%nl! seak%ng

the techn%B/es of f %nanc%al statements refers to e&al/ate the ast5

c/r&et and

Pro$ected erformance of a #/s%ness f %rm. And the techn%B/es of

anal!s%s can #e al%ed to an! k%nds of f%nanc%al data .6t %s an attemt to

meas/re the enterr %se l %B/%d% t! rof% ta#% l% t! sol&enc! and other

80



%nd%cators to access %ts eff%c%enc! and erformance f%nanc%al statement

anal!s%s wh%ch are g%&en %n the follow%ng.

PR%CE'&RE$ %F F I*A*CIA+ A*A+$I$

1. -eterm%n%ng the /rose of anal!s%s.

2. 6dent%f%cat%on of the meas/rement #ase.

3. ReB/%rement of f %nanc%al statement

". Prearat%on of +alance sheet and PG; Acco/nt

'. Tele&%s%on of data.

*. Al%cat%on of aror%ate techn%B/e

,. (%nal Anal!s%s

. 6nterretat%on and Presentat%on.

%/KECI.E$

The anal!s%s of f %nanc%al statements ser&e n/m#er of d%f ferent

o#$ect%&es5

1. E&al/at%on of ast erformance

2. Ara%sal of resent cond%t %ons

3. Pred%ct%on of f/t/re otent%al

+as%call! h%stor%cal f%nanc%al statements are #etter s/%ted for the f%rst

two /roses. )owe&er the ma$or %t! of statement readers are

%nterested %n the red%ct%on %.e. caac%t! of f%rm to grow and roser

and the a#%l%t! of a f%rm to adot to &erg%ng cond%t%ons. The o#$ect%&es

of anal!s%s of f%nanc%al statement are to ser&e the %nterest of &ar%o/s

art%es5 l%ke management %n&est%ng /#l%c5 8o&ernment5 emlo!ee of

the concern5 ed/cat%on%st5 trade assoc%at%ons5 stock echange andresearch %nst%t/t%ons.

MA*A-EME*

(%nanc%al management %s a &%tal art of management. 6t cons%sts all

f%nanc%al f/nct%ons and all f%nanc%al statement of #/s%ness enterr%se

81



and the f%nanc%al management concerned w%th the so/ndness of ca%tal

str/ct/re. 6 ts effect%&e /t% l%Fat%on to know regardl! &%a#%l %t! as on

ongo%ng concern. anagement of cash5 %n &ent/re and f%ed assets and

adeB/ac! of ca%tal str/ct/re. And management %s %n&ested %n the

f%nanc%al erformance and the f%nanc%al cond%t%on of enterr%se.

I*.E$%R$

6n&estors of the #/s%ness are %nterested to know the earn%ng caac%t! of

the #/s%ness and % ts rosects of f/t/re growth As wel l as he %s %n

tr/sted %n the rof%ta#%l%t! and safet! of h%s %n&estment and wo/ld l%ke to

know whether the #/s%ness %s rof%ta#le. The %n&estor at all t%mes and

the lender of a#normal t%mes wo/ld need to know.

9a Te res/lts of oerat%ons and f%nanc%al os%t %on of the #/s%ness

onl! thro/gh the f%nanc%al statement.

9# The coman! has #een earn%ng well and %s %n a os%t%on to a!

%mress%&e d%&%dends5 as %t was do%ng %n the ast.

9c The f%nanc%al so/ndness ro&%des ass/rance as to the f/t/re

sta#%l%t! of the concern.

9d The ad&antage from th%s anal!s%s %s that % t oens / a w%derrange of %n&estment %ncome of the %n&estors w% tho/t a

corresond%ng loss of safet! at %n&estment.

/A*0ER$ A*' +E*'ER$

+anker and lender wo/ld a lso l% ke to know the safet! o f the% r

%n&estment and rel%a#%l%t! of reforms. And the! are %nterested to know

short term as wall as long4term sol&enc! os%t%ons of the ent%t!.

$&PP+IER$

S/l%ers of enterr%se are %nterested %n rece%&%ng the%r a!ment and to

know regard%ng the sol&enc! of the #/s%ness % .e. the a#% l% t! of the

coman! to mast the de#ts when the! f/ll d/e.

82



EMP+%EE$

Emlo!ees %n tr/sted %n #etter emol/ments #on/s and cont%n/ance of

the #/s%ness. The! wo/ld l %ke to know %ts f %nanc%al erformance and

rof%ta#%l%t! and to ress the%r demands for f/rther %ncrease %n wages

and other #enef%ts. These standards are /sed #! them %n s/ort of

the%r demands.

C&$%MER$

C/stomers ha&e an %nterested %n %nformat%on regard%ng cont%n/ance of

an enterr%se. Accord%ng #! the act%&%t%es of %ts c/stomers are ;ongle!

l%nked w%th %ts a#%l%t! to cont%n/e.

RE-&+A%R A&,%RIIE$

Reg/lator! A/thor%t%es wo/ld l%ke to know the rof%ts of #/s%ness And

the f%nanc%al statements reared are as er sec%f%ed lows and r/les %t

hel them a great deal %n deter m%n%ng the taes a!a#les.

-%.ER*ME*

The 8o&ernment %nterest %n the anal!s%s of f %nanc%al statements of

#/s%ness. The! ha&e to know f %nanc%al %nformat%on to reg/late the

act%&%t %es of the enterr%se5 determ%ne taat%on ol%c! com%lat%on of

nat%onal %ncome stat%st%cs.

$%C0 E@C,A*-E

The stock echange %nterested %n f %nanc%al statements #eca/se the!

ro&%de /sef/l f%nanc%al %nformat%on. +es%des the stock echange %s an

%nst%t/t%on wh%ch fac%l%tates deal%ngs of sale and /rchase of shares andde#ent/res of coman%es. 6t g%&es a lso %n format %on regard%ng

coman%es to the%r mem#ers.

P&/+IC

83



The /#l%c %s %nterested to know the ra!ers of enterr%se5 wh%ch the!

ma! /nder stand from f%nanc%al statements. +eca/se the act%&%t%es of an

enterr%se largel! %nfl/ence the local econom!.

PARAMEER$ %F A*A+$I$There %s a n/m#er of arameters are /sed for the /rose of anal!s%s5

the! are?..

+reak e&en Anal!s%s

Rat%o Anal!s%s

Trend Anal!s%s

Common s%Fe Statements Anal!s%s

Cash (low Anal!s%s

RE*' A*A+$I$

Trend Anal!s%s %s an %mortant and /sef/l techn%B/e of anal!s%s and

%nterretat%on of f%nanc%al statements. nder the techn%B/e the rat%o of

d %fferent % tems for &ar %o/s er %ods are calc/ la ted and then a

comar%son %s made. Trend anal!s%s lanlee done %n three follow%ng

wa!s.

1. Trend rat%os.

2. Trend ercentages3. 8rah%c and d %agrammat%c reresentat%on

&tiity of end Anysis

91 6 t %s a s%mle techn%B/e and eas! to /nderstand. So % t does not

%n&ol&e ted%o/s calc/lat%ons and reB/%res tra%ned eer ts.

92 +r%efl! % t h%s methods %nd%cates the f/t/re trends.

93 6 t red/ces the charges of errors and %t ro&%des the oort/n%t!

to comare the ercentages w%th also sol/te f%g/res.

RE*' RAI%

+efore Rat%o Anal!s%s5 f%rstl! we sho/ld know read%l! rat%o. 6n general

mean%ng. Rat%o %s an /s ress%on of relat%onsh% #etween one f%g/re and

84



another f %g/re wh%ch are m/t/all! %nterdeendent. 6n f %nanc%al

statements rat %o /sed for e&al/at %ng the f %nanc%al os%t %on and

erformance of the f%rm. 6n la%nl! seak%ng Rat%o Anal!s%s %s a owerf/l

and %mortant tool of f%nanc%al anal!s%s. The relat%onsh% #etween two

acco/nt%ng f %g/res /s ressed mathemat%call! %s known as f %nanc%al

rat%o. Rat%o s/mmar%es the large B/ant%t %es5 of f %nanc%al data and to

make B/al%tat%&e5 $/dgment regard%ng the f%rmIs f%nanc%al erformance

for eamle cons%der correct rat%o. 6t %s calc/lated #! d%&%d%ng c/rrent

assets5 #! c/rrent l%a#%l%t%es. The rat%o %nd%cates a relat%onsh% #etween

c/rrent assed and c/rren t l%a#%l%t%es.

And acco/nt %ng rat%o shows the %nter re lat%onsh% wh%ch E%s ts among

&ar%o/s acco/nt%ng data. 6t can #e ress/red %n two forms. The f%rst %s

known as s%mle form rat%o or /re rat%o. 6t %s eressed as B/ot%ent .

The second from %s to con&ert a s%mle or /re rat%o %nto a ercentage.

There are man! a/thors descr%#ed &ar%o/s def%n%t%ons on rat%o anal!s%s5

wh%ch are g%&en follow%ng.

1. Accord%ng to f%at%on wel l and +ed ford Rat %o %s an eress%on of

B/ant%tat%&e relat%onsh% #etween f%g/res drawn from f%nanc%al

s ta tements. And =Rat%o %s an eress %on of B/ant %ta t%&erelat%onsh% #etween two n/m#er.

2. Accord%ng to )/nt J%l l%ant5 -onaldosa = Rat %o are s%ml! a means

of h%gh l %ght%ng %n ar%thmet%cal terms of relat %onsh% #etween

f%g/res drawn from f%nanc%al statements.

3. Accord%ng to enned! and c %l l%on = The relat %onsh% of one

%tem to another eressed %n s%mle mathemat%cal form %s known

as a rat%on.

+es%des5 Rat%o anal!s%s %s the rocess of determ%n%ng and %nter rat%ng

n/mer%cal relat%on sho #etween f%g/res of f%nanc%al statements.

85



Finnci $ttements

(%nanc%al statements5 also cal led f %nanc%al reorts5 are acco/nt

#alances arra!ed %n effect%&e and mean%ngf/l order so that the facts and

concets the! ortra! ma! #e read%l! %nterreted and /sed as #ased for

dec%s%ons #! all eole who are %nterested %n the affa%rs of #/s%ness. +!

the hel of all the reorts the management ma! re&%ew the f %rmIs

rogress and dec%ded /on the co/rse of act%on to #e taken %n f/t/re.

6ts /rose %s to con&e! an /nderstand%ng of some f%nanc%al asects of

a #/s%ness f%rm. 6t ma! show a os%t%on at a moment %n t%me5 as %n case

of a #alance sheet or ma! re&eal a ser%es of act%&%t%es or a g%&en er%od

of t%me as %n case of %ncome statement. The term =(%nanc%al Statement>

as /sed %n modern #/s%ness5 refers to statement the #alance sheet or

statement of f %nanc%al os%t%on reflect%ng the assets5 l %a#%l% t %es and

ca%tal as on a art%c/lar date and %ncome statement or rof%t 7 loss.

Statement show%ng the res/lts ach%e&ed d/r%ng a certa%n er%od5 wh%ch

are reared at the end of acco/nt%ng !ear for a #/s%ness enterr%se

(%nanc%al statements are the o/tcome of s/mmar%F%ng rocess of

acco/nt%ng.

*ture of finnci sttements

The f%nanc%al statements are reared on the #as%s of recorded facts.

The recorded facts are those wh%ch ca# #e eressed %n monetar!

terms. The statements are reared for a art%c/lar er%od5 generall!

one !ear. The transact%ons are recorded %n a chronolog%cal order as and

when the e&ent haen. The acco/nt %ng records and f%nanc%a l

statements reared from these records are #ased on h%stor%cal costs.The f%nanc%al statements #! nat/re are s/mmar%es of the %tems recorded

%n the #/s%ness and these statements are reared er %od%call!.

86



Person Lud9ments

E&en tho/gh certa%n standard acco/nt%ng con&ers%ons are followed %n

rear%ng f %nanc%al stat #/t st% l l ersonal $/dgment of the acco/ntant

la!s an %mortant art.

%;Lective of finnci sttements

(%nanc%al statements are the so/rces of %nformat%on on the #as%s of

wh%ch concl/s%ons are drawn a#o/t the rof% ta#%l %t! and f %nanc%al

os%t%on of a concern. The! are the ma$or means emlo!ed #! f%rms to

resent the%r f %nanc%al s%t/at%on of owners5 cred%t %ns and the general

/#l%c. The r%mar! o#$ect%&e of f %nanc%al statements %s to ass%st %n

dec%s%on mak%ng.

9% To ro&%de re l%a# le f%nanc%al %n fo rmat%on a#o/t econom%c

reso/rces and o#l%gat%ons of a #/s%ness f%rm.

9 %% To ro&%de other needed %nformat%on a#o/t change %n s/ch

econom%c reso/rces and o#l%gat%ons.

9% %% To ro&%de rel%a#le %nformat%on a#o/t changes %n net reso/rces

ar%s%ng o/t of #/s%ness act%&%t%es.

9%& To ro&%de f %nanc%al %nformat%on that ass%sts %n est %mat%ng theearn%ng otent%als of #/s%ness.

9& To d%sclose5 to the etent oss%#le5 other %nformat%on related to

the f %nanc%al statements that %s rele&ant to the needs of the

/sers of these statements.

Finnci sttement nysis

Anal!s%s and %n terretat%on of f%nanc%al statements are an attemt todeterm%ne the s%gn%f%cance and mean%ng of the f%nanc%al statement data

so that a forecast ma! #e made of the rosects for f/t/re earn%ngs5

a#%l%t! to a! %nterest5 de#t mat/r%t%es L #oth c/rrent as well as longterm

and ro#a#%l%t! of a so/nd d%&%dend ol%c!.

87



y:es of finnci Anysis

A d%st%nc t%on ma! #e drawn #etween &ar%o/s t!es of f%nanc%al anal!s%s

e%ther on the #as%s of mater%al /sed for the same.a Accord%ng to ater%al /sed 4

1) Etern Anysis

Those who do not ha&e access to the deta%led records of the coman!

make %t. Th%s gro/5 wh%ch has to deend almost ent%rel! on /#l%shed

f%anc%al s ta tements5 %ncl/des %n&estors5 cred% t agenc%es and

go&ernmental agenc%es reg/lat%ng a #/s%ness %n a nom%nal wa!. The

os%t%on of the eternal anal!st has #een %mro&ed %n recent t %mesow%ng to the go&ernmental reg/lat%ons reB/%r%ng #/s%ness /nder tak%ngs

to make a&a%la#le deta%led %nformat%on to the /#l%c thro/gh a/d%ted

acco/nts.

2) Intern Anysis

The %nternal anal!s%s %s accoml%shed #! those who ha&e access

to the #ooks of acco/nts and all other %nformat%on related to #/s%ness.

Jh%le cond/ct%ng th%s anal!s%s the anal!st %s a art of the enterr%se he%s anal!F%ng. Anal!s%s for manager%al /roses %s the %nternal t!e of

anal!s%s and %s cond/cted #! eec/t%&es and emlo!ee of the enterr%se

as well as go&ernmental and co/rt agenc%es wh%ch ma! ha&e ma$or

reg/lator! and other $/r%sd%ct%on o&er the #/s%ness.

;) Accordin9 to moctus o:erndit of nysis

1 )or%Fontal Anal!s%s :4

Jhen f%nanc%al statements for a n/m#er of !ears are re&%ewedand anal!sed5 the anal!s%s %s called =hor%Fontal anal!s%s>. As %t %s

#ased on data from !ear to !ear5 rather than on one date or

er%od of t %me as a whole5 th%s %s also known as =-!nam%c

anal!s%s>.

88



2 ert%cal Anal!s%s :4

6t %s freB/entl! /sed for referr%ng to rat%os de&eloed for one date

or for one acco/nt%ng er%od. ert%cal anal!s%s %s also called =stat%c

anal!s%s>. Th%s %s not &er! cond/ct%&e to a roer anal!s%s of the f%rmIs

f%nanc%al os%t%on and %ts %nterretat%on as %t does not ena#le to st/d!

date %n ersect%&e. Th%s can onl! #e ro&%ded #! a st/d! cond/cted

o&er a n/m#er of !/ears so that comar%sons can #e effected.

Therefore5 &ert%cal anal!s%s %s not &er! /se f/l.

*eed of F$A

The need of f %nanc%al statement anal!s%s ar%ses #eca/se of d%fferent

o#$ect%&e of d%fferent /sers of f %nanc%al statement and conseB/entl!.

The! seek answers to &ar%o/s B/est%ons erhnent to them. These

o#$ect%&es can #e d%&%ded %n to two arts.

9% Common o#$ect%&e

ar%o/s common o#$ect%&es of f %nanc%al statement anal!s%s ca #e

categor%ses as /nder

• To get tr/e and fa%r &%ew of f%nanc%al health of the reort%ng ent%t!.

•To get acc/rate %ct/re of strength and sta#%l %t! of reort %ngent%t!.

• To ens/re the f%rms caac%t! to a! %ts short term a!ment.

• To ha&e an %dea of oerat %onal eff %c%enc! and rof %ta#%l %t! of

reort%ng ent%t!.

• To ha&e an %dea of relat %&e erformance of reort%ng ent %t!

kee%ng %n &%ew the %nd/str! as a whole of wh%ch reort%ng ent%t!

%s a art.

• To ha&e a look /on f/t/re rosects of reor t%ng ent%t!.

9 %% 6nd %&%d/al O#$ect%&e :4

89



a (or owners and 6n&estors

• To know f%nanc%al cond%t%on of the organ%sat%on %n #etter wa!.

• To ha&e a look /on er formance of &ar %o/s segments of

reort%ng entst!.

• To f %nd o/t rank of reort %ng ent % t! %n the %nd/str! to wh%ch % t

#elongs.

9# (or +ankers and one! lenders 4

• To ha&e look /on a!%ng caac%t! of reort%ng ent%t!.

• To ha&e look /on sol&enc! os%t%on.

• To ha&e a look /on comonents of ca%tal s tr/ct/re and

#orrow%ng caac%t! of the f%rm.

9c (or anagement

• To take hel of f%nanc%al statement anal!s%s %n tak%ng %mortant

dec%s%ons.

• To asses rof%ta#%l%t! os%t%on.

PR%CE'&RE %F F$A

There are three stes %n&ol&ed %n the anal!s%s of f %nanc%al

statements. These are 9 % select%on. 9 %% Class%f %cat %on and 9 %% %

6nterretat%on. The f%rst ste %n&ol&es select%on of %nformat%on or data

rele&ant to the /rose of anal!s%s of f%nanc%al statements. The 2 nd ste

%n&ol&ed %s the method%cal class%f%cat%on of the data and the th%rd ste

%ncl/des draw%ngs of %nterences and concl/s%ons.

91 The anal!st sho/ld acB/a%nt h%mself w% th the r%nc%les and

ost/lates of acco/nt %ng. )e sho/ld know the lans and

90



ol%c%es of the management so that he ma! #e a#le to f%nd o/t

whether these lans. Are roerl! eec/ted or not.

92 The etent of anal!s%s sho/ld #e determ%nd so that the shere

of work ma! #e dec%ded. 6f the a%m %s to f %nd o/t the earn%ng

caac%t! of the enterr%se then anal!s%s of %ncome statement

w%ll #e /ndertaken. On the other hand %f f%nanc%al os%t%on %s to

#e st/d%es then +GS anal!s%s w%ll #e necessar!.

93 The f%nanc%al data g%&en %n the statement sho/ld #e

reorgan%Fed and re4arranged. 6t w%ll %n&ol&e the gro/%ng of

s%m%lar data /nder same heads5 #reak%ng down of %nd%&%d/al

comonents of statement accord%ng to nat/re. The data %s

red/ced to a standard form.

9" A relat%onsh% %s esta#l%shed among f %nanc%al statements w%th

hel of tools and techn%B/es of anal!s%s s/ch as rat%os5 trends5

common s%Fe5 f/nds flow etc.

9' The %nformat%on %s %nterreted %n a s%mle and /nderstandle

wa!. The s%gn%f%cance and /t%l%t! of f%nanc%al data %s ela%ned

for hel%ng dec%s%on tak%ng.

9* The concl/s%ons drawn from %nterretat%on are resented to the

management %n the form of reorts.

Procedure for 8no>in9 ><et<er A trnsction Resuts in t<e fo> of

funds or not

1. Anal!se the transact%on and f%nd o/t the two acco/nts

%n&ol&ed.

2. ake $o/rnal ent r! o f the t ransact%on.

3. -eterm%ne whether the acco/nts %n&o l&ed %n the transact%on

are c/rrent or non4c/rrent.

91



". 6f #oth the acco/nts %n&o l&ed are c/rrent %.e . e %ther c/rrent

asset or c/rrent l %a#% l % t %es5 % t does not res/lt %n the f low of

f/nds.

'. 6f #oth the acco/nt %n&ol&ed are non4c/rrent %.e. e%ther

ermanent assets or ermanent l%a#%l%t%es %t st%ll does not res/lt

%n the flow of f/nds.

*. 6 f the acco/nts %n&ol&ed are s/ch that one %s a c/rrent al l wh%le

the other %s a non4c/rrent AGC. % .e . c/rrent asset and

ermanent l%a#%l%t! or c/rrent asset and f%ed asset or c/rrent

l %a#%l% t! and f%ed asset or c/rrent l %a#%l% t! and f%ed asset or

c/rrent l %a#%l % t! and ermanent l %a#%l % t! then %t res/lts %n the

flow of f/nds.

Menin9 of FF$

(/nds flow statements %s a method #! wh%ch we st/d! changes %n the

f%nanc%al os%t%on of a concern #etween #eg%nn%ng and end%ng f%nanc%al

statements dates. 6tIs a statement show%ng so/rces and /ses of f/nds

for a er%od of t%me.

Accordin9 to Fou8e ?

=A statement of so/rces and al%cat%on of f/nds %s to a techn%cal de&%ce

des%gned to anal!se the changes %n the f%nanc%al cond%t%on of a #/s%ness

enterr%se #etween two dates.>

Accordin9 to Ant<ony

=The f/nds f low statement descr%#es the so/rce from wh%ch

add%t%onal f/nds were der%&ed and the /se to wh%ch these so/rces were

/t.>

(/nds flow statement %s called #! &ar%o/s names s/ch as so/rces and

al%cat%on of f/nds5 statement of changes %n f%nanc%al os%t%n5 so/rces

and /ses of f/nds5 s/mmar! of f%nanc%al oerat%ons5 o&ement of f/nds

92



statement5 (/nds Rece%&ed 7 -%s#/rsed statement5 f/nds generated

and eended statement.

&sesB $i9nificnce nd Im:ortnce of FF$

A f/nds flow statement %s an essent%al fool for the f%nanc%al anal!s%s and

%s of r%mar! %mortance to the f%nanc%al mgmt. Now4a4da!s5 %t %s #e%ng

w%del! /sed #! the f %nanc%al anal!s%s5 cred%t grant%ng %nst%t/t%ons and

f%nanc%al managers. The #as%c /rose of a f/nds flow statement %s to

re&eal the changes %n the work%ng ca%tal on the two #alance sheet

dates. 6 t also descr%#es the so/rces from wh%ch add%t%onal work%ng

ca%tal has #een f%nanced and the /ses to wh%ch work%ng ca%tal has

#een al%ed.

The s%gn%f %cance or %mortance of f/nds f low statement can #e well

followed from %ts &ar%o/s /ses g%&en #elow.

It <e:s in t<e nysis of finnci o:ertion

The f%nanc%al statements re&eal the net effect of &ar%o/s transact%ons onthe oerat%onal and f%nanc%al os%t%on of a concern. The #alance sheet

g%&e a stat%c &%ew of the reso/rces of a #/s%ness and the /ses to wh%ch

these reso/rces ha&e #een /t at a certa%n o%nt of t %me. The ((S

ela%ns ca/ses for s/ch changes and also the effect of these changes

on the l%B/%d%t! os%t%on of the coman!.

It t<ro>s i9<t on mny :er:ein9 uestins of 9ener interest ?

Jh%ch otherw%se ma! #e d%ff%c/lt to #e answered5 s/ch as:a Jh! were the net c/rrent assets lesser %n s%te of h%gher rof %t

and &%ce4&ersaU

# Jh! more d%&%dends co/ld not #e declared %n s% te of a&a% la#le

rof%tsU

93



c )ow was 6 t oss%#le to d %str %#/ te more d%&%dends than the

resent earn%ngs U

d Jhat haened to the net rof% t U where d%d the! go.

e Jhat haened to the rosceeds of sale o f f%ed assets o r%ss/e of shares5 de#ent/res etcU

f Jhat are the so/rces of the rea!ment o f de#t U

g )ow was the %ncrease %n work%ng ca% tal f%nanced and how w% ll

%t #e f%nanced %n f/t/reU

3) I t <e:s in t<e formtion of reistic dividend :oicy

Some t%mes a f%rm has s/ff%c%ent rof%ts a&a%la#le for d%str%#/t%on

as d%&%dend #/t !et %t ma! not #e ad&%sa#le to d%str%#/te d%&%dend for

lock of l %B/%d or cash so/rces. 6n s/ch cases a f/nds flow statement

hels %n the format%on of a real%st%c d%&%dend ol%c!.

4) I t <e:s in t<e :ro:er oction of resources

The reso/rces of a concern are alwa!s l%m%ted 7 %t wants to make the

#est /se of these reso/rces. A ro $ected f/nds f low statement

constr/cted for the f/t/re hels %n mak%ng mangager%al dec%s%ons. The

f%rm can lan the delo!ment of %ts reso/rces and allocate them among

&ar%o/s al%cat%ons.

5) It cts s future 9uide

A ro$ected f/nds flow statement also acts as a g/ %de for f/ t/re %s

the management. The management can come to know the &ar%o/s

ro#lems %t %s go%ng to face %n near f/t/re for want of f/nds. The f%rmIs

f/t/re needs of f/nds can #e ro$ected well %n ad&ance and also thet%m%ng of these needs. The f%rm can arrange to f %nance these needs

more effect%&el! and a&o%d f/t/re ro#lems.

+imittion of funds fo> sttement

94



The f/nds flow statement has a n/m#er of /ses5 howe&er5 %t has certa%n

l%m%tat%ons also5 wh%ch are l%sted #elow :

1 6t sho/ld #e remem#ered that a f/nds f low statement %s not a

s/#st %t/te of an %ncome statement or a #alance sheet . 6 t

ro&%des onl! some add%t%onal %nformat%on as regards changes

%n work%ng ca%tal.

2 6t cannot re&eal con t%n/o/s changes.

3 6t % s not an or%g %nal s ta tement #/t s %ml! are arrangement o f

data g%&en %n the f%nanc%al statement.

" 6t %s essent%all! h %sto r%c %n na t/ re and ro$ected f/nds flow

statements cannot #e reared w%th m/ch acc/rac!.

' Changes %n cash are more %mortant and rele&ant for f %nanc%al

management than the work%ng ca%tal.

CA$, F+%7 $AEME*

I*R%'&CI%*

Cash la!s a &er! %mortant role %n the entr%es econom%c l %fe of a

#/s%ness. A f%rm needs cash to make a!ment to %ts s/l%es5 to %nc/r

da! to da! eenses and to a! salar%es5 wages5 %nterest and d%&%dend

etc. %nfact what #lood %s to a h/man #od!5 cash %s to a #/s%ness

enterr%se. 6t %s &er! essent%al for a #/s%ness to ma%nta%n an adeB/ate

#alance of cash. +/t man! a t%mes5 a concern oerates rof%ta#l! and

!et %t #ecomes &er! d%ff %c/lt to a! taes and d%&%dend. Th%s ma! #e

#eca/se L

9 % altho/gh ha&e rof% t ha&e #een earned !et cash ma! not ha&e#een rece%&ed or

9%% e&en % f cash has #een rece%&es5 %t ma! ha&e dra %ned o/ t

ca/sed5 for some other /rosed.

Th%s mo&ement of cash %s o f &%tal %mortant to the management.

95



Menin9

Cash flow statement %s a statement wh%ch descr%#es the %nflows co/rses

and o/t f lows 9/ses of cash and cash eB/%&alents %n an enterr%se

d/r%ng a sec%f %ed er%od of t %me. s/ch a statement en/merat%on net

effects of the &ar%o/s #/s%ness trans%t%ons %n cash and %ts eB/%&alents

and takes %nto acco/nt rece%ts and d%s#/rsement of cash. A cash flow

statement s/mmar%Fes the ca/ses of changes %n cash os%t %on of a

#/s%ness ca/ses of changes %n cash os%t%on of a #/s%ness enterr%se

#etween dates of two #alances sheets.

Accord%ng to AS43 9Re&%sed an en terr%se sho/ ld reare a cash flow

statement and sho/ld resent %f for each er%od for wh%ch f %nanc%al

statements reared. The term and cash eB/%&alents and cash flows are

/sed %n th%s statement w%th the follow%ngs :

9 % cash comr%ses cash on hand and demand deos% ts

9%% cash eB/%&alents are short term h%ghl! l%B/%d %n&estments that

are read! con&ert%#le %nto known amo/nts of cash and wh%ch

are s/#$ects to an %ns%gn%f%cant r%sk of change %n &al/e. Cash

eB/%&alents are held for the /rose of meet%ng short4term

cash comm%tments rather than for %n&estment or o ther

/roses.

9%%% Cash flows are %nflows and o/t flows of cash and cash

eB/%&alents. (low of cash %s ser%al to ha&e taken lace when

an! transact%on make changes %n the amo/nt of cash

eB/%&alents a&a%la#le #efore haen%ng of the transact%ng.

Met<od of Cs< Fo>

Cash management needs strateg%es to deal w%th &ar%o/s facets of cash.

(low%ng are some of %ts facts.

) Cs< Pnnin9

Cash lann%ng %s a techn%B/e to lan and control the /se of cash. A

ro$ected cash flow statement ma! #e reared5 #ased on the

96



resent #/s%ness oerat%ons and ant%c%ated f/t/re act%&%t%es. The

cash %nflows from &ar%o/s so/rces ma! #e ant%c%ated and cash a

o/tflow w%ll determ%ne the oss%#le /ses of cash.

;) Cs< Forecst nd /ud9etin9

The cash #/dget %s the most %mortant de&%ce for the control of

rece%ts and a!ments of cash. 6f cash #/dget %s an est%mate of

cash rece%ts and d%s#/rsements d/r%ng a f/t/re5 short or long

er%od of t%me.

The short4term forecasts can #e made w%th the hel of cash flow

ro$ect%ons. The f%nance manager w%ll make est%mates of l%kel!

rece%ts %n the near f/t/re and the eected d%s#/rsements %n the

er%od. The long4term cash forecasts are also essent%al for roer

cash lann%ng. These est%mates ma! #e for three5 fo/r5 f%&e or more

!ears. ;ong4term forecasts %nd%cate coman!Is f/t/re f%nanc%al

needs for work%ng ca%tal5 ca%tal ro$ect are :

( i) Recei:ts nd 'is;ursements Met<od

6n th%s method the rece%ts and a!ment of cash are est%mated. The

cash rece%ts ma! #e from cash sales5 collect%ons from de#tors5

sale of f%ed assets5 rece%ts of d%&%dend or other %ncome of all the

%tems5 %t %s d%ff%c/lt forecast sales.

( ii) AdLusted net income Met<od

Th%s method ma! also know as so/rces and /sed aroach. 6t

generall! has three sect%ons. So/rces of cash5 /ses of cash and

ad$/sted cash #alance. The ad$/sted net %ncome method hels %n

ro$ect%ng the coman!Is need for cash at some f/t/re date and to

see whether the coman! w%ll #e a#le to generate s/ff%c%ent cash. 6f

not then %t w%ll ha&e to dec%de a#o/t #orrow%ng or %ss/%ng shares etc.

ME,%' %F $+%7I*- CA$, %&F+%7$

97



A coman! can kee cash #! effect%&el! controll %ng d%s#/rsements. The

o#$ect%&e of controll%ng cash o/tflows %s to slow down the a!ments as far

as oss%#le follow%ng methods can #e /sed to dela! d%s#/rsements.

1 Pyin9 on st dt

The d%s#/rsements can #e dela!ed on mak%ng a!ments on the last

d/e date onl!. 6f the cred%t %s for 1 da!s then a!ment sho/ld #e

made on 1 th da! onl!. 6t can hel %n /s%ng the mone! for short

er%ods 7 the f%rm can make /se of cash d%sco/nt also.

2 Pyments t<rou9< 'rfts

A coman! can dela! #! %ss/%ng drafts to the s/l%ers %nstead of

g%&%ng cheB/es . Jhere a cheB/e %s %ss/ed then the coman! w%ll

ha&e kee a #alance on %ts acco/nt so that the cheB/e %s a%d

whene&er %t comes.

3 AdLustin9 Pyro Funds

Some econom! can #e eerc%sed on a!roll f/nds also. Red/c%ng

the freB/enc! of a!ments can do %t. 6f the a!ments are made

weekl! then th%s er%od can #e etended to a month5 secondl!5

f%nance manager can lan the %ss/%ng of salar! cheB/es and the%r

d%s#/rsement.

4 CentriDtion of Pyments

The a!ments sho/ld #e central%Fed and a!ment sho/ld #e made

thro/gh drafts or cheB/es. Jhen cheB/es are %ss/ed from the ma%n

off%ce then %t w%ll take t%me for the cheB/es to #e cleared thro/gh

ost.

5 Inter/n8 rnsfer

An eff%c%ent of cash %s also oss%#le #! %nter4#ank transfers. 6f the

coman! has acco/nts w%th more than one #ank then amo/nts can

#e transferred to the #ank where d%s#/rsements are to #e made.

6 M8in9 use of Fot

98



(loat %s d%fference #etween the #alance shown %n coman!Is

cash#ook 9+ank Col/mn and #alance ass#ook of the #ank.

Jhene&er a cheB/e %s %ss/ed the #alance at #ank %n cash #ook %s

red/ced.

'eterminin9 %:timum Cs< /nce

A f%rm has to ma%nta%n a m%n%m/m amo/nt to cash for sett%ng the d/es %n

t%me. Th%s %s needed to /rchase raw mater%als a! cred%tors da!4to4da!

eenses5 d%&%dend etc. The test of l%B/%d%t! of the f%rm %s that %t %s a#le to

meet &ar%o/s o#l%gat%ons %n t%me.

There are #as%call! two aroaches to determ%ne an ot%mal cash #alance5

namel!:

9% %n%m/m Cost odels

9%% Prear%ng cash +/dget.

99



C%*C+&$I%*

The a#o&e st/d! are done #! me thro/gh OSC+ #eca/se all needed mater%al

and data are g%&en #! the ACST6 accord%ngl! 6 ha&e done m! ro$ect.

(%nall! 6 w%ll concl/de that from the anal!s%s %t %s fo/nd that the f%nanc%al os%t%on

of the +ank %s B/%te good. The +ank has got a good f%nanc%al lann%ng sol&enc!

os%t%on of the #ank %s sta#le and sat%sfactor! and the l%B/%d%t! os%t%on %s also

good. The #ank has the a#%l%t! to a! %ts c/rrent o#l%gat%on %n t%me as and when

d/e.

+! the anal!s%s %t concl/de that the sol&enc! l%B/%d%t! and rof%ta#%l%t! os%t%on of

the #ank %s good. The #ank erformance %s %mro&%ng da! #! da!.

100



$&--E$I%*

The follow%ng %nterretat%ons are #ased on the anal!s%s of the trend anal!s%s 7

aggregate change method :

1. +! anal!s%s the work%ng ca%tal of the #ank %ncreased %n each !ear. 6t

means the #ank has %ncreased %ts c/rrent f%nanc%al os%t%on5 wh%ch %s

the l%fe#lood of the OSC+.

2. The l%B/%d assets of the #ank ha&e %ncreased %n regards to re&%o/s

!ear %.e. 2421 wh%ch shows the strangeness of the l%B/%d%t!

os%t%on of the OSC+.

3. -eos%ts5 +orrow%ngs5 Ad&ances and ;oans are %ncreased %n each ear

%n comared to re&%o/s !ear5 wh%ch shows the long4term f%nanc%al

os%t%on of the OSC+.

". There %s a cont%n/es %ncrease %n rof%t5 reser&e for last !ears. Jh%ch

shows the rof%ta#%l%t! of the OSC+.

'. +ank has rece%&ed more %nterest than %t has a%d. (or the last fo/r !ear

the #ank has %mro&ed %ts os%t%on %n gett%ng %nterest than a!%ng the

%nterest to deos%tors. Jh%ch shows %mro&ement %n rof%ta#%l%t! of the

#ank.

*. The oerat%ng eenses of the #ank ha&e %ncreased %n the last fo/r

!ears5 as the #ank eensed %ts #/s%ness for th%s reason %t has

eended more on oerat%ng eenses.

,. The Net rof%t of the #ank has %ncreased %n the last fo/r !ears. S% %t

shows good f%nanc%al os%t%on of the OSC+. +/t the growth rate of

rof%t %s decreas%ng %n re&%o/s !ear.

101



/I/+I%-RAP,

1. anagement Acco/nt%ng :

R. . Sharma 7 Sash% 8/ta

2. Pr%nc%les of anagement Acco/nt%ng

an ohan S. N 8o&al

3. anagement Acco/nt%ng 7 (%nanc%al Control

-r. S. N. aheshwar%

". Ann/al reorts of OSC+

'. Jae#s%t of OSC+

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