Data Analysis and Interpretation

CONTENTS
CHAPTER CONTENT PAGE

NO. NO
I Industry profile
1.1 General Introduction
1.2 Industrial Background
II Research Design
2.1 Review of literature
2.2 Objectives of the study
2.3 Sources of data
2.3(a)Primary data
2.3(b)Secondary data
2.4 Sampling plan
2.5 Data collection instruments
2.5(a) Tools and Techniques of
Data Collection
2.5 (b) Statistical Tools for
analyses
2.6Limitations of the study
III Organization Profile
IV Analysis & Interpretation of the Data
V Summary of Findings, Recommendations
and Conclusion.
Annexure
Bibliography
LIST OF TABLES
TABLE TITLE OF THE TABLE PAGE

NO. NO
4.1
4.2
4.3
4.4
4.5
4.6
4.7
4.8
4.9
4.10
4.11
4.12
4.13
4.14
4.15
LIST OF PIE DIAGRAMS
DIAGRAM DIAGRAM TITLE PAGE

NO NO.
4.1
4.2
4.3
4.4
4.5
4.6
4.7
4.8
4.9
4.10
4.11
4.12
4.13
4.14
4.15
INDUSTRY PROFILE
1.1 GENERAL INTRODUCTION
The present study of financial performance of Tamil Nadu State Apex Co-
operative Bank, Chennai is intended to examine the current practices of financial performance in
the regard under the present inflationary condition management of an even management of profit
and this requires greatest affection of the financial performance. The Project communicates
financial information to the users though statements and reports. The financial statements
contain summarized of the firm’s financial organized systematically.
Analysis of financial performance is a collection of data organized according to

logical and consistent accounting procedures. The first step towards financial analysis is the
interpretation of financial statements. Its purpose is to convey an understanding of some financial
aspects of a business firm. Its may show the position of the firm at a particular moment as in the
case of a balance sheet or may reveal a series of activities over a given period of time as in case
of income statement. According to J.R.Monga , “the financial statement are the end products of
the accounting process starting from the recording of business transaction expressed in money
values financial statements are account balance arrayed in effective and meaningful order”.
Two basic financial statements prepared for the purpose of external reporting are
 Profit and loss account

 Balance sheet
Traditional financial statement includes the balance sheet and in the profit and
loss account of TNSC Bank, and balance sheet for the last four years i.e. 2014-17 to fine the
financial position of TNSC Bank.
FINANCIAL ANALYSIS
Financial analysis is the process of evaluation of relationship between component
parts of financial statements to obtain a better understanding of the firm’s position and
performance. Financial analysis will give the management considerable insight into levels and
areas strength or weakness. Financial Statements are prepared primarily for decisions-making.
They play a dominant role in setting the framework of management decisions. But the
information provide in the financial statement is not an end in itself as meaningful conclusions
can be drawn from these statement alone.
TYPES OF FINANCIAL ANALYSIS
The process of financial statement analysis is of different types. The process of

analysis classified on the basis of information used and “modus operandi” of analysis. The
classification is as under.
 On the basis of material used

 External analysis
 Internal analysis
 On the basis of “modus operandi” of analysis
 Horizontal analysis
 Vertical analysis
ON THE BASIS OF MATERIAL USED
External Analysis
The analysis is based on published financial statements of a firm. Outsiders have

limited access to internal records of the concern. Therefore, they depend on published financial
statements. Thus, the analysis done by outsiders namely, creditors, suppliers, investors and
government agencies are known as external analysis. This analysis serves a very limited purpose.
Internal analysis
This analysis is done on the basis of internal and unpublished records. It is done
by executives or other authorized official. It is very much useful and significant to employees
and management.
ON THE BASIS OF MODUS OPERANDI OF ANALYSIS
Horizontal analysis
In the case of this type of analysis, financial statement for number of years are
reviewed and analyzed. The current year’s figure are compared with in the standards or base
year. The analysis statement usually contains figures for two or more years and the changes are
shown regarding each item form the base year usually in the form of percentage. Such an
analysis gives the management considerable insight into levels and areas of strength and
weakness. Since this type of analysis is based on the date from year rather than on one date, it is
also termed as “Dynamic Analysis”.
Vertical Analysis
Vertical analysis is also known as ‘Static analysis ‘or ‘Structure’. This analysis is
made on the basis of a single set of financial statements prepared at a particular date. Under
vertical analysis, quantitative relationship is established between different items shown in a
particular statement. Common-size statements are expressed as a percentage to any one item as
base.
TECHNIQUES OF FINANCIAL ANALYSIS
A financial analyst can adopt one or more of the following techniques/tools of

financial analysis.
 Comparative Financial Statements

 Common-size Financial statements
 Ratio Analysis
COMPARATIVE FINANCIAL STATEMENTS
This is another technique used in financial statement analysis. These statements

summarize and present related data for number of years, in co-operating there is changes
(absolute and relative) in individual items of financial statements. These statements normally
comprise as well as in working capital. They help in making inter firm comparisons and also
highlight the trends in performance efficiency and financial position. The comparative statements
are used as a tool for general communication.
Balance sheets as on two or more different dates are used for comparing the
assets, liabilities and net worth of the company. Comparative balance sheet analysis is useful for
studying the trends of an undertaking.
ADVANTAGES:
 Comparative statements helps the analyst to evaluate the performance of the

company.
 Comparative statements can be also be used to compare the performance of the
firm with the average performance of the industry between different years.
 It helps in identification of the weakness of the firm and remedial measures can be
taken accordingly.
COMMON SIZE FINANCIAL STATEMENTS
Common size statements indicate the relationship of various items with some
common items, (expressed as percentage of the common item). In the income statements, the
sales figure is taken as basis and all other figure are expressed as percentage of sales. Similarly,
in the balance sheet the total assets and liabilities is taken as basis and all other figure are
expressed as percentage of this total. The common size statements are useful in interpreting the
financial performance of the company.
The percentage so calculated is compared with corresponding percentages in other

periods or the other firms and meaningful conclusions are drawn. Generally, a common size
income statement and common size balance sheet is prepared.
RATIO ANALYSIS
Ration Analysis is a powerful tool of financial analysis. A ratio is defined as “The

indicated quotient of two mathematical expression” and as “The relationship between two (or)
more things”.
In financial analysis , a ratio is used as a benchmark for evaluating the financial position and
performance of a firm the absolute accounting figures reported in the financial statements do not
provide a meaningful understanding of the performance and financial position of a firm an
accounting figure convey meaning. When it is related to some other relevant information.
MEANING OF RATIO
A ratio is only a comparison of numerator with the denominator. The term ratio
refers to the numerical or quantitative relationship between two figures. A ratio is the relationship
between two figures is obtained by dividing the former by the latter. Ratios are designed to show
how one number is related to another. It is worked out by dividing and number to another.
TYPES OR RATIOS
Ratios may be classified into the four important categories.
 Liquidity Ratios
 Leverage Ratios
 Activity Ratios
 Profitability Ratios
IMPORTANCE OF RATIO
 Aids to measure general efficiency

 Aids to measure financial solvency
 Aids forecasting the planning
 Facilities decision making
 Aids in corrective action
 Aids in intra firm comparison
 Act as general communication means
 Evaluation efficiency
 Effective tool
ADVANTAGES OF FINANCIAL STATEMENT ANALYSIS
 There are various advantages of financial statement analysis

 Financial statements analysis can help the government agencies to analyze the taxation
due to company.
 Company can analyze its own performance over the period of time through financial
statement analysis.
 The major benefit is that investors get enough idea to decide about the investments of
their funds in the specific company.
1.2. INDUSTRY PROFILE
CO-OPERATIVE BANKS IN INDIA
The co-operative banks in India started functioning almost years ago. Co-
operative Banks in India are registered under the co-operative societies Act. The co-operative
bank is also regulated by RBI. They are governed by the banking regulations Act 1949, the co-
operative Bank is an important constituent of the financial system, judging by the role assigned
to co-operative, the expectation the co-operative is supposed to fulfils, their number and the
number of offices the co-operative bank operate. Though the co-operative movement originated
in the west, but the importance of such banks have assumed in India plays an importance role
even today in rural financing. The business of co-operative Bank in the urban areas also has
increased phenomenally in the recent years due to the sharp increase in the number of primary
Co-operative bank.
CO-OPERATIVE BANKS IN INDIA FINANCE RURAL AREAS UNDER
 Farming
 Cattle
 Milk
 Hatchery
 Personal Finance
CO-OPERATIVE BANKS IN DIA FINANCE URBAN AREAS UNDER
 Self- employment
 Industries
 Small scale units
 Home finance
 Consumer finance
 Personal finance
WHY CO-OPERATIVE BANK WAS FORMED
The co-operative banks can trace it origins backs to 1872 and the formation off
the loan and deposit department of the co-operative wholesale society. Four years later it
changed its name to CWS Bank although in the early years it only took deposits and granted
loans to the thousands of loans retail co-operative societies, it was not long before it was acting
as the bank of personal consumers.
The bank grew steadily, with branches opened in Newcastle, Landon and
Glasgow. After the First World War, the first in store banking points were established in co-
operative store and more branches were opened in key locations. By 1972 the bank which was
then known as the co-operative banks, had 321 branches thought-out the countries. In 1975 the
co-operative bank become the first bank, for some forty years to join the committee of London
clearing banks and then it has grown at rapid rate.
Today, the co-operative bank is the only UK clearing bank to publish an ethical
stance whereby clearly tells its customers who will not do business with. Since launching ethical
positioning in May 1992, thousands of concerned people who do not wish their money to not be
used for unethical reasons have had the opportunity to choose a likeminded bank.
The co-operative bank was one of the first banks to offer its customers a twenty
four hour a day telephone banking services (especially develop for small and medium sized
companies).
The co-operative bank also has a most commendable history of doing good,
supporting good causes such a mental health.
The co-operative bank offers secured loans, with terms which can be seen on the
co-operative bank website, and which are good in comparison to “other more expensive loans are
credit cards”. Of course you have to pay the money back, but the idea is to barrow a sensible
amount and it back over reasonable period as agreed.
At the time of publishing (2004-2007), one can borrow any amount up to $25000
and pay it back by affordable payments over one to seven years and even take out insurance to
cover repayment problem. Also “be safe in the knowledge that the rate is fixed throughout the
term of the loan” which is an important consultation were some other banks have variable rate
which could do something scary. Also the co-operative bank has an ethical manifesto with the
co-operative bank, you can be certain that the money you have barrowed has not come from the
profits of necessary pollution, human rights abuses or nay other activity which conflicts with
strict ethical policy.
1.2 INDUSTRIAL BACKGROUND

MISSION
The mission of the bank is to mobilize resources, provide banking products and
other professionalized service to the people, strengthen the affiliates, provide vibrant leadership
to the co-operative banking system, achieve growth and ultimately to attain prime position in the
banking industry.
INTRODUCTION
The Tamil Nadu State Apex Co-operative Bank Ltd. (TNSC Bank Ltd)
functioning in Tamil Nadu are fulfilling the credit requirement of the farmers, weavers, rural
artisans, consumers of the urban area. These institutions are known as so-operative credit
institution. The TNSC Bank is providing agriculture credit for both short-term and medium-term
loans to farmers and also providing non-agricultural credit for enlistment of the farmers and the
rural population through DDCB. The TNSC Bank has been playing a major role by providing
refinancing facility for the successful running of the public Distribution system in the state.
The TNSC Bank was formed in the year in which the co-operative movement of
Tamil Nadu was formed. The TNSC Bank has got license from Reserve Bank of India to carry on
the Banking business. It has been under closely supervised by NABARD as per guideline.
REGISTRATION AND COMMENCEMENT
The TNSC Bank Ltd was registered on 23rd November 1905 and started
functioning on 26th November 1905. The bank has completed 105 years and entered into the 106th
year of useful service to the farmers and weavers of Tamil Nadu by extending the require credit
though the various Co-operative Banks, primary Agricultural Co-operative Banks and primary
weaver’s Co-operative societies. The bank was included in the second schedule of RBI in July
1966 and licensed in August, 1972.
STRUCTURE OF APEX COOPERATIVE BANK
STATE LEVEL
DISTRICT LEVEL
PRIMARY LEVEL
At the grass root level (primary level), there are 4010 primary Agricultural co-
operative banks (PACBs) and functioning at village level.
At the district level, there are 23 central co-operative Banks (CCBs) are
functioning in various places of the districts concerned.
At state level, there are 22 State Apex co-operative Bank functioning
PROCESS OF FINANCING
APEX BANK
DCCBs
PACBs
FARMERS
ORGANISATION CHART
SPECIAL OFFICER
GENERAL MANAGER GENERAL MANAGER GENERAL MANAGER

(Administration) (advances) (Banking)
DUPUTY DUPUTY DUPUTY DUPUTY DUPUTY

GENERAL GENERAL GENERAL GENERAL GENERAL
MANAGER MANAGER MANAGER MANAGER MANAGER
(Administration) (ESTATE) (ADVANCES) (DAP) (BBKG)
ASST. ASST. ASST. ASST. ASST. ASST. ASST.

GENERAL GENERAL GENERAL GENERAL GENERAL GENERAL GENERAL
MANAGER MANAGER MANAGER MANAGER MANAGER MANAGER MANAGER
(ADMIN) (ESTATE) (AGRL.) (NON- (I.T) (L.A.) (BKG.)
AGRL.)
Board, Estate, Agri. Credit Non- Finance & Recovery Banking
Planning Stationery, (policy & Agri., Investment, Cell, In Dept. at
& Branch Operation) Credit, CPPS and Inspection, H.O.
Development Opening, Hand loom Rural RMC. Audit, DAP, Including
HRD, Tapal, Records. Finance & Project Vigilance sanctioning
Bank assurance. ACS Finance, Cell, of loans,
(Statistics) WDC. Internal Safe Deposit
Audit Locker,
Committee Branch
& Tax Banking.
Planning
BRANCHES
The TNSC Bank is catering to the needs of the public in Chennai through its
network of 44 branches and 1 extension counter situated in and around the city.
MANAGEMENT
A Special Officer in the cadre of Additional Registrar of Co-operative Societies is

appointed by the Government of Tamil Nadu. He is Chief Executive Officer of the bank and
looks after the day to day affairs of the bank.
FACILITIES PROVIDED BY THE BANK
 Issues of D.D
 Collection of bills
 Issue letter of credit
 Letter of guarantee and
 ATM
SCHEMES
 Short term Seasonal Agricultural Operation (ST-SAO)

Example: Crop loan.
 Medium term loan (Non-agricultural loan)
Example: Dairy development loan, jewel loan, etc.
PRODUCTS OF THE BANK
 Savings Bank
 Current deposit
 Recurring deposit
 Cash deposit
 NRO/NRE Account and
 Safe deposit locker facility.
BORROWINGS
The TNSC Bank is getting refinance by way of borrowings from
 NABARD for extending credit facilities to the farmers for the short-term Agricultural
Operations and Medium-term loans through DCCB’s.
 SIDBI for extending credit facilities to the weavers finance the DCCB’s for extending
credit facilities for small scale industries from SIDBI.
 NCDC (National Co-operative Development Co-operation) and NHFDC (National
Handicapped Finance Development Corporation) for financing for the development for
physically challenged persons through DCCB’s.
INVESTMENTS
The TNSC Bank Ltd has to make investment in government approved securities
for the statutory liquidity ratio (SLR) purpose. The bank has been investing its funds in the
central government/state section to deal with treasury operations on its behalf as well as its
affiliates, viz, DCCBs and urban Co-operative Banks. The Banks investments in government
securities (both central and state), bounds of the NABARD, IDBI, SIDBI, TNEB and trustee
securities shares etc., aggregated to Rs.1614.57 crores as on 31.03.2010 as against Rs.1458.51
crores as on 31.03.2009.
LOANS AND ADVANCES
Through DCCB’s TNSC Bank Ltd have been extending credit facilities to the
PACBs for short-term/ medium-term agricultural purposes. Depending upon the needs of the
farmers, the bank has been extending credit facilities through the above channel for the allied
activities of farmers like purchasing milk animals, sheep rearing, poultry farming, bullock carts
and sericulture at lesser interest rate.
BEST PERFORMANCE AWARDS
The National Federation of State Co-operative Banks Ltd (NAFSCOB) has

instituted a scheme of performance awards to Apex Bank, since 1982-83. It may be noted that
the Bank has been getting award from the NAFSCOB continuously from 1985-2005 as detailed
below.
YEAR AWARDS
1985 – 86 THIRD PRICE FOR OVERALL PERFORMANCE
1986 – 87 SECOND PRICE FOR OVERALL PERFORMANCE
1987 – 88 THIRD PRICE FOR OVERALL PERFORMANCE
1989 – 90 Special award for outstanding performance under “SOCIAL GOALS
DEVELOPMENT “
1991 – 92 FIRST PRICE FOR OVERALL PERFORMANCE
1992 – 93 Special award for outstanding performance under “SOCIAL GOALS
DEVELOPMENT “
1993 – 94 Special award for outstanding performance under “OPERATIONAL
EFFICIENCY“
2003 – 04 SPECIAL AWARD FOR ‘AIMAS ‘
The NAFSCOB has selected this Bank and Awarded SPECIAL PRIZE for Best
Performance under “ALL INDIA MUTUAL ARRANGEMENT SCHEME” for 1996-97, 1997-
98 and 1999-2000. Best performance award under the above scheme was won by our Bank for
the year 2001-02, 2003-04 2004-05 also. NHFDC has awarded our bank NATIONAL AWARD
for our performance in the development of handicapped during 2005-06. For the year 2006-07
also bank has been awarded ‘BEST PERFORMANCE’ award by the government of India
1.3PRESENT STATUS OF THE INDUSTRY:

The cooperative credit structure in India is almost a century old. The cooperatives
were the only institutions providing institutional credit to agriculture till the commercial banks
emerged on the scene in a big way, particularly, after their nationalization in 1969 and social
banking became their major thrust. Until the late sixties, farmers and the rural borrowers could
look to only one institutional credit agency in the cooperative sector to meet all their credit
needs whether it related to seasonal agricultural operations, investment in land or redemption
of debts. For historical reasons, two parallel wings of cooperative credit institutions have come
into existence and developed, one for purveying short-term and medium term credit to the
cultivators and the other for dispensing long-term credit at first for debt redemption and
subsequently for investment in agriculture. Cooperative credit institutions have been accredited
with playing a significant role in the deployment of credit for agriculture and rural sector.
Credit cooperatives today cover 69 per cent of the rural credit outlets and their share in rural
credit works out to about 45 per cent of the total credit for rural sector in the country. In
purveying production and investment credit, it accounts for 57 per cent and 29 per cent,
respectively.
1.4GROWTH AND DEVELOPMENT OF INDUSTRY

The exponential growth of Co-operative banks is attributed mainly to their much
better contacts with the local people, personal interaction with customers, and their ability to
catch the nerve of the local clientele. The total deposits and lending’s of Co-operative banks
are much more than the Old Private Sector Banks and the New Private Sector Banks. With
gradual growth and also given Philip with the economic boom, urban banking sector received
tremendous boost and started diversifying its credit portfolio. Besides giving traditional
lending activity meeting the credit requirements of their customers they started catering to
various sorts of customer’s viz., self-employed, small businessmen, industries, house finance,
consumer finance, personal finance etc.
1.5FUTURE OF THE INDUSTRY

 Cooperative banks are unique in terms of their structure, clientele and
credit delivery. Despite their inherent weaknesses in terms of low capital,
poor management and intrusive policies of State, cooperative banks in
India have successfully weathered several challenges and continued to
grow in the competitive environment. RBI has initiated several policy
measures to strengthen the cooperative banking sector by gradually
introducing the prudential norms and regulatory prescriptions on par with
commercial banks. Cooperative banks have shown keen interest in
diversifying their business and broad-basing their clientele. Changes in the
existing legal framework, supportive regulatory environment, adoption of
technology and re-orientation of business strategy can act as enablers for
cooperative banks to contribute more meaningfully in the equitable
economic growth across regions through their delivery model.
II RESEARCH DESIGN
REVIEW OF LITERATURE
 The review of past studies helps any research to define the scope, concept and working
definitions and also the formulation of imperial models. Thus it enhances the knowledge of the
researcher and makes his effort highly productive. Hence a brief review of literature related to
the subject of the present study is presented in this chapter.
 Dr. K. Thirupura sundhari (2002) the financial performance analysis is largely a study
of relationships among various financial factors. The analysis and interpretation of financial
performance is a method of measuring and comparing the financial performance of the firm
and it helps to bring change in the flaws and also forecast future earnings and ability to pay.
This helps in the improvement of the organization. But the time duration provided was not
sufficient enough to conduct depth study.
 According to John. N. Meyer, “The financial statement provides summary of accounts

of business enterprise, the balance sheet reflecting the assets, liabilities and capital as on
certain date and income statement showing the result of operation during certain period”
 According to Pandey, I.M(2005 Financial Management) profitability is the ability of

an entity to earn income. It can be assessed by computing various relevant measures including
ratios of net profit to assets, the rate earned to total assets etc.
 Leonard. A .Jackson & H.G. Parsa (2009) proposes that a firm can be assessed and
assigned a score based on its financial performance on predetermined financial criteria.
STATEMENT OF THE PROBLEM
 The aim of the project is to study the financial performance of the TNSC Bank.
 The study gives an insight into the banks overall performance.
 This study would be helpful for the bank to make some improvement and be more
innovative.
OBJECTIVE OF THE STUDY
PRIMARY OBJECTIVE
To analyze the financial performance of TNSC Bank from 2006 to 2010 using
various tools of financial statement analysis.
SECONDARY OBJECTIVES
 To analyze the financial and profitability trends of the bank.

 To compare the financial performance of the bank for the period of 5 years using
tools of financial analysis.
 To understand the banking operations at TNSC Bank.
 Procedures employed in the bank connected with sources of funds and application of
funds.
 To understand the recent trends in the banking sector.
 To offer suitable suggestions, if any in the light of findings emerging.
2.2 SCOPE OF THE STUDY
 This research helps the TNSC Bank to understand the financial trends as well as areas of
the draft contribution to crisis. The bank can utilize data to improve and rework on their
means and methods of allocation of financial resources for smooth and efficient
performance.
 The main objective of the current study is to understand and identify the financial
performance of TNSC Bank for the last five years i.e., 2005-10.
 The analysis will be carried based on the financial tools like Ration analysis, comparative
financial statements, common-size Financial Statements and Trend Analysis.
 The financial position of the company reveals the profitability and credit worthiness.
2.3 NEED OF THE STUDY
 The theoretical background about any topic would not be useful for anyone unless it is
done practically.
 So the important of any project is to gain practical exposure and proper insight on the
topic under study.
 A study on financial performance of TNSC Bank.
 Analysis and Interpretation through compilation of the account department and revenue
income and expenditure.
 So as to afford full diagnosis of the profitability of the financial soundness of the
business.
2.4 LIMITATION OF THE STUDY
 The present study is concerned at TNSC Bank, Chennai only.

 The study is restricted to availability of facts &figure relating to the bank’s annual
reports.
 The period of coverage of the study is restricted to 5 years.
 The time duration provided was not sufficient enough to conduct in-depth study.
SOURCES OF DATA
4.1 RESEARCH METHODOLOGY
RESEARCH
 Systematic and organized effort to investigate a scientific problem.

 Identify the problem.
 Gather information.
 Analyze the data.
 Take corrective action and solve the problem.
RESEARCH DESIGN
The research design is the arrangement of condition for collection and analysis of
data in a summer which may result in an economy in procedure. It stands for collection of the
relevant data and the technique to be used in the analysis, keeping in view the objectives of the
research and the availability of time.
TYPES OF RESEARCH DESIGN

The research design is the arrangement of condition for collection and analysis of
data in a summer which may result in an economy in procedure. It stands for collection of the
relevant data and the technique to be used in the analysis, keeping in view the objectives of the
research and the availability of time.
TYPES OF RESEARCH DESIGN
There are two types of Research Design
1. Exploratory Research Design.

2. Descriptive Research Design.
PLACE OF THE STUDY
TAMIL NADU STATE APEX CO-OPERATIVE BANK CHENNAI.
PERIOD OF THE STUDY
The study was made for the period of accounting year 20013-14 to 2016-17
DATA COLLECTION METHOD
Selective of appropriate method, the researcher should keep in view of the following factors:
 Nature, scope and objective of enquiry

 Availability of funds
 Time factors
 There are two methods for collection of data.
 Primary data collection method
 Secondary data collection method
PRIMARY DATA COLLECTON METHOD
The primary data were collected through personal interviews with managers, Supervisors and
holding discussion with all parties concerned of TNSC Bank.
SECONDARY DATA COLLECTION METHOD

The secondary data is the one which already exists. It includes the following.
 Annual report of the bank

 Audit report
 Manuals and office records
 Newspapers and magazine
TYPE OF PROJECT
DESCRIPTIVE RESEARCH
The research design undertaken for the study is ‘Descriptive research design’.
These designs are determined for some specific purpose.
TOOLS AND TECHNIQUES OF ANALYSIS
The data from the report have been analyzed to evaluate the performance of the
bank. For analyzing the financial performance of Tamil Nadu State Apex Co-operative Bank, the
tools adopted are:
 COMPARATTIVE FINANCIAL STATEMENT ANALYSIS

 Comparative balance sheet
 COMMON-SIZE FINANCAL STATE MENT ANALYSIS
 Common size balance sheet
RATIO ANALYSIS
 Advance to total asset ratio

 Cash position ratio
 Current ration
 Debtors to total current assets ration
 Net profit ratio
 Earnings per share
 Profit to reserve ratio
 Statutory reserve ration
 Investment to asset ratio
 TREND ANALYSIS
LIMATIONS OF FINANCIAL STATEMENT ANALYSIS
Financial analysis is a powerful mechanism which helps in ascertaining the

strength and weakness in the operation and financial position of an enterprise. The limitation are
as follows.
 Financial analysis is a means to an end and not the end itself.

 The efforts of price level changes over the period.
 Financial statements are essentially interim reports.
 Financial statements do not depict those facts which cannot be expressed in terms of
money.
 Financial statements are based on accounting concepts and convention which financial
position as disclosed b these statements may not realistic.
DATA ANALYSIS AND INTERPRETATION
RATIO ANALYSIS
ADVANCES TO TOTAL ASSET RATIO
This is the ratio of total advances to total assets. This ratio indicates a bank’s
aggressiveness in lending which ultimately results in better profitability. Higher ratio
advances/deposit (assets) is preferred to lower one. Total advances also include receivables.
The value total asset is exchanging the revaluation of all the assets.
Advances to Total Asset ratio = (Advances/Total assets)*100
YEAR ADVANCES TOTAL RATIO

(Rs. In crores) ASSETS (%)
(Rs. In crores)
2013 – 14 8440.29 14512.28 58.15
2014 – 15 8082.00 13377.61 60.41
2015 – 16 7353.07 14401.13 51.06
2016 – 17 5589.96 16514.70 33.84
INTERPRETATION
The advances to total asset ratio of TNSC bank has decreased from 51.06% during
2015-16 to 33.84% during 2016-17.
CASH POSITION RATIO
The cash position ratio is the most conservative liquidity ratio for judging the
financial stability of the company on a short-term basis. To calculate cash ratio, add the value
of the company’s cash and short-term marketable securities and to divide the total by current
liabilities. This ratio shows the ability of the company’s cash on hand to find short-term
liabilities. This ratio is also called “Absolute liquid ratio”.
Cash Position Ratio = (cash/total current liabilities)
YEAR CASH TOTAL RATIO

(Rs. In crores) CURRENT (%)
LIABILITIES
(Rs. In crores)
2013 – 14 2506.63 307.70 8.14
2014 – 15 2059.28 348.04 5.19
2015 – 16 2451.76 213.60 1.14
2016 – 17 2287.20 795.92 2.87
INTERPRETATION
The cash position ratio has increased 1.14 from during 2015-16 to 2.87 during 2016-
17.
CURRENT RATIO
Current ratio brings out the relationship between current assets and current liabilities.
It is an indication of an industry’s ability to meet short-term debt obligations. The higher the
ratio, the more liquid the industry is. This ratio is also known as “Working Capital Ratio or
Liquidity Ratio or Cash ratio or Quick Ratio”. The ideal ratio is 2:1. It is calculated by dividing
the total of the current assets by total of the current liabilities.
Current Ratio = (Current assets/Current liabilities)
YEAR CURRENT CURRENT RATIO

ASSETSS LIABIITIES (%)
(Rs. In crores) (Rs. In crores)
2013 – 14 14501.65 307.70 47.12
2014 – 15 13368.08 348.04 38.40
2015 – 16 14221.95 419.71 33.88
2016 – 17 14884.26 787.8 18.90
INTERPRETATION
The current ratio of TNSC bank has decreased from 33.88 during 2015-16 to 18.90 in
2016-17.
DEBTORS TO TOTAL CURRENT ASSETS RATIO
The analysis of the quantum of debtors shows the type of credit policy either liberal
or stringent followed by the company.
Debtors to Total Asset Ratio = (Debtors/ Total current asset)*100
YEAR DEBTORS TOTAL RATIO

(Rs. In crores) CURRENT (%)
ASSETS
(Rs. In crores)
2013 – 14 9.20 14372.47 0.06
2014 – 15 129.53 85925.25 0.15
2015 – 16 84.37 14221.95 0.59
2016 – 17 9.75 14884.26 0.06
INTERPRETATION
The debtors to total current assets ratio of TNCS bank has
NET PROFIT RATIO
Net profit is the ratio of net profit to the loan & advances. It is expressed in
percentage. It is a measure of overall profitability and hence proprietors. This indicates the
capacity of the bank to face adverse economic conditions. Higher the ratio, higher is the
profitability.
Net Profit ratio = (Net profit/ Loans& Advances)*100
YEAR NET PROFIT LOAN & RATIO

(Rs. In crores) ADVANCE (%)
(Rs. In crores)
2013 – 14 32.22 8376.81 0.38
2014 – 15 41.38 7481.00 0.56
2015 – 2016 43.30 7353.07 0.58
2016 – 2017 43.69 5589.96 0.78
INTERPRETATION
The net profit ratio of TNSC bank has increased from 0.58 during 2015-16 to 0.78 in
2016-17.
PROFIT TO RESERVE RATIO
This ratio is an excellent tool to find out the relationship between profit and reserves.
Profit generally is making of gain in business, activities for the n=benefit of the owners of the
business, in asset-based lending; a reserve is the difference between the value of the collateral
and the amount lent.
Reserves = (Total interest-overdue interest reserves)
Profit to Reserve ratio = (Profit/ reserves)*100
YEAR PROFIT RESERVES RATIO

(Rs. in crores) (Rs. In crores) (%)
2013 – 14 32.22 773.52 4.17
2014 – 15 41.38 808.69 5.11
2015-2016 43.30 751.97 5.77
2016-2017 43.69 778.65 5.60
INTERPRETATION
The profit to reserve ratio of TNSC bank has decreased from 5.77% during 2015-16
to 5.60% in 2016-17.
STATUTORY RESERVE RATIO
The statutory reserve ratio is the savings of the bank which will be used for lending as loans
and advances. Higher the ratio, greater is the profit.
Statutory Reserve Ratio = (Statutory reserve/Total reserve)*100
YEAR STATUTORY TOTAL RESERVE RATIO

RESERVE (Rs. in crores) (%)
(Rs. in crores)
2013 – 14 226.71 720.05 31.49
2014 – 15 235.10 719.42 32.67
2015 – 16 245.82 751.97 32.69
2016 – 17 256.70 778.65 32.96
INTERPRETATION
The statutory reserve ratio of TNSC bank has increased from 32.69% during 2015-16
to 32.96% during 2016-17.
TOTAL INVESTENT ANALYSIS
Total investment t total asset indicates the extent of deployment of assets in

investment as against in advances. This ratio is used as a toll to measure the percentage of total
asset locked up in investment, which, by conventional definition doesn’t form part of the core
income of the bank. This ratio is calculated by dividing total investment by total assets of the
bank. A higher ratio means that the bank has conservatively kept a high cushion of investment
to guard against NPAs. However this affects its profitability adversely.
Total investment to Total Asset Ratio = (Total Investment/Total Asset)*100
YEAR TOTAL TOTAL ASSETS RATIO

INVESTMENT (Rs. in crores) (%)
(Rs. in crores)
2013 – 14 2942.14 14512.28 20.28
2014 – 15 2831.04 13377.61 21.17
2015 – 16 3154.46 14401.31 21.90
2016 – 17 3632.19 16514.69 21.99
INTERPRETATION
The total investment to total asset ratio of TNSC bank has increased by 0.9% from
21.90% during 2015-16 to 21.99% in 2016-17.
TURNOVER RATIO
CAPITAL TURNOVER RATIO
Capital turnover ratio is used to calculate the rate of return on common equity and it
is a measure of how well a bank uses its equity to generate revenue. The higher the ratio is, the
more efficiency the bank is utilizing its capital. It is known as equity turnover.
Capital turnover ratio = (Loans & Advances / Capital Employed)
YEAR LOANS & CAPITAL RATIO

ADVANCES (Rs. in crores) (%)
(Rs. in crores)
2013 – 14 8440.29 1178.51 7.16
2014 – 15 8082 1191.62 6.78
2015 – 16 7353.07 1196.47 6.14
2016 – 17 5589.96 1200.94 4.65
INTERPRETATION
The capital turnover ratio of TNSC bank has fluctuated over the years from 7.16% in
2013-14 to 4.65% in 2016-17.
OVERALL PROFITABILITY RATIO
This ratio is also called as ‘Return on investment’ (ROI) or ‘Return on Capital

Employed’ (ROCE). These ratios show the relationships between profit and sales.
Overall Profitability Ratio = Net profit/Total assets
YEAR NET PROFIT TOTAL ASSETS RATIO

(in crores) (in crores) (%)
2013 – 14 32.21 14512.28 0.31
2014 – 15 41.38 13377.60 0.31
2015 – 16 43.30 14401.31 0.30
2016 – 17 43.69 16514.69 0.26
INTERPRETATION
The overall profitability ratio of TNSC bank has decreased from 0.30% during 2015-
16 to 0.26 % in 2016-17.
TABLE SHOWING COMPARATIVE BALANCE SHEET AS ON 2012-13 & 2013-14
(Rs.in Crores)
PARTICULARS 2013 2014 INCREASE/ INCREASE/

DECREASE DECREASE
(AMOUNT) (%)
ASSETS
CURRENT
ASSETS
Cash on hand & 585.69 2506.62 1920.93 327.97
balances with
banks
Money at call 451.53 471.58 20.05 4.44
Investments 2325.57 2942.13 616.56 26.51
Advances 9459.61 8440.29 (1019.32) (10.77)
Other assets 73.16 11.85 (61.30) (83.79)
TOTAL 12895.56 14372.47 1476.92 263.39
CURRENT
ASSETS(A)
TOTAL FIXED 10.78 10.63 (1.43) (1.32)
ASSETS(B)
TOTAL 12906.34 14383.1 1475.49
ASSETS =(A+B)

DECREASE DECREASE
(AMOUNT) (%)
LIABILITIES
CURRENT
LIABILITIES
Interest Payable 159.82 183.46 (23.63) (14.78)
Other Liabilities 97.77 116.18 (18.40) (18.82)
FIXED
LIABILITIES
Capital 1080.82 1178.51 (97.68) 9.03
Reserve & 651.42 720.04 (68.62) 10.53
Surplus
Deposits and 7788.12 9507.32 (1719.20) (22.07)
other accounts
Borrowings 3139.53 2766.17 373.36 11.89
TOTAL 257.59 299.64 (42.03) (16.31)
CURRENT
LIABILITIES(A)
TOTAL FIXED 12659.89 14172.04 1843.47 14.56
LIABILITIES(B)
TOTAL 12917.48 14471.68 1801.44
LIABILITIES =
(A+B)
TABLE SHOWING COMPARATIVE BALANCE SHEET AS ON 2014 & 2015
(Rs. In Crores )
DECREASE DECREASE
(AMOUNT) (%)
ASSETS
CURRENT
ASSETS
Cash on hand & 2506.62 2059.28 (4.47) (17.84)
balances with
banks
Money at call 471.58 75.00 (3.96) (84.09)
Investments 2942.13 2831.04 (1.11) (3.77)
Advances 8440.29 80820.04 (3.58) (4.24)
Other assets 11.85 139.92 128.06 1080.07
TOTAL 14372.47 85925.25 114.94
CURRENT
ASSETS(A)
TOTAL FIXED 10.63 9.52 (1.10) (10.40)
ASSETS(B)
TOTAL 143763.1 85934.77 113.84
ASSETS =(A+B)

DECREASE DECREASE
(AMOUNT) (%)
LIABILITIES
CURRENT
LIABILITIES
Interest Payable 183.46 155.93 27.52 15
FIXED
LIABILITIES
Capital 1178.51 1191.61 (13.10) (1.11)
Reserve & 720.04 719.41 0.63 0.09
Surplus
Deposits and 9507.32 7767.78 1.73 18.29
other accounts
Borrowings 2766.17 3309.23 (543.06) (19.63)
TOTAL 299.64 339.98 (40.35) (13.46)
CURRENT
LIABILITIES(A)
TOTAL FIXED 14172.04 12988.03 (553.8) (3.90)
LIABILITIES(B)
TOTAL 14471.68 13328.01 (513.45)
LIABILITIES =
(A+B)
(Rs. In Crores )

DECREASE DECREASE
(AMOUNT) (%)
ASSETS
CURRENT
ASSETS
Cash on hand & 2059.28 2451.76 392.48 19.05
balances with
banks
Money at call 75.00 1167.91 1.09 1457.22
Investments 2831.04 3154.46 23.42 11.42
Advances 80820.04 7353.07 (7.28) (9.01)
Other assets 139.92 94.75 45.17 32.28
TOTAL 85925.28 14221.95 454.88 1528.98
CURRENT
ASSETS(A)
TOTAL FIXED 9.52 9.68 0.54 1.61
ASSETS(B)
TOTAL 85934.8 14231.63 455.42 1530.59
ASSETS =(A+B)

DECREASE DECREASE
(AMOUNT) (%)
LIABILITIES
CURRENT
LIABILITIES
Interest Payable 155.93 206.11 (50.17) (32.17)
FIXED
LIABILITIES
Capital 1191.61 1196.47 (4.86) (0.40)
Reserve & 719.41 751.97 (32.56) (4.52)
Surplus
Deposits and 7767.78 8212.37 (44.58) (0.57)
other accounts
Borrowings 3309.23 3768.71 (59.47) (1.79)
TOTAL 339.98 419.71 (79.71) (23.44)
CURRENT
LIABILITIES(A)
TOTAL FIXED 12988.03 13929.52 (141.47) (1.08)
LIABILITIES(B)
TOTAL 13328.01 14349.23 (221.18)
LIABILITIES =
(A+B)
(Rs. In Crores )

DECREASE DECREASE
(AMOUNT) (%)
ASSETS
CURRENT
ASSETS
Cash on hand & 2451.76 2287.20 (1.64) (0.067)
balances with
banks
Money at call 1167.91 2398.96 1231.04 105.40
Investments 3154.46 3632.19 477.72 15.14
Advances 7353.07 5589.96 1763.11 23.98
Other assets 94.75 975.95 881.20 929.9
TOTAL 14221.95 14884.26 4351.43 30.59
CURRENT
ASSETS(A)
TOTAL FIXED 9.68 9.24 (0.43) (4.52)
ASSETS(B)
TOTAL 14231.63 14893.5 4351
ASSETS =(A+B)

DECREASE DECREASE
(AMOUNT) (%)
LIABILITIES
CURRENT
LIABILITIES
Interest Payable 206.11 188.05 18.06 8.76
FIXED
LIABILITIES
Capital 1196.47 312.03 (884.44) (73.92)
Reserve & 751.97 778.65 (26.68) (3.54)
Surplus
Deposits and 8212.37 9090.32 (877.94) (10.69)
other accounts
Borrowings 3768.71 4605.04 (36.32) (17)
TOTAL 419.71 787.8 (368.09) (87.70)
CURRENT
LIABILITIES(A)
TOTAL FIXED 13929.52 14786.04 (1825.38) (13.10)
LIABILITIES(B)
TOTAL 14349.23 15573.84 (2139.47)
LIABILITIES =
(A+B)
5.1 FINDINGS
 Advance to total asset ratio

Data Analysis and Interpretation

Hochgeladen von

Dokumentinformationen

Copyright

Verfügbare Formate

Dieses Dokument teilen

Dokument teilen oder einbetten

Freigabeoptionen

Stufen Sie dieses Dokument als nützlich ein?

Sind diese Inhalte unangemessen?

Copyright:

Verfügbare Formate

Data Analysis and Interpretation

Hochgeladen von

Copyright:

Verfügbare Formate

CONTENTS

CHAPTER CONTENT PAGE

TABLE TITLE OF THE TABLE PAGE

LIST OF PIE DIAGRAMS

DIAGRAM DIAGRAM TITLE PAGE

1.1 GENERAL INTRODUCTION

Analysis of financial performance is a collection of data organized according to

 Profit and loss account

TYPES OF FINANCIAL ANALYSIS

The process of financial statement analysis is of different types. The process of

 On the basis of material used

ON THE BASIS OF MATERIAL USED

The analysis is based on published financial statements of a firm. Outsiders have

TECHNIQUES OF FINANCIAL ANALYSIS

A financial analyst can adopt one or more of the following techniques/tools of

 Comparative Financial Statements

COMPARATIVE FINANCIAL STATEMENTS

This is another technique used in financial statement analysis. These statements

 Comparative statements helps the analyst to evaluate the performance of the

COMMON SIZE FINANCIAL STATEMENTS

The percentage so calculated is compared with corresponding percentages in other

Ration Analysis is a powerful tool of financial analysis. A ratio is defined as “The

Ratios may be classified into the four important categories.

 Aids to measure general efficiency

 There are various advantages of financial statement analysis

1.2. INDUSTRY PROFILE

CO-OPERATIVE BANKS IN INDIA

CO-OPERATIVE BANKS IN INDIA FINANCE RURAL AREAS UNDER

CO-OPERATIVE BANKS IN DIA FINANCE URBAN AREAS UNDER

WHY CO-OPERATIVE BANK WAS FORMED

1.2 INDUSTRIAL BACKGROUND

REGISTRATION AND COMMENCEMENT

STRUCTURE OF APEX COOPERATIVE BANK

At state level, there are 22 State Apex co-operative Bank functioning

GENERAL MANAGER GENERAL MANAGER GENERAL MANAGER

DUPUTY DUPUTY DUPUTY DUPUTY DUPUTY

ASST. ASST. ASST. ASST. ASST. ASST. ASST.

A Special Officer in the cadre of Additional Registrar of Co-operative Societies is

FACILITIES PROVIDED BY THE BANK

 Short term Seasonal Agricultural Operation (ST-SAO)

PRODUCTS OF THE BANK

The TNSC Bank is getting refinance by way of borrowings from

LOANS AND ADVANCES

BEST PERFORMANCE AWARDS

The National Federation of State Co-operative Banks Ltd (NAFSCOB) has

1.3PRESENT STATUS OF THE INDUSTRY:

1.4GROWTH AND DEVELOPMENT OF INDUSTRY

1.5FUTURE OF THE INDUSTRY

 According to John. N. Meyer, “The financial statement provides summary of accounts

 According to Pandey, I.M(2005 Financial Management) profitability is the ability of

STATEMENT OF THE PROBLEM

OBJECTIVE OF THE STUDY

 To analyze the financial and profitability trends of the bank.

2.2 SCOPE OF THE STUDY

2.3 NEED OF THE STUDY

2.4 LIMITATION OF THE STUDY

 The present study is concerned at TNSC Bank, Chennai only.

4.1 RESEARCH METHODOLOGY

 Systematic and organized effort to investigate a scientific problem.

TYPES OF RESEARCH DESIGN

TYPES OF RESEARCH DESIGN

There are two types of Research Design

1. Exploratory Research Design.

PLACE OF THE STUDY