QIS & MSOD

Sujit
Kumar
(P301414CMG471)
Manish
(P301414CMG439)
Apoorva
(P301414CMG422)
Adarsh
(P301414CMG411)
Shashi
(P301414CMG461)

Jena
Kumar
Sharma
Chhajed
Prabha

Agenda
Introduction
Quarterly Information System
Scrutiny of QIS
Monthly Select Operational Data
MSOD Procedure
Conclusion & Takeaway

Introduction

QIS(Quarterly Information System) Report needs

to
be
submitted by a company, firm or any business
entity
to
the
bank from which it has borrowed money (Term
Loan, Working Capital, Cash Credit, etc.)

This report has to be submitted to the bank in the

format
prescribed/provided by them to keep them
informed about the performance & position of the
business entity.

The due date or periodicity will be communicated

by the concerned bank to the borrower.

Most of the Banks have made QIS and MSOD

mandatory for Working Capital limits of Rs.1

Quarterly Information System

The whole picture about the quarterly and half

yearly performance of the firm is presented in
three forms.
All the items included in these forms are taken
from the budgeted statements, profit and loss
account and balance sheet.

QIS

Form I

Form II

Form III

Quarterly Information
System(Contd.)

1.

Q.I.S FORM I:

It includes the estimated (budgeted) amount of

related figures and is submitted to the bank at
the beginning of every quarter.

1.

Q.I.S FORM II:

This form is to be submitted at the end of every

quarter, which involves the comparisons between
the estimated amounts with the actual targets
achieved. deviation of up to 10% is OK, Any thing
beyond this requires detailed scrutiny

1.

Q.I.S FORM III:

It involves the comparison between the actual &

the estimated figures as well as birds eye view
about the level of rise/fall in the various items
covered in Q.I.S FORM I & II. It is half yearly
operating/fund flow statement.

Submission of QIS Form

Format

Contents

Schedule of
Submission

QIS I

Estimate for the

ensuring quarter
within projected level
of production, sales,
current assets
&current liabilities
including bank
borrowings

To be submitted in
the week preceding
the commencement
of the quarter to
which the
statement relates.

QIS II

Performance during
quarter vis--vis the
estimate as given in
the form I

Within 6 weeks
from the close of
the quarter to
which the
statement relates

QIS III

Half yearly operation

and fund flow
statements

Within a month
from the close of
the half year.

Scrutiny for QIS

1.
2.
3.
.
1.
2.
.
1.
2.
3.
7

QIS I
Quantity and value of percentage of annual
projection , seasonality of activity.
Capacity utilization, BEP and Margin of Safety.
CMA Projections and mismatch.
QIS II
Classification of current assets and liabilities as
per date.
Stock statement.
QIS III
End use of funds.
Management of working capital
Quality of liquidity management.

Introduction - MSOD

Prescribed by RBI in 1979

For the borrower enjoying working capital limit of

INR 50 lakhs and above

MSOD gives key performance figures of a unit on

monthly basis.

MSOD includes sales, stock, receivable, short

term bank borrowing and gross profit.

Useful tool of credit monitoring for the banker.

Monthly Select Operational

Data

All the firms on monthly basis prepare monthly

select operational data.

Main purpose of preparing MSOD is to show

companys performance and progress to the
banks.

It is basically a monitoring tool for the bank for

analyzing the performance of the firms and the
utilization of the bank borrowings.

MSOD (Monthly Select Operational Data) gives

details of monthly Production (Quantity), Sales
(Quantity and Value), Receivables (Domestic and
Export), Sundry Creditors, Short Term Borrowings
from Banks and others and details of Stock
(component wise) as at the beginning and end of
the month.

Purpose

To know performance of units in area like

production, sales, purchase, and gross profit in
particular month against target/projections.

To know position of short term bank borrowing as

against current assets built up and to know the
extent of unpaid stock.

To assess the end term use of short term funds

and shenanigans.

To do trade analysis on the performance of

business unit.

For close monitoring and to frame suitable

monitoring action plan if required.

How to read MSOD

MSOD return has six parts alphabetically

numbered from A to G

Part A

It is regarding projection of borrower in

current accounting year.
It provides the estimated gross sale, net sale
and production of the unit

Part B

It is regarding sales
The credit summation in the account of
customer with bank should be compare with
gross sales figures to check for variations.

How to read MSOD (cond)

Part C

It is regarding receivables
Comparing the receivable figures with sales
figures for any variation in receivable.

Part D

It is regarding sundry creditors on purchase

Here comparison is with purchase of RM and it
should get tally with two months purchase.

How to read MSOD (cond)

Part E

It is regarding short term bank borrowing i.e

WC.
Examine the paid stock position with the stock
statement fig submitted for same month.

Part F

It is regarding Stock.
Production should tally with stock IN and sales
should with stock out.

Bankers take away

MSOD is to be submitted by borrower along with

monthly stock /book debt statement.

Stock of RM, spare should be appx tally to the

purchase of the month which could correlate
with drawls in the account.

Study of MSOD statements help bankers to know

whether really activity has taken place in the
unit during the month.

Receivable outstanding against sales shows the

level of credit extended by borrower to its buyer.

Level of Paid stock can be verified

Conclusion

15

Scrutiny of QIS & MSOD data is essential for

effective credit administration.

Helps in assessment of WC credit limits.

Effective monitoring of advance by evaluating the

performance of borrowing party.

Prevent siphoning of funds.

For banker it is the quick informative sensitizing

data return.

Help in checking the diversion of working capital

funds.

Maintain healthy credit culture.

THANK YOU

16