The Co-operative banks has a history of almost 100 years.

The Co-operative banks are an important constituent of the Indian Financial System, judging by the role assigned to them, the expectations they are supposed to fulfil, their number, and the number of offices they operate. The co-operative movement originated in the West, but the importance that such banks have assumed in India is rarely paralleled anywhere else in the world. Their role in rural financing continues to be important even today, and their business in the urban areas also has increased phenomenally in recent years mainly due to the sharp increase in the number of primary cooperative banks. While the co-operative banks in rural areas mainly finance agricultural based activities including farming, cattle, milk, hatchery, personal finance etc. along with some small scale industries and self-employment driven activities, the co-operative banks in urban areas mainly finance various categories of people for self-employment, industries, small scale units, home finance, consumer finance, personal finance, etc.

INTRODUCTION

Co-operative banks are an important constituent of the Indian financial system. The Co-operative movement originated in the west, but the importance that such banks have assumed in India is rarely paralleled in the world. Their role in rural financing continues to be important even today, and their business in the urban areas also has increased in recent years mainly due to the sharp increase in the number of co-operative banks.

A Co-operative is voluntary association of members of self-help, catering to the financial on a mutual basis. In India, the co-operative credit movement started with the chief object of catering to the banking and credit requirements of the urban middle class e.g. the small trader or workers, the salaried people with limited fixed

income in urban or semi-urban areas.

The co-operative banking system in India is federal in structure. Structure of co-operative banking system is three-tier structure in India.

1. Primary Credit Structure (PCS's) 2. Central Co-operative Banks (CCB's) 3. State Co-opeative Banks (SCB's) Co-operative banking can divided mainly two types Agricultural sector and Non-Agriculture sector. The DCCB's (District Central Co-operative Banks) have come into existence due to the failure of primary societies to attract required resources in the form of deposits from well to do sections of the village community on one hand and to inspire the habit of thrift and savings among their members to provide strong base on the purpose to give support to farmers and small industries. The objectives of DCCB's.

Their democratic organization and management help in catering better to the local needs, mobilization of resources and recovery of the loan advanced.

They are best suited to guide, supervise and control their societies.

They constitute the basic unit of planning and development of co-operative active at the district level.

In the view of importance of central co-operative banks, the study in undertaken to assess the performance of Warangal District Co-operative Central Bank.

Need for Study :

To examine various techniques of Financial Analysis, help in making . For this different methods are used in the study.

1. Comparative Balance Sheet. 2. Ratio Analysis 3. Trend Analysis The main aim behind the study is to gains practical experience and practical experience and knowledge. Objectives of the Study :

1. To know the financial status of the WDCCB 2. To extract the liquidity position of the WDCCB 3. To find long-term Financial position of the WDCCB 4. To offer conclusions and suitable suggestions. Period of the Study :

The period of the study is confined to five years that is from 2005-2006 to 2009-2010 as that period of study is considerably long and enough to comprise all the changes in the WDCCB, They might be economic and cynical. Limitations of the Study :

1. It is based on only on monetary information and non-monetary factors are ignored.

2. It is only study of interim reports of the concern. 3. it does not consider changes in price level. 4. Some changes in accounts procedure by concern may often make financial analysis misleading. 5. The period of study is limited only for five years that is 2005-2006 to 2009-2010. CHAPTER PLAN : Chapter 1 : Deals with the synopsis and rational study, objectives, data and methodology of the study, period of the study and limitations of the study. Chapter 2 : Deals with introduction about the Co-operative Banks and their origin and growth in India. Chapter 3 : Deals with the profile of the Warangal District Central Co-operative Bank and its progress. Chapter 4 : Deals with the introduction of Financial Statement Technique and over view, Definition and the scope, types of Financial analysis and procedure of statement analysis, methods of financial analysis.

Chapter 5 : Deals with the financial analysis of comparative balance sheet, Ratio analysis and Trend analysis. Chapter 6 : Deals with the conclusions and suggestions.

Co-operative Banks :

Co-operative banks are an important constituent of the Indian financial system, judging by the role assigned to the. The co-operative movement originated in the west, but importance which such banks have assumed in India is rarely paralleled anywhere else in the world. Their role in rural financing continues to be important even today, and their Business in the urban areas also has increased in resent years mainly due to the sharp increase in the number of primary cooperative banks.

A credit co-operative is voluntary association of members for self-help, catering to the financial on a mutual basis. In India, the co-operative credit movement started with the chief object of catering to the banking and credit requirements of the urban middle class e.g. the small trader or businessman, the artisans, or factory worker, the salaried people with limited fixed income in urban or semi-urban areas.

Besides protecting the middle classes and men of modest means from the clutches of the money lenders, the movement is also expected to indicate the habit of thrift and savings amongst the people.

Origin and development :

The urban co-operative credit movement originated in Germany when

Herman Schultz started such societies for the benefit of artisans in the cities. In Italy, the credit of starting such societies goes to Livgi Luzzatti. Encouraged by the success of the urban credit institutions in these countries. Social workers in India began to think in terms as the co-operative as a means of bringing success to middle classes as early as to close of the 19th Century. In India the first credit society was set up in 1889 at Baroda. But no proper attention was paid for its development. The government of India showed the golden seed of the cooperative banking in India in 1904 with introduction of co-operative societies act of

1904. In rural areas as far as agricultural and related activities ware concerned, the supply of credit, particularly, institution credit was woefully in adequate and unorganized money marked agencies, such as money lenders, were providing credit often at exploitatively high rates of interest. The co-operative banks were conceived in order to substitute such agencies, provide adequate short term and long-term institutional credit at reasonable rates of interest and to bring about integration of the unorganized and organized segments of the Indian money market.

Urban co-operative credit societies and bank occupy a prominent place among the agencies supplying credit needs of the people residing in the urban areas. They advance loans mostly to the traders, artisans and salary earners on personal security as well as against gold and silver. The urban banks cater primarily to the needs of the lower and middle-income structure of our society.

Structure of Co-operative Banking System in India :

The Co-operative banking system in India is federal in structure. It has a pyramid type of a three-ties structure constituted by :

1. Primary Credit Structure (PCS's) 2. Central Co-operative Banks (CCB's) 3. State Co-operative Banks (SCB's)

Co-operative banking can be divided into mainly two types agricultural sector and non-agricultural sector. Agricultural sector concerned to mainly rural credit. But non-agricultural sector is totally banks, industrial co-operative banks and employees co-operative different one; it includes urban co-operative society.

Structure of Co-operative Banks Co-operative Bank

RBI

NABARD SCBS SLDBs UCBs

CCBs CLDBs PACs

PLDBs Branches of SLDBs SCBs = State Co-operative Banks SLDBs = State Land Development Banks UCBs = Urban Co-operative Banks or Primary Co-operative Banks CCBs = Central Co-operative Bank CLDBs = Central Land Development Bank PACs = Primary Agricultural Credit Societies PLDBs = Primary Land Development Banks.

2.2 Urban Co-operative Banks : Co-operative credit societies established in urban areas and referred to as

urban co-operative banks. In most states, however, no clear-cut definition of an urban co-operative bank is statutorily followed. Urban co-operative banks usually meet the needs of specific types or groups of members pertaining to a certain trade, profession, community or even locality.

Urban banks almost function like commercial banks in providing essential banking and non-banking agency and utility services.

UCBs are also called as Primary Co-operative Banks (PCBs) by the Reserve Bank. The RBI defines PCB's as small-sized co-operatively organized banking units which operate in metropolitan, urban and semi-urban centers to cater mainly to needs of small borrowers, viz., owners of small scale industrial units, retail traders, professionals and salaried classes.

The RBI is the licensing authority for new banks a Act, Co-operative banks are subject to CRR and liquidity requirements at the level of 3% and 25% respectively at present, they have been advised to lend 60% of their total advances to the priority sectors.

Role of Urban Co-operative Banks :

Urban Co-operative Banks have an important role to play in several respects and some of them are listed below :

First and foremost, they can organize and bring together middle and working classes kin urban and semi-urban areas and inculcate in them the habits of thrift and self-help and acquaint them with the elements of ordinary banking principles.

The mobilization of savings by urban co-operative banks and the consequent drawing of urban resources into the apex and central co-operative banks which are in need of funds to finance the rural, industrial and other functional co-operatives can contribute to general economic development.

By providing credit on reasonable terms to the middle classes they can rescue them from the exploitation of money lenders and others unscrupulous agencies, which is particularly important in the context of rising price and by financing individual industrialist and artisans working in urban area, they can cost.

This has a consequently effect also on non-operative lending; ;make a significant contribution to industrial development.

They can make certain essential banking facilities such as remittance of funds etc; available in areas which ;may not be considered suitable for commercial banking and to persons who may not be able to get such civilities from commercial banks; and they can provide intelligent, experienced and active leadership to the cooperative movement including the central and apex cooperative banks, which in view of their federal character draw their directors from member's institutions.

In the view of the importance of central cooperative banks, the study is

undertaken to assess the performance of Warangal district cooperative central

bank.

2.3 Origin and Growth of District Co-operative Central Banks in India: The DCCBs have come into existence due to the failure of Primary Societies to attract required resources in the form of deposits from well to do sections of the village community on one hand and to inspire the habit of thrift and savings among their members to provide strong capital base on the other. The Co-operatives Societies act. 1904 was amended kin 1912 incorporating a clause for the registration of

Central Co-operative Societies consequently the number of Central Co-operative Societies have been registered under provisions of amended Act and have occupied a position of cardinal importance in the operative credit structure. Objectives of establishing District Central Co-operative Banks as follows:a) Their democratic organization and management help in catering better to the local needs, Mobilization of resources and recovery of the loans advanced.

b) They serve as a cushion in absorbing a part of the over dues of

societies. c) They are best suited to guide, supervise and control the societies. d) They constitute the basic unit of planning and development of

cooperative active at the District Level.

2.2 Progress of DCCBs In Andhra Pradesh : Andhra Pradesh State was formed in the year 1956. The jurisdiction of the state is \spread over an area of 2.76 lakhs square kilometers and divided into 23 districts comprising three regions of Coastal Andhra, Rayalaseema and Telangana.

Like the other states in Andhra Pradesh the cooperative movement made it's beginning as early as in k1920. Till the formation of the state there was separate Provincial cooperative act for Andhra region and Telangana region.

ORGANISATION PROFILE INTRODUCTION :

The Warangal Co-operative Central Bank Ltd. Warangal No. 20976 is deemed to have been registered as a co-operative society under the area of

Andhra Pradesh Co-operative Societies Act of 1964. The area of operation of the bank is confined to entire Warangal District comprising 51 Revenue Mandals out of

which 21 Mandal Head quarters is covered with the Bank's branches. The Bank is having 23 Branches including Central office branch covering financed by the Warangal District Central Co-operative Bank.

OBJECTIVES

Its objectives shall be :

Primarily to finance the Primary Agricultural Credit Societies k(PACs) registered or deemed to have been registered under the AP Co-operative Societies Act 7 of 1964 and secondarily to finance all other Co-operative Societies in the District To service members of erstwhile PADBs including disbursement of second and subsequent installments of loans directly to such members, and recovery of such loan of members till they are cleared and arrange for issue of fresh long term loans through PACs. To finance individuals, firms companies corporations etc; by admitting them as 'B' class members for purposes approved by higher financing agencies from time to time either individually or jointly with other financing institutions. To raise funds by way of posit, loans cash credits, overdraft and

advances from Apex Bank, Government and other financing agencies. To open regional offices, branches or sub-offices with the prior permission of the Registrar both for banking purposes and issue and recovery of ST, MT and LT loans To guarantee the loans and advances to be made to the member societies by and other agencies. To advice develop assist and co-ordinate and supervise and inspect the functioning of the. PACs and also to assist and supervise the functioning of other affiliated and indebted societies.

 To buy, sell or deal with securities, debentures or bonds or scrip or other forms or securities on its behalf or on behalf of members or other cooperative institutions. To maintain a library of Co-operative and banking literature. To act on agent of Government or Apex Bank or any institution if financing loans for Agricultural and Rural Development and allied activities and to accept and administer Any fund for such purposes. To carry on the general business of banking not repugnant to the provisions of the AP cooperative societies act 7 of 1964 and the rules framed there under or the Banking regulations act 1949 as applicable to cooperative societies and the rules made there under. All such other things and acts as are necessary, conductive and incidental to the attainment of the foregoing and generally to promote the cause of cooperation in the district.

MANAGEMENT OF THE BANK :

The management of the Bank shall vest in a Board consisting of such number of members and with such composition of members as prescribed in the

A.P.C.S. Act and Rules at present the Board consists of 19 members. ACCOUNTS AND RECORDS : Accounts to By-law 55-A of APCs, Act :

"The chief executive officer of every bank by whatever name designation he is called, or the President of the bank, shall be bound to keep, maintain or cause to

Maintain such accounts and books relating to that bank in such manner as may be prescribed. He shall be responsible for corrects and up-to-date maintenance of such accounts and books, for producing or causing production of the same when called for in connection to audit, inquiry or inspection".

The Warangal District Co-operative Central Bank Ltd., maintains books of accounts and records in form prescribed by the registrar and RBI addition as Board of Directors find it necessary.

The Registrar may prescribe such other statements as from time to time. The statements shall be made as on 30th June of every year and copy of each shall be sent to the Registrar within 30 days after close of the Co-operative year ending 30th June. DEPOSITS :

Deposits may be received at any time within the limits determined under the PACs. Act and rules on such rate of interest on deposits are subject to rules and regulations fixed by Board of Directors and also to directive issued by Reserve Bank of India on behalf from time to time.

THE VARIOUS DEPOSITS RECEIVED BY THE BANK :

Dhana Laxmi deposits

 Fixed deposits Current deposits Saving deposits Swayam Upadi deposits (day deposits) Thrift deposits Recurring deposits Security deposits LOANS AND ADVANCES :

The loans and advances may be granted to members on security subject to the direction issued by Reserve Bank of India from time and securities approved by Board of Directors, the securities such as:

i) Personal security and/sureties of other members/members;

ii) Collateral security of movable land immovable property

iii) Gold or silver ornaments or consumer durable;

iv) Industrial mercantile, Agricultural and other marketable commodities or machinery v) Under pledge, hypothecation or charge of the society; vi) Any other tangible security To take legal action against members of

societies in case of failure of the Managing Committee of Societies to take legal action. vii) To institute, conduct defend compound, compromise or abandon legal proceedings by or against the Bank. viii) To sanction loans to employees as per loaning policy to be determined

and with prior approval of Registrar

ix) To purchase vehicles for the see of the bank as per special by laws governing their purchase and maintenance of such vehicles as approved by Registrar.

x) To transact all other business incident to the administration of the Bank.

THE DIFFERENT TYPES OF LOANS ADVANCED TO MEMBERS :

i) Agricultural Loans ii) Loans on Deposits iii) Festival Loans iv) Vehicle Loans v) Gold and Jewel Loans 13

vi) Loans to owners of Bank

3.4. ORGANISATION DESIGN (CHART) OF THE WDCCB : The major functions and their inter-relationships of important structural aspects of the WDCCB are given in chart. The chart can be considered as vertical chart as the line of command flows form top to bottom in a vertical line. The chart is as follows.

FUNDS AND RETURNS :

FUNDS : The Bank will ordinarily obtain funds from the following sources.

i) Share Capital

ii) Deposits

iii) Other borrowing from various sources

iv) Entrance fee and miscellaneous receipts

v) Grants from Government and other agencies RETURN : The Bank shall prepare annual returns in such form as may be

prescribed by the

i) Registrar and Apex Bank

ii) Statement showing receipts and disbursements

iii) A profit and Loss account & balance sheet

iv) Which were under the Madras Province and the Nizam government

respectively.

All the societies, which were established prior to the formation of the state, have come under the fold the Andhra Pradesh Co-operative Societies Act of 1964. In order to implement the provisions of the Act a separate department is constituted and Registrar is made in charge for it.

Present Structure of Co-operative in A.P.

Bank in Andhra Pradesh as per 1997

No. of PACs No. of DCCBs No. of SCOB 6695 22 1

State and District Co-operative Banks are providing rural credit through Primary Agricultural Credit Societies to the 50 lakhs of people. Among them 75% are small and marginal farmers. In A.P. 50% of rural credit is provided by Co-operative Banks.

FINANCIAL STATEMENT TECHNIQUE

AN OVERVIEW

Financial Analysis is the basic method of appraising firm's overall study. As part of a scientific investigation of the firm, it attempts to secure through a systematic study of some significant clues about its financial condition and prospects. Its major thrust is future and current facts with a view to projecting and viability of a concern.

4.1. SCOPE OF THE STUDY: "Financial Analysis may be defined as the examination and comparison of financial data of the business with a view to assessing its overall health." It is the process of inductive reasoning for the purpose of formulating probability beliefs about a particular firm and information processing system designed to supply firmrelated data for decision-making.

Kennedy and Mc.Muller make the statement, they hold that "the analysis and the interpretation of financial statement are an attempt to determine the significance of financial statement data so that forecast may be made of the prospects for future earning, ability to pay interest and debt maturates (Current and Long-term), and profitability of a sound dividend policy".

In a slight different connotation, the broad purpose of Financial Analysis

could be said to measurement of solvency and performance in the sense of profitability, stability and similar items. At its best, financial Analysis seeks to information from other sources.

4.2 Types of Financial Analysis : Financial Analysis can be divided in to two following heads. They are as follows: I) On the basis of material used

17

Under this head there are 2 types: i) Internal Analysis ii) External Analysis

Internal Analysis :

Persons who have access to the internal accounting records of the business firm do this analysis.

External Analysis :

Outsiders who do not have access to the detailed information of accounting and records of the business form do this. The outsider includes investors, creditors, Government agencies etc. 2) On the basis of modus operandi :

Under this head there are 2 types : i) Horizontal Analysis ii) Vertical Analysis

Horizontal Analysis :

It refers to the comparison of financial data of company for several years.

Vertical Analysis :

It refers to the study relationship of the various items in financial statement of one accounting period.

4.3 PROCEDURE OF FINANCIAL STATAEMTN ANALYSIS Broadly speaking there are 3 steps in financial analysis. 1) Selection 2) Classification 3) Interpretation

The first step involves selection of information (data relevant to the purpose of analysis of financial statement. The second step involved is the methodical

18

classification of data and the third step includes drawing of inferences and conclusions.

4.2 METHODS/DEVICES OF FINANCIAL ANALYSIS The analysis of interpretation of financial statement is used to determine the financial position and results of operation as well. The numbers of methods or device used to study are as follows :

1) Comparative Statement 2) Common-Size Statement 3) Ratio Analysis 4) Cash-flow Analysis 5) Fund-flow Analysis 6) Trend Analysis 7) Cost-Volume-Profit Analysis As the project work deals with the study of the following methods, these

methods devices of financial analysis are discussed as under:

1) Comparative Balance Sheet Statement :

The Comparative Balance Sheet analysis is the study of the trends of same items, groups of items and computed items in to two or more balance sheet of the

same business on different data. The changes in the periodic Balance sheet items reflects the conduct of business. 2) Interpretations of Comparative Balance Sheet: While interpreting Comparative Balance Sheet the interpreter is expected to study. The following aspects:

1. Current Financial and Liquidity Position 2. Long-term Financial Position and 3. Profitability of the concern. 2) Ratio Analysis :

19

(a) Classification of Ratios In order the ratios serve as tool for financial analysis, they are classified on the basis of their function or purpose as follows : (a) Liquidity Ratio (b) Long-term solvency Ratio and Leverage Ratio (c) Turnover Ratio (d) Profitability Ratio The Ratio Analysis is the one of the next powerful tools financial analysis which is used to analyze and interpret the financial health of the enterprise. It is with the help of ratios that the financial statement can be analyzed more clearly and decision made for such analysis.

Sl. No. Liquidity Ratio Long-term Solvency & Leverage Ratio Turn over Ratio Profitability Ratio 1. Current Ratio Debit Equity Ratio Fixed Interest Turnover Ratio Gross Profit 2. Liquid Ratio Debt to total Capital Ratio Total Assets

Turn over Ratio Net Profit 3. Absolute Liquid Interest Coverage Ratio Working Capital Turnover Ratio Operating Profit 4. Cash flow / Debit Capital Employed Operating Ratio 5. Capital gearing Payables Turnover Ratio Expenses Ratio 6. Debtors Turnover Ratio Return on Equity 7. Creditors Turnover Ratio Return on Capital 8. Inventory Turnover Ratio

Return on Total Resources 9. Earning per Share 10. Price-earning Ratio

Importance of Ration Analysis :

1. Simplifies changes in financial condition of the Business. 2. It facilities to inter-firm comparison which reveals strong and weak firms. 3. Makes inter-firm comparison of performance of different division of the firms.

Uses of Ratio Analysis :

1) It helps in decision-making 2) Help in financial forecasting and planning 3) Financial strength and weakness can be easily communicated. 4) Helps in effective control of business form deviations. 5) It is essential part of budgeting control and standard costing. 6) It is helpful in assessing the financial position of the concern.

Where the shareholder or investor is going to invest. 7 Helps in knowing the financial position of the company to extend credit to the concern for creditors.

8) It helps in knowing the profitability of the concern because fringe benefits are related to the volume of profits earned. 9) It helps Government, as it is interested to know the overall strength of the industry to ascertain the economic condition.

Limitations of Ratio Analysis :

(a) Ratios are based only on information that has been recorded in the financial

statement. They suffer from inherent weakness of accounting records such as historical approach. (b) Ratios are not only the indicators: they cannot be taken as final decision regarding good or bad financial position of the business. (c) Ratios will give misleading results with the effects in price level are not taken into account. (d) No fixed standards can be laid down for ideal ratio; it may differ from industry to industry. (e) They can be easily window dressed to present better picture of financial and profitability of outsider. 21

(f) Different people intercept ratios in different ways, which leads to bias. As it is only the means, not and end in it. COMPARATIVE BALANCE SHEET

Sl.No. LIABILITIES CONTGAINS 1. Deposits Current deposits + fixed deposits + other deposits 2. Interest Payable On Borrowing + On Deposits 3. Borrowings From outside Banks 4. Miscellaneous Cost of Management + Adjusting heads 5. Capital Paid-up share capital 6. Reserves and funds Total of Reserves Sl.No. ASSETS CONTAINS 1. Cash & Bank balances Cash balance + Bank balance 2. Investments Deposits with approved banks + short term wings + long terms wings + share invested with Cooperative societies & Institutions 3. Loans & Advances Loans cash credits and over drafts of Co-operative 4. Govt. Securities Dues from Govt. 5. Fixed Assets Premises + Furniture's + Vehicles + Library 6. Interest Receivable Total Interest

7. Other Assets Total of Other Assets 8. Closing stock Trading stock 9. Miscellaneous Miscellaneous income + Adjusting heads suspense due to + Branch adjustments. 10. Loss Accumulated losses

ANALYSIS Comparative Balance sheet of the Warangal District Co-operative Central Bank Ltd., as on 31-3-2005 to 31-3-2006

(Rs. In Lakhs)

PARTICULARS 31-3-2005 31-3-2006 Inc / DecAmount Inc / Dec % ASSETS CURRENT ASSETS Cash & Bank balance 653.23 653.23 (-) 41.89 (-) 6.03 Investments 1541.01 2069.66 528.65 34.31 Loans & Advances 17099.97 26697.32 3579.35 21.04 Govt. Securities 127.83 127.83 --

Fixed Assets 38.87 40.17 1.3 3.34 Interest Receivable 2972.06 2770.33 (-)201.73 (-)6.79 Other Assets 349.72 305.54 (-)44.18 (-)12.63 Closing Stock 3.56 2.36 (-)1.2 (-)33.71 Miscellaneous 65.10 183.29 118.19 181.55 Loss 1486.15 2002.92 516.77 34.77 Total Current Assets 24379.39 28852.66 4473.27 18.35 CURRENT LIABILITIES Deposits 4780.12 6399.92 1619.8 33.89 Interest Payable 1452.48 1815.15 362.67 24.97 Borrowing 14165.42 15727.85 1562.43 11.03 Miscellaneous 266.02 315.91 49.89 18.75 Capital 1719.44 2146.17 426.73 24.82 Reserve & Funds 1995.90 2447.66 451.76 22.63 Total Current Liabilities 24379.39 28852.66 4473.27 18.35

Interpretation The following Points were observed from the above comparative Balance Sheet: 1) There has been increased in the loans & Advances Rs. 1403.90 Lakhs i.e. 6.78% and Also an heavy decrease in deposits of the bank in the current year Rs. (-) 727.64 Lakhs i.e. (-) 11.37%. 2) Cash & Bank balances have shown an decrease in the second year over the

first year, this will grow less liquidity position of the concern. 3) Even though there is a slight increase in the fixed assets but other assets has decreased, to Res.(-) 51.00 Lakhs i.e.(-) 16.69% 4) The borrowings of the bank are slightly increased by Rs. 1326.09 Lakhs i.e. 8.43%

5) The Increase in the reserve and funds will mean an increase in Interest liability where as an increase in capital will not increase any liability for paying interest.

6) Accumulated loss increased by Rs. 1201.29 Lakhs that is 59.98% over the previous year.

7) The over all financial position of the bank has slightly increased from the previous year by Rs. 2552.98 Lakhs that is 8.85%.

Comparative Balance sheet of the Warangal District Co-operative Central Bank Ltd., as on 31-3-2006 to 31-3-2007

(Rs. In Lakhs)

PARTICULARS 31-3-2006 31-3-2007 Inc / DecAmount Inc / Dec % ASSETS CURRENT ASSETS Cash & Bank balance 297.87 228.13 (-)69.74 (-) 23.41

Investments 1774.43 1839.38 64.95 3.66 Loans & Advances 22101.22 22161.33 60.11 0.27 Govt. Securities 127.83 127.83 -Fixed Assets 45.03 51.57 6.54 14.52 Interest Receivable 3370.36 4996.66 1626.30 48.25 Other Assets 254.54 228.75 (-)25.69 (-)10.13 Closing Stock 0.97 0.30 (-)0.67 (-)69.07 Miscellaneous 229.13 230.67 1.54 0.67 Loss 3204.21 5314.28 2110.07 65.85 Total Current Assets 31405.58 35178.90 3773.32 12.01 CURRENT LIABILITIES Deposits 5672.28 5567.75 (-)104.53 (-)1.84 Interest Payable 2598.32 2996.79 398.47 15.34

Borrowing 17053.94 16862.64 808.70 4.74 Miscellaneous 244.42 297.48 53.06 21.71 Capital 2158.68 2155.55 (-)3.23 (-)1.50 Reserve & Funds 3677.84 6298.69 2620.85 71.26 Total Current Liabilities 31405.58 35178.90 3773.32 12.01

Interpretation The following Points were observed from the above comparative Balance Sheet: 1) An increase in fixed assets should be compared to the increase long term loans and capital and there is increased in fixed assets by Rs. 6.54 lakhs that is 14.52% than previous year. 2) The other assets are decreased by Rs. (-) 25.79 lakhs that is (-) 10.13% from the previous year. 3) The borrowing of the bank are slightly increased by Rs. 808.7 lakhs that is 4.74% than the previous year. 4) The capital structure has decreased by Rs. (-) 3.23 lakhs that is (-) 1.50% 5) The reserves and funds have tremendously increased by Rs. 2620.85 lakhs that is 71.26% 6) The cash and bank balances has heavily decreased by Rs. (-)69.74 lakhs that is (-) 23.41% it shows that the bank has a problem with cash. 7) The bank has not doing well in their recoveries it shows that the accumulated loss has been Increased by Rs. 2110.07 lakhs that is 65.85%

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8) The current assets and the current liabilities have slightly increased by Rs. 3773.32 lakhs that is 12.01% and the over all financial position of the bank has been improved satisfactorily.

Comparative Balance sheet of the Warangal District Co-operative Central Bank Ltd., as on 31-3-2007 to 31-3-2008

(Rs. In Lakhs)

PARTICULARS 31-3-2007 31-3-2008 Inc / DecAmount Inc / Dec % ASSETS CURRENT ASSETS Cash & Bank balance 228.13 668.58 440.45 193.07 Investments 1839.38. 1888.47 49.09 2.67 Loans & Advances 22161.33 23701.35 1540.02 6.95 Govt. Securities 127.83 127.83 -Fixed Assets 51.57 19.01 (-)42.56 (-)63.15 Interest Receivable 4996.66 4565.68 (-)430.98 (-)8.63 Other Assets 282.75 177.86 (-)50.89 (-)22.25 Closing Stock 0.30 (-)0.07 (-)0.37 (-)132.33 Miscellaneous 230.67 201.31 (-)29.36 (-)12.73

Loss 5314.28 5183.89 (-)130.39 (-)2.41 Total Current Assets 35178.90 36533.91 1355.01 3.85 CURRENT LIABILITIES Deposits 5567.75 5858.45 290.70 5.22 Interest Payable 2996.79 3764.78 767.99 25.63 Borrowing 17862.64 17759.19 (-)103.45 (-)0.58 Miscellaneous 297.48 269.02 (-)28.46 (-)9.57 Capital 2155.55 2111.62 (-)43.93 (-)2.04 Reserve & Funds 6298.69 6770.85 472.16 7.50 Total Current Liabilities 35178.90 36533.91 1355.01 3.85

Interpretation The ;following Points were observed from the above Comparative Balance Sheet: 1) There is a tremendous increase in cash and bank balances, which is Rs. 440.45 lakhs that is 193.07% 2) 3) 4) Deposits of Bank have shown slight increase of Rs. 290.70 lakhs that is 5.22% the loans and advance have increased by Rs. 1540.02 lakhs that is 6.95% this shown that bank is using its resources very properly. Borrowing for the first time have decreased by Rs. (-) 103.45 lakhs that is (-) 0.58% then the previous year showing a decreased liability of the bank. The investment of the bank has slightly increased by Rs. 472.16 lakhs that is 7.50% 5) 6) 7) 8) There is decrease in both fixed assets that other assets. The bank is decreasing the accumulated loss by Rs. (-) 130.39 lakhs that is 2.45% it reveals that the bank is properly using its resources. The capital of the bank has decreased by Rs. (-)43.93 lakhs that is (-) 2.04%

The overall financial position of the bank is not bad and has registered growth in every aspect and the growth of Rs. 1355.01 lakhs that is 3.85.

Comparative Balance sheet of the Warangal District Co-operative Central Bank Ltd., as on 31-3-2008 to 31-3-2009

(Rs. In Lakhs)

PARTICULARS 31-3-2008 31-3-2009 Inc / DecAmount Inc / Dec % ASSETS CURRENT ASSETS Cash & Bank balance 668.58 348.98 (-)319.60 (1)47.80 Investments 1888.47 4745.97 2857.50 151.31 Loans & Advances 23701.35 27622.03 3920.68 16.53 Govt. Securities 127.83 127.83 -Fixed Assets 19.01 16.97 (-)2.04 (-)10.73 Interest Receivable 4565.68 3888.84 (-)676.84 (-)14,82 Other Assets 177.86 188.87 11.01 6.19 Closing Stock (-)0.07 (-)1.49 (-)1.56 (-)22.28 Miscellaneous 201.31 56.02 (-)145.29 (-)72.17 Loss 2183.89 43924.11 (-)259.78 (-)5.01 Total Current Assets 36533.91 41918.13 538422 14.74 CURRENT LIABILITIES Deposits 5858.45 5651.92 (-)206.51 (-)3.52 Interest Payable 3764.78 2666.44 (-)1098.34 (-)29.17

Borrowing 17759.19 21211.81 3452.62 19.44 Miscellaneous 269.02 442.59 173.57 64.52 Capital 2111.62 5115.93 3004.31 142.27 Reserve & Funds 6770.85 6829.42 58.57 0.86 Total Current Liabilities 36533.91 41918.91 5384.22 14.74

Interpretation The following Points were observed from the above comparative Balance Sheet: 1) 2) There is no change in the government Securities. Investments also increased by Rs. 2857.5 lakhs that is 151.31% and loans &

advances has been increased by Rs. 39.20.68 lakhs that is 16.54%

3) Cash and bank balances has decreased by Rs. (-)319.60 lakhs that is (-) 47.8%.

4) There is a decrease in the fixed assets but the other assets had increased by Rs. 11.0 lakhs that is 6.19%.

5) The deposits of the bank have been showed a great decrease by Rs. (-)

206.51 lakhs that is (-) 3.52%. 6) The borrowings of the bank are increased by Rs. 2452.62 lakhs that is 19.44% and also the reserve and funds have slightly increased by Rs. 58.57 lakhs that is 0.86%.

7) The capital of the bank has increased by Rs. 3004.31 lakhs that is 142.27%. 8) The reduction in accumulated losses by Rs. (-)259.78 lakhs that is (-) 5.01% it reveals that the bank using the resources efficiently. 9) The over all financial: position of the bank is good, it has grown by Rs. 5384.22 lakhs that is 14.74%.

COMPARATIVE INCOME STGATEMENT OF WARANGAL DISTRICT CO-OPERATIVE CENTRL BANK LTD., FOR THE YEAR ENDING 31st MARCH 2009 TO 2010

(Rs. In Lakhs)

PARTICULARS 31-3-2009 31-3-2010 Inc / DecAmount Inc / Dec % A) INCOME

Interest earned 3495.89 3945.19 449.34 12.85 Miscellaneous Receipts 595.27 --595.27 0 TOTAL 4091.16 3945.19 1044.57 12.85 B) EXPENDITGURE Interest paid 2252.94 2692.79 439.85 19.52 Establishment Charges 297.16 255.82 (-)41.34 (-)13.91 Contingent Charges 77.28 50.96 (-)26.32 (-)34,05 Reserve for Depreciation 1,87 6.96 5.09 272.19 Other Reserves Created 860.95 710.37 (-)150.58 (-)17.48 TOTAL 3490.2 3716.9 226.7 226.27 Net Loss before Tax (A-B) 600.96 228.29 817.87 (-)213.42

INTERPRETATION

The statement shows that the Interest earned is increased by 12.85 and there miscellaneous receipts are increased not decreased.

1) The contingent charges decreased by (-)26.32% hat is (-) 34.05%. 2) Offer reserve created as decreased by (-)150.58 that is (-)17.48%. 3) The total expenditure as increased by 226.6%.

COMPARATIVE INCOME STGATEMENT OF WARANGAL DISTRICT CO-OPERATIVE CENTRL BANK LTD., FOR THE YEAR ENDING 31st MARCH 2005 TO 2006

(Rs. In Lakhs)

PARTICULARS 31-3-2005 31-3-2006 Inc / DecAmount Inc / Dec % A) INCOME Interest earned 1968.88 19.46.70 (-)22.18 (-)1.13 Miscellaneous Receipts 417.96 541.64 123.68 29.59 TOTAL 2386.84 2488.34 101.50 4.25 B) EXPENDITGURE Interest paid 1689.50 2191.22 501.72 29.70 Establishment Charges 329.45 337.59 8.14 2.47 Contingent Charges 67.93 69.89 1.96 2.88 Reserve for Depreciation 1.62 1.57 (-)0.05 (-)3.09 Other Reserves Created 225.24 404.86 179.52 79.66 TOTAL 2313.84 3005.13 691.29 29.88 Net Loss before Tax (A-B) 73.00 (-)516.79 (-)589.79 (-)807.93

INTERPRETATION

1) The financial performance of the Warangal district Co-operative Central Bank has recorded a total income of Rs. 2488.34 lakhs as compared to previous year Rs. 2386.84 lakhs thus registering a growth rate of 4.25%. 2) Net profit decrease from Rs. 73.00 lakhs to (-) 516.79 Lakhs. 3) Interest paid has increased from Rs. 501.72 lakhs that is 29.70% also other reserve created has increased by Rs. 179.52 lakhs that is 79.66%. 4) The financial position is not satisfactory.

COMPARATIVE INCOME STATEMENT OF WARANGAL DISTRICT CO-OPERATIVE CENTRL BANK LTD., FOR THE YEAR ENDING 31st MARCH 2006 TO 2007

(Rs. In Lakhs)

PARTICULARS 31-3-2006 31-3-2007 Inc / DecAmount Inc / Dec % A) INCOMEInterest earned 1946.70 2911.88 965.18 49.58 Miscellaneous Receipts 541.64 201.07 (-)340.57 (-)62.88 TOTAL 2488.34 3112.95 624.61 25.10 B) EXPENDITGURE Interest paid 2191.22 2609.52 418.30 19.10 Establishment Charges 337.59 360.52 22.93 6.79 Contingent Charges 69.89 114.02 44.13 63.14 Reserve for Depreciation 1.57 1.88 0.31 19.74 Other Reserves Created 404.86 1228.30 823.44 203.39 TOTAL 3005.13 4314.24 1309.11 43.56 Net Loss before Tax (A-B) (-)516.79 (-)1201.29 (-)684.50 (-)132.45

INTERPRETATION

1) The statement shows that both the interest earned and miscellaneous receipt has declined by 49.58% and (-)62.88% thus the total income has declined by 25.10%. 2) The Interest paid has increased from Rs. 418.3 lakhs that is 19.10% and also the contingent charges have increased by Rs. 44.13 lakhs that is 63.14%. Thus the total expenditure has declined by Rs. 1309.11 lakhs that is 43.56%. 3) The financial position is not satisfactory.

COMPARATIVE INCOME STGATEMENT OF WARANGAL DISTRICT CO-OPERATIVE CENTRL BANK LTD., FOR THE

YEAR ENDING 31st MARCH 2007 TO 2008

(Rs. In Lakhs)

PARTICULARS 31-3-2007 31-3-2008 Inc / DecAmount Inc / Dec % A) INCOME Interest earned 2911.88 2731.26 (-)180.62 (-)6.20 Miscellaneous Receipts 201.07 313.16 112.09 55.75 TOTAL 3112.95 3044.42 (-)68.53 (-)2.20 B) EXPENDITGURE Interest paid 2609.52 2143.46 (-)466.06 (-)17.86 Establishment Charges 360.52 325.76 (-)34.76 (-)9.64 Contingent Charges 114.02 54.32 (-)59.72 (-)52.36 Reserve for Depreciation 1.88 4.84 2.96 157.45 Other Reserves Created 1228.30 2626.12 1397.83 113.80 TOTAL 4314.24 5154.50 8405.26 19.48 Net Loss before Tax (A-B) (-)1201.29 (-)2110.08 908.79 75.65

INTERPRETATION 1) 2)

3) The financial performance of the Warangal District Co-operative Central Bank has recorded a total income of Rs. (-) 68.53 lakhs that is 2.20% and the total expenditure is recorded has Rs. 840.26 lakhs that is 19.48%. Other Serve created are increased by Rs. 1397.82 lakhs that is 113.8%. The financial position is not satisfactory. 35

COMPARATIVE INCOME STGATEMENT OF WARANGAL DISTRICT CO-OPERATIVE CENTRL BANK LTD., FOR THE YEAR ENDING 31st MARCH 2008 TO 2009

(Rs. In Lakhs)

PARTICULARS 31-3-2008 31-3-2009 Inc / DecAmount Inc / Dec % A) INCOMEInterest earned 2731.26 2758.44 27.18 0.99 Miscellaneous Receipts 313.16 677.66 364.50 116.39 TOTAL 3044.42 3436.10 391.68 12.86 B) EXPENDITGURE Interest paid 21.43.46 2048.78 (-)94.68 (-)4.42 Establishment Charges 325.76 345.80 20.04 6.15 Contingent Charges 54.32 119.08 64.76 119.22

Reserve for Depreciation 4.84 2.04 (-)2.8 (-)57.85 Other Reserves Created 2626.12 790.00 (-)1836.12 (-)069.92 TOTAL 5154.50 3305.70 1848.80 (-)6.82 Net Loss before Tax (A-B) (-)2110.08 130.40 (-)1457.12 (-)69.05

INTERPRETATION 1) 2) 3) The statement shows that the both the Interest earned and miscellaneous receipts are slightly increased by 0.99% and 116.39%. Thus the total income has declined by 12.86%. The contingent charges as increased by Rs. 64.76 lakhs that is 119.22% and also the other reserves created as decreased by Rs. (-) 1836.12 lakhs that is (-) 69.92%. Thus the total expenditure has declined by (-) 6.82%. The financial position is not satisfactory.

Comparative Balance sheet of the Warangal District Co-operative Central Bank Ltd., as on 31-3-2009 to 31-3-2010 (Rs. In Lakhs)

PARTICULARS 31-3-2009 31-3-2010 Inc / DecAmount Inc / Dec % ASSETS CURRENT ASSETS Cash & Bank balance 357.09 103.36 (-)253.73 (-)71.05 Investments 4975.50 7058.52 2083.02 41.86 Loans & Advances 32558.86 3331.21 759.35 2.33 Govt. Securities -Fixed Assets 55.88 56.05 0.17 0.30 Interest Receivable 3565.19 4080.66 515.47 14.45 Other Assets 568.14 804.98 239.84 42.21 Closing Stock -Miscellaneous 284.65 595.27 310.62 109.12 Loss 6814.56 6521.50 (-)293.06 (-)4.30

Total Current Assets 49179.87 52541.55 3361.68 134.92 CURRENT LIABILITIES Deposits 6312.95 8373.31 2060.36 32.63 Interest Payable 2444.71 2758.89 314.18 12.85 Borrowing 25028.94 25046.67 17.73 0.07 Miscellaneous -Capital 5182.60 5352.39 169.79 3.27 Reserve & Funds 1035.91 1106.89 70.98 6.85 Total Current Liabilities 40005.11 42638.15 2633.04 55.67

INTERPRETATION

1) There is undesirable decrease in cash and bank balance which is Rs (-) 253.73 lakhs that is (-)71.05. 2) Deposits of bank have show flight increase of Rs. 2060.36 lakhs that is 32.63% and the loan and advance have decreased by 759.35 lakhs that is 2.33%. 3) Barrowings this year have decreased that is Rs. 17.73 lakhs that is 0.07%. 4) The Deposits of the bank have been showed a increase Rs. 2060.36 that is 32.63%. 5) Other Assets are increased Rs. 239.84 lakhs which is the 42.21%. But there desired Assets are decreased.

5.2RATIO ANALYSIS Current Ratio: Meaning : This ratio establishes a relation ship between current assets and

current liabilities. Objectives : The Objective of computing this ratio is to measure the ability of the firm to meet its short-term obligations and to reflect the short-term financial strength/solvency of a firm. In other words. The objective is to ensure the safety margin available for short-term creditors. Components : There are two components of this relation which are a under Current Assets : Which mean the assets which are held for there conversion in

to catch with in a Year Current Liabilities :Which mean the liabilities which are expected to be matured with in a year. Computation : This ratio is computed by dividing the current assets by the current liabilities.

This ratio is usually expressed as a pure ratio example 2:1 in the form of a formula, this ratio may be expressed as under. Current Ratio = Current Assets / Current Liabilities

(Rs.In Lakhs)

Years Current Assets Current Liabilities Current Ratio 2005-06 22449.79 20664.04 1.09 2006-07 26437.28 24258.83 1.09 2007-08 29331.59 25568.96 1.15 2008-09 33059.20 26724.66 1.24 2009-10 55886.02 56646.62 0.98

The Current assets of WDCCB includes cash & Bank balances, Loans & Advances. Closing Stocks. Miscellaneous, Loss & Interest Receivable. Where as Current Liabilities includes Deposits, Borrowings, Miscellaneous and Interest Payable.

B INTERPRETATION From the above table 1 is observed that the Current ratio is always below the ideal Ratio of 2:1 during the period under study. The table shows decreasing trend from 2005 to 2008 from 1.15. The highest Current Ratio was in the year 2009 where the current ratio was 1.24 in 2010 the ration showed

0.098 respectively. DEBT EQUITY RATIO :

a) Meaning: The ratio establishes a relationship between out side borrowing owned funds of any enterprise.

b) Objective : This Objective of computing this ratio is to measure the relative proportion of debt and equity in financing the assets of a firm.

c) Components : Long-term debts which man Long-term loans (Whether secured or un-secured e.g. Debentures, bonds, loans from financial institutions)

d) Computation : This ratio is computed by dividing the long-term debts by the shareholders funds. This ratio is usually expressed as proportions e.g. 2:1

Formula: Debt Equity ratio = Total Debts (Outstanding borrowings) / Total Equity (Equity + Reserve Funds)

Debt Equity Ratio = Outside funds Shareholders funds

(Rs.In Lakhs)

Years Debt Equity Debt Equity Ratio 2005-06 14165/42 3715.34 3.81 2006-07 15727.85 4593.83 3.44

2007-08 17053.94 5836.62 2.92 2008-09 17862.64 8454.24 2.11 2009-10 27034.75 31610.00 0.85

----INTERPRETATION

The table reveals that the Debt equity ratio is showing a continuous decrease for 3 years that is from 2007 to 201 for succeeding 2 years it has shown an increasing grand from 2005 2007.

The debt equity ratio has always been more that 2:1 indicating excess dependence on out side borrowings than the owned funds, which will increase the interest and principle payment obligation on the bank. Average debt equity ratio is

0.85. Credit Deposit Ratio Meaning : This ratio is the relationship between the credit given by bank to total

deposit raise by it. Objective : To increase the performance of bank by comparison with other banks. Components : There are two components of this relation, which are under

 Advances Deposits Computation : This ratio is computed by dividing the loans by the deposits. It is expressed as percentage. It is calculated as under.

CREDIT DEPOSIT RATIO = ADVANCE x 100 DEPOSITS

(Rs.In Lakhs)

Years Advances Deposits Credit DepositRatio 2005-06 17099.97 4780.12 357.73 2006-07 20697.32 6399.92 323.40 2007-08 22101.22 5672.28 389.63

2008-09 22161.33 5567.75 398.03 2009-10 64827.05 14983.48 432.66

----INTERPRETATION:

The table reveals that credit deposit ratio decrease from 323.40% in 2006-07 to increase in 432.66 in 2009-10.

Equity Loan Ratio

Meaning : Equity to loan ration is measured to know as to how much equity has been invested this issue of loans

Objective : High ratio indicates keen participation of equity in the loaning operations of bank

Components : There are two components of this relation, which are as under

Equity Loans ( Advances) Computation : This ratio is computed by dividing the equity by the loans and advances. It is Expressed as percentage. It is calculated as under

Equity Loan Ratio = Equity /

X 100

Loans (Advances)

(Rs.In Lakhs)

Years Equity Advances (loans) Equity-loan Ratio 2005-06 3715.34 17099.97 21.73

2006-07 4593.83 20697.32 22.19 2007-08 5836.62 21101.22 26.41 2008-09 8454.24 22161.33 38.15 2009-10 1699.53 3053.14 55.68

----INTERPRETATION :

The table reveals that equity to loan ratio to decrease from 21.73% in 2005to increase in 55.68 in 2009-10. Indicating a tendency of increasing participation of equity in the loaning operations of the bank.

Gross Profit Ratio: Meaning: This ratio establishes a relationship between Gross Profit and Advances. Objectives: The Objective of computing this ratio is to determine the efficiency of procurement of fund and utilization of funds.

Components: There are two components of this relation which are a under Gross Profit Advances

Computation: This ratio is computed by dividing the Gross Profit by the interest income. It is Expressed as Percentage. It is calculated as under Gross Profit Gross Profit Ration= --------------- x 100 Advances Gross Profit ratio reveals the gross income of the banks, which is available to the management to meet the non-interest cost commitments.

(Rs. In Lakhs)

YEAR Gross Profit Income Advances (loans) Gross Profit Ratio 2005-06 2386.84 17099.97 13.96 2006-07 2488.34 20697.32 12.02 2007-08 3112.95 22101.22 14.08 2008-09 3044.42 22161.33 13.74 2009-10 4091.16 32558.86 12.56

----d v a n c e s INTERPRETATION:

The lowest gross profit ratio was 12.02 in 2006-07. The highest gross profit ratio was 14.08 in 2007-08.

Quick Ratio: Components: There are two components of this relation which are under

Quick Assets Current Liabilities

Computation: This ratio is computed by dividing the quick assets by the Current Liabilities. It is expressed as percentage. It calculated as under.

Quick Assets Quick Ratio = -------------------------x 100 Current Liabilities

Quick Assets = Current Assets Stock + Prepaid Expenses

YEAR Quick Assets Current Liabilities Quick Ratio 2005-06 20819.39 24379.39 0.853 2006-07 30435.58 31405.58 0.96 2007-08 34878.90 35178.90 0.99 2008-09 36463.91 36533.91 0.998 2009-10 49179.87 40005.11 1.22

----INTERPRETATION: The Table reveals that the Quick ratio is showing a continuous increasing from 2005 10

SUPER QUICK RATIO:

Computation: This Ratio is Computed by dividing the Cash+Bank+Marketable

Securities by the Current Liabilities.

Cash+Bank+Marketable Securities Super Quick Ratio = ---------------------------------------------Current Liabilities

YEAR Super Quick Ratio Current Liabilities Ratio 2005-06 2194.24 24379.39 0.090 2006-07 2072.30 31405.58 0.065 2007-08 2067.51 35178.90 0.658 2008-09 2557.05 36533.91 0.069 2009-10 5332.59 40005.11 0.133

----INTERPRETATION:

The Table reveals that the super quick ratio is showing slight increase shown 200507 to 2009 10.

CHAPTER V CONCLUSIONS&SUGGESTIONS

1. The authorized share capital is Rs. 22 Crores, and paid up share capital of Rs. 1719.44 lakhs. There was an increase in the share capital with a marginal increase in the deposits out standing. It reveals that the bank is giving much loans and advances to the societies. 2. The Reserves at the beginning of review period that is 1999-2000 the reserves were of Rs. 1995.0 lakhs and it more than doubled to Rs. 6829.42 lakhs in the last year of the study 2009-2010. As the reserves are sources of long-term finance, so it could meet its long-term obligations very easily. 3. The Co-operative banks main objective is to ensure financial support to agriculture activities: anyhow the WDCCB is giving financial support to accumulated loss the profit is deducted from the loss. 4. The bank has been very much successful in mobilizing the deposits; it has been following positive policies by giving its members various options of depositing their saving as discussed in earlier chapter. The present depositsof Rs. 4780.12 lakhs in 2005-06 and increase by Rs. 5651.94

lakhs. 5. The banks operations are mainly borrowings and loans and loans and loans and advances to societies. The bank is getting sufficient borrowing from APCOB a and other Govt. Banks. The Borrowings are to increased by Rs. 21211.81 lakhs in the year 2009-10. 6. The banks Investments are increased by Rs. 4745.97 lakhs it will shows the efficient decision-making by the management. Because the investments will give the fixed rate of interest to the Bank it will lead the bank of sufficient working capital.

7. The current ratio has always been below the ideal ratio of 2:1 the average current ratio during the six years period is 1.23. It indicates that management has failed to maintain sufficient cushion of protection to current liabilities of the bank. 8. This average debt equity ratio for the six years period under study is 1.78. It indicates more Reliance on borrowings compared to owned funds. 9. The credit deposit ratio has increased from 357.73 percent in the year 2000 to 4888.72 percent in the year 2008 indicating efficient performance of the management in attracting adequate deposits. 10.The net profit ratio has been a poor performance indicating losses in the year 2005 to 20010. During the last year, the NPR varied between 0.94 indicating poor operating efficiency of the bank.

SUGGESTIONS :

The firm should try to reduce the amount invested in current assets, there by the current ratio should come down to ideal ratio. The bank that the firm should try to reduce current assets there by

the funds invested in current assets should divert to purchase fixed assets, further the profitability may be increased. The bank that to increase debt equity ratio of the bank, otherwise, it becomes in trouble to net current liabilities.

 The bank that to increase the credit deposit ratio by developing sales of the bank and decreasing the operating costs. The bank that should try to decrease the operating cost otherwise, the bank may go under losses. The bank that should try to increase the gross profit by increasing the sales of the bank. BIBILIOGRAPHY

BOOKS:

1. M. Khan and P.K. Jain Financial Management Mc. Graw Hill 2. L.M. Bhole, Financial Institutions and Markets, Tata Mc. GrawHill, 2006. 3. Prasanna Chandra Financial Management, Tata Mc. Graw-Hill Publishing New Delhi 2006. WEBSITE:

1. www. Bankers.com

OTHER:

1. Annual Reports of the Bank. CONCLUSIONS AND SUGGESTIONS

1. The authorized share capital is Rs. 22 Crores, and paid up share capital of Rs. 1719.44 lakhs. There was an increase in the share capital with a marginal increase in the deposits out standing. It reveals that the bank is giving much loans and advances to the societies.

2. The Reserves at the beginning of review period that is 1999-2000 the reserves were of Rs. 1995.0 lakhs and it more than doubled to Rs. 6829.42 lakhs in the last year of the study 2009-2010. As the reserves are sources of long-term finance, so it could meet its long-term obligations very easily. 3. The Co-operative banks main objective is to ensure financial support to agriculture activities: anyhow the WDCCB is giving financial support to accumulated loss the profit is deducted from the loss. 4. The bank has been very much successful in mobilizing the deposits; it has been following positive policies by giving its members various options of depositing their saving as discussed in earlier chapter. The present depositsof Rs. 4780.12 lakhs in 2005-06 and increase by Rs. 5651.94 lakhs. 5. The banks operations are mainly borrowings and loans and loans and loans and advances to societies. The bank is getting sufficient borrowing from APCOB a and other Govt. Banks. The Borrowings are to increased by Rs. 21211.81 lakhs in the year 2009-10. 6. The banks Investments are increased by Rs. 4745.97 lakhs it will shows the efficient decision-making by the management. Because the investments will

give the fixed rate of interest to the Bank it will lead the bank of sufficient working capital. 7. The current ratio has always been below the ideal ratio of 2:1 the average current ratio during the six years period is 1.23. It indicates that management has failed to maintain sufficient cushion of protection to current liabilities of the bank. 8. This average debt equity ratio for the six years period under study is 1.78. It indicates more Reliance on borrowings compared to owned funds.

9. The credit deposit ratio has increased from 357.73 percent in the year 2000 to 4888.72 percent in the year 2008 indicating efficient performance of the management in attracting adequate deposits. 10.The net profit ratio has been a poor performance indicating losses in the year 2005 to 20010. During the last year, the NPR varied between 0.94 indicating poor operating efficiency of the bank.

BIBILIOGRAPHY

BOOKS:

1. M. Khan and P.K. Jain Financial Management Mc. Graw Hill 2. L.M. Bhole, Financial Institutions and Markets, Tata Mc. GrawHill, 2006.

3. Prasanna Chandra Financial Management, Tata Mc. Graw-Hill Publishing New Delhi 2006. WEBSITE:

1. www. Bankers.com OTHER:

1. Annual Reports of the Bank.