cash flow statment

8/9/2019 Cash flow statment

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A STUDY ON CASH FLOW STATEMENT ON SARASWAT BANK

BANGALORE UNIVERSITY

A STUDY ON

CASH FLOW STATEMENT

IN

SARASWAT COOPERATIVE BANK

Submitted in the partial fulfillment for the award of

BACHELOR OF BUSINESS MANAEMEN! "EREE B#

BANALORE UNI$ERSI!#

SATHISH.M

%RE&NO&''(FC')*'+,

Under the -uidan.e of

ASST. PROFESSOR.LALATENDU MISHRA

M.PHIL

"E/AR!MEN! OF COMMERCE

NO&)p 0 1p2 oppo3ite Info343 -ate 52 ele.troni. .it4 pha3e '2

Ele.troni. .it42 Ban-alore2 6arnata7a 89*'**

IFIM COLLEGE PAGE 1


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LIST OF CONTENTS

Sl.

number

Contents Page

number

1 CERTIFICATE OF COLLEGE 3

2 CERTIFICATE OF COMPAN

3 CERTIFICATE OF G!I"E #

$ "ECLARATION %

# AC&NO'LE"GEMENT (

% LIST OF TA)LES *

( LIST OF GRAP+ ,

* E-eut/0e summar 1

* C+APTER1INTRO"!CTION 1143(

, C+APTER 2RESEARC+ MET+O"OLOG 3*4$2

1 C+APTER 3COMPAN PROFILE $34$(

11 C+APTER $"ATA ANALSIS AN"

INTERPRETATION

$*4%1

12 FIN"INGS %24%3

13 CONCL!SIONS AN" IMPLEMENTATION %$4%#

1$ ANNE5!RE %%4,$

1# )I)ILOGRAP+ ,#4

,%

IFIM COLLEGE PAGE 2


3/91


IFIM COLLEE

)/ 0 1/ 6IA"B indu3trial area

ELEC!RONIC CI!# ' /HASE

BANALORE : 89*'**

CER!IFICA!E

Certifi.ate that the di33ertation titled ;A study o !"s# $%o& st"t'('t o s")"s&"t

!oo*')"t+,' -" %td/ i3 ba3ed on the ori-inal pro


4/91


IFIM COLLEGE PAGE 4


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GUIDE CERTIFICATE

!hi3 i3 to .ertif4 that thi3 pro


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DECLARATION

I hereb4 de.lare that thi3 pro


7/91


IFIM COLLEGE PAGE 7


8/91


ACKNOWLEDGMENT

!hi3 pro


9/91


S%.o L+st o$ T"-%'s P"0' o

1 5&' TABLE SHOWING NET CASH FROM

OPERATING ACTIVITIES

78

2

5&( TABLE SHOWING NET CASH FROM

INVESTING ACTTIVIIES

8'

3

5& TABLE SHOWING NET CASH FROM

FINANCING ACTIVITIES

8

7

5&5 TABLE SHOWING NET CASH AND CASH

E9UIVALENTS

88

:

5&8 TABLE SHOWING OPENING CASH AND

CASH E9UIVALENTS

8+

;

5&9 TABLE SHOWING CLOSING CASH AND

CASH E9UIVALENTS

81

IFIM COLLEGE PAGE 9


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11/91


E


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INTRODUCTION

IN!RO"UC!ION

IFIM COLLEGE PAGE 12


13/91


H+sto)y o$ -"

!he ori-in3 of modern ban7in- .an be tra.ed to medie?al and earl4 Renai33an.e Ital42 !he Bardi

and /eruDDi familie3 dominated ban7in- in '5th .entur4 Floren.e2 e3tabli3hin- bran.he3 in man4

other part3 of Europe& One of the mo3t famou3 Italian ban73 wa3 the Medi.i Ban7 2 3et up b4

io?anni di Bi..i de Medi.i in '1+&

Modern ban7in- pra.ti.e2 in.ludin- fra.tional re3er?e ban7in- and the i33ue of ban7note32

emer-ed in the '+th and ')th .enturie3& Mer.hant3 3tarted to 3tore their -old with the -old3mith3

of London2 who po33e33ed pri?ate ?ault32 and .har-ed a fee for that 3er?i.e&

!he 3ealin- of the Ban7 of En-land Charter %'915,&

raduall4 the -old3mith3 be-an to lend the mone4 out on behalf of the depo3itor 2 whi.h led to

the de?elopment of modern ban7in- pra.ti.e3 promi33or4 note3 %whi.h e?ol?ed into ban7note3,

were i33ued for mone4 depo3ited a3 a loan to the -old3mith&

T#' B" o$ E0%"d &"s t#' $+)st to -'0+ t#' *')("'t +ssu' o$ -"ot's6 + 1;8:. !he

Ro4al Ban7 of S.otland e3tabli3hed the fir3t o?erdraft fa.ilit4 in '+()& B4 the be-innin- of the

'1th .entur4 a ban7er3 .learin- hou3e wa3 e3tabli3hed in London to allow multiple ban73 to

.lear tran3a.tion3& !he Roth3.hild3 pioneered international finan.e on a lar-e 3.ale2 finan.in-

the pur.ha3e of the SueD Canal for the Briti3h -o?ernment&

!he olde3t ban7 3till in ei3ten.e i3 Monte dei /a3.hi di Siena2 head=uartered in Siena2 Ital42

whi.h ha3 been operatin- .ontinuou3l4 3in.e '5+(& It i3 followed b4 Berenber- Ban7 of

Hambur- %'81*, and S?eri-e3 Ri73ban7 of Sweden %'99),&

O)+0+ o$ t#' &o)d

!he word ban7 wa3 borrowed in Middle En-li3h from Middle Fren.h ban=ue2 from Old Italian

ban.a2 from Old Hi-h erman ban72 ban7 Gben.h2 .ounterG& Ben.he3 were u3ed a3 de373 or

e.han-e .ounter3 durin- the Renai33an.e b4 Florentine ban7er32 who u3ed to ma7e their

tran3a.tion3 atop de373 .o?ered b4 -reen table.loth3&


http://en.wikipedia.org/wiki/Renaissancehttp://en.wikipedia.org/wiki/Italyhttp://en.wikipedia.org/wiki/Italyhttp://en.wikipedia.org/wiki/Bardi_familyhttp://en.wikipedia.org/wiki/Peruzzihttp://en.wikipedia.org/wiki/Peruzzihttp://en.wikipedia.org/wiki/Europehttp://en.wikipedia.org/wiki/Europehttp://en.wikipedia.org/wiki/Medici_Bankhttp://en.wikipedia.org/wiki/Giovanni_di_Bicci_de'_Medicihttp://en.wikipedia.org/wiki/Fractional_reserve_bankinghttp://en.wikipedia.org/wiki/Banknotehttp://en.wikipedia.org/wiki/Goldsmithhttp://en.wikipedia.org/wiki/Londonhttp://en.wikipedia.org/wiki/Deposit_(finance)http://en.wikipedia.org/wiki/Promissory_notehttp://en.wikipedia.org/wiki/Bank_of_Englandhttp://en.wikipedia.org/wiki/Banknotehttp://en.wikipedia.org/wiki/Banknotehttp://en.wikipedia.org/wiki/Royal_Bank_of_Scotlandhttp://en.wikipedia.org/wiki/Bankers'_clearing_househttp://en.wikipedia.org/wiki/Rothschild_familyhttp://en.wikipedia.org/wiki/Suez_canalhttp://en.wikipedia.org/wiki/Suez_canalhttp://en.wikipedia.org/wiki/List_of_oldest_bankshttp://en.wikipedia.org/wiki/Monte_dei_Paschi_di_Sienahttp://en.wikipedia.org/wiki/Sienahttp://en.wikipedia.org/wiki/Italyhttp://en.wikipedia.org/wiki/Berenberg_Bankhttp://en.wikipedia.org/wiki/Sveriges_Riksbankhttp://en.wikipedia.org/wiki/Sveriges_Riksbankhttp://en.wikipedia.org/wiki/Middle_Englishhttp://en.wikipedia.org/wiki/Middle_Frenchhttp://en.wikipedia.org/wiki/Italian_languagehttp://en.wikipedia.org/wiki/Old_High_Germanhttp://en.wikipedia.org/wiki/Renaissancehttp://en.wikipedia.org/wiki/Renaissancehttp://en.wikipedia.org/wiki/Florencehttp://en.wikipedia.org/wiki/Italyhttp://en.wikipedia.org/wiki/Bardi_familyhttp://en.wikipedia.org/wiki/Peruzzihttp://en.wikipedia.org/wiki/Europehttp://en.wikipedia.org/wiki/Medici_Bankhttp://en.wikipedia.org/wiki/Giovanni_di_Bicci_de'_Medicihttp://en.wikipedia.org/wiki/Fractional_reserve_bankinghttp://en.wikipedia.org/wiki/Banknotehttp://en.wikipedia.org/wiki/Goldsmithhttp://en.wikipedia.org/wiki/Londonhttp://en.wikipedia.org/wiki/Deposit_(finance)http://en.wikipedia.org/wiki/Promissory_notehttp://en.wikipedia.org/wiki/Bank_of_Englandhttp://en.wikipedia.org/wiki/Banknotehttp://en.wikipedia.org/wiki/Royal_Bank_of_Scotlandhttp://en.wikipedia.org/wiki/Bankers'_clearing_househttp://en.wikipedia.org/wiki/Rothschild_familyhttp://en.wikipedia.org/wiki/Suez_canalhttp://en.wikipedia.org/wiki/List_of_oldest_bankshttp://en.wikipedia.org/wiki/Monte_dei_Paschi_di_Sienahttp://en.wikipedia.org/wiki/Sienahttp://en.wikipedia.org/wiki/Italyhttp://en.wikipedia.org/wiki/Berenberg_Bankhttp://en.wikipedia.org/wiki/Sveriges_Riksbankhttp://en.wikipedia.org/wiki/Middle_Englishhttp://en.wikipedia.org/wiki/Middle_Frenchhttp://en.wikipedia.org/wiki/Italian_languagehttp://en.wikipedia.org/wiki/Old_High_Germanhttp://en.wikipedia.org/wiki/Renaissancehttp://en.wikipedia.org/wiki/Florencehttp://en.wikipedia.org/wiki/Renaissance


14/91


One of the olde3t item3 found 3howin- mone4:.han-in- a.ti?it4 i3 a 3il?er ree7 dra.hm .oin

from an.ient Helleni. .olon4 !rapeDu3 on the Bla.7 Sea2 modern !rabDon2 .& 8*(8 BC2

pre3ented in the Briti3h Mu3eum in London&

D'$++t+o

!he definition of a ban7 ?arie3 from .ountr4 to .ountr4&

Under En-li3h .ommon law2 a ban7er i3 defined a3 a per3on who .arrie3 on the bu3ine33 of

ban7in-2 whi.h i3 3pe.ified a3

• .ondu.tin- .urrent a..ount3 for hi3 .u3tomer32

• pa4in- .he=ue3 drawn on him>her2 and

• .olle.tin- .he=ue3 for hi3>her .u3tomer3&

In mo3t .ommon law


15/91


7eep in mind that the4 are definin- the bu3ine33 of ban7in- for the purpo3e3 of the le-i3lation2

and not ne.e33aril4 in -eneral& In parti.ular2 mo3t of the definition3 are from le-i3lation that ha3

the purpo3e3 of entr4 re-ulatin- and 3uper?i3in- ban73 rather than re-ulatin- the a.tual bu3ine33

of ban7in-& Howe?er2 in man4 .a3e3 the 3tatutor4 definition .lo3el4 mirror3 the .ommon law

one& Eample3 of 3tatutor4 definition3

• Gban7in- bu3ine33G mean3 the bu3ine33 of re.ei?in- mone4 on .urrent or depo3it a..ount2

pa4in- and .olle.tin- .he=ue3 drawn b4 or paid in b4 .u3tomer32 the ma7in- of ad?an.e3

to .u3tomer32 and in.lude3 3u.h other bu3ine33 a3 the Authorit4 ma4 pre3.ribe for the

purpo3e3 of thi3 A.t %Ban7in- A.t %Sin-apore,2 Se.tion (2 Interpretation,&

• Gban7in- bu3ine33G mean3 the bu3ine33 of either or both of the followin-

'& re.ei?in- from the -eneral publi. mone4 on .urrent2 depo3it2 3a?in-3 or other 3imilar

a..ount repa4able on demand or within le33 than J month3K &&& or with a period of .all or

noti.e of le33 than that period

(& /a4in- or .olle.tin- .he.73 drawn b4 or paid in b4 .u3tomer3&

Sin.e the ad?ent of EF!/OS %Ele.troni. Fund3 !ran3fer at /oint Of Sale,2 dire.t .redit2 dire.t

debit and internet ban7in-2 the .he=ue ha3 lo3t it3 prima.4 in mo3t ban7in- 343tem3 a3 a pa4ment

in3trument& !hi3 ha3 led le-al theori3t3 to 3u--e3t that the .he=ue ba3ed definition 3hould be

broadened to in.lude finan.ial in3titution3 that .ondu.t .urrent a..ount3 for .u3tomer3 and

enable .u3tomer3 to pa4 and be paid b4 third partie32 e?en if the4 do not pa4 and .olle.t .he.73&


http://en.wikipedia.org/wiki/EFTPOShttp://en.wikipedia.org/wiki/Direct_debithttp://en.wikipedia.org/wiki/Direct_debithttp://en.wikipedia.org/wiki/Online_bankinghttp://en.wikipedia.org/wiki/Online_bankinghttp://en.wikipedia.org/wiki/EFTPOShttp://en.wikipedia.org/wiki/Direct_debithttp://en.wikipedia.org/wiki/Direct_debithttp://en.wikipedia.org/wiki/Online_banking


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B"+0

St"d")d "!t+,+t+'s

Lar-e door to an old ban7 ?ault&

Ban73 a.t a3 pa4ment a-ent3 b4 .ondu.tin- .he.7in- or .urrent a..ount3 for .u3tomer32 pa4in-

.he=ue3 drawn b4 .u3tomer3 on the ban72 and .olle.tin- .he=ue3 depo3ited to .u3tomer3 .urrent

a..ount3& Ban73 al3o enable .u3tomer pa4ment3 ?ia other pa4ment method3 3u.h a3 Automated

Clearin- Hou3e %ACH,2 ire tran3fer3 or tele-raphi. tran3fer 2 EF!/OS2 and automated teller

ma.hine %A!M,&

Ban73 borrow mone4 b4 a..eptin- fund3 depo3ited on .urrent a..ount32 b4 a..eptin- term

depo3it32 and b4 i33uin- debt 3e.uritie3 3u.h a3 ban7note3 and bond3& Ban73 lend mone4 b4

ma7in- ad?an.e3 to .u3tomer3 on .urrent a..ount32 b4 ma7in- in3tallment loan32 and b4

in?e3tin- in mar7etable debt 3e.uritie3 and other form3 of mone4 lendin-&

Ban73 pro?ide different pa4ment 3er?i.e32 and a ban7 a..ount i3 .on3idered indi3pen3able b4

mo3t bu3ine33e3 and indi?idual3& Non:ban73 that pro?ide pa4ment 3er?i.e3 3u.h a3 remittan.e

.ompanie3 are normall4 not .on3idered a3 an ade=uate 3ub3titute for a ban7 a..ount&

Ban73 .an .reate new mone4 when the4 ma7e a loan& New loan3 throu-hout the ban7in- 343tem

-enerate new depo3it3 el3ewhere in the 343tem& !he mone4 3uppl4 i3 u3uall4 in.rea3ed b4 the a.t

of lendin-2 and redu.ed when loan3 are repaid fa3ter than new one3 are -enerated& In the United

6in-dom between '11+ and (**+2 there wa3 a bi- in.rea3e in the mone4 3uppl42 lar-el4 .au3ed

b4 mu.h more ban7 lendin-2 whi.h 3er?ed to pu3h up propert4 pri.e3 and in.rea3e pri?ate debt&

!he amount of mone4 in the e.onom4 a3 mea3ured b4 M5 in the U6 went from +8* billion to


http://en.wikipedia.org/wiki/Bank_vaulthttp://en.wikipedia.org/wiki/Transactional_accounthttp://en.wikipedia.org/wiki/Chequehttp://en.wikipedia.org/wiki/Automated_Clearing_Househttp://en.wikipedia.org/wiki/Automated_Clearing_Househttp://en.wikipedia.org/wiki/Wire_transferhttp://en.wikipedia.org/wiki/Telegraphic_transferhttp://en.wikipedia.org/wiki/EFTPOShttp://en.wikipedia.org/wiki/EFTPOShttp://en.wikipedia.org/wiki/Automated_teller_machinehttp://en.wikipedia.org/wiki/Automated_teller_machinehttp://en.wikipedia.org/wiki/Term_deposithttp://en.wikipedia.org/wiki/Term_deposithttp://en.wikipedia.org/wiki/Banknoteshttp://en.wikipedia.org/wiki/Bond_(finance)http://en.wikipedia.org/wiki/Bond_(finance)http://en.wikipedia.org/wiki/Installment_loanhttp://en.wikipedia.org/wiki/Installment_loanhttp://en.wikipedia.org/wiki/Bank_vaulthttp://en.wikipedia.org/wiki/Transactional_accounthttp://en.wikipedia.org/wiki/Chequehttp://en.wikipedia.org/wiki/Automated_Clearing_Househttp://en.wikipedia.org/wiki/Automated_Clearing_Househttp://en.wikipedia.org/wiki/Wire_transferhttp://en.wikipedia.org/wiki/Telegraphic_transferhttp://en.wikipedia.org/wiki/EFTPOShttp://en.wikipedia.org/wiki/Automated_teller_machinehttp://en.wikipedia.org/wiki/Automated_teller_machinehttp://en.wikipedia.org/wiki/Term_deposithttp://en.wikipedia.org/wiki/Term_deposithttp://en.wikipedia.org/wiki/Banknoteshttp://en.wikipedia.org/wiki/Bond_(finance)http://en.wikipedia.org/wiki/Installment_loan


17/91


'+** billion between '11+ and (**+2 mu.h of the in.rea3e .au3ed b4 ban7 lendin-& J'8K If all the

ban73 in.rea3e their lendin- to-ether2 then the4 .an epe.t new depo3it3 to return to them and the

amount of mone4 in the e.onom4 will in.rea3e& E.e33i?e or ri374 lendin- .an .au3e borrower3

to default2 the ban73 then be.ome more .autiou32 3o there i3 le33 lendin- and therefore le33

mone4 3o that the e.onom4 .an -o from boom to bu3t a3 happened in the U6 and man4 other

e3tern e.onomie3 after (**+&


http://en.wikipedia.org/wiki/Bank#cite_note-15http://en.wikipedia.org/wiki/Bank#cite_note-15


18/91


It)odu!t+o o$ !"s#=

Ca3h i3 the ba3i. input needed to 7eep the operation3 of the bu3ine33 -oin- on a.ontinuin- ba3i3 it i3 al3o the final output epe.ted to be realiDed b4 3ellin- the produ.t

manufa.tured b4 the manufa.turin- unit& Ca3h i3 the both the be-innin- and the end of the

bu3ine33 operation3&

Sometime32 it 3o happen3 that a bu3ine33 unit earn3 3uffi.ient profit2 but in 3pite of thi3 it

i3 not able to pa4 it3 liabilitie3 when the4 be.ome due& !herefore2 a bu3ine33 3hould be alwa43

tr4 to 7eep 3uffi.ient .a3h2 neither more nor le33 be.au3e 3horta-e of .a3h will threaten the firm3

li=uidit4 and 3ol?en.42 wherea3 e.e33i?e .a3h will not be fruitful utiliDed2 will 3impl4 remain

ideal and affe.t the profitabilit4 of a .on.ern& Effe.ti?e .a3h mana-ement2 therefore2 implie3 a

proper balan.in- between the two .onfli.tin- ob


19/91


M'"+0 o$ C"s# F%o& St"t'('t

A .a3h flow 3tatement i3 more u3eful be.au3e it -i?e3 detailed information to the mana-ement

about the 3our.e3 of .a3h inflow3 and outflow3& A .a3h flow 3tatement .an be defined a3 a

3tatement whi.h 3ummariDe3 3our.e3 of .a3h inflow3 and u3e3 of .a3h outflow3 of a firm durin- a

parti.ular period of time2 3a4 a month or a 4ear& Su.h a 3tatement .an be prepaid from the data

made a?ailable from balan.e 3heet2 profit and lo33 a..ount and additional information& !hi3

3tatement report3 .a3h re.eipt3 and pa4ment3 .la33ified a..ordin- to entitie3 ma'!t+,'s o$ C"s# F%o& St"t'('t

I!"#$%&'(#! &)#*' '+, -&.+ /#0. #" &! ,!',$1$(., (. *.,"*2 (! 1$#3(4(!5 *.,$. #"

6!&!-(&2 .'&',%,!'. 0('+ & )&.(. '# &..,.. '+, &)(2('7 #" '+, ,!',$1$(., '#

5,!,$&', -&.+ &!4 -&.+ ,8*(3&2,!'. &!4 '+, !,,4. #" '+, ,!',$1$(., '# *'(2(9,

'+#., -&.+ /#0.: T+, ,-#!#%(- 4,-(.(#!. '+&' &$, '&;,! )7 *.,$. $,8*($, &!

,3&2*&'(#! #" '+, &)(2('7 #" &! ,!',$1$(., '# 5,!,$&', -&.+ &!4 -&.+ ,8*(3&2,!'.

&!4 '+, '(%(!5 &!4 -,$'&(!'7 #" '+,($ 5,!,$&'(#!:

T+, S'&',%,!' 4,&2. 0('+ '+, 1$#3(.(#! #" (!"#$%&'(#! &)#*' '+, +(.'#$(-&2

-+&!5,. (! -&.+ &!4 -&.+ ,8*(3&2,!'. #" &! ,!',$1$(., )7 %,&!. #" & -&.+ /#0

.'&',%,!' 0+(-+ -2&..(6,. -&.+ /#0. 4*$(!5 '+, 1,$(#4 "$#% #1,$&'(!5< (!3,.'(!5 &!4

6!&!-(!5 &-'(3('(,.:



20/91


S!o*'

'& Con3olidated .a3h flow i3 a finan.ial 3tatement that pre3ent3 information about the .ompan43

.a3h re.eipt3 and di3bur3ement3 durin- the a..ountin- period&

(& !he purpo3e of .a3h flow 3tatement i3 to pro?ide information on 3our.e3 and u3e3 of .a3h and

.a3h e=ui?alent3 durin- the period of a..ountin- durin- the period of a..ountin- and .a3h

re.on.iliation at the be-innin- of the period with .a3h at the end of the period plu3 the .a3h

e=ui?alent balan.e3&

& !he -eneral form of .a3h flow 3tatement 3how3 .a3h re.eipt3 and di3bur3ement3 are di?ided in

to .ate-orie32 namel4 .a3h flow from operatin- a.ti?itie32 .a3h flow3 from in?e3tin- a.ti?itie3

and .a3h flow3 ari3in- from finan.in- a.ti?itie3&

5& Operatin- a.ti?itie3 are the prin.ipal re?enue:produ.in- a.ti?itie3 of the .ompan4 %prin.ipal

re?enue produ.in- a.ti?itie3, and other a.ti?itie3 the4 are not in?e3tin- a.ti?itie3 and finan.in-

a.ti?ite3&.a3h flow3 from operatin- a.ti?itie3 .an be reported with the u3e of two method32 either

dire.tl4 or indire.tl4&

8& In?e3tment a.ti?itie3 are the a.=ui3ition3 and di3po3al of lon-:term a33et3 and other

in?e3tment3 that do not in.lude .a3h e=ui?alent3&

IFIM COLLEGE PAGE 2


21/91


Us'$u%'ss o$ C"s# F%o& St"t'('t

C"s# F%o& St"t'('t +s ,')y us'$u% to t#' (""0'('t $o) s#o)t t')( *%"+0 du'

to t#' $o%%o&+0 )'"sos=?

%i, P)'d+!t $utu)' !"s# $%o&s. !hi3 3tatement i3 often u3in- a3 an indi.ator of the amount2

timin- and .ertaint4 of future .a3h flow3 on the ba3i3 of what happened in the pa3t& !hi3 approa.h

i3 better than a..rual ba3i3 data pre3ented b4 profit and lo33 a..ount and balan.e 3heet&

%ii, D't')(+' t#' "-+%+ty to *"y d+,+d'ds "d ot#') !o((+t('ts. !hi3 3tatement

indi.ate3 the 3our.e3 and u3e3 of .a3h under operatin-2 in?e3tin- and finan.in- a.ti?itie32 help3

3hare holder3 to 7now whether the bu3ine33 .an ma7e the pa4ment of amount of di?idend3 on their

in?e3tment3 in 3hare3 and .reditor3 to re.ei?e intere3t and prin.ipal amount in time&

%iii, S#o& t#' )'%"t+os#+* o$ 't +!o(' to !#"0's + t#' -us+'ss !"s#. enerall4

there i3 dire.t relation between net in.ome and .a3h& I net in.ome lead3 to in.rea3e in .a3h and ?i3e

?er3a& But there ma4 be a 3ituation where a .ompan43 net in.ome i3 hi-h but de.rea3e in .a3h

balan.e and in.rea3e in .a3h balan.e when net in.ome i3 low& E?er4 u3er i3 intere3ted to 7now the

rea3on3 or differen.e between the net in.ome and net .a3h pro?ided b4 operation3& !he net in.ome

-enerall4 tell3 the pro-re33 of the bu3ine33 while .a3h flow relate3 to the li=uidit4 of bu3ine33& !he

u3e3 or helped to a33e33 the reliabilit4 of net profit with the help of thi3 3tatement&

%i?, E$$+!+'!y + C"s# M""0'('t. !hi3 3tatement i3 ?er4 u3eful to the mana-ement in

e?aluatin- finan.ial poli.ie3 and .a3h po3ition& It will help the mana-ement to ma7e the reliable

.a3h flow pro


22/91


mana-ement ma4 be able to ma7e plan for in?e3tment of 3urplu3 .a3h or to tap the 3our.e3 where

from the defi.ien.4 i3 to be met& !hu3 it i3 an important finan.ial tool for the mana-ement a3 it

help3 in the effi.ient .a3h mana-ement&

%?, D+s!%os's Mo,'('t o$ C"s#. /re?iou3 4ear .a3h flow 3tatement when .ompared with

the bud-et of that 4ear will indi.ate a3 to what etent the re3our.e3 of the enterpri3e were rai3ed and

applied& A.tual re3ult3 when .ompared with the ori-inal fore.a3t ma4 hi-hli-ht the trend of the

mo?ement of .a3h that ma4 otherwi3e remain undete.ted2

%?i, D+s!%os's Su!!'ss o) F"+%u)' o$ C"s# P%"+0. A Compari3on of pro


23/91


it i3 important to ma7e a .a3h flow report if 4ou want to 7now about the li=uidit4 po3ition

of the .ompan4&

(& It help3 the .ompan4 in ma7in- a..urate pro


24/91


D'$++t+os

A .a3h flow 3tatement i3 more u3eful be.au3e it -i?e3 detailed information to the mana-ement

about the 3our.e3 of .a3h inflow3 and outflow3& A .a3h flow 3tatement .an be defined a3 a

3tatement whi.h 3ummariDe3 3our.e3 of .a3h inflow3 and u3e3 of .a3h outflow3 of a firm durin- a

parti.ular period of time2 3a4 a month or a 4ear& Su.h a 3tatement .an be prepaid from the data

made a?ailable from balan.e 3heet2 profit and lo33 a..ount and additional information& !hi3

3tatement report3 .a3h re.eipt3 and pa4ment3 .la33ified a..ordin- to entitie3 ma


25/91


%?, I,'st+0 "!t+,+t+'s are the a.=ui3ition and di3po3al of lon-:term a33et3 and other

in?e3tment3 not in.luded in .a3h e=ui?alent3&

%?i, F+"!+0 "!t+,+t+'s are a.ti?itie3 that re3ult in .han-e3 in the 3iDe and .ompo3ition

of the owner3 .apital %in.ludin- preferen.e 3hare .apital in the .a3e of a .ompan4, and

borrowin-3 of the enterpri3e&

CLASSIFICATION OF CASH FLOWS

+ C"s# F%o&s $)o( O*')"t+0 A!t+,+t+'s

!he amount of .a3h flow3 ari3in- from operatin- a.ti?itie3 i3 a 7e4 indi.ator of the etent

to whi.h the operation3 of the enterpri3e ha?e -enerated 3uffi.ient .a3h flow3 to maintain the

operatin- .apabilit4 of the enterpri3e2 pa4 di?idend32 repa4 loan3 and ma7e new in?e3tment3

without re.our3e to eternal 3our.e3 of finan.in-& Information about the 3pe.ifi. .omponent3

of hi3tori.al operatin- .a3h flow3 i3 u3eful2 in .on


26/91


%b, Ca3h re.eipt3 from ro4altie32 fee32 .ommi33ion3 and other re?enue

%., Ca3h pa4ment3 to 3upplier3 for -ood3 and 3er?i.e3

%d, Ca3h pa4ment3 to and on behalf of emplo4ee3

%e, Ca3h re.eipt3 and .a3h pa4ment3 of an in3uran.e enterpri3e for premium3 and

.laim32 annuitie3 and other poli.4 benefit3

%f, Ca3h pa4ment3 or refund3 of in.ome tae3 unle33 the4 .an be 3pe.ifi.all4

identified with finan.in- and in?e3tin- a.ti?itie3 and

%-, Ca3h re.eipt3 and pa4ment3 relatin- to future3 .ontra.t32 forward .ontra.t32 option

.ontra.t3 and 3wap .ontra.t3 when the .ontra.t3 are held for dealin- or tradin- purpo3e3&

Some tran3a.tion32 3u.h a3 the 3ale of an item of plant2 ma4 -i?e ri3e to a -ain or lo33 whi.h

i3 in.luded in the determination of net profit or lo33& Howe?er2 the .a3h flow3 relatin- to 3u.h

tran3a.tion3 are .a3h flow3 from in?e3tin- a.ti?itie3&

An enterpri3e ma4 hold 3e.uritie3 and loan3 for dealin- or tradin- purpo3e32 in whi.h .a3e

the4 are 3imilar to in?entor4 a.=uired 3pe.ifi.all4 for re3ale& !herefore2 .a3h flow3 ari3in- from

the pur.ha3e and 3ale of dealin- or tradin- 3e.uritie3 are .la33ified a3 operatin- a.ti?itie3&

Similarl42 .a3h ad?an.e3 and loan3 made b4 finan.ial enterpri3e3 are u3uall4 .la33ified a3

operatin- a.ti?itie3 3in.e the4 relate to the main re?enue:produ.in- a.ti?it4 of that enterpri3e&



27/91


%ii, C"s# F%o&s $)o( I,'st+0 A!t+,+t+'s

!he 3eparate di3.lo3ure of .a3h flow3 ari3in- from in?e3tin- a.ti?itie3 i3 important be.au3e

the .a3h flow3 repre3ent the etent to whi.h ependiture3 ha?e been made for re3our.e3 intended

to -enerate future in.ome and .a3h flow3& Eample3 of .a3h flow3 ari3in- from in?e3tin-

a.ti?itie3 are

%a, Ca3h pa4ment3 to a.=uire fied a33et3 %in.ludin- intan-ible3,& !he3e pa4ment3

in.lude tho3e relatin- to .apitaliDed re3ear.h and de?elopment .o3t3 and 3elf:.on3tru.ted fied

a33et3

%b, Ca3h re.eipt3 from di3po3al of fied a33et3 %in.ludin- intan-ible3,

%., Ca3h pa4ment3 to a.=uire 3hare32 warrant3 or debt in3trument3 of other

enterpri3e3 and intere3t3 in


28/91


%-, Ca3h pa4ment3 for future3 .ontra.t32 forward .ontra.t32 option .ontra.t3 and 3wap

.ontra.t3 e.ept when the .ontra.t3 are held for dealin- or tradin- purpo3e32 or the pa4ment3 are

.la33ified a3 finan.in- a.ti?itie3 and

%h, Ca3h re.eipt3 from future3 .ontra.t32 forward .ontra.t32 option .ontra.t3 and 3wap

.ontra.t3 e.ept when the .ontra.t3 are held for dealin- or tradin- purpo3e32 or the re.eipt3 are

.la33ified a3 finan.in- a.ti?itie3&

hen a .ontra.t i3 a..ounted for a3 a hed-e of an identifiable po3ition2 the .a3h flow3 of the

.ontra.t are .la33ified in the 3ame manner a3 the .a3h flow3 of the po3ition bein- hed-ed&

3 C"s# $%o& $)o( $+"!+0 A!t+,+t+'s

!he 3eparate di3.lo3ure of .a3h flow3 ari3in- from finan.in- a.ti?itie3 i3 important be.au3e

it i3 u3eful in predi.tin- .laim3 on future .a3h flow3 b4 pro?ider3 of fund3 %both .apital and

borrowin-3, to the enterpri3e& Eample3 of .a3h flow3 ari3in- from finan.in- a.ti?itie3 are

%a, Ca3h pro.eed3 from i33uin- 3hare3 or other 3imilar in3trument3

%b, Ca3h pro.eed3 from i33uin- debenture32 loan32 note32 bond32 and other 3hort or

lon- term borrowin-3

%., Ca3h repa4ment3 of amount3 borrowed&

%d, Ca3h pa4ment3 to redeem preferen.e 3hare3 and

%e, /a4ment of di?idend&



29/91


P)'*")"t+o 4$ !"s# $%o& st"t'('t

An or-aniDation 3hould prepare a .a3h flow 3tatement a..ordin- to the A..ount 3tandard:

& !he followin- ba3i. information i3 re=uired for the preparation for the .a3h flow 3tatement

%', B"%"!' S#''ts& Balan.e 3heet3 at the be-innin- and at the end of the a..ountin- period

are re=uired to indi.ate the amount of .han-e3 that ha?e ta7en pla.e in a33et3 and

liabilitie3 and .apital&%(, P)o$+t "d %oss "!!out& !hi3 a..ount of the .urrent period enable3 to determine the

amount of .a3h pro?ided b4 or u3ed in operatin- a.ti?itie3 durin- the a..ountin- period

after ma7in- ad


30/91


amount of net .a3h pro?ided or u3ed b4 operatin- a.ti?itie3& All the in.rea3e3 in .urrent a33et3

e.ept .a3h and de.rea3e3 in .urrent liabilitie3 de.rea3e .a3h& It i3 3o be.au3e in.rea3e in debtor3

ta7e3 pla.e a3 .urrent 3ale3 are -reater than .a3h .olle.tion3 in?entorie3 in.rea3e when the

.urrent .o3t of -ood3 pur.ha3ed i3 more than the .urrent .o3t of -ood3 3old leadin- to redu.tion

in .a3h& In.rea3e in prepaid epen3e3 redu.e3 .a3h from operation3 be.au3e more .a3h i3 paid

than i3 re=uired for their .urrent 3er?i.e3& Li7ewi3e2 de.rea3e in .urrent liabilitie3 redu.e3 .a3h

from operation3 be.au3e de.rea3e in .urrent liabilitie3 ta7e3 pla.e when the4 are paid in .a3h&

Similarl4 all de.rea3e3 in .urrent a33et3 e.ept .a3h and in.rea3e3 in .urrent liabilitie3 in.rea3e

.a3h from operation3& Creditor3 would in.rea3e be.au3e .urrent pur.ha3e3 are more than the .a3h

paid to them durin- the .urrent period& "e.rea3e in prepaid epen3e3 indi.ate3 that le33 pa4ment

ha3 been made for 3er?i.e3 than are .urrentl4 u3ed2 i&e&2 3ome .a3h ha3 been 3a?ed .au3in- an

in.rea3e in .a3h from operation3&

Chan-e3 in fied a33et3 and fied liabilitie3 ha?e not been ad


31/91


!he dire.t method pro?ide3 information whi.h ma4 be u3eful in e3timatin- future .a3h

flow3 and whi.h i3 not a?ailable under the indire.t method and i32 therefore2 .on3idered

more appropriate than the indire.t method& Under the dire.t method2 information about

ma


32/91


R'*o)t+0 C"s# F%o&s $)o( I,'st+0 "d F+"!+0 A!t+,+t+'s

An enterpri3e 3hould report 3eparatel4 ma


33/91


%., Other 3hort:term borrowin-32 for eample2 tho3e whi.h ha?e a maturit4 period of

three month3 or le33&

Ca3h flow3 ari3in- from ea.h of the followin- a.ti?itie3 of a finan.ial enterpri3e ma4 be reported

on a net ba3i3

(a) .a3h re.eipt3 and pa4ment3 for the a..eptan.e and repa4ment of depo3it3 with a fied

maturit4 date

(b) the pla.ement of depo3it3 with and withdrawal of depo3it3 from other finan.ial

enterpri3e3 and

Ca3h ad?an.e3 and loan3 made to .u3tomer3 and the repa4ment of tho3e ad?an.e3 and loan3

S*'!+"% +t'(s

1 Fo)'+0 Cu))'!y C"s# F%o&s

Ca3h flow3 ari3in- from tran3a.tion3 in a forei-n .urren.4 3hould be re.orded in an enterpri3e3

reportin- .urren.4 b4 appl4in- to the forei-n .urren.4 amount the e.han-e rate between the

reportin- .urren.4 and the forei-n .urren.4 at the date of the .a3h flow& A rate that approimate3

the a.tual rate ma4 be u3ed if the re3ult i3 3ub3tantiall4 the 3ame a3 would ari3e if the rate3 at the

date3 of the .a3h flow3 were u3ed& !he effe.t of .han-e3 in e.han-e rate3 on .a3h and .a3h

e=ui?alent3 held in a forei-n .urren.4 3hould be reported a3 a 3eparate part of the re.on.iliation of

the .han-e3 in .a3h and .a3h e=ui?alent3 durin- the period&

Ca3h flow3 denominated in forei-n .urren.4 are reported in a manner

.on3i3tent with A..ountin- Standard %AS, ''2 A..ountin- for the Effe.t3 of

Chan-e3 in Forei-n E.han-e Rate3& !hi3 permit3 the u3e of an e.han-e rate that approimate3the a.tual rate& For eample2 a wei-hted a?era-e e.han-e rate for a period ma4 be u3ed for

re.ordin- forei-n .urren.4 tran3a.tion3&

UnrealiDed -ain3 and lo33e3 ari3in- from .han-e3 in forei-n e.han-e rate3 are not .a3h

flow3& Howe?er2 the effe.t of e.han-e rate .han-e3 on .a3h and .a3h e=ui?alent3 held or due



34/91


in a forei-n .urren.4 i3 reported in the .a3h flow 3tatement in order to re.on.ile .a3h and .a3h

e=ui?alent3 at the be-innin- and the end of the period& !hi3 amount i3 pre3ented 3eparatel4 from

.a3h flow3 from operatin-2 in?e3tin- and finan.in- a.ti?itie3 and in.lude3 the differen.e32

if an42 had tho3e .a3h flow3 been reported at the end:of:period e.han-e rate3

2 Et)"o)d+")y It'(s

!he .a3h flow3 a33o.iated with etraordinar4 item3 3hould be .la33ified a3 ari3in- from

operatin-2 in?e3tin- or finan.in- a.ti?itie3 a3 appropriate and 3eparatel4 di3.lo3ed .

!he .a3h flow3 a33o.iated with etraordinar4 item3 are di3.lo3ed 3eparatel4 a3 ari3in-

from operatin-2 in?e3tin- or finan.in- a.ti?itie3 in the .a3h flow 3tatement2 to enable u3er3 to

under3tand their nature and effe.t on the pre3ent and future .a3h flow3 of the enterpri3e& !he3e

di3.lo3ure3 are in addition to the 3eparate di3.lo3ure3 of the nature and amount of etraordinar4

item3 re=uired b4 A..ountin- Standard %AS, 82 Net /rofit or Lo33 for the /eriod2 /rior /eriod

Item3 and Chan-e3 in A..ountin- /oli.ie3

3 It')'st "d D+,+d'ds

Ca3h flow3 from intere3t and di?idend3 re.ei?ed and paid 3hould ea.h be di3.lo3ed

3eparatel4& Ca3h flow3 ari3in- from intere3t paid and intere3t and di?idend3 re.ei?ed in the

.a3e of a finan.ial enterpri3e 3hould be .la33ified a3 .a3h flow3 ari3in- from operatin- a.ti?itie3&

In the .a3e of other enterpri3e32 .a3h flow3 ari3in- from intere3t paid 3hould be .la33ified a3 .a3h

flow3 from finan.in- a.ti?itie3 while intere3t and di?idend3 re.ei?ed 3hould be .la33ified a3

.a3h flow3 from in?e3tin- a.ti?itie3& "i?idend3 paid 3hould be .la33ified a3 .a3h flow3 from

finan.in- a.ti?itie3&

!he total amount of intere3t paid durin- the period i3 di3.lo3ed in the .a3h flow

3tatement whether it ha3 been re.o-niDed a3 an epen3e in the 3tatement of profit and lo33 or

.apitaliDed in a..ordan.e with A..ountin- Standard %AS, '*2 A..ountin- for Fied A33et3&

Intere3t paid and intere3t and di?idend3 re.ei?ed are u3uall4 .la33ified a3 operatin- .a3h

flow3 for a finan.ial enterpri3e& Howe?er2 there i3 no .on3en3u3 on the .la33ifi.ation of

the3e .a3h flow3 for other enterpri3e3& Some ar-ue that intere3t paid and intere3t and



35/91


di?idend3 re.ei?ed ma4 be .la33ified a3 operatin- .a3h flow3 be.au3e the4 enter into the

determination of net profit or lo33& Howe?er2 it i3 more appropriate that intere3t paid and

intere3t and di?idend3 re.ei?ed are .la33ified a3 finan.in- .a3h flow3 and in?e3tin- .a3h

flow3 re3pe.ti?el42 be.au3e the4 are .o3t of obtainin- finan.ial re3our.e3 or return3 on

in?e3tment3&

Some ar-ue that di?idend3 paid ma4 be .la33ified a3 a .omponent of .a3h flow3 from

operatin- a.ti?itie3 in order to a33i3t u3er3 to determine the abilit4 of an enterpri3e to pa4 di?idend3

out of operatin- .a3h flow3& Howe?er2 it i3 .on3idered more appropriate that di?idend3 paid

3hould be .la33ified a3 .a3h flow3 from finan.in- a.ti?itie3 be.au3e the4 are .o3t of obtainin-

finan.ial re3our.e3&

7 T"'s o I!o('

Ca3h flow3 ari3in- from tae3 on in.ome 3hould be 3eparatel4 di3.lo3ed and 3hould

be .la33ified a3 .a3h flow3 from operatin- a.ti?itie3 unle33 the4 .an be 3pe.ifi.all4 identified with

finan.in- and in?e3tin- a.ti?itie3&

!ae3 on in.ome ari3e on tran3a.tion3 that -i?e ri3e to .a3h flow3 that are .la33ified a3 operatin-2

in?e3tin- or finan.in- a.ti?itie3 in a .a3h flow 3tatement& hile ta epen3e ma4 be readil4

identifiable with in?e3tin- or finan.in- a.ti?itie32 the related ta .a3h flow3 are often

impra.ti.able to identif4 and ma4 ari3e in a different period from the .a3h flow3 of the

underl4in- tran3a.tion3& !herefore2 tae3 paid are u3uall4 .la33ified a3 .a3h flow3 from operatin-

a.ti?itie3& Howe?er2 when it i3 pra.ti.able to identif4 the ta .a3h flow with an indi?idual

tran3a.tion that -i?e3 ri3e to .a3h flow3 that are .la33ified a3 in?e3tin- or finan.in- a.ti?itie32 the

ta .a3h flow i3 .la33ified a3 an in?e3tin- or finan.in- a.ti?it4 a3 appropriate& hen ta .a3h

flow are allo.ated o?er more than one .la33 of a.ti?it42 the total amount of tae3 paid i3

di3.lo3ed



36/91


:. I,'st('ts + Su-s+d+")+'s6 Asso!+"t's "d o+t V'tu)'s

hen a..ountin- for an in?e3tment in an a33o.iate or a 3ub3idiar4 or a


37/91


Man4 in?e3tin- and finan.in- a.ti?itie3 do not ha?e a dire.t impa.t on .urrent .a3h flow3

althou-h the4 do affe.t the .apital and a33et 3tru.ture of an enterpri3e& !he e.lu3ion of non:

.a3h tran3a.tion3 from the .a3h flow 3tatement i3 .on3i3tent with the ob


38/91


!here are ?ariou3 .ir.um3tan.e3 in whi.h .a3h and .a3h e=ui?alent balan.e3 held b4 an

enterpri3e are not a?ailable for u3e b4 it& Eample3 in.lude .a3h and .a3h e=ui?alent balan.e3

held b4 a bran.h of the enterpri3e that operate3 in a .ountr4 where e.han-e .ontrol3 or other le-al

re3tri.tion3 appl4 a3 a re3ult of whi.h the balan.e3 are not a?ailable for u3e b4 the enterpri3e&

Additional information ma4 be rele?ant to u3er3 in under3tandin- the finan.ial

po3ition and li=uidit4 of an enterpri3e& "i3.lo3ure of thi3 information2 to-ether with a

.ommentar4 b4 mana-ement2 i3 en.oura-ed and ma4 in.lude

%a, the amount of undrawn borrowin- fa.ilitie3 that ma4 be a?ailable for future operatin-

a.ti?itie3 and to 3ettle .apital .ommitment32 indi.atin- an4 re3tri.tion3 on the u3e of

the3e fa.ilitie3 and

%b, !he a--re-ate amount of .a3h flow3 that repre3ent in.rea3e3 in operatin- .apa.it4

3eparatel4 from tho3e .a3h flow3 that are re=uired to maintain operatin- .apa.it4&

!he 3eparate di3.lo3ure of .a3h flow3 that repre3ent in.rea3e3 in operatin- .apa.it4 and

.a3h flow3 that are re=uired to maintain operatin- .apa.it4 i3 u3eful in enablin- the u3er to

determine whether the enterpri3e i3 in?e3tin- ade=uatel4 in the maintenan.e of it3 operatin-

.apa.it4& An enterpri3e that doe3 not in?e3t ade=uatel4 in the maintenan.e of it3 operatin- .apa.it4

ma4 be pre


39/91


RESEARCH DESIGN



40/91


RESEARCH DESIGN

S!A!EMEN! OF !HE /ROBLEM

A finan.ial 3tatement .ontain3 in.ome 3tatement 3howin- 3ale32 Re?enue32 ta2 epen3e3 et.& on

the other 3ide the balan.e 3heet 3how3 the liabilitie3 and a33et3 po3ition durin- the 4ear&

!he 3tud4 of finan.ial performan.e i3 .ompo3ed of the followin-

'& Anal43i3 of the li=uidit4 and between .urrent liabilitie3 and a33et3&

(& Anal43i3 of the li=uidit4 and profitabilit4 of the .urrent a33et3 and .urrent liabilitie3&

& Anal43i3 of the lon- term finan.ial of the firm o?er a period of time

5& Ca3h Mar7etable 3e.uritie3 re.ei?able and in?entorie3

!he 3tud4 ta7e3 into .on3ideration the eternal anal43t point of ?iew and with the help of the pa3t

and late3t finan.ial 3tatement32 finan.ial po3ition2 will tr4 to be anal4Ded impartiall4&

OBEC!I$ES OF !HE S!U"#

Ba3ed on the information furni3hed in the finan.ial 3tatement32 ?ariou3 ob


41/91


P /repare a 3tatement of .a3h flow3 u3in- one of two approa.he3 %a, the indire.t method or %b,

the dire.t method

SCO/E OF S!U"#

!he 3.ope of the 3tud4 i3 .onfined to detail anal43i3 of .a3h flow 3tatement in 3ara3wat

.ooperati?e ban7 ltd

'& An enterpri3e 3hould prepare a .a3h flow 3tatement and 3hould pre3ent it for ea.h

period for whi.h finan.ial 3tatement3 are pre3ented&

(& U3er3 of an enterpri3e3 finan.ial 3tatement3 are intere3ted in how the

enterpri3e -enerate3 and u3e3 .a3h and .a3h e=ui?alent3&

!hi3 i3 the .a3e re-ardle33 of the nature of the enterpri3e3 a.ti?itie3 and irre3pe.ti?e of

whether .a3h .an be ?iewed a3 the produ.t of the enterpri3e2 a3 ma4 be the .a3e with a

finan.ial enterpri3e&

Enterpri3e3 need .a3h for e33entiall4 the 3ame rea3on32 howe?er different their prin.ipal

re?enue:produ.in- a.ti?itie3 mi-ht be&

!he4 need .a3h to .ondu.t their operation32 to pa4 their obli-ation32 and to pro?ide

return3 to their in?e3tor3&



42/91


ME!HO"OLO#

!he 3.hedule that wa3 planned to be ee.uted or the methodolo-4 of approa.h ma4 be eplained a3 follow3&

Id+)'!t M't#od

!he indire.t method u3e3 a .ompan43 net in.ome2 a3 reported from it3 in.ome 3tatement2 a3 a

3tartin- point before ma7in- ad


43/91


LIMI!A!ION OF !HE S!U"#

'& T+(' !he time allotted for the pro


44/91


COMPANY PROFILE



45/91


COM/AN# O$ER$IE

PROFILE OF SARSWAT COOPERATIVE BANK

On '5th September

'1')2G!he Sara3wat Co:operati?e Ban7in- So.iet4G wa3 founded& Mr& &6&

/arul7ar be.ame it3 fir3t Chairman2 Mr& N&B& !ha7ur2 the fir3t $i.e:Chairman2

Mr& /&N& arde2 the fir3t Se.retar4 and Mr& Shi?ram opal Ra


46/91


of the Ban7 .ontinued to demon3trate their unwa?erin- faith in the de3tin4 of the

.ommon man and the .o:operati?e mo?ement and the4 en.oura-ed the

3hareholder3 to 3a?e de3pite all odd3&

!han73 to the3e 3u3tained and a33iduou3 effort3 o?er (8 4ear3 after it3 in.eption2

the Ban7 had -ained a 3tron- foundation in term3 of it3 member3hip2 re3our.e32

a33et3 and profit3& B4 '15(2 the Ban7 wa3 fulfillin- all the ban7in- need3 of it3 .u3tomer3&

"urin- the late fiftie32 the Ban7 -rew from 3tren-th to 3tren-th& !he Ban7 had

e3tabli3hed fi?e bran.he3 within the .it4 of Mumbai and one ea.h at /une and

Bel-aum& In it3 8*th 4ear2 the Ban7 .ho3e a bee motif to 34mboli3e the Ban73

emblem : a fittin- and appropriate .hara.teri3ti. of a Ban7 that belie?ed in hard

wor72 a 3ear.h for all that i3 -ood2 a team 3pirit to a.hie?e it3 obinor-ani. -rowth and our pa.e of -rowth

a..elerated &!he Ban73 total bu3ine33 whi.h wa3 around R3&5*** Crore in (***



47/91


almo3t tripled to R3&'8(18 Crore in (**+&

In the 4ear (**)2 the Ban7 laun.hed a Brandin- Initiati?e& !he purpo3e of 3u.h an

eer.i3e wa3 to re.onfirm the thru3t of the Ban7 on it3 .ore ?alue32 whi.h .an be

3ummed up a3 a GSen3e of Belon-in-G& !he name of the Ban7 3hould alwa43

in3pire a Sen3e of Belon-in- in all it3 3ta7eholder3 and the Ban7 .ontinue3 to

fulfil the .han-in- need3 and epe.tation3 of the .u3tomer with unflin.hin- -u3to

and aplomb&

MISSION STATEMENT

G!o emer-e a3 one of the premier and mo3t preferred ban73 in the .ountr4 b4

adoptin- the hi-he3t 3tandard3 of profe33ionali3m and e.ellen.e in all the area3 of

wor7in-G

MILESTONES

In the la3t two de.ade3 the Ban7 ha3 witne33ed a 3tead4 -rowth in bu3ine33 and

al3o ta7en 3e?eral Strate-i. Bu3ine33 Initiati?e3 3u.h a3 underta7in- Bu3ine33

/ro.e33 Reen-ineerin- initiati?e2 mer-in- 3e?en Cooperati?e Ban73 and then

Con3.iou3l4 nurturin- them& !he Ban7 tied up with $ISA International for

I33uan.e of "ebit Card3&

In (*''2 the Ban7 wa3 -ranted permi33ion for All India Area of Operation b4Re3er?e Ban7 Of India& !he Ban7 ha3 an ambitiou3 bu3ine33 epan3ion plan in

pla.e to ha?e a pre3en.e in all ma


48/91


!he Ban7 ha3 a networ7 of 228 $u%%y !o(*ut')+'d bran.he3 a3 on 31st M")!#6

2413 .o?erin- 3i 3tate3 ?iD& Mahara3htra2 u


49/91


DATA ANALYSIS AND

INTERPRETATION



50/91


ANALYSIS AND INTERPRETATION OF DATA

7.1 TABLE SHOWING NET CASH FROM OPERATING ACTIVITIES

parti.ular3 Mar *1 Mar '* Mar '' Mar '( Mar '

Net Ca3h

From

Operatin-

A.ti?itie3

8+9&9+ :'(*9)&+* :(988&9+ 8555)&99 :'')91&+(

7.1.1 GRAPH SHOWING NET CASH FROM OPERATING ACTIVITIES

IFIM COLLEGE PAGE 5


51/91


M&$ =9 M&$ =1 M&$ =11 M&$ =12 M&$ =13

>4

>3

>2

>1

1

2

3

4

5

6

Net Cas6 From O7erat/ng At/0/t/es

N,' C&.+ F$#% O,$&'(!A-'(('(,.

INTERPRETATION=



52/91


!he net .a3h from operatin- a.ti?itie3 wa3 8+9&9+ .rore3 in the 4ear (**1 and the ban7 wa3 in

-ood po3ition durin- that 4ear& Later in the 4ear (*'* there wa3 de.rea3ed to '(*9)&+* .rore3

and there wa3 no bi- .han-e3 in (*'' a3 it i3 from

In?e3tin-

A.ti?itie3

:55'9&85 :)858&*1 :'8)&'5 1(&1 :(9'9&*'



53/91


7.2.1 GRAPH SHOWING NET CASH FROM INVESTING ACTIVITIES

M&$ =9 M&$ =1 M&$ =11 M&$ =12 M&$ =13

>5

>4

>3

>2

>1

1

I!,.'(! A-'(('(,.

INTREPRETATION =

!he net .a3h from in?e3tin- a.ti?itie3 wa3 :55'9&85 .rore3 in (**1 and It i3


54/91


:)858&*1 .rore3 in (*'*& In the 4ear (*'' it i3 a-ain de.rea3ed to :'8)&'5 .rore3 and a-ain it

i3 de.rea3ed in the net 4ear a3 it wa3 in.rea3ed in pre?iou3 4ear to :1(&1 .rore3 in (*'(&

Onl4 in the 4ear (*' it ha3 de.re3edto :(9'9&*' .rore3 and thi3 3how3 that there wa3 no

impro?ement durin- the3e 8 4ear3&

I$')'!'= From the abo?e -raph it .learl4 3how3 that the net .a3h from in?e3tin- a.ti?itie3 i3

de.rea3in- -raduall4&

7.3 TABLE SHOWING NET CASH FROM FINANCING ACTIVITIES


Net Ca3h%u3ed

in,>from

Finan.in-

A.ti?itie3

:+(89&)( :'*+(&(5 ()95(&'5 :59''&+5 :'+('&1(



55/91


7.3.1 GRAPH SHOWING NET CASH FROM FINANCING ACTIVITIES

M&$ =9 M&$ =1 M&$ =11 M&$ =12 M&$ =13

>5

>4

>3

>2

>1

1

2

3

4

Net Cas6 8use9 /n:;


56/91


INFERENCE

F)o( t#' "-o,' 0)"*# +t +s +$'))'d t#"t t#' 't !"s# $)o( $+"!+0 "!t+,+t+'s +s d'!)'"s+0

0)"du"%%y "d &')' $%u!tu"t+0 du)+0 t#'s' y'")s.

7.7 TABLE SHOWING NET CASH AND CASH E9UIVALENTS


Net

%de.rea3e,>in.rea3

e In Ca3h and

Ca3h E=ui?alent3

5'+*&' :+(*)&9 88*& +55&11 :'9(*+&98

7.7.1 GRAPH SHOWING NET CASH AND CASH E9UIVALENTS



57/91


M&$ =9 M&$ =1 M&$ =11 M&$ =12 M&$ =13

>5

>4

>3

>2

>1

1

2

3

4

5

Net 89e.rease:;/n.rease In Cas6 an9 Cas6 E=u/0alents

N,' ?,-$,&.,@A(!-$,&.,

I! C&.+ &! C&.+

E8*(&,!'.

INTERPRETATION =

!he net .a3h and .a3h e=ui?alent3 were in.rea3ed and de.rea3ed in the la3t 8 4ear3& In the 4ear

(**1 it i3 5'+*&' .rore3 and it ha3 de.rea3ed to :+(*)&9 .rore3 in (*'* and it i3


58/91


F)o( t#' "-o,' 0)"*# +t +s +$'))'d t#"t t#' 't !"s# "d !"s# '@u+,"%'ts +!)'"s'd "d

d'!)'"s'd 0)"du"%%y "d &')' $%u!tu"t+0 du)+0 t#'s' y'")s.

7.: TABLE SHOWING OPENING CASH AND CASH E9UIVALENTS


Openin-

Ca3h 0

Ca3h

E=ui?alent3

''+'5)&( '8))8'&85 '('95(&1

''(('1&(5 '(19+&(



59/91


7.:.1 GRAPH SHOWING OPENING CASH AND CASH E9UIVALENTS

M&$ =9 M&$ =1 M&$ =11 M&$ =12 M&$ =13

2

4

6

8

1

12

14

16

18

O7en/ng Cas6 > Cas6 E=u/0alents

O,!(! C&.+ C&.+

E*(&,!'.

INTERPRETATION =

!he openin- .a3h and .a3h e=ui?alent3 wa3 ''+'5)&( .rore3 in the 4ear (**1 and it i3


60/91


I$')'!'=

From the abo?e -raph it .lear 3how3 that the openin- .a3h and .a3h e=ui?alent3 i3 in.rea3in-

-raduall4

7.; TABLE SHOWING CLOSING CASH AND CASH E9UIVALENTS


Clo3in-Ca3h 0

Ca3h

E=ui?alent3

'8))8'&85 '('95(&1' '(('1&(

5'(19+&( ''5(1&8)

7.;.1 GRAPH SHOWING CLOSING CASH AND CASH E9UIVALENTS

IFIM COLLEGE PAGE 6


61/91


M&$ =9 M&$ =1 M&$ =11 M&$ =12 M&$ =13

2

4

6

8

1

12

14

16

18

Clos/ng Cas6 > Cas6 E=u/0alents

C#.(! C&.+ C&.+

E*(&,!'.

INTERPRETATION =

!he .lo3in- .a3h and .a3h e=ui?alent3 wa3 '8))8'&85 .rore3 in (**1& And it i3 de.rea3ed to

'('95(&1' .rore3 in (*'* and a-ain in the 4ear (*'' it i3 in.rea3ed to '(('1&(5 .rore3& In the

4ear (*'( it i3 -raduall4 in.rea3ed to '(19+&( .rore3 and it i3


62/91


From the abo?e -raph it .learl4 3how3 that the .lo3in- .a3h and .a3h e=ui?alent3 i3 al3o

in.rea3in- -raduall4



63/91


FINDINGS

'&!he net .a3h from operatin- a.ti?itie3 wa3 8+9&9+ .rore3 in the 4ear (**1 and the ban7 wa3

in -ood po3ition durin- that 4ear& Later in the 4ear (*'* there wa3 de.rea3ed to '(*9)&+* .rore3

and there wa3 no bi- .han-e3 in (*'' a3 it i3


64/91


-raduall4 in.rea3ed to 88*& .rore3 in (*'' but in the net 4ear (*'( it ha3 -raduall4 in.rea3ed

to +55&11 .ore3 and finall4 it i3 -raduall4 de.rea3ed to :'9(*+&98 .rore3 in the la3t 4ear (*'&

!hi3 3how3 that the ban7 wa3 -ood in& !he middle 4ear3 and there were no impro?ement durin-

tho3e 8 4ear3

8& !he openin- .a3h and .a3h e=ui?alent3 wa3 ''+'5)&( .rore3 in the 4ear (**1 and it i3


65/91


CONCLUSION

!he .a3h flow 3tatement3 on 3ara3wat .ooperati?e ban7 ha3 an ?er4 etremel4 flu.tuatin- .a3h

flow 3tatement3 whi.h i3 an .reate a problem in future for the .ompan4 for the fund3&

All the operatin-2 in?e3tin- and finan.ial a.ti?itie3 of the ban73 .ant be predi.ted u3in- the pa3t

balan.e 3heet3 due to the etreme flu.tuation3&

!he .a3h and the .a3h e=ui?alent3 of the ban7 ha?e been in the in.rea3in- trend e.ept for the

4ear mar.h (*''&

!he .a3h flow 3tatement32 refle.t3 the .a3h effe.t3 of tran3a.tion3 and other e?ent3 that enter into

the determination of net in.ome&

!he abo?e anal43i3 3how3 that there ha3 been e=ual le?el of flu.tuatin- in.rea3e and de.rea3e of

profit earnin- for 3ar3awat .ooperati?e ban7 e?en after fi?e 4ear3& Sara3wat .ooperati?e ban7 ha3

?er4 mu.h impro?ed it3 .a3h holdin-3 after fi?e 4ear3 .ompared to whi.h 3ara3wat .ooperati?e

ban7 ha3 in.rea3ed to a little per.enta-e&

Sara3wat .ooperati?e ban7 ha3 been 3li-htl4 in.rea3ed their -rowth of the ban7 ha?e

maintained flu.tuate le?el of -rowth and .a3h flow&

!hi3 3how3 that .a3h flow 3tatement i3 one of the important 3tatement3 for anal4Din- a

.ompan43 .a3h flow&

Su00'st+os=

'& pro?i3ion3 of taation ha?e been de.rea3ed on (*'( and (*' with .ompari3on of (*''

be.au3e Our o?ernment need3 more re?enue to pa4 for the 3er?i.e3 and pro-ram that are bein-

pro?ided to the publi. and the ta rate3 are in.rea3ed to rai3e the additional re?enue& And the

ele.ted offi.ial3 de.rea3e the taation&



66/91


(& pur.ha3e of fied a33et3 alwa43 ha?e been more but in (*'' there i3 le33 pur.ha3e of fied

a33et3 the .ompan4 a3 to impro?e in the inflow of .a3h in in?e3tin- a.ti?itie3



67/91


A'u)'



68/91


C"s# $%o& st"t'('t o t#' y'") 2448

P")t+!u%")s A(t + )s A(t +)s

C"s# $)o( o*')"t+0 "!t+,+t's

Net profit a3 per p>l a>. 21458.23

Add= "d>ust('t $o)

"epre.iation a33e3t3 )9*&)1

Fied a33e3t3 written off 9'&)

"epre.iation on in?e3tment (+*&'

/ro?i3ion of ta 9955&9)

/ro?i3ion for B""R (***&**,

/ro?i3ion for 3tandard a33e3t3 %*&+, 583;.:3

2841:.5;

L'ss profit on 3ale of a33e3t3 %'(&5,

/rofit on 3ale of 3e.uritie3 )55)&*

"eferred .ompen3ation '8)9&8

"eferred ta a33e3t3 %+*&++, 8281.7:

18527.31

Ad>ust('t

In.rea3e in in?e3tment %(**5&'8,

In.rea3e in ad?an.e3 %99(*1&1(,

In.rea3e in other a33e3t3 %'+)8&1*,

In.rea3e in fund3 %''9)+&)+,

In.rea3e in depo3it3 '5))*(&+'

In.rea3e in other liabilitie3 (*)*8&5

In.ome ta paid %)())&18, 33;:2.3;

Net .a3h from operatin- a.ti?ite3 :335;.;5

C"s# $)o( +,'st+0 "!t+,+t+'s

/ur.ha3e of fied a33e3t3 %55&51,

Sale pro.eed3 of fied a33e3t3 '9&18

Net .a3h from in?e3tin- a.ti?itie3 771;.:7

78;4.13

C"s# $)o( $+"!+0 "!t+,+t+'sIn.rea3e in 3hare .apital 9()&+*

In.rea3e in borrowin-3 %999'&**,

"i?idend paid %'((5&8(,

Net .a3h from finan.in- a.ti?itie3 52:;.2

N't +!)'"s' + !"s# "d !"s# '@u+,"%'ts 71543.31

C"s# "t -'0++0 o$ t#' y'") 11517.23

C"s# "t 'd o$ t#' y'") 1::1.:7



69/91


BALANCE SHEET AS ON 31 st MARCH 2448

LIABILITIES AMOUNT

Rs

ASSETS AMOUNT

Rs

e=uit4 Share Capital ++25129+251* Ca3h 0 Balan.e3 )(+'285*25*+

Bill3 .olle.tion '+2'(2*12+2+19Balan.e with Ban732 Mone4

at Call

+21+'28(921)

)

Re3er?e fund 0 other

re3er?e'*25)212182885 Mone4 at .all 0 3hort noti.e +*5*285)2***

"epo3it3 0 other a..ount3 '(12')2)5292)(9 In?e3tment3 5+1'28*+2595



70/91


Bill3 for .olle.tion bein-

bill3 re.ei?able a3 per

.ontra

'+'(2*12++19 Ad?an.e)'2'*52*8)295

9

Bran.h ad


71/91




72/91


PROFIT AND LOSS ACCOUNT FOR THE YEAR 2448

PARTICULARS AMOUNT

I!o('

Intere3t Earned '()991&*)

Other re.eipt3 85(&

!otal In.ome 9+'**(&5'

E*'d+tu)'

Intere3t on borrowin-3 1''*+&+5

Salarie3 '(19((&*8

Rent ((98(&5(

Law .har-e3 +*9()

Audit fee3 ('911'&'5

Other epen3e3 )))1'&9+/ro?i3ion3 1+589))+&8)

In.ome ta +5(5'&**

Tot"% E*'s's 16889132

:86

Net /rofit for the #ear (5'()+5&+'

Capital ******

Re3er?e fund and other '*5)1&*(

"epo3it3 and other ban7 '(1'))5&)1

Borrowin-3 99119+&)(

Other liabilitie3 9+99'51&(+ p>l a>. ('98'+)98(

Ca3h )(+'985*&8'

Balan.e with other ban73 and fori-en +1+'8(&1'

In?e3tment 588*)&'1

Ad?an.e3 )''*5*&*

Fied a33e3t3 )8*155&1*

Other a33e3t3 98(9*(&*1

!otal ((*8')9&)



73/91


C"s# $%o& st"t'('t o t#' y'") 2414

P")t+!u%")s A(t + )s A(t +)s

C"s# $)o( o*')"t+0 "!t+,+t's

Net profit a3 per p>l a>. 118;5.72

Add= "d>ust('t $o)

"epre.iation a33e3t3 ''9*&9*

Fied a33e3t3 written off '5&11

"epre.iation on in?e3tment 858&')

/ro?i3ion of ta 8'**&**

/ro?i3ion for B""R 21;.;4

/ro?i3ion for 3tandard a33e3t3 '*&** 12415.35

2387.58

L'ss profit on 3ale of a33e3t3 8&)(

/rofit on 3ale of 3e.uritie3 8*5'&8'

"effered .ompen3ation (*)&++

"effered ta a33e3t3 %'8)9&8, 75:.47

1822;.5:

Ad>ust('t

In.rea3e in in?e3tment %859&98,

In.rea3e in ad?an.e3 %''115&)1,

In.rea3e in other a33e3t3 %''(&'*,

In.rea3e in fund3 **+&19

In.rea3e in depo3it3 '5+))&((

In.rea3e in other liabilitie3 (8')&(5 237:.12

Operatin- a.ti?itie3 before ta '9))'&9

In.ome ta paid %5)'(&1,

Net .a3h from operatin- a.ti?ite3 after ta 12;;.54

C"s# $)o( +,'st+0 "!t+,+t+'s

/ur.ha3e of fied a33e3t3 %)++1&5,

Sale pro.eed3 of fied a33e3t3 (*)&++

Net .a3h from in?e3tin- a.ti?ite3 (8&8+ 3:7:.48

2;75;.38

C"s# $)o( $+"!+0 "!t+,+t+'s

In.rea3e in 3hare .apital )+&55

In.rea3e in borrowin-3 %'*'11&8+,

"i?idend paid %'5*9&'',

Net .a3h from finan.in- a.ti?itie3 14532.27

N't +!)'"s' + !"s# "d !"s# '@u+,"%'ts 3524.;3

C"s# "t -'0++0 o$ t#' y'") 1::1.:7

C"s# "t 'd o$ t#' y'") 121;72.81



74/91




75/91




76/91





LIABILITIES AMOUNT

Rs

ASSETS AMOUNT

Rs

Capital )9('''**

Re3er?e3 fund3 0ther

re3er?e3'88(9+*)' Ca3h 0 Balan.e3 '***'98859)

"epo3it3 and other a>. '5(99+()9'9

Balan.e with Ban732

Mone4 at Call 5)(5(1*(8

Borrowin-3 89(***19*1 Ad?an.e3 1(8*859)1(

Bill3 for .olle.tion3 bein-


.ontra

'55*81*'+)5 In?e3tment3 8('1''('

Bran.h ad


77/91


PARTICULARS AMOUNT

I!o('

Intere3t Earned '(+*588)

Other re.eipt3 5+')58&5+

!otal In.ome 6712:31

E*'d+tu)'

Intere3t on borrowin-3 18+)1&++

Salarie3 '5'(('&)'

Rent (+)91&91

Law .har-e3 598)9)'&11

Audit fee3 '1*+&89

Other epen3e3 1+8**)&)+

/ro?i3ion3 99+95)&(1

In.ome ta 5****+(')

!otal Epen3e34196211

:45 Net /rofit for the #ear '58)(*5

Capital ******

Re3er?e fund and other '88(9+*&1*

"epo3it3 and other ban7 '5(99+(&8+

Borrowin-3 89(***1&*9

Other liabilitie3 +8'(++(&((

p>l a>. '('+(8&)

Ca3h '***'9&'9

Balan.e with other ban73 and fori-en 5)(5(1&(

In?e3tment '8('1&**Ad?an.e3 1(85*8&'

Fied a33e3t3 ''+))9*&9

Other a33e3t3 +*8+*1+&1

!otal )91*9(&1



78/91


C"s# $%o& st"t'('t o t#' y'") 2411

P")t+!u%")s A(t + )s A(t +)s

C"s# $)o( o*')"t+0 "!t+,+t's

Net profit a3 per p>l a>. 2122;.52

Add= "d>ust('t $o)

"epre.iation a33e3t3 '859&*5

Fied a33e3t3 written off 5(&+

"epre.iation on in?e3tment '1))&8(/ro?i3ion of ta (89&9(

/ro?i3ion for B""R 32.1:

/ro?i3ion for 3tandard a33e3t3 91&* 1543.31

38834.43

L'ss profit on 3ale of a33e3t3 ()&19

/rofit on 3ale of 3e.uritie3 ))(&(*

"eferred .ompen3ation *8&(9



79/91


"eferred ta a33e3t3 +*1&'' 782:.:3

3:447.:4

Ad>ust('t

In.rea3e in in?e3tment (+(**&8*

In.rea3e in ad?an.e3 %((9'9&+9,

In.rea3e in other a33e3t3 %(9+&5),

In.rea3e in fund3 %((5&59,

In.rea3e in depo3it3 %((5&+9,

In.rea3e in other liabilitie3 '85(&(' :2:75.17

Operatin- a.ti?itie3 before ta 15:72.;7

In.ome ta paid %1*''&*,

Net .a3h from operatin- a.ti?ite3 after ta 2;::3.;5

C"s# $)o( +,'st+0 "!t+,+t+'s

/ur.ha3e of fied a33e3t3 %'15&1+,

Sale pro.eed3 of fied a33e3t3 *8&(9

Net .a3h from in?e3tin- a.ti?ite3 '**&8+ 1:3.17

2481.1

C"s# $)o( $+"!+0 "!t+,+t+'s

In.rea3e in 3hare .apital '99*&'

In.rea3e in borrowin-3 ()9'&55

"i?idend paid %'+1&5,

Net .a3h from finan.in- a.ti?itie3 2;72.17

N't +!)'"s' + !"s# "d !"s# '@u+,"%'ts ::4.33

C"s# "t -'0++0 o$ t#' y'") 121;72.81

C"s# "t 'd o$ t#' y'") 122183.27



80/91


BALANCE SHEET AS ON 2411

LIABILITIES AMOUNT

Rs

ASSETS AMOUNT

Rs

Capital '*()2(52'9*


re3er?e3 '925952+529'9 Ca3h 0 Balan.e3 ''2*+25(+2+8)

"epo3it3 and other a>. '8)2**129*+2(1Balan.e with Ban732

Mone4 at Call ((9(21('29*8

borrowin-3 )5892'82158&+) Ad?an.e3 5925((289(



.ontra

595*2882*18 In?e3tment3 8(28+299)29'(&9)

Bran.h ad


81/91


Tot"% L+"-+%+t+'s 211:4614267546154 Tot"% Ass'ts 211:4614267546154


PARTICULARS AMOUNT

I!o('

Intere3t Earned '8'(+((*

Other re.eipt3 95('5&58

!otal In.ome '8+918&58E*'d+tu)'

Intere3t on borrowin-3 1)51(*&91

Salarie3 '+'8))(&)(

Rent ++)95))

Law .har-e3 85)*9'

Audit fee3 ('*+*1&*8

Other epen3e3 '*9+195&(8

/ro?i3ion3 91&9

In.ome ta )'(*&**

!otal Epen3e3 )++((*((

Net /rofit for the #ear '91*)9(5&+)Capital ******

Re3er?e fund and other '9595+5&+*

"epo3it3 and other ban7 ''(9)+(

Borrowin-3 )589'8&+)

Other liabilitie3 )5)+(+(&(

p>l a>. ('(811)&*)

Ca3h ''*+5(+&9

Balan.e with other ban73 and fori-en ((9(1('&(1

In?e3tment 51''5'8&85

Ad?an.e3 ''8''11(

Fied a33e3t3 858++&8)Other a33e3t3 )(1959&9(

!otal 59+(*188&)



82/91


C"s# $%o& st"t'('t o t#' y'") 2412

P")t+!u%")s A(t + )s A(t +)s

C"s# $)o( o*')"t+0 "!t+,+t's

Net profit a3 per p>l a>. 23::;.82

Add= "d>ust('t $o)

"epre.iation a33e3t3 ('8(&8)

Fied a33e3t3 written off 9&

"epre.iation on in?e3tment (*(&91

/ro?i3ion of ta '*(18&8(

/ro?i3ion for B""R 7583.85

/ro?i3ion for 3tandard a33e3t3 '5* 21;;8.;3

7:22;.::

L'ss profit on 3ale of a33e3t3 '(&++

/rofit on 3ale of 3e.uritie3 581(&'9

"eferred .ompen3ation )'&8)

"eferred ta a33e3t3 '9(5&9) ;;11.18

3;1:.;

Ad>ust('t

In.rea3e in in?e3tment %+'8'&5(,

In.rea3e in ad?an.e3 %(55*+'&(9,

In.rea3e in other a33e3t3 %8(1&'5,

In.rea3e in fund3 %'9)8&(*,

In.rea3e in depo3it3 58'+5&1'

In.rea3e in other liabilitie3 '*'8&++ 2;21.5

Operatin- a.ti?itie3 before ta ;:735.17

In.ome ta paid %'*1))&1),

Net .a3h from operatin- a.ti?ite3 after ta :777.;;

C"s# $)o( +,'st+0 "!t+,+t+'s

/ur.ha3e of fied a33e3t3 %)'&(1,

Sale pro.eed3 of fied a33e3t3 )'&8)

Net .a3h from in?e3tin- a.ti?ite3 89&+)

3382.83

C"s# $)o( $+"!+0 "!t+,+t+'s

In.rea3e in 3hare .apital '5*)&5(

In.rea3e in borrowin-3 %5'89&89,

"i?idend paid %')9&9*,

Net .a3h from finan.in- a.ti?itie3 73;11.57

N't +!)'"s' + !"s# "d !"s# '@u+,"%'ts 5773.83

C"s# "t -'0++0 o$ t#' y'") 122183.27

C"s# "t 'd o$ t#' y'") 128;35.23



83/91





84/91




LIABILITIES AMOUNT

Rs

ASSETS AMOUNT

Rs

.apital ''912'9925)*


re3er?e3')285929)2'9 Ca3h 0 Balan.e3 '*29'+2''2*'*

"epo3it3 and other a>. '1(8(2+*12)(*' Balan.e with other Ban732 9'12'*(21++

borrowin-3 5'5*251)2*15 Ad?an.e3 '128(+2*5)2818



.ontra

')2+82+9*2))1 In?e3tment3 892(912)++2991

Bran.h ad


85/91


PARTICULARS AMOUNT

I!o('

Intere3t Earned '1('859(8

Other re.eipt3 ++'()8

!otal In.ome '11)9+*'*

E*'d+tu)'

Intere3t on borrowin-3 '*58)1

Salarie3 '))(+))

Rent 558)(92'*1

Law .har-e3 8''9')8

Audit fee3 (5)+989

Other epen3e3 '(1159(+

/ro?i3ion3 +')()'58

In.ome ta )1+(1)8

!otal Epen3e3 9198''1(1

Net /rofit for the #ear ('(55+1Capital '******

Re3er?e fund and other ')8599)

"epo3it3 and other ban7 '1(8(+*(

Borrowin-3 5'5*5*15

Other liabilitie3 )*(8)9)

p>l a>. (9*)11+*

Ca3h '*9++''*

Balan.e with other ban73 and fori-en 9'1'*(

In?e3tment 89(91)++

Ad?an.e3 '18(+*8

Fied a33e3t3 (*+88()Other a33e3t3 +1(5(*

!otal (++*185+9



86/91


C"s# $%o& st"t'('t o t#' y'") 2413

P")t+!u%")s A(t + )s A(t +)s

C"s# $)o( o*')"t+0 "!t+,+t's

Net profit a3 per p>l a>. 11248.11

Add= "d>ust('t $o)

"epre.iation a33e3t3 ('91&)+

Fied a33e3t3 written off 8&'1

"epre.iation on in?e3tment (')&5

/ro?i3ion of ta %1*8&),

/ro?i3ion for B""R 122:

/ro?i3ion for 3tandard a33e3t3 '9'&+' 7434.13

:8238.27

Le33 profit on 3ale of a33e3t3 (1&8*

/rofit on 3ale of 3e.uritie3 15'*&+

"eferred .ompen3ation *8&(9

"eferred ta a33e3t3 1+*9&+1 187:2.2

385;.8;

Ad>ust('t

In.rea3e in in?e3tment %''858+&5',

In.rea3e in ad?an.e3 %'*+*+'&*(,

In.rea3e in other a33e3t3 ''9&)8

In.rea3e in fund3 %8*95&8,

In.rea3e in depo3it3 ')1'9(&')

In.rea3e in other liabilitie3 %(*&)), 74:78.:1

Operatin- a.ti?itie3 before ta 5;2.::

In.ome ta paid %'''*+&'+,

Net .a3h from operatin- a.ti?ite3 after ta 11;8.52

C"s# $)o( +,'st+0 "!t+,+t+'s

/ur.ha3e of fied a33e3t3 %*'+&89,

Sale pro.eed3 of fied a33e3t3 *8&(9

Net .a3h from in?e3tin- a.ti?ite3 19&(1 2;1;.41

C"s# $)o( $+"!+0 "!t+,+t+'s

In.rea3e in 3hare .apital 111&(+

In.rea3e in borrowin-3 %+'5&18,

"i?idend paid %(**9&(5,

Net .a3h from finan.in- a.ti?itie3 1521.82

N't +!)'"s' + !"s# "d !"s# '@u+,"%'ts 1;1245.;:

C"s# "t -'0++0 o$ t#' y'") 128;35.23

C"s# "t 'd o$ t#' y'") 113728.:



87/91





88/91




LIABILITIES AMOUNT

Rs

ASSETS AMOUNT

Rs

.apital '2(912*1(215*


re3er?e3(2*258*2*(+ Ca3h 0 Balan.e3 )2911285*2+8

"epo3it3 and other a>. (''2552'925*8 Balan.e with other Ban732 '*2892(*(21*)

borrowin-3 52*912**(2+(8 Ad?an.e3 '8*2(52'8*2818



.ontra

'1219*21)2998 In?e3tment3 95255*2*925++

Bran.h ad


89/91


PARTICULARS AMOUNT

I!o('

Intere3t Earned ((1*8*'+*

Other re.eipt3 +5)8+'++

!otal In.ome *1*'15

E*'d+tu)'

Intere3t on borrowin-3 '9'9*(95(5

Salarie3 ('9)*115

Rent 8(8'+59

Law .har-e3 +55'18

Audit fee3 ()51*(

Other epen3e3 '5(8*'9

/ro?i3ion3 (155*('9

In.ome ta '')('(*(

!otal Epen3e3 (9+8)()('8

Net /rofit for the #ear ''(*1'*Capital '(91*1(5*

Re3er?e fund and other (*58*

"epo3it3 and other ban7 (''55&*8

Borrowin-3 5*91**((8

Other liabilitie3 1()(*)(

p>l a>. ''()8)*+*

Ca3h )91185*+*

Balan.e with other ban73 and fori-en '*89(*(*)

In?e3tment 9555**9

Ad?an.e3 '8*(5'8*

Fied a33e3t3 88+)(8&59Other a33e3t3 '***(''()

!otal 8(()')'))



90/91


BIBLIOGRAPHY

IFIM COLLEGE PAGE 9


91/91


BIBLIOGRAPHY

Boos =?

M""0'('t A!!out+0?P)+!+*%'s "d P)"!t+!'./6 ? By S#")(" R.K Gu*t"

S#"s#+ K E+0#t# Ed+t+o6 K"%y"+ Pu-%+s#')Js6 B"0"%o)'

F+"!+"% M""0'('t "d Po%+!y/6 ? By B#"%%" V.K

F+)st Ed+t+o6 Au"% Pu-%+!"t+os6 N'& D'%#+.

M""0'('t A!!out+0 "d F+"!+"% Cot)o%/6 ? By M"#'s#&")+ S.N

T#+)t'' Ed+t+o6 Su%t" C#"d Sos6 N'& D'%#+ 2442.

R's'")!# M't#odo%o0y?M't#ods T'!#+@u's/6 ? By Kot#")+ C.R

S'!od Ed+t+o6 V+s#&" P)""s#" D'%#+ 1884.

cash flow statment

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