Project Ratio Analysis PDF

Ratio Analysis
INRODUCTION
MEANING OF FINANCIAL STATEMENTS:-
Financial statements refer to such statements which contains

financial information about an enterprise. They report profitability and
the financial position of the business at the end of accounting period.
The team financial statement includes at least two statements which
the accountant prepares at the end of an accounting period. The two
statements are: -
1. The Balance Sheet
2. Profit And Loss Account
They provide some extremely useful information to the extent
that balance Sheet mirrors the financial position on a particular date
in terms of the structure of assets, liabilities and owners equity, and
so on and the Profit And Loss account shows the results of operations
during a certain period of time in terms of the revenues obtained and
the cost incurred during the year. Thus the financial statement
provides a summarized view of financial positions and operations of a
firm.
MEANING OF FINANCIAL ANALYSIS
The first task of financial analysis is to select the information

relevant to the decision under consideration to the total information
contained in the financial statement. The second step is to arrange the
information in a way to highlight significant relationship. The final
step is interpretation and drawing of inference and conclusions.
Financial statement is the process of selection, relation and
evaluation.
Bhagwan Mahavir College Of Management,Surat Page 1

Ratio Analysis
Features of Financial Analysis...
- To present a complex data contained in the financial

statement in simple and understandable form.
- To classify the items contained in the financial statement

inconvenient and rational groups.
-To make comparison between various groups to draw various

conclusions.
- Purpose of Analysis of financial statements
-To know the earning capacity or profitability.
-To know the solvency.
- To know the financial strengths.
-To know the capability of payment of interest & dividends.
-To make comparative study with other firms.
-To know the trend of business
-To know the efficiency of mgt.

-To provide useful information to mgt
Bhagwan Mahavir College Of Management,Surat.
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Ratio Analysis
Procedure of Financial Statement Analysis
The following procedure is adopted for the analysis and

interpretation of financial statements:-
The analyst should acquaint himself with principles and

postulated of accounting. He should know the plans and policies of
the management so that he may be able to find out whether these
plans are properly executed or not.
The extent of analysis should be determined so that the

sphere of work may be decided. If the aim is find out. Earning capacity
of the enterprise then analysis of income statement will be
undertaken. On the other hand, if financial position is to be studied
then balance sheet analysis will be necessary.
The financial data be given in statement should be recognized

and rearranged. It will involve the grouping similar data under same
heads. Breaking down of individual components of statement
according to nature. The data is reduced to a standard form.
A relationship is established among financial statements with

the help of tools & techniques of analysis such as ratios, trends,
common size, fund flow etc.
The information is interpreted in a simple and

understandable way. The significance and utility of financial data is
explained for help indecision making.
The conclusions drawn from interpretation are presented to

the management in the form of reports.
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Ratio Analysis
TYPES OF FINANCIAL ANALYSIS
A) Classification on the basis of natural used
a) External Analysis
Outsiders, who don’t have access to the detailed internal

accounting records of the business firm, do this analysis. The
seoutsiders parties are potential investor, creditors, government
agencies, credit agencies & general public
.
b)Internal Analysis
The analysis conducted by person who has access to the

internal accounting records of a business firm is known as internal
analysis.
B) On the basis of modus operand
a) Horizontal Analysis:
Horizontal analysis refers to the comparison of financial data

of a company for several years. The figures of this type of analysis are
presented horizontally over a no. of columns. This type of analysis is
also called “Dynamic Analysis”.
b) Vertical Analysis:
This analysis refers to the study of relationship of the

various it easing the financial statements, of one accounting period. It
is also known as “Static analysis”.
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Ratio Analysis
FUNCTIONS OF FINANCE DEPARTMENT
The functions of finance department include the following areas:
1) Effective management of financial resources of the company.
2) Coordinates & Monitors the functions of accounts activities in the

units/marketing offers.
3) Establish and maintain systems of financial control, internal check

and render advice on financial & accounting matters including
examination of feasibility report and detailed project reports.
4) Establish and maintain proper system of budgetary control, cost
control and management reporting.
5) Maintain financial accounts and compile annual periodical

accounts in accordance with the companies Act, 1956, ensuring the
audit of accounts as per law/ Govt. directions.
6) Looks after overall funds management and arranges funds required

for the capital schemes and working capital form govt., banks and
financial institutions etc.
7)Timely payment of all taxes, levies & duties under the Law,
Maintenance of records and filing returns statements connected with
such taxes, levies and duties with the appropriate authorities , as per
law.
All the power involving financial implications are to e exercised in

prior consultation with head of concerned finance department. In the
event of any difference of opinion between the General Manger and the
Head of Finance Dept., the matter shall be referred to Managing
Director who after consulting Director (Finance) shall issue
appropriate instruction after following the prescribed procedures.
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Ratio Analysis
METHODS OF FINANCIAL ANALYSIS
A number of methods can be used for the purpose of analysis

of financial statements. These are also termed as techniques or tools
of financial analysis. Out of these, and enterprise can choose those
techniques which are suitable to its requirements. The principal
techniques of financial analysis are:
1. Comparative Financial Statements.
2. Common – size Statements
3. Trend Analysis
4. Funds Flow statements
5. Cash Flow Statement
COMPARATIVE FINANCIAL STATEMENTS
When financial statements figures for two or mote years are

placed side-side to facilitate comparison, these are called ‘comparative
Financial Statements’.
Such statements not only show the absolute figures of various

years but also provide for columns to indicate to increase ort decrease
in these figures from one year to another. In addition, these
statements may also show the change from one year to another on
percentage form. Such cooperative statements are of great value in
forming the opinion regarding the progress of the enterprise.
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Ratio Analysis
PURPOSE OR UTILITY OR IMPORTANCE OF

COMPARATIVE STATEMENTS:
1. To make the Data simpler and more understandable

2. To indicate the Trend
3. To indicate the strong points weak points of the concern
4. To compare the firms performance with the average performance of
the industry
5. To help in forecasting.
FORMS OF PRESENTING COMPARATIVE STATEMENTS
1. To show only the absolute data of various items or in other words to

show only rupee am ounts of various items.
2. To show the increases and decreases in data in terms of money
values
3. To show the increases and decreases in data in terms of
percentages
4. Comparison expressed in ratios
5. Use of cumulative figures and averages.
COMPARATIVE BALANCE SHEET
The Comparative Balance Sheet as on two or more different

dates can be prepared to show the increase or decrease in various
assets, liabilities and capital. Such a comparative Balance Sheet is
very useful in studying the trends in a business enterprise.
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Ratio Analysis
ADVANTAGES OF COMPARATIVE BALANCE SHEET
1. Helpful for comparison.

2. Helpful in knowing changing in the size of items.
3. Helpful in knowing trends.
4. Link between income statement and Balance sheet
COMPARATIVE PROFIT & LOSS ACCOUNT
Profit and loss account shows the net profit or net loss of a
particular year whereas comparative profit and loss account for a
number of years provides the following information.
1. Rate of increase or decrease in gross profit

2. Rate of increase or decrease in operating profit.
3. Rate of increase or decrease in cost of goods sales.
4. Rate of increase or decrease in net profit.
5. Rate of increase or decrease in sales.
TREND ANALYSIS
Trend percentage are very useful is making comparative study of

the financial statements for a number of years. These indicate the
direction of movement over a long tine and help an analyst of financial
statements to form an opinion as to whether favorable or unfavorable
tendencies have developed. This helps in future forecasts of various
items.
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Ratio Analysis
For calculating trend percentages any year may be taken as the

‘base year. Each item of base year is assumed to be equal to 100 and
on that basis the percentage of item of each year calculated.
RATIO ANALYSIS
MEANING:
Absolute figures expressed in financial statements by

themselves are meaningfulness. These figures often do not convey
much meaning unless expressed in relation to other figures. Thus, it c
an be say that the relationship between two figures, expressed in
arithmetical terms is called a ratio.
“According to R.N. Anthony.”
“A ration is simply one number expressed in terms of another.
It is found by dividing one number into the other.”
TYPES OF RATIOS
1. Proportion or Pure Ratio or Simple ratio.

2. Rate or so many Times.
3. Percentage
4. Fraction.
OBJECTS AND ADVANTAGES OR USES OF

RATIOANALYSIS
 Helpful in analysis of financial statements.
 Simplification of accounting data.
 Helpful in comparative study.
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Ratio Analysis
 Helpful in locating the weak spots of the business.
 Helpful in forecasting
 Estimate about the trend of the business.
 Fixation of ideal standards.
 Effective control Study of financial soundness.
LIMITATION OF RATIO ANALYSIS
 False accounting data gives false ratios.
 Comparisons not possible of different firms adopt different

accounting policies.
 Ratio analysis becomes less effective due to price level change

Ratios may be misleading in the absence of absolute data.
 Limited use of a single Ratio.
 Window-Dressing.
 Lack of proper standards.
 Ratio alone are not adequate for proper conclusions.
 Effect of personal ability and bias of the analyst.
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Ratio Analysis
CLASSIFICATION OF RATIOS
I. Liquidity Ratios:
These are the ratios which measure the short-term solvency or
financial position of a firm. These ratios are calculated to comment
upon the short-term paying capacity of a concern or the firm’s ability
to meet its current obligations
II. Long –Term Solvency and Leverage Ratios:

Long-term solvency ratios convey a firm’s ability to meet the
interest cost and repayment schedules of its long-term obligation e.g.
Debit Equity Ratio and Interest Coverage Ration. Leverage Ratios.
III. Activity Ratios:

Activity ratios are calculated to measure the efficiency with
which the resources of a firm have been employed. These ratios are
also called turnover ratios because they indicate the speed with which
assets are being turned over into sales e.g. debtors turnover ratio.
IV. Profitability Ratios:

These ratios measure the results of business operations or
overall performance and effective of the firm e.g. gross profit ratio,
operating ratio or capital employed. Generally, two types of
profitability ratios are calculated.
(a)In relation to Sales, and
(b)In relation in Investment
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Ratio Analysis
Types of ratios:
Some of the different types of ratios that can be calculated from

data in the financial statements and used to evaluate a business
include:
1) Liquidity ratios
2) Solvency ratios
3) Activity ratios
4) Profitability ratios
1) Liquidity ratios:
Liquidity ratios measure a business’s ability to cover its

obligations, without having to borrow or invest more money in the
business. The idea is that there should be sufficient cash and assets
that can be readily converted into cash to cover liabilities as they come
due.
One of the most common liquidity ratios is:
Current Ratio = Current Assets / Current Liabilities
Current assets basically include cash, short-term investments and

marketable securities, accounts receivable, inventory, and prepaid
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Ratio Analysis
expenses. Current liabilities include accounts payable to vendors and

employees, and installments on notes or loans that are due within one
year.
This ratio could also be seen as a measure of working capital –

the difference between current assets and current liabilities. A
company with a lot of working capital will be in a better position to
expand and improve its operations. On the contrary, a company with
negative working capital does not have sufficient resources to meet its
current obligations, and therefore is not in a position to take
advantage of opportunities for growth.
Another stringent test of liquidity is the:
Acid-test Ratio = Current Assets minus Inventories

/ Current Liabilities
Inventory is a current asset that may or may not be quickly

converted into cash. This depends on the rate at which inventory is
being turned over. By excluding inventory, the acid-test ratio only
considers that part of current assets that can be readily converted into
cash. This ratio, also called the Quick Ratio, tells how much of the
business's short-term debt can be met by using the company's liquid
assets at short notice.
A ratio that shows how many times inventory is turned over, or

sold during the period is:
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Ratio Analysis
Inventory Turnover Ratio = Cost of Goods Sold /

Average Inventory
A high turnover ratio is a sign that products are being

produced and sold quickly during the period. A ratio of 1.0, for
example, would mean that at any given time you have enough
inventories on hand to cover sales for the entire period. The higher
this ratio, the more quickly inventory is being turned over and
producing assets that are more liquid -- accounts receivable and then
cash.
If you want an even clearer idea of exactly how much ready

cash is on hand to cover current liabilities, you can use the:
Cash ratio = Cash + Marketable securities / Current

Liabilities
The cash ratio measures the extent to which a business could quickly cover
short-term liabilities, and therefore is of particular interest to short-term creditors. A
ratio of 1.0 would indicate that all current liabilities would be covered at any average
point in time by cash and marketable securities that could be readily sold and
converted to cash. A ratio of less than 1.0 would mean that other assets, such as
accounts receivable or inventory, would have to be converted to cash to cover short-
term obligations. A ratio of greater than 1.0 means that there is more than enough cash
on hand.
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Ratio Analysis
2) Solvency Ratios:
Solvency ratios are measures to assess a company’s ability

to meet its long-term obligations and thereby remain solvent and
avoid bankruptcy. Two general, overall solvency ratios include:
Solvency Ratio = Total Assets / Total Liabilities
AND
Solvency Ratio = Net Worth (Total Capital or Equity) /

Total Liabilities
These ratios basically tell whether a company owns more than it

owes. The higher the ratio, the more solvent the company
Another ratio that can tell how much a company relies on debt to
finance its assets is:
Debt Ratio = Total Debt / Total Assets
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Ratio Analysis
Traditionally, both short-term and long-term debts and assets

are used in determining this ratio. In general, the lower a company’s
reliance on debt to finance its assets, the less risky the company.
The debt to equity ratio is a measure of a company’s leverage –

how much financing it has in the form of debt as compared with how
much it has invested in the business.
Debt-equity Ratio = Total Liabilities / Total

Owners’ Equity,
Or
Debt-equity Ratio = Long-Term Liabilities / Total

Owners’ Equity
In assessing solvency, it is also important to take into

consideration the breakdown of a company’s liabilities. Not all
liabilities are debt in the form of bank loans or notes payable, for
example. There are also accounts payable to vendors, salaries and
wages payable, taxes payable, and accrued liabilities, among others.
One of the measures of what debt constitutes in terms of total
liabilities is:
Indebtedness Ratio = Total Debts / Total Liabilities
In general, a company that is heavy on debt may be better

leveraged, but is also less solvent.
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Ratio Analysis
The debt repayment terms are another consideration. Short-term

debt, payable within one year, may pose a greater burden on cash flow
and eventual solvency than long-term debt, which is due beyond one
year. A ratio used to quantify this is:
Short-term Debt Ratio or Quality of Debt = Short-term

Debt / Total Debt
A lower value for this ratio would indicate less concern for
installments coming due within a year.
There are other ratios intended to assess a company’s capacity to

cover its debt repayments and financing costs. One of these ratios
measures how interest expense is being covered by the net income the
company is generating:
Interest expense coverage = Net income before

interest and taxes / Interest expense
This ratio is also called Number of Times Interest Earned, and

represents how many times the net income generated by the company,
without considering interest and taxes, covers the total interest
charge. The higher the ratio the more solvent the company.
3) Activity Ratios:
Many useful gauges of operations can be calculated from data

reported in the financial statements. For example, you can determine
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Ratio Analysis
the average number of days it takes to collect on customer accounts,

the average number of days to pay vendors, and how much of the
operation is effectively being financed with payment terms extended by
vendors.
Accounts Receivable Turnover = Total Credit Sales /

Average Accounts Receivable
This tells you the average duration of accounts receivable for

credit sales to customers. This in turn can be expressed in terms of
the collection period, as follows:
Average Collection Period = Days in Year /

Accounts Receivable Turnover
4) Profitability Ratios:
One of the most common profitability ratios is the profit

margin. This can be expressed as the gross profit margin or net profit
margin, and it can be expressed by company, by sector, by product, or
by individual unit. The information reported on the income statement
will enable you to determine the overall profit margin. If additional
breakdowns are provided, more detailed margins can be calculated.
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Ratio Analysis
Gross Profit Margin = Gross Income / Total Revenue
Net Profit Margin = Net Income / Total Revenue
1.1 INDUSTY PROFILE:
Bank and banking are the most important and major factor in
today’s world economy. Each and every transaction is routed through
banking. Not a single business is possible without banking activity. The
bank and the business are related. Today we cannot imagine the business
world without banking institution. Banking is an important as blood in the
human body. Due to the development of banking , advances are increased
and business activity developing so it is rightly said, “The development of
banking is not only root but also the result of the development of the
business world.
The activity and facility provided by the bank such as collection of

deposits from small investor, lending finance and leasing / cash credit,
routine transaction is very important for economic growth on whole.
Every economic activity is done through bank in this new era. So

economy whether it is developed, under developing or under developed need
strong banking system from the economic point of view. The major task of
bank and other financial institution is to act as intermediaries channeling,
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Ratio Analysis
saving to investment. Through them, the investment requirements of savers

are reconciled with the credit need of investors and consumers
DEFINITION OF BANKING:
A banking company is defined as a company, which transacts

the business of banking in India. The Banking Regulation Act defines the
business as banking by stating the essential function of a banker. It also
states the various other businesses a banking company may be engaged in
and prohibits certain business to be performed by it. The term ‘banking’ is
defined as “accepting”, for the purpose of lending or investment, of deposits
of money from the public, repayable on demand or otherwise, and
withdrawal by cheque draft, order or otherwise.
STRUCTURE OF BANKING IN INDIA:
The structure of the banking industry, its performance and

efficiency which in turn, affects the banks’ ability to collect savings and
channel them into productive investments. The success of banking sector
very much depends on the ownership of banks-whether private or public or
mixed-whether the industry in competitive or regulated in terms of interest
rates, spreads between lending and deposit rates, and whether service
charges are competitively determined or regulated by government or the
central bank.
India banking system comprises of both organized & unorganized

banks. Unorganized banking includes bankers & village money-
lenders.
: CO-OPERATIVE BANK:
DEFINATION:
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Ratio Analysis
“A Co-operative is an autonomous of persons united

voluntarily to meet their common economic, social and cultural needs
and aspirations trough a jointly owned and democratically controlled
enter price”.
STUCTURE OF CO-OPERATIVE BANK:

The Co-operative banking structure on India may be divided into three
components:
1} State Co-operative Banks
2} Central C-operative Banks
3} Primary Co-operative Credit societies
1} State Co-operative Banks:

The state co-operative bank is federation of central co-
operative bank and acts as a watchdog of the co-operative banking
structure in the state. Its funds are obtained from the share capital,
deposits, loans and overdrafts from the Reserve Bank of India. The
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Ratio Analysis
state co-operative Bank lends money to Central co-operative Banks

and primary societies and not directly to farmer
2} Central urban Co-operative Banks:

These are the federations of primary in a district and are of
two years those having a membership of societies as well as
individuals. The funds of the bank consist of share capital, deposits
and overdrafts from state co-operative bank and joint stocks. These
bank finance member societies within the limits of the borrowing
capacity of societies, they also conduct all the business of joint stock
bank.
3} Primary co-operative credit societies:

The primary co-operative credit societies are an association of
borrowers and non-borrower residing in a locality in a particular
locality. The funds of the society are from the share capital and
deposits of members and loans from central co-operative banks. The
borrowing power of the members as well as of the society is fixed. The
loans are given to members for the purpose of cattle, fodder, fertilizers,
pesticides, implements etc.
BRIEF HISTORY OF URBAN CO-OPERATIVE BANKS IN

INDIA
Co-operative banks in this country are a part of vast and

powerful structure of co-operative institutions which are engaged in
tasks of production, processing, marketing, distribution, servicing and
banking in India. The beginning co-operative banking in this country
dates back to about 1904, when official efforts were made to create a
new type of institution based on principles of co-operative organization
& management, which were considered to be suitable for solving the
problems peculiar to Indian conditions.
In rural areas, as far as the agricultural and related activities are

concerned, the supply of credit was inadequate, and money lenders
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Ratio Analysis
would exploit the poor people in rural areas providing them loans at
higher rates.
Co operative Banks in India are registered under the Co-operative

Societies Act. The cooperative bank is also regulated by the RBI. They
are governed by the Banking Regulations Act 1949 and Banking Laws
(Co-operative Societies) Act, 1965.
Definition:
A co-operative bank is a financial entity which belongs to its

members, who are at the same time the owners and the customers of
their bank. Co-operative banks are often created by persons belonging
to the same local or professional community or sharing a common
interest. Co-operative banks generally provide their members with a
wide range of banking and financial services.
Initiatives towards development of co-operative banks:
1. Reorganization of PACS’s (a scheme by NABARD).

2. Licensing of new USB’s liberalized.
3. National Co-operative Bank of India (NCBI) was registered in
1993.(Multi-state co-operative society)-it has no regulatory
functions.
4. Co-operative development bank (set up by NABARD).
5. Lending and borrowing rates of all co-operative have been more
or less completely freed or deregulated.
6. Allowing all PCB’s to undertake equipment leasing and hire-
purchase financing
Establishments:
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Ratio Analysis
· Co-operative bank performs all the main banking functions of

deposit mobilization, supply of credit and provision of
remittance facilities.
· Co-operative Banks belong to the money market as well as to
the capital market.
· Co-operative Banks provide limited banking products and are
functionally specialists in agriculture related products. However,
co-operative banks now provide housing loans also.
· UCBs provide working capital loans and term loan as well.
Functions:
· Co-operative Banks are organized and managed on the principal

of co-operation, self-help, and mutual help. They work on the
basis of “no profit no loss”. Profit maximization is not their goal.
· Co-operative banks do banking business mainly in the
agriculture and rural sector. However, UCBs, SCBs, and CCBs
operate in semi-urban, urban, and metropolitan areas also.
· The State Co-operative Banks (SCBs), Central Cooperative
Banks (CCBs) and Urban Co-operative Banks (UCBs) can
normally extend housing loans up to Rs 1 lakh to an individual.
The scheduled UCBs, however, can lend up to Rs 3 lakh for
housing purposes. The UCBs can provide advances against
shares and debentures.
Cooperative banks in India finance rural areas under:
· Farming
· Cattle
· Milk
· Hatchery
· Personal finance
Cooperative banks in India finance urban areas under:
· Self-employment
· Small scale units
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Ratio Analysis
· Home finance
· Consumer finance
· Personal finance
Some facts about Cooperative banks in India
· Some cooperative banks in India are more forward than many of

the state and private sector banks.
· According to NAFCUB the total deposits & lending of
Cooperative Banks in India is much more than Old Private
Sector Banks & also the New Private Sector Banks.
· This exponential growth of Co operative Banks in India is
attributed mainly to their much better local reach, personal
interaction with customers, and their ability to catch the nerve
of the local clientele.
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2. Indian banking system: Development banks: National Bank of
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3. Indian banking system: Development banks: Small scale
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4. Co-operative Banks in India
5. Role of development banks in the Indian economy
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Private Sector
7. Committee on Indian Banking Sector Reforms: Narasimhan
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banking system
Page 25
Ratio Analysis
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Banking”
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Ratio Analysis
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1.2 Company profile
THE SURAT PEOPLE ’S CO-OP. BANK LTD.
Ø INTRODUCTION:
With the advent of the 20th century, Co-operative
Movement started in India. Late Raosaheb Varundavan Jadav -
a visionary dreamt of establishing Co-operative Bank. This
Dream turned into reality in the name of The Surat Peoples
Co-operative Bank Ltd.
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Ratio Analysis
The Surat People’s Co-operative Bank Ltd was

established in 1922 at Surat. Bank was registered on 10th
March, 1922 and started functioning from 21st April,
1922.The Bank was first registered Urban Co-Operative Bank
in India and became Scheduled Bank on 1st September,
1988.
The Bank is serving since last 87 years to the people

of Surat. The bank is having network of 21 branches, 19 in
Surat and 1 branch at Vapi and 1 branch at Navsari.
he Bank is the "First Registered Urban Co-operative Bank" of

India and among the first 13 Co-operative Banks to get the "Scheduled
Bank" Status. It is the first Bank to provide the "Depository
Participant Services" in South Gujarat.
Over the years, The Surat People’s Co-operative Bank has set
its eyes on the strategic planning for the future in order to arm itself
to face competition in the wake of sea change that the banking
industry has been witnessing on account of policy of liberalization of
economy. Within the introduction of ‘On-Line’ Computer System’ at all
branches of the bank; it is now well posed to render sustained,
satisfactory customer service. It has also introduced ‘Tele-Banking
Facility’. Linking of all its branches by satellite-switchgear from Local
Area Network System (LAN) to Wide Area Network system (WAN) in
due course is also contemplated. Efforts to open Banks branches at
the key centre of Gujarat as also at Mumbai are already underway. It
has introduced performance budgeting system since the year 1993
and has been concentrating on need based training of it
“VASUDHARA”, I.E. GODDESS OF PROPSPERITY is the

symbol of the bank. “Vasu” means Wealth & “Dhara” means flow. So
Vasudhara means safeguard the flow of wealth and to consolidate
multiply and distribute it to the people for their well-being. Blessed by
“VASUDHARA”, these young illustrious banks has crossed a number
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Ratio Analysis
of mile stones during its journey on the path of progress and is well
set to cross many of more of them during its perpetual march thereon.
Ø Other Services:
Safe Deposit Lockers
Depository Service
Branch Connectivity
ATM Service
SMS banking Services
VAT Services
Demand Draft & Pay Orders
Any Branch Banking
General Insurance
Foreign Exchange
1) Safe Deposit Lockers :
The Surat People's Co-Op. Bank Ltd. offer safe deposit lockers
for safety of your valuables. We offer safe deposit vault or locker at a
no of branches at reasonable rent depending upon the size of locker.
Kindly contact Depository Service to your nearest branch for this
facility.
2) Depository Service :
DEMAT Account Through Surat People's Bank:
Page 29
Ratio Analysis
· Physical Security holding are converted into Electronic holdings

so no fear about loss of paper form securities, theft, fire or
mutilation.
· No worry about bad delivery.
Comfort / Convenience
· Speedy sale-purchase & transfer.

· No botheration for storing and preservation nor loss of
securities.
· Sale-purchase, credit-debit by written mandate only.
· Freedom from inconvenience due to wrong signature and other
objection in stock exchange.
· Security transfer without share transfer forms.
· Freedom from botheration to inform change of address to all the
companies.
· Dematerialization facility available.
· Easy to pledge as security and to get loan.
· Direct credit of corporate benefits like Bonus, Market Shares
and Right Share in your account.
· Direct credit of Shares, Securities purchased from Market.
Nominal Service Charges
· No stamp duty expense on transfer of securities.

· Saving of postal expenses and time etc.
· Very small amount of brokerage for sale / purchase of shares
and securities
· Competitive interest will be charged on loans/advances against
DEMAT shares & securities.
Depository Participant Service Dept. :
SMS
Branch Name Address
Banking
'Vasudhara', Parasi Sheri, 98792

Head Ofiice
Navapara, Surat - 395003 02918
Nanpara-Athwa First Floor, Beside Bank of Baroda, 98792

Lines Branch Athwa Gate, Surat - 395001. 02918
Page 30
Ratio Analysis
RanderRoad Morar Mansion, Adajan Patia, Surat 98792

Branch - 395009. 02918
"Krishna Complex", Opp.

BhatarRoad 98792
L.B.Cinema, Bhatar Road, Surat -
Branch 02918
395001.
3) Branch Connectivity:
You may transact 24 * 7 banking from any

branch.
4) ATM Service:
It is a 24 * 7 service for your cash requirement.
· Branches have such facilities:
Branch Name Address
'Vasudhara',
Main Branch ParasiSheri,
Navapara,
Page 31
Ratio Analysis
Surat - 395003
'Vasudhara',
PaniuniBhint,
Bhagar talav
SoniFalia,
Branch
Bhagartalav,
Surat - 395003
Opp.SubJail,
Khatodara Branch RingRoad,
Suart - 395002.
"KrishnaComplex",
Bhatar Road Opp.L.B.Cinema,
Branch BhatarRoad,
Surat - 395001.
ShashvatApartment,
UmraJakatnaka GroundFloor,
Branch UmraJakatnaka,
Surat - 395007.
AbhishekApartment,
KapadiaCompound,
Sumul Dairy Road
SumulDairyRoad,
Surat - 395008.
OppPoliceStation,
UdhanStationRoad,
Udhna Branch NearSBI,
Udhna,
Surat - 395003.
PlotNo.-1084,
RoadNo.-6,
Sachin Branch G.I.D.C.,
Sachin,
Surat.
'VasudharaBhavan'
Timaliawad,
Timaliawad Branch
Nanpura,
Surat - 395001.
Page 32
Ratio Analysis
5) SMS banking Services:
Our bank being always ahead in customer related services

has introduced a new service for our customers. Customers will be
able to remain in constant touch of the bank through their mobile
phones.
Salient features of the above mentioned SMS bank service are

as follows:
· The information of all your accounts on your single cell phone.

· 24 * 7 services.
· SMS service for Customers:
Customers can send SMS from their cell phones to

receive below mentioned responses.
Details SMS
Current balance of Accounts 1
2
Back dated balance of accounts
DDMMYY
Cheques details 3 111111
Return clearing information & cheque returned on debit

4
clearing
Other bank information 5
Help 6
6) VAT (View Account Terminal) Services:
You can easily have information on the screen about your

account details like balance and latest transaction. VAT are placed at
all of our branches.
Page 33
Ratio Analysis
View Account Terminal :

1. In idle state VAT displays details of various loans and deposits
offered by the bank.
2. On touching the screen by finger (do not use any SHARP object)
VAT will start.
7) Demand Draft & Pay Orders:
Demand Draft:
Demand Draft is way for remitters to transfer money

A demand draft is more secure than a normal cheque as it can only be
credited to a specific payee's account, and a customer can only be
reimbursed under indemnity if the draft is lost or stolen.
People's bank draft is a low-cost, convenient method of payments.
PayOrderService:
Pay order is secure way to make payment. Pay order can be

made of your party's name. And it is best proof of payment of this
amount and on date. so, instead of giving cheque you can make pay
order from bank and bank will make a payment from your account.
8) Branches Network:
Page 34
Ratio Analysis
Main Office
Sagrampara Branch
Salabatpura Branch
Bhagatalav Branch
......
Page 35
Ratio Analysis
A lower value for this ratio would indicate less concern for
installments coming due within a year.
There are other ratios intended to assess a company’s capacity to

cover its debt repayments and financing costs. One of these ratios
measures how interest expense is being covered by the net income the
company is generating:
Interest expense coverage = Net income before

interest and taxes / Interest expense
This ratio is also called Number of Times Interest Earned, and

represents how many times the net income generated by the company,
without considering interest and taxes, covers the total interest
charge. The higher the ratio the more solvent the company.
1) Activity Ratios:
Many useful gauges of operations can be calculated from data

reported in the financial statements. For example, you can determine
the average number of days it takes to collect on customer accounts,
the average number of days to pay vendors, and how much of the
operation is effectively being financed with payment terms extended by
vendors.
Accounts Receivable Turnover = Total Credit Sales /

Average Accounts Receivable
Page 36
Ratio Analysis
SUMMER INTERNSHIP PR This tells you the average

duration of accounts receivable for credit sales to customers. This in
turn can be expressed in terms of the collection period, as follows:
Average Collection Period = Days in Year /

Accounts Receivable Turnover
4) Profitability Ratios:
One of the most common profitability ratios is the profit

margin. This can be expressed as the gross profit margin or net profit
margin, and it can be expressed by company, by sector, by product, or
by individual unit. The information reported on the income statement
will enable you to determine the overall profit margin. If additional
breakdowns are provided, more detailed margins can be calculated.
Gross Profit Margin = Gross Income / Total Revenue
Net Profit Margin = Net Income / Total Revenue
Page 37
Ratio Analysis
OJECT (SIP) REPORT ON

1.1 INDUSTY PROFILE:
Bank and banking are the most important and major factor in
today’s world economy. Each and every transaction is routed through
banking. Not a single business is possible without banking activity. The
bank and the business are related. Today we cannot imagine the business
world without banking institution. Banking is an important as blood in the
human body. Due to the development of banking , advances are increased
and business activity developing so it is rightly said, “The development of
banking is not only root but also the result of the development of the
business world.
The activity and facility provided by the bank such as collection of

deposits from small investor, lending finance and leasing / cash credit,
routine transaction is very important for economic growth on whole.
Every economic activity is done through bank in this new era. So

economy whether it is developed, under developing or under developed need
strong banking system from the economic point of view. The major task of
bank and other financial institution is to act as intermediaries channeling,
saving to investment. Through them, the investment requirements of savers
are reconciled with the credit need of investors and consumers
DEFINITION OF BANKING:
A banking company is defined as a company, which

transacts the business of banking in India. The Banking Regulation
Act defines the business as banking by stating the essential function
of a banker. It also states the various other businesses a banking
company may be engaged in and prohibits certain business to be
Page 38
Ratio Analysis
performed by it. The term ‘banking’ is defined as “accepting”, for the

purpose of lending or investment, of deposits of money from the
public, repayable on demand or otherwise, and withdrawal by cheque
draft, order or otherwise. RATIO ANALYSIS
STRUCTURE OF BANKING IN INDIA:
The structure of the banking industry, its performance and

efficiency which in turn, affects the banks’ ability to collect savings and
channel them into productive investments. The success of banking sector
very much depends on the ownership of banks-whether private or public or
mixed-whether the industry in competitive or regulated in terms of interest
rates, spreads between lending and deposit rates, and whether service
charges are competitively determined or regulated by government or the
central bank.
India banking system comprises of both organized & unorganized

banks. Unorganized banking includes bankers & village money-
lenders.
: CO-OPERATIVE BANK:
DEFINATION:
“A Co-operative is an autonomous of persons united

voluntarily to meet their common economic, social and cultural needs
and aspirations trough a jointly owned and democratically controlled
enter price”.
Page 39
Ratio Analysis
STUCTURE OF CO-OPERATIVE BANK:

The Co-operative banking structure on India may be divided into three
components:
1} State Co-operative Banks
2} Central C-operative Banks
3} Primary Co-operative Credit societies
1} State Co-operative Banks:

The state co-operative bank is federation of central co-
operative bank and acts as a watchdog of the co-operative banking
structure in the state. Its funds are obtained from the share capital,
deposits, loans and overdrafts from the Reserve Bank of India. The
state co-operative Bank lends money to Central co-operative Banks
and primary societies and not directly to farmer
2} Central urban Co-operative Banks:

These are the federations of primary in a district and are of
two years those having a membership of societies as well as
individuals. The funds of the bank consist of share capital, deposits
and overdrafts from state co-operative bank and joint stocks. These
bank finance member societies within the limits of the borrowing
capacity of societies, they also conduct all the business of joint stock
bank.
Page 40
Ratio Analysis
3} Primary co-operative credit societies:

The primary co-operative credit societies are an association of
borrowers and non-borrower residing in a locality in a particular
locality. The funds of the society are from the share capital and
deposits of members and loans from central co-operative banks. The
borrowingUNDERTAKEN AT
power of the members as well as of the society is fixed. The loans are
given to members for the purpose of cattle, fodder, fertilizers,
pesticides, implements etc.
BRIEF HISTORY OF URBAN CO-OPERATIVE BANKS IN

INDIA
Co-operative banks in this country are a part of vast and

powerful structure of co-operative institutions which are engaged in
tasks of production, processing, marketing, distribution, servicing and
banking in India. The beginning co-operative banking in this country
dates back to about 1904, when official efforts were made to create a
new type of institution based on principles of co-operative organization
& management, which were considered to be suitable for solving the
problems peculiar to Indian conditions.
In rural areas, as far as the agricultural and related activities are

concerned, the supply of credit was inadequate, and money lenders
would exploit the poor people in rural areas providing them loans at
higher rates.
Co operative Banks in India are registered under the Co-operative

Societies Act. The cooperative bank is also regulated by the RBI. They
are governed by the Banking Regulations Act 1949 and Banking Laws
(Co-operative Societies) Act, 1965.
Definition:
A co-operative bank is a financial entity which belongs to its

members, who are at the same time the owners and the customers of
Page 41
Ratio Analysis
their bank. Co-operative banks are often created by persons belonging

to the same local or professional community or sharing a common
interest. Co-operative banks generally provide their members with a
wide range of banking and financial services.
THE SURAT PEOPLE’S CInitiatives towards

development of co-operative banks:
1. Reorganization of PACS’s (a scheme by NABARD).

2. Licensing of new USB’s liberalized.
3. National Co-operative Bank of India (NCBI) was registered in
1993.(Multi-state co-operative society)-it has no regulatory
functions.
4. Co-operative development bank (set up by NABARD).
5. Lending and borrowing rates of all co-operative have been more
or less completely freed or deregulated.
6. Allowing all PCB’s to undertake equipment leasing and hire-
purchase financing
Establishments:
· Co-operative bank performs all the main banking functions of

deposit mobilization, supply of credit and provision of
remittance facilities.
· Co-operative Banks belong to the money market as well as to
the capital market.
· Co-operative Banks provide limited banking products and are
functionally specialists in agriculture related products. However,
co-operative banks now provide housing loans also.
· UCBs provide working capital loans and term loan as well.
Functions:
Page 42
Ratio Analysis
· Co-operative Banks are organized and managed on the principal

of co-operation, self-help, and mutual help. They work on the
basis of “no profit no loss”. Profit maximization is not their goal.
· Co-operative banks do banking business mainly in the
agriculture and rural sector. However, UCBs, SCBs, and CCBs
operate in semi-urban, urban, and metropolitan areas also.
· The State Co-operative Banks (SCBs), Central Cooperative
Banks (CCBs) and Urban Co-operative Banks (UCBs) can
normally extendO-OPERATIVE BANK LTD. housing
loans up to Rs 1 lakh to an individual. The scheduled UCBs,
however, can lend up to Rs 3 lakh for housing purposes. The
UCBs can provide advances against shares and debentures.
Cooperative banks in India finance rural areas under:
· Farming
· Cattle
· Milk
· Hatchery
· Personal finance
Cooperative banks in India finance urban areas under:
· Self-employment
· Small scale units
· Home finance
· Consumer finance
· Personal finance
Some facts about Cooperative banks in India
· Some cooperative banks in India are more forward than many of

the state and private sector banks.
· According to NAFCUB the total deposits & lending of
Cooperative Banks in India is much more than Old Private
Sector Banks & also the New Private Sector Banks.
· This exponential growth of Co operative Banks in India is
attributed mainly to their much better local reach, personal
Page 43
Ratio Analysis
interaction with customers, and their ability to catch the nerve

of the local clientele.
Related posts:
1. Indian banking system: Development banks: Export-import

bank of India (EXIM Bank)
2. Indian banking system: Development banks: National Bank of
Agriculture and Rural Development (NABARD)
3. Indian banking system: Development banks: Small scale
Industrial Development Bank of India (SIDBI)
4. Co-operative Banks in India
5. Role of development banks in the Indian economy
6. Indian Banking Sector Reforms: Licensing of New Banks in the
Private Sector
7. Committee on Indian Banking Sector Reforms: Narasimhan
Committee Report
8. Indian Financial Network (INFINET) and it’s impact on Indian
banking system
9. Article on Indian Banking Sector: “Globalization of International
Banking”
10.Indian Banking Sector Reforms in 1991
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Page 44
Ratio Analysis
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Page 45
Ratio Analysis
ATIYA MAYURI D
(GTU Enr 1.2 Company profile
THE SURAT PEOPLE ’S CO-OP. BANK LTD.
Ø INTRODUCTION:
With the advent of the 20th century, Co-operative
Movement started in India. Late Raosaheb Varundavan Jadav -
a visionary dreamt of establishing Co-operative Bank. This
Dream turned into reality in the name of The Surat Peoples
Co-operative Bank Ltd.
The Surat People’s Co-operative Bank Ltd was

established in 1922 at Surat. Bank was registered on 10th
March, 1922 and started functioning from 21st April,
1922.The Bank was first registered Urban Co-Operative Bank
in India and became Scheduled Bank on 1st September,
1988.
The Bank is serving since last 87 years to the people

of Surat. The bank is having network of 21 branches, 19 in
Surat and 1 branch at Vapi and 1 branch at Navsari.
Page 46
Ratio Analysis
he Bank is the "First Registered Urban Co-operative Bank" of

India and among the first 13 Co-operative Banks to get the "Scheduled
Bank" Status. It is the first Bank to provide the "Depository
Participant Services" in South Gujarat.
Over the years, The Surat People’s Co-operative Bank has set
its eyes on the strategic planning for the future in order to arm itself
to face competition in the wake of sea change that the banking
industry has been witnessing on account of policy of liberalization of
economy. Within the introduction of ‘On-Line’ Computer System’ at all
branches of theollment NO. 107040592096)
bank; it is now well posed to render sustained, satisfactory customer
service. It has also introduced ‘Tele-Banking Facility’. Linking of all its
branches by satellite-switchgear from Local Area Network System
(LAN) to Wide Area Network system (WAN) in due course is also
contemplated. Efforts to open Banks branches at the key centre of
Gujarat as also at Mumbai are already underway. It has introduced
performance budgeting system since the year 1993 and has been
concentrating on need based training of it
“VASUDHARA”, I.E. GODDESS OF PROPSPERITY is the

symbol of the bank. “Vasu” means Wealth & “Dhara” means flow. So
Vasudhara means safeguard the flow of wealth and to consolidate
multiply and distribute it to the people for their well-being. Blessed by
“VASUDHARA”, these young illustrious banks has crossed a number
of mile stones during its journey on the path of progress and is well
set to cross many of more of them during its perpetual march thereon.
Ø Other Services:
Safe Deposit Lockers
Depository Service
Branch Connectivity
Page 47
Ratio Analysis
ATM Service
SMS banking Services
VAT Services
Demand Draft & Pay Orders
Any Branch Banking
General Insurance
Foreign Exchange
Guide 1) Safe Deposit Lockers :
The Surat People's Co-Op. Bank Ltd. offer safe deposit lockers
for safety of your valuables. We offer safe deposit vault or locker at a
no of branches at reasonable rent depending upon the size of locker.
Kindly contact Depository Service to your nearest branch for this
facility.
2) Depository Service :
DEMAT Account Through Surat People's Bank:
· Physical Security holding are converted into Electronic holdings

so no fear about loss of paper form securities, theft, fire or
mutilation.
· No worry about bad delivery.
Comfort / Convenience
· Speedy sale-purchase & transfer.

· No botheration for storing and preservation nor loss of
securities.
· Sale-purchase, credit-debit by written mandate only.
Page 48
Ratio Analysis
· Freedom from inconvenience due to wrong signature and other

objection in stock exchange.
· Security transfer without share transfer forms.
· Freedom from botheration to inform change of address to all the
companies.
· Dematerialization facility available.
· Easy to pledge as security and to get loan.
· Direct credit of corporate benefits like Bonus, Market Shares
and Right Share in your account.
· Direct credit of Shares, Securities purchased from Market.
Nominal Service Charges
· No stamp duty expense on transfer of securities.

· Saving of postal expenses and time etc.
· Very small amount of brokerage for sale / purchase of shares
and securities
Competitive interest will be charged on loans/advances against

DEMAT shares & securities.d By:
Depository Participant Service Dept. :
SMS
Branch Name Address
Banking
'Vasudhara', Parasi Sheri, 98792

Head Ofiice
Navapara, Surat - 395003 02918
Nanpara-Athwa First Floor, Beside Bank of Baroda, 98792

Lines Branch Athwa Gate, Surat - 395001. 02918
RanderRoad Morar Mansion, Adajan Patia, Surat 98792

Branch - 395009. 02918
"Krishna Complex", Opp.

BhatarRoad 98792
L.B.Cinema, Bhatar Road, Surat -
Branch 02918
395001.
3) Branch Connectivity:
Page 49
Ratio Analysis
You may transact 24 * 7 banking from any

branch.
4) ATM Service:
It is a 24 * 7 service for your cash requirement.
· MR. SANJBranches have such facilities:
Branch Name Address
'Vasudhara',
ParasiSheri,
Main Branch
Navapara,
Surat - 395003
'Vasudhara',
PaniuniBhint,
Bhagar talav Branch SoniFalia,
Bhagartalav,
Surat - 395003
Opp.SubJail,
Khatodara Branch RingRoad,
Suart - 395002.
"KrishnaComplex",
Bhatar Road Branch
Opp.L.B.Cinema,
Page 50
Ratio Analysis
BhatarRoad,
Surat - 395001.
ShashvatApartment,
GroundFloor,
UmraJakatnaka Branch
UmraJakatnaka,
Surat - 395007.
AbhishekApartment,
KapadiaCompound,
Sumul Dairy Road
SumulDairyRoad,
Surat - 395008.
OppPoliceStation,
UdhanStationRoad,
Udhna Branch NearSBI,
Udhna,
Surat - 395003.
PlotNo.-1084,
RoadNo.-6,
Sachin Branch G.I.D.C.,
Sachin,
Surat.
AY GOSH
Assis
'VasudharaBhavan'
Timaliawad Timaliawad,
Branch Nanpura,
Surat - 395001.
5) SMS banking Services:
Our bank being always ahead in customer related services

has introduced a new service for our customers. Customers will be
able to remain in constant touch of the bank through their mobile
phones.
Salient features of the above mentioned SMS bank service are

as follows:
Page 51
Ratio Analysis
· The information of all your accounts on your single cell phone.

· 24 * 7 services.
· SMS service for Customers:
Customers can send SMS from their cell phones to

receive below mentioned responses.
Details SMS
Current balance of Accounts 1
2
Back dated balance of accounts
DDMMYY
Cheques details 3 111111
Return clearing information & cheque returned on debit

4
clearing
Other bank information 5
Help 6
tant Professor
6) VAT (View Account Terminal) Services:
You can easily have information on the screen about your

account details like balance and latest transaction. VAT are placed at
all of our branches.
View Account Terminal :
1. In idle state VAT displays details of various loans and deposits
offered by the bank.
2. On touching the screen by finger (do not use any SHARP object)
VAT will start.
7) Demand Draft & Pay Orders:
Page 52
Ratio Analysis
Demand Draft:
Demand Draft is way for remitters to transfer money

A demand draft is more secure than a normal cheque as it can only be
credited to a specific payee's account, and a customer can only be
reimbursed under indemnity if the draft is lost or stolen.
People's bank draft is a low-cost, convenient method of payments.
PayOrderService:
Pay order is secure way to make payment. Pay order can be

made of your party's name. And it is best proof of payment of this
amount and on date. so, instead of giving cheque you can make pay
order from bank and bank will make a payment from your account.
8) Branches Network:
Main Office
Page 53
Ratio Analysis
Sagrampara Branch
Salabatpura Branch
Bhagatalav Branch
MBA PROGRAMME
MahidharpuraBranch
KhatodaraBranch
Page 54
Ratio Analysis
Nanpara-AthwalinesBranch
UdhnaBranch
KatargamBranch
(Year 2010-12)
A SIP Report Submitted to Gujarat Technological

University in partial Fulfillment of the Requirements for
the Degree of Master of Business Administration [MBA]
MAHAVIR COLLEGE OF MANAGEMENT (MBA)

Sr.No.149, Near Ashirwad Villa, New City Light Road,
Page 55
Ratio Analysis
Bharthana, Vesu, Surat-395007

www.bmefcolleges.edu.in
Page 56
Ratio Analysis
Page 57
Ratio Analysis
DECLARATION
I PARVATIYA MAYURI declare that this project report entitled

RATIO ANATYSIS submitted as per Gujarat Technological
University, MBA curriculum is my original work, based on the
findings during the project.
I assure that the data, facts and figures presented by us in this

project report are true. It is not submitted in any other institute
for the award of any other degree, diploma, fellowship or other
similar title or prizes.
I will not submit this project to any other person and I also
promise not to allow or permit any other person to copy from this
project in any form. If I am found as a defaulter as above
declaration, I agree that our submission can be declared invalid
and college has the right not to permit me to appear in the final
exams.
Date:
Thank you.
PARVATIYA MAYURI D
Page 58
Ratio Analysis
ACKNOWLEDGEMEN
We believe that we have succeeded in completion of the task of our
project, but I am thankful to all those persons who have directly or
indirectly helped us during this project work.
My sincere and humble thanks to Dr. A.S.Abani, Director, Bhagwan

Mahavir College of Management.
We wish to express my profound gratitude and thanks to Mr.Sanjay

Ghosh for devoting his valuable time, his consistent encouragement
and guidance. I express a sense of gratitude to all the faculty members
of our college who have been a constant source of inspiration for my
throughout the project work.
It is very prestigious for me to undertake my summer training at THE
SURAT PEOPLE’S CO-OPERATIVE BANK Ltd. I am greatly thankful to
Mr. Devangbhai Saraiya, Manager, Mrs. Hetal Desai, Executive
Officer, Mr. Rakesh Pandiya, and also other staff members of THE
SURAT PEOPLE’S CO-OPERATIVE BANK LTD. express my sincere to
For their support and help required during the project.Their cordial
attitude and valuable guidance has paved the way for my successful
completion of the project.
Further, I am thankful to all the people who spared time for me from
their busy schedule and obliged me by giving their cooperation in the
project.Last but not the least to mention, the almighty God, without
whose blessing the project wouldn’t have been completed.
Page 59
Ratio Analysis
PARVATIYA MAYURI D
EXECUTIVE SUMMERY
The Surat People’s Co-operative Bank Ltd. Plays vital role for the society by
rendering efficient service to middle and lower class people of urban area.
The main objective of m y study is to understand the theoretical frame work
of Ratios made by a bank and final its practical implications with respect to
the organization chosen, the Surat People’s Co-operative Bank.
The section “Introduction” in this report includes values and principles of

Co-operative Banks, information about the organization and principles of
bank lending as introduction to the topic “RATIO ANALYSIS”. This project
cover details regarding Ratios which includes objectives, eligibility for Ratio,
disbursement of Ratio recovery process etc.
We have also include some practical case studies and how the bank
assisting but financing of investment in project but due to recession in
certain industry.
The assistance provided by the bank has been instrument in the emergence
of a whole new class of entrepreneurs in Gujarat. It has maintained pace
with other Co-operative banks in encouraging in Surat.
we include some introduction about the Ratio. We also analyze the Deposit
data of The Surat People’s Co-operative Bank.
Page 60
Ratio Analysis
TABLE OF CONTENTS
Title. Page
No.
Chapter 1 INTRODUCTION 1
1.1 Industry Profile 19
1.2 Company Profile 27

Chapter 2 Literature Review 50
Chapter 3 Research Methodology 57
3.1 Problem definition 57
3.2 Research Objectives 58
3.3 Research Design 58

3.4 Sampling Design 60
3.5 Data Collection Method 54
Chapter 4 Data Analysis and Interpretation 62

Chapter 5 Findings and Conclusions 69
Chapter 6 Recommendations 70
Bibliography and References 71

Appendix
Page 61
Ratio Analysis
Page 62
Ratio Analysis
CHAPTER 1
INTRODUCTION
Page 63
Ratio Analysis
CHAPTER 2
LITERATURE REVIEW
Page 64
Ratio Analysis
CHAPTER 3
RESEARCH METHODOLOGY
Page 65
Ratio Analysis
CHAPTER 4
DATA ANALYSIS AND INTERPRETATION
Page 66
Ratio Analysis
CHAPTER 5
FINDINGS AND CONCLUSIONS
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Ratio Analysis
CHAPTER 6
RECOMMENDATIONS
Page 68
Ratio Analysis
APPENDIX
............
The using software is free version, you can upgrade

it to the upgrade
version.http://www.allimagetool.com
SumulDairyRoad
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Ratio Analysis
PandesaraBranch
Rander Road Branch
BhatarRoadBranch
Umra Jakatnaka Branch
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Ratio Analysis
RingroadBranch
A.P.M.CBranch
SachinBranch
TimaliawadBranch
Page 71
Ratio Analysis
Vapi Branch
Adajan Branch
Varachha Branch
Citylight
Navsari
9) General Insurance:
Lockers
· First co-operative bank, in Gujarat to obtain a Corporate

Agency in General Insurance sector.
· Reserve Bank Of India granted and Insurance Regulatory and
Development Authority (IRDA) license holder.
· Mediclaim
· House-hold Insurance
· Fire and Burglary
· Personal Accident
· Shop Keepers
· Machinery Breakdown
· Overseas Mediclaim for Foreign Exchange.
10) Foreign Exchange:
· Received Authorized Dealer Category I - License by Reserve

Bank of India.
· Now Foreign currency and Bank transactions are carried out in
Surat People's Bank....
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Ratio Analysis
Ø Deposits
 Recurring Deposits
 Vasudhara Deposit
 Fixed Deposits
 Vasudhara Pension Plan
 Cash Certificate
1) Recurring Deposits:
The object of recurring deposits is to provide an opportunity to

build up savings through regular monthly deposits of fixed sum over a
fixed period of time. Whatever your financial goals you can aim to
achieve them with our Recurring Deposit Accounts. Set aside a small
amount every month and earn interest on the whole amount.
Pass book issued for a record of all transactions. Premature

withdrawal of accumulated amount permitted as per bank rules.
Accounts can be opened in single or joint names. Nomination facility
available.
· Monthly Installment Scheme

· Saving on monthly basis
· Attractive interest rates.
· Bigger amount on Maturity
· "Lakhpati" Scheme available
· Choices of 12 to 60 Months
2) Vasudhara Deposit(Auto renewal scheme):
Vasudhara Deposit is same as Fixed Deposit. But it is auto

renewal every month. it means your interest will be added directly to
your deposit. so, next month your deposit would be your previous
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Ratio Analysis
month deposit + your previous month interest = your current month

deposit.
3) Auto renewal scheme.
Eligibility:
· Resident Indian
· Loan Available on Fixed Deposit
· Up to 90% of the deposit
· only 1% more interest than the deposit interest rate.
4) Fixed Deposits:
Our Bank offers you simple Fixed Deposits (at very competitive
interest rate) . You can deposit money for 15 days to 10 years also. In
Fixed Deposit, you can transfer you interest in your existing account
(current, savings) quarterly.
· Maturity period ranges from 15 days to 10 years.

· Range of choice of periods as per your choice and liquidity
quarterly interest.
Eligibility:
· Resident Indian
Loan Available on Fixed Deposit :
· Up to 90% of the deposit.
5) Vasudhara Pension Plan:
Vasudhara pension plan helps you after retirement. This plan

helps you to make financial security after retirement. This is just like
deducting pension from your salary. but here you pension become
more secure than your company. and even you will get interest on
your pension.
· Minimum Amount - Rs. 500
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Ratio Analysis
· In multiples of Rs. 100/- Thereafter

· Monthly Installment Scheme
6) Cash Certificate:
Cash Certificate Plan is same as Fixed Deposit. But in Cash

Certificate you will get cumulative interest. Cash Certificate allows you
to deposit your money as long as you wish. In Cash Certificate you will
get more than double in 99 month.
· Quarterly cumulative interest.

· Certificate of total amount for maturity date.
· Wide choices of 15 month to 99 months.
· More than double in 99 months.
Eligibility:
· Resident Indian
· Loan Available on Cash Certificate
· Up to 90% of the deposit.
· only 1% more interest than the deposit interest rate.
Ø Strengths
· The Bank is the "First Registered Urban Co-operative Bank" of
India.
· All Branches Connected in CBS.
· Among the first 13 Co-operative Banks in september 1988 to get
the "Scheduled Bank" Status.
· The bank commenced "Total Branch Automation" in 1992-93.
· The Bank introduced "SMS Banking Facility" and "View Account
Terminal" {VAT} facility at all branches for better customer
service.
· Bank started its own "Training Centre" for providing training to
its employees.
· The first Bank to provide the "Depository Participant Services"
in South Gujarat.
· Only coop bank of South Gujarat to have direct connectivity to
RBI server for RTGS /NEFT facility.
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Ratio Analysis
· Only bank to have direct connectivity with RBI server to have

NECS facility.
· Only Bank to give RTGS /NEFT facility on STP basis - straight
through processing .
Ø Social Contribution
Donations made from the Charity Fund during the last many years.
Donation
Sr.
Name of the Institutions Amount
No.
Rs.
Donation
1 Shri Surat Leuva Patidaar Panch
67,900/-
Donation
2 Shri Kabir Saheb Mandir
30,000/-
Donation
3 Shri Vidhyarthi Kedavani Sangh
1,31,500/-
Donation
4 Shri Sachin Vibhag Kedavani Mandal
80,300/-
Donation
5 Shri Gorbai Mata Mandir Trust
800/-
Shri Bodamukhi Satpanthi Mandir Donation

6
Trust 6,350/-
Shri Modh Dasha Ghoghva Amdabavadi Donation

7
Vanik Panch 17,970/-
Donation
8 Shri Pandesar Kedavani Manda
4,53,200/-
Donation
9 Shri Surti Kshatriya Panch, Mandir
3,140/-
Donation
Total
8,03,810/-
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BOARD OF DIRECTORS :
Narendra M. Gandhi President

Mukeshchandra N. Gajjar Vice President
Jayavadan N.Bodawala Director
Jagdishchandra S. Mehta Director
Pravinkumar P. Modi Director
Dilipkumar M.Gajjar Director
Pravinchandra P. Jariwala Director
Jayavadan T. Jariwala Director
Ashit V. Gandhi Director
Mukesh C. Dalal Director
Sunil K. Modi Director
Sanjay N. Tamakuwala Director
Manhar N. Gandhi Director
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Ratio Analysis
MANAGEMENT EXECUTIVE :
Chandrakant S. Jariwala Chartered accountant

Natwar Kothari General manager
Hemant Shah Dy.General Manager
Harish Misty Asst. General Manager
Mayank Baxi Asst.General Manager
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Ratio Analysis
GOAL ACHIEVED :
FINANCIAL POSITION AS ON 31.03.2011
SR.N DETAIL AMT.(RS.IN

O. CRORS)
1. Authorized Share Capital Rs. 50.00
2. Paid up share capital Rs. 43.13
3. Reserve Fund Rs. 72.66
4. Other Reserve And Fund Rs. 238.19
5. Deposits:-Term Deposit Rs.
720.15
Saving Deposit Rs. 327.09 Rs. 1173.75
Current Deposit Rs.126.51
6. Advances Rs. 821.51
7. Investment Rs. 604.65
8. Working Capital Rs. 1610.52
9. Net profit Rs. 39.68
10. Gross Profit Rs. 12.94
11. ‘Cost Of Deposit’ % 6.23
12. ‘Cost Of Funds’ % 5.08
13. Gross N.P.A. Rs. 13.98
14. Net N.P.A. 0%
15. Audit Class “A”
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Ratio Analysis
16. Members 72,300

17. Staff 408
PROGRESS REPORT
RESERVE DIVIDEND
YEAR ADVANCES DEPOSIT FUND (%)
1922 29,716 51,184 - 4

1947 29,716 52,28,644 1,53,038 7.5
1972 2,77,35,841 5,02,08,397 12,09,384 9
1982 16,86,36,674 24,45,88,152 1,23,23,536 12
1997 1,19,95,66,259 2,78,70,85,041 19,05,71,544 15
2004 3,31,70,62,961 6,89,32,92,847 44,39,27,626 15
2005 3,51,84,40,276 6,22,32,72,179 49,32,44,385 15
2006 3,59,13,32,358 7,20,16,49,932 54,17,29,575 15
2007 4,59,84,37,964 7,94,33,33,742 60,32,37,466 15
2008 5,73,32,81,084 9,45,17,55,702 62,39,41,207 15
2009 5,93,95,65,323 10,06,39,04,903 65,66,98,680 15
2010 6,78,46,41,849 12,05,05,00,718 70,22,63,385 15
2011 8,21,80,20,427 11,73,75,46,894 72,66,07,681 15
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1. Regression analysis of saline soil improvement ratio

of plants
Cultivating with saline-tolerant and avoiding plants can effectively

improve saline soil. Saline soil improvement ratio was defined as the ratio of
reduced content of total saline per unit mass of soil within one year after
cultivating plants to the total saline before cultivating in this paper. In line
with the close relationship soft the saline soil improvement ratio to plant
coverage, pH value of soil and the concentrations of different saline ions, as
proved by many experiments, a regression model,
88110)8,,2,1(xbxbbxxxfy+++==LL, had been developed. The results, which
had tallied with the field test, showed that saline soil improvement ratio was
most strongly affected by plant coverage than other factors. The regression
model would be applied in selection of plant species that can improve saline
soil, evaluation of soil improvement effects, and instruction to farming
practice. The statistical test suggested that increasing green coverage could
be regarded as one of effective ways to improve saline soil in the inland.
Published: June 30, 2004
2. Initial sequencing and analysis of the human genome
The importance of sequencing the vast human genome is

illustrated in this detailed article from International Human Genome
Consortium (IHGC); a great team effort to gain maximal information of
the genetic make-up in human beings. Basically, the progress made in
this field took place in different phases, which were divided into
categories focusing research on: (i) cellular basis (chromosomes), (ii)
molecular basis (DNA double helix), (iii) genetic (cloning &
sequencing), and (iv) very first genes & entire genome. Human genome
is the largest genome sequenced so far, comprising of complexities of
genes, transposable elements, GC-content (found to be of great
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interest), CpG islands and recombination rate which is comparative

with genomes of simplest organisms. This genome project was
basically inspired from sequencing of lower organisms like bacterial
viruses, locating of disease genes of unknown function, and finally,
physical maps of yeast, worms, flies and mice. A two-stage method
was deployed for sequencing the genome: (1) Shotgun phase and (2)
Finishing phase. Briefly, the genome was divided into sized fragments,
cloned into large fragment cloning vectors, individually sequenced,
gap-filled, assembled and other complications resolved through
directed analysis before laying out a final version. In this first effort to
understand the human genome, a draft genome sequence was
released with the aid of various computational strategies, which
turned out to be quite informative in terms of the actual human
genome sequence. Eventually, a combinatorial effort from IHGC and
Celera Genomics helped this venture because it involved combining
some of the shotgun data information from the company with that of
the publicized hierarchal shotgun data. In addition to vast
collaborations, improvisations made in terms of detection of
sequences using fluorescence, dye-terminators, specifically designed
sequences, cycle sequencing and some added novel features were key
factors operating in this success story. A remarkable number (~1.4
million) of Single Nucleotide Polymorphisms (SNP’s) identified in this
project, have aided the identification of several genes, especially
related to human diseases (relevant links were provided to browse
cytogenesis aberrations and cancer) and a number of STSs, mRNAs,
ESTs, helped construct the physical maps of specific regions of
chromosomes by analyzing subsets of these sequence contigs. With
error rate of less than 1/10,000 bases, this draft sequence was
considered to be very accurate with several salient features. Also, the
junk DNA identified here was mentioned to be of great importance
because it rendered important clues about evolution of complex
human genome and resolution of several other long-standing
problems. The human genomic sequence was mostly derived from a
wide range of transposable elements and was compared to other
complementary eukaryotic genomes like that of the fruitfly. An
emphasis on GC (Guanine-Cytosine) content of the genome stretch
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where a functional relationship of high gene density to that of high GC

content or influx of transposable elements was established in context
of X and Y chromosomes existing in female and male genetic make-up
respectively. The existence of transposons as creative forces in the
genome and the origin of new genes was found to be as intriguing as
their innovative power. Also, single sequence repeats (SSRs) seemed to
play equally critical role in the human genome, especially acting as
useful tools in mapping human disease genes. Duplications,
Pericentromeric regions, Sub telomeres, and several SNP’s presented a
unique landscape for various chromosomes and were largely helpful in
predicting actual gene content of this complex genome. Apart from
identifying a wide range of RNA genes, a major application of this
project was to identify protein-coding genes and also exploring the
properties of already known genes. The properties of human genes
were compared with that of worm and fly. This, in itself, was
interpreted as a very useful information because with this effort,
research on simplest organisms again proved to be crucial in the
determination and understanding of a complicated genome like that of
human. The gene and protein datasets obtained from this report were
far from complete, but provided important clues and served as start
points for experimental and computational research. A comparative
approach of genomic and proteomic analysis led to several
evolutionary innovations especially in relation to human, yeast, fly
and worm genomes. Several groups of proteins; each one of them
containing a minimum of one orthologue of each species were
identified and their relationships were derived by sequence and
functional comparisons. In addition, quantification of architectural
differences in these organisms gave more clues to the evolution of
higher vertebrates, for e.g., the fact that gene duplications were the
major cause for evolution of new protein families and consequently
new species, and/or complex genomes with advanced functional
relevance but with somewhat common origins. These facts determined
evolutionary ages of different species and their various relationships
in terms of conservation, ancestry and assembly of sequences. For
e.g., the draft sequence reported here represented the first global
comparison for human and mouse genomes (remarkably, two identical
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genes per chromosome were identified and homology between human

chromosome 4 to mouse chromosome 5 was observed). Apart from
these basic applications, several direct applications immerged out of
this sequence data; namely, identification of human disease gene
regions, drug targets, regulatory regions, sequencing of additional
large genomes and exploration of sequence to respective function.
Although much remains to be seen, this information greatly aided
further investigative studies on the human genome.
Published: August 21, 2005
3. Use Method Fault Tree and Cost Benefit Analysis

Ratio to Determine The
PT. PERKASA MOSTINDO UTAMA is a company that produces

anti-mosquito drugs fuel. Safety problem is one of the main focus
point PT. PERKASA MOSTINDO UTAMA increasing again due to the
number of workplace accidents that occur in the production of the
first 2008. Workplace accidents that occur most frequently in the area
that is mixing, kneading, andpacking.
The objective of this research is to prevent the occurrence of

workplace accidents with the search for basic causes of the accident
fault tree analysis methods (FTA) and choose the alternative workplace
accident prevention methods based on the cost benefit ratio (CBR).
Results of the observation data shows that the frequency of accidents
that occurred in the area five times, mixing, kneading in the area
three times, and at the packing area twice.
The results of the analysis and problem-solving that has been done at
the location of each accident is based on the value of several
alternative cost benefit ratio is lowest. Alternative prevention of
accidents in the mixing area is an alternative that is 1 foot lowering
engine with the value cost benefit ratio for Rp. 1,033,326.79.
Alternative prevention of accidents in the area kneading is to provide
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Ratio Analysis
an alternative to the 3 safety glass eyes (goggles) with a value of cost

benefit ratio for Rp 5,424,965.63. Meanwhile, alternative prevention of
accidents in the packing area is to provide an alternative to the 2
gloves with a value of cost benefit ratio for Rp. 13,019,917.50.
Alternative is expected to be successful in a number
ofaccidentsthatoccur.
Published: February 11, 2009
4. Good Muscle to Fat Ratio
Good Muscle to Fat Ratio It may have been noticed that many
health related articles today contain the theme ‘Muscle – Fat’ Ratio.
Maintaining this ratio is very much essential for keeping the body fit.
Before proceeding to the tips for maintaining this ratio, let’s get a
basic idea of what this ratio is all about. Muscle to Fat Ratio is simply
means the numerical balance between the body muscle and the body
fat. This ratio is mutilated if the amount exceeds the normal limit or
the muscle amount decreases the threshold. It must be kept in mind
that, to maintain this ratio, it is very necessary to stay concerned
about the health aspects. It is also necessary to keep in mind the
harmful effects of the changes in this ratio. Increase in the amount of
fat leads to various chronic diseases like diabetes mellitus, heart
diseases, obesity, arteriosclerosis, gallstones, etc. Hence, it is very
necessary to stay in the normal muscle-fat ratio so as to stay fit,
maintain the normal BMI (Basic Metabolic Rate) & also the other
processes of the body & mind. The body fat is measured in many
ways, starting from the bioelectrical impedance, skin fold treatment,
hydrostatic weighing tanks, and infrared interactions. After the
measurement of fat, it should be calculated how much fat should be
reduced & how much muscle should be gained. There are many ways
to bring the fat amount down to the normal. First & foremost, one
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should start becoming calorie conscious & should start consuming

low calorie diet. Also, one should leave his bad food habits. Staying
calorie conscious not only means ‘how much’ you eat but also ‘what’
you eat. Products like blue cheese, processed milk products, etc. are
not suggestive for on-diet people. People can also take advice from
various diet programs & can follow the allotted diet (strictly). Products
like green leafy vegetables, fish help to gain proteins without much
increase in fats. Hence they can be used to increase the muscle
amount to the threshold limit. Daily workouts can help bring the fat
level down & also increase the muscle amount if required. Workout
does not necessarily mean gym. It can also be the simple exercises in
the morning or at a suitable time. These exercises should start with
the warming-ups & should continue with the normal workout. A
regular yoga session can definitely help bring the body in shape & also
balance the muscle fat ratio. Regular jogging or running, skipping,
aerobics can help in burning the fat. Also, sports like swimming,
football, basketball, etc. can help in gaining of muscles. It should be
kept in mind that any exercise session should be followed by a healthy
breakfast. This breakfast should contain constituents egg, milk &
fruits. Products like bread, rice should be lowered a bit. Products
containing saturated fats & oils should be very well avoided. It should
also be remembered that after every food intake, one should not
directly sit or sleep. There should be at least a 10 minute walk,
especially after every lunch or dinner. It is seen that day by day,
intake of junk food is increasing. These foodstuffs are rich in oils &
spices & hence they contribute a lot to obesity but do not cause any
change in the muscle/protein content of the body. Hence these foods,
though tempting, should be avoided as much as possible. It is noticed
that people who work in offices where mechanical work is not in
schedule have more problems of obesity. Since they have to sit and
work, their bodies are more prone to fat increase. Hence, it is
recommended that these people should be much more considered
about their fat muscle ratio. They should find time to stretch out
during their office time. They should also be more regular in their
daily workouts. It should be kept in mind that a healthy body
contributes towards a healthy mind. Thus it can definitely help in
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increasing the power of the mind. Meditation is also suggested with

regular workouts. For people who are much concentrated on muscle
increase (those who do not have much ‘fat’ problem), it is suggested t
hat the protein intake should be increased. Foodstuffs, as mentioned
above, like milk, eggs, fish, poultry can help gain ‘protein’ weight.
Also, regular gym workouts can be useful for the proper distribution of
the increasing muscle. Athletic workouts, though much tougher are
suggested for muscle development. It should be kept in mind that
along with the increase in muscles in these people, fats too are
increased, though in a very minute ratio. It is noticed that such fat
muscle ratio problems have raised in every strata & every age group of
the society. Children too have become victims of obesity – thanks to
the advancements in the world of entertainment & food. Children have
become more addicted to televisions & also to junk food. Their
concentration towards sports has lowered. Hence, it is the
responsibility of the guardians to make sure that the children are
balanced in their routines – let it be studies or play. For this, adults
should be able to make changes in themselves so that children can
themselves judge the best for them. A well planned routine can
definitely help in maintaining a proper muscle fat ratio as well as a
healthy body & mind.
Published: February 28, 2006
5. Railway network expansion and spatial accessibility

analysisinChina:906~2000
In this paper, the indexes and models are used to measure the
accessibility of transport network, such as total transport distance Di
and accessibility coefficient. On the basis of “The Shortest Route
Model”, the evolution of railway network, changes of the spatial
structure in accessibility, the relationship between railway network
distribution and spatial economic growth in past hundred years in
China are analyzed. The results show that the evolution of railway
network in China experienced 4 stages, that are initial stage,
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constructing stage, extending and optimizing stage, but the speed of

spatial expanding is relatively slow. Hundred years construction of
railway leads to “Time-Space convergence”. The spatial structure of
accessibility displays “different circles with one core”, and radiates
from Huabei Region to surroundings. The area, higher than
nationwide average level in accessibility, expands from North China to
East China and Middle China, and the center of accessibility moved
from Tianjin to Zhengzhou gradually. The construction of railway
impulses the evolvement of social economic spatial structure, the
modernization of transport corridor will impulse spatial economic
agglomeration further
Published: November 03, 2005
The procedure adopted for conducting the research requires a

lot of attention as it has direct bearing on accuracy, reliability and
adequacy of results obtained. It is due to this reason that research
methodology, which we used at the time of conducting the research,
needs to be elaborated upon. Research Methodology is a way to
systematically study and solve the research problems. If a researcher
wants to claim his study as a good study ,he must clearly state the
methodology adapted in conducting the research the research so that
it way be judged by the reader whether the methodology of work done
is sound or not.
The Research Methodology here includes.
1. Meaning of Research.
2. Research Problem.
3. Research Design.
4. Sampling Design.
5. Data Collection method.
6. Analysis and interpretation of Data.
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3.1 Meaning Research:
Research is defined as “a scientific and systematic search for

pertinent information on a specific topic”.
Research is an art of scientific investigation. Research
is a systematized effort to gain now knowledge. It is a careful
investigation or inquiry especially through search for new facts in any
branch of knowledge. Research is an academic activity and this term
should be used in a technical sense. Research comprises defining and
redefining problems, formulating hypothesis or suggested solutions.
Making deductions and reaching conclusions to determine whether
they if the formulating hypothesis. Research is thus, an original
contribution to thee existing stock of knowledge making for its
advancement. The search for knowledge through objective and
systematic method of finding solutions to a problem is research.
3.2 Research Problem:
The first step while conducting research is careful definition of

Research Problem. “To ERR IS THE HUMAN” is a proverb which
indicates that no one is perfect in this world. Every researcher has to
face many problems which conducting any research that’s why
problem statement is defined to know which type of problems a
researcher has to face while conducting any study. It is said that,
"Problem well defined is problem half solved.”
Basically, a problem statement refers to some difficulty,

which researcher experiences in the context of either a theoretical or
practical situation and wants to obtain the solution for the same.
3.3 Research Design
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Ratio Analysis
A research designs is the arrangement of conditions for

collection and analysis data in a manner that aims to combine
relevance to the research purpose with economy in procedure.
Research Design is the conceptual structure with in which research in
conducted. It constitutes the blueprint for the collection measurement
and analysis of data. Research Design includes and outline of what
the researcher will do form writing the hypothesis and it operational
implication to the final analysis of data. A research design is a
framework for the study and is used as guide in collection and
analyzing the data. It is a strategy specifying which approach will be
used for gathering and analyzing the data. It also include the time and
cost budget since most studies are done under these two cost budget
since most studies are done under theses tow constraints.
The design is such studies must be rigid and not flexible and
most focus attention on the following.
1. What is the study about?
2. Why is the study being made?
3. Where will the study be carried out?
4. What type of data is required?
5. Where can be required data be found?
6. What period of time will the study include?
7. What will be sample design?
8. What techniques of data collection will be used?
9. How will the data be analyzed?
10.In what style will the report be prepared?
TYPES OF RESEARCH DESIGN:
 EXPERIMENTAL RESEARCH DESIGN
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 EXPLORATORY RESEARCH DESIGN
 DESCRIPTIVE& DIAGNOSTIC RESEARCH
Exploratory Research Design:
This research design is preferred when researcher has a vague

idea about the problem the researcher has to explore the subject.
Experimental Research Design :
The research design is used to provide as strong basis for the

existence of casual relationship between two or more variables.
Descriptive Research Design:
It seeks to determine the answers to who, what, where, when

and how questions. It is based on some previous understanding of the
matter.
Diagnostic Research Design:
It determines the frequency with which something occurs or its

association with something else.
Research Design Used in this Project :
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Ratio Analysis
Research Design chosen for this study is Descriptive Research

Design. Descriptive study is based on some previous understanding of
the topic. Research has got a very specific objective and clear cut data
requirements.
3.4 Sampling Design:
Sampling is necessary because it is almost impossible to

examine the entire parent population (i.e. the entire universe) various
factors such as time available cost, purpose of study etc. make it
necessary for the researchers’ to choose a sample. It should neither be
too small nor too big. It should be manageable. THE sample size of
past 3 years is taken for present study due to time limitation.
3.5 DATACOLLECTIONS
The process of data collection begins after a research problem

has been defined and research design has been chalked out.
METHODS OF PRIMARY DATA
 OBSERVATION METHOD
 INTERVIEW METHODS
 QUESTIONAIRE METHOD
 SCHEDULE METHOD
PRIMARY DATA:
It is first hand data, which is collected by researcher itself.

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Ratio Analysis
Primary data is collected by various approaches so as to get a precise,

accurate, realistic and relevant data. The main tool in gathering
primary data was investigation and observation. It was achieved by a
direct approach and observation from the officials of the company.
SECONDARY DATA:
It is the data which is already collected by someone else.

Researcher has to analyze the data and interprets the results. It has
always been important for the completion of any report. It provides
reliable, suitable, adequate and specific knowledge’s took data
comprise annual reports and post records. Bank has provided me
annual reports from 2010-2011 by help of which, I prepared my
report. The valuable cooperation extended by staff members
contributed a lot to fulfill the requirements in the collection of data in
order to complete the project. Various statistical tools are applied
depending on the research problem. In this study ratio analysis,
comparative financial statements analysis, common size statements
and Trend Analysis has been used for analyzing and interpreting the
result.
1) NET WORKING CAPITAL:
= CURRENT ASSETS – CURRENT LIABILITIES
FINANCIAL 31-03-2011 31-03-2012 31-03-2013 31-03-2014

INDICATORS
PROVISIONAL PROJECTED PROJECTED PROJECTED
CURRENT 23.12 18.62 19.32 19.76

ASSETS
CURRENT 17.67 5.64 6.13 6.64

LIABILITIES
NET W.C. 5.45 12.98 13.19 13.12
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Ratio Analysis
31-03-11
31-03-12
31-03-13
31-03-14
2) CURRENT RATIO:
CURRENT ASSETS
CURRENT LIABILITIES
FINANCIA 31-0302011 31-03-2012 31-03-2013 31-03-2014

L
PROVISIONA PROJECTE PROJECTE PROJECTE
INDICATO
L D D D
R
CURRENT 23.12 18.62 19.32 19.76

ASSETS
CURRENT 17.67 13.73 14.2 10.5

LIABILITIES
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Ratio Analysis
CURRENT 1.31 1.36 1.36 1.88

RATIO
1.8
1.6
1.4
1.2
1 Series1
0.8
0.6
0.4
0.2
0
31-0302011 31-03-12 31-03-13 31-03-14
INTERPRETATION:
As a conventional rule, a current ratio of 2 to 1

or more is considered satisfactory. The people’ co-operative bank
ltd. Has a current ratio of 1.33:1 ; therefore it may be interpreted
in sufficiently liquide.
3) DEBT EQUITY RATIO:
TOTAL DEBT
Page 98
Ratio Analysis
CAPITAL
FINANCIAL 31-03-2011 31-03-2012 31-03-2013 31-03-

INDICATORS 2014
PROVISIONAL PROJECTED PROJECTED
PROJECT
ED
TOTAL DEBT 34.48 36.06 28.46 20.90
CAPITAL 14.35 20.49 27.22 34.64
DEBT EQUITY 2.40 1.76 1.05 0.60

RATIO
INTERPRETATION:
It’s acceptable more than 1 and good to be

more than two. The people’ co-operative bank ltd has a debt
equity ratio is 2.40:1; it is good for bank.
4) DEBT TO QUASI EQUITY:
DEBT EQUITY
CAPITAL + SISTER CONSTRUCT DEBT
Page 99
Ratio Analysis
FINANCIAL 31-03-2011 31-03-2012 31-03-2013 31-03-

INDICATORS 2014
PROJEC
TED
DEBT EQUITY 33.73 29.18 21.58 14.02
CAPITAL+S.C.D. 15.1 27.37 34.10 41.52
DEBT TO 2.23 1.07 0.63 0.34

QUASI EQUITY
31-03-11
31-03-12
31-03-13
31-03-14
31-03-11
INTERPRETATION:
It’s acceptable less than 3. The people’ co-operative bank

ltd has a debt to quasi equity ratio is 2.23:1. so it is good for the
bank.
Page 100
Ratio Analysis
5) CASH ACCRUAL % TO NET SALES:
CASH ACCRUAL
*100
NET SALES
FINANCIAL 31-03-2011 31-03-2012 31-03-2013 31-03-

INDICATORS 2014
PROJECT
ED
CASH 1.64 3.57 3.57 3.57

ACCRUAL
NET SALES 55.62 85.18 91.99 99.03
CASH 10.63% 11.40% 11.19% 11.10%

ACCRUAL %
TO NET
SALES
Page 101
Ratio Analysis
31-03-11
31-03-12
31-03-13
31-03-14
7) INVENTORY TURNOVER:
SALES
STOCK
FINANCIAT 31-03-2011 31-03-2012 31-03-2013 31-03-

INDICATORS 2014
PROJECT
ED
SALES - 85.18 91.99 99.03
STOCK - 1.11 1.20 1.29
Page 102
Ratio Analysis
INVENTORY - 76.73 76.65 76.76

TURNOVER
31-03-12
31-03-13
31-03-14
In Surat people’s co-operative bank ltd. Many customers are daily use
of banking service. Because of daily transaction.
Bank provided maximum services like setting facility specially when

bank employees are busy.
Bank also provided ATM Services, and also provided SMS

services and find out maximum of people are like e-payment because
of save the find out SMS service are second most preferred by
customers of bank.
Bank also provided loans to their customers like Education loan,

machinery loan, home lone loan, vehicle loan and personal loan.
Page 103
Ratio Analysis
They also provided extra information to their customers but

satisfaction is good not excellent to servey. So that should improve
their quality of service as well as friendliness.
From the findings the following suggestions are being made

to the bank. To get optimum benefit.
Bank have to increase more facilities to all account holders.
Bank have taking economics decision to attract their customers.

And account for day to day transaction.
Page 104
Ratio Analysis
BILBIOGRAPHY AND REFERENCES
· www.google.com
· www.spcbl.in
· Financial management
I.M.PANDEY
VIKAS PUBLISHING HOUSE PVT.LTD.
Page 105
Ratio Analysis
Page 106

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Ratio Analysis

MEANING OF FINANCIAL STATEMENTS:-

Financial statements refer to such statements which contains

MEANING OF FINANCIAL ANALYSIS

The first task of financial analysis is to select the information

Bhagwan Mahavir College Of Management,Surat Page 1

Features of Financial Analysis...

- To present a complex data contained in the financial

- To classify the items contained in the financial statement

-To make comparison between various groups to draw various

- Purpose of Analysis of financial statements

-To know the earning capacity or profitability.

-To know the solvency.

- To know the financial strengths.

-To know the capability of payment of interest & dividends.

-To make comparative study with other firms.

-To know the trend of business

-To know the efficiency of mgt.

Bhagwan Mahavir College Of Management,Surat.

Procedure of Financial Statement Analysis

The following procedure is adopted for the analysis and

The analyst should acquaint himself with principles and

The extent of analysis should be determined so that the

The financial data be given in statement should be recognized

A relationship is established among financial statements with

The information is interpreted in a simple and

The conclusions drawn from interpretation are presented to

Bhagwan Mahavir College Of Management,Surat.

TYPES OF FINANCIAL ANALYSIS

A) Classification on the basis of natural used

Outsiders, who don’t have access to the detailed internal

The analysis conducted by person who has access to the

B) On the basis of modus operand

Horizontal analysis refers to the comparison of financial data

This analysis refers to the study of relationship of the

Bhagwan Mahavir College Of Management,Surat.

FUNCTIONS OF FINANCE DEPARTMENT

The functions of finance department include the following areas:

1) Effective management of financial resources of the company.

2) Coordinates & Monitors the functions of accounts activities in the

3) Establish and maintain systems of financial control, internal check

5) Maintain financial accounts and compile annual periodical

6) Looks after overall funds management and arranges funds required

All the power involving financial implications are to e exercised in

Bhagwan Mahavir College Of Management,Surat.

METHODS OF FINANCIAL ANALYSIS

A number of methods can be used for the purpose of analysis

1. Comparative Financial Statements.

2. Common – size Statements

COMPARATIVE FINANCIAL STATEMENTS

When financial statements figures for two or mote years are

Such statements not only show the absolute figures of various

Bhagwan Mahavir College Of Management,Surat.

PURPOSE OR UTILITY OR IMPORTANCE OF

1. To make the Data simpler and more understandable

FORMS OF PRESENTING COMPARATIVE STATEMENTS

1. To show only the absolute data of various items or in other words to

COMPARATIVE BALANCE SHEET

The Comparative Balance Sheet as on two or more different

Bhagwan Mahavir College Of Management,Surat.

ADVANTAGES OF COMPARATIVE BALANCE SHEET

1. Helpful for comparison.

COMPARATIVE PROFIT & LOSS ACCOUNT