Financial Performan

A STUDY ON FINANCIAL PERFORMANCE OF TAMILNADU STATE
APEX CO-OPERATIVE BANK LIMITED.
A PROJECT REPORT
Submitted by
G.LOKESH KUMAR
Reg. No 11309631019
in partial fulfillment for the award of the degree
of
MASTER OF BUSINESS ADMINISTRATION
R.M.K.ENGINEERING COLLEGE
ANNA UNIVERSITY: CHENNAI 600 025
AUGEST 2010
BONAFIDE CERTIFICATE
Certified that this project report, A study on financial performance of TAMIL NADU STATE
APEX CO-OPERATIVE BANK LIMITED. The bonafide work of G.LOKESH KUMAR
who carried out the project work under my supervision.
SIGNATURE
HEAD OF DEPARTMENT
Dept of Management Studies
SIGNATURE
SUPERVISOR
Dept of Management Studies
R.M.K ENGINEERING COLLEGE

R.S.M.Nagar, Kavaraipettai-601 206
R.M.K ENGINEERING COLLEGE

R.S.M.Nagar, Kavaraipettai-601 206
Gummidipoondi Taluk, Tiruvallur Dist.
Gummidipoondi Taluk, Tiruvallur Dist.
ACKNOWLEDGEMENT
I wish to record my sense of gratitude to the chairman and The Principal of R.M.K.
Engineering College for providing me with an opportunity to undertake this project,
which has been an immense help to me.
I wish to thank Mr. RAJAGOPAL chief manager of TAMILNADU STATE APEX COOPERATIVE BANK LIMITED and Mr. SUNDAR manager of TAMILNADU STATE
APEX CO-OPERATIVE BANK LIMITED who has permit me to undergo the project work
in their respective branch.
I wish to express my deep sense of gratitude to Dr.premaSankaran MBA, Ph.D.

Professor & HOD who has assisted me in doing the project.
I express my sense of gratitude to Ms. S.D. Uma Mageshwari M.sc, M.Tech, M.B.A.
Associate. professor, Department of Management Studies under whose able guidance
this project was done.
I express my thanks to officials and staff members for readily sparing their precious time
and effort to complete this project successfully.
Special gratitude and thanks to my family members and well wishers whose moral
support and cooperation for completing the project report successfully.
ABSTRACT
Finance is the lifeblood of the nation as well as organization. The organization greatly
depends on the better utilization of finance. Finance plays a vital role in determining the
strength and weakness and control funds of the concern. Without finance no
organization can perform its activities. In modern enterprise financial manager occupies
a key position. He is responsible for shaping the future of the enterprise.
The conceptual frameworks of financial analysis have been discussed. The meanings
of financial performance, tools used for a purpose of financial analysis have been
discussed.
The study is the analysis of financial performance of TAMILNADU STATE APEX COOPERATIVE BANK LIMITED. The secondary data was taken from the balance sheets
for the last years form 2005- 2009 .
By applying the tools like ratio analysis, comparative balance sheet, common size
balance sheet, and funds flow statement the performance of the bank was analyzed and
interested facts were revealed. This would further help the organization to improve its
performance further.
CHAPTER NO
TITLE
ABSTRACT
PAGE NO
LIST OF TABLES
LIST OF CHARTS
1
INTRODUCTION
1.1 Introduction of the study
1.1.1 Need And Importance Of The Study
1.1.2 Scope of study
1.1.3 Objectives of the study
1.1.4 Research Methodology
1.1.4.1Research Design
1.1.4.2 Sources of data
1.1.4.3Tools and Techniques
1.1.5 Limitations of the study
1.1.6 chapterisation
1.2 REVIEW OF LITERATURE
1.2.1 Theoretical Review of the Concept
1.2.2 Bank Profile
ANALYSIS AND INTERPRETATION

2.1 Financial Analysis Tools
2.1.1 Ratio Analysis
11
2.1.2 Comparative Balance Sheet
21
2.1.3 Common Size Balance sheet
31
2.1.4 Funds Flow Statement
37
SUMMARY AND CONCLUSIONS

3.1 Findings Of The Study
48
3.2 Suggestions
49
3.3 Conclusions
50
BIBLIOGRAPHY
51
APPENDICES
52
Financial Statement
No
List of table
Page no
2.1.1.1
Ratio of Share Capital to Owned Fund
11
2.1.1.2
Return On Assets
13
2.1.1.3
Amount Payment of Divided to Net Profit
15
2.1.1.4
Net Profit to Working Capital
17
2.1.1.5
Owned Fund From to Working Capital
19
2.1.2.1
Comparative Balance Sheet
21
2.1.2.2
23
2.1.2.3
25
2.1.2.4
27
2.1.2.5
29
2.1.3.1
Common Size Balance Sheet
31
2.1.3.2
32
2.1.3.3
33
2.1.3.4
34
2.1.3.5
35
2.1.4.1
Funds Flow Statement
37
2.1.4.2
39
2.1.4.3
41
2.1.4.4
43
2.1.4.5
45
No
List of Charts
Page no
2.1.1.1
Ratio of Share Capital to Owned Fund
11
2.1.1.2
Return On Assets
13
2.1.1.3
Amount Payment of Divided to Net Profit
15
2.1.1.4
Net Profit to Working Capital
17
2.1.1.5
Owned Fund From to Working Capital
19
CHAPTER 1
INTRODUCTION
FINANCIAL ANALYSIS
1.1 INTRODUCTION:
Financial statements are the statements, which show the financial performance and
financial position of an organization during a particular period. Financial statements
include trading and profit and loss account and balance sheet. Trading and profit and
loss account is prepared to know the profit earned and loss sustained during a particular
period. Balance sheet is prepared to know the financial position of a concern.
Financial statement is prepared for the purpose of presenting a periodical review or

report by the management and deal with the state of investment and business and
result achieved during the period under view. They reflect a combination of recorded
facts, accounting concepts and conventions and personal judgments.
Financial analysis is the process of identifying the financial strengths and weakness of
firm by properly establishing relationships between the items of Balance sheet and
Profit and loss account. Analyzing financial statements is the process to evaluating
result between component parts of financial statement to obtain a better understanding
of firms position and performance. The main aim of financial statement analysis is to
find out the profitability and financial position of the firm. To analyze the financial
statements are classified methodically, analyzed and compared with the figures of the
previous years. With the help of the tools financial manager can rationalize his decision
and reach the goal.
1.1.1 NEED OF THE STUDY

Bank is interested in knowing their financial condition. The theoretical background about
any topic would not be useful for anyone unless it is done practically. So, the
importance of any project is to gain practical exposure and proper insight on the topic
under study. A study on the financial performance of THE TAMIL NADU STATE APEX
CO-OPERATIVE BANK LIMITED. Analysis and interpretation of financial statements
therefore refers to such a treatment of information contained in the balance sheet so as
to afford full diagnosis of the profitability and financial soundness of the business which
would help the bank to further improve its financial performance.
1.1.2 SCOPE OF THE STUDY
The study would reveal the actual financial position of the bank and its
policies which in turn will enlighten the financial strengths and weakness.
Financial statements are usually concerned with and need to be informed

about the result of operations of both the enterprise itself as well as group
as a whole.
1.1.3 OBJECTIVE OF THE STUDY

PRIMARY OBJECTIVE:
To study the financial performance of the TAMIL NADU STATE APEX

CO-OPERATIVE BANK LIMITED Chennai 600001.
SECONDARY OBJECTIVES:
To study of analyze the various ratios in relation to the solvency,

profitability and leverage position for the period of five years from 20042005 to 2008- 2009.
To find out the position of profit by comparing balance sheet for five
years.
To analyze the flow of cash and funds.
To suggest some measures to improve of the financial performance of

the bank.
1.1.4 RESEARCH METHODOLOGY

DEFINITION OF RESEARCH
Research comprises defining and redefining problems, formulating hypothesis,
collecting, organizing and evaluating data, making deductions and reaching conclusions
to determine whether they fit the formulating hypothesis.
1.1.4.1 RESEARCH DESIGN
The research is done with the secondary data already available like balance sheet. i.e
analytical research is used.
3
DEFINITION OF ANALYTICAL RESEARCH DESIGN:

Analytical research is the research where the researcher uses the facts or information
already available, and analyses these information to make a critical evaluation of the
material.
1.1.4.2 SOURCES OF THE DATA:

The data for the analysis are collected and gathered.
With the reference for printed annual report for TAMILNADU STATE APEX
CO-OPERATIVE BANK LIMITED.
There are various financial information which are collected from text book.
The main sources of information for this project work is published material
like annual reports and other data collected from the bank records.
1.1.4.3 TOOLS AND TECHNIQUES

The bank financial analysis is done with the following tools and techniques
Ratio analysis
Comparative balance sheet
Common size balance sheet
Fund flow statement
1.1.5 LIMITATION OF THE STUDY

The following are the drawbacks of the study:
Drawback due to restrictions and constraints caused by the time.
The study was carried out of the period limited to five years i.e. from 2004 - 2005
to 2008 - 2009.
The data-analysis, comparison and project study is done mainly on secondary

data.
1.1.6 CHAPTERISATION
Chapter 1. is arranged starting from the introduction of the study, need and importance
of the study, Research methodology and limitations of the study, and then it consists of
theoretical perspective of the study and profile of the bank.
Chapter 2. consists of financial analysis and interpretation. Financial tools such as

Comparative Balance Sheet , Common Size Balance Sheet, Funds Flow Statement and
Ratio Analysis is been used.
Chapter 3. consists of findings of the study, suggestion and recommendation and

conclusions are adopted.
REVIEW OF LITERATURE
1.2.1 Theoretical review of the concept

Elena Shloma; [2009] in her essay titled The financial performance of ethical funds : A
comparative analysis of the risk-adjusted performance of ethical and non-ethical mutual
funds in UK reports that financial performance remains of an important concern for the
socially responsible investors.
Susan Vonderheid (2009) Financial Performance of Nurse-Managed Primary Care
Centers: Literature Review
Academic Nurse-Managed Centers Cost Studies
Little is known about the financial performance of nursing centers and the financial
performance indicators that characterize profitable centers. In fact, the performance of
nursing centers received little attention until the mid-1990s. The following review of the
ANMC literature presents studies that reported a financial performance measure and
described their methodologies. To facilitate comparison with this study's findings, costs
reported in previous studies were converted to 2000 dollars using the consumer's price
index for physician services (U.S. Department of Labor, 2001).
Saywell, Lassiter, and Flynn (1995) investigated an ANMC staffed by voluntary
physicians and nurse practitioners, as well as salaried nurse practitioners. The cost
analysis included direct (actual cash expenditures) and donated operating costs. The
average total operating cost per visit was $65 ($82 in 2000 dollars). The ANMC total
costs were higher than physician costs at $38 ($48 in 2000 dollars) per visit based on
office visit charges.
Hunter, Ventura, and Kearns (1999) conducted cost analyses using two different
methods based on client and aggregate (center) level data, and included actual cash
expenditures and donated goods and services. The average cost per visit was $63 ($85
in 2000 dollars) based on the client method and $101 ($136 in 2000 dollars) based on
the aggregate method. Comparison groups (county-operated facilities) had similar costs
per visit ranging from $62 ($84 in 2000 dollars) to $92 ($124 in 2000 dollars) per visit.
Cost per patient was $240 based on the aggregate method; no comparison groups were
reported.
One study compared two ANMCs using gross cost accounting and activity-based
costing (Vincent, Mackey, Pohl, Hirth, & Oakley, 1999). Direct, indirect, and donated
goods and services costs were included. Revenue per visit was $60 ($64 in 2000
dollars) at the self-sustainable and profitable center, and $27 ($29 in 2000 dollars) at
the center with grants and subsidies. Gross costing analysis estimated a total cost per
visit of $45 ($48 in 2000 dollars) and $41 ($44 in 2000 dollars) at the self-sustainable
and the subsidized centers, respectively.
Performance measures reported in this literature are insufficient to establish
benchmarks for ANMCs. Studies reported few performance measures used different
methodologies for calculating costs and only one study compared ANMCs. Multi-site
studies are needed that compare multiple standardized performance measures and
include all types of costs.
Presented here are findings from a study that examined services, funding, and cost
structures of six ANMCs and compared their relative efficiency based on more than 40
performance measures. Findings reported in this article include funding sources and
financial performance measures based on encounters and patients. Components of the
performance measures are defined so that future studies can replicate the methodology
as ANMCs work towards establishing necessary benchmarks.
8
1.2.2 BANK PROFILE
THE TAMIL NADU STATE APEX CO-OPERATVE BANK LIMITED was

registered on 23rd November 1905 and started functioning on 26th November
1905.
The bank has completed 104 years and entered into 105th year of useful service
to the farmers.
The various cooperative institutions like the District Central Cooperative Banks,
Primary Agricultural Cooperative Banks & Primary Weavers Cooperative
Societies and Apex Cooperative Institutions.
The Authorized share Capital of the Bank is Rs.125.00 Crores. The Share
Capital of the Bank as on 31.03.2010 is Rs.61.07 Crores.
Financial assistance is provided to the DCCBs every year to purchase

equipments like Computers, Fax machines, to modernize.
The Bank is catering to the needs of the public in Chennai through its network of
44 Branches and 1Extension counter situated in and around the city.
The National Federation of State Cooperative Banks limited (NAFSCOB) has

instituted a scheme of best performance awards to Apex bank.
BANKS PRODUCT
Deposits from public- Bank accept fixed deposit and requiring deposits.
Jewel loan to customers- Bank provide loan to customer for jewel kept in
bank and get money.
Agricultural loan- The DCCBs bank is distribute the agricultural loan to

farmers.
Loan to Consumers Cooperative- In wholesales stores are providing loan

for develop their business.
Loan to cooperative printing press- To provide loan to develop the

process.
Loans to Urban Cooperative Bank- TNSC bank limited provide loans to

Urban Co-operative Bank for develop the bank process.
10
CHAPTER 2
ANALYSIS AND INTERPRETATION
2.1 FINANCIAL ANALYSIS TOOLS

2.1.1 RATIO ANALYSIS
2.1.1.1 RATIO OF SHARE CAPITAL TO OWNED FUND
SHARE CAPITAL *100 / OWNED FUNDS
YEAR
SHARE CAPITAL
OWNED FUND
2004-2005
40,94,70,000.00
439,15,78,942.00
9.300
2005-2006
53,47,60,000.00
563,97,40,252.00
9.280
2006-2007
56,60,20,000.00
617,47,32,751.00
9.160
2007-2008
61,07,10,000.00
687,83,28,714.00
8.878
2008-2009
61,07,10,000.00
693,60,81,799.00
8.804
7E+09
6E+09
5E+09
share capital
4E+09
owned fund
3E+09
2E+09
1E+09
0
2004-2005 2005-2006 2006-2007 2007-2008 2008-2009
11
INTERPRETATION
The data shows a gradual increase in share capital and owned funds. It is
also observed that percentage increase in owned fund is more than that of
share capital over five years.
In the year 2007-2008 and 2008-2009, there is no change in share capital
value.
12
2.1.1.2 RETURN ON ASSETS
NET PROFIT *100 / TOTAL ASSETS

YEAR
NET PROFIT
TOTAL ASSETS
2004-2005
25,37,71,690.00
4793,45,67,563.77
0.529
2005-2006
28,01,59,366.31
5075,25,86,823.29
0.550
2006-2007
21,78,09,498.03
5249,34,46,430.29
0.414
2007-2008
15,11,76,286.30
5890,29,83,797.79
0.256
2008-2009
33,73,97,767.23
6967,83,59,647.33
0.484
7E+10
6E+10
5E+10
4E+10
Net profit
Total assets
3E+10
%
2E+10
1E+10
0
2004-2005
2005-2006
2006-2007
2007-2008
13
2008-2009
INTERPRETATION
The data shows a gradual increase in the both net profit around 8 cr. Whereas
increase in total assets is by 2000 cr. The ratio of net profit to total assets does
not follow any trend and is varying.
It can be seen that in the year 2007-2008 net profit decreased drastically. This
may be attributed to the new tax policy implemented by Government. So bank
net profit are reduced and in the following year i.e. 2008-2009 the net profit
position change.
14
2.1.1.3 AMOUNT PAYMENT OF DIVIDENT TO NET PROFIT
DIVIDEND * 100 / NET PROFIT

YEAR
DIVIDEND
NET PROFIT
2004-2005
6,55,15,200.00
25,37,71,690.00
25.810
2005-2006
5,88,23,600.00
28,01,59,366.31
20.990
2006-2007
4,52,81,600.00
21,78,09,498.03
20.780
2007-2008
5,49,63,900.00
15,11,76,286.30
36.350
2008-2009
8,54,99,400.00
33,73,97,763.23
25.340
350000000
300000000
250000000
dividend
200000000
Net profit
150000000
100000000
50000000
0
2004-2005
2005-2006
2006-2007
2007-2008
15
2008-2009
INTERPRETATION
In this data shows the amount payment of dividend position is not constant.
Because the payment of dividend rate is vary from one year to another year but
bank fixed the rate is based on performance.
The percentage is high standard of year 2007-2008 for reason is net profit earn
low margin. But the bank provide 9 % dividend rate to share holders so, the
dividend percentage is more.
16
2.1.1.4
NET PROFIT TO WORKING CAPITAL
NET PROFIT * 100 / WORKING CAPITAL

YEAR
NET PROFIT
2004-2005
WORKING
%
CAPITAL
25,37,71,690.00
4788,74,67,760.00
0.529
2005-2006
28,61,59,366.31
5068,42,68,960.00
0.550
2006-2007
21,78,09,498.03
5244,98,08,820.00
0.415
2007-2008
15,11,76,286.30
5886,94,18,300.00
0.256
2008-2009
33,73,97,767.23
6964,55,48,870.00
0.484
7E+10
6E+10
5E+10
Net profit
4E+10
Working capital
3E+10
2E+10
1E+10
0
2004-2005
2005-2006
2006-2007
2007-2008
17
2008-2009
INTERPRETATION
The analysis shows a gradual increase in both net profit and working
capital. It is also observed that percentage increase in working capital is
more than that of net profit over five year.
18
2.1.1.5
OWNED FUND FROM WORKING CAPITAL
OWNED FUND *100 / WORKING CAPITAL
YEAR
OWNED FUND
2004-2005
WORKING
%
CAPITAL
439,13,78,942.00
4788,74,67,760.00
2005-2006
563,97,40,252.00
5068,42,68,960.00
11.130
2006-2007
617,47,32,759.00
5244,98,08,820.00
11.770
2007-2008
687,83,28,714.00
5886,94,18,300.00
11.680
2008-2009
693,60,81,799.00
6964,55,48,870.00
9.950
7E+10
6E+10
5E+10
Owned fund
4E+10
Working capital
3E+10
2E+10
1E+10
0
2004-2005
2005-2006
2006-2007
2007-2008
19
2008-2009
9.170
INTERPRETATION
The data shows the working capital increasing position. In the same time
the owned fund also increase gradually. But the year 2008-2009
percentage are reduced for the bank because of the increase in reserve
fund but the working capital is not increase that much of owned fund.
20
2.1.2.1 Comparative balance sheet as on 31st march

Particulars
2008
2009
Different
Liabilities
1. Share capital
443,75,10,000.00
635,09,10,000.00
191,34,00,000.00
30.12
2. Reserve
626,76,18,714.44
632,53,71,799.62
5,77,53,085.00
0.91
3. Surplus
15,11,76,286.30
33,73,97,767.23
18,62,21,480.90
55.19
608,40,24,496.00
830,58,55,003.00
222,18,30,507.00
26.75
-------------------
39,16,700.07
39,16,700.07
100.00
3993,71,49,661.16
4429,15,81,597.70
435,44,31,930.00
9.83
92,61,17,795.39
95,99,80,653.45
3,38,62,858.10
3.52
109,93,86,794.45
310,33,46,126.26
200,39,59,332.00
64.57
5890,29,83,747.74
6967,83,59,647.33
1. Fixed assets
736,04,179.90
703,47,547.49
(32,56,632.41)
(4.62)
2. Other assets
21,14,76,252.63
27,05,98,583.44
5,91,22,330.80
21.84
3. Advance
3336,26,10,831.25
3296,00,83,425.03
(40,25,27,410.00)
(12.21)
4. Investment
1458,51,13,237.00
645,56,74,636.00
188,05,61,400.00
11.42
5. Liquid assets
367,01,79,246.96
296,16,55,455.03
(70,85,23,791.00)
(23.92)
6. Money call
700,00,00,000.00
1695,00,00,000.00
95,00,00,000.00
58.70
5890,29,83,747.74
6967,83,59,647.33
4. Borrowings
5. Branch
adjustment
6. Deposits
7. Liquid
Liabilities
8. Other liabilities
Total liabilities
Assets
Total assets
21
INFERENCES:
The profitability of the bank appears to be impressive, as judged by increase in

reserves and surplus by 55.19%, it results in increase in earnings per share and
dividend per share.
Fixed assets are reduced by 4.62%, so it is unfavorable, as long-term funds are
not used for acquiring of fixed assets. Whereas increase in long-term funds
shows that solvency of the bank is satisfactory.
Advances are reduced by 12.21%, so the bank earns the interest to be reduced
for the previous year. The bank will provide loan to public for earn interest.
Deposits are increase 9.83% but it is not sufficient for the banking sector. If the
deposits increase bank provide more loans and get interest huge.
22
2.1.2.2 Comparative balance sheet as on 31ST march

Particulars
2007
2008
Different
Liabilities
1. Share capital
247,94,20,000.00
443,75,10,000.00
195,80,90,000.00
44.12
2. Reserve
560,87,12,759.33
626,76,18,714.44
65,89,05,955.11
10.51
3. surplus
21,78,09,498.03
15,11,76,286.30
(6,66,33,211.70)
(44.07)
878,22,74,925.00
608,40,24,496.00
(269,82,50,429.00)
(44.34)
43,37,167.85
-------------------
(43,37,167.85)
( --)
3263,50,40,050.00
3993,71,49,661.16
730,21,09,610.00
18.28
72,20,45,583.10
92,61,17,795.39
3,79,35,070.30
24.78
204,38,06,437.70
109,93,86,794.45
(94,44,18,724.00)
(85.90)
5249,34,46,430.29
5890,29,83,747.74
7. Fixed assets
7,08,80,439.14
736,04,179.90
27,23,74,076.00
3.70
8. Other assets
43,21,50,298.60
21,14,76,252.63
(22,06,74,046.60)
(104.34)
242,95,93,933.52
3336,26,10,831.25
93,30,16,900.00
2.79
1083,73,78,158.00
1458,51,13,237.00
374,77,35,080.00
25.69
11. Liquid assets
316,34,43,601.00
367,01,79,246.96
50,67,35,645.90
13.80
12. Money call
556,00,00,000.00
700,00,00,000.00
144,00,00,000.00
20.57
5249,34,46,430.29
5890,29,83,747.74
4. Borrowings
5. Branch
adjustment
6. Deposits
7. Liabilities
Total liabilities
Assets
9. Advance
10. Investment
Total assets
23
INFERENCES:
The profitability of the bank is low to compare of pervious year. The reserve and
surplus is (44.07%), so dividend decreases for the share holders.
Fixed assets is increase 3.70%, so the assets is increase normally its favor for
the institution
Advance are increase 2.79%, so the bank provide loans to customers and earn
interest more compare to previous year
Deposits are increases to 18.28% so the bank has more funds to invest are
increasing their actives. But the bank has to pay the interest for depositor.
24

Particulars
2006
2007
Different
Liabilities
1. Share capital
3,47,60,000.00
247,94,20,000.00
194,46,60,000.00
78.43
2. Reserve
510,49,00,252.00
560,87,12,759.33
50,37,32,507.10
9.72
3. Surplus
28,01,59,366.31
21,78,09,498.03
(6,23,49,868.3)
(28.62)
1026,75,97,090.66
878,22,74,925.00
(328,53,22,165.00)
(37.40)
21,73,265.00
43,37,167.85
21,63,902.85
49.89
3126,78,27,388.61
3263,50,40,050.00
134,72,12,670.00
4.12
7. Liabilities
68,36,27,205.50
72,20,45,583.10
4,27,55,545.46
5.92
81,14,62,251.00
204,38,06,437.70
123,23,44,186.00
60.29
5075,25,86,823.29
5249,34,46,430.29
1. Fixed assets
7,31,95,585.82
7,08,80,439.14
(28,15,146.68)
(3.26)
2. Other assets
13,16,82,887.70
43,21,50,298.60
30,04,67,411.10
69.52
3. Advance
3040,70,58,390.00
3242,95,93,933.52
202,25,35,543.52
6.23
4. Investment
1105,36,40,414.00
1083,73,78,158.00
(216,26,62,260.00)
(1.995)
5. Liquid assets
297,70,09,538.00
316,34,43,601.00
18,64,34,063.00
5.89
6. Money call
611,00,00,000.00
556,00,00,000.00
(55,00,00,000.00)
(9.892)
5075,25,86,823.29
5249,34,46,430.29
4. Borrowings
5. Branch
adjustment
6. Deposits
Total liabilities
Assets
Total assets
25
INFERENCES:
The profitability of the bank is low to compare of pervious year. The reserve and
surplus is (28.62%), so dividend decreases for the share holders.
Advance is increase 6.23%, so the banks provides loans to customers and earn
interest more compare to previous year.
Deposits are increases to 4.12% so the banks have funds to invest are
increasing their actives. but the bank have to pay the interest for depositor
26

Particulars
2005
2006
Different
Liabilities
1. Share capital
40,94,70,000.00
53,47,60,000.00
12,52,90,000.00
23.42
2. Reserve
439,13,78,942.56
510,49,00,252.00
71,36,01,310.00
13.97
3. Surplus
25,37,71,690.20
28,01,59,366.31
2,63,87,676.10
9.41
4. Borrowings
1082,17,69,938.98
1026,75,97,090.66
124,58,27,160.00
10.32
5. Branch
adjustment
-----------------------
21,73,265.00
21,73,265.00
100.00
6. Deposits
3062,57,86,622.88
3126,78,27,388.61
64,20,40,760.00
2.053
7. Liabilities
86,32,93,583.20
68,36,27,205.50
(17,96,66,377.70)
(26.28)
56,90,96,785.90
81,14,62,251.00
24,23,65,465.10
29.86
4793,45,67,563.77
5075,25,86,823.29
1. Fixed assets
7,18,40,253.79
7,31,95,585.82
13,55,332.03
1.85
2. Other assets
12,24,25,523.10
13,16,82,887.70
92,57,364.60
7.03
3. Advance
2823,30,14,280.00
3040,70,58,390.00
217,40,44,110.00
7.14
4. Investment
1209,09,53,372.00
1105,36,40,414.00
(103,73,12,960.00)
(9.38)
5. Liquid assets
323,46,32,196.00
297,70,09,538.00
(25,76,22,658.00)
(8.63)
6. Money call
417,00,00,000.00
611,00,00,000.00
194,00,00,000.00
31.75
7. Branch
adjustment
Total assets
1,17,01,938.89
-------------------
1,17,01,938.89
(--)
4793,45,67,563.77
5075,25,86,823.29
Total liabilities
Assets
27
INFERENCE:

dividend per share.
Advances are increase 7.14%, so the bank provides loans to customers and earn
interest more compare to previous year.
Deposits are increases to 2.053% so the banks have funds to invest are
increasing their actives. But the bank has to pay the interest for depositor.
28

Particulars
2004
2005
Different
Liabilities
1. Share capital
37,81,60,000.00
40,94,70,000.00
31,31,000.00
7.64
2. Reserve
364,31,65,402.00
439,13,78,942.56
74,82,13,090.00
17.03
3. Surplus
19,41,38,562.63
25,37,71,690.20
5,96,33,127.60
23.49
818,03,08,749.00
1082,17,69,938.98
264,14,61,181.00
24.40
4. Borrowings
5. Branch
adjustment
6. Deposits
3,93,67,190.47
-----------------------
(3,93,67,190.47)
(--)
3119,87,19,120.00
3062,57,86,622.88
(57,29,32,500.00)
(1.87)
7. Liabilities
103,17,17,335.00
86,32,93,583.20
(16,84,23,751.80)
(19.50)
39,81,54,558.10
56,90,96,785.90
17,09,42,227.80
30.03
4506,37,30,924.73
4793,45,67,563.77
1. Fixed assets
12,00,07,909.89
7,18,40,253.79
(4,81,67,656.01)
(67.04)
2. Other assets
11,91,05,988.70
12,24,25,523.10
61,13,73,217.50
83.69
3. Advance
2427,49,43,290.00
2823,30,14,280.00
395,80,70,990.00
14.01
4. Investment
1356,00,19,825.00
1209,09,53,372.00
(146,90,66,450.00)
(12.15)
5. Liquid assets
243,96,53,910.00
323,46,32,196.00
79,49,78,286.00
24.57
6. Money call
455,00,00,000.00
417,00,00,000.00
(38,00,00,000.00)
(9.112)
7. Branch
adjustment
Total assets
---------------------
1,17,01,938.89
1,17,01,938.89
100.00
4506,37,30,924.73
4793,45,67,563.77
Total liabilities
Assets
29
INFERENCE:

dividend per share.
Advances are increase 14.01%, so the bank provides loans to customers and
earn interest more compare to previous year.
Deposits are reduced to 1.87% so the banks are reduced to invest are their
actives. But the bank has to pay the interest for depositor.
30
2.1.3.1 Common size balance sheet as on 31st march 2009

Particulars
2009
% of assets and liabilities
Liabilities
1. Share capital
635,09,10,000.00
9.12
2. Reserve
632,53,71,799.62
9.10
3. Surplus
33,73,97,767.23
0.50
830,58,55,003.00
11.92
39,16,700.07
0.005
4429,15,81,597.70
63.56
95,99,80,653.45
1.38
310,33,46,126.26
4.454
6967,83,59,647.33
100.00
1. Fixed assets
703,47,547.49
0.10
2. Other assets
27,05,98,583.44
0.39
3. Advance
3296,00,83,425.03
47.30
4. Investment
1645,56,74,636.00
23.63
296,16,55,455.03
4.25
1695,00,00,000.00
24.33
6967,83,59,647.33
100.00
4. Borrowings
5. Branch adjustment
6. Deposits
7. Liabilities
Total liabilities
Assets
5. Liquid assets
6. Money call
Total assets
31

Particulars
2008
Liabilities
1. Share capital
443,75,10,000.00
7.53
2. Reserve
626,76,18,714.44
10.64
3. Surplus
15,11,76,286.30
0.25
608,40,24,496.00
10.32
-------------------
---
3993,71,49,661.16
67.80
92,61,17,795.39
1.57
109,93,86,794.45
1.87
5890,29,83,747.74
100.00
1. Fixed assets
736,04,179.90
0.12
2. Other assets
21,14,76,252.63
0.36
3. Advance
3336,26,10,831.25
56.64
4. Investment
1458,51,13,237.00
24.76
5. Liquid assets
367,01,79,246.96
6.231
6. Money call
700,00,00,000.00
11.88
5890,29,83,747.74
100.00
4. Borrowings
6. Deposits
7. Liabilities
Total liabilities
Assets
Total assets
32

Particulars
2007 amount
Liabilities
1. Share capital
247,94,20,000.00
4.72
2. Reserve
560,87,12,759.33
10.69
3. Surplus
21,78,09,498.03
0.41
878,22,74,925.00
16.73
43,37,167.85
0.08
3263,50,40,050.00
62.16
72,20,45,583.10
1.37
204,38,06,437.70
3.91
5249,34,46,430.29
100.00
1. Fixed assets
7,08,80,439.14
0.14
2. Other assets
43,21,50,298.60
0.82
3. Advance
3242,95,93,933.52
61.78
4. Investment
1083,73,78,158.00
20.64
5. Liquid assets
316,34,43,601.00
6.03
6. Money call
556,00,00,000.00
10.6
5249,34,46,430.29
100.00
4. Borrowings
6. Deposits
7. Liabilities
Total liabilities
Assets
Total assets
33

Particulars
2006
Liabilities
1. Share capital
53,47,60,000.00
1.05
2. Reserve
510,49,00,252.00
10.06
3. Surplus
28,01,59,366.31
0.60
1026,75,97,090.66
23.78
21,73,265.00
0.004
3126,78,27,388.61
61.61
7. Liabilities
68,36,27,205.50
1.35
81,14,62,251.00
1.60
5075,25,86,823.29
100.00
1. Fixed assets
7,31,95,585.82
0.144
2. Other assets
13,16,82,887.70
0.26
3. Advance
3040,70,58,390.00
59.91
4. Investment
1105,36,40,414.00
21.78
5. Liquid assets
297,70,09,538.00
5.87
6. Money call
611,00,00,000.00
12.04
5075,25,86,823.29
100.00
4. Borrowings
6. Deposits
Total liabilities
Assets
Total assets
34

Particulars
2005
Liabilities
1. Share capital
40,94,70,000.00
0.85
2. Reserve
439,13,78,942.56
9.16
3. Surplus
25,37,71,690.20
0.53
4. Borrowings
1082,17,69,938.98
22.58
-----------------------
---
6. Deposits
3062,57,86,622.88
63.40
7. Liabilities
86,32,93,583.20
1.80
56,90,96,785.90
1.29
4793,45,67,563.77
100.00
1. Fixed assets
7,18,40,253.79
0.15
2. Other assets
12,24,25,523.10
0.03
3. Advance
2823,30,14,280.00
58.90
4. Investment
1209,09,53,372.00
25.22
5. Liquid assets
323,46,32,196.00
6.75
6. Money call
417,00,00,000.00
8.70
1,17,01,938.89
0.02
4793,45,67,563.77
100.00
Total liabilities
Assets
Total assets
35
Common size balance sheet of share capital, deposit, borrowings trend

for year 2005-2009
100
80
60
40
20
0
deposits
borrowing
share capital
Common size balance sheet of investment, advance, fixed assets for

the year 2005-2009
100
80
60
40
20
0
investment
advance
fixed assets
Interpretation:
The above trend charts show the following facts:
a) The share capital has shown an increasing trend.
b) The position of borrowings have not shown any change and remains
approximately same.
c) Deposits have increased in the year 2007-08 but in the subsequent year it has
decreased.
d) The investments remained constant over the period between 2005-1007 but in
2008-09 shown a slight decrease. A similar trend is shown for advances also.
e) Fixed assets remains constant from 2004-05 to 2008-09.
36
FUNDS FLOW STATEMENTS
2.1.4.1 Statement showing in working capital increasing (or) decreasing

Particular
2008
2009
Increase
Decrease
Liquid assets
5890,29,83,747.74
6967,83,59,647.33
1077,53,75,899.59
-------------------
Total assets
5890,29,83,747.74
6967,83,59,647.33
Bills for
collection
3,35,65,437.08
3,28,10,769.33
7,54,667.75
----------------------
Total liabilities
3,35,65,437.08
3,28,10,769.33
Total assets
Total liabilities
5886,94,18,310.62
6964,55,48,878.00
Increasing
working capital
1077,61,30,567.34
----------------------
----------------------
1077,61,30,567.34
6964,55,48,878.00
6964,55,48,878.00
1077,61,30,567.34 1077,61,30,567.34
Assets
Liabilities
37
Calculation of from operation

Particular
Rs
To reserve
Particular
Rs
5,77,53,085.18 By balance
To balance
15,11,76,286.30
33,73,97,767.23
By fund flow operation
24,39,74,566.11
39,51,50,852.41
39,51,50,852.41
Funds flow statement

Sources
Funds flow operation
Rs.
Application
Issue of share
24,39,74,566.11 Increase working

capital
191,34,00,000.00
Deposits
464,19,31,936.54
Interest
1077,61,30,567.34
3,46,17,525.80
Borrowing
193,43,30,507.00
Other liabilities
200,39,59,331.81
Branch adjustment
Rs.
39,16,700.07
1077,61,30,567.34
38
1077,61,30,567.34

Particular
2007
2008
Increase
Decrease
Assets
Liquid assets
5249,34,46430.29
5890,29,83,747.74 640,95,37,317.45
Total assets
5249,34,46430.29
5890,29,83,747.74
Bills for
collection
4,36,37,615.01
3,35,65,437.08
Total liabilities
4,36,37,615.01
3,35,65,437.08
Total assets
Total liabilities
5244,98,08,815.28
5886,94,18,310.62
Increasing
working capital
641,96,09,495.34
--------------
-------------------
Liabilities
5886,94,18,310.62
1,00,72,177.93
----------------------
--------------
641,96,09,495.34
5886,94,18,310.62 641,96,09,495.34
641,96,09,495.34
39
Calculation of funds from operation

Particular
Rs
Particular
To reserve
65,89,05,955.11 By balance
To balance
15,11,76,286.30

81,00,82,241.41
Rs
21,78,09,498.03
59,22,72,743.37
81,00,82,241.41

Sources
Rs.
Application
59,22,78,743.37 Increase working capital
Issue of share
195,80,90,000.00 Borrowing
Deposits
738,47,09,610.00 Other liabilities
Interest
21,41,44,390.20 Branch adjustment
1014,92,16,744.57
40
Rs.
641,96,09,495.38
278,08,50,429.00
94,44,19,643.40
43,37,167.85
1014,92,16,744.57

Particular
2006
2007
Increase
Decrease
Assets
Liquid assets
5075,25,86,823.29
5249,34,46430.29
174,08,59,610.00
-------------------
Total assets
5075,25,86,823.29
5249,34,46430.29
Bills for
collection
6,83,17,863.31
4,36,37,615.01
Total liabilities
6,83,17,863.31
4,36,37,615.01
Total assets
Total liabilities
5068,42,68,959.98
5244,98,08,815.28
Increasing
working capital
176,55,39,858.30
--------------
--------------
176,55,39,858.30
5244,98,08,815.28
5244,98,08,815.28
176,55,39,858.30
176,55,39,858.30
Liabilities
41
2,46,80,248.30 ----------------------
Particular
Rs
Particular
To reserve
50,37,32,557.10 By balance
To balance
21,78,09,498.03

72,15,42,055.13
Rs
28,01,59,366.31
44,13,82,688.80
72,15,42,055.13

Sources
Rs.
Application
Issue of share
194,46,60,000.00 Borrowing
Deposits
136,72,12,670.00
Interest
Other liabilities
Branch adjustment
Rs.
176,55,39,858.30
328,53,22,165.00
6,30,98,625.90
123,23,44,186.00
21,62,902.85
505,08,61,074.30
42
505,08,61,074.30

Particular
2005
2006
Increase
Current assets
4793,45,67,563.77
5075,25,86,823.29
Total assets
4793,45,67,563.77
5075,25,86,823.29
Decrease
Assets
281,80,19,260.00
-------------------
2,12,18,094.16
Liabilities
Bills for
collection
4,70,99,769.15
6,83,17,863.31 ----------------------
Total liabilities
4,70,99,769.15
6,83,17,863.31
Total assets
Total liabilities
4788,74,67,790.00
5068,42,68,959.98
Increasing
working capital
279,68,01,166.00
5068,42,68,959.98
5068,42,68,959.98
43
--------------
279,68,01,166.00
176,55,39,858.30
176,55,39,858.30

Particular
Rs
Particular
To reserve
71,36,01,310.70 By balance
To balance
28,01,59,366.31

99,37,60,676.30
Rs
25,37,71,690.20
73,99,88,986.10
99,37,60,676.30

Sources
Rs.
Application
Issue of share
12,52,90,000.00 Interest
Deposits
64,20,40,760.00
Other liabilities
24,23,65,465.10
Branch adjustment
Borrowing
Rs.
279,68,01,166.00
20,08,84,449.80
21,73,265.00
124,58,27,160.00
299,76,85,616.80
44
299,76,85,616.80

Particular
2004
2005
Increase
Current assets
4506,37,30,924.73
4793,45,67,563.77
Total assets
4506,37,30,924.73
4793,45,67,563.77
Decrease
Assets
287,08,36,639.04
-------------------
3,20,52,052.87
Liabilities
Bills for
collection
1,50,47,743.28
4,70,99,769.15 ----------------------
Total liabilities
1,50,47,743.28
4,70,99,769.15
Total assets
Total liabilities
4504,86,83,181.45
4788,74,67,790.00
Increasing
working capital
283,87,84,586.17
4788,74,67,767.62
---------------------- ----------------------
283,87,84,586.17
4788,74,67,767.62
287,08,36,639.04
45
287,08,36,639.04

Particular
Rs
Particular
To reserve
74,82,13,090.00 By balance
To balance
25,37,71,690.20

100,99,84,780.20
Rs
19,41,38,562.03
80,78,46,217.57
100,99,84,780.20

Sources
Issue of share
Other liabilities
Borrowing
Rs.
Application
Rs.
283,87,84,586.17
3,13,10,000.00 Interest
20,04,75,805.00
17,09,42,227.80 Deposits
57,29,32,500.00
264,14,61,181.00 Branch adjustment
365,15,60,081.37
46
3,93,67,190.47
365,15,60,081.37
Interpretation of funds flow statement:
The above the table shows the funds flow,

1. The sudden operation in organization its meets requirement to maintain the
working capital. In the statement are shows the year 2004-07 working capital is
reduce but the year 2007-08 the working capital is increase for more current
asset. In the organization working capital must maintain certain limit if excess
amount of working capital is not help the organization for earn any income.
2. The bank funds from operation is to be decreasing the year 2005-2007. But the
year 2008 the funds from operation is to be increase for the reason is reserve
funds affected more in the year. So the year shows the result is changed but the
next year 2009 is totally changed for the same reason reserved funds is not
contribute.
3. In the year 2004-05 to 2005-06 the issue of share is increase gradually. In the
year 2006-07 it change the normal increase issue of share. It increase
extraordinary for the raise the fund for the develop the organization, it
continuously the next year also but the changes happen in the 2008-09 for
reduce the issue of share for need is not raise.
47
CHAPTER 3
FINDING AND CONCLUSIONS
3.1 Finding of the study

The study of financial performance of the TAMIL NADU STATE APEX COOPERATIVE BANK LIMITED is been examined in order to understand the financial
healthiness of the concern. The present study is summarized in a detailed way, which
helps for having a clear idea about the present position of the bank.
Share capital raised gradually 2004-09 for utilized the fund for development
motive are increase the share capital point of view.
The Bank surplus is raising condition on the year 2004-06 but the year 2006-08
is reduced of the bank profit condition after that 2009 started increase the profit.
Normally any institution is happen floating condition but have any reason for that
floating.
The bank investment is reduced because the investment funds to contribute in

the advances for provide loans to customers. Any institution is contribute excess
money for various sector are get any gain.
Funds flow of the bank is increase gradually, so the institution are using the
funds corrective path and constant way
48
3.2 Suggestions .
In bank, money call fund have excess in that fund to short term deposit for other
bank. The money call if invest in the mutual fund and gain more from short term
deposit.
The bank having depositor loan and jewel loan scheme, so the process is limited
the bank increase more facilities to customer.
The Bank have owned funds in ideally, its to investment in any other sector are in
share and debenture for earn income from the field and bank get some sources
from share and debentures.
The bank can increase its share capital by permitting the urban cooperative bank
apex institutions an cooperative sugar mills to became share holder
49
3.3 CONCLUSION
The project entitled A study on Financial Performance of the TAMIL NADU

STATE APEX CO-OPERATIVE BANK LIMITED is carried out with the help of
secondary data which were collected from the various report of the bank. The study was
aimed to analyze the Financial and operating efficiency of the bank during the year
based on 2005-2009.
50
BIBLIOGRAPHY
1. I.M.PANDEY, Financial Management, Vikas Publication, Ninth edition, year
2009.
2. PRASANNA CHANDRA, Fundamental of Financial Management, Tata McGraw Hill, fifth edition, year 2004.
Websites:
www.headerp.com
www.Investopedia.com
www.moneycontrol.com
51
APPENDICES
Balance Sheet as on 31st march for five years
Particulars
2005
2006
2007
2008
2009
Liabilities
40,94,70,000.00
53,47,60,000.00
247,94,20,000.00
443,75,10,000.00
635,09,10,000.00
10. Reserve
439,13,78,942.56
510,49,00,252.00
560,87,12,759.33
626,76,18,714.44
632,53,71,799.62
11. Surplus
25,37,71,690.20
28,01,59,366.31
21,78,09,498.03
15,11,76,286.30
33,73,97,767.23
12. Borrowings
1082,17,69,938.98
1026,75,97,090.66
878,22,74,925.00
608,40,24,496.00
830,58,55,003.00
13. Branch
adjustment
14. Deposits
-----------------------
21,73,265.00
43,37,167.85
-------------------
39,16,700.07
3062,57,86,622.88
3126,78,27,388.61
3263,50,40,050.00
3993,71,49,661.16
4429,15,81,597.70
15. Liabilities
86,32,93,583.20
68,36,27,205.50
72,20,45,583.10
92,61,17,795.39
95,99,80,653.45
16. Other
liabilities
Total
liabilities
Assets
56,90,96,785.90
81,14,62,251.00
204,38,06,437.70
109,93,86,794.45
310,33,46,126.26
4793,45,67,563.77
5075,25,86,823.29
5249,34,46,430.29
5890,29,83,747.74
6967,83,59,647.33
8. Fixed assets
7,18,40,253.79
7,31,95,585.82
7,08,80,439.14
736,04,179.90
703,47,547.49
9. Other assets
12,24,25,523.10
13,16,82,887.70
43,21,50,298.60
21,14,76,252.63
27,05,98,583.44
10. Advance
2823,30,14,280.00
3040,70,58,390.00
242,95,93,933.52
3336,26,10,831.25
3296,00,83,425.03
11. Investment
1209,09,53,372.00
1105,36,40,414.00
1083,73,78,158.00
1458,51,13,237.00
645,56,74,636.00
12. Liquid assets
323,46,32,196.00
297,70,09,538.00
316,34,43,601.00
367,01,79,246.96
296,16,55,455.03
13. Money call
417,00,00,000.00
611,00,00,000.00
556,00,00,000.00
700,00,00,000.00
1695,00,00,000.00
1,17,01,938.89
-------------------
-------------------
-------------------
-------------------
4793,45,67,563.77
5075,25,86,823.29
5249,34,46,430.29
5890,29,83,747.74
6967,83,59,647.33
9. Share capital
14. Branch
adjustment
Total Assets
52

Financial Performan

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A STUDY ON FINANCIAL PERFORMANCE OF TAMILNADU STATE

APEX CO-OPERATIVE BANK LIMITED.

Dept of Management Studies

Dept of Management Studies

R.M.K ENGINEERING COLLEGE

R.M.K ENGINEERING COLLEGE

Gummidipoondi Taluk, Tiruvallur Dist.

Gummidipoondi Taluk, Tiruvallur Dist.

I wish to express my deep sense of gratitude to Dr.premaSankaran MBA, Ph.D.

1.1.1 Need And Importance Of The Study

1.1.2 Scope of study

1.1.3 Objectives of the study

1.1.4 Research Methodology

1.1.4.2 Sources of data

1.1.4.3Tools and Techniques

1.1.5 Limitations of the study

1.2 REVIEW OF LITERATURE

1.2.1 Theoretical Review of the Concept

1.2.2 Bank Profile

ANALYSIS AND INTERPRETATION

2.1.1 Ratio Analysis

2.1.2 Comparative Balance Sheet

2.1.3 Common Size Balance sheet

2.1.4 Funds Flow Statement

SUMMARY AND CONCLUSIONS

Ratio of Share Capital to Owned Fund

Amount Payment of Divided to Net Profit

Net Profit to Working Capital

Owned Fund From to Working Capital

Comparative Balance Sheet

Comparative Balance Sheet

Comparative Balance Sheet

Comparative Balance Sheet

Comparative Balance Sheet

Common Size Balance Sheet

Common Size Balance Sheet

Common Size Balance Sheet

Common Size Balance Sheet

Common Size Balance Sheet

Funds Flow Statement

Funds Flow Statement

Funds Flow Statement

Funds Flow Statement

Funds Flow Statement

Ratio of Share Capital to Owned Fund

Amount Payment of Divided to Net Profit

Net Profit to Working Capital

Owned Fund From to Working Capital

Financial statement is prepared for the purpose of presenting a periodical review or

1.1.1 NEED OF THE STUDY

1.1.2 SCOPE OF THE STUDY

Financial statements are usually concerned with and need to be informed

1.1.3 OBJECTIVE OF THE STUDY

To study the financial performance of the TAMIL NADU STATE APEX

To study of analyze the various ratios in relation to the solvency,

To analyze the flow of cash and funds.

To suggest some measures to improve of the financial performance of

1.1.4 RESEARCH METHODOLOGY

DEFINITION OF ANALYTICAL RESEARCH DESIGN:

1.1.4.2 SOURCES OF THE DATA:

1.1.4.3 TOOLS AND TECHNIQUES

Comparative balance sheet

Common size balance sheet