SIDDHESWAR CO-OPERATIVE BANK LTD, BIJAPUR

SIDDHESWAR CO-OPERATIVE BANK LTD, BIJAPUR
INTRUDUCTION
Co-operative societies are the forms business organization.
They are formed all over the world. It is voluntary association of
person for mutual benefit and its aims are accomplished of
through self help and collective efforts.
Co-operative organization is mutual help i.e. each for all
and all for each. Thus poor formers may from co-operative
credit societies to get cheap credit facilities and protect
themselves against the exploration of money lenders. Small
producer may from co-operative marketing societies the
exploration of traders.
The idea behind a co-operative society is that an isolated
and power less man in association with others can lift himself as
well others out of weakness into strength co-operative (i.e. work
together) for working out (i.e. solving) your economic problems
is the theory of co-operation.
Working capital is life blood business activities. It is also
regarded as the heart of business. If it becomes weak, the
business can hardly prosper and survive.
B.L.D.E.A’s MBA Programme

DEFINITION & MEANING OF CO-OPERATIVE
SOCIETY
According to Indian co-operative which societies which has
its objective the promotion of the interest of its members in
accordance co-operative principle.
H.calvert
Co-operative is defined as “a form of organization where in
persons voluntarily associate together as human beings on the
basis of equality for the promotion of the economic interestof
themselves.
FEATURES OF CO-OPERATIVE SOCIETY
1) Voluntary association:- A co-operative society is totally
based on voluntary membership. Person having a common
interest can join together to form as association.
2) Association of persons: - A co-operative society is as
association of persons & not capital. Individuals join a co-
operative as human beings & not as capitalization.

3) Open membership:- Membership of a co-operative society
is open to all adults irrespective of caste, class, religion etc.
4) Service motive:- Unlike other forms of business
organization, the primary objective of any co-operative society
is to provide service to its members and not for earning
maximum profits. “Service, not profit”.
5) Equity of distribution of profit: - In co-operative society,
society are not distributed as dividend among the members. A
small portion of profit, generally 9% of profits. 10% of profit is
used for the general welfare of the locality in which the society
is working.
6) Corporate status & state control: - A co-operative society
may be registered but most of the co-operative societies are
registered. A co-operative society enjoys certain privileges.
Such as exemption from the payment of income tax, stamp duty
& registration.
ESTABLISHMENT OF A CO-OPERATIVE SOCIETY
In India formation and registration of co-operative
societies is governed by the provision of Indian co-operative
society act of 1912 or the state co-operative act enforce in
various state.

For the formation of a co-operative society there should
at list ten members who are bound together bound by a common
bound ( i.e. belonging to the same locality, class or occupation
and having common and economic need). These members are
(promoters) should submit an application for registration to the
register of co-operative societies of the state in which the
society’s office is to be located.
The application for registration should state that
 Name & address of organization.
 Its function area.
 Its name & objectives.
 Liability & span of the capital use.
 Rules & condition for the persons who want be members
and other liabilities.
Points to be considered while forming of co-operative
society
A) Apex is the union bank of the co-operative society.
B) Financial year of the bank start from april 1st
of every year
and end on 31st
march.

C) An application pf registration of co-operative society must
contain all the information of Indian co-operative societies Act
1912 or state co-operative society enforce in various state.
D) Five copies of the rules and regulation of co-operative
society should be attached with the application.
E) If all the application of the group are male then there number
should be less then ten.
F) All the application should be having more than 18 years age
& all applicant should not belonging to same family.
G) The person who are submitting the application must have a
co-operative group & represent all of them & he should be given
all the rights of signing.
WHO CAN BE THE MEMBER OF CO-OPERATIVE
SOCIETY
• The member should not be of minor (not less than 18 years).
• The member should not be of unsound mind.
• He should not be engaged in any illegal activities
forbidden by the the law.
ADMINISTRATION OF CO-OPERATIVE
SOCIETIES
The management of co-operative societies is entrusted to a
committee knows as “ Managing committee”. The members of

the managing committee are elected directly by the members of
the co-operative society at the “Annual general meeting”.
Generally a co-operative society has the following office
bearers.
 President
 Vice president
 Secretary
 Treasurer
The general body of the members lays down the broad
objectives and the police of he society.
The managing committee determines the programmers and
procedure of the society. It is accountable to the general body of
the members.
The office bearers are responsible for the conduct of the day-
to-day affairs of the society in accordance with the decision of
the managing committee.

TYPES OF CO-OPERATIVE SOCIETIES
1. Consumer co-operative societies
2. Producers co-operative societies
3. Marketing co-operative societies
4. Forming co-operative societies
5. Housing co-operative societies
6. Other co-operative societies

NEED FOR THE STUDY
The aim need for the organization study is to make
the students acquainted with the practical knowledge about the
overall functioning of the finance department in the
organization.
It gives opportunity to study the human behavior &
also makes one ready to face different situation which normally
would come across while working in different environment.
To understand the behavior, culture of an organization
and to know about the various polices of the organization and its
performance and its future strategies.
PURPOSE OF THE STUDY
The purpose of the study is about the profit & loss of the
bank and also about their share capital, deposit & working
capital of the SHRI SHEDDESHWAR CO-OPERATIVE
BANK
OBJECTIVES OF THE STUDY

The primary objective of the specialization study is to the
students to know the practical applicability of the theoretical
concept into business decision in the organization.
The other objectives of the study are as follows
• Details study of finance department.
• To understand the aspect of the finance department.
• To gain first-hand experience from the organization.
• To integrate practical experience from the organization.
• To understand the behavior and culture of an
organization
• To gain all-round view of financial management
operation.
• To analyze the present status and future strategies of the
organization.
Limitations of the study:
1. The names of the borrowers of loans were confidential.

2. The availability of data was limited.
3. The availability of Time was limited
CHAPTER 2
THEROTICAL
BACKGROUND

MEANING & DEFINTION OF WORKING
CAPITAL
Working capital in simple terms is the amount of funds,
which a company, must have to finance its day to day operation,
it can be registered as part /portion of capital, which is,
employed in short operation. Every organization invents their
funds in two terms of capital namely,
1. Fixed capital
2. Working capital
The amount invest in the asset like plant and machinery,
building, furniture etc, block on permanent basis and is called
Fixed capital organization not only requires Fixed capital, but
also need of fund to meet day o day operations for short term
purpose, such funds is called working capital.
Definition of working capital
Genestenberg
“Working capital means current assets of a company that are
changed in the ordinary course of business, form one to another,
for ex, form cash to inventories to receivable, receivable to
cash”.

Westen & Brigham
“Working capital refers to a investment in short term assets
cash, short term securities accounts receivables and
inventories”.
J.Smith
“The sum of the current assets is the working capital of the
business.
“WORKING CAPITAL =CURRENT ASSETS- CURRENT
LIABILITIES”
COMPONENTS OF WORKING CAPITAL
There are two components of working capital
A. Current Assets
B. Current Liabilities
A.Current Assets
An assets is termed as current when it is acquired either for
the purpose of selling or disposing of after taking some required
benefit through the process of manufacturing of which
constantly changes in form and contributes to transaction take
place with the operation of the business although such assets
does continue for long in the same form.
Components of current Assets are as follows

 Cash & bank balance
 Stock of raw material at cost-work in process and
finished
Goods.
 Advanced receivable in cash or for value to be received.
 Security deposits with electricity board –telephone
department balances with customers.
 Deposits under the company scheme.
 Prepaid expenses.
 Miscellaneous payment of income takes credit certificates.
 Excise duty and sales tax recoverable.
 Outstanding debts for a period exceeding six months.
CURRENT LIABILITIES
Components of current liabilities are as follows.
 Non – refundable non – interest bearing advance against
subscription to shares.
 Sundry creditors for the goods & expenses.
 Income tax deducted at sources from contactors.
 Expenses payable.
 Amount due to promoter of company.
 unclaimed dividend.
 Security deposits.
 Dealers deposits.
 Liabilities for bills discounted.

CLASSIFICATION OF WORKING CAPITAL

A) on the basics of concepts
a) Net working capital
Working capital
On the basis of concept On the basis of time
Networking
capital
Gross networking
capital
Permanent
working
capital
Variable
working
capital
Seasonal
working
capital
Special
working
capital
Initial
working
capital
Regular
working
capital

This is difference between current asset & current
liabilities. Current liabilities are those that are expected to
mature within an accounting year & include creditors, bills
payable & outstanding expenses.
Gross working capital is the amount of funds invested in
the various components of current assets.
b) Gross working capital
Gross net working capital refers to the difference
between current assets & current liabilities. This concept
enables the firm to determine how many amount is available at
its disposal for its operational requirements.
B) On the basis of time
a) permanent working capital
Permanent working capital is the permanently locked up in
the circulation of current assets. It covers minimum amount
requested for maintaining the circulation of current assets. It
covers the minimum amount requested for maintaining the
circulation of current assets.
i) Initial working capital

At its inception & during the formative period of its
operations a company must have enough cash to meet its
obligations. The need for initial working capital is for every
company to consolidate its position.
ii) Regular working capital
It refers to the minimum amount of liquid capital required
to keep up the circulation of the capital from the cash
inventories to account receivable and from account receivables
to back again cash. It consists of adequate cash balance on hand
and bank, adequate stock of raw materials and finished goods
and amount of receivables.
b) Variable working capital
It refers to the past of the working capital that changes
with the volume of business it may be divided into classes.
i) Seasonal working capital
The working capital required to meet the seasonal
requirement of the business is seasonal temporary working
capital.
ii) Special working capital
The capital required to meet any special operations such as
experiments with new products or new techniques of production
and making interior advertising campaign ect, is also know as
special working capital.
DETERMINANTS OF WORKING CAPITAL

These are following factors which the extent of the working
capital
1) Generally Nature of Business
Public utility concern, like Railways needs less amount of
working capital compared to that of trading or manufacturing
concern.
2) Size of the business unit
Generally the larger the size of the raw material is also
determining the working capital needed by the particular
company.
3) Length of the period of manufacturer
The time taken to convert the raw material is also
determining the working capital needed by the particular
company.
4) Seasonality of operation
A Firm manufacturing fans require more working capital
in summer months compared to that winter month.
5) Production policy
In the labor intensive industries, the working capital
requirements are more, where as in the cases of highly capital-
intensive industries are less.
6) Rapidity of turnover

The faster the sale, the larger will be the turnover and also
the working required will be less compared to that slow
turnover.
7) Terms of purchase and sales
Firm which purchase goods on cash basis, but sells there
goods on credit basis naturally required a larger amount of
working capital compared to that of the firm purchaging goods
on credit basis and selling those on cash basis.
8) Dividend policy
A company following conservative dividend policy needs
little amount of working capital, that the company following
liberal dividend policy.
9) Growth and expansion of business
Growing companies require more working capital than
that of static companies, which do not go for available
opportunities.
10) Market condition
The degree of competition in the market tends to
determine the need of working in the perfect competition has to
have huge amount of working capital.

Chapter III
 ABOUT THE BANK BANK
 History
 Functions
 Details of bank register member
 Details of finance
 Objectives
 General organization chart
 Administrative organization chart
 Head branches
 Staff pattern at administrative office
HISTORY

Shri Siddheshwar co-operative Bank was started in
the year 1912 April 22 in he years 1912 under the leadership of
Late Vachana Pitamaha Rao Bahadur Dr. P.G.Halakatti (B.A.,
LLB) and in association of Late Diwan Bahadur Shri S.G.
Deshmukh under co-operative rules for a small business, for the
sake of poor and middle class people, with the amount of Rs.
2500/- Share capital without any deposits started the business. In
the year 1932 with Rs. 20,839 Share capital, Rs 16,821 reserved
fund and other funds, Rs 35,0661/- deposits and Rs 80,200
working capital bank started working with rules. Late after
analyzing the financial position and working procedure, Reserve
bank of the India in the year 1982 granted permission. At
present in the co-operative field siddheshwar bank is one of the
biggest bank. In the end of the year 31/03/10 bank contains Rs.
7.07 crore shares, Rs. 10.24 crore deposits and Rs. 263.48 crore
working capital.
FUNCTIONS
• It motivates limited, self service and co-operative feelings.
• Through share, Deposits, Loans it reserve money and the
reserved fund are given in the form of loan without any
burden on the people and reserve more amount.

• It reserve funds to the members of bank and the people
dependent on them.
• It undertakes work in progress.
• It motivates to start business, company and other business
and to fulfill this and to increase is provides possible help.

Details of Bank register member
No & Date 4217. Date 22/04/1912
Date of business started 22/04/1912
The permission of reserve bank DBOD, UBD, KA 322D Date
18/11/1982
Of India sl, no and date
Offices Bijapur, Bagalkot, Belgaum, and
Gulbarga
district. Head office and 11 branch
Details of members 1) ordinary member
2) co-members
Own building and plots Admistration bank, main bank K.C
market branch, College campus branch.
Jorapur peth branch, paschapur peth
branch, hudko colony branch, Indi town
branch & Ashram road these are having
building APMC branch & Basav nagar
are also having buildings
Auditing 1) according to accounting calculation
the RBI, assigned Auditors & audits
according to rules
Auditing from RBI Every year in the end of month march,
According to calculation RBI offcers
Auditing observation Except DD facility everything is
computerized

DETAILS OF FINANCE
1) Share capital
In the last 5 years he amount of share capital
and the number of members and co-members will be as
follows.
Years Numbers Amount
31/03/2006 40,291 6,97,76,975/-
31/03/2007 39,555 7,03,34,000/-
31/03/2008 39,557 7,03,73,950/-
31/03/2009 39,116 7,06,90,325/-
31/03/2010 38,840 7,07,03,100/-
Share Capital members
38,000
38,500
39,000
39,500
40,000
40,500
31/03/2006 31/03/2007 31/03/2008 31/03/2009 31/03/2010
Numbers

2) Funds
From the last 5years the reserve fund and other fund
details are as follows.
Years Reserve Other funds Total
31/03/2006 8,12,71,904.84 23,84,55,912.37 23,84,55,912.37
31/03/2007 8,64,35,187.23 25,17,09,626.37 25,17,09,626.37
31/03/2008 9,08,08,788.00 30,30,60,176.37 30,30,60,176.37
31/03/2009 9,90,81,878.73 31,87,03,446.68 31,87,03,446.68
31/03/2010 10,24,44,490.70 31,98,70,924.68 31,98,70,924.68
3) Working Capital
The Details of the working capital is as follows
Years Amount
31/03/2006 254,55,57,407.75
31/03/2007 216,99,81,701.48
31/03/2008 240,81,26,904.27
31/03/2009 250,74,37,705,73
31/03/2010 263,47,83,752.32

4) Deposit
Bank accepts regular, saving, pigmy and fixed deposits
the details of the deposits in the last 5 years as following. In
the end of the 31/03/2006 &31/03/2007 deposits gets
supposed. In the end of last 3 years i.e 31/03/2008, 31/03/2009
& 31/03/2010 there is an increase and deposits are secured.
Years Amount
31/03/2006 2,24,22,65,504.69
31/03/2007 1,85,02,61,329.29
31/03/2008 1,99,66,76,887.43
31/03/2009 2,08,54,52,346.55
31/03/2010 2,15,61,25,139.31
5) Outside Borrowings
Form the last few years the situation of outside
borrowing has not raised. The reserve of bank are more.
6) Investments
According to banking Act 1949 section the end of the
year 31/03/2009 RS 6972.57 accordingly reserved invested
investment in these RS 3651.44 are government &
confidential letters.
The inflation & deflation funds created by government
confidential letter. These funds contain RS 30 lakhs.

7) Borrowings
While providing loans more importance is given to
profit. It gives more importance to those forms which are
necessary / important and then grant loans. The details of the
loans provided in last 5 years.
Years Amount
31/03/2006 1,39,01,76,619.00
31/03/2007 1,25,23,36,852.95
31/03/2008 1,00,00,76,639.83
31/03/2009 93,05,37,955.52
31/03/2010 77,82,920.00
8) Overdue debts
In the end of the year 31/03/10 over due debts amoun to
Rs. 2819.98 lakhs & the total debts wiil be 37.16 last year its
percentage was 34.05 (It is a irregular loan accounts).
Non performance assets
Loan account treated as non performance account after
90 days of the day of overdue. In the last 5 years the non
performance assets are as follows:
P & L account / net loss

The details of the P & L account & net loss in the las 6
years is as follows:
Year P&L Net Loss
31/03/2006 -821.93lakh 1285.34lakh
31/03/2007 27.80lakh 1257.54 lakh
31/03/2008 155.34 lakh 1102.20 lakh
31/03/2009 60.22 lakh 1102.17 lakh
31/03/2010 337.92 lakh 764.25 lakh

On the basis of possible loss in the property the
maximum number of capital (CRAR) Capital Risk
Assets Ratio
According to the direction of reserve bank of India the
C.R.A.R of the bank should be maximum 9 from last 6 years he
Ratio of the C.R.A.R will be as follows:
Years %age of CRAR
31/03/2006 4.47
31/03/2007 7.31
31/03/2008 10.69
31/03/2009 12.97
31/03/2010 24.00

Auditing
There is a system of concurrent auditing as well as
statutory auditing by the charted accountant appointed by the
state government.
Branches
There are otally 11 main branches. In which one of he
branch is in Indi town & the rest of 10 are situated in different
areas of Bijapur. Main branch of Bank are in K.C market,
college campus, Joraur peth, paschapur peth, Hudko colony,and
On the basis of possible loss in the
property the maximum number of capital
40%
22%
18%
12%
8%
31/03/2006
31/03/2007
31/03/2008
31/03/2009
31/03/2010

in Indi & Ashram Road, branches are having security Blocks. In
the branch excep Indi, other branches are gaining profit.
Computerized
To provide good service to the members of bank,
Depositors customers in main branch & other branches. And
except D rest other work of banks are done through computers,
OBJECTIVES OF THE BANK
 To finance co-operative societies registered and deemed o
have been registered under that co-operative societies Act in
force in the area.
 To rise funds for the purpose of financing co-operative
societies, individuals and other and generally to carryon
Banking business.
 To develop assist and co-ordinate he work of affiliated
societies.
 To act as an balancing center for the surplus funds of such
societies.
 To arrange for the supervision and inspection of affiliated
societies.
 To one branches, pay office and extension counter and
suitable center and frame rules for their conduct and
working and transact any type of banking business on behalf

of other banks and societies registered under any Act with
the previous approval of the register.
 To make advance to individual on the valuable / approved
securities subject to the rules framed by the Board and
approved by the registrar.
 To purchase, sell, transfer, pledge Government promissory
notes, bonds, securities, municipal, zilla parishat and port
trust Bonds, debenture guaranteed by government for the
legitimate investment of the surplus funds of the bank or on
behalf of its members or depositors without incurring any
financial responsibility and to do all things incidental to
such business.
 To deploy the resource of the bank in profitable avenues
subject o rules framed by Board and approved by the
registrar.
 To the ordinary banking business for properly utilizing this
carried on only for such period under such conditions. As
the Register shall prescribe in each case.
 To maintain a library of co-operative literatures and
laboratories.
 To receive for safe custody securities and ornaments.
 To draw, accept, negotiate and sell bills of exchange with
the rules that shall be framed by the board for the purpose.

Organization chart of S.S bank
ANNUAL GENERAL BOARD OF SHARE HOLDERS
BOARD OF DIRECTORS
PRESIDENT (in his absence VICE-PRESIDENT)
GENERAL MANAGER (chief Executive Officer)
Administrative officer
Head office
Branches

A.G.M &
BOARD
MEETIN
GS/SUB-
COMMI
TTEESS
Legal &
Public
Relation
Inspecti
on &
funds
mnagem
ent &
Returns
to RBI
& co-op
Dept
Est &
Gener
al
Loan
Reco
very
&
ARN
fillin
g
Exicut
ion of
loan
A/C
throug
h sale
officer
Type &
Inward
& out
ward

Head office / branches
MANAGER / BRANCH MANAGER
Staff pattern at Administrative Office
Administration & Establishment:
Deputy General Manager or In-charge of the section &
Asst general manager the general manager.
To record proceeding and
maintain files of the
section.
Senior assistant Establishment maintenance
of some files & registers.
Junior assistant to assist the junior officer in
disposing off the loan
applications and maintain
inward & out ward.
Banking and funds management
Asst general manager In-charge of the section,
control over the Head Office
Cash &
Valuable
s
Disbursement
of loans
Acceptance
of Deposit
General
control
over the
staff
Inward &
outward

& Branches and activities
and investment of funds.
Junior Officer Inspection of Branches and
submission of reports.
Consolidation of accounts
and preparation of statement.
Junior assistants to assist he junior officers,
in-charge of Branch
inspection.
Loans and Recovery of loans
Assist General Manager In-charge of the section and
review the recovery of loan at
H.O and Branches
Senior assessment To arrange to file ABN cases
and preparation of
consolidated statements of
loan section.
Junior assessment To assist the senior officer.
Legal & public relation
Senior officer To attend the legal cases, staff
Disciplinary action,
customers, Deposits and
members complaints and
grievance.
Sales department

Senior officer As sale officer of the
department
Junior Assistant To assist the sale officer.
Peon Authorized peon of the
department
CHAPTER 4
Meaning & Definition of WCM
Components
Classification
Factors

MEANING & DEFINTION OF WORKING
CAPITAL
Working capital in simple terms is the amount of funds,
which a company, must have to finance its day to day operation,
it can be registered as part /portion of capital, which is,
employed in short operation. Every organization invents their
funds in two terms of capital namely,
Fixed capital
Working capital
The amount invest in the asset like plant and machinery,
building, furniture etc, block on permanent basis and is called
Fixed capital organization not only requires Fixed capital, but
also need of fund to meet day o day operations for short term
purpose, such funds is called working capital.
Definition of working capital
Genestenberg
“Working capital means current assets of a company that are
changed in the ordinary course of business, form one to another,

for ex, form cash to inventories to receivable, receivable to
cash”
Westen & Brigham
“Working capital refers to a investment in short term assets
cash, short term securities accounts receivables and
inventories”.
J.Smith
“The sum of the current assets is the working capital of the
business.
“WORKING CAPITAL =CURRENT ASSETS- CURRENT
LIABILITIES”
COMPONENTS OF WORKING CAPITAL
There are two components of working capital
A. Current Assets
B. Current Liabilities
A. Current Assets
An assets is termed as current when it is acquired either
for the purpose of selling or disposing of after taking some
required benefit through the process of manufacturing of
which constantly changes in form and contributes to
transaction take place with the operation of the business
although such assets does continue for long in the same form.

Components of current Assets are as follows
Cash & bank balance
Stock of raw material at cost-work in process and finished
Goods.
Advanced receivable in cash or for value to be received.
Security deposits with electricity board –telephone department
balances with customers.
Deposits under the company scheme.
Prepaid expenses.
Miscellaneous payment of income takes credit certificates.
Excise duty and sales tax recoverable.
Outstanding debts for a period exceeding six months.
CURRENT LIABILITIES
Components of current liabilities are as follows.
 Non – refundable non – interest bearing advance against
subscription to shares.
 Sundry creditors for the goods & expenses.

 Income tax deducted at sources from contactors.
 Expenses payable.
 Amount due to promoter of company.
 unclaimed dividend.
 Security deposits.
 Dealers deposits.
 Liabilities for bills discounted.
DETERMINANTS OF WORKING CAPITAL
THESE ARE FOLLOWING FACTORS WHICH THE
EXTENT OF THE WORKING CAPITAL
 Generally Nature of Business
Public utility concern, like Railways needs less
amount of working capital compared to that of
trading or manufacturing concern.
 size of the business unit
generally the larger the size of the raw material is
also determining the working capital needed by the
particular company.
3)length of the period of manufacturer
The time taken to convert the raw material is also
determining the working capital needed by the
particular company.

4)seasonality of operation
a Firm manufacturing fans require more working
capital in summer months compared to that winter
month.
a. production policy
in the labor intensive industries, the working
capital requirements are more, where as in the cases of
highly capital-intensive industries are less.
6) rapidity of turnover
The faster the sale, the larger will be the turnover and
also the working required will be less compared to
that slow turnover.
terms of purchase goods on cash basis, but sells there
goods on credit basis naturally required a larger amount of
working capital compared to that of the firm purchaging goods
on credit basis and selling those on cash basis.
8) dividend policy
A company following conservative dividend
policy needs little amount of working capital, that the company
following liberal dividend policy.
9) Growth and expansion of business
Growing companies require more working capital
than that of static companies, which do not go for available
opportunities.
10) market condition

The degree of competition in the market tends
to determine the need of working in the perfect competition has
to have huge amount of working capital.
Table No-4.1
Current Assets in 2006
particulars Amount percentage
cash in hand 17638.18 ------
investment 6263.82 64.48
loans and
advance
18654.36 197.8
total 42556.36 262.28

Interpretation
The above graph which shows overall composition of
the highest of loans & advance 197.8%. and the
investment is 64.48%.
Table No 4.2
Current Liabilities in 2006
Bills for
collection
4367.17 -----
Bills payable 6257.28 43.27
Other payable 6476.34 3.5
Total 17100.79 46.72

0
1000
2000
3000
4000
5000
6000
7000
Bills for collection Bills payable Other payable
amount
percentage
Interpretation
The above Graph shows that the bills for collection is 43.27 &
the bills payable is 3.50.
Working capital
particulars Amount
1 current assets
Cash in hand 17638.18
Investment 6263.82
Loans and advance 18654.36
(Total assets) 42556.36
2. Current Liabilities
Bills for collection 4367.17
Bills payable 6257.28
Other payable 6476.34
(Total liabilities) 17100.79

3. Net working capital
Current Assets 42556.36
Less: Current Liabilities 17100.79
Net Working Capital 25455.57
Table No 4.3
particulars Amount Percentage
Investment 14632.13 20.24
Loans and advance 11364.11 22.33
(Total assets) 44342.5 42.57
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
20000
Cash in hand Investment Loans and advance
Amount
Percentage

Interpretation
The above graph which shows overall composition of current
assets is the Investment is 20.24% and loan advances 22.23%.
Table No 4.4
Particulars Amount Percentage
(Total liabilities) 22671.62 131.27
0
2000
4000
6000
8000
10000
12000
Amount
Amount

Interpretation
The above Graph shows that the bills for collection 30.61%
and other payable is 100.66%.
Working capital Analysis for the year ending
31-3-2007
Particulars Amount
1 Current assets
Investment 14632.13

2 Current Liabilities
Table No 4.5
Cash in hand 18366.52 ---
(Total assets) 35819.96 163.83
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
20000
Amount
Amount

Interpretation
The above Graph which shows overall composition of
current assets is the highest of Loans and advance 109.25% and
the investment 54.58%.
Table No 4.6
Total 11728.47 37.98
0
500
1000
1500
2000
2500
3000
3500
4000
4500
Amount
percentage

Interpretation
The above Graph shows that the bills payables 30.73% and
other payables 7.25%.
Working capital Analysis for the year ending
31-3-2008
Particulars Amount
1 Current assets
Investment 8340.32
2 Current Liabilities

Table No 4.7
(Total assets) 63417.47 73.03
0
5000
10000
15000
20000
25000
Amount
Amount

Interpretation
The above Graph shows overall composition of current assets is
the highest of Loans and advances 38.31% and investment the
34.72%.
Table No 4.8
Current Liabilities Amount
Percentage
0
2000
4000
6000
8000
10000
12000
14000
16000
Series1

Interpretation
The above Graph shows that the other payable is 48.57% and
the bills payable is 18.26%.
Working Capital Analysis for the year ending
31-03-2009
particulars Amount
Investment 15430.22
2. Current Liabilities Amount

3. Net working capital Amount
Table No 4.9
(Total assets) 63417.47 2.621
B.L.D.E.A’s MBA Programme0
5000
10000
15000
20000
25000
Cash in hand Investment Loans and
advance
Amount
Amount

Interpretation
The above Graph shows overall composition of current assets is
the highest of Loans and advances 38.31% and investment the
34.72%.
Table No 4.10
Particulars Amount(Rs in
Lakhs)
percentage
B.L.D.E.A’s MBA Programme0
2000
4000
6000
8000
10000
12000
14000
16000
18000
Bills for
collection
Bills payable Other payable
Amount(Rs in Lakhs)
Amount(Rs in Lakhs)

Interpretation
The above Graph shows that the other payable is 53.97% and
the bills payable is 58.81%.
Working Capital Analysis for the Year ending
31-3-2010
particulars Amount
1. Current Assets
Investment 18643.11
2. Current Liabilities

Table No 4.11
S.No
Years Working
Capital
Difference Growth Rate
1 2005-06 25455.57 - -
2 2006-07 21670.43 3785.14 14.86%
3 2007-08 24091.47 2420.57 11.16%
4 2008-09 25074.38 982.91 4.07%
5 2009-10 26347.2 1272.82 5.08%
Table Showing overall Working Capital for the Year
2006-2010
Graph of overall Working Capital
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
16.00%
2006-07 2007-08 2008-09 2009-10
Growth Rate -
Growth Rate -

Interpretation
The above Graph show that overall working capital was
increased year by year 2005-06(0%), 2006-07(16.45%), 2007-
08(20.90%). But it was decreased in the year 2008-09 is
(10.56%) and again increased in 2009-10(30.6%).
Chapter 5

Finding & Recommendation
Conclusion
Suggestion
Bibliography
Findings and Suggestion
Findings
1. Net Operating Profit after Tax of the OTPL Company shows
the good profit in the current year. So, the company has
maintaining good interest in since last two years. And also
company earned handsome profit.
2. Weighted Average Cost of Capital has increased last year to
current year. It shows that cost of capital is maintained properly
in the current year. Because Cost of Equity has remained the

same in these two years, and the overall cost of capital is
distributed equally to share holders.
3. As per calculation of consolidated statement of EVA, EVA
showing positive balance since last two year. So, the OTPL
Company has earned so much of profit for continuously for two
year with tax rate of 35%.
4. Cost of Equity is the same for two year. It showing that no
increased and no decreased in the two years, because, it
maintained a sufficient equity in the company.
CONCLUSION
Economic Value Added can be every company’s most
useful metric and decision guide in the new economy. It is
equally useful for the management of the tangible and intangible
the clicks and bricks, the people and the machines, the labor and
the capital. EVA is a new tool in analyzing the company’s
financial performance, companies financial performance can be
better understood with the help of EVA.
EVA is based also on historical accounting items. This
peculiar characteristic of EVA is due to the fact that book value
is irrelevant i.e. I can be canceled out in valuation formula of
EVA. In periodical performance measurement EVA can

however in some shortcomings as accounting rate of return
(ROI).
As per my study the company is positive Economic Value
Added for the past two year. So, company should satisfy.
Suggestions
1. NOPAT s increasing year to year. Would like to suggest
that company should on cost of capital and interest. It
automatically Leads Company earns higher profit.
2. WACC has increased in last year to current year. So, the
company should continue increasing WACC in coming years
also. Because overall cost of Capital is distributed among the
share holders.
3. As per Consolidated EVA chart it showing that increased
in 2005-06 compared to last year. So, I should be concentrate on
the better management of operating Investing Capital.

4. cost of equity has remained same since last two years, So,
he company is to redesign its capital structure because
increasing cost of equity in up coming years.
BIBLOGRAPHY
 Financial Management by books used from which I have
taken help for the theory part of the study:
o M.V.Khan
o I.M.Pandey
 I have also used the balance sheet of SHRI
SIDDESHWAR CO-OPERATIVE SOCIETY BANK (S.S.B)
those are from the year 2007-2008,2008-2009 & 2009-2010.

 I have also used the profit & loss of the SHRI
SIDDESHWAR CO-OPERATIVE SOCIETY BANK
BIJAPUR.

SIDDHESWAR CO-OPERATIVE BANK LTD, BIJAPUR

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