Introduction of The Study: Meaning and Importance of Finance

1.
1 INTRODUCTION
INTRODUCTION OF THE STUDY
The primary objective of any business enterprises is to attain profit. Based on this
objective, firm works towards its goal. Finance is regarded as the lifeblood of a business
enterprise to attain its goal. This is because in the modern money –oriented economy,
finance is one of the basic foundations of all kinds of economic activities. It is the master
key, which provides access to all the sources for being employed in manufacturing and
merchandising activities. It has rightly been said that business needs money to make
money. However, it is also true that money be gets more money, only when it is
properly managed. Hence, efficient management of every business enterprises is
closely linked with efficient management of its finances.
MEANING AND IMPORTANCE OF FINANCE
Finance is defined as the provision of money at the time when it is required. Every
enterprise needs finance to carry on its operations and to achieve its targets.
Finance is the lifeblood of an enterprise. Finance is concerned with financial

management of profit seeking business organizations engaged in all types of activities.
IMPORTANCE & FUNCTIONS OF FINANCIAL MANAGEMENT:
IMPORTANCE OF FINANCIAL MANAGEMENT:
1. Financial management covers a very large spectrum of activities of a business.

2. Financial management influences the profitability or return on investment of a
business.
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3. Financial management affects the solvency position of a business.
4. Financial management affects the liquidity position of a business.
5. Financial management affects the cost of capital.
6. Good financial management enables a business to command capital resources
flowing into the business.
7. Market value of the business can be increased through efficient and effective
financial management.
8. Efficient financial management is necessary for the survival, growth, expansion
and diversification.
FUNCTIONS OF FINANCIAL MANAGEMENT:
The function of financial management includes the investment function, financing

function and dividend function.
1. INVESTMENT FUNCTION:
It is concerned with capital budjeting and current asset management. Capital

budgeting deals with fixed asset management. Inventory management,
receivables management, marketable securities management, cash
management, working capital administration comes under current assets
management.
It refers to raising necessary funds for backing up investment function. It

deals with capital structure of the business. Lot of managerial planning and
control are needed in financing function.
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2. DIVIDEND FUNCTION:
Dividend payment is necessary for shareholders except a return on their share

holdings. Retaining the profits and plugging back the same in the business may
become necessary because the company can invest more profitably than the
shareholders, the company can get established.
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1.2 COMPANY PROFILE
The Cooperative Banks functioning in Tamil Nadu are fulfilling the credit
requirements of the farmers, weavers, rural artisans, consumers of urban area. These
institutions are known as Cooperative Credit Institutions.
The Coop. institutions are functioning under two categories.
They are:
 Long-term Co-operative credit institutions

 Short-term coop. credit institutions
The Co-operative credit institutions functioning under short-term credit

structure are of three-tier in nature. At the grass root level, the Primary Agricultural Co-
operative Banks (PACBs) are functioning at village level. At the district level, the Central
Coop Banks (CCBs) are functioning with the headquarters at district capital and their
branches in various places of the districts concerned.
At the apex level, the Tamil Nadu State Apex Coop. Bank Ltd, (TNSC Bank)
is functioning at Chennai which co-ordinates the entire short-term coop. credit structure.
The Tamil Nadu State Apex Co-operative Bank Ltd. commenced its business during
November 1905 as an Urban Co-operative Bank.
It was subsequently changed into a District Central Co-operative Bank during

July 1920. At present, the Bank is functioning at Chennai with 44 branches , an
Extension Counter and H.O TNSC Bank is guiding the Dist.
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Central Co-operative Banks /Primary Agricultural Co-operative Banks in their
functioning and it is playing a major role in the co-operative movement of Tamil Nadu
was formed.
As such, the Bank has been serving the people of Tamil Nadu for a centenary for their
economic development. As far as Indian Co-operative movement is concerned, the
Bank has commenced its business from the very next year of the formation of coop.
movement in India.TNSC Bank is the first ever State Co-operative.
Bank having the credit of celebrating the centenary year. TNSC Bank has got
the license of Reserve Bank of India to carry on the banking business. TNSC Bank is a
Scheduled Coop. Bank and has been listed under the Second Schedule of RBI Act.
TNSC Bank is a member of the Deposit Insurance and Credit Guarantee

Corporation (DICGC) and is an insured coop. bank as per DICGC Act. TNSC Bank has
got a privilege of having its share capital by the Government of Tamil Nadu. TNSC Bank
has been under close supervision and monitoring of the higher financing agencies, viz.,
RBI,NABARD.
Periodical inspection and supervision are done by NABARD as per RBI

guidelines. Government of Tamil Nadu is reviewing the performance of the Bank
periodically. Eminent Co-operators have contributed for the growth and development of
the TNSC Bank.
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At present, TNSC Bank is headed by Thiru. TAMILARASAN, (Additional
Registrar of Coop. Societies) as Special Officer, who has been deputed from the
Government of Tamil Nadu.
History of the TNSC Bank:
The Mission of the Bank is to mobilize resources, provide banking products and other
professionalized services to the people, strengthen the affiliates, provide vibrant
leadership to the co-operative banking system, achieve sustained growth and ultimately
to attain prime position in the banking industry.
Ambition:
The ambition of the TNSC Bank is to feed the people and the Nation with prosperity,
by extending its areas of operation and activities to cover all facets of economic spheres
and integrated rural development.
Old in Tradition and Young in Outlook:
TNSC Bank, the Apex Co-operative Bank and the main purveyor of agricultural credit
in Tamil Nadu, has completed 104 years of useful and purposeful existence. TNSC
Bank is old in tradition but young and dynamic in outlook and action.
Leader of Co-operative Credit Movement:
TNSC Bank is the Leader of the Co-operative Credit Movement in Tamil Nadu for over a
century.
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First State Coop Bank to Celebrate Centenary Year:
TNSC Bank was the18th Co-operative Society to be registered in the erstwhile

Madras Presidency as “The Madras Central Urban Bank” and this Bank was the first
“Central Co-operative Bank” to be established in India.
Commencement of Business:
It was Sir V.C.Desikachariar, Kt. Who gave shape to the proposals formulatedby Sir P.
Rajagopalachariar, the first Registrar of Co-operative Societies. Sir V.C.
Desikachariar, Kt. along with 17 eminent personalities sent up to the Registrar of Co-
operative Credit Societies an application for the registration of the Bank under the Co-
operative Societies Act. The Government, in G.O.Ms.No.1022, Revenue, dated
19.10.1905 accorded the necessary sanction and the Registrar of Co-operative Credit
Societies registered the Bank on 23.11.1905. The Bank commenced its business on
26.11.1905.
Initial Authorized Share Capital:
The initial authorized Share Capital was Rs.25000/- divided into 50 shares of
Rs.500/- each. The 17 pioneers held one share each, 10 other new members held 11
more shares. The first call of Rs.50/- per share, was made on 26.11.1905. With the
addition of 2 more such calls, the paid-up Share Capital @ Rs.150/- per share,
aggregated Rs.4200/- as on 31.03.1906.
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First Loan:
The first loan was disbursed to No.21 Big Kancheepuram Urban Weavers’
Union on 14.02.1906.The first fixed deposit was received on 14.03.1906. The
Bank’s first accounting year ended on 31.03.1906 with a net profit of Rs.20-9-0.Its
the only Co-operative bank incurring profits through the year since its
establishments.
Best Performance Awards:
The National Federation of State Co-operative Banks Ltd. (NAFSCOB) has instituted a
scheme of performance awards to Apex Banks since 1982-83. It may be noted that our
Bank has been getting an award from the NAFSCOB continuously from 1985-86 as
detailed below:
1985-86: THIRD PRIZE for overall performance.
1986-87: SECOND PRIZE for overall performance.
1987-88: THIRD PRIZE for overall performance.
1989-90: SPECIAL AWARD for the outstanding performance under

Social Goals Development.
1991-92: FIRST PRIZE for overall performance.
Social Goals Development.
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Operational Efficiency.
The NAFSCOB has selected our Bank and awarded FIRST PRIZE for Best

Performance under "All India Mutual Arrangement Scheme" for 1996-97 and 1997-98.
The National Bank for Agriculture and Rural Development has instituted a
scheme of performance awards to Apex Banks since 1995-96. Our Bank has got
SECOND PRIZE for Overall Performance for 1995-96 and 1998-99.
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1.3 INDUSTRY PROFILE
The Banking Industry was once a simple and reliable business that took deposits from
investors at a lower interest rate and loaned it out to borrowers at a higher rate.
However deregulation and technology led to a revolution in the Banking
Industry that saw it transformed. Banks have become global industrial powerhouses that
have created ever more complex products that use risk and securitisation in models that
only PhD students can understand. Through technology development, banking services
have become available 24 hours a day, 365 days a week, through ATMs, at online
bankings, and in electronically enabled exchanges where everything from stocks to
currency futures contracts can be traded .
The Banking Industry at its core provides access to credit. In the lenders case,
this includes access to their own savings and investments, and interest payments on
those amounts. In the case of borrowers, it includes access to loans for the
creditworthy, at a competitive interest rate.
Banking services include transactional services, such as verification of account details,

account balance details and the transfer of funds, as well as advisory services, that help
individuals and institutions to properly plan and manage their finances. Online banking
channels have become key in the last 10 years.
The collapse of the Banking Industry in the Financial Crisis, however, means that some
of the more extreme risk-taking and complex securitisation activities that banks
increasingly engaged in since 2000 will be limited and carefully watched, to ensure that
there is not another banking system meltdown in the future.
LAW OF BANKING
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Banking law is based on a contractual analysis of the relationship between
the bank (defined above) and the customer—defined as any entity for which the bank
agrees to conduct an account.
The law implies rights and obligations into this relationship as follows:
1. The bank account balance is the financial position between the bank and
the customer: when the account is in credit, the bank owes the balance to the
customer; when the account is overdrawn, the customer owes the balance to
the bank.
2. The bank agrees to pay the customer's cheques up to the amount
standing to the credit of the customer's account, plus any agreed overdraft
limit.
3. The bank may not pay from the customer's account without a mandate
from the customer, e.g. a cheque drawn by the customer.
4. The bank agrees to promptly collect the cheques deposited to the
customer's account as the customer's agent, and to credit the proceeds to the
customer's account.
5. The bank has a right to combine the customer's accounts, since each
account is just an aspect of the same credit relationship.
6. The bank has a lien on cheques deposited to the customer's account, to
the extent that the customer is indebted to the bank.
7. The bank must not disclose details of transactions through the
customer's account—unless the customer consents, there is a public duty to
disclose, the bank's interests require it, or the law demands it.
8. The bank must not close a customer's account without reasonable
notice, since cheques are outstanding in the ordinary course of business for
several days.
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These implied contractual terms may be modified by express agreement
between the customer and the bank. The statutes and regulations in force within a
particular jurisdiction may also modify the above terms and/or create new rights,
obligations or limitations relevant to the bank-customer relationship.
Some types of financial institution, such as building societies and credit unions,

may be partly or wholly exempt from bank licence requirements, and therefore regulated
under separate rules.
The requirements for the issue of a bank licence vary between jurisdictions but
typically include:
1. Minimum capital
2. Minimum capital ratio
3. 'Fit and Proper' requirements for the bank's controllers, owners,
directors, and/or senior officers
4. Approval of the bank's business plan as being sufficiently prudent and
plausible.
BANKING CHANNELS
Banks offer many different channels to access their banking and other services:
 A branch, banking centre or financial centre is a retail location where a bank or

financial institution offers a wide array of face-to-face service to its customers.
 ATM is a computerised telecommunications device that provides a financial
institution's customers a method of financial transactions in a public space
without the need for a human clerk or bank teller. Most banks now have more
ATMs than branches, and ATMs are providing a wider range of services to a
wider range of users. For example in Hong Kong, most ATMs enable anyone to
deposit cash to any customer of the bank's account by feeding in the notes and
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entering the account number to be credited. Also, most ATMs enable card
holders from other banks to get their account balance and withdraw cash, even if
the card is issued by a foreign bank.
 Mail is part of the postal system which itself is a system wherein written
documents typically enclosed in envelopes, and also small packages containing
other matter, are delivered to destinations around the world. This can be used to
deposit cheques and to send orders to the bank to pay money to third parties.
Banks also normally use mail to deliver periodic account statements to
customers.
 Telephone banking is a service provided by a financial institution which allows its
customers to perform transactions over the telephone. This normally includes bill
payments for bills from major billers (e.g. for electricity).
 Online banking is a term used for performing transactions, payments etc. over
the Internet through a bank, credit union or building society's secure website.
 Mobile banking is a method of using one's mobile phone to conduct simple
banking transactions by remotely linking into a banking network.
 Video banking is a term used for performing banking transactions or professional
banking consultations via a remote video and audio connection. Video banking
can be performed via purpose built banking transaction machines (similar to an
Automated teller machine), or via a video conference enabled bank branch.
TYPES OF BANKS
Banks' activities can be divided into retail banking, dealing directly with individuals and
small businesses;business banking, providing services to mid-market business;
corporate banking, directed at large business entities; private banking, providing wealth
management services to high net worth individualsand families; and investment
banking, relating to activities on the financial markets. Most banks are profit-making,
private enterprises. However, some are owned by government, or are non-profit
organizations.
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Central banks are normally government-owned and charged with quasi-regulatory
responsibilities, such as supervising commercial banks, or controlling the cash interest
rate. They generally provide liquidity to the banking system and act as the lender of
last resort in event of a crisis.
Banking in India originated in the last decades of the 18th century. The oldest
bank in existence in India is the State Bank of India, a government-owned bank that
traces its origins back to June 1806 and that is the largest commercial bank in the
country. Central banking is the responsibility of the Reserve Bank of India, which in
1935 formally took over these responsibilities from the then Imperial Bank of India,
relegating it to commercial banking functions. After India's independence in 1947, the
Reserve Bank was nationalized and given broader powers. In 1969 the government
nationalized the 14 largest commercial banks; the government nationalized the six next
largest in 1980.
Currently, India has 96 scheduled commercial banks (SCBs) - 27 public sector

banks (that is with the Government of India holding a stake), 31 private banks (these do
not have government stake; they may be publicly listed and traded on stock exchanges)
and 38 foreign banks. They have a combined network of over 53,000 branches and
17,000 ATMs. According to a report by ICRA Limited, a rating agency, the public sector
banks hold over 75 percent of total assets of the banking industry, with the private and
foreign banks holding 18.2% and 6.5% respectively.
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1.4 OBJECTIVES OF THE STUDY
Primary Objectives:
 To analyze the overall financial performance of TNSC Bank.
Secondary Objectives:
 To interpret the profitability of the TNSC Bank.
 To measure the managerial efficiency of the TNSC Bank.
 To measure the utilization of various assets during the period.
 To measure the short-term and long-term solvency of the firm.
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1.5 LIMITATIONS OF THE STUDY
Limitations:
 FSA (Financial Statement Analysis) is generally an outdated (because of

Historical Cost Basis) post-mortem of what has already happened. It is simply a
common starting point for comparison. Always use Constant Rupee / Dollar
analysis to account for inflation or increase.
 FSA is limited by the fact that financial statements are “window dressed” by
creative accountants. Window dressing refers to the understatement or
overstatement of financial facts.
 It is difficult and not easy to stay based on Financial Ratios whether a company is
healthy or not because that depends on the size and nature of the business.
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2.1 REVIEW OF LITERATURE
REVIEW OF LITERATURE:
Debaris Rej and Debarish Sur (1997) studied the Financial Performance on Bank of
Baroda: a case study of financial statement from the period of 1987-88 to 1996-1997 to
measure the profitability and to assess the degree of relationship between the selected
profitability ratios and also study the joint effect of the above ratio. He concluded that
the profitability of the Bank of Baroda was not suitable during the study period and
relationship between the variables both positive and negative associations.
R.SWAMINATHAN(1997) in his study made an attempt to analyze the report.

The secondary data were collected from the annual reports of Karur Vysya Bank for a
period of six years from 1990-91 to 1995-96. To examine the impact of financial
performance on the liquidity and profitability of the institution. To evaluate the financial
performance in the context of current assets.
JA.R.S.RAJESH(1998) in his study made an attempt to analyze the financial

performance of UNION BANK OF INDIA. The data were collected for a period of five
years from 1992-93 to 1996-97. Other than tool of ratio, average, coefficient of variation
the technique of simple correlation coefficient was used. His objectives of the study
were to examine the solvency position, to find out relationship between current assets
and current liabilities, receivables and long term assets. The findings of the study were
as the financial performance of the institution has considerably increased during the
study period. The rate of return on current assets has increased considerably.
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J.KAVITHA(1999) in her study analyzes the fianancial performance of ICICI
BANK LTD,ERODE. The data were collected for a period of five years starting from
1993-94 to 1997-98.The sources of data were secondary in nature being collected from
the annual reports of the company. The only tool used in the study was ratio analysis.
Her objectives of the study were as to analyze the effect of financial performance on
current assets and current liabilities. To analyze the effect of financial performance on
profitability and liquidity of the institution.
Steven M. Fazzari and Bruce c. Peterson (1993) Titled Financial Performance:

New Evidence on Financing Constraints Published by: Blackwell Publishing on behalf of
The RAND Corporation. This article presents new tests for finance constraints on
investment by emphasizing the often-neglected role of working capital ass both a use
and a source of funds. The co-efficient of endogenous working capital investment is
negative in a fixed-investment regression, as expected if working capital competes with
fixed investment for a limited pool of finance. This finding addresses a criticism of
previous research on finance constraints, that cash flow may simply proxy shifts in
investment demand. In addition, previous studies may have under-estimated the impact
of finance constraints on growth and investment because firms smooth fixed investment
in the short run with financial performance.
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2.2 RESEARCH METHODOLOGY
RESEARCH METHODOLOGY
The term research as a scientific & systematic search for pertinent information
on a specific topic . Research methodology is the way to systematically solve the
research problem. It may be understood as a science of studying how research is done
scientifically
PERIOD OF STUDY
Study period of the TNSC BANK for the period of 5 years from 2005 -2009.
Data collection
The data collections classified into two types are
I. Primary data
II. Secondary data
 Primary data
The primary data are data collected are directly from the source. i.e, enquires,
personal interview etc .
 Secondary data
The secondary data are data are collected from information which is
used by other. It is not direct information. This information is already collected and
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analysis by other and that information is used by others. The secondary data are
collected from following:-
 Bank’s annual report
 Bank’s website
 Manual

TOOLS USED FOR DATA ANALYSIS
 Comparitive Balance Sheet
 Common Size Balance Sheet
 Trend Analysis
 Ratio Analysis
 Charts & Diagrams
Tools and Techniques of Financial Statement Analysis:
Following are the most important tools and techniques of financial statement analysis:
 Horizontal and Vertical Analysis
 Ratio Analysis
Horizontal Analysis or Trend Analysis:
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Comparison of two or more year's financial data is known as horizontal
analysis, or trend analysis. Horizontal analysis is facilitated by showing changes
between years in both dollar and percentage form.
Trend Percentage:
Horizontal analysis of financial statements can also be carried out by computing trend
percentages. Trend percentage states several years' financial data in terms of a base
year. The base year equals 100%, with all other years stated in some percentage of this
base.
Vertical Analysis
Vertical analysis is the procedure of preparing and presenting common size statements.
Common size statement is one that shows the items appearing on it in percentage form
as well as in dollar form. Each item is stated as a percentage of some total of which
that item is a part. Key financial changes and trends can be highlighted by the use of
common size statements.
Ratio Analysis
The ratio analysis is one of the most powerful tools of financial analysis. It is the
process of establishing and interpreting various ratios. A financial ratio is the
relationship between two accounting figures expressed mathematically. Ratios provide
clues to the financial position of a concern. These are the pointers and indicators of
financial strength, soundness, position or weakness of an enterprise. One can draw
conclusions about the exact financial positions of a concern with the help of ratios.
Ratio analysis is an appraisal of the ratios to make proper analysis about the
strengths and weaknesses of the company’s operations. Ratio analysis is extremely
helpful in providing valuable insight into a company’s financial picture.
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The following ratios were taken into account and analyzed in regarding with the working
capital management and solvency of the company.
1. Current Ratio
2. Quick Ratio
3. Capital Gearing Ratio
4. Fixed Assets Turnover Ratio
Current Ratio:

Current Ratio = Current Assets
Current Liabilities

This ratio measures the solvency of the company in the short-term. Current assets
are those assets, which can be converted into cash within a year. Current liabilities and
provisions are those liabilities that are payable within a year. A current ratio of 2:1
indicates a highly solvent position.
Liquid Ratio or Acid-test Ratio:

Liquid Ratio = Quick Assets
Current Liabilities

Liquid ratio or Quick ratio is used as a measure of the company’s ability to

meet its current obligations. Since bank overdraft is secured by the inventories, the
other current assets must be sufficient to meet other current liabilities. A quick ratio of
1:1 indicates highly solvent position. This ratio is also called the acid test ratio. This ratio
serves as a supplement to the current ratio in analyzing liquidity.
Fixed Assets Turnover Ratio:
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Fixed Turnover Ratio = Turnover / Net Fixed Assets
Capital Gearing Ratio:
Fixed Turnover Ratio = Turnover / Net Fixed Assets
Limitations of Financial Statement Analysis:
Although financial statement analysis is highly useful tool, it has two

limitations. These two limitations involve the comparability of financial data between
companies and the need to look beyond ratios
Advantages of Financial Statement Analysis:
There are various advantages of financial statements analysis. The major benefit is that
the investors get enough idea to decide about the investments of their funds in the
specific company. Secondly, regulatory authorities like International Accounting
Standards Board can ensure whether the company is following accounting standards or
not. Thirdly, financial statements analysis can help the government agencies to analyze
the taxation due to the company. Moreover, company can analyze its own performance
over the period of time through financial statement analysis.
Disadvantages or Limitations:
Financial statements give an idea about the financial position of the company,
however, there are some limitations of the financial statements. The first
limitation is that a financial statement ignores the productivity and the skills of
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the employees in an organization. Management Decision Analysis Report gives
an idea about it but financial statements are unable to evaluate the skills which a
company has. Secondly, balance sheet does not give timely and relevant
information because it is based on historical costs and it does not give a fair idea
about the current position of the company. There are different accounting
measurement systems therefore, use of different techniques by different
companies can make the comparisons of financial statements difficult. Moreover,
income statement is considered a fiction because cash is king and income
statement ignores this fact.
IMPORTANCE OF FINANCIAL STATEMENT ANALYSIS:
At regular period public companies must prepare documents called financial

statements. Financial statements show the financial performance of an company. They
are used for both internal-, and external purposes. When they are used internally, the
management and sometimes the employees use it for their own information. Managers
use it to plan ahead and set goals for upcoming periods. When they use the financial
statements that were published, the management can compare them with their
internally used financial statements. They can also use their own and other enterprises’
financial statements for comparison with macroeconomical datas and forecasts, as well
as to the market and industry in which they operate in.
The four main types are balance sheets, profit and loss accounts, cash flow
statements, and income statements. At regular period public companies must prepare
documents called financial statements. Financial statements show the financial
performance of an company.They are used for both internal-, and external purposes.
When they are used internally, the management and sometimes the employees use it
for their own information. Managers use it to plan ahead and set goals for upcoming
periods. When they use the financial statements that were published, the management
can compare them with their internally used financial statements. They can also use
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their own and other enterprises’ financial statements for comparison with
macroeconomical datas and forecasts, as well as to the market and industry in which
they operate in.
The four main types are balance sheets, profit and loss accounts, cash flow
statements, and income statements.
Balance sheets:
Balance sheets provide the observant with a clear picture of the financial condition of
the company as a whole. It lists in detail the tangible and the intangible goods that the
company owns or owes. These good can be broken further down into three main
categories; the assets, the liabilities and the shareholder’s equity
Assets:
Assets include anything that the company actually owns and has disposal over.
Examples of the assets of a company are its cash, lands, buildings, and real estates,
equipment, machinery, furniture, patents and trademarks, and money owed by certain
individuals or/and other businesses to the particular company. Assets that are owed to
the company are referred to as accounts-, or notes receivables.
- Current Assets include anything that company can quickly monetise. Such current
assets include cash, government securities, marketable securities, accounts receivable,
notes receivable (other than from officers or employees), inventories, prepaid expenses,
and anyother item that could be converted into cash within one year in the normal
course of business.
- Fixed Assets are long-term investments of the company, such as land, plant,
equipment, machinery, leasehold improvements, furniture, fixtures, and any other items
with an expected useful business life usually measured in a number of years or decades
(as opposed to assets that wear out or are used up in less than one year. Fixed assets
are usually accounted as expensed upon their purchase. They are normally not for
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resale and are recorded in the Balance Sheet at their net cost less (less is accounting
term for minus) accumulated depreciation.
Other Assets include any intangible assets, such as patents, copyrights, other
intellectual property, royalties, exclusive contracts, and notes receivable from officers
and employees.
Liabilities:
Liabilities are money or goods acquired from individuals, and/or other

corporate entities. Some examples of liabilities would be loans, sale of property, or
services to the company on credit. Creditors (those that loan to the company) do not
receive ownership in the business, only a (usually written) promise that their loans will
be paid back according to the term agreed upon.
Current Liabilities are accounts-, and notes-, taxes payable to financial

institutions,accrued expenses (eg.: wages, salaries), current payment (due within one
year) of long-term debts, and other obligations to creditors due within one year.
Long-Term Liabilities are mortgages, intermediate and long-term loans, equipment

loans, and other payment obligation due to a creditor of the company. Long-term
liabilities are due to be payed in more than one year.
Shareholder’s equity (or net worth, or capital):
The shareholder’s equity is money or other forms of assets invested into the
business by the owner, or owners, to acquire assets and to start the business. Any net
profits that are not paid out in form of dividends to the owner, or owners, are also added
to the shareholder’s equity. Losses during the operation of the business are subtracted
from the shareholder’s equity.
Assets are calculated the following way:
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Assets=Liabilities+Net worth
Balance sheets show how the assets, liabilities, and the net worth of a business
are distributed. They usually are prepared at set periods of time, for example at the end
of each quarter. It is always prepared at the end of fiscal years. The periodic preparation
of the balance sheets, the owner and/or the manager of the company can see historic-,
and current trends andalsothe general performance of the corporation. It allows decision
makers to make adjustments when needed, like the proportion of liabilities to assets.
All balance sheets contain the same categories of assets, liabilities and net worth
figures. Assets are arranged in decreasing order of their liquidity . Liabilities are listed in
order of how soon they must be repaid, followed by retained earnings (net worth of
owner’s equity).
The categories and formats of Balance Sheets are established by a system

known as Generally Accepted Accounting Principles (GAAP). The system is applied to
all companies, large or small, so anyone reading the Balance Sheets can readily
understand what it is saying.
Profit and Loss Account:
Profit and loss accounts summarize the incomes and expenses of a company in a
given period of time. It also includes accruals too, which are incomes that will be
realized only after the particular Profit and Loss Account statement was prepared.
Income statements:
Income statements measure the company’s sales and expenses over a specific
period of time. They are prepared each month and fiscal year end. Income statements
show the results of operating during those accounting periods. They are also prepared
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using the Generally Accepted Accounting Principles (GAAP) and contain specific
revenue and expense categories regardless of the nature of the company.
Preparation of Income Statement:
The Income Statement normally shows whether the business is earning

profits or sustaining losses. It communicates the financial performance of the business.
The structureof the income statement differs with the nature of the business. The
business can either be a manufacturing, merchandising/trading or service entity.
Regardless of the structure, they however, communicate the same information.
Factors to be considered in the preparation of income statements are:
Revenues/Sales :
This item carries the revenues/sales generations of the company. Sales

consist of Cash Sales (cash is paid at the time of sale) or Credit Sales (Cash paid later).
The sales/revenue is made up with the following items:
Note:
Other Incomes/Revenues results from the revenues which are not core
business of the company. Such revenues are for example, if a company earns interest
from bankingservices, dividends received from investment of other companies or
subsidiaries, money awards, etc.
For a trading and service entity the same consideration is made for the
revenues/income as sown above. The only difference for the service company is the
return inwards since in most cases services are consumed when
manufactured/prepared with nothing to be left as a return.
28
Cost of Goods Sold:
This represents the total cost of buying raw materials, and paying for all the
factors that go into producing finished goods. The cost of goods should be deducted
from the sales revenues.
Note:
For manufacturing firm, the process of manufacturing goods is a continuous

process.Hence there might be materials which are in stock or some of the goods may
be half processed (work in progress) both at the opening of the financial year or at the
closure of the financial year. Hence, calculation of the cost of goods sold should include
consideration of all the items shown in the table above.
Service Firms:
In service companies such as telecommunications, cost of service provided may

be expressed as percentage of sales say 60% of the revenues generated regarded as
cost of services to pay for bandwidth access in a satellite company.
Gross Profit:
This is the difference between Net Sales and the Cost of Goods Sold. Gross profit
is the profit obtained from the normal operation of a business firm before incurring
operating expenses, tax and other deductions.
Expenses:
These are the expenses the company incurs in the process of generating
revenues.The expenses depend on the nature of the business firm.
29
Profit Before Interest and Tax:
This is equal to the Cost of goods sold less expenses.
Note:
Dividend is a portion of a company's profit paid to common and preferred

shareholders. It is paid to common stock holders only when the company makes
profit.In arriving at the income statement as shown above, there should be supporting
documents which when totalled brings the figures for the above items.
30
3.1.1 TREND ANALYSIS
3.1.1 TABLE SHOWING TREND ANALYSIS (in percentage):
Particulars 2004-05 2005-06 2006-07 2007-08 2008-09
Cash on Hand & 100 124.98 120.88 154.93 30.74
Bank
Investments 100 91.42 89.63 120.63 136.18
Interest 100 105.84 97.67 72.14 103.27
Receivable
Bills Receivable 100 145.01 92.57 71.34 69.64
Other Assets 100 107.60 353.02 174.92 221.08
Bills Payable 100 145.01 92.57 71.34 69.64
Overdue Interest 100 116.44 116.44 116.44 116.44
Reserve
Interest Payable 100 75.38 83.12 109.36 113.60
Other Liabilities 100 143.76 365.39 194.50 561.38
3.1.1 CHART SHOWING TREND ANALYSIS:
31
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
2004-05 2005-06 2006-07 2007-08 2008-09
Cash on Hand & Bank Invstments

Interest Receivable Bills Receivable
Other Assets Bills Payable
Overdue Interest Reserve Interest Payable
Other Liablities
INTERPRETATION:
The standard or base year is 2004, when compared with this year the Net Working
Capital Percentage for other years are 95.69%, 145.34%, 112.6%, and 156.58%. Thus
it can be interpreted that except for decline is 2005-06; there is an upward trend in the
bank’s short-term financial position. The decline in 2005 may be attributed , to the
natural calamities that occurred in that year, the bank had spent money for a large
extent. Thus there was a fall in cash balances. In the year 2008 cash balances
increased because the bank received compensation from government for loss incurred
by the company in the year 2005.
3.1.2 COMPARITIVE BALANCE SHEET
32
3.1.2.1 Table Showing Comparitive Balance Sheet as on 2004-05 & 2005-06:
Particulars 2004-05 2005-06 Increase/ % of

Decrease Increase/
Decrease
Assets:
Current Assets:
Cash on Hand & Bank 64377 80451 16074 24.97
Investments 120910 110536 -10374 -8.58
Loans & Advances 282330 304071 21741 7.70
Interest Receivable 9199 9736 537 5.84
Bills Receivable 471 683 212 45.01
Branch Adjustments 117 - -117 -100
Other Assets 1224 1317 93 7.60
Total Current Assets 478628 506794 28166 5.88
Fixed Assets 719 732 13 1.81
Total Assets 479347 507526 28179 5.88
33
Decrease Increase/
Decrease
Liabilities:
Current Liabilities:
Bills Payable 471 683 212 45.01
Branch Adjustments - 22 22 -
Overdue Interest Reserve 3686 4292 606 16.44
Interest Payable 8162 6153 -2009 -24.61
ACSTI 163 167 4 2.45
Other Liabilities 5528 7947 2419 43.76
Total Current Liabilities 18010 19264 1254 6.96
Fixed Liabilities:
Capital 4095 5348 1253 30.60
Reserves & Surplus 40228 46758 6530 16.23
Deposits & Other A/C’s 306258 312678 6420 2.10
Borrowings 108218 120676 12458 11.51
Total Fixed Liabilities 458799 485460 26661 5.81
Total Liabilities 476809 504724 27915 5.85
3.1.2.2 Table Showing Comparative Balance Sheet as on 2005-06 & 2006-07:
34
Decrease Increase/
Decrease
Assets:
Current Assets:
Cash on Hand & Bank 80451 77813 -2638 -3.28
Investments 110536 108374 -2162 -1.95
Loans & Advances 304071 324296 20225 6.65
Interest Receivable 9736 8985 -751 -7.71
Bills Receivable 683 436 -247 -36.16
Branch Adjustments - - - -
Other Assets 1317 4321 3004 228.09
Fixed Assets 732 709 -23 -3.14
Total Assets 507526 524934 17408 3.43

Decrease Increase/
35
Decrease
Liabilities:
Bills Payable 683 436 -247 -36.16
Branch Adjustments 22 43 21 95.45
Overdue Interest Reserve 4292 4292 - -
Interest Payable 6153 6784 631 10.25
ACSTI 167 239 72 43.11
Fixed Liabilities:
Capital 5348 24794 19446 363.61
Borrowings 120676 87823 -32853 -27.22
36
Decrease Increase/
Decrease
Assets:
Current Assets:
Cash on Hand & Bank 77813 99730 21917 28.17
Investments 108374 145851 37477 34.58
Loans & Advances 324296 333626 9330 2.688
Interest Receivable 8985 6636 -2349 -26.14
Bills Receivable 436 336 -100 -22.94
Other Assets 4321 2141 -2180 50.45
Fixed Assets 709 707 -2 -0.28
Total Assets 524934 589031 64097 12.21

Decrease Increase/
37
Decrease
Liabilities:
Bills Payable 436 336 -100 -22.93
Branch Adjustments 43 - -43 -100
ACSTI 239 242 3 1.25
Total Current Liabilities 31993 24548 -7445 -23.27
Fixed Liabilities:
Capital 24794 44375 19581 78.97
Borrowings 87823 60840 -26983 -30.72
38
Decrease Increase/
Decrease
Assets:
Current Assets:
Cash on Hand & Bank 99730 19789 -79941 -80.16
Money at Call &Short - 169500 169500 -

Notice
145851 164657 18806 12.89
Investments
333626 329601 -4025 -0.12
Loans & Advances
6636 9500 2864 43.16
Interest Receivable
336 328 -8 -2.38
Bills Receivable
4 - -4 -100
Branch Adjustments
2141 2706 565 26.39
Other Assets
Fixed Assets 707 703 -4 -0.56
Total Assets 589031 696784 107753 18.29

Decrease Increase/
Decrease
39
Liabilities:
Bills Payable 336 328 -8 2.38
ACSTI 242 - -242 -100
Fixed Liabilities:
Capital 44375 63509 19134 43.12
Borrowings 60840 83059 22219 36.52
INTERPRETATION:
The percentage of total assets was 5.85 in 2004-05 to 2005-06.It has gone up to 18.29
in 2007-08 to 2008-09, but the next year also the percentage was not reach that level.
40
Similarly the percentage of total liabilities(capital) also gone up to 5.85 in 2004-05 to
2005-06 , 18.02 in 2007-08 to 2008-09.Thus the proportion of asset as increased by a
higher percentage about (18.29) as compared to increase in the proportion of liabilities
of the same percentage.
3.1.3 COMMON SIZE BALANCE SHEET
3.1.3.1 Table showing Common Size Balance Sheet as on 2004-05:
41
Particulars 2004-05
Assets:
Current Assets:
Cash on Hand & Bank 13.43
Money at Call & Short Notice -
Investments 25.22
Loans & Advances 0.90
Interest Receivable 1.92
Bills Receivable 0.10
Branch Adjustments 0.02
Other Assets 0.25
Total Current Assets 99.84
Fixed Assets 0.15
Total Assets 100
Liabilities:
Bills Payable 0.10
42
Branch Adjustments -
Overdue Interest Reserve 0.77
Interest Payable 1.70
ACSTI 0.03
Other Liabilities 1.15
Total Current Liabilities 3.75
Fixed Liabilities:
Capital 0.85
Reserves & Surplus 8.39
Deposits & Other A/C’s 63.89
Borrowings 22.58
Total Fixed Liabilities 95.71
Total Liabilities 100
Particulars 2005-06
Assets:
Current Assets:
43
Investments 21.78
Other Assets 0.26
Fixed Assets 0.14
Total Assets 100
Liabilities:
Bills Payable 0.13
44
ACSTI 0.03
Fixed Liabilities:
Capital 1.05
Borrowings 23.78
Particulars 2006-07
Assets:
Current Assets:
45
Investments 20.64
Other Assets 0.82
Fixed Assets 0.13
Total Assets 100
Liabilities:
Bills Payable 0.08
ACSTI 0.04
46
Fixed Liabilities:
Capital 4.72
Borrowings 16.73
Particulars 2007-08
Assets:
Current Assets:
Investments 24.76
47
Other Assets 0.36
Fixed Assets 0.12
Total Assets 100
Liabilities:
Bills Payable 0.06
ACSTI 0.04
Fixed Liabilities:
48
Capital 7.53
Borrowings 10.33
Particulars 2008-09
Assets:
Current Assets:
Money at Call & Short Notice 24.33
Investments 23.63
49
Other Assets 0.39
Fixed Assets 0.10
Total Assets 100
Particulars 2008-09
Liabilities:
Bills Payable 0.05
ACSTI -
Fixed Liabilities:
Capital 9.11
50
Borrowings 11.92
INTERPRETATION:
The percentage of total assets was 3.25 in 2004-05. It has gone up to in 6.46 in 2006-
07. But the next year also the percentage was not reach that level. Similarly the
percentage of total liabilities (including capital) also gone up to 1.18 in the year 2008-09
and 2.57 in 2005-06. Thus the proportion of asset as increased by a higher percentage
about (1.56) as compared to increase in the proportion of liabilities.
51
3.1.4 RATIO ANALYSIS
CURRENT RATIO:
3.1.4.1 TABLE SHOWING CURRENT RATIO:
YEAR CURRENT CURRENT RATIO

ASSETS LIABILITIES
2004-05 478511 428637 1.12:1
2005-06 506794 448137 1.13:1
2006-07 524225 441592 1.19:1
2007-08 588320 480226 1.23:1
2008-09 696081 566608 1.23:1
3.1.4.1 CHART SHOWING CURRENT RATIO:
52
100%
90%
80%
70%
60%
50%
40% 2008-09
2007-08
30% 2006-07
20% 2005-06 LIQUID
10% 2004-05
0%
SE
TS IES
A S ILIT
T B
EN LIA
RR NT
CU RRE
CU
RATIO:
3.1.4.2 TABLE SHOWING LIQUID RATIO:
YEAR LIQUID ASSETS LIQUID RATIO

LIABILITIES
2004-05 478511 428637 1.12:1
2005-06 506794 448137 1.13:1
2006-07 524225 441592 1.19:1
2007-08 588320 480226 1.23:1
2008-09 696081 566608 1.23:1
3.1.4.2 CHART SHOWING LIQUID RATIO:
53
100%
90%
80%
70%
60% 2008-09
2007-08
50%
2006-07
40% 2005-06
2004-05
30%
20%
10%
0%
LIQUID ASSETS LIQUID LIABILITIES
FIXED ASSETS RATIO:
3.1.4.3 TABLE SHOWING FIXED ASSETS RATIO:
YEAR TOTAL NET FIXED RATIO

TURNOVER ASSETS
2004-05 35996 719 50.06
2005-06 36308 732 49.60
2006-07 42436 709 59.85
2007-08 38637 707 54.65
2008-09 46549 703 66.21
3.1.4.3 CHART SHOWING FIXED ASSETS RATIO:
54
100%
90%
80%
70%
60% 2008-09
2007-08
50%
2006-07
40% 2005-06
2004-05
30%
20%
10%
0%
TOTAL TURNOVER NET FIXED ASSETS
CAPITAL GEARING RATIO:
3.1.4.4 TABLE SHOWING CAPITAL GEARING RATIO:
YEAR LONG TERM CAPITAL RATIO

FUNDS+DEBENTURES
2004-05 108218 4095 26.42
2005-06 120676 5348 22.56
2006-07 87823 24794 3.54
2007-08 60840 44375 1.37
2008-09 83059 63509 1.30
3.1.4.4 CHART SHOWING CAPITAL GEARING RATIO:
55
100%
90%
80%
70%
60% 2008-09
2007-08
50%
2006-07
40% 2005-06
2004-05
30%
20%
10%
0%
L.TERM FUNDS+DEB CAPITAL
4.1 FINDINGS
 The percentage of total assets was 5.88 in 2004-05. It has come down to 3.43 in
2005-06. But the next year the percentage was reached to a high level of
comparative statement in the upcoming years according to the interpretation.
 The percentage of total liabilities was 5.85 in 2004-05. It has come down to 3.57
in the year 2005-06. But the percentage was reached to a high level of
comparative statement in the upcoming years according to the interpretation.
 The percentage of total assets was 2.19 in 2005-06. It ha gone upto 5.68 in
2004-05 in the level of common size statement.
 Similarly the percentage of total liabilities (including capital) also gone up to 2.05
in 2005-06 and 4.65 in 2007-08.Thus the proportion of asset as increased by a
higher percentage about (2.60) that the level of common size statement.
56
 The current ratio has experienced a fluctuating trend throughout study period.
The ratio of every year is not satisfied with the current ratio level.
 The ratio of the year 2004-05 and 2005-06 was not satisfied in quick ratio
standard norms.2006-07,2007-08,2008-09 satisfied the quick ratio standard
norms 1:1.
 The ratio of the year 2006-07 was is not satisfied with fixed assets ratio standard
norms. The years 2004-05 and 2005-06 are satisfied with the fixed assets
standard norms 1:1.
4.2 SUGGESTIONS
 The current ratio should be 2:1 and above, thus the firm is able o meet its current
liabilities in time.
 The absolute liquidity ratio should be kept the standard norm of 1:2. The
inventory conversation period should be kept in an effective manner.
 The debtor’s collection period should be collected in an effective way.
 The analysis of current ratio, quick ratio and the absolute liquid ratio indicate the
in sufficiency of the concern. It should take care for providing sufficient
requirements for the concern.
 To attract the customers the bank should introduce new policies.
57
 To satisfy the customers the bank should implement interest and loans to them.
4.3 CONCLUSION
The project entitled “A STUDY ON FINANCIAL STATEMENT ANALYSIS IN THE

TAMIL NADU STATE APE CO-OPEATIVE BANK LTD” gave the researcher a deep
knowledge of a financial performance and overall financial position of the TNSC Bank.
This study aimed at analyzing the ratios if TNSC Bank balance sheet for the
past five years in financial performance. The analysis of the data provided the
conclusion that there was a fluctuating trend exists in the growth of financial
performance components.
58
REFERENCES
BOOKS:
Pandey.I.M - “ Financial Management”, vikas publishing house pvt ltd, New

Delhi,1993.
Financial Management – Dr.S.N.Maheshwari.
WEBSITES:
www.tnscbank.com
59
www.wikipedia.com
www.google.com
The Tamil Nadu State Apex Co-operative Bank Ltd
PROFIT & LOSS A/C FOR THE YEAR ENDING 2004-05
EXPENDITURE AMOUNT INCOME AMOUNT

(IN (IN
LAKHS) LAKHS)
TO INTEREST ON DEPOSITS & 22442 BY INTEREST,DISCOUNT & 35096
BORROWINGS DIVIDEND
TO SALARIES & ALLOWANCES 2535 BY COMMISSION, 96
EXCHANGE,BROKERAGE
TO RENT,RATES & TAXES 201 BY OTHER RECEIPTS 804
TO LAW CHARGES 1
TO POSTAGE ,TELEGRAM & 8
TELEPHONE CHARGES
60
TO AUDITOR’S FEES 13
TO DEPRECIATION & REPAIRS 536
TO PROPERTY
TO PRINTING & STATIONERY 53
CHARGES
TO OTHER EXPENDITURE 730
TO PROVISIONS & RESERVES 6939
MADE
TO BALANCE OF PROFIT 2538
35996 35996
BALANCE SHEET AS ON 2004-05
LIABILITIES AMOUNT ASSETS AMOUNT
(IN (IN
LAKHS) LAKHS)
CAPITAL 4095 CASH ON HAND & BANK 64377
RESERVES & SURPLUS 40228 INVESTMENTS 120910
DEPOSITS & OTHER A/C’S 306258 LOANS & ADVANCES 282330
BORROWINGS 108218 INTEREST RECEIVABLE 9199
BILLS PAYABLE 471 BILLS RECEIVABLE 471
OVERDUE INTEREST RESERVE 3686 BRANCH ADJUSTMENTS 117
INTEREST PAYABLE 8162 FIXED ASSETS 719
ACSTI 163 OTHER ASSETS 1224
OTHER LIABLITIES 5528
PROFIT & LOSS A/C 2538
61
479347 479347
(IN (IN
LAKHS) LAKHS)
BORROWINGS DIVIDEND
EXCHANGE,BROKERAGE
TO LAW CHARGES 2
TELEPHONE CHARGES
TO PROPERTY
CHARGES
62
MADE
36308 36308
(IN (IN
LAKHS) LAKHS)
BRANCH ADJUSTMENTS 22 FIXED ASSETS 732
OVERDUE INTEREST RESERVE 4292 OTHER ASSETS 1317
INTEREST PAYABLE 6153
ACSTI 167
507526 507526
63
(IN (IN
LAKHS) LAKHS)
BORROWINGS DIVIDEND
EXCHANGE,BROKERAGE
TO LAW CHARGES 1
TELEPHONE CHARGES
TO PROPERTY
CHARGES
MADE
TO PROVISION FOR INCOM E 2880
TAX
42436 42436
64
(IN (IN
LAKHS) LAKHS)
BRANCH ADJUSTMENTS 43 FIXED ASSETS 709
OVERDUE INTEREST RESERVE 4292 OTHER ASSETS 4321
INTEREST PAYABLE 6784
ACSTI 239
524934 524934
65
(IN (IN
LAKHS) LAKHS)
BORROWINGS DIVIDEND
EXCHANGE,BROKERAGE
TO LAW CHARGES 1
TELEPHONE CHARGES
TO PROPERTY
CHARGES
MADE
TO PROVISION FOR INCOME 825
TAX
38637 38637
66
(IN (IN
LAKHS) LAKHS)
OVERDUE INTEREST RESERVE 4292 BRANCH ADJUSTMENTS 4
INTEREST PAYABLE 8926 FIXED ASSETS 707
ACSTI 242 OTHER ASSETS 2141
589031 589031
67
(IN (IN
LAKHS) LAKHS)
TO INTEREST ON DEPOSITS & 36810 BY INTEREST ON ADVANCES 23155
BORROWINGS
TO SALARIES & ALLOWANCES 3843 BY INCOME FROM INVESTMENTS 20198
TO RENT,RATES & TAXES 271 BY COMMISSION, EXCHANGE & 141
BROKERAGE
TO LAW CHARGES 2 BY RENT ON SAFE DEPOSIT 159
LOCKERS
TO POSTAGE ,TELEGRAM & 6 BY PROFIT ON SALE OF 18
TELEPHONE CHARGES SECURITIES
TO TRAVELLING AND 17 BY OTHER INCOME 62
CONVEYANCE
TO AUDITOR’S FEES 13 BY INTEREST RECEIVED 1479
TO REPAIRS AND MAINTENANCE 48 BY BAD & DOUBTFUL DEBTS 1
TO DEPRECIATION & ON FIXED 101 BY PREVIOUS YEAR INCOME A/C 1355
ASSETS IN CUR.YEAR
TO AMORTISATION ON 197
SECURITIES
CHARGES
TO ADVERTISEMENT 27
TO ACSTI EXPENDITURE 31
TO SUNDRY EXPENSES 423
TO PROVISIONS & 372
CONTINGENCIES
TO PROVISION FOR INCOME TAX 989
46568 46568
68
(IN (IN
LAKHS) LAKHS)
RESERVES & SURPLUS 58962 MONEY AT CALL & SHORT 169500
NOTICE
DEPOSITS & OTHER A/C’S 442916 INVESTMENTS 164657
BORROWINGS 83059 LOANS & ADVANCES 329601
BILLS PAYABLE 328 INTEREST RECEIVABLE 9500
BRANCH ADJUSTMENTS 39 BILLS RECEIVABLE 328
OVERDUE INTEREST RESERVE 4292 FIXED ASSETS 703
INTEREST PAYABLE 9272 OTHER ASSETS 2706
696784 696784
69

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1.

INTRODUCTION OF THE STUDY

MEANING AND IMPORTANCE OF FINANCE

Finance is the lifeblood of an enterprise. Finance is concerned with financial

IMPORTANCE & FUNCTIONS OF FINANCIAL MANAGEMENT:

IMPORTANCE OF FINANCIAL MANAGEMENT:

1. Financial management covers a very large spectrum of activities of a business.

FUNCTIONS OF FINANCIAL MANAGEMENT:

The function of financial management includes the investment function, financing

It is concerned with capital budjeting and current asset management. Capital

It refers to raising necessary funds for backing up investment function. It

Dividend payment is necessary for shareholders except a return on their share

 Long-term Co-operative credit institutions

The Co-operative credit institutions functioning under short-term credit

It was subsequently changed into a District Central Co-operative Bank during

TNSC Bank is a member of the Deposit Insurance and Credit Guarantee

Periodical inspection and supervision are done by NABARD as per RBI

History of the TNSC Bank:

Old in Tradition and Young in Outlook:

Leader of Co-operative Credit Movement:

TNSC Bank was the18th Co-operative Society to be registered in the erstwhile

Initial Authorized Share Capital:

Best Performance Awards:

1985-86: THIRD PRIZE for overall performance.

1986-87: SECOND PRIZE for overall performance.

1987-88: THIRD PRIZE for overall performance.

1988-89: SECOND PRIZE for overall performance.

1989-90: SPECIAL AWARD for the outstanding performance under

1990-91: SECOND PRIZE for overall performance.

1991-92: FIRST PRIZE for overall performance.

1992-93: SPECIAL AWARD for the outstanding performance under

Social Goals Development.

Operational Efficiency.

1995-96: FIRST PRIZE for overall performance.

1996-97: FIRST PRIZE for overall performance.

The NAFSCOB has selected our Bank and awarded FIRST PRIZE for Best

Banking services include transactional services, such as verification of account details,

Some types of financial institution, such as building societies and credit unions,

 A branch, banking centre or financial centre is a retail location where a bank or

Currently, India has 96 scheduled commercial banks (SCBs) - 27 public sector

 To analyze the overall financial performance of TNSC Bank.

 To interpret the profitability of the TNSC Bank.

 To measure the managerial efficiency of the TNSC Bank.

 To measure the utilization of various assets during the period.

 To measure the short-term and long-term solvency of the firm.

 FSA (Financial Statement Analysis) is generally an outdated (because of

R.SWAMINATHAN(1997) in his study made an attempt to analyze the report.

JA.R.S.RAJESH(1998) in his study made an attempt to analyze the financial

Steven M. Fazzari and Bruce c. Peterson (1993) Titled Financial Performance:

The data collections classified into two types are

 Bank’s annual report

 Bank’s website

TOOLS USED FOR DATA ANALYSIS

 Comparitive Balance Sheet

 Common Size Balance Sheet

 Charts & Diagrams

Tools and Techniques of Financial Statement Analysis:

 Horizontal and Vertical Analysis

Horizontal Analysis or Trend Analysis: