The co-operative movement was started in India in 1904 with the object of providing finance to agriculturists for productive purposes at low rates of interest and thereby relieving them (i.e., the agriculturist) from the clutches of the money lenders. A large number of agricultural credit societies were setup in the villages under the Co-operative Societies Act of 1904. The Co-operative Societies Act of 1912 contributed to the establishment of Central Co-operative banks and the state co-operative banks to provide refinance to primary credit societies which could not mobilize funds by their own efforts. By facilitating the formation of central co-operative banks and the state co-operative banks, the Co-operative Societies Act of 1912 gave stimulus to the co-operative credit movement in India. The co-operative credit movement made good progress during and after the First World War of 1914-1918. But during the Great Depression of 1929-1933, it received a serious setback. With the outbreak of the Second World War of 1939-45, the co-operative credit movement made considerable progress once again. The number of co-operative credit institutions had increased, their membership had gone up and their deposits and advances also had increased considerably. Since then, the progress has been maintained thanks to the keen interest shown by the Reserve Bank of India in the co-operation credit movement.
The Indian co-operative banking system is a three-tier system. It consists of three sections, viz., (1) Primary Credit Societies at the base, (2) Central Co-operative Banks in the middle and (3) State Co-operative Banks or the Apex Banks at the top.
Central co-operative banks are federations of primary credit societies operating in a specified area. Generally, they are located in the district headquarters or some prominent towns of the district. They are organized on the basis of limited liability.
Though, in theory, central co-operative banks are supposed to be federations of primary credit societies, in practice, the membership of central co-operative banks may be confined only to the primary credit societies or open to primary credit societies as well as individuals.
If the membership of central co-operative banks is confined to only primary credit societies, they are called pure central co-operative banks or co-operative banking unions. Pure central co-operative banks are found in the states of Kerala, Maharashtra, Orissa, etc. on the other hand, if the membership of central co-operative banks is open to primary credit societies as well as some individuals, they are called mixed central co-operative banks. Mixed central co-operative banks are found in the states of Tamil Nadu, Andhra Pradesh, Karnataka, Assam etc.
The Bijapur District Central Co-operative Bank Ltd. is functioning in the Mumbai, Karnataka area of Bijapur from 1919. The district has 644 villages with five talukas. The main aim of the bank is to provide financial assistance to the Agriculture and allied activities. It has opened 28 branches in the area to serve all the people. The present share capital of the bank is around 18 crores and the accumulated reserves amounted to Rs.3.35 crores. The analysis and interpretation of the financial statements assumes significance.
Financial statements may refer to any formal and original statements which disclose financial information relating to any business concern. The financial data summarized in the form of financial statements are of outstanding significance to the various parties interested in and concerned with the operation and the financial growth of the business executives. In fact, these financial statements render a Yeoman’s service to owners, suppliers, government agencies, employees, customers and even common public in their respective field of interest. It may however be observed that mere presentation of these statements does not serve the purpose of none of the aforesaid parties in any way. The significance of these statements lies not in their preparation but in their analysis and interpretation. Therefore, analysis and interpretation of financial statement is essential so as to show the full disclosure of profitability and financial soundness.
According to Myers “Financial statement analysis is a study of relationships among various financial factors in a business as disclosed by a single set of statement and a study of the trends of there factor as shown in a series of statements”. A number of tools, techniques and methods are available for financial analysis. The following are the important tools and techniques for financial analysis.
Comparative financial and operating statements.
Ratio Analysis.
Fund flow analysis.
Cash flow analysis.
Trend analysis.
The Problem:
The Bijapur District Central Co-operative Bank Ltd. is functioning in the Mumbai, Karnataka area of Bijapur from 1919. The district has 644 villages with five talukas. The main aim of the bank is to provide financial assistance to the Agriculture and allied activities. It has opened 28 branches in the area to serve all the people. Inspite of many hardships in the co-operative sector, this bank has made considerable progress in terms of Advances and Profit. This bank has been named number one bank in the state in terms of profit from 1998-99 to 2001-02. The report on the financial position of the bank is very much essential for all sections of the society in general and management in particular. Hence, it is essential to measure and report the financial position, composition of assets and liabilities, ratio of debt and equity to the people concerned.
The Indian co-operative banking system is a three-tier system. It consists of three sections, viz., (1) Primary Credit Societies at the base, (2) Central Co-operative Banks in the middle and (3) State Co-operative Banks or the Apex Banks at the top.
Central co-operative banks are federations of primary credit societies operating in a specified area. Generally, they are located in the district headquarters or some prominent towns of the district. They are organized on the basis of limited liability.
Though, in theory, central co-operative banks are supposed to be federations of primary credit societies, in practice, the membership of central co-operative banks may be confined only to the primary credit societies or open to primary credit societies as well as individuals.
If the membership of central co-operative banks is confined to only primary credit societies, they are called pure central co-operative banks or co-operative banking unions. Pure central co-operative banks are found in the states of Kerala, Maharashtra, Orissa, etc. on the other hand, if the membership of central co-operative banks is open to primary credit societies as well as some individuals, they are called mixed central co-operative banks. Mixed central co-operative banks are found in the states of Tamil Nadu, Andhra Pradesh, Karnataka, Assam etc.
The Bijapur District Central Co-operative Bank Ltd. is functioning in the Mumbai, Karnataka area of Bijapur from 1919. The district has 644 villages with five talukas. The main aim of the bank is to provide financial assistance to the Agriculture and allied activities. It has opened 28 branches in the area to serve all the people. The present share capital of the bank is around 18 crores and the accumulated reserves amounted to Rs.3.35 crores. The analysis and interpretation of the financial statements assumes significance.
Financial statements may refer to any formal and original statements which disclose financial information relating to any business concern. The financial data summarized in the form of financial statements are of outstanding significance to the various parties interested in and concerned with the operation and the financial growth of the business executives. In fact, these financial statements render a Yeoman’s service to owners, suppliers, government agencies, employees, customers and even common public in their respective field of interest. It may however be observed that mere presentation of these statements does not serve the purpose of none of the aforesaid parties in any way. The significance of these statements lies not in their preparation but in their analysis and interpretation. Therefore, analysis and interpretation of financial statement is essential so as to show the full disclosure of profitability and financial soundness.
According to Myers “Financial statement analysis is a study of relationships among various financial factors in a business as disclosed by a single set of statement and a study of the trends of there factor as shown in a series of statements”. A number of tools, techniques and methods are available for financial analysis. The following are the important tools and techniques for financial analysis.
Comparative financial and operating statements.
Ratio Analysis.
Fund flow analysis.
Cash flow analysis.
Trend analysis.
The Problem:
The Bijapur District Central Co-operative Bank Ltd. is functioning in the Mumbai, Karnataka area of Bijapur from 1919. The district has 644 villages with five talukas. The main aim of the bank is to provide financial assistance to the Agriculture and allied activities. It has opened 28 branches in the area to serve all the people. Inspite of many hardships in the co-operative sector, this bank has made considerable progress in terms of Advances and Profit. This bank has been named number one bank in the state in terms of profit from 1998-99 to 2001-02. The report on the financial position of the bank is very much essential for all sections of the society in general and management in particular. Hence, it is essential to measure and report the financial position, composition of assets and liabilities, ratio of debt and equity to the people concerned.
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