Article Analysis Example | Topics and Well Written Essays - 500 words - 3

Analysis - Article Example To argue this point Hardin develops the thesis of the tragedy of the commons as being borne out of a system that treats the public domain as something that is self-correcting to stasis, and that man works in accordance with what seems to be selfish interests but are in fact actions that in the end work toward the good of all. The tragedy of the commons is the idea that society and people seem blindsided by an appeal to the commons as something that is to be had by all, even when the commons that is referred to here, whether food, or land, or the ability of the environment to take in pollution and waste, are finite things. Hardin essentially says that in fact the individual cannot be trusted to work for the common good, and that society, hardwired as it is to treat the commons as something that is unlimited in supply, is in effect perpetually in a course to deplete the commons and to wreak havoc on the very same things that sustain it. Hardin essentially says that in a world of explod ing populations there is less and less room for the notion of the commons as something that can be exploited and used without restraint or conditions. This outdated notion worked when the populations were low and the actions of men individually and collectively had little effect on the quality and availability of those common things, in the same way that adding a pinch of salt to a glass of water would not alter the taste of the water substantially, but adding more and more salt would eventually change the character of the water and its taste fundamentally. This is the same with the commons and the way the commons has been conceived and abused by society. This old notion of the inexhaustible nature of the commons must go, according to Hardin. Already he says, there have been curbs set in place with regard to the land and the tilling and grazing of the land; in the disposal of

Henrik Isbens A Dolls House Essay -- A Dolls House Essays

In many literary works, there are characters in which portray both similarities and differences. In the Play "A Doll's House," by Henrik Ibsen, two of the characters have many oppositions and congruencies. These characters go by the names of Nora Helmer and Mrs. Linde. Ibsen characterizes these women by describing their comparable and contrasting personalities. He does this by describing their financial situations as well as their family lives. He describes these women, as opposites while in fact there are some distinct similarities. They share many of the same values and goals. Both Nora and Mrs. Linde are strong women with a weak exterior. Nora is described as a fragile woman that has been spoiled throughout her lifetime. The men in her life, her father and husband, have taken the roll of the authority figures. Nora is accustomed to relying on men to support and pamper her. She never has a care in the world. Though she appears to be content, in her heart she is not happy. She feels the urge to be set free to live her life the way she wants to, not they way her male authorities tell her to. A childhood friend of Nora's, Mrs. Linde, shares many of the same qualities. Both women have been having recent financial problems. Nora even mentions that she had to find a job as well as Mrs. Linde. She states, "Yes; odds and ends, needlework, crochet-work, embroidery, and that kind of thing (Ibsen 360)." She says this as if she is disgusted by the fact that she must work to...

An Insight into Michael Collin’s Life

In 1916 during the Easter Rising his role was relatively low key, but y 1922 he ultimately gave his life in the Civil War for what he believed in. Michael Collins took part in the Easter Rising in Dublin. He fought alongside others in the General Post Office, and he was singled out as the most active and efficient officer in the place' by Despond Fitzgerald, who had been put in charge of the General Post Office canteen. L This would suggest that Collins always had leadership qualities and a passion for Ireland's Freedom, which would play such an important part in later events such as the treaty negotiations of 1922.It would also imply that he had an important part In the Rising. However, Collins only played a relatively low key part, which was shown because he wasn't one of the people who were court-martingale. This factual evidence contradicts the source, which shows even though this source is from a witness of the Rising and would have seen first-hand Collins' part, it automaticall y has a low weight of argument because it's provenance. The source is from one of his close associates who were on the same side as Collins in the Rising and therefore it will be in Collins favor towards his significance in the Rising.Also, Despond Fitzgerald isn't the right person to edge his part in the rising because he was in charge of the Canteen, so only really saw Collins during meal times, which isn't when he would be making decisions or under pressure from the British forces closing in. Despond Ryan, however, fought alongside Collins in the General post Office, paints the image of Collins very different to Fitzgerald. He said that Collins ‘sat in a corner, a look of horror in his eyes, a pallor spreading across his face†¦ Straining his control to breaking point'2 this suggests that he wasn't efficient or significant and broke under the pressure of the Rising.Therefore, this indicates the Rising could have happened without Michael Collins. Both these sources were dated to 1 916 which makes the source reliable because it's gives a good indication of the feelings towards Michael Collins at the time of the General Post Office takeover. However, Despond Ryan was Parse's literary executor, and as Pears was executed after the rising for being one of its leaders, Ryan resented Collins for receiving limelight from the Rising, and not being executed like his close associate. Consequently, he is likely to describe Collins in a critical and negative light.The aftermath of the Rising resulted in Collins being sent to Foregone and whilst there he was one of the organizers of a program of protest and non- cooperation with authorities. He saw it as an opportunity to improve his guerrilla tactics and spread revolutionary gospel until it was emptied in December 1916. During his time in Foregone Collins made sure that the other refugees did NT give information about themselves up, as he knew that it was possible to beat them by wearing them down. He wrote to a friend ‘For a time they'll raise war – in the end they'll despair† 3.Collins knew the British would ire of trying to get information, and he saw it as an opportunity for networking with physical-force republicans from all over the country and improving his guerrilla tactics. The provenance of this source is from a letter. Collins wrote to a friend while in Foregone, so it gives a clear insight into his intentions which makes this source accurate. However, because it is from himself he may think he is making more of an impact than he actually is. Yet, this is unlikely because they all got released quickly from the camp which would back up this letter and give it a good weight of argument.The canteen staff in Foregone described Collins as ‘highly respected' and when they took problems to him he ‘always listened logically. This helps us understand Michael Collins' short term significance because he learnt from the military blunders made; such as the sei zure of indefensible and very vulnerable positions like SST Stephens Greene and filled the vacuum made by the executions of the leaders of the Rising. Likewise, Foregone would have been different without Collins as the internees wouldn't have been able to hold out and the Irish wouldn't have developed such a fighting force.It's a useful source because they were employed to work in the Foregone canteens so they are indifferent to Collins, which gives this source a high weight of argument which can be generalized to how others must have seen him who weren't closely involved with him. Then again, as it is written so long after, it can be doubted On the contrary, the source was wrote over half a century later, so it's questionable how far someone can precisely remember what the canteen staff thought about Collins. Michael Collins had many responsibilities after leaving Foregone.He was appointed Finance Minister and is described as ‘the unlikely Finance Minister who proved himself an administrator par excellence. ‘6 Collins produced a Finance Ministry that was able to organize a large bond issue in the form of a â€Å"National Loan† to fund the new Irish Republic which was placed in bank accounts of the trustees. This proves how exceptionally significant he was and what a great asset to Ireland he was. The British declared the finances Collins acquired as illegal but Collins carried the money through successfully even though he held down four major positions.The other three being Adjutant- General, Director Of Intelligence and the Director Of Organization. ) FINANCE MINSTER SOURCE He also organized jail breaks because ‘he would obtain information from a wide variety of people' (Lick O'Connor). Lick O'Connor was he is a well- known intellectual figure in contemporary Irish affairs who was born after the death of Michael Collins which makes him a secondary source, his great- grandfather was Matt Harris, Land Leaguer, Fabian, and Irish Parliam entary party Member of Parliament, which means he grew up being surrounded by animal views to Michael Collins and be more likely to support him.Also without Collins, the finance effort would have been a lot weaker and there would have been less information known by Ireland to aid themselves in jail breaks ACT. Collins was a man of ‘charismatic nature' and his ‘reputation for decisiveness' made people want to seek his assistance and advice, which meant he was significant in the sense that he had leadership qualities which helped the Sin Feint, for example in elections.This was said by Winston Churchill which gives it a high weight of argument because he was an enemy f Collins so if he was complimenting Collins then it is more valid as information as he is likely to oppose him. In the Anglo- Irish war, Michael Collins played the most important role in this struggle. As director of intelligence of the AIR he crippled the British intelligence system in Ireland and replaced i t with an effective Irish network. At the same time he performed his other responsibilities.He was significant because he maximized efficiency of and minimized losses which made Ireland able to withstand the larger British forces. For example ‘ the British made desirously high estimates of their enemy' because of Collins tactics they thought that Ireland had a lot more man power than they really had, also, republican victories had widespread support from the Irish, including every level of society, and reaching deep into the British administration in Ireland.Without Collins the Irish Revolution would have been less effective without his skill in guerrilla warfare. The British government perceived him as a murdering criminal mastermind and thought about placing ‘E 10,000' on his head if he was ‘dead or alive. This was discussed with Winston Churchill but ejected making Collins both Britain's most wanted man and a Hero to Ireland. It seemed to be futile because he wa s anonymous to the British authorities and Collins used this to his advantage to unease his enemies, which would suggest why the price would have been so high.Mark Sutures wrote ‘l wonder how it is that the archbishop sees Collins apparently without difficulty and our intelligence fails' These sources all give a good insight into how exasperated the British became with the notorious Michael Collins, and even though they desperately tried to capture him, they just couldn't. These al are primary sources with a high weight of argument because they were on the opposing side Of the Anglo- Irish war so they wouldn't want to outline their failures to capture him, and/or compliment him in the process.ANALYSIS When the war ended Collins was sent to go to the treaty negotiations. He went out of loyalty to De Valier, even though he was opposed to being sent to London as part of the Treaty delegation. ‘To me the task is a loathsome one. ‘8 This source gives a good insight into how Collins felt at the time. Also Collins negotiation skills and political knowledge was small compared to De Baler's ND it meant giving up his shrouded identity.Nevertheless, David Lloyd George said that Collins ‘did not have De Baler's slippery political cunning' but he didn't doubt he was ‘the head and front of the movement;9 this source is important and has a high weight of argument because someone opposing him recognized his significance. Lloyd George was very unfavorable of Collins at this time as he was the British prime minister. But then again, why would the British want to negotiate with Collins? They thought he was a murderer, so they must have realized he would be more impartial than De Valier in negotiations.When, Collins signed the treaty saying ‘I may have signed my own death warrant' because he knew that many people wouldn't agree with it but he did it for the long run good of Ireland. Britain wasn't willing to give a better deal than that and he signed it under treat of ‘immediate and terrible war' if it wasn't signed. This shows the British had the dominant position at the time of the signing, which suggests it could have been forced. However, he had still achieved a lot because Ireland got half of her freedom back with is half more than she already had, and he was repaper to sacrifice himself for it.

Reference To State Bank Of Mysore Finance Essay - Free Essay Example

Sample details Pages: 16 Words: 4948 Downloads: 9 Date added: 2017/06/26 Category Finance Essay Type Argumentative essay Did you like this example? A bank is a financial institution and a financial intermediary that accepts deposits and channels those deposits into lending activities, either directly or through capital markets. A bank connects customers with capital deficits to customers with capital surpluses. Due to their critical status within the financial system and the economy generally, banks are highly regulated in most countries. Don’t waste time! Our writers will create an original "Reference To State Bank Of Mysore Finance Essay" essay for you Create order Most banks operate under a system known as fractional reserve banking where they hold only a small reserve of the funds deposited and lend out the rest for profit. They are generally subject to minimum capital requirements which are based on an international set of capital standards, known as the Basel Accords. The oldest bank still in existence is Monte dei Paschi di Siena, headquartered in Siena, Italy, which has been operating continuously since 1472. The word bank was borrowed in Middle English from Middle French banque, from Old Italian banca, from Old High German banc, bank bench, counter. Benches were used as desks or exchange counters during the Renaissance by Florentine bankers, who used to make their transactions atop desks covered by green tablecloths. One of the oldest items found showing money-changing activity is a silver Greek drachm coin from ancient Hellenic colony Trapezus on the Black Sea, modern Trabzon (350-325 BC) presented in the British Museum in Lond on. The coin shows a bankers table (trapeza) laden with coins, a pun on the name of the city. In fact, even today in Modern Greek the word Trapeza means both a table and a bank. HISTORY The first banks were the merchants of the ancient world that made loans to farmers and traders that carried goods between cities. The first records of such activity, dates back to around 2000 BC in Assyria and Babylonia. Later, in ancient Greece and during the Roman Empire, lenders who were based in temples made loans but also added two important innovations: accepting deposits and changing money. During this period, there is similar evidence of the independent development of lending of money in ancient China and separately in ancient India. Banking, in the modern sense of the word, can be traced to medieval and early Renaissance Italy, to the rich cities in the north such as Florence, Venice and Genoa. The Bardi and Peruzzi families dominated banking in 14th century Florence, establishing branches in many other parts of Europe. Perhaps the most famous Italian bank was the Medici bank, established by Giovanni Medici in 1397. The development of banking spread through Europe an d a number of important innovations took place in Amsterdam during the Dutch Republic in the 16th century and in London in the 17th century. During the 20th century, developments in telecommunications and computing resulting in major changes to the way banks operated and allowed them to dramatically increase in size and geographic spread. The Late-2000s financial crisis saw significant number of bank failures, including some of the worlds largest banks, and much debate about bank regulation. In ancient India during the Maurya dynasty (321 to 185 BC), an instrument called adesha was in use, which was an order on a banker desiring him to pay the money of the note to a third person, which corresponds to the definition of a bill of exchange as we understand it today. During the Buddhist period, there was considerable use of these instruments. Merchants in large towns gave letters of credit to one another. BUSINESS MODEL A bank can generate revenue in a variety of different ways including interest, transaction fees and financial advice. The main method is via charging interest on the capital it lends out to customers. The bank profits from the differential between the level of interest it pays for deposits and other sources of funds, and the level of interest it charges in its lending activities. This difference is referred to as the spread between the cost of funds and the loan interest rate. Historically, profitability from lending activities has been cyclical and dependent on the needs and strengths of loan customers and the stage of the economic cycle. Fees and financial advice constitute a more stable revenue stream and banks have therefore placed more emphasis on these revenue lines to smooth their financial performance. In the past 20 years American banks have taken many measures to ensure that they remain profitable while responding to increasingly changing market conditions. First, t his includes the Gramm-Leach-Bliley Act, which allows banks again to merge with investment and insurance houses. Merging banking, investment, and insurance functions allows traditional banks to respond to increasing consumer demands for one-stop shopping by enabling cross-selling of products (which, the banks hope, will also increase profitability). Second, they have expanded the use of risk-based pricing from business lending to consumer lending, which means charging higher interest rates to those customers that are considered to be a higher credit risk and thus increased chance of default on loans. This helps to offset the losses from bad loans, lowers the price of loans to those who have better credit histories, and offers credit products to high risk customers who would otherwise be denied credit. Third, they have sought to increase the methods of payment processing available to the general public and business clients. These products include debit cards, prepaid cards, sma rt cards, and credit cards. They make it easier for consumers to conveniently make transactions and smooth their consumption over time (in some countries with underdeveloped financial systems, it is still common to deal strictly in cash, including carrying suitcases filled with cash to purchase a home). STANDARD ACTIVITIES Banks act as payment agents by conducting checking or current accounts for customers, paying check drawn by customers on the bank, and collecting checks deposited to customers current accounts. Banks also enable customer payments via other payment methods such as Automated Clearing House (ACH), Wire transfers or telegraphic transfer, EFTPOS, and automated teller machine (ATM). Banks borrow money by accepting funds deposited on current accounts, by accepting term deposits, and by issuing debt securities such as banknotes and bonds. Banks lend money by making advances to customers on current accounts, by making installment loans, and by investing in marketable debt securities and other forms of money lending. Banks provide almost all payment services, and a bank account is considered indispensable by most businesses, individuals and governments. Non-banks that provide payment services such as remittance companies are not normally considered an adequate substitute for having a b ank account. Banks borrow most funds from households and non-financial businesses, and lend most funds to households and non-financial businesses, but non-bank lenders provide a significant and in many cases adequate substitute for bank loans, and money market funds, cash management trusts and other non-bank financial institutions in many cases provide an adequate substitute to banks for lending savings too. RECENT DEVELOPMENT IN BANKING SECTOR Universal Banking: Universal banking refers to Financial Institution offering all types of financial services under one roof. Thus, for example, besides borrowing and lending for the long term, the development Financial Institutions will be able to borrow/lend for the short-term as well. Multiple delivery channels: Today the technology driven banks are finding various means to reduce costs and reach out to as many customers as possible spread over a diverse area. This has led to using multiple channels of delivery of their products. 1. ATM (Automatic Teller Machine): An ATM is basically a machine that can deliver cash to the customers on demand after authentication. However, nowadays we have ATMs that are used to vend different FMCG products also. An ATM does the basic function of a banks branch, i.e., delivering money on demand. Hence setting of newer branches is not required thereby significantly lowering infrastructure costs. Cost reduction is however possible only when these machines are used. In India, the average cash withdrawal per ATM per day has fallen from 100 last year to 70 this year. Though the number of ATMs since last year, it is not in sync with number of cards issued. Also, there are many dormant cardholders who do not use the ATMs and prefer the teller counters. In spite of these odds, Indian banks are increasing the number of ATMs at a feverish pace. These machines also hold the keys to future operational efficiency. 2. Net Banking: Net banking means carrying out banking transactions via the Internet. Thus the need for a branch is completely eliminated by technology. Also this can view his account details transaction history, order drafts, electronically make payments, transfer funds, check his account position and electronically communicate with the bank through the internet for which he may have wanted to visit the bank branch. Net banking helps a bank spread its reach to the entire world at a fraction of the cost. 3. Phone Banking: This means carrying out of banking transaction through the telephone. A customer can call up the banks helpline or phone banking number to conduct transaction like transfer of funds, making payments , checking of account balances, ordering cheques etc,. This also eliminates the customer of the need to visit the banks branch. 4. Mobile Banking: Banks can now help a customer conduct certain transactions through the Mobile phone with the help of technologies like WAP, SMS, etc., this helps a bank to combine the internet and leverage it to cut costs and at the same time provide its customer the convenience. Thus it can be seen that Tech savvy banks are tapping all the above alternative channels to cut costs improve customer satisfaction. TYPES OF BANKS RETAIL BANKING: Retail banking is one that deals directly with individuals and small businesses. BUSINESS BANKING: Business banking is one that provides services to mid market business. CORPORATE BANKING: Corporate banking is one that is directed at large business entities. PRIVATE BANKING: Private banking is one that provides wealth management services to high net worth individuals and families. INVESTMENT BANKING: Investment banking is one relating to activities on the financial markets. NON PROFIT ORGANISATIONS: These are the banks that are owned by the government and whose main objective is not to earn profit but help the society. ABOUT SUBJECT INTRODUCTION TO FINANCE Finance is the life blood of business. It is rightly termed as the science of money. Finance is very essential for the smooth running of the business. Finance controls the policies, activities and decisions of every business. DEFINITION: FINANCE is that business activity which is concerned with the organization and conversion of capital funds in meeting financial needs and overall objectives of a business enterprise -Wheeler Finance is one of the major elements, which activates the overall growth of the economy. Finance is the lifeblood of economic activity. A well knit financial system directly contributes to the growth of the economy. An efficient financial system calls for the effective performance of financial institutions, financial instruments and financial markets. FINANCE FUNCTION Finance function can be classified into 4 types. They are: Investment Decision One of the most important finance functions is to intelligently allocate capital to long term assets. This activity is also known as capital budgeting. It is important to allocate capital in those long term assets so as to get maximum yield in future. Following are the two aspects of investment decision Evaluation of new investment in terms of profitability Comparison of cut off rate against new investment and prevailing investment. Since the future is uncertain therefore there are difficulties in calculation of expected return. Along with uncertainty comes the risk factor which has to be taken into consideration. This risk factor plays a very significant role in calculating the expected return of the prospective investment. Therefore while considering investment proposal it is important to take into consideration both expected return and the risk involved. Investment decision not only involves allocating capital to long term assets but also involves decisions of using funds which are obtained by selling those assets which become less profitable and less productive. It wise decisions to decompose depreciated assets which are not adding value and utilize those funds in securing other beneficial assets. An opportunity cost of capital needs to be calculating while dissolving such assets. The correct cut off rate is calculated by using this opportunity cost of the required rate of return (RRR). Financial Decision Financial decision is yet another important function which a financial manger must perform. It is important to make wise decisions about when, where and how should a business acquire funds. Funds can be acquired through many ways and channels. Broadly speaking a correct ratio of an equity and debt has to be maintained. This mix of equity capital and debt is known as a firms capital structure. A firm tends to benefit most when the market value of a companys share maximizes this not only is a sign of growth for the firm but also maximizes shareholders wealth. On the other hand the use of debt affects the risk and return of a shareholder. It is more risky though it may increase the return on equity funds. A sound financial structure is said to be one which aims at maximizing shareholders return with minimum risk. In such a scenario the market value of the firm will maximize and hence an optimum capital structure would be achieved. Other than equity and debt there are several other too ls which are used in deciding a firm capital structure. Dividend Decision Earning profit or a positive return is a common aim of all the businesses. But the key function a financial manger performs in case of profitability is to decide whether to distribute all the profits to the shareholder or retain all the profits or distribute part of the profits to the shareholder and retain the other half in the business. Its the financial managers responsibility to decide a optimum dividend policy which maximizes the market value of the firm. Hence an optimum dividend payout ratio is calculated. It is a common practice to pay regular dividends in case of profitability. Another way is to issue bonus shares to existing shareholders. Liquidity Decision It is very important to maintain a liquidity position of a firm to avoid insolvency. Firms profitability, liquidity and risk all are associated with the investment in current assets. In order to maintain a tradeoff between profitability and liquidity it is important to invest sufficient funds in current assets. But since current assets do not earn anything for business therefore a proper calculation must be done before investing in current assets. Current assets should properly be valued and disposed of from time to time once they become non profitable. Currents assets must be used in times of liquidity problems and times of insolvency. FINANCIAL MANAGEMENT Meaning of Financial Management: Financial Management means planning, organizing, directing and controlling the financial activities such as procurement and utilization of funds of the enterprise. It means applying general management principles to financial resources of the enterprise. DEFINITION: Financial management is the operational activity of a business that is responsible for obtaining and effectively utilizing the funds necessary for efficient operation Joseph Massie Scope or Elements: Investment decisions includes investment in fixed assets (called as capital budgeting). Investments in current assets are also a part of investment decisions called as working capital decisions. Financial decisions They relate to the raising of finance from various resources which will depend upon decision on type of source, period of financing, cost of financing and the returns thereby. Dividend decision The finance manager has to take decision with regards to the net profit distribution. Net profits are generally divided into two: Dividend for shareholders- Dividend and the rate of it has to be decided. Retained profits- Amount of retained profits has to be finalized which will depend upon expansion and diversification plans of the enterprise. OBJECTIVES OF FIANANCIAL MANAGEMENT The financial management is generally concerned with procurement, allocation and control of financial resources of a concern. The objectives can be- To ensure regular and adequate supply of funds to the concern. To ensure adequate returns to the shareholders, this will depend upon the earning capacity, market price of the share and expectations of the shareholders. To ensure optimum funds utilization. Once the funds are procured, they should be utilized in maximum possible way at least cost. To ensure safety on investment, i.e., funds should be invested in safe ventures so that adequate rate of return can be achieved. To plan a sound capital structure-There should be sound and fair composition of capital so that a balance is maintained between debt and equity capital. FUNCTIONS OF FINANCIAL MANAGEMENT: Estimation of capital requirements: A finance manager has to make estimation with regards to capital requirements of the company. This will depend upon expected costs and profits and future programs and policies of a concern. Estimations have to be made in an adequate manner which increases earning capacity of enterprise. Determination of capital composition: Once the estimation has been made, the capital structure has to be decided. This involves short- term and long- term debt equity analysis. This will depend upon the proportion of equity capital a company is possessing and additional funds which have to be raised from outside parties. Choice of sources of funds: For additional funds to be procured, a company has many choices like- Issue of shares and debentures Loans to be taken from banks and financial institutions Public deposits to be drawn like in form of bonds. Choice of factor will depend on relative merits and demerits of each source and period of finan cing. Investment of funds: The finance manager has to decide to allocate funds into profitable ventures so that there is safety on investment and regular returns is possible. Disposal of surplus: The net profits decisions have to be made by the finance manager. This can be done in two ways: Dividend declaration It includes identifying the rate of dividends and other benefits like bonus. Retained profits The volume has to be decided which will depends upon expansion, innovational, diversification plans of the company. Management of cash: Finance manager has to make decisions with regards to cash management. Cash is required for many purposes like payment of wages and salaries, payment of electricity and water bills, payment to creditors, meeting current liabilities, maintenance of enough stock, purchase of raw materials, etc. Financial controls: The finance manager has not only to plan, procure and utilize the funds but he also has to exercise control over finance s. This can be done through many techniques like ratio analysis, financial forecasting, cost and profit control, etc. FINANCIAL ANALYSIS We know business is mainly concerned with the financial activities. In order to ascertain the financial status of the business every enterprise prepares certain statements, known as financial statements. Financial statements are mainly prepared for decision making purposes but the information as is provided in the financial statements is not adequately helpful in drawing a meaningful conclusion. Thus, an effective analysis and interpretation of financial statement is required. Financial analysis means establishing a meaningful relationship between various items of the two financial statements with each other in such a way that a conclusion is drawn. By financial statements we mean two statements: Profit and loss account or Income Statement Balance Sheet or Position Statement The term financial analysis is also known as analysis and interpretation of financial statements. It refers to establishing meaningful relationship between various items of the two financial stateme nts (income and position statement). It determines the financial strength and weakness of the firm. Analysis of financial statements is an attempt to assess the efficiency and performance of an enterprise. Thus, the analysis and interpretation of financial statements is very essential to measure the efficiency, profitability, financial soundness and future prospects of the business units. Financial analysis serves the following purposes: Measuring the profitability Indicating the trend of achievements Assessing the growth potential of business Comparative position in relation to other firms COMPARATIVE STATEMENT Comparative study of financial statements is the comparison of the financial statements of the business with the previous years financial statements. It enables identification of weak points and applying corrective measures. Practically, two financial statements are prepared in comparative form for analysis purpose. COMPARATIVE BALANCE SHEET: The comparative balance sheet shows the different assets and liabilities of the firm on different dates to make comparison of balances from one date to another. The comparative balance sheet has two columns for the data of original balance sheets. A third column is used to show change (increase / decrease) in figures. The fourth column may be added for giving percentages of increase or decrease. While interpreting comparative Balance Sheet the interpreter is expected to study the following aspects: Current financial position and liquidity position Long term financial position Profitability of the concern TREND ANALYSIS Trend analysis seeks out and examines systematic historical patterns in financial statements or other quantitative data. Such analysis of data overtime can vary from primarily descriptive techniques to more complex cause and effect methods. This module minimizes discussions of cause and effect analysis and focuses on the descriptive methods of trend analysis and two closely related analytical techniques- fluctuation analysis and common size statements analysis. Trend analysis usually involves choosing one fiscal period and then expressing subsequent quantities as a percentage of the data associated with this base period. In the case of an income statement, changes in all items could be assessed in relation to the base period. Significant changes can then be investigated further. Trend analysis is valuable when one wants to use historical data to predict future values or to calculate expected values for comparison to actual current values. Trend analysis is also useful for ide ntifying unexpected variances that may indicate strategic or operational changes or entity weaknesses worthy of additional exploration and analysis. TREND ANALYSIS = NEXT YEAR CURRENT YEAR / CURRENT YEAR *100 CHAPTER 2 RESEARCH STUDY TITLE OF THE STUDY: A study on the FINANCIAL PERFORMANCE COMPARATIVE TREND ANALYSIS OF STATE BANK OF MYSORE (SBM) INTRODUCTION: Finance Finance is the life blood of business. It is rightly termed as the science of money. Finance is very essential for the smooth running of the business. Finance controls the policies, activities and decisions of every business. DEFINITION: FINANCE is that business activity which is concerned with the organization and conversion of capital funds in meeting financial needs and overall objectives of a business enterprise -Wheeler Finance is one of the major elements, which activates the overall growth of the economy. Finance is the lifeblood of economic activity. A well knit financial system directly contributes to the growth of the economy. An efficient financial system calls for the effective performance of financial institutions, financial instruments and financial markets. Financial Analysis We know business is mainly concerned with the financial activities. In order to ascertain the financial status of the business every enterprise prepares certain statements, known as financial statements. Financial statements are mainly prepared for decision making purposes but the information as is provided in the financial statements is not adequately helpful in drawing a meaningful conclusion. Thus, an effective analysis and interpretation of financial statement is required. Financial analysis means establishing a meaningful relationship between various items of the two financial statements with each other in such a way that a conclusion is drawn. By financial statements we mean two statements: Profit and loss account or Income Statement Balance Sheet or Position Statement The term financial analysis is also known as analysis and interpretation of financial statements. It refers to establishing meaningful relationship between various items of the two financial stateme nts (income and position statement). It determines the financial strength and weakness of the firm. Analysis of financial statements is an attempt to assess the efficiency and performance of an enterprise. Thus, the analysis and interpretation of financial statements is very essential to measure the efficiency, profitability, financial soundness and future prospects of the business units. Financial analysis serves the following purposes: Measuring the profitability Indicating the trend of achievements Assessing the growth potential of business Comparative position in relation to other firms Research Design A Research Design is a logical and systematic plan prepared for directing a research study. It specifies the objectives of the study, the methodology and the techniques to be adopted for achieving the objectives. It constitutes the blueprint for the collection, measurement and analysis of data. It is the plan, structure, and strategy of investigation conceived so as to obtain answers to research questions. A research design is the program that guides the investigator in the process of collecting, analyzing and interpreting observation. It provides a systematic plan of procedure for the researcher to follow. It is indispensable for a research project. STATEMENT OF PROBLEM: Banks contribute to the economic development of the country. The current study has been undertaken to analyze the financial strength and stability of State Bank of Mysore, to suggest remedies wherever possible, so as to set the banks progress on the right path and to see if it is able to achieve its objectives. This analysis is also critical and essential to study. This will provide direct benefit to the company. OBJECTIVES OF THE STUDY: To study the financial performance of the bank. To study the trends in the previous four years. To find out the profitability of the Bank. data for this from the bank To provide appropriate solutions to problems that exists. SCOPE OF THE STUDY: This study is conducted at State Bank of Mysore, Bangalore. The current study is conducted with the help of published annual reports of the bank of the years 2008-2012. The study gives an idea about the present financial position of the bank. HYPOTHESIS TESTING: OPERATIONAL DEFINITIONS: METHODOLOGY OF STUDY: Review of Literature Purpose In this project work secondary data are used as a basis of analysis. In this study the financial performance of State Bank of Mysore, only past financial statements like Balance Sheet is studied. The current study has been undertaken to analyze the functioning and financial performance of the bank over the past years and suggest remedies wherever possible so as to set the banks progress on the right path and to see if it is able to achieve its objectives. Method of Review In this project the method used was the 4 year annual report of State Bank of Mysore to analyze the trends in the previous years. In order to get the information regarding the bank and its operations, internet was used. The banks web address also helped to collect information regarding the country wide operations. Benefits of the Literature It facilitates to know types of secondary data, advantages of secondary data. It also helps to know the following: Topic on which similar research has been done Purpose of the earlier similar research Conclusion derived from the earlier research It facilitates to know how this research is different from the earlier one Helped in making this research more specific and precise thereby enabling to analyze the problem systematically. Data Collection Method The sources of data in this study are basically secondary in nature. Secondary data published by State Bank of Mysore is used for the study. Secondary data was collected from annual reports, other brochures and website of the bank. Reference Period A Reference Period of four years has been taken for the analysis i.e., 2008-2009, 2009-2010, 2010-2011, and 2011-2012. By conducting an analysis on a 4 year span, it provides a wider coverage on the operations of the bank and techniques can be brought about in a more effective manner. SAMPLING PLAN AND SAMPLE SIZE: This will not apply for the study as it is a finance topic, more dependent on secondary data. PLAN OF ANALYISIS: Techniques Used Trend Analysis Comparative statements LIMITATIONS OF THE STUDY: The study is limited to banking sector. Time period is one of the limitations of the study. Secondary data is used mainly for the study. Therefore, the limitations of secondary data are applicable to this study as well. The study is limited to the financial performance of State Bank of Mysore. The research was conducted to get an overall view of the firm; as such it was not possible to probe deep into the subject. CHAPTER SCHEME: INTRODUCTION This chapter mentions about information on the Industry Bank and the Subject Finance. RESEARCH STUDY This chapter contains the blue print of the entire project. Research Design is the arrangement of conditions for the collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure. It includes all the 10 steps in research design. Introduction, statement of problem, objectives of the study, scope of the study, hypothesis, operational definitions, methodology and sources of data, sampling design, plan of analysis and tools for collection of data, limitations of the study, overview of chapter scheme. COMPANY PROFILE This chapter includes an overview of the company Origin and development, products and services, competitors, organizational structure. DATA ANALYSIS AND INTERPRETATION This chapter includes the comparative trend analysis made from the secondary data obtained from the company such as t he company guide and brochures. With the help of tables and graphs, interpretations were made. Tables and graphs of capital, reserves surplus, deposits, borrowings, other liabilities provisions, total liabilities, cash balance with RBI, balances with bank money at call, investments, advances, fixed assets, other assets, total assets, contingent liability, bills for collection, equity paid up, net worth, capital employed, sales, PBT, PAT, EPS, dividend. FINDINGS, SUGGESTIONS AND CONCLUSION This is the last chapter in the research project which contains summary of findings for the study. Based on the analysis and interpretation, conclusions and suggestions are finally given by the researcher in this chapter.