www.icmai.in:@0.075898:0.974748:0.201486:0.974748:0.201486:0.957721:0.075898:0.957721:0.015775:0.015775:0.015775:0.005780:0.006278:0.009118:0.016807:0.011271:0.006278:0.005780:0.006278:0.010674 May 2017:@0.510339:0.977730:0.595693:0.977730:0.595693:0.962447:0.510339:0.962447:0.015974:0.009606:0.010131:0.004740:0.011452:0.011452:0.011452:0.010547 45:@0.898987:0.980093:0.921782:0.980093:0.921782:0.958399:0.898987:0.958399:0.011940:0.010855 l :@0.603419:0.976512:0.626517:0.976512:0.626517:0.965819:0.603419:0.965819:0.015197:0.004284:0.003618 The Management Accountant:@0.627196:0.977731:0.876926:0.977731:0.876926:0.962449:0.627196:0.962449:0.011452:0.011452:0.009009:0.004686:0.015974:0.010131:0.011452:0.009968:0.009787:0.009009:0.015974:0.009009:0.011452:0.006748:0.004686:0.013713:0.009009:0.009009:0.010131:0.011452:0.011452:0.006748:0.010131:0.011452:0.005843 Profitability of a Collection Account in a Bank*:@0.114615:0.211001:0.513415:0.211001:0.513415:0.195572:0.114615:0.195572:0.011687:0.008286:0.010366:0.005744:0.005744:0.006965:0.009715:0.010547:0.005663:0.005663:0.005663:0.006965:0.009226:0.004034:0.010366:0.006006:0.003001:0.004034:0.009986:0.004034:0.012067:0.010366:0.005663:0.005663:0.009425:0.009226:0.006965:0.005663:0.010366:0.011687:0.004034:0.012628:0.009226:0.009226:0.010366:0.011488:0.011687:0.006965:0.004034:0.005663:0.011687:0.004034:0.009986:0.004034:0.012248:0.009986:0.011687:0.011687:0.007345 Profit in the Collection Account: Income – Expenses:@0.114615:0.242951:0.502924:0.242951:0.502924:0.227668:0.114615:0.227668:0.010547:0.006965:0.009226:0.004613:0.004613:0.005843:0.003835:0.004704:0.010547:0.003835:0.005843:0.010547:0.008105:0.003835:0.010547:0.009226:0.004704:0.004704:0.008105:0.008105:0.005843:0.004704:0.009226:0.010547:0.003835:0.012809:0.008105:0.008105:0.009226:0.010547:0.010547:0.005843:0.004704:0.003835:0.005843:0.010547:0.008105:0.009226:0.015070:0.008105:0.003835:0.009046:0.003835:0.009226:0.009226:0.009226:0.008105:0.010547:0.006965:0.008105:0.006965 = Sales* Price per Unit of Sales – Sales* Cost per unit of Sales - Overheads:@0.114615:0.258925:0.684985:0.258925:0.684985:0.243643:0.114615:0.243643:0.012067:0.003835:0.009226:0.009226:0.004704:0.008105:0.006965:0.006965:0.003835:0.010547:0.006965:0.004704:0.008105:0.008105:0.003835:0.009226:0.008105:0.006965:0.003835:0.011687:0.010547:0.004704:0.005843:0.003835:0.009226:0.007016:0.003835:0.009226:0.009226:0.004704:0.008105:0.006965:0.003835:0.009046:0.003835:0.009226:0.009226:0.004704:0.008105:0.006965:0.006965:0.003835:0.010547:0.009226:0.006965:0.005843:0.003835:0.009226:0.008105:0.006965:0.003835:0.010547:0.010547:0.004704:0.005843:0.003835:0.009226:0.007016:0.003835:0.003835:0.003835:0.003835:0.003835:0.003835:0.003835:0.009226:0.009226:0.004704:0.008105:0.006965:0.003835:0.005843:0.003835:0.011868:0.008519:0.008105:0.006965:0.010547:0.008105:0.009226:0.009226:0.006965 = Q*P – Q*V – F:@0.419741:0.274900:0.538202:0.274900:0.538202:0.259618:0.419741:0.259618:0.012067:0.003835:0.011868:0.006965:0.010547:0.003835:0.009046:0.003835:0.011868:0.006965:0.011687:0.003835:0.009046:0.003835:0.009226 Where Q = No of Units (Quantity):@0.114615:0.290875:0.369789:0.290875:0.369789:0.275593:0.114615:0.275593:0.016988:0.010547:0.008105:0.006965:0.008105:0.003835:0.011868:0.003835:0.012067:0.003835:0.012809:0.009226:0.003835:0.009226:0.007018:0.003835:0.011687:0.010547:0.004704:0.005843:0.006965:0.003835:0.005843:0.011868:0.010547:0.009226:0.010547:0.005843:0.004704:0.005843:0.009226:0.005843 P = Price per Unit:@0.159228:0.306850:0.292687:0.306850:0.292687:0.291567:0.159228:0.291567:0.010547:0.003835:0.012067:0.003835:0.010547:0.006965:0.004704:0.008105:0.008105:0.003835:0.009226:0.008105:0.006965:0.003835:0.011687:0.010547:0.004704:0.005843 V = Cost per Unit (Variable Cost):@0.159228:0.322825:0.401431:0.322825:0.401431:0.307542:0.159228:0.307542:0.011687:0.003835:0.012067:0.003835:0.010547:0.009226:0.006965:0.005843:0.003835:0.009226:0.008105:0.006965:0.003835:0.011687:0.010547:0.004704:0.005843:0.003835:0.005843:0.009876:0.009226:0.006965:0.004704:0.008702:0.009226:0.004704:0.008105:0.003835:0.010547:0.009226:0.006965:0.005843:0.005843 F = Overheads (Fixed Costs):@0.159228:0.338800:0.366822:0.338800:0.366822:0.323517:0.159228:0.323517:0.009226:0.003835:0.012067:0.003835:0.011868:0.008521:0.008105:0.006965:0.010547:0.008105:0.009226:0.009226:0.006965:0.003835:0.005843:0.009226:0.004704:0.008935:0.008105:0.009226:0.003835:0.010547:0.009226:0.006965:0.005843:0.006965:0.005843 Break-even point means where profit is Zero::@0.114615:0.354775:0.449626:0.354775:0.449626:0.339492:0.114615:0.339492:0.010547:0.006965:0.008105:0.009226:0.009226:0.005843:0.008105:0.008521:0.008105:0.010547:0.003835:0.009226:0.009226:0.004704:0.010547:0.005843:0.003835:0.015070:0.008105:0.009226:0.010547:0.006965:0.003835:0.013241:0.010547:0.008105:0.006965:0.008105:0.003835:0.009226:0.006965:0.009226:0.004613:0.004613:0.005843:0.003835:0.004704:0.006965:0.003835:0.009226:0.008105:0.006965:0.009226:0.004704 B.E.P. = P = 0 = Q’*P – Q’*V – F:@0.114615:0.370749:0.348082:0.370749:0.348082:0.355467:0.114615:0.355467:0.010547:0.004704:0.009226:0.004704:0.007309:0.004704:0.003835:0.012067:0.003835:0.010547:0.003835:0.012067:0.003835:0.010547:0.003835:0.012067:0.003835:0.011868:0.004704:0.006965:0.010547:0.003835:0.009046:0.003835:0.011868:0.004704:0.006965:0.011687:0.003835:0.009046:0.003835:0.009226 Where Q’ is Quantity of Units sold at Break Even Point Level:@0.114615:0.386724:0.563687:0.386724:0.563687:0.371442:0.114615:0.371442:0.016988:0.010547:0.008105:0.006965:0.008105:0.003835:0.011868:0.004704:0.003835:0.004704:0.006965:0.003835:0.011868:0.010547:0.009226:0.010547:0.005843:0.004704:0.005843:0.009226:0.003835:0.009226:0.007016:0.003835:0.011687:0.010547:0.004704:0.005843:0.006965:0.003835:0.006965:0.009226:0.004704:0.009226:0.003835:0.009064:0.005843:0.003835:0.010547:0.006965:0.008105:0.009226:0.009226:0.003835:0.009226:0.008519:0.008105:0.010547:0.003835:0.009661:0.009226:0.004704:0.010547:0.005843:0.003835:0.009226:0.008105:0.008521:0.008105:0.004704 0 = Q’(P – V) – F:@0.114615:0.402699:0.268282:0.402699:0.268282:0.387416:0.114615:0.387416:0.003835:0.003835:0.003835:0.003835:0.003835:0.003835:0.010547:0.003835:0.007218:0.012067:0.003835:0.011868:0.004704:0.005843:0.010547:0.003835:0.009046:0.003835:0.011687:0.005843:0.003835:0.009046:0.003835:0.009226 or F = Q’ (P – V):@0.114615:0.418674:0.249991:0.418674:0.249991:0.403391:0.114615:0.403391:0.009226:0.006965:0.003835:0.003835:0.003835:0.009226:0.003835:0.003835:0.003835:0.012067:0.003835:0.011868:0.004704:0.003835:0.005843:0.010547:0.003835:0.009046:0.003835:0.011687:0.005843 or Q’ = F/ (P – V):@0.114615:0.434649:0.249286:0.434649:0.249286:0.419366:0.114615:0.419366:0.009226:0.006965:0.003835:0.003835:0.003835:0.011868:0.004704:0.003835:0.012067:0.003835:0.009226:0.006965:0.003835:0.005843:0.010547:0.003835:0.009046:0.003835:0.011687:0.005843 Fixed Cost of handling this account for the last one Year, i.e. F:@0.114615:0.450624:0.576079:0.450624:0.576079:0.435341:0.114615:0.435341:0.009226:0.004704:0.008937:0.008105:0.009226:0.003835:0.010547:0.009226:0.006965:0.005843:0.003835:0.009226:0.007018:0.003835:0.010547:0.009226:0.010547:0.009226:0.004704:0.004704:0.010547:0.009226:0.003835:0.005843:0.010547:0.004704:0.006965:0.003835:0.009226:0.008105:0.008105:0.009226:0.010547:0.010547:0.005843:0.003835:0.004704:0.009226:0.006965:0.003835:0.005843:0.010547:0.008105:0.003835:0.004704:0.009226:0.006965:0.005843:0.003835:0.009226:0.010547:0.008105:0.002746:0.010439:0.008105:0.009226:0.005536:0.004704:0.003835:0.004704:0.004704:0.007761:0.004704:0.003835:0.009226 F = Salaries + Overheads = 24.24 + 7.31 = 31.61:@0.114615:0.466598:0.495143:0.466598:0.495143:0.451316:0.114615:0.451316:0.009226:0.003835:0.012067:0.003835:0.003835:0.009226:0.009226:0.004704:0.009226:0.006965:0.004704:0.008105:0.006965:0.003835:0.012067:0.003835:0.011868:0.008519:0.008105:0.006965:0.010547:0.008105:0.009226:0.009226:0.006965:0.003835:0.012067:0.003835:0.010547:0.010547:0.004704:0.010547:0.010547:0.003835:0.012067:0.003835:0.010547:0.004704:0.010547:0.010547:0.003835:0.012067:0.003835:0.010547:0.010547:0.004704:0.010547:0.010547 V for Current Deposits = 0 (as no interest is paid on Current deposits):@0.114615:0.482573:0.631509:0.482573:0.631509:0.467291:0.114615:0.467291:0.011687:0.003835:0.004704:0.009226:0.006965:0.003835:0.010547:0.010547:0.007596:0.006965:0.008105:0.010547:0.005843:0.003835:0.011687:0.008105:0.009226:0.009226:0.006965:0.004704:0.005843:0.006965:0.003835:0.012067:0.003835:0.010547:0.003835:0.005843:0.009226:0.006965:0.003835:0.010547:0.009226:0.003835:0.004704:0.010547:0.005843:0.008105:0.006965:0.008105:0.006965:0.005843:0.003835:0.004704:0.006965:0.003835:0.009226:0.009226:0.004704:0.009226:0.003835:0.009226:0.010547:0.003835:0.010547:0.010547:0.007593:0.006965:0.008105:0.010547:0.005843:0.003835:0.009226:0.008105:0.009226:0.009226:0.006965:0.004704:0.005843:0.006965:0.005843 V for Term Deposits = (Interest paid on TD/ Total Average Term Deposits) * 100:@0.114615:0.498548:0.703624:0.498548:0.703624:0.483266:0.114615:0.483266:0.011687:0.003835:0.004704:0.009226:0.006965:0.003112:0.009299:0.008105:0.007128:0.015070:0.003835:0.011687:0.008105:0.009226:0.009226:0.006965:0.004704:0.005843:0.006965:0.003835:0.012067:0.003835:0.005843:0.005843:0.010547:0.005843:0.008105:0.006965:0.008105:0.006965:0.005843:0.003835:0.009226:0.009226:0.004704:0.009226:0.003835:0.009226:0.010547:0.003108:0.010547:0.011687:0.006965:0.003112:0.009299:0.009226:0.005843:0.009226:0.004704:0.003835:0.011271:0.008521:0.008105:0.006802:0.009064:0.008883:0.008105:0.003112:0.009299:0.008105:0.007128:0.015070:0.003835:0.011687:0.008105:0.009226:0.009226:0.006965:0.004704:0.005843:0.006965:0.005843:0.003835:0.006965:0.003835:0.010547:0.010547:0.010547 = 78.24/978*100 = 8%:@0.289485:0.514523:0.473725:0.514523:0.473725:0.499240:0.289485:0.499240:0.012067:0.003835:0.010547:0.010547:0.004704:0.010547:0.010547:0.006965:0.010547:0.010547:0.010547:0.006965:0.010547:0.010547:0.010547:0.003835:0.012067:0.003835:0.010547:0.013948 P is income on Funds Deployed Notionally = (11.23 * 12)/(304.83 + 978) * 100:@0.114615:0.530498:0.717934:0.530498:0.717934:0.515215:0.114615:0.515215:0.010547:0.003835:0.004704:0.006965:0.003835:0.004704:0.010547:0.008105:0.009226:0.015070:0.008105:0.003835:0.009226:0.010547:0.003835:0.009226:0.010547:0.010547:0.009226:0.006965:0.003835:0.011687:0.008105:0.009226:0.004704:0.008989:0.008521:0.008105:0.009226:0.003835:0.012809:0.009226:0.005843:0.004704:0.009226:0.010547:0.009226:0.004704:0.004177:0.009226:0.003835:0.012067:0.003835:0.005843:0.010547:0.010547:0.004704:0.010547:0.010547:0.003835:0.006965:0.003835:0.010547:0.010547:0.005843:0.006965:0.005843:0.010547:0.010547:0.010547:0.004704:0.010547:0.010547:0.003835:0.012067:0.003835:0.010547:0.010547:0.010547:0.005843:0.003835:0.006965:0.003835:0.010547:0.010547:0.010547 = 134.76/1283 * 100:@0.419741:0.546473:0.626867:0.546473:0.626867:0.531190:0.419741:0.531190:0.003835:0.003835:0.003835:0.003835:0.003835:0.003835:0.003835:0.003835:0.003835:0.003835:0.012067:0.003835:0.010547:0.010547:0.010547:0.004704:0.010547:0.010547:0.006965:0.010547:0.010547:0.010547:0.010547:0.003835:0.006965:0.003835:0.010547:0.010547:0.010547 = 10.50%:@0.419741:0.562448:0.534837:0.562448:0.534837:0.547165:0.419741:0.547165:0.003835:0.003835:0.003835:0.003835:0.003835:0.003835:0.003835:0.003835:0.003835:0.003835:0.012067:0.003835:0.010547:0.010547:0.004704:0.010547:0.010547:0.013948 Notional income on Current Deposits = 10.50 – 0 = 10.50:@0.114615:0.578422:0.555170:0.578422:0.555170:0.563140:0.114615:0.563140:0.012809:0.009226:0.005843:0.004704:0.009226:0.010547:0.009226:0.004704:0.003835:0.004704:0.010547:0.008105:0.009226:0.015070:0.008105:0.003835:0.009226:0.010547:0.003835:0.010547:0.010547:0.007596:0.006965:0.008105:0.010547:0.005843:0.003835:0.011687:0.008105:0.009226:0.009226:0.006965:0.004704:0.005843:0.006965:0.003835:0.012067:0.003835:0.010547:0.010547:0.004704:0.010547:0.010547:0.003835:0.009046:0.003835:0.010547:0.003835:0.012067:0.003835:0.010547:0.010547:0.004704:0.010547:0.010547 Notional Income on Term Deposits = 10.50 – 8.00 = 2.50:@0.114615:0.594397:0.550285:0.594397:0.550285:0.579115:0.114615:0.579115:0.012809:0.009226:0.005843:0.004704:0.009226:0.010547:0.009226:0.004704:0.003835:0.005843:0.010547:0.008105:0.009226:0.015070:0.008105:0.003835:0.009226:0.010547:0.003110:0.009299:0.008105:0.007128:0.015070:0.003835:0.011687:0.008105:0.009226:0.009226:0.006965:0.004704:0.005843:0.006965:0.003835:0.012067:0.003835:0.010547:0.010547:0.004704:0.010547:0.010547:0.003835:0.009046:0.003835:0.010547:0.004704:0.010547:0.010547:0.003835:0.012067:0.003835:0.010547:0.004704:0.010547:0.010547 Break Even Point in case only Current deposits are taken = 31.61/0.105 = 301 lakhs (Average Current :@0.114615:0.610372:0.895982:0.610372:0.895982:0.595089:0.114615:0.595089:0.010547:0.006965:0.008105:0.009226:0.009226:0.003835:0.009226:0.008521:0.008105:0.010547:0.003835:0.009659:0.009226:0.004704:0.010547:0.005843:0.003835:0.004704:0.010547:0.003835:0.008105:0.009226:0.006965:0.008105:0.003835:0.009226:0.010547:0.004179:0.009226:0.003835:0.010547:0.010547:0.007596:0.006965:0.008105:0.010547:0.005843:0.003835:0.009226:0.008105:0.009226:0.009226:0.006965:0.004704:0.005843:0.006965:0.003835:0.009226:0.006965:0.008105:0.003835:0.005843:0.009226:0.008682:0.008105:0.010547:0.003835:0.012067:0.003835:0.010547:0.010547:0.004704:0.010547:0.010547:0.006965:0.010547:0.004704:0.010547:0.010547:0.010547:0.003835:0.012067:0.003835:0.010547:0.010547:0.010547:0.003835:0.004704:0.009226:0.009226:0.010547:0.006965:0.003835:0.005843:0.011267:0.008521:0.008105:0.006802:0.009064:0.008883:0.008105:0.003835:0.010547:0.010547:0.007598:0.006965:0.008105:0.010547:0.005843:0.003835:0.003835 Account balances for the Year):@0.114615:0.626347:0.346126:0.626347:0.346126:0.611064:0.114615:0.611064:0.012809:0.008105:0.008105:0.009226:0.010547:0.010547:0.005843:0.003835:0.009226:0.009226:0.004704:0.009226:0.010547:0.008105:0.008105:0.006965:0.003835:0.004704:0.009226:0.006965:0.003835:0.005843:0.010547:0.008105:0.002748:0.010439:0.008105:0.009226:0.006965:0.005843 Break Even Point in case Term Deposits are taken = 31.61/ 0.025 = 1264 lakhs (Average Term Deposits :@0.114615:0.642322:0.911547:0.642322:0.911547:0.627039:0.114615:0.627039:0.010547:0.006965:0.008105:0.009226:0.009226:0.004487:0.009226:0.008521:0.008105:0.010547:0.004487:0.009661:0.009226:0.004704:0.010547:0.005843:0.004487:0.004704:0.010547:0.004487:0.008105:0.009226:0.006965:0.008105:0.003761:0.009299:0.008105:0.007128:0.015070:0.004487:0.011687:0.008105:0.009226:0.009226:0.006965:0.004704:0.005843:0.006965:0.004487:0.009226:0.006965:0.008105:0.004487:0.005843:0.009226:0.008684:0.008105:0.010547:0.004487:0.012067:0.004487:0.010547:0.010547:0.004704:0.010547:0.010547:0.006965:0.004487:0.004487:0.010547:0.004704:0.010547:0.010547:0.010547:0.004487:0.012067:0.004487:0.010547:0.010547:0.010547:0.010547:0.004487:0.004704:0.009226:0.009226:0.010547:0.006965:0.004487:0.005843:0.011271:0.008521:0.008105:0.006802:0.009064:0.008883:0.008105:0.003763:0.009299:0.008105:0.007128:0.015070:0.004487:0.011687:0.008105:0.009226:0.009226:0.006965:0.004704:0.005843:0.006965:0.003835 balances for the year):@0.114615:0.658297:0.276276:0.658297:0.276276:0.643014:0.114615:0.643014:0.009226:0.009226:0.004704:0.009226:0.010547:0.008105:0.008105:0.006965:0.003835:0.004704:0.009226:0.006965:0.003835:0.005843:0.010547:0.008105:0.003835:0.008519:0.008105:0.009226:0.006965:0.005843 Break Even Point in case Current deposits and Term deposits are taken [The ratio of Current deposits (305 :@0.114615:0.674271:0.911531:0.674271:0.911531:0.658989:0.114615:0.658989:0.010547:0.006965:0.008105:0.009226:0.009226:0.003817:0.009226:0.008521:0.008105:0.010547:0.003817:0.009661:0.009226:0.004704:0.010547:0.005843:0.003817:0.004704:0.010547:0.003817:0.008105:0.009226:0.006965:0.008105:0.003817:0.010547:0.010547:0.007598:0.006965:0.008105:0.010547:0.005843:0.003817:0.009226:0.008105:0.009226:0.009226:0.006965:0.004704:0.005843:0.006965:0.003817:0.009226:0.010547:0.009226:0.003094:0.009299:0.008105:0.007128:0.015070:0.003817:0.009226:0.008105:0.009226:0.009226:0.006965:0.004704:0.005843:0.006965:0.003817:0.009226:0.006965:0.008105:0.003817:0.005843:0.009226:0.008684:0.008105:0.010547:0.003817:0.005843:0.010547:0.010547:0.008105:0.003817:0.006802:0.009064:0.005843:0.004704:0.009226:0.003817:0.009226:0.007019:0.003817:0.010547:0.010547:0.007598:0.006965:0.008105:0.010547:0.005843:0.003817:0.009226:0.008105:0.009226:0.009226:0.006965:0.004704:0.005843:0.006965:0.003817:0.005843:0.010547:0.010547:0.010547:0.003835 lakhs) and Term Deposits (978 lakhs) are 1:3 ] = P – V = 10.50 * 0.25 + 2.5 * 0.75 = 4.5. :@0.114615:0.690246:0.793068:0.690246:0.793068:0.674964:0.114615:0.674964:0.004704:0.009226:0.009226:0.010547:0.006965:0.005843:0.003835:0.009226:0.010547:0.009226:0.003110:0.009299:0.008105:0.007128:0.015070:0.003835:0.011687:0.008105:0.009226:0.009226:0.006965:0.004704:0.005843:0.006965:0.003835:0.005843:0.010547:0.010547:0.010547:0.003835:0.004704:0.009226:0.009226:0.010547:0.006965:0.005843:0.003835:0.009226:0.006965:0.008105:0.003835:0.010547:0.004704:0.010547:0.003835:0.005843:0.003835:0.012067:0.003835:0.010547:0.003835:0.009046:0.003835:0.011687:0.003835:0.012067:0.003835:0.010547:0.010547:0.004704:0.010547:0.010547:0.003835:0.006965:0.003835:0.010547:0.004704:0.010547:0.010547:0.003835:0.003835:0.012067:0.003835:0.010547:0.004704:0.010547:0.003835:0.006965:0.003835:0.010547:0.004704:0.010547:0.010547:0.003835:0.012067:0.003835:0.010547:0.004704:0.010547:0.004704:0.003835 Therefore B.E.P. = 31.61/0.045 = 702 lakhs [Current deposits 176 lakhs and Term Deposits 526 Lakhs]:@0.114615:0.706221:0.895638:0.706221:0.895638:0.690939:0.114615:0.690939:0.010547:0.010547:0.008105:0.006965:0.008105:0.004704:0.009226:0.006965:0.008105:0.003835:0.010547:0.004704:0.009226:0.004704:0.007307:0.004704:0.003835:0.012067:0.003835:0.010547:0.010547:0.004704:0.010547:0.010547:0.006965:0.010547:0.004704:0.010547:0.010547:0.010547:0.003835:0.012067:0.003835:0.010547:0.010547:0.010547:0.003835:0.004704:0.009226:0.009226:0.010547:0.006965:0.003835:0.005843:0.010547:0.010547:0.007595:0.006965:0.008105:0.010547:0.005843:0.003835:0.009226:0.008105:0.009226:0.009226:0.006965:0.004704:0.005843:0.006965:0.003835:0.010547:0.010547:0.010547:0.003835:0.004704:0.009226:0.009226:0.010547:0.006965:0.003835:0.009226:0.010547:0.009226:0.003108:0.009299:0.008105:0.007128:0.015070:0.003835:0.011687:0.008105:0.009226:0.009226:0.006965:0.004704:0.005843:0.006965:0.003835:0.010547:0.010547:0.010547:0.003835:0.009226:0.009226:0.009226:0.010547:0.006965:0.005843 Margin of Safety = [(1283 – 702)/ 1283] * 100 = 45%:@0.114615:0.722196:0.528485:0.722196:0.528485:0.706913:0.114615:0.706913:0.015070:0.009226:0.006965:0.009226:0.004704:0.010547:0.003835:0.009226:0.007018:0.003835:0.009226:0.009226:0.004885:0.008105:0.005843:0.009226:0.003835:0.012067:0.003835:0.005843:0.005843:0.010547:0.010547:0.010547:0.010547:0.003835:0.009046:0.003835:0.010547:0.010547:0.010547:0.005843:0.006965:0.003835:0.010547:0.010547:0.010547:0.010547:0.005843:0.003835:0.006965:0.003835:0.010547:0.010547:0.010547:0.003835:0.012067:0.003835:0.010547:0.010547:0.013948 B. E. P. is at 55% of last year Sales [Current Deposits and Term Deposits] :@0.114615:0.738171:0.654141:0.738171:0.654141:0.722888:0.114615:0.722888:0.010547:0.004704:0.003835:0.009226:0.004704:0.003835:0.007309:0.004704:0.003835:0.004704:0.006965:0.003835:0.009062:0.005843:0.003835:0.010547:0.010547:0.013948:0.003835:0.009226:0.007019:0.003835:0.004704:0.009226:0.006965:0.005843:0.003835:0.008519:0.008105:0.009226:0.006965:0.003835:0.009226:0.009226:0.004704:0.008105:0.006965:0.003835:0.005843:0.010547:0.010547:0.007598:0.006965:0.008105:0.010547:0.005843:0.003835:0.011687:0.008105:0.009226:0.009226:0.006965:0.004704:0.005843:0.006965:0.003835:0.009226:0.010547:0.009226:0.003110:0.009299:0.008105:0.007126:0.015070:0.003835:0.011687:0.008105:0.009226:0.009226:0.006965:0.004704:0.005843:0.006965:0.005843:0.003835 A Competitor had entered at this stage and offered the Customer 50% of Sales (Current and Term Deposits).:@0.114615:0.754146:0.907195:0.754146:0.907195:0.738863:0.114615:0.738863:0.012772:0.003238:0.010511:0.009190:0.015034:0.009190:0.008069:0.005807:0.004668:0.005807:0.009190:0.006929:0.003238:0.010511:0.009190:0.009190:0.003238:0.008069:0.010511:0.005807:0.008069:0.006929:0.008069:0.009190:0.003238:0.009035:0.005807:0.003238:0.005807:0.010511:0.004668:0.006929:0.003238:0.006929:0.005807:0.009035:0.008854:0.008069:0.003238:0.009190:0.010511:0.009190:0.003238:0.009190:0.005362:0.004856:0.008069:0.006929:0.008069:0.009190:0.003238:0.005807:0.010511:0.008069:0.003238:0.010511:0.010511:0.006929:0.005807:0.009190:0.015034:0.008069:0.006929:0.003238:0.010511:0.010511:0.013912:0.003238:0.009190:0.006990:0.003238:0.009190:0.009190:0.004668:0.008069:0.006929:0.003238:0.005807:0.010511:0.010511:0.007571:0.006929:0.008069:0.010511:0.005807:0.003238:0.009190:0.010511:0.009190:0.002507:0.009270:0.008069:0.007099:0.015034:0.003238:0.011651:0.008069:0.009190:0.009190:0.006929:0.004668:0.005807:0.006929:0.005807:0.004704 Alternatives available for ABC Bank are::@0.114615:0.770121:0.416193:0.770121:0.416193:0.754838:0.114615:0.754838:0.012809:0.004704:0.005843:0.008105:0.007417:0.010547:0.009064:0.005843:0.004360:0.008521:0.008105:0.006965:0.003835:0.008521:0.008883:0.009226:0.004704:0.004704:0.008700:0.009226:0.004704:0.008105:0.003835:0.004704:0.009226:0.006965:0.003835:0.012809:0.010547:0.010547:0.003835:0.010547:0.009226:0.010547:0.009226:0.003835:0.009226:0.006965:0.008105:0.004704 Reducing F [which may be possible]:@0.114615:0.786095:0.382743:0.786095:0.382743:0.770813:0.114615:0.770813:0.010981:0.008105:0.009226:0.010547:0.008105:0.004704:0.010547:0.009226:0.003835:0.009226:0.003835:0.005843:0.013241:0.010547:0.004704:0.008105:0.010547:0.003835:0.015070:0.008702:0.009226:0.003835:0.009226:0.008105:0.003835:0.009226:0.009226:0.006965:0.006965:0.004704:0.009226:0.004704:0.008105:0.005843 Say “NO” [i.e. Driving out the Customer]:@0.114615:0.802070:0.419323:0.802070:0.419323:0.786788:0.114615:0.786788:0.009226:0.008702:0.009226:0.003835:0.008105:0.012809:0.011868:0.008105:0.003835:0.005843:0.004704:0.004704:0.007759:0.004704:0.003835:0.011687:0.006965:0.004360:0.009226:0.004704:0.010547:0.009226:0.003835:0.009226:0.010547:0.005843:0.003835:0.005843:0.010547:0.008105:0.003835:0.010547:0.010547:0.006965:0.005843:0.009226:0.015070:0.008105:0.006965:0.005843 Say “Yes” – and Explore Better Deployment of Funds:@0.114615:0.818045:0.508565:0.818045:0.508565:0.802762:0.114615:0.802762:0.009226:0.008702:0.009226:0.003835:0.008105:0.010439:0.008105:0.006965:0.008105:0.003835:0.009046:0.003835:0.009226:0.010547:0.009226:0.003835:0.009226:0.009226:0.009226:0.004704:0.009226:0.006965:0.008105:0.003835:0.010547:0.008105:0.005843:0.005843:0.008105:0.006965:0.003835:0.011687:0.008105:0.009226:0.004704:0.008989:0.009226:0.015070:0.008105:0.010547:0.005843:0.003835:0.009226:0.007018:0.003835:0.009226:0.010547:0.010547:0.009226:0.006965 alternate scope of income like Service Charges (Fixed Quotation and Floating Quotation) per bill and collect :@0.114615:0.834020:0.911095:0.834020:0.911095:0.818737:0.114615:0.818737:0.009190:0.004668:0.005807:0.008069:0.007387:0.010511:0.009033:0.005807:0.008069:0.003229:0.006929:0.008069:0.009190:0.009190:0.008069:0.003229:0.009190:0.006989:0.003238:0.004668:0.010511:0.008069:0.009190:0.015034:0.008069:0.003229:0.004668:0.004668:0.008653:0.008069:0.003229:0.009190:0.008069:0.007459:0.009190:0.004668:0.008069:0.008069:0.003229:0.010511:0.010511:0.009190:0.006929:0.008850:0.008069:0.006929:0.003229:0.005807:0.009190:0.004668:0.008906:0.008069:0.009190:0.003229:0.011832:0.010511:0.009190:0.005807:0.009033:0.005807:0.004668:0.009190:0.010511:0.003229:0.009190:0.010511:0.009190:0.003229:0.009190:0.004668:0.009190:0.009033:0.005807:0.004668:0.010511:0.009190:0.003229:0.011832:0.010511:0.009190:0.005807:0.009033:0.005807:0.004668:0.009190:0.010511:0.005807:0.003229:0.009190:0.008069:0.006929:0.003229:0.009190:0.004668:0.004668:0.004668:0.003229:0.009190:0.010511:0.009190:0.003229:0.008069:0.009190:0.004668:0.004668:0.008069:0.008069:0.005843:0.003835 it every quarter:@0.114615:0.849995:0.231519:0.849995:0.231519:0.834712:0.114615:0.834712:0.004704:0.005843:0.003835:0.008105:0.008521:0.008105:0.007327:0.009226:0.003835:0.009226:0.010547:0.009226:0.007488:0.005843:0.008105:0.006965 Increase Current Deposit Balance and keep it as near the BEP :@0.114615:0.865970:0.576551:0.865970:0.576551:0.850687:0.114615:0.850687:0.005843:0.010547:0.008105:0.006965:0.008105:0.009226:0.006965:0.008105:0.003835:0.010547:0.010547:0.007596:0.006965:0.008105:0.010547:0.005843:0.003835:0.011687:0.008105:0.009226:0.009226:0.006965:0.004704:0.005843:0.003835:0.010547:0.009226:0.004704:0.009226:0.010547:0.008105:0.008105:0.003835:0.009226:0.010547:0.009226:0.003835:0.008682:0.008105:0.008105:0.009226:0.003835:0.004704:0.005843:0.003835:0.009226:0.006965:0.003835:0.010547:0.008105:0.009226:0.006965:0.003835:0.005843:0.010547:0.008105:0.003835:0.010547:0.009226:0.010547:0.003835 301 lakhs:@0.576551:0.865970:0.661634:0.865970:0.661634:0.850541:0.576551:0.850541:0.011307:0.011307:0.011307:0.004034:0.005663:0.009986:0.011687:0.011687:0.008105 Source: Dr. K Satyanarayana, Ex-Professor, National Institute of Bank Management, Pune.:@0.114615:0.881944:0.874996:0.881944:0.874996:0.866515:0.114615:0.866515:0.009805:0.010366:0.011488:0.007833:0.009226:0.009425:0.004903:0.004034:0.013568:0.006459:0.004903:0.004034:0.013008:0.004034:0.009805:0.009986:0.006965:0.008899:0.009986:0.011687:0.009986:0.008467:0.009697:0.008901:0.009986:0.011687:0.009986:0.004903:0.004034:0.010746:0.009606:0.006024:0.011687:0.008286:0.010366:0.006006:0.009425:0.008105:0.008105:0.010366:0.006601:0.004903:0.004034:0.013387:0.009986:0.006965:0.005663:0.010366:0.011687:0.009986:0.005663:0.004034:0.006603:0.011687:0.008105:0.006965:0.005663:0.006965:0.011488:0.006965:0.009425:0.004034:0.010366:0.006006:0.003000:0.004034:0.012248:0.009986:0.011687:0.011687:0.004034:0.016590:0.009986:0.011687:0.009460:0.009805:0.009425:0.016210:0.009425:0.011687:0.006965:0.004903:0.004034:0.011687:0.011488:0.011687:0.009425:0.004903 The figures are actuals of a real account from a Bank.:@0.114615:0.897919:0.567633:0.897919:0.567633:0.882490:0.114615:0.882490:0.011307:0.011687:0.009425:0.004034:0.005744:0.005744:0.009805:0.011488:0.008123:0.009425:0.008105:0.004034:0.009986:0.008123:0.009425:0.004034:0.009986:0.009226:0.006965:0.011488:0.009986:0.005663:0.008105:0.004034:0.010366:0.006006:0.003000:0.004034:0.009986:0.004034:0.008123:0.009425:0.009986:0.005663:0.004034:0.009986:0.009226:0.009226:0.010366:0.011488:0.011687:0.006965:0.004034:0.006006:0.008286:0.010366:0.016210:0.004034:0.009986:0.004034:0.012248:0.009986:0.011687:0.011687:0.004903 The concept of Break Even Point of Bank Branches and Customer’s business were also in vogue in branches in :@0.092308:0.131127:0.926944:0.131127:0.926944:0.115844:0.092308:0.115844:0.010547:0.010547:0.008105:0.004143:0.008105:0.009226:0.010547:0.008105:0.008105:0.009226:0.005843:0.004143:0.009226:0.007019:0.004143:0.010547:0.006965:0.008105:0.009226:0.009226:0.004143:0.009226:0.008521:0.008105:0.010547:0.004143:0.009661:0.009226:0.004704:0.010547:0.005843:0.004143:0.009226:0.007019:0.004143:0.010547:0.009226:0.010547:0.009226:0.004143:0.010547:0.006802:0.009226:0.010547:0.008105:0.010547:0.008105:0.006965:0.004143:0.009226:0.010547:0.009226:0.004143:0.010547:0.010547:0.006965:0.005843:0.009226:0.015070:0.008105:0.006965:0.004360:0.006965:0.004143:0.009226:0.010547:0.006965:0.004704:0.010547:0.008105:0.006965:0.006965:0.004143:0.013062:0.008105:0.006965:0.008105:0.004143:0.009226:0.004704:0.006965:0.009226:0.004143:0.004704:0.010547:0.004143:0.008521:0.008883:0.009226:0.010547:0.008105:0.004143:0.004704:0.010547:0.004143:0.009226:0.006802:0.009226:0.010547:0.008105:0.010547:0.008105:0.006965:0.004143:0.004704:0.010547:0.003835 1990s and it is still being used. The following case of a collection account of bills and cheques of a customer is :@0.076930:0.147102:0.926799:0.147102:0.926799:0.131819:0.076930:0.131819:0.010583:0.010583:0.010583:0.010583:0.007001:0.004631:0.009263:0.010583:0.009263:0.004631:0.004740:0.005880:0.004631:0.004740:0.007001:0.004631:0.007001:0.005880:0.004740:0.004740:0.004740:0.004631:0.009263:0.008141:0.004740:0.010583:0.009263:0.004631:0.010583:0.007001:0.008141:0.009263:0.004740:0.003908:0.010583:0.010583:0.008141:0.004631:0.004740:0.009263:0.004740:0.004740:0.008919:0.013804:0.004740:0.010583:0.009263:0.004631:0.008141:0.009263:0.007001:0.008141:0.004631:0.009263:0.007056:0.004631:0.009263:0.004631:0.008141:0.009263:0.004740:0.004740:0.008141:0.008141:0.005880:0.004740:0.009263:0.010583:0.004631:0.009263:0.008141:0.008141:0.009263:0.010583:0.010583:0.005880:0.004631:0.009263:0.007056:0.004631:0.009263:0.004740:0.004740:0.004740:0.007001:0.004631:0.009263:0.010583:0.009263:0.004631:0.008141:0.010583:0.008141:0.009263:0.010583:0.008141:0.007001:0.004631:0.009263:0.007056:0.004631:0.009263:0.004631:0.008141:0.010583:0.007001:0.005880:0.009263:0.015106:0.008141:0.007001:0.004631:0.004740:0.006965:0.003835 analyzed at the bank to find out whether the customer’s account is profitable or not.:@0.076930:0.163076:0.706249:0.163076:0.706249:0.147794:0.076930:0.147794:0.009226:0.010547:0.009226:0.004179:0.009226:0.007562:0.008105:0.009226:0.003835:0.009064:0.005843:0.003835:0.005843:0.010547:0.008105:0.003835:0.009226:0.009226:0.010547:0.009226:0.003835:0.005843:0.009226:0.003835:0.004613:0.004613:0.010547:0.009226:0.003835:0.009226:0.010547:0.005843:0.003835:0.013243:0.010547:0.008105:0.005843:0.010547:0.008105:0.006965:0.003835:0.005843:0.010547:0.008105:0.003835:0.008105:0.010547:0.006965:0.005843:0.009226:0.015070:0.008105:0.006965:0.004360:0.006965:0.003835:0.009226:0.008105:0.008105:0.009226:0.010547:0.010547:0.005843:0.003835:0.004704:0.006965:0.003835:0.009226:0.006965:0.009226:0.004613:0.004613:0.005843:0.008702:0.009226:0.004704:0.008105:0.003835:0.009226:0.006965:0.003835:0.010547:0.009226:0.005843:0.004704