The study of the research entitled a study on financial performance analysis for sri murugan

creditsspecifically focused on working capital management of the firm. Researcher used

descriptive research for the study. The details regarding the history and finance details of the
firm were collected through discussion with the company officers. The secondary data collected
from records, reports and profile of the firm. Data analysis was carried out and findings are
listed down. Suitable suggestions have been provided.
The tools used in this study where Liquidity ratios, inventory turnover ratio, debtors
turnover ratio, current asset turnover ratio, cash to current asset ratio, receivables to current
assets ratio, inventory to receivables ratio, gross profit ratio and net profit ratio, all these for five
years.
The firm is following a liberal credit policy with respect to its customers. On the other
hand, the credit enjoyed from its supplier has also nearly one year period of time. The study
recommends tight credit norms so that receivables of the firm will be reduced for better working
capital management.

Introduction:
Sri murgan credits was registered under the state co operatives law, on 25 th October
1988 and started its work on 4th November in the same year..Sri murgan creditshas 4182
members who have the voting power and 30 non members. Co-operative society gets funds from
following ways.
By getting deposits from members of the firm
Borrow needed funds from co-operative firm and state cooperative firm.
Using retained earnings from profit
By getting interest from karur district central co-operative firm where the surplus fund is
deposited.
Objectives:
The following are the objectives of Sri murgan credits.
To get deposits from members and non-members
To provide short term and middle term loans
To sell agri related products to farmers
To rent the agricultural equipments to farmers
MANAGEMENT:
At present there are 7 staffs have been working:
1. 1 secretary
2. 1 Asst secretary
3. 2 PDS salesman
4. 1 Clerks

PRODUCTS AVAILABLE IN THE FIRM:

22
1. AVAILABLE LOAN PRODUCTS:

Crop loan

Jewel loan

SHG (self Help Group Loan)

Small Industries Loan

INTEREST RATE FOR DEPOSITS:

Savings Deposit:
Interest rate for savings deposit is 4%

Fixed Deposits:
Interest rate for fixed deposits is based on the deposit days. It has two types of fixing

interest rates.
General

Days
15 to 45
46 to 179
180 to 364
1 year and above
3 year and above

General
4.5%
6%
8%
9%
8%

Old age people

4.5%
6%
8.5%
9.5%
8.5%