Submission#2 Company Assigned: UCO Bank

1) Please state the summarized income statement equation for the last two years from the latest given company annual
report with all figures in Rs. Crores (or billions) … Please comment within 100 words.
Summarized Income Statement equation year 2019 and 2020 in Rs. Cr
Specific Income Expenses Retained Profit Total
Items (I) (E) Earnings (Loss)
for the During bought
year end Interest Other Interest Operating Provisions Contingencies Deferred Provision the forward
31st Earned Income Expended Expenses & Arrear Tax Towards Period =
March - - = (I)-(E)-(T)
Wages Tax
2020 15,134.3 2,871.21 10,042.06 3,127.88 8,350.34 197.80 -1275.71 0.00 -2,436.83 -9975.45 -12,412.28
3
2019 14,330.6 1,513.51 10,019.47 3,064.42 9,696.48 128.61 -2759.12 15.36 -4,321.08 -5603.83 -9924.91
3
Variance 5.61% 89.71% 0.23% 2.07% -13.88% 53.80% -53.76% -100.00% -43.61% 78.01% 25.06%

Sale of Investments and Recovery in Written off Accounts (Miscellaneous Income) have contributed to the Increase in
Income. Under Miscellaneous provisions scheme 1970 the Expense has increased from Rs.1132.80 Cr to Rs.1806.77 Cr.
Miscellaneous provisions scheme 1970 talks of elected director, board members and renumerations. The Bank does not have
any current Income Tax obligation during the year 2020. During the 2020 net amount of Rs.1275.71/- Cr (Rs.2759.12 Cr for FY
2018-19) has been recognized as Deferred Tax Assets. Loss of Rs. -9975.45/- Cr loss was bought forward to the year 2020
when compared to loss of Rs. -5603.87/- Cr in year 2019.

2) Mention five biggest items as part of the “sales / revenue / income” and “expenses / dividends / deductions” (along with
their proportions) as mentioned in the annual report (to the extent available) for last two years … if needed, you may like
referring to the notes/ schedules as well. Please give your comments within 100 words
%
Year End Year End
Change
31.03.2020 Proportion 31.03.2019
Sr Item Sub-Item Specific b/w Observations
(Rs. (2020) (Rs.
two
Crores) Crores)
years
1 Expense Interest Interest 9,308.69 45.54% 9,329.26 -0.22% Interest on Deposits have decreased between
on 2019 and 2020 is because, the Cost of deposits
Deposits has decreased from 5.07 % in FY 2019 to 4.90 %
in FY 2020, as the Global Deposits has decreased
by 2.38% as of 31.03.2020
2 Revenue Income Interest 8,140.50 45.21% 7,824.75 4.04% International Business Advances increased to Rs.
on 9,503 Crore in March 20 from Rs. 7,834 Crore in
Advances March 2019 with y-o-y growth of 21.30%.
Increase of 71% of Unsecured Advances from
Rs.7075 Cr in 2019 to Rs.12,121.38 Cr in 2020
3 Revenue Income Income 5,939.08 32.98% 5,348.27 11.05% Non-SLR investments (Domestic) such as
on investments in bonds, capital market and mutual
Investments fund grew by 21.96%.
4 Expense Operating Employee 1929.39 9.44% 1,946.21 -0.86% Major portion of employee payments is used for
Expenses Payments Pension
5 Revenue Other Miscellaneous 1404.59 7.80% 825.00 70.25% Recoveries in Written off Advances / Investments
Income Income are accounted for as 'Miscellaneous Income'.

3) Referring to the format given to you, mention one item that is missing and mention one item that you have found
interesting in the income statement. Elaborate within 100 words.

Missing Item: Dividends: Since Bank posted loss of Rs. -2436.83 Crore during the year 2020, no dividend has been given,
note there has been no dividend given since the year 2015. In addition, unpaid/unclaimed dividends are transferred into
“Investor Education and Protection Funds”

Interesting Item: Depreciation: As per RBI guidelines the depreciation of the software which forms an integral part of the
computer hardware is provided at ‘Straight Line Method’ and is fixed at the rate of 33.33%, which is the highest value than
the depreciation allocated for any of the other category of assets.