QIS & MSODSujit Kumar (P301414CMG471) Manish (P301414CMG439) Apoorva (P301414CMG422) Adarsh (P301414CMG411) Shashi (P301414CMG461) Jena Kumar Sharma Chhajed Prabha Agenda Introduction Quarterly Information System Scrutiny of QIS Monthly Select Operational Data MSOD Procedure Conclusion & Takeaway 2 . The due date or periodicity will be communicated by the concerned bank to the borrower. Cash Credit. firm or any business entity to the bank from which it has borrowed money (Term Loan. Most of the Banks have made QIS and MSOD mandatory for Working Capital limits of Rs. etc.1 .Introduction 3 QIS(Quarterly Information System) Report needs to be submitted by a company.) This report has to be submitted to the bank in the format prescribed/provided by them to keep them informed about the performance & position of the business entity. Working Capital. All the items included in these forms are taken from the budgeted statements.Quarterly Information System The whole picture about the quarterly and half yearly performance of the firm is presented in three forms. QIS Form I 4 Form II Form III . profit and loss account and balance sheet. It is half yearly operating/fund flow statement. 1.I.I. This form is to be submitted at the end of every quarter.I. Any thing beyond this requires detailed scrutiny 1.S FORM III: . Q.I.S FORM II: . Q. deviation of up to 10% is OK. It includes the estimated (budgeted) amount of related figures and is submitted to the bank at the beginning of every quarter. Q. . which involves the comparisons between the estimated amounts with the actual targets achieved.S FORM I: .) 5 1.Quarterly Information System(Contd.S FORM I & II. It involves the comparison between the actual & the estimated figures as well as bird’s eye view about the level of rise/fall in the various items covered in Q. .Submission of QIS Form Format 6 Contents Schedule of Submission QIS I Estimate for the ensuring quarter within projected level of production. sales. QIS II Performance during quarter vis-à-vis the estimate as given in the form I Within 6 weeks from the close of the quarter to which the statement relates QIS III Half yearly operation and fund flow statements Within a month from the close of the half year. current assets ¤t liabilities including bank borrowings To be submitted in the week preceding the commencement of the quarter to which the statement relates. 3. 1. 2. Stock statement. BEP and Margin of Safety. 2. . 1. CMA Projections and mismatch. . QIS III End use of funds. Capacity utilization. QIS II Classification of current assets and liabilities as per date. 2. 3. seasonality of activity.Scrutiny for QIS 1. Management of working capital Quality of liquidity management. . 7 QIS I Quantity and value of percentage of annual projection . Useful tool of credit monitoring for the banker. MSOD includes sales. receivable. short term bank borrowing and gross profit.Introduction . stock. .MSOD Prescribed by RBI in 1979 For the borrower enjoying working capital limit of INR 50 lakhs and above MSOD gives key performance figures of a unit on monthly basis. Receivables (Domestic and Export).Monthly Select Operational Data 9 All the firms on monthly basis prepare monthly select operational data. MSOD (Monthly Select Operational Data) gives details of monthly Production (Quantity). Sundry Creditors. . It is basically a monitoring tool for the bank for analyzing the performance of the firms and the utilization of the bank borrowings. Main purpose of preparing MSOD is to show company’s performance and progress to the banks. Sales (Quantity and Value). Short Term Borrowings from Banks and others and details of Stock (component wise) as at the beginning and end of the month. sales. purchase. . For close monitoring and to frame suitable monitoring action plan if required.Purpose To know performance of units in area like production. To know position of short term bank borrowing as against current assets built up and to know the extent of unpaid stock. To do trade analysis on the performance of business unit. and gross profit in particular month against target/projections. To assess the end term use of short term funds and shenanigans. It provides the estimated gross sale. . net sale and production of the unit Part B It is regarding sales The credit summation in the account of customer with bank should be compare with gross sales figures to check for variations.How to read MSOD MSOD return has six parts alphabetically numbered from A to G Part A It is regarding projection of borrower in current accounting year. . Part D It is regarding sundry creditors on purchase Here comparison is with purchase of RM and it should get tally with two months purchase.How to read MSOD (cond…) Part C It is regarding receivables Comparing the receivable figures with sales figures for any variation in receivable. Production should tally with stock IN and sales should with stock out. Part F It is regarding Stock. .How to read MSOD (cond…) Part E It is regarding short term bank borrowing i. Examine the paid stock position with the stock statement fig submitted for same month.e WC. spare should be appx tally to the purchase of the month which could correlate with drawls in the account. Level of Paid stock can be verified .Bankers take away MSOD is to be submitted by borrower along with monthly stock /book debt statement. Receivable outstanding against sales shows the level of credit extended by borrower to its buyer. Study of MSOD statements help bankers to know whether really activity has taken place in the unit during the month. Stock of RM. Conclusion 15 Scrutiny of QIS & MSOD data is essential for effective credit administration. Prevent siphoning of funds. Helps in assessment of WC credit limits. Help in checking the diversion of working capital funds. For banker it is the quick informative sensitizing data return. . Effective monitoring of advance by evaluating the performance of borrowing party. Maintain healthy credit culture. THANK YOU 16 .