Financial Performance Analysis of one of the leading Indian Sanskrit Universities - Rashtriya Sanskrit Vidyapeetha (RSVP), Tirupati

Abstract

Purpose of this Study:
The present study analyses the financial performance of an Indian Sanskrit University whose main objective is to promote the Cultural Renaissance of the ancient Indian civilisation, in order to understand the limitations of financial metrics in evaluating the socio-cultural outcomes expected from the non-commercial Service sector.
Methodology:
The motivation for this study is the 2017 article published in the Journal of Competitiveness, titled, “Financial Performance Determinants of Organisations” by Boyara, University of Debrecan, Hungary (Vol 9/Issue 3/ Sep 2017). The major finding of this study is that Asset Structure is insignificant in determining the financial performance of the Service sector.
This study on the financial performance has been based on the Annual Reports of the RSVP over the 10 year period ending 31.03.2019. The trends in Total Income (R), Total Expenditure (Z), Total Asset-base (A) and Fixed Asset-base (F) have been plotted using the Linear model. The significance of the Regression coefficients were tested using the F-values.
Main Findings of this Study:
a) The slope ‘b1’ (regression coefficient) of the trend-line for Fixed-assets was ‘Not’ significant and therefore the correlation coefficient (r) between the Fixed asset base (F) and the Excess of Income over Expenditure {?= (R-Z)} has been calculated. The correlation coefficient was very close to zero, thereby indicating that the fixed asset base has an ‘insignificant’ impact on the financial performance of the Sanskrit University. This has partially validated the findings of the earlier study referred above.
*Research Scholar, Department of Management Studies, Sri Venkateswara University,
** Professor and Head, Department of Management Studies, S.V. University, Tirupati
b) Financial Performance yard-sticks, by themselves, are inadequate to guide the policy-makers in evaluating the organizations working on the Socio-cultural objectives.
Practical Applications of this Study:
The Policy-makers would be encouraged to look beyond the conventional financial metrics for evaluating the ‘non-financial’ outcomes expected from the Socio-cultural organizations.
New Insights / Original ideas emanating from this Study:
This study opens up new avenues of research into the additional parametric inputs needed for assessing organisational effectiveness in the ‘not for profit’ enterprises.