Cooperative

CONTENTS

CONTENTS

DETAILS PAGE NOCHAPTER I INTRODUCTION AND DESIGN OF THE STUDY 1-5

1.1 Introduction 11.2 Statement of the Problem 11.3 Scope of the study 21.4 Objectives of the study 21.5 Types of Data 2 1.5.1 Primary Data 3 1.5.2 Secondary Data 31.6 Methodological Design 31.7 Tools of analysis of the study 31.8 Definition of co-operative 31.9 Period of the study 41.10 Geographical Area Covered 41.11 Limitation of the study 41.12 Scheme of Chapterisation 5

CHAPTER II PRIMARY AGRICULTURAL CO-OPERATIVE CREDIT SOCIETY-AN OVERVIEW

6-13

2.1 Introduction 62.2 Historical Perspective 62.3 Basic Features of a co-operative Business 72.4 Co-operation 72.5 Co-operative movement in India 72.6 Co-operative movement in Tamilnadu 102.7 Organizational Structure 102.8 Primary Agricultural Co-operative Credit society in Tirunelveli District

12

2.9 Deposit 2.9.1 Saving Deposit 2.9.2 Fixed Deposit 2.9.3 Recurring Deposit

13131313

CHAPTER III FIANCIAL PERFORMANCE OF 0.1725 VEERAKAERALMPUDUR PRIMARY AGRICULTURAL CO-OPERATIVE CREDIT SOCIETY

14-18

3.1 Introduction 14

3.2 History of 0.1725 V.k.pudur PACCS 15

3.3 Objectives 0.1725 V.k.pudur PACCS 15

3.4 Share Capital 16

3.5 Borrowings 16

3.6 Loans and Advances 16

3.6.1 Short Term Loan 17

3.6.2 Medium Term Loan 17

3.6.3 Jewel Loan 17

3.6.4 Loan in Consumer 17

3.6.5 Loan in Self Help Group 17

3.7 Interest in Income 18

3.8 interest in Expenditure 18

3.9 Profit or Loss 18

CHAPTER IV SUMMARY OF FINDINGS, SUGGESTION AND CONCLUSIONS

49-53

4.1 Introduction 49

4.2 Findings 50

4.3 Suggestions 52

4.4 Conclusion 53

BIBLIGRAPHY

APPENDIX

INTRODUCTION AND DESIGN

OF THE STUDY

CHAPTER-I

INTRODUCTION AND DESIGN OF THE STUDY

1.1 INTRODUCATION

The word “co-operation” means “living together” and “working together”

The co-operative is a form of business organization which is

voluntaring organized for poor people. It is a form of organization where in person

associate together voluntarility for the furtherance of their economic interest. The

co-operative society aim is to venter service only

Co-operative is in no way new to India. It has been known and

practiced in this country since immemorial co-operative organization is an

economic objective. Co-operative in the pursuit of economic objective co-

operatives can contribute of reduction of the disparities of wealth or any rate of

preventing of an aggravation of the disparities of wealth. A co-operative

enterprises serve as automatic stabilizers keeping competition in flux co-operative

are medium for the transformation are socioeconomic fabric of society and fulfilling

the aspirations of the common people.

1.2 STATEMENT OF THE PROBLEM

This serious problem is actually indent field throughout the length the

breath of the economy. In such a situation it is clearly noted that the co-operative

are playing an important role in bringing about the green and white revolution in

the country and there by trying to reduce the economic unless of the country to a

very great extent similar is the case with the dairy 0.1725 veerakeralampudur

primary agricultural co-operative credit society in v.k.pudur.

1

1.3 SCOPE OF THE STUDY

The preset research study has been under taken to bring out the

overall development of loan producer of co-operative society in v.k.pudur the study

in confined only to the co-operative society as it overs. The functions of all the

village level the scope of this study is very vary indeed as it covers the many aspects

of economical developments the many aspect of economical developments of the

local people.

1.4 OBJECTIVES OF THE STUDY

The following are the important objective of the resent study bring out

the economic signiticanus primary agricultural co-operative credit society in

v.k.pudur

To develop the 0.1725 veerakeralampudur primary agriculture co-

operative credit society.

To study about the financial position of 0.1725 veerakeralampudur

primary agricultural co-operative credit society in v.k.pudur

To analyses the profit of 0.1725 veerakeralampudur primary agricultural

co- operative credit society in v.k.pudur.

To offer suitable suggestions in the study area.

1.5 TYPES OF DATA

The data are classified into two types such as

1) Primary data

2) Secondary data

2

1.5.1 PRIMARY DATA

The Primary data collected through 0.1725 veerakeralampudur

primary agricultural co-operative credit society in v.k.pudur.

1.5.2 SECONDARY DATA

Secondary data are those which are already collected by books,

newspaper, website etc.

1.6 METHODOLOGICAL DESIGN

The primary data were collected from the secretary of 0.1725

veerakeralampudur primary agricultural co-operative credit society in v.k.pudur

branch. The secondary data were collected from the Receipts and payment

account, trading account, profit and loss account, balance sheet, and other ledger

accounts of the 0.1725 veerakeralampudur primary agricultural co-operative credit

society and of various standard book, journals and ports.

1.7 TOOLS OF ANALYSIS OF THE STUDY

Statistical tools were used to analyze and interpret performance of the

bank. We used the statistical tools like percentages and various bas dig rams and

pie diagrams and analyzing the data.

1.8 DEFINITION OF CO-OPERATIVE

The International Labor Office defines a co-operative as “an association

of persons, usually of limited means, who have voluntarily joined together to

achieve a common economic and through the formation of a democratically

controlled business organization making equitable contribution to the capital

required and accepting a fair share of risks and benefits of the undertaking”.

3

Professor Paul lambert, a leading authority on co-operation, states, “A

co-operative society is an enterprise formed and directed by an enterprise formed

and directed by an association of users, applying with in itself the rules of

democracy and directly intended to serve both its own members and the

community as a whole”

1.9 PERIOD OF THE STUDY

The present study is conducted agricultural co-operative credit society

was from during period of 2010-2011

1.10 GEOGRAPHICAL AREA COVERED

This society covered in v.k pudur surrouraing Kalinga Patti, Raja

Gopalabery, Kalaneer kulam, Muthukrishnaperi, Kalluthu, Vellakkal, Rajapandi,

Thayar thoppu.

1.11 LIMITATIONS OF THE STUDY

1. This study only the general performance of the bank by taking into account

the tools like statistical technique advanced ratio analysis were not used.

2. Some of the statistics were newly formed as the study. Required such type of

statistical.

4

1.12 SCHEME OF CHAPTERISATION

This study has been organized and presented in five chapters.

1. First chapter comprises of introduction and design of study.

2. Second chapter covers with primary agricultural co-operative credit society

and overview.

3. Third chapter deals with the financial performance of 0.1725

veerakeralampudur primary agricultural co-operative credit society. It

highlights of share capital borrowing loans and advances.

4. Fourth chapter covers the summary of findings suggestions and conclusion.

5

PRIMARY AGRICULTURAL CO-OPERATIVE CREDIT SOCIETY –AN OVERVIEW

CHAPTER-II

PRIMARY AGRICULTURAL CO-OPERATIVE CREDIT SOCIETY

- AN OVERVIEW

2.1 INTRODUCTION

The primary agricultural co-operative credit society are formed by people of a certain area with the object of providing short term financial accommodation to the member and to develop the habit of saving among the member. The funds these society consists of share capital contributed by the member and the deposit received from the public and the members

Co-operation as a system emerged in the world to achieve social cohesion and well-knit and self-reliant communities where in the conflict of interest would be most minimum and self-help would be the made effective by mutual help.

It one goes through the history of the co-operative movement in the world it will concern if will be revealed that the main concern of the co-operative movement was the community.

2.2 HISTORICAL PERSPECITVE

Co-operative is a form of business organization. Therefore, it owes its origin to poverty and economic distress. Early history of Co-operative movement throughout the World shows that Co-operative organizations began with consumer Co-operatives. The first Co-operative society known as “Rochdale Pioneers” was formed by 28 flannel weavers in England in 1843. The various sectors of economic life where Co-operative organizations developed were agricultural credit. Supply of agricultural requisites, farming, agricultural marketing, dairying, industrial production, distribution, consumer Co-operative housing and urban credit etc.

6

The three tier system with state co-operative bank at district level and

primary credit securities at village level were recommended. In such cases, the

primary credit societies could be used to provide short, medium and long-term

loans.

2.3 BASIC FEATURES OF A CO-OPERATIVE BUSINESS

The Co-operative business has the following features.

Co-operative business is basically a non-commercial activity.

It is a non-profit enterprise.

Members who are the users own co-operative enterprises.

Co-operative is organized in response to mutual interest and economic

needs.

Co-operative emphasizes member’s control.

Co-operative organization is voluntary and the principle of

proportionality.

2.4 CO-OPERATION

Co-operation is the noblest idea if transforms human life from a

conflict of classes struggling for opposite interests to a friendly association in the

pursuit of the common goal.

7

2.5 CO-OPERATIVE MOVEMENT IN INDIA

Co-operative movement in our country was started to eradicate the misery and poverty primarily of the rural masses. So importance was given by the Government to organize the Agricultural credit society. While explaining the provisions of the co-operative societies Act of 1904 the Government of India said the present registration is especially designed to assist Agricultural credit which presents a far more important than that of Industrial credit-later some societies were started in towns also by non-agriculturists.

As a result of maclagan committee recommendation, numbers of societies begin to grow. The committee numbered the agricultural credit societies as 13,882 against 602 non-agricultural credit societies.

The Economic Depression of 1930 severely affected the agricultural credit societies more than the urban credit societies. Their progress had been the case with agricultural credit societies and through the war period witnessed a boom in agricultural prices. The pace of expansion in urban credit was greater than in Agricultural credit which was mainly concerned during the period with recovery from the slump of the thirties. The working capital of non-agricultural credit societies at the end of 1945-1946 amounted to RS. 38.32 cores compared to RS. 25.89 Cores of agricultural credit societies.

The country would be celebrating the first centenary of the co-operative movement exactly in the year 2004. During the hundred years co-operative sector continues to occupy an impartment place influencing the people towards social and economic changes and offers unlimited possibilities of participation economic resurgence. Actually in India, the movement was started (1904) by the British Government for the protection of farmers from the money lenders clutches. It has attained commanding height in various fields such as supply of agricultural credit, production and distribution of customer articles housing, daily and welfare measures to fisherman weaver, laborers, woman and down trodden people etc.

TYPES OF CO-OPERATIVE SOCIETIES IN INDIA

Credit societies Non Credit Societies

Agricultural Non Agricultural Industrial Co-Operatives

Credit Societies Credit Societies Processing Societies

Short-term Loan Long-term Credit Marketing Societies

State co-operative State Land Shortage and ware

Banks Development Bank housing Societies

District Primary Land Daily Co-Operative

Co-operative Banks development banks Societies

Primary Agricultural Co-Operative consumer

Co-Operative Bank Stores

Transport Societies

Educational and

Training Institutes

9

2.6 CO-OPERATIVE MOVEMENT IN TAMIL NADU

The First Co-Operative Society in India was started in Tamilnadu.

“The Triplicate Urban co-Operative Society” was established in madras.

2.7 ORGANIZATIONAL STRUCTURE

Organizational is the process at identifying and grouping at activities

is an undertaking. Sorting out, different positions and establishing authority.

Relationship amount these positions.

Study of organization structure is important because it is the structural

frame work with in which individuals efforts are Co-operatives and various

tasks are performed. The following charts show the organization stricture in

Tamilnadu co-operative movement.

10

11

2.8 PRIMARY AGRICULTURAL CO-OPERATIVE BANKING IN

TIRUNELVELI DISTRICT

Tirunelveli district is located in the southern part of Tamilnadu. The

district Extends over an area of 11433 square kilometers. The district has

population at 8.8% when related with the population of Tamilnadu. Agriculture is

the main occupation of the people in the district and it amounted 50% textile

industry is also found in the district next to agriculture. The important rivers in the

district are Thamiraparani, Chitaru, Cadana, Kundararu, Manimuthar etc. The

district has 10 taluks.

THE FOLLOWING TABLE SHOW THE NUMBER OF PRIMARY

AGRICULTURAL CO-OPERATIVE CREDIT SOCIETY IN TIRUNELVELI DISTRICT.

S.NO NAME OF TALUK NUMBER OF PACBs

1 Veerakeralampudur 13

2 Tenkasi 10

3 Shencottai 5

4 Nanguneri 18

5 Palaymlottai 8

6 Sankaran Kovil 43

7 Radhapuram 22

8 Ambasamudram 24

9 Tirunelveli 9

10 Sivagiri 19

TOTAL 161

SOURCE: Annual Performance register marches 2009 District Center Co-Operative

credit society Tirunelveli.

12

2.9 DEPOSIT

Funds are mobilized through accepting deposit and receiving borrowings are

part of working capital at the bank and working capital decides the volume at

business.

The bank mobilized the Funds mainly through accepting various deposits from

members and non-members. These Banks are having three types. The deposit

namely,

1. Savings Deposit

2. Fixed Deposit

3. Recurring Deposit

2.9.1 SAVING DEPOSIT

Saving deposit is mainly for the middle class people monthly income earners

individual (or) Joint Account opens a savings bank account members and non-

members at the Co-operative Bank open a saving deposit at Present.

2.9.2 FIXED DEPOSIT

An amount deposited for a specific period is called fixed deposits. Fixed

deposits are accepted by primary Agricultural Co-operative bank for a fixed period,

at fixed rate of interest agreed upon- Depending upon Period for which they were

accepted generally the bank repays amount only after the expiring of the specific

rate.

2.9.3 RECURRING DEPOSIT

The period of Recurring deposit is varying from bank to bank. Most of the

banks open such accounts for a period of Minimum 60 months (ie) 5 years

13

CHAPTER- III

FINANCIAL PERFOMANCE OF 0.1725 VEERAKERALAMPUDUR

PRIMARY AGRICULTURAL CO-OPERATIVE CREDIT SOCIETY

3.1 INTRODUCTION

The Co-operative movement was started in India to improve the condition

of rural masses. The maclagan committee on co-operation pointed out as early as

1915 that “Urban credit societies might serve purposes in training the upper and

middle classes to understand ordinary banking principles. The co-operative credit

society are formed by people of a certain area with the objective of providing

short term financial accommodation to the member and to develop the habit of

saving among the member. The funds these societies consists and the deposits

received from the public and the members.

There are two primary types of agricultural service cooperatives,

supply cooperative and marketing cooperative. Supply cooperatives supply their

members with inputs for agricultural production, including seeds, fertilizers, fuel,

and machinery services. Marketing cooperatives are established by farmers to

undertake transformation, packaging, distribution, and marketing of farm products

(both crop and livestock). Farmers also widely rely on credit cooperatives as a

source of financing for both working capital and investments.

14

http://en.wikipedia.org/wiki/Credit_union

http://en.wikipedia.org/wiki/Agricultural_marketing

http://en.wikipedia.org/wiki/Agricultural_machinery

http://en.wikipedia.org/wiki/Fuel

http://en.wikipedia.org/wiki/Fertilizers

http://en.wikipedia.org/wiki/Seeds

3.2 HISTORY OF 0.1725 VEERAKERALAMPUDUR PRIMARY

AGRICULTURAL CO-OPERATIVE CREDIT SOCIETY

0.1725 Veerakeralampudur primary agriculture co-operative society was

registered on 01-03-1968 and the bank commenced its operation from 01-09-

1968. It was started with the membership of 21,409 in individual person and 52 in

Government. The share capital of RS 21,409 (one rupee per share) in individual

person and 52 (one rupee per share) in government.

3.3 OBJECTIVES OF 0.1725 VEERAKERALAMPUDUR AGRICULTURAL

CO-OPERATIVE CREDIT SOCIETY

The 0.1725 Veerakeralampudur primary agricultural co-operative

credit society has the Following general and other objectives.

1 .GENERAL OBJECTIVES

Providing loans and advances for agriculture operation, development

of fisheries, livestock farming, silk farming, small industries, inputs and

implements Marriage medical and funeral expense etc.

2 .OTHER OBJECTIVES

1) Accepting deposits from the public.

2) Purchasing agricultural inputs and implements in bulk and distributing

the same to the members.

3) Making necessary arrangement to sell agricultural products and other

products produced by the members.

4) Providing warehouse facilities to protect the agricultural material and

other materials procured for meeting the requirements of members.

15

3.4 SHARE CAPTIAL

The members and Govt. Contribute society share capital. A Person

becomes a member of a bank by buying shares. Every member has to contribute

towards the share capital. The liability of the member is limited to the extenD of

the face value of the share held by them.

3.5 BORROWINGS

The total borrowings to the bank both by the way of deposits (or)

otherwise and whether from members or others must not at any time exceed

five time of paid up share capital. The borrowing of funds includes borrowing

from the Tirunelveli central co-operative society and national govt.

Development Corporation.

3.6 LOANS AND ADVANCES

The co-operative credit institution were established in India with the

twin objectives of

(a) Providing production loan at concessional rate for the farmers

(b) Promoting thrift by mobilizing the surplus which the farmers would get

from the production carried out of the loans given by the co-operative

societies.

This bank provides the following types of loans.

Short term loan

Medium term loan

Jewel loan

Loan in Consumer

Loan in Self-help group loan

16

3.6.1 SHORT TERM LOAN

Short term loans are granted for period less than a year. It includes a

jewel loan, kisan cash credit, and deposit loan.

3.6.2 MEDIUM TERM LOAN

It is granted for a period of more than one year but not exceeding five

years. It is also called a s inter mediate credit.

3.6.3 JEWEL LOAN

Jewels and ornaments are considered to be security value on which

money can be borrowed. Jewels means the name given to ornaments of metals,

stones, (or) synthetic materials as the person for sake of ornaments for magical

production or as a symbol of rank, wealth or prestige.

3.6.4 LOAN IN CONSUMER

The members can get loan from the society for the purpose of buying

the goods such as radio, television, washing machine, by-cycle, motorcar and

the like. It is also one of the short-term loans.

3.6.5 LOAN IN SELF HELP GROUP

These loans should be given to the women to involved in the self-help

group. The interest rate for this loan 12% these loans should be given by the

society after 6 months when the work started.

17

3.7 INTEREST IN INCOME

Interest income is the amount interest received from the loan and

advance offered to members and non-members. Higher the interest received

shows higher the financial soundness of the society.

3.8 INTEREST IN EXPENDITURE

Interest Expenditure is the total amount of interest paid by the bank to

the deposit holders and central co-operative society for the amount borrowed

from the central co-operative society outstanding. Any increase in the interest

shows the increase in expenditure of the society

3.9 PROFIT OR LOSS

Profitability is the indications of efficiency or in efficiency with which the

operations of the society are carried on. Net profit is the excess of income over

all administrative, selling and distribution and other related expenses.

18

LOAN ISSUED BY 0.1725 VEERKERALAMPUDU PRIMARY AGRICULTURAL CO-OPERATIVE CREDIT SOCIETY

Loans issued comprise of members loans, Jewel loans, Agricultural loans, Deposit loan, Staff loan share Capital repayable on demand and term loans. The total loans issued made by the 0.1725 Veerakeralampudur primary Agricultural co-operative credit society during the period of past five year 2005-06 to 2009-10 had been collected.

TABLE 3.1

LOANS ISSUED

Year Loan issued (Rs in Lakhs)

Increase or decrease

Trend Percentage

2005-06 82.77 --- 100%

2006-07 59.42 -23.35 71.79%

2007-08 84.26 24.84 101.8%

2008-09 112.96 28.70 136.47%

2009-10 118.89 5.93 143.64%

Source :Computed from the records of the 0.1725 Veerakeralampudur primary

Agricultural co-operative credit society for 2005-06 to 2009-10.

The above table reveals that in the year 2005-2006 the loan issued by credit

society of Rs 82.77 Lakhs(100%), 2006-2007 loans issued of Rs 59.42 Lakhs (71.79%)

year 2007-08 loans issued of Rs 84.26 lakhs (101.80%) and year 2008-09 loans

issued of Rs 112.96 lakhs (136.47%) and year 2009-10 loans issued of Rs 118.89

lakhs (143.64%).

The Loan issued for the 0.1725 v.k.pudur Primary Agricultural co-operative

credit societies are depicted in the following figure 3.1

19

Figure 3.1

Loan Issued

2005-06 2006-07 2007-08 2008-09 2009-10

-40

-20

0

20

40

60

80

100

120

140

Loan issued (Rs in Lakhs)Increase or decrease

20

LOAB RECEIVED BY 0.1725 V.K.PUDUR PACCS

Loans Received from the Members Loans, Jewel loans, Agricultural Loans

women mentor Loans, member share capital loans, Deposit loans, staff loans

repayable on demand and term loans. The total loans received made by the 0.1725

Veerakeralampudur primary Agricultural co-operative credit society during the

period of past five year 2005-06to 2009-10 had been collected.

TABLE 3.2

LOAN RECEIVED

Year Loan received (Rs in Lakhs)

Increase or decrease

Trend Percentage

2005-06 75.06 --- 100%

2006-07 65.27 -9.79 86.96%

2007-08 95.52 30.25 127.25%

2008-09 90.96 -4.56 121.18%

2009-10 101.28 10.32 134.98%

Source: Computed from the records of the 0.1725 Veerakeralampudur primary Agricultural co-operative credit society for 2005-06 to 2009-10.

The above table reveals that in the year 2005-06 the loan received in credit society of Rs 75.06 lakhs (100%), 2006-07 the loan received of Rs 65.27 lakhs (86.96%), 2007-08 the al loan received of Rs 95.52 lakhs (127.25%), 2008-09 the loan received of Rs 90.96 lakhs (121.18%) and 2009-10 the loan received of Rs 101.28 lakhs (134.98%).

The Loan Received for the 0.1725 v.k.pudur Primary Agricultural

co-operative credit society are depicted in the following figure 3.2

21

FIGURE 3.2

LOAN RECEIVED

2005-06 2006-07 2007-08 2008-09 2009-100

20

40

60

80

100

120

75.0665.27

95.52 90.96101.28

Loan received (Rs in Lakhs)

22

GROSS PROFIT BY 0.1725 V.K.PUDUR PACCS

Trading Account into account the cost of goods sold during the period on the

one hand and on the other, the value of goods sold. It the sale value is higher than

the cost of goods sold the difference is the gross profit and in the cost of goods sold

value is higher than the sales the difference is the gross loss. The total gross profit

or less made by the 0.1725 Veerakeralampudur primary Agricultural co-operative

credit society during the period of the past five years from 2005-06 to 2009-10 had

been collected.

TABLE 3.3

GORSS PROFIT

Year Gross profit (Rs in Thousand)

Percentage

2005-06 81.21 13.82%

2006-07 127.22 21.65%

2007-08 188.71 32.12%

2008-09 106.71 18.14%

2009-10 83.81 14.27%

TOTAL 1274.07 100%


The above table reveals that in the year 2005-06 the gross profit of credit society of Rs 81-21 thousand (13.82%), 2006-07 the gross profit of Rs 127-22 thousand (21.65%), 2007-08 the gross profit Rs 188-71 thousand (32.12%), 2008-09 the gross profit Rs 106.56 thousand (18.14%) and 2009-10 the gross profit Rs 83-81 thousand (14.27%).

The Gross profit for the 0.1725 v.k.pudur Primary Agricultural co-operative credit society are depicted in the following figure 3.3

23

FIGURE 3.3

GORSS PROFIT

2005-06 2006-07 2007-08 2008-09 2009-10

81.21

127.22

188.71

106.71

83.81

0.1382 0.2165 0.3212 0.1814 0.1427

Gross profit (Rs in Thousand) Percentage

24

NET PROFIT OR LOSS BY 0.1725 V.K.PUDUR PACCS

The gross profit or loss which is a profit or loss made on purchasing selling the goods. All the expenses are charged only of the profit and loss account. If the business earns other income is non- operating incomes or gain and incur non-operating expenses or loss. Net Profit or Loss = Gross profit or loss all other incomes and gains all other expenses and loss. The net profit or loss made by the 0.1725 Veerakeralampudur primary Agricultural co-operative credit society during the period of the past five years from 2005-06 to 2009-10 had been collected.

TABLE 3.4

NET PROFIT OR LOSS

Year Net Profit (Rs in

Thousand)

Percentage

2005-06 51.56 4.05%

2006-07 -359.79 28.24%

2007-08 1854.45 145.55%

2008-09 -241.16 -18.93%

2009-10 -30.99 -2.43%

Total 1274.07 100%


The above table reveals that in the year 2005-06 the net profit of the credit society of Rs 51.56 thousand (4.05%), 2006-07 the net loss of Rs-359.79 thousand (-28.24%), 2007-08 the earned (145.55) net profit Rs 1854.45 thousand (145.55%), 2008-09 the net loss of Rs-241.16 thousand (-18.93), and 2009-10 the net loss of Rs-30.99 thousand (-2.43).

The Net Profit or Loss for the 0.1725 v.k.pudur Primary Agricultural co-operative credit society are depicted in the following figure 3.4

25

FIGURE 3.4

NET PROFIT OR LOSS

2005-06

2006-07

2007-08

2008-09

2009-10

-500

0

500

1000

1500

2000

Net Profit (Rs in Thousand)

Net Profit (Rs in Thousand)

26

CASH IN BALANCE SHEET BY 0.1725 V.K.PUDUR PACCS

The cash is very important of the own Business and life. The Total cash in Balance sheet of the cash in hand and bank deposit amount of the total cash. The total cash in Balance sheet the made 0.1725 Veerakeralampudur primary Agricultural co-operative credit society during the period of the past five years from 2005-06 to 2009-10 had been collected.

TABLE 3.5

CASH

Year Cash (Rs in Lakhs) Percentage

2005-06 0.50 3.44%

2006-07 3.14 21.61%

2007-08 1.53 10.53%

2008-09 2.88 19.82%

2009-10 6.48 44.60%

Total 14.53 100%

Source: Computed from the records of the 0.1725 Veerakeralampudur primary


The above table reveals that in the year 2005-06 the total cash of the credit

society Rs 0.50 lakhs (3.44%), 2006-07 the earned total cash of Rs 3.14 lakhs

(21.61% , 2007-08 the earned total cash of Rs 1.53 lakhs (10.53%), 2008-09 the

earned total cash of Rs 2.88 lakhs (19.82%) and 2009-10 the earned total cash of Rs

6.48 lakhs (44.60%).

The Cash in balance sheet for the 0.1725 v.k.pudur Primary Agricultural co-

operative credit society are depicted in the following figure 3.5

27

FIGURE 3.5

CASH

2005-06

2006-07

2007-08

2008-09

2009-10

Total

0 2 4 6 8 10 12 14 16

0.5

3.14

1.53

2.88

6.48

14.53

0.0344

0.2161

0.1053

0.1982

0.446

1

Percentage Cash (Rs in Lakhs)

28

TOTAL INVESTMENT BY 0.1725 V.K.PUDUR PACCS

It a business house held a large number of Investments in various securities.

The credit Societies in investment of the share in co-operative Institution,

Investment with TCC Bank, and other investment. The total investment made by

the 0.1725 Veerakeralampudur primary Agricultural co-operative credit society

during the period of the past five years from 2004-05 to 2009-10 had been

collected.

TABLE 3.6

TOTAL INVESTMENT

Year Total

Investment (Rs

in lakhs)

Increase or

Decrease

Trend

Percentage

2005-06 10.46 --- 100%

2006-07 10.51 0.05 100.48%

2007-08 11.17 0.66 106.79%

2008-09 11.68 0.51 111.66%

2009-10 12.36 0.68 118.16%


The above table reveals that in the year 2005-06 the total investment in credit society of Rs 10.46 lakhs (100%), 2006-07 total investment of Rs 10.51 lakhs (100.48%), 2007-08 the total investment of Rs 11.17 lakhs (106.79%), 2008-09 total investment of Rs 11.68 lakhs (111.66%) and 2009-10 the total investment of Rs 12.36 lakhs (118.16%).

The Total Investment for the 0.1725 v.k.pudur Primary Agricultural co-operative credit society are depicted in the following figure 3.6

29

FIGURE 3.6

TOTAL INVESTMENT

2005-06 2006-07 2007-08 2008-09 2009-100

2

4

6

8

10

12

14

10.46 10.5111.17

11.6812.36

0.050.66 0.51 0.68

Total Investment (Rs in lakhs) Increase or Decrease

30

TOTAL LOAN BY 0.1725 V.K.PUDUR PACCS

The loans with providing production loans at concessional rate for the

farmer. The loans are useful of farmer and businessman. The loans comprise of the

members loans. Jewel loans, Deposit loan fixed Deposit, Member Agricultural loans,

staff loans. The total loans made by the 0.1725 Veerakeralampudur primary

Agricultural co-operative credit society during the period of the past five years from

2006-06 to 2009-10 had been collected.

Table 3.7

Total Loans

Year Total loans (Rs in lakhs)

Increase or Decrease

Trend Percentage

2005-06 68.98 -- 100%

2006-07 63.14 -5.84 91.53%

2007-08 52.96 -10.18 76.77%

2008-09 72.87 20.91 114.33%

2009-10 92.48 13.61 134.06%



The above table reveals that in the year 2005-06 the total loan amount

by credit society of Rs 68.98 lakhs (100%), 2006-07 the total Loans of Rs 63.14lakhs

(17.71%), 2007-08 the total Loans of Rs 52.96 lakhs (91.53%), 2008-09 the total

Loans of Rs 72.87 lakhs (114.33%) and 2009-10 the total Loans of Rs 92.48 lakhs

(134.06%) .

The Total Loans for the 0.1725 v.k.pudur Primary Agricultural co-operative

credit society are depicted in the following figure 3.7

31

FIGURE 3.7

TOTAL LOANS

2005-06 2006-07 2007-08 2008-09 2009-10

-20

0

20

40

60

80

100

68.9863.14

52.96

72.87

92.48

-5.84-10.18

20.9113.61

Total loans (Rs in lakhs) Increase or Decreases

32

FIXED ASSETS BY 0.1725 V.K.PUDUR PACCS

Fixed assets are the properties acquired for permanent use in the business.

The Business earns its revenue by making use of these fixed assets. Value of

Godown, furniture, library books strong room door etc. The fixed assets made by

the 0.1725 Veerakeralampudur primary Agricultural co-operative credit society


collected.

TABLE: 3.8

FIXED ASSETS

Year Fixed Assets (Rs in

lakhs)

Increase or

Decrease

Trend

Percentage

2005-06 3.19 --- 100%

2006-07 3.29 0.10 103.13%

2007-08 3.29 --- 103.13%

2008-09 3.32 0.03 104.07%

2009-10 3.35 3.35 105%


The above table reveals that in the year 2005-06 the total fixed assets of credit society of Rs 3.19 lakhs (19.40%), 2006-07 total value of fixed assets of Rs 3.29 lakhs (20.01%),2007-08 the total value of fixed assets of Rs 3.29 lakhs (20.01%), 2008-09 the total value of fixed assets of Rs 3.32 lakhs (20.20%) and 2009-10 the total value of fixed assets of Rs 3.35 lakhs (20.38%).

The Fixed Assets for the 0.1725 v.k.pudur Primary Agricultural co-operative


33

FIGURE 3.8

FIXED ASSETS

2005-06 2006-07 2007-08 2008-09 2009-10

3.19 3.29 3.29 3.32 3.35

0.1 0.03

3.35 Fixed Assets (Rs in lakhs) Increase or Decreases

34

PENDING REALISAION BY 0.1725 V.K.PUDUR PACCS

The total Pending Realisation comprise of the Interest accrued, Interest

overdue Misc. Income accrued, Govt. prepaid dividend, Interest on closed loan,

Trade Income due. The total Pending Realisation made by of the 0.1725


period of the past five years from 2005-06 to 2009-10 had been collected.

TABLE: 3.9

PENDING REALISAION

Year Pending Realisation (Rs in lakhs)


Trend Percentage

2005-06 7.07 -- 100%2006-07 7.59 0.52 107.35%2007-08 2.00 -5.59 28.28%2008-09 3.68 1.68 52.03%2009-10 5.96 2.28 84.30%



The above table reveals that in the year 2005-06 the total Pending

Realisation in of credit society Rs 7.07 lakhs (100%), 2006-07 the total Pending

Realisation of Rs 7.59 lakhs (107.35%), 2007-08 the total Pending Realisation of Rs

2.00 lakhs (28.28%), 2008-09 the total Pending Realisation of Rs 3.68 lakhs (52.03%)

and 2009-10 the total Pending Realisation of Rs 5.96 lakhs (84.30%).

The Pending Realisation for the 0.1725 v.k.pudur Primary Agricultural


35

FIGURE 3.9

PENDING REALISATION

2005-06 2006-07 2007-08 2008-09 2009-10

-6

-4

-2

0

2

4

6

8

Pending Realisation (Rs in lakhs)Increase or Decreases

36

SUNDRY DEBTORS BY 0.1725 V.K.PUDUR PACCS

The person who are at present in debt to it .Might refer to a company’s

customers who rarely make purchases on credit and the amount. The account are

kept in a sundry debtor’s. The sundry debtor made by the 0.1725



TABLE 3.10

SUNDRY DEBTORS

Year Sundry Debtors (Rs in Lakhs)

Percentage

2005-06 3.49 2.66%2006-07 9.63 7.33%2007-08 40.99 31.21%2008-09 50.86 38.73%2009-10 26.36 20.07%

Total 131.33 100%Source: Computed from the records of the 0.1725 Veerakeralampudur primary


The above table reveals that in the year 2005-06 the Sundry Debtor in Credit

Society of Rs 3.49 lakhs (2.66%), 2006-07 the Sundry Debtor of Rs 9.63 lakhs

(7.33%), 2007-08 the Sundry Debtor of Rs 40.99 lakhs (31.21%), 2008-09 the Sundry

Debtor of Rs 50.86 lakhs (38.73%) and 2009-10 the Sundry Debtor of Rs 26.36 lakhs

(20.07%).

The Sundry Debtors for the 0.1725 v.k.pudur Primary Agricultural co-

operative credit society are depicted in the following figure 3.10

37

FIGURE 3.10

SUNDRY DEBTORS

2005-06

2006-07

2007-08

2008-09

2009-10

Total

3.49

9.63

40.99

50.86

26.36

131.33

0.0266

0.0733

0.3121

0.3873

0.2007

1

Percentage Sundry Debtors (Rs in Lakhs)

38

DEPOSITS AND BORROWINGS BY 0.1725 V.K.PUDUR PACCS

The total deposits and Borrowings to the credit society both by the way of

deposit or otherwise and whether from members or other must not at any time

exceed five time of paid up share capital. The total deposit and Borrowing mad by

of the 0.1725 Veerakeralampudur primary Agricultural co-operative credit society


collected.

TABLE 3.11

DEPOSITS AND BORROWINGS

Year Deposits and Borrowings Realisation( Rs in lakhs)


Trend Percentage

2005-06 65.34 --- 100%

2006-07 72.43 7.09 110.85%

2007-08 81.12 8.69 124.15%

2008-09 105.32 24.20 161.18%

2009-10 116.02 10.70 177.56%


The above table reveals that in the year 2005-06 the total Deposits and Borrowings in credit society of Rs 65.34 lakhs (100%), 2006-07 the total Deposits and Borrowings of Rs 72.43 lakhs (110.85%), 2007-08 the total Deposits and Borrowings of Rs 81.12 lakhs (124.15%), 2008-09 the total Deposits and Borrowings of Rs 105.32 lakhs (161.18%) and 2009-10 the total Deposits and Borrowings of Rs 116.02 lakhs (177.56%) .

The Deposits and Borrowing for the 0.1725 v.k.pudur Primary Agricultural


39

FIGURE 3.11

DEPOSITS AND BORROWING

2005-06 2006-07 2007-08 2008-09 2009-100

20

40

60

80

100

120

65.3472.43

81.12

105.32116.02

7.09 8.69

24.2

10.7

Deposits and Borrowings Realisation( Rs in lakhs)Increase or Decrease

40

SHARE CAPTIAL BY 0.1725 V.K.PUDUR PACCS

The member and Government contribute society share capital. A Person

becomes a member of a bank by buying shares. Every member has to contribute

towards the share capital. The total share capital mad by of the 0.1725



TABLE 3.12

SHARE CAPITAL

Year share capital (Rs in Lakhs)

Percentage

2005-06 3.91 8.46%2006-07 4.08 8.83%2007-08 8.74 18.91%2008-09 18.07 39.11%2009-10 11.41 24.69%Total 46.21 100%


The above table reveals that in the year 2005-06 the share capital in credit society of Rs 3.91 lakhs (8.46%), 2006-07 the share capital in credit society of Rs 4.08 lakhs (8.83%), 2007-08 the share capital in credit of Rs 8.74 lakhs (18.91%), 2008-09 the share capital in credit of Rs 18.07 lakhs (39.11%) and 2009-10 the share capital in credit of Rs 11.41 lakhs (24.69%).

The Share capital for the 0.1725 v.k.pudur Primary Agricultural co-operative


41

FIGURE 3.12

SHARE CAPTIAL

2005-06 2006-07 2007-08 2008-09 2009-1002468

101214161820

Year

Shar

e ca

ptial

(Rs i

n La

khs)

42

PAYMENT IN PENDING BY 0.1725 V.K.PUDUR PACCS

The total payment in pending is comprise of the Interest due, Estt. &

contingencies due, sales tax due supervision fees, Trade charges due. The total

payment in pending made by of the 0.1725 Veerakeralampudur primary

Agricultural co-operative credit society during the period of the past five years from

2005-06 to 2009-10 had been collected.

TABLE: 3.13

PAYMENT IN PENDING

Year Payment in Pending

(Rs in lakhs)

Increase or

Decrease

Trend

Percentage

2005-06 6.15 --- 100%

2006-07 1.56 -4.59 25.36%

2007-08 1.96 0.40 31.86%

2008-09 4.04 2.08 65.69%

2009-10 3.01 -1.03 48.94%



The above table reveals that in the year 2005-06 the total Payment in

Pending of Credit society of 6.15 lakhs (100%), 2006-07 the Payment in Pending of

Rs 1.56 lakhs (25.36%), 2007-08 the Payment in Pending of Rs 1.96 lakhs (31.86%),

2008-09 the Payment in Pending of Rs 4.04 lakhs (65.69%) and 2009-10 the

Pending in Payment of Rs 3.01 lakhs (48.94%).

The Payment in Pending the 0.1725 v.k.pudur Primary Agricultural co-

operative credit society is depicted in the following figure 3.13

43

FIGURE 3.13

PAYMENT IN PENDING

2005-06 2006-07 2007-08 2008-09 2009-10

-6

-4

-2

0

2

4

6

8

Payment in Pending (Rs in lakhs)Increase or Decrease

44

SUNDRY CREDITORS BY 0.1725 V.K.PUDUR PACCS

Sundry creditors want to know the financial position of the concern in

which they have invested their money. The depend only on proper accounts.

Miscellaneous small infrequent suppliers that are not assigned individual ledger

account but are classified as a group. The sundry creditors made by of the 0.1725



TABLE: 3.14

SUNDRY CREDITORS

Year Sundry Creditors (Rs in lakhs)


Trend Percentage

2005-06 7.24 -- 100%

2006-07 6.34 -0.90 87.56%

2007-08 6.48 0.14 89.50%

2008-09 6.63 0.15 91.57%

2009-10 9.47 2.84 130.8%


The above table reveals that in the year 2005-06 the Sundry creditor in credit society of Rs 7.27 lakhs (100%), 2006-07 the Sundry creditor of Rs 6.34 lakhs (87.56%), 2007-08 the Sundry creditor of Rs 6.48 lakhs (89.50%), 2008-09 the Sundry creditor of Rs 6.63 lakhs (91.57%), and 2009-10 the Sundry creditor of Rs 9.47lakhs (130.8%) .

The Sundry creditor or the 0.1725 v.k.pudur Primary Agricultural co-operative credit society are depicted in the following figure 3.14

45

FIGURE 3.14

SUNDRY CREDITORS

2005-06

2006-07

2007-08

2008-09

2009-10

0123456789

10

Sundry Creditors (Rs in lakhs)

Year

sund

ry cr

edito

rs( R

s in

lakh

s)

46

DEBTS RESERVE AND RISK FUND BY 0.1725 V.K.PUDUR PACCS

Bad Debts represent those debts which have become definitely. Bad debts

and risk fund is an actual has on the Business and as the amount is irrecoverable by

written off from account of debtors. The Bad Debts Reserve and Risk fund made by

of the 0.1725 Veerakeralampudur primary Agricultural co-operative credit society


collected.

TABLE 3.15

DEBTS RESERVE AND RISK FUND

Year Debts reserve and Risk Fund (Rs in lakhs)


Trend Percentage

2005-06 0.98 --- 100%

2006-07 0.98 --- 100%

2007-08 0.99 0.01 101%

2008-09 1.39 0.40 141.85%

2009-10 1.70 0.31 173.46%

Source: Computed from the records of the Computed from the records of the

0.1725 Veerakeralampudur primary Agricultural co-operative credit society for

2005-06 to 2009-10.

The above table reveals that in the year 2005-06 the Debts Reserve and Risk

in Credit Society of 0.98 lakhs (100%), 2006-07 the Debts Reserve and Risk Fund of

Rs 0.98 lakhs (100%), 2007-08 the Debts Reserve and Risk Fund of Rs 0.99 lakhs

(101%, 2008-09 the Debts Reserve and Risk Fund of Rs 1.39 lakhs (141.85%) and

2009-10 the Debts Reserve and Risk Fund of Rs 1.70 lakhs (173.46%).

The Debts Reserve and Risk Fund or the 0.1725 v.k.pudur Primary

Agricultural co-operative credit society are depicted in the following figure 3.15

47

FIGURE 3.15

DEBTS RESERVE AND RISK FUND

2005-06 2006-07 2007-08 2008-09 2009-100

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

Debts reserve and Risk Fund (Rs in lakhs)Increase or Decrease

48

SUMMARY OF FINDINGS AND SUGGESTIONS AND CONCLUSION

CHAPTER- IV

SUMMARY OF FINDINGS AND SUGGESTIONS AND

CONCLUSION

4.1 INTRODUCTION

This study is an attempt to evaluate the financial appraisal 0.1725

Veerakeralampudur primary Agricultural co-operative credit society. The study

beings with an overview of co-operative society. It deals with the history of co-

operative banking in India, Tamilnadu and Tirunelveli district. It measures

particularly the growth and working of the credit societies.

The various types of deposits mobilize and types of loans granted by the

credit society. The financial position and performance of the credit society have

been studied is detail.

The approach to the study is both descriptive and analytical summary of

findings problems and suggestions for improvement of the credit society are

presented in this chapter.

0.1725 Veerakeralampudur primary Agricultural co-operative credit society

was registered on 01-03-1968 and the commenced its operation from 01-09-1968

onwards. It is in situated in v.k.pudur. The main object of the credit society was

rending loans and advance to members and non- member. Societies have three

type of deposit namely saving deposits, recurring deposits, fixed deposits.

49

This society provides the following loans, short term loans, medium term

loans, jewel loans member loans, agricultural jewel loans, self-help group loans.

Medium term loans are granted for period of more than one years but not

exceeding five years. The member and government contribute the credit society in

share capital.

4.2 FINDINGS

It is clear that the amount of loan issued made by the credit society has

been increased from Rs 82.77 lakhs (2005-06) to Rs118.89 lakhs (2009-10)

It is revealed from that the amount of loans received made by the credit

society has been increased from RS 75.06 lakhs(2005-06)to Rs 101.28

lakhs(2009-10)

It is interned that the credit society earned gross profit increased in the

year 2007-08 amounted to Rs 188.71 thousand.

It is clear that the credit society earned net profit increased in the year

2007-08 amounted to RS 1854.45 thousand.

It is noted that the amount of cash in balance sheet made by the credit

society had been increased from in the year Rs 0.50 lakhs (2005-06) to

Rs 6.48 lakhs (2009-10).

It is revealed that the amount of total investment made by the credit

society has been increased form Rs 10.46 lakhs (2005-06) to Rs 12.36 Lakhs

(2009-10).

It is inferred that the credit society in total loan in the lowest amount of Rs

52.96 lakhs (2007-08).

It is clear that the credit society in total value fixed assets increases in the

year 2009-10 amounted Rs 3.35 lakhs.

50

An analysis regaling the credit society in total pending Realisation in the

lowest amount of Rs 2 lakhs (2007-08).

It is found that above table that the amount of sundry debtors made by

the credit society has been increased from Rs 50.86 lakhs 50.89% (2008-

09).

It is inferred that the credit society in total deposit and borrowing made by

the credit society has been increased from Rs116.02 lakhs (2009-10).

It is clear that the credit society in total share capital increased in the year

2008-09 amount of Rs 18.07 lakhs (39.11%).

It is revealed that above table that the amount of total pending made by

the credit society has been increased from Rs 6.15 lakhs (2005-06).

It is inferred that the credit society in sundry creditor increased in the year

2009-10 amount Rs 9.47 lakhs.

It is noted that the credit society in debts reserve and risk fund increase in

the year 2009-10 amount of Rs 1.70 lakhs.

51

5.3 SUGGESTIONS

Based on the study the researcher has suggested the following

recommender for the impartment of Agricultural co-operative credit society in the

study area.

The Primary Agricultural co-operative credit society in the mainly help of

the farmer individual persons and other.

The Primary Agricultural co-operative credit society freely performing the

function.

The credit society officials should see that the amount of loan is used for

the purpose for which loan is obtained.

Jewel loan interest is not paid.

The area of operation of the Primary Agricultural co-operative credit

society should be expanded.

Number of installment may be increased as these are frequent crop

failure.

Proper notice should be given for the collection of interest with in the

stipulated time.

The systems followed by this credit society should be modernized.

The repaying capacity of the borrowing should be ascertained before

granting loans.

The state government should compensate this bank in respect of the

loans waivers.

Better the Primary Agricultural co-operative credit society is provide

credit card facilities.

52

CONCLUSION

The Financial Performance of 0.1725 Veerakeralampudur Primary

Agricultural co-operative credit society have been analyzed and which have to be

managed efficiently. The above suggestion are implemented by the authorities

concerned, the credit society would be able to keep peace with other

developmental banking systems. Findings of the study will enable the officials of

the sector to formulate the policies for the betterment of co-operative credit

society.

53

Date post:	31-Oct-2014
Category:	Documents
Upload:	royal-raja-raja
View:	55 times
Download:	10 times

Cooperative

Documents