ProjectLoans and advances with special reference to D C S

8/11/2019 ProjectLoans and advances with special reference to D C S

1/84

Loans and advances with special reference to D C S

M.COM NIPGS SHIMOGA Page 1

CHAPTER 1

INTRODUCTION

In the beginning of the existence of an existence of human beings, needs were

simple in nature and every individual produced all that were necessary to sustain life. He

was produced his own food of animal flesh and vegetables. He has prepared his own

clothing and his own shelter.

After this stage, Barter system came into existence. In fact, Barter system refers to

trade with exchange of goods in the absence of money. Say for example, certain quantity

of Paddy is exchanged for the same quantity of Wheat. At this point of time, the concept

of dependency was emerged in the routine life of human beings. Due to their

dependency, the concept of co-operation was born.

In the course of time, people settled down in different occupations and with

specialisation, the exchange of goods became wider. The money was introduced in

trading which was widely accepted for payment. As money started getting importance,

co-operation was going hand in hand with it.

Therefore, co-operation is an important thing which plays an important role in all

types of goods and services and in settlement of debts. Money had given and received

without reference to the standing of the person who offers it in payment.

According to Dr. D.H Robertson money is anything which is widely accepted in

payment for goods or in discharge of other kind of business obligations". This is the

manner in which money has extended into the co-operation.


2/84



Statement of the problem and need for the study

In the current scenario, every co-operative society has to face keen competition

and challenges in the trading and commercial sector. Moreover, these have to workresponsibly along with transparency in accordance with the rules, regulations and

principles of the Co-operative Act. DURGIGUDI CO OPERATIVE SOCIETY has

completed its useful service of nine years, no attempt of making any project report on

this society have been made so as to make it clear about the attitude of customers in

respect of its operation. On this background, the present study could be essential to the

DURGIGUDI COOPERATIVE SOCIETY for its further development.

Objectives of the study

A.To extends credit facilities or financial assistance to the members at reasonable

rate of interest.

B.To provide loans to increase agricultural production, animal husbandry, poultry

and agricultural equipments.

C.To provide loans to improve irrigation facilities to dry lands.

D.To provide co-operative education and publicity of society.

E. To border or extend facilities of co-operative society to its members.

Data Collection

The data which are collected for the preparation of this project report include:

a) Primary Data

b) Secondary Data

The primary data are collected through personal interview with the Chief

Executive Officer (CEO) DURGIGUDI CO OPERATIVE SOCIETY and with the

staff to obtain thorough information. The survey is conducted through questionnaire. In

fact, a questionnaire has been prepared and passed to the selected customers on the


3/84



random basis to avoid bias in the collection and analysis of data about the Durgigudi Co

Operative Society.

Sample Plan

The respondents for this study are the persons who are in connection with the

Durgigudi CoOperative Society Shivamogga. These persons are considered from the

different part of SHIVAMOGGA town.

Sample Size

The respondents in this study are the persons who are the customers of Durgigudi

CoOperative Society Shivamogga. The study is Initiatively planned to 50 respondents.

These respondents have been obtained through the random sampling method.

Scope of the study

This project report has been dealt with the various aspects relating to the

Durgigudi CoOperative Society Shivamogga. The study begins with the collection of

facts which determine how the concept of co-operation is born. It (I.e., the study) hascovered the various information relating to the types of deposits and credit facilities are

available In Durgigudi Co Operative Society Shivamogga and how much of the loans

provided has been recovered. For this purpose, the relevant data of the past five years

have been obtained and also the opinions of respondents have been analysed.

Data Analysis

Statistical tools like percentages, tables, charts are used for analysis and

interpretation of the collected data.


4/84



Limitations of the study

There has been certain limitations are found while preparing the project report.

They are as follows,

1. Members are selected on random basis. Therefore, they may not represent the

population.

2. Some members were remain fear to express their opinion about co-operative services.

3. The study entitles the limitation of time factor. Due to this limitation the project may

lacks in detailed information.

4. Only the data of past five years (Since the year 2008-09 to 2012-13) have been

obtained for the purpose of study.


5/84



CHAPTER-2

INDUSTRY PROFILE

INTRODUCTION

MEANING

DIFINITION

CHARECTERISTICS

PRINCIPLES

STRUCTURE

FUNCTIONS


6/84



1.1 INTRODUCTION TO CO-OPERATIVE SOCIETIES

Introduction

Co-operative societies are one of the forms of business organization. They are

formed all over the world. Generally, they are formed by the working and lower middle

class people who constitute the weaker sections of the society for the purpose of

safeguarding their interest against exploitation by powerful businessmen. Like, the

capitalistic form of organization which has the motto "all for himself", co-operative

societies follow the motto "each for all, and all for each", the principal theory of true co-

operative society is the elimination of profit the idea begin to provide goods and service

to members at cost.

Thus, poor farmers may form co-operative credit societies to get cheap credit

facilities and protect themselves against the exploitation of the moneylenders. Similarly,

small producers may form co-operative marketing societies to sell their products at

favorable prices and protect themselves against the exploitation to the traders.

Consumers belonging to the middle and low income group may form consumer's

co-operative societies so as to get essential commodities at fair price and protect

themselves against the exploitation by the retailers.

Co-operation is important thing, which plays an important role in all for goods and

services and in settlement of debts; money is given and received without Reference to the

standing of the person who offers to in payment.

The idea behind a co-operative society is that an isolated and powerless man, in

association with others, can lift himself as well as others out of weakness into strength, "

Co-operative (i.e., work together) for working out (i.e., Solving) your economic

problems is the theory of co-operation


7/84



1.2 Meaning of Co-operative Society

The word "co-operative' is derived from the Latin word co-operative. Co the

word means together and Operative means to work. In other words, co-operation meansto work together to achieve common purpose.

Co-operative societies are a type of business organizations on which individuals

generally belonging to the homogeneous group voluntarily associate together on the basis

of equality for the furtherance of their common economic interest.

In other words a co-operative society is a form of business origination, in which

economically weak persons voluntarily associate together as human begins, on the basis

of equality of opportunity and control, equity of distribution of profits and mutuality (i.e.,

self-help and mutual help) for the promotion of their common economic interests.

1.3 Definition of Co-operative Society

A "Co-operative society" means, a co-operative society registered under the co-operative societies Act, 1912 or 1959 under any law for the time begins in force in any

state for the registration of co-operative societies.

Co-operation has been defined in different ways by different authorities.

Some of the important definitions are as follows:

H. Calvert, defines co-operations as " a form of organization where is persons

voluntarily associate together as human begins on the basis of equality for the

promotion of the economic interest of themselves".

Dr. C.R.Fay, defines a co-operative society as "an association for the purpose of

joint trading originating among the weak and conducted always in an unselfish

spirit on such terms that all who are prepared to assume the duties of membership

may share in its rewards in proportion to the degree in which they make use of

their associations"


8/84



Mr. Talmakidefines a co-operative society as "an association of the weak who

gather together for a common economic need and try to if themselves and others

out of weakness into strength through Business organizations, conducted for the

common benefit of all who joint it".

According to Dr. K.N.KatjuCo-operation is self help as well as mutual help. It

is joint association or Enterprise of those who are not financially strong and are

enable stand on their own legs, and therefore, come together not with a view to

get profits but overcome disability arising out of want of adequate financial

resources and thus better their economic conditions".

Professor. Lamertobserves " Co-operation as an enterprise formed and directed

an association of users, applying within itself the rules of Democracy and directly

intended to server both its own members and community as whole".

1.4 Characteristics or Principles of Co-operative Society

The Main characteristics or principles of a co-operative society are as follows:-

1) Body Corporate

The Registration of a society under the co-operative societies Act renders it a

body corporate. It becomes entitles to enjoy certain privileges as are enjoyed by a

company on its incorporation. Among others, mention may be made of the followingprivileges:

1.The society becomes a body corporate

2.The society enjoys perpetual succession

3.The society has its own common seal

4.

The society can hold property in its name


9/84



5. The society can enter into contracts with other persons

6.The society can institute and defined suits on other legal proceedings

7.

The society can do all others necessary to carry on its activities with reference to

the object for which the society has been formed.

2) Voluntary Association

A Co-operative society is essentially a voluntary association of individuals. A

person is free to join a co-operative society as its member. Similarly, he is free to leave

the society any time by giving due notice to the society. Thus, there is no compulsion

either to become a member or to continue as a member.

3) Association Persons

A co-operative society is an association of persons, and not of capital. Individuals

join a co-operative society as human begins, and not as capitalists.

4) Unrestricted Membership

There is no limitation on the membership of a co-operative society. The number

of members of a co-operative society can be increased to an unlimited extent.

5) Equal Voting Rights

In a Co-operative society, each member has only one vote whatever may be the

number of shares held by him. "One member, one vote, and not One share one vote" is

the basic principle of a co-operative society. This principle enables the members to have

equal voice in the management of the society.

6) Democratic Management

Democratic management is the fundamental principle of a co-operative society.

As a co-operative operates on a local scale, generally, all the members attend the

meetings. Further at the meetings each member has only one vote. Again at the

meetings only those policies, which promote common interests, are laid down. Thus, the


10/84



day-today affairs of a co-operative society are conducted on the democratic principle of

"each for all, and all for each"

7) Service Motive

A Co-operative Society is formed primarily for the purpose of rendering

maximum services to its members, and not for earning maximum profits. Service, not

profit" is the main aim of a co-operative society.

8) Equity of Distribution of Profits

The principle of equity is adopted in the distribution of the profits of a co-

operative society. The entire profits of co-operative society are not distributed as

dividend among the members. A low rate of dividend, generally 6 % is allowed on the

capital contribution by the members. A portion of the profits is transferred to general

reserve. A small portion of the profits is used for the general welfare of the locality in

which the society is working. The rest of the profits of the society are distributed among

the members in proportion to their business with the society.

9) Liability

The liability of the members of a co-operative society may be limited. The

liability of the members is limited in the case of a limited co-operative society.

1.5 Formation of a Co-operative Society

In India, the formation and registration of co-operative societies if governed by

the provisions of the INDIAN CO-OPERATIVE SOCIETIES ACT OF 1912 or 1959

The State Co-operative society Act in force in various states.

Formation of a co-operative society, there should be at least ten members who are

bounded together by a common bond (i.e., belonging to the same locality, class or

occupation and having a common economic need). These members (called promoters)

should submit an application for registration to the Registrar of co-operative societies of

the state in which the society's office is to be located.


11/84



The application for registration should state:

The proposed name of the society

The aims and objects of the proposed society

Its area of operations

Particular of share capital proposed to be raised by issue of shares and

The nature of member's liability.

Further the application for registration should be accompanied by two copies of

the proposed bye-laws of the society. The bye-laws contain the rules for the internal;

working of the proposed society. The bye-laws are generally prepared in accordance with

the model bye-laws available with the Registrar concerned.

On receipt of the application for registration and the bye-laws, the registrar of co-

operative societies will examine them and if he is satisfied, will register the society and

will issue the certificate of registration. On registration the society comes into existence

and becomes a body corporate with a distinct legal entity, perpetual succession and a

common seal.

After its registration, the co-operative society admits new members and proceeds

to conduct the business for which it has been formed.

1.6 Classification of the Co-operative Societies in Indian

Cooperative societies may be classified in to different categories based on the

objectives, and purpose fir which they are formed and nature of activities they are

performing. When few cooperatives are formed to achieve to specific economic

objectives, others are came up with am objectives, others are came up with an objectives

of upliftment of social and economical status of its members. Based on that the following

ate the forms of co-operative societies which have developed in India.


12/84



(A) Consumer Cooperatives

(B) Producer Cooperatives

(C) Marketing Cooperatives

(D) Housing Cooperatives

(E) Credit Cooperatives

(F) Cooperatives Farming Societies

(A) Consumer Co-operatives

Consumers Co-operatives are formed with the objective of fulfilling need and

requirement of its member consumer by supplying goods and services at cheaper rate by

eliminating the middlemen. They develop relationship directly with the manufactures,

purchase the goods at wholesale price and sell them to member at comparatively less

then market price.

The profit margin which the wholesale and retailers are supposed to enjoy are pass

on to the members by the society, hence charges less price from the members without

compromising the quality.

(B) Producers Co-operatives

These types of cooperatives are formed to assist the manufactures/industrial units

in setting up, production and marketing their products. It procures plants and

machineries, raw materials and other necessary items for facilitate the member in

production of goods and services. It also, at times, takes the responsibility of marketing

the products produced by the manufactures. Small producers ate mainly benefited out if

this process. They are concentrating more and more on production and other are duly

taken care by cooperatives.


13/84



(C) Marketing Co-operatives

It is an established fact that many a small producers are not successful in their

projects because they lack marketing skill and network. Quality production and cheaprate do not come to their rescue in marketing. It is the marketing cooperative whose

business is the purchased all the goods purchase all the goods produced by the small

manufacturer and market them when market is favorable or at different places where

there is demand for the same. The producer benefited by selling and society by earning

commission from such sales.

(D) Housing Co-operatives

Affording to the basic need of a house o to have a land to construct a house is a

stupendous task on the part of a common man due to want of requisite fund, proper

facility, managerial ability and others. Housing co-operative society are those voluntary

association of members which engaged in acquiring land from general public, develop

the same, construct houses as per the requirement of members and transfer the ownership

in their favor.

(E) Credit Co-operatives

The very objective behind formation of a co-operative society is to make free the

people of down trodden society from the clutch of village money lender. In the name f

financial support, they have exploited the poor and needy people in many a ways, thus

poorer were not given opportunity to improve their socio-economic stand. Credit

cooperative come in their way. They have been assisting the poor farmers and needy

people of the society with the provision of soft loans, easy loans at comparatively lower

rate of interest and easy terms and conditions. In this process atheist, exploitation of

money lenders has been checked to a great extent.


14/84



1.7 Credit Co-operatives are of two types namely

Agricultural credit co-operatives, and

Non-agricultural credit co-operatives

(F) Co-operative Farming Society

This society is formed by the farmers of a particular locality. Instead of going for

individual farming, they go for mass farming to get higher rate of return from economies

of scale. Combined they contribute land, labour, and capital in the field of agriculture and

share of benefits in a desired proportion among the members.

This process in more benefited because of (i) Mass production (ii) Maximum

output,(iii) Application of advanced technologies, fertilizers, seeds and others, (iv)

pooled resources fund, land and labour etc. (v) no financial crunch.

1.8 Co-operative Movement in India

In recent years, the co-operative movement has received a great impetus. In

India, the idea of co-operative took concrete shape for the first time in 1904. With thepassing of the co-operative credit societies Act which was a measures to combat rural

indebtedness and provide for credit societies. Government extended various kinds of help

to promote the objectives of these societies.

The essential features of this Act were as follows

A society could be formed by any ten persons living in the same village or town.

The co-operative societies were classified as rural and urban.

The rural societies were bonded to have unlimited liability, in case of urban

societies the question was left to their option.

The Act provides only for the formation of credit.

The area of operation within which societies could operate was callously

restricted.


15/84



The society could advance loans to members on personal securities.

The interest of a member in the share capital of the society was strictly limited. No

member could hold shares for more than Rs 1000.

The account of every society work to be audited by the register.

Societies were accepted from payment of income tax, stamp duties and

registration fees.

The societies work given a leangle personality and were authorized to rise found

and carry on they business in a co operative society.

In 1912, statutory provision was made for non credit forms of co- operation in

such activities have production, purchase, insurance, sale housing, ext... And the creation

of union of primary co-operative societies for mutual control and audit of central and

provincial banks to help the primary societies with credit

The Co-operative are the preferred instruments of socio-economic development

their contribution to the national economy of country is very significant in the wake ofdeclining is achieving greater heights, in the emerging environment of capitalistic from

of society for their socio-economic development .Government is also committee to

provide policy support for the development of Co-operative sector in the country.

(i) Co-operative Movement in pre-independence Era:

The pages of Indian history cite many evidences of Co-operative activities from

earliest times; however, the first recorded activity began in 1904 when this movement

was officially set up by British Government. Before that in year 1892, Derrick

Nicholson, tried to find out ways and means to establish institutions so as to help the

agricultural sector. He gave the suggestions for setting of Co-operative societies. Within

that decade, India faced a terrible famine in 1899.

The Government appointed the second Famine Commission 1901 to suggest

measurer for the victims. The commission recommended for a number of devilment


16/84



activities and setting up of new institution. The most important among them was the

strong recommendation for organization of Co-operative societies. The Government had

accepted many of the recommendation and in 1904 Co-operative Societies Act was

passed. The aim was to help the rural farmers and artisans by providing short term and

long term loans.

These credit societies were organized on the basis of two models, one for rural area and

other for the latter it was Schulze Delitzsch Bank Model. Due to this Act a number of co-

operative Societies grew up in rural area, but they could not function effectively. The

major defects were.

There was no provision for setting up of Non credit Co-operative Societies in rural

area.

No special Central agency was created for financing and supervising the activities of

these societies.

The division of the credit Co-operative societies in to two types rural and urban stood

as a barrier since no specific arrangements could be done for either due to the

overlapping nature of such classification.

The year 1928 saw a worldwide economic depression. The prices of agricultural

commodities fell down to a great extent and unemployment along with other economic

crisis grew up. The creditors had no way to repay the loan. This brought many Co-

operative movements. It had a separate department for a Co-operative credit. It helped to

keep the movement alive which was gradually decaying.

In 1937, the popular congress Government came to power in several states. The

popular leaders took much more initiative in organizing ad extending this movement. But

much progress could not do due to outbreak of Second World War. During this time, the

Ministry resigned. Ti was left in the hand of British Government again. But the war itself

gave a boost to co-operative societies. The war brought a sudden increase in the prices of

agricultural products and other food grains.


17/84



The rural farmer got extra economic gains. Non credit societies grew up. The

working capital of co-operative societies also increased. The number of different credit

and non credit co-operative increased rapidly. The Co-operative planning Committee in

1945 also worked al lot in this direction.

Main Principles of Co-operative Societies are

To inculcate the spirit of co-operators among the people in the State

To encourage people to promote co-operatives on a voluntary basis

To ensure that the co-operatives are formed and function on democratic principles

To ensure that the co-operatives in accountable to members

To ensure that the co-operatives function as useful instruments to bring about

sustained Improvement in the Quality of life of their of their members

To encourage co-operative to emerge as self supporting, economic service oriented

business concern

To encourage efficient deposit mobilization

To achieve financial gains and to put mutual aim ahead of private interest

To provide equal opportunities to all the members

(ii) Co-operative Movement in Post independence Era:

After independence for the first 3 years i.e. up to no significant development could

be made. It was mainly due to the problem created by partition and absence of concrete

programmed for national re-organization. However, the leaders of free India could the

importance of co-operative structure of country and various provisions were made

through different Five year plan.

The co-operatives movement completed its 50 years dump the first plan. The

golden jubilee was celebrated throughout the country with much excitement. This made


18/84



the people feel the importance of such a movement. Attention was given to utilize the

credit in productive activities.

The First plan also recommended for training of personnels and setting up of co-operative Marketing Societies.

The second plan laid down proposals for extending co operative activity into

various fields. It gave special emphasis on the warehousing co operatives at the state and

central level.

The third plan brought still new areas under Co operative societies. The co

operative society for sugarcane, cotton, spinning, milk supply was proposed. Some

concrete steps were taken to train the personnels The co operative training College at

Pune and many regional centers were established to train the workers.

The Fourth Plan emphasized for consolidation of co- operative system. The new

programme for high yielding crops was started. Different societies were organized to

serve these programmes.

The fifth plan made special provisions for improvement of Central Banks and no

viable primary agricultural societies, reorganizing marketing as well as consumer

societies. It also recommended for establishment of Farmers Service Societies.

The Sixth Plan laid down a point programme for co-operative societies. It aimed

at transforming the primary village societies to multipurpose societies.

i.To reconstruct the policies and of co-operative so that it can bring about economic

development of people.

ii.To extend co-operative activities to the field of food processing, poultry farming, dairy

farming, fishery and many other related fields.

iii.To give necessary training and guidance for developing skilled the efficient personnels.

The Seventh Plan has also given more importance on the growth and expansion of

co-operative societies to ensure public participation to achieve its main objective i.e. the


19/84



movement towards social justice has to be faster and there must be a sharper focus on

employment and poverty alleviation.

1.9 Structure of Co-operative Institutions in India

Levels of Co-operative Credit Society

Primary co-operative credit societies at base level (At village level)

A State co-operative Bank works at the apex level (i.e. works at state level)

The Central Co-operative Bank works at the Intermediate Level.

Primary Co-operative Credit Society

The primary Co-operative credit society is an association of borrowers and non

borrowers residing in a particular locality. The funds of the society are derived from the

share capital and deposits of members and loans from central Co-operative banks. The

Agricultural Credit Non- Agricultural Credit

Short-term Credit

Institution

State Co-operative

Long-term Credit Institution

(Land development Banks)

Central Co-operative Primary Agricultural Credit

Co-operative Credit institutions


20/84



borrowing powers of the members as well as of the society are fixed. The loans are given

to members for the purchase of cattle, fodder, fertilizers, pesticides, etc.

State Co-operative Banks

The state co operative bank also known as Apex banks forms the apex of the

operative credit structure in each state they obtain their funds mainly form the general

public by deposits loans and advance form the reserve bank and their own share capital

and reserves.

Anywhere between 50-90% of the working capital of the SCBs are contributed

by the Reserve Bank like the CCBs, SCBs, are also pure or mixed.

Functions

The following are the major functions of SCBs.

1.The SCB acts as a banker to Central Co-operative Banks

2.They have no power to supervise or control the activities of the affiliated CCBs

3.A SCB serves as a leader of the Co-operative movements in a state

4.It gives number of subsidiaries to DCBs for improving Co-operative credit

societies.

Defects

SCB also have the same defects of the CCBS. The following are the major defects of

SCBs.

1.They are mixing commercial banking activities with Co-operative banking

2.They have insufficient share capital


21/84



3.They utilize they reserve funds as working capital.

Progress

During the year 1980-81, there were 27 state Co-operative banks, with an aggregate

membership of the 12,706 CCB and primary societies and 12,731 individuals. Their

aggregate working capital amounted to Rs.27, 496 Croes.

In june 1991, there were 28 SCBs, the deposits amounted to Rs.6,128 Crores. Their

total loans outstanding were of the order of Rs.9,660 Crores. However, their loans

overdue account for 18% in 1993-94, their deposits amounted to Rs.11,305 Croes, loans

outstanding R.9, 8011 cores.

Central Co-operative Banks

The central Co-operative Banks are federations of primary credit societies in a

specific area, normally a district and are usually located in the district headquarters or

more prominent town of the district. These banks have a few private individuals as share

holders who provide both finance and management. The central Co-operative banks have

three sources of funds via., their own share capital and reserve, deposits from the public

and loans from the state Co-operative banks.

The Central Co-operative Banks (CCB) are of two types

1) Pure

2) Mixed.

Pure: A pure CCB confines its membership to Co-operative organization only; it is

called the Banking Union.

Mixed: A mixed CCB keeps its membership open Co-operative as well as individuals.

Mixed CCBs are found in the states of Assam, Andhra Pradesh, Tamil Nadu, Karnataka

and others.


22/84



Functions

The majors functions of the CCB are:

1)

The Finance the primary credit societies, by furnishing credit to the primary credit

societies, CCBs serve as an important link between these societies at the base level

and the money market of the country

2)They accept deposits from the public

3)They grant credit to their customers on the societies of first class gift edged

securities, gold, etc.

4)They provide remittance facilities

5)

They act as balancing centers by shifting the excess funds of surplus primary

society to the deficit ones.

6) Progress of CCBs

In 1981-82 (July-June) there were 338 central Co-operative banks with an

aggregate working capital of over Rs.5,327 cores or which their deposit amounted to Rs.

2,768 cores. In 1993-94 (April-march), their number amounted to Rs. 362. Their

aggregate working capital has been rise to Rs.27,586 cores. Of which deposits amounted

to Rs.16,281 cores. In 1993-94 loans outstanding were of the order Rs.17,758 cores, of

which Rs.22% was loans overdue.

Defects of CCBs

The following are the major defects of the CCBs

1)They violate the principle of Co-operation by Working on the lines of Commercial

Banks.They do not appoint experts to examine the creditworthiness of the primary

societies. Hence there have been problems of recovery and over dues.

2)Many CCBs are financially and organizationally weak.

3)

Mixed CCBs vitiate the very purpose of federation of the primary societies.


23/84



CHAPTER-3

COMPANY PROFILE

HISTORY

VISION

MISION

VALUES OF THE SOCIETY

SWOTS ANALYSIS

STRENTH

WEAKNESS

THREATA

OPPORTUNITIES

MANAGEMENT

ELECTION PROCEDURE

STRUCTURE

DUTIES

DEPOSIT SCHEMES

TYPES OF LOANS


24/84



SHIMOGA DURGIGUDI CO-OPERATIVE SOCIETY, SHIMOGA A-PROFILE

A-PROFILE

The Shimoga Durgigudi co-operative society registered under the co-operative

societies Act of 1959, established on 08-01-1949 has completed its useful service of 78

years in Shimoga city.

History of the society;

Before 1924 in Shimoga city, there were only one or two co-operative societies,

which were also not running well. More ever these two co-operative institutions never

use to encourage the financial aid to the formers. In such a situation a few leaders of

community firmly decided to establish a co-operative society by keeping aside their own

personal work and established the Durgigudi co-operative society.

The leaders of the society went to many houses and made persons to join the

society and collected Rs. 25% for each share of the society and on 30-04-1979, the

society was registered under the name called Durgigudi co-operative society Shimoga.

Durgigudi co - operative Society is the first bank in the district established to provide

financial assistance to the farmers alone. 38 villagers are constituted to Durgigudi co

operative society.

VISION

To make financial services universally available, to promote poverty alleviation

through the development of a strong sustainable economic infrastructure using financial

sound market mechanism.

MISSION

Linking the promotion of sustainable livelihoods with income-generation activities

for the community.

Ensure that all members follow the democratic way of making policies and electing

representatives and have an equal voice.


25/84



Ensure that all profits are controlled democratically by members and for their

benefit.

Enhance accessibility of financial services.

CO-OPERATIVE VALUES OF THE SOCIETY

1. Selfhelp: - we believe in helping people to help themselves to grow and achieve

economic and social independence.

2. Selfresponsibility: - we take responsibility for, and encourage our members to

be responsible for their actions, as well.

3. Equality: - we conduct our businesses in a fair and unbiased way.

4. Democracy: - our businesses in the way we run our business.

5. Solidarity: - we share interests and common purpose with members and other co-

operatives.

SWOT ANALYSIS

Identification of the threats and opportunities in the environment and the strengths

and weakness of the firm is the cornerstone of business policy formulation. It is these

factors which determine the course of action to ensure the survival of the firm.

STRENGTHS

Providing effective training to their administrative department members and staff.

Lending of short term loans with low interest rate for agriculture and other loans.

Availability of funds.

Well experienced planning team.

Variety of new products and schemes in the product line.

The societys strengths lie in management capabilities focused strategy and speedy

decision making.

Low cost of capital.


26/84



The banks provide good infrastructural facility to its staff and help them to

concentrate more on their job.

WEAKNESSES

Limited area of operation

Execution of strict government regulations, policies and guidelines

Delay in follow up on various accounts.

As the society provides job security the employees have become less productive.

Most of the workers in the society are jagged person which might reduce the

company productivity in future.

Absence of E-banking facility.

OPPORTUNITIES

1. Increase in technology based products like E banking and mobile banking etc on

account of positioning in core banking network.

2.

Increase in volume of business to improve productivity.

3. Innovative approach to rural banking with thrust on retail lending.

4. Improving economic conditions thrust to infrastructural activities which will have

an impact on other industries.

5. Increasing the scope for banking industry.

THREATS

Change in the government policy

Inflation

Recession

Competitors with different strategies in co-operative banking business.

High preliminary cost in new technology introduce in banking solutions.

Geographical disadvantages.


27/84



The management of a co-operative society is entrusted to a committee known as

board of directors. The members of the BOD are elected directly by the members of the

co-operative society at annual general body meeting.

Generally, a co-operative society has the following office bearers

President

Vice precedent

Treasurer

Chief Executive Officer

The managing committee determines the detailed programs and procedures of the

society. It is accountable to the every members of this society. The secretary is

responsible for the conduct of the day today affairs of the society in accordance with

the decisions of the BOD. He is accountable to the managing committee.

MANAGEMENT OF DURDIGUDI CO-OPERATIVE SOCIETY:

Democracy is the keynote of the management of Durgigudi co-operative society.

It is based on the principle of one member, one vote. The manage ment of this society is

entrusted to two bodies,

1. A general committee: it consists of all the members of the society.

A managing committee: it consists of 11 directors chosen among the members of

the general committee at its general meeting.

The administration of the society is vested in the hands of the committee, which

has been elected in the general body meeting and general body is ultimate authority for

all matters of the society.

Executive committee of Durgigudi co-operative society consists of a president,

vice president, and the 9 directors. The general committee elects the members of the

managing committee, appoints an honorary secretary and adopts the subject to orders and

reports of the registrar and auditor.


28/84



Thus the management Of D.CO.O.S. is carried on by the board directors elected

by the shareholders on the basis of one member one vote.

ELECTION PROCEDURE OF D.C.S

Election is an indication of democracy. Democracy is a symptom of give and take

policy. In this co-operative scenario, indicates co-operation through valuable services for

the society growth and development. This body work can be seen in D.CO.O.S. electoral

process. The election procedure of D.CO.O.S. is according to Karnataka state co-

operative societies Act (sec-14) and comprises the following clauses:

1.

Elections are held according to Karnataka state co-operative societies (Amended)

(Sec-14) (sec-134).

2. According to byelaw no. 31 of the society, total board of directors of restricted no.

11 and one is reserved for female member.

3. Default members are not eligible to contest and cast their votes according to

section 20 of the Act.

4. Elected / nominated application must be signed by the ten eligible member

[sec14(8)]

5. Nomination applications are rejected when they are issued after the last or without

the consent of the candidate [sec 14(9)].

6. Every elected or nominated application must have deposit of Ru. 10 and get the

voucher or demand draft from the society [for male members the deposit amount

is Ru. 50] Sec 14 (10)].

7.

Deposit amount are for forfeited in case the candidate failure to get 1 / 10

th

of thetotal valid votes [sec. 14 (11) and (12)].

8. The candidate must be present, both nominated and constant at the time of

withdrawal of nomination [sec 14 (17].

9. Symbols of election are printed on the notice board. In the application form, the

candidate can write for three symbols, ultimately, the chief election officer has full

power to assign symbols.

10.

Contestant must present at the time of scrutinizing the application.


29/84



11.According to 13-A voting candidate must have the identity card, which has been

issued by the secretary or his subordinates to cast the votes and sign the voting

register.

12.

The person for candidature should not posses disqualifications according to 29c of

co-operative socialites Act.

In addition to the electoral clauses, a separate timetable is given for detail

information about election time, venue etc., after the election, among the directors,

one is elected as president and vice president. Usually, the president can president

over the meetings.


30/84



THE STRUCTURE OF MANAGEMENT OF D.CO.O.S. CAN BE SHOWN IN A

CHART AS FOLLOWS

PRESIDENT VICE PRESIDENT TRESURE

BOARD OF DIRECTORS

C E O

ACCOUNTANT

CASHIER

PEONE

SHARE HOLDERS


31/84



SHAREHOLDERS

Shareholders are the real owners of the co-operative society; they purchase shares

by paying its face value as their shares the total capital of the society.They exercise theirrights through casting their voters;

thereby they look after the welfare of the society with the help of directors, who

have been elected with the votes of shareholders. Usually, share holders believe in the

directors and they see overall performance of the society at the annual general body

meeting in which the final accounts are presented by the secretary. In case of shortage of

capital or surplus of capital can read jested by refunding or raising vice versa as the case

may be with the help of directors.

YEARS NO.OF

SHAREHOLDERS

31-3-2009 5275

31-3-2010 5547

31-3-2011 5797

31-3-2012 5997

31-3-2013 6210


32/84



Chart Showing Number Of Share Holders.

As the name indicates, they are not entitled voting power and exercise their rights

in the society affairs. Membership amount of the nominal members may be transferred

after

QUALIFICTION FOR MEMBERSHIP;

As per byelaw of the society, the members must be fairness and come under

Shimoga district jurisdiction and must attain 18 years old. The boards of directors have

the full power to accept or reject the membership applications.

DISQUALIFICATION FOR MEMBERSHIP:-

The membership may be cancelled for the three following reasons.

1)Not to take more time than restricted time.

2) Loan amount cannot be used for other than purpose.

3) Lunatic, insolvent, misconduct and other dis-qualifications.

5275

5545

57975997 6210

2009 2010 2011 2012 2013

NO OF SHAREHOLDERS

NO OF SHAREHOLDERS


33/84



LIABILITY OF MEMBERSHIP:-

The liability of members of the DURGIGUDI COOPRRATIVE SOCIETY. in

limited to the extent of the full of the shares held by them.

PRESIDENT

President is chief executive body of the society; as he is to preside over all the

meetings and functions of the society.

Shareholders are given voting power to control and look after day to days

business of the society. But, in practical, it is not possible to all of them to come out and

see the affairs of the society. For that, as per society elected procedure they elect

directors and among the directors, one is elected as the president of the society. He can

presume his power as president for a year.

VICE PRECIDENT;-

He is basically a director. In the absence of president, he extends his co-operation

and suggestion in case of decision making process.

Vice precedent is elected by the directors. He can be the executive officer of the

society. Thus, he has the power to frame the rules regarding working and management of

the society.

DIRECTORS;

Co-operative society represents the collective responsibility of its members and its

prosperity is being carried by them, (SHAREHOLDERS)

It is not possible for all shareholders in the day to day management of the

society, as they are large in number and are scattered over Shimoga district. So, the

shareholders of the society elect among themselves some members are good in society

management as their representatives to manage the day-to day affairs of the society. The


34/84



members or representatives elected by the shareholders to manage or direct the day to

day affairs of the society. The members or representatives elected by the shareholders to

manage or direct the day-to day affairs of the society are known as DIRECTORS. As per

byelaw no. 31 of the society, total board of directors are restricted to 9 and one is

reserved for female member.

QUALIFICATION OF DIRECTORS;-

1. Director must be a shareholder of the society.

2. He must be a resident of Shimoga district.

3. Director must fill up his application in prescribed format, which has been set by

the board of directors.

4. He must fill up his application before annual general body meeting.

5. He must be a person of sound mind.

DISQUALIFICATION OF DIRECTORS;

1.

Director must not be a defaulter, defaulters surety.

2. He must not be a defaulter of any other co-operative society.

3. He should not be a member of any other co-operative society.

4. He must have sound knowledge; means has not been disqualified by an order of

the court.

POWERS OF DIRECTORS

The board of directors of the society enjoys all such powers are enjoyed by the

society itself. Thus, the board us entitled to exercise all such powers and do all such acts

and things as the society is authorized to exercise and do. This means that, the powers of

board of directors are co-extensive with those of the society, i.e., as great as those of the

society.


35/84



THERE ARE HOWEVER, THE FOLLOWING IMPORTANT POWERS OF THE

DIRECTORS;

A.

Directors can set a limit of loan.B. Interest rate is to be fixed at the board meeting.

C. Power to disqualify the application of the new members.

D. Disqualification of membership of default members.

E. Power to call a special meeting of members.

F. Power to invest the funds of the society.

G. Power to verify the accounts of the society.

H.

Power to appoint a secretary and internal auditor.

I. Power to get loans and meeting allowances.

THERE ARE HOWEVER, THE FOLLOWING IMPORTANT LIMITATIMNS

UPON THE POWERS OF DIRECTORS;

A. They must exercise their powers subject to the provisions contained in the co-

operative societies Act 1912.

B. The board of directors cannot exercise those powers, which are required to be

exercised by the members in the general body meeting.

C. They cannot sale or borrow outside funds without the knowledge of society

members.

MEETING OF D.CO.O.S. DIRECTORS

In case of every co-operative society, the meeting of its directors must be held atonce in every month and at least 12 such meeting must be held in every year. In case of

important decisions or policy matters interim meeting may be called. It is important to

note that there is no provisions as to the interim meetings are concerned.

According to the society, the notice of every board must be given before one

work, in writing to every director at the time being in Shimoga. And to every other

director it gives notice to any director at his usual address for communication. It may be


36/84



noted that, the failure to give notice to any director renders the meeting invalid. The

quorum for the board meeting (i.e., the minimum number of directors required for

meeting) is 1/3 of its total strength or 5 directors whichever is higher.

The proceedings of the board are to be conducted in the manner provided for in

the clause of Karnataka state co-operative societies act. The act provides that, a majority

shall decide the questions at the meeting the matters decided in the meeting are put in the

form of resolution may also be passed by circulation. The resolutions of the bound to

help others in carrying out the decisions taken by the board.

The resolution passed at the meeting are entered in the minute book of the society,

which is to be signed by the president of the succeeding meeting.

DUTIES OF DIRECTORS;

We know that, the directors of a society occupy an important position in societys

management and enjoy immense power. However, they should exercise their power for

the protection of the interest of the members. The byelaw of the society therefore

requires them to perform duties in order to prevent the abuse of power. The duties of

directors may be given as follows;

Duty to call annual every year.

Duty to maintain secret of the society.

Duty to approve balance sheet and profit and loss account before they are submitted

to auditors for their report.

Duty to attend board meetings.

Duty to send to the registrar of co-operative copies of special resolutions.

Duty to keep the register of members.

Duty to see that proper accounts are kept, profit and loss account and balance sheet

are prepared and are placed at every annual general meeting along with the auditors

report and directors report.

Duty to perform the functions of the society personally and not delegate them to

other persons.


37/84



Duty to disclose the interest of the society.

SECRETARY;

Secretary is an important officer of the society. However, he is only a subordinate

officer and has managerial functions. He is being appointed by the board and has no

original authority. He is required to perform the duties assigned to him under the co-

operative societies act and by the board of directors. He is responsible for the day-to day

working of the society, especially his duties include.

1. To keep and maintain various of the society (such as register of members, register

of directors etc.)

2. To carryout the orders of board of directors.

3. To file with the register of co-operative society, necessary document and returns

(annual returns, account etc.)

4. To submit and verify miscellaneous statements, forms and returns.

5. He is required to advise and guide the directors on all important legal matters

affecting the working of the society.

6. He should draft directors report to be presented at the annual general meeting.

7. He should arrange for the payment of dividends to the shareholders.

8. To perform all statutory requirements on behalf of directors.

9. To attend all meeting of board directors and record the proceedings of all such

meetings.

10.To organize and control the staff of the society and to supervise their work.

11.

To look after all the internal or office management of society.

We know that, a secretary is appointed to perform all administrative functions, in

which an accountant, internal auditor, cashier-clerks, servants support him in carrying

out societys days activities.


38/84



WORKING OF D.CO.O.S

Introduction

Objectives Of The Society

Functions Performed By The D.Co.O.S.

Society Performance To A Glance

INTRODUCTION;

Daytoday work is carried on with the help of wellknown staff members.

They are much essential to carry out its financial transactions. These people are treated as

work force to the financial activities.

The society works with total staff members:-

C E O

Accountant

Cashier

Peon

OBJECTIVES OF THE SOCIETY;

The main objectives of the society are;

F. To extends credit facilities or financial assistance to the members at reasonable

rate of interest.

G.To provide loans to increase agricultural production, animal husbandry, poultry

and agricultural equipments.

H.To provide loans to improve irrigation facilities to dry lands.

I. To provide co-operative education and publicity of society.

J. To border or extend facilities of co-operative society to its members.

K.To encourage the habit of saving among the members.

L. To educate small and middle class people to understand co-operative principles.


39/84



SOURCE OF FUNDS;

The following are the important source of income of DURGIGUDI.CO

OPERATIVE SOCIETY SHIMOGA.

A)Share capital;

Share capital is a capital, which has collected from its members for the

primary membership.

B)Deposits;

It is revenue deposited by the members who have saving habits in

accordance with their earnings.

FUNCTIONS PERFORMED BY THE D.CO.O.S.

1.

RECEIVING OF DEPOSITS;The society records different types of deposits from the customers.

The society has introduced several schemes to attract deposits, they are;

Saving deposits

2.

GRANTING OF LOANS AND ADVANCES;

The society grants and advances to its members at the reasonable

rate of interest. The society provides following types of loans :-

Gold ornament loan

Pledge loan

Surety loan

Property loan.


40/84



3. INVESTMENT OF FUNDS;

The society invests a good portion of its funds in D.CO.O.S. (Shimoga). The totalinvestment of the society as on 31/3/2013 amounted to more than Rs 1622450

BENEFITS SCHEMS TO MEMBERS;

A.

Members welfare fund;

In the year 1989 this scheme was introduced. Under this scheme, the membership

fees of RS 500/- on the death of the members it provides Rs 1,000/- as compensation.

B. Endowment education fund;

This scheme is introduced in the year 1999. Under this scheme it distributes Rs,

54,710/- to the students of its members. Recently it is also encouraging handicapped with

the help of this fund.

C. Safety locker facility;

Safety locker facilities provided at the society with a cheaper rate to protect its

customers from the uncertainties like, robbery, theft, fire ect. With this locker facility an

additional deposit is provided to attract customers moderate


41/84



Profit And Loss A/C As On 31-3-2013_____________________________________________________________________________________

A) Interest Paid Income 1992052.51

Dcc Bank Loan Other Income 810.00

Interest 25,703,00

Members Deposit

Interest 3,95,078,00

Total 4,20,781,61

Less Reserves 100000.00

B)Administrative

Expenses 538893.16

C)Staff Expenses 374333.00

D)Reserves

1. Interest On

Deposits 100000.00

2. Audit Fees 22500.00

3. Depreciation On

Building 194853.00

4.Muncipal Tax 50000.00

5. Staff Gratuity 125000.00

6. Balance Fund 50000.00

7. Interest On Fixed

Deposit 23199.00

8.Depreciation On

Furniture 473.00 566025.00

Profit 192829.74Total 1992862.51 Total 1992862.51


42/84



DEPOSIT SCHEMES AND CREDIT FACILITIES IN D.CO.O.S.DEPOSIT

SCHEMES

INTRODUCTION

TYPES OF DEPOSITS

DEPOSIT SCHEME

Deposit constitute the main source of D.CO.O.S. the society receives deposits

from the customers on various accounts .

They are as follows;-

1. Savings A/C;

This account is generally opened by all members of the society. In this account,

the depositor can deposit money at any time. Minimum amount to open S.B.A/C is Rs

2500/- and at present interest offered by the society on such deposits is 7%.

The business class, petty shop owners etc., generally opens this account this

account, in this a/c the depositer can with draw money at time. There is no interestoffered by the society on this account. Minimum amount to open a a/c Rs 250/-.

The society accepts current a/c deposits from its members. The maximum period

of this deposit is 3 years. The rate of interest offered by the society varies from 8% to 9%

up to one year. The rate of interest is 9% per annum and above one years the rate of

interest is 8% p.a.

It is also known as cumulative deposit. The maximum period of this deposit is 3

years. The rate of interest offered by the society varies from 8% to 9% p.a. deposit for up

to one year, the rate of interest is 9% p.a. and deposit for above one year, the rate of

interest is 8% p.a. quarterly accrued interest on such deposit will be added to the

principle amount


43/84



This deposit is also called as cumulative deposit. The maximum period of this

deposit is 3 years. The rate of interest offered by the society varies from 8 % p.a. deposit

for up to one year, the rate of interest is 9% p.a. deposit for above one year. The rate of

Interest is 8 % p.a.

CREDIT FACILITATES IN D.CO.O.S.

INTRODUCTION TYPES OF CREDIT PROVIDED BY THE SOCIETY.

The DURGIGUDI COOPERATIVE SOCIETY provides loans and advances to

its members. The society provides credit facilities both to regular members and nominal

members. The society deploys its funds by the great of loans and advances to its

members depend upon their needs.

The loan is given according to the purpose for which the loans is required and the

resources where from the borrower is expected to repay have also an important bearimg

not only on society liquidity, by its desirability too. If the loan is required for non

productivity and sqeculative purpose, the society should think twice before entertaining

the proposition

TYPES OF CREDIT PROVIDDED BY THE SOCIETY;

The various types of credit facilities provided by this society are given below;-

o Pledge loan

o

Gold ornament loan

o Surety loan

o Property loan.

1.

Pledge loan.


44/84



This loan is provided by the society to its members on their own responsibilities

without interest for a short period. It provides selfloan to its members without interest

up to 5000 with 15 % rate of interest. This loan is repayable in 100 installments.

Pledge loan is a loan provided by the society to its members on the security of

other members,. It provides loan amounting into Rs, 20,000/- for a member family which

doesnt have permanent property,. It provides loan amount at Rs. 30,000/- and for the

members family which have permanent in both the cases will be minimum 16% and

maximum 18%. The member can repay this loan in installments.

This loan is given to small farmers for the improvement their loans. The minimum

amount of loan given is Rs. 5000/- and maximum limit Rs 1,00,000/-. The repayment

period is limited to 12 monthly installments. The interest charged is 15 %.

2. Gold loans;

Gold loan is a loan gold loan is a loan provided on the security of gold ornaments.

The society provides the loan against the gold ornaments for a maximum amount of Rs

1,00,000. The loan is given on the basis of 60% of appraiser value of the gold. The rate

of interest charged is 15%.

The society provides loan to its members as the security of deposits made by

them. Thus loan is given on the basis of amount deposited by the members. The loan is

given to the he extent of 90% of the deposit amount the rate of interest charged as loan is

one rupee more than the interest given for that fixed deposit.

Loan is a loan given on the security of building owned by its members. The

minimum loan amount is Rs 40,000 /- and maximum up to Rs 150000 the rate interest

charged is 15 %. It also given subsidy at 3 % a rate of interest. On prompt payment of

loan.

3. Surety loan.

Surety loan is a loan provided to its members on the security of members house

property. The society provides maximum amount of house loan up to 5 lakhs. This is also


45/84



provided to purchase a new house. The rate of interest charged by the society is 15 %.

The society gives subsidy at 3 % in rate of interest for prompt repayment of

loan.Provides for all members of the society having own agriculture land.

4.

Property loan.

Property loan is a loan provided to its members on the security of members

house property. The society provides maximum amount of house loan up to 5 lakhs. This

is also provided to purchase a new house. The rate of interest charged by the society is 15

%. The society gives subsidy at 3 % in rate of interest for prompt repayment of loan.

The society provides a loan to its members on the security of national saving

certificate. the loan is given on 70 % of face value of the national saving certificate. The

rate of interest charges by the society is 15 %.

For the purpose of comducting the survey. Questionnaire are prepared and

distributed to the selected customers to collect their opinions about various aspects of the

society. For the purpose of survey. The total 100 respondents have been interviewed

those who have regular contact with the society.

The customers are selected on the basis of gender, occupation income and so on.

The data collected during the survey is analysed by using statistical tools like

average percentage, graphs etc.


46/84




47/84



CHAPTER4

ANALYSIS AND INTERPRETATION


48/84



ANALYSIS OF THE SURVEY

AGE GROUP

Table

5.1

Table showing distribution of respondents on the basis of their age group:

Age No. Of Respondents Percentage

18-25 9 18%

26-35 13 26%

36-60 21 42%

60&Above 7 14%

Total 50 100%

In the above table, response obtained from the respondents of the age group

between 18-25 and also 60 and above is not so effective. The opinion of the age groupbetween 26-35 is considerable and the opinions of the age group between 36-60 years

have good suggestion. Since, respondent of the same age group 36-60 residing at the

same area where, the society is situated and they have got regular contact with the society

is situated and they have got regular contact with the society.

As we know that, age group of 60s age is known as senior citizens of the country.

If society , provides them better services then it could have more number of customers in

that age group. In case, age group of 18-25 customers hence their percentage could be

improved. If they found job or remunerative work at the earliest time.


49/84



Chart-5.1

Chart showing classified of respondents on the basis of their age groups:

9

13

21

7

0

5

10

15

20

25

18-25 26-35 36-60 60&Above

No.Of Respondents

No.Of Respondents


50/84



OCCUPATION

Table5. 2

Table showing distribution or respondents on the basis of their occupation:

Occupation Number of respondents Percentage

Business 24 48%

Employees 15 30%

Others 11 22%

total 50 100%

Out of 50 respondents, the last category respondents include a varied

occupation including house wives, and have given response. Where as,

businessmen and employees have given remarkable suggestions.

Society provides, number of benefits to the businessmen and job holders.

Hence, their ratio is high comparing to other respondents and it is recommend

that, if society extend its services to other customers then definitely, there could

be number of housewives and other customer can get the benefit of the society.


51/84



CHART5. 2

Chart showing classified of respondents on the basis of their

occupation:

0

5

10

15

20

25

Business Employees Others

24

15

11

Number of respondents

Number of respondents


52/84



MEMBERS

Table-5.3

Members No. Of Respondents Percentage

Yes 38 76%

No 12 24%

Total 50 100%

From the above table it is clear that the more number of respondents are member

of DURGIGUDI CO- OPERATIVE SOCIETY out of 100% , 76% of members are

there.

And we hope in future days out of 100% there will be 90% of

respondents are members of DURGIGUDI CO-OPERATIVE SOCIETY.


53/84



Chart-5.3

Chart showing classification of members of DURGIGUDI CO-OPERATIVE

SOCIETY.

38

12

No. Of Respondents

Yes

No


54/84



ACCOUNT

Table-5.4

The below table is showing of members that they have any kind of account in

DURGIGUDI CO-OPERATIVE SOCIETY.

Members No. Of Respondents Percentage

Yes 31 62%

No 19 38%

Total 50 100%

The above given table is showing that how many members are having their

account in the DURGIGUDI CO-OPERATIVE SOCIETY, the percentage of having is

62% out of 100%, and the percentage of not having is 38% out of 100%.

So that the DURGIGUDI CO-OPERATIVE SOCIETY has to improve or it has to

increase its account by the members.


55/84



Chart-5.4

The below given table is showing that the members having their account in the

durgigudi co-operative society.

0

5

10

15

20

25

30

35

Yes No

No. Of Respondents

No. Of Respondents


56/84



ANNUAL INCOME

Table5.5

Table showing classification of respondents on the basis of their income (per

month):

Annual Income No. Of Respondents Percentage

Below 20,000 27 54%

20,000-50,000 18 36%

50,000 and above 5 10%

Total 50 100%

Among 50 respondents interviewed, income up to rs.50,000 and above shows

negligible. The opinion of income group people 20,00050,000 is considerable and the

income of below 20,000 is so effective.

With the above finding we can say that, the high income group people to whom

loans from other (BANKS) are available, are not getting much benefit from the society.

And it is low income group people who are more benefited out of it.


57/84



CHART

5.5

Chart showing classification of respondents on the basis of their income (per

month)

2718

5

No. Of Respondents

Below 20,000

20,000-50,000

50,000 and above


58/84



DEPOSIT SCHEMES

Table5.6

Table showing different types of deposit schemes of respondents.

Deposit schemes No. of respondents Percentage

Savings A/C 29 58%

Current A/C 21 42%

Total 50 100%

From the above table, it is clear that, the DURGIGUDI COOPERATIVE

SOCIETY accepts saving deposit is more than other type of deposits. After,

current deposit occupies the major part or place.

It is advisable for the society, to make proper advertisement to attract

customer to those schemes, which are preferring at poor level.


59/84



CHART 5.6

Chart showing classification of respondents on the basis of their deposit

schemes:

0

5

10

15

20

25

30

Savings A/C

Current A/C

29

21

No. of respondents

No. of respondents


60/84



RATE OF INTEREST ON DEPOSITS

Table5.7

Table showing general opinion of respondent towards the rate of interest on

deposits:

Opinions No. of respondents Percentage

Attractive 14 28%

Satisfactory 25 50%

Not- satisfactory 5 22%

Total 50 100%

50% of the respondents have given their opinion that; the interest offered by the

society on deposits is satisfactory. 22% of the respondents have given not satisfactory

suggestion. 28% of the respondents have opinioned that rate of interest on deposits is

attractive.

The customer who have deposited their money in the society for the long period,

they have got maximum benefit by means of interest, contrary to this, the customer who

have deposited their amount for the short period, they are not satisfied about interest rate

of the society.


61/84



CHART 5.7

Chart showing general opinion of the respondents toward the rate of interest

on deposit

0

5

10

15

20

25

AttractiveSatisfactory

Not- satisfactory

No. of respondents

No. of respondents


62/84



WORKING AND MANAGEMENT

Table-5.8

The below table showing the general opinion of the respondents towards

working and management of the society:

Opinion No. of respondents Percentage

Good 8 16%

Excellent 10 26%

Satisfactory 30 50%

Not satisfactory 2 8%

total 50 100%

From the above table, it shows that 25 persons have responded that, the working

and management and management of the society is satisfactory. 13 persons have

responded that, the working management of the society is excellent. 8 persons have

responded that the working and management of the society is good. Therefore, only 4

respondents have responded that, the working and management of the society is not

satisfactory

It is advisable for the society, to maintain and give more and more to its

customers. Therefore, management should take necessary to identify the needs and wants

of its customers.


63/84



CHART5.8

Chart is showing general opinion of the respondents towards the working and

management of society.

0

5

10

15

20

25

30

Good Excellent Satisfactory Not

satisfactory

No. of respondents

No. of respondents


64/84



PUNCTUALITY OF STAFF MEMBERS

Table-5.9

Table showing general opinion of the respondents towards punctuality of staff

members.

Punctuality of staff

members

No. of respondents Percentage

Satisfactory 44 88%

Not satisfactory 6 12%

Total 50 100%

From the above tables it is clear that, 44 respondents have given

satisfactory opinion about the staff of the society and 6 respondents have

given notsatisfactory suggestions (remarks).

Hence in future, the society should provide optimum services to its

customer s fo r creating good opinion in the minds of its customers.


65/84



CHART-5.9

Chart showing general opinion of respondents towards punctuality of staff

members:

0

5

10

15

20

25

30

35

40

45

Satisfactory Not satisfactory

44

6

No. of respondents

No. of respondents


66/84



TYPES OF LOAN

Table5.10

The below table shows the different types of loans borrowed by the

respondents:

Types of loan No. of respondents Percentage

Pledge loan 18 36%

Gold loan 7 14%

Surety loan 15 30%

Property loan 10 20%

Total 100 100%

According to the survey , the majority of the members have taken

gold loan and surety loan i.e., 36% and 30% respectively. 14% of

respondents have taken pledge loan and 20% of respondents have taken

property loan.

Thus , the society should take measures to provide more loan facilities

and awareness of its customers towards facilities.


67/84



CHART5.10

Chart showing different types of loan taken by the respondents.

0

2

4

6

8

10

12

14

16

18

Pledge loan Gold loan Surety loan Property loan

18

7

15

10

No. of respondents

No. of respondents


68/84



CAME TO KNOW

Table5.11

The below table showing how did they come to know about loans and

advances of DURGIGUDI CO-OPERATIVE SOCIETY.

Way of knowing No. of respondents Percentage

Friends 12 24%

Relatives 18 36%

Society advertisements 15 30%

Others 5 10%

Total 50 100

From the above table it is clear that number of respondents came to know

about loans and advances of DURGIGUDI CO-OPERATIVE SOCIETY through so

many ways they are namely friends , relatives , society advertisements and finally

from others.

But out of these ways the way of relatives is higher than others its

percentage is 36% and percentage of friends is 24% and percentage of society is

30% and finally others percentage is 10%.


69/84



CHART 5.11

The below chart is showing of how did respondents come to know about loans and

advances of D.CO.O.S.

0

2

4

6

8

10

12

14

16

18

12

18

15

5

No. of respondents

No. of respondents


70/84



RATE OF INTEREST ON LOANS

Table-5.12

The below table showing general opinion of the respondents towards the

rate of interest on loans:

Opinions No. of respondents percentage

Low 22 44%

Moderate 16 38%

High 9 18%

Total 50 100%

The survey is conducted for 50 respondents, towards the rate of interest on loan,

22 respondents have given the opinion that the rate of interest is low, 16 respondents

opinion are moderate. 9 respondents options are high rate of interest.

It shows from the above survey that, the rate of interest charged on the loan is

affordable and customers are

ProjectLoans and advances with special reference to D C S

Documents

Transcript of ProjectLoans and advances with special reference to D C S