Professional Documents
Culture Documents
1. INTRODUCTION TO THE PROJECT REPORT 2. INTRODUCTION TO CO-OPERATIVE SOCIETIES 3. SHIMOGA KASABA VYAVASAYA SEVA
SAHAKARA BANK SHIMOGA A PROFILE 4. MANAGEMENT AND WORKING OF SKVSSB 5. DEPOSIT SCHEMES AND CREDIT FACILITIES IN S.K.V.S.S.B 6. FINDINGS OF THE SURVEY 7. PROBLEMS, SUGGESTIONS AND CONCLUSION ANNEXURES QUESTIONNAIRE BIBLIOGRAPHY
used is shortened as
S.K.V.S.S.B For the convenience of report preparation . Its earlier name was Kasaba Dodda Pramana Sahakara Sanga Shimoga. Due to administrative reasons in the year of 197 the society changes its name as Shimoga Kasaba Vyavasaya Seva Sahakaria Bank Shimoga. Agriculture is the back bone of our country in India more than 75% of people are resulting in source area and more than 69% of people depend on agriculture for their Vigor. As agriculture is the main source of the national Income of the country, it is also the primary source of savings and capital formation. It accounts for about 32% of National Income of the country. Indian formers are financially very poor. There is also rural indebtedness. The seriousness of the rural indebtedness in India has been very well brought out by the statement. Indian Formers are both in debts, live in debts and die in debts.
For the successful development of agricultural in the country, an adequate supply of finance to indispensable only when finance is available in required amount, agriculture can be carried on as a commercial preparation successfully. So, this Project Report is oriented and instituted soon and advances to agricultural sector under government schemes. This Project Report is oriented to know how the Government provides financial ass8stat to the agricultural people and their development. The Kasaba Bank Shikaripura has been selected for the study as to how government work in providing financials to the needy people in the rural bank.
Objectives of the study: To make a brief study of working and management of S.K.V.S.S.B. To study the growth and financial resource of the S.K.V.S.S.B. To make a brief study of the customer's service provided by the S.K.V.S.S.B. To identify the problem faced by the S.K.V.S.S.B. To suggest solutions by studying the problems relating to the society. To find sources for further information concerning the society problems.
To know about the service provided by the S.K.V.S.S.B. To know about the service provided by the S.K.V.S.S.B.
Purpose of study: The main purpose of Study is to know the problem faced by the Bank and to suggest solutions to the problems faced by bank and formers problems. Besides these purpose object are. To know the Government helped and is helping to the agricultural people. To study the problem faced by the agricultural people on matter of loan borrowing. To know the credit-facilities of Government To Study about performance of the branch a bank. To get general opinion about the customer. To get-opinion about agriculture finance provided by bank for agriculture. To know the problem faced by bank. To suggest solution for their problem. To make suggestion regarding development of services to attract customer. To know how the bank helps in development of Agriculture. To know whether credit facilities are satisfactory to the agriculture.
Methodology: The data is collected is of two types they are primary data and the secondary data Primary data and other type of data is collected from library books, newspapers, literature etc, which have been enumerated in the bibliography. This is secondary data the data has been tabulated analyzed and interpreted. The case study has been made in the KASABA VYAVASAYA SEVA SAHAKARA BANK SHIMOGA
Need of the study: 1. The study makes us to know the performance and growth of the S.K.V.S.S.B. 2. The report is helpful to understand the working and management of the S.K.V.S.S.B. 3. The report is helpful in knowing about the Members wants to the society's service. 4. The study helps in knowing the financial position of the S.K.V.S.S.B. 5. It increases the knowledge regarding co-operative operations and activities.
Limitation: The Survey however suffers limitation of time & money. Even then, sincere efforts have been made to make the survey a realistic one to ascertain the really and to suggest remedies for the problems. The following are some of the limitations of the study 1. The study is conducted only on basis of data provided by K.V.S.S.BANK 2. Conclusions are drawn on the basis of limitation data available 3. Time was limited to conduct a detailed study. 4. Customers are reluctant to give information. Hence information provided by them may be biased. Partial justice is made in this report to lack of time. As recent information, regarding number of Kasaba co-operative societies in India were not available at the time of preparing this project. It has not been included.
Introduction Meaning Society Characteristics or Principles of Co-operative Society Formation of a Co-operative Society Co-operative Movement in India and Definition of Co-operative
Co-operative societies are one of the forms of business organization. They are found 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. Unlike, 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
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 cooperative societies so as to get essential commodities at fair price and protect themselves against the exploitation by the retailers. 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. MEANING OF CO-OPERATIVE SOCIETY: The word "co-operative' is derived from the Latin word co-operative. Co means together and operari means to work. In other words, co-operation means to work together to achieve common purpose.
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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.
DEFINITION OF CO-OPERATIVE SOCIETY: A "Co-operative society" means, a co-operative society registered under the co-operative societies Act, 1912 or under any law for the time begin in force in any state for the registration of co-operative societies.
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Co-operation has been defined in different ways by different authorities. Some of the important definitions are as follows: (1). H. Calvert, defines co-operations as " a from 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". According to Calvert, a Co-operative society is a
voluntary association. (2). 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"
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(3). Mr. Talmaki, defines 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". (4). According to Dr. K.N.Katju " Co-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", (5). Professor. Lamert observes " 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".
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CHARACTERISTICS OR PRINCIPLES OF COOPERATIVE SOCIETY: The Main characteristics or principles of a cooperative 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 following privileges: 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. 5. The society can enter into contracts with other persons.
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6. The society can institute and defined suits on other legal proceedings. 7. The society can do all others thongs 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 persons is free to join a cooperative 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.
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4)Unrestricted Membership. There is no limitation on the membership of a cooperative society. The number of members of a co-
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.
As a co-operative
operates on a local scale, generally , all the members attend the meetings. Further at the meetings each
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member has only one vote. Again at he meetings only those policies, which promote common interests are laid down. Thus, the day-to day 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
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
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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 or unlimited. The liability of the members is limited in the case of a limited co-operative society, and unlimited in the case of an unlimited cooperative society.
FORMATION OF A CO-OPERATIVE SOCIETY: In India, the formation and registration of cooperative societies if governed by the provisions of the INDIAN CO-OPERATIVE SOCIETIES ACT OF 1912 or The State Co-operative society Act in force in various states.
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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 cooperative societies of the state in which the society's office is to be located. The application for registration should state: a) The proposed name of the society; b) The aims and objects of the proposed society; c) Its area of operations; d) Particular of share capital proposed to be raised by issue of shares and e) 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
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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.
CO-OPERATIVE MOVEMENT IN INDIA In recent years, the co-operative movement received a great impetus. has
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operative took concrete shape for the first time in 1904. With the passing of the co-operative credit societies Act which was a measures to combat rural indebtedness and provide for credit societies. Government extended
The essential features of this Act were as follows; 1. A society could be formed by any ten persons living in the same village or town. 2. The co-operative societies were classified as rural and urban 3. The rural societies were bonded to have unlimited liability, in case of urban societies the question was left to their option. 4. The Act provides only for the formation of credit . 5. The area of operation with in which societies could operate was callously restricted.
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6. The society could advance loans to members on ly on personal securities. 7. 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. 8. The account of every society work to be audited by the register . 9. Societies were excepted from payment of income tax , stamp duties and registration fees. 10. 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 has 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
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In order to review the progress and lay down the future pattern of growth for co-operatives, the Macaroon committee was appointed in 1914. In the light of the recommendation of this committee, co operative
societies were recognized and provisions and was made for the association of non official institutions and individuals with this movement. Under the Act of 1919, co- operation become a provincial transferred subject. However, the Government of India continued to take
interest in the growth of the movement and established the Agricultural Credit Department in the Reserve Bank of India, in 1935 . IN 1945 the co-operative planning committee was appointed which recommended that primary society should be converted into multi- purpose societies and that within a period of ten years 50% of the villages and 30% of the rural population should be brought within the ambit of the reorganized societies.
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The committee of direction appointed in 1951, by the Reserve Bank of India surveyed the rural credit structure and its report was published in December 1954. The committee recommended an "Integrated scheme of Rural Credit".
CHAPTER- 3
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SHIMOGA KASABA VYVASAYA SEVA SHAKARA BANK SHIMOGA A-PROFILE: The Shimoga Vyvasaya Seva Sahakara Bank
registered under the co-operative societies Act of 1931, established on 30-4- 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 to co-operative institutions never use to encourage the financial aid to the farmers . 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 kasaba seva sahakara Bank. The leaders of the society went to many houses and made persons to join the society and collected Rs. 25%
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30-4-1979, the
society was registered under the name called "Kasaba Dodda Pramana Sahakara Sanga" Shimoga. 'Kasaba' is the First bank in the dish erect established to provide Financial assistance to the farmers alone. 38 villagers are constituted to kasaba bank. Since 58 Years the bank is operating in Kannada language only.
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CHAPTER - 4
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committee'. The members of the managing committee are elected directly by the members of the co- operative society at annual meeting. Generally, a co- operative society has the following office bearers President Vice precedent Secretary Treasurer. The Managing committee determines the detailed programs and procedures of the society. It is accountable to the general body members.
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The secretary is responsible for the conduct of the day to day affairs of the society in accordance with the decisions of the managing committee . He is accountable to the managing committee
MANAGEMENT OF S.K.V.S.S.B. Democracy is the keynote of the management S..K.V.S S.B it is based on the principle of 'one number, one vote'. The management of this society is entrusted to two bodies , viz.
The administration of the society is vested in the hands of the committee, which has been elected in the
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general body meeting and general body is ultimate authority for all matters of the society. Executive committee of S.K.V.S.S.B consists of a president, vice-precedent, and the 13 directors. The general committee elects the members of the managing committee, appoints an honorary secretary and adopts the annual balance sheet submitted by the managing committee subject to orders and reports of the registrar and auditor. Thus the management of S K.V.S.S.B is carried on by the board directors elected by the shareholders on the basis of 'one member one vote'.
ELECTION PROCEDURE OF S.K.V.S.S.B. Election is an indication of democracy. Democracy is a symptom of give and take policy. In this cooperative scenario, 'give' indicates co- operation through valuable services for the society growth and
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electoral process. The election procedure of S,KV,S,S,B is according to Karnataka state co- operative societies Act (sec-14) and comprises the following clauses: 1. Elections are held according to Karnataka state cooperative societies (Amended)(Sec-14)(sec 134). 2. According to byelaw No 31 of the society, total board of directors of restricted ro 15, and one is reserved for female members. 3. Default members are not eligible to contest and cast their votes according to section 20 of the Act. 4. The Secretary of the society elected nominated applications. 5. Elected/ nominated application must be signed by the ten eligible members [sec 14(8)] 6. Nomination applications are rejected when they are issued after the last or without the consent of the candidate [sec14(9)]. 7. Every elected or nominated application must have deposit of Rs.10 and get the voucher or demand
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draft from the society [For male members the deposit amount is Rs. 50] Sec 14 (10)].
board. In the application form, the candidate can write for three symbols, ultimately, the chief election officer has full power to assign symbols. 11. Contestant must present at the time of
scrutinizing the application. 12. According to 13-A the voting candidate must
have the identity card, which has been issued by the secretary or his sub ordinates to cast the votes and sign the voting register.
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13.
disqualification's 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 ect., After the election, among the directors; one is elected as president and vice president. Usually, the president can preside over the meetings.
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SHAREHOLDERS
PRESIDENT
VICE PRESIDENT
DIRECTORS
SECRETARY
ACCOUNTANT
SERVANTS
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SHAREHOLDERS Shareholders are the real owners of the cooperative society, they purchase shares by paying its face value as their shares in the total capital of the society.
They exercise their rights through casting their votes; 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.
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Shareholders are not only the owners, but also the custodians of the society. With the help of directors and secretary, they give their valuable suggestions in the annual general body meetings. As we know that, capital is the main criteria to build up the financial strength of this society. There fore, on the basis of quantum of capital shareholders are to be classified as;
16.22%
5.81%
16.70%
As the name indicates, they are not entailed voting power and exercise their rights in the society affairs.
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Membership amount of the nominal members may be transferred after. Qualification for membership: As per byelaw of the society, the members must be fairness and come under Shimoga District jurisdiction and must attained 18 years old. The board 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 reasons1) 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. Liability of Membership:The liability of the members of the S.K.V.S.S.B is limited to the extent of the full of the shares held by them.
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President President is chief executive body of the society: as he is to preside over all the meetings and functions of the society. Shareholder are given voting power to control and look after day to day's 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 President :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 cans executive officer of the society. Thus, he has the power
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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) I t is not possible for all shareholders in the day to day. Management 0f 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 good in society management as their representatives to manage 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. 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
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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 bank 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, defaulter's surety. 2. He must not be a defaulter of any other cooperative society. 3. He should not be a member of any other cooperative society.
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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 as are enjoyed by the society itself. Thus, the board is entitled to exercise al such powers and do al 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. There are however, the following important
powers of the directors: 1. Directors can set a limit of loan. 2. Interest rate is to be fixed at the board meeting. 3. Power to disqualify the application of the new members. 4. Disqualification of membership of default members (i.e, voting power).
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5. Power to call a special meeting of members. 6. Power to invest the funds of the society. 7. Power to verify the accounts of the society. 8. Power to appoint a secretary and internal auditor. 9. Power to get loans and meeting allowances. There are however, the following important
limitations upon the powers of directors: 1. They must exercise their powers subject to the provisions contained in the co operative societies Act 1912. 2. The board of directors cannot exercise those powers, which are required to be exercised by the members in the general body meeting. 3. They cannot sale or borrow outside funds without the knowledge of society members. 4.
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MEETING OF S.K.V.S.S.B DIRECTORS In case of every co operative society, the meeting of its directors must be held at once every month and at least 12 such meeting a must be held in every year. In case of important decisions or policy matters interim meeting may be called . It is important to note here there is not provision 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 at gives notice to any director at his usual address for communication. It may be 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.
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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 maters decided in the meeting are put in the form of resolution may also be passed by circulation. The resolutions of the board are binding on all the directors and all of them are 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 society's 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
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perform duties in order to prevent the abuse of power. The duties of directors may be given as follows: 1.Duty to call annual every year. 2 Duty to maintain secret of the society 3.Duty to approve balance sheet and profit and loss account before they are submitted to the auditors for their report. 5. Duty to attend board meetings. 6. Duty to send to the registrar of co- operative society copies of special resolutions. 7. Duty to keep the register of members. 8. 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 auditor's report and directors report. 9. Duty to perform the functions of the society personally and not delegate them to other persons. 10. Duty to disclose the interest of the society.
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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 has no original authority. He is required to perform the duties assigned to him under the co- operative societies Avt, 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 ect) 2. To carryout the orders of board of directors. 3. To file with the register of co- operative society, necessary document and returns (i.e. annual return, annual account etc.) 4. To submit and verify miscellaneous statements, forms and returns.
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5. He is required to advise and guide the directors on all important legal business matters affecting the working of the society. 6. He should draft the director's 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 shareholders 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, cahier-clerks, servants support him in carrying out society's day to days activities.
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WORKING OF S.K.V.S.S.B
Introduction Objectives of the society Functions performed by the S.K.V.S.S.B Society Performance To A Glance
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WORKING OF S.K.V.S.S.B. INTRODUCTION: S.K.V.S.S.B day to day work is carried on with the help of eminent staff members. They are much essential to carryout its financial transactions. These peoples are treated as work force tot he financial activities. The society works with total staff members, viz,. Secretary Accountant Internal Auditor Cashier Two clerks Two servants The society has regular meetings to sort out the problems faced by them in caring out their work; they're by achieving effective co ordination and functioning among the staff members.
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OBJECTIVES OF THE SOCIETY: The main objectives of the society are: *To extend credit facilities or financial assistance to the members at reasonable rate of interest. To provide loans to increase agricultural production, animal husbandry, poultry and agricultural
equipments. To provide loans to improve Irrigation facilities to dry lands. To provide co- operative education and publicity of so To border or extend facilities of co-operative society to its members. To encourage the habit of saving among the members. To educate small and middle class people to
understand co- operative principles. Source of funds : The following are the important of source of income of S.K.V.S.S.B.
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a. Share capital: Share capital is a capital, which has collected from its members for the primary primary membership. b) Deposits: It is revenue deposited by the members who have saving habits in accordance with their earnings. FUNCTIONS PERFORMED BY THE S.K.V.S.S.B. The Shimoga Kasaba vyavasaya seva Sahakara Bank performs various functions they are as follows: 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 Kasaba Nitya Nidhi deposits Kasaba NIgadi deposit. Kalpavruksjha deposit
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Bhavishyanidi deposit Shivanagadhu deposit Bhadratha deposit. Total deposits of bank on 31-3-06 Rs 9,28,1097
II Granting of loans and advances: The society grants and advances to its members at the reasonavble rate of interest. The society provides followings types of loans ,viz., Shivanagadhu paper loan Kasaba Nigadhi deposi loan Kasaba NIthya Nidhi loan Gold ornament loan Vehicle loan NSC loan Staff future fund loan Total loans to members on 31-3 06 are 17,15,496.00 Rs.
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In addition to the above said loan the society provides ect., the total loans granted by the society as on 31-3-06 amounted to Rs. 17,15,496.
The table shows the total loans provided by the society over 5 years:
III Invest of funds: The society invests a good portion of its funds in district central city co- operative Bank (Shimoga). The
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total investments of the society as on 31-3- 2006 amounted to Rs 1622 45.0 BENEFITS SCHEMES TO MEMBERS: 1. 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 10,00 /- as compensation. 2. Endowment Education Fund: This scheme is introduced in the 1999. Under this scheme it distributes Rs, 54,710/- to the students of its members. Recently it is also encouraging handicapped students with the help of this fund 3. Safety Locker Facility:
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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 lookers facility an additional deposit is provided to attract customers moderately.
BENEFITS SCHEMES OF ITS MEMBERS: The society also provides loans and advances to its staff members. They are vehicle and festival advances ect,; the vehicle loan is repayable as installment basis i.e,. 60 monthly installments with 17% rate of interest.
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1) Apaddana Fund 2) District Bank Share 3) IPCO Share 4) K.S.M.S hare 5) T.A.P.C.M.S Share 6) P.W T.C.S 7) Kisan Vikas Patra 8) DCC locker Facility 9) Kribco Share 10)District co- operation Trade Association Share 11) DCC staff gratuty fund 12) NSC Total Rs
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Loses Interest of loans Balance of lost Year Interest deposits Balance of lost year Staff expenses Administrative expenses current Year Bal Members Insurance Loan Net Income paid on
Rs 3136859
Profits Income and Expenditure A/c Income Side Govt assistance to members 2005-06 trade profit Hokubaki Fund
Rs
Rs
Interest of deposits
Total 13032541.08
Total 13032541.08
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DEPOSIT SCHEMS AND CREDIT FACILITIES IN S.K.V.S.S.B Deposit scheme Deposit constitute the main source of S.K.V.S.S.B . The society receives deposits from the customers on various accounts . They are as follows:
Savings A/C
Kasaba nitya nidhi deposit shi nagadu deposit Kalapavruksha deposit Bhavishyanidhi deposit Bhadhrata deposit. 1. Saving 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 250 /- and at present interest offered by the society on such deposits is 5%.
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2.Kasaba Nitya Nidhi Deposit: The business class, petty shop owners ect.,
generally opens this account, in this a/c the depositor can with draw money at any time. There is no interest offered by the society on this account. Minimum amount to open a Kasaba NItya NIdhi A/c is Rs 250/-
3.Kasaba NIghadi A/c The society accepts kasaba Nighadi A//c deposits from its members . The maximum period of this deposit is 3 years. The rate of interest offered by the society various from 8% to 9% i.e, up to one year. The rate of interest is 9% P.a and above one years the rate of interest is 8% p.a. 4.Kalpavruksha Deposit: It is also known as cumulative deposit. The
maximum period pf this deposit is 3 years. The rate of interest offered by the society various from 8% to 9% p.a
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i.e,, 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
5 Bhavishyanidhi Deposit: 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 to 9% p.a.i.e,; 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.
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CREDIT FACILITATES IN S.K.V.S.S.B INTRODUCTION TYPES OF CREDIT PROVIDED BY THE SOCIETY. CREDIT FACILITATES OF S.K.V.S.S.B
The S.K.V.S.S.B provides loans and advances to its member. 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 loan is required and the resources where from the borrower is expected to repay have also an important bearing not only on society liquidity, by its desirability too. If the loan is required for non productivity and speculative purpose, the society should think twice before entertaining the proposition.
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TYPES OF CREDIT PROVIDED BY THE SOCIETY: The various types of credit facilities provided by this society are given below: Kisan Credit Crop loan Kalpavruksha Deposit loan Shiv nagadi Deposit loan Vehicle loan Gold Ornament loan Business deposit loan Kasaba Nithy Nidhi loan] Wage based loan Animal Husbanding loan Cloth loan
1.Kissan credit loan :This loan is provided by the society to its members on their own responsibilities without interest for a start period. It provided self loan to its members without
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interest up to 5000 with 15 % rate of interest. This loan is repayable in 100 installments.
2.Kalpavruksha deposit loan Kalpavruksha deposit 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. For member family which does not have permanent property. It provides loan amount at Rs. 30,000/- and for the members family which have permanent property it provides loan up to Rs, 80,0000 the rate of interest in both the cases will be minimum 16% and maximum 18%. The member can repay this loan in 100 installments.
3.Shiv nagadu deposit loan: This loan is given to small farmers for the
improvement their loans. The maximum amount of loan given is Rs. 5000/- and maximum limit Rs 1,00,000/- .
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The
repayment
period
is
limited
to
12
monthly
4. Gold Loans: Gold loan is a loan; Gold loan is a loan provided on the security of gold armaments. The society provided the loan against the gold armaments for a maximum amount of Rs ,1,00,0000. The loan is given on the basis of 60% of the appraiser value of the gold. The rate of interest charged is 17%.
5. Recovering deposit loan 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 tot he extent of 90% of the deposit amount. The rate of interest charged as loan is one rupee more then the interest given for that fixed deposit.
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6 Kasaba Nithya Nidhi Kasaba Nithya Nidhi 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 of interest charged is 17%. It also given subsidy at 3% a rate of interest. On prompt payment of loan.
7. Wage based loan: Wage based loan is a loan provided to its members on the security of member's house property. The society provides maximum amount of house loan up to 5 lakhs. This loan is also provided to purchase a new house. The rate of interest charged by the society is 17%. The society gives subsidy at 3% in rate of interest for prompt repayment of loan.
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8. Animal
husbandry loan:
Provides for all members of the society having own agriculture land. 9. National saving Certificate 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 17%. 10. Vehicle Loan: Vehicle loan is a medium and long term loan. Vehicle loan is provided on the security of two wheeler and three wheeler and four wheelers vehicles. The society provides the vehicle loan 75% of the invoice price of the vehicle. It is repayable in 60 monthly installment w3ith 17% rate of interest for 4 wheeler and 40 monthly installments with 17% rate of interest for 3 wheelers.
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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 analyzed by using statistical tools like average percentage, graphs etc.
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ANALYSIS OF SURVEY 1. Table showing distribution of respondents on the basis of their age group: Age 18-25 26-35 36-60 60 & above Total Male 12 22 36 10 Female 6 4 6 4 No. of Percentag Respondent e s 18 18% 26 26% 42 42% 14 14% 100 100%
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 group between 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 3660 residing at the same area where, the society is situated and they have got regular contact with the society.
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As we know that, age group of 60's 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.
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respondents include a varied occupation including house wives, and have given a good 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 societys
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Employees 30%
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3 Table showing classification of respondents on the basis of their income (per month):
Income (per month) Below 5,000 5,000- 20,000 20,000 and above Total
Among 100 respondents interviewed, income up to Rs,20,000 and above shows negligible. The opinion of income group people 5,000- 20,000 is considerable and the income of up to 5,000 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. Diagram showing classification of respondents on the basis of their Income (Per Month)
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60 54 50
40 36 30
20
10
10
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4.
Table
showing
different
types
of
deposit
schemes of respondents: Number of Respondents Savings A/c 25 K.N.N A/c 6 Kasabha Nidhi A/c 4 Kalpavruksha Deposit 16 Monthly Kalpavruksha 4 Deposit Bhavishyanidhi 21 Deposit Bhadratha A/c 4 Pigmi A/c 4 NSC Deposit 8 Recounting 8 Total 100 Deposits Schemes Percentage 25% 6% 4% 16% 4% 21% 4% 4% 8% 8% 100%
From the above table, it is clear that, the S.K.V.S.S.B accepts savings and Bhavishyanidhi deposits more than other types of deposits. After, Kalpavruksha deposit occupies the major part.
It is advisable
advertisement to attract customer to those schemes, which are performing at poor level.
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5 Table
showing
general
opinion
of
respondents
50% of the respondents have given their opinion that; the interest offered by the society on deposits is 'satisfactory'. 10% and 12% of the respondents have given not applicable suggestion and not satisfactory suggestion. 28% of the respondents have opinioned that the 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 o interest, contrary to this, the customer who have deposited their amount for the short
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period, they are not satisfied about interest rate of the society.
Diagram showing general opinion of the respondents towards the rate of interest on deposit
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6. The above showing the general opinion of the respondents towards working and management of the society: Opinions Excellent Satisfactory Not Satisfactory Total Number of Respondents 39 55 6 100 Percentage 39% 55% 6% 100%
From the above table, it shows that 55 persons have responded that, the working and management of the society is satisfactory. 39 persons have responded that, the working management of the society is excellent. Therefore, only 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 service to its customers. Therefore,
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management should take necessary steps to identify the needs and wants of its customers.
Diagram showing general opinion of the respondents towards the working and management of society.
39
55
Excellent
Satisfactory
Not Satisfactory
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7. Table showing general opinion of the respondents towards punctuality of staff members. Punctuality Staff Members Satisfactory Not-Satisfactory Total of Number Respondents 88 12 100 of Percentage 88% 12% 100
From the above table, it is clear that, 88 percents have given satisfactory opinion about the staff of the society and 12 respondents have given not satisfactory suggestions(Remarks).
Hence in future, the society should provide optimum services to its customers for creating good opinion in the minds of its customers.
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Not-Satisfactory 12%
Satisfactory 88%
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8 The above table shows the different types of loans borrowed by the respondents:
Types of loan K.C.C loan Shivanagadu Kasaba Nithya Nidhi Gold loan Recurring deposit Loan N.S.C Loan House loan Cloth loan Not- Applicable Total
members have taken joint loan and building loan. 18 respondents have given not applicable response, due to unawareness about the loan facility of the society. 10 respondents have taken business loan and 8 respondents have taken jewellary loan, 4 respondents have taken
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self-loan, vehicle loan, 2 respondents have been taken N.S.C and house loan.
Thus, the society should take measures to provide more loan facilities and awareness of its customers towards facilities.
9. Table showing general opinion of the respondents towards the loan procedure:
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From the above table, 6 respondents have given opinion that loan procedure is very tedious. 18
respondents have given not applicable suggestion and 30 respondents have given not so tedious response and 46 respondents have opinion that loan procedure is simple. This is to be suggesting that, the society should simplify its loan procedure and formalities to understand the customers easily.
50 45 40 35 30 25 20 15 10 5 0 Simple Not-so tedious 6 18 46
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Very-tedious Not-Applicable
10 Table showing general opinion of the respondents towards the rate of interest on loans:
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The survey is conducted for 100 respondents, towards the rate of interest on loan. Group 1 and 2 give considerable response an 18 respondents have given not applicable suggestion. It shows from the above survey that, the rate of interest charged on the loan is affordable and customers are satisfied with this rate to get maximum loan facilities as and when required. The negligible portions of
Diagram showing general opinion of the respondents towards the rate of Interest on loans:
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Satisfactory 38%
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11 The above table shown the opinion of the respondents towards the service of the society:
From the above table, it shows that respondents have responded that the service provided by the society is excellent. 36 persons have responded that, the service given by the society is satisfactory. And 38 respondents have responded that service given by the society is good. It is advisable for the society, to give more importance to the customers who have not satisfied with present society services and their opinion has to be collected at the annual general body meeting.
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MAJOR FINDING OF THE SURVEY The major findings of the survey are: Major number of respondents comes to know that about the society through society's advertisement. It is well and good that some respondents have through friends and from neighbors. More Number of respondents has expressed their opinion that, the rate of interest charged on advance is considerable .Where as, rate of interest on deposit is
low. But, some have opinion that rates of interest charged on advance its high. At the end borrower have good opinion about process involved in availability of the loan. Most of the numbers have given their opinion that response of the society. The service provided by the society is satisfactory.
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From the survey, it is observed that, the members have a good opinion in their minds regarding the service provided by the society. Therefore, it is advisable for the society, to maintain excellent services in the future and give more and more services to its customers. The management of the society had administered lot of services and deposit schemes to its customers. When the customers face any problem that can be solved by the management at the earliest time. At the annual general body meeting , number of discussion was held and problems were solved with the help of existing management setup. Hence, it is said that, S.K.V.S.S.B as an excellent management and its staff. PROBLEMS SUGGESTIONS AND CONCLUSION Problems and suggestions:
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While the survey was conducted the customers of S.K.V.S.S.B complained about a number of problem, they are as follows:
1 Lack of Staff Staff is an essential element in providing facilities to the members. While getting the response. The customers have made complaint about scarcity of staff. The management should take necessary steps to appoint more employees to fulfill the needs of the customers. This may result in reduction of burden of the employees. There fore management should make arrangement for staffing in the society sufficiently. 2 Rate of interest on Deposits: The society should take necessary steps to increase the rate of interest offered on deposits. 3.Enquiry Counter
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Facilities are known to the members through publicity and wide turnover, but unfortunately, society has a number of illiterate and innocent members for them, enquiry counter is essential to know about the society's facilities. 4. Complaint Box : Sometimes, members can highlight their
grievances about the translations of the society through complaint box. There fore the management should take necessary steps to provide complaint box to members for solving their problems. the
5 Simplification of loan procedure: Only the educated and business knowledgeable persons understand the procedure of sanctioning the loan. It creates problems to a common man. Hence, it should be simplified with minimum risk.]
6 Interest On Loans:
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Total disbursement is an indication of solvency of the society with minimum rate of interest, but in S.K.V.S.S.B. the rate interest charged on loans is comparatively high. As for as possible the society should reduce the rate interest on priority sector and it is advisable for the society to get some amount of income from other facilities. That means the society should invest its funds in profitable ways. 7 Locker Facilities : The society should provide lockers facilities to the members with minimum locker commission. 8 New Loans and advance Schemes: During the survey, some of the customers opinioned that, the types of loans are few. There fore the society should take necessary steps to increase its loan facilities to building construction. Loan on Jewell Aries and other valuables, which are put at society locker. This
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9 Branch Expansion: Since inception of the society, the members have been increasing due to its handsome facilities. Hence, the membership has been overflow and it has proved more work to the staff members. With the help of opening one more branch, over flow can be minimized. 10 Lack of current A/C Facility: Large numbers of society borrowers are related to business class and petty shop owners. They are very much interested in opening the current a/c facilities for their day to day transaction. Therefore, it is advisable for the society to improve current a/c scheme for the benefit of its customers. 11 Use of mechanical devices: Improvement should be made in accounting
software even through; the society has made a milestone in introducing "Kannada " as a medium in computers.
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CONCLUSION "A co operative society is a form of business organization in which financially weak persons voluntarily associate together as human beings on the basis of equality of opportunity and control, equality of
distribution of profits an mutuality for the promotion of their common economic interests".
Democratic
management
is
the
fundamental
principle of a co- operative society. As a co operative society operates on a local scale, generally, all the members must attend the meetings since in the
meetings the policies, which promote common interest, are laid down. The study was under taken with an objective to analysis working and management of S.K.V.S.S.B. and to know how the society satisfies the credit needs of its
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members. The study was also made about how best the members utilize the credit schemes of the society. Suggestions have been given for improving the working conditions of the society. The study reveals that the society has fulfilled the objectives for which purpose it was set up. From one year to another year, the society has gained more and more profit and has economic progress. The society has worked a lot for the upliftment of the poorer class of people to come forward . It has been observed that recovery of loan is more than expected. It has been strengthening the financing position of the society and its member's financials soundness. The recovery of loans is very much satisfactory. At the same time, the borrower member should also assist in improving society's performance by proper repayment of loans borrowed. This helps not only the society, but also the members themselves. Therefore, it
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FOR ALL AND ALL FOR EACH" principle ( co opera ration) and the society can flourish better by proper cooperation of director's and its valuable shareholders
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QUESTIONNAIRE SHIMOGA KASABA VYAVASAYA SEVA SAHAKARA BANK 1. Name: ............. 2. Age : 18-25 36.60 3. Sex: Male [] [] [] 26-35 []
4. Occupation: Business [ ] Employee [ ] Others 5. Annual Income: Upto 5000 5000-20000 20000 above [] [] [] []
No
[ ]
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8. If yes what type of A/c are you having ? Saving A/c Kasaba Nitya Nidhi A/c Shiv Nagadu A/c Kalpavruksha A/c [ [ [ [ ] ] ] ]
Not satisfactory [
10. What is your opinion about working at bank? Excellent Satisfactory Not- Satisfactory [ [ [ ] ] ]
11. What is your opinion about members at the society? Satisfactory Not Satisfactory [ [ ] ]
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Kisan Crerdit loan Shiva Nagadu paper loan Kalpavuksha deposit loan Others
[ [ [ [
] ] ] ]
14.How did you come to know about loan facility? Friends [ ] [ ] ] Relatives [ others [ ] ] [ Society advertisements 15.Interestcharge on loans Attractive ] 16 The process involved in granting loan is Simple Very tedious Yes [ [ [ ] ] ] No [ ] Not so tedious [ ] [ Satisfactory
17. Do you prefer any new deposit and loan schemes? 18. If yes, why?.. 19. What is opinion services at the bank? Good [ ] [ ] Not Excellent [ ] Satisfactory [ ] Excellent
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BIBLIOGRAPHY
Indian Economics : Agarwal Business organization : B.S Raman Oxford Encyclopedia Britannica encyclopedia Annual Reports of the Society
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