Field Training Report

on pacs
(The lambra Cooperative Agriculture
Service Society Ltd)

Submitted to: Agriculture Co-operative Staff Training Institute
Jalandhar
Submitted by: TARA CHAND
Clerk cum
Data Entry Operator
DCCB- KAPURTHALA

ACKNOWLEDGEMENT

As per task assigned to me by authorities of the bank. I would also like to thank the Society staff for their full cooperation during my field duty for providing me sufficient information to understand the working of the society. I undertook the training at The Lambra Cooperative Agriculture Service Society Ltd for one week. I want to acknowledge the sincere assistance by Mr Sanjeev sharma. Last but not the least I would like to thank faculty for giving the overview of what we have to do in the society. . Secretary of LAMBRA CASS. I also want to show my gratitude towards society members with whom I interacted and came to know about their experience with the society. I am presenting this Field Learning Report based on my training at the society. It has been very informative practical experience for me and I extend my gratitude to the department for making this field learning a part of our training.

Punjab. This society is affiliated to jalandhar Central Cooperative Bank . Lambra CASS is located at lambra village in district jalandhar. Most of the members are farmers while other members are carrying out their small businesses. Area of operation of Lambra CASS covers four nearby villages.INTRODUCTION Lambra cooperative agricultural service society(CASS) established in ____________. President: Sh.BALDEV SINGH . lambra Cass has 9 board of directors and one secretary. . namely• Lambra • Lamri • Hussanpur • Husainpur Total number of members of Tira CASS is 578 as on 30-6-2014. SANJEEV SHARMA Secretary: S.

Procedure for Kisan Credit Card(KCC): • Application is given by the member to the society to avail the loan through KCC. • Documents required along with the application are Ration Card and Land Record (Fard Jamabandi) • The society checks the details in the application form and then fixes the MCL for that member according to the land record given along with KCC and pass book. • Letter of continuity is given by the member to ensure that Demand Pronote will be valid till the loan limit exists. • Secretary of the society sends a report to the bank branch to sanction the fixed MCL to the member. • Cash Credit Agreement is signed between the member and the society stating the terms and conditions of the loan. • The member writes a letter to the president of the society to give him/her the rights to withdraw the money up to the sanctioned limit. . • The applicant provides with the Demand Pronote ensuring that he/she will return the loan as per the terms and conditions of the society.

Area of Land on which production of crop has to be done MCL for a particular crop = Scale of Finance for that crop x Area of land According to the area of land the member possesses. MCL depends on 2 factors – 1.Possessing land more than 5 acres Imbalances of Lambra CASSImbalances of a society means the difference between the recovery at CASS/PACS level and at Bank level. Nature of crop for which loan has to be taken 2.Possessing land up to 5 acres Big Farmers . .For the purpose of minimizing these imbalances. Registrar gives yearly review of the MCL to the societies which society has to follow before giving credit to the members. the members are categorized as – Small Farmers .FIXATION OF MCL: MCL is fixed on the basis of guidelines given by Registrar of cooperative societies.reconcilation of accounts of bank and pacs is done.

Father / Husband name b) Village to which the member belongs. State Level Bankers Committee and concerned officials of Punjab State Cooperative Bank. then they are transferred to the general ledger 3.20% of Component A & B towards repair and maintenance of farm assets and Insurance MAINTENANCE OF MEMBER ACCOUNTS AT THE PACS LEVEL • Member account ledger is maintained at the society.SCALE OF FINANCE FOR DIFFERENT CROPS: Scale of finance for various crops is fixed by Registrar office on recommendations of State Technical Committee.Following columns are present in the member register a) Name of the member. Scale of finance helps prepare MCL for various crops for different components.Cash 2) Component B . NABARD. • Daily transactions are recorded in the day book.Fertilizers and seeds required for raising crop 3) Component C . Age and Occupation . The different components of MCL are – 1) Component A .10% of Component A & B towards post harvest / household / consumption requirement 4) Component D . one register is kept in the bank. Agriculture Department. As per recent report scale is fixed between 13000 and 35100 for various crops.

For a particular farmer MCL is calculated on number of acres of his . Cooperative Societies Punjab. a register known as MCL register is being maintained by the cooperative society. Village.Pesticides and insecticides are provided by Markfed and IFFCO. Caste. the MCL (Maximum Credit Limit) of each member is calculated as per the landholding of that member.c) Date of becoming member of the society d) Share Money e) Signatures / Thumb impression of the member f) Date of leaving membership of the society g) Name. Payment to be received through deposit vouchers in the bank during recovery. • Fertilizers. and Age of Legal Heirs of the member. To determine the MCL of its members. Father Name. AGRO SERVICE CENTER ACTIVITIES • Ghee provided by food supply dept. VOUCHING There are 3 types of vouchers that are used in the society – * Transfer Voucher * Receipt Voucher * Payment Voucher Cheque book is issued to each member through which he withdraws money from his KCC account and also pays for fertilizers. MAXIMUM CREDIT LIMIT As per the Scale of Finance fixed by Registrar.

Address Signature (amount) A (amount) B (amount) C (amount) D Total (amount) A (amount) B (amount) C (amount) D Total LAND RECORD REGISTER In this register the landholding of every farmer is recorded .e MCL Register for Rabi and MCL register for Kharif.operational land holding. The outlay of MCL Register is as follows- Rabi __acre Kharif ___acre Member’s name Father’s name Account no. . MCL register include Member Name. account number.Village name. amount of credit required against the farm land and signature of the member.This register is very useful in calculation of MCL of the member as per land owned/held by the member. MCL register is divided into two section based on season i. name of the crop. The amount sanctioned to a farmer is multiple of his share money held with society. area of cultivation of that crop. MCL REGISTER Lambra CASS has maintained a MCL register in which there is record of credit taken by the society member against a particular crop.

• Entry of the stock is kept in the stock register • Stock is issued to member on demand in accordance with his MCL limit and a transfer voucher is collected from him. Account name and Member’s land area under cultivation(in acre) STOCK HANDLING • Fertilizer such as Urea and DAP are given by MARKFED who are paid from the CC Fertilizer account through demand drafts.Ghee .DAP. In Land record register there is name of the member. Urea Outlay Of Stock RegisterName of article Date Particula Openi Recei rs ng pt balanc durin Total Issue d Closin Remar g ks balan . his/her village name. Fertilizers. The Unit used to express the area of land is Acre.Lambra CASS has maintained land record register in which there is record of all the land that has been mortgaged to the Society. Commodities present in stockHousehold Commodities. Oil.

Gram. Linseed. Peanut. cotton. Examples. As per the Latest Data (as on 31.)President of the society. Soyabean. DEMAND COLLECTION BALANCE • Prepared in general ledger on 28/2 for rabi crops • Prepared by 30/9 for kharif crop advancement Rabi crops:.e g day ce Stock verification The stock is verified by the following pesons : 1. Sugarcane. Maize.The seeds are sown in November/december and harvesting begins in April/May.1. Barley. Pea. Examples.Kharif crop sowing starts in June and and harvesting is done in October.) Concerned Inspector . Guar. Sunflower. Kharif crops:.Wheat. Millet. Potatoes. Deptt. of Cooperation Punjab 2.) Concerned Branch Manager 3. Mustard.2015) :- Name of Society Demand Imbalances A/OD CURRENT TOTAL .Rice.

Assistant Registrar can issue arrest warrant if the defaulter is not responding even after receiving the notice. the assets of loanee can be attached for auction in near future if loanee is not paying back the dues.5% in excess to prescribed rate. As last resort.A (statement showing receipts/recoveries from members). if PACS is not able to get his recovery. PACS charges penal interest of 1. PACS/CASS fills Recovery Annexure based on the recovery they get by members. As in the case of defaulter. then they provide Recovery Annexure to concerned bank along with recovery money.Lambra CASS 2. PACS deposits the recovery in the bank with Annex. member can pay back his loan to PACS/Bank. The recovery process of PACS is very strong. . In case member is not able to pay his loan back within time.8 lac 22 lac 102lac 124 lac RECOVERY MANAGEMENT AT PACS LEVEL: Crop Advancement period Recovery period Kharif 01/04 to 30/09 01/10 to 31/01 Rabi 01/10 to 28/02 01/04 to 30/06 Within stipulated period.

ASSESSING FINANCIAL POSITION OF CASS/PACS Lambra CASS’s Financial Condition.A co-operative society shall prepare a balance sheet. as may be laid down by the Registrar. it is found that the society is in profit as the net profit as on 31/3/2014 is 5.The financial position of PACS can be accessed from the balance sheet and profit loss sheet. • Trust between farmers for Lambra Cooperative Agricultural Society • Communication gap is less as compared to Commercial banks.35 lacs. profit and loss account. SWOT ANALYSIS Strengths• Presence of society at doorstep of its potential customer. Maintenance of account book and other record – A co-operative society or class of co-operative societies shall maintain the account books and other records in such form and manner as may be directed by the Registrar by a general or special order from time to time. Preparation of balance-sheet and other accounts. By analysing the balance sheet of the Lambra CASS. trading account and such other statements relating to accounts as may be specified. • The uniqueness of products that society has got to offer its members is its biggest strength. • Farmer friendly schemes . by the Registrar. • It offers less rate of interest on loans as compared to money lenders. from time to time. as soon as possible after the close of the co-operative year in such form.

. • They can add number of other essential commodities to enhance their profit.) • The will like to have a system of deposits to advance loans on their own. Threats : • Commercial Banks are capturing the market share of cooperative societies. • Limited varieties of commodities Opportunities : • They can pool in large amount of funds by increasing the members • Technical advancements in agriculture will bring more opportunities for PACS. dairy loans. deposit schemes. • Political interference hinders the progress. insurance.Obsolete way of office work which discourages youngsters to be the member. • Can escalate their potential towars various other schemes (e.g. vehicle loans etc. • They can enhance their business by providing supplements of organic farming. • No provision for Agro Service Centre in Lambra CASS • Shortage of professional staff to manage the functions of society.• Group pressure helps in the recovery of loans Weakness• Poor infrastructure • Lack of technical advancements • Limited involvement of government agencies so as to promote society. • Less awareness among people about benefits of being member of society.

as may be provided in the bye-laws. GENERAL MANAGEMENT OF COOP. (b) election. The committee members once elected choose their President. Election for a new committee is to be conducted 90 days before the expiry of the term of previous committee. These committee members are elected from among the members of the cooperative society after every 5 years. SOCIETY The general management of the PACS lies in the hands of Board of Directors. . if any. Vice-President and Committee Members. of the members of the committee other than nominated members. Vice President and Secretary among themselves. These Board of director includes President.• Money lenders at the village level provides speedy loans which makes the customers to go to money lender rather than bank. Annual general meeting -A general meeting of a co-operative society shall be held in a year for the purpose of(a) approval of the programme of the activities of the society prepared by the committee for the ensuing year. In an eventuality where the committee is unable to complete election before the expiry of its term an administrator can be appointed for a period of 6 months The final authority in a co-operative society is vested in the general body of members. Special general meetings – The committee of a co-operative society may. at any time call a special general meeting of the society and shall call such meeting within one month after the receipt of a requisition in writing from the Registrar or from such number of members or a proportion of the total number of members. (c) consideration of the audit report and the annual report. The tenure of the committee is 5 years. (d) disposal of the net profits . Each society member has one vote irrespective of his number of shares. and (e) consideration of any other matter which may be brought forward in accordance with the bye-laws.