Professional Documents
Culture Documents
Fa
Fa
PROJECT ON
AN ANYLTICAL STUDY OF COOPERATIVE SOCIETY
W.R.T. SHANTIVAN C.H.S.
SUBMITTED BY
ANUPRIYA DHAMANSE
ROLL NO.: 25
ADVANCED ACCOUNTANCY PART 1
ADVANVCED FINANCIAL ACCOUNTING
IN PARTIAL FULLFILLMENT OF THE DEGREE OF
MASTER OF COMMERCE
2015-16
UNDER THE GUIDENCE OF
PROF. NEELAM SHAIKH
VIDYA PRASARAK MANDAL, THANE
K.G.JOSHI COLLEGE OF ARTS &
N.G. BEDEKAR COLLEGE OF COMMERECE
CHENDANI BUNDER ROAD, THANE-400601
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Declaration
I, student of M.Com. (Part - I) Roll No. : 25 hereby declare that the
project title AN ANLYTICAL STUDY OF COOPERATIVE SOCIETY
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PLACE
Anupriya Dhamanse
ROLL NO: 25
DATE
ACKNOWLEDGEMENT
It is indeed a great pleasure and proud privilege to present this project work.
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I take this opportunity to express my gratitude and acknowledge to all the individuals
involved both directly and indirectly for their valuable help and guidance.
This project has been an attempt to give information about the AN ANALYTICAL
I expressed my deep since of gratitude to founder and president of Vidya Prasarak Mandal. I
express my heartful thanks to our honorable Principal for her constant support and
motivation.
I express special thanks to my guide Prof. NEELAM SHAIKH under whose guidence the
project conceived , planned and executed.
I would also like to thank the college library and its staff for patiently listening and guiding
me. I would like to thank my family also.
Thank You.
INDEX
CHAPT
ER NO
SUB
CHAP
TITLES
PAGE
NO
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1.1
Introduction
1.2
1.3
1.4
11
1.5
12
1.6
13
1.7
14
2.1
Research methodology
16
2.2
Objective of study
17
2.3
Literature review
18
3.1
20
3.2
Company profile
24
Annual report
26
Schedule
27
4.1
Conclusion
31
4.2
Bibliography
32
CHAPTER 1
1.1 INTRODUCTION
So those who want to work together with some common economic objective can form a
society which is termed as co-operative society. It is a voluntary association of persons
who work together to promote their economic interest. It works on the principle of self-help
as well as mutual help. The main objective is to provide support to the members. Nobody
joins a cooperative society to earn profit. People come forward as a group, pool their
individual resources, utilise them in the best possible manner, and derive some common
benefit out of it.
In the above example, all producers of milk of a village joined hands, collected the
surplus milk at a common place and sold milk and milk products in the market. This was
possible because of their joint effort. Individually it would not have been possible either to
sell or produce any milk product in that village. They had formed a co-operative society for
this purpose.
In a similar way, the consumers of a particular locality can join hands to provide
goods of their daily need and thus, form a co-operative society. Now they can buy goods
directly from the producers and sell those to members at a cheaper price.
According to [1, 2, 3, 4, 5, 6, 7 and 8] co-operative organization is an association of
persons who operate their private business enterprises or households and share at least one
common need; a group of persons in the sociological sense. They have joint action by the
group towards attainment of the group goals through economic betterment her members and
mutual help. Co-operative organization is more of rural base and grassroots oriented business
unit [2, 3, 4 and 5].
They buy goods directly from the producers or manufacturers and thereby eliminate
the middlemen in the process of distribution.
.
2. Producers Co-operative Society: These societies are formed to protect the interest
of small producers by making available items of their need for production like raw
materials, tools and equipments, machinery, etc.
.
3. Co-operative Marketing Society: These societies are formed by small producers
and manufacturers who find it difficult to sell their products individually. The society
collects the products from the individual members and takes the responsibility of selling
those products in the market.
.
4. Co-operative Credit Society: These societies are formed to provide financial support
to the members. The society accepts deposits from members and grants them
loans at reasonable rates of interest in times of need.
.
5. Co-operative Farming Society: These societies are formed by small farmers to
work jointly and thereby enjoy the benefits of large-scale farming.
6. Housing Co-operative Society: These societies are formed to provide residential
houses to members. They purchase land, develop it and construct houses or flats and
allot the same to members. Some societies also provide loans at low rate of interest to
members to construct their own houses.
number of members for any co-operative society. However, after the formation of the
society, the member may specify the maximum number of members.
II. Voluntary Association: Members join the co-operative society voluntarily, that is,
by choice. A member can join the society as and when he likes, continue for as long as
he likes, and leave the society at will.
III. State control: To protect the interest of members, co-operative societies are placed
under state control through registration. While getting registered, a society has to submit
details about the members and the business it is to undertake. It has to maintain
books of accounts, which are to be audited by government auditors.
IV. Sources of Finance: In a co-operative society capital is contributed by all the
members.However, it can easily raise loans and secure grants from government after
its registration.
V. Democratic Management: Co-operative societies are managed on democratic lines.
The society is managed by a group known as Board of Directors. The members of
the board of directors are the elected representatives of the society. Each member has
a single vote, irrespective of the number of shares held. For example, in a village credit
society the small farmer having one share has equal voting right as that of a landlord
having 20 shares.
VI. Service motive: Co-operatives are not formed to maximise profit like other forms of
business organisation. The main purpose of a Co-operative Society is to provide service
to its members. For example, in a Consumer Co-operative Store, goods are sold
to its members at a reasonable price by retaining a small margin of profit. It also
provides better quality goods to its members and the general public.
VII. Separate Legal Entity: A Co-operative Society is registered under the Co-operative
Societies Act. After registration a society becomes a separate legal entity, with
limited liability of its members. Death, insolvency or lunacy of a member does not
affect the existence of a society. It can enter into agreements with others and can
9 | Page
a Certificate of Registration.
Requirements for Registration:
1. Application with the signature of all members
2. Bye-laws of the society containing:
(a) Name, address and aims and objectives of the society;
(b) Names, addresses and occupations of members;
(c) Mode of admitting new members;
(d) Share capital and its division.
representatives are not experienced enough to manage the society. Again, because of
limited capital they are not able to get the benefits of professional management.
III. Lack of Motivation: Every co-operative society is formed to render service to its
members rather than to earn profit. This does not provide enough motivation to the
members to put in their best effort and manage the society efficiently.
IV. Lack of Co-operation: The co-operative societies are formed with the idea of mutual
co-operation. But it is often seen that there is a lot of friction between the members
because of personality differences, ego clash, etc. The selfish attitude of members
may sometimes bring an end to the society.
V. Dependence on Government: The inadequacy of capital and various other limitations
make cooperative societies dependant on the government for support and patronage
in terms of grants, loans subsidies, etc. Due to this, the government sometimes
directly interferes in the management of the society and also audit their annual
accounts.
accounting year i.e. financial year, commencing on 1st April and ending on 31st march next
year. Accordingly, since 1993, the co-operative year also has been changed to Financial Year.
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Chapter 2
2.1 Research Methodology
The researcher has used descriptive type of research for the project. Descriptive
research is very common in business and other aspects of life. In fact, most of the marketing
research youve heard about or participated in can be categorized as descriptive research.
With a descriptive research design we are usually trying to describe some group of people or
other entities. Descriptive research, is used to describe characteristics of a population or
phenomenon being studied.
Descriptive research does not fit neatly into the definition of either quantitative or
qualitative research methodologies, but instead it can utilize elements of both, often within
the same study. The term descriptive research refers to the type of research question, design,
and data analysis that will be applied to a given topic. Descriptive statistics tell what is, while
inferential statistics try to determine cause and effect.
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study is an attempt being made to identify the financial performance and how the
performance is going on for the last five years, of Indian Farmers Fertiliser Co-operative
Limited, popularly known as IFFCO, on the basis of establishing relationship between the
items of balance sheet and profit &loss account. For establishing the relationship various
types of ratios such as solvency, liquidity, activity and profitability are used. The period of
study is taken from the year 2007-08 to 2011-12.t can be concluded from the study of 5
financial periods of IFFCO that the maximum Financial Indicators of IFFCO are not at a very
good position. From the analysis of main Financial Indicators it is clear that Operating Profit
to Turnover Ratio, Fixed Assets Turnover Ratio, Debt Equity Ratio, Current Ratio, Liquidity
Ratio, etc are at a desirable position. However, companys Return on Capital Employed,
Profit before tax to Turnover, etc were undesirable as compared to Previous Years.
Anil Kumar Soni and Dr. Harjinder Pal Singh Saluja (2012) in the article Role of
Cooperative Bank in Agricultural Credit : As Study Based on Cahhattisgarh The
cooperative banking sector is one of the main partners of Indian banking structure, the
cooperative banks have more reach to the rural India, through their huge network of credit
societies in the institutional credit structure. The cooperative sector has played a key role in
the economy of the country and always recognized as an integral part of our national
economy. Cooperatives have ideological base, economic objects with social outlook and
approach. The cooperative covers almost all cent percent villages in India. The cooperative
form of organization is the Ideal Organization for economically weaker sections in the
country. According to recent study by World Bank and National Council for Applied
Economic Research, the Primary Agriculture Credit Societies (PACS) amount for about 30
percent of micro credit in India. This paper attempts to analyze the role of co-operative bank
in agricultural credit.
Dr. M. S. Ramananda And Dr. M. Jayaprakash ( 2012) in the article Impact on
Vydhanadhan Committee Recomadations Of Wangaplly Primar Agricultural Cooperative
Credit Society This study was an attempt to decipher the factors, which contribute to the
financial health of the PACS, which form the base of the short-term cooperative credit
structure prevalent in India. The study considered recovery performance of the PACS as the
most suitable indicator of their performance. The results indicate that as the PACS have
drifted from some of the core principles of cooperation, their recovery performance has
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suffered. As membership size has grown over the years in case of the PACS, their recovery
has taken a beating because peer pressure, which ensures recovery, has gradually weakened.
Thus there is a need to relook into the issue of optimal member size of the cooperatives in the
interest of their viability. In conformity with popular perception, governments contribution
to the share capital is found to be detrimental for the recovery performance of the PACS.
Governments contribution in share capital not only gives it a hand to meddle with the affairs
of the PACS; it might also be inducing indulgence amongst members because of the comfort
of government bail out in case of difficulty. The latest amendment in the Vaidyanthan
Committees recommendation that Government can retain 25 per cent of equity capital in
case of PCAS needs to seriously given a second thought.
Chapter 3
3.1 Formation of a Co-operative housing Society
A Co-operative Society can be formed as per the provisions of the Co-operative Societies
Act, 1912. At least ten persons having the capacity to enter into a contract with common
economic objectives, like farming, weaving, consuming, etc. can form a Co-operative
Society.
Formation of Co-operative Housing Society:- Practically every developer has to form a Cooperative Housing Society at one point of time or another. With the limited amount of options
available with regard to management of the affairs of the building i.e.
Condominium
Private Limited Company and
exaggeration to state that in at least 90% cases particularly in Mumbai the Promoters and/or
the Builders have formed a Co-operative Housing Society.
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There are basically four types of Co-operative Housing Societies connected with the
housing
(a) Open Plot Societies- members purchase or take one lease a plot of land and they construct
the building.
(b) Flat Owners Societies- When a builder constructs flats and sells them to Flat Owners, the
Society when formed is called Flat Owners Society
(c) Tenant Societies- When Landlord forms a Society of tenants, it is called Tenants Society.
(d) Housing Board Societies- When a Society is formed by Allotted of flats and building is
constructed by the Housing Board Authorities, i.e. Mumbai Housing and Development
Board, then the Society so formed is of the type of Housing Board Society
The procedure for Registration of a society begins with electing a Chief Promoter in a
meeting of the Promoter.
Normally, the name reservation proposal should be accompanied with the signature of at
least Promoters who have attended the meeting. It is a common belief that the Society should
consist of at least 10 members.
Flat means a separate set and self-contained set of premises used or intended to be used or
intended to be used for residence, or office or show-room, or shop, or go down and includes a
garage, or dispensary, or consulting room, or clinic, or flour mill, the premises forming part
of a building and includes an apartment.
The Chief Promoter should submit Registration Proposal to the Registering Authority
within a period of 3 months from the date of issue of Letter of Reservation in the name of the
proposed Society.
The documents that are normally to be submitted to the Registering Authorities are as under
1. Application for registration of Society in Form A along with Statement A. Enclosure to
application for Registration as per Rule 4(1) of Maharashtra Co-operative Societies Rules,
1961.
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2. Information about proposed society in Statement B (vide Govt. Circular dated 2-5-1980).
3. Information about promoter members of the proposed society in Statement C (vide Govt.
Circular Dt. 2-5-1980).
4. A Statement of Accounts as per Form D.
5. Model Bye-laws.
6. Bank Balance Certificate.
7. R.B.I. / Treasury Challan for payment of Registration Fee of Rs. 500/-.
8. Title Clearance Certificate from an Advocate
9. A true copy of the approved Building Plan.
10. Letter of Authority Granting permission to commence construction work/Completion
Certificate (if applicable).
11. Affidavit on Rs. 20/- Stamp Paper from at least 10 promoter members to the effect that
they are residing in the area of operation of the Society (Proposed), made before a Competent
Authority.
12. Affidavit from the Chief Promoter on Stamp Paper of Rs. 20/- executed before the
Competent Authority in form Y.
13. Certified True Copy of agreement made on Stamp paper and registered between the
builder, promoter and purchasers of flat.
14. Where the promoter members are firms/ companies, a letter of authority from such
firms/companies authorizing the promoter to sign on behalf of firm/company.
15. In case of such proposed societies, names of 60% of the flat holders of the total number of
flats constructed or proposed to be constructed as per the plan approved, must be included in
Statement A to be attached to the Registration Proposal.
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b) Stamp duty:- Present rates of stamp duty for residential premises in the city of Mumbai
are RS. 38,750/- on Rs. 10, 00,000/-. Thereafter it is @ 8% for the additional value. The rate
of stamp duty for shops/Galas/office Premises and Garage even if used for car parking is 10%
in Mumbai Stamp duty has to be paid on the agreement Value or the market value of the
property whichever is higher. Stamp duty has to be paid every time the flat is being sold.
Stamp duty has to be paid even if it is a transfer within family.
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November 2012.
2.
salary per person from Rs 3,300/- to Rs 5,500/- from July 2013. On an average 11 guards are
employed in two shifts.
3.Administrative Charges:
The employee emoluments have decreased by Rs 42032/- mainly due to absence of a
Manager when the work was carried out by the Hon Secretary in that interim
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period.
The legal expenses have decreased by Rs 1,76,495/- mainly due to one off
expenses incurred last year
case.
The miscellaneous expenses have increased by Rs 12,569/-
mainly due to
4.
Cleaning and Maintenance Rs 26850/- - this increase was due to increase in charges
The pest control expenses have increased by Rs 2,03,660/- mainly due to termite
Sr No
Type of Member
Ordinary Members
As of
31.3.2011
Shar
e
Nos
Capit
al
Rs
18
889,65
7
2
0
0
17,05
0
50
18
9
906,7
50
As od
31.3.2012
Shar
e
Nos
Capit
al
Rs
187
889,65
2
0
189
0
17,05
0
50
906,7
50
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LIABILITI
ES
As
at
As
at
31st March
2013
31st
March2012
SHARE CAPITAL(AUTHORISED)
15,00,000. 30000 Shares of Rs 50/- each
15,00,000
A
s
at
ASSETS
31st March
2013
46,66,228
.54
Schedule 4
9,06,750. ISSUED, SUBSCRIBED & PAID UP
00
18,135 Shares of Rs 50
9,06,750
.00
each fully
83,44,041.0
INVESTMENTS
0
As per Schedule 5
130,49,263
.00
paid up
134,15,644.
RESERVE AND OTHER
87
FUNDS As per Schedule 1
CONTRIBUTION FROM
181,45,612.
00
MEMBERS As per Schedule 2
170,54,570
.45
DUES FROM
10,94,310.0
MEMBERS As per
5
5,95,857
.00
Schedule 6
181,45,612
.00
4,88,656
.00
Schedule 7
CURRENT LIABILITIES &
15,91,616. PROVISIONS As per Schedule 3
71
17,11,385
.42
340,59,623.
58
15,25,206
.00
393,43,523
.87
FIXED ASSETS
171,28,034.3 As per Schedule 8
7
170,31,394
.48
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19,86,918
.85
393,43,523
.87
Sd/-
Sd/-
Sd/-
Sd/-
(S. D. YARDI)
R.P Kalyanpur
Vivek Kalbag
Chairman
Hon.
P
LACE: MUMBAI PLACE: MUMBAI
DATED: 16/07/2013
DATED: 16/07/2013
As at
31st March2012
PARTICULARS
Rs
31st March2013
Rs
Rs
RESERVE FUND
12,98,764.60
2,600.00
-
96,126.00
13,97,490.60
1,600.00
25,000.00
1,33,180.00
15,57,270.60
SINKING FUND
Balance as per the last Balance Sheet
Add : Contribution during the year Add : Interest
24,78,855.00
68,520.00
1,97,374.00
27,44,749.00
68,520.00
2,57,969.00
27,44,749.00
30,71,238.00
3,61,854.00
24,996.00
24,996.00
3,61,854.00
25,000.00
33,887.00
33,887.00
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3,61,854.00
3,86,854.00
35,30,319.76
48,000.00
-
2,57,622.00
58,514.00
34,22,979.76
35,000.00
2,70,246.00
3,19,486.00
1,51,990.00
34,22,979.76
37,28,225.76
CONTINGENCY FUND
Balance as per the last Balance Sheet Add :
90,276.00
49,920.00
1,376.00
83,058.00
58,514.00
5,90,636.00
6,39,712.00
49,076.00
65,387.00
6,39,712.00
7,05,099.00
33,17,919.51
48,48,859.51
37,36,775.00
72,77,717.00
70,54,694.51
121,26,576.51
22,05,835.00
45,20,693.42
48,48,859.51
134,15,644.87
76,05,883.09
TOTAL
170,54,570.45
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As at
31st March2012
PARTICULARS
Rs
31st March2013
Rs
Rs
2,45,845.00
22,000.00
36,660.00
Caution Money
77,400.00
Security Deposit
2,68,428.00
3,50,400.37
25,840.00
65,400.00
2,68,428.00
9,500.00
12,591.00
8,968.00
Others: Payables
46,620.00
2,930.00
41,770.00
45,000.00
45,000.00
59,630.00
59,630.00
9,490.00
20,237.00
3,44,305.00
8,968.00
2,20,972.00
10,54,128.37
5,000.00
30,637.00
Anthony Machado
Sheila Agnani
Refundable to Members
6,000.00
52,261.00
900.00
400.00
6,814.00
75,000.00
PROVISIONS
Paver Blocks collection
250.00
Outstanding Expenses
58,511.00
4,40,000.00
4,000.00
2,71,200.00
1,72,800.00
2,30,981.71
4,25,946.05
15,91,616.71
17,11,385.42
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PARTICULARS
Rs
CTD Bonds for F&G Buildings
Sinking Fund Certificates Flats
in New Buildings Additional
Rooms in F Building Additional
Rooms in G Building Lifts in
Buildings 9 & 10
Cost of Garages
Ground Fencing
Ring Well
Compound Wall & Gates
181,45,612.00 TOTAL
As at
31st March2013
Rs
6,33,720.00
14,29,330.00
125,64,630.00
2,49,348.00
3,27,658.00
3,22,000.00
1,35,423.00
20,12,027.00
3,19,486.00
1,51,990.00
181,45,612.00
Chapter 4
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4.1 conclusion
I conclude based upon the data in my project I have learned what is cooperative
housing society and there are many advantages and disadvantages in cooperative housing
society. Though the main aim of these cooperative housing society is not to earn profit but
still they are interested in knowing whether their current income is more than the current
expenses or not. They are also keen in knowing the financial position of their concern. Cooperative Societies are not charitable societies. They carry on Economic Activities. The profit
is not the motive but the proper accounts need to be maintained and presented before the
members for their approval in the Annual General Body meeting. While doing this project I
learn how to register the cooperative housing society, step involve while registering a society.
While studying the auditing report of two year 2010 and 2011 and making project on a Hari
leela cooperative housing society was also a knowledgeable experience for me.
4.2 Bibliography
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BOOKS
Author name
CA (Dr.)Varsha Ainapure
Book Name
MANAN PAKSHAN
WEBSITES
www.google.com
www.wikipedia.com
www.scribd.com
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