PROJECT REPORT

The Comparattive Study of Financial Statement With

reference to Shri Bhairavnath Nagari Sahakari
Pathsanstha Ltd Landewadi
A PROJECT WORK SUBMITTED T O
SAVITRIBAI PHULE PUNE UNIVERRSITY
THE IN FOR THE DEGREE MASTER
COMMERCE.

BY
Dhobale Snehal Sopan
M.Com

Under The Guidance Of

Prof. Dr.Devadker.D. T

Department Of Commerce
Annasaheb Awate Arts, Commerce
Hutatma Babu Gehu Science College, Manchar
Tal- Ambegaon, Dist-Pune-410504

1
 March 2017

CERTIFICATE

This is to certify that project report on The analysis

Study of Financial Statement With reference to Shri
Bhairavnath Nagari Sahakari Pathsanstha Ltd Landewadi
Which has been submitted to university of Pune by Miss

Dhobale Snehal Sopan for the M.com Second has been under

My Supervision. Such material has been obtained from other

sources has been acknowledged in the project.

For A. A. College, Manchar.

Date:- Principal

Place:-Manchar Dr. Gaikwad. P.N

2
 GUIDE CERTIFICATE

Certified the project work titled The Analysis Study

of Financial Statement With reference to Shri Bhairavnath

Nagari Sahakari Pathsanstha Ltd Landewadi ,Submitted

by Dhobale Snehal Sopan out by the candidate, under my

supervision, Such material has been obtained from other

sources has been acknowledged in the project.

Date:- Research Guide

Place:-Manchar Prof. Devakade.D. T

3
 DECLARATION BY STUDENT

I hereby declare that this project report on The

analysis Study of Financial Statement With reference to

Shri Bhairavnath Nagari Sahakari Pathsanstha Ltd

Landewadi Written submitted by me under the guidance of

Prof. Dr. Dewadkar is my original work.

A. A College, Manchar.

Date: Signature

Place: Manchar Dhobale Snehal Sopan

A.A. College, Manchar

4
 ACKNOWLEDGEMENT

The project on the subject The analysis Study

of Financial Statement With reference to Shri Bhairavnath
Nagari Sahakari Pathsanstha Ltd Landewadi.

It has been great opportunity & pleasure for

expressing my sincere thanks to all those who have helped me
to make this project report successfully It has privilege for me
to express my sincere thought and profound gratitude Dr. P. N.
Gaikwad, Principal, A. A. College, Manchar. I am heartily
thankful to my guide Prof. Dr. Devadkar.D.T who helped for
me the management of the Shri Bhairavna Nagari
Sahakari Pathsanstha Ltd Landewadi I Specially I
am thankful to the Chairman Mr. Shivajirao Adhalrao
Patil manager and director body of the Shri Bhairavnath
Nagari Sahakari Pathsanstha Ltd Landewadi I am
expressing my heartily thanks to the above staff member of
Society.I am grateful to my father & my friends who have
helped me directly & indirectly for complementing this
project report.

5
 Dhobale Snehal Sopan

(M.com 2nd )

CONTENTS

Chapter No Title Page no

1) Introduction
1.1- Meaning &definition
1.2- Objects of study
1.3- Chapter Scheme
1.4- Methodology

2) History & Development of

Pathsanstha.

3) History & Development of Shri

Bhairavnath Nagari Sahakari
Pathsanstha .
3.1- History
3.2- Profile of Bhairavnath Pathsanstha
4) Financial analysis

5) Finding & Suggestions & Hypothesis ,

Conclusion

6
 CHAPTER No: - 1
Introduction
Meaning& definition
Objective of Study.
Chapter Scheme
Methodology

7
 Chapter No.1
I. Introduction
I am Dhobale Snehal Sopan M.com part 2 in
Annasaheb Awate college of Manchar have completed the
project on analytical study of financial statement of Shree
Bhairavnath Nagari Sahakari Pathsanstha Ltd .
I am studying in Manchar, situated on the Pune- Nasik
highway in Ambegoan taluka. Manchar is the biggest market
place in surrounding area & has good business potential.
I have selected the topic for my study due to the
information easily available to me. The working of the credit
society in local area is progressive. To work on the subjects of
analytical study of financial statement. I have selected in
Shree Bhairavnath Nagari Sahakari Pathsanstha Ltd in
Ambegaon district .

8
II. Objective Of Study
The research Study consists of following objectives.
1. To study growth and futures prospects of the credit society
2. To study growth in membership
3. To study the growth of capital and reserve of credit society
4. To study the income position of the credit society
5. To study the functions and services provided by the credit
society
6. To know the working area of the credit society.

III. Methodology:-
The researcher has to test the following
statement of hypothesis threw the study. The analytical study
is satisfactory during the study period.

Hypothesis
The study is based on primary and secondary data

a) Primary data-
Following techniques are used for the collection of primary
data
Primary data need Interview of member, chairman & director,
field work.

9
b) Secondary data
Secondary data are collected by using
documentary sources and in depth information of the credit
society such as annual reports, public material, books, credit
society, magazines, articles, and references for college library
etc.
The collected data analyzed and interpreted by using
following statistical method.
1. Tabulation
2. Classification
3. Simple average
4. Percentage
5. Graphs
IV. Limitation of study
The Study has following information.
It is based on historical data.

It considers only monetary aspect. In absence of human

resources accounting the same has been excluded from the
review.

10
 Financial statements are primarily based on cost
concept. Hence, it cannot give the current position.

In the absence of availability of information of another

company in the fertilizer, the comparison between two
companies cannot be made. The various ratios of the
company.

11
 CHAPTER No: - 2
History & Development of
Pathsanstha
Meaning
Pathsanstha Credit Society.
Pathsanstha movement
Pathsanstha Development
Pathsanstha Development in
Maharashtra
Pathsanstha Development
movement in Maharashtra

12
 Chapter No-2
History & Development of Pathsanstha.
I. Meaning
Pathsanstha means working together, The
principles of Co-operation are as old as human society.
Unconsciously, the principles have always penetrated the life
of human race. "Nature is a great friend of Co-operation",
says H. G. Wells. Modern biologists believe that the
Pathsanstha forces are
biologically more important and vital.
Montague says that, "Science points out the way to survival
and happiness for all mankind through love and co-operation".
According to F. R. Bowen, "Pathsanstha is the universal
instrument of creation". Here under, we have to discuss the
principles of co-operation in detail.

II. Definition :-
Almost every writer has tried to define this term in
his own way. No two definitions are identical and no single
definition has so far succeeded in including within single
formula of all ingredients of Pathsanstha.
"Pathsanstha as a voluntary concert with equitable
participation and control among all concerned in any
enterprise". - Holyoake.
According to C. R. Fay, "A Pathsanstha is 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 duties of
membership can share its rewards, in proportion to the degree
in which they make use of their association".

13
 Sir Horace Phmkeh said, "Pathsanstha is self-
help made effective by organisation. It is better forming,
better business and better living".
Dr. Philip. R. has given the following definition on Co-
operation.
"The Pathsanstha Association is an association of
firms or households for business purposes, an economic
institution through which an economic activity is conducted in
the pursuit of economic objectives".
Mr. Calvert. H. Defined Pathsanstha, as a form of
organisation, wherein persons voluntarily associate together as
human beings on a basis of equality for the promotion of the
economic interests of themselves".
Prof. Paul Lambert Says, "Pathsanstha society is an
enterprise formed and directed by an association of users,
applying itself the rules of democracy and directly intended to
serve both its own members and the community as a whole".

III. Characteristic Features Of Pathsanstha

a) Association of Persons
It is not an impersonal grouping of capital like a joint stock
company.
"In Economic Co-operatives, it is men that counts, not
money". - Poady'.
So, it is an association of persons.
c) An undertaking:
It is not a charitable institution. It is not only an association
of persons., but also an undertaking.

d) A Voluntary Association:
It is a Voluntary Organisation. No person should be compelled
to be or go out of the society. It depends upon their
14
wish and will. 'Any form of compulsion or coercion is
incompatible with the concept of Co-operation'.
d) Democratic Organisation:
'One man; one vote' is the voting policy followed in
co-operatives. So, a person who has more number of shares
cannot dominate the society. So, we can say it is a democratic
form of organisation.
e) Service, not profit:
A Co-operative Organisation is motivated by a spirit of
service; its whole mechanism is geared up towards the
provision of most economical services. So, the keynote of a
Co-operative enterprise is service; not profit.
f) Equality:
This is the next feature of Co-operation. As was said by
Mr. Calvert
Voluntarily associate together as human being, on a
basis of equality...", all are equals here. According to Edgard
Milhand, "There, can be no cooperation, unless it is between
equals". Irrespective of possible differences of race, creed,
colour, caste, sex, economic status, social status or
subscription of capital, all are possessing equal rights and
duties.
g) Proportionality or Equity:
The distinctive feature of Pathsanstha is social
economy. It is a method of contributing to the social product.
The surplus is distributed, not according to shareholdings, but
according to the proportion of business operation, a member
has been effective within the society.
h) Socio-economic Movement:
It is a socio-economic movement. It is desirous to
bring social and economic changes peacefully. It is based on
self-help and stands for the moral and honesty.

15
IV. History of Pathsanstha in India
The Rochdale Pioneers:

Pathsanstha started out as small grass roots

organizations in Western Europe, North America and Japan in
the middle of the last century, however, the it is the Rochdale
Pioneers that is regarded as the prototype of the modern co-
operative society and the founders of the Co-operative
Movement.
In 1844 a group of 28 artisans working in the
cotton mills in the town of Rochdale, in the north of England
established the first modern co-operative business, the
Rochdale Equitable Pioneers Society (photo). The weavers
faced miserable working conditions and low wages, and they
could not afford the high prices of food and household goods.
They decided that by pooling their scarce resources and
working together they could access basic goods at a lower
price. Initially, there were only four items for sale: flour,
oatmeal, sugar and butter. The Pioneers decided it was time
shoppers were treated with honesty, openness and respect, that
they should be able to share in the profits that their custom
contributed to and that they should have a democratic

V. The Pathsanstha Movement in India

a. Preamble:
The history of Pathsanstha in India is more than a
hundred years old. The canvas of events is far too vast to give
it the space it deserves in a Report of this nature. The
following is only a brief attempt to recapture the major events
that led to the cooperatives as we see them today.

16
b) Background:
Even before formal cooperative structures came
into being through the passing of a law, the practice of the
concept of cooperation and cooperative activities were
prevalent in several parts of India. Village communities
collectively creating permanent assets like village tanks or
village forests called Devarai was fairly common. Similarly,
instances of pooling of resources by groups, like food grains
after harvest to lend to needy members of the group before the
next harvest, or collecting small contributions in cash at
regular intervals to lend to members of the group viz., Chit
Funds, in the erstwhile Madras Presidency, Kuries in
Travancore, Bhishies in Kolhapur etc. were to be found.
The Phads of Kolhapur where farmers impounded water by
putting up bunds and agreed to ensure equitable distribution
of water, as well as harvesting and transporting of produce of
members to the market, and the Lanas which were yearly
partnerships of peasants to cultivate jointly, and distribute the
harvested produce in proportion to the labor and bullock
power contributed by their partners, were similar instances of
cooperation.
The proposal for agricultural banks was first mooted in
1858 and again in 1881 by Mr. William Wedderburn the
District Judge of Ahmednagar, in consultation with Justice
M.G. Ranade, but was not accepted. In March 1892, Mr.
Frederick Nicholson was placed by the Governor of Madras
Presidency (for inquiring into the possibility) of introducing in
this Presidency, a system of agricultural or other land banks
and submitted his report in two volumes in 1895 and 1897.

17
 In 1901 the Famine Commission recommended
the establishment of Rural Agricultural Banks through the
establishment of Mutual Credit Associations, and such steps
as were taken by the Government of North Western provinces
and Oudh. The underlying idea of a number of persons
combining together was the voluntary creation of a new and
valuable security. A strong association competent to offer
guarantees and advantages of lending to groups instead of
individuals were major advantages. The Commission also
suggested the principles underlying Agricultural Banks.
c) Pathsanstha Societies Act, 1904 - The First
Incorporation:
Taking cognizance of these developments and to
provide a legal basis for Pathsanstha, the Edward Law
Committee with Mr. Nicholson as one of the members was
appointed by the Government to examine and recommend a
course of action. The Cooperative Societies Bill, based on the
recommendations of this Committee, was enacted on 25th
March, 1904. As its name suggests, the Cooperative Credit
Societies Act was restricted to credit cooperatives. By 1911,
there were 5,300 societies in existence with a membership of
over 3 lakes. The first few cooperative societies registered in
India under the 1904 Act in the first 5-6 years are as follows:
Rajahauli Village Bank, Jorhat, Jorhat Cooperative Town
Bank and Charigaon Village Bank, Jorhat, Assam (1904),
Tirur Primary Agricultural Cooperative Bank Ltd., Tamil
Nadu (1904), Orissa (1905), Government of India, Sectt.
Cooperative Thrift & Credit Society (1905), Premier Urban
Credit Society of Calcutta, West Bengal (1905), Chittoor
Cooperative Town Bank, Andhra Pradesh (1907), Rohika
Union of Cooperative Credit Societies Ltd., Bihar (1909).
Under this Act, several non credit initiatives also came up
18
such as the Triplicane society in Madras which ran a
consumer store, weaver credit cooperatives in Dharwar and
Hubli, which gave credit in the form of yarn etc. However,
these were registered as Urban Credit Societies.
The 1904 Act provided for constitution of societies,
eligibility for membership, registration, liabilities on
members, disposal of profits, shares and interests of members,
privileges of societies, claims against members, audit,
inspection and enquiry, dissolution, exemption from taxation
and rule making power. All other operational and managerial
issues were left to the local governments namely to formulate
suitable rules and model bye-laws of the cooperative societies.
The institution of the Registrar, visualized as a special official
mechanism to be manned by officers with special training and
appropriate attitudinal traits to prompt and catalyze
cooperative development was the result of the Cooperative
Societies Act of 1904.
d) Pathsanstha Societies Act, 1912:
With the developments in terms of growth in the
number of cooperatives, far exceeding anticipation, the
Cooperative Societies Act of 1912 became a necessity and
cooperatives could be organized under this Act for providing
non-credit services to their members. The Act also provided
for Federations of cooperatives.
With this enactment, in the credit sector, urban
cooperative banks converted themselves into Central
Cooperative Banks with primary cooperatives and individuals
as their members. Similarly, non-credit activities were also
cooperatively organized such as purchase and sales unions,
marketing societies, and in the non agricultural sector,
cooperatives of hand loom weavers and other artisans.
19
e) Maclagen Committee on Cooperation (1914):
The Banking Crisis and the First World War
both affected the growth of cooperatives. Although member
deposits in cooperatives increased sharply, the war affected
the export and prices of cash crops adversely, resulting in
increased over-dues of loans of primary agricultural societies.
To take stock of the situation, in October, 1914 a Committee
on Cooperation under Sir Edward Maclagen was appointed by
the Government, in October 1914, to study the state of, and
make recommendations for the future, of cooperatives. The
Committees recommendations, which are detailed in
Annexure-3, are basically related to credit cooperatives. It
recommended building up a strong three-tier structure in
every province with primaries at the base, the Central
Cooperative Banks at the middle tier and the Provincial
Cooperative Bank at the apex, basically to provide short-term
and medium-term finance. Considerable emphasis was laid on
ensuring the cooperative character of these institutions and
training and member education, including training of the
Registrar and his staff.
f) After the 1912 Act :
The first Pathsanstha, the Madras Cooperative
Union in 1914, the Bombay Central Cooperative Institute in
1918 and similar institutions in Bengal, Bihar, Orissa, Punjab
etc. came up. Other than consumer cooperatives and weavers
cooperatives, other non-agricultural credit cooperatives
generally performed well and grew in strength and operations
during this period.

20
g) The agricultural credit scenario :
The agricultural credit scenario was a matter of
concern and various committees looked into the problems of
cooperative banks in various provinces. The Royal
Commission on Agriculture in 1928 also reviewed the
cooperative sector and among others recommended the setting
up of land mortgage banks.
h) Agricultural and non agricultural:
In both agricultural and non agricultural non-credit
sectors, societies were organized, but most faced difficulties in
operation as a result of opposition by private marketing
agencies and also the inexperience of their office bearers. This
focused attention on strengthening of cooperative institutes
and unions for education and training. A prominent
development of this time was the setting up of the All India
Association of Cooperative Institutes in 1929.
i) The period between 1939 -1945 :
The period between 1939 -1945 provided a
further stimulus to the growth of the Urban Cooperative
Credit structure. Many societies had started banking functions
and had grown in size and operations over a period of time,
with substantial diversification of activities.
j) Multi-Unit Pathsanstha Act, 1942 :
With the emergence of Pathsanstha having a
membership from more than one state such as the Central
Government sponsored salary earners credit societies, a need
was felt for an enabling cooperative law for such multi-unit or

21
multi-state cooperatives. Accordingly, the Multi-Unit
Cooperative Societies Act was passed in 1942, which
delegated the power of the Central Registrar of Cooperatives
to the State Registrars for all practical purposes.
k) Pathsanstha Planning Committee (1945):
The Pathsanstha Planning Committee under the
chairmanship of Shri R.G. Saraiya was set up in 1945. The
Committee found Pathsanstha to be the most suitable medium
for democratization of economic planning and examined each
area of economic development.
l) Pre-Independence Development :
In 1946, inspired by Sardar Vallabh Bhai Patel
and led by Shri Morarji Desai and Shri Tribhuvan Das Patel,
the milk producers of Khera District of Gujarat went on a
fifteen day strike. Their refusal to supply milk forced the
Bombay Government to withdraw its order granting
monopoly procurement rights to Polson, a private dairy.
History was made when two Primary Village Milk Producer
Societies were registered in October 1946. Soon after on 14th
December 1946, the Khera District Cooperative Milk
Producers Milk Union known as Amul was registered.
The Registrars Conference in 1947 recommended
that the Provincial Cooperative Banks be re-organized to give
greater assistance to primary societies through Central Banks.
For the first time an effective linking of credit with marketing,
and providing assistance by way of liberal loans and subsidies
for establishment of a large number of godowns and
processing plants was considered.

22
 It would be appropriate to mention here some
developments in Bombay vis--vis Pathsanstha, which had an
impact on the cooperative sector. Shri Vaikunth Bhai Mehta
took over as Minister, In-charge of Cooperation in the
Bombay Government after which the cooperative movement
in the province received a boost. A Committee on Cooperative
Education and Training under the chairmanship of Sir
Janardan Madan, made recommendations for cooperative
education programmes and the setting up of an Education
Fund. The Agricultural Credit Organization Committee, with
Sir Manilal Nanavati as Chairman recommended State
assistance in agricultural finance and conversion of all credit
cooperatives into multi-purpose cooperatives. It also
recommended a three-tier Pathsanstha banking system, and
various subsidies etc.
m) Developments in the Post-Independence Era :
After India attained Independence in 1947,
Pathsanstha development received a boost, with cooperatives
being given a vital role in the various plans formulated by the
Planning Commission.
The First Five Year Plan (1951-56), outlined in
detail the vision of the cooperative movement in India and the
rationale for emphasizing cooperatives and panchayats as
preferred organizations for economic and political
development. The Plan emphasized the adoption of the
cooperative method of organization to cover all aspects of
community development. It provided for setting up of urban
cooperative banks, industrial Pathsanstha of workers,
consumer Pathsanstha, housing Pathsanstha, diffusion of
knowledge through training and education and

23
recommended that every government department follow the
policy of building up cooperatives.

n) Some National Institutions which came into existence in

the 1960s :
The Agricultural Refinance Corporation was
set up in 1962 by the Government of India to provide long-
term loans to cooperatives, through Central Land Mortgage
Banks.
In 1963, the National Cooperative Development Corporation
(NCDC) was established as a statutory corporation by an Act
of Parliament. The establishment of the NCDC gave a great
boost to the growth of cooperative marketing and processing
societies.
While on a visit to Anand in October 1964, impressed
by the socio-economic transformation brought about by milk
cooperatives, Shri Lal Bahadur Shastri, the then Prime
Minister of India, spoke of the desirability of setting up a
national level organization, the National Dairy Development
Board (NDDB), to replicate the Anand pattern of cooperatives
in milk throughout the country.
Several other significant organizational
developments also took place during this period such as the
setting up of various National Cooperative Federations and re-
organization of the National Cooperative Union of India
(NCUI). In 1967, the Vaikunth Mehta National Institute of
Cooperative Management was set up in Pune. Growth of
consumer cooperatives was also an important development of
this period. Simultaneously, the growth of Land Development

24
Banks also accelerated and rural electric cooperatives and
programmes for dairy, poultry, fishery and labour cooperatives
were set up.

o) NABARD Act, 1981:

The National Bank for Agriculture and Rural
Development (NABARD) Act was passed in 1981 and
NABARD was set up to provide re-finance support to
Cooperative Banks and to supplement the resources of
Commercial Banks and Regional Rural Banks to enhance
credit flow to the agriculture and rural sector.
p) Multi-State Pathsanstha Societies Act, 1984 :
With the objective of introducing a comprehensive
central legislation to facilitate the organization and
functioning of genuine multi-state societies and to bring
uniformity in their administration and management, the
MSCS Act of 1984 was enacted. The earlier Multi-Unit
Cooperative Societies Act of 1942 was repealed.
q) Model Pathsanstha Act, 1990 :
In 1990, an Expert Committee, under the
chairmanship of Choudhary Vijay Patil , was appointed by the
Planning Commission to make a rapid review of the broad
status of the cooperative movement, suggest future directions
and finalize a Model Cooperatives Act. The Committee
submitted its report in 1991. Since Pathsanstha is a State
subject and each State has its own Pathsanstha legislation
covering whose membership is confined to the State, the
report of the Committee, along with a draft Model Pathsanstha

25
Law, was circulated to all State Governments for their
consideration and adoption at State level.

r) The opening up of the economy in 1990:

The opening up of the economy in 1990, and
the liberalized economic policies followed by the government
since then, led to increasing pressures for various
governments, state and central, to bring about changes that
would provide cooperatives a level playing field to compete
with the private sector. The Eighth Five Year Plan (1992-
1997) laid emphasis on building up the cooperative movement
as a self-managed, self-regulated and self-reliant institutional
set-up, by giving it more autonomy and democratizing the
movement. It also spoke of enhancing the capability of
cooperatives for improving economic activity and creating
employment opportunities for small farmers, labourers,
artisans, scheduled castes, scheduled tribes and women and
emphasized development and training of cooperative
functionaries in professional management.
s) Parallel Pathsantha Legislation :
From the Ninth Plan (1997-2002) onwards, there
has been no specific mention about cooperatives as a part of
the Plan. Since Pathsanstha is a State subject and recognizing
the difficulties in having the existing State Cooperative Acts
amended on the lines of the Model Cooperatives Act, a
section of co operators and civil society initiated action to put
in place Parallel Cooperative Legislation for self-reliant
cooperatives. Self- reliant cooperatives are generally defined

26
as those which have not received any assistance from the
Government in the form of equity contribution, loans and
guarantees. These Acts are largely based on the
recommendations of the Choudhary Brahm Perkash
Committee. Nine States namely AP (1995), MP (1999), Bihar
(1996), J&K (1999), Orissa (2001), Karnataka (1997),
Jharkhand (1996)), Chhattisgarh (1999) and Uttaranchal
(2003), have so far enacted Parallel Cooperative Acts which
are enabling and ensure autonomous and democratic
functioning of cooperatives.
t) Multi-State Pathsantha Act, 2002 :
The Multi-State Cooperative Societies (MSCS)
Act, enacted in 1984, was modified in 2002, in keeping with
the spirit of the Model Cooperatives Act. Unlike the State
Laws, which remained as a parallel legislation to co-exist with
the earlier laws, the MSCS Act, 2002 replaced the earlier Act
of 1984.
u) National Pathsantha Policy (2002):
In 2002, the Government of India enunciated a
National Pathsanstha Policy. The objective of the Policy is to
facilitate an all round development of cooperatives in the
country. The policy promises to provide cooperatives with the
necessary support, encouragement and assistance, to ensure
their functioning as autonomous, self-reliant and
democratically managed institutions, accountable to their
members, and making a significant contribution to the
national economy.
Based on the recommendations made at a
Conference of State Ministers for Cooperation, the
Government of India in 2002 constituted a Ministerial Task
27
Force to formulate a plan of action for implementation of
National Cooperative Policy. The Task Force suggested that a
single law instead of parallel laws should be introduced in the
States. It also recommended, among others, that in order to
depoliticize cooperatives, Members of Parliament or Members
of Legislative Assemblies should not be allowed to hold office
of any cooperative society.
v) The Companies Amendment Act, 2002 :
A Committee under the chairmanship of Dr.
Y. K. Alagh recommended the amendment of the Companies
Act, 1956. On the basis of the recommendations of the
Committee, the Producer Companies Bill was introduced in
the Parliament and became law on 6th February, 2003 as Part
IXA - Producer Companies in the Companies Act, 1956.
Based on the cooperative principles of mutual assistance, it
provides an alternative to the institutional form that is
presently available to cooperative enterprises.
w) NCDC Amendment Act, 2002 :
Recognizing the need to improve its scope of
lending and to bring about changes in its funding, the NCDC
Act was amended in 2002, which has enabled it to cover
notified services, livestock and industrial activities and more
importantly to directly fund cooperatives against suitable
security.

28
 CHAPTER No: - 3
History & Development of Shri
Bhairavnath Nagari Sahakari
Pathsanstha Ltd

History of Pathsanstha
Profile of Pathsanstha Society.

29
 Chapter No-3
History & Development of Shri Bhairavnath Nagari
Sahakari Pathsanstha Ltd

I. History Pathsanstha
Shri Bhairavnath Nagari Sahakari Pathsanstha
limited started in economic year1989-90. Pathsanstha Society
limited plays an important role in economic development of
pune district. This society is helpful to people for completion
of their basis, agriculture and business needs.
Pathsanstha Society limited is running successfully by the
guidance &co-operation of people and staff member.
Before 25 years Pathsanstha Society were founded by the
people and for the people.
The price of share that time was 100 Rs .
Pathsanstha Society get totally 21000 Rs share
capital. After that peoples were took a Registered certificate
at Manchar, from Co operate office.
Society permitted to open account in Pune District.
Finally on 15 june 1990, Special Gramsabha was
Organised to elect the Staff of Society. The first Chair person
was Gawade Ramshet Sadashiv. Since own words Shri
Bhairavnath Nagari Sahakari Pathsanstha working
Successfully and Celebrated 25 year completion in 2013.

30
 Profile of bank:-
Name Of Bank Shri Bhiravnath Nagari Sahakari
Pathsanstha Ltd
Head Office address Manchar
Tal- Ambegaon, Dist Pune,410504
Date of Registration 1989
NO. of Registration PNA/AGN/RSR/(CR)581/89-90

License
Jurisdiction Ghodegaon, Pune
Number of Director
Chairman of Bank Shivajiirao Adhalarao Patil.
Secretary Ramshet Gawade
No of branches Head Office +All Gaon Branch
Membership Regular-1227
Nominal-210
Paid up share capital 1,29,98,450 Rs

31
Deposits 250597753 Rs

Advances --
Total Advances --
Borrowing --
Investment 121612901 Rs
Overdue Percentage 2.57%
Audit Classification A
Profit of the Year 6009343.50 Rs
Total Staff 35
Working capital: 347366177.50 Rs

32
II. Rate of Interest on Capital:
Term Rate of Interest

saving 4%

46 days to 1year 8%

Above 1year to 3year 10.5

Above 3 year 11.5

III. Rate of Interest of loan disabused

Sr. No. Type of Loan Rate of Interest
1 Gold Loan 13%
2 Vehicle loan 14%
3 Loan against 15%
guaranty
4 Home loans 14%
5 Personal Loans 15%

33
 CHAPTER No: - 4
Financial Analysis of Shree
Bhairavnath Nagari
Sahakari Pathsanstha Ltd
Nature of Financial
Statement.
Importance of The
Study

34
 Chapter No-4
Financial Analysis of Shree Bhairavnath
Sahakari Pathsanstha
Statement:-
Financial analysis are prepared for the purpose of a
presenting a periodical review or report.
On the progress by management & deal with the status of
the investment in the business.
Results achieved during the period under review.
The Financial Statements are generally prepared for the
measurement of financial position of a particular Society for a
particular period of time. These statements are
(i) Profit and loss account
(ii) Balance sheet.

I. Nature of Financial Statement:-

The Financial Statements are generally
prepared for the measurement of financial position of a
particular company for a particular period of time. The
financial statements i.e. (i) Profit and loss account and (ii)
Balance sheet provide useful information regarding financial
situation of company. The information has its own value, but
if anybody wants to have better judgment of the concern, he
has to analyse them. This paper provides the guidelines about
analysis of profitability

35
 Ratio of Shree Bhairavnath Pathsanstha Ltd. located
at Landewadi in Pune district.

II. Importance of The Study

The study is helpful to different types of users like:
a) Management:-
This study helps to assess its pass performance and
to plan about its future programmes. It also helps to know up
to what extent the funds were efficiently utilized or
misappropriated.

b) Creditors:
This study is very useful to the creditors to judge
liquidity position and financial soundness of the company.

c) Shareholders:
The shareholders can know the prospects of the
business and to what extent their interest will be affected by
the result of the business operation, the profitability and
financial condition and as to the future earnings and the return
on their capital.

d) Scope Of The Study

The study covers analysis of financial statements
of limited for the period 2001-2002 to 2016-2017. The present
analysis is carried up to financial year 2015-16.It can be
extended to future period also. With the help of statistical
analysis, the forecasting of subsequent years can also be made
for particular item such as sales, inventory, profit, etc. The
statistical analysis can also be applied to every ratio and by
there upon more comprehensive results can be obtained. The
statistical analysis can also be applied to other similar
36
companies as well as the industry as a whole in order to know
the prevailing situation in the whole industry.

III. Limitations Of The Study

It is based on historical data.

It considers only monetary aspect. In absence of human

resources accounting the same has been excluded from the
review.

Financial statements are primarily based on cost concept.

Hence, it cannot give the current position.

In the absence of availability of information of another

company in the fertilizer, the comparison between two
companies can not be made. The various ratios of the
company

Graphical analysis:
37
 Graph shows the member of Shree Bhairavnath
Pathsanstha.
Table No - 4.1
Sr. No. Year Member Increase
1 2014-2015 1050 -
2 2015-2016 1130 80
3 2016-2017 1227 97

The table number 4.1 shows increasing trend in member

during the study period. The member in the year 2014-2015
was 1050 members were as it increased by 80 in the year
2015-2016. The number be comes in year 2014-2015 was
1130 & the every year member increase of this society & the
last year 2016-2017 had increased 1227
Growing trend in member during the period under the review
of credit society as follows.

Member
1250 1227
1200
1150 1130
Member
1100
1050
1050
1000
950
2014-2015 2015-2016 2016-2017

38
 Graph shows the Share capital of Shree Bhairavnath
Pathsanstha Ltd.

Table No - 4.2
Sr. No. Year Share capital(Rs in Increase
lakhs) /decrease
1 2014-2015 100.00000 ----

2 2015-2016 109.08050 99.08050

3 2016-2017 129.98450 20.00400

The table number 4.2 shows increasing trend in

share capital during the study period. The share capital in the
year 2014-2015 was 100.00lakhs Rs. Share capital is
increased by 99.08050lakhs Rs in the year 2015-2016 The
number be comes in year 2016-2017 was 109.08050lakhs Rs
& the every year capital is increase of this society & the last
year 2016-2017 had increased up to 129.9845lakhs Rs
Growing trend in share capital during the period under
the review of credit society as follows.

39
 Share Capital
140 129.98
120 109.08
100
100

80 Share Capital

60

40

20

0
2014-2015 2015-2016 2016-2017

Graph shows the deposit of Shree Bhairavnath Sahakri

Pathasantha Ltd.
Table No - 4.3
Sr. No. Year Deposit (Rs in lakh) Increase /decrease

1 2014-2015 1575.98496 ---

2 2015-2016 1940.47238 364.48742

3 2016-2017 2505.97753 565.50515

The table number 4.3 shows increasing trend in deposit

during the study period. The deposit in the year 2014-2015
was 1575.98496lakhs Rs. Deposits is increased by
364.48742lakhs Rs in the year 2015-2016. The number be
comes in year 2014-2015 was 1940.47238lakhs Rs & the
every year deposit increase of this society & the last year
2016-2017 had increased 2505.97753lakhs Rs

40
 Growing trend in deposit during the period under the
review of credit society as follows.
3000

2505.98
2500

1940.47
2000
1575.98
1500
Deposit

1000

500

0
2014-2015 2015-2016 2016-2017

Graph shows the Profit of Shree Bhairvanth Pathsanstha.

Table No - 4.4
Sr. No. Year Profit Increase /decrease

1 2014-2015 39.06681 -

2 2015-2016 53.19412 14.12731

3 2016-2017 60.09343 6.89931

The table number 4.4 shows increasing trend in Profit
during the study period. The Profit in the year 2014-2015 was
39.06681lakh Rs. Profit is increased by 14.12731lakh Rs in
the year 2015-2016. The number be comes in year 2013-2014
was 53.19412lakh Rs & the every year Profit increase of this

41
society & the last year 2016-2017 had increased up to
60.09lakhs Rs.
Growing trend in Profit during the period under the
review of credit society as follows.

Profit
70
60
60 53
50
39 Profit
40

30

20

10

0
2014-2015 2015-2016 2016-2017

Graph shows the investment of Shree Bhairavnath

Pathsanstha.
Table No - 4.5
Sr. No. Year Investment(Rs lakhs) Increase /decrease

1 2014-2015 623.52973 ----

2 2015-2016 832.92825 209.39852

3 2016-2017 1216.12901 383.20076

42
 The table number 4.5 shows increasing trend in
investment during the study period. The investment in the
year 2014-2015 was 623.52973lakh Rs. Investment were as it
increased by 209.39852 in the year 2015-2016. The number
be comes in year 2013-2014 was 832.92825 & the every year
investment increase of this society & the last year 2016-2017
had increased up to 1216.12901lakh Rs. Growing trend in
investment during the period under the review of credit
society as follows.

Investment
1400
1,216
1200

1000
833
800 Investment
624
600

400

200

0
2014-2015 2015-2016 2016-2017

Table shows the Loans of Shree Bhairavnath Pathsanstha .

Table No 4.6
Sr. No. Year Loans (Rs lakhs) Increase /decrease

1 2014-2015 1304.36148 -

2 2015-2016 1579.52,217 275.16069

3 2016-2017 2086.28824 506.76607

43
 The table number 4.6 shows increasing trend in
investment during the study period. The investment in the
year 2014-2015 was 623.52973 lakh Rs, investment were as it
increased by 209.39852 in the year 2014-2015 The number
be comes in year 2015-2016 was 832.92825 & the every year
investment increase of this society & the last year 2016-
2017had increased up to 1216.12901lakh Rs.
Growing trend in investment during the period under
the review of credit society as follows.

loans
2500
2,086
2000
1,580
1500 1,304 loans

1000

500

0
2014-2015 2015-2016 2016-2017

raph shows the Working capital of Bhairavnath

Pathsanstha .

Table No- 4.7

Sr. No. Year Working capital ( lakh Rs) Increase /decrease

1 2014-2015 2052.19640 -

44
 2 2015-2016 2590.80500 538.60860

3 2016-2017 3473.66177 882.85677

The table number 4. 7 shows increasing trend in

investment during the study period. The investment in the
year 2014-2015 was 623.52973 lakh Rs, investment were as it
increased by 209.39852 in the year 2015-2016.The number be
comes in year 2013-2014 was 832.92825 & the every year
investment increase of this society & the last year 2016-2017
had increased up to 1216.12901lakh Rs.
Growing trend in investment during the period under
the review of credit society as follows.

Working capital
4000
3,474
3500
3000 2,591
2500 Working capital
2,052
2000
1500
1000
500
0
2014-2015 CHAPTER
2015-2016 No:
2016-2017- 5

Finding and
suggestion

45
46
 Chapter No-5
Finding and suggestion
I. Finding
a) Members
In the year 2014-2015 the members were 1130 & in the year
2016-2017 members were 1227 from that the members position
shown increasing trend from established.

b) Share Capital:
Share capital position shows increasing trend from 1989-
1990 the total share capital in the year 2014-2015was
RS109.08050lakh & it increased to Rs 129.9845lakhs in 2016-2017
from that I find the share capital position shows increasing trend.

c) Reserve and Surplus:

Reserve and Surplus position shows increasing trend from
1989-1990 the total Reserve and Surplus in the year 2015-2016 was
Rs 41478795 & it increased to Rs 46220306 in the 2016-2017 from
that I find the Reserve and Surplus position shows increasing trend.

d) Owned Fund:
Owned Fund position shows increasing trend from 1989-
1990 the total Owned Fund in the year 2014-2015was Rs
15.00000lakhs & it increased to Rs 42.00000lakhs in the 2016-2017
from that I find the Owned Fund position shows increasing trend.

e) Profit:
Profit position shows increasing trend from 1989-1990 the
total profit in the year 2014-2015 was Rs 53.19412lakhs & it

47
increased to Rs 60.03891lakhs in the 2016-2017 from that I find the
profit position shows increasing trend.

f) Investment
Investment position shows increasing trend from 1989-
1990 the total Investment in the year 2014-2015 was Rs
832.92825lakhs & it increased to Rs 1216.12901lakhs in the 2016-
2017 from that I find the Investment position shows increasing trend.

g) Loans & Advances

Loans & Advances position shows increasing trend from
1989-1990 the total Loans & Advances in the year 2014-2015 was
Rs 1579.52217lakhs & it increased to Rs 2086.28824lakhs in the
2016-2017from that I find the Loans & Advances position shows
increasing trend.

h) Over dues
Over dues position shows increasing trend from 1989-1990
the total Over dues in the year 2014-2015 was Rs 43.54311lakhs & it
increased to Rs 55.75527lakhs in the 2016-2017 from that I find the
Over dues position shows increasing trend.

i) Working Capital
Working Capital position shows increasing trend from
1989-1990 the total Working Capital in the year 2014-2015 was Rs
2590.8050lakh & it increased to Rs 3473.6617lakhs in the 2016-2017
from that I find the Working Capital position shows increasing trend.

48
II. Suggestion
It is clear that the growth of VBCS on the whole is
satisfactory however one can suggest few steps namely.
a) The most critical area in the improvement of the profit is
reduction in nonperforming assets.
b) Profit maximization should not be the pure motive of the
urban banks. It is argued that liberalization would lead the
banks to earn profit for stability.
c) A significance improvement in the customer service is
necessary.
d) The Administration should be done in innovative manner
computerisation, overall up gradation to technology
rationalisation of bank structures & staffing; reduction of
cost including greater degree of professionalism &
improvement in productivity must receive their due
attention.
e) It allows the financial of agricultural activities by urban
banks since 1999 non urbon banks can finance to member
for agricultural purpose. This will solve the problem of
Surplus position
f) There is need for Simplification of loans process. Bank
should try to simply the procedures & loans sanctioning
period should be two three days.
g) Bank should select target customer and the approach them.
h) The weakness, such as absence of sound management
political interference, lack of delegation of power, delay in
decision making, lack of operation manual, lack on trained
staff, over dues etc should be need to take care.

49
 IV. Hypothesis :-
Following are the hypothesis of the research study
can be explained below:

50
 1) There is a high level awarnesss about the term loan of
pathsanstha .
2) The Significance taking the Loan .
3) The made of profit to the Bank is the rate of Interest
Accumulated on the taken Loan .
4) The Bank Suffer loss when the people do not return the
money taken loan .
5) The Bank and the people have the advantages of giving
and the people have the advantages of giving and taking
the people .

Conclusion :-
Growth in population and income level
increase in the document for the home loan to meet the
growing housing need of people , From the details study

51
 & comparison of home loan schemes of different
Pathsanstha I obsereved that few changes are required in
home loan schemes of the Pathasanstha .
Pathsanstha should increase rate of interest on
deposit for the purpose holder in requirement of loan ,
For proper loan planning the holder require to get proper
guidance , Loan proposal of any applicant should be
sanctioned only , to save tax loan holder should interest
their many in specified investment which is specified
under the income tax law. Affordable interest rate &
easy loan sanction by bank and financial institute have
increased the demand of home in India , A package
scheme should be developed to encourage the loan
holder in requirement off home .
Every loan holder should have their own
CARD if there is not required immediately .

Questionnaire:-
1. In Which year the bank was established
------------------------------------------------------

2 . How Many branches does the bank have and where

52
 --------------------------------------------------------

3 . How Many Members does the bank have

--------------------------------------------------------- -

4 .What are the types of Loan Provided by the bank

----------------------------------------------------------

5 . What are the various types of mortgages

---------------------------------------------------------

6 . What are the rate of interest of loan provide by the

bank .
-----------------------------------------------------------

7 . What are the type of term mortgage loans

------------------------------------------------------

8 . What are the advantages and disadvantages to the bank of

giving loans
----------------------------------------------------------
53
9. Do the bank can verify the rights of mortgages for loan
----------------------------------------------------------

10 . How Much period does the bank offer to return the loan
------------------------------------------------------------

54