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Introduction To Project Report:: Shiva Credit Co-Operative Society Limited
Introduction To Project Report:: Shiva Credit Co-Operative Society Limited
After this state, barter system came into existence. Barter system
means trade with exchange of goods, with the absence of money. At this
stage the concept of dependency emerged in the routine life of the human
beings. And their dependency demanded co-operation that is how co-
operation was born.
Area of study:
“Shiva credit co-operative society” is located in Nyamathi road in
Honnale. Is selected and their information about the opinion towards the
society’s functioning are collected.
Methodology:
The data is collected for the preparation of this project report
includes both primary and secondary data. The primary data is that the
secretary of the society. Directors of the society and the society’s staff is
personally interviews to collect information about the credit facilities
provided by the society to the study.
Secondary data has been collected throng survey the survey was
conducted; questionnaire was prepared and passed to the selected
customers which reveal the customer idea about the society.
Benefits of study:
1. We can get a clear idea about the credit facilities provided by the
society.
2. The report is helpful in knowing about the customers wants about
the society’s service.
3. The study given us to know the performance and growth of the
society.
4. By preparing this project report the study helps us in coming to our
own conclusion about the society’s and to write our own
suggestion for its improvement.
CHAPTER-2
Concept of co-operation
Meaning:
Co-operation means working together to accomplish the common
goal through cooperative principles.
Definition of co-operation
Co-operation has been defined by different authorities in different
ways. Some definitions are as follows:
In 1919 co-operative was removed from the central list and made a
provincial (State) subject under the federal constitution. Vigorous efforts
were made by the govt. during the great depression period of the thirties
to save the movement. During the IInd world war, also the Indian co-
operative movement experienced URS and down till independence. The
co-operative in india has recorded by the tardy growth, inspite of the
morale and material support provided by the government.
Co-operative organization:
Meanings:
A co-operative organization [also referred to as a co-op] is a form
of business ownership that consists of a group of people who have joined
together to perform a business function more efficiently than each
individual could do alone. The purpose of a co-operative organization is
not to make a profit for itself. But to improve each member’s situation.
Definition:
The internal labour organization definer a co-operative as “an
association of persons, usually of limited, means, who have voluntarily
joined together to achieve a common economic and together the
formation of a democratically controlled business organization making
equitable contribution to the capital required and accepting a fair share of
risks and benefits of the undertaking”.
doesnot mean that a co-operative society will have work for profit.
It is quite usual for society to earn profit by extending their service
to max-members.
5) Disposal of surplus: It is usual for commercial concern to distribute
profits among the owners in the ration of their capital distribution
or in agreed ration. A co-operative society differs from trading co.
in this respect. Under the co-operative form of ownership and
organization, surplus arising of a year working is given to the
members not directly or divided on share held by each of them. But
in the form of a bonus which need not be proportionate to their
respective capital contribution.
6) Fixed return on capitals: The fixed or limited return on capital
subscribed to the society must be paid out of the surplus to the
members. “Making payment of fixed interest or paid up capital
definitely a first charge on the trading surplus, of all those who
joined the society a solid reason for leaving their savings in
deposits with it”.
7) State control and co-operative status: Although voluntary in their
basic character the co-operative society are subject to considerable
state control and supervision. In india the co-operative society act
as the case may.
4. Housing co-operatives:
Housing co-operatives are the association of persons who are
interested either in recurring dealership of a hours or obtaining
accommodation at fair and reasonable rent such societies are formed
in urban areas. Mostly intending, builders of hours join together to
form co-operatives of this kind. Through, there societies they can
secure not merely financial assistance but also the economics of
purchase of building materials in bulk the membership of such a
society may be thrown open to all those who are already to deposit
money in the society for interest. Each member has to buy atleast one
share and the liability is generally limited to his contribution.
5. Credit Co-operative:
The co-operatives credit societies are voluntary associated of the
people with moderate means formed with the object of extending short
CHAPTER – 4
Since during olden days the small formers or the peasants of India
are suffering from many problems. The main problem to them is food,
clothing and shelter. They all depend on agriculture to satisfy all these
needs. Agriculture in India is depend on “Monsoon” which is uncertain
and which is playing with lives of our frames and peasant. When
monsoon use to fail the crops will be washed away with the floods. Thus
formers and peasant were played by the monsoon. During the failure of
monsoon former and peasant used to suffer a lot. They felt difficulty even
to satisfy their basic needs. At this time the former or the peasant used to
go to “ZAMINDARS” or “LANDLORDS” to ask for help the zamindars
and landlords are god to them. They are to grant the former loan at a very
high rate of interest after pleading the lands from the formers. As the
peasant and formers had only way, they used to agree the conditions of
Not only to the formers even to the middle and high class people
realize the need of co-operative society. It is helpful all aspects like
industries, banking, clubs etc it is very useful to every persons or
individual either he may be an industrialist a professional or a
businessman people of every class in modern days are farming their own
group or societies with the help of principles of co-operation by making
their and others dreams come true.
Many SSI are suffering from the competition of large scale and
other SSI. But now after knowing the principles the medium and LSI, by
making organization or co-operations of them they all work together for
achievements of their common goods, not only SSI but also medium and
LSI also can compete with other companies or with more bigger
companies or with international companies by making their co-operative
they decided terms like price, quantity etc. and they all put their gathered
efforts to compete with other bigger or international companies, with no
difficulty.
CHAPTER – 5
A) A Profile
B) Source of Fund
A Profile:
The “SHIVA CREDIT CO-OPERATIVE SOCIETY” is a co-
operative society, which is registered under “KARNATAKA STATE
CO-OPERATIVE SOCIETY ACT of 1959 column-4”, established on
31.07.2000 has completed its useful of a 9 years in Honnali.
share of the society and on “31st July 2000” the society was retgistered
under the name “SHIVA CREDIT CO-OPERATIVE SOCIETY
LIMITED”
50,66,255 for self loans. The total transaction of the society was
Rs.29,99,834/- the society has not made any loss in this year.
In 22.09.2002 it conducted its 2nd annual general body meeting and
the members were discussed about the incomes and expenditures
profits and losses and the budget and loans and advances during their
year its total transactrion was Rs.5,42,70,995 and during this year
competerisation of transaction was adopted.
If we study the above figure, it is very clear that year by year, the
society has gained more and more profit and had economic progress.
The society is helpful in the community not only in the Honnali but in
the various region society stands as on ideal model for private
upcoming community in the society.
Source of Fund:
The main source of fund of this society is share capital collected
from share holders which is limited to Rs.50crores and with 4500
members Acceptance of deposits from members. Its own funds which are
created out of profits and borrowing from district central co-operative
banks in case of need.
From the above table we can conclude that from 2004-05 to 2005-
06 the total deposit has been increased of 35.96 lakhs and from 2005-06
to 2006-07. The total deposit increased to 162.73 lakhs and the year
2006-07 to 2007-08. The deposits were increased to 50.01 as compared to
previous year the deposit collected got steady growth. In the year 2007-08
to 2008-09 the deposits got decreases. It has been came down to 56.14
lakhs.
500
402.13
400 366.17
300
200
100
0
2005 2006 2007 2008 2009
The society provides the loan on the surely of gold ornaments for a
maximum amount of Rs.1,00,000/- the loan is given on the basis of 65%
of the appraises value of the gold. The rate of interest charged is 11% the
amount should be repaid within 6 months on daily basic.
250
198.3
200 188.16 188.74
157.67
150
107.6
100
50
0
2005 2006 2007 2008 2009
From the above table, we come to know the total lending of the
society from 2005 to 2009. As the loans and advances given are
increasing year by year upto 19.8 crores this shows the improvement and
lending capacity of the society.
From the above table we can say that from the year 2005 to 2009
every item has increased except number of members; it got decreased
from 2005 to 2008 and again it increased to 3557 and investments in
other banks also decreased and also fluctuated in 2008 and 2009, it
increased at the last two years.
SHARE HOLDERS
PRESIDENT
VICE PRESIDENT
DIRECTORS
SECRETARY
ACCOUNTANT
SERVENTS
CHAPTER – 6
A. Meaning of Credit
B. Classification of Credit
Definition:
The word “Credit” has been derived from the Latin word “Credo”
meaning “I believe”. Credo, however is a combination of the Sanskrit
word, meaning “Trust” and the Latin word “do” meaning “I Place”
According to Wingfield streford, credit is “nothing more or less than
faith and faith no less on the stock exchange than before the alter, is
the substance of things hoped for, the evidence of things not seen”.
According to William Stanley Jevons, credit is “nothing but the
deferring of payment”.
According to Cole, “credit is purchasing power not derived from
income, but created by financial institutions either as an offset to idle
incomes held by depositors in the banks, or as a net addition to the
total amount of purchasing power”.
It is in this sense that the term credit is used in current monetary
discussions.
Classification of Credit:
Credit may be either for production or for consumption. “The line
between business and consumption credit is not easy to draw. Even the
purpose of the loan does not represent as the whether it is business or
consumption credit. It is easier to distinguish a purpose if a complete
financial record of the farmer is available but even then may be difficulty
in affixing an appropriate label to some loans”.
3. Family Expenditure:
Purchase of Domestic utilities clothing etc. medical education and
other family expenses.
Purchase or construction of Residential houses.
Expenses relating to marriage and other ceremonies.
4. Other purpose:
a. These include purchase of buildings and ornaments shares and
debentures of companies, co-operatives.
In the Society, the Secretory knows from the experience that all the
depositors does not withdraw all their money at the same time. Moreover,
has when there are withdrawals, the society gets deposits fromt eh
existing as well as new depositors. The loans granted for fixed assets like
buildings, machinery, repayable within 3 to 4 years. The secretary
stipulates periodical repayment of installment towards liquidation of these
advances thus by a proper employment of funds, the secretary is able to
keep the funds liquid or repayable at short notice and is in a position to
meet the demand of his depositor as members.
c. Office note:
It contains date of membership of the applicant and bailee, share
amount paid, if any penalty paid is post if bailee has paid any
penalty on the loan amount is the past is past if any loan taken and
not repaid is time etc.
d. Particulars of bailee:
The particulars of the bailee column consist of the two phases,
one should be filled by the applicant, regarding particulars of bailee
and other phase should be filled by the staff this column contains
the particulars like name of shareholders in the bailee family type
of loan taken by the bailee etc.
Self Loan:
Self loan is a loan provided by the society to its members on
members own responsibility. Rs.2000 without interest. For the loan
exceeding Rs.2000 its provides loan upto Rs.5000/- at 15% rate of
interest.
The following in the diagram showing total self loan provided by the
society.
60
50 48.02
43.93
40 34.96
30
22.84
19.45
20
10
0
2004-05 2005-06 2006-07 2007-08 2008-09
Vehicle loan:
Vehicle loan is provided by the society on the surely of Vehicles
for two wheelers and three wheelers the loan amount will be 80% of the
on the road value and 4 wheelers the loan amount will be 75% of the on
the road value and 13% rate of interest for both repayable in 40 and 60
installments respedively.
30
25.4
25
20 19
15
0
2004-05 2005-06 2006-07 2007-08 2008-09
The loan provided to business is increased year by year the members are
benifited by this loan.
Loan on Salary:
Society provides loan to employees who are the members of it and
it is based on the salary of the persons and the interest rate charged on
this loan is 15%.
1.4 1.3
1.2 1.2
1.2
0.8 0.75
0.6
0.4
0.2
0
2004-05 2005-06 2006-07 2007-08 2008-09
12
10
8
5.5
6
3.8
4 2.6
2
0
2004-05 2005-06 2006-07 2007-08 2008-09
60 57.5
50 45.8
40
30
19.9
20
10
0
2004-05 2005-06 2006-07 2007-08 2008-09
From the above data the housing loan provided is fluctuated from year to
year and decreased to 2.25lakhs in 2008-09.
4 3.75
3.2
3 2.51
2.25
2
0
2004-05 2005-06 2006-07 2007-08 2008-09
1.19
1.2
1
0.8
0.8
0.6
0.4
0.23
0.2 0.15
0.05
0
2004-05 2005-06 2006-07 2007-08 2008-09
Following table shows the total loan on pigmy deposit from 2004-05
to 2008-09.
Year Total loan (Rs. in lakhs)
2004-05 6.7
2005-06 18.0
2006-07 16.4
2007-08 16.6
2008-09 16.18
From the above table we can conclude the loan taken on pigmy deposits
are increased in 2005-06 and no majors till 2008-09.
CHAPTER – 7
ANALYSIS OF RESPONSE
Introduction
Analysis of Response
ANALYSIS OF RESPONSE
Introduction
Survey means going into the depth of the responses and collecting
attitude of the members and problems faced by the them while dealing
into different parts and the members are given the format of questionnaire
The survey has been successfully carried out and the respondents
are having close contact with the society. They gave good and realistic
Group,
1 18-25 years 08 16
2 25-40 years 25 50
3 40-50 years 10 20
4 Above 50 years 07 14
50 100
Interpretation
The above table shows that 50% of respondents are the age group
of 25-40 years, followed by 20% respondents from the age group of 40-
50 years, while 16% of respondents from the age group of 18-25 years
and 14% of respondents are from the age group of Above 50 years.
Group
80
70
60
50 50
40
30
20 20
16
14
10
0
18-25 years 25-40 years 40-50 years Above 50 years
Table 2
1 Male 30 60
2 Female 20 40
50 100
Interpretation:
In the above table, the response obtained from the male members is
more in numbers i.e. 60% and remaining 40% of respondents are female
Sales
20
30
Table: 3
Table showing classification of members on the basis of their
occupation,
Sl.No Occupation No.of %
Respondents
1 Business 08 16
man
2 Agriculture 15 30
3 Employees 14 28
4 Others 13 26
Total 50 100
Source: Survey result
Interpretation:
In the above table, we can find that majority of individuals belong
to professionals. i. E. 30% followed by the govt. employees who are in
28% and 26% individuals belong to others group includes Housewife and
students. While 16% of respondents belong to business who are in less in
numbers.
30
25
20
15
10
Business man
Agriculture
Employees
Other
Table: 4
Table showing distribution of respondents according to their
monthly income.
Sl.No Income (in No.of %
Rs.) Respondents
1 Below 5000 20 40
2 5000-10000 14 28
3 10000- 12 24
20000
4 Above 4 08
20000
Total 50 100
Source: Survey result
Interpretation:
From the above table we come to know that 40% of the
respondents belong to below 5000 group, while 28% of respondents
belong to middle income group, followed by 24% of respondents belong
to in come group of 10000-20000 and 8% of respondents belong to
income group of above 20000.
40
35
30
25
20
15
10
0
Below 5000 5000-10000 10000-20000 Above 20000
Table 5
Table showing distribution of respondents on the basis of
period of Contact with the society.
Sl.No Period No.of %
Respondents
1 Below 2 07 14
years
2 2-5 years 19 38
3 5-10 years 21 42
4 Above 10 03 06
years
Total 50 100
Source: Survey result
Interpretation
From the above table, we can see that repondents who have contact
with the society 5-10 are more in numbers. The members who are in
contact with the society for 5-10 years are given god suggestions. And in
the above table the numbers of respondents who are dealing with society
for below 2 years, 2-5 years and above 10 years are in 14%, 38% and
06% respectively.
Talbe6
Table showing distribution of repsondents on the basis of
Opinion about society services.
Sl.No opinion No.of %
Respondents
1 Excellent 03 06
2 Good 17 34
3 Satisfactory 30 60
4 Bad 00 00
Total 50 100
Source: Survey result
Interpretation:
60 60
50
40 34
30
20
6
10
0
0
Excellent
good
satisfactory
bad
Table 7
Table showing distrubution of respondents according to Borrowing
of Loans.
Interpretation:
From the above table it shows that 90% of respondents borrow loan
from the society and remaining 10% of respondents replied that they have
not borrowed any loan from the society.
NO, 10
Yes, 90
Table 8
Table showing classification of respondets on the basis of the Type of
loan required by the member. (ONLY APPLICABLE TO 45
MEMBERS)
Sl.No Type of loan No.of %
required Respondents
1 Long – term 08 18
2 Middle- term 28 62
3 Short-term 09 20
Total 50 100
Source: Survey result
Interpretation
From the above table, we can easily understood that the long-term
lona required by the members are in 18% of total respondents, while 62%
of total respondents, while 20% of the respondents requires medium and
shoret term loan respectively.
Short-term Long-term
20% 18%
Middle-term
62%
Table 9
Table showing the classification of members on the basis of
satisfaction regarding loan facilities provided by the society.
Interpretation:
In the above table, 35 respondents were satisfied out of 45
respondents (78%) with the lona facilities provided by the society and
remaining 22% of total respondents are dissatisfied with loan facilities
given by the society.
No
22%
yes
78%
Table 10
Table showing the types of loan borrowed by the members.
Interpretation:
From the above table, it clear the 44% of members are borrowed
Self loan and 15% of members are borrowed gold loan, and 06% of
members are borrowed Business and pigmy loan, and 20% of respondents
borrowed fixed deposit loan, and 3% of total respondents borrowed
recurring deposit, N.S.C., Shiva Yojana Nidhi. and vehicle loan.
Vehical loan, 3
Shiva Yojana
Nidhi, 3
n.S.C. loan, 0
Self loan, 4
Recirromg Business, 6
deposit loan, 3
Gold loan, 15
fixed deposit
loan, 20
Pigmy loan, 6
Table 11
Table showing the opinion of the members regarding interest
charged on loans.
Interpretation:
From the above table shows that 89% of respondents are satisfied
with the interest charged on loans, while 11% of membes’s states that
interest charged on loan by society is high. No respondents feels that
society charges low rate of interest.
low High
0% 11%
reasonalbe
89%
Table 12
Table showing the opinion of respondents regarding installments for
the repayment of loan.
Interpretation:
From the above table, we can see that the 78% respondents is
stratified with the installment given by the society for repayment of loan.
While 26% of the total respodents are moderately satisfied and 15% of
the total respondents are dissatisfied with the number of installments
gives by the society for repayment of loan. They need few more
installement to repay the borrowed loan.
reasonalbe
78%
suggestions, since they have long contact with the society. The
society considers the suggestions given by senior members.
The society concentrates the female members because they are less
in number. And, it should take necessary measures to increase
female members also.
The majority of members belong to middle-income group. Hence
society should concentrate on the mobilization of savings of
middle-income class of members.
Majority of the respondets are satisfied with the services provide
by the society, but till society should improve its services.
The respondents who are borrowed loan from the society are more
in numbres and there is also some of members who are not
borrowed any loan from society. Therefore, society should
concentrate on those members who are not borrowed any loan from
the society.
Most of the member’s are required long-term land medium term
loans. So, the society increase its long-term, loans by reducing
short-term, loans.
The loans facilities given by the society is satisfied to the majority
of the members but, till society should take measures to satisfy
other members.
The maximum members utilize only Self loan, business loan, gold
loan, and vehicle loan. Some the society should re-arrange all those
loan facilities, which are not utilized by the members.
Interest charged on loan is moderately satisfied to members and
society further decrease its interest rate and attract more members.
Introduction
For the improvement of any organization, it should take proper
action or measures for continuous improvement on the basis of
opinions given by the respondetns and observations made during the
survey the followings suggestions have been given for improvement
of performance. While dealing with the society some of the membes
are found satisfied and some of them are found dissatisfied. However,
measures should be taken to all categories of members.
1. Educational Loan:
Most of the members were not properly educated. So, the
society should concentrate on the education of the members and
should provide loan facilities to the higher education.
3. Tedious procedures:
The procedures made by the society for granting loans are
very long and it is difficult to borrow loan for the members who are
in urgent.
The society should shorten it sprovisions and procedures as
possible as low and society should give loan facilities for members
who are in urgent.
4. Share capital:
To meet the above requirements and to give best services to
its members the society should increase its share capital by raising
funds.
5. Entrepreneur Development:
The society must increase the amount of business loan given
to its shareholders for the purpose of increase the enterpreniual
capacity of its members.
10.Proper checking:
In case of providing vehicles loan the society must keep the
one key of the vehicles and one photo copy of the R.C. Book,
society must write the term “WITH LOAN” and must put the seal
of the society on the society on the original R.C. Book. This helps
to identifly and recovers the loan granted by the society.
Conclusion
No, a doubt, Shiva credit co-operative society ltd., is working in
the right direction. It cannot be ignored, since its establishment it is
striving hard for improving the economic conditions of the
members.
At the same time it is servicing its members in various ways i.e.,
advancing loans as and when needed at cheper rate of interest,
collects deposits from their savings, work for welfare of members
etc.
Loan distribution and collection system is also good and majority
of the members were satisfied. Loan is allotted without
discrimination members are satisfied with the working of the
society.
It is necessarily that society should always orient its activities
towards welfare of members. It is well-known fact that the main
objective of the society is “EACH FOR ALL AND ALL FOR
EACH”. Therefore, it is necessary that society should always aim
at continuous development or adoption, which will be more helpful
to the members of its services.
The opinion of each member should be of great importance in
taking steps towards development. Therefore, research studies like
the present on may help the society to re-orient its strategy related
to advancing loans, deposits mobilizations and provision of
different services.
MEMBER’S QUESTIONNAIRE
“SHIVA CREDIT CO-OPERATIVE SOCIETY Ltd”, HONNALI
Dear Respondents,
1. Name :__________________________________
2. Residing At :__________________________________
__________________________________
3. Contact No :_______________
9. From how many years you are dealing with this society?
_______________
Date: Signature
Place:
BIBLOGRAPHY
4. Co-operation - T.N.Hajela
6. www.google.com
7. www.co-operative society.com