HISTORY :The society under study, the kancheepuram central
Co-operative Bank, with effect from 10.05.1915. was registered as a
central co-operative bank.Head Office : Post Box No.9, 15-Sheikpet
North Street, Kancheepuram-631 501.
Branches:The Kancheepuram central co-operative Bank has 48
branches around kacheepuram district. And the main Branches are
1.kamarajar salai, 2.Chrompet, 3.tambaram,
4.guduvanchery,5.ambatur,6.aavadi,7.mugapeir,8.thiruvallur9.porur,10.thiruporur
Date of Registration: 10.05.1967. Date of Opening:
12.05.1967.
ADMINISTRATIVE SET UP:
1secretary
2Assistant secretary
3clerk
4Office assistant
FINANCING CONTROL:1nabard
2State apex co-operative bank
3DISTRICT CENTRAL CO-OP BANK
MANAGEMENT PROFILE: The name of the financing institution from
the Kancheepuram Central Co-operative Bank. The Joint Registrar who
covers the Kancheepuram Region. The Deputy Registrar Circle covers
through out the Chengelpet. The Bank belongs to the jurisdiction of
St.Thomas Mount. The Management Co-operative Sub Registrar /
Special Officer effect manages from 25.05.2001.
Name of the Chairman : Mr.E.KrishnamurthyName of the
Secretary:Mr.P.JeyapaalMAINTAINING OF ACCOUNTS:Meaning: The
Accounting In practice, it is impossible for any businessman to
memorize and recollect all his business dealings. Moreover, he will
be interested in knowing at the end of each year. 1. What he owns?
1. What he owes? 1. How much profit he has earned? 1. Whats his
financial position is? To relieve from the burden of memorizing all
the business dealings and for providingnecessary information,
Accounting was developed.Definition of Accounting : According to
American Institute of Certified Public Accountants (AICP)
Accounting is the art of recording, classifying and summarizing in
a significant manner and in terms of money transactions and events
which are of financial character and interpreting the results
thereof. Objectives of Accounting :1. Maintenance of Accounting
Records. 1. Ascertainment of Profit or Loss. 1. Depiction of
financial position. 1. Providing information. METHODS OF
ACCOUNTING0. Single Entry System. 0. Double Entry System. TYPES OF
ACCOUNTS:1. Personal Accounts:Debit the Receiver Credit the
giver.1. Real Accounts :Debit what comes in Credit what goes out.1.
Nominal Accounts:Debit all expenses and losses Credit all incomes
and gains.
LIABILITY:WHAT DOES LIABILITY MEAN?
Acompany's legal debts or obligationsthat arise during the
course of business operations. Liabilities are settled over time
throughthe transfer of economic benefits including money,goods or
services. LIABILITY OF THE SOCIETY:The liability of the member of
the bank shall be limited to the share capital subscribed by them.
In accounting, liability is a loan, expense, or any other form of
claim on the assets of an entity that must be paid or otherwise
honored by that entity.LIMITED LIABILITY :The limited liability
means the liability of members is limited up to the extend of share
capital subscribed by them. In short we can say Limited Liability
is one that does not go beyond the owner's investment in the
business.UNLIMITED LIABILITY :Unlimited liabilities the members
personal assets such as land, properties, movable and immovable are
attached in the event of loss incurred by the society.OBJECTIVES:
Following are the main objectives of the Kancheepuram central
co-operative bank.To finance co-operative societies registered
under the Tamil Nadu Co-operative Societies Act, 1983To carry on
the business of Banking (banking means the accepting, for the
purpose of lending or investment, of deposits of money from the
public, repayable on demand or otherwise and withdrawable by
cheque, draft, order or otherwise as defined in the Banking
Regulation Act 1949).To open, with the permission of the Registrar,
branches at suitable places in the District.To develop, assist and
co-ordinate the work of affiliated societies;To arrange for the
supervision of societies;To arrange for the holding of periodical
Co-operative conferences and for taking necessary action,
pertaining to its own functions, on the resolution, passed at such
conference;To maintain a library of co-operative literature;To
receive moneys from the Tamil Nadu State Co-operative Bank for
purchasing shares in affiliated societies;To advance long term
loans for the purchase and construction of building and issue of
medium term loans for purchase of vehicles for the employees of the
bank;In addition to the business of Banking, the Bank may engage in
anyone or more of the following forms of business, subject to the
rules and regulations framed by the Board of Directors from time to
time. DUTIES OF CITIZENS:1. Every member should repay the dues to
the co-operative bank in time.2. Every member should exercise his
vote for the selected of Board Of Directors by the board of
member.
MEMBERSHIP :The following persons are eligible to become the
members of the bank.1. Any individual agricultural or
non-agricultural member competent to contract under Section 17 of
the Tamilnadu Co-operative Societies Act 1961 and Section 21 of the
Tamilnadu Co-operative Societies Act 1983 and Section 11 of the
individual should reside within the area of operation or should
have immovable property with the jurisdiction. 1. The Government of
Tamilnadu. 3.The financing bank to which the bank is
Affiliated.4.Minors may be admitted as members in some cases. These
persons are only eligible to get surety loans on the society of
immovable property. The business which are dealt with the bank
should be through their guardian as trustee.
WORKING CAPITAL:WORKING CAPITAL
SHARE CAPITALRESERVE FUNDSOWNED FUNDSBORROWINGS
TNSCP NABARDDEPOSITS
MEMBERS MEMBERS GOVTNON_ MEMBERS
NABARD:NABARD the apex institution providing financial
assistance to agriculture and other economic activities in rural
areas came into existence on July 12, 1982.The main functions of
NABARD pertain lo policy development, coordination, research,
training, etc., relating to rural credit. It provides refinance lo
cooperatives, regional rural banks, etc. Moreover it makes loans
and advances to stale governments for a period not exceeding more
than 20 years to enable (hem lo subscribe directly or indirectly lo
share the capital of cooperative credit societies.Working Capital
:The Working capital of the Kancheepuram central co-operative bank
consists of Owned Funds and Borrowings.The most common liquidity
ratios are the current ratio and the quick ratio is net working
capital, while not a ratio, is a measure of liquidity and
frequently included in this section. The inventory valuation method
can have a significant impact on current ratio and net working
capital.Formula for calculating Net Working Capital = Current
Assets - Current Liabilities.
YEARS2009-20102010-20112011-20122012-20132013-2014
WORKING CAPITAL(Rs. In
crores)1250.741515.861793.232052.472131.9
OWNED FUNDS The Owned Funds of the Bank consists of paid-up
Share Capital plus Reserve Fund created out of the Net Profit. This
is one of the indicators of viability. Share Capital Reserve
Fund
SHARE CAPITAL :Share capital is that part of the capital of a
company received from its owners (i.e. its members or shareholders)
in return for shares. Every company must commence with some share
capital (a minimum of two shares). See authorized share capital;
called-up share capital; issued share capital; paid-up share
capital; reserve capital.
S.NO YEAR SHARE CAPITAL (Rupees in Crores)
12009-2010106.58
22010-2011112.69
32011-2012122.29
42012-2013125.28
52013-201451.67
RESERVE FUND An account set aside by an individual or business
to meet any unexpected costs that mayarise in the future as well as
the future costs of upkeep. In most cases, the fund is simply a
savings account or another highly liquid asset, as it is impossible
to predict when an unexpected cost may arise.However, if thefund is
set up to meetthe costs of scheduled upgrades, less liquid assets
may be used.The Bank is required to create 20% of its Net Profit as
a Reserve Fund to meet the unforeseen losses arises in future. The
Credit society is maintaining two types of reserves. Statutory and
Non-Statutory reserves. This fund is invested in the Kancheepuram
Central Co-operative Bank Ltd. S.NOYEARRESERVE FUNDS(Rupees in
crores)
12012-2013565.95
22007-20081992.19
II. BORROWINGSThe Borrowings are an important sources of
Mobilizing Funds. Loan from Banks (KCCB) Deposits LOAN FROM BANKS
:Meaning :Financial Institutions offer business many types of
short-term loans. No matter what the type of loan, however, the
cost to a borrower is usually measured by the percent interest rate
charged by the lender. The annual interest rate that reflects
amounts of interest paid divided by the amount borrowed is the
effective interest rate. The Kancheepuram central co-operative
bank, borrows long term loans from the Tamil nadu state cooperative
bank because it owned fund was not enough. S.NO YEAR KCCB (Rupees
in crores)
12012-2013287.63
22013-2014131.13
DEPOSITS: Accepting deposits is one of the two major activities
of the banks. Banks are also called custodians of public money.
Basically the money is accepted as deposit for safe keeping. But
since the Banks use this money to earn interest from people who
need money. Banks share a part of this interest with the
depositors. The quantum of interest depends upon the tenor-length
of time for which the depositor wishes to keep the money with the
bank-and the ease of withdrawal. The thumb rule is , longer the
tenor, higher the rate of interest and lesser the restrictions on
withdrawal, lesser the interest. Exceptions however exists.
S.NOYEARDEPOSITS (Rupees in crores)
12009-2010673.39
22010-2011854.05
32011-20121005.00
42012-20131189.32
52013-20141451.25
DEPOSITS:GENERALFUNCTIONSA) Collection Of Deposits : The
Kancheepuram central co-operative bank is authorized to collect
various types of Deposits. Accept deposits from members and from
the public it offers 25% more interest than any other commercial
banks. All the deposits are granted byKancheepuram central
co-operative bank The Bank accepts following types of Deposits.1.
Fixed Deposits. 1. Cash Certificate. 1. Savings Deposits. 1.
Recurring Deposits. 1. Current Account. Deposit may at the
discretion of the Special Officer or president be received at any
time from members and non-members. The collection of deposits and
issuing of Jewel Loans is the secondary function.DEPOSITS
OUTSTANDING POSITION FROM 2012-2014Outstanding Details on
Deposits:PARTICULARS2012-13 (Rs in crores)2013-14 (Rs in
crores)
Short term deposit:
Individual988.61158.3
Cooperative society159.2207.6
Saving deposit:
Individual1581.91606.7
Cooperative society233.7277.9
Current savings:
individual299.4273.9
Cooperative society1008.51117.3
B) ISSUE OF LOANS AND COLLECTION OF LOANS : The Primary
Agricultural Co-operative Credit Society was started in order to
fulfill the credit needs of the Agricultural members. But , at
present, it was extended the services to the Non-Agriculturist
also. Now it undertakes various functions. Giving loans to the
needy members, is the main function of the bank. The various types
of loans issued and collected are :1. Short Term Loan / Crop Loan
1. Medium Term Loan 1. Jewel Loan 1. Jewel Loan (Agri.) 1. Loan on
Deposits 1. House Mortgage Loan 1. Consumer Loan 1. Micro Credit
Loan 1. Self help Group Loan 1. SHG Auto Loan
S.NOYEARLoans (Rupees in crores)
12009-2010993.59
22010-20111219.10
32011-20121403.19
42012-20131592.34
52013-20141507.61
MANAGEMENT AND ADMINISTRATION:
BOOKS AND RECORDS MAINTAINED1. Chittaa. Due by ( Sundry
Creditors )b. Due to ( Sundry Debtors )c. Deposits and Loans sub
day Book.2. Loans Outstanding Register3. Main Day Book.4. General
Ledger.5. Investment Register.6. Dividend Register.7. Cash
Remittance Register8. Due date dairy. 9. Members Loan Register.10.
Crop war Register.11. Loan Disbursement Register.12. Members
Overdue Register.13. Land Register.14. Insurance Register.15.
Demand collection due Balance Register16. Admission Book.17.
Minutes Book.18. Forms and Ledger Register.19. Attendance
Register.20. Postage Register.21. Godown Register.22. Gunnies
details Register.23. Pay Disbursement.24. Dispatch Register.25.
Inward Bill Register.26. Stock Register.27. Jewel Loan Register.28.
Jewel Stock Register.
SPECIAL FUNCTIONS:COLLECTION OF DEPOSITSThe bank is authorized
to collect various types of deposits. The Society gives 1% higher
rate of interest that any other commercial banks or societies. All
the deposits are guaranteed by the Kancheepuram Central
Co-operative Bank.Types Of Deposits:Deposits may, at the discretion
of the Special Officer or President be received at any time from
members and non-members. The bank collect the following types of
deposits.0. Fixed Deposit 0. Cash Certificate 0. Savings Deposits
0. Recurring Deposits 0. Security Deposits
1 ) FIXED DEPOSITS :Fixed Deposits is one which is made for a
fixed period and for fixed rate of interest for fixed amount. It is
collected from the members and general public. It is withdrawable
only at the time of maturity. Fixed Deposits can be made for
minimum period of 7 Days interest is payable monthly or
annually.
S.NO YEARFIXED DEPOSITS OUTSTANDING(Rs. In crores)
12006-20071072.13
22007-20081150.68
32008-20091117.13
42009-20101323.93
52010-20111881.51
B) CASH CERTIFICATE: The compound interest is given. This
certificate is issued under the joint signature of two authorized
officers of the bank. The minimum period is one year. At the time
of maturity interest is calculated and paid along with the
principle amount. S.NO YEARCASH CERTIFICATE OUTSTANDING(Rs. In
crores)
12006-20078.81
22007-20084.50
32008-20093.44
42009-20102.51
52010-20110.92
C) SAVINGS DEPOSITS :It is collected from the members and the
general public. It is deposited by the members and public, whenever
they had money. It is intended to tap the saving of the middle
income and low-income groups. It develops the habit of saving among
them. It is withdrawable during the working hours of the bank.S.NO
YEARSAVINGS DEPOSITS OUTSTANDING (Rs. In crores)
12006-20071056.62
22007-2008808.27
32008-2009630.36
42009-2010646.48
52010-2011825.42
D) RECURRING DEPOSIT :It is collected from the members and
non-members. A fixed amount usually in multiples of Rs.5/- to be
deposited by the depositor every month for a fixed period of
12,24,36,48 and 60 months. It is accepted for a minimum period of
12 months. Every depositor shall pay his monthly deposit before the
end of the month of which it relates, fraction there of compound
interest is calculated.
S.NO YEARRECURRING DEPOSIT OUTSTANDING (Rs. In crores)
12006-20078.91
22007-200812.67
32008-200917.15
42009-201019.46
52010-201120.40
LOANS FROM OPERATIONSA. ISSUE OF LOANSB. RECOVERY OF LOANSC.
ACTION TAKEN AGAINST THE DEFAULTER.
ISSUE AND RECOVERY OF LOANS :Disbursing Loans to the needy
members is the most important function of the credit society.TYPES
OF LOANS0. Short Term / Crop Loan (KISHAN) 0. Medium Term Loan. 0.
Jewel Loan 0. Loan on Deposit 0. House Mortgage Loan 0. Consumer
Loan 0. Micro Credit Loan The above types are explained as
below.
1) Short Term / Crop Loan (KISHAN) :Short term loan is a type of
Loan issued for a period of 12 months by the bank. This is issued
to the members for the purpose of purchasing fertilizers and
pesticides and to meet the seasonal agricultural expenses. Current
period this loan called KISHAN Crop Loan is a credit facility
sanctioned on the basic of anticipated crop. It is sanctioned only
to meet the seasonal agricultural needs. The period of the loan is
fixed according to the types of crop and the seasons. Generally the
period is 12 months. Seasonality is fixed by the agricultural
Department.At first, the Primary Agricultural Co-operative Credit
Society prepares Annual Credit Limit Statement for each and every A
Class members. It contains full details of individuals and his
cultivable land. The Bank sends this statement to the Chengalpet
Circle Supervisor and Field Manager along with the signature of the
President and Secretary. 2) Medium Term Loan :Medium Term Loans are
given to the members for the following purposes.1. To effect semi
permanent improvement on lands. 1. To increase production which is
important to the growth of agriculture. 1. To put vegetables and
fruit gardens in the land. 1. To arrange for proper irrigation
facilities. 1. To purchase cattles, implements, machinery, vehicles
etc., for agriculture. 1. To purchase donkeys and mules. 1. To
construct and repair farmhouses, living house or stable for
cattles. 1. To repay prior debts. 1. To grow hens, fish, bees, silk
moth and cattles. 1. To purchase implements used in agriculture and
to construct buildings, or to do production works or to spend on
their management. 1. To purchase shares in processing societies. 1.
To purchase land.
3) Jewel Loan :The bank has issued Jewel Loan to members and
non-members. It is sanctioned on the security or the pledge of gold
Jewel which belonging to the borrowers and not to exceed 70% of the
estimated market value of the Jewels. The main purpose of giving
Jewel Loan is to meet the family expenses of the borrowers. The
period of the loan is one year. The bank introduced this loan in
the year 1987.A member who wants to get jewel loan should first
meet the secretary to get application form. Before getting the
application form, he should become the B class members of the bank.
B class share value is Rs.5/- and the entrance fee is Re.1/- only.
It is not refundable. The application form should be filled with
full details. It is signed by the borrowers and atleast two
witnesses in the presence of the Secretary/President of the society
or Special Officer and he should submit it to the Secretary. The
Secretary and President will verify the application form. After
verification of the application form they will send it to the
appraiser for valuation of the jewels. After verification of the
jewels he weighs it and the value is recorded. After knowing the
exact value, he should ask the member to give the application form
and make the necessary entries in the form, specifying the value,
weight and the other essential details. He should put the signature
in the form to certify that, he has valued the jewel. And he sends
it to the Secretary/President. Appraiser, affixes his seal on the
jewel packet and then, the banker to seal it. Then the jewels are
kept in the safe custody of the society. The Reserve Bank of India
fixes the rate of interest. Now the bank charges 13% as the rate of
interest for the jewel loan. If the borrowers fails to repay the
loan on time 3% interest is collected additionally
aspenaltyinterest.
4) Loan On Deposit :This Bank provides loan on deposits to the
tune 80% of the deposits amount of each depositor charging +2%
margin as deposit interest rate.5) House Mortgage Loan :The
kanchepuram central cooperative bank has introduced Housing Loan in
the year 1992. The bank issues Housing Loans to A Class members
only. The loan is sanctioned with in the area of operation. To get
the Housing Loan the members should give full details about
property namely plot.1. Documents 1. Parent Documents 1. House Tax
Receipts 1. Approved Plan 1. Tax Bill 1. Electricity Board Bill 1.
Encumbrance Certificate 1. Family Ration Card (Xerox) 1. Passport
Size Photos three copies 1. Electricity Board Card (Xerox) 1.
Maximum loan amount Rs.5 lakhs in the year with agreement. The rate
of interest is 14%.6) Consumer Loan :The Bank has issued Consumer
Loan for its member. Salary certificate will be produced for it.
Maximum Rs.25,000 is issued as loan amount for buying TV, Two
Wheeler, Washing Machine. Period is for 2 years and its rate of
interest is 16%.7) Micro Credit Loan :The Bank has issued Micro
Credit Loan to member. It is sanctioned for ladies also from Rs.500
to Rs.5000 only for flower shops, fish shops, street vendors.
Period is for 4 months. Rate of Interest 5%.
RATE OF INTEREST DETAILS FOR LOANS:
S.NO TYPESOF LOANSYPERCENTAGETAGE
1PADDY7%
2JEWEL LOAN14%
3CONSUMER LOAN12%
4N.F.S14%
5S.H.G LOAN12.5%
S.NOTYPES OF ACCOUNTSPERCENTAGE
1SAVINGS ACCOUNT3.50%
2FIXED DEPOSIT
46 Days to 90 Days5.5%
91 Days to 180 Days6.5%
181 Days to 364 Days7.5%
1 Year to below 2 Year8.5%
2 Years and Above9%
3RECURRING DEPOSIT
1 Year8.5%
Above 2 Years9%
To Senior CitizenAdd. 1%
Self Help GroupsSelf Help Group is group of rural poor who have
volunteered to organize themselves into a group for eradication of
poverty of the members. They agree to save regularly and convert
their savings into a Common Fund known as the Group
corpus. The members of the group agree to use this common fund
and such other funds that they may receive as a group through a
common management. The group formation will keep in view the
following broad guidelines :Generally a self-help group may consist
of 10 to 20 persons. However, in difficult areas like deserts,
hills and areas with scattered and sparse population and in case of
minor irrigation and disabled persons, this number may be from
5-20. The difficult areas have to be identified by the State Level
SGSY Committee and the above relaxation in membership will be
permitted only in such areas.Generally all members of the group
should belong to families below the poverty line. However, if
necessary, a maximum of 20% and in exceptional cases , where
essentially required, upto a maximum of 30% of the members in a
group may be taken from families marginally above the poverty line
living contiguously with BPL families and if they are acceptable to
the BPL members of the group. This will help the families of
occupational groups like agricultural labourers, marginal farmers
and artisans marginally above the poverty line, or who may have
been excluded from the BPL list to become members of the Self Help
Group. However,the APL members will not be eligible for the subsidy
under the scheme. The group shall not consist of more than one
member from the same family. A person should not be a member of
more than one group. The BPL families must actively participate in
the management and decision making, which should not ordinarily be
entirely in the hands of APL families. Further, APL members of the
Self Help Group shall not become office bearers ( Group Leader,
Assistant Group Leader or Treasurer ) of the Group.
AUDIT CLASSIFICATIONS MARKS A 60% & AboveB 50% - 59%C 35% -
49%D Below 35%
NET PROFIT DISTRIBUTION The Sozhanganallur Primary Agricultural
Co-operative Credit Society has eared profit from 2004 till now.
The profit position of society as below.S.NOYEARLoans (Rupees in
crores)
12009-20103.98
22010-20113.70
32011-20127.49
42012-201310.82
52013-201414.88
ACTION TAKEN AGAINST THE DEFAULTER :This KCCB takes all possible
steps initially to recover the loan issued. However, is a member
does not repay the loan installment continuously for 3months, the
society institutes action against such defaulters only after
informing the defaulter by registered post. Even after all these
steps were taken, if the member does not pay attention, the
concerned individuals file will be handed over to the arbitration
for further action.WORK LEARNT During the Training I have
undergone, I have learnt the followings:1. I have gone through the
Bye-Laws of the society and understood the important contents of
it. 1. I have understood the various functions undertaken by the
society. 1. I have understood clearly the terms fixed and followed.
Regarding maintaining of Accounts regarding Audit Classification.
1. I have understood the disposal of Net Profit in Conformity with
the Bye-Laws, Rules and Acts. 1. I have gone all the Books, Records
,Applications, Various Forms, Etc. maintained by the co-operative
credit society. SUGGESTION Advertisement is needed, to make an
effective turning profit for benefiting more customers in the bank.
Government of TamilNadu have to provide sufficient funds.
Improvement is needed in the Public Distribution Shops.
Infrastructure facility , Sufficient Furniture is needed for all
customers. CONCLUSION: This institution training gave me the
practical experience. It helps me to know how the management terms
are used and where it is applicable in the organization. It gave me
an experience of knowing about how to deal with Customers. Also I
have learned from my company that handling with a service is not
important but in what way it has the social responsibilities and
how do the credit society members toattain benefit by satisfaction
on their services. The motivation of the kanchepuram central
cooperative bank is only Service to the Customers. They are not
aiming for the Huge Profits.
KANCHEPURAM CENTRAL COOPERATIVE BANKName of the bank :
kanchepuram central cooperative bankBranch : guduvancherry
branchLocation : 32,First main road, Gandhi
nagar,Chennai-600020Business hours : 9.00 AM To 4.30 PM (Monday to
Friday) 9.00 AM To 11.00 AM (Saturday).No of Staff : 4(including
manager)Service provided : Savings &Current account, , Jewel
loans, Deposit, Safe deposit, Fixed deposit,Cash CertificateMICR
Code : 600091001IFSC Code : TNSC0000001Deposits (Till date
31.12.2014) : Rs. 77,45,35,493.80Loans (Till date 31.12.2014) :
Rs.30,27,56,509.50Net income : Rs.54,23,39.302