Field Training Report

on pacs
(The lambra Cooperative Agriculture
Service Society Ltd)

Submitted to: Agriculture Co-operative Staff Training Institute

Jalandhar
Submitted by: TARA CHAND
Clerk cum
Data Entry Operator
DCCB- KAPURTHALA

ACKNOWLEDGEMENT

As per task assigned to me by authorities of the bank, I undertook the training at

The Lambra Cooperative Agriculture Service Society Ltd for one week. I want

to acknowledge the sincere assistance by Mr Sanjeev sharma, Secretary of

LAMBRA CASS.
I would also like to thank the Society staff for their full cooperation during my
field duty for providing me sufficient information to understand the working of
the society. I also want to show my gratitude towards society members with
whom I interacted and came to know about their experience with the society.
Last but not the least I would like to thank faculty for giving the overview of
what we have to do in the society.
It has been very informative practical experience for me and I extend my
gratitude to the department for making this field learning a part of our training. I
am presenting this Field Learning Report based on my training at the society.

INTRODUCTION
Lambra cooperative agricultural service society(CASS)
established in ____________, . Lambra CASS is located at lambra
village in district jalandhar, Punjab. This society is affiliated to
jalandhar Central Cooperative Bank . lambra Cass has 9 board
of directors and one secretary.
Area of operation of Lambra CASS covers four nearby villages,
namely Lambra
Lamri
Hussanpur
Husainpur

Total number of members of Tira CASS is 578 as on 30-6-2014.

Most of the members are farmers while other members are
carrying out their small businesses.
President: Sh. SANJEEV SHARMA
Secretary: S.BALDEV SINGH

Procedure for Kisan Credit Card(KCC):

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

FIXATION OF MCL:
MCL is fixed on the basis of guidelines given by Registrar of cooperative
societies. Registrar gives yearly review of the MCL to the societies which
society has to follow before giving credit to the members.
MCL depends on 2 factors
1. Nature of crop for which loan has to be taken
2. Area of Land on which production of crop has to be done
MCL for a particular crop = Scale of Finance for that
crop x Area of land
According to the area of land the member possesses, the members are categorized as
Small Farmers - Possessing land up to 5 acres
Big Farmers - Possessing land more than 5 acres

Imbalances of Lambra CASSImbalances of a society means the difference between the recovery at
CASS/PACS level and at Bank level.For the purpose of minimizing these
imbalances,reconcilation of accounts of bank and pacs is done.

SCALE OF FINANCE FOR DIFFERENT CROPS:

Scale of finance for various crops is fixed by Registrar office on
recommendations of State Technical Committee, NABARD, Agriculture
Department, State Level Bankers Committee and concerned officials of Punjab
State Cooperative Bank.
Scale of finance helps prepare MCL for various crops for different
components. As per recent report scale is fixed between 13000 and 35100 for
various crops. The different components of MCL are
1) Component A - Cash
2) Component B - Fertilizers and seeds required for raising crop
3) Component C - 10% of Component A & B towards post harvest /
household / consumption requirement
4) Component D - 20% of Component A & B towards repair and
maintenance of farm assets and Insurance

MAINTENANCE OF MEMBER ACCOUNTS AT

THE PACS LEVEL
Member account ledger is maintained at the society, one register is kept
in the bank.
Daily transactions are recorded in the day book, then they are transferred
to the general ledger

3.Following columns are present in the member register a) Name of the member, Father / Husband name
b) Village to which the member belongs, Age and Occupation

c) Date of becoming member of the society

d) Share Money
e) Signatures / Thumb impression of the member
f) Date of leaving membership of the society
g) Name, Father Name, Caste, Village, and Age of Legal Heirs of the
member.

VOUCHING
There are 3 types of vouchers that are used in the society
* Transfer Voucher
* Receipt Voucher
* Payment Voucher
Cheque book is issued to each member through which he withdraws money
from his KCC account and also pays for fertilizers.
Payment to be received through deposit vouchers in the bank during recovery.

AGRO SERVICE CENTER ACTIVITIES

Ghee provided by food supply dept.
Fertilizers,Pesticides and insecticides are provided by Markfed and
IFFCO.

MAXIMUM CREDIT LIMIT

As per the Scale of Finance fixed by Registrar, Cooperative Societies
Punjab, the MCL (Maximum Credit Limit) of each member is calculated as
per the landholding of that member. To determine the MCL of its members, a
register known as MCL register is being maintained by the cooperative
society. For a particular farmer MCL is calculated on number of acres of his

operational land holding. The amount sanctioned to a farmer is multiple of

his share money held with society.

MCL REGISTER
Lambra CASS has maintained a MCL register in which there is record of
credit taken by the society member against a particular crop. MCL register is
divided into two section based on season i.e MCL Register for Rabi and MCL
register for Kharif.
MCL register include Member Name,Village name, account number, name of
the crop, area of cultivation of that crop, amount of credit required against the
farm land and signature of the member.
The outlay of MCL Register is as follows-

Rabi

__acre

Kharif ___acre

Members
name

Fathers
name

Account no.

Address

Signature

(amount) A

(amount) B

(amount) C

(amount) D

Total

(amount) A

(amount) B

(amount) C

(amount) D

Total

LAND RECORD REGISTER

In this register the landholding of every farmer is recorded .This register is
very useful in calculation of MCL of the member as per land
owned/held by the member.

Lambra CASS has maintained land record register in which

there is record of all the land that has been mortgaged to the
Society. The Unit used to express the area of land is Acre.
In Land record register there is name of the member, his/her
village name, Account name and Members land area under
cultivation(in acre)

STOCK HANDLING
Fertilizer such as Urea and DAP are given by MARKFED who are paid
from the CC Fertilizer account through demand drafts.
Entry of the stock is kept in the stock register

Stock is issued to member on demand in accordance with his MCL limit

and a transfer voucher is collected from him.

Commodities present in stockHousehold Commodities- Ghee , Oil.

Fertilizers- DAP, Urea

Outlay Of Stock RegisterName of article

Date

Particula Openi Recei

rs
ng
pt
balanc durin

Total

Issue
d

Closin Remar
g
ks
balan

g day

ce

Stock verification
The stock is verified by the following pesons :
1.) Concerned Inspector , Deptt. of Cooperation Punjab
2.) Concerned Branch Manager
3.)President of the society.

DEMAND COLLECTION BALANCE

Prepared in general ledger on 28/2 for rabi crops
Prepared by 30/9 for kharif crop advancement

Rabi crops:- The seeds are sown in November/december and harvesting

begins in April/May. Examples- Wheat, Potatoes, Gram, Pea, Mustard, Linseed,
Barley.

Kharif crops:- Kharif crop sowing starts in June and and harvesting is done
in October. Examples- Rice, Soyabean, Sunflower, cotton, Sugarcane, Guar,
Maize, Millet, Peanut.
As per the Latest Data (as on 31.1.2015) :-

Name of
Society

Demand

Imbalances
A/OD

CURRENT

TOTAL

Lambra CASS

2.8 lac

22 lac

102lac

124 lac

RECOVERY MANAGEMENT AT PACS LEVEL:

Crop

Advancement period

Recovery period

Kharif

01/04 to 30/09

01/10 to 31/01

Rabi

01/10 to 28/02

01/04 to 30/06

Within stipulated period, member can pay back his loan to PACS/Bank. PACS
deposits the recovery in the bank with Annex- A (statement showing
receipts/recoveries from members).
In case member is not able to pay his loan back within time, PACS charges
penal interest of 1.5% in excess to prescribed rate.
The recovery process of PACS is very strong. As in the case of defaulter,
Assistant Registrar can issue arrest warrant if the defaulter is not responding
even after receiving the notice.
As last resort, if PACS is not able to get his recovery, the assets of loanee can be
attached for auction in near future if loanee is not paying back the dues.
PACS/CASS fills Recovery Annexure based on the recovery they get by
members, then they provide Recovery Annexure to concerned bank along with
recovery money.

ASSESSING FINANCIAL POSITION OF CASS/PACS

Lambra CASSs Financial Condition- The financial position of PACS can be
accessed from the balance sheet and profit loss sheet. By analysing the balance
sheet of the Lambra CASS, it is found that the society is in profit as the net
profit as on 31/3/2014 is 5.35 lacs.

Maintenance of account book and other record A co-operative society or

class of co-operative societies shall maintain the account books and other
records in such form and manner as may be directed by the Registrar by a
general or special order from time to time.
Preparation of balance-sheet and other accounts- A co-operative society
shall prepare a balance sheet, profit and loss account, trading account and such
other statements relating to accounts as may be specified, from time to time, by
the Registrar, as soon as possible after the close of the co-operative year in such
form, as may be laid down by the Registrar.

SWOT ANALYSIS
Strengths Presence of society at doorstep of its potential customer.
Trust between farmers for Lambra Cooperative Agricultural Society
Communication gap is less as compared to Commercial banks.
It offers less rate of interest on loans as compared to money lenders.
The uniqueness of products that society has got to offer its members is its
biggest strength.
Farmer friendly schemes

 Group pressure helps in the recovery of loans

Weakness Poor infrastructure

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

 Money lenders at the village level provides speedy loans which makes the
customers to go to money lender rather than bank.

GENERAL MANAGEMENT OF COOP. SOCIETY

The general management of the PACS lies in the hands of Board of Directors.
These Board of director includes President, Vice-President and Committee
Members.
These committee members are elected from among the members of the
cooperative society after every 5 years. The committee members once elected
choose their President, Vice President and Secretary among themselves. The
tenure of the committee is 5 years. Election for a new committee is to be
conducted 90 days before the expiry of the term of previous committee. In an
eventuality where the committee is unable to complete election before the
expiry of its term an administrator can be appointed for a period of 6 months
The final authority in a co-operative society is vested in the general body of
members. Each society member has one vote irrespective of his number of
shares.
Annual general meeting -A general meeting of a co-operative society shall be
held in a year for the purpose of(a) approval of the programme of the activities of the society prepared by the
committee for the ensuing year;
(b) election, if any, of the members of the committee other than nominated
members;
(c) consideration of the audit report and the annual report;
(d) disposal of the net profits ; and
(e) consideration of any other matter which may be brought forward in
accordance with the bye-laws.

Special general meetings The committee of a co-operative society may, at

any time call a special general meeting of the society and shall call such
meeting within one month after the receipt of a requisition in writing from the
Registrar or from such number of members or a proportion of the total number
of members, as may be provided in the bye-laws.