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Report on Internship at

Teachers Co-operative Society Ltd.

By

Sunny Joy Dsouza

4SO17MBA50

Submitted to

VISVESVARAYA TECHNOLOGICAL UNIVERSITY, BELAGAVI

In partial fulfilment of the requirements for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

INTERNAL GUIDE

Mr Vinish P Assistant Professor Department of Business Administration SJEC

Under the guidance of

EXTERNAL GUIDE

Mr Ganapathi Upadhya Main Branch Manager Teachers’ Co-operative Bank Ltd.

Main Branch Manager Teachers’ Co -operative Bank Ltd. Department of Business Administration St. Joseph Engineering

Department of Business Administration

St. Joseph Engineering College

Vamanjoor, Mangalore-575028

Acknowledgement

I, first of all would thank and praise the almighty for having given me this day and this opportunity. I wish to express my gratitude to those people who have presented me great support directly or indirectly in completion of this internship report of 4 weeks.

I articulate my gratefulness to Mr. Pramod Hegde, the General Manager of Teachers Co-

operative Society Ltd. for permitting me to study this organisation and examine in depth the

aspects of it.

I earnestly express my gratitude to Mr. Ganapathi Upadhya, the accountant for acting as my

external guide at the organization and for his patience and extending precious guidance along

with all the staff members in different branches of the society for their kind cooperation, assistance and involvement in sharing the core basic information relevant to the study.

I would like to express my deepest thanks to Dr Prakash Pinto, Dean and my internal guide Mr. Vinish P, Assistant Professor at Department of Business Administration, St. Joseph Engineering College for his valuable supervision throughout the work.

I also extend my heartfelt thanks to the Visvesvaraya Technological University for including project report as a part of my Curriculum.

I

- Sunny Joy Dsouza

Declaration

I Sunny Joy Dsouza, hereby declare that the report on internship at Teachers Co-operative

Society Ltd. is prepared by me under the guidance of Mr. Vinish P, Assistant Professor - St Joseph Engineering College and external assistance by Mr. Ganapathi Upadhya, Main Branch Manager, Teachers Co-operative Society Ltd.

I also declare that this internship work is towards the partial fulfilment of the university regulations for the award of degree of Master of Business Administration by Visvesvaraya Technological University, Belagavi.

I have undergone the internship for a period of 4 weeks. I further declare that this report is based on the original study undertaken by me and has not been submitted for the award of any degree/diploma from any other University/Institution.

Place: Udupi

Date: 15-10-2018

Signature of the Student

II

Table of content

Sl No.

Particulars

Page No.

1

Executive summary

 
 

Chapter 1: Introduction

 

2

Introduction about the Internship

1-4

Industry Profile

 

Chapter 2: Organization Profile

 

Background

Nature of Business

3

Vision, Mission, Quality Policy

5-14

Product/service Profile

Ownership Pattern

Achievements/Awards if any

Future growth and prospects

4

Chapter 3: McKenzie’s 7s Framework

15-20

5

Chapter 4: SWOT Analysis

20-24

6

Chapter 5: Analysis of financial statements

25-30

7

Chapter 6: Learning Experience

31-32

8

Bibliography

33

9

Annexure

34-35

III

List of tables and graphs

Tables and Graph No.

Particulars

Page No.

Table 1.1

Comparison of Share Capital

6

Table 1.2

Product/Service Profile

9

 

Share Capital in the year 2015 and

 

Table 1.3

2016

11

 

Board Member of Society Since

 

Table 1.4

1980

11-12

Table 1.5

Mckinsey's Hard and Soft Elements

16

Table 1.6

Return on Equity

26

Table 1.7

Return on Asset

26

Table 1.8

Proprietary Ratio

27

Table 1.9

Solvency Ratio

27-28

Table 2.0

Comparative Balance Sheet

28-29

Table 2.1

Trading Account

34

Table 2.2

Profit and Loss Account

34-35

Table 2.3

Balance Sheet

35

IV

Executive summary

Cooperative societies play vital role in developing saving habits among people and promote banking practices. Cooperative society is not a recent concept. In India societies were existent way before independence. Cooperative societies have played a major role in supplying credit to the agriculture sector and has bestowed hope to millions of farmers, agriculturists of our country. National policy recommended on cooperatives by National Development Council (NDC) in the year 1958 has been nourishing cooperative societies ever since. Cooperative societies are restricted to a particular location and are controlled under 'Registrar of cooperative societies'. The study confines itself on the working of the organization and is one dimensioned.

Teachers Co-operative Society Ltd. was established as a small ration distributing unit in the year 1915. In time it has evolved wholesomely and made its way into banking industry, expanding its branches, serving people of different background and gaining their trust. During the short association with the bank, observations were made on the healthy treatment given to the employees and enhancement in the financial status of the employees who have taken advantage of the schemes and deposit facilities of the bank.

Like any other organization Teachers Co-operative Society Ltd. comprises of a staff, a strategy, an organizational structure, a leader and employees. Proper alignment of these dynamics has resulted in effective achievement of objectives, risk and opportunities tagged along. Consumer satisfaction and convenience interaction has made it as attractive endeavour meanwhile it has to triumph over certain setbacks. It has won many awards for its excellence. Further the society has achieved great feat in cooperative sector but still there is a need to introduce the new technology used by other banking organizations i.e. services like Core Banking System (CBS), ATM facilities to improve customer strength.

In this sector the most used financial statements are the balance sheet and profit and loss account, where the balance sheet shows the financial position and profit and loss account shows the net profit or net loss of a society. Financial Ratio analysis provides great deal of data in evaluating its performance. The study deals with the Financial Performance Analysis of the society for the year 2016 and 2017.

The study exclusively educates on the fact that degree of satisfaction matters when it is a question of mutual understanding between the banker and client.

IV

Chapter 1

Introduction about Internship, Industry Profile

Introduction about the Internship

Internship aims at intensifying the theoretical knowledge of the students with the practical industrial knowledge. Internship helps in developing transferable skills such as communications skills, interpersonal skills, technical skills, teamwork skills, management skills and problem-solving skills. Through internship the students learn to deal with the real life scenarios of the business.

Internship helps in developing a base for professional attitude; students can identify their interests in a particular career. It also helps the employer to test the aptitude of the student and the grade the intern for further employment. Each student is expected to be supervised by a mentor throughout the internship. The student will need to fill in a monthly/weekly report to report his/her progress during the internship whereas the mentor will need to give an appraisal

to the student on a monthly/weekly basis. An internship is job training for white collar and

professional careers. There are online websites like www.letsintern.com which offer paid internship located at different places, interns can choose from a variety of companies and apply according to their roles and opportunities.

Comprehensively internship provides a bird's eye view about the industry that the student is interested in.

Industry profile

Definition of Cooperative Society Section 4 of Indian co-operative societies act 1912 defines a cooperative as “a society which has its objective, the promotion of economic interest of its members in accordance with co- operative principles.” Meaning

A co-operative society is a voluntary association started with a aim or goal of service of its

members. It is a form of business where the individuals belonging to the same class join their

hands for the promotion or achievement of their mutual or common goals. Major Cooperative banks in India

Saraswat Cooperative Bank Ltd

Cosmos Cooperative Urban Bank Ltd

Shamrao Vithal Cooperative Bank Ltd

Abhyudaya Cooperative Bank Ltd

1

Bharat Cooperative Bank Ltd

TJSB Sahakari Bank

Co-operatives in India The cooperative movement in India owes its origin to agriculture and allied sectors. Towards the end of the 19th century, the problems of rural indebtedness and the consequent conditions of farmers created an environment for the chit funds and cooperative societies. The farmers

generally found the cooperative movement an attractive mechanism for pooling their meagre resources for solving common problems relating to credit, supplies of inputs and marketing of agricultural produce. The experience gained in the working of cooperatives led to the enactment of Cooperative Credit Societies Act, 1904. Subsequently, a more comprehensive legislation called the Cooperative Societies Act was enacted. This Act, inter alia, provided for the creation of the post of registrar of cooperative societies and registration of cooperative societies for various purposes and audit. The item "Cooperative Societies" is a State Subject under entry No.32 of the State List of the Constitution of India.

With the emergence of national federations of cooperative societies in various functional areas and to obviate the plethora of different laws governing the same types of societies, a need was felt for a comprehensive Central legislation to consolidate the laws governing such cooperative societies. Therefore, the Multi-State Cooperative Societies Act, 1984 was enacted by Parliament under Entry No. 44 of the Union List of the Constitution of India.

Evolution Co-operative Movement in India

The history of cooperative societies in pre-independence era. The co-operative movement in the Indian context in the pre-independence era can be classified into four phases:

a) Initiation stage (1904-1911):

In olden days non- institutional agencies in the shape of money-lenders were charging exorbitant rates of interest from the helpless peasants. The situation was such that the farmers were forced to sell their belongings to repay the debts. Ultimately the government understood the miserable plight of the farmers and passed three Acts viz, the Deccan Agriculture Relief Act (1879), the Land Improvement Loan Act (1883) and the Agriculturists Loan Act (1884).

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During 1892, the Madras Government appointed Frederick Nicholson to study the village banks organized on co-operative lines in Germany. In the report he suggested to establish co- operative societies for supplying rural credit. Famine Commission of 1901 strongly recommended that in order to prevent famine, agriculturists should be granted loans to improve agriculture. By 1904, the Co-operative Society Act was passed.

b) Modification stage (1912-1918):

The shortcomings of the Act of 1904 were rectified by enacting another Co-operative Societies Act of 1912. The new Act provided legal protection to all types of co-operatives including central financing agencies and supervising unions. The distinction between rural and urban societies was given a new focus. The liability was limited in the case of primary societies and unlimited for central societies.

In 1914 the Government appointed a committee under the chairmanship of Sir Edward Mac Lagan to review the progress of co-operative movement. The report of the committee came out in 1915.

c) Expansion stage (1919-29):

Under the Montague- Chelmsford Act of 1919, co-operation became a provincial subject which gave further impetus to the movement. Various states passed their own Acts to make co- operative movement a successful one. The membership of the co-operative societies increased considerably during this period.

The same period also witnessed the birth of co-operative land mortgage banks first in Punjab and subsequently land mortgage banks were registered in Madras (1925) and Bombay (1926). The year 1929 witnessed a world-wide economic depression. The prices of the agricultural commodities fell down to a remarkable extent. Unemployment along with other economic crises grew up. The agriculturists could not pay back the loans of the societies. Over dues increased unexpectedly and co-operative societies were ruined.

d) Restructuring stage (1930-1946):

Various enquiry committees, viz., Vijayaraghava Charya Committee in Madras, Rehabilitation Enquiry Committees of Travancore and Mysore, Kale Committee in Gwalior, Mehta and Bhansali Committee in Bombay and Wace Committee in Punjab etc. were appointed for examining the possibilities of restructuring the co-operative societies.

3

The Indian Central Banking Enquiry Committee (1931) highlighted the glaring lacunae, particularly with reference to undue delays and inadequacy of credit. In 1937 the Congress Ministry came to power in many states and revived interest in organising the cooperative movement. They conducted enquiries about the failure of the cooperative societies and made provisions for payment of overdue.

The abnormal conditions created by Second World War led to far-reaching developments in

the co-operative movement. Prices of agricultural commodities began to rise. The co-operative societies gained in strength and vigour. The All India Co-operative Planning Committee in

1945 also gave a Philip to the growth of co-operative movement.

After India attained Independence in August, 1947, cooperatives assumed a great significance in poverty removal and faster socio-economic growth. With the advent of the planning process, cooperatives became an integral part of the Five Year Plans. The All-India Rural Credit Survey Committee Report, 1954 recommended an integrated approach to cooperative credit and emphasised the need for viable credit cooperative societies by expanding their area of operation, encouraging rural savings and diversifying business.

In 1958 the National Development Council (NDC) had recommended a national policy on

cooperatives, there has been a substantial growth of this sector in diverse areas of the economy during the past few decades. The number of all types of cooperatives increased from 1.81 lakh in 1950-51 to 4.53 lakh in 1996-97. Though the Cooperatives were lagging behind in rural credit till 1991, they regained their prime place with 62% share in rural crop loans between

1991 and 2001.

4

Chapter 2

Organization Profile

Background of Teachers Co-operative Society Ltd.

It was owing to the abounding zeal and vision of the late Sri Molahalli Shiva Rao (that great pioneer in the founding of co-operative society in South Kanara) that the teachers of Udupi Taluk met together in 1915 in Udupi for the purpose of founding a co-operative society of their own. The brave soul who, having taken his cue from Sri Molahalli Shiva Rao, took the lead in organizing the teachers’ co-operative society with very modest objectives and who rendered splendid yeoman service to it in the first view critical and vital years was Sri Shirali Subba Rao, the then Headmaster of the Board High School, Udupi. In those days the High School situated in the different towns which were Taluk Headquarters were rightly regarded as very good centres of educational endeavour and the Headmasters of these school were widely respected, so it came as no surprise that Sri Shirali Subba Rao, the then Headmaster of the board high school, Udupi, performed devotedly and effectively the part which he took on himself. Owing to his sincerity and his dedicated labour, the Co-operative Society throve well it kept obtaining a growing measure of co-operation from the teachers in Udupi Taluk.

measure of co-operation from the teachers in Udupi Taluk. Late Sri Shirali Subba Rao Founder Chairman

Late Sri Shirali Subba Rao Founder Chairman

In the beginning, a hundred rupees was the maximum loan that used to be granted to any teacher by the Society, which was indeed very understandable as the membership numbered a mere ten then, and the share capital was a mere five- hundred. After Sri Shirali Subba Rao’s years of dedicated leadership, two masterful personalities from Christian High School (the other premier High School of Udupi then) nurtured the Society; these were Mr. L.J. Salins (an Assistant Master of Christian High School) and Mr. A.S. Karat. In course of time, the leadership swung back, as it were, to the Board high School, Udupi, and Sri K. Venkata Rao threw himself with characteristic energy into the teachers’ co-operative venture and rendered his labour of love to the Society.

In the beginning, a hundred rupees was the maximum loan that used to be granted to any teacher by the Society, which was indeed very understandable as the membership numbered a mere ten then, and the share capital was a mere five- hundred. After Sri Shirali Subba Rao’s years of dedicated leadership, two masterful personalities from Christian High School (the other premier High School of Udupi then) nurtured the Society; these were Mr. L.J. Salins

5

(an Assistant Master of Christian High School) and Mr. A.S. Karat (who was Headmaster of the School for some years). In course of time, the leadership swung back, as it were, to the Board high School, Udupi, and Sri K. Venkata Rao (who was Asst. Master in the Board High School) threw himself with characteristic energy into the teachers’ co-operative venture and rendered his labour of love to the Society. After him, it was given to Sri B. Shiva Rao, teacher, St. Cecily’s Convent School, Udupi, to guide the Society with distinction.

After 1965 (i.e. after its fiftieth year, which, however passed without being marked by any formal celebration of Golden Jubileee) its growth was at a very considerable rate. During this period, the late Sri K. Honnayya Shetty (who later became the Editor of the Kannada weekly Navayuga) and Sri B. Vittal Shetty were among the more active members of the executive committee whose efforts in behalf of the Society proved so much to the purpose.

Over the years, the Society has done well not only by its timely aid to many a teacher but also by inculcating in many of the teaching fraternity the saving habit which is so vital for the growth whether of the nation or of the individual.

Table 1.1 Below is the comparison of Share capital, Deposit, Member loan, and Profit of the year 1980 and 2017:

Particulars

Year 1980 ()

Year 2017 ()

Share capital

6201

37962405.00

Deposit

4664

2354751597.16

Member loan

8809

2036779146.00

Profit

2672

30288177.74

These comparative figures show that the society is in good progressive state.

6

Nature of Business

The word cooperative suggests working together with other for attainment of a common goal. Thus, Teachers Co-operative Society Ltd. can be said of consisting following nature:

1. Voluntary membership

In Teachers Co-operative Society Ltd it can be called as a cardinal principle. A person who has

a common interest and is prepared to be abiding by the rules of the society has the right to join the society as and when he wishes to do so, continue in it as long as he likes, and leave it at his will.

2. Open membership

Apart from being voluntary in nature, the membership of a co-operative organization is open to all irrespective of race, color, creed, caste, or sex. In Teachers Co-operative Society Ltd., every customer to the society compulsorily has to be the member of the society i.e. the customer is required to pay a membership fee of ₹250 as cost of acquiring a share of the society.

3. Finances

The finances of a co-operative society are contributed by members through the purchase of shares. Since co-operatives are generally formed to help the weaker and poorer sections of the society, their capital collections are meager.

4. Service motive

Teachers Co-operative Society Ltd. is an organization established to provide credit for the

needy. It gives major priority in donating for the charity, providing for the educational infrastructure like school books and uniforms. Teachers Co-operative Society Ltd. has a branch established in 'Byndoor' which provides ration to the people. It imposes very less formalities and procedure while obtaining loan so that the people become more familiar to the banking practices.

5. Distribution of surplus

The surplus of profit is distributed in various aspects that contribute to the welfare of the community and the society itself. Teachers Co-operative Society Ltd. divides its yearly profit into building fund, government education fund, draft loan fund, members welfare fund, employees aid fund, etc. Ensuring the funds are utilized optimally.

7

6. Registration and legal status Being voluntary in character, registration of a co-operative is optional. In India, co-operatives desiring to be registered may do so under the Co-operative Societies Act, 1912, or relevant State Co-operative Societies Acts. Teachers Co-operative Society Ltd. is registered under Co- operative Societies Act, 1912. The minimum essential conditions for getting a co-operative society registered:

(i)

There must be at least 10 adult persons

(ii)

The application should provide for essential information, e.g. name and

address of the society, its aims and objects, details of share capital, etc.

(iii) Along with the application must also be enclosed two copies of the

byelaws.

(iv) The Registrar after the scrutiny of the application, which must be duly signed by at least

10 members, and satisfying himself about the correctness of the co-operative society may issue a certificate, under his seal and signature, and the society will now come into existence and acquire the legal status.

6. Business enterprise

Teachers Co-operative Society Ltd engages in businesses with social responsibility. It plays a meaningful economic role in the community life by serving and performing as efficiently and

responsively as the other financial and business enterprises. Cooperatives have to generate surplus to be able to continually improve and expand its services. They have to be viable,

creative, enterprising, and efficient to continually grow and serve the needs of their members. Increasing patronage cannot be maintained without good quality service, management, and performance.

7. Education and training

Teachers Co-operative Society Ltd. provides extensive training to its employees with the purpose of developing the cooperative into a well developed movement. Co-operation is an idea which is simple in theory, but difficult in practice. All of us agree that co-operation is good, useful, and essential, but when we translate the concept into action, bottlenecks block our paths, views clash, and sentiments come in the way.

Vision of Teachers Co-operative Society Ltd.

"To fulfil its role in a responsible manner and to provide quick and quality service to customers to keep the customers at ease while operating"

8

Mission of Teachers Co-operative Society Ltd.

"To be a leading global customer-focused and competitive society by providing good financial service to its customers and also to satisfy each and every person who is linked with the society

Quality Policy

"We the members of Teachers Co-operative Society Ltd. are committed to social and economic development of the community and achieve highest level of customer satisfaction"

Product /Service Profile of Teachers Co-operative Society Ltd.

The society provides 15% dividend to its shareholders. The society works as an independent and self-contained association. In the past 103 years it has never borrowed and loan from any institution, commercial banks or individuals. The service profile of Teachers Co-operative Society Ltd. Includes

Table 1.2

*as per year 2016-17

 

Fixed Deposit

 

46

days to 90 days

7.50%

91

days to 180 days

8.50%

181 days to364 days

9.00%

1

year and above

9.50%

 

Deposits for Senior Citizen

1

year and above

10.00%

 

Chethana Cash Certificate

1

year and above (amount doubles in 86 months)

9.50%

 

Recurring Deposit

1

year and above but less than 3 years

9.50%

3

year and above

10.00%

 

Savings Bank Account

5.00%

 

Daily Deposit Pigmy

For a period of 12 months

4.00%

9

Other services provided by Teachers Co-operative Society Ltd. are:

Loans

1. Jewel Loan

2. Vehicle Loan

3. Medium Term Loan

4. Short Term Loan

5. Medium Term Secured Loan

6. Housing Loan

7. Secured Loan

8. Project Loan

Western Union Money Transfer

Safe Deposit Locker Facilities

E-stamping

LIC Bhagya Laxmi Policy

Yashaswini Health Card

NEFT/RTGS

Teachers Co-operative Society Ltd. owns one godown at Thenkapete where essential commodities are sold on the ration card holders through fair price shops

Electronic card holding cash upto 50,000 a product of ICICI Bank

Ownership Pattern Teachers Co-operative Society Ltd. was established in the year 1915. Since then it has been managed by various personnel. A society has no physical existence. It is created by law and enjoys certain rights and privileges of a natural person. It cannot act on its own thus it requires competent personnel to administer itself. Thus, the activities and decisions are entrusted to the board of directors who are elected from amongst the shareholders. Board of Directors lay down the Banks policies and directs the company's affairs. The share capital of Teachers Co-operative Society Ltd. includes the capital contributed by the 'A' class members. 'D' class members, and 'E' class members.

Table 1.3 Share capital of different members of different division in 2015-16 and 2016-17 is as follows:

10

 

No. of

 

No. of

 

Divisions

members

2015-16

members

2016-17

'A' Class Share Capital

2,698

65,59,900.00

2,725

67,14,260.00

'D' Class Share Capital

14,498

2,63,30,600.00

15,167

2,91,38,825.00

'E' Class Share Capital

101

17,80,150.00

109

20,59,600.00

'C' Class Share Capital

4,754

43,550.00

5,646

49,720.00

Total

22,051

3,47,14,200.00

23,647

3,79,62,405.00

Board of Directors:

23,647 3,79,62,405.00 Board of Directors: Sri. Kishan Raj Shetty. President Directors: Sri K.

Sri. Kishan Raj Shetty. President

Directors:

of Directors: Sri. Kishan Raj Shetty. President Directors: Sri K. Manjunath Shetty Sri Rajesh K.C Sri.

Sri K. Manjunath Shetty

Raj Shetty. President Directors: Sri K. Manjunath Shetty Sri Rajesh K.C Sri. Sundara A. Vice President

Sri Rajesh K.C

President Directors: Sri K. Manjunath Shetty Sri Rajesh K.C Sri. Sundara A. Vice President Sri. C.

Sri. Sundara A. Vice President

Shetty Sri Rajesh K.C Sri. Sundara A. Vice President Sri. C. Ashok Kumar Hegde Smt. Sharavathi

Sri. C. Ashok Kumar Hegde

Sri. Sundara A. Vice President Sri. C. Ashok Kumar Hegde Smt. Sharavathi U.R Dr. Ram Mohan

Smt. Sharavathi U.R

Vice President Sri. C. Ashok Kumar Hegde Smt. Sharavathi U.R Dr. Ram Mohan Pai B Sri

Dr. Ram Mohan Pai B

C. Ashok Kumar Hegde Smt. Sharavathi U.R Dr. Ram Mohan Pai B Sri Balakrishna Shetty M.

Sri Balakrishna Shetty

M.

11

Hegde Smt. Sharavathi U.R Dr. Ram Mohan Pai B Sri Balakrishna Shetty M. 11 Sri. Ashok

Sri. Ashok Kumar Shetty

Hegde Smt. Sharavathi U.R Dr. Ram Mohan Pai B Sri Balakrishna Shetty M. 11 Sri. Ashok

Sri G.Damodar Shastri

Sri Mahadeva Manja Sri. Vishwanath Shetty Smt. Nagarathna S Sri M Bhaskar Mayya Sri Dr.Rajendra

Sri Mahadeva Manja

Sri Mahadeva Manja Sri. Vishwanath Shetty Smt. Nagarathna S Sri M Bhaskar Mayya Sri Dr.Rajendra K

Sri. Vishwanath Shetty

Sri Mahadeva Manja Sri. Vishwanath Shetty Smt. Nagarathna S Sri M Bhaskar Mayya Sri Dr.Rajendra K

Smt. Nagarathna S

Sri Mahadeva Manja Sri. Vishwanath Shetty Smt. Nagarathna S Sri M Bhaskar Mayya Sri Dr.Rajendra K

Sri M Bhaskar Mayya

Sri. Vishwanath Shetty Smt. Nagarathna S Sri M Bhaskar Mayya Sri Dr.Rajendra K Sri. Pramod Hegde

Sri Dr.Rajendra K

Smt. Nagarathna S Sri M Bhaskar Mayya Sri Dr.Rajendra K Sri. Pramod Hegde G General Manager

Sri. Pramod Hegde G

General Manager

Achievements/Awards

K Sri. Pramod Hegde G General Manager Achievements/Awards Sri Ravindra Hegde Sri M. Ganesh Kumar Shetty

Sri Ravindra Hegde

G General Manager Achievements/Awards Sri Ravindra Hegde Sri M. Ganesh Kumar Shetty Sri Santosh Kumar Shetty

Sri M. Ganesh Kumar Shetty

Sri Ravindra Hegde Sri M. Ganesh Kumar Shetty Sri Santosh Kumar Shetty Dr. Roshan Kumar Shetty

Sri Santosh Kumar Shetty

Hegde Sri M. Ganesh Kumar Shetty Sri Santosh Kumar Shetty Dr. Roshan Kumar Shetty Teachers Co-operative

Dr. Roshan Kumar Shetty

Teachers Co-operative Society Ltd. has bagged many awards and recognitions for its

service and achievement in betterment of the society and its customers. Below are some

notable achievements of Teachers Co-operative Society Ltd.:

'Best Credit Cooperative Society' of Udupi award in the year 2003-04, 2004-05 and appreciation letter

12

'All India Business and Community Foundation' award from new Delhi

'Individual Achievement and National Development' award

'Indian Organization for Business Organization for Commerce and Industry' from new Delhi

'Lifetime achievement' award with gold medal

'Rashtriya Udyoga Ratna' award

The society has received the 'National award for Cooperative excellence'. 'Award for Excellence-2012' by the Udupi chamber of commerce.

Teachers Co-operative Society Ltd. has been the only society to secure 'Biennial award for Co-operative Excellence' state level award for the 2 nd time from central government for its excellence in Cooperative banking administration

State Level Award “Centenary Award of Karnataka State Co-operation Movement” at Centennial Financing Ceremony of Co-operative Movement in Mysore

Future growth and prospects

Teachers Co-operative Society Ltd. has been successful in edging the competition from the

commercial banks and tends to continue the business with fine economic flow. It has

supremacy in its facility of providing loans. The convenience factor compels the customer to

deposit their savings and obtain loans. Working for the welfare of the society has always been

one of the strong motive of the society, it has laid down some plans for its growth in the

coming years.

A plan to accumulate 250 crores of deposit followed by loans accordingly and a

minimum annual business of ₹1500 crores

To organize 'Vanamahotsava' within the workflow of the association in order to spread

awareness about environment to the people

To shift and fully equip the branch of 'Belthangady' to a different building. Shift the office

in 'Byndoor' branch from 1 st floor to ground floor. And to buy all the branches that are

held by rent

Increase the quality of service by furnishing new technology and advanced equipments in

the society

Cleanliness Campaign to protect the environment around the society

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Identifying the handicapped from the family of its members and providing financial help.

Also providing three-wheeler vehicle if necessary

Installation of drinking water facilities in deprived areas of the community and to build

hospital and bus stands

Offering 1% discount to the loan borrower who has successfully paid the complete loan

amount on time

To form a loan repayment squad, give more importance to loan repayment and to keep

the unproductive loan at the minimum

To organize Health camps, Consumer education sessions and lot more social development

activities as conducted last year by Teachers Co-operative Society Ltd.

Schemes to improve the poor economic condition of the society, to improve the economic

situation of women and bestow financial help

To improve the business of the organization, deposit and loan protocol, staff service provisions, and rectify any other provisions

14

Chapter 3

McKinsey's 7s Framework with Special Reference to Organisation

McKinsey's 7s framework with special reference to Teachers Co-Operative Society Ltd.

While some models of organizational effectiveness go in and out of fashion, one that has persisted is the McKinsey's 7-S framework. Developed in the early 1980s by Tom Peters and Robert Waterman, two consultants working at the McKinsey & Company consulting firm, the basic premise of the model is that there are seven internal aspects of an organization that need to be aligned if it is to be successful.

This tool helps in understanding how the organization elements are interrelated and how can they be aligned to improve the performance when changes take place. Changes like restructuring, new process, change of leadership, etc. The 7-S framework can be used to find out the inconsistencies between these 7 elements. The model is based on the theory that, for an organization to perform well, these seven elements need to be aligned and mutually reinforcing. So, the model can be used to help identify what needs to be realigned to improve performance.

Basically the 7 elements in McKinsey's 7-S framework help in evaluating the inconsistencies lying in the organization. It helps to ask the right question but rarely provide answers to all questions. This model is most helpful in developing strategy. In other words, each element can be considered and questions can be asked to evaluate the aspects within each element.

For example: Style (one of the elements in McKinsey 7-S framework model)

a. What kind of leadership style is used?

b. Is the leadership style effective?

c. Do the employees tend to be cooperative or competitive?

So, basically this tool can be used in a wide variety of situations where an alignment perspective

is useful, for example:

Improve the performance of a company

Examine the likely effects of future changes within a company

Align departments and processes during a merger or acquisition

Determine how best to implement a proposed strategy

15

Table 1.5 McKinsey's 7 independent elements are categorized as 'hard' and 'soft' elements. Hard

Table 1.5 McKinsey's 7 independent elements are categorized as 'hard' and 'soft' elements.

Hard elements

Soft elements

Strategy

Shared Values

Structure

Skills

Systems

Style

 

Staff

"Hard" elements are easier to define or identify and management can directly influence them:

These are strategy statements; organization charts and reporting lines; and formal processes and IT systems. "Soft" elements, on the other hand, can be more difficult to describe, and are less tangible and more influenced by culture. However, these soft elements are as important as the hard elements if the organization is going to be successful. The way the model is presented in Figure 1 below depicts the interdependency of the elements and indicates how a change in one affects all the others:

1. Strategy:

In an organization it is the plan devised to maintain and build competitive advantage over its competitors. Forming viable strategy becomes very essential in a cooperative society to function smoothly. The strategy Teachers Co-Operative Society Ltd. has worked like a charm

16

in securing potential customers. The strategies of Teachers Co-Operative Society Ltd. could be stated as:

Growth and expansion: This has helped the society in effectively responding to the environmental changes, to gain a competitive advantage over their competitors and increase the membership of the society

Cooperative awareness: Cooperate can be propagated through many media channels. Teachers Co-Operative Society Ltd. does the same by donating and contributing to educational institutions and other backward communities expansively. This initiates an awareness chain among the people, also it propagates through newspapers, meeting, personal contacts.

2.

Structure:

Shareholder Board Director of
Shareholder
Board Director of
contacts. 2. Structure: Shareholder Board Director of Vice President Director President Manager General Branch

Vice President Director President

Board Director of Vice President Director President Manager General Branch Manager Senior Clerk Junior Clerk
Board Director of Vice President Director President Manager General Branch Manager Senior Clerk Junior Clerk
Manager General
Manager General
of Vice President Director President Manager General Branch Manager Senior Clerk Junior Clerk Sales Assistant

Branch Manager

Senior Clerk
Senior Clerk
Director President Manager General Branch Manager Senior Clerk Junior Clerk Sales Assistant Attender Sales Accountant 17

Junior Clerk

Director President Manager General Branch Manager Senior Clerk Junior Clerk Sales Assistant Attender Sales Accountant 17

Sales Assistant

Attender
Attender
Sales
Sales
Accountant
Accountant

17

It is the way the society is prearranged and who reports to whom. Organization structure is the backbone of management. Sound organization structure contributes greatly to the success of the enterprise. An organizational chart is a dramatic representation which shows the important aspects of an organization including major functions and their respective relationship. It enables each executive and employee to understand his position in the organization. Organization structure is fundamental to create salary structure for an organization.

3. System:

Daily activities and procedures needed to be performed to get the work done and how decisions are made. Systems are the area of the firm that determines how business is done and it should be the main focus for managers during organizational change.

Creating awareness about savings, Self Help Group, co-operation among member and modern agriculture system among the members

Raising income from members by helping them to undertake handicrafts, animal husbandry, poultry farming, etc.

Establishing branches to express the convenience factor to the customers so that they can access the services nearby their location

Providing financial and technical help to small scale industries, cottage industries, transport

operations and help self employed persons for setting up their own business

4.

Shared Values:

It is the core value of the company influenced by the corporate culture and general work ethic. Shared Values are at the core of McKinsey 7s model. They are the norms and standards that guide employee behavior and company actions and thus, are the foundation of every organization. The main motive behind the assimilation of society is to regulate the credit in the society. The dream of the founder on establishing this society was to improve the economic condition of the farmers and small business owner who have their potential locked up because of inadequate financial supply. The 7s model revolves around shared value element. Shared value in a society refers to the corporate culture that the organization has developed, it is not possible to create corporate culture at once. Shared value is considered very crucial because it is a psychological attribute that every single person at the organization has work on. A good shared value creates appreciative attitude towards others and allows the organization to carry on with good ethics.

18

5.

Style:

The style of leadership adopted in Teachers Co-Operative Society Ltd. is an autocratic one. It

represents the way the company is managed by top-level managers, how they interact, what actions do they take and their symbolic value. In other words, it is the management style of company’s leaders. The directors take most of the financial decisions for the company. The management also follows Democratic leadership style.

6. Staff:

There are number of employees in Teachers Co-Operative Society Ltd., each of them is trained in the initial period of their work to be effective and self-sufficient.

Manpower planning: It is the process by which a firm ensures that it has the right number of people and right kind of people at the right place and at right time of doing work

Staff Meetings: A meeting is conducted for the members or the staff to discuss the issues relating to the running of the company and evaluate performance of the staff. The meeting is usually held once in a month

Training and development: It is a process of learning sequenced behavior. It attempts to improve their performance on the current job accordingly prepare them for an intended job. It achieves changes in the Knowledge, Skills and Attitudes

Employee appraisal: It enables the employee to know how they are performing in comparison with the set standards. Teachers Co-Operative Society Ltd. follows this; here the assistant's grade will be evaluated by the managers or the senior officers. Self-appraisal system is undertaken for senior officers and executives.

Promotions: Only after considering the following promotion will be granted in Teachers Co-Operative Society Ltd.

Marks allotted in performance appraisal event

Marks in the interview

Willingness of the employees to take up higher responsibilities

Year of service etc

19

7. Skill:

Skills are the abilities that society's employees perform very well. They also include capabilities and competences. During organizational change, the question often arises of what skills the company will really need to reinforce its new strategy or new structure. The employees are trained to gain these skills. An annual study tour is held to teach the competencies in a unique way.

20

Chapter 4

SWOT Analysis

SWOT analysis of Teachers Co-Operative Society Ltd.

SWOT analysis of Teachers Co-Operative Society Ltd. The point of a SWOT analysis is to help

The point of a SWOT analysis is to help you develop a strong business strategy by making sure you’ve considered all of your business’s strengths and weaknesses, as well as the opportunities and threats it faces in the marketplace. As you might have guessed from that last sentence, S.W.O.T. is an acronym that stands for Strengths, Weaknesses, Opportunities, and Threats. A SWOT analysis is an organized list of your business’s greatest strengths, weaknesses, opportunities, and threats.

Strengths and weaknesses are internal to the company (think: reputation, patents, location). You can change them over time but not without some work. Opportunities and threats are external (think: suppliers, competitors, prices) - they are out there in the market, happening whether you like it or not. You can’t change them. Existing businesses can use a SWOT analysis, at any time, to assess a changing environment and respond proactively.

New businesses should use a SWOT analysis as a part of their planning process. There is no “one size fits all” plan for your business and thinking about your new business in terms of its unique “SWOTs” will put you on the right track right away and save you from a lot of headaches later on.

The SWOT of Teachers Co-Operative Society Ltd. can be drafted as below:

Strength

Teachers Co-Operative Society's strength lies in its human resource. The hard work and the cooperation of the employees helped the society to be recognized at the national level. The professional management, committed leadership to the principles of cooperation, mutual win- win relationship with the customer, has helped it to be a leader among cooperative societies. Some of the strengths of Teachers Co-Operative Society Ltd. are:

21

Employees are given certain quotas, tasks to complete for each month. Tasks like creating RD a/c, issuing loans, etc.

The targets are set in percentage growth rather than comparing it as growth from last month

Employees at Teachers Co-Operative Society Ltd. give efficient performance in completing the tasks

Employees involve in canvassing to secure more deposits and increase the number of accounts to be created

In Teachers Co-Operative Society Ltd the customers can avail loan or make deposits even in the final working hours.

Teachers Co-Operative Society Ltd. offers interest at lower rate for housing loans. It charges higher rates on loans when compared to commercial banks but the interest charged is applied on a simple rate system instead of compounding the same

The deposits visibly offer higher returns than the commercial banks

The location confinement of Udupi taluk grants a great deal in avoiding competition

Strong, transparent and informed leadership of Mr. Pramod Hegde G.

Presence of experienced staff in every branch

Positive image of the society producing good reputation

Hardly stringent credit facilities

Weakness

This is one other internal factor of Teachers Co-Operative Society Ltd. These are the factors that hold the organization from performing at an optimum level. These are the areas where the business needs to improve to remain competitive. Some weaknesses of the society are as follows:

The location confinement can also be a weakness for cooperative societies. In the sense that, the society cannot extend its membership outside its jurisdiction

The limited rights vested for cooperatives during demonetization severely affected the business of Teachers Co-Operative Society Ltd. The cooperatives were not given the rights to exchange old notes with new ones by the government

The society failed to secure effective number of deposits on account of demonetization. According to the employees at Teachers Co-Operative Society Ltd. the 3 months of demonetization were the most unproductive

Pressure and demand from the members because of promise during the election period

22

Increasing poverty levels and inflation forcing members to seek cheap financial support i.e. perpetual borrowers

As Teachers Co-Operative Society Ltd. employs easy obtaining of loans there are more number of borrowers than savers

Opportunity This is an external factor that an organization can use to give it a competitive advantage. These positive factors are not controlled by the organization. Teachers Co-Operative Society Ltd. has the following opportunities:

Society's injection into local places, rural areas

Ability to gratify the unsatisfied demands from the members/customers

Favorable amendments to the Co-operative Societies Act, rules and bylaws i.e. Open membership, diversity in other products

Advancement and growth in technology and equipping the same in the society

Potential to attract more membership because of its financial stability and good customer service

The convenience in obtaining loan compared to commercial banks

The increased rate of interest on deposits for senior citizens

'Chethana Cash Certificate' a cash certificate of Teachers Co-Operative Society Ltd. is a worthy investment for the middle class people. Threats It is the second negative factor that an organization needs to avoid or overcome with a good proposed strategic plan. In other words, threats hold back the organization from giving its best. The threats for a cooperative society could be from the competitors (commercial banks, town banks, micro finance institutions, cooperative banks and other cooperative societies).

Intervention of tax authorities:

a. The repetitive intervention of income tax departments into the accounts of the society

b. Intervention regarding tax returns on deposits and interest paid to the customers

c. The tax is paid on the interest gained by the head office from all the departments collectively

Threats from new entrants:

a) To engross a realistic scenario, Main branch of Udupi taluk there are an array of 19 banks including cooperative societies and town banks

23

b) A neighboring cooperative society to Teachers Co-Operative Society Ltd. in 'Kundapur' offered higher interest rates on deposits at the time of its establishment in order to get more number of customers and boost the deposits at once

c) In the long run the rates of all the cooperative societies become similar.

Cooperative societies have been a way for money laundering and black money transaction due to lose tax procedures/implementation

Changes in policy and legal framework

Ageing membership

Increasing poverty levels and inflation

24

Chapter 5

Analysis of Financial Statements

Financial statement analysis of Teachers Co-Operative Society Ltd.

Financial statements (or financial report) is a formal record of the financial activities and position of a business, person, or other entity. Relevant financial information is presented in a structured manner and in a form easy to understand. They typically include basic financial statements, accompanied by a management discussion and analysis:

A balance sheet or statement of financial position, reports on a company's assets, liabilities, and owners equity at a given point in time

An income statement or statement of comprehensive income, statement of revenue & expense, P&L or profit and loss report, reports on a company's income, expenses, and profits over a period of time. A profit and loss statement provides information on the operation of the enterprise. These include sales and the various expenses incurred during the stated period Financial statement analysis is the process of reviewing and analyzing a company's financial statements to make better economic decisions.

User of financial statements

1. Creditors In a banking profession the customer who deposits his savings into the bank or society automatically become creditor to the society. Anyone who has lent money to an organization expecting his fair share of return and is interested in the activities of the organization is debtor

2. Investors

Investors are one who closely examine the affairs of an organization so that the organization is

capable to continue issuing dividends. The investors are the members of the society and in Teachers Co-Operative Society Ltd. every customer having an account is a member to the society. The society has been continuously declaring dividends since 1990. Currently the society is paying 15% dividend to their shareholder.

3. Management

The management has to evaluate the performance of the organization. The controller has to prepare an ongoing analysis of company's financial status.

25

4.

Regulatory authorities

Financial statements are vital for the authorities and income tax departments to examine the

various accounting standards and to check the viability of the accounting transactions.

Calculation of Ratios

1. Return on Equity

Return on Equity is the ratio that provides with the insight into how efficiently a company is

managing the equity that shareholders have contributed to the company.

Table 1.6 Return on Equity of Teachers Co-Operative Society Ltd. is calculated as

follows

:

Year

Net income/

Return on Equity

Shareholder’s

Equity*100

2015-16

2,02,99,704.06/3,47,14,200.00

58.47%

2016-17

3,02,88,177.74/3,79,62,405.00

79.78%

Interpretation:

Return on Equity of the financial year 2016-17 (79.78%) is higher than in the previous year

2015-16 (58.47%), which implies that Teachers Co-Operative Society Ltd.'s ability has

increased to generate profit without needing much capital.

2. Return on Assets

Return on assets is a financial ratio which shows the percentage profit a company earns on

relation to its overall resources. Return on assets figures gives investors an idea of how

effectively the company is converting the money it has to invest into net income.

26

Table 1.7 Return on assets of Teachers Co-Operative Society Ltd. is calculated as

follows:

Year

Net income / Total

Return on Assets

Assets*100

2015-16

2,02,99,704.06/2,63,54,55,425.44

0.77%

2016-17

3,02,88,177.74/313,48,61,779.79

0.96%

Interpretation:

Teachers Co-Operative Society Ltd.'s return on assets has increased from 0.77% to 0.96%

indicating that company’s profit has increased when compared to previous year.

3. Proprietary Ratio

The proprietary ratio (is also known as equity ratio) is the proportion of shareholder’s equity

to total assets. If the ratio is high, this indicates that a company has sufficient amount of equity

to support the functions of business. A low ratio indicates that a business may be making use

of too much debt or trade payables, rather than equity. Thus, the equity ratio is a general

indicator of financial stability. To calculate the proprietary ratio, divide the total shareholder’s

equity by total assets.

Table 1.8 Proprietary Ratio of Teachers Co-Operative Society Ltd. is calculated as

follows:

Year

Shareholder's Fund/Total

Proprietary Ratio

assets*100

2015-16

3,47,14,200.00/2,63,54,55,425.44

1.31%

2016-17

3,79,62,405.00/313,48,61,779.79

1.21%

Interpretation:

Teachers Co-Operative Society Ltd.'s proprietary ratio has declined from 1.31% to 1.21%

which shows that there is a need use equity.

4. Solvency Ratio

Solvency Ratio is also called as leverage ratio, measure a company’s ability to sustain

operations indefinitely by comparing debt levels with equity, assets and earnings. In other

27

words, Solvency ratios identify going concern issues and a firm’s ability to pay its bill in the long term. Moreover, the solvency ratio quantifies the size of a company’s after tax income, not counting non-cash depreciation expenses.

Table 1.9 The Solvency Ratio of Teachers Co-Operative Society Ltd. is as follows:

Year

Total assets

Deposits/ external liabilities

Solvency ratio

2015-16

2,63,54,55,425.44

202,78,81,003.17

76.94%

2016-17

313,48,61,779.79

235,47,51,597.16

75.11%

Interpretation:

The solvency ratio of Teachers Co-Operative Society Ltd. for the year 2016 and 2017 shows that the society has good debt paying ability but some progress is needed

5. Net Profit Ratio

The net profit percentage is the ratio of after tax profits to the net sales. It reveals remaining profits after all the cost of production, administration, and financing have been deducted from sales and income taxes recognized. Net Profit ratio of Teachers Co-Operative Society Ltd. is calculated as below:

Year

Net income / Net Sales

Net profit ratio

2015-16

2,02,99,704.06/3,17,857.50

63.86

2016-17

3,02,88,177.74/3,65,419.50

82.88

Comparative Balance Sheet

The Comparative Balance Sheet dependably indicates increment and lessening in the total terms and also rates in different liabilities, assets, capital. A relative accounting report or Comparative Balance Sheet of the two years or two periods give data in regards to advance of the business firm. Comparative Balance Sheet helps in understanding where the organization needs to make improvement. It helps to comprehend why the deviations happens from one financial year to the other. The managers can easily rectify the imprecision.

28

Table 2.0 Comparative Balance Sheet of Teachers Co-Operative Society Ltd.:

 

Assets

31-3-2016()

31-3-2017()

Change ()

% Change

Cash in hand

66,70,555.09

48,22,282.19

-18,48,272.9

-27%

Cash at bank

10,61,56,437.65

12,07,72,022.27

1,46,15,584.62

13.76%

Investments

47,76,26,571.83

65,42,08,237.74

17,65,81,665.91

36.97%

Loans and Advances:

       

i.

Members

1,80,37,64,186.73

203,67,79,146.00

23,30,14,959.27

12.91%

ii.

Staff loan

27,03,950.00

23,74,202.00

-3,29,748.00

-12.19%

Fixed and Current assets

3,62,23,314.96

4,68,14,062.96

10, 590,748.00

29.23%

Other assets

4,91,384.92

20,21,170.15

15,29,785.23

311.32%

Branch Adjustment

20,18,17,932.30

26,70,59,123.52

6,52,41,191.22

32.32%

Closing stock

1,091.96

11,532.96

10,441.00

956.17%

TOTAL ASSETS

2,63,54,55,425.44

313,48,61,779.79

49,94,06,354.35

18.94%

Share capital

3,47,14,200.00

3,79,62,405.00

32,48,205.00

9.35%

Reserve fund

3,00,03,274.35

3,51,55,795.41

51,52,521.06

17.17%

Nominal members

-

-

-

-

Deposit

202,78,81,003.17

235,47,51,597.16

32,68,70,593.99

16.11%

Funds

2,71,09,272.23

3,44,34,448.23

73,25,176.00

27.02%

Other liabilities

3,28,408.00

4,56,967.00

1,28,559.00

39.14%

Provisions

26,64,97,111.96

32,89,20,924.96

6,24,23,813.00

23.42%

Branch Adjustments

20,18,17,932.30

26,70,59,123.52

6,52,41,191.22

32.32%

Dividend

20,56,033.22

24,87,044.62

4,31,011.4

20.96%

Depreciation fund

2,47,30,486.15

2,89,81,551.15

42,51,065.00

17.18%

Rewards

18,000.00

70,000.00

52,000.00

288.88%

Staff Fund

 

- 1,150.00

-

-

Safety deposit

 

- 1,42,92,595.00

-

-

Net profit

2,02,99,704.06

3,02,88,177.74

99,88,473.68

49.20%

TOTAL LIABILITIES

2,63,54,55,425.44

313,48,61,779.79

49,94,06,354.35

18.94%

29

Interpretations from Comparative Balance Sheet of Teachers Co-Operative Society Ltd. between year 2016 and 2017:

1. The cash in hand has decreased by -27% from year 2016 to2017, which says that there is less requirement for cash by the society

2. There has been a 1,46,15,584.62 increase in cash invested in other banks. This figure shows that the society is making good amount of profit and investing it rightly

3. An increase of 36.97% in investment shows the bank is confident about investing its saving and it has achieved the risk taking ability

4. The society has reduced the loans to staff and increase for the members in the year 2016-

17

5. The difference between closing stock (10,441) for 2 years shows the sales are ineffective and more efforts is needed for clearing the stock by the end of the year

6. The deposits have increased by 16.11%. We can say that more funds are flowing into the bank

7. Increase in dividend (20.96%) is a indication that the society is capable of providing returns to its investors/members

8. The profit is increased by almost half than the year 2016. Teachers Cooperative Society is

successful one. It has enough profit to establish more and more of its branches in different places in Udupi.

30

Chapter 6

Learning Experience

Learnings from Teachers Co-Operative Society Ltd.

Teachers is a well developed cooperative society. It has achieved it feat by successfully expanding its branches. Information on how does a banking business work was briefed at 4 out of 8 branches of Teachers Co-Operative Society Ltd. The interaction of employee-customer and interaction between employees themselves was wholesomely dissimilar than what was expected. Communication between them became stronger when the 2 parties conversed in their regional language. Teachers co-operative society ltd. has many customers who are senior citizens, it also has its root deepened into villages. This group of customers can be said as 'Diverse' who are not very well versed about the banking practices. They prefer communicating banking terms in words that they would comprehend.

The internship was helpful in learning the organization structure of the cooperative society regarding:

Who reports to whom?

Who authorizes receipt and cheques?

Who fills in the position of absentees? On 4 weeks study diligent knowledge on how a loan is approved was made known. While approving a loan many things are needed to be reviewed and cross checked. These conditions differ from one person to other and from one type of loan to other.

Some other learning from the internship are:

1. Discipline

All the employees in Teachers co-operative society ltd. are extremely acquainted. They are punctual to work and look presentable. They show no disinterest to the customers in anyways.

2. Mutual understanding

The employees in Teachers Co-Operative Society Ltd. work with mutual understanding and

good relation between themselves. This makes them more effective and efficient in their work because everyone does their share of work which collectively improve the performance of the society

3. Loan, Deposit, Lockers

Many types of loans and deposits were clued-up which has broadened the knowledge of banking. Safe locker facilities are attractive and economical in Teachers Co-Operative Society

31

Ltd. For honoring the cheques, communicating them to head office and receiving an intimation in return regarding the same is necessary.

4. Gold loan in Teachers Co-Operative Society Ltd.

Gold loan is very versatile because it can be obtained easily by pledging the gold ornaments with the society. At Teachers Co-Operative Society Ltd. the gold loan can be approved faster than the personal loans

Gram of gold is valued 15% less than the market value

After devaluing it the gold loan is lent at 75% of the gross value of devalued units

The value of gold is devalued by 15% to compensate any variations i.e. in case the borrower

fails to repay the loan on maturity. Approval of loan at 75% is made only to set aside the amount to be paid as interest on the loan in case of any contingencies. Gold loan is also a risky venture for cooperative societies.

5. Extra mural benefits

Employees in Teachers Co-Operative Society Ltd. enjoy varieties of benefits like Provident funds, health insurances, ESI, GSLI, bonus, festival advances, leave encashment, annual study tour and training camps.

32

Annexure

Trading account of Teachers Co-Operative Society Ltd. for the year 2015-16 and 2016-17 Table 2.1

Particulars

2015-16()

2016-17()

To Opening stock

4,254.87

1,091.96

To Purchases

2,77,078.08

3,28,354.54

To Carriage expenses

10,053.50

10,327.00

To Gross profit (B/F)

41,029.51

48,468.96

Total

3,32,415.96

3,88,242.46

By Sales

3,17,857.50

3,65,419.50

By Sale of gunny bags

12,351.50

10,396.00

By Incidental charges

1,115.00

593.00

By Tax

-

301.00

By Closing stock

1,091.96

11,532.96

Total

3,32,415.96

3,88,242.46

Profit and loss account of Teachers Co-Operative Society Ltd. for the year 2015-16 and

2016-17

Table 2.2

Particulars

2015-16()

2016-17()

To Administrative expenses

1,21,12,896.14

1,79,85,602.18

To Interest on deposit

-

-

To Interest expended

18,59,69,669.00

22,17,79,272.00

To Staff salary

1,69,18,650.00

1,82,62,045.00

To Miscellaneous expenses

-

-

To Depreciation

40,66,142.61

44,21,799.00

To Provisions

5,87,53,295.16

1,52,90,378.00

To Bad debt

-

1,34,01,933.00

To Net profit

2,02,99,704.06

3,02,88,177.74

Total

29,81,20,356.97

32,14,29,206.92

By Trading profit

41,029.51

48,468.96

By Interest earned

29,45,01,328.67

31,69,30,167.91

34

By Rent

-

10,01,625.00

By Other incomes

35,77,998.79

34,48,945.05

Total

29,81,20,356.97

32,14,29,206.92

Balance sheet of Teachers Co-Operative Society Ltd. as at 31-3-2015 to 31-3-2017 Table 2.3

 

Assets

31-3-2015()

31-3-2017()

Cash in hand

66,70,555.09

48,22,282.19

Cash at bank

10,61,56,437.65

12,07,72,022.27

Investments

47,76,26,571.83

65,42,08,237.74

Loans and Advances:

   

i.

Members

1,80,37,64,186.73

203,67,79,146.00

ii.

Staff loan

27,03,950.00

23,74,202.00

Fixed and Current assets

3,62,23,314.96

4,68,14,062.96

Other assets

4,91,384.92

20,21,170.15

Branch Adjustment

20,18,17,932.30

26,70,59,123.52

Closing stock

1,091.96

11,532.96

TOTAL ASSETS

2,63,54,55,425.44

313,48,61,779.79

Share capital

3,47,14,200.00

3,79,62,405.00

Reserve fund

3,00,03,274.35

3,51,55,795.41

Nominal members

-

-

 

Deposit

202,78,81,003.17

235,47,51,597.16

Funds

2,71,09,272.23

3,44,34,448.23

Other liabilities

3,28,408.00

4,56,967.00

Provisions

26,64,97,111.96

32,89,20,924.96

Branch Adjustments

20,18,17,932.30

26,70,59,123.52

Dividend

20,56,033.22

24,87,044.62

Depreciation fund

2,47,30,486.15

2,89,81,551.15

 

Rewards

18,000.00

70,000.00

Staff Fund

 

- 1,150.00

Safety deposit

 

- 1,42,92,595.00

Net profit

2,02,99,704.06

3,02,88,177.74

TOTAL LIABILITIES

2,63,54,55,425.44

313,48,61,779.79

35