DETAILS

CHAPTER I INTRODUCTION AND DESIGN OF THE STUDY

1.1 Introduction 1.2 Statement of the Problem 1.3 Scope of the study 1.4 Objectives of the study 1.5 Types of Data 1.5.1 Primary Data 1.5.2 Secondary Data 1.6 Methodological Design 1.7 Tools of analysis of the study 1.8 Definition of co-operative 1.9 Period of the study 1.10 Geographical Area Covered 1.11 Limitation of the study 1.12 Scheme of Chapterisation

PAGE NO
1-5 1 1 2 2 2 3 3 3 3 3 4 4 4 5 6-13 6 6 7 7 7 10 10 12 13 13 13 13

CHAPTER II

PRIMARY AGRICULTURAL CO-OPERATIVE CREDIT SOCIETY-AN OVERVIEW

2.1 Introduction 2.2 Historical Perspective 2.3 Basic Features of a co-operative Business 2.4 Co-operation 2.5 Co-operative movement in India 2.6 Co-operative movement in Tamilnadu 2.7 Organizational Structure 2.8 Primary Agricultural Co-operative Credit society in Tirunelveli District 2.9 Deposit 2.9.1 Saving Deposit 2.9.2 Fixed Deposit 2.9.3 Recurring Deposit

CHAPTER III

FIANCIAL PERFORMANCE OF 0.1725 VEERAKAERALMPUDUR PRIMARY AGRICULTURAL CO-OPERATIVE CREDIT SOCIETY

3.1 Introduction 3.2 History of 0.1725 V.k.pudur PACCS 3.3 Objectives 0.1725 V.k.pudur PACCS 3.4 Share Capital 3.5 Borrowings 3.6 Loans and Advances 3.6.1 Short Term Loan 3.6.2 Medium Term Loan 3.6.3 Jewel Loan 3.6.4 Loan in Consumer 3.6.5 Loan in Self Help Group 3.7 Interest in Income 3.8 interest in Expenditure 3.9 Profit or Loss

14-18
14 15 15 16 16 16 17 17 17 17 17 18 18 18 49-53 49 50 52 53

CHAPTER IV

SUMMARY OF FINDINGS, SUGGESTION AND CONCLUSIONS

4.1 Introduction 4.2 Findings 4.3 Suggestions 4.4 Conclusion

BIBLIGRAPHY APPENDIX

CHAPTER-I INTRODUCTION AND DESIGN OF THE STUDY

1.1 INTRODUCATION
The word co-operation means living together and working together The co-operative is a form of business organization which is voluntaring organized for poor people. It is a form of organization where in person associate together voluntarility for the furtherance of their economic interest. The co-operative society aim is to venter service only Co-operative is in no way new to India. It has been known and practiced in this country since immemorial co-operative organization is an economic objective. Co-operative in the pursuit of economic objective co-

operatives can contribute of reduction of the disparities of wealth or any rate of preventing of an aggravation of the disparities of wealth. A co-operative

enterprises serve as automatic stabilizers keeping competition in flux co-operative are medium for the transformation are socioeconomic fabric of society and fulfilling the aspirations of the common people.

1.2 STATEMENT OF THE PROBLEM

This serious problem is actually indent field throughout the length the breath of the economy. In such a situation it is clearly noted that the co-operative are playing an important role in bringing about the green and white revolution in the country and there by trying to reduce the economic unless of the country to a

very great extent similar is the case with the dairy 0.1725 veerakeralampudur primary agricultural co-operative credit society in v.k.pudur.
1

1.3 SCOPE OF THE STUDY

The preset research study has been under taken to bring out the overall development of loan producer of co-operative society in v.k.pudur the study in confined only to the co-operative society as it overs. The functions of all the village level the scope of this study is very vary indeed as it covers the many aspects of economical developments the many aspect of economical developments of the local people.

1.4 OBJECTIVES OF THE STUDY

The following are the important objective of the resent study bring out the economic signiticanus primary agricultural co-operative credit society in v.k.pudur To develop the 0.1725 veerakeralampudur primary agriculture cooperative credit society. To study about the financial position of 0.1725 veerakeralampudur primary agricultural co-operative credit society in v.k.pudur To analyses the profit of 0.1725 veerakeralampudur primary agricultural co- operative credit society in v.k.pudur. To offer suitable suggestions in the study area.

1.5 TYPES OF DATA

The data are classified into two types such as

1) Primary data 2) Secondary data

1.5.1 PRIMARY DATA

The Primary data collected through 0.1725 veerakeralampudur primary agricultural co-operative credit society in v.k.pudur.

1.5.2 SECONDARY DATA

Secondary data are those which are already collected by books, newspaper, website etc.

1.6 METHODOLOGICAL DESIGN

The primary data were collected from the secretary of 0.1725 veerakeralampudur primary agricultural co-operative credit society in v.k.pudur branch. The secondary data were collected from the Receipts and payment account, trading account, profit and loss account, balance sheet, and other ledger accounts of the 0.1725 veerakeralampudur primary agricultural co-operative credit society and of various standard book, journals and ports.

1.7 TOOLS OF ANALYSIS OF THE STUDY

Statistical tools were used to analyze and interpret performance of the bank. We used the statistical tools like percentages and various bas dig rams and pie diagrams and analyzing the data.

1.8 DEFINITION OF CO-OPERATIVE

The International Labor Office defines a co-operative as an association of persons, usually of limited means, who have voluntarily joined

together to achieve a common economic and through the formation of a democratically controlled business organization making equitable contribution to the capital required and accepting a fair share of risks and benefits of the undertaking.
3

Professor Paul lambert, a leading authority on co-operation, states, A co-operative society is an enterprise formed and directed by an enterprise formed and directed by an association of users, applying with in itself the rules of democracy and directly intended to serve both its own members and the community as a whole

1.9 PERIOD OF THE STUDY

The present study is conducted agricultural co-operative credit society was from during period of 2010-2011

1.10 GEOGRAPHICAL AREA COVERED

This society covered in v.k pudur surrouraing Kalinga Patti, Raja Gopalabery, Kalaneer kulam, Muthukrishnaperi, Kalluthu, Vellakkal, Rajapandi, Thayar thoppu.

1.11 LIMITATIONS OF THE STUDY

1. This study only the general performance of the bank by taking into account the tools like statistical technique advanced ratio analysis were not used. 2. Some of the statistics were newly formed as the study. Required such type of statistical.

1.12 SCHEME OF CHAPTERISATION

This study has been organized and presented in five chapters. 1. First chapter comprises of introduction and design of study. 2. Second chapter covers with primary agricultural co-operative credit society and overview. 3. Third chapter deals with the financial performance of 0.1725

veerakeralampudur primary agricultural co-operative credit society. It highlights of share capital borrowing loans and advances.
4. Fourth chapter covers the summary of findings suggestions and conclusion.

CHAPTER-II PRIMARY AGRICULTURAL CO-OPERATIVE CREDIT SOCIETY - AN OVERVIEW

2.1 INTRODUCTION
The primary agricultural co-operative credit society are formed by people of a certain area with the object of providing short term financial accommodation to the member and to develop the habit of saving among the member. The funds these society consists of share capital contributed by the member and the deposit received from the public and the members Co-operation as a system emerged in the world to achieve social cohesion and well-knit and self-reliant communities where in the conflict of interest would be most minimum and self-help would be the made effective by mutual help. It one goes through the history of the co-operative movement in the world it will concern if will be revealed that the main concern of the co-operative movement was the community.

2.2 HISTORICAL PERSPECITVE

Co-operative is a form of business organization. Therefore, it owes its origin to poverty and economic distress. Early history of Co-operative movement

throughout the World shows that Co-operative organizations began with consumer Co-operatives. The first Co-operative society known as Rochdale Pioneers was formed by 28 flannel weavers in England in 1843. The various sectors of economic life where Co-operative organizations developed were agricultural credit. Supply of agricultural requisites, farming, agricultural marketing, dairying, industrial production, distribution, consumer Co-operative housing and urban credit etc.

The three tier system with state co-operative bank at district level and primary credit securities at village level were recommended. In such cases, the primary credit societies could be used to provide short, medium and long-term loans.

2.3

BASIC FEATURES OF A CO-OPERATIVE BUSINESS

The Co-operative business has the following features. Co-operative business is basically a non-commercial activity. It is a non-profit enterprise. Members who are the users own co-operative enterprises. Co-operative is organized in response to mutual interest and economic needs. Co-operative emphasizes members control. Co-operative organization is voluntary and the principle of

proportionality.

2.4 CO-OPERATION
Co-operation is the noblest idea if transforms human life from a conflict of classes struggling for opposite interests to a friendly association in the pursuit of the common goal.

2.5 CO-OPERATIVE MOVEMENT IN INDIA

Co-operative movement in our country was started to eradicate the misery and poverty primarily of the rural masses. So importance was given by the Government to organize the Agricultural credit society. While explaining the provisions of the co-operative societies Act of 1904 the Government of India said the present registration is especially designed to assist Agricultural credit which presents a far more important than that of Industrial credit-later some societies were started in towns also by non-agriculturists. As a result of maclagan committee recommendation, numbers of societies begin to grow. The committee numbered the agricultural credit societies as 13,882 against 602 non-agricultural credit societies. The Economic Depression of 1930 severely affected the agricultural credit societies more than the urban credit societies. Their progress had been the case with agricultural credit societies and through the war period witnessed a boom in agricultural prices. The pace of expansion in urban credit was greater than in Agricultural credit which was mainly concerned during the period with recovery from the slump of the thirties. The working capital of non-agricultural credit societies at the end of 1945-1946 amounted to RS. 38.32 cores compared to RS. 25.89 Cores of agricultural credit societies. The country would be celebrating the first centenary of the cooperative movement exactly in the year 2004. During the hundred years cooperative sector continues to occupy an impartment place influencing the people

towards social and economic changes and offers unlimited possibilities of participation economic resurgence. Actually in India, the movement was started (1904) by the British Government for the protection of farmers from the money lenders clutches. It has attained commanding height in various fields such as supply of agricultural credit, production and distribution of customer articles housing, daily and welfare measures to fisherman weaver, laborers, woman and down trodden people etc.

TYPES OF CO-OPERATIVE SOCIETIES IN INDIA

Credit societies

Non Credit Societies

Agricultural Credit Societies

Non Agricultural Credit Societies

Industrial Co-Operatives Processing Societies

Short-term Loan

Long-term Credit

Marketing Societies

State co-operative Banks

State Land Development Bank

Shortage and ware housing Societies

District Co-operative Banks

Primary Land development banks

Daily Co-Operative Societies

Primary Agricultural Co-Operative Bank

Co-Operative consumer Stores

Transport Societies

Educational and Training Institutes

9

2.6 CO-OPERATIVE MOVEMENT IN TAMIL NADU

The First Co-Operative Society in India was started in Tamilnadu. The Triplicate Urban co-Operative Society was established in madras.

2.7 ORGANIZATIONAL STRUCTURE

Organizational is the process at identifying and grouping at activities is an undertaking. Sorting out, different positions and establishing authority. Relationship amount these positions. Study of organization structure is important because it is the structural frame work with in which individuals efforts are Co-operatives and various tasks are performed. The following charts show the organization stricture in Tamilnadu co-operative movement.

10

11

2.8 PRIMARY AGRICULTURAL CO-OPERATIVE BANKING IN TIRUNELVELI DISTRICT

Tirunelveli district is located in the southern part of Tamilnadu. The district Extends over an area of 11433 square kilometers. The district has population at 8.8% when related with the population of Tamilnadu. Agriculture is the main occupation of the people in the district and it amounted 50% textile industry is also found in the district next to agriculture. The important rivers in the district are Thamiraparani, Chitaru, Cadana, Kundararu, Manimuthar etc. The district has 10 taluks. THE FOLLOWING TABLE SHOW THE NUMBER OF PRIMARY

AGRICULTURAL CO-OPERATIVE CREDIT SOCIETY IN TIRUNELVELI DISTRICT.

S.NO 1 2 3 4 5 6 7 8 9 10 NAME OF TALUK NUMBER OF PACBs 13 10 5 18 8 43 22 24 9 19 TOTAL 161

Veerakeralampudur Tenkasi Shencottai Nanguneri Palaymlottai Sankaran Kovil Radhapuram Ambasamudram Tirunelveli Sivagiri

SOURCE: Annual Performance register marches 2009 District Center Co-Operative

credit society Tirunelveli.

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2.9 DEPOSIT
Funds are mobilized through accepting deposit and receiving borrowings are part of working capital at the bank and working capital decides the volume at business. The bank mobilized the Funds mainly through accepting various deposits from members and non-members. These Banks are having three types. The deposit namely, 1. Savings Deposit 2. Fixed Deposit 3. Recurring Deposit

2.9.1 SAVING DEPOSIT

Saving deposit is mainly for the middle class people monthly income earners individual (or) Joint Account opens a savings bank account members and nonmembers at the Co-operative Bank open a saving deposit at Present.

2.9.2 FIXED DEPOSIT

An amount deposited for a specific period is called fixed deposits. Fixed deposits are accepted by primary Agricultural Co-operative bank for a fixed period, at fixed rate of interest agreed upon- Depending upon Period for which they were accepted generally the bank repays amount only after the expiring of the specific rate.

2.9.3 RECURRING DEPOSIT

The period of Recurring deposit is varying from bank to bank. Most of the banks open such accounts for a period of Minimum 60 months (ie) 5 years

13

CHAPTER- III FINANCIAL PERFOMANCE OF 0.1725 VEERAKERALAMPUDUR PRIMARY AGRICULTURAL CO-OPERATIVE CREDIT SOCIETY
3.1 INTRODUCTION
The Co-operative movement was started in India to improve the condition of rural masses. The maclagan committee on co-operation pointed out as early as 1915 that Urban credit societies might serve purposes in training the upper and middle classes to understand ordinary banking principles. The co-operative credit society are formed by people of a certain area with the objective of providing short term financial accommodation to the member and to develop the habit of saving among the member. The funds these societies consists and the deposits received from the public and the members.

There are two primary types of agricultural service cooperatives, supply cooperative and marketing cooperative. Supply cooperatives supply their members with inputs for agricultural production, including seeds, fertilizers, fuel, and machinery services. Marketing cooperatives are established by farmers to undertake transformation, packaging, distribution, and marketing of farm products (both crop and livestock). Farmers also widely rely on credit cooperatives as a source of financing for both working capital and investments.

14

3.2 HISTORY OF 0.1725 VEERAKERALAMPUDUR PRIMARY AGRICULTURAL CO-OPERATIVE CREDIT SOCIETY

0.1725 Veerakeralampudur primary agriculture co-operative society was registered on 01-03-1968 and the bank commenced its operation from 01-091968. It was started with the membership of 21,409 in individual person and 52 in Government. The share capital of RS 21,409 (one rupee per share) in individual person and 52 (one rupee per share) in government.

3.3 OBJECTIVES OF 0.1725

VEERAKERALAMPUDUR AGRICULTURAL

CO-OPERATIVE CREDIT SOCIETY

The 0.1725 Veerakeralampudur primary agricultural co-operative credit society has the Following general and other objectives.

1 .GENERAL OBJECTIVES
Providing loans and advances for agriculture operation, development of fisheries, livestock farming, silk farming, small industries, inputs and implements Marriage medical and funeral expense etc.

2 .OTHER OBJECTIVES
1) Accepting deposits from the public. 2) Purchasing agricultural inputs and implements in bulk and distributing the same to the members. 3) Making necessary arrangement to sell agricultural products and other products produced by the members. 4) Providing warehouse facilities to protect the agricultural material and other materials procured for meeting the requirements of members.

15

3.4 SHARE CAPTIAL

The members and Govt. Contribute society share capital. A Person becomes a member of a bank by buying shares. Every member has to contribute towards the share capital. The liability of the member is limited to the extenD of the face value of the share held by them.

3.5 BORROWINGS
The total borrowings to the bank both by the way of deposits (or) otherwise and whether from members or others must not at any time exceed five time of paid up share capital. The borrowing of funds includes borrowing from the Tirunelveli central co-operative society and national govt. Development Corporation.

3.6 LOANS AND ADVANCES

The co-operative credit institution were established in India with the twin objectives of (a) Providing production loan at concessional rate for the farmers (b) Promoting thrift by mobilizing the surplus which the farmers would get from the production carried out of the loans given by the co-operative societies. This bank provides the following types of loans. Short term loan Medium term loan Jewel loan Loan in Consumer Loan in Self-help group loan
16

3.6.1 SHORT TERM LOAN

Short term loans are granted for period less than a year. It includes a jewel loan, kisan cash credit, and deposit loan.

3.6.2 MEDIUM TERM LOAN

It is granted for a period of more than one year but not exceeding five years. It is also called a s inter mediate credit.

3.6.3 JEWEL LOAN

Jewels and ornaments are considered to be security value on which money can be borrowed. Jewels means the name given to ornaments of metals, stones, (or) synthetic materials as the person for sake of ornaments for magical production or as a symbol of rank, wealth or prestige.

3.6.4 LOAN IN CONSUMER

The members can get loan from the society for the purpose of buying the goods such as radio, television, washing machine, by-cycle, motorcar and the like. It is also one of the short-term loans.

3.6.5 LOAN IN SELF HELP GROUP

These loans should be given to the women to involved in the self-help group. The interest rate for this loan 12% these loans should be given by the society after 6 months when the work started.

17

3.7 INTEREST IN INCOME

Interest income is the amount interest received from the loan and advance offered to members and non-members. Higher the interest received shows higher the financial soundness of the society.

3.8 INTEREST IN EXPENDITURE

Interest Expenditure is the total amount of interest paid by the bank to the deposit holders and central co-operative society for the amount borrowed from the central co-operative society outstanding. Any increase in the interest shows the increase in expenditure of the society

3.9 PROFIT OR LOSS

Profitability is the indications of efficiency or in efficiency with which the operations of the society are carried on. Net profit is the excess of income over all administrative, selling and distribution and other related expenses.

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LOAN ISSUED BY 0.1725 VEERKERALAMPUDU PRIMARY AGRICULTURAL CO-OPERATIVE CREDIT SOCIETY

Loans issued comprise of members loans, Jewel loans, Agricultural loans, Deposit loan, Staff loan share Capital repayable on demand and term loans. The total loans issued made by the 0.1725 Veerakeralampudur primary Agricultural cooperative credit society during the period of past five year 2005-06 to 2009-10 had been collected.

TABLE 3.1

LOANS ISSUED Year 2005-06 2006-07 2007-08 2008-09 2009-10 Loan issued (Rs in Lakhs) 82.77 59.42 84.26 112.96 118.89 Increase or decrease ---23.35 24.84 28.70 5.93 Trend Percentage 100% 71.79% 101.8% 136.47% 143.64%

Source :Computed from the records of the 0.1725 Veerakeralampudur primary

Agricultural co-operative credit society for 2005-06 to 2009-10. The above table reveals that in the year 2005-2006 the loan issued by credit society of Rs 82.77 Lakhs(100%), 2006-2007 loans issued of Rs 59.42 Lakhs (71.79%) year 2007-08 loans issued of Rs 84.26 lakhs (101.80%) and year 2008-09 loans issued of Rs 112.96 lakhs (136.47%) and year 2009-10 loans issued of Rs 118.89 lakhs (143.64%). The Loan issued for the 0.1725 v.k.pudur Primary Agricultural co-operative credit societies are depicted in the following figure 3.1

19

Figure 3.1 Loan Issued

140 120 100 80 60 40 20 0 -20 -40 2005-06 2006-07 2007-08 2008-09 2009-10 Loan issued (Rs in Lakhs) Increase or decrease

20

LOAB RECEIVED BY 0.1725 V.K.PUDUR PACCS

Loans Received from the Members Loans, Jewel loans, Agricultural Loans women mentor Loans, member share capital loans, Deposit loans, staff loans repayable on demand and term loans. The total loans received made by the 0.1725 Veerakeralampudur primary Agricultural co-operative credit society during the period of past five year 2005-06to 2009-10 had been collected.

TABLE 3.2 LOAN RECEIVED

Year 2005-06 2006-07 2007-08 2008-09 2009-10 Loan received (Rs in Lakhs) 75.06 65.27 95.52 90.96 101.28 Increase or decrease ---9.79 30.25 -4.56 10.32 Trend Percentage 100% 86.96% 127.25% 121.18% 134.98%

Source: Computed from the records of the 0.1725 Veerakeralampudur primary

Agricultural co-operative credit society for 2005-06 to 2009-10. The above table reveals that in the year 2005-06 the loan received in credit society of Rs 75.06 lakhs (100%), 2006-07 the loan received of Rs 65.27 lakhs (86.96%), 2007-08 the al loan received of Rs 95.52 lakhs (127.25%), 2008-09 the loan received of Rs 90.96 lakhs (121.18%) and 2009-10 the loan received of Rs 101.28 lakhs (134.98%). The Loan Received for the 0.1725 v.k.pudur Primary Agricultural co-operative credit society are depicted in the following figure 3.2

21

FIGURE 3.2 LOAN RECEIVED

120 95.52 100 75.06 80 60 40 20 0 2005-06 2006-07 2007-08 2008-09 Lakhs) 65.27 90.96

101.28

2009-10

Loan received (Rs in

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GROSS PROFIT BY 0.1725 V.K.PUDUR PACCS

Trading Account into account the cost of goods sold during the period on the one hand and on the other, the value of goods sold. It the sale value is higher than the cost of goods sold the difference is the gross profit and in the cost of goods sold value is higher than the sales the difference is the gross loss. The total gross profit or less made by the 0.1725 Veerakeralampudur primary Agricultural co-operative credit society during the period of the past five years from 2005-06 to 2009-10 had been collected.

TABLE 3.3 GORSS PROFIT

Year 2005-06 2006-07 2007-08 2008-09 2009-10 TOTAL Gross profit (Rs in Thousand) 81.21 127.22 188.71 106.71 83.81 1274.07 Percentage 13.82% 21.65% 32.12% 18.14% 14.27% 100%

Source: Computed from the records of the 0.1725 Veerakeralampudur primary Agricultural co-operative credit society for 2005-06 to 2009-10. The above table reveals that in the year 2005-06 the gross profit of credit society of Rs 81-21 thousand (13.82%), 2006-07 the gross profit of Rs 127-22 thousand (21.65%), 2007-08 the gross profit Rs 188-71 thousand (32.12%), 2008-09 the gross profit Rs 106.56 thousand (18.14%) and 2009-10 the gross profit Rs 8381 thousand (14.27%). The Gross profit for the 0.1725 v.k.pudur Primary Agricultural co-operative credit society are depicted in the following figure 3.3

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FIGURE 3.3 GORSS PROFIT

Gross profit (Rs in Thousand) 188.71 Percentage

127.22 106.71 81.21 83.81

13.82% 2005-06

21.65% 2006-07

32.12% 2007-08

18.14% 2008-09

14.27% 2009-10

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NET PROFIT OR LOSS BY 0.1725 V.K.PUDUR PACCS

The gross profit or loss which is a profit or loss made on purchasing selling the goods. All the expenses are charged only of the profit and loss account. If the business earns other income is non- operating incomes or gain and incur nonoperating expenses or loss. Net Profit or Loss = Gross profit or loss all other incomes and gains all other expenses and loss. The net profit or loss made by the 0.1725 Veerakeralampudur primary Agricultural co-operative credit society during the period of the past five years from 2005-06 to 2009-10 had been collected.

TABLE 3.4 NET PROFIT OR LOSS

Year Net Profit (Rs in Thousand) 2005-06 2006-07 2007-08 2008-09 2009-10 Total 51.56 -359.79 1854.45 -241.16 -30.99 1274.07 4.05% 28.24% 145.55% -18.93% -2.43% 100% Percentage

Source: Computed from the records of the 0.1725 Veerakeralampudur primary

Agricultural co-operative credit society for 2005-06 to 2009-10. The above table reveals that in the year 2005-06 the net profit of the credit society of Rs 51.56 thousand (4.05%), 2006-07 the net loss of Rs-359.79 thousand (-28.24%), 2007-08 the earned (145.55) net profit Rs 1854.45 thousand (145.55%), 2008-09 the net loss of Rs-241.16 thousand (-18.93), and 2009-10 the net loss of Rs-30.99 thousand (-2.43). The Net Profit or Loss for the 0.1725 v.k.pudur Primary Agricultural co-operative credit society are depicted in the following figure 3.4

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FIGURE 3.4 NET PROFIT OR LOSS

Net Profit (Rs in Thousand)

2000 1500 1000 500 0 2005-06 -500 2006-07 2007-08 2008-09 2009-10 2005-06 2006-07 2007-08 2008-09 2009-10

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CASH IN BALANCE SHEET BY 0.1725 V.K.PUDUR PACCS

The cash is very important of the own Business and life. The Total cash in Balance sheet of the cash in hand and bank deposit amount of the total cash. The total cash in Balance sheet the made 0.1725 Veerakeralampudur primary Agricultural co-operative credit society during the period of the past five years from 2005-06 to 2009-10 had been collected.

TABLE 3.5 CASH

Year 2005-06 2006-07 2007-08 2008-09 2009-10 Total Cash (Rs in Lakhs) 0.50 3.14 1.53 2.88 6.48 14.53 Percentage 3.44% 21.61% 10.53% 19.82% 44.60% 100%

Source: Computed from the records of the 0.1725 Veerakeralampudur primary

Agricultural co-operative credit society for 2005-06 to 2009-10. The above table reveals that in the year 2005-06 the total cash of the credit society Rs 0.50 lakhs (3.44%), 2006-07 the earned total cash of Rs 3.14 lakhs (21.61% , 2007-08 the earned total cash of Rs 1.53 lakhs (10.53%), 2008-09 the earned total cash of Rs 2.88 lakhs (19.82%) and 2009-10 the earned total cash of Rs 6.48 lakhs (44.60%). The Cash in balance sheet for the 0.1725 v.k.pudur Primary Agricultural cooperative credit society are depicted in the following figure 3.5

27

FIGURE 3.5 CASH

100% 44.60% 19.82% 10.53% 1.53 21.61% 3.44% 0.5 0 2 4 6 8 10 12 14 16 3.14 2.88 6.48

Total 2009-10 2008-09 2007-08 2006-07 2005-06

14.53

Percentage

Cash (Rs in Lakhs)

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TOTAL INVESTMENT BY 0.1725 V.K.PUDUR PACCS

It a business house held a large number of Investments in various securities. The credit Societies in investment of the share in co-operative Institution, Investment with TCC Bank, and other investment. The total investment made by the 0.1725 Veerakeralampudur primary Agricultural co-operative credit society during the period of the past five years from 2004-05 to 2009-10 had been collected.

TABLE 3.6 TOTAL INVESTMENT

Year Total Investment (Rs in lakhs) 2005-06 2006-07 2007-08 2008-09 2009-10 10.46 10.51 11.17 11.68 12.36 --0.05 0.66 0.51 0.68 100% 100.48% 106.79% 111.66% 118.16% Increase or Decrease Trend Percentage

Source: Computed from the records of the 0.1725 Veerakeralampudur primary

Agricultural co-operative credit society for 2005-06 to 2009-10. The above table reveals that in the year 2005-06 the total investment in credit society of Rs 10.46 lakhs (100%), 2006-07 total investment of Rs 10.51 lakhs (100.48%), 2007-08 the total investment of Rs 11.17 lakhs (106.79%), 2008-09 total investment of Rs 11.68 lakhs (111.66%) and 2009-10 the total investment of Rs 12.36 lakhs (118.16%). The Total Investment for the 0.1725 v.k.pudur Primary Agricultural co-operative credit society are depicted in the following figure 3.6

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FIGURE 3.6 TOTAL INVESTMENT

14 12 10 8 6 4 2 0.05 0 2005-06 2006-07 2007-08 2008-09 0.66 0.51 10.46 10.51 11.17 11.68

12.36

0.68 2009-10

Total Investment (Rs in lakhs)

Increase or Decrease

30

TOTAL LOAN BY 0.1725 V.K.PUDUR PACCS

The loans with providing production loans at concessional rate for the farmer. The loans are useful of farmer and businessman. The loans comprise of the members loans. Jewel loans, Deposit loan fixed Deposit, Member Agricultural loans, staff loans. The total loans made by the 0.1725 Veerakeralampudur primary Agricultural co-operative credit society during the period of the past five years from 2006-06 to 2009-10 had been collected.

Table 3.7 Total Loans

Year 2005-06 2006-07 2007-08 2008-09 2009-10 Total loans (Rs in lakhs) 68.98 63.14 52.96 72.87 92.48 Increase or Decrease --5.84 -10.18 20.91 13.61 Trend Percentage 100% 91.53% 76.77% 114.33% 134.06%

Source: Computed from the records of the 0.1725 Veerakeralampudur primary

Agricultural co-operative credit society for 2005-06 to 2009-10. The above table reveals that in the year 2005-06 the total loan amount by credit society of Rs 68.98 lakhs (100%), 2006-07 the total Loans of Rs 63.14lakhs (17.71%), 2007-08 the total Loans of Rs 52.96 lakhs (91.53%), 2008-09 the total Loans of Rs 72.87 lakhs (114.33%) and 2009-10 the total Loans of Rs 92.48 lakhs (134.06%) . The Total Loans for the 0.1725 v.k.pudur Primary Agricultural co-operative credit society are depicted in the following figure 3.7

31

FIGURE 3.7 TOTAL LOANS

100 80 60 40 20.91 20 0 2005-06 -20 2006-07 -5.84 2007-08 -10.18 2008-09 68.98 72.87 63.14 52.96

92.48

13.61

2009-10

Total loans (Rs in lakhs)

Increase or Decreases

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FIXED ASSETS BY 0.1725 V.K.PUDUR PACCS

Fixed assets are the properties acquired for permanent use in the business. The Business earns its revenue by making use of these fixed assets. Value of Godown, furniture, library books strong room door etc. The fixed assets made by the 0.1725 Veerakeralampudur primary Agricultural co-operative credit society during the period of the past five years from 2005-06 to 2009-10 had been collected.

TABLE: 3.8 FIXED ASSETS

Year Fixed Assets (Rs in Increase or lakhs) 2005-06 2006-07 2007-08 2008-09 2009-10 3.19 3.29 3.29 3.32 3.35 Decrease --0.10 --0.03 3.35 Trend Percentage 100% 103.13% 103.13% 104.07% 105%

Source: Computed from the records of the 0.1725 Veerakeralampudur primary

Agricultural co-operative credit society for 2005-06 to 2009-10. The above table reveals that in the year 2005-06 the total fixed assets of credit society of Rs 3.19 lakhs (19.40%), 2006-07 total value of fixed assets of Rs 3.29 lakhs (20.01%),2007-08 the total value of fixed assets of Rs 3.29 lakhs (20.01%), 2008-09 the total value of fixed assets of Rs 3.32 lakhs (20.20%) and 2009-10 the total value of fixed assets of Rs 3.35 lakhs (20.38%). The Fixed Assets for the 0.1725 v.k.pudur Primary Agricultural co-operative credit society are depicted in the following figure 3.8

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FIGURE 3.8 FIXED ASSETS

Fixed Assets (Rs in lakhs) 3.19 3.29 3.29

Increase or Decreases 3.32 3.353.35

0.1 2005-06 2006-07 2007-08

0.03 2008-09 2009-10

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PENDING REALISAION BY 0.1725 V.K.PUDUR PACCS

The total Pending Realisation comprise of the Interest accrued, Interest overdue Misc. Income accrued, Govt. prepaid dividend, Interest on closed loan, Trade Income due. The total Pending Realisation made by of the 0.1725 Veerakeralampudur primary Agricultural co-operative credit society during the period of the past five years from 2005-06 to 2009-10 had been collected.

TABLE: 3.9 PENDING REALISAION

Year Pending Increase or Trend Realisation (Rs in Decrease Percentage lakhs) 7.07 -100% 7.59 0.52 107.35% 2.00 -5.59 28.28% 3.68 1.68 52.03% 5.96 2.28 84.30% from the records of the 0.1725 Veerakeralampudur primary

2005-06 2006-07 2007-08 2008-09 2009-10 Source: Computed

Agricultural co-operative credit society for 2005-06 to 2009-10. The above table reveals that in the year 2005-06 the total Pending Realisation in of credit society Rs 7.07 lakhs (100%), 2006-07 the total Pending Realisation of Rs 7.59 lakhs (107.35%), 2007-08 the total Pending Realisation of Rs 2.00 lakhs (28.28%), 2008-09 the total Pending Realisation of Rs 3.68 lakhs (52.03%) and 2009-10 the total Pending Realisation of Rs 5.96 lakhs (84.30%). The Pending Realisation for the 0.1725 v.k.pudur Primary Agricultural co-operative credit society are depicted in the following figure 3.9

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FIGURE 3.9 PENDING REALISATION

10 5 0 -5 -10 Pending Realisation (Rs in lakhs) Increase or Decreases

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SUNDRY DEBTORS BY 0.1725 V.K.PUDUR PACCS

The person who are at present in debt to it .Might refer to a companys customers who rarely make purchases on credit and the amount. The account are kept in a sundry debtors. The sundry debtor made by the 0.1725 Veerakeralampudur primary Agricultural co-operative credit society during the period of the past five years from 2005-06 to 2009-10 had been collected.

TABLE 3.10 SUNDRY DEBTORS

Sundry Debtors Percentage (Rs in Lakhs) 2005-06 3.49 2.66% 2006-07 9.63 7.33% 2007-08 40.99 31.21% 2008-09 50.86 38.73% 2009-10 26.36 20.07% Total 131.33 100% Source: Computed from the records of the 0.1725 Veerakeralampudur primary Agricultural co-operative credit society for 2005-06 to 2009-10. The above table reveals that in the year 2005-06 the Sundry Debtor in Credit Society of Rs 3.49 lakhs (2.66%), 2006-07 the Sundry Debtor of Rs 9.63 lakhs (7.33%), 2007-08 the Sundry Debtor of Rs 40.99 lakhs (31.21%), 2008-09 the Sundry Debtor of Rs 50.86 lakhs (38.73%) and 2009-10 the Sundry Debtor of Rs 26.36 lakhs (20.07%). The Sundry Debtors for the 0.1725 v.k.pudur Primary Agricultural cooperative credit society are depicted in the following figure 3.10 Year

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FIGURE 3.10 SUNDRY DEBTORS

Percentage Sundry Debtors (Rs in Lakhs)

Total 2009-10 2008-09 2007-08 2006-07 2005-06

100% 20.07% 38.73% 31.21% 7.33% 9.63 2.66% 3.49 26.36 50.86 40.99

131.33

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DEPOSITS AND BORROWINGS BY 0.1725 V.K.PUDUR PACCS

The total deposits and Borrowings to the credit society both by the way of deposit or otherwise and whether from members or other must not at any time exceed five time of paid up share capital. The total deposit and Borrowing mad by of the 0.1725 Veerakeralampudur primary Agricultural co-operative credit society during the period of the past five years from 2005-06 to 2009-10 had been collected.

TABLE 3.11 DEPOSITS AND BORROWINGS

Year Deposits and Borrowings Realisation( Rs in lakhs) 65.34 72.43 81.12 105.32 116.02 Increase or Decrease Trend Percentage

2005-06 2006-07 2007-08 2008-09 2009-10

--7.09 8.69 24.20 10.70

100% 110.85% 124.15% 161.18% 177.56%

Source: Computed from the records of the 0.1725 Veerakeralampudur primary

Agricultural co-operative credit society for 2005-06 to 2009-10. The above table reveals that in the year 2005-06 the total Deposits and Borrowings in credit society of Rs 65.34 lakhs (100%), 2006-07 the total Deposits and Borrowings of Rs 72.43 lakhs (110.85%), 2007-08 the total Deposits and Borrowings of Rs 81.12 lakhs (124.15%), 2008-09 the total Deposits and Borrowings of Rs 105.32 lakhs (161.18%) and 2009-10 the total Deposits and Borrowings of Rs 116.02 lakhs (177.56%) . The Deposits and Borrowing for the 0.1725 v.k.pudur Primary Agricultural co-operative credit society are depicted in the following figure 3.11
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FIGURE 3.11 DEPOSITS AND BORROWING

116.02 120 100 80 60 40 20 0 2005-06 2006-07 2007-08 2008-09 2009-10 7.09 8.69 24.2 10.7 65.34 72.43 81.12 105.32

Deposits and Borrowings Realisation( Rs in lakhs)

Increase or Decrease

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SHARE CAPTIAL BY 0.1725 V.K.PUDUR PACCS

The member and Government contribute society share capital. A Person becomes a member of a bank by buying shares. Every member has to contribute towards the share capital. The total share capital mad by of the 0.1725 Veerakeralampudur primary Agricultural co-operative credit society during the period of the past five years from 2005-06 to 2009-10 had been collected.

TABLE 3.12 SHARE CAPITAL

share capital (Rs Percentage in Lakhs) 2005-06 3.91 8.46% 2006-07 4.08 8.83% 2007-08 8.74 18.91% 2008-09 18.07 39.11% 2009-10 11.41 24.69% Total 46.21 100% Source: Computed from the records of the 0.1725 Veerakeralampudur primary Agricultural co-operative credit society for 2005-06 to 2009-10. The above table reveals that in the year 2005-06 the share capital in credit society of Rs 3.91 lakhs (8.46%), 2006-07 the share capital in credit society of Rs 4.08 lakhs (8.83%), 2007-08 the share capital in credit of Rs 8.74 lakhs (18.91%), 2008-09 the share capital in credit of Rs 18.07 lakhs (39.11%) and 2009-10 the share capital in credit of Rs 11.41 lakhs (24.69%). The Share capital for the 0.1725 v.k.pudur Primary Agricultural co-operative credit society are depicted in the following figure 3.12 Year

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FIGURE 3.12 SHARE CAPTIAL

20 18 Share captial (Rs in Lakhs) 16 14 12 10 8 6 4 2 0 2005-06 2006-07 2007-08 Year 2008-09 2009-10

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PAYMENT IN PENDING BY 0.1725 V.K.PUDUR PACCS

The total payment in pending is comprise of the Interest due, Estt. & contingencies due, sales tax due supervision fees, Trade charges due. The total payment in pending made by of the 0.1725 Veerakeralampudur primary Agricultural co-operative credit society during the period of the past five years from 2005-06 to 2009-10 had been collected.

TABLE: 3.13 PAYMENT IN PENDING

Year Payment in Pending Increase or (Rs in lakhs) 2005-06 2006-07 2007-08 2008-09 2009-10 6.15 1.56 1.96 4.04 3.01 Decrease ---4.59 0.40 2.08 -1.03 Trend Percentage 100% 25.36% 31.86% 65.69% 48.94%

Source: Computed from the records of the 0.1725 Veerakeralampudur primary

Agricultural co-operative credit society for 2005-06 to 2009-10. The above table reveals that in the year 2005-06 the total Payment in Pending of Credit society of 6.15 lakhs (100%), 2006-07 the Payment in Pending of Rs 1.56 lakhs (25.36%), 2007-08 the Payment in Pending of Rs 1.96 lakhs (31.86%), 2008-09 the Payment in Pending of Rs 4.04 lakhs (65.69%) and 2009-10 the Pending in Payment of Rs 3.01 lakhs (48.94%). The Payment in Pending the 0.1725 v.k.pudur Primary Agricultural cooperative credit society is depicted in the following figure 3.13

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FIGURE 3.13 PAYMENT IN PENDING

8 6 4 2 0 2005-06 2006-07 2007-08 2008-09 2009-10 -2 -4 -6 Payment in Pending (Rs in lakhs) Increase or Decrease

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SUNDRY CREDITORS BY 0.1725 V.K.PUDUR PACCS

Sundry creditors want to know the financial position of the concern in which they have invested their money. The depend only on proper accounts. Miscellaneous small infrequent suppliers that are not assigned individual ledger account but are classified as a group. The sundry creditors made by of the 0.1725 Veerakeralampudur primary Agricultural co-operative credit society during the period of the past five years from 2005-06 to 2009-10 had been collected.

TABLE: 3.14 SUNDRY CREDITORS

Year 2005-06 2006-07 2007-08 2008-09 2009-10 Sundry Creditors (Rs in lakhs) 7.24 6.34 6.48 6.63 9.47 Increase or Decrease --0.90 0.14 0.15 2.84 Trend Percentage 100% 87.56% 89.50% 91.57% 130.8%

Source: Computed from the records of the 0.1725 Veerakeralampudur primary

Agricultural co-operative credit society for 2005-06 to 2009-10. The above table reveals that in the year 2005-06 the Sundry creditor in credit society of Rs 7.27 lakhs (100%), 2006-07 the Sundry creditor of Rs 6.34 lakhs (87.56%), 2007-08 the Sundry creditor of Rs 6.48 lakhs (89.50%), 2008-09 the Sundry creditor of Rs 6.63 lakhs (91.57%), and 2009-10 the Sundry creditor of Rs 9.47lakhs (130.8%) . The Sundry creditor or the 0.1725 v.k.pudur Primary Agricultural cooperative credit society are depicted in the following figure 3.14

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FIGURE 3.14 SUNDRY CREDITORS

10 9 8 7 6 5 4 3 2 1 0

sundry creditors( Rs in lakhs)

Sundry Creditors (Rs in lakhs)

Year

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DEBTS RESERVE AND RISK FUND BY 0.1725 V.K.PUDUR PACCS

Bad Debts represent those debts which have become definitely. Bad debts and risk fund is an actual has on the Business and as the amount is irrecoverable by written off from account of debtors. The Bad Debts Reserve and Risk fund made by of the 0.1725 Veerakeralampudur primary Agricultural co-operative credit society during the period of the past five years from 2005-06 to 2009-10 had been collected.

TABLE 3.15 DEBTS RESERVE AND RISK FUND

Year Debts reserve and Risk Fund (Rs in lakhs)
0.98 0.98 0.99 1.39 1.70

Increase or Decrease
----0.01 0.40 0.31

Trend Percentage
100% 100% 101% 141.85% 173.46%

2005-06 2006-07 2007-08 2008-09 2009-10

Source: Computed from the records of the Computed from the records of the
0.1725 Veerakeralampudur primary Agricultural co-operative credit society for 2005-06 to 2009-10. The above table reveals that in the year 2005-06 the Debts Reserve and Risk in Credit Society of 0.98 lakhs (100%), 2006-07 the Debts Reserve and Risk Fund of Rs 0.98 lakhs (100%), 2007-08 the Debts Reserve and Risk Fund of Rs 0.99 lakhs (101%, 2008-09 the Debts Reserve and Risk Fund of Rs 1.39 lakhs (141.85%) and 2009-10 the Debts Reserve and Risk Fund of Rs 1.70 lakhs (173.46%). The Debts Reserve and Risk Fund or the 0.1725 v.k.pudur Primary Agricultural co-operative credit society are depicted in the following figure 3.15
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FIGURE 3.15 DEBTS RESERVE AND RISK FUND

1.8 1.6 1.4 1.2 1 0.8 0.6 0.4 0.2 0 2005-06 2006-07 2007-08 2008-09 2009-10 Debts reserve and Risk Fund (Rs in lakhs) Increase or Decrease

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CHAPTER- IV SUMMARY OF FINDINGS AND SUGGESTIONS AND

CONCLUSION
4.1 INTRODUCTION
This study is an attempt to evaluate the financial appraisal 0.1725 Veerakeralampudur primary Agricultural co-operative credit society. The study beings with an overview of co-operative society. It deals with the history of cooperative banking in India, Tamilnadu and Tirunelveli district. It measures particularly the growth and working of the credit societies.

The various types of deposits mobilize and types of loans granted by the credit society. The financial position and performance of the credit society have been studied is detail. The approach to the study is both descriptive and analytical summary of findings problems and suggestions for improvement of the credit society are presented in this chapter. 0.1725 Veerakeralampudur primary Agricultural co-operative credit society was registered on 01-03-1968 and the commenced its operation from 01-09-1968 onwards. It is in situated in v.k.pudur. The main object of the credit society was rending loans and advance to members and non- member. Societies have three type of deposit namely saving deposits, recurring deposits, fixed deposits.

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This society provides the following loans, short term loans, medium term loans, jewel loans member loans, agricultural jewel loans, self-help group loans. Medium term loans are granted for period of more than one years but not exceeding five years. The member and government contribute the credit society in share capital.

4.2 FINDINGS

 It is clear that the amount of loan issued made by the credit society has been increased from Rs 82.77 lakhs (2005-06) to Rs118.89 lakhs (2009-10) It is revealed from that the amount of loans received made by the credit society has been increased from RS 75.06 lakhs(2005-06)to Rs 101.28 lakhs(2009-10) It is interned that the credit society earned gross profit increased in the year 2007-08 amounted to Rs 188.71 thousand. It is clear that the credit society earned net profit increased in the year 2007-08 amounted to RS 1854.45 thousand. It is noted that the amount of cash in balance sheet made by the credit society had been increased from in the year Rs 0.50 lakhs (2005-06) to Rs 6.48 lakhs (2009-10). It is revealed that the amount of total investment made by the credit society has been increased form Rs 10.46 lakhs (2005-06) to Rs 12.36 Lakhs (2009-10). It is inferred that the credit society in total loan in the lowest amount of Rs 52.96 lakhs (2007-08). It is clear that the credit society in total value fixed assets increases in the year 2009-10 amounted Rs 3.35 lakhs.

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An analysis regaling the credit society in total pending Realisation in the lowest amount of Rs 2 lakhs (2007-08). It is found that above table that the amount of sundry debtors made by the credit society has been increased from Rs 50.86 lakhs 50.89% (200809). It is inferred that the credit society in total deposit and borrowing made by the credit society has been increased from Rs116.02 lakhs (2009-10).

 It is clear that the credit society in total share capital increased in the year 2008-09 amount of Rs 18.07 lakhs (39.11%). It is revealed that above table that the amount of total pending made by the credit society has been increased from Rs 6.15 lakhs (2005-06). It is inferred that the credit society in sundry creditor increased in the year 2009-10 amount Rs 9.47 lakhs. It is noted that the credit society in debts reserve and risk fund increase in the year 2009-10 amount of Rs 1.70 lakhs.

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5.3 SUGGESTIONS
Based on the study the researcher has suggested the following recommender for the impartment of Agricultural co-operative credit society in the study area. The Primary Agricultural co-operative credit society in the mainly help of the farmer individual persons and other.

 The Primary Agricultural co-operative credit society freely performing the function. The credit society officials should see that the amount of loan is used for the purpose for which loan is obtained. Jewel loan interest is not paid. The area of operation of the Primary Agricultural co-operative credit society should be expanded. Number of installment may be increased as these are frequent crop failure. Proper notice should be given for the collection of interest with in the stipulated time. The systems followed by this credit society should be modernized. The repaying capacity of the borrowing should be ascertained before granting loans. The state government should compensate this bank in respect of the loans waivers. Better the Primary Agricultural co-operative credit society is provide credit card facilities.

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CONCLUSION
The Financial Performance of 0.1725 Veerakeralampudur Primary Agricultural co-operative credit society have been analyzed and which have to be managed efficiently. The above suggestion are implemented by the authorities concerned, the credit society would be able to keep peace with other developmental banking systems. Findings of the study will enable the officials of

the sector to formulate the policies for the betterment of co-operative credit society.

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