INTERNSHIP REPORT ON

ORGANISATION STUDY OF ATHMASHAKTHI MULTIPURPOSE

CO-OPERATIVE SOCIETY Ltd.

BY

PRANESH KUMAR

USN 4SH17MBA55

Submitted to:

SHREE DEVI INSTITUTE OF TECHNOLOGY KENJAR

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

MASTER OF BUSINESS ADMINISTRATION

UNDER THE VALUABLE GUIDANCE OF

INTERNAL GUIDE EXTERNAL GUIDE

VENKATESH AMIN Mr. SURESH. K

HOD, Dept. Of MBA CEO

ATHMASHAKTHI
SDIT COLLEGE,KENJAR
MULIPURPOSE CO-
OPERATIVE SOCIETY Ltd.

Department of MBA

SHREE DEVI INSTITUTE OF TECHNOLOGY

KENJAR, MANGALORE

(2016-2018)
 Shree Devi Institute of Technology
(Affiliated to Visvesvaraya Technological University & Recognized by AICTE)

AIRPORT ROAD, KENJAR, MANGALORE -574142

PHONE: 0824-2254104, website: www.sdc.ac.in

Ref…………… Date…………….

CERTIFICATE

This is to certify that Mr. PRANESH KUMAR bearing USN 4SH17MBA55 is a bonafide
student of Master of Business Administration course of the Institute 2017-2019 batch,
affiliated to Visvesvaraya Technological University, Belgaum. Internship report on “A
Organization Study of Athmashakthi Multipurpose Co-operative Society Ltd.” is
prepared by him under the guidance of Prof. A.S Venkatesh in partial fulfillment of the
award of the degree of Master of Business Administration of Visvesvaraya Technological
University, Belgaum Karnataka.

Prof.A.S. Venkatesh Prof.A.S. Venkatesh Dr.Dilip Kumar.K

MBA, MBA, B.E, M.Tech, Ph.D
(Signature of Internal Guide) (Signature of HOD ) (Signature of
Principal)

Internal viva

Name of the examiner Signature with Date

1.

2.
 ACKNOWLEDGEMENT

It gives me a great pleasure to express my gratitude for all the people who helped me directly
or indirectly.

I would like to thank each and every one who offered support, guidelines and help whenever
required.

First and foremost I would like to express gratitude to Prof. A.S. Venkatesh, HOD of MBA
Department , SDIT Kenjar.

I would like to thankful to our respected principal Dr.Dilip Kumar for his support and
encouragement .

I extremely thankful to my external guide Mr. P NAGARAJA BHAT, MANAGER,

ATHMASHAKTHI MULTIPURPOSE CO-OPERATIVE SOCIETY LTD. For his valuable
suggestions and guidance encouragement during the preparation of this project.

And I also thankful to all the staffs of MBA department for their wonderful support.
 DECLARATION

I hereby declare that project report on ATHMASHAKTHI MULTIPURPOSE

CO-OPERATIVE SOCIETY LTD. submitted to Department of Business
Administration (MBA) of Shree Devi Institute of Technology, Kenjar is
based on primary & secondary data found by me in various departments, books,
magazines and websites & collected by main under the guidance of Mr. P.
Nagaraja Bhat

I also declare that this internship work is towards the partial fulfilment of the
university regulation.

PLACE:KENJAR PRANESH KUMAR

DATE: MBA(3rd semester)

BATCH (2017-19)

USN NO.: 4SH17MBA55

 TABLE OF CONTENT

SL NO CHAPTER PAGE NO

1 Executive summary 1

2 Chapter 1: Introduction about the internship, 2 – 17

Industry profile

3 Chapter 2: Organization profile 18 – 31

4 Chapter 3: McKinsey’s 7S framework with special 32 – 39

reference to organization under study

5 Chapter4: SWOT analysis 41 – 43

6 Chapter 5: Analysis of financial statements 44 – 47

7 Chapter 6: Learning experience 48

8 Conclusion

9 Bibliography 50
 EXECUTIVE SUMMARY

This project title Organization study of Athmashakthi multipurpose Co-

cooperative Society is submitted in partial fulfillment of the requirement for the award of
Master of Business Administration.

The Co-operative societies play a major role in the development of our country.
They bring out various loan schemes to help people develop their lifestyle. Over years the
demands for the schemes introduced by the co-operative societies have increased. This has in
turn helped the Co-operative societies to provide more advanced services. They have adapted
new technologies. They have significantly contributed the growth of the banking sector.

The data for the study is collected by primary data which was collected by
interviewing the external guide and the secondary data was collected by the official website
of the bank and annual reports.

1|Page
 CHAPTER 1
INTRODUCTION
INTRODUCTION TO THE INTERNSHI

Organisation study is an understanding the policy , process, structure

andmethodology of an Organization .Organisation study provide brief description of the
overall function of the organization .

Oragnisation study is the systematic and careful application of knowledge about how
people perform within oraganisation and understand the working environment of the
organization .

THE PURPOSE OF INTERNSHIP:

Internship programme is done by the student to get the field experience with an
opportunity to share their experience and knowledge. Internship programme as a part of
Master of Business Administration (MBA) programme, completing this project from a co-
operative bank will make my theoretical knowledge about the bank to practical knowledge
and experience. I got the opportunity to do 4 week project in Athmashakthi multipurpose co-
operative society. The co-operative society is a bank which was established to support the
economic development of the country. At present the co-operative society is providing
innovative staff of the bank made me to know knowledge about how the bank actually works
to satisfy the customers.

1. To enrich classroom learning through exposure to related on-the-job experiences.

2. To assist in the determination of career goals.
3. To provide experience in the field for those just entering the criminal justice field.
4. To broaden that experience and the students’ perspective on criminal justice issues for
those who have prior experience in the criminal justice field.

OBJECTIVES OF THE INTERNSHIP

The ASCS LTD has to function on sound business principles preserving

autonomous character. In the new economy the Ammembala Service Co-operative Society
LTD faces a tight competition from other firms. To effectively serve the credit and bank

2|Page
needs and to attain liabilities, operational efficiency in all areas is very important. The main
objectives of the study are:

 To study organization and working of Athmashakthi Multipurpose Co-operative

Society Ltd.
 To study the various activities of the Bank.
 To understand the organization structure.
 To analysis the sources and uses of fund raised by the Bank.
 To understand the structure and functioning of the organization .
 To understand the delegation of authority and responsibility .
 To understand the policy ,procedure and structure of the organization .
 Integrate and apply the theory and research skills derived from his/her criminal justice
coursework.
 Gain first-hand knowledge and a greater understanding of a criminal justice agency,
including the Administrative functions and the community forces which affect its
organization and administration;
 To study term loan sanctioning procedure at co-operative Bank.
 To study the credit evaluation methods followed by the Bank for different credit
advances.

Significance of Internship

 The training has helped the trainee to gain business work experience since he was
involved in practical in a business environment .
 The training has equipped the trainee with more knowledge in addition to that
obtained in class in relation to the working environment. .
 The internship training has managed to expose the trainee to the challenges in the
work place and how the practical work in the business environment
 The internship training has helped the trainee in making friends with the other trainees
through interactions.

3|Page
SCOPE OF THE STUDY

This study make An effort to focus on various activities of Athmashakthi

Multipurpose Co-operative Society LTD, organization structure, sources of fund,
shareholders, workers and share capital etc.

 NEED FOR CO-OPERATIVE BANKS

The objectives of banks are to accept deposits and lending of money to members and
non-members and a lot of general utility services. The concept of fund management involves
proper acquisition and application of funds with a view to optimize returns. Co-operative
credit based on the principles of self help and mutual help. It is the credit intended by Co-
operative banks to its members and other people. It is considered as the mechanism to the
credit need of farmers, small traders, artisan, handicrafts, etc.

1.5 OBJECTIVES OF THE STUDY

The ASCS LTD has to function on sound business principles preserving autonomous
character. In the new economy the Ammembala Service Co-operative Society LTD faces a
tight competition from other firms. To effectively serve the credit and bank needs and to
attain liabilities, operational efficiency in all areas is very important. The main objectives of
the study are:

1. To study organization and working of Ammembala Service Co-operative Society

LTD.
2. To study the various activities of the Bank.
3. To understand the organization structure.
4. To analysis the sources and uses of fund raised by the Bank.

To make various suggestion, Recommendation based on the findings of the study

4|Page
1.6 METHODOLOGTY

The study is based on single unit and hence case study approach is accepted as
general methodology. Observation method and personal interview methods are used for the
study.

1.7 SOURCES OF DATA

For the study both primary and secondary data are used.

PRIMARY DATA

Primary data are collected by interviews and discussions with the Managing
Director ,secretary, president, staff, customers and shareholders of the Bank.

SECONDARY DATA

Secondary data are collected from published accounts, annul reports, and other
publications such as news paper, journals, bulletins etc.

1.8 LIMITATION OF THE STUDY

The major limitations of the study are:

1. The study related with a single unit hence conclusion may be valid for unit concern.
Generalization of conclusion has their own limitation.
2. Inter branch comparison of Ammembala Service Co-operative Society LTD. Could
not be made owing to the shortage of time.

5|Page
 Industry Profile

Introduction

Co-operative credit societies are important institutions in modern times for

the promotion of economic and social justice. Today the lie of artisans small traders are under
the control of money lenders. For the provisions of loan at cheapest rate and distributing non-
agricultural activities, which will certainly protect the poor and needy section of the society
especially in the witches of money lenders the existence of co-operative societies are
necessary

Co-operation serves as an organized instrument for economically weaker employees

and consumers, for strengthening and protecting themselves against exploitation by the
stronger section like money lenders and traders. Through Co-operation common people can
protect their interest by eliminating middlemen’s profit. Thus Co-operation is an association
of persons seeking mutual aid, to protect their interest.

Co-operative movements had its origin from the exploitation of capitalists. Co-operative is a
worldwide movement covering various economic activities to improve the condition of the
weaker section of the community. It has an impact in agriculture, Institutional, Social,
Political and economic progress of every region.

Co-operative institution has been accepted as a significant instrument of socio-

economic transformation in rural and urban areas. In India co-operation has its origin in the
field of credit at present stretches. It aims to areas such as production, marketing, processing,
public health, consumer sector, etc. The constitution of India and policy resolution have
emphasized that there is no other instrument as potentially of social purpose as the Co-
operative movement.

6|Page
FEATURES OF CO-OPERATION SOCIETY
The Co-operative enterprise has its own characteristics have its own
characteristics features, which are as follows:

 Co-operation is voluntary organizations were members can join the organization or

leave the organization on their own free will.
 It is the organization of poor.
 All members of the society equal rights and responsibilities.
 Co-operative does not stress on profit. It stands for better service to its members.
 There is no room for exploitation. Actually it aims at prevention of exploitation.

Co-operative societies are indented for improving the living conditions of their members.
Successful Co-operatives makes their members life richer and happier and help to reduce
their burden along with the burden of others.

ROLE OF CO-OPERATIVES

Co-operative is a form of organization, where in person voluntary associated to

gather as human Beings on a basis of equality for the promotion of economic interest of
themselves. Co-operation plays a very crucial role in the social development of the nation. It
puts all social tension and Disturbance to end, with the help of spirit of love, affection and
brotherhood. It improves the Standard of living of people by providing proper education and
training. Co-operative organization Has been set up to the small farmers by providing all
agricultural input required by them. Although it is difficult to remove and Co-operation can
prove to be powerful instrument in this direction.

7|Page
 Principles of co-operative society

According to the international co-operative alliance statement of co operative

identity, a co-operative is an autonomous association of persons united voluntarily to meet
their common economic, social, and cultural needs and aspirations through a jointly owned
and democratically controlled enterprise. Co-operatives are on the value of self-
responsibility, democracy, equality, and solidarity. In the tradition of their founders co-
operative members believe in the ethical values of honesty, openness, social responsibility
and caring for others.
 Voluntary and open membership
 Democratic member control
 Member economic participation
 Autonomy and independence
 Education, training and information
 Co-operation among co-operatives
 Concern for community

A co- operative bank is a financial entity which belongs to its members, who are the
same time owners and the customers of their bank. Co-operative is often created by persons
belonging to the same local or professional community or sharing a common interest. Co-
operative banks generally provide their members with a wide range of banking and financial
services like loans, deposits, banking account

Performance of bank

After the financial crisis that began in 2008, banks are taking steps to improve
their performance measurement capabilities in light of changed economic and market
conditions and new management needs. The IT revolution has had a great impact on the
Indian banking system. The use of computers has led to the introduction of online banking in
India. Indian banks were finding it difficult to compete with the international banks in terms

8|Page
 of customer service; without the use of information technology. Today, Indian banks can
confidently compete with modern banks of the world.

Structure of bank

RESERVE BANK OF INDIA

SCHEDULED BANK NON- SCHEDULED BANK

SCHEDULED COMMERCIAL BANK SCHEDULED CO-OPERATIVE BANK

URBAN CO-OPERATIVE BANK

PUBLIC PRIVATE FOREIGN REGIONAL

SECTOR SECTOR BANK RURAL

STATE CO-OPERATIVE BANK
BANK BANK BANK

SBI and Its Old New

Private Private
Associates
Sector Sector
Bank Bank

Nationalized

9|Page
TYPES OF CO-OPERATIVE SOCIETIES

CO-OPERATIVE SOCIETIES

AGRICULTURAL NON-ARGICULTURAL

Agricultural Non- Agricultural Non-

Credit Society Agricultural Non-Credit Agricultural
Credit Society Society Non-
CreditSociet
y

FORMATION OF CO-OPERATIVE SOCIETY

A Co-operative society can be formed as per the provision of the Co-operative

societies Act 1912. At least 10 persons having the capacity to enter into the contract with
common economic objectives like farming, weaving, consuming, etc can form a Co-operative
society. A joint application along with byelaws of the society containing the details about the
society and members has to be submitted to the Registrar of Co-operative societies of the
concerned state. After scrutiny of the application and the byelaws the registrar issues a
certificate of registration.

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History of Indian banking industry

The origin of western type commercial banking in India dates back to the 18th century.
The story of banking starts from Bank of Hindustan established in 1770 and it was the first
bank at Calcutta under European management and liquidated in 1829-32. In 1786 General
bank of India was set up. Since Calcutta was the most active trading port in India, mainly due
to the trade of the British Empire, it became a banking center. Three presidency banks were
set up under charters from the British east India Company that is Bank of Calcutta, Bank of
Bombay and the Bank of madras. The Bank of Calcutta established in 1806 immediately
became Bank of Bengal. In 1921 these three banks merged with each other and imperial bank
of India got birth. Imperial bank of India was later renamed in 1955 as the State bank of
India. Thus State bank of India is the oldest bank of India. The first Indian commercial bank
which was wholly owned and managed by Indians was central bank of India which was
established in 1911. So, central bank of India is called as India’s first truly swadeshi bank.

In 1839, there was an effort by Indian merchant to establish a bank called union bank, but it
failed within a decade. Next Allahabad bank was established in 1865 and working even now.
So Allahabad bank is also known as one of the India’s oldest joint stock bank.

Co-operative banking in India

The idea of co-operative movement in India was first suggested by a civil servent
Fredrick Nicholsan in 1891. The co-operative movement was formally inaugurated on 24th
march 1904 after imperial legislative council passed the co-operative credit societies acts
190A large number of agriculture credit societies were set up in the village under the co-
operative societies act 1904. The co-operative credit movement made good progress during
the after the first world war of 1914-1918. with the outbreak of the second world war of
1935-1945. The co-operative credit movement made considerable progress once again. The
number of co-operative credit institution has increased, their membership had gone up their
deposits and advance also had increased. There was much progress has been made in co-

11 | P a g e
operative banking due to the keen interest shown by Reserve Bank of India in Co-operative
Credit Movement.

Agriculture is very important for Indian peoples. Nearly 70% of Indian

population being dependent on agriculture. In the ancient days farmers sold their goods
directly to the consumers against cash basis or barter exchange. But in this global scenario
when there is modern changes in every field of activities. How can this field agriculture
escape? The topic of the research includes the words a co-operative society, agriculture and
marketing these three are different term which works for each other. And if there are
development in one than it develops other also.

The co-operative societies works on the co-operation basis. It offers facilitates to

improve agriculture product marketing such as establishment of regulated market,
construction of warehouse, provision for grading and standardization of product
standardization of weight and measures, daily broadcasting of market prices of agricultural
corps on All India Radio, improvement of transport facilities etc. the above agriculture
product marketing is very possible and exploitation of farmers by the middle mans is
minimized.

Agriculture forms the backbone of the Indian economy. It contributes 18.5

percent to the GDP and provides employment to about 52 percent of the total working
population. The advanced technological change in the agricultural sector necessitated the
requirement of more working capital. Hence, the poor peasants in India are in search of
timely credit. Co-operative banks were established on the principle of co-operation and to
serve the poor peasant. The main function of these banks is to relieve the poor farmers from
the clutches of the money lenders. Credit is an important input which ensures adequate
working capital as well as infrastructural development. Adequate and timely credit provision
significantly increases agricultural output which leads to an increase in the economic
development of the cultivators and people attached to cultivation.

The emphasis on agricultural credit continued to be on progressive

institutionalization for providing timely and adequate credit to farmers for increasing
agricultural output and productivity. It also aims at better access to institutional credit for
small and marginal farmers and other weaken sections to enable them to adopt modern
technology and improved agricultural practices. Agricultural credit has been distributed

12 | P a g e
through a multi staged network consisting of Commercial banks Regional Rural banks and
credit co-operatives.

Co-operative 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. Under the Montague-Chelmsford
Reforms of 1919, cooperation became a provincial subject and the provinces were authorised
to make their own cooperative laws. Under the Government of India Act, 1935, cooperatives
were treated as a provincial subject. The item "Cooperative Societies" is a State Subject
under entry No.32 of the State List of the Constitution of India.

In order to cover Cooperative Societies with membership from more than one
province, the Government of India enacted the Multi-Unit Cooperative Societies Act, 1942.
This Act was an enabling legislative instrument dealing with incorporation and winding up of
cooperative societies having jurisdiction in more than one province. 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.

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. As a result,
they emerged as a distinct segment in our national economy.In the First Five Year Plan, it
was specifically stated that the success of the Plan would be judged, among other things, by
the extent it was implemented through cooperative organisations.

13 | P a g e
 The All-India Rural Credit Survey Committee Report, 1954 recommended an
integrated approach to cooperative credit and emphasized the need for viable credit
cooperative societies by expanding their area of operation, encouraging rural savings and
diversifying business. The Committee also recommended for Government participation in the
share capital of the cooperatives.

Evolution of co-operative society

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

policy on cooperatives. Jawaharlal Nehru had a strong faith in the cooperative movement.
While opening an international seminar on cooperative leadership in South-East Asia he had
said " But my outlook at present is not the outlook of spreading the cooperative movement
gradually, progressively, as it has done. My outlook is to convulse India with the Cooperative
Movement or rather with cooperation to make it, broadly speaking, the basic activity of India,
in every village as well as elsewhere; and finally, indeed, to make the cooperative approach
the common thinking of India....Therefore, the whole future of India really depends on the
success of this approach of ours to these vast numbers, hundreds of millions of people".

The cooperative sector has been playing a distinct and significant role in the country’s
process of socio-economic development. 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. The total
membership of cooperative societies increased from 1.55 crore to 20.45 crore during the
same period. The cooperatives have been operating in various areas of the economy such as
credit, production, processing, ,marketing, input distribution, housing, dairying and textiles.
In some of the areas of their activities like dairying, urban banking and housing, sugar and
handlooms, the cooperatives have achieved success to an extent but there are larger areas
where they have not been so successful. The failure of cooperatives in the country is mainly
attributable to: dormant membership and lack of active participation of members in the
management of cooperatives. Mounting over dues in cooperative credit institution, lack of
mobilisation of internal resources and over-dependence on Government assistance, lack of
professional management. Bureaucratic control and interference in the management, political
interference and over-political have proved harmful to their growth. Predominance of vested

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interests resulting in non-percolation of benefits to a common member, particularly to the
class of persons for whom such cooperatives were basically formed, has also retarded the
development of cooperatives. These are the areas which need to be attended to by evolving
suitable legislative and policy support.

MARKET SIZE

The Indian banking system consists of 27 public sector banks, 26 private sector banks,
46 foreign banks, 56 regional rural banks, 1574 urban cooperative banks, in addition to
cooperative credit institutions. Public –sector banks control more than 70 per cent of the
banking system assets, thereby leaving a comparatively smaller share for its private peers.
Banks are also encouraging their customers to manage their finances using mobile phones.
ICRA estimates that credit growth in India’s banking sector would be at 7-8 per cent in FY
2017-2018.

The government and the regulator have undertaken several measures to

strengthen the Indian banking sector.

 Government of India has decided to amend section 35A of the Banking Regulation
Act that will allow the Reserve Bank of India (RBI) to direct banks for the recovery
of non-performing assets (NPA’S)
 The Reserve Bank of India (RBI) has proactively instructed banks to increase their
levels of provision on the loans provided to the telecom sector as a prudent measure,
which help to shore up provisions for future recognition of any non-performing assets
arising out the sector.
 The RBI has allowed banks in Indian to raise funds through issuance of rupee-
denominated bonds overseas, also called masala bonds, within the current limit of RS
2,44,323 crore (US$36.6 billion) set for foreign investment in corporate bonds .
 The Ministry of Labour and Employment has successfully opened around 3,840,863
bank accounts as on December 26, 2016, for workers especially in the unorganised
sector, as a part of its campaign to promote and ensure cashless transfer of wages to
workers.
15 | P a g e
 Enhanced spending on infrastructure, speedy implementation of projects and
continuation of reforms are expected to provide further impetus to growth. All these factors
suggest that Indian’s banking sector is also poised for robust growth as the rapidly growing
business would turn to banks for their credit needs.

Also, the advancements in technology have brought the mobile and internet banking
services to therefore. The banking sector is laying greater emphasis on providing improved
services to their clients and also upgrading their technology infrastructure, in order to
enhance the customer’s overall experience as well as give banks a competitive edge.

Co-operative societies and rural India

India is mainly an agrarian society with more than half of its population still residing
in the villages. Rural sector is the major contributor to the overall GDP of the nation and
hence lack of development in villages means lack of development in India. Cooperative
societies are playing significant role in this and share a major credit in the growth of rural
sector which along with government and private sectors contribute to the overall economy of
India. Cooperatives cover more than 97%of Indian villages, some run by its members and
some by the government

Needs of rural people are served by different forms of private and government
organizations including partnership firms, co-operatives, companies and charitable trust.
Government each year spends lakhs to crores of rupees on rural development. But co-
operatives working in rural areas are playing noteworthy role in this. Gujurat’s Dairy co-
operative and Maharashtra’s sugar co-operative prove their contribution.

Cooperatives originated in the West during the middle of the last century and from
there these came to India. Formally co-operatives were introduced to India in 1904 when the
Indian Co-operative Societies Act was promulgated. Moreover rural indebtedness was the
major force behind the initiation of chit funds and cooperatives in India. Initially these were
just to provide credits to the farmers in the form of credit societies and gradually these start
working in other fields such as banking, processing and marketing. The meager funds of
farmers were pooled in to run cooperative and it was an attractive way to solve their financial

16 | P a g e
problems. After independence role of cooperative societies grew to encompass socio-
economic development and eradication of poverty in rural India. It became an integral part of
five year plan. With this co-operative societies became a fundamental part of our economy.

Non-credit societies came in 1912. Importance of co-operative was also highlighted

in the Royal Commission on Agriculture in 1928. With the formation of the Reserve Bank of
India (RBI) in 1935, developing more cooperative societies was given due importance.

Main aim of the cooperative was to get the poor and indebted farmers out of poverty
and out from the clutches of money lenders. Within short span of time, role of cooperatives
extended beyond agricultural credit. It started covering activities such as production, farming,
marketing and processing. Cooperatives are now playing a very significant role in the socio-
economic development of our country especially the rural India.

In 1951 there were 1,81,000 cooperatives of all kinds in India and this number
increased to manifold within short span of time. During 2007-08 there were 1,50,000 primary
credit cooperatives and some 2,60,000 non-credit primary societies of all types. In India there
are four major types of cooperatives –

 The Primary agricultural credit or service societies

 Agricultural non-credit societies
 Agricultural co-operative marketing societies
 Co-operative farming societies

Though the expansion and reach of cooperatives is highly impressive but their way
of working is not Except for few co-operative societies most of these lack motivation. These
are merely run by the government without motivation and enthusiasm of their members.
Some of this even lack in the required funds. Other factors that lead to the slow progress of
these societies are – mismanagement, manipulation, restricted coverage, lack of awareness,
and political interference. But this does not mean the downfall of the massive projects.
Despite all this, cooperatives are really helping poor in becoming self-reliant. Scope of
cooperative societies in rural India can improve further with women participation.

17 | P a g e
 CHAPTER 2

COMPANY PROFILE
Organizational profile

Ammembala Service Co-opertaive Society Ltd. is a co-operative society which is

started under the co-operative society’s act of 1904.

Ammembala Service Co-opertaive Society mudipu kuradu, Bantwal Taluk

At a glance

1. Name and address of the firm : Ammembala Service Co-opertaive Society Ltd.
Mudipu-kurnadu
Dakshina kannada district

2. Registration date : 31-01-1975

3. Registration number : AARPT3432

4. Branches of bank : Mudipu(Head office)

Phajeer(Branch)
Gramachavadi Konaje(Branch)

5. Paid up capital : 50,06,765

6. Deposits : 27,60,91,741.62

7. No. of members

A Class : 2643
C Class : 2253

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BACKGROUND

Ammembala Service Co-opertaive Society Ltd. is located in mudipu. Mudipu is a

small town in Bantwal Taluk in Dakshina kannada district of Karnataka State, India. It
comes under kurnadu panchayath. It belongs to Mysore Division. It is located 20km towards
south from district head quarters Mangalore. 15km from Bantwal. 335km from state capital
Bangalore, Mudipu pin code is 574153 and postal head office is kurnad.

Passing of Indian Co-operative Societies Act 1912 is an important land mark in the
co-operative movement in the country. As a result of this, a number of a co-operative
societies has been organised in the district by the people and question of financing them had
to be talked. This task in the first instance was undertaken by the Puttur Rural Credit Co-
operative. Society which was established in june 1912.

But experience soon proved that its constitution and resources were inadequate for
this task and the enthusiastic pioneers who were responsible for ushering it in to existence
applied their minds to the formation of a District Bank with the avowed purpose of financing
Primary Societies. Thus come into existence on 30th November 1913 the South Canara
District Central Cooperative Bank which was formally started on its work on 24th January
1914 with head office at Puttur. Founded by molahalli Shiva Rao, the bank was started in
1914 as 7th Central Corporative Bank in the Madras Presidency at Puttur which was later
shifted to Mangalore in 1927.

Late Molhalli Shiva Rao father of the Co operative movement of the district and
his team of selfless workers were responsible for the establishment and development of the
bank and also several Co-operative Institutions like primary credit co-operative marketing,
Industrial and other societies. the dedicated sincere, selfless work of the veteran co-operaters
helped the moment to spread far and wide and served the necessities of all the villages in the
district resulting in a strong base for the Cooperative Institution. cooperative societies started
under his able and spirited guidance, the bank and grown, developed and Marched through
progressive path and has reached a new height of achievement. The silver jubilee celebration
in 1939, golden jubilee in 1964, diamond jubilee in 1974, Platinum jubilee celebration in

19 | P a g e
1991, where the important landmarks of progress and milestone of the progress achieved by
the bank.

The bank was registered on 1913 and started its formal functioning from 1914.
Puttur was the first registered office of the bank subsequently it was shifted to Mangalore. the
bank is having 101 branches including service branch spreading over the undivided district of
South Canara. The bank has given top priority for financing agricultural sectors scenes
inspection by taking into consideration various credit needs of the farmers. It is serving
farmers by providing timely and adequate finance through the primary agriculture societies at
the ground level. The bank is taking active participation in Government sponsored schemes
such as S.G.S.Y., Swarojgar Credit Card Scheme etc .

The bank has taken active participation in promoting and financing the self help
groups and has promoted 40336 SHG groups under the supervision of the Navodaya Grama
Vikasa Charitable Trust®, Mangalore. The bank has also begged state level award for best
performance of SHGs from NABARD since 11 years. These groups have mobilized
Rs.131.59 crores as savings, and 31497 groups are credit linked with Rs. 158.52 crores
advances to them. As on 31st 3 2014 the bank has mobilized rupees 2001.14 crores of
deposit, Rs.1390.51 crores loan understanding, out of which rupees 507.41 crores under S.T
Agricultural and Rupees 151.87 crores under M.T Agricultural the bank advances loans to
various purposes like vehicle, housing, Commercial Complex, pledging of jewels, consumer
durable and agricultural land purchase.

Department of Ammembala Co-operative society

1) Loan department
2) Cash department
3) Gold loan department

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Nature of business

The society carrying the banking business such as deposits, cheques, loans and
advances etc. the retail business provides financial products and services to the customers.
They provide housing retail trade, customer, education and other personal loans and deposit
services such as target savings and fixed deposits for the customers. The society provides
products and services to rural people.

Vision statement

The vision is to become an important part in growing of Indian Economy. Agriculture is the
backbone of our country. More than 50% of the population is engrossed in agriculture. The
society has the vision of being a part of developed India. Thus the society aims at helping the
upcoming of the farmers. They want development in agriculture and standard of life of the
agriculturists. They want to develop the nature of Self-help, Co-operation among the
members

Mission statement

 Encouraging the members to adapt the modern technique of Agriculture.

 Providing the Short-term, Mid-term and Long-term loans for agricultural
development.
 Accepting deposits from the members and facilitating loans based on surety.
 Providing fertilizers, pesticides, hybrid crop seeds and other agricultural items needed
by the farmers to co-operative banks and private businesses.
 Providing employment to the unemployed and training to the to the people o start
their own business.

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Quality policy

The society is committed to improve the farmers economy development and give
them quality of services through extensive induction of technology in its day to day operation

Product and Service

Ammembala service co-operative society ltd. provides banking services according
to guidance at co-operative act. It conducts banking business by collecting deposits and
lending funds.

Deposit schemes:

Fixed deposit

Slab Rate of Rate of interest for senior

interest (%) citizen/ widow/ soldier/
institutions (%)
46 to 90 days 7 7.5
91 to364 days 8 8.5
1year 9.5 10
1year and above 10 10.5
2 year and above 10.5 10.5

90% of loan can be granted on fixed deposit during emergency

Recurring deposit

Account holders are expected to pay a fixed amount every month for the fixed period. The
Account may be opened for the period of minimum 6 months and maximum 5 year from the
date of opening. More than one account can also be opened in the name of the same person.
Rate of interest is 9%.

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Nityanidhi (pigmy)

This scheme involves collection of money from an individual on daily basis, weekly basis,
and monthly basis by pigmies of the bank. 90% of loan can be granted on collected deposits
during emergency.

Saving account

The individual who has invested on a SB account gets 4% rate of interest. The interest will be
allowed at the rates decided by the society from time to time. The individual need to be A
class or C class member. The documents required to open this account are ID proof, address
proof and 2 passport size photos. Account may be opened with a minimum sum of RS. 200/-
and the same to be maintained to keep the account running.

Current account:

This account is meant for day to day business transactions where the customers are not
charged for any number of transactions. Account may be opened with a minimum sum of RS.
200.

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 ORGANIZATION STRUCTURE OF ASCS LTD

BOARB OF DIRECTORS

MANAGING DIRECTOR

ASSISTANT SECRETARY

BRANCH MANAGER INTERNAL AUDITOR

SENIOR CLERK

JUNIOR CLERK

SALES MAN ATTENDER

PEON WATCHMAN

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 Loan scheme
Some of the loan provided by banks as follows:

1. AGRICULTURAL LOANS:

A. Short term Loans:

a. Crop Loan / Kisaan credit loan: This loan is granted only the N.C.L certificate holders. The
amount of loan granted is within the limit mentioned in their N.C.L certificate. The loan is
granted as directed by the government and other financial bodies. The rate of interest is
decided by the government and other financial bodies. When there is subsidy announced by
the government, the loans are granted as per the direction from the government and other
financial bodies. The administrative board can decide the rate of interest for the loans being
granted within the limits given by the government. If there is no redemption of the loan from
the customer’s end, then the society has all rights to sell the product of the customer and
recover the amount. Depending on the limit mentioned in the member’s N.C.L certificate, a
loan of maximum of Rs.5 lakh can be sanctioned.

B. Midterm and Long term agricultural loans:

a. Midterm Agricultural development Loan: This loan is granted on the basis of R.T.C (Eg:
Adding fertile soil to the farm, adding fertilizers, constructing canals, purchase and
installation of pump sheds, and other agricultural activities). 4 Midterm Agricultural
development Loans can be given each not crossing the limit of Rs.50000/- each. The
expenses occurred during the distribution of government help-aid will be taken care by the
Dakshina Kannada District central bank.

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b. Agricultural land Mortgage Loan: This type of loan is granted on the basis of the
agricultural land mortgaged by the farmer for either midterm or long term. All the documents
should be verified thoroughly before sanctioning the loan. Legal opinion should be taken.
The maximum limit decided by the administrative board should not be crossed. While taking
the certified documents for Surety, the member has to get a notary signature on a document
which states that the member has no other loans outside the organization. The same has to be
advertised in the region’s main newspaper. If there is no objection from anyone, the loan
shall be granted.

c. Agricultural farm house loan: This loan is granted for the farmer to build a farmhouse in
his agricultural land. The administrative board is expected to evaluate the value of the
agricultural land the borrower possesses and then sanction the loan such that it does not
exceed 75% of the estimated value of the land. Legal opinion should be taken. While taking
the certified documents for Surety, the member has to get a notary signature on a document
which states that the member has no other loans outside the organization. The same has to be
advertised in the region’s main newspaper. If there is no objection from anyone, the loan
shall be granted. This can be sanctioned for both Midterm and Long term.

d. D.C.C bank loan: Eligible member shall be granted a maximum of Rs.10 Lakh for his
agricultural developmental needs. The rules and regulations to be abided and Rate of Interest
shall be decided by the D.C.C Bank / Government / Administrative board.

2. NON-AGRICULTURAL LOANS:

a. Jewel Loan: This loan shall be granted for a maximum of 1 year immediately on checking
the value of the gold ornaments bought to the society for mortgaging. According to the value
of the gold ornaments evaluated, the table below shows the maximum percentage of loan
granted on the day of the gold pledged

b. Produce Loan: This loan shall be granted if the farmer mortgages his produce. 70% value of
the produce is given as loan keeping the present day’s rate on mind. The validity of this loan

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 is 6 months. In case, the rate of the produce mortgaged falls down, the society has the right to
sell the produce and close the loan. The rate of interest for this loan keeps changing time to
time. Since the go down of the society has a yearly insurance policy, there is no need to
insure the products again. During the processing of this loan, 1% will be cut as other income
and the processing fee also will be deducted.

c. Surety Loan: This loan shall be granted for the Members any immediate needs. Maximum
of Rs.10000/- shall be granted. One’s whose surety do not have an N.C.L certificate will be
granted a loan of Rs.5000/-. This loan can be paid back either monthly or yearly. After
overdue of 3 months, recovery action shall be executed. The one who signs the papers as
guarantor will be responsible for the payment if the loan is not paid on time.

d. Midterm Non-agricultural Loan: This loan shall be granted for any purpose of the member
(Eg: House repair, Water tank creation, Purchase of animals etc). This loan is given on basis
of either his produce or his agricultural land. One member can get a maximum of 2 Midterm
Non-agricultural Loan.

e. Non agricultural land mortgage loan: This loan shall be granted on the basis of mortgaging
the member’s agricultural or non-agricultural land for non-agricultural purposes (Eg.
Building Warehouse, Installation of Solar, interlock, application of sheets etc). Appropriate
legal opinion should be sought before sanctioning the loan. As decided by the administrative
board, the loan can be sanctioned without crossing the maximum limit decided. While taking
the certified documents for Surety, the member has to get a notary signature on a document
which states that the member has no other loans outside the organization. The same has to be
advertised in the region’s main newspaper. If there is no opposition from anyone, the loan
shall be granted. This loan is given for 5 to 10 years.

f. Self-help group / joint liability group loan (SHG/JLG): There are a number of Self-help
groups working in the society. The group shall be granted a loan of value which is 4 times the
value of its members’ savings. Firstly, every member’s family head’s permission is required.
They also need reference from their well wishers who will show faith in their work. Each

27 | P a g e
 member of the group is responsible for the loan of their group. Rate of interest is decided by
the administrative board. This loan is to be brought from the central bank as per their
regulation. Seeing the group’s wellbeing, the administrative board can decide to give more
loans from their fund. For the Joint liability groups, their capacity to pay back the loan
amount is assessed and then the loan is sanctioned according to the NABARD rules.

g. House hold appliance purchase loan: This loan is granted for the member’s need to
purchase household appliances within the limit of Rs.25000/-. The purpose of the loan has to
be clearly mentioned in the loan application. Among the 2 guarantors, one has to have an
N.C.L certificate. The loan amount should be limited to 75% of the estimation given by the
appliance dealer. The amount can either to given to the dealer directly or to the borrower’s
account. The loan has to be paid back in monthly or half yearly installments within 5 years.
Recovery method will be immediately auctioned after 3 months of overdue. The society has
the right on the borrower’s and his guarantor’s property to recover the amount lent to the
borrower.

h. Vehicle Loan: This loan is granted by mortgaging the vehicle purchased by the borrower. 2
guarantors are needed. The society can also keep the borrower’s or the guarantor’s RTC as
additional security. The loan shall be granted within 70% of the estimation given by the
vehicle dealer (Excluding Insurance + Accessories). One key is to be kept in the society for
safety. If the loan is overdue for 3 Months, the society can add it to the RTC and with or
without informing the borrower, they can take the vehicle into custody. The loan can be paid
back within 5 years in monthly installments. All the documents asked by the society for
safety should be given by the borrower. Till the total loan is cleared, the borrower should
handover a copy of Insurance every year. Duplicate copy of the R.C has to be submitted to
the society. With intention of granting the loan quickly, there is committee for loan
sanctioning. Maximum of Rs.10 Lakh can be sanctioned.

i. Staff loans and advances: For the permanent employee’s of the society, the society can give
loan up to Rs.60000/- or of value 6 times their salary; whichever is of lower value. For
festivals, advance of Rs.5000/- can be given without any rate of interest. Salary of one month

28 | P a g e
 can be given as advance without any rate of interest. Advance taken on festivals and salary
advances have to be cleared in 10 months. Staff housing loan can be granted with 10.5% rate
of interest by asking them to mortgage required documents.

j. Small business loan: This loan is granted for the purpose of business development. This type
of loan is sanctioned for a maximum time of 3 years with monthly installment condition. The
following documents are to be submitted with the loan application:
1. License for the business
2. Rent agreement
3. Bond stating that the society will be informed before taking the security deposit from the
building owner
4. Copy of TIN Number
5. Details of the warehouse

The rate of interest shall be decided by the administrative board time to time. And
minimum one guarantor has to sign who either has a N.C.L certificate or is a taxpayer.
Rs.50000/- will be granted for the first time. If this is paid promptly, next time onwards Rs.1
Lakh can be sanctioned. After 3 months of overdue, the society has right to auction the goods
in the business, warehouse and other immovable properties to equalize the value of loan
granted to the borrower.

k. Housing loan/ Repair Loan: This type of loan is granted to the society’s A class members
for the purpose of building house or repairing the house on the basis of mortgaging non-
agricultural land. Legal opinion has to be sought and loan has to be granted within the limit.
Rate of interest is decided by the administrative board of the society from time to time. One
of the guarantors has to be a N.C.L holder. Local Panchayat or related license should be taken
by the borrower. If required, the society can ask for other additional documents for security.
In case of Repair, the borrower should seek the permission of the local authorities. The loan
is granted in 2 installments. The chief executive officer and one member from the
administrative board should go for the inspection of site of work and then submit the report in
the administrative board meeting. The loan should be paid back in maximum ten years in

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 monthly installments (In special cases, administrative board can change the installments to
Quarterly, half-yearly or yearly)

l. Land Purchase Loan: This type of loan is given on the basis of the land being purchased by
the borrower. The value of loan granted should be within 75% of the value mentioned in sub-
registrar procedure. The society will hypothecate the land. After overdue of 3 months,
recovery method will be initiated. Loan is to be cleared in monthly or half-yearly
installments. The society wills hypothesis the land. After overdue of 3 months, recovery
method will be initiated. Loan is to be cleared in monthly or half-yearly installments.

m. J.LIC / other security loan: This type of loan is granted on the basis of LIC certificate or
other security certificates. The applicant has to get the surrender value of the insurance
written. The certificate will then be hypnotized and loan will be granted within the 80% of
the surrender value. Borrower should present the receipt of the previous paid installment.
After overdue, the certificate will be surrendered and closed. If the amount recovered does
not match with that of the loan, then the society has the right to auction the borrower’s or the
guarantor’s property.

INTERST ON LOANS AND ADVANCES:

Education loans up to 10 lakh 12.00%
Self-employment loans up to 5 lakh 12.00%

Jewel loans:
Up to Rs. 1000/- per gram 11.00%
Above Rs. 1800/- per gram 12.00%

30 | P a g e
Ownership pattern
The owners of the society will be the ultimate members of the society. The board of
director will manage the activities of the society. A salaried Chief executive officer will
manage the staff and activities of the society as per the board direction. The board will be
headed by president and vice president among those level directors. One member among the
board of directors should be a representative of the central bank.

Awards

The bank has bagged State Level Awards for best performance of Self Help Groups
from NABARD since 11 years.
The bank also bagged prize scheme for best performance from Karnataka State Co-
operative APEX Bank.

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 CHAPTER 3
McKENSY’S 7S FRAME WORK
MCKENSY’S 7S FRAME WORK OF AMMEMBALA SERVICE CO-
OPERATIVE SOCIETY

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STYLE

Leadership style of corporation bank manager is democratic. Democratic leadership,

also known as participative leadership, is a type of leadership style in which members of the
group take more participative role in the decision-making process. Everyone is given the
opportunity to participate, ideas are exchanged freely, and discussion is encouraged. While
the democratic process tends to focus on group equality and the free flow of ideas, the lead of
the group is still there to offer guidance and control.
The democratic leader is charged with deciding who is in the group and who gets contribute
to the decisions that are made. Researchers have found that the democratic. Leadership style
is one of the most effective and leads to higher productivity, better contributions from group
members and increased group morale.

Characteristics of Democratic Leadership:

Some of the primary characteristics of democratic leadership include:

 Group members are encouraged to share ideas and opinions, even though the
Leader retains the final say over decisions.

 Members of the group feel more engaged in the process.

 Creativity is encouraged and rewarded.

Researchers suggest that good democratic leaders possess specific traits that include:

 Honesty

 Intelligence

 Courage

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  Creativity

 Competence

 Fairness

 Strong democratic leaders inspire trust among followers. They are sincere and base
their decisions on their morals and values.

 Healthy Mind

 Learn the best ways to manage stress and negativity in your life.

 Followers tend to feel inspired to take action and contribute to the group. Good leaders
also tend to seek diverse opinions and do not try to silence dissenting voices or those
that offer a less popular point of view

Benefits of Democratic Leadership:

Because group members are encouraged to share their thoughts, democratic
leadership can lead to better ideas and more creative solutions to problem. Group members
also feel more involved and committed to projects, making them more likely to care about the
end results. Research to leadership styles has also shown that democratic leadership leads to
higher productivity among group members.

Drawbacks of Democratic Leadership:

While democratic leadership has been described as the most effective leadership
style. It does not have some potential downsides. In situations where roles are unclear or time
is of the essence, democratic leadership can lead to communication failures and uncompleted
projects. In some case, group members may not have the necessary knowledge to make
quality contributions to the decision-making process.

34 | P a g e
 Democratic leadership works best in situations where group members are skilled and
eager to share their knowledge. It is also important to have plenty of time to allow people to
contribute, develop a plan and then vote on the best course of action.

SKILL:
Banking sector has seen an exponential boom in the recent times. This boom has
also triggered the need of skilled and qualified human capital in the banking sector, which is
clearly indicated by the increasing opportunities in Private Bank Jobs and public Sector
Banks. A career in Banking, especially when it comes to Public Sector Banks has been a
preferred choice among the youth of this country.

Training and Development programs

Employees of the bank will undergo regular training and development programmes
based on the requirement of the employees. Employees are informed about the training and
developmental programs if there are any and they can undergo this training or developmental
programs if they feel its required.
There are different training and developmental programs provided by the bank and RBI
concepts such as core banking, CKYC(centralized know your customers), CBS(core banking
solutions), personality development, banking abilities etc in places like Bangalore, Pune,
Calicut. On sight training is also given by the manager for his subordinates.

SYSTEM:
Service provided by the corporation bank are consumer banking corporate banking,
finance and insurance , investment banking, mortgage loans, personal banking, savings,
securities, asset management, wealth management.

Recruitment Procedure in ASCS

The candidates will be selected on the basis of the written examination followed by
the interview. A S Co-operative society is a leading Public Sector Bank among co-operative
banks with Head Office in Mangalore with 03 branches. Any vacancy in the bank will be

35 | P a g e
published in two newspapers that is one local newspaper and an English newspaper. It
provides recruitment to the candidates for various posts as per the eligibility criteria.

Application Process
Eligible candidates need to fill the application form. Candidates can apply as per
the scheduled dates only. Candidates must ensure that the application from should be filled
completely and correctly. Candidates will have to fill the details in the application form such
as name, date of birth, category, exam centre, uploading the photograph and signature and
lastly, have to pay the application fees. Therefore, the interested candidates need to hurry up
and must apply before the last date.

Declaration of Result
The result for the ASC Society recruitment will be uploaded on the website
mccbankmangalore.com .Candidates can check their obtained scores in the examination from
the result which will be declared as per the scheduled dates only. The results will decide the
candidates who will qualify the examination for the recruitment of the concerned post.

Promotion and performance appraisal

Employees of the ASCS are encouraged to work efficiently and effectively
through promotion and performance appraisal. The following qualities in a employee are
considered while promoting an employees.
 Performance
 Achievement of given targets
 Seniority
 Punctuality
 Attendance

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SHARED VALUES

GOALS:
 To be the nationalized banks

 The bank has plans to implement IMPS

 It is now providing services of NEFT and RTGS

 The bank will implement ATM services in coming months

 To provide services such as Adhar based payments, UPIC, Bhim etc

STRUCTURE:
The Bank has a UCB tea tier organizational set up consisting of branches and Head
Office. The decision making process is based on the delegated power of each units. The
Board of Directors of the Bank ot its Committees are empowered to formulate policies
regarding the declaration of powers to various functional heads. The Board of Directors in
turn, are guided by the policies of Government of India and Reserve Bank of India in
formulating policies for implementation by the Bank.
Board of Directors are elected by the shareholders and Professional Directors and
Functional Directors are appointed by the board of directors.
At present, the Ammembala service co-operative society has one administrative office
(head office) and 2 branches. The administrative office and the main branch are in the bank’s
own building.

37 | P a g e
 ORGANISATION STRUCTURE OF ASCSs

Board of Directers

Excutive committee

President

Managing Director

General Manager

General Manager

Branch Manager

Senior Supervisor

Supervisor

Second division Clerk

Sub-Staff

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STRATEGY:
Most strategies for cooperative business development require increased capital.
Therefore, such strategies should focus not only on improving operational efficiency and
increasing member patronage, but also on attracting more member capital and new members.

STAFF:
There are total of 30 employees out of whom 20 are permanent employees and 5 are
contract employees and the remaining are part time and pigmy agents such as jewel
appraisers who are given commission.
The different types of staffs in ASCSs are:
 Branch Manager
 Assistant Manager
 Accountant
 Second Division Clerk
 Sub-Staff

39 | P a g e
 CHAPTER 4

SWOT ANALYSIS

40 | P a g e
 SWOT ANALYSIS

The overall evaluation of the company’s strength, weakness,

opportunities and threats is called SWOT ANALYSIS. This analysis helps the society in

41 | P a g e
realizing their strength and building upon them in order to overcome its weakness so that it
can take advantages of opportunities to manage the threats.

STRENGTHS:
It is the resources or capacity of the society that can be used effectively to
achieve its objectives. The strength of the Ammembala Service Co-Operative Society Ltd. Is

 Society provides good services to the customer and they have got well
experienced manpower.
 Agricultural lending The bank is successfully completed its 100 years of exiting
 Government schemes introduced by co-operative bank
 Relaxation from government like income tax and TDS
 Employees of ASCSs are from local areas
 There is a good network of FCBs organized at grass rout level

WEAKNESS:
These are the society’s negative aspects which stand as obstacles during
achievements of the future goals. These aspects are carefully handled by society to be in safe
mode.
 They are mainly concentrating in Kurnad, Bolyar and Phajeer panchayath
only. So they are into limited area of operation.
 Deposits were collecting from whole taluk but loans are offered to the operating are
only.
 Every Loan application should keep for Board Meeting. So the period for the entire
process takes long.
 Political influence the business

42 | P a g e
 A good number of miss fits and un-fits are found occupying the chairs of
administration
 Lack of professional management

OPPORTUNITIES:
It’s the favorable situation in the society’s environment. It is usually a trend or
change of some kind.
 Good employee recruitment
 Innovative approach to rural people with trust on retail lending
 scope to build a strong customer care
 Increases in volume of business to improve productivity
 ASCSs are integrated into their local environment and their roles goes beyond that of
provider of financial service
 On account of proximity of their members and their firms, ASCS has a good scope for
enlarging the membership
 ASCSs are pioneers in the field of micro finance

THREATS:
It is an unfavorable situation in the society environment that is potentially damaging
to its strategy. The threats may be a barrier, a constraint or anything external that might cause
problems, damages or injury.
 Inadequate and slow recovery of government subsidies
 Competition from public sector banks, number of co-operative societies and number
of finances.
 Changing policies of the government in relation to interest rate, reserve ratio etc. will
have serious impact on the society
 Higher cost of management especially for interest on deposits and establishment cost
 Failure of Government to honor guarantees when evoked
 Increasing litigation between a management and employees

43 | P a g e
 CHAPTER 5
FINANCIAL STATEMENT
 Financial Statement

"The objective of financial statements is to provide information about the financial position,
performance and changes in financial position of an enterprise that is useful to a wide range
of users in making economic decisions." Financial statements should be understandable,
relevant, reliable and comparable. Reported assets, liabilities, equity, income and expenses
are directly related to an organization's financial position.

Financial statements are intended to be understandable by readers who have "a reasonable
knowledge of business and economic activities and accounting and who are willing to study
the information diligently." Financial statements may be used by users for different purposes:

 Owners and managers require financial statements to make important business

decisions that affect its continued operations. Financial analysis is then performed on
these statements to provide management with a more detailed understanding of the
figures. These statements are also used as part of management's annual report to the
stockholders.
 Employees also need these reports in making collective bargaining agreements (CBA)
with the management, in the case of labor unions or for individuals in discussing their
compensation, promotion and rankings.
 Prospective investors make use of financial statements to assess the viability of
investing in a business. Financial analyses are often used by investors and are
prepared by professionals (financial analysts), thus providing them with the basis for
making investment decisions.
 Financial institutions (banks and other lending companies) use them to decide
whether to grant a company with fresh working capital or extend debt securities (such
as a long-term bank loan or debentures) to finance expansion and other significant
expenditures.

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A financial statement (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.

1. A balance sheet or statement of financial position, reports on a company's assets,

liabilities, and owners equity at a given point in time.
2. 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.
3. A Statement of changes in equity or equity statement or statement of retained
earnings, reports on the changes in equity of the company during the stated period.
4. A cash flow statement reports on a company's cash flow activities, particularly its
operating, investing and financing activities.

For large corporations, these statements may be complex and may include an extensive set of
footnotes to the financial statements and management discussion and analysis. The notes
typically describe each item on the balance sheet, income statement and cash flow statement
in further detail. Notes to financial statements are considered an integral part of the financial
statements.

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 Ammembala Service Co-operative Society Ltd.
Balance sheet as at 31-03-2017

Liabilities Balance Total Assets Balance Total

Share Capital Cash In Hand
A class Share 1060540.00 Cash balance 802494.29
C class Share 97575.00 10703025.00
Bank Balances
3556313.00 DCC Bank Vittal 66335.06
Welfare Fund DCC Bank Derlakatte 25888.00
Other Fund 5084700.00
Karnataka bank Mudipu 76420.80
Depreciation Fund 3771518.00 12412531.00
DCC Bank Vittl Current 267346.41
a/c
Deposit (liability) DCC Bank B. C. Road 465848.31
Savings Bank 39650082.62 DCC Bank Thokkotu 73281.28
233986369.00 DCC Bank Bolyar 659556.00
Fixed Deposit
DCC Bank Kodialbail 209082.16
Anand Nidhi
Deposit 2455290.00 276091741.62 DCC Bank Sahakari
Mahal 41109.29
SYNDICATE Bank
Staff Deposit 3430654.50 Mudipu 514087.27
DCC Bank Puttur 162413.00
Loans(Borrowing) CANARA Bank
57444297.00 Ammembala 937567.76
SCDCC Bank
Gayathri Credit Melkar 7330.00
DCC Bank Bolyar 4995787.71
Subsidy DCC Bank RU PE 5870.00
NABARD Grant 20257.00 .
Government Grant 76838.00 Investments
SCDCC Bank 350000.00 447095.00 Share Investment 4206000.00
Other Investment 78748824.65 82954824.65

Deposit Loan Members Loan

New 2986053.50
Mangala Kisan Credit
Old 19405.61 3005459.11
Loan 30918075.00
Mid-term Agriculture
Non-Produce Assets Loan 25247112.00
Loan 765416.00 Mid-term Non
900277.00 1665693.00 Agriculture Loan 197112576.00
Other use
Swa-sahaya Group 3655599.00
Deposit Loan 4671612.00
Provisions Other Loan 233866.00
10137913.00
Interest payable A/c Gold Loan 6833443.00 268672283.00

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 (Deposit)
Audit fees 70000.00 10207913.00 Provisions
New 7144877.00
Old 37174.63 7182051.63
Net Profit 1705115.96
Fixed Assets
Site 455459.50
Buildings 2638467.67
Furniture 1607097.15
Computer 585256.00
5286280.29
Closing Stock
3707668.00

Total 377113535.19 Total 377113535.19

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 CHAPTER 6

LEARNING EXPIRIENCE
 LEARNING EXPIRIENCE

 Leadership skill
 Personal development
 Computer knowledge
 Independent working skill
 Management Skill
 Comprehensive knowledge of various management activity in the bank
 Develop proactive qualities for personal growth
 Leaned to use the photocopy machine, printer, and scanner.
 Gained business work experience
 To be socialise with different categories of people in a working environment
 Gained exposure to the demand and challenges of the work place
 Learned how to handle and manage several financial records.

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 CONCLUSION

During the study it has been observed that the Ammembala Service Co-operative
Society Ltd, is an upcoming unit with all promises to prosperous in future. The dynamic and
efficient management of the bank is sure to take this bank to pinnacle success in the coming
future. Also it is very near to the objective of helping farmers. Through the effort of
management and staff, bank can attain the goal. The bank can retain the sales and
profitability in the high if the go in same direction.

The Ammembala Service Co-operative Society provides a different types of

agricultural loans to the formers. The formers have more than 1 acre of land and they raise
more as arrecanut and coconut in their land. People do like to take agriculture loan from
Ammembala Service Co-operative Society because easy availability of loan. The main
purpose of loan taken by the majority of the farmers to improve the agriculture. Even the
farmers are happy with interest rate charged on loan and amount of loan provided is sufficient
for their needs.

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BIBLIOGRAPHY

RECORDS

 Annual record of ASCSs 2003-04 to 2015-16

 The article of BFSCB
 Journals and Magazines of BFSCB

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