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INTRODUCTION

A co-operative society is an association of individuals who voluntarily pool their resources and
carry on the business for their own welfare and not for a profit seeking business. It is democratic
form of organization in which the consumers are the owners of the business. From manager to
clerk all are the owners of the business and all the management is in their hands. In
this organization capitalist is not involved
A co-operative (also known as co-op, cooperative or coop) 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 business. Cooperatives include
non-profit community organizations and businesses that are owned and managed by the people
who use their services (a consumer cooperative) or by the people who work there (a worker
cooperative) or by the people who live there (a housing cooperative), hybrids such as worker
cooperatives that are also consumer cooperatives or credit unions, multi-stakeholder cooperatives
such as those that bring together civil society and local actors to deliver community needs, and
second and third tier cooperatives whose members are other cooperatives.
In short, a co-op can be defined as "a jointly owned enterprise engaging in the production or
distribution of goods or the supplying of services, operated by its members for their mutual
benefit, typically organized by consumers or farmers." Co-operative businesses are typically
more economically resilient than many other forms of enterprise, with twice the number of cooperatives (80%) surviving their first five years compared with other business ownership models
(41%). Co-operatives frequently have social goals which they aim to accomplish by investing a
proportion of trading profits back into their communities. As an example of this, in 2013,retail
co-operatives in the UK invested 6.9% of their pre-tax profits in the communities in which they
trade as compared with 2.4% for other rival supermarkets.[4]
The International Co-operative Alliance was the first international association formed by the
cooperative movement. It includes the World Council of Credit Unions. A second organization
was formed later in Germany, the International Raiffeisen Union. In the United States,
the National Cooperative Business Association (NCBA) serves as the sector's oldest national
membership association. It is dedicated to ensuring that cooperative businesses have the same
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opportunities as other businesses operating in the country and that consumers have access to
cooperatives in the marketplace. A U.S. National Cooperative Bank was formed in the 1970s. By
2004, a new association focused on worker co-ops was founded, the United States Federation of
Worker Cooperatives.

One aspect of a vast movement which promotes the voluntary association of individuals having
common economic needs who combine towards the achievement of the common economic ends
they have in view and who bring into his combination a moral effort and a progressively
developing realisation is the achievement of economic ends. In fact cooperative movement was
started to safeguard consumers from the exploitation of capitalism.
Dr. H.N. Kunzen defines co-operatives as Co-operative is self-help as well as mutual help. It is
a joint enterprise of those who are not financially strong and cannot stand on their legs and
therefore come together not with a view to get profits but to overcome disability arising out of
the want of adequate financial resources.
This definition suits the Indian context. In India, co-operatives are started by the weaker sections
of society for protecting its members from the clutches of profit hungry businessmen. The Indian
Co-operative Societies Act, 1912 defines co-operative in section 4 as Society which has its
objective the promotion of economic interests of its members in accordance with co-operative
principle.

PRINCIPLES OF CO-OPERATIVE SECTOR


1. LEGAL STATUS :
A co-operative Society is a body corporate registered under the applicable state Act with
perpetual succession having a common seal. It can acquire, hold and dispose of properties, enter
into contracts and it can sue and it can be sued.
2. VOLUNTARY ASSOCIATION :
Co-operative Society is essentially an organization or an association of persons who have come
together for the common purpose of economic development or for mutual help.
3. SELF HELP AND MUTUAL HELP :
The Co-operative societies office bearers/executive committee is elected as per democratic
election procedure. The Co-operative Society function under the principle of self help and
mutual help which means each will help for themselves and all will help others.
4. DEMOCRATIC CONTROLS :
The Control of a Co-operative enterprise in not in the hands of capitalists who can corner the
share capital and control the interest in any undertaking which would be a private undertaking.
5. EQUALITY :
In co-operative Sector, the principle of One man one Vote is provided in the statute so as to
ensure that the capital does not dominate the administration of co-operative Society.
6. OPEN MEMBERSHIP :
Any person can apply for the membership of the Society without any discrimination. The
membership is open for all.
7. SOCIAL APPROACH / NO PROFIT MOTIVE :

As the Society is working on democratic principle and the office bearers of the Society will be
functioning like a trustees for the better management of the society and there is no separate
benefits to the executive committee members. Service is the main motto and the profit is not the
main concern in co-operative societies.
8. PROFITS AND RETURNS TO THE MEMBERS :
Co-operative Society is an association of members and certain percentage profits earned by the
society, as decided in the meeting of the General body will be distributed in the form of dividend
to the members.
9. LIMITED INTEREST ON SHARES :
Irrespective of the shareholding, each member has only one vote in the decision-making in the
General body meeting or at the time of election of the committee for management. The shares are
not traded in the stock exchange. The State Co-op. Act also prescribes the maximum amount,
which a member can hold as a share capital in any society. Under M.C.S. Act, 1960 as per
Section 28 other than Government or other society, shall not hold more than 1/5 of the total
capital or interest in shares or exceeding Rs. 20,000/- which the State Government power to
change by way of notification.
10. PERSONAL PARTICIPATION :
The shareholders have to personally attend the meeting or for voting. They are not allowed to
appoint proxies for attending the general body or for voting in the resolution to be passed.
11. EDUCATIONS AND CO-OPERATION :
Every society has to contribute towards the education fund maintained and looked after by the
district co-operative education Board as per the notification issued from time to time for
educating the members or the office bearers of the Society.
12. CO-OPERATION AMONGST CO-OP. INSTITUTIONS :
The funds generated or mobilized through the co-operative societies have to be deposited/
invested in the Co-operative Sector only.

ACT & RULES APPLICABLE


A Co-operative Society functions as per the provisions of
1. Co-operative Societies Act under which the same is registered.
2. Co-operative Societies rules made there under
3. Bye-laws approved by the registrar at the time of registration and amendments made from
time to time and approved by the registrar.
4. Notification and Orders
1. Co-operative Societies Act We have a number of Co-operative Societies Acts functional in
different states like
- Maharastra Co-operative Societies Act, 1960,
- Pondicherry Co-operative Societies Act, 1972,
- Karnataka Co-operative Societies Act, 1959,
- Delhi Co-operative Societies Act, 1972,
- Kerala Co-operative Societies Act etc.
When the area of operation is restricted to one state, the State Co-operative Act & Rules, under
which the society is registered will be applicable.
In a particular state, if Co-operative Act and Rules is not enacted, the Central Act which is
known as The Co-operative Act, 1912 and its rules will be applicable.
When the area of operation of Society is spread in two or more states. The Multi-State Cooperative Societies Act, 2002 and its rules shall be applicable.

2. Co-operative Societies Rules A set of rules is also framed under the respective State Cooperative Act for procedural aspects.
3. Bye-laws Each society also registered with the bye-laws for internal management of the
societies duly approved by the registrar at the time of registration of the society. The bye-laws of
a society constitute a contract between a member and the society and it provide for the
management of the society. The bye-laws are framed within the provisions of the Act and the
rules made there under. Bye-laws include the objects of the society and completely define and
restrict the societys activities, but the rights and liabilities of members are determined by the Act
and Rules and not by the bye-laws as such.
4. Notification and Orders issued from time to time by the Government, or any other Authority as
prescribed under the Act, Rules there under.

PROCEDURE FOR REGISTRATION OF CO-OPERATIVE SOCIETIES


The procedure for registration of society can be explained as the following steps:
1. APPOINTMENT OF CHIEF PROMOTER
The first step to register a Society is that minimum 10 adult individuals from independent
families desiring to form a Society should gather and hold a meeting to
(a) select a provisional committee and elect a Chief Promoter for formation of a society and
(b) select a name for such Society with three alternatives and to pass appropriate resolutions in
that behalf.
c) To collect the entrance fee and share capital from the prospective members.
d) To open the Bank account in the name of chief promoter
e) To decide about area of operation of the Society and
f) To decide about the registered office of the Society
g) To authorize chief promoter to submit the proposal for registration and to do any other thing to
get the society registered.
2. NAME RESERVATION
The second step would be to apply to the registration authority (RA) for reservation of name for
the society and obtain letter from the RA in that connection. The resolutions passed at the
promoters meeting as above should accompany such application for reservation of name as
aforesaid. The letter reserving the name of the society shall be valid for 3 months. The validity of
the name is normally extended on an application for 1 or 2 further terms of 3 months each.
3.BANK ACCOUNT AND DEPOSITS
The third step would be to (a) open a bank account in the name of the proposed Society as per
the RAs directions in that behalf that shall contain in the letter reserving the name and (b)
deposit therein the entrance fee share money and the amount recovered for preliminary expenses
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from the promoters and obtain the certificate from such bank in respect of such deposits.
Normally the directions of the RA are to open account with a proximate branch of the District
Central Co-operative Bank or any Maharashtra State Co-operative Bank or any other urban Cooperative bank.
4. REGISTRATION FEE
The fourth step is to deposit the registration fee with the Reserve Bank of India and to obtain the
receipted challan in that behalf. The registration fee for Housing Society is Rs.2,500/- and for
general Society is Rs.1250/-.
5. REGISTRATION PROPOSAL
The fifth and final step is to prepare and to submit to RA the proposal for registration of the
society. Under Rule 4 of Maharashtra Co-operative Societies Rules the chief promoter should
submit the following documents for registration
a) Application for registration - Form A An application for registration of a society should be
made in form. The specimen of Form A. The application for registration in quadruplicate should
be signed by at least 60% of the promoters members and Chief Promoter should attest their
signatures.
b) Four copies of the proposed bye-laws of the society
c) A list of promoters members, such as the name age occupation current residential a address of
the promoter member the cost of share amount etc.
d) A certificate from the Bank or Banks stating the credit balance therein in favour of the
proposed society;
e) A scheme showing the details explaining how the working of the society will be economically
sound and where the scheme envisages the holding of immovable property by the society, the
description of such property proposed to be purchased, acquired or transferred to the society;
f) Such other documents as may be specified in the model bye-laws, if any, framed by the
Registrar;
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g) The registration fees at the applicable rates,


h) Other documents like affidavit, indemnity bonds, copy of ration cards, public notice in
newspaper etc., as may applicable for different types of society as per the notification issued
from time to time.
6. REGISTRATION PROCEDURE
As per rule 5[1] On receipt of an application under Rule 4 the Registrar shall enter particulars of
the application in the register of application to be maintained in Form B give a serial number to
the application and issue a receipt in acknowledgement thereof. 5[2] The Registrar may give
where necessary opportunity to the promoters to modify the proposed bye-laws before finally
registering the society or rejecting the application for registration of the society. 5[3] On
registering a society and its bye-laws under sub-section (1) of section 9 the Registrar shall as
soon as may be, notify the registration of the society in the Official Gazette and grant to the
society a certificate the Registration number of the society, and the date of its registration. The
registrar shall also furnish the society with a certified copy of the bye-laws approved and
registered by him.
7. REFUSAL OF REGISTRATION
Where any society does not furnish the information in regard to the society as required by the
Registrar or fulfill any of the conditions laid down in the Act or these Rules, Notification or
orders, the Registrar may refuse to register that society.
8. APPEALS
Under section 152 an appeal against an order or decisions of registration of society, refusal of
registration of society shall lie
(a) if made or sanctioned or approved by the Registrar, or the Additional or Joint Registrar on
whom powers of the Registrar are conferred, to the State Government.
(b) If made or sanctioned by any person other than the Registrar, or the Additional or Joint
Registrar on whom the powers of the Registrar are conferred to the Registrar.

Ultimately a remedy of Writ Petition under Article 226 or 227 of the Constitution of India is
always available even to a Co-operative society or a person aggrieved in an extraordinary
circumstances. Which means if the decision of State government on the appeal made by the
aggrieved party is not acceptable a Writ Petition can be filled in the High Court and then
Supreme Court.

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TYPES OF SOCIETIES
A Society is categorized on the basis of its objects. There are various types of societies that can
be formed under the Act under which it is registered: Under Maharashtra Co-operative Societies
Act, 1960 following types of Societies can be registered :
1. Agricultural Marketing Society:
As per section 2(1) agricultural marketing Society means a society
(a) The object of which is the marketing of agricultural produce and the supply of implements
and other requisites for agricultural production, and
(b) Not less than three-fourths of the members of which are agriculturists, or societies formed by
agriculturists.
2. Consumer Society
As per Section 2(9) Consumers Society means a society, the object of which is
(a)The procurement, production or processing, and distribution of goods to, or the performance
of other services for, its members as also other customers, and
(b) the distribution among its members and customers, in the proportion, prescribed by rules or
by the bye-laws of the society, of the profits accruing from such procurement, production or
processing, and distribution.
3. Co-operative Bank
As per section 2(10) Co-operative bank means a society which is doing business of banking as
defined in clause (b) of sub-section (1) of section 5 of the Banking Companies Act, 1949 and
includes any society which is functioning or is to function as (an Agriculture and Rural
Development Bank) under Chapter XI.

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4. Central Bank
As per section 2(6), Central Bank means a co-operative bank, the objects of which include the
creation of funds to be loaned to other societies; but does not include the urban co-operative
bank.
5. Crop Protection Society
As per section 2(10-A), Crop Protection Society means a society the object of which is
protection of the crops, structures, machinery, agricultural implements and other equipment such
as those used for pumping water on the land.
6. Farming Society
As per section 2(12),Farming Society means a society in which, the object of increasing
agricultural production, employment and income and the better utilization of resources, lands are
brought together jointly cultivated by all the members, such lands
(a) being owned or leased to the members (or some of them), or
(b) coming in possession of the society in any other manner whatsoever.
7. General Society
As per section 2(15),General Society means a society not falling in any of the classes of
societies defined by the other clauses of this section.
8. Housing Society
As per section 2(16),Housing society means a society, the object of which is to provide its
members with open plots for housing, dwelling houses or flats; or if open plots, the dwelling
houses or flats are already acquired, to provide its members common amenities and services.

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9. Federal Society
As per section 2(13),Federal society, means a society(a) not less than five members of which are themselves societies, and
(b) in which the voting rights are so regulated that the members who are societies have not less
than four-fifths of the total number of votes in the general meeting of such society
10. Irrigation Society
As per section 2(16-A),Lift Irrigation Society means a society, the object of which is to
provide water supply, by motive power or otherwise to its members, for irrigation and otherwise.
11. Process Society
As per section 2(22),Processing society means a society, the object of which is the processing
of goods.
12. Producers Society
As per section 2(23),Producers Society means a society, the object of which is production and
disposal of goods or the collective disposal of labour of the members thereof.
13. Resource Society
As per section 2(25),Resource Society means a society, the object of which is obtaining for its
members of credit, goods or services required by them.
14. Apex Society
As per section 2(2) of M.C.S. Act, Apex Society means a society, (a) the area of operation of which extends to the whole of the State of Maharashtra
(b) the main object of which is to remote the principal objects of the societies affiliated to it as
Members and to provide 6 for the facilities and services to them and
(c) which has been classified as an apex society by the Registrars
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Rules For Balance Sheet/ Profit And Loss A/c


Rule 61
The committee of every society has to prepare annual statement of accounts showing,
1. Receipts and disbursements during the previous year
2. The profit and loss account for the year
3. The balance sheet as at the close of the year within 45 days of the close of the every co
operative year or within such extended period as may be allowed by the Registrar.
Section 75
At every Annual General Meeting (AGM), the Committee shall lay before the society ..
and a balance sheet and profit and loss account for the year in the manner prescribed by the
Registrar by general or special order for any class or classes of society
Rule 62
The balance sheet and profit and loss account to be laid before the AGM of the society shall be
ordinarily in Form N Provided that, it shall be competent for the Registrar to permit a society or
class of societies to adopt such other form as he may deem fit.
Section 75 (3)
Every balance sheet laid before the society in AGM a report of the Committee needs to be
attached about
(a) The state of the societys affairs
(b) The amounts, if any, which it proposes to carry to any reserve
(c) The amounts, if any, which it recommends for payment as dividend, bonus*, or honoraria to
honorary workers
The report of the Committee has to deal with any changes, which have occurred during the year
for which the accounts are made up, in nature of the business of the society.
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The report of the Committee needs to be signed by its Chairman or any other member authorized
to sign on behalf of the society
Section 75 (4)
It is required that before each AGM the balance sheet, the profit and loss account and the audit
memorandum submitted by the auditor (Statutory Auditor) appointed under section 81 is kept for
adoption.
Section 65(1)
The society is required to construct its relevant annual financial statements and arrive at net
profit or loss in the prescribed manner
Section 65(2)
Society can not appropriate any part of the profit except with the approval of the AGM and in
conformity with the Act, Rules and the Bye-laws.
Rule 49A
Net Profit of the society is required to be calculated by deducting following,
1. Interest accrued / accruing on over due loan amounts (excepting such amount on loans against
fixed deposit and gold)
2. Interest payable on loans and deposits
3. Establishment charges
4. Audit / supervision fees
5. Working expenses, repairs, rents, taxes etc. payable
6. Depreciation
7. Bonus payable to employees under Payment of Bonus Act, 1965
8. Provision for payment of Income Tax
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9. Provision for bad and doubtful debts


10. Provision for share capital redemption fund
11. Provision for investment fluctuation fund
12. Provision for retirement benefits for employees
13. Provision for any other claims admissible under any other law
14. Amounts paid / payable under directions / notifications from the State Govt.
15. Provision for bad debts / revenue losses not adjusted against any fund created out of profits
16. Contribution to sinking fund or any fund as per the Act, Rules or Bye-laws
17. Provision required for depreciation in the value of any security bonds or shares held by the
society as part of its investment
Section 66 (1) and (2)
From the net profit arrived at as per Rule 49A deductions 25% of net profit is required to be
transferred as Reserve Fund and then only the remaining net profit is available for appropriation
of profit as per Rule 50
Rule 50
The net profit available after deducting reserve fund is available for appropriation as under
1. Development fund
2. Dividend equalization fund
3. Any other Fund created under the Byelaws or as permissible
Section 67
The society can not declare dividend above 15% except with the prior sanction of the Registrar

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Rule 52 (4)
The society can not declare a dividend at a rate exceeding that recommended by its committee
RBI restriction
A Co-operative Bank not having Grade I from the RBI needs prior approval from RBI for
payment of dividend
Rule 52 (1) and (2)
The society may create out of its profits, Bonus Equalization Fund for payment of bonus to
persons other than its paid employees who are not its members Dividend Equalization Fund. The
society may draw from this fund in any year only when it is unable to maintain a uniform rate of
dividend it has been paying during the last preceding five years.

Books
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Books to be maintained by co-operative Societies co-operative Society


Rule 39 of the DCS Rules, 2007 specifies Accounts and other books to be maintained by cooperative societies: Every co-operative society shall keep and maintain the following books of
accounts for the purpose of recording the business transacted by it, namely:(a) Minutes book for recording the proceedings of the general body,Committee/any
subcommittee
(b) Register of applications for membership containing the name and address of the applicant
,number of shares applied for, and in case of refusal, the date of communication of the decision
refusing application of the applicant
(c) Membership Register, containing the date of membership, name of member, name of
father/husband, address of member, no. of shares purchased, name of the nominee with
relationship, date of cessation of membership, signature of the member and remarks. In case of
housing co-operative societies, the Bank account of the member and address of the bank, the
PAN, Electoral photo identity card (EPIC), certificate of gazetted officer attesting signature and
photograph of member and an affidavit as prescribed shall be maintained by cooperative housing
society
(d) Share allotment register along with details of amount paid therefore
(e) Cash book, showing daily receipts and expenditure, and the balance at the end of each day
(f) Receipt book, containing forms in duplicate, one of each set to be issued for money received
by the society and the other to serve as counter foil
(g) Voucher file, containing all vouchers for contingent expenditure incurred by the society,
numbered serially and filed chronologically
(h) Ledger of borrowings, showing deposits and other borrowings of all kinds
(i) In the case of societies issuing loans,

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(a) Loan ledger, showing the number and date of disbursement of each loan issued to member,
the amount of loan, the purpose for which the loan is granted and the date or dates of repayment,
distinguishing principal and interest
(b) Liability/surety register showing the indebtedness of each member to the society whether on
account of loan taken directly by the member or on account of loan for which the member stands
as surety
(j) In the case of a co-operative society, if the working capital exceeds twenty thousand rupees, a
general ledger showing receipts and disbursements and the outstanding under various heads from
day to day
(k) In the case of a co-operative bank, a register of fluid resources showing the immediate

liabilities of the co-operative bank and the extent of fluid resources available to which the
Banking Regulation Act, 1949 (10 of 1949) applies according to the instructions of the Reserve
Bank of India;
(l) Monthly register of receipts and disbursements; and
(m) Register of dividend.

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List Of Co-operative Societies


I.

Apna Bazaar Co-operative

It started on 1st May 1948. Apna Bazaar is probably the oldest and largest consumer co-operative
multi-state society with a customer base of over 12 lakhs. The Rs 140-crore retail chain, that, for
over 55years remained largely middle-class, Apna Bazaar has 80 outlets in Mumbai, Thane and
the neighboring Konkan region. It has recently opened its first shop outside the state in Goa. It
recorded a turnover of Rs 127 crore for the year 2003-04.
Role of Apna Bazaar:
Apna bazaar plays a vital role by market intervention during the shortages of essential
commodities. The distribution of these items is taken up by the Apna Bazaar at a loss to fulfill
its social commitments. At times of need, Apna Bazaar has diverted its manpower and resources,
even at the cost of its own commercial interest, for the public good.
Members Benefits:

Dividend on shares at 12% to individuals, society and government.

Purchase rebate on share amount 10% each year.

Attractive rate of interest up to 9% on fixed deposit by the members

Sources of Income:

Retailing is their core activity and a major part of their income come from the various
retail outlets.

They supply commodities like Dal, Pulses, Food grains, Cereals to Govt. Institutions,
Hospitals for their Canteens. A 30 Days credit is given to them.

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They also earn income from the company racks that they display in their outlets. These
racks contain the products of the particular company and the in turn pays Apna Bazaar for
displaying these racks. E.g. Maggie, Colgate, Pepsodent, Vicks, Nescafe etc.

They provide space to companies e.g. MEPL (Electronic goods) in order to display and
sell their goods by charging rent for space provided.

Provide place to banks for opening ATM center by charging rent since almost all the
outlets are owned by Apna bazaar

Facilities Offered By Apna Bazaar to Consumers:

Quality products at reasonable prices.

Variety of items under one roof.

24 hours drugs outlets.

Self-service counters

Items of high quality tested by its quality- testing laboratory.

Display boards and price lists at various counters to enable the customer to make his/her
choice.

Home delivery, but this facility is only available for purchase from branches.

Discount sales periodically on various items

Target segments:
The store was started keeping in mind the lower middle class section of the society. But
gradually it has moved up the consumer ladder with the inclusion of the middle class as its
target consumer. Now slowly it is drawing the upper class towards it. It now caters to almost
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all the segments of the society depending on the location. In order to attract the upper class
& to combat growing competition in the retail industry changes are being made.
II.

The Shamrao Vithal Co-op. Bank Ltd. (SVC Bank),


established in 1906, is one of the oldest Urban Co-operative Bank in India. The bank was
founded when co-operation was just started to begin in the country. It was set up with the
primary objective of assisting the less fortunate members of the community in its
economic enterprises. This was also to encourage savings and to create funds for
providing financial aid to deserving members.
Rao Bahadur Shripad Subbarao Talmaki was the main architect of the Bank. The Bank
was originally registered as a Co-operative Credit Society on 27 December 1906

Major milestones

1907 - Fixed Deposits, Savings Bank Deposits and Cumulative Deposits Scheme
introduced

1910 - First Co-operative Stores

1911 - Facilities for remittance by Draft made available to Members & Education Fund

1913 - Cash Credit Loan Scheme started

1915 - First Co-operative Housing Society in Mumbai

1927 - idelity Guarantee Fund

1931 - Distress Relief Fund

1954 - Staff Gratuity Fund

1956 - Facilities thrown open to all communities

1964 - Introduction of Safe Deposit Vaults


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1966 - Industrial Financing

1975 - Introduction of Cash Certificates

1988 - "Scheduled Bank Status" conferred on the Bank

2000 - Deposits cross 1000 crores

2002 - Setting up of Corporate Office - SVC Tower at Vakola

2003 - Implementation of Genius I Core Banking Solution across all the branches

2006 - SVC Bank is offered AD-I License in & SVC Bank is permitted to sell Core
Banking software services to smaller co-operative Banks

2006 - 1st Software sale successful

2010 - SVC Bank crosses Software sales services to 25 Banks

2011 - SVC Bank opens 100th Branch at Bibwewadi

2014 - SVC Bank opens 150th Branch at Chembur (CG Road)

III.

Indian Farmers Fertiliser Cooperative Limited


Indian Farmers Fertiliser Cooperative Limited, also known as IFFCO, is the world's
largest fertiliser cooperative federation based in India which is registered as a Multistate
Cooperative Society. IFFCO has 40,000 member cooperatives. IFFCO has been ranked37 in
top companies in India in 2011 by Fortune India 500 list. On 3 November 1967 Indian
Farmers Fertiliser Cooperative Limited (IFFCO) was registered as a Multi-unit Co-operative
Society. It got deemed recognisation under the provisions of Multistate Cooperative Societies Act
1984 & 2002 late

Plants
Initially, IFFCO commissioned an ammonia urea complex at Kalol and the NPK/DAP plant
at Kandla both in the state of Gujarat in 1975. Another ammonia urea complex was set up
at Phulpur in the state of Uttar Pradesh in 1981. The ammonia urea unit atAonla was
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commissioned in 1988. Recently, IFFCO has acquired an NPK/DAP and Phosphoric acid
fertiliser unit at Paradeep in Orissa in September 2005. The marketing of IFFCO's products is
channelled through cooperative societies and institutional agencies in over 29 states and
union territories of India.
Production and Sales
During the year 200809 IFFCO produced 7,168,000 tonnes of fertiliser material registering
overall capacity utilisation of 98 percent for nitrogenous and 53 per cent for phosphate
fertiliser. It contributes 21.4% of country's total nitrogenous fertiliser production and 27% of
total phosphate fertiliser production in the same period. Plant productivity during the year
stood at 1373 tonnes/person. The Society has also achieved another important landmark in
the field of energy conservation by clocking overall annual energy of 5.943 Gcal/tonne of
urea. The Society has cloaked an all-time high sales of 11,258,000 tonnes of fertilizer during
200809

IV.

Gujarat Co-operative Milk Marketing Federation Ltd

the Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF), which today is jointly
owned by 3.6 million milk producers in Gujarat.
Dr. Verghese Kurien, founder-chairman of the GCMMF for more than 30 years (19732006),
is credited with the success of Amul The GCMMF is the largest food products marketing
organisation of India. It is the apex organisation of the dairy cooperatives of Gujarat. It is the
exclusive marketing organisation for products under the brand name of Amul and Sagar.Over
the last five and a half decades, dairy cooperatives in Gujarat have created an economic
network that links more than 3.1 million village milk products with millions of consumers in
India. Gujarat Cooperative Milk Marketing Federation Ltd. (GCMMF), is India's largest food
product marketing organisation with annual turnover (201415) US$ 3.4 billion. Its daily
milk procurement is approx 14.85 million lit per day from 18,536 village milk cooperative
societies, 17 member unions covering 33 districts, and 3.37 million milk producer members.
24

More than 70% of the members are small or marginal farmers and landless labourers
including a sizeable population of tribal folk and people belonging to the scheduled castes.

The main functions of the federation are as follows:

Marketing of milk and milk products processed/manufactured by Milk Unions,

Establish a distribution network for marketing of milk and milk products,

Arranging transportation of milk and milk products from the Milk Unions to the market,

Creating and maintaining a brand for marketing of milk & milk products,

Providing support services to the Milk Unions and members like technical inputs,
management support and advisory services,

Pooling surplus milk from the Milk Unions and supplying it to deficit Milk Unions,

Establish feeder-balancing dairy plants for processing the surplus milk of the Milk
Unions,

Arranging for common purchase of raw materials used in manufacture/packaging of milk


products,

Decide on the prices of milk and milk products to be paid to Milk Unions,

Decide on the products to be manufactured at Milk Unions and capacity required for the
same.

Conduct long-term milk production, procurement and processing as well as marketing


planning.

Arranging finance for the Milk Unions and providing them technical know-how.

25

Designing and providing training in cooperative development and technical and


marketing functions.

Conflict resolution and keeping the entire structure intact

FORMAT OF PROFIT AND LOSS AC(N TYPE)


Previous

Income

Year

Current
Year

By

Members Contribution

***

Electricity Charges

***

***

Maintenance Charges

***

***

Municipal Taxes

***

***

Parking Charges

***

***

Sub-letting Charges

***

***

Water Charges

***

***

Building Repair Fund

***

***

Municipal Tax Arrears

***

***

Sinking Fund

***

By

Interest Received

***

(a) On loans and advances

***

***

(b) On investments

***

Dividend received on shares

***

Commission

***

***

By

***

By
By

Miscellaneous Income

***

(a) Share Transfer fees

***

***

(b) Rent

***
26

Previous

Expenditure

Year
***
***
***

Year
T
o

***
***
***

***
***

T
o

(c) Rebate in interest


Interest
(d) Sale of forms
(a) Paid
(e) Other items
(b) Payable
By Land Income and Expenditure accounts
Bank Charges

T
o

Salaries and Allowances of Staf

***

T
o

Contribution to Staf Provident Fund

***

T
o

Salary and Allowances of Managing Director

***

T
o

Attendance fees and travelling expenses of Directors


and Committee Members

***

T
o

Travelling expenses of staf

***

T
o

Rent, rates and taxes

***

T
o

Postage, Telegram and Telephone charges

***

T
o

Printing and Stationery

***

T
o

Audit fees

***

T
o

General expenses

***

T
o

Bad Debts written of or provision made for bad


debts

***

T
o

Depreciation on fixed assets

***

T
o

Land Income and Expenditure account

***

T
o

***

T
o

***

***

Curre
nt

Other Items

Net Profit carried to Balance Sheet

***
***
***

***
***
***

***
***

***

***
***
***
***
***
***
***
***
***
***
***
***
***
***
27
***

FORMAT OF BALANCE SHEET AS ON


Previous
Year

***

***
***
***
***
(***)
***

Liabilites

Current
Year

I. Share Capital:
Authorised Share Capital
Issued Subscribed & Paid up Capital
Purchased by the Govt.
Purchased by Co-op Societies
Purchased by Individuals
Shares in Advance
Less: Calls in arrears
Add: Calls in advances

***

***
***
***
***
(***)
***

I-A. Subscription towards shares:

***
***

***
***
***
***
***
***
***
***
***

II. Reserve Fund and Other Funds:


(a) Statutory Reserve Funds
(b)Building Fund
(c) Special Development Fund
(d) Bad and Doubtful Debts Reserve
(e) Investment Depreciation Fund
(f) Dividend Equalisation Fund
(g) Bonus Equalisation Fund
(h) Reserve for overdue interest
(i) Other Funds

***

III. Staff Provident Fund:

***
***
***
***

IV. Secured Loans:


(a) Debentures
(b) Loans, overdrafts and cash credits from banks
(c) Loans from Government
(d) Other secured loans

***
***
***
***
***

***

***
***
***
***

V. Unsecured Loans:
(a) Loans, cash credits and overdrafts from Central Banks
(b) From Government
(c) From others
(d) Bills payable

***
***
***
***

***

***
***
***
***
***
***
***
***
***

***
***

VI. Deposits:
28

***
***
***
***
***
***
***

***
***
***
***

(a) Fixed Deposits


(b) Recurring Deposits
(c) Thrift or Saving Deposits
(d) Current deposits
(e) Deposits at call
(f) Other deposits
(g) Credit balance in cash credit and overdraft accounts
VII. Current Liabilities and Provisions:
(a) Sundry creditors
(b) Outstanding creditors
(i) for purchases
(ii) for expenses including salaries of staff, rent, taxes,
etc.
(c) Advance, recoveries for the portion for which value
has still to be given, viz. unexpired subscriptions,
premiums, commission, etc

***
***
***
***
***
***
***

***

***
***
***
***

***

***

VIII. Unpaid Dividends:

***

***

IX. Interest accrued due but not paid:

***

***

X. Other Liabilities (to be specified):

***

***

***

29

Previous
Year

***
***
***
***
***

Assets

I. Cash and Bank balances


(a) Cash on hand
(b) Cash in banks
(i) Current Account
(ii) Savings Banks Account
(iii) Call Deposits on Banks

***

II. Investments
(a) Government Securities
(b) Other Trustee Securities
(c) Non-Trustee Securities
(d) Shares of other co-operative Societies
(e) Shares, Debentures or Bonds of companies registered
under the Companies Act
(f) Fixed Deposits

***
***

III. (1) Investment of Staff Provident Fund


(2) Advances against Staff Provident Fund

***
***
***
***
***

***
***
***
***
***

IV. Loans and Advances:


1. (a) Loans
(b) Overdrafts
(c) Cash credits
(i) against pledge of goods
(ii) against hypothecation of goods
(iii) clean
2. Loans due by Managing Committee Members
Loans due by Secretary and other employees

***
***
***

***
***
***

***
***

Current
Year

***
***
***
***
***

***

***
***
***
***
***
***

***

***
***

***

***
***
***
***
***
***
***

***

V. Sundry Debtors
(1) Credit Sales
(2) Advances
(3) Others

***
***
***

***

VI. Current Assets:


(1) Stores and spare parts
(2) Loose tools
(3) Stock-in-trade

***
***
***
30

***

(4) Works in progress

***

***

***
***
***
***
***
***
***
***
***

VII. Fixed Assets:


(a) Land and building
(b) Leaseholds
(c) Railway siding
(d) Plant and Machinery
(e) Loose tools, tackles and other equipments
(f) Dead stock
(g) Furniture and fittings
(h) Livestock
(i) Vehicles

***
***
***
***
***
***
***
***
***

***

VIII. Miscellaneous expenses and losses:


***

(1) Goodwill

***

***

***

***

(2) Preliminary expenses


(3) Expenses connected with the issue of shares and
debentures, including underwriting charges, brokerage,
etc.
(4) Deferred revenue expenditure

***
***
***

IX. Other items


(a) Prepaid expenses
(b) Interest accrued but not due
(c) Other items (to be specified)

***

X. Profit and Loss Account:


Accumulated losses not written off from the reserve or
any other fund

***

***

XI. Current losses

***

***

***

***
***

***

***
***
***

***

***

31

AUDIT OF CO-OPERATIVESOCIETY
1) Registers to be verified
a) Property & Investment Register
i) Situation
ii) Date of acquisition
iii) Cost price and present market price. If the difference between two is significant note should
be given regarding present market value
iv) Depreciation
v) Face value
vi) Interest due dates, interest realised
vii) Sales, purchases, profit or loss on sale
b) Fixed Deposits Register
i) Date of acceptance
ii) Date of maturity
iii) Interest due date
iv) Repayment
c) Surety Register
i) Loans are given against the personal security of the debtor, in addition to a surety or guarantee
given by two members.
d) Register of recovery of loan from salaries & directly by receipts from members.
e) Loan disbursement register
f) Members register and their pass books
i) Loan given and its repayment
ii) Confirmation of loan balances in person
32

2) Share holding
a) A member other than registered societies can hold least of the two:i) 20% of total number of shares;
ii) Shares of value of Rs. 1000
3) Loan
a) Loan can be given only to members
b) Loan can be given to another registered society by passing special resolution
4) Investment of Funds
a) Investment can be in one or more of following
i) In the Central or State Co-operative bank
ii) In the shares, securities, bonds or debentures of any other society with limited liability
iii) In co-operative banks as approved by the registrar
5) Appropriation of profits
a) At least 25% of the profits should be transferred to reserve funds, before distribution of
dividends or bonus to members
b) Registrar can reduce transfer not below 10%
6) Contribution to charitable purpose
a) With the sanction of the registrar, an amount not exceeding 10% of net profits remaining after
compulsory transfer to reserve fund
7) Overdue debts
a) It has to be classified as overdue from six months to five years and more than five years.
b) Analysis of overdue debts from the point of view of recovery and classify as good or bad
c) Analyse provision for doubtful debts
d) Compare the percentage of overdue debts to the working capital and loans advanced with that
of last years and see the trend
8) Overdue interest
33

a) An overdue interest reserve is created and credit of overdue Interest credited to interest
account is reduced.
b) It is excluded while calculating profit
TAXATION OF CO-OPERATIVE SOCIETIES
CO-OPERATIVE SOCIETY IS A SEPARATE ASSESSABLE ENTITY
Section 2(19) of the Income Tax Act defines a co-operative society as a co-operative
society registered under the Co-operative Society Act 1912 or under any law for the time being
in force in any State for the registration of Co-operative societies. For the purposes of the income
tax Act, a regional rural Bank is deemed to be a Co-operative societies- circular No. 319 dated
11.1.1992.Thus only registered co-operative societies are enable to be assessed under special
status of co-operative society under the Income Tax Act.
This form of organization is normally formed with the basic idea of uniting various
individuals to enable them to get goods and services at reasonable prices. This form of
organization is best suited for persons with small means to combine their resources and efforts in
the promotion of production, distribution or consumption of goods or services in which they
have a common interest. Just like any other assessee, a co-operative society can also carry on
business activities, subject of course to the bye laws, regulations and the legislations governing
them. There are large number of industrial co-operative socities, co-operative consumer stores,
co-operative transport societies, which carry on regular profit-earning activity in the same way as
any other business undertaking. For purposes of taxation, it is treated as a separate assessable
entity.
It may be stated here that though for taxation purposes, the status of a society is to be
taken as an AOP, sections 67A and 86 of the Act have been specifically excluded from
application to the case of its members. Besides, as provided in Part I of the First Schedule to an
annual Finance Act, a co-operative society is taxed at rates, which are different from those
applicable to an AOP. It may be seen from Part I of the First Schedule to an annual Finance Act,
wherein though individuals, Hindu undivided family, AOPS or body of individual, whether
incorporated or not, or every artificial juridical person referred to an section 2(31) (vii) of the
Act, are chargeable at the rates prescribed under paragraph B thereof.
34

PROVISIONS UNDER THE INCOME-TAX ACT, 1961


Under the Income-tax Act, 1961, there are a number of provisions, which relate to the cooperative societies, and related main provisions are contained in sections 2(19),80 P and 194,
197. Section 2(19), co-operative society means a co-operative society, registered under Cooperative Societies Act, 1912 or under any other law for the time being in force in any state for
the registration of co-operative Societies, Under section 80 P, under which exemptions and
deductions have been provided in respect of various types of income being earned by cooperative societies.
It may also be noted that the provisions of section 194 A which require deductions of
income tax at source from interest other than interest on securities, credited or paid, where the
aggregate payment in any financial year exceeds Rs. 10,000/- do not apply to cases of interest
paid by co-operative banks (including co-operative land mortgage banks and co-operative land
development banks) or to a member of the society on deposits made with the society.
INCOMES OF CO-OPERATIVE SOCIETY
A co-operative society may mainly have the following types of income :
(I)
(II)
(III)
(IV)

Interest on securities
Income from house property,
Capital gains income,
Income from business,

Most of the societies, now-a-days are found to be carrying on business activity. The profits and
gains from such business are to be determined according to the regularly employed method for
such computation and according to accepted commercial principles. The method adopted by the
society must be consistently followed every year. Thus a co-operative society may adopt cash
basis method or mercantile basis method. What is required is that the same system should
normally be continued.

35

EXEMPTION TO CO-OPERATIVE SOCIETY


1. any income of a co- operative society formed for promoting the interests of the members
of either the Scheduled Castes or Scheduled Tribes or both referred to in clause (26B):
Provided that the membership of the co- operative society consists of only other cooperative societies formed for similar purposes and the finances of the society are
provided by the Government and such other societies;].
2. Section 80 P provides certain exemptions to co-operative societies.
Where the co-operative society is also entitled to the deductions available under sections
80HH, 890HHA, 80HHB, 801, 80J, 80JJ and 80JJA. The deduction under this section
[i.e. 80 P (I)] shall be allowed with reference to the total income as reduced by the
deduction allowable respectively uinder sections 80HH, 80HHA, 80HHB, 80HHC, 80J,
80JJ and 80I.
DEDUCTION UNDER SECTION 80 P
The following amounts are allowed as deduction under this section. However, from the
assessment year 2007-08 onwards, deduction under section 80 P is not available to a co-operative
bank. A primary agricultural credit society, a primary co-operative agricultural and rural
development bank will continue to get deduction under section 80P.
The whole of the amount of the profits attributable to any one or more of the following activities
in the Case of a co-operative society engaged in:(i)

Carrying on the business of banking or providing credit facilities to its members,

(ii)
(iii)
(iv)

or
A cottage industry, or
The marketing of the agricultural produce grown by its members, or
The purchase of the agricultural implements, seeds, live-stock or other articles

(v)

intended for agricultural for the purpose of supplying them to its members, or
The processing, without the aid of power, of the agricultural produce of its

(vi)

members, or
The collective disposal of the labour of its members, or
36

(vii)

Fishing or allied activities, that is to say, the catching, curing, processing,


preserving storing or marketing of fish or the purchase of materials and equipment
in connection therewith for the purpose of supplying them to its members,

The whole of the amount of profits and gains of business attributable to any one or more of
such activities
However, in case of a co-operative society falling under sub-clause (vi) or sub-clause (vii),
the rules and bye-laws of the society restrict the voting rights to the following classes of its
members, namely :1. The individuals who contribute their labour or, as the case may be, carry on the
fishing or allied activities;
2. The co-operative credit societies which provide financial assistance to the society;
3. The state government.
(A) In the case of a co-operative society, being a primary society engaged in supplying milk,
oil-seeds, fruits or vegetables raised or grown by its members to(i)
A federal co-operative society, being a society engaged in the business of
(ii)
(iii)

supplying milk, oil-seeds, fruits or vegetables, as the case may be ; or


The government or a local authority ;or
A government company as defined in section 617 of the companies Act, 1956 or a
corporation established by or under a central, state or provincial Act (being a
company or corporation engaged in supplying milk, oil seeds, fruits or vegetables,
as the case may be, to public), the whole of the amount of profits and gains of

such business;
(B) In the case of a co-operative society engaged in activities other than those specified in
clause (A) or clause (B) either independently of, or in addition to, all or any other activities
so specified, so much of its profits and gains attributable to such activities as does not
exceed,(i)
Where such co-operative society is a consumers co-operative society, Rs.100,000;
(ii)

and
In any other case, Rs. 50,000

Here, consumers co-operative society means a society for the benefit of the consumers;

37

(C) In respect of any income by way of interest or dividends derived by the co-operative
society from its investments with any other co-operative society, the whole of such
income;
(D) In respect of any income derived by the co-operative society from the letting of godowns
or warehouses for storage, processing or faciliting the marketing of commodities, the
whole of such income;
(E) In the case of a co-operative society, not being a housing society or an urban consumers
society or a society carrying on transport business or a society engaged in the
performance of any manufacturing operations with the aid of power, where the gross total
income does not exceeed Rs.20000/- the amount of any income by way of interest on
securities or any income from house property, chargeable under section 22.

NO WEALTH-TAX LIABILITY ON A CO-OPERATIVE SOCIETY


As per section 3(1) of the Weath-tax Act, 1957, only individuals. Hindu undivided
families and companies are liable to wealth-tax. It clearly implies that no wealth-tax is
chareable in the case of co-operative society.
LOWER OR NIL RATE OF TDS
A co-operative society like any other assessee may make an application to the
assessing officer under section 197 of the act, fro deduction of tax at lower rate in case, the
income likely to be received so warrants. The relevant rules are 28, 28AAand 29.
Similarly, a co-operative society may furnish declaration in duplicate under section
197A (IA) of the act, to the person responsible for paying any income of the nature referred
to section 193 (interest on security), section 194 A (interest other than interest on securities)
for no deduction of tax at source. The relevant form is 15H, which has to be verified in the
prescribed manner to the effect that the tax on the estimated total income of the previous year
will be nil.
RATE OF INCOME TAX

38

Rates of income tax applicable to co-operative societies for the assessment year 20142015 are given below for the convenience of co-operative societies to work out their liability
to tax.
Income Tax

Rate

1. On total income upto Rs. 10,000


2. Total income in excess 10,000 upto 20,000
3. Total income in excess of 20,000

10%
20%
30%

And education cess is 2% and Secondary higher education cess is 1%.


For the assessment year 2014-2015 surcharge is 10 % of income tax, where taxable income
exceeds Rs 1 crore.
Alternative Minimum Tax :- Tax Payable by a co-operative cannot be less than 18.5%
(surcharge + education cess + SHEC) of adjusted total income as per see 115 JC Since A.Y.
2013-2014.

Annual Reports
39

THE MOGAVEERA CO-OPERATIVE BANK LTD.


Registered & Administrative Office 203, Venkatesh Chambers, G.T. Marg (Prescot Road),
Fort, Mumbai-400 001.
Dear Members
PRESENTATION OF THE ANNUAL REPORT
The Board of Directors of your Bank have pleasure in presenting to you the 69th Annual Report
on the business and operational results of your Bank together with Audited Balance Sheet and
Profit & Loss Account for the year ended 31st March 2014.
Economic Scenario
The growth of the Indian Economy has been slow i.e. less than 5% in the last 2 years. The Fiscal
deficit as projected by the Finance Minister is at 4.1% of GDP .The Consumer price index of
July improved to 7.31% as against 9.87% year on year indicating that the inflation would ease
considerably in the following months. The factors mainly contributing to the slow down of the
Indian Economy would be slow down in capex, global downturn and monetary tightening. The
RBI Governor has expressed confidence that the CPI would come down to 6 % by January, 2015.
Movement of the monetary aggregates indicate that the growth of broad money and credit have
been below the indicative levels set by RBI.
During 2013-14. Liquidity conditions tightened from the second week of November on account
of a build-up in the Centres cash balances, increase in currency demand, and structural pressures
brought on by the widening wedge between deposit growth and credit growth. Anticipating
liquidity pressures, the RBI lowered the CRR and conducted open market operations .Despite
these measures, the liquidity deficit in the system remained above the comfort level of the RBI.
However, with the reform measures undertaken recently to improve investment sentiments in the
economy as well as to improve the fiscal situation, along with the expectation of improvement in
the global economic scenario, there is a possibility of revival of growth in 2014-15. The overall
growth rate is expected to be in the range of 6.1 to 6.7 per cent in 2013-14. Of course, these
40

projections assume that monsoon is normal, the rate of inflation declines further and that the
anticipated mild recovery of global growth takes place.
Advances
Your Bank has deployed funds judiciously and due to lack of credit off take, advances has
increased marginally from ` 34264.45 Lacs to ` 35512.37 Lacs during 2013-14 registering a
growth of 3.64%. Your Bank has continued to advance various types of loans such as Home
Loans, Mortgage Loans, Loan against Gold Ornaments, Loan / Overdraft against tangible
securities, Easy Loan for employed persons, Home Renovation / Improvement loan to members
in accordance with the Bye-Laws / Loan Rules and RBI guidelines.
Share Capital & Membership
During the year your Bank has admitted 1217 new members. After deletion of 834 members
who have ceased to be members on account of death, resignation and transfer of shares, the total
membership stood at 45576 at the end of the current year as against 45193 in the previous year.
Nominal membership stood at 2997 as against 2894 members last year.
Loan to Staff
Your Bank has been sanctioning Housing Loans to staff at concessional rate of interest ranging
from 5% to 6 % p.a. as the case may be as per the Memorandum of Settlement subject to
overall ceiling of 2% NDTL of the Bank. In addition to Housing Loan, your Bank has also been
sanctioning Surety Loan to Staff at a concessional rate of 6% p.a. Additionally Bank has also
introduced Staff Overdraft (SOD) facility to the staff members carrying interest @ 10.5% p.a.
The total outstanding in all the staff loans together aggregates to Rs.585.73 Lacs as on
31/03/2014.
Appointment of CEO
After the retirement of CEO, Mr K.Sivaram , the Board appointed Mr.M.C.Shetty,a senior
Banker as the new CEO of the Bank in November 2013. Mr M.C.Shetty who has around 42
years of experience, had held several important positions including that of the Managing Director
41

of Abhyudaya Cooperative Bank ltd. After his retirement, the Reserve Bank of India in
recognition of his meritorious service and astute banking prowess appointed him as the
Administrator of The Bombay Mercantile Co.op Bank Ltd (a multistate scheduled Bank) in an
effort to revive the Bank that was embroiled in deep financial crisis. It should go to the credit of
Mr.Shetty that he was able to successfully accomplish the task of reviving the Bank within a
period of two and half years much to the satisfaction of the RBI officials. We welcome Mr.
Shetty to our fold and look forward to his expertise and acumen in the field of banking to steer
our Bank to greater heights.
Staff Training
The Bank deputes management and staff to various training programmes conducted by well
established institutions like Reserve Bank of India - College of Agricultural Banking,
VAMNICOM, NAFCUB etc. The Bank deputed Chief Managers / Sr. Managers / Branch
Managers / Officers and other staff to various training programs conducted by these institutes to
hone their skills and keep them abreast with the extant / guidelines issued by the regulators. Bank
is also conducting in-house training programmes for all staff periodically.
NPA Management
The Bank continued its persistent efforts to restrict NPAs to the least level possible through
stringent recovery and astute legal process. During the year the Bank was able to curb additional
NPAs and make recoveries to the extent of Rs. 7.00 crores. Further in an attempt to cleanse the
Balance Sheet and claim Income Tax exemptions, 22 accounts amounting to Rs. 7.24 crores as
certified by the Statutory Auditors, have been written off against the Bad & Doubtful Debts
Reserve. This exercise has been undertaken without causing any prejudice to the rights of the
Bank, to continue with the proceedings to recover the amounts from the parties concerned. With
this Gross NPA as on 31.03.2014 stands reduced to 4.93% as against 8.99% in the previous year.
Consequently the net NPA stands at 0.99% as against 3.30% last year.

42

Cash & Bank Balance


The Bank maintains requisite cash balance with Reserve Bank of India and sufficient liquid
assets were also maintained as per section 18 and 24 of the Banking Regulation Act, 1949 as
applicable to Co-operative Societies.
Corporate Social Responsibility
As part of CSR activity, your bank facilitated students of MVM Educational Institution and
those from IBS Business School - Powai Campus to intern at our branches. The students were
given specific projects during their two month vacation period. The projects helped the students
to know about various aspects of banking activities. Their inquisitive & fresh approach also
helped the bank to understand customer expectations and competition offerings. The CSR
activity proved to be a win-win initiative for the bank and the students. Additionally, your bank
met teachers managing the Anganwadis near our branch vicinity, in an effort to bring about
financial inclusion in their life. In order to help those in the unorganized sector, to take the
benefit of Govt of Indias National Pension Scheme, your bank also started offering the same to
the vast majority of daily wage earners, cart pullers, security guards, drivers and others who do
not presently have an option to avail pension or Provident Fund in any form.
Acknowledgement
The Board of Directors take this opportunity to express their gratitude to all the members,
depositors, borrowers and well wishers for their whole hearted patronage. The Board records its
appreciation for all the co-operation extended by the officers of the:
Reserve Bank of India especially the Urban Bank Department and Public Accounts
Department
The Board conveys its sincere thanks to Our Bankers:
Government of Maharashtra

43

The Commissioner for Co-operation and Registrar of Co-operative Societies, Maharashtra


State, Pune
Divisional Joint Registrar
District Deputy Registrar
Deputy Registrar Co-operative Societies, Mumbai (I) City. The Board is also thankful to
The Mogaveera Vyavasthapaka Mandali Sponsors of the Bank
Brihan Mumbai Bankers Clearing House / National Clearing Cell / SBI Cheque Processing
Centre
The Statutory Auditors M/s. R.S.V.A. & Co. Chartered Accountants.
The Concurrent Auditors M/s. Harish.D.Shetty & Co. Chartered Accountants, M/s. Yashwant
& Co. Chartered Accountants, M/s. K. B. Jorapur & Co. Chartered Accountants.
Reserve Bank of India
State Bank of India
The Maharashtra State Co-op. Bank Ltd.
The Mumbai District Central Co-op. Bank Ltd.
Axis Bank Ltd.
IDBI Bank Ltd.
The Federal Bank Ltd.
Bank of India

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For and on behalf of the Board of Directors


Place: Mumbai
Date: 4th September 2014

Sd/Kirthiraj K. Salian

Chairman

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APNA BAZAR CO-OPERATIVE SOCIETY


Finanical Report

From the above table, it may be observed that Apna Bazar has created employment more than
500 local people directly and the equal number of part-time employees through allied services. It
has also been paying crores of Rupees in terms of taxes to the state exchequer every year.

The achievement of Apna Bazar has been possible because of the dedication and devotion of
active participating members and visionary leadership, sincere, ungrudging work of
the employees and love and goodwill of millions of inhabitants and consumers of Mumbai and
Maharashtra. The management of Apna Bazar is greatful to all the customers for their support to
co-operative movement.
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Capital Structure
Capital Structure of Apna Bazar as on 31-03-2015 is as follows :-

Apart from being the biggest retailer, Apna Bazar has made its humble contribution as under, to
the development of National Economy

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Conclusion
Co-operation is a tool in the hands of the people to achieve the progress through common help.
Therefore, it is largely depends upon the judicious selection of members and their training
regarding to co-operative principles. Unfortunately, people have been entrusted with the
management before they are fit for it. It must be based on the ordered will of the people. The
movement cannot succeed unless members are educated. Masses are yet illiterate and ignorant in
the district.
Co-operative movement became a government agency. Co-operatives are working under
government policy and State or official control, it is necessary that official control (that now
exists i.e. the extension of the Banking Regulation Act, 1949 (as applicable to co-operative
societies) from 1st March 1966 and Maharashtra Cooperative Societies Act, 1960) should be
slackened to a certain extent. In order to boost up the co-operative movement it is necessary to
encourage the responsibilities among the rural masses as a member of the co-operative society.
Development agenda should be come from the people unfortunately regarding to co-operative
sector most of the decisions or agenda of development formulated and implemented by
government about this common people would unaware. Thats why co-operative movement
must come from people and not from
The co-operative movement has shown uneven performance over the study period. It is revealed
that the movement was not performed up to the expectation movement had done nothing to
abolished poverty of rural masses. Nor has it contributed to increase agricultural production, to
establish better marketing conditions, better standard of living for the rural masses. Therefore,
Co-operative sector in Ahmednagar district have contributed a great portion of the rural
economy.
Present changing scenario in the context of economic reforms period have created new
challenges in front of cooperatives, to meet the recent challenges co-operatives must prepare
themselves to compete which needs due consideration. Progress showed slowdown over the
study period. Various weakness of the co-operative movement; existence of a large number
ofdormant and weak societies, lack of knowledge and will to work on co-operative principles
among the members and office personnels, the initiative comes from government not from
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people, co-operatives serving in the different sectors are detached and not operating in support to
one another, inefficient management occurred due to untrained and unqualified personnel, cooperative movement became a platform of vested interest, political influence and interference,
inadequate financial resources, defective loaning policies, willful defaulters, high amount of
overdues and unsatisfactory performance of recovery, lacking of supervision, administrative
deficiency, dedicated and honest leadership. It is observed that out of the various factors,
government support and timely and adequate financial support is highly essential to reach the
needs of these sectors.
Therefore, in changing economic scenario government has withdrawn their support and financial
assistance to co-operatives. There is a hard line competition has exists in the development of the
co-operative societies and made it difficult to cop up with this competition. However, cooperative have to restructure their business and activities, efficient and cost effective technology
which enables them to survive in this changing new economic order. From economic point of
view co-operative movement contributed a lot as the movement basically stated to save the
farmers from the clutches of the moneylenders and traders. Firstly, co-operatives provided cheap
credit facility to agriculturists for various agricultural activities. Co-operatives increased the
banking habit among the rural masses through a vide branch expansion in countryside. It helps to
increase thrift and savings among the peoples. Co-operatives provide required inputs for
production with bulk purchasing for their members and also sure better prices to their production
through marketing and processing units. Consumer co-operatives drop middlemen and gives
direct benefit to the members and consumers. All the services rendered through the co-operatives
generate employment, income and brought about an improvement in standard of living. Cooperatives teach to self-reliant, honest, sense of responsibility, honor and attentiveness through
co-operative principles.

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Refrence
1. http://studypoints.blogspot.in/2011/06/define-cooperative-society-anddiscuss_2007.html
2. http://ww.yourarticlelibrary.com/business/co-operative-society3.
4.
5.
6.

meaning-and-formation-of-co-operative-society/42063/
https://www.wirc-icai.org/material/registration%20of%20societies.pdf
http://www.prkulkarni.com/pdf/balancesheet.pdf
http://advocateji.com/books-to-be-maintained-by-co-operative-society
http://www.managementparadise.com/article/1149/apna-bazaar-

consumer-co-operative-society
7. https://en.wikipedia.org/wiki/The_Shamrao_Vithal_Cooperative_Bank_Ltd.
8. http://www.archive.india.gov.in/citizen/co_operatives/co_operatives.php
?id=6
9. https://en.wikipedia.org/wiki/Indian_Farmers_Fertiliser_Cooperative
10.http://rcs.delhigovt.nic.in/regcop/act73/CHAPTER%20IV.htm
11.http://www.slideshare.net/Roshankumar2007/audit-of-cooperativesociety
12.http://www.incometaxindia.gov.in/Acts/Income-tax%20Act,
%201961/1966/102120000004038108.htm
13.http://www.mogaveerabank.com/mogaveerabankbalance14.pdf
14.http://shodhganga.inflibnet.ac.in/bitstream/10603/2502/14/14_chapter
%208.pdf

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