OBJECTIVES A.

PRINCIPAL OBJECTIVES: The principal objectives of the society is arranging for and undertaking of the purchase, storing, processing and marketing of the agricultural and other producer or produces of the its members or the undertaking of distribution of commodities. B. OTHER OBJECTIVES OF THE SOCIETY: 1. To encouragemembers to grow improved and standard varieties of produce. 2. To accept deposits or to barrow funds from the financing bank or form others. 3. To advance loans to members on the security of their produce or processed. 4. To prepare the produce for markets by sorting, grading, marking, packing and Repacking. 5. To own or hire Lorries, van and other transport of produce from members residence farms or god owns to markets. 6. To rent or hire or own god owns processing yards and plants to facilitate storage Processing and sale of produce belonging to members of affiliated societies or Purchased by the society. 7. To act as a warehouse man under the Tamilnadu warehouse act, 1951. 8. To encourage thrift, self-help and co-operation among members. 9. To act as the agent of consumer co-operatives on the federation any other

Co-operatives for the purchase of commodities which it may require. 10. To propagate and supply pure seeds.

CAPITAL: The authorized share capital of the society shall be Rs.25,00,000 consisting of 2,50,00 shares of Rs.10 each.

FUNDE: 1. Share subscriptions. 2. Barrowings from the state Government financing bank or other co operative institutions by way of loans advances cash credit or over drafts. 3. Deposits. 4. Entrance fees and other fees. 5. Donations, gifts, grants, subsidies or other benefactions as approved by the registrar. 6. Other miscellaneous receipts.

BARROWING POWERS: The total barrowing of the society by the way of loans, deposits or otherwise whether from members or other shall not at any time exceed eight times the arregate

amount of the paid-up-sharecapital and reserve fund or the limit if fixed by the registrar in respect of the society or any class or category of the societies to which the society belongs whichever is less. It shall however be competent to the board to barrow from the financing bank in excess of this limit provided that the excess barrowings shall be covered by the pledge of agriculture of the financing bank subject to the limit of 30 times the aggregate amount of paid up share capital and fund of the society.

MEMBERS AND MEMBERSHIP

MEMBERSHIP Any individual over eighteen years of age who is completed to contract under section 11of Indian contract act 1872 and who owns or cultivators lands within the area of operation of the society specified in bylaw and who wish to avail himself of the services of the society and abide by the obligation of membership and any primary. Agricultural co-operative bank, any coop farming society, any left irrigation coop society and any agro engineering and service coop center/society operating within the area of operation of the society specified in bylaw. Shall be eligible for admission as a member subject to the provision of bylaw.

PROVIDED THAT: 1. A person who is a minor or of unsound mind may be admitted as member.

2. His transactions within the society shall be only through his guardian. 3. The TamilNadu Government shall also be eligible for admission as a member. 4. Anybody of person whether imported or not and law, if such body is approved by Government in this behalf by general or special order shall also be eligibility for admission as a member.

ASSOCIATE MEMBERS:

1. Any trade commission agent or merchant included the approved list of the society who is engaged in business in commodities deal with by the society having dealing with the society. 2. Any paid officer or servant of the society or of its financing bank desiring to avail of the serving of the society with the prior approval of the registrar may be admitted as an associate member of the society. 3. An associate member shall not be required to contribute to the share capital of the society but shall pay admission fee of Rs5 which shall be refundable. 4. An associate member shall not be entitled to participation in the general meeting of the society or in the elections to the society or o any share in

any from what so ever on the insets or profits of the society. 5. An associate member shall, irrespective of the liability of the society, be liable to contribute to the assets the society on its being wound up only to the extent of any duels which he may be owing to the society single or jointly with any other debtor. 6. Should an associate member causes as such under clause all sums payable by him to the society shall become due on the date of such cessation not with stand anything country in any other provision of these bylaw or of the regulation. RIGHT OF MEMBERS TO SERVICE AND TO INSEPCT THEIR ACCOUNTS.

1. Any member of the society may at any time during office hours inspect the account of the society so for as they relate to his transactions with it either by himself or by an agent who is a member of the society specially authorized by him in writing on payment of a fee of five rupee for any co-operative year to which the accounts to be inspected relate three rupees for every such additional co-operative year one member at any such inspection.

2. Every members of the society shall be entitled to the services available to the members of the society shall under the provisions of these bylaws and services shall on applications made by him be rendered to him by board. A member who is refused any service or to whom the decision of the board on his applications for service has not been communicated with in a period of fifteen days from the date of receipt of such application by the society may apply the register for reduces in accordance with the provisions of section 24 of the act & rules 36 of the rules. 3. Any member of the society may at any time during office hours and on payment of the five rupees for any co-operative year to which the account to be inspected relate, here rupee for every such additional co-operative year and twenty five rupees for any one member at any such inspection, by himself or by on agent. Who is a member specially authorized by him in writing inspect the accounts of the society in so for as the relate to his transaction with it. PAID OFFIERSAND SERVENT 1. Subject to the financial conditions of the society and the annual budget

allotment, the board shall, with the prior approval of the registrar, prescribe or modify from time to time the staff strength in each category of paid officers and servants of the society and their scales of pay and all their allowances. 2. Subject to the provisions in section 73&77 and rules framed their under, the paid officers other than the managing director shall be appointed by the society, other than the officers and servants on deputation, shall be governed by the provisions in rules 148&149 of the rules and the staff regulations adopted by the society with the approval of the registrar.

POWER &FUNCTIONS OF THE MANAGING DIRECTOR

1. The managing director shall be the chief executive of the society. He shall carry into effect the resolutions of the board which are accordance with the act, these rules and the bylaws and which are not against the interest of the society. He shall refer all other resolution with details as to how, in his opinion, they are not in accordance with the act, these rules are the bylaws or against the interest of the society to the registrar. 2. The managing director shall have an overall control of the day to day

administration of the society and all correspondence shall be conducted by him.

3. The managing director may with the approval of the board, institute or defend any suit or other legal proceeding on behalf of the society. 4. The managing director shall have power to operate the accounts of the society to enders and transfer promising notes Government and other securities held by the society and to sign enders and negotiation cheques and other negotiation instruments bonds, receipts and all accounts on other documents connected with the business of the society for an don behalf of the society. 5. The managing directors shall have the right to inspect the constituents which have received financial assistance from the society and shall have the power to cash for any record or inspect the works financial by the society and verify securities, cash and accounts relating to such constituents. 6. The managing directors shall make arrangements for the proper maintenance of account and the custody of cash and other properties of

the society. 7. It shall be the duty of the managing director to carry on the business of the society in accordance with the Act, these rules the bylaws and regulations. If any, framed by the board and approved by the registrar. 8. Subject to the previous in section 73 to 77 the rules and the staff regulations framed by the board, the managing director shall be the authority competent. i) To be make appointments of the members of the establishment other than the paid officers in accordance with the strength in each category and scale of pay prescribed in the service regulations. ii) iii) iv) To transfer all the members of the establishments. To grant leave of all kinds to all the members of the establishments. To award any punishment of any members of the establishment as specified rules. 9. The managing director shall exercise such other powers as may be delegated to him by the board. 10. The managing director may by order in writing delegate any of his functions to any officers or servants of the society. He may at any time,

withdraw the functions delegated shall be subject to such restrictions limitations and conditions as may be laid down by the managing director and shall also be subject to his control and revisions. All such delegations of the functions of managing director shall be placed before the board for its information.

PROPERTY AND FUNDS DEPOSITS Deposits may at the discretion of the board, be received at any time from members or from persons other than member or such term and conditions as may determined by board. OTHER BARROWINGS 1. It shall be competent to barrow funds otherwise than by way of deposits from members the Government or the financing bank. 2. The board may with the prior approval of the registrar and subject To such limits and conditions as he may impose barrow from any other source other than the Government or the financing bank.

RESERVE FUND. 1. The reserve fund shall belong to the society as a whole and is intended to meet unforeseen losses it shall be indivisible and no member shall have any claim to a share in it. It may be drawn upon with the special sanction of he registrar to meet unforeseen losses. 2. The reserve fund of the society shall not be invested or deposited expect in one or more of the modes mentioned in clauses (a),(b),(c) &(d) of section 68 of the Act, provide that when the reserve fund of the society exceeds twenty present of its working capital, the excess may with the sanction of the registrar be utilized in its business. Provided further that the society may with previous sanction of the registrar utilize the whole of its reserve fund in its business. 3. On the dissolution of the society the reserve fund together with the other funds constituted by the society in accordance with its bylaws including the common good fund and the divided equalization fund shall be applied by the liquidation in the manner specified in rule 100 of the rules. INVESTMENTS

The investment of funds of the society shall be made in such manner as is provided in section 68 of the Act

PROFIFS DEPOSITS OF NETPROFITS

1. The society shall pay, from out the net profits, as declared by the net profit as declared by the registrar in respect of any co-operative year. i) Three present of the net profits of to the co-operative research and development fund. ii) Two present of the net profit to the co-operative education fund.

Subject to such monetary limit as may be specified in the rules. These contributions shall be permitted by the society to the co-operative union of which it is a member with one month from the date of receipt of the audit memorandum. The balance of the net profits as so declared shall be appropriated in the following order.

i)

For being credit to the reserve fund the amount so credited being not less than 20% of the net profit.

ii)

Towards payment of honorarium to the members of the board including the president and vice president at such sum as may be decided by general body subject to the provisions of rules 94 of the rules.

iii) iv)

Towards payment of dividend on shares to members at a rate not exceeding fourteen percent per annum on the paid p value of each share.

v)

The dividend be paid to members proportionately to the amount of paid up share capital held by each and also to the period during which the paid up such capital was so held during the year.

vi)

Towards payment of bonds to members with reference to the extent of business done by the members with it or the value of the service rendered by such members to the society subject to a maximum of fifty percent of the profits, provided that the society shall not utilize any portions of the accruing on the business done by the nonmembers for payment or bonus to members but shall carry the entire

amount to accrued to the reserve fund or business loss reserve as may be decided by the general body. vii) A sum not exceeding ten percent of the net profits shall be carried to special price fluctuation fund. viii) To pay bones to employee subject to the provisions of rules 97 of the rules. ix) x) A sum not exceeding 10% of the profit to dividend equalization fund. A sun not exceeding 10% of the net profit to business loss upon

except with the previous sanction of the registrar and xi) A sum not exceeding 10% of the net profit to building fund, which shall not be drawn upon except with the previous sanction of the registrar. xii) A sum not exceeding 10% of the net profit be contributed to a common good fund to be utilized in accordance with the provision of rule 98 of the rule. xiii) The remainder, if any of the net profit being credited to the reserve fund.

All usndisbursable and indivisible profits shall added to the reserve fund.

BUSINESS LOAN OPRATIONS

i)

To whom loans may be given. Loans may be given only to the members of the society.

ii)

Applications for loans. All applications for loans shall be made in the form in any prescribed for the purpose to the managing director.

iii)

Authority to sanction loans. a) Every application for loan shall be disposed of by the board which shall have the power to sanction or reject a loan application. The board may constitute a subcommittee consisting of the president or vice president, the managing director and a member of the board of the society and delegate the powers to sanction or reject loan applications to such loan subcommittee. b) The managing director shall place all the loans applications together with his specific remarks to the board or to the loans

sub-committee as the case may be, at its meeting for disposal where a loan application is reject the board or the loans subcommittee, as the case may be, shall record the reasons for such rejections. c) Not with standing anything contained in clauses (a) & (b) above, temporary advance of Rs.1000 may be agricultural produce for sale by the managing director which shall be placed in the next meeting of the board satisfaction. The advance so made shall be recovered within 10days out of the scale proceeds of such member interest an such advance shall be charged for the period exceeding 10 days. iv) Period of loans. a) The period of repayment of the loans shall not ordinarily exceed 6months. Subject to this limit table period of repayment in the case of loans recurred by the pledge of warehouse receipt shall not exceed the period up to which the warehouse receipt offered for pledge is valid. It shall be competent for the board to extend the period up to a maximum of 1year in exceptional cases

provided that the commodities can keep for long time in good condition. b) The loan shall be repaid on the expiry of the loans or earlier if the warehouse receipt pledged shall be released. A part of the produce may also be released if the member so desirer on the payment of proportionate market value provided the balance of the produce is sufficient to cover the balance of the loan. c) If the due for repayment of a loan or installment, falls on a holiday the next working day shall be deemed to be the due for repayment of such loans or installment. d) If a borrower does not pay his dues on the due date, it shall be competent for the board to sell without notice to him and without his consent the produce pledged or the produce to which the ware house receipt relates, as the case may be credit the sale proceeds to his loans account. e) If the loans not repaid on the due date, it shall also be open to the financing bank which finances the society to compel the society to seal the produce and realize the debit. The member shall be

liable to make good the deficit, if any, after the shall proceeds of the produce have been credited to his loans account. v) Security for loans. a) Loans shall be recurred in one or other of the following methods namely. b) On the pledge of the produce wholly belonging to the members up to a maximum of 75% of the market value in the case of food grains 70% of the value in the case of cotton, groundnut and supari and 60% of the value in the case of other commercial produce. c) On the pledge of negotiable warehouse receipts issued by a licensed warehouse run by the central and state warehouse corporations set up under the agricultural produce corporation at, 1962, duly assigned not exceeding 75% of the estimated value of the goods covered by the ware house receipts. d) If , at any time during the currency of the loan, there is a fall in the value of the price of the commodity so pledged or

deterioration in its quality or on account of any other reason it shall be the duty of the borrowing member of furnish such additional security as may be demanded by the society to cover the deficit. It shall be competent for the society for fore close the loan and recover the entire amount from the member, if he fails to furnish the additional security with in the time fixed by the society. e) The produce pledged by a member shall be secured either in the society own god own or in other suitable god owns approved by the financing bank which finances the society. In the case of a god own rented by a member a letter should be taken from its owner to the effect that he has no lien on the produce stored in such god own and this letter should be filled with the bonds executed by the member concerned.

f) The god own inspector shall verify the produce stored in the god own and certify the quality quantity and market value of the produce furnished by the member in his loan application to the society and no loan shall be disbursed to a member unless and

until such certificated of the god own inspector has been received and the society has secured the key of the god owns. g) Where the produce is stored in improved god owns, the member shall furnish collateral security bonds with two sureties or mort age of immovable properties in the form of continuing guaranteed bonds no loan exceeding Rs. 3,000 shall be granted on the pledge of produce stored in improvised god owns. h) Ware a guarantor is taken as in the case of turmeric, the guarantor shall also joint in the execution of the bond. vi) Interest on loans. Interest on loans granted by the society shall be at such rate as may be fixed by the board from time to time subject to the guidelines issued by the financing bank or by the registrar. The first month shall be reckoned from the date on which the loan is paid to the corresponding date of the next month. Interest shall be calculated on daily outstanding balance. vii) Power to recall loans. When a loan is not paid on the due date, the loan account shall at

once be closed and the board shall inform the borrower of the fact and of the amount outstanding against to him including interest up to the data of closing the loan account step shall taken without delay to recover amount with the interest due from the date of closing the loan account of the date of recovery. viii) Loans to be recall on a member becoming in eligible to continue as such. If an individual member becomes ineligible for membership at any time and his game has on the list of members under bylaw or should be a member expelled under bylaw the loan account if any of the member concerned shall at once be closed without reference to the term for which the loan has been granted and action shall be taken to recover the amount outstanding against him including the interest due up to the date of closing the loan account. Interest shall be charged at such rate as may be fixed by the board on the amount so found outstanding from the date of closing the loan account to the date of recovery.

ix)

Custody and Insurance. a) The produce pledged shall be place in the joint custody of the financing bank if the society is the borrower of such bank and the society whether stored in close god owns or in the open god owns belonging to the society in either case the god owns shall be maintained under the double kept with the society. b) The society is not however responsible for any damage or determination of goods but will store the goods in such a way as not make them liable to determination. c) The society shall be primarily responsible for watching the god owns in which the produce is stored and any loss on account of theft, defective insurance or otherwise shall not affect the financing bank. d) In respect of all loans exceeding Rs. 1000on noncombustible produce the produce shall be covered by insurance agent fire. However when been taken from the borrowers as collateral security insurance may be made optional for the noncombustible produce in respect of loans not exceeding rs. 3000.

e) The produce shall be insured for which full market value and the insurance policy shall be in the joint names of the society and the financing bank. The period of insurance shall normally corresponded with the period fixed for the repayment of the loan. If the loans is not repaid within the time fixed the society shall get insurance policy in that loan extended for the period required. f) Combustible goods and noncombustible goods should not be stored in the same god own as in the event of a fire accident even the noncombustible goods will be destroyed or damaged, where however they have to be kept in the same god own either the noncombustible goods should also be insured or the god own should be made into two compartments by fire proof partition the combustible goods being placed in once compartment and the noncombustible goods in the other.