HISTORY :

The society under study, the kancheepuram central Co-operative Bank, with
effect from 10.05.1915. was registered as a central co-operative bank.
Head Office :
Post Box No.9,
15-Sheikpet North Street,
Kancheepuram-631 501.
Branches:
The Kancheepuram central co-operative Bank has 48 branches around
kacheepuram district. And the main Branches are
1.kamarajar salai,
2.Chrompet,
3.tambaram,
4.guduvanchery,
5.ambatur,
6.aavadi,
7.mugapeir,
8.thiruvallur
9.porur,
10.thiruporur

Date of Registration : 10.05.1967.

Date of Opening : 12.05.1967.

ADMINISTRATIVE SET UP:

1 secretary
2 Assistant secretary
3 clerk
4 Office assistant
FINANCING CONTROL:
1
2
3

nabard
State apex co-operative bank
DISTRICT CENTRAL CO-OP BANK

MANAGEMENT PROFILE:
The name of the financing institution from the Kancheepuram
Central Co-operative Bank.
The Joint Registrar who covers the Kancheepuram Region.
The Deputy Registrar Circle covers through out the Chengelpet.
The Bank belongs to the jurisdiction of St.Thomas Mount.
The Management Co-operative Sub Registrar / Special Officer
effect manages from 25.05.2001.

Name of the Chairman

: Mr.E.Krishnamurthy

Name of the Secretary

:Mr.P.Jeyapaal

MAINTAINING OF ACCOUNTS:
Meaning: The Accounting In practice, it is impossible for any businessman to
memorize and recollect all his business dealings. Moreover, he will be interested in
knowing at the end of each year.
1 What he owns?
2 What he owes?
3 How much profit he has earned?
4 Whats his financial position is?
To relieve from the burden of memorizing all the business dealings and for
providing necessary information, Accounting was developed.
Definition of Accounting :
According to American Institute of Certified Public Accountants (AICP)
Accounting is the art of recording, classifying and summarizing in a significant
manner and in terms of money transactions and events which are of financial
character and interpreting the results thereof.
Objectives of Accounting :
1 Maintenance of Accounting Records.
2 Ascertainment of Profit or Loss.
3 Depiction of financial position.
4 Providing information.
METHODS OF ACCOUNTING

1 Single Entry System.

2 Double Entry System.
TYPES OF ACCOUNTS:
1 Personal Accounts : Debit the Receiver
Credit the giver.
2 Real Accounts : Debit what comes in
Credit what goes out.
3 Nominal Accounts : Debit all expenses and losses
Credit all incomes and gains.

LIABILITY:
WHAT DOES LIABILITY MEAN?
A company's legal debts or obligations that arise during the course of business
operations. Liabilities are settled over time through the transfer of economic
benefits including money, goods or services.
LIABILITY OF THE SOCIETY:
The liability of the member of the bank shall be limited to the share capital
subscribed by them. In accounting, liability is a loan, expense, or any other form of
claim on the assets of an entity that must be paid or otherwise honored by that
entity.
LIMITED LIABILITY :
The limited liability means the liability of members is limited up to the extend
of share capital subscribed by them. In short we can say Limited Liability is one
that does not go beyond the owner's investment in the business.

UNLIMITED LIABILITY :
Unlimited liabilities the members personal assets such as land, properties,
movable and immovable are attached in the event of loss incurred by the society.

OBJECTIVES:
Following are the main objectives of the Kancheepuram central co-operative bank.

To finance co-operative societies registered under the Tamil Nadu Cooperative Societies Act, 1983

To carry on the business of Banking (banking means the accepting, for the
purpose of lending or investment, of deposits of money from the public, repayable
on demand or otherwise and withdrawable by cheque, draft, order or otherwise as
defined in the Banking Regulation Act 1949).

To open, with the permission of the Registrar, branches at suitable places in

the District.

To develop, assist and co-ordinate the work of affiliated societies;

To arrange for the supervision of societies;

To arrange for the holding of periodical Co-operative conferences and for

taking necessary action, pertaining to its own functions, on the resolution, passed at
such conference;

To maintain a library of co-operative literature;

To receive moneys from the Tamil Nadu State Co-operative Bank for
purchasing shares in affiliated societies;

To advance long term loans for the purchase and construction of building
and issue of medium term loans for purchase of vehicles for the employees of the
bank;


In addition to the business of Banking, the Bank may engage in anyone or
more of the following forms of business, subject to the rules and regulations
framed by the Board of Directors from time to time.

DUTIES OF CITIZENS:
1. Every member should repay the dues to the co-operative bank in time.
2. Every member should exercise his vote for the selected of Board Of
Directors by the board of member.

MEMBERSHIP :
The following persons are eligible to become the members of the bank.
1 Any individual agricultural or non-agricultural member competent to
contract under Section 17 of the Tamilnadu Co-operative Societies Act 1961
and Section 21 of the Tamilnadu Co-operative Societies Act 1983 and
Section 11 of the individual should reside within the area of operation or
should have immovable property with the jurisdiction.
2 The Government of Tamilnadu.
3.The financing bank to which the bank is Affiliated.
4.Minors may be admitted as members in some cases. These persons are only
eligible to get surety loans on the society of immovable property. The business
which are dealt with the bank should be through their guardian as trustee.

WORKING CAPITAL :
WORKING CAPITAL

OWNED FUNDS

RESERVE
FUNDS

BORROWINGS

SHARE
CAPITAL

MEMBERS

NABARD

GOVT

TNSCP

MEMBERS

DEPOSITS

NON_
MEMBERS

NABARD:
NABARD the apex institution providing financial assistance to agriculture and
other economic activities in rural areas came into existence on July 12, 1982.
The main functions of NABARD pertain lo policy development, coordination,
research, training, etc., relating to rural credit. It provides refinance lo
cooperatives, regional rural banks, etc. Moreover it makes loans and advances to
stale governments for a period not exceeding more than 20 years to enable (hem lo
subscribe directly or indirectly lo share the capital of cooperative credit societies.
Working Capital :
The Working capital of the Kancheepuram central co-operative bank consists
of Owned Funds and Borrowings.
The most common liquidity ratios are the current ratio and the quick ratio is net
working capital, while not a ratio, is a measure of liquidity and frequently included

in this section. The inventory valuation method can have a significant impact on
current ratio and net working capital.

Formula for calculating Net Working Capital = Current Assets - Current

Liabilities.

YEARS
2009-2010 2010-2011 2011-2012 2012-2013 2013-2014
WORKING CAPITAL
1250.74
1515.86
1793.23
2052.47
2131.9
(Rs. In crores)

OWNED FUNDS
The Owned Funds of the Bank consists of paid-up Share Capital plus Reserve
Fund created out of the Net Profit. This is one of the indicators of viability.

Share Capital
Reserve Fund

SHARE CAPITAL :
Share capital is that part of the capital of a company received from its owners
(i.e. its members or shareholders) in return for shares. Every company must
commence with some share capital (a minimum of two shares). See authorized

share capital; called-up share capital; issued share capital; paid-up share capital;
reserve capital.

S.NO
1
2
3
4
5

YEAR
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014

SHARE CAPITAL
(Rupees in Crores)
106.58
112.69
122.29
125.28
51.67

RESERVE FUND
An account set aside by an individual or business to meet any
unexpected costs that may arise in the future as well as the future costs of upkeep.
In most cases, the fund is simply a savings account or another highly liquid asset,
as it is impossible to predict when an unexpected cost may arise. However, if
the fund is set up to meet the costs of scheduled upgrades, less liquid assets may be
used.
The Bank is required to create 20% of its Net Profit as a Reserve Fund to meet
the unforeseen losses arises in future. The Credit society is maintaining two types
of reserves. Statutory and Non-Statutory reserves. This fund is invested in the
Kancheepuram Central Co-operative Bank Ltd.
S.NO

YEAR

RESERVE FUNDS
(Rupees in crores)

1
2

2012-2013
2007-2008

565.95
1992.19

II. BORROWINGS
The Borrowings are an important sources of Mobilizing Funds.
Loan from Banks (KCCB)
Deposits
LOAN FROM BANKS :
Meaning : Financial Institutions offer business many types of short-term loans. No
matter what the type of loan, however, the cost to a borrower is usually measured
by the percent interest rate charged by the lender. The annual interest rate that
reflects amounts of interest paid divided by the amount borrowed is the effective
interest rate.
The Kancheepuram central co-operative bank, borrows long term loans from the
Tamil nadu state cooperative bank because it owned fund was not enough.
S.NO

1
2

YEAR

2012-2013
2013-2014

KCCB
(Rupees in crores)
287.63
131.13

DEPOSITS :
Accepting deposits is one of the two major activities of the banks. Banks are
also called custodians of public money. Basically the money is accepted as deposit
for safe keeping. But since the Banks use this money to earn interest from people
who need money. Banks share a part of this interest with the depositors. The
quantum of interest depends upon the tenor-length of time for which the depositor

wishes to keep the money with the bank-and the ease of withdrawal. The thumb
rule is , longer the tenor, higher the rate of interest and lesser the restrictions on
withdrawal, lesser the interest. Exceptions however exists.

DEPOSITS
S.NO

1
2
3
4
5

YEAR

2009-2010
2010-2011
2011-2012
2012-2013
2013-2014

(Rupees in
crores)
673.39
854.05
1005.00
1189.32
1451.25

DEPOSITS :
GENERAL
FUNCTIONS
A) Collection Of Deposits :
The Kancheepuram central co-operative bank is authorized to collect various
types of Deposits. Accept deposits from members and from the public it offers 25%
more interest than any other commercial banks. All the deposits are granted
by Kancheepuram central co-operative bank The Bank accepts following types of
Deposits.
1 Fixed Deposits.
2 Cash Certificate.
3 Savings Deposits.
4 Recurring Deposits.

5 Current Account.
Deposit may at the discretion of the Special Officer or president be received at
any time from members and non-members. The collection of deposits and issuing
of Jewel Loans is the secondary function.
DEPOSITS OUTSTANDING POSITION FROM 2012-2014
Outstanding Details on Deposits:
PARTICULARS

2012-13 (Rs in crores) 2013-14

crores)

(Rs

in

Short term deposit:

Individual
Cooperative society
Saving deposit:

988.6
159.2

1158.3
207.6

Individual

1581.9

1606.7

Cooperative society
Current savings:
individual
Cooperative society

233.7

277.9

299.4
1008.5

273.9
1117.3

B) ISSUE OF LOANS AND COLLECTION OF LOANS :

The Primary Agricultural Co-operative Credit Society was started in order
to fulfill the credit needs of the Agricultural members. But , at present, it was
extended the services to the Non-Agriculturist also. Now it undertakes various

functions. Giving loans to the needy members, is the main function of the bank.
The various types of loans issued and collected are :
1 Short Term Loan / Crop Loan
2 Medium Term Loan
3 Jewel Loan
4 Jewel Loan (Agri.)
5 Loan on Deposits
6 House Mortgage Loan
7 Consumer Loan
8 Micro Credit Loan
9 Self help Group Loan
10 SHG Auto Loan

S.NO

YEAR

1
2009-2010
2
2010-2011
3
2011-2012
4
2012-2013
5
2013-2014
MANAGEMENT AND ADMINISTRATION :

Loans
(Rupees in
crores)
993.59
1219.10
1403.19
1592.34
1507.61

BOOKS AND RECORDS MAINTAINED

1. Chitta
a. Due by ( Sundry Creditors )
b. Due to ( Sundry Debtors )
c. Deposits and Loans sub day Book.
2. Loans Outstanding Register
3. Main Day Book.
4. General Ledger.
5. Investment Register.
6. Dividend Register.
7. Cash Remittance Register
8. Due date dairy.
9. Members Loan Register.
10.Crop war Register.
11.Loan Disbursement Register.
12.Members Overdue Register.
13.Land Register.
14.Insurance Register.

15.Demand collection due Balance Register

16.Admission Book.
17.Minutes Book.
18.Forms and Ledger Register.
19.Attendance Register.
20.Postage Register.
21.Godown Register.
22.Gunnies details Register.
23.Pay Disbursement.
24.Dispatch Register.
25.Inward Bill Register.
26.Stock Register.
27.Jewel Loan Register.
28.Jewel Stock Register.

SPECIAL FUNCTIONS:
COLLECTION OF DEPOSITS
The bank is authorized to collect various types of deposits. The Society gives
1% higher rate of interest that any other commercial banks or societies. All the
deposits are guaranteed by the Kancheepuram Central Co-operative Bank.
Types Of Deposits:

Deposits may, at the discretion of the Special Officer or President be received

at any time from members and non-members. The bank collect the following types
of deposits.
1 Fixed Deposit
2 Cash Certificate
3 Savings Deposits
4 Recurring Deposits
5 Security Deposits

1 ) FIXED DEPOSITS :
Fixed Deposits is one which is made for a fixed period and for fixed rate of
interest for fixed amount. It is collected from the members and general public. It is
withdrawable only at the time of maturity. Fixed Deposits can be made for
minimum period of 7 Days interest is payable monthly or annually.

S.NO

1
2
3
4
5

YEAR

FIXED DEPOSITS
OUTSTANDING
(Rs. In crores)

2006-2007
2007-2008
2008-2009
2009-2010
2010-2011

1072.13
1150.68
1117.13
1323.93
1881.51

B) CASH CERTIFICATE:
The compound interest is given. This certificate is issued under the joint
signature of two authorized officers of the bank. The minimum period is one year.
At the time of maturity interest is calculated and paid along with the principle
amount.
S.NO

1
2
3
4
5

YEAR

CASH CERTIFICATE
OUTSTANDING
(Rs. In crores)

2006-2007
2007-2008
2008-2009
2009-2010
2010-2011

8.81
4.50
3.44
2.51
0.92

C) SAVINGS DEPOSITS :
It is collected from the members and the general public. It is deposited by the
members and public, whenever they had money. It is intended to tap the saving of
the middle income and low-income groups. It develops the habit of saving among
them. It is withdrawable during the working hours of the bank.
S.NO

YEAR

1 2006-2007
2 2007-2008
3 2008-2009
4 2009-2010
5 2010-2011
D) RECURRING DEPOSIT :

SAVINGS
DEPOSITS
OUTSTANDING
(Rs. In crores)
1056.62
808.27
630.36
646.48
825.42

It is collected from the members and non-members. A fixed amount usually in

multiples of Rs.5/- to be deposited by the depositor every month for a fixed period
of 12,24,36,48 and 60 months. It is accepted for a minimum period of 12 months.
Every depositor shall pay his monthly deposit before the end of the month of
which it relates, fraction there of compound interest is calculated.

S.NO

YEAR

1
2
3
4
5

2006-2007
2007-2008
2008-2009
2009-2010
2010-2011

RECURRING
DEPOSIT
OUTSTANDING
(Rs. In crores)
8.91
12.67
17.15
19.46
20.40

LOANS FROM OPERATIONS

A. ISSUE OF LOANS
B. RECOVERY OF LOANS
C. ACTION TAKEN AGAINST THE DEFAULTER.

ISSUE AND RECOVERY OF LOANS :

Disbursing Loans to the needy members is the most important function of the
credit society.

TYPES OF LOANS
1 Short Term / Crop Loan (KISHAN)
2 Medium Term Loan.
3 Jewel Loan
4 Loan on Deposit
5 House Mortgage Loan
6 Consumer Loan
7 Micro Credit Loan
The above types are explained as below.

1) Short Term / Crop Loan (KISHAN) :

Short term loan is a type of Loan issued for a period of 12 months by the bank.
This is issued to the members for the purpose of purchasing fertilizers and
pesticides and to meet the seasonal agricultural expenses. Current period this loan
called KISHAN Crop Loan is a credit facility sanctioned on the basic of
anticipated crop. It is sanctioned only to meet the seasonal agricultural needs. The
period of the loan is fixed according to the types of crop and the seasons. Generally
the period is 12 months. Seasonality is fixed by the agricultural Department.
At first, the Primary Agricultural Co-operative Credit Society prepares Annual
Credit Limit Statement for each and every A Class members. It contains full
details of individuals and his cultivable land. The Bank sends this statement to the
Chengalpet Circle Supervisor and Field Manager along with the signature of the
President and Secretary.

2) Medium Term Loan :

Medium Term Loans are given to the members for the following purposes.
1 To effect semi permanent improvement on lands.
2 To increase production which is important to the growth of agriculture.
3 To put vegetables and fruit gardens in the land.
4 To arrange for proper irrigation facilities.
5 To purchase cattles, implements, machinery, vehicles etc., for agriculture.
6 To purchase donkeys and mules.
7 To construct and repair farmhouses, living house or stable for cattles.
8 To repay prior debts.
9 To grow hens, fish, bees, silk moth and cattles.
10 To purchase implements used in agriculture and to construct buildings, or to
do production works or to spend on their management.
11 To purchase shares in processing societies.
12 To purchase land.

3) Jewel Loan :
The bank has issued Jewel Loan to members and non-members. It is sanctioned
on the security or the pledge of gold Jewel which belonging to the borrowers and
not to exceed 70% of the estimated market value of the Jewels. The main purpose
of giving Jewel Loan is to meet the family expenses of the borrowers. The period
of the loan is one year. The bank introduced this loan in the year 1987.
A member who wants to get jewel loan should first meet the secretary to get
application form. Before getting the application form, he should become the B

class members of the bank. B class share value is Rs.5/- and the entrance fee is
Re.1/- only. It is not refundable. The application form should be filled with full
details. It is signed by the borrowers and atleast two witnesses in the presence of
the Secretary/President of the society or Special Officer and he should submit it to
the Secretary. The Secretary and President will verify the application form. After
verification of the application form they will send it to the appraiser for valuation
of the jewels. After verification of the jewels he weighs it and the value is
recorded. After knowing the exact value, he should ask the member to give the
application form and make the necessary entries in the form, specifying the value,
weight and the other essential details. He should put the signature in the form to
certify that, he has valued the jewel. And he sends it to the Secretary/President.
Appraiser, affixes his seal on the jewel packet and then, the banker to seal it. Then
the jewels are kept in the safe custody of the society. The Reserve Bank of India
fixes the rate of interest. Now the bank charges 13% as the rate of interest for the
jewel loan. If the borrowers fails to repay the loan on time 3% interest is collected
additionally aspenaltyinterest.

4) Loan On Deposit :
This Bank provides loan on deposits to the tune 80% of the deposits amount of
each depositor charging +2% margin as deposit interest rate.
5) House Mortgage Loan :
The kanchepuram central cooperative bank has introduced Housing Loan in the
year 1992. The bank issues Housing Loans to A Class members only. The loan is
sanctioned with in the area of operation. To get the Housing Loan the members
should give full details about property namely plot.
1 Documents
2 Parent Documents
3 House Tax Receipts

4 Approved Plan
5 Tax Bill
6 Electricity Board Bill
7 Encumbrance Certificate
8 Family Ration Card (Xerox)
9 Passport Size Photos three copies
10 Electricity Board Card (Xerox)
11 Maximum loan amount Rs.5 lakhs in the year with agreement. The rate of
interest is 14%.
6) Consumer Loan :
The Bank has issued Consumer Loan for its member. Salary certificate
will be produced for it. Maximum Rs.25,000 is issued as loan amount for
buying TV, Two Wheeler, Washing Machine. Period is for 2 years and its
rate of interest is 16%.
7) Micro Credit Loan :
The Bank has issued Micro Credit Loan to member. It is sanctioned for ladies also
from Rs.500 to Rs.5000 only for flower shops, fish shops, street vendors. Period is
for 4 months. Rate of Interest 5%.

RATE OF INTEREST DETAILS FOR LOANS:

S.NO
1
2

TYPES
OF LOANSY
PADDY
JEWEL LOAN

PERCENTAGETAGE
7%
14%

3
4
5

S.NO
1
2

CONSUMER
N.F.S
S.H.G LOAN

LOAN

TYPES OF ACCOUNTS
SAVINGS ACCOUNT
FIXED DEPOSIT
46 Days to 90 Days
91 Days to 180 Days
181 Days to 364 Days
1 Year to below 2 Year
2 Years and Above
RECURRING DEPOSIT
1 Year
Above 2 Years

To Senior Citizen

12%
14%
12.5%

PERCENTAGE
3.50%
5.5%
6.5%
7.5%
8.5%
9%
8.5%
9%
Add. 1%

Self Help Groups

Self Help Group is group of rural poor who have volunteered to organize
themselves into a group for eradication of poverty of the members. They agree to
save regularly and convert their savings into a Common Fund known as the Group

corpus. The members of the group agree to use this common fund and such other
funds that they may receive as a group through a common management. The group
formation will keep in view the following broad guidelines :

Generally a self-help group may consist of 10 to 20 persons. However, in

difficult areas like deserts, hills and areas with scattered and sparse population and
in case of minor irrigation and disabled persons, this number may be from 5-20.
The difficult areas have to be identified by the State Level SGSY Committee and
the above relaxation in membership will be permitted only in such areas.

Generally all members of the group should belong to families below the poverty
line. However, if necessary, a maximum of 20% and in exceptional cases , where
essentially required, upto a maximum of 30% of the members in a group may be
taken from families marginally above the poverty line living contiguously with
BPL families and if they are acceptable to the BPL members of the group. This will
help the families of occupational groups like agricultural labourers, marginal
farmers and artisans marginally above the poverty line, or who may have been
excluded from the BPL list to become members of the Self Help Group.
However,the APL members will not be eligible for the subsidy under the scheme.
The group shall not consist of more than one member from the same family. A
person should not be a member of more than one group. The BPL families must
actively participate in the management and decision making, which should not
ordinarily be entirely in the hands of APL families. Further, APL members of the
Self Help Group shall not become office bearers ( Group Leader, Assistant Group
Leader or Treasurer ) of the Group.
AUDIT CLASSIFICATIONS MARKS
A 60% & Above
B 50% - 59%
C 35% - 49%
D Below 35%

NET PROFIT DISTRIBUTION

The Sozhanganallur Primary Agricultural Co-operative Credit Society has
eared profit from 2004 till now. The profit position of society as below.
Loans
S.NO

1
2
3
4
5

YEAR

2009-2010
2010-2011
2011-2012
2012-2013
2013-2014

(Rupees in
crores)
3.98
3.70
7.49
10.82
14.88

ACTION TAKEN AGAINST THE DEFAULTER :

This KCCB takes all possible steps initially to recover the loan issued.
However, is a member does not repay the loan installment continuously for
3months, the society institutes action against such defaulters only after
informing the defaulter by registered post. Even after all these steps were
taken, if the member does not pay attention, the concerned individuals file
will be handed over to the arbitration for further action.
WORK LEARNT
During the Training I have undergone, I have learnt the followings:
1 I have gone through the Bye-Laws of the society and understood the
important contents of it.
2 I have understood the various functions undertaken by the society.
3 I have understood clearly the terms fixed and followed. Regarding
maintaining of Accounts regarding Audit Classification.

4 I have understood the disposal of Net Profit in Conformity with the ByeLaws, Rules and Acts.
5 I have gone all the Books, Records ,Applications, Various Forms, Etc.
maintained by the co-operative credit society.

SUGGESTION
Advertisement is needed, to make an effective turning profit for benefiting
more customers in the bank.
Government of TamilNadu have to provide sufficient funds.
Improvement is needed in the Public Distribution Shops.
Infrastructure facility , Sufficient Furniture is needed for all customers.
CONCLUSION :

This institution training gave me the practical experience. It helps me to know

how the management terms are used and where it is applicable in the organization.
It gave me an experience of knowing about how to deal with Customers. Also I
have learned from my company that handling with a service is not important but in
what way it has the social responsibilities and how do the credit society members
to attain benefit by satisfaction on their services. The motivation of the
kanchepuram central cooperative bank is only Service to the Customers. They are
not aiming for the Huge Profits.

KANCHEPURAM CENTRAL COOPERATIVE

BANK
Name of the bank

kanchepuram central cooperative bank

Branch

guduvancherry branch

Location

32,First main road, Gandhi nagar,Chennai-600020

Business hours

9.00 AM To 4.30 PM (Monday to Friday) 9.00 AM To

11.00 AM (Saturday).

No of Staff
Service provided

4(including manager)
:

Savings &Current account, , Jewel loans, Deposit,

Safe deposit, Fixed deposit,Cash Certificate

MICR Code

600091001

IFSC Code

TNSC0000001

Deposits (Till date

31.12.2014)

Rs. 77,45,35,493.80

Loans (Till date

31.12.2014)

Rs.30,27,56,509.50

Net income

Rs.54,23,39.302