Report on Internship at

Pragathi Cooperative Society LTD

BY
Jayaraj
4SO17MBA10
Submitted to
VISVESVARAYA TECHNOLOGICAL UNIVERSITY, BELAGAVI
In partial fulfilment of the requirements for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION

Under the guidance of

INTERNAL GUIDE EXTERNAL

Dr Babitha Rohith Mr Preetham Dimello
Assistant Professor PCSL
Department of Business Administration Kulshekar
SJEC,Mangalore

Department of Business Administration

St Joseph Engineering College
Vamanjoor Mangalore-575028
2017-2019
 DECLARATION
I Jayaraj, hereby declare that the report on Internship at PCS LTD is prepared by me under the
guidance of Ms Babitha Rohith, Department of Business Administration and external assistance
by MrPreetham Dimello,Department Head,Pragathi Cooperative Society Ltd.
I also declare that this internship work is towards the partial fulfilment of the university regulations
for the award of degree of Master of Business Administration by Visvesvaraya Technological
University, Belagavi.
I have undergone the internship for a period of 4 weeks. I further declare that this report is based on
the original study undertaken by me and has not been submitted for the award of any degree/diploma
from any other University/Institution.

Place:
Date: Signature of the Student
ACKNOWLEDGEMENT

First of all, I express my sincere gratitude to DR Babitha Rohit, my guide whose guidance, valuable
suggestions and encouragement helped me to complete this internship report successfully.
I express my thanks to Mr. Preetham Demello, for his valuable guidance & the entire team of
Pragathi Cooperative Society LTD for the constant support and help in the successful completion of
my project
I express my sincere thanks to our beloved Dean, Dr. PRAKASH PINTO, for supporting in carrying
out this internship report.
I express my profound and sincere gratitude to Dr. Rio D’Souza Principal, St. Joseph Engineering
College, Vamanjoor for his support in carrying this report.
I thank all the MBA faculty members, my parents, and my friends for helping and encouraging me
during my internship. Finally, I would like thank for those who have helped me directly and indirectly
in completing my project.

Thank You

Signature of Student
 TABLE OF CONTENTS

CHAPTER PARTICULARS PAGE. NO.

1 INTRODUCTION 1-10
1.1 Introduction about the internship
1.2 Industry profile
2 ORGANISATION PROFILE 11-21
2.1 Back ground
2.2 Nature of business
2.3 Vision mission, quality policy
2.4 Product/ Service profile
2.5 Area of operation
2.6 Future growth and prospectus
2.7 Achievements

3 MCKINSEY 7S FRAME WORK 22-25

4 SWOT ANALYSIS 26-27

5 FINANCIAL STATEMENT 28-38

6 LEARNING EXPERIENCE 39
BIBLIOGRAPHY 40
 LIST OF TABLE
TABLE NO. PARTICULAR PAGE. NO

5.1 Balance sheet 28-30

5.2 Profit and loss A/C 32-33

5.3 Net worth ratio 35

5.4 Solvency ratio 36

5.5 Return on asset ratio 37

5.6 Current deposit ratio 38

 EXECUTIVE SUMMARY

Management is the process by which people, technology, job tasks and other resources are
combined and coordinated so as to effectively achieve organizational goal. The MBA course
offered by VTU, Belgaum, has its own unique syllabus which requires its MBA students to
undertake an internship with any of the industry for the period of 4 weeks.

For the purpose of acquiring practical knowledge of the working and functioning of the
company this study was conducted at Pragathi co-operative Society Ltd.. The main objective
of this study was:

 To study about the structure and functioning of society.

 To study how the management control various department for the attainment of the
organizational objective.

After referring to all the manuals study being conducted. The time spent at PCSL ltd. made
me to understand the amount of patience, perseverance, understanding, analysis, application
and dedication. PCSL higher authorities and employees being interviewed in order to get
accurate information. After working for 4 weeks whatever the information is collected is
being added to this report.

In this report, industry profile is explained. Co-op society, which affects the life of all citizens
in this era. No citizen can live without money.

This project contains 6 chapters, it includes introduction about internship and industry profile,
company profile, Mickensy 7 framework, SWOT analysis, analysis of financial statement,
learning experience.
This report was attempted to provide a detailed analysis of the process of how a to society
works. The report begins with the introduction about the internship project work and its
objective and its topic selected to the study of the report. The primary data of the society was
taken up by visiting the bank. The secondary data was obtained from books, journals and
website.
 CHAPTER 1

INTRODUCTION

1.1 INTRODUCTION ABOUT INTERNSHIP

As per the master of business administration course structure of Visvesvaraya Technology

University Belgaum, it is mandatory to undergo an “Internship Training “in between 2 and 3
semesters of the course for 4 weeks under the mentorship of an external guide in a reputed
Company. At the end of internship period, an internship report is submitted to the ST Joseph
engineering college. The internship is an initiative to bridge the gap between knowledge and
its application.

The internship report enables us to summarize the work done, express our learning and
experience and exposure in the practical world. This report comprises of own experience and
the work that I have performed as an intern in the organisation of my choice in the stipulated
period the report primarily focuses on the nature of work done and analysis of outcome of
internship programme. An internship report describes practical work life and knowledge
gained, showing us how different it is from theoretical knowledge. It is the complete
document which gives information about the specific tasks performed.

Need for the organisational study

This study is undertaken as a part of academic requirement for the award of MBA program
by VTU, Belagavi. This project work is a part of the academic study gives an opportunity to
study the overall exposure to the working of an organisation.

Industry profile
Definition of Cooperative Society
Section 4 of Indian co-operative societies act 1912 defines a cooperative as “a society which has its
objective, the promotion of economic interest of its members in accordance with co-operative
principles.”
Meaning

9
A co-operative society is a voluntary association started with a aim or goal of service of its members.
It is a form of business where the individuals belonging to the same class join their hands for the
promotion or achievement of their mutual or common goals.

Co-operatives in India
The cooperative movement in India owes its origin to agriculture and allied sectors. Towards the end
of the 19th century, the problems of rural indebtedness and the consequent conditions of farmers
created an environment for the chit funds and cooperative societies. The farmers

generally found the cooperative movement an attractive mechanism for pooling their meagre
resources for solving common problems relating to credit, supplies of inputs and marketing of
agricultural produce. The experience gained in the working of cooperatives led to the enactment of
Cooperative Credit Societies Act, 1904. Subsequently, a more comprehensive legislation called the
Cooperative Societies Act was enacted. This Act, inter alia, provided for the creation of the post of
registrar of cooperative societies and registration of cooperative societies for various purposes and
audit. The item "Cooperative Societies" is a State Subject under entry No.32 of the State List of the
Constitution of India.

With the emergence of national federations of cooperative societies in various functional areas and to
obviate the plethora of different laws governing the same types of societies, a need was felt for a
comprehensive Central legislation to consolidate the laws governing such cooperative societies.
Therefore, the Multi-State Cooperative Societies Act, 1984 was enacted by Parliament under Entry
No. 44 of the Union List of the Constitution of India.

Evolution Co-operative Movement in India

The history of cooperative societies in pre-independence era. The co-operative movement in the
Indian context in the pre-independence era can be classified into four phases:

a. Initiation stage (1904-1911):

In olden days non- institutional agencies in the shape of money-lenders were charging
exorbitant rates of interest from the helpless peasants. The situation was such that the farmers
were forced to sell their belongings to repay the debts. Ultimately the government understood
the miserable plight of the farmers and passed three Acts viz, the Deccan Agriculture Relief
Act (1879), the Land Improvement Loan Act (1883) and the Agriculturists Loan Act (1884).

10
 During 1892, the Madras Government appointed Frederick Nicholson to study the village
banks organized on co-operative lines in Germany. In the report he suggested to establish co-
operative societies for supplying rural credit. Famine Commission of 1901 strongly
recommended that in order to prevent famine, agriculturists should be granted loans to
improve agriculture. By 1904, the Co-operative Society Act was passed.

b. Modification stage (1912-1918):

The shortcomings of the Act of 1904 were rectified by enacting another Co-operative
Societies Act of 1912. The new Act provided legal protection to all types of co-operatives
including central financing agencies and supervising unions. The distinction between rural and
urban societies was given a new focus. The liability was limited in the case of primary
societies and unlimited for central societies.

In 1914 the Government appointed a committee under the chairmanship of Sir Edward Mac
Lagan to review the progress of co-operative movement. The report of the committee came
out in 1915.

c. Expansion stage (1919-29):

Under the Montague- Chelmsford Act of 1919, co-operation became a provincial subject
which gave further impetus to the movement. Various states passed their own Acts to make
co-operative movement a successful one. The membership of the co-operative societies
increased considerably during this period.

The same period also witnessed the birth of co-operative land mortgage banks first in Punjab
and subsequently land mortgage banks were registered in Madras (1925) and Bombay (1926).
The year 1929 witnessed a worldwide economic depression. The prices of the agricultural
commodities fell down to a remarkable extent. Unemployment along with other economic
crises grew up. The agriculturists could not pay back the loans of the societies. Over dues
increased unexpectedly and co-operative societies were ruined.

d. Restructuring stage (1930-1946):

Various enquiry committees, viz., Vijayaraghava Charya Committee in Madras,

Rehabilitation Enquiry Committees of Travancore and Mysore, Kale Committee in Gwalior,
Mehta and Bhansali Committee in Bombay and Wace Committee in Punjab etc. were
appointed for examining the possibilities of restructuring the co-operative societies.

11
 The Indian Central Banking Enquiry Committee (1931) highlighted the glaring lacunae,
particularly with reference to undue delays and inadequacy of credit. In 1937 the Congress
Ministry came to power in many states and revived interest in organising the cooperative
movement. They conducted enquiries about the failure of the cooperative societies and made
provisions for payment of overdue.

The abnormal conditions created by Second World War led to far-reaching developments in
the co-operative movement. Prices of agricultural commodities began to rise. The co-operative
societies gained in strength and vigour. The All India Co-operative Planning Committee in
1945 also gave a Philip to the growth of co-operative movement.

After India attained Independence in August, 1947, cooperatives assumed a great significance in
poverty removal and faster socio-economic growth. With the advent of the planning process,
cooperatives became an integral part of the Five Year Plans. The All-India Rural Credit Survey
Committee Report, 1954 recommended an integrated approach to cooperative credit and emphasised
the need for viable credit cooperative societies by expanding their area of operation, encouraging rural
savings and diversifying business.

In 1958 the National Development Council (NDC) had recommended a national policy on
cooperatives, there has been a substantial growth of this sector in diverse areas of the economy during
the past few decades. The number of all types of cooperatives increased from 1.81 lakh in 1950-51 to
4.53 lakh in 1996-97. Though the Cooperatives were lagging behind in rural credit till 1991, they
regained their prime place with 62% share in rural crop loans between 1991 and 2001.

12
Chart showing Banking structure of India

Reserve bank of
India(RBI)

Commercial Co-Operative
Regional Bank
Bank Bank

State Co- District Co- Primary Co-

Public Bank Private Bank operative operative operative
Societty Society society

Other
State Bank
Nationalized Indian Bank Forieng Bank
group
Bank

Other
SBI Associated
Bank

Reserve bank of India

The RBI was established on April 1935 with a share capital of Rs 5 crore on the basis of
Hilton young commission recommendation, and commenced its operation on 1sr April 1935.
The main functions of RBI are to issue currency notes of all denominations. Another
important function of RBI is to act as a government banker, agent and advisor and the RBI
act as a bankers bank and a lender of last resort. Commercial banks can expect the help from
RBI when there is financial crisis occurred. The RBI has to act as a custodian of foreign
exchange they have the responsibility to maintain the official exchange rate.

Commercial Banks

These form of banks come under the control of Reserve Bank of India. These banks accept
deposits from the public and providing loans and advances to their customers, and also
provide agency services to the public. In India commercial banks operate in public sector,
private sector and some are foreign banks.

13
Public sector banks

The public sector banks are the scheduled banks in which majority of shares are held by
government of India, and public sector banks are the largest group of banking system in
India.

Private sector banks

The private sector banks are those banks which are owned and operated by private persons.
The majority of shares are held by private persons and private banks were nationalized in the
year 1969.

Regional Rural Banks

Regional rural banks are rural level banking organised and operated in the different states of
India. The main objective of regional rural bank is to enhance the local participation of banks
to meet the financial requirements of weaker sections and it provides banking and other
services such as distribution of MGREGA wages, pension distribution, loans, debit and credit
card facilities.

Co-operative Banks

Co-operative banks are the small sized financial institution organised by co-operative sectors
which are operated in rural and urban areas. These banks are registered and governed by the
co-operative society‟s Act 1965 and Banking Regulation Act 1949. It helps to promote
savings habit among low and middle income groups of the society. It collects the funds
through issuing shares; accept deposit and granting loans and advances to the needy. They
providing short term, medium and long term advances to its customers.

Co-operative banks in India

The co-operative banks are small in size is controlled by a group of members jointly manage
and control the banking business. These banks are registered and governed by the
cooperatives society‟s act of 1965 and Banking Regulation Act 1949. Operating on the
principles of co-operation and deal in ordinary banking business. The main objective of the
bank is to extend credit facilities to agriculture as well as non-agricultural activities. It
promotes the habit of self-help among the low and middle income groups by accepting
deposits and granting loans and advances to its customers. Co-operative financial institution

14
belongs to its respective members who are the owners as well as customers of that
cooperative institution at the same time. Co-operative banks are created by a people
belonging to small community sharing a common goal and interest. These institutions are
providing financial aid to the people with a small means protects from money lenders. These
banks are controlled and managed on the basis of co-operative principles. In India total 1992
cooperative banking networks have been listed as per the records of RBI.

Current developments in Co-operative banks in India

The credit Co-operative banking institutions are the subsequent segment of Indian banking
system comprising of 14% of the total assets in the year 2007.

Volume of co-operative credit institutions operates in the village areas with rural co-operative
banks accounting for 67% of the total assets and 67% of the total branches for all the
cooperative banks.

Share capital of rural co-operatives in the total institutional credit was 62% in the year
19921993, 34% in the year 2002-2003 and 53% in the year 2007.

Co-operative banks have the impressive network of branches for institutional credit in India,
particularly in rural India there is one primary agricultural co-operative society per 7 villages.

In the year march 2007 there were 97,224 primary agricultural co-operative societies and
30393 branches of commercial banks. It is more than 3 times of outlet of total commercial
bank branches.

In rural area there were 102 savings bank account and 113 co-operative bank member
per1000 rural areas in the year march 2007.

15
STRUCTURE OF CO-OPERATIVE BANKS

Co-operative
bank

State co- Regional Co-

District Co-
Operative Operative
operative Bank
Bank Bank

State co-operative banks

These banks are the apex co-operative financial institution in the state level. It serves in
between the RBI and district co-operative bank. These banks are performing normal banking
operations such as granting subsidies to district co-operative bank for development of
cooperative activities. These banks are facilitate the state governments to implement the
development plans.

District co-operative banks

District co-operative banks are the district level co-operative financial institution act as the
intermediary between primary co-operative societies and state co-operative bank. They are

Co-operative bank

State co-operative bank

District cooperative bank

Primary cooperative societies

basically meeting the credit requirement of primary co-operative societies and undertake the
banking activities such as accepting deposits and advancing loans, collecting cheques, drafts
etc. and the area of operation is within the district.

16
Primary agricultural co-operative societies

Primary agricultural co-operative societies came into existence on after passing the
cooperative credit societies act of 1904. These societies are operating on the basis of
cooperative principles. These co-operative credit institutions are performing in village level
and providing short term and medium term loans for agricultural people. PACS helps to
formulate and implement the strategies for agricultural development for the welfare of its
members. The main functions of PACS are to borrow adequate funds from district co-
operative bank and to provide various loan and advances to its members and promote saving
habits if the members in the form share capital deposits.

17
 CHAPTER 2

ORGANISATION PROFILE

2.1 Background

Pragmatic Co Operative Society L.td began its work journey. since 1991. Its beginning
name was Kulshekar St. Joseph Thrift and Loan Co. Operative Society. With some
modifications, in the same year they changed the name to Pragmatic Co Operative Society Ltd
According to Banking Act 1959, Column 12e), Pragmatic Co Operative Society L.No 400
Kalpane kulshekar got registered under this act. This society covers the 1 18 working village.
Pragathi Co Operative Societies is established to provide loans to the messbers at low
rate of interest for production activities. They protest the members from the economies
exploitations by the local money lenders. They also help the members to develop habit of
saving
Once in a year Prasathi Cooperative Society conducts Annual General Body meeting
and presents its profit and loss account, Balance Sheet, Receipts and Payments and audit
report to its members. In this meeting profit distribution, dividend declaration suggestions
and changes are brought forward in the meeting. The quorum formed for Annual General
Meeting in 1/5th of total members of the society, 8 directors. Every once in a five years.
director is selected with voting's of the members
They started small scheme such as pigmy, deposits, fixed deposits with high rate of
interest, and mainly to provide loan against gold as security. Gold is the easiest way to
borrow loan at 13% interest rate with less documentation that is photo and Adhar card for
address proof. The Bank has not lagged behind in customer services, by computerizing all its
Branches and by introducing several innovative service activities.
It has situated its head office at Neermarga and have four branches situated Garpur
kaikamba, Shakthinagar, Kulshekar, Vamanjoor.

2.3 Nature of business

18
Pragathi Cooperative Society Ltd as a co-operative society is well known for undertaking
societal activity from last 18 years. It provides various products and services to its members
by means of various loan facilities such as gold loan, consumer durable loan, mortgage loan
and some other and by providing various deposit schemes such as fixed deposit, saving
deposit, recurring deposit, daily deposit. It also provides unique services in its deposit scheme
such as Lakshadheesha Yojana, Vidhyanidhi Yojana etc.

19
Promoters of the Society
Pragathi Cooperative Society Ltd was started its operation from 1999 with the hard work of
Ronald Castelino. Ronald Castelino became the president of the bank. Vivian D’souza,
Jeevan Vaaz, Joncy Sequeira, Victor Vaz, Donald Bantwal, Winnie D’souza were the
members of the society.

Board of Directors of Pragathi cooperative Society.

Board of Directors is a body of elected members who jointly manage the activities of the
organisation. Pragathi Cooperative Society Ltd has a Board of directors with 14 members.
The term of directors is 5 years and the quorum required for the meeting is 50% of elected
directors.

SL.no Name Designation

1. Ronald Castelino Chairman

2. Chaitra Secretary

3. Seema Sequeira Treasurer

4. Vivian D’souza, Member

5. Jeevan Vaaz Member

6. Mr. Lawrence Alvares Member

7. Joncy Sequeira Member

8. Donald Bantwal Member

9. Victor Vaz Member

10. Winnie D’souza Member

20
Chart showing Organisational structure of Pragathi cooperative Society.

Board of director

CEO

Senior Manager

Manager

Assistence Manager

2.3 Vision, Mission and Quality policy of the Society

Vision

 The main aim of this Society is to become the best co-operative society in Mangalore
and D.K.

Mission

 Offer best services to its members.

 People friendly products and services.
 Justice and Ethics to members.
 Technological growth and advancement.
 Providing innovative services.
 Empower and enrich the targeted society.

21
Quality policy

Pragathi Cooperative Society Ltd ltd as a service co-operative society is dedicated to became
the best society by providing Qualitative, innovative, service with care and concern for the
benefit of members.

Objectives of Pragathi cooperative Society.

Growth with mutual Co-operation between all the members of the Society.
 Formation and implementation of projects for the welfare of the backward people of
the society.
 Providing all types of loans to the members of the society.
 Providing loans to the production industries.
 Providing financial and technological encouragement to the unemployed to order to
help them to start a business.
 Satisfy the customers need by giving better timely and quick services.
 Building saving mentality among the community by providing attractive rate of
interest to their savings.

Membership

Any person who is a resident within the area of operation of the society and any person who
is eligible for enter into contract according to Indian Contract Act of 1872 section 11 is
eligible for membership. Any society, trust, company which is working under regulations of
government can also eligible for membership. The membership in the year 2011-2012 was
1600which has grown to 4797 in 2017-18. The given table shows membership Pragathi
Cooperative Society Ltd for the last 6 years period from 2011-2012 to 2017-2018.

22
Table showing total membership of the society

Year No. of Members

2011-2012 1600

2012-2013 1807
2013-2014 2050
2014-2015 2358
2015-2016 3354
2016-2017 4166
2017-2018 4797

The society wants to expand its business, by increasing its membership. It aims to increase its
members from 4797 to 5967 during 2018-2019 financial years.

Share capital

Pragathi Cooperative Society ltd has four types of share capital. These shares are issued to
members who are eligible to make a contract according to Indian Contract Act of 1872
section 11.

 „A‟ class shares: A class shares holders are having right to elect the board of the
society.
 „B‟ class shares: These types of shares are issued to government, registered
cooperative societies, trusts and companies. They are considered as the sub-members
of the society. These members should have at least one share of the bank to become a
member. They don‟t have right to vote in members meeting and they cannot
participate in internal affairs of the society.
 „C‟ class shares: These types of share are issued to the persons who are not coming
under both the above category („A‟ & „B‟). They enjoy the share in the profits of the
society.
 „D‟ class shares: It is also known as nominal shares. It is issued to those who doesn‟t
want to become a permanent member but wants to get some facilities from the society
for a short period of time.

23
2.4 PRODUCT AND SERVICES :
Pragathi Cooperative Society Ltd provides various product and services to its members
and they are:

Fixed Deposit

Fixed deposit is nothing but depositing fixed amount of money for a fixed period of time.
The minimum amount that can be deposited is Rs 500 and the period should be minimum
45 days. These fixed deposits should be renew before the expiry date. Interest rate for fixed
deposit is varying depending upon period. The interest rate starts from 7 % to a maximum of
12%. If deposit is made for more than a year and depositor is senior citizen then interest
rate will be 12%and for others 11 %will be given at present.

Interest Rates on fixed deposits

TYPES OF DEPOSITS CITIZEN SR. CITIZEN

SAVINGS ACCOUNT 6.00% 6.00%
FD 45 DAYS TO 180 DAYS 7.75% 8.00%
FD 181 DAYS TO 331 DAYS 8.25% 8.50%
FD 12 MONTHS TO 24 MONTHS 10.50% 11.00%
FD 12 MONTHS (IBS) Minimum Rs.10000 11.00% 11.50%
FD (IBS) 18 MONTHS TO 24 MONTHS 11.50% 12.00%
(Minimum Rs.25000)

24
Saving Bank Deposit

A saving bank deposit is small saving of members deposited into their savings bank account.
Every saving deposit has a pass book which will be issued by bank. The deposit can be
withdrawn at anytime. The interest rate on saving deposits always will be nominal and
society offers 6% for saving deposits.

Recurring Deposits

Recurring deposit is a type of term deposit offered by bank and it helps customers regular
having incomes to deposit a certain fixed amount every term say weekly, monthly or
quarterly into their Recurring Deposit account for a fixed period and earn interest at the
rate of 8%. It is as like as making FDs in any banks or societies.

INTEREST RATES ON RECURRING DEPOSITS

500 750 1000 1500 1700 2500 3000

12 MONTHS 6293 9447 12596 18894 21413 31490 37788

18 MONTHS 9664 14496 19328 28992 32858 48320 57984

24 MONTHS 13322 19983 26644 39966 45295 66610 79932

36 MONTHS 21037 31556 42074 63111 71526 105185 126222

48 MONTHS 30188 45282 60378 90564 102639 150940 181128

LOANS ANG ADVANCES

Mortgage loan

These loans are advanced to members of the society on the mortgage of landed property
held by them upto 60% of market valuation. Such properties are mortgage to the society till
the closer of the loan account. 14% rate of interest will be charged on mortgage loan.

25
Consumer Durable loan

These loans are finance option for purchasing of house hold item like Washing Machine,
Refrigerator, AC, LCD etc. 14.5% rate of interest will be charged on consumer Durables
loans.

Gold loan

Gold loan are given to the members of the society on the security of gold ornaments, not
exceeding 75% of the market value fixed by competent authorities from time to time. 14%
rate of interest is charged on loan amount as interest.

Vehicle loan

These loans are advanced to members of the society on the hypothecation of new motor
vehicles with at least one surety other than debtor who is also a member of the society.
Here 16% rate of interest is charged on old vehicle and 15%on new vehicle.

Business loan

This loan is allowed to business persons who are the members of the society, at 16%
interest rate.

Personal loan

These loan are given to the member of the society for housing repairing, education, medical,
marriage etc. 16% rate of interest is charged for personal loan.

Unique services provided by Pragathi cooperative Society.

Lakshadheesha Yojana

This scheme was started in the year 2013 when the society completed its 13 years.
According to this scheme members will get Rs 100000 after the fixed maturity period
depending upon their monthly deposits.

26
Table showing terms and amount to be invested to become Lakshadheesha

Monthly instalment (Rs) Period of maturity (in months)

1350 60
2450 36
3800 24

Vidhyanidhi Yojana

This scheme is also started in the year 2013 and the main purpose of this scheme to help
the poor people for the education and welfare of their children. According to this scheme
customer can invest fixed amount in the name of their children every month from the date
of its birth and till 10 years of age. When the child attain the age of 18 the child will get
Rs.100000 each year from 18-21 years and for the 5th year it will get Rs.108000. So in total
Rs.508000 will be available for the education of the children. The following table showing
the term and instalments amount to be invested under this scheme:

Table showing instalment and amount to be invested under Vidhyanidhi Yojana

Age (Months) Total instalments Monthly instalments (Rs)

(months)
0 120 1150
12 108 1300
24 96 1500
36 84 1800
48 72 2150
60 60 2700

27
2.5 Area of operation

Pragathi Cooperative Society Ltd

Kulshekar Road Gurupura

Mangalore Kaikamba,

Kalpane Mangalore
Kulshekar

Neermarga Vamanjoore

Mangalore Mangalore

Infrastructural Facilities

Pragathi Cooperative Society Ltd has excellent and well furnished branches and best
infrastructural facilities. Presently society has fully computerised and better equipped for
providing good banking facilities to the members. These facilities include security cameras,
good facilities in customer lobby, internet facility for quick service to customers. Lockers are
also provided in the branches for customers. The computerization of the bank makes
monitoring of work easy and provides faster societal services to the customers.

28
Information about Competitors

Though commercial banks are competing with co-operative banks, the main competitors are
other local co-operative societies and District co-operative banks like:

Shree Ramakrishna Credit Co-Operative Society

A leading credit co-operative society known for its excellence in customer service. The
society accepts deposits at attractive rates and extends credit at low rates of interest, with
nominal processing fees. It has awarded as „Best Co-operative Society‟ in Mangalore.

Bharath co-operative Bank

It is another strong co-operative bank which is operating all over the country. There are 21
branches operating across Karnataka out of this one branch is located in Mangalore. It is also
providing better services to customers in order to attract them.

Mangala Credit Co-Operative Society

Mangala credit co-operative society which is located in Mannagudda, Mangalore is also

consider competitors for the society. This bank is also offering very innovative services to its
customers to become a leader in banking market.

2.6 Future Growth and Prospects

. society has taken many steps for its future growth. They are:

 Introducing core banking facilities to the customer.

 Increasing membership by offering class banking facilities.
 Improving technology.
 Increasing turnover.
 The bank developing own website, to attract young generations.

2.7 Achievement and awards

 The society has been awarded A grade by the external auditors.

29
CHAPTER 3

MCKENSEY’S 7S FRAMEWORK

The seven –s model was developed by Mckinsey‟s is an important part of the organisation.
The two persons who developed this model were Tom Peters and Robert Waterman, who
were consultants at the Mckinsey‟s. They had published their 7S models in their respective
articles named, “The art of Japanese Management (1981)” and “In search of excellence 1982.

Mckinsey‟s and Co‟s 7S framework provides a useful framework for analysing the strategic
attributes of an organisation. In this model they said that each and every organisation is not
just a structure as it consists of 7 important elements. Strategy, structure and systems can be
considered as “Hardware” of success while style, staff, skills and shared values are
considered as the “Software”. These can be explained as follows

Soft “S”s

1. Skills: The capabilities and competencies that exist within the organisation are termed
as skills
2. Shared Values: The value and beliefs of the organisation ultimately guide employees
towards „Valued Behaviour‟.
3. Staff: The organisation, people resources and how they are developed, trained and
motivated.
4. Style: The leadership approach of top management and the organisation‟s overall
operating approach.

Hard “S”s

5. Strategy: The direction and scope of the organisation over the long term is known as
strategy.5.

6. Structure: The basic organisation, its departments, reporting lines, areas of expertise and
responsibility and also how they are inter- related.

7. Systems: These are formal and informal procedures that govern everyday activity,
covering everything from Management Information Systems (MIS), through the system at
the point of contact with the customer.

30
 Diagram showing Mckinsey’s and co’s 7S framework

Structure

Shared
Values Systems

Strategy

Skills Style

Staff

7S model with special reference Prahathi cooperative Society

1. STRUCTURE:
This society has a well organised body corporate. It consists of Board of Directors, CEO
Manager. The organisational structure are designed according to the rules and regulations
mentioned in the act. Following figure shows the detailed structure of Pragathi
Cooperative Society Ltd

Senior Manager

Manager

Assistence Manager

31
2. SKILLS:

Pragathi Cooperative Society Ltd Ltd is trying to update the knowledge of its staff members
in order to meet the requirements of its business goal as well as members requirements.
Training policies and programmes are suitably designed, modified and updated on a
continuous basis to improve the skills of the employees. Normally, 6 months training period
is fixed to a fresher staff and for others training will given on the requirements basis.

3.STYLE:

The conduct of the activity as well as management at each operational unit having effective
internal control. Branch manager is taking decisions individually, with in the laid down rules
and regulations and instructions given by the top management.

3. STRATEGY:

Being a co-operative society, strategy Pragathi Cooperative Society Ltd. Credit Society Ltd is
to become a premier among all co-operative societies in Dakshina Kannada and Udupi
district. The strategy includes concern for middle and lower level income group of society
and also to help the targeted community students in their education by providing education
loan to them in a considerably low interest. This will help the society to improve its goodwill.
Thus the above mentioned products and services are targeted towards developments of poor
people of target community of the society.

4. SYSTEM:

The systems and procedures of the society are very important to maintain transparent in the
books of accounts and to be liable for shareholders and board of directors. So it is well
defined and available to respective members and employees with clear instructions. This
systems and procedures will create good opinion in the minds of members and shareholders
of the society and finally help in development of the society.

5. STAFF:

The staff composition is well mixed both experienced and fresher are appointed as
employees. Pragathi Cooperative Society Ltd appoints an employee and trains him and makes
him expert in dealing with members sincerely and politely. In order to improve the efficiency
of the staffs all the facilities are given to them such as good salary with PF benefits, annual
increments are also provided. Incentives are also available for

32
employees who perform well. Yearend bonus to all staff members are given to motivate them
to excel better.

6. SHARED VALUE:

It is like invisible software which works very well when only the above 6S are successfully
completed.

33
Chapter 4

SWOT ANALYSIS

SWOT analysis is a process of defining and analysing organisation‟s Strength, Weakness,

Opportunities and Threats. Moreover, SWOT is a basic, analytical framework that assesses
what an entity can and cannot do. It is very helpful for the organisation to accomplish its pre-
determined goals.

Strength

Strength is internal factors which influence an organisation in achieving their objectives. It is

characteristics of the business or project that give it an advantage over others.

The major strength Pragathi Cooperative Society Ltd

 The society has successfully completed 18 years of services.

 Number of members are increasing every year in considerable rate. At present there
are 4797 members in the organisation.
 There are 3 branches are situated in Mumbai and 3 branches in Mangalore.
 The society maintained „A‟ grade rating in its audit report making profit every year.
 The society has better management structure.
 It gives more important on small business people and middle income group members.
 Good, hardworking and efficient staffs.

Weakness

Weakness is also an internal factor where the business needs to improve to remain
competitive. These are the adverse characteristics of the business that hinders the business.
Some of the weakness of Pragathi Cooperative Society Ltd are:

 Number of branches are less compare to the competitors.

 Mainly internet banking and mobile banking are not adopted.
 The area of operation is limited.
 There is a lack of business experience to the members of the society.
 Some of the customers are illiterate. So it will take time to deal with them.

34
Opportunities

Opportunities are external factors influencing the efficiency of the organisation which are
uncontrollable factors represent the growth of organisation in the external environment
and it helps the organisation to gain more profit. Some of the important opportunities that
the business has are:

 Increases the membership.

 Expansion of business by introducing new technologies, modern equipments to
attract the members from all walks of life.
 Recruiting skilled employees in order to increase the efficiency of the business work.
 The society expands more technology like introduction of debit card and credit card
facilities, innovative approach of co-operative society system.
 The society expands more technology like introduction of debit card and credit card
facilities, innovative approach of co-operative society system.
 Expansion of branches.

Threats

Threats are the external factors which affects the growth of the organisation. Major threats
facing by Pragathi Cooperative Society Ltd.

 The society facing competition from other co-operative as well as commercial banks.
 Technological developments.
 Government regulations.

35
CHAPTER-5

FINANCIAL STATEMENT ANALYSIS

Financial statement

Financial statement analysis is the use of analytical or financial tools to examine and compare
financial statements in order to make business decisions. It is the process of reviewing and
evaluating a company‟s financial statements (balance sheet and Profit and Loss Statement) to
know the financial health of the business.

5.1 Table showing Comparative Balance Sheet (Amount in Rs.000).

Particulars As on 2017 As on 2016 Absolute %

(in Lakhs) (in Lakhs) changes changes

Capital and Liabilities

1.Share capital
Authorised share capital 1500.00 1500.00 - -
Paid up share capital 112.04 107.20 4.84 4.53
2.Reserve and surplus 48.34 36.51 11.83 32.40
3.Other fund
Building fund 707.19 691.79 15.4 22.26
Provision for NPA 352.80 145.00 207.8 143.31
Provision for NPA Intrest 145.00 145.00 - -
Dividend Equilisation Fund 26.00 26.00 - -
Staff Welfare Fund 6.26 8.45 -2.19 -25.92
Member welfare Fund 9.78 9.78 - -
Provision for Training to Staff & 3.25 4.25 -1.00 -23.53
Director
Provision for Business Promotion 2.6234 19.74 -15.12 -76.59
Provision for Honorarium 1.61 3.61 -2 -55.40
Provision for Emergency Fund 5.00 - 5.00 -

36
4.Deposits
Fixed Deposits 14927.23 11821.17 3106.06 26.23
Recurring Deposits 1094.01 1104.36 -10.35 -0.94
Saving Deposits 811.49 673.30 138.19 20.52
Daily Deposits 52.54 43.52 9.02 20.73
5.Current Liabilities
Provision fir Internal & State 18.34 21.58 -3.24 -15.01
Audit fees
Salary payable 00.68 00.34 00.34 100
Interest payable on F.D 137.94 80.90 57.04 70.51
Interest payable on R.D 96.62 126.06 -29.44 -23.35
Interest payable on D.D 00.78 00.44 00.34 77.27
Unclaimed Dividend(2013-2014) 00.183 0.183 - -
Unclaimed Dividend (2014-2015) 00.24 00.24 - -
Unclaimed Dividend (2015-2016) 00.25 - 00.25 -
Insurance payable - 00.05 -00.05 -100
Telephone Exp. Payable 00.016 00.19 -0.174 -91.58
Electricity charges payable 00.098 00.16 -0.062 -38.75
TDS Payable 00.21 00.24 -0.03 -12.5
Bonus payable - 7.00 -7.00 -100
5.Bank OD
SDC Bank 122.13 66.45 55.68 83.79
Bharath Co-op. Bank 239.10 26.82 212.28 791.50
Bharath Co-Op. Bank- Ghansoli - 47.72 -47.72 -100
branch
6.Profit &Loss A/c
Profit of Last Year 00.007 00.03 -0.023 -76.67
Add: Current Year 48.00 46.63 1.37 2.94
Total 18969.75 15472.51 3497.24 22.60
Properties &Assets

1.Cash and Bank Balances

Cash in hand 61.57 92.75 -31.18 -33.62

37
Axis Bank-Mulund 00.78 00.23 0.55 239.13
Axis Bank-MGL 20.66 2.44 18.22 746.72
Axis Bank- MRD 02.61 23.14 -20.53 -88.72
Corporation Bank 00.27 2.44 -2.17 -88.93
Canara Bank 00.07 8.53 -8.46 99.18
DCB bank 23.63 00.15 23.48 -
Federal Bank 3.78 4.74 -0.96 -20.25
2.Investments
F.D with Abyudaya Co-op. Bank - 77.50 -77.50 -100
F.D with SDC Bank 210.00 - 210.00 -
F.D with Bharath co-op. Bank 282.19 177.11 105.08 59.33
3.Loans &Advances
Personal Loan 56.09 65.51 -9.42 -14.38
Against Deposit Loan 41.75 36.20 5.55 15.33
Home Appliance Loan 537.44 372.09 165.35 44.44
Business loan 704.74 340.50 364.24 106.97
Vehicle Loan 17.05 1.95 15.1 774.36
Cash Credit Loan 16806.38 14076.55 2729.83 19.39
4.Fixed Asset
Furniture and fixtures 4.91 5.32 -0.41 -7.70
Office equipment‟s 00.55 00.30 0.25 83.33
Computers 01.94 4.82 -2.88 -59.75
Software 00.19 00.47 -0.28 -59.57
Motor Cycle 00.49 00.58 -0.09 -15.52
Building Security Deposit 4.78 4.78 - -
5.Other Asset
Office at Sakinaka 90.00 90.00 - -
Office at Bhayander Manglore 57.76 57.76 - -
6.Intrest Accured: 40.12 26.45 13.67 51.68
Advanced Staff - 00.20 -00.20 -100
Total 18969.75 15472.51 3497.24 22.60

38
39
Profit and Loss Account

5.2 Table showing comparative profit and loss account

Particulars As on As on 2016 Absolute % changes

2017 (in Lakhs) changes
(in lakhs)
Expenditure
1.Interest Paid
Interest on FD 1521.38 1203.88 317.5 26.37
Interest on RD 112.15 112.32 -0.17 -0.15
Interest on D.D 2.16 1.74 0.42 24.14
Interest on Saving Deposits 24.32 19.60 4.72 24.08
Bank interest 20.86 9.45 11.41 120.74
2.Office expenses
Salary 63.61 74.83 -11.22 -14.99
Travelling Exp. 2.99 3.56 -0.57 -16.01
Postage and Telegram 00.22 00.21 0.01 4.76
Business Promotion 2.41 00.41 2 487.80
Conveyance 9.48 5.37 4.11 76.54
Telephone Charges 00.84 00.88 -0.04 -4.54
Electricity Charges 1.27 1.49 -0.22 -14.76
Computer Exp. 2.41 1.67 0.74 44.31
Donation 00.35 00.67 -0.32 -47.76
Printing And Stationary 3.39 2.87 0.52 18.12
Advertisement 5.97 5.66 0.31 5.48
Meetin Exp. 0.43 1.90 -1.47 -77.37
Misc Exp. 5.10 4.13 0.97 23.49
Office Exp. 4.42 2.89 1.53 52.94
Rent Rates & Taxes 24.53 23.33 1.2 5.14
Repairs & Maintenance 7.91 19.64 -11.73 -59.72
Commission Paid To Agents 34.58 27.61 6.97 25.24
Depreciation 3.88 1.74 2.14 122.99
Bank Charges 1.90 00.97 0.93 95.88

40
 Staff Welfare Exp. 3.19 2.59 0.6 23.17
Staff Incentives Accounts 2.47 1.39 1.08 77.70
Annual Maintenances - 1.37 -1.37 -100
Charges
Provision 9.44 543.35 -533.91 -98.26
Net Profit 48.00 46.63 1.37 2.93
Total 1920.70 2123.17 -202.47 -9.54
Income
1.Interest Received
Interest Received on Loan 1871.88 2111.62 -239.74 -11.35
Interest Received on Bank 46.22 11.29 34.93 309.40
Deposits
Interest on Bank Savings 2.14 - - -
Account
Miscellaneous Receipts 00.46 00.26 0.2 76.92
Total 1920.70 2123.17 -202.47 -9.53

INTERPETATION

The net profit of the society is increase from Rs.46.63lakhs as on 31st March 2016 to
Rs.48.00akhs as on 31st March 2017 with a increase of 2.93%, the current financial
performance of the society shows that company is making more profit.

41
RATIO ANALYSIS:

Ratio analysis is the process of analysing and interpreting numerical relationship based on
financial statements. It is the technique of interpretation of financial statements with the help
of accounting ratios derived from the balance sheet and profit and loss account.

USES OF RATIO ANALYSIS:

Ratio analysis is a technique of analysing the financial statements by calculating ratios.Here

are the uses of ratio analysis-

1. It is useful for inter firm comparison which implies that company compares its
performance with that of its industry peers.

2. It is useful in intra firm comparison which means that company will compare the
performance of various departments of the company so as to judge the best departments
within the company.

3. It is useful in simplifying the accounting figures to make them understandable to a

layman, because it is easier to understand ratios then plain figures.

4. It is also useful in forecasting and planning for the future, also it helps in control by
comparing the actual performance with that of forecasted performance and looking for
reason for it.

5. It is also used for analysis of financial statements by various interested parties like
bankers, creditors, supplier etc… for taking future decision about the company

42
5.3 SOLVENCY RATIO:
Solvency Ratio=Total Assets / Total liabilities
Table Showing Solvency Ratio

Years Total Assets Total Liabilities Ratio‟s

(in lakhs) (in lakhs)

2013-14 2115.31 2045.14 1.034

2014-15 6192.10 6119.18 1.011

2015-16 10623.54 10523.11 1.009

2016-17 18969.75 18857.71 1.006

solvency Ratios's
1.04
1.035
1.03
1.025
1.02
Ratio's

1.015
1.01
1.005
1
0.995
0.99
2013-14 2014-15 2015-16 2016-17
Years

INTERPRETATION
From the above table and graph it is clear that percentage of solvency ratio has been
Decreasing from year to year. This shows low capability of the society in its operation.
Solvency ratio is a key metric used to measure an a company ability to meet its debt and other
obligations. The solvency ratio indicates whether a company‟s cash flow is sufficient to meet
its short-term and long- term liabilities. The lower company solvency ratio, the greater the
probability that it will default on its debt obligations.

43
5.4 RETURN ON ASSETS RATIO:
This ratio expresses the relationship between net profit and total assets. It is show as follows:
Return on assets ratio= Net Profit/ Total assets *100

Table Showing Return on Asset Ratio

Years Net profits Total Assets Ratio’s
(in lakhs)

2013-14 22.35 2115.31 1.06

2014-15 30.76 6192.10 0.50

2015-16 40.84 10623.54 0.38

2016-17 48.00 18969.75 0.25

Return on Asset Ratio

1.2

0.8
Ratio's

0.6

0.4

0.2

0
2013-14 2014-15 2015-16 2016-17
Years

INTERPRETATION:

Return on assets ratio measures profitability of investment. High ratio indicates higher return
on investments. But the ratio has kept on decreasing from the year 2013 to 2017. This is not a
good sign. Here the society is keeps on purchasing fixed assets for the expansion of its
business. That is the reason for net profit showing downward trend.

44
5.5 CURRENT DEPOSIT RATIO
Current deposit ratio=loan/ deposit
Table Showing Credit Deposit Ratio
Years Loan Deposit Ratio’s
(in Lakhs) (in Lakhs)
2013-14 1842.18 1737.28 1.06

2014-15 6079.16 5507.63 1.10

2015-16 9298.93 8420.02 1.10

2016-17 18163.44 16885.27 1.07

Credit Deposite Ratio's

1.2

0.8
Ratio's

0.6

0.4

0.2

0
2013-14 2014-15 2015-16 2016-17
Years

INTERPRETATION:

In the above table we observe that the credit deposit ratio is fluctuating from year to year. The
society always trying to increase its operation. For that is showing more interest on deposits
rather than loans.

45
5.6 RESERVES TO EQUITY CAPITAL RATIO:
Reserves to Equity Capital Ratio=Reserve/Equity Capital

Years Reserve Equity Capital Ratio’s

2013-14 1.23 70.17 0.017

2014-15 6.94 72.92 0.095

2015-16 14.83 100.43 0.147

2016-17 48.33 112.04 0.431

Reserve to Equity capital Ratio

1.2
1
0.8
Ratio's

0.6
0.4
0.2
0
2013-14 2014-15 2015-16 2016-17
Years

INTERPRETATION:

From the above table and chart it is clear that reserve on equity capital is keeps on
changing. The reason for the same may be purchase of fixed assets. Because the society
purchases fixed assets like computer and furniture every year. Because of that reason the
reserves may lesser.

46
 CHAPTER-6
LEARNING EXPERIENCE
My internship started on 23th June 2018 in Pragathi Cooperative Society Ltd.
under the guidance of internal guide Dr Babitha Rohit Department of MBA and external
guide Preetham Demello Administration Manager, Pragathi Cooperative Society Ltd. for period
of 4 weeks and ended on 21st July 2018. This Society is a premier one in Kulshekar. I did this
internship as an academic by VTU. It gave me lot of experience.

This study highlighted that the society is mainly focusing on members‟ satisfaction through
various schemes. The study reveals that the society continues to identify new areas and
activities that require attention, for example the very unique schemes, Lakshadheesha Yojana,
Vidhyanidhi Yojana which help the customers to increase their saving habit and also helps to
meet future contingencies. Apart from this, this Society which is undertaking banking
activities will provide all the facilities other than agricultural loans. All these aspects helped
me to know the banking activities practically.

In the current era, every financial institution makes their best efforts to attract their potential
customers which resulted in cut throat competition in all branches of banking industry. So
Pragathi Cooperative Society Ltd Society should cope up with the latest technology to
provide better service to its members.

I gained some knowledge about the specific tasks:

 Filled cash receipts and withdrawal slip as and when customers wanted to deposit and
withdrew cash from their account.
 Recorded receipts and payaments of previous day in Chitta book by reffering Cash
Chitta Analysis.
 Completed the incomplete jewel bonds.
 Recorded details in Jewel Loan ledger as and when customers wanted to pledge their
gold.
 Filed receipts and payaments in a Receipts and payment file according to voucher
number.

47
 BIBLIOGRAPHY

BOOKS

 Pragathi Cooperative Society Ltd Annual report 2016-17: 2015-16:2014- 15:2013-

14

 “Election of Co-operative Society 2004” – 1st Edition

WEBSITES
WWW.GOOGLE,COM
WWW.WIKIPEDIA.COM
WWW.PCSL.COM

48