Report on Internship at

Teachers Co-operative Society Ltd.

By
Sunny Joy Dsouza
4SO17MBA50
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 GUIDE

Mr Vinish P Mr Ganapathi Upadhya
Assistant Professor Main Branch Manager
Department of Business Teachers’ Co-operative
Administration Bank Ltd.
SJEC

Department of Business Administration

St. Joseph Engineering College
Vamanjoor, Mangalore-575028
 Acknowledgement
I, first of all would thank and praise the almighty for having given me this day and this
opportunity. I wish to express my gratitude to those people who have presented me great
support directly or indirectly in completion of this internship report of 4 weeks.

I articulate my gratefulness to Mr. Pramod Hegde, the General Manager of Teachers Co-
operative Society Ltd. for permitting me to study this organisation and examine in depth the
aspects of it.

I earnestly express my gratitude to Mr. Ganapathi Upadhya, the accountant for acting as my
external guide at the organization and for his patience and extending precious guidance along
with all the staff members in different branches of the society for their kind cooperation,
assistance and involvement in sharing the core basic information relevant to the study.

I would like to express my deepest thanks to Dr Prakash Pinto, Dean and my internal guide
Mr. Vinish P, Assistant Professor at Department of Business Administration, St. Joseph
Engineering College for his valuable supervision throughout the work.

I also extend my heartfelt thanks to the Visvesvaraya Technological University for including
project report as a part of my Curriculum.

- Sunny Joy Dsouza

I
 Declaration
I Sunny Joy Dsouza, hereby declare that the report on internship at Teachers Co-operative
Society Ltd. is prepared by me under the guidance of Mr. Vinish P, Assistant Professor - St
Joseph Engineering College and external assistance by Mr. Ganapathi Upadhya, Main
Branch Manager, Teachers Co-operative 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: Udupi

Date: 15-10-2018
Signature of the Student

II
 Table of content

Sl No. Particulars Page No.

1 Executive summary
Chapter 1: Introduction
2 1-4
• Introduction about the Internship
• Industry Profile
Chapter 2: Organization Profile
• Background
• Nature of Business
3 • Vision, Mission, Quality Policy 5-14
• Product/service Profile
• Ownership Pattern
• Achievements/Awards if any
• Future growth and prospects
4 Chapter 3: McKenzie’s 7s Framework 15-20

5 Chapter 4: SWOT Analysis 20-24

6 Chapter 5: Analysis of financial statements 25-30

7 Chapter 6: Learning Experience 31-32

8 Bibliography 33

9 Annexure 34-35

III
 List of tables and graphs

Tables and Graph

Particulars Page No.
No.

Table 1.1 Comparison of Share Capital 6

Table 1.2 Product/Service Profile 9

Share Capital in the year 2015 and

Table 1.3 11
2016
Board Member of Society Since
Table 1.4 11-12
1980
Mckinsey's Hard and Soft
Table 1.5 16
Elements

Table 1.6 Return on Equity 26

Table 1.7 Return on Asset 26

Table 1.8 Proprietary Ratio 27

Table 1.9 Solvency Ratio 27-28

Table 2.0 Comparative Balance Sheet 28-29

Table 2.1 Trading Account 34

Table 2.2 Profit and Loss Account 34-35

Table 2.3 Balance Sheet 35

IV
 Executive summary
Cooperative societies play vital role in developing saving habits among people and promote
banking practices. Cooperative society is not a recent concept. In India societies were existent
way before independence. Cooperative societies have played a major role in supplying credit
to the agriculture sector and has bestowed hope to millions of farmers, agriculturists of our
country. National policy recommended on cooperatives by National Development Council
(NDC) in the year 1958 has been nourishing cooperative societies ever since. Cooperative
societies are restricted to a particular location and are controlled under 'Registrar of cooperative
societies'. The study confines itself on the working of the organization and is one dimensioned.

Teachers Co-operative Society Ltd. was established as a small ration distributing unit in the
year 1915. In time it has evolved wholesomely and made its way into banking industry,
expanding its branches, serving people of different background and gaining their trust. During
the short association with the bank, observations were made on the healthy treatment given to
the employees and enhancement in the financial status of the employees who have taken
advantage of the schemes and deposit facilities of the bank.

Like any other organization Teachers Co-operative Society Ltd. comprises of a staff, a strategy,
an organizational structure, a leader and employees. Proper alignment of these dynamics has
resulted in effective achievement of objectives, risk and opportunities tagged along. Consumer
satisfaction and convenience interaction has made it as attractive endeavour meanwhile it has
to triumph over certain setbacks. It has won many awards for its excellence. Further the society
has achieved great feat in cooperative sector but still there is a need to introduce the new
technology used by other banking organizations i.e. services like Core Banking System (CBS),
ATM facilities to improve customer strength.

In this sector the most used financial statements are the balance sheet and profit and loss
account, where the balance sheet shows the financial position and profit and loss account shows
the net profit or net loss of a society. Financial Ratio analysis provides great deal of data in
evaluating its performance. The study deals with the Financial Performance Analysis of the
society for the year 2016 and 2017.

The study exclusively educates on the fact that degree of satisfaction matters when it is a
question of mutual understanding between the banker and client.

IV
 Chapter 1

Introduction about Internship,

Industry Profile
Introduction about the Internship

Internship aims at intensifying the theoretical knowledge of the students with the practical
industrial knowledge. Internship helps in developing transferable skills such as
communications skills, interpersonal skills, technical skills, teamwork skills, management
skills and problem-solving skills. Through internship the students learn to deal with the real
life scenarios of the business.

Internship helps in developing a base for professional attitude; students can identify their
interests in a particular career. It also helps the employer to test the aptitude of the student and
the grade the intern for further employment. Each student is expected to be supervised by a
mentor throughout the internship. The student will need to fill in a monthly/weekly report to
report his/her progress during the internship whereas the mentor will need to give an appraisal
to the student on a monthly/weekly basis. An internship is job training for white collar and
professional careers. There are online websites like www.letsintern.com which offer paid
internship located at different places, interns can choose from a variety of companies and apply
according to their roles and opportunities.

Comprehensively internship provides a bird's eye view about the industry that the student is
interested in.

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
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.
Major Cooperative banks in India
➢ Saraswat Cooperative Bank Ltd
➢ Cosmos Cooperative Urban Bank Ltd
➢ Shamrao Vithal Cooperative Bank Ltd
➢ Abhyudaya Cooperative Bank Ltd

1
➢ Bharat Cooperative Bank Ltd
➢ TJSB Sahakari Bank

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).

2
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 world-wide 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.

3
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.

4
 Chapter 2

Organization Profile
Background of Teachers Co-operative Society Ltd.

It was owing to the abounding zeal and vision of the late Sri Molahalli Shiva Rao (that great
pioneer in the founding of co-operative society in South Kanara) that the teachers of Udupi
Taluk met together in 1915 in Udupi for the purpose of founding a co-operative society of
their own. The brave soul who, having taken his cue from Sri Molahalli Shiva Rao, took the
lead in organizing the teachers’ co-operative society with very modest objectives and who
rendered splendid yeoman service to it in the first view critical and vital years was Sri Shirali
Subba Rao, the then Headmaster of the Board High School, Udupi. In those days the High
School situated in the different towns which were Taluk Headquarters were rightly regarded
as very good centres of educational endeavour and the Headmasters of these school were
widely respected, so it came as no surprise that Sri Shirali Subba Rao, the then Headmaster
of the board high school, Udupi, performed devotedly and effectively the part which he took
on himself. Owing to his sincerity and his dedicated labour, the Co-operative Society throve
well it kept obtaining a growing measure of co-operation from the teachers in Udupi Taluk.

In the beginning, a hundred rupees was the maximum loan that

used to be granted to any teacher by the Society, which was
indeed very understandable as the membership numbered a mere
ten then, and the share capital was a mere five- hundred. After
Sri Shirali Subba Rao’s years of dedicated leadership, two
masterful personalities from Christian High School (the other
premier High School of Udupi then) nurtured the Society; these
were Mr. L.J. Salins (an Assistant Master of Christian High
Late Sri Shirali Subba School) and Mr. A.S. Karat. In course of time, the leadership
Rao swung back, as it were, to the Board high School, Udupi, and Sri
Founder Chairman K. Venkata Rao threw himself with characteristic energy into the
teachers’ co-operative venture and rendered his labour of love to
the Society.

In the beginning, a hundred rupees was the maximum loan that used to be granted to any
teacher by the Society, which was indeed very understandable as the membership numbered
a mere ten then, and the share capital was a mere five- hundred. After Sri Shirali Subba Rao’s
years of dedicated leadership, two masterful personalities from Christian High School (the
other premier High School of Udupi then) nurtured the Society; these were Mr. L.J. Salins

5
(an Assistant Master of Christian High School) and Mr. A.S. Karat (who was Headmaster of
the School for some years). In course of time, the leadership swung back, as it were, to the
Board high School, Udupi, and Sri K. Venkata Rao (who was Asst. Master in the Board High
School) threw himself with characteristic energy into the teachers’ co-operative venture and
rendered his labour of love to the Society. After him, it was given to Sri B. Shiva Rao, teacher,
St. Cecily’s Convent School, Udupi, to guide the Society with distinction.

After 1965 (i.e. after its fiftieth year, which, however passed without being marked by any
formal celebration of Golden Jubileee) its growth was at a very considerable rate. During this
period, the late Sri K. Honnayya Shetty (who later became the Editor of the Kannada weekly
Navayuga) and Sri B. Vittal Shetty were among the more active members of the executive
committee whose efforts in behalf of the Society proved so much to the purpose.

Over the years, the Society has done well not only by its timely aid to many a teacher but also
by inculcating in many of the teaching fraternity the saving habit which is so vital for the
growth whether of the nation or of the individual.

Table 1.1 Below is the comparison of Share capital, Deposit, Member loan, and Profit of the
year 1980 and 2017:

Particulars Year 1980 (₹) Year 2017 (₹)

Share capital 6201 37962405.00
Deposit 4664 2354751597.16
Member loan 8809 2036779146.00
Profit 2672 30288177.74

These comparative figures show that the society is in good progressive state.

6
Nature of Business

The word cooperative suggests working together with other for attainment of a common goal.
Thus, Teachers Co-operative Society Ltd. can be said of consisting following nature:

1. Voluntary membership
In Teachers Co-operative Society Ltd it can be called as a cardinal principle. A person who has
a common interest and is prepared to be abiding by the rules of the society has the right to join
the society as and when he wishes to do so, continue in it as long as he likes, and leave it at his
will.
2. Open membership
Apart from being voluntary in nature, the membership of a co-operative organization is open
to all irrespective of race, color, creed, caste, or sex. In Teachers Co-operative Society Ltd.,
every customer to the society compulsorily has to be the member of the society i.e. the customer
is required to pay a membership fee of ₹250 as cost of acquiring a share of the society.
3. Finances
The finances of a co-operative society are contributed by members through the purchase of
shares. Since co-operatives are generally formed to help the weaker and poorer sections of the
society, their capital collections are meager.
4. Service motive
Teachers Co-operative Society Ltd. is an organization established to provide credit for the
needy. It gives major priority in donating for the charity, providing for the educational
infrastructure like school books and uniforms. Teachers Co-operative Society Ltd. has a branch
established in 'Byndoor' which provides ration to the people. It imposes very less formalities
and procedure while obtaining loan so that the people become more familiar to the banking
practices.
5. Distribution of surplus
The surplus of profit is distributed in various aspects that contribute to the welfare of the
community and the society itself. Teachers Co-operative Society Ltd. divides its yearly profit
into building fund, government education fund, draft loan fund, members welfare fund,
employees aid fund, etc. Ensuring the funds are utilized optimally.

7
 6. Registration and legal status
Being voluntary in character, registration of a co-operative is optional. In India, co-operatives
desiring to be registered may do so under the Co-operative Societies Act, 1912, or relevant
State Co-operative Societies Acts. Teachers Co-operative Society Ltd. is registered under Co-
operative Societies Act, 1912.
The minimum essential conditions for getting a co-operative society registered:
(i) There must be at least 10 adult persons
(ii) The application should provide for essential information, e.g. name and
address of the society, its aims and objects, details of share capital, etc.
(iii) Along with the application must also be enclosed two copies of the
byelaws.
(iv) The Registrar after the scrutiny of the application, which must be duly signed by at least
10 members, and satisfying himself about the correctness of the co-operative society may issue
a certificate, under his seal and signature, and the society will now come into existence and
acquire the legal status.
6. Business enterprise
Teachers Co-operative Society Ltd engages in businesses with social responsibility. It plays a
meaningful economic role in the community life by serving and performing as efficiently and
responsively as the other financial and business enterprises. Cooperatives have to generate
surplus to be able to continually improve and expand its services. They have to be viable,
creative, enterprising, and efficient to continually grow and serve the needs of their members.
Increasing patronage cannot be maintained without good quality service, management, and
performance.
7. Education and training
Teachers Co-operative Society Ltd. provides extensive training to its employees with the
purpose of developing the cooperative into a well developed movement. Co-operation is an
idea which is simple in theory, but difficult in practice. All of us agree that co-operation is
good, useful, and essential, but when we translate the concept into action, bottlenecks block
our paths, views clash, and sentiments come in the way.

Vision of Teachers Co-operative Society Ltd.

"To fulfil its role in a responsible manner and to provide quick and quality service to customers
to keep the customers at ease while operating"

8
Mission of Teachers Co-operative Society Ltd.

"To be a leading global customer-focused and competitive society by providing good financial
service to its customers and also to satisfy each and every person who is linked with the society

Quality Policy

"We the members of Teachers Co-operative Society Ltd. are committed to social and economic
development of the community and achieve highest level of customer satisfaction"

Product /Service Profile of Teachers Co-operative Society Ltd.

The society provides 15% dividend to its shareholders. The society works as an independent
and self-contained association. In the past 103 years it has never borrowed and loan from any
institution, commercial banks or individuals. The service profile of Teachers Co-operative
Society Ltd. Includes

Table 1.2 *as per year 2016-17

Fixed Deposit
46 days to 90 days 7.50%
91 days to 180 days 8.50%
181 days to364 days 9.00%
1 year and above 9.50%
Deposits for Senior Citizen
1 year and above 10.00%
Chethana Cash Certificate
1 year and above (amount doubles in 86 months) 9.50%
Recurring Deposit
1 year and above but less than 3 years 9.50%
3 year and above 10.00%
Savings Bank Account 5.00%
Daily Deposit Pigmy
For a period of 12 months 4.00%

9
Other services provided by Teachers Co-operative Society Ltd. are:
• Loans
1. Jewel Loan
2. Vehicle Loan
3. Medium Term Loan
4. Short Term Loan
5. Medium Term Secured Loan
6. Housing Loan
7. Secured Loan
8. Project Loan
• Western Union Money Transfer
• Safe Deposit Locker Facilities
• E-stamping
• LIC Bhagya Laxmi Policy
• Yashaswini Health Card
• NEFT/RTGS
• Teachers Co-operative Society Ltd. owns one godown at Thenkapete where essential
commodities are sold on the ration card holders through fair price shops
• Electronic card holding cash upto ₹50,000 a product of ICICI Bank

Ownership Pattern
Teachers Co-operative Society Ltd. was established in the year 1915. Since then it has been
managed by various personnel. A society has no physical existence. It is created by law and
enjoys certain rights and privileges of a natural person. It cannot act on its own thus it requires
competent personnel to administer itself. Thus, the activities and decisions are entrusted to the
board of directors who are elected from amongst the shareholders. Board of Directors lay down
the Banks policies and directs the company's affairs.
The share capital of Teachers Co-operative Society Ltd. includes the capital contributed by the
'A' class members. 'D' class members, and 'E' class members.

Table 1.3 Share capital of different members of different division in 2015-16 and 2016-17 is
as follows:

10
 No. of No. of
Divisions 2015-16 2016-17
members members
'A' Class Share Capital 2,698 65,59,900.00 2,725 67,14,260.00
'D' Class Share Capital 14,498 2,63,30,600.00 15,167 2,91,38,825.00
'E' Class Share Capital 101 17,80,150.00 109 20,59,600.00
'C' Class Share Capital 4,754 43,550.00 5,646 49,720.00
Total 22,051 3,47,14,200.00 23,647 3,79,62,405.00

Board of Directors:

Sri. Sundara A.
Sri. Kishan Raj Shetty.
Vice President
President

Directors:

Sri K. Manjunath Shetty Sri. C. Ashok Kumar Dr. Ram Mohan Pai B Sri. Ashok Kumar
Hegde Shetty

Sri Rajesh K.C Smt. Sharavathi U.R Sri Balakrishna Shetty Sri G.Damodar Shastri
M.

11
 Sri Mahadeva Manja Sri M Bhaskar Mayya Sri Ravindra Hegde Sri Santosh Kumar
Shetty

Sri. Vishwanath Shetty Sri Dr.Rajendra K Sri M. Ganesh Kumar Dr. Roshan Kumar
Shetty Shetty

Smt. Nagarathna S Sri. Pramod Hegde G

General Manager

Achievements/Awards

Teachers Co-operative Society Ltd. has bagged many awards and recognitions for its
service and achievement in betterment of the society and its customers. Below are some
notable achievements of Teachers Co-operative Society Ltd.:

• 'Best Credit Cooperative Society' of Udupi award in the year 2003-04, 2004-05 and
appreciation letter

12
• 'All India Business and Community Foundation' award from new Delhi

• 'Individual Achievement and National Development' award

• 'Indian Organization for Business Organization for Commerce and Industry' from new
Delhi

• 'Lifetime achievement' award with gold medal

• 'Rashtriya Udyoga Ratna' award

• The society has received the 'National award for Cooperative excellence'. 'Award for
Excellence-2012' by the Udupi chamber of commerce.

• Teachers Co-operative Society Ltd. has been the only society to secure 'Biennial award
for Co-operative Excellence' state level award for the 2nd time from central government
for its excellence in Cooperative banking administration

• State Level Award “Centenary Award of Karnataka State Co-operation Movement” at

Centennial Financing Ceremony of Co-operative Movement in Mysore

Future growth and prospects

Teachers Co-operative Society Ltd. has been successful in edging the competition from the
commercial banks and tends to continue the business with fine economic flow. It has
supremacy in its facility of providing loans. The convenience factor compels the customer to
deposit their savings and obtain loans. Working for the welfare of the society has always been
one of the strong motive of the society, it has laid down some plans for its growth in the
coming years.

• A plan to accumulate ₹250 crores of deposit followed by loans accordingly and a

minimum annual business of ₹1500 crores
• To organize 'Vanamahotsava' within the workflow of the association in order to spread
awareness about environment to the people
• To shift and fully equip the branch of 'Belthangady' to a different building. Shift the office
in 'Byndoor' branch from 1st floor to ground floor. And to buy all the branches that are
held by rent
• Increase the quality of service by furnishing new technology and advanced equipments in
the society
• Cleanliness Campaign to protect the environment around the society

13
• Identifying the handicapped from the family of its members and providing financial help.
Also providing three-wheeler vehicle if necessary
• Installation of drinking water facilities in deprived areas of the community and to build
hospital and bus stands
• Offering 1% discount to the loan borrower who has successfully paid the complete loan
amount on time
• To form a loan repayment squad, give more importance to loan repayment and to keep
the unproductive loan at the minimum
• To organize Health camps, Consumer education sessions and lot more social development
activities as conducted last year by Teachers Co-operative Society Ltd.
• Schemes to improve the poor economic condition of the society, to improve the economic
situation of women and bestow financial help

To improve the business of the organization, deposit and loan protocol, staff service
provisions, and rectify any other provisions

14
 Chapter 3

McKinsey's 7s Framework
with Special Reference to
Organisation
McKinsey's 7s framework with special reference to Teachers Co-Operative
Society Ltd.

While some models of organizational effectiveness go in and out of fashion, one that has
persisted is the McKinsey's 7-S framework. Developed in the early 1980s by Tom Peters and
Robert Waterman, two consultants working at the McKinsey & Company consulting firm, the
basic premise of the model is that there are seven internal aspects of an organization that need
to be aligned if it is to be successful.

This tool helps in understanding how the organization elements are interrelated and how can
they be aligned to improve the performance when changes take place. Changes like
restructuring, new process, change of leadership, etc. The 7-S framework can be used to find
out the inconsistencies between these 7 elements. The model is based on the theory that, for an
organization to perform well, these seven elements need to be aligned and mutually reinforcing.
So, the model can be used to help identify what needs to be realigned to improve performance.

Basically the 7 elements in McKinsey's 7-S framework help in evaluating the inconsistencies
lying in the organization. It helps to ask the right question but rarely provide answers to all
questions. This model is most helpful in developing strategy. In other words, each element can
be considered and questions can be asked to evaluate the aspects within each element.

For example: Style (one of the elements in McKinsey 7-S framework model)

a. What kind of leadership style is used?

b. Is the leadership style effective?
c. Do the employees tend to be cooperative or competitive?
So, basically this tool can be used in a wide variety of situations where an alignment perspective
is useful, for example:
• Improve the performance of a company
• Examine the likely effects of future changes within a company
• Align departments and processes during a merger or acquisition
• Determine how best to implement a proposed strategy

15
Table 1.5 McKinsey's 7 independent elements are categorized as 'hard' and 'soft' elements.

Hard elements Soft elements

Strategy Shared Values

Structure Skills
Systems Style
Staff

"Hard" elements are easier to define or identify and management can directly influence them:
These are strategy statements; organization charts and reporting lines; and formal processes
and IT systems.
"Soft" elements, on the other hand, can be more difficult to describe, and are less tangible and
more influenced by culture. However, these soft elements are as important as the hard elements
if the organization is going to be successful.
The way the model is presented in Figure 1 below depicts the interdependency of the elements
and indicates how a change in one affects all the others:
1. Strategy:
In an organization it is the plan devised to maintain and build competitive advantage over its
competitors. Forming viable strategy becomes very essential in a cooperative society to
function smoothly. The strategy Teachers Co-Operative Society Ltd. has worked like a charm

16
in securing potential customers. The strategies of Teachers Co-Operative Society Ltd. could be
stated as:
• Growth and expansion: This has helped the society in effectively responding to the
environmental changes, to gain a competitive advantage over their competitors and increase
the membership of the society
• Cooperative awareness: Cooperate can be propagated through many media channels.
Teachers Co-Operative Society Ltd. does the same by donating and contributing to
educational institutions and other backward communities expansively. This initiates an
awareness chain among the people, also it propagates through newspapers, meeting,
personal contacts.

2. Structure:

Shareholder

Board of
Director

President

Vice President

Director

General
Manager

Sales Branch Manager Accountant

Senior Clerk

Junior Clerk

Sales Assistant

Attender

17
It is the way the society is prearranged and who reports to whom. Organization structure is the
backbone of management. Sound organization structure contributes greatly to the success of
the enterprise. An organizational chart is a dramatic representation which shows the important
aspects of an organization including major functions and their respective relationship. It
enables each executive and employee to understand his position in the organization.
Organization structure is fundamental to create salary structure for an organization.

3. System:
Daily activities and procedures needed to be performed to get the work done and how decisions
are made. Systems are the area of the firm that determines how business is done and it should
be the main focus for managers during organizational change.
• Creating awareness about savings, Self Help Group, co-operation among member and
modern agriculture system among the members
• Raising income from members by helping them to undertake handicrafts, animal
husbandry, poultry farming, etc.
• Establishing branches to express the convenience factor to the customers so that they can
access the services nearby their location
• Providing financial and technical help to small scale industries, cottage industries, transport
operations and help self employed persons for setting up their own business

4. Shared Values:
It is the core value of the company influenced by the corporate culture and general work ethic.
Shared Values are at the core of McKinsey 7s model. They are the norms and standards that
guide employee behavior and company actions and thus, are the foundation of every
organization. The main motive behind the assimilation of society is to regulate the credit in the
society. The dream of the founder on establishing this society was to improve the economic
condition of the farmers and small business owner who have their potential locked up because
of inadequate financial supply.
The 7s model revolves around shared value element. Shared value in a society refers to the
corporate culture that the organization has developed, it is not possible to create corporate
culture at once. Shared value is considered very crucial because it is a psychological attribute
that every single person at the organization has work on. A good shared value creates
appreciative attitude towards others and allows the organization to carry on with good ethics.

18
5. Style:
The style of leadership adopted in Teachers Co-Operative Society Ltd. is an autocratic one. It
represents the way the company is managed by top-level managers, how they interact, what
actions do they take and their symbolic value. In other words, it is the management style of
company’s leaders. The directors take most of the financial decisions for the company. The
management also follows Democratic leadership style.

6. Staff:
There are number of employees in Teachers Co-Operative Society Ltd., each of them is trained
in the initial period of their work to be effective and self-sufficient.
• Manpower planning: It is the process by which a firm ensures that it has the right number
of people and right kind of people at the right place and at right time of doing work
• Staff Meetings: A meeting is conducted for the members or the staff to discuss the issues
relating to the running of the company and evaluate performance of the staff. The meeting
is usually held once in a month
• Training and development: It is a process of learning sequenced behavior. It attempts to
improve their performance on the current job accordingly prepare them for an intended job.
It achieves changes in the Knowledge, Skills and Attitudes
• Employee appraisal: It enables the employee to know how they are performing in
comparison with the set standards. Teachers Co-Operative Society Ltd. follows this; here
the assistant's grade will be evaluated by the managers or the senior officers. Self-appraisal
system is undertaken for senior officers and executives.
• Promotions: Only after considering the following promotion will be granted in Teachers
Co-Operative Society Ltd.
⎯ Marks allotted in performance appraisal event
⎯ Marks in the interview
⎯ Willingness of the employees to take up higher responsibilities
⎯ Year of service etc

19
7. Skill:
Skills are the abilities that society's employees perform very well. They also include
capabilities and competences. During organizational change, the question often arises of what
skills the company will really need to reinforce its new strategy or new structure. The
employees are trained to gain these skills. An annual study tour is held to teach the
competencies in a unique way.

20
 Chapter 4

SWOT Analysis
 SWOT analysis of Teachers Co-Operative Society Ltd.

The point of a SWOT analysis is to help you develop a strong business strategy by making sure
you’ve considered all of your business’s strengths and weaknesses, as well as the opportunities
and threats it faces in the marketplace. As you might have guessed from that last sentence,
S.W.O.T. is an acronym that stands for Strengths, Weaknesses, Opportunities, and Threats. A
SWOT analysis is an organized list of your business’s greatest strengths, weaknesses,
opportunities, and threats.

Strengths and weaknesses are internal to the company (think: reputation, patents, location).
You can change them over time but not without some work. Opportunities and threats are
external (think: suppliers, competitors, prices) - they are out there in the market, happening
whether you like it or not. You can’t change them. Existing businesses can use a SWOT
analysis, at any time, to assess a changing environment and respond proactively.

New businesses should use a SWOT analysis as a part of their planning process. There is no
“one size fits all” plan for your business and thinking about your new business in terms of its
unique “SWOTs” will put you on the right track right away and save you from a lot of
headaches later on.

The SWOT of Teachers Co-Operative Society Ltd. can be drafted as below:

Strength

Teachers Co-Operative Society's strength lies in its human resource. The hard work and the
cooperation of the employees helped the society to be recognized at the national level. The
professional management, committed leadership to the principles of cooperation, mutual win-
win relationship with the customer, has helped it to be a leader among cooperative societies.
Some of the strengths of Teachers Co-Operative Society Ltd. are:

21
• Employees are given certain quotas, tasks to complete for each month. Tasks like creating
RD a/c, issuing loans, etc.
• The targets are set in percentage growth rather than comparing it as growth from last month
• Employees at Teachers Co-Operative Society Ltd. give efficient performance in completing
the tasks
• Employees involve in canvassing to secure more deposits and increase the number of
accounts to be created
• In Teachers Co-Operative Society Ltd the customers can avail loan or make deposits even
in the final working hours.
• Teachers Co-Operative Society Ltd. offers interest at lower rate for housing loans. It
charges higher rates on loans when compared to commercial banks but the interest charged
is applied on a simple rate system instead of compounding the same
• The deposits visibly offer higher returns than the commercial banks
• The location confinement of Udupi taluk grants a great deal in avoiding competition
• Strong, transparent and informed leadership of Mr. Pramod Hegde G.
• Presence of experienced staff in every branch
• Positive image of the society producing good reputation
• Hardly stringent credit facilities

Weakness

This is one other internal factor of Teachers Co-Operative Society Ltd. These are the factors
that hold the organization from performing at an optimum level. These are the areas where the
business needs to improve to remain competitive. Some weaknesses of the society are as
follows:

• The location confinement can also be a weakness for cooperative societies. In the sense
that, the society cannot extend its membership outside its jurisdiction
• The limited rights vested for cooperatives during demonetization severely affected the
business of Teachers Co-Operative Society Ltd. The cooperatives were not given the rights
to exchange old notes with new ones by the government
• The society failed to secure effective number of deposits on account of demonetization.
According to the employees at Teachers Co-Operative Society Ltd. the 3 months of
demonetization were the most unproductive
• Pressure and demand from the members because of promise during the election period

22
• Increasing poverty levels and inflation forcing members to seek cheap financial support i.e.
perpetual borrowers
• As Teachers Co-Operative Society Ltd. employs easy obtaining of loans there are more
number of borrowers than savers

Opportunity
This is an external factor that an organization can use to give it a competitive advantage. These
positive factors are not controlled by the organization. Teachers Co-Operative Society Ltd. has
the following opportunities:
• Society's injection into local places, rural areas
• Ability to gratify the unsatisfied demands from the members/customers
• Favorable amendments to the Co-operative Societies Act, rules and bylaws i.e. Open
membership, diversity in other products
• Advancement and growth in technology and equipping the same in the society
• Potential to attract more membership because of its financial stability and good customer
service
• The convenience in obtaining loan compared to commercial banks
• The increased rate of interest on deposits for senior citizens
• 'Chethana Cash Certificate' a cash certificate of Teachers Co-Operative Society Ltd. is a
worthy investment for the middle class people.
Threats
It is the second negative factor that an organization needs to avoid or overcome with a good
proposed strategic plan. In other words, threats hold back the organization from giving its best.
The threats for a cooperative society could be from the competitors (commercial banks, town
banks, micro finance institutions, cooperative banks and other cooperative societies).
• Intervention of tax authorities:
a. The repetitive intervention of income tax departments into the accounts of the society
b. Intervention regarding tax returns on deposits and interest paid to the customers
c. The tax is paid on the interest gained by the head office from all the departments
collectively
• Threats from new entrants:
a) To engross a realistic scenario, Main branch of Udupi taluk there are an array of 19 banks
including cooperative societies and town banks

23
b) A neighboring cooperative society to Teachers Co-Operative Society Ltd. in 'Kundapur'
offered higher interest rates on deposits at the time of its establishment in order to get more
number of customers and boost the deposits at once
c) In the long run the rates of all the cooperative societies become similar.
• Cooperative societies have been a way for money laundering and black money transaction
due to lose tax procedures/implementation
• Changes in policy and legal framework
• Ageing membership
• Increasing poverty levels and inflation

24
 Chapter 5

Analysis of Financial
Statements
Financial statement analysis of Teachers Co-Operative Society Ltd.

Financial statements (or financial report) is a formal record of the financial activities and
position of a business, person, or other entity. Relevant financial information is presented in a
structured manner and in a form easy to understand. They typically include basic financial
statements, accompanied by a management discussion and analysis:

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

and owners equity at a given point in time
• An income statement or statement of comprehensive income, statement of revenue &
expense, P&L or profit and loss report, reports on a company's income, expenses, and
profits over a period of time. A profit and loss statement provides information on the
operation of the enterprise. These include sales and the various expenses incurred during
the stated period
Financial statement analysis is the process of reviewing and analyzing a company's financial
statements to make better economic decisions.

User of financial statements

1. Creditors
In a banking profession the customer who deposits his savings into the bank or society
automatically become creditor to the society. Anyone who has lent money to an organization
expecting his fair share of return and is interested in the activities of the organization is
debtor
2. Investors
Investors are one who closely examine the affairs of an organization so that the organization is
capable to continue issuing dividends. The investors are the members of the society and in
Teachers Co-Operative Society Ltd. every customer having an account is a member to the
society.
The society has been continuously declaring dividends since 1990. Currently the society is
paying 15% dividend to their shareholder.
3. Management
The management has to evaluate the performance of the organization. The controller has to
prepare an ongoing analysis of company's financial status.

25
4. Regulatory authorities
Financial statements are vital for the authorities and income tax departments to examine the
various accounting standards and to check the viability of the accounting transactions.

Calculation of Ratios

1. Return on Equity
Return on Equity is the ratio that provides with the insight into how efficiently a company is
managing the equity that shareholders have contributed to the company.
Table 1.6 Return on Equity of Teachers Co-Operative Society Ltd. is calculated as
follows :

Year Net income/ Return on Equity

Shareholder’s
Equity*100
2015-16 2,02,99,704.06/3,47,14,200.00 58.47%
2016-17 3,02,88,177.74/3,79,62,405.00 79.78%

Interpretation:
Return on Equity of the financial year 2016-17 (79.78%) is higher than in the previous year
2015-16 (58.47%), which implies that Teachers Co-Operative Society Ltd.'s ability has
increased to generate profit without needing much capital.

2. Return on Assets
Return on assets is a financial ratio which shows the percentage profit a company earns on
relation to its overall resources. Return on assets figures gives investors an idea of how
effectively the company is converting the money it has to invest into net income.

26
 Table 1.7 Return on assets of Teachers Co-Operative Society Ltd. is calculated as
follows:

Year Net income / Total Return on Assets

Assets*100
2015-16 2,02,99,704.06/2,63,54,55,425.44 0.77%
2016-17 3,02,88,177.74/313,48,61,779.79 0.96%

Interpretation:
Teachers Co-Operative Society Ltd.'s return on assets has increased from 0.77% to 0.96%
indicating that company’s profit has increased when compared to previous year.

3. Proprietary Ratio
The proprietary ratio (is also known as equity ratio) is the proportion of shareholder’s equity
to total assets. If the ratio is high, this indicates that a company has sufficient amount of equity
to support the functions of business. A low ratio indicates that a business may be making use
of too much debt or trade payables, rather than equity. Thus, the equity ratio is a general
indicator of financial stability. To calculate the proprietary ratio, divide the total shareholder’s
equity by total assets.
Table 1.8 Proprietary Ratio of Teachers Co-Operative Society Ltd. is calculated as
follows:

Year Shareholder's Fund/Total Proprietary Ratio

assets*100
2015-16 3,47,14,200.00/2,63,54,55,425.44 1.31%
2016-17 3,79,62,405.00/313,48,61,779.79 1.21%

Interpretation:
Teachers Co-Operative Society Ltd.'s proprietary ratio has declined from 1.31% to 1.21%
which shows that there is a need use equity.

4. Solvency Ratio

Solvency Ratio is also called as leverage ratio, measure a company’s ability to sustain
operations indefinitely by comparing debt levels with equity, assets and earnings. In other

27
words, Solvency ratios identify going concern issues and a firm’s ability to pay its bill in the
long term. Moreover, the solvency ratio quantifies the size of a company’s after tax income,
not counting non-cash depreciation expenses.

Table 1.9 The Solvency Ratio of Teachers Co-Operative Society Ltd. is as follows:

Year Total assets Deposits/ external Solvency ratio

liabilities

2015-16 2,63,54,55,425.44 202,78,81,003.17 76.94%

2016-17 313,48,61,779.79 235,47,51,597.16 75.11%

Interpretation:

The solvency ratio of Teachers Co-Operative Society Ltd. for the year 2016 and 2017 shows
that the society has good debt paying ability but some progress is needed

5. Net Profit Ratio

The net profit percentage is the ratio of after tax profits to the net sales. It reveals remaining
profits after all the cost of production, administration, and financing have been deducted from
sales and income taxes recognized.
Net Profit ratio of Teachers Co-Operative Society Ltd. is calculated as below:
Year Net income / Net Sales Net profit ratio
2015-16 2,02,99,704.06/3,17,857.50 63.86
2016-17 3,02,88,177.74/3,65,419.50 82.88

Comparative Balance Sheet

The Comparative Balance Sheet dependably indicates increment and lessening in the total
terms and also rates in different liabilities, assets, capital. A relative accounting report or
Comparative Balance Sheet of the two years or two periods give data in regards to advance of
the business firm. Comparative Balance Sheet helps in understanding where the organization
needs to make improvement. It helps to comprehend why the deviations happens from one
financial year to the other. The managers can easily rectify the imprecision.

28
 Table 2.0 Comparative Balance Sheet of Teachers Co-Operative Society Ltd.:

Assets 31-3-2016(₹) 31-3-2017(₹) Change (₹) % Change

Cash in hand 66,70,555.09 48,22,282.19 -18,48,272.9 -27%
Cash at bank 10,61,56,437.65 12,07,72,022.27 1,46,15,584.62 13.76%
Investments 47,76,26,571.83 65,42,08,237.74 17,65,81,665.91 36.97%
Loans and Advances:
i. Members 1,80,37,64,186.73 203,67,79,146.00 23,30,14,959.27 12.91%
ii. Staff loan 27,03,950.00 23,74,202.00 -3,29,748.00 -12.19%
Fixed and Current assets 3,62,23,314.96 4,68,14,062.96 10, 590,748.00 29.23%
Other assets 4,91,384.92 20,21,170.15 15,29,785.23 311.32%
Branch Adjustment 20,18,17,932.30 26,70,59,123.52 6,52,41,191.22 32.32%
Closing stock 1,091.96 11,532.96 10,441.00 956.17%
TOTAL ASSETS 2,63,54,55,425.44 313,48,61,779.79 49,94,06,354.35 18.94%
Share capital 3,47,14,200.00 3,79,62,405.00 32,48,205.00 9.35%
Reserve fund 3,00,03,274.35 3,51,55,795.41 51,52,521.06 17.17%
Nominal members - - - -
Deposit 202,78,81,003.17 235,47,51,597.16 32,68,70,593.99 16.11%
Funds 2,71,09,272.23 3,44,34,448.23 73,25,176.00 27.02%
Other liabilities 3,28,408.00 4,56,967.00 1,28,559.00 39.14%
Provisions 26,64,97,111.96 32,89,20,924.96 6,24,23,813.00 23.42%
Branch Adjustments 20,18,17,932.30 26,70,59,123.52 6,52,41,191.22 32.32%
Dividend 20,56,033.22 24,87,044.62 4,31,011.4 20.96%
Depreciation fund 2,47,30,486.15 2,89,81,551.15 42,51,065.00 17.18%
Rewards 18,000.00 70,000.00 52,000.00 288.88%
Staff Fund - 1,150.00 - -
Safety deposit - 1,42,92,595.00 - -
Net profit 2,02,99,704.06 3,02,88,177.74 99,88,473.68 49.20%
TOTAL LIABILITIES 2,63,54,55,425.44 313,48,61,779.79 49,94,06,354.35 18.94%

29
Interpretations from Comparative Balance Sheet of Teachers Co-Operative
Society Ltd. between year 2016 and 2017:

1. The cash in hand has decreased by -27% from year 2016 to2017, which says that there is
less requirement for cash by the society
2. There has been a ₹1,46,15,584.62 increase in cash invested in other banks. This figure
shows that the society is making good amount of profit and investing it rightly
3. An increase of 36.97% in investment shows the bank is confident about investing its saving
and it has achieved the risk taking ability
4. The society has reduced the loans to staff and increase for the members in the year 2016-
17
5. The difference between closing stock (₹10,441) for 2 years shows the sales are ineffective
and more efforts is needed for clearing the stock by the end of the year
6. The deposits have increased by 16.11%. We can say that more funds are flowing into the
bank
7. Increase in dividend (20.96%) is a indication that the society is capable of providing returns
to its investors/members
8. The profit is increased by almost half than the year 2016. Teachers Cooperative Society is
successful one. It has enough profit to establish more and more of its branches in different
places in Udupi.

30
 Chapter 6

Learning Experience
Learnings from Teachers Co-Operative Society Ltd.

Teachers is a well developed cooperative society. It has achieved it feat by successfully

expanding its branches. Information on how does a banking business work was briefed at 4 out
of 8 branches of Teachers Co-Operative Society Ltd. The interaction of employee-customer
and interaction between employees themselves was wholesomely dissimilar than what was
expected. Communication between them became stronger when the 2 parties conversed in their
regional language. Teachers co-operative society ltd. has many customers who are senior
citizens, it also has its root deepened into villages. This group of customers can be said as
'Diverse' who are not very well versed about the banking practices. They prefer communicating
banking terms in words that they would comprehend.

The internship was helpful in learning the organization structure of the cooperative society
regarding:

• Who reports to whom?

• Who authorizes receipt and cheques?
• Who fills in the position of absentees?
On 4 weeks study diligent knowledge on how a loan is approved was made known. While
approving a loan many things are needed to be reviewed and cross checked. These conditions
differ from one person to other and from one type of loan to other.

Some other learning from the internship are:

1. Discipline
All the employees in Teachers co-operative society ltd. are extremely acquainted. They are
punctual to work and look presentable. They show no disinterest to the customers in anyways.
2. Mutual understanding
The employees in Teachers Co-Operative Society Ltd. work with mutual understanding and
good relation between themselves. This makes them more effective and efficient in their work
because everyone does their share of work which collectively improve the performance of the
society
3. Loan, Deposit, Lockers
Many types of loans and deposits were clued-up which has broadened the knowledge of
banking. Safe locker facilities are attractive and economical in Teachers Co-Operative Society

31
Ltd. For honoring the cheques, communicating them to head office and receiving an intimation
in return regarding the same is necessary.
4. Gold loan in Teachers Co-Operative Society Ltd.
Gold loan is very versatile because it can be obtained easily by pledging the gold ornaments
with the society. At Teachers Co-Operative Society Ltd. the gold loan can be approved faster
than the personal loans
• Gram of gold is valued 15% less than the market value
• After devaluing it the gold loan is lent at 75% of the gross value of devalued units
The value of gold is devalued by 15% to compensate any variations i.e. in case the borrower
fails to repay the loan on maturity. Approval of loan at 75% is made only to set aside the amount
to be paid as interest on the loan in case of any contingencies.
Gold loan is also a risky venture for cooperative societies.
5. Extra mural benefits
Employees in Teachers Co-Operative Society Ltd. enjoy varieties of benefits like Provident
funds, health insurances, ESI, GSLI, bonus, festival advances, leave encashment, annual study
tour and training camps.

32
 Bibliography

1. https://www.ift.edu.mo/EN/Introduction/Home/Index/228
2. https://en.wikipedia.org/wiki/Internship
3. https://en.wikipedia.org/wiki/Financial_statement
4. http://pib.nic.in/feature/fe0299/f1202992.html
5. http://www.yourarticlelibrary.com/india-2/history-of-co-operative-movement-in-india-
1047-words/4798/
6. http://www.karnatakaapex.com/new/index.php/en/about-us/history/evolution-of-co-
operatives-in-india
7. http://www.yourarticlelibrary.com/business/10-important-characteristics-of-a-co-operative-
organization/5202/
8. https://prokoop.wordpress.com/the-nature-and-characteristic-of-cooperatives/
9. https://www.mindtools.com/pages/article/newSTR_91.htm
10. http://articles.bplans.com/how-to-perform-swot-analysis/
11. http://teachersbank.in

33
 Annexure
Trading account of Teachers Co-Operative Society Ltd. for the year 2015-16 and 2016-17
Table 2.1
Particulars 2015-16(₹) 2016-17(₹)
To Opening stock 4,254.87 1,091.96
To Purchases 2,77,078.08 3,28,354.54
To Carriage expenses 10,053.50 10,327.00
To Gross profit (B/F) 41,029.51 48,468.96
Total 3,32,415.96 3,88,242.46
By Sales 3,17,857.50 3,65,419.50
By Sale of gunny bags 12,351.50 10,396.00
By Incidental charges 1,115.00 593.00
By Tax - 301.00
By Closing stock 1,091.96 11,532.96
Total 3,32,415.96 3,88,242.46
Profit and loss account of Teachers Co-Operative Society Ltd. for the year 2015-16 and
2016-17
Table 2.2
Particulars 2015-16(₹) 2016-17(₹)
To Administrative expenses 1,21,12,896.14 1,79,85,602.18
To Interest on deposit - -
To Interest expended 18,59,69,669.00 22,17,79,272.00
To Staff salary 1,69,18,650.00 1,82,62,045.00
To Miscellaneous expenses - -
To Depreciation 40,66,142.61 44,21,799.00
To Provisions 5,87,53,295.16 1,52,90,378.00
To Bad debt - 1,34,01,933.00
To Net profit 2,02,99,704.06 3,02,88,177.74
Total 29,81,20,356.97 32,14,29,206.92
By Trading profit 41,029.51 48,468.96
By Interest earned 29,45,01,328.67 31,69,30,167.91

34
By Rent - 10,01,625.00
By Other incomes 35,77,998.79 34,48,945.05
Total 29,81,20,356.97 32,14,29,206.92
Balance sheet of Teachers Co-Operative Society Ltd. as at 31-3-2015 to 31-3-2017
Table 2.3
Assets 31-3-2015(₹) 31-3-2017(₹)
Cash in hand 66,70,555.09 48,22,282.19
Cash at bank 10,61,56,437.65 12,07,72,022.27
Investments 47,76,26,571.83 65,42,08,237.74
Loans and Advances:
i. Members 1,80,37,64,186.73 203,67,79,146.00
ii. Staff loan 27,03,950.00 23,74,202.00
Fixed and Current assets 3,62,23,314.96 4,68,14,062.96
Other assets 4,91,384.92 20,21,170.15
Branch Adjustment 20,18,17,932.30 26,70,59,123.52
Closing stock 1,091.96 11,532.96
TOTAL ASSETS 2,63,54,55,425.44 313,48,61,779.79
Share capital 3,47,14,200.00 3,79,62,405.00
Reserve fund 3,00,03,274.35 3,51,55,795.41
Nominal members - -
Deposit 202,78,81,003.17 235,47,51,597.16
Funds 2,71,09,272.23 3,44,34,448.23
Other liabilities 3,28,408.00 4,56,967.00
Provisions 26,64,97,111.96 32,89,20,924.96
Branch Adjustments 20,18,17,932.30 26,70,59,123.52
Dividend 20,56,033.22 24,87,044.62
Depreciation fund 2,47,30,486.15 2,89,81,551.15
Rewards 18,000.00 70,000.00
Staff Fund - 1,150.00
Safety deposit - 1,42,92,595.00
Net profit 2,02,99,704.06 3,02,88,177.74
TOTAL LIABILITIES 2,63,54,55,425.44 313,48,61,779.79

35
36