INTERNSHIP REPORT

ON

A BRIEF ORGANIZATION STUDY AT PRIMARY

AGRICULTURAL CO-OPERATIVE SOCIETIES
GUTTIGAR
Submitted in partial fulfillment of requirement for the award of the degree
MASTER OF BUSINESS ADMINISTRATION
SUBMITTED BY

THEJASHWI
4KV22BA051

Under the guidance of

IMMACULATE MARY
ASSISTANT PROFESSOR

DEPARTMENT OF MBA
K. V. G. COLLEGE OF ENGINEERING, SULLIA, D.K – 574 327
2023-24
 PÉ.«.f. vÁAwæPÀ ªÀĺÁ«zÁå®AiÀÄ, ¸ÀļÀå zÀ.PÀ.-574327

K.V.G COLLEGE OF ENGINEERING, SULLIA, D.K-574 327

AFFILIATED TO VISVESVARAYA TECHNOLOGICAL UNIVERSITY, BELAGAVI

DEPARTMENT OF MBA

CERTIFICATE
It is certified that the internship entitled “A BRIEF ORGANIZATION
STUDY AT PRIMARY AGRICULTURE CO-OPERATIVE SOCIETY
GUTTIGAR.” carried out by Mr. THEJASHWI, USN 4KV22BA051, in partial
fulfillment of the award of MASTER OF BUSINESS ADMINISTRATION of the
Visvesvaraya Technological University, Belagavi during the year 2023-24. It is
certified that all corrections/suggestions indicated for Internal Assessment have been
incorporated in the Report deposited in the departmental library.
The internship report has been approved as it satisfies the academic
requirements in respect of the Internship prescribed for the said Degree.

Mrs. IMMACULATE MARY Dr. SURESHA V PROF. KRISHNANANDA A

ASSISTANT PROFESSOR Principal Head of the Department

Name of Examiners Signature with date

1.

2.
 KVG
COLLEGE OF ENGINEERING
Kurunjibagh, Sullia, Dakshina Kannada, Karnataka, India - 574327
Approved by AICTE New Delhi, Affiliated to VTU Belagavi

DEPARTMENT OF MBA

DECLARATION

I, THEJASHWI (4KV22BA051), hereby declare that the Internship work

entitled “A BRIEF ORGANIZATION STUDY AT PRIMARY AGRICULTURE
CO-OPERATIVE SOCIETY GUTTIGAR .” has been independently carried out by us
under the guidance of Mrs. IMMACULATE MARY, Assistant Professor, Department of
MBA, KVG College of Engineering, Sullia, in partial fulfillment of the requirements of the
degree in MASTER OF BUSINESS ADMINISTRATION of Visvesvaraya Technological
University, Belagavi. I further declare that I have not submitted this report either in part of in
full to any other university for the reward of any degree.

Place: SULLIA THEJASHWI

Date : 4KV22BA051
 ACKNOWLEDGEMENT

Without the direction and aid of numerous people, who in various ways
contributed and extended their valued assistance in the preparation and execution of
this organization research, this dissertation would not have been feasible.

I want to thank my internal guide, Mrs. IMMACUATE MARY, Assistant

Professor, Department of MBA, for giving me a clear direction from the beginning of
the projectuntil its conclusion.

I want to thank to my external guide Mr. SHARATH AK CEO/MANAGER

PRIMARY AGRICULTURE CO-OPERATIVE SOCIETY GUTTIGAR D.K
for the guidelines during my project.

I want to thank Prof. KRISHNANANDA A., HOD of MBA, for all of his
assistance in getting this thesis finished.

For his advice and assistance in carrying out this Organization study, I would
like to express my gratitude to Dr. SURESHA V, Principal, KVG College of
Engineering.

I want to thank Dr. RENUKAPRASAD K V, Managing Trustee, K.V.G

Charitable trust Sullia for being a reliable source of information.

I also want to express my gratitude to the KVG College of Engineering's entire

personnel, both teaching and non-teaching, for their unwavering concern and
assistance. Last but not least, I want to express my gratitude to everyone who has
supported me in this effort in some way, whether directly or indirectly.

THEJASHWI
 TABLE OF CONTENT

SL.NO. PARTICULARS PAGE NO.

Chapter1 Introduction about the organization & Industry profile. 2-4

Chapter 2 Organization profile 5-16

2.1 Back ground
2.2 Nature of the business
2.3 Vision, Mission, Quality policy
2.4 Work flow model
2.5 Product/service profile
2.6 Ownership pattern
2.7 Achievements/Awards
2.8 Future growth & prospect

Chapter 3 McKinsey’s 7S framework and porters five force model 17-26

Chapter 4 SWOT Analysis 27-28

Chapter 5 Analysis of financial statement 29-38

Chapter 6 Learning Experience 39-40

Chapter 7 Bibliography 40-42

 LIST OF TABLE
Table no. Title Page no.

1.00 Structure of co-operative institution in India 03

1. F.D interest rate 08

1.1 Specific limit of MKCC loan per acre land 10

1.3 No. of member increase in last 5 years 12

1.4 Workflow model 13

1.5 Management/ownership structure 14

2.0 Growth information 16

2.1 Organization structure 21&22

2.2 P&L A/C as on 31/3/21 30

2.3 Balance sheet as on 31/3/21 31

2.4 P&L A/C AS ON 31/3/22 32

2.5 Balance sheet as on 31/3/22 33

3.0 P&L A/C of 31/3/23 34

3.1 Balance sheet as on 31/3/23 35

3.2 Graph-purpose of loan 36

3.3 MTAP loan increase graph 37

3.4 LTAP LOAN increase table 38

3.5 STNAP loan graph 39

4.0 Jewelry loan graph 39

4.1 Growth info. Of 5years 40

4.2 RATIOS 41&42

 EXECUTIVE SUMMARY

Banking system occupies an important place in nation‟s economy. A banking institute

is indispensable in a modern society. It plays a pivotal role in the economic
development of a country.

The assessment of income and repayment also become essential as they are
considered as the eligible criteria for the subsequent loan assistance.

Different type of deposits is received from members and non-member. The deposits
include saving bank deposit, fixed deposit, daily deposit, other deposit. The rate of
interest is changing on extent deposit. Interest rate of fixed deposit above three years
is 9% and saving bank account 3.5%.

Primary agriculture credit co-operative society Guthigar is the village level bank
which is situated in SULLIA TALUK it is engaged in developing rural areas by
giving agriculture credit to the farmers. The study mainly focus on analysis of
financial statement of the society.

The Guthigar co-operative society issued various loans to its member. The bank give
in loans are short, long and medium term base. Gold loan also provided by the
society. The rate of interest of loan is depends on term and purpose.

1
 Chapter 1
Introduction about the organization and industry

1.1 Introduction about an organization and industry:-

The co-operative credit system, with two broad segments of urban and rural co-
operatives, forms an integral part of the Indian financial system. Rural credit
cooperatives in India were originally envisaged as a mechanism for pooling the
resources of people with small means and providing them with access to different
financial services. Democratic in features, the cooperative credit movement was also
an effective instrument for development of degraded waste lands, increasing
productivity, providing food security, generating employment opportunities in rural
areas and ensuring social and economic justice to the poor and vulnerable.

The history of the cooperative credit movement in India can be divided in four phases.
In the First Phase (1900-30), the Cooperative Societies Act was passed (1904) and
“cooperation” became a provincial subject by 1919. The major development during
the Second Phase (1930-50) was the pioneering role played by RBI in guiding and
supporting the cooperatives. However, even during this phase, signs of sickness in the
Indian rural cooperative movement were becoming evident.

In the Third Phase (1950-90), the All India Rural Credit Survey was set up which not
only recommended state partnership in terms of equity but also partnership in terms of
governance and management. NABARD was also created during this phase. The
Fourth Phase from 1990s onwards saw an increasing realization of the disruptive
effects of intrusive state patronage and politicisation of the cooperatives, especially
financial cooperatives, which resulted in poor governance and management and the
consequent impairment of their financial health.

Table 1.00 STRUCTURE OF CO-OPERATIVE CREDIT INSTITUTIONS IN INDIA:

2
 The co-operative credit structure in the country can be divided into two broad
segments: the urban co-operative banks and the rural co-operative credit institutions.
While the urban co-operative banking system has a single tier comprising the Primary
Co-operative Banks (commonly known as urban co-operative banks – UCBs). The
rural co-operative credit system is divided into long-term and short-term co-operative
credit institutions which have a multi-tier structure.

The short-term co-operative credit institutions have a three-tier structure comprising

State Co-operative Banks (StCBs), Central Co-operative Banks (CCBs), and
Primary Agricultural Credit Societies (PACSs) which are not banks but only
societies. The long-term co-operative credit institutions have generally a two tier
structure comprising the State Cooperative Agriculture and Rural Development Banks
(SCARDBs) and the Primary Co-operative Agriculture and Rural Development Banks
(PCARDBs). Long-term co-operative credit institutions have a unitary structure in
some States, while in other States they have a mixed structure.

1.2 Introduction of primary agricultural credit co operative

societies:-Primary Agricultural credit cooperative bank are the financial institution
provide grass root level arms of the short term co-operative credit structure. It directly
deals with the rural agricultural borrowers, give those loans and collect repayment of
loans given and also undertake distribution and marketing functions.

It aims at bringing greater transparency and accountability in their operations and

enabling them to diversify their business and undertake more activities. The Union

3
Budget 2023-24 has announced Rs. 2,516 crore for computerisation of 63,000
Primary Agricultural Credit Societies (PACS) over the next five years.

The Guthigar co-operative society issued various loans to its member. The bank give
in loans are short, long, and medium term base. Gold loan also provided by the
society. The rate of interest of loan is depends on term and purpose.

4
 CHAPTER-2

ORGANIZATION PROFILE

Introduction of PACS -:
Primary Agricultural credit cooperative bank are the financial institution provide grass
root level arms of the short term co-operative credit structure. It directly deals with
the rural agricultural borrowers, give those loans and collect repayment of loans given
and also undertake distribution and marketing functions.

It aims at bringing greater transparency and accountability in their operations and

enabling them to diversify their business and undertake more activities. The Union
Budget 2023-24 has announced RS. 2,516 Crore for computerisation of 63,000
Primary Agricultural Credit Societies (PACS) over the next five years.

The Guthigar co-operative society issued various loans to its member. The bank give
in loans are short, long, and medium term base. Gold loan also provided by the
society. The rate of interest of loan is depends on term and purpose.

2.1 Background of GUTHIGAR Primary Credit Co-Operative Society ltd

Co-operative society is the backbone of economic activities and social progress of the
society and the GUTHIGAR Primary Agriculture credit Co-operative society was
founded on 1923. It covers the GUTTIGARU, NALKUR and DEVACHALLA
village of SULLIA TALUK. Thus, the bank‟s working area will have a population of
approximately 1670 agriculture families and also approximately 960 Laborer families,
the operational area will be start just 6km from the famous SUBRAHMANYA
temple, 13km from the head office and the head office building will be located on the
SULLIA –SUBRAHMANYA main road. The head office have the own land of 2.06
acres area, own office building, 100mt capacity 4 warehouse. Besides, there is own
plot of 0.10 acres in TALOOR of DEVACHALLA village, there will be 100mt
capacity own building and one warehouse. A 0.10 acre site at NADUGALLU in
NALKOORU village will have a 100mt capacity warehouse and office building. And
also have the 0.10 acre land in Kandrappadi of DEVACHALLA village , there will be
also have the same 100mt capacity warehouse and office building. And also
GUTHIGAR PACS have 0.10 acre land in BALLAKA.

5
2.2 HISTORY OF THE GUTHIGAR PACS LTD:- GUTHIGAR CA Bank was
initially established in 1923 with 24 members and with a share capital of RS. 246
under the chairman ship of PULLADKA SUBRAYA under the guidance of
cooperation MAHAPITA MOLA HALLI SHIVARAYA. In 1935 the co-operative
society as started under the chairman ship of DERAPPAJJANA MANE VEERAPPA
GOWDA with the share capital of RS.291 by 23 members under the name of
„Amaranalkur Seva Sahakari‟ bank in NALKOOR village. In the year of 1959
GUTHIGAR CA Bank and AMARANALKUR CO-OPERATIVE Bank were merged
and renamed as a GUTHIGAR Co-Operative agriculture bank. The headquarters
located at GUTHIGAR.

In 1976, as per the order of the Karnataka government DEVACHALLA SC bank as

merged with GUTHIGAR CA Bank and started functioning under the name
“GUTHIGAR VYAVASAYA SEVA SAHAKAR SANGH”. Then SHRI B. MR.
VEERAPPA GOWDA elected as a president and S. RADHAKRISHNA as a
secretary. They have the 546 members had share capital of RS. 2.11 Lakhs.

At present the PACS has a 5924 „A‟ class member with a capital of RS.107450110
and also society has a deposit of RS.26.67crore and rs.72.90crore in outstanding loans
distributed to the farmers. And also registered more than 160 aid groups; gradually it
is progressed over the last several years and gained profit to remain in „A‟ class. In
2022-23 the society as made a profit of more than 1.5crore.And also more than
378crore was transacted in the last year. Also, the PACS will have a fully equipped
office building and 8 warehouse building as well as have a petrol pump and
supermarket at GUTHIGAR.

2.3 VISION, MISSION AND QUALITY POLICY:-

2.3.1 Vision:-

“To cover all agriculture member of Primary agriculture co-operative society under
cooperative KISAN credit card scheme to achieve 100% coverage and also to provide
timely and adequate credit support both short term and long term investments”.

2.3.2 Mission:-Always be highly identified and visible brand, recognized for its
customer services.

6
  To deliver strong operational and financial performance.
 Be the most favored place to work where employee feels.
 Respected and motivated for their services.

2.3.3 Quality policy:-

The Guthigar co-operative society ltd, are decided to the people by rendering all
innovative bank product and services and bank shares all our gains to the people.

1. Providing security on savings.

2. Identify the various needs of the customer, the bank offer a range of
innovative products to meet their needs
3. To provide product and services appealing to customer.
4. Providing quality product and services to customer.

2.4 Product and services:-

The success of society is depends on the number of product they

can offer their customer and to suit their requirement at competitive prices and
services they provided to the customer product and giving best services in the
company will play the important part in profitable business.

Different kinds of deposits are received from its member and non-member and the
deposits include saving deposits, fixed and day deposit and other deposit. The rate of
interest is difference on the period of deposit. The rate of fixed deposit above three
years is 8.5% saving bank interest is 3%

The Guthigar co-operative society provides various loans to the member of the society
and the loan is various on short term, medium term and long term, basis and gold loan
also provide by the society, the rate of interest of loan is according their terms and the
present rate is 12%.

2.4.1 THE MAIN COMPONENT OF PRODUCT AND SERVICE OF

GUTHIGAR CO-OPERATIVE SOCIETY IS;-

 Accepting the deposits

 Lending the funds
 Super market

7
  Petrol pump

2.4.1.1 VARIOUS DEPOSITS IN PACS LTD:-

The PACS may receive deposits on or after the member and non-member at any time
and the return given for their deposits.

 Accepting of deposits;

The society accepts the deposits from both member and non-
member public. It maintains following type of account

1. Savings account
2. Fixed deposits
3. Daily deposits
4. Monthly deposit

1. Saving account;-

Saving accounts opened medium and low income groups. The

GUTHIGAR Co-Operative Society is providing 3% interest rate on yearly basis for
saving account.

2. Fixed deposit:-
Another one of the important type of the deposit this kind of
account opened by the small investors and fixed amount are deposited by
customer for a period and a fixed rate of interest and the minimum amount that
should be deposited in fixed amount is rs.10000.
Table 1:-
Duration For the resident(%p. a) For the senior resident(%p. a)
3months 5% 5%
6 months 5.5% 5.5%
1 year 7.75% 8.25%
2year and above 8.25% 8.75%

3. DAY DEPOSIT ACCOUNT :

8
 The kind of deposits, bank collect and accept a smallest amount
of money and the loan facility also given on this basis. Every bank give minimum rate
of interest for the day deposit schemes and the GUTHIGAR co-operative society give
4% on day deposit scheme.

4. Monthly deposit:-The kind of deposits, bank collect and accept the money in the
monthly basis. The GUTHIGAR PACS give 9% rate of interest on monthly
deposit.

 LENDING THE FUNDS/LOANS:-

The Guthigar Co-Operative society provides different loans and advance like:-

 STNAP/LTNAP loan
 Gold loan
 Agriculture loan
 Vehicle loan
 Housing loan

GOLD LOAN: - The GUTHIGAR co-operative society provides various loans to the
member of the society. The gold loan also provides by the society, the rate of interest
of loan is according their terms and the present rate is 12%.

In the 2022-23 the GUTHIGAR PACS as provided the RS.35,74,600 gold loan to his
customers.

Vehicle loan:-This is one of the common type of loan given to person who want to
purchase vehicle for their use as well as for keeping for hire. The GUTHIGAR co-
operative society give loan to vehicle on 75% of valuation vehicle. The rules of
GUTHIGAR co-operative society for this loan is customer pay the remaining 25% of
amount to bank and after that bank transfer full loan amount to show room.

The present rate of vehicle loan is 11% for new bike and 12%for old bikes. In 2022-
23 they provide rs.10, 55,000 vehicle loans to the customers.

Housing loan: - The GUTHIGAR PACS provide housing loan to his members. Who
as not capable to bear the total amount required to building a house. The PACS as

9
provided RS.10163000crore to housing loan to his member/customer. The present rate
of interest is 12%.

Agriculture loan: It is a one of the type loan provided by the society to his members.
The government provided MANGALA KISAN credit crop loan (MKCC) to members
for 0% interest. And also they have to provide medium term agriculture loan (MTAP)
and long term agriculture loan (LTAP) with the interest of 3%. Here the loan required
member should provide and follow certain procedure of receiving the loan. The
member must provide his RTC land record and also provide 2 persons as surety for
receiving the loan (surety person for loan must be the member). They as distributed
RS.365020000 to his members.

The society having the limit to provide this loan. At present, under the guidance of
DK district central co-operative Bank. Sometimes the government as provide
subsidies for those members who have the KCC loan.

Table1.1 government specified limitations for K.C.C loan, per acres of land

SI NO. CROPS LIMITATION PER ACRES OF LAND

1 ARECANUT 125000

2 Coconut 1100 (per tree)

3 Cashew 40000

4 Pepper 300 (per creeper)

5 Rubber 60000

6 Co-co 400(per tree)

STNAP/LTNAP LOAN:-It is a one of the type loan provided by the society to his
members. The society have provided loan to the customer for non-agriculture purpose
and household purpose etc. The present rate of interest for STNAP is 14% and
LTNAP is 12%. The GUTHIGAR PACS has distributed STNAP RS.305238300 and
LTNAP RS.3750000.

 Super market:-The GUTHIGAR Co-Operative society as give service to the

customer. They as started super market for the purpose of providing all good
quality products in one place. It as to help to 4 village persons. The super market
10
 as earn profit of RS.1087626 in 2022-23 year. The super market as available in
morning 8am to night 8pm.
 Petrol pump:-The society as started BHARTH petroleum petrol pump for the
purpose of providing good quality of petrol, diesel and oil to the local village
people. The petrol-pump as helped to neighbor village people and daily travellers
to SUBRAHMANYA temple and other place.
The petrol-pump as earned a profit of RS.957527 in 2022-23 financial year.

2.4.2 OTHER SERVICES OF GUTHIHAR PACS:-

The GUTHIGAR society has given following services to his members.
A. YASAHASWINI scheme:-
The yashaswini scheme is a health scheme is offered to the members
of the society. Any person can use the benefits of this scheme. The person can
apply for this scheme in this organization. The each family of 4 members must
pay rs.500, for extra he pays 100 per person while applying the scheme. Thus, the
receipt of payment and a card will be provided to the person while he facing any
health issues/ hospitalization.

B. Death fund:-
Here the death fund is benefit scheme of member‟s family. This
amount will be providing after the death of the member of the society. Rs.5000
will be provided to the member‟s family. This benefit scheme is not applied to
those who not having the membership of the society.

C. Government subsidies.
Sometimes the government will be provided or sanction some amount
of subsidies to farmers. The subsidies will be sanctions from the government
especially for farmers those who having the KCC loan and also self –help group
loans. The society will be provided those subsidies on the behalf of the
government.
D. Safe locker facility:-GUTHIGAR PRIMARY AGRICULTURE CO-
OPERATIVE SOCIETY is having the safe locker facility. The member can use
this safe locker facility for their value able gold items. The amount of rent is

11
 rs.600 per year will be applied for keeping their value able gold items for a
period of time. The safe locker facility also available at other branches also.

Areas of operation:-The activities of the GUTHIGAR PACS shall be extended in

4 villages like GUTHIGAR, NALKOORU, DEVACHALLA and KANDRAPADI.

COMPETITOR INFORMATION:-every organization is competing with number of

competitors in the same industry. GUTHIGAR PACS competitors are as follows

o CANARA BANK GUTHIGAR

o Local finance ltd
o SBI
o VENKATRAMANA Co-Operative society

SHOWING NUMBER OF MEMBER OF P.A.C.S LTD OF LAST FIVE YEARS

Table 1.3

8000

7000

6000
5000
4000
3000
2000
1000
0
2018-19
2019-20
2020-21
2021-22
2022-23

As shown in the on top of graph of membership of the GUTHIGAR co-operative

society has been decreased from 7197-5659 in the year of 2018-2021. And again it‟s
increased from 5659 to 5924 in the year of 2021-2023.

2.6 Work flow model:-

Table 1.4 Showing work flow model of deposit-

12
 CUSTOMER

DEPOSIT

APPLICATION REVIEW

DECISION MAKING

ACCEPT REJECT

PROCESSING CASH/CHEQUE

ACCOUNT SERVING

CUSTOMER SATISFACTTTION

LOAN AND ADVANCES WORK FLOW

INTERVIEW WITH MANAGER

KNOW YOUR CUSTOMER

EVALUATION OF PROJECT

DOCUMENTATION

REPAYMENT

SANCTION OF LOAN

 The shareholders create a share account and take the associate membership
from bank.

13
  Submits the loan application to bank with required documents and certified as
securities
 Documents and certificates are verified by field officer and then sent to
manager for further verification
 After manager verification, it will pass on to head office
 In head office it is verified by legal advisor and loan section head, then send to
managing board of director for final approval.
 If loan is approved by managing director, the loan approval will be sent to
loan department of the office.
 Loan is sanction to shareholders, only to a limit of approval amount
 Bank takes a certificate for loan utilization.
 Shareholders repay the loan and get a clearance certificate from the bank.

2.6 MANAGEMENT/OWNERSHIP:-The management of GUTHIGAR CO-

OPERATIVE SOCIETY as mentioned below

Table 1.5

PRESIDENT VENKAT DAMBEKODI

VICE PRESIDENT KISHOR KUMAR AMBEKALLU

DIRECTOR BELYAPPA GOWDA BK

DIRECTOR A V THIRTHARAMA

DIRECTOR KESHAV BHAT MULIYA

DIRECTOR MANJULA MUTHLAJE

DIRECTOR RAVI PRAKASH BALLADKA

DIRECTOR KRISHNAYYA MOOLETHOTA

DIRECTOR JAYAPRAKASH MOGRA

DIRECTOR NAVEEN BALUGODU

DIRECTOR CHANDRAVATHI MUNDODI

14
 DIRECTOR KUNJI BALLAKA

DIRECTOR ANANDA HALASINADKA

DCC SUPERVISOR MANOJ KUMAR

CEO SHARATH A K

BRANCHES;-

GUTHIGAR Co-operative society has four branches it is in

NADUGALLU, KANDRAPADI, TALOOR AND BALLAKA branches

2.8 FUTURE GROWTH AND PROSPECTS:-

Currently, there are many challenges before Indian bank such as improving capital
adequacy requirement ,managing non-performing assets enhancing branch sales and
services ,improving organization design ,using innovative technology through new
channels and working on loan operation .Apart from this frequently changes in policy
rate to maintain economic stability ,various regulatory requirement etc. Is additional
key concerns .despite these concerns, we expect that the Indian banking industry will
grow through loans and bonds looking at the huge growth potential of Indian
economy.

The organization looking for more support from the members of the organization in
order to develop the business transaction. The president had expressed their opinion
that, member‟s communication and business transaction should go hand in hand and
this has been improved as per the statistics. Thus the organization is looking for 100%
of member‟s participation in the business transaction.

The organization also wants to increase the membership of the farmers because the
government also facilitated free membership for farmers. The people can use the
opportunity to become the member of the society and also use the benefits from
his/her membership.

15
Table 2.O :-Growth information of 2020 to 2023

Particular 2018-19 2019-20 2020-21 2021-22 2022-23

Members 7197 7475 5659 5742 5924

Shares 80425760.00 86669010 97493710 10316220 107450110

fund

Reserve 4,40,64,967 5,05,19,477.43 5,72,85,809 6,39,89,237 7,10,50,528

fund

Deposits 17,52,88,225.81 19,76,20,612.52 26,72,82,232 30,87,10,213 33,80,37,763

Debit 44,00,56,175.00 46,19,87,073 49,60,33,075 50,93,24,024 52,21,98,588

balance
Debit for 60,07,37,120.00 64,78,95,539 72,90,25,275 75,67,00,628 77,57,65,502
outside

Loan 96.61% 96.4% 97.35% 97.39% 97.70

recovery
%

Profit 1,0159122.25 1,03,84,794.85 1,18,17,641 1,42,13,093 1,52,08,158

As shown above top photo of growth of the GUTHIGAR Co-Operative society has
been increased fast from 2013-2023. The profit of the society as increased to
15208158.63 in 2022-23. The membership is in 2019-20 is 7475. But it is decreased
to 5659 in 2020-21 for the various reasons and again it is increased to 5924 in 2022-
23. The loan also hugely distributed to the farmers. The society as distributed total
loan is 760181505 at 2022-23, in this they as given agriculture loan (MKCC) is
346080000 and other loan is 385761505. The totally 10 years the GUTHIGAR PACS
as hugely increased in their profit, loan distribution, deposits and assets etc

16
 CHAPTER -3
MCKENY’S 7S FRAMEWORK AND PORTER’S FIVE FORECE MODEL

3.1 MCKENSY‟S 7S FRAME WORK OF PACS:-

MCKENSY‟S 7s work provides a useful framework for analyzing the strategic

attributes of an organization. The model start on the premises that each organization is
not just a structure as it consist seven important elements. Strategy, structure and
system can be considered as hardware of the success. While, staff, skill, and shared
values are considered as the software.

17
 SOFT S:-

The four Ss across the button of the model are less tangible, more culture in
nature and were termed as soft SS by MCKENSY‟S.

Style

Skill

Staff and Shared values

HARD S; The three S across the top of the model are described as hard Ss

Structure

System

Strategy

3.1.1 Style:-leadership style of co-operative bank manager is democratic. Democratic

leadership also knows as participate leadership. Is a type of leadership style in
which members of the take more participative role in the decision-making process.
Everyone is given the opportunity to participate, idea are exchanged freely and
discussion is encouraged. While the democratic process tends to focus on group
equality and the free flow of ideas, the lead of the group is still there to offer
guidance and control.

The democratic leader is changed with deciding who is in the group and who get
contribute to the decision that made.

Characteristics of democratic leadership

 Group members are encouraged to share ideas and opinion even through the
leader retails the final says over decisions.
 Member of the group feel more engaged in the process.
 Creativity is encouraged and rewarded.
 Researcher suggest that good democratic leader possesses specific traits that
include:-
 Honesty

18
  Intelligent
 Courage
 Creativity
 Fairness
 Healthy mind

Benefits of democratic leadership:-

The main benefit is as follows;-

 Democratic leadership can lead to better ideas and more creative solution to the
problem.
 Group member are also feel more involved and committed to project.
 It leads to higher productivity among group member.
3.1.2 SKILL: banking sector has seen an exponential boom in the recent time this
is boom has also triggered the need of skilled and qualified human capital in
the banking setor, which is clearly indicated by the increasing opportunities in
private bank job public sector bank has been a preferred choice among the
youth of this country.

Training and development programs:-

Employees of the bank will undergo regular training and development programs
based on the requirement of the employees. Employee are informed about the training
and development programs if there are any and they can undergo this training or
development programs if they feel its required.

There are different training and development programs provided by the bank and RBI
concept such as core banking, CKYC (centralized know your customer) CBS (core
banking solution) personality development, banking abilities etc in place like
BANGLORE PUNE, Calicut on sight training is also given by the manager for his
subordinates.

3.1.3 SYSTEM:- services provided by the co-operation bank are consumer

banking, saving, securities asset management, wealth management.

19
3.1.3.1 RECRUITMENT PROCEDURE SYSTEM IN GUTHIGAR PRIMARY
AGRICULTURE CREDIT CO-OPERATIVE SOCIETY:-
The candidate will be selected on the basis of the written examination followed by the
interview. GUTHIGAR PACS is the head office and they have the 4 branches in
SULIA. Any vacancies in the bank will be published in two newspaper that is one
local newspaper and district newspaper. It provides recruitment to the candidates for
various posts as per the eligibility criteria.

APPLICATION PROCESS:- Eligible candidate need to fill the application form as

per the scheduled dates only.

Candidates must ensure that the application form should be filled completely and
correctly. Candidates will have to fill the details in the application form such as name,
date of birth, category, exam center, uploading photo and signature and lastly, have to
pay the application fees.

Declaration of result:-
The result for the SCDCC bank recruitment will be uploaded on the
website SCDCC.in. Candidates check their obtained scores in the examination from
the result which will be declared as per the scheduled dates only. The results will
decide the candidates who will qualify the examination for the recruitment of the
concerned post.

PROMOTION AND PERFORMANCE APPRAISAL:- employees of the

GUTHIGAR Primary Agriculture Credit Co-Operative society are encouraged to
work efficiently and effectively through promotion and performance appraisal. The
following qualities are considered while promoting the employee.

 Performance
 Achievement
 Seniority
 Punctuality
 Attendance

20
3.1.4 SHARED VALUES: The company as shared their values with the all members.
In agricultural societies, certain shared values tend to emerge due to the close
relationship between people and the land.

GOALS:-
o The bank has plans to implement IMPS.
o It is now providing services of NEFFT and RTGS
o The bank will implement ATM IN COMING months or IN FUTURE
o TO provides services such ADHAR based payment UPIC, BHIMATIC

3.1.5 STRUCTURE:-
The bank as a two tier organizational set up consisting of branches and
head office. The decision-making progress is based on the delegated power of
each unit. The Board of Directors of the bank of its committee is empowered to
formulate policies regarding the declaration of power to various functional heads.
The Board of Director in turn are guided by the policies of government of INDIA
and reserve bank of INDIA formulating policies for implementation by the bank

The Board of Director are elected by shareholder and professional directors and
functional director are appointed by the board of director at present.

Table 2.1:- CHART SHOWING ORGANISATION STRUCTURE:

PRESIDENT

VICE- PRESIDENT

BOARD OF DIRECTORS

CEO

BRANCH MANAGER
21
 ACCOUNTANT

SENIOR ASSISTANT

JUNIOR ASSISTANT

ATTENDERS

3.1.6 -STAFF: there is a total 30 employees out of which 1CEO, 1 Vice CEO, 1
accountant, 6 clerk employees 4 attenders 16 temporary employees.
3.1.7 Strategy: This refers to the plan of action to achieve organizational goals. It
includes the organization's mission, vision, goals, and objectives.

Vision:-

“To cover all agriculture member of Primary agriculture co-operative society under
cooperative KISAN credit card scheme to achieve 100% coverage and also to provide
timely and adequate credit support both short term and long term investments”.

Mission:-Always be highly identified and visible brand, recognized for its customer
services.

 To deliver strong operational and financial performance.

 Be the most favored place to work where employee feels.
 Respected and motivated for their services.

Quality policy:-

22
The Guthigar co-operative society ltd, are decided to the people by rendering all
innovative bank product and services and bank shares all our gains to the people.

 Providing security on savings.

 Identify the various needs of the customer, the bank offer a range of innovative
products to meet their needs
 To provide product and services appealing to customer.
 Providing quality product and services to customer.

3.2 -Porters five force model:- porters five force framework is a tool for
analyzing competition of business. It draws from industrial organization economics to
drive five force determine the competitive intensity and, therefore, the attractiveness
of an industry in terms of its profitability. An “unattractive” industry is one which the
effect of these five force reduced overall profitability. The most unattractive industry
would be one approaching “pure competition” in which available profits for all firms
are driven to normal profit level. Porter refer to this force as the microenvironment,
to contrast it with the more general term microenvironment. They consist of those
forces close to a company that effect its ability to serve its customer and make a
profit. The overall industry attractiveness does not imply that every firming the
industry will return the same profitability .firm are able to apply their core
competencies ,business model or network to achieve a profit above the industry
average . A clear example of this is the airlines tend to compete on cost, and that
drives down the profitability of individual carriers as well as the industry itself
because it simplifies the decision by a customer to buy or not buy a ticket.
Understanding porters five forces is a business analysis model that helps to explain
why different industries are able to sustain different level of profitability. The model
was published in Michel, E porter‟s book, competitive strategy technique for
analyzing industries and competitors in 1980. The model is widely used to analyze the
industry structure of company as well as its co-operative strategy. Porters identified
five undeniable forces that play a part in shaping every market and industry in the
world. The forces are frequently used to measure competition intensity, attractiveness
and profitability of an industry and market. These forces are:

1. Competitive Rivalry in the industry.

23
 2. Potential of new entrants the industry.

3. Bargaining power of suppliers.

4. Bargaining power of customer.

5. Threat of substitute products.

Porters five force model

The porters five forces that determine the industry in banking –

3.2.1 THREAT OF NEW ENTARNTS :

So many new banks entering the market each year the threat of new entrants should
be extremely high. the biggest barrier of entry for the banking industry trust because
the industry deals with the other people, money and financial information new banks
find it difficult to start up .due to the nature of the industry people are moved willing
to place their trust in big name, well known, major banks who they consider to be
trustworthy.

The banking industry has undergone a consideration in which major banks seek to
serve all of customer financial needs under their roof. This consolidation furthers the
role of trust as a barrier to entry for new banks looking to compete with major banks,
as consumer are more likely to allow one bank to hold all their accounts and services
their financial needs. Ultimate the barrier to entry are relatively low for the banking
industry .while it is nearly impossible for new banks to enter the industry offering the

24
trust and full range of services as a major bank ,it is fairly easy to open up a
GUTHIGAR primary agricultural credit co-operative bank operating on the regional
level.

3.2.2 BARGAINING POWER OF SUPPLIERS :

Capital is the primary resources on any bank and there are four major suppliers of
capital in the industry.

1. Customer deposits

2. Mortgages and loans

3. Mortgages -backed securities

4. Loans from other financial institution

By utilizing these four major suppliers, the bank can be sure that they gave the
necessary resources required to services their customer borrowing needs while
maintain enough capital to meet withdrawal expectation. The power of the suppliers is
largely based on the market, their power is often considered to fluctuate between
medium and high.

3.2.3 BARGAINING POWER OF BUYERS :

The individual doesn‟t pose much of a threat to the banking industry, but one
major factor affecting the power of buyers is relatively high switching costs. If a
person has one Bank that services their banking needs, mortgage, saving, checking
etc. it can be a huge hassle for that person to switch to another bank.

To try and convince customer to switch to their bank they will often times lower the
price of switching ,though most people still prefer to stick with their current bank .The
interest has greatly increased the ease and reduced the cost for consumer to compare
the price of opening account as well as the rates offered at various banks .ING
directed introduced high yield saving account to catch the buyers attention ,then they
went a step further and made it very easy for customer to transfer their money from
their current bank to ING. ING was successful in their attempt because they managed
to make switching cost very low in terms of time and capital.

25
3.2.4 THREAT OF SUBSTITUTES PRODUCT:

GUTHIGAR PRIMARY AGRICULTURAL CREDIT CO-OPERATIVE BANK is

largest of substitution are not from rival banks but non-financial competitors.

The bank does not suffer any real threat of substitutes as for as deposit or
withdrawals. However insurance, mutual funds and fixed income securities are some
of the many banking services that are also offered by non-banking companies .there is
also the threat payment method substitutes and loans are relatively high for the bank.
For example, Big name electronics jewelers, car dealers and more tend to offer
preferred financing on big ticket items. Often time these non-banking companies offer
a lower interest rate on payment then the consumer would otherwise get from a
traditional bank loan.

3.2.5 RIVALRY AMONG EXISTING COMPETITORS :

The banking industry is considered highly competitive. The financial services

industry has been around for hundreds of years and just about everyone who needs
banking services already has them .because of this banks must attempt to lure clients
away from competitor banks. They do this offering lower financing, higher rates,
investment services and greater convenience than their rivals .The banking
competition is often a race to determine which bank can offer both the best and fastest
services, but has caused banks to experience a lower return on asset .given the nature
of the industry it is more likely to see further consolidation in the banking industry.
GUTHIGAR PRIMARY CREDIT CO-OPERATIVE BANKS tend to acquire or
merge with other bank. The financial services industry has been around for hundreds
of years and just about everyone who needs banking services already has them
.because of this banks must attempt to lure clients away from competitor banks.

26
 CHAPTER 4

SWOT ANALYSIS

SWO analysis is one of the important parts of the study of organization. This is a
technique to analyze their business strength, weakness, opportunities and threats to
accomplish their business objectives and it is also helpful to solve the problems in
business. This analysis helps the society in realizing their strength and building upon
them in order to overcome its weakness so that it can take advantages 0f opportunities
to manage the threats. Thus, the SWOT analysis of GUTHIGAR Primary Agriculture
Credit Co-Operative Society as follows.

Strength Weakness
Opportunity Threats
4.1 Strength:-The strength of the GUTHIGAR PACS as follow

 Well established and strong ruling board helps to moving in a progressive

path.

27
  Trust within the members and loyal membership.
 Bank provides good service to consumer and it has good experienced man
power
 Relaxation from the government income tax and TDS.
 Affordable and favorable interest rates to the members.
 Organization located in convenient place with 4 branches in three villages.
 Hardworking employees.
 Strong transparent and informed leadership of president.
 Ready market for product and services offered by society.

4.2 Weakness:-

 lack of right education and training for members

 The bank are operate in limited area
 Lack of on time supply of agricultural implements and equipment.
 Lack of core banking facility and lack of marketing strategy.
 Lack of implementation of latest technology like ATMs and e-banking
facility.
 Network problem in rural branch

4.3 Opportunity:-

 The co-operative society can add more number new baking product and
services to serve the farmers and open up membership
 Opportunity to provide better market to agriculture product
 Expansion in supply of agriculture equipment and implements to farmers.
 Introduction of new loan products to customers
 Organization can introduce the advanced technology.
4.4 Threats:-
• Lack of on time distribution of govt. interest subsidies.
 High fluctuation in economic conditions of the country.
 Competition from other regional banks
 Changes in government legal policies and natural calamities

28
 Chapter 5
Financial statement analysis

Financial analysis of GUTHIGAR Co-Operative society as follows

PROFIT AND LOSS ACCOUNT:

The account through which annual net profit or

loss of a business is ascertained is called profit and loss account.

Gross profit or loss of a business is ascertained through trading account and net profit
is determined by deducting all indirect expenses (business operating expenses) from
the gross profit through profit and loss account. The profit and loss account starts with
the result provided by trading account.

The particular required for the preparation of the profit and loss account are available
from the trial balance. Only indirect expenses and indirect expenses and revenue are
considered in it. This account starts from the result of trading account (gross profit or
loss ) Gross profit is show on the credit side of profit and loss account and gross loss
is show on the debit side of this account. All indirect expenses are transferred on the
debit side of this account and all indirect revenues on the credit side. if the total of the
credit side exceeds the debit side, the result is “net profit and if the total of the debit
side exceeds the total of the credit side the credit side, the result is net loss. As the
net profit or net loss of an certain accounting period is determined through profit and
loss account.

29
BALANCE SHEET:

A balance sheet is a financial statement that summarizes

company asset. Liabilities and shareholder equity at a specific point in time. These
three balance sheet segment give investor to the idea as to what the company owns
and owes, as well as the amount invested by shareholders.

The balance sheet include to the following formula:

ASSETS =LIABILITIES +SHAREHOLDERS EQUITY

Balance sheet is more like a snapshot of the financial position of a company at a

specified time, usually calculated after quarter, six month or one year. Balance sheet
has two heads main heads -assets and liabilities.

ASSETS:

Within the assets segment, accounts are listed from top to bottom of their
liquidity, which is the ease with which they can be converted into cash. They are
dividends into current assets, those which can be converted to cash in one year or less:
and non-current or long term assets, which cannot easily converted into cash.

Liabilities: Liabilities are the money that a company owes to outside parties, from
bills it has to pay to suppliers to interest on bonds it has issued to creditors to rent
utilities and salaries. Current liabilities are those that are due within one year and are
listed in order of their due date. Long – term liabilities are due at any point after one
year.

Shareholder equity:

Shareholder equity is the money attributable to a business owner meaning its

shareholder. It is also known as net assets “silent it is equivalent to the total assets of a
company minus its liabilities that is the debt it owes to non-shareholder.

30
 GUTHIGAR PRIMARY AGRICULTURAL CREDIT C0-OPERATIVE SOCIETY LTD

NO. D.R.G/S/2622/1976-77, H.OGUTHIGAR, SULLIA TQ. PH 08257-200125

PROFIT AND LOSS ACCOUNT AS ON: 31-03-2021.
Table 2.2

PARTICULAR AMOUNT PARTICULAR AMOUNT

Interest paid 1,92,63,500.00 Business profit 32,90,863.40

 Payable on deposit
Interest on DCC bank loan 1,82,36,455.00 Interest on 1,25,26,696.00
 Interest paid to investment:-
loan (Dividends on equity)
Staff salary 62,99,349.00 Income on interest 4,97,92,626.00

Other expenses 29,51,445.00 Other income 54,50,198.63

Goods and service tax paid- 94,194.08

20,66,202.78
less -GST collection:-1972008.7
Provisions (non-performing 1,02,68,209.00
loans etc.)

Depreciation account 20,04,590.00

Audit fees 1,25,000

Net profit
1,18,17,641.36

Total 7,10,60,384.03 Total 7,10,60,384.03

31
 GUTHIGAR PRIMARY AGRICULTURAL CREDIT C0-OPERATIVE SOCIETY LTD.

NO. D.R.G/S/2622/1976-77, H.OGUTHIGAR, SULLIA TQ. PH 08257-200125

BALANCE SHEET AS ON: 31-03-2021.
Table 2.3

Liability Amount Asset Amount

Share capital 9,74,93,710.00 Cash in hand 9,58,032.00

Reserve fund 2,29,36,168.53 Cash at bank 3,97,04,439.34

other fund 2,16,82,685.63 R.F INVEST at 1,84,60,987.37

SCDCC BANK

Depreciation fund 1,26,66,954.70 OTHER 13,66,34,850.70

INVESTMENT

S.C.D.C.C 49,60,33,075.00 Share in other firms 2,51,91,600.00

BANK loan

Members deposit 26,67,19,829.22 Member loans 72,70,47,029.00

Staff deposit 5,625,000.00 Staff loan 19,78,246.00

Govt. special 4,50,000.00 Adjustment 5,56,52,966.20

subsidies and account(receivables)
donations

Audit fees 2,00,000.00 Closing stock 53,97,316.04

Adjustment 12,42,383.10 Current asset 46,88,283.96

account (payable)

Provision govt. 10,22,83,696.66 Fixed assets 1,83,74,893.59

int. subsidy
provisioned

Profit for 2020-21 1,1817,641.36

Total liability 1,03,40,88,644.20 Total asset 1,03,40,88,644.20

32
 GUTHIGAR PRIMARY AGRICULTURAL CREDIT C0-OPERATIVE SOCIETY LTD.

NO. D.R.G/S/2622/1976-77, H.O GUTHIGAR, SULLIA TQ. PH 08257-200125

PROFIT AND LOSS ACCOUNT AS ON: 31-03-2022.
Table 2.4

PARTICULAR AMOUNT PARTICULAR AMOUNT

Interest paid 2,02,31,074.00 Business profit 38,80,151.95

 Payable on deposit
Interest on DCC bank loan 1,55,22,598.00 Interest on 1,53,59,025.00
 Interest paid to loan investment:-
(Dividends on equity)
Staff salary 84,70,969.50 Income on interest 4,07,33,776.00

Other expenses 36,38,319.45 Other income 53,23,142.20

Goods and service tax paid- 2,39,975.00 Provisions 42,16,554.00

non-performing loan
26,80,649.20
91,78,062.00
less -GST collection:-2440674.2 Less- audit report;
49,61,508.00
Provisions (employee holiday 50,00,000.00
pay & staff assistance)

Depreciation account 20,61,620.00

Audit fees 1,35,000.00

Net profit 1,42,13,093.20

Total 6,95,12,649.15 Total 6,95,12,649.15

33
 GUTHIGAR PRIMARY AGRICULTURAL CREDIT C0-OPERATIVE SOCIETY LTD.

NO. D.R.G/S/2622/1976-77, H.OGUTHIGAR, SULLIA TQ. PH 08257-200125

BALANCE SHEET AS ON: 31-03-2022.
Table 2.5

Liability Amount Asset Amount

Share capital 10,31,62,210.00 Cash in hand 9,84,774.00

Reserve fund 2,59,20,019.10 Cash at bank 4,45,97,633.63

other fund 2,33,40,643.20 R.F INVEST at 2,14,44,838.37

SCDCC BANK

Depreciation fund 33,78,436.18 OTHER 16,77,40,707.70

INVESTMENT

S.C.D.C.C 50,93,24,024.00 Share in other firms 2,61,91,600.00

BANK loan

Members deposit 30,81,47,713.32 Member loans 75,67,00,628.00

Staff deposit 5,62,500.00 Staff loan 22,79,370.00

Govt. special 4,50,000.00 Adjustment 4,86,90,963.90

subsidies and account(receivables)
donations

Audit fees 2,00,000.00 Closing stock 65,21,619.71

Adjustment 33,78,436.18 Current asset 48,19,926.96

account (payable)

Provision govt. 9,49,19,742.16 Fixed assets 1,83,74,893.59

int. subsidy (building, petrol
provisioned pump)

Profit for 2020-21 1,42,13,093.20

Total liability 1,09,83,46,955.86 Total asset 1,09,83,46,955.86

34
 GUTHIGAR PRIMARY AGRICULTURAL CREDIT C0-OPERATIVE SOCIETY LTD

NO. D.R.G/S/2622/1976-77, H.OGUTHIGAR, SULLIA TQ. PH 08257-200125

PROFIT AND LOSS ACCOUNT AS ON: 31-03-2023.
Table 3.0

PARTICULAR AMOUNT PARTICULAR AMOUNT

Interest paid 1,92,56,747.00 Business profit 28,34,131.78

 Payable on deposit
Interest on DCC bank loan 1,73,91,387.00 Interest on 1,78,98,976.00
 Interest paid to loan investment:-
(Dividends on equity)
Staff salary 87,11,988.58 Income on interest 4,19,32,600.00

Other expenses 50,88,575.55 Other income 58,60,639.00

Goods and service tax paid- Provisions 9,24,203.00

non-performing loan
49,61,508.00
Less- audit report;
40,37,305.00
Provisions (employee holiday 20,00,000.00 Good and services tax 7,62,656.98
pay & staff assistance) collection:-
25,73,077.20
Less-Paid-
18,10,420.22
Depreciation account 24,21,350.00

Audit fees 1,35,000.00

Net profit 1,52,08,158.63

Total 7,02,13,206.76 Total 7,02,13,206.76

35
GUTHIGAR PRIMARY AGRICULTURAL CREDIT C0-OPERATIVE SOCIETY LTD

NO. D.R.G/S/2622/1976-77, H.OGUTHIGAR, SULLIA TQ. PH 08257-200125

BALANCE SHEET AS ON: 31-03-2023.

Table 3.1

Liability Amount Asset Amount

Share capital 10,74,50,110.00 Cash in hand 9,70,333.00

Reserve fund 2,95,56,476.78 Cash at bank 3,46,82,213.66

other fund 2,43,44,127.32 R.F INVEST at 2,50,81,296.05

SCDCC BANK

Depreciation fund 1,71,49,924.70 OTHER 20,43,31,397.70

INVESTMENT

S.C.D.C.C 52,21,98,588.00 Share in other firms 2,62,01,600.00

BANK loan

Members deposit 33,75,04,263.00 Member loans 77,39,55,211

Staff deposit 5,33,500.00 Staff loan 18,10,291.00

Govt. special 4,50,000.00 Adjustment 4,88,46,558.98

subsidies and account(receivables)
donations

Audit fees 2,00,000 Closing stock 74,11,443.05

Adjustment 99,41,826.40 Current asset 76,59,081.96

account (payable)

Provision govt. 8,47,87,345.16 Fixed assets 1,83,74,893.59

int. subsidy (building, petrol
provisioned pump)

Profit for 2020-21 1,52,08,158.63

Total liability 1,14,93,24,319.99 Total asset 1,14,93,24,319.99

36
RATIOS ANALYSIS:- company‟s financial information contained in
Balance Sheet and Profit and Loss account. The figures in these statements are
absolute and sometimes unconnected with one another. The absolute figure does not
convey much meaning however, it is only in the light of other information that the
significance of a figure is realized.

Ratio enables the mass of the data to the data to be summarized and simplified. Ratio
analysis is an instrument which diagnoses the financial status of an enterprise ratio. In
fact, are full of meaning and communicate the relative importance of the various items
appearing in the balance sheet and profit and loss account.

1. Current Ratio:- Current Liability measures the firm‟s ability to pay its
current responsibilities and supply the finances required to do so is measured
by current liability.

Current Ratio = Current Assets / Current Liability

YEAR CURRENT ASSET CURRENT LIABILITY RATIOS

2020-21 46,88,283.96 37,08,95,908.76 0.0126 OR 1.126
2021-22 48,19,926.96 40,70,95,891.34 0.0118 OR1.18
2022-23 76,59,081.96 43,28,83,434.56 0.0176 OR 1.17
Overall, while the company's liquidity position seems stable over the years, it's
essential to monitor these ratios continuously to ensure the company can meet its
short-term obligations effectively.

2. Cash ratio: The cash ratio measures for comparing a company‟s cash
equivalent to its current liabilities such as short-term debt. The working capital
and payment capabilities of a certain company are assessed.

Cash ratio = cash / current liabilities

Year Cash Current liability Ratio

2020-21 4,06,62,471.34 37,08,95,908.76 0.109 or 10.96
2021-22 4,55,82,407.63 40,70,95,891.34 0.111 or 11.19
2022-23 3,56,52,546.66 43,28,83,434.56 0.823 8.23

37
Overall, while the company maintained a healthy cash position in the earlier years, the
notable decline in the cash ratio in 2022-23 warrants closer attention to ensure the
company's liquidity remains adequate for its operations.

Net profit ratio:- This measures compares a company‟s net profit its earnings
after deductions to its net sales. Every company attempt and fundamental
principle is to increase net profits while maintaining or increasing profit
margins.
Net profit ratio = Net Profit after tax / Net Sales*100

year Net profit Net sales Ratio

2020-21 1,18,17,641.36 7,10,60,383.4 0.1663 or16.63%
2021-22 1,42,13,093.20 6,95,12,648.95 0.2044 or 20.44%
2022-23 1,52,08,158.63 7,02,13,206.76 0.21659 or 21.65%

The trend shows a positive trajectory in profitability over the three years, with the net
profit ratio consistently increasing. This suggests that the company has been able to
effectively manage its expenses, optimize its operations, or increase its revenue
streams, leading to higher profitability.

38
 CHAPTER -6

LEARNING EXPERIENCE

LEARNING OUT COME:-

The internship chance that I avail with GUTHIGAR PACS was a great opportunity
for learning and professional development. The main idea behind choosing
GUTHIGAR PACS was to learn and gain proficiency in rural finance. During my
internship program, I get familiar with the work environment, culture, ethics and
staffs of GUTHIGAR PACS LTD. It enhanced my skill knowledge and ability to
work in a team. The internship gave me the opportunity to learn valuable information
and acquire knowledge and skills that are required to perform task and duties in the
organization. Hence I understood the working flow and activity of the PACS.

Without a sound and effective banking system in INDIA it is cannot have

a healthy economy. The banking system of INDIA should not only be hassle free but
it should be able to meet new challenge posed by the technology and any other
external and internal factors. Various banks like public sector bank, financial
institution etc. are making sincere efforts to meet the expectation of the customer by
providing better product and services.

In the present era many banks make their best effort to attract number of customer
towards them, which resulted in aggressive competition in banking industry. So
GUTHIGAR primary agriculture co-operative society must cope up with the latest
technology so as to provide better services for the customer. They must make an
effort to study well the mindset of the customer and provide new product and
services to his customers. As all the banks are trying to attract more industry to
borrow loan from the bank, it is necessary for GUTHIGAR primary agriculture
credit co-operative bank to improve the quality of services provided by the adoption
of new technology like NEFT, RTGS, etc. in all their respective branches.

Suggestions and recommendation:-During my internship I found

some of the faults and some bank operation. Here are some of the suggestions which
I recommend to the bank.

39
  The advertising of bank and banks product is not so much good and exposed
to people. So, bank should hire some of the skilled marketers who can design
creative and attractive advertisement and advertising by using all possible
media to make every person aware of the bank updates about old and new
product and services.
 Bank is somewhat is slow in launching new products. So bank should review
its policies of launching new products in short reasonable time.
 Salary less than other banks.
 Incentives and award system should be introduced for the employees for their
motivation.
 The society has to attract to the customer by offering different interest rates to
different deposits this is helps to increase the deposits in the future.
 Society should conduct the certain seminar for the public to build the
awareness.
 In order to liquidity position of the force of society and society should
encourage the small term loan.
 The society should develop the customer services.
 The society must plan for expansion of branches.
 In arrange to create the activities of the society more productive activities also
undertaken through available working capital of the society.

Bibliography:-
REFERENCE:-

 Mr. SHARATH AK- regarding the GUTHIGAR primary agriculture

credit co-operative society organization information and background.
CEO/MANAGER, GUTHIGAR PACS
 Mr. JAYAPRAKASH - regarding the organization profile working
flow, interest rate and other information
Accountant, GUTHIGAR PACS
 Annual report of 2020-21of GUTHIGAR PACS.
 Annual report of 2021-22 of GUTHIGAR PACS.

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  Annual report of 2022-23 of GUTHIGAR PACS.

Website:-
 https://www.kbmanage.com/concept/swot-analysiss
 https://www.investopedia.com/terms/p/porter.asp
 https://www.cooperation.gov.in/about-primary-agriculture-cooperative-
credit-societies-pacs
 https://www.mindtools.com/at7k8my/porter-s-five-forces
 https://en.wikipedia.org/wiki/Primary_Agricultural_Credit_Society
 https://corporatefinanceinstitute.com/resources/management/mckinsey-
7s-model/
 https://www.linkedin.com/pulse/mckinsey-7s-model-measure-how-
well-your-organisation-positioned-

Conclusion:-

During the study it has been observed that the GUTHIGAR PACS is an
upcoming unit with all promises to prosperous in future. The dynamic and efficient
management of the bank is sure to take this bank to pinnacle success in the coming
future, Also it is very near to the objective of helping the farmers. Through the effort
of management and staff, bank can attain the goal. The bank can retain the sales and
profitability in the high if the go in same direction.

GUTHIGAR Primary Agriculture Co-Operative Society ltd. has a large portfolio with
huge assets to meet up its liability and the management of this bank is equipped with
the expert banker and mangers in all of level of management. A banker cannot sleep
well with bad debt in this portfolio. The failure of banks occurs mainly due to bad
loans and advances. Besides this a good customer services and general banking
activities attract the customers. So GUTHIGAR primary agriculture co-operative
society is focusing more on ensuring good quality banking services to attract more
and more customer.

At the conclusion, I just want to mention without the practical knowledge it is quite
difficult to understand and work in business environment. This internship has
smoothed the way to look into the future and step out in the real world to achieve the
personal goals and objectives.

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In this project as helped to understand activity of the organization and also it help to
familiarize with the organization structure and it‟s functioning. The study as to help to
understand how the key business processes are carried out in an organization and how
information used in organization for decision making at various levels. The
organization is always focusing on the quality of product and services.

This internship has smoothed the way to look into the future and step out in the real
world to achieve the personal goals and objectives.

Thank you.

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