CHAPTER- 1

INTRODUCTION

INTRODUCTION ABOUT PROJECT

The study conducted on “Non-Performing Assets” with special reference to “Sneha Souharda
Pattina Sahakari Niyamita Co-operative Society in Tumkur.

Project work is an essential component of the VTU MBA academic curriculum. It is a good
platform for exploring our knowledge and understands the various skills required to enter a
specific area of operation. It helped in understanding the theoretical knowledge and apply it
in real time. It also provides an understanding of professional cultures, allows for the analysis
of work place settings, and provides platforms for comparing different working styles.

“Non-Performing Assets” the topic deals with the loans in the books of accounts of a
particular bank which is in default, or in arrears on schedule payment of principal as well as
interest.

INDUSTRY PROFILE

INTRODUCTION ABOUT INDIAN BANK INDUSTRY

Reserve Bank of India (RBI) specifies that banking system of India is effectively promoted
and regulated systematically. The banking business and financial conditions in the nation are
far better when compare any other nation on the planet. Market and liquidity hazard considers
recommend that Indian banking practices are universally versatile and have withstood the
worldwide downturn well.

Banking practices in India has recently witnessed the turnout of modern and innovative
models of banking such as payments and small business banks. The new measures of central
bank may go far in helping for transformation of the local financial industry.

Evolution of Bank:

The Three banks were merged they are Bank of Madras (1843) Bank of Bengal (1809), Bank
of Bombay (1840) and turned into an Imperial Bank of India. After India got freedom
Imperial bank of India was nationalized under demonstration of SBI in 1955 known as SBI.
During the time of after freedom nationalization was the significant topic because of
communist way of thinking which is received by Prime Minister Jawaharlal Nehru.

In the previously mentioned nationalization process was preceded under India's Prime
Minister Indira Gandhi in 1969. Banks are particular in numerous viewpoints; past to 1991 all
the banks were state possessed. At the point when government starts private banks in banking
in 1991 the open area banks were dropped to 20%.However,state claimed banks despite
everything powers over 80% of the nation banking resource.

The administration of India has a customary act of utilizing state possessed banks to protect
falling flat of organizations or put away cash to supported ventures which has small taking
care of the advance. A McKinney and Company is Consultant Company examined the
effectiveness of the banks in India and their result of examination tells that Indian banks are
only one-tenth of the U.S bank's profitability.

STRUCTURE OF INDIAN BANKING SYSTEM

The development of financial system was coming into the financial requirements, and also
facilities the trade, and industry for the satisfaction of the country.

It mainly classified are as follows:

1. Scheduled Bank:
The schedule bank is one which is registered in the second of the reserve bank of
India. It is away under the domain of the different credit control measures of the RBI.
They are required to keep up a specific minimum balance in their records with the
RBI.The scheduled banks are qualified borrowings and re-discounting offices from
the reserve bank of India.

Schedule bank classified in to two types:

1. Schedule co-operative bank:

Co-operative banks came in to existence with the development of the co-operative
credit societies act of 1904 which accommodated the arrangement of co-operative
credit societies.
FURTHER IT DIVIDED IN TO 2 TYPES CO-OPERATIVE BANKS:
a. State co-operative: This bank is a federation of central co-operative bank and acts
watch of the co-operative banking structure in the state. The state co-operative banks
lend money to central cooperative bank and primary societies and not directly to the
agriculturists.
b. Urban co-operative bank:
The urban co-operative bank thought not formally defined refers to co-operative
banks located in urban and semi urban region. Urban co-operative banks are permitted
to lend money only for non-agricultural purposes.

2. Scheduled commercial banks:

These banks are those included in the second scheduled of RBI act 1934. The banker
in one who in the conventional course off his business and get cash which he repays
by of peoples from whom or on whose account he receives it.
a. Public sector banks:
It is a bank in which the government has a major holding it is divided in to 2 types
1) State bank of India
2) Nationalized bank
b. Private sector banks:
It is a bank in which larger part of state or hold by private individual people.
c. Regional rural banks:
This Banks are conceived has institution that combines the local feel and familiarity
with rural problems.
d. Foreign banks:
This banks are foreign in origin and which have their head work places a situated
outside in India. This Banks are also called as exchange banks.

2. Non-Scheduled Bank:
The banks which are excluded in the second schedule of the RBL non-scheduled
banks are not qualified for every one of those offices that the scheduled banks benefit
of from the RBI the banking regulation act 1949 non-scheduled banks have likewise
gone under the RBI control
 INDIAN BANKING STRUCTURE

Reserve bank of India

Scheduled banks Non-scheduled banks

Co-operative Banks Commercial Banks

State co- Urban co- Public Private Regional Foreign

operative operative Sector sector Rural Banks
Bank Bank Banks Banks Banks

State Bank Nationalized Other

of India Banks Public

COMPANY PROFILE
The Tumkur Sneha Souharda Pattina Sahakari Niyamita Co-operative Society was
incorporated in the year 2000. The range of workplace of the association is limited to the
areas of Tumkur city and the Department of Development Authority,

The Assosiation operates under the law of “Karnataka Co-operative Societies Act,1959” and
“Karnataka Co-operative Societies Rules, 1960”.

The Sneha Souharda Pattina Sahakari Niyamita Co-operative Society carries their activity in
various fields for the purpose of attaining the Social and Economic welfare of a large section
of people belonging to the middle class and the rural class by encouraging thrift, self help and
mutual aid among them, especially by eliminating the middlemen and also it helps to fulfill
the financial needs of small and middle income group people.
THE IMPORTANT OBJECTIVES OF THE BANK:

1. Encouraging the sentiments of the association, the co-workers and the nominal
members.
2. To improve the economically background and weaker sections of the economically
background and weaker sections of society, unemployed to become Independent
preparing plans and helping financing.
3. Providing loans to members to buy motor vehicles or buy machinery and other
machines as described in the Motor Vehicles Act based.
4. Establishment of funds to encourage co-operative education.
5. Making economic and technological adjustments to the unemployed with their own
business/ employment opportunities.
6. Providing technical assistance to entrepreneurs and self-employed businesses in the
home industries.

THE MAIN SOURCES OF FUNDS:

1. Current Account Deposit

2. Savings Account Deposit
3. Term Deposit
4. Recovering Deposit
5. Futures Fund Deposit
6. Cash letters
7. Regular Fund Deposit
PROMOTERS OF SNEHA SOUHARDA PATTINA SAHAKARI
NIYAMITA CO-OPERATIVE SOCIETY

Sl.no NAME DESIGNATION

1 Sri. K .Ramaanjana Reddy B.com President

2 Sri. B.G.KrishnayyaM.A Vice President

3 Sri. K.A. Shivakumar Directors

4 Sri. T. SampathkumarB.A.L.L.B Directors

5 Sri. Lakshminarayan Reddy B.A.L.L.B Directors

6 Sri. T.M. Prakash Directors

7 Srimati. G.C. Padma Directors

8 Sri. GopeshkumarB.E,M.B.A Directors

9 Sri. Kodhandapaani Directors

10 Srimati. K. Yashodha Directors

11 Srimati. Vasantha Directors

12 Sri. Rajanna Directors

13 Sri. N.P. Anandkumar Directors

VISION AND MISSION STATEMENT

Vision of the Bank:

1. Create and maintain a Socially and Economically sustainable co-operative system.

 2. Investing additional resources of the association in promissory notes, in debt, in
shares, and a government guaranteed co-operative loan papers and other organizations
under Article 58 of the Co-operative Societies Act.

Mission of the Bank:

1. Opening the branches, sub-branches, payment office or any name, and forming rules
for conducting their businesses in the workplace of the association, obtaining the prior
approval of the co-operatives.
2. In order to provide loans and advance, the District Co-ordinated Co-operative Bank or
with the Priority of the Regulators with the Commerce Bank or other assistance
organizations and accepting deposites from members.

Quality Policy:

Encouraging members to establish trade and home industry, promoting these objectives and
promoting the development of the association and providing financial assistance from the
Karnataka Minority, Scheduled Castes Welfare Corporation and Backward Welfare
Corporation.

PRODUCTS/ SERVICES PROFILE AREAS OF OPERATION

SERVICE PROFILE:

Loans and Advances:

The loan is when you barrow funds or cash from your friend, bank or from any other
financial institutions with an agreement that the amount will return in upcoming years along
with prescribed interest rate. Principal means total amount which the barrower gets and
interest is the money which charged for getting the loan.

There are two types of loans. They are:

1. Secured loan means mortgaging an asset (such as car, house or any immovable
property) as security for the loan.
 2. Unsecured loan is a loan that doesn’t require any type of collateral, here lenders
approve unsecured loans based on borrower’s creditworthiness.

INFORMATION OF DIFFERENTLOANS AND ADVANCES

Sl.no Loan Details Rate of Interest

(%)
1. Housing Loan 14%
2. Vehicle Loan 16%
3. Gold and Silver Loan 12%
4. Property Loan 14%
5. Machinery Loan 16%
6. Joint Loan (2 members)
1. Installment 17%
2. Pigmi 19%
7. Deposit Loan
1. 91 days - 180 days 6%
2. 181 days – 1 year 7%
3. 1 year – 2 years 8%
4. 2 years – 3 years 9%
5. 3 years and above 10%

The Area of operation in Sneha Souharda Pattina Sahakari Niyamita Co-operative

Society:

The range of workplace of the association is limited to the areas of Tumkur city and the
Department of Development Authority. It is having only branch in Tumkur situated at ‘Sri
Lakshmi Building, infront of DDPI office, SS puram, Tumkur’. It works under guidance of
President Sri.K.Ramanjana Reddy.

It operates under the law of “Karnataka Co-operative Societies Act,1959” and “Karnataka
Co-operative Societies Rules, 1960”. With the motive of Creating and maintaining a Socially
and Economically sustainable co-operative system.
INFRASTRUCTURE FACILITIES

1. Well designed office space

2. Computerized process
3. Drinking water and washroom facilities
4. Parking facilities
5. Well equipped cabin

COMPETITOR’S INFORMATION

1. Sri Siddarameshwara Co-operative Bank

2. Bhairaveshwara bank, Tumkur
3. TGMC Bank, Tumkur
4. ShardhaMahila Bank limited, Tumkur
5. Mahatma Gandhi society bank limited, Tumkur
6. veerashaiva co-operative limitted
7. Sri Siddaganga Urban co-oprative bank limited, Tumkur
8. Vyshya co-operative bank limited, Tumkur
9. Vishwakarma co-operative bank limited, Tumkur

SWOT ANALYSIS

SWOT Analysis is a framework for identifying and analyzing the particular business
Organization’s Strengths, Weaknesses, Opportunities and Threats.Strengths are the internal.
Positive Characteristics that the company processes.One look at these competitive
advantages. Weaknesses are internal as well and are the negative aspects of the company and
indicate competitive vulnerabilities. These should be distinguished from problems such that
immediate collapse is not likely. Weakness should be overcome in order to achieve future
growth and improvement of the company. Threats are external to the company and action is
required.
STRENGTHS:

1. Effective customer relationship.

2. The bank is following goal oriented approach.
3. Well experienced planning team.
4. Most dedicated and efficient staff members.

WEAKNESSES:

1. The bank is not providing debit and credit cards and ATM facilities to its customers
this leads to dissatisfaction to the customers.
2. The bank does not able to compete with other nationalized banks due to its outdated
service facilities.
3. The area of operation is limited.

OPPORTUNITIES:

1. Government support
2. Building the customers relationship with the help of new services and schemes.

THREATS:

1. Lack of modernization.
2. Good quality services in other nationalized banks like ATM, E-Banking etc
3. Huge competition.

FUTURE GROWTH AND PROSPECTS

1. Planning for establishment of funds to encourage co-operative education.

2. To carry out all kinds of tasks that are necessary to grow and strengthen the
association’s business.
FINANCIAL STATEMENTS:

BALANCE SHEET OF SNEHA SOUHARDA PATTINA SAHAKARI

NIYAMITA CO-OPERTIVE SOCIETY from 31-03-2019 to 31-03-2021

PARTICULAR MAR 21 MAR 20 MAR 19

EQUITY AND LIABILITIES
INDEPENDENT SHARE CAPITAL 50,00,000.00 50,00,000.00 50,00,000.00
Membership Share Capital 13,00,500.00 13,17,500.00 13,46,000.00
TREASURES
Building Fund 2,23,187.00 2,23,187.00 2,22,687.00
Reserve Fund 6,03,322.38 5,94,747.38 5,82,307.38
Operating Reserve Fund 4,75,834.00 4,68,974.00 4,59,024.00
General Fund 1,13,942.00 1,12,227.00 1,09,739.00
Deficiency Fund 1,70,676.00 1,70,676.00 1,70,676.00
Erosion Fund 97,305.00 97,305.00 97,305.00
DEPOSITS OF MEMBERS
Fixed Deposit 88,96,395.00 88,97,825.00 77,50,805.00
Pygmy Deposit 16,83,210.00 16,46,010.00 21,47,030.00
Savings Account 1,46,973.00 2,43,812.00 1,26,223.00
Cumulative Deposit 1,91,990.00 3,23,750.00 3,60,840.00
STAFF DEPOSITS
Staff Security Deposit 30,000.00 30,000.00 30,000.00
Pygmy Agent Deposit 95,000.00 95,000.00 ----
OTHER LIABILITIES
Audit fee reserved 15,000.00 13,748.00 13,674.00
A share divident of members 14,034.00 ---- 3,837.00
NET GAIN --- 34,313.00 49,767.00
TOTAL LIABILITIES 1,40,57,368.38 1,42,75,555.38 1,34,69,914.38
ASSETS
CURRENT ASSETS
Cash Balance 2,670.80 276.00 32.00
DCC Bank – Savings Account 83,965.00 1,53,744.00 2,67,861.00
TVC Bank- Savings Account 16,691.00 9,246.00 20,161.00
IDBI Bank- Savings Account 60,013.00 7,62,742.00 6,88,773.00
State Bank of Mysore 4,722.00 4,722.00 4,722.00
INVESTMENTS
DCC Bank Share 10,030.00 10,030.00 10,039.00
KSCCS Association 10,000.00 10,000.00 10,000.00
DCC Bank Deposit 26,00,000.00 26,00,000.00 24,00,000.00
TVC Bank 3,30,822.00 3,30,822.00 3,30,822.00
SharadaMahila Bank 1,00,000.00 1,00,000.00 1,00,000.00
Staffing Fund 31,000.00 31,000.00 19,000.00
MEMBER’S LOANS
Joint Debt 49,80,465.00 48,03,085.00 51,17,670.00
Steady Debt 9,90,000.00 10,90,000.00 9,15,225.00
Staff Debt 24,84,000.00 25,50,000.00 20,70,000.00
Fixed Deposit Loan 5,08,380.00 7,69,730.00 4,53,720.00
Machinery Debt 9,15,570.00 9,17,180.00 9,18,800.00
ADVANCES
Building Advance 15,000.00 15,000.08 15,000.00
Telephone Deposit 2,000.00 2,000.00 2,000.00
OTHERS
Share Divident 1,725.00 1,725.00 1,725.00
OTHER ASSETS
Printing and Article Inventory 51,226.00 41,910.00 52,000.00
Pitoes 72,342.58 72,342.58 72,342.58
NET LOSS 7,86,746.00 ----
TOTAL ASSETS 1,40,57,368.38 1,42,75,555.38 1,34,69,914.38
STATEMENT OF PROFIT & LOSS OF SNEHA SOUHARDA PATTINA
SAHAKARI NIYAMITA CO-OPERATIVE SOCIETY from 31-03-2019 to
31-03-2021

PARTICULAR MAR 21 MAR 20 MAR 19

INCOME
OTHER INCOMES
Entry Fee --- 10.00 50.00
Share Fee 315.00 125.00 1,360.00
Notice Fee --- 400.00 ---
Interest from loans 11,15,280.00 15,03,370.00 15,61,110.00
Service Charge 29,580.00 36,205.00 44,655.00
Savings Account Interest --- 50,404.00 ---
Interest from Investments 2,53,492.00 2,53,398.00 2,86,793.00
Pygmy Commission 8,910.00 17,095.00 19,080.00
TOTAL INCOME 14,07,577.00 18,61,007.00 19,13,048.00
EXPENSES
GOVERNANCE COSTS
Electricity Fee 1,299.00 1,248.00 1,158.00
Annual general meeting cost 9,600.00 44,320.00 43,250.00
Souharda Fee 9,440.00 8,000.00 8000.00
Insurance Cost 7,083.00 6,962.00 6,909.00
Office Rent 36,0000.00 36,000.00 36,000.00
Pygmy commission 2,20,575.00 2,80,985.00 2,93,755.00
Staffing Fund 12,000.00 ----- 12,000.00
Employees Salary 5,62,500.00 5,35,000.00 5,04,000.00
Stationary Cost 24,210.00 20,175.00 19,762.00
Stamp and Postal Cost 1,495.00 700.00 2,969.00
Telephone Cost 4,482.00 4,255.00 3,730.00
Gathering Cost 1,550.00 1,150.00 1,200.00
Other cost 45,032.00 43,205.00 39,990.00
Payment of fixed deposit interest 11,99,798.00 8,19,130.00 8,24,909.00
Advertising 4,000.00 1,800.00 1,200.00
Kodagu relief fund --- --- 5,000.00
Staffing gratuity --- --- 31,525.00
Election 15,000.00 --- ---
Income Tax 16,750.00 --- ---
CHANCES
Printing 8,509.00 10,090.00 14,250.00
Audit fee reserved 15,000.00 13,674.00 13,674.00
TOTAL EXPENSES 21,94,323.00 18,26,694.00 18,63,281.00
GROSS PROFIT or LOSS (7,86,746.00) 34,313.00 49,767.00
Less: Tax --- --- ---
NET PROFIT or LOSS FOR THE (7,86,746.00) 34,313.00 49,767.00
PERIOD
 CHAPTER- 2

CONCEPTUAL BACKGROUND AND LITERATURE REVIEW

Theoretical background of the study

Introduction to NPA:

There has been a buzz in financial system related to significant increase in non-performing
assets which is big matter of concern for banking business and for economy. Indian central
bank is enormously regulating the banks to reduce their NPAs in different categories. Non-
performing assets are just like a virus for entire banking business which affects the
profitability, decline quality of assets and performance of banks.

Meaning of NPA:

Non-performing assets are the loans or advances, where interest or installment of the
principal amount will remain unpaid for a time period of more than 90 days. In other words,
non-performing asset means a loan in the books of accounts of a particular bank which is in
default, or in arrears on schedule payment of principal as well as interest.

Concept of NPA:

The important factor that determines the performance of the banks is NPAs. Banks and other
monetary institutions are now required to identify such loans from time to time and then
categorize the assets.

Non-performing assets are a element of the banking system through the world. It is not
strange to public sector banks and any other financial institutions in India. Occurrence of
NPA is higher in public sector banks in comparison with private sector banks and also with
foreign banks in India.

Classification of assets to make provisions:

The intention of making provisions for a bad & doubtful loans and advances, banks need to
classify them into the following broad categories.
Non-Performing assets:

Any loan the repayment, of which is overdue beyond 90 days, or two quarters is considered
as NPA. It is also further classified into:

1. Standard assets
2. Sub-standard assets
3. Doubtful assets
4. Loss assets

1. Standard Assets:

Standard assets are the performing assets, which continue to generate income to the bank.
Repayments are received as and when these assets fall due. It also involves, loans and
advances where default of repayment does not exceed for one quarter.

2. Sub-standard Assets:

Sub-standard assets are those, which includes loans and advances and which are known as
non-performing assets. In other words, an asset does generate any income to bank for a
period of 18 months as per RBI guidelines is also called as sub Standard assets.

3. Doubtful Assets:

Doubtful assets are the assets, which has remained NPA for a period of exceeding 12 months.
Doubtful assets shall be bifurcated into doubtful assets less than one year between the 1 and 3
years, above 3 years, doubtful assets and above 3 years shall be further bifurcated in to
“existing stock”. Further each doubtful asset shall be bifurcated in to secured portion and
unsecured portion for provisioning purpose.

4. Loss Assets:

A loss asset is one where the loss has been acknowledged by bank through the domestic or
external auditors or by central bank regulation. The sum total amount has not been written off
wholly or partly.
REVIEW OF LITERATURES

1. Dr. C. Gowthaman(2020):

Dr. C. Gowthaman, in his paper entitled A STUDY ON NPA AT NAMAKKAL URBAN

COOPERATIVE BANK; his paper mainly concentrates on understanding the concepts and
causes of NPA, with the help of hypothesis test. According to the researcher there is a forever
affect of NPA on profitability of the bank and he suggested that the timely recovery of loans
from customers and proper management will help to reduce the NPA level. The study results
show that there is negative effect of NPA on financial position of the bank.

2. Dr. K. VijayaVenkateswari and Ms. S.Vidhya (2018):

Dr. K. VijayaVenkateswari and Ms. S.Vidhya In their paper titled “A Study of Non-
Performing Assets at Udhagamandalam Co-operative Urban Bank Ltd” they focused on
selecting the techniques and methods which helps to reduce the NPA level in the bank
through ratio analysis. According to researcher the banker should very careful while selecting
their customers and they should analyze the creditworthiness of the individual. The final
outcome of the study is that the bank is creating adequate provisions against their gross NPA
which is a very satisfactory position.

3. Nivedita (2018):

Ms. Nivedita, her paper titled “The study on NPA of state corporate banks in India” mainly
aimed to study the region wise NPA level at every state co-operative bank in our nation with
the help of comparative analysis. In her study she found that there is decrease tendency in
NPA except few states and the NPA is harmful for short term and long term profitability of
the bank. Finally she suggests that pre sanctioning of loan is turning point and proper
barrower appraisal is a proactive approach to reduce NPA. And also post-disbursement check
is also required to reduce NPA.

4. Dr. Subhas Chandra Sarkar, and Dr. Dilip Kumar Karak (2018):

Dr. Subhas Chandra Sarkar, and Dr. Dilip Kumar Karak, their research paper titled as “A
study on MANAGEMENT OF NPA OF DCC BANK” with the aim of disclose the trend,
reasons and impact of NPAs in rural credit structure. The tool used by them for examination
is trend analysis as well as hypothesis test. This study reveals, there is increase in trend values
of NPA year on year. It is observed from the study is that the overall management of NPA is
not satisfactory due to improper management and decrease in the rate of recovery. According
to the researcher proper management can helps to reduce the NPA level.

5. Vimal Kumar Joshi and Dr. C.S. Joshi (2018):

Vimal Kumar Joshi1 and Dr. C.S. Joshi their paper titled as “A Study on non performing
assets with special reference to Pithograph DCC Bank Ltd. (Uttarakand)” with the main
intension to study the grounds for advances becoming NPAs and to furnish suitable
recommendations to overcome the problem by the help of ratio analysis. In this study we can
find that NPAs has been increasing continuously and lack of securitization at the time of
granting loan was seen in the bank. Due to increase in NPA, it is reducing the earning
capacity of the bank and strongly affects the ROI so it is suggest that the timely recovery of
the loans can helps to reduce NPA.

6. Dr. S.Shivakumar (2018):

Dr. S.Shivakumar in his paper titled "A Study on Non-performing assets management with
special reference to Coimbatore City Co-operative Bank Limited, Tamilnadu" he emphasized
on to evaluate the features of NPA and affect on the economic condition of the organization.
The main tool used in his study was Mean, Standard deviation, Co-efficient of variation and
Trend analysis. In his research article he concluded about the study that NPAs will have an
effect on the profitability of the bank and leads to hazard the bank, shareholders as well.
Finally he suggested that to improve the recovery framework of NPA in initial stage itself
The bank has to take some necessary precautions.

7. P. Selvaraju (2018):

P.Selvaraju in his research article titled "An Empirical Study on Non-performing Assets of
Urban Co-operative Banks in Coimbatore of Tamil Nadu" he aims to bring out the real status
of NPA in Urban Co-operative banks. The tool used by him to make examination was ratio
analysis. He concluded his study by saying that the NPAs will trim down the profitability of
the banks, decline their financial health and destroy the solvency of banks. According to him
the banks are to be awakened to frame the new strategies or methods or workforce to reduce
their increased level of NPAs towards the banking sustainability.
 8. Mr. Seenu M (2017):

Mr. Seenu M in his paper titled “A Study on Management of NPAs in co-operative banks
specifically in kerala” he emphasized on to evalnuate the present scenario of NPAs in co
operative banks and also recovery prospectus in general. The main tool used in his research
was descriptive and analytical tool. The final outcome from this research was proper
supervision of NPA is not followed it would trouble the performance of the bank and the
NPAs may tear down the current profit as well as revenue due to enormous provisions of the
NPAs. According to him there is direct link between non-performing Assets and profitability,
if the bank can able to reduce the NPA then bank can able to improve profitability.

9. Mr.Vijay Kumar and Dr. ShilpaRana(2017):

Mr. Vijay kumar and Dr. ShilpaRana in their research article titled “A Study on non-
performing assets with special reference to Kangra Central Cooperative bank ltd.
Dharamshala.” He emphasized on to evaluate the performance of particular bank with
reference to problem of NPA. The main tool used in the study was ratio analysis, trend
analysis and coefficient of variance and correlation. The final outcome is, there is high
positive correlation between net profit and net NPA which is not good indication. According
to researcher the most important basis for increase in NPA is negligence and wrong choice of
the customers, if the customers don’t pay interest and installment amount timely it has the
adverse impact on profitability on the bank. Finally he suggeststhat the proper management
and timely recover and worth full selection of customers may help to reduce NPA.

10. Preety, Dr. D.K maheshwari(2017):

Miss preety and D.K Malleshwari in their research paper titled "A study of management on
non-performing assets in co-operative banks of Uttar Pradesh". He emphasized on to estimate
the productivity of co-operative banks related non-performing as well as performing assets.
The tool they used to analyze the performance is comparative analysis. According to this
study there is a direct association between NPA and productivity of a bank. In this paper the
researcher suggests that bank has to take precautionary measure at the time of granting the
loans to customers.
 11. L.CathrineDivya and Dr. V. Chitra (2016):

L. CathrineDivya and Dr. Chitra in their research article titled "A Study of Non-Performing
Assets at Nilgiris District Central Co-operative bank, Tamilnadu. They emphasized on to
evaluate the level of NPAs in the particular bank. The main tool used by them was Ratio
analysis and Trend Analysis. The final outcome of the study is that there is a increase
tendency of the NPAs which influences the profitability of the bank. In this article,
researchers suggest that bank should not provide loans to non creditworthy people to avoid
NPA.

12. Jayashree R Kotnal and Dr. Meena R chandawarkar(2016):

Jayashree. R.Kotnal and Dr. Meena R chandawarkar in their paper titled "A study assets with
reference to Vijayapur district co-operative banks" Their purpose of the study is to examine
the measures and methods to reduce the NPA in co-operative banks of Vijayapur District. For
examine the tendency of NPA the used the tool called Hypothesis test and case study method.
They concluded their research by saying that there is decrease tendency of the NPA in the
particular bank which is good for the profitability of the bank.

13. Dr. DinabandhuMahal and Ms. Vidula Anil Adkar (2016):

Dr. DinabandhuMahal and Ms. Vidula Anil Adkar in their research paper titled "Impact of
NPA’s on profitability and productivity with special reference to JanataSahakari Bank Ltd".
This research paper evaluates the influence of NPA over the financial health and productivity
of a bank. The main tool used by the researcher was Correlation and Regression. The final
outcome of the study is there negative correlation between profitability and NPA of the bank.
Finally they suggests, managing of NPA is the crucial factor for the bank which will impact
on the efficiency and profitability if the bank could able to manage the NPA in proper manner
this will increases the efficiency of the bank.

14. UshaKapoorSatsangi (2016):

UshaKapoorSatsangi in her research paper titled "Recovery Management in Jaipur Central

Cooperative Bank". In her paper she mainly aims to examine the influence of NPAs on health
of CCBs and the prevention of NPAs. For the analysis she used the tool called case study
method. During the research paper she found, the CCBs are consistent enough to managing
the nonperforming assets in an Effective manner. She concluded her study by saying that
banks are taking pro-active measures to control the NPAs by adopting the right legal and
diplomatic ways to recover the same.

15. Dr. M.Karthikeyan and Dr. A. Mahendran(2016):

Dr. M Karthikeyan Dr. A. Mahendran in their research paper titled "Examination of Non-
performing assets in District Central Co-operative banks of Tirunelveli Region Tamilnadu".
In their study they mainly concentrate on to examine the problems and prospects of NPA in
DCCBs. For analysis they used tool called Ratio Analysis. During the study they found, the
overall recovery performance of the bank was showing increasing trend. The researcher
suggests that the proper supervision for the end-use loans is very much required to check the
credit delinquencies. The bank should follow the considerable improvement in the proper
inspection and supervision this could help to good recovery performance.

16. Dr. C. N. Chobe, and Bilas S. Kale (2016):

Dr. C. N. Chobe, Bilas S. Kale in their research paper titled "A Systematic study of Non-
Performing Assets of Devgiri Urban Co-operative Bank Aurangabad". They emphasized on
to study the situation of Non-Performing Assets of DUCB Ltd. Aurangabad. The main tool
used for study was Hypothesis test. The final outcome of the study is that there is a direct
impact of NPAs on net profit of the bank. According to the researchers increase in the NPAs
will reduce the financial health of the bank in terms of profitability and liquidity position so
this study suggests that proper recovery frameworks are very much helpful for bank in
reducing the level of NPAs.

17. KawalePushpalatha. G and SagarPandhari N (2014):

KawalePushpalatha.G and SagarPandhari N in their research paper titled "A study on NPA
management of latur district central co operative bank, latur. They emphasized on to evaluate
the effect of NPAs in LDCC bank. In their study they used the tool called Ratio Analysis to
make the examination of the data. During the study they found that there is a decrease
tendency of NPA in the particular bank. They ended up their research by saying that LDCC
bank is fallowing the prudential norms regarding NPA which was issued by RBI and
NABARD to reduce the percentage of NPA.
 18. Dr. A. XaviorSelvakumar and Mr. M. Irudhayaraj (2014):

Dr. A. XaviorSelvakumar and Mr. M. Irudhayaraj in their research paper titled

"Nonperforming asset management with special reference to Kumbakonam central co
operative bank Ltd. Tamilnadu. In their paper they aim to study the classification of NPA’s of
the bank. For the purpose of examination they used the tool called ratio analysis and also case
study method. According to authors the NPA of the bank is increasing every year. Because of
this the bank not only loses its income but also they are harmful for the economy. In their
study they suggests that the bank has to concentrate on recovery of NPA and it should take all
possible steps to avoid creation of fresh NPA. Andalso it is suggest that the stringent credit
policy should be followed by the bank for recovery.

19. S. Poornima (2013):

S. Poornima in her paper titled "NPAs and its impact on performance of Karnataka state
cooperative Apex Ltd". She mainly emphasized on to understand the conception of NPA and
the common reasons for assets becoming Non-performing. During the study she used ratio
analysis and graphical representation for the analysis. At the time of research she found that
there is increase of NPA every year so she suggested to the bank to reduce the same is that
the banker should get both the information formal and informal about the goodwill of the
customer. Finally she concluded her study by saying that the bank can avoid providing of
loans to the non credit worthy borrowers by adopting certain measures.

20. J. Nivethitha and G. Brindha (2012):

J. Nivethitha and G. Brindhain their research paper titled - An overview of NPA management
with reference to district central co-operative bank, virudhunagar. They emphasized on to
evaluate the magnitude of NPA’s and major causes for an account becoming non-performing.
At the time of research they used ANOVA and Ratio Analysis as a tool to conduct the
analysis. During their study they found that, crisis of NPA is raised due to weak monitoring
and poor credit appraisal system. According to the researcher bank has to set up the special
monitoring cell and also bank has to conduct the weekly and monthly review meeting for
timely recovery of NPA.
 CHAPTER – 3

RESEARCH DESIGN

STATEMENT OF THE PROBLEM:

At the point when the borrowers are not reimbursing according to the terms of approval for
reason outside their ability to control the Accounts becomes Non-performing assets. The
project manages with the study of ‘NON PERFORMING ASSETS WITH SPECIAL
REFERENCE TO SNEHA SOUHARDA PATTINA SAHAKARI NIYAMITA CO-
OPERATIVE SOCIETY’.

In the recent years, the wonder of Non-Performing Asset has become generally known and
widely discussed. The public and private sector, commercial and co-operative banks, national
and state level budgetary associations have come to experience the ill effects of elevated level
of NPAs. The degree of NPAs varies from institution to institution. They have harmed the
credit allotment, conveyance and recovery frameworks.

NPAs are unavoidable weight on the banking business. Hence the achievement relies on
techniques of supervision the NPAs as well as keeping them inside the tolerance level. A few
institutional components have created in India to manage NPAs and there additionally been
fixing of lawful arrangement. Maybe more significantly, successful administration of NPAs
requires a proper internal check and equalizations frameworks in a bank.

TOPIC SELECTED FOR THE STUDY:

"STUDY ON NON-PERFORMING ASSETS WITH SPECIAL REFERENCE TO SNEHA

SOUHARDA PATTINA SAHAKARI NIYAMITA CO-OPERATIVE SOCIETY, SS
PURAM, TUMKUR”.

NEED OF THE STUDY:

The examinations on Non-Performing Assets helps to a distinguishing proof and further more
for the hamper of the bank. The analysis of NPA assists with recognizing the explanations
behind an account transforming into NPA. The NPA decimated the income of the banks.
Reduction of NPA is pivotal action for bank. This intension the investigation of the NPA
management was attempted at Sneha Souharda Pattina Sahakari Niyamita C-operative
Society, Tumkur.

OBJECTIVES:

1. To know the level of Non-Performing Assets of Bank.

2. To identify impact of Non-Performing Assets on profitability.
3. To understand the policy followed to recover Non-Performing Assets.

SCOPE OF THE STUDY:

The scope of the study is very limited to Sneha Souharda Pattina Sahakari Niyamita Co-
operative Society, Tumkur. To make the current assessment of the bank, I have selected the
period from 2017-18 to 2020-21. The proposed study includes thorough examination of
Gross NPA and Net NPA as well as various ratios related to NPA during the study period. It
also includes classification of assets.

RESEARCH METHODOLOGY:

Research Methodology is the technique or system for collecting the needed information to
solve the particular problem and it is the basic plan which helps in the data collection. This
methodology specifies the type of information to be acquired and the source of data
collection procedures.

In the recent years, the wonder of Non-Performing Asset has become generally known and
widely discussed. The public and private sector commercial and co-operative banks, national
and state level budgetary associations have come to experience the ill effects of elevated level
of NPAs. The degree of NPAs varies from institution to institution. They have harmed the
credit allotment, conveyance and recovery frameworks.

HYPOTHESIS:

A Theory is a proposed clarification for a wonder. For a speculation to be logical theory, the
logical strategy necessitates that one can test it. Researchers by and large base logical
speculations on past perception that can’t sufficiently be clarified with the accessible logical
hypothesis.
Types of hypothesis:

1. Research hypothesis
2. Logical hypothesis
3. Statistical hypothesis

The statement of Hypothesis with reference to NPA at Sneha Souharda Pattina Sahakari
Niyamita Co-operative Society, Tumkur.

Null Hypothesis (H0) :There is no significant relationship exists between Debt recovery and
Profitability of the Bank.

Alternative Hypothesis (H1) :There is a significant relationship exists between Debt

recovery and profitability of the Bank.

LIMITATIONS:

1. The study is based on the secondary data provided by the bank and limited to five years.
2. The impact of results is subjected to the available data.
3. The study doesn’t cover any detailed analysis if made, the results would have been
different.
4. The study is only subjected to the Sneha Souharda Pattina Sahakari Niyamita co-
operative society in Tumkur.
CHAPTER SCHEME:

Chapter-1: Introduction

The introduction gives the information about the topic by specifying its theoretical
background and company details.

Chapter-2: Conceptual background and Literature review

It includes the background, origin and details of NPA.

Chapter-3: Research Design

This chapter gives the details of the research study. The title of the study , statement of the
problems, objective, scope, needs and limitations of the study.

Chapter-4: Analysis and Interpretation

This chapter provides the information which is taken from Sneha Souharda Pattina Sahakari
Niyamita co-operative society and it’s been analysed properly, the results are presented in
both graphical and sentences form.

Chapter-5: Findings, Conclusions and Suggestions

After the analysis and interpretations of data, the research is justified and followed by the
suggestions and conclusions.
 CHAPTER – 4

ANALYSIS AND INTERPRETATION

INTRODUCTION:

Data analysis is also well known as data analytics, it is a method of reviewing, refining,
changing and displaying information with the intention of finding out helpful data which is
underneath for taking the effective decision. Investigation and Interpretation is the technique
towards perceiving the quality of the association by correctly building up connection with
two factors. This procedure is a lot of helpful in decision making.

Ratio analysis is the quantitative system for understanding an organization's liquidity,

operational productivity and advantage of contemplating its fiscal summaries, for example,
balance sheet and income statements.

Uses of Ratio Analysis:

1. To simplify the difficult accounting statements into simple ratios.

2. It helps the company to identify the problem areas and make attention to the
management in such areas.
3. To compare the past and current data and this helps to know the financial health of the
company.
4. It also measures the connection between the two or more components of the financial
statements.

The following ratios help to the analysis and interpretation for this study:

1. Gross NPA Ratio

2. Net NPA Ratio
3. Sub-standard assets Ratio
4. Doubtful Assets Ratio
5. Loss Assets Ratio
6. Return on Total Assets Ratio
 1. Gross NPA Ratio:

It is a loan and advance which treated as irrecoverable, the bank has made provision and that
is still recorded in the books of accounts. Gross NPA will be counted in terms of percentage
(%) are as follows.

Gross NPA
Gross NPA ratio = × 100
Gross Advance

Table No.1:

years Gross NPAratio(%)

2018-19 4.73
2019-20 7.43
2020-21 9.09

Graph No.1:

10
9 Series 3
8
7
6
5
4
3
2
1
0
2018-19 2019-20 2020-21

Analysis:

The analysis of table tells the Gross NPA over Gross Advances in the year 2018-19 was
4.73%, in 2019-20 7.43% and at the year 2020-21 the percentage of gross NPA is 9.09% .
This shows the gradual raise in gross NPA.

Interpretation:
After analyzation from the table, it’s clear that the gross NPA is raising year by year, this due
to the impact of pandemic situation. So the bank need to overcome this in the upcoming
years.

2. Net NPA Ratio:

The net NPA ratio refers to a ratio which the provision is made for the NPA account and it
should be deducted from the gross advances.

Net NPA
Net NPA ratio = ×100
Net Advance

Table No.2:

years Net NPA ratio(%)

2018-19 1.74

2019-20 3.56

2020-21 6.32

Graph No.2:

7
Series 3
6
5
4
3
2
1
0
2018-19 2019-20 2020-21

Analysis:

The analysis of table tells the Net NPA over Net advances in the year 2018-19 was 1.74, in
2019-20 7.43 and at the year 2020-21 the percentage of net NPA is 6.32%. This shows the
gradual raise in the net NPA.
Interpretation:

After analyzation from the above table it’s clear that the net advance and net NPA is raising
year by year , this is a burden for bank . So, it need to overcome in upcoming years.

3. Substandard Assets Ratio:

Substandard assets ratio refers to the ratio in which there is a huge possibility of advances up
gradation development because it helps to easy recovery of loans when it as minimum period
of default.

Substandard assets
Substandard Assets ratio = ×100
Gross NPA

Table No.3:

years Substandard assets ratio (%)

2018-19 80.3

2019-20 71.9

2020-21 43.7

Graph No.3:

90
80 Series 3
70
60
50
40
30
20
10
0
2018-19 2019-20 2020-21

Analysis:
Above table shows that the sub-standard assets have been declining year by year from
2018-19 to 2020-21.

Interpretation:

The analyzation says that declining in substandard assets, it is because of loss occurred in the
year 2020-21 due the impact of pandemic, the bank not able to recover the amount on time.

4. Doubtful Assets Ratio:

Doubtful assets ratio refers to an ratio of the doubtful assets to Gross non- performing assets.
It specifies that scope of negotiation of NPA reduction.

Doubtful Assets
Doubtful Assets ratio = × 100
Gross NPA

Table No.4:

years Doubtful Assets ratio (%)

2018-19 17.15

2019-20 19.2

2020-21 35.86

Graph No.4:

40
35 Series 3

30
25
20
15
10
5
0
2018-19 2019-20 2020-21

Analysis:
The table shows doubtful assets ratio from 2018-19, 2019-20 and 2020-21 which has been
increasing.

Interpretations:

As the clear analyzation says that the assets positions from doubtful to the lossasset goes on
raising, this is because of non-payment of loans due to pandemic by the customers.

5. Loss Assets Ratio:

A loss asset refers to a ratio of the loss assets, to a gross non-performing assets, of the bank.

Loss asset
Loss Assets Ratio = ×100
Gross NPA

Table No.5:

years Loss Assets Ratio (%)

2018-19 2.25

2019-20 2.74

2020-21 7.34

Graph No.5:

8
Series 3
7
6
5
4
3
2
1
0
2018-19 2019-20 2020-21

Analysis:
Table showing the ratios of loss assets have been increasing yearly and its ability to recovery
of interest/principal will be identified.

Interpretation:

As the analyzation says that there is a increasing level of loss assets , it is because of loss in
the recovery of loans due to customers irregular payment of interest on time in the year 2020.

6. Return on Total Assets Ratio:

Return on total assets ratio is nothing but a ratio of the net profits to total assets of the bank.

Net Profit
Return on Total Assets ratio = ×100
Total Assets

Table No.6:

years Return on Total Assets

Ratio (%)

2018-19 0.37

2019-20 0.24

2020-21 (5.60)

Graph No.6:

1
Series 3
0
2018-19 2019-20 2020-21
-1
-2
-3
-4
-5
-6

Analysis:
The table showing the ratios of return on total assets, as in the year 2018-19 and 2019-20 the
bank get the returns but in the year 2020-21 the bank declines to losses.

Interpretation:

As the analyzation says that in the year 2018-19 and 2019-20 the bank gets the returns but
due to pandemic situation in the year 2020-21 it declines to losses. So in the upcoming years
the bank should recover it.

Karl Pearson’s Co-efficient of Correlation:

For my study I used above method as a statistical tool to examine the relationship between
net profits and debt recovery of the bank.

Correlation:

Correlation is the mutual relationship that indicates the level where two or more variables
vary together and it is indicate or measure the relationship between the two quantitative
variables. The value of correlation may be in negative or positive also.

Positive correlation indicates, when the worth of one variable increases as the worth of
another variable is also increases this called positive correlation.

Negative correlation indicates when the value of one variable decreases as the value of
another increases to show the inverse relationship between the variables is called negative
correlation.

Formula for calculation Co efficient correlation is:

rxy

Years X Y X2 Y2 XY

2018-19 49,767.00 47,665.00 2476754289 2271952225 2372144055

2019-20 34,313.00 33,472.00 1177381969 1120374784 1148524736
2020-21 (7,86,746.00) 7043.00 618969268516 49603849 (5541052078)
TOTAL (7,02,666) 88,180.00 622623404774 3441930858 (2020383287)
rxy = 3(-2020383287) – (-702666) (88180)

√[3 ( 622623404774 )−(−702666)2 ] *√[3 ( 3441930858 )−(88180)2]

rxy = 6061149861 – (-6196108788)

√[ 1867870214− (−4937395076 ) ¿]¿ * √[ 1032579257−7775712400¿ ]¿

1225725865
rxy =

√ 68052652290 * √(−6743133143)

rxy = 1225725865

260869.0328 * 82116.5826

rxy = 1225725865

2142167348

rxy = 0.5722

Interpretation:

The correlation co-efficient is 0.5722 this indicates of strong relationship between

profitability(X) and debt recovery(Y) of bank, hence Null hypothesis is rejected and
Alternative hypothesis is accepted.
 Chapter - 5

FINDINGS, CONCLUSION AND SUGGESTIONS

SUMMARY OF FINDINGS:

1. Gross NPA of the bank is unpredictable from year to year and it increased in the year
2020-21. This may impact on the financial position of the Sneha Souharda Pattina
Sahakari Niyamita Co-operative Society.
2. According to my study the sub-standard assets carries more NPA than the other
assets.
3. The Net NPA Ratio is increasing from last three years so the bank has to reduce its
credit portfolio due to decrease in the net profits.
4. The Sneha Souharda Pattina Sahakari Niyamita Co-operative Society is showing high
gross NPA Ratio which means the bank's asset quality is in poor shape.
5. The Return on total assets Ratio is decreasing every year. This means the bank is not
able to utilize its assets efficiently.
6. It is found that there is a negative correlation between profits and Net NPA of the
bank while calculating correlation.
7. Loss asset ratio for 2 years is less than 3% during my study period this indicate the
bank have only less loss making assets.

SUGGESTIONS:

1. The bank should capture necessary steps to reduce Gross NPA and it is important to
prevent creation of fresh NPAs.
2. The bank has to condense the deviation of substandard assets; this can be trim down
by recovery of NPA and by decreasing doubtful and loss assets.
3. SSPSNC Bank has to set up special monitory cell and has to conduct weekly and
monthly meetings for timely recovery of NPAs.
 4. The bank has to adopt the effective NPA management practices and it has to design
the strategies in such a way that mistakes made earlier are not repeated in the future.
5. Bank should be practical in the selection of customers while sanctioning of loans. And
the banker should get both the formal and informal information about the goodwill of
the customer. Bank should analyze the credit worthiness of the individual.

CONCLUSION:

This study is concluded by saying that the debt recovery and the profitability of the bank are
negatively correlated. There is no connection between financial health and debt recovery of
the Sneha Souharda Pattina Sahakari Niyamita Co-operative society. This study has provided
the comprehensive information regarding the financial background and none performing
Assets of the SSPSNC Bank.
NPA is the double edged sword so it can make losses in the interest income and provisioning
which affects the profitability of bank.
In order to reduce NPA and to perform the functions in the effective manner the Sneha
Souharda Pattina Sahakari Niyamita co-operative bank may adopt the suggested remedial
measures.
 BIBLIOGRAPHY

References:

 Annual Reports – Sneha Souharda Pattina Sahakari Niyamita Co-operative Society

 Dr. Venkatesh. S. katke (2016). Banking System in India. Solapur, Maharashtra, India:

Lakshmi Book Publication. 113.

Journals:

Dr. C Gowthaman. (2020). A study on Non performing assets on Namakkal Urban Co-
operative Bank. UGC Care Listed Journal. 68 (Issue 02), 34-37.

Dr. K. Vijaya Venkateswari and Ms. S. Vidhya. (2018). A study on Non performing assets
of Udhagamandalam co-operative Urban Bank Ltd. IJRMPS. 6 (Issue 6), 51-55.

Ms. Nivedita. (2018). A study on NPA of state corporate banks in India. International

Journal of Management Information Technology & Engineering. 06 (Issue 02), 86-91.

Dr. Subhas Chandra Sarkar and Dr. Dilip Kumar karak. (2018). A study on management
of Non performing assets of district central co-operative bank. Indian journal of accounting.
50(1) (Issue 02), 65-72.

Vimal Kumar Joshi and Dr. C. S. Joshi. (2018). A study on Non performing assets with
special reference to Pithograph District co-operative bank limited(Uttarkand). International
Journal of Engineering and Management Research. 08 (Issue 02), 52-58.

Dr. S. Shivakumar. (2018). A study on Non performing assets management with special
reference to Coimbatore City co-operative bank limited, Tamilnadu. International Journal of
Management Studies. 05 (Issue4(2)), 121-129.
P. Selvaraju. (2018). An Empirical study on Non performing assets of Urban co-operative
banks in Coimbatore district of tamilnadu. Asian Journal of Management Science. 07 (Issue
08), 106-113.

Miss preety and D.K. Mallreshwari. (2017). A study of Management on Non performing
assets in co-operative banks of Uttarpradesh. National Institute of Technical Teacher
Training and Research, Chandigarh, India. 08 (Issue- 01), 43-47.

L. Cathrine Divya and Dr. Chitra . (2016). A study on Non performing assets at Nilgiris
District Central co-operative bank, Tamilnadu. Asia pacific Journal of research. 01 (Issue
XXXVIII), 119-126.

Jayashree R Kotnal and Dr. Meena R chandawarkar. (2016). A study on Non performing
assets with reference to vijayapur district co-operative bank. International Journal of Applied
Research. 2(1) (Issue 02), 127-135.

Dr. Dinabandhu Mahal and Ms. Vidula Anil Adkar . (2016). Impact of Non performing
assets on profitability and productivity with special reference to janata sahakari Bank
Ltd. Journal of Indian Management Research Practices. 01 (Issue 01), 88-94.

Usha Kapoor Satsangi. (2016). Recovery Management in Jaipur Central co-operative

bank. IJESC. 06 (Issue 10), 34-37.

Dr. C. N. Chobe, Bilias. S. Kale. (2016). An analytical study of Non performing assets of
Devgiri Urban co-operative bank , Aurangabad. International Journal of Advance Research.
04 (Issue 03), 92-102.

Dr. A. Xavior Selvakumar and Mr. M. Irudhayaraj. (2014). Non performing assets
management with reference to Kumbakonam central co-operative bank Ltd,
Tamilnadu.. International Journal of Finance Research. 02 (Issue 11), 67-74.

J. Nivethitha and G. Brindha. (2012). An overview of NPA management with reference to

district central co-operative bank, virudhunagar. Middle-East Journal of Scientific Research.

04 (Issue 02), 118-122.

 ANNEXURES

FINANCIAL STATEMENTS:

BALANCE SHEET OF SNEHA SOUHARDA PATTINA SAHAKARI

NIYAMITA CO-OPERTIVE SOCIETY from 31-03-2019 to 31-03-2021

PARTICULAR MAR 21 MAR 20 MAR 19

EQUITY AND LIABILITIES
INDEPENDENT SHARE CAPITAL 50,00,000.00 50,00,000.00 50,00,000.00
Membership Share Capital 13,00,500.00 13,17,500.00 13,46,000.00
TREASURES
Building Fund 2,23,187.00 2,23,187.00 2,22,687.00
Reserve Fund 6,03,322.38 5,94,747.38 5,82,307.38
Operating Reserve Fund 4,75,834.00 4,68,974.00 4,59,024.00
General Fund 1,13,942.00 1,12,227.00 1,09,739.00
Deficiency Fund 1,70,676.00 1,70,676.00 1,70,676.00
Erosion Fund 97,305.00 97,305.00 97,305.00
DEPOSITS OF MEMBERS
Fixed Deposit 88,96,395.00 88,97,825.00 77,50,805.00
Pygmy Deposit 16,83,210.00 16,46,010.00 21,47,030.00
Savings Account 1,46,973.00 2,43,812.00 1,26,223.00
Cumulative Deposit 1,91,990.00 3,23,750.00 3,60,840.00
STAFF DEPOSITS
Staff Security Deposit 30,000.00 30,000.00 30,000.00
Pygmy Agent Deposit 95,000.00 95,000.00 ----
OTHER LIABILITIES
Audit fee reserved 15,000.00 13,748.00 13,674.00
A share divident of members 14,034.00 ---- 3,837.00
NET GAIN --- 34,313.00 49,767.00
TOTAL LIABILITIES 1,40,57,368.38 1,42,75,555.38 1,34,69,914.38
ASSETS
CURRENT ASSETS
Cash Balance 2,670.80 276.00 32.00
DCC Bank – Savings Account 83,965.00 1,53,744.00 2,67,861.00
TVC Bank- Savings Account 16,691.00 9,246.00 20,161.00
IDBI Bank- Savings Account 60,013.00 7,62,742.00 6,88,773.00
State Bank of Mysore 4,722.00 4,722.00 4,722.00
INVESTMENTS
DCC Bank Share 10,030.00 10,030.00 10,039.00
KSCCS Association 10,000.00 10,000.00 10,000.00
DCC Bank Deposit 26,00,000.00 26,00,000.00 24,00,000.00
TVC Bank 3,30,822.00 3,30,822.00 3,30,822.00
SharadaMahila Bank 1,00,000.00 1,00,000.00 1,00,000.00
Staffing Fund 31,000.00 31,000.00 19,000.00
MEMBER’S LOANS
Joint Debt 49,80,465.00 48,03,085.00 51,17,670.00
Steady Debt 9,90,000.00 10,90,000.00 9,15,225.00
Staff Debt 24,84,000.00 25,50,000.00 20,70,000.00
Fixed Deposit Loan 5,08,380.00 7,69,730.00 4,53,720.00
Machinery Debt 9,15,570.00 9,17,180.00 9,18,800.00
ADVANCES
Building Advance 15,000.00 15,000.08 15,000.00
Telephone Deposit 2,000.00 2,000.00 2,000.00
OTHERS
Share Divident 1,725.00 1,725.00 1,725.00
OTHER ASSETS
Printing and Article Inventory 51,226.00 41,910.00 52,000.00
Pitoes 72,342.58 72,342.58 72,342.58
NET LOSS 7,86,746.00 ----
TOTAL ASSETS 1,40,57,368.38 1,42,75,555.38 1,34,69,914.38
STATEMENT OF PROFIT & LOSS OF SNEHA SOUHARDA PATTINA
SAHAKARI NIYAMITA CO-OPERATIVE SOCIETY from 31-03-2019 to
31-03-2021

PARTICULAR MAR 21 MAR 20 MAR 19

INCOME
OTHER INCOMES
Entry Fee --- 10.00 50.00
Share Fee 315.00 125.00 1,360.00
Notice Fee --- 400.00 ---
Interest from loans 11,15,280.00 15,03,370.00 15,61,110.00
Service Charge 29,580.00 36,205.00 44,655.00
Savings Account Interest --- 50,404.00 ---
Interest from Investments 2,53,492.00 2,53,398.00 2,86,793.00
Pygmy Commission 8,910.00 17,095.00 19,080.00
TOTAL INCOME 14,07,577.00 18,61,007.00 19,13,048.00
EXPENSES
GOVERNANCE COSTS
Electricity Fee 1,299.00 1,248.00 1,158.00
Annual general meeting cost 9,600.00 44,320.00 43,250.00
Souharda Fee 9,440.00 8,000.00 8000.00
Insurance Cost 7,083.00 6,962.00 6,909.00
Office Rent 36,0000.00 36,000.00 36,000.00
Pygmy commission 2,20,575.00 2,80,985.00 2,93,755.00
Staffing Fund 12,000.00 ----- 12,000.00
Employees Salary 5,62,500.00 5,35,000.00 5,04,000.00
Stationary Cost 24,210.00 20,175.00 19,762.00
Stamp and Postal Cost 1,495.00 700.00 2,969.00
Telephone Cost 4,482.00 4,255.00 3,730.00
Gathering Cost 1,550.00 1,150.00 1,200.00
Other cost 45,032.00 43,205.00 39,990.00
Payment of fixed deposit interest 11,99,798.00 8,19,130.00 8,24,909.00
Advertising 4,000.00 1,800.00 1,200.00
Kodagu relief fund --- --- 5,000.00
Staffing gratuity --- --- 31,525.00
Election 15,000.00 --- ---
Income Tax 16,750.00 --- ---
CHANCES
Printing 8,509.00 10,090.00 14,250.00
Audit fee reserved 15,000.00 13,674.00 13,674.00
TOTAL EXPENSES 21,94,323.00 18,26,694.00 18,63,281.00
GROSS PROFIT or LOSS (7,86,746.00) 34,313.00 49,767.00
Less: Tax --- --- ---
NET PROFIT or LOSS FOR THE (7,86,746.00) 34,313.00 49,767.00
PERIOD