Neelam Report

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<p>A PROJECT REPORT ON BHAVISHYA CREDIT CO-OPERATIVE SOCIETY A BRIGHTER ROAD TO FUTURE Training Undertaken at Bhavishya Credit Cooperative Society Ltd, UDAIPUR</p> <p>Submitted in partial fulfillment for the Award of degree of Master of Business Administration (2011-13) IN PACIFIC INSTITUTE OF MANAGEMENT (AFFILIATED TO RAJASTHAN TECHNICAL UNIVERSITY, KOTA)</p> <p>SUBMITTED TO:Mr. Sanjay Shukla Vice President B.C.C.S.L UDAIPUR</p> <p>SUBMITTED BY:Neelam Tiwari Pacific Institute of Management MBA PART II (3rd Sem.)</p> <p>1</p> <p>Acknowledgement</p> <p>Practical training is one of the most important requirements in MBA. Through this acknowledgement, I express my sincere gratitude towards Bhavishya Credit Co-operative Society Ltd. and all those persons who helped me in my training programme over here. My TRAINING with Bhavishya Credit Co-operative Society LTD. was truly a rewarding &amp; knowledgeable one. At the end it has served the purpose for which it has been designed by making me well acquainted with the practices, procedures, strategies in organization. It is my privilege to acknowledge the encouragement and guidance provided to me by Mr. Damodar Nagda Mr. Sanjay Shukla, Mr. Rajesh Sharma, Mr. Arvind Mehta, Mr. Jairaj Bhutara and Mr. Rajesh Pandya and all the directors of BCCSL during my internship. This project report has been made possible by the help and support of the Staff of Bhavishya Credit Co-operative Society LTD, UDAIPUR. I wish to convey my special thanks to Ms. Ruchika Mogra, Mr. Varun Jain &amp; Mrs. Richa Sharma for providing me with all necessary help and support that was really required for completing my project report.</p> <p>2</p> <p>AbstractA co-operative Society is a financial entity which belongs to its members, who are at the same time the owners and the customers of their society. Co-operative societies are often created by persons belonging to the same local or professional community or sharing a common interest Bhavishya Credit cooperative Society is flourishing day by day. Bhavishya Group is incorporated with the objective of providing best services &amp; effective guidance in terms of investment in the field of real estate and through our co-operative society. An in-depth research of the market instillation of technological progresses in all our services have made us capable of offering services in compliance with global renowned standards of quality. We try to provide our clients with basic information related to self-regulating of financial services in the country, so that our customers can catch a glimpse of the strict processes needed for rendering high quality financial services in the country. The project also encompasses, identifies the scope and various parameters, a customer would look into while transacting with society for certain scheme. The main aim of Bhavishya Credit Co-operative Society is to get profit as well as providing better product and services to its customers &amp; satisfaction also. It fulfills its social responsibility also towards its customers. Overall analysis has been done, keeping in mind the various customer segments like businessmen, salaried people, students and others, consideration while opting for any Investing Decision The SWOT analysis shows the pitfalls and identifies the opportunities available for Bhavishya Credit Co-operative Society. It says there are several product and services are available for customers of Bhavishya Credit Co-operative Society.</p> <p>3</p> <p>INDEX</p> <p>S. No.</p> <p>CONTENT</p> <p>PAGE NO.</p> <p>1</p> <p>Meaning &amp; Definition of Co-operative Society</p> <p>6</p> <p>2</p> <p>Introduction of Co-operative Society</p> <p>7</p> <p>3.</p> <p>History of Co-operative Society</p> <p>8</p> <p>4.</p> <p>Principles of Co-operative Society</p> <p>11</p> <p>5</p> <p>Characteristics of Co-operative Society</p> <p>12</p> <p>6.</p> <p>Advantages of Co-operative Society</p> <p>14</p> <p>7.</p> <p>Types of Co-operative Society</p> <p>16</p> <p>8.</p> <p>Formation of Co-operative Society</p> <p>19</p> <p>4</p> <p>9.</p> <p>Registration of Co-operative Society</p> <p>20</p> <p>10.</p> <p>Amendment Bye Laws</p> <p>31</p> <p>11.</p> <p>Bhavishya Credit Co-operative Society-Company profile</p> <p>35</p> <p>12.</p> <p>Directors panel</p> <p>40</p> <p>13.</p> <p>Products of Bhavishya Credit Co-operative Society</p> <p>47</p> <p>14.</p> <p>Market Research</p> <p>65</p> <p>15.</p> <p>Data Analysis</p> <p>69</p> <p>16.</p> <p>SWOT Analysis</p> <p>80</p> <p>17.</p> <p>Conclusion</p> <p>82</p> <p>18.</p> <p>Suggestions</p> <p>83</p> <p>19.</p> <p>Questionnaire</p> <p>84</p> <p>20.</p> <p>Bibliography</p> <p>86</p> <p>5</p> <p>Bhavishya Credit Co-operative SocietyA Brighter Road to FutureWhat do you mean by co-operative society?The meaning and definition of co-operative society: A co-operative society is a voluntary association started with the aim of service of its members. It is a form of business where individuals belonging to the same class join their hands for the promotion of their common goals. These are generally formed by the poor people or weaker section people in the society. It reflects the desire of the poor people to stand on their own legs or own merit. The philosophy of the formation of co-operative society is "all for each and each for all". Section 4, of the Indian Co-operative Societies Act, 1912 defines a cooperative "as a society which has its objective the promotion of economic interest of its members in accordance with cooperative principles". According to Calvert, a co-operative denotes a form of organization wherein persons voluntarily associate together as human beings on the basis of equality for the promotion of economic interests of themselves.</p> <p>CO-OPERATIVE SOCIETY IN INDIA Introduction of credit co-operative Societies A co-operative Society is a financial entity which belongs to its members, who are at the same time the owners and the customers of their society. Co-operative societies are often created by persons belonging to the same local or professional community or sharing a common interest. Co-operative societies generally provide their members with a wide range of financial services (loans, deposits, banking accounts etc.)</p> <p>6</p> <p>Credit Co-operative Societies differ from stockholder banks by their organization, their goals, their values and their governance. In most countries, they are supervised and controlled by banking authorities and have to respect prudential banking regulations, which put them at a level playing field with stockholder banks. Depending on countries, this control and supervision can be implemented directly by state entities or delegated to a co-operative federation or central body. Co-operative society institutions take deposits and lend money in most parts of the world. Cooperative societies, includes retail banking, as carried out by credit unions, mutual savings and loan associations, building societies and co-operatives, as well as commercial banking services provided by manual organizations (such as co-operative federation) to co-operative business.</p> <p>Customer-owned entities: In co-operative societies, the needs of the customers meet the needs of the owners, as co-operative society members are both. As a consequence, the first aim of a cooperative society is not to maximize profit but to provide the best possible products and services to its members. Some co-operative society only operate with their members but most of them also admit non-member clients to benefit from their banking and financial services. and financial services.</p> <p>Democratic member control: Co-operative societies are owned and controlled by their members, who democratically elect the board of directors. Members usually have equal voting rights, according to the co-operative principle of one person, one vote.</p> <p>7</p> <p>History of co-operative societies in India:For the co-operative society in India, co-operatives are organized groups of people and jointly managed and democratically controlled enterprises. They exist to serve their and democratically controlled enterprises. They exist to serve their members and depositors and produce better benefits and services for them.</p> <p>Professionalism in co-operative society reflects the co-existence of high level of skills and standard in performing, duties entrusted to an individual. Co-operative Society needs performing, duties entrusted to an individual. Co-operative Society needs current and future development in information technology. It is indeed necessary for cooperative society to devote adequate attention for maximizing their returns on every unit of resources through effective services.</p> <p>Co-operative societies &amp; banks have completed 100 years of existence in India. They play a very important role in the financial system.</p> <p>The Co-Operative Society in India form an integral part of our money market today. Therefore, a brief resume of their development should be taken into account. The history of cooperative society goes back to the year 1904. In 1904, the co-operative credit society act was enacted to encourage co-operative movement in India.</p> <p>The first phase of co-operative society development was the formation and regulation of cooperative society. The constitutional reforms which led to the passing of the Government of India Act in 1919 transferred the subject of Cooperation from Government of India to the Provincial Governments. The Government of Bombay passed the first State Cooperative societies Act in 1925 which not only gave the movement, its size and shape but was a pace setter of co-operative activities and stressed the basic concept of thrift, self help and mutual aid. This marked the beginning of the second phase in the history of Co-operative Credit Institutions.</p> <p>8</p> <p>There was the general realization that urban banks have an important role to play in economic construction. This was asserted by a host of committees. The Indian Central 39. The co-operative societies are expected to perform some duties, namely, extend all types of credit facilities to customers in cash and kind, advance consumption loans, extend banking facilities in rural areas, mobilize deposits, supervise the use of loans etc.</p> <p>The co-operative societies are expected to perform some duties, namely, extend all types of credit facilities to customers in cash and kind, advance consumption loans, extend banking facilities in rural areas, mobilize deposits, supervise the use of loans etc. The needs of cooperative bank are different. They have faced a lot of problems, which has affected the development of co-operative banks. Therefore it was necessary to study this matter.</p> <p>Profit allocation:In a co-operative society, a significant part of the yearly profit, benefits or surplus is usually allocated to constitute reserves. A part of this profit can also be distributed to the co-operative members, with legal or statutory limitations in most cases.</p> <p>Profit is usually allocated to members either through a patronage dividend, which is related to the use of the co-operatives products and services by each member, or through an interest or a dividend, which is related to the number of shares subscribed by each member. Co-operative societies are deeply rooted inside local areas and communities.</p> <p>They are involved in local development and contribute to the sustainable development of their communities, as their members and management board usually belong to the communities in which they exercise their activities. By increasing banking access in areas or markets where other societies are less present, farmers in rural areas, middle or low income households in urban9</p> <p>areas - co-operative societies reduce banking exclusion and foster the economic ability of millions of people. Co-operative societies play an influential role on the economic growth in the countries in which they work in and increase the efficiency of the international financial system. Their specific form of enterprise, relying on the above38 mentioned principles of organization, has proven successful both in developed and developing countries.</p> <p>10</p> <p>PRINCIPLES OF CO-OPERATIVE SOCIETIES The 7 co-operative principles are:1. Voluntary and open membership 2. Democratic member control 3. Member economic participation 4. Autonomy and independence 5. Education, training and information 6. Co-operation among Co-operatives 7. Concern for Community</p> <p>A co-operative bank is a financial entity which belongs to its members, who are at the same time the owners and the customers of their bank. Co-operative banks are often created by persons belonging to the same local or professional community or sharing a common interest. Co-operative banks generally provide their members with a wide range of banking and financial services (loans, deposits, banking accounts...).</p> <p>Co-operative banks differ from stockholder banks by their organization, their goals, their values and their governance. In most countries, they are supervised and controlled by banking authorities and have to respect prudential banking regulations, which put them at a level playing field with stockholder banks. Depending on countries, this control and supervision can be implemented directly by state entities or delegated to a co-operative federation or central body.</p> <p>11</p> <p>CHARACTERISTICS OF CO-OPERATIVE SOCIETIESA co-operative society is a special type of business organization different from other forms of organization you have learnt earlier. Let us discuss its characteristics.</p> <p>i. Open membership: The membership of a Co-operative Society is open to all those whohave a common interest. A minimum of ten members are required to form a cooperative society. The Cooperative societies Act do not specify the maximum number of members for any cooperative society. However, after the formation of the society, the member may specify the maximum number of members.</p> <p>ii. Voluntary Association: Members join the co-operative society voluntarily, that is, bychoice. A member can join the society as and when he likes, continue for as long as he likes, and leave the society at will.</p> <p>iii. State control: To protect the interest of members, co-operative societies are placed understate control through registration. While getting registered, a society has to submit details about the members and the business it is to undertake. It has to maintain books of accounts, which are to be audited by government auditors.</p> <p>iv. Sources of Finance: In a co-operative society capital is contributed by all the members.However, it can easily raise loans and secure grants from government after its registration.</p> <p>v. Democratic Management: Co-operative societies are managed on democratic lines.The society is managed by a group known as Board of Directors. The members of the board of directors are the elected representatives of the society. Each member has a single vote,12</p> <p>irrespective of the number of shares held. For example, in a village credit society the small farmer having one share has equal voting right as that of a landlord having 20 shares.</p> <p>iv. Service motive: Co-operatives are not formed to maximize profit like other forms ofbusiness organization. The main purpose of a Co-operative Society is to...</p>