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0 0 I0 0 0 0 0 0 cC 0g CHAPTER cI 0 C 0 0 0 SUMMARY OF FINDINGS, o 0 CONCLUSIONS AND o o RECOMMENDATIONS g 0 0 0 0 0 0 0 0 0 0 0 0 ...... 0 0 0 0 0 0 0 0
0 0 g S 0O000OOO00O0O000OOOO0OO0O00000000000 CHAPTER - 8
SUMMARY OF FINDINGS, CONLUSIONS AND RECOMMENDATIONS.
8.1. Introduction:
This chapter deals with a summary of my findings, various conclusions are drawn on the basis of different ratio analysis and suggestions regarding the functions of Adivasi Seva Sahakari Sansthas in Pune District. The findings and suggestions are based on the information and data collected by me from the various sources as the Annual Reports, Audit Reports personal discussion.
Questionnaire and interviews of the Directors, Chairman, Secretaries, Auditors, employees and members of the Sample ASSSs and officials of Maharashtra
State Co-operative, Tribal Development Corporation, Office bearers of different agencies and Tribal Leaders as well as secondary data was collected from the
Maharashtra Co-operative Quarterly, Annual Reports of Tribal Sub-Plan, various
Books on Co-operation, Magazines on Co-operation, Professional Journals,
R.B.I. Bulletin, Official and Statistics Published by Bureau of Statistics and
Published Books and Reports regarding to tribal.
8.2. Summary of Study;
The purpose of this chapter is to take stock of, how far the objectives of this study have been fulfilled and whether the hypothesis initially stated is true or otherwise. The desired objectives of hypothesis are stated in the chapter
second. Before making conclusions and recommendations the whole study can
be summarized as under.
447 First Chapter describes history of Co-operative movement in India and abroad as well as in Maharashtra State with meaning and definition of Co operation, Objectives and Philosophy and core values of Co-operation. This chapter also gives information, dimensions and contribution of Co-operative,
Co-operative legislation in India and Maharashtra State.
Second Chapter describes Research methodology adopted for the study.
In this chapter objective, importance, scope of study, hypothesis and research design are explained in detail. This chapter also gives information about likely contribution, limitations and chapter scheme of the study.
Third Chapter portrays the tribal scenario in India and in the Maharashtra
State with meaning of ‘Tribe’ in various context and tribal research in
Maharashtra. This chapter gives information about origin, development, objectives, functions, status and organizational set up of the ASSS. This chapter also highlights the strategic approaches adopted for the development of tribal since fifth five year plan. Glimpses and characteristics of Tribal people in India and Maharashtra. An attempt has been made to take brief review of literature concerned with tribal economy.
Fourth Chapter explains how effectively fund was utilized by the A SSS to earn income and to judge financial strength and weakness of A SSS. This chapter highlights financial progress and weakness of the A SSSs from 1995-96 to 2004-
OS. An attempt has been made to find out financial performance of Adivasi Seva
Sahakari Sansthas in Pune District. In this chapter source of fund, application of fund. Comparative position of Bank loan and members loan, comparative position of overdue, operating efficiency is highlighted.
Fifth Chapter describes financial performance of ASSSs. For that purpose widely used powerful technique of ratio analysis like Insolvency Ratio,
Profitability Ratio, Operational ratio are extensively used which depicts the financial efficiency of the sample ASSSs.
In Sixth Chapter researcher has presented case studies of four A SSSs to highlight the financial position and working of Adivasi Seva Sahakari Sansthas in Pune District.
448 Chapter Seven gives the profile of the survey area of Pune District. In this chapter researcher has tried to expose socio-economic conditions of sample
member households. In this chapter he has also explored opinions of Directors,
Auditor, Chairman, Secretaries and employees about the working and
performance of the ASSSs.
Chapter Eight concludes the study in which finding that emerged from the
study along with the suggestion, for possible improvement are summarized in
order to improve the functioning of ASSSs and meet challenges before the
A SSSs in changing the scenario.
8.3 FINDING AND SUGGESTIONS
8.3.1Findings: - The findings that emerged from the study along with the
suggestions, for possible improvements are epitomized here as follow.
A) FINDING OF TESTING THE FIRST HYPOTHESIS
1. Establishm ent: - Before 1990 there were only three A SSSs in Pune District
namely Dehane Asss in Khed Taluka, Shinoli Asss in Ambegaon Taluka, and
Madh Asss in Junnar Taluka. But after 1990, these tliree A SSSs are closed and
6 ASSSs in Khed Taluka, 10 ASSSs in Ambegaon Taluka and 10 ASSSs in
Junnar Taluka have been formed. Out of these 26 A SSSs one Asss is closed due
to overdue and 25 ASSSs are operating in their area. These ASSSs covers 64
Villages of three Tahasil of the Pune District. These A SSSs are being sponsored
by Pune District Central Co-operative Bank, Tribal Development Corporation,
and Government of Maharahstra.
2. Multi-purpose Services:-These ASSSs are providing multi-purpose
services in operating area to their members, i.e. Fair price ration shop.
Monopoly procurement. Milk collection centre, Consumption loan. Long,
medium and short term loans ect.
449 3. Members:-Total members all sample ASSSs were 6675 on 3P' March,
2005. Tirpad, Sendurli, Pimpalgaon ghode, and Uchhil ASSSs have scope to increase their members due to their large operating area. Dehane and Taleghar
ASSSs are generating maximum employment as compared to otherASSSs. All
A SSSs are working on co-operative principle.
4. Source of Fund: - These A SSSs are collecting their funds by way of own fund and borrowed funds.
A) Own Fund: - Own fund position of Uchhil, Moroshi, Pimpalgaon Joga and Madh were better so these four A SSSs proved that it strengthens the base of their own fund. Taleghar, Dehane, Sendurli, Tirpad and Khangaon own fund position was also good but these ASSSs more depending upon on sponsoring bank loan. Pimpalgaon ghode, Sal, and Inglun A SSSs own fund position is not sound and these three A SSSs were mostly dependent on sponsoring bank loan.
B) Borrowed Funds: - Uchhil, Moroshi, Pimpalgaon Joga and Madh ASSSs borrowed fund amount was less than total average so these four ASSSs were dependent on sponsoring bank loan for funds. Pimpalgaon ghode, Sal and Inglun
A SSSs borrowed fund average was more than the total average, so these ASSSs were more dependent upon sponsoring bank loans. Sponsoring bank was successful in filling up the credit gap.
5. Application of Funds: - These ASSSs utilized maximum amount of fund for advancing loans and investment.
A) Members Loans: - Moroshi, Uchhil, Khangaon,Tirpad, Pimpalgaon joga and Pimpalgaon ghode A SSSs members loan amount was more than Bank loans,
so these A SSSs earned more income. Taleghr and Dehane ASSSs members loan percentages was less than bank loan but these A SSSs earned more income from
other trading activities. Inglun and sendurli ASSSs members’ loan percentage
was less than bank loan therefore these A SSSs were suffering from losses. All
A SSSs sanction loan to members after the sanction of managing committee, but
450 secretaries played significant role in disbursement of loans. Loans recoveries were directly made by the secretaries.
B) Investmentr-Taleglir Asss utilized more amounts from total fund for investments as compared to other ASSSs. All ASSSs made investment as per the provision of State co-operative Act. Investment was in shares in
P.D.C.C.Bank, shares in sahakari sangh, shares in T.D.C. Fixed Deposits, N.S.C. etc.
C) Fixed Assets:-Taleghr and madh ASSSs have invested more amounts from fund in fixed assets as compared to other ASSSs. Therefore their interest income was reduced, but amount was invested for running other activities, so their income from other activities was increased. There was no investment in
fixed assets in case of Inglun, Uclihil, and Pimpalgaon Joga ASSSs.
6. Overdue: - Loan overdue continued to be a serious weakness of co-operative
structure. All ASSSs were suffering from overdue problem. Inglun, Uchhil,
Khangaon, Moroshi and Sendurli overdue problem was less than other ASSSs.
In all the ASSSs Pimpalgaon ghode, Sal and Dehane ASSSs were greatly
suffering from overdue problems out of the total respondent members more than
75% members noted their response that the A SSSs were suffering from overdue,
but actually themselves were include in overdue members. Due to State
Government loan freezing policy economically sound members were not
repaying the loans of the ASSSs. Bad debts problem of all A SSSs was serious.
7. Operating efficiency: -Operating efficiency of these ASSSs is judged by
profit, for that purpose income and expenses analysis was made and from that
following points are drawn.
I) Interest Income: - Sendurii, Moroshi, Dehane, Sal, Pimpalgaon ghode,
Khangaon Uchhil and Inglun A SSSs interest income percentage was more than
the other ASSSs, so there income position was fair. Taleghar Asss earned
451 income from other trading activities. Madh and Tripad interest income position was not sound.
II) Interest paid: -Pimpalgaon Joga, Madh and Uchhil ASSSs interest paid expenses were less than the other because these ASSSs did not accept deposits and sponsoring bank stopped the loans of Pimpalgaon Joga, and mudh ASSSs due to overdue and loss. So their interest paid was less.
III) Total expenses: - Moroshi, Dehane, Taleghr, and Khangaon ASSSs total expenses percentage to total income was less than the total average as compare to other ASSSs. Therefore these ASSSs were earning profit and others were suffering from losses.
IV) Profit: -Only Taleghr Asss was earning profits every year but all other
A SSSs were suffering from losses due to overdue and bad debts. Inglun, Uchhil,
Madh, Sal, Dehane and Moroshi A SSSs suffered from heavy loss.
V) Audit:-Taleghar Asss awarded a class for four years and B class for three years and C class for three years. Morishi, Sendurli, Dehane and Pimpalgaon ghode awarded B class for eight years and C class for two years. All other
A SSSs awarded C class for all years.
VI) Dividend:- Taleghar Asss was paying dividend regularly to its members and other ASSSs have not declared and paid dividend in a single year due to
overdue and loss. While operating efficiency of Taleghar, Dehane, Moroshi
Pimpalgaon ghode and Khangaon was fair and Sendurli, Tirpad, Sal, Uchhil,
Inglun, Madh, Pimpalgon Joga A SSSs were not good.
8. Working Capital: - Working capital amount indicates that Tirpad, Uchhil
and Khangaon A SSSs assets were sufficient to repay the liabilities and all other
ASSSs worlang capital indicated that assets were not sufficient to repay the
liabilities.
9. Ratio Analysis: -Ratio analysis is a powerful device to analyse and
interpret the financial health of the A SSSs. It is pointer or indicator of financial
strength, soundness. Position, or weakness of the ASSSs.
A) INSOLVENCY RATIO: - Insolvency ratio indicates short-term and
long-term solvency position of A SSSs during the period under review.
452 I) Current Ratio:-This ratio indicates financial position of Pimpalgaon Joga was good. Tirpad, Khangaon and Madh ASSSs were near to liquidity and all other A SSSs current ratio position was not good, and A SSSs will not be able to pay their current liabilities in time without facing difficulties in short-tenn period.
II) Debt Equity Ratio: - This ratio indicates that Moroshi, Khangaon and
Uchhil A SSSs gives more security to their creditors and Pimpagaon ghode, Sal,
Inglun, Dehane ASSSs provide less security to their creditors. Madh and
Pimpalgaon Joga ASSSs long-term financial position was very bad and
sponsoring bank has stopped to provide loan to these ASSSs.
III) Fixed Assets to Proprietors fund Ratio: - This ratio indicates that
Pimpalgaon ghode, Sal, Tirpd, Dehane, Sendurli, Moroshi and Khangaon ASSSs
fixed assets to proprietors fund ratio was desirable and all other A SSSs this ratio
was not desirable.
IV) Proprietary Ratio or Equity Ratio: - This ratio indicates that financial
position of these A SSSs was not stronger and long-term solvency was not good
and proper, because in total capital proprietors fund was only 24.55% and
borrowed fund was 75.45%. If this ratio compared to current ratio of all ASSSs
during the period under review was 1.42: 1 and it was less than 2:1 standard.
Therefore financial position of these A SSSs was not strong.
B) PROFITABLITY RATIO: - In fact Profits are the key indicators of the
ASSSs performance and efficiency is essential for the survival and growth.
These ratios are usefiil to measure performance and efficiency of the ASSSs.
I) Return on working capital Ratio: - Only Taleghar Asss has utilized
working capital properly and all other A SSSs have not utilized working capital
effectively and efficiently. Therefore these A SSSs are suffering from losses and
earning less profit. Net Profit to working capital total average percentage ratio
of all sample ASSSs was 1.11% during the period under review and such low
ratio is not a sign of healthy operations of the ASSSs.
II) Return on Capital employed Ratio: - Taleghar and Tirpad ASSSs return
on capital employed ratio was better than other ASSSs. Pimpalgaon Joga, Sal,
453 Dehane, Moroshi, Khangaon and Uchhil ASSSs return on capital employed percentage were less. Therefore these ASSSs earning profit, but profit percentage were less. Sal and Inglun ASSSs were suffering from loss continuously.
III) Return on share holder’s investment Ratio: - Taleghar Asss gives good return on share holder’s investment. This Asss has used resources of own fund very well, so profit percentage were increased. All other ASSSs have not utilized fund properly and Inglun Asss Profit position was not good due to
inefficiency.
IV) Return on equity capital Ratio: -This ratio indicates that Taleghar Asss
has invested capital in other activities effectively and have earned profit. All
other A SSSs have not utilized capital properly and were suffering from loss.
C) OPERATIONAL RATIOS: - These ratios indicate operational
efficiency of ASSSs.
I) Interest earned to total income Ratio: -The main income comes from
interest earned out of advances and investments.
II) Other income to total income Ratio:- This ratio indicates that only 33%
ASSSs earn income from other sources and have enhanced their income base
from non-interest income.
III) Interest paid to total income Ratio: - 75% of the sample ASSSs were
facing overdue problems and getting less income as compared to interest paid.
IV) Salary paid to total income Ratio: - Salary paid indicates very low
payment of salaries to the staff Secretaries and clerks who work in office were
not satisfied with the salaries they get was the cause of overdue, because they
were not trying and taking any efforts to recover the overdue.
V) Other expenditure to total income Ratio: - 58% A SSSs average percentage
ratio of other expenditure to total income was more than 26.15%. It indicates
that other expenditure of 58% A SSSs were more as compared to their income
due to continuous overdue.
454 VI) Total expenditure to total income Ratio: - 75% of the ASSSs total
expenditure was more than total income. Therefore these ASSSs were facing
continuous losses.
VII) Net Profit to total income Ratio: - 58% ASSSs this ratio was minus that means these A SSSs were inefficient and suffering from loss.
VIII) Establishment Exp. to total expenditure Ratio: - Total average percentage ratio of all A SSSs was 52.81% and Pimpalgaon ghode, Sal, Sendurli,
Moroshi, and Khangaon ASSSs have managed to keep establishment
expenditure at low level.
IX) Total income to working capital Ratio: - Income capability of the ASSSs
with respect to its working capital was very low. Such law ratio is not sign of
healthy operation. In case of all sample A SSSs this ratio showed declining trend
due to increase in over due and N.P.A.
FINDING FROM MEMBERS QUESTIONNAIRE ANALYSIS:
10. BENEFITS TO MEMBERS: - From the questionnaire analysis it was
found that 82% of members noted their response for they were taking loans from
ASSS regularly. More than 90% members expressed their response that
agricultural development was possible with the loans from ASSSs. 70%
member’s family developed with the help of ASSSs. Members were really
benefited and economically developed with the help of ASSSs services and
facilities.
11. Gender Composition:- 91% respondents were male and only 9% were
female it was found that mostly males takes part in the public and interaction
activities.
12. Age Range:- It was found that 50% respondents studied belonged to the
age group 20 to50 years, while 50% members belonged to the age group 51
years and above.
13. Educational Status:- It was found that 15% of respondents were illiterate
35% studied up to primary 44% up to secondary and only 6% above secondary
grade.
455 14. Occupational Status;- It was found that 63% respondents were farmers,
31% were agricultural labour. Out of total respondents 81% respondents have their subsidiary occupation as dairy.
15. Land holding:- 67% respondent have the land less than 3 acres and only
5% have land above 5 acres and 4% respondents were land less.
16. Purchase of food grains:- 52% respondents were purchasing food grains from market because private traders were giving them credit facilities. They urge that T.D.C. and A SSS should sell their commodities on credit also.
17. Use of modern agricultural Implements:- 57% of the tribal members used modem agricultural implements and 41% did not used.
18. Sale of M.F.P.:- 26% respondents sales M.F.P. to ASSS, 21% sales to
T.D.C. and 53% sales to the private trader because they get cash on the spot and
T.D.C. takes 2 to 3 months for payments.
19. Annual Income:-25% respondents have their income less than 15,000 per annum, 47% have income between 15,001 to 35,000 p.a. 16% belonging to income group 35,001 to 50,000 p.a. and only 12% respondents income was above 55,000 p.a.
20. Problem relating to functioning of ASSSs:- 42% members said that
ASSS was facing overdue problems, 5% said that there was corruption in the transactions of the ASSS 27% expressed their views that capital of ASSS was insufficient 17% members said that due to insufficient management and lack of skilled employees ASSS was suffering from losses.
21. Influence of politics:- 53% members expressed their views political influence was exist in ASSS.
22. Ignorance of Members:- Members were ignorant about the loan limit and duration of membership.
23. Loan expectations;- 43% respondents stated that the loan amount received by them was insufficient.
24. MEETING: - 45% of members remain present for annual general meeting, but only 17.3% of total members involved in decision making process of annual
456 general meeting and out of total members only 10.6% contested election for director’s post. This situation is not desirable because members are not using their rights of control on management. There is no regularity in monthly meeting and some secretary had been taken signatures on minute before meeting held and secretaries are playing important role in day to day work of ASSSs.
25. Reasons for choosing A SSS:- 30% respondents said that it is local institution. 10% said loans are waved off by Government. Most of the members have a misconception that the loan given by the A SSS is not a loan but the help and they were not punctual in respect of repayment of loans. These members did not repay the loan in time therefore the proportion of overdues were higher and this was one of the reason of overdue.
26. It was observed that even renovation of loan is not permitted by the co operative law the members and A SSS had renewed the loan.
27. Acceptance of deposits: - 94% members stated that ASSS was not accepting deposits. Thus it is clear that most of the ASSS are totally unsuccessfiil in collecting deposits from members and public because they can not offered as much interest on the deposits as the bank or other financial institutions give. Only Sal ASSS was collecting deposits from members, but it has stopped collection of deposits from 2000-2001 and refunded deposits collected from members.
28. Unnecessary expenditure:- Unnecessary expenditure was incurred on social obligation, festivals, marriages etc. which weakens the financial position of members. It results in the non payment of loan which leads to increase in bad debts. FINDINGS FROM THE QUASTIONNAIRE, DISCUSSION WITH DIRECTORS, SECRETARIES AND EMPLOYEES.
29. Number of directors:- 67% ASSS consisted of 9 to 10 directors. This number was less than that is required by the bye-laws.
457 30. Participation of Directors: - 50% directors were not interested in decision making process because they did not receive extra emolument, allowance or honorarium for that for that work.
31. Own fund position: - 90% of directors / respondents strongly feel that
10% amount should be deducted out of loan sanction as share capital. So that share capital will increase and they will be able to give loans to their members at reasonable rate of interest.
32. Base for loan granting:- While granting loans ability of repaying loan was not given much importance, because most of the scheme and consumption finance loan was for the economically backward tribals. Therefore security and ability of repaying loan was therefore considered secondary.
33. Loan recovery:- The directors faced several difficulties in recovery of loans such as low repaying capacity, not giving attention to reminder, mentality to non-payment of loan, high rate of overdues, local relationship, negligence of employees etc.
34. Reasons of bad debts:- Directors stated that percentage of bad debts was
30 to 40% and the reasons of bad debts were long term illness of the members, death of a members and expectation of subsidy from Government.
35. Difficulties in recovery:- Majority of the directors do not want to spoil their local relations and therefore are not able to take legal actions against defaulters. Willful defaulters, Non-availability of recovery officer, shortage of employees in recovery of loans, the members don’t take reminders seriously, loan disbursed to the non-eligible persons. Close relations of directors with members and political influence are also the hindrance in the recovery process.
36. The secretary and other employees of ASSS complained that the directors are engaged in their own work and some of the directors were using the post of directors just as a social status.
37. Provision for emergency expenses:- In most of ASSSs there was no separate provision for emergency loan.
458 38. The directors felt the need of their role in working of ASSS and they also
felt the need of training for themselves in the area, such as
Co-operative law, Book keeping and accountancy, recovery of bad debts, financial management etc.
39. Lack of efficiency:- Managerial inefficiency of the ASSS was the obvious reason for overdues. The Board of directors did not receive any honorarium and hence they shirked their responsibility of commitment.
40. Utilization loan for other Purpose:- Near about 40% directors / respondents gave reply that members did not utilize full part of the loan for
intended purpose.
41. There was a lack of internal check and control of daily working of ASSS.
42. The secretary and other employees of ASSS felt the need of training in
Book-keeping and accountancy, Banking and Co-operative law etc.
43. The secretaries working in the ASSSs were untrained with inadequate
qualification and they were playing dominant role in functioning of ASSS.
44. There was lack of Co-ordination and Co-operation among secretaries,
directors and members.
45. STAFF WELFARE: - Information received from management and
employee of ASSSs that salary paid to staff on lump sum basis and payment is
very low as compared to State Government servant. Staff welfare arrangement
was not made by any ASSSs. Total number of servant employed by all sample
A SSSs were 38 on 31^' March, 2005.
46. PERFORMANCE: - As per financial analysis Taleghar Asss performance
is better. Pimpalgaon ghode, Tirpad, Dehane and Khangaon is good, but others
are suffering from overdue problems and losses. During the year 1992-93 the
Taleghar Asss was given a memento and a certificate in recognition of its
excellent implementation of monopoly procurement and consumption loan
schemes, by the State Co-operative Tribal Development Corporation, Nashik. It
was selected from 1476 A SSSs in Maharashtra for its excellent work and 100%
459 recovery. The said Asss was also praised for its excellent work in tribal development.
From the above findings and the study it is observed that performance of Taleghar ASSS was better Pimpalgaon Ghode, Dehane, Moroshi and Khangaon ASSSs were good. However Sal, Tirpad, Sendurli, Uchhil, Inglun Madh and Pimpalgaon Joga ASSSs were not performing well they have scope to improve their performance. It is clear from above fmdings that the statement of the first hypothesis under the study has been proved.
B) FINDING OF TESTING THE SECOND HYPOTHESIS
The books of accounts are maintained as per the principle of accounting and reflect the financial position of the A SSSs through its Profit and loss Accounts and Balance Sheets. These data is valid for perfonnance analysis of their activities. However the co-operative Act requires much other information to be complied along with the final accounts. We observed that there are many violations of legal provision some of which are listed below.
As per Annual and audit reports of A SSSs of last 10 years and discussion with auditors following points are found. DISCUSSION WITH AUDITORS:
The interviews with auditors clearly point out the following.
1. The number of employees of ASSSs was not proportionate to the
transactions of the ASSSs. There is excessive load of work on employees.
This affects the efficiency of the ASSSs.
2. The employees of ASSSs were observed to have preliminary knowledge of
keeping books of accounts. The routine work is done by them. 98% of
the A SSSs do not have internal audit and therefore their accounts are some
how got finalized before A.G.M. mostly by taking help from the
experienced staff of other A SSS or outside persons. This throws lights on
460 the fact that employee of ASSSs need training in book keeping and
accountancy.
3. The directors have no knowledge about the proper ratio between loans and
own funds.
4. A SSSs were not found to create the reserve for bad and doubtful debts. But
it is very necessary to create reserve for bad and doubtful debts as the
percentage of doubtful debts in A SSSs is very high.
5. The auditors feel that ASSSs are useful to the tribal people for the
following reasons.
• In remote tribal area where, there are no banks the ASSSs are the only
alternative.
• They cater to the needs of the common people who don’t have security to
offer against loans.
• They are the good alternatives to money lenders (savkars) and even
banking sector.
6. Professional attitude should be developed in the directors of the ASSSs.
7. The model by bye-laws must be amended to suit the changed needs of
the A S S S s.
8. The auditors are of the opinion that present system of audit classification is
not objective but tends to be objective. Therefore the audit classification
must be based only on criteria of % (percentage) of bad debts,
% (percentage) of overdues. Such calculations must be made on the basis of
NPA provisions.
9. The directors are using traditional method of financial management. They
do not know the scientific methods of financial management.
10. The Co-operative law does not make mandatory for use of “Proper
accounting conventions” and accounting standard which must be provided
in the Act.
11. The principal of the doctrine of disclosures should be followed e.g. all
material facts and particulars should be disclosed, non-recurring and
exceptional transactions should be shown separately.
461 FINDINGS FROM ANNUAL AND AUDIT REPORTS:
4) Profit and loss accounts and Balance sheets were not prepared in N
form.
5) According to section 61, 62(1) sub-section 6(25) no proper books of
accounts were prepared and present within the time limit by the ASSSs.
Auditor also had pointed out that fact in his audit report.
6) According to by laws rule 65 following books were not maintained by
ASSSs. Dead stock Register, Deposits Register, 101 Register, Investment
Register, Rectification of report register, stationary, Printing, Stock
register. Loan register.
4) According to rule 33 members register in J form and rule 32 register in I
form were not Maintained by the A SSSs
5) According to section 24 share certificates were not issued to members and
members Nominees were not appointed.
6) Securities bonds were incomplete, and according to section 32(A) Pass
Book were not issued to members.
7) Signatures were not taken on credit vouchers from whom amount was
received.
8) There were defect in debit vouchers also and sanction of B.G.D. for
expenditure were not taken and mentioned in the minutes of the meeting.
9) Secretary and management committee members and their relatives have
taken Advances from ASSSs but these facts were not presented in the
meeting.
10) Notice of meeting was not sent to the members oral information was given to
the members and some ASSSs secretaries have taken signature in
minute’shook before the n\eeting was held
11) Meeting of the members and directors were not according to by laws and
permission of A. R.’s for expenditure was not taken.
462 12) Reserve fund and education fund were not provided according to by laws.
13) Secretaries were ignorant about preparation of final accounts and final
accounts were prepared by others.
14) Reserve fund and other fund shown in the Balance sheet were not invested.
15) Difference between loans shown in Balance sheets and loan list were not
reconciled.
16) According to provision in rule 107 B and sub-section 46(23) appropriate
amount of guaranty bonds of employees were not taken.
17) According to section 82 rule 73 previous years’ rectification reports were not
submitted in O from year after year.
18) According to rules 46 Board of Directors had not performed their
duties efficiently for recovery of loans and overdue.
19) According to section 107(c) rule 85 Secretaries had made violation of
previsions of laws regarding maintaining high cash balance.
20) 67% of ASSSs have not maintained their Profit and loss Account and
Balancesheets in N form as required by the Co-operative Act.
Barring few exceptions (Taleghar, Dehane and Pimpalgaon Ghode) majority of ASSSs have not maintained their Account as per Co-operative Societies Act. It is clear from above fmdings that the statement of the second hypothesis under the study has been rejected.
8.4.1 SUGGESTIONS
Considering the general observation and fmdings as have emerged
fi*om the detailed analysis of the data and discussion with secretaries, auditors,
directors and members the researcher made following suggestions for their
healthy growth and sound development. Government, Sponsoring bank.
463 Management, Employees and Members of the ASSSs are the main components, therefore suggestions are made in relation to above five components.
A) GOVERNMENT
1. Government should continue this scheme in future because it will
increase the standard of living of tribal peoples and will join the main
stream of national life.
2. Government should appoint staff of Asss and secretary should be a
Government servant so that there will be control on transactions and
activities of ASSSs.
3. To control the activities of secretary there should be a cadre of ASSSs like
Vivid Karykari Societies at Taluka and district level.
4. Training should be made compulsory to the employees, so as to make them
efficient for management of day to day transaction of ASSS.
5. There should be separate machinery for distribution of loans and
recovery for loans.
6. Price of agriculture and other goods purchased through the tribal
.Development corporation should be paid immediately because local
trader purchases goods on cash basis and T.D.D.takes three to four months
for payment.
7. Government should not adopt loan freezing policy in future, due to this
policy overdues tendency increases day by day and economically good
members are also not repaying the loans of the ASSSs.
8. Continuous audit programme should be implemented and balance
sheet should be got audited from professional auditor so that there will be
check on secretaries.
9. The use of “proper accounting conventions” and accounting Standard should
be provided in the Co-operative Act. and it should be made mandatory for
each A S S S .
464 B) SPONSORING BANK
10. Sponsoring bank should share some portion of loan recovery and
administrative expenses of ASSSs and give this amount to ASSSs so ASSSs
will be economically strong.
11. Sponsoring bank should sanction loans to these ASSSs within a short and
proper time.
12. Bank should try to adopt new loans schemes for the rural farmers
development i.e. Loans to farm house construction and loans for other
development activities of rural area.
13. Sponsoring bank should establish proper co-ordination between A SSSs and
bank and help to A SSSs for recovery of loans.
C) MEMBERS
14. Member must utilize the loan amount for proper reasons and avoid misuse;
due to this practice their income range will be increased.
15. The defaulter members must not be allowed to participate in election of the
A SSSs such a proposal must be prepared and sent to the State Government
for approval.
16. Members must repay the loans of A SSSs regularly for avoiding overdue
problems and give proper co-operation to A SSSs for development.
17. Member should conduct annual general meeting for proper control on
management. They should exercise this right positively.
18 Member should try to improve their financial position from the loan and
assistance received from the Bank and Government otherwise their financial
position will remain as it is.
D) MANAGEMENT OF ASSSs
19. The co-operative principles and values must be given very wide publicity
so as to educate the people and managing conwnittee. The deliberate and
effective training in co-operative principle and values will create strong
environment so as to achieve the objectives of co-operatives.
465 20. The directors of the A SSSs must be given training at periodical interval in
professional management, financial management, banking and co-operation.
21. The ASSSs must increase their non-interest income through profitable
multi-purpose services and try to develop the uneconomical services for
increasing income.
22. As a part of process of professionalisation, the ASSSs should embark on
computerization of their office operations.
23. The ASSSs should make the utmost efforts to mobilize deposits from
members for developing a sound and self-reliant co-operative credit
structure.
24. Management of A SSSs should try to increase members by infonning people
the importance of A SSS and co-operative value and thereby capital should
be collected for sound financial position.
25. The directors should take preventive measures to minimize bad debts and
overdue as prevention is better than cure. They should not finance more
than the loan repaying capacity, they should follow-up the recovery
consistently.
26. Recovery process of consumption loan should be intensified.
27. The directors may decide a policy to give loans for productive purpose
only. The loans for unproductive purpose are likely to lead to bad debts.
28. The employees should be sent for training. They must have good
knowledge of book-keeping and accountancy, banking and co
operative.
29. Internal check system should be implemented and the directors should
check the cash book and other necessary books frequently.
30. Secretary should comply with instruction given by the auditor and follow-up
the rectification of report.
31. Secretary should maintain their books of Account in ‘N’ form and as per
requirement of Co-operative Act.
466 32. Recommendation for active participation of all directors:
It is observed that only few directors take interest in the decision making
process. They also do not take active part in the working of ASSS. It is
necessary that all the directors should be active to ensure progress of the
ASSS. To overcome this difficulty the director should take following steps.
• To assign specific duties to every director.
• To hold the director responsible if the assigned task is not completed.
• To ensure attendance of every director. If he / she are absent for
3meetings suitable steps should be taken against him / her.
• Meeting fees, Honorarium, remuneration etc. should be paid to directors
so that they will take part enthusiastically in the management of ASSSs.
33. It is suggested that, all the A SSSs must prepare a list of loan details for each
director separately on the basis of recommendations made by him. This list
must be circulated to every director, eveiy month so that he will judge
whether the loans recommended by him are regular or becoming more and
more overdue. The comparison of overdue loans director wise must also be
prepared and presented in every BOD meeting, so that the comparison will
be discussed in the BOD meeting, and the director having high percentage
of overdue loan can be asked to follow-up such overdues. This practice
must be followed for every monthly meeting. If the loans recommended by
particular director show consistently high overdues of say exceeding 10%,
such director must be restrained from making any recommendation for
further sanction of loans to any borrower, unless his overdue list comes
down to 10%. This will create self discipline amongst the directors and help
develop sense of responsibility.
From the analysis of present study the above suggestions are made in relation to
four components of A SSSs for their sound development
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