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AICMEU’s Baitulmal Cooperative Credit Society Ltd.

Twenty Second Annual Report

The Managing Committee of AICMEU’s Baitulmal Cooperative Credit Society Ltd. is pleased to present the 22^nd Annual Report and Statement of Accounts for the period 1^st April 2005 to 31^st March 2006 as audited by it’s internal auditor M/s Mukadam and Associates – Chartered Accountant. This was submitted to the Managing Committee which approved and resolved in it’s meeting held on  25^th July 2006 to forward it to the Annual General Body Meeting scheduled to be held on 14^th August 2006.

1. Membership and New Accounts

As on 31^st March 2006, the total membership of the society is 7391 as compared to 7356 on 31^st March 2005. Last year total 35 new members have been enrolled while 40 old members have resigned. Thus the society has registered 0.47% growth in membership compared to 1.23 in the preceding year. However the society has opened 609 new accounts during the year 2005-06 compared to 945 in the years 2004-05. The branch wise breakup is given as below.

Compared to the year 2004-05, the Head office, Kurla and Trombay branch have opened lesser number of new accounts while Govandi branch have increased this number in the year 2005-06.  Especially the Govandi branch has taken a lead over other braches in opening up of new accounts. Hence committee recommends appreciation to the staff of Govandi Branch by way of recording it in the minutes.

2. Share Capital of the society

The society’s share capital as on 31.03.05 was Rs. 18,79,860 which has decreased to Rs. 18,77,810 by 31.03.06. During the year 2005-06 the society has issued 4301 shares and refunded 4506 old shares, thus the net decrease in society’s share capital is of Rs. 2050 showing 0.11% decrease in last years share capital amount against 0.34% in the year 2004-05.

3. Deposits with the society

As compared to the year 2004-05 the total deposits of the society in 2005-06 has increased by 5.79%. On 31^st March 2005 the total deposit with the society was Rs. 88,06,464 while it has increased to Rs. 93,47,788 by 31^st March 2006. The branch wise deposit status of the society as on 31.03.06 was as below.

The major amount of deposits (58.24%) is through saving accounts, while R.I.D. deposit accounts 37.86% of the total deposits. The Investments and Fixed deposits are only at Head office, whereas Spot Collection is operative at all branches.  There is disparity among branches in mobilization of deposits. The Head Office mobilized over 49.11% of the total deposits, the Govandi office mobilized 25.38% and Kurla shares only 23.83% of the total deposits. And notably the Trombay branch mobilized only 1.65% of the society’s total deposits.

As compared to the year 2004-05 the saving deposit has increased by 19.15% increase the net saving deposit by Rs.8,75,087.44 as the total saving deposit recorded to Rs.54,44,337.26  on 31.03.2006 compared to Rs.45,69,249.82 on 31.03.2005.  Similarly the mobilization of Recurring Investment deposit have increased by 4.68% as it was Rs.33,80,714.70 on 31^st March, 2005 which increased to Rs.35,39,209.70 by 31^st March, 2006.

4. General Loans

During the year 2005-06 the society has granted and paid total general loans of        Rs. 59,00,100 to its 168 members as compared to Rs. 73,60,000 to 227 members in preceding year, showing a decline of 19.83%. The branch wise performance of the society in terms of granting general loans may be evaluated through the following table.

The above figures may also reflect the situation of overdue loans of the society as compared to the outstanding loans.  The service charges being higher compared to the prevailing rate of interest in the banks, has reduced the number of loan applicants. Moreover the security criteria of loan approval are seemingly strict for the applicants, which resulted in lower amount of loan grant to the members. These are all practical limitation, which we have to resolve.

5. Outstanding Loans

During the year 2005-06 the society’s outstanding loan has decreased by 12.05% (Rs. 8,40,639) as compared to preceding year. On 31.03.2006 the society’s total outstanding loans were of Rs. 61,36,280 against Rs. 69,76,919 on 31.03.2005.

6. Overdue loans

Overdue loans of the society has increased by Rs. 1,94,170 (8.03%) as compared to the previous year because on 31^st March 2005 the society’s total overdue loan was Rs. 24,15,075 which has increased to Rs. 26,09,246  (on 168 members) by 31^st March 2006. Total overdue loans as % of total outstanding loans is shown as 42.52%. But this does not give the correct picture as installments of salary holders vary according to payment. Salaries of February and March are normally delayed and hence installments. Moreover time for loans against gold ornaments is also increased as per convenience of the loanee. Moreover these overdue loans are not NPA’s as loanees continue to pay installments as well as service charge, though late. However the total unsecured overdue loans are Rs. 4,16,792 only which may become NPA. Thus the true picture of overdue loans is only 6.79% rather than 42.52% of the total outstanding loan as shown in auditor’s report. 

7. Income and Expenditure of the society

The Society net income in 2004-05 was Rs.13,07,141.85 only while in 2005-06 it amounted Rs.12,16,480.14 showing a decline of 6.93% in society income.  Whereas the net expenditure of the society has also decreased by Rs.83,989.94 (6.46%) compared to previous year. Barring the excess of income over expenditure, the society’s net expenditure in 2004-05 was of Rs. 12,98,904.83 which has decreased to Rs. 12,14,914.89 by year 2005- 06. 

The overall income and expenditure amount of the society during the year 2005-06 has decreased by Rs. 90,661.71 (6.93%) as compared to the preceding year. It was Rs. 13,07,141.85 for the year 2004-05 which decreased by Rs. 12,16,480.14 by the year 2005 - 06. The excess of income over expenditure of the society has decreased by Rs. 6671.77 (80.99%), as it was Rs. 8237.02 in 2004-05, which has decreased to Rs. 1,565.25 in 2005-06.

7.      Meetings of the Managing Committee

The managing committee of the society has met following fourteen times during the financial year 2005-06.

30.04.2005,                         28.05.2005,                       30.06.2005,                     30.07.2005,

30.08.2005,                         22.09.2005,                       11.10.2005,                     28.11.2005,

28.12.2005,                         31.01.2006,                       28.02.2006,                     31.03.2006