Maximum Marks Allotted
Marks awarded by auditor
1. Capital Structure (20)
The sum total of share capital and deposits at the end of the year should be compared with the loans outstanding against members at the end of the year. If the proportion is 10% and less no marks will be awarded. One mark will be awarded for each 10% of increase over 10.
2. Credit (Loans to members) (30)
(a) Work out of the percentage of the total volume of loans issued during the year to the total amount of loans required by members as part normal credit limit. Statements or proportion of the avearage loan issued per member to individual credit limit. Award one mark for each 5%.
(b) There should be a timelag of at least a fortnight between the date of repayment of a loan by a member and the issue of the fresh loan. Marks will have to be awarded on the basis of the usual time lag noticed.
(c) Percentage of overdues to demand under principal for the year.
(If the percentage of overdues to demand is 30, no marks. If it is less than 30, one mark for each 3% reduction. If the percentage is more than 30, minus one mark for each 6% increase up to a maximum of 5 marks).
(d) Percentage of overdues to demand under interest.
(If the percentage of overdues to demand is 20, no marks. If it is less than 20, one mark for each 4% decrease. If the percentage is more than 20, minus 1 mark for each 8% increase upto a maximum of 5 marks).
(e) Percentage of number of defaulters to total number of borrowers.
(If the percentage of defaulters to total number of borrowers is 20 or more, no marks. If the percentage is less than 20, one mark for each 4% reduction).
(f) Financial stability cover for bad and doubtful debts.
The total of the reserve fund and bad debts reserve should completely cover 100% of the Bad debts plus 50% of the doubtful debts. Work out the percentage of the former to the latter and award marks at the rate of 1 mark for each 6%.
3. Management (15)
(a) Rectification of defects pointed out in audit and inspection progress.
(b) Effective action against defaulting members (including legal steps).
(c) Holding of meetings-once a month at least to discuss ways and means to develop the busines of the Society.
(d) Maintenance of accounts (ledgers should be properly posted upto date and correct monthly and quarterly statements of receipts and payments should be prepared promptly and placed before the Board either by the Secretary or by full-time or part-time clerks).
4. General working of the Society including supply, marketing and processing functions trained office bearers or employees, committee members and educational activities. Marks to be awarded in the assessment made by the auditor.
Classification proposed for the year.
Maximum marks allotted
Marks awarded by auditor
Enrolment of members
Extent of business done
Provision for bad and doubtful assets
Maintenance of accounts
Rectification of audit and inspection defects
Holding of committee and General Body meetings.
General working including working results, service to members, trained office bearers or employees, committee members Educational activities etc.