All loans including interest thereon and recovery charges in respect thereof which are found irrecoverable and are certified as bad debts by the auditor appointed under Section 81 shall first be written off against the Bad Debt Fund and the balance, if any, may be written off against the Reserve Fund and the share capital of the society.
All other dues and accumulated losses or any other loss sustained by the society which cannot be recovered and have been certified as irrecoverable by the auditor may be written off against the Reserve Fund or share capital of the society :
Provided that—
(1) no bad debts or losses shall be written off without the sanction of the general body;
(2) before any such bad debts or losses are so written off, the society, if it is affiliated and indebted to a Central Bank, shall first obtain the approval of that bank in writing and also the approval of the Registrar. If the society is affiliated but not indebted to the Central Bank and in all other cases it shall obtain the approval of the Registrar in writing. If the society itself is a Central Bank, approval of the State Co-operative Bank and the approval of the Registrar shall first be obtained :
Provided that in case of societies classified as A or B at the time of last audit, no such permission need be taken if the bad debts are to be written off against the Bad Debt Fund specially created for the purpose :
Provided further that the Registrar may, while giving the approval, impose such conditions as to the recoupment of the Bad Debt Fund and restoration of part or whole of the amount written off against the Reserve Fund, from out -of future profits as he deems fit.
(1) A society shall calculate the net profits by deducting the following from the gross profits for the year –
(i) all interest accrued and accruing oh amounts of overdue loans (excepting overdue amounts of loans against fixed deposit, gold, etc.);
(ii)O interest payable on loans and deposits;
(iii) establishment charges;
(iv) audit fees or supervision fees;
(v) working expenses including repairs, rent and taxes;
(vi) depreciation;
(vii) bonus payable to employees under the Payment of Bonus Act, 1965;
(viii) provision for payment of Income-tax;
(ix) amount to be paid as contribution to the Education Fund at the State Federal Society which may be notified by the State Government in this behalf;
(x) amount to be paid for contribution to the Co-operative Cadre Employment Fund;
(xi) provision for bad and doubtful debts;
(xii) provision for share capital Redemption Fund;
(xiii) provision for Investment Fluctuations Fund;
(xiv) provision for retirement benefits to the employees;
(xv) provision for any other claims admissible under any other law;
(xvi) provision for bad debts and revenue losses not adjusted against any fund created out of profits.
(2) In addition to the sums referred to in sub-rule (1) of this rule, the following sums shall be deducted by a society from its profits :-
(i) contribution, if any. to be made to any sinking fund or guarantee fund, constituted under the provisions of the Act, these rules or by-laws of the society for ensuring due fulfillment of guarantee given by Government in respect of loans raised by the society;
(ii) provision considered necessary for depreciation in the value of any Security Bonds or Shares held by the society as part of its investments.
(3) The net profit thus arrived at together with the amount of profits brought forward from the previous year shall be available for appropriation.]
(1) The other purposes for which a society may appropriate its profits shall be education and enlightenment of the members of the society as also any co-operative or charitable purpose including relief to the poor, education, medical relief and advancement of any other general public utility, provided that the expenditure on such items does not exceed 10 per cent of the net profits.
5 Subs. by G. N. of 16-10-1987.”. [(2) The net profits calculated in accordance with the provisions of rule shall be appropriated for the creation of —
(a) Development Fund.
(b) Dividend Equalisation Fund, or
(c) any other fund created under by-laws.]
(1) In addition to the sums referred to in sub-section (i) of Section 65, the following sums shall be deducted by a society from its profits before arriving at its profit for the purposes of sub-section (2) of Section 65;.
(i) Contribution, if any. to be made to any sinking fund or guarantee fund constituted under the provision of the Act. these rules or bye-laws of the society for ensuring due fulfillment of guarantee given by Government in respect of loans raised by the society.
(ii) Provision considered necessary for depreciation in the value of any security, bonds or shares held by the society as part of its investment,
(iii) Any provision required to be made for the redemption and share capital contributed by Government or by a Federal Society.
(1) A society may create out of its net profits a fund to be called the Bonus Equalization Fund 6 Subs by G. N. of 8-11-1972.”. [for payment of bonus to persons other than its paid employees] 7 Added by G. N. of 21-9-1972.”. [who are not its members].
(2) Except otherwise specifically authorised by the Registrar, 6 Subs by G. N. of 8-11-1972.”. [the fund] so created shall be utilised in accordance with the provisions of the bye-laws of the society only 8 Subs by G. N. of 7-11-1990.”. [for payment of such bonus].
9 Subs by G. N. of 1-8-1972.”. [(3) A society may create the Dividend Equalization Fund and credit to it a sum need exceeding 2 percent of the paid-up share capital in any year, until the total amount in such Fund amounts to 9 percent of the paid-up share capital. The society may draw upon this fund in any year only when it is unable to maintain a uniform rate of dividend it has been paying during the last preceding five years or more.]
(4) No society shall declare a dividend at a rate exceeding that recommended by its committee.
The rates at which the classes of societies specified under column (2) of the Table below shall contribute annually under Section 68 towards the education fund of the State Federal Society, which may be notified in this behalf by the State Government, shall be those which are respectively specified against them in column (3) of the said Table
Sr.No | Class of Society | Kate of contribution per year per society |
1 | 2 | 3 |
1 | Maharashtra State Co-operative Bank | 2 paise per Rs. 100 of working capital subject to a maximum of Rs. 5,00,000. |
2 | Maharashtra State Co-operative Agricultural and Rural Development Bank. | Rs. 1/10 per cent of working capital subject to a maximum of Rs. 1,00,000. |
3 | Maharashtra State Co-operative Marketing Federation. | Rs. 1/10 per cent of working capital subject to a maximum of Rs. 150,000. |
4 | Maharashtra State Co-operative Housing Finance Corporation. | Rs. 1/10 per cent of working capital subject to a maximum of Rs. 1,00,000. |
5 | Maharashtra State Co-operative Consumers' Societies Federation. | 2 paise per Rs. 100 of working capital subject to a maximum of Rs. 2,00,000. |
6 | Maharashtra State Co-operative Sugar Factories Federation. | Rs. 5,000 |
7 | Maharashtra State Co-operative Fisheries Federation. | Rs. 1,000 |
8 | Maharashtra State Co-operative Cotton Grower Marketing Federation. | Rs. 1,50,000 |
9 | Maharashtra State Co-operative Diaries Societies Federation. | Rs. 5,000 |
10 | Maharashtra Co-operative | Rs. 5,000 |
11 | Spinning Mills Federation. Maharashtra State Co-operative Power-looms Societies Federation. | Rs. 2,500 |
12 | Maharashtra State Co-operative Textile Corporation. | Rs. 1,000 |
13 | Maharashtra State Co-operative Handloom Societies Federation. | Rs. 2,500 |
14 | Maharashtra State Agricultural Produce Market Committees Federation. | Rs. 1,000 |
15 | Maharashtra State Co-operative Cotton Growers Processing Societies Federation. | Rs. 2,500 |
16 | Maharashtra State Co-operative Tribal Development Corporation. | Rs. 1,000 |
17 | Maharashtra State Co-operative Tribal Development Corporation | Rs. 1,000 |
18 | Maharashtra State Co-operative Labour Societies Federation. | Rs. 1,000 |
19 | Maharashtra State Co-operative Banks Association. | Rs. 5,000 |
20 | Maharashtra State Co-operative Oil Seed Processing Federation. | Rs. 5,000 |
21 | Maharashtra State Sugar Industries Development Cooperative Societies. | Rs. 1,000 |
22 | Maharashtra State Co-operative Engineering Societies. | Rs. 1,000 |
23 | Maharashtra State Co-operative Jangle Kamgar Federation. | Rs. 1,000 |
24 | Co-operative Sugar Factories. | 20 paise per ton of the last year Sugar Cane crushed, subject to maximum of Rs. 75,000. |
25 | District Central Co-operative Banks | (a) District Central Co-operative Banks of Raigad. Ratnagiri, Sindhudurg, Chandanpur and Gadchiroli Rs.10,000. |
(b) The revitalised District Co-operative Banks in the State Rs. 15,000. | ||
(c) Other District Central Co-operative Banks in the State Rs. 30,000. | ||
26 | Sholapur District Industrial Cooperative Banks. | Rs. 15,000 |
27 | Urban Co-operative Banks. | (a) Working capital upto Rs. 5 crores Rs. 5,000. |
(b) Working capital of Rs, 5 crores to Rs. 50 crores of Rs. 10,000. | ||
(c) Working capital above Rs. 50 crores Rs. 30,000. | ||
28 | Urban Co-operative Credit Societies. | 1/10 per cent of Working Capital, subject to minimum rupees 100 and maximum of Rs. 5.000. |
29 | Salary Earners. Factory Workers, Mills Workers. Thrift Fund and Credit Societies. | 1/10 per cent of Working Capital, subject to maximum Rs. 1,000. |
30 | District Agro Industrial Serva Seva Co-operative Societies and Purchases and Sale Societies having jurisdiction in one or more Districts. | 1/10 per cent of Working Capital,subject to maximum of Rs. 20,000. |
31 | Primary Marketing Societies. | 1/10 per cent of Working Capital,subject to maximum of Rs. 2,000. |
32 | Whole-sale Co-operative Consumer Stores. | 1/10 per cent of Working Capital,subject to maximum of Rupees 20,000. |
33 | Primary Co-operative Consumers Stores. | 2 paise per Rs. 100 of working capital, subject to minimum of Rs.100 and a maximum of Rs.2,00,000. |
34 | Co-operative Spinning Mills. | (a) Which have not gone in production of Rs. 1,000. |
(b) Which have gone in production of Rs. 10,000. | ||
35 | Primary Seva Sahakari Sanstha. | (A) Rs. 10 in respect of those which have suffered loss during the previous cooperative year. |
(B) 1/10 per cent of the Working capital in respect of whose which have earned profit during the previous year subject to maximum of Rs. 1.000. | ||
36 | Milk Co-operative Unions Taluka and District. | (a) Having collection of 3 lacs liters Milk of previous year Rs. 500. |
(b) Having collection of 3 to 4 lacs litters Milk of previous year Rs. 1,000. | ||
(c) Having collection of 4 to 5 lacs liters Rs. 1.500. | ||
(d) Above 5 lacs liters Rs. 2,000. | ||
37 | Primary Co-operative Dairy Societies. | Rs. 100 |
38 | Co-operative Poultry Societies Federation. | Rs. 100 |
39 | Co-operative Lift Irrigation Societies. | Rs. 100 |
40 | Agricultural Processing Cooperative Societies. | Rs. 100 |
41 | Grain Banks. | Rs. 100 |
42 | Piggery and Live Stock Cooperative Societies (including breeding). | Rs. 100 |
43 | Sugarcane Supply Co-operative Societies. | Rs. 500 |
44 | Industrial Co-operative Estate. | Rs. 100 |
45 | Labour Contract Co-operative Societies. | Rs. 100 |
46 | Forest Labourers Co-operative Societies. | Rs. 100 |
47 | Agricultural Non-Credit Cooperative Societies. | Rs. 100 |
48 | Non-Agricultural Non-Credit Societies. | Rs. 100 |
49 | Co-operative Farming Societies. | Rs. 100 |
50 | Co-operative Fisheries. | Rs. 100 |
51 | Primary Co-operative Poultry | Rs. 100 |
52 | Vidarbha Premier Co-operative Housing Society. | Rs. 5000 |
53 | Co-operative Housing Society. | (a) Having jurisdiction of Corporation, Nagarpalika and Cantonment Board, per Member Rs. 3. |
(b) Having jurisdiction of Gram Panchayat Per Member Rs. 2 | ||
54 | Vidarbha Co-operative Marketing Societies. | 1/10 of the Working Capital subject to maximum of Rs. 20,000 |
55 | Co-operative Distillery Societies. | Rs.5000 |
56 | Mula Pravara Co-operative Electrical Societies Limited Shrirampur District Ahmednagar. | Rs.1000. |
57 | Other Societies. | (a) Village and Taluka jurisdiction .... Rs. 100 |
(b) District jurisdiction ... Rs. 500 | ||
(c) State jurisdiction .... Rs. 1,000.] |