Draft Final Report of the Task Force on Revival of Cooperative Credit Institutions
4.41 The amount required for taking the CRAR of cooperative institutions to a minimum of 7%, can only be arrived at after the recapitalised balance sheets are available. In the light of the fact that the system has an inherent linking of share capital contribution to loans and that the accumulated losses of the system would have been wiped out at the end of the cleansing process, the amount required is not expected to be large.
Retirement of Government Share Capital
4.42 As at the end of March 2003, the contribution of State Governments to the share capital of CCS institutions aggregated Rs 1,243 crore, as shown below:
4.43 Elsewhere in the report, the Task Force has recommended that "the time has now come for cooperative credit institutions to return the equity received by them from the State Governments over time. To facilitate this process, which constitutes an important cornerstone of its recommendations, the Task Force recommends that soft loan support be provided to institutions which do not have the wherewithal to return State Government equity".
4.44 The Task Force hopes that the CCS institutions at different levels will understand the justification for and implications of the recommendations made by it, and find the resources for returning State Government equity. However, a sum of Rs 1,243 core has been factored in, as part of the recapitalisation, as soft loan assistance to CCS units, just in case they are unable to do so.
4.45 The recommendations of the Task Force for Technical Assistance have been delineated at various places in the report. The major components under this head, including the amounts required, are detailed below:
|Designing of special balance sheets and training manuals, training of trainers for the special audit||0.50|
|Training of auditors for conduct of special audit||0.50|
|Special audit costs and vetting by CAs||45.00|
|Accounting and Technological support||516.00|
|Designing of standard common accounting system and accounting manual, translation into local languages and printing, training of trainers||1.00|
|Designing standardised accounting software based audit and information systems and , development of common software etc.||215.00|
|Designing of hardware configurations (Personal Computer, dot-matrix printer, modem, networking arrangements, UPS), installation and AMC and funding for supplying the same under a need based arrangement||300.00|
|Human Resource Development||108.00|
|Designing standardised training manuals, training materials, translation and printing costs||2.00|
|Training of Trainers||1.00|
|Conduct of Training Programmes for Board members, staff, and members of PACS, DCCBs and SCBs||105.00|