SOURCES OF CAPITAL
CAPITAL STRUCTURE & RELATED COMPUTATIONS
LAGUNA PRIME MULTIPURPOSE COOPERATIVE
PRE-MEMBERSHIP EDUCATION SEMINAR
SOURCES OF CAPITAL
1.Capital Build-Up
INTERNAL
a) Share Capital Contribution
b) Retention
derived from monthly contribution of 2% of monthly income
1% of every loan granted
2% of the interest on capital and patronage refund
SOURCES OF CAPITAL
2. Donation
INTERNAL
4.General Reserve Fund (GRF)
3. Membership Fee
Cash or material services given by the members of the cooperative
P 100.00
10% of net surplus mandated by RA 9520; for the stability of the cooperative
to be used for the capital if services/operations will be expanded and/or to absorb any loss that may occur
SOURCES OF CAPITAL
5. Deposits
INTERNAL
a. Savings Deposit
part of thes are used as capital for operation and/or loaning
SOURCES OF CAPITAL
INTERNAL
2. Savings deposit of FIVE HUNDRED PESOS (P500.00) or more during any calendar month shall earn interest to be computed quarterly based on the lowest monthly balance outstanding during the period.
3. The interest shall be credited to the depositor’s account, and the same shall earn interest from the date it was credited, at the same rate as savings deposits.
a. Savings Deposit
SOURCES OF CAPITAL
INTERNAL
b. Time Deposit
deposits for a fixed period of time and for a fixed rate of interest may be accepted by the Cooperative.
The time deposit certificate in the form prescribed by the duly constituted authorities on cooperatives evidencing deposit shall be issued to depositors.
BRACKET | 30 - 60DAYS |
5,000 - 99,999 | 0.75% |
100,000 - 499,999 | 1.00% |
500,000 and above | 1.50% |
TIME DEPOSIT (EFFECTIVE OCTOBER 1, 2023)
TIME DEPOSIT INTEREST RATES
SAVINGS DEPOSIT – 0.25% per annum
SOURCES OF CAPITAL
6. Revolving Fund/Capital
INTERNAL
7. Fund Raising Campaign
Part or whole of net surplus are retained to be used in the operation of the cooperative such as non-cash declaration of interest on capital and patronage refund, i.e. converted to share capital
Raffles, bingo, dance benefit, beauty contest, etc.
SOURCES OF CAPITAL
1. Borrowed Capital
EXTERNAL
2. Donation
a. Grants
b. Subsidies
Sourced outside the cooperative/membership
derived from banks and other financial institutions
cash or material services received by the cooperative from the community or other institutions
local or international agencies
in the form of internal or counterpart capital, services
SOURCES OF CAPITAL
4. Advances/ Deposits from customer or special depositors
EXTERNAL
5. Fund Raising Campaign
Sourced outside the cooperative/membership
Advances may be in the form of services/supplier, equipment to be amortized/paid at later date
Raffles, bingo, etc. involving the public (non-members)
3. Commission
As an agent or exclusive distributor of products or services (e.g., insurance, appliances, etc.)
CAPITAL STRUCTURE AND RELATED COMPUTATIONS
Authorized Capital
(Art. VII of Articles of Cooperation)
1.5 Billion divided into
1.125B Common Shares
0.375B Preferred Shares
STRUCTURE OF CAPITAL
DEFINITIONS
refers to the money paid or required to be paid by the members for the conduct of the operation of the cooperative. The share capital of the cooperative may consist of common share capital and preferred share capital both withdrawable upon termination of membership
SHARE CAPITAL
refers to the portion of the authorized share capital which the members pledged or agreed to pay as their share capital to the cooperative and shall be paid within a specified time as prescribed by the BOD
SUBSCRIBED SHARE CAPITAL
PAID-UP SHARE CAPITAL
portion of the authorized capital of the cooperative which has actually been paid by the members
DEFINITIONS
refers to a unit of capital, the par value of which is one hundred pesos (P100.00)
SHARES
All certificates issued and transferred shall be registered in the shares and transfer book of the cooperative.
SHARES CERTIFICATE
refers to a serially numbered certificate, which shall be issued by the cooperative every time a member acquires fifty (50) shares amounting to five thousand pesos (P5,000.00).
It shall contain the shareholder’s name, the number of shares owned, the par value and duly signed by the chairman and the secretary, and bearing the official seal of the cooperative.
ALLOCATION OF NET SURPLUS
is the excess of payments made by the members for the loans borrowed, or the goods and services bought by them from the cooperative. It is also defined as the BALANCE due the members from the payments made to the cooperative.
NET SURPLUS
RESERVES | USE/PURPOSE | ALLOCATION |
General Reserve Fund (GRF) | Stability and to meet losses | 10% min |
Cooperative Education and Training Fund (CETF) | 50% for Cooperative Education Programs coordinated and facilitated by the Education and Training Committee (ETC) 50% to be remitted to APEX organization(s) | 10% max |
DISTRIBUTION OF NET SURPLUS
Article 86 of RA 9520
RESERVES | USE/PURPOSE | ALLOCATION |
Optional Fund (OF) | Land and Building and other necessary fund | 7% max |
Community Development Fund | Shall be used for projects or activities that will benefit the community where the coop operates | 3% max |
DISTRIBUTION OF NET SURPLUS
Article 86 of RA 9520
RESERVES | USE/PURPOSE | ALLOCATION |
Amount available for Patronage Refund and Interest on Share Capital | To be distributed to members | Remaining balance from the Net Surplus after deducting the Statutory Reserves |
DISTRIBUTION OF NET SURPLUS
Article 86 of RA 9520
INTEREST ON SHARE CAPITAL AND PATRONAGE REFUND
is the equitable distribution of benefits based from the member’s participation/ patronage. The allocation from the Net Surplus after deducting the statutory reserves shall not be less than 30%.
PATRONAGE REFUND
INTEREST ON SHARE CAPITAL AND PATRONAGE REFUND
the share capital shall earn interest and the rate of which shall be computed as follows:
INTEREST ON SHARE CAPITAL
Rate = A x (Net Surplus after deducting SR)
Total Average Share Month
INTEREST ON SHARE CAPITAL AND PATRONAGE REFUND
A is the remaining % of the Net Surplus
WHERE:
LESS:
Statutory Reserves (SR)
LESS:
Patronage Refund Allocation
COMPUTATIONS
1.0M
Net Surplus
Less: Statutory Reserves
100K
100K
GRF (10%)
CETF (10%)
OF (7%)
70K
CDF (3%)
30K
300K
700K
COMPUTATIONS
700K
Net Surplus
(Less Statutory Reserves)
490K
210K
700K
Patronage Refund Allocation (30%)
Interest on Share Capital Allocation (70%)
COMPUTATIONS ON PATRONAGE REFUND
210K
Patronage Refund Allocation (70%)
210K/1.5M
1.5M
14%
Total Interest on Loans (paid by members)
RATE of Patronage Refund
RATE
INTEREST ON SHARE CAPITAL AND PATRONAGE REFUND
For P100,000.00
Example:
P1,260.00
Loan (7%)
x 14%
Member A
RATE of Patronage Refund
Interest Paid
P7,000.00
X
Service Fee
P2,000.00
P9,000.00
P9,000.00
COMPUTATIONS ON SHARE CAPITAL
490K
Interest on Share Capital (70%)
490K/5M
5M
9%
Total Average Share Month
RATE of Patronage Refund
RATE
PRIVATE FUNDING
AVERAGE SHARE MONTH
SERIES B FUNDING
2025
SERIES C FUNDING
2027
January
February
September
August
March
April
July
June
May
October
November
December
2,000
2,200 2,000+200
2,400 2,200+200
2,600 2,400+200
2,800 2,600+200
3,000 2,800+200
3,200 3,000+200
3,400 3,200+200
3,600 3,400+200
3,800 3,600+200
4,000 3,800+200
4,200 4,000+200
Total
37,200
Average Share Month
37,200/12=3,100
INTEREST ON SHARE CAPITAL AND PATRONAGE REFUND
Average share month
P1,260.00
x 14%
RATE of Patronage Refund
Interest/Service Fee paid
P3,100.00
X
P279.00
P9,000.00
X
RATE of interest of share capital
x 9%
TOTAL
P1,539.00
LAGUNA PRIME MULTIPURPOSE COOPERATIVE
PRE-MEMBERSHIP EDUCATION SEMINAR
THANK
YOU!