In making a settlement, the Settlement Officer shall proceed as follows:--

(1) he shall hold enquiry in the manner prescribed;

(2) he shall divide the lands to be settled into groups;

(3) he shall ascertain in the prescribed manner the average yield of cropsof lands for the purposes of the settlement;

(4) he shall then fix standard rates for each class of land in each group,on a consideration of the relevant factors, as provided in sub-section (2) of section 116;

(5) he shall submit to the Deputy Commissioner a report hereinafter calledthe Settlement Report, containing his proposals for the settlement.