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Members are hereby requested to attend the meeting.
By Order of the Board of DirectorsCA. D.M.Gurav
CHIEF EXECUTIVE OFFICER
Place :DATE :
KARAD17/07/2013
NOTE :-1. Annual Report, Balance-Sheet & P/L Account will be made available on pre
intimation of the members at registered Head Office & all branches of theBank.
2. Annual Report, Balance-Sheet & P/L Account is published on Bank's website"www.karadurbanbank.com."
3. If there is no quorum the meeting will stand adjourned and the adjournedmeeting will be conducted after one hour as per provisions in Bye-Law No.24to transact the above business at the same venue.
4. Additional information, clarification, pertaining to above business is require,members are requested to write to the Head Office on or before 27.07.2013.
5. Attendence Certificate as per amended Co-Op. Law will be given to membersattending the said meeting. Please note that, Attendence Certificate is thepart of this Notice. Entry in the meeting hall is allowed only with this Notice &Photo ID.
The 96th Annual General Meeting of the The Karad Urban Co-op. Bank
Ltd., Karad will be held on Sunday,
to
transact the following business.
4 Aug. 2013 at 11.30 a.m. at Head
Office of the Bank, 516/2, Shahu Chowk, Shaniwar Peth, Karad
1. To read and confirm the minutes of the Special General Meeting held on 07.04.2013.
2. To approve the Annual Report for the year 2012-2013 alongwith Balance - Sheetand Profit & Loss Account.
3. To take note of Statutory Auditor's Report 2012-2013.
4. To accord sanction to the appropriation of profit for the year ended 31-03-2013.
5. Toappoint Statutory Auditors for the year 2013 -2014 and fix their remuneration.
6.(A)
(B)
7. To Sanction the project of Rs.10 Crs. of the proposed expanssion of Head OfficeBuilding.
8. To Sanction the purchase of existing premises of Staff Training & Research Centreat Vidyanagar.
9. To confirm the waiver of interest and recovery charges in respect of OTS andcompromise borrowers cases, as certified by the statutory auditors.
10. To sanction the Staffing Pattern of the bank.
11. To take note of loans and advances sanctioned to Directors and thier relatives.
12. To confirm the Capital Expences.
13. To consider any other subject with the permission of the Chairman.
To consider and approve the proposal of conversion of bank (whichis registered under MCS Act 1960) under Multi State Co-op. Societies Act2002 and to extend the area of operation of the bank in the whole states ofMaharashtra, Karnataka & Gujarat and to approve all the matters related toit.
To consider and approve Bye-Laws as per Multi state Co-operative Societies Act2002, as recommended by the Board of Directors.
16 DISCLOSURES OF REPO / REVERSE REPO TRANSACTIONS(Rs. in Lacs)
17 RBI has imposed penalty on bank of Rs.5.00 Lakh on 16th July 2012 for the violation of instructions/ guidelines of RBI in
regards of branch shifting.
18
thANNUAL REPORT2012 - 201396
1. ACCOUNTING CONVENTIONS :
2. REVENUE RECOGNITION :
3. ADVANCES :
4. INVESTMENTS :
5. FIXED ASSETS and DEPRECIATION :
6. Lease Payment :
The accompanying financial statements have been prepared following the going concern concept, on historical cost basis unless otherwise stated andconform to the Generally Accepted Accounting Principles (GAAP) in India, which encompasses applicable statutory provisions, regulatory norms prescribedby the Reserve Bank of India, Accounting Standards (AS) and pronouncements issued by The Institute of Chartered Accountants of India and accountingpractices prevalent in the banking industry in India.
The preparation of financial statements requires the management to make estimates and assumptions considered in the reported amount of assets andliabilities (including contingent liabilities) as of date of the financial statements and the reported income and expenses for the reporting period. Managementbelieves that the estimates used in the preparation of the financial statements are prudent and reasonable.
(a) Income/Expenditure is generally accounted for on accrual basis, unless otherwise stated.(b) Interest on performing advances is recognized on accrual basis.(c) Income on Non-performing Assets (NPAs) is recognized on realization, in terms of the RBI guidelines.(d) Interest on fixed income securities is recognized on accrual basis.(e) Commission income on the bank guarantees is recognized as income on realization basis.(f) Locker Rent, Building Rent is generally recognized on actual basis.(g) Other items of income are recognized on realization basis.(h) Cost towards Staff incentives is recognized on cash basis.
(a) In terms of guidelines issued by the RBI, advances to borrowers are classified into “Performing” or “Non-Performing” assets based on recovery ofprincipal/ interest. NPAs are further classified as Sub-Standard, Doubtful and Loss Assets.
(b) Provision for Standard assets, Sub-Standard, Doubtful and Loss assets is made as per RBI guidelines.
(a) Investments are classified under `Held to Maturity' (HTM), 'Held for Trading' (HFT) and 'Available for Sale' (AFT) categories as per RBI guidelines.(b) Bank decides the category of each investment at the time of acquisition and classifies the same accordingly. Shifting of securities from one
category to other is done as per RBI guidelines with the approval of Board of Directors. The depreciation if any on such shifting is provided for andbook value is of the security is changed accordingly.
(c) The Bank has adopted the Accounting Procedure prescribed by the RBI for accounting of Repo and Reverse Repo transactions. Costs and revenuesare accounted for as interest expenditure / income, as the case may be.
(d) Investments are valued in accordance with the RBI guidelines.a. Securities under the category Held to Maturity' (HTM) are valued at cost. Where ever cost is higher than face value, the premium is
amortized over the remaining period of maturity.b. Securities under the category 'Available for Sale' (AFT) are marked to market and are valued at Market Rate declared by FIMMDA as on
31st March 2013. On the basis of valuation if it results in appreciation the same is ignored and if it results in depreciation the same isprovided for. The book value is not changed after the valuation at year end.
c. Securities under the category 'Held for Trading' (HFT) are valued as per prices declared by FIMMDA. The depreciation if any is providedfor. The book value is not changed after the valuation at year end.
(e) Profit and Loss on sale of investment is accounted for in the Profit & Loss account considering the original cost of acquisition.
a) Fixed Assets are stated at Cost net of Deprecation.b) Depreciation on assets is charged on the Written down Value at the rates determined by the Bank, except in respect of computers, vehicles where it
is calculated on the Straight Line Method, at the rates prescribed by RBI.c) Depreciation on fixed assets is charged for the full year if the asset is purchased and installed during the first six months of the year. If the asset is
purchased and installed in the later six months then 50% of the normal rate of depreciation is charged.
Operating lease payments are recognized as an expense in the Profit and Loss account on a straight line basis over the lease term. The details of LeasePayment as below –
Notes Forming Part Of The Profit & Loss AccountFor the year ended 31 , March, 2013 and Balance Sheet as on that date
st
SIGNIFICANT ACCOUNTING POLICIES
19
thANNUAL REPORT2012 - 201396
7. Earning per Share :
8. EMPLOYEE BENEFITS :
9. TAXES ON INCOME :
10. EXTRAORDINARY ITEMS :
11. Other Notes :
(a) Earning per share are calculated by dividing the net profit for the period after tax attributable to equity shareholders (before appropriation) by weightedaverage number of equity shares outstanding during the period.
(b) The weighted average number of equity shares outstanding during the period are calculated by aggregating the equity shares outstanding at thebeginning of the period adjusted by the number of shares surrendered/ forfeited or issued during the period multiplied by the time- weighting factor,which is the number of days for which the shares are outstanding as a proportion of total number of days during the year. Net worth of the Bank as ondate of Balance Sheet is Rs. 1072616000.00. thus value of the share comes to Rs. 22.68.
a) Provident Fund & Pension FundThe defined contribution as per Provident Fund & Pension Fund scheme is charged to Profit & Loss Account.
b) GratuityGratuity liability is recognized as per actuarial valuation made at the end of financial year. The bank pays contribution to Life Insurance Corporation ofIndia who maintains Gratuity Policy for bank employees.
c) Leave EncashmentBank has provided for Leave encashment benefit on the basis of declaration obtained from bank employees regarding exercises the option.
(a) Income Tax comprises the current tax provision.(b) Income Tax Authority has demand Rs. 71368222.00 towards income tax & interest on tax for the Assessment year 2007-08, 2008-09 & 2009-10.
Bank deposited Rs.6,65,00,000.00 against demand and shown the amount as receivable. The demands are pending with various appellateauthorities.
Shri Parshwanath Co-op Bank Ltd., Sangli merged with the Bank w.e.f 03/12/2007. The assets and liabilities and the reserves and provisions taken over fromthe merging bank are incorporated in the financial statements. The SPCB Collection A/c is reflected separately in Balance Sheet.
a. The Bank has ascertained that there is no material impairment of any of its assets and as such no provision under Accounting Standard 28 issued bythe ICAI is required.
b. Reconciliation of inter Bank Accounts as on 31/03/2013 are completed.c. Previous year figures are regrouped or rearranged or reclassified wherever necessary to confirm the layout of the accounts of the current year.
(Rs. In Lakh)
TotalConsideration
201.10
Lease amountdebited to P & L A/C
up to 31/3/12
Lease amountdebited to P & L A/C
in the current year i.e.2012-13
Balance amountas on 31/03/2013
182.643.0715.39
Revenue 4440.36 14912.16 19352.52
Expenses 3944.80 12809.64 16754.44
Provisions 49.16 487.36 536.52
Profit Before Tax 446.40 1615.16 2061.56
Profit After Tax 312.48 1011.08 1323.56
Taxation 133.92 604.08 738.00
Segment Assets 48332.41 139956.61 188289.02
Segment Liabilities 45915.79 142373.23 188289.02
12. The Segment Reporting Statement on the basis of Product & Services AS ON 31.03.2013
Treasury Operations(Dealing in Govt.
Securities)
Other Banking Operations(Lonas & Advances and
Other Services)Total
20
thANNUAL REPORT2012 - 201396
A Cash Flow Generated From Operating Activities1 Net Profit as per profit and Loss A/c 1323.56
TOTAL 3118.13LESS:
Operating Profit before Working Captial Changes 3116.97
2 Adjustments for working Capital Changes
Net Working Captial Changes 2579.27
Net Cash generated from Operating Activities 5696.24B Cash Flow From Investing Activities
C Cash Flow From Financing Activities
D Net Increase in Cash & Cash Equivalents
Ajustments for Depr./ Amortisation of Fixed Assets 477.67Provision Made 536.52Provision for taxation 738.00Loss on Sale of Assets 3.75Recovery in writte off account 4.00Dead Stock wriiten Off 13.91Entrance Fees & other 16.51Income tax paid (TDS) 4.21
Profit on sale of Assets 0.43Provision against Contiengecies 0.73
(Increase)/ Decrease in Investment (12014.81)(Increase)/ Decrease in Advances (14739.97)Increase / (Decrease) in Borrowings 2500.00Increase / (Decrease) in Deposits 25963.73Increase / (Decrease) in Interest payable 1542.53(Increase) / Decrease in Other Assets (548.78)(Increase) /Decrease in Advance Income Tax 719.35Increase / (Decrease) in Other Liabilities 610.64Increase / (Decrease) in I.Tax liability (1419.75)Increase/(Decrease) in Branch Adjsutment (33.67)
Fixed Assets Acquisition (Net) (465.27)
Increase in Share Capital 766.80Payment of Dividend (339.27)
Cash & Cash Equivalents at the beginning of the year 20933.43Cash & Cash Equivalents at the end of the year 26591.93
NOTE: Cash & cash Equivalents1. Cash Balance 835.232. Balance with Reserve Bank Of India 13997.093. Balances with other Banks 11759.61
13. Cash Flow Statement For The Year Ended 31-03-2013
Sr.
No.Particulars
As on 31-3-2013
Rs. Ps.
V. K. Joshi
Dy. Chief Executive Officer
(Accounts Dept.)
CA. Dilip M. Gurav
Chief Executive Officer
CA. Uday V. Kulkarni
Chartered Accountants & Internal Auditors
Place :
Date :
Karad
12-07-2013.
(Rs. in Lacs)
For M/s. LIMAYE & COMPANY
CA. VIJAY THAKKAR (Partner)
Chartered Accountants
Statutory Auditors
21
thANNUAL REPORT2012 - 201396
To,
(As applicable to Co-operative Societies)
Section 81(5)(b) and
Rule 69 of the Maharashtra Co-op. Societies Act/Rules]
We have audited the accompanying financial statements of
as at March 31, 2013, the Profit & Loss Account and Cash Flow Statement for the year ended
on that date, and a summary of significant accounting policies and other explanatory information.
These financial statements are the responsibility of the management of the Bank.
Our responsibility is to express our opinion on these financial statements based on our audit.
We conduct our audit in accordance with the auditing standards generally accepted in India. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial statements are free from material
misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statement. An audit also includes assessing the accounting principles used and significant estimates made by the assessee. We
believe that our audit provides a reasonable basis for our opinion.
Subject to our comments and observations contained in the Audit Memorandum enclosed herewith, in our opinion and to the best
of our information and according to the explanations given to us, the financial statements read with significant accounting policies
and notes thereon give the information required by the Acts in the manner so required and give a true and fair view in conformity
with the accounting principles generally accepted in India:
1. We have audited the books of account of the Head Office and 23 Branches of the Bank. Remaining 25 branches of the Bank
are audited by J. B. Chavan & Associates, Chartered Accountants, Satara.
2. We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the
purpose of our audit and found them to be satisfactory.
3. In our opinion, proper books of account as required by the Maharashtra Co-operative Societies Act, 1960 and rules made
there under have been maintained so far as appears from our examination of those books and proper returns adequate for the
[Under Section 31 of the Banking Regulation Act, 1949
and
The Karad Urban Co-operative Bank Ltd. Karad Dist. – Satara,
which comprise the Balance Sheet
The Members of
The Karad Urban Co-operative Bank Ltd.
Report on Financial Statements
Responsibility for the Financial Statements
Opinion
Statutory Auditors' Report for the year ended 31st March, 2013
22
thANNUAL REPORT2012 - 201396
purposes of our audit were received from the branches and offices of the bank.
4. To the best of our knowledge and belief and according to the information and explanations given to us, there is no material
impropriety and irregularities in the expenditure or in the realization of monies due to the bank.
5. In our opinion, the consolidated Balance Sheet give the information required by the 3 schedule of Banking Regulation Act,
1949 (as applicable to Co-operative Societies), in the manner so required and give a true and fair view in conformity with the
accounting principles generally accepted in India.
6. The Consolidated Balance Sheet and Profit and Loss Account dealt with by this report are in agreement with the books of
account and show true and fair view of the state of affairs of the Bank.
7. The transactions of the Bank, which have come to our notice, are within the competence of the Bank.
8. In our opinion and to the best of our information and according to the explanations given to us, the accounts give information
as per the Maharashtra Co-operative Societies Act 1960 and rules made there under. Subject to our remarks and comments
in part A, B and C of our audit report, the accounts give a true and fair view:
(i) in the case of the Balance Sheet, of the of the Bank as at 31 March 2013;
(ii) in the case of the Profit and Loss Account, of the for the year ended on that; and
(ii) in the case of the , of the cash flows for the year ended on that date.
9. On the basis of CAMELS rating, the Bank has been awarded for the financial year 2012-13.
Urban/Semi urban Centers including ruralarea within the periphery of 10 K.M. fromthose centers from Satara, Sangli, Pune,Solapur, Kolhapur, Ratnagiri, Raigad Districtand new Mumbai, Greater Mumbai and itssuburbs.
ANNEXURE-"A"
As on 31st March 2013 (Rs. in Lakhs)(except 1,2,6A,6B,9,10,12)
}--------------------
5317610059
4729.697290.56
166697.8624847.858697.90
133152.12107342.27104110.87
3231.4047.86 %12.30 %2500.00
49001.933.44 %
"A'2061.56
694188289.03
48+1+1Total Branches (H.O.+Extn. Counter)MembershipShareholdersNominal MemberPaid Up Share CapitalReserve and Other FundsDepositsSavingsCurrentFixedLoans and AdvancesSecuredUnsecured% of Priority Sector% of Weaker SectionBorrowingsInvestments9% of OverduesAudit Class "A"Profit (Before Tax)Total Staff 694Working Capital