KUTCH CO-OPERATIVE BANK LTD.

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1 KUTCH CO-OPERATIVE BANK LTD. KUTCH CO-OPERATIVE BANK LTD. ESTD: 1998 B O A R D O F D I R E C T O R S Chairman Dr. Nemji K.Gangar Dahisar -- Kandagara Vice Chairman Shri Shantilal T. Shah Aarti Group Directors Shri Vishanji R. Vora, Borivali - Gelda Shri Khushal H. Dharod, Borivali Patri / Sadau Shri Mavji R. Gala, Vile Parle - Karagoga Shri Nemji H. Rambhia, Borivali- Ramania Shri Hemchand K. Gada, Mulund Hamla Manjal C. A. ( Smt.) Nilam N. Shah, Borivali Moti Khakhar Adv.( Smt.) Nilam D. Gogri, Borivali Patri Dr. ( Smt. ) Shikha Tayde, Dahisar Shri Narayan M. Tayshete, Dahisar Shri Sharad R. Vishwakarma, Dahisar Chief Executive Officer Shri. Bhuvnesh N. Vaidya

2 KUTCH CO-OPERATIVE BANK LTD. ( Reg. No. Mumbai / J.U.N.3 / B.N.K. / (0) / 202/ Dated ) Sheetal, Behind Diamond Talkies, L.T. Road, Borivali (We), MUMBAI Tel. No , Tel. Fax kutchbank@mtnl.net.in / kutchbank@gmail.com Website: TH NOTICE OF THE 15 ANNUAL GENERAL MEETING Notice is hereby given at e fifteen (15 ) Annual General Meeting of e Bank will be held at 4.00 p.m. on Tuesday, e 27 Augu, 2013 in e Bank's premises to transact e following business. 1. To read and confirm e minutes of e 14 Annual General Meeting held on 4 Augu, To consider and adopt report of e Board of Directors togeer wi Audit Report of e Statutory Auditors and Balance Sheet and Profit and Loss Account for e year ended To approve diribution of net profits and declare dividend. 4. To consider communications from Regirar and / or Statutory Auditors relating to e Annual Audit. 5. To appoint Statutory Auditors for e year To appoint Internal Auditors for e year and fix eir remuneration. 7. To consider and adopt e budget for e year To fix maximum limit up to which e Board of Directors may raise funds. 9. To conitute Dispute Settlement & Redressal Committee. 10. To approve writing off of bad and doubtful debts 11. Any oer matter wi e permission of e Chair. All e members are requeed to attend e meeting. By Order of e Board of Directors. (B. N. Vaidya) Chief Executive Officer nd Mumbai. Dated 6 Augu, 2013 Note: i. If ere is no quorum at 4.00 p. m., e meeting shall be adjourned as per New Model Bye-Law No.35 (iii) for half an hour and will resume at e same venue and e members present en shall conitute e quorum. 1

3 ii. If any of e members is desirous of knowing e details of e accounts or raising any oer issue /s during e meeting, he may submit his query or subject matter to e Bank at lea ree days before e date of e A.G.M. iii. Those of e shareholders who have not collected eir share certificates so far are requeed to collect e same from e Bank during e business hours on any working day. iv. Members are requeed to intimate any change in e name of nominee, office and residential address and atus etc. so as to keep our records up to date for e purpose of correspondence. v. Members are requeed to introduce e Bank to eir friends and relatives so at ey can also avail of e various services rendered by e Bank. vi. Shareholders can get a copy of e 15 Annual Report of e Bank from e Office of e Bank on all working days after 19 Augu, vii. Such of e Share Holders who have not yet collected eir dividend warrants of e dividend declared by e Bank for e financial year are advised to collect e same before 31 March, 2014 failing which e amount of dividend will be transferred to e General Reserve of e Bank as per e provisions of e Bank's Bye Laws. 2

4 DIRECTORS' REPORT Dear Members, MANAGEMENT KUTCH CO-OPERATIVE BANK LTD. On behalf of e Board of Directors I am pleased to welcome you all in today's meeting and present e Fifteen Annual Report on e business and banking operations of e Bank togeer wi e audited atement of Profit and Loss account for e financial year ended 31 March, 2013 and Balance Sheet as at 31 March, You may be aware at e Bank had appointed M/S Shirsat and Chavan, Chartered Accountants as Statutory Auditors of e Bank for e year M./S Shirsat and Chavan were appointed as e Statutory Auditors of e Bank as per e decision of e Special General Meeting held on 13 April, 2013 as per new amendment in e Co-operative Society Act.. The Bank's management is veed in e hands of able and committed Board of Directors All e Directors have been working in a cohesive manner. FINANCIAL POSITION DURING F.Y The Bank has performed well during e financial year The Bank has been able to regier all round progress which can be seen from e following table. The Bank has achieved it's targets in all e parameters as envisaged. The financial position of e Bank for e la ree years has been furnished hereunder for e information and knowledge of e members of e Bank. FINANCIAL RESULTS AT A GLANCE 3

5 It may be seen from above at e main financial indicators sugge at e Bank has regiered positive grow. The NPA of e Bank has been fully provided for and e net NPA of e Bank is nil as on 31 March, It is hoped at e same trend would continue in future also. MEMBERSHIP The total number of regular members as on 31 March, 2013 ood at 5575 as again 5235 regular members as on 31 March, There were few resignations causing refund of share capital. As again at some new members have been enrolled resulting in net increase of membership of 340. PAID UP SHARE CAPITAL Share Capital It may be seen from above at e total membership of e Bank has increased by 340 as compared to la year. As again is e share capital of e Bank has gone up from Rs lakh as on 31 March, 2012 to Rs lakh as on 31 March, 2013 regiering Amount in Lakh Capital good increase of Rs % during e year. I would once again submit for e information of e members at e maximum limit of subscription to e share capital of e Bank by an individual is Rs lakh. All e members would be aware at for any business our own funds (capital + reserve) would provide inherent reng and deposit base would provide lendable funds to e Bank. I erefore personally and on behalf of e Board of Directors of e Bank appeal to all share holders, community members, well wishers etc. to keep Bank's intere close to eir heart and generously subscribe to share capital of e Bank. DEPOSITS The total deposits of e Bank had gone up from Rs. Deposits lakh as on 31 March, 2012 to Rs lakh as on 31 March, 2013 regiering an increase of about %. It is a well known fact at e low co deposits of e Bank are a back bone of any bank. I earnely reque to all our business eablishments to patronize Kutch Co-op. Bank Ltd. for eir banking needs. Like oer banks our bank's deposits up to Rs lakh are insured wi Deposit Insurance and Credit Guarantee Corporation (Reserve Bank of India). Amount in Lakh Deposit 4

6 ADVANCES The total advances of e Bank have gone up from Rs lakh as on 31 March, 2012 to Rs lakh as on as on 31 March, 2013 regiering a grow of %. I am glad to inform all e members at our Bank's exposure to a single borrower has increased to Rs lakh for single borrower and Rs lakh for group borrowers w.e.f 1 April, I would also like to inform our members at our rates of intere charged on different types of loans are reasonable and comparable wi e intere rates of oer leading co-operative banks. I hereby reque all e members and oers to contact our Bank before going to oer banks / financial initutions for eir financial needs. NON-PERFORMING ASSETS Amount in Lakh Advances Advances Bank's gross NPA during e year has come down from Rs lakh (2.13 %) as on 31 March 2012 to Rs.9.11 lakh (1.11 %) as on 31 March, As again at Bank's net NPA has been reduce to 0 % as on 31 March, 2013 from 0.45 % as on 31 March Bank has made full provision again e NPA. I would like to inform and assure our members at e position of NPAs is conantly monitored by us and all efforts are made to keep it at e lowe level possible. WORKING CAPITAL Bank's working capital ood at Rs lakh as on 31 March, 2013 as again Bank's working capital of Rs lakh as on 31 March, 2012 indicating a grow of %. PRIORITY SECTOR ADVANCES Priority Sector advances of e Bank ood at Rs lakh as on 31 March, Priority Sector advances formed about % of total advances. The bank is yet to achieve target in respect of advances to Weaker Section wiin e Priority Sector advances. PROFITABILITY Bank has made profit of Rs lakh for e year ended 31 March, The Bank has provided Rs lakh toward tax liability. As a result of is e Bank has net divisible profit of Rs lakh available for appropriation. The Board of Directors has recommended appropriation of net profit of Rs. 37,11, as under: Statutory Reserve Fund: : Rs. 9,27, (25 % of net profit of ) % : Rs.11,91, Building Fund : Rs.10,00, Dividend Equalization Fund : Rs. 3,00, Additional B D D R provision : Rs. 1,00, Silver Jubilee Fund : Rs. 1,00, Development Fund : Rs. 92, Total : Rs. 37,11, Amount in Lakh Working Capital

7 Members may please recall at e Bank had paid 9 % for la two consecutive years. This year your Board of Directors are pleased to recommend 10 % p. a. subject to approval of e General Body. I sincerely hope and wish at e same trend of positive grow of e Bank would continue in e coming years and reward e shareholders of e Bank wi ill higher returns. REGULATORY COMPLIANCE The Bank had complied wi regulatory requirements wherever necessary during e year as detailed hereunder. 1. CRAR: The CRAR (Credit Risk Adequacy Ratio) of e Bank as on 31 March, 2013 ood at % ( % as on 31 March, 2012 ) as again e requirement of 9%. 2. LIQUIDITY: The bank has always maintained e CRR and SLR at e desired level and has never faced any liquidity problem. The bank has been complying wi e requirement of SLR invement in government and oer approved securities. 3. The Bank is following e inructions of RBI in respect of intere rates on deposits. 4. The Bank has not sanctioned any loan to Directors and eir relatives during e year The Bank has not violated RBI directive in respect of unsecured advances during e year The Bank has adhered to e atutory provisions relating to appropriation of net profit to Statutory Reserve Fund for e year The Bank has been regular in making payment of e deposit insurance premium to e DICGC and ereby ensuring insurance cover for e deposits of e cuomers as per e norms of e DICGC. Special care is being taken to ensure at none of e RBI or State Government inructions, guidelines or directives is violated. AUDIT AND INSPECTION Bank's Internal Audit for e year was entrued to M/S Shah and Savla, Chartered Accountants. The Statutory Audit of e Bank for e year has been conducted by M/S. Shirsat and Chavan, Chartered Accountants appointed by e Bank as per e decision of e Special General Body meeting held on 13 April, We are pleased to inform you at our Bank has been awarded 'A' Audit Classification for e year BOARD MEETINGS During e year under review, total of 13 Board meetings were held. I ank all e Directors of e Bank for eir whole hearted support, co-operation and valuable contribution in carrying on e affairs of e Bank. 6

8 CUSTOMER SERVICE In is competitive world, no bank can survive wiout sincere and efficient cuomer service. We at Kutch Co-operative Bank Ltd. are always concerned about e satisfaction of our cuomers. We assure our cuomers be of service from our side. The conructive suggeions of our cuomers and well wishers will be given due importance and attention. RELATIONS WITH STAFF During e period under review e relations wi e aff have been cordial and peaceful. TH 97 CONSTITUTIONAL AMEMNDMENT MAHARASHTRA CO-OPERATIVE SOCIEITY'S ACT, AMEMNDMENTS The Government of India have included Co-operative Societies in e conitution of India by carrying out 97 Conitutional Amendment. The amendments have become effective w. e. f. 15 February, The Government of Maharashtra have adopted e amendments by promulgating an ordinance on 14 February, The Bank has erefore adopted new model Bye-Laws published by e Government of Maharashtra in e Special General Meeting held on 13 April, Some of e changes effected by e said amendments and new model Bye-Laws concerning our Bank's membership have been lied below. 1. The value of each share of e bank has been fixed at Rs. 1000/-The admission ( entrance ) fee and share transfer fee has been raised to Rs. 100/-. 2. The membership of e bank has been divided in to ree categories as under: i. Ordinary Members ii. Active Members iii. Nominal Members 3. Know your Cuomer norms have been made applicable to new as well as old members. ACKNOWLEDGEMENTS Your Board expresses sincere gratitude to auorities such as Honorable Commissioner for Cooperation and Regirar of Co-op. Societies, Govt. of Maharashtra, Divisional Joint Regira, Mumbai Division Dirict Deputy Regirar (4) Co-operative Society and eir officials, Statutory Auditors M/S Shirsat and Chavan, Chartered Accountants and Internal Auditors M/S Shah and Savla, Chartered Accountants, Officers of e Reserve Bank of India for eir valuable guidance and assiance. We are grateful to our banker's viz. MDCC, HDFC, ICICI bank, Bank of Baroda. We are grateful to our landlord M/S Alchemie Financial Services Ltd. We look forward to em for eir suained support and co-operation. For and on behalf of Board of Directors Mumbai. 6 Augu, 2013 (Dr. Nemji K. Gangar) Chairman 7

9 ANNEXTURE A ( Rs. in lakh ) Name of e Bank KUTCH CO-OP BANK LTD. Head office / Branch Address Sheetal 1 floor, L.T.Road, Behind Diamond Talkies, Borivali (we), Mumbai Date of Regiration Date and no. of RBI licence UBD.MAH.MUM.1P/98-99 dt Jurisdiction Greater Mumbai No. of Share holders 5575 Paid up Share Capital Rs Total Reserves And Fund Rs (including BDDR) Deposit Saving Rs Current Rs Fixed Rs Advances Secured Rs Unsecured Rs Advances to Priority sector Rs Advances to Weaker Section Rs Borrowings M.D.C.C Bank Ltd NIL M.S.C.Bank Ltd NIL Oers NIL Invement Rs Overdue Rs Audit classification A Total Staff 13 Oer Staff 11 Total Sub aff 03 Working Capital Rs

10 10

11 10

12 10

13 10

14 10

15 KUTCH CO-OPERATIVE BANK LTD. Notes forming part of e Balance Sheet as at 31 March, 2013 and Profit & Loss Account for e year ended 31 March, 2013 I. ACCOUNTING POLICIES: 1. Accounting Conventions: The accompanying Financial Statements have been prepared following e going concern concept on a hiorical co basis under accrual syem of accounting and conform to e generally accepted accounting principles and applicable atutory provisions prevailing among Co-op. Banks in India, except where oerwise ated. 2. Invements: a. Invement are classified and valued in accordance wi e Reserve Bank of India guidelines. The Bank has accordingly classified its invement portfolio into e following 3 categories: i. Held to Maturity: These comprise of Invement intended to be held till maturity. Bank's invement in Government securities have been classified in is category. ii. Held for Trading: Invement acquired wi e intention to trade. iii. Available for Sale: Invement not classified eier as Held till Maturity or as Held for Trading. b. Valuation of Invement in ese categories has been done as follows; i. Held to Maturity: These Invements are carried at eir acquisition co. Premium if any, paid on acquisition is amortised over e balance period of maturity and written off every year. ii. Held for Trading/ Available for Sale: These Invements are valued scrip wise and appreciation / depreciation is aggregated for each class of securities and e net depreciation is provided for. Net appreciation in each category is ignored. Bank's invement in Government securities have been classified in is category. The oer SLR invements of e Bank are held in e GOI Treasury Bills. 3. Advances: a. The classification of advances into Standard, Sub-andard, Doubtful and Loss assets as well as provision on non-performing advances has been arrived at in accordance wi e guidelines issued by e Reserve Bank of India from time to time. b. A general provision on Standard Assets has been 0.25% of e outanding amount in accordance wi e guidelines issued by e Reserve Bank of India from time to time 11

16 4. Fixed Assets and Depreciation: a. Furniture & Fixtures, Computers and oer fixed assets are ated at eir written down values. b. All assets are depreciated on written down value meod at e rates considered appropriate by e management except Computer Syem & Software which are depreciated on raight line meod. These rates are: Furniture & Fixtures % Computer Syem & Software % Office Equipments % c. In respect of additions made during e year, depreciation is charged from e mon of purchase. 5. Revenue Recognition: a. Items of Income and Expenditure are generally accounted for on accrual basis. b. Income on Non - Performing Assets is recognised to e extent realised, as per e guidelines issued by e Reserve Bank of India. c. Intere on Government securities and oer fixed income securities is recognised on accrual basis. Income on discounted inrument is recognised over e tenure of e inrument. 6. Employee Benefits: a. As e Bank's aff is less an 20 in number, e provisions relating to contributions toward provident fund of e employees are not applicable to Bank. b.bank has taken Gratuity Insurance policy under e Group Gratuity Scheme wi e Life Insurance Corporation of India (LIC) to cover e gratuity liability of e employees. c. Leave encashment payable to employees as per rules has been fully provided for during e year. II. NOTES TO ACCOUNTS: 1. Bank has paid Gratuity subscription of Rs.0.69 lakh to e Life Insurance Corporation (LIC) during e year. The annual payment to e scheme for subsequent years will be made by e Bank on receipt of e demand from e LIC. 2. Claims again e Bank not acknowledged as debts Rs Nil ( previous year Rs. Nil) 3. Previous years figure have been regrouped / rearranged wherever necessary to conform to ose of e current year. (Nemji K. Gangar) (Shantilal T. Shah) (Vishanji R. Vora) (Bhuvnesh N. Vaidya) Chairman Vice Chairman Director Chief Executive Officer 12

17 13

18 AUDIT CERTIFICATE We have audited e Balance Sheet of KUTCH CO-OPERATIVE BANK LTD, Borivali as on 31 March 2013 and also e annexed Profit and Loss Account of e Bank for e year ended on at date. These financial atements are e responsibility of e management of e bank. Our responsibility is to express our opinion on ese financial atements based on our audit. We conduct our audit in accordance wi e auditing andards generally accepted in India. Those andards require at we plan and perform e audit to obtain reasonable assurance about wheer e financial atements are free from material misatements. An audit includes examining on a te basis, evidence supporting e amounts and disclosures in e financial atements. An audit also includes assessing e accounting principles used and significant eimates made by e Auditee. We believe at our audit provides a reasonable basis for our opinion. Furer to our comments referred to above, we report at 1. We have audited e books of accounts of e Head office. 2. We have obtained all e information and explanations, which to e be of our knowledge and belief were necessary for e purpose of our audit and found em to be satisfactory. 3. In our opinion, proper books of accounts as required by e Maharashtra Co-operative Societies Act, 1960 and rules made ere under were maintained so far as appears from our examination of ose books and proper returns adequate for e purposes of our audit were received from e bank. 4. To e be of our knowledge and belief and according to e information and explanations given to us, ere is no material impropriety and irregularities in e expenditure or in e realization of monies due to e bank. rd 5. In our opinion, e Balance Sheet give e information required by e 3 Schedule of Banking Regulation Act, 1949 (as applicable to Co-operative Banks) in e manner so required and give a true and fair view in conformity wi e accounting principles generally accepted in India. 6. The Balance Sheet and Profit and Loss Account dealt wi by is report are in agreement wi e books of accounts. 7. The transactions of e Bank, which have come to our notice, are wiin e competence of e Bank. 8. In our opinion and to e be of our information and according to e explanations given to us, e accounts give information as per e Maharashtra Co-operative Societies Act, 1960 and rules made ere under, subject to our remarks and comments in A B & C of our report, e accounts give a true and fair view: a) In e case of e Balance Sheet, of e State of Affairs of e Bank on 31 March 2013 b) In case of e Profit and Loss Account, of e PROFIT for e year ended on at date. 14

19 9. Form No. 1 and Form No. 7 is attached herewi. 10. The audit class of e Bank of e financial year is 'A'. For Shirsat & Chavan Chartered Accountants Place Borivali (We) Date 15 July 2013 (Mr. Vasant D. Chavan) partner (M No ) Panel No.6059 Mumbai 15

INDEPENDENT AUDITORS' REPORT

TO THE MEMBERS OF JAYASWAL NECO INDUSTRIES LIMITED INDEPENDENT AUDITORS' REPORT Report on e Standalone Financial Statements We have audited e accompanying andalone financial atements of JAYASWAL NECO INDUSTRIES