th - greater bank sheet as at 31st march 2012 ..... 12 6. profit & loss account for the year...

60TH ANNUAL REPORT 2011-1260 YEARS OF TRUST AND BONDING

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THE GREATER BOMBAY CO-OPERATIVE BANK LIMITED

Registration No. 20277 Dated 15-11-1952 RBI Licence : UBD/MH/867/P/Dated 6-10-1987

Regd. Add. : G.B.C.B. House, 89, Bhuleshwar, Mumbai- 400 002. Corporate Office : Baldota Bhavan, 3rd Floor, 117, M. K. Marg,

Churchgate, Mumbai - 400 020. Tel: 6128 5900 Fax: 2207 6989

1. Board of Directors, Management, Auditors and Bankers ............................................................02

2. Notice of the Meeting ...................................................................................................................03

3. Report of the Board of Directors ..................................................................................................04

4. Position at a Glance ....................................................................................................................11

5. Balance Sheet as at 31st March 2012 ..........................................................................................12

6. Profit & Loss Account for the year ended 31st March 2012 .........................................................16

7. Schedules ....................................................................................................................................18

8. Notes to the Balance Sheet and Significant Accounting Policies ................................................20

9. Cash Flow Statement ..................................................................................................................32

10. Internal Auditor’s Report ..............................................................................................................34

11. Statutory Auditor’s Report ...........................................................................................................36

12. Progress at a Glance ...................................................................................................................38

13. Branch Network ...........................................................................................................................39

14. Other Offices ...............................................................................................................................40

15. Special Health Check Up Plan ....................................................................................................42

16. Information for Members .............................................................................................................44

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BOARD OF DIRECTORS

Shri. Narendrakumar A. Baldota, B. Com. Chairman

Shri. Shantilal B. Chhajed, B.A., B.Com., FCA Vice Chairman

Smt. Madhuri P. Baldota, B.A.(Hons.) Director

Shri. Ashok B. Vakharia, B.Com. Director

Shri. Anand P. Ahire Director

Shri. Parasmal P. Golecha Director

Shri. Subhash R. Baldota, B.Com. Director

Shri. Punkaj J. Mehta, B.E. (Electrical) Director

Shri. Manmohansingh H. Ratti, Dip.in Hotel Mgmt. Director

Shri. Shrenik N. Baldota, B.Com. Director (co-opted)

Shri. Shreedhar M. Paraande, M.Sc.,LLM.,CAIIB, A.I.B. (London) Director (co-opted)

Shri. N. B. Rege, B.Com., CAIIB Director (Staff Representative)

Shri. Prabhakar Chavan Director (Staff Representative)

Shri. Narendra D. Behere, B.Com., LLB, CAIIB Chief Executive Director

MANAGEMENT

Shri. Shekhar A. Desai Sr. General Manager M.Com (Hons.), LLB (Gen.), CAIIB (I), ACA, DISA

Shri. Syamal K. Basak General ManagerB. A., CAIIB

STATUTORY AUDITOR

M/s. P. C. Ghadiali & Co. (Chartered Accountants)

INTERNAL AUDITOR

M/s. Kolatkar & Dandekar (Chartered Accountants)

BANKERS

Reserve Bank of India HDFC Bank Ltd.

Maharashtra State Co-op. Bank Ltd. ICICI Bank Ltd.

Mumbai District Central Co-op. Bank Ltd. The Saraswat Co-op. Bank Ltd.


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NOTICE

Notice is hereby given that the 61st Annual General Meeting of The Greater Bombay Co-operative Bank Limited will be held on Monday, 6th August 2012 at 11.00 a.m. at the Indian Education Society, Manikrao Lotlikar Vidya Sankul, Opposite Lilavati Hospital, Bandra (West), Mumbai 400 050 to transact the following business:

AGENDA1. To read and confirm the minutes of the last Annual General Meeting held on 12th August,

2011.

2. To receive and adopt the report of Board of Directors and audited Balance Sheet and Profit & Loss account for the year ended 31st March 2012.

3. To consider and adopt the Statutory and Internal Auditors’ Report for the year 2011-2012.

4. To consider and approve the appropriation of the net profit and to declare dividend as proposed by the Board of Directors.

5. To appoint Internal Auditor for the year 2012-2013 and fix their remuneration.

6. To approve the write-off of NPA accounts against their 100% provision as certified by Statutory Auditor.

7. To consider and approve proposal for merger of Shree Siddhivinayak Nagri Sahakari Bank Ltd.

8. Any other matter (s) with the permission of the Chair.

By order of the Board of Directors

Sd/- Place : Mumbai Narendra D. Behere Date : 18th July 2012 Chief Executive Officer

NOTE1. Adjourned Annual General Meeting for want of quorum, if necessary, will be held on the

same date and place after half an hour of the notified time for such meeting.

2. Members desiring to ask any questions pertaining to the Balance Sheet, in the Annual General Meeting, may do so in writing and submit the same to the Bank on or before 30th July 2012.

3. Dividend will be paid to those members whose names appear on the Register of Members as on 31st March 2012.

4. Members may please bring their own copies of the Annual Report as distribution of copies at venue of the meeting is not being contemplated.

5. Members are also requested to bring their Member’s Identity Card issued by the Bank. Please note that persons other than the members will not be allowed to attend the meeting.

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Director’s Report 2011-12:It gives pride and pleasure to us as the Bank is celebrating Diamond Jubilee Year. The Bank had a long and successful journey in past 60 years and the Board of Directors are committed to take the Bank forward successfully in all dimensions of business in future.

On behalf of the Board of Directors, I have immense pleasure in welcoming you all to this 61st Annual General Meeting (AGM) and in presenting the Annual Report with the Audited Statements of Accounts as of 31st March 2012.

Economic and Banking Review: Economic activity in 2011-12 moderated sequentially over the quarters to take growth rate to a low

of 5.3% in quarter 4, though for the year as a whole it was 6.5%. Indian Economy progressed at 8.6% in 2010-11.

Index of Industrial Production (IIP) disappointed with a lower growth rate of 3.5% during 2011-12 as against 8.1% a year earlier.

Inflation moderated to 6.9% for the month of March 2012 from 9% for the month of March 2011. The currency market was under pressure during the year due to a slowdown in capital inflows

reflecting global uncertainty. During the year, Indian Rupee depreciated against the US dollar by more than 14%.

During April-December 2011, India’s current account deficit widened to 4% of GDP from 3.3% of GDP in April-December 2010, largely reflecting a higher trade deficit.

Money supply (M3) growth, which was 17% at the beginning of the financial year 2011-12, reflecting strong growth in time deposits, moderated during the course of the year to about 13% by end-March 2012, lower than the RBI’s indicative trajectory of 15.5%.

The 10-year benchmark yield was at 8.6% on April 13, 2012 as compared with 8% at end-March 2011.

During the year RBI restated the Bank Rate or the discount rate, from 6% to 9.5% to line up with the marginal standing facility (MSF), without changing the monetary policy stance.

During the year, RBI reduced CRR on two occasions. CRR was reduced to 5.5% from 6% from 25th January 2012 and further reduced to 4.75% from 5.5% from 9th March 2012.

As a policy measure to curb inflation, RBI increased from time to time the Repo and Reverse Repo rates both by 175 bps in the financial year 2011-12 to 8.50% and 7.50% respectively. On 17th April 2012, RBI reduced Repo and Reverse Repo rates both by 50 bps to 8% and 7% respectively.

Regulatory changes in the Banking Sector: Malegam Committee was appointed on Licensing of New Urban Co-operative Banks (UCBs). The

committee recommends encouraging new entrants to open banks; the committee also recommends that there should be segregation of the ownership of the UCB as a co-operative society from its functioning as a bank. The new organization structure shall consist of a Board of Management in addition to the Board of Directors. It also emphasized on having two umbrella organization for payments and settlements services and for providing Management and IT trainings.

Interest rate on Saving Bank was deregulated by RBI from 25th October 2011. RBI revised Urban Co-operative Bank’s individual Housing Loan limit to ̀ 70 lacs from ̀ 50 lacs and

the maximum repayment tenure was also increased to 20 years from 15 years. Central Electronic Registry was set up under “Securitization and Reconstruction of Financial Assets

and Enforcement of Security Interest Act 2002” as a measure to prevent frauds in loan cases involving multiple lending from different banks on the same property.

Urban Co-operative Banks have a Commercial and Real Estate exposure limit of 15% of their total assets. The limit of Housing loans under Priority sector was revised to ` 25 lacs from ` 20 lacs under the 5% limits of their total assets.


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Internet Banking for Urban Co-operative Bank was permitted to banks complying laid down criteria of minimum Net Worth of ` 100 crores.

During the year, RBI restricted LC discounting business to the UCBs. Representation was made by the UCBs to continue the business as it resulted in decrease in business and revenues of Urban Banks. As a result, the business of LC Discounting was permitted on 30th March 2012 to the Urban Co-operative Banks, with certain specific conditions.

Statutory Audit:The Registrar of Co-op. Societies (RCS) has appointed M/s. P. C. Ghadiali and Co. Chartered Accountants as Statutory Auditor of the Bank for the FY 2011-12. We are thankful to them for timely completion of audit and suggestions.

Financial Performance: ` In Crores

Particulars March 2011 March 2012Deposits 1217.3 1300.8Savings 340.4 338.9

Current 74.6 70.4

Term 802.4 891.5

CASA % 34.1% 31.5%Advances 813.4 629.2Commercial Advances 294.8 341.1

Others 518.6 288.1

Business Mix 2030.7 1930.0Share Capital 25.3 25.5

Net Worth 81.2 87.7

Operating Profit 16.4 14.7

Net Profit 10.8 9.2

CRAR 19.9% 17.7%

Gross NPAs 1.40% 3.81%

Net NPAs 0.84% 2.55%

Deposits increased by ` 83.5 cr at a moderate growth rate of 6.9% mainly due to increase in the term deposits.

Advances reduced by ` 184.3 cr due to cut-off of exposure of LC discounting during the entire year as per RBI’s directions.

Business mix decreased by ` 100.8 cr. Total income increased by ` 21.2 cr during the year at a growth rate of 15.4%. Total Interest income also increased by ` 22 cr at 17.7%. Total expenses also increased by ` 22.8 cr at 17.9%. Net Profit decreased by ` 1.6 cr during the year. Net Worth increased by ` 6.5 cr at a growth rate of 8%. CRAR decreased by 2.2% to 17.7% from 19.9% a year before. Gross NPAs (%) and Net NPAs (%) increased to 3.81% and 2.55% respectively as against 1.40%

and 0.84% a year before.

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Capital Adequacy Ratio:The Bank continues to have a very comfortable capital adequacy ratio of 17.7% as against the minimum prescribed level of 9% by RBI.

Dividend:The Bank is paying dividend @15% p.a. on a consistent basis. This year the Bank is proposing to pay dividend @15%. The total dividend outflow will be to the tune of ` 3.7 cr. The Bank also makes use of balance in profit in increasing its reserves and surpluses, it in turn helps bank to achieve one of the strong CRAR. Appropriations of the net profit for the financial year have been proposed as follows:

` In Crores

Particulars 2010-11 2011-12Net Profit available for appropriations 10.8 9.2Statutory Reserves 2.7 2.3

Dividend @15%* 3.7 3.7

Dividend Equalization Fund 0.1 0.01

Staff Welfare Fund 0.1 0.1

Members’ Welfare Fund 0.1 0.1

Ex-Gratia Fund 1.0 -

Building Fund 3.1 -

General Reserve - 2.0

Balance in Profit and Loss Account - 1.0

* Dividend proposed for the FY 2011-12 subject to RBI approval.

Deposit Insurance:Bank deposits up to ` 1 lac are insured by DICGC. Necessary premium has been paid up to date.

Asset Quality:The Gross and Net Non Performing Assets (NPAs) as of 31st March 2012 of the Bank are 3.81% and 2.55% respectively as against 1.40% and 0.84% as of 31st March 2011. The total recovery during the year is ` 16.11 crs including ` 7.6 crs in written-off accounts (inclusive of Overdue Interest Reserve).

The Country experienced slower GDP and IIP (Index of Industrial Production) growth. The Current Account deficit was also high during the year. As a result the credit in the economy affected. This also impacted the quality of credit. Hence NPAs in the banking sector increased. The same was applicable to the Bank.

Audit and Inspection:Bank has put in place various types of audit as per RBI guidelines:

• Concurrent Audit: All branches and Centralized Advances Cell (Bandra Reclamation), CPO (Ghatkopar), Treasury and Investment Operations (Corporate Office) and Demat Cell were covered under the concurrent audit during the year 2011-12.

• The Audit department monitors the compliance position of the audit observations and irregularities.

• Stock audit of advances of ` 25 lacs and above is in place for monitoring the large borrowal accounts.

• Internal Audit: All branches including Centralised Cells and Administrative offices are covered under Internal audit.


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• Information System (IS) Audit: All branches and Administrative offices are covered under IS audit.

• RBI Inspection: The Reserve Bank of India carried out their XXVI Statutory inspection of the Bank as of 31st March 2011 in December 2011. We have forwarded the compliance report to RBI. The Board is grateful to the RBI officials and all the auditors for their valuable guidance during the course of audit and inspection.

The Audit Committee has been guiding the operational staff and reviewing the progress in compliance. The committee meets at quarterly intervals.

Business Segments’ Review:The Bank has identified Treasury, Retail Assets and Other Banking Operations as its asset segments. The performance of all the asset segments has been satisfactory in the year under review. All the assets segments reflected profits for the year under review.

Treasury reflected Net income of ` 1 cr for the year 2011-12 as against ` 1.4 cr in 2010-11. The revenue increased by ` 13.2 cr during the year as the Treasury assets increased by ` 192.1 cr during the year. However the expenses also increased by ` 13.6 cr. Retail Asset reflected Net income of ` 0.4 cr in 2011-12 as against ` 2.6 cr in 2010-11. Assets under this segment increased by ` 24.1 cr. The revenue increased by ` 1.6 cr and expenses increased by ` 3.8 cr. Other Banking Operations reflected Net income of ` 7.8 cr in 2011-12 as against ` 6.7 cr in 2010-11. The Net income under this segment increased due to the increase in the commercial advances portfolio and income therein. Recovery in the NPAs accounts and in the written off accounts also helped in increasing the income under this segment.

New Logo:The Bank inaugurated its new logo at the hands of RBI Executive Director Shri. S. Karuppasamy on 22nd March 2012 in Mumbai.

Meaning of New Logo: New logo is a visual depiction of how the Bank is amplifying legacy strengths and combining them with new age contemporary paradigms to deliver greater value, greater services and greater prosperity to all our stake holders.

The confluence of two signs depicts Bank’s win-win operating philosophy which ensures that both Bank and its customers grow together and are having a strong bond of trust. The two arrows together also depict safe hands that guard the growing repository of resources as adopted by the square in the centre.

Diamond Deposit Scheme:As the Bank is celebrating its Diamond Jubilee year, to cater to the general public and to benefit them, the Bank has launched “Diamond Deposit Scheme” offering attractive rate of 10.6% on 660 days deposits. The Bank has also revised deposit rates on various maturities for the benefit of its depositors, general public and senior citizens.

Information Technology:The Bank gives emphasis on technological developments to provide customers the state of art banking. The Bank progressed on various front in technology in the financial year under review.

E-Lobby services: The Bank is a pioneer in introducing E-Lobby services in the banking industry. The Bank has

launched “E-Lobby services” at 16 locations. The Bank has a goal to complete all branch locations under “E-Lobby services” on or before 31st December 2012. E-Lobby offers customers 24X7 services 365 days in a year. E-Lobby is a mini-branch where customers can deposit cash, cheques, update passbook and print their account statements and pay utility bills at their convenience.

Banking Frontier, one of the well known fraternity awarded the Bank with “Best IT Adoption Runner-Up Award”.

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National Financial Switch (NFS): The Bank has migrated to National Financial Switch in the previous year enabling its customers

access of over 1 lac ATM base all over the India.

Inter-Bank Mobile Payment (IMPS): The Bank introduced ‘Intra-Bank Mobile Payments’ on 25th June 2011 and ‘Inter-Bank Mobile

Payments’ (IMPS) for its customers on 1st January 2012. Greater Bank was the 2nd Urban Co-operative Bank in the country to launch this facility. The Bank offers the facility on mobile such as Account Balance Enquiry, Mini Statement and Fund Transfers. The Bank is launching shortly Mobile and DTH Top ups through it. The Bank is also planning to launch “Rupay Cards” (debit cards) shortly.

Customer Relationship Management:The Bank is active in developing a cordial customer relationship with its customers. The Bank arranged a numerous programs for its customers during the financial year. The programs included various cultural and social activities.

Corporate Social Responsibility:The Bank assumes social responsibility as equally important as its business. The Bank always is in a lead role for extending supports to the needy people and the institutions which work for the same.

The Bank as a social responsibility conducted various programs on various occasions such as Bone Density Test, Body Analysis, BP and Diabetes Check-up, Free Eye Check up, Pranic Healing Camp and also arranged Medical Camps, etc. The Bank arranged blood donation camp at various places through which it collected more than 150 blood bottles.

The Bank celebrated various events such as Magic show and fun games for children. A seminar in association with Thomas Cook and Money Gram for a Senior Citizens Association called ‘Sobati’ was organized by our Vile-Parle branch. More than 60 silvers attended the same and were updated with this product. Picnics of senior citizens were arranged on various occasions.

The Bank always treats senior citizens with respect. The Bank has given special attention to their requirements.

Human Resource Development: Employees working towards a common, organizational goal are driving force to any organization’s success in every aspect. Human Resources now a day referred as ‘Human Capital’ as they contribute significantly to the organization’s growth.

The Bank has been taking various initiatives in order to motivate its employees by way of Training, Promotion and Recognition of the efforts put in by them towards Bank’s growth and rewarding them for the same.

Appointment of New CEO:During the financial year, Shri. Narendra D. Behere took over the charge as Chief Executive Officer of the Bank from Shri. BVR Sarma.

Prior to this, Shri. Behere was the CEO of Janakalyan Sahakari Bank Ltd. for more than nine years. Shri. Behere has an experience of around 37 years in the banking industry. He has worked with Bank of India for over 21 years in various capacities. He is a Commerce graduate and LLB and CAIIB. He was an active member of the Managing Committee of the Indian Banks’ Association, Mumbai, since 2005 and represented the Urban Co-operative Sector in IBA.

Knowledge Center:The Bank gives utmost importance to skill up-gradation and continuous improvement of its employees. To impart specialized training to the staff members to improve customer service, the Bank has set up


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its “Knowledge Center” at Vashi. Ex-CEO of the Bank, Shri. BVR Sarma has taken charge as “Head – Knowledge Center” who has keen interest and experience in providing training to banking personnel.

In addition, the Bank on a weekly basis share with staff members “Knowledge Tablet” - a power-point presentation on various topics including banking, financial, economic and general knowledge.

Corporate Governance: The Bank has a strong belief on corporate governance and transparent banking. The Bank adheres to the corporate governance best practices & principles. The Bank, on an ongoing basis tries to raise its professionalism to cater to the needs of shareholders and stakeholders. The Bank has professional management on the Board which includes senior Chartered Accountant, Former Managing Director of a subsidiary bank of SBI, Engineer, Businessmen and Industrialists who are actively involved in various social activities. The Bank’s management is compliant to all statutory guidelines and comprises of senior experienced bankers.

As a part of corporate governance, legal compliance certificate is obtained from various departments on a quarterly basis certifying compliance of all rules and regulations of various State / Central Government Authorities / Regulators.

The Bank has various committee meetings in the year 2011-12, the details are as follows:

Board Sub-committees: The Bank has formed sub-committees for decision making and reviewing the same. During the

financial year 2011-12, there were various sub-committees in place for making business decisions and to design business related plans and policies. These sub-committees included Loan, Stressed Accounts, Audit, Staff and Steering.

Executive Committees: In addition to sub-committees, the Bank has executive committees including Asset Liability

Management Committee (ALCO), Investment Committee, Expenditure Budget Committee (EBC), Credit Risk Management Committee (CRMC), Operational Risk Management Committee (ORMC), Stressed Accounts Executive Committee, Head of Departments Committee (HOD) and Information Technology committee (ITC).

There were 12 meetings of Board, 35 meetings of Sub-committees, 99 meetings of Executive Committees and 15 Performance Review (Monthly Branch Managers) meetings and 13 Relationship Managers Meeting during the year. These meetings have helped to improve the overall functioning of the Bank.

Members WelfareThe Bank continued the scheme of medical health check-up along with additional benefit of consultation at Lilavati Hospital. During the current financial year 381 members were benefited from this scheme.

As the Bank is celebrating its Diamond Jubilee year, a special Health Check up plan is proposed for all eligible members and staff at SevenHills Hospitals, Marol, Andheri (East) in lieu of existing medical health check up scheme. The special health check up plan will include comprehensive medical tests. The Special Health Check Up Plan will be applicable for all eligible members and staff of the age group of 40 years and above.

All members are requested to avail this facility to maintain good health.

Members are insured for a personal accident (death) insurance cover for ` 1 lac from New India Assurance Co. The cover is available to all eligible members who have completed one year of membership irrespective of age.

The Bank has provided financial support to 2 needy members as a special case under ‘Members Welfare Fund amounting to ` 20000/- in addition to the Medical Check up facility.

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International Year of Co-operatives (IYC): The Bank’s Diamond Jubilee year also coincides with the United Nations recognition of Year 2012 as the International Year of the Co-operatives. This is an acknowledgement by the international community that co-operatives drive the economy, respond to social change, are resilient to the global economic crisis and are serious, successful businesses creating jobs in all sectors.

The Bank represented in the functions and seminars held to celebrate the International Year of Co-operatives by District Deputy Registrar and Government of Maharashtra.

Cultural ActivitiesFounders’ Day:For every organization, Founders’ Day is an important occasion to honor its achievements and successes. As the name suggests, it is a day to mark the day our Bank was founded as well as to show appreciation towards its founding members. The celebration included felicitation of meritorious children of Bank’s members and staff who achieved success in their SSC and HSC examinations. Each child was felicitated the Ratanchand H. Baldota Scholarship award and a cash prize of ` 5000/- along with Merit Certificate. Staff members who completed 25 years of service in the Bank were also felicitated on behalf of the Union and Management.

This year, being the Diamond Jubilee Year of the Bank, a special guest was invited to perform on Founder’s Day which was held on 23rd March 2012. He was none other than the first Indian Idol of India, Mr. Abhijeet Sawant. He regaled the audience with his musical voice and sang a mix of Hindi and Marathi songs. The day ended on a pleasant note.

‘Manik Sandhya’:The Bank has always supported activities that promote Indian art and culture. Every year, the Bank sponsors the ‘Manik Sandhya’ – a classical musical concert organized by the IES Kala Vikas Mandal at Manik Sabhagriha, Bandra Reclamation. Pt. Ulhas Kashalkar who has a rich repertoire of innumerable rare and current ragas and compositions, was the performing artist this year, for ‘Manik Sandhya’ which was held on January 14, 2012. The evening was attended by classical music lovers. IES Kala Vikas Mandal thanked the Bank for its support and participation.

Acknowledgements: The Board of Directors acknowledges with deep gratitude the valuable support extended by the Commissioner of Cooperation and Registrar of Co-op Societies, Pune, Registrars of Mumbai Offices, RBI Authorities from Central and Mumbai Regional Offices, Shri. Anandrao Adsul, Member of Parliament, Authorities from Maharashtra State Co-op Banks’ Association, Maharashtra Urban Co-op Banks’ Federation, Brihanmumbai Nagari Sahakari Banks’ Association, NAFCUB – Delhi, Indian Banks’ Association, MDCC and MSC Bank, Co-op Bank Employees’ Union and the electronic and print media. Last but not the least; we are thankful to all the staff members for their support and co-operation.

On behalf of the Board of Directors

Sd/-

Narendrakumar A. BaldotaChairman

Date: 10th July 2012


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POSITION AT A GLANCE

Name of The Bank : The Greater Bombay Co-Op. Bank Ltd. (Scheduled Bank)

Regd. Office Address : G.B.C.B.House, 89, Bhuleshwar, Mumbai 400 002

Corp. Office Address : Baldota Bhavan, 117, M.K.Marg, Churchgate, Mumbai 400 020

Date of Registration : 15.11.1952

Date & No. of RBI Licence : UBD/MH/867/Dated 06.10.1987

Jurisdiction : State of Maharashtra

(` in lacs)

Items As on 31st March 2012

No. of branches 22

Membership Regular 25,005

Nominal 2,287

Paid-up Share Capital 2,513.89

Share Application Money 33.25

Total Reserves &Funds 6,779.26

Deposits Savings 33,893.44

Current 7,042.14

Term 89,143.26

Total 130,078.84

Advances Secured 62,920.31

Unsecured -

Total 62,920.31

Advances to Priority Sector 50.70%

Advances to Weaker Sections 2.76%

Borrowings M.S.C.Bank 6,470.01

Others – FDOD & LTDs 2,993.99

Investments 71,099.23

Net NPAs 2.55%

Profit for the year 920.04

Total Staff Officers 162

Clerks 244

Sub-Staff 60

Total 466

Working Capital 151,982.85

Audit class “A”

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As AtCAPITAL & LIABILITIES

As At 31.03.2011

` 31.03.2012

` 31.03.2012

`Share Capital

1000000000.00 i) Authorised Capital 1000000000.0040000000 (P.Y. 40000000) Shares of ` 25/- each

ii) Issued and Subscribed250813800.00 1,00,55,564(P.Y. 1,00,32,552) Shares of ` 25/- each 251389100.00

2199840.00 iii) Share Application Money 3324768.00Reserve Funds and Other Funds

391474310.38 i) Statutory Reserve 417104227.5881019670.37 ii) Building Fund 81019670.3722573208.33 iii) Dividend Equalisation Fund 22625008.3346003885.62 iv) Bad and Doubtful Fund Reserve 81262526.6210000000.00 v) Ex Gratia Fund 0.00

6928135.30 vi) Members Welfare Fund 7315135.3012007300.87 vii) General Reserve 32007300.8748072919.00 viii) Contingent Provision for Standard Assets 32795100.00

461378.00 ix) Diminution Reserve Fund 672632.0022624134.96 x) Investment Fluctuation Reserve 3124134.96

641164942.83 Total 677925736.03Deposit Accounts

2282524158.35 i) Fixed Deposits 2689121123.931983565207.34 a) Individuals 2292719266.95

166362767.08 b) Societies 253410555.67132596183.93 c) Others 142991301.31

3397285541.80 ii) Saving Deposits 3383630739.813197080570.89 a) Individuals 3227693253.36200204970.91 b) Societies 155815066.22

0.00 c) Others 122420.23745589789.66 iii) Current Deposits 704214217.0635731852.23 a) Individuals 40208750.883008330.23 b) Societies 932046.43

706849607.20 c) Others 663073419.75201330586.45 iv) Monthly Recurring Deposits 220213885.48176599624.49 a) Individuals 199266711.61

21493103.84 b) Societies 10944889.363237858.12 c) Others 10002284.51

5458941789.82 v) Reinvestment Benefit Deposits 5935814420.754624569054.80 a) Individuals 4945785187.54652614687.81 b) Societies 737997211.22181758047.21 c) Others 252032021.99

6294254.00 vi) Madhukosh Deposits 5713204.0052523353.92 vii) Overdue Term Deposits 51582714.4728887260.00 viii) Initial Deposit 17593356.00

12173376734.00 Total 13007883661.501438786302.20 Borrowings 946399901.00

0.00 i) OD from UBI 49999500.00640000000.00 ii) Refinance from MSC (Secured against Non

Overdue Standard Assets).647001072.00

249400000.00 iii) Long Term (Subordinate) Deposit 249399329.00549386302.20 iv) CBLO (Secured against Government Securities) 0.00

26813992.00 Bills for Collection (As per Contra) 25009115.0014533155611.03 Total Carried Forward 14911932281.53

BALANCE SHEET AS


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As AtPROPERTY & ASSETS

As At 31.03.2011

` 31.03.2012

` 31.03.2012

`Cash and Bank Balances

49730168.00 i) Cash on Hand 49926086.50981893267.33 ii) Balance with RBI 921821497.22

14437102.24 iii) Balances in Current Accounts with Other Banks 157557688.081046060537.57 Total 1129305271.80

Investments In4028508013.18 i) Central and State Government Securities 4347829595.58

(Book Value : ` 4347829595.58, P. Y. ` 4028508013.18)(Face Value : ` 4272500000.00, P. Y. ` 3972500000.00)(Market Value : ` 3921909750.00, P.Y. ` 3703178000.00)(Pledged with CCIL for RTGS transaction)

90666255.37 ii) Bonds of Public Sector Undertakings 90248235.38(Book Value ` 90248235.38, P. Y. ` 90666255.37)(Face Value ` 90000000.00, P. Y. ` 90400000.00)(Market Value ` 90248235.38, P. Y. ` 90666255.37)

4119174268.55 4438077830.96iii) Shares of Other Co-operative Institution

10100000.00 a) M.S.C. Bank Ltd. 10100000.0016000000.00 b) M.D.C.C. Bank Ltd. 16000000.00

3500.00 c) Housing Societies 3750.0037753185.35 iii) Shares of Companies Approved by RBI 37753185.35

iv) Other Approved Securities1) Fixed Deposits

10000000.00 a) M.S.C. Bank 10000000.000.00 b) HDFC Bank 170000000.000.00 c) Canara Bank 420000000.00

21888266.00 d) Saraswat Bank 21888266.0050000000.00 e) Dhanlaxmi Bank 0.00

300000000.00 f) Punjab National Bank 425247549.00250000000.00 g) ICICI Bank 350000000.00

500000.00 h) Bank of India 500000.000.00 i) Corporation Bank 400000000.000.00 j) Union Bank of India 300000000.000.00 k) Yes Bank 100000000.00

(Pledged for securing funded/non funded facilities)13928351.84 2) Gold ETF 10352773.40

349355013.88 3) Statutory/Other Reserve Fund Investments 400000000.00Central and State Government Securities/M.D.C.C. Bank

5178702585.62 Total 7109923354.71Advances

5392499337.07 i) Short Term Loans 2514359187.37Cash Credit, Overdraft, Bill Discounted of which secured against

a) Tangible Securities : ` 2514359187.37, P.Y. ` 5392499337.07

b) Personal Sureities : ` Nil, P.Y. ` Nilc) Clean ` Nil, P.Y. ` Nild) NPAs ` 157347195.36, P.Y. ` 19186791.11

1669800742.97 ii) Medium Term Loans of which secured against

2160982062.25

a) Tangible Securities ` 2154210513.78 P.Y. ` 1660130208.07

b) Personal Sureities ` 5741330.50, P.Y. ` 9670534.90c) Clean ` Nil, P.Y. ` Nild) NPAs ` 35605849.03, P.Y. ` 66622052.63

6224763123.19 Total Carried Forward 8239228626.51

AT 31st MARCH 2012

14

BALANCE SHEET ASAs At

CAPITAL & LIABILITIESAs At

31.03.2011 `

31.03.2012 `

31.03.2012 `

14533155611.03 Total Brought Forward 14911932281.53

28588610.55 Overdue Interest Reserve (Contra) 41467730.9628588610.55

Current Liabilities and Provisions44014660.16 i) Interest Payable on Deposits and Borrowings 49869506.12

205497447.95 ii) Other Liabilities (Schedule 1) 218134920.763929198.16 iii) Staff Welfare Fund 4257198.16

26593508.00 iv) Staff PL Encashment Fund 29320470.00280034814.27 Total 301582095.04

Profit and Loss Account74689477.15 Profit for the Previous Year 0.00

107583470.37 Add: Current Year Profit 92003848.16Less : Appropriation out of Profit

45568300.00 i) Statutory Reserve Fund 23001000.0071336800.00 ii) Dividend @ 15% 37448200.0010000000.00 iii) Exgratia Fund 0.0021870277.15 iv) Investment Fluctuation Reserve 0.00

831900.00 v) Dividend Equilisation Reserve 51800.00469000.00 vi) Staff Welfare Fund 466000.00

1254000.00 vii) Members Welfare Fund 1257000.0030942670.37 viii) Building Fund 0.00

0.00 ix) General Reserve Fund 20000000.000.00 Profit Carried Forward 9779848.16

Contingent Liabilities : 62614365.40 i) Guarantees issued 55419411.90

8775518.00 ii) Inland Letter of Credit 0.0071389883.40 Total 55419411.90

14841779035.85 TOTAL 15264761955.69

SIGNIFICANT ACCOUNTING POLICIES AND NOTES ON ACCOUNTS FORM PART OF ACCOUNTS. (Schedule 4)

As per our report of even date As per our report of even date N. D. Behere N. A. Baldota S. B. ChhajedFor M/s. P. C. Ghadiali & Co For M/s. Kolatkar & Dandekar Chief Executive Officer Chairman Vice ChairmanChartered Accountants Chartered Accountants

DIRECTORS

CA. R. T. Doshi CA. S. K. Dandekar M. P. Baldota A. B. Vakharia A. P. Ahire P. P. Golecha S. R. BaldotaMem No 013458 Mem No 015113(Statutory Auditor) (Internal Auditor) P. J. Mehta M. H. Ratti S. N. Baldota S. M. Paraande N. B. Rege P. R. ChavanFirm Reg No. 103132W Firm Reg No. 125263W

Place: Mumbai Place: MumbaiDate: 10th July, 2012. Date: 10th July, 2012.


15



DIRECTORS



AT 31st MARCH 2012As At

PROPERTY & ASSETSAs At

31.03.2011 `

31.03.2012 `

31.03.2012 `

6224763123.19 Total Brought Forward 8239228626.511071379750.72 iii) Long Term Loans 1616689622.81

of which secured against a) Tangible Securities: ` 1616689622.81

P.Y. ` 1071379750.72b) Personal Sureities: ` Nil, P.Y. ` Nilc) Clean ` Nil, P.Y. ` Nild) NPAs ` 46936266.66, P.Y. ` 28170685.94

8133679830.76 Total 6292030872.43Interest Receivable on

97518308.47 i) Investments 173096114.1227476188.77 ii) Loans and Advances 67975427.5928588610.55 iii) Overdue Interest Reserve (Contra) 41467730.96

153583107.79 Total 282539272.6726813992.00 Bills for Collection (As per Contra) 25009115.00

Fixed Assets (Schedule 3)23301209.68 i) Land and Building 42127416.00

744200.00 ii) Land at Lonavala 744200.001252077.90 iii) Members Holiday Home at Lonavala 1126869.004408337.52 iv) Civil Work 13973427.00

23729878.83 v) Furniture and Fixtures 25744385.002502926.39 vi) Vehicles 3461430.003620596.88 vii) Air Conditioners 3889801.008274587.61 viii) Safe Deposit Lockers 9039780.003707925.54 ix) Computer Peripherals 8875719.004220767.42 x) Office Equipment 5503007.003901722.93 xi) ATM Machines 3316463.00

0.00 xii) Capital Work in Progress 514134.5079664230.70 118316631.50

193841064.57 Other Assets (Schedule 2) 123515568.386600000.00 Margin with CCIL 6600000.001181632.49 Non Banking Assets Acquired in Satisfaction of Claims 158252417.401155493.55 Computer Software 2252031.00

20496560.80 Deferred Revenue Expenditure 17017420.8014841779035.85 TOTAL 15264761955.69

16



DIRECTORS



PROFIT AND LOSS ACCOUNT FOR For the

Previous year 31.03.2011

`

EXPENDITURE For the Current year 31.03.2012

` 844259242.36 To Interest / Discount on Deposits & Borrowings 992083558.62

211652888.40 To Salaries, Allowances, PF Contribution & Gratuity etc. 227414661.00

33625.00 To Allowances To Directors 31875.00

58612869.07 To Rent, Taxes, Insurance, Lighting, Water Charges 60548020.60

6500340.58 To Postage, Telegram & Telephone Charges 6718917.52

13587867.99 To Stationery, Printing & Advertisement Charges 39862402.76

3222468.00 To Audit Fees 4126591.00

6878970.65 To Legal & Other Professional Charges 6315627.34

5737299.89 To Repairs & Maintainance Charges 7436478.27

10338797.96 To Computer Maintainance Charges 10649507.70

14380583.00 To Depreciation on Assets 19976133.26

1806040.00 To Amortisation on Computer Software 1512388.55

11781690.00 To DICGC Insurance premium 11828542.00

30000.00 To Contribution to Education Fund 30000.00

25736510.65 To Sundry Expenses 36905014.83

301920.55 To Loss on Sale of Fixed Assets 21124.22

12676.00 To Value Added Tax 10454.00

Provisions and Amortizations29654672.37 To Amortisation of securities 29061151.47

13531333.30 To Provision for Bad and Doubtful Debts Fund 35300000.00

322331.48 To Provision for Diminution in Current Assets 211254.00

13598909.00 To Contingent Provision for Std. Assets 9795100.00

107583470.37 Net Profit Before Tax 92003848.160.00 To Provision for Taxation 0.00

107583470.37 Net Profit After Tax 92003848.161379564506.62 TOTAL 1591842650.30


17



DIRECTORS



THE YEAR ENDED 31st MARCH, 2012 For the

Previous year 31.03.2011

`

INCOME For the Current year 31.03.2012

` By Interest

826075377.24 a) On Loans & Advances 878007303.15

377121583.70 b) On Investments 507268307.61

2932777.00 By Dividend on Investment in Shares 1907477.00

21947924.41 By Commission, Exchange & Brokerage 21076365.68

32507297.79 By Profit on Sale of Investments (Net) 15381577.41

38714791.22 By Recoveries in written off Accounts 76233015.07

Other Receipts

19363087.34 By Miscellaneous Receipts 13634901.69

5474341.39 By Demat Services (Net) 3850598.07

16915718.63 By Incidental Charges 14189496.31

25682462.58 By Processing Charges 26152106.00

11518719.12 By S. D. V. Locker Rent 14641502.31

1310426.20 By Excess Provision Written Back IDR 0.00

0.00 By Transfer from Investment Fluctuation Reserves 19500000.00

1379564506.62 TOTAL 1591842650.30

18

SCHEDULE 1 - OTHER LIABILITIESAmount in `

Sr No Particulars 31.03.12 31.03.11

1 Bonus payable to staff 157549.00 159777.00

2 Audit fees payable 2711733.00 2575779.00

3 Difference in Clearing Payable 0.00 786.07

4 Outstanding Liability 45992304.14 49215605.30

5 Sundry Creditors 16987967.02 12642388.35

6 Dividend payable 07-08 0.00 1626753.00




10 Education Fund Payable 30000.00 30000.00

11 SDVL Rent received in advance 1457754.52 1248673.83

12 Interest received in advance on Bills & LC 1362279.20 31135825.00

13 Payslip Payable 71004851.09 44416506.20

14 Others 72485370.59 58751946.10

TOTAL 218134920.76 205497447.95

SCHEDULE 2 - OTHER ASSETSAmount in `

Sr No Particulars 31.03.12 31.03.11

1 Commision Receivable 1746991.67 1813288.48

2 Safe Deposit Locker Rent Receivable 1148336.00 493244.00

3 Income Tax Paid Receivable 9625265.47 24081591.50

4 Deposits with Govt. & Other Authorities 15541800.42 14601387.42

5 Prepaid Expenses 1348717.20 1026492.77

6 Stamps 20195267.10 12199602.00

7 Stock of Printing & Stationery 1060822.00 1145733.00

8 Others 72848368.52 138479725.40

TOTAL 123515568.38 193841064.57


19

SC

HE

DU

LE 3

- FI

xE

D A

SS

ETS

Am

ount

in `

Parti

cula

rsRa

te (%

)GR

OSS

BLOC

KDE

PREC

IATI

ONNE

T BL

OCK

Open

ing

Balan

ce as

at

01.04

.11

Addit

ions d

uring

the y

ear

Delet

ion /

adjus

tmen

t du

ring t

he ye

ar

Clos

ing

Balan

ce as

at

31.03

.12

Upto

31

.03.11

For t

he

Curre

nt Ye

arOn

Dele

tion /

ad

justm

ent

Upto

31

.03.12

WDV

as

at

31.03

.12

WDV

as

at

31.03

.114

12

3Be

fore 3

0.09.1

1Af

ter 30

.09.11

56

78

910

11 (6

-10)

12 (3

-7)

Land

& B

uildin

g10

59,40

9,327

.70 23

,507,0

32.49

– –

82,91

6,360

.19 36

,108,1

18.02

4,68

0,826

.17 –

40,78

8,944

.19 42

,127,4

16.00

23,30

1,209

.68

Civil

Wor

k10

6,40

2,275

.94 7,

563,7

34.67

3,36

6,909

.82 –

17,33

2,920

.43 1,

993,9

38.42

1,36

5,553

.86 –

3,35

9,492

.28 13

,973,4

27.00

4,40

8,337

.52

Furn

iture

& F

ixtur

e10

63,91

0,164

.11 3,

686,2

95.00

1,12

6,135

.67 –

68,72

2,594

.78 40

,180,2

85.28

2,79

7,924

.00 –

42,97

8,209

.28 25

,744,3

85.00

23,72

9,878

.83

Vehic

le15

4,41

1,549

.25 –

1,44

2,100

.00 –

5,85

3,649

.25 1,

908,6

22.86

483,5

96.39

– 2,

392,2

19.25

3,46

1,430

.00 2,

502,9

26.39

Air C

ondit

ion15

11,97

6,379

.81 63

5,926

.00 39

6,771

.00 1,

125,6

23.00

11,88

3,453

.81 8,

355,7

82.93

651,4

25.88

1,01

3,556

.00 7,

993,6

52.81

3,88

9,801

.00 3,

620,5

96.88

Safe

Depo

sit Va

ult10

19,29

0,483

.83 40

9,713

.00 1,

288,3

30.00

– 20

,988,5

26.83

11,01

5,896

.22 93

2,850

.61 –

11,94

8,746

.83 9,

039,7

80.00

8,27

4,587

.61

Comp

uter &

Pe

riphe

rals

33.33

104,7

23,23

6.41

6,31

5,667

.44 4,

393,1

68.22

129,8

00.00

115,3

02,27

2.07

101,0

15,31

0.87

5,54

1,042

.20 12

9,800

.0010

6,426

,553.0

7 8,

875,7

19.00

3,70

7,925

.54

Offic

e Equ

ipmen

t33

.33 10

,008,2

62.00

1,20

4,410

.90 2,

890,2

92.00

172,2

08.00

13,93

0,756

.90 5,

787,4

94.58

2,81

2,445

.32 17

2,190

.00 8,

427,7

49.90

5,50

3,007

.00 4,

220,7

67.42

Memb

er's

Holid

ay

Home

10 4,

688,2

97.60

– –

– 4,

688,2

97.60

3,43

6,219

.70 12

5,208

.90 –

3,56

1,428

.60 1,

126,8

69.00

1,25

2,077

.90

Land

at Lo

nava

la0

744,2

00.00

– –

– 74

4,200

.00 –

– –

– 74

4,200

.00 74

4,200

.00

ATM

15 14

,953,5

48.00

– –

– 14

,953,5

48.00

11,05

1,825

.07 58

5,259

.93 –

11,63

7,085

.00 3,

316,4

63.00

3,90

1,722

.93

Total

300,5

17,72

4.65

43,32

2,779

.50 14

,903,7

06.71

1,42

7,631

.0035

7,316

,579.8

622

0,853

,493.9

5 19

,976,1

33.26

1,31

5,546

.0023

9,514

,081.2

111

7,802

,497.0

0 79

,664,2

30.70

Prev

ious y

ear

288,6

34,87

3.78

4,33

7,022

.72 15

,877,4

28.58

8,33

1,600

.4330

0,517

,724.6

521

1,839

,200.5

4 14

,380,5

83.00

5,36

6,289

.5922

0,853

,493.9

5 79

,664,2

30.70

76,79

5,673

.19

20

SCHEDULE 4SIGNIFICANT ACCOUNTING POLICIES AND NOTES FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 31ST MARCH 2012

A. SIGNIFICANT ACCCOUNTING POLICIES:

1. Accounting Convention:

The financial statements are prepared under the historical cost convention & on a going concern basis. They conform to Generally Accepted Accounting Principles (GAAP) in India, which comprise applicable Statutory Provisions, Reserve Bank of India (RBI) guidelines, Accounting Standards issued by The Institute of Chartered Accountants of India (ICAI), and the practices prevalent in the Cooperative Banks in India.

2. Use of Estimates

The preparation of financial statements requires the management to make estimates and assumptions considered in the reported amount of assets and liabilities (including contingent liabilities) as of the date of the financial statements and the reported income and expenses during the reporting period. Management believes that the estimates used in the preparation of the financial statements are prudent and reasonable. Future results could differ from these estimates. Difference between the actual results and estimates are recognised in the period in which the results are known/materialised.

3. Revenue Recognition:

Income and Expenditure are accounted on accrual basis except as stated below:

a. The following are accounted for on cash basis:

i. Commission on Guarantees.

ii. Ex-Gratia to Staff

b. The following items of income are recognized on realization basis as per the prudential norms on Income Recognition and Asset Classification issued by RBI:

i. Interest income on Non Performing Advances

ii. Interest on Non Performing Investments

4 Loans/Advances and Provisions thereof:

4.1 Advances are shown net of unrealized interest on Non Performing Assets (NPAs).

4.2 AllLoansandAdvancesareclassifiedintoPerformingorNon-PerformingAssetsbasedontheguidelinesissuedbyRBI.NPAsarefurtherclassifiedas“Sub-Standard”,“DoubtfulAssets”and“LossAssets”.

4.3 A general provision on standard assets except Loans against Fixed Deposits, NSC, LIC, etc. is made at the following rates as per the RBI guidelines:

a. Direct Advances to SME and Agricultural Sector 0.25%

b. Advances to CRE (Commercial Real Estate) Sector 1.00%

c. All other Standard Assets 0.40%


21

4.4 Provisions are made on all outstanding Non Performing Assets as under:

S.No. Classification Percentagea. Substandard Assets - 10%b. Doubtful Assets- i. Unsecured portion 100% ii. Secured portion:

Period for which the assets has been Considered as doubtful Up to one year 20% One to three years 30% More than three years 100%c. Loss Assets 100%

4.5 Unrealized Interest in respect of NPAs is credited separately to “Overdue InterestReserveAccount.”

4.6 The Classification ofAdvances in to Short Term, Medium Term and Long Term areconsideredonthebasisofSanctionedTerm.

5 Investments:

5.1 TheBankhascategorizedtheInvestmentsinfollowingthreecategoriesinaccordancewiththeRBIguidelinesapplicabletoUrbanCo-operativeBanks.

a. Held to Maturity

b. Held for Trading

c. Available for Sale

5.2 Investmentshavebeenclassifiedunder5groupsasrequiredunderRBIguidelines a. Government securities,

b. Other Approved Securities,

c. Shares,

d. Bonds of PSUs &

e. Others

5.3 Investments under “Held toMaturity” category have been valued at acquisition cost.Premium,ifany,onsuchinvestmentsisamortizedovertheresiduallifeoftheparticularinvestment.

5.4 Investmentsunder“HeldforTrading”categoryhavebeenmarkedtomarketonthebasisofguidelinesissuedbytheRBI.Whilenetdepreciation,ifany,undereachclassificationhasbeenprovidedfor,netappreciation,ifany,hasbeenignored.

5.5 Investments under “Available for Sale” category have been marked to market on the basis of guidelines issued by the RBI. While net depreciation, if any, under each classification has been provided for, net appreciation, if any, has been ignored.

5.6 Market value in the case of State Government and Other Securities, for which quotes are not available are determined on the basis of the “Yield to Maturity” indicated by the Primary

22

Dealers Association of India (PDAI) jointly with Fixed Income and Money Market Derivatives Association of India (FIMMDA).

5.7 An investment is classified as “Held to Maturity”, “Available for Sale”, “Held for Trading”, at the time of purchase and any subsequent shifting amongst categories is done in conformity with the regulatory guidelines.

5.8 Non-Performing Non-SLR Investments are recognized as per RBI guidelines and provisions are made as per RBI norms applicable to NPAs.

5.9 During the year the Bank has changed policy for recognition of profit and loss on sale of investment from Least Cost basis to First In First Out (FIFO) basis. The impact of the same on profit and loss account is reduction of gain by ` 4.5 Lacs .

6. Fixed Assets and Depreciation:6.1 Fixed Assets are stated at historical cost less accumulated depreciation in accordance with

AS 6 and AS 10 issued by Institute of Chartered Accountants of India (ICAI). Fixed Assets include incidental expenses incurred on acquisition and installation of the assets.

6.2. Depreciation on Fixed Assets (except Computers and Office Equipments) is provided for on the Written Down Value Method at the rates prescribed by the Management as under:

Type of Asset RateBuildings 10%Civil Work 10%Furniture & Fixtures 10%Air Conditioner 15%Motor Vehicles 15%Member Holiday Home 10%Automated Teller Machines (ATMs) 15%Safe Deposit Vaults 10%

Depreciation on Computers (including E-Lobby Machines w.e.f. F.Y. 2011 -12 ) is provided @ 33.33% on Straight Line Method (SLM) as per the RBI Circular No. UBD NO.BPD.CIR.7/09.50.00 dated 5th August 2003. Depreciation on Office Equipments which include all general office equipments have been charged @ 33.33% on Straight Line Basis based on the managements estimate of useful life of the assets.

6.3 Depreciation on fixed assets purchased during the year is charged for the entire year if the asset is purchased or retained for 180 days or more, otherwise depreciation is charged @ 50% of the normal rate. Depreciation is charged on fixed assets up to the date of sale when the assets are sold during the year.

6.4 No depreciation is charged on Non-Banking Assets acquired in satisfaction of claims.

7. Impairment of Assets (Accounting Standard 28)Assets are reviewed for impairment whenever events or changes in circumstances warrant that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future net discounted cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognised is measured by the amount by which the carrying amount of the asset exceeds the fair value of the asset.

The New Look

Shri. S. Karuppasamy

Executive Director,

Reserve Bank of India,

unveiling

Greater Bank's

NEW LOGO

on

22nd March 2012

New Ventures...

Noted and popular playwright Shri. S. N. Navre, at the Dombivali branch and

'E-Lobby 24 x 7' inauguration

Seated (L-R) : Shri. BVR Sarma, Shri. Narendrakumar A. Baldota,

Shri. Satish Lotlikar and Shri. Shantilal Chhajed

Shri A. P Hota, Chairman, NPCI, during Versova branch 'E-Lobby 24 x 7' inauguration and

official launch of Inter Bank Mobile Payment Service (IMPS)

Nurturing the Future...

Shri. Ratanchand H. Baldota Scholarship being awarded to

meritorious children of Members and staff,

by Shri. Narendrakumar A. Baldota, Chairman, Greater Bank, on Founder’s Day

Corporate Social Responsibility

Blood Donation Drive

organized by

Greater Bank staff at

Churchgate Station.

Also seen here is the

Chief Executive Officer,

Shri. Narendra D. Behere

felicitating a donor.

103 bottles of blood

were collected that day.

Greater Bank staff distributing

study kits to needy children in

collaboration with

Umang Foundation


23

8. Taxation:-

8.1 Income tax expenses comprise current tax and deferred tax.

8.2 Deferred tax asset and liabilities are recognised for the future tax consequences of timing differences, subject to the consideration of prudence. Deferred tax assets and liabilities are measured using the tax rate enacted or substantively enacted by the balance sheet date. The carrying amount of deferred tax asset / liability is reviewed at each balance sheet date.

8.3 Deferred tax assets on account of other timing differences are recognised only to the extent there is a reasonable certainty of its realization.

9. Employee Benefits:

9.1 The undiscounted amount of short-term employee benefits, such as medical benefits, etc.which are expected to be paid in exchange for the services rendered by employees are recognised during the period when the employee renders the service.

9.2 Contributions towards Provident Fund in terms of the Provident Fund Schemes are charged to Profit and Loss Account on accrual basis.

9.3 The liability for gratuity is determined on the basis of actuarial valuations carried out at the year end and the incremental liability is provided for by charging the same to the Profit and Loss Account. Additional liability due to enhancement in gratuity limits following the amendment to Payment of Gratuity Act 1972, is deferred over a period of five years beginning with the financial year ended March 31, 2011 in accordance with RBI circular No UBD.BPD.(PCB)CIR.No.49/09.14.000/2010-11 dated May 24, 2011.

9.4 The liability for Leave Encashment is determined on the basis of actuarial valuations carried out at the year-end and provided for by charging the same to the Profit and Loss Account.

9.5 Ex- Gratia is accounted for on Cash Basis.

10. Intangible Asset:

The cost of Computer Software is capitalized under the head “Intangible Assets” and is amortized over a period of 3 years ( i.e. @ 33.33% on SLM) from the year of capitalization as per RBI guidelines.

Amortization on Computer Software purchased during the year is considered for the entire year if the Computer Software is purchased or retained for 180 days or more, otherwise amortized @ 50% of the above rate.

11. Events occurring after Balance Sheet Date:

While classifying account as NPA, due regard is given to the events occurring after the Balance Sheet date, like closure of a NPA account, renewal of accounts or substantial recovery in the account which has the effect of altering the status of the account. Other than these, there is no event after the Balance Sheet date which may be deemed to have any material impact on the financial statements.

12. Reserve fund and Other Reserves:

Dividends remaining unclaimed over 3 years and sundry deposits/payslips/demand drafts/excess cash etc. remaining unclaimed over 2 years are credited directly to the Statutory Reserve Fund.

24

13. Payment under Voluntary Retirement Scheme (VRS):

In accordance with the RBI guidelines, the payment under VRS is treated as Deferred Revenue Expenditure to be amortized over the period of five years.

14. Prior Period Items:

Prior period items, if any, are disclosed separately in the Profit and Loss Account.

15. Provisions, Contingent Liabilities and Contingent Assets:

In conformity with AS 29, “Provisions, Contingent Liabilities and Contingent Assets”, issued by the Institute of Chartered Accountants of India, the Bank recognises provisions only when it has a present obligation as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and when a reliable estimate of the amount of the obligation can be made.

B NOTES TO ACCOUNTS

1 During the year 2004-2005 the Registrar of Cooperative Societies (RCS), Pune in response to an application by the Bank, had permitted the Bank to transfer an amount of `1750 lacs from Building Reserve Fund (`1000 lacs) and General Reserve (`750 lacs) to IDR with the condition that the same should be treated as loan and the said amount should be made good in five years. Further, RCS, Pune vide their letter dated 26.12.2005 had permitted the bank to replenish the fund subject to sufficiency of the profits during the period. Till date these funds are not replenished and the five year period has expired on 31.03.2010. The bank has built up other reserves amounting to ` 2221 Lacs (including appropriations of current year) which are more relevant to strengthen the Bank’s net worth during the period of last 7 years. Moreover, in addition to said reserves the Bank has also built up General Reserve Fund by ` 279 Lacs and Building Reserve fund by ` 309 lacs.

In view of the same the Bank in its previous Annual General Meeting has passed a resolution for not replenishing the said reserves. The Bank, however, has written to the RCS for waiver of requirement of building up Building Reserve Fund & General Reserve Fund and reply is awaited.

2 Details of Intangible Assets (Software Expenses) in accordance with Accounting Standard 26 - Intangible Assets issued by Institute of Chartered Accountants of India are as under:

(` in lacs)

Particulars 2011-12 2010-11Carrying amount at the beginning of the year 12 22Add: Additions during the year 26 8Sub-Total 38 30Less: Amortisation during the year 15 18Carrying amount at the end of the year 23 12

3 In Core Banking System (CBS), recovery made by branch by mode of cash and ECS towards NPA accounts is directly appropriated to principal instead of Interest income. While such rectification has been done for the Financial Year 2011-12, it is to be done in respect of the period from Nov 2009 to March 2011.


25

4 In past, the bank had been following the practice of accounting for the appropriation of the profits of the respective year in the subsequent financial year after their approval at the Annual General Meeting (AGM). The effects of these appropriations were thus included in the Financial Statements of the next financial year. To provide the shareholders a true and fair value of Reserves, other funds and liabilities as on the date of Balance Sheet, the Bank has changed the previous practice of disclosure and given effect to the Funds to the appropriation of profits for the current year in the financial statements for the year ended March 31, 2012 itself, subject to approval at the AGM.

Proposed Appropriations:Sr No Particulars Amount in `1 Statutory Reserve Fund 23,001,000.002 Dividend (@ 15% on pro-rata basis) 37,448,200.003 Dividend Equalisation Fund 51,800.004 Staff Welfare Fund 466,000.005 Members Welfare Fund 1,257,000.006 General Reserve Fund 20,000,000.007 Balance in Profit & Loss Account 9,779,848.16

TOTAL 9,20,03,848.16

For the sake of comparison, the appropriation of profits for the year ended March 31, 2011 (which was duly approved by the shareholders in the 60th AGM held on 12th August, 2011) have been reported in the previous year’s column of the Financial Statements for the current year, as per the revised practice, through appropriate regroupings. The regrouped figures as on March 31, 2011, vis-à-vis reported figures in previous year’s Balance Sheet as on March 31, 2011 are shown below –

Sr No

Particulars Figures as per Balance Sheet as on

March 31, 2011

Appropriations out of profit for the year

ended March 31, 2011

Regrouped Figures as on

March 31, 2011

1 Statutory Reserve 364,578,410.38 26,895,900.00 391,474,310.38

2 Building Fund 50,077,000.00 30,942,670.37 81,019,670.37

3 Dividend Equalisation Fund 21,741,308.33 831,900.00 22,573,208.33

4 Ex Gratia Fund 0.00 10,000,000.00 10,000,000.00

5 Members Welfare Fund 5,674,135.30 1,254,000.00 6,928,135.30

6 Staff Welfare Fund 3,460,198.16 469,000.00 3,929,198.16

5 The profit before tax of `9.20 Crores includes credit of `1.95 Crores towards Investment Fluctuation Reserve which is no longer required. Reserve of such nature, in past were created by way of Appropriation of profit after tax. Therefore reversal of excess provision from Investment Fluctuation Reserve should have been routed through Appropriation and should not have formed part of Profit Before Tax for the year. Accordingly the Profit Before Tax is over stated by `1.95 Crores. Consequently, appropriation of profit by way of transfer to Statutory and Other Free Reserves is in excess to such extent.

26

6 As per Statutory requirements, the Bank has to make provisions on NPA as per rates prescribed by RBI depending upon the classification of advances into sub standards/doubtful/loss Assets. The Bank has made provision for the same during the year which is in excess by ` 0.42 cr. Accordingly, the profit before tax is under stated by the said amount and net NPA is also under stated by above amount.

7 Related Party Disclosures:

The Bank is a Co-operative Society under The Maharashtra Co-operative Societies Act, 1960 and there are no related parties requiring a disclosure under Accounting Standard -18 (AS-18) issued by The Institute of Chartered Accountants of India, other than one Key Management Personnel, viz. Shri. BVR Sarma, Chief Executive Officer of the Bank. However in terms of RBI circular dated 29th March, 2003, he being single party coming under the category, no further details thereon need to be disclosed.

8. In terms of approval received from RCS & RBI in December, 2008, the Bank has been allowed to raise Long Term Deposits (LTDs) with a view to augmenting Tier II Capital. Accordingly the Bank raised LTD’s aggregating ` 2494 lacs. The details of the issue are as under:

a. Size of the issue – ` 2500 lacs.

b. Minimum investment ` 1 lac and maximum `100 lacs per party.

c. Tenure - 10 years

d. Interest - 12% (payable half yearly)

e. Call option to be exercised anytime after 5 years.

9. The Non Banking Assets acquired in satisfaction of claims are segregated from banks own fixed assets and no depreciation is charged on the same. The said property is in the possession of borrower as trustee on rental basis.

10. There have been no fines imposed on the Bank by Reserve Bank of India during the year.

11. As a matter of prudence, deferred tax assets arising on account of brought forward losses, Bad and Doubtful Fund (BDDF) and other items have not been recognised.

12. Segment Reporting (Accounting Standard 17)

12.1 Primary Segment(` in lacs)

Particulars Treasury Retail Banking

Other Banking Operations

Total As on March 31, 2012

RevenueSegment Revenue 5440.57 2575.17 7902.68 15918.42

Result 102.77 33.66 783.61 920.04

Unallocated Expenses - - - -

Net Profit Before Tax 102.77 33.66 783.61 920.04

Income Tax / Fringe Benefit Tax - - - -

Extraordinary Profit / Loss - - - -

Net Profit After Tax 102.77 33.66 783.61 920.04


27

Other Information

Segment Assets 72830.19 25651.02 37949.04 136430.25

Unallocated Assets - - - 16217.36

Total Assets 72830.19 25651.02 37949.04 152647.61

Segment Liabilities (71099.23) (25651.02) (37269.29) (134019.54)

Unallocated Liabilities - - - (18628.07)

Total Liabilities (71099.23) (25651.02) (37269.29) (152647.61)

a) Treasury includes Investments, balances with RBI & other banks & Interest accrued on Investments & related income there from.

b) Other Banking Operations segment includes Advances other than Retail advances, Other Assets & related income there from.

c) Retail Business segment includes Retail Advances in the form of O/D, Advances against Deposits, Staff Loans, etc. & related income there from.

d) Allocation of Expenses: Expenses incurred at Corporate Center establishments directly attributable to Treasury Operations, Retail Business or Other Banking Operations segments are allocated accordingly. Expenses not directly attributable are allocated on the basis of no. of employees in Treasury & Other Banking Operations Segment or ratio of total assets in respective segments.

12.2 Secondary Segment: In the opinion of the management there are no reportable secondary segments.

13. In the opinion of the Board, the realizable value of the assets, loans and advances is not less than the amounts at which they are stated in the Balance Sheet.

14. In the opinion of the Board, the provisions for all known liabilities are adequate.

15. The Bank has deferred the following expenses over a period of 5 years

a. VRS Scheme of 2009-10 and 2010-11, 2011-12.

b. Gratuity Provision 2010-11.

Details of written off expenses are as follows:

( ` in lacs)Sr.No.

Particulars Opening BalanceAs on 01.04.11

Addition during the year

2011-12

Written Off during the year2011-12

Carried ForwardAs on

31.03.121 VRS 09-10 4.20 0.00 1.40 2.802 VRS 10-11 3.94 0.00 0.98 2.963 VRS 11-12 0.00 21.00 4.20 16.804 Gratuity 10-11 196.82 0.00 49.21 147.61

TOTAL 204.96 21.00 55.79 170.17The above amortization though not in accordance with GAAP, including AS 26 in respect of Intangible Assets, is resorted to in view of RBI guidelines.

28

16. The details as required by Accounting Standard 15 (AS15) (Revised) – issued by ICAI pertaining to gratuity is as under –

(` in lacs)Sr. No.

Particulars 31.03.2012 31.03.2011

1 Discount Rate 8 % p.a. 8 % p.a.2 Expected Return on Plan Assets 9.25 %p.a. 9.25 %p.a.3 Salary Escalation Rate 3% p.a. 3% p.a.4 Reconciliation of opening and closing balance of the present value of the

defined benefit obligationi. Present Value of obligation – opening 526 331ii. Interest Cost 42 26iii. Current Service Cost 31 14iv. Benefits paid (65) (52)v. Actuarial (Gains) / loss on obligation 40 207vi. Present value of obligation – Closing 574 526

5 Reconciliation of opening and closing balance of fair value of plan assetsi. Fair value of plan assets opening 337 315ii. Expected return on plan assets 31 26iii. Contributions 83 48iv. Benefits paid (65) (52)v. Actuarial Gains / (Loss ) on plan assets 0 0vi. Fair value of plan asset closing 386 337

6 Amount recognized in Balance Sheeti. Present value of obligation as at 31.03.2012 574 526ii. Fair value of plan assets as at 31.03.2012 386 337iii. Assets / (Liability) as at 31.03.2012 (188) (189)

7 Expenses recognized in Profit & Loss Accounti. Current Service Cost 31 80ii. Interest Cost 42 26iii. Expected Return on Plan Assets (31) (26)iv. Net actuarial (Gain) / Loss 41 0

8 Expenses recognized in profit and loss account 83 80

17. The details as required by Accounting Standard 15 (AS15) (Revised) – issued by ICAI pertaining to Leave Encashment is as under –

(` in lacs)

Sr. No

Particulars 31.03.2012 31.03.2011

1 Discount Rate 8.25% p.a. 8.00 % p.a.2 Expected Return on Plan Assets 8.50% p.a. 8.25 % p.a.3 Salary Escalation Rate 3% p.a. 3% p.a.4 Withdrawal Rate 1% p.a. 1% p.a.5 Reconciliation of opening and closing balance of the present

value of the defined benefit obligation


29

i Present Value of obligation - opening 266 249ii Interest Cost 22 20iii Current Service Cost 16 11iv Benefits paid (26) (27)v Actuarial (Gains) / Loss on obligation 15 13vi Present value of obligation - closing 293 266

6 Reconciliation of opening and closing balance of fair value of plan assetsi Fair value of plan assets opening - -ii Exepected return on plan assets - -iii Contributions 60 73iv Benefits paid (26) (27)v Actuarial Gains / (loss ) on obligation (34) (46)vi Fair value of plan asset - -

7 Amount recognised in balance sheeti Present value of obligation as at 31.03.2012 293 266ii Fair value of plan assets as at 31.03.2012 - -iii Liability recogninized in B/S as at 31.03.2012 293 266

8 Expenses recognised in Profit & Loss Accounti Current Service Cost 16 11ii Interest Cost 22 20iii Expected Return on Plan Assets - -iv Net actuarial (Gain)/ Loss 49 59v. Expenses recoganised in profit and loss account 87 90

18. There were no Repo / Reverse Repo Transaction during the year.

19. Issuer composition of Non-SLR Investments:(` in lacs)

S.No Issuer AmountExtent of ‘below

investment grade’Securities

Extent of‘inrated’

Securities

Extent of‘unlisted’Securities

1 PSUs 902(906)

Nil(Nil)

Nil(Nil)

Nil(Nil)

2 FIs 378(378)

Nil(Nil)

Nil(Nil)

Nil(Nil)

3 Public Sector Banks 15457(3005)

Nil(Nil)

Nil(Nil)

Nil(Nil)

4 Mutual Funds Nil(Nil)

Nil(Nil)

Nil(Nil)

Nil(Nil)

5 Others 6680(3480)

Nil(Nil)

Nil(Nil)

Nil(Nil)

Total 23417(7769)

Nil(Nil)

Nil(Nil)

Nil(Nil)

6 Provision heldtowards depreciation

0(0)

0(0)

0(0)

0(0)

** Figures in brackets are for previous year.

30

20. Non performing Non-SLR Investments:(` in lacs)

Particulars 2011-2012 2010-2011Opening Balance 0.00 0.00Additions during the year 0.00 0.00Reductions during the year 0.00 0.00Closing Balance 0.00 0.00Total Provision held 0.00 0.00

21. Movement in Provisions:(` in lacs)

ParticularsOpening Balance

As on 1st AprilAdditions Deductions

Closing Balance As on 31st March

2011 20102011 – 2012

2010 – 2011

2011 - 2012

2010 – 2011

2012 2011

a. Towards NPAs 460 862 353 135 0 537 813 460b. Towards Standard

Assets 481 345 98 136 251 0 328 481

c. Towards Diminution in Current Assets

5 1 2 4 0 0 7 5

d. Towards Depreciation on Investments

0 13 0 0 0 13 0 0

e. Foreign Currency Assets & Liabilities N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A.

TOTAL 946 1221 453 275 251 550 1148 946

22. Disclosures as per Reserve Bank of India Guidelines:(` in lacs)

Particulars 31.03.2012 31.03.2011

a. Capital to Risk Assets Ratio (CRAR) 17.69% 19.91%CRAR Tier I capital 12.41% 13.68%CRAR Tier II capital 5.28% 6.23%

b. Movement in CRAR -2.22% -3.02%c. Total Capital Funds 11084 10885d. Risk Weighted Assets 62652 54662e. Investments

i) Book Value 71099 51892ii) Face Value 70056 50440iii) Market Value 66216 48195

f. Advances against real estate, construction business and housing

19104 17610

g. Advances against Shares and Debentures 120 247


31

Particulars 31.03.2012 31.03.2011

h. Advances to directors, their relatives, companies/firms in which they are interestedi) Fund Based 0 0ii) Non-Fund Based 0 0

i. Average cost of Deposits 7.13% 6.17%j. NPAs

Gross NPAs 2399 1140% to Gross Advances 3.81% 1.40%Net NPAs 1586 680% to Net Advances 2.55% 0.84%

k. Movement in NPAsGross NPAOpening Balance 1140 1685Add: Additions during the year 2202 339Less: Closed/Recovered/Written off 943 884Closing Balance 2399 1140Net NPAOpening Balance 680 822Add: Additions during the year 1793 301Less: Closed/Recovered/Written off 887 443Closing Balance 1586 680

l. ProfitabilityInterest Income as a percentage of working funds 9.62% 8.40%Non-Interest income as a percentage of working funds 0.86% 0.93%Operating Profits as a percentage of working funds 0.97% 1.11%Return on Assets 0.60% 0.72%Business (Deposits + Advances) per employee 414 433Profit per employee 2 2

m. Provisions made towards followinga) NPAs 353 135b) Standard Assets 98 136c) Diminution in Current Assets 2 3d) Investment Depreciation (incl amortization) 290 297

n. Commission from Bancassurance Businessa) For selling life insurance policies 47 6b) For selling non life insurance policies 8 6c) For selling mutual fund products 2 2

o. Payment of DICGC premium 118 117

32

23. Accounting Standard (AS) 3 - Cash Flow Statement for the year ended 31st March 2012.

` in Lacs

Sr. No. ParticularsFinancial Year

31st March 2012 31st March 2011

A Cash Flow from Operating ActivityIncrease / (Decrease) in Net Profit 98 329

Increase/(Decrease) in Deposits 8345 863

(Increase)/Decrease in Advances 18416 468

(Increase)/Decrease in Investments (19312) (3285)

Increase/(Decrease) in Branch Adjustment 0 0

Increase/(Decrease) in Reserves & Surplus 398 161

(Increase)/Decrease in Interest Receivable (1161) 567

Increase/(Decrease) in Interest Payable 59 39

(Increase)/Decrease in Other Assets (844) 284

Increase/(Decrease) in Other Liabilities 126 (38)

Net Cash from Operating Activities 6126 (612)

B Cash Flow from Investing Activity(Increase) / Decrease in Fixed Assets (387) (26)

Cash Flow from Investing Activity (387) (26)

C Cash Flow from Financing ActivityIncrease in Share Capital 17 101

Increase/(Decrease) in Borrowings (4924) 293

Cash Flow from Financing Activity (4907) 394

D Net Increase in Cash & Cash Equivalents (A+B+C) 832 (244)

Cash & Cash Equivalents at the beginning of the period 10461 10705

Cash & Cash Equivalents at the end of the period 11293 10461

Net Increase / (Decrease) in Cash & Cash Equivalents 832 (244)

24. Previous year’s figures have been re-grouped / re-arranged wherever necessary to conform to the presentation of the accounts of the current year.


33

As per our report of even date As per our report of even dateFor M/s. P. C. Ghadiali & Co. For M/s. Kolatkar & DandekarChartered Accountants Chartered Accountants

CA. R. T. Doshi CA. S. K. DandekarMem No. 013458 Mem No. 015113(Statutory Auditor) (Internal Auditor)Firm Reg No 103132W Firm Reg No 125263W

Place : Mumbai Place : Mumbai

Date July 10, 2012 Date : July 10, 2012

For and on behalf of the Bank

N. D. BehereChief Executive Officer

N. A. BaldotaChairman

S. B. ChhajedVice Chairman

DirectorsM. P. Baldota A. B. Vakharia A. P. Ahire P. P. GolechaS. R. Baldota P. J. Mehta M. H. Ratti S. N. Baldota

S. M. Paraande N. B. Rege P. R. Chavan

Place : Mumbai

Date : July 10, 2012

34

INTERNAL AUDITOR’S REPORT

1. We have audited the Balance Sheet of “THE GREATER BOMBAY CO-OPERATIVE BANK LIMITED” Mumbai as at 31st March, 2012 and also Profit & Loss Account of the Bank for the year ended as on that date, in which are incorporated the Returns of Twenty Two Branches, and Corporate Office audited by us, with the books of accounts, vouchers and other documents as were available with the Bank and produced before us and after taking into account the reports and observations submitted by us from time to time and the reports submitted by the Concurrent Auditors of the respective branches and subject to Notes in Schedule 4, report that :-

These financial statements are the responsibility for the Bank’s Management. Our responsibility is to express an opinion on these financial statements based on our audit.

We have conducted our audit in accordance with auditing standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance; whether the financial statements are free of material misstatements. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

On the basis of the points indicated above, we report that :

a) We have obtained all the information and explanation, which to the best of our knowledge and belief were necessary for the purpose of our audit.

b) In our opinion proper books of account as required by the law have been kept by the Bank so far as it appears from examination of those books.

c) The transactions of the Bank, which have come to our notice, have been within the competence of the Bank.

d) The Balance Sheet and the Profit & Loss Account dealt with by this report, are in agreement with the books of accounts and drawn up in conformity with the relevant law.

2. i) Certain items of Income & Expenditure as stated under Para ( 3.a ) of the Significant Accounting Policies, are accounted on cash basis as against accrual basis specified under Accounting Standard 9 on “Revenue Recognition” issued by The Institute of Chartered Accountants of India.

ii) The Bank has paid its yearly contribution of ` 34.04 Lacs to LIC and `.3.98 Lacs as premium against the gratuity policy of the staff as per the actuarial valuation done by LIC. The Bank, as per the Actuarial Valuation Reports of Life Insurance Corporation of India (LIC) , has provided for `.49.21 Lacs on account of Gratuity Liability.


35

3. Subject to scope of our audit and subject to our comments in paragraph 2(i) to (ii) above and our comments and observations in our separate report, observations and to notes forming part of accounts, in our opinion and to the best of our information and according to the explanations given to us, the said accounts give a true and fair view :

i) In the case of Balance Sheet, of the state of affairs of the Bank as on 31st March, 2012.

ii) In the case of the Profit & Loss Account, of the PROFIT of the Bank for the year ended on that date.

For KOLATKAR & DANDEKAR CHARTERED ACCOUNTANTS, AUDITORS

(CA. S. K. DANDEKAR) PROPRIETOR

MEMBERSHIP NO. 015113. FIRM REGN. NO 125263W

Place : Mumbai Date : July 10, 2012.

36

STATUTORY AUDITORS’ REPORT FOR THE YEAR ENDED 31st MARCH 2012

We have audited the attached Balance Sheet of THE GREATER BOMBAY COOPERATIVE BANK LTD., Mumbai as at March 31, 2012, the Profit and Loss Account and also the Cash Flow Statement of the Bank for the year ended on that date annexed thereto. Incorporated in the said financial statements are the returns of all the branches of the bank audited by us. These financial statements are the responsibility of the Bank’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in India. Those standards required that we plan and perform the audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statements presentation. We believe that our audit provides reasonable basis for our opinion.

We report that -

1 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.

2 In our opinion, proper books of accounts as required by the law have been kept by the Bank, so far as it appears from our examination of those books.

3 The Balance Sheet, Profit and Loss Account and the Cash Flow dealt with by this report are in agreement with books of accounts and are drawn up in conformity with the law.

4 The transactions of the Bank, which have come to our notice, have been within the powers of the Bank.

5 The returns received from the branch offices of the Bank have been found adequate for the purpose of audit.

6 Subject to

a) Note No. B-5 of schedule 4 and as explained therein, profit for the year is disclosed in excess by ` 1.95 crs as the amount was transferred from Investment Fluctuation Reserve.

b) The Banks Investment in Held to Maturity (HTM) category should not exceed 25% of the total investments. Banks are permitted to exceed the limit provided the excess comprises only of SLR securities and the total SLR securities held in the HTM category is not more than 25% of the Net Demand and Time Liabilities (NDTL) on the last Friday of the second preceding fortnight. It is observed that the investment in Statutory Liquidity Ratio (SLR) securities in HTM is 25.20% of NDTL which is marginally in excess of prescribed limit of 25%,


37

c) Other observations in the Audit Memorandum part A, B and C, Form 1 & 7 and LFAR the consequential cumulative impact on the assets liabilities and profit for the year and read with Significant Accounting Policies and other Notes thereon,

in our opinion and to the best of our information and according to the explanations given to us, as required by the Maharashtra Cooperative Societies Act, the account give a true and fair view in conformity with the accounting principle generally accepted in India.

i) In the case of Balance Sheet of the state of affairs of the Bank as at March 31, 2012.

ii) In the case of Profit & Loss Account of the Profit for the year ended on that date and.

iii) In the case of Cash Flow Statement of the Cash Flows for the year ended on that date.

7) The bank is assigned audit classification ‘A’.

CA R. T. DoshiPartner Membership No.013458

For and On behalf of

P. C. Ghadiali & Co.Chartered Accountant Firm No. 103132W

Place: Mumbai

Dated: 10th July 2012

38

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9,21

,529

43,8

5,00

0,93

312

,03,

45,0

9015

%9,

42,8

3,24

,256

Mar

ch 2

005

2261

912

7982

775

1,35

,33,

47,8

357,

28,6

3,63

,837

4,61

,73,

19,4

147,

00,8

6,48

4’10

%10

,95,

63,6

8,41

0

Mar

ch 2

006

2685

517

,00,

85,5

001,

45,0

6,83

,596

7,73

,25,

25,2

394,

61,7

3,95

,426

1,01

,21,

168

–10

,66,

10,9

2,88

3

Mar

ch 2

007

2970

518

,73,

55,6

251,

01,6

6,30

,750

8,18

,86,

15,6

525,

12,9

4,53

,331

11,6

1,66

,475

15%

11,1

4,58

,68,

143

Mar

ch 2

008

3119

221

,20,

41,2

1781

,48,

82,9

5610

,00,

92,4

6,38

66,

07,3

0,82

,074

10,9

4,62

,783

15%

12,3

9,67

,60,

727

Mar

ch 2

009

3222

323

,12,

65,4

1666

,46,

91,6

6210

,98,

33,8

0,16

37,

45,9

7,41

,825

10,4

6,25

,773

15%

12,6

6,71

,44,

927

Mar

ch 2

010

2532

224

,29,

47,0

5555

,51,

49,5

6912

,08,

70,8

4,80

78,

18,0

4,80

,184

7,46

,89,

477

15%

14,6

1,16

,56,

708

Mar

ch 2

011

2545

125

,30,

13,6

4064

,11,

64,9

4212

,17,

33,7

6,73

48,

13,3

6,79

,831

10,7

5,83

,470

15%

14,7

8,63

,76,

433

Mar

ch 2

012

25,0

0525

4,71

3,86

867

7,92

5,73

613

,007

,883

,662

6,29

2,03

0,87

292

,003

,848

*15%

15,1

9,82

,85,

110

(* P

ropo

sed)


39

BRANCH NETWORK

Sr. No. Branch Branch Address Phone No. Telefax

No.

1 Andheri (E) Unit No. G - 1, Wing - B, Silver Astra Apt., J. B. Nagar, Andheri (E), Mumbai - 400 059.

65201548 / 65201547 28328106

28370682

2 Bandra Reclamation

Indian Education Society’s Management College `Vishwakarma’, Gate No. 1, VMD Lotlikar Vidya Sankul, Opp. Lilawati Hospital, Bandra Reclamation, Bandra (W), Mumbai - 400 050.

61285814/ 6128581661285822/ 61285801

6128581661285822

3 Borivali (E) A - 11, Ratnadham CHS Ltd., Rattan Nagar, Borivali (E), Mumbai - 400 068.

65201873 / 6520187865201925

28905036

4 Bhuleshwar GBCB House, 89, Bhuleshwar, Mumbai -400 002. 61285700 / 61285701 22411210 22408571

5 Bhandup (W) Gurunanak Udyog Bhavan, L B S Marg, Bhandup (West), Mumbai - 400 078.

65201764 / 6520178365201837

25667132

6 Churchgate (E) Baldota Bhavan, 3rd Floor, 117, Maharshi Karve Marg, Churchgate, Mumbai - 400 020.

61285925 / 6128592661285931

22076989

7 Dadar (E) Naoroji House, N. C. Narielwala Agiary Trust Bldg., Mumbai - 400 014.

65202132 / 6520214224112232

24172071

8 Dahisar (E) 6, Sheffield, Ground Floor, Opp. Jari Mari Garden, Anand Nagar, Dahisar (East), Mumbai - 400 068

64578297 / 64578298 28281991

9 Dombivali (E) Manas Solitaire CHS, Shop Nos. 3, 4, 5 & 6, Rajaji Path, Cross Lane 4, Dombivali (E), Dist. Thane

0251-2430213 0251-2430213

10 Ghatkopar (E) Amrut Kunj, Anjaria Wadi, Dr. Doshi Nursing Home, M. G. Road, Ghatkopar (East), Mumbai - 400077.

65200394 / 6520070465200217 / 21027932

21028906 21027625

11 Goregaon (W) 110, Jawahar Nagar, Goregaon (W), Mumbai - 400062.

65201562 / 65201556 28744741

12 Kandivali (W) Bhoomi Apartments, Bldg. No. 8, Dahanukar Wadi, Sector 4, Panchsheel Enclave, Kandivali (W), Mumbai - 400 067.

29671125 / 2967108665201667 / 65201668

29671095

13 Kharghar Hari Om Heritage, Shop No.1 & 2, Ground Floor, Plot No. 8, Sector 21, Kharghar, Navi Mumbai - 410210.

64550397 / 64550398 27742499

14 Malad (W) Saryodaya Bhuvan, Shop No: 4, Ground Floor, Ramchandra Lane Ext, Malad (W), Mumbai - 400 064.

28807088 / 28823163 2882 3163

15 Mira Road (E) Nirmal Nagar Co-op Hsg Soc Ltd., Saibaba Nagar, Mira Bhayander Road, Mira Road East, Dist Thane- 401 107.

28555970 / 28555971 28555971

40

Sr. No. Branch Branch Address Phone No. Telefax

No.

16 Nerul (W) Shop No 10, 11, 12, 13, Amrita Sadan, Sector-22 Opp Nerul Railway Station, Nerul (West), Mumbai 400706.

65201650 / 65201644 27711131

17 Thane (W) Shop No. 2 & 3, Prince Palace, Bldg., Next to Khandelwal Sweets, Near Aradhana Theatre, Panchpakhadi, Thane (W) - 400 602.

65201939 / 6520197465202101

25363703

18 Vasai (W) Regency Co-op. Hsg. Scty., Meena Nagar, Ambadi Road, Vasai (W), Dist. Thane - 401 202.

0250 - 23374420250 - 2340321

0250 -2337 442

19 Versova Sea Pearl Apartments, J. P. Road, Opp. Pratap Colony, 4, Bunglows, Versova, Andheri, (W), Mumbai - 400 058.

26342832 / 2630008026362114

26346248

20 Vile Parle (E) Meghmala Co-op. Society, Sant Janabai Road, Vile - Parle (E), Mumbai - 400 057.

6457079126191318

26191318

21 Vashi Om Niwas, Opp. Mega Mart, Plot No 186, Sector-12, Vashi, Navi Mumbai 400705

65201382/ 6520138365201448

27884402

22 Wadala (W) 198, Rattan Bhavan, D.S. Barretto Road, Wadala, Mumbai - 400 031.

24125638 / 2411297564556440

24172248

OTHER OFFICES

Sr. No. Departments Address Phone No. Telefax No.

1 CorporateOfficeBaldotaBhavan,3rd Floor,117, MaharshiKarveMarg,Churchgate, Mumbai-400020.

61285900 22076989

2 DepositoryCell5/6,GaneshAnandCHSLtd, AnandNagar,CSRoad,DahisarEast,Mumbai-400068

28283696 / 28283698 28283699 / 28963285

28963947

3Personnel and Administration Department

5/6,GaneshAnandCHSLtd, AnandNagar,CSRoad,DahisarEast,Mumbai-400068

64550520/64550521

64550522

28963947

4 ClearingDept.108,1stFlr.,KrishnaChambers, NewMarineLines,Churchgate, Mumbai-400020.

22655596 / 6455 6444 / 45 / 46

22676544

5Stressed Accounts Department

GBCBHouse,89,Bhuleshwar, Mumbai-400002.

61285712/6128571361285714

22411210

6 DataCentre OmNiwas,Opp.MegaMart,PlotNo186, Sector-12,Vashi,NaviMumbai-400705

65201373/6520137765201369

27896943


41

Sr. No. Departments Address Phone No. Telefax No.

7 Knowledge Centre

Om Niwas, 2nd Floor, Opp. Mega Mart, Plot No 186, Sector-12, Vashi, Navi Mumbai - 400 705

27884412 27896943

8 CPO Amrut Kunj, Anjaria Wadi, Dr. Doshi Nursing Home, M. G. Road, Ghatkopar (East), Mumbai - 400 077.

21027932 / 21027625 21028906

9 Comm. Loan - Relationship Cell

Indian Education Society, VMD Lotlikar Vidya Sankul, Opp. Lilawati Hospital, Bandra Reclamation, Bandra (W), Mumbai 400 050.

61285811 / 61285831

61285833

61285832

10 Credit Admn & Documentation Cell

Indian Education Society, Manikrao Lotlikar VidyaSankul, Opp. Lilawati Hospital, Bandra (W), Mumbai -400 050.

61285820 / 61285821 26451947

11 Housing & Retail Cell -

Indian Education Society, Manikrao Lotlikar Vidya Sankul, Opp. Lilawati Hospital, Bandra (W), Mumbai - 400 050.

61285828 / 61285815 26451947

12 Forex Dept GBCB House, 89, Bhuleshwar, Mumbai - 400 002.

61285703 / 61285704

22408571

22411210

42

Special Health Check Up Plan at SevenHills Hospital

On the occasion of Diamond Jubilee Year of Greater Bank, the Board of Directors have approved a Special Health Check Up Plan for the Members and Employees aged 40 years and above at SevenHills Hospital, Marol-Maroshi Road, Andheri (E), Mumbai– 400 059. The details of the Special Health Check Up Plan are given below:-

GREATER BANK WELLNESS PACKAGES FOR MALES FOR FEMALES

Basic Investigations

CBC YES YES

UrineRoutine YES YES

Acid Phosphatase YES NO

Diabetes Profile

FBS YES YES

Lipid Profile Mini (Cholestrol-total,HDL,LDL,VLDLandTriglycerides) YES YES

Cardiac Evaluation

ECG YES YES

TMT YES YES

Kidney / Renal Profile

BUN YES YES

Creatinine YES YES

Uric Acid YES YES

Liver Function Test, Mini (Bilirubin-total,directandindirect,SGOT,SGPT,GGTP,Proteins,Alkalinephosphatase)

YES YES

IMAGING & DIAGNOSTICS

ChestX-ray YES YES

MAMMOGRAPHY-B/L NO YES

Thyroid Panel

T3T4TSH YES YES

Cancer Markers

PSA YES NO

PAPSMEAR NO YES

CONSULTATIONS

Physician YES YES

Gynecologist NO YES

# Complimentary Breakfast & Lunch will be provided by the Hospital


43

The Greater Bombay Co-operative Bank Ltd.(SCHEDULED BANK)

Corporate Office: Baldota Bhavan, 3rd Floor, 117, M. K. Marg, Churchgate, Mumbai-400020. Tel: 61285900 Telefax: 22076989

ELECTRONIC CLEARING SYSTEM - Details for Dividend

Kindly credit my dividend for the shares allotted to me to my Bank account (details given below) through Electronic Clearing System:

**Bank Name :

Branch Name :

Branch Code :

9 digit code as appearing on the MICR band of the cheque supplied by Bank

Account Type : Saving Current CashCredit Loans

Folio No. :

Account No : (As appearing in the cheque book)

Please attach a photo copy of a cheque or blank cheque duly cancelled for ensuring the accuracy of the banks name, branch name,code number and account number.

**GiveThe Greater Bombay Co-op Bank Ltd. Account No. as far as possible.

Name of Shareholder(s) Signature (s)

1)

2)

FORMAT FOR MEMBERSMembership No.

Name

Address

Mobile No.

Landline No.

Email-ID

The above information can be sent at [email protected]

44

INFORMATION FOR MEMBERS

1. CHANGE OF ADDRESS:

Please intimate to us any change in your address and quote the Reg. Folio No. given on your share certificate while writing to us.

2. SHARE CERTIFICATES:

If you have not collected your share certificates so far, you are requested to collect the same from the respective branches, without further delay.

3. UNCLAIMED DIVIDEND:

If you have not collected your dividend for the year ended 31st March 2009 (2008-09), kindly collect the same latest by 31st December, 2012 failing which unclaimed dividend for the same is liable to be forfeited in terms of Bye-Law no.46 (iv) of our Bank.

4. DIVIDEND THROUGH ELECTRONIC CLEARING SYSTEM:

We are happy to inform that the Dividends will be distributed through the RBI Electronic Clearing System (ECS Credit). Kindly help us to deliver the dividends effectively by duly completing the ECS Mandate form which is given at the end of the Annual Report. The form can be submitted to any of our branches.

5. RATANCHAND H. BALDOTA MEMORIAL AWARD:

We are happy to inform that from the year 1998, we have started giving the above mentioned Award to ten wards of our individual members who have secured maximum number of marks above 75 % in order of merit in the Xth Standard Board Examination. The members whose wards satisfy the above conditions are requested to contact any of our branches for further details.

6. MEMBERS HOLIDAY HOME AT PANCHGANI-MAHABALESHWAR:

Bank has made a tie-up arrangement with Co-operative Banks’ Employees Union for providing holiday home facility to its members at ‘Anand Sagar Vishram Gruh’, Panchgani – Mahabaleshwar. Members can avail the Holiday Home facility of Greater Bank for their weekend / holidays. The holiday home is situated at Dandeghar, Panchgani, Dist. Satara. For details you can contact the nearest branch.

7. APPEAL TO MEMBERS:

Kindly provide your e-mail id and mobile / contact no. in the format given on page 43. This will enable the Bank to provide prompt information regarding important news, updates, announcements, SMS alerts etc. This information may be sent at [email protected]

8. SUGGESTIONS WELCOME:

If you have any useful suggestion(s) to offer, to improve OURSELVES, you are most cordially invited to write to us at [email protected]. Please do not forget that this is “YOUR OWN BANK” and it is our earnest endeavour to make “THE BANK” an institution which you can bank upon with confidence.

th - greater bank sheet as at 31st march 2012 ..... 12 6. profit & loss account for the year...

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