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Shree Sharada Sahakari Bank Limited, Head Office of 51

V.S Sinnarkar & Associates

Chartered Accountants

AUDIT REPORT

NAME : SHREE SHARADA SAHAKARI BANK LTD.

BRANCH : HEAD OFFICE

ADDRESS : 47/1 A,TAWARE COLONY, FLAT

No.11,PARWATI PLAZA,PUNE -411030.

PERIOD : 1ST APRIL 2015 TO 31ST MARCH 2016

BY V .S. SINNARKAR & ASSOCIATES


Flat no. 2, Vinayak Apartments

387, Narayan Peth, Pune 411030




To,

The Members,

Shree Sharada Sahakari Bank Ltd.

Pune-411009

Respected Members,

Subject: Audit report of Shree Sharada Sahakari Bank Limited for

the period from 1 April 15 to 31 March 16.

We have examined attached Balance Sheet of Shree Sharada Sahakari Bank Limited,

Pune as at 31st March 2016 and also the Profit and Loss Account of the said Bank

for the period from 1st April 2015 to 31st March 2016. The Financial statements are

the responsibility of the management. Our responsibility is to express an opinion on

these financial statements based on the audit.

We have conducted the audit in accordance with the auditing standards generally

accepted in India. Those standards require that we plan and perform the audit to

obtain reasonable assurance about whether the financial statements are free from

material misstatements. An audit includes examining, on 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. We believe that

our audit provides a reasonable basis for our opinion. We report that,

1. In our opinion and to the best of our information and the explanations given to

us / shown by the Bank,

A. The Balance sheet read with the significant accounting policies and notes thereon.

Balance Sheet containing the necessary particulars and it is properly drawn up

so as to exhibit a true and fair view of the affairs of the Bank as at 31st March

2016.

B. The Profit and Loss account read with the significant accounting policies and notes

thereon shows a true balance of profit for the year ended 31st March, 2016

subject to the following, We report that,




• Interest accrued up to 31st march 2016 on cumulative and periodic Fixed

Deposits (FDR) are not shown separately in the balance sheet and such interest

is included in the value of FDR which was shown in balance sheet and to that

extent value of that FDR is increased.

• Reserves created out of the profit of the last year are correspondingly invested

as per the guidelines prescribed by the RBI and Co-operative department.

• It is observed that borrowers are doing multiple banking without the

permission of the bank which is contrary to the guidelines issued by the

Reserve Bank India (RBI); hence we suggest that bank should monitor such

cases.

• Dividend Equalization Fund:

As per rule 52(3), a society may create Dividend Equalization Fund by crediting

to it a maximum of 2% of the paid-up share capital in any year until the fund

amounts to 9% of the paid-up share capital. The society can draw upon this fund

in any year only when it is unable to maintain a uniform rate of dividend, it has

been paying during the last preceding 5 years or more.

During the course of audit it is observed that the bank has not crossed the limit

of 9% by creating "Dividend equalization fund" at Rs.47.88 Lakhs.

2. 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 and have

found them to be satisfactory.

3. The transactions of the Bank which have come to our notice have been

within the powers of the bank.

4. In our opinion, proper books of accounts have been kept by the Bank so far as

appears from our examination of those books.

5. The Bank’s Balance Sheet and Profit and Loss account dealt with by this report

are in agreement with the books of account.

6. We have verified the dates for CRR compliance for the year 2015-16 and certify

the same to be correct.

7. As per the norms of Audit classification of Urban Co-operative Banks and as per the

guidelines of Commissioner for Co-operation and Registrar of Co-operative Societies,

Maharashtra State. Pune - 411001, we are pleased to award audit class "A" to the bank.




We place on record our sincere thanks to the management and staff members of the

bank for their kind co-operation extended to us during the course of our audit

For V.S.Sinnarkar & Associates


(CA Veena V. Nagarkar)

Place: Pune Proprietor

Date: Membership No:




SHREE SHARADA SAHAKARI BANK LIMITED, PUNE

01.04.2015 TO 31.03.2016

PART – A

We have conducted the Statutory Audit of Head Office and all the branches of Shree

Sharada Sahakari Bank Ltd., Pune vide appointment letter dated 17.10.2015. The audit was

conducted on the basis of accounting data maintained on computer systems and reports

generated by computer systems. An audit includes examining, on a test basis, evidence

supporting the amounts and disclosures in financial statements. During the audit we have

observed certain irregularities regarding accounting system, in following the RBI rules and

guidelines and all other aspects of Banking Operations. The irregularities were discussed

with the Board and bank officials and wherever possible irregularities have been rectified.

The details of irregularities are included in Reports of individual branches attached herewith

and summary of major observations with examples from different branches are noted in the

following three parts A, B and C.

1. LOANS BEYOND EXPOSURE LIMITS:-

Exposure Limit:-

As per the norms decided by the bank and controlling authorities from time to time,

exposure limits set for the banks are as follows (based on the audited figures as on

31.03.2015

(Rs. In Lakhs)

Sr.

No.

Particulars Amount

(31.03.2015)

TIER –I- CAPITAL

1. Issued Paid up Capital 543.73

2. Reserve Fund 829.70

3. Building Fund 677.16

TIER –II- CAPITAL

4. Investment Fluctuation Fund 350.85

5. Dividend Equalization Fund 45.58

6. Other Fund 405.68

SURPLUS

7. Surplus after Providing for Dividend at 15% 272.09

TOTAL 3124.79 In above table, other Funds Includes Following:




(Rs. in Lakhs )

Sr No. Fund Amount

1 Charity Fund 5.25

2 Staff welfare fund 17.01

3 Technology Development Fund 160.00

4 Members Welfare Fund 26.30

5 Excess Provision under BDDR 197.12

Total 405.68

Exposure Limits@ 15 % for Individuals works out to be 468.72 Lakhs, hence the bank has set

the limit of Rs 460.00 Lakhs

Exposure limits @ 40 % for Group of companies works out to be Rs. 1249.92 Lakhs, hence

the bank has set the limit of Rs. 1200.00

During the year it was observed that the bank has not advanced any loan beyond the

exposure limit set by the bank to any individual or groups.

2. UNSECURED LOANS:-

Bank has given unsecured loans to the individual borrowers as per the norms of advances

up to Rs. 5 Lakhs. The detailed list of the unsecured loans is as per Annexure No-1

attached.

3. NON- PERFORMING ASSETS, CLASSIFICATION, PROVISIONING:

Bank is having Bad and Doubtful Debts Reserve amounting to Rs.563.83 Lakhs as at

31 March 2016. Total outstanding balance of NPA accounts as on 31.03.2016 is

Rs.369.23 Lakhs. Detailed list is attached in Annexure No 2. Bank is having provision

on Standard Assets amounting to Rs.231.00 Lakhs

4. PROVISIONING OF EXPENSES:-

Bank has made adequate provisions for all the expenses. List of Provisions is attached in

Annexure No-3

5. COMPARATIVE NET WORTH OF THE BANK:-

As per Annexure No-4 Attached.

6. DETAILS OF PENDING ENTRIES ABOVE SIX MONTHS UNDER SUSPENSE/ANAMAT

ACCOUNT:-




As per Annexure No-5 Attached

7. CASH AND CASH RETENTION LIMIT:

We have physically verified the opening cash balance of Rs.52,810/- in the 1st session of

head office on 11/07/2016 the same was found to be correct as per the cash balance.

We have physically verified the opening/closing cash balance at the 1st /2nd session of all

the branches and the same was found to be correct as per cash balance book.

In few cases, branches have exceeded the retention limit and have reported the same

to Head Office. For excess cash retention details please refer to our separate branch

reports.

8. INCOME TAX PROVISION:

Since the Tax audit of the Bank for the F. Y. 2015-16 is not completed till the date of

audit; we have relied on the amount of Tax Provision provided by the bank authorities.

9. MEMBERS /MEMBERSHIP:-

At the beginning of the year there were 7906 regular members. During the year 75 new

members were admitted and 78 members resigned. Hence as on 31st March 2016 there

are 7903 members.

The break-up of the membership is as follows:-

Sr.

No.

Type of Members Regular

Members

1. Individual 7607

2. Society 1

3. Others

Branch Name Date of

verification

Amount(Rs.)

Cashier Officer

Head Office 11/07/2016 52,810/- Gejge Bute

Bibwewadi 31/05/2016 6,91,480./- Saindane Gulab. Dalvi Nahesh

Pashan 18/05/2016 19,90,349./- Wawale A. V. Surve N. N.

Sinhagad 23/05/2016 13,23,928./- Mahajan S. S. Dumbre V.K.

Satara 08/06/2016 74,56,676./- Deshmukh S. R. Kulkarni N.G.

Shaniwar 23/06/2016 47,89,721./- Kadam B.S. Prabhudesai

Sadashiv 15/06/2016 40,43,637./- Dhamale S. S. Deosthale M. C.

Katraj Kondhwa 26/05/2016 18,55,873./- Bhadane K. D. Shirke V.




- Association 0

- HUF 4

- Proprietor 149

- Trust 5

- Partnership Firms 99

- Company 38

Total Members 7903

Bank has kept Membership Register in Form ‘I’, which is up dated.

Members List is in form ‘J’ is maintained on system, which is updated from time to time.

Members List ‘J’ as per prescribed format by Rule 39 of M.C.S.Rules, 1961 i.e. Class of

members, is disclosed and the Nomination of all the members is registered

10. MEETINGS:-

Details of all the meetings held during the period covered under audit are given below:-

Sr.

No.

Type of Meeting No.

1. Annual General Meeting (30/09/2015)

1

2. Special General Meeting 0

3. Board Meeting 31

4. Executive and sub-committee meetings

a. Loan and Recovery Sub Committee Meeting 48

b. Staff and Administrative Sub Committee Meeting 15

c. Audit Investment and ALM Sub Committee Meeting 14

d. Grievances Redressal Sub Committee Meeting 12

e. Furniture Sub Committee Meeting 0

f. OTS Sub Committee Meeting 0

g. Joint Shistapalan Sub-Committee Meeting 0

h. Information and Technology Sub-committee meeting 13

i. Annual increment joint recommending sub-committee 1

j. Internal Complaint Redressal Sub- committee 4

k. Monitoring of large value special sub-committee meeting 2

l. Interview Sub- Committee 1

5. Other branch committee meeting 80

Total: 222

11. ANNUAL GENERAL MEETING:-




The 37th Annual General Meeting was held on 30/09/2015 at ‘Surbhi hall’, Taware

Colony, Pune -411009 and same was presided over by Chairman Shri. Rajendra Marathe.

12. BOARD OF DIRECTORS:-

At present, there are 16 members on the board of directors, out of which 12 directors are

elected, 2 directors are nominated as expert directors and 2 directors are nominated by

the authorized union of employees as per bye laws of the bank. During the year none of

the directors is appointed or resigned from the board. List of directors as on 31.03.2016 is

as per Annexure No-6 attached. And the Various working committees of directors during

the year are as per Annexure No-7 attached.

13. MANAGING DIRECTOR / CHIEF EXECUTIVE OFFICER:-

Mr. Ravindra Shankar Shendye is working as Managing Director (officiating) since

24.01.2011, who is well supported by Mr. M.M.Jagtap Asst. Gen. Manager.

AUDIT RECTIFICATION REPORT:-

Audit Rectification report of previous year’s Audit is submitted by Bank on 16-10-2015.

Bank has complied with the observations reported in the last year’s Statutory Audit

Report.

Bank has not taken precautions to avoid the recurrence of following observation

mentioned in last year’s Statutory Audit Report.

i. Credit Appraisal System:

- In some of the cases, loans have been sanctioned without taking appropriate financial

documents of the borrowers and guarantors.

- Post sanction visit reports should be kept in all cases where the asset is created out of

banks finance.

- Working capital needs of the Borrowers should be properly assessed.

- Periodic valuation of mortgaged properties is not obtained at the time of renewal of

cash credit limits.

- Audited accounts are not insisted upon from the non-corporate borrowers enjoying

limit above Rs. 10 Lakhs.

- Borrowers are themselves Guarantors in several cases. It is necessary to consider their

age, net worth or assets and liability position before accepting them as guarantors.

- End use of the loan amount disbursed is not obtained and confirmed in few cases.

- More weight-age is given to security available instead of other important aspects like

purpose of loan, borrowers profile, age, repayment capacity, project reports, technical




and commercial feasibility, geographical advantages, qualification and expertise of the

borrowers etc.

- Analysis of business trends, future prospects, orders in hand position, competitions

etc. should be made thoroughly while sanctioning the loans.

14. AUDIT AND INSPECTIONS:-

i. Concurrent Audit:-

Bank has Quarterly Concurrent audit system. Bank has appointed Chartered

Accountancy firms to conduct concurrent audit of branches. Details are as per

attached Annexure No-8. Lahoti & Kasat, Chartered Accountants are Chief Concurrent

Auditors of the Bank for the financial Year 2015-16.

ii. RBI Inspection :-

XVth inspection of the bank was conducted by RBI in January 2016 with respect

to the period ending March 2015. Bank has received report dt.29-6-2016. Grade

`A’ is awarded to the Bank.

Line of Action suggested by the RBI and action taken by bank is given in the

annexure of the report.

iii. Tax Audit:-

As required under Income Tax Act, 1961, Tax Audit for FY 2014-15 was carried out by,

S. A. Limaye and Co., Chartered Accountants, Pune.

Investment Audit:-

As per the RBI norms, Audit of Investments for the year was carried out by Lahoti &

Kasat, Chartered Accountants, Pune. Investment Audit reports are submitted to

Reserve Bank of India along with the quarterly returns.

Following Audits were not carried out by the bank during the year.

- Revenue Audit,

- Credit Portfolio Audit,

- Information System Audit (EDP Audit).

15. INTERNAL CONTROL POLICY:-

The internal control policy prevailing in the bank has scope for improvement.

The following Rules / Policies are maintained by the bank:-

i. Investment Policy:-




Investment policy has been framed and amended from time to time, as per the RBI

guidelines, Co-operative department’s guidelines and considering Market Trends.

As per verification of the Minutes of Investment Committee Meeting, only sales and

purchase of securities are mentioned and same has been noted and approved.

Investment committee should make some comments / give opinion on the sale and

purchase of investments.

It was observed that profits are appropriated to earmarked funds and respective

investments in respect of the same have been made. It was observed that interest on

such investments is included in the income of the year instead of capitalizing the

same.

Valuation of Securities: -

Investment Policy framed by the bank does not speak about Valuation of State

Government and other securities for which quotes are not available in open market.

Valuation of these securities is made on the basis of ` Yeild To Maturity’.

indicated by Fixed Income & Money Market Derivatives association of India

(FIMMDA).

During the year it is observed that the investments in respect of CRR and SLR are

more than the required ratio to be maintained as per the RBI Guidelines.

As per RBI guidelines Maintained by the bank.

CRR 4% 4.22 % (31/03/2016)

SLR 21.50% 30.72% (31/03/2016)

- Classification of Securities:-

Bank has classified most of the Government Securities in Held to Maturity (HTM)

category, whereas some are classified as Available for Sale (AFS). Separate registers

should be maintained according to the nature of investment.

i. LOANS/ ADVANCES CREDIT POLICY:-

Bank has defined policy and rules on advances and it is observed that the bank is

generally operating within the said guidelines and rules. Policy of advances is framed by

Board of Directors of the bank in consultation with the committee set for the advances.

Loan committee of the bank reviews the credit policy from time to time as per the

circulars and guidelines issued by the Reserve Bank of India and the, Co-op. Dept. etc.

and gives recommendations for the changes to be made in the policy to the Board Of

Directors of the bank. Specific instructions and guidelines are issued to the branches and

branches are operating on the basis of these instructions and guidelines.




Credit appraisal exercise carried out by the bank was not rigorous and did not capture

the turnover or utilization related aspects of credit facilities.

The information regarding audited financial data, valuation of security, visits related

queries, etc. were not furnished in some of the cases. The credit appraisal method

adopted by the bank is not sufficient to assess the genuine credit needs of the borrower

and end use of the funds.

ii. DEPOSIT POLICY:-

Bank has its own Deposit Rules / Policy. As per the changing needs, and guidelines and

circulars of RBI and Co-op. Dept., bank has made suitable changes in deposit policy and

various interest rates.

Bank is having high cost and low cost deposits. However , considering the position of the

same, the bank should canvas the low cost deposits to enhance the profitability. Cost of

Funds is at par with previous year.

Bank has accepted deposits from Trust for amount exceeding Rs. 1 lakhs, which is in

violation of clarification given by Pune District Urban Co-operative Banks’ Association.

iii. INTERNAL CONTROL:-

i) Bank should take periodical printouts of Cash book, all ledgers and sub-ledgers,

in each branch.

ii) Bank should prepare proper and detailed loan manual considering RBI

guidelines and same should be followed strictly. Bank should have proper

appraisal system for sanctioning of loans, renewal of loans considering the

enhancement of existing limits.

iii) The Branch manager should take Latest Financial Statements, Income Tax

Returns, project report, and future trend of business before

disbursing/renewing any term loan /cash credit facility.

iv) Staff rotation should be done periodically.

v) Proper and timely compliance of Concurrent / Internal / Local / Statutory Audit

Reports should be done and suggestions should be implemented to the

maximum extent. Head office should take timely feedback on this matter from

branches.

16. MANAGEMENT OF FUNDS:-

i. Statutory Liquidity Reserve: (SLR)




According to section 24 of the Banking Regulation act, bank is required to maintain

SLR @ 21.50% (w.e.f. 07th February, 2015) of Demand and Time liability.

During the F.Y. 2015-16, bank has maintained average SLR @ 30.72% i.e excess by

9.22% as required by RBI. This shows that the management has a scope to utilize the

funds of the bank in a more profitable manner.

Maximum Statutory Liquid Ratio during 01-04-2015 to 31-03-2016.

(Amount in Rs)

Date NDTL SLR SLR EXCESS EXCESS

REQUIRED ACTUALLY MAINTAINED MAINTAINED

TO BE MAINTAINED Rs. (%)

MAINTAINED

06-04-2015 3,17,91,45,641 6,835,16,313 1,09,71,68,965 41,365,26,53 13.01

05-05-2015 3,25,98,41,309 7,008,65,881 1,07,01,00,098 36,923,42,16 11.33

30-06-2015 3,22,01,22,222 69,23,26,278 1,10,82,40,762 41,59,14,484 12.92

16-07-2015 3,21,29,67,807 69,07,88,078 1,14,14,37,533 45,06,49,454 14.03

02-08-2015 3,30,30,46,055 71,01,54,902 1,09,53,92,392 38,52,37,490 11.66

15-09-2015 3,31,20,58,754 71,20,92,632 1,11,58,03,289 40,37,10,658 12.19

04-10-2015 3,23,61,34,661 69,57,68,952 1,01,11,43,745 31,53,74,793 9.75

30-11-2015 3,36,06,42,163 72,25,38,065 1,11,44,03,740 39,18,65,675 11.66

23-12-2015 3,33,29,61,692 71,65,76,764 1,15,95,61,219 44,29,74,455 13.29

03-01-2016 3,45,68,05,087 74,32,13,094 1,16,46,48,826 42,14,35,733 12.19

18-02-2016 3,35,79,97,454 72,19,69,453 1,14,90,10,965 42,70,41,512 12.72

01-03-2016 3,39,07,55,960 72,90,12,532 1,14,98,60,881 42,08,48,349 12.41

ii. Cash Reserve Ratio :(CRR)

According to section 18 of the Banking Regulation Act, Co-Operative bank has to

maintain Cash Reserve @4% of Demand and Time liabilities.

Bank has maintained the stipulated ratio during the year. During the F.Y.2014-15, the

bank has maintained on an average 3.47% excess CRR than as required by RBI. There is further scope to utilize the funds of the bank in a more profitable manner.

(Amount in Rs)

Date NDTL CRR CRR EXCESS EXCESS

REQUIRED ACTUALLY MAINTAINED MAINTAINED

TO BE MAINTAINED Rs. (%)

MAINTAINED

20/04/2015 3305138766 132205551 140917564 8712014 0.26

25/05/2015 3232850355 129314014 136995404 7681390 0.24

29/06/2015 3220122222 128804889 140523855 11718967 0.36

19/07/2015 3212967806 128518712 135182188 6663477 0.21

03/08/2015 3303046054 132121842 139931478 7809636 0.24




30/09/2015 3319555375 132782215 151387479 18605265

0.56

09/10/2015 3236134660 129445386 139754673 10309287 0.32

08/11/2015 3300228734 132009149 139697413 7688264 0.23

17/12/2015 3332961691 133318467 142269470 8951003 0.27

31/01/2016 3357702562 134308102 145335314 11027211 0.33

01/02/2016 3357702562 134308102 141792538 7484436 0.22

01/03/2016 3390755962 135630238 143325177 7694938 0.23

iii. Under / Over Trading:-

At the close the year, it seems that the bank has under traded to the extent of

Rs.2623.31 lakhs. This can be judged from the following data:

(Rs. In Lakhs)

Particulars Amount % Average Amount

(i) Share Capital 588.58

Reserve Funds 969.35

Other Funds 2,471.13

Accumulated Profit 287.70

Total 4,316.76 75%

3,237.57

(ii)Total Deposits 37,937.63 60%

22,762.58

Amount available for advances

(A)

26,000.15

Actual Advances made (B)

23,376.84

Under trading (A-B)

2,623.31

More efforts need to be taken to utilize the funds efficiently so as to maximize profits and

also have good advances portfolio.

17. DIRECTORS AND STAFF TRAINING:-

To update the knowledge of staff, bank sends its staff or participates in various

programmers organized by various institutions, RBI, CO-OP. Departments and other

societies.




During the year bank’s Directors and staff attended various programmers as per

Annexure No-9 attached.

Looking at the rapidly changing economic scenario specially in banking sector, training

to all the staff is of utmost importance.

18. OVERDUE AND RECOVERY:-

i. Overdue:-

Bank has maintained the overdue position period wise and branch wise.

As at the year ended on 31-03-2016 and as per information provided by bank

officials, following is the overdue summary:

Statement Showing Overdue according to security as ascertained

from the Bank as on 31/03/2016

(Rs. In Lakhs)

Description No.

of

A/c's

Over dues

as on

31/03/201

6

Overdue which are good and fully Secured 183 140.65

Overdues which are good and Secured by Guarantees of Sureties 77 1.94

Overdues which are Doubtful; Against which Bad Debts Reserve is

created.

69 334.89

Total 329 477.47

Statement Showing Overdue Statement as on 31/03/2016

Description No.

of

Ac's

Over dues

Amount

Overdues of more than 3 years standing 28 44.30

Overdues of more than 1 to 3 years standing 16 281.20

Overdues of less than 1 year standing 285 151.97

Total 329 477.47




As per the information provided by the bank, periodic overdue statements are drawn. Total

overdues are 2.04% of total Advances.

ii. Recovery:

The Gross NPA is 1.58% of total advances.

Recovery of NPA Accounts as at end of the year is Rs.46.36 Lakhs. This recovery is

12.55% of Gross NPA as on 31-03-2016.

19. ACTION AND RECOVERY U/S 91 AND 101 OF M.S.C.Act.1960 AND U/S 138 OF

NEGOTIABLE INSTRUMENT ACT:

On the basis of information provided by bank, following is the summary of suit filed

cases:

(Rs. In Lakhs)

Sr.

No.

Particulars No. of Accounts Amount

(Cl. Balance)

1 Awarded Cases 28 279.36

2 Un-awarded Cases 0 0

Total:- 279.35

Out of above cases, proceedings of awarded cases are as under:

1. Cases awarded but no recovery:

During the year there are 17 cases awarded but bank has failed to recover the

proceedings.

Receivable amount of such cases is Rs 9,64,621.11/-

2. Cases awarded and fully recovered:

During the year there are 16 cases awarded where bank is successful in recovering full

amount. Total amount of such recovery during the year is Rs 30,34,982/-/-

3. Cases awarded and partially recovered:

During the year there are 28 cases where bank had recovered partial amount. Opening

Amount of receivable is Rs. 2,85,58,647/- Actual recovered during the year Rs 10,70,275/-.

Receivable as on 31/03/2016 is Rs.2,79,35,944/-

Recovery from suit filed, awarded cases during the year: Rs.41.05 Lakhs, details are as

follows:

(Rs. In Lakhs)

Sr.

No.

Particulars Amount

1 Awarded Cases 41.05




2 Un-awarded Cases 0.00

Total:- 41.00

Above position is drawn up to the Balance Sheet date i.e. 31st March, 2016 and these figures

include cases awarded in past years also.

Bank has filed case U/s 138 of Negotiable instrument act against borrowers whose

cheques are dishonored, details there of as under:

Sr.

No.

Particulars No. of

Accounts

Amount

1 Pending cases as on 31.03.2015 32 20.92

2 Newly filed cases during year - 2015-2016 5 2.82

3 Cases withdrawn during year -2014-2015 10 5.86

4 Cases awarded during year -2014-2015 0 0

5 Pending Cases as on 31.03.2015 27 17.88

20. FINANCIAL POSITION:-

The comparative financial position of the bank during the last years is as follows:

Particulars As on

31.03.2015

As on

31.03.2016

Increase(+)

Decrease(-) %

Share capital 543.73 588.58 44.85 8.25

Reserve Fund & Other

Reserve 3040.86 3440.48 399.62 13.14

Deposits 35840.85 37937.63 2096.78 5.85

Investments 16603.05 15454.60 -1148.45 -6.92

Advances 20201.63 23376.84 3175.21 15.72

Working Capital 40077.65 43018.29 2940.64 7.34

Fixed Assets 369.94 353.33 -16.61 -4.49

Net Profit 350.34 287.70 -62.64 -17.88

(Rs. In Lakhs)

As on Difference (+)

or (-) Percentage

31.03.2015 31.03.2016

Current Deposits

1,933.00

1,994.93

61.93 3.20%

Saving Deposits 7.69%




6,661.25 7,173.62 512.37

TOTAL:-

8,594.25

9,168.55

574.30

6.68%

Term Deposits

27,246.60

28,769.08

1552.48 5.59%

TOTAL:-

35,840.85

37,937.63

2,096.78 5.85%

From the above Financial position of the bank -

• The Share Capital is increased by Rs. 44.85 Lakhs i.e. 8.25% during the year, due to

increase in advances .

• The Reserve Fund and Other Reserves increased by Rs.399.62 lakhs, i.e. increase by

13.14% mainly due to the appropriation of profit of last year and transfer to

Reserves.

• Total Deposits are increased by Rs. 2096.78 Lakhs i.e.5.85%.

• Investments of the bank include :

31-3-2015 31-3-2016

a) Fixed Deposits with Banks 4985.24 4148.66

b) Investments In Bonds 503.14 997.20

c) Investments In Govt Secu. 11113.10 10308.74

• The advances are increased by Rs.3175.21 Lakhs i.e.15.72% over last year.

• Total fixed assets decreased due to depreciation. And there was sale of items of old

Computers , vehicle etc. during the year.

• Profit & Loss Account:

Comparative figures of 2015-16 & 2014-15 are as below :

(Rs.In Lakhs)

Particulars 2014-15 2015-16 Excess / %

-Short

INCOME:




Interest & Discount Recd. 2,519.99 2,721.07 201.08 7.98%

Interest on Investment 1,325.26 1382.07 57 4.32%

Dividend Recd. 64.85 37.46 (27.39) -42.24%

Commission Recd. 14.75 16.06

1.27 8.60%

Other Income 159.63 179.32 19.69 12.33

TOTAL: 4084.48 4335.98 251.50 6.16%

EXPENDITURE:

Interest paid on Deposits 2,779.84 2,916.29 136.45 4.91%

Salary 465.54 486.97 63.49 -13.64%

Rent ,Rates & Taxes 47.51 51.72 4.21 8.86%

Repairs & Maintenance 26.83 15.41 (11.42) -42.57%

Depreciation 75.38 70.42 (4.96) -6.58%

Income Tax 133.72 159.15 25.43 19.02%

Special

Reserve

8.00 7.15 (0.85 ) -10.63%

Other Expenditure 197.32 341.17 143.85 72.90%

TOTAL: 3734.14

4048.28 314.14 8.41%

NET POFIT/-LOSS 350.34 287.70 (62.64) -17.88%

• Net Profit during the year is decreased by Rs.62.64 Lakhs as compared

to last year.

• During the year bank has earned total income of Rs. 4335.98 as compared to

Rs. 4084.48 of last year. Income mainly include Interest & Discount Rs.

2721.11, Interest on Investments Rs. 1382.07 & Other Income Rs. 179.32

• Bank has incurred Total Expenses of Rs. 4048.28 during the year.

Expenses mainly include Interest paid on Deposits Rs. 2916.29, Salary

Rs. 486.97, Provision for Tax Rs. 159.15 and Other Expenses Rs. 341.17

Provision of Rs. 7.15 is also made for Special Reserve during the year.

21. PRIORITY AND WEAKER SECTORS:

The details of the loans given by bank to Priority and Weaker Sections as per information

provided and returns submitted by bank to RBI are as follows:

(Rs. In Lakhs)




Particulars O/s Amount as on

31.03.2016

% Total

Loans

1. Loans given to Priority Sector 8,764.92 37.49%

2. Loans given to Weaker Sections 1785.94 7.64%

3. Loans given to Non Priority Sector 12825.78 55.08%

4. % of Loans to Weaker Sections to last year’s Avg. Net

Banking Credit (ABC) i.e. (19,737.30)

20.38%

Total Loans Given by the Bank 23376.64 100%

As per RBI Norms, the bank should provide at least 10% of loans to Weaker Sections out of

the target given for lending to Priority sectors. Thus the bank has complied with the same.

22. CLASSIFICATION OF ADVANCE AND NPA ACCOUNTS:

Bank has generally followed various RBI guidelines and circulars issued on Advances and

Loans and Credit Facilities and Income Recognition, Assets Classification, Provisioning and

other related matters. Please refer to Annexure No. 10 of this report.

23. WORKING CAPITAL AND INTER-RELATED RATIOS:-

A table showing a comparison of the actual percentage with the normative percentage of

the interrelated ratios is given below:

Working Capital as on 31-03-2016 is Rs.43018.29 . (Rs. In Lakhs)

Sr.

No.

Particulars Amount % As per

Norms

Actual % Remarks

1 Share Capital 588.58 2 to 4 1.36 Below Norms

2 Reserve & Other Funds 3440.48 4 to 6 8.00 Above Norms

3 Deposits & Borrowings 37937.63 80 to 85 88.19 Above Norms

4 Other Liabilities 1047.84 2 to 3 2.43 As per Norms

5 Net Profit incl. previous

years

287.70 1 0.66 Below Norms

6 Cash & Bank Balances 2941.77 4 6.83 Above Norms

7 Investments 15454.60 25 35.93 Above Norms

8 Advances 23376.84 65 54.34 Below Norms

9 Fixed Assets 353.33 6 0.82 Below Norms

Comparing with the norms there is scope for increasing Share Capital, Net profit, Advances,

Fixed Assets.




Comparing with the norms the investments are much more than norms. Bank should

decrease the Investments and make the advances which results into profit.

24. ACCOUNTIG POLICIES:-

The accounting policies adopted by the Bank are enclosed separately as a part to Balance

sheet.

25. CONTINGENT LIABILITIES:-

Bank guarantees issued by bank are to the extent of Rs.69.65 Lakhs .

Income Tax Assessment Dues against which appeals are filed with the Higher authorities

aggregating to RS.21,45,510/-. Decision Pending.

As per RBI directives amount of Rs. 94,20,350.77 lying in DEAF account is required to be

shown as Contingent Liability.

26. COMPUTER SOFTWARE SYSTEMS:-

a. The bank has fully computerized its operation.

b. It had installed hardware and software as per its requirement.

c. All statutory records are not linked to software fully; therefore bank has

maintained some of the records manually, Which are as follows :

1. TDS Register.

2. Service Tax and cenvat credit.

3. Profession Tax, Provident Fund.

d. The bank has not prepared and kept on record Disaster recovery plan. Bank has

installed a server at Janata Sah. Bank Indapur branch.

e. Bank has not fitted smoke and water detectors in all the premises.

f. Specific computer training programs were not conducted by the bank.

Software should generate all necessary returns, forms, information and documents

required under The Maharashtra Co-operative Societies Act 1960 and The Banking

Regulation Act, 1949 and Rules there under.

27. R BI, CO-OP DEPT. AND OTHER BOARD COMMUNICATION:-

The following position was noticed regarding the Returns sent to the RBI and Co. Op.

Department during the course of audit:

a. Submission of Monthly Returns to RBI/DDR---- 01.04.2015 TO 31.03.2016.




Sr.

No.

Periodicity Due Dates Date of Submission

1 MIS Return-DDR Before 3rd day

Following month

* April-2015 02.05.2015

* May -2015 03.06.2015

* June-2015 03.07.2015

* July-2015 03.08.2015

* August-2015 01.09.2015

* September-2015 03.10.2015

* October-2015 03.11.2015

* November-2015 03.12.2015

* December-2015 02.01.2016

* January-2016 03.02.2016

* February-2016 03.03.2016

* March-2016 02.04.2016

2 Special Return-as of last Friday

constitution wise dep.-

10th day

Following month

* April-2015 06.05.2015

* May -2015 03.06.2015

* June-2015 07.07.2015

* July-2015 08.08.2015

* August-2015 09.09.2015

* September-2015 09.10.2015

* October-2015 10.11.2015

* November-2015 08.12.2015

* December-2015 05.01.2016

* January-2016 03.02.2016

* February-2016 09.03.2016

* March-2016 07.04.2016

3 Form 1:(Demand and Time liabilities

along with Appendix I and II ( Sec.18

and 24(3) Rule 5) – DDR

20thof Subsequent

month

* April-2015 06.05.2015

* May -2015 06.06.2015

* June-2015 06.07.2015

* July-2015 14.08.2015

* August-2015 09.09.2015

* September-2015 15.10.2015

* October-2015 16.11.2015

* November-2015 11.12.2015

* December-2015 15.01.2016

* January-2016 04.02.2016

* February-2016 14.03.2016




* March-2016 16.04.2016

4 Form 2: Unsecured advance to

Directors (Sec.20(2)Rule 5)

20thof Subsequent

month

* April-2015 06.05.2015

* May -2015 06.06.2015

* June-2015 06.07.2015

* July-2015 14.08.2015

* August-2015 09.09.2015

* September-2015 15.10.2015

* October-2015 16.11.2015

* November-2015 11.12.2015

* December-2015 15.01.2016

* January-2016 04.02.2016

* February-2016 14.03.2016

* March-2016 16.04.2016

5 Form 9: Assets and Liabilities

Sec.27(i) Rule 9) As at last Friday of

every month

Last day of

Subsequent Month

* April-2015 16.05.2015

* May -2015 03.06.2015

* June-2015 08.07.2015

* July-2015 10.08.2015

* August-2015 09.09.2015

* September-2015 20.10.2015

* October-2015 20.11.2015

* November-2015 28.12.2015

* December-2015 15.01.2016

* January-2016 17.02.2016

* February-2016 21.03.2016

* March-2016 18.04.2016

6 CTR AND STR 15thof Subsequent

month

* April-2015 14.05.2015

* May -2015 06.06.2015

* June-2015 13.07.2015

* July-2015 10.08.2015

* August-2015 14.09.2015

* September-2015 07.10.2015

* October-2015 07.11.2015

* November-2015 08.12.2015

* December-2015 08.01.2016

* January-2016 10.02.2016

* February-2016 11.03.2016

* March-2016 18.04.2016

7 'Counterfeit Bank Notes Statement 7thof Subsequent




in Annexure V month

* April-2015 05.05.2015

* May -2015 05.06.2015

* June-2015 06.07.2015

* July-2015 06.08.2015

* August-2015 08.09.2015

* September-2015 06.10.2015

* October-2015 06.11.2015

* November-2015 07.12.2015

* December-2015 05.01.2016

* January-2016 06.02.2016

* February-2016 04.03.2016

* March-2016 07.04.2016

8 'Counterfeit Bank Notes Statement

in Annexure VI

7thof Subsequent

month

* April-2015 05.05.2015

* May -2015 05.06.2015

* June-2015 06.07.2015

* July-2015 06.08.2015

* August-2015 08.09.2015

* September-2015 06.10.2015

* October-2015 06.11.2015

* November-2015 07.12.2015

* December-2015 05.01.2016

* January-2016 06.02.2016

* February-2016 04.03.2016

* March-2016 07.04.2016

9 DEAF Scheme statements 15th of subsequent

month

* April-2015 22.06.2015

* May -2015 22.06.2015

* June-2015 N.A

* July-2015 22.08.2015

* August-2015 15.09.2015

* September-2015 15.10.2015

* October-2015 06.11.2015

* November-2015 08.12.2015

* December-2015 14.01.2016

* January-2016 11.02.2016

* February-2016 09.03.2016

* March-2016 06.05.2016

Submission of Quarterly Returns -01.04.2015 to 31.03.2016:-




Sr.

No.

Particulars Due

dates

June-15 Sept-15 Dec.-15 March-16

1 SLR Investment-%

with NDTL

Before 7th

of

following

month

07.07.2015 06.10.2015 05.01.2016 07.04.2016

2 Bank finance in

shares and

debentures (as of

last reporting

Friday of Quarter)

– DDR

Before

15th of

following

month

03.07.2015 12.10.2015 05.01.2016 12.04.2016

3 Bank finance

against shares

Before

15th of

following

month

10.07.2015 12.10.2015 05.01.2016 12.04.2016

4 Review Report on

Robbery

/Fraud/dacoit/etc.

Before

15th of

following

month

20.07.2015 12.10.2015 05.01.2016 16.04.2016

5 Violation of

Directives on

Maximum limit on

advances

Before

15th of

following

month

10.07.2015 12.10.2015 05.01.2016 12.04.2016

6 Form VI (a,b,c)-

(Sec.23,Rule*) -

DDR

Last day

of

Subseque

nt month

03.07.2015 12.10.2015 05.01.2016 12.04.2016

7 Advances granted

to director and

their relatives

Last day

of

Subseque

nt month

27.07.2015 27.10.2015 22.01.2016 27.04.2016

8 Investment of

funds by UCB with

other

UCB/institutions

Last day

of

Subseque

nt month

07.07.2015 12.10.2015 13.01.2016 16.04.2016

9 Off Site

Surveillance (OSS)

Last day

of

Subseque

nt month

27.07.2015 31.10.2015 22.01.2016 30.04.2016

10 Dispute of Bank’s

Premises

Last day

of

Subseque

nt month

10.07.2015 12.10.2015 05.01.2016 12.04.2016




11 Removal of

Director from

office

Before

10th of

Subseque

nt month

Subseque

nt month

07.07.2015 12.10.2015 05.01.2016 12.04.2016

12 ALM Within 30

days

24.07.2015 30.10.2015 21.01.2016 14.06.2016

13 Status report of

forged notes

vigilance cell

Within 15

days from

end of

quarter

10.07.2015 12.10.2015 16.01.2016 16.04.2016

C. Half Yearly Returns filed during the year 01.04.2014 TO 31.03.2015: -

Sr.

No.

Periodicity Due Dates Submission date

1 DICGC 31.05 30.04.2015

30.11 30.10.2015

2 Survey of Advance against sensitive

commodities

15.04 09.04.2015

15.10 08.10.2015

3 Interest rates on deposits 30.04 15.04.2015

30.10 08.10.2015

4 Credit flow to Minority communities 30.04 09.04.2015

30.10 09.10.2015

Yearly Return filed during the year 01.04.2015 TO 31.03.2016

Sr.

No.

Particulars Due Dates Submission

date

1 Dormant A/c-form no.VIII-Dec. 31.01.2016 30.01.2016

2 Certificate of Safe Custody of Specimen Signature 31.07.2015 10.07.2015

3 Advances to priority Sector 30.04.2015 09.05.2015

4 Classification of Advances NPA 20.05.2015 01.07.2015

5 Special Return Form IX as on 31st March 15.05.2015 07.05.2015

6 BS. P and L and audit report (3 Copies signed by 3

directors)Section 29and31 exemption from

publication

30.09.2015 10.08.2015

7 Copies of news papers in which B/s and P and L for

the year has been published

30.09.2015 30.09.2015

8 Statistical figures(provision)as of 31st March 30.06.2015 06.06.2015

9 Capital Risk Assets Ratio After

Statutory

Audit

10.08.2015




10 Share holding in other Co-op. societies 15.05.2015 08.05.2015

11 Specimen signatures of officials authorized to sign

the returns (Rule 5(i))

31.01.2016 19.01.2016

12 MSC Bank-annual statement as of 31st march 31.05.2015 08.05.2015

13 Urban Banks extension counters 31.05.2015 08.05.2015

14 Information of Balance Sheet items –Audited After

Statutory

Audit

01.09.2015

15 Audited NPA Statement After

Statutory

Audit

07.05.2015

Copy of annual review of fraud/dacoit/robbery by

the Board

15.05.2015 16.05.2015

17 Submission of DICGC- Form DI 31.05.2015 11.05.2015

18 St-1 to 10 Statement to RBI After

Statutory

Audit

13.10.2015

19 NABARD-ANR Statements 31.07.2015 N.A.

20 Name and Address of FNVC in annexure IV 31.07.2015 08.07.2015

21 LBT Return 30.06.2015 05.10.2015

22 Service Tax Return 25.04.2015 20.04.2015

23 Annual Information Return (AIR) u/s 285BA 31.08.2015 21.09.2015

Abbreviations :

1. DEAF : Depositor Education and Awareness Fund Scheme 2. CTR : Currency Transaction Report

3. STR: Suspicious Transaction Report

4. DICGC : Deposit Insurance and Credit Guarantee Corporation

5. ALM : Asset Liability Management

6. FNVC: Forged Notes Vigilance Cell

RBI Inspection :

As described earlier, RBI Inspection pertaining to the period upto 31-3-2015 was conducted

during the year. Bank has complied with some of the points raised in the report. Line of

Action suggested in the RBI Inspection Report and action taken by the bank is as follows:

LOI suggested by RBI

EDP / IS Audit : Issues in EDP report yet to be complied with

Compliance partially made by the bank.

Remark : IS audit of all branches is suggested to be made.

Migration Audit not conducted by the bank – Not Appplicable

Review of Customer profile and Risk category on regular basis . Independent check of

validation of STR information was not carried out at HO level.




At present monitoring is being done by HO. It is decided to develop a new software for

monitoring issues & Anti Money Laundering. Bank has recently started sending requisite

information under NTR to FIU India.

DAEF amount is shown in both Assets and Liabilities side instead of showing as contingent

liability : Shown as Contingent Liability

Provision for Interest on Matured Term Deposits not made : Provision is made on 31st

March 2016.

NDTL Computation not correct : Difference is due to Savings Interet.

ALCO committee consists of Director instead of executives : ALCO Committee consists of

only staff and does not have any Director.

28. BREACHES/AMENDMENTS OF ACT, RULES and BYE-LAWS:-

Copy of New Bye-Laws As Per 97th Amendment is attached separately as Annexure No-

11

The following amendments were noticed during the course of audit:-

Sr.

No.

Section Rule Bye-

Laws

Violation

1 - 30 A member may transfer his share or shares(where there shall

not be any accumulated losses) after holding them for not less

than one year to any other member of the bank duly approved

by the board. The transfer is not complete until the name of the

transferee has been duly entered in the register of members

and on payment of transfer feeas may be decided by the board

from time to time.( Presently Rs. 100) Transfer fee will not be

applicable in case of death claim.

2 - - 50 r (i)

To appoint staff within the delegated powers on

temporary/contract basis.

3 55(b) 2.5% of the borrowings in case of secured borrowings.

4 44(ff) To delegate the powers to Sub Committee , Director/s, Chief

Executive Officer or any other officer , employee for

investments/ disinvestments , approving/ sanctioning nominal

membership applications, loans and advances, appointment of

temporary/ contractual employees, filling or withdrawing

various suits against the concerned persons or for institute,

defend, compromise , conduct, abandon or withdraw any legal

proceedings by or against the bank or the board or its officers or

Employees: to prepare , sign and send the various returns under

the banking regulation act, cooperative societies act and

prescribed by various authorities in pursuance of legal




provisions of the time in force and for national and State

statistical purposes, to operate the Bank Account(s) of the bank.

FOR V.S.Sinnarkar & Associates

CHARTERED ACCOUNTANTS

( CA Veena Nagarkar )

PROPRIETOR

PLACE: PUNE

M.NO.

SHREE SHARADA SAHAKARI BANK LIMITED, PUNE




PART – B

(2015-16)

CAPITAL AND LIABILITIES

1. SHARE CAPITAL:-

Authorized Share Capital of bank is Rs. 1000 Lakhs divided into 520000 shares of Rs.25

each amounting to Rs 1,30,00,000 and 87000 shares of Rs.1000 each amounting to

Rs.8,70,00,000. Subscribed, issued and paid up capital is Rs. 588.58 Lakhs as on

31.03.2016. Compared to last year there is a net increase in Share Capital by Rs. 44.85

Lakhs.

2. RESERVES FUND AND OTHER RESERVES:-

Total Reserve and Surplus as on 31.03.2015 are Rs.3040.86. There is an increase in

Reserve and Surplus by Rs.399.62 Lakhs. Hence balance of Reserves as on 31.03.2016 is

Rs. 3440.48 Lakhs. Following are the details of various Reserves and Surplus.

(Rs. in Lakhs)

Sr.

No.

Particulars As on

31/03/2015

As on

31/03/2016

+ or - %

A Statutory Reserve Fund 829.71 969.35 139.64 16.83%

B Building Fund 677.16 825.55 148.39 21.91%

C Bad & Doubtful Debts Reserves 508.90 563.83 54.93 10.79%

D Dividend Equalization Fund 45.58 47.88 2.30 5.05%

E Charity Fund 5.25 5.50 0.25 4.76%

F Staff Welfare Fund 17.01 17.51 0.50 2.94%

G Members Welfare Fund 26.30 29.00 2.70 10.27%

H Investment Fluctuation Fund 350.85 350.85 - 0.00%

I Technology Development Fund 160.00 172.00 12.00 7.50%

J

Provision against Standard

Assets

198.47 231.00 32.53

16.39%

K Special Reserves 43.02 50.17 7.15 16.62%

L Provision for Impaired Assets 0.78 - -0.78 100.00%

M Investment depreciation

Reserve 177.83

177.82 -0.01

0.00%

TOTAL:- 3,040.86 3,440.46

399.60 13.14%

Detailed additions are attached in Annexure No-12




3. DEPOSITS:

Total Deposits are Rs.35,840.85 Lakhs as on 31.03.2015 there is an increase in Deposits

by Rs.2096.78 Lakhs. Balance of Deposits as on 31.03.2016 is Rs. 37937.63 Following are

the details of various Deposits along with comments thereon.

(Rs. In Lakhs)

Particular As on Difference

(+) or (-)

Percentage

31.03.2015 31.03.2016

Current Deposits and

Cash Credit

1,933.01

1,995.62

62.61 3%

Saving Deposits

6,661.25

7,173.62

512.37 8%

TOTAL:-

8,594.26 9,169.24

574.98 7%

Term Deposits

27,246.59

28,768.36

1,521.77 6%

TOTAL:-

35,840.85

37,937.60

2,096.75 6%

There is an increase in all types of deposit accounts but due to large increase in term

deposits of high cost, cost of funds of the Bank is increased, resulting in decreasing

profitability of the bank.

Therefore bank should take more efforts to increase the Savings and Current Deposits.

As informed by bank officials, inoperative accounts are automatically identified by the

system and frozen in the system and can only be operated by Officer level personnel.

4. OVERDUE INTEREST RESERVE:-

The Overdue Interest Reserve is Rs. 66.33 Lakhs, which is the amount of interest

receivable on the loans and advances accounts which are classified as Non Performing

Assets (NPA) by the Bank.

Such interest of NPA identified accounts included in interest Receivable A/c as on

31.03.2015 was Rs.70.91 Lakhs and have decreased by Rs. 4.07 Lakhs.

5. OTHER LIABILITIES AND PROVISION:-

Other Liabilities and Provisions are Rs.992.87 Lakhs as on 31.03.2015

There is increase in Other Liabilities and Provisions by Rs.639.65 Lakhs.

Hence balance of other liabilities as on 31.03.2016 is Rs. 1632.52.

Following are the details of various Other Liabilities and Provisions along with comments

thereon:




(Rs. In Lakhs)

Particulars As on As on Difference

31.03.2015 31.03.2016

(+) or (-)

Pay slip Payable

120.91

92.30

-28.61

Surcharge Payable

-

-

-

TDS Payable

0.30

39.34

39.04

Sevice tax payable

0.01

-

-0.01

Professional Tax

0.22

0.20

-0.02

Provision

29.12

35.53

6.41

Dividend Payable

9.02

14.26

5.24

Interest Payable on Deposits

1.29

12.48

11.19

Provision for Income Tax 08-09

110.00

110.00

-


73.00

73.00

-


97.00

97.00

-


104.45

104.45

-


134.14

134.14

-


72.70

72.70


133.72

133.72

-


-

159.15

159.15

Provision for FBT : 06-07

1.03

-


1.18

-


1.20

-

OTHER LIABILITIES

-

Locker Rent Received in advance

-

-

Anamat

6.42

1.95

-4.47




Bank Guarantee Commission Received in

Advance

1.22

0.34

-0.88

Suspense Anamat –II

2.33

2.30

-0.03

Branch Adjustment

0.02

0.40

0.38

Vendors Security Deposit

-

-

PF Contribution

3.79

3.82

0.03

Locker rent due for collection

0.04

0.03

-0.01

Difference in Clearing

-

-

Creditors

0.20

-

-0.20

DAEF Payable to customers

89.57

-

-89.57

TOTAL:-

992.87

1,632.52

639.65

i. Provisions:

The details of provisions payable are as below.

Sr.No Particulars Amount

1 PMC Tax/ Rent 8,341.00

2 Premises & Taxes 9,12,009.00

3 Computer Expenses 2,31,624.48

4 Printing & Stationary 25,128.00

5 Internal Audit Fees 93,625.00

6 Statutory Audit Fees 5,20,325.00

7 Salary & Allowances 1,45,131.85

8 Telephone & Connectivity 62,942.00

9 Electric Bill 91,745.00

10 Education Fund 2,65,000.00

11 Professional Charges 1,27,962.50

12 Vendor 67,000.00

16 Security Expenses 19,800.00

20 Meeting/training exp 15,000.00

21 NPCI Charges 9,67,777.80

Total 35,53,411.63

ii. Dividend payable/Unclaimed Dividend:




The details are as below.

(Rs. In Lakhs)

Particulars Amount

Payable for the year 2012-13 3.07



TOTAL:- 14.27

iii. Interest Payable on Deposits:-

This head includes interest payable on the following heads of deposits.

(Rs. In Lakhs)

Sr.

No.

Particulars Amount

1. Fixed Deposit 12.48

2. Short Term Deposit 0

TOTAL:- 1.29

Interest Payable on Fixed Deposit and Term deposit:-

In case of Fixed Deposits and term deposits, where standing instructions are given by

the depositors for transfer of their monthly /quarterly interest to their specified

accounts, the Bank transfers the said interest to said accounts and shows it as

expenditure under the head Interest on Deposits.

iv. Anamat Payable:

Anamat Payable is Rs. 4.25 Lakhs as on 31.03.2016

This head includes various items such as Tender Deposits and Other Payables which are

not been claimed by the respective persons and also unadjusted credits in the

borrowers account.

ASSETS AND PROPERTIES

6. CASH AND BANK BALANCE:-

Following are the details of various Cash and Bank Balances:

(Rs. In Lakhs)




Particulars As on 31.03.2015 As on

31.03.2016

Difference (+)

or (-)

Cash in Hand 297.28 232.24 -65.03

Balance with Banks 2047.69 2709.53 661.84

TOTAL:- 2344.97 2941.77 596.81

Cash in Hand as on 31.03.2016 is Rs.232.24 Lakhs which has been decreased by Rs. 65.03

Lakhs as compared to the last year 2014-15.

Balances with other banks in various current and saving accounts as on 31.03.2016 are

Rs.2709.53 Lakhs which has been increased by Rs. 661.83 Lakhs as compared to the year

ended on 31.03.2015

The bank balance confirmation certificates are received and the same are reconciled with

the bank reconciliation statements.

7. INVESTMENTS:-

Investment in Fixed Deposits, Government Securities and Shares- PDCC and MSC Bank are

Rs. 16,601.49 Lakhs as on 31.03.2015. There is an increase of Rs.2721.28 Lakhs as

compared to year ended 31.03.2014.

Following are the details of various investments:

(Rs. In Lakhs)

Particulars As on

31.03.2015

As on

31.03.2016

Difference +

/(-

Fixed Deposits 4,985.24 4148.66 -836.58

Govt. Securities 1,1113.11 10308.74 - 804.37

Shares and Mutual Fund and Non SLR Bonds 503.14 997.20 494.06

TOTAL:- 16,601.49 15,454.60 -2,721.28

-Shares:

Following are the details of the shares held by the bank as on 31.03.2016

(Rs. In Lakhs)

Particulars Amount

Maharashtra State Co-op. Bank 0.10

P.D.C.C.Bank,Pune 3.00

TOTAL:- 3.10

-Fixed Deposits:

Following are the Bank-wise details of the Fixed Deposits held as on 31.03.2016

(Rs. In Lakhs)

Sr.

No.

Particulars Amount

1. Nationalized Banks 382.48

2. Commercial Banks 373.55




3. Co-op Banks 3392.61

TOTAL:- 4148.64

There are no earmarked deposits as on 31st March 2016.

(Rs. In Lakhs)

Sr.No Particulars Reserve and Fixed Deposit

or Fund Amount Amount

1 Fixed Deposit which are Earmarked :

Reserve Fund 969.35 0

Building Fund 825.55

Dividend equalization Fund 47.88

Staff Welfare Fund 17.51

Bad and Doubtful Fund 563.88

Charity Fund 5.50

Member Welfare Fund 29.00

Technology Development Fund 172.00

Investment Fluctuation Fund 350.85

Investment Depreciation Fund 177.83

Special Purpose Reserve 50.17

Provision for Std.Assets 231.00

Provision for other impairments 00.

Total (1) 3440.48

2 GOI/SDL Secuirty Which are not Earmarked :

a) SDL Secutity 0.00

Total (2) 0.00

3 Fixed Deposit Which are not Earmarked :

a) PDCC Bank Pune 0.00 0

b) Nationalized Banks 0.00

c) Commercial Banks 0.00

d) Co-operative Banks 0.00




Total (3) 0.00

Grand Total (1+2) Earmarked Only 3440.48

Grand Total (1+2+3) 3440.48

Reserves created are properly invested in ear-marked Fixed Deposits in all the cases.

-Government Securities:

Central and State Government Securities as on 31.03.2016 are Rs.10308.74 Lakhs (Face

Value Rs.10532.28 Lakhs) which are reduced by Rs.804.36 Lakhs as compared to year

ended on 31.03.2015.

List of these Government Securities in hand as on 31.03.2016 is as follows

(Rs. In Lakhs)

Statement showing GOI Prices - as on 31.03.2016

(ALL SECURITIES ARE IN 'AFS' CATEGORY)

Sr.

No Particulars F.V. B.V. Remark

State Govt. Development Loan

1 7.17 MSDL 2017 20 18.32

2 9.12 GJ SDL 2022 100 101.53

3 9.13 GJ SDL 2022 100 101.57

4 8.88 GJ SDL 2022 100 99.92 All Held in SGL A/c With

5 8.96 WB SDL 2022 275 275.87 HDFC Bank

6 9.04 WB SDL 2021 100 100.67

7 8.92 WB SDL 2022 142 142.57

8 9.01 WB SDL 2022 333 334.17

9 9.03 WB SDL 2022 100 100.29

10 8.91 WB SDL 2022 115 116.09

11 8.81 WB SDL 2021 200 201.64

Total 1585 1592.64

Central Govt. Securities

1 10.71 GOI 2016 100 100.07

2 8.07 GOI 2017 150 150.37

3 7.49 GOI2017 50 48.89

4 6.01 GOI 2028 0.046 0.036

5 5.69 GOI 2018 100.03 82

6 6.05 GOI 2019 250 212.93

7 7.40 GOI 2035 1200 1146.62




8 7.59 GOI 2016 50 49.94

9 8.33 GOI 2036 300 302.94

10 7.99 GOI 2017 200 200.53

11 7.95 GOI 2032 250 251.46

12 7.46 GOI 2017 100 98.81

13 6.05 GOI 2019 feb 200 185.18

14 7.49 GOI 2021 50 50.16

15 7.35 GOI 2014 1325 1303.4

16 8.28 GOI 2032 550 544.24

17 7.50 GOI 2034 325 298.48

18 8.30 GOI 2040 997.2 984.85

19 8.24 GOI 2027 100 99.3

20 8.26 GOI 2027 850 831.12

21 8.28 GOI 2027 100 96.42

22 8.07 GOI 2017 100 98.8

23 7.16 GOI 2023 300 288.58

24 7.59 GOI 2029 300 299.28

25 7.73 GOI 2034 600 592.15

26 7.72 GOI 2025 400 399.66

Sub Total 8947.276 8716.216

Total A 10532.28 10308.86

B. (Following Securities Are In 'AFS' Category)

27 7.16 GOI 2023 300 288.58

28 7.35 GOI 2024 1300 1280.27

29 7.40 GOI 2035 1000 965.1

30 7.59 GOI 2029 300 299.28

31 7.73 GOI 2034 600 592.15

32 7.72 GOI 2025 400 399.66

Total B 3900 3825.04

A+B Total 14432.28 14133.9

Investment in Govt. Securities is above 25% of NDTL. Most of the investments in

Government Securities are classified under Held to Maturity (HTM) category and some are

classified under Available for Sale (AFS) category by the Bank.

Bank pays investment consultancy fees @0.005% of Face Value of the transaction.




8. LOANS AND ADVANCES:-

Advances are Rs.23376.84 Lakhs as on 31.03.2016. There is an increase in Advances by

Rs.3175.20 Lakhs. Following are the details of various Advances:

The break-up of the advances as at the year end is as follows

(Rs. In Lakhs)

Sr. No. Type of Advances As on

31.03.2015

As on

31.03.2016

Difference

(+) or (-)

1 Short Term Loans – Secured 5,111.86 6,271.08 1,159.22

2 Medium Term Loan - Secured 5,825.91 5,785.24 -40.67

3 Long Term Loans - Secured 8,811.63 10,671.71 1,860.08

4 Unsecured Loans 452.23 648.80 196.57

TOTAL:- 20,201.63 23,376.83 3,175.20

Ratio analysis on loans and advances (As per Balance Sheet):

Sr.No Particulars Ratios

1 Short Term Loans to Total Loans 26.82

2 Medium Term Loans to Total Loans 24.75

3 Long Term Loans to Total Loans 45.65

4 Unsecured Loans to Total Loans 2.76

Total 100.00

1 Secured Loans to Total Loans 97.24

2 Unsecured Loans to Total Loans 2.76

Total 100.00

a. The Bank should compare the maturity pattern of deposits with loans from the

liquidity point of view.

b. The above classification shows that the major portion of the advances is of Long

Term loans which are 45.65% of the total advances.

Figures as of 31-3-2016 shows that there is considerable increase in CC against

Deposits and Unsecured Loans as compared to 31-3-2015. Hypothecation loans

have also increased by 13.85% .

c. Bank should obtain latest valuation reports from Approved Govt. Valuers showing

basis and calculations considered for valuation of assets taken as security.




Classification regarding secured and unsecured should be made as per RBI

guidelines.

d. Bank should make efforts to increase the lending and also increase long term

finance considering the maturity pattern of deposits with loans.

Loans to Directors and Relatives:

Total amount outstanding against loans to directors and their relatives as on

31.03.2016 was Rs.399.59 Lakhs. Loans to directors are given against security of fixed

deposit and the bank has kept proper margin while advancing such loan. We have

relied on the information and list of directors and their relatives to whom loans given

and/outstanding provided by the management.

Advances to Priority Sector:

As per the information provided by the Bank to the RBI, regarding advances to priority

sector and weaker section, position as on 31.03.2016, is as follows:

(Rs. In Lakhs)

Sr.

No.

Particulars

Amount %

1. Total Loans and Advances 23376.84 -

2. Total ANBC (Last Year) 20701.67 -

3. Advances to Priority sector 8764.92 37.49%

4. Advances to weaker section 1785.94 7.64%

As per the guidelines issued by the RBI on lending to Priority Sector, Target set for

lending to priority is 40% of Last year’s Adjusted Net Bank Credit (ANBC). ANBC is

higher of,

1. Total loans and advances minus bills rediscounted with RBI and other approved

financial institutions plus investment made in non-SLR bonds (Under HTM Category),

OR

2. Credit equivalent amount of off balance sheet exposures (OBE).

As per the information provided by the bank, net ANBC works out to Rs.20701.67.

Lakhs. And accordingly target for Priority Sector Rs.8764.92 Lakhs (37.49% of ANBC).

Also bank advance to weaker sections is less than 10 % of the ANBC.

Bank should strictly follow the RBI guidelines for classification of advances as Priority

Sector and Weaker Sector.

FOLLOWING ARE THE MAJOR OBSERVATIONS, COMMENTS AND SUGGESTIONS:

IN CASE OF LOANS, ADVANCES AND, OTHER CREDIT FACILITIES AND RELATED

INTERNAL CONTROL SYSTEMS.




A. APPRAISAL:-

Bank officials should comply with following points before sending files, documents to

Head Office for sanctioning.

Following are the major observations where the bank officials have not observed

strictly the guidelines mentioned in Loan Policy of the bank, Co-operative Societies

Act and Rules as applicable to Banks and RBI Circulars and guidelines-

a. In some loan accounts it is observed that Registration Certificate, Shop Act

License, Photograph, address proof, latest income papers of the borrower and /or

guarantors are not taken.

b. In some of the cases where the advances to the non corporate borrowers exceed

Rs 10 Lakhs , borrower’s financial statements or income proofs are not taken and

wherever taken are neither attested/verified by the Chartered Accountant and in

other cases nor by the branch officials In many cases Financial Statements are

certified by `Certified Auditors ‘ and not by Chartered Accountants.

c. The financial statements submitted by borrowers are not properly analyzed and

financial weaknesses prevailing in them were not brought out in appraisal note.

Bank had also not insisted for the certificate of Chartered Accountant for

induction of capital by the promoters.

d. Bank does not have proper system for assessing net worth and track record of

borrower and/or guarantors. The registration from Credit Information Companies

should be obtained.

e. Requirement of Working Capital is not properly worked out in CC accounts.

Security aspect is only taken into account and not actual requirement. Regard

shall be had to nature of business, size of business, work orders in hand, activities

involved, current market trend and such other factors.

Cash credit limits sanctioned against the mortgage of property had no relevance

to the size and nature of business, net owned funds of borrowers and sales

/Turnover. In some cases, cash credit limits are sanctioned to the borrowers, who

do not require such cash credit limits for the type of business carried out by them.

f. In various new loans cases/increase in limits bank has not taken Project Reports

and proper justification for enhancement in limit asked by the borrower. At the

time of review / renewal of limit project report should be compared with actual

financial statements submitted by the borrower.

B. POST SANCTION COMPLIANCES AND MONITORING:




Bank officials should comply with following points with the guidelines as mentioned

in the Loan policy of the Bank, after sanction is received from Head Office.

Following are the major observations where the bank officials have not observed

strictly the guidelines mentioned in Loan Policy of the bank, Co-operative Societies

Act and Rules as applicable to Banks and RBI Circulars and guidelines. (Ref.RBI Master

Circular on Management of Advances –USB):

a. All the terms and conditions mentioned in sanction letter should be complied with

and then only disbursement should be given.

b. In majority of the cases, branch has not obtained NOC/confidential Report from

other banks/financial institutions/societies from whom the borrower has already

taken any loans.

c. In case of securities mortgaged with the bank since more than 3 years, the bank

should insist for Valuation and Search Survey Report of the mortgaged property at

least once in every three years for assuring the safety of the security.

d. In most of the cases Debt Service Coverage Ratio is not calculated / considered at

the time of sanction of term loan.

e. The bank had also not introduced STOCK AUDIT of stock of large borrowers with

C/C limit of more than Rs.25.00 Lakhs.

f. The review / renewal of credit proposal were undertaken only on the basis of

application made for renewal and security available. Audited financial statements

pertaining to the earlier years, tentative /provisional financial statements for the

period from earlier audited statements till date of renewal were not obtained.

* DIVERSION OF FUNDS, WILFUL DEFAULTER AND NON VERIFICATION OF END USE:-

As per the RBI Circular, bank should not allow diversion of funds, should confirm end

use. In some of cases, the above practice is found in the banks working, where bank

has allowed diversion of funds, siphoning of funds, non-confirmation of end-use.

Following are the occurrences which are treated as Diversion and Siphoning of

Funds:

• Utilization of short term working capital funds for Long term purpose.

• Utilization of funds for purpose of creation of assets other than those for which the

loan has been sanctioned.

• Transferring funds to the subsidiaries / group companies / other entities by

whatever modalities.

In few of cases, bank has not verified end use of the loan and / advances sanctioned

and disbursed.




Bank does not have effective system of verifying end use. It was observed that in

some cases the loans/ advances, facilities are taken to clear/pay earlier loans.

9. INTEREST RECEIVABLE ON INVESTMENT:

(Rs. In Lakhs)

Sr.

No.

Particulars Amount

1. On Government Securities 178.23

2. On Fixed Deposits 17.23

3. On Non SLR Bonds 33.31

TOTAL: 228.77

10. PREMISES:

Value of premises owned by the bank as on 31.03.2016 is Rs.149.51 Lakhs. Following

are the details of various premises

(Rs. In Lakhs)

Sr.

No.

Name of

Premises

Amount as

on

31.03.2015

Amount as

on

31.03.2016

Difference

+/(-)

1 Head Office 48.63 43.78 -4.85

2 Sadashiv Peth 53.05 47.73 -5.32

3 Katraj-Kondhwa Road 64.45 58.00 -6.45

-

TOTAL 166.14 149.51 -16.63

11. FURNITURE, DEAD STOCK, LIABRARY AND OTHER ASSETS

These are of Rs.203.98 Lakhs as on 31.03.2015.There is an addition of Rs.46.83 Lakhs

made during the year.

(Rs. In Lakhs)




Sr.

No. Name of The asset

Bal as on

31.03.2015

Bal as on

31.03.2016

Increase/

(Decrease) Depreciation

%

additions

1 Furniture & Fixtures 94.10 84.61 -0.09 9.40 0%

2 Office Equipments 50.31 43.68 1.56 8.19 3%

3 Vehicles 6.22 8.81 3.74 1.15 60%

4 Safe Deposit Vault 19.63 21.47 4.14 2.30 21%

5 Computer 33.52 45.26 44.44 32.70 133%

TOTAL 203.78 203.83 53.79 53.74

12. BRANCH ADJUSTMENTS

The branch and head office net receivables Credit balance is Rs.0.04Lakhs. The same is

reconciled and found to be correct.

(Rs. In Lakhs)

In HO Books (CR) In Branch Books (DR) Dr/Cr

1 Satara Road Branch 3,737.69 3,737.69 -

2 Pashan Branch 3,908.12 3,908.12 -

3 Sadashiv Peth Branch 1,763.49 1,763.49 -

4 Shaniwar Peth Branch 3,084.65 3,084.65 -

5 Bibwewadi Branch 2,320.88 2,320.51 0.37

6 Sinhgad Branch 294.13 294.10 0.03

7 Katraj-Kondhawa -478.50 -478.50 -

TOTAL:- 14,630.46 14,630.06 0.40

The above table reveals that:

a. Net Total Payable to Branches as per the Books of Head Office is Rs.14630.46 Lakhs

and Net Total Receivable from Head Office as per the Books of the Branches is

Rs.14630.06 Lakhs. There is difference of Rs. 0.40 Lakhs i.e. Net payable to branches by

the HO.




13. OTHER ASSETS:

Details of Other Assets as on 31-3-2016 are as below:

3 Employees Festival

Advance

2,18,366.00 2,55,975.00 37,609.00 17%

4 Locker Rent Receivable 3,600.00 3,000.00 -600.00 -17%

5 Gratuity Receivable 6,69,142.00 - -6,69,142.00

6 Prepaid Expenses 3,14,899.00 14,10,475.00 10,95,576.00 348%

7 M.S.E.B.Deposit 53,460.00 89,840.00 36,380.00 68%

8 Telephone & Other

Deposit

79,188.00 71,157.50 -8,030.50 -10%

9 Stamp on hand 77,414.00 1,11,818.00 34,404.00 44%

10 Stock of printing &

stationery

7,52,389.41 8,29,394.53 77,005.12 10%

11 Gas Deposit 850.00 - -850.00 -100%

12 Other assets & advances 1,29,016.72 23,182.34 -1,05,834.38 -82%

13 Income Tax Receivable 74,973.00 74,973.00 - 0%

14 Advance against work

order

5,90,989.00 2,40,450.00 -3,50,539.00

15 Library Books 19,817.00 19,048.00 -769.00

16 DAEF receivable from

RBI

91,46,218.00 2,45,971.23 -89,00,246.77

TOTAL:- 1,29,19,666.18 41,21,863.89 -87,97,802.29 -68%

INCOME TAX:




A. It is stated that Income Tax assessment for the A.Y. 2011-12 is pending at ITAT.

for AY 2011-12, Bank has preferred an appeal to Pune Income Tax Appellate Tribunal

(ITAT) against the order passed by the CIT (Appeals)-A, Pune. The Income tax amount

demanded by the department is Rs 20,78,250/- This liability is contingent in nature.

B. For A.Y. 2012-13 , notice u/s 143(2) is received after expiry of time period ,

therefore bank raised objection against this before assessing officer.

C. For A.Y.2013-14 demand of Rs. 67260/- is raised by the Department, against which

appeal is submitted to C.I.T. Scrutiny u/s 143(3) is in process before the assessing

officer.

D. For A.Y.2014-15 : Bank has filled revised return on 14.10.2015.Notice u/s 143(2) for

assessment received. The tax audit report and annual report of the bank submitted

to ITO on 23/10/2015 as desired by them further response from the concerned is

awaited.

E. For A.Y.2015-16 : Bank has filed revised I.T Return on 14-10-2015.

16. OTS SCHEME:

a. Board of Directors of bank has approved OTS scheme-II-2015 in the meeting held on

30.01.2015

Under OTS scheme 9 overdue borrowers’ applications were approved who were

NPA accounts or Doubtful or Loss accounts as on 31.03.2011. However only 2 overdue

accounts were closed up to 31.03.2015

PROFIT AND LOSS ACCOUNT

1. PROFIT/ LOSS FOR THE YEAR: -

Profit for the year is Rs.287.70 Lakhs.

Branch-wise profit of the Bank is as under:

(Rs. In Lakhs)




Sr.No. Branches Profit /

(Loss)-

2014-15

Profit /

(Loss)-

2015-16

Difference Percentage

1 Head Office -206.56 -318.56 -112.00 -54%

2 Satara Road Branch 89.67 92.32 2.65 3%

3 Pashan Branch 82.71 45.47 -37.24 -45%

4 Sadashiv Peth Branch 171.29 212.34 41.05 24%

5 Shaniwar Peth Branch 113.85 112.35 -1.50 -1%

6 Bibwewadi Branch 54.65 34.26 -20.39 -37%

7 Sinhgad Road 41.78 79.87 38.09 91%

8 Katraj-Kondhwa 2.95 29.64 26.69 -905%

TOTAL:- 350.34 287.70 -62.64 -18%

2. APPROPRIATION OF PROFIT-2014-15:

The details appropriation of Profit for last year 2014-15 as approved by Annual General

Meeting is as under:

(Rs. In

Lakhs)

Particulars Balance Amount

Balance of last year’s profit 0.01

Profit of the year-2014-15 350.36

Appropriations:

Reserve Fund 135.00

Building Fund 135.00

Dividend Equal Fund 2.30

Member Welfare Fund 2.70

Staff Welfare Fund 0.50

Charity Fund 0.25

Dividend Payable 62.60

Technology Development Fund 12.00

Profit C/f next year. 0.02

TOTAL:- 350.37 350.37

The appropriations mentioned above have been sanctioned by the General Body in Annual

General Meeting held on 19th September 2014.

3. INCOME RECEIVED: -

(Rs. In Lakhs)




Sr.No. Particulars 2014-15 2015-16 Increase /

(decrease)%

1 Interest On Loans 2,519.99 2,721.07 201.08 7.98%

2 Interest On Investments 1,302.40 1,338.67 36.27 2.78%

3 Dividend on bank Investments 64.85 37.46 -27.39 -42.24%

4 Commission & Charges 14.88 16.02 1.14 7.63%

5 Income from Treasury Operation 42.38 51.32 8.94 21.10%

6 Other income

- Sale of Loan Application Form 1.29 1.44 0.15 11.67%

- Safe Deposit Vault Rent 15.27 15.74 0.47 3.06%

- Other Receipts 123.33 152.46 29.13 23.62%

- Profit on Sale of Assets 0.27 0.38 0.11 38.90%

- Prior Period Items of Profit & -0.19 - 0.19 -100.00%

TOTAL:- 4,084.48 4,334.56 250.08 6.12%

- There is increase in Interest earned due to increase in advances.

- There is increase in Interest earned on investments due to increase in investments.

- Overall increase in income is 15.03% as compared to last year.

4. EXPENDITURE: -

(Rs. In Lakhs)




Sr.No. Particulars 2014-15 2015-16 Increase /

(decrease)

percentage

1 Interest and Discount Paid 2,779.84 2,916.30 136.46 4.91%

2 Commission 2.56 2.18 -0.38 -14.72%

3 Salaries & Allowances 465.54 486.97 21.43 4.60%

4 Meeting Expenses 5.26 5.56 0.30 5.73%

5 Rent, Rates & Taxes 47.51 51.72 4.21 8.86%

6 Repairs & Maintenance 26.83 15.41 -11.42 -42.57%

7 Electric Expenses 11.66 13.75 2.09 17.91%

8 Depreciation 75.38 70.43 -4.95 -6.56%

9 Insurance 35.76 39.28 3.52 9.83%

10 Legal Advisor Fee 7.40 4.47 -2.93 -39.56%

11 Provision for Income Tax 133.72 159.15 25.43 19.02%

12 Other Sundry Expenses 20.22 22.51 2.29 11.33%

13 Special Purpose Reserve 8.00 - -8.00 -100.00%

TOTAL:- 3,619.69 3,787.73 168.04 4.64%

NET PROFIT: 350.34 287.70 -62.64 -17.88%

- The interest on deposits increased due to increase in high cost deposits.

- Advances are not increased in comparison with the increase in deposits.

5. OTHER POINTS:

• Gross NPA % to total loans outstanding is 1.58%, there is a decrease in NPA % as

compared to last year’s 1.76%, yet bank has to take extra efforts to bring down this

percentage to 1% or even less.

• Bank has appointed brokers for consultation while making Investment in

Government Securities. But bank has not followed maximum limit fixed to each

broker.

Details thereof as under: 01.04.2015 to 31.03.2016

(Rs. In lakhs)

Sr.

No Deals Consultant's Name Face Value Book value

% to total

turnover

1. 08 Tipson Financial Pvt. Ltd. 1100.00 1083. 5.17

2. 18 Quant Broking Pvt. Ltd. 3100 3104.98 14.55

3. 11

Excel Debt Broking Pvt.

Ltd. 1300 1287.54 6.10

4. 13 Trust Capital Ser Pvt. Ltd. 2000 1983.56 9.39

6. 1 Karvy Stock Broking Ltd 100 99.99 0.47

7. 72 GEPL Capital Pvt.Ltd 11500 11387 53.99

8. 10 Brics Securities Ltd. 1500 1482.67 7.04




9. 8 Anmol Finsec Ltd 700 687.69 3.29

141 Total 21300.00 21117.73 100.00

• Bank has granted many loans to Nominal Members. Total loans granted to

nominal members is Rs.7, 498.72 Lakhs which is 32.07% of total loans. Bank

should convert this nominal member to regular members and increase its

Capital base.

• Branch wise details of nominal members is as follows: (Rs. in lakhs)

Sr.No. Branch

No of

Nominal

Members

Loan to

Nominal

members

% to Total Loans

(23376.84 Lakhs)

1 Satara Road 123 894.95 3.83

2 Pashan 106 732.43 3.13

3 Sadashiv Peth 177 1399.47 5.99

4 Shaniwar Peth 151 959.06 4.10

5 Bibwewadi 146 581.74 2.48

6 Sinhagad Road 235 1819.27 7.78

7 Katraj-Kondhwa 122 1104.07 4.72

8 Head Office 33 7.73 0.03

TOTAL:- 1093 7498.72 32.07%

*As per RBI norms, bank is allowed to take nominal members up to 20% of total 'Regular

Members'. As on 31st March 2016 there are 1093 Nominal Members which constitutes

13.83% of total members of the bank.

• Statement showing CD Ratio:

Sr.

No

Particulars As on

31.03.2015

As on

31.03.2016

+ / - (%)

Increase/(

Decrease)

1 Total Loan and

Advances 20,201.63 23376.84 3175.21 15.72%

2 Total Deposits 35,840.85 37937.63 2096.78 5.85%

3 C.D Ratio 56.36% 65.22% 5271.99 8.86

There is increase in loan and advances by 15.72%. Deposits increased by 5.85%

during the year.




BUDGET FOR F.Y.2015-16:

The comparative statement showing budgeted and actual figures contained in the

Profit and Loss Account for the year 2015-16 reveals the differences. The details of

the variations are attached and explained in Annexure No-13 Attached.

FOR V.S.Sinnarkar & Associates

CHARTERED ACCOUNTANTS

( CA Veena Nagarkar )

Proprietor

DATE :

PLACE: PUNE

M.NO.

statutory audit reportpart a b final 15-16€¦ · v.s sinnarkar & associates chartered...

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