BalanceSheet 2011 - maharashtra gramin bank
BalanceSheet 2011 - maharashtra gramin bank
BalanceSheet 2011 - maharashtra gramin bank
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MAHARASHTRA GRAMIN BANK<br />
HEAD OFFICE: SHIVAJINAGAR, NANDED<br />
Particulars Schedule Position as<br />
on<br />
31.03.<strong>2011</strong><br />
(Amt. in thousand)<br />
Position as on 31.03.2010<br />
CAPITAL AND LIABILITIES<br />
Capital 1 30000 30000<br />
Share Capital Deposit Account 01 - A 1476862 1023462<br />
Reserves & Surplus 2 232268 232268<br />
Deposits 3 27433586 24577056<br />
Borrowings 4 1930155 1431213<br />
Other liabilities & Provisions 5 1070440 1040481<br />
TOTAL 32173311 28334480<br />
ASSETS<br />
Cash & Balance with RBI 6 2235954 1861168<br />
Balance with Bank & Money at Call & Short 7 5738090 5325664<br />
Notice<br />
Investments 8 8511097 7729351<br />
Advances 9 14018166 11926684<br />
Fixed Assets 10 93216 57074<br />
Other Assets 11 1350088 1434539<br />
Share Capital Dep. With Sponsor Bank 11 -A 226700 0<br />
TOTAL 32173311 28334480<br />
Contingent Liabilities 12 89790 73780<br />
Bills for collection 57383 152138<br />
Principal Accounting Policies 17 - -<br />
Notes on Accounts 18 - -<br />
The schedules referred to above form an integral part of the Accounts<br />
For Maharashtra Gramin Bank<br />
For M/s. Mandhana &<br />
Associates<br />
(Chartered Accountants)<br />
A A Magdum P R Mohanty A K R Singh P J Mishra Rajendra S Mandhana<br />
Chairman Chief General Manager General Manager Partner<br />
M No. 109511<br />
Place: Nanded<br />
F R N 121195W<br />
Date: April 15, <strong>2011</strong>
MAHARASHTRA GRAMIN BANK<br />
HEAD OFFICE: SHIVAJINAGAR, NANDED<br />
Particulars Schedule Current<br />
Year<br />
(Amt. in thousand)<br />
Previous Year<br />
INCOME<br />
Interest Earned 13 2256371 1750817<br />
Other Income 14 184383 170590<br />
TOTAL 2440754 1921407<br />
EXPENDITURE<br />
Interest Expended 15 1237416 991588<br />
Operating Expenses 16 969878 644798<br />
Provisions and contingencies - 111370 81423<br />
TOTAL 2318664 1717809<br />
PROFIT / LOSS -<br />
Net Loss ( - ) Profit (+) for the Year - 122090 203598<br />
Profit (+) /Loss (-) brought forward - 556463 682867<br />
TOTAL 434373 479270<br />
APPROPRIATION<br />
Transfer to Statutory Reserves - 8520<br />
Transfer to Special Reserves - 0 30000<br />
Transfer to Capital Reserves - 3798<br />
Transfer to Investment Fluctuation - 34876<br />
Balance carried over to Balance sheet - 434373 556463<br />
TOTAL 434373 479269<br />
For Maharashtra Gramin Bank<br />
For M/s. Mandhana &<br />
Associates<br />
(Chartered Accountants)<br />
A A Magdum P R Mohanty A K R Singh P J Mishra Rajendra S Mandhana<br />
Chairman Chief General Manager General Manager Partner<br />
M No. 109511<br />
Place: Nanded<br />
F R N 121195W<br />
Date: April 15, <strong>2011</strong>
MAHARASHTRA GRAMIN BANK<br />
HEAD OFFICE: SHIVAJINAGAR, NANDED<br />
Particulars<br />
As on<br />
31.03.<strong>2011</strong><br />
(Amt. in thousand)<br />
As on 31.03.2010<br />
Authorised Capital ( 5,00,000 Shares of Rs. 100 each ) 50000 30000<br />
Issued Capital ( 3,00,000 Shares of Rs. 100 each ) 30000 30000<br />
Subscribed Capital (3,00,000 Shares of Rs. 100 each ) 30000 30000<br />
Called up Capital ( 3,00,000 Shares of Rs. 100 each ) 30000 30000<br />
Less : Called Unpaid -- --<br />
Add : Forfeited Shares -- --<br />
TOTAL 30000 30000<br />
(Amt. in thousand)<br />
Particulars<br />
As on<br />
31.03.<strong>2011</strong><br />
As on 31.03.2010<br />
Share Capital Deposit Account 1476862 1023462<br />
Recapitalisation support received as under<br />
Central Government 738431 511731<br />
Sponsor Bank 516911 358211<br />
State Government 221519 153519<br />
Total 1476862 1023462
MAHARASHTRA GRAMIN BANK<br />
HEAD OFFICE: SHIVAJINAGAR, NANDED<br />
Particulars<br />
As on<br />
31.03.<strong>2011</strong><br />
(Amt. in thousand)<br />
As on 31.03.2010<br />
I Statutory Reserves 102911 102911<br />
Opening Balance 102911 94391<br />
Additions during the year 0 8520<br />
Deductions during the year 0 0<br />
II. Special Reserve 30000 30000<br />
Opening Balance 30000 0<br />
Additions during the year 0 30000<br />
Deduction during the year 0 0<br />
III Capital Reserves 21755 21755<br />
Opening Balance 21755 17957<br />
Additions during the year 0 3798<br />
Deductions during the year 0 0<br />
IV. Investment Fluctuation Resevre 77602 77602<br />
Opening Balance 77602 42726<br />
Additions during the year 0 34876<br />
Deductions during the year 0 0<br />
0 0<br />
V. Revenue and Other Reserves 0 0<br />
Opening Balance 0 0<br />
Additions during the year 0 0<br />
Deductions during the year<br />
0 0<br />
V. Balance in Profit & Loss Account 0 0<br />
Opening Balance 0 252246<br />
Additions during the year 0 0<br />
Deductions during the year 0 252246<br />
Grand Total 232268 232268
MAHARASHTRA GRAMIN BANK<br />
HEAD OFFICE: SHIVAJINAGAR, NANDED<br />
Particulars<br />
As on<br />
31.03.<strong>2011</strong><br />
(Amt. in thousand)<br />
As on 31.03.2010<br />
A<br />
I . Demand Deposits<br />
i. From Banks 0 0<br />
ii. From Others 1320621 1109266<br />
II. Savings Bank Deposits 17732770 15221479<br />
III. Term Deposits<br />
i. From Banks 0 0<br />
ii. From Others 8380195 8246311<br />
Total ( I+II+III) 27433586 24577056<br />
B<br />
I . Deposits of Branches in India 27433586 24577056<br />
II. Deposits of Branches outside India 0 0<br />
Total ( I+II) 27433586 24577056
MAHARASHTRA GRAMIN BANK<br />
HEAD OFFICE: SHIVAJINAGAR, NANDED<br />
I. Borrowings In India<br />
Particulars<br />
As on<br />
31.03.<strong>2011</strong><br />
(Amt. in thousand)<br />
As on 31.03.2010<br />
i. Reserve Bank of India<br />
ii Other Banks 253591 200054<br />
iii.. Other Institutions & Agencies 1676564 1231159<br />
II. Borrowings outside India -- --<br />
Total (I + II )<br />
1930155 1431213
MAHARASHTRA GRAMIN BANK<br />
HEAD OFFICE: SHIVAJINAGAR, NANDED<br />
(Amt. in thousand)<br />
Particulars As on 31.03.<strong>2011</strong> As on 31.03.2010<br />
i. Bills payable 334646 177160<br />
ii.<br />
iii.<br />
iv<br />
Inter office adjustments<br />
(Net)<br />
Interest accrued but not<br />
due<br />
Others (Including<br />
provisions)<br />
0 104370<br />
11679 47563<br />
724115 711389<br />
Total (i+ii+iii+iv) 1070440 1040481
MAHARASHTRA GRAMIN BANK<br />
HEAD OFFICE: SHIVAJINAGAR, NANDED<br />
Particulars<br />
As on<br />
31.03.<strong>2011</strong><br />
(Amt. in thousands)<br />
As on 31.03.2010<br />
1 Cash in Hand 521430 499344<br />
2 Balance with Reserve Bank of India<br />
In current Account 1714524 1361824<br />
In other Accounts<br />
Total (1 + 2 ) 2235954 1861168
MAHARASHTRA GRAMIN BANK<br />
HEAD OFFICE: SHIVAJINAGAR, NANDED<br />
Particulars<br />
As on<br />
31.03.<strong>2011</strong><br />
(Amt. in thousand)<br />
As on 31.03.2010<br />
1) In India<br />
i. Balance with Banks<br />
a) In current Accounts 382741 729037<br />
b) In other Deposit Accounts 5355349 4596627<br />
Sub - Total 5738090 5325664<br />
ii.<br />
Money at call & short Notice<br />
a) With Banks<br />
b) With Other institutions<br />
Sub - Total 0 0<br />
Total 1 ( i + ii ) 5738090 5325664<br />
2)<br />
Outside India Balance with Banks<br />
a) In current Account<br />
b) In other Deposit Account<br />
c) Money at call & Short Notice<br />
Total 2 ( a+b+c)<br />
Grand Total (1 + 2) 5738090 5325664
MAHARASHTRA GRAMIN BANK<br />
HEAD OFFICE: SHIVAJINAGAR, NANDED<br />
I. Investments in India in<br />
(Amt. in thousand)<br />
Particulars As on 31.03.<strong>2011</strong> As on 31.03.2010<br />
i. Government securities & Treasury bills 7941517 7206892<br />
ii. Other approved securities 0 0<br />
iii. Shares 12285 12735<br />
iv. Debentures and Bonds 326840 443500<br />
v. Subsidiaries and / or Joint ventures 0 0<br />
vi. Others (Units) 242400 72869<br />
Grant Total (i+ii+iii+iv+v+vi) 8523042 7735997<br />
Less : Depreciation / Provision 11945 6645<br />
Total 8511097 7729351<br />
II.<br />
Investments outside India in<br />
i. Government securities (Including local<br />
authorities)<br />
0 0<br />
ii. Subsidiaries and / or Joint ventures abroad 0 0<br />
iii. Other Investments ( to be specified) 0 0<br />
Total 0 0<br />
Grand Total( I + II ) 8511097 7729351
MAHARASHTRA GRAMIN BANK<br />
HEAD OFFICE: SHIVAJINAGAR, NANDED<br />
Particulars<br />
As on<br />
31.03.<strong>2011</strong><br />
(Amt. in thousand)<br />
As on 31.03.2010<br />
A I Bills purchased and discounted 41972 935249<br />
II<br />
Cash Credits, overdrafts & loans repayable on<br />
demand 6085791 4768345<br />
III TERM LOANS 8297954 6211807<br />
IV Debt Amt. Receivable from Govt. 28456 428585<br />
V Net effect of MOC 0 0<br />
Sub Total 14454173 12343986<br />
LESS : BAD & DOUBTFUL DEBTS PROVISIONS<br />
436007 417302<br />
GRAND TOTAL 14018166 11926684<br />
B I Standard 13697184 11644731<br />
II Sub Standard 307480 253756<br />
III Doubtful 410891 373638<br />
IV Loss of Assets 38618 71861<br />
SUB TOTAL 14454173 12343986<br />
Less : Bad & Doubtful debts Provisions 436007 417302<br />
GRAND TOTAL 14018166 11926684<br />
1 Advances in India<br />
I Priority sector 12427242 9470499<br />
II<br />
III<br />
Public sector<br />
Banks<br />
IV Others 2026931 2873487<br />
Total 1 14454173 12343986<br />
2 Advances outside India 0 0<br />
Less : Bad & Doubtful debts Provisions 436007 417302<br />
GRAND TOTAL 14018166 11926684
MAHARASHTRA GRAMIN BANK<br />
HEAD OFFICE: SHIVAJINAGAR, NANDED<br />
Particulars<br />
As on<br />
31.03.<strong>2011</strong><br />
(Amt. in thousand)<br />
As on 31.03.2010<br />
I. Premises:<br />
At cost as on 31 st March of the preceding year 657 692<br />
Addition during the year 0 0<br />
Deduction during the year 0 0<br />
Depreciation to date 33 35<br />
Sub Total (I) 624 657<br />
II.<br />
Other Fixed Assets<br />
(Including furniture and fixtures ) At cost as on 31 st<br />
56417 43126<br />
March of the preceding year<br />
Addition during the year 76913 36497<br />
Deduction during the year 773 276<br />
Depreciation to date 39964 22930<br />
Sub Total (II) 92592 56417<br />
Grand Total 93216 57074
MAHARASHTRA GRAMIN BANK<br />
HEAD OFFICE: SHIVAJINAGAR, NANDED<br />
Particulars<br />
As on<br />
31.03.<strong>2011</strong><br />
(Amt. in thousand)<br />
As on 31.03.2010<br />
i. Inter-Office adjustment (net) 15087 0<br />
ii. Interest accrued 663265 509375<br />
iii. Tax paid in advance / tax deducted at source 11127 6603<br />
iv. Stationery and stamps 5747 5502<br />
v. Non <strong>bank</strong>ing assets acquired in satisfaction of claims 0 0<br />
vi.<br />
Other (includes Accumulated losses, Sundry Debtors,<br />
Inland remittance, Other Receivables )<br />
654862 913058<br />
Total 1350088 1434539<br />
Particulars<br />
As on<br />
31.03.<strong>2011</strong><br />
(Amt. in<br />
thousand)<br />
As on<br />
31.03.2010<br />
Share Capital Deposit with<br />
Sponsor Bank<br />
Recapitalisation support received and deposit with Sponsor Bank as under<br />
Central Government 226700 0<br />
Sponsor Bank 0 0<br />
State Government 0 0<br />
Total 226700 0
MAHARASHTRA GRAMIN BANK<br />
HEAD OFFICE: SHIVAJINAGAR, NANDED<br />
i.<br />
Particulars<br />
Claims against the <strong>bank</strong> not acknowledged as<br />
debts.<br />
As on<br />
31.03.<strong>2011</strong><br />
(Amt. in thousand)<br />
As on 31.03.2010<br />
0 442<br />
ii. Liability for partly paid investments 0 0<br />
iii.<br />
Liability on account of outstanding forward<br />
exchange contracts<br />
0 0<br />
iv. Guarantees given on behalf of constituents 0 0<br />
a) India 0 0<br />
b) Outside India 0 0<br />
v. Acceptances, endorsements and other obligations 89326 73338<br />
vi.<br />
Other items for which the <strong>bank</strong> is contingently<br />
liable.<br />
464 0<br />
Total 89790 73780<br />
Particulars<br />
As on<br />
31.03.<strong>2011</strong><br />
(Amt. in thousand)<br />
As on 31.03.2010<br />
1 OBC 41223 150887<br />
2 IBC 550 1251<br />
3 LBC<br />
15611 0<br />
4 INLAND LETTERS 0 0<br />
Total 57383 152138
MAHARASHTRA GRAMIN BANK<br />
HEAD OFFICE: SHIVAJINAGAR, NANDED<br />
Particulars<br />
Current<br />
Year<br />
(Amt. in thousand)<br />
Previous Year<br />
i. Interest / discount on advances / bills 1358526 1001757<br />
ii. Income on Investments 897845 749061<br />
iii.<br />
Interest on balance with Reserve Bank of India & other<br />
<strong>bank</strong> funds<br />
0 0<br />
iv. Others 0 0<br />
TOTAL 2256371 1750817
MAHARASHTRA GRAMIN BANK<br />
HEAD OFFICE: SHIVAJINAGAR, NANDED<br />
Particulars<br />
Current<br />
Year<br />
(Amt. in thousand)<br />
Previous Year<br />
i. Commission, Exchange & Brokerage 54311 76918<br />
ii. Profit on sale of investments 26870 27935<br />
Less : Loss on sale of investments 0 30<br />
iii. Profit on revaluation of investments 0 27532<br />
Less: Loss on revaluation of 0 0<br />
investments 0 0<br />
iv. Profit on sale of land, buildings and other Assets 115 28<br />
Less: Loss on sale of land, buildings and other assets. 0 0<br />
v. Profit on exchange transactions 0 0<br />
Less: Loss on exchange transaction 0 0<br />
vi.<br />
Income earned by way of dividend etc. from<br />
subsidiaries / companies and / or joint ventures<br />
abroad / in India.<br />
0 0<br />
vii. Miscellaneous Income 103087 38206<br />
TOTAL 184383 170590
MAHARASHTRA GRAMIN BANK<br />
HEAD OFFICE: SHIVAJINAGAR, NANDED<br />
Particulars<br />
Current<br />
Year<br />
(Amt. in thousand)<br />
Previous Year<br />
I. Interest on Deposits 1115386 943204<br />
II.<br />
Interest on Reserve Bank of India / Inter Bank<br />
borrowings 0 0<br />
III. Others Interest on Refinance :<br />
a) NABARD 122029 48384<br />
b) Sponsor Bank 0 0<br />
Total 1237416 991588
MAHARASHTRA GRAMIN BANK<br />
HEAD OFFICE: SHIVAJINAGAR, NANDED<br />
(Amt. in thousand)<br />
Current Previous Year<br />
Particulars<br />
Year<br />
i. Payments to and provisions for employees 788273 524854<br />
ii. Rent, taxes and lighting 23057 18679<br />
iii. Printing and stationery 8127 6895<br />
iv. Advertisement and publicity 1825 1569<br />
v. Depreciation on Bank's property 40305 22965<br />
vi Directors fees, allowances and expenses on Board<br />
136 79<br />
Meeting<br />
vii. Auditors fees and expenses 2472 2867<br />
(Including Branch Auditors & Revenue Auditors)<br />
viii. Law Charges 1505 2812<br />
ix. Postage, Telegrams, Telephones etc. 3865 4190<br />
x. Repairs and maintenance 4628 3915<br />
xi.<br />
Insurance on deposits to DICGC<br />
on Fixed Assets 24620 19668<br />
xii. Other expenditure 71065 36305<br />
Total 969878 644798
SCHEDULE - 17 SIGNIFICANT ACCOUNTING POLICIES 2010-11<br />
01) ACCOUNTING CONVENTION (AS - 1):<br />
The financial statements have been prepared by following the going concern concept<br />
on historical cost basis except as otherwise stated and conform to the statutory<br />
provisions and practices prevailing in the country.<br />
02) FOREIGN EXCHANGE TRANSACTIONS (AS - 11):<br />
There are no transactions involving foreign exchange.<br />
03) INVESTMENTS (AS - 13) :<br />
I. Investments are grouped & shown in Balance-Sheet under the following six groups:<br />
i. Government Securities<br />
ii. Other Approved securities<br />
iii. Shares<br />
iv. Debentures and Bonds<br />
v. Investments in Subsidiaries/ Joint Ventures<br />
vi. Others (Commercial Paper, Units of Mutual Fund etc,)<br />
II.<br />
The Investment portfolio of the Bank is classified into the following three<br />
categories:<br />
i. Held to Maturity<br />
ii. Available for Sale<br />
iii. Held for Trading<br />
Bank decides the category of each investment at the time of acquisition and<br />
classifies the same accordingly. Transfer of securities from one category to another is<br />
done at the least of the acquisition cost/book value/ market value on the date of<br />
transfer.<br />
Valuation of Investments:<br />
a) Government Securities (Central & State) and Treasury Bills:<br />
i) Investments under this category forms part of SLR Investments of the <strong>bank</strong> as per<br />
RBI Circular no. RPCD/RRB no. BC 37A/ 03.05.34 / 2000-01 / 601 dated December<br />
4, 2000 and are classified as held to maturity. The SLR Investments have been<br />
exempted from marked to market norms for FY 2010-11, <strong>2011</strong>-12 & 2012-13 as<br />
per RBI Circular no. RPCD/CO/RRB/BC no. 59/ 03.05.34 / 2010-11 dated April
11, <strong>2011</strong>. Accordingly, these SLR investments consisting of investments in<br />
Government Securities (central and state) are classified as held to maturity and<br />
are valued at cost. The excess of acquisition cost if any, over the face value is<br />
amortized over the remaining period of maturity. During the year, <strong>bank</strong> has<br />
amortized premium of Rs. 5,56,53,837/- . Till FY 2009-10, shortfall of acquisition<br />
cost, if any, to the face value i.e. discount of face value was capitalized over the<br />
remaining period of maturity by credit to Profit and Loss a/c. This was done as<br />
per RBI Circular no. RPCD No. RF.BC.17/A-4-92/93 dated September 4, 1992.<br />
However, during the year under audit, <strong>bank</strong> has cited circular no. BC<br />
154/07.02.08/94-95 dated May 23, 1995 addressed to all SCBs, CCBs and RRBs<br />
and based on these circular, <strong>bank</strong> has decided to ignore discount on Government<br />
Securities i.e. it will not be accrued as income over remaining life of the maturity.<br />
Accordingly, an amount of Rs, 1,11,62,709/- (proportionate discount for current<br />
year) is ignored and not booked as income and not capitalized to book value of<br />
relevant G-sec.<br />
ii) Interest paid on purchases / received on sales for broken period is debited /<br />
credited to Interest received on Investments.<br />
iii)<br />
Treasury Bills are valued at cost of acquisition, since they do not carry any<br />
interest coupons and will mature at face value.<br />
iv) Provision is made for interest receivable from the date of last interest payment to<br />
March 31, <strong>2011</strong>.<br />
v) Net Profit on sale of investments under HTM Category (i.e. investments classified<br />
as HTM on last balance sheet date and sold during the year) is first taken to Profit<br />
& Loss Account and thereafter appropriated to capital reserve account. Net loss<br />
on sale is recognized in Profit & Loss Account. Profit / Loss on sale of securities<br />
purchased during the year is recognized in Profit & Loss a/c. It has been<br />
explained that entire profit earned during the year is from sale of securities<br />
purchased during the year and hence no transfer to capital reserve a/c is<br />
required.<br />
b) Valuation of Non SLR Investments::<br />
As per RBI Circular no. RPCD/RRB no. BC 37A/ 03.05.34 / 2000-01 / 601 dated<br />
December 4, 2000, non SLR investments includes investments in Shares,<br />
Debentures and Bonds, Investments in Subsidiaries and Joint Ventures, Others<br />
like mutual funds etc. Valuation is as follows:<br />
a) Investment in shares is marked to market. Net Depreciation is charged to profit<br />
and loss account and net appreciation is ignored. During the year, provision for<br />
depreciation on investment in shares is made at Rs. 36,72,519.30 by debit to<br />
Profit and Loss a/c.<br />
b) Investments in units of mutual funds marked to market. Net Depreciation is<br />
charged to profit and loss account and net appreciation is ignored. During the<br />
year, provision for depreciation on investment in mutual funds is made at Rs.<br />
82,72,516 by debit to Profit and Loss a/c.
c) In case of Debentures and bonds, Bank take approximate YTM on Government<br />
security having maturity date equal to or nearby date of maturity of instruments<br />
under consideration. These YTM rates are taken as published by FIMMDAI. Rtes<br />
used for YTM are 50 basis points above rates applicable to Government<br />
Securities. Based on these rates, market values are calculated. Net Depreciation<br />
is charged to profit and loss account and net appreciation is ignored. Net<br />
appreciation of Rs. 9,35,187/- is ignored.<br />
d) Provision is made for interest receivable from the date of last interest payment<br />
to March 31, <strong>2011</strong>. Dividends are recognized on cash basis.<br />
e) Profit/ loss on sale of these investments is credited/ debited to Profit & Loss a/c.<br />
4} FIXED ASSETS/ DEPRECIATION (AS - 6) & ( AS - 10) :<br />
i. Fixed assets are accounted for on historical cost basis.<br />
ii.<br />
Depreciation is provided for on Written Down Value method except on<br />
Computers & UPS. Computers are depreciated on Straight Line Method at the<br />
rate of 33.33% p.a. Depreciation on additions made during the year is charged at<br />
full rates. No depreciation is provided in the year of sale/ disposal on all fixed<br />
assets.<br />
5} ADVANCES:<br />
i. In terms of guidelines of Reserve Bank of India, advances are classified<br />
"performing" and "non-performing assets" based on recovery of principal/<br />
interest. Non Performing Advances (NPAs) are categorized as sub-standard,<br />
doubtful and loss assets for the purpose of provision.<br />
ii.<br />
iii.<br />
Advances shown in the Balance Sheet are net of provisions in respect of Nonperforming<br />
Advances and claims settled.<br />
Provisions on Standard Advances are shown under "Other Liabilities and<br />
Provisions".<br />
iv. Provision on advances is made as per RBI prudential norms and provisions held<br />
are as follows-:<br />
a) Standard Assets :<br />
0.40% of outstanding balance.<br />
b) Sub standard assets: 15% of outstanding balance secured by tangible assets<br />
and 100% on unsecured portion<br />
c) Doubtful assets:<br />
i) Assets classified in D-1 Category: - 50% of outstanding balance secured by<br />
tangible assets and 100% on unsecured portion<br />
ii) Assets classified in D-2, D-3 and Loss Category: 100% of outstanding balance.
6) REVENUE RECOGNITION (AS - 9) :<br />
i. Income/ Expenditure is accounted on accrual basis except in the following cases:<br />
In the case of Non Performing Assets, income is recognized on cash basis, in<br />
terms of guidelines of the Reserve Bank of India. Where recovery is not adequate<br />
to upgrade the Non Performing Assets accounts by way of regularization, such<br />
recovery is being appropriated towards the principal/ book balance in the first<br />
instance and towards interest dues thereafter. In respect of Non Performing<br />
Investments, the same accounting treatment as above is followed except other<br />
wise agreed.<br />
ii. Interest on securities, which is due and not paid for a period of more than 90<br />
days is recognized on realization basis as per R.B.I. guidelines.<br />
iii.<br />
iv.<br />
Income from sale of Mutual fund products, locker rent etc., are accounted on<br />
cash/ realization basis.<br />
In the case of overdue Term Deposits, interest is provided for @ 3.50% on GL<br />
Products. Many Branches has not provided interest on Over Due Deposits. Hence<br />
effect on profit can not be quantified.<br />
v. In the case of suit filed accounts legal expenses are charged to the profit and loss<br />
account. Similarly at the time of recovery of legal expenses in respect of such suit<br />
filed accounts the amount recovered is accounted as income.<br />
vi.<br />
Commission/ exchange are normally recognized on the date of receipts although<br />
income may relate to transaction period extending beyond the accounting<br />
period.<br />
7) SEGMENT REPORTING (AS - 17):<br />
The Bank has treated the entire operations as a single reportable segment and<br />
secondary segment is not considered necessary due to operations in only one State and<br />
hence no disclosure is required.<br />
8) RELATED PARTY DISCLOSURES (AS - 18) :<br />
In compliance with AS - 18 issued by ICAI and the RBI guidelines details of related<br />
party transactions are disclosed below;<br />
The Bank has considered the following as the related parties for disclosure under<br />
AS- 18 issued by the ICAI.<br />
The key personnel of the Bank and the remuneration paid to them as under –
Sr.<br />
No.<br />
Name<br />
Period<br />
1 A A Magdum, Chairman 01.04.2010 to 31.03.<strong>2011</strong><br />
2 M.C.Kulkarni, Chief General Manager 01.04.2010 to 30.06.2010<br />
3 P. R. Mohanty, Chief General Manager 01.07.2010 to 31.03.<strong>2011</strong><br />
4 A K R Singh, General Manager 01.04.2010 to 31.03.<strong>2011</strong><br />
5 D C Sthul, General Manager 01.04.2010 to 30.06.2010<br />
6 P K Mishra, General Manager 01.04.2010 to 31.03.<strong>2011</strong><br />
7 G Srikrishna, Senior Manager, Accounts 01.04.2010 to 30.11.2010<br />
8 H L Mote, Senior Manager, Inspection 01.04.2010 to 30.11.2010<br />
9 U K Kurwalkar, Regional Manager, Jalna 01.04.2010 to 31.03.<strong>2011</strong><br />
Officers on deputation for CBS<br />
10 L.K. Joshi 01.12.2010 to 31.03.<strong>2011</strong><br />
11 K.G. Iyer 01.12.2010 to 31.03.<strong>2011</strong><br />
12 Sachin Dharam 01.12.2010 to 31.03.<strong>2011</strong><br />
13 S.V.Pathak 01.12.2010 to 31.03.<strong>2011</strong><br />
14 R.S.Gaitonde 01.12.2010 to 31.03.<strong>2011</strong><br />
15 C.R.Kadu 01.12.2010 to 31.03.<strong>2011</strong><br />
16 H.M.Godse 01.12.2010 to 31.03.<strong>2011</strong><br />
17 C.A.Joshi 01.12.2010 to 31.03.<strong>2011</strong><br />
The Bank has paid Rs. 66.84 lacs towards remuneration during financial year to the staff on<br />
deputation from the Sponsor Bank.<br />
9) STAFF BENEFITS (AS - 15):<br />
1. In respect of employees who have opted for Provident Fund scheme,<br />
contribution as permitted by EPF act is made and debited to the Profit & Loss<br />
Account.<br />
2. Bank has provided for Gratuity liability in the books & the amount has been<br />
debited to the Profit & Loss Account. Amount of Gratuity has been worked out as<br />
per Actuarial valuation at the year-end.<br />
3. Liability towards leave encashment is provided for & debited to Profit & Loss<br />
Account based on valuation made by LIC.<br />
4 Bank has opted for contribution to Group Gratuity Trust Scheme and Group<br />
Leave Encashment Trust Scheme of LIC.
10) PROVISION FOR TAXATION:<br />
Sr.<br />
No.<br />
Particulars<br />
Current Previous<br />
Year Year<br />
Provision for Income Tax - - - -<br />
11) PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS<br />
(AS - 29):<br />
a) Provision of Rs. 4,64,366 is made in respect of suits filed against the <strong>bank</strong> by<br />
customers and first appellate authority has decided the case against the <strong>bank</strong>.<br />
Provision is made for amount ordered to be made by the first appellate authority.<br />
b) Employees union of the <strong>bank</strong> had filed case against the <strong>bank</strong> raising demand for<br />
payment of matching contribution to the Provident fund. Case has been decided in<br />
favor of the <strong>bank</strong> by High Court and SLP by union is filed at Supreme Court. The matter<br />
has been heard and is closed for judgement. This, in the opinion of the management,<br />
does not require any provision.<br />
-----*****-----
SCHEDULE - 18 NOTES ON ACCOUNTS - FINANCIAL YEAR 20910-11<br />
1) During the year, <strong>bank</strong> has migrated its entire 327 branches to Core Banking in last 4<br />
months of FY. It has not yet conducted migration audit. Hence there are likely to be<br />
un-detected migration errors. Our audit opinion is subject to migration audit.<br />
2) Report of the branch auditors and observations given therein form integral part of<br />
audit report and our audit opinion is subject to comments / observation of branch<br />
auditors.<br />
3) Reconciliation of entries as on 30.09.2010 in the Branch Adjustment account and<br />
other accounts have been drawn. All the branches of the Bank have been reconciled<br />
with the Head Office as on 30.09.2010. Debit entries pending over 6 months as on<br />
31.03.<strong>2011</strong> are 256 involving amount of Rs. 843.51 lacs whereas credit entries<br />
pending over 6 months are 5659 amounting to Rs. 24019.02 lacs. Work of<br />
reconciliation of these entries is in progress.<br />
Bank is required to provide for at 100% on net debit balance on the entries<br />
remaining unadjusted beyond Six months in Branch Adjustments Accounts as at year<br />
end. No provision has been made by the Bank as there is net credit balance in Branch<br />
Adjustment Account.<br />
4) New DD account has been introduced in the Bank from 22.09.2009 and DD<br />
Transactions have been separated from Inter Branch Reconciliation. As on<br />
31.03.<strong>2011</strong>, 3185 debit entries pending involving amount of Rs. 4704 lacs and 5226<br />
pending credit entries amounting Rs. 4860 lacs are pending. Work of reconciliation<br />
of these entries is in progress.<br />
5) Fixed assets such as computers, UPS, furniture, inverter and batteries etc. are sent to<br />
branches by debit to Proceeds in Transit a/c. Entries worth Rs. 212.47 lacs are<br />
pending in proceeds in transit a/c towards assets sent to branches, since PoB<br />
realizations are not received from branches. A provision of Rs. 84,60,482/- is made<br />
by debit to P/L Provisions a/c towards depreciation on assets / write off of expenses<br />
involved in proceeds in transit a/c<br />
6) During the year, <strong>bank</strong> has migrated its entire 327 branches to Core Banking in last 4<br />
months of FY. Few instances of excess interest application or interest application to<br />
NPA accounts have been identified by branch auditors. Bank has yet to get migration<br />
audit completed. To cover up any such instance of excess interest application, <strong>bank</strong><br />
has made an ad-hoc provision of Rs. 3 crore by debit to P/L Provisions and Credit to<br />
G/L Interest Suspense a/c. The provision in our opinion is adequate.<br />
7) Amount lying to the credit of Interest Suspense a/c (towards interest applied to the<br />
Distressed Farmers a/c but not credited to Income a/c and held in Interest Suspense<br />
a/c) Rs. 1,73,18,482/- has been credited to Profit and Loss a/c, since in the opinion of<br />
the management, most of the accounts have been recovered in Debit waiver/relief<br />
scheme.
8) As per RBI Directives, <strong>bank</strong> had made provision for interest receivable on ADWDR-08<br />
at the rates applicable to 364 days T-Bill. Total provision so made was Rs.<br />
1,97,28,716 against which government has paid interest of only Rs. 34,45,000/-.<br />
Balance amount of Rs. 1,62,83,716/-is not expected to be recovered and has been<br />
debited to Profit and Loss a/c.<br />
9) REPO TRANSACTIONS:<br />
Securities sold under<br />
Repos<br />
Securities purchased<br />
under reserve Repos<br />
Minimum<br />
Outstanding<br />
during the year<br />
Maximum<br />
outstanding<br />
during the Year<br />
Daily average<br />
outstanding<br />
during the year<br />
As on 31 st<br />
March<br />
<strong>2011</strong><br />
- - - - - - - -<br />
- - - - - - - -<br />
10) No provision has been made for Interest payable on RD at all 9 branches audited by<br />
us. Amount and its impact on profit is not quantifiable.<br />
11) Details of Financial Assets sold to Secularization (SC) / Reconstruction Company (RC)<br />
for Assets Reconstruction:<br />
Sr.<br />
No.<br />
Particulars<br />
Current<br />
Year<br />
Previous<br />
Year<br />
1. No. of Accounts - - - -<br />
2. Aggregate value (net of provisions) of accounts sold to - - - -<br />
SC/ RC<br />
3. Aggregate consideration - - - -<br />
4. Additional consideration realized in respect of accounts - - - -<br />
transferred in earlier years<br />
5. Aggregate gain/ loss over net book value - - - -<br />
12) At many branches, physical cash balance and book cash balance does not tally.<br />
Difference amount is lying in system suspense a/c.<br />
13) Subvention claim receivable from Government under various schemes have been<br />
accounted for on the basis of calculations made by a) Old software Auto<strong>bank</strong> and b)<br />
programe designed by PMO for subvention calculation. As observed during the<br />
course of audit by all branch auditors, calculations provided by PMO software are<br />
entirely wrong. Bank has explained that they will rework the entire claim amount<br />
and based on it, claimed will be lodged with Government. Amount of claim booked<br />
as of now is not correct.<br />
14) Other notes enclosed herewith in Annexure I forms an integral part of our<br />
audit report.<br />
a) Details of Non-Performing Financial Assets purchased /sold is "Nil"
(Rs. Lakh)<br />
Sr. Particulars Current<br />
Year<br />
Previous<br />
Year<br />
1(a) No. of accounts purchased / sold during the year - - - -<br />
(b) Aggregate outstanding - - - -<br />
2(a) Of these, number of account restructured during the year - - - -<br />
(b) Aggregate outstanding - - - -<br />
b) Provision On Standard Asset (Rs. Lakh)<br />
Sr. Particulars Current Year Previous Year<br />
Provisions towards Standard Assets 566 566<br />
15) CAPITAL:<br />
NABARD vide letter no. NB.IDD/-/CRAR Committee/ 2010-11 dated June 25, 2010<br />
sanctioned recapitalization support of Rs. 104 crore to the <strong>bank</strong>, out of which Rs. 94<br />
crore were to be received in current year and Rs. 10 crore were to be received in next<br />
year. However, during the year <strong>bank</strong> has received Rs. 6.80 crore from State<br />
Government and Rs. 15.87 crore from sponsor <strong>bank</strong>.<br />
Department of Financial Services, Ministry of Finance, Government of India vide letter<br />
no. F.No. 3/8/2010-RRB (i) dated March 31, <strong>2011</strong> ordered to release Rs. 22.67 crore to<br />
the <strong>bank</strong>. Accordingly, cheque of Rs. 22.67 crore is said to have been deposited in RBI<br />
a/c of the <strong>bank</strong>. Based on order of the Central Government, <strong>bank</strong> has made provision<br />
for recapitalization support receivable by corresponding credit to Share Capital<br />
Deposit a/c.<br />
The Capital Adequacy Ratio calculated in terms of the guidelines issued by RBI is as under:<br />
Sr.No.<br />
Items<br />
31.03.<strong>2011</strong> 31.03.2010<br />
1 CRAR % 9.07% 6.78%<br />
2 CRAR - Tier I Capital % 8.62% 5.53%<br />
3 CRAR - Tier II Capital % 0.45% 1.25%<br />
4 % of the holding of the Government of<br />
India/ State Government / BoM<br />
5 Amount of subordinated debt raised as<br />
Tier II Capital<br />
50%, 15%, 35% 50%, 15%, 35%<br />
-- --
16) INVESTMENTS:<br />
Sr.<br />
No.<br />
1 Value of Investments<br />
Particulars<br />
Current Year<br />
31.03.<strong>2011</strong><br />
( Rs. lakhs)<br />
Previous Year<br />
31.03.2010<br />
i) Gross Value of Investments 85230.41 77359.97<br />
ii) Provisions for Depreciation 119.45 66.45<br />
iii) Net Value of Investments 85110.96 77293.51<br />
2 Movement of provisions held towards depreciation on<br />
investments<br />
i) Opening Balance 66.45 348.09<br />
ii) Add :Provisions made during the year 57.30 12.34<br />
iii) Less: Write Off/ Write back of excess provisions during<br />
the year<br />
4.30 293.98<br />
iv) Closing Balance 119.45 66.45<br />
Amount of investments referred to above does not includes investment in <strong>bank</strong> deposits,<br />
which is Rs.53553.49 lacs, shown under Balance with other <strong>bank</strong>s in balance sheet as per<br />
RBI Directives.<br />
17) Disclosure in respect of Non-SLR Investment portfolio as on 31st March <strong>2011</strong>.<br />
No.<br />
i) Issuer composition of Non SLR Investments (Rs. in Crore)<br />
Amount Extent of<br />
Issuer<br />
private<br />
placement<br />
Extent of 'below<br />
investment grade'<br />
Securities already<br />
invested<br />
Extent of<br />
'unrated'<br />
securities,<br />
already invested<br />
Extent of<br />
'unlisted'<br />
securities<br />
(1) (2) (3) (4) (5) (6) (7)<br />
1 P S Us 18.00 -- -- --<br />
2 F I s 10.50 -- -- --<br />
3 Banks 23.31 -- -- --<br />
4 Private corporate - -- -- --<br />
5 Others 6.34 -- -- --<br />
6 Provision held<br />
-- XXX XXX XXX<br />
towards depreciation<br />
TOTAL 58.15 -- -- - -
ii)<br />
Non- Performing Non- SLR Investments:<br />
Particulars<br />
Amount (Rs. Crore)<br />
Opening Balance - -<br />
Additions during the year since 1 st April - -<br />
Reductions during the above period - -<br />
Closing Balance - -<br />
Total Provisions Held - -<br />
18) Disclosure under Accounting Standard 5<br />
a)During the year Rs. 963.00 lacs debited to Profit and Loss account towards<br />
payment to LIC on account of provision for Gratuity and Rs. 5.00 lacs towards leave<br />
encashment.<br />
b)Other than one mentioned above, no material prior period expenditure has been<br />
debited to Profit and Loss Account.<br />
18-A) Disclosure of penalties imposed by RBI:<br />
RBI has not imposed any penalties to the Bank during the Current Financial Year.<br />
18-B) Floating Provisions: No such provisions held by the Bank.<br />
19) ASSET LIABILITY MANAGEMENT:<br />
Maturity pattern of certain Assets & Liabilities as under:<br />
Maturity pattern of Assets & Liabilities has been worked out by Bank and we rely<br />
on that<br />
(Rs. in lakhs)<br />
Sr.<br />
No<br />
Maturity Pattern<br />
Loans &<br />
Advances<br />
ASSETS<br />
Investments &<br />
Bank Dep.<br />
LIABILITIES<br />
Deposits Borrowings<br />
1. 1 to 14 days 13477.26 1723.87 12262.75 0.00<br />
2. 15 to 28 days 7027.82 2100.00 2935.38 0.00<br />
3. 29 days to 3 months 9838.94 13070.00 4883.16 1926.81<br />
4. Over 3 months to 6 months 6929.43 12801.36 6830.94 8452.30<br />
5. Over 6 months to 12 months 10387.11 26418.29 14649.45 6132.92<br />
6. Over 1 year to 3 years 72586.30 12985.78 190747.12 2098.76<br />
7. Over 3 years to 5 years 17316.54 13556.59 29298.94 690.74<br />
8. Over 5 years 6706.64 56128.03 12729.13 0<br />
Total 144270.04 138783.92 274336.87 19301.55
20) Movement of NPA during the year:<br />
Particulars<br />
(Rs. in Lacs)<br />
31st March <strong>2011</strong> 31st March 2010<br />
Gross NPA as at the commencement of the year 6992.55 7002.80<br />
Additions during the year 2483.15 2882.28<br />
Less Reduction during the year<br />
i) Amounts recovered 1426.55 1847.16<br />
ii) Amounts Written Off 436.60 901.11<br />
iii) Upgradation 42.66 144.26<br />
Gross NPAs as at the close of the year 7569.89 6992.55<br />
Less Provisions 4360.06 4173.02<br />
Net NPA as at the close of the year 3209.83 2806.20<br />
21) Movement in provision for Non Performing Advances:<br />
(Rs. in Lacs)<br />
Particulars<br />
31st March<br />
<strong>2011</strong><br />
31st March<br />
2010<br />
Opening balance (excluding provisions on standard assets) 4173.02 5054.80<br />
Add: Provision made during the year 623.65 240.00<br />
Less: Write Off during the year 436.60 1121.78<br />
Closing Balance 4360.07 4173.02<br />
22) Disclosure of complaints:<br />
A. Customer Complaints -<br />
Sr. Particulars Details<br />
a No. of complaints pending at the beginning of the year 17<br />
b No. of complaints received during the year 63<br />
c No. of complaints redressed during the year 74<br />
d No. of complaints pending at the end of the year 06<br />
B. Award passed by the Banking Ombudsman -<br />
Sr. Particulars Details<br />
a No. of unimplemented Awards at the beginning of the year Nil<br />
b No. of Awards passed by the Banking Ombudsman during the year Nil<br />
c No. of Awards implemented during the year Nil<br />
d No. of unimplemented Awards at the end of the year Nil
23) Details of Loans Assets subject to Restructuring<br />
i<br />
ii<br />
iii<br />
iv<br />
Particulars<br />
Current<br />
Year<br />
Previous Year<br />
Total amount of loan assets subject to restructuring, rescheduling,<br />
renegotiation Nil Nil<br />
The amount of Standard assets subjected to restructuring,<br />
rescheduling, renegotiation Nil Nil<br />
The amount of Sub-Standard assets subjected to restructuring,<br />
rescheduling, renegotiation Nil Nil<br />
The amount of Doubtful assets subjected to restructuring,<br />
rescheduling, renegotiation Nil Nil<br />
Note [ (i) = (ii) + (iii) + (iv)] Nil Nil<br />
24) Exposure to Real Estate Sector<br />
(Rs. in lakhs)<br />
Sr. Category Current Year Previous<br />
Year<br />
a Direct exposure<br />
i) Residential Mortgages<br />
15885.44 6896.10<br />
Lending fully secured by mortgages on residential property<br />
that is or will be occupied by the borrower or that is rented<br />
(individual housing loan upto Rs. 15 lakh may be shown<br />
separately)<br />
ii) Commercial Real Estate<br />
Lending secured by mortgages on commercial real estates<br />
(office buildings, retail space, multi-purpose commercial<br />
premises, multi-family residential building, multi-tenanted 2037.50 560.25<br />
commercial premises, industrial or warehouse space, hotels,<br />
land acquisition, development and construction, etc.)<br />
Exposure would also include non-fund based (NFB) limits;<br />
iii) Investments in Mortgage Backed Securities (MBS) and other<br />
-- --<br />
securitized exposures<br />
a. Residential -- --<br />
b. Commercial Real Estate -- --<br />
b) Indirect Exposure<br />
Fund-based and non-fund based exposures on National<br />
Housing Bank (NHB) and Housing Finance Companies (HFCs)<br />
-- --<br />
25) Details of Single Borrower (SGL), Group Borrower Limit (GBL) exceeded by the Bank:<br />
- - N I L - -
26) Maintenance of CRR:<br />
During current financial year the Bank has maintained adequate average balance<br />
with RBI in compliance to the CRR requirement.<br />
27) Following ratios have been calculated as per NABARD guidelines:<br />
Particulars<br />
As on 31 st<br />
March,<br />
<strong>2011</strong><br />
(Rs in crores)<br />
As on 31 st<br />
March, 2010<br />
Percentage of Net NPAs to net Advances 1.97 2.36<br />
Interest income as a percentage to working funds 8.12 8.50<br />
Non interest income as a percentage to working funds 0.66 0.82<br />
Operating Profit as a percentage to working funds 0.84 1.38<br />
Return on Assets 0.38 0.72<br />
Business (Deposits + Advances) Per Employee 3.22 2.77<br />
Gross Profit Per Employee 0.018 0.02<br />
Net Profit Per Employee 0.009 0.015<br />
28) The Bank has maintained the Statutory Liquidity Ratio (SLR) @ 25% of Demand &<br />
Time Liabilities by investing with the NABARD & in Government Securities. Bank has<br />
also maintained Cash Reserve Ratio as per applicable rates (presently 6.00%) of<br />
Demand & Time Liabilities with Reserve Bank of India for financial year.<br />
29) The figures have been rounded off to the nearest thousands. Figures in bracket<br />
indicate negative amounts. Figures shown in the tables/ annexure/ charts are as<br />
given and certified by the management.<br />
30) Previous year's figures have been re-grouped / re-classified wherever necessary to<br />
confirm Current year's classification.<br />
FOR MANDHANA & ASSOCIATES<br />
CHARTERED ACCOUNTANTS<br />
FOR MAHARASHTRA GRAMIN BANK<br />
CA. RAJENDRA S MANDHANA<br />
PARTNER<br />
M. No. 109511 FRN.121195W<br />
ASHOK MAGDUM<br />
CHAIRMAN<br />
H N DHANURKAR<br />
DIRECTOR<br />
M K CHANDEKAR<br />
DIRECTOR<br />
V R GUPTA<br />
DIRECTOR<br />
A D DESHPANDE<br />
DIRECTOR<br />
EKNATHRAO DAWALE<br />
DIRECTOR<br />
SHRIKAR PARDESHI<br />
DIRECTOR
MAHARASHTRA GRAMIN BANK<br />
HEAD OFFICE: SHIVAJINAGAR, NANDED<br />
Provision for<br />
1 Bad & Doubtful debt<br />
2 Non Performing Investment<br />
Particulars<br />
3 Deprecation in Investment (Mark to Market valuation)<br />
4 Gratuity Payment<br />
5 Leave Balance (P/L)<br />
6 Fraud<br />
7 Inter Bank Reconcilation (Mahur Br)<br />
8 Cash theft (Shiradhon Br)<br />
9 FBT<br />
10 Debit Balance in S/B<br />
Total (1 + 8)<br />
Less : Write back provision<br />
investment<br />
Less : Write back provision<br />
investment<br />
Current<br />
Year<br />
(Amt. in<br />
thousand)<br />
Previous<br />
Year<br />
623<br />
65 24000<br />
0<br />
573<br />
0<br />
430<br />
0 57423<br />
0<br />
846<br />
0<br />
300<br />
00<br />
50<br />
464<br />
0<br />
111<br />
370<br />
Less : Write back provision of NPA 0<br />
Less : Write back provision of Non<br />
performing invest.<br />
Total Net Provisions<br />
0<br />
0<br />
0<br />
81423<br />
111<br />
370 81423