BalanceSheet 2011 - maharashtra gramin bank

MAHARASHTRA GRAMIN BANK 

HEAD OFFICE: SHIVAJINAGAR, NANDED 

Particulars Schedule Position as 

on 

31.03.2011 

(Amt. in thousand) 

Position as on 31.03.2010 

CAPITAL AND LIABILITIES 

Capital 1 30000 30000 

Share Capital Deposit Account 01 - A 1476862 1023462 

Reserves & Surplus 2 232268 232268 

Deposits 3 27433586 24577056 

Borrowings 4 1930155 1431213 

Other liabilities & Provisions 5 1070440 1040481 

TOTAL 32173311 28334480 

ASSETS 

Cash & Balance with RBI 6 2235954 1861168 

Balance with Bank & Money at Call & Short 7 5738090 5325664 

Notice 

Investments 8 8511097 7729351 

Advances 9 14018166 11926684 

Fixed Assets 10 93216 57074 

Other Assets 11 1350088 1434539 

Share Capital Dep. With Sponsor Bank 11 -A 226700 0 

TOTAL 32173311 28334480 

Contingent Liabilities 12 89790 73780 

Bills for collection 57383 152138 

Principal Accounting Policies 17 - - 

Notes on Accounts 18 - - 

The schedules referred to above form an integral part of the Accounts 

For Maharashtra Gramin Bank 

For M/s. Mandhana & 

Associates 

(Chartered Accountants) 

A A Magdum P R Mohanty A K R Singh P J Mishra Rajendra S Mandhana 

Chairman Chief General Manager General Manager Partner 

M No. 109511 

Place: Nanded 

F R N 121195W 

Date: April 15, 2011



Particulars Schedule Current 

Year 


Previous Year 

INCOME 

Interest Earned 13 2256371 1750817 

Other Income 14 184383 170590 

TOTAL 2440754 1921407 

EXPENDITURE 

Interest Expended 15 1237416 991588 

Operating Expenses 16 969878 644798 

Provisions and contingencies - 111370 81423 

TOTAL 2318664 1717809 

PROFIT / LOSS - 

Net Loss ( - ) Profit (+) for the Year - 122090 203598 

Profit (+) /Loss (-) brought forward - 556463 682867 

TOTAL 434373 479270 

APPROPRIATION 

Transfer to Statutory Reserves - 8520 

Transfer to Special Reserves - 0 30000 

Transfer to Capital Reserves - 3798 

Transfer to Investment Fluctuation - 34876 

Balance carried over to Balance sheet - 434373 556463 

TOTAL 434373 479269 

For Maharashtra Gramin Bank 

For M/s. Mandhana & 

Associates 

(Chartered Accountants) 

A A Magdum P R Mohanty A K R Singh P J Mishra Rajendra S Mandhana 

Chairman Chief General Manager General Manager Partner 

M No. 109511 

Place: Nanded 

F R N 121195W 

Date: April 15, 2011



Particulars 

As on 



As on 31.03.2010 

Authorised Capital ( 5,00,000 Shares of Rs. 100 each ) 50000 30000 

Issued Capital ( 3,00,000 Shares of Rs. 100 each ) 30000 30000 

Subscribed Capital (3,00,000 Shares of Rs. 100 each ) 30000 30000 

Called up Capital ( 3,00,000 Shares of Rs. 100 each ) 30000 30000 

Less : Called Unpaid -- -- 

Add : Forfeited Shares -- -- 

TOTAL 30000 30000 


Particulars 

As on 


As on 31.03.2010 

Share Capital Deposit Account 1476862 1023462 

Recapitalisation support received as under 

Central Government 738431 511731 

Sponsor Bank 516911 358211 

State Government 221519 153519 

Total 1476862 1023462



Particulars 

As on 



As on 31.03.2010 

I Statutory Reserves 102911 102911 

Opening Balance 102911 94391 

Additions during the year 0 8520 

Deductions during the year 0 0 

II. Special Reserve 30000 30000 



Deduction during the year 0 0 

III Capital Reserves 21755 21755 




IV. Investment Fluctuation Resevre 77602 77602 




0 0 

V. Revenue and Other Reserves 0 0 



Deductions during the year 

0 0 

V. Balance in Profit & Loss Account 0 0 




Grand Total 232268 232268



Particulars 

As on 



As on 31.03.2010 

A 

I . Demand Deposits 

i. From Banks 0 0 

ii. From Others 1320621 1109266 

II. Savings Bank Deposits 17732770 15221479 

III. Term Deposits 

i. From Banks 0 0 

ii. From Others 8380195 8246311 

Total ( I+II+III) 27433586 24577056 

B 

I . Deposits of Branches in India 27433586 24577056 

II. Deposits of Branches outside India 0 0 

Total ( I+II) 27433586 24577056



I. Borrowings In India 

Particulars 

As on 



As on 31.03.2010 

i. Reserve Bank of India 

ii Other Banks 253591 200054 

iii.. Other Institutions & Agencies 1676564 1231159 

II. Borrowings outside India -- -- 

Total (I + II ) 

1930155 1431213




Particulars As on 31.03.2011 As on 31.03.2010 

i. Bills payable 334646 177160 

ii. 

iii. 

iv 

Inter office adjustments 

(Net) 

Interest accrued but not 

due 

Others (Including 

provisions) 

0 104370 

11679 47563 

724115 711389 

Total (i+ii+iii+iv) 1070440 1040481



Particulars 

As on 


(Amt. in thousands) 

As on 31.03.2010 

1 Cash in Hand 521430 499344 

2 Balance with Reserve Bank of India 

In current Account 1714524 1361824 

In other Accounts 

Total (1 + 2 ) 2235954 1861168



Particulars 

As on 



As on 31.03.2010 

1) In India 

i. Balance with Banks 

a) In current Accounts 382741 729037 

b) In other Deposit Accounts 5355349 4596627 

Sub - Total 5738090 5325664 

ii. 

Money at call & short Notice 

a) With Banks 

b) With Other institutions 

Sub - Total 0 0 

Total 1 ( i + ii ) 5738090 5325664 

2) 

Outside India Balance with Banks 

a) In current Account 

b) In other Deposit Account 

c) Money at call & Short Notice 

Total 2 ( a+b+c) 

Grand Total (1 + 2) 5738090 5325664



I. Investments in India in 


Particulars As on 31.03.2011 As on 31.03.2010 

i. Government securities & Treasury bills 7941517 7206892 

ii. Other approved securities 0 0 

iii. Shares 12285 12735 

iv. Debentures and Bonds 326840 443500 

v. Subsidiaries and / or Joint ventures 0 0 

vi. Others (Units) 242400 72869 

Grant Total (i+ii+iii+iv+v+vi) 8523042 7735997 

Less : Depreciation / Provision 11945 6645 

Total 8511097 7729351 

II. 

Investments outside India in 

i. Government securities (Including local 

authorities) 

0 0 

ii. Subsidiaries and / or Joint ventures abroad 0 0 

iii. Other Investments ( to be specified) 0 0 

Total 0 0 

Grand Total( I + II ) 8511097 7729351



Particulars 

As on 



As on 31.03.2010 

A I Bills purchased and discounted 41972 935249 

II 

Cash Credits, overdrafts & loans repayable on 

demand 6085791 4768345 

III TERM LOANS 8297954 6211807 

IV Debt Amt. Receivable from Govt. 28456 428585 

V Net effect of MOC 0 0 

Sub Total 14454173 12343986 

LESS : BAD & DOUBTFUL DEBTS PROVISIONS 

436007 417302 

GRAND TOTAL 14018166 11926684 

B I Standard 13697184 11644731 

II Sub Standard 307480 253756 

III Doubtful 410891 373638 

IV Loss of Assets 38618 71861 

SUB TOTAL 14454173 12343986 

Less : Bad & Doubtful debts Provisions 436007 417302 

GRAND TOTAL 14018166 11926684 

1 Advances in India 

I Priority sector 12427242 9470499 

II 

III 

Public sector 

Banks 

IV Others 2026931 2873487 

Total 1 14454173 12343986 

2 Advances outside India 0 0 

Less : Bad & Doubtful debts Provisions 436007 417302 

GRAND TOTAL 14018166 11926684



Particulars 

As on 



As on 31.03.2010 

I. Premises: 

At cost as on 31 st March of the preceding year 657 692 

Addition during the year 0 0 


Depreciation to date 33 35 

Sub Total (I) 624 657 

II. 

Other Fixed Assets 

(Including furniture and fixtures ) At cost as on 31 st 

56417 43126 

March of the preceding year 

Addition during the year 76913 36497 


Depreciation to date 39964 22930 

Sub Total (II) 92592 56417 

Grand Total 93216 57074



Particulars 

As on 



As on 31.03.2010 

i. Inter-Office adjustment (net) 15087 0 

ii. Interest accrued 663265 509375 

iii. Tax paid in advance / tax deducted at source 11127 6603 

iv. Stationery and stamps 5747 5502 

v. Non banking assets acquired in satisfaction of claims 0 0 

vi. 

Other (includes Accumulated losses, Sundry Debtors, 

Inland remittance, Other Receivables ) 

654862 913058 

Total 1350088 1434539 

Particulars 

As on 


(Amt. in 

thousand) 

As on 

31.03.2010 

Share Capital Deposit with 

Sponsor Bank 

Recapitalisation support received and deposit with Sponsor Bank as under 

Central Government 226700 0 

Sponsor Bank 0 0 

State Government 0 0 

Total 226700 0



i. 

Particulars 

Claims against the bank not acknowledged as 

debts. 

As on 



As on 31.03.2010 

0 442 

ii. Liability for partly paid investments 0 0 

iii. 

Liability on account of outstanding forward 

exchange contracts 

0 0 

iv. Guarantees given on behalf of constituents 0 0 

a) India 0 0 

b) Outside India 0 0 

v. Acceptances, endorsements and other obligations 89326 73338 

vi. 

Other items for which the bank is contingently 

liable. 

464 0 

Total 89790 73780 

Particulars 

As on 



As on 31.03.2010 

1 OBC 41223 150887 

2 IBC 550 1251 

3 LBC 

15611 0 

4 INLAND LETTERS 0 0 

Total 57383 152138



Particulars 

Current 

Year 


Previous Year 

i. Interest / discount on advances / bills 1358526 1001757 

ii. Income on Investments 897845 749061 

iii. 

Interest on balance with Reserve Bank of India & other 

bank funds 

0 0 

iv. Others 0 0 

TOTAL 2256371 1750817



Particulars 

Current 

Year 


Previous Year 

i. Commission, Exchange & Brokerage 54311 76918 

ii. Profit on sale of investments 26870 27935 

Less : Loss on sale of investments 0 30 

iii. Profit on revaluation of investments 0 27532 

Less: Loss on revaluation of 0 0 

investments 0 0 

iv. Profit on sale of land, buildings and other Assets 115 28 

Less: Loss on sale of land, buildings and other assets. 0 0 

v. Profit on exchange transactions 0 0 

Less: Loss on exchange transaction 0 0 

vi. 

Income earned by way of dividend etc. from 

subsidiaries / companies and / or joint ventures 

abroad / in India. 

0 0 

vii. Miscellaneous Income 103087 38206 

TOTAL 184383 170590



Particulars 

Current 

Year 


Previous Year 

I. Interest on Deposits 1115386 943204 

II. 

Interest on Reserve Bank of India / Inter Bank 

borrowings 0 0 

III. Others Interest on Refinance : 

a) NABARD 122029 48384 

b) Sponsor Bank 0 0 

Total 1237416 991588




Current Previous Year 

Particulars 

Year 

i. Payments to and provisions for employees 788273 524854 

ii. Rent, taxes and lighting 23057 18679 

iii. Printing and stationery 8127 6895 

iv. Advertisement and publicity 1825 1569 

v. Depreciation on Bank's property 40305 22965 

vi Directors fees, allowances and expenses on Board 

136 79 

Meeting 

vii. Auditors fees and expenses 2472 2867 

(Including Branch Auditors & Revenue Auditors) 

viii. Law Charges 1505 2812 

ix. Postage, Telegrams, Telephones etc. 3865 4190 

x. Repairs and maintenance 4628 3915 

xi. 

Insurance on deposits to DICGC 

on Fixed Assets 24620 19668 

xii. Other expenditure 71065 36305 

Total 969878 644798

SCHEDULE - 17 SIGNIFICANT ACCOUNTING POLICIES 2010-11 

01) ACCOUNTING CONVENTION (AS - 1): 

The financial statements have been prepared by following the going concern concept 

on historical cost basis except as otherwise stated and conform to the statutory 

provisions and practices prevailing in the country. 

02) FOREIGN EXCHANGE TRANSACTIONS (AS - 11): 

There are no transactions involving foreign exchange. 

03) INVESTMENTS (AS - 13) : 

I. Investments are grouped & shown in Balance-Sheet under the following six groups: 

i. Government Securities 

ii. Other Approved securities 

iii. Shares 

iv. Debentures and Bonds 

v. Investments in Subsidiaries/ Joint Ventures 

vi. Others (Commercial Paper, Units of Mutual Fund etc,) 

II. 

The Investment portfolio of the Bank is classified into the following three 

categories: 

i. Held to Maturity 

ii. Available for Sale 

iii. Held for Trading 

Bank decides the category of each investment at the time of acquisition and 

classifies the same accordingly. Transfer of securities from one category to another is 

done at the least of the acquisition cost/book value/ market value on the date of 

transfer. 

Valuation of Investments: 

a) Government Securities (Central & State) and Treasury Bills: 

i) Investments under this category forms part of SLR Investments of the bank as per 

RBI Circular no. RPCD/RRB no. BC 37A/ 03.05.34 / 2000-01 / 601 dated December 

4, 2000 and are classified as held to maturity. The SLR Investments have been 

exempted from marked to market norms for FY 2010-11, 2011-12 & 2012-13 as 

per RBI Circular no. RPCD/CO/RRB/BC no. 59/ 03.05.34 / 2010-11 dated April

11, 2011. Accordingly, these SLR investments consisting of investments in 

Government Securities (central and state) are classified as held to maturity and 

are valued at cost. The excess of acquisition cost if any, over the face value is 

amortized over the remaining period of maturity. During the year, bank has 

amortized premium of Rs. 5,56,53,837/- . Till FY 2009-10, shortfall of acquisition 

cost, if any, to the face value i.e. discount of face value was capitalized over the 

remaining period of maturity by credit to Profit and Loss a/c. This was done as 

per RBI Circular no. RPCD No. RF.BC.17/A-4-92/93 dated September 4, 1992. 

However, during the year under audit, bank has cited circular no. BC 

154/07.02.08/94-95 dated May 23, 1995 addressed to all SCBs, CCBs and RRBs 

and based on these circular, bank has decided to ignore discount on Government 

Securities i.e. it will not be accrued as income over remaining life of the maturity. 

Accordingly, an amount of Rs, 1,11,62,709/- (proportionate discount for current 

year) is ignored and not booked as income and not capitalized to book value of 

relevant G-sec. 

ii) Interest paid on purchases / received on sales for broken period is debited / 

credited to Interest received on Investments. 

iii) 

Treasury Bills are valued at cost of acquisition, since they do not carry any 

interest coupons and will mature at face value. 

iv) Provision is made for interest receivable from the date of last interest payment to 

March 31, 2011. 

v) Net Profit on sale of investments under HTM Category (i.e. investments classified 

as HTM on last balance sheet date and sold during the year) is first taken to Profit 

& Loss Account and thereafter appropriated to capital reserve account. Net loss 

on sale is recognized in Profit & Loss Account. Profit / Loss on sale of securities 

purchased during the year is recognized in Profit & Loss a/c. It has been 

explained that entire profit earned during the year is from sale of securities 

purchased during the year and hence no transfer to capital reserve a/c is 

required. 

b) Valuation of Non SLR Investments:: 

As per RBI Circular no. RPCD/RRB no. BC 37A/ 03.05.34 / 2000-01 / 601 dated 

December 4, 2000, non SLR investments includes investments in Shares, 

Debentures and Bonds, Investments in Subsidiaries and Joint Ventures, Others 

like mutual funds etc. Valuation is as follows: 

a) Investment in shares is marked to market. Net Depreciation is charged to profit 

and loss account and net appreciation is ignored. During the year, provision for 

depreciation on investment in shares is made at Rs. 36,72,519.30 by debit to 

Profit and Loss a/c. 

b) Investments in units of mutual funds marked to market. Net Depreciation is 

charged to profit and loss account and net appreciation is ignored. During the 

year, provision for depreciation on investment in mutual funds is made at Rs. 

82,72,516 by debit to Profit and Loss a/c.

c) In case of Debentures and bonds, Bank take approximate YTM on Government 

security having maturity date equal to or nearby date of maturity of instruments 

under consideration. These YTM rates are taken as published by FIMMDAI. Rtes 

used for YTM are 50 basis points above rates applicable to Government 

Securities. Based on these rates, market values are calculated. Net Depreciation 

is charged to profit and loss account and net appreciation is ignored. Net 

appreciation of Rs. 9,35,187/- is ignored. 

d) Provision is made for interest receivable from the date of last interest payment 

to March 31, 2011. Dividends are recognized on cash basis. 

e) Profit/ loss on sale of these investments is credited/ debited to Profit & Loss a/c. 

4} FIXED ASSETS/ DEPRECIATION (AS - 6) & ( AS - 10) : 

i. Fixed assets are accounted for on historical cost basis. 

ii. 

Depreciation is provided for on Written Down Value method except on 

Computers & UPS. Computers are depreciated on Straight Line Method at the 

rate of 33.33% p.a. Depreciation on additions made during the year is charged at 

full rates. No depreciation is provided in the year of sale/ disposal on all fixed 

assets. 

5} ADVANCES: 

i. In terms of guidelines of Reserve Bank of India, advances are classified 

"performing" and "non-performing assets" based on recovery of principal/ 

interest. Non Performing Advances (NPAs) are categorized as sub-standard, 

doubtful and loss assets for the purpose of provision. 

ii. 

iii. 

Advances shown in the Balance Sheet are net of provisions in respect of Nonperforming 

Advances and claims settled. 

Provisions on Standard Advances are shown under "Other Liabilities and 

Provisions". 

iv. Provision on advances is made as per RBI prudential norms and provisions held 

are as follows-: 

a) Standard Assets : 

0.40% of outstanding balance. 

b) Sub standard assets: 15% of outstanding balance secured by tangible assets 

and 100% on unsecured portion 

c) Doubtful assets: 

i) Assets classified in D-1 Category: - 50% of outstanding balance secured by 

tangible assets and 100% on unsecured portion 

ii) Assets classified in D-2, D-3 and Loss Category: 100% of outstanding balance.

6) REVENUE RECOGNITION (AS - 9) : 

i. Income/ Expenditure is accounted on accrual basis except in the following cases: 

In the case of Non Performing Assets, income is recognized on cash basis, in 

terms of guidelines of the Reserve Bank of India. Where recovery is not adequate 

to upgrade the Non Performing Assets accounts by way of regularization, such 

recovery is being appropriated towards the principal/ book balance in the first 

instance and towards interest dues thereafter. In respect of Non Performing 

Investments, the same accounting treatment as above is followed except other 

wise agreed. 

ii. Interest on securities, which is due and not paid for a period of more than 90 

days is recognized on realization basis as per R.B.I. guidelines. 

iii. 

iv. 

Income from sale of Mutual fund products, locker rent etc., are accounted on 

cash/ realization basis. 

In the case of overdue Term Deposits, interest is provided for @ 3.50% on GL 

Products. Many Branches has not provided interest on Over Due Deposits. Hence 

effect on profit can not be quantified. 

v. In the case of suit filed accounts legal expenses are charged to the profit and loss 

account. Similarly at the time of recovery of legal expenses in respect of such suit 

filed accounts the amount recovered is accounted as income. 

vi. 

Commission/ exchange are normally recognized on the date of receipts although 

income may relate to transaction period extending beyond the accounting 

period. 

7) SEGMENT REPORTING (AS - 17): 

The Bank has treated the entire operations as a single reportable segment and 

secondary segment is not considered necessary due to operations in only one State and 

hence no disclosure is required. 

8) RELATED PARTY DISCLOSURES (AS - 18) : 

In compliance with AS - 18 issued by ICAI and the RBI guidelines details of related 

party transactions are disclosed below; 

The Bank has considered the following as the related parties for disclosure under 

AS- 18 issued by the ICAI. 

The key personnel of the Bank and the remuneration paid to them as under –

Sr. 

No. 

Name 

Period 

1 A A Magdum, Chairman 01.04.2010 to 31.03.2011 

2 M.C.Kulkarni, Chief General Manager 01.04.2010 to 30.06.2010 

3 P. R. Mohanty, Chief General Manager 01.07.2010 to 31.03.2011 

4 A K R Singh, General Manager 01.04.2010 to 31.03.2011 

5 D C Sthul, General Manager 01.04.2010 to 30.06.2010 

6 P K Mishra, General Manager 01.04.2010 to 31.03.2011 

7 G Srikrishna, Senior Manager, Accounts 01.04.2010 to 30.11.2010 

8 H L Mote, Senior Manager, Inspection 01.04.2010 to 30.11.2010 

9 U K Kurwalkar, Regional Manager, Jalna 01.04.2010 to 31.03.2011 

Officers on deputation for CBS 

10 L.K. Joshi 01.12.2010 to 31.03.2011 

11 K.G. Iyer 01.12.2010 to 31.03.2011 

12 Sachin Dharam 01.12.2010 to 31.03.2011 

13 S.V.Pathak 01.12.2010 to 31.03.2011 

14 R.S.Gaitonde 01.12.2010 to 31.03.2011 

15 C.R.Kadu 01.12.2010 to 31.03.2011 

16 H.M.Godse 01.12.2010 to 31.03.2011 

17 C.A.Joshi 01.12.2010 to 31.03.2011 

The Bank has paid Rs. 66.84 lacs towards remuneration during financial year to the staff on 

deputation from the Sponsor Bank. 

9) STAFF BENEFITS (AS - 15): 

1. In respect of employees who have opted for Provident Fund scheme, 

contribution as permitted by EPF act is made and debited to the Profit & Loss 

Account. 

2. Bank has provided for Gratuity liability in the books & the amount has been 

debited to the Profit & Loss Account. Amount of Gratuity has been worked out as 

per Actuarial valuation at the year-end. 

3. Liability towards leave encashment is provided for & debited to Profit & Loss 

Account based on valuation made by LIC. 

4 Bank has opted for contribution to Group Gratuity Trust Scheme and Group 

Leave Encashment Trust Scheme of LIC.

10) PROVISION FOR TAXATION: 

Sr. 

No. 

Particulars 

Current Previous 

Year Year 

Provision for Income Tax - - - - 

11) PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS 

(AS - 29): 

a) Provision of Rs. 4,64,366 is made in respect of suits filed against the bank by 

customers and first appellate authority has decided the case against the bank. 

Provision is made for amount ordered to be made by the first appellate authority. 

b) Employees union of the bank had filed case against the bank raising demand for 

payment of matching contribution to the Provident fund. Case has been decided in 

favor of the bank by High Court and SLP by union is filed at Supreme Court. The matter 

has been heard and is closed for judgement. This, in the opinion of the management, 

does not require any provision. 

-----*****-----

SCHEDULE - 18 NOTES ON ACCOUNTS - FINANCIAL YEAR 20910-11 

1) During the year, bank has migrated its entire 327 branches to Core Banking in last 4 

months of FY. It has not yet conducted migration audit. Hence there are likely to be 

un-detected migration errors. Our audit opinion is subject to migration audit. 

2) Report of the branch auditors and observations given therein form integral part of 

audit report and our audit opinion is subject to comments / observation of branch 

auditors. 

3) Reconciliation of entries as on 30.09.2010 in the Branch Adjustment account and 

other accounts have been drawn. All the branches of the Bank have been reconciled 

with the Head Office as on 30.09.2010. Debit entries pending over 6 months as on 

31.03.2011 are 256 involving amount of Rs. 843.51 lacs whereas credit entries 

pending over 6 months are 5659 amounting to Rs. 24019.02 lacs. Work of 

reconciliation of these entries is in progress. 

Bank is required to provide for at 100% on net debit balance on the entries 

remaining unadjusted beyond Six months in Branch Adjustments Accounts as at year 

end. No provision has been made by the Bank as there is net credit balance in Branch 

Adjustment Account. 

4) New DD account has been introduced in the Bank from 22.09.2009 and DD 

Transactions have been separated from Inter Branch Reconciliation. As on 

31.03.2011, 3185 debit entries pending involving amount of Rs. 4704 lacs and 5226 

pending credit entries amounting Rs. 4860 lacs are pending. Work of reconciliation 

of these entries is in progress. 

5) Fixed assets such as computers, UPS, furniture, inverter and batteries etc. are sent to 

branches by debit to Proceeds in Transit a/c. Entries worth Rs. 212.47 lacs are 

pending in proceeds in transit a/c towards assets sent to branches, since PoB 

realizations are not received from branches. A provision of Rs. 84,60,482/- is made 

by debit to P/L Provisions a/c towards depreciation on assets / write off of expenses 

involved in proceeds in transit a/c 

6) During the year, bank has migrated its entire 327 branches to Core Banking in last 4 

months of FY. Few instances of excess interest application or interest application to 

NPA accounts have been identified by branch auditors. Bank has yet to get migration 

audit completed. To cover up any such instance of excess interest application, bank 

has made an ad-hoc provision of Rs. 3 crore by debit to P/L Provisions and Credit to 

G/L Interest Suspense a/c. The provision in our opinion is adequate. 

7) Amount lying to the credit of Interest Suspense a/c (towards interest applied to the 

Distressed Farmers a/c but not credited to Income a/c and held in Interest Suspense 

a/c) Rs. 1,73,18,482/- has been credited to Profit and Loss a/c, since in the opinion of 

the management, most of the accounts have been recovered in Debit waiver/relief 

scheme.

8) As per RBI Directives, bank had made provision for interest receivable on ADWDR-08 

at the rates applicable to 364 days T-Bill. Total provision so made was Rs. 

1,97,28,716 against which government has paid interest of only Rs. 34,45,000/-. 

Balance amount of Rs. 1,62,83,716/-is not expected to be recovered and has been 

debited to Profit and Loss a/c. 

9) REPO TRANSACTIONS: 

Securities sold under 

Repos 

Securities purchased 

under reserve Repos 

Minimum 

Outstanding 

during the year 

Maximum 

outstanding 

during the Year 

Daily average 

outstanding 

during the year 

As on 31 st 

March 

2011 

- - - - - - - - 

- - - - - - - - 

10) No provision has been made for Interest payable on RD at all 9 branches audited by 

us. Amount and its impact on profit is not quantifiable. 

11) Details of Financial Assets sold to Secularization (SC) / Reconstruction Company (RC) 

for Assets Reconstruction: 

Sr. 

No. 

Particulars 

Current 

Year 

Previous 

Year 

1. No. of Accounts - - - - 

2. Aggregate value (net of provisions) of accounts sold to - - - - 

SC/ RC 

3. Aggregate consideration - - - - 

4. Additional consideration realized in respect of accounts - - - - 

transferred in earlier years 

5. Aggregate gain/ loss over net book value - - - - 

12) At many branches, physical cash balance and book cash balance does not tally. 

Difference amount is lying in system suspense a/c. 

13) Subvention claim receivable from Government under various schemes have been 

accounted for on the basis of calculations made by a) Old software Autobank and b) 

programe designed by PMO for subvention calculation. As observed during the 

course of audit by all branch auditors, calculations provided by PMO software are 

entirely wrong. Bank has explained that they will rework the entire claim amount 

and based on it, claimed will be lodged with Government. Amount of claim booked 

as of now is not correct. 

14) Other notes enclosed herewith in Annexure I forms an integral part of our 

audit report. 

a) Details of Non-Performing Financial Assets purchased /sold is "Nil"

(Rs. Lakh) 

Sr. Particulars Current 

Year 

Previous 

Year 

1(a) No. of accounts purchased / sold during the year - - - - 

(b) Aggregate outstanding - - - - 

2(a) Of these, number of account restructured during the year - - - - 

(b) Aggregate outstanding - - - - 

b) Provision On Standard Asset (Rs. Lakh) 

Sr. Particulars Current Year Previous Year 

Provisions towards Standard Assets 566 566 

15) CAPITAL: 

NABARD vide letter no. NB.IDD/-/CRAR Committee/ 2010-11 dated June 25, 2010 

sanctioned recapitalization support of Rs. 104 crore to the bank, out of which Rs. 94 

crore were to be received in current year and Rs. 10 crore were to be received in next 

year. However, during the year bank has received Rs. 6.80 crore from State 

Government and Rs. 15.87 crore from sponsor bank. 

Department of Financial Services, Ministry of Finance, Government of India vide letter 

no. F.No. 3/8/2010-RRB (i) dated March 31, 2011 ordered to release Rs. 22.67 crore to 

the bank. Accordingly, cheque of Rs. 22.67 crore is said to have been deposited in RBI 

a/c of the bank. Based on order of the Central Government, bank has made provision 

for recapitalization support receivable by corresponding credit to Share Capital 

Deposit a/c. 

The Capital Adequacy Ratio calculated in terms of the guidelines issued by RBI is as under: 

Sr.No. 

Items 

31.03.2011 31.03.2010 

1 CRAR % 9.07% 6.78% 

2 CRAR - Tier I Capital % 8.62% 5.53% 

3 CRAR - Tier II Capital % 0.45% 1.25% 

4 % of the holding of the Government of 

India/ State Government / BoM 

5 Amount of subordinated debt raised as 

Tier II Capital 

50%, 15%, 35% 50%, 15%, 35% 

-- --

16) INVESTMENTS: 

Sr. 

No. 

1 Value of Investments 

Particulars 

Current Year 


( Rs. lakhs) 

Previous Year 

31.03.2010 

i) Gross Value of Investments 85230.41 77359.97 

ii) Provisions for Depreciation 119.45 66.45 

iii) Net Value of Investments 85110.96 77293.51 

2 Movement of provisions held towards depreciation on 

investments 

i) Opening Balance 66.45 348.09 

ii) Add :Provisions made during the year 57.30 12.34 

iii) Less: Write Off/ Write back of excess provisions during 

the year 

4.30 293.98 

iv) Closing Balance 119.45 66.45 

Amount of investments referred to above does not includes investment in bank deposits, 

which is Rs.53553.49 lacs, shown under Balance with other banks in balance sheet as per 

RBI Directives. 

17) Disclosure in respect of Non-SLR Investment portfolio as on 31st March 2011. 

No. 

i) Issuer composition of Non SLR Investments (Rs. in Crore) 

Amount Extent of 

Issuer 

private 

placement 

Extent of 'below 

investment grade' 

Securities already 

invested 

Extent of 

'unrated' 

securities, 

already invested 

Extent of 

'unlisted' 

securities 

(1) (2) (3) (4) (5) (6) (7) 

1 P S Us 18.00 -- -- -- 

2 F I s 10.50 -- -- -- 

3 Banks 23.31 -- -- -- 

4 Private corporate - -- -- -- 

5 Others 6.34 -- -- -- 

6 Provision held 

-- XXX XXX XXX 

towards depreciation 

TOTAL 58.15 -- -- - -

ii) 

Non- Performing Non- SLR Investments: 

Particulars 

Amount (Rs. Crore) 

Opening Balance - - 

Additions during the year since 1 st April - - 

Reductions during the above period - - 

Closing Balance - - 

Total Provisions Held - - 

18) Disclosure under Accounting Standard 5 

a)During the year Rs. 963.00 lacs debited to Profit and Loss account towards 

payment to LIC on account of provision for Gratuity and Rs. 5.00 lacs towards leave 

encashment. 

b)Other than one mentioned above, no material prior period expenditure has been 

debited to Profit and Loss Account. 

18-A) Disclosure of penalties imposed by RBI: 

RBI has not imposed any penalties to the Bank during the Current Financial Year. 

18-B) Floating Provisions: No such provisions held by the Bank. 

19) ASSET LIABILITY MANAGEMENT: 

Maturity pattern of certain Assets & Liabilities as under: 

Maturity pattern of Assets & Liabilities has been worked out by Bank and we rely 

on that 

(Rs. in lakhs) 

Sr. 

No 

Maturity Pattern 

Loans & 

Advances 

ASSETS 

Investments & 

Bank Dep. 

LIABILITIES 

Deposits Borrowings 

1. 1 to 14 days 13477.26 1723.87 12262.75 0.00 

2. 15 to 28 days 7027.82 2100.00 2935.38 0.00 

3. 29 days to 3 months 9838.94 13070.00 4883.16 1926.81 

4. Over 3 months to 6 months 6929.43 12801.36 6830.94 8452.30 

5. Over 6 months to 12 months 10387.11 26418.29 14649.45 6132.92 

6. Over 1 year to 3 years 72586.30 12985.78 190747.12 2098.76 

7. Over 3 years to 5 years 17316.54 13556.59 29298.94 690.74 

8. Over 5 years 6706.64 56128.03 12729.13 0 

Total 144270.04 138783.92 274336.87 19301.55

20) Movement of NPA during the year: 

Particulars 

(Rs. in Lacs) 

31st March 2011 31st March 2010 

Gross NPA as at the commencement of the year 6992.55 7002.80 

Additions during the year 2483.15 2882.28 

Less Reduction during the year 

i) Amounts recovered 1426.55 1847.16 

ii) Amounts Written Off 436.60 901.11 

iii) Upgradation 42.66 144.26 

Gross NPAs as at the close of the year 7569.89 6992.55 

Less Provisions 4360.06 4173.02 

Net NPA as at the close of the year 3209.83 2806.20 

21) Movement in provision for Non Performing Advances: 

(Rs. in Lacs) 

Particulars 

31st March 


31st March 

2010 

Opening balance (excluding provisions on standard assets) 4173.02 5054.80 

Add: Provision made during the year 623.65 240.00 

Less: Write Off during the year 436.60 1121.78 

Closing Balance 4360.07 4173.02 

22) Disclosure of complaints: 

A. Customer Complaints - 

Sr. Particulars Details 

a No. of complaints pending at the beginning of the year 17 

b No. of complaints received during the year 63 

c No. of complaints redressed during the year 74 

d No. of complaints pending at the end of the year 06 

B. Award passed by the Banking Ombudsman - 

Sr. Particulars Details 

a No. of unimplemented Awards at the beginning of the year Nil 

b No. of Awards passed by the Banking Ombudsman during the year Nil 

c No. of Awards implemented during the year Nil 

d No. of unimplemented Awards at the end of the year Nil

23) Details of Loans Assets subject to Restructuring 

i 

ii 

iii 

iv 

Particulars 

Current 

Year 

Previous Year 

Total amount of loan assets subject to restructuring, rescheduling, 

renegotiation Nil Nil 

The amount of Standard assets subjected to restructuring, 

rescheduling, renegotiation Nil Nil 

The amount of Sub-Standard assets subjected to restructuring, 


The amount of Doubtful assets subjected to restructuring, 


Note [ (i) = (ii) + (iii) + (iv)] Nil Nil 

24) Exposure to Real Estate Sector 

(Rs. in lakhs) 

Sr. Category Current Year Previous 

Year 

a Direct exposure 

i) Residential Mortgages 

15885.44 6896.10 

Lending fully secured by mortgages on residential property 

that is or will be occupied by the borrower or that is rented 

(individual housing loan upto Rs. 15 lakh may be shown 

separately) 

ii) Commercial Real Estate 

Lending secured by mortgages on commercial real estates 

(office buildings, retail space, multi-purpose commercial 

premises, multi-family residential building, multi-tenanted 2037.50 560.25 

commercial premises, industrial or warehouse space, hotels, 

land acquisition, development and construction, etc.) 

Exposure would also include non-fund based (NFB) limits; 

iii) Investments in Mortgage Backed Securities (MBS) and other 

-- -- 

securitized exposures 

a. Residential -- -- 

b. Commercial Real Estate -- -- 

b) Indirect Exposure 

Fund-based and non-fund based exposures on National 

Housing Bank (NHB) and Housing Finance Companies (HFCs) 

-- -- 

25) Details of Single Borrower (SGL), Group Borrower Limit (GBL) exceeded by the Bank: 

- - N I L - -

26) Maintenance of CRR: 

During current financial year the Bank has maintained adequate average balance 

with RBI in compliance to the CRR requirement. 

27) Following ratios have been calculated as per NABARD guidelines: 

Particulars 

As on 31 st 

March, 


(Rs in crores) 

As on 31 st 

March, 2010 

Percentage of Net NPAs to net Advances 1.97 2.36 

Interest income as a percentage to working funds 8.12 8.50 

Non interest income as a percentage to working funds 0.66 0.82 

Operating Profit as a percentage to working funds 0.84 1.38 

Return on Assets 0.38 0.72 

Business (Deposits + Advances) Per Employee 3.22 2.77 

Gross Profit Per Employee 0.018 0.02 

Net Profit Per Employee 0.009 0.015 

28) The Bank has maintained the Statutory Liquidity Ratio (SLR) @ 25% of Demand & 

Time Liabilities by investing with the NABARD & in Government Securities. Bank has 

also maintained Cash Reserve Ratio as per applicable rates (presently 6.00%) of 

Demand & Time Liabilities with Reserve Bank of India for financial year. 

29) The figures have been rounded off to the nearest thousands. Figures in bracket 

indicate negative amounts. Figures shown in the tables/ annexure/ charts are as 

given and certified by the management. 

30) Previous year's figures have been re-grouped / re-classified wherever necessary to 

confirm Current year's classification. 

FOR MANDHANA & ASSOCIATES 

CHARTERED ACCOUNTANTS 

FOR MAHARASHTRA GRAMIN BANK 

CA. RAJENDRA S MANDHANA 

PARTNER 

M. No. 109511 FRN.121195W 

ASHOK MAGDUM 

CHAIRMAN 

H N DHANURKAR 

DIRECTOR 

M K CHANDEKAR 

DIRECTOR 

V R GUPTA 

DIRECTOR 

A D DESHPANDE 

DIRECTOR 

EKNATHRAO DAWALE 

DIRECTOR 

SHRIKAR PARDESHI 

DIRECTOR



Provision for 

1 Bad & Doubtful debt 

2 Non Performing Investment 

Particulars 

3 Deprecation in Investment (Mark to Market valuation) 

4 Gratuity Payment 

5 Leave Balance (P/L) 

6 Fraud 

7 Inter Bank Reconcilation (Mahur Br) 

8 Cash theft (Shiradhon Br) 

9 FBT 

10 Debit Balance in S/B 

Total (1 + 8) 

Less : Write back provision 

investment 

Less : Write back provision 

investment 

Current 

Year 

(Amt. in 

thousand) 

Previous 

Year 

623 

65 24000 

0 

573 

0 

430 

0 57423 

0 

846 

0 

300 

00 

50 

464 

0 

111 

370 

Less : Write back provision of NPA 0 

Less : Write back provision of Non 

performing invest. 

Total Net Provisions 

0 

0 

0 

81423 

111 

370 81423

BalanceSheet 2011 - maharashtra gramin bank

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