SHIVALIK MERCANTILE CO-OPERATIVE BANK LTD....Apr 16, 2017 · districts of Dhar, Indore, Ujjain, Dewas and West Nimar in Madhya Pradesh. ØIn 2012-13 we opened 7 more branches (one

SHIVALIK MERCANTILE CO-OPERATIVE BANK LTD.Regd. Office : 13/1207, Ansari Road, Saharanpur-247001 (U.P.)

Head Office & Branch : Hakikat Nagar, Saharanpur-247001

Ansari Road Branch : 13/1207, Ansari Road, Saharanpur-247001

Chilkana Road Branch: Gyan Garden, Chilkana Road, Saharanpur-247001

Gangoh Branch : Rambagh Road, Gangoh-247341, Distt. Saharanpur

Deoband : Manglore Chowki, G.T. Road, Deoband-247554, Distt. Saharanpur

Ambehta Branch : Main Road, Ambehta-247340, Distt. Saharanpur

Sarsawa Branch : Main Market, Sarsawa, Distt. Saharanpur

Nagal Branch : G.T. Road, Nagal, Distt. Saharanpur

Nanauta Branch : Deoband Road, Nanauta, Distt. Saharanpur

Rampur Branch : Moh. Mahajanan, Rampur Maniharan, Distt. Saharanpur

Meerut Branch : C-2/6, Nai Sadak, Shastri Nagar, Meerut-250001

Noida Branch : Sector 27, Near Vinayak Hospital, Noida-201301

Ghaziabad Branch : Bhatiya Mor, G.T. Road, Ghaziabad-201001

Dhar Branch : Chhota Rajwada, Dhar-454001 (M.P.)

Indore Branch : Bhagwati Palace, 100 Jaora Compd., Indore-452001 (M.P.)

e-mail : [email protected], web : www.shivalikbank.com

Telefax 3

Telefax: (0132) 2612381, 2612382, 9927145550

Telefax: (0132) 2650021, 9690990033

Telefax: (01331) 234437, 234438, 9927116660

Telefax: (01336) 222808, 9568880001

Telefax: (01331) 225311, 9927165550

Telefax: (01331) 246125, 9690004994

Telefax: (01336) 231112, 9690004794

Telefax: (01336) 253125, 9927986125

Telefax: (01336) 252125, 9927007125

Telefax: (0121) 2604364, 9690563000

Telefax: (0120) 2555333,09540407222

Telefax: 8750037222

Telefax: (07292) 222413

Telefax: (0731) 2704268, 9424024399

: (0132) 2726125, 2726147, 99271 5550

16th ANNUAL REPORT 2012–2013

CONTENTS

Page No.

1. Board of Directors 3

2. Notice of Annual General Meeting 5

3. Message from the Chairman 6

4. Progress of Bank 8

5. Annual Report 9

6. Auditor's Report 14

7. Balance Sheet 16

8. Profit and Loss Account 18

9. Significant Accounting Policies and Notes on Accounts 27

10. Appropriation of Profit for the year 2012-13 37

11. Budget of the Bank for the year 2014-15 38

12. Targets of the Bank for the year 2014-15 38

13. Our Profile and Achievements 39

14. Our Customer Service Initiatives 42

Shiv Puran GulatiVice Chairman

Dr. Sanjeev MittalDirector

Dr. Kamal KantDirector

Satyasheel Rao PawarNominated Director

Sudhakar AgarwalDirector

Sarvesh SinghalDirector

Anvesh GargDirector

Yashvir Kumar GuptaChairman

Sanjay GuptaDirector

Pradeep Kumar GargDirector

Vijay Kumar DhingraDirector

Ram Sudhar, Former DGM RBISpecial Invitee Director

BOARD OF DIRECTORS

3

DIRECTORS OF THE BANK

S.No. Name Designation

Address

Office Residence

1

2

3

4

5

6

7

8

9

10

11

12

Sh. Yashvir Kumar Gupta

Sh. Shiv Puran Gulati

Sh. Sudhakar Agarwal

Sh. Sanjay Gupta

Dr. Sanjeev Mittal

Sh. Sarvesh Singhal

Sh. Pradeep Kumar Garg

Dr. Kamal Kant

Sh. Anvesh Garg

Sh. Vijay Kumar Dhingra

Sh. Satyasheel Rao Pawar

Sh. Ram Sudhar

Chairman

Vice-Chairman

Director

Director

Director

Director

Director

Director

Director

Director

Nominated

Spl. Invitee

Chartered Accountant

Advocate

Director

Director

Devendra Service Station,Ambehta, Distt. SaharanpurTel. : (01331) 225204, 225206

Indian Herbs Research & Supply Co. Ltd. Sharda Nagar, SaharanpurTel.: (0132) 2727920

City Railway Booking AgencyRailway Road/ Gurudwara Road, SaharanpurTel.: (0132) 2724346 2643862

15 Kishore Bagh, Delhi RoadSaharanpurTel.: (0132) 2762856, 2763530

Janakpuri Chowk, Dehradun RoadSaharanpurTel.: (0132) 2661399

Opp. H.D.F.C. Bank, 1st FloorCourt Road, Saharanpur

Daas Service StationDeoband, Distt. SaharanpurTel.: (01336) 222253, 222248

Moh. Baburai Gangoh, Distt. SaharanpurTel.: (01331) 232225

Om Rice Mill, Main RoadAmbehta, Distt. SaharanpurTel.: (01331) 225221

C/o Jai Bharat Auto EngineersG.T. Road, Near Flyover, GhaziabadTel.: (0120) 4165463Mob.: 9311585595

Satya Villa, Ratlam RoadNaugaon, Dhar, M.P.Tel.: (07292) 233370

1/188 Viram KhandGomti Nagar, LucknowTel.: (0522) 2394642

1/188 Viram KhandGomti Nagar, LucknowTel.: (522) 2394642

13/1207, Ansari RoadSaharanpurTel.: (0132) 2644586Mob.: 9837050500

'Ashirwad' Gill ColonySaharanpurTel.: (0132) 2727228, 2722638Mob.: 9719217802

B-85 Avas Vikas ColonyDelhi Road, Saharanpur Tel.: (0132) 2760931Mob.: 9837010385

15, Kishore bagh, Delhi RoadSaharanpurTel.: (0132)2762856, 2763530Mob.: 9837029705

Janakpuri Chowk, Dehradun RoadSaharanpurTel.: (0132) 2661399Mob.: 9837058835

5 Phase-II Pant Vihar, SaharanpurTel.: (0132) 2765464Mob.: 9837260747

Moh. ChahparasDeoband, Distt. SaharanpurTel.: (01336) 222348Mob.: 9837365258

Moh. Baburai, GangohDistt. SaharanpurTel.: (01331) 232225Mob.: 9412557048

Moh. Bazar KalaGangoh, Distt. SaharanpurTel.: (01331) 232055Mob.: 9412557239

Parshvnath Majestic Floors T-II203-A Indirapuram, GhaziabadMob.: 9310461900

Satya Villa, Ratlam RoadNaugaon, Dhar, M.P.Tel.: (07292) 233370

NOTICE FOR ANNUAL GENERAL MEETING

Dear Shareholder,

Annual General Meeting of the Bank is scheduled to be held on Sunday, 30 June 2013 at

10:00 am at Hotal Royal Residency, Opp. Kalpana Talkies, Ambala Road, Saharanpur to

transact the following business :

Agenda

1. To confirm the proceedings of last AGM.

2. To consider and approve the Annual Report for 2012-13.

3. To consider and approve the Balance Sheet & Profit & Loss Account of the Bank for 2012-13.

4. To review actual utilization of reserves and other funds during the year 2012-13.

5. To consider the Report of Statutory Auditors and Compliance thereof for the year 2012-13.

6. To appropriate net profit and declare dividend as recommended by the Board of Directors for the

year 2012-13

7. To consider and approve the Budget for 2014-15.

8. To consider and approve the Targets of the Bank for 2014-15.

9. To appoint Statutory Auditors for 2013-14 and to authorize the Board of Directors to fix their

remuneration.

10. To take note of the loans and advances outstanding from Directors and their relatives during the

year 2012-13.

11. Other items if any, with the approval of Chairman.

Dated : 05-06-2013

- Signed -

(Chief Executive Officer)

A Bank for Your Welfare

5

MESSAGE FROM THE CHAIRMAN


6

Dear Shareholder,

It is a matter of great pleasure for the Board, all officers of the Bank and myself to welcome you to the 16th Annual

General Meeting of Shivalik Bank.

Although the bank has been registering steady growth since its inception in 1998, this concluded year 2012-13 has

been very pleasant and a memorable one. There have been many landmark achievements during this year. I wish to

share my happiness with you for the following progressive steps undertaken by the bank:

ØWe completed the process of merger of Malwa Commercial Co-op. Bank Ltd. Indore into our bank and with this, our

Indore branch is running successfully.

ØThe area of operation for our bank now includes state of Uttar Pradesh and the entire

districts of Dhar, Indore, Ujjain, Dewas and West Nimar in Madhya Pradesh.

ØIn 2012-13 we opened 7 more branches (one each in Meerut and GZB and 5 branches

in Distt. Saharanpur at Chilkana Road, Sarsawa, Nagal, Nanauta, Rampur Maniharan).

Thus, we have got 15 branches-strong network at the end of 2012-13.

ØWe have received permission to open 6 more branches

Ø2 in Saharanpur city

Ø2 in District Muzaffarnagar (Muzaffarnagar and Khatauli)

Ø1 in Ghaziabad

Ø1 in NOIDA

ØSuch branch expansion will help us to improve the key parameters (CASA

deposits, SME loans and priority sector lending) as we move forward.

ØNet worth of the bank has crossed 25 crore mark and having achieved this figure, we

have applied to RBI for direct membership of RTGS / NEFT network.

ØWith a view to enhance our fee-based income, we have been eager to offer foreign

exchange services to our customers. RBI has now authorised us to deal in foreign exchange under AD Category II.

This will open up new avenues of business growth for us.

ØThe bank is now able to offer 24 hours access of their SB / CA accounts to our customers through ATM network. We

are not only issuing ATM-cum-Debit Cards linked to NFS but are also installing our ATMs at all branches.

ØRBI has allowed us to set up offsite ATMs and we are going to install our first offsite ATM at Nakur where we don’t have

a branch yet. There has been great demand from the people of Nakur to open a branch there and it pleases us to be

able to offer at least some services to the people of Nakur.

ØWe also plan to extend our operations to other states. For this increase in our networth will be required. After

achieving 50 crore figure of net worth, RBI will allow us to open our branches in other states also. This would enable

us to open branches in adjoining states of Uttarakhand, Haryana, Himachal Pradesh and Delhi NCR. Our branches in

2012-13 at a Glance

One bank merged in our bank at Indore.

7 branches opened.

ATM-cum-Debit Card launched.

Bank became fully CBS-compliant.

ATMs installed at various branches.

Area of operation extended in M.P.

Facility of NEFT/RTGS being granted to customers.


7

Roorkee, Hardwar, Dehradun, Nahan, Yamunanagar etc., will further boost our business.

ØThe Bank would be appointing Business Correspondents in Nakur and elsewhere for opening of new accounts and

offering limited banking services to the public. Thus, we would start getting business from such places also where we

don’t have branches as yet.

ØWith a view to offer competitive services to our customers, we have removed the provision of penalty for non-

maintenance of minimum balance in Savings Bank accounts.

ØBank is now not charging any fee from its customers for effecting RTGS and NEFT.

ØBank had introduced Gold Loan scheme and in view of the encouraging response from the customers, we have asked

all our branches to offer this facility to all eligible customers.

We take special pride in the fact that we conform to all the performance and financial parameters laid down by

Reserve Bank of India and other regulatory authorities and all of our branches are running successfully. Keeping in line

with our tradition of excellence in customer service and overall admirable functioning, our Bank's various branches have

performed very well indeed.

Again, it is a matter of great satisfaction that despite phenomenal growth in advances, the

Gross NPA figure which was 0.24% has come down to 0.23% this year. Net NPA is now NIL. Our

Capital Adequacy Ratio (CRAR) at 14.28% also places us in a very

comfortable situation being well above statutory requirement of 9%.

Both of these financial indicators reveal a lot about the good health of

our Bank, a matter of great satisfaction.

We are proposing the dividend @ 12% this year also which is quite

attractive in present scenario. This reflects favorably on the health and

profitability of the bank because before paying 12% dividend, we are

also required to pay income tax @ 30% app.

Before I conclude, I must convey my sincere thanks to all the stake holders, the board of

directors, all employees of the Bank because without their utmost cooperation and untiring

efforts, this success would not have been achieved. I wish to take the opportunity to thank all

the clients and customers of the Bank. Ultimately, it is they who make a business enterprise

successful or otherwise. I hope that the same kind of support, cooperation and guidance would

continue in future also.

Thanks to all of you once again. With warm regards and best compliments,

Sd/-

(Yashvir Kumar Gupta)

Chairman

Immediate Plans

Membership for RTGS/NEFT

Offsite ATMs to be installed.

6 more branches to be opened.

Crossing networth of 50 crore and opening branches in neighbouring states.

Foreign Exchange business.

PROGRESS OF BANK

thBank has completed 15 financial year after start of the operation on 5th September 1998. The

progress of the Bank for the last 3 financial years is as below :

8

Rs. in Lacs

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

12.

13.

14.

15.

16.

17.

ÿ-la- Description 31.03.2011 31.03.2012 31.03.2013fooj.k

va'kiwath

dks"k ,oa ladfyr ykHk

tekjkf'k

Ω.k o vfxze

ykHk] vk;dj ls igys

ykHk] vk;dj ds ckn

ykHkka'k

xSj fu"iknd ifjlEifŸk;ka

iawth i;kZIrrk ekunaM

Ω.k tek vuqikr

'kqº ewY;

tek dh ykxr

Ω.k ij izkfIr

fuos'k ij izkfIr

izfr deZpkjh O;kikj

cpr [kkrksa dh la[;k

pkyw [kkrksa dh la[;k

Share Capital

Reserves & Accu. Profit

Deposits

Loan & Advances

Profit before tax

Profit after tax

Dividend

NPA

CRAR

CD Ratio

Net Worth

Cost of Deposits

Yield on Loans

Yield on Investments

Business per employee

No. of Savings Accounts

No. of Current Accounts

757.22

464.82

18096.66

9378.09

147.63

108.31

12%

1.94%

13.35%

51.82%

1330.35

6.75%

11.28%

8.29%

305.28

19476

2019

1163.36

520.42

24578.10

14518.74

274.75

201.85

12%

0.24%

13.24%

59.07%

1885.63

7.40%

12.01%

8.10%

403.00

22927

2495

# Proposed, subject to approval in AGM


2236.64

604.97

31846.18

22008.05

312.04

217.12

#12%

0.23%

14.28%

69.11%

3058.74

8.13%

12.85%

8.77%

345.22

31465

4459

ANNUAL REPORT


Hon'ble Members of the Bank,thI welcome all of you at this 16 Annual General Meeting of the Bank, which is a befitting occasion to

take stock of the progress being made by your bank. I have the privilage to present before you the report for financial year ending 2012-13 and hope that you would be immensely pleased to note the progress of the bank at all fronts. It gives me immense pleasure to give you a bird's eye view of the financial performance of our bank with the help of key financial indicators :

Summarised Financial Results :

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

12.

No. of Members

Share Capital

Reserves &

Accumulated Profit

Deposits

Term Deposits

Saving Deposits

Current Deposits

Total

Loans & Advances

Short Term Advances

Medium Term Advances

Long Term Advances

Total

% of Overdue Advances

to Total Advances

Priority Sector Advances

Ratio of Priority Sector

Advances to Total Advances

Investments

Term Deposits in Banks

In Govt., Approved

Securities & others

Total

Working Capital

Net Profit (Before Tax)

Net Profit (After Tax)

31-03-2012 dks 31-03-2013 dks o"kZ esa gqbZ ofºAs on 31.03.2012

(Rs. In Lacs)As on 31.03.2013

(Rs. in Lacs)% Growth

(Percentage)

lnL; la[;k

va'kiwath

dks"k ,oa

ladfyr ykHk

tekjkf'k

(d) fe;knh tek

([k) cpr [kkrk

(x) pkyw [kkrk

;ksx

Ω.k o vfxze

(d) vYikof/k

([k) e/;kof/k

(x) nh?kkZof/k

;ksx

vfrns; Ω.k dk

izfr'kr dqy Ω.k ls

izkFkfedrk ks= Ω.k

izkFkfedrk ks= Ω.k

dk dqy Ω.k ls izfr'kr

fuos'k

(d) cSadksa esa fe;knh tek

([k) ljdkjh] vuqeksfnr

izfrHkwfr;ksa esa ,oa vU;

;ksx

dk;Z'khy iwath

'kqº ykHk (vk;dj ls igys)

'kqº ykHk (vk;dj ds ckn)

7015

1163.36

520.42

18764.04

5167.91

646.16

24578.11

6616.79

2494.84

5407.12

14518.75

0.27%

5885.95

40.54%

2920.67

6850.82

9771.49

26812.78

274.75

201.85

9

7601

2236.64

604.97

24295.02

6021.61

1529.56

31846.18

10767.83

3226.81

8013.40

22008.05

0.52%

8911.00

61.37%

2386.05

7266.16

9655.21

35264.03

312.04

217.12

8.35%

92.26%

16.25%

29.48%

16.52%

136.72%

29.57%

62.73%

29.34%

48.20%

51.58%

92.59%

51.39%

51.38%

(-) 18.30%

6.06%

(-) 1.19%

31.52%

13.57%

7.57%

10

thAs is evident from the above, business of the Bank continued to grow in its 15 year of functioning

also. We had fixed for ourselves some ambitious targets for the just concluded financial year and you

would be delighted to know that we surpassed even those targets with considerable margin. Here

are the lighlights of bank's achievements and growth :

DEPOSITS

We have garnered deposits to the tune of 318.46 crores against the targetted figure of 300.00 crores.

Thus it is a growth of 29.57% over the previous year.

LOANS AND ADVANCES

Not willing to be left behind, our loans and credit portfolio registered a phenomenal growth rate of

51.58% - taking last year's figure of 145.18 crore to 220.08 crore. We have been able to maintain the

gross NPA at 0.23% which was 0.24% last year. Thus it is a growth not only in quantity but quality too.

With sufficient provisioning, our net NPA is nil.

PRIORITY SECTOR ADVANCES

Our bank is playing the role given to it by the nation's regulatory agencies including Reserve Bank of

India with full enthusiasm and initiative with the result that our Priority Sector advances are 61.37% of

total advances more than the obligatory 40% and stand at 8911.00 lacs.

FINANCIAL INCLUSION

While on the topic of priority sector advances, it seems in place to mention the admirable initiative

taken by our bank to do something worthwhile in the field of Financial Inclusion. Our Micro-finance

portfolio is a booming one and feeling happy with the experience and results achieved so far, we have

expanded the area and our commitment for the same. Not only our rural and semi urban branches

but also the urban and metro branches are offering micro finance to eligible self-help-groups.

SHARE CAPITAL

Over the year, Bank's share capital has grown from last year's Rs. 1163.36 lacs to 2236.64 lacs which

is an increase of 92.26% or an increase of 1073.28 lacs. This also explains why we are very

comfortably placed in view of RBI's norms of CRAR. As against 9% stipulated, our CRAR is 14.28%.

PROFIT AND INCOME TAX

Net Profit for the year after tax is Rs. 217.12. It is remarkable in view of the fact that in this year Bank

has invested into technology and saw major expenditure in opening of new branches with one

merger at Indore.


11


AUDIT AND INSPECTIONS

Statutory Audit

The statutory auditors M/s. G.P. Gupta & Co., Chartered Accountants have been quite appreciative of

the functioning of our Bank and have gone to the extent of saying that they have found our systems

and procedures much better compared to other cooperative banks audited by them.

Concurrent Audit

In compliance of the instructions of RBI, concurrent audit of all branches of the bank is done on

regular basis by retired senior bankers who had been working in different public sector banks.

Internal Audit

A well-qualified chartered accountant firm of Delhi has been engaged by the Bank as Internal Auditor/

Consultant to carry out internal audit and suggest improvements wherever necessary. Many

suggestions received from the firm have proved to be quite useful for the bank. In addition the

surprise internal audit of one branch is performed by the Manager of another branch. Audit of Loans

portfolio also is separately being done by a seasoned banker.

Inspections

Bank's senior officers visit different branches for surprise checks and for proper guidance.

BANK'S FUNCTIONING AND MISC. ASPECTS :

Core Banking Solution (CBS)

All branches of our bank as well as Head Office are functioning with CBS technology and this has

enabled us to offer various other technology - based services like ATM-cum-Debit Cards, ATMs at our

branches etc. Many more value added services like Mobile banking, Net banking are also in the pipe

line and will be launched soon.

ATM

After getting connected ourselves with Rupay i.e. NFS network as a sub-member, we have started

installing ATMs at all of our branches. ATMs at Noida, Meerut, Ghaziabad, Ansari Road and Chilkana

road are already providing service to the customers and members of general public. Besides On-site

ATMs at all of our 21 branches, we propose to install several off-site ATMs also in such areas where

we don’t have our branch yet.

12


NEFT / RTGS

The bank has also obtained IFS Code and is now participating in the RTGS / NEFT as a sub-member

of IDBI Bank Ltd.

FREE SMS

Our bank offers the facility of free SMS to all of its Savings Bank, CC and Current account holders.

Thus, whenever some transaction takes place in their account, they get an SMS instantly on their

mobile phone registered with us for this purpose.

OTHER ASPECTS

Bank continues to honour its decision not to grant any advance against the security of shares and

debentures. Similarly, bank does not invest in share market also. For the purpose of investments,

bank chooses only govt. and trustee securities, debt instruments and maintains its deposits with

various Scheduled banks only.

The Bank is enjoying 'A' rating from the Auditors.

The Bank continues to be a subscriber of DICGC (Deposit Insurance and Credit Guarantee

Corporation) scheme as per requirement of RBI and is thus extending the benefits of it to bank's

constituents also.

The Bank complies in letter and spirit, with the demands, suggestions, guidelines, instructions of

Reserve Bank of India as contained in their various letters and circulars.

All branches of the Bank and Head Office are fully air-conditioned and are a pleasure to the eyes for

the visiting public.

Home Banking scheme as implemented by the Bank places us a class apart from other banks and is

highly appreciated by the beneficiaries of the same.

In house training facility is available to all staff members.

OUR FUTURE PLANS

New Branches :

We have obtained permission of the Reserve Bank of India to open 6 more branches. Two of these

branches will be opened in Saharanpur city, one in Muzaffarnagar, one in Khatauli, one branch each

in Noida and Ghaziabad. Thus, we would be having 21 branches shortly.

13


Business :

Under the able guidance of our Board of Directors and due to great devotion of staff towards their

duties, we have been able to secure more and more business for the Bank. We hope to grow in leaps

and bounds in the days to come as we shall have stronger presence in western U.P. Out of which two

branches would be in NCR.

The Bank is fully computerized and is offering various services, some of which may be mentioned

hereinbelow:

1. Outward and Inward Remittances anywhere in India. No charges for NEFT / RTGS.

2. Free SMS about each financial transaction in their SB, CC and CD Accounts.

3. Loans and advances at very competitive interest.

4. Easily available lockers.

5. Extended business hours, 10.00 a.m. to 5.00 p.m. (during weekdays) and 10.00 a.m. to 2 p.m.

(Sat.) without any lunch break.

6. CBS Banking.

7. Fast collection of outstation instruments at very low rates.

8. Issue of ATM-cum-Debit Cards to customers holding SB or Current Account with us.

All of our branches are air conditioned, CBS compliant and are situated very conveniently and are

attractively decorated.

We have started providing finance against gold ornaments also with minimal paper work and

formalities. This scheme is gaining popularity among our customers and after successful trial at local

branches in Saharanpur, we have extended the area of operation to more and more branches.

I am confident that if we continue to get the same kind of highly valuable cooperation and kind

blessings of all of you, we would be scaling new heights in the days to come.

Thank you,

Sincerely,

Sd/-

(Suveer Kumar Gupta)

MD & CEO

14


G.P. GUPTA & CO.

STATUTORY AUDITOR'S REPORT

C H A RT E R E D A C C O U N TA N T S

IInd Floor, SAS House, 6-B,Sapru Marg, Lucknow-226001. Phones-0522-3012028, 4002432Fax-0522-3012840, [email protected], [email protected]

To,

The Managing Committee,

SHIVALIK MERCANTILE CO-OPERATIVE BANK LTD.

Saharanpur

1. We have audited the accompanying Financial Statements of M/S SHIVALIK MERCANTILE CO-

OPERATIVE BANK LTD. (PAN-AAAAS3251Q) having Registered Office at Ansari Marg, Saharanpur,

247001 which comprise the Balance Sheet as at 31st March 2013 and Profit and Loss Account for year ended on

31st March 2013.

Management's Responsibility for the Financial Statements:

2. Management of the Bank is responsible for the preparation of these Financial Statements and give true and

fair view of the financial position and financial performance of the Branch in accordance with the Banking

Regulation Act, 1949 complying with Reserve Bank of India guidelines from time to time. This responsibility

includes the design, implementation and maintenance of internal control relevant to the preparation and fair

presentation of the financial statements that are free from material misstatement, whether due to fraud or error.

Auditors' Responsibility:

3. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted

our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of

India. Those standards require that we comply with ethical requirements and plan and perform the audit to

obtain reasonable assurance about whether the financial statements are free from material misstatement.

4. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the

financial statements. The Procedures selected depend on the auditors' judgement, including the assessment of

the risks of material misstatement of the financial statement, whether due to fraud or error. In making those risk

assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of

the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit

also includes evaluating the appropriateness of accounting policies used and the reasonableness of the

accounting estimates made by management, as well as evaluating the overall presentation of the financial

statements.

15


Place : Saharanpur

Date : 28.04.2013

for G. P. GUPTA & CO.Chartered Accountants

(Firm Reg. No. 04998C)

sd/-( CA G.P. Gupta )

Partner (M No. 073778)

5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our

Audit opinion.

Opinion

6. In our opinion, as shown by books of branch, and to the best of our information and according to the

explanation given to us, read with the Memorandum of Changes mentioned in paragraph 10 below, the

financial statements give a true and fair view in conformity with the accounting principles generally accepted in

India:

(a) in the case of the Balance Sheet, of the state of affairs of the Branch as at March 31, 2013; and

(b) in the case of Profit and Loss Account, of the Net Profit for the year ended on that date;

Report on Other Legal and Regulatory Requirements

7. The Balance Sheet and the Profit and Loss Account have been drawn up in accordance with Section 29 of the

Banking Regulation Act, 1949;

8. Subject to the limitations of the audit as indicated in Paragraphs 3 to 5 above , we report that:

a. We have obtained all the information and explanations which to the best of our knowledge and belief were

necessary for the purpose of the audit and have found them to be satisfactory.

b. The transactions of the branch which have come to my/our notice have been within the powers of the Bank.

9. We further report that:

a the Balance Sheet and Profit and Loss account dealt with by this report are in agreement with the books of

account and returns;

b. in our opinion, proper books of account as required by law have been kept by the branch so far as appears

from our examination of those books;

BALANCE SHEET AS ON 31ST MARCH 2013

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

CAPITAL

RESERVE FUND & OTHER RESERVES

DEPOSITS & OTHER ACCOUNTS

BORROWINGS

BILLS FOR COLLECTION BEING BILLS

BRANCH ADJUSTMENTS

OVERDUE INTEREST RESERVES (ON NPA)

OTHER LIABILITIES & PROVISIONS

PROFIT & LOSS

GRAND TOTAL

CONTINGENT LIABILITIES

CAPITAL & LIABILITIES SCHEDULECURRENT YEAR

31-03-2013PREVIOUS YEAR

31-03-2012

1

2

3

4

5

RECEIVABLE (AS PER CONTRA)

Contd...

11,63,36,200.00

3,64,02,505.00

2,45,78,10,034.26

-

2,20,346.00

-

3,73,088.00

3,45,31,295.01

3,58,25,110.63

2,68,14,98,578.90

1,20,65,000.00

16

(Amount in Rs.)


22,36,64,400.00

5,16,91,451.00

3,18,46,18,375.81

-

3,43,946.00

14,057.00

4,21,095.00

3,54,75,897.90

3,05,18,087.10

3,52,67,47,309.81

1,49,43,600.00


BALANCE SHEET AS ON 31ST MARCH 2013

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

CASH IN HAND & BALANCE WITH RBI

BALANCES WITH OTHER BANKS

MONEY AT CALL & SHORT NOTICE

INVESTMENTS

ADVANCES

INTEREST RECEIVABLE

BILLS RECEIVABLE BEING BILLS

FIXED ASSETS LESS DEPRECIATION

OTHER ASSETS

GRAND TOTAL

PROPERTY & ASSETS SCHEDULECURRENT YEAR


31-03-2012

6

7

8

9

10

FOR COLLECTION (AS PER CONTRA)

Contd...

2,91,08,538.00

41,01,31,938.92

-

69,00,55,412.00

1,45,18,74,019.33

6,67,92,690.64

2,20,346.00

1,18,00,283.05

2,15,15,350.96

2,68,14,98,578.90

17

(Amount in Rs.)

2,43,55,558.00

38,92,74,449.50

-

77,60,89,632.00

2,20,08,04,590.56

7,93,59,945.44

3,43,946.00

3,55,80,671.59

2,09,38,516.72

3,52,67,47,309.81

3,73,088.00OF WHICH OVERDUE

As per our report of even date attachedFor G. P. Gupta & Co. (Chartered Accountant)

sd/-(G.P. Gupta)PARTNER

sd/-(Sudhakar Agarwal)

DIRECTOR

sd/-(Sarvesh Singhal)

DIRECTOR

sd/-(Suveer Kumar Gupta)

MD & CEO

sd/-(Shiv Puran Gulati)VICE CHAIRMAN

sd/-(Yashvir Kumar Gupta)

CHAIRMAN

4,21,095.00


PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH 2013

INTEREST ON DEPOSITS, BORROWINGS ETC.(I) INTEREST ON DEPOSITS(ii) INTEREST ON BORROWINGS(iii) OTHER INTEREST

SALARIES, ALLOWANCES, PROVIDENT FUNDBONUS & GRATUITY ETC.

RENT, TAXES, INSURANCE, LIGHTING ETC.(i) BUILDING RENT(ii) TAXES(iii) INSURANCE(iv) LIGHTING

LAW CHARGES

POSTAGE & TELEPHONE CHARGES(I) POSTAGE(II) TELEPHONE

(III) COMPUTER NETWORKING, CONNECTIVITY & HOSTING

AUDIT & CONSULTANCY FEES

DEPRECIATION AND REPAIRS(i) DEPRECIATION(ii) REPAIRS

STATIONERY, PRINTING AND ADVERTISEMENT(i) PRINTING & STATIONERY(ii) ADVERTISEMENT

EXPENDITURECURRENT YEAR


31-03-2012

Contd...

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

TOTAL

TOTAL

TOTAL

TOTAL

TOTAL

15,78,56,415.4311,06,593.00

-15,89,63,008.43

2,45,75,626.00

41,22,324.0011,04,370.0023,10,994.0017,62,849.45

93,00,537.45

12,825.00

16,672.002,32,281.003,35,891.00

5,84,844.00

22,13,981.00

28,66,259.7317,22,710.11

45,88,969.84

6,43,964.983,43,488.50

9,87,453.48

18

(Amount in Rs.)

22,34,40,371.7913,01,207.78

-22,47,41,579.57

4,05,06,344.00

65,76,542.0017,22,434.0030,46,279.5029,49,190.40

1,42,94,445.90

1,82,005.00

39,225.004,52,634.25

12,65,194.00

17,57,053.25

53,78,724.00

50,77,558.0037,20,347.98

87,97,905.98

14,28,515.177,37,822.80

21,66,337.97



OTHER EXPENDITURE

(I) SUBSCRIPTION

(ii) TRAINING & DEVELOPMENT OF STAFF

(iii) AGM & CONFERENCE

(iv) SECURITY

(v) BUSINESS PROMOTION & GIFTS

(vi) STAFF WELFARE

(vii) TRAVEL & TRANSPORT

(viii) COMMISSION ON DAILY DEPOSIT

(ix) CHARGES PAID TO OTHER BANKS

(X) AMORTIZATION ON INVESTMENTS

(XI) MISCELLANEOUS EXPENSES

LOSS FROM SALE OF NON BANKING ASSETS

PROVISIONS

(I) CONTINGENT PROVISION ON STANDARD ASSETS

(ii) PROVISION FOR BAD & DOUBTFUL DEBTS (NPA)

(iii) SPECIAL RESERVE U/S 36(1) (viii) OF INCOME TAX ACT

(iv) PROVISION FOR CURRENT INCOME TAX

(v) PROVISION FOR DEFERRED TAX FOR CURRENT YEAR

BALANCE OF PROFIT

GRAND TOTAL

EXPENDITURECURRENT YEAR


31-03-2012

Contd...

(9)

(10)

(11)

(12)

TOTAL

TOTAL

TOTAL

Contd...

92,809.0028,820.00

1,44,644.009,96,927.752,29,714.504,08,500.007,75,987.39

13,21,003.002,22,841.27

-3,46,061.46

45,67,308.37

68,532.00

1,37,176.00-

8,20,754.0072,61,151.00

28,491.00

82,47,572.00

2,01,85,147.96

23,42,95,805.53

19

(Amount in Rs.)

1,13,092.5068,836.00

1,22,672.0015,45,906.50

1,99,268.007,87,096.00

12,63,884.6814,49,194.00

3,97,612.573,60,360.008,89,296.56

71,97,218.81

-

--

11,09,504.0092,67,366.00

2,24,376.00

1,06,01,246.00

2,17,12,164.27

33,73,35,024.75

EXPLANATORY NOTE

CONTINGENT PROV. AGAINST DEPRECIATION IN INVESTMENTS 2,54,016.00



INTEREST AND DISCOUNT

(I) INTEREST ON LOANS & ADVANCES

(ii) INTEREST ON INVESTMENTS

COMMISSION, EXCHANGE & BROKERAGE

OTHER RECEIPTS

(I) LOAN PROCESSING CHARGES

(ii) INCIDENTAL CHARGES

(iii) LOCKER RENT

(iv) DIVIDEND FROM MUTUAL FUNDS

(v) PROFIT ON REDEMPTION/ SALE OF INVESTMENTS

(vi) BAD DEBTS RECOVERED

(vii)MISCELLANEOUS INCOME

GRAND TOTAL

INCOMECURRENT YEAR


31-03-2012

(1)

(2)

(3)

TOTAL

TOTAL

Contd...

13,86,52,385.80

7,86,04,629.89

21,72,57,015.69

11,61,658.82

48,32,392.00

18,59,190.74

7,98,600.00

4,56,383.37

55,02,445.06

-

24,28,119.85

1,58,77,131.02

23,42,95,805.53

20

(Amount in Rs.)

22,66,97,796.75

8,63,60,257.06

31,30,58,053.81

9,25,950.00

79,47,102.00

22,65,292.25

12,37,100.00

-

82,99,370.74

10,03,400.00

25,98,755.95

2,33,51,020.94

33,73,35,024.75


Sd/-(G.P. Gupta)PARTNER

Sd/-(Sudhakar Agarwal)

DIRECTOR

Sd/-(Sarvesh Singhal)

DIRECTOR

Sd/- (Suveer Kumar Gupta)

MD & CEO

Sd/-(Shiv Puran Gulati)VICE CHAIRMAN

Sd/-(Yashvir Kumar Gupta)

CHAIRMAN

EXPLANATORY NOTE

TRANSFER FROM IFR 2,54,016.00–


21

SCHEDULES TO BALANCE SHEET AS ON 31ST MARCH, 2013

SCHEDULE 1 : CAPITAL

AUTHORIZED CAPITAL

50,00,000 Shares of Rs. 100/= each

SUBSCRIBED CAPITAL

22,36,644 Shares or Rs. 100/= each

AMOUNT CALLED UP

On 22,36,644 Shares at Rs.100/= each

Of (iii) above, held by

(a) Individuals & others

(b) Co-operative institutions

(c) Government

STATUTORY RESERVE(A) Statutory Reserve(B) Add : Statutory Reserve from Erstwhile Malwa Bank, Indore.

INVESTMENT FLUCTUATION RESERVE(A) INVESTMENT FLUCTUATION RESERVE(B) Add : IFR from Erstwhile Malwa Bank, Indore.

OTHER FUNDS AND RESERVES(a) SHARE TRANSFER FUND(b) PROVISION ON STANDARD ASSETS(c) SPECIAL RESERVE U/S 36(1)(viii) OF I.T. ACT(d) CONTINGENCY RESERVE(e) Add : Prov. on STD Assets from Malwa Bank, Indore

GRAND TOTAL

(i)

(ii)

(iii)

50,00,00,000.00

11,63,36,200.00

11,63,36,200.00

11,63,36,200.00

-

-

SCHEDULE 2 : RESERVE FUNDS & OTHER RESERVES

CURRENT YEAR31-03-2013

PREVIOUS YEAR31-03-2012

(i)

(ii)

(iii)

TOTAL

TOTAL

TOTAL

(Amount in Rs.)

Contd...

50,00,00,000.00

22,36,64,400.00

22,36,64,400.00

22,36,64,400.00

-

-

2,71,16,947.0012,76,215.00

2,83,93,162.00

27,45,984.007,89,640.00

35,35,624.00

50,00,000.0072,38,988.0030,20,894.0044,92,880.00

9,903.00

1,97,62,665.00

5,16,91,451.00

2,20,31,778.00-

2,20,31,778.00

2,45,984.00-

2,45,984.00

50,00,000.0047,38,988.0019,11,390.0024,74,365.00

-

1,41,24,743.00

3,64,02,505.00


22


SCHEDULE 3 : DEPOSIT & OTHER ACCOUNTS

FIXED DEPOSITS

(a) INDIVIDUALS & OTHERS

(b) CENTRAL CO-OPERATIVE BANKS

(c) OTHER SOCIETIES

SAVING BANK DEPOSIT



(c) OTHER SOCIETIES

CURRENT DEPOSITS



(c) OTHER SOCIETIES

MONEY AT CALL AND SHORT NOTICE

GRAND TOTAL

1,87,64,03,616.38

-

-

1,87,64,03,616.38

51,67,90,707.18

-

-

51,67,90,707.18

6,46,15,710.70

-

–

6,46,15,710.70

-

2,45,78,10,034.26



(i)

(ii)

(iii)

(iv)TOTAL

TOTAL

TOTAL

TOTAL

(Amount in Rs.)

Contd...

Contd...

SCHEDULE 4 : OTHER LIABILITIES & PROVISIONS

(i) BILLS PAYABLE (DDs/POs ISSUED BUT NOT YET

PRESENTED FOR PAYMENT)

(ii) UNCLAIMED DIVIDENDS

(iii) SUNDRIES

(iv) PROVISION FOR BONUS

(v) PROVISION FOR INCOME TAX

(vi) DEFERRED TAX LIABILITY

(vii) TAX DEDUCTED AT SOURCE

(viii) PROVISION FOR AUDIT FEES

(ix) PROVISION FOR BAD & DOUBTFUL DEBTS (NPA)

(x) PAID-UP CAPITAL (COLLECTION ACCOUNT) OF

ERSTWHILE BHOJ NAGRIK SAHAKARI BANK LTD.

DHAR, M.P.

(xi) PAID-UP CAPITAL (COLLECTION ACCOUNT) OF

ERSTWHILE MALWA COMMERCIAL CO-OP BANK

LTD., INDORE, M.P.

(xiI) CONTINGENT PROV. AGAINST DE. IN INVESTMENTS (IDR)

2,29,83,880.81

1,78,686.00

3,52,380.00

7,53,200.00

72,61,151.00

2,93,089.00

11,991.00

80,899.00

4,28,102.20

19,33,900.00

–

2,54,016.00

3,45,31,295.01

2,42,95,02,025.30

-

-

2,42,95,02,025.30

60,21,60,727.91

-

-

60,21,60,727.91

15,29,55,622.60

-

–

15,29,55,622.60

-

3,18,46,18,375.81

67,83,143.70

2,01,193.00

31,80,768.00

10,34,265.00

92,67,366.00

5,17,465.00

67,511.00

1,21,349.00

52,77,621.20

17,90,000.00

69,81,200.00

2,54,016.00

3,54,75,897.90


23


SCHEDULE 5 : PROFIT & LOSS

PROFIT AS PER LAST BALANCE SHEET

Loss of Malwa bank for the year till date of merger

LESS :APPROPRIATIONS OF PROFIT FOR

LAST YEAR

STATUTORY RESERVE

CO-OPERATIVE EDUCATION FUND

SHARE TRANSFER FUND

CONTINGENCY RESERVE

INVESTMENT FLUCTUATION RESERVE

BAD & DOUBTFUL DEBTS RESERVE

CONTINGENT PROVISION ON STD. ASSETS

DIVIDEND @ 12%

ADD: SURPLUS FROM MALWA COMMERCIAL

CO-OP BANK, INDORE (NET OF NON-

STATUTORY RESERVES, AS FAR AS REQUIRED)

ACCUMULATED LOSSES OF MALWA BANK

TILL DATE OF MERGER (31.08.2012)

LESS : PROVISION FOR STAFF BENEFIT

LESS : CO-OP. EDUCATION & STAFF TRAINING FUND

ADD : PROFIT OF THE YEAR B/F FROM P&L A/C

GRAND TOTAL

2,63,91,283.67

2,63,91,283.67

27,07,820.00

1,08,313.00

-

10,83,128.00

-

-

-

68,52,060.00

(1,07,51,321.00)

-

-

-

-

2,01,85,147.96

3,58,25,110.63



(i)

(ii)

(iii)

(iv)

(Amount in Rs.)

Contd...

Contd...

TOTAL

TOTAL

TOTAL

3,58,25,110.63

(20,019.99)

3,58,05,090.64

50,46,287.00

2,01,851.00

-

20,18,515.00

25,00,000.00

45,00,000.00

25,00,000.00

1,02,35,473.00

(2,70,02,126.00)

(84,462.81)

5,000.00

82,421.00

2,958.19

2,17,12,164.27

3,05,18,087.10


24


SCHEDULE 6 : BALANCE WITH OTHER BANKS

CURRENT DEPOSITS

(a) DISTRICT CO-OPERATIVE BANK LTD.

(b) SBI & SUBSIDIARY BANKS

(c) OTHER PUBLIC SECTOR BANKS

(d) OTHER SCHEDULED BANKS

SAVING BANK DEPOSITS

FIXED DEPOSITS

(a) DISTRICT CO-OPERATIVE BANK LTD.

(b) SBI & SUBSIDIARY BANKS

(c) OTHER PUBLIC SECTOR BANKS & SCHEDULED BANKS

GRAND TOTAL



(i)

(ii)

(iii)

TOTAL

TOTAL

(Amount in Rs.)

Contd...

Contd...

SCHEDULE 7 : INVESTMENTS

(i) IN CENTRAL & STATE GOVERNMENT SECURITIES

MARKET VALUE

FACE VALUE

(ii) OTHER TRUSTEE SECURITIES

(iii) SHARES IN CO-OPERATIVE INSTITUTIONS

(iv) OTHER INVESTMENTS

GRAND TOTAL

1,61,60,120.14

2,85,11,906.04

7,16,33,103.17

3,43,64,505.15

15,06,69,634.50

2,14,24,073.00

-

21,71,80,742.00

23,86,04,815.00

38,92,74,449.50

39,14,335.74

93,55,898.85

5,82,13,973.79

4,65,81,065.54

11,80,65,273.92

-

2,73,58,140.00

24,96,914.00

26,22,11,611.00

29,20,66,665.00

41,01,31,938.92

72,66,15,632.00

72,69,57,500.00

72,50,00,000.00

-

2,000.00

4,94,72,000.00

77,60,89,632.00

68,50,82,412.00

65,78,38,200.00

68,45,00,000.00

-

1,000.00

49,72,000.00

69,00,55,412.00


25


SCHEDULE 8 : ADVANCESSHORT TERM LOAN, CASH CREDITOVERDRAFT AND BILLS DISCOUNTEDOF WHICH SECURED AGAINST(a) GOVT. & OTHER APPROVED SECURITIES(b) OTHER TANGIBLE SECURITIESOF THE ADVANCES, AMT. DUE FROM INDIVIDUALSOF THE ADVANCES, AMOUNT OVERDUECONSIDERED BAD & DOUBTFUL OF RECOVERY(FULLY PROVIDED FOR)

MEDIUM TERM LOANS OF WHICH SECURED AGAINST(a) GOVT. & OTHER APPROVED SECURITIES(b) OTHER TANGIBLE SECURITIESOF THE ADVANCES, AMT. DUE FROM INDIVIDUALSOF THE ADVANCES, AMOUNT OVERDUECONSIDERED BAD & DOUBTFUL OF RECOVERY(FULLY PROVIDED FOR)

LONG TERM LOANSOF WHICH SECURED AGAINST (a) GOVT. & OTHER APPROVED SECURITIES(b) OTHER TANGIBLE SECURITIESOF THE ADVANCES, AMT. DUE FROM INDIVIDUALSOF THE ADVANCES, AMOUNT OVERDUECONSIDERED BAD & DOUBTFUL OF RECOVERY(FULLY PROVIDED FOR)

GRAND TOTAL

INTEREST RECEIVABLE ON INVESTMENTS (ACCRUED)

(a) GOVERNMENT SECURITIES(b) BANKS FDRs(c) OTHER INVESTMENTS TOTAL

INTEREST RECEIVABLE ON NPA (OVERDUE)

TOTAL

SCHEDULE 9 : INTEREST RECEIVABLE



(i)

(ii)

(iii)

(i)

(ii)

(Amount in Rs.)

Contd...

Contd...

66,16,78,596.47

-66,16,78,596.4766,16,78,596.47

93,110.00-

24,94,83,663.29

-24,94,83,663.2924,94,83,663.29

11,38,880.46-

54,07,11,759.57

-54,07,11,759.5754,07,11,759.57

27,54,876.00-

1,45,18,74,019.33

1,07,67,82,776.89

-1,07,67,82,776.891,07,67,82,776.89

25,23,189.44-

32,26,81,279.84

-32,26,81,279.8432,26,81,279.84

32,07,865.5211,24,121,00

80,13,40,533.83

-80,13,40,533.8380,13,40,533.83

56,62,400.0095,531.00

2,20,08,04,590.56

91,81,796.006,96,54,466.44

1,02,588.00

7,89,38,850.44

4,21,095.00

7,93,59,945.44

77,52,399.005,86,30,811.64

36,392.00

6,64,19,602.64

3,73,088.00

6,67,92,690.64


26


SCHEDULE 10 : FIXED ASSETS

AS ON 01-04-2012

ADDITIONS DURING THE YEAR

LESS : SALE/ ADJUSTMENTS

LESS : DEPRECIATION FOR CURRENT YEAR

WRITTEN DOWN VALUE AS ON 31.03.2013

SCHEDULE 11 : OTHER ASSETS

(i) REFUNDABLE SECURITIES

(ii) STOCK OF PRINTED STATIONARY

(iii) MISCELLANEOUS RECEIVABLES

(iv) TAX DEDUCTED AT SOURCE

(v) INCOME TAX REFUNDABLE

(vi) ADVANCE INCOME TAX PAID

TOTAL



(Amount in Rs.)


Sd/-(G.P. Gupta)PARTNER

Sd/-(Sudhakar Agarwal)

DIRECTOR

Sd/-(Sarvesh Singhal)

DIRECTOR

Sd/-(Suveer Kumar Gupta)

MD & CEO

Sd/-(Shiv Puran Gulati)VICE CHAIRMAN

Sd/-(Yashvir Kumar Gupta)

CHAIRMAN

Contd...

96,07,199.00

55,30,698.78

(4,71,355.00)

(28,66,259.73)

1,18,00,283.05

1,18,00,283.05

2,88,89,112.54

(31,166.00)

(50,77,558.00)

3,55,80,671.59

8,40,320.00

4,42,220.96

75,64,614.00

4,47,321.00

32,20,875.00

90,00,000.00

2,15,15,350.96

10,12,545.00

7,75,082.39

41,71,717.33

73,158.00

54,06,014.00

95,00,000.00

2,09,38,516.72


27

(A) BACKGROUND AND OPERATIONS:

1. Shivalik Mercantile Co-operative Bank Ltd. was registered in 1997 under Uttar Pradesh Co-operative Societies Act 1965 and started operations in September, 1998. After achieving a deposit base of Rs. 100 crores on 31.03.2010, the Bank became a Tier II bank and expanded its area of operation to whole of the state of Uttar Pradesh. Subsequently Bhoj Nagrik Sahakari Bank Maryadit, Dhar, Madhya Pradesh was merged into Shivalik Bank with effect from 1st November, 2010. Consequent upon this inter-state merger, Shivalik Mercantile Co-operative Bank Ltd. was deregistered under Uttar Pradesh Co-operative Societies Act, 1965 and was re-registered under the Multi State Co-operative Societies Act 2002, in September 2010, as a Multi-State Urban Co-operative Bank. The Bank again merged erstwhile Malwa Commercial Co-operative Bank Ltd., Indore with effect from 1st September, 2012. The Bank also continues to open new branches and presently has fifteen branches, ten in District Saharanpur, one each in Meerut, Ghaziabad & Noida, U.P., and one each in Indore & Dhar, M.P. The Bank provides complete retail and corporate banking services.

2. Merger of Malwa Commercial Co-operative Bank Ltd. with our bank:Malwa Commercial Co-operative Bank Ltd., Indore, M.P. (Target Bank) merged with Shivalik Mercantile Co-operative Bank Ltd. (Acquirer Bank) with effect from 1st September, 2012. As per the scheme of merger, the Share Capital of the Target Bank is being treated as Collection Account in the books of the Acquirer Bank and will remain so for a period of 1 year from the date of merger. During this period any share-holder of the Target bank desiring to withdraw his/her shares shall be paid back the amount at par. After the expiry of 1 year's period, the amount remaining unpaid shall be forfeited.

3. Merger of Bhoj Nagrik Sahakari Bank with our bank:a. Bhoj Nagrik Sahakari Bank Maryadit, Dhar, M.P. (Target Bank) merged with Shivalik

Mercantile Co-operative Bank Ltd. (Acquirer Bank) with effect from 1st November, 2010. As per the scheme of merger, the Share Capital of the Target Bank is being treated as Collection Account in the books of the Acquirer Bank and will remain so for a period of 10 years from the date of merger. During this period any share-holder of the Target

st(Schedule annexed to and forming part of the Balance Sheet as on 31 March, 2013 and st

Profit & Loss Account for the year ended 31 March, 2013)

SIGNIFICANT ACCOUNTING POLICIES, DISCLOSURES AND NOTES ON ACCOUNTS


28

bank desiring to withdraw his/her shares shall be paid back the amount at par. After the expiry of 10 years' period, the amount remaining unpaid shall be converted to the share capital of the equivalent amount of Shivalik Bank.

b. As a part of the prudential practice the non-performing loans of the Target Bank which remained unrealized till 31st March, 2012 were written off as bad debts in last F.Y. During the current year, Rs 10.03 Lacs has been recovered and credited in Profit & Loss Account. The efforts for recovery of these loans will continue and recoveries, if any, shall be considered as income for the year in which they are made.

(B) SIGNIFICANT ACCOUNTING POLICIES:- 1. Accounting Convention

The financial statements have been prepared in accordance with the historical cost convention and on going concern concept and in accordance with the generally accepted accounting principles and the statutory provisions prescribed in Banking Regulation Act 1949, the Multi State Co-operative Societies Act 2002, circulars and guidelines issued by the Reserve Bank of India from time to time, and the Accounting Standards issued by the Institute of Chartered Accountants of India and practices prevailing within the banking industry in the country, except as otherwise stated.

2. Use of estimates

The preparation of the financial statements, in conformity with generally accepted accounting principles, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses and disclosure of contingent liabilities at the date of the financial statements. Actual results could differ from those estimates. Management believes that the estimates used in the preparation of the financial statements are prudent and reasonable. Any revisions to the accounting estimates are recognized prospectively

3. Foreign Exchange TransactionsThe bank has not done any foreign exchange business, nor does it have any foreign exchange assets/ liabilities.

4. Investments 4.1. In accordance with the extant instructions issued by Reserve Bank of India for the

purpose of valuation of Investments, the Bank has classified its Investment portfolio


29

as at 31st March, 2013 into the following two categories: a) Held to Maturity: Investments under this category are carried at their book

value. Any premium on acquisition of a security is amortized over the balance period to maturity.

(b) Available for Sale: Investments in the category are valued at market rate and net depreciation in the category, if any, is provided for. Net appreciation, if any, is ignored.

4.2. The Investments have been disclosed in the Balance Sheet as under: (a) Central and State Government Securities (b) Shares of Co-operative Institutions (c) Other Trustee Securities (d) Other Investments

4.3. Market Value of Central and State Government Securities is determined in terms of Yield to Maturity method indicated by Fixed Income Money Market Dealers Association (FIMMDA).

4.4. The Amortization of premium on investments in Held to Maturity category is calculated on days basis to maturity.

4.5. Nil provision is required to be made for Depreciation on Investment under Available for Sale category as on 31st March, 2013 (previous year Rs. 2,54,016.00).

4.6. Investment Fluctuation Reserve is being created as per the extant instructions of RBI.

5. Loans and Advances 5.1. (a) The classification of advances into Standard, Sub-standard, Doubtful & Loss

assets as well as provision on non-performing advances has been arrived at in accordance with the extant instructions issued by the Reserve Bank of India with regard to Income Recognition and Assets Classification (IRAC) from time to time and as applicable for preparation of this Balance Sheet.

(b) In addition to this, a general provision on standard assets is also made as per the

extant instructions issued by Reserve Bank of India i.e. @0.40% of the outstanding amount on a portfolio basis except in the case of direct advances to agricultural and SME sector which has been @0.25%. The bank does not have any advance under Commercial Real Estate sector, which would have attracted provisioning @1%.

5.2. The overdue interest in respect of non-performing advances is provided separately


30

under “Overdue Interest Reserve” in accordance with the extant instructions issued by Reserve Bank of India.

6. Fixed Assets and Depreciation 6.1. Fixed Assets are stated and carried in the Balance Sheet at written down value,

purchase/ additions during the year less depreciation for the year thereon. Cost includes incidental expenses incurred on acquisition of assets.

6.2. Fixed Assets are depreciated at the rates mentioned below :(a) Furniture and Fixtures : 15%(W.D.V.)(b) Office Equipments: 15%(W.D.V.)(c) Office Vehicles: 15%(W.D.V.)(d) Safe, Locker Steel Almirah: 2.5%(W.D.V.)(e) Computer Hardware & Software: 33.33% (Straight Line)(f) Temporary Structures: 100%

6.3. Depreciation on assets purchased in the first 6 months of the year is provided at full rates. Depreciation at 50% rates is provided for fixed assets purchased in the last 6 months of the financial year. Depreciation on assets sold during the year is charged up to the date of sale.

6.4. Depreciation on assets, where cost of each item is under Rs.5,000/- is provided @ 100% in the year of purchase itself.

6.5. There has been no change in method and rates of providing depreciation as compared to the previous year.

7. Revenue Recognition (Accounting Standard AS-9)7.1. Items of income and expenditure are generally accounted for on accrual basis. 7.2. Income from non-performing assets is recognized to the extent realized, as per the

extant instructions issued by Reserve Bank of India. 7.3. Dividend received from shares of co-operative institutions is accounted on receipt

basis.7.4. Interest on overdue fixed deposits is provided on ad-hoc basis in accordance with the

extant instructions of RBI. Actual interest expense is accounted for at the time of renewal of FDR

7.5. There are no material prior period item's included in Profit and Loss account.7.6. Certain items of income such as Locker Rent, loan processing fee are recognized on

cash basis. The quantum of such income is not material. 8. Non-Performing Assets

8.1. Non-Performing assets of the bank have been identified and provision thereon has


31

been made as per the extant instructions of Reserve Bank of India.8.2. Any advance including Bills Discounted, which became Non Performing Assets at the

close of the year, interest accrued and credited to income account is reversed or provided for, if the same is not realized.

8.3. Interest accrued on NPA is not shown as income but shown as “Overdue Interest Reserve” in the Balance-sheet.

9. Employee Benefits (Accounting Standard AS-15)

9.1. The liability towards gratuity is assessed and calculated on actuarial valuation and paid every year to L.I.C. of India as Employees Group Gratuity Scheme.

9.2. Bank's Contribution towards provident fund is paid every month to Commissioner of Provident Fund in accordance with the provisions of Employees Provident Fund Scheme, 1952 and Employees Pension Fund Scheme, 1995.

9.3. Leave encashment is accounted on actual payment basis.9.4. The bank does not have any scheme of LTC for its employees, however a regular

taxable allowance in this regard is being paid as a part of salary. 10. Reserve Fund and Other Reserves

10.1. Dividend remaining unclaimed over 3 years are transferred to Statutory Reserve Fund a/c.

10.2. Nominal Membership and Entrance Fees are transferred to Statutory Reserve Fund every year.

11. Taxation

11.1. Income Tax expense comprises of Current Tax. Current Tax is provided on the Taxable Income using applicable Tax Rates and Tax Laws.

11.2.Deferred Tax Liability in accordance with AS-22 (Accounting for Taxes on Income) has been recognized, as per the details given below:

Due to Depreciation

For period up to 31st March 2012

For the year 2012-13

As on 31st March 2013

2,93,089

2,24,376

5,17,465

(C) DISCLOSURES AND NOTES ON ACCOUNTS:

1.Disclosure As Per the extant instructions of Reserve Bank of India:


32

1.5 Advances of Rs. 2,20,08.05 Lacs (Previous year Rs. 1,45,18.74 Lacs) shown in the

Balance Sheet include:

1.1

1.2

1.3

1.4

Sr. No. Particulars 31.03.2013 31.03.2012

Capital to Risk Asset Ratio (CRAR)

a. Movement of CRAR (Basic Points)

b. Risk Weighted Assets

Values of Investments are as under:

A. Government / Approved Securities (SLR)

a. HELD TO MATURITY

Face Value

Book Value

b. AVAILABLE FOR SALE

Face Value

Book Value

Market Value

B. Other Investments (Non SLR)

Shares of Co-operative Institution

Other (Book Value)

Other (Market Value)

Advances against Shares & Debenture

14.28%

0.76%

20375.02

5,625.00

5,640.16

1,625.00

1,625.99

1,653.59

0.02

494.72

497.61

NIL

13.52%

0.17%

13189.38

5,300.00

5,313.69

1,545.00

1,537.13

1,534.02

0.01

49.72

50.57

NIL

Amount in Rs./Lacs

ParticularsFUND BASED NON FUND BASED

31.03.13 31.03.12 31.03.13 31.03.12

i) Advances against Real Estate,

Construction Business, Housing

ii) Advance to Directors

iii) Advance to Relatives of Director

& Companies / firms in which

they are interested

iv) Advances to Chairman

6,017.31

Nil

Nil

Nil

3,777.44

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil


33

1.6

1.7

1.8

1.9

1.10

Sr. No. Particulars 31.03.2013 31.03.2012

Average Cost of Deposits

a. Gross NPAs

b. Net NPAs

Movement in NPA

Opening Balance

Add : Additions during the year

Less : Closed/ Recovered/ Written off

Closing Balance

a. Interest income as a percentage of working funds

b. Non-interest income as a percentage of working

funds

c. Operating profit as a percentage of working funds.

d. Return on Assets

e. Business (Deposits + Advances) per employee

f. Profit per employee (Before Tax)

g. Profit per employee (After Tax)

a. Provision on NPAs required to be made

b. Provision on NPAs actually made

C. Provisions on depreciation in investments

required to be made

d. Provisions on depreciation in investments

actually made

e. Provision on Standard Assets required to be made

f. Provision on Standard Assets actually made

8.13%

50.99

-

34.71

156.57

140.28

50.99

10.66%

0.53%

1.07%

1.03%

345.22

2.06

1.39

7.61

52.77

-

-

70.93

72.49

7.40%

34.71

30.43

181.54

46.74

193.57

34.71

9.30%

0.73%

1.22%

1.17%

403.06

2.83

2.08

4.28

4.28

2.54

2.54

47.39

47.39

2. Related Party Disclosure (Accounting Standard AS-18)A. List of the related parties and their relationship

Name of the party Relationshipa. Key Managerial Personnel 1. Shri Yashvir Kumar Gupta Chairman


34

b. Relatives of the Key Managerial Personnel 1. Shri Suveer Kumar Gupta Son of Shri Yashvir Kumar Gupta2. Smt. Swarn Lata Gupta Wife of Shri Yashvir Kumar Gupta3. M/s Yashvir Kumar Gupta HUF HUF of Shri Yashvir Kumar Gupta

B. Details of transactions with the related parties carried out on an arm's length basis.

S. No.

Salary paid

Rent paid

1.

2.

Nature of the transaction

Relatives of Key Managerial Personnel

Relatives of Key Managerial Personnel

31st March 2013

11,78,240

9,43,500

31st March 2012

10,86,440

9,30,000

3. Leases (Accounting Standard AS-19)The bank has cancelable operating lease and the disclosures under AS 19 on 'Leases' issued by ICAI are as follows:i) Lease rent payments of Rs. 65,76,542/- (Previous Year Rs. 41,22,324/-) have been

recognized in the statement of profit and loss for the year ended March, 2013.ii) The lease agreements entered into pertain to use of premises by the bank. The lease

agreements do not have any undue restrictive or onerous clauses other than those normally prevalent in similar agreements.

4. Intangible Assets (Accounting Standard AS-26)

Details of Computer Software included in Other Assets in accordance with AS-26 on Intangible Assets issued by the ICAI are as under:

Opening balance as on 01.04.2012

Additions during the year

Less : Amortization/ Depreciation

Closing balance as on 31.03.2013

0.89

31.20

6.02

26.07

5. Impairment of Assets (Accounting Standard AS-28)The process of ascertaining the value of impaired assets, if any, in accordance with Accounting Standard 28 is under progress at the bank and these shall be impaired & written off with the approval of the Board in current financial year.

(Amt. in Rs./ Lacs.)


35

6. Provisions, Contingent Liabilities & Contingent Assets (Accounting Standard AS-29)

(Amount in Rs./Lacs)

(Bank Guarantees are 100% secured against tangible securities.)

7. Segment reporting (Accounting Standard AS-17):There is only one segment namely “Banking”.

8. Details of Other Investments:8.1.Other Investments of the bank comprise the following items:

Bank Guarantees

1.

2.

3.

4.

5.

Particulars

Particulars

31/03/2013

Amount (Rs)

31/03/2012

Remarks

149.44 120.65

S. No.

HDFC Debt Cancer Fund

IDBI Liquid Growth Fund

Shares of District Co-operative

Bank Ltd., Saharanpur

Shares of Indore Premier Central

Co-operative Bank Ltd., Indore

8.30% Tax-free Bonds issued by

National Highways

Authority of India

50% of the dividend declared in

this Mutual Fund is utilized

torwards helping cancer patients.

5,00,000

4,65,00,000

1,000

1,000

24,72,000

8.2. All the investments under this head are within limits defined as per the extant instructions of RBI.

8.3. Investments under this head have been valued at the lower out of book value and market value.


36

As per our report of even date attachedFor G.P. Gupta & Co.Chartered Accountants

sd/-

(G.P. Guptra)Partner(M. No. 073778)(Firm's Regn. No. : 004998C)

For Shivalik Mercantile Co-operative Bank Ltd.

sd/-(Suveer Kumar Gupta)

MD & CEO

sd/-(Sarvesh Singhal)

Director

sd/-(Yashvir Kumar Gupta)

Chairman

sd/-(Sudhakar Agarwal)

Director

sd/-(Shiv Puran Gulati)

Vice-Chairman

9. Statutory Liability The Bank had a statutory liability, towards Education Fund of Rs. 2,01,851/- which had to be paid to The National Co-operative Union of India Ltd., New Delhi under The Multi-State Co-operative Societies Act, 2002 towards appropriation made for the same in the year. The payment was made on 26th Sep., 2012.

10. Previous year figures have been regrouped and recasted wherever considered necessary to make them comparable with those of current year.


37

Proposed Appropriation :

APPROPRIATION OF PROFITS FOR THE YEAR 2012-13

Accumulated Profit of previous years

Loss from Malwa Bank of Indore

Profit for the year 2012-13

Total profit available for appropriation

88,22,984.63

(17,061.80)

2,17,12,164.27

3,05,18,087.10

OpeningBalance*

RemarksProposed

AppropriationClosingBalance

Statutory Reserves

Education Fund

Contingency Reserve

Investment Fluctuation Reserve

Share Transfer Fund

BDDR (NPA)

Contingent Provision on

Proposed Dividend @ 12%

Total Appropriation Amount

Accumulated Profit C/F to

Standard Assets

next year

2,83,93,162.00

-

44,92,880.00

35,35,624.00

50,00,000.00

52,77,621.00

72,48,891.00

-

-

-

54,28,041.00

2,17,122.00

21,71,216.00

-

-

-

-

1,49,31,528.00

2,27,47,907.00

77,70,180.10

3,38,21,203.00

2,17,122.00

66,64,096.00

35,35,624.00

50,00,000.00

52,77,621.00

72,48,891.00

1,49,31,528.00

25% of current year's Profit(Mandatory as per Multi-StateCo-operative Societies Act, 2002



Last year's dividend amount wasRs. 1,02,35,473 @ 12%

Opening Balance of Reserves includes the balance transferred from Malwa Bank, Indore*

38

BUDGET OF THE BANK FOR F.Y. 2014-15

Expenditure

Interest on Deposits & Borrowing

Salary

Rent, Electricity, Telephone, Insurance

Repair, Maintenance, Depreciation

Publicity, Stationary

Audit, AGM, Consultancy

Miscellaneous Exp.

Income Tax & Provisions

Net Profit

TOTAL

Rs. in Lacs

AmountAmountIncome

Interest on Loans

Interest on Investments

Miscellaneous Income

TOTAL


4,400

1,600

350

6,350

3,850

750

400

150

70

95

155

280

600

6,350

TARGETS OF THE BANK FOR F.Y. 2014-15(Rs. in Crores)

Branches

Deposits

Loans & Advances

Share Capital

Membership

New Schemes

Net Profit (after Tax)

DescriptionTargets approved forcurrent year 2013-14

in last AGM

Proposed revision ofTargets for current

year 2013-14

Proposed Targetsfor the year 2014-15

As per Requirement

400

240

14

9000

As per Requirement

4

21

600

400

40

10000

As per Requirement

6

18

450

300

35

9000

Forex, Direct RTGS, Net Banking

4

Shivalik Mercantile Co-operative Bank Ltd. was registered as a Co-operative Society under Uttar Pradesh

Co-operative Societies Act, 1965 in 1997. It was granted the license to conduct banking business as a Primary

Urban Co-operative Bank in the district Saharanpur by Reserve Bank of India in September, 1997. The Bank

started operations on 5th September, 1998 and has registered constant growth since then. Presently the bank is

rated amongst the best Urban Co-operative Banks in the state.

Subsequent to achieving a deposit base of more than Rs. 100 crores on 31st March, 2010, the bank was

recognized as a Tier-II bank and was allowed to extend its area of operation to entire state of Uttar Pradesh.

The bank has constantly been endeavouring to expand and had taken over an Urban Co-operative Bank by

the name of Bhoj Nagrik Sahakari Bank Maryadit at Dhar, Madhya Pradesh. As a result of this merger, which was

effective on 1st November, 2010, the bank was de-registered from the state Government (UP Co-operative

Societies Act, 1965) and was re-registered under the Central Government (Multi-state Co-operative Societies

Act, 2002) under the overall control of the Central Registrar of Co-operative Societies, Ministry of Agriculture &

Co-operation, New Delhi. Shivalik Bank thus became the first Multi-state Urban Co-operative Bank of the state

of UP.

Continuing the saga of inter-state expansion, Shivalik Bank again took over a weak co-operative bank,

Malwa Commercial Co-operative Bank Ltd. in Indore, MP. The merger was made effective on 1st September,

2012. Thus Shivalik Bank got a second branch in the state of Madhya Pradesh.

The Bank is fully computerized under CBS environment and has fifteen branches at present, out of which ten

are located within District Saharanpur, one each at Meerut, Ghaziabad and Noida, and one each at Indore &

Dhar in Madhya Pradesh.

The Bank is managed by a Board, which is well diversified, reputed and experienced in their field. The Board

comprises persons from all walks of society viz. Industrialists, Agriculturists, Traders, Professionals, Chartered

Accountants, Retired Senior Bank Personnel etc. The phenomenal growth & excellent reputation of the bank is

much accredited to the personal reputation and fame enjoyed by its Chairman & the Board of Directors, apart

from the professional management style of the Bank.

The bank has its head-quarters at Saharanpur, which is located at the junction of UP, Uttrakhand, Haryana &

Himachal Pradesh. The population of Saharanpur is approximately 5 lakhs as per census 2001. The main

activities include trading, agriculture, handicrafts & small industries. Saharanpur is famous for its wood carving

work and wooden articles are exported all over the world from here. Some very reputed industries like I.T.C. and

Star Paper Mills Ltd. are also located here.

A few of our major achievements are as follows.

39

OUR PROFILE AND ACHIEVEMENTS



40

MANAGEMENT:

wThe Bank has maintained highest norms of account keeping and has been very prompt in finalizing its

annual accounts and getting it audited. The bank feels pride that the Balance-Sheet of the bank is ready on

1st of April every year after finalizing annual accounts.

wThe IT awareness is very high in our bank. This is also due to the fact that the Chairman and the CEO of the

Bank are engineers with work experience with M/s Hindustan Aeronautics Limited and M/s Tata

Consultancy Services respectively.

wThe bank tends to manage its business in a very professional and transparent manner. We are regularly

publishing our results/policies/interest rates/charges etc. on our website apart from displaying them in our

branches.

wAll the senior personnel of the bank are IT conversant and make extensive use of technological

communication modes such as email and video conferencing, which enables fast and cheap

communication. The bank is gradually moving towards the 'paperless office' concept.

TECHNOLOGY INITIATIVES & INNOVATION:

wWe have professionalized our management by having full computerization, and by employing well-qualified

staff. We have successfully implemented 'Core Banking System', thereby providing any branch banking to

all our customers. At one time our bank was the first fully computerized bank of District Saharanpur. Further

the installation of CBS and use of technology has also enabled the bank to provide Internet Banking to its

customers. Very soon, Mobile Banking is also going to be launched.

wThe Bank is successfully connected to the country-wide ATM network, 'Rupay' managed by NPCI. As a

result, the customer of Shivalik Bank can use their ATM cards not only at our own ATMs but also at the ATMs

of all other banks. Incidentally, all branches of the bank are (/going to be) equipped with ATMs and cash

deposit machines.

wThe bank is also participating directly in the RTGS/NEFT transactions as a sub-member of IDBI Bank Ltd.

wThe bank constantly looks forward to innovations in banking. Apart from participation in RTGS/NEFT

network, the bank has arrangements with leading private commercial banks for issue of 'at-par cheques' to

facilitate remittances for its customers and for speedy collection of outstation instruments of its customers.

wAn I.T. department has also been set up at the Bank and we are providing computer training to our staff

officers also to keep them abreast of all relevant innovations and advancements in technology.

OPERATIONS:

wWithin a short span of about 15 years, the total business of the bank has grown to approximately Rs. 650

crores with the deposits at Rs. 320 crores, the advances at Rs. 220 crores and investments at Rs. 110

crores.


41

wThe Owned Funds of the bank have grown from Rs. 15.50 lacs as on 5th September, 1998, the bank's

opening day, to a net worth of more than Rs. 30 crores as on 31th March, 2013. This shows the trust our

shareholders and the public have in the bank.

wThe Bank has been in profit from the very first year of its working and has shown constant growth. The bank

has continuously been paying a dividend of 12% to its members.

wThe share of Government or large institutions in the deposit base of the Bank is very little. The Bank relies on

the trust and confidence that individual investors have placed in it. As a result the customer base of the Bank

has well exceeded 40,000 in number.

REGULATORY COMPLIANCE:

wThe Bank has been strictly following the guidelines issued by RBI in all of its operations and the working of

the bank was highly appreciated by the officials of RBI during the course of RBI inspections, the latest being

in April, 2012. The Inspection reports received from RBI have been highly satisfactory and very appreciative

of bank's overall performance.

wThe Bank neither makes any investments in the shares/debentures nor does it give any advances against

the security of shares/debentures i.e. the exposure of the bank towards share/debentures market is Nil.

wThe Capital to Risk Assets Ratio of the bank, has constantly remained more than 12% and presently is

14.28% as on 31.03.2013.

wThe audit classification of the bank has continuously been "A" since inception.

wThe bank has successfully met the targets for maintenance of SLR through investments in Government and

Approved Securities as per RBI norms.

wThe Bank is regularly maintaining the required ratio of 40% of total financing to Priority Sector.

FINANCIAL INCLUSION:

wThe bank is pioneering in the Co-operative Sector towards efforts made for Financial Inclusion. We have

taken a great initiative by starting micro-finance to self-help groups. To run this efficiently we have entered

into partnership with an NGO, which provides livelihood development trainings to members of SHG apart

from training them in better money management. Almost all members of these groups are women belonging

to BPL category with many groups inhabited by women belonging to minority community.

wTill date the bank has linked 3000 SHGs comprising app. 35,000 individuals to its microfinance program. The

total amount disbursed by the bank to these SHGs is Rs. 6.50 crores as on date with almost nil NPA. These

figures are increasing at a rapid rate.

wThe bank has initiated a program to appoint BCs in rural areas to provide banking services to rural masses.


42

OUR CUSTOMER SERVICE INITIATIVES

The Bank has earned an excellent reputation for providing good customer service and

utilization of latest technological enhancements. The bank is providing some very innovative and

customer friendly services to its clients. Some of these are home banking, tele-banking, prompt issue

of remittance instruments, same day payment of local clearing instruments, promptness in outstation

collection, extended working hours etc.

A List of Customer Service initiatives taken by the bank is as follows:

Extended working hours: Our branches are open for customer dealing and locker operations

from 10 am to 5 pm on weekdays and from 10 am to 2 pm on Saturdays. Also, all the staff at a branch

does not take lunch/tea breaks together, so that the customer service does not stop even during

lunch hours.

Entertaining of late customers: If a customer walks in after 5 pm (close of business hours), we

entertain him by marking his transactions for the next business day. Such transactions are recorded

in the registers/systems duly provided to the branches and are executed after day open on next

business day.

May I Help You counters: All our branches are equipped with a 'May I Help You'/'Inquiry' counter,

which help the new customers to get their work done without any delay or confusion. The staff sitting

at these counters are well trained to handle inquiries, suggestions and help in filling up forms etc

Drop-box for Clearing Cheques: All our branches have installed a drop-box where a customer

can drop a cheque intended for clearing/transfer 24 hours a day. This box is securely locked and is

taken care of by the 24 hour guard. All cheques received during the night are taken up for

clearing/transfer the next day. This way the customers can save one day in clearing transactions.

Passbook Printer: All our branches are equipped with passbook printers, so that customers get

neat and legible passbooks updated instantly.

Currency counting machines: All our branches are equipped with adequate number of

currency-counting machines so that the work of the customer is attended to within the shortest time

possible.

SMS Alerts facility: We provide free SMS alerts to our customers for all transactions made in


43

their accounts. The information provided in the alerts includes transaction type, amount, date, closing

balance and transaction information.

Camera for customer's photo: All our branches have been provided with a portable camera so

that customers need not submit their passport size photographs. The branch officials directly click

their photographs and get it printed.

Photocopy machine: The branches are equipped with photocopy machines so that customers

do not have to go out to get copies of their documents done.

Availability of Stamp papers: For use in loan documentation, the bank directly purchases

stamp papers from the Government Treasury and gets the cost reimbursed from the customer. This

way the customers neither have to run around in search of stamp papers nor do they have to pay

commissions to private vendors to purchase stamp papers.

Personalized service: The bank keeps a track of its good customers and provides personalized

services to suit individual needs. We try to delight the customer by bonding with him strongly. The

bank wishes its good customers on their birthdays, anniversaries and special occasions.

Home/Telephone banking: We entertain our customers over telephone and take their

telephonic requests. Based on their telephonic requests their account statements/ drafts/ cheques/

other documents are delivered/ picked up from their homes/ offices. We also accept service requests

over e-mail. We also arrange to get the accounts opened/ documentations done at customers' homes

in case customer is unable to come to the bank.

Branch infrastructure: It may also be noted that we have provided excellent branch

infrastructure to enhance customer satisfaction. Our branches are equipped with air conditioning,

clean toilets, proper waiting lounges, availability of drinking water etc.

Technology: We have installed suitable CBS software to enhance customer satisfaction. The

software provides any counter operation, any branch banking etc. We are also connected with the

'Rupay' network for ATMs and to NFS for RTGS/NEFT as a sub-member through a leading bank.

Customer oriented banking procedures: We have strong customer oriented banking

procedures that ensure that the customer feels pleasure in dealing with us. For example whenever a

new customer approaches the bank we get his KYC formalities done once and later whenever he/she

approaches the bank again, we refer to his earlier ID and do not ask for documents again & again.


44

Security: We take utmost care to instil faith and trust in our customers by keeping all our

premises safe & secure. We have taken the services for Ex-Army-men Welfare Association to

provide strong and capable security guards, all our premises are CCTV enabled and are closely

monitored.

The Bank has achieved a high level of satisfaction for all its stakeholders viz. the Shareholders,

the Customers, the Staff and the Regulating Authorities.

BANK'S GROWTH AT A GLANCE

Total Branches Deposits

Net Worth Loans & Addvances

Documents

SHIVALIK MERCANTILE CO-OPERATIVE BANK LTD....Apr 16, 2017 · districts of Dhar, Indore, Ujjain, Dewas and West Nimar in Madhya Pradesh. ØIn 2012-13 we opened 7 more branches (one