THE A.P. MAHESH CO-OP. URBAN BANK LTD. Your Trust is our

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ESTD-1978
BUSINESS
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THE A.P. MAHESH CO-OP. URBAN BANK LTD.
(MULTI-STATE SCHEDULED BANK)
Head Office : 5-3-989, 3rd Floor, Stterza Estate, Nizamshahi Road, Hyderabad - 500 095 (A.P.) INDIA
Ph.; 040-24615296/99,23437100-7103 & 7105 Fax: 040-24616427 E-maii: [email protected]
Website: www,maheshbank,org
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Your Trust is our Reward
Purshotamdas Mandhana
Ramesh Kumar Bung
Smt. Pushpa Boob
Senior Vice-Chairrnan
Chairman
Vice-Chairperson
DIRECTORS^!
Anand Prakash Dalia
Bhagwandas Jaju
Chainsukh Kabra
Ghanshyamdas Kakani
Harikishan Bajaj
Nandlal Sarda
Ramnivas Sont
Ramprakash Bhandari
Smt. Ratnamala Saboo
Ashok Kumar Giiada
\ s ,i
»':
V
„,*"Devender Jhawar
,4,,
Narayanlal Baheti
CA, R.B. Kabra
CA. Ramgopal Sarda
CA. CS. R.S. Jaju
M.D, & vEO
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THE A.P. MAHESH CO-OP. URBAN BANK LTD.
H.O.: 5-3-989, 3rd Floor, Sherza Estate, N.S. Road, Osmangunj, Hyderabad - 500 095 (A.P.)
(Multi-State Scheduled Bank)
ESTD. 1978 — •
Regd.underThe A.P.State Co-op.Societies Act, 1964
Licenced by The Reserve Bank of India
Regd.underTheMulti-StateCo-op.SocietiesAct,1984
FOUNDATION DAY
SCHEDULED STATUS
BOARD OF DIRECTORS
Chairman
Regn.No. :T.A.894
Licence No.: ACD.AP 109P
Regn.No. :MSCS/CR/128/2001 -09-08-1978
-26-10-1996
on tents
Page No.
RAMESH KUMAR BUNG
Sr. Vice-Chairman
30.06.1977
19.06.1978
30.05.2001
Notice & Agenda ,. , , ,
2
Directors'Report
4
PURSHOTAMDAS MANDHANA
Vice-Chairperson
SMT.PUSHPABOOB
Auditors'Report
DIRECTORS
Balance Sheet
A N A N D P R A K A S H DALIA
:
8
,.
10
Profit and Loss Account
11
Schedules •
12
DEVENDERJHAWAR
Details of "Others" under Other Assets
16
GHANSHYAMDAS KAKANI
and Other Liabilities & Provisions
ASHOK KUMAR GILADA
BHAGWANDASJAJU
CHAINSUKHKABRA
HARIKISHANBAJAJ
NANDLALSARDA
NARAYANLALBAHETI
Details of Miscellaneous Income and Other Expenditure 16
Details of Reserves and Surplus M., ,-
17
Significant Accounting Policies & Notes on Accounts ?
18
Appropriation of Profit
24
RAMNIVASSONI
RAMPRAKASH BHANDARI
SMT. RATNAMALA SABOO
CA. R.B.KABRA
CA.RAMGOPALSARDA
-
Budget for 2008-09 and 2009-10 .
25
Progress at a Glance
26
Proposed Amendments to Bye-laws
27
UMESHCHANDASAWA
Interest Rates on Deposits and Loans & Advances
29
STATUTORY AUDITORS
Head of Departments at Head Office & Branches
30
Authorisation Letter for Credit of Dividend
31
Managing Director & CEO
CA. CS. R.S.JAJU
General Manager
M/S.VENUGOPAL&CHENOY
Chartered Accountants
FIRST MULTI-STATE SCHEDULED CO-OPERATIVE URBAN BANK OF www.reportjunction.com
SOUTH INDIA
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THE A.P. MAHESH CO-OP. URBAN BANK LTD.
(Multi-State Scheduled Bank)
ESTD.1978 — '
NOTICE
Notice is hereby given that the 32nd Annual General Meeting of the members of The A.P. Mahesh Co-operative
Urban Bank Limited will be held on Monday, the 15th September 2008 at 10.30 A.M. at KLN Prasad
Audito.ium, FAPCCI House, Red Hills, Hyderabad - 500 004 (A.P.) to transact the following business:
AGENDA
1.
To consider and adopt the Thirty Second Annual Report together with the Audited Statement of Accounts and Audit
Report for the year 2007-2008.
2.
To approve appropriation of net profit and to declare dividend for the year ended 31 st March, 2008.
3.
a) To ratify the excess expenditure incurred than budgeted, during the year 2007-2008.
b) To approve the revised Budget of Income & Expenditure for the year 2008-2009.
c) To approve the Annual Budget of Income & Expenditure for the year 2009-2010.
4.
To approve appointment of M/s. Venugopal & Chenoy, Chartered Accountants, as Statutory Auditors to hold office
from the conclusion of this Annual General Meeting until conclusion of the next Annual General Meeting and to
authorise the Board to fix their remuneration.
5.
To note the position of loans and advances to Directors, their relatives and Companies/Firms in which they are
interested, being NIL.
6.
To note the list of employees who are relatives of members of the Board or of the Chief Executive Officer (being one
employee as per 6.4 of Notes on Accounts).
7.
To approve writing-off Rs.10,63,926.20 being principal amount outstanding in 63 loan accounts.
8.
To grant Leave of Absence to the members other than those whose names appear in the Attendance Register of the
32nd Annual General Meeting.
9.
To approve Amendments to Bye-Laws for submission to the Central Registrar of Co-op. Societies.
10. Any other subject with the permission of the Chair.
BY ORDER OF THE BOARD OF DIRECTORS
Sd/-
Place: Hyderabad
Date : 31-07-2008
CA. CS. R.S, JAJU
MANAGING DIRECTOR & CEO
A LARGE BODY OF SHARE HOLDERS OF ABOUT 37, 500
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THE A.P. IVIAHESH CO-OP. URBAN BANK LTD.
(Multi-State Scheduled Bank)
ESTD. 1978 — •
1.
Enbloc Amendments to Bye-Laws has been approved by the Central Registrar of Co-op. Societies except Bye-Law
No. 30(ii),(viii) and 33(xxvi).
2.
As per Bye-Law No. 4A (iii) A member shall have minimum 50 shares to be eligible as member.
As per Bye-Law No.5, A member holding less than 50 shares shall subscribe for additional shares
to make his/her total shares at minimum of 50 shares (on or before 23.02.2009) as required under
Bye-Law No. 4A (iii) in order to exercise their membership rights, failing which the bank shall
refund the amount of shares held by the member.
3.-
Share holders are requested to note that as per:
Bye-Law No.7(b) - A membe,'shall make a minimum annual transactions of Rs.10007-in any account for
continuously two years or utilize the minimum level of services/products prescribed by the Board from time
to time to avoid disqualification.
Accordingly, the Board of Directors have fixed the minimum level of services to be utilized by the members as under:
All the members should maintain an account with the A.P Mahesh Co-op Urban Bank Limited and the
dividend declared for 2008-09 and thereafter shall be credited in their respective accounts.
4.
Members are requested to bring their Identity Card or Membership Number with them.
5.
If quorum is not formed within half an hour of the scheduled time, the meeting shall stand adjourned to 11.30 A.M.
on the same day and the agenda of the meeting shall be transacted at the said venue irrespective of the quorum.
6.
Dividend, after approval, will be paid within a period of 30 days.
7.
If members desire to have information in connection with the accounts, they are requested to address a letter to
the Managing Director to reach the Bank on or before 8th September 2008 so that the required information
can be made available.
: INFORMATION OF MEMBERS:
1.
Shareholders are requested to:
a) verify their name and address on the Annual Report sent to them. Changes, if any, may kindly be
intimated to the Shares Department for updating records.
b) avail nomination facility by submitting the nomination form, if not availed.
c) furnish their mobile phone numbers at the branch where their account/s are operated to avail SMS
banking facility as and when introduced by the bank.
d)send their suggestions to improve customer services.
e) check their account balances regularly.
f) advise branch about disposal of term deposits on maturity.
g) maintain joint accounts for operational convenience.
2.
Legal heirs of deceased shareholders are requested to submit the share certificate/s along with
claim form to the Shares Department for settlement of claim.
3.
Attention of the members is invited to Bye-Law No. 47(iii) by which dividends remaining undrawn for
3 years after having been declared shall be forfeited and credited to Reserve Fund Account.
4.
Members are requested to furnish their respective account numbers maintained with the
bank and ENSURE recording of standing instructions with the Shares Department for credit of
dividend into their account/s so as to comply with the requirement of availing minimum level
of services / products as per Bye-Laws.
NO FRILLS SAVINGS BANK ACCOUNT WITH A MINIMUM BALANCE OF RS. 107- ONLY
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THE A. P. MAHESH CO-OP. URBAN BANK
LTD.
(Multi-State Scheduled Bank)
ESTD.1978 ~ '
Dear Members,
The Board of Directors have pleasure in presenting the 32nd Annual Report together with Audited Balance Sheet and
Profit and Loss Account for the year ended March 3 1 , 2008.
OVERALL PERFORMANCE OF THE BANK:
We take pleasure to inform that the Bank made an excellent business and excelled in all fronts during the financial year
2007-08. Total business of the bank during the year was Rs.842 crores as compared to the business of Rs.690 crores during
the previous year 2006-07, a growth of Rs.1 52 crores. We are happy to inform that the bank is on the path of achieving by this
year end the corporate goal of business levels of Rs.1 000 crores set earlier for ourselves by 31 .03.201 0.
During the year 2007-08 the interest income increased to Rs.63.89 crores when compared to Rs. 50.44 crores a year
earlier, a growth of 26.67%.
There is appreciable low percentage of gross NPAs at 3.77%. It was 4.30% in the previous year. The net NPAs of
the bank continues to be Zero.
The profit of the bank before tax for the year 2007-08 accelerated to Rs. 14.57 crores as compared to Rs.6.51 crores
during previous year posting an increase of Rs. 8.06 crores i.e.,a growth of 123.81%. The bank has contributed
Rs. 4.64 crores to the exchequer by way of income tax. Accordingly, the Bank's profit after tax stood at
Rs.9.93 crores. The Board has recommended for a dividend @ 20% for the year as against 1 7% declared in
the previous year.
PERFORMANCE INDICATORS:
(Rs.in crores)
Increase
Particulars
Share Capital
Reserves
Working Capital
Deposits
Advances
Investments
Profit Before Tax
Profit AfterTax
CD Ratio (%)
CRAR(%)
31.03.2008
13.13
93.04
643.69
515.81
326.37
256.69
14.57
9.93
63.27
36.78
31.03.2007
12.44
86.97
569.34
432.95
257.05
250.24
6.51
5.15
59.37
35.15
Amount
%
0.69
5.55
6.07
6.98
74.35
13.07
82.86
19.14
69.32
26.97
6.45
2.58
8.06
123.81
4.78
92.82
3.90
6.57
RBI Stipulation : 9%
BOARD MEETINGS:
During the year 2007-08,13 Board meetings were held.The number of meetings attended by the Directors are as under:
SI.
No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
Name of the Directors
Sri Ramesh Kumar Bung
Sri Purshotamdas Mandhana
Smt.Pushpa Boob
Sri Anand Prakash Dalia
Sri Ashok Kumar Gilada
Sri Bhagwandas Jaju
Sri Chainsukh Kabra
Sri Devender Jhawar
Sri Ghanshyamdas Kakani
Sri Harikishan Bajaj
Sri Narayanlal Baheti
Sri Ramnivas Soni
Sri Ramprakash Bhandari
Smt.Ratnamala Saboo
Sri Nandlal Sarda*
CA.R.B. Kabra
CA. Ramgopal Sarda
No.of Meetings
attended
13
11
12
10
9
11
9
10
11
9
8
12
13
8
1
12
13
* Sri Nandlal Sarda has been co-opted as Director on the Board in place of Late Sri Suryaprakash Sarda.
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MANAGED BY EXPERIENCED BOARD OF DIRECTORS
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MEMBERSHIP AND SHARE CAPITAL :
The subscribed share capital ("A" Class) of the Bank stood at Rs. 13.13 crores.The Bank's CRAR is 36.78% as
against the minimum of 9% stipulated by the Reserve Bank of India.
The"B"Class share capital amount which was included in sharecapitalofthebanktillpreviousyear is nowdiscontinued pursuant
to amendment and approval of bye-laws and the same is now treated as"Nominal Membership Fee"and transferred to General
Reserve Fund. Theauthorized"B"class share capital of Rs.1.00 crore up till previousyear stands deleted and theauthorized"A"class
share capital has been increased from Rs.19.00 crores to Rs.20.00 crores divided into 1 crore shares of Rs.20/- each.
RESERVES AND SURPLUS:
The position of Reserves and Surplus is as under:
As on
Particulars
31.03.08
31.03.07
(Rs.in crores)
26.44
Statutory Reserves
30.01
5.59
Investment Fluctuation Reserve
5.59
Revenue Reserves
54.19
57.28
0.75
Balance of Profit & Loss Account
0.16
86.97
TOTAL:
93.04
WORKING CAPITAL:
The Working Capital is as under:
Particulars
Share Capital
Reserves and Surplus
Deposits
Borrowings
Other Liabilities
TOTAL:
As on
31.03.07
(Rs.in crores)
13.13
12.44
31.03.08
93.04
86.97
515.81
432.95
18.33
18.65
569.34
21.71
643.69
The deposit composition is as under :
Particulars
Current Deposits
Savings Bank Deposits
Fixed and OtherTerm Deposits
TOTAL :
31.03.08
56.86
86.27
372.68
11
17
72
100
515.81
ADVANCES :
The position of advances to Priority Sector and Weaker Sections is as under:
(Rs.in crores)
31.03.07
%
50.10
12
78.45
18
304.40
70
432.95
100
As on
Particulars
Priority Sector Advances to Net Bank Credit
Weaker Section Advances to :
(a) Priority Sector Advances
(b) Net Bank Credit
31.03.08
%
75.25
31.03.07
%
79.21
25.21
18.97
26.03
20.62
The break-up of the investment portfolio is as under :
As on
Particulars
31.03.08
Central Govt. Securities
State Development Loans
PSU Bonds
Deposits with Banks
Gross Investments
Less : Provision for Investment Depreciation
Net Investments
31.03.07
(Rs.in crores)
131.52
120.31
48.82
23.32
28.83
4.67
49.98
105.31
259.15
253.61
2.46
3.37
256.69
250.24
PROFESSIONAL AND DEDICATED TEAM OF ABOUT 45O STAFF
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ASSETS:
Reducing the existing level of NPAs as well as arresting new additions to NPAs has been given top priority.
The recovery mechanism has been geared up for identification of probable NPAs and to take corrective
action in time. The gross NPAs of the Bank stood at 3.77% as on 31.03.2008 as against 4.30% in the previous
year. Adequate provisions have been made for NPAs and the floating provision covers entire amount of Gross
NPAs, thus the Bank continues to be a "0%" Net NPA Bank.
Our IT initiatives have played a major role in transforming the bank into a highly responsive organization.The
Bank is pursuing an aggressive IT policy as a strategic initiative to meet the growing competition for business,
.achieve efficiency in internal operations and to meet customers' expectations.
Core Banking Solution (CBS) implementation is completed in all the 30 branches of the bank and all the
branches are extending Any Branch Banking facility online.
The Bank is planning to render SMS facility to customers to make them aware about new products and
services of the bank.
The bank strongly believes that customer service plays a prominent role in maintaining and improving its
efficiency and leadership in Co-operative banking industry.The bank took several initiatives during the year
to enhance awareness among the staff on the importance of good customer service.
Customer meets were conducted at all branches where bank's customers, staff and senior officials have
freely interacted on issues relating to customers' grievances and service.
Income Tax payments of customers can now be remitted online to Tax Department through our bank.
Customers can now purchase foreign currency travellers' cheques, demand drafts etc., through designated
branches under AD Category - II Licence.
T h e b a n k i s a l s o providing immediate funds transfer facility through Western Union under tie-up with
Reliance Money Express Limited and RTGS facility.
The bank continues to provide insurance solutions through Max Newyork Life Insurance.
The Bank has been awarded E-SECURITY AWARD at the function arranged by the Banking Frontiers Magazine,
Mumbai for Co-operative Banks.
FUND:
Apart from the normal banking operations, the Bank, as a responsible organization, rendered a helping hand
to the needy by initiating relief measures through donations. During the year 2007-08, the Bank made
donations aggregating to Rs.5.15 lacs.
Bank is regular in payment of premium to Deposit Insurance & Credit Guarantee Corporation, thereby
providing insurance coverage for all deposits upto Rs.1.00 lac.
The bank is constantly monitoring its inflows and outflows of assets and liabilities to ensure that no liquidity
crunch arise, by taking corrective action through regular review by the ALM Committee.
The en-bloc amendments to bye-laws, which were approved by the General Body at its previous meeting,
were forwarded to the Central Registrar for approval.The Central Registrar has accorded the approval for
all the amendments except Bye-Laws No. 30 (ii), 30 (viii) and 33 (xxvi).These are revised and are put up to
members for approval along with other proposed amendments.
PROMPT & PERSONALISED SERVICE
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Attention of members is drawn towards the "note" and "for information of Members" mentioned
after Agenda / Notice of the meeting, towards holding of minimum 50 shares by 23-02-09 and opening
of account with the bank for credit of dividend for the purpose of availment of minimum services.
HUMAN RESOURCES:
.'"
•
The bank is continuing to recognize the value of human resources by providing training to its employees on
an ongoing basis.The Bank management, with a view to encourage and motivate staff, effected promotions
among staff during the year.
The bank also plans to recruit professional and technical experts at various levels to further strengthen the
organization in the years to come.
Statutory Audit for the year 2007-08 has been conducted as required under the MSCS Act, 2002 by IWs. Venugopal
&Chenoy, Chartered Accountants. Further, it is recommended to continue them as Statutory Auditors as per
Agenda in the Notice for the General Body meeting.
The Audit& Inspection Department continues to monitor adherence to s y s t e m s and procedures and
compliance with statutory and regulatory requirements.The effective functioning of the department and
internal control systems of the bank are closely monitored by the Audit Committee, under the Chairmanship
of CA. R.B. Kabra, Professional Director and remedial measures are initiated, wherever required, on an
ongoing basis.
Besides the above, Executives and Sr. Officials visit branches at regular intervals to monitor functioning of
the branches.
Inspired by the performance of the Bank during the year 2007-08, the mission of the Bank has been modified at
higher level as under:
"To strive to reach the business turnover of Rs. 1200 crores, Profit of Rs.15.00 crores, Low Cost Deposit to
total deposit at 35%, Gross NPA to maintain below 5%, CD Ratio to reach to 70% by the year 2010"
The Board of Directors of the Bank wishes to place on record its deep gratitude to the Reserve Bank of India,
Central Registrar of Co-op. Societies, State Registrars of Co-op. Societies (Andhra Pradesh, Rajasthan and
Maharashtra) and other officials in the Ministry of Agricultures Co-operation, Govt. of India and Department
of Co-operation of Andhra Pradesh, Rajasthan and Maharashtra and other Statutory Authorities for their
continuous support, guidance and encouragement.
The Bank is also thankful to Statutory Auditors, M/s. Venugopal & Chenoy, Internal Auditors, Advocates,
Consultants, Arbitrator and Valuers of the Bank for their valuable services, guidance and co-operation.
The Board also places on record its deep appreciation for the services, support and co-operation extended
by the Executives, Officers and all the Staff members of the Bank and its sincere gratitude to all its valued
customers, investors, shareholders and well-wishers for their continued faith, patronage, goodwill
and wholehearted support.
FOR AND ON BEHALF OFTHE BOARD OF DIRECTORS
RAMESH KUMAR BUNG
CHAIRMAN
CUSTOMERS' SATISFACTION IS OUR PRIDE
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THE A.P. MAHESH CO-OP. URBAN BANK LTD.
(Multi-State Scheduled Bank)
ESTD. 1978— •
AUDITORS' REPORT
To The Members of
The A.P.Mahesh Co-operative Urban Bank Ltd.,
1.
We have audited the attached Balance Sheet of The A.P.Mahesh Co-Operative Urban Bank Limited
as at 31st March, 2008, the Profit and Loss Account and also the Cash Flow Statement of the Bank for the
year ended on that date annexed thereto.These financial statements are the responsibility of the Bank's
Management. Our responsibility is to express an opinion on these financial statements based on our
audit.
2.
We conducted our audit in accordance with the auditing standards generally accepted in India.These
standards require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by the management, as well as
evaluating the overall financial statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3.
The schedule giving the particulars referred to in sub-rule(3) of Rule 27 of the Multi-State Co-operative
Societies Rules, 2002, to the extent applicable is attached to this report.
4.
Further to our comments and observations in the schedule referred at paragraph 3 above, we report
that:
i) We have obtained all the information and explanations, which to the best of our knowledge and belief
were necessary for the purpose of our audit.
ii) In our opinion, the proper books of account, as specified in the Multi-State Co-operative Societies Act,
2002, and rules made thereunder and Byelaws of the Bank, have been kept by the Bank so far as it
appears from the examination of those books.
iii) The Balance Sheet and Profit and Loss Account dealt with by this report are in agreement with the books
of account maintained by the Bank.
iv) To the best of our information and according to the explanations given to us, there has been no material
impropriety or irregularity in the expenditure or in the realisation of money due to the Bank.
v) To the best of our information and according to the explanations given to us, the Bank adhered to the
guidelines issued by the Reserve Bank of India, as applicable to Multi-State Co-operative Bank.
vi) In our opinion and to the best of our information and according to the explanations given to us, the said
accounts read with Significant Accounting Policies and Notes forming part of accounts give all the
information as required by the Multi-State Co-operative Societies Act, 2002, and rules made there
under, in the manner so required and 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 THE AFFAIRS of the Bank as at 31st March, 2008;
(b) in the case of the Profit and Loss Account, of the PROFIT for the year ended on that date; and
(c) in the case of Cash Flow Statement, of the CASH FLOWS for the year ended on that date.
Place: HYDERABAD
Date: 31-07-2008
for VENUGOPAL & CHENOY,
Chartered Accountants
Sd/CA.D.V.JANKINATH
Partner
M.No.29505
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