notice - :: kokan mercantile co-operative bank ltd

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NOTICE(For Share Holders Only) 12th September, 2019

The 50th Annual General Meeting of KOKAN MERCANTILE CO-OPERATIVE BANK LTD., will be held on Saturday, the 28th September, 2019 at 11.00 a.m. sharp at Damodar Thakersey Mulji Hall, Dr. Ambedkar Marg, Parel, Mumbai 400 012 to transact the following business :1. ToreadandconfirmtheminutesoftheAnnualGeneralMeetingheldon28thJuly,2018.2. To consider and adopt : i. AnnualReportfortheyear2018-2019. ii. Profit&LossAccountfortheyearended31st March, 2019. iii. BalanceSheetason31st March, 2019.3. To consider and approveAppropriation of Profit for the financial year 2018-2019 as proposed by the Board of Directors.4. ToconsiderandadopttheReportofStatutoryAuditorandcompliancethereoffortheyear2018–2019.5. ToapproveBudgetfortheyear2019-2020,6. ToappointInternalandStatutoryAuditorsfortheyear2019-2020andtofixtheirremuneration.7. TotakenoteoftheloansandadvancesoutstandingfromtheDirectorsandtheirrelativesduringtheyear 2018-2019[videsection39(3)oftheMultiStateCo-operativeSocietiesAct,2002].8. ToconsiderandapproveamendmentproposedbytheBoardofDirectorstotheByeLawNo.1(iv), 2(x), 4(A) (ix), 10(iii), 34(A), 35(2), 45, 46, 49, 50(c), 51 and 64 of the Bank.9. Any other matter with the permission of the Chair.

By order and on behalf of the Board of Directors

SADAnAnD K. nAyAKChiefExecutiveOfficer

N.B. :1. QUORUM : If there is no quorum by the appointed time, the meeting shall stand adjourned and the adjourned meeting shallbeheldhalfanhourlateratthesamevenueforwhichquorumisnotnecessary.

2. REQUEST TO THE MEMBERS : i) AnymemberdesiringtoseekinformationpertainingtotheaccountsisrequestedtowritetotheBank atleastsixdayspriortothedateoftheAnnualGeneralMeeting.

ii) Members,whohavenotcollectedtheirShareCertificate/suptillnow,arerequestedtocollectthe same,attheirearliest,fromtheRegisteredOffice/OutstationBranches

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iii) Members those who are not availing loan facility or having any Bank account attracts the provisionofdisqualificationundersection29(b)ofMultiStateCo-operativeSocietiesAct, 2002 read with Bye Law no. 13(d) of the Bank. The Board of Directors therefore requests all memberstoopentheiraccountwiththeBankandintimateaccountdetailstoCentralOfficeShare Department,HarbourCrest,MazagaonT.T.,Mumbai400010ornearestBranchrequestingthesaid Department/Branch to deposit their dividend in their respective Bank account.

iv) Members are requested to attend the Bank’s General Body Meetings at least once in three yearstoavoidattractionofprovisionofdisqualificationundersection29(c)ofMultiState Co-operativeSocietiesAct,2002readwithByeLawNo.13(c)oftheBank.

v) MembersthosewhohavenotyetobtainedtheirMembershipIdentityCardsarerequestedto submitTwolatestPassportSizePhotographstoShareOfficeratBank’sCentralOfficeShare DepartmentinordertoissuetheMembersIdentityCardtothem.

vi) ReserveBankofIndiahasinstructedallBankstocomplywiththeKYCofallaccountholdersas well as members which is mandatory and therefore the members those who are having accounts andnotcompliedwiththeKYCarerequestedtosubmitcopyoftheirPhotoIdentity,Proofof ResidenceandTwo latestPassportSizePhotographs immediately inorder toavoidany inconvenience or prohibition for operating the account in future. Account holders are also required tonotethatiftheaccountsremainingnon-operativeformorethan10years,balanceofsuchaccounts will be transferred and deposited in The Depositors Education & Awareness Fund 2014 with Reserve Bank of India as per guidelines issued by the Reserve Bank of India.

(vii)MembersmayalsoforwardtheirKYCdetailsforupdationonemailid-membershipkyc@ kokanbank.in

viii) Members/DepositAccountholdersarerequestedtonotifytheirMobileNumbersande-mail address with their respective Membership / Deposit Accounts in order to avail the SMS Alert Facility,AccountsStatements,Notices,CorrespondenceandcopyofAnnualReportbye-mail.

ix) AWARDTO/FELICITATIONOFMERITORIOUSCHILDRENOFTHEMEMBERS:

The Bank has formulated a policy to felicitate children of its members in the order of merits. Members are therefore requested to provide to the Bank, information about achievements of their children /ward inSSC/HSC examinations held for the academic year 2018-2019, iftheirchildren/wardhavesecuredaggregate85%oraboveinSSCand80%orabovein HSC: a) Under the scheme, parent member who is registered on 31st March of the preceding year shall be eligible to apply. b) If both the parents are members, only one parent member will be eligible to apply.

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STATUTORy AUDITOR

M/s.YardiPrabhu&AssociatesLLPChartered Accountants

INTERNAL&CONCURRENTAUDITORS

1. M/s.Fakih&Co.,CharteredAccountants

2. M/s.Vindu&Associates, Chartered Accountants

3. M/s.Bhagawathi&Bhat,CharteredAccountants

LIST OF OUR BAnKERS

1. ReserveBankofIndia

2. Mumbai District Central Co-op. Bank Ltd.

3. BankofIndia

4. AxisBank

5. Maharashtra State Co-op Bank Ltd.

6. ICICI Bank Ltd.

7. IDBI Ltd.

8. UnionBankofIndia

9. Kotak Mahindra Bank Ltd.

10. Dena Bank

11. State Bank of India

12. Raigad District Central Co-op. Bank Ltd.

13. BankofMaharashtra

14. HDFCBankLtd.

15. Ratnagiri District Central Co-op. Bank Ltd.

16. Bank of Baroda

17. Goa State Co-op. Bank Ltd. Panjim

18. YesBankLtd.

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ANNEXTURE - A(AsrequiredbytheCommissionerforCo-operationvideCircularNo.UBD/D.4/AR/Inform/92dated30.05.92)

NAMEOFTHEBANK KOKANMERCANTILECO-OP.BANKLTD.

REGD.OFFICEADDRESS HarbourCrest,MazagaonT.T.Mumbai400010

DATEOFREGISTRATION MSCS/CR/91/99dt.29.06.99 DATE&NO.OFRBILICENCE UBD.MH.646PU/S22ofB.R.Act1949

JURISDICTION GreaterMumbai,Thane,Raigad,Ratnagiri and Sindhudurg Districts, Miraj, Pune, Kolhapur in Maharashtra State, Panjim in Goa, Hyderabad in Andhra Pradesh, Bangalore, Belgaum in Karnataka, Surat in Gujarat.

ITEMS (as on 31st March 2019)(AmountinLakhs)

No. of Branches including H.O. 26

Membership Regular 51,333 Nominal 8,509

Paid-up share capital 1,621.25

TotalReservesandFunds 10,739.64

Savings 25,422.37 Deposits Current 6,214.73 Fixed 27,509.73

Secured 40,354.41 Un-secured 247.90 Advances Total%of Priority Sector 61.66% Total%of Weaker Section 24.79%

Borrowings D.C.C. — M.S.C. — Others 0.07

Investment 14,517.78

Overdues% 3.33%

AuditClassification "A"

TotalStaff Sub-staff 27 Otherstaff 239

Working Capital 74,765.55

CRAR Ratio 18.04%

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DIRECTORS’ REPORTDear Members,The Board of Directors hereby presents this 50th Annual Report along with the Audited Balance Sheet as at 31stMarch,2019andtheProfit&LossAccountfortheyearendedMarch31,2019.

ECONOMICOUTLOOK:Theyear2018-19sawmorestableinflationandstabilityincrudeprice.ThisencouragedtheRBItoreducetheReporatetwiceduringtheyear.TheGDPgrowthwasaround7%belowtheexpectedlevelat7.5%.TheaftereffectofdemonetizationandGSThassubsidedanditisexpected7.5%GDPgrowthduring2019-20.ThoughmostofthebanksarestillundertheclutchesofgrowingNPAsthecomingyearisexpectedtobemoreeffectiveincontrollingandreducingNPAs.

GOLDEn JUBILEE yEAR :Theyear2019-20willbecelebratedasGOLDENJUBILEEyearofthebank.Thebankisenteringthethresholdofcompletionof50yearsofyomenservicetothecustomers.Thebankestablishedin1969ascreditsocietytocatertotheneedsofKokanipeopleinMumbaiandKokanregionbythevisionariesofthecommunityhassincegrownasmulti-statebankhavingbranchesinMaharashtraandGoastates.ThebankhascomewithnewdepositschemeslikeKOKANBANKGOLDENJUBILEESCHEME,LAKHPATIDEPOSITSCHEME,STUDENTSEDUCATIONDEPOSITSCHEMEetc.withattractiverateofinterest.Duringthe year the bank will conduct area wise get together and meetings of stake holders to mobilise the members and well wishers.

PERFORMANCEOVERVIEW:TheoverallperformanceoftheBankduringtheyearhadbeenprogressiveandsatisfactoryascomparedtothebankingindustryinthecountry.ThefinancialresultismainlyevidentintheprimebarometerofincreaseinDeposits,Advances,WorkingCapital,Reserve,GrossIncome,NetProfit&CRARoftheBank.ThesustainedeffortsofoneandallhaveenabledtheBanktoincreaseitsShareCapitalatRs. 1,621.25lakhsandReservestood at Rs. 10,739.64 lakhs. The Banks own fund stood at Rs. 12,360.87 lakhs and Deposit of the Bank stood at Rs. 59,146.83lakhsandAdvancesatRs. 40,602.31lakhsason31stMarch,2019.Bank’sWorkingCapital stood at Rs. 74,765.55 lakhs whereas Gross Income of the year stood at Rs. 7,164.33lakhs.Bank’sNetProfitfortheyear2018-19wasRs. 730.43 lakhs, which is all time high in the history of the Bank, after providingallstatutoryprovisionsandpaymentofincometax.The performance high lights of the year 2018-19areasunder:(Rs.Inlacs)

31.3.2018 31.3.2019 Growth PercentShareCapital 1,479.82 1,621.25 9.56%Reserves 10,595.57 10,739.64 1.26%OwnedFunds 12,075.39 12,360.87 2.28%Deposits 54,306.62 59,146.83 8.91%Loans&Advances 36,716.50 40,602.31 10.58%Investments 15,345.27 14,517.78 -5.39%WorkingCapital 70,008.28 74,765.55 6.79%Gross Income 7,606.69 7,164.33 -11.83%TotalExpenditure 6,910.90 6,433.90 -14.01%NetProfit 695.79 730.43 4.97%CapitaltoRiskAssetsRatio 18.33% 18.04%

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nET PROFIT :BankhasearnedhighestNetProfitduringtheyearamountingtoRs. 730.43 lakhs.Thetotalnetprofitof Rs. 730.46 availableforappropriationinthecurrentyearincludingbroughtforwardprofitofRs.3,160.63afterprovidingstatutoryprovisionsrequiredasperReserveBankofIndianormsasagainstprofitofRs.696.01lakhsoflastyear.BankhasprovidedRs.294.95lakhsforpaymentofincometaxduringtheyear.

DIVIDEND:TheBoardofDirectorsrecommendsdividend@10%perannumthisyear,onproratabasissubjecttoapprovalofReserveBankofIndia.TheBoardofDirectorsarepleasedtoinformthattheReserveBankofIndiahasgivenpermissionforpaymentofdividendfortheyear2017-2018anddividendwarrantsofthesamehasbeendispatchedtothemembersorcreditedtotheirrespectiveaccountsaspertheirstandinginstructions.

APPROPRIATIOn :TheBoardofDirectorsrecommendthefollowingappropriationoutofthenetprofitavailablefordistribution:

APPROPRIATIONOFPROFIT(2018-19) Amount (Rs.)B/FProfit 3,160.63+CurrentYear’sNetProfit 7,30,42,641.22 7,30,45,801.85LessStatutoryReserve 25% 1,82,61,450.00 –"–ContingencyFund 10% 73,04,580.00–"–EducationFund 1% 7,30,458.00 –"–DividendPayabletoMembers 10% 1,50,05,938.85–"–BuildingFund 50,00,000.00–"–Ex-gratiatoEmployees 9.00% 91,88,706.00–"–StaffWelfareFund 10,00,000.00–"–MembersWelfareFund 10,00,000.00–"–GoldenJubileeFund 70,00,000.00–"–GoldenJubileeEx-GratiatoStaff 8.33% 85,04,658.00 7,29,95,790.85Balance carried forward 50,011.00Total 7,30,45,801.85

MEMBERSHIP :Membership of the Bank stood at 51,333ason31stMarch,2019asagainst50,527ason31stMarch,2018.Thenumberofnominalmembersason31stMarch,2019was 8,509(asagainst9,536ason31.3.2018)whichis16.57%ofthetotalmembersasagainst20%permissiblebyReserveBankofIndia.

SHARECAPITAL:Paid up Share Capital of the Bank as at the year-end stood at Rs. 1,621.25lakhs,ascomparedtoRs.1,479.82lakhsasatthepreviousyearend,givingariseof9.56%% in the equity during the year.

RESERVESANDOTHERFUNDS:TheReservesandOtherFundsoftheBankstoodatRs. 10,739.64 lakhson31.3.2019asagainstRs.10,595.57lakhs of last year.

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ThefollowingtableshowsthefiguresoftheReserves&OtherFundsundervariousheadsason31.3.2019ascomparedtothatason31.3.2018:

(Rs.InLakhs) PARTICULARS 2017-2018 2018-2019 RISE(Rs.)ReserveFund(Statutory) 1,434.32 1,611.83 12.38%BuildingFund 1,299.42 1,484.42 14.24%DividendEqualizationFund 69.59 69.59 ---Bad and Doubtful Debts 2,421.75 2,172.65 -10.29%ContingentprovisionsforStandardAssets 201.11 201.11 ---StaffWelfareFund 9.03 7.01 -22.37%Members’WelfareFund 31.29 39.49 26.21%DevelopmentReserveFund 19.75 19.75 ---CharitableFund 4.25 4.25 ---ContingencyFund 264.64 334.24 26.30%ReserveforInvestmentFluct.Fund 363.15 363.15 ---ReserveforDepreciationonInvestment 380.46 320.72 -15.70%RevaluationReserve 3,669.39 3,501.67 -4.57%GeneralReserve 380.80 552.78 45.16%

SpecialReserve 46.62 56.98 22.22% Total 10,595.57 10,739.64 1.26%

WORKINGCAPITAL:

The Working Capital stood at Rs. 74,765.55 lakhsasagainstRs.70,008.28lakhsofthelastyear.

ThefollowingabridgedBalanceSheetreflectsthecompositionofworkingcapitalasattheyearend:

(Rs.inLakhs)

2017-2018 Liabilities 2018-2019 2017-2018 Assets 2018-2019

12,075.39 OwnFunds 12,360.87 24,477.49 Liquid Assets 25,371.42

54,306.62 Deposits 59,146.83 36,716.50 Advances 40,602.31

698.80 Borrowings 0.07 Interestreceivableon 1,216.55 Loans&Investments 1,037.66

FixedAssests 2,231.68 OtherLiabilities 2,527.32 5,271.42 Machines, Generator 5,191.72

695.79 Profit&LossA/c 730.46 2,326.32 OtherAssets 2,562.44

70,008.28 74,765.55 70,008.28 74,765.55

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DEPOSITS :

YourBank’stotaldepositsreachedtoRs. 59,146.83lakhsason31stMarch,2019ascomparedtoRs.54,306.62lakhsatlastyearendshowingagrowthof8.91%.Bank’sCASADepositstoodto53.52% of the total deposit ason31stMarch,2019comparedto53.14%ofthelastyear.

CompositionofdepositsoftheBankisgivenhereunder:(Rs.InLakhs)

31stMarch,2018 % 31st March, 2019 %

TermDeposits 25,449.37 46.86 27,491.23 46.48Current Deposits 4,904.20 9.03 6,214.73 10.51SavingDeposits 23,953.05 44.11 25,440.87 43.01

TOTAL 54,306.62 100.00 59,146.83 100.00

LOANS&ADVANCES:TheadvancesoftheBankason31stMarch,2019stoodatRs. 40,602.30lakhsasagainstRs.36,716.50lakhsofthelastyear.BankhadmadeadvancesofRs.19,062.30lakhsto11171membersduringthefinancialyear.BankcouldreachtothedesiredCDRatioduringtheyearduetoeffortsatalllevel.

The CD ratio was 68.64%. The number of borrowers stood at 11387 at the end of the year.

ADVANCESTOPRIORITYSECTOR&WEAKERSECTOR:YourBankisfollowingthepolicyprescribedbytheReserveBankofIndiatograntloansandadvancestoprioritysectorandweakersectionandkeeppacewiththegrowthinothertypesofadvances.Ason31.3.2019 the BankhasadvancedRs. 25,033.85 lakhs to the priority sector and Rs. 1,692.52 lakhs to the weaker section. Percentageofprioritysectoradvancestothetotaladvancesis61.66% andWeakerSectionAdvancesstoodto 24.79% as on 31.3.2019.

PURPOSEWISEANALYSISOFADVANCES:

TheBank’slendingforvariouspurposesisindicatedinthefollowingtable.

ANALYSISOFADVANCES (ason31.3.2019)

(Rs.inLakhs)

no. Purpose of Loan Amount % no. of Borrowers %

1. Accomodation(Housing) 6040.41 14.88 2575 22.61

2. Small Scale Industries 1035.16 2.55 22 0.19

3. TradeandCommerce 6208.70 15.29 528 4.64

4. Transport Operators 934.88 2.30 400 3.51

5. SelfEmployed(Professionals) 354.26 0.87 75 0.66

6. Education 731.96 1.80 363 3.19

7. Other Purpose 25296.93 62.31 7424 65.20

Total 40602.30 100.00 11387 100.00

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ADVANCESTODIRECTORSANDTHEIRRELATIVES:WearepleasedtoinformthatnoadvancesweregrantedorareoutstandingonanyDirectorortheirRelativesason31st March, 2019.

nOn PERFORMInG ASSETS :TheBank'sGrossNPAason31stMarch,2019stoodat6.05%asagainst6.71%ofthelastfinancialyearwhereas the Net NPA stood at 0.74%asagainstlastyear's0.12%.

INVESTMENTS:TheReserveBankofIndiavideitsCircularNo.UBD.(PCB).MC.No.12/16.20.000/2010-11dated1stJuly,2010directedtheCo-operativeBankstocompulsorilyinvestinGovernmentandapprovedsecuritiestotheextentof25%ofitsNDTL.BankhascompliedwiththedirectiveofReserveBankofIndiaandinvestedinSLRSecuritiesinGOIandotherGovernmentapprovedsecurities.BankismaintainingitsDematAccountwithHDFCBankLtd. and SGL Account with ICICI Bank Ltd. All the transactions of sale and purchase are routed through SGL andDematAccount.ScheduleannexedtoBalanceSheetgivesadetailedpositionofinvestmentinvarioussecurities.Further,theBankhasstartedTradinginGovernmentSecuritiesduringtheyearandearnedprofitof Rs. 20.43 lacs.

AUDIT&INSPECTION:M/sYardiPrabhu&AssociatesLLP,CharteredAccountantconductedthestatutoryauditoftheBankfortheyearended31stMarch,2019andhavegiven"A"classAuditCertificationfortheyear2018-2019.InordertohavebettercheckonthedaytodayfunctioningoftheBank,thedifferentCharteredAccountantswereappointedas InternalandConcurrentauditors foreveryDistrict i.e.M/sVindu&Associates,CharteredAccountantscarriedoutInternal-cum-ConcurrentAuditofCentralOfficeBranch,KausaBranchandallsixRatnagiriDistrictBrancheswhereasM/sFakih&Co.,CharteredAccountant,MumbaicarriedoutConcurrentAuditofremainingBranches of Mumbai and Thane District as well as Internal-cum-Concurrent Audit for Raigad District Branches andwhereasM/sBhagawathi&BhatCharteredAccountant,wasappointedasInternal-cum-ConcurrentAuditorforPanjim(Goa)Branch.

CAPITALTORISKASSETSRATIO(CRAR):ReserveBankofIndiahasmadeitmandatorytomaintainCapitalAdequacynormseventoCo-operativeBanks.WearepleasedtoinformyouthatyourBankisadequatelymaintainingtheCRAR(CapitaltoRiskAssetsRatio)which as on 31st March, 2019 stood at 18.04%asagainstrequiredrateof9.00%asperReserveBankofIndia.

PERMISSIONTOOPENNRE(RUPEEDEPOSIT)ACCOUNTS:WearepleasedtoinformyouthatduringtheyearBankreceivedpermissionfromReserveBankofIndiatoopenandmaintainNREAccounts.TheBankreceivedverygoodresponsefromtheIndiansstayingabroadasithasbecomeconvenientforthemtotransferfundstotheirfamilyandrelatives,hasslefree.TheBankcouldmobilizedepositofRs. 10.76 crore in NRE accounts till date.

SHIFTINGTONEWCBS:Inordertoprovidehasslefreeandsmoothbankingservicestothecustomers,theBankhasmigratedtonewCoreBankingSoftwareFinCoreofM/sFinacusSoftwareSolutionsPvt.Ltd.on15thJuly,2019withmanyadded features being persistently demanded by the customers. Though in the initial stage of migration, we counteredmanyproblems.Thesystemhasnowstabilisedandwillhelpustoprovidemanydesiredproductsto our customers. We are thankful to all those customers who supported us during and after migration.

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MOBILE BAnKInG APP : TheReserveBankofIndia,afterconsideringthefinancialstabilityandotheraspects,allowedtheBanktolaunchitsownmobileapplicationandbecamepartofUPI.TheMobileApplicationisunderpreparationbytheI.T.Teamandwillbelaunchedveryshortly.WiththisfacilitytheCustomerswouldbeabletocarryoutbankingactivitiesaspertheirconvenienceandevenwhiletravelling.

ByE LAWS :TheBoardofDirectorshasproposedamendmentstotheByeLawsNo.1(iv),2(x),4(A)(ix),10(iii),34(A),35(2),45,46,49,50(c),51and64detailsofwhichareavailableinthisreport,whicharerequiredtobeamendedforbeingatparwithremainingotherrelevantlawsandcircularsrevisedbyReserveBankofIndiaandotherregulators from time to time.

HUMANRESOURCE&TRAININGTODIRECTORSANDSTAFF:BankisregularlydeputingstaffandofficerstovarioustrainingcentressuchasCollegeofAgriculturalBanking,ReserveBankofIndia,Pune,VaikunthMehtaNationalInstituteofCo-operativeManagementetc.fromtimetotime.Further,theBankisalsoarranginginhousetrainingprogramsforthestaffbyreputedtrainersandoutside faculties.TheBank has also given extensive training to all the staffmembers of theBank in newCBS beforeimplementation.

AWARDS :ItisamatterofgreatpridethattheBankreceivedfollowingthreeawardsbasedonthefinancialpositionasof2017-2018:1. 2ndBestCo-operativeBankfor2017-2018fordepositofRs.501croretoRs.2000crorecategoryfrom the Brihan Mumbai Sahakari Banks Association Ltd., Mumbai.2. 2ndBestCo-operativeBankfor2017-2018fordepositofRs.350croretoRs.600crorecategoryfrom theMaharashtraUrbanCo-operativeBanksFederationLtd.,Mumbai.3. BancoBlueRibbon2018AwardtotheBankinAllIndiaUrbanBanksCategorywithaDepositbetween 500 to 625 crore.

InDUSTRIAL RELATIOnS : TheBankexpresstheirgratitudetoloyalanddedicatedstaffmembersfortheirselflessservicesrenderedtotheCustomers,DepositorsandMembers.TheIndustrialrelationsduringtheyearremainedverycordial.

ACKNOWLEDGEMENTS:ItwouldbeappropriatetothankallthosewhocontributedtowardstheachievementsandprogressoftheBank.Attheoutset,theDirectorssincerelyacknowledgethecontinuedandever-growingsupportandco-operationoftheBank’sshare-holders,customers,constituentsandwellwishers.TheDirectorsare thankful toOfficersof theReserveBankof India,namely theExecutiveDirector,ChiefGeneralManagers,GeneralManagersandotherOfficersoftheDepartmentofCo-operativeBanksSupervision,Department ofCurrencyManagement, ForeignExchangeDepartment andDepartment ofPayment andSettlementSystemfortheirvaluableguidanceandco-operationatalltimes.The Board also notes with appreciation the continued co-operation from the Central Registrar of Multi State Co-operativeSocieties,NewDelhiandCommissionerforCo-operation,Pune,GovernmentofMaharashtra.TheBoardacknowledgesthevaluablesuggestionsgivenbyM/sYardiPrabhu&AssociatesLLP.,StatutoryAuditor, Mumbai, during the course of their statutory audit of the Bank and thank them for the same.

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TheDirectorsarealsograteful toM/sFakih&Co.,M/sVindu&AssociatesandM/sBhagawathi&Bhat,Chartered Accountants, who conducted the internal and concurrent audit at the Branches allotted to them. Their timelyguidanceandadviceshaveindeedhelpedtheBankinimprovingtheBank'sfunctioning.TheDirectorsarethankfultoallLegal/LabourAdvisorsandretainersoftheBankforrenderingguidanceandservicesinlegal and labour matters. TheBoardalsoacknowledgestimelyservicesrenderedbyallourpanelAdvocates,ArchitectsandValuers.TheBoardalsoacknowledgesselflessserviceprovidedbythemembersofSubCommitteesoftheBank.TheirvaluablesuggestionshelpedtheBoardinroutinebusinessoftheBanktogreatextent.Lastly,theDirectorsacknowledgeandappreciatededicatedservicesrenderedbytheChiefExecutiveOfficer,ChiefGeneralManager,DeputyGeneralManager,allExecutives,OfficersandStaffatalllevels.

ForandonbehalfoftheBoardofDirectors

Mumbai NAJEEB S. MULLA 31st August, 2019 Chairman

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BALANCESHEET(ason31stMarch2019)

Audited & found correct subject to report

YARDI PRABHU & ASSOCIATES LLP

Chartered Accountants

CAPITALANDLIABILITIES Schedule 2018-2019 2017-2018

Rs. Ps. Rs. Ps.

TOTAL Rs. 7,560,010,785.57 7,143,816,401.72

Mumbai 31st August, 2019

CAPITALACCOUNT “A” 162,124,850.00 147,982,320.00

RESERVEFUNDANDOTHERRESERVES “B” 1,073,963,938.39 1,059,557,346.85

DEPOSITSANDOTHERACCOUNTS “C” 5,914,683,409.88 5,430,662,179.57

BORROWInG 6,610.44 69,880,145.36

BILLSFORCOLLECTIONBEINGBILLS 162,640.00 101,187.44 RECEIVABLE(ASPERCONTRA)

OVERDUEINTERESTRESERVE(Contra) 137,692,000.00 142,886,721.58

OVERDUEINTERESTRESERVE(PA) 11,475,751.35 3,805,340.00

InTEREST PAyABLE 7,408,589.00 8,559,459.00

OTHERLIABILITIES “D” 166,437,971.63 206,482,922.26

DEFERRED TAx LIABILITy 13,009,223.03 4,297,377.33

PROFIT&LOSSACCOUNT “E” 73,045,801.85 69,601,402.33

NOTESONACCOUNTSFORMPARTOFACCOUNTS “M”

CONTINGENTLIABILITIES

31.03.18 31.03.19

Bank Guarantees 6,37,04,505.00 5,29,72,226.19

DEAF 42,78,046.00 51,16,151.00

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BALANCESHEET(ason31stMarch2019)

CASH “F” 221,419,620.90 194,052,951.78 In Hand with RBI, SBI, Maharashtra State Co-Op.BankandDistrictCentralCo-Op.Bank. BALANCEWITHOTHERBANKS “G” 863,945,234.75 719,168,581.06 MONEYATCALLANDSHORTNOTICE --- --- INVESTMENTS “H” 1451,777,812.00 1,534,527,217.00 ADVANCES “I” 4,060,230,714.41 3,671,650,387.94

INTERESTRECEIVABLE On Loans (PA) 4,48,66,910.91 On Investments 5,88,99,053.03 OnNPAs(Contra)13,76,92,000.00 241,457,963.94 264,541,852.69 BILLSRECEIVABLEBEINGBILLSFOR 162,640.00 101,187.44 COLLECTION(aspercontra) BRANCHADJUSTMENT (67,765.64) 32,315.56 FIXEDASSETS “J” Gross Block 789,422,486.19 Less : Accumulated Depriciation 270,249,640.71 519,172,845.48 527,141,841.33

OTHERASSETS “K” 201,911,719.73 232,600,066.92 DEFERRED TAx ASSET

PROPERTy AnD ASSETS Schedule 2018-2019 2017-2018

Rs. Ps. Rs. Ps.

TOTAL Rs. 7,560,010,785.57 7,143,816,401.72

CHAIRMANMr. najeeb Suleman Mulla

VICE CHAIRMANMr. Asif Gulam Mohammed Dadan

CHIEFExECUTIVEOFFICERMr. Sadanand nayak

DGM(OPERATION)Mr. Akbar yusuf Kondkari

DIRECTORSMr.BashirAminMurtuzaMr.AltafMohammedKaziMr. Asgar Mohammed DabirAdv.ShakeelHashamKaziMr. Abdul Samad Ibrahim Khan AdhikariMr. Mohammed naveed M. Ibrahim RoghayMr. Dilip Abdul Rahiman Mujawar

Mr. Sameer Mehmood MullaMr. Milind Hiraman KadlakDr. Shahid Ishaque BarmareMr. Abdur Rashid Abdul Latif ShaikhDr.ImtiyazIbrahimKondkariMrs.FaridaRazzakKaziMrs.TasneemMohammedSharifKazi

14

PROFITANDLOSSACCOUNT (fortheyearended31stMarch2019)

To Interest on Deposits, Borrowings etc. 286,495,436.55 303,362,122.45 To Salaries and Allowances, Bonus & P.F. 152,059,902.80 158,786,914.08 ToDirectors&LocalCommitteeMembers 1,523,596.00 1,785,404.52 Fees and Allowances To Rent, Insurance, Lighting & Taxes 18,597,553.66 20,187,772.38 ToLawCharges 925,813.00 931,100.49 ToPostage,Telegrams&TelephoneCharges 6,389,415.26 5,866,328.37 To Audit Fees (Internal & Statutory) 2,932,926.50 2,734,905.90 To Depreciation 13,234,589.99 10,467,522.33 To Amortisation of Revaluation Reserve Premises 16,771,936.88 16,771,936.88 To Stationery, Printing & Advertisement 6,468,124.82 5,497,086.26 To Loss on Sale of Assets 300,929.42 35,055.22 To Loss on Sale of Investment 760,000.00 --- To Premium on Investment amortised 1,366,835.00 1,801,500.00 To Election Expenses 392,140.50 715,000.00 ToVoluntaryRetirementScheme 1,897,812.00 1,843,260.00 ToOtherExpenses “L” 38,262,880.78 33,647,815.90 To Bad debts 24,910,634.07 38,447,938.00 To ProvisionsandContingencies To Provision for Leave Encashment 25,000,000.00 15,000,000.00 To Provision for Investment Depreciation 5,700,000.00 4,064,000.00 To Provision fo Housing Loan Development 1,036,000.00 727,300.00 ToNetProfitBeforeTax 111,431,691.69 136,844,116.14 Less:IncomeTax(P.Y.) --- 741,171.00 Less:IncomeTax(C.Y.) 29,495,370.00 26,783,161.00 ToBalanceofProfit 81,936,321.69 109,319,784.14 (Add) / Less : Deferred Tax 8,711,845.70 19,848,615.86 ToNetProfitafterTaxC/D 73,224,475.99 89,471,168.28

716,458,218.92 759,517,078.92 To Prior Period Expense 181,834.77 43,520.21 ToInvestmentFluctuationReserve --- 21,000,000.00 ToNetProfitCarriedToBalanceSheet 73,042,641.22 69,579,149.32 NOTESONACCOUNTSFORMPARTOFACCOUNTS “M”

ExPEnDITURE Schedule 2018-2019 2017-2018

Rs. Ps. Rs. Ps.

TOTAL Rs. 73,224,475.99 90,622,669.53

Mumbai 31st August, 2019

Audited & found correct subject to report

YARDI PRABHU & ASSOCIATES LLP

Chartered Accountants

15

PROFITANDLOSSACCOUNT (fortheyearended31stMarch2019)

By Interest on Advances 505,024,450.70 452,894,016.72

By Interest on Investment 140,851,489.20 168,007,144.87

ByCommission,Exchange&Brokerage 20,686,597.54 18,421,131.21

By Locker Rent 19,721.00 21,597.00

By Other Receipts 286,537.92 1,099,093.75

ByProfitonSaleofAssets 106,840.17 60,111.92

ByProfitonSaleofInvestment 2,043,930.00 39,111,500.00

By Provision for BDDR written back 24,910,634.07 38,447,938.00

ByExcessProvisionofBDDRWrittenback --- 40,000,000.00

By Recovery in Write Off A/c's 1,649,208.00 1,454,545.45

By Interest on I.T. Refund 1,249.00 ---

By Excess Provision of Income Tax Written back 20,877,561.32 ---

716,458,218.92 759,517,078.92

ByNetProfitB/D. 73,224,475.99 89,471,168.28

By Prior Period Adjustment --- 1,151,501.25

INCOME Schedule 2018-2019 2017-2018

Rs. Ps. Rs. Ps.

TOTAL Rs. 73,224,475.99 90,622,669.53

DIRECTORSCHAIRMANMr. najeeb Suleman Mulla

VICE CHAIRMANMr. Asif Gulam Mohammed Dadan

CHIEFExECUTIVEOFFICERMr. Sadanand nayak

DGM(OPERATION)Mr. Akbar yusuf Kondkari

Mr.BashirAminMurtuzaMr.AltafMohammedKaziMr. Asgar Mohammed DabirAdv.ShakeelHashamKaziMr. Abdul Samad Ibrahim Khan AdhikariMr. Mohammed naveed M. Ibrahim RoghayMr. Dilip Abdul Rahiman Mujawar

Mr. Sameer Mehmood MullaMr. Milind Hiraman KadlakDr. Shahid Ishaque BarmareMr. Abdur Rashid Abdul Latif ShaikhDr.ImtiyazIbrahimKondkariMrs.FaridaRazzakKaziMrs.TasneemMohammedSharifKazi

16

SCHEDULESTOBALANCESHEET

SCHEDULE-"A" CAPITAL 150,000,000.00 A)AuthorisedCapital 250,000,000.00 B)Subscribed&PaidupCapital: Nil(165592)fullypaidsharesofRs.10/-each held by 1,598,900.00 i)Individuals - 57,020.00 ii)Others - -

6484994(5853056)fullypaidsharesof Rs.25/-eachheldby 119,682,850.00 i)Individuals 134931905.00 26,643,550.00 ii) Others 27192945.00 162,124,850.00 147,982,320.00 162,124,850.00 SCHEDULE-"B" RESERVEFUND&OTHERRESERVES 143,431,935.26 StatutoryReserves 161,182,510.26 242,175,269.84 Bad&DoubtfulDebtsReserve 217,264,635.77 20,111,000.00 ContingentProvisionsforStandardAssets 20,111,000.00 129,942,000.00 BuildingFund 148,442,000.00 6,958,697.85 DividendEqualizationFund 6,958,697.85 902,909.22 StaffWelfareFund 700,254.51 1,975,000.00 DevelopmentReserve 1,975,000.00 425,000.00 CharitableFund 425,000.00 3,129,164.70 MembersWelfareFund 3,949,164.70 26,464,292.90 ContingencyFund 33,424,432.90 36,315,000.00 InvestmentFluctuationFund 36,315,000.00 38,045,725.00 InvestmentsDepreciationFund 32,072,443.92 366,939,275.24 RevaluationReserve 350,167,338.36 38,079,933.96 GeneralReserve 55,278,317.24 4,662,142.88 SpecialReserve 5,698,142.88 1,073,963,938.39 1,059,557,346.85 1,073,963,938.39

SCHEDULE-"C" DEPOSITANDOTHERACCOUNTS 2,393,620,232.60 SavingsBankDeposits 2,542,237,404.22 490,420,462.02 CurrentDeposits 621,472,680.11 2,544,452,285.90 TermDeposits 2,744,632,164.50 2,169,199.05 MaturedTermDeposits 6,341,161.05 5,914,683,409.88 5,430,662,179.57 5,914,683,409.88

AS AT 31ST PARTICULARS ASAT31ST

MARCH,2018 MARCH,2019

17




SCHEDULE-"D" OTHER LIABILITIES 10,174,622.44 Payorders/DDspayable 5,231,386.58 11,775,836.65 UnpaidDividends 8,505,967.45 32,257,365.52 Sundries 49,126,270.60 144,277,060.55 ProvisionforIncomeTax 98,538,162.00 2,961,852.10 Liabilityforexpenses - 5,036,185.00 OtherProvisions 5,036,185.00 166,437,971.63 206,482,922.26 166,437,971.63

SCHEDULE-"E" PROFITANDLOSSACCOUNT 47,581,183.46 ProfitasperlastBalanceSheet 69,601,402.33 -- Less:TransferredtoGeneralReserve& - SpecialReserve 47,581,183.46 69,601,402.33 Less: Appropriations 11,895,296.00 ReserveFund 17,400,350.00 11,775,836.65 ProposedDividend 13,328,431.45 4,758,118.00 ReserveforContingencyFund 6,960,140.00 475,811.00 ReserveforEducationFund 696,014.00 5,500,000.00 BuildingFund 18,500,000.00 1,500,000.00 Member'sWelfareFund 1,000,000.00 1,500,000.00 StaffWelfareFund 1,500,000.00 10,153,868.80 ExgratiatoEmployees 10,213,306.25

22,253.01 BalanceofProfitCarrieddown 3,160.63 69,579,149.32 Add:NetProfitasperProfitandLossA/c. 73,042,641.22 69,601,402.33 73,045,801.85 SCHEDULE-"F" CASH 116,197,670.61 In Hand 112,999,107.80 CurrentDeposits 65,284,001.20 WithReserveBankofIndia 102,819,238.98 7,061,602.22 State Bank of India 2,669,414.75 2,509,677.75 DistrictCentralCooperativeBank 2,931,859.37 108,420,513.10

18



Fixed Deposits 3,000,000.00 FDRwithState/Dist.CentralCo-Op.Banks - - 194,052,951.78 221,419,620.90 SCHEDULE-"G" BALANCEWITHOTHERBANKS

CurrentAccounts nationalised Bank 2,771,719.00 UnionBankofIndia 1,500,930.90 650,427.00 CanaraBank 939,393.00 3,744,254.91 BankofIndia 2,142,230.07 169,116.56 Dena Bank 277,177.66 67,621.85 BankofMaharashtra 61,153.85 2,656,246.45 BankOfBaroda 1,527,968.00 6,448,853.48

CommercialBanks 8,390.41 KotakMahindra 20,275,178.82 2,217,035.65 ICICIBank 33,007,072.47 47,250,165.12 IDBIBank 50,640,439.23 10,000.00 IDBI Bank - CSGL 10,000.00 1,224,246.46 HDFCBankLtd 661,374.46 1,038,180.15 ICICIBankChequeFacility - 9,704,381.48 YesBank 16,259,396.89 4,364,477.13 AxisBankLtd 6,019,673.13 126,873,135.00 UrbanCo-operativeBanks 461,059.89 CosmosBank - 858,615.00 TJSBSahakariBank 1,016,919.27 1,016,919.27 77,195,937.06 134,338,907.75 Fixed Deposits nationalised Bank 181,499,632.00 UnionBankofIndia 115,626,099.00 115,626,099.00

CommercialBanks 148,440,780.00 IDBIBank 125,165,558.00 20,808,000.00 UjjivanSmallFin.Bank 30,215,000.00 20,643,952.00 SuryodaySmallFin.Bank 30,540,132.00 - HSCB 10,000,000.00 - FincareSmallFinanceBank 20,000,000.00 - DCB Ltd 100,000,000.00 - JanaSmallFinanceBank 21,389,592.00 - AUSmallFinanceBank 30,426,575.00


19



33,586,244.00 KotakMahindraBank 36,143,371.00 403,880,228.00

UrbanCo-op.Banks 125,000,000.00 Saraswat Co-Op. Bank Ltd - 105,000,000.00 Punjab&MaharashtraCo-opBankLtd. 150,000,000.00 6,994,036.00 CosmosBank - - Bassein Catholic Co-op. Bank 60,100,000.00 210,100,000.00 641,972,644.00 729,606,327.00 719,168,581.06 863,945,234.75

SCHEDULE-"H"

INVESTMENTS

1,421,462,317.00 1)Central&StateGovt.Securities FaceValue-Rs.142,00,00,000/- (Rs.118,00,00,000/-) MarketValue-Rs.1,34,76,79,000/- 1,369,496,912.00 (Rs.1,16,70,58,000/-) - 2)OtherTrusteeSecurities - 2,000.00 3)SharesinCo-Op.InstitutionandCo.Op. 2,000.00 Housing Society. 113,062,900.00 4)PSUBonds/BondsofallIndiaFinancialInstitutions 82,278,900.00 1,451,777,812.00 1,534,527,217.00 1,451,777,812.00

SCHEDULE-"I"

ADVANCES i) ShortTermLoan,CashCredit,Overdraft and Bill Discounted of which secured against: 1,022,939,055.47 a)Government&Otherapprovedsecurities 995,661,554.53 OutofwhichoverdueRs.Nil(Rs.Nil). 62,473,141.00 b)OtherTangibleSecurities 73,766,752.00 OutofwhichoverdueRs.Nil(Rs.Nil). - c) PersonalSureties - OutofwhichoverdueRs.Nil(Rs.Nil). 511,566,740.64 d)GoldOrnaments 557,755,635.00 OutofwhichoverdueRs.2,71,85,523 (Rs.2,71,83,108). 1,627,183,941.53

ii) MediumTermLoanofwhichSecuredagainst: 1,576,392.00 a)Government&OtherapprovedSecurities 865,948.00 OutofwhichoverdueRs.Nil(Rs.Nil). 1,626,795,745.93 b)OtherTangibleSecurities 1,901,994,544.95 OutofwhichoverdueRs.10,48,45,689 (Rs.12,01,41,308)


20


MARCH,2018 MARCH,2019 122,845,273.34 c) PersonalSureties 117,688,692.18 OutofwhichoverdueRs.1097560(Rs.1630681) - d)GoldOrnaments OutofwhichoverdueRs.Nil(Rs.Nil). - 2,020,549,185.13 323,454,039.56 iii)LongTermLoansofwhichsecuredagst. TangibleSecurities 412,497,587.75 412,497,587.75 Outofwhichoverdue45,91,584.00 (163819886.00) (Ofthetotaladvances,Rs.40,602.31lacs (Rs.36716.50lacs)consideredBad&Doubtfulof recovery&fullyprovided forRs.2421.75lacs(previousyearRs.2485.58lacs) 3,671,650,387.94 4,060,230,714.41

SCHEDULE-"J" 1.PREMISES-GROSSBLOCK 557,952,616.77 OriginalCostasperLastYear 558,141,079.30 - Add:PremisesRevalued - - Less:PreviousRevaluationreversed - 188,462.53 Add:Additionsduringtheyear 23,787,349.28 - Less:Deduction/Soldduringtheyear - 558,141,079.30 SUB-TOTAL(A) 581,928,428.58

73,924,085.28 AccumulatedDeprn.UptoLastYear 94,218,986.85 3,522,964.69 Add:Depreciationduringtheyear 3,772,776.18 16,771,936.88 Add:Amortisationonrevaluedamount 16,771,936.88 - Add:Amortisationonrevaluedamountof - Sold Premises - 94,218,986.85 SUB-TOTAL(B) 114,763,699.91

463,922,092.45 TOTAL(A-B) 467,164,728.67 467,164,728.67

2. FURnITURE & FIxTURES 80,136,334.57 OriginalCostasperLastYear 81,595,388.47 1,459,053.90 Add:Additionsduringtheyear 7,302,766.72 - Less:Deduction/Soldduringtheyear 81,595,388.47 SUB-TOTAL(A) 88,898,155.19

60,591,742.74 AccumulatedDeprn.UptoLastYear 62,647,096.24 2,055,353.50 Add:Depreciationduringtheyear 2,327,840.77 - Less: Depreciation on sale during the year - 62,647,096.24 SUB-TOTAL(B) 64,974,937.01 18,948,292.23 TOTAL(A-B) 23,923,218.18


21



3.VEHICLES 7,296,197.00 OriginalCostasperLastYear 5,438,080.54 1,990,946.54 Add:Additionsduringtheyear 1,144,193.00 3,849,063.00 Less:Deduction/Soldduringtheyear 2,370,994.00 5,438,080.54 SUB-TOTAL(A) 4,211,279.54

5,835,925.88 AccumulatedDeprn.UptoLastYear 2,393,651.33 392,859.82 Add:Depreciationduringtheyear 495,369.77 3,835,134.37 Less:Depreciationonsaleduringtheyear 1,712,991.53 2,393,651.33 SUB-TOTAL(B) 1,176,029.57

3,044,429.21 TOTAL(A-B) 3,035,249.97

4. COMPUTERHARDWARE&SOFTWARE 76,249,473.84 OriginalCostasperLastYear 79,511,837.87 5,224,676.53 Add:Additionsduringtheyear 11,131,814.83 1,962,312.50 Less:Deduction/Soldduringtheyear 2,223,857.00 79,511,837.87 SUB-TOTAL(A) 88,419,795.70

71,909,319.58 AccumulatedDeprn.UptoLastYear 72,805,566.53 2,835,495.57 Add:Depreciationduringtheyear 4,686,220.59 1,939,248.62 Less:Depreciationonsaleduringtheyear 2,223,853.00 72,805,566.53 SUB-TOTAL(B) 75,267,934.12

6,706,271.34 TOTAL(A-B) 13,151,861.58

5.PLANT&MACHINERY 20,024,040.57 OriginalCostasperLastYear 21,408,732.06 1,561,426.10 Add:Additionsduringtheyear 3,801,126.54 176,734.61 Less:Deduction/Soldduringtheyear 71,932.88 21,408,732.06 SUB-TOTAL(A) 25,137,925.72

10,191,718.33 AccumulatedDeprn.UptoLastYear 11,654,950.06 1,597,015.81 Add:Depreciationduringtheyear 1,877,228.27 133,784.08 Less:Depreciationonsaleduringtheyear 45,141.60 11,654,950.06 SUB-TOTAL(B) 13,487,036.73

9,753,782.00 TOTAL(A-B) 11,650,888.99


22


6.CIVILWORK 578,571.45 OriginalCostasperLastYear 735,451.46 156,880.00 Add:Additionsduringtheyear 91,450.00 - Less:Deduction/Soldduringtheyear - 735,451.45 SUB-TOTAL(A) 826,901.46

441,016.74 AccumulatedDeprn.UptoLastYear 504,848.95 63,832.21 Add:Depreciationduringtheyear 75,154.42 - Less: Depreciation on sale during the year - 504,848.95 SUB-TOTAL(B) 580,003.37

230,602.50 TOTAL(A-B) 246,898.09

24,536,371.60 7.CAPITALWIP - 527,141,841.33 TOTAL FIxED ASSETS (1+2+3+4+5+6) 519,172,845.48 SCHEDULE"K" OTHER ASSETS 14,949,279.05 MiscellaneousAssets 13,292,220.69 16,677,446.54 TDSPaid 37,263,843.04 162,036,420.00 AdvanceTax 111,162,440.00 202,740.00 AdvancetowardsComputer 500,000.00 10,455,000.00 Deposit on Rental Premises 10,625,000.00 1,302,054.27 DepositswithBEST,BMCetc. 1,395,471.34 1,698,813.06 StockofPrinting&Stationery 2,002,444.66 18,998,714.00 NonBankingAsset 18,998,714.00 6,279,600.00 UnamortisedVRS 6,671,586.00 201,911,719.73 232,600,066.92 201,911,719.73



23

SCHEDULE-“L” OTHER ExPEnDITURE 1,493,655.48 BankCharges 1,240,713.83 649,402.00 ConveyanceCharges 818,972.00 1,769,998.22 MiscellaneousExpenses 2,400,937.78 638,208.82 MeetingExpenses(WaterChrg) 830,833.12 4,936,774.68 MaintenanceCharges 4,235,361.33 1,299,352.24 MaintenanceRupaySwitchCharges 1,644,301.56 255,811.00 Subscription 254,120.00 764,770.18 Expansion&Development 3,271,669.94 138,147.06 VehicleMaintenance 305,974.47 5,809,208.71 SecurityChargesA/c 5,881,680.80 798,500.00 MeetingAllowance 1,088,000.00 3,889,003.18 ComputerMaintenance 3,464,584.80 619,521.11 VehicleMaintenance 434,838.96 2,940,194.50 ProfessionalCharges 3,811,131.49 765,959.09 TrainingExpenses 456,578.46 365,575.00 Comm.A.c.Agent 1,459,927.85 25,440.00 R.T.O.Charges 38,000.00 700.00 Interest&PenaltyforGST - 2,161,982.33 ComputerSoftware 3,661,462.91 44,401.00 TravellingExpenses 296,004.23 44,069.00 TransportationCharges 78,705.00 1,678,211.05 StaffWelfareExpenses 895,076.00 1,283,944.80 CommissiononYESBankATM - 549,005.50 EstablishmentExpenses - 725,980.95 AnnualGeneralMeetingExp 1,694,006.25 38,262,880.78

33,647,815.90 38,262,880.78

AS AT 31ST PARTICULARS AS AT 31ST

MARCH2018 MARCH2019

SCHEDULESTOPROFITANDLOSSACCOUNT

24


MARCH,2018 MARCH,2019 122,845,273.34 TOINTERESTONBRANCHES& SECURITYDEPOSIT&BORROWNGS 9,64,60,313.00 SAVINGBANKDEPOSIT 9,01,81,317.00 2,36,79,585.00 FIxEDDEPOSIT 2,04,09,916.05 12,37,28,613.20 FIxEDCUMRECURRING 11,93,98,789.50 34,38,893.00 RECURRINGDEPOSIT 43,65,802.00 1,77,65,442.00 QUARTERLYINT.DEPOSIT 1,65,24,024.00 2,33,42,544.00 MONTHLYINT.DEPOSIT 2,19,38,225.00 50,99,799.00 MULTIPLEDEPOSIT 50,65,992.00 25,63,978.00 N.R.E.TERMDEPOSIT 21,84,465.00 3,31,023.00 N.R.E.SAVINGDEPOSIT 3,41,257.00 44,366.00 EASYSAVING 36,115.00 1,67,437.00 KOKANJUNIORSBDEPOSIT 1,69,307.00 65,185.00 DONATIONSSBDEPOSIT 88,383.00 2,03,455.00 K.B.D.D.S 1,36,928.00 30,94,955.25 LAKHPATIDEPOSITSCHEME 27,95,303.00 6,33,093.00 KOKANBANKMONTHLYDEPOSIT 5,22,734.00 - KOKANBANKGOLDENJUBILEEDEPOSIT 18,25,092.00

OVERDRAFTWITH 70,510.00 KOTAKBANK 69,508.00 11,42,297.00 IDBIBANK 3,10,790.00 15,30,634.00 UBIBANK(MAZ) 1,31,489.00

30,33,62,122.45 28,64,95,436.55

SALARY,ALLOWANCE&BONUS 14,19,32,379.08 Salary&Allowances 13,44,50,942.80 1,24,59,653.00 BankContributiontoP.F. 1,18,80,278.00 9,00,950.00 LeaveTravelFare 4,82,775.00 6,58,752.00 AdministrativeChargestoP.F. 5,09,855.00 10,980.00 BankContributiontoL.W.F. 11,052.00 24,200.00 MedicalExpenses - 28,00,000.00 Gratuity 47,25,000.00

15,87,86,914.08 15,20,59,902.80

DIRECTORS,LOCALCOMMITTEE 17,85,404.52 MEMBERSFEES&ALLOWANCES 15,23,596.00 RENT,TAXES,INSURANCE&LIGHTING 32,23,236.40 Rent 24,12,625.00 11,58,855.76 Taxes 6,70,342.48 71,84,726.97 Insurance 68,26,571.68 72,31,191.00 LightingCharges 72,63,572.50 5,69,017.00 PropertyTax 6,18,367.00 8,20,745.25 DRCRent 8,06,075.00

2,01,87,772.38 1,85,97,553.66

ExPEnDITURE

25



ExPEnDITURE

POSTAGE,TELEGRAM&TELEPHONECHARGES 1,13,282.00 Postage 5,00,177.85 8,30,489.88 TelephoneCharges/Fax 7,97,333.75 7,73,762.36 Courier 7,08,493.22 33,24,236.25 LeasedLineCharges 31,45,382.21 4,20,749.55 InternetCharges 6,69,191.23 4,03,808.33 SMSCharges 5,68,837.00

58,66,328.37 63,89,415.26

AUDITORS FEES 3,61,603.60 InternalAuditFees 5,36,623.10 8,43,455.90 StatutoryAuditFees 8,35,880.00 30,000.00 TaxAuditFees 1,36,570.00 12,94,246.40 ConcurrentAudit 13,03,153.40 66,000.00 EDP Audit - - GST audit 65,000.00 81,750.00 RevenueAudit - 57,850.00 InvestmentAudit 55,700.00

27,34,905.90 29,32,926.50

DEPRECIATIONON 20,55,353.51 Furniture&Fixture 23,27,840.77 35,22,964.69 PremisesPurchased 37,72,776.18 26,31,686.82 ComputerHardware 36,08,190.80 63,832.22 CivilWork 75,154.41 2,03,809.73 ComputerSoftware 10,78,029.79 15,97,015.55 Plant&Machinery 18,77,228.27

ONVEHICLE 44,769.59 MotorCycle 55,510.23 29,497.72 Maruti Ecco Van - 84,350.18 BoleroCashVan 1,15,686.04 68,621.37 MarutiEccoVan(3) 59,284.08 1,30,491.30 MarutiSuzukiDzire 1,41,212.17 35,129.65 Ertiga 1,23,677.25

1,04,67,522.33 1,32,34,589.99

STATIOnERy, PRInTInG AnD ADVERTISEMENT/PUBLICITY 16,43,997.33 StationeryConsumed 27,42,990.36 16,87,235.07 ComputerStationaryConsumedA/c 3,45,951.96 - Sponsorship 8,65,460.00 21,65,853.86 Advertisement/Publicity 25,13,722.50

54,97,086.26 64,68,124.82

26


MARCH,2017 MARCH,2018 INTERESTANDDISCOUNT ONLOANS&ADVANCES 33,42,17,709.25 LOAN 36,88,57,407.99 9,64,29,881.57 OVERDRAFT 10,37,41,308.46 2,22,46,425.90 CASHCREDIT 3,24,25,734.25 - L.C.DIS./INTONL.D./K.B.D.D.S. -

45,28,94,016.72 50,50,24,450.70

InT. On FIxED DEPOSIT WITH 3,65,561.00 M.D.C.C.BANKLTD. 55,730.00 - M.S.C.BANKLTD. 4,383.00 1,25,83,314.00 UNIONBANKOFINDIA(MAZ) 85,08,373.00 10,31,472.00 UJJIVANSMALLFINANCEBANK 12,63,680.00 10,56,265.00 SURVODAYSMALLFINANCEBANK 18,19,496.00 - JANASMALLFINANCEBANK 13,89,592.00 - FINCARESMALLFINANCEBANK 3,27,890.00 - AUSMALLFINANCEBANK 5,85,670.00 14,25,007.00 KOTAKBANK 22,03,009.00 1,12,60,576.00 I.D.B.I.(Com) 90,26,183.00 5,14,496.00 COSMOSBANK 3,02,131.00 1,06,56,519.00 PUNJAB&MAHARASHTRABANK 68,43,208.00 83,262.00 SHAMRAOVITHALBANK - 8,13,835.00 KALYANJANTASAHAKARI - 1,28,37,629.00 SARASWATCO-OPBANK 21,04,990.50 - BASSEIN CATHOLIC CO-OP BANK 2,99,279.00 30,48,575.00 DEVELOPMENTCO-OP.BANK 28,39,041.00 FRANKLINTEMPLETONMUTUALFUND 52,838.38 4,250.00 CALLMONEYWITHHDFC - 6,16,647.00 CALLMONEYWITHIDBI 1,61,168.00 4,94,518.87 IDFCMUTUALFUND 4,27,060.51 35,168.26 LIQUIDFUNDWITHIDBI - 8,56,930.38 LIQUIDFUNDWITHICICI 3,13,025.36 9,39,050.12 LIQUIDFUNDWITHKOTAK - - INDIABULLMUTUALFUND 23,575.40 19,23,868.61 BIRLASUNLIFEMUTUALFUND 3,85,678.35 ESSELMUTUALFUND 1,93,834.40 7,12,913.46 AxISMUTUALFUND - 2,31,655.07 UTIMUTUALFUND 6,61,373.07 21,95,606.65 RELIANCEMUTUALFUND 9,15,916.56 36,17,703.77 PEERLESSMUTUALFUND - 7,83,871.15 SBIMUTUALFUND 4,16,183.00 28,20,000.00 [email protected]% 8,85,166.33 30,05,000.00 [email protected]% 29,96,653.00 36,38,402.56 [email protected]% 9,49,513.67 33,13,605.56 [email protected]% 30,65,000.00 12,34,000.00 [email protected]% 12,34,000.00

INCOME

27



INCOME

31,50,000.00 [email protected]% 31,50,000.00 25,18,500.00 [email protected]%(2033) 32,85,000.00 1,09,13,806.22 [email protected]%(2051) 1,32,40,000.00 1,60,03,654.31 [email protected]%(2029) 2,37,65,000.00 23,81,013.89 [email protected]%(2039) 34,05,514.00 1,25,847.22 [email protected]%(2026) - 94,72,166.67 [email protected]%(2046) 1,05,90,000.00 38,33,611.11 [email protected]%(2035) 37,00,000.00 37,50,000.00 [email protected]%(2034) 37,50,000.00 75,90,000.00 [email protected]%(2029) 75,90,000.00 38,05,000.00 [email protected]%(2030) 38,05,000.00 8,69,625.33 [email protected]%(2034) - 18,20,475.00 [email protected]%(2018) - 13,68,056.22 [email protected]%(2030) - 6,40,416.67 [email protected]% 22,74,583.34 7,32,444.89 [email protected]%(2027) - 6,19,500.11 [email protected]%(2027) - 41,35,000.00 [email protected]%(2020) 29,63,417.11 1,49,500.00 [email protected]%(2032) - 2,19,027.77 [email protected]%(2040) - 44,85,000.00 [email protected]%(2030) 44,85,000.00 - SDL8.42%(2028) 26,42,944.33 - KLSDL8.35%(2029) 4,63,888.89 40,13,657.00 TBILL91DAYS - 11,34,907.00 TBILL364DAYS -

ONBONDPURCHASED 21,76,233.00 8.75%IRFC 14,87,500.00

16,80,07,144.87 14,08,51,489.20 COMMISSION,EXCHANGEANDBROKERAGE 82,60,670.96 COMMISSION 1,01,74,589.13 62,15,467.30 LOANCOMMISSION 57,11,107.50 1,05,814.00 COMMISSIONONBANKGRAN 1,75,370.00 36,24,178.95 PROCESSINGCHARGES 30,58,954.40 - COMMISSIONONYESBANKATM 12,81,517.29 2,15,000.00 COMMISSIONONIFFCOTOKIOINSURANCE 2,59,120.66 - COMMISSIONONBBPSCOLLECTION 15,678.77 - COMMISSIONONDHFLGENERALINSURANCE 10,259.79

1,84,21,131.21 2,06,86,597.54 OTHERRECEIPT 1,58,532.00 MiscellaneousEarning 1,24,736.92 61.00 DividendofMDCCBank - 2,10,418.00 LegalNotice&Reminders 1,61,801.00 7,30,082.75 IncomeofCENVATCreditClaim -

10,99,093.75 2,86,537.92

14,54,545.45 RecoveryinWriteOffA/c's 16,49,208.00

28

SUBSCHEDULESTOSCHEDULE



SUBSCHEDULE1 DEPOSITANDOTHERACCOUNTS (Sub-ScheduletoSchedule-"C) Savings Bank Deposits 2,378,622,445.43 SavingsBankAccounts 2,518,134,354.07 1,916,444.23 EasySaving 1,810,516.60 4,449,213.81 KokanJuniorsavingdeposit 5,159,661.01 8,632,129.13 Non-Res.(Ext)Saving 17,132,872.54 2,542,237,404.22

2,393,620,232.60 490,420,462.02 CurrentAccounts 621,472,680.11 621,472,680.11 Term Deposits 785,328,099.05 Fixed 797,679,873.10 1,549,719,872.60 Fixed-cum-Recurring 1,547,746,691.60 47,893,302.00 Recurring 57,050,766.00 7,105,600.00 MonthlyInterestDepositReceipt 8,647,500.00 61,312,454.85 Multiple 60,017,343.85 30,284,902.00 Non.Res(External)Term 32,406,730.00 14,350,862.00 K.B.D.D.C. 35,514,194.00 32,772,749.00 Lak.Dep.Scheme 29,436,994.00 - ABB TD-TL 6,250.00 1,684,944.40 DonationsSavingDeposit 1,849,965.95 - KokanBankGoldenJubileeDeposit 159,161,356.00 13,999,500.00 FDEarmarkedForSDV 15,114,500.00 2,744,632,164.50

2,544,452,285.90 2,169,199.05 Matured Term Deposits 6,341,161.05 6,341,161.05

2,169,199.05

5,430,662,179.57 5,914,683,409.88 SUBSCHEDULE2 SUnDRIES (Sub-scheduletoSchedue-"D")

3,348,382.25 UnidentifiedDeposits 3,491,938.95 7,723,883.61 Other Creditors 12,826,527.83 423,910.00 Security Deposits of Employees 529,910.00 472,000.00 Commissionrecd.Inadvance 675,252.00 197,370.20 SGST payable 567,563.28 197,100.71 CGST payable 566,213.79 3,201.50 AuthorisedCollectionAgentFund 41,626.50 2,667,559.00 Sundry Creditors-TDS 2,485,430.00 1,125,096.25 ExcessCash 1,438,496.25

29




16,098,862.00 ProvisionforLeaveEncashment 26,503,312.00 49,126,270.60

32,257,365.52 49,126,270.60 SUBSCHEDULE3 PROVISIONFORINCOMETAX

17,744,998.55 ProvisionforIncomeTax(A.Y.2010-11) - 26,600,000.00 ProvisionforIncomeTax(A.Y.2013-14) - 5,524,210.00 ProvisionforIncomeTax(A.Y.2015-16) 5,524,210.00 30,889,270.00 ProvisionforIncomeTax(A.Y.2016-17) - 36,735,421.00 ProvisionforIncomeTax(A.Y.2017-18) 36,735,421.00 26,783,161.00 ProvisionforIncomeTax(A.Y.2018-19) 26,783,161.00 - ProvisionforIncomeTax(A.Y.2019-20) 29,495,370.00 98,538,162.00

144,277,060.55 98,538,162.00 SUBSCHEDULE4 OTHER ASSETS (Sub-scheduletoSchedule-K) Miscellaneous Assets 1,815,708.60 PrepaidExpenses 1,136,346.93 4,994,299.00 Suspense 4,994,299.00 - ClearingSuspense(Receivables) - 6,130,645.93 Stock of Stamps 36,354.00 i)Adhesive 52,381.00 1,648.00 ii)Postal 1,476.50 53,857.50 34,594.00 Stock of Pancard Coupons - 34,594.00 3,397,500.00 AdvancepaymenttoGratuityTrust - 46,860.00 Margin money with Saraswat Bank - 814,590.00 EmployeesFestivalAdvance 794,360.00 3,653.00 AdvancetowardsStaffMediclaim - 252,803.00 ForPettyCash 784,630.00 163,941.00 AdvancetowardsPOSMachine 149,268.00 2,545,994.27 CGSTReceivable 3,421,688.31 688,617.45 SGSTReceivable 1,576,556.69 119,069.18 IGSTReceivable 260,133.71 13,904.78 InputtaxcreditCGST 42,225.33 13,904.77 InputtaxcreditSGST 42,225.32 5,838.00 DEAFclaimreceivable-RBI 2,035.90 7,073,123.26

14,949,279.05 13,292,220.69

30

SUBSCHEDULE5 OTHER ASSETS (Sub-scheduletoSchedule-K) TDS PAID 1,910,959.23 TDSPaid(A.Y.2010-11) --- 203,997.94 TDSPaid(A.Y.2013-14) --- 2,809,493.00 TDSPaid(A.Y.2014-15) 2,809,493.00 415,974.00 TDSPaid(A.Y.2015-16) 415,974.00 449,754.37 TDSPaid(A.Y.2016-17) --- 9,594,921.00 TDSPaid(A.Y.2017-18) 9,594,921.00 1,292,347.00 TDSPaid(A.Y.2018-19) 1,292,347.00 - TDSPaid(A.Y.2019-20) 932,291.04 - ITrefundreceivable(A.Y.2016-17) 3,010,357.00 - ITrefundreceivable(A.Y.2011-12) 19,208,460.00 37,263,843.04

16,677,446.54 37,263,843.04 SUBSCHEDULE6 OTHER ASSETS (Sub-scheduletoSchedule-K) Advance Tax 15,797,360.00 AdvanceTax(A.Y.2010-11) --- 24,689,060.00 AdvanceTax(A.Y.2013-14) --- 16,050,000.00 AdvanceTax(A.Y.2014-15) 16,050,000.00 12,000,000.00 AdvanceTax(A.Y.2015-16) 12,000,000.00 33,500,000.00 AdvanceTax(A.Y.2016-17) --- 37,000,000.00 AdvanceTax(A.Y.2017-18) 37,000,000.00 23,000,000.00 AdvanceTax(A.Y.2018-19) 26,612,440.00 - AdvanceTax(A.Y.2019-20) 19,500,000.00 111,162,440.00

162,036,420.00 111,162,440.00




31

SCHEDULE-“M”

NOTESFORMINGPARTOFTHEPROFITANDLOSSACCOUNT FOR THE yEAR EnDED 31STMARCH,2019ANDBALANCESHEETASONTHATDATE.

I. 1) OVERVIEW

TheKokanMercantileCo-op.Bank Ltd. (KokanBank)was incorporated in 1969 and has completed its 50yearsofprovisionofwiderangeofbankingandfinancialservicesincludingcommercialbankingandtreasuryoperations

2) BASIS OF PREPARATIOn

Thefinancialstatementshavebeenpreparedandpresentedunderthehistoricalcostconventionontheac-crual basis of accounting, unless otherwise stated, and comply with generally accepted accounting principles, statutoryrequirementsprescribedunderTheBankingRegulationAct1949,andtheMultiStateCo-operativeSocietiesAct,2002,circularsandguidelinesissuedbytheReserveBankofIndia(‘RBI’)fromtimetotime,theAccountingStandards(‘AS’)issuedbytheInstituteofCharteredAccountantsofIndia(‘ICAI’)andcurrentpracticesprevailingwithinthebankingIndustryinIndia

3) USE OF ESTIMATES

Thepreparationofthefinancialstatements,inconformitywithgenerallyacceptedaccountingprinciples,requiresmanagementtomakeestimatesandassumptionsthataffectthereportedamountsofassetsandliabilities,revenuesandexpensesanddisclosureofcontingentliabilitiesatthedateofthefinancialstatements.Actualresultscoulddifferfromthoseestimates.Managementbelievesthattheestimatesusedinthepreparationofthefinancialstatementsareprudentandreasonable.Anyrevisionstotheaccountingestimatesarerecognizedprospectively

II. SIGNIFICANTACCOUNTINGPOLICIES:

1) AccountingConvention

ThefinancialstatementsaredrawnupkeepinginmindthehistoricalcostandgoingconcernconceptandinaccordancewithgenerallyacceptedaccountingprinciplesandpracticesprevailinginBankingIndustryinIndia,exceptotherwisestated.

2) Revenue Recognition

IncomeandExpenditureareaccountedonaccrualbasisexceptasstatedbelow:

i) InterestonAdvancesclassifiedasSub-Standard,DoubtfulorLossAssetsisrecognisedonrealisation,asperIncomeRecognitionnormsofRBI.TheunrealisedinterestinthesecasesisaccountedinOverdueInterestReserve.

ii) InterestonFixedIncomeSecuritiesisrecognisedonaccrualbasisincaseitisservicedregularly.DividendIncomeisaccountedondeclarationofdividend

iii) LeaveencashmentandAnnualMaintenanceContractFeesareaccountedoncashbasis

iv) Expensesofcapitalnatureandotherwiselikesoftware,electionexpenseandVoluntaryRetirementScheme(VRS)expenditureetc.,aretreatedasDeferredRevenueExpenditureandarewrittenoffasunder

Software 3years

ElectionExpenses 5years

VRS 5 years

32

v) Ex-gratiapayabletoemployeesisnotchargedtoProfit&LossA/c.butappropriatedfromtheProfit&LossA/c.aftermandatoryappropriationanddividendaspertheprovisionsofMultiStateCo-operativeSocietiesAct, 2002.

3) Advances

a) AdvancesareclassifiedintoStandard,Sub-Standard,DoubtfulandLossAssetsinaccordancewiththeguidelinesissuedbytheReserveBankofIndiafromtimetotime.

b) ProvisiononAdvancescategorizedunderSub-Standard,DoubtfulandLossAssetsismadeinaccordancewiththeguidelinesissuedbytheReserveBankofIndia.Inaddition,ageneralprovisiononStandardAssetsismadeasperRBIMasterCircularNo.RBI/2015-16/77DCBR.BPD.(PCB)MCNo.14/13.05.000/2015-16dated July 1, 2015.

c) TheoverdueinterestinrespectofadvancesclassifiedasNon-PerformingAssetsisprovidedseparatelyunder“OverdueInterestReserve”asperthedirectivesissuedbytheRBI

4) Investments

i) TheBankhascategorizedthe investments inaccordancewithRBIguidelinesapplicable toUrbanCo-operativeBanks.Accordingly,classificationofinvestmentsforthepurposeofvaluationisdoneunderthefollowing categories:

a)HeldtoMaturity(HTM) b)AvailableforSale(AFS) c)HeldforTrading(HFT)

ii) Investmentshavebeenclassifiedunder4groupsasrequiredunderRBIguidelines–Governmentsecurities,OtherTrusteeSecurities,Shares,PSUBonds&othersforthepurposeofdisclosureintheBalanceSheet.

iii) InvestmentsearmarkedagainstStatutoryReserveFundandOtherFundsandInvestmentsunderHTMcategoryaretreatedasPermanentInvestmentsandcarriedatcost. Other investmentsaretreatedasCurrentInvestmentsasrequiredbyAS13ofInstituteofCharteredAccountantsofIndia.

iv) InvestmentsclassifiedunderHeldtoMaturitycategoryhavebeencarriedatacquisitioncost.Non-performingsecuritiesarefullyprovidedfor. InthecaseofsecuritiesunderHeldtoMaturityCategorywhereintheacquisitioncostismorethanthefacevalue,thepremiumamountisamortisedovertheremainingperiodof maturity.

v) SecuritiesunderAvailableforSale/HeldforTradingcategoryaremarkedtomarket.Securitiesarevaluedscrip-wiseandaggregatedcategory-wise.Depreciation/appreciationundereachcategoryarenettedandthenetdepreciationisprovidedfor.Netappreciationisignored.

vi) MarketvalueinthecaseofStateGovt.andotherSecurities,forwhichquotesarenotavailableisdeterminedonthebasisofthe“YieldtoMaturity”indicatedbyFixedIncomeandMoneyMarketDerivativesAssociationofIndia(FIMMDA)andFinancialBenchmarkIndiaPvtLtd(FBIL).

vii) CostofBrokerage,Fees,Commissionandbrokenperiodinterestatthetimeofacquisitionofsecuritiesarerecognisedasrevenueexpenses.

5) Fixed Assets and Depreciation

i) FixedAssetsarestatedathistoricalcostlessaccumulateddepreciationinaccordancewithAS-10issuedbyICAI.FixedAssetsincludeincidentalexpensesincurredonacquisitionandinstallationoftheassets

ii) Depreciationisprovidedonwrittendownvalueonallthefixedassetsexceptcomputersandpremises.Depreciation on computers is calculated under Straight Line Method.

iii) Depreciationonpremisesiscalculatedonthebasisofratedeterminedwithreferencetoresiduallifeofeach item of premises.

iv) Fixedassets are depreciated at the rates as determinedby themanagement except depreciation oncomputerswhichischarged@331/3%asperRBIguidelines,whichisasunder:

33

Furniture&Fixtures 10%Vehicles 15%Computers 331/3%PlantandMachinety 15%CivilWork 10%

v) DepreciationonassetspurchasedarechargedonPro-ratabasistotheextentofassetputtouse.

vi) Profit/Lossonsaleordisposalofassetisrecognizedintheyearinwhichsuchsaleordisposaltakesplace.

vii) a) ThesurplusarisingoutofrevaluationofpremisescarriedoutiscreditedtotheRevaluationReserve intheBalanceSheet.Thisreserveisusedtoamortisethesurplusarisingoutofdifferencebetween revaluedcarryingamountoftheassetanditsoriginalcostovertheremainingusefullifeofthepremises.

b) Thewholeofrevaluationsurplusistransferredtothegeneralreserveswhentheassetisderecognised, retired or disposed of.

c) Inrespectofpremiseskeptinusebythebank,yearlyamortizationofrevaluationsurplusofthepremises isdebitedtoProfitandLossaccountalongwithdepreciationonoriginalcostofpremises.Correspondingly, yearlyamortizationofrevaluationsurplusofthepremisesisdebitedtorevaluationreservewithidentical credittogeneralreserve

6) StaffRetirementBenefits(AS-15)

i) TheliabilitytowardsgratuityisassessedonactuarialvaluationinaccordancewithProjectedCreditUnitMethodasperAccountingStandard–15(Revised)andthesameisfullyprovidedfor.

(ii) Bank’scontributiontoProvidentFundisaccountedforonthebasisofcontributiontothescheme.

(iii) Leaveencashmentisaccountedoncashbasis.

7) SegmentReporting(AS-17)

In accordance with the Accounting Standard-17 issued by ICAI, Segment Reporting is made as under:

l Treasury includes all investment portfolio, profit / loss on sale of investments, profit / loss on foreignexchangetransactions,equitiesandmoneymarketoperations.Theexpensesofthissegmentconsistofinterestexpensesonfundsborrowedfromexternalsourcesaswellasinternalsourcesanddepreciation/amortizationofpremiumonHeldtoMaturitycategoryinvestments.

l OtherBankingOperationsincludeallotheroperationsnotcoveredunderTreasuryoperations.

8) Leases (AS 19)

LeasepaymentsforassetstakenonoperatingleasearerecognizedintheProfitandLossAccountovertheleaseterminaccordancewiththeAS-19–Leases,issuedbyICAI.

9) Earnings Per Share (AS 20)

Basicanddilutedearningspersharearecalculatedbydividingthenetprofitfortheperiodbytheweightedaveragenumberofsharesoutstandingduringtheyear.Theweightedaveragenumberofsharesiscalculatedon monthly basis.

10) Accounting For Taxes On Income(AS 22):

a) Taxexpensecomprisesofbothdeferredandcurrenttaxes.Deferredincometaxesreflecttheimpactofcurrentyeartimingdifferencesbetweentaxableincomeandaccountingincomefortheyearandreversaloftimingdifferencesofearlieryears.

34

b) DeferredTaxisbasedontaxratesandthetaxlawseffectiveattheBalanceSheetdate.

c) Deferredtaxassetsarerecognizedonlytotheextentthatthereisreasonablecertaintythatsufficientfuturetaxableincomewillbeavailableagainstwhichsuchdeferredtaxassetscanberealized.

11)IntangibleAssets(AS-26)

ComputerSoftwarepurchasedforBank’suseisamortizedonaStraightLineMethod(SLM)basis@331/3%,consideringtheusefullifeas3years,inaccordancewithRBIguidelines.

12)Provisions,contingentliabilitiesandcontingentassets(AS-29):

AprovisionisrecognizedwhentheBankhasapresentobligationasaresultofpasteventwhereitisprobablethatanoutflowofresourcesembodyingeconomicbenefitswillberequiredtosettletheobligation,inrespectofwhichareliableestimatecanbemade.Provisionsarenotdiscountedtoitspresentvalueexceptincaseofdecommissioning,restorationandsimilarliabilitiesthatarerecognizedascostofProperty,PlantandEquipmentandaredeterminedbasedonbestestimateoftheexpenditurerequiredtosettlethepresentobligationatthebalancesheetdate.Thesearereviewedateachbalancesheetdateandadjustedtoreflectthecurrentbestestimates.

A disclosure of contingent liability is made when there is:

i) Apossibleobligationarisingfromapastevent,theexistenceofwhichwillbeconfirmedbyoccurrenceornonoccurrenceofoneormoreuncertainfutureeventsnotwithinthecontroloftheBank;or

ii) Apresentobligationarisingfromapasteventwhichisnotrecognizedasitisnotprobablethatanoutflowofresourcesembodyingeconomicbenefitswillberequiredtosettletheobligationorareliableestimateofthe amount of the obligation cannot be made.

When there isapossibleorapresentobligation in respectofwhich the likelihoodofoutflowof resourcesembodyingeconomicbenefitsisremote,noprovisionordisclosureismade.

Contingentassetsarenotrecognizedinthefinancialstatements.However,contingentassetsareassessedcontinually.

III.NOTESFORMINGPARTOFTHEACCOUNTSFORTHEYEARENDED31STMARCH,2019.

1) TheBankhaswrittenoffanamountofRs.249.11lakhs(Rs.384.48lakhs)towardsbaddebtsandwhichisidentifiedbytheManagementasirrecoverable,approvedbytheBoardofDirectorsandcertifiedbytheStatutoryAuditors.ThesameisadjustedagainstBadandDoubtfulDebtsReserves.Thisamounthadbeenfullyprovidedfor in the earlier years.

2) TheBankhasacceptedtheapplicationsforVRSfrom04employeeswithtotalconsiderationofRs.22.89lakhsduringtheyear.TheVRSexpendituretreatedasDeferredRevenueExpenditureisdebitedtoProfit&LossAccountbyamortising@20%p.a.amountingtoRs.18.97lakhsinaccordancewiththeBank’sAccountingPolicy.UnamortisedVRSexpenditureofRs.66.72lakhsisappearingunderthehead“DeferredRevenueExpenditure”.

3) Bank’sIncomeTaxAssessmentforA.Y.2014-15isfinalised.TheIncomeTaxDepartmenthasraisedademandofRs.1,36,24,590.00.Beingaggrievedby thedemand, thebankhasfiledanappealagainst thedemand.However,thereisacontingentliabilityofRs.1,36,24,590.00onthebank.

4) LossonsaleofassetsincludeslossofRs.77,125.81pertainstolossonsaleofMaruticarincurredin2018-19.

35

5) Detailsofloanssubjectedtorestructuringduringtheyearended31stMarch,2019aregivenbelow:

(Rsinlakhs)

Sr. Particulars Housing Loan CDR SME Debt Others No. Mechanism Restructuring

1. Standard No.of - - - (2) advances Borrowers restructured Amount outstanding - - - (501.08) Diminution in thefairvalue - -

2. Sub-standard No. of - - - - advances Borrowers restructured Amount - - - - outstanding Diminution in - - - - thefairvalue

3. Doubtful No.of - - - - advances Borrowers restructured Amount - - - - outstanding Diminution in - - - - thefairvalue

Total No.of - - - (02) Borrowers Amount - - - (501.08) outstanding Diminution in - - - - thefairvalue

TheserestructuredloansconstituteNil(1.36%)ofthetotaladvancesasat31.03.2019.

Amountandnumberofaccountsinrespectofwhichapplicationsreceivedandunderprocess,buttherestructuringpackageshavenotyetbeenapproved-NIL(NIL)ason31.03.2019.

6) PriorPeriodExpensesandIncome(AS-5)

PriorperiodexpensesofRs.181834.77pertaintoprofessionalchargesofRs.14,117.80,AMCchargesofRs.710.97 and salaries of Rs. 1,67,006.00

7) Property,PlantandEquipments(AS-10)

a) TheBankhasdisclosedthefixedassetsanddeprecationintheBalanceSheetinaccordancewithAS-10issuedbyICAIandupdateditsFixedAssetRegisterincompliancewithsaidaccountingstandards.

b) TheBankhasdebitedyearlyamortizationofrevaluationsurplusofthepremisesofRs.167.72LakhstoProfitandLossaccountalongwithdepreciationofRs.37.72Lakhsonoriginalcostofpremises.Correspondingly,yearlyamortizationofrevaluationsurplusofthepremisesofRs.167.72Lakhsisdebitedtorevaluationreservewithidenticalcredittogeneralreserve.

36

8)RetirementBenefits(AS-15)

a) ThebankhasmadeprovisionofRs.250lacstowardsleaveencashmentduringtheyear.

b) TheBank’sPresentValueofObligations(PVO)ofgratuityisRs.1373.13lacsascomparedtoFairValueofPlanAssets(FVP)ofgratuityofRs.1325.90resultinginGratuityliabilityofRs.47.23lacs.ThebankhaspaidRs.47.25 lacs toKokanBankStaffGratuityFund includingadvancepaymentofRs.33.97 lying in“AdvancePaymenttoGratuityTrust”andbalanceofRs.13.28lacs.

c) ThedetailsasrequiredbyAccountingStandard15(Revised)pertainingtoGratuityisasunder:

Rs.Inlacs)

Sr. Particulars Gratuity (Funded) Gratuity (Funded) no. 31.03.2018 31.03.2019

1 Discountrate 7.68%p.a. 7.44%p.a.

2 ExpectedReturnonplanassets 8.00%p.a. -

3 Salaryescalationrate 7.41% 10.00%

4 Reconciliation of opening and closing balance of thepresentvalueofthedefinedbenefitobligation:

i Presentvalueofobligationasat01-04-2018 1308.37 1273.84

ii Interestcost 86.68 92.53

iii Currentservicecost 30.80 27.79

PastServiceCost - 133.16

iv Benefitspaid (104.13) (138.00)

v Actuarialgains/(loss)onobligations (47.88) (16.19)

vi Presentvalueofobligationasat31-03-2019 1273.84 1373.13

5 Reconciliation of opening & closing balance of fair value of fair plan assets:

i Fairvalueofplanassetsasat01-04-2018 1378.69 1390.20

ii. Adjustment to Opening Balance - -

iii Expectedreturnonplanassets 106.14 105.70

iv Contributions - -

v Transferfromotherentities - -

vi Benefitspaid (104.13) (138.00)

vii Actuarialgain/(loss)onplanassets 9.50 (32.00)

viii Fairvalueofplanassetsasat31-03-2019 1390.20 1325.90

6 AmountrecognizedinBalanceSheet

i Presentvalueofobligationsasat31-03-2019 1273.84 1373.13

37

ii FairvalueofPlanAssetsasat31-03-2019 1390.20 1325.90

iii. FundedStatus 116.36 (47.23)

iv NetAssets(liability)asat31-03-2019 116.35 (47.23)

7 ExpensesrecognizedinProfit&LossAccount

i Currentservicecost 30.80 27.79

ii Interestcost 86.68 92.53

iii. Past Interest cost - -

iv ExpectedreturnonPlanAssets (106.14) (105.70)

v. Netactuarial(gain)/loss (57.38) (32.00)

vi. ExpensesrecognizedinProfit&LossAccount (46.02) (17.38)

9) Primary Segment Reporting (By Business Segments) Accounting Standard 17 (AS 17)

Particulars Treasury Other Banking Total Operations 31st March 2019

Revenue 1428.95 5526.61 6955.56

(2071.19) (4,739.50) (6810.69)

Segment Cost 1122.61 4610.04 5732.65

(1296.68) (4732.14) (6028.82)

Result 306.34 916.57 1222.91

(774.51) (7.36) (781.87)

Less:UnallocatedProvisionsandContingencies 317.36

(197.91)

Add:Reserves&Fundswrittenback 208.77

(784.48)

ProfitBeforeTax 1114.32

(1368.44)

IncomeTax/DeferredTaxAsset 382.07

(473.73)

NetProfitAfterTax 732.25

(894.71)

PriorPeriodAdjustment/IFR 1.82

(198.92)

NetProfitTrfd.ToBalanceSheet 730.43

(695.79)

38

OTHER InFORMATIOn

Segment Assets 22402.83 51180.70 73583.54

(22698.73) (46632.90) (69331.63)

UnallocatedAssets 2016.57

(2106.53)

Total Assets 75600.11

(71438.16)

Segment Liabilities 683.87 61107.10 61790.98

(743.61) (54924.58) (55668.19)

UnallocatedLiabilities 13809.13

(15769.97)

Total Liabilities 75600.11

(71438.16)

i) TheBankiscateringmainlytotheneedsofIndiancustomers,operatesasasingleunitinIndia,henceseparateinformationregardinggeographicalsegmentisnotgiven.

ii) Businesssegmentsareclassifiedasunder–

a) Treasury:DealingoperationsinMoneyMarketInstruments,Trading/InvestmentinBonds/Government Securities.

b) OtherBankingOperations:Localfinance/services.

iii) Theabovesegmentsarereportedbasedonthenatureofproducts/servicesandtheirattributablerisks/returns,overallorganizationalstructureandtheinternalmanagementreportingsystemoftheBank

10) RelatedPartiesandDisclosure(AS-18)

TheBankisaCo-operativeSocietyundertheMultiStateCo-operativeSocietiesAct,2002andtherearenoRelatedPartiesrequiringdisclosureunderAccountingStandard18issuedbyI.C.A.I.,otherthanKeyManagementPersonneli.e.Mr.A.H.Khidir(12.12.2018)andMr.SadanandNayak(31.03.2019)theChiefExecutiveOfficer(s)oftheBank.However,intermsoftheReserveBankofIndiaCirculardated29.03.2003,hebeingasinglepartycoveredbythiscategory,nofurtherdetailsthereonneedtobedisclosed.

11) LEASES (AS 19)

LeaserentalobligationsinrespectofassetstakenonoperatingleasearechargedtoProfitandLossAccountonstraight-linebasisovertheleaseterm.InitialdirectcostsarechargedtoProfitandLossAccount.

TheBankhascancellableoperatingleasesandthedisclosuresunderAS-19on“Leases”issuedbyICAIareas follows:

(Rs.Inlacs)

Particulars 31.03.2018 31.03.2019 Futureleaserentalpayableasattheendoftheyear:

39

Notlaterthanoneyear 20.38 4.8

Laterthanoneyearandnotlaterthanfiveyears 19.49 48.25

Laterthanfiveyears -

Totalofminimumleasepaymentsrecognizedinthe ProfitandLossAccountfortheyear 32.23 24.13

Totaloffutureminimumsub-leasepaymentexpectedto bereceivedundernon-cancellablesub-lease 0 0

Sub-leasepaymentsrecognizedintheProfitand Loss Account for the year 0 0

12) EARnInGS PER SHARE (EPS) (AS 20) :

Particulars 31.03.2018 31.03.2019 A Profitaftertax(Rs.InLakhs) Amountusedasnumerator 894.71 732.24

B NominalvalueofShare(Rs.PerShare) Rs.10/- 25/- Rs.25/-

C NumberofEquitysharesusedasthedenominator 5,594,264 6,484,994

D EPS–Basic&Diluted(inRs.) 15.99 11.29

13) ConsolidatedFinancialStatements(AS-21)

SinceBankdoesnothaveanySubsidiaryCompanies/Co-OperativeSocieties,theAccountingStandard21(AS-21)regardingconsolidatedfinancialstatementsisnotapplicabletotheBank.

14) AccountingfortaxesonIncome(AS-22)

ThemajorcomponentsofDeferredTaxLiability(net)arisingonaccountoftimingdifferencesbetweenbookprofitandtaxableprofitsasat31stMarch,2019areasfollows:

(Rs. in lacs)

Particulars Balance as on For the Balance as on 31.03.2018 year 31.03.19

Deferred Tax Liability

DepreciationonFixedAssets (207.07) (3.82) (210.89)

ProvisionforGratuity (89.45) - (89.45)

TOTAL (B) (296.52) (3.82) (300.34)

Deferred Tax Assets

DepreciationonInvestment (105.33) (105.33)

Bad&DoubtfulDebtsReserve 313.39 (119.66) 193.73

LeaveEncashment 45.49 36.36 81.85

TOTAL (A) 253.55 (83.30) 170.25

NetDeferredTaxAsset(Liability)(A-B) (42.97) (87.12) (130.09)

40

TheapplicationofDeferredTaxhasresultedinanetdebitofRs.87.12lakhstotheProfitandLossAccountfortheyearendedMarch,2019.TheclosingDeferredTaxLiability(net)ofRs.130.09lacshasbeenshownseparately in the Balance Sheet

15) DetailsofExpenditureonComputerSoftware(AS-26)

Details of Computer Software in accordance with Accounting Standard 26 on Intangible Assets issued by ICAI are as under:

Particulars Amount (Rs. in lacs)

31.03.2018 31.03.2019

Carrying amount at the beginning of the year 0.27 17.93

Add:Additionsduringtheyear 19.70 111.32

19.97 129.25

Less:Amortisationduringtheyear 2.04 10.78

Carryingamountattheendoftheyear 17.93 118.47

16) ImpairmentofAsset(AS-28)

TheBankhasascertainedthatthereisnomaterialimpairmentofanyofitsassetsandassuchnoprovision underAccountingStandard28issuedbytheICAIisrequired.

17) AS-29–ContingentLiabilities

31.03.2018 (Rs.) Particulars 31.03.2019 (Rs.)

6,37,04,505.00 BankGuarantees 5,29,72,226.19

18) ContingentLiabilities–Others

In termsofDBODCircularNo.DEAFCell.BC.114/30.01.002/2013-14datedMay27, 2014, theBankhastransferredcreditbalancesamountingtoRs.8.44lakhs(mentionedinsub-clausei)toviii)inClause3ofDEAFScheme2014)maintainedwiththeBankwhichhavenotbeeninoperationfor10yearsormore.Therequireddisclosure as per the said circular is as under:

(Rs.inlakhs)

Particulars 31.03.2018 31.03.2019

OpeningbalanceofamountstransferredtoDEAF 26.01 42.78

Add:AmountstransferredtoDEAFduringtheyear 16.76 8.44

Less:AmountsreimbursedbyDEAFtowardsclaims 0.00 0.06

ClosingbalanceofamountstransferredtoDEAF 42.77 51.16

TheBankhasnotpaidanyamounttothecustomers/depositorstowardsthesaiddepositswhichhaveremainedunclaimed for 10 years or more as no claim was lodged with the bank during the year.

41

19) Previous year’s figureshavebeen re-grouped/re-arrangedwherever necessary to conform to thepresentation of the accounts of the current year.

IV. DisclosureasperRBICircularNo.UBDCOBPD(PCB)Cir.No.52/12.05.001/2013-14dated25.03.2014(Rs. in lacs)

Sr no. Particulars 31.03.2018 31.03.2019

1) CapitaltoRiskAssetRatio(CRAR) 18.33 18.04

2) MovementofCRAR(BasisPoint) 1.05 (0.48)

RiskWeightedassets 41,082.92 45,013.23

3) ValuesofInvestmentsareasunder:

Government/ApprovedSecurities-(SLR)

Book Value 14214.62 13694.97

FaceValue 14200.00 13700.00

MarketValue 13476.79 13046.78

FixedDepositswithState,District,CentralCooperativeBanks and other banks 6449.73 7296.08

Bonds of Public Sector Undertakings

BookValue 1130.63 822.79

FaceValue 2240.00 1720.00

MarketValue 1608.73 1174.52

SharesinCo-operativeInstitutions 0.02 0.02

TotalBookValue 21795.00 21813.84

4.(i)CompositionofNonSLRInvestmentsason31stMarch2019(Rs. in lacs)

Sr. Issuer Amount Extent of ‘below Extent of Extent of no. Investment grade’ ‘unrated ‘unlisted’ Securities securities’ securities

i) PSUs 424.48 Nil Nil -

ii) FIs 398.31 Nil Nil -

iii) Public,PrivateBanks&Co-opbank 2407.92 Nil Nil -

iv) Others(sharesinco-opinstitutes) Nil Nil Nil Nil

Total 3230.71 nil nil -

v) Provisionheldtowardsdepreciation 3230.71 Nil Nil -

Total 320.72 nil nil nil

42

ii.Non-PerformingNon-SLRInvestment (Rs. in lakhs)

Particulars 31.03.2018 31.03.2019

Opening Balance Nil nil

Additions during the year since 1st April Nil nil

Reductionsduringtheaboveperiod Nil nil

Closing Balance * Nil nil

Total provisions held Nil nil

iii) There were no Repo / Reverse Repo Transactions during the year.

Sr no. Particulars 31.03.2018 31.03.2019

6) Average cost of deposits 5.54% 4.84%

7) nPAs

a) GrossNPAs 2463.23 2458.43

b) NetNPAs 41.48 285.79

c) NonPerformingInvestment NIL nIL

8) Movement in nPA

OpeningBalance 3286.11 2463.23

Add:Additionsduringtheyear 485.46 924.24

Less:Closed/Recovered/WrittenOff 1308.34 929.04

ClosingBalance 2463.23 2458.43

9) Disclosure of net nPAs

GrossNPAs 2463.23 2458.43

Less: Net Reductions during the year -

Less:Provisionsduringtheyear 2421.75 2172.64

NetNPAs 41.48 285.79

5.AdvancesofRs.40602.31lakhs(Rs.36,716.50lakhs)shownintheBalance-sheetinclude:(Rs. in lakhs)

Particulars 31.03.2018 31.03.2019

i) AdvancesagainstRealEstate,ConstructionBusiness,Housing

ConstructionBusiness&RealEstate 5852.52 6493.23

Housing 2876.14 2285.31

Shares&Debentures 0.00 0.00

ii) AdvancetoDirectors,theirrelativesandCompanies/Firms in which they are interested NIL nIL

43

Sr no. Particulars 31.03.2018 31.03.2019 10) Profitability

a) Interestincomeasapercentageofworkingfunds 8.87 8.70

b) Non-interestincomeasapercentageofworkingfunds 0.86 0.33

c) Operatingprofitasapercentageofworkingfunds 2.84 1.93

d) ReturnonAssets(NetProfit/Averageofworkingfunds)% 1.31 1.02

e) Business(Deposits+Advances)peremployee(Rs.inlacs) 316.05 374.99

f) Profitperemployee(Rs.inlacs) 3.12 2.52

11) a) Provisionrequired-BDDR 1658.88 1490.13

b) Provisionmade-BDDR 2421.75 2172.64

12) Movement in provisions

A. Towards nPAs


Add: Additions during the year --

Less:Closed/Recovered/WrittenOff/Reversed 784.48 249.11

Closing Balance 2421.75 2172.65

B. Towards Standard Assets

Opening Balance 201.11 201.11

Add: Additions during the year -- --

Closing Balance 201.11 201.11

C. TowardsDepreciationonInvestments


Add: Additions during the year 40.64 57.00

Less:Closed/Reversed/Transferred/writtenbackduringthe year -- 116.69

Closingbalance 380.46 320.77

13) Foreign currency assets N.A n.A

ForeigncurrencyLiabilities N.A n.A

14) PaymenttoDICGCpremiumuptodate(noarrearsthereof) 66.32 55.39

15) NopenaltyhasbeenimposedbyReserveBankofIndiaduringtheyear.

44

CASH FLOW STATEMENT FOR THE YEAR ENDED 31st MARCH, 2019

PARTICULARS Rs.InLacs Cash NetFlow Inflow/Outflow

CASHFLOWFROMOPERATINGACTIVITIES

NetProfitAfterTax 732.24

Add:IncomeTax 294.95

DeferredTax 87.12 382.07

Add: notional Entries/Adjustment Entries

DepreciationonFixedAssests 132.35

Provisions 317.36

LossonSaleofFixedAssets 3.00

LossonSalesofInvestments 7.60

AmortisationofRevaluationReserve 167.72

AmortisationofpremiumonInvestment 13.67 641.69

Less:Profitonsaleoffixedassets 1.06

Profitonsaleofinvestment 20.44

ExcessprovisionofIncomeTaxwrittenBack 208.78 230.27 793.49

1,525.73

(INCREASE)/DECREASEINOPERATINGASSETS

Advances (3,885.80)

OtherAssets 306.88

DeferredTaxAssets

DepositsAndOtherAccounts 4,141.48

InterestReceivableonAdvances (135.85)

BranchAdjustments(Net) -

InterestPayableOnTermDeposits (11.51)

OtherLiabilities (438.74)

OVERDUEINTERESTRESERVE(PA) 76.70

53.16 53.16

CashGeneratedfromOperatingActivites 1,578.90

Tax Paid 334.32

Gratuity Paid 47.25

Leave Encashment Paid 145.96

NetCashFlowfromOperatingActivities(A) 1,051.37

45

ASPEROURREPORTOFEVENDATE ThisistheProfit&LossA/CreferredtoinourReportofEvenDate.

FORYARDIPRABHU&ASSOCIATESLLP FORKOKANMERCANTILECO-OP.BANKLTD.CHARTEREDACCOUNTANTS FRn:111727 W / W100101 SADAnAnD K. nAyAK CHIEFEXECUTIVEOFFICERPLACE:MUMBAI DATED : 31st August 2019

CASHFLOWFROMINVESTINGACTIVITIES

Investments 827.49

InterestoninvestmentReceivable 314.74

profitonsaleofinvestment 20.44

LossonSaleofFixedAssets (3.00)

LossonSalesofInvestments (7.60)

SaleofFixedAssets 5.00

PurchaseofFixedAssets (472.65) 684.43

NetCashFlowfromInvestingActivities(B) 684.43

CASHFLOWFROMFINANCINGACTIVITIES

IncreaseinShareCapital 141.43

IncreaseinReserve

DividendPaid (165.97)

NominalFees 2.00

EntranceFees 2.00

UtilisatioinofFunds 6.17 (14.37)

NetCashFlowfromFinancingActivities(C) (14.37)

NETCASHOUTFLOWSONACCOUNTOFOPERATING, INVESTINGANDFINANCINGACTIVITIES(A+B+C) 1,721.43

CASHANDCASHEQUIVALENTSATTHEBEGINNINGOFTHEYEAR 9,132.22

CASHANDCASHEQUIVALENTATTHEENDOFTHEYEAR 10,853.65

NETOUTFLOWINCASHANDCASHEQUIVALENTSWITHINTHEYEAR 1,721.43

Details of cash and cash equivalents 31.03.19 31.03.18

InhandandwithRBI,StateandDistrictCo-op.Banks 2,214.20 1,940.53

Balancewithotherbanks 8,639.45 7,191.69

MoneyatCall&shortNotice - -

TOTAL 10,853.65 9,132.22

46

INDEPENDENT AUDITORS’ REPORTFOR THE yEAR EnDED 31STMARCH,2019

(UnderSection31oftheBankingRegulationAct,1949andSection73(4)ofMultiStateCo-Operative SocietiesAct,2002andRule27ofMultiStateCo-OperativeSocietiesRules).

ToThe Members,KokanMercantileCo-op.BankLtd.,Mumbai.

Opinion

1. WehaveauditedtheaccompanyingFinancialStatementsofKokanMercantileCo-operativeBankLimited,(“thebank”)whichcomprisesofBalanceSheetasatMarch31,2019andProfitandLossAccountandtheCashFlowStatementfortheyearendedonMarch31,2019andasummaryofsignificantaccountingpoliciesandotherex-planatoryinformationinwhichareincludedreturnsofHeadOfficeanditsdepartmentsand25branches,whichhavebeenauditedbyusandareconsolidatedinthesefinancialstatements.Sinceallthebranchesaresubjectedtostatutoryaudit,thematterofsubmissionofdetailsofpercentofadvances/deposits/interestincome/interestexpenseofunauditedbranchesisnotapplicable.

2. Inouropinion,andtothebestofour informationandaccordingtotheexplanationsgiventous, theaforesaidfinancialstatementsgivetheinformationrequiredbytheBankingRegulationAct,1949,theMultiStateCoopera-tiveSocietiesAct,2002andtherulesmadethereunderandtheguidelinesissuedbytheReserveBankofIndia(RBI)andtheCentralRegistrarofCooperativeSocieties,inthemannersorequiredandgiveatrueandfairviewin conformity with the accounting principles generally accepted in India.

i) OfthestateofaffairsoftheBankasatMarch31,2019and

ii) True&fairbalanceofprofitandtheCashFlowsforthefinancialyearendedonthatdate.

Basis of Opinion

3. WeconductedourauditinaccordancewiththeStandardsonAuditing(SAs)issuedbytheInstituteofCharteredAccountants of India (ICAI).Our responsibilities under those standardsare further described in theAuditor’s ResponsibilitiesfortheAuditoftheFinancialStatementssectionofourreport.WeareindependentofthebankinaccordancewiththecodeofethicsissuedbytheICAItogetherwithethicalrequirementsthatarerelevanttoourauditofthefinancialstatementsundertheprovisionsoftheBankingRegulationsAct,1949andtherulesmadethereunderandundertheprovisionsoftheMultiStateCooperativeSocietiesAct,2002andtherulesmadethereunderandwehavefulfilledourotherethicalresponsibilitiesinaccordancewiththeserequirementsandthecodeofethics.WebelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforouropinionontheFinancialStatements.

InformationOtherthantheFinancialStatementsandAuditor'sReportthereon.

4. TheBank’sBoardofDirectorsisresponsibleforthepreparationoftheotherinformation.TheotherinformationcomprisestheinformationincludedintheReportofBoardofDirectorsincludingotherexplanatoryinformation,butdoesnotincludethefinancialstatementsandourauditor’sreportthereon.

Ouropiniononthefinancialstatementsdoesnotcovertheotherinformationandwedonotexpressanyformofassurance conclusion thereon.

Inconnectionwithourauditof thefinancialstatements,ourresponsibility istoreadtheother informationand,indoingso,considerwhethertheotherinformationismateriallyinconsistentwiththefinancialstatementsorourknowledge obtained during the course of our audit or otherwise appears to be materially misstated.

WhenwereadtheReportofBoardofDirectorsincludingotherexplanatoryinformation,ifweconcludethatthereisamaterialmisstatementtherein,wearerequiredtocommunicatethemattertothosechargedwithgovernanceand the members in the Annual General Meeting.

47

ResponsibilitiesofManagementandThoseChargedwithGovernancefortheFinancialStatements.

5. TheBank’sBoardofDirectorsisresponsibleforpreparationofthesefinancialstatementsthatgiveatrueandfairviewofthefinancialposition,financialperformanceandcashflowsoftheBankinaccordancewiththeaccountingprinciplesgenerallyacceptedinIndia,includingtheAccountingStandardsissuedbyICAI,provisionsofBankingRegulationAct,1949andtherulesmadethereunder,provisionsofMultiStateCooperativeSocietiesAct,2002and the rules made there under and RBI from time to time and the accounting standards issued by ICAI. This responsibilityalsoincludesmaintenanceofadequateaccountingrecordsinaccordancewiththeprovisionsoftheActforsafeguardingoftheassetsoftheBankandforpreventinganddetectingfraudsandotherirregularities;selectionandapplicationofappropriateaccountingpolicies;makingjudgmentsandestimatesthatarereasonableandprudent;anddesign,implementationandmaintenanceofadequateinternalfinancialcontrols,thatwereoper-atingeffectivelyforensuringtheaccuracyandcompletenessoftheaccountingrecords,relevanttothepreparationandpresentationofthefinancialstatementsthatgiveatrueandfairviewandarefreefrommaterialmisstatement,whether due to fraud or error.

Inpreparingthefinancialstatements,managementisresponsibleforassessingtheBank’sabilitytocontinueasa going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Bank or to cease operations, or has no realistic alternativebuttodoso.

TheBoardofDirectorsisalsoresponsibleforoverseeingBank'sFinancialReportingprogress.

Auditor’sResponsibilitiesfortheAuditoftheFinancialStatements.

6. Ourobjectivesaretoobtainreasonableassuranceaboutwhetherthefinancialstatementsasawholearefreefrommaterialmisstatement,whetherduetofraudorerror,andtoissueanauditor’sreportthatincludesouropinion.Reasonableassuranceisahighlevelofassurance,butisnotaguaranteethatanauditconductedinaccordancewithStandardsonAuditingwillalwaysdetectamaterialmisstatementwhenitexists.Misstatementscanarisefromfraudorerrorandareconsideredmaterialif,individuallyorintheaggregate,theycouldreasonablybeexpectedtoinfluencetheeconomicdecisionsofuserstakenonthebasisofthesefinancialstatements.

AspartofanauditinaccordancewithStandardsonAuditing,weexerciseprofessionaljudgmentandmaintainprofessional skepticism throughout the audit. We also:

• Identifyandassesstherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror,designandperformauditproceduresresponsivetothoserisks,andobtainauditevidencethatissufficientandappropriatetoprovideabasisforouropinion.Theriskofnotdetectingamaterialmisstatementresultingfromfraudishigherthanforoneresultingfromerror,asfraudmayinvolvecollusion,forgery,intentionalomissions,misrepresentations,ortheoverrideofinternalcontrol.

• Obtain an understanding of internal control relevant to the audit in order to design procedures that are appropriate in the circumstances.

• Evaluatetheappropriatenessofaccountingpoliciesusedandthereasonablenessofaccountingestimatesandrelated disclosures made by management.

• Concludeontheappropriatenessofmanagement'suseofgoingconcernbasisofaccountingand,basedontheauditevidenceobtained,whetheramaterialuncertaintyexists related toeventsorconditions thatmaycast significantdoubton theBank'sability to continueasagoingconcern. Ifweconclude thatamaterial uncertaintyexists,wearerequiredtodrawattentioninourauditor'sreporttotherelateddisclosuresinthefinancial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the auditevidenceobtaineduptothedateofourauditor'sreport.However,futureeventsorconditionsmaycausethe Bank to cease to continue as a going concern.

• Evaluatetheoverallpresentation,structureandcontentofthefinancialstatements,includingthedisclosures,andwhetherthefinancialstatementsrepresenttheunderlyingtransactionsandeventsinamannerthatachievesfair presentation.

48

Wecommunicatewiththosechargedwithgovernanceregarding,amongothermatters,theplannedscopeandtimingoftheauditandsignificantauditfindings,includinganysignificantdeficienciesininternalcontrolthatweidentify during our audit.

Wealsoprovidethosechargedwithgovernancewithastatement thatwehavecompliedwithrelevantethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

Report on Other Legal and Regulatory Requirements.

7. TheBalanceSheetandtheProfitandLossAccounthavebeendrawnupinFormsAandBrespectivelyoftheThirdScheduletotheBankingRegulationAct,1949andtheMultiStateCo-operativeSocietiesAct,2002,theMultiStateCo-operativeSocietiesRules,2002.

8. AsrequiredbySection73(4)oftheMultiStateCo-operativeSocietiesAct,2002,wereportthat:

a. Wehaveobtainedalltheinformationandexplanations,whichtothebestofourknowledgeandbeliefwerenecessaryforthepurposeofourauditandhavefoundtobesatisfactory;

b. Inouropinion,properbooksofaccountasrequiredbylawhavebeenkeptbytheBanksofarasitappearsfromourexaminationofthosebooksandproperreturnsadequateforthepurposesofouraudithavebeenreceivedfromthebranches/offices;

c. AsrequiredbySection30(3)oftheBankingRegulationAct,1949,wefurtherreportthatthetransactionsoftheBankwhichcametoournoticehavebeenwithinthepowersoftheBank.

d. TheBalanceSheet,theProfitandLossAccountandtheCashFlowStatementdealtwithbythisreport,areinagreementwiththebooksofaccountandthereturns;

e. TheConcurrentauditreportsontheaccountsofthebranchesauditedbybranchauditorshavebeenforwardedtousandhavebeenproperlydealtwithbyusinpreparingthisReport.

f. The accounting standards adopted by the Bank are consistent with those laid down by accounting principles generallyacceptedinIndiasofarasapplicabletoBanks;

9. Aspertheinformationandexplanationsgiventousandbasedonourexaminationofthebooksofaccountandotherrecord,wereportasunderonthemattersspecifiedinclause(d)to(e)ofRule27(2)oftheMultiStateCo-operativeSocietiesRules,2002.

a. Inouropinionandaccordingtoinformationandexplanationsgiventous,wehavenotnoticedanymaterialimproprietyorirregularityintheexpenditureorintherealizationofmoneyduetothebankonourtestcheckverification.

b. Inouropinionandaccordingtoinformationandexplanationsgiventous,theguidelinesissuedbytheReserveBankof Indiahavegenerallybeenadheredto.SincetheBankhasneitheraccepteddepositsnorreceivedsubsidy fromNationalBank forAgricultureandRuralDevelopment,ourcomments regardingadherenceofguidelines issued by the said Bank are not called for.

10. AsrequiredbyRule27(3)(a)to(f)oftheMultiStateCo-operativeSocietiesRules,2002wegiveintheannexure,ascheduleonthemattersspecifiedinthesaidRule.

ForM/sYARDIPRABHU&ASSOCIATESLLPCHARTEREDACCOUNTANTS

FRN:111727W/100101W

(S. D. yARDI)PLACE:MUMBAI PARTNERDATED : 31.08.2019 M. nO. 22887

49

ANNEXURE TO INDEPENDENT AUDITOR’S REPORTFOR THE yEAR EnDED 31STMARCH,2019

(AsreferredinClause10ofourreportofevendateason31stMarch,2019).

AsrequiredbytheRule27(3)oftheMulti-StateCo-operativeRules,2002,wereportonthemattersspecifiedinclauses(a)to(f)ofthesaidRuletotheextentapplicabletotheBank.

a. Duringthecourseofouraudit,wehavegenerallynotcomeacrosstransactionswhichappeartobecontrarytotheprovisionsoftheAct,theRulesortheBye-LawsoftheBank.

b. Duringthecourseofouraudit,wehavenotcomeacrossmaterialandsignificanttransactionswhichappeartobecontrarytotheguidelinesissuedbytheReserveBankofIndiaonourtestcheckverification.SincetheBankhasneitheraccepteddepositsnorreceivedsubsidyfromNationalBankforAgricultureandRuralDevelopment,our comments regarding transactions contrary to the guidelines issued by the said Bank are not called for.

c. ThefollowingadvancesarecategorizedasdoubtfulorlossassetsasperprudentialnormsofRBIason31.03.2019andreportedintermsofclause(c)ofRule27(3)oftheMultiStateCo-operativeSocietiesRules,2002:

Category AmountOutstanding as on 31.03.19 (Rs. in lacs)DoubtfulAssets 1024.98LossAssets 553.38Total 1578.36

* A provision of Rs. 1402.12 Lakhs has been made against the above advances.

d. Aspertheinformationprovidedtousandtothebestofourknowledge,thefollowingcreditfacilitieshavebeensanctionedbytheBanktothemembersoftheBoardortheirrelatives:

Particulars Amountoutstanding SecurityValue Overdues,ifany

FundBased NIL NIL NIL

NonFundBased NIL NIL NIL

e. Duringthecourseofouraudit,wehavegenerallynotcomeacrossanyviolationsofguidelines,conditionsetc.issuedbytheReserveBankofIndia.SincetheBankhasneitheraccepteddepositsnorreceivedsubsidyfromNationalBankforAgricultureandRuralDevelopment,ourcommentsregardingviolationsofguidelinesissuedbythe said Bank are not called for.

f. Tothebestofourknowledge,noothermattershavebeenspecifiedbyTheCentralRegistrarofCo-operativeSocieties, which require reporting under this Rule.

ForYARDIPRABHU&ASSOCIATESLLPCHARTEREDACCOUNTANTS FRN:NO.111727W/100101W

(S.D.yARDI)PLACE:MUMBAI PARTNERDATED : 31.08.2019 M. nO. 22887

50

AMENDMENT TO THE BANK’S BYE LAWS Sr. Byelaw PresentBye-laws TextofBye-laws Reasonfor no. no. After Amendment Amendment

1. 1 nAME AnD AREA OF 1 nAME AnD AREA OF OPERATIOn : ToamendthetextofBye (iv) OPERATIOn : Laws due to bifurcation of Theareaofoperationofthe TheareaofoperationoftheBankshallbeextended theStatebythe Bankshallbeextendedto toGreaterMumbai,Thane,Raigad,Ratnagiriand GovernmentofIndia. Greater Mumbai, Thane, Sindhudurg Dist. Miraj, Pune, Kolhapur in Raigad, Ratnagiri and Maharashtra State, Panjim in Goa, Hyderabad in Sindhudurg Dist. Miraj, Telangana, Bangalore, Belgaum in Karnataka, Pune, Kolhapur in State and Surat in Gujarat. Maharashtra State, Panjim in Goa, Hyderabad in Andhra Pradesh, Bangalore, Belgaum in Karnataka, State and Surat in Gujarat.

2. 2(x) DEFInATIOnS : 2 DEFInATIOnS : To bring more clarity “ChiefExecutive”means (x)“ChiefExecutive”meanstheOfficerappointed and create different the General Manager of the bytheBoardofDirectorsastheChiefExecutive executive post in the Bank OfficerwhoisAdministrativeHeadoftheBank. organization.

3. 4(A) RAISInG OF FUnDS : 4(A) RAISInG OF FUnDS : Therearevariousavenues (ix) {New Clause is proposed to (ix)Long Term Deposits (LTD) with the permission to raise funds. The new be inserted} of RBI. clause is proposed to be insertedwiththeviewto increase capital of the Bank to meet CRAR as and when required.

4. 10 APPLICATIONFOR 10APPLICATIONFORMEMBERSHIPANDITS Tobringexistingordinary (iii) MEMBERSHIP AnD ITS DISPOSAL : members on par with new DISPOSAL : All existing ordinary members of the Bank members as prescribed {New Clause is proposed holding less than 40 (Forty) share shall at least undersection9(b)ofthe to be inserted} subscribe to such additional number of shares bye laws. as may be necessary to make up the required minimum number of 40 (Forty) shares within six months from the date of coming into force of this amendedBye-law.Thememberswhoareholding less than 40 shares even after expiry of six months shall not be entitled to exercise their rights as members of the bank untill the minimum required shares are subscribed.

51

Sr. Byelaw PresentBye-laws TextofBye-laws Reasonfor no. no. After Amendment Amendment

5. 34(A) {New Clause is proposed 34(A)ELIGIBILITYFORELECTIONASDIRECTOR To make eligibility to contest to be inserted} A Ordinary Member shall be eligible to be elected as election of Board of Director if :- Directors more clear and a)HeisamemberoftheBankatleasttwentyfour transparent. (24)monthspriortothedateofelection; b)Heisnotguarantortothedefaulterborrowerof theBank; c) HeshouldnotbedefaultertoanyCo-operative Society registered under Multi State Co-op SocietiesAct2002oranyCo-operativeSociety registeredunderanyStateAct; d) HeheldsharesofatleastRs.10,000/-and (lienfree)DepositofatleastRs.100,000/-atleast twelve(12)monthspriortothedateofelection; ProvidedthattheelectedDirectorsshallkeepthe abovedepositsfortheentiretenureoftheBoard; e) Thepersonscontestingfromreserveseats (SC/STandwomencandidates)shallcomplywith 50%ofthecriteriarequiredforgeneralcategory asmentionedinclause34A(d);

6. 35(2) POWERS AnD 35(2)POWERSANDFUNCTIONSOFTHE The powers of board of FUNCTIONSOFTHE BOARDOFDIRECTORS: directors are proposed to be BOARDOFDIRECTORS: n) Tofillanyvacancy/vacanciesintheBoardbythe extendedtobringmore {New Clause is proposed proceduredefinedintheByeLaw; clarityinworkingand to be inserted} o) Toapprovethepanelofauditorsforplacinginthe functioningofboardof GeneralBody; directors. p) Toappointtheauditorsandfixtheirremuneration Earlierthepowersand asperthedecisionofthegeneralbody; functionsarespecifiedin q) ToappointsuchCommittees,Sub-Committees clause(a)to(m). asmaybenecessaryanddelegatetothemsuch Newpowers/functions powersasmaybeappropriate; addedfromclause(n)to r) Toframeregulationsfortheelectionofdelegates (mm). to the General Body, Members to the Board of Directors and for the conduct of Meetings of the General Body and the Board of Directors as per theprovisionsoftheAct; s) To enter into participation and consortium arrangements with any Commercial or Co-operativeBankandFinancialCorporationfor thepurposesofgrantingloansandadvancesand to determine the terms and conditions of participation/consortium;

52

t) Tofixtheratesofinterestonloansandadvances anddepositsasperdirectionsoftheReserve BankofIndiaissuedfromtimetotime; u) To consider the settlement proposals, to modify, alter, delete and add to the terms and conditions governingtheoutstandingloans,overdrafts,cash creditsandadvancesfromconstituents; v) To allow a remission or rebate of interest on loans andothercosts/expenses; w) ToconsiderandapprovetheOTS/Compromise settlement scheme for borrowers within framework ofRBIguidelinesissuedfromtimetotime,ifany; x) ToConsiderandapprovewriteoffproposalsof bad&doubtfuldebtsasperthepolicyprepared by the board y) Toapproveappointmentofbrokers,agents, experts,consultants,advocate(s)andenquiry officersandanyotherpersonneloragencyora firmandtofixtheirremuneration; z) Toapprovepurchase,saleand/orpledgeofGovt. andTrusteesecuritiesandotherapproved securities on behalf of the bank and to delegate, jointlytoanytwooftheDirectorsand/orChief ExecutiveOfficerand/orotherofficerseithersingly or jointly, powers for the purpose of purchase, saleand/orpledge,asthecasemaybe,ofsuch securities; aa) To consider proposals for opening branches, Extensioncounters,payofficesandATMCenters; bb) To institute, defend, conduct, compromise, abandon or withdraw any Legal proceedings including criminal proceeding by or against the BankortheBoardoritsOfficersoremployees andtodelegatethosepowersandauthorizetothe ChiefExecutiveOfficerandoranyotherOfficer oftheBankinthisbehalf; cc) To refer to the Central Registrar or any other duly appointed authority any claims, disputes or demandsbyoragainstthebankoritsofficersor employeesforarbitration; dd) TodelegatepowersandauthorizetheChief ExecutiveOfficerand/oranyotherStaff/Officerof the Bank to open and operate Bank accounts or depositaccountswithanyBankorfinancial institutionandtoauthorizetheofficersofthe Banktodealwiththesame;


53

ee) To delegate powers to the Chairman, Chief Executiveortoanyotherofficer(s)oftheBankin respectofsanctionofloansandadvances,capital &revenueexpenditureandtoauthorizethemto represent the Bank in legal proceedings and other matters within the powers delegated by Board of Directorsfromtimetotimeinviewofoperational convenience; ff) To consider cases of arrears and defaults in loans andadvancesduefrommembersandtake/ approveactiontobetakenforrecoveryofthe sameincludingcompromisesettlements; gg) To make, alter, rescind or abrogate the rules from time to time regarding the following by remaining compliantwiththeguidelinesofRBI& Co-operativeDepartment: i) Depositsofalltypes; ii) Loans,advances,investmentsandotherbanking business; iii) TravelingallowancestoDirectorsandsalaried staff; iv) ProvidentFund,BonusandGratuity; v) Recruitmentofthestaff; vi) ServiceconditionsoftheStaff. hh) Torecommenddistributionofprofittothe GeneralBody; ii) Boardofdirectorsareauthorizedtoconsider, scrutinize,appraise,evaluateandacceptany proposal for merger and acquisition of any other bank on suitable terms and conditions and seek approvalforthesamefromReserveBankofIndia, theRegistrarofcooperativesocietiesofthe respectiveStateandtheCentralRegistrarof Co-operativeSocieties,NewDelhiandthereafter put the merger issued by the competent authority intoimplementation; jj) Toacquireordisposeofimmovablepropertyon such terms and conditions as may be decided fromtimetotime; kk) Tosecuremembershipoforaffiliationto appropriateinstitutions; ll) Tonominaterepresentative/softhebankon managing committee of any trust, institution, organizationorsociety,onthemanagementofa debtorfirmoronthemanagementorboardof Debtor Company or at general meetings of cooperativeorotherinstitutions;


54

mm) To perform all acts connected with the administration of the bank and to undertake all activitiesandbusinessinfurtheranceoftheaims andobjectsofthebank;

7. 45 CHIEFEXECUTIVE: 45CHIEFEXECUTIVE: To bring more clarity to the GeneralManageriscalled TheChiefExecutiveOfficershallbeappointedby byelaw. theChiefExecutiveofthe theBoardofDirectors.Heshallbeafulltime bank and he shall be employee of the Bank and he shall aid and assist appointed by the Board of the Board of Directors in their functions. Directors.Heshallbea TheChiefExecutiveshallalsobetheex-officio full time employee of the member of the Board of Directors. Bank and he shall aid and assist the Board of Directors in their functions. The Chief Executiveshallalsobethe ex-officiomemberofthe Board of Directors.

8. 46 POWERS AnD 46POWERSANDFUNCTIONSOFTHECHIEF The heading of the bye law FUNCTIONSOFTHE EXECUTIVEOFFICER: provisionischangedto GEnERAL MAnAGER: make it consistent with definitionofChiefExecutive Officer.

9. 46 POWERS AnD 46POWERSANDFUNCTIONSOFTHECHIEF The powers of Chief FUNCTIONSOFTHE EXECUTIVEOFFICER: ExecutiveOfficerare GEnERAL MAnAGER : l. TodelegatepowerstootherOfficers/Staffofthe proposedtobeextendedto {New Clauses are proposed Bank; bringmoreclarityinhis to be inserted} m.Tosanctionandincurexpenditureinsofarasthe workingandfunctioning amountinvolvedisuptoalimitsetbyBoardof Earlierthepowersand Directors/Sub-Committeesofboardfromtime functionsarespecifiedin totime; clause(a)to(k).New n. TosignonbehalfoftheBankandconductits powers/functionsadded correspondence; fromclause(l)to(t). o. Topresentthedraftannualreportandfinancial statementsfortheapprovaloftheBoard; p. TorecordproceedingsofMeetingandhaveduly signed; q. Toreceiveapplication(s)forloansandadvances and to place the same for consideration before theBoardofDirectors/Sub-Committeetogether


55

withadetailedreportcontaininghisspecific comments/recommendations; r. To sanction credit facilities up to such limits and upon such terms and conditions and safeguards, astheBoardmaydecideandtoexercisesuch other powers and discharge duties as may be delegatedtohimbytheBoard,havingregardto the policies laid down in pursuance of guidelines ordirectivesissuedbyReserveBankofIndiaor any other competent authority, on loans and advances,fromtimetotime.Heshallthereafter place a statement of such credit facilities sanctioned before the meeting of the Board of Directorsasearlyaspossible; s. To perform all duties entrusted to him and to exercisesuchotherpowersasmaybedelegated tohimbytheBoardofDirectors,Executive Committee, Sub Committee or Chairman from timetotime; t. To take action on the resolutions and decisions takenbytheGeneralBody&BoardofDirectors &SubCommitteesofBoardofDirectors;

10. 49 LInKInG OF 49 LInKInG OF SHAREHOLDInG WITH LOAn SHAREHOLDInG WITH LIMITS : LOAn LIMITS : (a) Aborrowershouldhold (a) Aborrowershouldholdsharesatleast5percent Nochangeinclause(a) shares at least 5 per cent of his borrowings and such borrowings are on an of his borrowings and such unsecured basis i.e. in the form of clean borrowingsareonan overdraftloansagainstoneortwopersonal unsecured basis i.e. in the sureties and purchase discount of clean bills formofcleanoverdraft andcheques. loans against one or two personal sureties and purchase discount of clean bills and cheques. (b) Aborroweragainsttangible (b) Aborroweragainsttangiblesecuritiesshould Nochangeinclause(b) securitiesshouldhold holdsharesofthebanktotheextentatleast shares of the bank to the 2 ½ percent of his borrowings from the Bank. extentatleast2½percent of his borrowings from the Bank. (c) Inthecaseofloansfor (c) Inthecaseofloansforsmall-scaleindividual Nochangeinclause(c) small-scaleindividualunits, units,thelinkingofsharecapitalmightbefixed the linking of share capital initially at one percent of the borrowings to be


56


mightbefixedinitiallyat raisedinthecourseofthenexttwoyearsto one percent of the 2 ½ percent. borrowings to be raised in thecourseofthenexttwo years to 2 ½ percent. (d) HoweverlinkingofShare (d) HoweverlinkingofShareholdingwithloanlimits Nochangeinclause(d) holdingwithloanlimits shallbeasperdirectivesissuedbytheReserve shallbeasperdirectives BankofIndiafromtimetotime. issuedbytheReserve Bank of India from time to time. (e) {New Clause is proposed (e) ProvidedthatasperRBIguidelines,ifthe Tomakeprovisionin to be inserted} CapitalAdequacyRatio(CRAR)asperaudited consistentwithRBI financialofimmediatelyprecedingyearis12% guidelinesinPara3of or more or as prescribed by RBI in this regard circular No. DCBR.BPD. fromtimetotime,thenBankneednottoobtain (PCB).MC.No.10/09.18. linkingsharesattherateof5%or2.5%as 201/2015-16dated mentionedinclause(a),(b)or(c)above. 1.7.2015

11. 50 DISPOSAL OF nET 50 DISPOSAL OF nET PROFIT : Toaddthetext“oras (c) PROFIT : (c)Donationforthedevelopmentofthe specifiedbyReserveBank Donationforthe co-operativemovementorcharitablepurpose ofIndiafromtimetotime.” developmentofthe asdefinedinsection2oftheCharitable soastocomplywithRBI co-operativemovementor EndowmentAct,1890notexceeding5%or as circularUBD(PCB)./BPD/ charitable purpose as specifiedbyReserveBankofIndiafromtime Cir.43/09.72.00/2004-05 definedinsection2ofthe to time. dated 11.4.2005. Charitable Endowment Act, 1890notexceeding5%.

12. 51 INVESTMENTOFFUNDS: 51INVESTMENTOFFUNDS: TheBankmayinvestor TheBankmayinvestordeposititsfundsin: deposit its funds in : a) Scheduledco-operative a) Scheduledco-operativebanksStateorCentral Nochangeinclausesfrom banksStateorCentral CooperativeBankincludingCooperativeLand (a)to(d) CooperativeBank DevelopmentBank; includingCooperative LandDevelopmentBank; b) Securitiesspecifiedin b)Securitiesspecifiedinsection20oftheIndian Theclauses(e)to(k) section20oftheIndian rustAct,1882. insertedtomakeavailable rustAct,1882. moreavenuestobankfor c) sharesandsecuritiesof c) sharesandsecuritiesofanyotherco-operative investingsurplusfunds. anyotherco-operative banks/subsidiaryinstitutions banks/subsidiary institutions

57


d) Anyotherscheduled d) Anyotherscheduledbank/nationalizedbank. bank/nationalizedbank. {New Clauses are to be e) StateorCentralCooperativeBankincluding proposed to be inserted CooperativeLandDevelopmentBank; after (d)} f) CentralandStateGovt.securities; g) StateBankofIndia; h) PublicSectorBanks; i) PrivateSectorBanks. j) SmallFinanceBanks. k) AnyothermodedulyapprovedbytheBoardof Directors in conformity with guidelines issued by ReserveBankofIndiafromtimetotime.

13. 64 UTILIZATIONOFSPECIAL/ 64UTILIZATIONOFSPECIAL/GENERAL GENERALRESERVES/ RESERVES/UNFORESEENCONTINGENCY UnFORESEEn RESERVE: CONTINGENCY Noamountshallbedrawnfromordebitedtothe Togiveclarityonutilization RESERVE: Reservescreatedunlesssuchamountisnecessary ofReserveFund. To add the new clause tobeutilizedforthepurposeforwhichthese Reserveswas/werecreated,providedthatthe Boardmaywriteoffabaddebtagainstthereserve of Bad and Doubtful Debts or against current revenue.InsuchacasetheBoardshallshowthe amountsowrittenoffeitherintheAnnualStatement of Accounts or by a separate note in the Annual Report,asthecasemaybe.Providedfurtherthaton the Recommendations of the Board , General Body may sanction transfer of an amount from one kind ofReservetoanotherkindwhereBoardconsiders suchtransfertobeadvisableandintheinterestof the Bank.

58

PROGRESSATAGLANCE (AmountinLakhs)

Sr. Year Share Members Working Reserve Deposits AdvancesProfit Dividend No. No. No. Capital Capital & Paid of of Surplus Gross Net Rate Branches Staff

01 1969-70 0.39 375 0.39 0.04 Nil 0.36 0.01 0.00 Nil 1 NA

02 1974-75 5.15 2842 20.11 0.31 13.94 12.46 1.69 0.35 6% 1 NA

03 1979-80 19.73 7621 283.13 6.48 246.45 121.63 24.84 3.60 10% 3 NA

04 1984-85 76.23 22223 1639.51 69.09 1412.34 882.89 183.27 35.82 12% 6 NA

05 1989-90 164.37 33790 5081.06 332.99 4344.37 2907.84 566.18 95.94 12% 9 NA

06 1994-95 225.88 36184 9613.78 858.79 8099.42 4187.83 501.57 28.39 8.50% 10 386

07 1999-2000 383.36 41955 18035.24 1994.16 15207.03 7408.43 1239.21 -284.74 Nil 21 473

08 2000-01 416.20 42572 18483.05 2233.18 15153.66 8273.98 330.18 138.58 Nil 21 471

09 2001-02 453.05 43305 18660.76 2426.15 15411.43 9537.12 268.74 172.18 5% 21 464

10 2002-03 463.78 43617 19963.61 2519.17 16591.05 9279.13 143.18 29.16 4% 21 455

11 2003-04 492.94 43662 22018.37 2716.70 18414.75 10237.63 313.24 62.89 9% 21 439

12 2004-05 543.96 43707 23254.75 2627.63 19331.95 12449.35 277.05 73.62 9% 21 369

13 2005-06 559.02 43784 28202.29 3964.36 23249.48 12648.16 293.68 76.86 9% 21 355

14 2006-07 617.51 45007 31767.00 4539.28 25966.59 16245.73 281.13 71.75 6% 21 346

15 2007-08 693.97 44731 35935.95 4397.54 29170.43 18627.60 323.91 101.05 10% 21 337

16 2008-09 730.22 44803 39047.38 4599.19 31707.30 20962.63 397.02 171.85 12% 21 319

17 2009-10 751.44 44864 42135.60 4841.78 34662.18 19679.62 322.38 142.90 8% 23 316

18 2010-11 770.67 44926 46963.47 4987.70 38923.13 21161.02 356.95 82.19 7% 25 305

19 2011-12 870.01 49257 51129.85 5310.88 41025.43 27877.42 477.65 227.43 10% 25 295

20 2012-13 907.79 49389 53537.83 5958.98 42243.68 28842.17 507.96 262.03 12% 25 286

21 2013-14 955.64 49520 57472.35 6330.74 47943.51 27724.06 664.80 415.01 12% 25 281

22 2014-15 1076.55 49688 58735.93 7124.22 48861.21 28454.27 794.39 160.99 9% 25 276

23 2015-16 1143.90 49584 63767.36 10314.25 50698.50 28756.83 1073.54 160.52 10% 25 267

24 2016-17 1280.84 49881 71051.64 10874.67 56608.18 31269.48 1620.43 475.67 10% 25 248

25 2017-18 1479.82 50527 70008.28 10595.57 54306.62 36716.50 1368.44 695.79 10% 25 233

26 2018-19 1621.25 51333 74765.55 10739.64 59146.83 40602.31 1431.67 730.43 10% 25 266 proposed

59

PROJECTEDINCOME&EXPENDITUREFORTHEYEAR2019-20

31.3.2019 Budgeted (31.03.2020) Projected Actual Projected

Deposits 61045 59146.83 70000.00

Advances 42107 40602.31 48000.00

net nPA% 0.00% 0.74% 0.00%

Projected 2018-19

(2019-20) Projected Actual

A INCOME

Interest on Loan & Advances 5520.00 4700.00 5050.24

Interest & Income on Investments 1550.00 1535.20 1408.51

Commission,Brokerage&Others 850.00 870.00 705.57

(Total Income = A) 7920.00 7105.00 7164.32

B ExPEnDITURE

Interest on Deposits & Borrowing 3322.00 3100 2864.95

Salaries & Allowances 1550.00 1400.00 1520.60

Directors Fees 18.00 18.00 15.24

Rent, Insurance, Lighting & Taxes 260.00 220.00 185.98

LawCharges 10.00 12.00 9.26

Postage, Telegram & Telephone 75.00 70.00 63.89

Audit Fees (Statutory & Internal) 30.00 33.00 29.33

Depreciation 150.00 100.00 132.35

Stationery, Printing & Advertising 85.00 72.00 64.68

A.G.M. Expenses 30.00 10.00 16.94

Other Exp. & Premium Amortised 1090.00 800.00 918.37

Provisions & Write Off 275.00 300.00 317.36

Income Tax 325.00 320.00 294.95

(Total Expenses = B) 7220.00 6455.00 6433.90

Less: (Total Income = A) 7920.00 7105.20 7164.32

NetProft(A-B) 700.00 650.20 730.42

(Rs.inlacs)

60

Registered Office Harbour Crest, Mazagaon T. T., Mumbai 400 010 Board Lines : 2372 3753, 2372 9969, 2372 9970, 2372 9971, 2373 4202, 2373 4311 Fax : 2374 8589 l E-mail : [email protected] Website : www.kokanbank.net

Sr. Branch Name Address Customer Telephone No. IFS Code Timing & Email

1 Central Office 202, Battiwala Bldg, 10.30 am - Phone : 2372 4062 KKBK0KMCB02 Branch Dr. Mascarhanes Road, 1.00 pm 2375 0205 Mumbai 400 010. 2378 0723 1.45 pm - Email : 4.45 pm [email protected]

2 Mandvi Branch 129/131, Shariff Devji 10.30 am - Phone : 2345 1937 KKBK0KMCB03 Street, Chakala, 1.00 pm 2347 3707 Opp. Pattharwali Masjid, Mumbai 400 003. 1.45 pm - Email : 4.45 pm [email protected]

3 Mazagaon 1/2, Dawoodi Mansion, 10.00 am - Phone : 2371 4912 KKBK0KMCB04 Branch Reay CHS. Ltd, Barr. 1.00 pm 2373 1770 N. P. Road, 2377 5636 Mumbai 400 010. 1.45 pm - Email : 4.15 pm [email protected]

4 Govandi Branch Kokan Bank House, 9.00 am - Phone : 2555 8637 KKBK0KMCB06 Gajanan Colony, 1.00 pm 2555 0804 Govandi, Mumbai 400 043. 3.00 pm - Email : 5.00 pm [email protected]

5 Jogeshwari 7-8, Shakuntala 10.15 am - Phone : 2677 0048 KKBK0KMCB11 Branch Apartment, 1.00 pm 2677 0701 Ground Floor, S. V. Road, Jogeshwari (W) 1.45 pm - Email : Mumbai 400 102. 4.30 pm [email protected]

6 Kurla Branch 104/105, Sunny Co-op. 10.00 am - Phone : 2650 4441 KKBK0KMCB05 Housing Society, 1.00 pm Belgrami Naka, 156, L. B. S. Marg, 1.45 pm - Email : Kurla (West), 4.15 pm [email protected] Mumbai 400 070.

61

7 Kalyan Branch Kokan Bank House, 10.15 am - Phone : (0251) 2211242 KKBK0KMCB07 Dudh Naka, Kalyan, 1.00 pm 2209804, 2202000 Dist. Thane 421 301. 1.45 pm - Email : 4.30 pm [email protected]

8 Kausa Mumbra Alavi Apartment, 10.15 am - Phone : 2535 1875 KKBK0KMCB10 Branch Ground Floor, Plot 31/B, 1.00 pm 2549 1431 Old Mumbai Pune Road, Behind Hotel Sahil, 1.45 pm - Email : Kausa Mumbra, 4.30 pm kausamumbrab@ Dist. Thane 400 612. kokanbank.in

9 Mira Road 102, Saeeda Apts, 10.15 am - Phone : 2812 0497 KKBK0KMCB09 Branch ‘B’ Wing, 1st Floor, 1.00 pm 2813 1200 Near Breez Apt., 2812 6742 Naya Nagar, 1.45 pm - Mira Road (E), 4.30 pm Email : Dist. Thane 401 107. [email protected]

10 Thane Bape Tower, 1st Floor, 10.15 am - Phone : 2534 9329 KKBK0KMCB08 (Rabodi-II) Opp. Masjid–e–Noor, 1.00 pm 2538 2126 Branch IInd Rabodi, Dist. Thane 400 601. 1.45 pm - Email : 4.30 pm [email protected]

11 Nerul Shiv Parvati Co-op. Hsg. 9.00 am - Phone : 2771 7687 KKBK0KMCB15 Branch Society Ltd., Sector 21, 1.00 pm Plot No.106–110, Nerul (E), 1.45 pm - Email : Navi Mumbai 400 706. 3.15 pm [email protected]

12 Vashi Branch Rainbow Flat & Shop 10.00 am - Phone : 2789 7577 KKBK0KMCB12 Owners Association, 1.00 pm 2788 1047 F-7, B-1, Sector 10, 2788 1056 Vashi, 1.45 pm - Email : Navi Mumbai 400 703. 4.15 pm [email protected]

Sr. Branch Name Address Customer Tel. No. IFS Code

62

13 Mhasla Branch Ghansar Commercial 10.30 am - Phone : (2149) 233677 KKBK0KMCB54 Complex, Main Road, 1.00 pm Near S.T. Stand, Mhasla, At Post & Tal. Mhasla, 1.45 pm - Email : Dist. Raigad 402 105. 4.45 pm [email protected]

14 Dapoli Branch Shop No. 2, 10.30 am - Phone : (02358) 280492 KKBK0KMCB66 Dimtimkar Complex, 1.00 pm Behind Dapoli Fish Market, 1.45 pm - Email : Dapoli Mandangad Rd, 4.45 pm [email protected] Dapoli, Dist. Ratnagiri 415 712.

15 Khopoli Branch Mid Town Arcade, 10.30 am - Phone : (02192) 262111 KKBK0KMCB13 M. G. Road, Bazar Peth, 4.00 pm 268789 Khopoli, Tal. Khalapur, Email : Dist. Raigad 410 203. [email protected]

16 Murud Janjira House # 17/83, 10.30 am - Phone : (02144) 274 801 KKBK0KMCB52 Branch Sardar Patel Road, 1.00 pm Murud Janjira, Dist. Raigad 402 401. 1.45 pm - Email : 4.45 pm [email protected]

17 Nagothane 106, Bazar Peth 10.30 am - Phone : (02194) 222383 KKBK0KMCB51 Branch Nagothane, Tal. Roha, 1.00 pm Dist. Raigad 402 106 1.45 pm - Email : 4.45 pm [email protected]

18 Panvel Branch Gala # 143, 9.30 am - Phone : 2745 8881 KKBK0KMCB14 Building # 1&2, 1.00 pm Panvel Nagar Parishad Shop-ping Centre, 1.45 pm - Email : Near Panvel Tehsildar 3.45 pm [email protected] Office, Panvel, Dist. Raigad.


63


19 Shriwardhan “Sahil” Mogal Mohalla, 10.30 am - Phone : (02147) 222105 KKBK0KMCB53 Branch Shriwardhan, 1.00 pm Dist. Raigad 416 702. 1.45 pm - Email : 4.45 pm [email protected]

20 Chiplun Branch 1st Floor, 10.30 am - Phone : (02355) 260742 KKBK0KMCB62 Mahalaxmi Building, 1.00 pm 261266 Mandvekar Complex, Bazar Peth, Chiplun, 1.45 pm - Email : Dist. Ratnagiri 415 605 4.45 pm [email protected]

21 Khed Branch M/H, 96/18, 10.30 am - Phone : (02356) 263313 KKBK0KMCB63 Mahadik Mohalla, 1.00 pm 264361, 263423 Pawaskar Naka, Khed, Dist. Ratnagiri 415 709 1.45 pm - Email : 4.45 pm [email protected]

22 Rajapur Branch Chogule Building, 10.00 am - Phone : (02353) 222239 KKBK0KMCB65 Shop No. 2, Bazar Peth, 1.00 pm Opp. Rajapur Nagar Parishad, Rajapur, 1.45 pm - Email : Dist. Ratnagiri 416 702 4.15 pm [email protected]

23 Ratnagiri Silver Plaza, ‘A’ Wing, 10.30 am - Phone : (02352) 222540 KKBK0KMCB61 Branch Ground Floor, 1.00 pm 222053, 226278 Dhanji Naka, Ratnagiri 415 612. 1.45 pm - Email : 4.45 pm [email protected]

24 Sangmeshwar 35/B, Shradha Niwas, 10.00 am - Phone : (02354) 273731 KKBK0KMCB64 Branch Bazar Peth, 1.00 pm Sangmeshwar, Dist. Ratnagiri 415 611 1.45 pm - Email : 4.15 pm [email protected]

25 Panjim (Goa) 1st Floor, 10.00 am - Phone : (0832) 2230880 KKBK0KMCB71 Branch El-Dorado Plaza, 1.00 pm Helidoro Salgado Road, Panjim (Goa) 1.45 pm - Email : 4.15 pm [email protected]

64

InTEREST RATE OF DEPOSITSwith effect from 1st January, 2019

Sr. Period Interest Rate Rate for No. SeniorCitizens, RegisteredCo.op. Societies & Trusts

1 7daysto29days 5.00% 5.50%

2 30daysto90days 6.00% 6.50%

3 91daysto180days 7.00% 7.50%

4 181daysto12months 7.50% 8.00%

5 Above12monthsupto24months 8.00% 8.50%

6 Above24monthsupto60months 8.25% 8.75%

7 Above5years 8.00% 8.50%

[email protected]%p.a.GOLDENJUBILEEDEPOSITSSCHEME:8.50%for18monthsFixedDeposit.

nRE DEPOSITSINTERESTSONNRE(TERM)RUPEEA/C

Sr. no. Particulars Rate of Interest 1. 12monthsupto24months 8.00%p.a. 2. Above24monthsupto36months 8.25%p.a. 3. Above36monthsupto60months 8.50%p.a. 4. Above60months 8.00%p.a.

[email protected]%p.a.MULTIPLE DEPOSIT

Sr. no. Multiple Deposit Period Amount

1. GeneralPublic 105months Rs.1,345/-

2. SeniorCitizen 99months Rs.1,330/-

LAKHPATI DEPOSIT Sr. no. Period Monthly Deposit Monthly Deposit Amount on (GeneralPublic) (SeniorCitizensRegistered Maturity Co-op.Societies&Trusts 1. 12months Rs.8,003/- Rs.7,983/-

2. 24months Rs.3,833/- Rs.3,813/-

3. 36months Rs.2,444/- Rs.2,424/- RUPEES OnE

4. 48months Rs.1,756/- Rs.1,737/- LAKH 5. 60months Rs.1,345/- Rs.1,327/-

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