KAVERI GRAMEENA BANK ra See nee area) See —_ rim URS 31.03.2014 31.03.2013 TASTES apa er area Sree ee ee aoe a oo eee ae oe eee a eee — ! a {= TD es | Sa eae — — Ae eee [Advances ° "3680,64,27,355.41) '2970,53,98,114.87) ee SS ee = 2} ee ee om ae aes 2 ee [Bills for collection | 9,69,69,277.00| 21,86,05,852.56} af ben CD etry eae ter — eee (wees ce eo — fs oa en ws sre Deter ao-oF-2n4KAVERI GRAMEENA BANK HEAD OFFICE: MYSORE FORM-B (CONSOLIDATED PROFIT & LOSS ACCOUNT FOR THE PERIOD FROM 01.04.2013 T0 31.03.2014 Corum nuoees) — iearasisetns area aco I. INCOME - = __Interest earned Tas. __ 483,13,28,853.39| 403,65,41,025.59| |_Other Income _ 14 54,57,75,350.17| 38,43,89,392.38] TOTAL 537,71,04,203.56| 442,09,30,417 [Ir EXPENDITURE ~ Pe a ee Operating expenses & Provisions & contingencies 36 149,67,02,660. 138,88,08,495.76} i= TOTAL ~477,44,59,308.90| _403,57,6578.61| Ea waerri eS ee ae ea SE aaa ae ee ea zeae Pe rar rr UY pease \ Lae eee ans ral ora Sarasa maaraarge Zeman ae ae oe oe rrr z ao ieee Le ee [IV Appropriation of Profit Statutory Reserve a we 2rd 6,55,51,176.58) _Capital Reserve. | 21,58,232.00| 11,10,02,139.76) Investment Fluctuation Reserve 12,56,01,956.00] 6,70,30,677. ee fae ea |_Special reserve nes * 4,00,00,000.00 _____5,00,00,000.09} eS ae oa a ane A - 44,75,41,335.66| 32,77,55,878.36| cea ag SEE | Notes on Acgbunts 2 preekom in Bal Se emer ores So Ss f sae = Br eee Son ar sie bide Dates0-0e 2034SCHEDULES ANNEXED YO AND FORMING PAI OF FINANCIAL STEMENT AS ON 31 MARCH 2014 |___soreote.s cs a “ASON ‘4S OW. |__| 31.03.2018 34.03.2013, \cAPrTAL, - | [authorised Capital 500,000, [| 5,00,00,000,00 5,00,00,000.00 [hares ofRs.100 each 1 Issued subscribed called up and paid up ~ mi [capital 4,00,000 shares of Rs.100 of each Bank 4,00,00,000.00 4,00,00,000.09 ‘Shara Capital Deposk Account 49,37,26,000.00] _49,97,26,000.00) TOTAL TT 53,97,26,000.00] $53,97,26,000.00) E ae ~ [RESERVES & SURPLUS a = ‘AS ON SON i. Statutory Reserves - 31.03.2034 34,03,2033, ‘Opening Balance 7" 41,05 33,031.18) 34,4981 854.60] ‘Additions curing the year [8185,08,267.00| 6 .55.51,176.58 Deductions during the year 0.00) 0.00 CLOSING BALANCE: '50,0043,298.18 41,05,33,031.18 Capital Reserves | | opening galance - 19,84,23,636.25 8.74,21,498.53 ‘Additions durin the year 21,58,232.00) 11,10,02.139.76] Deductions during the year a _ 0.00 0.09) ‘CLOSING BALANCE z 20,05,83,868.29 19,84,23,636,29| |i tnvestment Fluetuation Reserves | - arene ‘Opening Balance 7 42,81,72,188.34 as ‘Addlions during the yea 12,56 01,956.00) 60.30.57 7 0.00 00 - ‘35 37,74,14434 42,81,72,488.34) Opening Balance —_ 0) ‘0.00) “Additions curing the year - 0.00) yeductions during the year 0.00) (CLOSING BALANCE General reserve ‘A) Opening BalancafKGB) 76,7709, 587.15) 75,02,98,915.98| Additions during the year Deductions during the year ——___a.00 174,10,571.17 3,35,41,719.00 - 0.00 ‘CLOSING BALANCE: - 71,41,67,768.15) 76,77,08,487.15| 1B) Opening Balance CHIKO) 7.14,51,539.66] ___8,68,30,264.55| Adaltions during the year - .00| 4,31,796.36 ‘Deductions during the year i 0.00] —1:58,10,521.85| ‘CLOSING BALANCE, 74 51,535.66 7,14,51,539.65| | —€ Opening Balance (GB) 19,59,72423.35| 18.24 2 ‘Adlon during the year I 0.09] 1,38,14,400,62| Deductions during the year - 0.00] 0.00) ‘CLOSING BALANCE — 19,59,72,423.35] 3959,72,423.35) |___General Reserve Total(a+8+0 98,15,91,731.16| 103,51,33,450.16| Special reserve _ [es = 7 Opening Balance ——6,73,00,000. 4,73,00,000.00) Additions during the year 4,00,00,000.00) 5,00,00,000.00 Deductions during the year. = - 0.00) 0.00) ‘CLOSING BALANCE = ___10,73,00,000.00| ~6,73,00,000.00) |v)Long term agricultural loans reserve Opening Balance — —T 51,02,736.00] 51,02,736. “Additions During the Year 0.00] 0.00] Deductions During the Year = — 0.09] [CLOSING BALANCE ____51,02,736.00] 51,02,736.00| |vi.Balance in Profit & T a ‘Opening Balance i 3,63,25,638.12) 0,00) ‘Auditions During the Year 19,02,72,880.661 1,83,25,538.12| ‘Dedustions During the Year = 0.00] ‘CLOSING BALANCE 20,85,98,518.78| 1,83,25,638.12| ‘TOTAL 255,69,90,296.75 | 226,29,80,680.089)‘SCHEDULE -3 [- 2. other Accounts 1 “AS ON ‘SON DEPOSITS [3i.03.2014 | 31.03.2013 | [A.1, DEMAND DEPOSITS _ — 1. From Banke _ From Others 108,7532,12676) 10285 24,334.17] |i. SAVINGS BANK DEP i a aa 1. From Banks — 2. From Others I 1364 16,58 33485| 1165 35, 12,336.06) |i) TERM DEPOSITS 1 From Gants - 2. From Othe 313 72.94067.57| __2578,70,88,74.9) TOTAL Ci & i) -4666,64,84,529.22| 3844,91,25,444,54| B1_Deposis of branches n India 4666,64,84,529.22| 3844,91,25,444.54| 2 Deposits of branches ‘outsice India soneDULe ‘SON ‘AS ON |porrowines [—[-3i.03.2038 53.03.2053, [LBorowing in India s 1. Reserve Bank of India i ‘er Banks 7 ‘State Bank of Mysore. 201,85,18 040.00] 101,08,71,109.00] Corporation bank ¥ | _| 3. Other Institutions & AgenGES 446,24,21,300.00| 2744622000) [IE Bonowings outside India ae ‘TOYAL (T&T) (648,09,39,340.00| _ 375,49,33,309.00 [Secured Borrowing — - i Included in (1 & 11) above ~ scmDues Z AS ON. OTHER LIABILITIES 2 PROVISIONS 303.2044 Inter Office Adjustment (Net 34,24,48,005: 8403.26 825.73) [Interest Acored - 15,38,54,000.43 12,25 85,855.95 [Deferted Tax Uabiliy 3,23,74,862.00 3.23,74,862.00 Less: Excess Provision Transfert PRL Ac 18,95 44100] INET Defered Tax Labi I 3.04.78 421.00) 3.33,74,862.00 | Grant nom see" = 0.00 291,635.00 [Others including Provisions | ar 73.01 55,85,38,746.23) [Toray - || 444,30,86,199.72) 165,43,18,925.93| ‘TOTAL LIABILITIES: 4656,10,91,359.54 —____scmwouns 6 as ow. ‘ASON CASH & BALANCE WITH R.B.1, 31.03.2014 31.03.2013 {L.Cash in hand 52, 88,60,958.00) 45 95,95,246.31 I. Balance with RBI. I = I 3. Current Accounts 102370074, 154,07,43,790.74) __ToTAL 233,74,04,748.74 30,04 39,037.05] 70H. ‘SON fetoestee A cd - 31.03.2014 34.03.2013 | in nda - - ae 4. Balance with Banks fa current Ale = BBS 41,02,64,219.98) 2. Bank Desests 329,00,00,000.00|_ 193,75,97, 956.00 fora 3 —234,83,62,175.98] 174,23,36,568.50) | [37,2 aot‘ASON > INVESTMENTS. [ 33.03.2014 _ iintndia _ 1. Govt, Securities 1256 01,95, 644.00 1032,79,21,334.00) 2 Shares | 5,95, 38,480.76 4,250.00) 3. Mutual funds 863943110 E22A4.01 ia. Debentures & Bonds 73,18 30,000.) 63,17,04,000.00] Gross Investments 1357,02,03,555.86] 1148,52,79,765.01] LESS Depreciation 1,86 90,000.00] 754525475 INET INVESTMENTS 1355,15,13,555.86| _1117,77,34,470.26| HEDULE-9 ae ‘SON SON laovances _ | sis.2034 31.03.2015 Bis purdiased 13,05,64,50656| 22,97 23,50441] TL Cash Creat, Overdrafis& Loans ~~ 1847,12,81,797.2 449,60,99,310.04 ‘tepayaile on Demand — 1M Term Loans —_ T7AA7S3,67i.13| 1497, 95,69,300.22| (C1 Advances india TOTAL | 3680,64,27,35541) 3970,53,98,114.87) [5.1 Secured by tangible assets covered = bby Bank/Gov. Guarantees 3170,36 03,382.00 257831 35 871.00) [TIE Unseoured ~ — 510,28,23.963.4 392,22.62243.87) TOTAL '3680,64,27,35% 2970,53,98,414.87| 1. Priority Sector tI 2817,14,54,558.00) 1931,52,07,178.00] 2. Others z 853,49,32,797 41 1039,01,90,936.87} I. Advances ouae Ina z TOTAL —3680,64,27,355.41| 2970,53,98 118.87) _______scliepue-20 ASON [FIXED ASSETS, 3i.03.2014 IE) Ste Owned I 351357765 35,43 577.63) ) Lease Hold Land =a 43,47,930.0 43,47 380.0 Less Depreciation — 3.34,554.00) 39,859.00] Net Value of Land I} 74,76,693.65| 76,21,598.65| i) Bling under constuion is a 0.0) o.09 Ti) Building _ a) Opsring Balance a a 1,52,82.178.00 by Adtions 0.0) 6.00 LESS Depreciation to date 48,35 124.47 4069,018.07) Net value 4,04,49,003.53] 4,2,13,109.93] I Other Fixed Assets (including 25 197A 67 55888 5,943,208. 4,95,04,181.00] 33,14,03,630.92| __26,39,71,739.88] 39,25,140.22 19,99,317.96 32,74,78,490.60) 26,19,72,421.92| 22,39,97,860.14 10,34,80,630.46| 17,8414, 787.28 | 8.35,57,634.63] 64 | [Net Value of Fixed Assets ~1244,06,327.64l 10,23,92,343.22| a ° ~ 0 is loner assere —s.032084 510.2013 I tntereat Reuss a 408, 75,382.43 3548, 1247857 I Tax ald in advange [TOS om 17,97,69,368 31 703,99,141.33 IL Stationery & Stamps ‘570,622.41 27,85,639.43 hv: Others = 80,70,938.67 es TOTAL (Ih LAW) |_~22,67,68,218.16] —rorat assers —_| 5738,72,26,365.69| 4656,10,94,359.54)ScEDUME = 12 ro 31032008 3.032012 |___ cower exons {1 lems aaaint the Bonk not |_scknowiedoed as debts 1,30,87,823.00 1,3087,823.00| I. abt to {HL Ubaty on account of oustanding forward exchange contracts I. Guarantee civen on behalf of constituents a)In india 9,25,10,172.00| 4,17,22,568.00| |_b) Outside India _ |v pccepcance, endorsements and ther obigations [vi Other items for which tne Bank. is liable TOTAL 10,55,97,995.00SCHEDULE 13 L Fo the period fom 02042019 |For the patio om 4.0.20 fbeinterest {Discount ________ | 376,63,94,324,39| 318, 70,33,146.69] IL Interest on Investments/TDRS 106,49,34,529.00)_ '84,95,27,878.90) lll. Interest on balances with RBI and ‘other Inter Bank funds — TOTAL 483 13,28,853.39| 403,65,41,025.59| KE = Tor the period from 01.04.2013 Por the pared trom 01.04.2013) (OTHER INCOME _ “Mtesi.03 2016 pe Fo 31.03.2023 | Commission, Exchange & Brokerage 30511472788) ———*73,38,43,944.79) 1. Profit on Sale of Govt, Security ete 21,58, 23,166.00) 10,53,74,639.76] INL. Profit on sale of Land building and - —3,65,704.00] 1,40415.00] |__ other assets is t LESS Loss on Sale of land building [ = | and other assets { IV. Miscellaneous income. 2.44,71,752.23| 4,39,30,392.83| SS __54,57,75,350.17| 89,392.38| sepa _ Fo Uh pd om OL OS2015 Forehe paed Wom OT OCTET [INTEREST EXPENDED. i Tos to31.032013 Il. Interest on Deposits : 303,86,71,67051| 241,91,36,537 7; IL. Interest on NABARD & other | Inter-Banksborowing 236084977. 22,78,01,545.13| TOTAL 327,A7,56,648.38) 264,69,38,082.85| For the pelo rom 01.04.2015 [For the pale trom 0.04.20 PERariNG exeKse asin 2018. to3102202 2. Payments to & provision for empl - 96,68,94,609.89| 91,04,33,867.02| 2. Rent, Taxes and Lighting 2,20,72,195.79| 5,53,08,473.63| [3 Printing & Stavonery 1,33,73,942.93| 1.17,98,084,17| [4 Depreciation on Bank Property 457,81,510.3| 4,19,60,819.45| '. Directors Fees, Allowances and expenses __22,260.00] 31,480.00 (6. Aust Fees and expenses (including Branch Auditors) 37,90,565.00| 26,24,779.00) 17. Law Charges 16,42,726.00| 17,94,190.50) [8. Postaoes, Telearms, Telephone. '62,18,969.50] 65,97,603.68| ‘2, Repairs and Maintenance { __62,56,181.21 54,42,854.50) 10, Other Expenditure 26,34,35,928.55| 21,24 42,696.34 1. Provision for REDD TOTAL, eae a 10,92,13,771.52 149,67,02,660.52|_ | __14,03.77,645.47|KAVERI GRAMEENA BANK HEAD OFFICE: MYSORE BALANCE SHEET AS ON 31 MARCH 2014 IRE TO SCHEDULE Nos. 1 TO 17 Chief Manager (Accounts) — General Manager (Admn) eae rman irector Director Director Director Vie R. BALAKRISHNAN JASVINDER PAL SINGH —_P. BALAKISHAN P.A.GOPAL AMBARAYA ASHTAGI MOHAN Director Director Director For A.S.Anshuman & Co., Chartered Agcountants (Firm Reg. No. 0054465) PLACE: MYSORE (Gopal Narayanan) DATE: 30-04-2014 PARTNER M. No.01791KAVERI GRAMEENA BANK HEAD OFFICE: MYSORE SCHEDULE-17 NOTES ANNEXED TO AND FORMING PART OF THE FINANCIAL STATEMENT AS ON 31st MARCH 2014 RECONCILIATION 01. Inter Bank accounts are tallied as on 31% March 2014 and Inter Branch transactions are tallied up to March 2014. The Reconciliation of Inter-Branch and various other accounts including Branch system suspense, Batch suspense and clearing suspense ‘accounts is an ongoing process and system based. The impact of the above, if any on the profit and loss account and Balance sheet, in the opinion of the management Is not material. 02. Share Capital Deposit Account of % 4997.26 lakhs comprises of % 2498.63 lakhs & 749.59 lakhs and & 1749.04 lakhs being 50%, 15% and 35% Share received from Government of India, Government of Karnataka and State Bank of Mysore respectively ‘towards liquidity support under restructuring scheme for RRBs. 03. Investments are valued in accordance with Reserve Bank of India guidelines. The Bank is holding Government Securities amounting to € 125601.96 Lakhs. RRBs have been granted freedom to classify portfolio of SLR Securities under HTM till 2013-14, Investment Fluctuation Reserve has to be made for a minimum of 1% per annum and up to 10% of the portfolio within the period of 10 years on the Government Securities, which are under Held for Trading/Avallable for sale category. Though the Bank has Government Securities under Held to Maturity category only, as a prudential measure the Bank has made a cumulative Investment Fluctuations Reserves of % 5537.74 Lakhs forming 4.41% of total Government Securities held, The market value of some Shares held as on 31* March has declined by Rs. 4,44,586.00 which is considered to have no impact as the overall appreciation of all the shares held was Rs.40,10,197.24 (net)sede 04 In accordance with the RBI guidelines the Bank has amortized the premium paid in respect of Government Securities over the remaining period of maturity. The amount debited on this account for this year is % 216.83 lakhs which is induded in operating expenses. 05 Provision for Advances on Standard Assets outstanding of € 2675.41 lakhs are not netted from gross advances but shown separately under “Other Liabilities and Provisions- Others” in Schedule No. 5 of the Balance Sheet. The Sub-Standard, Doubtful and Loss assets are shown in the Balance Sheet net of provisions. ‘The cumulative provision being & 4988.47 lakhs in respect of these classes. 06 Investments in Bank Deposits of € 32900.00Lakhs. PROVISIONS / PAYMENTS: 07 A total of ¥ 2854.94 lakhs has been transferred to provisions/paid during the year and cumulative provisions held on 31-03-2014 is furnished below: a) % 1092.14 Lakhs has been provided towards NPAs during the year. The cumulative provision til the year end stands at % 4988.47 Lakhs. b) The Bank has adopted LIC's Group Leave Encashment Scheme (GLES) and paid an amount of %207.09 lakhs based on actuarial valuation of encashment liability of the staff for the F.Y. 2013-14, ‘The Bank has paid to LIC € 1020.29 lakhs for gratuity during the year. There is no pending claim from LIC as on 31% March 2014 on Gratuity and Leave Encashment, c) The bank has reversed excess provision for Deferred Tax liability (DTL) of € 18.96 lakhs and same has been credited to Profit and Loss Appropriation account. d) Other Liabilities include Rs.75.68 lakhs received from SBM towards “CBS implementation of 210 branches in the year 2009. ) During the Financial Year 2013-14, we have paid € 535.42 lakhs towards Income Tax on account of regular assessment of Erstwhile Cauvery Kalpatharu Grameena Bank, This amount has been debited to revenue reserve account of Cauvery Kelpatharu Grameena Bank under Reserves and Surplus.ade 08. A Grant was received from SBM amounting to ¥ 28.81 lakhs for implementation of CBS. For the year, a remaining sum of € 2.92 lakhs was transferred to Profit and Loss account as income. 09. As per prudential norms interest not collected (INC) stood at ¢ 432.04 Lakhs as on 31.03.2014. 10. In the opinion of the Management there Is no impairment of any of the fixed assets of the Bank. 424. In respect of all fixed assets the Bank is adopting straight line method for computation of depreciation. 12, ADDITIONAL DISCLOSURE IN TERMS OF NABARD Guidelines. a. CAPITAL [ sr. ~~ Particulars ‘As on ‘As on 31/03/2014 | 31/03/2013 1 CRAR % 10.91 11.93 IL CRAR ~ Tier I Capital (%) 7.94 9.00 T_| CRAR— Tier Ii Capital (%) 297 __2.93 1V_| Percentage of Shareholding of the r a. Government of India 50% 50% ‘| b. State Government Z 15% 15% ¢. Sponsor bank 35% 35% Investments ~ = (& in Lakhs) Sr. Particulars As on Ason 31/03/2014 _| 31/03/2013 1._| Value of investments T] Gross Value of investments 135702.04 111852.80 Ii] Provisions of depreciation _ 186.90 75.45 Iii] Net value of investments 135515.14| 11177735 2. | Movement of provisions held towards - Depreciation on investments T} Opening balance ___ 75.45 75.45 Ti] Add: Provisions made during the year 111.45 [= NIL Tii] Less : Write off / write back of excess NIL ‘NIL provisions during the year “1 Jy] Closing balance 186.90 75.45 3 ‘Total Book Value of Quoted Shares 595.38 4.25 Market Value of Quoted Shares 635.49 16.63‘Transactions (in Lakhs) Item Minimum Maximum Daily Average | Ason Outstanding Outstanding Outstanding 31 During the year | During the year | during the year | March 2014 Securities sold under Repos NIL NIL NIL NIL ‘Securities purchased under reverse Repos NIL NIL NIL ‘NIL D.Non = SLR Investment portfolio @ Issuer composition of Non SLR Investments (& in Lakhs) No] Issuer Amount | Extent of | Extent of below | Extent of | Extent of Private | investment grade | unrated | unlisted Placement securities securities | securities QQ) 2) ) 4) (5) (6) a) 1)_ | PSUs NiL__[__NIL NIL NIL NIL i) [Fis 7318.30 NIL NIL NIL NIL iit)_| Banks [103.57 NIL NIL Ni NIL iv) | Private | 491.82 Corporate NIL NIL NL NIL v) | Others (Mutual |~ 2186.39 Funds etc.) NIL NIL NIL NIL vi) | Provisions held towards NIL NIL NIL NIL NIL |__| depreciation - | Total 10100.08 NiL NL Nt Nit ‘The Non-SLR investment portfolio of the Bank consists of Bonds, Mutual Funds & Equity Shares. These are valued based on the RBI norms category wise. No provision is required for these as all categories of investment have net appreciation in value. (ii) Non-performing Non ~ SLR investments @ In Lakhs) Particulars ‘Amount _ Opening Balance NIL. Additions during the year since 1* April NIL | Recovery during the year NIL | Reductions during the above period by write off NIL. Closing balance NIL Total provisions held NIL13. ASSET QUALITY 13.1 _Non—Performing Assets (in Lakhs) Sr Particulars ‘As on ‘As on 31/03/2014 _| 31/03/2013 i__ | Net NPAs to Net Advances (96) 1.46 2.09 ii__| Movement of NPAs (Gross) __ (2)_| Opening balance 11835.69 9148.60, (b) | Additions during the year 4751.08 6832.73 ((c)_| Reductions during the year 4538.35 | 4145.64 ()_| Closing balance 12048,42 11835.69 iii Movements of Net NPAs (a)_| Opening Balance 7389.24 5594.68 (b) | Additions during the year 3728.35 5940.20 (¢) | Reductions during the year 4534.23, 4145.64 (@)_| Closing balance 6583.36 7389.24 \v__| Movement of provisions for NPAS (excluding provisions on standard assets | (@)_[ Opening Batance 4121.27 3544.46 [(b)_| Provisions made during the year 1092.14 907.73 ) | Write offf write back of excess provisions 224.94 330.92 Closing balance 4988.47 4121.27, 2 De Loan Asset of Restructurin: (in Lakhs) Sr Particulars Ason As on 31/03/2014 | _ 31/03/2013 i. | Total amount of loan assets subject to 3123.20 31928.87 restructuring, rescheduling, negotiation; ii. | The amount of Standard assets subjected to 3123.20 31928.87 restructuring, rescheduling, negotiation; iii, | The amount of sub-standard assets subjected to NIL NIL restructuring, rescheduling, negotiation; iv. | The amount of doubtful assets subjected to NIL NIL restructuring, rescheduling, negotiation; - _} [Note [(i) = (ii) + (iil) + (v)] 31223.20 31928.87 13.3 PROVISION COVERAGE RATIO (PCR): 59.14 for the year 2013-14 (51.34)bu 13.4 Details of financial assets sold to Securitization (SC) / Reconstruction (in Lakhs) Company(RC) for assets Reconstruction ‘Sr Particulars Ason Ason 31/03/2014 31/03/2013 i._| No of accounts NIL NIL ii | Aggregate value (net provisions) of accounts sold NIL NIL to SC/RC iii__| Aggregate consideration NIL NIL iv | Additional consideration realized in respect of NIL NIL accounts transferred in earlier years y__| Aggregate gain/loss over net book value NIL NIL Sheet: 13.5 Details of non performing financial assets purchased/sold Bank which purchases non performing financial assets required to make the following disclosure in the Notes on Accounts to their Balance A. Details of non performing financial assets purchased —_(? in Lakhs) from other banks shall be Sr Particulars As on As on 31/03/2014 31/03/2013 _| | 1(@) | No of accounts/purchased during the year NIL NIL (b)_| Aggregate outstanding NIL NIL 2(a) | Of these, number of account restructured during NIL NIL the year | (b)_| Aggregate outstanding 7 NIL NIL B. Details of non performing financial assets sold (Rs in Lakhs) Sr Particulars As on Ason 31/03/2014 | 31/03/2013 1 | No of accounts sold NIL NIL z Aggregate outstanding NIL NIL } 3 Aggregate consideration received NIL NIL 13.6 Provisions on Standard Assets during the year (in Lakhs) Sr Particulars Ason As on _ 31/03/2014 | 31/03/2013 _| Provision towards Standard Assets 908.98 458.48 13.7 CONCENTRATION OF DEPOSITS : Aggregate of top 20 deposits forms 12.80 % of total deposits. 3.8 TRATI ADVANCES: Total advances to top 20 borrowers Forms 2.42 % of the total advances Of the Bankx ITRATON OF NPA ‘Total amount of top 4 NPA accounts Forms 0.94 % of total advances. _14, BUSINESS RATIO Sr Particulars ‘As on AS on 31/03/2014 | 31/03/2013 i | Interest Income as a percentage to 9.47 9.84 Working funds | Non interest income as a percentage to 1.07 0.93 Working funds ili | Operating Profit as a percentage to 1.19 0.99 Working funds iv | Returns on Assets 0.88 0.79 v_| Business (Deposits plus Advances) per 531.74 508.45 employee (@ in Lakhs) vi_| Profit per employee (@ in Lakhs) 2.83 — 2.43 15. A ILITY MANAGEMENT-MAT! ATTERN OF CERTAIN EM: ETS AND LIABILITIES (in Lakhs) Particulars Deposits | Advances [Invest- | Borrow- | Foreign | Foreign ments —_| ings currence | currency assets | liabilities 1 to 14 days 7840 8272 ‘om a NIL NIL 15 to 28 days 10325 20269 = = Nit NL [29 to_3 months 13718 30069 6009 73504 | NIL NIL Over 3 months and|~_55482 32672 4250 8588 NIL NIL upto 6 months ‘Over 6 months and | 91494 73861 2083 20106 | NIL NIL upto 1 year Over 1 year and 130686 81275 6444 9854 NIL NIL | upto 3 years Over 3 years and 83715 56166 19142 1942 NIL NIL upto 5 years | ‘Over 5 years 73405 70801 97577 815 NIL NIL Total 466665 | 373485 | 135515 | 64809 NIL NIL16. EXPOSURE — EXPOSURE TO REAL ESTATE SECTOR @ In Lakhs) or Particulars As on Ason 31/03/2014 _| 31/03/2013 a_| Direct exposure NIL NIL i | Residential Mortgages Lending fully secured by mortgages on residential property that is or will be occupied by the borrower or that is rented (individual housing loan upto Rs 25 lakh may be shown separately a. UptoRs 25.00 lakh b. Above Rs. 25,00 lakh 47878.96 | 2964.98 4251.43 3546.96 ii | Commercial real estate Lending secured by mortgages on commercial real estates (office buildings, retail space, multi-purpose commercial premises, multi-family residential buildings, multi tenanted commercial premises, industrial or warehouse space, hotels, land acquisition, development and construction, etc) Exposure would also include non fund based (NFB) limits: 5810.16 5435.18 iii | Investments in Mortgage Backed Securities (MBS) and NIL NIL other securitized exposures _ |__|. Residential : NIL NIL |b. Commercial Real Estate [NTL NIL b) [Indirect Exposure NIL. NIL. Fund-based and non fund based exposures on National NIL NIL Housing Bank (NHB) and Housing Finance Companies (HFCs) J Single wer (SBL) exceedes the bank: Bank has not exceeded the prudential exposures limits of = 4080.00 Lakhs under ‘SBL/GBL during 2013-14. IISCELLANEOUS - Al OF PROVOSIONS MADE FOR IN DURING THE YEAR (in Lakhs) Particulars Ason As on 31/03/2014 | 31/03/2013 Provision for Income Tax 1600.00 619.00 afADDITIONAL DISCLOSURES. 18.1 Provisions and Contingencies To facilitate easy reading of the financial statements and to make the information on all Provisions and Contingencies available at one place, banks are required to disclose in the Notes of Accounts the following information: sr Particulars As on As on 31/03/2014 31/03/2013 ‘a | Opening balance in the accelerated provisions on 1285.15 1192.79 NPA assets b | The quantum of accelerated provisions made in the NIL 92.36 Accounting year | Amount of draw down made during the accounting NIL NIL year @ | Closing balance in the accelerated provisions 1285.15 1285.15 account, 2 DISCLOSURE OF ‘A. CUSTOMER COMPLAINTS Sr Particulars Ason Ason 31/03/2014 31/03/2013 a_| No of complaints pending at the beginning of NIL NIL the year 01.04.2013 b_| No of complaints received during the year 59 31 ¢_| No of complaints redressed during the year 59 31 d weet complaints pending at the end of the NIL NIL B. AWARD PASSED BY THE BANKING OMBUDSMEN Sr Particulars ‘As on ‘As on 31/03/2014 _| 31/03/2013 a | No of Unimplemented Awards at the beginning of NIL NIL the year B | No of Awards passed by the Banking Ombudsmen cr during the year 2 7_[ No of Awards implemented during the year OL Zia ¢ | No of Unimplemented Awards at the end of the NIL NIL year-10- c. s in ing of Insurani (& in lakhs) As on Ason 31/03/2014 | 31/03/2013 Income from SBI Life products 44.72 21.23 Income from corporate agency with UIICO. 17.07 4.48 Tncome from Agriculture Insurance Corporation of India | 11.36 0.00 19. Related Disclosures As per A S 1 Clause 9. of Scope of A.S.18 of ICAI state that’ No disclosure is required in the financial statements of state controlled enterprises as regards related party relationships with other state~ controlled enterprises and transactions with such enterprises.’ Accordingly no such disclosure is made under A.S 18KAVERI GRAMEENA BANK HEAD OFFICE: MYSORE SIGNIFI UNTING POLICIE (ACHED. ND FORMING PART OF THE FINANCI, MENT AS ON 31 MARCH 2014 . ACCOUNTING POLICIES: 1. GENERAL: The accompanying financial statements have been prepared on historical cost basis except as otherwise stated and conform to the statutory provision and practices prevailing in the country. 2, REVENUE RECOGNITION: INCOME ‘The method of accounting followed is generally on accrual basis except: @) Interest and other income on non-performing assets andInvestments which is accounted on actual realization as per the norms laid down by Reserve Bank of India. Commission and Locker Rents, which is accounted on receipt basis. Interest subvention (2%) receivable from NABARD/GOI for the Crop loan disbursed during the financial year 2013-14, is accounted on receipt basis. b) 9 d) Interest incentive of 3% receivable from GOI for prompt repayers for the crop loan disbursed during 2012-13 and 3% for the crop loan disbursed during the financial year 2013-14 is accounted on accrual basis, since the benefit is transferred to the credit of beneficiary's accounts. ©) Grants for capital expenditure are recognized as Income in proportion to the related depreciation on the capital asset. 3. ADVANCES: The Bank has followed prudential norms formulated by Reserve Bank of India for Classifying the Advances as Standard, Sub-Standard, Doubtful and Loss Assets.nde (04 In accordance with the RBI guidelines the Bank has amortized the premium paid In respect of Government Securities over the remaining period of maturity. The amount debited on this account for this year is % 216.83 lakhs which is included in operating expenses, 05 Provision for Advances on Standard Assets outstanding of € 2675.41 lakhs are not netted from gross advances but shown separately under “Other Liabilities and Provisions- Others” In Schedule No. 5 of the Balance Sheet. The Sub-Standard, Doubtful and Loss assets are shown in the Balance Sheet net of provisions. The cumulative provision being & 4988.47 lakhs in respect of these classes. 06 Investments in Bank Deposits of € 32900.00Lakhs. PROVISIONS / PAYMENTS: 07 A total of € 2319.52 lakhs has been transferred to provisions/paid during the year and ‘cumulative provisions held on 31-03-2014 is furnished below: a) © 1092.14 Lakhs has been provided towards NPAs during the year. The cumulative provision til the year end stands at € 4988.47 Lakhs. b) The Bank has adopted LIC’s Group Leave Encashment Scheme (GLES) and paid ‘an amount of 8207.09 lakhs based on actuarial valuation of encashment liability of the staff for the F.Y. 2013-14, “The Bank has paid to LIC € 1020.29 lakhs for gratuity during the year. There is no pending claim from LIC as on 31% March 2014 on Gratuity and Leave Encashment, ©) The bank has reversed excess provision for Deferred Tax liability (DTL) of % 18.96 lakhs and same has been credited to Profit and Loss Appropriation account. d) Other Liabilities include Rs.75.68 lakhs received from SBM towards CBS implementation of 210 branches in the year 2009. Goan SeOo! AS. ANSHUMAN & Co. Chartered Accountants Fem Noes a PANE ANCEABAIS = FAX # AACFADSO4T STOO2 To ‘The President of India. Repost On The Financial Statements 1. We have audited the accompanying financial statements of KAVERI GRAMEENA BANK, Mysore as at 31 March, 2014, which comprise the Balance Sheet as at March 31, 2014, and Profit and Loss Account for the year then ended, and a summary of significant accounting polices and other explanatory information. Incorporated in these financial statements are the setuens of 20 (Twenty) branches audited by us and 333 (Three hundred and thiry three) branches were audited by branch auditors. The branches audited by us and those audited by other auditors have been selected as per the guidelines issued by Reserve Bank of India, Ministry of Finance — Government of India and NABARD. Also incorporated in the Balance Sheet and the Statement of Profit and Loss are the returns from 47 (Forty Seven) branches which have not been subjected to audit. These unaudited branches account for 0.28 per cent of advances, 0.23 per cent of deposits, 0.28 per cent of interest income and 0.29 per cent of interest expenses. Management's Responsibility for the Financial Statements 2, Management is responsible for the preparation of these financial statements in accordance with Banking Regulation Act of India. This responsibility includes the design, implementation and muintenance of internal ccontcol zelevant to the prepatation of the financial statements that are free from material misstatement, whether due to fraud or exroe Auditor's Responsibility 5. Our responsibilty is to express an opinion on these financial statements based on our audit. We conducted out audit in accordsace with the Standards on Auditing issued by the Institute of Chartered Accountants of India, ‘Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. 4, An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial starements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of materia misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Bank’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropsate in the citcumstances. An audit also includes evaluating, the appropriateness of accounting, policies used and the reasonableness of the accounting, cstimates made by management, as well as evaluating the overall presentation of the financial statements. 5, We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for out audit opinion, 1106, ITA Main, Stage, Gokulam, Mysore-S70002 A 0821-2512724; 9880241611 A __anshumanilp@gmailcomAI AS. ANSHUMAN & Co. Chartered Accountants om NoOOSH6S 3 TAN RACER SERTAX AACEAWSS1STIO2 6. While the erstwhile Core Banking System of Visveshvaraya Grameena Bank has been migrated on 12th March, 2013, the migration of Core Banking System of erstwhile Chikmagalur and Kodagu Grameena Bank was completed on 31* May 2013 ‘The Bank has cartied out pre-implementation application control audits and data migration audits in respect of critical systems sind conducted a post-implementation detailed application control audit. Data migration audits for Viaveshvaraya Grameena Bank and Chikmagalur and Kodagu Grameena Bank was carried out by an independent «qualified external Information System auditor for the year. Opinion 7. In our opinion, as shown by books of bank, and to the best of our information and according to the explanations given to us: {@ the Balance Sheet, read with the notes thereon is full and fair Balance Sheet containing all the necessary particulars, is properly drawn up so as to exhibit a true and fair view of state of affairs of the Bank as at 31st March 2014 in conformity with accounting principles generally accepted in India; (i) the Profit and Loss ‘Account, read with the notes thereon shows a true balance of profit/loss, in conformity with accounting principles generally accepted in India, for the year covered by the account Report on Other Legal and Regulatory Requirements 8, The Balance Sheet and the Profit nd Loss Account have been drawn up in Forms “A” and “BY respectively of the Third Schedule to the Banking Regulation Act, 1949. 9, Subject to the Kmitations of the audit indicated in paragraph 1 to 6 above and subject also to the Hinitatons of isclosuce required therein, we repost that: {@) We have obtained all the information and explanations which to the best of our knowledge and belie, wese necessary for the pusposes of our audit and have found them to be satisfactory. (0) The tansactions of the Bank, which have come to our notice have been within the powers of the Bank (6 The returns received from the offices and branches of the Bank have been found adequate for the purposes of our audit, 10. In our opinion, the Balance Sheet and Profit and Loss Account comply with the applicable accounting standards. For AS. Anshuman & Co., eteraguXccountanis ca\Gopal Narayanan Paxiner Place: Mysore Membership No017791 Date: 29-04-2014 Firm Registration No.005446S 06, ITA Main, Stage, Gokolam, Mysore570002 08212512724; 9880241611 8 anshumanlip@gmallcom