Disclosure of Information

Notes of Accounts and Significant Accounting Policies :


    The accompanying financial statements have been prepared under the historical basis and confirm, in all material aspects, to generally accepted accounting principles (GAAP) India, which comprise the statutory provisions, guidelines of regulatory authorities - Reserve Bank of India (RBI), accounting standards / guidance notes issued by the Institute of Chartered Accountants of India (ICAI), and the practices prevalent in the banking industry in India.

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


      The financial statements are drawn up keeping in mind the historical cost and going concern concept and in accordance with generally accepted accounting principles and practices prevailing in the co-operative banks in India except otherwise stated in Statutory Audit Report.

      a. Interest income is recognized in profit and loss account on accrual basis except interests on non performing Assets & Non performing Investments which are recognized on realization basis, as per RBI guidelines.
      b. Commission, dividend and locker rent incomes are recognized on realization basis.
      c. Insurance claims are recognized on cash basis.

      a. The Bank has categorized the investments in accordance with the RBI Guidelines applicable to co-operative banks. Accordingly, classification of investments for the purpose of valuation is done under the following categories:
      - Held to Maturity
      - Available for Sale
      - Held for Trading
      b. Investments have been classified under five groups as required under RBI guidelines - government securities, other approved securities, shares in co-op. institutions, PSU bonds & Bonds of all India Financial Institutions and certificate of deposits and others including Mutual Fund (Debt) for the purpose of disclosure in the balance-sheet.
      c. Investments classified as Held to Maturity category have been valued at acquisition cost, premium, if any, on such investments is amortized over the residual life of the particular investments.
      d. Investments classified as Held for trading category have been marked-to- market on the basis of guidelines issued by RBI. Each security is revalued at the market price or fair value determined as per Regulatory guidelines and only the net depreciation of each group for each category is provided for and net appreciation, if any, is ignored. On provision for depreciation, the book value of the individual securities remains unchanged after marking to market.

    • ADVANCES :
      Advances are shown in balance sheet at its actual out standing balances and provisions for PA and NPAs are made on the basis of asset classification and providing requirements under the prudential norms laid down by the Reserve Bank of India from time to time.

      a. Hitherto the fixed assets were shown at historical costs. The fixed assets are shown at cost of acquisition or construction less depreciation (written down value) in conformity with Section 29 of the Banking Regulation Act 1949. No asset has been revalued during the year. Cost includes cost of purchase and all expenditure such as site preparation, installation costs & professional fees incurred on the assets before it is put to use. Subsequent expenditure incurred on assets put to use is capitalized only when it increases the future benefits from such assets on their functioning capability.
      b. Depreciation on Fixed Assets is charged on Written down value at the following rates:

      Sr. No. Name of the Assets Rate of Depreciation
      1 Motor Car @ 15.00% WDV 
      2 Equipments  @ 15.00% WDV 
      3 Properties @ 10.00% WDV 
      4 Furniture & Fixtures @ 10.00% WDV
      5 Computers  @ 40.00% WDV

      Provident Fund: Eligible employees are received benefits – like Provident Fund, which is a defined contribution plan. The contribution made by Bank is charged to Profit and Loss Account. The Bank has no further obligations under the provident fund plan beyond its monthly contribution.

      Provision for Staff Gratuity Fund & Staff Leave Encashment Fund: As per consistent policy adopted by the Bank, every year the provision for staff gratuity & staff leave encashment have been made out of profit by transferring the requisite amount to polices of LIC of India as considered appropriate by the Management. The Bank provides for gratuity to all eligible employees. The benefit is in the form of lump sum payment to the employees on retirements / on death while in employment / on termination of employment, for an amount equivalent to 15 days' basic salary payable for each completed year of service subject to a maximum amount as per the payment of Gratuity Act. Payment of actual amount of obligation on retirement benefit and gratuity benefit to eligible employees is made out of such fund with the LIC of India.

      The bank’s policy is to ensure that the balance in provisions, specific funds and assets are adequate to cover the probable out-flow of any expenses/ liabilities and major principal amount outstanding in respect of all non- performing advances, as also all other contingencies including un-serviced and doubtful investments and accordingly recognizes the provisions only when a reliable estimate of the amount of the obligation can be made.

      Income tax expense is accrued in accordance with AS 22 – "Accounting for Taxes on Income" which includes current taxes and deferred taxes on estimated basis. But Deferred Tax Assets / Liability, if any is not estimated as on 31.03.2018.

      As per the requirements of the Gujarat State Cooperative Societies Act, and relevant provisions of bye-laws of the Bank, the net profit is appropriated in annual general meeting of the Bank to statutory reserve and other reserves.

      Except the banking segment, the Bank does not have any other operational segment. The risk and returns of the Bank are affected predominantly by banking operations only which can be classified as primary segment. The result of the segment is self-explanatory from the balance sheet and profit and loss statement.

      The Net Profit disclosed in the profit & loss account is after:
      a. Provision for Income Tax                       Rs.  84,61,120.00
      b. Provision for Bad & Doubtful Debts          Rs.    7,26,720.00


  • Payment of insurance premium to DICGC:
    During the year bank has regularly paid Insurance Premium on Deposits to DICGC as per norms prescribed by the Reserve bank of India.

  • Regrouping of previous years figure:
    Figures of the previous year have been regrouped and rearranged wherever it was necessary.

  • The Bank has a system of showing TDS deducted and advance tax paid as assets and estimated liability of income tax as liability till the processing under the Income Tax 1961, for the year is completed.

  • As per the Instructions of RBI, the accounts in which KYC norms are not complied with are frozen and no operations are allowed in these accounts. The customers are informed through public notices to comply with the KYC norms and to commence operations in the accounts.
Disclosure of information as per RBI Circular
III. Notes on Accounts:
01. Capital Risk-Weighted Asset Ratio (CRAR): 45.87%
  Movement of CRAR  
  Previous Year (as on 31.03.2017) 23.24%
  Current Year (as on 31.03.2018) 45.87%
02. Business Ratios / Informations:
  Particulars For the Year
  2017-2018 2016-2017
  Interest income as % of working funds 7.28% 6.75%
  Non interest income as % of working funds 0.89% 1.76%
  Operating profit as % of working funds 2.13% 3.06%
  Return on assets 0.39% 1.89%
  Business per employee (Rs. Lakh) 213.98 247.28
  Gross Profit per employee (Rs. Lakh) 4.49 7.32
  Net Profit per employee (Rs. Lakh) 0.81 3.91
03. Investments:    
  Investments consist of different instruments as per second table amounting to Rs. 7,167.60 lakh. In accordance with RBI guidelines, the Bank's domestic investment portfolio is classified into three categories viz. 'Held To Maturity', 'Available For Sale' and 'Held For Trading' as under -  (Rs. in lakh)
  Classification 31-03-2018 31-03-2017  
  Amount % Amount %
  Held to Maturity (HTM) 778.64 14.75% 684.59 9.55%
  Available for Sale (AFS) 4501.88 85.25% 6009.60 83.84%
  Held for Trading (HFT) 0.00 0.00% 473.41 6.61%
  Total 5280.52 100.00% 7167.60 100.00%
  • Total SLR investment to net demand & time liability is maintained at 56.48%
  • The book value, market value and face value of investments under these three categories are as under:
  As at March 31, 2018 Book Value [Rs. lakh]
  Held to Maturity Available for Sale Held for Trading Total Market Value Face Value
  Government Securities 776.14 4151.88 0.00 4928.02 4764.98 4875.00
  Other approved Securities  0.00 0.00 0.00 0.00 0.00 0.00
  Shares 2.50 0.00 0.00 2.50 2.50 2.50
  Bonds of PSUs 0.00 0.00 0.00 0.00 0.00 0.00 
  Debt Mutual Fund 0.00 350.00 0.00 350.00 350.00 350.00
  Total 778.64 4501.88 0.00 5280.52 5117.48 5227.50
04. Issuer composition of Non-SLR Investment as on 31st March, 2018:
  Issuer Amounts Extent of private Placement Extent of 'Below investment grade' Securities Extent of unrated securities Extent of unlisted securities
  Public Sector Undertakings 0.00 0.00 0.00 0.00 0.00
  Financial Institutions 350.00 0.00 0.00 0.00 0.00
  Nationalized Banks 0.00 0.00 0.00 0.00 0.00
  Others 2.50 0.00 0.00 0.00 0.00
  Total 352.50 0.00 0.00 0.00 0.00
  Non-performing Non SLR Investments: [Rs. lakh]
    2017-2018 2016-2017      
  As at April 1 0.00 104.05      
  Addition during the Year 0.00 0.00      
  Reduction during the Year 0.00 104.05    
  As at March 31 0.00 0.00    
  Total Provision Held 0.00 0.00    
  Profit or Loss on Sale / Redemption of Investments during the Year:
    2017-2018 2016-2017  
  Profit on Sale / Redemption 17.26 122.30  
  (Loss) on Sale / Redemption 0.00 (5.71)  
  Net Profit / (Loss) on Sale / Redemption 17.26 116.59  
05. Investment Depreciation Reserves:        
  2017-2018 2016-2017      
  Required Actual Required Actual      
  159.35 159.35 27.89 31.07      
06. Exposures:        
  Exposure to Real Estate Sector     [Rs. lakh]
  Particulars   2017-18 2016-17
  Advance against Real Estate, Construction Business and Housing 564.94 585.41
  Investment in Mortgage based Securities   -- --
  Exposure to Capital Market     [Rs. lakh]
  Particulars   2017-2018 2016-2017
  Advance against shares and debentures   0.00 0.00
  Investments in shares, debenture & Equity oriented mutual funds* 0.00 0.00
  Total Lending to Capital Market Sectors 0.00 0.00
  (As compiled by Management and relied upon by Auditors)
*Above investment does not include bonds of PSUs & other investments.
  Advances to Directors and their Relatives:   [Rs. lakh]
    2017-2018 2016-2017
  Advances Sanctioned Outstanding % of total Advances Sanctioned Outstanding % of total Advances
  Fund Based 0.75 0.60 0.02% 0.75 0.72 0.03%
  Non-fund Based 0.00 0.00 0.00% 0.00 0.00 0.00%
  Total 0.75 0.60 0.02% 0.75 0.72 0.03%
07. Assets Quality:        
  Sr. Particulars 31-03-2018 31-03-2017
  (1) Net NPAs to Net Advances (%) 0.00% 0.00%
    Percentage of Gross NPAs to Gross Advances (%) 9.12% 11.28%
  (2) NPAs (Gross) 304.36 322.32
  (3) Net NPAs 0.00 0.00
  (4) Movement of Provisions for NPAs    
    Opening Balance 322.32 409.57
    Provision made during the year (For BDDR) 7.26 55.58
    Addition during the year 20.08 0.00
    Write off Excess provision (utilized for write off) 0.00 0.00
    Recovery during the year 38.04 87.25
    Transferred to other fund (as per P & L Appropriation) 0.00 0.00
    Closing Balance 304.36 322.32
  (5) Provision on standard Assets:    
    Provision made during the year 0.00 0.00
    Cumulative Provisions Held at the end of the year 11.00 11.00
  (6) Non-performing assets purchased 0.00 0.00
    Non-performing assets sold 0.00 0.00
  Movement in NPAs:  
  NPAs As on 31.03.2018 As on 31.03.2017  
  Gross NPAs 9.12% 11.28%  
  Net NPAs 0.00% 0.00%  
    Provisions made:  
  (a) Towards NPAs 7.26 lakh    
  (b) Towards Depreciation on Investment 103.28 lakh    
  (c) Towards Standard Assets 0.00 lakh    
  Movement in Provisions:  
  Provisions Movement
  As on 31.03.2018 As on 31.03.2017
  (a) Towards NPAs 532.04 lakh 524.78 lakh
  (b) Towards Depreciation on Investment 159.35 lakh 31.07 lakh
  (c) Towards Standard Assets 11.00 lakh 11.00 lakh
08. Cost of Deposits (Average cost of Deposits): 3.87% (31.03.18) 3.78% (31.03.17)
09. Foreign currency assets & liabilities: Not applicable  
10. Payment to DICGC:    
  Total Premium to Deposit Insurance and Credit Guarantee Corporation (DICGC) paid is Rs. 10.90 lakh in F.Y. 2017-2018.
11. Fixed Assets – Valuation / Revaluation: During the period under present Audit for the year ending on 31.03.2018, the Bank has not revalued any assets and there is no change in method of calculation of depreciation.
12. Penalty imposed by RBI: During the year, there is no penalty imposed by RBI to the Bank.
13. Restructured Accounts:   [Rs. lakh]
  Particulars of Account Restructured
      Housing SME Debt Others
  Standard Advances Restructured Name of Borrower Nil Nil Nil
  Amount Outstanding Nil Nil Nil
  Sacrifice (diminution in the fair value) Nil Nil Nil
  Sub Standard Advances Restructured Name of Borrower Nil Nil Nil
  Amount Outstanding Nil Nil Nil
  Sacrifice (diminution in the fair value) Nil Nil Nil
  Doubtful Advances Restructured Name of Borrower Nil Nil Nil
  Amount Outstanding Nil Nil Nil
  Sacrifice (diminution in the fair value) Nil Nil Nil
  Total Name of Borrower Nil Nil Nil
  Amount Outstanding Nil Nil Nil
  Sacrifice (diminution in the fair value) Nil Nil Nil


  31-03-2018 31-03-2017
Particulars No of A/c Amount No of A/c Amount
Opening balance of amounts transferred to DEAF 2073 57.57 1827 49.92
Add: Amounts transferred to DEAF during the year 311 7.63 249 7.74
Less: Amounts reimbursed by DEAF towards claims 2 0.07 3 0.09
Closing balance of amounts transferred to DEAF 2382 65.13 2073 57.57

 15. Comparative Figures: The previous year’s figures have been regrouped / reclassified wherever necessary to make it comparable with the current year’s figures.

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