17th ANNUAL REPORT 2013–2014 SHIVALIK MERCANTILE CO-OPERATIVE BANK LTD. Regd. Office : 13/1207, Ansari Road, Saharanpur-247001 (U.P.) e-mail : [email protected], web : www.shivalikbank.com Our Branch & ATM Network Branches, BC Offices, ATMs & CDMs in Uttar Pradesh Distt. Saharanpur Head Office & Branch : Hakikat Nagar, Saharanpur-247001 Telefax: (0132) 2726125, 2726147, 9927135550 Ambehta Branch : Main Road, Ambehta-247340 Telefax: (01331) 225311, 9927165550 Ansari Road Branch : 13/1207, Ansari Road, Saharanpur-247001 Telefax: (0132) 2612381, 2612382, 9927145550 Chilkana Road Branch: Chilkana Road, Saharanpur-247001 Telefax: (0132) 2650021, 9690990033 Deoband : Manglore Chowki, G.T. Road, Deoband-247554 Telefax: (01336) 222808, 9568880001 Gangoh Branch : Rambagh Road, Gangoh-247341 Telefax: (01331) 234437, 234438, 9927116660 Nagal Branch : G.T. Road, Nagal Telefax: (01336) 231112, 9690004794 Nanauta Branch : Deoband Road, Nanauta Telefax: (01336) 253125, 9927986125 Rampur Branch : Moh. Mahajanan, Rampur Maniharan Telefax: (01336) 252125, 9927007125 Sarsawa Branch : Main Market, Sarsawa Telefax: (01331) 246125, 9690004994 Sharda Nagar : Near Flyover, Khalasi Line, Saharanpur Mobile : 84770 06125 New Madho Nagar (Coming Shortly) BC Offices: Nakur, Chhutmalpur & Chilkana Distt. Muzaffarnagar Khatauli : Ward No. 8, Ganeshpuri, G.T. Road, Khatouli Mobile : 95689 25000 Muzaffarnagar Branch : South Bhopa Road, Nai Mandi, Muzaffarnagar Mobile : 98374 00037 Distt. Meerut Meerut Branch : C-2/6, Nai Sadak, Shastri Nagar, Meerut-250001 Telefax: (0121) 2604364, 9690563000 BC Offices: Mawana, Hastinapur, Maliyana Distt. Ghaziabad Ghaziabad Branch : Bhatiya Mor, G.T. Road, Ghaziabad-201001 Mobile: 8750037222 Indirapuram Branch : Raison Shopping Complex, Ahinsa Khand II, Indirapuram Ghaziabad Mobile : 95408 12228 Distt. Gautam Budh Nagar Noida Branch : Sector 27, Near Vinayak Hospital, Noida-201301 Telefax: (0120) 2555333,09540407222 Noida Sector 135 : WA 68, Sector 135, Noida Mobile : 99901 06135 BC Offices: Barola, Nithari & Sadarpur Branches, BC Offices, ATMs & CDMs in Madhya Pradesh Distt. Dhar Dhar Branch : Chhota Rajwada, Dhar-454001 (M.P.) Telefax: (07292) 222413 Distt. Indore Indore Branch : Bhagwati Palace, Pooja Dairy Lane, 100 Jaora Compound, Indore-452001 (M.P.) Telefax: (0731) 2704268, 9424024399 BC Offices: Barola, Nithari & Sadarpur CONTENTS Page No. 1. Board of Directors 4 2. Notice of Annual General Meeting 6 3. Message from the Chairman 7 4. Progress of Bank 10 5. Annual Report 11 6. Auditor's Report 17 7. Balance Sheet 19 8. Profit and Loss Account 21 9. Significant Accounting Policies and Notes on Accounts 30 10. Appropriation of Profit for the year 2013-14 41 11. Budget of the Bank for the year 2015-16 42 12. Operational Plan / Targets for 2015-16 42 13. Long Term Perspective Plan 43 14. Progress at a Glance 44 15. Our Profile and Achievements 45 16. Our Customer Service Initiatives 49 BOARD OF DIRECTORS Yashvir Kumar Gupta Chairman Shiv Puran Gulati D. K. Mittal Sudhakar Agarwal Sanjay Gupta Vice Chairman Director Director Director Dr. Sanjeev Mittal Sarvesh Singhal Pradeep Kumar Garg Dr. Kamal Kant Director Director Director Director Anvesh Garg Vijay Kumar Dhingra Satyasheel Rao Ram Sudhar Director Director Director Former DGM RBI Special Invitee Director 4 DIRECTORS OF THE BANK S. Address Name Designation No. Office Residence 1 Sh. Yashvir Kumar Gupta Chairman Devendra Service Station, 13/1207, Ansari Road, Saharanpur Ambehta, Distt. Saharanpur Tel.: (0132) 2644586 Tel. : (01331) 225204, 225206 Mob.: 9837050500 2 Sh. Shiv Puran Gulati Vice-Chairman City Railway Booking Agency 'Ashirwad' Gill Colony, Saharanpur Railway Road, Saharanpur Tel.: (0132) 2727228, 2722638 Tel.: (0132) 2724346 2643862 Mob.: 9719217802 3 Sh. D. K. Mittal Director B-71, Sector 44, Noida B-71, Sector 44, Noida Distt. G.B. Nagar 201301 (U.P.) Distt. G.B. Nagar 201301 (U.P.) Tel.: (0120) 4222439 Tel.: (0120) 4222439 4 Sh. Sudhakar Agarwal Director Indian Herbs Research & Supply Co. Ltd. B-85 Avas Vikas Colony Sharda Nagar, Saharanpur Delhi Road, Saharanpur Tel.: (0132) 2727920 Tel.: (0132) 2760931, 9837010385 5 Sh. Sanjay Gupta Director 15 Kishore Bagh, Delhi Road 15, Kishore bagh, Delhi Road Saharanpur Saharanpur Chartered Accountant Tel.: (0132) 2762856, 2763530 Tel.: (0132)2762856, 2763530 Mob.: 9837029705 6 Dr. Sanjeev Mittal Director Janakpuri Chowk, Dehradun Road Janakpuri Chowk, Dehradun Road Saharanpur Saharanpur Tel.: (0132) 2661399 Mob.: 9837058835 7 Sh. Sarvesh Singhal Director Opp. H.D.F.C. Bank, 1st Floor 5 Phase-II Pant Vihar, Saharanpur Advocate Court Road, Saharanpur Tel.: (0132) 2765464 Mob.: 9837260747 8 Sh. Pradeep Kumar Garg Director Daas Service Station Moh. Chahparas Deoband, Distt. Saharanpur Deoband, Distt. Saharanpur Tel.: (01336) 222253, 222248 Tel.: (01336) 222348 Mob.: 9837365258 9 Dr. Kamal Kant Director Moh. Baburai Moh. Baburai, Gangoh Gangoh, Distt. Saharanpur Distt. Saharanpur Tel.: (01331) 232225 Tel.: (01331) 232225, 9412557048 10 Sh. Anvesh Garg Director Om Rice Mill, Main Road Moh. Bazar Kala Ambehta, Distt. Saharanpur Gangoh, Distt. Saharanpur Tel.: (01331) 225221 Tel.: (01331) 232055, 9412557239 11 Sh. Vijay Kumar Dhingra Director C/o Jai Bharat Auto Engineers Parshvnath Majestic Floors T-II G.T. Road, Near Flyover, Ghaziabad 203-A Indirapuram, Ghaziabad Tel.: (0120) 4165463, 9311585595 Mob.: 9310461900 12 Sh. Satyasheel Rao Director Satya Villa, Ratlam Road, Satya Villa, Ratlam Road, Naugaon, Dhar (M.P.) Naugaon, Dhar (M.P.) Tel.: (07292) 233370 Tel.: (07292) 233370 13 Sh. Ram Sudhar Spl. Invitee 1/188 Viram Khand 1/188 Viram Khand Gomti Nagar, Lucknow Gomti Nagar, Lucknow Director Tel.: (0522) 2394642 Tel.: (522) 2394642 5 A Bank for Your Welfare NOTICE FOR ANNUAL GENERAL MEETING Dear Shareholder, Annual General Meeting of the Bank is scheduled to be held on Sunday, 24 August 2014 at 10:00 am at Hotal Oasis, Delhi Road, Saharanpur to transact the following business : Agenda 1. To confirm the proceedings of last AGM. 2. To consider and approve the Annual Report for 2013-14. 3. To consider and approve the Balance Sheet & Profit & Loss Account of the Bank for 2013-14. 4. To consider the report of Statutory Auditors and compliance thereof for the year 2013-14. 5. To appropriate net profit and declare dividend as recommended by the Board of Directors for the year 2013-14 6. To review actual utilization of reserves and other funds during the year 2013-14. 7. To take note of the loans and advances outstanding against Directors and their relatives during the year 2013-14. 8. To appoint Statutory Auditors for 2014-15 and to authorize the Board of Directors to fix their remuneration. 9. To consider and approve the Budget for 2015-16. 10. To consider and approve the long term perspective plan of the bank and the annual operation plan for 2015-16. 11. To present the list of employees who are relatives of members of the board or of the Chief Executive. 12. To consider amendment in bye-laws of the bank for expanding bank's area of operation to the states of Uttarakhand, Himachal Pradesh, Haryana, Punjab, Chandigarh, Delhi, Rajasthan & Madhya Pradesh, subject to statutory approvals. 13. Other items if any, with the approval of Chairman. Dated : 02-08-2014 Place : Saharanpur - Sd - (Chief Executive Officer) 6 A Bank for Your Welfare MESSAGE FROM THE CHAIRMAN Dear Shareholders, It is a matter of great pleasure for the Board, all officers of the Bank and myself to welcome you to the 17th Annual General Meeting of Shivalik Mercantile Coop. Bank Ltd. In this concluded year of 2013-14, the bank has moved ahead on the path of growth with confidence and determination. In this year, bank renewed its commitment to support small depositors and small borrowers. For depositors, we opened up our gates wide and with Basic Savings Bank accounts, Cash Deposit Machines and ATM cards. 2013-14 at a Glance Keeping this objective in mind, we also started opening B.C. offices in Several new branches / BC offices opened. various districts. Many such BC offices have already been opened in All branches / BC offices Indore, Noida, Meerut and Saharanpur and many more (Chhhutmalpur, are now equipped with ATM cum CDMs. Chilkana, Maliana (Meerut) and Hastinapur are in the pipeline. World class CBS software Not to be left behind new branches also came up at various places. We arranged for our bank. opened branches in Indirapuram, Shardanagar, Muzaffarnagar and also ATM cum Debit card facility makes us first co- one at Khatauli during the year. All of these branches have been received oprative bank in North well by the residents of these cities and hold good promises for their bright India offering this facility. Our card can now be future. One more branch at New Madho Nagar, Saharanpur is almost ready used for shopping any and may start functioning by the time this booklet reaches your hands. where in India. All of our branches and BC offices are now equipped with state of the art Cash Deposit Machines (CDMs). The CDMs accept cash deposits into accounts, generate computerized receipts for the same, accept cheques for collection and are ATM also. Thus, our customers are now able to deposit their cash and cheques even after the branches are closed in the evening. The Bank has generated a lot of goodwill among its constituents for bringing in this technological advancement in its services. Net worth of the Bank has crossed Rs. 50 crore this year and this is going to help the bank in many important ways viz. a viz. Reserve Bank of India who would now be granting permission to us for many services which were not permitted till now. In terms of Net Profit (Profit before tax / after tax), the Bank has registered the most spectacular 7 A Bank for Your Welfare performance. While last year, our profit before tax was 312.04 lacs, this time we have posted 755.61 lacs - more than 100% growth in a year! With a view to manage widely spaced branches and offices in Uttar Pradesh and Madhya Pradesh and to assist them in their functioning, the bank is looking forward to open a Regional office at Noida.