AUDITOR CERTIFICATE

JAIN SINGH & ASSOCIATES

CHARTERED ACCOUNTANTS

Shop 36, 2 nd Floor, K.C. Complex, Opp. Daulat Bagh, Ajmer (Raj.) - 305001

Tele - +(91)81049-23212



AUDITOR CERTIFICATE


We the undersigned auditor of Jalore Nagrik Sahakari Bank Ltd., Jalore report on the Balance sheet as on 31st march 2019 and profit and loss account for the year ended on that date.

We have examined the foregoing Balance sheet of Jalore Nagrik Sahakari Bank Ltd., Jalore 31st march 2019 and profit and loss account for the year ended upon that date with account relating thereto :-

In our opinion subject to our audit report, the balance sheet is full and fair and containing all the necessary particulars and is properly drawn up so as to exhibit a true and fair view of the affairs of the bank according to the best of our information have been given to us and have been found satisfactory. Where we have called for any explanation such explanation and information have been given to us and have been found satisfactory.

The profit and loss account shows a true balance of profit for the year concerned by such account subject to our audit report and notes to accounts.In our opinion the balance sheet and the profit and loss account are drawn up in conformity with law.

In our opinion Books of account have been kept by Bank as required by law



Place- Jalore For M/s Jain Singh & Associates

Date- 29 Aug 2019 Chartered Accountants

FRN 017795C




(Arihant Jain)

Partner

M. No. 421751

UDIN : 19421751AAAAAJ8888




JAIN SINGH & ASSOCIATES

CHARTERED ACCOUNTANTS

Shop 36, 2 nd Floor, K.C. Complex, Opp. Daulat Bagh, Ajmer (Raj.) - 305001

Tele - +(91)81049-23212

INDEPENDENT AUDITOR’S REPORT

For the year ended 31.03.2019

To,
The Members,
Jalore Nagrik Sahakari Bank Ltd.,

Head Office – Jalore

Report on Financial Statements


  1. We have audited the accompanying financial statements of Jalore Nagrik Sahakari Bank Limited as at 31 March 2019, which comprise the Balance Sheet as at 31 March 2019, and the Profit and Loss Account, and the Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information. The returns of all branches audited by us are incorporated in these financial statements in capacity of statutory auditors.


Management's Responsibility for the Financial Statements


  1. Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Bank in accordance with provisions of the Banking Regulations Act, 1949, the guidelines issued by the Reserve Bank of India and the guidelines issued by The Rajasthan Co-operative Societies Act, 2001 and The Rajasthan State Co-operative Societies Rules, 2003 (as applicable) and accounting principles generally accepted in India so far as applicable to Banks. This responsibility includes the design, implementation and maintenance of internal controls relevant to the preparation and presentation of the financial statements that are free from material misstatement, whether due to fraud or error.


Auditor's Responsibility


  1. O

    2

    ur responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with 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 misstatements.


  1. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgement, including the assessment of the risks of material 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 appropriate in the circumstances, but not for the purpose of expressing an opinion on effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.


  1. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.


Opinion

  1. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements together with the Notes thereon give the information required by the Banking Regulation Act, 1949, The Rajasthan Co-operative Societies Act, 2001 and The Rajasthan State Co-operative Societies Rules, 2003 and guidelines issued by Reserve Bank of India and The Rajasthan State Registrar of Cooperative Societies, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India.

(a) In the case of the Balance Sheet, of state of affairs of the Bank as at
31st March 2019;

(b) In the case of the Profit and Loss Account, of the profit/loss for the year ended on 31st March 2019; and

(c) In the case of the Cash Flow Statement, of the cash flows for the year ended on 31st March 2019.



Report on Other Legal & Regulatory Requirements



  1. The Balance Sheet and the Profit and Loss Account have been drawn up in Forms "A" and "B" respectively of the Third Schedule to the Banking Regulation Act, 1949 and the The Rajasthan State Co-operative Societies Act, 2001, and rules made there under.



We report that:

  1. We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purpose of our audit and have found to be satisfactory.

  2. In our opinion, proper books of account as required by law have been kept by the Bank so far as it appears from our examination of those books and proper returns adequate for the purposes of our audit have been maintained at the branches/offices.

  3. The transactions of the Bank which came to our notice have been within the powers of the Bank.

  4. The Balance Sheet and Profit and Loss Account dealt with by this report are in agreement with the books of account and the returns.









  1. In our opinion, the Balance Sheet and Profit and loss account comply with the applicable accounting standards issued by ICAI to the extent applicable.

  2. To the best of our belief and according to information and explanations given to us, the transaction of the bank which have come to our notice, have been within the competence of the bank and are in compliance with RBI guidelines as applicable to the bank.

  3. To the best of our belief and according to information and explanations given to us, there has been no material impropriety or irregularity in the expenditure or in the realization of money due to the bank;




For Jain Singh & Associates

Chartered Accountants

Firm Registration No.:- 017795C



Date: - 29 Aug 2019

Place: - Jalore (Arihant Jain)

Partner


M. No. 421751

UDIN : 19421751AAAAAJ8888





















JAIN SINGH & ASSOCIATES Shop 36, 2 nd Floor, K.C. Complex

Chartered Accountants Opp Daulat Bagh, Ajmer (Raj.)

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PRINCIPAL ACCOUNTING POLICIES

(ANNEXED TO ACCOUNTS FOR THE YEAR ENDED 31 ST MARCH, 2019)


  1. The financial statements have been prepared under historical cost basis and in confirmation to the statutory provisions and Practice prevailing in India.

  2. ADVANCES

  1. All advances have been classified as per RBI guidelines into four categories i.e.

  1. Standard Assets,

  2. Sub-Standard Assets,

  3. Doubtful Assets, and

  4. Loss Assets

  1. Loan loss provisions are made on both non-performing as well as performing assets subject to the minimum provisioning levels prescribed in the extsnt RBi guidelines, which are as follows :

Provision has to be made on all NPA Accounts on outstanding, net of interest, not realized and also on Standard Assets, at the following rates :-

  1. Standard Assets at 1.00% on Commercial Real Estste (CRE) sector and 0.40% on all other loans and advances.

  2. Sub-Standard Assets at 10% of the outstanding.

  3. Doubtful Assets at 20%, 30%, and 100% of the secured portion based on the number of years the account remained as ‘Doubtful’ and at the rate of 100% of the outstanding for unsecured portion.

  1. INVESTMENTS

The Bank classifies and values its investments, as per RBI guidelines, as follows :

  1. The Investment Portfolio is classified into three categories i.e. (i) Helf to Maturity (HTM), (ii) Held for trading (HFT) and (iii) Available for sale (AFS).

  2. Bais of Classification

A) Held for Trading (HFT) :

Investment principally held for resale within 90 days from the date of purchase.

  1. Held for Maturity (HTM)

Investment intended to be held till maturity.

  1. Available for Sale (AFS)

Investment not classified in i) & ii) above.

  1. Valuation

  1. Held to maturity (HTM) :-

At cost subject to amortization of premium over residual maturity.

  1. Held for Trading (HFT) and Available for Sale (AFS) :-

Individial scrip are marked to market and depreciation/appreciation is aggregated for each classification indicated under b) below, separately for AFS and HFT. Net depreciation, if any, is provide for. Net appreciation, if any, is ignored.

The Market Value for the purpose of valuation in HFT/AFS, is arrived at as follows:



  1. Quoted : At market price as available from trades/quotes on Stock Exchange, SGL a/c transactions, price list of RBI, price put out by FBIL/PDAI.

  2. Unquoted :

  • Government Securities :

-- Central Govt securities at price/YTM rates put out by FBIL/PDAI.

-- State Govt Securities applying appropriate mark-up over the YTM rates of Central Govt Securities of equivalent maturity put out by FBIL/PDAI.

  • Other Approved Securities :

-- Applying appropriate mark-up over the YTM rates of Central Govt Securities of equivalent maturity put out by FBIL/PDAI.

  • Share of Co-operative Institute at face value if dividends are regularly received, otherwise ` 1 per Institution. Other shares at braek-up value if not more than 1 year bond Balance sheet is available or ` 1 per Institution.

  • PSU Bonds : Applying appropriate mark-up, graded according to the rating assigned, over the YTM rates of pproved Securities of Central Govt Securities of equivalent maturity put out by FBIL/PDAI.

  • Others : Investment in debt/money market Mutual Fund units and fixed maturity plans (Mutual Fund units) on the basis of latest repurchase price if available or declared by the Fund otherwise at NAV/cost.

As the Bank did not, enter into transactions of sale of its Investments, none of its purchase were placed in the “Held for Trading” category, during the year.


  1. FIXED ASSETS

  1. Fixed Assets are stated at cost less depreciation.

  2. Depreciation is provide for on written down value method as prescribed in Income-tax Act 1961. However, in case of Computers and related hardware purchased after 31.03.2003, the depreciation is provided on straight-line method, @33.33% p.a., as per RBI guidelines.

  1. RECOGNITION OF INCOME

Income is accounted for on accrual basis except in the following cases :

  1. Interest on Non-Performing Assets is recognized on realization basis as per RBI guidelines.

  2. Rent on Safe Deposit lockers, income receivable on outstanding Mutual Fund unit and dividends are accounted for, on realization.

  1. RECOGNITION OF EXPENDITURE

Expenses are accounted for on accrual basis except in the following cases :

  1. Employee Superannuation benefit expenses and Group Insurance paid to LIC of India are accounted on the basis of the actual payment made.

For Jalore Nagrik Sahakari Bank Ltd. For M/s Jain Singh & Associates

Chartered Accountants

FRN 017795C

Phau Lal Songara Arihant Jain

(C.E.O.) (Proprietor)

M.NO. 421751

UDIN : 19421751AAAAAJ8888




JAIN SINGH & ASSOCIATES

CHARTERED ACCOUNTANTS

Shop 36, 2 nd Floor, K.C. Complex, Opp. Daulat Bagh, Ajmer (Raj.) - 305001

Tele - +(91)81049-23212

JALORE NAGRIK SAHAKARI BANK LTD.

HEAD OFFICE – JALORE


ANNEXURE TO THE BALANCE SHEET FOR THE YEAR ENDED 31 ST MARCH 2019

Notes on Accounts :-

Details regarding disclosure norms prescribed for UCBs (Rs. In Lakh)

  1. Capital to Risk Weight Asset Ratio(CRAR) - 17.44 %

  2. Movement of CRAR i.e., CRAR as on Balance Sheet date for the current year vis-a vis previous year - (17.44-17.99) = (-)00.55%

  3. Investments:

    1. & b) Investment are as under :

      Classification

      Face Value

      Book Value

      Market Value

      (A) Held to Maturity




          1. Central & State Govt Securities

      6613.00

      6403.02

      - -

          1. PSU Bonds

      0.00

      0.00

      - -

          1. Shares

      0.11

      0.11

      - -





      Total

      6613.11

      6403.13

      - -

      (B) Available for Sale (AFS)

      4524.00

      4482.61

      4692.16

      (C)Held for Trading (HFT)

      0.00

      0.00

      0.00

      Grand Total ( A+B+C)

      11137.11

      10885.74

      4692.16

    2. Details of issuer composition of non-SLR investment and non performing non-SLR investment. (UBD.CO.BPD.(PCB CIR NO. 45/16.20.00/2003-04 dated April 15, 2004, and UBD.(PCB).BPD.CIR.NO.14/16.20.00/2007-08 dated September 18, 2007)

      • Issuer Composition of Non SLR Investments, as on 31.03.2019

        No.

        Issuer

        Amount

        Extent of 'below investment grade Securities'

        Extent of 'unrated securities'

        extent of 'unlisted securities'

        (1)

        (2)

        (3)

        (4)

        (5)

        (6)

        1

        PSUs





        2

        Fls





        3

        Public Sector Banks





        4

        Mutual Funds

        2600.00




        5

        Others




        6

        Provision Held towards Depreciation





      • Non-performing Non SLR Investment

Particular

Amount

(` in Crore)

Opening Balance

Nil

Additions during the year since 1st April

Nil

Reduction during the above period

Nil

Closing Balance

Nil

Total Provisions held

Nil

  1. Advance against real estate, construction business, housing - 779.28

  2. Advance against shares & debentures - --NIL--

  3. Advance to directors, their relatives, companies/firms in which they are interested :

    1. Fund-based. - --NIL--

    2. Non-fund based (Guarantees, L/C etc.) - --NIL--

  4. Cost of Deposits : Average cost of deposits - 6.39%

  5. NPAs:

    1. Gross NPAs: - ( Rs. 1532.75 Lacs) 10.35%

    2. Net NPSs: - ( Rs. 439.45 Lacs) 03.20%

  6. Movement in NPAs i.e., Gross and net NPSs as on Balance Sheet date for the current year vis-a-vispervious year. Net NPSs should be arrived at after deduction provisions held, interest suspense account etc.

    1. Gross NPA - (1532.75-880.91) = (+ ) 651.84 (+74.00%)

    2. Net NPA - (439.47-0.00) = (+ ) 439.47 (+100.00%)

  7. Profitability

    1. Interest income as a percentage of working funds - 10.85%

(Total Interest+Discount Income/Working Fund)

    1. Non-interest income as a percentage of working funds- 0.42%

(Total Other Income/Working Fund)

    1. Operating profit as a percentage of working funds - 1.77%

    2. Return on Assets - 11.27%

    3. Business (Deposits+Advances) per employee - 453.50

    4. Profit per employee - 2.52

  1. Provision made towards NPAs, depreciation in investment, Standard Assets

NPA Provision - 430.22 Standard Assets - 60.31 IDR – 0.00 Total – 490.53

  1. Movement in provision: [i.e., Provision as on Balance Sheet date for the current year (e.g.March 31, 2019, vis-a-vis previous year (e.g. March 31, 2018)

    1. Towards NPAs - (430.22-223.24) = (+)206.98

    2. Towards depreciation on investment - (0.00-84.55) = (-)84.55

    3. Towards standard assets – (60.31-57.71) = (+)2.60

  2. Foreign currency assets & liabilities:(if applicable) - -- N.A.--

  3. Payment of DICGS Insurance Premium:

UCBs are required to disclose whether insurance premium has been paid up to date to DICGC, indicating arrears, if any. (UBD.No.BP.38/16.45.00/2002-03 dated March 06, 2003)

Rs-(17.40+18.01) = 35.41 Lakh




  1. Penalty imposed by RBI:(UBD.PCB.Cir.no.40/16.45.00/2004-05 dated March 01, 2005

UCBs are also require to disclose the penalty imposed by RBI in the 'Notes on Accounts' to their Balance Sheet

-- nil –


  1. Restructured Accounts

(Rs. In Lac)

Particulars of Accounts Restructured



Housing Loan

SME Debt Restructuring

Others

Standard Advances Restructured

Number of Borrowers

--nil--

--nil--

--nil--

Amount Outstanding

--nil--

--nil--

--nil--

Sacrifice (diminution in the fair value)

--nil--

--nil--

--nil--

Sub Standard Advances Restructured

Number of Borrowers

--nil--

--nil--

--nil--

Amount Outstanding

--nil--

--nil--

--nil--

Sacrifice (diminution in the fair value)

--nil--

--nil--

--nil--

Doubtful Advances Restructured

Number of Borrowers

--nil--

--nil--

--nil--

Amount Outstanding

--nil--

--nil--

--nil--

Sacrifice (diminution in the fair value)

--nil--

--nil--

--nil--

Total

Number of Borrowers

--nil--

--nil--

--nil--

Amount Outstanding

--nil--

--nil--

--nil--

Sacrifice (diminution in the fair value)

--nil--

--nil--

--nil--

Detail of Applications for restructuring pending/under process where the restructuring packages have not yet been approved –

Number Amt. in Lacs



  1. Detail of revaluation of fixed assets owned by the Bank –

Particulars of Fixed Assets Origunal cost Revaluation

Nil Nil Nil


(Fixed assets owned by the Bank where not revalued and no appreciation of any fixed assets took place. Depreciation on fixed assets was applied on written down method and there there was no change in the method of depreciation for a particular class of assets .




  1. Depositor Education and Awareness Fund Scheme, 2014

(Amounts in Rs. Crore)


Current year

Previous year

Opening balance of amounts transferred to DEAF

0.23

0.23

Add: Amounts transferred to DEAF during the year

0.00

0.00

Less: Amounts reimbursed by DEAF towards claims

0.00

0.00

Closing balance of amounts transferred to DEAF

0.23

0.23

  1. Loan loss provision :

Total Provision required, as per RBI guidelines, towards Non-Performing as well as Standard Assets, as on 31.03.2019 is ` 490.53 Lakh. Though the existing provision at ` 1000.85 Lakh is higher, in order to build up sufficient long range cushion against any unforeseen future impairments, a further provision of ` 152.75 Lakh has been made from out of the profit for the year. Summary of loan loss provisions is as under :

Particular

Bad & Doubtful Reserve

Contingent Provision against Standard Assets

Total Reserve for Loans

Reserve as on 31.03.2019

1093.30*

60.30

1153.60

Less Provision Required as per RBI Norms

430.22

57.80

488.02

Balance : (Excess Provision)

663.08

2.50

665.58

* The bank had written off Bad Debt of ` 11.43 Lakh out of BDDR (Under OTS scheme issued by RCS).


  1. Interest Receivable : 31.03.2018 31.03.2019

On Invetsment

154.89

151.56

On Fixed Deposit

229.50

180.20

On Standard Advances

20.56

77.39


  1. Provision & Contingencies : 31.03.2018 31.03.2019

Income Tax

96.35

132.00

Provision for Standard Assets

7.07

2.60

Provision for NPA & BDDR

95.32

136.58

Provision for contingent Liability

0.00

7.38

Provision for IDR

84.55

96.22





For M/s Jain Singh & Associates

Chartered Accountants

FRN 017795C


(Arihant Jain)

Proprietor

M. No. 421751

UDIN : 19421751AAAAAJ8888

Date : 29 Aug 2019








(Harish Ojha)

Manager(Admi.)







(P.L. Songara)

C.E.O.






(Raju Choudhary)

Vice Chairman






(CA Nitin Solanki)

Chairman