DIRECTORS’ REPORT - Lakshmi Vilas Bank 2004... · 2019-06-05 · tie-ups with Reliance Capital Asset Management Limited & Franklin Templeton Asset Management (India ) Private Limited

ANNUAL REPORT 2004-05 1

TO THE MEMBERS

Your Directors have great pleasure in presenting the

Seventy Eighth Annual Report on the business and

operations of your Bank together with the Audited Accounts

for the year ended 31st March, 2005.

PERFORMANCE

During the year under review, your Bank attained

business turnover of Rs.5814 crores with total income of

Rs.336.52 crores and operating profit of Rs.54.71 crores.

The Bank could register a Net Profit of Rs.3.34 crores

DIRECTORS’ REPORT

only as compared to Rs.41.05 crores in the previous year.

The fall was essentially due to the provision that had to

be made to cover diminution in value of Government

Securities due to steep rise in yield from 5.16% as on

31.03.2004 to 6.68% as on 31.03.2005. As a matter of

prudence, the Bank maintained an Investment Fluctuation

Reserve of Rs.35.99 crores (7.55% of the investments

held in the HFT and AFS categories, which was much

higher than the figure of 5% stipulated by RBI).

A new product called “Lakshmi Savings Suraksha” has

been launched at select branches of the bank, which is a

value added Savings account that gives life protection to

the account holders under a group insurance package in

association with Aviva Life Insurance . The said savings

product which covers Life Risk and Double Accident

Benefit to the eligible members to the extent of Rs.1.00

lakh for Life Risk and Rs.2.00 lakhs for Accident Benefit

is presently available at Metro and Urban branches.

In line with recommendations of Management Consultants

M/s Deloitte Touche Tohmatsu three Strategic Business

Units (SBU) have been formed by re-organising top

management structure to achieve effective and focused

direction across products/ Business.

APPROPRIATIONS

Appropriations from operating profit have been effected

as detailed below:

Particulars (Rs. in crores)For the year ended

31st March 31st March2005 2004

Operating Profit 54.71 91.00

Provisions and contingencies 51.37 49.95

Net Profit 3.34 41.05

Profit brought forward 0.22 0.09

Amount available for appropriation 3.56 41.14

Transfer to:

Statutory Reserve 0.85 14.00

Capital Reserve 2.49 5.43

Investment Fluctuation Reserves 0.00 13.75

Other Reserve 0.00 1.25

Proposed Dividend 0.00 5.76

Corporate Dividend Tax 0.00 0.73

Balance of Profit Carried forward 0.22 0.22


Your bank successfully raised its Tier I capital by way of

Rights issue priced at Rs.55/- per share (payable on

application – Rs 25/- per share and on allotment Rs.30/-

per share) in the ratio of 7: 10. With this rights issue, the

net worth of the Bank increased to Rs.256.86 crores as

on 16.07.2005. The directors of your Bank thank you for

your overwhelming support for the rights issue of the

Bank.

LISTING AGREEMENT WITH STOCK EXCHANGE

As you are aware, your Bank’s shares were initially listed

on the National Stock Exchange and Madras Stock

Exchange. However in terms of the resolution passed by

shareholders of the Bank in the Annual General Meeting

held on 29.07.2004, the Bank’s shares were since got

de-listed from the Madras Stock Exchange as such the

equity shares continue to be listed and traded in the

National Stock Exchange which has trading terminals all

over the country.

RESOURCES AND LENDINGS

The overall performance during the financial year 2004-05

remained good. The Bank’s total business crossed

Rs.5814 crores. Aggregate deposits reached Rs.3495.92

crores with net accretion of Rs.200.11 crores. The Bank’s

credit portfolio, net of provisions, increased to Rs.2317.71

crores from Rs.2038.70 crores in the previous year, a rise

of over Rs.279 crores.

DIVIDEND

In order to retain the entire earnings within the system

thereby, and as a matter of abundant prudence, your

Directors have proposed that the Bank may not declare

any dividend for the year 2004-05.

NETWORTH AND CAPITAL ADEQUACY

Your Directors have proposed net transfer of Rs.3.34

Crores to reserve, which would increase the net worth of

your bank from Rs.226.64 Crores to Rs.229.98 Crores.

Your Bank has raised by way of Unsecured, Redeemable,

Non-convertible Subordinated bonds - Series (IV A –

Rs.19 crores allotted on 31.03.2005 & IV B- Rs.11 crores

allotted on 31.05.2005) rated “A” by CARE. Instruments

with this rating are considered upper medium grade

instruments and have many favourable investment

attributes indicating adequate safety for principal and

interest.

Your Bank’s Capital Adequacy Ratio (CRAR) stood at a

healthy 11.32 % as on March 31, 2005, well above the

regulatory minimum of 9.00% stipulated by RBI.

The Tier-I and Tier-II components of Capital Adequacy

Ratio were 5.67 % and 5.65% respectively as on March

31, 2005.


Advances under Priority Sector during the year were at

Rs.950.43 crores, constituting 41% of the adjusted net

bank credit, as against the stipulated norm of 40%.

QUALITY OF LOAN ASSETS

As a result of concerted efforts initiated on the recovery

front, the gross NPAs reduced from 10.15% in the

previous year to 7.88% and the net NPAs from 5.40%

to 4.98%.

INVESTMENT OPERATIONS

In order to insulate the Government securities portfolio

from future interest rate risk and adverse market

movements, the Bank has opted to prune the excess

securities held. Besides, for the same purpose, the Bank

has shifted Government securities worth Rs.549.23 crores

from AFS category to HTM category, incurring depreciation

to the tune of Rs.35.75 crores.

The Bank’s total investments as at 31st March 2005 were

Rs.1180.86 crores.

FOREX OPERATIONS

The Bank’s merchant turnover in foreign exchange

transactions were Rs.1421.65 crores as compared to

Rs.1402.29 crores during the previous year.

NETWORK EXPANSION

The bank has opened one new branch at Anna Nagar,

Chennai during the year and two existing branches

namely C.Pudupatty and Anbil have been converted into

satellite offices. The bank has 225 branches as on

31.03.2005 spread across 9 states and Union Territory


of Pondicherry including 5 satellite branches. Plans are

afoot to open 6 more at different centres for which licences

from RBI have been obtained.

INFORMATION TECHNOLOGY

During the year a wide area network (WAN) has been

launched, inter connecting branches at 30 locations,

initially. The Bank has plans to network all the branches

in phases, so that the latest technology enabled services

and products can be extended to our customers.

A pilot project of launching Core Banking Software (CBS)

at six branches has been completed. On examining the

efficacy thereof a comprehensive view in transforming

your Bank into a State-of-the-Art Technology drive will

be taken. The Bank’s in-house developed Total Branch

Automation (TBA) software LBS2001 was enhanced to a

contemporary technical platform. The number of Totally

Computerized Branches stand increased to 150, by an

addition of 50 branches during the year.

An ATM Cell has been created to cater to the ATM services

extended by the Bank. Real Time Gross Settlement

system ( RTGS ) has been implemented and made live at

our Investment Cell, Mumbai and all interbank

transactions have been, since migrated to the RTGS

system.

Several in-house utilities software have been developed

and provided to branches, making them more productive

and efficient. An Integrated Management Information

Systems (IMIS) has been introduced at 3 pilot branches.

HUMAN RESOURCES

Appreciating and recognizing the value of Human

resources, the Bank continued to focus on training its

employees on a continuing basis on-job and through

training programmes conducted with internal and external

faculty to keep them abreast of the changing competitive

environment. As on 31st March 2005, the Bank had a

staff strength of 1928 including 765 officers. Business

per employee increased to Rs.308.00 lakhs from

Rs.276.00 lakhs as at the previous year. During the year,

as part of the continuous efforts of the Bank to motivate

and reward performing employees, 88 employees in

different cadres, were promoted. Bank has also directly

recruited the required personnel for appropriate

placements during the year. The relationship with staff

has been cordial.

FEE BASED VENTURES

The bank in tune with the market demand and as value

addition to customers has diversified into undertaking

distribution of Life Insurance products as Corporate Agent

for AVIVA Life Insurance, one of the world’s largest Life

Insurance Company, which is yet another milestone in

its commendable history. 45 trained personnel of the

Bank in Bancassurance are dealing with AVIVA’s

customized life insurance products. During the year under

perusal, about 4200 proposals have been procured for

an insurance coverage of over Rs.41 crores. The Bank

has collected a gross insurance premium of around

Rs.10.68 crores and received a commission payment of

Rs.86.13 Lakhs, in the first year of operation. The bank

has plans to expand insurance marketing in Maharastra,

Gujarat and Karnataka shortly.

Subsequent to the Bancassurance tie-up with

M/s. Royal Sundaram Alliance Insurance Co. Ltd. for


non-life business, our bank is instrumental in collecting

a gross premium (non-life) of Rs.1.45 crores out of our

referrals, thereby earning Rs. 16.55 lakhs in the FY 2004-

05. Plans to distribute personal non-life products such

as Health Insurance, Accident Insurance , Household

Insurance etc., in the near future are under active

consideration.

As for Mutual Fund, at present our Bank has distribution

tie-ups with Reliance Capital Asset Management Limited

& Franklin Templeton Asset Management (India ) Private

Limited. Out of these cross selling activities, we could

mobilise Rs.1.02 crores and earn a commission of Rs. 2.23

lacs in the FY 2004-05. We plan to have a distribution

tie-up with more such reputed mutual fund to achieve a

quantum jump in our parabanking activities.

RISK MANAGEMENT

The steps initiated by the bank during the previous years

in the area of risk management continued to receive

focused attention, in tune with the regulatory guidelines

and dynamic business scenario. The bank has taken pro-

active steps to implement the best risk management

practices, covering Credit Risk, Market Risk and

Operational Risk, in line with strategic perspective, size

and complexities of bank’s business.

The Integrated Risk Management Policy, highlighting the

risk management philosophy, risk identification criteria,

systems for measurement, monitoring and control of

risk, risk quantification techniques, risk mitigation and

regulatory compliance which was put in place during the

previous year has been modified and fine-tuned to meet

the dynamic changes in business environment and

corporate objectives.

Pro-active steps have been taken to introduce a

framework for parallel calculation of Economic Capital as

per Basel II norms likely to be applicable from 31/03/06,

and to ensure compliance therewith.

DIRECTORS

Mr. C. Krishnakumar resigned from the Board on the

31st March,2005. Mr. A. Krishnamoorthy then Chairman

and Chief Executive Officer on his resignation , has been

relieved on 15.04.2005. Mr. V.N. Krishnamurthy resigned

from the Board on 30th August,2005. The directors place

on record their appreciation of the valuable services

rendered by Mr C.Krishnakumar, Mr. A. Krishnamoorthy

and Mr. V.N. Krishnamurthy during their tenure.

Mr. R. M. Nayak has been co-opted as an Additional

director in the meeting of the Board of Directors held on

20th June,2005 pursuant to section 260 of the Companies

Act,1956. Subsequently he assumed as Chairman and

Chief Executive Officer of the Bank effective from 20th

June,2005 as per the approval of Reserve Bank of India.

Mr. V. Umasankar was appointed as additional director

on the Board with effect from 30th August 2005 pursuant

to Section 260 of the Companies Act, 1956.

Mr. K. Balaji was appointed as additional director on the

Board with effect from 30th August 2005 pursuant to

Section 260 of the Companies Act, 1956.

Mr. M. P. Shyam and Mr. D.L. Suresh Babu, Directors are

due to retire by rotation at the ensuing Annual General

Meeting and being eligible, offer themselves for

re-appointment.

AUDITORS

The statutory auditors M/s. S.Viswanathan, Chartered

Accountants, Chennai and M/s.Abarna & Ananthan,

Chartered Accountants, Bangalore are retiring at this

Annual General Meeting. M/s Abarna & Ananthan,

Chartered Accountants, Bangalore had been the joint

Statutory Auditors of your Bank since 2001 completed

consecutive 4 years period, they cannot be considered

for re-appointment as per the extant regulatory guidelines

of RBI. Your directors therefore proposed to appoint

M/s. N.B. Shetty & Co., Chartered Accountants, Mumbai

and proposed to re-appoint M/s S.Viswanathan,

Chartered Accountants,Chennai as the joint Statutory

Auditors of the Bank at the forthcoming Annual General

Meeting of the Bank as approved by Reserve Bank of

India under Section 30 (1A) of the Banking Regulation

Act, 1949.


Your directors place on record their appreciation for the

professional services rendered by M/s. Abarna &

Ananthan, as the Statutory Auditor of the Bank.

The statutory audit of the Bank was carried out by

M/s. Abarna & Ananthan, Chartered Accountants,

Bangalore and M/s. S. Viswanathan , Chartered Accountants,

Chennai whose report is attached herewith. The Statutory

Central and Branch Auditors audited all the branches and

other offices of the Bank.

Explanations is offered below on the auditors’ reference

in their report vide

I) Point no.11 a) Note no. 1(b) of Schedule 17 to the

accounts regarding the effect of adjustments arising

in tallying of balances in the accounts as per General

Ledger with those of subsidiary ledgers, the quantum

of which is not ascertained.

Tallying of balances in the accounts as per General

Ledger with those of subsidiary ledgers / registers/

schedules is in progress and accounts tallied till date

have not materially affected the published accounts.

II) Point no.11 b) Note no. 6 in Schedule 17 regarding

provision for wage arrears. Pending exact

quantification, we are unable to comment on the

adequacy of the same.

The Bank is in the process of working out the

additional liability towards salaries and wages arising

on account of the settlement reached in this regard

by the Indian Banks’ Association with the trade

unions representing employees.Pending calculation

of actual liability, a provision of Rs.4.25 crores

(P.Y.Rs.4.25 cr) has been made during the year on

an estimated basis. The Bank holds a total provision

of Rs.8.50 crores as at year – end towards this

liability, which is considered by management as

adequate.

STATUTORY DISCLOSURE

Given the nature of the Bank’s operations, the requirement

of disclosure of steps taken for conservation of energy

and technology absorption does not apply to the Bank.

The Bank is fully cognizant of the need to step up the

country’s exports and accordingly endeavors to enlarge

its export financing. None of the Bank’s employees falls

within the purview of section 217(2A) of the Companies

Act, 1956.

CORPORATE GOVERNANCE

The basic philosophy of Corporate Governance of the Bank

is relating to enhancing contributory value addition to

our customers, employees, stakeholders and the society.

The Bank has fully complied with the code of corporate

governance as enumerated in Clause 49 of the Listing

Agreement. Board of Directors executed deed of covenant

and undertaking individually in line with Dr.Ganguly

Committee Report. Pursuant to Clause 49 of the Listing

Agreement, a Management Discussion and Analysis is

presented in Annexure-A, Report on Board Committees

is furnished in Annexure-B. Composition of the Board of

Directors together with the attendance of Directors at

various meetings of the Board, its Committees and Annual

General Meeting and the number of directorships held by

them alongwith the details of Audit Committee and Share

Transfer Greivances Committee are furnished in

Annexure-C. General Shareholders’ information is

furnished in Annexure-D.

DIRECTORS’ RESPONSIBILITIES STATEMENT

The Directors confirm that in the preparation of the annual

accounts for the year ended March 31, 2005:

• the applicable accounting standards have been followed

along with proper explanation relating to material

departures, if any ;

• the accounting policies, framed in accordance with the

guidelines of the Reserve Bank of India, were applied

consistently ;


Place : KARUR For and on behalf of the Board of Directors

Date : 30.08.2005 R. M. NAYAKChairman

• reasonable and prudent judgement and estimates were

made wherever required so as to present a true and

fair view of the state of affairs of the Bank as at the

end of the financial year and the profit of the Bank for

the year ended on March 31, 2005;

• proper and sufficient care was taken for the

maintenance of adequate accounting records in

accordance with the provisions of applicable laws

governing banks in India ; and

• the accounts have been prepared on a ‘going concern’

basis.

ACKNOWLEDGEMENT

The Board places on record its sincere thanks to the

shareholders, depositors and other clientele for their

continued support. Board gratefully extends its thanks

for the support and guidance accorded by RBI,

Government Agencies and host of other institutions.

Your Directors express their appreciation for the

commendable contributions made by staff at all levels.


AUDITORS’ REPORT

M/s. ABARNA & ANANTHAN M/s. S VISWANATHAN

CHARTERED ACCOUNTANTS CHARTERED ACCOUNTANTS

BANGALORE - 560 085. CHENNAI - 600 004.

1) We have audited the attached Balance Sheet of THE

LAKSHMI VILAS BANK LIMITED, KARUR as at 31st

March 2005, the annexed Profit and Loss Account

and also the Cash Flow Statement for the year ended

on that date in which are incorporated the returns

of 42 Branches, 8 Divisional Offices, 6 Service

Branches and 3 other offices audited by us and 178

Branches audited by Branch auditors appointed

u/s. 228(4) of the Companies Act, 1956. There are

no unaudited branches or other offices. These

financial statements are the responsibility of the

Bank’s management. Our responsibility is to express

our opinion on these financial statements based on

our audit.

2) We conducted our audit in accordance with auditing

standards generally accepted in India. Those

standards require that we plan and perform the audit

to obtain reasonable assurance about whether the

financial statements are free of material

misstatements. An audit includes examining on a

test basis, evidence supporting the amounts and

disclosures in the financial statements. An audit also

includes assessing the accounting principles used

and significant estimates made by management, as

well as evaluating the overall financial statement

presentation. We believe that our audit provides a

reasonable basis for our opinion.

3) The Balance Sheet and the Profit & Loss account

have been drawn up in accordance with the

provisions of Section 29 of Banking Regulation Act,

1949 read with Section 211 of the Companies Act,

1956.

4) The reports on the accounts of the branches audited

by Branch Auditors have been dealt with in preparing

our report in the manner considered necessary by

us.

5) We have obtained all the information and

explanations which, to the best of our knowledge

and belief were necessary for the purposes of our

audit and have found them to be satisfactory.

6) The transactions of the Bank, which have come to

our notice, have been within the powers of the Bank.

7) In our opinion, proper books of accounts as required

by law have been kept by the Bank so far as appears

from our examination of those books and proper

returns adequate for the purpose of our audit have

been received from the branches of the Bank.

8) The Bank’s Balance Sheet and Profit and Loss

Account dealt with by this report are in agreement

with the books of account and audited returns from

the branches of the Bank.

9) In our opinion, the Balance Sheet and Profit and

Loss Account dealt with by this report comply with

the Accounting Standards referred to in sub-section

(3C) of the Section 211 of the Companies Act, 1956.

10) On the basis of written representations received

from the Directors and taken on record by the Board

of Directors, we report that none of the directors is

disqualified as on 31st March 2005 from being

appointed as a Director in terms of clause (g) of

sub-section (1) of Section 274 of the Companies

Act, 1956.


for M/s. Abarna & Ananthan for M/s. S. ViswanathanChartered Accountants Chartered Accountants

S. Ananthan R. M. NarayananPartner PartnerMembership No:26379 Membership No: 25650

Place: Karur

Date: 27th June 2005

11) Reference is invited to

a) Note no. 1(b) of Schedule 17 to the

accounts regarding the effect of adjustments

arising in tallying of balances in the accounts

as per General Ledger with those of subsidiary

ledgers, the quantum of which is not

ascertained.

b) Note no. 6 in Schedule 17 regarding

provision for wage arrears. Pending exact

quantification, we are unable to comment on

the adequacy of the same.

12) Subject to para 11 above, in our opinion and to

the best of our information and according to the

explanations given to us, the said accounts together

with notes thereon, give the information required

by the Companies Act, 1956 in the manner so

required for Banking Companies and on such basis

give a true and fair view

(i) In the case of the Balance Sheet, of the State of

Affairs of the Bank as at 31st March 2005;

(ii) In the case of the Profit & Loss Account, of the Profit

of the Bank for the year ended on that date; and

(iii) In the case of the Cash Flow Statement, of the cash

flows for the year then ended

and are in conformity with the Accounting Principles

generally accepted in India.


BALANCE SHEET AS ON 31st MARCH 2005

As per our report of date annexedfor M/s Abarna & AnanthanChartered Accountants

S AnanthanPartnerMembership No:26379

for M/s S ViswanathanChartered Accountants

R M NarayananPartnerMembership No: 25650

Karur27th June 2005

DIRECTORS

N. Malayala Ramamirtham

S.G. Prabhakharan

D.L. Suresh Babu

K.B. Krishnan

M.P. Shyam

V.N. Krishnamurthy

R. Dhandapani

(Rs. in 000s)

SCHEDULE As at As at

31/03/2005 31/03/2004

I. CAPITAL & LIABILITIES

a. Capital 1 115089 115089

b. Reserves & Surplus 2 2184783 2151339

c. Deposits 3 34959251 32958191

d. Borrowings 4 689437 302285

e. Other Liabilities & Provisions 5 2585258 2686602

T O T A L . . . 40533818 38213506

II. ASSETS

a. Cash & Balances with Reserve Bank of India 6 2587780 2303940

b. Balances with Banks and Money atCall & Short Notice 7 954597 497313

c. Investments 8 11808614 13381681

d. Advances 9 23177114 20387040

e. Fixed Assets 10 341079 313135

f. Other Assets 11 1664634 1330397

T O T A L . . . 40533818 38213506

Contingent Liabilities 12 8450419 8761595

Bills for collection 1328269 1659409

Significant Accounting Policies and Notes on Accounts 17

Schedules 1 to 12 and 17 form part of this Balance Sheet.

R.M. NayakChairman

B. RadhakrishnanSr. General Manager

N. RamalinkgamGeneral Manager

N. Giridharan

General Manager

R. Sridharan

Deputy General Manager


PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 31st MARCH 2005(Rs. in 000s)

SCHEDULE Year Ended Year Ended

31/03/2005 31/03/2004

I. INCOME

a. Interest Earned 13 2982042 2859544

b. Other Income 14 383200 868624

T O T A L . . . 3365242 3728168

II. EXPENDITURE

a. Interest Expended 15 1915357 2025139

b. Operating Expenses 16 902788 835497

c. Provisions & Contingencies 513653 457047

T O T A L . . . 3331798 3317683

III. NET PROFIT FOR THE YEAR 33444 410485

Profit brought forward 2197 859

T O T A L . . . 35641 411344

IV. APPROPRIATIONS

a. Transfer to Statutory Reserve 8500 140000

b. Transfer to Capital Reserve 24944 54229

c. Transfer to Investment Fluctuation Reserve 0 137500

d. Transfer to Other Reserves 0 12500

e. Proposed Dividend 0 57545

f. Tax on Proposed Dividend 0 7373

g. Balance carried over to Balance Sheet 2197 2197

T O T A L . . . 35641 411344

Earnings Per Share - Basic (Rs.) [Refer Note 5(d)] 2.91 35.67

Schedules 13 to 16 and 17 form part of this Profit & Loss Account

R.M. NayakChairman

B. RadhakrishnanSr. General Manager

N. RamalinkgamGeneral Manager

N. Giridharan

General Manager

R. Sridharan

Deputy General Manager

As per our report of date annexedfor M/s Abarna & AnanthanChartered Accountants

S AnanthanPartnerMembership No:26379

for M/s S ViswanathanChartered Accountants

R M NarayananPartnerMembership No: 25650

Karur27th June 2005

DIRECTORS

N. Malayala Ramamirtham

S.G. Prabhakharan

D.L. Suresh Babu

K.B. Krishnan

M.P. Shyam

V.N. Krishnamurthy

R. Dhandapani


(Rs. in 000s)As at As at

31/03/2005 31/03/2004

SCHEDULE 1 - CAPITAL

AUTHORISED CAPITAL

(20000000 equity shares of Rs.10/- each) 200000 200000

ISSUED CAPITAL

(11577087 equity shares of Rs.10/- each) 115771 115771

Subscribed, Called-up and Paid Up Capital 115089 115089

(11508902 equity shares of Rs.10/- each)

(of which 2887563 equity shares of

Rs.10/- each issued by way of Bonus

Shares as fully paid)

T O T A L . . . 115089 115089

SCHEDULE 2 - RESERVES & SURPLUS

I. STATUTORY RESERVE

Opening Balance 1203472 1063472

Additions during the year 8500 140000

1211972 1203472

II. CAPITAL RESERVE



168347 143403

III. SHARE PREMIUM



144194 144194

IV. REVENUE & OTHER RESERVES

A. INVESTMENT FLUCTUATION RESERVE



359915 359915

B. OTHER RESERVES



298158 298158

Deductions during the year 0 0

298158 298158

V. BALANCE IN PROFIT & LOSS ACCOUNT 2197 2197

T O T A L . . . 2184783 2151339


SCHEDULE 3 - DEPOSITS

A. I. DEMAND DEPOSITS

1. From Banks 33212 46424

2. From Others 4236750 4053520

4269962 4099944

II. SAVINGS BANK DEPOSITS 4685595 4377299

III. TERM DEPOSITS

1. From Banks 1594601 641800

2. From Others 24409093 23839148

26003694 24480948

T O T A L (I + II + III) 34959251 32958191

B I. DEPOSITS OF BRANCHES IN INDIA 34959251 32958191

II. DEPOSITS OF BRANCHES OUTSIDE INDIA NIL NIL

T O T A L . . . 34959251 32958191

SCHEDULE 4 - BORROWINGS

I. BORROWINGS IN INDIA

1. Reserve Bank of India 0 0

2. Other Banks 0 0

3. Other Institutions & Agencies 284137 76185

284137 76185

II. BORROWINGS OUTSIDE INDIA 405300 226100

T O T A L . . . (I + II) 689437 302285

SECURED BORROWINGS

INCLUDED IN I & II ABOVE 0 0

SCHEDULE 5 - OTHER LIABILITIES AND PROVISIONS

I. Bills payable 567098 529931

II. Inter-office adjustments (net) 183255 414898

III. Interest accrued 157616 157186

IV. Unsecured Sub-ordinated Debts 1098000 908000

V. Deferred Tax Liability (net) 0 1460

VI. (i) Others - (including Provisions) 523789 626627

(ii) Contingent Provisions against Standard Assets 55500 48500

(iii) Provision for recognition of loan impairment on 90 days norms 0 0

T O T A L . . . 2585258 2686602


31/03/2005 31/03/2004


SCHEDULE 6 - CASH AND BALANCES WITH

RESERVE BANK OF INDIA

Cash in Hand (including foreign Currency Notes) 420532 387008

Balances with Reserve Bank of India

i) in current account 2167248 1916932

ii) in other accounts 0 0

T O T A L . . . 2587780 2303940

SCHEDULE 7 - BALANCES WITH BANKS & MONEY AT

CALL AND SHORT NOTICE

I. IN INDIA

i) Balance with Banks

a. in current accounts 171873 196757

b. in other deposit accounts 625000 243300

796873 440057

ii) Money at call and short notice

a. with banks 0 0

b. with other institutions 0 0

T O T A L . . . (i + ii) 796873 440057

II. OUTSIDE INDIA IN CURRENT ACCOUNTS 157724 57256

T O T A L . . . (I + II) 954597 497313

SCHEDULE 8 - INVESTMENTS

I. INVESTMENTS IN INDIA IN

I. Government Securities [incl.treasury bills & zero coupon bonds] 10704248 10840136

II. Other approved securities 168851 287658

III. Shares 39185 65858

IV. Debentures & Bonds 450890 1083341

V. Subsidiaries and Joint Ventures 0 0

VI Others [including Commercial Paper, Mutual Funds, NSC, 445440 1104688

Units, etc.]

T O T A L . . . 11808614 13381681

GROSS INVESTMENTS IN INDIA 12228512 13629479

LESS : DEPRECIATION 419898 247798

NET INVESTMENTS IN INDIA 11808614 13381681

II. INVESTMENTS OUTSIDE INDIA NIL NIL

T O T A L . . . 11808614 13381681


31/03/2005 31/03/2004



31/03/2005 31/03/2004

SCHEDULE 9 - ADVANCES

A. I. Bills purchased & discounted 2095930 2066953II. Cash credits, overdrafts & loans repayable on demand 12203687 9936725III. Term loans 8877497 8383362

T O T A L . . . 23177114 20387040

B. PARTICULARS OF ADVANCES

I. Secured by tangible assets [incl. advances against Book Debts] 20656064 17452929II. Covered by Bank / Govt. Guarantees 609956 1039215III. Unsecured 1911094 1894896

T O T A L . . . 23177114 20387040

C. SECTORAL CLASSIFICATION OF ADVANCES

I. Priority Sector 9504300 7654454II. Public Sector 1495540 754964III. Banks 97786 76434IV. Others 12079488 11901188

T O T A L . . . 23177114 20387040

SCHEDULE 10 - FIXED ASSETS

I. PREMISES

At Cost 213080 209227Additions during the year 15837 7076

228917 216303Deductions during the year 0 3223

228917 213080Depreciation to date 61873 54617

167044 158463

II. OTHER FIXED ASSETS (INCLUDING FURNITURE & FIXTURES)At Cost 489216 429263Additions during the year 73671 61145



167547 148184

III. ASSETS ON LEASE

At Cost 130975 130975Additions during the year 0 0



21398 21398Lease adjustment account 14910 14910

6488 6488

T O T A L . . . 341079 313135


SCHEDULE 11 - OTHER ASSETS

I. Inter-Office Adjustments (Net) 0 0

II. Interest Accrued 266565 328476

III. Tax Paid in Advance and Tax Deducted at Source 874594 801732

IV. Deferred Tax Asset (Net) 318908 0

V. Stationery & Stamps 6776 6572

VI. Non Banking Assets acquired in satisfaction of claims 17840 17840

VII. Others 179951 175777

T O T A L . . . 1664634 1330397

SCHEDULE 12 - CONTINGENT LIABILITIES

I. Claims against the Bank not acknowledged as debts 655994 524051

II. Liability for partly paid Investments 0 0

III. Liability on account of outstanding forward exchange contracts 5224584 5661372

IV. Guarantees given on behalf of constituents - in India 1011295 1182022

- outside India 230 0

V. Acceptances, Endorsements & other obligations 1556466 1384461

VI. Other items for which the Bank is contingently liable 1850 9689

T O T A L . . . 8450419 8761595

SCHEDULE 13 - INTEREST EARNED

I Interest / discount on advances / bills 1868532 1805712

II. Income on Investments 1075483 1009960

III. Interest on balance with Reserve Bank of India & other inter-bank Funds 32607 39158

IV. Others 5420 4714

T O T A L . . . 2982042 2859544


31/03/2005 31/03/2004

(Rs. in 000s)

Year ended Year ended31/03/2005 31/03/2004


SCHEDULE 14 - OTHER INCOME

I. Commission, Exchange and Brokerage 288285 274209

II. Profit on sale of Investments 49808 350962

Less: Loss on sale of Investments 124510 111010

-74702 239952

III. Profit on sale of land, Buildings & Other Assets 851 232

Less: Loss on sale of land, Buildings & Other Assets 634 579

217 -347

IV. Profit on Exchange Transactions 50568 55900

Less: Loss on Exchange Transactions 0 12814

50568 43086

V. Income earned by way of Dividends from Companies in India 34363 245187

VI. Lease Rentals 0 0

VII. Miscellaneous Income 84469 66537

T O T A L . . . 383200 868624

SCHEDULE 15 - INTEREST EXPENDED

I. Interest on Deposits 1803527 1923765

II. Interest on Reserve Bank of India / Inter-Bank Borrowings 18253 31309

III. Others 93577 70065

T O T A L . . . 1915357 2025139

SCHEDULE 16 - OPERATING EXPENSES

I. Payments to and Provision for Employees 471664 505226

II. Rent, Taxes & Lighting 73407 67262

III. Printing & Stationery 12252 13849

IV. Advertisement & Publicity 8033 8334

V. Depreciation on Bank’s Property 60751 49646

VI. Director’s fees, allowances 1685 1970

VII. Auditors’ fees & Expenses (incl. Branch Auditors) 1698 1773

VIII. Law Charges 6721 14969

IX. Postage, Telegrams, Telephones, etc., 26522 26086

X. Repairs & Maintenance 4077 4129

XI. Insurance 28034 13183

XII. Other Expenditure 207944 129070

T O T A L . . . 902788 835497

(Rs. in 000s)Year ended Year ended

31/03/2005 31/03/2004


SCHEDULE 17

A. SIGNIFICANT ACCOUNTING POLICIES

1. General:

The financial statements have been prepared in

accordance with the historical cost convention except

where otherwise stated and conform to the statutory

provisions and practices prevailing within the

banking industry in India and the guidelines /

instructions of Reserve Bank of India issued from

time to time.

2. Foreign Exchange Transactions:

(a) Foreign Currency Assets and Liabilities have

been translated at the exchange rates

prevailing at the close of the year as per the

guidelines issued by FEDAI. The resultant profit

or loss is accounted for.

(b) Income and Expenditure in foreign currency

are translated at the exchange rates prevailing

on the date of the respective transaction.

3. Investments:

Investments are categorised under the heads ‘Held

to Maturity’, ‘Available for Sale’ and ‘Held for Trading’

and are valued in aggregate for each category, in

accordance with the guidelines of the Reserve Bank

of India.

4. Advances:

4.1 In accordance with the prudential norms issued

by RBI:

(i) Advances are classified into standard, sub-

standard, doubtful and loss assets

borrower-wise;

(ii) Provisions are made for loan losses, and

(iii) General provision for standard advances

is made.

4.2 Advances disclosed are net of provisions made

for non-performing assets.

5. Fixed Assets:

(a) Fixed Assets have been accounted for at their

historical cost.

(b) Depreciation on assets other than computers

has been provided for on the diminishing

balance method at the rates specified in

Schedule XIV to the Companies Act, 1956.

(c) Depreciation on computers has been provided

for on straight-line method at the rate of 33.33

per cent as per the guidelines issued by the

Reserve Bank of India.

(d) Operating Software, which is an integral part

of hardware, is capitalized and depreciation is

provided for at the rate of 33.33% on straight-

line method.

(e) For premises, in which land cost and

construction cost could not be ascertained

separately, depreciation is provided for on the

total cost.

(f) None of the fixed assets have been revalued

during the year.

6. Staff Benefits:

Annual contribution to the approved Employees’

Gratuity Fund, approved Pension Fund and provision

for Leave Encashment have been made on actuarial

basis. Contribution to Provident Fund is accounted

for on actual basis.

7. Taxes on Income:

Provision for taxation is made on the basis of the

estimated tax liability with adjustment for deferred

tax in terms of the Accounting Standard 22

(Accounting for Taxes on Income) formulated by

the Institute of Chartered Accountants of India.

8. Recognition of Income and Expenditure:

(a) Income and Expenditure are accounted for on

accrual basis.

(b) The following items of income are recognized

on realization basis, owing to the significant

uncertainty in collection thereof:

(i) Interest and lease income on non-performing

advances, including overdue bills.

(ii) Interest on non-performing investments.

9. Net profit:

The net profit as per the Profit & Loss account is

arrived at after necessary provisions towards-


1. Taxation.

2. Advances and other assets.

3. Shortfall in the value of investments

4. Retirement benefits.

All provisions have been made as per Reserve Bank of

India guidelines and to the satisfaction of the auditors.

10. Accounting Standards:

Accounting Standards as specified in section 211(3C)

of the Companies Act 1956, to the extent they are

applicable to Banking Companies and as per

directions issued by the RBI from time to time, have

been followed.

B. NOTES ON ACCOUNTS

1. (a) Reconciliation of inter branch transactions

is completed upto 31.03.2005.

(b) In a few branches, tallying of the balances

in the accounts as per General Ledger with

those of subsidiary ledgers/registers/

schedules is in progress. The effect of

this on the profit of the Bank is not

ascertainable.

2. “Payment to and Provision for Employees”

includes remuneration paid to Chairman and

Chief Executive Officer of the Bank as detailed

below:

Sri. A.Krishnamoorthy 2004-2005 2003-2004

Consolidated Pay 12,73,548 9,10,323

Employers’ contribution to

Provident Fund 1,27,355 91,032

Leave encashment - -

Gratuity - -

Monetary value of perquisites # 27,954 25,429

Total 14,28,857 10,26,784

# (at cost in terms of amended provisions of Sec.217

(2A) of the Companies Act, 1956)

3. (a) The computation of Income as per provisions

of The Income Tax Act, 1961 results in a loss

for the year under consideration. In this

computation, the bank has considered certain

deductions based on judicial pronouncements

and legal opinion. Hence, while no provision

for taxation is considered necessary, a deferred

tax asset of Rs.30.53 crores has been

recognized by credit to Profit and Loss account

to comply with the provisions of Accounting

Standard 22 issued by Institute of Chartered

Accountants of India. The management is of

the opinion that it is in order in recognizing

the Deferred Tax Asset as above.

(b) The disputed Income Tax demand outstanding

as on 31.03.2005 amounts to Rs.60.97 crores

and is included under Item I of Schedule 12

(Contingent Liabilities). Of the above, Rs.60.79

crores has been paid or adjusted by the Income

Tax Department. No provision is considered

necessary in respect of the disputed liabilities

in view of favourable decisions by various

appellate authorities on similar issues.

4. ADDITIONAL DISCLOSURE IN TERMS OF RBI

GUIDELINES:(Rs. in Cr.)

2004-05 2003-04

a) Percentage of Shareholding of Government of India Nil Nil

b) Break-up of the item “Provisions and Contingencies”

included in the Profit and Loss account: Provision for

(i) Standard Assets 0.70 0.75

(ii) Non-Performing Assets 20.58 22.20

(iii) Income Tax – Current Nil 15.29

(iv) Income Tax – Deferred Tax Liability 0.34 0.53

(v) Income Tax – Deferred Tax Asset (-)32.38 (-)2.22

(vi) Leave Encashment 1.23 1.95

(vii) Depreciation on Investments 60.89 7.20

TOTAL 51.36 45.70

(c) Amount of Subordinated debt (Tier II Capital) 119.80 90.80

outstanding at year end

Issued during the year included above(*of issue size of Rs.30 cr.) 19.00* 50.00**(** of issue size of Rs.50 cr.)

(d) Business Ratios:

(i) CRAR (%) 11.32 13.79

(a) Capital Adequacy Ratio – Tier I Capital (%) 5.67 8.49

(b) Capital Adequacy Ratio – Tier II Capital (%) 5.65 5.30

(ii) Interest Income as a % to Average Working Funds 7.66 8.30

(iii) Non-Interest Income as a % to AverageWorking Funds 0.98 2.52

(iv) Operating Profit as % to Average Working Funds 1.40 2.64

(v) Net NPA to Net Advances (%) 4.98 5.40

(vi) Return on Average Assets (%) 0.08 1.19

(vii) Business (Deposits +Advances) per employee 2.96 2.76

(viii) Profit per employee (Rs. In lacs) 0.17 2.11


e) Maturity Pattern of Assets / Liabilities: (Rs. in Crore)

Residual Maturity

Days Days 29D- Months 6M-1Y Year Year Year Total1-14 15-28 3M 3-6 1-3 3-5 Over 5

i) Advances 171.42 37.60 239.58 213.66 339.83 940.08 176.47 199.07 2317.71(185.25) (49.59) (170.04) (203.61) (197.83) (935.83) (111.00) (185.56) (2038.71)

ii) Investments 0.00 0.00 2.40 1.80 5.86 110.40 206.19 854.21 1180.86(3.83) (2.06) (0.51) (7.94) (24.62) (153.48) (230.92) (914.81) (1338.17)

iii) Deposits 285.42 129.57 554.85 394.92 622.00 1373.71 87.05 48.41 3495.93(271.14) (145.15) (480.96) (357.53) (502.32) (1386.15) (100.91) (52.53) (3296.69)

iv) Borrowings 0.00 0.00 65.53 1.14 0.58 0.07 1.62 0.00 68.94(22.68) (0.00) (0.07) (0.17) (1.91) (4.45) (0.14) (0.80) (30.22)

v) Foreign Currency Assets 3.54 0.44 6.30 6.92 0.00 1.42 - - 18.62(5.60) (1.97) (3.04) (7.02) (0.28) (—) (17.91)

vi) Foreign Currency 28.13 0.33 20.87 2.31 4.65 9.09 - - 65.38Liabilities (6.17) (0.32) (0.85) (25.07) (6.06) (11.09) (49.56)

The coverage of actual data used for extracting the residual pattern of advances, investments, deposits and borrow-ings are 97.90%, 100%, 97.40% and 100% respectively. The data is as furnished by the bank. Previous year’sfigures are given in brackets.

(f) Movement in Non-Performing Assets (NPAs)–Advances:

(Rs. in Crore)

Gross NPAs 2004-2005 2003-2004

Opening Balance 216.83 211.13

Add: Additions during the year 44.19 30.87

Sub-Total 261.02 242.00

Less: Deductions during the year (73.57) (25.17)

Closing Balance 187.45 216.83

DICGC/ECGC claims settled, SundryDeposits and Interest Suspense 10.98 10.03

Provision Held 61.42 97.32

Net NPAs 115.05 109.48

(h) Movement in Provision for Non-Performinginvestments:

(Rs. in Crore)

2004-2005 2003-2004


Add : Provision made during the year 2.86 0.45

Less: Write Off, write back of excessprovisions during the year 0.10 -


(g) Movement in Provision for Non-PerformingAdvances:

[Rs. in Crore]

2004-2005 2003-2004


Add: Provisions made during the year 20.58 22.20

Less: Write Off, write back 56.48 2.18of excess provisions


(i) Provision for Depreciation on Investments:

[Rs. in Crore]

2004-2005 2003-2004


Add:Provision made during the year 60.89* 7.20

Less:Write Off, write back of excessprovision during the year 43.68 0.63


* includes Rs.35.76 crore on transfer of securities to ‘Held-to Maturity’category.


(k) Advances to Sensitive Sectors:

(Rs. in Crore)

2004-2005 2003-2004

a) Advances to Capital Market Sector 23.86 37.30

b) Advances to Real Estate Sector 12.87 9.27

c) Advances to Commodities Sector 124.78 87.00

(l) Financing of equities and investment in shares:

[Rs. in Crore]

2004-2005 2003-2004

Investments made in Equity Shares/Convertible Debentures 1.08 1.60Investments made in Units of EquityOriented Mutual Funds 22.11 35.11

Advances Against Shares 0.67 0.59

Total Finance extended for margin trading Nil Nil

(m) Restructuring of Loan Assets undertaken during the year: [Rs. in Crore]

(i) Other than under Corporate Debt Restructuring Scheme 2004-2005 2003-2004

Total amount of loan assets subjected to restructuring 15.39 0.46

The amount of standard assets subjected to restructuring 12.04 0.46

The amount of sub-std. assets subjected to restructuring 3.35 Nil

The amount of doubtful assets subjected to restructuring Nil Nil

(ii) Under Corporate Debt Restructuring Scheme 2004-2005 2003-2004

Total amount of loan assets subjected to restructuring 32.35 29.27

The amount of standard assets subjected to restructuring 11.77 29.27

The amount of sub-std. assets subjected to restructuring 20.58 Nil

The amount of doubtful assets subjected to restructuring Nil Nil

(j) (i) Issuer composition of Non SLR Investments: [Rs. in Crore]

No. Issuer Amount Extent of Extent of ‘below Extent of Extent ofPrivate securities investment ‘unrated’ ‘unlisted’

Placement grade’ securities (Below “A” securities securitiesGrade & Unrated Securities)

(1) (2) (3) (4) (5) (6) (7)

1 PSUs 6.11 5.95 2.95 0.95 3.65

2 FIs 30.75 8.82 6.83 6.83 7.82

3 Banks 7.63 7.45 3.75 3.75 3.75

4 Private Corporates 16.77 16.02 14.92 12.99 13.49

5 Subsidiaries/ — — — — —

Joint Ventures

6 Others @ 51.16 — — — —

7 Provision held 18.87

towards depreciation

TOTAL * 93.55

@ Others – includes investments in Mutual Funds and

RIDF.

* Break-up of Total: (Rs. In Cr.)

Shares 8.57

Debentures & Bonds 52.69

Subsidiaries & Joint Ventures -

Others 51.16

Provision held towards depreciation 18.87

Total 93.55

(ii) Non performing Non SLR Investments

[Rs. in Crore]

Particulars 2004-2005 2003-2004

Opening balance 9.69 9.69

Additions during the year since 1st April 5.59 Nil

Reductions during the above period 0.97 Nil

Closing balance 14.31 9.69

Total provisions held 11.49 8.73


(n) Country Exposure:

The net funded exposure of the bank in respect of Foreign exchange transactions with each country is within 2%of the total assets of the bank and hence no provision and disclosure is required to be made as per RBI circularDBOD.BP.BC.71/21.04.103/2002-03 dated 19.02.03.

(o) Securities sold under repos and purchased under reverse repos: (Rs. in Crore)

Minimum Maximum Daily average As on 31.03.05outstanding outstanding outstanding

during the year during the year during the year

Securities sold under repos 7.00 142.64 21.95 Nil(Nil) (Nil) (Nil) (Nil)

Securities purchased underreverse repos 10.00 120.00 11.92 Nil

(10.00) (50.00) (5.07) (Nil)

Previous year’s figures are given in brackets.

(p) The Bank did not undertake any interest rate swap or derivative trading during the year.

(q) Details of credit exposures where the bank has exceeded the prudential exposure during the year:

(Rs. in lacs)

S. Name of the Exposure Limit Period during Amount Board Position as onNo. Borrower Ceiling Sanctioned which limit outstanding Sanction 31.03.2005

(15% of exceeded during the DetailsCapital Funds) period limit

exceeded

1 LIC Housing Finance Ltd. 4343.85 5000.00 June 2004 to 5000.00 Sanctioned on 5000.00 March 2005 23.08.2003

2 Sri Saravana Spinning Mills 4343.85 5383.17 January 2005 to 4706.05 Sanctioned on 4706.05Pvt. Ltd March 2005 22.12.2004

5. Compliance with accounting standards issued by institute of chartered accountants of india (ICAI)

(a) Accounting Standard – 5 – Prior Period items:

There are no material prior period items requiring disclosure in terms of Accounting Standard 5.

(b) Accounting Standard 17 –Segment Reporting : Part A – Primary (Business) Segments:

2004-05 2003-04 2004-05 2003-04 2004-05 2003-04

Revenue 109.64 154.94 226.89 217.87 336.53 372.81Result (26.58) 26.78 107.37 82.93 80.79 109.71Unallocated Expenses 26.08 22.96Operating Profit 54.71 86.75Provisions & Contingencies 83.40 32.10Income Tax (32.03) 13.60Extraordinary Profit/Loss — —Net Profit 3.34 41.05OTHER INFORMATIONSegment Assets 1224.03 1373.35 2655.55 2317.27 3879.58 3690.62Unallocated Assets 173.80 130.73Total Assets 4053.38 3821.35Segment Liabilities 40.93 0.09 3720.09 3503.46 3761.02 3503.55Unallocated Liabilities 62.38 91.17Total Liabilities 3823.40 3594.72(excl. Capital & Reserves)

(Rs. in Crore)

Business SegmentsTreasury Other Banking Operations Total


Entire Investment portfolio has been considered as

Treasury Segment and accordingly its income and

assets are allocated to the segment. All other

income and allocable assets are considered as

pertaining to Other Banking Operations segment.

In respect of the funds lent to the Treasury segment,

the cost has been allocated on Transfer Pricing

Method.

Part B – Secondary (Geographic) Segments:

Since the bank is not having overseas operations, no

reporting is necessary under this segment.

(c) Accounting Standard 18 – Related Party

Disclosures:

The disclosure under AS-18 is furnished in Note

No.2 in respect of remuneration to Key

Management Personnel.

(d) Accounting Standard 20 – Earnings Per

Share (EPS):

EPS calculation in accordance with the AS-20

issued by the ICAI is as under:

2004-2005 2003-2004

Net profit after

Tax (Rs. in 000) 33444 410485

No. of shares 11508902 11508902

Earnings per share –

Basic & diluted (Rs.) 2.91 35.67

Note: There are no potential dilutive equity shares.

(e) Accounting Standard 22 – Accounting for

Taxes on Income:

The bank has accounted for Income Tax in

compliance with AS 22. Accordingly, Deferred

Tax Assets & Liabilities are recognized. The

major components of Deferred Tax are as

under:

Components Deferred DeferredTax Assets Tax Liability

Leave Encashment 1.74 -

(1.32)

Depreciation on Fixed - - 3.33Assets (-2.99)

Provision for Wage Arrears 2.95 -

(1.52)

Carried forward Loss 30.53

(Nil)

Net Deferred Tax Asset 31.89(Liability) (0.15)

Figures in brackets pertain to previous year.

(f) Accounting Standard 28 – Impairment of

Assets:

A substantial portion of the bank’s assets

comprise financial assets to which Accounting

Standard 28 is not applicable. In the opinion

of the bank, there is no impairment of other

assets to any material extent as at

31st March 2005 requiring recognition in termsof the said standard.

6. The Bank is in the process of working out the

additional liability towards salaries and wages arising

on account of the settlement reached in this regard

by the Indian Banks’ Association with the trade

unions representing employees. Pending calculationof actual liability, a provision of Rs.4.25 crore

(P.Y. Rs.4.25 cr) has been made during the year on

an estimated basis. The Bank holds a total provision

of Rs.8.50 crores as at year-end towards this liability,

which is considered by management as adequate.

7. The Bank earned a profit of Rs. 3.24 crores on sale

of securities under HTM category. As per theguidelines of the Reserve Bank of India, this profit

has to be transferred to Capital Reserve. However,

only a sum of Rs. 2.50 crores is transferred to the

Capital Reserve on account of the profits available

for appropriation.

8. Previous year’s figures have been regrouped /

reclassified wherever considered necessary toconform to the current year’s classification.


CASH FLOW STATEMENT FOR THE YEAR ENDED 31st MARCH, 2005

(Rs. in thousands)

31.03.2005 31.03.2004

CASH FLOW FROM OPERATING ACTIVITIES:

Net Profit as per Profit & Loss Account 33,444 410,485

ADJUSTMENTS FOR:

Provisions & Contingencies 513,653 457,047

Depreciation 60,751 49,646

Loss on sale of assets (217) 347

Income Tax / T D S paid (169,820) (205,147)

Net cash flow before changes in Working Capital 437,811 712,378

CHANGES IN WORKING CAPITAL :

LIABILITIES : Increase/Decrease in

Deposits 2,001,060 5,253,175

Refinances 387,152 (338,858)

Other Liabilities (1,269,856) 422,611

1,118,356 5,336,928

ASSETS : Increase/Decrease in

Investments (1,400,967) 3,081,644

Advances 2,420,995 2,950,278

Leased-out Assets 0 0

Other Assets (161,000) (74,686)

(859,028) (5,957,236)

CASH FLOW FROM INVESTING ACTIVITIES :

Purchase of Fixed Assets (89,508) (64,998)

Sale of Fixed Assets 1,030 (88,478) 845 (64,153)

CASH FLOW FROM FINANCING ACTIVITIES:

Shares issued 0 0

Tier II Bonds 190,000 500,000

Dividends paid (57,537) 132,463 (56,415) 443,585

Cash flow for the year 741,124 471,502

Cash & Cash equivalents at the beginning of the year 2,801,253 2,329,751

Cash & Cash equivalents at the end of the year 3,542,377 2,801,253

Note: Cash, Balances with Other Banks, Balances with R B I, and Money at Call and Short Notice have been

considered as cash and cash equivalents.


AUDITORS’ CERTIFICATE

We have verified the Cash Flow Statement of The Lakshmi Vilas Bank Limited, Karur for the year ended March 31,2005.

This cash flow statement is the responsibility of the Management of the Bank in accordance with clause 32 of the

listing agreement entered into with the Stock Exchange and is in agreement with the Balance Sheet as at March 31,

2005 and the Profit & Loss Account for the year ended March 31, 2005 dealt with in our report dated June 27,2005 to

the members of The Lakshmi Vilas Bank Limited.

For ABARNA & ANANTHAN For M/s. S. VISWANATHANCHARTERED ACCOUNTANTS CHARTERED ACCOUNTANTS

S. ANANTHAN R. M. NARAYANANPartner PartnerMembership No:26379 Membership No: 25650

Place: KarurDate: 27th June 2005

AUDITORS’ CERTIFICATE ON CORPORATE GOVERNANCE

To 27th June 2005The Members of KarurThe Lakshmi Vilas Bank LimitedKarur

We have examined the compliance of conditions ofCorporate Governance by The Lakshmi Vilas Bank Limitedfor the year ended on 31st March, 2005 as stipulated inclause 49 of the Listing Agreement of the said bank withstock Exchange.

The Compliance of conditions of Corporate Governanceis the responsibility of the Management. Our examinationwas limited to procedures and implementation thereof,adopted by the Bank for ensuring the compliance of theconditions of the Corporate Governance. It is neither anaudit nor an expression of opinion on the financialstatements of the Bank.

In our opinion and to the best of our information andaccording to the explanations given to us, we certify thatthe Bank has complied with the conditions of CorporateGovernance as stipulated in the abovementioned ListingAgreement.

As required by the Guidance Notes issued by the Instituteof Chartered Accountants of India, we have to state thatno investor grievance is pending for a period exceedingone month against the Bank as per the records maintainedby the Shareholders and Investor’s Grievance Committee.

We further state that such compliance is neither anassurance as to the future viability of the Bank nor theefficiency of effectiveness with which the managementhas conducted the affairs of the Bank.

For ABARNA & ANANTHAN For M/s. S. VISWANATHAN

CHARTERED ACCOUNTANTS CHARTERED ACCOUNTANTS

S. ANANTHAN R. M. NARAYANAN

Partner PartnerMembership No:26379 Membership No: 25650


a) Industry Structure and Developments

Our Banking industry consists of Nationalized Banks,Old Private Sector Commercial Banks, New PrivateSector Commercial Banks, Co-operative Banks,Regional Rural Banks and Foreign Banks. Our Bankestablished in 1926 as Banking Company and hasbeen classified as Scheduled Commercial Bank bythe RBI.

Reserve Bank of India has prepared roadmap forbanking sector reforms in India and accordinglyunveiled the same by releasing the road map forpresence of foreign banks in India and guidelineson Ownership and Governance for private sectorbank which covers interalia the eligibility criteria ofminimum capital requirement on par with the entrycapital requirement for new private sector banks.In order to meet with this requirement, all banks inprivate sector should have a net worth of Rs.300.00crores at all times. The banks which are yet toachieve the required level of net worth will have tosubmit a time-bound programme for capitalaugmentation to RBI. Where the net worth declinesto a level below Rs.300.00 crores, it should berestored to Rs.300.00 crores within a reasonabletime.

During the year the overall stance of monetary policyfor 2004-05 was to provide a) adequate liquidity toensure credit flow to the commercial sector of theeconomy b) pursue an interest rate environmentconducive to maintain growth momentum and pricestability c) measures to stabilize inflationarypressures. While interest rates were stable, creditdelivery aspect received greater attention. CRR ofscheduled commercial banks was raised by one-halfof one percentage point in 2 stages – to 4.75%effective September 18, 2004 and to 5.0% effectiveOctober 2, 2004. The Mid – Term Review of AnnualPolicy raised repo rate by 25 basis points to 4.75%effective October 27, 2004. Minimum tenor of retaildomestic term deposits ( under Rs.15 lacs ) can bereduced from 15 days to 7 days at the discretion ofthe Bank. The Composite loan limit for SSI wasenhanced from Rs.50 lacs to Rs.1 crore.

Recent Collapse of one of the new private sectorbank had potentially affected the confidence ofInvestors / Depositors. However, Private Sectorscheduled commercial banks and Commercial Banksstrived hard to rebuild the confidence amonginvestor by value added services and advertisements& publicity.

ANNEXURE - A

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

b) Opportunities and Threats

Based on the economic factors as also performanceduring the fiscal 2004-2005 it is estimated that theaggregate deposits of the commercial banks wouldgrow around 15% over the previous fiscal. The non-food credit including non-SLR investments is alsoexpected to increase by around 19%.

The biggest challenge is the menace of NPAs whichreduces the profitability of the banks. If banks haveto cut their costs and improve performance, theyshould reduce their NPAs. On transition from‘regulatory adequacy’ to `market efficiency’, banksneed to use product development and differentiation,innovation, business process re-engineeringtechniques backed by technological up-gradation.

c) Business Segmentation

DEPOSITS

Amount in Percentage(crore of Rs.) to total

1) Demand 426.99 12.21 2) Savings 468.56 13.40 3) Term 2600.36 74.39

Total 3495.91 100.00

ADVANCES

Amount in Percentage

(crore of Rs.) to total

1. Manufacturing Sector

(SSI, Medium &

Large Ind) 1137.91 49.10

2. Trade & Service Sector 518.59 22.37

3. Agricultural sector 291.59 12.58

4. Housing Sector 186.82 8.06

5. Transport / NSFCS 15.52 0.67

6. Personal Segment 129.78 5.60

7. Others 37.50 1.62

Total 2317.71 100.00

d) Outlook

With real GDP growth at 6.9% in 2004-2005, India’smacro economic performance turned out to bestronger than anticipated and expected to registerhigher GDP growth rate over the next year withexpected good monsoon and increase in demandfor bank credit.

e) Risk and Concerns

Risk is internal part of the banking business andvarious types of risks the banks are exposed toa) Credit Risk b) Market Risk c) Operational Risk


banks should put in place a system for identification,measurement, monetary and management of risks,to mitigate their adverse impact on its financials.

f) Internal Controls

Banks has a separate Audit and Inspection

Department which subjects all the Branches

including International Division, Investment Cell,

Currency Chest, Service Branches and every

department of the Administrative Office to regular

inspection. Key branches including Investment Cell

at Mumbai are under concurrent audit which covers

almost 70.85% of the Bank’s business. All

computerized branches are subjected to a separate

security-audit regularly; Management audit of

controlling offices was done by external agency

during the year.

Audit Committee of the Board has been constituted

in line with RBI guidelines. To meet the requirement

of clause 49 of the Listing Agreement, the Audit

Committee reviews the adequacy of the audit and

compliance function, including the policies,

procedures, techniques.

g) Human Resources Development / Industrial

Relations

Knowledge becomes asset of every institution and

continous updation is essential to face the

competition in the industry and newer challenges,

the banks continues its focus in the area of training.

Against this backdrop, the Bank runs a full-fledged

Training College with skilled and experienced faculty

to impart job-oriented training at frequent intervals

to its staff at various levels. Wherever needed

specialised courses were conducted at the college

with external faculty. Our officers were also deputed

to courses at reputed training colleges and

programmes.

The Industrial relations remained cordial throughout

the year. The number of permanent employees on

the rolls of the Bank as on March 31 2005 was 1928

including part-time employees.

h) Discussion on Financial parameters with

respect to operational performance

The Bank continued its emphasis on “Operating Profit

Approach”, The Bank could record moderate to good

performance in terms of various key financial

parameters.

Deposits increased by 6.07%

Advances increased by 13.69 %

Net Interest income increased by 27.83 %

Net-worth increased by 1.48 %

Number of branches increased to 225 from 224

Number of staff: 1928

The composition of the Board of Directors, headed by

Executive Chairman is governed by the provisions of the

Companies Act,1956, Banking Regulation Act, 1949 and

listing agreement entered with NSE. The Board has a

strength of 8 Directors as on 31.03.2005. The Board

consists of eminent persons with considerable professional

expertise and experience in Banking, Law, Finance,

Accountancy, Small Scale Industry, Agriculture and

Business including Exports. Details of name of Chairman

and Directors of the Board, number of meetings held

and attendance during the year are provided in

Annexure-C. All Directors of the Bank attended the last

Annual General Meeting held on 29.07.2004.

The Bank has not entered into any materially significant

transaction which could have a potential conflict of interest

ANNEXURE – B

BOARD OF DIRECTORS AND COMMITTEES

with its promoters, directors, management or relatives

etc., except the transactions entered into in the normal

course of banking business.

Committees of Directors

The Board has constituted Committees of Directors to

deal with matters, which need special focus and timely

monitoring of the activities falling within the terms of

reference of the Committees. The Board Committees

are as follow:

Audit Committee

Audit Committee of the Board is chaired by Shri. D.L.

Suresh Babu, Independent Director who is a Chartered

Accountant by profession. Audit Committee provides

direction and oversees the operation of total audit function


Non-Performing Assets (NPA) Review Committee

The Committee reviews once in every quarter, the status

of NPA and Recovery. It emphasizes steps to improve

the quality of the assets as per RBI norms by continuously

following up with irregular accounts and triggering

provisions of SERFAESI Act against the defaulters or

proceeding legally against the defaulters in Debt Recovery

Tribunal and also enter into compromise settlement.

Integrated Risk Management Committee

The Integrated Risk Management Committee constituted

as per RBI guidelines, formulates Bank’s credit and

Market risk policies and reviews the Assets and Liabilities

of the Bank based on periodical structural liquidity and

dynamic liquidity statements on outflows and inflows and

also analyses the interest rate sensitivity of assets and

liabilities.

Remuneration Committee

No committee has been formed as the remuneration of

whole time Director and sitting fees payable to other

directors is decided only by the Board of Directors. The

revised remuneration of Ex-Chairman & CEO was

approved by RBI on the recommendations of the Board,

details of which is given in the Schedule 17 of the Annual

accounts and other directors are paid only sitting fees

for Board/ Committee meetings attended by them.

Fraud Monitoring Committee

Pursuant to the Directions of the Reserve Bank of India,

the Bank has constituted a Fraud Monitoring Committee,

exclusively dedicated to the monitoring and following up

of cases of fraud involving amounts of Rs.1 crore and

more. The objective of this Committee for effective

detection of frauds and ensuring of prompt reporting

thereof to regulatory and enforcement agencies.

Customer Service Committee of the Board

Pursuant to the Directions of the Reserve Bank of India,

the Bank has constituted a Customer Service Committee

exclusively dedicated to bring about improvement in the

quality of customer service provided by the bank.

Disclosure

No strictures are passed on the bank by any regulatory

authority for non-compliance of any laws except:

1 The Bank has received a letter from SEBI vide letter

no CFD/DCR/RC/TO/23040/04 dated 16.11.2004

in the Bank as per RBI guidelines. Details of name of

members and chairman, meetings and attendance during

the year under review, are provided in Annexure-C. The

terms of reference of Audit are in accordance with

Provisions of Companies Act, 1956, Banking Regulation

Act, 1949 and clause 49 of listing agreement inter alia

includes the following :

• Overseeing the Bank’s financial reporting process

and ensuring correct, adequate and credible

disclosure of financial information.

• Recommending appointment and removal of

external auditors and fixing of their fees.

• Reviewing with management the annual financial

statements before submission to the Board with

special emphasis on accounting policies and

practices, compliance with accounting standards and

other legal requirements concerning financial

statements and

• Reviewing the adequacy of the Audit and Compliance

function, including their policies, procedures,

techniques and other regulatory requirements.

Share Transfer and Investors’ Grievances

committee

The Share Transfer and Investors’ Grievances Committee

approves and monitors share transfers, transmission,

split, consolidation, issue of duplicate shares, physical

shares on remat requests, fixing book closure/ record

date etc. Besides Board, Committee monitors the

redressal of complaints of investors like Complaints on

Share transfer, non-receipt of dividend declared, non-

receipt of annual report & other related matters. The

Committee also reviews the compliance of provisions and

requirements of Reserve Bank of India, SEBI, Stock

Exchanges, Registrar of Companies, Depositories, and

other statutory bodies.

During the year the Bank received 5 complaints from

shareholders, which have been resolved. Details of name

of members, Chairman, Compliance officer, meetings and

attendance during the year are provided in Annexure-C.

Infrastructure Development committee

The committee approves purchase and leasing of

premises for the use of the Bank’s branches and for

employees’ residences and the purchase of computer

hardware, software, peripherals and accessories etc.


alleging violation of Regulations 6 and 8 of the SEBI

(Substantial Acquisition of Shares and Takeovers)

Regulations 1997 calling for consent order to pay

penalty of Rs. 2,75,000 for non filing of returns under

Reg 6 (2), 6(4) and 8 (3) if the bank is willing to

make request for consent order.

However, a reply has been given by the Bank on

12.01.2005 justifying that the same are not

applicable to the Bank and requesting for dropping

of further proceedings. Decision of SEBI is awaited.

2. Reserve Bank of India DBS has pointed out in letter

dated 14th Feb 2005 received on 22nd Feb 2005

certain violations in the utilisation of IFR for making

provision towards depreciation on investments while

ANNEXURE – C

Composition of the Board of Directors together with the attendance at meetings of the Board, its Committees and AnnualGeneral Meeting and directorship held

Representation Category as Board Audit Share Integrated Risk NPA Infrastructure Gratuity Pension Provident Annual No. ofas per per Listing (27 Committee Transfer & Management Review Development Committee Trust Trust (3 General Other

Name of the Director Banking Agreement meetings) (8 Investors’ Committee Committee Committee (4 meetings) (2 meetings) Meeting Director-Regulation Act meetings) Grievances (4 meetings) (4 meetings) ( 2 meetings) meetings) ships held

Committee(3 meetings)

Mr. A.Krishnamoorthy, Majority- Executive- 24 NA NA 4 4 2 4 2 3 YES NIL

Ex - Chairman - Board Banking Director/Non

Chief Executive Officer Independent

Mr.C.Krishnakumar Minority- Promoter/ 27 8 3 4 4 2 4 2 3 YES NIL

Trade Non-

executive/

Non-

Independent

Mr.N. Malayalaramamirtham Minority Promoter/ 24 7 3 4 4 1 4 2 NA YES NIL

(Chairman – Share Transfer -Trade Non-

& Investors’ Grievances executive/

Committee) Non -

Independent

Mr.S.G. Prabhakharan Majority Independent/ 26 NA 3 3 4 2 NA NA 3 YES 7

-Law Non-

executive

Mr.D.L. Suresh Babu Majority- Independent/ 26 8 NA 4 4 NA NA NA NA YES 1

(Chairman - Audit Chartered Non

Committee) Accountancy -executive

Mr.K.B. Krishnan Majority-SSI Independent/ 26 8 NA NA NA NA 4 NA NA YES 2

Non-

executive

Mr.M.P. Shyam Minority Independent/ 18 4 2 2 4 2 NA 2 NA YES 4

Business Non-

executive

Mr.V.N. Krishnamurthy Majority Independent/ 25 NA 3 NA NA NA NA NA NA YES NIL

SSI Non-

executive

Mr.R.Dhandapani Majority- Independent/ 27 NA NA NA NA NA NA NA NA YES NIL

Agri Non-executive

finalising unaudited limited review financial results

of the Bank for quarters ended June and September

2004 and issued notice proposing penalty.

Bank has submitted its response/clarifications to RBI

both during personal hearing and in detailed reply.

While finalising the financial results for the 9-month

period ended Dec 2004, Bank had re-credited IFR

amount withdrawn earlier and is holding IFR of

7.65% on AFS portfolio as against requirement of

5% to be built up before March 2006. Suitable

disclosure is also made by the Bank in the

accompanying notes to publication of financial

results under clause 41 of the listing agreement.


ATTENDANCE AT AUDIT COMMITTEE MEETINGS

Meeting details

Names of the Category of Held during Whether

Committee Members director the tenure of Attended % of attended last

director/ invitee total AGM (Y/N)

D.L.Suresh Babu Chairman – NED / 8 8 100% Y

Independent

N.Malayalaramamirtham NED/ Non- 8 7 87.50% Y

Independent/Promoter

C. Krishnakumar NED/ Non- 8 8 100% Y

Independent/Promoter

K.B. Krishnan NED / 8 8 100% Y

Independent

M.P. Shyam NED / 8 4 50% Y

Independent

INFORMATION ABOUT SHARE TRANSFER WORK TO A DELEGATED AUTHORITY

Description of delegated Full Address of delegated Telephone Fax E-Mails ID

authority authority Numbers Numbers

Name and designation of S.Venkateswaran, Company Secretary/

Compliance Officer of Compliance Officer, The Lakshmi

the Company Vilas Bank Limited Regd. & Administrative04324 220068 [email protected]

Office, Salem Road,220051 – 60 & 69

Kathaparai, Karur – 639 006

Name of Board Committee Share Transfer & Investors’

and Chairman’s name Grievances Committee

Mr.N.Malayalaramamirtham,

Director, The Lakshmi Vilas Bank04324 220068 &

[email protected]

Limited, Regd. & Administrative Office,220051-60 69

Salem Road, Kathaparai,

Karur – 639 006

The Registrar and Share M/s.Integrated Enterprises (India) Ltd 044

Transfer Agents II Floor, “Kences Towers” No.1, 28140801 28142479

Ramakrishna St., 28140802 28143378 [email protected]

North Usman Road, 28140803

T.Nagar, Chennai – 600 017


Means of Communication

The Bank has published its financial - quarterly and annual

results in The New Indian Express (English) andDinamani (Vernacular - all editions) The results are

displayed on the Bank’s website at www.lvbank.com

Management discussion and analysis forms part of the

Annual Report which is posted to the shareholders of the

Bank.

Financial Calendar 2005-2006 (tentative): 78th

Annual General Meeting

Date & Time : 29.09.2005, 10.30 A.MVenue : Registered Office, Salem Road,

Kathaparai, Karur – 639006,

Tamilnadu.

Informations of last three Annual General Meetings

held

75th AGM - 14/08/2002 - 10.30 A.M. - A.O. Karur.

76th AGM - 07/08/2003 - 10.30 A.M. - A.O. Karur.

77th AGM - 29/07/2004 - 10.30 A.M. - A.O. Karur.

Annual General Meeting (Next Year) August, 2006

Board Meetings

Results for the quarter ending June 2005 – 16th July

2005

Results for the quarter ending September 2005 – Lastweek of October 2005

Results for the quarter ending December 2005 – Last

week of January 2006

Results for the quarter ending March 2006 – Last week

of June 2006

Unclaimed Dividend:

Information in respect of unclaimed dividend and last

date for making claim is given below:

Financial Date of Amount as on Last date

Year Declaration 31.03.2005 for claim

in Rs.

1997-98 28.08.1998 5,79,538 27.08.2005

1998-99 28.07.1999 6,12,541 27.07.2006

1999-00 29.08.2000 9,94,491 28.08.2007

2000-01 27.07.2001 11,28,870 26.07.2008

2001-02 14.08.2002 12,27,088 13.08.2009

2002-03 07.08.2003 15,41,449 06.08.2010

2003-04 29.07.2004 19,56,075 28.07.2011

ANNEXURE-D

GENERAL SHAREHOLDERS’ INFORMATION

Compliance with clause 32 of the Listing Agreement

Name and address of the Stock Exchange where equityshares of Lakshmi Vilas Bank Limited is listed:

The National Stock Exchange of India LimitedExchange Plaza, 5th floor,Plot No.C/1,G Block, Bandra – Kurla Complex ,Bandra ( E ) , Mumbai – 400 051.

Bank confirms that the Annual Listing Fee has been paidto National Stock Exchange.

Dematerialization

The fully paid Equity Shares (ISIN NO:

INE694C01018) & partly paid Equity shares (ISINNo: IN9694C01016) of the Bank are admitted underdemat mode with both the depositories of the countryi.e., National Securities Depository Limited and CentralDepository Securities (India) Limited.

Stock Market Data

Month NSE Listed on 21.06.2000

High Low

April 2004 161.35 116.50

May 2004 169.70 105.00

June 2004 128.70 99.00

July 2004 119.50 100.10

August 2004 109.35 93.70

September 2004 113.95 98.40

October 2004 113.95 97.00

November 2004 118.00 99.15

December 2004 228.70 108.95

January 2005 238.60 165.05

February 2005 184.00 176.00

March 2005 197.40 155.00

Bank has 39346 shareholders as on 31.03.2005 of this14618 folios representing 67,64,847 (58.78%) sharesare in Demat Form.

Distribution of Shareholding in break up as on 31.03.2005is given below.

CATEGORY SHAREHOLDERS

No. of shares Number % on total

Upto 500 35,900 91.40

501 1000 2,160 5.50

1001 2000 789 2.01

2001 3000 218 0.50

3001 4000 88 0.20

4001 5000 45 0.11

5001 10000 81 0.21

10001 and above 65 0.11

Total 39,346 100.00


Nomination Facility

Shareholders may avail of the Nomination Facility underSection 109A of the Companies Act, 1956.

Bank Account Details

In order to avoid fraudulent encashment of dividendwarrants, the members are requested to write their BankAccount details to the Office of our Registrar and ShareTransfer Agent.

Shares held in Electronic form

All instructions regarding bank account details, which theshareholders wish to be incorporated in their dividendwarrant will have to be submitted to their depositoryparticipants.

Instructions already given by them in respect of sharesheld in physical form will not be automatically applicableto the dividend paid on shares held in electronic formand the Bank or STA will not entertain any request fordeletion / change of Bank details already printed ondividend warrants as per information received from boththe depositories.

All instructions regarding change of address, nomination,power of attorney etc., shall be given directly to theirDepository participants and the bank or STA will notentertain any such requests directly. Shareholders havingthe holdings partly in demat form and partly in physicalform, should follow the steps narrated above separately.

Share Transfer Process

Bank ensures physical shares are processed by theRegistrar and Share Transfer Agent - IntegratedEnterprises (India) Limited and approved by ShareTransfer Grievances Committee and the certificates aredispatched to the transferees within a maximum periodof 4 weeks from the date of receipt of the transferdocuments by Integrated Enterprises (India) Limited,provided if the share documents are valid in all respects.

Share transfers, dividend payments, demat requests andall other investor related activities are attended to andprocessed at the office of our Registrar and Share TransferAgent.

Shareholders’ Correspondence should be addressedto:

M/s Integrated Enterprises (India) LimitedII floor , “Kences Towers” No.1

Ramakrishna StreetNorth Usman Road, T.Nagar, Chennai – 600 017

Ph: 044-28140801/2/3 Fax: 28142479/28143378Email: [email protected]

Non - Mandatory Requirements

The Bank at present has not adopted the Non- Mandatoryrequirement in regard to Remuneration Committee,sending of half yearly performance to the Share Holdersto their Residence.

BALANCE SHEET ABSTRACT AND COMPANY’S GENERAL BUSINESS PROFILEAS PER SCHEDULE VI, PART IV OF THE COMPANIES ACT, 1956 (Rs.in 000s)

A REGISTRATION DETAILS

Registration 01377

State 18

Balance Sheet Date 31.03.2005

B CAPITAL RAISED DURING THE YEAR

Public Issue Nil

Bonus Issue Nil

Rights Issue Nil

Private Placement Nil

C POSITION OF MOBILISATION

AND DEPLOYMENT OF FUNDS

Total Liabilities 40,53,38,18

Total Assets 40,53,38,18

SOURCES OF FUNDS

Paid-up Capital 11,50,89

Reserves and Surplus 2,18,47,83

Secured Loans Nil

Unsecured Loans 68,94,37

APPLICATION OF FUNDS

Net Fixed Assets 34,10,79

Investment 11,80,86,14

Net Current Assets 2,62,17,53

Miscellaneous Expenditure Nil

Accumulated Losses Nil

D. PERFORMANCE OF THE COMPANY

Total Income 3,36,52,42

Total Expenditure 3,33,17,98

Profit Before Tax (28,69,24)

Profit After Tax 3,34,44

Earning per Share (Rs) 2.91

Dividend Rate Nil

GENERIC NAMES OF THREE PRINCIPAL PRODUCTS

OF THE COMPANY(AS PER MONETARY TERMS)

Items Code N.A

Product Description Banking Company


STATEMENT OF PROGRESS (AMOUNT IN LAKHS OF RUPEES)

Year 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05

Paid-up Capital 1135.41 1148.77 1150.86 1150.86 1150.88 1150.88 1150.88 1150.89 1150.89 1150.89

Reserve Fund & 5112.15 6600.36 8361.20 8972.08 11023.06 13126.82 15290.57 18057.72 21513.39 21847.83

Other Reserves

Deposits 91313.19 113250.99 141892.52 159100.77 196340.65 227764.40 247692.23 277050.16 329581.91 349592.51

Advances 49281.74 60838.49 75790.92 90943.14 115004.68 148023.33 156525.19 176369.82 203870.40 231771.14

Investments 39375.78 46987.77 49406.11 59208.59 76756.97 78203.92 90420.57 103657.52 133816.81 118086.14

Net Profit 1000.08 1870.29 2159.00 1432.83 2635.61 2674.48 3022.11 3416.33 4104.85 334.44

Number of Branches 191 200 200 204 205 209 211 215 224 225

Staff Position 1913 2002 1996 1957 1930 1936 1933 1983 1946 1928

Earning Per Share 8.81 16.28 18.76 12.45 22.90 23.24 26.25 29.68 35.67 2.91

Book Value 55.02 67.46 82.65 87.96 105.78 124.06 142.86 166.90 196.93 199.83

Market Price 97.77 63.13 48.35 36.10 38.12 44.42 46.17 65.98 98.72 138.20

Dividend Per 3.00 3.50 3.70 3.70 4.50 4.50 5.00 5.00 5.00 Nil

Share (Rs.)


KanjampattiKaraikudiJawahar Bazaar KarurKarur West “Vengamedu “Kathaparai “KattuputhurKattugudalur (S.O)KovilpattiKrishnagiriKumbakonamKurumbapattiLakkapuramLalgudiThambu Chetty St. Chennai

Adyar “Anna Nagar “Cathedral Road “G.N. Street, “Kodambakkam “Mount Road “Mylapore “Nungambakkam “Purasawalkam “Royapuram “Selaiyur “Triplicane “Valasarawalkam “West Tambaram “MadukkurPalace Road MaduraiThallakulam “MahadhanapuramManameduMannargudiMarandahalliMathurMayiladuthuraiMelurMettupalayamMettur DamMoolangudiMuthugapattiMuthupetMuthurNagapattinamNagercoilNamakkalNathakadaiyurNerinjipettaiNeyveliOddanchatramOlapalayamPalaniPallipalayamPanrutiPapanadPapanasam

MAHARASHTRA

NagpurAndheri MumbaiBorivali “Fort “Matunga “Vashi “PuneMADHYA PRADESH

IndoreNEW DELHI

JanpathKarol BaghPONDICHERRY

AmbagarathurKaraikalPondicherryTAMILNADU

AlathurAmbilikkaiAmburAnbil (S.O)ArakandanallurArantangiAriyalurArniAtturAvalpoonduraiBalasamudramBhuvanagiriChinnadharapuramChittodeOppanakara St.

CoimbatorePersonal Banking “Ganapathy “Gandhipuram “Kovaipudur “Ramanathapuram “R.S. Puram “Uppilipalayam “CuddaloreCumbumDharmapuriDindigulErodeGobichettipalayamGopalapattiHosurIdayakottaiIyyampalayamJalakandapuramKadambuliyur (S.O)KallakurichiKancheepuramKandiliKangayam

ANDHRA PRADESH

AdoniChittoorEluruGajuwakaGopalapatnamGunturKoti HyderabadHubsiguda “Kothapeta “Kukatpally “Malkajgiri “Secunderabad “KakinadaNandyalNelloreOngoleProdatturRajahmundrySuryapetTanukuTirupatiVijayawadaVijayawada IIVisakapatnamWarrangal

GUJARAT

AhmedabadAnandGandhinagarGandhidhamJamnagarRajkotSuratVadadora

KARNATAKA

Gandhinagar BangaloreCantonment “Citymarket “Jayanagar “Jalahalli “Ulsoor “BellaryChitradurgaDavangereHospetHubliKoramangalaMandyaMysoreRaichurRanebennurShimoga

KERALACalicutCochinPalakkadThrissurTrivandrum

PattukkottaiPennagaramPeravuraniPeriakulamPodakudyPollachiPugalurC. Pudupatti (S.O)R. PudupattiRajapalayamRajendramRasipuramBazaar Street SalemC.K. Street “Gugai “Shevapet “Swarnapuri “SankarapuramSankariSatturSeevalaperi (S.O)SendarapattiSivakasiSundarapandiyamSuriyampalayamTanjoreTenkasiTheniThiruvaiyaruThittagudiThottiyamTindivanamTiruchengodeTirukoilurTirunelveliTirupurTiruvarurBig Bazaar St. TrichySrirangam “Thillainagar “ThirukadaiyurThirukattupalliTiruthuraipoondiTiruvannamalaiTuraiyurTuticorinUdumalpetUlipuramUnjalurVadugapalayamVellakoilVelliyanaiVelloreVelur (Namakkal)VettavalamVilangudiVillupuramVirudhunagarVridhachalamYethapurWEST BENGAL

Kolkatta

BRANCH NETWORK


CHENNAI

189, Ist Floor, Aarthi Chambers, Anna Salai,

Chennai - 600 006 Tamilnadu

Off Ph : 52085253 (AGM) 28547198 (CM)

STD : 044 Telex : 041- 5016 Fax : 28547529

Mobile : 98400-99118

Email : [email protected]

MUMBAI

Sterling Centre, 2nd Floor, Andheri-Kurla Road, Chakala,

Andheri (East), Mumbai - 400 093 Maharashtra

Off Ph : 28270236, 28270237, 28270235 (DGM)

STD : 022 Mobile: 98211-32824

Telex : 118-5322 Fax : 022-28270234

Tel. ad : ELVEEBEE


SUB DIVISIONAL OFFICE, AHMEDABAD

1st Floor, Blue Star Complex, P.B. No. 34,

Near High Court, Railway Crossing, Navrangpura,

Ahmedabad - 380 014 Gujarat

Off Ph : 26564263, 26563686 STD : 079

Telex : 0121-6114LVBA Tel. Fax : 26563686

Tel. ad : LAXMIBANK

HYDERABAD

Flat No. 2A, Samrat Complex,

IInd Floor, Saifabad,

Hyderabad - 500 004 Andhra Pradesh

Off Ph : 23241904(AGM), 23212024, 23211782

STD : 040 Mobile: 98480 - 23865

Tel. Fax : 040-23212024 Tel. ad : HILLELVEBE


BANGALORE

568, 38th Cross, 11th Main, 1st Floor,

P.B. No. 4129

5th Block, Jayanagar, Bangalore - 560 041

Karnataka

Off Ph : 26345249 (AGM) 26633902 STD : 080

Mobile : 98456-60683

Tel. Fax : 080-26345249


COIMBATORE

LVB Platinum Jubilee Building,

68, Oppanakara Street,

IInd Floor, Coimbatore - 641 001 Tamil Nadu

Off Ph : 2304997, 2304843, 2383150 (AGM)

STD : 0422 Mobile: 98424-36776

Tel. Fax : 0422-2304843


KARUR

48/54, South Madavilagam Street,

Karur - 639 001 Tamil Nadu

Off Ph : 262531 (DM), 261684 STD : 04324

Mobile : 98424-56619

Tel. Fax : 04324-262531


MADURAI

97, Palace Road, P.B. No. 177, II Floor,

Madurai - 625 001 Tamil Nadu

Off Ph : 2336572, 2338213 (DM) STD : 0452

Mobile : 98421 - 65133

Telex : 0445-220 Tel. Fax : 0452-2338213


SALEM

49-A, I Floor, Advaitha Aashram Road,

Salem - 636 004. Tamil Nadu

Off Ph : 2336753, 2336751, 2336752 (DM)

STD : 0427 Mobile: 98424 - 63400

Tel. Fax : 0427-2336751


INTERNATIONAL DIVISION/DOMESTIC TREASURY

25-31, Aban House, 4th Floor, Sri Saibaba Marg. Kalagodha, Fort Mumbai - 400 023, MaharashtraOff Ph : 22822811, 22883261,22839928 (DGM) STD : 022 Fax : 22822812

Mobile : 98204 - 52642 (DGM-ID); 98202-84023(AGM-INV.CELL)Email: [email protected]; [email protected]

DIVISIONAL / SUB DIVISIONAL OFFICES :


USA & CANADA

1. HSBC BANK USA, NEW YORK

2. AMERICAN EXPRESS BANK, NEW YORK

3. TORONTO DOMINION BANK, TORONTO

EUROPE

4. HSBC BANK PLC, LONDON

5. CLYDESDALE BANK, GLASGOW

6. CITI BANK, FRANKFURT

7. DRESDNER BANK, FRANKFURT

8. DEUTSCHE BANK, ESCHBORN

9. HYPO VERIENS BANK, HAMBURG

10. ABN AMRO BANK, AMSTERDAM

11. INTESABCI SPA, MILAN

12. BANCA NAZIONALE DEL LAVORO, ROME

13. UBS AG, ZURICH

14. NATEXIS BANQUE, POPULAIRES PARIS

15. FORTIS BANK, BRUSSELS

16. DEN DANSKE BANK, COPENHAGEN

17. ZURCHER KANTONAL BANK, SWITZERLAND

LIST OF OVERSEAS CORRESPONDENT / AGENCY BANKS

ASIA PACIFIC

18. NATIONAL AUSTRALIA BANK, MELBOURNE

19. COMMONWEALTH BANK OF AUSTRALIA, SYDNEY

20. STANDARD CHARTERED BANK, TOKYO

21. HONGKONG AND SHANGHAI BANKING

CORPORATION:

HONGKONG, SINGAPORE, KUALA LUMPUR &

SYDNEY

GULF

22. SAUDI BRITISH BANK, RIYADH

23. HABIB BANK AG ZURICH, DUBAI

24. SAUDI HOLLANDI BANK, DUBAI.

Documents

DIRECTORS’ REPORT - Lakshmi Vilas Bank 2004... · 2019-06-05 · tie-ups with Reliance Capital Asset Management Limited & Franklin Templeton Asset Management (India ) Private Limited