KHALSA...Sunday, April 27, 2014 at 2:00 PM at the Crown Palace Banquet Hall located at 201-12025 Nordel Way, Surrey, B.C. V3W 1W1 (Phone 604-591-8100) The call for nominations for

KHALSACREDIT UNION

KCU, THE NAME YOU CAN BANK ON

Annual Report2013

Moving Up, Reaching Higher

slwnW irport

auqWh cVHnW, bulMdIAW CUhxw

NOTICE OF ANNUAL GENERAL MEETING,AND ELECTION OF NOMINATING COMMITTEE

The twenty-eighth Annual General Meeting of Khalsa Credit Union will be held on Sunday, April 27, 2014 at 2:00 PM at the Crown Palace Banquet Hall located at 201-12025 Nordel Way, Surrey, B.C. V3W 1W1 (Phone 604-591-8100) www.crownpalace.ca

The call for nominations for Directors of Khalsa Credit Union, issued December 31, 2013, resulted in some members putting their names forward for the three vacant positions. However, Parvkar Singh Dulai, Narinder Kaur Kahlon, and Gurminder Kaur Malik were elected by acclamation.

The election of the Nominating Committee will take place at the Annual General Meeting on April 27, 2014. Meeting starts at 2:00 PM with registration from 1:00 PM to 2:00 PM.

1. Adoption of Agenda2. Approval of Minutes of 2013 AGM3. Business Arising Out of Minutes4. Chairman’s Report5. Chief Executive O�cer’s Report6. Auditor’s Report7. Approval of Financial Statements8. Appointment of Auditors9. Report on Election of Directors10. Election of Nominating Committee11. Directors’ Honorariums12. Un�nished Business13. New Business14. Adjourn/Refreshments

Only members in good standing at January 9, 2014 will be entitled to vote at the Annual General Meeting. A member is in good standing if the member is not more than 90 days delinquent in any of the members obligations to the Credit Union and has paid for and holds the respective number of membership equity shares as set out below and has attained the age of majority – 19 years of age.

(a) 5 shares if the member is an individual(b) in the case of a joint account, 5 shares for the �rst named and 1 for each additional names person(c) 5 shares if the member is a incorporated company(d) 5 shares per partner if the member is a partnership(e) 5 shares if the member is an association

Registration: 1:00 PM - 2:00 PMMeeting Agenda

Call To OrderArdas

1

PunjabiNotice of Meeting

slwnW Awm iejlws Aqy nwmzdgI kmytI dI cox dw noits

Kwlsw krYift XUnIAn dw ATweIvW slwnW Awm iejlws AYqvwr, 27 AprYl 2014 nUM bwd dupihr 2:00 vjy krwaUn pYlys bYNkuiet hwl, #201-12025 nOrfl vyA, srI, bI.sI., vI3fbilaU 1fbilaU1 (Pon 604-591-8100) www.crownpalace.ca ivKy hovygw[

Kwlsw krYift XUnIAn dy fwierYktrW leI nwmzdgIAW leI 31 dsMbr 2013 nUM jwrI kIqy gey bulwvy dy nqIjw ieh hoieAw ik iqMn AswmIAW leI kuJ mYNbrW v`loN Awpxy nwm pyS kIqy gey[ AYpr, prvkwr isMG dUly, nirMdr kOr kwhloN Aqy gurimMdr kOr milk ibnW mukwblw cuxy gey[

nwmzdgI kmytI dI cox 27 AprYl 2014 nUM hox vwly slwnW Awm iejlws mOky kIqI jwvygI[ iejlws bwd dupihr 2:00 vjy SurU hovygw jd ik rijstrySn bwd dupihr 1:00 vjy qoN 2:00 vjy q`k hovygI[

9 jnvrI 2014 nUM ijhVy mYNbr gu`f stYNifMg ’c sn kyvl auh hI slwnW Awm iejlws ’c vot pw skx dy Xog hoxgy[ koeI vI mYNbr gu`f stYNifMg ’c hY, jykr aus mYNbr ny krYift XUnIAn pRiq mYNbr dIAW iksy vI qrHW dIAW dyxdwrIAW leI 90 idnW qoN v`D dy smyN leI kuqwhI nhIN kIqI hoeI Aqy aus ny loVINdI igxqI dy mYNbriS`p AYkuietI SyArW leI AdwiegI kIqI hoeI hY Aqy SyAr r`Ky hoey hn, ijvyN ik hyTW id`qw igAw hY Aqy auh bwlg aumr dw – mqlb 19 swl dw ho igAw hY[

(a) 5 SyAr jykr mYNbr iek ivAkqI hY (A) sWJy Kwqy dI sUrq ’c; 5 SyAr pihly nW vwly ivAkqI leI Aqy 1 SyAr hryk vDIk nW vwly ivAkqI leI (e) 5 SyAr jykr mYNbr iek ieMkwrporyt kMpnI hY (s) 5 SyAr pRiq iBAwl jykr mYNbr iek BweIvwlI kMpnI hY (h) 5 SyAr jykr mYNbr iek AYsosIeySn hY

rijstrySn: bwd dupihr 1:00 vjy qoN 2:00 vjy q`k

mIitMg dw eyjMfwSurUAwq dw bulwvw

Ardws

1. eyjMfw svIkwr 2. 2013 slwnW Awm iejlws dy kwrj vyrivAW dI mnzUrI 3. kwrj vyrivAW qoN auqpMn kMmkwr 4. cyArmYn dI irport 5. mu`K kwrj-swDk APsr dI irport 6. AwiftrW dI irport 7. iv`qI stytmYNtW dI mnzUrI 8. AwiftrW dI inXukqI 9. fwierYktrW dI cox sbMDI irport 10. nwmzdgI kmytI dI cox11. fwierYktrW dw AwnryrIAm12. AxmuìkAw kMm kwr13. nvW kMm kwr14. mIitMg mulqvI/cwh pwxI

1


1


NOTICE OF ANNUAL GENERAL MEETING,AND ELECTION OF NOMINATING COMMITTEE

The twenty-eighth Annual General Meeting of Khalsa Credit Union will be held on Sunday, April 27, 2014 at 2:00 PM at the Crown Palace Banquet Hall located at 201-12025 Nordel Way, Surrey, B.C. V3W 1W1 (Phone 604-591-8100) www.crownpalace.ca

The call for nominations for Directors of Khalsa Credit Union, issued December 31, 2013, resulted in some members putting their names forward for the three vacant positions. However, Parvkar Singh Dulai, Narinder Kaur Kahlon, and Gurminder Kaur Malik were elected by acclamation.

The election of the Nominating Committee will take place at the Annual General Meeting on April 27, 2014. Meeting starts at 2:00 PM with registration from 1:00 PM to 2:00 PM.

1. Adoption of Agenda2. Approval of Minutes of 2013 AGM3. Business Arising Out of Minutes4. Chairman’s Report5. Chief Executive O�cer’s Report6. Auditor’s Report7. Approval of Financial Statements8. Appointment of Auditors9. Report on Election of Directors10. Election of Nominating Committee11. Directors’ Honorariums12. Un�nished Business13. New Business14. Adjourn/Refreshments

Only members in good standing at January 9, 2014 will be entitled to vote at the Annual General Meeting. A member is in good standing if the member is not more than 90 days delinquent in any of the members obligations to the Credit Union and has paid for and holds the respective number of membership equity shares as set out below and has attained the age of majority – 19 years of age.

(a) 5 shares if the member is an individual(b) in the case of a joint account, 5 shares for the �rst named and 1 for each additional names person(c) 5 shares if the member is a incorporated company(d) 5 shares per partner if the member is a partnership(e) 5 shares if the member is an association

Registration: 1:00 PM - 2:00 PMMeeting Agenda

Call To OrderArdas

2

CHAIRMAN’S REPORT

We are extremely proud to report to you that Khalsa Credit Union (KCU) has continued its growth as it reached the $300 million asset milestone in 2013. This places KCU in a group with mid-sized peers in the BC credit union system. In addition KCU growth rates were better than the system average in most categories and we see the bene�ts.

Based on 2013 results, the Board of Directors was pleased to declare a dividend of 5% on Class “A” Membership Shares and Class “B” Equity Shares. We also continue to make signi�cant contributions to our communities via sponsorships, scholarships and donations. In 2013, this included a major commitment to the Fraser River Community Creamatorium Society in Abbotsford.

We have had extensive director education in order to better serve as your guardians on the Board. We have adopted a system of Enterprise Wide Risk Management to help us control and plan for the risks facing the Credit Union. We are working with manage-ment and employees on the development of policies related to Corporate Social Responsibility (CSR) including environmental sustainability and �nancial literacy as well as long range plans for our credit union’s involvement in the community in a more meaningful way. Some of the speci�c initiatives are detailed elsewhere in this report.

After many years of active service on your Board of Directors Mr. Harchand Singh Gill and Mr. Gurmail Singh Brar have decided to step down as directors after this year’s AGM. Both have made signi�cant contributions to the success of KCU and I thank them for their dedication and commitment and wish them well in future endeavours. I have also decided not to seek re-election. It has been a great honour and privilege to serve KCU and I thank members for giving me that opportunity.

We conducted an extensive search for new director candidates after developing a list of characteristics and attributes to describe the type of director that will bene�t the credit union in the future. I am con�dent that your new directors will embrace the challenge and serve you well.

In closing, I want to extend my thanks to our Chief Executive O�cer, his executive team, our branch managers and employees for their continued commitment and contributions to the success of KCU. As always, our members are the reason for our existence and their support is most appreciated. If you are happy with our service, tell your family, friends and neighbours. If you are not happy, tell us and we will address

the issue.

Respectfully Submitted

Satwant Singh SandhuChairman, Board Of Directors

2

CHAIRMAN’S REPORT

We are extremely proud to report to you that Khalsa Credit Union (KCU) has continued its growth as it reached the $300 million asset milestone in 2013. This places KCU in a group with mid-sized peers in the BC credit union system. In addition KCU growth rates were better than the system average in most categories and we see the bene�ts.

Based on 2013 results, the Board of Directors was pleased to declare a dividend of 5% on Class “A” Membership Shares and Class “B” Equity Shares. We also continue to make signi�cant contributions to our communities via sponsorships, scholarships and donations. In 2013, this included a major commitment to the Fraser River Community Creamatorium Society in Abbotsford.

We have had extensive director education in order to better serve as your guardians on the Board. We have adopted a system of Enterprise Wide Risk Management to help us control and plan for the risks facing the Credit Union. We are working with manage-ment and employees on the development of policies related to Corporate Social Responsibility (CSR) including environmental sustainability and �nancial literacy as well as long range plans for our credit union’s involvement in the community in a more meaningful way. Some of the speci�c initiatives are detailed elsewhere in this report.

After many years of active service on your Board of Directors Mr. Harchand Singh Gill and Mr. Gurmail Singh Brar have decided to step down as directors after this year’s AGM. Both have made signi�cant contributions to the success of KCU and I thank them for their dedication and commitment and wish them well in future endeavours. I have also decided not to seek re-election. It has been a great honour and privilege to serve KCU and I thank members for giving me that opportunity.

We conducted an extensive search for new director candidates after developing a list of characteristics and attributes to describe the type of director that will bene�t the credit union in the future. I am con�dent that your new directors will embrace the challenge and serve you well.

In closing, I want to extend my thanks to our Chief Executive O�cer, his executive team, our branch managers and employees for their continued commitment and contributions to the success of KCU. As always, our members are the reason for our existence and their support is most appreciated. If you are happy with our service, tell your family, friends and neighbours. If you are not happy, tell us and we will address

the issue.

Respectfully Submitted

Satwant Singh SandhuChairman, Board Of Directors

3

CHAIRMAN’S REPORT (PUNJABI)cyArmYn dI irportAsIN quhwnUM ieh irport kridAW bhuq hI mwx mihsUs krdy hW ik Kwlsw krYift XUnIAn (ky sI XU) ny Awpxy vwDy nUM jwrI rìKAw hY jd ik ieh 2013 ‘c 300 imlIAn fwlr AswisAW dy mIl p`Qr ‘qy pu`j geI[ ieh q`Q Kwlsw krYift XUnIAn nUM bI sI krYift XUnIAn isstm ‘c nwl dIAW m`D-Awk-wrI XUnIAnW dy gru`p ‘c Swml krdw hY[ ies qoN ielwvw Kwlsw krYift XUnIAn dIAW vwDy dIAW drW bhuqIAW SRyxIAW ‘c isstm dy AOsqn vwDy nwloN cMgyrIAW sn Aqy AsIN PwieidAW nUM vyK rhy hW[

2013 dy nqIijAW dy AwDwr ‘qy fwierYktrW dy borf nUM klws “ey” mYNbriS`p SyArW Aqy klws “bI” AYkuietI SyArW ‘qy 5% ifvIfYNt dw AYlwn kridAW KuSI huMdI hY[ AsIN AwpxIAW kimaUintIAW ‘c spWsriSpW, vzIiPAW Aqy dwn dyx dy zrIey v`fy Xogdwn pwauxy vI jwrI r`Ky hn[ ieMnHW ‘c 2013 ‘c Pryzr irvr kimaUintI krImytorIAm suswietI AYbtsPorf nUM v`fI vcnb`Dqw dyxw Swml hY[

borf ‘c quhwfy srpRsqW vjoN cMgyrI syvw dyx dy AwSy nwl AsIN ivsiqRq pRkwr dI fwierYktr isìKAw nUM ilAWdw hY[ Kwlsw krYift XUnIAn nUM drpyS nukswn dy frW nUM kMtrol krn qy aunHW leI XojnW bxwaux ‘c AwpxI mdd vwsqy AsIN AYNtrpRweIz vweIf irsk mYnyjmYNt dw iek isstm ApxwieAw hY[ AsIN kwrporyt soSl irspWisibiltI (sI AY~s Awr) nwl sbMDq pwilsIAW ivkisq krn vwsqy mYnyjmYNt Aqy krmcwrIAW nwl kMm kr rhy hW, ijMnHW ‘c vwqwvrx sMBwl Aqy iv`qI swKrqw dy nwl nwl kimaUintI ‘c AwpxI krYift XUnIAn dI vDyry swirQk rUp ‘c SmUlIAq vwsqy lMmI imAwd vwlIAW XojnwvW iqAwr krnW Swml hY[ kuJ ivSyS pihlkdmIAW dw ies irport ‘c hor iksy QW ivsQwr id`qw igAw hY[

fwierYktrW dy borf ‘qy srgrm syvw dy keI swlW mgroN sR. hrcMd isMG ig`l Aqy sR. gurmyl isMG brwV ny ies swl dy slwnW Awm iejlws qoN ip`CoN fwierYktrW vjoN Ahudw C`fx dw PYslw kIqw hY[ dohW jixAW ny Kwlsw krYift XUnIAn dI kwmXwbI ‘c v`fw Xogdwn pwieAw hY Aqy mYN aunHW dw aunHW dI lgn Aqy pRiqb~Dqw vwsqy DMnvwd krdw hW Aqy Biv`K dy aunHW dy au~dmW leI SuB kwmnw krdw hW[ mYN vI muV cox nw lVn dw PYslw kIqw hY[ Kwlsw krYift XUnIAn dI syvw krnW iek v`fy mwn-snmwn Aqy siqkwr dw kMm irhw hY Aqy ieh mOkw mYnUM dyx vwsqy mYN mYNbrW dw DMnvwd krdw hW[

fwierYktr iks iksm dw ivAkqI hovy, ieh ibAwn krn vwsqy guxW l`CxW Aqy ivSySqweIAW dI sUcI iqAwr krn qoN mgroN AsIN nvyN fwierYktr aumIdvwrW leI ivsiqRq Bwl kIqI, ijhVy fwierYktr Biv`K ivc Kwlsw krYift XUnIAn leI PwiedymMd swbq hox[ mYnUM ivSvwS hY ik nvyN fwierYktr cuxOqIAW nUM kbUl krngy Aqy quhwfy leI vDIAw syvw inBwauxgy[

AMq ivc mYN Awpxy mu`K kwrj-swDk APsr, aunHW dI kwrj-swDk tIm, Awpxy brWc mYnyjrW Aqy krmcwrIAW dw aunHW dI lgwqwr pRiqbDqw Aqy Kwlsw krYift XUnIAn dI sPlqw ‘c aunHW dy XogdwnW vwsqy DMnvwd krnW cwhuMdw hW[ hmySw dI qrHW swfy mYNbr hI swfI hoNd dw sb`b hn Aqy aunHW v`loN imldI ihmwieq dI sB qoN v`D SlwGw kIqI jWdI hY[ jykr qusIN swfI syvw qoN KuS ho qW Awpxy pirvwr, dosqW-im`qrW qy guAWFIAW nUM d`so[ jykr qusIN KuS nhIN ho qW swnUM d`so, AsIN quhwfI iSkwieq dw inptwrw krWgy[

siqkwr sihq,

sqvMq isMG sMDUcyArmYn, borf AwP fwierYktrz

3

CHAIRMAN’S REPORT (PUNJABI)

4

CHIEF EXECUTIVE OFFICER’S REPORT

In last year’s annual report, we outlined some of the major undertakings planned by KCU in 2013 and I am pleased to report on our progress as follows:

Mobile Web Banking - This “app” was introduced and provides members with the convenience of paying bills, transferring funds and checking balances. Mobile is the fastest growing delivery channel with the average adult checking their smart phones 150 times each day and spending 2 hours, 21 minutes doing so (up almost 1 hour from the year before). Remote deposit capture via smart phones remains on the drawing board.

Website - KCU developed an attractive new web site during the year and we are pleased to see much greater usage of the site. Online security was also improved through the addition of quali-fying questions that were developed to authenticate the identity of the user. The KCU Facebook page was upgraded and updated at the same time.

Existing Branches - The Abbotsford branch of KCU, which had been located on Clearbrook Road since 1993, had out grown its quarters. We moved the branch to spacious and attractive new premises on South Fraser Way in the fall of 2013. Members have greeted the new branch enthusi-astically with a signi�cant increase in business. We also renovated our branch in Victoria and acquired property within the vicinity of the Vancouver branch and expect to decide on reloca-tion there within the next year.

New Branches –We have obtained a comprehensive location analysis with regard to potential sites for future branches. We will be making a decision soon if there is a business case for further expansion of KCU at this time.

Ding Free ATMs - A cross Canada campaign was launched to promote the surcharge free ATMs at credit unions which are the second most frequently used banking channel in Canada so ding free usage represents signi�cant savings for consumers.

Institutional Deposits –We have been fortunate to obtain several million in institutional deposits, con�rming our strength and reputation.

Products/Services –We have diversi�ed our product mix and Rupee drafts/notes and other foreign currencies can now be purchased at any branch of KCU. Interac e-Transfer was another new service.

Operationally, we continued to grow at rates greater than other credit unions in BC with loans up 6.20%, deposits up 7.88% and assets up 8.07%. We were also pleased to welcome 756 new members to KCU, bringing total membership to 12,429. Junior members (those under the age of 19) account for 5% of total membership.

My thanks to the Board of Directors, management and all of our employ-ees for their assistance throughout 2013. I look forward to working with you in 2014 and beyond as we continue to serve our members so that we both climb the ladder of success.

Dalbir Singh Sohi, Chief Executive O£cer

5

CHIEF EXECUTIVE OFFICER’S REPORT (PUNJABI)

4

CHIEF EXECUTIVE OFFICER’S REPORT

In last year’s annual report, we outlined some of the major undertakings planned by KCU in 2013 and I am pleased to report on our progress as follows:

Mobile Web Banking - This “app” was introduced and provides members with the convenience of paying bills, transferring funds and checking balances. Mobile is the fastest growing delivery channel with the average adult checking their smart phones 150 times each day and spending 2 hours, 21 minutes doing so (up almost 1 hour from the year before). Remote deposit capture via smart phones remains on the drawing board.

Website - KCU developed an attractive new web site during the year and we are pleased to see much greater usage of the site. Online security was also improved through the addition of quali-fying questions that were developed to authenticate the identity of the user. The KCU Facebook page was upgraded and updated at the same time.

Existing Branches - The Abbotsford branch of KCU, which had been located on Clearbrook Road since 1993, had out grown its quarters. We moved the branch to spacious and attractive new premises on South Fraser Way in the fall of 2013. Members have greeted the new branch enthusi-astically with a signi�cant increase in business. We also renovated our branch in Victoria and acquired property within the vicinity of the Vancouver branch and expect to decide on reloca-tion there within the next year.

New Branches –We have obtained a comprehensive location analysis with regard to potential sites for future branches. We will be making a decision soon if there is a business case for further expansion of KCU at this time.

Ding Free ATMs - A cross Canada campaign was launched to promote the surcharge free ATMs at credit unions which are the second most frequently used banking channel in Canada so ding free usage represents signi�cant savings for consumers.

Institutional Deposits –We have been fortunate to obtain several million in institutional deposits, con�rming our strength and reputation.

Products/Services –We have diversi�ed our product mix and Rupee drafts/notes and other foreign currencies can now be purchased at any branch of KCU. Interac e-Transfer was another new service.

Operationally, we continued to grow at rates greater than other credit unions in BC with loans up 6.20%, deposits up 7.88% and assets up 8.07%. We were also pleased to welcome 756 new members to KCU, bringing total membership to 12,429. Junior members (those under the age of 19) account for 5% of total membership.

My thanks to the Board of Directors, management and all of our employ-ees for their assistance throughout 2013. I look forward to working with you in 2014 and beyond as we continue to serve our members so that we both climb the ladder of success.

Dalbir Singh Sohi, Chief Executive O£cer

5

CHIEF EXECUTIVE OFFICER’S REPORT (PUNJABI)mu`K kwrj-swDk APsr dI irportipCly swl dI slwnW irport ‘c AsIN Kwlsw krYift XUnIAn v`loN 2013 ‘c kuJ v`fy kwrjW dIAW bxweIAW geIAW XojnwvW bwry dìsAw sI Aqy mYnUM hyTW id`qy Anuswr AwpxI pRgqI bwry d`sidAW KuSI mihsUs huMdI hY: mObweIl vY~b bYNikMg - ieh “AYp” pyS kIqI geI Aqy ieh mYNbrW nUM ib`lW dI AdwiegI krn, pYsy qbdIl krn Aqy bkwieAw cY~k krn dI shUlq pRdwn krdI hY[ mObweIl sB qoN v`D qyzI nwl PYl rhI syvw pRdwngI dI pRxwlI hY, ijs ‘c AOsq bwlg hr roz 150 vwrI Awpxw smwrt Pon cY~k krdy, Aqy ieMj kridAW 2 GMty 21 imMt (swl pihlW nwloN qkrIbn 1 GMtw v`D) ibqwauNdy hn[ smwrt Pon dy zrIey dUrvrqI ifpwizt lY skxw swfy aulIky pRogrwmW ‘c hY[

vY~bsweIt - bIqy swl dOrwn Kwlsw krYift XUnIAn ny iek nvW idlkS vY~bsweIt iqAwr kIqw hY Aqy AsIN ies vY~bsweIt dI bhuq izAwdw vrqoN nUM vyKdy hoey KuSI mihsUs krdy hW[ dwKl hox skx vwly svwlW dy vwDy nwl, ijhVy sweIt dI vrqoN krn vwly dI SnwKq dI pRmwixkqw leI iqAwr kIqy gey, AwnlweIn surìKAw ‘c vI suDwr ilAWdw igAw[ iesy smyN hI, Kwlsw krYift XUnIAn dw Pysbu`k sPw vI A`pgryf Aqy A`pfyt kIqw igAw[

mOzUdw brWcW - Kwlsw krYift XUnIAn dI AYbtsPorf brWc, ijhVI 1993 qoN klIArbru`k rof ‘qy siQ`q sI, AwpxI sQwn dI smr`Qw nUM aulMG geI sI[ 2013 dI p`qJV ru`qy AsIN brWc nUM swaUQ Pryzr vyA au~pr iek v`fy Aqy idlkS nvyN sQwn ‘qy bdl id`qw[ mYNbrW ny kwrobwr ‘c iek v`fy vwDy nwl nvIN brWc dw auqSwhjnk FMg nwl svwgq kIqw[ AsIN ivktorIAw ivclI AwpxI brWc dw vI nvInIkrn kIqw Aqy vYnkUvr brWc dy lwgy-cwgy hI iek pRwprtI leI hY Aqy aus sQwn ‘qy qbdIl hox bwry PYslw Agly swl dy ivc ivc ley jwx dI Aws krdy hW[ nvIAW brWcW- AsIN Biv`K dIAW brWcW leI sMBwivq sQwnW sbMDI iek ivsiqRq sQwn ivSlySx pRwpq kr ilAw hY[ AsIN CyqI hI PYslw lvWgy, jykr ies smyN Kwlsw krYift XUnIAn dw hor ivsQwr krn dw kwrobwr p`KoN kys bxdw hY[

Krc-mukq ey tI AY~m mSInW - krYift XUnIAn ‘c srcwrj-mukq ey tI AY~m mSInW, ijhVIAW mSInW kYnyfw ‘c dUsry nMbr dI sB qoN v`D vrqI jWdI pRxwlI hn, dI mShUrI krn leI kYnyfw Br ‘c iek muihMm SurU kIqI geI sI[ so Krc- mukq vrqoN dw Bwv hY KpqkwrW/gwhkW leI v`fIAW b`cqW[

sMsQwmUlk ifpwizt - keI imlIAn dy sMsQwmUlk ifpwizt pRwpq kr skx ‘c AsIN KuS iksmq rihMdy rhy hW, ijhVI cIz swfI mzbUqI Aqy pRiqSTw dI puStI krdI hY[

pRwfkt/syvwvW - AsIN Awpxy pRwfktW ‘c vMn-svMnqw ilAWdI hY Aqy ruipAW ‘c frwPt/not Aqy hor ivdySI krMsIAW hux Kwlsw krYift XUnIAn dI iksy vI brWc ‘coN KrIdIAW jw skdIAW hn[ ieMtrYk eI-tRWsPr iek hor nvIN syvw sI[

kwrobwrI Aml dy p`KoN, AsIN krizAW ‘c 6.20%, ifpwiztW ‘c 7.88% Aqy AswisAW ‘c 8.07% dy vwiDAW sihq bI sI ivclIAW hor krYift XUnIAnW nwloN vfyrIAW drW nwl pRPulq hoxw jwrI rìKAw[ AsIN Kwlsw krYift XUnIAn ‘c 756 nvyN mYNbrW nUM jI AwieAW AwKx ‘c KuSI mihsUs krdy hW, ijMMnHW nwl swfI ku`l mYNbriSp 12,429 ho geI hY[ jUnIAr mYNbr (auh jo 19 swl qoN G`t aumr dy hn) ku`l mYNbriS`p dw 5% ih`sw bxdy hn[

myry v`loN fwierYktrW dy borf, mYnyjmYNt Aqy swfy swry krmcwrIAW v`loN 2013 dy swl dOrwn imlI shwieqw vwsqy DMnvwd[ mYN 2014 Aqy aus qoN AgWh vI quhwfy nwl kMm krn dw cwhvwn hW, jdoN AsIN Awpxy mYNbrW nUM syvwvW pRdwn krnIAW jwrI r`KWgy qW ik AwpW dovyN iDrW sPlqw dI pOVI cVHIey[

dlbIr isMG sohI, mùK kwrj-swDk APsr

5

CHIEF EXECUTIVE OFFICER’S REPORT (PUNJABI)

6

MOVING UP, REACHING HIGHER

The theme of last year’s annual report was “measuring up” and we capsulated how KCU was meeting expectations and achieving signi�cant measures of operating success. This year we are “moving up” in terms of size, grouping, transparency and sophistica-tion. We are also “reaching higher” as the following major initiatives will attest:

*Corporate Social Responsibility (CSR) is an organization-wide commitment to operate in a �nancially, socially and environmentally sustainable manner while protecting the interests of all stakeholders. Enhancing the wellness of members, employees and our communities starts at the top with good corporate governance, and �lters through the credit union’s structure via the attitudes and actions of its people.

To ensure that KCU is conversant with CSR and observant of the best practices of its peers, a joint board-management committee has been struck to review our programs/progress and establish guidelines for the future.

* Engaged and motivated employees serve as brand ambassadors and help bring an organization’s values to life. Sta� who are passionate about delivering exceptional service make a major di�erence to the success of any company.

With the foregoing in mind, KCU will be conducting an employee engagement survey in 2014 in order to establish priorities for how we can make KCU an even better place to work .

7

*Research indicates that credit union members rate their service higher than that provided by other �nancial institutions but banks are closing the gap. With ownership of smart phones rising rapidly and Internet use o� the charts, Canada is primed for a payment transformation. About 72% of credit union members have a bank account and many carry signi�cant balances with those banks. All of which begs the question, “How well are we prepared for these realities?”

To establish a baseline KCU will be conducting a comprehensive member survey to determine banking habits and behaviour, establish member needs and develop a plan to �ll them.

* Youth represent the future of any organization but reaching them and teaching them about �nancial literacy is often problematic. It is also a challenging time in our history for young people who frequently �nance their education with student loans and will have to work harder, longer and save more than previous generations to accomplish the goal of home ownership.

In order to better understand this important demographic segment, KCU will form a Youth Advisory Committee comprised of current youth members/non members with a mandate to bring peer information to the table on the needs of young people and their motivation to switch �nancial institutions.

* Enterprise risk management has become an important cog in establishing an organization’s appetite for tolerance and risk as they try to “punch above their weight” without taking undue risk. KCU has a very strong and e�cient retail side of its appre-ciations but margins are shrinking and asset diversi�cation needs to be addressed.

NOTICE OF INSURANCEAll members are reminded that under the terms and conditions of their mortgages or chattel lien, they are required to maintain insurance to the full insurable value of their property and/or chattels with loss, if any payable to Khalsa Credit Union as their inter-est may appear.

NOTICE OF PROPERTY TAXMembers are reminded that, if you have a mortgage with Khalsa Credit Union, you are required to pay your full property taxes every year.

6

MOVING UP, REACHING HIGHER

The theme of last year’s annual report was “measuring up” and we capsulated how KCU was meeting expectations and achieving signi�cant measures of operating success. This year we are “moving up” in terms of size, grouping, transparency and sophistica-tion. We are also “reaching higher” as the following major initiatives will attest:

*Corporate Social Responsibility (CSR) is an organization-wide commitment to operate in a �nancially, socially and environmentally sustainable manner while protecting the interests of all stakeholders. Enhancing the wellness of members, employees and our communities starts at the top with good corporate governance, and �lters through the credit union’s structure via the attitudes and actions of its people.

To ensure that KCU is conversant with CSR and observant of the best practices of its peers, a joint board-management committee has been struck to review our programs/progress and establish guidelines for the future.

* Engaged and motivated employees serve as brand ambassadors and help bring an organization’s values to life. Sta� who are passionate about delivering exceptional service make a major di�erence to the success of any company.

With the foregoing in mind, KCU will be conducting an employee engagement survey in 2014 in order to establish priorities for how we can make KCU an even better place to work .

7

*Research indicates that credit union members rate their service higher than that provided by other �nancial institutions but banks are closing the gap. With ownership of smart phones rising rapidly and Internet use o� the charts, Canada is primed for a payment transformation. About 72% of credit union members have a bank account and many carry signi�cant balances with those banks. All of which begs the question, “How well are we prepared for these realities?”

To establish a baseline KCU will be conducting a comprehensive member survey to determine banking habits and behaviour, establish member needs and develop a plan to �ll them.

* Youth represent the future of any organization but reaching them and teaching them about �nancial literacy is often problematic. It is also a challenging time in our history for young people who frequently �nance their education with student loans and will have to work harder, longer and save more than previous generations to accomplish the goal of home ownership.

In order to better understand this important demographic segment, KCU will form a Youth Advisory Committee comprised of current youth members/non members with a mandate to bring peer information to the table on the needs of young people and their motivation to switch �nancial institutions.

* Enterprise risk management has become an important cog in establishing an organization’s appetite for tolerance and risk as they try to “punch above their weight” without taking undue risk. KCU has a very strong and e�cient retail side of its appre-ciations but margins are shrinking and asset diversi�cation needs to be addressed.

NOTICE OF INSURANCEAll members are reminded that under the terms and conditions of their mortgages or chattel lien, they are required to maintain insurance to the full insurable value of their property and/or chattels with loss, if any payable to Khalsa Credit Union as their inter-est may appear.

NOTICE OF PROPERTY TAXMembers are reminded that, if you have a mortgage with Khalsa Credit Union, you are required to pay your full property taxes every year.

8

MOVING UP, REACHING HIGHER (PUNJABI)

9


NOTICE OF INSURANCE (PUNJABI)

NOTICE OF PROPERTY TAX (PUNJABI)

auqWh cVHnW, bulMdIAW CUhxw

ipCly swl dI slwnW irport dw mUl ivSw “mwpxw qolxw” sI Aqy AsIN swr rUp ‘c dìsAw sI ik ikvyN Kwlsw krYift XUnIAn AwSwvW nUM pUrIAW kr rhI Aqy kwrobwrI AmlW ‘c v`fI kwmXwbI pRwpq kr rhI sI[ ies swl AsIN Awpxy Akwr, gru`p bxwaux, pwrdrSqw Aqy brIkbInI dy mwmilAW ‘c “auqWh cVH rhy” hW[ AsIN “bulMdIAW vI CUh rhy” hW, ijvyN ik hyT ilKy v`fy au~dm pRmwxq krngy:

*kwrporyt soSl irspWisibltI (sI AY~s Awr) swry stykholfrW dy ih`qW dI rwKI kridAW hoieAW iv`qI, swmwijk Aqy vwqwvrixk qOr ‘qy itkxXog FMg nwl kwrobwr krn dI iek sMsQw Br dI pRiqbDqw hY[ Awpxy mYNbrW, krmcwrIAW Aqy AwpxIAW kimaUintIAW dI KuShwlI nUM AgWh vDwaux dw Aml vDIAw kwrporyt pRSwsn nwl au~pr qoN SurU huMdw hY Aqy ies ivcly lokW dy vqIirAW Aqy kwrjW dy zrIey krYift XUnIAn dy FWcy ivc au~qr jWdw hY[

ieh XkInI bxwaux leI ik Kwlsw krYift XUnIAn sI AY~s Awr qoN jwxUM hY Aqy Awpxy nwl dIAW XUnIAnW dy au~qm kMmkwrI AmlW nUM ApxwauNdI hY, swfy pRogrwmW/pRgqI dw punr-inrIKx krn Aqy Biv`K vwsqy gweIflweInW sQwpq krn vwsqy borf-mYnyjmYNt dI iek sWJI kmytI bxweI geI hY[

*lgn vwly Aqy auqSwhjnk krmcwrI tkswlI dUqW vjoN syvw inBwauNdy hn Aqy iksy sMsQw dy mùlW nUM jIvMq bxwaux ‘c mdd krdy hn[ ijhVw stwP byimswl syvwvW pRdwn krn sbMDI auqsuk hovy auh iksy vI kMpnI dI kwmXwbI ‘c v`fw Prk pwauNdw hY[

AgWh vDx nUM iDAwn ‘c r`KidAW, ies bwry pRQmqwvW sQwpq krn Kwqr ik AsIN Kwlsw krYift XUnIAn nUM kMm krn dI hor cMgyrI QW ikvyN bxw skdy hW, Kwlsw krYift XUnIAn 2014 ‘c kmrcwrIAW dI lgn bwry iek srvyKx krvweygI[

8


9


NOTICE OF INSURANCE (PUNJABI)

NOTICE OF PROPERTY TAX (PUNJABI)

*Koj drswauNdI hY ik krYift XUnIAn mYNbr aunHW nUM imldI syvw nUM hor iv`qI sMsQwvW duAwrw id`qIAW jwdIAW syvwvW nwloN cMgyrw imQdy hn prMqU bYNk ies iv`Q iv`Q nUM Br rhy hn[ smwrt Pon dI qyzI nwl vD rhI mwlkI Aqy ieMtrnY~t dI byqhwSw vrqoN nwl kYnyfw AdwiegIAW dy FMgW ‘c pirvrqn leI iqAwr hoieAw hY[ qkrIbn 72% krYift XUnIAn mYNbrW dw bYNk Kwqw vI hY Aqy aunHW ‘coN keIAW dy aunHW dy bYNkW ‘c v`fI mwqrw ‘c pYsy jmW hn[ ieh swrw kuJ svwl KVw krdw hY, “ienHW AslIAqW vwsqy AsIN ikMnI ku cMgI qrHW iqAwr hoey hW?”

iek AwDwriSlw imQx leI Kwlsw krYift XUnIAn mYNbrW dIAW bYNikMg dIAW AwdqW Aqy ivhwr jwxn, mYNbrW dIAW loVW imQx Aqy aunHW nUM pUrIAW krn vwsqy XojnW iqAwr krn leI mYNbrW dw iek ivsiqRq srvyKx krvweygI[

*nOjuAwn iksy vI sMsQw dy Biv`K dI pRiqinDqw krdy hn prMqU aunHW q`k phuMc krnI Aqy aunHW nUM iv`qI swKrqw bwry isKwauxw Aksr muSiklW BirAw kMm huMdw hY[ nOjuAwn lokW leI swfy ieiqhws ‘c ieh smW cuxOqIjnk vI hY, ijhVy Aksr AwpxI pVHweI dy Krcy pUry krn leI ividAwrQIAW nUM imlx vwly krzy lYNdy hn Aqy ijMnHW nUM Gr dI mlkIAq dw Awpxw inSwnW pUrw krn leI Awpxy qoN pihlIAW pIVHIAW nwloN vDyry sKq imhnq, vDyyry kMm Aqy vDyry b`cq krnI pvygI[

jnsMiKAw dy ies mh`qvpUrn ih`sy nUM vDyry cMgI qrHW smJx Kwqr, Kwlsw krYift XUnIAn mOjUdw nOjuAwn mYNbrW/nwn-mYNbrW dI iek XUQ AYfvwiezrI kmytI dw inrmwx krygI ijsdw kMm hovygw nOjuAwn lokW dIAW loVW Aqy iv`qI sMsQwvW bdlx leI aunHW nUM pRyrn bwry jwxkwrI swhmxy ilAwauxw[

*iksy sMsQw dI smr`Qw Aqy Kqry vwsqy rucI nUM inrDwrq krn leI, jdoN auh sMsQwvW koeI Axauic`q Kqrw auTwaux qoN ibnW AwpxI “cwdr qoN bwhr pYr pswrn” dI koiSS krdIAW hn, AYNtrpRweIz irsk mYnyjmYNt iek mh`qvpUrn QMm bx igAw hY[ Kwlsw krYift XUnIAn kol AwpxI mu`l-ivRDI dw iek bVw mzbUq Aqy inpuMn pRkwr dw irtyl vwlw pwsw hY prMqU lwB dIAW guMzwieSW Gt rhIAW hn Aqy AswisAW ‘c ivivDqw ilAwaux nwl inptx dI loV hY[

bImyN dw noitsswry mYˆbrW ƒ Xwd idvwieAw jWdw hY ik aunHW dIAW mwrtgyjW jW cYtl lIAn dIAW SrqW qy zrUrqW dy qihq aunWH ƒ zrUrq hY ik auh AwpxIAW pRwprtIAW Aqy/jW cYtlW dy ku`l bImw Xog mu`l vwsqy aunHW dw bImw krvw ky r`Kx ijs ’c ieh hovy ik aunHW dw koeI nukswn ho jwx dI sUrq ’c bImy dI rkm Kwlsw krYift XUnIAn ƒ imlx Xog hovy[

pRwprtI tYks dw noitsmYNbrW nUM Xwd idvwieAw jWdw hY ik, jykr quhwfI mOrtgyj Kwlsw krYift XUnIAn nwl hY, qW quhwnUM hr swl Awpxw pUrw pRwprtI tYks Adw krn dI zrUrq hY[

10

Report of the Independent Auditor on the Summary Financial Statements

To the Members ofKhalsa Credit Union

The accompanying summary financial statements which comprise the Summary Statement of FinancialPosition as at December 31, 2013, the Summary Statement of Comprehensive Income, Changes inMembers' Equity and Cash Flows for the year ended December 31, 2013. We expressed an unmodifiedaudit opinion on those financial statements in our report dated March 1, 2014. Those financialstatements, and the summary financial statements, do not reflect the effects of events that occurredsubsequent to the date of our report on those financial statements.

The summary financial statements do not contain all the disclosures required by International FinancialReporting Standards. Reading the summary financial statements, therefore, is not a substitute forreading the audited financial statements of Khalsa Credit Union.

Management's Responsibility for the Summary Financial Statements

Management is responsible for the preparation of the summary of the audited financial statements.

Auditor's Responsibility

Our responsibility is to express an opinion on the summary financial statements based on ourprocedures, which were conducted in accordance with Canadian Auditing Standard (CAS) 810,"Engagements to Report on Summary Financial Statements."

Opinion

In our opinion, the summary financial statements derived from the audited financial statements ofKhalsa Credit Union for the year ended December 31, 2013 are a fair summary of those financialstatements.

Chartered Accountants

Vancouver, British ColumbiaMarch 1, 2014

Tel: 604 688 5421 Fax: 604 688 5132 [email protected] www.bdo.ca

BDO Canada LLP 600 Cathedral Place 925 West Georgia Street Vancouver BC V6C 3L2 Canada

11

Khalsa Credit UnionSummary Statement of Financial Position

310213 rebmeceD 2012

AssetsCash $ 19,236,319 $ 18,176,963Investments 22,278,209 20,629,109Current tax receivables 77,647 -Prepaid expenses 317,382 480,781Derivative financial instrument 947,386 823,080Member loans 249,869,134 235,305,858Property and equipment 3,320,666 1,862,463Intangible asset 34,192 48,846Investment properties 4,784,184 1,062,865Deferred tax asset 183,174 151,976

$ 301,048,293 $ 278,541,941

LiabilitiesAccounts payable and accruals $ 346,996 $ 455,086

177,39-selbayap xat tnerruCDistribution payable on member shares 154,936 147,312Index linked deposit liability 941,386 817,080Member deposits 281,323,414 260,554,064Member shares 137,604 122,403

Total Liabilities 282,904,336 262,189,716

Members' EquityShare capital 3,049,031 2,879,248Retained earnings 15,094,926 13,472,977

Total Members' Equity 18,143,957 16,352,225

$ 301,048,293 $ 278,541,941

Director

Director

Signed on behalf of the Board of Directors by:

10

Report of the Independent Auditor on the Summary Financial Statements

To the Members ofKhalsa Credit Union

The accompanying summary financial statements which comprise the Summary Statement of FinancialPosition as at December 31, 2013, the Summary Statement of Comprehensive Income, Changes inMembers' Equity and Cash Flows for the year ended December 31, 2013. We expressed an unmodifiedaudit opinion on those financial statements in our report dated March 1, 2014. Those financialstatements, and the summary financial statements, do not reflect the effects of events that occurredsubsequent to the date of our report on those financial statements.

The summary financial statements do not contain all the disclosures required by International FinancialReporting Standards. Reading the summary financial statements, therefore, is not a substitute forreading the audited financial statements of Khalsa Credit Union.

Management's Responsibility for the Summary Financial Statements

Management is responsible for the preparation of the summary of the audited financial statements.

Auditor's Responsibility

Our responsibility is to express an opinion on the summary financial statements based on ourprocedures, which were conducted in accordance with Canadian Auditing Standard (CAS) 810,"Engagements to Report on Summary Financial Statements."

Opinion

In our opinion, the summary financial statements derived from the audited financial statements ofKhalsa Credit Union for the year ended December 31, 2013 are a fair summary of those financialstatements.

Chartered Accountants

Vancouver, British ColumbiaMarch 1, 2014

Tel: 604 688 5421 Fax: 604 688 5132 [email protected] www.bdo.ca

BDO Canada LLP 600 Cathedral Place 925 West Georgia Street Vancouver BC V6C 3L2 Canada

11

Khalsa Credit UnionSummary Statement of Financial Position

310213 rebmeceD 2012

AssetsCash $ 19,236,319 $ 18,176,963Investments 22,278,209 20,629,109Current tax receivables 77,647 -Prepaid expenses 317,382 480,781Derivative financial instrument 947,386 823,080Member loans 249,869,134 235,305,858Property and equipment 3,320,666 1,862,463Intangible asset 34,192 48,846Investment properties 4,784,184 1,062,865Deferred tax asset 183,174 151,976

$ 301,048,293 $ 278,541,941

LiabilitiesAccounts payable and accruals $ 346,996 $ 455,086

177,39-selbayap xat tnerruCDistribution payable on member shares 154,936 147,312Index linked deposit liability 941,386 817,080Member deposits 281,323,414 260,554,064Member shares 137,604 122,403

Total Liabilities 282,904,336 262,189,716

Members' EquityShare capital 3,049,031 2,879,248Retained earnings 15,094,926 13,472,977

Total Members' Equity 18,143,957 16,352,225

$ 301,048,293 $ 278,541,941

Director

Director

Signed on behalf of the Board of Directors by:

12

Khalsa Credit UnionSummary Statement of Comprehensive Income

310213 rebmeceD dedne raey eht roF 2012

Interest revenueInterest on member loans $ 9,951,661 $ 9,695,292Other interest revenue 253,724 232,257

10,205,385 9,927,549Interest and loan related expenses

Interest on member deposits 3,970,778 3,262,103Other interest expense 80,136 70,679Provision for credit losses 51,661 100,543

4,102,575 3,433,325

Financial margin 6,102,810 6,494,224

081,352,1 emocni rehtO 1,259,616

7,355,990 7,753,840Non-interest and operating expenses

Consulting 202,489 239,504Depreciation 310,346 338,277Donations 137,654 143,959Employee salaries and benefits 2,827,388 2,791,162General operating and administrative 1,779,098 1,667,255Professional fees 115,179 105,753

Total non-interest expenses 5,372,154 5,285,910

638,389,1sexat emocni erofeb emocnI 2,467,930

Provision (recovery) for income taxesCurrent income tax 261,519 352,074Deferred income tax (31,198) (1,198)

230,321 350,876

Comprehensive income for the year $ 1,753,515 $ 2,117,054

13

Khalsa Credit UnionSummary Statement of Changes in Members' Equity

For the year ended December 31

Members'Shares

RetainedEarnings Total

Balance at January 1, 2012 $ 2,739,607 $ 11,483,553 $ 14,223,160

450,711,2450,711,2-emocni teN)036,721()036,721(- srebmem ot snoitubirtsiD

146,931-146,931serahs 'srebmem fo ecnaussi teN

Balance on December 31, 2012 $ 2,879,248 $ 13,472,977 $ 16,352,225




12

Khalsa Credit UnionSummary Statement of Comprehensive Income

310213 rebmeceD dedne raey eht roF 2012

Interest revenueInterest on member loans $ 9,951,661 $ 9,695,292Other interest revenue 253,724 232,257

10,205,385 9,927,549Interest and loan related expenses

Interest on member deposits 3,970,778 3,262,103Other interest expense 80,136 70,679Provision for credit losses 51,661 100,543

4,102,575 3,433,325

Financial margin 6,102,810 6,494,224

081,352,1 emocni rehtO 1,259,616

7,355,990 7,753,840Non-interest and operating expenses

Consulting 202,489 239,504Depreciation 310,346 338,277Donations 137,654 143,959Employee salaries and benefits 2,827,388 2,791,162General operating and administrative 1,779,098 1,667,255Professional fees 115,179 105,753

Total non-interest expenses 5,372,154 5,285,910

638,389,1sexat emocni erofeb emocnI 2,467,930

Provision (recovery) for income taxesCurrent income tax 261,519 352,074Deferred income tax (31,198) (1,198)

230,321 350,876

Comprehensive income for the year $ 1,753,515 $ 2,117,054

13

Khalsa Credit UnionSummary Statement of Changes in Members' Equity

For the year ended December 31

Members'Shares

RetainedEarnings Total

Balance at January 1, 2012 $ 2,739,607 $ 11,483,553 $ 14,223,160







14

Khalsa Credit UnionSummary Statement of Cash Flows

3102 13 rebmeceD dedne raey eht roF 2012

Operating Activities

515,357,1$raey eht rof emocni teN $ 2,117,054Adjustments for non-cash items:

Depreciation of property and equipment, intangibles, andinvestment property 310,346 338,277

Provision for credit losses 51,661 100,543Deferred tax asset (31,198) (1,198)Dividends on Class B membership equity shares (131,566) (127,630)

1,952,758 2,427,046Changes in member activities

Net increase in member loans (14,614,937) (17,567,803)Net increase in deposits 20,769,350 22,033,667

6,154,413 4,465,864

Change in other assets and other liabilities (101,385) 454,206

687,500,8seitivitca gnitarepo morf swolfni hsac latoT 7,347,116

Investing ActivitiesNet (increase)/decrease in investments (1,649,100) (1,265,955)Purchases of property and equipment (1,686,382) (127,540)Additions to investment properties (3,780,731) -

Total cash outflows from investing activities (7,116,213) (1,393,495)

Financing ActivitiesNet increase in equity shares 169,783 139,641

653,950,1hsac ni esaercni teN 6,093,262

369,671,81raey fo gninnigeb ,hsaC 12,083,701

913,632,91$raey fo dne ,hsaC $ 18,176,963

15

Report on Director Compensation:Whereas:The Directors appointed a committee of members to review the issue of their compensation. Those members were Mr. Randeep Singh Sarai, Mr. Surjit Singh Virk and Mr. Gurnaik Singh Brar.

Whereas:The committee met on several occasions. They reviewed the work and commitment expected of KCU directors. They reviewed the compensation of other directors in the credit union system. Plus they reviewed best practices in director compensation.

Whereas:The Committee recommended to the Board of Directors:

Each director should receive:$250 for board meetings $150 for committee meetings

Committee chairs would receive $50 extra for each meeting, re�ecting the additional work expected of them

For Directors travelling to meetings, they should be compensated as follows:Travel time:

more than 1½ hours -$100more than 30 min -$25

To be e�ective after AGM 2014Whereas:Considering the Board’s current meeting schedule, if these recommendations were to be implemented, it would total $68,000 approximately.

Motion: “Therefore, be it resolved the membership approves $70,000 as the allowable amount for board compensation.”

Report on Director Compensation (Punjabi)

15











14

Khalsa Credit UnionSummary Statement of Cash Flows

3102 13 rebmeceD dedne raey eht roF 2012

Operating Activities

515,357,1$raey eht rof emocni teN $ 2,117,054Adjustments for non-cash items:

Depreciation of property and equipment, intangibles, andinvestment property 310,346 338,277

Provision for credit losses 51,661 100,543Deferred tax asset (31,198) (1,198)Dividends on Class B membership equity shares (131,566) (127,630)

1,952,758 2,427,046Changes in member activities

Net increase in member loans (14,614,937) (17,567,803)Net increase in deposits 20,769,350 22,033,667

6,154,413 4,465,864

Change in other assets and other liabilities (101,385) 454,206

687,500,8seitivitca gnitarepo morf swolfni hsac latoT 7,347,116

Investing ActivitiesNet (increase)/decrease in investments (1,649,100) (1,265,955)Purchases of property and equipment (1,686,382) (127,540)Additions to investment properties (3,780,731) -

Total cash outflows from investing activities (7,116,213) (1,393,495)

Financing ActivitiesNet increase in equity shares 169,783 139,641

653,950,1hsac ni esaercni teN 6,093,262

369,671,81raey fo gninnigeb ,hsaC 12,083,701

913,632,91$raey fo dne ,hsaC $ 18,176,963

15










Report on Director Compensation (Punjabi)fwierYktrW dy muAwvzy bwry irport:jdoN ik:fwierYktrW ny aunHW dy muAwvzy dy mu`dy dI punr-pVcol krn vwsqy mYNbrW dI iek kmytI nwmzd kIqI[ auh mYNbr sn sR. rxdIp isMG srwey, sR. surjIq isMG ivrk Aqy sR. gurnyk isMG brwV[

jdoN ik:kmytI ny keI vwr mIitMgW kIqIAW[ aunHW ny Kwlsw krYift XUnIAn dy fwierYktrW koloN Aws kIqy jWdy kMm Aqy pRiqbDqw dI punr-pVcol kIqI[ aunHW nyy krYift XUnIAn isstm ‘c hor fwierYktrW dy muAwvzy dI punr-pVcol kIqI[ ies qoN ielwvw aunHW ny fwierYktrW dy muAwvzy dy mwmly ‘c jo au~qm sI, ausdI punr-pVcol kIqI[

jdoN ik: kmytI ny fwierYktrW dy borf nUM ieh isPwrSW kIqIAW: hryk fwierYktr nUM imlnW cwhIdw hY: 250 fwlr borf mIitMgW leI 150 fwlr kmytI mIitMgW leI kmytIAW dy cyArmYn, aunHW koloN Aws kIqy jWdy vwDU kMm dy bdly hryk mIitMg leI 50 fwlr vwDU pRwpq krngy[ ijhVy fwierYktr mIitMgW ‘c sPr krky AwauNdy hn, aunHW nUM hyT id`qy Anuswr muAwvzw imlxw cwhIdw hY: sPr dw smW: 1½ GMty qoN izAwdw - 100 fwlr 30 imMt qoN izAwdw - 25 fwlr 2014 dy slwnW Awm iejlws qoN mgroN lwgU hovygw

jdoN ik:borf dI mIitMgW dI mOzUdw sUcI nUM iDAwn ‘c r`KidAW, jykr ieh isPwrSW lwgU krnIAW hoxgIAW qW ieMnHW dw kul Krcw qkrIbn 68,000 fwlr hovygw[

mqw: “ies leI, ieh PYslw kIqw jWdw hY ik mYNbriS`p borf dy muAwvzy leI KrcI jw skx vwlI rkm vjoN 70,000 fwlr mnzUr krdI hY[”

15











16

MISSIONTo be the most successful Sikh Credit Union. To care about our

community and contribute to Sikh education, culture and religion.To be an environmentally conscious and committed organization

that is responsive to member-owners.

VISIONTo be the Sikh community’s �rst choice for �nancial services.

VANCOUVER5963 Fraser Street

Vancouver, BC V5W 2Z6

VICTORIA1-3318 Oak Street

Victoria, BC V8X 1R1

NEWTONUnit #2-7288 137th Street

Surrey, BC V3W 1A3

ABBOTSFORD32112 South Fraser WayAbbotsford, BC V2T 1W4

SURREY8788 120th Street

Surrey, BC V3W 3N6

HEAD OFFICE3rd Floor - 8788 120th St

Surrey, BC V3W 3N6

Central Phone System. One Number Reaches All.Phone: 604-507-6400

Toll Free: 1-800-324-6747

16

MISSIONTo be the most successful Sikh Credit Union. To care about our

community and contribute to Sikh education, culture and religion.To be an environmentally conscious and committed organization

that is responsive to member-owners.

VISIONTo be the Sikh community’s �rst choice for �nancial services.

VANCOUVER5963 Fraser Street

Vancouver, BC V5W 2Z6

VICTORIA1-3318 Oak Street

Victoria, BC V8X 1R1

NEWTONUnit #2-7288 137th Street

Surrey, BC V3W 1A3

ABBOTSFORD32112 South Fraser WayAbbotsford, BC V2T 1W4

SURREY8788 120th Street

Surrey, BC V3W 3N6

HEAD OFFICE3rd Floor - 8788 120th St

Surrey, BC V3W 3N6

Central Phone System. One Number Reaches All.Phone: 604-507-6400

Toll Free: 1-800-324-6747

Dalbir Singh SohiChief Executive Ocer

Dalbir Singh MehtaSenior Manager

Operations

Kuldip Singh SidhuNewton

Ranjit Singh GillSurrey

Maninderjit Kaur GrewalAbbotsford

Manjit Singh BediVancouver

Gurpardeep Singh MarwahaVictoria

Surjit Singh SodhiDirector

Gurmail Singh BrarDirector

BOARD OF DIRECTORS

Satwant Singh SandhuChairman

BRANCH MANAGERS

Harchand Singh GillDirector

Jaswinder Singh GillSecretary

Harinder Singh SohiDirector

Jatinderpaul Singh DhallaDirector

Daljit Singh SidhuVice Chairman

Harpal SinghDirector

Jagdeep Kaur KangSenior Manager

Finance & Technology

Jagjit KaurExecutive Secretary

EXECUTIVE

Sukhbir Singh HeersahotaManager

Internal Controls

www.khalsacreditunion.ca

Documents

KHALSA...Sunday, April 27, 2014 at 2:00 PM at the Crown Palace Banquet Hall located at 201-12025 Nordel Way, Surrey, B.C. V3W 1W1 (Phone 604-591-8100) The call for nominations for