(Rs. in crores)
31 March, 2011 31 March, 2010
Opening balance at the beginning
of the year 0.21 4.51
Additions during the year 4.78 0.04
Reductions on account of payments
during the year - (0.27)
Reductions on account of
reversals during the year - (4.07)
Closing balance at the
end of the year 4.99 0.21
2.2.13 Small and Micro Industries
Under the Micro, Small and Medium Enterprises Development Act, 2006
which came into force from 2 October, 2006, certain disclosures are
required to be made relating to Micro, Small and Medium enterprises.
There have been no reported cases of delays in payments to micro and
small enterprises or of interest payments due to delays in such
payments. The above is based on the information available with the Bank
which has been relied upon by the auditors.
2.2.14 Description of contingent liabilities:
a) Claims against the Bank not acknowledged as debts
These represent claims filed against the Bank in the normal course of
business relating to various legal cases currently in progress. These
also include demands raised by income tax and other statutory
authorities and disputed by the Bank.
b) Liability on account of forward exchange and derivative contracts
The Bank enters into foreign exchange contracts, currency
options/swaps, interest rate futures and forward rate agreements on its
own account and for customers. Forward exchange contracts are
commitments to buy or sell foreign currency at a future date at the
contracted rate. Currency swaps are commitments to exchange cash flows
by way of interest/principal in two currencies, based on ruling spot
rates. Interest rate swaps are commitments to exchange fixed and
floating interest rate cash flows. Interest rate futures are
standardised, exchange-traded contracts that represent a pledge to
undertake a certain interest rate transaction at a specified price, on
a specified future date. Forward rate agreements are agreements to pay
or receive a certain sum based on a differential interest rate on a
notional amount for an agreed period. A foreign currency option is an
agreement between two parties in which one grants to the other the
right to buy or sell a specified amount of currency at a specific price
within a specified time period or at a specified future time.
c) Guarantees given on behalf of constituents
As a part of its banking activities, the Bank issues guarantees on
behalf of its customers to enhance their credit standing. Guarantees
represent irrevocable assurances that the Bank will make payments in
the event of the customer failing to fulfill its financial or
performance obligations.
d) Acceptances, endorsements and other obligations
These include documentary credit issued by the Bank on behalf of its
customers and bills drawn by the Banks customers that are accepted or
endorsed by the Bank.
e) Other items
Other items represent outstanding amount of bills rediscounted by the
Bank, estimated amount of contracts remaining to be executed on capital
account and commitments towards underwriting and investment in equity
through bids under Initial Public Offering (IPO) of corporates as at
the year end.
2.2.15 Previous year figures have been regrouped and reclassified,
where necessary to conform to current years presentation.
|