The following additional disclosures have been made taking into account
 the requirements of accounting standards and RBI guidelines in this
 regard.
 
 A.  DISCLOSURE IN TERMS OF ACCOUNTING STANDARDS APPLICABLE TO THE BANK.
 
 1.  Fixed Assets :
 
 1.1 The immovable properties owned by the bank (Premises & Land -
 referred to as immovable properties) other than properties
 purchased/acquired after 1st April 2007 have been revalued on 31st
 March 2008. The said revaluation has been carried out in accordance
 with the policy laid down by the Board. Accordingly, the value of all
 such immovable properties owned by the bank, (excluding properties
 where there are certain claims by third parties in regard to the said
 property) has been taken as valued by independent valuers as at 31st of
 March 2008. The net appreciation in value Rs.387.56 crores as
 determined by the valuers has been credited to Capital Reserves
 (Revaluation Reserve).
 
 1.2 In accordance with the Guidance note on treatment of Reserves
 created on revaluation of fxed assets issued by the Institute of
 Chartered Accountants of India, the additional depreciation relatable
 to revaluation amounting to Rs.6.95 crores is adjusted against
 Revaluation Reserve by transfer to Proft & Loss account.
 
 1.3 As a result of changes in the rates of depreciation of revalued
 immovable properties over their remaining estimated useful lives as
 stated in Schedule 17, additional depreciation of Rs.0.15 crores as
 compared to earlier accounting periods has been charged to the Proft &
 Loss account.
 
 1.4 Registration formalities are pending in respect of properties
 valuing Rs4.97 crores (previous year Rs.4.97 crores)
 
 1.5 Assets costing less than Rs.5000/- is not written off to Proft &
 Loss account and depreciation is charged on such assets as per bank’s
 policy.
 
 1.6 While providing depreciation 5% of original cost is retained in all
 assets.
 
 2.  Intangible Assets :
 
 2.1 In accordance with Accounting Standard (AS) 26 on “Intangible
 Assets” issued by the Central Government under the Companies
 (Accounting Standards) Rules 2006, operating and banking software,
 integral to banking business having book value of Rs.0.58 crores
 (previous year Rs.1.86 crores) is capitalized to computers subjected to
 depreciation and other software of non-integral nature amounting to
 Rs.0.01 crores (previous year Rs.0.14 crores) is charged off to Proft &
 Loss A/c.
 
 3.  Foreign Exchange Transactions :
 
 3.1 In accordance with Accounting Standard 11 on Accounting for the
 effects of changes in foreign exchange rates issued by the Central
 Government under the Companies (Accounting Standards) Rules 2006, the
 Bank had translated the year end balances at Balance Sheet date at
 FEDAI rates.
 
 3.2 As per paragraph 10 of AS 11, the transactions relating to foreign
 currency assets (PCFC/EBRD/ Loans etc.) and liabilities (FCNRB/ EEFC/
 RFC etc.) are recorded at notional rates revised on monthly basis. All
 foreign currency assets and liabilities are revalued at weekly FEDAI
 rates to refect the weekly position at current rates.
 
 4.  Employee benefts :
 
 In pursuance of AS 15 on Employee Benefts, issued by the Central
 Government under the Companies (Accounting Standards) Rules 2006, the
 following disclosures have been made:
 
 4.2 Pension
 
 Pursuant to the adoption of the standard, the transitional liability of
 the Bank amounted to Rs.97.47 crores. As permitted by para 145(b) of
 AS-15 on Employee Benefts, one-ffth of the transitional liability has
 been recognized as an expense in the statement of Proft & Loss account
 amounting to Rs.19.50 crores (previous year Rs.19.50 crores). Balance
 of unrecognized transitional liability as on 31st March 2010 is
 Rs.38.97 crores.
 
 4.3 The Guidance on Implementing AS 15 on Employee Benefts issued by
 the Accounting Standard Board (ASB) states that beneft involving
 employer established provident funds, which require interest short fall
 to be recompensated are to be considered as defned beneft plans.
 Pending issuance of the guidance note from the Actuarial Society of
 India, the Bank is unable to reliably measure provident fund liability.
 Accordingly, the Bank is unable to disclose the related information.
 
 6.  Related Party Disclosures
 
 List of related parties:
 
 (a) Key Managerial Personnel
 
 Shri P. L. Ahuja –Managing Director and Chief Executive Offcer up to
 20.11.2009
 
 Shri G. Padmanabhan — Managing Director and Chief Executive Offcer
 w.e.f. 20.11.2009
 
 (i) Relatives of the Directors referred to in item (a) above.
 
 NIL 
 
 (ii) List of enterprises owned by the directors referred to in item (a)
 above.
 
 NIL
 
 (b) Associates
 
 The above disclosures have been made in accordance with AS 18 – Related
 Party Transactions and RBI guidelines for related party disclosures.
 
 Further to the above, certain transactions with Directors / other
 parties are disclosed hereunder as a matter of good governance,
 although these transactions do not fall within the meaning of “Related
 Parties”, within the meaning of clause 49 of Listing Agreement.
 
 a.  Bank has taken on lease the Branch offce premises at Pulgaon
 admeasuring 600 sq.ft. area on a lease rent of Rs.10000/- per month
 from Pulgaon Cotton Mills which is a 100% subsidiary of Jaibharat
 Textile Ltd., a company in which Shri Saurabh Tayal, son of Dr. Pravin
 Kumar Tayal, brother of Shri Sanjay Kumar Tayal (Director of the Bank)
 is director. ; During the year 2009-10 amount paid is Rs.1,20,000/-(
 previous year Rs.1,20,000/-).
 
 b.  Bank has taken on lease the branch offce premises at Brahmani
 Kalmeshwar admeasuring 600 sq.ft. area on a lease rent of Rs.10000/-
 per month from Kalmeshwar Textiles Mills Ltd. which is a 100%
 subsidiary of KSL Realties and Infrastructure Ltd., a company in which
 Shri Saurabh Tayal, son of Dr. Pravin Kumar Tayal, brother of Shri
 Sanjay Kumar Tayal (Director of the Bank) is director. lease deed of
 premises has not been executed. However, provision of Rs.1,20,000/- has
 been made for the year 2009-10 (previous year Rs.1,20,000/-).
 
 c.  Bank has taken on lease the branch offce premises at Piparia
 (Silvasa) admeasuring 600 sq.ft. area on a lease rent of Rs.7500/- per
 month from M/s Eskay Kn’t (India) Ltd., a company in which Shri Navin
 Kumar Tayal, brother of Shri Sanjay Kumar Tayal (Director of the Bank)
 is director. During the year 2009-10 amount paid is Rs.1,03,450/-(
 previous year Rs.90,000/-).
 
 d.  Bank has taken on lease the branch offce premises at Samarvani
 (Silvasa) admeasuring 800 sq.ft. area on a lease rent of Rs.12000/- per
 month from M/s Krishna Knitwear Technology Ltd., a company in which
 Shri Sanjay Kumar Tayal, Director of the Bank is director. During the
 year 2009-10 amount paid is Rs.1,65,600/-( previous year
 Rs.1,57,055/-).
 
 e.  Bank has taken on lease the branch offce premises at Umergaon
 (Silvasa) admeasuring 1000 sq.ft. area on a lease rent of Rs.10,000/-
 per month from M/s Krishna Lifestyle Technologies Ltd. in which Shri
 Navin Kumar Tayal, brother of Shri Sanjay Kumar Tayal (Director of the
 Bank) is director. During the year 2009-10 amount paid is
 Rs.1,32,000/-( previous year Rs.1,32,000/-).
 
 f.  Following premises have been taken on lease / purchased by the Bank
 from the various parties who are having business relations with Krishna
 Group of Companies in which Tayal family is interested :
 
 i.  Corporate Offce premises on lease at Mumbai at a monthly rent of
 Rs.15,42,250/- from M/s
 
 Solid Vision Pvt. Ltd. During the year 2009-10 amount paid is
 Rs.1,85,07,000/-( previous year Rs.1,85,07,000/-).
 
 ii.  Premises on lease at Vithalwadi, Thane for storage of old records
 at monthly rent of Rs.3,32,090/- from M/s Satellite Consultancy
 Services Pvt. Ltd. During the year 2009-10 amount paid is
 Rs.39,85,080/-( previous year Rs.39,85,080/-).
 
 iii. Premises of Regional Offce, Mumbai on lease (I & II portion
 admeasuring 3000 sq.ft. each) at a monthly rent including service
 charges Rs.15,00,000/- per month (at revised rent w.e.f. 08.01.2008 &
 16.09.2008 respectively) from M/s Delux Polymers Ltd. M/s Ambika Silk
 Mills Company Ltd.  has sub-leased the premises to Shri Sanjay Kumar
 Tayal and Dr. Praveen Kumar Tayal, admeasuring 3000 sq.ft. each which
 was further sub-leased to M/s Delux Polymers Pvt. Ltd. which is lessor
 of premises of Regional Offce, Mumbai.
 
 During the year total rent (including service charges) on both portions
 of premises of Regional Offce, Mumbai was paid
 Rs.1,80,00,000/-(previous year Rs. 1,67,66,743/-) Tayal family is
 neither having any directorship nor having shareholding in the
 above-mentioned companies.
 
 g.  Prior to Shri K.N.Bhandari became Director of the Bank, a term loan
 of Rs.50.00 crores was sanctioned on
 
 1st February 2005 for a period of 10 years to M/s Hindalco Industries
 Ltd. in which Shri K.N.Bhandari is also a Director. Shri K.N. Bhandari
 was appointed as Director w.e.f. 25th February 2006. The outstanding in
 the account as on 31.03.2010 is Rs.45.60 crores (previous year Rs 47.48
 crores) and the account is considered as standard.as on date.
 
 h.  Term loan I of Rs.10.00 crores and term loan II of Rs.20.00 crores
 were sanctioned on 17.11.2006
 
 and 28.09.2007 respectively to M/s Magma Fin Corp Ltd account at B/o CR
 Kolkata in which Shri K.N.Bhandari became Director on 22.10.2008 as per
 his disclosure. Term loan I of Rs.10 crores stands adjusted on
 27.03.2010 (previous year Rs.3.65 crores). The outstanding in term loan
 II is Rs.4.99 crores as on 31.03.2010 (previous year Rs.12.34 crores)
 and the account is considered as Standard as on date.
 
 i.  Education Loan of Rs.0.60 crores (B/o Lower Parel Mumbai) was
 sanctioned by Committee of Directors
 
 on 21.07.2009 to Shri Shubhashish Bhutiani and Shri Sanjay Bhutiani who
 are daughter’s son and son-in- law of Shri K.N.Bhandari Director on the
 Bank’s Board. The outstanding in the account as on 31.03.2010 is
 Rs.0.10 crores and the account is considered as Standard as on date.
 
 Note: Facilities (funded / non funded) to Directors / Firms / companies
 in which they have interest which are covered by 100% term deposit
 receipts of the Bank under Bank’s lien have not been reported as these
 facilities are exempted under Section 20(1) of the Banking Regulation
 Act,1949.
 
 (1) Issued Share capital pending allotment as indicated in Schedule 1
 and Bonus Shares relatable thereto have been fully considered in
 computation of issued equity shares in line with the approach of
 Accounting Standard 20 “Earnings Per Share”. Equity includes 47,349
 shares paid up but allotment kept in abeyance & have no impact on
 dilutive potential.
 
 9.  Contingent Liabilities:
 
 9.1 Contingent Liability of Rs.1260.70 crores (previous year Rs.1358.13
 crores) disclosed in Schedule 12 includes disputed tax liability of
 Rs2.05 crores (previous year Rs.2.05 crores).
 
 9.2 In accordance with Accounting Standard 29 on Provisions, Contingent
 Liabilities and Contingent Assets issued by the Central Government
 under the Companies (Accounting Standards) Rules 2006, the Bank has
 carried out fnancial assessment of the contingent liabilities and
 determination of provision for probable losses. The amount of losses
 estimated during the year were Rs.5.95 crores (previous year Rs.0.03
 crores) which have been charged to Proft & Loss Account.
 
 Disclosures in terms of accounting standard on provisions, contingent
 liabilities and contingent assets.
 
 (a) Movement of provisions for liabilities*
 
 10.  Income / Expenditure
 
 There are no material amounts of expenditure / income required to be
 disclosed as “Prior Period” items as per AS – 5 on “Net Proft or Loss
 for the period, Prior Period Items & Changes in Accounting Policies”
 read with RBI guidelines.
 
 11.  Changes in Accounting Policies:
 
 11.1 Hitherto, the Bank had adopted the policy of making 100% provision
 against the secured portion of those NPA’s which had remained in
 doubtful category for more than 2 years. With effect from 1st July
 ,2009 this provision has been made at 30% of secured portion of those
 advances, which have fallen into this category after 1st July, 2009 in
 line with RBI guidelines on provisioning requirements. Pursuant to this
 change, the proft for the year ended March 2010 is higher by Rs.0.91
 crores.
 
 11.2 Banking Operation (BO) is considered as the primary resource
 mobilizing unit and Treasury Operation compensates the former for funds
 lent by BO. Till 31.03.2009 in computing the segment results, interest
 expenses were allocated to the treasury and corporate / wholesale
 segments by applying the cost of funds to the Average Investments /
 Advances and the balance was allocated to the retail segment and,
 operating expenses on the basis of segment assets. During the present
 fnancial year all expenses have been apportioned in the ratio of total
 income of each segment due to which, the results for the retail segment
 are lower by Rs.213.32 crores and results for corporate/wholesale and
 treasury segment are higher by Rs.74.29 crores and Rs.139.03 crores
 respectively.
 
 12.1.  In the 3rd quarter results, there was a disclosure that pending
 validation of valuation, Rs.51.89 Crores as per an actuary had not been
 provided for. The validation revealed certain errors in the estimated
 liability as at 31.12.2009. Hence, valuations by two actuaries have
 been obtained as at 31.03.2010. The higher of the two valuations,
 arrived at as indicated in Note 12.2, has been adopted.
 
 12.2.  In view of the revision in base data and assumptions made in
 computing liability for employee benefts(as indicated in note no. 4),
 the liability has increased by Rs.149.58 crores over the amount that
 would have been computed if the earlier base data and assumptions had
 been continued. In view of the proposed merger/amalgamation (the exact
 impact of which cannot be presently ascertained) the earlier
 assumptions may not hold good but on a conservative basis provision has
 been made as per revised assumptions. This has resulted in the loss
 being overstated by Rs. 149.58 crores.
 
 Impact of wage revision on superannuation benefts has not been
 considered pending payment of revised salary and giving second option
 to employees opting for pension.
 
 12.3. In line with earlier practice, the sum of Rs.31.50 crores
 refected under the head Advance contribution to Pension Fund represents
 sum paid for purchase of annuity to be purchased in current period and
 is therefore, not refundable by the Pension Fund. Accordingly, the
 amount of Deferred Tax Asset is overstated to the extent of Rs. 10.46
 crores besides the above referred sum of Rs.31.50 crores.
 
 13. In exercise of its powers u/s 30(1B) of the Banking Regulation Act
 1949, the RBI appointed M/s Deloitte Haskins and Sells to conduct a
 special audit of the bank and submit their report by 31st March 2010.
 The special auditors were required to look at specifc areas including
 inter-alia certain large value advances and their compliance with
 provisioning requirements etc. An interim report submitted by the
 special auditors has not indicated any signifcant provisioning
 requirement and all actions considered appropriate and necessary,
 arising out of the suggestions made by them are being acted upon.
 Financial impact if any arising out of the fnal report which is awaited
 cannot be presently quantifed.
 
 B.  DISCLOSURE IN TERMS OF RESERVE BANK OF INDIA REQUIREMENTS
 
 14.  Investments :
 
 14.1 The book value of Investments held under the three categories,
 viz. Held to Maturity (HTM), Held For Trading (HFT) and Available for
 Sale (AFS) are as under :- 
                                    As at 31.3.10     As at 31.3.09
 
 Held to Maturity (excluding under 
 exempted category)                      87.31%          52.60%
 
 Held for Trading                         2.74%           0.01%
 
 Available for Sale                       9.94%          47.38%
 
 Exempted Category                        0.01%           0.01%
 
 14.2 Investments include application money in Mewar Aanchalik Gramin
 Bank, a Regional Rural Bank (RRB) amount to Rs.5.42 crores (previous
 year Rs.5.42 crores). Out of this, Rs.0.35 crores (previous year
 Rs.0.35 crores) is included in Investments under “Held to Maturity”
 category and balance of Rs.5.07 crores (previous year Rs.5.07 crores)
 pending allotment of shares is included under “Other Assets”. As per
 Reserve Bank of India (RBI) guidelines, no provision towards diminution
 in the value of Investment in RRB has been made in the accounts.
 
 14.3 The Bank transfers securities, in respect of which, principal
 amount is due for redemption to overdue Investments. In case where
 principal / interest is overdue for more than 90 days, Investments is
 treated as NPI and provision for depreciation has been made in line
 with prudential norms of RBI (refer note 14.21 below).
 
 14.4 The Bank in the past had contributed to a trust as senior
 contributor for purchase of benefcial interest in secured home loan
 receivables (mortgage backed receivables) originated by another bank.
 The above are continued to be redeemed and are included in Investments
 under “Available For Sale” category. The said amount is Rs 24.41 crores
 (previous year Rs.35.02 crores).
 
 14.5 As per RBI guidelines, an amount of Rs.9.03 crores (previous year
 Rs.25.14 crores) being proft on sale of securities classifed under
 “Held to maturity” category has been transferred to “Capital Reserves”.
 
 14.12 Interest Expended – Others includes interest on Subordinated Debt
 Rs.31.89 crores (previous year Rs.23.81 crores)
 
 14.26 Disclosure on risk exposures in Derivatives Products
 
 In compliance with RBI Circular DBOD.No.BP.BC.72/21.04.018/2004-05
 dated March 3, 2005 following disclosures are made :-
 
 14.26.3 Qualitative Disclosure
 
 The Bank has in place various guidelines related to Internal Control of
 foreign exchange business, which covers various risk limits for FX
 dealing room operations.
 
 The Bank offers the facility of foreign exchange transactions and
 booking of forward contracts to its merchant exporters, importers and
 other clients to cover/hedge their foreign exchange risk. All the
 forward contracts are covered for respective tenors, based on market
 lots and available tenor swaps.
 
 The Bank undertakes interbank foreign exchange Swaps for covering the
 merchant forward positions as also for fund management purpose. The
 Bank also undertakes Swaps to avail of the arbitrage opportunities
 between different markets.
 
 The Bank has prescribed Gap limits (IGL and AGL) to manage Gaps and
 various risk limits for forex operations, in terms of RBI guidelines,
 which are monitored regularly. Crossovers, if any, are approved by
 competent authorities, as approved by the Board of Directors.
 
 All outstanding foreign exchange contracts are revalued at monthly
 intervals at FEDAI rates, in terms of FEDAI guidelines and resultant
 proft or loss is taken to proft and loss account.
 
 The Bank has not undertaken any other foreign exchange derivative
 product (Options, Interest Rate Swaps, Futures etc.) except foreign
 exchange forward contracts during the current fnancial year, hence not
 incurred any loss related to derivative transactions.
 
 15 Details of Credit Exposures in case of single borrower or group
 borrower limit where the Bank had exceeded
 
 the Prudential Exposure during the year.
 
 16 The Bank has not made any fnancing for margin trading during the
 year and also not securitized any assets.
 
 17 As the Bank’s net funded exposure for the year ended 31st March 2010
 in respect of the foreign exchange transactions with each country is
 below 1% of the total assets of the Bank, no provision and disclosure
 are required as per RBI circular DBOD.BP.BC. 96/21.04.103/2003-04 dated
 17th June 2004.
 
 18.  Taxation
 
 18.1 Provision for direct and indirect taxes has been made after due
 consideration of decisions of the appellate authorities, advice of the
 counsel and legal opinions.
 
 18.2 Amount of provision made for Income Tax during the year
 
 20. During the year 2009-10 the Reserve Bank of India has imposed a
 penalty of Rs. 0.25 crores in terms of Section 47 A (1) (b) of the
 Banking Regulation Act, 1949 for (i) violation of the Reserve Bank of
 India’s directions issued under Section 35A of the Banking Regulation
 Act, 1949 in the area of acquisition of Immovable properties, (ii)
 Destruction of records in the Bank’s IT systems relating to share
 transfer, etc. and resultant violation of RBI’s extant guidelines,
 (iii) Non adherence to know your customer/anti money laundering
 guidelines in the opening and conduct of certain accounts, (iv)
 irregularities in the conduct of accounts of a corporate group and (v)
 failure to provide certain share applications forms sought by the
 Reserve Bank of India and misrepresenting that such documents were not
 available.
 
 22.  Advances
 
 Advances given to units which have become sick, including those under
 nursing/ rehabilitation/ restructuring program, and other advances
 classifed as doubtful or loss, have been considered secured/
 recoverable to the extent of the estimated/ realizable value of
 security carrying frst/ second charge based on assessment of value of
 properties/assets mortgaged and other data available with the Bank.
 
 23.  Additional Disclosures
 
 23.1 The Bank has entered into an agreement with M/s Aviva Life
 Insurance Co. Ltd. on 5th March 2009 for the purpose of soliciting,
 promoting, marketing and selling the insurance products being sold by
 the company. The Bank is in the process of acquiring the requisite
 License to act as Corporate Agent of the insurance company. Pending
 necessary clearances from the Regulators, Aviva has agreed to
 compensate the Bank as per the terms of the understanding reached in
 this regard. In accordance with the same during the fnancial year, the
 Bank has received Rs 9.26 crores from the said insurance company for
 services rendered. This amount has been recognised as income for the
 year 2009-10 and included in Other Income (previous year Rs. 2.53
 crores).
 
 23.2 Owners of rented property housing the Corporate Offce have sought
 for rent revision in respect of property occupied by the Bank at Lower
 Parel, Mumbai.. This , if acceded to ,would result in a liability of
 Rs.15.77 crores approx.. Since this is not acceptable to the Bank, the
 said sum is not refected in the fnancial statements.
 
 24.  There is no draw down from reserves during the year 2009-10.
 
 26.  An amount of Rs.49.45 crores has been provided towards estimated
 liability in respect of wage revision up to 31.03.2010.
 
 27.  The total amount of advances for which intangible securities such
 as charge over the rights, licecses, authority, etc.  has been taken is
 Rs.270.42 crores as on 31.03.2010. The estimated value of such
 collaterals is not ascertainable.
 
 28.  Balancing of Books and Reconciliation :
 
 Reconciliation of transactions in interbranch accounts is completed
 upto 31.3.2010 and adjustment of outstanding entries is in progress.
 Sundry and Suspense Accounts contain entries pending adjustment to
 appropriate head of accounts.
 
 29.  All the Accounting Standards referred to in Section 211(3C) of the
 Companies Act, 1956 to the extent applicable to the Bank and mandatory
 in nature have been complied with.
 
 30.  The Board of Directors in it’s meeting held on 23.05.2010 have
 approved Scheme of Amalgamation of The Bank of Rajasthan Limited with
 ICICI Bank Limited. The share exchange ratio has been approved at 25
 shares of ICICI Bank Limited for 118 shares of The Bank of Rajasthan
 Limited which works out to a swap ratio of 1:4.72. Extraordinary
 General meeting of Shareholders is proposed to be convened on 21st June
 2010 to approve the amalgamation scheme in terms of Section 44A of
 Banking Regulation Act, 1949 and thereafter submission to Reserve Bank
 of India for necessary approval. Since the business of banking is
 intended to be continued , though there is a possibility of
 amalgamation of the Bank, the accounts are prepared on assumption of
 going concern.
 
 31.  Corresponding fgures of the previous year have been
 regrouped/rearranged to the extent necessary/practicable.