Bank of Rajasthan
BSE: 500019 | NSE: BANKRAJAS | ISIN: INE320A01014 | Banks - Private Sector
- Directors Report
- Chairman's Speech
- Auditors Report
- Notes To Accounts
- Accounting Policy
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| Notes to Accounts | Year End : Mar '09 |
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 I* April 2007 have been revalued on 31 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 31 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 fixed 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 Profit & 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 Profit & Loss account. 1.4 Registration formalities are pending in respect of properties valuing Rs.4.97 crores (previous year Rs.4.97 crores) 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.1.86 crores (previous year Rs.0.28 crores) is capitalized to computers subjected to depreciation and other software of non-integral nature amounting to Rs.0.14 crores (previous year Rs.0.04 crores) is charged off to Profit & Loss A/c. 3. Employee benefits : In pursuance of AS 15 on Employee Benefits, issued by the Central Government under the Companies (Accounting Standards) Rules 2006, the following disclosures have been made: 4. Contingent Liabilities : 4.1 Contingent Liability of Rs.1358.13 crores (previous year Rs. 1335.86 crores) disclosed in Schedule 12 includes disputed tax liability of Rs.2.05 crores (previous year Rs.0.09 crores). 4.2 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 financial assessment of the contingent liabilities and determination of provision for probable losses. The amount of losses estimated were Rs.0.03 crores (previous year Rs.0.16 crores) which have been charged to Profit & Loss Account. Disclosures in terms of accounting standard on provisions, contingent liabilities and contingent assets. (a) Movement of provisions for liabilities* (Rs. in crores) Particulars Legal cases/ contingencies 31.3.2009 31.3.2008 Balance at the beginning of the year 1.20 1.04 Provided during the year 0.11 0.16 Amounts used during the year Nil Nil Reversed during the year 0.08 Nil Balance at the end of the year 1.23 1.20 Timing of outflow/ uncertainties Out flow on settlement/ crystalisation *excluding provisions for others (b) Refer Schedule - 12 on Contingent Liabilities Such liabilities at S.No. (I), (II), (III), (IV) and (V) are dependent upon, the outcome of court / arbitration / out of court settlement, disposal of appeals, the amount being called up, the terms of contractual obligations, development and raising of demand by concerned parties, respectively. No reimbursement is expected in such cases. Income / Expenditure The Bank recognized interest on matured term deposits at the time of renewal / withdrawal of the same. In pursuance of RBI circular DBOD.No.Leg.BC.34/09.07. 005/2008-09, the Bank has provided interest on outstanding matured term deposits as on 31 March 2009 at the savings bank rate of 3.50% for the year. As a result of this change, the profit for the year is lower by Rs.0.11 crores. There are no material amounts of expenditure / income required to be disclosed as Prior Period items as per AS - 5 on Net Profit or Loss for the period, Prior Period Items & Changes in Accounting Policies read with RBI guidelines. B. DISCLOSURE IN TERMS OF RESERVE BANK OF INDIA REQUIREMENTS 5. Equity Capital In terms of Section 12 of the Banking Regulation Act, the Reserve Bank of India has directed the Bank to increase its paid-up equity capital or reduce its authorized capital. Application for extension of time upto June 2008 for compliance with the above had been made to the RBI. Pursuant to the resolution passed by the Extraordinary General meeting of the members on 30,h May 2008, the Authorised Capital of the Bank has been reduced to Rs.265 crores. 6.1 Investments include application money in Mewar Aanchalik Gramin Bank, a Regional Rural Bank (RRB) amount to Rs.5.42 crores (previous year Rs.4.73 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.4.38 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. 6.2 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 NPA and provision for depreciation has been made in line with prudential norms of RBI (refer note 12.21 below). 6.3 The Bank in the past had contributed to a trust as senior contributor for purchase of beneficial 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.35.02 crores (previous year Rs.45.65 crores). 6.4 As per RBI guidelines, an amount of Rs.25.14 crores (previous year Rs.0.08 crores) being profit on sale of securities classified under Held to maturity category has been transferred to Capital Reserves. 7. Advances Advances given to units which have become sick, including those under nursing/ rehabilitation/ restructuring program, and other advances classified as doubtful or loss, have been considered secured/ recoverable to the extent of the estimated/ realizable value of security carrying first/ second charge based on assessment of value of properties/assets mortgaged and other data available with the Bank. 8. Additional Disclosures 8.1 Other income includes fees for services amounting to Rs.3.37 crores rendered to M/s Aviva Life Insurance Co. Ltd. which was apportioned and considered as not accrued during the year 2008-09 though the same was received during the year 2008-09. 8.2 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 financial year, the Bank has received Rs.2.53 crores from the said insurance company for services rendered. This amount has been recognised as income for the year 2008-09 and included in Other Income. 8.3 During the year, the Bank has issued 26899574 equity shares of Rs.10/- each as fully paid up bonus shares by way of capitalization of share premium and general reserves. Due to this, paid up capital of the Bank has increased from Rs.134.46 crores to Rs.161.35 crores as on 31 March 2009 and Reserves & Surplus has decreased by equivalent amount. The issue of 7892 shares out of the present bonus issue (being the shares relatable to 39,457 shares earlier kept in abeyance) has also been kept in abeyance. 9. Balancing of Books and Reconciliation : Reconciliation of transactions in interbranch accounts is completed upto 31.3.2009 and adjustment of outstanding entries is in progress. Sundry and Suspense Accounts contain entries pending adjustment to appropriate head of accounts. 10. All the Accounting Standards referred to in Section 211(3C) of the Companies Act, 1956 to the extent applicable to the Bank and mandatorv in nature have been comnlied with. |
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| Source : Religare Technova | |
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