1) In respect of certain premises costing Rs. 10.91 crores (previous
 year Rs. 11.71 crores), Registration / Execution of documents, in
 favour of the Bank are yet to be completed.  However, adequate steps
 have been initiated to complete the formalities. Title deeds in respect
 of 3 properties costing Rs.  2.10 crores (previous year Rs2.10 crore)
 are yet to be collected from Registration office.
 
 2) In the absence of information as to the realizable value of
 securities in certain advances, the value as per records has been
 considered.
 
 3) Interest accrued but not due on term deposits and saving has been
 included under the relevant deposits.
 
 4) PROPOSED DIVIDEND
 
 Proposed Dividend @79% on the paid up capital has been provided for.
 This is subject to approval from Regulatory Authorities in pursuance of
 section 15 & 17 of Banking Regualation Act 1949.
 
 5) PROVISION FOR TAXATION
 
 The provision for current income tax for the year is made on the basis
 of Minimum Alternate Tax (MAT) in accordance with section 115JB of the
 Income tax Act, 1961. Considering the future profitability and taxable
 position in subsequent years, the Bank has recognized MAT credit
 entitlement of Rs. 118 crores (Previous Year: Rs. Nil) as an asset by
 crediting Profit & Loss Account and disclosed under ''Other Assets''. The
 provision for current income tax for the year ended March 31, 2012
 Rs.389.67 crores (previous year Rs. 550.94 crores) has been made
 considering applicable enactments, judicial pronouncements and legal
 opinions.
 
 Pending final outcome of the appeals filed by the bank/income tax
 authorities, disputed tax liabilities (including interest), for various
 assessment years, amounting to Rs. 389.59 crores (previous year Rs.
 203.14 crores) are shown in Schedule 12 under Contingent
 Liabilities. The bank believes that these demands are largely
 unsustainable and will eventually be set aside. Accordingly, no
 provision has been made against the said disputed liabilities and
 payments/adjustments to the extent made against these demands have been
 included in Schedule 11 under Other Assets as Income Tax
 Recoverable.
 
 Note: -
 
 (1) Amounts reported under columns 4, 5, 6 and 7 are not mutually
 exclusive.
 
 (2) * Out of total investment of Rs. 2601.37 crore in Unrated
 securities, Rs.2514.51 crore is in exempted investment consisting of
 equity shares Rs. 548.51 crores, mutual fund of Rs. 37.00 crores, Rs.
 1504.60 crore in certificate of Deposit, venture fund of Rs. 206.78
 crore, security receipt of Rs. 33.62 crore & JV-INS Rs.184.00 crore,
 hence unrated investment is Rs. 86.86 crore (Rs. 71.86 crore preference
 share & Rs. 15.00 crore in Bonds & debenture)
 
 (3)**Total unlisted includes CD Rs. 1504.06 crore, CP Rs.72.92 crore,
 exempted investment (HFCL Bonds) Rs. 67.03 crore and JV Rs. 184 crore
 and RIDF of Rs. 7964.05 crore.
 
 (4)@ Includes RIDF Investment (Rs. 7964.05 crore in current year and
 Rs. 7470.64 crore in previous year respectively)
 
 d) In respect of investments under Held to Maturity category, the
 premium amount amortized during the year is Rs. 67.66 crores (previous
 year Rs. 92.97 crores) and the same has been accounted for in Schedule
 No.13 under the head ''Interest Earned'' as deduction from ''Income on
 Investments''.
 
 e) Provision for Depreciation on Investments:
 
 Provision for depreciation on investments under ''Available for Sale''
 and ''Held for Trading'' categories as on March 31, 2012, is Rs. 358.89
 crore (previous year Rs. 78.28 crore).
 
 f) The Bank has not transferred any Securities (previous year Rs.
 1720.17 crores), from ''Available for Sale'' category to ''Held to
 Maturity'' category and transferred Rs. 2263.84 crores from ''Held to
 Maturity'' category to'' Available for Sale'' category (previous year Rs.
 962.34 crores) during the year which is in accordance with the RBI
 guidelines. The Mark to Market depreciation on shifting of above
 mentioned securities was Rs. 4.53 crores (previous year Rs. 64.05
 crores), and the same has been debited to Profit and Loss Account. Bank
 also transferred securities amounting to Rs. 0.85 crores (previous year
 Rs. 0.95 crores) from ''Held for Trading'' to ''Available for Sale''
 category by booking depreciation of Rs. 0.20 crores (previous year Rs.
 0.16 crores).
 
 g) During the financial year 2011-12 Bank has invested Rs.  23.00
 crores (previous year Rs. 46.00 crores) towards capital contribution in
 joint venture Company for Life Insurance Business with Canara Bank and
 HSBC under the name and style of Canara HSBC Oriental Bank of Commerce
 Life Insurance Company Limited. The total capital outstanding as on
 31.03.2012 is Rs. 184.00 crores (previous year Rs.  161.00 crores),
 which amounts to 23% capital contribution by the bank.
 
 The said investment made by the Bank has been classified under ''Held to
 Maturity'' category under the head investment in joint ventures, as the
 intention is to hold as joint venture investment although the holding
 is less than 25% as required under RBI norms. In the opinion of the
 management the impact in the value of the said investment on account of
 initial losses is not permanent in nature and hence no provision is
 considered necessary.
 
 6) DERIVATIVES
 
 The Bank has undertaken Derivative Transactions viz.  Interest Rate
 Future, Currency Futures, Currency options and Interest Rate Swap (OIS)
 during the year. There is no outstanding in respect of Interest Rate
 Future and Interest Rate Swap (OIS) as on 31-3-2012. However, there is
 an outstanding position in currency future which is covered in
 interbank market as on 31-3-2012. Also, transactions under Foreign
 Exchange Forward Contracts have been undertaken on behalf of various
 clients and outstanding as on date is Rs.  38,138.88 crores (previous
 year Rs. 31,603.66 crores).
 
 c) Qualitative disclosure:
 
 Operations in the Treasury Department are segregated into three
 functional areas, i.e. Front Office, Mid Office and Back Office
 equipped with necessary infrastructure and trained Officers, whose
 responsibilities are well defined.
 
 The Treasury Policy of the Bank clearly lays down the types of
 financial derivative instruments, scope of usage, approval process.
 Derivative transactions contain interest rate risk, counterparty risk,
 market risk, currency risk, settlement risk, open position risk and
 operational risk. Treasury Policy clearly specify the internal control
 limits like open position limits, deal size limits, stop-loss limits,
 deal initiating authority for trading/hedging in approved instruments
 to contain the risk and maximize return on the derivative transactions.
 
 The mid office monitors the transactions in the trading books and also
 measures the financial risks for the transactions in the trading book
 on a daily basis by way of calculating Mark to market (MTM) of
 positions. Daily MTM position is reported to the Investment Committee.
 
 The Bank also has a policy for hedging its balance sheet exposures. The
 treasury policy of the Bank spells out the approval process for hedging
 the exposures. The hedged transactions are monitored on a regular
 basis.
 
 The hedging/trading transactions are recorded separately. The hedge
 transactions are accounted for on accrual basis. All trading contracts
 are market to market and resultant gross loss is accounted for ignoring
 the gain on a prudence basis.
 
 The Bank is Trading & Clearing Member of three exchanges viz.  National
 Stock Exchange (NSE), MCX-SX Stock Exchange (MCX-SX), United Stock
 Exchange (USE) for currency futures /interest rate futures. The Bank
 undertakes proprietary trading in currency futures, interest rate
 futures & interest rate swaps. The Bank has set up the necessary
 infrastructure for Front, Mid and Back Office operations, daily mark to
 market (MTM) and margin obligations are settled with the exchanges as
 per guidelines issued by the regulators.
 
 Treasury Policy has been drawn up in accordance with RBI guidelines.
 
 The above figures include the effect of floating provisions of Rs.
 72.00 crore made by the bank towards NPA portfolio of the Bank as on
 31.03.2009 and the same is retained as on 31.03.2012.
 
 Net provision is arrived at after adjusting ECGC/DICGC claims setteled.
 
 The Provisioning Coverage Ratio (PCR) for the Bank as on 31.03.2012 is
 61.52% (previous year 76.79%), which is calculated taking into account
 the total technical write offs .
 
 Provision includes provisions made above the prescribed rates where
 ever necessary.
 
 The cumulative provision towards Standard Assets held by the Bank as at
 the year end amounting to Rs.530.80 crores (previous year Rs. 372.80
 croresj is included under Other Liabilities And Provisions in Schedule
 5 to the Balance Sheet.
 
 f) Unsecured Advances: The advances amounting to Rs.1667.66 Crores as
 on 31.03.2012 (previous year Rs.1976.66 crores) are secured by way of
 charge of intangible securities such as rights, licenses, authority
 etc. In the views of the management, the estimated values of such
 intangible securities charged to the bank as collateral are at least
 equal to the outstanding amount.
 
 h) Off-Balance Sheet SPVs sponsored (domestic & overseas) - Nil
 
 i) In terms of RBI circular DBOD. BP. BC.80/21.04.018/ 2010- 11 dated
 09.02.2011, the Bank has opted to amortise pension liability with
 respect to second pension optees for a period of 5 years commencing
 from FY 2010-11. Accordingly, out of the balance unamortized amount of
 Rs 683.60 crore as on 01.04.2011, the Bank has amortised Rs 170.90
 crore being amount for the year ended 31.03.2012.
 
 j) RIDF deposits placed by the Bank with NABARD/SIDBI/NHB which were
 hitherto being grouped under  Deposits with Banks (schedule 7- Balance
 with banks and Money at call & Short Notice at item (i)(b)) has now
 been regrouped under Schedule 8- Investments in the Balance Sheet at
 item I (vi)- Others amounting to Rs. 7964.05 crore (Previous Year Rs.
 7470.64 crore) in accordance with extant RBI guidelines.  Accordingly,
 income on said deposits which was hitherto being grouped under Schedule
 13 Interest Earned at item 13(iii)- Interest on Balance with RBI &
 Inter Banks funds, has now been regrouped under Schedule 13 Interest
 Earned at item 13(ii)-  Income on Investment, amounting Rs.  378.46
 crores (Previous Year Rs. 322.93 crores).
 
 7) Disclosure of Penalties imposed by RBI:
 
 During the year a sum of Rs.63,359/- has been imposed on the Bank as
 penalty by RBI.
 
 8) COMPLIANCE WITH ACCOUNTING STANDARDS (AS) ISSUED BY THE INSTITUTE
 OF CHARTERED ACCOUNTANTS OF INDIA.
 
 a) Accounting Standard AS-5 - Net Profit or Loss for the Period, Prior
 Period Items and Changes in Accounting Policies:
 
 Prior period expenses included in Other Expenditure under
 schedule 16 is Rs.2.47 crore (previous year 7.14 Crores). Prior period
 income included in Other Income under schedule 14 is Rs.0.49
 crore (previous year Rs.3.30 Crores).
 
 b) Accounting Standard AS-9 - Revenue Recognition:
 
 As per Accounting Policy No. 1(b), certain items of income are
 recognized on cash basis on account of statutory requirements or
 materiality.
 
 c) Accounting Standard AS-15 - Employee Benefits:
 
 The Bank is following AS-15 (revised 2005) ''Employee Benefits''. The
 defined employee benefit schemes are as under:-
 
 I.  Provident Fund
 
 The Bank pays fixed contribution to Provident Fund at predetermined
 rates to a separate Trust, which invests the funds in permitted
 securities. The contribution to the fund for the period is recognized
 as expense and is charged to the profit & loss account. The obligation
 of the Bank is limited to such fixed contribution.
 
 II.  Gratuity
 
 The Bank has a defined benefit gratuity plans for Officers who have
 joined / become Officer before 01/01/1983, Other Officers and Workman.
 Every Officer / workman who have rendered continuous services of five
 years or more is eligible for Gratuity, subject to a maximum of 20
 months on superannuation, resignation, termination, disablement or on
 death. The scheme is funded by the bank and is managed by a separate
 Trust. The liability for the same is recognized on the basis of
 actuarial valuation.
 
 III. Pension.
 
 The Bank has a defined benefit pension Plan. The plan applies to
 existing employees of the bank as on 29/09/1995 who have opted for the
 pension scheme and to all employees joining, thereafter. The scheme is
 managed by a separate Trust and the liability for the same is
 recognized on the basis of actuarial valuation.
 
 IV.  Other Defined Retirement Benefits (ODRB)
 
 Other Defined Retirement Benefits (ODRB) include settlement at home
 town for employees and dependents and post retirement medical benefit
 for CMD & ED. These are unfunded and are recognized on the basis of
 actuarial valuation.
 
 The summarized position of various defined benefits recognized in the
 profit and loss account and balance sheet along with the funded status
 are as under:
 
 NOTE:
 
 The estimates of future salary increases considered in actuarial
 valuation, takes into account of inflation, seniority, promotion and
 other relevant factors, such as supply and demand in the employment
 market.
 
 During the year provision has been made for LFC at Rs.1.43 crore
 (previous year Rs. 1.17 Crore) and Staff settlement expenses at Rs.
 0.13 crore (previous year NIL), which are as per Actuarial Certificate.
 However, outstanding for LFC is at Rs.22.73 crore (previous year Rs.
 20.96 Crore) and Staff settlement expenses at Rs.2.44 crore (previous
 year Rs. 1.77 crore)
 
 Plan Assets of the Pension & Gratuity fund include amounts of Rs.
 591.24 crore and Rs.126.63 crore respectively invested by the trust in
 the Bank''s own Bonds/Deposits.
 
 d) PENSION
 
 During the Financial Year 2010-11, the Bank has reopened the pension
 option for its employees who had not opted for the pension scheme (II
 Pension option). As a result of exercise of which the bank has incurred
 a liability of Rs. 854.50 Crores in respect of the existing employees.
 
 The Reserve Bank of India has issued a circular no.
 DBOD.BP.BC.80/21.04.018/2010-11 on Re-opening of Pension Option to
 Employees of Public Sector Banks and Enhancement in Gratuity Limits -
 Prudential Regulatory Treatment, dated 9th February 2011. In accordance
 with the provisions of the said Circular, the Bank may amortise the
 amount of pension over a period of five years for second pension optees
 who are existing employees of the Bank. Accordingly, the Bank has
 charged the following to the profit and loss account with respect to II
 pension liability of the existing employees:
 
 e) Accounting Standard AS-17 - Segment Reporting:
 
 i) The Business Segments, which is the Primary Segment include:
 
 - Treasury Operations
 
 - Corporate / Wholesale Banking
 
 - Retail banking
 
 - Other banking business operations
 
 ii) The Geographical segments are recognized as the Secondary Segment.
 As the Bank is not carrying on any foreign operations, the only
 reportable geographical segment is of Domestic operations.
 
 - Treasury Operations: Treasury operations consist of dealing in
 securities and Money Market Operations
 
 - Corporate / Wholesale Banking: Includes all advances to trusts,
 partnership firms, companies and statutory bodies which are not
 included under Retail Banking
 
 - Retail Banking: The exposure up to Rs. 5.00 Crores to individual ,
 HUF, Partnership firm ,Trust, Private Ltd.  Companies, public ltd.
 Companies , Co-operative societies etc. or to a small business is
 covered under retail banking. Small business is one where average of
 last three years'' annual turnover (Actual for existing & projected for
 new entities) is less than Rs.50 crores.
 
 - Other banking business operations: Includes all other Banking
 operations not covered under Treasury, Wholesale Banking and Retail
 banking Segments.  Other banking business is the residual category.
 
 iii) The segment revenue from treasury operations is shown after
 interest on average inter-segment funds used in Treasury Operations.
 The interest has been charged at the rate of Cost of Funds i.e.
 percentage of total interest expended to average working funds for the
 year.
 
 g) Accounting Standard AS-19 - Leases:
 
 The Bank has taken various premises under operating lease with varying
 lease periods.
 
 There are no potential equity shares (convertible bonds) outstanding
 and as such the Diluted Earning per Share is same as Basic Earning per
 share.
 
 i) Accounting Standard 22 -Accounting for Taxes on Income:
 
 The bank has complied with the requirements of AS 22 on Accounting
 for Taxes on Income issued by ICAI and accordingly deferred tax
 assets and liabilities are recognized. The net balance of deferred tax
 asset as on 31.03.2012 amounting to Rs 34.00 crores (Previous year
 Deferred tax asset Rs. 41.00 crores) consists of following:
 
 j) Accounting Standard - 28 Impairment of Assets:
 
 The bank''s assets substantially comprise of financial assets, which are
 not covered by AS-28 ''Impairment of Assets''. In the opinion of bank''s
 management there is no impairment in the value of its non financial
 assets in terms of said Accounting Standard.
 
 k) Accounting Standard - 29 on Provisions, Contingent Liabilities and
 Contingent Assets:
 
 Contingent Liabilities as stated in Schedule 12 [clause (i) and (vi)
 ]to the accounts are dependent on the outcome of court cases / disposal
 of appeals filed before various authorities / out of court settlement
 and other development if any. No reimbursement is expected in respect
 of items Nos. (i) and (vi) of said schedule.
 
 9) Fees/ Remuneration received in respect of bancassurance business
 undertaken by the Bank is Rs.18.14 Crores.  (previous year Rs.36.99
 Crore)
 
 10) Amalgamation of erstwhile Global Trust Bank Ltd. with Oriental Bank
 of Commerce:
 
 The erstwhile Global Trust Bank Ltd. (eGTB) was amalgamated with the
 Bank as per the scheme of amalgamation notified by the Government of
 India, Ministry of Finance, Dept. of Economic Affairs (Banking
 Division) the Scheme. As per the Scheme, the business,
 properties, assets and liabilities of eGTB stand transferred to the
 Bank with effect from August 14, 2004, the prescribed date.
 
 The Bank has incorporated gross Not Readily Realisable Advances
 of Rs. 1,285.26 crores, a provision of Rs. 821.16 crores there against
 and Not Readily Realisable Assets comprising of Income-tax paid
 amounting to Rs 41.21 crores against disputed demands, in the books of
 the Bank along with assets and liabilities of eGTB as valued and
 determined in terms of the Scheme.
 
 Not Readily Realizable Assets as on 31.03.12 is Rs 10.11 crores
 (Advances Rs 1.03 crores, other Assets Rs 9.08 crores), previous year
 figures Rs 16.69 Crores (Advances Rs 7.61 crores, other Assets Rs 9.08
 crores). The outstanding NRRAs are fully provided for by the Bank. Net
 Deficit under the scheme of amalgamation as on 31.03.12 is Rs 829.59
 crores previous year figures Rs 858.70 Crores The Bank has decided to
 maintain memorandum records for ascertaining the ultimate realization
 against the Not Readily Realizable Assets taken over. In the event of
 the ultimate realization from the Not Readily Realizable Assets, over
 and above the value at which they are taken over, exceeding the Excess
 of liabilities over assets taken over, the surplus after adjustment of
 expenses, etc. will be distributed to the erstwhile shareholders of
 eGTB after a period of twelve years or earlier as prescribed under the
 scheme.
 
 11) Previous year''s figures have been re-grouped/re- arranged/recast
 wherever considered necessary.