Vijaya Bank

1.  Reconciliation of entries outstanding as on 31.03.2009 in the
 inter-branch and other accounts has been drawn.
 
 Matching of entries outstanding in inter-branch and inter-bank accounts
 including balances with foreign banks and Reserve Bank of India, drafts
 accounts, suspense accounts, branch adjustment accounts, clearing
 transactions, funds transfers, telegraphic transfers, balances
 pertaining to dividends / interest / refund orders paid / payable
 accounts, advances paid for acquisition of assets, etc. is complete
 upto 31.12.2008 and is under progress for the remaining period. In the
 opinion of the Bank, consequential effect of the above on the revenue /
 assets / liabilities is not material.
 
 2.  Premises:
 
 (a) In respect of certain premises acquired by the Bank having written
 down value of Rs. 11.65 crore, (previous year Rs. 12.80 crore)
 documentation / registration are yet to be completed pending legal or
 other formalities.
 
 (b) No property of the Bank has been revalued during the financial year
 2008-09 (during the previous year, Banks properties with original cost
 of Rs.90.68 crores were revalued at Rs.434.13 crores, and the resultant
 appreciation was credited to the Revaluation Reserve Account).
 
 3.  In the case of un-audited branches, the returns / classification of
 advances as reported by the concerned branches have been adopted.
 
 4.  Claims pending and to be preferred with ECGCI Limited amounting to
 Rs.5.36 crores (previous year Rs.9.94 crore) have been considered as
 realisable for the purpose of computing provisions.
 
 5.  No provision has been considered necessary by the Management in
 respect of disputed tax liabilities in view of the judgements in favour
 of the Bank. Further, certain deductions have been considered while
 working out tax provisions in respect of some claims under Income Tax
 Act based on the legal opinions obtained.
 
 6.  In respect of Fringe Benefit Tax (FBT), the Bank has relied upon
 the date of payment to Pension Fund for incidence of the tax, based on
 legal opinion.
 
 7.  Compliance with Accounting Standards:
 
 i) There were no material prior period income/ expenditure required to
 be disclosed as per AS -5.
 
 ii) In terms of accounting policy No.9 of the bank, some items are
 recognised on cash basis. However, the management is of the view that
 since the amount involved is not material, it does not require any
 disclosure under AS-9. The policy of accounting for commission on
 Non-fund based business viz., Bank Guarantee and Letter of Credit has
 been changed during the year effective 1st April 2008 from accrual
 basis to cash basis. Had the income been accounted for on accrual
 basis, the income for the year would have been lower by Rs.42.07 Crore
 
 iii) The Bank is revaluing foreign currency transactions consistently
 at the weekly average rate of the last week of the preceding month,
 prescribed by FEDAI, instead of the rate at the date of the transaction
 as per AS 11. The management is of the view that there is no material
 impact on the accounts for the year.
 
 x) As per AS -26 - Intangible Assets issued by ICAI, software (other
 than operating software) have been considered as intangible assets. The
 bank has amortised the cost of software put to use @ 100% in the year
 of acquisition. During the year Rs.9.67 Crore (previous year Rs.4.09
 crore) has been charged to Profit & Loss account.
 
 xi) In the opinion of the Management, there is no material impairment
 of any of the Fixed Assets of the Bank as per Accounting Standard 28 -
 Impairment of Assets.
 
 xii) The Bank has provided for Rs.0.45 crore towards provision for
 Contingent Liabilities.
 
 8.  Reserve Bank of India has not imposed any penalty during the year.
 
 9.  Out of the reserves created on account of transfer of entries
 originated in Inter Branch Account up to 31.03.1999, as approved by
 Reserve Bank of India in 2006-07, Bank has repaid Rs.0.01 crore during
 the current year.
 
 10.  Pending finalization of industry level settlement and wage
 revision, a sum of Rs.60 Crore has been provided on an estimated basis
 during the year towards arrears and included under Employees cost.
 
 11.  Agricultural Debt Waiver and Debt Relief Scheme 2008
 
 i) In terms of Agricultural Debt Waiver and Debt Relief Scheme 2008,
 framed by the Government of India and the guidelines, clarifications
 subsequently issued by RBI, the Bank has received Rs.62.72 crore during
 the year on account of Debt waived in respect of small and marginal
 farmers against the eligible claim of Rs. 153,08 crore leaving a
 balance of Rs.90.36 crore as receivable from Government of India as on
 31.03.09, and the same is included In Advances.
 
 ii) As regards Debt Relief to Other Farmers, a sum of Rs.60.41 crore
 has been identified to be eligible for Debt Relief, against which
 Rs.21.70 crore has been availed by the eligible borrowers upto
 31.03.2009 Advances.
 
 iii) Interest / Charges debited in accordance with the above scheme
 from 1st March 2008 to 30th June 2008 amounting to Rs.5.89 crore has
 been written off/ reversed. The amount debited to Profit & Loss account
 and the Claims from the Government of India under the above said scheme
 are subject to verification by the Statutory Central Auditors.
 
 iv) Pending finality of the eligible claim due under the scheme,
 provision for interest receivable from Government of India has not been
 considered.
 
 12.  A sum of Rs.26.22 Crore has been provided by way of Interest on
 Matured Term Deposits from the date of maturity upto 31.03.2009, and
 Inoperative Savings Deposits, pursuant to revised guidelines issued by
 the Reserve Bank of India.
 
 13.  Previous years figures have been re-grouped / re-classified /
 re-cast wherever necessary to conform to current years classification.