BCC_BR_107_127

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Corporate Accounts & Taxation Department, 2nd Floor, Baroda Corporate Centre, BKC

Bandra (E), MUMBAI 400 051 Tel : 022 – 66985288, 66985280, Fax (022) 26526890

email id : [email protected]

BCC: BR: 107/127 Date: 17.03.2015

ISSUED BY CORPORATE ACCOUNTS & TAXATION

DEPARTMENT,

BARODA CORPORATE CENTRE, BANDRA (E), MUMBAI

MASTER CIRCULAR

ON CLOSING ACTIVITIES

31st March 2015

TO

ALL THE BRANCHES / OFFICES IN

INDIA AND ABROAD

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Corporate Accounts & Taxation Department, 2nd Floor, Baroda Corporate Centre, BKC



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INDEX Master circular on Closing Activities 31st March 2015.

Sr. no. Particulars Page no.

1 Preliminary 3

2 Closing Returns 4-12

3 Important accounting/ closing guidelines 12-31

4 Compliance to auditor’s observations 31-32

5 Certificates 32-34

6 Taxation related guidelines 35-37

7 Statutory Branch Audit 37-38

8 Mailing instructions / Time schedule 38-40

Annexures Particulars Annex.no

1 Check List before closing of books I

2 Variance Analysis sheet II

3 New GL/ PL codes given during the year III

4 Guide lines regarding ASCROM system IV

5 Guide lines for branches under Audit V

6 Reporting of Inter Branch Forex Transactions Note-4 A VI

7 Significant Accounting Policies VII

8 Time Schedule for Audit VIII

9 List of Items for which branches are not required to make provision. IX

10 Guidelines regarding ALM Statement X

11 Changes in current year as compared to previous year closing. XI

12 Guidelines for calculation of sacrifice on restructured accounts 12(a) Illustration for calculation of interest sacrifice in restructured accounts

XII

13 Specific Guidelines regarding Finacle XIII

14 Processes Automated XIV

15 Guidelines on Unhedged Foreign Currency Exposure. XV

Certificates

Certi no.

1 Certificate on remittance to DICGCI 1

2 Discontinued

3 Statement of Cash & Bank Balance as on 12 odd dates 3

4 Certificate on exposure to Sensitive sectors 4

5 Certificate on Ghosh Committee recommendations 5

6 Certificate on Jilani Committee recommendations 6

7 Movement Chart of Gross NPA 7

8 Certificate on restructured accounts 8

9 Certificate on subvention claim for interest relief 2014-15 9

10 Certificate on subvention claim for interest relief 2013-14 10

11 Certificate on subvention claim in respect of Rupee export credit

12 Certificate on incentive for timely repayment of short term crop loan 12

13 Discontinued

14(a) & (b)

Scheme of 1% Interest Subvention to Housing Loans. (For amount of subvention received during the FY 2014-15)

14

15 (a) & (b)

Certificate by Auditors in respect of Education Loan Interest subsidy Scheme -(ELIS) (For claims submitted during the FY 2014-15)

15

16 Discontinued

17 Discontinued

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Corporate Accounts & Taxation Department, 2nd Floor, Baroda Corporate Centre, C-26, G Block Bandra kurla Complex



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18 Claim for Interest Subvention for lending to Women SHG’s for the credit upto 3 Lacs (for the year 2014-15)

18

19 Claim for Additional Interest Subvention for the prompt payment for eligible WSHG from 01.04.2014 to 31.03.2015

19

20 Certificate under the Credit Linked Capital Subsidy Scheme (CLCSS) for the year 2014-15

20

21 Certificate of remittance of recoveries made under CGTMSE Claim settled accounts

21

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BCC: BR: 107/127 Date: 17.03.2015

Dear Sir, Re: Annual Closing of Accounts and Statutory Audit for the financial year ending 31st

March 2015.

Preliminary:

ANNUAL CLOSING of accounts for the year ending 31st March 2015 is approaching fast. Branches / Administrative Offices are requested to gear up for carrying out Closing activities, as the publication of Financial Results is based on the quality touch given to Closing work at the level of Branches as well as Administrative Offices. The annual audited Financial Statements of our Bank are read and analyzed by cross section of public including Shareholders, Regulators, Depositors, Financial Managers, Credit Rating Agencies and overseas regulators / Investors etc. It also displays our Bank’s compliance to various norms / directives, guidelines issued by Reserve Bank of India, SEBI and the Accounting Standards issued by ICAI. We would, time & again, like to emphasise that closing activities are required to be carried out at every level with utmost care and due diligence within a given time schedule so that regulatory requirement and expectations of top management are met. We, therefore, request you to ensure that all the closing activities are carried out very meticulously with accuracy. Corporate Accounts & Taxation Department is issuing Master Circular for Closing since 2008-09 covering detailed guidelines on different areas and the circular has been bifurcated in different sections viz. closing returns, statutory branch audit and certificates etc. to make it further easy to understand. Branches should keep this Master Circular handy for reference purposes.

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CLOSING RETURNS:-

General:- · Branches are aware that we have introduced centralized mapping for generating Closing

return I & II from FINACLE and have freezed the manual intervention / option in generating the closing returns. The wrong accounting may result in to

i. Wrong reporting of the financial information. ii. Reporting negative balances, which may lead to non acceptance of data by the system and

result in non generation of the Returns

Therefore, please scrutinize the Balance Sheet and Profit & Loss Account well before the closing and ensure to rectify the discrepancies if any.

· Verify the codes showing negative balances and rectify before closing the books.

· Ensure that all the accrued income and expenses are booked with due accuracy to avoid any MOC.

· Branches are required to report Memorandum of Changes in connection with rectification for Individual GL/PL head for Rs 50000/- or more. However if there is MOC for reversal of Interest in NPA accounts, Only the MOC is required to be prepared and signed but no entry is required to be passed by the Branch for the said MOC as the same will be passed by system due to centralised marking of NPA. Fund Transfer Pricing (FTP) As per revised procedure for accounting of FTP (H. O. Interest), with effect from Accounting year 2014-15, FTP will be applied on quarterly basis as under:

· Under new system, Data ware house will calculate amount of FTP and provide branch wise

FTP amount to data centre.

· Data centre will pass the entry based on the calculation given by Data Ware House.

· First time HO interest was applied for three months i.e. March, April & May-2014 for June

quarter. Thereafter it was applied for the months of June, July and August-14 for

September -14 quarter and so on.

· Data Centre will credit / debit profit & Loss account of respective SOLs by crediting /

debiting HO (SOL 1087.)

· Branches are required to calculate eligible subsidies and pass entry for claiming

subsidy for the quarter on last working day of the quarter.

For claiming subsidy, entry as under will be passed:

Cr. PL HO Interest earned (subsidies) Account Code no.42801001

Dr. GL HO Interest Receivable Account Code no.26691001

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Closing Return no.1 (Balance Sheet - Form No. 154):

i. Entries for contra items:

a. It should be ensured that contra entry for recovery under PWO is passed through finacle code 63001001 and 73001001 only and balance in both these codes is equal.

b. Entry for claims against Bank not acknowledged as debt should be passed under

finacle code no.61001001 and 71001001 and balance in both these codes should be equal.

ii) For Erstwhile EBNSBL Branches (Erstwhile Benaras State Bank Ltd.) Detailed break up of NRR advances as on 19.6.2002 has been advised to all the EBNSBL Branches. These Branches should ensure that the same amount is reported under Other Assets (Code No.2826). Please note that the amount will not change on account of any recovery in the account. The recovery amount has to be credited to EBNSBL NRR Collection A/c. under Other Liabilities (Code No.5022).

iii) For Erstwhile ESGLBL branches (Erstwhile South Gujarat Local Bank Limited)

Detailed break up of NRR advances as on 24.06.2004 has been advised to all ESGLBL Branches. These Branches should ensure that the same amount is reported under the Other Assets (Code No.2832). Please note that the amount will not change on account of any recovery in the account. The recovery amount has to be credited to ESGLAB NRR Collection A/c. under Other Liabilities (Code 4946).

iv) Erstwhile Memon Co operative Bank Ltd. (EMCBL)

Break up NRR Advances account is provided to all the EMCBL branches. Branches should ensure that same amount is reported under code no.2842. Recovery made after take over should be reported under code no.4933- Collection account NRR Memon Bank Advances Account.

Closing Return no. 2 (Profit & Loss A/c Form No. 249):

i. ii

Branches should report separately Income on account of Postage, telegram, telex recovered, (finacle code no.42701005), Inspection charges (finacle code no.42701014), etc. in separate codes given in Income side. Branches are requested to check before closing the books, if any negative (-) balance is appearing in any code, on account of passing income eg. Inspection charges recovered etc. under expenses head or vice versa it should be transferred to correct account head by passing correct accounting entry.

Closing Return no. 3

In the Closing Return No.1- Balance Sheet, under Contingent Liabilities- gross balance of Bills for Collection Account under Code No. 6200 is reported as per General Ledger of the branch.

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The Break up of the balance should be correctly filled up in Closing Return No. 3. (Item B and C), as per G/L Head. The Branches have to exercise due care to fill in the data in respect of bills received from / sent to our own Offices in the statement after due scrutiny of the G/L Account. This will avoid inflated figure of Bills for Collection for bills sent to our own Offices. In Return No. 3, only the Authorised Branches (B Category branches) will report figures against item ’C’ in column ”Total Amount” and column ”Payable in India”, in respect of bills (payable out side India) received by them from Non-authorised Branches. Further, the figures in the column “Payable outside India” will be reported only by ‘B; category Branches.

Since all the branches are now under finacle, the extant guidelines for lodgement and collection are as under:

CHEQUES :

Lodging branch Lodgement of out station cheques will be done from any CBS Branches through menu option OBC for instruments drawn on any other bank and sent to our branches. Note: No contra entry will be passed at the branch level after lodgement; it will be passed at the centralised branch i.e ( SIR P M Road branch, Mumbai ) Collecting Branch After receiving the forwarding letter along with the instruments from the sending Branch, Collecting branch will open a clearing zone for acknowledging the instrument as per the zones specified. On acknowledgement, contra entries will be reversed at the centralised branch. (SIR P M ROAD BRANCH, MUMBAI) Contra voucher for lodgment /acknowledgement of Outstation cheques will be passed in

centralized branch only through batch job.

Documentary bills :

1. All the outward inland bills will be lodged through the menu FBM under the register OBC

and sub registers OBCS and OBCU (sight, usance).The necessary contra entries at the

time of Lodgement and realisation will be passed at the branch level.

2. All the inland inward bills are lodged through FBM menu under the register IBC and sub registers IBCS and IBCU (sight, usance). The necessary contra entries at the time of Lodgement and realisation will be passed at the branch level.

3. At the ‘B’ category branches, the foreign bills for collection are lodged through the menu FBM under the register FBC and sub registers FBCS and FBCU for the instruments received from their customers as well as other ‘C’ category branches reporting to them. The necessary contra entries at the time of Lodgement and realisation will be passed at the branch level ( ‘B’ category )

4. All the bills received from abroad are lodged through menu FBM under register FIBC and sub registers FIBCS and FIBCU.

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Closing Return no.4 – Claims Against the Bank not Acknowledged as Debts.

1. It is observed that Branches/ Zones are not furnishing the full details of the claims in

particulars column and also there is inconsistency in reporting the amount of claims lodged and amount considered by the auditors. Therefore policy guidelines were framed and the same were advised to branches also vide our master circular no.BCC:BR:103/249 dated 05.09.2011, branches are advised to follow guidelines scrupulously.

2. Branches are advised to ensure that entry in their books has been passed for all claims

against the Bank not acknowledged as debt and reversal of entry has been passed on settlement / deletion of a claim. Branches must ensure that amount reported against code 6125 is tallying with amount reported in Column 5 of Return no. 4. Please also note that at branch level no entry is required to be passed for the amount of provision considered and reported in Column 6 of this Return.

3. Vide our Master circular no. BCC:BR:102:66 dated 02.03.2010 and BCC:BR:103/249 dated. 05.09.2011 branches were advised the guidelines relating to maintenance of records and reporting relating to Claims. We trust that proper record is being maintained by the branches. Please note to keep the same updated.

4. As regards provision the following are the applicable guidelines :

i. In respect of suit filed claims, provisions should be based on following guidelines as approved by the Board :

Claims against Bank not involving tax liability of any type

Provision (%)

Where decree is passed but no appeal is preferred within prescribed limitation period

100

Where decree is passed and first appeal preferred but injunction / stay against execution is rejected.

100

Where decree is passed and first appeal is preferred and injunction / stay against execution is granted.

25

Where as per the rule of law, advance deposit of the decretal amount or the part thereof is required to be deposited with the Court

To the extent of amount deposited in the court.

Where Bank’s appeal is dismissed and Bank prefers a second appeal 50

Where second appeal is also dismissed but on legal advice SLP filed with Supreme Court.

100

ii. Other non-suit filed cases of Rs.10 Lacs & above may be referred to Dy. General

Manager (Legal), BCC, Mumbai through your Regional /Zonal office as a committee will be taking the decision about provisioning in such cases. The Branches should give following details:- a. Name of the Petitioner/ Plaintiff/ Complainant. b. Case Number _____pending before ________Court/ Tribunal/ NCDRC & State

CDRL. c. Amount Involved.

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d. Whether it is first stage/ Appellate Stage/ Second Appeal Cases wherein appeal is pending and Bank has already deposited certain sum in the court as per law or as directed by concerned Judicial Authority, the amount so deposited is to be appraised to BCC Legal Department.

iii. Other non-suit filed cases of less than Rs.10 Lacs may be referred to Regional/Zonal Head for necessary guidance in this matter.

Regions/Zones to ensure that latest status of claims and provisioning requirement is stated in the Returns.

Closing Return no. 6A & 6B – After implementation of FASSET module in finacle system, Return no. 6A & 6B are generated through finacle. Branches are required to ensure that: · All Entries related to Purchase /Sale /Transfer etc. of Assets are passed in FASSET before

closure of FASSET menu in Finacle (which is done normally in the last Week of the Quarter)

· Entries for sale/purchase transactions are passed in the system under correct head and through correct menu.

· Now branches are not required to work out and pass any entry for depreciation, as the same is done through the system.

· Capitalise the cost of ATM/BNA/VSAT/SSPBP/CDM/IBK etc. supplied to them by BCC before the closure of FASSET menu of Finacle. No Entry should be pending in Region/Branch office Administrative/ Intermediary Account for responding in relation cost transfer of these Assets

Branches should generate Return no.6A & 6B through finacle and punch the data in CLORETS system. This may also be noted that Bank has implemented provisions of companies Act 2013 for calculation of depreciation, based on residual useful life of fixed assets. Records of fixed assets are kept on centralized system and depreciation is also applied centrally by Data Centre.

Closing Return no. 7

This closing return is bifurcated in three parts, the details of which are as under: Part A: Sensitive Accounts.

In this part of the closing return, all the accounts which branches were reporting hitherto will continue to report. There is no change in the guidelines. However, branches are advised to exercise due care while reporting the amount outstanding for –3- years and above. It should also be ensured that data reported in this closing return are tallying with statement of agewise breakup of sensitive accounts submitted to higher authorities/ IBO deptt. BCC, Mumbai. Part B: Nostro accounts

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In this part of the closing return only specialized integrated treasury branch (SITB) Mumbai and erstwhile PMOs are required to report outstanding debit entries both in mirror and NOSTRO accounts which are outstanding for –2- years and above. Other branches will report- NIL- under this part.

Part C: Local Branch Office /Local Main office/ Service branch account.

In this part of the closing return the branches should report the balance of the account with LMO/LBO/Service branch against code 2600/4490/2620/4510. Further against the outstanding balance if some amount is outstanding for more than –6- months the same should be reported with net balance i.e debit minus credit or Credit minus Debit. For example if the outstanding against code 2600 is Rs.50,55,000/- and outstanding balance of Debit entries outstanding for more than -6- months is Rs.1,50,000/- and credit entries is Rs.1,10,000/- the net balance Rs.40000/- should be reported in the column for reporting for –6- months and above. As the same is required to be provided at corporate level. Under this part LBOs will report un-reconciled entries of more than -6- months as under:

code Amount outstanding Out of which amount outstanding of un-reconciled entries for -6- month and above

1 2600 If net o/s is in Dr. Dr. entries originated by the branch (LBO)

2 4490 If net o/s is in Cr. Cr. entries originated by the branch (LBO)

3 2620 -NIL- Dr. entries originated by the LMO/Ser.Br.

4 4510 -NIL- Cr. entries originated by LMO/Ser.Br.

Service branch/LMO will be reporting outstanding balance against code no.2620/4510 but will not report any amount for un-reconciled entries as the same is reported by LBOs.

The branches are further advised as under: 1. In sensitive accounts, O/s above 3 years and provision required at HOCORP should be the

same except in refundable/Recoverable Deposits. 2. It has been observed that due care is not exercised by the branches while reporting the

outstanding balance above 3 years. This results in to avoidable correspondence and excess provision. We therefore request to exercise utmost care while reporting the amount above 3 years and suggesting the provision required.

3. Branches should reconcile their account with service branch/LMO on regular basis so that

the account as on 31st March is reconciled timely for reporting in closing Return no.7 and getting the same audited.

4. SITB and erstwhile PMOs should reconcile their NOSTRO account on regular basis so that

the account as on 31st March is reconciled timely for reporting in closing Return no.7 and getting the same audited.

5. Branches/ Regions/Zones are also advised that while reporting the age wise balances of

sensitive accounts/Nostro accounts/ LMO/Service branch account to next higher authority, it

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is ensured that the amount reported, outstanding for –3- years and above, -2- years and above and –6- months and above respectively in part A, B & C of the return.

Closing Return no. 8 – Break up of outstanding entries in GL Suspense A/c

Branches are advised to carefully note the following guidelines: - 1. Advances outstanding in GL Suspense General – if any advance is of doubtful nature the

provision against the same is required to be made to the debit of relevant Profit & Loss account by crediting GL adjusting account - code 4870 at branch level.

2. All the legal expenses are now debited directly to PL- law charges. If any branch is having

outstanding balance in GL law charges account , please ensure that the same has been made NIL to the debit of PL law charges before 31.03.2015.

The amounts in respect of frauds, forgeries, embezzlements, fraudulent or wrong payment etc. are now required to be reported separately in GL code 2802 i.e. Suspense A/c – Frauds.

Closing Return no. 9 – Additional Information/ Certificate This return relates to confirmation regarding verification of cash & Foreign currency notes, security forms, reconciliation of Bank A/cs and confirmation of Compliance with SAP as issued vide HO Circular No. HO: BR: 94/106 dated 23.08.2002. The branches should send the same to Region and Region to consolidate and send to Zonal Office, who should submit the same to Corporate Accounts & Taxation Department, BCC, Mumbai for Zone as a whole. Since there are no data for compilation, reporting will be made only if there is any adverse reporting by any branch. This statement is not to be audited by Auditors.

Closing Return no. 11 – Bad Debts Written-off.

Branches are advised to ensure that – 1. Classification under Priority Sector, Non-priority sector is done with due accuracy as the

data are used for multi-purposes including reporting to RBI. 2. Total of net balance written off should tally with PL Code 1720.

(Bed debts Written off – other than advances: There is a separate head for accounting of bad debts written off other than advances cloret code 1736 (finacle code 54531034). Branches are required to scan code no.1720, this code should have amount related to advances account only. If any other amount is debited to this account it should be transferred to code 1736.)

3. If recovery is received in any written off account during the same financial year in which it was written off, the amount written off should be reported net of recovery for that particular account (actual write off less(-) recovery received after write off during same financial year of write off)

4. Details of the account should be given only in thousands (000’s), for the accounts

where the written off amount is Rs.25000/- & above and this information needs to be provided for all the accounts written-off during the F.Y. 2014-15.

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Closing Return no. 13 - Capital Adequacy – Basel-I

Branches are advised that from 31.03.2011 Closing Ret. No.13 is generated through ASCROM. Branches are advised to generate the Return from ASCROM by invoking the following menu- BASEL II® Risk Weight Assets section A

BASEL II® Risk Weight Assets section B

The detailed guidelines for generation of report are given in annexure-IV attached to this circular. Please note that the ASCROM CELL, shall be separately informing about the improvement/modifications made, if any, for the data updation for March, 2015.

Branches are advised to ensure that the report generated through ASCROM is got audited by Statutory Branch Auditors. Closing Return no. 14 & 14 D – Memorandum of Changes (MOC)

It may please be noted that in view of the concept of materiality, all MOCs with individual head of account for Rs.50000/- and above, need only to be considered for reporting in the MOC Returns. There should not be any MOC in respect of in-house adjustment e.g. for HO interest payable / receivable, Inter Branch Transactions etc. In respect of all the MOCs, necessary rectification entries of actual amount should invariably be passed in branch books, wherever required, subsequent to 31.03.2015 during Financial Year 2015-2016, during the course of Audit itself. No rectification entry should be passed in respect of any error in computation of HO Interest. In case the MOC affects Classification of Advances Accounts, for example Classification of Account into NPA from Standard category, then, besides MOC in Return No. 14-D, any interest reversal affecting P/L, corresponding effect should also be reflected in Return No. 14. (though it may be below Rs.50000/-). In Return No. 14-D the borrower account, which is down graded, should be properly classified, i.e. from Standard category to NPA and correct amount of Interest reversed should be reported in Return No. 14 &14-D.

Moc in respect of subvention claims should also be reported irrespective of amount of Claim . The Branches are requested to classify the advance accounts as per IRAC guidelines and circulars issued by our Recovery Dept. If there is a change in classification of an advance account at the instance of Auditors, the branches are advised to discuss the issue with the Reporting Authority/Zonal Authority, as the case may be, and settle the matter to the satisfaction of the Auditors. The Branches are advised to prepare, submit a detailed note to the higher authorities, in the event of their not agreeing with any MOCs proposed by the Auditors, and to settle the issue at the Branch level itself, with the guidance of the Regional Office. NO ADVANCE ACCOUNT SHOULD BE LEFT FOR DISCUSSION AT REGIONAL OFFICE LEVEL AFTER

BRANCH AUDIT IS OVER. WE REPEAT THAT IN A SITUATION OF DIFFERENCE OF OPINION WITH THE

BRANCH AUDITORS, THE BRANCH SHOULD IMMEDIATELY GET IN TOUCH WITH THE REGIONAL

AUTHORITY WHO WILL PROVIDE NECESSARY GUIDANCE AND SUPPORT FOR FINALISATION OF THE

ISSUES. THIS MAY PLEASE BE CAREFULLY NOTED AND SCRUPULOUSLY FOLLOWED.

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The nature of both MOC-14 & 14D are given below which should be prepared in actual rupees

only.

Sr.No.

Nature of changes / modifications Return No.

I Classification of Advances and provisioning 14 D

II Other changes relating to P/L accounts and Balance Sheet accounts (including reversal of income in case of change in borrowal status from standard to NPA)

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All columns should be properly filled up including GL & PL A/c no. Closing Return no. 15 to 20 on Advances: “ASCROM” Detailed guidelines are as per ANNEXURE–IV.

Closing Return no. – 21 (Applicable to Rural branches only) – Statement of outstanding total deposits & total advances at rural branches Return no-22 Maturity Pattern of various Liability and Assets: Return no. 22 is related to maturity pattern of advances, deposit and borrowings etc. detailed guidelines in this regard are given in annexure-10 to this circular.

B. IMPORTANT ACCOUNTING / CLOSING GUIDELINES:

1. Focused attention on some G/L and P/L accounts:

Branches are advised to ensure the monitoring of following accounts and taking necessary actions before 31st March 2015.

i) Procedure for transfer of Balance in OD account of Administrative offices- Administrative

offices are required to transfer the balance outstanding in their OD account to base branch OD account using menu option ( TM) in finacle on 31st March every year. The menu (TM) will be available to administrative office users on 31st March only for this purpose.

. ii) Recovery in Write off accounts:

· Amount of Bad debts write off should be debited to code no.1720 and proper records should be maintained.

· All recoveries in Bad debts written off accounts including prudential write off accounts are to be reported in P/L Code -3266. (finacle code-42701013)

· The balance outstanding in PWO accounts be tallied and should match with the GL Code -5007/2937 (finacle code-63001001 & 73001001). Discrepancy if any should be informed to Recovery department, BCC, Mumbai.

· Recovery made in the year of write off should not be reported as recovery in write off accounts but be netted in write off accounts itself.

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iii) Proxy accounts: At present entries in proxy account relating to charges (Minimum Balance, Ledger folio, Inward/Outward Clearing return, ECS return, Dormant account charges) outstanding beyond 7 days are reversed periodically by Data Centre and lien marked in the account. The said reversal will be run by Data Centre.

On the last day of closing, all CBS branches are required to ensure that there is NIL outstanding of entries other than charges in proxy account. (Use menu OSPRO for listing outstanding entries other than charges in proxy account)

No provision is required to be made by branches against amount outstanding in proxy account.

iv) All interest income on NPA accounts should be passed through PL code no.5250 (finacle

code 41401012) only.

v) Computer software charges (PL-1651): Finacle code-54521007. This account is meant for debiting software expenses. Since, no software is purchased at branch level ideally there should not be any balance in this account. Please scrutinize the account and ensure NIL balance as on 31.03.2015.

vi) Bills payable account (GL-4390): finacle code 15101001- branches are required to scan this account and if any amount is outstanding in this account it should be transferred to appropriate account. Please ensure NIL Balance in Bills Payable account on 31.03.2015.

vii) BOB Card Limited payment account (Cloret code 2911, Finacle code 26671009) and BOB

Card Limited cheque payable account (Cloret code 4925, Finacle code 15181024). These codes are meant only for Colaba branch and therefore there should not be any outstanding balance against these codes at branches other than Colaba branch. Please scrutinize, monitor and ensure NIL balance on 31st March 2015 against these codes.

viii) PL inspection charges (Cloret code 1670, Finacle code 54501008 and 3269, Finacle code

42701014): It has been observed that branches are using one code only both for Inspection charges recovered and the cost incurred on inspection resulting which negative balance is reported against the above codes. Please note that cost of inspection should be debited to PL code 1670 and the recovery of inspection charges from Constituents should be credited to PL code 3269.

ix) PL Postage code 1550 (Finacle code 54201001) and PL Postage Telegram Telex expenses recovered code 3243 (Finacle code 42701005): It has been observed that branches are not accounting for the postage cost and recovery of postage charges through these accounts. Please ensure that both the codes are used and wrong accounting entries are rectified before 31st March 2015.

x) GL suspense Law charges code 2800 (Finacle code 26501006): Branches are aware that all the legal cost is directly debited to P&L account and a shadow record of the same is maintained. Please ensure that outstanding balance if any against code 2800 is made NIL to the debit of PL Law charges code 1540 (Finacle code 54571001).

xi) PL Commission Earned:- The Statutory Central Auditors have pointed out that branches are not identifying the sub-heads of commission earned and accounting the income under Commission Earned-Others. As a result, the commission earned on Bank’s various

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products is not ascertained and the basic purpose of bifurcation is defeated. Branches are therefore advised to ensure correct accounting of commission earned in respective sub-heads.

xii) As per RBI guidelines the Margin against LC and Guarantee should be reported in other

liabilities, branches are therefore advised to transfer the same in other liabilities (Cloret code 4920) if it is reported under Deposits. For transfer the same from Deposit to Other liabilities branches will have to modify the GL Sub head Code using MENU option “TACBSH”.

xiii) Demat Earning: It has been observed that many identified branches for Demat

business do not account for the Demat earning in correct PL head, due to which it becomes difficult to reconcile the Demat earning with PL and DEBOS (Depository application). We therefore advise to credit the same correctly as under:

Sr. No. FINACLE Code Description

1 42102001 Depository Annual maintenance charges (AMC)

2 42102002 Depository transaction charges

3 42102003 Depository demat charges

4 42102004 Depository pledge charges

5 42102005 Depository stationery charges

6 42102006 Depository postage charges

7 42102007 Depository account opening

8 42102008 Depository penal charges late payment

9 42102009 Depository miscellaneous charges

xiv) Mapping of FINACLE codes with CLORETS code :

In CLORETS there is option available for viewing the Finacle mapping to CLORETS. The navigation is given below.

Balance Sheet Codes: Main Menu -3) Miscellaneous Functions - 6) View GL Mapped File. Profit and Loss Codes: Main Menu -3) Miscellaneous Functions - 7) View PL Mapped File. The output of the option is stored in VW.TXT file. The printout of the same can be taken from Windows/DOS prompt. The soft copy of Closing Returns in PDF formats is uploaded in our banks intranet site under Organisations �HO� ACCTS & AUDIT H.O.�Documents�

Resources � Closing Return No. 1 & 2 and Closing Return No. 3 to 21

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2. Specific Finacle guidelines : - Specific finacle guidelines are attached as Annexure-13 to this circular.

3. Certificate 1 of sharing of the recoveries with DICGCI in claim paid account

The branches are advised to ensure that if they have remitted any amount of share under SL(SSI)1981 to DICGC directly and /or share under SLGS 1971 to nodal branch, they must include this amount in the certificate no 1 and get the same Audited. This certificate should be submitted to respective Regional office with complete break up of the remittances. The Audited Certificate no 1 should be in agreement with the total amount received by the DICGCI during 01.04.2014 to 31.03.2015. The Regional office must ensure that the amount received by nodal branch have been remitted to DICGCI. They should compile the complete details of remittances made to DICGC directly and through nodal branches and consolidate the information in certificate 1 and submit to Zonal office. The Zone are advised to consolidate the certificate no. 1 with complete break up of remittance to DICGC which should tally with the amount remitted through nodal branches and directly by the branches in the Zone for the period 2014-15 and submit to our office. All care should be taken to ensure correctness of the certificate.

4. Interest relief receivable for providing short term credit to farmers for KHARIF

and RABI.

i. Union Budget 2013-14 - Audit & Submission of Additional Claims for Interest

Subvention @ 2% & full claim for Incentive on prompt repayment @3% to

farmers. ii. Union Budget 2014-15- Audit & Submission of Interest Subvention @2.00 %

claim

Rural & Agri. Banking Dept. BCC, Mumbai has already issued the detailed guidelines for calculating and claiming interest subvention & Incentive Subvention on short term production credit provided to farmers vide circular No BCC:BR:107/100 dated 02.03.2015.

5. Certificate no-9

2 % Interest Subvention for crop loans disbursed during the current fiscal

Branches should submit 2.00% interest subvention claims for the whole year duly audited, for the loans disbursed during 01.04.2014 to 31.03.2015.

Clorets code 2895 “GL Suspense -2014-15 Kharif Rabi 2.00% interest Subvention to farmers” (Finacle code XXXX0026501085).

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6. Certificate no-10

· 2% Interest Subvention – Additional Claims for the loans disbursed during

01.04.2013 to 31.03.2014 but continued beyond 31.03.2014.

The branches should submit 2.00% interest subvention claims duly audited, for the loans disbursed during 01.04.2013 to 31.03.2014 but continued beyond 31.03.2014 upto due date or 12 months from the date of disbursement whichever is earlier. Please note that these claims are to be submitted for such period beyond 31.03.2014. The Region and Zone should submit the consolidated audited claim directly to Rural & Agri Banking Dept BCC, Mumbai. As advised, the branches will use the Cloret Code 2993 & Finacle code XXXX0026501078 meant for 2013-14.

7. Certificate no-12

· 3% Incentive for Prompt Repayment to Farmers.

The Branches should prepare the full consolidated claims of three percent incentive paid to farmers, for the loans disbursed during 01.04.2013 - 31.03.2014 and repaid on or before due dates. However total claim period should not exceed 12 months for any account from its disbursement. Such claim duly audited should be submitted to Rural & Agri Banking Dept BCC, Mumbai directly. As advised, the branches will use the Cloret Code 2994 & Finacle code XXXX0026501079 for passing the entry. The branches / regions should ensure that the amount of crop loans disbursed and eligible for subvention (As per audited interest subvention claim submitted for March 2014 certificate-9) should exactly match/tally with amount of disbursement reported in certificate-12 for this year.

8. Scheme of 1% Interest Subvention to Housing Loans. (For amount of

subvention received during the FY 2014-15) (Certificate- 14(a) & 14(b))

Branches have been advised vide Circulars No.BCC:BR:103/61 dated 28.02.2011 the guidelines/clarifications for implementation of the Scheme of 1% Subvention on Housing Loans for limit upto Rs.10/- Lacs with cost of house upto Rs.20/- Lacs w.e.f. 01.10.2009, BCC:BR:103/103 dated 30.04.2011 the increase in eligible limit upto Rs.15/- Lacs with cost of house upto Rs.25/- Lacs and BCC:BR:104/284 dated 08.08.2012 the extension of Scheme upto 31.03.2013. The scheme has been discontinued w.e.f. 01.04.2013.

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Branches are required to get the Audit Certificate from the Statutory Auditor during the Annual Audit for March, 2015 in prescribed format enclosed (Certificate no. 14(a) & 14(b)) for the claims received under the Scheme of 1% Interest Subvention to Housing Loans during the current Financial Year 2014-2015. The certificates should be obtained separately for Earlier eligibility Criteria (Housing Loans sanctioned between 01.10.2009 to 31.03.2011 provided the Sanctioned Loan amount is upto Rs.10 Lacs and cost of house does not exceeds Rs.20 Lacs) and Revised Eligibility Criteria (Housing Loans sanctioned on or after 01.04.2011 upto 31.03.2013 provided the Sanctioned Loan amount is upto Rs.15 Lacs and cost of House does not exceed Rs. 25 Lacs). At Regional Office level Branch wise/ year wise consolidated statement for Region should be got signed from auditors along with Certificate. Similarly the Zonal claim should also be got certified, a certificate should be obtained along with Region wise details and the same should be submitted to Corporate Office, Mumbai.

9. Certificate by Auditors in respect of Education Loan Interest subsidy Scheme -

(ELIS) (For claims submitted during the FY 2014-15)(Certificate-15 a & 15 b)

We refer to the Master circular on Education Loan BCC:BR:106/384 dated 01.09.2014

where in detailed updated guidelines in respect of Education Loan Interest Subsidy Scheme

(ELIS) have been given.

Branches are required to get the Audit Certificate from the Statutory Auditor during the

Annual Audit for March, 2015 in prescribed format enclosed [Certificate No- 15(a)] for

claims submitted during the financial year 2014-15 (i.e., claims of Financial Year 2013-14,

including primary & supplementary claims) under Education Loan Interest Subsidy Scheme

(ELIS).

Reports of the claims lodged can be generated through ‘ELISRPT’ menu option in Finacle

live server by giving half year (year) as 032015.

At Regional Office level Branch wise/ year wise consolidated statement for Region should

be got signed from auditors along with Certificate. Similarly the Zonal claim should also be

got certified, a certificate should be obtained along with Region wise details and the same

should be submitted to Corporate Office, Mumbai.

- Certificate by Auditors in respect of New CSIS Scheme - Relief on Interest for

Education Loans sanctioned/availed upto 31.03.2009 and outstanding as on

31.12.2013 - Claims submitted during the FY 2014-15. (Certificate- 15 b)

We refer to the Circular No.BCC:BR:106/72 dated 01.03.2014 where in guidelines in respect

of New CSIS scheme to provide interest relief to students who were sanctioned/disbursed

Education Loans upto 31.03.2009 and outstanding as on 31.12.2013 to the extent of

outstanding interest component, have been given. Subsequent clarification on income

certification has been conveyed vide Circular No.BCC:BR:106/175 dated 13.05.2014.

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Branches are required to get the Audit Certificate from the Statutory Auditor during the

Annual Audit for March, 2015 in prescribed format enclosed [Certificate No- 15(b)] for

claims submitted during the financial year 2014-15 under the captioned scheme.

At Regional Office level Branch wise/ year wise consolidated statement for Region should

be got signed from auditors along with Certificate. Similarly the Zonal claim should also be

got certified, a certificate should be obtained along with Region wise details and the same

should be submitted to Corporate Office, Mumbai.

10. National Rural Livelihoods Mission (NRLM) – Aajeevika ; Interest

Subvention Scheme for SHGs for the period 01/04/2014 to 31/3/2015:

o Union Budget 2014-15 - Audit & Submission of interest subvention (Maximum upto 3.50% i.e. the difference between 7% and the actual interest charged/ applied) of the identified eligible women SHGs.

o Union Budget 2014-15 - Audit & Submission of Additional Claims for Interest Subvention @ 3% to Women Self Help Groups on prompt repayment.

The Rural & Agri Banking Dept. BCC, Mumbai has already issued the detailed guidelines for providing interest subvention & Additional Subvention for providing credit to Women Self Help Groups vide circular No BCC:BR:106:2106 dated 12/12/2014

Certificate no-18 – Interest subvention NRLM Claims:

· The branches should submit interest subvention claims at the rate of the difference between 7% and the actual interest charged/applied (i.e. maximum upto 3.50%) duly audited, for the loans outstanding during 01.04.2014 to 31.03.2015.

· The Region and Zone should submit the consolidated audited claim directly to Rural & Agri. Banking Dept. BCC, Mumbai.

· As advised earlier the branches will use the Clorets Code 2997 & Finacle code xxxx0026501082 (where xxxx refers to Sol ID) meant for 2013-14/ 2014-15.

It should be ensured that the amount of the certificate tallies with the balance

outstanding in this Finacle/Cloret code.

Certificate No -19

3% Incentive for Prompt Repayment to Women Self Help Groups.

· The Branches /Regions should prepare the full consolidated claims of three percent incentive paid to the eligible Women Self Help Groups, for the loans outstanding during 01.04.2014 - 31.03.2015.

· Such claim for the period 01.04.2014 to 31.03.2015 duly audited should be submitted to Rural & Agri. Banking Dept BCC, Mumbai directly.

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· As advised earlier the branches will use the Clorets Code 2998 & Finacle code xxxx0026501083 (where xxxx refers to Sol ID) meant for 2013-14/ 2014-15.

It should be ensured that the amount of the certificate tallies with the balance

outstanding in this Finacle/Cloret code.

11. Utilization Certificate under the Credit Linked Capital Subsidy Scheme (CLCSS) for the year 2014-15 (Certificate- 20)

The branches are advised to ensure that the subsidy amount received under the captioned scheme during the Year 2014-15 is to be retained in TDR for Three years as per the circular No.BCC:BR:104/98 dated 19.03.2012. The branches must include details of units in respect of whom the subsidy amount is received under CLCSS SCHEME in the above certificate and get the same Audited by the Statutory Auditor of the Branch. This Audited certificate should be submitted to respective Regional authorities for consolidation. The Regions are advised to compile the details of all certificates received from the branches and ensure that the consolidated subsidy amount is tallied with the subsidy amount received from the Zone during the year 2014-15. The Regions should submit the consolidated information in the above certificate duly audited to the Zonal office. The Zones are advised to compile the details of all certificates received from the Regions and ensure that the consolidated subsidy amount is tallied with the subsidy amount received from the MSME Banking Department, BCC during the year 2014-15. Similarly the Zones should also get the certificate audited and the same should be submitted to Corporate office, Mumbai All care should be taken to ensure correctness of the certificate.

12. Certificate of remittance of recoveries made under CGTMSE Claim settled accounts (Certificate- 21)

Attention of the Branches is invited to the CGTMSE guidelines contained in

Master circular No. BCC:BR; 106:394 dated 01.10.2014 on CGTMSE wherein

the procedure for sharing of recovery with CGTMSE is furnished by way of

examples also. Accordingly the branches are required to deposit the recoveries

in the claim settled accounts after adjustment towards the cost incurred by the

Bank for recovery. Now the CGTMSE is seeking the verification of the said

arrangement of depositing of recoveries in such accounts. Hence the branches

are required to get the certificate as per Annexure, with account wise details

and duly tallied as per the guidelines given therein from the Statutory

Auditors of the branch as at 31.3.15. This Audited certificate should be

submitted to respective Regional authorities for consolidation.

The Regions are advised to compile the details of all certificates received from

the branches and ensure that the consolidated claim amount is tallied with the

claim amount o/s in GL CGTMSE claim received account GL Code 4794 as at

31.3.2015. The Regions should submit the consolidated Account wise

information in the above certificate duly audited to the Zonal office.

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The Zones are advised to compile the details of all certificates received from the

Regions and get the certificate audited with Account wise details and the

same should be submitted to Corporate office, Mumbai. All care should be taken

to ensure correctness of the certificate. Please refer to circular

No.BCC:BR:106:195 dated 30.5.2014 on the Maintenance of GL CGTMSE claim

received account.

13. BASEL II – Capital Adequacy Guidelines:

Ø Our bank implemented the New Capital Adequacy guidelines, based on Basel II accord, issued by Reserve Bank of India in April 2007, with effect from 31st March 2008. The new version of ASCROM system takes care of the Standardised Approach for Credit Risk under the New Capital Adequacy Framework (Basel II). Please refer to ANNEXURE-IV to this circular containing the guidelines for inputting the data in the ASCROM system, including data on Basel-II guidelines.

Ø Risk Management Department has issued following circulars in connection with implementation of Basel-II guidelines:-

i) BCC: BR: 102:308 dated 01.11.2010 ii) BCC: BR: 104: 68 dated 22.02.2012

Ø For accurate computation of Risk Weighted Assets on domestic advances, it is

imperative for the branches to ensure the integrity of ASCROM data. Some of the important points, contained in above Circulars, are given below for attention of branches for updation of Basel-II data in ASCROM system:-

i) Branches should DELETE all limits under CC/OD & BP/BD facilities from ASCROM/

transaction system, which are not in force and effect. In respect of accounts with interchangeability clause, total limit should not exceed the borrower’s sanctioned limit in the ASCROM system. The un-availed credit limit under line of credit should be reported under Cash Credit limit. Any consolidated limit maintained by International Business Branch for other branches, limit should reflect only outstanding amount so as to avoid computation of RWA on the difference between limit and outstanding balance.

ii) The latest sanctioned/ reviewed credit limit should be updated in the ASCROM

system in respect of all advance accounts. Further, branches should tally the sanctioned limits in the branch transaction system with that in the ASCROM.

iii) In all Term Loan accounts where disbursement is to be done in stages, branches

should enter disbursement schedule as per terms of sanction or expected schedule of disbursement. Branches should update the field “Principal Amount” with every disbursement of term loan. Wherever further disbursement is not to be permitted, the “Term Loan Limit” and “Principal Amount” should be made EQUAL. The accuracy of this data is essential for computation of risk-weighted assets on undrawn commitment in Term Loan accounts.

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iv) Complete details of Credit Risk Mitigants (CRM) securities should be entered and updated correctly through the relevant menu in ASCROM. Gold, as security, should be treated as CRM security and Equity Shares, as security, are not to be treated as CRM security.

v) Institutional Guarantee includes, ECGC, CGTSI, State/Central Govt. Guarantee,

Guarantee of Banks and Guarantee of other Corporates with external credit rating of not less than AA. Such guarantees are to be treated as CRM. In cases where CGTMSE coverage is available, branches should take care to ensure that G/L code is 2166/ 2176/ 2255/ 2355 and Special Category code 75 for such accounts branch need not to feed the coverage amount manually in the Ascrom system as the system has been upgraded for automatic calculation of exposure amount covered under CGTMSE guarantee and thus calculation of risk weight. For account where ECGC coverage is available to the Bank, branch has to update certain information at the customer level and at account level in the Ascrom based on which the system will calculate the coverage amount available in an account and will risk weight the exposure accordingly.

vi) Wherever the account is externally rated, the External Credit Rating should

invariably be entered in the ASCROM. In India the instances of Issuer rating widely known as Borrower rating is very few and most of the ratings awarded by rating agencies are Issue rating i.e. rating of a particular facility.

The branch should review the data on external rating and ensure that applicable external credit rating data is captured in Ascrom. The procedure for entering the external credit rating data in the ASCROM system is as under:

A. Issuer rating (Borrower Rating) data can be entered through menu:-Basel II->cust/Guar rating->select branch by entering branch code->select customer name->add rating.

B. Issue Rating (Facility Rating) data in the ASCROM system can be entered through menu:-Basel II ->Account short/Long term rating ->enter branch code->enter account id->add rating.

For removing an existing data related to external rating, the following procedure may be followed:

1. Issuer rating (Borrower Rating):-Follow the menu->Basel II->Cust/Guar rating->select your branch by entering branch code->select customer name->Edit rating, then click ” to delete” button and press “ complete” button and Exit.

2. Issue Rating (Facility Rating):-Follow the menu->Basel II ->Account short/Long term rating ->enter your branch code->enter account id-> Edit rating, then click” to delete” button and press “complete” button and Exit.

vii) Branches should update the value and date of valuation of collateral security in the

ASCROM. The residential and commercial property securities should be entered appropriately against the respective accounts.

viii) Branches to enter the turn over data for all the accounts scrupulously as the wrong

feeding of data would change the asset classification under Basel II in the Ascrom system and corresponding risk weight thereon.

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ix) Branches to reconcile the amount of Commercial Real Estate exposure mentioned in

Certificate 4 with the same mentioned in Master Summary of Risk Weighted Assets (With Undrawn).

Ø The above points briefly cover the instructions regarding Basel-II data updation in ASCROM. Branches should scrupulously follow the guidelines conveyed vide above Circulars.

Ø Apart from the above Basel-II related inputs, branches are requested to update the

data in respect of latest applicable interest rate, internal credit rating and activity code in all advance accounts. This data is required by Risk Management Department for generation of various MIS reports and analysis. Therefore the integrity of this data should be ensured by the branches.

Ø Branches are requested to follow the maker-checker concept in finalization of data populated in the ASCROM system. Branches should ensure that the Basel II data is invariably checked by another official before its submission to Regional Office.

Ø Risk Officer/ Credit Officer at Regional office will validate data in the ASCROM system

for all exposures of more than Rs. 10 crores.. At CFS branches, the ASCROM data for exposure of more than Rs. 10 crores should be verified by an independent officer at the branch.

Ø Before audit and submission of ASCROM data RO and ZO should take a print out of

Risk Weighted Asset (RWA) work sheet for the current quarter and compare the same with that of the previous quarter to detect any undue variation. Any wide variation in a particular risk asset category should be satisfied with. The branch can generate this report through the path, Basel-IIà Basel-II worksheetà Branch codeà Select Basel

category & Risk Weightà Report.

Ø Latest External rating information is to be invariably updated in the Ascrom system.

Branches should note that the External ratings, assigned by the RBI approved agencies are valid for 15 months from the date of its issuance.

Branches should ensure that the external ratings assigned to various facilities/Issues of the borrower/Issuer are to be entered at the account level only and not in menu meant for Borrower/Issuer rating. (Refer to Circular no.BCC: BR: 104:433 dated 05th December, 2012.)

Ø After finalizing the Basel II data (after making it error free), following statements are to be generated / printed by the branch and got audited by the Statutory Branch Auditors.

“Master Summary of Risk Weighted Assets for the Branches”

The above report is available in Basel II module. This report will be audited along with ASCROM Returns and is to be forwarded to controlling office, i.e. branches to Regions and Regions to Zones. Basel –II return i.e. MASTER SUMMARY OF RISK WEIGHTED ASSETS of the Zone should be audited by the Zonal Auditors. Zones should forward audited Zonal Basel – II returns to Risk Management Department, Baroda Corporate Centre, Bank of Baroda, Bandra Kurla Complex, Mumbai – 400051.

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The Basel-I (Return No.13) statement on Capital Adequacy is to be sent to Corporate Accounts & Taxation Dept., BCC, Mumbai.

For any clarifications on the above, the Zones/ Regions may please contact our ASCROM and /or Risk Management Deptt. at Baroda Corporate Centre, Mumbai at email- [email protected], Tel- 022-66985365, Fax- 022-23523514.

Guidelines for collation of Basel III data are given as under:-

Ø Basel III guidelines: Please refer to the RBI circular DBOD.No.BP.BC.98/21.06.201/2013-14 dated 1st July’2013 on Basel III Capital Regulations. As per the circular our bank is required to compute Capital Adequacy Ratio (CRAR) as per the Basel III guidelines by the close of business as on 31st March 2015.

As a part of the assessment of regulatory adjustments and deductions to Capital Funds, the following items are required to be complied in respect of domestic Treasury operations/ overseas operations as on 31.03.2015 : - Specialized Integrated Treasury Branch, Mumbai:

Sr. Para of the Circular

Item Data Required

1 Section ‘C’, Para 4.3, Page 26

Cash Flow Hedge Reserve, to be derecognized.

Positive amount to be deducted and negative amounts to be added back.

2 Section ‘C’ Para 4.8, Page 29

Investments in own shares (Treasury stock)

Investment in mutual funds/Securities which have long position in Bank of Baroda shares/AT1/T2 Capital instruments data as per template.

3 Section ‘C’ Para 4.9, Page 30-39

Investment in capital of banking, financial and insurance entities.

Data on Bank’s investment in capital funds of Banking, Financial and insurance entities as per template.

4 Annex 2, Para 1, Capital Charge for Credit Risk

The Banking Book Capital Charge calculation has been amended in certain paragraphs.

5 Annex 2, Para 2 Capital Charge for Counterparty Credit Risk

The implementation of Capital Charge for CVA risk in domestic /overseas derivative operations

6 Annex 2, Para 5 Capital Charge for Market Risk

The Trading Book Capital Charge calculation has been amended in certain paragraphs.

Overseas Branches:

Sr. Para of the Circular Item Data Required

1 Section ‘C’, Para 4.3, Page 26

Cash Flow Hedge Reserve, to be derecognized.

Positive amount to be deducted and negative amounts to be added back.

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2 Section ‘C’ Para 4.5, Page 27, Gain on sale related to Securitization transactions.

Derecognition of increase in equity capital from a securitization transaction associated with expected future margin income.

Amount of realized or unrealized gains at the inception of the securitization transaction.

3 Section ‘C’ Para 4.6, Page 27, Cumulative gains and losses due to changes in own credit risk on Fair Value Financial Liabilities.

Derecognition of unrealized gains and losses resulting from change in fair value of liabilities due to change in Bank’s own credit risk.

Amount of gain or losses due to change in fair value of liabilities.

4 Section ‘C’ Para 4.8, Page 29

Investments in own shares (Treasury stock)

Investment in mutual funds/Securities which have long position in Bank of Baroda shares/AT1/T2 Capital instruments data as per template.

5 Section ‘C’ Para 4.9, Page 30-39

Investment in capital of banking, financial and insurance entities.

Data on Bank’s investment in capital funds of Banking, Financial and insurance entities as per template.

6 Section ‘C’, Para 4.9.2.1, Page 33

Reciprocal Cross-holdings in the capital of Banking, Financial and Insurance entities.

Amount of investment by any banking financial and insurance entities in the MTN issue capital instrument of Bank of Baroda.

7 Annex 2, Para 1, Capital Charge for Credit Risk

The Banking Book Capital Charge calculation has been amended in certain paragraphs.

8 Annex 2, Para 2 Capital Charge for Counterparty Credit Risk

The implementation of Capital Charge for CVA risk in domestic /overseas derivative operations

9 Annex 2, Para 5 Capital Charge for Market Risk

The Trading Book Capital Charge calculation has been amended in certain paragraphs.

Hence Specialized Integrated Treasury Branch, Mumbai and Overseas territories are

requested to prepare the required returns on 31st March 2015 and every quarter end

thereafter and get the same verified by Auditors.

The steps for compilation of Basel III statements are as follows:

1. The data in the desired format (as sent earlier) will have to be submitted to the Risk

Management Department latest by 5th of the following quarter’s first month.

2. Risk Management Department will carry out an analysis as to which are the exposures

which should be risk weighted and which are the ones that should be deducted from

capital. Risk Management Department will advise the same within 3 days of the receipt of

returns from Treasury/International division.

3. After inclusion of these accounts for Risk Weighting and using the Basel III guidelines for

those portfolios where risk weighting and capital charge treatment has been revised in

comparison to Basel II guidelines, the Basel III returns will have to be submitted to the

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Risk Management Department for compilation. The returns will have to be submitted along

with Basel I/II returns latest by 15th of the following month.

14. Segment Reporting

As per RBI’s guidelines Segment Reporting is forming part to the Notes on Accounts. For the current year ending 31.03.2015 segments will consist of following: - (a) Treasury Operations (b) Wholesale Banking (c) Retail Banking (d) Other Banking Operations. Branches should ensure correct reporting/ classification of Advances Accounts in ASCROM as the data are retrieved from ASCROM for the purpose of Segment Reporting.

15. Significant Accounting Policies

Significant accounting policies of the Bank for the current year 2014-15 are as contained in ANNEXURE-VII.

16. Additional Disclosure – Maturity pattern of Liabilities and Assets: Statutory audit of ALM statement:

The guidelines for compliance in respect of the above as provided by our Risk Management Department are given in ANNEXURE- X to this Circular.

17. Restructuring of Advances Accounts:-

Branches are aware that banks are required to make provision for future interest sacrifice in respect of advances restructured on or before 26-08-2008 and also make provision for diminution in the fair value of advance, for all the advance accounts restructured on or after 27-08-2008 as per the extant RBI guidelines. At the time of closing of accounts for financial year 2008-09 and 2009-10 detailed guidelines in this regard had been issued by Credit Monitoring Department, BCC Mumbai vide circular no. BCC: BR: 101:102 dated 01-04-2009 and closing circular no. BCC: BR: 102/66 dated 02-03-2010. As per RBI guidelines the interest sacrifice/diminution in the fair value may be re-computed on each balance sheet date till satisfactory completion of all repayment obligations and full repayment of the outstanding in the account, so as to capture the changes in the fair value on account of changes in BPLR/Base Rate, term premium and credit category of the borrower. Consequently, Banks may provide for the shortfall in provision or reverse the amount of excess provision held in the distinct account. Detailed guidelines for computation of interest sacrifice is given as per annexure-XII to this circular.

a) Branches to note that no entry for the provision on account of interest sacrifice / diminution in the fair value of the restructured accounts will be passed at branch level.

b) If no account is restructured during the period NIL Certificate-8 is to be submitted.

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c) A borrower may have more than one account. As such diminution in fair value as per above should be calculated in respect of accounts restructured only. However, for the purpose of disclosure outstanding in all the facilities also to be furnished in Certificate -8 & annexures.

18. Data on Unhedged Foreign Currency Exposure (UFCE)

Branches are required to collect the information from all its borrowers (with exposure of over Rs 25 crores) seeking information on Unhedged foreign currency exposure and EBID of the borrower. Necessary guidelines/ format as per annexure-XV is enclosed to this circular. Guidelines in this regard was issued by DFB department vide circular no.BCC:BR:106:365 dated 17.09.14 and BCC:BR:DFB:106/90 dated 27.11.14. (Annexure-XV)

19. Income Recognition/ Asset Classification (IRAC): -

i) Income recognition, Asset Classification, Provisioning etc.

The Branches are requested to be guided by the circulars/instructions issued in this regard, from time to time, by our Recovery Department, Baroda Corporate Centre, Mumbai.

ii) Appropriation of recoveries in NPA accounts.

We reproduce below the guidelines regarding appropriation of recoveries in NPA Accounts as contained in Domestic Recovery Policy 2014. In respect of existing NPAs, where suit is not filed, recoveries effected in the account (including recovery under Public Money Recovery Act) from time to time should be appropriated in the following manner: a) Towards reduction in Book dues b) Recovery of Expenses c) Towards unapplied interest

Recovery in suit filed/ decreed accounts should be appropriated first towards legal charges/ Expenses awarded by the court, thereafter interest due and finally principal amount.

iii) Recovery Agents’ charges: Branches should note that payment made to recovery

agent is debited to respective advance account and net balance is written off / written back. Please note that Recovery agent charges should not be paid to the debit of PL Sundry Charges.

iv) Branches to ensure to carry out stock audit for NPA accounts having working capital exposure of Rs.50 Crores and above and updation in ASCROM System.

v) Branches to update the value of Securities in ASCROM system as per latest (not older

than three years) valuation. (branches to ensure without fail) vi) In case of Consortium/Multiple Banking accounts only our share of Value of securities

out of total value of Securities charged to Banks as per latest valuation report (not older than 3 years) latest stock statement (with in last 6 months) or Stock Audit (in case of

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working capital of Rs. 5 Crores and above within last 12 months) should be incorporated in ASCROM. (branches to ensure strict compliance)

vii) Classification of all facilities sanctioned to one borrower should be uniform by ensuring

same customer ID in all the facilities including Advance Bills and Bills past due. (branches to ensure strict compliance)

20. Provision for additional Lease Rent – Pending execution of lease deed: As per extant guidelines Branches are making Provision for additional lease rent where

renewal of lease deed is overdue and such Provision is carried forward continuously in books till the Finalisation/Execution of fresh Lease Deed. But TDS on such provision is not deposited/deducted and therefore, Income Tax Department disallows such expense. The issue has been examined and it has been decided that the Branches/Administrative Offices should debit Rent to Profit & Loss Account at the rate at which the rent is presently being paid, pending execution/ renewal of Lease deed. On finalisation and execution of fresh lease deed with the revised/increased rent, the difference in the rent as worked out from its effective date should be booked / charged to Profit & Loss A/c. in the year in which the deed is finalized and rent is paid to the Land Lord. Provision amount if any, lying in GL Adjusting Account should also be reversed.

21. Analysis of some important financial data: We would like to inform that while presenting the Financial Results to ACB/Board, we are required to submit Trend Analysis and reasons for major variances. This exercise is done only after finalizing the results and we are left with no time to get the issues clarified from the zones, resulting in unnecessary pressure at every level to obtain information from various sources for proper presentation to ACB / Board. With a view to overcome, we are enclosing herewith Annexure-II named as “Variance Analysis Sheet”. Zones are requested to analyze the figures of few items mentioned therein and submit the same with comments on major variances, if any by 06.04.2015

22. Reconciliation of ASCROM and Balance Sheet figures:

Branches must ensure that amount of outstanding advances and sub heads as reported in closing return No.1 (Form No. 154) tallies with figures reported by the Branches in GL Error Report before submission to next higher authority. However, in case there is a difference (e.g. due to non transferring the credit balances to deposit a/c), a reconciliation statement should be prepared by the branch and submitted to Regional Office as per format given here below:-

(Amt. In Rupees)

Br. Name Code No.

Balance as per F.No.154

Balance as per ASCROM

Difference Remarks

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Regional Office should consolidate Ascrom data and verify the same with RO GL Advances. The statement of difference in Ascrom and GL balances should be prepared and submitted to Zonal Office. Regional Office should also send the Reconciliation Statement to Ascrom Cell along with the Ascrom data. Zonal Office in turn, should prepare Consolidated Reconciliation Statement and send the same to Corporate A/cs Department, BCC, Bandra (E), Mumbai with a copy to Ascrom Cell, BCC, Mumbai.

23. Others:

· The Branches should ensure reversal of entries pertaining to Expired Guarantees as per procedure, and as per extant guidelines. However, they should satisfy that no claim is pending against those Guarantees. Non-adherence to this results in showing inflated figures of outstanding in Alive Guarantees portfolio, resulting in adverse impact on Capital Adequacy Ratio.

· Branches to ensure to mark ‘87’ under special category code in ASCROM

against fraud related advance accounts.

· The Branches are advised to follow the latest guidelines issued by Recovery Department in respect of accounting of Interest and application of interest in Substandard NPA A/cs, carefully.

· The Branches are submitting quarterly statements for Sensitive A/Cs. e.g. Suspense A/c., Special Debit A/c, etc. It is observed by the Statutory Central Auditors that balances of these A/Cs, as per this statement, do not tally with the balances reported in the Balance Sheet/Closing Returns. Branches are, therefore, advised to ensure that balances shown in respective heads in this statement match with figures shown in their Closing Returns.

· The Bank is required to make substantial amount of Provision on account of entries

outstanding in Balancing / Reconciliation of accounts of RBI / SBI / LMO / LBO / Special Debits etc. The Branches are, therefore, advised to ensure that all these accounts are reconciled well in time, and that all the pending entries are squared off / passed before closing of accounts. In terms of Cir. No.CO: BR: 95/101 dated 20.03.2003, the Bank has to make 100% provision against net debit balance in IBT Accounts, if entries remain unreconciled for a period of 6 months and above. We, therefore, request the Branches to ensure that reconciliation of pending entries is attended on TOP PRIORITY basis, and brought to zero level, particularly in the age brackets of 6 months and above.

· Debit Card Pool Account:-

All the branches are required to ensure that all schedules pending to be generated with transfer of balance to pool account to Colaba (Base Branch), are generated and that the balance in G/L “Debit Card Pool Account (XXXX0031101055)” / “Cash in BNA Pool Account (XXXX0031101154)” as on closing date contain the balance of only last working day’s transactions and all pending I schedules for cash unloading in ATM / BNA / Cash Recyclers are prepared and sent to Bobcards. Nodal / Cash replenishing branches are to ensure that:

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· ATM cash loading prior to 2nd March 2015 – Z schedule is prepared & sent to Bobcards and entry of same has been made in Bobcards package of online Z schedule system for reconciliation.

· ATM cash loading effective from 2nd March 2015 – The details of cash loading has

been entered through new menu option HATMCASH as advised vide circular no BCC:BR:107 / 84 dated 23rd February 2015.

· BNA / Cash Recycler cash loading - Z schedule is prepared & sent to Bobcards and

entry of same has been made in Bobcards package of online Z schedule system for reconciliation.

· Cash unloading from ATM / BNA / Cash Recyclers – I Schedule is prepared / sent

to Bobcards for reconciliation. · All Z schedules for cash loading are prepared and sent before closing of books. · Cash with ATM agency is reconciled as on closing date. · Physical cash in ATM is to be verified during the month of March 2015 and

certificate in this regard is to be sent to respective Regional Office. · The cash with the Agency Account must tally with the balance available in books of

Nodal branch under G/L head of Cash with ATM Agency."

· IBTA (BITTA)

On implementation of Global treasury in India, FEXTA account has been discontinued and BITTA account is introduced (The methodology adopted in handling BITTA accounts warrants zeroisation of the account at the branch level on daily basis). For this a control is built in Finacle to check whether the account is Zero before proceeding to End of day.

We understand from Specialized Integrated Treasury Branch that some of the branches resort to parking of the funds in some accounts to facilitate End of Day operation, in case BITTA account is not zero. So in order to track such entries regional offices are instructed to monitor and advise on monthly basis any such entries to SITB.

Branches are advised not to resort to parking of fund in any other account which would be viewed seriously and would also defeat the objective of online reconciliation.

· PL Code No. 3221, 3259 and 3260 in respect of Rent received on property:

Branches are advised to note following guidelines: a. Code No. 3221 – Misc. Income – Rent Received from Premises Leased for

Commercial Purpose: The code is for crediting rental income of the Bank’s Premises let out for commercial purpose only. Please ensure that service tax is recovered from tenants.

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b. Code No. 3259 – Misc. Income – Rent Received from Tenants of Bank’s own Property: The Code should be used for crediting rental income from letting out the premises for residential purpose.

c. Code No. 3260 – Misc. Income – Rent Received from Bank’s own properties: The Code is meant only for foreign branches of the Bank. Therefore Indian branches should not use this Code. If there is any balance in this Code, the same should be transferred to either Code No. 3221 or Code No. 3259 depending on the nature of the income.

· GL Baroda RTGS Account:

We refer to the HO Circulars HO: BR: 97:214 dated 27.10.2005, BCC: BR: 99:17dated 10.01.2007, HO: BR: 99:53 dated 20.04.2007 and BCC: BR: 99:197 dated 19.06.2007.

a. G/L code No. 5034 on the liabilities side and G/L code No. 2966 on the Assets Side

are meant for use by only Specialized Integrated Treasury Branch, Mumbai for their Real Time Gross Settlement (RTGS) account maintained with Reserve Bank of India, Mumbai. As such, there should be -NIL- balance in Closing Return No. 1 under GL Code 5034 and GL Code 2966 of all branches.

b. All RTGS transactions (outgoing/incoming) at branch level are routed through GL

BARODA RTGS ACCOUNT (XXXX0031101070) {where XXXX stands for the SOL ID of the branch}. The balances under GL Baroda RTGS Account (XXXX0031101070) are to be reflected in GL Code 4589 BARODA RTGS A/c.(Liability Side) for credit balances and GL Code 2649 BARODA RTGS A/c (Asset side) for debit balances at branch level so that there are no negative balances under liabilities side in GL Code 4589 in Closing Return No. 1 In form 154 (Closing return No. 1), the code 4589 shall appear under Sr. No. 3.2 and Code No. 2649 shall appear under Sr. No. 5.1- Inter Office Adjustments.). Branches should ensure that the balance under GL BARODA RTGS ACCOUNT (XXXX0031101070) as per FINACLE is correctly mentioned in the Closing Return No. 1.

c. Branches should ensure that there are no outstanding balances under GL Sundry Deposit RTGS Inward A/c (XXXX0013201005) and GL Sundry Deposit RTGS Outward A/c (XXXX0013201006). There should be NIL balance under GL Sundry Deposit RTGS Inward/Outward Account.

· Break-up of Interest Paid / Received by PMOs & SITB: Erstwhile PMOs and Specialised Integrated Treasury Branch should provide the break-up of Interest Paid & Received as per ANNEXURE-VI enclosed.

· List of items for which provision is not to be made at branch level:

Branches are generally not required to made provision at their end. We enclose ANNEXURE-IX in which we have specified the items against which provision is not required to be made at branch level.

· Important changes during the current financial year:

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Important changes made during the current year has been summarized in Annexure – XI for ready reference.

Prior to closure of books, branches should follow the guidelines given in the Circular and also the guidelines issued from various departments relating to their functional areas so that there is no adverse comment besides compliance of corporate instructions. We also enclose check list as Annexure I. Branches are advised to go through the check list thoroughly before closure of the books to eliminate the possibility of mistakes. Reconciliation Guidelines on borrowing placement of Foreign Currency Funds (Applicable to erstwhile PMO’s, SITB Mumbai and International Division):

At present International Division and Treasury branch are submitting Note 2A and 2B

relating to borrowing and placements of funds. Whereas erstwhile PMO’s i.e. Ashram Road Ahmedabad, IBB Delhi, IBB Kolkata, IBB Chennai and Mumbai Main Office are submitting the same separately. In view of large variances observed we advise the guidelines as under:

1. International Division should ensure that there is no wide gap between borrowing and

placement and other liabilities and other assets in inter territory accounts of Overseas Branches.

2. SITB reports the net NOSTRO balances against GL Code 2685/4560 whereas Overseas Territories are reporting the balance against Code 4561 and 2686 SITB should ensure that these accounts are reconciled and there is no major variance / float of pipeline transactions.

3. Erstwhile PMOs are also maintaining accounts with Overseas Branches for FCNR(B)

Funds and the same is reported against GL Code 2683 and Overseas Branches are reporting the same against GL Code 4561 / 2686. The funds placed with SITB by PMOs are reported against GL Code 2680 and 2682 and borrowing against Code 4576 and 4578. These borrowings and placements are reported by SITB as placements and borrowings against liability Code 4576 / 4578 and assets Code 2680 and 2682. in case of wide gap PMO should ensure that these accounts are reconciled and there is no major variance / float of pipeline transactions.

C. Compliance to the observations made by Statutory Central Auditors: Our SCAs from time to time conveying to the top management their observations on the working of the branches on which we assure the compliance at all the level. We give here below the gist of such observations made during the year along with suggested actions. We request the branches to ensure the compliance of the observations:

Sr.No

Observation Suggested Action

1 Deficiency in updation of ASCROM data Like category code, value of security

Branches are advised to ensure that Category code in sector codes are checked properly and value of security is updated correctly in the system.

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2 External Credit Rating External credit rating has not been obtained at the prescribed intervals in many cases.

Branches should ensure that the external credit rating has been obtained as per terms of sanction as the same also affects the CRAR of the Bank as per BASEL II.

3 Updating data in the system on a timely basis. Major parameters such as date of sanctions/ LAD/DP /nature of security are not updated in the system, thereby causing the review process to be more cumbersome and causing a burden on the systems.

Branches are requested to ensure that the data are updated on continuous basis.

4 Credit Monitoring Substantial amount of expired Bank Guarantees is shown as live by the branches, which has a corresponding effect on Capital adequacy and other disclosure in reporting requirements.

Branches to follow the guidelines given in Book of instructions scrupulously, precisely: - Ones the guarantee expires and no claim is received, Bank’s liability expires and entry should be reversed - however in case of guarantee in favor of Government department entry may be reversed on receipt of letter only

D. Certificates to be obtained:

For certain specific purposes, the Auditors’ certificate are required to be submitted to Reserve Bank of India / DICGCI / other authorities, and for making Additional Disclosures in the Final Accounts. Therefore, the Certificates, as detailed below, should be obtained duly signed by the Branch Auditors. In cases where the Branch is not covered under audit, the Certificates, in the same format, should be signed by the Branch Manager and submitted to the respective Regional Offices.

i. Cer. 1 of sharing of the recoveries with DICGCI in claim paid account

The branches are advised to ensure that if they have remitted any amount of share under SL(SSI)1981 to DICGC directly and /or share under SLGS 1971 to nodal branch, they must include this amount in the certificate no 1 and get the same Audited. This certificate should be submitted to respective regional office with complete break up of the remittances.

The Audited Certificate no.1 should be in agreement with the total amount received by the DICGCI during 01.04.2014 to 31.03.2015.

ii. Cer. 2 – Discontinued

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iii. Cer.3 - SLR Verification:

As per the requirements of RBI, Bank’s Statutory Central Auditors have to verify maintenance of SLR by the Bank on 12 odd dates in the year 2014-2015. Data on Cash & Bank balances, on 12 odd dates selected by our Statutory Central Auditors, should be certified by the Branch Auditors in format Certificate – 3.

iv. Cer. 4 – Lending to Sensitive Sectors:

As per Reserve Bank of India directives, we are required to disclose lending to Sensitive Sectors like Capital Market, Real Estate sector, Specified commodities etc. Data on lending to above Sensitive Sectors should be certified by Branch Auditors in the format Certificate–4. Please note that the exposure does not necessarily mean only outstanding. As per RBI guidelines, exposure means outstanding amount or limits sanctioned whichever is higher and accordingly amount should be filled in the Certificate. The figures for the certificate be obtained from ASCROM by generating following report:

Exposure to sensitive sector _ Certificate

While feeding the data in ASCROM please note to follow the latest guidelines of Domestic Real Estate Exposure Policy – 2014 issued by Wholesale Banking Department vide Circular No. BCC:BR:106:138 dated 10.04.2014.

Branches are required to reconcile the amount of CRE exposure reported in Cert. 4 with CRE exposure reported under master summary of Risk weighted Assets.

v. Cer.5 – Implementation of Ghosh Committee Recommendations

Certificate of compliance/implementation of Ghosh Committee Recommendations is to be obtained from the Branch Auditors as per format – Certificate-5

vi. Cer.6 - Implementation of Jilani Committee Recommendations:

Certificate of compliance / implementation of Jilani Committee Recommendations to be obtained from the Branch Auditors as per format – Certificate-6.

Vvii Cer.7 - Movement Chart of Gross NPAs.

A statement showing Movement Chart of Gross NPAs, as per format – Certificate-7, should be prepared and same to be certified by the Branch Auditors. Necessary guidelines for the same will be issued by our ASCROM Cell, BCC, Mumbai.

viii Cer.8 - Information in respect of Restructuring of advances accounts as on 31st

March 2015.

Information in respect of the above should be certified by the Branch Auditors as per format Certificate-8 alongwith its Annexurs I (A) to I (R) and disclosure as per certificate 8 (A). The guidelines issued by Credit Monitoring, Baroda Corporate Centre, Mumbai should be complied with.

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ix Cer.9 – Subvention claim for Interest Relief for providing short term credit to

farmers @7% for Kharif and Rabi (Certificate-9).

Information in respect of above should be certified by Branch Auditor and /or ZIC Inspectors as per Certificate- 9. The guidelines issued by Rural & Agriculture Department at BCC should be complied with.

x. Cer.10 - Subvention claim for Interest Relief for providing short term credit to

farmers @7% for crop loan.

The branches should submit 2.00 % interest subvention claims duly audited, for the loans disbursed during 01.04.2013 to 31.03.2014 but continued beyond 31.03.2014 upto due date or 12 months from the date of disbursement which ever is earlier. Please note that these claims are to be submitted for such period beyond 31.03.2014 only. Information in respect of Certificate No.10 should be certified by Branch Auditors/ ZIC Inspector.

xi Cer.11 - Claim relating to interest Subvention in respect of rupee export credit by Indian Branches - Discontinued.

xii Cer.12 – Claim for additional 3.00% Incentive for timely payment of short-term crop loan to farmers disbursed in 2013-14 and loan repaid on or before due date.

The Branches /Regions should prepare their full consolidated claims of 3.00% Incentive

paid to farmers, for the loans disbursed during 01.04.2013 to 31.03.2014 and the loans repaid on or before due dates. However total claim period should not exceed 12 months for any account from its disbursement date.

xiii Cer.13 – Discontinued

xiv Cer.14 (a) & (b)- Scheme of 1% Interest Subvention to Housing Loans. (For amount of subvention received during the FY 2014-15)

xv Cer. 15- Certificate by Auditors in respect of Education Loan Interest subsidy Scheme (ELIS) (For claims submitted during the FY 2014-15) (15 A & 15 B)

xvi Cer. 16 - Discontinued

xvii Cer. 17 - Discontinued

xviii Cer. 18 - Claim for Interest Subvention for lending to Women SHG’s for the credit upto 3 Lacs (for the year 2014-15)

xix Cer. 19 - Claim for Additional Interest Subvention for prompt payment to eligible WSHG from

01.04.2014 to 31.03.2015 xx Cer. 20 - Certificate under the Credit Linked Capital Subsidy Scheme (CLCSS) for the year

2014-15 xxi Cer. 21 - Certificate of remittance of recoveries made under CGTMSE Claim settled accounts

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We reiterate that all the certificates should be prepared with due accuracy and kept ready along with background papers so that it does not delay the audit of the branch.

E: Taxation related closing activities

Branches are advised to ensure that guidelines in this regard issued from time to time are followed scrupulously. In past, numerous irregularities have been observed in Tax Audit Report. It has also been experienced that there are many wrong reporting in Tax Audit Report. Please note carefully that primarily it is the responsibility of the branches to ensure the accuracy in finalisation of Tax Audit Report. We give here below some of the important guidelines/observation in this regard:

1. Tax Audit Report

· Annexure – 1 Payments to Clubs: - Club means as per Income Tax Act are where the facilities of entertainment are available and persons can visit as and when they wish to visit the same. Hence, Branches have to ensure that the clubs like Lions Club, Rotary Club, Giants Club, Jaycees Club, Bankers Club etc. where no entertainment is done but only the activities for the common public are conducted, the subscription to such clubs will be allowed as deductions in income tax and therefore need not be reported in this statement.

· Annexure – 2A:- In this annexure, only the incremental Provision made for taxes/duties payable by branches itself to Municipal Corporation / Central /State Government pertaining to FY 14-15 should be reported. Branch should not report tax outstanding towards service tax, TDS etc. in this annexure Branches who have made provisions for taxes / duties which are under litigation and accounted in the branch books prior to 1 April 2014 and carried forward in the books should not be disclosed in this annexure. Similarly, provisions made in the earlier year which have been reversed at the beginning of FY 14-15 and re-provided in March 2015 should not be reported in this annexure.

· Annexure – 2B:- Interest payable to Public Financial Institutions such as NABARD, SIDBI, IFCI, IDBI, LIC and UTI or a State Financial Corporation or State Industrial Investment Corporation provided and remaining unpaid on 31.03.2015 should only be reported. The provisions are allowed as expenditure if the same is paid. Please send a copy of proof of payment made after 31.03.2015.

· Annexure – 3(1):- Branches / Offices should ensure that full TDS as applicable is deducted and deposited well in time. For this purpose immediately refer our circular no. BCC:BR:106/405 dated 08/10/2014 on TDS – Other than Salary and verify whether any compliance is pending for the months from April 2014 to till date. If there are non compliance, immediately deduct and deposit the same.

· Annexure- 3(2)- Cases where TDS has been deducted by the Branches but not deposited has to be reported in this Annexure. Until FY 2013-14 such cases were reported in Annexure 3(4). Branches should deposit TDS promptly as non deposit of TDS attracts penalty and interest. In case of TDS which has been deducted on payment of expenses

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(other than salary) during the month of March 2015, the due date for depositing TDS is 30th April 2015. Therefore, branches need not report such cases in this annexure.

· Annexure – 3(3) :- The Income Tax Department has introduced new format. In this annexure branch has to submit the detail of section wise Tax deducted and deposited on various payments made by them during the year. The Branches should keep the same ready for three quarters and figures of the last quarter can be added to submit the correct information.

· Annexure – 3(4):- Detail of delay in filing of quarterly e-tds return during the year ended 31-03-2015 has to be reported in this annexure. Branch has to ensure that quarterly e-tds return is filed on time as per schedule mentioned in circular no.BCC:BR:106/405 dated 08-10-2014. If there is delay in submission for any quarter, report the same in this annexure.

· Annexure – 3(5):- Interest is being levied by Income Tax Department for non deduction/short deduction and delay in deposit of TDS. They raise a demand for the same after processing the quarterly e-tds return filed by the Branch and issue demand notice for the same. Branches has to submit the details of interest paid under Sec 201(1A) i.e interest on non deduction/short deduction of TDS and delay in deposit of TDS in this annexure.

· Annexure 4 – As per the revised tax audit format, our Bank is required to provide the details of demand raised and refunds received in case of tax, other than Income Tax and Service Tax such as Value Added Tax (VAT) and Municipal Taxes paid by the branches/offices in your Zone.

It was observed that in a number of cases a substantial amount of tax deducted was not deposited to the government’s account which was a matter of concern. Please note carefully that, late deposit i.e. tax deducted but not deposited in prescribed time as per guidelines / circulars should not be reported at all in any of the Annexure 3 (i) to 3(v) and annexure 4. In other words, such late deposits should not be reported in the annexure. Branches may note that if subsequent payments of TDS (pertaining to FY 2014-15) made are not reported in above annexure 3 (i) to 3(iv), the same cannot be claimed by us in income tax return which is a loss to the Bank. Please therefore ensure that particulars of all payments made after 31.03.2015 are mentioned in said annexure. In spite of our clear guidelines many branches are reporting matters that are not required to be reported at all. Please go through the guidelines carefully and report only transactions that need to be reported in the Tax Audit Report.

Consolidation of Tax Audit Report at Regional/ Zonal Level :-

Regional Office will consolidate Annexures 1; 2A; 2B, 3(i), 3(ii), 3(iii), 3(iv) of the Tax Audit Report of the units in MS - Excel software as per the format provided with circular No.BCC:BR:107/96 dated 28-02-2015.(Soft copy of the annexures has already been emailed to Zonal/Regional Offices). Printed / hard copy of the consolidated return along-with consolidated Annexures should be got audited from Statutory Central Auditors as usual. Soft copy (email) as well as the hard copy should be sent to the respective Zonal Office. Zonal Office in turn will consolidate the Tax Audit Return and add its Annexures received from Regional Offices and consolidated Tax Audit Return along-with all its Annexures duly audited

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by their Statutory Central Auditors should be submitted to Corporate Accounts & Taxation Deptt., BCC, Mumbai along-with soft copy of return. At Regional / Zonal level all the Annexures should be scrutinized thoroughly and if there is discrepancy in the statement submitted by the branches, it may be rectified in consultation with SCAs and seeking clarification.

2. Service Tax:

As per Finance Bill 2012, there have been some important amendments in the Service Tax guidelines. The scope of payment of service tax under reverse charge mechanism has been enhanced substantially. In Reverse Charge Mechanism service tax is to be paid by the recipients of the service to the Government as against normal method, where the Service Tax is paid by the Service Provider to Government. The Master Circular BCC:BR: 104/296 dt.17.08.2012 has been issued, giving details of the revised/amended guidelines. During the Financial Year 2013-14, the following circulars with revised guidelines were issued: 1. BCC:BR:105/2013-14/147 dt.08.04.2013 on Service Tax on Services from Government,

Commission earned in Foreign currency on Guarantees/LCs.

2. BCC:BR:105/2013-14/248 dt.19.06.2013 – Change in Accounting Procedure of payment of SERVICE TAX and Excise Duty/Countervailing Duty on purchase of Computer Hardware and Software and ATMs.

3. BCC:BR:2013-14/105/315 dt.29.07.2013 – Revised Accounting Guidelines of Service Tax (Accounting 50% of Service Tax to the Profit & Loss A/c in the Books of Branches/Administrative Offices).

All Branches/Offices are requested to be guided by the above Circulars and ensure strict compliance and correctness of data fed into the SERPAY Menu and the accounting entries posted in Finacle System.

F. Statutory Branch Audit

1. Pre-Audit: -

All Branches/Offices in India and abroad are requested to commence necessary advance preparations for closure of books for the year ending on 31st March 2015, well in advance. The Branches, which are under audit for the year 2014-2015, will be advised by the respective Zonal/Regional Offices to be in readiness for Annual Audit and to make all advance preparations for audit at their end. You are requested to ensure that all the information, explanation to the queries of Auditors is promptly attended to by you and that there is no cause of complaint or delay in finalizing the Branch Audit. Brief Guidelines for branches under Audit are as per Annexure-V attached.

2. Completion of Audit: -

Even at the cost of repetition we would like to state that branch audit must be completed by the given due date and this can be achieved easily provided our records are handy and

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updated and due co-operation is extended to auditors. In our opinion, the following records are essentially be kept ready.

a. Closing circulars under reference.

b. Set of Closing Returns to be verified by the branch auditors including branch responses to the questionnaires relating to LFAR, Tax Audit Report and various certificates.

c. Closing returns of the previous year ended 31.3.2014 with name of previous

auditors, L.F.A.R., Audit Report etc. along-with compliance thereof.

d. Latest inspection/concurrent audit report and compliance thereof.

e. Significant Accounting Policies of the Bank. f. Print copy of General Ledger and Profit & Loss account.

g List of Accounts for which Provisioning is considered/made at Corporate Level as

per Annexure IX and branches are not required to make any provision.

h. Stock audit report, stock inspection report, Advance value register, insurance register and latest review notes.

G. Mailing Instructions/ Submission of Audited/ Unaudited closing returns &

certificates. Our Bank has set time schedule for completion of audit at each level. Accordingly, Audit, at the branches, has to be completed latest by 9th April 2015. At the cost of repetition we state that the branches should contact the respective Audit Firms during March 2014 itself, and discuss the audit plan/ branch profile. To enable the Statutory Branch Auditors to complete the audit by the stipulated date, the Branches are advised to keep all the relevant records, information & Closing Returns (including ASCROM) ready by 2nd April 2015, positively. Branches should generate and keep ready the returns generated through Clorets Package. Branches have to submit audited Closing Returns / Certificates to their respective Regional Offices, as under:

(a) Closing Returns: -

Sr. No.

Category of the Returns

Closing Return No.

Contents

(i) Relating to Balance Sheet

1 Balance Sheet (Form No.-154)

3 Break-up of IBC/OBC

4 Details of Claims against the Bank not acknowledged as Debt

6A & 6B Break-up of Furniture & Fittings & Depreciation there on

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7 Outstanding balances and Doubtful amounts (other than Advances/Suspense requiring provision)

8 Break-up of outstanding entries in Suspense Account

13 Capital Adequacy (Basel-I) Returns generated through ASCROM

- Basel – II Returns generated through ASCROM System Basel – III -Applicable to Treasury office and Overseas branches.

(ii) Relating to Profit/Loss (All Profit & Loss Returns should be Prepared for the full year)

2 Profit & Loss Account (Form No.-249)

11

Statement of Bad & Doubtful debts Written Off to the debit of P/L account

Annex-VI

Inter Branch Forex Transaction by PMOs / Overseas Branches / Overseas Subsidiaries (Not to be certified by Auditors)

(iii) Advances related statements

15 Borrower wise Standard Advances

16 Borrower wise Sub-Standard Advances

17 Borrower wise Doubtful Advances

18 Borrower wise Loss Advances

19 Master Summary of Advances

20 Sectoral Classification of Advances (It may please be noted that Returns (15 to 20) are generated from ASCROM system, and hence, printed forms are not required)

(iv) Memorandum of changes

14 Memorandum of changes (other than Advances)

14D Memorandum of changes in classification of advances and provisioning

(v) Additional Disclosure in Balance Sheet

22 Maturity Pattern of various Liabilities & Assets · Statement for Deposits will be generated

at Corporate Level. · Branches are required to prepare the

data for Advances and Borrowings (to be certified by the Branch Auditor)

(vi) Miscellaneous Returns

9 Additional Information/Certificate (Not to be certified by Auditors)

21 Statement of outstanding Total Deposits & Advances at Rural Branches

-- Tax Audit Returns (Audited)

-- Data on Country Risk Exposure.

-- Reconciliation of ASCROM & Balance Sheet figures

-- Working of provision for Unhedged Foreign Currency Exposure (Annexure-XV) (Audited)

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(b) Certificates: -

Certific

ate No.

Particulars

1 Certificate on remittance to DICGCI

2 Discontinued

3 Statement of Cash & Bank Balance as on 12 odd dates

4 Certificate on exposure to Sensitive sectors

5 Certificate on Ghosh Committee recommendations

6 Certificate on Jilani Committee recommendations

7 Movement Chart of Gross NPA

8 & 8(A) Certificate on restructured accounts

9 Certificate on subvention claim for interest relief 2014-15

10 Certificate on subvention claim for interest relief 2014-15

11 Discontinued

12 Certificate on incentive for timely repayment of short term crop loan

13 Discontinued

14(a) & (b)

Scheme of 1% Interest Subvention to Housing Loans. (For amount of subvention received during the FY 2014-15)

15 (a) & (b)

Certificate by Auditors in respect of Education Loan Interest subsidy Scheme -(ELIS) (For claims submitted during the FY 2014-15)

16 & 17 Discontinued

18 Claim for Interest Subvention for lending to Women SHG’s for the credit upto 3 Lacs(for the year 2014-15)

19 Claim for Additional Interest Subvention for the prompt payment for eligible WSHG from 01.04.2014 to 31.03.2015

20 Certificate under the Credit Linked Capital Subsidy Scheme (CLCSS) for the year 2014-15

21 Certificate of remittance of recoveries made under CGTMSE Claim settled accounts

All the Closing Returns and Certificates should be got certified from the Branch Auditors, except the Closing return No. 9 and Annexure-VI (Break up of Forex items in P& L Account). (c) TIME SCHEDULE The branches should strictly observe the time schedule mentioned in ANNEXURE-VIII of this circular. In view of the globalization of economy, era of information technology, implementation of various accounting standards by ICAI, which are required to be adopted by Bank, and SEBI guidelines on Listing of our shares, the audit of annual accounts and publishing thereof well in time, have assumed greater importance. Each one of us is, therefore, required to adopt professional approach in completion of this time bound exercise, without compromising the quality.

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We request you to keep important Circulars on Closing properly secured and easily retrievable, to implement all Closing guidelines and procedures, and to clarify doubts relating thereto, as and when required. Branches are further advised that contents of this circular be brought to the knowledge of each staff member so as to get desired work done from him/her in the ensuing closing. The Branch Managers are requested to pay personal attention to the annual Closing work supported by his/her full team. We request you to strictly adhere to the time Schedule for submission of all returns/certificates. For any clarification in this regard, you may refer to Corporate Accounts & Taxation Department at BCC, Bandra (E), Mumbai through your Regional / Zonal Authority.

Yours faithfully,

(U C Singhvi)

General Manager (Corp. A/cs, Taxation ) and CFO Encl.: 1. Annexure I to XV 2. Certificates 1 to 21

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Corporate Accounts & Taxation Department, 2nd Floor, Baroda Corporate Centre, C-26, G Block Bandra Kurla Complex

Bandra (E), MUMBAI 400 051 Tel : 022 – 66985288, 66985280 Fax (022) 26526890 email id : [email protected]

1

Annexure-I Important Check Points for closing of books on 31st March 2015. 1. Ensure latest version of CLORETS is used for generation of closing returns. 2. Negative balances of GL and PL have been rectified/ verified.

3. GL HO interest receivable is tallying with PL HO interest earned (Subsidies).

4. PWO collection account finacle code no.63001001 and PWO receivable account finacle

code no.73001001 are tallied.

5. Return no.4 has been prepared in advance and ensure that amount reported under Ret. No.4 is tallying with finacle code 61001001 and 71001001.

6. Provision for all the expenses due but not paid has been made and all the accrued income

has been booked specially entry for prepaid expenses has been passed.

7. Special debit account is scrutinized and there is no out standing entry of high value amount.

8. GL Suspense account Law charges finacle code no 26501006 is nil.

9. GL Stationery finacle code no.26301001 is NIL for branches.

10. GL inter branch bills purchased account finacle code 31101001 is NIL.

11. In all sensitive accounts, which are reported in return no.7, the outstanding amount above 3 years, 2years (NOSTRO accounts) and 6 months (LMO/LBO accounts) has been worked out correctly.

12. Ensure that MOC 14 has also been prepared for the un serviced interest, if any account is

degraded during the course of audit and reported in 14 D.

13. Branches to mark ‘87’ in special category code in ASCROM against all fraud related advance accounts.

14. All the certificates have been prepared and relevant details / information is available for

verification by auditors.

15. All the information relating to LFAR is arranged.

16. All the important records viz. last inspection report, insurance register, valuation report, last year’s audited closing returns, sanction files, security documents, mortgage register etc. are readily available.

17. Branches which are opened on last working day of the financial year i.e. 31st March also

incurs some expenses, ensure that these expenses are also booked in current financial year in branch books.

ANNEXURE - II

(Rs. in lacs)

Sr.

No.Discription Dec.14 Mar.15

1 Total Advances2 Total Deposit3 CASA Deposit4 Bulk Deposit5 Yield on Advances6 Cost of Deposit 7 Incidental Charges8 Recovery in Bad & Doubtful debts9 Other Misc. income

10 Rent, Taxes & lighting11 Printing & Stationary12 Advertisement & Publicity13 Sundry charges14 Postage, telegram & Telephone15 Repairs & Maintainance16 Other expenditure 17 Other items, if any

Comments on major variances :- 1

2

3

Date : (Signature of Zonal Head)

VARIANCE ANALYSIS SHEET AS ON 31.03.2015

Zone name :

( Amount of quarter only should be reported.)

Please note to provide G/L figures as on 31.12.14 and 31.03.15 and Profit & Loss figures

for the quarter ended 31.12.14 & 31.03.15

ANNEXURE – III

New G/L and P/L Codes given during year ended March 2015

Assets Side

Code No.

Head Finacle Code

For use at

2541 Block of it assets (Non- Hardware) 25101037 ALL BRANCHES

2790 Suspense A/c CounterFeit Notes 26501084 ALL BRANCHES

2895 Gl Suspense 2014-15- Khariff Rabi 2% Interest Subvention to Farmers

26501085 ALL BRANCHES

2896 Gl Suspense 2014-15- 3% Incentive for prompt repayment to farmers


2790 Suspense unclaimed deposit – claims 26501087 BKC BRANCH

2790 Unclaimed Deposit Settlement A/c 26501088 BKC BRANCH

2010 Centralised Cash in BNA A/C 21101036 COLABA BRANCH

2897 BNA NFS Receivable A/c 26551060 COLABA BRANCH

2897 BNA VISA Receivable A/c 26551061 COLABA BRANCH

2897 BNA Master Card Receivable A/c 26551062 COLABA BRANCH

2898 Other assets- AEPS_OFFUS Receivable 26551063 BKC BRANCH

Expenditure Side

Code No.

Head Finacle Code

For use at

1640 Subvention Amount Paid To BOB Cards-POS 54511069 ALL BRANCHES

1736 Write Off- Counterfeit Notes. 54531035 ALL BRANCHES

1738 Provision for write off of investment 54541021 TREASURY

1685 Corporate Social Responsibility 54531036 BCC

1640 Penalty by Consumer forum / Ombudsman / Other courts.


1640 Penalty imposed by Regulatory Authority except RBI, but including FEMA.


1640 Penalty imposed by RBI, for breach of regulations other than FEMA regulations


1610 Op. Risk Related Repair & Maintenance of Furniture and Fixtures / Bank’s Premises

(Rented/Owned)


1736 Write off of Furniture & Fixture/ Building & Structure


1720 Op. Risk Related P/L (Advances Accts Written off on Account of Operational Risk.)


1736 Loss to the bank (Actual or Provision) on account of Internal / External Frauds.


1693 Loss of cash. 54531041 ALL BRANCHES

1199 Compensation awarded to staff by court. 52451026 ALL BRANCHES

1060 Commission / Fees Paid to Recovery Agents 52201007 ALL BRANCHES

1029 Interest Paid on MTN Tier-II Bond series- I (Overseas)

12106001 INTERNATIONAL OPERATIONS

1640 Misc Expenditure - PMJDY 54511073 ALL BRANCHES

Liabilities Side

Code No.

Head Finacle Code

For use at

4120 Unclaimed Deposit pool A/c 13246003 BKC BRANCH

4869 Centralized Pool A/c- Other credit items non intt Bearing

15181399 BKC BRANCH

4584 Cash in bna pool a/c 31101154 ALL BRANCHES

4966 Funds for promotion of visa affiliated Debit cards

15181402 BKC BRANCH

4966 Funds for promotion of Mastercard affiliated Debit cards

15181403 BKC BRANCH

4915 Bill Desk utility Bill payment pool A/c 15181404 CFS BARODA

4900 Collection of Mizoram State Taxes 15181401 GAUHATI MAIN

4916 Premium on Sub- bonds borrowings 54273216 INTL. OPERATIONS

4966 Chhotabhai Jetha bhai Div. Payment – 13-14 15181405 Nadiad Main

4917 Other Liabilities- AEPS_OFFUS Payable 15181406 BKC BRANCH

4970 Collection A/c MP Cyber Treasury 15181408 TT NAGAR BRANCH

4970 Collection A/c - DIPP 15181407 Nirman Bhavan

4590 NEFT Inward transactions ac no 2 31101155 FORTAP







4321 Subordinate perpetual Tier-1 Basel III Series V Bonds

14201013 HOCORP

Income Side

Code No.

Head Finacle Code

For use at

3261 Sitting fees received from subsidiaries for nominee directors

42701066 BCC

ASCROM UPDATION GUIDELINES - FOR ANNUAL CLOSING – AS ON 31.03.2015

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ANNEXURE IV

ASCROM System ASCROM system is being used for asset classification as per comprehensive guidelines of RBI on Prudential Norms on Income Recognition and Asset Classification for advances, calculation of capital charge on credit risk as per BASEL II requirements, submission of CIBIL data and generation of various reports for financial reporting and regulatory compliance. As in the past several years, Closing Returns of Advances (Closing Returns 15 to 20) generated from ASCROM system are subjected to Audit at Branch / RO / ZO / BCC. BASEL II returns i.e. Master Summary of Risk Weighted Assets and BASEL I Returns ( in place of earlier Closing Return No: 13) i.e., Risk Weight Assets Exposure- Section A and Risk Weight Exposure – Section B are subject to Audit. Our Bank at all levels has been relying heavily on ASCROM data, for various Policy decisions / MIS requirements. This data is being furnished to RBI for Risk Based Supervision / DSB / RAQ returns etc., as part of Regulatory requirements. Any deviation / error in ASCROM data shall have serious implications, inclusive of attracting penal provisions by Regulators. Instances of variation in Finacle and ASCROM data specifically the repayment schedule etc has been observed by the Statutory Auditors and in Risk Based Supervision Audit carried out by RBI. Process of migration of the existing ASCROM to CENTRALIZED ASCROM System, is in advanced stage and the same shall be implemented in all the Branches / Regions / Zones and BCC, during the quarter April – June 2015. It is envisaged the entire data for ASCROM updation, is proposed to be extracted from FINACLE directly, without any manual intervention, in the proposed Centralized ASCROM System. Asset classification, Provisioning, Basel II RWA computations as per RBI guidelines shall be carried out in the Centralized ASCROM System and the Advances Closing Returns, other Report shall be generated at all the levels, for Audit. In view of the above crucial factors, Branches / Regional / Zonal authorities have to take utmost care with regard to the accuracy in updation of ASCROM data, so as to ensure accuracy in Asset Classification & Provision, computation of Capital Charge on Credit Risk, submission of 100% records of CIBIL data and also all other data relating to Credit / NPA / Priority Sector, for the Annual Audit as on 31.03.2015. GUIDELINES FOR UPDATION OF DATA THROUGH ASCROM SYSTEM: The following are the broad guidelines for accurate data updation by Branches so as to ensure correct and accurate data submission to RO / ZO / BCC. Branches have to exercise utmost care in updating the relevant fields in ASCROM data. Key parameters to be carefully verified are as under: FORMAT A – Customer Details:

1. PARENT BRANCH ALPHA CODE & Customer Id in respect of Parked advances.

Parent Branches should invariably furnish the details of – Customer Id, Proportionate Realisable Value of Security allocated, Last Date of Review & Next Date of Review, Asset Classification, Proportionate Drawing power allocated, Investment in Plant & Machinery/Equipment, Average Sales Turnover of last/next 3 years, Date of Commencement of Business, Date of Valuation of Fixed Assets, External Rating if any, to the PARKED BRANCH.


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2. REALISABLE VALUE OF SECURITY:

Ø Aggregate value of all realisable Securities (Primary & Collateral) of borrower is to be

recorded. Ø Realisable Value should be computed considering the LATEST VALUE OF PRIMARY

& COLLATERAL SECURITIES available in respect of various facilities of a borrower. Ø In case of Pari-passu Charge on the Securities, proportionate RV should be

considered. Ø In case of Second Charge on securities, the residual value of security, after reducing

the liability of First Charge holder, should be considered. In the event of non-availability of residual value, the security value of such security should be considered as NIL.

Ø In case of NPA accounts, the value of Stocks / Book-Debts should be considered on a realistic manner / as per latest Stock Audit Report, as part of aggregate value of security.

Ø Detailed worksheet on computation of Realisable Value of Security, including Date of valuation of Securities should be prepared, in respect of Borrowers with limits of Rs. 25.00 Lacs & above, inclusive of NPA borrowers, for verification by Auditors.

Ø The valuation Reports / Stocks / Book-Debts Statements duly certified by Auditors/

Stock Audit Reports wherever applicable should be kept on record. Ø This value of security should be updated in ASCROM data. All the changes in value of

security should be incorporated in ASCROM data during relevant monthly / quarterly updations.

Ø In respect of Government Guaranteed Accounts / Guaranteed by Other Institutions / Banks, amount of Guarantee and Expiry date of Guarantee should be updated in Customer Details, through Special Category codes.

Ø If the Government Guarantees are not renewed on or before the Expiry dates, the

existing date and amount of Government Guarantee along with Special category codes as applicable, should be deleted during the data updation as on 31.03.2015.

Ø It is observed that there has been wide variance in the Realizable Value of Security mentioned in the Status notes on NPAs by Branches / RO /ZO for Annual Audit and the Value of Security mentioned in ASCROM system, leading to adverse remarks by SCAs / RBI AFIR team .

Ø Branches / Regional / Zonal authorities are advised to note this aspect carefully and

update Value of Securities with proper computations / workings. Any deviation observed in this aspect shall be viewed seriously and dealt with accordingly.

3. ESTRUCTURING DETAILS: Codes for Restructure are synchronized and only the

following -3- codes are available in respect of new Restructured accounts: Restructured Accounts Code

Description of the Code

72 Restructured account – Due to Natural Calamity 74 Restructured – Others 92 Restructured Account – under CDR


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Branches are advised, to assign the applicable code as above, to Advances accounts, where in Restructuring is approved by the Competent Authority, along with Date of Restructuring / Date of Reference / Approval in case of CDR accounts and other Category of Restructuring.

There has been wide variance in the data of Restructured Accounts, submitted by branches through Quarterly Certificate on Restructured Accounts, to RO / ZO / Credit Monitoring Department BCC and Accounts with Restructured Accounts code in ASCROM. This has been adversely commented by RBI and Statutory Auditors.

In case of Accounts which have been re-phased / rescheduled, as per the request of the Borrowers also, Branches have to assign Rephasement code ( No: 15), Date of rephasement in Account Details, including WCTL accounts and incorporate Restructuring Code ( No: 72/ 74/ 92), Date of Restructuring in Customer Details, which is mandatory. Regions should verify at their level that the branches have given this code to all the accounts restructured under Restructuring including CDR, before sending the data to ASCROM Cell BCC. Aggregate Amount of Interest Sacrifice, in all Restructured accounts (both CDR & Non CDR), computed upto 31.03.2015, as per the extant guidelines, and should be incorporated correctly in the field of Sacrifice Amount.

AUDITORS, in order to certify the Data on RESTRUCTURED ACCOUNTS ALONGWITH DETAILS OF PROVISION FOR INTEREST SACRIFICE shall verify this information generated through ASCROM system.

4. PROJECTS UNDER IMPLEMENTATION: Branches have to assign SPECIAL CATEGORY

CODES 46 /47 /48 /49 to only such Borrowal Accounts which are treated as PROJECTS UNDER IMPLEMENTATION strictly as per RBI norms. The norms relating to Projects under Implementation as advised by RBI are summarised as under:

Category I: Projects where financial closure has been achieved and formally documented (Special Category code 46) Category II: Projects sanctioned before 1997 with original Project cost of Rs.100 Crore or more where financial closure was not formally documented (Special Category Code 47) Category III: Projects sanctioned before 1997 with original Project Cost of less than Rs.100 Crore, where financial closure was not formally documented. (Special Category Code 48) Category IV: New Projects under implementation. (Special Category Code 49)

In all the above categories, completion date has to be incorporated since, Asset Classification in these accounts are governed by the date of completion of project. Branches are advised to incorporate Special Category Codes carefully in view of the specific norms as stated above.

Branches are advised to incorporate applicable code of Restructuring ( 72/74/92) in the field of Special Category, in Customer details, wherein there has been an extension of COD Date. This shall have to be verified by Regional Office, before submission to the Statutory Central Auditors.

5. CREDIT RATING: Branches / RO / ZO are advised to carefully ensure compliance of instructions on incorporating Credit Rating details in ASCROM data for March 2015 updation as under:


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Ø All Accounts (Except Staff, LABOD & Exclusive Retail Loans) with aggregate Limits (Fund

Based and Non-Fund Based Limits) of Rs. 25 Lac and above, should be provided with CRISIL Rating Details.

Ø Accordingly Branches have to incorporate the Details of CRISIL Rating like Reference No.,

Model, Industry & assigned Rating of the above category Borrowers in CRISIL Rating Data, Data Entry Screens provided in Quarterly Updation>Quarterly Data Updation>Customer Details>Format A>Customer ID Profile.

Ø In respect of the Borrowers whose Credit Rating is not finalized/Validated as per the

CRISIL Rating Models, Branches are advised to Select ‘N.R.’ in CRISIL Rating Data and then give Credit Rating Score as per existing old Rating Module.

Branches are advised to incorporate the Credit Score of the remaining category of Advances, as per the applicable Rating model, in Borrower Profile as in the past.

EXTERNAL RATING UPDATION IN ASCROM:

Branches are advised to update the External Rating details in respect of eligible Borrowal Accounts as on 31.03.2015, as per the guidelines advised by our Risk Management Department per Circular No: BCC: BR: 104: 433 dt: 05.12.2012.

Branches have been advised detailed procedure for updating External Rating details in Customer / Account details in ASCROM Data, vide the Circular cited above.

Following Validations through Critical Errors are enabled in ASCROM System, relating to expiry and updating of External Rating details as well as CRISIL Rating details :

Critical

Error No Nature of Error Error Rectification

34 External Rating Date in Customer Details expired

Latest External Rating details to be upated through menu option – Basel II ->Cust/Guarantee Rating -> Borrower wise details to be updated

75 External Rating Date in Account Details – expired

Latest External Rating details to be upated through menu option – Basel II ->Short Term / Long Term Rating -> Account ID wise details of External Rating of the Borrower to be updated

31 CRISIL Rating date – Expired Latest CRISIL Rating details to be updated in Customer Details.

The above Critical Errors have to be rectified by Branches mandatorily, before Data processing. Branches having Advance Accounts, wherein Annual External Rating is mandatory, have to update in ASCROM Data, the External Rating details as on 31.03.2015 at Account level only as per the Rating Certificate downloaded from the Rating Agency website preferably or submitted by the Borrower. Further Branches have to update the Latest CRISIL Rating Details, in Customer profile, of ASCROM Data, as on 31.03.2015, through uploading of the latest Zonewise Text files of CRISIL Rating data available in our Bank’s Intranet. Any incorrect data updation by branches in this regards, shall be viewed seriously by our Higher Authorities.


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6. SUIT-FILED SUNDRY DEPOSIT AMOUNT – This Amount is to be updated through Quarterly Updation>Quarterly Data Updation>Customer Details>Format A>Customer Advance Profile (second tab)>Additional Information (Available only for NPA Customers), since this amount is considered for Provision computation.

7. OTHER INFORMATION : Whether in wilful defaulter’s list of RBI; and whether Sick SSI

unit, if so date of sickness fields are to be updated on a regular basis. Branches have to mark the field- Viable Sick Unit ‘Y/N’ correctly, strictly as per the Viability status of the SICK Industrial Account, in the Customer Profile.

8. NPA STATUS CODES – SUITFILED/ DRT / BIFR / COMPROMISE ACCOUNTS

SPECIAL CATEGORY CODE FOR FRAUD RELATED ADVANCE ACCOUNTS : Branches have to update the NPA Status These details are to be furnished / updated accurately. In respect of BIFR / NON BIFR Rehabilitation Status codes, additional details of Amount of Right of Recompense should also be updated. FRAUD RELATED ADVANCES & FMC NUMBER: Branches have to ensure that marking Special Category Code ( 87) in respect of Advances treated as Fraud, is done in ASCROM DATA of December 2014, along with FMC Number. A new field for capturing FMC number in case of Fraud Accounts (Special category marked as 87) is provided under additional information. Branches to update FMC numbers for all Advances related fraud accounts. (8 digit numeric - first 2 for year, next 2 for quarter & next 4 serial number as allotted by FMC department).

9. INVESTMENT IN PLANT & MACHINERY: This field should be updated with the original Investment in Plant & Machinery (gross block as per Balance sheet) in respect of all manufacturing units.

10. INVESTMENT IN EQUIPMENTS: This field should be updated with the original Investment

in equipments in respect of all Service Industry Accounts. 11. TURNOVER : Sales turnover as per the Basel II requirement i.e. annual turnover of the

last three years for existing entities; projected turnover in the case of new entities; and both actual and projected turnover for entities which are yet to complete three years is to be furnished in this field for all business concerns. In the fourth box the projected sales turnover accepted for assessing the credit limit is to be fed.

12. TAKE OVER ACCOUNTS:

In ASCROM System, Take over accounts are to be assigned Special Category Code :28/18, in CUSTOMER DETAILS – CUSTOMER ID PROFILE.

In respect of Takeover Accounts, after incorporating Special Category Code – 28, as stated above, Branches have to furnish the following additional details in Customer Account Details – B/C/D Format, as per the facility, which has been taken over from the other Bank/ Other Financial Institution

· Name of the Bank / Financial Institution · Date of Take over

Branches have to update the above details, in respective fields, through Quarterly Data Updation > Customer Accounts > Format B / Format C / Format D as applicable.


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Through F5 option, Name of the Bank is to be selected and Bank Code shall be populated in the field. Date of Takeover should incorporated in the field. UPDATING OF ACCOUNTS: DATA LIFTING OF NEW ACCOUNTS INCLUDING REPAYMENT SCHEDULE : From 01.09.2013, data of all new sanctions/ disbursements, are uploaded directly from CBS, covering -44- additional fields.

To enable this, a new option named “Opening New Accounts from Transaction Data” is provided under Monthly Updation>Data Lifting.

The detailed procedure for Data lifting of New accounts from CBS/ FINACLE to ASCROM is as follows:

· -2- Additional files named - Solid_INWARD.txt and Solid_Schedule.txt

Eg: If SOLID is 2904- then -2- additional files for Datalifting of new sanctions generated in CBS shall be - 2904_INWARD.txt & 2904_SCHEDULE.txt, along with normal STDSTU.enc file from Finacle

· These -3- files viz., Solid_INWARD.txt, Solid_Schedule.txt and STDSTU.enc - should be copied in a folder on desktop or hard disk (e.g. folder named with branch alpha or solid and it should contain these -3- files only).

· If any inward/Sanction/Disbursement is done manually then “Update to main data Base” should be done.

· Run the option of “Opening New Accounts From Transaction Data” under Monthly Updation>Data Lifting (select the folder where you have copied these -3- files and these files though present will not be seen in the folder)

· All available data from FINACLE will be updated in Inward / Sanction / Disbursement tables for all new accounts opened during the current month.

· If some accounts are opened manually, and updated to main database, then such accounts - where map key is same will be excluded.

· In case branches, have not updated to main data base, all accounts opened will be deleted and replaced with the inward file and all corrections will have to be done again.

· Gap Data – viz., Special category, Sanctioning Authority, Credit rating score, Repayment Mode (in case of some accounts), Security etc., has to be updated manually.

· For BKCC accounts no repayment schedule is available in FINACLE, since these accounts are opened as CC accounts. Hence ASCROM system, will update mode of repayment=5 (Bullet repayment); No of installments=1 and installment amount=principal amount and principal amount=disbursed amount. In Disbursement first date of installment to be fed by the branch.

· Sector, Activity, Scheme, Constitution, Religion, Caste codes of ASCROM are mapped with relevant codes of FINACLE, to the maximum possible extent. However there might be


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few Critical errors in INWARD relating to these codes, which branches have to rectify the same, before updating to main data-base.

· CIBIL Data – viz., Name, Address, PAN No, Phone number etc shall be updated in case of all individual accounts, but in case of non individuals same is not available from FINACLE. Data in respect of Joint borrowers or guarantors is not available in finacle hence same has to be updated manually by branches.

· Branches having PC/PCFC have to update the data only through uploading of “INWARD.txt” and STDSTU.enc files, generated from FINACLE. Manual updation of PC/PCFC accounts is not permitted in ASCROM System from the data updation of February 2014.

FORMAT C – CASH CREDIT & OVERDRAFT ACCOUNTS:

· Branches should ensure that DP is computed accurately in case of Credit facilities against Stocks & Book-Debts and is updated in CBS system accurately. This data is uploaded in ASCROM System, from CBS through the Data file. along with other information of CC / OD accounts.

· Excess Date is uploaded from CBS directly. This parameter is essential for proper ASSET CLASSIFICATION. Please note that while arriving at continuos excess date amount outstanding in AB’s along with fund-based facility should be taken into consideration.

· Date of Stock / Book-Debts Statement & Value of Stocks / Book Debts to be incorporated accurately in CBS, since this date along with Value of Stocks / Book debts is uploaded in ASCROM from CBS directly.

· In case of NPA accounts drawing limit should be made ZERO, in CBS, except for those accounts where drawings are permitted with prior sanction of appropriate authority.

FORMAT D – DEMAND LOANS AND TERM LOANS:

· In case of Demand Loans and Term Loans, Repayment Schedule details viz., Principal Amount, mode of repayment (monthly/quarterly/half yearly/Annual/EMI etc.,) No. of Instalments, First Instalment Date should strictly as per the Sanction and the same should match with details in FINACLE in existing as well as new accounts.

· From September 2013, repayment schedule details of all Loan accounts are uploaded directly from CBS, through uploading of data files.

· In case of general Demand / Term Loans, Balance as on 31.12.2014 is meant for Asset Classification and Balance as on 31.03.2015 is meant for POTENTIAL NPA.

· In case of all Direct Agricultural accounts (excluding Agril. Allied activities) Balance as on 31.03.2014, is meant for Asset Classification and Balance as on 30.06.2014, for Potential NPA.

· Recoveries – for Quarters I, II, III, IV are applicable for AGRICULTURE ADVANCES and Recoveries for Quarter IV is applicable for ALL OTHER ACCOUNTS.

· IN RESPECT OF TERM LOANS WITH EMI MODE OF REPAYMENT, CUMULATIVE RECOVERY is recorded in CUMM.REC COLUMN and Recovery in Current Quarter is


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recorded in Quarter IV. Correct figures in these columns will ensure accurate Asset Classification.

· INTEREST TO BE SERVICED DURING MORATORIUM: In Demand Loans / Term Loans, including Housing Loan accounts and excluding Direct Agriculture Term Loans, Educational Loans, where the repayment of EMI/Principal instalment is yet to commence, the interest servicing flag / field – in ASCROM Data – is by default “y”. If the sanction of these accounts stipulates, recovery of interest with instalment, then this field is to be marked ‘N’. During the moratorium, the interest charged in the above category of Loan accounts ( excluding Direct Agriculture Term Loans and Education Loans), has to be recovered as per the sanction terms and if the interest overdues are more than 90 days, then these accounts shall be classified as NPAs.

· DATA OF LAD / LATEST DOCUMENT details have to be updated in CBS from time to

time, so that these dates are uploaded from CBS directly in ASCROM.

FUNDED INTEREST TERM LOAN – DETAILS OF INTEREST CAPITALISATION:

Funded Interest Term Loan ( FITL) in Restructured accounts, represent, unpaid interest on the Term Loan. FITL accounts, form part of Restructured accounts and are required to be opened in ASCROM under GL CODE - 2356 only.

As per the the Circular No: BCC:BR:103:153 dated 03.06.2011, issued by Credit Monitoring Department, BCC., Branches have been advised in respect of new FITL created after 31.03.2011, to create a liability by debiting interest income and crediting “ Sundry Liabilities Account ( Interest Capitalization) Account”

The following are the details relating to data capturing in respect of Interest Capitalization amount and validations for tallying the FITL and Interest Capitalization amount in ASCROM :

· Field “Interest Capitalization” is available for FITL accounts (GL Code 2356) in

Format D->DL details screen. This field is to be updated by branches in all FITL accounts, as per the balances generated from FINACLE, by the branches.

· GL Code for “Interest Capitalization” is 4795 and the GL Figure of this code will be

picked up from Clorets file. · Data processing will not be allowed unless GL is tallied for GL code 4795. (Sundry

Liabilities -Interest Capitalization). The outstanding balance in FITL – 2356 and GL 4795 in each FITL account, should be same.

· Branches have to incorporate FITL balance in the field of Sundry Liabilities – Interest Capitalization – GL Code 4795 – in FITL account details in ASCROM Data.


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Bills Past Due Accounts – Payments made under Bank Guarantees, are opened as loan type in Finacle. Hence in ASCROM also, Bills Past Due – Guarantee Invoked accounts, have to be opened under loan format only.

For this purpose -2- new Sub-GL codes are created in ASCROM GL Code master as under, which are in Loan Format only :

· 22003 (BPD) Payment for Inland Bank Guarantee · 22402 (FBPD) Payment for Foreign Bank Guarantee

Branches have to select any one of the above -2- GL Sub-codes as per the account, in Inward, Sanction details, for new accounts opened during the month. Details of Balance, Limit and recovery during the month shall be uploaded through Data lifting through mapkey. (mapkey as per loan accounts ‘06’)

In case of existing outstanding Bills Past Due accounts, which are in Bills format, should be transferred to these sub GL codes ie.,

· from 22001 & 22002 to 22003 · from 22401 to 22402

so that balance outstanding will be updated through data lifting. In Finacle separate account is opened for each payment made under Bank Guarantees. Hence in ASCROM System also separate account is required to be opened for each payment and map key / CBS account number is to be incorporated in each account for updating the details through Data lifting. VALIDATIONS FOR BASEL-II 1) Claims on Domestic Sovereigns

· Central Government guaranteed claims would attract a zero risk weight. – Identified by Special Category Code 22 or 23. New fields have been provided to feed the amount guaranteed and the expiry date.

· State Government guaranteed claims would attract a 20 % risk weight. Identified by

Special Category Code 20 or 21. New fields have been provided to feed the amount guaranteed and the expiry date.

· Outstanding covered by DICGC /CGTMSE will attract 20% risk weight. - Identified by

Amount entered as DICGC/ CGTMSE Cover available.

· Outstanding covered by ECGC will attract a 20 % risk weight. - Identified by Amount entered as ECGC Received / Cover available for the accounts with Sub Facilities related to Export Finance. In NPA accounts branches to feed the amount received/ receivable. For Standard accounts the system computes the same automatically.

2) Claims on Foreign Sovereigns

· Identified by Constitution code ‘59’ and as per the Rating of County and /or International

Rating of Customer RW is assigned. Higher of RW assigned to Country and/or International Rating of Customer is considered.


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· Country and /or International rating of Customer is entered through Basel II / Foreign Exposure Menu Option.

· Claims denominated in domestic currency of the foreign sovereign met out of the resources in the same currency raised in the jurisdiction of that sovereign will, however, attract a risk weight of zero percent. – Identified though A/c wise information entered through Basel II / Foreign Exposure Menu Option.

3) Claims on Public Sector Entities (PSEs)

· Domestic public sector entities will be Risk weighted as per Corporate. – Identified by

Constitution Code 11 / 13 / 52

· Foreign public sector entities will be identified by Constitution code ‘91’ and as per the Rating of County and /or International Rating of Customer, RW is assigned. Higher of RW assigned to Country and/or International Rating of Customer is considered.

· County and /or International rating of Customer is entered through Basel II / Foreign

Exposure Menu Option. 4) Claims on Banks

· The claims on Banks incorporated in India and Foreign Bank branches in India will be risk

weighted as per their status as Scheduled Banks/ Non scheduled Banks and their CRAR. – Identified by Activity Code 9001 / 9002 / 9003 / 9004 / 9005 / 9006. Banks status as Scheduled Banks/ Non scheduled Banks and their CRAR will be as per the Bank Master and Name of Customer should be as per Bank master.

· All claims on scheduled banks, which comply with the minimum CRAR prescribed by the

Reserve Bank of India, will be assigned a risk weight, including RRBs, at 20%.

· All claims on Non-scheduled banks, which comply with the minimum CRAR prescribed by the Reserve Bank of India, will be assigned a risk weight, at 100%.

· All claims on scheduled and non scheduled banks will be assigned a risk weight as applicable to the counterparty bank’s capital adequacy position as on the date of last full audit as indicated in Table.

CRAR% Scheduled Banks

Other Banks

Over 9% 20% 100% 6 to <9 50% 150% 3 to <6 100% 250% 0 to < 3 150% 350% Negative 625% 625%

· Foreign Banks will be identified by Constitution code ‘60’ and as per the Rating of County

and /or International Rating of Customer RW is assigned. Higher of RW assigned to Country and/or International Rating of Customer is considered.


Exposure Menu Option.


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5 Corporate The system identifies exposure to Corporate on following criteria:

§ Total average annual turnover is more than or equal to Rs. 50 crores. (Branches should be particular in filling in the sales turnover as per Basel II definition.)

§ The maximum aggregated exposure of the customer is more than Rs. 5 crores.

6) Non- Resident Corporate Identification

· All eligible Corporate along with Special Category Code 31 will be considered as Non-resident Corporate. As per the Rating of County and /or International Rating of Customer, RW will be assigned.


Exposure Menu Option. 7) Claims Secured by Residential Property

· These will be identified by Activity Code 3401 – 3499, Constitution Code 41,42,43,44 and Security Code 13. Branches have to be very particular about these codes and activities. These should be filled in correctly and accurately.

As per the revised guidelines, the Risk Weights on Individual Housing Loans ( under claims on residential property) are as under, in ASCROM System :

LTV Ratio Amount of Loan Risk Weight %

= or <90% Upto Rs.20 Lacs 50.00 = or <80% Above Rs.20 Lacs and <Rs.75 Lacs 75.00 = or <75% Above Rs.75 Lacs 75.00

8) Claims Secured by Commercial Real Estate The identification of Commercial Real Estate Accounts in ASCROM System is done on the basis of the following :

· Activity code : 8207 to 8209, 9207 to 9209, 9571 and 9585 and · Special Category Code : 84 and · Security codes: 19, 20, 21, 110 to 118. · Advance accounts sanctioned under “Loan Against Future Rent Receivable” are to be

classified as exposure under Commercial Real estate. These accounts should be given the activity code 9571 and Special Category Code 84 irrespective of security code

The Risk-weight for Commercial Real Estate Exposure (CRE) and Commercial Real Estate - Residential Housing exposure (CRE-RH), as per the revised guidelines are as under, in ASCROM System :

Exposure in CRE Sector Existing Risk Weight %

Revised Risk Weight %

Commercial Real Estate ( CRE) 100.00 100.00

Commercial Real Estate – Residential Housing (CRE-RH)

NA 75.00


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9) Specified Categories

· Consumer credit, including personal loans (Activity Code 9301, 9302, 9303, 9304, 9351, 9361, 9399) and credit card receivables (Activity Code 9535) will attract a higher risk weight of 125%.

· Capital market exposures (Activity Code 9069, 9070, 9071, 9521, 9522, 9523, 9513, 9514, 9515, 9516, 9517, 9518, 9519, 9520, 9524) and claims on ‘Non-deposit taking systemically important non-banking financial companies’ (identified by Special Category Code 33), will attract a higher risk weight of 125%

10) Other Assets

· Loans and advances to staff will be identified with special category code 10,11,12,17 and GL Codes relating to Staff Loans.

· Systematically Important NBFCs will be identified with Special Category Code 33, Infrastructure Finance Company will be identified with Special Category Code 38 and Asset Finance Company will be identified with Special Category Code 39

11) Undrawn Balance of Funded Facilities considered for RWA computation:

· For BP/BD, CC & OD difference between Sanction Limit (Draw Limit for CC and OD) and outstanding will be considered as undrawn balance and attract a CCF of 20%.

· It has been noticed that some branches, without realising the consequences, have filled in limits in FINACLE, which run in thousands of crores and the same is picked up in ASCROM system. Therefore, branches have to be very particular about filling the sanctioned limit in FINACLE and ensure that limit filled is the same as the last sanctioned/reviewed limit, since this data is uploaded from FINACLE to ASCROM System directly.

· Branches to verify the credit limits for CC, OD, BP/BD accounts entered in the transaction system with the latest sanction/review. Branches to tally the limits entered in the ASCROM system with the transaction system and latest sanction\review

· For Term loan /Demand Loan not disbursed fully, the stage wise completion will be verified vis a vis current Principal Amount. As per the current stage reached, If it is scheduled to be completed within one year, the CCF will be 20% and if it is more than one year then the applicable CCF will be 50%. CCF will be applied on undrawn Balance.

· Branches have to complete the stage wise disbursement schedule for pending future disbursement through - Quarterly Data Updationà Customer Accountsà Format Dà TL -DL detailsàAdd Stage Calender.

· As per the instructions of Risk Management Department, BCC, the following modification is

carried out in ASCROM System, from September 2014 , relating to computation of Risk Weight Assets (RWA) – on Undrawn commitment covering funded facilities only: RWA computation shall be done in ASCROM System, covering Fundbased outstanding, Non-Fundbased outstanding and Undrawn portion of Fundbased facilities only. Accordingly, the above computations shall be reflected in RWA Master Summary of BASEL II, generated from ASCROM System.


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Other Important Points

· For Bill Drawn Under LC of Other Bank, Issuing Bank Name to be updated and the RWA will be calculated as per the type of Bank and CRAR of the Bank.

· Primary Security Value & Details of Primary CRM Security to be provided at Account level. · Collateral Security Value & Details of Collateral CRM Securities to be provided at Customer

level. · Constitution codes for Central Government i.e. Code no 15 and for State Government i.e. code

no 12 to be rechecked. · Accounts shown as Guaranteed by State Government (Special Category Code 20 and 21) and

Guaranteed by Central Government (Special Category Code 22 and 23) to be verified & rechecked. Ensure that the guaranteed amount and expiry date is fed correctly.

· Special category code 84, Activity codes & Security codes to be rechecked for Commercial Real Estate and other sensitive Sectors.

NPA ACCOUNTS:

· Unapplied interest in NPA accounts to be computed as per contractual Rate of Interest in all NPA accounts, excluding Suit filed / DRT / Decreed accounts, from the last date of interest application up to 31.03.2015 and the details are to be updated in ASCROM data. The element of unapplied interest is not updated by branches regularly and the same has been commented upon adversely by our SCAs. Hence Branches are advised to ensure strict compliance in respect of updating the data relating to Unapplied Interest as on 31.03.2015 and on regular basis subsequently.

· ECGC/ CGTMSE Claim Received amounts; Margin Money details should be updated. UPDATION OF DATA: In order to ensure accuracy of Data relating to Advance accounts and preventing manual updation of ASCROM Data, uploading of the Account level data, Data of sanctions/ disbursements including repayment details made during the month, directly from Finacle, to ASCROM, through text / encrypted files, is in place. This process is followed by all the branches in the monthly ASCROM Data updation invariably. Updation of Data is a time bound exercise and any delay even by one branch will affect the whole process at Bank level. It is of utmost importance that all branches stick to the time schedule, for commencement of the task and completing the same as per the schedule. Our SCAs have adversely commented on the instances of changing data, inclusive of improper updation of critical fields relating to Restructuring, Interest Sacrifice, Projects Under Implementation, and Adversely commented Accounts, NPA Status codes especially relating to BIFR, Compromise accounts, Change of GL codes from FITL to Term Loan accounts. Branches are once again advised to update data through uploading of the relevant files from FINACLE, to ASCROM system and once processing is completed, data is submitted to RO, they should not change the data. If the Branches need to change the details of RV of security, recovery details etc., they should seek concurrence of RO furnishing full details. VALIDATION OF DATA: ASCROM SYSTEM has been provided with VALIDATION MENU generating validation reports for correction/validation of specific discrepancy viz.


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GL Code/Ledger wise (for Balancing/Tallying of GL Error Report); Multiple Activities; Activity; Scheme; Interest Rate; Base Data Validation; Unsecured Advances; DICGC/ECGC Claims Received A/cs ; Govt. Guaranteed Accounts ; Expert Validation wizard. Despite repeated instructions by ASCROM CELL, Validation of Data is not being done by Branches, leading to errors in Data and adverse comments on quality of data by our Statutory Auditors. Branches should ensure that validation of data is done by generating appropriate Validation Reports, correcting the discrepancy, before submission of final data to controlling authority/-generating Returns for Audit purpose. Branches/ Regions are advised to go through the guidelines on validations incorporated in revised ASCROM Versions, and advised by ASCROM Cell, BCC along with the details of modifications of revised versions during the year 2014-15. GL ERROR REPORT - TALLYING WITH CLOSING RETURN 1:

Branches should report G/L figures, in Closing GL figures of ASCROM, as per Return No: 1. Branches / Regions / Zones have to ensure that the GL CODES of ADVANCES (from GL Code 2160 to 2400 & 3040) and GL CODES relating to Deductions viz., Interest Suspense, DICGC/ECGC Claims received, Suit filed Sundry Deposit account should be tallied with GL Balances as per Closing Return No: 1. Further GL Codes relating to Off-Balance Sheet items viz LC balances, BG balances. PWO balances, should also be tallied with GL Balances as per Closing Return No.1. GL ERROR REPORT is not part of CLOSING RETURNS and hence is not subject to Limited Review. However, AUDITORS shall be insisting on verification of GL ERROR REPORT of ASCROM for errors in GL Codes and hence tallying of GL ERROR REPORT is an important task of ASCROM Data Updation. DEGRADATION / UPGRADATION VALIDATION REPORT: Printing of Degradation / Up-gradation Report is mandatory since, the aggregate accounts/amount of Degradation/Up gradation is required to be entered as check figures for data processing. Degradation Validation report contains the details of DEFAULT DATE, DEGRADATION DUE TO NON-FINANCIAL REASONS as ‘NF’ and Due to Financial reason as “F” besides NPA Date & CAD/CADU amounts. Since these reports are mandatory and decide the final status of assets of the branch, the same are to be verified account wise, by rechecking the basic inputs, before the data is processed. These reports do not form part of closing returns and hence are not subject to Limited Review. However, it is mandatory for the branches to get the print out of degradation / upgradation report. A duly signed copy of Degradation/ Upgradation report along with other closing report should also be sent to regional office for their perusal and verification. Regional offices to ensure that all the accounts appearing in degradation report have been classified as NPA. NET AMOUNT VERIFICATION REPORTS / CLOSING RETURNS / MASTER SUMMARY 19/20:


15

Further it was also pointed out that cross tallying of various column totals in the Master Summary 19 with GL figures was not done accurately by Branches / RO/ZO. In order to facilitate branches / RO / ZO, to reconcile / tally the columns in Master Summary of Advances 19, NET AMOUNT VERIFICATION REPORT, is provided in ASCROM system. This Report is a mandatory report and has to be generated before generation of Closing Returns. NET AMOUNT VERIFICATION REPORT furnishes the following information of a branch:

· List of Standard accounts with outstanding Interest Suspense/DICGC/ECGC Claims /SFSD amount to enable branches rectify the same by reversing the amounts.

· List of NPA accounts where the aggregate amount of deductions are in excess of Balance

outstanding, to enable branches / RO /ZO to prepare reconciliation for tallying the column wise totals of Master Summary 19, as required by HO

In view of the above, Branches have to invariably generate NET AMOUNT VERIFICATION REPORT, before generation of Closing Returns, and verify the accounts, carry out the rectifications wherever necessary. This exercise has to be carried out every quarter without fail. PROVISION CALCULATION WORK SHEETS: To facilitate Auditors to verify provision calculation, Provision Calculation work sheet for any Account / Range of balance / Borrower, can be generated from ASCROM system through the following menu option: Reports à Reports à Audit / Accountsà Worksheet for Provisions. Branches should ensure that Provision Calculation Worksheets for all NPA accounts of balance outstanding more than Rs.1.00 Lakh, are generated along with Closing Returns and made available to the Auditors for verifications. DISCLOSURES – TO BALANCE SHEET – COMPILATION AS OF 31.03.2015: The following Disclosures to Balance Sheet, as on 31.03.2015, are compiled based on ASCROM Data and to be certified by Statutory Auditors at Branch / Region/ Zone / BCC :

1. Certificate – 7 - MOVEMENT CHART OF GROSS NPAs 2. Maturity Pattern of Assets – Residual Maturity of Advances (Closing Return No: 22) 3. Certificate – 4 - Exposure to Sensitive Sector (Break up of Advances to Capital Market

and Real Estate Sector) 4. Certificate – 8 – Restructured Advances

The following are the guidelines for compilation of these Disclosures, based on ASCROM System generated Reports, for Annual Closing as of 31.03.2015 and certification by Statutory Auditors:

1. Certificate – 7- : MOVEMENT CHART OF NPAs Branches/Region/Zone should prepare the Movement Chart NPA, based on the data of ASCROM generated NPA Movement Report and figures of -2- PL codes as per Closing Return No: 2, as detailed below:


16

Particulars Amt in Rs 000

Gross NPAS as on 1st April, 2014 (Opening Balance) Additions New NPAs during the year Increase in Existing NPAs Intt/ Charges etc debited and recovered in Existing NPA (as per PL 5250 – Return No: 2)

Sub Total (A) Less Upgradations Recoveries (excluding recoveries made from upgraded accounts)

Write offs ( as per PL 1720 – Return NO;2) Sub-total (B)

Gross NPAs as on 31st March 2015(closing Balance) (A-B)

· The figures for opening balance of NPA as on 01.04.2014, New NPAs, Increase in Existing NPAs, Up gradation and Closing Balance of Gross NPAs as on 31.03.2015, shall be available in Supplementary D1 report.

· Amount of interest/ charges etc charged in NPA accounts and recovered shall be as per PL

Code 5250 – Return No 2.

· Amount of Write Off by branches, shall be as per PL Code: 1720 – Return No 2. Branches should generate NPA Movement Report from ASCROM System, after the Data processing for March 2015 is completed through the menu option –

· Reports ->Reports -> Recovery -> Supplementary NPA Movement -> D1 Report -> Select Yearly option.

On the basis of the above D1 Report and figures of PL 5250, PL 1720 as per Closing Return No: 2, Branches have to complete the NPA Movement Chart, as per the format, advised by HO in its Closing Circular, for certification. Branches are also advised have to generate D1 Detailed Report, for verification of list of NPA accounts as per opening Balance, Degraded during the year, upgraded during the year, where there is increase in existing NPA and Closing Balance in NPA accounts. Regions/ Zones have to generate D1 Summary and D1 Detailed report through the above menu option, after incorporating MOC 14-D, of Branches / Regions respectively and carrying out MOC Processing. On the basis of the D1 Report, figures of PL 5250, PL 1720 of Closing Return No;2 of Region/Zone, Regions / Zones have to complete the NPA Movement Chart, as per the format, advised by HO in its Closing Circular, for verification by Auditors and Certification.

2. ALM SUPPLEMENTARY REPORT: This Report should be generated by Branches / Regions / Zones for verification of Auditors regarding the Maturity pattern of Assets and Liabilities from ASCROM System, through the menu option:


17

Reports -à Reports à Audit/Accounts à ALM SUPPLEMENTARY REPORT Branches should generate this Report after Data processing and should ensure that total Balance outstanding and Total NPA figures, tally with Total figures as per Master Summary 20. Regions, Zones should generate the above report, after MOC incorporation and Processing and should ensure that total Balance outstanding and Total NPA figures, tally with Total figures as per POST MOC - Master Summary 20.

3. Certificate – 4- EXPOSURE TO SENSITIVE SECTOR The figures for preparation of this certificate in prescribed format can be obtained by generating exposure to sensitive sector report from :

· Reports àReports àWholesale Banking à Exposure to Sensitive Sector_ certificate 4. & Auditor Verification Report – Exposure to Sensitive Sector_certificate 4 ( List of Accounts)

Since these figures are subject to audit, during Annual Audit, branches have to be very particular about data feeding related to sensitive sectors covered under this report to have correct output. The information generated from this report should be used to prepare the Exposure to Sensitive Sector in prescribed format. Identification of Commercial Real Estate Accounts in ASCROM System, is done on the basis of the following :

· Activity code : 8207 to 8209, 9207 to 9209, 9571 and 9585 and · Special Category Code : 84 and · Security codes: 19, 20, 21, 110 to 118. · Advance accounts sanctioned under “Loan Against Future Rent Receivable” are to be

classified as exposure under Commercial Real estate. These accounts should be given the activity code 9571 and Special Category Code 84 irrespective of security code

Branches are advised to be guided by circular no BCC:BR:102:15 dated 07.01.2010 issued by Wholesale Banking Department, Baroda Corporate Centre, Mumbai for classifying an account under real estate/ commercial real sector. As regards the other segments relating to this Certificate, the relevant data is generated by ASCROM System, at Branch / Region/ Zone/ BCC, in the Report on Exposure to Sensitive Sector, as per the following criteria:

· Indirect exposure (NHB & Housing Finance Companies (HFCs) will be identified by activity code 3450 to 3499.

· Advances against share to individuals shall be identified by activity code 9513 to 9525. · Similarly secured and unsecured advances to stockbrokers will be identified by activity

code 9070and 9071. · Any other advance against security of share will be identified by activity code 9069 and

security code from 40 to 43. · Finance extended for margin trading will be identified by activity code 9069.


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In order to have accurate data on Sensitive Sectors of Domestic Advances, it has been decided by our Higher Authorities, to compile and generate the Return on Exposure to Sensitive Sectors from ASCROM Data of March 2015 Accordingly Regions / Zones are requested to carry out the following :

· To go through the above guidelines relating to accuracy in Activity/Special Category / Security / Scheme Codes, relating to Accounts falling under various categories of Sensitive Sectors ( Commercial Real Estate , Capital Markets Exposure etc.,)

· To generate Report on Sensitive Sectors and List of Accounts, as per the menu options mentioned above as on 31.03.2015.

· To compile the Certificate -4 – Exposures on Sensitive Sectors, as of 31.03.2015, based on the ASCROM generated report and the same should be got certified by Statutory Auditors at Branch / Region / Zone

4. Certificate -8- Restructured Advances:

As per the instructions of Credit Monitoring Department, Branches/ Regions / Zones have to compile the data on Restructured advances as per Certificate -8-, based on ASCROM Data only, on quarterly basis. Accordingly for December 2014, Branches / RO/ ZO have to generate List of Restructured Accounts – NON CDR and CDR accounts separately through the following menu options, and tally the figures relating to Restructured Accounts, being reported in the Disclosure – Certificate 8, as at 31.03.2015

§ Reports -> Reports -> Credit Monitoring I -> 21) Restructured Accounts -> Other Restructured Accounts & CDR Accounts - separately.

Other Returns for certification by Statutory Auditors:

· Advances Closing Returns 15 to 18, Master Summary 19 & Master Summary 20

· BASEL II RETURN MASTER SUMMARY OF RISK WEIGHTED ASSETS: This report has to be generated for audit by invoking BASEL IIà RWA Summary (with undrawn) for Branch/Region/Zone for computing risk weighted assets as per Basel II requirement. Please ensure that RWA calculator has been run before submission of data to Regional office and outstanding advances in RWA master summary tally with outstanding in Return no 19 and 20.

· BASEL I RETURN These returns are being introduced this time replacing the Return no 13. Branches have to generate the following returns and get these audited. These Reports are available in BASEL II menu. 1. Risk Weight Assets Exposure - Section A. 2. Risk Weight Assets Exposure – Section B.


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CLOSING RETURN 14 D AND 14 ( MOC) : The nature of both MOC 14 & 14 D are given below, which should be prepared in actual Rupees only : SNO Nature of Changes / Modifications Return No

1 Classification of Advances and Provisioning

( Eg: Standard to NPA and vice-versa)

14 – D

2 Changes relating to PL and GL accounts ( including reversal of income / interest in case of change in borrower Asset Classification status from Standard to NPA )

14

Branches / Regions/ Zones , should ensure that where MOC 14-D, for divergence in Asset Classification, is finalized during the Limited Review as on 31.03.2015, MOC 14 should also be prepared towards reversal of unrealized interest. MOC 14 format, wherein ADVANCES related changes are suggested, should contain the following Advance Account details :

§ Name of the Advance Account § Facility § GL Code § ASCROM Customer ID § CBS Account Number.

*****


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LIST OF ASCROM RELATED RETURNS SUBJECTED TO LIMITED REVIEW / YEARLY AUDIT AT BRANCH LEVEL AS ON 31.03.2015 :

SNo Closing Return

No Description of Closing Return Menu options in ASCROM System

for generation of the Return

1 BASEL I Return

(Old Closing Return No: 13)

1. Risk Weight Assets Exposure - Section A.

2. Risk Weight Assets Exposure – Section B.

Basel II -> Risk Assets Exposure ->Risk Assets Exposures – Section A / Section B ( Closing Return 13)

2 15 Advances Closing Returns – Standard Advances

Reports -> Reports ->Audit/Accounts – 3) Closing Returns 15 A/B/C; 16 A/B/C; 17 A/B/C; 18 A/B/C

3 16 Advances Closing Returns – Substandard Advances

4 17 Advances Closing Returns – Doubtful Advances

5 18 Advances Closing Returns – Loss Advances

6 19 (Master Summary)

Master Summary of Advances (Facility wise)

Reports -> Reports ->Audit/Accounts – 1) Master Summary 19

7 20 (Master Summary)

Sectoral Classification/ Provision of Advances AND Classification / Provision of Advances.

Reports -> Reports ->Audit/Accounts – 2) Master Summary 20 – Part I & Part II

8

BASEL II: RWA Master Summary (as per Basel II )

Master Summary of Risk Weighted Assets (With Undrawn).

Basel II -> RWA Master Summary ( with Undrawn)

Dt: 12.03.2015

*****

========================================================================================== Corporate Accounts & Taxation Department, 2

nd Floor, Baroda Corporate Centre,

C-26, G Block Bandra Kurla Complex, bandra (E) , MUMBAI 400 051 Tel : 022 – 66985288, 66985280 Fax (022) 26526890, email id : [email protected]

1

ANNEXURE V

ANNUAL CLOSING FOR THE YEAR ENDED 31ST

MARCH 2015

GUIDELINES FOR BRANCHES UNDER AUDIT

1 The name and the address of the auditors of your branch will be intimated to you by your

Zonal Office. On intimation from your Zone, you should give a courtesy call to your Branch Auditors and exchange your telephone numbers, names of persons identified for audit etc. A rapport should be established with the auditors which will facilitate better understanding and smoothening of audit. The Branches have to ensure that audit is commenced & completed as early as possible.

2 As far as possible, the Branches are advised to identify a particular Officer/Officers depending

upon the size of the Branch and availability of Officers, to attend the requirements of the Auditors, during the course of Audit. The identified Officer/s is/are to act under the directions of the Branch Head. This arrangement may facilitate conduct and completion of Audit in a smooth and timely manner.

3 When the Auditors visit the Branch, they should be attended by a senior officer in the Branch

and proper care for their seating arrangements etc. should be ensured. It is our experience that the Branch Auditors, in some cases, find a cause of complaint to our Higher Authorities for non-co-operation, non-submission of explanation/information etc. A proper care, understanding and coordination should be established to avoid unpleasantness. Apart from your Branch Audit, the Auditors have to conduct audit of other Branches also. Please, therefore, provide all necessary assistance and ensure that audit of your Branch is smoothly completed in time. The Branches should ensure that audit is completed in one visit, as far as possible.

4 5

It is observed that sometimes, the Branch Auditors have to go back before completion of audit as Closing Returns are not ready for audit at the concerned Branch. This not only delays the process of audit but also increases the cost of travel and other expenses to the Bank and wastage of precious time of the Branch Auditors and all concerned. Please ensure that such type of situation does not arise at the Branch. It, sometimes, happens that the Branch Auditors take more than reasonable time for completion of audit, which again delays the Zonal Consolidation and audit process and pose problems for the Zonal Office to settle the audit bills/ claims made by the Auditors for audit. In case, the time taken by the Auditors, in completing the audit, is exceeding the reasonable time, you should bring the same to the notice of competent authorities at your Regional/ Zonal Office. On visit to the branch, the Auditors would be requiring following records for inspection/verification.

A Full set of all Closing Returns complete in all respect duly signed by the Branch head. B The Balance Sheet file with the Audit Report and Long Form Audit Report of your Branch

for the previous year audit/last audit.




2

C Internal Inspection Report/Concurrent Audit Report (if the branch is under concurrent audit).

D Print out of General Ledger and Profit and Loss account for full year E Closing circular under reference. F Significant Accounting Policies of the Bank. 6 The Branch Auditors may request for verification of Cash balance held by the Branch. In that

case, they may be allowed to verify opening / closing balance of Cash in hand on any day during the course of audit (other than the balance of Cash held in Currency Chest).

7 The Branches under Concurrent Audit are advised to keep Concurrent Audit Reports, for the

relevant period, ready for perusal by the Branch auditors, if desired by them. The Branch should also ensure that the Concurrent Auditors’ observations (up to Feb. 2015 Concurrent Audit Report) are attended to and resolved satisfactorily.

8 The Stock / Book Debts Statements submitted by the borrowers in advance accounts may be

kept handy for perusal by the Branch Auditors. 9 The Branches are advised to ensure that Long Form Audit Report prepared by Statutory

Branch Auditors in the format only, as prescribed by the Reserve Bank of India. The Branches are also advised to go through the revised LFAR format so as to keep all the information ready (including details in repect of advances of Rs.2 crores and above, as per the prescribed proforma) at the time of Audit and furnish the same to the Branch Auditors to enable them to finalise the LFAR without any delay. The following type of specialised branches are require to furnish certain additional information for which a quetionnaire is prescribed by RBI. Branches should ensure to keep the relavent informmation ready. § Branches dealing in Foreign exchange transactions. § Branches dealing in very large advances, such as, Corporate Banking Branches and

Industrial Finance Branches or branches with advances in excess of Rs. 100 crores. § Branches dealing in recovery of Non Performing Asset such as Asset Recovery

Management Branches. § Branches dealing in Clearing House Operations, normally referred to as Service Branches.

. 10 As per RBI rules, the Branch Auditors are not entitled for any advance against their TA/DA

bills / audit fees. 11 One officer may be entrusted with the work of co-ordination with the auditors. Though the

auditors may discuss various matters with the branch in-charge during the audit, please impress upon the auditors to discuss the draft audit report and long form audit report immediately on completion of the audit and before submitting their final report.

12 Reporting Memorandum of Changes :




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a The Balance Sheet, Profit & Loss A/c etc. will be submitted by Branches to their Regional Office immediately on closure of books on 01.04.2015 itself. Any changes required to be made afterwards or during the course of audit, should be reported through Memorandum of Changes (MOCs) i.e. Closing Returns Nos.14- meant for accounts other than advances.

b Account wise Amount of Rs.50,000/- & above only are to be reported in MOC

statements. However if the amount is less than Rs. 50000/- the rectification entry should be passed during course of audit itself. Please also note that no MOC is to be given for the provisions mentioned in Annexure IX which will be taken care at Corporate level.

c Rectification of Memorandum of Changes (MOCs) in Branch's books :

The actual effect of all those entries/adjustments, which affect the change of balances in the books of the Branches and reported in MOCs - Return No.14, has to be given in the books of the Branch, during the course of audit in the current accounting year i.e. 2015-2016. The auditors have been requested to ensure that the rectification entries are passed by the Branches as pointed out in the MOCs. Please also note that No Schedule is raised on HOCORP for MOC entries.

d General :

In case, you differ with the views of the Auditors or you are unable to convince the Auditors on some major issues, wherein policy or large amount is involved, you should immediately contact your Regional Office over phone / fax / e-mail during the course of audit itself, and sort out such issues finally, without leaving them pending for further discussion at Regional Office / Zonal Office / Corporate level.

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On completion of audit, you should ensure that all Closing Returns are stamped, dated, signed and delivered by the Auditors to you. The Audit Report and L.F.A.R. should also be simultaneously obtained. All the required Certificates (listed at Sr.No.G.(b) Certificates) should be obtained from the Auditors. Branch Auditors be requested to send Soft Copy of LFAR along with Hard Copy to the concerned Zonal SCAs directly. Please inform your regional authority promptly about completion of audit and the MOC, if any given.

CORPORATE ACCOUNTS & TAXATION DEPT.

BCC, Bandra (E)

MUMBAI.




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Annexure – VI

BANK OF BARODA

Reporting of Inter Branch Forex Transactions for the Full Year ended 31st March 2015

Name of PMO_______________

NOTE NO. 4(A) INTEREST PAID/RECEIVED ON BORROWINGS/PLACEMENTS TO/FROM PMOs IN INDIA

(Rs. 000's omitted)

HEAD OF THE ACCOUNT INTEREST PAID INTEREST RECEIVED

* Code – 1021 * Code –3077

Amount Amount

(a) MUMBAI MAIN OFFICE, MUMBAI

(b) ASHRAM ROAD, AHMEDABAD

(c) IBB, NEW DELHI

(d) IBB, CALCUTTA

(e) IBB, CHENNAI

(f) SPECIALISED INTEGRATED TREASURY BRANCH

TOTAL *

NOTE NO. 4(B) INTEREST PAID/RECEIVED ON

BORROWINGS/PLACEMENTS (WITH OVERSEAS BRANCHES)


* Code - 1022 * Code -3079

Amount Amount

(a) U.K.

(b) New York

(c) Nassau

(d) Brussels

(e) Fiji

(f) Mauritius

(g) Sultanate of Oman

(h) U.A.E.

(i) Seychelles

(j) OBU Mauritius

(k) South Africa

(l) OBU Mumbai

(m) OBU, Singapore

(n) Hongkong

(o) Bahrain

(p) Guangzhou, China

(q) Australia

(r) DIFC,Dubai

TOTAL *




5

NOTE NO. 4(C) INTEREST PAID/RECEIVED ON

BORROWINGS/PLACEMENTS (OVERSEAS SUBSIDIARIES)


* Code - 1017 * Code -3061

Amount Amount

(a) KENYA

(b) UGANDA

(c) GUYANA

(d) BOTSWANA

(e) TANZANIA

(f) BOB UK Ltd

(g) TRINIDAD & TOBAGO

(h) GHANA

(i) Newzealand

TOTAL *

*Total should tally with the figures under the respective codes reported in Closing Return No. 2

NOTE: The details of Interest Earned from / paid to PMO in India (Code - 3077/1021) & Interest Earned from / paid to our Foreign Branches (Code - 3079/1022) & Interest Paid/Received onBorrowings/Placements (Overseas Subsidiaries) (Code - 1017/3061) have to be reported here. This will be applicable to PMO in India & Foreign Branches through the International Division.

Place: ______________

Date: _______________ SIGNATURE OF BRANCH HEAD


nd Floor, Baroda Corporate Centre, C-26, G Block, Bandra Kurla Complex


1

Annexure-VII SIGNIFICANT ACCOUNTING POLICIES FOR THE YEAR ENDED MARCH 31, 2015

1 BASIS OF PREPARATION

The financial statements have been prepared under the historical cost convention unless otherwise stated. They conform to Generally Accepted Accounting Principles (GAAP) in India, which comprises statutory provisions, regulatory/ Reserve Bank of India (RBI) guidelines, Accounting Standards/ guidance notes issued by the Institute of Chartered Accountants of India (ICAI) and the practices prevalent in the banking industry in India. In respect of foreign offices, statutory provisions and practices prevailing in respective foreign countries are complied with.

2 USE OF ESTIMATES

The preparation of financial statements requires the management to make estimates and

assumptions considered in the reported amount of assets and liabilites (including contingent liabilites) as of date of the financial statements and the reported income and expenses for the reporting period. Management believes that the estimates used in the preparation of the financial statements are prudent and reasonable. Future results could differ from these estimates. Any revision to the accounting estimates is recognised prospectively in the current and future periods unless otherwise stated.

3 INVESTMENTS

3.1 Classification The Investment portfolio of the Bank is classified, in accordance with the RBI guidelines,

into:

a “Held to Maturity” (HTM) comprising Investments acquired with the intention to

hold them till maturity. b c

“Held for Trading” (HFT) comprising Investments acquired with the intention to trade. “Available for Sale” (AFS) comprising Investments not covered by (a) and (b) above

i.e. those which are acquired neither for trading purposes nor for being held till maturity.

3.2 Acquisition Cost

Cost of acquisition of Investments is net of incentives, front-end fees and commission.

3.3 Basis of Valuation

Investments classified as HTM are carried at weighted average acquisition cost unless it is more than the face value, in which case the premium is amortized over the period remaining to maturity.




2

Investments classified as HTM includes debentures / bonds which are deemed to be in the nature of / treated as advances (for which provision is made by applying the RBI prudential norms of assets classification and provisioning applicable to Advances). Investments in Regional Rural Banks, Treasury Bills, Commercial Papers and Certificates of Deposit which have been valued at carrying cost. Investments in subsidiaries and joint ventures (both in India and abroad) are valued at acquisition cost less diminution, other than temporary in nature. Bank’s investments in units of VCFs made after 23.08.2006 are classified under HTM category for initial period of three years and are valued at cost. After period of three years from date of disbursement, it will be shifted to AFS and marked-to-market as per RBI guidelines. Investments classified as HFT and AFS are marked to market scrip-wise and the resultant net depreciation if any, in each category disclosed in the Balance Sheet is recognized in the Profit and Loss Account, while the net appreciation, if any, is ignored.

Investments made by the Bank as Primary Dealer in Treasury Bills under HFT category have been valued at carrying cost.

For the purpose of valuation of quoted investments in ”Held for Trading” and “Available for

Sale” categories, the market rates / quotes on the Stock Exchanges, the rates declared by

Primary Dealers Association of India (PDAI) / Fixed Income Money Market and Derivatives Association (FIMMDA) / Foreign Exchange Dealers Association of India (FEDAI) are used.

Investments for which such rates / quotes are not available are valued as per norms laid down by RBI, which are as under: a Government /

Approved securities - on Yield to Maturity basis.

b Equity Shares,

PSU and Trustee shares

- at book value as per the latest Balance Sheet (not more than 12 months old), otherwise `.1per company.

c Preference Shares - on Yield to Maturity basis with appropriate

credit spread mark-up. d PSU Bonds - on Yield to Maturity basis with appropriate credit

spread mark-up.

e Units of Mutual Funds

- at the latest repurchase price / NAV declared by the Fund in respect of each scheme.

f Venture Capital - Declared NAV or break up NAV as per audited balance sheet which is not more than 18 months old. If NAV/ audited financials are not available for more than 18 months continuously then at `.1/- per VCF.




3

3.4 Disposal of Investments

Profit/ loss on sale of Investments classified as HTM is recognized in the Profit and Loss Account based on the weighted average cost / book value of the related Investments and an amount equivalent of profit on sale of Investments in HTM classification is appropriated to Capital Reserve Account. Profit/ loss on sale of Investment in AFS/ HFT category is recognized in Profit and Loss Account.

3.5 The Bank is following uniform methodology of accounting for investments on settlement

date basis.

3.6 In respect of investments at overseas branches, RBI guidelines or those of the host countries, whichever are more stringent are followed. In case of those branches situated in countries where no guidelines are specified, the guidelines of the RBI are followed.

3.7 The transfer of a security between these categories is accounted for at the acquisition cost /

book value / market value on the date of transfer, whichever is the least, and the depreciation, if any, on such transfer is fully provided for.

3.8 In respect of non-performing securities, income is not recognised, and provision is made for

depreciation in the value of such securities as per RBI guidelines.

3.9 REPO / Reverse REPO The Bank has adopted the Uniform Accounting Procedure prescribed by the RBI for

accounting of market Repo and Reverse Repo transactions [other than the Liquidity Adjustment Facility (LAF) with the RBI]. Repo and Reverse Repo Transactions are treated as Collaterised Borrowing / Lending Operations with an agreement to Repurchase on the agreed terms. Securities sold under Repo are continued to be shown under investments and Securities purchased under Reverse Repo are not included in investments. Costs and revenues are accounted for as interest expenditure / income, as the case may be.

Securities purchased / sold under LAF with RBI are debited / credited to investment

Account and reversed on maturity of the transaction. Interest expended / earned thereon is accounted for as expenditure / revenue.

3.10 Derivatives

The Bank presently deals in interest rate and currency derivatives. The interest rate derivatives dealt with by the Bank are Rupee Interest Rate Swaps, Foreign Currency Interest Rate Swaps and forward rate agreements. Currency Derivatives dealt with by the Bank are Options and Currency swaps. Based on RBI guidelines, Derivatives are valued as under:




4

The hedge/ non-hedge(market making) transactions are recorded separately. Derivative contracts designated as hedges are not marked to market unless their underlying is marked to market. Trading derivative positions are marked-to-market (MTM) and the resulting losses, if any, are recognized in the Profit and Loss Account. Profit, if any, is ignored. Income and Expenditure relating to interest rate swaps are recognized on the settlement date. Gains/ losses on termination of the trading swaps are recorded on the termination date as income/ expenditure. For the purpose of valuation, the fair value of the total swap is computed on the basis of the amount that would be receivable or payable on termination of the transactions of the swap agreements as on the Balance Sheet date. Losses arising there from, if any, are fully provided for while the profits, if any, are ignored.

Contingent Liabilities on account of derivative contracts denominated in foreign currencies are reported at closing rates of exchange notified by FEDAI at the Balance Sheet date.

4 ADVANCES

4.1 Advances in India are classified as Standard, Sub-standard, Doubtful or Loss assets and

provision for advances are made as per the Prudential Norms of the RBI. In respect of Advances made in overseas branches, Advances are classified in accordance with Prudential Norms prescribed by the RBI or local laws of the host country in which advances are made, whichever is more stringent.

4.2 Advances are net of specific loan loss provisions, interest suspense, amount received and

held in suit-filed Sundry Deposits and Claims Received.

4.3 In respect of Rescheduled / Restructured accounts, Provision for dimunition in fair value of restructured advances is measured in net present value terms as per RBI guidelines.

4.4 In case of financial assets sold to Asset Reconstruction Company (ARC)/ Securitization

Company (SC), if the sale is at a price below the net book value (NBV), (i.e. Book value less provisions held) the shortfall is debited to the profit and loss account. If the sale value is higher than the NBV, surplus is carried forward and utilised to meet the shortfall/ loss on account of subsequent sale of non-performing financial assets.

5 FIXED ASSETS

5.1 Premises and other Fixed Assets are stated at historical cost except revalued premises which

are stated at revalued amount. The appreciation on revaluation is credited to Capital Reserve and the depreciation provided thereon is deducted therefrom.

5.2 Premises include land and building under construction.

6 RESERVES AND SURPLUS




5

Revenue and other Reserves include Statutory Reserves created by foreign branches as per applicable local laws of the respective countries.

7 REVENUE RECOGNITION

7.1 Income (other than item referred in Paragraph 7.2)/ expenditure is generally recognised on accrual basis. In case of foreign offices, income/ expenditure is recognised as per the local laws of the country in which the respective foreign office is located.

7.2 Income by way of Fees, Commission other than on Government business, Commission on

Guarantees, Letter of Credits, Exchange, Brokerage and Interest on Advance Bills are accounted for on realisation basis. Dividend on shares in Subsidiaries, joint ventures and associates is accounted on realisation basis.

7.3 In view of uncertainty of collection of income in cases of Non-performing Assets/Investments,

such income is accounted for only on realisation in terms of the RBI guidelines. 7.4 Lease payments including cost escalation for assets taken on operating lease are recognised

in the Profit and Loss Account over the lease term in accordance with the AS 19 (Leases) issued by ICAI.

8 EMPLOYEE BENEFITS

8.1 PROVIDENT FUND

Provident fund is a defined contribution as the Bank pays fixed contribution at pre-determined rates.The obligation of the Bank is limited to such fixed contribution. The contributions are charged to Profit and Loss Account.

8.2 GRATUITY Gratuity liability is a defined benefit obligation and is provided for on the basis of an actuarial

valuation made at the end of the financial year. The gratuity liability is funded by the bank and is managed by a separate trust.

8.3 PENSION

8.3.1 Pension liability is a defined benefit obligation and is provided for on the basis of actuarial valuation made at the end of the financial year, for the employees who have joined Bank up to 31.03.2010 and opted for pension. The pension liability is funded by the bank and is managed by a separate trust.

8.3.2 New Pension Scheme which is applicable to employees who joined bank on or after

01.04.2010 is a defined contribution scheme, Bank pays fixed contribution at pre determined rate, the obligation of the Bank is limited to such fixed contribution. The contribution is charged to Profit and Loss Account.

8.4 COMPENSATED ABSENCES




6

Accumulating compensated absences such as Privilege Leave and Sick Leave are provided for based on actuarial valuation.

8.5 OTHER EMPLOYEE BENEFITS Other Employee benefits such as Leave Encashment, Leave Fare Concession and Additional

Retirement Benefit on Retirement are provided for based on actuarial valuation. In respect of overseas branches and offices, the benefits in respect of employees other than

those on deputation are valued and accounted for as per laws prevailing in the respective territories.

9 DEPRECIATION

9 .1

Depreciation on Fixed Assets in India [other than those referred in Paragraph 9.3 and 9.4] is provided on the written down value method in accordance with Schedule II to the Companies Act, 2013, except in case of revalued assets, in respect of which higher depreciation is provided on the basis of estimated useful life of these revalued assets.

.2 Depreciation on Fixed Assets outside India [other than those referred to in Para 9.3 below] is provided as per local laws or prevailing practices of the respective territories.

3 Depreciation on Computers and Software forming an integral part of Computer Hardware, in and oustside India is provided on Straight Line Method at the rate of 33.33% p.a., as per the guidelines of RBI. Computer software not forming part of an intergral part of hardware is charged directly to Profit and Loss Account.

4 Depreciation on ATMs is provided on Straight Line Method at the rate of 20% p.a. 5

Depreciation on additions is provided for full year and no depreciation is provided in the year of sale / disposal.

6 Cost of leasehold land and leasehold improvements are amortised over the period of lease.

10 IMPAIRMENT OF ASSETS

Impairment losses (if any) on Fixed Assets (including revalued assets) are recognised in accordance with AS 28 (Impairment of Assets) issued by the ICAI and charged off to Profit and Loss Account.

11 FOREIGN CURRENCY TRANSACTIONS:

11.1 Accounting for transactions involving foreign exchange is done in accordance with AS

11, (The Effects of Changes in Foreign Exchange Rates), issued by the ICAI.




7

11.2 As stipulated in AS 11, the foreign currency operations of the Bank are classified as a) Integral Operations and b) Non Integral Operations. All Overseas Branches, Offshore Banking Units, Overseas Subsidiaries are treated as Non Integral Operations and domestic operations in foreign exchange and Representative Offices are treated as Integral Operations.

11.3 Translation in respect of Integral Operations

a The transactions are initially recorded on weekly average rate as advised by FEDAI. b

Foreign Currency Assets and Liabilities (including contingent liabilities) are translated at the closing spot rates notified by FEDAI at the end of each quarter.

c

d

The resulting exchange differences are recognized as income or expenses and are accounted through Profit and Loss Account. Any reversals / payment of foreign currency assets and liabilities is done at the weekly average closing rate of the preceding week and the difference between the outstanding figure and the amount for which reversal / payment is made, is reflected in Profit and Loss Account. Foreign exchange spot and forward contracts outstanding as at the balance sheet date and held for trading, are revalued at the closing spot and forward rates respectively notified by FEDAI and at interpolated rates for contracts of interim maturities. The resulting forward valuation profit or loss is included in the Profit and Loss Account.

11.4 Translation in respect of Non Integral Operations

a b

Assets and Liabilities are translated at the closing spot rates notified by FEDAI at the end of each quarter. Foreign Exchange Spot and Forwards contingent liabilities outstanding as at the balance sheet date are translated at the closing spot and forward rates respectively notified by FEDAI and at interpolated rates for contracts of interim maturities.

c d

Income and Expense are translated at quarterly average rate notified by FEDAI at the end of each quarter. The resulting exchange differences are not recognized as income or expense for the period but accumulated in a separate account ”Foreign Currency Translation Reserve”

till the disposal of the net investment.

11.5 Forward Exchange Contracts In accordance with the guidelines of FEDAI and the provisions of AS 11, Foreign exchange spot and forward contracts outstanding as at the balance sheet date and held for trading, are revalued at the closing spot and forward rates respectively notified by FEDAI and at interpolated rates for contracts of interim maturities. The resulting forward valuation profit or loss is included in the Profit and Loss Account.




8

12 TAXES ON INCOME

This comprise of provision for Income tax and deferred tax charge or credit (reflecting the tax effects of timing differences between accounting income and taxable income for the period) as determined in accordance with AS 22 (Accounting for taxes on Income) issued by ICAI. Deferred tax is recognised subject to consideration of prudence in respect of items of income and expenses those arise at one point of time and are capable of reversal in one or more subsequent periods. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which the timing differences are expected to be reversed. The effect on deferred tax assets and liabilities of a change in tax rates is recognised in the income statement in the period of enactment of the change

13 EARNINGS PER SHARE

The bank reports basic and diluted earnings per equity share in accordance with the AS 20 (Earnings Per Share) issued by the ICAI. Basic earnings per equity share has been computed by dividing net income by the weighted average number of equity shares outstanding for the period. Diluted earnings per equity share has been computed using the weighted average number of equity shares and dilutive potential equity shares outstanding during the period.

14 PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

As per AS 29 (Provisions, Contingent Liabilities and Contingent Assets) issued by the ICAI, the Bank recognises provisions only when it has a present obligation as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and when a reliable estimate of the amount of the obligation can be made.

Contingent liability is disclosed unless the possibility of an outflow of resouces embodying economic benefit is remote.

Contingent Assets are not recognised in the financial statements since this may result in the recognition of income that may never be realised.

*******************************************************************************************************************


nd Floor, Baroda Corporate Centre, C-26 G Block, Bandra Kurla

Complex, Bandra (E), MUMBAI 400 051 Tel : 022 – 66985288, 66985280 Fax (022) 26526890 email id : [email protected]

ANNEXURE - VIII

TIME SCHEDULE FOR AUDIT AND FINALISATION OF ACCOUNTS & LFAR UPTO ZONAL OFFICE LEVEL FOR THE YEAR ENDING 31st MARCH 2015.

Returns to be kept

ready / submitted

Audit to be completed by

1. BRANCH AUDIT *

(Including Auditors Reports & LFAR of the Branch)

*All the branches including Top 20 Branches, overseas branches and other branches audited

by SCAs/ Statutory Branch Auditors

9th April 2015

All Returns including ASCROM Returns 2nd April, 2015

2. Submission of unaudited Balance Sheet, P/L and other closing returns to CA&T Dept.,BCC, Mumbai

By Region office to Zonal office

By Zonal office to CA&T Dept., BCC,, Mumbai

7th April, 2015

8th April, 2015

3) AUDIT OF RO/ZO BY SCAS :

a) Completion of audit

13th April 2015

b) Finalisation of MOC, Certificates, Tax Audit Report, Auditors Report & LFAR of the Zone.

13th April 2015

c) Finalisation of classification of all advances and

provisioning requirement including discussions with Zonal authorities and finalisation of provisions on NPA

on large problem credit accounts

13th April 2015

d) Submission of audited returns by zonal office to CA&T

Dept., BCC, Mumbai

15th April, 2015



Bandra (E) MUMBAI 400 051 Tel : 022 – 66985288, 66985280 Fax (022) 26526890 email id : [email protected]

ANNEXURE IX


MARCH 2015

LIST OF ITEMS FOR WHICH BRANCHES SHOULD NOT

MAKE PROVISIONS AT THEIR LEVEL

1. Standard Advances 2. NPA. 3. Other items like outstanding entries in IBTA, Sensitive A/cs., etc.

4. Sacrifice in respect of Restructured Advance A/cs

5. Country Risk Exposure

6. Bonus payable 7. Provision for unrealised income parked in Proxy account

8. Staff Retirement Benefit viz. Leave Encashment, Additional Retirement Benefit, Pension,

Gratuity, Wage Revision.

9. Statutory Auditors Fee & Expenses including Statutory Branch Auditors fees & expenses but excluding fee payable to Concurrent Auditors/ ISO Auditors etc.

10. Depreciation on Premises owned by the Bank

11. Guarantee Fee payable to DICGCI for Deposit Insurance.

12. Claims against the Bank not acknowledged as debts.

13. Taxation – Income Tax & Wealth Tax, Deferred Tax Assets & Liabilities.

14. Provision for Frauds 15. Provision for unhedged Foreign currency exposure.

16. Provision for depreciation on Investments is made by SITB Branch.

17. Amortisation of Premium on Investments is made by SITB Branch.



Bandra (E) MUMBAI 400 051 Tel : 022 – 66985288, 66985280 Fax (022) 26526890 email id : [email protected]

****************

1

ANNEXURE X

ANNUAL CLOSING FOR THE YEAR ENDED 31ST MARCH 2015

Statutory Audit of ALM Statement:

In terms of RBI guidelines, residual maturity of assets and liabilities is to be published in Bank's Annual Report as

part of additional disclosure in Annexure to schedule - 18, Notes on Accounts. Our Bank has been publishing the same based on information submitted by branches in FDR Census and ASCROM. Since under the CBS system

the ALM data can be generated at the centralized level for the bank as a whole, there is no need for the branches to generate ALM statement for term deposits at their end and thus not required to get it audited by the

auditors at branch level. The return will be generated for Bank as a whole through centralized system at corporate level and the same shall be audited at the corporate level.

Residual Maturity of Borrowings:

A few branches have obtained refinance from NABARD, EXIM, IDBI and SIDBI. These are liabilities with specific

maturities. Residual maturity of Refinance should be audited at the branches maintaining the respective G/L Heads as furnished in Annexure- II and submitted to the Regional Office so as to enable them to consolidate and

get it audited by regional auditors for the region as a whole. Amount reported in this statement should tally with G/L total (IDBI - 4310, SIDBI - 4315, NABARD - 4320, EXIM - 4330). Refinance obtained from NABARD is

maintained at Mumbai Main Office and therefore, other branches need not submit refinance availed from

NABARD even though they have extended credit under NABARD refinance scheme.

Similarly a few branches have rediscounted bills with IDBI, SIDBI etc. Such branches are advised to furnish residual maturity of bills rediscounted to their regional office in the enclosed format. Total amount reported

should tally with respective G/L amount (IDBI - 5220, SIDBI - 5225, Others - 5230).

Branches are requested to prepare the statements well in time so as to place the same before the branch auditor as and when they visit branches. List of refinance accounts and bills rediscounted containing balance, maturity

date and repayment schedule should be made available to auditors.

We once again reiterate that accuracy and consistency of data should be accorded top most priority and data submitted should tally with G/L balance as on closing date to enable us to get the final statement audited at BCC level.

Branches are requested to tally all the statements prepared in prescribed proforma (as given on last page) and get these audited by the statutory auditors before submission to the respective Regional Office.

RESIDUAL MATURITY OF ADVANCES

Branches are advised to initiate the following in ASCROM System based on December 2014 data and note the

same for March 2015 updation / Audit of Residual Maturity of Advances Statement generated from ASCROM:

A. Run option of ALM bucket distribution from processing->ALM bucket distribution. (After Quarterly data processing)

B. Supplementary Report for Credit for ALM purpose is to be generated from ASCROM System by selecting

the option: Reports ->Monthly ->Audit Reports -> ALM SUPPLEMENTARY ALM_BOB -> BRANCH.

C. This report comprises of Standard Advances (Part A), NPA (Part B) and Gross Advances classified into various buckets as per their Residual maturity, as per RBI Guidelines.

The parameters for classification of various segments of Advances, as per Residual Maturity into various Time

buckets, in ASCROM system are as under:

2

STANDARD ACCOUNTS

1. BP / BD Accounts (GL Codes 2160 to 2243): The outstanding balances of these accounts shall be classified

as per the BP / BD Due Date incorporated by Branches in ASCROM data during the data updation, into respective Time buckets by ASCROM system.

(i) Bills Purchased & Discounted (as in Return 22): GL Codes 2160,2165,2170,2175,2200,2220,2221,2222,2230,2231,2240,2241)

(ii) Foreign Currency Bills Purchased : GL Codes 2215 & 2225 (iii) Foreign Currency Bills Discounted : GL Code 2235

(iv) Post Shipment Credit Foreign Currency: GL Code 2243.

2. (a) CC / OD Accounts (GL Codes 2250, 2255, 2260,2265, 2270,2271,2272,2273,2275,2280,2290 & 2291): In respect of Cash Credit and Overdraft Accounts, the balance outstanding is bifurcated into Core

and Volatile portions as per thumb-rule basis of 80 % & 20 % respectively (i.e. 20 % of the Outstanding balance in CC / OD accounts shall be classified as volatile portion, into time bucket of 1 day and 80 % of

the outstanding balance shall be classified as Core portion, into time bucket of 1-2 years). The bottom of

the Supplementary Report for Credit ALM (Return 22) of ASCROM system has the remarks to the above effect.

(i) Cash Credit / Overdraft: GL Codes 2250, 2255, 2260, 2265, 2270,2271,2272,2273,2275,2280,2290 (ii) Packing Credit in Foreign Currency: GL Code 2291

(b) DL Accounts (GL Codes 2285, 2295 to 2344): In respect of Demand Loan Accounts, the balance

outstanding shall be classified into various time buckets, as per the Repayment Schedule details incorporated by branches in Account details of ASCROM data.

(i) Demand Loan: GL Codes 2295 to 2344 (ii) Foreign Currency Demand Loan: GL Code 2285 & 2341.

3. ALL OTHER LOAN ACCOUNTS-TERM LOANS (GL Code 2350 to 2410): The balance outstanding in respect of all term loan accounts shall be classified into various time buckets, as per the Repayment Schedule

details incorporated by branches in Account details of ASCROM data. (i) Term Loan: GL Codes all term Loan codes except 2385

(ii) Foreign Currency Term Loan: GL Code 2385.

As regards NPA accounts, the details of classification into respective time buckets are advised in point D.

C. Standard Advances (Part A) is reclassified into Bills group (Part I – GL Code 2245), CC/OD / DL group (Part II –

GL Code 2345) and Term Loans Group (Part III – GL Code 2445). The grouping of Standard Advances is as per our Closing Return No: 1, retaining the same GL Codes for verification by Auditors.

D. Gross NPA (Part B) is classified into –2- time buckets, as per RBI guidelines. The gross balance outstanding in

all substandard category NPAs is classified into 3-5 years time bucket and gross balance outstanding in all Doubtful and Loss category NPAs is classified into over 5 years time bucket.

E. Total Advances (Part A + Part B = GL Code 3040) of the ALM statement should tally with Master Summary 19

generated from ASCROM and also with Closing Return NO: 1.

The following are the main reasons for the differences between the Total Advances of Supplementary ALM Report and Master Summary of Advances 19, both generated from ASCROM:

Ø Minor differences occur due to rounding-off effect in installment amounts, in respect of Demand Loan /

Term Loan accounts, with high repayment periods, principal amounts and in branches having substantial

number of Demand Loan / Term Loan accounts.

Ø Irregular / abnormal repayment schedule details fed in ASCROM data viz., Repayment mode / no. of Installments / Principal amounts / Amount of installment in case of EMI Loans & Date of first installment

Ø Credit Balances in Loan accounts, not transferred on the Closing Date and incorporated in ASCROM data

as negative balances, so as to tally the balances.

3

Ø Non-updation or incorrect updation of repayment schedule in case of Ballooning (cash flow based) repayment.

Branches / Regions / Zones are advised to generate the Validation Reports on ALM from Validation menu of

ASCROM, for locating the errors and tallying the differences.

The details of Validation Reports on ALM made available in ASCROM system are furnished below

DATA VERIFICATION AND VALIDATION FOR ALM AND RISK ANALYSIS:

Branches should invariably double check the following details thoroughly for all Demand Loans/ Term Loans (All accounts above 5 lacs):

Ø Disbursement Date Ø Principal Amount

Ø Rate of Interest Ø Mode of Repayment (i.e. monthly, quarterly, half-yearly, equated monthly and so on)

Ø No. Of Installments Ø Amount of Installment (in case of Equated)

Ø First Installment due date Ø Interest Rate Type (i.e. Fixed or Floating)

Ø Rating To verify these details choose Validation->Expert Validation Wizard->select Branch->give range as

from 500000 to (blank

* Ascrom 5.1.2 should be read as Ascrom 7.1.4

Scan the list and note the Customer Number, GL sub-code & Ac-id for records where correction is required

Carry out the corrections through menu Quarterly Updation->Quarterly Data Updation->branch

selection->Customer Accounts>Format B>Bill Details(second Tab)

On selection the following SCREEN appears, where user can select the error record by using <Search> option and giving the AC-ID for the account in which correction/change is required.

4

On entering the AC-ID, the details pertaining to the account is displayed on the screen. On this screen the details like Bill Purchase Date, Bill Due Date can be corrected.

In case of DL/TL Accounts, Disbursement Date, Principal Amount, Mode of Repayment,

Number of Installment, Amount of Installment (in case of EMI) and first installment due date should be verified.

To verify these details choose Validation->Expert Validation Wizard->select Branch->give range as

from 500000 to (blank)

* Ascrom 5.1.2 should be read as Ascrom 7.1.4

5

Carry out the corrections through menu Quarterly Updation->Quarterly Data Updation->branch

selection->Customer Accounts>Format D>TL/DL Details(second Tab)

On choosing this option user will get the following screen

On this screen Disbursement Date, Principal Amount, Mode of Repayment, Number of Installment, Amount of

Installment (in case of EMI) and first installment due date fields are available for corrections if any.

Total No. Of

Installments. Mode of Repayment (i.e.

1 for Monthly, 2 for

Qtly etc.)

6

In case of Changes in Interest Type (Fixed/Floating) and Interest Rate user should choose Monthly Updation->Monthly Data Updation->Branch->Search->AC-ID

The following Screen will appear and corrections regarding Interest Type(Fixed/Floating) and Interest Rates can be made here.

The verification and corrections in respect of Interest rates should be done for CC/OD accounts as well.

CREDIT RATING:

In case of below 25 lacs accounts

If correction is required in Credit Rating then same has to be done through--- Quarterly Updation->Quarterly Data Updation->Branch->Customer Details>Format A>Customer Advance Profile(second Tab)>Cr

Score

Interest rate Type (fixed

or floating)

Interest

rate

Credit

Score

7

in case of accounts above 25 lacs-Customer Rating) and for Facility Rating through

Quarterly Updation->Quarterly Data Updation->Branch->Customer Details>Format A>Customer Id

Profile>Crisil Rating Data

Quarterly Updation->Quarterly Data Updation->Branch->Customer Accounts>Format (A,B,C

)>Advance AC Detail>Additional Information for Basel-II>Facility Rating.

Customer Rating

Facility

Rating

8

VALIDATION OF ALM STATEMENT ON ADVANCES: The following validation reports are made available in ASCROM for correction / validation of Supplementary Report

on ALM and also verification of AUDITORS:

1. Reports>Monthly Module Reports>RBI Rtns ->ALM>ALM Worksheet: This Report comprises of

Account wise Residual Maturity Classification, arranged GL Code wise and computer code wise, as indicated in ALM Report of Advances.

Account wise Balance outstanding shall be tallying with the aggregate amount of Bucket wise amounts and

accordingly the aggregate amount of this Report shall tally with ALM Statement on Advances.

This Report is used for tallying the Supplementary ALM Report by locating the Accounts wherein the Balance outstanding is not tallying with the aggregate amount as per Residual Maturity classification and

rectifying the same in ASCROM Data.

Branches are advised to generate the above Report for Validation and tally the Supplementary ALM statement with Master Summary of Advances (MS 19)

Branches should check for accounts with errors in Repayment Schedule if any as stated in point E above, correct

the data, reprocess the data and generate Supplementary ALM Report afresh, for verifications of Auditors.

The pattern of Classification of Advances as per Residual maturity as stated above in ASCROM system, is same for

Branch / Region / Zone. ALM Statement generated through ASCROM at Branch / Region / Zone indicates Gross Advances and the same is to be tallied with Master Summary of Advances (MS 19) / Closing Return No; 1 at all

levels.

REGIONS & ZONES – SUPPLEMENTARY ALM REPORT FOR CREDIT:

Regions and Zones are advised to generate the following reports from December 2012 data of ASCROM System, as a preparatory exercise for March 2014 Audit:

1. Supplementary Report for Credit for ALM purpose is to be generated from ASCROM System by selecting

the option:

9

Reports ->Monthly ->Audit Reports -> SUPPLEMENTARY ALM -> Region/Zone.

2. Audit Verification Report for Supplementary Report (through option: Reports>Monthly Module

Reports>AUDIT Reports->ALM SUPPLEMENTARY REPORT FOR AUDITOR VERIFICATION

The aggregate amount in both the above reports should match.

The above procedure should invariably be adopted in March 2013, after completion of ASCROM Data updation for Auditing of ALM Report on Advances.

Our ASCROM CELL, BCC shall be issuing detailed guidelines in this matter as part of instructions on ASCROM updation for Annual Closing as of March 2014.

For reporting of break up of domestic foreign currency Assets and Liabilities, Return will be generated for the Bank as a whole through centralized system at corporate level and the same shall be audited at the corporate level.

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ANNEXURE - XI


BULLET POINTS ON CHANGES AS PERCEIVED IN CURRENT YEAR ENDING 31.03.2015 AS COMPARED TO 31.03.2014

1. The following Certificates are deleted/added which needs to be certified by the Statutory Branch Auditors also.

· Certificate No. 11 Export Subvention Claim in respect of Rupee-

Export Credit is discontinued.

· Certificate No. 15 (b) is new addition from current year.

2. Reversal of interest in case of an advance account downgraded into non performing category will be done by the system. The branch will be required to issue 14 / 14 D but need not pass the entry in the branch books for the interest reversal.

3. Depreciation on Fixed Assets is now based on remaining useful life of Assets as per companies Act 2013. Depreciation is applied centrally at Data centre level.

4. Calculation of Provision required for Unhedged Foreign Currency Exposure.(Annexure-XV)

*********************************************************************************************

1

Annexure -XII

RESTRUCTURING OF ADVANCES ACCOUNTS:

You are aware that banks are required to make provision for future interest sacrifice in respect of advances restructured on or before 26-08-2008 and also make provision for diminution in the fair value of advance, for all the advance accounts restructured on or after 27-08-2008 as per the extant RBI guidelines. At the time of closing of accounts for financial year 2008-09 and 2009-10 detailed guidelines in this regard had been issued by Credit Monitoring Department, BCC Mumbai vide circular no. BCC: BR: 101:102 dated 01-04-2009 and closing circular no. BCC: BR: 102/66 dated 02-03-2010.

As per RBI guidelines the interest sacrifice/diminution in the fair value may be re-computed on each balance sheet date till satisfactory completion of all repayment obligations and full repayment of the outstanding in the account, so as to capture the changes in the fair value on account of changes in BPLR/Base Rate, term premium and credit category of the borrower. Consequently, Banks may provide for the shortfall in provision or reverse the amount of excess provision held in the distinct account. In view of above we have to:

· Re-compute amount of future interest sacrifice as on 31-03-2015 in respect of advances restructured on or before 26-08-2008.

· Re-compute amount of diminution in fair value as on 31-03-2015 in respect of advances restructured during 27-08-2008 to 31-12-2014.

· Compute amount of diminution in fair value as on 31-03-2015 in respect of advances restructured during 01-01-2015 to 31-03-2015.

I. Re-computation of interest sacrifice in the advance accounts restructured on or before 26-08-

2008 (Including re-computation of interest sacrifice in the existing / old restructured accounts prior to 31.03.2008):

Branches are advised to:

(a) Re-compute the amount of future interest sacrifice as on 31.03.2015 in respect of all the existing advance accounts restructured on or before 26-08-2008, taking 31.03.2015 as the notional cut-off date.

(b) Submit the above information on the amount of sacrifice recomputed as per Annexure-I (A).

(c) Ensure that the information i.e. no. of borrowers, amount outstanding and amount of

interest sacrifice as stated in the Annexure I (A) tally with the information given / reported (Asset classification wise) in the Certificate – 8, (part A-I & part A-II) . The certificate as well as the statement i.e. Annexure I (A) should also to be certified by the branch Statutory Auditors. Illustrative examples of typical accounts which were restructured on or before 26-08-2008 where the amount of sacrifice is re-computed as of 31.03.2015 are enclosed (Annexure III A & III B) for guidance of branches.

II. Re-computation of sacrifice on diminution in the fair value in the advance accounts restructured on / after 27.08.2008 till 31-03-2015 during FY 2008-09, FY 2009-10, FY 2010-11, FY 2011-12, FY 2012-13 & FY 2013-14 and during 01-04-2014 to 31-12-2014 and computation of diminution in fair value in respect of advances restructured during 01-01-2015 to 31-03-2015:

2

1. For this purpose, amount of the sacrifice on account of diminution in the fair value

of the restructured Loan account before and after restructuring should be re-computed/computed as under:

A. Future cash flows of the loan account (including WCTL / FITL) as on 31-03-2015 based on pre-restructuring terms to be arrived at as under:

· Amount of installments of the principal amount due in coming years based on the original repayment schedule (i.e. repayment schedule before restructuring), plus

· Interest due in coming years at the pre-restructured document Rate.

· The above future cash flow to be discounted by applying the ‘discount rate’ equivalent to the BPLR/Base Rate as on 31.03.2015 plus appropriate term and credit risk premium for the borrower as per credit rating applicable on 31-03-2015, to arrive at the present value.

Minus

B. Future cash flows of the restructured loan account (including WCTL / FITL) as on 31-03-2015 based on post-restructuring terms to be arrived at as under:

· Amount of installments of the principal amount due in coming years after restructuring, based on the restructured repayment schedule (i.e. revised repayment schedule as per the restructuring), plus

· Interest due in coming years after restructuring at the restructured interest rate.

· The above future cash flow to be discounted by applying the ‘discount rate’ equivalent to the Base rate BPLR/Base Rate as on 31.03.2015 plus appropriate term and credit risk premium for the borrower as per credit rating applicable on 31-03-2015, to arrive at the present value.

C. The difference in the above present values i.e. (A) minus (B) is the diminution in the

fair value of the loan account and is the sacrifice amount for the restructured loan account.

D. Discounting Factor Table at different Discount Rates has already been provided in our

Corporate office circular No. BCC: BR: 95/59 dated 18.02.2003. A copy of the same is again furnished at Annexure II for ready reference.

2. Amount of sacrifice on diminution in the fair value of the restructured Working Capital

facilities be computed / arrived at as per following: The diminution in the fair value of the restructured Cash credit / Overdraft accounts may be computed as indicated in the above para meant for Loan account, reckoning the higher of the outstanding amount or the limit sanctioned as on date of restructuring as the principal amount and taking the repayment tenor of the advance as one year. Branches are required to compute/re-compute diminution in fair value for arriving at the sacrifice amount as stated in para 1 & 2 above individually for all advance accounts restructured on / after 27.08.2008, where total dues to Bank as on date of restructuring is of Rs. 1.00 crore & above

3

To facilitate the branches, illustrative examples (in three different cases) for computation of diminution in fair value in the advance account with total dues to Bank of Rs. 1 crore & above restructured on / after 27.08.2008 is given in Annexure – IV. In respect of all the advance accounts restructured on / after 27.08.2008 and where the total dues to Bank is below Rs. 1.00 crore as on date of restructuring, Branches are to notionally compute the diminution in fair value and calculate sacrifice amount for provision at 5% of total exposure in respect of the advance account restructured.

In view of above, branches are required to re-compute interest sacrifice in respect of advances restructured on or before 26-08-2008, re-compute diminution in fair value in respect of all advance accounts restructured on/after 27-08-2008 till 31-12-2014 and to compute diminution in fair value in respect of all advance accounts restructured during 01-01-2015 to 31-03-2015, where total dues to bank are Rs.1.00 crore and above. Since accounts restructured till 31-12-2014 were already identified at the time of Annual closing of accounts for FY 2008-09, FY 2009-10, FY 2010-11, FY 2011-12, FY 2012-13 & FY 2013-14 and quarterly closing of June 2014, September 2014 and December 2014 quarters, as such while re-computing the interest sacrifice/diminution in the fair value please ensure that interest sacrifice/diminution in the fair value of all these identified restructured accounts have been recomputed unless the accounts have been fully settled. In case any advance account restructured on or before 31-12-2014 has been fully settled by 31-03-2015, details of the same be furnished in respective annexures to Certificate 8.

3. Special provision against the unsecured portion of WCTL: a) As per the RBI’s guidelines issued on 02.01.2009, in case of Standard and Sub-standard

restructured accounts (restructuring done on / after 02.01.2009 till 30-06-2009) where full

security cover is not available for WCTL, provision is to be made against the unsecured portion of the WCTL, as under, to cover the account under Special Regulatory Treatment:

a. Standard Assets : 20%; b. Sub-standard Assets: 20% during the first year and to be increased by 20% every

year thereafter until the specified period* (i.e. one year after the first payment is due under the terms of restructuring);

b) If the account is not eligible for up gradation after the specified period*, the unsecured

portion will attract provision of 100%. c) Branches to follow the guidelines and to advise the amount of special provision to be

provided at HO level in case of unsecured WCTL on restructuring of advance account, (with account-wise details as per Annexure I-M), to their respective Regional Office for onward submission of the information to ZO / BCC.

*Refers to the period of one year from the first payment of interest or principal, whichever is later, on the credit facility with longest period of moratorium under the terms of Restructuring package

4. Submission of information – Certificate 8 must be duly tallied with the ASCROM Reports Branches are to furnish the summary of restructured advances in Certificate 8 and along-with complete details as per following annexure to certificate 8, all duly certified by branch auditors, to the Regional Authority immediately after audit is over.

4

· Annexure I (A): Statement of all advances restructured on or before 26-08-2008 where provision for interest sacrifice is to be re-computed as on 31-03-2015.

· Annexure I (B): Consolidated position as on 31-03-2015 in respect of the Advance accounts restructured during the period 27-08-2008 to 31-03-2009 with total dues to Bank is less than Rs.1.00 crore at the time of Restructuring.

· Annexure I ( C ) - Statement of advances restructured during the period 27-08-2008 to 31-03-2009 where total dues to Bank is Rs.1.00 crore & above and where sacrifice amount is to be re-computed based on diminution in fair value of advance as on 31-03-2015.

· Annexure I (D ) - Consolidated position as on 31-03-2015 in respect of the Advance accounts restructured during the period 01-04-2009 to 31-03-2010 with total dues to Bank is less than Rs.1.00 crore at the time of Restructuring.

· Annexure I (E ) - Statement of advances restructured during the period 01-04-2009 to 31-03-2010 where total dues to Bank is Rs.1.00 crore & above and where sacrifice amount is to be re-computed based on diminution in fair value of advance as on 31-03-2015.

· Annexure I (F ) - Consolidated position as on 31-03-2015 in respect of the Advance accounts restructured during the period 01-04-2010 to 31-03-2011 with total dues to Bank is less than Rs.1.00 crore at the time of Restructuring.

· Annexure I (G) - Statement of advances restructured during the period 01-04-2010 to 31-03-2011 where total dues to Bank is Rs.1.00 crore & above and where sacrifice amount is to be re-computed based on diminution in fair value of advance as on 31-03-2015.

· Annexure I (H ) - Consolidated position as on 31-03-2015 in respect of the Advance accounts restructured during the period 01-04-2011 to 31-03-2012 with total dues to Bank is less than Rs.1.00 crore at the time of Restructuring.

· Annexure I (I) - Statement of advances restructured during the period 01-04-2011 to 31-03-

2012 where total dues to Bank is Rs.1.00 crore & above and where sacrifice amount is to be re-computed based on diminution in fair value of advance as on 31-03-2015.

· Annexure I (J ) - Consolidated position as on 31-03-2015 in respect of the Advance accounts restructured during the period 01-04-2012 to 31-03-2013 with total dues to Bank is less than Rs.1.00 crore at the time of Restructuring.

· Annexure I (K) - Statement of advances restructured during the period 01-04-2012 to 31-03-2013 where total dues to Bank is Rs.1.00 crore & above and where sacrifice amount is to be re-computed based on diminution in fair value of advance as on 31-03-2015.

· Annexure I (L ) - Consolidated position as on 31-03-2015 in respect of the Advance accounts restructured during the period 01-04-2013 to 31-03-2014 with total dues to Bank is less than Rs.1.00 crore at the time of Restructuring.

· Annexure I (M) - Statement of advances restructured during the period 01-04-2013 to 31-03-2014 where total dues to Bank is Rs.1.00 crore & above and where sacrifice amount is to be re-computed based on diminution in fair value of advance as on 31-03-2015.

· Annexure I (N) - Consolidated position as on 31-03-2015 in respect of the Advance accounts with the total dues to Bank is less than Rs. 1.00 crore and were restructured during the period 01-04-2014 to 31.12.2014.

5

· Annexure I (O): Statement of Advances with total dues to bank is Rs. 1/- crore & above, and restructured during the period 01-04-2014 to 31-12-2014, and where sacrifice amount is to be re-computed based on diminution in fair value of advance as on 31-03-2015.

· Annexure I (P) - Consolidated position as on 31-03-2015 in respect of the Advance accounts with the total dues to Bank is less than Rs. 1.00 crore and were restructured during the period 01-01-2015 to 31.03.2015.

· Annexure I (Q): Statement of Advances with total dues to bank is Rs. 1/- crore & above, and restructured during the period 01-01-2015 to 31-03-2015, and where sacrifice amount is to be re-computed based on diminution in fair value of advance as on 31-03-2015

· Annexure I (R): Special provision to be provided at HO level in respect of unsecured portion of WCTL on restructuring of advance account.

5. In order to ensure accuracy in calculation of the sacrifice Regional Heads are requested to

ensure that the required provision for interest sacrifice/diminution in fair value of advance in all the restructured advance accounts at the branches are properly calculated. Regional offices will also submit consolidated Certificate 8 along with Annexure I (A) to I (R) and calculation sheet of interest sacrifice/diminution in fair value of restructured accounts of Rs.1.00 crore & above duly certified by statutory auditors to respective Zonal office for onward submission to the concerned authority at BCC.

6. Zonal offices should get the statements and the certificate -8 along with its annexures

consolidated for the Zone and submit the consolidated Certificate 8 with Annexures [ I (A) to I (R)] / statements duly certified by the concerned Central Statutory Auditors for the Zone to Credit Monitoring Department, BCC with a copy to Corporate Accounts & Taxation Department, BCC, Mumbai.

Zonal office to ensure submission of future interest sacrifice/diminution in fair value working sheets of each restructured account of Rs.1.00 crore and above to concerned Functional Authority (Wholesale / SME / Retail / Rural & Agrl.) at Baroda Corporate Centre for their verification.

Zonal office to ensure that the Certificate 8 along with Annexures /statement of their Zone reach the authorities at BCC immediately after audit is over, with in prescribed time schedule. Based on the above information on the recomputed / computed sacrifice amount for the restructured advance accounts, bank at H.O. level will provide for fresh provision for the new restructured accounts and for shortfall in provision or reverse the amount of excess provision held in the distinct existing restructured advance account, as the case may be.

NOTES: 1. Branches to note that no entry for the provision on account of interest sacrifice / diminution

in the fair value of the restructured accounts will be passed at branch level.

2. If no account is restructured up to 31-03-2015, NIL Certificate-8 is to be submitted.

3. One borrower may have more than one account. As such diminution in fair value as per above to be calculated in respect of accounts restructured only. However, for the purpose of disclosure outstanding in all the facilities also to be furnished

in Certificate -8 & annexure.

6

B. RESTRUCTURING OF ADVANCES ACCOUNTS (DISCLOSURE REQUIREMENT):-

RBI vide its circular no. RBI/2012-13/409 - BOD.BP.BC.No.80/21.04.132/2012-13 dated 31.01.2013 has advised that banks should henceforth disclose in their published Annual Balance Sheets, under "Notes on Accounts", information relating to number and amount of advances restructured, and the amount of diminution in the fair value of the restructured advances as per the format given in the Annex - I. Detailed instructions relating to the disclosure are as under:

1. Instructions – For the purpose of disclosure in the above Format, the following instructions are

required to be followed:

(i) Advances restructured under CDR Mechanism, SME Debt Restructuring Mechanism and

other categories of restructuring should be shown separately.

(ii) Under each of the above categories, restructured advances under their present asset

classification, i.e. standard, substandard, doubtful and loss should be shown separately.

(iii) Under the ‘standard’ restructured accounts; accounts, which have objective evidence of

no longer having inherent credit weakness, need not be disclosed. For this purpose, an

objective criteria for accounts not having inherent credit weakness is discussed below:

a. As regards restructured accounts classified as standard advances, in view of the inherent

credit weakness in such accounts, banks are required to make a general provision

higher than what is required for otherwise standard accounts in the first two years from

the date of restructuring. In case of moratorium on payment of interest / principal after

restructuring, such advances attract the higher general provision for the period covering

moratorium and two years thereafter.

b. Further, restructured standard unrated corporate exposures and housing loans are also

subjected to an additional risk weight of 25 percentage point with a view to reflect the

higher element of inherent risk which may be latent in such entities (cf. paragraph 5.8.3 of

circular DBOD.No.BP.BC.90/20.06.001/2006-07 dated April 27, 2007 on ‘Prudential

Guidelines on Capital Adequacy and Market Discipline - Implementation of the New

Capital Adequacy Framework’ and paragraph 4 of circular

DBOD.No.BP.BC.76/21.04.0132/2008-09 dated November 3, 2008 on ‘Prudential

Guidelines on Restructuring of Advances by Banks’ respectively).

c. The aforementioned [(a) and (b)] additional/ higher provision and risk weight cease to

be applicable after the prescribed period if the performance is as per the rescheduled

programme. However, the diminution in the fair value will have to be assessed on each

balance sheet date and provision should be made as required.

d. Restructured accounts classified as sub-standard and doubtful (non-performing)

advances, when upgraded to standard category also attract a general provision higher

than what is required for otherwise standard accounts for the first year from the date of up-

gradation, in terms of extant guidelines on provisioning requirement of restructured

accounts. This higher provision ceases to be applicable after one year from the

7

date of upgradation if the performance of the account is as per the rescheduled

programme. However, the diminution in the fair value will have to be assessed on each

balance sheet date and provision made as required.

e. Once the higher provisions and/or risk weights (if applicable and as prescribed from

time to time by RBI) on restructured standard advances revert to the normal level on

account of satisfactory performance during the prescribed periods as indicated above,

such advances, henceforth, would no longer be required to be disclosed by banks as

restructured standard accounts in the “Notes on Accounts” in their Annual Balance Sheets.

However, banks should keep an internal record of such restructured accounts till the

provisions for diminution in fair value of such accounts are maintained.

iv. Disclosures should also indicate the intra category movements both on up gradation of

restructured NPA accounts as well as on slippage. These disclosures would show the

movement in restructured accounts during the financial year on account of addition, up

gradation, down gradation, write off, etc.

v. While disclosing the position of restructured accounts, banks must disclose the total

amount outstanding in all the accounts / facilities of borrowers whose accounts

have been restructured along with the restructured part or facility. This means that

even if only one of the facilities / accounts of a borrower has been restructured, the

bank should also disclose the entire outstanding amount pertaining to all the facilities/

accounts of that particular borrower.

vi. Up gradation during the year (Sl No. 3 in the Disclosure Format) means movement of

‘restructured NPA’ accounts to ‘standard asset classification from substandard or

doubtful category’ as the case may be. These will attract higher provisioning and / or

risk weight’ during the ‘prescribed period’ as prescribed from time to time. Movement from

one category into another will be indicated by a (-) and a (+) sign respectively in the relevant

category.

vii. Movement of Restructured standard advances (Sr. No. 4 in the Disclosure Format) out

of the category into normal standard advances will be indicated by a (-) sign in the column

“Standard”.

viii. Down gradation from one category to another would be indicated by (-) ve and (+) ve sign

in the relevant categories.

ix. Up gradation, down gradation and write-offs are from their existing asset classifications.

x. All disclosures are on the basis of current asset classification and not ‘pre-restructuring’ asset classification.

2. Submission – Branches are required to submit the duly audited disclosure to Regional Office

along with other audited closing returns. On consolidation at Regional level and Zonal level, duly

audited Disclosure for the zone is to be submitted to the concerned authority at BCC.

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ce

Ou

tsta

nd

ing

o

ut

of

th

e

loa

n

2.0

0

of

Rs.1

0.0

0 c

rore

s

Rep

aym

en

t p

eri

od

(y

ears

) f

rom

6

Rep

aym

en

t p

eri

od

(y

ears

)

6

Res

idu

al p

eri

od

o

f r

ep

aym

en

t o

f

1

01.0

4.2

007

lo

an

(Y

ea

rs)

BP

LR

a

s o

n

28.0

1.2

00

5

10.5

0%

B

PL

R a

s o

n

24.0

2.2

00

7

12.5

0%

B

PL

R a

s o

n

31.0

3.2

01

5

14.5

0%

Ap

plica

ble

R

ate

o

f In

tere

st

A

pp

lica

ble

R

ate

o

f In

tere

st

A

pp

lic

ab

le

Ra

te

of

In

tere

st

(A

R)

as

(AR

) a

s

pe

r C

red

it R

ati

ng

(AR

) a

s

pe

r C

red

it R

ati

ng

pe

r C

red

it

Rati

ng

2%

ab

ov

e B

PL

R

12.5

0%

2

%

ab

ov

e B

PL

R

14.5

0%

2

%

ab

ov

e B

PL

R

16.5

0%

Co

ntr

acte

d

Rate

o

f I

nte

res

t

Co

ntr

acte

d

Rate

o

f

Co

ntr

acte

d

Rate

o

f I

nte

res

t (

CR

)

(CR

) l

inked

to

B

PL

R

In

tere

st(

CR

) l

inke

d to

B

PL

R

lin

ked

to

B

PL

R

0.5

0%

ab

ov

e B

PL

R

11.0

0%

0.5

0%

ab

ov

e B

PL

R

13.0

0%

0.5

0%

b

elo

w B

PL

R

14.0

0%

Pro

po

se

d

/ R

es

tru

ctu

red

ra

te

10

% (f

ixed

)

Restr

uctu

red

ra

te o

f i

nte

rest

10

% (f

ixed

)

o

f i

nte

res

t

Ple

ase

N

ote

:

Fig

ure

s o

f B

PL

R, R

isk P

rem

ium

a

re

as

su

me

d

for

th

e p

urp

os

e o

f i

llu

str

ati

on

.

An

ne

xu

re -

III

(a)

(Co

nt.

) R

ec

om

pu

tati

on

o

f i

nte

rest

sa

cri

fice

a

s

on

3

1.0

3.2

01

5 in

a

n

ex

isti

ng

a

cc

ou

nt,

re

str

uctu

red

p

rio

r t

o

31.0

3.2

00

8

(Rs

. i

n

cro

re)

2

00

9-1

0

20

10

-11

2

01

1-1

2 2

01

2-2

01

3

20

13

-20

14

2

01

4-2

01

5

TO

TA

L

Op

en

ing

B

ala

nc

e

10

.00

9

.00

8

.00

6

.00

4

.00

2

.00

Rep

ay

me

nt

of

Pri

nc

ipa

l

1

.00

1

.00

2

.00

2

.00

2

.00

2

.00

Clo

sin

g

Bala

nc

e

9.0

0

8.0

0

6.0

0

4.0

0

2.0

0

0.0

0

Av

era

ge

B

ala

nc

e

9.5

0

8.5

0

7.0

0

5.0

0

3.0

0

1.0

0

Inte

res

t a

s

pe

r c

on

tra

cte

d

rate

(1

4.0

0%

) o

n

av

era

ge

b

ala

nc

e

(a)

0

.14

Dis

co

un

tin

g

fac

tor

(A

R

of

16

.50

%

as

o

n

31

.03

.20

15

)

(b)

0

.85

47

PV

* o

f t

he

in

tere

st

am

ou

nt

as

o

n

31

.03

.20

15

{c=

(a)*

(b)}

0.1

2

0.1

2

Inte

res

t a

s

pe

r r

es

tru

ctu

red

ra

te

(10

%)

on

a

ve

rag

e

ba

lan

ce

(d

)

0.1

0

Dis

co

un

tin

g

fac

tor

(A

R

of

16

.50

%

as

o

n

31

.03

.20

15

) (e

)

0.8

54

7

PV

* o

f t

he

in

tere

st

am

ou

nt

as

o

n

31

.03

.20

15

{f

=

(d)

*

(e)

}

0

.09

0.0

9

Am

ou

nt

of

in

tere

st

sa

cri

fic

e

as

o

n

31

.03

.20

15

(c

) -

(f

)

0

.03

0.0

3

* P

V =

P

rese

nt

Va

lue

CA

SE

-

II

:

Ad

va

nc

e

Ac

co

un

t (

wit

h

tota

l d

ues

o

f R

s.

1

cro

re

&

ab

ov

e)

re

str

uc

ture

d

be

twe

en

0

1.0

4.2

00

8

to

26

.08

.20

08

w

ith

R

ed

uc

tio

n

in

the

R

ate

of

Inte

res

t.

An

nexu

re -

III (b

) H

YP

OT

HE

TIC

AL

IL

LU

ST

RA

TIO

N F

OR

C

AL

CU

LA

TIO

N O

F IN

TE

RE

ST

S

AC

RIF

ICE

IN

T

HE

A

CC

OU

NT

R

ES

TR

UC

TU

RE

D

BE

TW

EE

N

01.0

4.2

008 T

O

26.0

8.2

008

(Rs

. in

c

rore

)

Te

rm

Lo

an

s

an

cti

on

ed

o

n

2

8.0

4.2

00

7

Te

rm

Lo

an

re

str

uc

ture

d

on

1

5.0

6.2

00

8

Sta

tus

a

t t

he

ti

me

o

f

Sta

tus

a

t t

he

ti

me

o

f

Sta

tus

a

t t

he

ti

me

o

f c

alc

ula

tio

n

31

.03

.20

13

sa

nc

tio

n

as

o

n

28

.04

.20

07

res

tru

ctu

rin

g

as

o

n

15

.06

.20

08

o

f i

nte

res

t s

ac

rifi

ce

(Bala

nc

e s

he

et

da

te)

Ac

tua

l R

ep

ay

me

nt

Rec

eiv

ed

1

.00

du

rin

g

01

-08

-07

to

1

4-0

6-0

8

(-1

0-

in

sta

lme

nts

)

Am

ou

nt

of

Lo

an

6.0

0

Ou

tsta

nd

ing

A

mo

un

t o

f L

oa

n

as

5.0

0

Ba

lan

ce

O

uts

tan

din

g

ou

t o

f t

he

1

.10

o

n

15

.06

.20

08

ori

gin

al

Lo

an

a

mo

un

t o

f R

s.6

.00

cro

res

Rep

ay

me

nt

pe

rio

d

(Mo

nth

s)

6

0

Rep

ay

me

nt

pe

rio

d

un

de

r

5

0

Re

sid

ua

l p

eri

od

o

f r

ep

ay

me

nt

of

1

1

co

mm

en

cin

g fr

om

0

1-0

8-2

00

7

Res

tru

ctu

rin

g

(Mo

nth

s)

lo

an

u

nd

er

re

str

uc

turi

ng

(M

on

ths

)

Mo

nth

ly i

ns

talm

en

t a

mo

un

t

0.1

0

Mo

nth

ly In

sta

lme

nt

to

c

om

me

nc

e

0

.10

fro

m

01

-01

-20

09

(U

nd

er

Res

tru

ctu

rin

g)

BP

LR

a

s

on

2

8.0

4.2

00

7

1

3.2

5%

B

PL

R

as

o

n

15

-06

-20

08

1

2.7

5%

B

PL

R

as

o

n

31

.03

.20

15

1

4.5

0%

Ap

pli

ca

ble

R

ate

o

f I

nte

res

t

Ap

pli

ca

ble

R

ate

o

f I

nte

res

t (

AR

)

Ap

pli

ca

ble

R

ate

o

f I

nte

res

t (

AR

) a

s

(AR

) a

s

pe

r C

red

it

Rati

ng

as

p

er

Cre

dit

R

ati

ng

pe

r C

red

it

Rati

ng

2%

a

bo

ve

B

PL

R

1

5.2

5%

3

%

ab

ov

e

BP

LR

1

5.7

5%

3

.25

%

ab

ov

e

BP

LR

17

.75

%

Co

ntr

ac

ted

R

ate

o

f

Co

ntr

ac

ted

(D

oc

.)

Rate

o

f

Co

ntr

ac

ted

(D

oc

.) R

ate

o

f I

nte

res

t

Inte

res

t(C

R)

lin

ke

d

to

BP

LR

In

tere

st(

CR

) l

ink

ed

to

B

PL

R

(C

R)

lin

ke

d

to

BP

LR

2%

a

bo

ve

B

PL

R

1

5.2

5%

2

%

ab

ov

e

BP

LR

1

4.7

5%

2

.25

%

ab

ov

e

BP

LR

16

.75

%

Pro

po

se

d

/ R

es

tru

ctu

red

ra

te

of

10

.25

%

Res

tru

ctu

red

ra

te

of

in

tere

st

:

1

1.0

0%

in

tere

st

:

2.5

0%

b

elo

w

BP

LR

3.5

0%

b

elo

w

BP

LR

Ple

as

e

No

te :

Fig

ure

s

of

BP

LR

, R

isk

P

rem

ium

a

re

as

su

me

d

for

th

e

pu

rpo

se

o

f illu

str

ati

on

.

An

nexu

re

- III (

b)

(Co

nt.

)

Re-c

om

pu

tati

on

o

f i

nte

rest

sa

cri

fice

as

on

3

1.0

3.2

01

5 in

an

ac

co

un

t, re

str

uc

ture

d

on

1

5.0

6.2

00

8 (i

.e. A

fter

31.0

3.0

8 b

ut

pri

or

to

27

.08.2

00

8)

(R

s.

in

cro

re)

(A)

Ba

se

d

on

O

rig

ina

l S

an

cti

on

(P

re-r

estr

uctu

red

te

rms)

2010-1

1

20

11

-12

2

01

2-1

3

20

13

-14

2

01

4-1

5

TO

TA

L

Op

en

ing

B

ala

nce

(W

ith

o

ve

rdu

e o

f R

s.

0.7

0 cro

re a

s

on

3

1.0

3.2

01

5)

4.7

0

3.5

0

2.3

0

1.7

0

1.1

0

Re

pa

ym

en

t o

f P

rin

cip

al

1.2

0

1.2

0

0.6

0

0.6

0

0.4

0

Re

pa

ym

en

t o

f p

rin

cip

le o

ve

rdu

e

0

.70

Clo

sin

g B

ala

nce

a

s o

n 3

1st

Ma

rch

3.5

0

2.3

0

1.7

0

1.1

0

0.0

0

Av

era

ge

B

ala

nce

2

.55

2

.00

1

.40

0

.20

Inte

rest

a

s p

er

pre

-re

stru

ctra

l D

oc.

/

co

ntr

ac

ted

ra

te

(16

.75

%)

on

a

ve

rag

e

ba

lan

ce (

a)

0.0

3

Dis

co

un

tin

g

facto

r (

AR

o

f 1

7.7

5%

a

s

on

3

1.0

3.2

01

5)

(b)

0.8

49

3

PV

*

of

th

e

inte

rest

am

ou

nt

as o

n 3

1.0

3.2

01

5

{c=

(a)*

(b)}

0

.08

0

.08

(B)

Ba

se

d

on

R

estr

uctu

red

S

an

cti

on

(P

ost-

restr

uctu

red

te

rms)

Op

en

ing

B

ala

nce

4.7

0

3.5

0

2.3

0

1.7

0

1.1

0

Re

pa

ym

en

t o

f P

rin

cip

al

1.2

0

1.2

0

0.6

0

0.6

0

1.1

0

Clo

sin

g B

ala

nce

3.5

0

2.3

0

1.7

0

1.1

0

0

Av

era

ge

B

ala

nce

2

.90

2

.00

1

.40

0

.55

Inte

rest

a

s p

er

Re

str

uct

ure

d

rate

(1

1.0

0%

) o

n

ave

rag

e

ba

lan

ce

(a)

0.0

6

Dis

co

un

tin

g

facto

r (

AR

o

f 1

7.7

5%

a

s

on

3

1.0

3.2

01

5)

(b)

0.8

49

3

PV

*

of

in

tere

st

am

ou

nt

as

on

3

1.0

3.2

01

5

{d

=(a

)*(b

)}

0.0

5

0.0

5

Am

ou

nt

of

In

tere

st

sa

cri

fice

a

s

on

3

1.0

3.2

01

5

(c)

-

(d

)

0

.03

*P

V

=

Pre

se

nt

Va

lue

o

f f

utu

re ca

sh

fl

ow

s

An

ne

xu

re -

IV

CA

SE

-

III

:

Ad

va

nc

e

Ac

co

un

t (

wit

h

tota

l d

ue

s

of

Rs.

1 c

rore

& a

bo

ve

) re

str

uc

ture

d o

n o

r a

fte

r 2

7.0

8.2

00

8

B

efo

re R

est

ruct

uri

ng

A

fte

r R

est

ruct

uri

ng

Na

me

of

the

Bo

rro

we

r D

ISC

OU

NT

ING

FA

CT

OR

in

H -

2

14

.25

%

Cre

dit

Ra

tin

g C

R

6 W

B

N

ew

Re

pa

ym

en

t

Lo

an

Am

t. I

n

D -

4

50

00

00

00

0

LO

AN

AM

T i

n L

- 4

50

00

00

00

0

R

OI

- in

D -

5

13

.75

%

RO

I in

L

- 5

11

.00

%

RE

PA

YA

BLE

IN

BU

LLE

T I

NS

TA

LME

NT

IN

SE

PT

.20

15

RE

PA

YA

BLE

IN

PE

RIO

D O

F 8

QU

AR

TE

RLY

IN

ST

ALM

EN

TS

CO

MM

EN

CIN

G F

RO

M

SE

PT

.20

15

(R

s in

La

cs)

MO

NT

H

O

P.

BA

L

INT

IN

ST

ALL

. T

OT

AL

C

L B

AL

PV

FA

CT

OR

NP

V

M

ON

TH

O

P.

BA

L

INT

IN

T

PA

ID

INS

T.

PA

ID

Am

t .

Pa

id

CL

BA

L P

V

Fa

cto

r

NP

V

Ap

r-15

1

50

00

.00

5

7.2

9

0.0

0

57

.29

5

00

0.0

0

0.9

9

56

.51

Ap

r-15

50

00

.00

4

5.8

3

45

.83

0

.00

4

5.8

3

50

00

.00

0

.99

4

5.2

1

May-1

5

2

50

00

.00

5

7.2

9

0.0

0

57

.29

5

00

0.0

0

0.9

7

55

.75

May-1

5

50

00

.00

4

5.8

3

45

.83

0

.00

4

5.8

3

50

00

.00

0

.97

4

4.6

0

Ju

n-1

5

3

50

00

.00

5

7.2

9

0.0

0

57

.29

5

00

0.0

0

0.9

6

54

.99

Ju

n-1

5

50

00

.00

4

5.8

3

45

.83

0

.00

4

5.8

3

50

00

.00

0

.96

4

3.9

9

Ju

l-1

5

4

50

00

.00

5

7.2

9

0.0

0

57

.29

5

00

0.0

0

0.9

5

54

.25

Ju

l-1

5

50

00

.00

4

5.8

3

45

.83

0

.00

4

5.8

3

50

00

.00

0

.95

4

3.4

0

Aug

-15

5

50

00

.00

5

7.2

9

0.0

0

57

.29

5

00

0.0

0

0.9

3

53

.51

Aug

-15

50

00

.00

4

5.8

3

45

.83

0

.00

4

5.8

3

50

00

.00

0

.93

4

2.8

1

Sep

-15

6

50

00

.00

5

7.2

9

50

00

.00

5

05

7.2

9

0.0

0

0.9

2

46

59

.43

Sep

-15

50

00

.00

4

5.8

3

45

.83

5

00

.00

5

45

.83

4

50

0.0

0

0.9

2

50

2.8

9

Oct-

15

7

0.0

0

0.0

0

0.0

0

0.0

0

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Annexure-XIII

Specific Finacle Guidelines

Reversal of proxy account transactions: At present entries in proxy account relating to charges (Minimum Balance, Ledger folio, Inward/Outward Clearing return, ECS return, Dormant account charges) outstanding beyond 7 days are reversed periodically by Data Centre and lien marked in the account. The said reversal will be run by Data Centre. On the last day of closing all CBS branches are required to ensure that there is NIL outstanding of entries other than charges in proxy account. (Use menu OSPRO for listing outstanding entries other than charges in proxy account)

Application of various other charges: Please note that Data Centre will apply the charges such as Ledger Folio charges, minimum balance charges, and dormant charges, incidental charges, clearing return charges and drawing against uncleared effects. However, branches will have to pass / reverse necessary adjusting entries for other expenses as per extant guidelines Trading Position accounts: Outstanding in Trading position Accounts if any, must be zeroised in consultation with Data Centre as per guidelines issued vide circular no.BCC: BR: 99/14 dated 15.01.2007. In spite of various communications some branches are yet to correct the trading account entries. Please ensure correction on or before 23-03-2015. Bills discounted: CBS system will take care of amortization of income on Bills discounted. However, branches will be required to pass necessary transaction in respect of prepaid discount part manually as accounting of rediscounting of bills is not handled in Finacle. NPA Accounts: Under centralized system of processing of NPA accounts under scheme type LAA/ODA/CCA, the marking of NPA status and reversal of unrealized interest/charges in accounts are being done by Data Centre from the quarter ending Sept, 2013. Branches are required to use Menu NPATM for any collection in NPA loan account. This will facilitate automatic recovery of outstanding interest/charge amount reversed in account during NPA marking process.

For NPA marking for accounts under scheme type other than LAA/ODA/CCA, Branch is required to use menu option ‘MEAC’. Branches are advised to change the category/sub category of accounts as performing/non-performing and classify them into standard/sub-standard/doubtful/loss assets as per status envisaged by them by 27-03-2015. System will apply interest for all standard accounts only and will not apply interest for NPA accounts. For upgradation of any NPA account, Branch is required to use menu BOBMEAC /MEAC.

2

Conversion of Foreign currency PL balances: In respect of conversion of P/L Interest Paid on FCNR accounts in foreign currencies, the same will be handled by Data Centre and branches need not do such conversion. However in case of other P/L accounts like Interest paid on RFC etc, if any, please be guided as per guidelines provided below. Branches are advised to go through the same and act accordingly. Converting P & L balances in foreign currencies ( excluding interest on FCNR ) under various heads into INR. With the introduction of multi currency G/L and P/L, the branches may have balance outstanding in foreign currencies viz. USD, GBP, EUR, JPY, CAD and AUD in various P&L expenditure and income accounts related to foreign currency liabilities and assets.

For the half year ended Mar 2015, interest on the assets and liabilities will be applied by Data Centre.

By invoking Menu option ACSP (Account selection Print) , selecting the currency one by one and using value for the fields given as under, branches are requested to arrive at outstanding foreign currencies against different P&L heads.

Menu option – ACSP Fields Values to be given CCY USD/GBP/EUR/AUD/CAD/JPY as applicable Menu to be invoked currency wise one by one as above Scheme code: EXPEN (For all expenditure heads) INCOM (For all income heads) Press F4 to move to second page Give Scheme type: OAB

EXPENDITURE A/C HEAD FGN CCY AMOUNT in FGN CCY

INCOME A/C HEAD FGN CCY AMOUNT in FGN CCY

FOR INTEREST IN FOREIGN CURRENCY ON PCFC IF ANY

i) In case the net balance in a particular currency is in positive:

Report purchase of foreign currency. Dr. BITTA in INR Cr. Individuals P& L heads in that currency in INR and Dr. Individual P & L heads in foreign currency Cr. BITTA in foreign currency ii) In case the net balance in a particular currency is in negative Report sale of foreign currency.

3

Dr. Individuals P&L heads in that currency in INR Cr. BITTA in INR Dr. BITTA in foreign currency ’ Cr. Individual P & L heads in foreign currency

‘B’ Category Branches

B’ category branches are further advised to arrive at net amount of foreign currencies in other P &L income/ expenditure heads using Menu Option ‘ACSP’ as advised above excluding interest paid on FCNR and corresponding sale / purchase should be reported to Treasury branch currency wise. Then go to *Menu option ‘ACSP’ (Account selection Print), selecting currency and using value for fields given as under, branches may arrive at outstanding foreign currencies against different P &L heads– CCY :USD/GBP/EUR/AUD/CAD/JPY as applicable Menu to be invoked currency wise as above Scheme code: EXPEN (For all expenditure heads) INCOM (For all income heads) Press F4 to move to second page Scheme type : OAB

Net out all the balances of various P&L accounts except interest paid on FCNR to arrive at net position of each currency on account of outstanding in various P&L accounts.

Entries to be passed are as under-

ii) In case the net balance in a particular currency is in positive: Report purchase of foreign currency. Dr. BITTA in INR Cr. Individuals P& L heads in that currency in INR And Dr. Individual P & L heads in foreign currency Cr. BITTA in foreign currency

iii) In case the net balance in a particular currency is in negative: Report sale of foreign currency. Dr. Individuals P&L heads in that currency in INR Cr. BITTA in INR And Dr. BITTA in foreign currency Cr. Individual P & L heads in foreign currency

1. Net out all the balances of various P&L accounts except interest paid on FCNR to arrive

at net position of each currency on account of outstanding in various P&L accounts.

4

2. Report to Treasury and convert the same to INR at the rate given by Treasury. 3. Foreign currency outstanding should be nullified by debit or credit to BITTA in foreign

currency. The P&L heads should be credited or debited with equivalent INR amount as per illustration below-

P/L Int. paid account (Other than FCNR) Dr. USD 500 P/L Int. earned account (PCFC) Cr. USD 100 Net outstanding is Dr. USD 400 Report sale of USD 400 = INR 20,000- Exch. Rate USD 1 = INR 50- Following entries be passed by the branch- Cr. P&L Int. paid account USD 500- Dr. P & LInt. Earned account (PCFC) USD 100- Dr. BITTA USD 400- And Dr. P&L Int. paid account INR 25,000- Cr. P&L Int. earned account (PCFC) INR 5,000- Cr. BITTA INR 20,000-

Annexure XIV

Processes Automated:-

· Depreciation on furniture & fittings is calculated by the system and entries are

also passed by the data centre, hence branches are not required to calculate and

pass entry for depreciation manually.

· Transfer of Profit/Loss to HOCORP - Branches is not required to generate IBT

Schedule for transfer of Profit/Loss to HOCORP. It will be transferred through intersol account by data centre.

· Transfer of HO interest - Branches is not required to prepare Schedule I/Z for

transfer of HO Interest. It will be transferred by Data Centre

· Service tax is now automated i.e. service tax calculation, passing of entries and

transfer of balance is done by data centre; hence branches are not required to

prepare any schedule for transfer of service tax.

· Balances of HODD will be transferred by data centre to corporate office.

Branches are not required to prepare IBTA schedule for transfer of HODD

balances.

· Reversal of interest in case of an advance account downgraded to non performing category will be done by the system. Branch will be required to issue 14 / 14 D but need not pass the entry in the branch books for the interest

reversal.

· Creation of Sundry Liabilities (Interest capitalization) in respect of FITL is done

by Data Centre. Branches are not required to pass entry for creation of Sundry

liabilities (Interest capitalization)

Annexure XV UNHEDGED FORIEGN CURRENCY EXPOSURE Unhedged foreign currency exposures of the borrower entities are an area of concern not only for the individual entity but also for the entire financial system. Entities who do not hedge their foreign exchange exposure, subject themselves to risk which can result in significant losses due to exchange rate movements. These losses reduce the capacity of the borrower to service the loans / borrowers and thereby affect the health of the Banking system. In order to mitigate the probability of default in times of high currency volatility, Reserve Bank of India has introduced incremental capital and provisioning requirement for Bank exposure to unhedged entities. The details of the capital & provisioning requirement is given in RBI Circular No RBI/2013-14/448 DBOD.No.BP.BC.85/21.06.200/2013-14 dated January 15, 2014 and RBI/2013-14/620 DBOD.No.BP.BC.116/21.06.200/2013-14 dated June 3, 2014. It is pertinent to note here that the incremental capital and provisioning requirement is in respect of unhedged foreign currency exposure of the borrower. The provision required to be made by the Bank in respect of unhedged foreign currency exposure will be in respect of ALL borrowers of the Bank (irrespective of whether the borrower has a foreign currency borrowings with the Bank). Further Foreign currency exposure in currencies other than US$ may be converted into US$ using the current market rates. The steps required in making this incremental provision are: 1. Ascertain the amount of unhedged foreign currency exposure of the borrower entity (UFCE)

2. Estimate the extent of likely loss

3. Estimate the riskiness of the unhedged position and provide appropriately The implementation of the above guidelines is dependent on getting accurate data on unhedged foreign currency exposure and EBID of the borrower. It is therefore advised that information on UFCE may be obtained from entities on quarterly basis on self certification basis and preferably should be internally audited by the entity concerned. However at least on annual basis, UFCE information should be audited and certified by the Statutory Auditor of the entity for its authenticity. However for this quarter, information may be obtained from the borrower (borrowers having exposure over Rs 25 crores) entity on self certification basis. The computation of the incremental provisioning and capital requirement will be an ongoing process. We are giving below the details of the steps to be taken by the Branches in obtaining information on UFCE. The information will be required on a quarterly basis. The Branches are advised to send the information in an excel sheet, to their respective Regional Offices where the information will be consolidated and the Regions will in turn send the data to Zones (in excel sheet) for further consolidation. The Zonal data will be submitted to BCC by the Zone. The steps required to be taken.

1. The branch will write to all its borrowers (with exposure of over Rs 25 crores) seeking information on Unhedged foreign currency exposure and EBID of the borrower.

2. The information to be sought from the borrower are the following

i. Total foreign currency exposure (FCE) of the borrower. Foreign Currency Exposure (FCE) refers to the gross sum of all items on assets and liabilities side of the balance sheet of the borrower, that have impact on profit and loss account due to movement in foreign exchange rates. This may be computed by following the provisions of relevant accounting standard. Items maturing or having cash flows over the period of next five years only may be considered.

ii. Out of the above, what portion of the FCE is hedged and the unhedged portion of FCE (UFCE). In computing the UFCE, borrower may exclude items which are effective hedge of each other. For this purpose, two types of hedges which may be considered are - financial hedge and natural hedge. Financial hedge is ensured normally through a derivative contract with a financial institution. Hedging through derivatives may only be considered where the entity at inception of the derivative contract has documented the purpose and the strategy for hedging and assessed its effectiveness as a hedging instrument at periodic intervals. For the purpose of assessing the effectiveness of hedge, guidance may be taken from the pronouncements of the Institute of Chartered Accountants of India on the matter.

Natural hedge may be considered when cash flows arising out of the operations of the company offset the risk arising out of the FCE defined above. For the purpose of computing UFCE, an exposure may be considered naturally hedged if the offsetting exposure has the maturity/cash flow within the same accounting year. For instance, export revenues (booked as receivable) may offset the exchange risk arising out of repayment obligations of an external commercial borrowing if both the exposures have cash flows/maturity within the same accounting year.

iii. The EBID of the borrower for the year ended 31.03.2014. The EBID figure has to be from

the audited balance sheet of the borrower as of 31.03.2014. In case the borrower does not have the EBID figure for 31.03.2014 the figure as per latest available audited balance sheet may be taken. {EBID means :– Profit after Tax + Depreciation + Interest on Debt}

3. The information is to be given by the borrower in the enclosed format Annex- XV (a). Please

also ensure to get this declaration certified by the Auditors of the Borrower entity.

4. The format in which data will be compiled by the Branch is given in Annexure- XV (b). The

same format Annexure- XV(b) will be used by the Regions and Zone for consolidation at their

end.

Application of UFCE guidelines for Projects under implementation / New projects

The computation of incremental provisioning and capital requirements for projects under

implementation will be based on projected average EBID for the three years from the date of

commencement of commercial operations and incremental capital and provisioning should be

accordingly computed subject to a minimum floor of 20 bps of provisioning requirement. For new

entities also, the same frame work may be applied.

The data called for, is very critical as the same will determine the provision to be made on account of UFCE by the Bank. Therefore it is very essential that the Branch takes utmost care in getting the data / information from the borrower and compiling it and sending it to the Regions / Zone. Branch / Region / Zone need not pass any accounting entry for the UFCE Provision. The Provision will be made at Corporate level. The branches should make preparation for the data / information on EBID and unhedged exposure before 31.03.2015 for ensuring smooth closing activity and sending complete data to Region / Zone within the stipulated time. The above information should be submitted by Branches to the Regions latest by 06.04.2015. The consolidation at Region and Zone should be carried out and the compiled information should be sent to BCC by 08.04.2015. In case any further clarification is required, the branches may contact the Domestic Foreign Business Cell at Large Corporate Banking, BCC, Mumbai.

ANNEXURE- XV (a)

FORMAT FOR INFORMATION ON UNHEDGED FORIEGN CURRENCY EXPOSURE. (This is to be obtained from the borrower enjoying credit FB/NFB Limits of over Rs 25 crores on the borrower / company’s letterhead)

NAME OF THE BORROWER :

INFORMATION GIVEN BELOW PERTAINS TO : 31st December 2014.

(Figures - Rs in Lacs)

1 Total Foreign currency exposure of the Company i. Export Receivables ii. Sundry Creditors in Foreign Currency iii. Borrowings in Foreign Currency (PCFC / PSDL etc) iv. Long Term Borrowings in foreign currency (ECB / FCNR B

Loan , FCTL etc) v. Other foreign currency assets and liabilities.

Off Balance Sheet Items

i. Foreign Bank Guarantee ii. Foreign Letters of Credit issued for which liability not yet

created) iii. FBP / FBD etc

TOTAL 2 Out of 1, the foreign currency exposure which is hedged 3 Out of 1, the foreign currency exposure which is unhedged

4 EBID (Profit after Tax+ Depreciation + Interest on Long Term Debt) The EBID may be of 31.03.2014. However the exposure details should be as of at least 31.12.2014.

Signature :

Name of Authorised Signatory:

Designation (Director / CFO) Signature of Auditor of the

Borrowing entity with Seal

Date:

Place:

Note: · Total Foreign currency exposure is computed as per 2(i) of page 2 · Hedged and unhedged foreign currency exposure is computed as per 2(ii) of page 2 · EBID is computed as per 2(iii) of page 2 · Declaration to be certified by the Statutory Auditor of the Borrowing entity.

ANNEXURE – XV (b)

NAME OF BRANCH : REGION : ZONE : STATEMENT OF CALCULATION OF UFCE

I. Summary of Advances of the Branch (Rs in lacs)

No Particulars Fund based Outstanding as of 31.03.2015

Standard NPA Total No. Of

borrowers Amount No. Of

borrowers Amount Amount

(D+F) A B C D E F G 1 Borrowers with exposure

above Rs 25 crores

2 Borrowers with exposure at Rs 25 crores and less

TOTAL Note: Total Fund based outstanding of advances portfolio of the Branch (as per Pre MoC ASCROM) should

tally with the total of column G above.

II. Details of Calculation of UFCE (Exposure above Rs 25 crores) : (Table A)

No Name of

Borrower

Branc

h

UFCE

(Rs in

Lacs)

Likely Loss

(12.49% of

Col 3) (Rs in Lacs)

EBID

(Rs in

lacs)

Likely Loss

/EBID (%)

(4÷5×100)

Incremental

Provisioning

Required (*)

(% or bps terms)

FB O/S

As of

31.03.15

(Rs in Lacs)

Provisioning

Requirement

(Rs in Lacs)

(Col 7 × Col 8)

1 2 3 4 5 6 7 8 9

TOTAL

(* Point No 1 of the explanatory notes) Total of column no.8 to tally with I (1)(D) above.

III. Details of calculation of UFCE for Borrowers with exposure of Rs 25 crores and less (Table B)

Sl No

Particulars Number of Borrowers

Fund based Outstanding as of 31.03.15 (Rs in lacs)

A B C D 1 Borrowers with exposure Rs 25 crores and less and

having Foreign currency exposure

2 Borrower with exposure Rs 25 crores and less and not having foreign currency exposure

TOTAL Note: (a) The total of column D should tally with the total of ASCROM/ I (2)(D)above

(b) For borrowers with exposure of Rs 25 crores and less and having foreign currency exposure, the details as per Table C to be filled up.

Borrowers with exposure of Rs 25 crores and less and having Foreign currency exposure

(Table C) No Name of Borrower Branch Fund based outstanding in

the accounts as of 31.03.2015 (Rs in Lacs)

Of which unhedged Exposure (Rs in lacs)

Provisioning Requirement (Rs in Lacs)

1 2 3 4 5

TOTAL (Provision @ 10 bps on the fund based outstanding)

____________________________ ___________________ Signature of Branch Manager Signature of Auditor The above statement will be certified by the Statutory Auditor / Concurrent Auditor / Branch Manager (where the branch is not under Audit- To be certified by Branch Head).

Explanatory Notes

Figures for the different tables will be as per the Pre MoC Ascrom of the Branch

Table B :-

1. The incremental provisioning requirement will be as under :

No If the Value of Colum 6 is Incremental Provisioning requirement on the Fund based credit exposure of borrower as on 31.03.2015

1 Upto 15% 0% 2 More than 15% and upto 30% 20 bps or 0.20% 3 More than 30% and upto 50% 40 bps or 0.40% 4 More than 50% and upto 75% 60 bps or 0.60% 5 More than 75% 80 bps or 0.80%

2. Provisioning requirement (Column 9) should be computed on the fund based outstanding.

INSTRUCTION FOR ZONE / REGION

The above information (which each branch will prepare) will be consolidated at Regional Office. The statement

of any particular Region will again be consolidated at the respective Zones. The Consolidated Zonal figures /

information will be submitted to Domestic Foreign Business Dept /Large Corporate Banking, Baroda

Corporate Centre, Mumbai by 08.04.2015.

CERTIFICATE-1

BANK OF BARODA ANNUAL CLOSING FOR THE YEAR ENDED 31ST MARCH 2015

Branch : ______________ Region:__________________Zone:_________________

Format of Audit Certificate

Certified that Bank of Baroda, _________________________ branch has remitted/not remitted * the share of the Deposit Insurance and Credit Guarantee Corporation out of recoveries effected in Claims Paid accounts regularly on the due date, as prescribed by the Corporation vide its circulars Nos.10/93-94 and 85 dated 14th February 1994 and 7th July 1995 respectively, and that no/some * amount is withheld by the branch on this account. This is the true and correct position as on 31st March 2014, as per the books of accounts of the branch. The branch has remitted a sum of Rs. ____________ as detailed below.

Scheme-wise breakup is as under : (Amount in Rupees)

SLGS. 1971 Rs.

Sl (SSI) GS.1981 Rs.

Govt’s Scheme for

Small Scale Industries (since cancelled)

Rs.

Total Rs.

Remarks, If any

SEAL AND SIGNATURE OF

CHARTERED ACCOUNTANT FIRM

Date : ________________ * Delete whichever is not applicable In case of negative certificate please furnish the details as under: Recovery under DICGC (SSI Scheme)

Date of Recovery

Amt. Of recovery not shared with DICGC as on

31.03.2015

Sate of sharing recovery with DICGC

after 31.03.2015

Amount Remitted

Recovery under Small Loans Guarantee Scheme

Date of Recovery

Amt. Of recovery not shared with DICGC as on

31.03.2015

Sate of sharing recovery with DICGC

after 31.03.2015

Amount Remitted

* Branch should maintain account wise details for compliance wherever warranted.

CERTIFICATE - 3

BANK OF BARODA


MARCH 2015

BRANCH________________REGION____________________ZONE___________________

STATEMENT OF CASH AND BANK BALANCES HELD AS ON THE 12 ODD DATES DURING THE YEAR 2014-2015

(Rs.in 000's)

12 Odd dates

and day Cash on

hand

Balance with

R.B.I.

Balance in C.A/c with

SBI


notified

banks


nationalised

banks

Balance with

other

banks

(BH)* (BI)* (BJ)* (BK)* (BL)* (BM)* 1 14.04.2014 MON

2 20.05.2014 TUE

3 18.06.2014 WED

4 24.07.2014 THUR

5 25.08.2014 MON

6 09.09.2014 TUE

7 15.10.2014 WED

8 20.11.2014 THUR

9 15.12.2014 MON

10 13.01.2015 TUE

11 18.02.2015 WED

12 12.03.2015 THUR

* Codes as per Form No.153

Place: Chartered Accountant Branch / Regional / Zonal Head

Date:

CERTIFICATE-4

BANK OF BARODA

ANNUAL CLOSING FOR THE YEAR ENDED 31

ST MARCH 2015

Branch :__________________ Region:_____________ Zone___________

EXPOSURE * TO SENSITIVE SECTORS

OUTSTANDING AMOUNT AS ON 31ST

MARCH, 2015

(Rs.in thousands)

Items Current Year Previous Year

a) Direct Exposure (i) Residential Mortgages - (Lendings fully secured by mortgages on

residential property that is or will be occupied by

the borrower or that is rented – Total Amount

Of which : Individual Housing Loans eligible for

inclusion in Priority Sector (ii) Commercial Real Estate – Lendings secured by mortgages on commercial real estates (office buildings, retail space, multi

purpose commercial premises, multi family

residential buildings, multi tenanted commercial

premises, industrial or warehouse space, hotels,

land acquisition, development and construction,

etc.) Exposure includes non-fund based (NFB)

limits (iii) Investments in Mortgage Backed Securities

(MBS) and other securitised exposures –

a. Residential b. Commercial Real Estate

b) Indirect Exposure Fund based and non fund based exposures on i) National Housing Bank (NHB)

ii) Housing Finance Companies (HFCs)

.. 2 .....

: 2 :

Exposure * to Capital Market

Items Current Year Previous Year

(i) Direct Investments in equity shares, convertible

bonds, convertible debentures and units of equity

oriented mutual funds the corpus of which is not

exclusively invested in corporate debt

(ii) Advances against shares / bonds/ debentures or

other securities or on clean basis to individuals for investment in shares (including IPOs/ESOPs),

convertible bonds, convertible debentures and units of

equity oriented mutual funds;

(iii) Advances for any other purposes where shares or

convertible bonds or convertible debentures or units of

equity oriented mutual funds are taken as primary

security;

(iv) Advances for any other purposes to the extent

secured by the collateral security of shares or convertible

bonds or convertible debentures or units of equity

oriented mutual funds i.e. where the primary security other than shares/convertible bonds/convertible

debentures/units of equity oriented mutual funds does

not fully cover the advances

(v) Secured and unsecured advances to stockbrokers

and guarantees issued on behalf of stockbrokers and

market makers

(vi) Loans sanctioned to corporates against security of

shares/bonds/debentures or other securities or on clean

basis for meeting promoter’s contribution to the equity

of new companies in anticipation of raising resources

(vii) Bridge loans to companies against expected equity flows/issues

(viii) Underwriting commitments taken up by banks in

respect of primary issue of shares or convertible

bonds/debentures or units of EOMF

(ix) Financing to stockbrokers for margin trading

(x) All exposures to venture capital funds both

registered and unregistered will be deemed to be on par

with equity and hence will be reckoned for compliance

with the capital market exposure ceilings (both direct

and indirect)

Total Exposure to Capital Market

* Exposure means outstanding or limit sanctioned whichever is higher


Date:

CERTIFICATE-7

BANK OF BARODA


MARCH 2015

Branch :__________________ Region:_____________ Zone___________

Movement Chart of NPAs (Gross) During the year 2014-15

Particulars Amt in Rs 000

Gross NPAS as on 1st April, 2014 (Opening Balance)

Additions

New NPAs during the year

Increase in Existing NPAs

Intt/ Charges etc debited and recovered in Existing NPA

Sub Total (A)

Less

(i) Upgradations

(ii) Recoveries (excluding recoveries made from upgraded

accounts)

(iii) Write offs

Sub-total (B)

Gross NPAs as on 31st March 2015 (closing Balance) (A-B)


Date:

Bra

nch

: R

eg

ion

: Z

on

e:

CE

RT

IFIC

AT

E -

5

GH

OS

H C

OM

MIT

TE

E R

EC

OM

ME

ND

AT

ION

S :

Im

ple

men

tati

on

Sta

tus a

s a

t 31

st

Marc

h 2

015

Sr.

No

.N

atu

re o

f R

ec

om

men

dati

on

Ye

sN

o N

.A.

TO

TA

LY

es

No

N.A

.T

OT

AL

3.3

Join

t custo

dy a

nd d

ual r

esponsib

ility

of

cash a

nd o

ther

valu

able

s.

3.4

Tra

nsactio

n in

the C

urr

ency C

hest to

be r

eport

ed to R

.B.I. on the sam

e

day.

3.5

Adhering to the p

rescribed n

orm

s a

nd safe

guard

s is

sued b

y R

.B.I. o

n

issue a

nd p

aym

ent of

hig

h v

alu

e d

raft

s, depositi

ng la

rge a

moun

ts in

new

accoun

ts w

ithout verify

ing a

nte

cedents

, openin

g o

f benam

i accoun

ts e

tc. to

pre

vent m

isuse o

f bankin

g c

hann

el.

4.3

Banks s

hould

cle

arly p

ut dow

n the a

uth

ority

to p

ut th

rough in

vestm

ent deals

and r

eport

ing s

yste

m to b

e a

dopte

d in

accord

ance w

ith g

uid

elin

es is

sued b

y

Govt./R

BI fr

om

tim

e to tim

e.

xxx

xxx

xxx

4.5

Periodic

al r

evie

w o

f bro

ker's p

erf

orm

ance a

nd r

ela

tionsh

ips. A

ll tr

ansactio

ns

to b

e r

ecord

ed w

ith f

ull

deta

ils. P

eriodic

al r

evie

w o

f in

vestm

ent tr

ansactio

ns

in a

critic

al m

ann

er

and to p

ut up la

rge tra

nsactio

ns to the B

oard

for

info

rmatio

n.

4.6

Purc

hases a

nd s

ale

s (

Tre

asury

) to

be p

eriodic

ally

report

ed to top

managem

ent w

ith r

easons f

or

the s

am

e.

4.7

There

should

be a

panel o

f bro

kers

. Q

uota

tions f

or

all

deals

to b

e r

ecord

ed

in the a

ppro

priate

regis

ters

.

4.8

To e

nsu

re a

bili

ty o

f coun

ter

part

y to f

ulfill

the c

ontr

act. D

eals

to b

e p

ut

thro

ugh a

t m

ark

et ra

tes a

nd d

irectly

with

the c

oun

ter

part

y. B

Rs to b

e

issued w

hen u

navoid

able

str

ictly

follo

win

g R

BI guid

elin

es a

nd in

the f

orm

at

pre

scribed b

y IB

A o

n s

ecurity

paper

and s

erially

nu

mbere

d a

nd d

uly

sig

ned

by a

uth

oriesed o

ffic

ials

. N

om

encla

ture

of

securitie

s a

nd their d

istin

ctiv

e

nu

mbers

to b

e in

dic

ate

d a

nd p

roper

record

main

tain

ed. P

rudentia

l lim

its f

or

accepta

nce o

f B

Rs o

f oth

ers

to b

e p

rescribed. P

aym

ents

should

be

rele

ased o

nly

on g

ettin

g a

written c

onfirm

atio

n o

f th

e d

eal f

rom

the c

oun

ter

part

y.

4.9

Securitie

s to b

e r

ecord

ed a

nd k

ept in

the jo

int custo

dy. P

eriodic

al

verificatio

n o

f securitie

s s

ay o

nce in

a q

uart

er

or

half y

ear

by p

ers

ons o

ther

than d

ealin

g p

ers

ons.

4.1

0P

eriodic

reconcili

atio

n o

f securitie

s, B

Rs, S

GL b

ala

nce a

t P

DO

.

4.1

1V

erificatio

n o

f deals

by in

tern

al i

nspecto

rs a

nd c

oncu

rrent audito

rs a

nd

surp

rise s

am

ple

checks b

y V

igila

nce C

ell.

5.9

There

should

be a

form

al w

ritten le

ndin

g p

olic

y, am

plif

ied b

y a

dequate

written p

rocedure

s.

5.1

4T

o s

et up a

n in

tern

al l

oan r

evie

w d

epart

ment. T

o e

valu

ate

the q

ualit

y o

f

cre

dit

port

folio

and r

eport

on the h

ealth

of

the lo

an p

ort

folio

directly

to the

Board

at periodic

inte

rvals

.

BA

NK

OF

BA

RO

DA

Imp

lem

en

tati

on

sta

tus

at

Bra

nc

hIm

ple

me

nta

tio

n s

tatu

s a

t R

O/Z

O/H

O

Page 1

GH

OS

H C

OM

MIT

TE

E R

EC

OM

ME

ND

AT

ION

S :

Im

ple

men

tati

on

Sta

tus a

s a

t 31

st

Marc

h 2

015

Sr.

No

.N

atu

re o

f R

ec

om

men

dati

on

Ye

sN

o N

.A.

TO

TA

LY

es

No

N.A

.T

OT

AL

Imp

lem

en

tati

on

sta

tus

at

Bra

nc

hIm

ple

me

nta

tio

n s

tatu

s a

t R

O/Z

O/H

O

8.2

& 8

.4

Periodic

ity o

f th

e in

tern

al a

udit

should

be o

nce e

very

12

month

s (

and o

f

surp

rise n

atu

re)

and c

overa

ge o

f in

spectio

n r

eport

s s

hould

be

com

pre

hensiv

e in

clu

din

g a

thoro

ugh e

xam

inatio

n o

f th

e in

tern

al c

ontr

ol

syste

m o

bta

inin

g a

t th

e b

ranch

, besid

es o

ther

featu

res in

dic

ate

d in

the

Report

.

8.3

Inspectio

n D

epart

ment to

be m

ann

ed b

y a

senio

r pers

on o

f suff

icie

nt

exp

erience a

nd e

xposure

and p

roven in

tegrity

.

8.5

Surp

rise/s

pot in

spectio

n o

f la

rge b

ranch

es.

8.6

Revenu

e a

udit

of

larg

e b

ranch

es a

nd a

ccoun

tabili

ty.

8.7

Concu

rrent audit

at all

larg

e a

nd e

xceptio

nally

larg

e b

ranch

es. T

he

irre

gula

ritie

s o

f C

hart

ere

d A

ccoun

t firm

s s

hould

be b

rou

ght to

the n

otic

e o

f

RB

I and Instit

ute

of

Chart

ere

d A

ccoun

tants

of

India

.

8.8

Inspectio

n o

f H

ead O

ffic

e d

epart

ments

and c

ontr

olli

ng o

ffic

es r

egula

rly a

nd

by S

enio

r off

icers

.

8.1

0(a

) S

yste

m o

f exc

lusiv

e s

cru

tiny o

f cre

dit

port

folio

with

focus on la

rge

advances a

nd g

roup e

xposure

s.

(b)

Specia

l scru

tiny o

f hig

h v

alu

e a

ccoun

ts s

hifte

d o

n the b

ank alo

ng w

ith

exe

cutiv

es a

nd a

ccoun

ts tra

nsfe

rred f

rom

oth

er

bra

nch

es a

lon

g w

ith

off

icia

ls. T

he o

bserv

atio

ns o

f R

.B.I. in

spectio

ns s

hould

be p

rom

ptly

and

eff

ectiv

ely

follo

wed u

p b

y b

anks.

To

tal o

f (a

) +

(b

)

8.1

1In

specto

rs to e

ducate

sta

ff o

n h

aza

rds o

f devia

tion f

rom

the p

rescribed

syste

m/g

uid

elin

es.

8.1

2R

atio

nalis

atio

n o

f re

turn

s a

nd s

trength

enin

g p

resent in

form

atio

n s

yste

m o

f

report

ing to top m

anagem

ent.

8.1

3T

o o

bta

in c

onfirm

atio

n f

rom

bra

nch

es o

nce in

a q

uart

er

for

the n

il arr

ears

positi

on o

f contr

ol r

etu

rns.

8.1

4M

onth

ly c

ert

ific

ate

on in

spectio

n o

f associa

ted u

nits

and o

n s

tocks p

ledged

/hypoth

ecate

d to b

ank. S

tock in

spectio

ns a

re carr

ied o

ut B

i-m

onth

ly.

8.1

5C

hecks to b

e c

arr

ied o

ut by c

ontr

olle

r at th

e tim

e o

f vis

it.

8.1

6T

o c

arr

y o

ut surp

rise in

spectio

n o

n n

otic

ing a

bnorm

al i

rregula

ritie

s in

contr

ol

retu

rns.

8.1

7A

ppro

priate

guid

elin

es to b

e is

sued f

or

contr

ol o

ver

subsid

iaries.

8.1

8T

o e

volv

e a

syste

m in

whic

h a

n e

mplo

yee c

om

ing a

cro

ss a

n ir

regula

r

pra

ctic

e in

any o

f th

e o

pera

tion a

reas s

hould

be m

ade r

esponsib

le to r

eport

the s

am

e to h

igher

auth

oritie

s f

or

rem

edia

l actio

n.

9.9

Adoptio

n of

pre

ventiv

e m

easure

s o

f vig

ilance in

letter

and spirit

as

enu

mera

ted

Page 2

GH

OS

H C

OM

MIT

TE

E R

EC

OM

ME

ND

AT

ION

S :

Im

ple

men

tati

on

Sta

tus a

s a

t 31

st

Marc

h 2

015

Sr.

No

.N

atu

re o

f R

ec

om

men

dati

on

Ye

sN

o N

.A.

TO

TA

LY

es

No

N.A

.T

OT

AL

Imp

lem

en

tati

on

sta

tus

at

Bra

nc

hIm

ple

me

nta

tio

n s

tatu

s a

t R

O/Z

O/H

O

10

.1N

eed f

or

cla

ss c

oord

inatio

n b

etw

een in

tern

al i

nspectio

n/a

udit-

set up,

pers

onn

el d

epart

ment, d

iscip

line c

ell

and v

igila

nce m

achin

ery

.

10

.2C

onduct of

sim

ulta

neous d

epart

menta

l enquiry o

n b

ankin

g la

pses a

long

with

CB

I in

vestig

atio

n b

y s

egre

gatin

g c

harg

es.

10

.3V

igila

nce c

ell

to h

ave e

xclu

siv

e o

ffic

ials

for

field

jobs.

11

.3

Verificatio

n o

f ante

cedents

of

pers

ons b

efo

re a

ppoin

tmen

t in

banks a

nd a

t

their p

revio

us a

ppoin

tment w

here

applic

able

. T

he C

onfidentia

l Report

s

record

ed o

n s

taff

should

giv

e c

lear

cut assessm

ents

of

their w

ork

and

conduct.

11

.4R

ota

tion o

f sta

ff/d

utie

s a

nd tra

nsfe

r covering a

ll cate

gories of

sta

ff,

inclu

din

g d

ealin

g r

oom

s/s

ecuritie

s d

epart

ments

sta

ff e

tc.

11

.9D

esk c

ard

for

sta

ff to b

e p

repare

d. B

anks to d

esig

nate

one o

f th

e s

enio

r

off

icer

as a

Com

plia

nce O

ffic

er.

11

.10

Fin

ancia

l and a

dm

inis

trativ

e p

ow

ers

of

off

icia

ls s

hou

ld b

e la

id d

ow

n.

Gro

up A

Part

II

1.1

Pre

cautions in h

andlin

g c

ash a

nd v

alu

able

s –

restr

iction o

f entr

y o

f cash

cabin

, dual c

usto

dy o

f cash/v

alu

able

s, surp

rise v

erificatio

n a

t re

gula

r

inte

rvals

etc

.

1.2

Pre

cautio

ns a

gain

st th

eft

of

cash-s

taff

should

not in

dulg

e in

convers

atio

ns/a

nsw

ering q

ueries, but direct such

pers

on to In

quiry C

oun

ter

only

.

1.3

Pre

cautio

ns a

gain

st s

hort

age in

cash r

eport

ed b

y c

ashie

r . Intr

oductio

n o

f

surp

rise c

heckin

g a

t fr

equent in

terv

als

.

1.4

Pre

cautio

ns a

gain

st m

isappro

priatio

n o

f cash b

y m

em

ber

of

sta

ff in

the

guis

e o

f custo

mer

serv

ice. O

nly

auth

orised pers

onn

el s

hould

accept

cash/is

sue c

oun

terf

oils

in c

ash d

epart

ments

. C

ashie

r should

not be a

llow

ed

to m

ake e

ntr

ies in

Pass B

ook.

1.5

Pro

per

syste

ms s

hould

be e

volv

ed in

respect of

Cash b

ala

nces, in

su

rance

and p

rom

pt re

port

ing o

f in

ter

bra

nch

and in

ter

bank r

em

ittances o

f cash.

1.6

Banks s

hould

evolv

ed p

roper

syste

ms o

f adequate

security

and c

usto

dy o

f

cash in

dacoit/

terr

orist attack p

rone a

reas.

1.7

Pre

cautio

ns a

gain

st m

isusin

g b

ankin

g c

hann

els

for

tax

evasio

n. P

os/T

Cs in

excess o

f R

s.5

000

0/-

should

be b

y w

ay o

f debit o

f C

onstitu

ents

’ accoun

t

and n

ot by c

ash. D

oubtf

ul c

ases s

hould

be r

eport

ed to h

igher

auth

oritie

s.

1.8

Periodic

al r

eport

ing o

f deposits

/with

dra

wals

fro

m c

urr

en

cy chest to

Issue

Depart

ment of

R.B

.I.

1.1

exe

rcis

e o

f cautio

n a

t th

e tim

e o

f openin

g o

f new

deposit

accoun

ts o

f all

types.

Page 3

GH

OS

H C

OM

MIT

TE

E R

EC

OM

ME

ND

AT

ION

S :

Im

ple

men

tati

on

Sta

tus a

s a

t 31

st

Marc

h 2

015

Sr.

No

.N

atu

re o

f R

ec

om

men

dati

on

Ye

sN

o N

.A.

TO

TA

LY

es

No

N.A

.T

OT

AL

Imp

lem

en

tati

on

sta

tus

at

Bra

nc

hIm

ple

me

nta

tio

n s

tatu

s a

t R

O/Z

O/H

O

1.1

1C

usto

mers

to b

e e

ducate

d a

bout im

plic

atio

ns o

f in

troducin

g an a

ccoun

t

with

out know

ing the p

art

y.

1.1

3C

lose w

atc

h o

n the o

pera

tions in

the n

ew

accoun

ts s

hou

ld b

e kept.

1.1

4Is

sue o

f fr

esh c

heque b

ooks s

hould

be o

nly

again

st re

quis

ition slip

fro

m

pre

vio

us c

heque b

ooks a

nd o

ther

pre

cautio

ns to b

e taken in

respect of

cheque b

ooks.

1.1

5P

recautio

ns in

paym

ent of

cheques-v

erificatio

n o

f sig

natu

re, custo

dy o

f

specim

en s

ignatu

res, custo

dy a

nd c

ontr

ol o

f bla

nk-

cheque b

ooks e

tc.

1.1

6B

ala

ncin

g o

f le

dgers

periodic

ally

by s

taff

oth

er

than le

dger

keepers

,

scru

tiny o

f un

auth

orize

d e

ntr

ies, corr

ectio

ns a

nd the o

ther

pre

cautio

ns in

respect of

Ledgers

.

1.1

7In

-opera

tive a

ccoun

ts to b

e k

ept in

separa

te le

dger,

specim

en sig

natu

re to

be in

custo

dy o

f M

anager

and o

ther

pre

cautio

ns.

1.1

8S

afe

custo

dy o

f/ a

ccess to v

ouch

ers

thro

ugh w

ritten o

rders

of

Manager

–

record

s to b

e m

ain

tain

ed o

f th

ose w

ho h

ave accessed s

uch

record

s.

1.1

9S

afe

custo

dy o

f specim

en s

ignatu

re c

ard

s a

nd v

erificatio

n o

f in

str

uctio

ns in

respect of

opera

tions o

f th

e a

ccoun

t.

1.2

1B

lank d

raft

and m

ail

transfe

r fo

rms to b

e tre

ate

d a

s s

ecu

rity

ite

ms a

nd u

su

al

pre

cautio

ns s

hould

be taken in

respect of

th

eir is

sue a

nd s

afe

custo

dy.

1.2

2S

teps to c

heck/p

revent fo

rgery

in c

heques/d

raft

s -

use o

f specia

l paper.

1.2

3P

recautions in w

riting o

f dra

fts/m

ail

transfe

rs –

use o

f pin

poin

t ty

pew

rite

rs

or

revers

e c

arb

on.

1.2

6W

ay in

whic

h tele

gra

phic

/tele

x m

essages f

or

tele

gra

phic

rem

ittances s

hould

be s

ent –

use o

f codes a

nd a

ccessib

ility

to

top m

ost off

icers

of

bra

nch

etc

.

1.2

7

Verificatio

n o

f sig

natu

res/h

andw

ritin

g s

hould

be p

art

of

train

ing p

rogra

mm

e

and n

ecessary

stu

dy m

ate

rial s

hould

be o

bta

ined f

rom

Natio

nal I

nstit

ute

of

Crim

inolo

gy.

1.2

8

Pre

cautio

ns a

gain

st fr

auds p

erp

etr

ate

d b

y e

mplo

yee -

eff

ectiv

e

superv

isio

n, tim

ely

receip

t of

contr

ol r

etu

rns a

nd s

cru

tiny th

ere

of,

rota

tion/tra

nsfe

r of

sta

ff e

tc. S

tric

t w

atc

h o

n c

learing o

pera

tions, house

keepin

g, re

concili

atio

n o

f in

ter

bank/b

ranch

accoun

ts.

1.2

9P

recautio

ns a

gain

st fr

auds p

erp

etr

ate

d b

y s

taff

in c

learin

g -

checkin

g o

f

Bra

nch

Cle

aring G

enera

l A/c

, despatc

h o

f sta

tem

ent, v

erificatio

n o

f

instr

um

ents

with

rela

tive s

chedule

s e

tc.

Page 4

GH

OS

H C

OM

MIT

TE

E R

EC

OM

ME

ND

AT

ION

S :

Im

ple

men

tati

on

Sta

tus a

s a

t 31

st

Marc

h 2

015

Sr.

No

.N

atu

re o

f R

ec

om

men

dati

on

Ye

sN

o N

.A.

TO

TA

LY

es

No

N.A

.T

OT

AL

Imp

lem

en

tati

on

sta

tus

at

Bra

nc

hIm

ple

me

nta

tio

n s

tatu

s a

t R

O/Z

O/H

O

1.3

0S

afe

tra

nsit

of

cheques a

nd in

str

um

ents

betw

een the b

ran

ch

es/ cle

aring

house.

1.3

1

Pre

cautio

ns to b

e taken to p

revent fr

aud thro

ugh e

ntr

ies in

suspense

accoun

t –

periodic

al bala

ncin

g a

nd c

heckin

g, sig

nin

g o

f d

ebit v

ouch

er

by

Manager/

Off

icer

auth

orize

d b

y h

im, sendin

g p

eriodic

al s

tate

ment, s

pecifyin

g

reasons f

or

non-a

dju

stm

ent fo

r la

rge a

nd m

ore

than a

month

etc

.

1.3

2M

echaniz

ation o

f opera

tions –

rela

ting to inte

r bra

nch

reconcili

ation. A

ll

bra

nch

es to c

lear

outs

tandin

g e

ntr

ies a

bove R

s.2

/- la

cs a

nd n

ot allo

w them

to r

em

ain

outs

tandin

g f

or

more

than a

month

etc

.

2.2

Unh

ealth

y p

ractic

e o

f gra

ntin

g a

dvances b

eyond d

iscre

tionary

pow

er

or

by

ora

l or

tele

phonic

instr

uctio

ns. Issue o

f in

str

uctio

ns b

y b

ank m

anagem

ent.

2.3

Post-

dis

burs

em

ent safe

guard

s to b

e f

ollo

wed –

critical assessm

ent of

all

advances p

eriodic

ally

, re

vie

w o

f stic

ky a

dvances a

nd lo

ok in

to s

taff

sid

e o

f

case w

hen there

is s

hift in

health

code s

tatu

s o

f a

ccoun

t.

2.7

Observ

ance o

f la

id d

ow

n r

ule

s/g

uid

elin

es/s

afe

guard

s b

y b

ank off

icia

ls –

cre

dit

appra

isal,

pre

sanctio

n v

isit

to b

orr

ow

ers

pre

mis

es/g

o d

ow

n, pro

per

monito

ring o

f end u

se o

f fu

nds to a

llow

ing p

aym

ents

to p

art

ies c

onn

ecte

d

with

borr

ow

er/

s li

ne o

f b

usin

ess a

nd n

ot allo

win

g tra

nsfe

r o

f la

rge a

moun

ts

to s

iste

r concern

s e

tc.

2.8

Check lis

t of

guid

elin

e to a

void

mis

use o

f hypoth

ecation/p

ledge fa

cili

ties –

verification o

f b

orr

ow

er’

s title

of

goods p

ledged, s

afe

ty o

f godow

ns,

obte

ntio

n o

f sto

ck s

tate

ment etc

.

2.8

(d)

Contr

olli

ng o

ffic

es s

hould

obta

in a

month

ly c

ert

ific

ate

fro

m b

ranch

es

indic

ate

d that periodic

al S

tock s

tate

ments

are

receiv

ed.

2.8

(e)

Contr

olli

ng o

ffic

es/V

igila

nce D

epart

ment should

have a

squad f

or

surp

rises

inspectio

n o

f goods p

ledged/h

ypoth

ecate

d.

2.1

3

Safe

guard

s a

gain

st fr

auds thro

ugh k

ite f

lyin

g o

pera

tions in c

heques –

limits

again

st cle

aring c

heques o

nly

for

prim

e custo

mers

, lim

ited d

raw

ings,

spare

use o

f dis

cre

tionary

pow

ers

etc

.

2.1

5

Pre

cautions a

gain

st fr

auds in b

ills p

ort

folio

s –

to e

nsu

re b

ills re

pre

sent

genu

ine tra

de tra

nsactio

ns, in

sis

tence o

n s

ubm

issio

n o

f a

ll re

late

d

docum

ents

, ascert

ain

ing c

redit

wort

hin

ess o

f borr

ow

ers

and d

raw

ees, lo

rry

receip

ts o

f appro

ved tra

nsport

ers

etc

.

3.4

Pre

cautio

ns f

or

avert

ing f

rauds in

the a

reas o

f le

tter

of

cre

dit,

is

sue o

f

guara

nte

es a

nd c

o-a

ccepta

nce f

acili

ties.

3.7

Banks G

uara

nte

es/L

Cs to b

e is

sued in

security

serially

nu

mbere

d, u

nder

two s

ignatu

res a

bove c

ert

ain

cut off

poin

t in

triplic

ate

, bin

din

g o

n

beneficia

ry to s

eek c

onfirm

atio

n o

f C

ontr

olli

ng O

ffic

er

(in

corp

ora

tion o

f

suita

ble

conditi

on in

the d

ocum

ents

) etc

.

Page 5

GH

OS

H C

OM

MIT

TE

E R

EC

OM

ME

ND

AT

ION

S :

Im

ple

men

tati

on

Sta

tus a

s a

t 31

st

Marc

h 2

015

Sr.

No

.N

atu

re o

f R

ec

om

men

dati

on

Ye

sN

o N

.A.

TO

TA

LY

es

No

N.A

.T

OT

AL

Imp

lem

en

tati

on

sta

tus

at

Bra

nc

hIm

ple

me

nta

tio

n s

tatu

s a

t R

O/Z

O/H

O

3.8

One o

f tw

o a

uth

orised s

ignatu

res o

n L

Cs m

ay b

e f

rom

contr

olli

ng o

ffic

e.

3.9

Bill

s d

iscoun

ting f

acili

ty u

nder

L/C

, co-a

ccepta

nce s

hould

be ext

ended o

nly

to c

usto

mers

havin

g r

egula

r sanctio

ned li

mits

.

4.2

All

pre

mis

es tra

nsactio

ns w

ith a

ppro

val o

f B

oard

. B

ank m

ay take the

serv

ices o

f E

ngin

eers

on d

eputa

tion f

rom

CP

WD

or

Sta

te P

WD

in their

pre

mis

es d

ept fo

r assis

tance in

exa

min

ing p

roposals

.

4.3

Bank s

hould

main

tain

separa

te r

ecord

of

larg

e p

rem

ises d

eals

and s

hould

be u

ndert

aken o

nly

with

the a

ppro

val o

f th

e B

oard

/Managem

ent.

4.4

Pre

caution r

ela

ting to d

eals

in ite

ms lik

e f

urn

iture

an

d f

ixtu

res, s

tationery

–

pro

per

syste

m o

f re

ceiv

ing q

uota

tions, dele

gatio

n o

f a

uth

ority

, pro

per

invento

ry m

anagem

ent and p

eriodic

al c

heckin

g e

tc.

5.2

Devis

ing s

tandard

s f

or

suita

ble

inte

rnal c

ontr

ol i

n c

om

pute

rised

environm

ent.

5.3

Rele

vant para

gra

phs c

overing c

om

pute

rised a

spects

to b

e a

dded w

hile

issuin

g g

enera

l adm

inis

trativ

e in

str

uctio

ns.

5.4

Tra

inin

g p

rogra

mm

es s

hould

inclu

de c

om

pute

r aspects

of

each

topic

in

each s

eason.

5.5

Mic

ro f

ilmin

g o

f re

cord

s, vouch

ers

, books.

5.6

Evolv

ing s

tandard

s f

or

fully

com

pute

rised b

ranch

es.

5.8

Scre

enin

g/s

ele

ctio

n o

f em

plo

yees in

ED

P c

ells

, com

pute

r are

as.

5.9

Repla

cem

ent of

un

will

ing w

ork

ers

in c

om

pute

r are

a.

5.1

1S

uggestio

n f

rom

pre

ventiv

e v

igila

nce a

ngle

in c

om

pute

r in

sta

llatio

ns.

5.1

2T

o o

bta

in in

su

rance c

over

in r

espect of

risks in

com

pute

r are

a.

Gro

up-B

Part

-I

8.9

Banks to in

troduce p

ort

folio

inspectio

ns p

art

icula

rly in

critic

al/s

ensiti

ve

are

as, such

as c

redit,

investm

ent, o

ff b

ala

nce s

heet ite

ms e

tc.

10

.4P

eriodic

al m

eetin

gs b

etw

een b

ank o

ffic

ials

and in

vestig

atin

g o

ffic

ials

of

CB

I/P

olic

e.

11

.10

Six

month

s p

rior

to the r

etir

em

ent off

icia

ls s

hould

exe

rcis

e their s

anctio

nin

g

pow

ers

join

tly w

ith n

ext

hig

her

auth

ority

.

Gro

up-B

Part

-II

1.2

2P

aper

used f

or

cheques/d

raft

s s

hould

be s

uch

that any u

se o

f c

hem

icals

for

makin

g m

ate

rial a

ltera

tions in

the in

str

um

ent s

hould

be v

isib

le to the

naked e

ye.

Page 6

GH

OS

H C

OM

MIT

TE

E R

EC

OM

ME

ND

AT

ION

S :

Im

ple

men

tati

on

Sta

tus a

s a

t 31

st

Marc

h 2

015

Sr.

No

.N

atu

re o

f R

ec

om

men

dati

on

Ye

sN

o N

.A.

TO

TA

LY

es

No

N.A

.T

OT

AL

Imp

lem

en

tati

on

sta

tus

at

Bra

nc

hIm

ple

me

nta

tio

n s

tatu

s a

t R

O/Z

O/H

O

Gro

up-C

Part

-I

9.6

Chie

f V

igila

nce O

ffic

er

should

directly

refe

r to

CV

C, cases h

avin

g v

igila

nce

angle

involv

ing C

MD

.

9.1

Fra

ud c

ases u

pto

Rs.2

500

0/-

havin

g in

volv

em

ent of

an in

sid

er

should

not

be r

eport

ed to P

olic

e w

here

recovery

is n

ot doubtf

ul.

11

.8B

anks s

hould

intr

oduce a

retu

rn f

or

sta

ff m

em

bers

to e

nsu

re s

tric

t

subm

issio

n o

f th

e in

form

atio

n o

f assets

and li

abili

ties a

nd p

roper

scru

tiny

there

of.

Gro

up-D

Part

- I

4.8

BR

s s

hould

not be o

uts

tandin

g f

or

more

than 7

days.

11

.8B

anks s

hould

intr

oduce a

retu

rn f

or

sta

ff m

em

bers

to e

nsu

re s

tric

t

subm

issio

n o

f th

e in

form

atio

n o

f assets

& li

abili

ties a

nd p

roper

scru

tiny

there

of.

Gro

up-D

Part

- I

I

1.1

2O

bta

inin

g p

hoto

gra

ph o

f deposito

rs a

t th

e tim

e o

f openin

g o

f accoun

ts.

Pla

ce:

Date

:C

hart

ere

d A

ccoun

tant

Sig

natu

re o

f B

ranch

/Regio

nal/Z

onal H

ead

Page 7

GH

OS

H C

OM

MIT

TE

E R

EC

OM

ME

ND

AT

ION

S :

Im

ple

men

tati

on

Sta

tus a

s a

t 31

st

Marc

h 2

015

Sr.

No

.N

atu

re o

f R

ec

om

men

dati

on

Ye

sN

o N

.A.

TO

TA

LY

es

No

N.A

.T

OT

AL

Imp

lem

en

tati

on

sta

tus

at

Bra

nc

hIm

ple

me

nta

tio

n s

tatu

s a

t R

O/Z

O/H

O

Page 8

Bra

nch:

Regio

n:

Z

one:

CE

RT

IFIC

AT

E-6

Sr.

No

.

Reco

mm

en

dati

on

No

.

Natu

re o

f R

eco

mm

en

dati

on

Yes

No

N

.A.

TO

TA

LY

es

No

N

.A.

TO

TA

L

14

Co-o

rdin

atio

n b

etw

een in

spectio

n a

nd o

pera

tional w

ings b

e e

nsu

red f

or

bringin

g a

bout positi

ve c

hanges in

fun

ctio

nin

g o

f th

e b

ank.

26

Pro

file

s o

f bank b

ranch

es b

e m

ain

tain

ed o

n c

om

pute

r on p

erf

orm

ance in

thru

st are

as li

ke a

udit

ratin

gs, assets

qualit

y, le

vel o

f N

PA

's, re

venu

e le

akages, pro

fita

bili

ty, etc

. fo

r enablin

g the b

ank to p

inpoin

t in

adequacie

s/s

et-

off

trig

ger

for

takin

g r

em

edia

l actio

n. C

om

pute

r data

on b

ranch

es in

report

ing c

om

plia

nce to h

elp

Audit

Com

mitt

ee

and Z

O/H

O f

un

ctio

naries a

lso b

e m

ain

tain

ed.

38

Bro

ad g

uid

elin

es to e

sta

blis

h a

ccoun

tabili

ty f

or

inspecto

rs/a

udito

rs s

hould

be la

id d

ow

n.

415

Develo

pm

ent of

data

base o

n tra

inin

g in

vento

ry o

f each in

specto

r/audito

r fo

r th

e im

pro

vem

ent and u

pdatin

g their

know

ledge b

y C

entr

al A

udit

and Inspectio

n D

epart

ment/Z

O's

/RO

's/Inspecto

rate

s.

518

A c

opy o

f bookle

t/com

pendiu

m o

f in

str

uctio

ns in

corp

ora

ting R

BI norm

s, circula

rs, etc

. to

be s

upplie

d to e

ach

inspectin

g/a

uditi

ng o

ffic

ial b

y Inspectio

n a

nd A

udit

Depart

ment periodic

ally

(pre

fera

bly

yearly).

620

Revenu

e/in

com

e a

udit

should

be c

onducte

d a

t cert

ain

sele

ct bra

nch

es/b

ranch

es w

here

leakages n

otic

ed (

but

not in

those w

here

concu

rrent audit

has b

een u

ndert

aken).

721

Every

bank s

hould

have a

manu

al o

f in

str

uctio

ns f

or

its in

specto

rs/a

udito

rs a

nd p

eriodic

ally

update

the s

am

e.

823

Inspectio

n/a

udit

of

any b

ranch

should

not be c

ontin

ued b

eyond tw

o m

onth

s e

xcept very

larg

e b

ranch

es f

or

whic

h thre

e m

onth

s w

ould

be s

uff

ice.

924

All

poorly r

ate

d b

ranch

es s

hould

be in

specte

d w

ithin

12

month

s a

nd o

thers

betw

een 1

2-1

8 m

onth

s f

rom

the

date

of

pre

vio

us in

spectio

n.

10

25

Inspectio

n/a

udit

report

form

at should

be u

pdate

d p

eriodic

ally

incorp

ora

ting c

hanges in

pro

ducts

, syste

ms,

pro

cedure

s, etc

. check-lis

t of

majo

r and s

erious ir

regula

ritie

s in

various a

reas o

f bankin

g o

pera

tions to b

e

pro

vid

ed to in

specto

rs/a

udito

rs. A

n e

xecutiv

e s

um

mary

should

be p

repare

d b

y the in

spectin

g o

ffic

er

for

every

inspectio

n f

or

subm

ittin

g to h

igher

auth

oritie

s.

11

30

Banks s

hould

have a

syste

m f

or

ratin

g it

s b

ranch

es o

n the b

asis

of

inspectio

n r

eport

s a

nd the r

atin

g s

yste

m to

be r

evie

wed p

eriodic

ally

.

12

32

A c

om

pute

rised tra

ck r

ecord

of

eff

icie

ncy r

atin

gs o

ver

the p

revio

us 4

-5 in

spectio

n to b

e m

ain

tain

ed in

the

inspecto

rate

with

periodic

al u

pdatio

ns a

nd s

ubm

issio

ns to the f

un

ctio

naries.

13

39

Follo

w-u

p o

n m

ajo

r/serious ir

regula

ritie

s d

ete

cte

d d

uring c

oncu

rrent a

udit

to b

e im

media

tely

taken u

p w

ith th

e

HO

. A

tim

e-b

oun

d a

ctio

n p

rogra

mm

e f

or

rectif

icatio

n to b

e d

raw

n u

p a

nd c

losely

monito

red. F

raudule

nt

transactio

ns to b

e r

eport

ed to v

igila

nce/c

hie

f of

inspectio

n/a

udit

etc

.

14

41

Sm

alle

r/m

ediu

m s

ized bra

nch

es to r

ectif

y ir

regula

ritie

s poin

ted o

ut during in

spectio

n/a

udit

with

in 4

month

s.

15

44

Inspecto

rs/a

udito

rsto

get

majo

rity

of

irre

gula

ritie

sre

ctif

ied

during

their

sta

yat

the

bra

nch

es

concern

ed

and

guid

e them

as w

ell.

No

te :

If

co

mm

en

ts o

n a

ny ite

m is o

ther

than

Yes o

r N

.A.,

th

e b

ran

ch

mu

st

giv

e r

easo

ns f

or

the s

am

e f

or

the s

am

e in

'Rem

ark

s' co

lum

n a

nd

Reg

ion

al O

ffic

es s

ho

uld

fo

llo

w u

p t

o r

ecti

fy t

he s

am

eIm

ple

men

tati

on

sta

tus a

t

Bra

nch

Imp

lem

en

tati

on

sta

tus a

t

RO

/ZO

/HO

BA

NK

OF

BA

RO

DA

JIL

AN

I C

OM

MIT

TE

E

RE

CO

MM

EN

DA

TIO

NS

:

imp

lem

en

tati

on

sts

tus a

s s

t 31st

Marc

h 2

015

Page 1

Bra

nch:

Regio

n:

Z

one:

CE

RT

IFIC

AT

E-6

Sr.

No

.

Reco

mm

en

dati

on

No

.

Natu

re o

f R

eco

mm

en

dati

on

Yes

No

N

.A.

TO

TA

LY

es

No

N

.A.

TO

TA

L

No

te :

If

co

mm

en

ts o

n a

ny ite

m is o

ther

than

Yes o

r N

.A.,

th

e b

ran

ch

mu

st

giv

e r

easo

ns f

or

the s

am

e f

or

the s

am

e in

'Rem

ark

s' co

lum

n a

nd

Reg

ion

al O

ffic

es s

ho

uld

fo

llo

w u

p t

o r

ecti

fy t

he s

am

eIm

ple

men

tati

on

sta

tus a

t

Bra

nch

Imp

lem

en

tati

on

sta

tus a

t

RO

/ZO

/HO

BA

NK

OF

BA

RO

DA

JIL

AN

I C

OM

MIT

TE

E

RE

CO

MM

EN

DA

TIO

NS

:

imp

lem

en

tati

on

sts

tus a

s s

t 31st

Marc

h 2

015

16

45

Imm

edia

teactio

nto

be

taken

toplu

ggaps

inserious

irre

gula

ritie

s/r

evenu

ele

akages,

whic

hhave

surf

aced

due

tolo

ophole

sin

exi

stin

gpro

cedure

s,

abnorm

aldevia

tions

from

laid

dow

npro

cedure

s/n

orm

sin

consu

ltatio

nw

ith

the d

epart

ments

concern

ed b

y is

sue o

f fr

esh g

uid

elin

es.

17

46

There

isscope

for

Audit

Com

mitt

ee

tobro

aden

itsdom

ain

and

eff

ectiv

eness

thro

ugh

stu

dy

of

additi

onalare

as

like

frauds,

pro

gre

ss

inA

FI

conducte

dby

RB

I,in

ter-

bra

nch

/inte

r-bank

reconcili

atio

netc

.and

the

frequency

of

Com

mitt

ee

meetin

gs.

Banks

should

have

str

uctu

red

item

sfo

rdis

cussio

nby

the

Audit

Com

mitt

ee

and

decid

e

the p

eriodic

ity o

f th

e A

udit

Com

mitt

ee m

eetin

gs.

18

49

Inspectio

nfindin

gs

rela

ting

tofr

auds

dete

cte

dduring

inspectio

nand

matters

involv

ing

mala

fides

corr

upt

pra

ctic

es

and

gro

ss

indis

cip

line

should

be

subm

itted

as

specia

lre

port

toth

econcern

ed

auth

oritie

sfo

rin

itiatin

g

actio

nand

notto

be

inclu

ded

inre

gula

rre

port

.T

hese

report

sshould

be

thoro

ughly

scru

tiniz

ed

by

the

auth

oritie

s

concern

ed

and

short

com

ings/g

aps/la

cun

ae

that

contr

ibute

dto

such

even

tsshould

be

rem

oved

by

polic

y

decis

ions.

19

53

Appro

priate

contr

olm

easure

sshould

be

devis

ed

and

docum

ente

dto

pre

ventth

ecom

pute

rsyste

mfr

om

attacks

of

un

scru

pulo

us

ele

ments

.A

llaspects

of

security

,re

liabili

tyand

accessib

ility

are

ensu

red

befo

rein

troductio

n

of

ED

P a

pplic

atio

n in

pla

ce o

f m

anu

al s

yste

m b

y h

avin

g pilo

t para

llel r

un

s.

20

54

Various

tests

tobe

carr

ied

out

toensu

reth

at

ED

Papplic

atio

ns

have

resulte

din

consis

tent

and

relia

ble

syste

m

for

inputtin

g, pro

cessin

g a

nd genera

tion o

f outp

ut of

data

.

21

56

While

engagin

gth

eouts

ide

com

pute

ragencie

s,

banks

should

ensu

reto

incorp

ora

teth

e"c

lause

of

vis

itorial

rights

"in

the

contr

act

tohave

the

right

toin

spect

the

pro

cess

of

applic

atio

nand

ensu

reth

esecurity

of

the

data

/inputs

giv

en to o

uts

ide a

gencie

s.

22

59

Entir

edom

ain

of

ED

Pactiv

ities

be

bro

ught

un

der

scru

tiny

of

Inspectio

nand

Audit

inclu

din

gth

eun

derlyin

g

financia

l aspects

.

23

61

Inord

er

tobring

about

un

iform

ityof

soft

ware

used

by

various

bra

nch

es/

off

ices,

there

should

be

afo

rmal

meth

od

of

incorp

ora

ting

change

insta

ndard

soft

ware

and

itshould

be

appro

ved

by

senio

rm

anagem

ent.

Such

changes to b

e in

specte

d a

nd m

onito

red c

ontin

uously

.

24

71

Banks

should

com

ple

teenquirie

sexp

editi

ously

,and

bring

tobook

the

delin

quent

sta

ffto

dete

roth

ers

from

perp

etu

atin

gfr

auds

and

malp

ractic

es

Inte

rnet

vig

ilance

machin

ery

tobe

str

ength

ened

and

itsw

ork

ing

tobe

revie

wed b

y the B

oard

every

six

month

s.

25

74

Regula

rcheckin

gby

inspecto

rs/a

udito

rsto

verify

corr

ectn

ess

of

info

rmatio

ncom

pile

d/f

urn

ished

by

bra

nch

es

regard

ing

incom

ere

cogniti

on,

assets

cla

ssific

atio

n,

pro

vis

ionin

g,

and

NP

Aquantif

icatio

nin

confo

rmity

with

pre

scribed

norm

s.

Dis

cre

pancy

tobe

imm

edia

tely

bro

ught

toth

enotic

eof

Bra

nch

Manager

for

rectif

icatio

non

the s

pot.

Pla

ce:

Date

:C

hart

ere

d A

ccoun

tant

Sig

natu

re o

f B

ranch

/Regio

nal/Z

onal H

ead

Page 2

1

CERTIFICATE- 8

BANK OF BARODA


Branch___________________Region:__________________Zone:________________

Information in respect of Restructuring of Advance Accounts As on 31st March 2015

A-I) Information in respect of Restructuring of Advance Accounts done up to 31.03.2008

(Rs. in ‘000’)

CDR SME Others Mechanism Restructuring

Standard Advances Restructured

No. of Borrowers

Amount Outstanding as on 31-03-2015

of borrowers whose accounts were restructured

Ø In all fund based facilities

Ø In all Non fund based facilities

Amount Outstanding as on 31-03-2015 in the restructured facility/ies

of above borrowers

Amount of Interest Sacrifice

Sub-standard Advances Restructured

No. of Borrowers

Amount Outstanding as on 31-03-2015 of borrowers whose accounts

were restructured Ø In all fund based facilities Ø In all Non fund based facilities

Amount Outstanding as on 31-03-2015 in the restructured facility/ies of above borrowers


Doubtful Advances Restructured

No. of Borrowers





Amount Outstanding as on 31-03-

2015 in the restructured facility/ies of above borrowers


TOTAL No. of Borrowers

Amount Outstanding as on 31-03-2015 of borrowers whose accounts were restructured

Ø In all fund based facilities Ø In all Non fund based facilities




2

A-II) Information in respect of Restructuring of Advance Accounts done during the period 01.04.2008 to 26.08.2008 (Rs. in ‘000’)



No. of Borrowers


were restructured Ø In all fund based facilities Ø In all Non fund based facilities




No. of Borrowers







No. of Borrowers





Amount Outstanding as on 31-03-2015 in the restructured facility/ies

of above borrowers


TOTAL

No. of Borrowers





3

B) Information in respect of Restructuring of Advance Accounts WITH OUTSTANDING LESS THAN RS. 1.00 CRORE done from 27.08.2008 to 31.03-

2009) (Rs in ‘000’ )



No. of Borrowers


Ø In all fund based facilities Ø In all Non fund based

facilities


Sacrifice (diminution in the fair value)

Sub-standard

Advances Restructured

No. of Borrowers


2015 of borrowers whose accounts were restructured


facilities

Amount Outstanding as on 31-03-2015 in the restructured

facility/ies of above borrowers



No. of Borrowers


2015 of borrowers whose a/cs

were restructured


facilities




TOTAL

No. of Borrowers

Amount Outstanding as on 31-03-- -2015 of borrowers whose accounts were restructured



Amount Outstanding as on 31-

03-2015 in the restructured facility/ies of above borrowers

Sacrifice (dim. in the fair value)

4

C) Information in respect of Restructuring of Advance Accounts WITH OUTSTANDING OF RS. 1.00 CRORE AND ABOVE done from 27.08.2008 to 31.03.2009

(Rs in ‘000’ )


Standard


No. of Borrowers


were restructured Ø In all fund based facilities Ø In all Non fund based

facilities




Sub-standard


No. of Borrowers




facilities





No. of Borrowers



facilities




TOTAL

No. of Borrowers








5

D) Information in respect of restructuring of Advance Accounts WITH OUTSTANDING LESS THAN RS. 1.00 CRORE done during FY 2009-10 (i.e. 01-04-

2009 to 31.03-2010)

(Rs in ‘000’ )

CDR SME Others

Mechanism Restructuring

Standard


No. of Borrowers







Sacrifice (diminution in the

fair value)


No. of Borrowers

Amount Outstanding as on 31-03-2015 of borrowers whose a/cs were restructured


facilities




No. of Borrowers



facilities




fair value)

TOTAL

No. of Borrowers






6

E) Information in respect of Restructuring Accounts WITH OUTSTANDING OF RS. 1.00 CRORE AND ABOVE done during FY 2009-10 (i.e. 01-04-2009 to 31.03.2010)

(Rs in ‘000’ )

CDR SME Others



No. of Borrowers








fair value)


No. of Borrowers


03-2015 of borrowers whose a/cs were restructured


facilities




No. of Borrowers


03-2015 of borrowers whose a/cs

were restructured


facilities



TOTAL

No. of Borrowers



facilities




7

F) Information in respect of restructuring of Advance Accounts WITH OUTSTANDING LESS THAN RS. 1.00 CRORE done during FY 2010-11 (i.e. 01-04-2010 to 31.03-2011)

(Rs in ‘000’ )



No. of Borrowers



facilities





No. of Borrowers







fair value)

Doubtful


No. of Borrowers


03-2015 of borrowers whose a/cs were restructured


facilities



TOTAL

No. of Borrowers




facilities




8

G) Information in respect of Restructuring Accounts WITH OUTSTANDING OF RS. 1.00 CRORE AND ABOVE done during FY 2010-11 (i.e. 01-04-2010 to 31.03.2011)

(Rs in ‘000’ )

CDR SME Others


Standard


No. of Borrowers



facilities





No. of Borrowers







fair value)

Doubtful


No. of Borrowers



were restructured


facilities



TOTAL

No. of Borrowers



facilities



9

H) Information in respect of restructuring of Advance Accounts WITH OUTSTANDING

LESS THAN RS. 1.00 CRORE done during FY 2011-12 (i.e. 01-04-2011 to 31.03-2012)

(Rs in ‘000’ )

CDR SME Others


Standard


No. of Borrowers








fair value)


No. of Borrowers



facilities




No. of Borrowers



facilities




TOTAL

No. of Borrowers



facilities



10

I) Information in respect of Restructuring Accounts WITH OUTSTANDING OF RS. 1.00 CRORE AND ABOVE done during FY 2011-12 (i.e. 01-04-2011 to 31.03.2012)

(Rs in ‘000’ )

CDR SME Others


Standard


No. of Borrowers



facilities




fair value)

Sub-standard


No. of Borrowers


2015 of borrowers whose a/cs were restructured


facilities



Doubtful


No. of Borrowers



were restructured


facilities




TOTAL

No. of Borrowers






11

J) Information in respect of restructuring of Advance Accounts WITH OUTSTANDING LESS THAN RS. 1.00 CRORE done during FY 2012-13 (i.e. 01-04-2012 to 31.03-

2013)

(Rs in ‘000’ )

CDR SME Others


Standard


No. of Borrowers








fair value)


No. of Borrowers



facilities




No. of Borrowers



facilities




fair value)

TOTAL

No. of Borrowers






12

K) Information in respect of Restructuring Accounts WITH OUTSTANDING OF RS. 1.00 CRORE AND ABOVE done during FY 2012-13 (i.e. 01-04-2012 to 31.03.2013)

(Rs in ‘000’ )

CDR SME Others


Standard


No. of Borrowers



facilities





No. of Borrowers







fair value)

Doubtful


No. of Borrowers



were restructured


facilities



TOTAL

No. of Borrowers



facilities



13

L) Information in respect of restructuring of Advance Accounts WITH OUTSTANDING LESS THAN RS. 1.00 CRORE done during FY 2013-14 (i.e. 01-04-2013 to 31.03-

2014)

(Rs in ‘000’ )

CDR SME Others


Standard


No. of Borrowers








fair value)


No. of Borrowers



facilities




No. of Borrowers



facilities




fair value)

TOTAL

No. of Borrowers






14

M) Information in respect of Restructuring Accounts WITH OUTSTANDING OF RS. 1.00 CRORE AND ABOVE done during FY 2013-14 (i.e. 01-04-2013 to 31.03.2014)

(Rs in ‘000’ )

CDR SME Others


Standard


No. of Borrowers



facilities





No. of Borrowers







fair value)

Doubtful


No. of Borrowers



were restructured


facilities



TOTAL

No. of Borrowers



facilities



15

N) Information in respect of restructuring of Advance Accounts WITH OUTSTANDING LESS THAN RS. 1.00 CRORE done during FY 2014-15 (i.e. 01-04-2014 to 31.03-

2015)

(Rs in ‘000’ )

CDR SME Others


Standard


No. of Borrowers








fair value)


No. of Borrowers



facilities




No. of Borrowers



facilities




fair value)

TOTAL

No. of Borrowers






16

O) Information in respect of Restructuring Accounts WITH OUTSTANDING OF RS. 1.00 CRORE AND ABOVE done during FY 2014-15 (i.e. 01-04-2014 to 31.03.2015)

(Rs in ‘000’ )

CDR SME Others


Standard


No. of Borrowers



facilities





No. of Borrowers







fair value)


No. of Borrowers



were restructured


facilities



TOTAL

No. of Borrowers



facilities




17

P) Details of financial assets sold to securitisation / Reconstruction Company for

Asset Reconstruction (Rs. in ‘000’)

Items Current Year (2014-15)

Previous Year (2013-14)

(i) No. of Accounts

(ii) Aggregate value ( net of

provisions) of accounts sold to SC/ RC

(iii) Aggregate consideration

(iv) Additional consideration realized in respect of accounts

transferred in earlier years

(v) Aggregate gain / loss over Net Book Value

Place:

CHARTERED ACCOUNTANT BRANCH / REGIONAL /ZONAL HEAD

Date:

Note : The Consolidated certificate of the Zone to be signed by Zonal Head and Zone’s Central Statutory Auditors.

18

Annexure - I (A) of Cer.8

Statement of all Advances Restructured on or before 26-08-2008 where provision is to be

made for Interest sacrifice as on 31.03.2015

(Rs. in ‘000)

Branch: Region: Zone:

Sr. Name of the borrower Segment

Amount O/S as on

31-03-2015 in all FB & NFB faclilities

Amt O/S in

Restructur

ed facilities

as on

31.03.2015

Amount of

Interest Sacrifice

No. (WB / SME/

Retail / Agrl.)

FB NFB

(A) STANDARD

Advances Restructured Upto 31.03.2008

01

02

03

Total (a)

Advances Restructured during the period 01.04.2008 to 26.08.2008

01

02

03

Total (b)

Sub-total (A) (a+b)

(B) SUB-STANDARD


01

02

Total (a)


01

02

Total (b)

Sub-total (B) (a+b)

(C) DOUBTFULL


01

02

Total (a)


01

02

Total (b)

Sub-total (C) (a+b)

TOTAL (D) (A+B+C)

Note: The sub-totals (A), (B) & (C) and Total (D) should tally with respective figures reported in Certificate: 8 – Part A-I & Part A-II. Please also indicate with the borrower name if it is under CDR Mechanism.

19

Annexure – I (B) of Cer.8 Consolidated position as on 31-03.2015 in respect of the Advance accounts restructured during the period

27.08.08 to 31.03.09 with the total dues to Bank less than Rs. 1.00 crore at the time of restructuring Branch: Region: Zone:

(Rs. in ‘000)

Segment

Wholesale SME Retail Agrl. TOTAL

(A) Standard Advances Restructured

(a) No. of Borrowers

(b)

Amount outstanding as on 31-03-2015 of borrowers whose a/cs were restructured


(c) Amount Outstanding in

the restructured facilities of above borrowers as on 31.03.2015

(d) Sacrifice Amount

(diminution in the fair value)

i.e. 5% of the O/S amount

(B) Sub-Standard Advances Restructured


(b)




(c) Amount Outstanding in the restructured facilities of above borrowers as on 31.03.2015


(diminution in the fair

value) i.e. 5% of the O/S amount

(C) Doubtful Advances Restructured


(b)

Amount outstanding as on 31-03-

2015 of borrowers whose a/cs were restructured


facilities




value) i.e. 5% of the O/S

Amount

Note: Branch to ensure that the Asset classification wise total should tally with the respective figures reported in the Certificate- 8 – Part B.

Please also mention below the details of the accounts restructured under CDR Mechanism out of the above borrowers.

20

Annexure – I (C) of Cer.8

Statement of Advances Restructured during the period 27-08-2008 to 31-03-2009 where

total dues to bank was Rs. 1/- crore & above at the time of restructuring and where sacrifice amount to be re-computed based on diminution in fair value of advance as on 31.03.2015.

Branch: Region: Zone: (Rs. in ‘000)

Sr. Name of the borrower Segment (WB / SME/ Retail /

Agrl.)

Amount O/S as on 31-03-2015 in all FB & NFB

faclilities

Amt O/S in

Restructured

facilities as

on

31.03.2015

Sacrifice

No. Amount

(Diminutio

n in

fair value of

advance)

FB NFB

(A) STANDARD

01

02

03

04

05

06

07

08

09

10

Sub-total (A)

(B) SUB-STANDARD

01

02

03

Sub-total (B)

(C) DOUBTFULL

01

02

03

Sub-total (C)

TOTAL (D)

(A+B+C)

Note: The sub-totals (A), (B) & (C) and Total (D) should tally with the respective figures reported in the Certificate - 8 - Part-C. Please also indicate with the borrower name if it is under CDR Mechanism.

21

Annexure – I (D) of Cer.8

Consolidated position as on 31-03.2015 in respect of the Advance accounts restructured during the period 01.04.09 to 31.03.10 with the total dues to Bank less than Rs. 1.00 crore at the time of restructuring


(Rs. in ‘000)

Segment




(b)

Amount outstanding as on 31-03-2015 of borrowers whose a/cs were

restructured Ø In all fund based facilities Ø In all Non fund based facilities





value) i.e. 5% of the O/S Amount



(b)









(b)

Amount outstanding as on 31-03-2015 of borrowers whose a/cs were restructured Ø In all fund based facilities





value) i.e. 5% of the O/S amount

Note: Branch to ensure that the Asset classification wise total should tally with the respective

figures reported in the Certificate- 8 – Part D. Please also mention below the details of the accounts restructured under CDR Mechanism out of the above borrowers.

22

Annexure – I (E) of Cer.8

Statement of Advances Restructured during the period 01-04-2009 to 31-03-2010 where total dues to bank was Rs. 1/- crore & above at the time of restructuring and where sacrifice amount to be re-computed based on diminution in fair value of advance as on

31.03.2015.


(Rs. in ‘000)

Sr. Name of the borrower Segment (WB /

SME/ Retail /

Agrl.)

Amount O/S as on 31-03-2015 in all

FB & NFB facilities

Amt O/S in

Restructured

facilities as on

31.03.2015

Sacrifice

No. Amount

(Diminution in

fair value of

advance)

FB NFB

(A) STANDARD

01

02

03

04

05

06

07

08

09

10

Sub-total (A)

(B) SUB-STANDARD

01

02

03

Sub-total (B)

(C) DOUBTFULL

01

02

03

Sub-total (C)

TOTAL (D)

(A+B+C)

Note: The sub-totals (A), (B) & (C) and Total (D) should tally with the respective figures reported in the Certificate - 8 - Part-E. Please also indicate with the borrower name if it is under CDR Mechanism.

23

Annexure – I (F) of Cer.8

Consolidated position as on 31-03.2015 in respect of the Advance accounts restructured during the period 01.04.2010 to 31.03.2011 with the total dues to Bank less than Rs. 1.00 crore at the time of restructuring


(Rs. in ‘000)

Segment




(b)










(b)









(b)

Amount outstanding as on 31-03-2015 of borrowers whose a/cs were restructured Ø In all fund based facilities






Amount

Note: Branch to ensure that the Asset classification wise total should tally with the respective figures reported in the Certificate- 8 – Part F.


24

Annexure – I (G) of Cer.8

Statement of Advances Restructured during the period 01-04-2010 to 31-03-2011 where

total dues to bank was Rs. 1/- crore & above at the time of restructuring and where sacrifice amount to be re-computed based on diminution in fair value of advance as on 31.03.2015.



Agrl.)


facilities’

Amt O/S in

Restructured

facilities as

on

31.03.2015

Sacrifice

No. Amount

(Diminution

in

fair value of

advance)

FB NFB

(A) STANDARD

01

02

03

04

05

06

07

08

09

10

11

Sub-total (A)

(B) SUB-STANDARD

01

02

03

Sub-total (B)

(C) DOUBTFULL

01

02

03

Sub-total (C)

TOTAL (D)

(A+B+C)

Note: The sub-totals (A), (B) & (C) and Total (D) should tally with the respective figures

reported in the Certificate - 8 - Part-G. Please also indicate with the borrower name if it is under CDR Mechanism.

25

Annexure – I (H) of Cer.8

Consolidated position as on 31-03-2015 in respect of the Advance accounts restructured during the period 01-04-11 to 31-03-12 with the total dues to Bank is less than Rs. 1.00 crore at the time of restructuring


(Rs. in ‘000)

Segment




(b)










(b)









(b)



(c) Amount Outstanding in the restructured facilities of above

borrowers as on 31.03.2015




Note: Branch to ensure that the Asset classification wise total of Annexure I (H) should tally

with the respective figures reported in the Certificate- 8 – Part H. Please also mention below the details of the accounts restructured under CDR Mechanism out of the above borrowers.

26

Annexure – I (I) of Cer.8

Statement of Advances Restructured during the period 01-04-2011 to 31-03-2012 where total dues to bank is Rs. 1/- crore & above at the time of restructuring and where sacrifice amount to be computed based on diminution in fair value of advance as on 31.03.2015.



Agrl.)


facilities

Amt O/S in

Restructured

facilities as

on

31.03.2015

Sacrifice

No. Amount

(Diminution in

fair value of advance)

FB NFB

(A) STANDARD

01

02

03

04

05

06

07

08

09

10

11

Sub-total (A)

(B) SUB-STANDARD

01

02

03

Sub-total (B)

(C) DOUBTFULL

01

02

03

Sub-total (C)

TOTAL (D)

(A+B+C)

Note: The sub-totals (A), (B) & (C) and Total (D) of annexure I (I) should tally with the

respective figures reported in the Certificate - 8 - Part-I. Please also indicate with the borrower name if it is under CDR Mechanism.

27

Annexure – I (J) of Cer.8

Consolidated position as on 31-03-2015 in respect of the Advance accounts restructured during the period 01-04-12 to 31-03-13 with the total dues to Bank is less than Rs. 1.00 crore at the time of restructuring


(Rs. in ‘000)

Segment




(b)










(b)









(b)








Note: Branch to ensure that the Asset classification wise total of Annexure I (J) should

tally with the respective figures reported in the Certificate- 8 – Part J. Please also mention below the details of the accounts restructured under CDR Mechanism out of the above borrowers.

28

Annexure – I (K) of Cer.8

Statement of Advances Restructured during the period 01-04-2012 to 31-03-2013 where total dues to bank is Rs. 1/- crore & above at the time of restructuring and where sacrifice amount to be computed based on diminution in fair value of advance as on 31.03.2015.



Agrl.)


facilities’

Amt O/S in

Restructured

facilities as

on

31.03.2015

Sacrifice

No. Amount

(Diminution in


FB NFB

(A) STANDARD

01

02

03

04

05

06

07

08

09

10

11

Sub-total (A)

(B) SUB-STANDARD

01

02

03

Sub-total (B)

(C) DOUBTFULL

01

02

03

Sub-total (C)

TOTAL (D)

(A+B+C)

Note: The sub-totals (A), (B) & (C) and Total (D) of annexure I (K) should tally with the

respective figures reported in the Certificate - 8 - Part-K. Please also indicate with the borrower name if it is under CDR Mechanism.

29

Annexure – I (L) of Cer.8

Consolidated position as on 31-03-2015 in respect of the Advance accounts restructured during the period 01-04-2013 to 31-03-2014 with the total dues to Bank less than Rs. 1.00 crore


(Rs. in ‘000)

Segment




(b)


restructured Ø In all fund based facilities Ø In all Non fund based

facilities


the restructured facilities of above







(b)










(b)








Note: Branch to ensure that the Asset classification wise total of Annexure I (L) should

tally with the respective figures reported in the Certificate- 8 (Revised) – Part L. Please also mention below the details of the accounts restructured under CDR Mechanism out of the above borrowers.

30

Annexure – I (M) of Cer.8

Statement of Advances Restructured during the period 01-04-2013 to 31-03-2014 where total dues to bank is Rs. 1/- crore & above and where sacrifice amount to be computed based on diminution in fair value of advance as on 31.03.2015.


(Rs. in ‘000)


SME/ Retail /

Agrl.)


FB & NFB facilities

Amt O/S in

Restructure

d facilities

as on

31.03.2015

Sacrifice

No. Amount

(Diminution

in


FB NFB

(A) STANDARD

01

02

03

04

05

06

07

08

09

10

11

Sub-total (A)

(B) SUB-STANDARD

01

02

03

Sub-total (B)

(C) DOUBTFULL

01

02

03

Sub-total (C)

TOTAL (D)

(A+B+C)

Note: The sub-totals (A), (B) & (C) and Total (D) of annexure I (M) should tally with the respective figures reported in the Certificate - 8 - Part-M. Please also indicate with the borrower name if it is under CDR Mechanism.

31

Annexure – I (N) of Cer.8



(Rs. in ‘000)

Segment




(b)










(b)









(b)








Amount

Note: Branch to ensure that the Asset classification wise total of Annexure I (N) and Annexure I (P) should tally with the respective figures reported in the Certificate- 8 (Revised) – Part N.


32

Annexure – I (O) of Cer.8

Statement of Advances Restructured during the period 01-04-2014 to 31-12-2014 where total dues to bank is Rs. 1/- crore & above and where sacrifice amount to be computed based on diminution in fair value of advance as on 31.03.2015.


(Rs. in ‘000)


SME/ Retail /

Agrl.)


FB & NFB facilities’

Amt O/S in

Restructure

d facilities

as on

31.03.2015

Sacrifice

No. Amount

(Diminution

in


FB NFB

(A) STANDARD

01

02

03

04

05

06

07

08

09

10

11

Sub-total (A)

(B) SUB-STANDARD

01

02

03

Sub-total (B)

(C) DOUBTFULL

01

02

03

Sub-total (C)

TOTAL (D)

(A+B+C)

Note: The sub-totals (A), (B) & (C) and Total (D) of annexure I (O) & annexure I (Q) should tally with the respective figures reported in the Certificate - 8 - Part-O. Please also indicate with the borrower name if it is under CDR Mechanism.

33

Annexure – I (P) of Cer.8



(Rs. in ‘000)

Segment




(b)










(b)









(b)








Amount

Note: Branch to ensure that the Asset classification wise total of Annexure I (P) and Annexure I (N) should tally with the respective figures reported in the Certificate- 8 (Revised) – Part N.


34

Annexure – I (Q) of Cer.8 Statement of Advances Restructured during the period 01-01-2015 to 31-03-2015 where total dues to bank is Rs. 1/- crore & above and where sacrifice amount to be computed based on diminution in fair value of advance as on 31.03.2015.


(Rs. in ‘000)

Sr. Name of the borrower Segment

(WB / SME/ Retail /

Agrl.)

Amount O/S as on

31-03-2015 in all FB & NFB facilities

Amt O/S in

Restructure

d facilities

as on

31.03.2015

Sacrifice

No. Amount

(Diminution in

fair value

of advance)

FB NFB

(A) STANDARD

01

02

03

04

05

06

07

08

09

10

11

Sub-total (A)

(B) SUB-STANDARD

01

02

03

Sub-total (B)

(C) DOUBTFULL

01

02

03

Sub-total (C)

TOTAL (D)

(A+B+C)

Note: The sub-totals (A), (B) & (C) and Total (D) of annexure I (Q) & annexure I (O) should tally with the respective figures reported in the Certificate - 8 - Part-O. Please also indicate

with the borrower name if it is under CDR Mechanism.

35

Annexure – I (R) to Cer.8 Details of unsecured WCTL in standard and substandard advances restructured during the

period 02-01-2009 to 30-06-2009 under special regulatory treatment against which special provision is to be made at HO/BCC level.

(Rs. in ‘000)


Sr. No.

Name of the

borrower

Date of

restructuring

Segment

(WB / SME/ Retail / Agrl.)

Amount

Outstanding in WCTL as on 31.03.2015

Amount of

special provision against un secured WCTL

(A) STANDARD

01

02

03

04

05

Total A

(B) Sub Standard

01

02

03

Total B

TOTAL(A+B)

Please also indicate the borrower name if it is under CDR Mechanism.

1

Cert

ific

ate

8 A

Dis

clo

su

re o

f R

estr

uc

ture

d A

cc

ou

nts

(Rs.

in C

rore

)

Sl

N

o

Type o

f R

est

ruct

uring →

U

nder

CD

R M

echanis

m

Under

SM

E D

ebt

Rest

ructu

ring

Oth

ers

T

ota

l

Ass

et

Cla

ssific

ation

→

Standard

Sub-Standard

Doubtful

Loss

Total

Standard

Sub-Standard

Doubtful

Loss

Total

Standard

Sub-Standard

Doubtful

Loss

Total

Standard

Sub-Standard

Doubtful

Loss

Total

Deta

ils ↓

1

Rest

ructu

red

Accounts

as

on A

pril

1 o

f

the F

Y (

openin

g fig

ure

s)*

No.

of

borr

ow

ers

Am

ount

outs

tandin

g

Pro

vis

ion

there

on

2

Fre

sh

rest

ructu

ring d

uri

ng t

he y

ear

No.

of

borr

ow

ers

Am

ount

outs

tandin

g

Pro

vis

ion

there

on

3

Up g

radations

to

rest

ructu

red s

tandard

cate

gory

during t

he F

Y

No.

of

borr

ow

ers

Am

ount

outs

tandin

g

2

Pro

vis

ion

there

on

4

Rest

ructu

red

standard

advances

whic

h c

ease

to

att

ract

hig

her

pro

vis

ionin

g

and /

or

additio

nal

risk

w

eig

ht

at

the

end

of

th

e F

Y

and

hence

need

not

be

sho

wn

as

rest

ructu

red

standard

advances

at

the b

egin

nin

g

of

the n

ext F

Y

No.

of

borr

ow

ers

Am

ount

outs

tandin

g

Pro

vis

ion

there

on

5

Dow

n g

radations

of

rest

ructu

red a

ccounts

duri

ng the F

Y

No.

of

borr

ow

ers

Am

ount

outs

tandin

g

Pro

vis

ion

there

on

6

Write

-off

s of

rest

ruct

ure

d

accounts

during t

he F

Y

No.

of

borr

ow

ers

Am

ount

outs

tand

7

Rest

ructu

red

Accounts

as

on

No.

of

borr

ow

ers

F

Y (

closi

ng fig

ure

s*)

Am

ounto

uts

tand

ing

Pro

vis

ion

there

on

*

Excl

udin

g t

he fig

ure

s of

Sta

ndard

Rest

ructu

red A

dvances

whic

h d

o n

ot

att

ract hig

her

pro

vis

ionin

g o

r risk

weig

ht

(if

applic

able

)

Pla

ce

C

hart

ere

d A

ccounta

nt

B

ranch/R

egio

nal / Z

onal H

ead

Date

CERTIFICATE- 9

BANK OF BARODA

ANNUAL CLOSING FOR THE YEAR ENDED 31.03.2015

SUBVENTION CLAIM FOR INTEREST RELIEF FOR PROVIDING SHORT TERM

CREDIT TO FARMERS @7% FOR KHARIF & RABI – 2014 -2015

(For loans disbursed during 01.04.2014 to 31.03.2015)

STATEMENT FOR THE FULL YEAR ENDED MARCH 2015

Branch :__________________ Region:_____________ Zone:_______________

(Amount in Rupees)

Short Term Production credit provided @7%

p.a.

Amount of

subvention claimed

No. of Accounts Amount @2% as per scheme

Loans upto Rs.50,000/-

Loans above Rs. 50,000/-

and upto Rs. 3 lacs

TOTAL # ¨

# We certify having disbursed the above loans at 7% p.a. by way of short term production credit to the farmers during the year ended March 2015

¨ Subvention : Rs. ………………………………………………

¨ Balance outstanding against G/L (Cloret Code 2895– Finacle Code 26501085)

Rs. ……………………………

Chartered accountant Branch / Regional / Zonal Head

Date :

Place:

CERTIFICATE- 10

BANK OF BARODA


SUBVENTION CLAIM FOR INTEREST RELIEF FOR PROVIDING SHORT

TERM

CREDIT TO FARMERS @7% FOR CROP LOAN – 2013 -2014

(For Crop Loans Disbursed during 01.04.2013 to 31.03.2014 but

continued beyond 31.03.2014 upto due date or 12 months from the date

of disbursement, which ever is earlier.)

STATEMENT FOR THE PERIOD 01.04.2014 TO 31.03.2015

Branch :__________________ Region:_____________ Zone:_______________

(Amount in Rupees)

Short Term Production credit provided

@7% p.a.

Amount of

subvention claimed

No. of Accounts Amount @2.00% as per

scheme

Loans upto Rs.50,000/-

Loans above Rs. 50,000/-

and upto Rs. 3 lacs

TOTAL # ¨

# We certify having disbursed the above loans at 7% p.a. by way of short term production credit to the farmers during the year ended March 2014

¨ Subvention : Rs. ………………………………………………

Balance outstanding against G/L (Cloret Code 2993 – Finacle Code 26501078)

Rs. ……………………………

Please note that whole year subvention claim submitted in March 2014 plus additional

claims now submitted will be equal to balance outstanding in Cloret Code 2993 & Finacle

code 26501078.

Chartered Accountant Branch / Regional / Zonal Head

Date:

Place:

CERTIFICATE-12

BANK OF BARODA

CLAIM FOR THREE PERCENT INCENTIVE FOR TIMELY REPAYMENT OF

SHORT TERM CROP LOAN TO FARMERS DISBURSED IN 2013 -2014 AND

LOAN REPAID ON OR BEFORE DUE DATE

STATEMENT FOR THE PERIOD 01.04.2013 TO 31.03.2015

Branch................. Region.................. Zone.................

(Amount in Rupee)

Total Short Term

Production Credit

upto 3 lacs

Total Short Term

Production credit

which were

repaid in time

Amount of

incentive

@3%claimed

No. of

Accts

Amount

(Rs.)

No. of

Accts

Amount

(Rs.)

Loans upto

Rs.50,000/-

Loans above Rs.

50,000/- and upto

Rs. 3 lacs

TOTAL

# We certify that the above loans for which the claim is being made were repaid in time and the benefit of additional three percent incentive subvention has already been passed on to the account holders, thereby bring down the interest rate for such farmers to 4% p.a. for short term production credit upto Rs 3 lacs for these farmers.

· Incentive : Rupees……………………………………………

Balance outstanding G/L (Cloret Code 2994 – Finacle Code26501079)

Rs. ……………………………

Chartered accountant Branch /Regional/ Zonal Head

Date:

Place:

Certificate No.- 14(a)

Bank Of Baroda

Branch__________________ Region __________ Zone______________

UTILIZATION CERTIFICATE UNDER THE SCHEME OF ONE PERCENT INTEREST

SUBVENTION ON HOUSING LOANS UPTO RUPEES FIFTEEN LAKHS (as per Revised

Eligibility criteria), OF MINISTRY OF FINANCE, DEPARTMENT OF FINANCIAL SERVICES,

GOVERNMENT OF INDIA.

Certified that out of the sum of Rs.………………………………………… released towards the

interest subsidy under the scheme of one percent Interest Subvention on Housing Loans upto

Rs.15 Lakhs (as per revised eligibility criteria for Housing Loans sanctioned from 01.04.2011),

of Ministry of Finance, Department of Financial Service, Government of India, in favour of Bank

of Baroda, a sum of Rs.…………………………………. has been utilized for the purpose for

which it was sanctioned.

It is further certified that:

1. The loans were disbursed as per the guidelines for the scheme of one percent Interest

Subvention for Housing Loans, of Ministry of Finance, Government of India; and

2. Appropriate end use of the loan has been ensured / is being ensured through the actual

site visits.

Chartered Accountant Authorised Signatory

Date:

Place:

Certificate No.- 14 (b)

Bank Of Baroda


UTILIZATION CERTIFICATE UNDER THE SCHEME OF ONE PERCENT INTEREST

SUBVENTION ON HOUSING LOANS UPTO RUPEES TEN LAKHS (as per Earlier Eligibility

criteria), OF MINISTRY OF FINANCE, DEPARTMENT OF FINANCIAL SERVICES,

GOVERNMENT OF INDIA.

Certified that out of the sum of Rs.………………………………………… released towards the

interest subsidy under the scheme of one percent Interest Subvention on Housing Loans upto

Rs.10 Lakhs (as per earlier eligibility criteria for Housing Loans sanctioned from 01.10.2009 to

31.03.2011), of Ministry of Finance, Department of Financial Service, Government of India, in

favour of Bank of Baroda, a sum of Rs.…………………………………. has been utilized for

the purpose for which it was sanctioned.

It is further certified that:

1. The loans were disbursed as per the guidelines for the scheme of one percent Interest

Subvention for Housing Loans, of Ministry of Finance, Government of India; and

2. Appropriate end use of the loan has been ensured / is being ensured through the actual

site visits.


Date:

Place:

CERTIFICATE – 15 (a)

Bank Of Baroda


CENTRAL SECTOR INTEREST SUBSIDY SCHEME ON EDUCATIONAL LOANS TO STUDENTS

BELONGING TO ECONOMICALLY WEAKER SECTIONS (EWS)

Statement on Interest subsidy claimed during the period ending March, 2015.

(Financial year from April 1, 2014 to March 31, 2015)

(A/cs & Amt Rs. in Actuals)

Particulars

Interest Subsidy Claims

No. of Accounts Amount

General Category

Scheduled Caste Category

Scheduled Tribe Category

Total

We certify that the amounts stated above is strictly as per terms of the Scheme and the courses covered

under CSIS Scheme are as per IBA’s Model Education Loan Scheme issued from IBA time to time. We also

certify that the above claims as true and correct and declare that the same is as per the records of the books

of the Bank.


Date:

Place:

CERTIFICATE – 15 (b)

Bank Of Baroda


NEW CSIS SCHEME - RELIEF ON INTEREST FOR EDUCATION LOANS SANCTIONED/AVAILED UPTO

31.03.2009 AND OUTSTANDING AS ON 31.12.2013

Statement on Interest relief claimed during the period ending March, 2015.

(Financial year from April 1, 2014 to March 31, 2015)

(A/cs & Amt Rs. in Actuals)

Particulars Claims

No. of Accounts Amount

General Category

Scheduled Caste Category

Scheduled Tribe Category

Total

We certify that the amounts stated above is strictly as per terms of the Scheme and the courses covered

under CSIS Scheme are as per IBA’s Model Education Loan Scheme issued from IBA time to time. We also

certify that the above claims as true and correct and declare that the same is as per the records of the books

of the Bank.


Date:

Place:

Ce

rtif

ica

te 1

8

Bank o

f B

aro

da

Bra

nc

hR

eg

ion

Zo

ne

No

of

Ac

sA

mo

un

t N

o o

f A

cs

Am

ou

nt

No

of

Ac

sA

mo

un

t

Cla

im f

or

Inte

rest

Su

bve

nti

on

fo

r le

nd

ing

to

Wo

me

n S

HG

s a

t 7

% p

er

an

nu

m,

for

the

cre

dit

up

to R

s 3

La

kh

s ,

fo

r th

e y

ea

r 2

01

4-1

5

Pla

ce

:

Bra

nc

h /R

eg

ion

al / Z

on

al h

ea

d

We

he

reb

y c

ert

ify h

avin

g a

bo

ve

loa

ns a

s d

isb

urs

ed

/ o

uts

tan

din

g a

t 7

% p

.a., u

pto

th

e li

mit

of R

s. 3

lakh

s to

th

e

wo

me

n S

HG

s in

th

e y

ea

r 2

01

4-1

5.

Fo

r e

lig

ible

WS

HG

s d

uri

ng

th

e p

eri

od

01

.04

.20

14

to

31

.03

.20

15

(Am

ou

nt

in R

s)

Da

te :

Am

ou

nt

of

Inte

res

t

Su

bv

en

tio

n

Am

ou

nt

Sta

tem

en

t fo

r th

e y

ea

rly

cla

ims

: L

oa

ns

dis

bu

rse

d/o

uts

tan

din

g u

pto

Rs

. 3

la

kh

s

Ne

w a

cc

ou

nts

op

en

ed

du

rin

g

the

Ye

ar

Ou

tsta

nd

ing

as

at

Pre

vio

us

Ye

ar

To

tal o

uts

tan

din

g a

s a

t C

urr

en

t

Ye

ar

Ch

are

tre

d A

cc

ou

nta

nt

Cert

ific

ate

19

Bank o

f B

aro

da

Bra

nc

hR

eg

ion

Zo

ne

No

of

Ac

sA

mo

un

t N

o o

f A

cs

Am

ou

nt

No

of

Ac

sA

mo

un

t N

o o

f

Ac

sA

mo

un

t

We

ce

rtify t

ha

t th

e a

bo

ve

lo

an

s w

ere

re

pa

id o

n t

ime

an

d t

he

be

ne

fit

of

ad

ditio

na

l 3

% in

tere

st

su

bve

ntio

n h

as b

ee

n p

asse

do

n t

o t

he

S

HG

's a

cco

un

t,

red

ucin

g t

he

eff

ective

ra

te o

f in

tere

st

to 4

%

for

the

pro

mp

t r

ep

aye

e W

SH

Gs.

Date

:

Fo

r e

lig

ible

WS

HG

ac

co

un

ts f

rom

01

.04

.20

14

to

31

.03

.20

15

Bra

nc

h/R

eg

ion

al

/ Z

on

al

he

ad

New

ac

co

un

ts o

pe

ne

d

du

rin

g t

he

Ye

ar

Ou

tsta

nd

ing

as

at

pre

vio

us

Ye

ar

To

tal

ou

tsta

nd

ing

as

at

cu

rre

nt

Ye

ar

Sta

tem

en

t fo

r th

e Y

ea

rly c

laim

s:

Lo

an

s d

isb

urs

ed

/ou

tsta

nd

ing

up

to R

s.

3 l

ak

hs

(Am

ou

nt

in R

s)

Am

ou

nt

of

inte

res

t

Am

ou

nt

Cla

im f

or

Ad

dit

ion

al In

tere

st

Su

bv

en

tio

n @

3%

on

th

e p

rom

pt

rep

ay

me

nt,

fo

r th

e c

red

it u

pto

Rs

3 L

ak

hs

, f

or

the

ye

ar

20

14

-15

Reg

ula

r /

Eli

gib

le

Ac

co

un

ts

Ch

are

tre

d A

cc

ou

nta

nt

Pla

ce

:

Certificate no.20

Bank of Baroda

Branch_______ Region_________ Zone________

Utilization certificate under the credit linked Capital Subsidy Scheme

(CLCSS) for the year 2014-15

Sr

.no.

Name of Unit Subsidy

received

Subsidy TDR Amount

(Rs.)

No Date

We hereby certify that the Capital Subsidy under the Credit Linked Capital Subsidy

Scheme (CLCSS) received in respect of above units during the year 2014-15 is kept in

the form of TDR for the period of three years as per the CLCSS guidelines of Ministry of

MSME.

Chartered Accountant Branch / Regional/ Zonal Head

Place:

Date:

Ce

rtif

ica

te 2

1--

----

Pa

ge

1

Ba

nk

of

Ba

rod

a

Ce

rtif

ica

te u

nd

er

CG

TM

SE

Ce

rtif

ica

te o

f re

mit

tan

ce o

f re

cov

eri

es

ma

de

un

de

r C

GT

MS

E C

laim

se

ttle

d a

cco

un

ts a

s a

t 3

1st

Ma

rch

20

15

.

Re

gio

n

Bra

n

ch

S.N

o

Na

me

of

the

Cla

im

sett

led

acc

ou

nt

Op

en

ing

Ba

lan

ce a

s

at

31

.03

.20

14

De

tail

s o

f C

laim

s

Re

ceiv

ed

du

rin

g t

he

20

14

-15

De

tail

s o

f R

eco

ve

rie

s

in t

he

Cla

im r

ece

ive

d

acc

ou

nts

du

rin

g 2

01

4-

15

De

tail

s o

f a

dju

stm

en

t

tow

ard

s co

sts

incu

rre

d f

or

reco

ve

ry

Am

ou

nt

Rs.

(1)

Da

te

(DD

/MM

/Ye

ar)

Am

ou

nt

Rs.

(2

)

Da

te

(DD

/M

M/Y

ea

r

)

Am

ou

nt

Rs.

(3

)

Da

te

(DD

/M

M/Y

ea

r)

Am

ou

nt

Rs.

(4)

De

tail

s o

f

Pu

rpo

se

Co

ntd

.Pa

ge

2

Gu

ide

lin

es:

1.

Th

e a

mo

un

t to

be

re

po

rte

d i

s e

xa

ctly

up

to R

up

ee

. E

ve

n i

f th

e r

etu

rn i

s N

IL ,

it

ne

ed

to

be

ce

rtif

ied

.

2.

Op

en

ing

an

d c

losi

ng

ba

lan

ce s

ho

uld

ta

lly

wit

h G

L co

de

47

94

an

d d

iffe

ren

ce ,

if

an

y,

sho

uld

be

su

pp

ort

ed

by

MO

C.

3.

In a

ny

of

the

acc

ou

nt

CG

TM

SE

cla

im i

s se

ttle

d d

uri

ng

th

e y

ea

r a

nd

re

cov

eri

es

als

o w

ere

ma

de

du

rin

g t

he

ye

ar

an

d c

on

seq

ue

nt

refu

nd

s o

f cl

aim

s w

as

als

o m

ad

e d

uri

ng

th

e y

ea

r

an

d t

hu

s re

sult

ing

in

clo

sin

g b

ala

nce

as

Ze

ro ,

su

ch a

cco

un

ts a

lso

ne

ed

to

be

re

po

rte

d i

n t

he

re

turn

.

Ce

rtif

ica

te 2

1--

----

Pa

ge

2

Ba

nk

of

Ba

rod

a

Ce

rtif

ica

te u

nd

er

CG

TM

SE

Ce

rtif

ica

te o

f re

mit

tan

ce o

f re

cov

eri

es

ma

de

un

de

r C

GT

MS

E C

laim

se

ttle

d a

cco

un

ts a

s a

t 3

1st

Ma

rch

20

15

.

Re

gio

n

Bra

nch

S

.No

N

am

e o

f th

e C

laim

se

ttle

d

acc

ou

nt

De

tail

s o

f re

cov

eri

es

rem

itte

d t

o C

GT

MS

E d

uri

ng

20

14

-15

C

losi

ng

Ba

lan

ce

as

at

31

.3.2

01

5

Ob

serv

ati

on

s o

f S

CA

, if

an

y.

Da

te

(DD

/MM

/Ye

ar)

Mo

de

by

wa

y o

f

DD

/RT

GS

/NE

FT

etc

.,

Am

ou

nt

Rs.

(5)

Am

ou

nt

Rs.

(6)

We

he

reb

y c

ert

ify

th

at

the

ab

ov

e i

s th

e l

ist

of

CG

TM

SE

Cla

im s

ett

led

acc

ou

nts

an

d l

ist

of

acc

ou

nts

wh

ere

th

e r

eco

ve

rie

s a

re e

ffe

cte

d i

n t

he

CG

TM

SE

Cla

im s

ett

led

acc

ou

nts

an

d d

eta

ils

of

rem

itta

nce

s m

ad

e t

o C

GT

MS

E a

ga

inst

su

ch r

eco

ve

rie

s.

We

he

reb

y c

ert

ify

th

at

the

to

tal

ba

lan

ces

rep

ort

ed

ta

llie

s w

ith

GL

Co

de

47

94

Pla

ce

Da

te

C

ha

rte

red

Acc

ou

nta

nts

B

ran

ch M

an

ag

er

BCC_BR_107_127

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Transcript of BCC_BR_107_127