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yeQkeÀ Dee@]HeÀ Fbef[³ee BANK OF INDIA | Jeeef<e&keÀ efjHeesì& | Annual Report | 2005-2006

87

yeQkeÀ keÀe mecesefkeÀle efJeÊeer³e efJeJejCe

Consolidated Financial Statement


88

(000’s íesæ[s ieS nQ Omitted)

Devegmet®eer mebK³ee ³eLee As at ³eLee As atSchedule 31-03-2006 31-03-2005

No ©. (Rs.) ©. (Rs.)

I. Hetbpeer Deewj os³eleeSbHetbpeerDeejef#eefle³eeB Deewj DeefOeµes<eDeuHemebK³ekeÀ efnlepeceejeefMe³eeBGOeej

] Dev³e os³eleeSb leLee ÒeeJeOeevepeesæ[

II. Deeefmle³eeBYeejleer³e efj]peJe& yeQkeÀ ceWvekeÀoer Deewj µes<eyeQkeÀes ceW µes<e Deewj ceebie HejleLee DeuHe met®evee Hej HeéH³e OeveefveJesµeDeefiećeDe®eue Deeefmle³eeBDev³ee Deeefmle³eeBpeesæ[DeekeÀefmcele os³eleeSBJemetueer kesÀ ef}S efyeuecenÊJeHetCe& uesKeebkeÀve veerefle³eeBuesKeeW Hej efìHHeefCe³eeB

mecesefkeÀle legueve He$e 31cee®e&, 2006 keÀer efmLeleer kesÀ DevegmeejCONSOLIDATED BALANCE SHEET AS AT 31st MARCH, 2006

THej yeleeF& ieF& Devegmetef®e³eeB legueve-He$e keÀe DeefYevve Debie nQ ~The Schedules referred to above form an integral part of the Balance Sheet.

yeQkeÀkeÀejer efJeefve³eceve DeefOeefve³ece 1949 keÀer leermejer Devegmet®eer kesÀ HeÀece& `S' kesÀ Devegmeej legueve-He$e lew³eej efkeÀ³ee ie³ee nw ~The Balance Sheet has been prepared in conformity with Form ‘A’ of the Third Schedule to the Banking Regulation Act, 1949.

Sce. yeeue®ebêveDeO³e#e SJeb HeýebOe efveosµekeÀM. Balachandran

Chairman & Managing Director

kesÀ. Deej. keÀecelekeÀe³e&HeeuekeÀ efveosMekeÀK. R. KamathExecutive Director

[er. peer. HeìJeOe&veceneÒeyebOekeÀ

D. G. PatwardhanGeneral Manager

DeefceleeYe Jecee&Amitabh Verma

oerHekeÀ Heer. HeeìerueDeepak P. Patil

[e@. Jeer. yeer. keÀewpeeueieerDr. V. B. Kaujalgi

le©Ce µesþTarun Sheth

efveosµekeÀDIRECTORS

S. kesÀ. KeeQ[A. K. Khound

[e@. HeÝee. leeefJe³ee[Dr. Prabha Taviad

Sce. Sve. ieesHeerveeLeM. N. Gopinath

Jeer. F&µJejveV. Eswaran

[e@. Meebleeyesve ®eeJe[eDr. Shantaben Chavda

[e@. Heer. keÀesì³³eeDr. P. Kotaiah

meveoer uesKeekeÀj / Chartered Accountants Fme leejerKe keÀer nceejer mebueive efjHeesì& kesÀ Devegmeej In terms of our report of even date attached

Sce. Heer. ef®eleues SC[ kebÀHeveer yeer. Deej. ceenséejer SC[ kebÀHeveer þekegÀj, JewÐeveeLe De³³ej SC[ kebÀHeveer yeńdce³³ee Sb[ kebÀ. kesÀ. Sve. iegìiegefì³ee Sb[ kebÀ. efce$ee, kegbÀ[t SC[ yemegM.P. Chitale & Co. B. R. Maheswari & Co. Thakur, Vaidyanath Aiyar & Co.Brahmayya & Co.K. N. Gutgutia & Co. Mitra Kundu & Basu

cegbyeF&, 30 ceF&, 2006Mumbai, 30th May, 2006

I. CAPITAL AND LIABILITIESCapital 1 4881419 4881419Reserves & Surplus 2 46424880 41004398Minorities Interest 2A 29941 19543Deposits 3 939277145 788188785Borrowings 4 58939102 59619537Other liabilities and provisions 5 74661666 57307674TOTAL 1124214153 951021356

ASSETSCash and balances withReserve Bank of India 6 55884159 39047232Balances with Banks andmoney at call andshort notice 7 58576006 36216173Investments 8 319253795 288079981Advances 9 651737444 555288868Fixed Assets 10 8100703 8143429Other Assets 11 30662046 24245673TOTAL 1124214153 951021356

Contingent Liabilities 12 828104962 797725188Bills for collection 61540547 52723267Significant accounting policies 18Notes forming part of accounts 19


89


Devegmet®eer mebK³ee Je<ee¥le Year ended Je<ee¥le Year endedSchedule 31-03-2006 31-03-2005

No ©. (Rs.) ©. (Rs.)

I. Dee³eDeefpe&leDev³e Dee³e

peesæ[II. J³e³e

J³eJe efkeÀ³ee ie³ee y³eepeHe´®eeueveiele J³e³eHeéJeOeeve Deewj DeekeÀefmcekeÀleeSbpeesæ[men³eesieer mebmLeeDeeW ceW Depe&ve/(neefve) keÀe efnmmeeDeuHemebK³ekeÀ kesÀ efnle keÀer keÀìewleer keÀjves kesÀHetJe& Je<e& kesÀ efueS mecesefkeÀle Meg× ueeYe/(neefve)IeìeSb ë DeuHemebK³ekeÀ keÀe efnleJe<e& kesÀ efueS mecetn kesÀ mebyebefOele mecesefkeÀleMeg× ueeYe (neefve)peesæ[s ë mecetn kesÀ mebyebefOele Deûesveerle

mecesefkeÀle ueeYe/(neefve)peesæ[

III. efJeefve³eesiekeÀevetveer Deejef#eefle³eeW keÀes DeblejCeefveJesµe Ieì yeæ{ Deejef#ele mes DeblejCejepemJe Deejef#eefle keÀes DeblejCeHetbpeer Deejef#eefle keÀes DeblejCeDebleefjce ueeYeebµe (ueeYeebµe keÀj meefnle)He´mleeefJele Debeflece ueeYeebµe (ueeYeebµe keÀj meefnle)Dee³ekeÀj DeefOeefve³ece, 1961 keÀer Oeeje 36(1)(viii) kesÀ Debleie&le efJeµes<e Deejef#eeflepeesæ[cenÊJeHetCe& uesKeebkeÀve veerefle³eeB uesKeeWHej efìHHeefCe³eeB Heéfle µes³ej GHeepe&ve (©.)

31 cee®e&, 2006 keÀes meceeHle Je<e& keÀe mecesefkeÀle ueeYe Je neefve uesKeeCONSOLIDATED PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 31st MARCH, 2006

THej yeleeF& ieF& Devegmetef®e³eeB ueeYe SJeb neefve Keeles keÀe DeefYevve Debie nQ ~The Schedules referred to above form an integral part of the Profit & Loss Account

yeQkeÀkeÀejer efJeefve³eceve DeefOeefve³ece 1949 keÀer leermejer Devegmet®eer kesÀ HeÀece& `S' kesÀ Devegmeej ueeYe SJeb neefve Keelee lew³eej efkeÀ³ee ie³ee nw ~The Profil & Loss Account has been prepared in conformity with Form ‘B’ of the Third Schedule to the Banking Regulation Act, 1949.

I. INCOMEInterest earned 13 70286977 60315267Other income 14 11912645 11454553

TOTAL 82199622 71769820

II. EXPENDITUREInterest expended 15 43965944 37944863Operating expenses 16 21184665 19351870Provisions and Contingencies 10013237 11212901TOTAL 75163846 68509634

Share of earnings/(loss) in Associates 17 224884 (116002)Consolidated Net Profit/(Loss) for the yearbefore deducting Minorities’ interest 7260660 3144184Less: Minorities’ Interest 14319 7124Consolidated Net Profit/(Loss) for the yearattributable to the group 7246341 3137060Add: Brought forward consolidated

profit/(loss) attributable to the group3424805 1488919

TOTAL 10671146 4625979

III APPROPRIATIONSTransfer to Statutory Reserve 1800000 900000Transfer (from)/to Investment Fluctuation Reserve (3217591) (2200000)Transfer to Revenue Reserve 2897410 768402Transfer to Capital Reserve 199669 625218Interim Dividend ( including dividend tax ) 0 551096Proposed Final Dividend ( including dividend tax) 1667274 555757Dividend tax - for subsidiary 1683 701Special Reserve u/s Sec 36(1)(viii) of Income Tax Act . 1961 450000 0Balance carried over to consolidated Balance sheet 6872701 3424805

TOTAL 10671146 4625979

Significant accounting policies 18Notes forming part of accounts 19Earnings Per Share (Rs.) 14.87 6.44

Sce. yeeue®ebêveDeO³e#e SJeb HeýebOe efveosµekeÀM. Balachandran

Chairman & Managing DirectorkesÀ. Deej. keÀecelekeÀe³e&HeeuekeÀ efveosµekeÀK. R. KamathExecutive Director[er. peer. HeìJeOe&ve

ceneHeyebOekeÀD. G. Patwardhan

General Manager

DeefceleeYe Jecee&Amitabh VermaoerHekeÀ Heer. Heeìerue

Deepak P. Patil

[e@. Jeer. yeer. keÀewpeeueieerDr. V. B. Kaujalgi

le©Ce µesþTarun Sheth

efveosµekeÀDIRECTORS

S. kesÀ. KeeQ[A. K. Khound

[e@. HeÝee. leeefJe³ee[Dr. Prabha Taviad

Sce. Sve. ieesHeerveeLeM. N. Gopinath

Jeer. F&µJejveV. Eswaran

[e@. µeebleeyesve ®eeJe[eDr. Shantaben Chavda

[e@. Heer. keÀesì³³eeDr. P. Kotaiah

meveoer uesKeekeÀj / Chartered Accountants Fme leejerKe keÀer nceejer mebueive efjHeesì& kesÀ Devegmeej In terms of our report of even date attached

Sce. Heer. ef®eleues SC[ kebÀHeveer yeer. Deej. ceenséejer SC[ kebÀHeveer þekegÀj, JewÐeveeLe De³³ej SC[ kebÀHeveer yeńdce³³ee Sb[ kebÀ. kesÀ. Sve. iegìiegefì³ee Sb[ kebÀ. efce$ee, kegbÀ[t SC[ yemegM.P. Chitale & Co. B. R. Maheswari & Co. Thakur, Vaidyanath Aiyar & Co.Brahmayya & Co.K. N. Gutgutia & Co. Mitra Kundu & Basu

cegbyeF&, 30 ceF&, 2006Mumbai, 30th May, 2006


90


³eLee As at ³eLee As at31-03-2006 31-03-2005

©. (Rs.) ©. (Rs.)

Devegmet®eer - 1 ë HebtpeerHeéfOeke=ÀleHe´l³eskeÀ ©He³es 10 kesÀ 150,00,,000 F&efkeÌJeìerµes³ej peejer Deewj DeefYeoÊepeejer Deewj DeefYeoÊe48,85,80,000 F&efkeÌJeìer µes³ej (efJeiele Je<e&48,85,80,000) efpeveceW keWÀê mejkeÀej ÜejeOeeefjle ©. 10 kesÀ 33,85,80,000 (efJeiele Je<e&33,85,80,000) ©. 338.58 keÀjesæ[ kesÀ HetCe&HeóÊe F&efkeÌJeìer µes³ej (efJeiele Je<e& ©. 338.58

keÀjesæ[)kegÀue

HeóÊe Hetbpeer48,74,00,200 F&efkeÌJeìer µes³ej (efJeiele Je<e&48,73,99,600 He´l³eskeÀ ©. 10 kesÀ HetCe&leë HeóÊepeesæ[W ë peye µes³ejkegÀue

mecesefkeÀle legueve-He$e keÀer Devegmetef®e³eeBSCHEDULES TO THE CONSOLIDATED BALANCE SHEET

Devegmet®eer - 2 ë Deejef#eefle³eeb Deewj DeefOeµes<eI. meeb efJeefOekeÀ Deejef#ele

ÒeejbefYekeÀ Mes<eJe<e& kesÀ oewjeve HeefjJe×&vepeesæ[ (I)

II. Hetbpeer Deejef#e³eeBS) Hegvecet&u³eebkeÀve Deejef#eefle

ÒeejbefYekeÀ Mes<epeeææ[s/(IeìeSb)ëmecee³eespeve (veer®es efìHHeCeer osKes)IeìeSb ë Hegvecet&u³eebkeÀve kesÀ keÀejCeueeYe SJeb neefve Keeles ceW mecee³eesefpelecetu³eÛeme(S) keÀe peesæ[

yeer) Dev³ei) meceece sueve/e f J eue³eve Hej Dee fOeke Ì ³ e

ÒeejbefYekeÀ Mes<epeesæ[s IeìeSbëmecee³eespeveIeìeSBëjepemJe Deejef#ele keÀes DeblejCe

ii)efveJesMe keÀer efye¬eÀer Hej ueeYe-“HeefjHekeÌJelee kesÀ jKes ieS” ÒeejbefYekeÀ Mes<epeesæ[sëueeYe Je neefve Keeles me s DeblejCe

iii)efJeosµeer cegêe ªHeevlejCe Deejef#eefleHeéjbefYekeÀ µes<e

peesæ[sëDev³e os³eleeDeeW SJeb HeéJeOeeveeW mesDevlejCe uesKeebkeÀve ceevekeÀ kesÀ 11 Devegmeejpee s æ[ W/(IeìeS b)-Je<e & ke s À oe wjevemecee³eespeve (efveJeue)

kegÀue (yeer)peesæ[ (II)

III. µes³ej Heerefce³eceHeéjbefYekeÀ µes<epeesæ[s ë peyle µes³ejeW keÀe efJeueesHevepeesæ[ (III)

SCHEDULE - 2 : RESERVES & SURPLUSI. Statutory Reserve :

Opening Balance 15451686 14551686Additions during the year 1800000 900000TOTAL ( I ) 17251686 15451686

II. Capital Reserves :A) Revaluation Reserve :

Opening Balance 1656126 1743240Add / (Less): Adjustments (Refer note below) 354 198Less: Depreciation on account of revaluation adjusted to Profit and Loss Account 82946 87312

Total of (A) 1573534 1656126B) Others

i) Surplus on Amalgamation/ MergerOpening Balance 0 201275Add / (Less): Adjustments 0 0Less: Transfer to Revenue Reserve 0 201275

0 0ii) Profit on sale of Investments - “Held to Maturity”

Opening Balance 1316951 691733Add: Transfer from Profit and Loss account 199669 625218

1516620 1316951iii) Foreign Currency Translation Reserve

Opening Balance 2571143 0Add: Transfer from other Liabilities & Provisions 0 2856575as per Accounting Standard 11Add/ (Less) : Adjustments during the year (Net) (78309) (285432)

2492834 2571143Total of (B) 4009454 3888094TOTAL (II) 5582988 5544220

III. Share Premium :Opening Balance 5235367 5235362Add: On forfeited shares annulled 2 5TOTAL (III) 5235369 5235367

SCHEDULE - 1 : CAPITAL

AUTHORISED150,00,00,000 Equity Shares of Rs.10 each 15000000 15000000

ISSUED AND SUBSCRIBED

48,85,80,000 Equity Shares(Previous year 48,85,80,000) of Rs.10 eachincluding 33,85,80,000 Equity Shares(Previous year 33,85,80,000) of Rs. 10 eachfully paid up amounting to Rs. 338.58 crores(Previous year Rs. 338.58 crores )held by Central Government. 4885800 4885800

TOTAL 4885800 4885800

PAID-UP CAPITAL48,74,00,200 Equity Shares (Previous year 48,73,99,600 ) of Rs.10 4874002 4873996each fully Paid-up.Add: Shares forfeited ( Refer note no.2 of Schedule 19 ) 7417 7423

TOTAL 4881419 4881419


91



©. (Rs.) ©. (Rs.)

Devegmet®eer - 2 ë Deejef#eefle³eeb Deewj DeefOeµes<e (peejer)

IV. jepemJe Deewj Dev³e Deejef#eefle³eeB

i) jepemJe Deejef#eefle³eeB

HeéjbefYekeÀ µes<e

peesæ[W ë HegvejebefkeÀle ueeYeebµe kesÀ efueS DeefleefjkeÌle

He ´ eJeOeeve

peesæ[WëefJeue³e Hej Hetbpeer Deejef#ele DeeefOekeÌ³e mes DeblejCe

pees æ[W/(IeìeSb)ë mecee³eespeve (veer®es efìHHeCeer osKeW)

peesæ[W ë Je<e& kesÀ oewjeve HeefjJeOe&ve

peesæ[W ë DeekeÀefmcekeÀ Deejef#eefle mes DeblejCe

GHe peesæ[ IV(i)

ii) efveJesµe Ieì-yeæ{ Deejef#eefle

HeéjbefYekeÀ µes<e

IeìeSB ë ueeYe SJeb neefve efJeefve³eesie keÀes DeblejCe

(Devegmet®eer 19 keÀer efìHHeCeer 3 osKeW)

GHe peesæ[ IV(ii)

iii) DeekeÀefmcekeÀ Deejef#eleHeéjbefYekeÀ µes<eIeìeSB ë jepemJe SJeb Dev³e Deejef#eefle³eeb

yeerDeesDeeF& c³et®egDeue Hueme ³eespevee ceW keÀceer kesÀ keÀejCe mecee³eespeve

GHe peesæ[ IV(iii)

iv) Dee³ekeÀj DeefOeefve³ece, 1961 keÀer Oeeje 36(1)

(viii) kesÀ Debleie&le efJeMes<e Deeejef#eefle

peesæ[ ë IV

V. ueeYe-neefve Keeles ceW µes<e

peesæ[ (I mes V)

mecesefkeÀle leg}ve-He$e keÀer Devegmetef®e³eeBSCHEDULES TO THE CONSOLIDATED BALANCE SHEET

SCHEDULE - 2 : RESERVES & SURPLUS (contd.)

IV. Revenue and Other Reserves :

i) Revenue Reserve :

Opening Balance 8130729 7011664

Add: Excess provision

for dividend written back. 0 15799

Add: Transfer from Capital Reserve-Surplus on Merger 0 201275

Add / (Less): Adjustments (Refer note below) 3997 2242

Add: Additions during the year 2897410 768402

Add: Transfer from contingency Reserves 0 131347

Sub-total of IV(i) 11032136 8130729

ii) Investment Fluctuation Reserve :


Less:Transfer to Profit & Loss Appropriations

(Refer Note 3 of Schedule 19 ) 3217591 2200000

Sub-total of IV(ii) 0 3217591

iii) Contingency Reserve :


Less: Transfer to Revenue & other reserves 0 131347

Adjustment on account of shortfall in D2 Plus scheme

of BOI Mutual Fund 0 243653

Sub-total of IV(iii) 0 0

iv) Special Reserve u/s Sec 36(1)(viii) of Income Tax Act, 1961 450000 0

TOTAL (IV) 11482136 11348320

V. Balance in Consolidated Profit and Loss Account 6872701 3424805

TOTAL ( I TO V) 46424880 41004398

SCHEDULE - 2A : MINORITIES INTEREST

Minority interest at the date on which the parent-subsidiary

relationship came into existence 9800 9800

Subsequent increase /(decrease) 20141 9743

Minority interest on the date of Balance sheet 29941 19543

veesì ë mecee³eespeve efJeosMeer MeeKeeDeeW mes mebyebefOele DeeBkeÀæ[es kesÀ ³eLee efoveebkeÀ 31 cee®e& keÀes He´®eefuele efJeve³ece oj Hej HeefjJele&ve kesÀ keÀejCe efkeÀS ieS nw eNote : The adjustments are on account of conversion of figures relating to foreign branches at the rates of exchange prevailing as at 31st March.

Devegmet®eer - 2 ë Deejef#eefle³eeb Deewj DeefOeµes<e (peejer)

Gme leejerKe keÀes DeuHemebK³ekeÀ efnle peye cetue

kebÀHeveer-mene³ekeÀ kebÀHeveer mebyebOe DeefmlelJe ceW Dee³ee

HejJeleea Je=ef× / (Ieì)

legueve He$e keÀer leejerKe keÀes DeuHemebK³ekeÀ efnle


92


Devegmet®eer - 4 ë GOeej

I. Yeejle ceW GOeej

i) Yeejleer³e efj]peJe& yeQkeÀ

ii) Dev³e yeQkeÀ

iii) Dev³e mebmLeeSb Deewj DeefYekeÀjCe

peesæ[ (I)

I. Yeejle kesÀ yeenj mes GOeej

peesæ[ (I, II)

THej meefcceef}le HeéfleYetle GOeej


Devegmet®eer - 5 ë Dev³e os³eleeSb Deewj HeéJeOeeve

I. mebos³e efyeue

II. Deblej-keÀe³ee&ue³e mecee³eespeve - (µeg×)

III. HeésodYetle y³eepe

IV. Yeejle mejkeÀej mes HeéHle ieewCe $eÝCe

V. HeéfleYeteflejefnle iewj HeefjJele&veer³e cees®eveer³e yebOeHe$e

(efì³ej II Hetbpeer kesÀ efueS ieewCe $eÝCe)

VI. Dev³e

peesæ[

SCHEDULE - 5 : OTHER LIABILITIES AND PROVISIONS

I. Bills Payable 11457944 12447912

II. Inter-office adjustments (net) 2624149 2471482

III. Interest Accrued 4486111 2921925

IV. Subordinated Loan from Government of India 3482200 3482200

V. Unsecured Non-convertible Redeemable Bonds 29485000 19985000

(Subordinated for Tier-II Capital)

VI. Others 23126262 15999155

TOTAL 74661666 57307674


©. (Rs.) ©. (Rs.)

SCHEDULE - 4 : BORROWINGS

I. Borrowings in India :

i) Reserve Bank of India 0 0

ii) Other Banks 803070 11793753

iii) Other Institutions and Agencies 14661740 12491061

Total (I) 15464810 24284814

II. Borrowings outside India 43474292 35334723

Total ( I, II ) 58939102 59619537

Secured borrowings included in I above 0 8246610

SCHEDULE - 3 : DEPOSITS

A. I. Demand Deposits :

i) From Banks 3031854 2091781

ii) From Others 71017825 58886447

TOTAL (I) 74049679 60978228

II. Savings Bank Deposits 254861648 211318066

III. Term Deposits :

i) From Banks 28001891 33134970

ii) From Others 582363927 482757521

TOTAL (III) 610365818 515892491

TOTAL A(I, II, III) 939277145 788188785

B. i) Deposits of branches in India 778460450 657790671

ii) Deposits of branches outside India 160816695 130398114

TOTAL (B) 939277145 788188785

Devegmet®eer - 3 ë pecee jeefMe³eeB

S. I. ceebie peceei) yeQkeÀeW mes

ii) Dev³e mes

peesæ[ (I)

II. ye®ele yeQkeÀ peceeIII. ceer³eeoer pecee

i) yeQkeÀeW mes

ii) Dev³e mespeesæ[ (I, III)

peesæ[ S (I, II, III)

yeer. i) Yeejle ceW MeeKeeDeeW keÀer peceejeefMe³eeB

ii) Yeejle kesÀ yeenj MeeKeeDeeW keÀer peceejeefMe³eeB

peesæ[ yeer


93



©. (Rs.) ©. (Rs.)


Devegmet®eer - 8 ë efveJesµeI. Yeejle ceW efveJesµe

i) mejkeÀejer HeéfleYetefle³eeW ceWii) Dev³e Devegceesefole HeéfleYetefle³eeW ceWiii) µes³ejeW ceWiv) ef[yeW®ejes Deewj yebOeHe$eeW mesv) men³eesieer mebmLeeDees ceWvi) Dev³e (³etìerDeeF&/ceg®³egDeue HebÀ[ kesÀ ³etefveì

keÀceefMe&Deue HesHej Deeefo)peesæ[ (I)

II. Yeejle kesÀ yeenj efveJesµei) mejkeÀejer HeéfleYetefle³eeW ceW

(mLeeveer³e ÒeeefOekeÀjCeeW meefnle)ii) Dev³e efveJesMeeW ceWpeesæ[ (II)peesæ[ (I, II)

III. Yeejle ceW efveJesµei) efveJesMeeW keÀe mekeÀue cetu³eii) cetu³eÛeme kesÀ efueS kegÀue ÒeeJeOeeveiii) Meg× efveJesMe

IV. Yeejle kesÀ yeenj efveJesµei) efveJesMeeW keÀe mekeÀue cetu³eii) cetu³eÛeme kesÀ efueS kegÀue ÒeeJeOeeveiii) Meg× efveJesMe

SCHEDULE - 8 : INVESTMENTSI. Investments in India :

i) Government Securities 219290250 191485537ii) Other approved Securities 7522191 7695909iii) Shares 2479868 2300097iv) Debentures and Bonds 28785912 30947275v) Investment in Associates 3767849 3548367vi) Others (Units of UTI / Mutual Funds,

Commercial papers etc) 3105845 3288992TOTAL ( I ) 264951915 239266177

II. Investments outside India :i) Government Securities

(including local authorities) 11985437 11646476ii) Other Investments 42316443 37167328TOTAL ( II ) 54301880 48813804 TOTAL ( I, II) 319253795 288079981

III. Investments in India :i) Gross value of Investments 267758702 241206647ii) Aggregate provisions for depreciation 2806787 1940470iii) Net Investments 264951915 239266177

IV Investments outside India :i) Gross value of Investments 54457617 48922673ii) Aggregate provisions for depreciation 155737 108869iii) Net Investments 54301880 48813804

Devegmet®eer - 6 ë vekeÀoer Deewj Yeejleer³e efj]peJe& yeQkeÀ ceW µes<e

I. neLe ceW vekeÀoer(FmeceW efJeosµeer keÀjWmeer veesì Deewj mJeCe&meefcceefuele nQ~)

II. Yeejleer³e efj]peJe& yeQkeÀ ceW µes<ei) ®eeuet Keeles ceWii) Dev³e KeeleeW ceWpeesæ[ (II)peesæ[ (I, II)

SCHEDULE - 6 : CASH AND BALANCES WITH

RESERVE BANK OF INDIA

I. Cash in hand 2845303 2447455

(including foreign currency notes & Gold )

II. Balances with Reserve Bank of India :

i) In Current Account 53038856 36599777

ii) In Other Accounts 0 0

TOTAL (II) 53038856 36599777

TOTAL ( I, II) 55884159 39047232

SCHEDULE - 7 : BALANCES WITH BANKS & MONEY AT

CALL & SHORT NOTICE

I. In India :

i) Balances with Banksa) in Current Accounts 2283461 1707214b) in Other Deposit Accounts 9606794 17420537

ii) Money at call and short noticea) With Banks 16322950 2350000b) With Other Institutions 0 0TOTAL ( I ) 28213205 21477751

II. Outside India :i) In Current Accounts 1334904 1607887ii) In Other Deposit Accounts 26920896 12845407iii) Money at call and short notice 2107001 285128TOTAL ( II ) 30362801 14738422

TOTAL ( I, II ) 58576006 36216173

Devegmet®eer-7 ë yeQkeÀes ceW µes<e Deewj ceebie leLee DeuHe met®evee Hej HeéH³e Oeve

I. Yeejle ceWi) yeQkeÀ ces µes<e

keÀ) ®eeuet KeeleeW ceWKe) Dev³e pecee KeeleeW ceW

ii) ceebie Hej Deewj DeuHe met®evee Hej HeéHle OevekeÀ) yeQkeÀeW kesÀ meeLeKe) Dev³e mebmLeeDeeW ceW

peesæ[ (I)

II. Yeejle kesÀ yeenji) ®eeuet KeeleeW ceWii) Dev³e pecee KeeleeW ceWiii) ceebie Hej Deewj DeuHe met®evee Hej HeéHle Oevepeesæ[ (II)peesæ[ (I, II)


94



©. (Rs.) ©. (Rs.)

Devegmet®eer - 9 ë Deefieće

S. i) ke´À³e efkeÀ³es ie³es Deewj yeÆeke=Àle efyeue

ii) vekeÀo GOeej, DeesJej[eHeÌì Deewj ceebie HejHeéflemebos³e $eÝCe

iii) ceer³eeoer $eÝCe

peesæ[ (S)

yeer. DeefieceeW keÀe efJeJejCe

i) cetle& Deeefmle³eeW Üeje HeéfleYetle(FmeceW yener $eÝCeeW Hej Deefiece µeeefceue nQ)

ii) yeQkeÀ/mejkeÀejer He´l³eeYetefle³eeW Üeje megjef#ele

iii) DeHeéfleYetle

peesæ[ (yeer)

meer. DeefieceeW keÀe #es$eJeej JeieeakeÀjCe

I. Yeejle ceW Deefieće

i) HeéLeefcekeÀlee HeéHle #es$e

ii) meeJe&peefvekeÀ #es$e

iii) yeQkeÀ

iv) Dev³e

peesæ[ (meer-I)

II. Yeejle kesÀ yeenj Deefieće

i) yeQkeÀeW Üeje os³e

ii) Dev³e Üeje os³e

keÀ) ke´À³e efkeÀS ieS Deewj yeÆeke=Àle efyeue

Ke) meecetefnkeÀ $eÝCe

ie) Dev³e

peesæ[ (meer-II)

peesæ[ (meer-I, meer-II)


SCHEDULE - 9 : ADVANCES

A. i) Bills Purchased and Discounted 81237954 68659756

ii) Cash Credits, Overdrafts and

Loans repayable on demand 324511074 274724205

iii) Term Loans 245988416 211904907

TOTAL (A) 651737444 555288868

B. Particulars of Advances :

i) Secured by tangible assets 437870865 359238642

(includes advances against Book Debts)

ii) Covered by Bank/Government Guarantees 99585059 90529263

iii) Unsecured 114281520 105520963

TOTAL (B) 651737444 555288868

C. Sectoral Classification of Advances :

I. Advances in India

i) Priority Sector 205312105 158760458

ii) Public Sector 72170866 76072601

iii) Banks 202599 195949

iv) Others 250226754 189984129

TOTAL (C-I) 527912324 425013137

II. Advances outside India :

i) Due from Banks 28675178 22499734

ii) Due from others

a) Bills Purchased and Discounted 31539383 29095643

b) Syndicated Loans 12208513 16865124

c) Others 51402046 61815230

TOTAL (C-II) 123825120 130275731

TOTAL ( C - I, C - II ) 651737444 555288868


95



©. (Rs.) ©. (Rs.)

Devegmet®eer - 10 ë De®eue Deeefmle³eebI. Heefjmej

DeLeµes<eJe<e& kesÀ oewjeve HeefjJe×&ve / mecee³eespeveIeìeSb - Je<e& kesÀ oewjeve keÀìewefle³eeB mecee³eespeveGHe-peesæ[Fme leejerKe keÀes Hegvecet&u³eve HeefjJeOe&ve kesÀ keÀejCeHegvecet&u³eve Deejef#ele ceW pecee

IeìeSb ë Fme leejerKe keÀes cetu³eÛeme (Hegvecet&u³eve kesÀkeÀejCe ©.1499331 meefnle iele Je<e& ceW ©.1416384)peesæ[ (I)

II. Dev³e De®eue Deeefmle³eeB(FmeceW HeÀveea®ej Deewj efHeÀkeÌme®ej meefcceefuele nQ)DeLeµes<e ueeiele HejJe<e& kesÀ oewjeve HeefjJe×&ve/mecee³eespeveIeìeSB Je<e& kesÀ oewjeve keÀìewefle³eeB /mece³eespeve

GHe-peeææs[IeìeSBë Fme leejerKe keÀes cetu³eÛemepeesæ[ (II)

III.efvecee&CeeOeerve Hetbpeeriele keÀe³e&

peesæ[ (I, II, III)


SCHEDULE - 10 : FIXED ASSETS

I. PREMISES :

Opening Balance at cost 4742040 4547207

Additions /Adjustments during the year 398267 194833

Less: Deductions/ Adjustments during the year 1631 0

Sub-total 5138676 4742040

Addition to date on account of revaluation credited

to revaluation reserve 3072865 3072511

Less : Depreciation to date (including Rs.1499331 on account

of revaluation - Previous year Rs.1416384) 2609826 2382597

TOTAL ( I ) 5601715 5431954

II. OTHER FIXED ASSETS :

(including Furniture and Fixtures)Opening Balance at cost 7955072 6998158

Additions /Adjustments during the year 757434 1113100

Less: Deductions/ Adjustments during the year 164688 156186

Sub-total 8547818 7955072

Less: Depreciation to date 6155590 5469504

TOTAL ( II ) 2392228 2485568

III. CAPITAL WORK IN PROGRESS 106760 225907

TOTAL ( I, II, III ) 8100703 8143429

Devegmet®eer - 11 ë Dev³e Deeefmle³eebI. HeésodYetle y³eepe

II. Deefiece ©He mes ÒeoÊe keÀj/m$eesle Hej keÀeìe ie³ee keÀj

III. uesKeve meeceieér Deewj mìecHe

IV. DeemLeefiele keÀj Deeefmle³eeBb

V. Dev³e

peesæ[

SCHEDULE - 11 : OTHER ASSETS

I. Interest Accrued 6827995 6174682

II. Tax paid in advance/tax deducted at source 16298626 11851574

III. Stationery and Stamps 18606 18027

IV. Deferred Tax Assets 246573 351839

V. Others 7270246 5849551

TOTAL 30662046 24245673

Devegmet®eer - 12 ë DeekeÀefmcekeÀ os³eleeSBI. yeQkeÀ kesÀ efJe©Oo oeJes efpevnW $eÝCe kesÀ ©He ceW

mJeerkeÀej veneR efkeÀ³ee ie³ee nw

II. Debµeleë HeóÊe efveJesµeeW kesÀ efueS os³eleeSb

III. yekeÀe³ee Jee³eoe efJeefvece³e mebefJeoeDeeW kesÀkeÀejCe os³eleeSb

IV. mebIeìkeÀeW keÀer Deesj mes oer ieF& ieejbefì³eeB

keÀ) Yeejle ceW

Ke) Yeejle kesÀ yeenj

V. mekeÀej, He=<þebkeÀve Deewj Dev³e oeef³elJe

VI. y³eepe oj keÀer Deouee-yeoueer

VII. Dev³e ceoW efpevekesÀ efueS yeQkeÀ DeekeÀefmcekeÀ ©Heces osveoej nw

peesæ[

SCHEDULE - 12 : CONTINGENT LIABILITIES

I. Claims against the Bank not

acknowledged as debts 3986313 2650058

II. Liability for partly paid Investments 3200 3200

III. Liability on account of outstanding forward exchange 528782205 512848313contracts

IV. Guarantees given on behalf of Constituents :

a) In India 54838551 39205097

b) Outside India 20408307 19037267

V. Acceptances, endorsements and other obligations 59326866 58699693

VI. Interest Rate Swaps 160333701 164734825

VII. Other items for which the Bankis contingently liable 425819 546735

TOTAL 828104962 797725188


96


Je<ee¥le For the Je<ee¥le For theYear Ended Year Ended

31-03-2006 31-03-2005

©. (Rs.) ©. (Rs.)

Devegmet®eer - 13 ë Deefpe&le y³eepe

I. DeefiećeeW/efJeefvece³e He$eeW Hej y³eepe/yeÆe

II. efveJesµeeW Hej Dev³e

III. Yeejleer³e efj]peJe& yeQkeÀ kesÀ µes<eeW Deewj

Dev³e Devlej-yeQkeÀ efveefOe³eeW Hej y³eepe

IV. Dev³e

peesæ[

mecesefkeÀle legueve He$e keÀer Devegmetef®e³eeBSCHEDULES TO THE CONSOLIDATED BALANCE SHEET

SCHEDULE - 13 : INTEREST AND DIVIDENDS EARNED

I. Interest/Discount on advances/bills 45729759 36158510

II. Income on Investments 21612899 21271869

III. Interest on balances with Reserve Bank of India and

other inter-bank funds 1862860 2308948

IV. Others 1081459 575940

TOTAL 70286977 60315267

Devegmet®eer - 14 ë Dev³e Dee³eI. keÀceerµeve, efJeefvece³e Deewj oueeueerII. efveJesµeeW kesÀ efJeke´À³e Hej ueeYe-µeg×III. Yetefce, YeJeveeW Deewj Dev³e Deeefmle³eeW

kesÀ efJeke´À³e Hej ueeYe-µeg×IV. efJeefvece³e mebJ³eJenejeW Hej ueeYe-µeg×V. efJeefJeOe Dee³e

peesæ[

SCHEDULE - 14 : OTHER INCOME

I. Commission, exchange and brokerage 5189914 4500002

II. Profit on sale of Investments - net 1140936 1802288

III. Profit on sale of land, buildings and

other assets - net 2737 2371

IV. Profit on exchange transactions - net 1823140 2234018

V. Miscellaneous Income 3755918 2915874

TOTAL 11912645 11454553

Devegmet®eer - 15 ë J³e³e efkeÀ³ee ie³ee y³eepeI. peceejeefµe³eeW Hej y³eepeII. Yeejleer³e efj]peJe& yeQkeÀ/Deblej yeQkeÀ GOeejeW Hej y³eepeIII. Dev³e (efpemeceW HeefjMeesOeve J³e³e © 2436604

(efJeiele Je<e& © 1498196 Meefceue nw)peesæ[

SCHEDULE - 15 : INTEREST EXPENDED

I. Interest on Deposits 34981143 31366268

II. Interest on Reserve Bank of India / inter-bank borrowings 3619369 3036793

III. Others [ includes amortisation expenses of Rs.2436604

(previous year Rs.1498196) ] 5365432 3541802

TOTAL 43965944 37944863

Devegmet®eer - 16 ë Heefj®eeueveiele J³e³eI. keÀce&®eeefj³eeW keÀes Yegieleeve Deewj GvekesÀ efueS

HeéJeOeeve

II. YeeìkeÀ, keÀj Deewj efyepeueerIII. cegêCe Deewj uesKeve meeceieér

IV. efJe%eeHeve Deewj He´®eejV. yeQkeÀ keÀer mecHeefÊe Hej cetu³eÛemeVI. efveosµekeÀeW keÀer HeÀerme, YeÊes Deewj J³e³eVII. uesKee Hejer#ekeÀeW keÀer HeÀerme Deewj J³e³e

(µeeKee uesKee Hejer#ekeÀeW meefnle)

VIII. efJeefOe HeÝeejIX. [ekeÀ, J³e³e, leej, ìsueerHeÀesve DeeefoX. cejccele Deewj jKe-jKeeJeXI. yeerceeXII. Dev³e J³e³e

peesæ[

SCHEDULE - 16 : OPERATING EXPENSES

I. Payments to and provisions for

employees 13304796 12651535

II. Rent, Taxes and Lighting 1515764 1451423

III. Printing and Stationery 298490 286678

IV. Advertisement and Publicity 137475 148844

V. Depreciation on Bank’s property 968238 989783

VI. Directors’ fees, allowances and expenses 483 629

VII. Auditors’ fees and expenses 164009 137135

(includes for branch auditors)

VIII. Law Charges 102774 84709

IX. Postage, Telegrams, Telephones, etc. 129657 99461

X. Repairs and Maintenance 308594 279142

XI. Insurance 706203 528256

XII. Other Expenditure 3548182 2694275

TOTAL 21184665 19351870

SCHEDULE - 17 : SHARE OF EARNINGS/LOSSES IN ASSOCIATES

I. Regional Rural Banks (RRBs) 94467 151878

II. Others 130417 (267880)

TOTAL 224884 (116002)

Devegmet®eer - 17 ë men³eesieer mebmLeeDeeW ceW Depe&ve/neefve keÀe DebMe

I. #es$ee r³e ûeeceerCe yeQkeÀ (DeejDeejyeer)

II. Dev³epeesæ[


97

SCHEDULE 18:

SIGNIFICANT ACCOUNTING POLICIES

1) ACCOUNTING CONVENTION:

The accompanying financial statements have been prepared byfollowing the going concern concept, generally on a historical costbasis and conform to the statutory provisions and practices prevailingin India in respect of Indian Offices/Branches and in respective foreigncountries in respect of Foreign Offices/Branches, except as otherwise

stated.

2) CONSOLIDATION PROCEDURE

(a) The Consolidated financial statements include the accounts of Bankof India and its subsidiaries. The consolidated financial statementshave been prepared after eliminating intra-group transactions,unrealised profit/loss and making necessary adjustments whereverrequired to conform to uniform accounting policies. The financialstatements of the subsidiaries are drawn upto the same reporting dateas that of parent i.e. 31st March 2006.

(b) The accounting and reporting policies of Bank of India used in

preparation of these financial statements, reflect the banking industrypractices and conform to the generally accepted accounting principlesin India and the guidelines issued by the Reserve Bank of India andAccounting Standard 21 “Consolidated Financial Statements”, issued

by the Institute of Chartered Accountants of India. (ICAI).

(c) Accounting for Investment in associate companies is done under

Equity method in accordance with Accounting Standard 23,“Accounting for Investment in Associates in Consolidated FinancialStatements”, issued by the Institute of Chartered Accountants of

India. (ICAI).

3) TRANSACTIONS INVOLVING FOREIGN EXCHANGE:

3.1 Translation in respect of Integral Foreign operations:

i) Indian branches having foreign currency transactions have beenclassified as integral foreign operations and foreign exchangetransactions at these branches have been recorded at the rateprevailing on the date of the transaction.

ii) Monetary Foreign currency assets and liabilities are translatedat the closing rates notified by Foreign Exchange DealersAssociation of India (FEDAI) at the year end and non-monetaryitems are translated at the rate prevailing on the transactiondate.

iii) Acceptances, endorsements and other obligations andguarantees in foreign currency are carried at the closing ratesnotified by FEDAI at the year end.

iv) Exchange differences arising on settlement and translation ofmonetary items at the end of the financial year are recognisedas income or expenses in the period in which they arise.

3.2 Translation in respect of Non-Integral Foreign operations:Foreign branches are classified as non-integral foreignoperations and their financial statements are translated as

follows:

Devegmet®eer - 18 ë

cenÊJeHetCe& uesKee veerefle³eeB

1. uesKeebkeÀve HeOoefle

mebueive efJeÊeer³e efJeJejCe Òe®eefuele efJe®eejOeeje Deewj peejer HejbHeje kesÀ Devegmeejlew³eej efkeÀS ieS nQ Deewj Jen Yeejleer³e keÀe³ee&ue³eeW/MeeKeeDeeW kesÀ mebyebOe ceW YeejleDeewj efJeosMeer keÀe³ee&ue³eeW/MeeKeeDeeW kesÀ mebyebOe ceW efYeVe-efYeVe osMeeW ceW meeceev³eleëDeHevee³eer pee jner ÒeLee leLee meebefJeefOekeÀ GHeyebOeeW kesÀ DevegªHe nw peye lekeÀ efkeÀDev³eLee J³eJemLee ve oer ieF& nes ~

2. meceskeÀve keÀer Òeef¬eÀ³eeë

keÀ) mecesefkeÀle efJeÊeer³e efJeJejCe ceW yeQkeÀ Dee@ HeÀ Fbef[³ee Deewj FmekeÀer mene³ekeÀkebÀefHeve³eeW kesÀ Keeles Meeefceue nQ~ mecesefkeÀle efJeÊeer³e efJeJejCe keÀer uesKeeHe×efleceW SkeÀªHelee keÀe³ece jKeves kesÀ efue³es Deeblej-mecetn uesve osve Deewj iewj-Gieenerke=Àle ueeYe-neefve keÀe efJeueesHeve keÀjkesÀ, peneb keÀneR peªjer ngDee lees,DeeJeM³ekeÀ mecee³eespeve efkeÀ³ee ie³ee nw~ mene³ekeÀ kebÀHeefve³eeW kesÀ efJeÊeer³eefJeJejCe keÀes GmekesÀ cetue keÀer lejn Gmeer efleefLe ceW ³eLee 31 cee®e& 2006keÀes lew³eej efkeÀ³ee ie³ee nw ~

Ke) yeQkeÀ Dee@HeÀ Fbef[³ee keÀer uesKee Deewj efjHeesefì¥ie veerefle keÀe Òe³eesie efJeÊeer³eefJeJejCe yeveeles mece³e efkeÀ³ee ie³ee nw pees yeQeEkeÀie GÐeesie ceW Òe®eefuele nw DeewjYeejle ceW meeceev³eleë mJeerke=Àle uesKee He×efle nw leLee pees mece³e mece³e HejYeejleer³e efjpeJe& yeQkeÀ Üeje peejer efoMeeefveoxMeeW leLee Fbmìerìd³etì Dee@HeÀ®eeì&[ SkeÀeGvìsì DeeHeÀ Fbef[³ee (DeeF&meerSDeeF&) kesÀ uesKeebkeÀve ceevekeÀ-21, `mecesefkeÀle efJeÊeer³e efJeJejefCe³eeB' uesKee He×efle kesÀ Devegmeej nw~

ie) Fbmìerìd³etì Dee@HeÀ ®eeì&ì SkeÀeGbìWì Dee@HeÀ Fbef[³ee (DeeF&meerSDeeF&) Üeje peejeruesKeebkeÀve ceevekeÀ-23, ’mecesefkeÀle efJeÊeer³e efJeJejefCe³eeW ceW men³eesieer kebÀHeefve³eeWceW uesKeebkeÀve“ kesÀ DevegªHe F&eqkeÌJeìer ÒeCeeueer kesÀ Devleie&le men³eesieer kebÀHeefve³eeWceW efveJesMe keÀe uesKeebkeÀve efkeÀ³ee peelee nw ~

3. efJeosMeer cegêe efJeefvece³e mes mebye× uesve-osve

3.1 meceekeÀefuele efJeosMeer Heefj®eeueveeW kesÀ mebyebOe ceW mHeäerkeÀjCei) efJeosMeer cegêe ceW mebJ³eJenej keÀjves Jeeueer Yeejleer³e MeeKeeDeeW keÀes meceekeÀefuele

efJeosMeer Heefj®eeueveeW kesÀ ªHe ceW Jeieeake=Àle efkeÀ³ee ie³ee nw Deewj Fve MeeKeeDeeWceW efJeosMeer efJeefvece³e mebJ³eJenejeW keÀes mebJ³eJenej keÀer efleefLe Hej efJeÐeceeve ojHej efjkeÀe[& efkeÀ³ee ie³ee nw ~

ii) ceewefêkeÀ efJeosMeer cegêe keÀer Deeefmle³eeW SJeb os³eleeDeeW keÀe cetu³e nj Je<e& kesÀDeble ceW HesÀ[eF& Üeje DeefOemetef®ele ojeW kesÀ Devegmeej DeebkeÀe ie³ee nw Deewjiewj-ceewefêkeÀ ceoeW keÀes mebJ³eJenej keÀer efleefLe Hej efJeÐeceeve oj Hej DeebkeÀe/mHeä efkeÀ³ee ie³ee nw ~

iii) efJeosMeer cegêe ceW mekeÀej, He=ÿebkeÀve leLee oeef³elJe SJeb ieejbefì³eeb Je<e&meceeeqHle ceW HesÀ[eF& Üeje DeefOemetef®ele mebJejCe ojeW Hej DebefkeÀle keÀer ieF& nQ ~

iv) efveHeìeve kesÀ mece³e GlHeVe nesves Jeeues efJeefvece³e DeblejeW Deewj efJeÊeer³e Je<e&keÀer meceeeqHle Hej ceewefêkeÀ ceoeW kesÀ mHeäerkeÀjCe keÀes efpeme DeJeefOe mes JenmebyebefOele nw Gme DeJeefOe kesÀ efueS Dee³e DeLeJee J³e³e kesÀ ªHe ceW ceevee ie³ee nw~

3.2 meceekeÀueve jefnle efJeosMeer Heefj®eeueveeW kesÀ mebyebOe ceW mHeäerkeÀjCe

efJeosMeer MeeKeeDeeW keÀes meceekeÀueve jefnle efJeosMeer Heefj®eeueveeW kesÀ ªHe ceWJeieeake=Àle efkeÀ³ee ie³ee nw Deewj GvekesÀ efJeÊeer³e efJeJejCeHe$eeW keÀes efvecveevegmeejmHeä efkeÀ³ee peelee nwë


98

i) Assets and Liabilities (both monetary and non-monetary aswell as contingent liabilities) are translated at the closing ratesnotified by FEDAI at the year end.

ii) Income and expenses are translated at the quarterly averageclosing rate notified by FEDAI at the end of respective quarter.

iii) All resulting exchange differences are accumulated in a separateaccount ‘Foreign Currency Translation Reserve’ till the disposalof the net investments.

4) INVESTMENTS:

Investments are classified under ‘Held to Maturity’, ‘Held forTrading’ and ‘Available for Sale’ categories as per Reserve Bank ofIndia (RBI) guidelines. In conformity with the requirements in FormA of the Third Schedule to the Banking Regulation Act, 1949, theseare classified under six groups – Government Securities, OtherApproved Securities, Shares, Debentures and Bonds, Investmentsin Subsidiaries/Joint Ventures and Other Investments.

4.1 Basis of classification

Classification of an investment is done at the time of itsacquisition:

(a) Held to maturity

These comprise investments the bank intends to hold onto maturity.

(b) Held for trading

Investments acquired with the intention to trade within 90days from the date of purchase are classified under thishead.

(c) Available for sale

Investments which are not classified either as “Held toMaturity” or as “Held for Trading” are classified underthis head.

4.2 Method of valuation

Investments are valued in accordance with the RBI guidelines.

(a) Held to Maturity

Investments included in this category are carried at theiracquisition cost. Premium, if any, paid on acquisition isamortized using constant yield method over the remainingperiod of maturity.

(b) Held for Trading / Available for Sale

Investments under these categories are valued scrip-wise.Appreciation / depreciation is aggregated for each classof securities and net depreciation as per applicable normsis recognised in the profit and loss account, whereas netappreciation is ignored.

(c) Investments held at foreign branches are carried at lowerof the value as per the statutory provisions prevailing atthe respective foreign countries and as per RBI guidelinesissued from time to time.

5) ADVANCES:

(a) In terms of guidelines issued by the RBI, advances to borrowersare classified into “Performing” or “Non-Performing” assetsbased on recovery of principal / interest. Non-Performing Assets(NPAs) are further classified as Sub-Standard, Doubtful andLoss Assets, and provision thereon is made in accordance withthe Prudential norms prescribed by the RBI from time to time.

(b) In respect of advances at Foreign Branches, provision is madeas per the statutory provisions prevalent at the respective foreigncountries, or as per the RBI guidelines, whichever is higher.

i) Deeefmle³eeW Deewj os³eleeDeeW (ceewefêkeÀ Deewj iewj-ceewefêkeÀ oesveeW kesÀ meeLe meeLeDeekeÀeqmcekeÀ os³eleeDeeW) keÀes Je<e& keÀer meceeeqHle Hej Yeejleer³e efJeosMeer cegêe J³eeHeejermebIe (HesÀ[eF&) Üeje DeefOemetef®ele mebJejCe ojeW kesÀ DeeOeej Hej DeebkeÀe/mHeäefkeÀ³ee peelee nw~

ii) Dee³e Deewj J³e³eeW keÀes mebyebe fOele efleceener keÀer meceeeqHle Hej HesÀ[eF& Üejemetef®ele efleceener Deewmeleve uesKeeyeboer oj Hej mHeä efkeÀ³ee peelee nw~

iii) meYeer HeefjCeeceer efJeefvece³e DeblejeW keÀes efveJeue efveJesMeeW kesÀ efveHeìeve lekeÀ SkeÀDeueie Keeles efJeosMeer cegêe mHeäerkeÀjCe efjpeJe& ceW mebef®ele efkeÀ³ee peelee nw~

4) efveJesMe

efveJesMe keÀe JeieeakeÀjCe Yeejleer³e efjpeJe& yeQkeÀ kesÀ efoMeeefveoxMeeW kesÀ Devegmeej’keÀejesyeej kesÀ efueS jKes ieS“ ÞesefCe³eeW ceW efkeÀ³ee peelee nw yeQefkebÀie efJeefvece³eDeefOeefve³ece, 1949 keÀer leermejer Devegmet®eer kesÀ HeÀece& S keÀer DeHes#eeDeeW kesÀ DevegªHeFvekeÀe JeieeakeÀjCe íë mecetneWë mejkeÀejer ÒeefleYetefle³eeb, Dev³e Devegceesefole ÒeefleYetefle³eeb,Mes³ej, ef[yesv®ej Deewj yevOeHe$e, mene³ekeÀ keÀcHeefve³eeW/meb³egkeÌle GÐeceeW ceW efveJesMeDeewj Dev³e efveJesMe ceW efkeÀ³ee peelee nw ~

4.1 JeieeakeÀjCe keÀe DeeOeej

efveJesMeeW keÀe JeieeakeÀjCe GmekeÀer Kejero kesÀ mece³e efkeÀ³ee peelee nw~

(keÀ) HeefjHekeÌJelee kesÀ efueS efveOee&efjle

Ssmes efveJesMeeW keÀe mecetn efpevnW yeQkeÀ HeefjJekeÌJelee lekeÀ jKelee nw~

(Ke) keÀejesyeej kesÀ efueS efveOee&efjle

Ssmes ÒeefleYetefle³eeb efpevnW cegK³e ªHe mes Kejero keÀer leejerKe mes 90efoveeW kesÀ Deboj Hegveë efye¬eÀer kesÀ efueS jKee peelee nw GvnW Fme Meer<e&kesÀ Debleie&le Jeieeake=Àle efkeÀ³ee ie³ee nw~

(ie) efye¬eÀer kesÀ efueS GHeueyOe

Ssmes efveJesMe efpevekeÀe JeieeakeÀjCe HeefjHekeÌJelee kesÀ efueS efveOee&efjleDeLeJee keÀejesyeej kesÀ efueS efveOee&efjle ªHe ceW vener efkeÀ³ee nw GvnWFme Meer<e& ceW jKee ie³ee nw~

4.2 cetu³eebkeÀve keÀe lejerkeÀe efveJesMeeW keÀe cetu³eebkeÀve Yeejleer³e efjpeJe& yeQkeÀ kesÀ efoMeeefveoxMeeW kesÀ Devegmeej

efkeÀ³ee peelee nw~(keÀ) HeefjHekeÌJelee nsleg efveOee&efjle

Fme ÞesCeer kesÀ lenle efveJesMeeW keÀes GvekesÀ DeefOeûenCe ueeiele Hej efue³ee ie³ee nw,FvekesÀ DeefOeûenCe Hej Yegieleeve keÀer ieF& Òeerefce³ece keÀer jeefMe, ³eefo keÀesF& nes lees,Gmes melele Depe&ve ÒeCeeueer GHe³eesie keÀj HeefjHekeÌJelee keÀer Mes<e ye®eer DeJeefOe ceWHeefjMeesefOele efkeÀ³ee ie³ee nw~

(Ke) keÀejesyeej kesÀ efueS efveOee&efjle/efye¬eÀer kesÀ efueS GHeueyOeFme ÞesCeer ceW ÒeefleYetefle³eeW kesÀ eqm¬eÀHeJeej cetu³eebefkeÀle efkeÀ³ee ie³ee nw, ÒeefleYetefle³eeWkesÀ cetu³eJe=ef×/cetu³e-Ûeme keÀes GvekesÀ Jeiee&vegmeej peesæ[e/Ieìe³ee ie³ee nw DeewjefveJeue cetu³e-Ûeme keÀes ueeYe Je neefve KeeleeW keÀer ceev³e He×efle³eeW kesÀ Deveg©Heueiee³ee ie³ee nw peyeefkeÀ efveJeue cetu³eJe=ef× keÀes O³eeve ceW veern efue³ee ie³ee nw~

(ie) efJeosMeer MeeKeeDeeW kesÀ efveJesMeeW kesÀ mebyebefOele efJeosMeer kesÀvêeW Hej Òe®eefuelemeebefJeefOekeÀ ÒeeJeOeeveeW ³ee Yeejleer³e efjpeJe& yeQkeÀ kesÀ efoMeeefveoxMeeW kesÀ Devegmeejcetu³e mes keÀce cetu³e Hej efve³ele efkeÀ³ee ie³ee nw~

5) DeefûeceëkeÀ) Yeejleer³e efjpeJe& yeQkeÀ Üeje peejer efoMeeefveoxxMeeW kesÀ Devegmeej GOeejkeÀlee&

Üeje Deefûece keÀer cetue/y³eepe keÀer Jemetueer kesÀ DeeOeej Hej GlHeeokeÀ-DeLeJee DeveglHeeokeÀ Deeefmle³eeW ceW Jeieeake=Àle efkeÀ³ee ie³ee nw~ Yeejleer³eefjpeJe& yeQkeÀ Üeje efveOee&efjle efJeJeskeÀHetCe& ceeveoC[eW kesÀ Deveg©He ÒeeJeOeeve keÀjDeveglHeeokeÀ Deeefmle³eeW keÀes Hegveë GHe-ceevekeÀ, mebefoiOe SJeb neefveiele Deeefmle³eeWceW Jeieeake=Àle efkeÀ³ee ie³ee nw~

Ke) efJeosMeer MeeKeeDeeW kesÀ DeefûeceeW kesÀ ceeceueeW ceW mebyebefOele efJeosMeer keWÀêesb DeLeJeeYeejleer³e efjpeJe& yeQkeÀ kesÀ efoMeeefveoxMeeW kesÀ Devegmeej, pees Yeer DeefOekeÀ nes,meebefJeefOekeÀ ÒeeJeOeeve jKes ieS nQ~


99

ie) DeefûeceeW kesÀ Devepe&keÀ keÀer cee$ee keÀes O³eeve ceW jKekeÀj ÒeyebOeve kesÀ cetu³eebkeÀvekesÀ DeeOeej Hej DeveglHeeokeÀ DeefûeceeW ceW efJeefMeä ÒeeJeOeeve efkeÀS ieS nQ, ³enYeejleer³e efjpeJe& yeQkeÀ Üeje efveOee&efjle v³etvelece ÒeeJeOeeve kesÀ ceeHeoC[eW kesÀDeO³eOeerve nQ~

Ie) DeveglHeeokeÀ DeefûeceeW kesÀ ÒeeJeOeeveeW SJeb DeveglHeeokeÀ DeefûeceeW kesÀ DeJemetueerke=Àley³eepe keÀes kegÀue DeefûeceeW mes Ieìe³ee ie³ee nw~

6) efmLej Deeefmle³eebë

keÀ) Deeefmle³eeW kesÀ Hegvecet&u³eebefkeÀle nesves kesÀ DeefleefjkeÌle, efmLej Deeefmle³eeW keÀesHejbHejeiele ueeiele ceW yelee³ee ie³ee nw~ Hegvecet&u³eebkeÀve mes Je=ef× keÀes Hegvecet&u³eebkeÀveefjpeJe& ceW pecee efkeÀ³ee ie³ee nw~

Ke) Heefjmej ceW Yetefce keÀer ueeiele Meeefceue nw~

7) De®eue Deeefmle³eeW Hej cetu³eÛeme

(i) cetu³eÛemeë

keÀ) Deeefmle³eeW Hej (Hegvecet&u³eebefkeÀle Deeefmle³eeW keÀes efceueekeÀj) yeQkeÀ ÜejeefveOee&efjle ojeW Hej cetu³eÛeefmele yener cetu³e Hej ÒeYeeefjle efkeÀ³ee ie³ee nwDeewj keÀcH³etìjeW Hej Yeejleer³e efjpeJe& yeQkeÀ Üeje efveOee&efjle oj mes meerOeerjsKee He×efle mes cetu³eÛeme ueiee³ee nw~

Ke) FmeceW HeefjJeOe&ve keÀes HetCe& Je<e& kesÀ efueS ÒeeJeOeeve efkeÀ³ee ie³ee, FmeceWDeeefmle kesÀ keÀe³eeaue keÀjves keÀer leejerKe keÀes O³eeve ceW veneR jKee ie³ee nw~

ie) Deeefmle kesÀ Je<e& ceW efye¬eÀer/efveHeìeve keÀes ÒeeJeOeeve ceW veneR efue³ee ie³ee nw~

Ie) Deeefmle³eeW kesÀ Hegvecet&u³eebefkeÀle DebMe keÀes Hegvecet&u³eebkeÀve efjpeJe& Keeles ceWmecee³eesefpele efkeÀ³ee ie³ee nw~

ii) peneB Yetefce Deewj YeJeve keÀer ueeiele Deueie-Deueie veneR keÀer pee mekeÀleer nw,mecHetCe& ueeiele Hej cetu³eÛeme keÀe ÒeeJeOeeve efkeÀ³ee ie³ee nw~

iii) HeÆeOeeefjle Yetefce Hej ÒeoÊe Òeerefce³ece HeÆs keÀer DeJeefOe ceW HeefjMeesefOele nw.

8) jepemJe efveOee&jCe

keÀ) Yeejleer³e efjpeJe& yeQkeÀ kesÀ efoMeeefveoxMeeW kesÀ Devegmeej DeveglHeeokeÀ Deeefmle³eeW,peneB Dee³e keÀe efveOee&jCe Jemetueer Hej neslee nw, keÀes íesæ[keÀj Dee³e/J³e³ekeÀe uesKeebkeÀve meeceev³ele³ee ÒeesodYeJeve DeeOeej Hej efkeÀ³ee peelee nw.

Ke) Yeejleer³e efjpeJe& yeQkeÀ kesÀ efoMeeefveoxMeeW kesÀ Devegmeej DeveglHeeokeÀ KeeleeW keÀerJemetueer keÀes meJe&ÒeLece y³eepe ceW mecee³eesefpele efkeÀ³ee ie³ee nw Deewj lelHeM®eeledDev³e os³e jeefMe³eeW ceW mecee³eesefpele efkeÀ³ee ie³ee nw~

ie) Dee³ekeÀj JeeHemeer Hej y³eepe keÀe efveOee&jCe mebyebefOele ÒeeefOekeÀeefj³eeW keÀerDee%ee kesÀ Devegmeej efveefM®ele efkeÀ³ee peelee nw~

9) mesJee efveJe=efÊe ueeYeë

keÀ) YeefJe<³e efveefOe ceW DebMeoeve ueeYeneefve Keeles keÀes ÒeYeeefjle efkeÀ³e ie³ee nw~

Ke) mìeHeÀ GHeoeve, HeWMeve leLee ígÆer vekeÀoerkeÀjCe ueeYeeW mebyebOeer os³eleeDeeW keÀeÒeeJeOeeve yeerceebefkeÀkeÀ cetu³eebkeÀve kesÀ Devegmeej efkeÀ³e ie³ee nw~

10) HeÆeke=Àle Deeefmle³eeBë

HeÆes keÀer Dee³e keÀer Hen®eeve HeÆs keÀer ÒeeLeefcekeÀ DeJeefOe Hej DeevleefjkeÀ ÒeefleHeÀueoj He×efle kesÀ Devegmeej keÀer peeleer nw Deewj GmekeÀe uesKeebkeÀve Yeejleer³e meveoeruesKeekeÀej mebmLeeve (DeeF&meerSDeeF&) Üeje peejer efkeÀ³es ie³es uesKeebkeÀve ceevekeÀ 19

HeÆeW keÀe uesKeebkeÀve kesÀ Devegmeej efkeÀ³ee ie³ee nw~

11) Dee³e Hej keÀjë

Fbmìerìd³etì Dee@HeÀ ®eeì&[& SkeÀeGbìWì Dee@HeÀ Fbef[³ee (DeeF&meerSDeeF&) Üeje peejeruesKeebkeÀve ceevekeÀ-22, Dee³e Hej keÀjeW kesÀ efueS uesKeekeÀve kesÀ Deveg©He Dee³ekeÀjceW Je<e& kesÀ oewjeve Jele&ceeve keÀj ÒeeJeOeeve Deewj Deeefmle³eeW ³ee os³eleeDeeW HejDeemLeefiele keÀj ceW Meg× HeefjJele&ve Meeefceue nw~

(c) Specific provisions in respect of NPAs are made, based on themanagement’s assessment of the degree of impairment of theadvances, subject to the minimum provisioning normsprescribed by the RBI from time to time.

(d) Provisions in respect of NPAs and unrealised interest arededucted from total advances.

6) FIXED ASSETS:

(a) Fixed assets are stated at historic cost, except in the case ofassets which have been revalued. The appreciation on revaluationis credited to Revaluation Reserve.

(b) Cost of premises include cost of land.

7) DEPRECIATION ON FIXED ASSETS:

(i) Depreciation :

(a) on assets (including revalued assets), is charged on theWritten Down Value at the rates determined by the bank;and on computers, on the Straight Line Method, at therates prescribed by the RBI;

(b) on additions is provided for the full year, irrespective ofthe date on which the assets were put to use;

(c) is not provided in the year of sale/disposal of an asset;

(d) on the revalued portion of assets, is adjusted against theRevaluation Reserve

(ii) Where the cost of land and building could not be separatelyascertained, depreciation is provided on the composite cost.

(iii) Premium paid on leasehold land is amortised over the period oflease.

8) REVENUE RECOGNITION :

(a) Income/Expenditure is generally accounted for on accrual basis,except in the case of income on NPAs which is recognised onrealisation, in terms of the RBI guidelines issued from time totime.

(b) In terms of RBI guidelines issued from time to time, recoveriesmade from NPA accounts are appropriated first towards interestand thereafter towards other dues.

(c) Interest on income tax refund is recognised on the basis of therelevant orders of the authorities.

9) RETIREMENT BENEFITS :

(a) Contribution to the Provident Fund is charged to Profit andLoss account.

(b) Liabilities in respect of gratuity, pension and leave encashmentbenefits to staff are provided as per actuarial valuation.

10) LEASED ASSETS :

Lease Income is recognised based on the Internal Rate of Returnmethod over the primary period of the lease and is accounted for inaccordance with the Accounting Standard 19 on “Accounting forLeases”, issued by the Institute of Chartered Accountants of India(ICAI).

11) TAXES ON INCOME

Income Tax comprises the current tax provision and net change indeferred tax assets or liabilities in the year, in accordance with theAccounting Standard 22 , “ Accounting for Taxes on Income” issuedby ICAI.


100

SCHEDULE 19NOTES FORMING PART OF ACCOUNTS

1. The subsidiary (which along with Bank of India, the parent, constitute

the group), considered in the preparation of the Consolidated Financial

Statements is:

Name of Subsidiary Country of Proportion

Incorporation of Ownership

BOI Shareholding Ltd. India 51%

2. During the year, the Bank annulled the forfeiture in respect of 600

equity shares of Rs. 10 each. Consequently, an aggregate amount of

Rs.6000 representing the face value of Rs. 10 per share has been

added to the Paid-up Capital; an amount of Rs.6000 has been

transferred from Forfeited Shares Account and an amount of Rs.2000

has been transferred to Share Premium Account.

3. In terms of RBI guidelines, the bank has transferred an amount of

Rs. 321.76 crores (Previous Year Rs. 220 crores) from Investment

Fluctuation Reserve to Profit and Loss Appropriation Account.

4. During the year, the premium on investments under ‘Held to Maturity’

has been amortised on Constant Yield Method as against the earlier

practice of Straight Line Method. Consequent to the change, the

premium amortized during the year is lesser by Rs. 27.17 crores and

the profit before tax is higher to that extent.

5. Balancing of Subsidiary Ledger Accounts and confirmation/

reconciliation of balances with foreign branches and NOSTRO

Accounts, and adjustment of entries in Suspense, Drafts Payable,

Clearing Difference, etc. is in progress on an on-going basis.

Initial matching of entries in respect of inter-branch transactions till

31st March 2006, is continuing to be carried out. Matching/

reconciliation of balance entries is being followed-up. Pending final

clearance/adjustment of the above, the overall impact, if any, on the

accounts, in the opinion of the management, is not likely to be

significant.

6. The following information is disclosed in terms of guidelines issued

by RBI:

(a) Capital :

Items 31.03.2006 31.03.2005

i) CRAR (%) 10.94% 11.73%

ii) CRAR - Tier I Capital (%) 6.95% 7.27%

iii) CRAR - Tier II Capital (%) 3.99% 4.46%

iv) Percentage of the shareholding 69.47% 69.47%

of the Government of India.

Devegmet®eer 19ë

KeeleeW kesÀ Yeeie kesÀ ªHe ceW veesì

1. mecesefkeÀle efJeÊeer³e efJeJejCeeW keÀes lew³eej keÀjves kesÀ efueS efJe®eej ceW ueer ieF& mene³ekeÀkebÀHeveer (pees cetue yeQkeÀ Dee@HeÀ Fbef[³ee, kesÀ meeLe ieefþle mecetn nw) efvecveefueefKele nw

mene³ekeÀ kebÀHeveer keÀe veece efveieceve osMe mJeeefcelJe keÀemeceevegHeele

keÀ) yeerDeesDeeF& Mes³ej Yeejle 51%nesefu[bie efue.

2. Je<e& kesÀ oewjeve yeQkeÀ ves Òel³eskeÀ ©He³es 10/- cetu³e kesÀ 600 Mes³ejeW kesÀ meceHenjCe

keÀes jÎ efkeÀ³ee~ HeÀuemJeªHe 600 F&eqkeÌJeìer Mes³ejeW kesÀ DebefkeÀle cetu³e Hej (kesÀ

DeeOeej Hej) ©He³es 6,000, keÀer meceûe jeefMe ®egkeÀlee Hetbpeer ceW peesæ[er ieF&. ©He³es

6,000/- keÀer jeefMe meceHenjCe (peyleer) Mes³ej Keeles mes Debleefjle keÀer ieF& nw Deewj

©He³es 2,000/- keÀer jeefMe Mes³ej Òeerefce³ece Keeles ceW Debleefjle keÀer ieF& nw~

3. Yeejleer³e efjpeJe& yeQkeÀ kesÀ efoMeeefveoxMeeW kesÀ DevegªHe yeQkeÀ ves 321.76 keÀjesæ[

©He³es (efHeíues Je<e& 220 keÀjesæ[) keÀer jeefMe efveJesMe Ieì-yeæ{ Deejef#eefle mes ueeYe

SJeb neefve efJeefve³eesie Keeles ceW Debleefjle keÀer nw.

4. Je<e& kesÀ oewjeve HeefjHekeÌJelee lekeÀ Oeeefjle Meer<e& kesÀ Devleie&le efveJesMeeWs Hej Òeerefce³ece

keÀes efHeíueer meerOeer jsKee He×efle kesÀ yepee³e melele Depe&ve He×efle kesÀ Devegmeej

HeefjMeesefOele efkeÀ³ee ie³ee nw~ Fme HeefjJele&ve kesÀ HeefjCeecemJeªHe Je<e& kesÀ oewjeve

HeefjMeesefOele Òeerefce³ece 27.17 keÀjesæ[ ©He³es keÀce nw Deewj keÀj mes HetJe& ueeYe Gmeer

DevegHeele ceW DeefOekeÀ nw~

5. DevegHetjkeÀ Keelee uesKes keÀe legueve Deewj uesKee meceeOeeve efJeosMeer MeeKee Deewj

veesmìês KeeleeW mes Hegefä/uesKee meceeOeeve Deewj G®eble, os³e-[êHeÌì, meceeMeesOeve

efYeVelee Deeefo ceW ÒeefJeefä³eeW keÀe mecee³eespeve ®eeuet Òeef¬eÀ³ee kesÀ ªHe ceW Òeieefle Hej

nw~ 31-03-2006 lekeÀ Deblej MeeKee keÀejesyeej kesÀ efJe<e³e ceW ÒeefJeefä³eeW keÀe

ÒeejbefYekeÀ efceueeve, efkeÀ³ee ie³ee nw~ Mes<e ÒeefJeefä³eeW kesÀ efceueeve/meceeOeeve nsleg

ÒeYeeJeer ªHe ceW DevegJeleea keÀe³e& efkeÀ³ee pee jne nw~ GHejeskeÌle Debeflece efveHeìeve/

mecee³eespeve keÀe ÒeyebOeve keÀer je³e ceW uesKeeW Hej meceûe ÒeYeeJe veieC³e jnsiee~

6. efvecveefueefKele peevekeÀejer keÀe Yeejleer³e efjpeJe& yeQkeÀ kesÀ efoMeeefveoxMeeW kesÀ DevegmeejÒekeÀìve efkeÀ³ee ie³ee nw~(keÀ) HetBpeer ë

ceo 31.03.2006 31.03.2005

i) meerDeejSDeej (%) 10.94% 11.73%

ii) meerDeejSDeejë ìe³ej I Hetbpeer (%) 6.95% 7.27%

iii) meerDeejSDeejë ìe³ej II Hetbpeer (%) 3.99% 4.46%

iv) Yeejle mejkeÀej keÀer Mes³ej Oeeefjlee 69.47% 69.47%

keÀe HeéfleMele


101

(b) Provisions & Contingencies :

The break-up of “Provisions and Contingencies” appearing

in the Profit and Loss Account is as under :

(Rs. in crores)

Items 2005-06 2004-05

Provision for NPA 535.61 351.23

Depreciation in Value of Investments 91.31 494.17

Provision for Taxation 201.26 125.22

Deferred Taxation ( Asset ) 14.50 (3.26)

Provisions on Standard Assets 88.51 30.51

Provision for Country Risk 3.00 5.33

Other Provisions 67.13 118.09

Grand Total 1001.32 1121.29

7. The following information is disclosed in terms of Accounting

Standards issued by the Institute of Chartered Accountants of

India

(a) Related Party Transactions:

I) List of Related Parties:

(a) Key Managerial Personnel :

Chairman & Managing Director

Shri M. Balachandran

Executive Director

Shri P. L. Gairola

(b) Subsidiaries :

(i) BOI Shareholding Ltd.

( Ownership Interest 51%)

(ii) Bank of India Finance (Kenya) Ltd.

(Since merged; derecognition and

liquidation are pending)

(c) Associates :

(i) Securities Trading Corporation of India Ltd .

( Ownership Interest 29.96%)

(ii) Indo-Zambia Bank Ltd.

( Ownership Interest 20%)

(iii) 16 Regional Rural Banks sponsored

by the Bank ( Ownership Interest 35%)

Avadh Gramin Bank; Baitarni Gramya Bank; Bhandara Gramin

Bank; Barabanki Gramin Bank; Chandrapur Gadchiroli Gramin Bank;

Dewas Shajapur Kshetriya Gramin Bank; Farrukhabad Gramin

Bank;Giridih Kshetriya Gramin Bank; Hazaribagh Kshetriya Gramin

Bank; Indore Ujjain Kshetriya Gramin Bank; Nimhar Kshetriya

Gramin Bank; Rajgarh Sehore Kshetriya Gramin Bank; Ranchi

Kshetriya Gramin Bank; Ratnagiri Sindhudurg Gramin Bank;

Singhbhum Kshetriya Gramin Bank; Solapur Gramin Bank.

(Ke) ÒeeJeOeeve SJeb DeekeÀeqmcekeÀleeSbëueeYe SJeb neefve Keeles ceW oMee&S ieS ©He ceW ÒeeJeOeeve SJeb DeekeÀeqmcekeÀleeDeeWkeÀe efJeJejCe efvecveevegmeej nwë

(©. keÀjesæ[ ceW)

ceo 2005-06 2004-05

DeveglHeeokeÀ Deeefmle³eeW nsleg ÒeeJeOeeve 535.61 351.23

efveJesMeeW kesÀ cetu³e ceW cetu³e-Ûeme 91.31 494.17

keÀjeOeeve nsleg ÒeeJeOeeve 201.26 125.22

DeemLeefiele keÀjeOeeve (Deeefmle) 14.50 (3.26)

ceevekeÀ Deeefmle³eeW kesÀ efueS ÒeeJeOeeve 88.51 30.51

osMe keÀer peesefKece kesÀ efueS ÒeeJeOeeve 3.00 5.33

Dev³e ÒeeJeOeeve 67.13 118.09

kegÀue 1001.32 1121.29

7. Yeejleer³e meveoer uesKeekeÀej mebmLeeve Üeje peejer uesKeebkeÀve ceevekeÀeW kesÀ DevegmeejefvecveefueefKele peevekeÀejer ÒekeÀì keÀer ie³eer nw

(keÀ) mebJ³eJenejes mes mebyebefOele He#ekeÀej

I) mebyebefOele He#ekeÀejeW keÀer met®eer

(keÀ) cegK³e ÒeyebOekeÀer³e keÀeefce&keÀë

DeO³e#e SJeb ÒeyebOe efveosMekeÀ

Þeer Sce. yeeue®ebêve

keÀe³e&HeeuekeÀ efveosMekeÀ

Þeer Heer. Sue. iewjesuee

(Ke) mene³ekeÀ keÀcHeefve³eebë

(i) yeer Dees DeeF& Mes³ej nesefu[bie efueefceìs[

( 51% ceeefuekeÀevee nkeÀ)

(ii) yeQkeÀ Dee@HeÀ Fbef[³ee HeÀeFveWme (kesÀv³ee) efueefce. (Deye

efJeueef³ele, ceev³elee nìevee Deewj HeefjmeceeHeve ueeqcyele nw~)

(ie) men³eesieer ë

(i) Yeejleer³e ÒeefleYetefle J³eeHeej efveiece efueefce.

(29.96% ceeefuekeÀevee nkeÀ)

(ii) Fb[es peeeqcye³ee yeQkeÀ efueefce.

(ceeefuekeÀevee nkeÀ 20%)

(iii) yeQkeÀ Üeje Òee³eesefpele 16 #es$eer³e ûeeceerCe yeQkeÀ

(35% ceeefuekeÀevee nkeÀ)

DeJeOe ûeeceerCe yeQkeÀë yewlejCeer ûeeceerCe yeQkeÀë Yeb[eje ûeeceerCe yeQkeÀë yeejeyebkeÀer ûeeceerCe

yeQkeÀë ®evêHegj ie[ef®ejesueer ûeeceerCe yeQkeÀë osJeeme MeepeeHegj #es$eer³e ûeeceerCe yeQkeÀë

HeÀ©&Keeyeeo ûeeceerCe yeQkeÀë efiejer[ern #es$eer³e ûeeceerCe yeQkeÀë npeejeryeeie #es$eer³e

ûeeceerCe yeQkeÀë Fvoewj Gppewve #es$eer³e ûeeceerCe yeQkeÀë efveceeæ[ #es$eer³e ûeeceerCe yeQkeÀë

jepeieæ{ efmenesj #es$eer³e ûeeceerCe yeQkeÀë jeb®eer #es$eer³e ûeeceerCe yeQkeÀë jlveeefiejer

eEmeOegogie& ûeeceerCe yeQkeÀë meesueeHegj ûeeceerCe yeQkeÀë


102

II) mebyebefOele He#ekeÀejeW kesÀ meeLe mebJ³eJenej II) Transactions with Related Parties

(©. keÀjesæ[ ceWb) (Rs. in crore)

men³eesieer cegK³e ÒeyebOeve cegK³e ÒeyebOevemeb³egkeÌle GÐece keÀeefce&keÀ keÀeefce&keÀ kesÀ mebyebOeer kegÀue

ceoW / mebyebefOele He#ekeÀej Items/ Related Party Associates/ Key Management Relatives of Total

Joint ventures Personnel Key Management

Personnel

2005-06 2004-05 2005-06 2004-05 2005-06 2004-05 2005-06 2004-05

pecee jeefMe³eeb Deposit 16.97 — 0.06 — 0.01 — 17.04 —

Je<e& kesÀ oewjeve DeefOekeÀlece Maximum during the year 62.56 — 0.09 — 0.01 — 62.66 —

peceejeefMe³eeW keÀe efve³eespeve Placement of deposits — 39.17 — 0.06 — — — 39.23

Je<e& kesÀ oewjeve DeefOekeÀlece Maximum during the year — 62.46 — 0.08 — — — 62.54

efveJesMe Investments 171.84 171.84 — — — — 171.84 171.84

Je<e& kesÀ oewjeve DeefOekeÀlece Maximum during the year 171.84 171.84 — — — — 171.84 171.84

ceebie/met®evee/ceer³eeoer cegêe ceW Lending in Call / 1075.00 8875.20 — — — — 1075.00 8875.20

GOeej osvee Notice / Term Money


Dev³e GOeej osvee Other Lending — — — — — — — —

Je<e& kesÀ oewjeve DeefOekeÀlece Maximum during the year — — — — — — — —

ceebie/met®evee/ceer³eeoer cegêe Borrowings in Call / 0.30 20.00 — — — — 0.30 20.00

GOeej uesvee Notice / Term Money


mejkeÀejer ÒeefleYetefle/ì^spejer Sale of Govt. Securities / 468.07 392.68 — — — — 468.07 392.68

efyeueeW/yeeb[es keÀer efye¬eÀer Treasury Bills / Bonds

mejkeÀejer ÒeefleYetefle/ì^spejer Purchase of Govt. Securities / 3368.26 1123.63 — — — — 3368.26 1123.63

efyeueeW/yeeB[eW keÀer Kejero Treasury Bills / Bonds

iewj-efveefOekeÀ Jee³eos Non-funded commit-ments — — — — — — — —

Je<e& kesÀ oewjeve DeefOekeÀlece Maximum during the year — — — — — — — —

Deoe efkeÀ³ee ie³ee y³eepe Interest paid 1.38 0.36 * * * — 1.38 0.36

ÒeeHle y³eepe Interest received 0.53 3.05 — — — — 0.53 3.05

He´oÊe ueeYeebMe DividendPaid — — * — * — — —

ÒeeHle ueeYeebMe Dividend Received — 14.98 — — — — — 14.98

ÒeeH³e Dev³e ÒeYeej Other Charges receivable 0.13 0.13 — — — — 0.13 0.13

* ®etbefkeÀ JeemleefJekeÀ jeefMe ©. 50000/-, mes keÀce nw~ Deleë Fmes oMee&³ee veneR ie³ee nw~* Actual amount being less than Rs. 50000/-, the same is not furnished.

(b) Lease Financing:(i) The contractual maturities of the Bank’s investment in lease

financing and its components, which are included in Advancesare set out below:

Rs. in crores)Sr. Particulars 31-03-2006 31-03-2005Noa) Gross Investments 29.43 55.09b) Lease payment receivables(i) not later than 1 year 15.64 26.58(ii) later than 1 year

but not later than 5 years 13.79 25.13(iii) later than 5 years NIL 3.38

TOTAL 29.43 55.09c) Unearned finance income 2.81 6.04d) Net investments [ a – c ] 26.62 49.05

(ii) Lease income of Rs. 3.21 crores ( Previous year Rs 5.53 crores)is included under Interest Earned.

(Ke) HeÆe efJeÊeHees<eCeë(i) HeÆe efJeÊeHees<eCe Deewj FmekesÀ IeìkeÀeW ceW yeQkeÀ kesÀ efveJesMe keÀer mebefJeoeiele

HeefjHekeÌJeleeSb, pees DeefûeceeW ceW Meeefceue keÀer ieF& nw keÀe GuuesKe veer®es efkeÀ³eeie³ee nw~

(©. keÀjesæ[ ceW)¬eÀ. efJeJejCe 31-03-2006 31-03-2005meb.keÀ) kegÀue efveJesMe 29.43 55.09Ke) ÒeeH³e HeÆe Yegieleeve(i) 1 Je<e& mes DeefOekeÀ veneR 15.64 26.58(ii) 1 Je<e& mes DeefOekeÀ efkeÀvleg

5 Je<e& mes DeefOekeÀ veneR 13.79 25.13(iii) 5 Je<e& mes DeefOekeÀ Metv³e 3.38

kegÀue 29.43 55.09c) Deveefpe&le efJeÊe Dee³e 2.81 6.04d) Meg× efveJesMe (keÀ-ie) 26.62 49.05

(ii) 3.21 keÀjesæ[ keÀer HeÆe Dee³e (efJeiele Je<e& ©. 5.53 keÀjesæ[ keÀes Deefpe&ley³eepe ceW Meeefceue efkeÀ³ee ie³ee nw~


103

(c) Earnings Per Share

Sr. Particulars 2005-2006 2004-2005

No.

1. Basic and Diluted E.P.S. Rs. 14.87 Rs. 6.44

Calculation of Basic E.P.S.

Sr. Particulars 2005-2006 2004-2005

No

(A) Net Profit for the year

attributable to Equity 724.63 313.71

Shareholders crores crores

(B) Weighted Average Number 48.74 48.74

of Equity shares crores crores

(C) Basic Earnings per Share(A/B) Rs. 14.87 Rs. 6.44

(D) Nominal Value per Share Rs. 10.00 Rs. 10.00

(d) Deferred Taxation:

(i) Deferred tax liabilities are recognised for future taxconsequences of temporary differences arising between thecarrying values of assets and liabilities and their respective taxbases and operating carry forward losses. Deferred tax liabilitiesare recognised only after giving due consideration to prudence.Deferred tax assets and liabilities are measured using tax ratesand tax laws that have been enacted or substantively enacted bythe balance sheet date. The impact on deferred tax assets andliabilities on account of a change in the tax rates is also recognised

in the income statement.

ii) During the year, an amount of Rs. 10.52 crores (net) [Previous

year Rs. 8.13 crores (net) was credited] has been debited to the

Profit and Loss account by way of adjustment of Provision for

deferred tax.

iii) Major components of Deferred Tax Assets and Deferred Tax

Liabilities.

(Rs. in crores)Sr. Particulars 31.03.2006 31.03.2005No

Deferred Tax Assetsi) On account of timing difference

towards provisions 35.07 40.21ii) Others 1.51 21.19

Total Deferred Tax Assets 36.58 61.40Deferred Tax Liabilities

i) On account of the timingdifference between the bookdepreciation and IncomeTax depreciation 3.46 26.22

ii) Others 8.46 ——-Total Deferred Tax Liabilities 11.92 26.22Net Deferred Tax Assets/(Liabilities) 24.66 35.18

(ie) Òeefle Mes³ej Depe&ve

¬eÀ. efJeJejCe 2005-2006 2004-2005

meb.

1. DeeOeejYetle Deewj Deewmele F&.Heer.Sme. ©. 14.87 ©. 6.44

DeeOeejYetle F&.Heer.Sme. keÀer ieCevee

¬eÀ. efJeJejCe 2005-2006 2004-2005

meb.

S) F&eqkeÌJeìer Mes³ej OeejkeÀeW keÀes Òeoeve

keÀjves ³eesi³e Je<e& kesÀ 724.63 313.71

efueS Meg× ueeYe keÀjesæ[ keÀjesæ[

yeer) F&eqkeÌJeìer Mes³ejeW keÀer Yeeefjle 48.74 48.74

Deewmele mebK³ee keÀjesæ[ keÀjesæ[

meer) cetueYetle ÒeefleMes³ej Depe&ve (keÀ/Ke) Rs. 14.87 Rs. 6.44

[er) ÒeefleMes³ej DebefkeÀle cetu³e Rs. 10.00 Rs. 10.00

(Ie) DeemLeefiele keÀjeOeeve

(i) DeemLeefiele keÀj Deeefmle³eeW Deewj os³eleeDeeW kesÀ Jenve cetu³eeW Deewj FvekesÀ lelmebyebOeerkeÀj DeeOeej Deewj Heefj®eeueveiele Deûesveerle neefve kesÀ yeer®e GlHeVe DemLee³eerefYeVeleeDeeW kesÀ HeefjCeeceemJeªHe YeefJe<³e kesÀ keÀj kesÀ efueS DeefYe%eele efkeÀS ieSnQ~ DeeefmLeiele keÀj Deeefmle³eeb kesÀJeue efJeJeskeÀ keÀe HetCe& efJe®eej keÀjves kesÀHeM®eele DeefYe%eele efkeÀ³ee ie³ee nw~ DeemLeefiele keÀj Deeefmle³eeb Deewjos³eleeSb keÀj ojeW Deewj keÀj keÀevetveeW keÀe GHe³eesie keÀjles ngS, pees legueve He$ekeÀer leejerKe lekeÀ ÒeoefMe&le ³ee JeemleefJekeÀ ªHe mes ÒeoefMe&le efkeÀS ieS nQ~keÀj ojeW ceW HeefjJele&ve kesÀ keÀejCe DeemLeefiele keÀj Deeefmle³eeW Deewj os³eleeDeeWHej ÒeYeeJe Dee³e efJeJejCeer ceW Yeer DeefYe%eele efkeÀS ieS nQ~

ii) Je<e& kesÀ oewjeve ©. 10.52 keÀjesæ[ (Meg×) (efJeiele Je<e& 8.13 keÀjesæ[ (Meg×)

pecee keÀer ieF& DeemLeefiele keÀj kesÀ mecee³eespeve kesÀ ªHe ceW ueeYe neefve Keeles keÀes

veeces efkeÀS ieS~

iii) DeemLeefiele keÀj Deeefmle³eeW Deewj DeemLeefiele keÀj os³eleeDeeW kesÀ cegK³eIeìkeÀ~

¬eÀ. efJeJejCe 31.03.2006 31.03.2005meb.

DeemLeefiele keÀj Deeefmlei) ÒeeJeOeeve kesÀ efveefceÊe mece³e

Devlej kesÀ keÀejCe 35.07 40.21ii) Dev³e 1.51 21.19

kegÀue DeemLeefiele keÀj Deeefmle 36.58 61.40

DeemLeefiele keÀj os³eleei) Jener cetu³eÛeme Deewj

Dee³ekeÀj cetu³eÛemekesÀ yeer®e mece³e DevlejkesÀ keÀejCe 3.46 26.22

ii) Dev³e 8.46 ——-

kegÀue DeemLeefiele keÀj os³eleeSb 11.92 26.22

Meg× DeemLeefiele keÀj Deeefmle/(os³elee) 24.66 35.18

(©. keÀjesæ[ ceW)


104

(®e) KeC[ efjHeesì& keÀjvee / (e) Segment Reporting

Yeeie-keÀ keÀejesyeej KeC[ / Part A: Business Segments

(©. keÀjesæ[ ceW) / (Rs. in crores)

keÀejesyeej KeC[ Business Segments keÀes<eeieej Dev³e yeQefkebÀie / Other Banking kegÀueTreasury Heefj®eeueve / Operations Total

efJeJejCe Particulars 2005-06 2004-05 2005-06 2004-05 2005-06 2004-05

jepemJe Revenue 2619.87 2731.71 5489.32 4399.35 8109.19 7131.06

HeefjCeece Results 373.04 656.81 1454.19 898.20 1827.23 1555.01

iewj Deeyebefìle Dee³e Unallocated Income

J³e³e keÀes íes[keÀj Net of Expenses -101.29 -120.01

Heefj®eeueveiele ueeYe Operating Profit 1725.94 1435.00

Dee³ekeÀj Income tax 215.75 121.95

MegÜ ueeYe Net Profit

He´eJeOeeve kesÀ HetJe& Before Provisions 1510.19 1313.05

Dev³e peevekeÀejer OTHER INFORMATION

KeC[ Deeefmle³eeb Segment assets 41264.69 34805.94 68738.69 58515.50 110003.38 93321.44

iewj Deeyebefìle Deeefmle³eeb Unallocated assets 2418.04 1780.70

kegÀue Deeefmle³eeb Total assets 112421.42 95102.14

KeC[ os³eleebS Segment liabilities 38904.95 32932.73 64811.29 55095.91 103716.24 88028.64

iewj Deeyebefìle os³eleebS Unallocated liabilities 3574.55 2484.91

kegÀue os³eleebS Total liabilities 107290.79 90513.55

³eneB yeQkeÀ Üeje keÀesF& cenlJeHetCe& DeJeefMeä Heefj®eeueve veneR efkeÀS ieS nQ~ / There are no significant residual operations carried on by the bank.

Yeeie-Ke YeewieesefuekeÀ KeC[ / Part B: Geographical Segments (Rs. in crores)

mJeosMeer Debleje&<ì^er³e kegÀueDomestic International Total

efJeJejCe Particulars 2005-06 2004-05 2005-06 2004-05 2005-06 2004-05

jepemJe Revenue 6878.31 6149.93 1230.88 981.13 8109.19 7131.06

Deeefmle³eeb Assets 88575.09 73356.36 21428.29 19965.08 110003.38 93321.44

uesKeebkeÀve ceevekeÀ 17 kesÀ DevegHeeueve Hej Yeejleer³e efjpeJe& yeQkeÀ kesÀ efoMeeefveoxMeeW kesÀ DevegªHe yeQkeÀ ves keÀejesyeej KeC[ keÀes ÒeeLeefcekeÀ efjHeesefì¥ie KeC[ Deewj YeewieesefuekeÀ KeC[ keÀes ieewCe KeC[kesÀ ªHe ceW efveOee&efjle efkeÀ³ee nQThe Bank has recognised Business Segments as Primary reporting segment and Geographical Segments as Secondary segment inline with RBI

guidelines in compliance with Accounting Standard 17.

Primary Segments : Business Segments

a) Treasury Operations: Includes dealing in Government andother Securities, Money Market Operations and ForexOperations.

b) Other Banking Operations: Consists of Corporate Banking,Retail Banking, Personal and Commercial Banking, CashManagement Services, Deposits and allied services such asCredit Cards and Depository Participant Services.

Pricing of Inter-segmental transfers

Other Banking Operations ( BO ): BO is a Primary resourcemobilising unit and Treasury Segment compensates the former forfunds lent by BO to it taking into consideration the average cost ofdeposits incurred by BO.

ÒeeLeefcekeÀ KeC[ ë keÀejesyeej KeC[

keÀ) keÀes<eeieej Heefj®eeueve ë FmeceW mejkeÀejer Deewj Dev³e ÒeefleYetefle³eeb cegêe yeepeej

Heefj®eeueve Deewj HeÀesjskeÌme Heefj®eeueve Meeefceue nw~

Ke) Dev³e yeQeEkeÀie Heefj®eeueve ë FmeceW efveiece yeQeEkeÀie, Kegoje Jew³eeqkeÌlekeÀ Deewj

JeeefCeeqp³ekeÀ yeQeEkeÀie, vekeÀoer ÒeyebOeve mesJeeSb, peceejeefMe Deewj mecye× mesJeeSb

pewmes ¬esÀef[ì keÀes[& Deewj efve#esHeieej menYeeieer mesJeeSb Meeefceue nQ~

Deblej-KeC[er³e DelejCeeW keÀe cetue efveOee&jCe

Dev³e yeQeEkeÀie Heefj®eeuele (yeerDees) ë yeerDees SkeÀ ÒeeLeefcekeÀ mebmeeOeve mebûeCekeÀlee&

FkeÀeF& nw Deewj keÀes<eeieej KeC[ yeer Deew Üeje GHeeefpe&le peceejeefMe³eeW keÀer Deewmele

ueeiele keÀes O³eeve ceW jKeles ngS yeer Dees Üeje GOeej oer ie³eer efveefOe³eeW keÀer #eefleHetefle&

keÀjlee nw~


105

Allocation of costs

a) Expenses directly attributed to particular segment are allocated

to the relative segment

b) Expenses not directly attributable to specific segment are

allocated in proportion to number of employees / business

managed.

Secondary Segments : Geographical Segments

a) Domestic Operations

b) International Operations

(Rs. in crore)

01.04.2005 Hej Je<e& kesÀ oewjeve efkeÀS HeefleJeefle&le mecee³eesefpele 31.03.2006 Hej

HeejbefYekeÀ efmLeefle ieS HeeJeOeeve HeeJeOeeve Debeflece efmLeefle

efJeJejCe Particulars Opening as on Provision made Provisions Reversed/ Closing as on

01.04.2005 during the year Adjusted 31.03.2006

ceevekeÀ Deeefmle³eeW Provision for

nsleg HeéJeOeeve Standard Assets 136.67 88.51 (1.57) 226.75

DeMeesO³e SJeb mebefoiOe keÀpe& Bad & Doubtful debts 1415.22 535.61 619.14 1331.69

efveJesMe Investments 204.93 119.96 28.65 296.24

keÀjeOeeve Taxation 1092.99 201.26 (43.43) 1337.68

Dev³e HeéJeOeeve Other Provisions 399.67 82.69 311.16 171.20

(f) Details of movement in provisions in accordance withAccounting Standard 29

ueeiele keÀe Deeyebìve

keÀ) efJeMes<e KeC[ keÀes meerOes Òeoeve efkeÀS ieS J³e³eeW keÀes mebyebefOele KeC[ ceW Deebyeefìle

efkeÀ³ee ie³ee nw~

Ke) efJeMes<e KeC[ keÀes meerOes Òeoeve veneR efkeÀS ieS J³e³eeW keÀes keÀce&®eeefj³eeW/meb®eeefuele

keÀejesyeej keÀer mebK³ee kesÀ DevegHeele ceW Deeyebefìle efkeÀS ieS nQ~

ieewCe Keb[ ë YeewieesefuekeÀ Keb[

keÀ) mJeosMeer Heefj®eeueve

Ke) Deblejje&äêr³e Heefj®eeueve

(SHeÀ)uesKee ceevekeÀ 29 kesÀ Devegmeej HeéJeOeeve keÀer DeeJeepeener kesÀ y³eessjs


106

7. vekeÀoer He´Jeen keÀe efJeJejCe / Cash Flow Statement(©. keÀjesæ[ ceW) / (Rs. in crores)

Je<ee&vle Je<ee&vleefJeJejCe Particulars Year ended Year ended

31-03-2006 31-03-2005

keÀ) Heefj®eeueveiele ieefleefJeefOe³eeW mes vekeÀoer HeJeen

keÀjeOeeve keÀs Henues µegOo ueeYe

efvecveefueefKele kesÀ efueS mecee³eespeve

De®eue mebHeefÊe³eeW Hej cetu³e-Ûeme

mJewef®íkeÀ mesJeeefveJe=efÊe kesÀ J³e³e keÀe HeefjµeesOeve

efveJesµe Hej cetu³e-Ûeme

DeµeesO³e $eÝCe yeÆe Keelee/Sve.Heer.S

kesÀ efueS HeéJeOeeve

ceevekeÀ Deeefmle³eeW kesÀ efueS HeéJeOeeve

Dev³e ceoeW kesÀ efueS HeéJeOeeve

ieewCe yeeB[dme Hej Yegieleeve/HeéJeOeeve

efvecveefueefKele kesÀ efueS mecee³eespeve

pecee jeefµe³eeW ceW yeæ{/(Ieì)

GOeej ces yeæ{/(Ieì)

Dev³e os³eleeDeeW Deewj HeéJeOeeveeW ceW yeæ{/(Ieì)

efveJesµe ceW (yeæ{)/(Ieì)

Deefieće ceW (yeæ{)/(Ieì)

Dev³e Deeefmle³eeW ceW (yeæ{)/Ieì

He´l³e#e keÀj Yegieleeve / JeeHemeer

Heefj®eeueveiele ieefleefJeefOe³eeW mes efveJeue

vekeÀoer HeJeeme (keÀ)

Ke. efveJesµe ieefleefJeefOe³eeW mes vekeÀoer HeJeen

De®eue mecHeefÊe keÀer Kejero

mene³ekeÀ kebÀHeefve³eeW mes HeéHle ueeYeebµe

efveJesµe ieefleefJeefOe³eeW mes efveJeue

vekeÀoer HeJeen (Ke)

A. Cash Flow from Operating Activities:

Net Profit before taxes 940.39 435.66

Adjustments for:

Depreciation on Fixed Assets 96.82 98.98

Amortisation of Expenses on VRS - 135.17

Depreciation on Investment 91.32 494.18

Bad-debts Written off / Provisions for NPAs 535.62 351.23

Provision for Standard Assets 88.51 30.51

Provision for Other Items 70.12 123.41

Payment / Provision for Interest on Subordinated Bonds 255.58 174.92

Adjustments for:

Increase /( Decrease) in Deposits 15108.84 7339.13

Increase /( Decrease) in Borrowings (68.04) 1920.48

Increase / (Decrease)in Other Liabilities and Provisions 509.71 353.05

(Increase) / Decrease in Investments (3186.75) (1533.92)

(Increase )/ Decrease in Advances (10180.48) (10507.92)

(Increase) / Decrease in Other Assets (207.46) 91.50

Direct Taxes (Paid)/Refund (650.55) (295.25)

Net Cash Flow from Operating Activities (A) 3403.63 (788.87)

B. Cash Flow from Investing Activities :

Purchase of Fixed Assets (100.85) (123.27)

Impact of Consolidation of Subsidiaries (21.94) 27.05

Net Cash Flow from

Investing Activities (B) (122.79) (96.22)


107

C. Cash Flow from Financing Activities:

Share Capital 0.00 0.00

Share Premium 0.00 0.00

Subordinate Bonds 950.00 138.50

Dividend (Interim & Final) paid (55.58) (110.10)

Interest Paid on Subordinate Bonds (net) (255.58) (174.92)

Net Cash Flow from

Financing Activities ( C ) 638.84 (146.52)

Net Increase in Cash &

Cash Equivalents 3919.68 (1031.61)

(A) + (B) + (C)

Opening Cash and Cash

Equivalents as at April, 1 7526.34 8557.95

Cash and Cash Equivalents as at March, 31. 11446.02 7526.34

ie) efJeÊe Hees<eCe ieefleefJeefOe³eeW mes vekeÀoer HeJeen

µes³ej Hetbpeer

µes³ej He´erefce³ece

ieewCe yeeB[

He´oÊe ueeYeebµe (Debleefjce SJeb Debeflece)

ieewCe yeeB[ Hej y³eepe keÀe Yegieleeve (µeg×)

e fJeÊe Hee s <eCe iee f lee fJee fOe³ee W me s e f veJeue

vekeÀoer HeJeen (ie)

vekeÀo Deewj vekeÀoer mecelegu³e ceW

efveJeue yeæ{le

(keÀ)•(Ke)•(ie)

1 DeHewue keÀes vekeÀoer SJeb vekeÀoer

mecelegu³e keÀe DeLeµes<e

31 cee®e& keÀes vekeÀoer SJeb vekeÀoer mecelegu³e

9. Yeejleer³e meveoer uesKeekeÀej mebmLeeve Üeje peejer meeceev³e mHeäerkeÀjCe kesÀ ®eueles cetue Deewj

meneef³eefkeÀ³eesb kesÀ Deueie efJeÊeer³e efJeJejCe ceW mecesefkeÀle efJeÊeer³e efJeJejCeeW kesÀ mel³e Gef®ele

vepeefjS Hej keÀesF& ÒeYeeJe [eues yeiewj DeefleefjkeÌle meebefJeefOekeÀ peevekeÀejer keÀe Kegueemee

efkeÀ³ee ie³ee nw Deewj Ssmeer ceoeW kesÀ mebyebOe ceW pees FmekeÀer efJe<e³e-Jemleg veneR nw, kesÀ mebyebOe ceW

mecesefkeÀle efJeÊeer³e efJeJejCe He$e ceW Kegueemee vener efkeÀ³ee ie³ee nw.

10. mecetn mebmLeeDeeW kesÀ ®eeuet Je<e& kesÀ DeekeÀæ[eW keÀes peneB keÀner DeeJeM³ekeÀ mecePee

HegveJ³e&JeefmLele / Hegveë lew³eej / Hegveë mecetefnle efkeÀ³ee ie³ee nw ~

11. efHeíues Je<e& kesÀ DeebkeÀæ[eW keÀe peneB DeeJeM³ekeÀ mecePee ie³ee, Hegveme&cetnve/ HegveJ³e&JemLeeHeve

efkeÀ³ee ie³ee nw~

9. Additional Statutory information disclosed in separate financial

statements of the parent and subsidiaries having no bearing on the

true and fair view of the consolidated financial statements and also

the information pertaining to the items which are not material have

not been disclosed in the consolidated financial statements in view

of the general clarification issued by the Institute of Chartered

Accountants of India.

10. Current year’s figures of the group entities have been rearranged/

recast/regrouped wherever necessary.

11. Previous year’s figures have been regrouped/rearranged, wherever

considered necessary.

7. vekeÀoer He´Jeen keÀe efJeJejCe / Cash Flow Statement(©. keÀjesæ[ ceW) / (Rs. in crores)

Je<ee&vle Je<ee&vleefJeJejCe Particulars Year ended Year ended

31-03-2006 31-03-2005


108

yeQkeÀ Dee@]HeÀ Fbef[³ee Deewj FmekeÀer mene³ekeÀ keÀcHeefve³eeW kesÀ mecesefkeÀle efJeÊeer³eefJeJejCe Hej yeQkeÀ Dee@]HeÀ Fbef[³ee kesÀ efveosMekeÀ yees[& keÀes uesKee Hejer#ekeÀeWkeÀer efjHeesì&

1. nceves ³eLee 31 cee®e& 2006 keÀer yeQkeÀ Dee@]HeÀ Fbef[³ee (yeQkeÀ) Deewj FmekeÀer mene³ekeÀ

keÀcHeveer³eeW kesÀ mebueive mecesefkeÀle legueve He$e, mecesefkeÀle ueeYe Deewj neefve Keelee Deewj

FmekesÀ meeLe mebueive Gmeer leejerKe keÀes meceeHle Je<e& kesÀ efueS mecessefkeÀle vekeÀoer He´Jeen

efJeJejCe keÀe Hejer#eCe efkeÀ³ee nw efpemeceW nceejs Üeje uesKee Hejeref#ele yeQkeÀ kesÀ uesKee

Deewj Dev³e uesKee Hejer#ekeÀesb Üeje uesKee Hejeref#ele SkeÀ mene³ekeÀ keÀcHeveer Meeefceue nw ~

2. ³es efJeÊeer³e efJeJejefCe³eeB yeQkeÀ HeýebOeve keÀer efpeccesoejer nw ~ nceejer efpeccesoejer ³en nw keÀer

nceejer uesKee Hejer#ee kesÀ DeeOeej Hej Fve efJeÊeer³e efJeJejefCe³eeW Hej je³e J³ekeÌle keÀjW ~

meeceev³eleë Yeejle ceW mJeerke=Àle uesKee Hejer#ee ceevekeÀeW kesÀ Devegmeej nceves uesKee Hejer#ee

keÀe Dee³eespeve efkeÀ³ee nw ~ Fve ceevekeÀes kesÀ Devegmeej nces uesKee Hejer#ee Fme lejn

Dee³eesefpeve Deewj keÀe³ee¥efvJele keÀjveer ®eeefnS efkeÀ Fme yeejs ceW, DeefYe%eele efJeÊeer³e

efjHeesefì¥ie {eb®es kesÀ Devegmeej lew³eej efkeÀS ieS nw Deewj Fmeces keÀesF& cenlJeHetCe& ieueleer ve

nesleer nes ~ uesKee Hejer#ee ceW Hejer#eCe kesÀ DeeOeej Hej jeefMe mes mebyeefOele HećeeCees keÀer

peeb®e keÀjevee Deewj efJeÊeer³e efJeJejCe ceW Gmes He´keÀì keÀjvee Meeefceue neslee nw ~ uesKee

Hejer#ee ceW, He´³egkeÌle uesKeebkeÀve efme×eblees keÀe cetu³eebkeÀve HeýebOeve Üeje efkeÀS ieS cenlJeHetCe&

Devegceeve leLee meceie´ efJeÊeer³e efJeJejCe keÀer He´mlegefle keÀe cetu³eebkeÀve Meeefceue neslee nw ~

nceW efJeéeeme nw efkeÀ nceejer uesKee Hejer#ee nceejer je³e kesÀ efueS Gef®ele DeeOeej Heóeve

keÀjleer nw ~

3. nceves mene³ekeÀ keÀcHeveer kesÀ efJeÊeer³e efJeJejCeesb keÀer uesKee Hejer#ee veneR keÀer nw efpemekesÀ

efJeÊeer³e efJeJejCe 31 cee®e& 2006 keÀes ª. 10.19 keÀjesæ[ keÀer kegÀue Deefmle³eeb

Deewj Gmeer leejerKe keÀes meceeHle Je<e& kesÀ efueS 8.71 keÀjesæ[ keÀe kegÀue jepemJe

HeóefMe&le keÀjles nw ~ Fve efJeÊeer³e efJeJejefCe³eeW keÀes Dev³e uesKee Hejer#ekeÀeW Üeje uesKee

Heejeref#ele efkeÀ³ee ie³ee nw efpevekeÀer efjHeesì& nceW He´mlegle keÀer ieF& nw Deewj nceejer je³e

peneb lekeÀ efkeÀ mene³ekeÀ keÀcHeefve³eeW kesÀ mebyebOe ceW Meeefceue jeefMe keÀe mebyebOe nw Dev³e

uesKee Hejer#ekeÀeW keÀer efjHeesì& Hej HetCe& ©He mes DeeOeeefjle nw ~

4. nce efjHeesì& keÀjles nQ efkeÀ mecesefkeÀle efJeÊeer³e efJeJejCe yeQkeÀ Üeje Yeejleer³e meveoer

uesKeekeÀej mebmLeeve Üeje peejer uesKeebkeÀve ceevekeÀ (SSme) 21, `` mecesefkeÀle efJeÊeer³e

efJeJejCe” Deewj SSme 23, ’mecesefkeÀle efJeÊeer³e efJeJejefCe³eeW ceW mene³ekeÀ keÀcHeefve³eeW

kesÀ efveJesMees nsleg uesKeebkeÀve” keÀer DeeJeM³ekeÀÌleekesÀ Devegmeej Deewj yeQkeÀ Deewj mecesefkeÀle

efJeÊeer³e efJeJejefCe³eeW ceW Meeefceue mene³ekeÀ keÀcHeefve³eeW Deewj men³eesieer mebmLeeDeeW ceW

Deueie mes uesKee Hejeref#ele efJeÊeer³e efJeJejefCe³eeW kesÀ DeeOeej Hej lew³eej efkeÀS ieS nwb ~

5. nceejer je³e ceW Deewj nceejer mecHetCe& peevekeÀejer leLee nces efoS ieS mHe<ìerkeÀjCe Deewj

yeQkeÀ, uesKes Hej efìHHeCeer kesÀ meeLe Heefþle FmekeÀer mene³ekeÀ keÀcHeveer Deewj men³eesieer

mebmLeeDeeW kesÀ Jew³eefkeÌlekeÀ uesKeeHejeref#ele efJeÊeer³e efJeJejCees Hej He=LekeÀ uesKee Hejer#ee

efjHeesì& kesÀ efJeJes®eve Hej peevekeÀejer efpeme ªHe ceW DeHesef#ele nw Gme ªHe ceW osles nQ Deewj

Auditors’ Report to the Board of Directors of Bank of India on the

Consolidated Financial Statements of Bank of India and its

Subsidiaries.

1. We have examined the attached consolidated Balance Sheet of Bank

of India (“the Bank”) and its subsidiaries as at 31st March 2006, the

consolidated Profit & Loss Account and the consolidated Cash

Flow Statement for the year ended on that date annexed thereto in

which are incorporated the accounts of the Bank audited by us and

one subsidiary audited by other auditors.

2. These financial statements are the responsibility of the Bank’s

management. Our responsibility is to express an opinion on these

financial statements based on our audit. We conducted our audit in

accordance with generally accepted auditing standards in India. These

Standards require that we plan and perform the audit to obtain

reasonable assurance whether the financial statements are prepared

, in all material respects, in accordance with an identified financial

reporting framework and are free of material misstatements. An

audit includes, examining on a test basis, evidence supporting the

amounts and disclosures in the financial statements. An audit also

includes assessing the accounting principles used and significant

estimates made by management, as well as evaluating the overall

financial statements. We believe that our audit provides a reasonable

basis for our opinion.

3. We did not audit the financial statements of the subsidiary whose

financial statements reflect total assets of Rs. 10.19 crores as at 31st

March, 2006 and total revenue of Rs.8.71 crores for the year then

ended. These financial statements have been audited by other auditors

whose reports have been furnished to us and our opinion, insofar as

it relates to the amounts included in respect of the Subsidiaries is

based solely on the report of the other auditors.

4. We report that the consolidated financial statements have been

prepared by the Bank in accordance with the requirements of

Accounting Standard (AS) 21. “Consolidated Financial Statements”

and AS 23, “Accounting for Investments in Associates in

Consolidated Financial Statements” issued by the Institute of

Chartered Accountants of India and on the basis of the separate

audited financial statement of the Bank and its Subsidiaries and

Associates included in the consolidated financial statements.

5. In our opinion and to the best of information and explanation given

to us and on the consideration of the separate audit reports on

individual audited financial statements of the Bank, its Subsidiaries

and Associates read with the Notes on Accounts give the information


109

in the manner required and give a true and fair view in conformity

with the accounting principles generally accepted in India:

i) In the case of the Consolidated Balance Sheet of the consolidated

state of affairs of the Bank, its subsidiaries and associates as

at 31st March, 2006

ii) In the case of the Consolidated Profit and Loss Account of the

consolidated results of operations of the Bank, its subsidiaries

and associates for the year ended on that date ; and

iii) In case of the Consolidated Cash Flow Statement of the

Consolidated cash flow for the year ended on that date.

Yeejle ceW meeceev³eleë mJeerke=Àle uesKeebkeÀve efme×eblees kesÀ Deveg©He efvecceefueefKele keÀe mener

Deewj Gef®ele ef®e$e He´mlegle keÀjles nQ ~

(i) mecesefkeÀle legueve He$e kesÀ mebbyebOe ceW 31 cee®e& 2006 keÀer efmLeefle kesÀ Devegmeej yeQkeÀ

Deewj FmekeÀer mene³ekeÀ keÀcHeefve³eebs kesÀ mecesefkeÀle keÀe³e& keÀer efmLeefle

(ii) mecesefkeÀle ueeYe Je neefve uesKee kesÀ mebyebOe ceW Gmeer leejerKe keÀes meceeHle Je<e& kesÀ

efueS yeQkeÀ Deewj FmekeÀer mene³ekeÀ keÀcHeefve³eeW kesÀ Heefj®eeueveeW kesÀ mecesefkeÀle

HeefjCeece Deewj

(iii) mecesefkeÀle vekeÀoer He´Jeen efJeJejCees kesÀ mebyebOe ceW Gmeer leejerKe keÀes meceeHle Je<e& kesÀ

efueS mecesefkeÀle vekeÀoer He´Jeen ~

ke=Àles Sce. Heer. ef®eleues SC[ kebÀHeveer ke=Àles yeer. Deej. ceensMJejer SC[ kebÀHeveer ke=Àles þekegÀj, JewÐeveeLe De³³ej SC[ kebÀHeveer

meveoer uesKeekeÀej meveoer uesKeekeÀej meveoer uesKeekeÀej

For M. P. Chitale & Co. For B. R. Maheswari & Co., For Thakur, Vaidyanath Aiyar & CoChartered Accountants Chartered Accountants Chartered Accountants

(Guneme ef®eleues) (DeMeeskeÀ ie[esefo³ee) (meer.Jeer. HejcesMJej)

Yeeieeroej meom³elee ke´À. 32292 Yeeieeroej meom³elee ke´À. 83863 Yeeieeroej meom³elee ke´À. 11541( Ulhas Chitale ) ( Ashok Gadodia ) ( C. V. Parameswar)

PartnerMembership No.32292 PartnerMembership No. 83863 PartnerMembership No. 11541

ke=Àles ye´cn³³ee SC[ kebÀHeveer ke=Àles kesÀ. Sve. iegìiegefì³ee SC[ kebÀHeveer ke=Àles efce$ee kegbÀ[tb SC[ yeemet

meveoer uesKeekeÀej meveoer uesKeekeÀej meveoer uesKeekeÀej

For Brahmaya & Co For K.N.Gutgutia & Co For Mitra Kundu & BasuChartered Accountants Chartered Accountants Chartered Accountants

(Heer. Sme. kegÀceej) (yeer. kesÀ. Yegefle³ee) (Heer. kesÀ. HeesÎej)

Yeeieeroej meom³elee ke´À. 15590 Yeeieeroej meom³elee ke´À. 59363 Yeeieeroej meom³elee ke´À. 51063( P. S. Kumar) ( B.K.Bhutia) ( P.K. Podder )

PartnerMembership No. 15590 PartnerMembership No. 59363 PartnerMembership No.51063

Place : Mumbai

Date : 30th May, 2006

mLeeve cegbyeF&

efoveebkeÀ ë 30 ceF&, 2006

yeQkeÀ keÀe mecesefkeÀle efJeÊeer³e efJeJejCe · yeQkeÀ Dee@]HeÀ Fbef[³ee BANK OF INDIA |...

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