Professional Documents
Culture Documents
11.05.2013
INTRODUCTION
Users Of Financial Statements Need Information
For Making Economic Decisions.
Wants To Know Liquidity, Solvency And Risks
Related To Assets And Liabilities.
Information In The Nature Of Notes On Accounts
To Financial Statements Helps The Users To Take
Effective Decision.
Summary Of “Significant Accounting Policies”
And “Notes To Accounts” To Be Shown After
Financial Statements.
Notes on Accounts – Accounting
standards
Significant Accounting policies – AS-4
Accounting conventions
Revenue Recognition
Expenditure
Staff Retirement Benefit
Fixed Assets
Advances
Investments
Notes on Accounts.
Additional Disclosure – RBI Norms
RBI Circular dated 30.10.2002 – Disclosure of
Information.
To Enhance the transparency, Comprehensive disclosure is
required
Net worth, Investment details, Advances to Directors and
relatives, cost of deposits
Concentration of deposits, Advances, Exposures and NPA
Sector wise NPA
Movement of NPAs
Overseas assets, NPAs and revenue
Separate disclosure for penalty levied by RBI
NOTES ON ACCOUNTS, ACCOUNTING
STANDARDS
MASTER CIRCULAR – DISCLOSURE IN FINANCIAL
STATEMENTS – NOTES TO ACCOUNTS
DBOD.BP.BC NO. 14/21.04.018/2012-13 DATED
02.07.2012
Circular dated 30.10.2002 – Disclosure of Information
for UCB having deposits of Rs. 100 Crore or more.
SIGNIFICANT ACCOUNTING
POLICIES
Accounting Conventions :
Fixed Assets :
Fixed Assets are stated at their historical cost
less depreciation.
Depreciation is provided on Written Down
Value Method and rates of Depreciation are
as under:
Sr. No. Fixed Assets Rate of Depreciation
1 Building 2.5%
2 Furniture & Fixtures 10%
3 Safe Deposit Vault 2.5%
4 Vehicles 15%
5 Electric Equipments 10%
6 Intercom 10%
Sr. No. Fixed Assets Rate of Depreciation
7 Shed 5%
8 Computer 33.33%
9 Dead Stock 10%
10 Air Conditioner 15%
11 D.G. Set Generator 15%
12 C.C.T.V. 15%
Depreciation on Fixed Assets (except computer)
purchased after 30th September is provided at 50% of the
above rates while no depreciation is provided on
sale/deduction from fixed assets during the year.
Depreciation on Computers & UPS is provided in 3
equal installments as per RBI guidelines.
Advances :
Advances are classified into Performing & Non
Performing Assets and provision is made based on
Management assessment, which is not less than the
requirement as per RBI guidelines.
Advances are stated at gross value while provision for
performing & Non Performing Assets required to be
made as per R.B.I. guidelines are shown under the head
Reserve & Other Funds under sub head Bad & Doubtful
Debts Reserve Fund, Special Bad Debts Reserve Fund
and Standard Assets Reserve fund in accordance with
requirement of the applicable statute for disclosure.
Investments :
Investments are categorized as under :
State & Central Government Securities
Approved Trustee Securities
Shares of Co-operative Banks
Other Investments
31.03.2013 31.03.2012
Capital to Risk
Assets Ratio 20.95% 22.50%
Disclosure Note on Advances: