Bank of baroda

11.
Taxes on Income
Income tax is provided according to provisions of the Income Tax Act, 1961.
Deferred tax is provided for, subject to consideration of prudence, based on taxability of income that arises in one
period and which is capable of reversal in one or more subsequent periods. While calculating the deferred tax
assets / liabilities, tax rates and laws that have been enacted or substantively enacted as on the Balance Sheet
date are applied.
12.
Impairment of Assets:
Impairment losses (if any) on fixed assets (including revalued assets) are recognised in accordance with the
Accounting Standard 28 (“Impairment of Assets”) issued in this regard by the Institute of Chartered Accountants of
India.
13.
Contingent Liabilities:
Provision is made in accounts unless no reliable estimate can be made of the amount of obligation or possibility of
future cash flow is remote.

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171
ANNEXURE – A-V
Notes to Adjustments carried out:
1.
Necessary adjustments arising from Auditors qualifications wherever quantifiable and material in respect of previous
years have been carried out while preparing the Statements of Profit & Loss and Assets & Liabilities (Annexure A-
I & A-II).
2.
The contribution to Staff Welfare Fund was appropriated out of profits by the Bank amounting to Rs.100 million,
Rs.82.40 million and Rs.100 million respectively, during the years 2000-01, 2001-02 and 2002-03. Subsequently,
the contribution to Staff Welfare Fund has been debited to the Profit & Loss Account. To ensure uniform accounting,
the accounts of 2000-01, 2001-02 and 2002-03 have been adjusted by debiting Rs.100 million, Rs.82.40 million
and Rs.100 million, respectively, to provisions and contingencies in the Profit and Loss Account.