Bank of baroda

ANNEXURE – A-VI
Adjustments not carried out in the statement of Profit & Loss and Assets & Liabilities:
A.
Accounting Policies:
1.
Reserve Bank of India (RBI) has issued various guidelines on income recognition, asset classification and provisioning
in respect of non performing advances, valuation of/depreciation on investments, depreciation on computers, charging
premium / discount on Money Market Swaps. The Bank has carried out necessary amendments in its accounting
policies in the relevant years to be in conformity with the said RBI guidelines.
2.
During the half-year ended September 30, 2005, the Bank has revised its Accounting Policy on Accounting for
Effect on Changes in Foreign Currencies (AS 11) issued by the Institute of Chartered Accountants of India (ICAI)
and the net loss of Rs. 31.80 million has been accounted in the books as loss on revaluation of foreign currency
assets and liabilities. However, the effect of this change in accounting policy is not given in the previous years, as
the same, is not ascertained.
B.
Auditors’ Qualifications:
1.
The effect of adjustments arising from reconciliation / balancing / clearance of outstanding entries, in Head Office
Account, inter office transactions, Branch Adjustment, drafts paid, drafts payable, clearing accounts, suspense and
sundry accounts, capital expenditure, fixed assets, commission on insurance and Government business, credit card
receivables, outstanding transactions between the Bank and other banks, including foreign banks, agencies and
financial institutions, and differences between General and Subsidiary ledgers could not be carried out, the
consequential impact of which is not ascertainable.
2.
The Bank has adopted FEDAI guidelines in respect of translation of financial statements of foreign branches, items
of income, expenditure, assets and liabilities in foreign currency for the years ended March 31, 2001, 2002, 2003,
2004 and 2005, which is not in accordance with AS-11 (Accounting for the effects of changes in foreign currency
rates) issued by the ICAI, as complying with FEDAI guidelines was mandatory as per RBI guidelines.