Bank of baroda

YEAR ENDED 31
st
 MARCH 2003
1.
Prior Period Items:
Profit for the year includes prior period income aggregating Rs. 481.20 million.
2.
Amalgamation of Benaras State Bank Limited:
Benaras State Bank Limited (BSBL), a scheduled commercial bank, has been amalgamated with Bank of Baroda
under the Scheme of amalgamation vide Notification No. FN.15/2000-BOA (ii) dated 19
th
June, 2002, issued by
Government of India, Ministry of Finance, to take effect from 20
th
June, 2002. However, for the purpose of discharge
of liabilities to creditors and depositors of erstwhile BSBL, the prescribed date is fixed as 19
th
July, 2002. As such,
the financial results for the year ended 31
st
March 2003 include the results of erstwhile BSBL branches for the
period 20
th
July 2002 to 31
st
March 2003. The amalgamation has been accounted under the Purchase Method as
per AS-14 ‘Accounting for Amalgamations’. The Bank has taken over the readily realizable assets of erstwhile
BSBL against equivalent amount of liabilities, as per due diligence done by a firm of Chartered Accountants
appointed by Reserve Bank of India. No capital reserve of goodwill has been recognized consequent upon
amalgamation and no consideration has been paid to the shareholders of the erstwhile BSBL. Amounts realized, if
any, on assets taken over on collection basis, will be payable to the depositors / shareholders of erstwhile BSBL as
per the said Scheme.
Pending finalization of the service conditions (including terminal benefits) of the employees of the erstwhile BSBL,
whose services have been continued upon amalgamation with the Bank, provision for the likely liability arising on
finalization thereof has been ascertained. Such liability in respect of terminal benefits comprising Pension, Leave
Encashment and Gratuity has been actuarially valued at Rs. 13.90 million on the basis of EBSBL service conditions
and provided under miscellaneous provisions.