BalanceSheet 2011 - maharashtra gramin bank

SCHEDULE - 17 SIGNIFICANT ACCOUNTING POLICIES 2010-11
01) ACCOUNTING CONVENTION (AS - 1):
The financial statements have been prepared by following the going concern concept
on historical cost basis except as otherwise stated and conform to the statutory
provisions and practices prevailing in the country.
02) FOREIGN EXCHANGE TRANSACTIONS (AS - 11):
There are no transactions involving foreign exchange.
03) INVESTMENTS (AS - 13) :
I. Investments are grouped & shown in Balance-Sheet under the following six groups:
i. Government Securities
ii. Other Approved securities
iii. Shares
iv. Debentures and Bonds
v. Investments in Subsidiaries/ Joint Ventures
vi. Others (Commercial Paper, Units of Mutual Fund etc,)
II.
The Investment portfolio of the Bank is classified into the following three
categories:
i. Held to Maturity
ii. Available for Sale
iii. Held for Trading
Bank decides the category of each investment at the time of acquisition and
classifies the same accordingly. Transfer of securities from one category to another is
done at the least of the acquisition cost/book value/ market value on the date of
transfer.
Valuation of Investments:
a) Government Securities (Central & State) and Treasury Bills:
i) Investments under this category forms part of SLR Investments of the bank as per
RBI Circular no. RPCD/RRB no. BC 37A/ 03.05.34 / 2000-01 / 601 dated December
4, 2000 and are classified as held to maturity. The SLR Investments have been
exempted from marked to market norms for FY 2010-11, 2011-12 & 2012-13 as
per RBI Circular no. RPCD/CO/RRB/BC no. 59/ 03.05.34 / 2010-11 dated April