BalanceSheet 2011 - maharashtra gramin bank

6) REVENUE RECOGNITION (AS - 9) :
i. Income/ Expenditure is accounted on accrual basis except in the following cases:
In the case of Non Performing Assets, income is recognized on cash basis, in
terms of guidelines of the Reserve Bank of India. Where recovery is not adequate
to upgrade the Non Performing Assets accounts by way of regularization, such
recovery is being appropriated towards the principal/ book balance in the first
instance and towards interest dues thereafter. In respect of Non Performing
Investments, the same accounting treatment as above is followed except other
wise agreed.
ii. Interest on securities, which is due and not paid for a period of more than 90
days is recognized on realization basis as per R.B.I. guidelines.
iii.
iv.
Income from sale of Mutual fund products, locker rent etc., are accounted on
cash/ realization basis.
In the case of overdue Term Deposits, interest is provided for @ 3.50% on GL
Products. Many Branches has not provided interest on Over Due Deposits. Hence
effect on profit can not be quantified.
v. In the case of suit filed accounts legal expenses are charged to the profit and loss
account. Similarly at the time of recovery of legal expenses in respect of such suit
filed accounts the amount recovered is accounted as income.
vi.
Commission/ exchange are normally recognized on the date of receipts although
income may relate to transaction period extending beyond the accounting
period.
7) SEGMENT REPORTING (AS - 17):
The Bank has treated the entire operations as a single reportable segment and
secondary segment is not considered necessary due to operations in only one State and
hence no disclosure is required.
8) RELATED PARTY DISCLOSURES (AS - 18) :
In compliance with AS - 18 issued by ICAI and the RBI guidelines details of related
party transactions are disclosed below;
The Bank has considered the following as the related parties for disclosure under
AS- 18 issued by the ICAI.
The key personnel of the Bank and the remuneration paid to them as under –