Schedule to Financial Statements
For the year ended 31 March 2010
40. Impairment of Assets
41. Contingent Liabilities
There is no material impairment of assets and as such there is no provision required in terms of
Accounting Standard 28 ‘Impairment of Assets’ issued by the Institute of the Chartered
Accountants of India.
a Liability on account of forward exchange c o n t r a c t s L i a b i l i t y o n a c c o u n t o f
outstanding Currency and Interest Rate Swap and Option contracts
The Bank enters into foreign exchange contracts, currency optionsswaps, interest
rate optionsswaps and forward rate agreements on its own account and for
customers.
F o r w a r d e x c h a n g e c o n t r a c t s a r e commitments to buy or sell foreign currency
at a future date at the contracted rate. Currency swaps are commitments to
e x c h a n g e c a s h f l o w s b y w a y o f interestprincipal in two currencies, based on
predetermined rates. Interest rate swaps are commitments to exchange fixed and floating
interest rate cash flows. Forward Rate Agreements are agreements to pay or
receive a certain sum based on a differential interest rate on a notional amount for an
agreed period. A foreign currency option is an agreement between two parties in which
one grants to the other the right, but not the obligation, to buy or sell a specified amount
of currency at a specific price within a specified time period or at a specified future
time. The notional principal amounts of
DBS Annual Report 2009 - 2010 49 l
Currency: Indian rupees in thousands
39. Complaints
In terms of RBI Circular DBOD.BP.BC.No.2221.04.0182009-10 dated 1 July 2009,, the details of customer complaints ombudsman awards during the year are as under:
No. of complaints pending at the beginning of the year 1
- No. of complaints received during the year
76 17
No. of complaints redressed during the year 77
16 No. of complaints pending at the end of the year
1 No. of unimplemented awards at the beginning of the year
- -
No. of awards passed by the Banking Ombudsmen during the year -
- No. of awards implemented during the year
- -
No. of Unimplemented Awards at the end of the year -
- Particulars
31 Mar 10 31 Mar 09
Particulars 31 Mar 10
31 Mar 09
foreign exchange derivatives contracts have been recorded as contingent liabilities.
b Guarantees given on behalf of constituents As a part of its banking activities, the Bank
issues guarantees on behalf of its customers. Generally, guarantees represent irrevocable
assurances that the Bank will make payments in the event of the customer failing to fulfill
its financial or performance obligations.
c Acceptances, endorsements and other obligations
These include documentary credit issued by the Bank on behalf of its customers and bills
drawn by the Bank’s customers that are accepted or endorsed by the Bank.
d Other items for which the bank is contingently liable
Other items represent estimated amount of contracts remaining to be executed on
capital account and outstanding inter-bank repo transactions.
l
The Bank did not hold any floating provision in its books as at 31st March 2010 PY: Nil.
l
Deposits as reported in Schedule 3 include deposits kept by customers as margin against
credit facilities INR 1,208,710 thousands PY: INR 1,958,647 thousands.
l
The bank has transferred an amount of INR 117,208 thousands standing in Investment
Reserve account to Balance in Profit and Loss Account.
l
Apart from the above, there was no draw
42. Other Disclosures