DBS Bank Ltd., India Annual Report 2011-12 55
SCHEDULES TO FINANCIAL STATEMENTS
for the year ended 31 March 2012
46. CONTINGENT LIABILITIES
a Liability on account of forward exchange contractsLiability on account of 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. Forward exchange contracts are commitments to buy or sell foreign currency at a future date at the contracted rate. Currency swaps are commitments to exchange cash flows by way of
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 foreign exchange and 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 credits 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 value of
investment traded on or before the Balance Sheet date with a settlement post Balance Sheet date.
47. DISCLOSURE UNDER MICRO, SMALL AND MEDIUM ENTERPRISES DEVELOPMENT ACT, 2006
The Bank has a policy of payment to its vendors based on the agreed credit terms. Consequently, as per Bank’s policy there have been no reported cases of delays in payments in excess of 45 days to Micro, Small and Medium Enterprises or of
interest payments due to delays in such payments, during the year ended 31 March 2012 Previous Year: Nil.
56
SCHEDULES TO FINANCIAL STATEMENTS
for the year ended 31 March 2012
48. OTHER DISCLOSURES
• The Bank did not hold any loating provision in its books as at 31 March 2012 Previous Year: Nil. • Deposits as reported in Schedule 3 include deposits kept by customers as margin against credit facilities ` 5,843,764
thousands Previous Year: ` 548,367 thousands. • The Bank has transferred ` 182,367 thousands Previous Year: Nil to Investment Reserve account from Balance in Profit
and Loss Account. There was no draw down on Reserves during the year ended 31 March 2012 Previous Year: Nil. • The Bank did not issue any Letters of Comfort LoC during the year ended 31 March 2012 Previous Year: Nil.
• The current year Proit and Loss Account includes a credit of ` 107,240 thousands on account of deferred tax asset per taining to prior period, which are required to be disclosed as per Accounting Standard 5, read with RBI guidelines
Previous Year: Nil. • The Bank has not inanced any margin trading activities nor securitised any assets during the current year
Previous Year: Nil. • The Bank has earned an amount of ` 33,594 thousands in respect of Bancassurance business undertaken during the year
ended 31 March 2012 Previous Year: ` 16,925 thousands. • Previous year’s igures have been regroupedrearranged, wherever necessary to conform to the current year’s
presentation. As per our report of even date attached.
For B S R and Co. For DBS Bank Ltd., India
Chartered Accountants
Firm’s Registration No: 101248W
N Sampath Ganesh Sanjiv Bhasin
Yazad Cooper
Partner General M anager and
Chief Financial Officer
Membership No: 042554
Chief Executive Officer
Mumbai Mumbai
16 May 2012 16 May 2012
DBS Bank Ltd., India Annual Report 2011-12 57
BASEL II: PILLAR 3 DISCLOSURES
as at 31 March 2012
1. SCOPE OF APPLICATION
