independent auditor’s report - emirates nbd · 2019. 7. 31. · for khimji kunverji & co llp...

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Emirates NBD Bank (PJSC), India Branch(Scheduled Commercial Bank)

INDEPENDENT AUDITOR’S REPORT ToThe Chief Executive Officer Emirates NBD Bank (PJSC), India Branch

Report on the Audit of the Financial Statements

Opinion

1. WehaveauditedtheaccompanyingfinancialstatementsofEmiratesNBDBank(PJSC),IndiaBranch(‘theBank’),whichcomprisetheBalanceSheetasatMarch31,2019andtheProfitandLossAccountandtheCashFlowStatementfortheyearthenended,andasummaryofsignificantaccountingpoliciesandotherexplanatoryinformation.Inouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventous,theaforesaidfinancialstatementstogetherwithnotesthereongivefullinformationrequiredbytheBankingRegulationAct,1949aswellastheCompaniesAct,2013(‘theAct’),inthemannersorequiredforbankingcompaniesandgivetrueandfairviewinconformitywiththeaccountingprinciplesgenerallyacceptedinIndia:

a. InthecaseoftheBalanceSheet,ofthestateofaffairsoftheBankasatMarch31,2019;

b. IncaseoftheProfitandLossAccount,oftheprofitoftheBankfortheyearendedonthatdate;

c. InthecaseoftheCashFlowStatement,ofthecashflowsoftheBankfortheyearendedonthatdate.

Basis for Opinion

2. WeconductedourauditinaccordancewiththeStandardsonAuditing(‘SAs’)specifiedundersection143(10)oftheAct.OurresponsibilitiesunderthoseStandardsarefurtherdescribedintheAuditor’sResponsibilitiesfortheAuditoftheFinancialStatementssectionofourreport.WeareindependentoftheBankinaccordancewiththeCodeofEthicsissuedbytheInstituteofCharteredAccountantsofIndia(‘ICAI’)togetherwiththeethicalrequirementsthatarerelevanttoourauditofthefinancialstatementsundertheprovisionsoftheActandtheRulesthereunder;andwehavefulfilledourotherethicalresponsibilitiesinaccordancewiththeserequirementsandtheCodeofEthics.Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforouropinion.

Information Other than the Financial Statements and Auditor’s Report Thereon

3. TheBank’smanagementisresponsiblefortheotherinformation.TheotherinformationcomprisestheinformationincludedintheBank’sannualreportandBaselIII-Pillar3disclosures,butdoesnotincludethefinancialstatementsandourauditors’reportthereon.Theotherinformationisexpectedtobemadeavailabletousafterthedateofthisauditor’sreport.Ouropiniononthefinancialstatementsdoesnotcovertheotherinformationandwedonotexpressanyformofassuranceconclusionthereon.

Inconnectionwithourauditofthefinancialstatements,ourresponsibilityistoreadtheotherinformationwhenitbecomesavailableand,indoingso,considerwhethertheotherinformationismateriallyinconsistentwiththefinancialstatementsorourknowledgeobtainedduringthecourseofourauditorotherwiseappearstobemateriallymisstated.

WhenwereadtheotherInformationandifweconcludethatthereisamaterialmisstatementtherein,wearerequiredtocommunicatethemattertothosechargeswithgovernanceasrequiredunderSA720‘TheAuditor’sresponsibilitiesRelatingtootherInformation’

Responsibility of Management for Financial Statements

4. TheBank’smanagementisresponsibleforthemattersstatedinsection134(5)oftheActwithrespecttothepreparationofthesefinancialstatementsthatgiveatrueandfairviewofthefinancialposition,financialperformanceandcashflowsoftheBankinaccordancewiththeaccountingprinciplesgenerallyacceptedinIndia,includingtheAccountingStandardsspecifiedunderprescribedSection133oftheAct,provisionofSection29oftheBankingRegulationAct,1949andthecircularsandguidelinesissuedbyReserveBankofIndia(‘RBI’)fromtimetotime.ThisresponsibilityalsoincludesmaintenanceofadequateaccountingrecordsinaccordancewiththeprovisionsoftheActforsafeguardingoftheassetsoftheBankandforpreventinganddetectingfraudsandotherirregularities;selectionandapplicationofappropriateaccountingpolicies;makingjudgmentsandestimatesthatarereasonableandprudent;design,implementationandmaintenanceofadequateinternalfinancialcontrols,thatwereoperatingeffectivelyforensuringtheaccuracyandcompletenessoftheaccountingrecords,relevanttothepreparationandpresentationofthefinancialstatementsthatgiveatrueandfairviewandarefreefrommaterialmisstatement,whetherduetofraudorerror.Inpreparingthefinancialstatements,managementisresponsibleforassessingtheBank’sabilitytocontinueasagoingconcern,disclosing,asapplicable,mattersrelatedtogoingconcernandusingthegoingconcernbasisofaccountingunlessmanagementeitherintendstoliquidatetheBankortoceaseoperations,orhasnorealisticalternativebuttodoso.

TheBank’smanagementisalsoresponsibleforoverseeingtheBank’sfinancialreportingprocess.

Auditor’s Responsibilities for the Audit of the Financial Statements

5. Ourobjectivesaretoobtainreasonableassuranceaboutwhetherthefinancialstatements,asawholearefreefrommaterialmisstatement,whetherduetofraudorerror,andtoissueanauditor’sreportthatincludesouropinion.Reasonableassuranceisahighlevelofassurance,butisnotaguaranteethatanauditconductedinaccordancewithSAswillalwaysdetectamaterialmisstatementwhenitexists.Misstatementscanarisefromfraudorerrorandareconsideredmaterialif,individuallyorintheaggregate,theycouldreasonablybeexpectedtoinfluencetheeconomicdecisionsofuserstakenonthebasisofthesefinancialstatements.OurauditprocessinaccordancewiththeSAsisnarratedindetailsinAnnexure1tothisreport.

Report on Other Legal and Regulatory Requirements

6. TheBalanceSheetandProfitandLossAccountandtheCashFlowStatementhavebeendrawnupinaccordancewiththeprovisionsofSection29oftheBankingRegulationAct,1949readwithSection133oftheActreadwithRule7oftheCompanies(Accounts)Rules,2014.

7. AsrequiredbySection30(3)oftheBankingRegulationAct,1949,wereportthat:

a. Wehavesoughtandobtainedalltheinformationandexplanationswhichtothebestofourknowledgeandbeliefwerenecessaryforthepurposesofourauditandhavefoundthemtobesatisfactory;.

b. thetransactionsoftheBank,whichhavecometoournoticehavebeenwithinthepowersoftheBank;and

c. Sincethebankishavingonlyonebranch,thequestiononreportingthenumberofbranchesauditedbyusandthemannerofauditthereondoesnotarise.

8. AsrequiredbySection143(3)oftheAct,wereportthat:

a. wehavesoughtandobtainedalltheinformationandexplanationswhichtothebestofourknowledgeandbeliefwerenecessaryforthepurposesofouraudit;

b. inouropinionproperbooksofaccountasrequiredbylawhavebeenkeptbytheBanksofarasitappearsfromourexaminationofthosebooks;exceptthatthebackupofthebooksofaccountsandotherbooksandpapersmaintainedinelectronicmodehasnotbeenmaintainedonserversphysicallylocatedinIndia,Refernote1ofSchedule17ofthefinancialstatementswhereinithasbeenstatedthatthebackupofthebooksofaccountsandotherpapermaintainedinelectronicmodehasbeenmaintainedonserversphysicallylocatedoutsideIndia;

c. theBalanceSheet,theProfitandLossAccountandtheCashFlowStatementdealtwithbythisReportareinagreementwiththebooksofaccount;

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d. inouropinion,theaforesaidfinancialstatementscomplywiththeAccountingStandardsspecifiedunderSection133oftheAct,readwithRule7oftheCompanies(Accounts)Rules,2014insofarastheyapplytotheBank;

e. reportingrequirementpursuanttoprovisionofSection164(2)oftheActisnotapplicableconsideringtheBankisabranchofEmiratesNBDbank(PJSC),DubaiwhichisincorporatedinUnitedArabEmirateswithlimitedliability;

f. WithrespecttotheadequacyoftheinternalfinancialcontrolswithreferencetofinancialstatementsoftheBankandtheoperatingeffectivenessofsuchcontrols,refertoourseparateReportinAnnexure2tothisreport;

g. Reportingrequirementpursuanttosection197oftheActrelatedtomanagerialremunerationisnotapplicableconsideringtheBankisabranchofEmiratesNBDbank(PJSC),DubaiwhichisincorporatedinUnitedArabEmirateswithlimitedliability;

h. WithrespecttotheothermatterstobeincludedintheAuditor’sReportinaccordancewithRule11oftheCompanies(AuditandAuditors)Rules,2014,inouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventous,wereportasunder:

i theBankhasdisclosedtheimpact,ifany,ofpendinglitigationsonitsfinancialpositionsinitsfinancialstatementsasatMarch31,2019;ReferSchedule12andNote1(XX)ofSchedule18tothefinancialstatements;

ii theBankhasmadeadequateprovision,asrequiredundertheapplicablelaworaccountingstandards,formaterialforeseeablelosses,ifany,onlong-termcontractsincludingderivativecontracts-ReferNote2(XVIII)ofSchedule18tothefinancialstatements;

iii theBankiscurrentlynotliabletotransferanyamounttotheInvestorEducationandProtectionFund;

iv thedisclosurerequirementsonholdingsaswellasdealinginspecifiedbanknotesduringtheperiodfromNovember08,2016toDecember30,2016asenvisagedinNotificationG.S.R308(E)datedMarch30,2017isnotapplicabletotheBank.

ForKhimji Kunverji & Co LLP(formerly Khimji Kunverji & Co- FRN 105146W)CharteredAccountants

Vinit K Jain Partner(F-145911)

Mumbai June24,2019

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ANNEXURE 1 TO THE INDEPENDENT AUDITORS’ REPORT (referredtoinpara5titled“Auditor’sResponsibilitiesfortheAuditoftheFinancialStatements”)

AspartofourauditinaccordancewithSAsweexerciseprofessionaljudgmentandmaintainprofessionalscepticismthroughouttheaudit.Wealso:

• Identifyandassesstherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror,todesignandperformauditproceduresresponsivetothoserisks,andobtainauditevidencethatissufficientandappropriatetoprovideabasisforouropinion.Theriskofnotdetectingamaterialmisstatementresultingfromfraudishigherthanforoneresultingfromerror,asfraudmayinvolvecollusion,forgery,intentionalomissions,misrepresentations,ortheoverrideofinternalcontrol.

• Obtainanunderstandingofinternalcontrolrelevanttotheauditinordertodesignauditproceduresthatareappropriateinthecircumstances.Undersection143(3)(i)oftheAct,wearealsoresponsibleforexpressingouropiniononwhethertheBankhasadequateinternalfinancialcontrolssysteminplaceandtheoperatingeffectivenessofsuchcontrols.

• Evaluatetheappropriatenessofaccountingpoliciesusedandthereasonablenessofaccountingestimatesandrelateddisclosuresmadebymanagement.

• Concludeontheappropriatenessofmanagement’suseofthegoingconcernbasisofaccountingand,basedontheauditevidenceobtained,whetheramaterialuncertaintyexistsrelatedtoeventsorconditionsthatmaycastsignificantdoubtontheBank’sabilitytocontinueasagoingconcern.Ifweconcludethatamaterialuncertaintyexists,wearerequiredtodrawattentioninourauditor’sreporttotherelateddisclosuresinthefinancialstatementsor,ifsuchdisclosuresareinadequate,tomodifyouropinion.Ourconclusionsarebasedontheauditevidenceobtaineduptothedateofourauditor’sreport.However,futureeventsorconditionsmaycausetheBanktoceasetocontinueasagoingconcern.

• Evaluate theoverall presentation, structureandcontentof thefinancial statements, including thedisclosures,andwhether thefinancial statements represent theunderlyingtransactionsandeventsinamannerthatachievesfairpresentation.

• Communicatewiththosechargedwithgovernanceregarding,amongothermatters,theplannedscopeandtimingoftheauditandsignificantauditfindings,includinganysignificantdeficiencies in internalcontrol thatweidentifyduringouraudit.Wealsoprovidethosechargedwithgovernancewithastatementthatwehavecompliedwithrelevantethicalrequirementsregardingindependence,andtocommunicatewiththemallrelationshipsandothermattersthatmayreasonablybethoughttobearonourindependence,andwhereapplicable,relatedsafeguards.

ANNEXURE 2 TO THE INDEPENDENT AUDITORS’ REPORT [referredtoinparagraph8(f)under‘ReportonOtherLegalandRegulatoryRequirements’intheIndependentAuditor’sReport]

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Act

WehaveauditedtheinternalfinancialcontrolsoverfinancialreportingofEmirates NBD bank (PJSC), India Branch (“theBank”)asatMarch31,2019inconjunctionwithourauditofthefinancialstatementsoftheBankfortheyearendedonthatdate.

Management’s Responsibility for Internal Financial Controls

TheBank’smanagementisresponsibleforestablishingandmaintaininginternalfinancialcontrolsbasedontheinternalcontroloverfinancialreportingcriteriaestablishedbytheBankconsideringtheessentialcomponentsofinternalcontrolstatedintheGuidanceNoteonAuditofInternalFinancialControlsoverFinancialReportingissuedbytheInstituteofCharteredAccountantsofIndia(“ICAI”).Theseresponsibilitiesincludethedesign,implementationandmaintenanceofadequateinternalfinancialcontrolsthatwereoperatingeffectivelyforensuringtheorderlyandefficientconductofitsbusiness,includingadherencetotheBank’spolicies,thesafeguardingofitsassets,thepreventionanddetectionoffraudsanderrors,theaccuracyandcompletenessoftheaccountingrecords,andthetimelypreparationofreliablefinancialinformation,asrequiredundertheAct.

Auditors’ Responsibility

OurresponsibilityistoexpressanopinionontheBank’sinternalfinancialcontrolswithreferencetofinancialstatementsbasedonouraudit.WeconductedourauditinaccordancewiththeGuidanceNoteonAuditofInternalFinancialControlsOverFinancialReporting(the“GuidanceNote”)andtheStandardsonAuditing,issuedbyICAIanddeemedtobeprescribedundersection143(10)oftheAct,totheextentapplicabletoanauditofinternalfinancialcontrols,bothissuedbytheICAI.ThoseStandardsandtheGuidanceNoterequirethatwecomplywithethicalrequirementsandplanandperformtheaudittoobtainreasonableassuranceaboutwhetheradequateinternalfinancialcontrolsoverfinancialreportingwasestablishedandmaintainedandifsuchcontrolsoperatedeffectivelyinallmaterialrespects.

Ourauditinvolvesperformingprocedurestoobtainauditevidenceabouttheadequacyoftheinternalfinancialcontrolssystemoverfinancialreportingandtheiroperatingeffectiveness.Ourauditofinternalfinancialcontrolsoverfinancialreportingincludedobtaininganunderstandingofinternalfinancialcontrolsoverfinancialreporting,assessingtheriskthatamaterialweaknessexists,andtestingandevaluatingthedesignandoperatingeffectivenessofinternalcontrolbasedontheassessedrisk.Theproceduresselecteddependontheauditor’sjudgment,includingtheassessmentoftherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror.

WebelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinionontheBank’sinternalfinancialcontrolssystemoverfinancialreporting.

Meaning of Internal Financial Controls Over Financial Reporting

ABank’sinternalfinancialcontroloverfinancialreportingisaprocessdesignedtoprovidereasonableassuranceregardingthereliabilityoffinancialreportingandthepreparationoffinancialstatementsforexternalpurposesinaccordancewithgenerallyacceptedaccountingprinciples.ABank’sinternalfinancialcontroloverfinancialreportingincludesthosepoliciesandproceduresthat:

(a) pertaintothemaintenanceofrecordsthat,inreasonabledetail,accuratelyandfairlyreflectthetransactionsanddispositionsoftheassetsoftheBank;

(b) providereasonableassurancethattransactionsarerecordedasnecessarytopermitpreparationoffinancialstatementsinaccordancewithgenerallyacceptedaccountingprinciples,andthatreceiptsandexpendituresoftheBankarebeingmadeonlyinaccordancewithauthorisationsofmanagementanddirectorsoftheBank;and

(c) providereasonableassuranceregardingpreventionortimelydetectionofunauthorisedacquisition,use,ordispositionoftheBank’sassetsthatcouldhaveamaterialeffectonthefinancialstatements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Becauseof the inherent limitationsof internalfinancialcontrolsoverfinancial reporting, includingthepossibilityofcollusionor impropermanagementoverrideofcontrols,materialmisstatementsduetoerrororfraudmayoccurandnotbedetected.Also,projectionsofanyevaluationoftheinternalfinancialcontrolsoverfinancialreportingtofutureperiodsaresubjecttotheriskthattheinternalfinancialcontroloverfinancialreportingmaybecomeinadequatebecauseofchangesinconditions,orthatthedegreeofcompliancewiththepoliciesorproceduresmaydeteriorate.

Opinion

Inouropinion,theBankhas,inallmaterialrespects,anadequateinternalfinancialcontrolssystemwithreferencetofinancialstatementsandsuchinternalfinancialcontrolswithreferencetofinancialstatementswereoperatingeffectivelyasatMarch31,2019,basedontheinternalcontroloverfinancialreportingcriteriaestablishedbytheBankconsideringtheessentialcomponentsofinternalcontrolstatedintheGuidanceNoteonAuditofInternalFinancialControlsOverFinancialReportingissuedbytheICAIexceptthatthebackupofthebooksofaccountsandotherbooksandpapersmaintainedinelectronicmodehasnotbeenmaintainedonserversphysicallylocatedinIndia,Refernote1ofSchedule17ofthefinancialstatementswhereinithasbeenstatedthatthebackupofthebooksofaccountsandotherpapermaintainedinelectronicmodehasbeenmaintainedonserversphysicallylocatedoutsideIndia.

ForKhimji Kunverji & Co LLP(formerly Khimji Kunverji & Co- FRN 105146W)CharteredAccountants

Vinit K Jain Partner(F-145911)

Mumbai June24,2019

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BALANCE SHEET AS ON 31 MARCH 2019

Particulars Schedule As at 31 March 2019 (INR

‘000s)

As at 31 March 2018 (INR

‘000s)

CAPITAL & LIABILITIES

Capital 1 6,861,976 6,540,758

Reservesandsurplus 2 (105,490) (171,707)

Deposits 3 5,047,982 913,461

Borrowings 4 5,314,530 2,967,303

OtherLiabilitiesandProvisions 5 284,529 320,440

Total 17,403,527 10,570,255

ASSETS

CashandBalanceswithReserveBankofIndia

6 244,100 174,013

BalanceswithBanksandMoneyatCallandshortnotice

7 955,429 1,006,573

Investments 8 6,585,623 2,966,988

Advances 9 8,892,205 5,782,725

Fixedassets 10 359,227 329,597

Otherassets 11 366,943 310,359

DebitBalanceinProfit&LossAccount

Total 17,403,527 10,570,255

ContingentLiabilities 12 8,712,508 7,880,755

BillsforCollection 703,058 -

SignificantAccountingPoliciesandNotestoAccounts

17&18

SchedulesreferredtohereinformanintegralpartoftheFinancialStatements

PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 MARCH 2019Particulars Schedule For the Year

ended 31 March 2019

(INR ‘000s)

For the Year ended 31 March

2018 (INR ‘000s)

I. INCOMEInterestEarned 13 933,423 322,141

OtherIncome 14 78,128 5,572

Total 1,011,551 327,713 II. EXPENDITUREInterestExpended 15 358,174 15,033

OperatingExpenses 16 584,155 451,450

ProvisionsandContingencies 18.1.XX 3,005 32,937

Total 945,334 499,420 III. PROFIT / (LOSS)Netprofit/(Loss)fortheyear 66,217 (171,707)

Profit/(Loss)broughtforward (171,707) -

Total (105,490) (171,707)IV. APPROPRIATIONSTransfertoStatutoryReserves 16,555 -

TransfertoCapitalReserves - -

TransfertoInvestmentReserveAccount

5,445 -

TransfertoInvestmentFluctuationReserve

25,000

RemittancetoH.O.duringtheyear - -

TransfertosurplusretainedforCapitalAdequacy(CRAR)

- -

Balance carried over to Balance Sheet

(152,490) (171,707)

Total (105,490) (171,707)

SchedulesreferredtohereinformanintegralpartoftheFinancialStatements

AsperourattachedReportofevendate.

ForKhimji Kunverji & Co. LLP(formerly Khimji Kunverji & Co FRN : 105146W)CharteredAccountants

ForEmirates NBD Bank (PJSC), IndiaBranch

Vinit K JainPartner(F-145911)

Sharad AgarwalChiefExecutiveOfficer,India

Place:MumbaiDate:24June2019

Place:MumbaiDate:24June2019

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CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2019

ParticularsFor the year ended

31 March 2019 INR (000’s)

For the year ended 31 March 2018

INR (000’s)Cash Flow from Operating Activities

NetProfit/(Loss)asperProfit&LossStatement 66,217 (171,707)

Add:IncomeTaxProvision -

Add:DeferredTax(Asset)/Liability (6,197) 2,546

NetProfitbeforetaxationandextraordinaryitems 60,020 (169,161)

Adjustments for:

DepreciationonFixedAssets 114,832 70,609

(Profit)/LossonsaleofFixedAssets - 4,063

Additions/(Write-back)ofprovisionforStandardAssets 15,345 23,131

ProvisionforCountryRisk 1,117 -

ProvisionforUnhedgedForeignCurrencyExposure - -

OtherLosses/write-offs/HeadOfficeProjectOpex 15,015

ProvisiononInvestments (7,260) 7,260

Operating profit before working capital changes 199,069 (64,098)

(Increase)/DecreaseinInvestments (3,611,375) (2,966,988)

(Increase)/DecreaseinAdvances (3,109,480) (5,782,725)

(Increase)/DecreaseinOtherAssets(Note1) (49,632) (310,359)

Increase/(Decrease)inDeposits 4,134,521 913,461

Increase/(Decrease)inOtherLiabilities&Provisions 137,687 287,502

Incometaxes(paid)/received (3,300) -

Net Cash Flow generated from / (used in) Operating Activities A (2,302,509) (7,923,206)

Cash flows from investing activities

Purchaseoffixedassets(Note1) (27,767) (396,055)

Proceedsfromsaleoffixedassets - 495

(Increase)/DecreaseinCapitalworkinprogress 1,991 (8,710)

Net Cash Flow generated from / (used in) Investing Activities B (25,776) (404,269)

Cash flows from financing activities

CapitalIntroduced(Note1) - 6,540,758

Increase/(Decrease)inBorrowingsotherthanSub-ordinateddebt 2,347,228 2,967,303

Net Cash Flow generated from / (used in) Financing Activities C 2,347,228 9,508,061

Net increase/ (decrease) in cash and cash equivalents (A + B +C) 18,943 1,180,586

Cash&Cashequivalentsatthebeginningoftheyear 1,180,586 -

CashandCashequivalentsattheendoftheyear(Note1) 1,199,529 1,180,586

Notes:CashandCashEquivalentsrepresent

CashandBalanceswithReserveBankofIndia(AsperSchedule6) 244,100 174,013

BalanceswithBanks&MoneyatCallandShortNotice(AsperSchedule7) 955,429 1,006,573

1,199,529 1,180,586

Note 1

Details of Balances transferred from India Representative Office INRin‘000s-31-03-2018

Capital 103,658

FixedAssets(netofaccumulateddepreciation) 10,032

OtherAssets 76,265

Cash&BankBalances 17,361


ForKhimji Kunverji & Co. LLP(formerly Khimji Kunverji & Co- FRN : 105146W)CharteredAccountants




Place:MumbaiDate:24Jun2019


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SCHEDULES FORMING PART OF FINANCIAL STATEMENTS AS AT 31 MARCH 2019

As at 31 March 2019 (INR ‘000s)


SCHEDULE 1 - CAPITAL(i) AmountbroughtinbyBankbywayofCapital AsperLastBalanceSheet 6,540,758 - Add:Capitalinfusionduringtheyear 321,218 6,540,758 ReferSchedule18.1.I Total 6,861,976 6,540,758(ii) AmountofdepositkeptwiththeReserveBank

ofIndiaundersection11(2)(b)oftheBankingRegulationAct,1949

3,000 2,000

SCHEDULE 2 - RESERVES & SURPLUS I Statutory Reserve AsperLastBalanceSheet - - Add:TransferfromProfit&LossAccount 16,555 - Total 16,555 -II Investment Reserve Account AsperLastBalanceSheet - - Add:TransferfromProfit&LossAccount 5,445 - Total 5,445 -III Surplus Retained For Capital Adequacy

(CRAR) AsperLastBalanceSheet - - Add:TransferfromProfit&LossAccount - - Total - -IV Investment Fluctuation Reserve AsperLastBalanceSheet - - Add:TransferfromProfit&LossAccount 25,000 - Total 25,000 -V Balance In Profit And Loss Account AsperLastBalanceSheet (171,707) - Add:TransferfromProfit&LossAccount 19,217 (171,707) Total (152,490) (171,707)Grand Total (105,490) (171,707)

SCHEDULE 3 - DEPOSITSI Demand Deposits (i) FromBanks 1,532 556 (ii) FromOthers 880,199 558,563

881,731 559,119 II Saving Bank Deposits 27,135 42,299 III Term Deposits (i) FromBanks 1,500,000 - (ii) FromOthers 2,639,116 312,043

4,139,116 312,043 Total (I + II + III) 5,047,982 913,461 (i) DepositsofBranchesinIndia 5,047,982 913,461 (ii) DepositsofBranchesoutsideIndia - - Total 5,047,982 913,461

SCHEDULE 4 - BORROWINGS I Borrowings in India (i) ReserveBankofIndia 630,000 1,160,000 (ii) OtherBanks - - (ii) Otherinstitutionandagencies 2,929,688 -

3,559,688 1,160,000II Borrowings outside India (i) SubordinatedDebtfromHeadOffice - - (ii) OtherBanks* 1,754,842 1,807,303 *includesBAFborrowingfromHeadOffice 1,754,842 1,807,303 Total ( I + II) 5,314,530 2,967,303 SecuredborrowingsincludedinI&IIabove 3,5,59,688 1,160,000



SCHEDULE 5 - OTHER LIABILITIES AND PROVISIONS

I BillsPayable - -

II Inter-OfficeAdjustment(Net) - -

III InterestAccrued 27,399 6,249

IV ProvisionforStandardAssets - -

IV DeferredTaxLiability(Net) - 2,546

V Others(includingprovisions) 257,130 311,645

Total 284,529 320,440 SCHEDULE 6 - CASH AND BALANCES WITH RESERVE BANK OF INDIA

I Cash in hand 1,552 1,893

(includingforeigncurrencynotes)

II Balances with Reserve Bank of India (i) InCurrentAccount 152,548 172,120

(i) InOtherAccount 90,000 -

Total (I + II) 244,100 174,013 SCHEDULE 7 - BALANCES WITH BANKS & MONEY AT CALL AND SHORT NOTICE

I In India (i) BalanceswithBanks

(a) InCurrentAccount 2,514 16,167

(b) InOtherDepositAccount - 980,000

(ii) MoneyatCallandShortNotice

(a) WithBanks - -

(b) WithOtherInstitutions - -

2,514 996,167

II Outside India (i) InCurrentAccount 53,900 10,406

(ii) InOtherDepositAccounts - -

(iii) MoneyatCallandShortNotice 899,015 -

952,915 10,406

Total (I + II) 955,429 1,006,573 SCHEDULE 8 - INVESTMENTS

I Investments in India in(i) Governmentsecurities(*) 5,043,403 2,386,302

(ii) Otherapprovedsecurities - -

(iii) Shares - -

(iv) Debenturesandbonds - -

(v) Subsidiaries/JointVentures - -

(vi) Others 1,542,220 580,686

6,585,623 2,966,988

II Investments outside India - - Total ( I + II) 6,585,623 2,966,988 III Investments in India GrossValue 6,585,623 2,974,248

Less:-ProvisionfordepreciationonInvestments - (7,260)

NetValue 6,585,623 2,966,988

* includesSecurities keptwithCCILasmargin for securities segmentof bookvalueofINR102,684(P.Y.INR84,124)(in‘000s);forCBLOsegmentbookvalueofINRNIL(P.Y.NIL);forForexsegmentbookvalueofINR26,055(P.Y.INR19,096)(in‘000s)&withRBIundersection11(2)(b)(ii)ofBankingRegulationAct,1949ofFaceValueofINR3,000(in‘000s)(P.Y.NIL)



SCHEDULE 9 - ADVANCESA (i) BillsPurchasedanddiscounted 4,659,763 5,713,725 (ii) Cashcredits,Overdrafts&Loans 3,396,892 - (iii) TermLoans 835,550 69,000 Total 8,892,205 5,782,725

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B (i) Securedbytangibleassets* 1,008,050 69,000 (ii) CoveredbyBank/GovernmentGuarantees - - (iii) Unsecured 7,884,155 5,713,725 *includesadvancesagainstbookdebts Total 8,892,205 5,782,725 C I Advances in India (i) PrioritySector 2,471,920 1,881,102 (ii) PublicSector - - (iii) Banks - - (iv) Others 6,420,285 3,901,623 Sub-total 8,892,205 5,782,725 II AdvancesoutsideIndia - - Sub-total - - Total ( I + II) 8,892,205 5,782,725 SCHEDULE 10 - FIXED ASSETS I Premises (includes Leasehold improvements) Atbookvalue Beginningoftheyear* 72,618 5,347 Additionsduringtheyear - 72,618 Deductionsduringtheyear - (5,347)

72,618 72,618 Depreciationtodate Beginningoftheyear* 10,893 1,534 Additionsduringtheyear 14,524 11,014 Deductionsduringtheyear - (1,655)

25,417 10,893 Total (I) 47,201 61,725 II Other Fixed Assets (includingFurniture&Fixtures) Atbookvalue Beginningoftheyear* 319,453 6,978 Additionsduringtheyear 152,271 313,403 Deductionsduringtheyear - (928)

471,724 319,453 Depreciationtodate Beginningoftheyear* 60,292 759 Additionsduringtheyear 100,309 59,595 Deductionsduringtheyear - (62)

160,601 60,292 Total (II) 311,123 259,162III Capital work in progress 903 8,710 Total (III) 903 8,710Total (I + II + III) 359,227 329,597 *representsassetstransferredfromIndiaRepresentativeofficeforFY2017-18.Cur-rentYearINRNIL.SCHEDULE 11 - OTHER ASSETS I Inter-OfficeAdjustment(Net) - -II Interestaccrued 140,232 118,147III Taxpaidinadvance/taxdeductedatsource(net

ofprovisions)3,300 -

IV DeferredTaxAssets(Net) 3,651 -V Stationeryandstamps - -VI Others 219,760 192,212Total 366,943 310,359 SCHEDULE 12 - CONTINGENT LIABILITIES I Claimsagainstthebanknotacknowledgedas

debts- -

II Liabilityforpartlypaidinvestments - -III Liabilitiesonaccountofoutstandingforward

exchangecontracts3,081,616 6,051,301



IV Liabilitiesonaccountofoutstandingderivativecontracts

- -

V Guaranteesgivenonbehalfofconstituents:

a) InIndia 899,544 1,740,220

b) OutsideIndia 2,682,628 655

VI Acceptances,endorsementsandotherobligations 2,048,720 88,579

VII OtheritemsforwhichtheBankiscontingentlyliable

- -

Total 8,712,508 7,880,755 SCHEDULES FORMING PART OF FINANCIAL STATEMENTS AS AT 31 MARCH

2019SCHEDULE 13 - INTEREST EARNED

I Interest/DiscountonAdvances/Bills 550,338 77,829

II IncomeonInvestment 372,793 83,871

III InterestonbalancewithReserveBankofIndiaandOtherinter-bankfunds

10,292 160,441

IV Others - -

Total 933,423 322,141 SCHEDULE 14 - OTHER INCOME

I Commission,ExchangeandBrokerage 39,641 3,700

II Profit/(Loss)onsaleofInvestments(net) 1,720 -

III Profit/(Loss)onsaleofassets(net) - (4,063)

IV Profit/(Loss)onForeignExchangeTransaction(Net)andderivatives

32,583 4,682

V Incomeearnedbywayofdividends,etc.fromsubsidiaries,companies,jointventureabroad/inIndia

- -

VI MiscellaneousIncome* 4,184 1,253

(*includesprocessingfees)

Total 78,128 5,572 SCHEDULE 15 - INTEREST EXPENDED I InterestonDeposits 69,581 6,831

II InterestonReserveBankofIndia/Inter-Bankbor-rowings

288,593 8,202

III Others - -

Total 358,174 15,033 SCHEDULE 16 - OPERATING EXPENSES I Paymenttoandprovisionsforemployees 238,195 174,397

II Rent,TaxesandLighting 70,404 66,834

III Printingandstationery 692 1,074

IV AdvertisementandPublicity 2,467 8,974

V DepreciationonBank’sProperty 114,832 70,609

VI Directors’Fees,AllowancesandExpenses - -

VII Auditors’FeesandExpenses 1,668 800

VIII LawCharges 1,558 3,370

IX Postage,Telegrams,Telephoneetc. 4,917 4,264

X RepairandMaintenance 10,618 7,227

XI Insurance 3,738 2,751

XII HeadOfficeCharges 70,768 30,096

XIII OtherExpenditure 64,298 81,054

Total 584,155 451,450

SCHEDULE 17: SIGNIFICANT ACCOUNTING POLICIES

1. BACKGROUND

Theaccompanyingfinancialstatementsfortheyearended31March2019comprisetheaccountsoftheIndianBranchofEmiratesNBDBankPJSC(referredtoas‘theBank’)whichisabankingcompanyincorporatedinUAEwithlimitedliability.On17October2016,theBank’sparentcompany,EmiratesNBDBank(PJSC),receivedtheapprovaloftheReserveBankofIndia(‘RBI’)foropeningthemaidenBankBranchwithinoneyeartherefrom.Theassets&liabilitiesofIndiaRepresentativeOfficeweretransferredtotheBankwitheffectfrom1April2017.TheBankhasmaintainedthebooksofaccountsandotherbooksandpapersintheelectronicmode,periodicbackupofwhichhavebeenmaintainedonserversphysically locatedoutsideofIndia.RBIapprovalisinplaceforhostingtheserversfromUAE.

8


2. BASIS OF PREPARATION The financial statements have been prepared in accordancewith requirements

prescribedundertheThirdSchedule(FormAandFormB)oftheBankingRegulationAct,1949.TheaccountingandreportingpoliciesoftheBankusedinthepreparationofthesefinancialstatementsconformtoGenerallyAcceptedAccountingPrinciplesinIndia(IndianGAAP),thecircularsandguidelinesissuedbytheReserveBankofIndia(RBI)fromtimetotime,AccountingStandards(AS)specifiedundersection133oftheCompaniesAct2013,readtogetherwithRule7oftheCompanies(Accounts)Rules2014andCompanies(AccountingStandards)AmendmentRule,2016totheextentapplicableandpracticesgenerallyprevalentinthebankingindustryinIndia.

TheBankfollowsaccrualmethodofaccounting(exceptwhereotherwisestated)andhistoricalcostconvention.

3. USE OF ESTIMATES The preparation of the financial statements requires themanagement tomake

estimatesandassumptionsthataffect thereportedamountsofassets, liabilities,(includingcontingentliabilities)asatthedateofthefinancialstatements,revenueandexpenseduringtheperiod.Althoughtheseestimatesarebaseduponmanagementbestknowledgeofcurrenteventsandactions,actualresultscoulddifferfromthoseestimatesandthesedifferencesarerecognisedprospectivelyincurrentandfutureperiods.

4. SIGNIFICANT ACCOUNTING POLICIES4.1. Investments Classification InaccordancewithRBIguidelines,allinvestmentsareclassifiedintothefollowing

categories,basedontheintentatthetimeofacquisition • HeldtoMaturity(HTM), • AvailableforSale(AFS)and • HeldforTrading(HFT) Under each of these categories the investment portfolio is further classified in

accordancewithRBIdisclosureguidelinesintosub-categoriesof: • Governmentsecurities, • Otherapprovedsecurities, • Shares, • DebenturesandBonds, • Subsidiaries/Jointventuresand • Others. Shifting,ifanybetweenthecategoriesisdoneinaccordancewithRBIguidelines. TheBankfollowssettlementdatemethodforaccountingofitsinvestments. Acquisition Cost Indeterminingthecostofinvestment, • Brokerage,commission,etc.paidatthetimeofpurchase/saleischargedto

theProfit&LossAccount. • Brokenperiodinterestpaidatthetimeofacquisitionofthesecurityischarged

totheProfit&LossAccount. • CostofinvestmentsisbasedonFirstinFirstoutmethod. Valuation • InvestmentsheldundertheAFSandHFTcategoriesaremarkedtomarket

periodically at the price as declared byPrimaryDealersAssociation ofIndiajointlywithFixedIncomeMoneyMarketandDerivativesAssociation(“FIMMDA”).Securitiesarevaluedscrip-wiseanddepreciation/appreciationisaggregatedforeachsub-category.Netdepreciation,ifany,isprovidedforandnetappreciation,ifany,isignored.Netdepreciationrequiredtobeprovidedforinanyonesub-categoryisnotreducedonaccountofnetappreciationinanyothersub-category.Consequenttorevaluation,thebookvalueoftheindividualsecurityisnotchanged.

• Treasury Bills, Certificate of Deposits andCommercial Papers beingdiscountedinstrumentsarevaluedatcarryingcost.

• Investment held under theHTMcategory are carriedat their acquisitioncostandanypremiumoverthefacevalue,paidonacquisition,isamortizedonastraightlinebasisovertheremainingperiodtomaturity.Whereintheopinionofthemanagement,adiminutionotherthantemporaryinthevalueofinvestmentsheldunderHTMhastakenplace,suitableprovisionsaremade.

• TheBankundertakesshortsaletransactionsinCentralGovernmentdatedsecuritiesinaccordancewithRBIguidelines.Theshortpositionismarkedtomarketandloss,ifany,ischargedtotheProfitandLossaccountwhilegain, ifany, is ignored.Profit /Lossonsettlementof theshortposition isrecognizedintheProfitandLossaccount.

• Non-performing investments are identified and depreciation / provisionaremade thereonbasedon theRBI guidelines.Basedonmanagementassessmentofimpairment,theBankmayadditionallycreateprovisionoverandabove theRBIguidelines.Thedepreciation /provisiononsuchnon-performinginvestmentsarenotsetoffagainsttheappreciationinrespectofotherperformingsecurities.Interestonnon-performinginvestmentsisnotrecognizedintheProfitandLossaccountuntilreceived.

Disposal of Investments Profit/Lossonsaleofinvestmentsundertheaforesaidthreecategoriesaretakento

theProfit&Lossaccount.TheprofitfromsaleofinvestmentsunderHTMcategoryifany,netoftaxesandtransferstostatutoryreserveissubsequentlyappropriatedto“CapitalReserve”.

Repurchase (Repo) and Reverse Repurchase Transactions RepoandReverseRepotransactions,includingLiquidityAdjustmentFacility(LAF)

termrepowithRBIandCollateralisedLendingandBorrowingObligations(CBLO)enteredwithClearingCorporation of India Limited (CCIL) are considered ascollateralisedlendingandborrowingtransactions.

Coststhereonareaccountedforas interestexpenseandRevenuesthereonareaccountedasinterestincome.

4.2. Advances Advancesareclassifiedasperformingandnon-performingbasedonextantprudential

normsforincomerecognition,assetclassificationandprovisioningissuedbyRBI. SpecificloanlossprovisionsinrespectofNon-PerformingAdvances(NPAs)ismade

onthebasisoftheprovisioningrequirementsundertheprudentialnormsaslaiddownbytheRBI,andisdeductedfromadvances.Furtheranyadditionalprovisionsarebasedonmanagement’sassessmentofthedegreeofimpairmentofadvances.

TheBankmaintainsgeneralprovisionforstandardassetsincludingcreditexposurescomputedusingtheCurrentExposureMethodoninterestrateandforeignexchangederivativecontractsasstipulatedbyRBI.TheprovisionforstandardassetsisincludedinSchedule5underOtherLiabilities.

Inadditiontotheprovisionsrequiredaccordingtotheassetclassificationstatus,provisioningisdoneforindividualcountryexposures(otherthanforhomecountryexposure). Countries are classified into risk categories as per Export CreditGuaranteeCorporationguidelinesandprovisioningisdoneasperRBIguidelinesinrespectofcountries’wherethenetfundedexposureisonepercentormoreoftheBank’stotalassetsandincludedunder‘OtherLiabilitiesandProvisions’.

ForentitieswithUnhedgedForeignCurrencyExposure(UFCE),provisionismadeinaccordancewiththeguidelinesissuedbyRBI,whichrequirestoascertaintheamountofUFCE,estimate theextentof likely lossandestimate theriskinessofun-hedgedposition.ThisprovisionisclassifiedunderSchedule-5OtherLiabilitiesinthebalancesheet.

4.3. Property, Plant and Equipment (Fixed Assets) and Depreciation Fixed assets are stated at historical cost, net of accumulated depreciation and

accumulatedimpairmentlosses,ifany.Thecostcomprisespurchaseprice,borrowingcostsifcapitalizationcriteriaaremetanddirectlyattributablecostofbringingtheassettoitsworkingconditionfortheintendeduse.Anytradediscountsandrebatesaredeductedinarrivingatthepurchaseprice.

Gainsor lossesarising fromderecognizingoffixedassetsaremeasuredas thedifferencebetweenthenetdisposalproceedsandthecarryingamountoftheassetandarerecognizedintheprofitandlossaccountwhentheassetisderecognized.

Depreciationonfixedassetsisprovidedasperthestraight-linemethodfromthemonthofadditionovertheestimatedusefullivesoftheassetasprescribedunderpart“C”ofscheduleIIoftheCompaniesAct,2013orasestimatedbythemanagement.

Theusefullifemarkedwith*belowaredifferentthanthosespecifiedunderScheduleIIoftheCompaniesAct,2013.ThemanagementbelievesthatusefullifeofFixedAssetcurrentlyconsideredforthepurposeofdepreciationfairlyreflectsitsestimateofusefullivesandresidualvalueoffixedassets.

Themanagementhasestimated,assessedandhasusedthefollowingusefullivestoprovidedepreciationonitsfixedassets:

AssetCategory Usefullivesestimatedbythemanagement(years)

Equipment 5yearsComputersHardware(excludingPC) 4yearsPCAndLaptop 3yearsComputerSoftware 4yearsComputerSoftware–StrategicAssets* 7yearsFurnitureandfixtures 5yearsBankVehicles 3yearsLeaseholdImprovements Overthelifeofthelease

Depreciationonassetssoldduringtheyearischargedtotheprofitandlossaccountuptothemonthimmediatelyprecedingthedateofsale.

Assetsother thanFurnitureandLeasehold Improvementscosting less than INR175,000(AED10,000)arefullychargedtotheProfit&LossAccountintheyearofpurchase.Ifanasset(value<INR175,000)isanintegralpartofalargersystemitwillbecapitalisedasacomponentofthatsystem.ComputerSoftwareotherthanStrategicAssetscostingbetweenINR175,000(AED10,000)andINR6,500,000(AED350,000)havebeendepreciatedat100%intheyearofpurchase.

4.4. Impairment of Assets Thecarryingamountsofassetsarereviewedateachbalancesheetdateifthereis

anyindicationofimpairmentbasedoninternal/externalfactors.Animpairmentloss

9


isrecognizedwheneverthecarryingamountofanassetexceedsitsrecoverableamount.Therecoverableamountisgreaterofasset’snetsellingpriceandvalueinuse.Afterimpairment,depreciationisprovidedontherevisedcarryingamountoftheassetsoveritsremainingusefullife

4.5. Foreign Exchange Transactions MonetaryforeigncurrencyassetsandliabilitiesoutstandingattheBalanceSheet

datearetranslatedtoIndianRupeesatspotratesnotifiedbytheForeignExchangeDealersAssociationofIndia(‘FEDAI’).Allprofits/lossesresultingfromtheyearendrevaluationsarerecognisedintheProfit&LossAccount.

IncomeandexpensesaretranslatedtoIndianRupeesattheratesprevailingonthedateofthetransactions.

OutstandingforwardexchangecontractsandspotexchangecontractsarerevaluedatyearendexchangeratesnotifiedbyFEDAIforspecifiedmaturitiesandatinterpolatedratesforcontractofinterimmaturities.TheresultinggainsorlossesonrevaluationareincludedintheProfit&LossAccountinaccordancewithRBI/FEDAIguidelines.ThenetunrealisedprofitsorlossesarereflectedintheBalanceSheetunderOtherAssetsorOtherLiabilitiesrespectively.

Contingent liabilities on account of foreign exchange contracts, guarantees,acceptances,endorsementsandotherobligationsdenominatedinforeigncurrenciesaredisclosedinIndianRupeesatspotratesofexchangenotifiedbyFEDAIasatthe reporting date.

4.6. Employee benefits Gratuity TheBankhasadefinedbenefitplanforpost-employmentbenefitintheformofgratuity

forallitsemployees.IntermsoftherevisedAccountingStandard-15onRetirementBenefits, theBankhasmadeaprovisiontowardsGratuitybasedonanactuarialvaluationdonebyanindependentactuaryasattheyearend,usingtheProjectedUnitCreditMethod.TheGratuityplan isnot fundedbytheBank.ActuarialgainsandlossesarerecognizedinfullintheperiodinwhichtheyoccurinthestatementofProfitandLoss.

Provident Fund TheBankcontributestoarecognisedprovidentfund(EPFO).Thesecontributions

areaccountedforonanaccrualbasisandrecognisedinProfit&LossAccount. Leave Salary TheBankdoesnothaveapolicyofencashingunavailedleaves,exceptatthetime

of separationof aneligible employee.TheBankmakesaprovision for accruedcompensatedabsencesbasedonactuarialvaluationascarriedoutbyanindependentactuary,usingtheProjectedUnitCreditMethodat theyear-end.Actuarialgains/lossesareimmediatelytakentotheprofitandlossaccountandarenotdeferred.

4.7. Lease Accounting Leaseswherethelessoreffectivelyretainssubstantiallyalltherisksandbenefitsof

ownershipovertheleasetermareclassifiedasoperatingleases.LeasepaymentsforassetstakenonoperatingleasearerecognizedasanexpenseintheProfitandLossAccountonastraight-linebasisovertheleaseterm.

4.8. Revenue recognition Revenueisrecognizedtotheextentthatitisprobablethattheeconomicbenefits

willflowtotheBankandtherevenuecanbereliablymeasured.InterestincomeisrecognizedintheProfit&LossAccountonanaccrualbasis,exceptinthecaseofnon-performingassetswhereitisrecognizeduponrealizationasperRBInorms.

CommissiononGuaranteesandLetterofCreditsissuedandLoanProcessingFeesarerecognisedupfront.Feesforservicesarerecognizedatthetimetheservicesarerenderedandabindingobligationtoreceivethefeeshasarisen.

Incomeondiscountedinstrumentsisrecognizedoverthetenureoftheinstrumentonastraightlinebasis.

4.9. Derivatives TheBankcurrentlyentersintoderivativecontractssuchasforeignexchangecontracts

andforeignexchangeoptions. ThesederivativesarepartoftheTradingbookandrecognisedatfairvalue.The

resultantgain/lossisrecordedintheProfit&LossAccount,whilethecorrespondingunrealisedgain/lossarereflectedintheBalanceSheetundertheheadOtherAssets/OtherLiabilities.ThenotionalvaluesofthesecontractsarerecordedasContingentLiabilities.

TheBankmaintainsaprovisiononstandardderivativeexposureatratesprescribedbyRBI.

AlloutstandingderivativestransactionsarebookedasOffBalanceSheetItemsandMarkedtoMarketattheyearend.

4.10. Taxation Incometaxcomprisescurrenttaxprovisionandthenetchangeinthedeferredtax

assetorliabilityintheyear. Deferred tax assets and liabilities arising on account of timing differences are

recognisedintheProfit&LossAccountandthecumulativeeffectthereofisreflectedin theBalanceSheet.Deferredtaxassetsand liabilitiesaremeasuredusingtheenactedorsubstantiallyenactedtaxratesatthebalancesheetdate.TheeffectondeferredtaxassetsandliabilitiesofachangeintaxratesisrecognisedintheProfit&LossAccountintheperiodofchange.

Deferredtaxassetsarerecognizedonlytotheextentthereisreasonablecertaintythattheassetscanberealizedinfuture,exceptincaseofunabsorbeddepreciationorcarriedforwardlossundertaxationlawswhicharerecognizedonlytotheextentthatthereisvirtualcertaintyofrealizationofsuchassets.

Deferredtaxassetsarereviewedandreassessedateachbalancesheetdateandappropriatelyadjustedtoreflecttheamountthatisreasonably/virtuallycertaintoberealized.

4.11. Cash & Cash equivalents Cashandcashequivalentsincludecashinhand,balanceswithRBI,balanceswith

otherbanks/institutionsandmoneyatcallandshortnotice(includingtheeffectofchangesinexchangeratesoncashandCashequivalentsinforeigncurrency.

4.12. Accounting for Provisions, Contingent Liabilities and Contingent Assets InAccordancewithAS-29relatingtoProvisions,ContingentLiabilitiesandContingent

Assets,theBankrecognizesprovisionsonlywhenithasapresentobligationasaresultofapasteventthatrequiresthatanoutflowofresourcesembodyingeconomicbenefitswillberequiredtosettletheobligationandwhenareliableestimatecanbemadeoftheamountoftheobligation.

Noprovisionisrecognizedandadisclosureofcontingentliabilityismadewhen:

• thereisapossibleobligationthatmayarisefrompasteventsandtheexistenceofwhichwillbeconfirmedonlybytheoccurrenceornon-occurrenceofoneormoreuncertainfutureeventswhicharenotwhollywithinthecontroloftheBank;or

• anypresentobligationthatarisesfrompasteventswhereitisnotprobablethatanoutflowofresourcesembodyingeconomicbenefitswillberequiredtosettletheobligationorareliableestimateoftheamountoftheobligationcannotbemade.Suchobligationsareassessedcontinuallyandonlythatpartoftheobligationforwhichanoutflowofresourcesembodyingeconomicbenefitsisprobableisprovidedforexceptintheextremelyrarecircumstanceswherenoreliableestimatecanbemade.

Provisionsare reviewedateachBalanceSheetdateandadjusted to reflect thecurrentbestestimate.

Contingentassetsarenotrecognisedinthefinancialstatements.

SCHEDULE 18: NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2019

1. StatutoryDisclosuresintermsofRBIguidelinesareasunder:

I. CAPITAL:

Capitalincludesstart-up(assigned)capitalbroughtinasperReserveBankofIndiaMasterCircularRBI/2013-14/77DBOD.No.BAPD.BC.7/22.01.001/2014-15datedJuly1,2014andamounttakenoverfromerstwhileRepresentativeOfficeofEmiratesNBDBank(PJSC)inIndiaon1stApril2017INR103,658(in‘000s).

Duringtheyear2018-19,anamountofINR321,218(in‘000s)wastransferredtoCapitalwhichwastowardsprojectrelatedcapitalexpensespayabletoHeadOffice.

AspertheRBIguidelinesissuedonCapitaltoRiskWeightedAssetsRatio(CRAR),BanksarerequiredtocomputetheircapitalrequirementunderBaselIIIeffectiveJune30,2013.TheCRARasperBASELIIIis63.07%

(INRin‘000s)

Particulars 2018-19 2017-18

CommonEquityTier1Capitalratio(%) 62.39% 125.42%

CapitalAdequacyRatio(TierICapital) 62.39% 125.42%

CapitalAdequacyRatio(TierIICapital) 0.68% 0.47%

CRAR% 63.07% 125.89%

PercentageoftheshareholdingoftheGovernmentofIndiainnationalizedbanks Nil Nil

AmountofEquitycapitalraised(CapitalFundsfromH.O)*

321,218 6,540,758

AmountofadditionalTier1capitalraised;ofwhichPNCPS:PDI:

Nil Nil

AmountofTier2capitalraisedofwhichDebtcapitalinstrument:PreferenceSharecapitalinstrument:[PerpetualCumulativePreferenceShares(PCPS)/RedeemableNon-CumulativePreferenceShares(RNCPS)/RedeemableCumulativePreferenceShares(RCPS)]

Nil Nil

*Duringtheyear2018-19,anamountofINR321,218(‘000s)wastransferredtoCapitalwhichwastowardsprojectrelatedcapitalexpensespayabletoHeadOffice.Outoftheabove,anamountofINR303,060(‘000s)wasconsideredforTier–1inthecurrentyearincompliancewithRBImailboxclarification.

10


II. INVESTMENTS:a. Value of Investments: (INRin‘000s)


GrossvalueofInvestments* 6,585,623 2,974,248Provisionfordepreciation* - (7,260)NetValueofInvestments* 6,585,623 2,966,988

*TheBankhasnotmadeanyinvestmentoutsideIndia

b. Movement of Provisions held towards depreciation on investments: (INRin‘000s)

Particulars 2018-19 2017-18OpeningBalance 7,260 -Add:Provisionsmadeduringtheyear - 7,260Less:Write-off/write-backofexcessprovisionsduringtheyear

7,260 -

ClosingBalance - 7,260III. REPO/REVERSE REPO TRANSACTIONS (Including Liquidity Adjustment

Facility):(INRin‘000s)

ParticularsMinimum

outstanding during the

Year

Maximum outstanding during the

Year

Daily Average


Year

As on 31 March 2019

Securitiessoldunderrepo 497,400 3,432,160 1,972,293 3,432,160i. Government

Securities 497,400 3,432,160 1,972,293 3,432,160

ii. CorporateDebtSecurities

- - - -

Securitiespurchasedunderreverserepo - 734,570 33,084 79,850

i. GovernmentSecurities

- 734,570 33,084 79,850

ii. CorporateDebtSecurities

- - - -

(INRin‘000s)

ParticularsMinimum


Year

Maximum outstanding during the

Year

Daily Average


Year

As on 31 March 2018

Securitiessoldunderrepo - 1,159,600 269,219 1,159,600

i. GovernmentSecurities - 1,159,600 269,219 1,159,600

ii. CorporateDebtSecurities - - - -

Securitiespurchasedunderreverserepo - 2,036,350 555,014 -

i. GovernmentSecurities - 2,036,350 555,014 -

ii. CorporateDebtSecurities - - - -

Theaboveworkingsarebasedonthefacevalueofrepo/reverserepodeals

IV. NON SLR INVESTMENTS PORTFOLIO: a. IssuerCompositionofNonSLRInvestments:-

For31stMarch2019 (INRin‘000s)

Sr. No Issuer Amount

Extent of private

placement

Extent of below

investment grade

securities

Extent of unrated

securities

Extent of unlisted

securities

1 Publicsectorundertakings(PSUs)

- - - - -

2 FinancialInstitutions(FIs)

1,542,220 - - - -

3 Banks - - - - -

4 PrivateCorporate - - - - -

5 Subsidiaries/JointVentures

- - - - -

6 Others - - - - -


Extent of private

placement

Extent of below

investment grade

securities

Extent of unrated

securities

Extent of unlisted

securities

7 Provisionheldtowardsdeprecation

- - - - -

Total 1,542,220 - - - -

For31stMarch2018 (INRin‘000s)


Extent of private

placement

Extent of below

investment grade

securities

Extent of unrated

securities

Extent of unlisted

securities

1 Publicsectorundertakings(PSUs) - - - - -

2 FinancialInstitutions(FIs) 580,686 - - - -

3 Banks - - - - -

4 PrivateCorporate - - - - -

5 Subsidiaries/JointVentures

- - - - -

6 Others - - - - -

7 Provisionheldtowardsdeprecation

- - - - -

Total 580,686 - - - -

b. Non Performing Non SLR Investments: - TherearenoNonPerformingNon-SLRinvestmentsduringtheyearended31March

2019(31March2018–Nil).

V. SALE AND TRANSFERS TO/FROM HTM CATEGORY Therewerenosaleandtransferto/fromHTMcategoryduringtheyearended31

March2019(31March2018–Nil).

VI. DERIVATIVES a. Forward Rate Agreement/Interest rate Swaps outstanding: TheBankhadnotenteredintoForwardRateAgreement/InterestrateSwap

duringtheyearended31March2019(31March2018–Nil).

Natureandtermsofforwardrateagreements:

Outstandingasat31March2019:Nil(31March2018–Nil)

b. Exchange Traded Interest Rate Derivatives TheBankhadnotenteredintoExchangeTradedInterestRateDerivatives


c. Currency Futures Thebankhadnotdealtinexchangetradedcurrencyforwards(futures)during

theyearended31March2019(31March2018–Nil).

d. Disclosure on Risk Exposure in Derivatives: Qualitative Disclosures TheBankdeals in derivatives for balance sheetmanagement purposesand to

enablecustomerstohedgetheircurrencyexposures.TheBankdoesnotcarryoutanyproprietarytradingactivityinderivativesnorhasitenteredintotransactionsforhedgingpurposes.

DerivativesaretransactedbytheGlobalMarketsandTreasury(GM&T)frontofficeteamunderFXdocumentationorInternationalSwapsandDerivativesAssociation(ISDA)MasterAgreements entered intowith counter-parties. Documentation,confirmation and settlement of transactions, risk reporting andmonitoring, andaccountingarecarriedoutbyseparate,independentfunctions.

TheGroup’sextensivegovernanceprocessesareappliedtothemarketrisktakingactivities.Thisgovernanceframeworkincludes,interalia:

• Acomprehensivesetofpolicies,proceduresandlimits;

• Approvalofasetofrisklimitswithappropriatemonitoring,reportingandlimitsexcesses’escalationprocedures;

• Independent valuation of financial instruments in theTradingBook andmeasurementofmarketrisk;and

• Monitoring riskmetrics suchas risk sensitivities, net openpositionsandValue-at-Risk(VaR)limits.

• VaRiscalculatedusingthefollowingparameters:

•Statisticallevelofconfidence:99%

•Holdingperiod:1businessday

•Methodology:FullRevaluation,HistoricalSimulationusingover2yearsofhistoricalmarketdata

11


Creditriskinrespectofderivativefinancialinstrumentsarisesfromthepotentialforacounterpartytodefaultonitscontractualobligationsandismeasuredusingthecurrentexposuremethodologyunderlocalregulation.Allcreditexposureismanagedunderapprovedfacilities.

Quantitative Disclosures (INRin‘000s)

Sr. No Particulars

2018-19 2017-18Currency

Derivatives / Forward Exchange Contracts

Interest Rate

Derivatives

Currency Derivatives / Forward Exchange Contracts

Interest Rate

Derivatives

(i) Derivatives(NotionalPrincipalAmount) 206,338 - - -

a)Forhedging - - - -b)Fortrading 206,338 - - -

(ii) MarkedtoMarketPositions (2,732) - - -

a)Asset(+) - - - -

b)Liability(-) (2,732) - - -(iii) CreditExposure 4,127 - - -(iv) Likelyimpactofone

percentage change ininterestrate(100*PV01)

6 - - -

a) on hedging derivatives - - - -

b) on trading derivatives 6 - - -

(v) MaximumandMinimumof100*PV01observedduringtheyeara)onhedging:Max - - - -Min - - - -b)ontrading:Max 35 - - -Min - - - -

e. Credit default Swaps: TheBankhasnotenteredintoanyCreditDefaultSwaptransactionsduringtheyear

ended31March2019(31March2018–Nil).

VII. ASSETS QUALITY: a. Non-Performing Assets (NPAs) Net NPAs to Net Advances (%) PercentageofNetNPAstoNetAdvancesforFY2018-19is0.00%(FY2017-18

0.00%)

Movement of Gross NPAs (INRin‘000s)


OpeningBalance - -Add:Additionsduringtheyear - -Less:Reductionsduringtheyear - -ClosingBalance - -

Movement of Net NPAs: (INRin‘000s)


OpeningBalance - -

Add:Additionsduringtheyear - -

Less:Reductionsduringtheyear - -

ClosingBalance - - Movement of provisions of NPAs (Excluding Provisions on Standard Assets) (INRin‘000s)


OpeningBalance - -

Add:Provisionsmadeduringtheyear - -

Less:Writebackofexcessprovisions - -

Closingbalance - -

b. Particulars of Accounts Restructured During the year, theBank has not restructured advances given to any

customer.DisclosurespertainingtoStrategicDebtRestructuringScheme,SchemeofSustainableStructuringofStressedAssets(S4A)andResolutionofStressedAssetsarenotapplicable(FY2017-18–Nil).

c. Details of financial assets were sold to Securitisation / Reconstruction Company for Asset Reconstruction

Duringtheyear,theBankhasnottransferred/soldanyassetstoanyAssetReconstructionCompany(FY2017-18–Nil).

d. Details of Non-Performing financial assets purchased/sold Duringtheyear,theBankhasnotpurchasedorsoldNon-PerformingFinancial

Assets(FY2017-18–Nil).

e. Provision towards Standard Assets - (INRin‘000s)


ProvisionstowardsStandardAssets 38,476 23,131

f. Provision Coverage Ratio (INRin‘000s)


ProvisionCoverageRatio - -

VIII. BUSINESS RATIOS:

SN Particulars 2018-19 2017-18

1 Interestincometoworkingfunds(1) 6.12% 4.14%

2 Non-interestincometoworkingfunds(1) 0.51% 0.07%

3 Operatingprofit(2)toworkingfunds(1) 0.45% (1.73%)

4 Returnonassets(3) 0.43% (2.21%)

5 Businessperemployee(INRin‘000s)(4) 270,439 159,433

6 Profitperemployee(INRin‘000s)(5) 1,439 (4,088)Note: 1. WorkingfundsrepresentaverageoftotalassetsasreportedtoRBIinForm

XunderSection27oftheBankingRegulationAct,1949duringtheyear.

2. OperatingProfitmeansNetInterestIncomeplusotherincomeexcludinggain/lossonfixedassets.

3. NetProfitasapercentagetoaverageworkingfunds.

4. Businessmeans totalofnetadvancesanddeposits,excluding interbankdepositsbutincludingVostroBalanceswithHO.

5. Productivityratioisbasedonyearendemployeenumbers.

IX. MATURITY PATTERN OF ASSETS AND LIABILITIESYear ended 31 March 2019 (INRin‘000s)

Maturity Buckets

Loans & Advances Investment Deposit Borrowing

Foreign Currency

Asset

Foreign Currency Liabilities

Day–1 143,274 185,170 9,641 145,225 197,548 148,455

2-7Days 555,118 3,756,287 594,846 3,583,892 954,447 33,722

8-14Days 115,183 11,757 257,486 103,631 111,208 114,868

15-30Days 1,952,889 14,522 900,000 302,751 322,476 303,623

31Days-2Months 2,716,719 336,846 2,022,487 93,359 421,241 136,352

Above2Months&upto3Months 628,014 1,186,999 42,391 686,784 527,347 688,491

Over3Months&upto6Months 1,145,371 680,167 99,234 398,888 594,208 399,083

Over6Months&upto1Year 1,064,530 73,803 348,004 - - 24,503

Over1Year&upto3Years 565,790 261,374 773,893 - - 122,942

Over3Year&upto5Years 5,317 - - - - -

Over5Years - 78,698 - - 69,155 -

Total 8,892,205 6,585,623 5,047,982 5,314,530 3,197,630 1,972,039

12


Year ended 31 March 2018 (INRin‘000s)

Maturity Buckets Loans & Advances Investment Deposit Borrowing

Foreign Currency

Asset

Foreign Currency Liabilities

Day–1 - 976,299 29,366 - 11,117 -

2-7Days 241,836 86,260 29,366 30,000 - -

8-14Days 355,607 555,028 29,366 550,000 - -

15-30Days 1,092,862 582,017 - 580,000 3,911 -

31Days-2Months 1,248,926 10,042 - 327,179 285,329 328,562

Above2Months&upto3Months 1,325,553 661 - 258,745 307,626 260,048

Over3Months&upto6Months 1,393,520 581,489 - 1,221,379 1,222,030 1,223,987

Over6Months&upto1Year 62,841 49,915 259,016 - - -

Over1Year&upto3Years 39,830 97,080 566,347 - - -

Over3Year&upto5Years 21,750 - - - - -

Over5Years - 35,457 - - 65,175 -

Total 5,782,725 2,974,248 913,461 2,967,303 1,895,188 1,812,597

Classificationofassetsandliabilitiesunderthedifferentmaturitybucketsarecompiledbymanagement(ongrossbasis)basedontheguidelinesissuedbytheRBIandarebasedonthesameassumptionsasusedbytheBankforcompilingthereturnssubmittedtoRBIandwhichhavebeenrelieduponbytheauditors.

X. EXPOSURE a. Lending to Sensitive Sectors: (INRin‘000s)

Particulars 2018-19 2017-18Exposure to Real Estate sectora) Directexposure (i) ResidentialMortgages– Lendingfullysecuredbymortgagesonresidential

propertythatisorwillbeoccupiedbytheborrowerorthatisrented;(Individualhousingloanseligibleforinclusioninprioritysectoradvancesmaybeshownseparately).

(ii) CommercialRealEstate**– Lendingsecuredbymortgagesoncommercial

realestate(officebuildings,retailspace,multi-purposecommercialpremises,multi-familyresidentialbuildings,multitenantedcommercialpremises,industrialorwarehousespace,hotels,landacquisition,developmentandconstruction,etc.).Exposurewouldalsoincludenon-fundbased(NFB)limits;

(iii) InvestmentsinMortgageBackedSecurities(MBS)andothersecuritisedexposures–

a. Residential b. CommercialRealEstateb) IndirectExposure Fundbasedandnon-fundbasedexposuresonNational

HousingBank(NHB)andHousingFinanceCompanies(HFCs).

-

850,000

-

-

-

-

-

-

Exposure to Capital Market - -

**Unsecuredand100%backedbySBLC.

b. Risk Category Wise Country Exposure: ProvisionforcountryriskexposureinlinewithRBIguidelinesisasfollows:

(INRin‘000s)

Risk CategoryExposure

(net) as at 31 March 2019

Provision held as at 31 March

2019

Exposure (net) as at 31 March 2018

Provision held as at 31 March

2018

Insignificant 51,761 - 10,028 -Low 3,301,346 1,117 81,284 -Moderate 293,113 - 114,811 -High 128,515 - - -VeryHigh - - - -Restricted - - - -Off-credit - - - -TOTAL 3,774,735 1,117 206,123 -

c. Disclosure on Single Borrower Limit (SBL)/ Group Borrower Limit (GBL): Duringtheyearended31March2019,thebankhascompliedwithReserve

BankofIndiaguidelinesonsingleborrowerandgroupborrowerlimit.SBLLimitwasdeterminedatamaximumlimitofBank’savailableeligiblecapitalbase.

d. Unsecured Advances against Intangible Securities: TherewerenoadvancesgrantedagainstIntangibleSecuritiessuchascharge

overtherights,licenses,authority(excludingGuarantees/SBLC),etc.duringtheyear.(FY2017-2018–Nil).

XI. DISCLOSURE OF PENALTIES BY RBI Duringtheyear,nopenaltieswereimposedbyRBI.

AnSGLbouncingincidentoccurredintheFinancialYear2018-19.TheBankhadenoughbalanceoffreesecuritiesinitsIntra-DayLiquidity(IDL)accountwithRBI.However,thesamesecuritygotusedoutofthesecuritiesheldbythebankwithRBIforIDLpurposesandalsoaRepotransactionwithTheClearingCorporationofIndiaLtd.(CCIL).TheBankwasunabletoreplacethesecurityblockedforIDLwithotheravailablefreesecurity.Duetothisunforeseenoperationalerror,theSGLbouncingincident occurred.

IntermsoftheReserveBankofIndiacirculardated14July2010bearingref.IDMD.DOD.17/11.01.01 (B) 2010-11,monetarypenaltywaswaivedoff byRBI for thisincidentvideletterdated26thJuly2018.

XII. EMPLOYEE BENEFITS (ACCOUNTING STANDARD -15) a. Provident Fund ThecontributiontoEmployeesProvidentFundamountedtoINR7,205(P.Y.

INR4,580)(in‘000s)fortheyearended31March2019.

b. Gratuity ThefollowingtablesgivethedisclosureregardingtheGratuitySchemein

accordancewiththeAccountingStandard15(Revised):

ChangesinthePresentValueofDefinedBenefitObligationsduringtheyear:

(INRin‘000s)


PresentvalueofDefinedBenefitObligationasattheBeginningofthePeriod

6,250 -

Interestcost 481 -

CurrentServiceCost 3,947 6,250

(LiabilityTransferredOut) - -

(BenefitsPaid) - -

Actuarial(gains)/LossesonObligations (168) -

Present value of the Defined Benefit Obligation at the End of the Period

10,510 6,250

ChangesintheFairValueofPlannedAssets (INRin‘000s)


FairValueofPlanAssetsatBeginningofthePeriod - -

ExpectedReturnonPlanAssets - -

ContributionsbytheEmployer - -

(BenefitPaidfromtheFund) - -

ActuarialGains/(Losses)onPlanAssets-DuetoExperience - -

Fair Value of Plan Assets at the End of the Period - -

Tableofrecognitionofactuarialgains/losses: (INRin‘000s)


Actuarial(Gains)/lossesonobligationfortheperiod (168) -

Actuarial(Gains)/lossesonassetfortheperiod - -

Actuarial (Gains)/losses recognized in income & expenses Statement

(168) -

AmountRecognizedintheBalanceSheet: (INRin‘000s)


Fairvalueofplanassetsattheendoftheperiod - -

(PresentvalueofbenefitobligationasattheendofthePeriod)

(10,510) (6,250)

Net (Liability)/asset recognized in the balance sheet

(10,510) (6,250)

13


ExpensesRecognizedintheProfit&LossAccount: (INRin‘000s)


Currentservicecost 3,947 6,250

Interestcost 481 -

Expectedreturnonplanassets - -

Actuarial(gains)/losses (168) -

Expense recognized in the income statement 4,260 6,250

ExperienceAdjustmentisasfollows: (INRin‘000s)

Experience Adjustment 2018-19 2017-18

Gratuity

DefinedBenefitObligation(A) 10,510 6,250

Planassets(B) - -

Surplus/(Deficit)(B-A) (10,510) (6,250)

ExperienceGains/(Losses)onObligation 376 -

ActuarialGains/(Losses)duetochangesonassumption

(208) -

ExperienceGains/(Losses)onPlanAssets - -

c. Leave Encashment Theactuarially determined liability forCompensatedAbsences (Privilege

Leave)oftheemployeesoftheGroupisgivenbelow: (INRin‘000s)


Provisionasatdate 5,451 5,245

d. Principal Actuarial Assumptions


DiscountRate 7.50% 7.70%

SalaryEscalationRate–JuniorLevelMid-Level&above

10%7%

10%7%

MortalityRate IndianAssuredLivesMortality(2006-08)

IndianAssuredLivesMortality(2006-08)

AttritionRate 5% 5%

ReturnonPlanAsset - - Theaboveassumptions are considered for determining actuarial liability

underGratuity&LeaveEncashment.LiabilitytowardsLeaveEncashmentandGratuityarenon-funded.

e. National Pension Scheme TheBankhascontributedINR3,183(in‘000s)fortheyearended31March

2019(31March2018–INR2,091(in‘000s))toNPSforemployeeswhohadoptedforthescheme.Thebankhasnoliabilityforfuturefundbenefitsotherthanitsannualcontributionfortheemployeeswhoagreetocontributetothescheme.

XIII. SEGMENT REPORTING (ACCOUNTING STANDARD -17) a) TheBank in Indiaoperatesasasingleunitand thereareno identifiable

geographicalsegments.

b) TheBankhasclassifieditsbusinessintothefollowingsegments,namely:

• Treasury–primarilycomprisingofforex,bonds,governmentsecuritiesandderivativesactivities.

• Wholesale/CorporateBanking-comprisingofCorporateBankingandTradeFinanceandCorporateDeposits.

• OtherBankingoperations–comprisingofOtherDepositsandallotherBankingoperations,whicharenotincludedunderabovesegments

• Unallocatedsegments,income,expense,assetsandliabilitiesincludesitemswhicharenotallocabletoothersegments.

Business Segment Reporting as of 31 March 2019

(INRin‘000s)

Business Segments Treasury Corporate / Wholesale Banking

Other Banking

Operations

Total

Revenue 417,441 593,322 788 1,011,551

Expense (347,132) (140,403) (194,534) (682,069)

Results 70,309 452,919 (193,746) 329,482

Unallocatedexpense (260,260)


Other Banking

Operations

Total

Operatingprofit/(loss) 69,222

Provisions (9,202)

Incometaxes 6,197

Extraordinaryprofit/(loss) -

Net profit / (loss) 66,217

Segmentassets 8,014,187 9,027,575 148,077 17,189,839

Unallocatedassets 213,688

Total assets 17,403,527

Segmentliabilities 6,860,197 2,517,194 1,258,782 10,636,173

Unallocatedliabilities 10,868

CapitalandReserves&Surplus

6,756,486

Totalliabilities 17,403,527

BusinessSegmentReportingasof31March2018 (INRin‘000s)


Other Banking

Operations

Total

Revenue 248,994 82,799 (16) 331,777

Expense (53,275) (52,947) (139,835) (246,057)

Results 195,719 29,852 (139,851) 85,720

Unallocatedexpense (224,490)

Operatingprofit/(loss) (138,770)

Provisions (30,391)

Incometaxes (2,546)

Extraordinaryprofit/(loss) -

Net profit / (loss) (171,707)

Segmentassets 4,296,048 5,908,395 166,094 10,370,537

Unallocatedassets 199,718

Total assets 10,570,255

Segmentliabilities 2,993,957 98,994 1,092,653 4,185,604

Unallocatedliabilities 15,600

CapitalandReserves&Surplus

6,369,051

Totalliabilities 10,570,255 Note:Inallocationofsomeitemsofexpenses/incomeandasset/liabilities,certainestimates

andassumptionshavebeenmadebythemanagement,whichhasbeenrelieduponbytheauditors.

TheBankdoesnothaveanyoverseasoperationsandhencethereisnogeographicalsegmentreporting.

XIV. RELATED PARTY TRANSACTIONS (ACCOUNTING STANDARD -18) TheinformationrequiredinthisregardinaccordancewithAccountingStandard18

on“RelatedPartydisclosures”,issuedbyICAIandRBIguidelines,isprovidedbelow:

a. Name and nature of relationship of related parties

Relationship Name Name

HeadOffice EmiratesNBDBank(PJSC)-UAE

BranchesofHeadOffice EmiratesNBDBank(PJSC)–KSABranches

OverseasSubsidiaryofHeadOffice EmiratesNBDS.A.E.(Egypt)

KeyManagementPersonnel SharadAgarwalChiefExecutiveOfficer–India

InlinewiththeReserveBankofIndiaCircularNo.DBR.BP.BCNo.23/21.04.018/2015-16dated1July2015;theBankhasnotdiscloseddetailspertainingtorelatedpartieswhereunderacategorythereisonlyoneentity.Similarly,therehasbeenonlyoneentityunderKeyManagementpersonnelatanygivenpointof time,and therefore, thosedetailsarealsonotdisclosed.

*RelatedpartiesareidentifiedbytheManagementandrelieduponbytheauditors.

14


a. Disclosure in respect of transactions with subsidiaries of Head Office (INRin000’s)

ParticularsOutstanding

as on 31 Mar 2019

Maximumbalance

during the FY

Outstanding as on

31 Mar 2018

Maximumbalance

during the FY

Advances - 35,557 26,232 26,232

Borrowing - - - -

AmountReceivable - - - -

AmountPayable - - - -

(INRin000’s)


InterestIncome* 282 78

CommissionIncome* 217 -

*Interest&CommissionIncomepertainingtoEmiratesNBDBankS.A.E(Egypt)

XV. LEASE ACCOUNTING (ACCOUNTING STANDARD 19) a) TheBank’s significant leasingarrangements are in respect of operating

leasesforcommercialpremisesandmotorcarforemployees.

b) MinimumLeasePaymentsoverthenon-cancellableperiodoftheleaseINR193,885(in‘000s).

(INRin‘000s)


Notlaterthan1year 67,269 64,449

Laterthan1yearandnotlaterthan5years 126,616 45,652

Laterthan5years - -

TOTAL 193,885 110,101 c) LeasepaymentsrecognisedintheProfitandLossAccountduringtheyear:

INR66,628(P.Y.INR63,963)(in‘000s)

XVI. ACCOUNTING FOR TAXES ON INCOME (ACCOUNTING STANDARD - 22) Theprimarycomponentsthatgiverisetodeferredtaxassetsandliabilitiesareas

follows: (INRin‘000s)

ParticularsFor the year

ended31 Mar 2019

Outstanding as on

31 Mar 2019

For the year ended

31 Mar2018

Outstanding as on

31 Mar 2018

Deferred Tax LiabilityDepreciationonFixedAssets 6,698 29,888 23,190 23,190

Total (A) 6,698 29,888 23,190 23,190Deferred Tax Asset*

Provisionforemployeebenefits 2,190 6,972 4,782 4,782

ProvisionforBonus 3,033 9,273 6,240 6,240ProvisionforStandardAsset 7,672 17,294 9,622 9,622Total (B) 12,895 33,539 20,644 20,644Deferred Tax Liability/ (Asset) (Net) (A) – (B) (6,197) (3,651) 2,546 2,546

*DeferredTaxAssetonTaxLossforthepreviousyearhasnotbeenrecognisedbasedonabsenceofvirtualcertaintyoffutureprofits.

XVII. OTHER EXPENDITURE Expense in excessof 1%ofTotal Income formingpart ofOtherExpenditure in

Schedule 16

(INRin‘000s)

Particulars FY2018-19 FY 2017-18

OtherMiscellaneousExpenses 34,193 42,866

OtherConsulting 7,760 12,697

BusinessPromotions/Events 973 7,124

XVIII. CAPITAL COMMITMENTS (INRin‘000s)

Particulars As at 31 March 2019

As at 31 March 2018

Estimateamountofcontractsremainingtobeexecutedoncapitalaccountandnotprovidedfor

- -

XIX. IMPAIRMENT OF ASSETS (ACCOUNTING STANDARD - 28) Fixedassetsacquiredbythebank,aretreatedas‘CorporateAssets’andarenot

CashGeneratingUnit’asdefinedbyAS-28.IntheopinionofthemanagementoftheBank,thereisnoimpairmentofanyofthefixedassetsoftheBank.

XX. PROVISIONS, CONTINGENT LIABILITIES AND ASSETS (ACCOUNTING STANDARD - 29)

Description of Contingent Liabilities Claims against the Bank not acknowledged as debt ThisrepresentslegalclaimsfiledagainsttheBankinitsnormalcourseofbusiness

andtaxclaims/demandsraisedbytheIncomeTaxauthorities,whicharedisputedby the Bank.

Liability on account of forward exchange and derivative contracts TheBankcurrentlyentersintoderivativecontractssuchasforeignexchangecontracts

andforeignexchangeoptionsonitsownaccountandforcustomers.Thenotionalamountsthatarerecordedascontingentliabilitiesformthebasisforthecalculationoftheinterestcomponentonthecontractswhereapplicable.

Guarantees given on behalf of constituents, Acceptances, Endorsements and other obligations

Asapartofitsnormalbankingactivities,theBankissuesdocumentarycreditandguaranteesonbehalfofitscustomers.

BREAK UP OF ‘PROVISIONS AND CONTINGENCIES’ SHOWN UNDER THE HEAD EXPENDITURE IN PROFIT AND LOSS ACCOUNT: (INRin‘000s)


ProvisionforDepreciationonInvestment (7,260) 7,260

ProvisiontowardsStandardsAssets 15,345 23,131

ProvisiontowardsCountryRiskExposures 1,117 -

ProvisionforDeferredTaxLiabilities/(Assets) (6,197) 2,546

Total 3,005 32,937

XXI. DISCLOSURE UNDER MICRO, SMALL AND MEDIUM ENTERPRISES DEVELOPMENT ACT, 2006 (MSMED, Act 2006)

TherearenodelaysinpaymentstomicroandsmallenterprisesasrequiredtobedisclosedunderTheMicro,SmallandMediumEnterprisesDevelopmentAct,2006.Thedeterminationhasbeenmadetotheextentsuchpartieswereidentifiedbasedontheinformationavailable.Thishasbeenrelieduponbytheauditors.

2. Additional Disclosures:I. DETAILS OF PROVISIONING PERTAINING TO FRAUD ACCOUNTS Thefollowingtablesetsforth,fortheperiodsindicated,thedetailsofprovisioning

pertainingtofraudaccounts.

(INRin‘000s)


NumberofFraudsreported - -

INRinvolvedinfrauds - -

Provisionmade - -

Unamortizedprovisiondebitedfromotherreserve - -II. FLOATING PROVISION TheBankdoesnothaveoutstandingfloatingprovisionsasatMarch31,2019(March

31,2018–Nil).

III. DRAWDOWN FROM RESERVES Duringthefinancialyearended31March2019,therehasbeennodrawdownfrom

Reserves(FY2017-18–Nil).

IV. DISCLOSURE OF COMPLAINTS/UNIMPLEMENTED AWARDS OF BANKING OMBUDSMAN -

InaccordancewithRBIcircularDBOD.No.Leg.BC.60/09.07.005/2006-07dated22February2007detailsofcustomercomplaintsandawardspassedbyBankingOmbudsmanareasunder:

a. Customer complaints

Sn Particulars 2018-19 2017-18

i. No. of complaints pending at the beginning ofthe year - -

ii. No.ofcomplaintsreceivedduringtheyear - -

iii. No.ofcomplaintsredressedduringtheyear - -

iv. No.ofcomplaintspendingattheendoftheyear - -

15


b. Awards passed by the Banking Ombudsman

SN Particulars 2018-19 2017-18

i. No.ofunimplementedawardsat thebeginningoftheyear - -

ii. No. of awards passed by the BankingOmbudsmanduringtheyear. - -

iii. No.ofawardsimplementedduringtheyear - -

iv. No.ofunimplementedawardsattheendoftheyear - -

V. DISCLOSURE OF LETTERS OF COMFORT (LOCs) ISSUED BY BANKS TheBankhasnotissuedanyLetterofComfort(LOC)duringtheyear(FY2017-18

–Nil).

VI. BANCASSURANCE BUSINESS Nofees/remunerationhadbeenreceivedinrespectofthebankassurancebusiness


VII. CONCENTRATION OF DEPOSITS, ADVANCES, EXPOSURES AND NPAs – a. Concentration of Deposits - (INRin‘000s)


Totaldepositsoftwentylargestdepositors 5,039,080 912,874

Percentageofdepositsoftwentylargestdepositorstototaldepositsofthebank(includesinter-bankdeposits)

99.82% 99.94%

b. Concentration of Advances** (INRin‘000s)


Totaladvancesoftwentylargestborrowers* 4,364,645 75,518

Percentageofadvancesoftwentylargestborrowerstototaladvancesofthebank 49.08% 1.31%

*excludinginterbankexposuresandbasedonactualfundedutilisation

**AdvancesarecomputedasperdefinitionofCreditExposureincludingderivativesfurnishedinMasterCircularofExposurenorms.

c. Concentration of Exposures@ (INRin‘000s)


Totalexposuretotwentylargestborrowers/customers* 9,947,177 1,039,000

Percentageofexposuretotwentylargestborrowers/customerstototalexposureofthebankonborrowers/customers

52.65% 15.40%

*excludinginterbankexposures

@ExposuresarecomputedbasedonCreditandInvestmentExposurefurnishedinMasterCircularofExposureNorms.

d. Concentration of NPAs (INRin‘000s)


TotalexposuretotopfourNPAaccount - -

VIII. SECTOR WISE ADVANCES & NPAs (INRin‘000s)

Sr. No. Sector

2018-19

Outstanding Total

Advances Gross NPAs

% of Gross NPAs to Total Advances in that Sector

A Priority Sector

1 Agricultureandalliedactivities - - -

2 Advancestoindustriessectoreligibleasprioritysectorlending 1,418,341 - -

Of which:

Gems & Jewelry 645,499 - -

Other Chemical & Chemical Products 772,841 - -

3 Services 1,053,579 - -

Of which:

Banking & Finance other than NBFCs 997,029 - -

4 Personalloans - - -

Sub-total (A) 2,471,920 - -

Sr. No. Sector

2018-19

Outstanding Total

Advances Gross NPAs


B Non Priority Sector


2 Industry 910,584 - -

Of which:

Drugs & Pharmaceuticals 500,000 - -

Other Industries (Miscellaneous Petroleum Products) 410,584 - -

3 Services 5,509,701 - -

Of which:

Banking & Finance other than NBFCs 3,530,531 - -

Commercial Real Estate 850,000 - -

NBFCs 779,000 - -


Sub-total (B) 6,420,285 - -

Total (A+B) 8,892,205 - -

(INRin‘000s)

Sr. No. Sector

2017-18

Outstanding Total

Advances Gross NPAs


A Priority Sector


2 Advancestoindustriessectoreligibleasprioritysectorlending 6,517 - -

Of which:

Gems & Jewelry 6,517 - -

3 Services 1,874,585 - -

Of which:



Sub-total (A) 1,881,102 - -

B Non Priority Sector


2 Industry - - -

3 Services 3,901,623 - -

Of which:



Sub-total (B) 3,901,623 - -

Total (A+B) 5,782,725 - -

IX. Priority Sector Lending Certificate (PSLC) Year ended 31 March 2019 (INRin‘000s)

Particulars PSLC Purchased PSLC Sold

PSLC–Agriculture 60,000 -

PSLC–SmallandMarginalFarmers 100,000 -

PSLC–MicroEnterprises - -

PSLC–General - -

16


Year ended 31 March 2018 (INRin‘000s)

Particulars PSLC Purchased PSLC Sold

PSLC–Agriculture - -

PSLC–SmallandMarginalFarmers - -

PSLC–MicroEnterprises - -

PSLC–General - -

X. MOVEMENT OF NPAs (INRin‘000s)


Openingbalance - -

Additions(FreshNPAs)duringtheyear - -

Sub-total(A) - -

Less:

(i)Upgradations - -

(ii)Recoveries(excludingrecoveriesmadefromupgradedaccounts) - -

(iii)Write-offs - -

Sub-total(B) - -

Closingbalance(A-B) - -

XI. DIVERGENCE IN ASSET CLASSIFICATION AND PROVISIONING FOR NPAs ThedisclosureinrespectofdivergenceinAssetclassificationisnotapplicable.

XII. OVERSEAS ASSETS, NPA AND REVENUE TheBankdoesnothaveanyOverseasAssetsandNPA’sasat31March2019(31

March2018–Nil)andhencerelatedrevenuesfortheyearended31March2019isNil(31March2018–Nil).

XIII. OFF-BALANCE SHEET SPVs SPONSORED (WHICH ARE REQUIRED TO BE CONSOLIDATED AS PER ACCOUNTING NORMS)

Name of the SPV sponsored

Domestic Overseas

Nil(31March2018–Nil) Nil(31March2018–Nil)

XIV. FACTORING EXPOSURES Thebankhasfactoringexposureof INR50,171(in ‘000s)asatMarch31,2019

(March31,2018–Nil)includedinSchedule9(A)(i)–BillsPurchasedandDiscounted

XV. UNAMORTISED PENSION AND GRATUITY LIABILITIES TheBankdoesnothaveanyunamortisedPension/GratuityLiabilitiesasat31March

2019(31March2018–Nil).

XVI. DISCLOSURE ON REMUNERATION

IntermsofguidelinesissuedbyRBIvidecircularno.DBOD.NO.BC.72/29.67.001/2011-12dated13January2012on“CompensationofWholeTimeDirectors/ChiefExecutiveOfficers/RisktakersandControlfunctionstaff,etc.”,thebankhassubmittedadeclarationtoRBItotheeffectthatthecompensationstructureinIndia,includingthatofCEO’s,primarilycoverstheobjectivesandthebasicprinciplesandstandardsofFinancialStabilityBoard(FSB).

XVII. DISCLOSURES RELATING TO SECURITIZATION Therewerenosecuritizedassetsoutstandingason31March2019(2018–Nil).

XVIII. PROVISION FOR LONG TERM CONTRACTS TheBankhasa processwherebyperiodically all long term contracts (including

derivativecontracts)areassessedformaterialforeseeablelosses.Attheyearend,theBankhasreviewedandrecordedadequateprovisionasrequiredunderanylaw/accountingstandardsformaterialforeseeablelossesonsuchlongtermcontracts(includingderivativecontracts)inthebooksofaccountanddisclosedthesameundertherelevantnotesinthefinancialstatements.

XIX. INTRA GROUP EXPOSURE - Intra-GroupExposuresason31March2019isNil(31March2018–INR26,232in

‘000s).

XX. TRANSFER TO DEPOSITOR EDUCATION AND AWARENESS FUND (DEAF) (INRin‘000s)


OpeningbalanceofamountstransferredtoDEAF - -

Add:AmountstransferredtoDEAFduringtheyear - -

Less:AmountsreimbursedbyDEAFtowardsClaim - -

ClosingbalanceofamountstransferredtoDEAF - -

XXI. UNHEDGED FOREIGN CURRENCY EXPOSURE TheBankmonitorsUnhedgedForeignCurrencyExposure(UHFCE)tofactorthe

riskarisingfromcurrencyvolatilityintopricingaspertheguidelinesstipulatedbyRBIon15January2014.AtthetimeofassessingtheproposaltheBanktakesthepositionofUHFCEfornewborrowersandcalculatestheincrementalprovisioningandcapitalrequirementtoadjustthepricingofnewloans.Thereafterbasedonthecertificateprovidedbythecustomer,theBankcalculatestheincrementalprovisioningandcapitalrequirementforcustomereveryquarterasperthemethodologysuggestedasperRBIcircular.ProvisiontowardsUHFCEasat31March2019isNil(31March2018–Nil).

XXII. LIQUIDITY COVERAGE RATIO TheBankduetosmallsizeofoperationshasbeencomputingitsLCRonamonthly

basis sinceAugust 2017.Themonthly average liquidity coverage ratio (LCR)maintainedforthequarterended31March2019was388.05%.Witheffectfrom1March2019thebankhascommencedcalculatingtheLCRondailybasis.

ThefollowingtablesetsforthmonthlyaverageunweightedandweightedvalueoftheLCRof theBank forquartersended30June2018,30September2018,31December2018and31March2019.

(INRin‘000s)

Sr. No. Particulars

30 Jun 18 30 Sep 18 31 Dec 18 31 Mar 19

Total Unweighted

Value (Average)

Total Weighted Value

(Average)

Total Unweighted

Value (Average)


(Average)

Total Unweighted

Value (Average)


(Average)

Total Unweighted

Value (Average)


(Average)

High Quality Liquid Assets

1 TotalHighQualityLiquidAssets(HQLA) 2,609,303 2,026,975 2,530,848 2,467,535

Cash Outflows

2 Retaildepositsanddepositsfromsmallbusinesscustomers,ofwhich:

940,222 93,912 1,053,521 105,234 1,131,038 112,974 1,122,247 112,098

(i)Stabledeposits 2,217 111 2,356 118 2,599 130 2,515 125

(ii)Lessstabledeposits 938,005 93,801 1,051,165 1,05,116 1,128,439 112,844 1,119,732 111,973

3 Unsecuredwholesalefunding,ofwhich: 1,317,512 1,238,370 3,457,242 2,761,017 3,059,196 2,643,028 3,227,638 2,319,355

(i)Operationaldeposits(allcounterparties) - - - - - - - -

(ii)Non-operationaldeposits(allcounterparties) 1,317,512 1,238,370 3,457,242 2,761,017 3,059,196 2,643,028 32,27,638 2,319,355

(iii)Unsecureddebt - - - - - - - -

4 Securedwholesalefunding - - - -

5 Additionalrequirements,ofwhich 7,197 7,197 2,084 2,084 1,680 1,680 3,784 3,784

(i)Outflowsrelatedtoderivativeexposuresandothercollateralrequirements

7,197 7,197 2,084 2,084 1,680 1,680 3,784 3,784

(ii)Outflowsrelatedtolossoffundingondebtproducts

- - - - - - - -

17


Sr. No. Particulars

30 Jun 18 30 Sep 18 31 Dec 18 31 Mar 19

Total Unweighted

Value (Average)


(Average)

Total Unweighted

Value (Average)


(Average)

Total Unweighted

Value (Average)


(Average)

Total Unweighted

Value (Average)


(Average)

(iii)Creditandliquidityfacilities - -km - - - - - -

6 Othercontractualfundingobligations 14,477 14,477 10,830 10,830 21,737 21,737 21,560 21,560

7 Othercontractualfundingobligations 1,989,808 59,694 1,104,830 33,145 3,652,149 109,565 5,387,652 161,630

8 Total Cash Outflows 1,413,650 2,912,310 2,888,984 2,618,427

Cash Inflows

9 Securedlending(e.g.reverserepos) - - - - - - - -

10 Inflowsfromfullyperformingexposures 1,141,643 1,131,268 1,990,130 1,914,177 1,830,982 1,522,643 2,259,616 1,963,594

11 Othercashinflows 5,982 5,982 7,478 7,478 7,167 7,167 32,198 18,958

12 Total Cash Inflows 1,147,625 1,137,250 1,997,607 1,921,655 1,838,149 1,529,810 2,291,814 1,982,552

21 Total HQLA 2,609,303 2,026,975 2,530,848 2,467,535

22 Total Net Cash Outflows 276,401 990,655 1,359,174 635,875

23 Liquidity Coverage Ratio (%) 944.03% 204.61% 186.20% 388.05%

(INRin‘000s)

Sr. No. Particulars

30-Sep-17 31-Dec-17 31-Mar-18

Total Unweighted

Value (Average)

Total Weighted Value (Average)

Total Unweighted

Value (Average)


Total Unweighted

Value (Average)


High Quality Liquid Assets

1 TotalHighQualityLiquidAssets(HQLA) 4,253 2,885,533 2,567,781

Cash Outflows

2 Retaildepositsanddepositsfromsmallbusinesscustomers,ofwhich: 1,802 158 5,50,529 55,013 835,427 83,444

(i)Stabledeposits 448 22 801 40 1,983 99

(ii)Lessstabledeposits 1,354 136 5,49,728 54,973 833,444 83,345

3 Unsecuredwholesalefunding,ofwhich: - - 21,034 20,742 35,562 22,795

(i)Operationaldeposits(allcounterparties) - - - - - -

(ii)Non-operationaldeposits(allcounterparties) - - 21,034 20,742 35,562 22,795

(iii)Unsecureddebt - - - - - -

4 Securedwholesalefunding - - -

5 Additionalrequirements,ofwhich - - 19,333 1,933 42,528 7,728

(i)Outflowsrelatedtoderivativeexposuresandothercollateralrequirements - - - - 3,862 3,862

(ii)Outflowsrelatedtolossoffundingondebtproducts - - - - - -

(iii)Creditandliquidityfacilities - - 19,333 1,933 38,666 3,866

6 Othercontractualfundingobligations 6,302 6,302 17,242 17,242 27,703 27,703

Othercontractualfundingobligations - - 4,669 140 1,191,968 35,759

8 Total Cash Outflows 6,459 95,070 177,429

CashInflows

9 Securedlending(e.g.reverserepos) - - - - - -

10 Inflowsfromfullyperformingexposures 2,968,300 2,968,300 22,48,333 2,248,333 673,121 673,121

11 Othercashinflows - - - - 3,441 3,441

12 Total Cash Inflows 2,968,300 2,968,300 2,248,333 2,248,333 676,562 676,562

21 Total HQLA 4,253 2,885,533 2,567,781

22 Total Net Cash Outflows 1,615 23,768 44,357

23 Liquidity Coverage Ratio (%) 263.37% 12,140.61% 5,788.87%

18


Qualitative disclosure around LCR: ReferLCRCircularforDisclosureRequirementshereunder (a) DriversofLCRresultsandCompositionofHQLA:TheLCRstandardaims

toensurethatabankmaintainsadequatelevelofunencumberedHQLAthatcanbeconvertedintocashtomeetitsliquidityneedsfora30calendardaytimehorizonundersignificantlysevereliquiditystressscenarioasspecifiedby supervisors.TheBank’sHighQuality LiquidAssets (HQLA) primarilyconsistofexcessSLRsecuritiesintheformofGovernmentsecurities,13%ofNDTLunderFALLCR(aspermissiblebyRBI),2%MSF(aspermissiblebyRBI),balancemaintainedwithRBIinexcessofCRRrequirementwhichareconsideredasLevel1HighQualityLiquidAssets(HQLA).BankalsohasinvestmentsinCommercialpaperissuedbyFinancialInstitutions(FI).CommercialPapersissuedbyFIareconsideredasHQLALevel2AssetforLCRcomputation.

(b) Intra-periodchanges:AsperRBIguidelines,theLCRmaintenancelimitis90%for2018and100%from1stJanuary2019onwards.TheLCRmaintainedhasalwaysbeenabovetheRBIlimit.Theintraperiodchangesaremainlyonaccountofchangeinun-encumberedexcessSLRpositions.

(c) Derivative Exposure and potential collateral calls:MTM arising out ofoutstandingFXhasbeenappropriatelyconsideredLCRcomputation.

(d) Currencymismatches:LCRcomputationisaggregatedacrosscurrencies,INRbeingthepredominantcurrency.OtherthanINR,theBankhasmajorexposureinUSdollarsastherearepreandpostshipmentloansbookedindollars.TheseloansarefundedthroughUSdollarborrowingfromtheheadofficeformatchingtenorsandportfolio.

(e) Degreeofcentralisationofliquiditymanagement:Bank’sliquiditymanagementand monitoring is centralised. Bank’s EXCO has adopted liquiditymanagementpolicyinlinewithRBIregulationandGrouprequirement.

(f) OtherinflowsandoutflowsintheLCRcalculationthatarenotcapturedintheLCRcommontemplatebutwhichtheinstitutionconsiderstoberelevantforitsliquidityprofile:AlltheinflowsandoutflowsconsiderednecessaryfromthebalancesheetarecapturedincomputationofLCR.Further,theBankbelievesthattheinflowsandoutflowswhichmighthaveamaterialimpactundertheliquiditystressscenariohavebeenconsideredforthepurposeofLCR.

XXIII. DISCLOSURE ON NOSTRO ACCOUNTS There are no outstanding entry formore than threemonths in nostro accounts

whichispendingforreconciliation.Further,theBankhasnotwrittenoff/backanyoutstandingentrytothedebit/creditoftheprofitandlossaccountduringtheyearended31March2019.

XXIV. PROVIDENT FUND TheHon’bleSupremeCourtofIndia(“SC”)bytheirorderdated28February2019,in

thecaseofSuryaRoshaniLimited&othersv/sEPFO,setouttheprinciplesbasedonwhichallowancespaidtotheemployeesshouldbeidentifiedforinclusioninbasicwagesforthepurposesofcomputationofProvidentFundcontribution.Subsequently,areviewpetitionagainstthisdecisionhasbeenfiledandispendingbeforetheSCfordisposal.

PendingdecisiononthesubjectreviewpetitionanddirectionsfromtheEPFO,theimpact,ifany,isnotascertainableandconsequentlynoeffecthavebeengivenintheaccounts.

XXV. CORPORATE SOCIAL RESPONSIBILITY (CSR) AspertheprovisionsofSection135oftheCompaniesAct,2013,theBankisnot

requiredtospendtowardsCSRinthecurrentyear.XXVI. PREVIOUS YEAR’S COMPARATIVE Previousyear’sfigureshavebeenregroupedwhererequired.


ForKhimji Kunverji & Co. LLP(formerly Khimji Kunverji & Co FRN : 105146W)CharteredAccountants






BASEL III DISCLOSURES OF THE INDIA BRANCH FOR THE YEAR ENDED 31 MARCH 2019

All amts. in INR. ’000s, unless otherwise statedDF 1. Scope of application1. Qualitative and Quantitative Disclosures: TheBank is subject to the capital adequacy guidelines stipulated byReserve

BankofIndia(RBI),whicharebasedontheframeworkoftheBaselCommitteeonBankingSupervision.AsperBaselIIIguidelines,theBankisrequiredtoachieveaminimumCapitaltoRiskWeightedAssetsRatio(CRAR)of9%{11.5%including

CapitalConservationBuffer(CCB)},withminimumCommonEquityTierI(CET1)of5.5%(8%includingCCB)by31stMarch2020.TheseguidelinesonBaselIIIweretobeimplementedbybanksfrom1stApril2013inaphasedmanner.TheminimumcapitalrequiredtobemaintainedbytheBankfortheyearended31stMarch2019is9%(10.875%includingCCB)withminimumCommonEquityTier1(CET1)of5.5%(7.375%includingCCB).TheriskmanagementframeworkofIndianoperationsisintegratedwiththeBank’sstrategyandbusinessplanningprocessesatgloballevel.TheBankhascomprehensiveriskmanagementframeworktomonitor,evaluateandmanagetheprincipalrisksassumedinconductingitsactivities.TheriskmanagementfunctioninIndiaisasperdirectivesandframeworksetoutatHeadOfficelevel.Asat31March2019, theBankdoesnothaveany investment insubsidiaries/JointVenturesandAssociates,significantminorityequityinvestmentininsurance,financialandcommercialentities.

2. Capital structure Qualitative Disclosures Bankregulatorycapitalconsistsoftwocomponents–Tier1capitalandTier2capital.

Both components of capital provide support for banking operations andprotectdepositors.AsperReserveBankofIndia(RBI)guidelines,thecompositionofcapitalinstrumentsforforeignbanksinIndiawouldincludethefollowingelements:

Tier 1 Capital:

· Interest-freefundsreceivedfromHeadOffice

· StatutoryreserveskeptinIndianbooks

· RemittablesurplusretainedinIndianbookswhichisnotrepatriablesolongasthebankfunctionsinIndia

· CapitalReserves

· Interest-freefundsremittedfromHeadOfficeforacquisitionofproperty

Tier 2 Capital:

· Generalprovisionsandlossreserves:

Generalprovisionsandlossreservescanbereckoneduptoamaximumof1.25percentofthetotalCreditrisk-weightedassets.SuchprovisionsandreservesincludeprovisionsonStandardAssets,CountryRiskExposures,UnhedgedForeignCurrencyExposures,InvestmentReserveAccountandInvestmentFluctuationReserve.

· HeadOfficeborrowingsinforeigncurrencyraisedbyforeignbanksoperatinginIndiaclassifiedasSubordinatedDebtsubjecttoamaximumceilingof50%oftheTier1capitalmaintainedinIndia.

Quantitative Disclosures

(a)Tier1Capital (Rs.‘000s)

AmountReceivedfromHeadOffice 6,437,100

TransferofHeadOfficefundsonaccountofRepresentativeOfficeclosure

103,658

StatutoryReserves 16,555

RemittableSurplusRetainedinIndiaforCRAR -

CapitalReserves -

AmountpayabletoH.OtowardsIndiabranchsetuprelatedprojectexpenses

303,060

Less:AccumulatedLosses 171,707

Less:IntangibleAssetsandDeferredTaxAssets 264,091

Total Tier 1 Capital 6,424,575

(b)Tier2Capital (Rs.‘000s)

GeneralProvisionsandLossReservesreckoneduptoamaximumof1.25percentofthetotalCreditrisk-weightedassets

70,038

Amounteligibletobereckonedascapitalfunds 70,038

(c)DebtCapitalInstrumentsEligibleforinclusioninUpperTier2Capital (Rs.‘000s)

TotalAmountOutstanding -

ofwhichamountraisedduringthecurrentyear -

Amounteligibletobereckonedascapitalfunds -

(d)SubordinatedDebtEligibleforinclusioninLowerTier2Capital (Rs.‘000s)

Totalamountoutstanding -

ofwhichamountraisedduringthecurrentyear -

Amounteligibletobereckonedascapitalfunds -

Total Tier 2 Capital (b) + (c) + (d) 70,038

19


(e) Otherdeductionfromcapital.

Therearenootherdeductionsfromcapital.

(f) TotalEligibleCapital

ThetotaleligiblecapitalisRs.6,494,613(‘000s).

DF 2. Capital Adequacy Qualitative Disclosures TheBank has assessed its capital requirement taking into account the 3main

risksasdefinedbyPillar1oftheBaselIIInormsviz:CreditRisk,MarketRiskandOperationalRisk.CreditRiskiscomputedusingtheStandardisedApproach,MarketRiskiscalculatedusingtheStandardisedDurationApproachandOperationalRiskiscalculatedusingtheBasicIndicatorApproach.Theriskcomputationundereachofthese3categoriesisadequatelycoveredbytheCapitaloftheBank.

The Bank has assessed its future capital requirement and the samewill bedocumentedintheICAAP(InternalCapitalAdequacyAssessmentProcess)basedonthepositionasofMarch31,2019.Thecapitalrequirementwillbere-assessedperiodically.

Theexisting level ofCapital is adequate tomeet theBank’s current and futurebusinessrequirementsandthecapitalandCRARratiooftheBankissignificantlyhigher than theminimum regulatory capital and ratio prescribed by theRBI.AsummaryoftheBank’scapitalrequirementforcredit,marketandoperationalriskandthecapitaladequacyratioason31stMarch2019ispresentedbelow:


(Rs.‘000s)

(a) CapitalRequirementsforCreditRisk:

PortfoliossubjecttoStandardisedApproach 856,472

SecuritisationExposures -

(b) CapitalRequirementsforMarketRisk:StandardisedDurationApproach: InterestRateRisk 96,537

ForeignExchangerisk(includingGold) 102,233

EquityRisk -

(c) CapitalRequirementforOperationalRisk:

BasicIndicatorApproach 64,586

TotalCapitalRequired 1,119,828

TotalEligibleCapital 6,494,613

TotalRiskWeightedAssets 10,297,264

TotalCapitalRatio 63.07%

Tier1CapitalRatio 62.39%

DF 3. Credit risk: general disclosures Qualitative Disclosures Creditriskisdefinedasriskoffinanciallossarisingfromthefailureofthecustomer

orcounterparty,tomeetitscontractualobligationstotheBank.Itcanarisefrombothfundedandnon-fundedtransactionsthatarecontingentinnature.

Credit riskmanagement approach is basedon the foundation of independenceandintegrityofthecreditriskassessment,managementandreportingprocessescombinedwithclearpolicies,limitsandapprovalstructures.Standardproceduresspecifictobusinessesaresetuptomanagevariousrisksacrossdifferentbusinesssegments,productsandportfolios.

Thecreditpolicyfocusesonthecorecreditprinciplesanddetails,specificpolicyguidelines,lendingparameters,controlandmonitoringrequirements,problemloanidentification,managementofhighriskcustomersandprovisioning.

Credit facilities are grantedbasedon thedetailed credit risk assessment of thecounterparty.Theassessmentconsidersamongstotherthingsthepurposeofthefacility, sourcesof re-payment, prevailingandpotentialmacro-economic factors,industrytrends,customers’creditworthinessandstandingwithintheindustry.Thecredit facility administration process is undertaken by an independent functionto ensure proper execution of all credit approvals,maintenance, lodgment ofdocumentationandproactivecontrolsovermaturities,expiryoflimitsandcollaterals.

Operationsaremanagedbyindependentunitsresponsibleforprocessingtransactionsinlinewithcreditapprovalsandstandardoperatingguidelines.

Theinternalratingmodelsmeasurecounterpartyrisk(expressedasaprobabilityofdefaultwithinoneyear).TheriskoncounterpartyexposureonmarkettransactionsismeasuredbytheguidanceprovidedbytheRBI.

TheBankhasawell-definedprocessforidentificationofweakercreditriskexposures[classifiedasEarlyAlert(EA),WatchList(WL)&Non-Performing(NPA)Accounts]anddealingwiththemeffectively.TherearepolicieswhichgoverncreditgradingofEA,WL&NPAsaswellasinterestsuspensionandprovisioning,inlinewithRBIguidelines.ExposuresareclassifiedasNPAs(sub-standard,doubtfulorloss)inlinewithRBIguidelinesattheearlierofassessmentofinabilitytorepayorwheninterestorloaninstalments,overdraftsandbillsareoverdue,outoforderorremainunpaidrespectivelyfor90days.

Thereare internalcapson investmentexposures,exposuretosensitivesectors,exposuretosingleobligorsandgroups.Therearealsospecificcontrolsonexposuresto banks and financial institutions, designed to ensure against excessive riskconcentration.ThereisaspecializedandcentralizeddepartmentattheGroupHeadOfficeformanagingfinancialinstitutions.

Quantitative Disclosuresa) Totalgrosscreditriskexposure

(Rs.’000s)

Particulars Fund Based(Note 1)

Non Fund Based(Note 2) Total

Asat31March2019 8,892,205 5,630,892 14,523,097

1. TheaboveamountsrepresentGrossAdvancesbeforecreditriskmitigants.

2. NonfundbasedexposuresexcludesexposurespertainingtoFXandDerivatives.

b) Geographicdistributionofexposures(Rs.’000s)

ParticularsAs at 31 March 2019

Fund Based Non Fund Based Total

Overseas - - -

Domestic 8,892,205 5,630,892 14,523,097

Total 8,892,205 5,630,892 14,523,097c) Industrytypedistributionofexposures

(Rs.’000s)

IndustryAs at 31 March 2019

Fund Based Non Fund Based Total

Drugs&Pharmaceuticals 500,000 454,942 954,942

OtherChemical&ChemicalProducts

772,841 - 772,841

GemsandJewelry 645,499 - 645,499

OtherIndustries 410,584 813,260 1,223,844

ResiduaryOthers* 6,563,281 4,362,690 10,925,971

Total 8,892,205 5,630,892 14,523,097*ExposuretoResiduaryOtherscomprisesofexposurestoServicessector.

d) Residualcontractualmaturitybreakdownofassets(Rs.’000s)

As at 31 March 2019

1 day 395,675

2-7days 5,303,112

8-14days 141,516

15-30days 1,978,110

31daysandupto2months 3,155,054

over2monthsandupto3months 1,836,209

Over3Monthsandupto6months 1,897,861

Over6Monthsandupto1year 1,154,597

Over1Yearandupto3years 925,503

Over3Yearsandupto5years 5,317

Over5years 610,573

Total 17,403,527e) AmountofNPAs(Gross)–Nil

f) NetNPAs-Nil

g) NPARatios

GrossNPAstogrossadvances-0.00%

NetNPAstonetadvances-0.00%

h) MovementofNPAs (Rs.’000s)

Particulars Gross NPAs Provision Net NPAOpeningbalance - - -Additions - - -Reduction(includingwritebacks/writeoffs) - - -Closingbalance - - -

20


i) Nonperforminginvestments–Nilj) Provisionsheldfornon-performinginvestments–Nilk) Movementofprovisionsfordepreciationoninvestments

(Rs.’000s)

Particulars 2018-19

OpeningBalanceatbeginningoftheyear 7,260

Add:Provisionsmadeduringtheyear -

Less:Write-off/write-backofexcessprovisionsduringtheyear 7,260

ClosingBalanceatendoftheyear -DF 4. Credit risk: disclosures for portfolios subject to the standardised approachQualitative DisclosuresTheBank follows theRBIguidelineson theuseofexternal credit ratings forassigningriskweightsunderthestandardisedapproach.RatingsofthefollowingIndiancreditratingagencies are used for domestic non-bank entities –BrickworksRatings IndiaPvt Ltd,CreditAnalysisandResearchLtd,CRISILLtd,ICRALtd,IndiaRatingsandResearchLtd,SMERatingAgencyofIndiaLtd,whileratingsfrominternationalratingagencies-Fitch,Moody’sandStandard&Poor’s–areconsideredforassigningriskweightsforexposurestointernationalbanksandnon-residententities.Amountoutstandingundervariousriskbuckets: Rs.’000s

Particulars As at 31 March 2019

Below100%riskweight 11,360,766

100%riskweight 5,302,432

Morethan100%riskweight 165,566

Deducted -

Total ** 16,828,764

**TheamountoutstandingundervariousriskbucketsexcludesexposurestoQCCPandarepriortocreditriskmitigants.DerivativeexposuresarecomputedusingCurrentExposureMethod(CEM).

DF 5. Credit risk mitigation: disclosures for standardised approaches:Qualitative DisclosuresCollateralsandguaranteesareeffectivelyusedasmitigatingtoolsbytheBank.ThequalityofcollateraliscontinuouslymonitoredandassessedandtheBankseekstoensureenforceabilityofthecollateral.Majorcategoriesofcollateralsincludelienovercash/fixeddeposits,pledgeover securities, guarantees (corporate, bank andpersonal guarantees),mortgageoverimmovableproperties,hypothecationofcurrentassets,includingreceivablesandinventory,andvehicles.CollateralsarerevaluedregularlyaspertheGroup’screditpolicy.Inaddition,adhocvaluationsarealsocarriedoutdependingonthenatureofcollateralandgeneraleconomiccondition.ThisenablestheBanktoassessthefairmarketvalueofthecollateralandensurethatrisksareappropriatelycovered.Securitystructuresandlegalcovenantsarealsosubjecttoregularreview.

Eligible collateral formitigation isasperRBIguidelines–cash,government securities,KisanVikasPatraandNationalSavingsCertificates,lifeinsurancepolicies,liquid/rateddebtsecurities,andmutualfundunits.

Quantitative Disclosures:AsonMarch31,2019,thetotalexposurecoveredbyeligiblefinancialcollateralwasNil.

DF 6. Securitisation: disclosure for standardised approachTheBank has not undertaken any securitization transactions and does not have anysecuritizationexposures.

DF 7. Market risk in trading bookQualitative DisclosuresMarket risk is therisk that thevalueoffinancial instruments in theBank’sbooks–withtheinclusionofsomeotherfinancialassetsandliabilities-willproducealossbecauseofchangesinfuturemarketconditions.TheBanktakesonrisksinthepursuitofitsstrategicandbusinessobjectives.TheBankmonitorsandmanagesthefollowingcategoriesofmarketrisk:

• InterestRateRisk:lossesinvalueduetochangesinthelevel,slopeandcurvatureofyieldcurves,thevolatilityofinterestratesandchangesincreditspreads;

• FXRisk:lossesinvalueduetoexposurestochangesinspotprices,forwardpricesandvolatilitiesofcurrencyrates.

TheBank’sriskexposurestomarketriskaresegregatedintoTradingandBankingBooks.TheTradingBookincludethosefinancialinstrumentsheldwithtradingintentarisingfrommarket-making,position-takingandothersodesignatedfinancial instrumentsaccountedforat fairvaluedaily.Capitalcharge formarket riskexposures in theTradingBookareconsideredundertheStandardisedDurationApproach.

Market Risk Oversight and Management Process

Aspartoftheenterprise-wideriskmanagementframework,agovernanceprocessisappliedtothemarketrisktakingactivitieswhichincludes,interalia:

• risk limitswith appropriatemonitoring, reporting and limits excesses’ escalationprocedures;

• independentvaluationoffinancialinstrumentsintheTradingBookandmeasurementofmarketrisk;

• acomprehensivesetofpolicies,proceduresandlimits;and

• monitoringawiderangeofriskmetricsappropriatefortherespectivetradingactivities-suchasrisksensitivities,NetOpenPositionsandValue-at-Risk(VaR).

Experienced portfoliomanagers are accountable formanagingmarket riskwithin theapprovedlimits.TheBankusesappropriateandindependentlyvalidatedmarketstandardmodelsfortherevaluationandriskmeasurementofitslinearfinancialproductsandreceivesregularmarket informationfromindependentmarketdataproviders inorder tomeasureandmonitormarketrisk.

Value-at-Risk(VaR)iscalculateddaily,currentlyforFXandinduecourseforrates,usingthefollowingparameters

• Statisticallevelofconfidence:99%;

• Holdingperiod:1businessday;

• Methodology:FullRevaluation,HistoricalSimulationusingover2yearsofhistoricalmarket data.

Quantitative DisclosuresCapital requirements for market risk: Rs.’000s

Standardised duration approach As at 31 March 2019

Interestraterisk 96,537

Foreignexchangerisk 102,233

Equityrisk -

Capitalrequirementsformarketrisk 198,770

DF 8. Operational risk:

Qualitative disclosures

Operationalriskisdefinedastheriskoflossesresultingfrominadequateorfailedinternalprocesses,peopleandsystems,orfromexternalevents.TheBank’sobjectiveistopreventmajoroperationalrisklossesandtoprotecttheBankagainstanymaterialdamage.

TheBankusestheBasicIndicatorApproachtoestimateoperationalriskRWAsandcapitalrequirements.Aframeworkforpro-activelymanagingoperationalriskhasbeenestablished.TheBankhasaholisticapproachtosystematicallyidentify,assessandmanageoperationalrisksacrossdifferentproducts,processesandclientsegments.Keytools/methodologiesforthemanagementofoperationalriskinclude:

• operationalriskandcontrolassessments;

• settingandmonitoringofkeyriskindicators;

• reportingandremediationofoperationalriskincidents;

• issuesandactiontracking;and

• newproductandprocessapprovals.

Acomprehensiveinformationsecurityframeworkhasbeenimplementedtosafeguarddataandsystems.Requisitepoliciesandprocessesareinplacetoreportandmonitorfraud.TheBankobtainscomprehensiveandtailoredinsurancecovertoprotecttheBankagainstunexpectedandsubstantialunforeseeablelosses.

BusinessContinuityManagementisdefinedasaholisticmanagementprocessthatidentifiespotential threats to an organisation and the impacts to business operations that thosethreats,ifrealised,mightcauseandwhichprovidesaframeworkforbuildingorganisationalresiliencewiththecapabilityforaneffectiveresponsethatsafeguardstheinterestsofitskeystakeholders,reputation,brandandvalue-creatingactivities.ThebusinesscontinuityprocessacrosstheGroupisbasedontheinternationalstandardISO22301:2012(E).TheBankhasdevelopedabusinesscontinuityplanandthealternatesiteisnowoperationalandhasbeenrecentlytested.

DF 9. Interest Rate Risk in the Banking Book (IRRBB)

InterestRateRiskintheBankingBook(‘IRRBB’)isdefinedastheexposureofthenon-tradingproductsoftheBanktointerestrates.Non-tradingportfoliosincludeallbankingbookpositionsthatarisefromtheinterestrateontheBank’sconsumerandcommercialbankingassetsandliabilities,andfinancialinvestmentsdesignatedasheldtomaturity.IRRBBarisesprincipallyfrommismatchesbetweenthefutureyieldsonassetsandtheirfundingcosts,asaresultofinterestratechanges.

Inordertomanagethisriskoptimally,IRRBBistransferredtoGroupMarkets&Treasury(GM&T)underthesupervisionoftheALCO.ALCOisrequiredtoregularlymonitorallsuchinterestrateriskpositionstoensuretheycomplywithinterestraterisklimits.

Formeasuringoverallinterestsensitivityinthebankingbook,theBankconsidersgapsininterestratesensitiveassetsandliabilitiesinvariousbucketsaswellastheimpactonMarketValueofEquityonamonthlybasis.


AsrequiredunderPillarIIInorms,theincrease/declineinearningsandeconomicvalueforanupward/downwardrateshockof200basispointsason31March2019,brokendownbycurrencyisasfollows:

21


EarningsPerspective (Rs.‘000s)

CurrencyInterest Rate Shock

2% Increase 2% Decrease

Rupeesandothermajorcurrencies 25,275 (25,275)

USDollar 2,830 (2,830)

EconomicValuePerspective (Rs.‘000s)

CurrencyInterest rate shock

2% increase 2% decrease

Rupeesandothermajorcurrencies 2,597 (2,597)

USDollar 3,246 (3,246)

DF 10. General Disclosure for exposures related to Counterparty Credit RiskQualitative disclosuresCounterpartyCreditRisk(CCR)istheriskthatthepersonorinstitutionwithwhomtheBankhasenteredintoafinancialmarketcontract–whoisacounterpartytothecontract–couldeitherdefaultordeteriorateincreditworthinessleadingtoafailuretoperformonitscontractualobligations,causinglossestotheBank.

Thefuturemarketvalueoftheexposureandthecounterparty’screditqualityareuncertainandmayvaryovertimeasunderlyingmarketvariableschange.CCRisamultidimensionalformof risk,affectedbyboth theexposure tocounterpartyand thecreditqualityof thecounterparty,bothofwhicharesensitivetomarket-inducedchanges.

Forlocalregulatoryandcapitalpurposes,thecreditequivalentamountofamarketrelatedoff-balancesheettransactioniscalculatedusingthecurrentexposuremethodwhichisthesumofcurrentcreditexposure(positivemark-to-market)andpotentialfuturecreditexposure(determinedbymultiplyingthenotionalprincipalamountbytherelevantadd-onfactor).

SettlementRiskariseswhentheGroup,actingasaprincipal,exchangessecuritiesorcashpaymentstoacounterpartyonavaluedateandisunabletoverifythatpaymentorsecuritieshavebeenreceivedinexchangeuntilafterithaspaidordelivereditssideoftransaction.

Counter-partycreditriskexposuresarerequiredtobeassessedandlimitsaretobeapprovedaspartoftheusualcreditsubmissionandapprovalprocess.

WrongWayRisk(WWR)ariseswhenthereisadverse(positive)correlationbetweenaclient’screditworthiness(probabilityofdefault)andtheBank’screditexposuretothatclient.WWRisgenerallydiscouragedandisrequiredtobeidentifiedandspecificapprovalobtained.

Quantitative disclosuresTheoutstandingbalanceason31March2019andthederivativeexposurecalculatedusingCurrentExposureMethod(CEM)isprovidedbelow (Rs.’000s)

Particulars Notional Amounts Current Exposure

ForeignExchangecontracts 206,338 4,127

InterestRateSwaps - -

CrossCurrencySwaps - -

Total 206,338 4,127

DF 11. Composition of capital (Rs.in‘000s)

ParticularsAmount Amounts

Subject to Pre-Basel III Treatment

Ref No.

Common Equity Tier 1 capital: instruments and reserves

1 Directlyissuedqualifyingcommonsharecapitalplusrelatedstocksurplus(sharepremium)(FundsfromHeadOffice)

6,843,818 - a

2 Retainedearnings 16,555 - b

3 Accumulatedothercomprehensiveincome(andotherreserves)

- -

4 DirectlyissuedcapitalsubjecttophaseoutfromCET1(onlyapplicabletonon-jointstockcompanies)

- -

Public sector capital injections grandfathered until January 1, 2018

- -

5 Commonsharecapitalissuedbysubsidiariesandheldbythirdparties(amountallowedingroupCET1)

- -

6 Common Equity Tier 1 capital before regulatory adjustments

6,860,373 - a + b



Ref No.

Common Equity Tier 1 capital : regulatory adjustments

7 Prudentialvaluationadjustments - -

8 Goodwill(netofrelatedtaxliability) - -

9 Intangiblesotherthanmortgage-servicingrights(netofrelatedtaxliability)

432,147 - e+g

10 Deferredtaxassets 3,651 - h

11 Cash-flowhedgereserve - -

12 Shortfallofprovisionstoexpectedlosses

- -

13 Securitisationgainonsale - -

14 Gainsandlossesduetochangesinowncreditriskonfairvaluedliabilities

- -

15 Defined-benefitpensionfundnetassets - -

16 Investmentsinownshares(ifnotalreadynettedoffpaid-upcapitalonreportedbalancesheet)

- -

17 Reciprocalcross-holdingsincommonequity

- -

18 Investmentsinthecapitalofbanking,financialandinsuranceentitiesthatareoutsidethescopeofregulatoryconsolidation,netofeligibleshortpositions,wherethebankdoesnotownmorethan10%oftheissuedsharecapital(amountabove10%threshold)

- -

19 Significantinvestmentsinthecommonstockofbanking,financialandinsuranceentitiesthatareoutsidethescopeofregulatoryconsolidation,netofeligibleshortpositions(amountabove10%threshold)

- -

20 Mortgageservicingrights(amountabove 10%threshold)

- -

21 DeferredtaxassetsarisingfromtemporaryDifferences(amountabove10%threshold,netofrelatedtaxliability)

- -

22 Amountexceedingthe15%threshold - -

23 ofwhich:significantinvestmentsinthecommonstockoffinancialentities

- -

24 ofwhich:mortgageservicingrights - -

25 ofwhich:deferredtaxassetsarisingfromtemporarydifferences

- -

26 Nationalspecificregulatory adjustments(26a+26b+26c)

- -

26a ofwhich:Investmentsintheequitycapitalofunconsolidatednon-financialsubsidiaries

- -

26b ofwhich:Shortfallintheequitycapitalofmajorityownedfinancialentitieswhichhavenotbeenconsolidatedwiththe bank

- -

26c ofwhich:Unamortizedpensionfundsexpenditures

- -

Regulatory AdjustmentsAppliedtoCommonEquityTier1inrespectofAmountsSubjecttoPre-BaselIIITreatment

ofwhich:HODebitBalance

22




Ref No.

27 RegulatoryadjustmentsappliedtoCommonEquityTier1duetoinsufficientAdditionalTier1andTier2tocoverdeductions

- -

28 Total regulatory adjustments to Common equity Tier 1

435,798 - e+g+h

29 Common Equity Tier 1 capital (CET1) 6,424,575 -

Additional Tier 1 capital : instruments

30 DirectlyissuedqualifyingAdditionalTier1instrumentsplusrelatedstocksurplus(sharepremium)(31+32)

- -

31 ofwhich:classifiedasequityunderapplicableaccountingstandards(PerpetualNon-CumulativePreferenceShares)

- -

32 ofwhich:classifiedasliabilitiesunderapplicableaccountingstandards(PerpetualdebtInstruments)

- -

33 DirectlyissuedcapitalinstrumentssubjecttophaseoutfromAdditionalTier1

- -

34 AdditionalTier1instruments(andCET1instrumentsnot includedinrow5)issuedbysubsidiariesandheldbythirdparties(amountallowedingroupAT1)

- -

35 ofwhich:instrumentsissuedbysubsidiariessubjecttophaseout

- -

36 Additional Tier 1 capital before regulatory adjustments

- -

Additional Tier 1 capital: regulatory adjustments

37 InvestmentsinownAdditionalTier1instruments

- -

38 Reciprocalcross-holdingsinAdditionalTier1instruments

- -

39 Investmentsinthecapitalofbanking,financialandinsuranceentitiesthatareoutsidethescopeofregulatoryconsolidation,netofeligibleshortpositions,wherethebankdoesnotownmorethan10%oftheissuedcommonsharecapitaloftheentity(amountabove10%threshold)

- -

40 Significantinvestmentsinthecapitalofbanking,financialandinsuranceentitiesthatareoutsidethescopeofregulatoryconsolidation(netofeligibleshortpositions)

- -

41 Nationalspecificregulatory adjustments(41a+41b)

- -

41a InvestmentsintheAdditionalTier1capitalofunconsolidatedinsurancesubsidiaries

- -

41b ShortfallintheAdditionalTier1capitalofmajorityownedfinancialentitieswhichhavenotbeenconsolidatedwiththebank

RegulatoryAdjustmentsAppliedtoAdditionalTier1inrespectofAmountsSubjecttoPre-BaselIIITreatment

ofwhich:… - -

42 RegulatoryadjustmentsappliedtoAdditionalTier1duetoinsufficientTier2tocoverdeductions

- -



Ref No.

43 Total regulatory adjustments to Additional Tier 1 capital

- -

44 Additional Tier 1 capital (AT1) - -

44a Additional Tier 1 capital reckoned for capital adequacy

- -

45 Tier 1 capital (T1 = CET1 + Admissible AT1) (29 + 44a)

6,424,575 -

Tier 2 capital : instruments and provisions

46 DirectlyissuedqualifyingTier2instrumentsplusrelatedstocksurplus

- -

47 DirectlyissuedcapitalinstrumentssubjecttophaseoutfromTier2

- -

48 Tier2instruments(andCET1andAT1instrumentsnotincludedinrows5or34)issuedbysubsidiariesandheldbythirdparties(amountallowedingroupTier2)

- -

49 ofwhich:instrumentsissuedbysubsidiariessubjecttophaseout

- -

50 Provisions(PleaserefertoNotetoTemplatePoint50)

70,038 - c+d+f

51 Tier 2 capital before regulatory adjustments

70,038 -

Tier 2 capital: regulatory adjustments

52 InvestmentsinownTier2instruments - -

53 Reciprocalcross-holdingsinTier2instruments

- -

54 Investmentsinthecapitalofbanking,financialandinsuranceentitiesthatareoutsidethescopeofregulatoryconsolidation,netofeligibleshortpositions,wherethebankdoesnotownmorethan10%oftheissuedcommonsharecapitaloftheentity(amountabovethe10%threshold)

- -

55 Significantinvestments13inthecapitalbanking,financialandinsuranceentitiesthatareoutsidethescopeofregulatoryconsolidation(netofeligibleshortpositions)

- -

56 Nationalspecificregulatoryadjustments(56a+56b)

- -

56a ofwhich:InvestmentsintheTier2capitalofunconsolidatedinsurancesubsidiaries

- -

ofwhich:ShortfallintheTier2capitalofmajorityownedfinancialentitieswhichhavenotbeenconsolidatedwiththe bank

- -

56b RegulatoryAdjustmentsAppliedToTier2inrespectofAmountsSubjecttoPre-BaselIIITreatment

ofwhich:InvestmentinSubsidiaries - -

57 Total regulatory adjustments to Tier 2 capital

- -

58 Tier 2 capital (T2) 70,038 -

58a Tier 2 capital reckoned for capital adequacy

70,038 -

58b Excess Additional Tier 1 capital reckoned as Tier 2 capital

- -

58c Total Tier 2 capital admissible for capital adequacy (58a + 58b)

70,038 -

23




Ref No.

59 Total capital (TC = T1 + Admissible T2) (45 + 58c)

6,494,613 -

RiskWeightedAssetsin respectofAmountsSubjecttoPre-BaselIIITreatment

-

ofwhich:… - -

60 Total risk weighted assets (60a + 60b + 60c)

10,297,264 -

60a ofwhich:totalcreditriskweightedassets

7,875,605 -

60b ofwhich:totalmarketriskweightedassets

1,827,766 -

60c ofwhich:totaloperationalriskweightedassets

593,893 -

Capital ratios

61 CommonEquityTier1(asapercentageofriskweightedassets)

62.39% -

62 Tier1(asapercentageofriskweightedassets)

62.39% -

63 Totalcapital(asapercentageofriskweightedassets)

63.07% -

64 Institutionspecificbufferrequirement(minimumCET1requirementpluscapitalconservationandcountercyclicalbufferrequirements,expressedasapercentageofriskweightedassets)

1.875% -

65 ofwhichcapitalconservationbufferrequirement

1.875% -

66 ofwhich:bankspecificcountercyclical bufferrequirement

- -

67 ofwhich:G-SIBbufferrequirement - -

68 CommonEquityTier1availabletomeetbuffers(asapercentageofriskweightedassets)

56.89% -

National minima (if different from Basel III)

69 NationalCommonEquityTier1minimumratio(ifdifferentfromBaselIIIminimum)

5.50% -

70 NationalTier1minimumratio(ifdifferentfromBaselIIIminimum)

7.00% -

71 Nationaltotalcapitalminimumratio(ifdifferentfromBaselIIIminimum)

10.875% -

Amounts below the thresholds for deduction (before risk weighting)

72 Non-significantinvestmentsinthecapitalofotherfinancialentities

- -

73 Significantinvestmentsinthecommonstockoffinancialentities

- -

74 Mortgageservicingrights(netofrelatedtaxliability)

- -

75 Deferredtaxassetsarisingfromtemporary differences(netofrelatedtaxliability)

- -

Applicable caps on the inclusion of provisions in Tier 2

76 ProvisionseligibleforinclusioninTier2inrespectofexposuressubjecttostandardisedapproach(priortoapplicationofcap)

70,038 -



Ref No.

77 CaponinclusionofprovisionsinTier2understandardisedapproach

98,445 -

78 ProvisionseligibleforinclusioninTier2inrespectofexposuressubjecttointernalratings-basedapproach(priortoapplicationofcap)

- -

79 CapforinclusionofprovisionsinTier2under internalratings-basedapproach

- -

Capital instruments subject to phase-out arrangements (only applicable between March 31, 2017 and March 31, 2022)

80 CurrentcaponCET1instrumentssubjecttophaseoutarrangements

- -

81 AmountexcludedfromCET1duetocap(excessovercapafterredemptionsandmaturities)

- -

82 CurrentcaponAT1instrumentssubjecttophaseoutarrangements

- -

83 AmountexcludedfromAT1duetocap(excessovercapafterredemptionsandmaturities)

- -

84 CurrentcaponT2instrumentssubjecttophaseoutarrangements

- -

85 AmountexcludedfromT2duetocap(excessovercapafterredemptionsandmaturities)

- -

NotetothetemplateRow No. of the template Rs.in‘000

Deferredtaxassetsassociatedwithaccumulatedlosses -

10 Deferredtaxassets(excludingthoseassociatedwithaccumulatedlosses)netofDeferredtaxliability

3,651

Totalasindicatedinrow10 3,651

Ifinvestmentsininsurancesubsidiariesarenotdeductedfullyfromcapitalandinsteadconsideredunder10%thresholdfordeduction,theresultant

-

19 increaseinthecapitalofbank -

ofwhich:IncreaseinCommonEquityTier1capital

ofwhich:IncreaseinAdditionalTier1capital -

ofwhich:IncreaseinTier2capital -

26b Ifinvestmentsintheequitycapitalofunconsolidatednon-financialsubsidiariesarenotdeductedandhence,riskweightedthen:

-

(i) IncreaseinCommonEquityTier1capital -

(ii) Increaseinriskweightedassets -

ExcessAdditionalTier1capitalnotreckonedforcapitaladequacy

-

(differencebetweenAdditionalTier1capitalasreportedinrow44andadmissibleAdditionalTier1capitalasreportedin44a)

44a ofwhich:ExcessAdditionalTier1capitalwhichisconsideredasTier2capitalunderrow58b

-

EligibleProvisionsincludedinTier2capital 70,038

50 EligibleRevaluationReservesincludedinTier2capital -

Totalofrow50 70,038

58a ExcessTier2capitalnotreckonedforcapitaladequacy(differencebetweenTier2capitalasreportedinrow58andT2asreportedin58a)

-

24


Table DF-12 : Composition of Capital- Reconciliation requirements :

Rs.in‘000

Particulars

Balance sheet as in published

financial statements Reference

As at 31.03.2019

Capital & Liabilities

Paid-upCapital(fundsfromHO) 6,861,976

Ofwhich:amounteligibleforCET1 6,843,818 a

i. Reserves&Surplus (105,490)

MinorityInterest

Ofwhich:StatutoryReserve 16,555 b

Ofwhich:InvestmentFluctuationReserve 25,000 c

Ofwhich:InvestmentReserve 5,445 d

Ofwhich:AccumulatedLossesofPreviousYear

(171,707) e

Ofwhich:balanceinP/LforCurrentYear 19,217

TotalCapital 6,756,486

Deposits 5,047,982

ii. ofwhich:Depositsfrombanks 1,501,532

ofwhich:Customerdeposits 3,546,450

ofwhich:Otherdeposits(pl.specify) -

A Borrowings 5,314,530

ofwhich:FromRBI 630,000

iii. ofwhich:Frombanks -

ofwhich:Fromotherinstitutions&agencies

2,929,688

ofwhich:Others(pl.specify)(Borrowings 1,754,842

outsideIndia)ofwhich:Capitalinstruments

iv. Otherliabilities&provisions 284,529

ofwhich:ProvisionforStandardAdvances&CountryRisk

39,593 f

Total 17,403,527

Assets

CashandbalanceswithReserveBankofIndia

244,100

i. Balancewithbanksandmoneyatcalland 955,429

shortnotice

Investments: 6,585,623

ofwhich:Governmentsecurities 2,386,302

ii. ofwhich:Otherapprovedsecurities -

ofwhich:Shares

B ofwhich:Debentures&Bonds -

ofwhich:Subsidiaries/JointVentures/Associates

-

ofwhich:Others(CommercialPapers, 1,542,220

Rs.in‘000

Particulars

Balance sheet as in published

financial statements Reference

As at 31.03.2019

MutualFundsetc.)

Loansandadvances 8,892,205

iii. ofwhich:Loansandadvancestobanks -

ofwhich:Loansandadvancestocustomers

8,892,205

iv. Fixedassets 359,227

ofwhich:ComputerSoftware 260,440 g

Otherassets 366,943

v. ofwhich:Goodwillandintangibleassets -

ofwhich:Deferredtaxassets 3,651 h

vi. Goodwillonconsolidation -

vii. DebitbalanceinProfit&Lossaccount -

TotalAssets 17,403,527

DF-13: Main Features of Regulatory Capital Instruments:

Item # Particulars Head Office Capital

1 Issuer EmiratesNBDBank(P.J.S.C)HeadOffice

2 UniqueIdentifier NotApplicable

3 Governinglawsoftheinstrument Applicableregulatoryrequirements

Regulatory Treatment

4 TransitionalBaselIIIrules CommonEquityTierI

5 Post-transitionalBaselIIIrules CommonEquityTierI

6 Eligibleatsolo/group/group&solo Solo

7 Instrumenttype Others–InterestfreefundsfromH.O

8 Amountrecognizedintheregulatorycapital(RsthousandasofMarch31,2019)

6,843,818

9 Parvalueofinstrument NotApplicable

10 Accountingclassification Shareholders’equity

11 Originaldateofissuance Atvarioustimessinceinception

12 PerpetualorDated Perpetual

13 OriginalMaturitydate Nomaturity

14 Issuercallsubjecttopriorsupervisoryapproval No

15 Optionalcalldate,contingentcalldatesandredemption amount

NotApplicable

16 Subsequentcalldates,ifapplicable NotApplicable

Coupons/Dividends

17 FixedorFloatingdividend/coupon NotApplicable

18 Couponrateandanyrelatedindex NotApplicable

19 Existenceofadividendstopper NotApplicable

20 Fullydiscretionary,partiallydiscretionaryormandatory

NotApplicable

25


Item # Particulars Head Office Capital

21 Existenceofstep-uporotherincentivetoredeem

NotApplicable

22 Non-cumulativeorCumulative NotApplicable

23 ConvertibleorNon-convertible NotApplicable

24 Ifconvertible,conversiontrigger(s) NotApplicable

25 Ifconvertible,fullyorpartially NotApplicable

26 Ifconvertible,conversionrate NotApplicable

27 Ifconvertible,mandatoryoroptionalconversion NotApplicable

28 Ifconvertible,specifyinstrumenttypeconvertible into

NotApplicable

29 Ifconvertible,specifyissuerofinstrumentitconvertsinto

NotApplicable

30 Write-downfeature No

31 Ifwrite-down,write-downtrigger(s) NotApplicable

32 Ifwrite-down,fullorpartial NotApplicable

33 Ifwrite-down,permanentortemporary NotApplicable

34 Iftemporarywrite-down,descriptionofwrite-upmechanism

NotApplicable

35 Positioninsubordinationhierarchyinliquidation(specifyinstrumenttypeimmediatelyseniortoinstrument)

Allothercreditorsanddepositorsofthebank

36 Non-complianttransitionedfeatures No

37 Ifyes,specifynon-compliantfeatures NotApplicable

DF -14: Full Terms and Conditions of Regulatory Capital Instruments:Theregulatorycapitalconsistsofcapitalfundsreceivedfromheadofficewithoutanytermsandconditions.

DF-15: Disclosure Requirements for Remuneration:TheBank’scompensationpoliciesprimarilycoverstheobjectivesandthebasicprinciplesandstandardsofFinancialStabilityBoard.InaccordancewiththerequirementsoftheRBICircularNo.DBODNo.BC.72/29.67.001/2011-12dated13January2012, theBankhassubmittedadeclarationtoRBIconfirmingtheaforesaidmatter.Accordinglynodisclosureisrequiredtobemadeinthisregard.

DF-16: Equities – Disclosure for Banking Book Positions:Qualitative DisclosuresThebankhasnoinvestmentinEquities

Quantitative DisclosuresTheBookvalueandMarketvalueofquotedandunquotedsecuritiesareasfollows:

(Rs.in000s)

Securities Book Value Market Value

InvestmentinEquities:Quoted - -

InvestmentinEquities:Unquoted - -

DF 17- Summary comparison of accounting assets vs. leverage ratio exposure measure:

Item (Rs. ‘000)

1 Totalconsolidatedassetsasperpublishedfinancialstatements

17,403,527

2 Adjustmentforinvestmentsinbanking,financial,insuranceorcommercialentitiesthatareconsolidatedforaccountingpurposesbutoutsidethescopeofregulatoryconsolidation

-

3 Adjustmentforfiduciaryassetsrecognizedonthebalancesheetpursuanttotheoperativeaccountingframeworkbutexcludedfromtheleverageratioexposuremeasure

-

4 Adjustmentsforderivativefinancialinstruments 61,744

5 Adjustmentforsecuritiesfinancingtransactions(i.e.reposandsimilarsecuredlending)

3,657,639

Item (Rs. ‘000)

6 Adjustmentforoff-balancesheetitems(i.e.conversiontocreditequivalentamountsofoff-balancesheetexposures)

3,215,263

7 Otheradjustments (354,202)

8 Leverage ratio exposure 23,983,971

DF 18. Leverage ratio common disclosure template:

Item (Rs. ‘000)

On-balance sheet exposures

1 On-balancesheetitems(excludingderivativesandSFTs,butincluding collateral)

17,313,416

2 (AssetamountsdeductedindeterminingBaselIIITier1capital)

(264,091)

3 Total on-balance sheet exposures(excludingderivativesandSFTs)(sumoflines1and2)

17,049,325

Derivative exposures

4 Replacementcostassociatedwithallderivativestransactions(i.e.netofeligiblecashvariationmargin)

111

5 Add-onamountsforPFEassociatedwithallderivativestransactions

61,633

6 Gross-upforderivativescollateralprovidedwheredeductedfromthebalancesheetassetspursuanttotheoperativeaccountingframework

-

7 (Deductionsofreceivablesassetsforcashvariationmarginprovidedinderivativestransactions)

-

8 (ExemptedCCPlegofclient-clearedtradeexposures) -

9 Adjustedeffectivenotionalamountofwrittencreditderivatives -

10 (Adjustedeffectivenotionaloffsetsandadd-ondeductionsforwrittencreditderivatives)

-

11 Total derivative exposures (sum of lines 4 to 10) 61,744

Securities financing transaction exposures

12 GrossSFTassets(withnorecognitionofnetting),afteradjustingforsaleaccountingtransactions

3,649,688

13 (NettedamountsofcashpayablesandcashreceivablesofgrossSFTassets)

-

14 CCRexposureforSFTassets 7,951

15 Agenttransactionexposures -

16 Total securities financing transaction exposures(sumoflines12to15)

3,657,639

Other off-balance sheet exposures

17 Off-balancesheetexposureatgrossnotionalamount 5,630,892

18 (Adjustmentsforconversiontocreditequivalentamounts) (2,415,629)

19 Off-balance sheet items (sum of lines 17 and 18) 3,215,263

Capital and total exposures

20 Tier 1 capital 6,424,575

21 Total exposures (sum of lines 3, 11, 16 and 19) 23,983,971

Leverage ratio

22 Basel III leverage ratio 26.79

independent auditor’s report - emirates nbd · 2019. 7. 31. · for khimji kunverji & co llp...

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