Oriental Bank of Commerce (OBC) has informed that in the limited review report of the Bank for the quarter ended June 30, 2007, the auditors of the Company have made the following observations:
1. a. Provision for gratuity, pension, leave encashment and depreciation on fixed assets has been made on estimated basis.
b. Pending clarification from Reserve Bank of India on Accounting Standard 15 (Revised 2005 Employee Benefits) issued by Institute of Chartered Accountants of India, provision for Retirement Benefits has been made on estimated basis.
c. Not Readily Realizable Advances amounting to Rs 464.10 crores (net outstanding as on August 14, 2004) and Not Readily Realisable Assets of Rs 41.21 crores (outstanding as on August 14, 2004) pertaining to erstwhile Global Trust Bank Ltd, have been included as part of assets of the Bank on the merger, which were otherwise required to be taken on collection basis as per the scheme of amalgamation.
2. Provision for Deferred Tax which is being recognized by the Bank as at the year end as a practice, is not quantified for the period under review.
3. The impact, if any, on account of balancing of books, confirmation / reconciliation and clearance of outstanding entries in certain accounts is not accounted for as the same is not ascertainable.
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