Q) Calculate the Expected Loss for bank.

2021 REVENUE EXPENSES Amount in (crore, lakhs, thousands) Interest Earned on Advances (NII) Other Income Interest Expenses Operating Expenses Taxes EC invested in g-secs (Assumed 5.5% as per 364 day t-bills) PD*LGD*EAD ie. (NPA*70%*Loans) Loans NPA% Return on EC Expected Loss (EL) ROA ROE Actual CAR Consolidated Balance Sheet As on 31st March 2021 (in' 000) Schedule No. As on 31.03.2021 As on 31.03.2020 1 2 CAPITAL AND LIABILITIES Capital Reserves and Surplus Deposits Borrowings Other Liabilities and Provisions 3 310,87,95 6331,36,50 75654,49,48 1764,88,00 1519,23,83 310,87,95 5659,56,41 71785,15,40 4065,11,80 1492,77,20 4 5 85580,85,76 83313,48,76 6 0 00 TOTAL ASSETS Cash and balances with Reserve Bank of India Balances with Banks and Money at Call and Short Notice 7 Investments Advances 9 Fixed Assets 10 Other Assets 11 TOTAL Contingent Liabilities Bills for Collection Significant Accounting Policies 17 Notes on Account 18 The Schedules referred to above form an intergal part of the Balance Sheet 4866,14,91 449,41,71 21634,68,54 51693,69,73 837,85,73 6099,05,14 85580,85,76 8387,48,61 2378,63,20 2756,05,04 163,44,02 17545,34,22 56964,27,18 826,41,89 5057,96,41 83313,48,76 7723,75,78 2315,38,01 12 Consolidated Profit and Loss Account For the Year Ended 31st March 2021 in' 000s) Year ended 31.03.2021 Year ended 31.03.2020 6232,41,47 1495,06,50 7727,47,97 6474,76,99 1261,62,54" 7736,39,53 4049,21,72 1679,22,92 1516,57,44 7245,02,08 4444,41,24 1635,21,76 1224,98,88 7304,61,88 482,45,89 101,68,14 584,14,03 431,77,65 119,64,95 551,42,60 Schedule No. 1. INCOME Interest Earned 13 Other Income 14 Total II. EXPENDITURE Interest Expended 15 Operating Expenses 16 Provisions and Contingencies Total III. PROFIT Net Profit for the Year Profit brought forward Total IV. APPROPRIATIONS Transfer to Statutory Reserve Transfer to Capital Reserve Transfer to Revenue Reserve Transfer to Special Reserve u/s 36 (1) (viii) of the Income Tax Act, 1961 Transfer from Investment Reserve Account Transfer to Investment Fluctuation Reserve Transfer to Other Funds Dividend paid Tax on Dividend Paid Balance carried to Balance Sheet Total Earning per share Basic Diluted Significant Accounting Policies 17 Notes on Account 18 The Schedules referred to above form an intergal part of the Profit And Loss Account * Previous year figures recomputed to exclude GST wherever applicable 125,00,00 199,68,68 100,00,00 47,20,66 110,00,00 1830822 30,00,00 6,73,79 0 0 26,88,41 0 0 0 85,36,28 584,14,03 77,81 0 98,82,75 20,31,89 101,68,14 551,42,60 15.52 15.47 13.89 13.89 Consolidated Cash Flow Statement For the Year Ended 31st March 2021 in' 000) Year ended March 31, 2021 Year Ended March 31, 2020 A CASH FLOW FROM OPERATING ACTIVITIES Net Profit after Tax and Extra Ordinary Items 482,45,89 431,77,65 Add: Adjustments for: Provision for Tax 129,36,02 90,24,67 (Profit)/Loss on sale Fixed Assets 1,88,46 70,71 Depreciation on Fixed Assets including Lease 73,52,26 63,76,49 Adjustment charges Provisions and Contingencies 1387,21,41 1134,74,21 Amortisation of premium on Held to Maturity 125,32,00 76,05,35 Investments Loss on sale to SC/RC amortised during the year Write-off of Fixed Assets 6,65 1717,36,80 1365,51,43 Operating Profit Before Working Capital Changes 2199,82,69 1797,29,08 Adjustment for: D) (Increase)/Decrease in Advances & Other Assets 4653,51,31 -3608,73,67 ii) (Increase)/Decrease in Investments -4311,18,00 -1431,41,46 iii) Increase/(Decrease) in Deposits,Borrowings & 971,05,53 3367,73,82 -1672,41,31 Other Liabilities iv) Change in Revenue Reserve 189,37,03 1502,75,87 Cash Generated from Operations 3702,58,56 124,87,77 Less: Direct taxes paid 334,31,38 214,47,41 Net Cash Flow from Operating Activities (A) 3368,27,18 -89,59,64 B CASH FLOW FROM INVESTING ACTIVITIES Purchase of Fixed Assets -87,62,25 -57,52,90 Sale of Fixed Assets 71,05 1,48,09 Investment in wholly owned subsidiary-KBL Services -50,00 Ltd Net Cash used in Investing Activities (B) -87,41,20 -56,04,81 TOTAL (A+B) 3280,85,98 -145,64,45 in'000s) Year ended March 31, 2021 Year Ended March 31, 2020 47,17 -885,25,59 C CASH FLOW FROM FINANCING ACTIVITIES Proceeds from issue of share capital (net of expenses) Proceeds from long term borrowings Dividend paid (Including Tax on Dividend) Net Cash Generated from Financing Activities (C) Net Increase in Cash & Cash Equivalents (A+B+C) Cash & Cash Equivalents as at the beginning of the year Cash & Cash Equivalents as at the end of the year 61 -425,37,50 -119,24,45 -544,61,34 -690,25,79 3609,74,85 -884,78,42 2396,07,56 2919,49,06 5315,56,62 2919,49,06 2021 REVENUE EXPENSES Amount in (crore, lakhs, thousands) Interest Earned on Advances (NII) Other Income Interest Expenses Operating Expenses Taxes EC invested in g-secs (Assumed 5.5% as per 364 day t-bills) PD*LGD*EAD ie. (NPA*70%*Loans) Loans NPA% Return on EC Expected Loss (EL) ROA ROE Actual CAR Consolidated Balance Sheet As on 31st March 2021 (in' 000) Schedule No. As on 31.03.2021 As on 31.03.2020 1 2 CAPITAL AND LIABILITIES Capital Reserves and Surplus Deposits Borrowings Other Liabilities and Provisions 3 310,87,95 6331,36,50 75654,49,48 1764,88,00 1519,23,83 310,87,95 5659,56,41 71785,15,40 4065,11,80 1492,77,20 4 5 85580,85,76 83313,48,76 6 0 00 TOTAL ASSETS Cash and balances with Reserve Bank of India Balances with Banks and Money at Call and Short Notice 7 Investments Advances 9 Fixed Assets 10 Other Assets 11 TOTAL Contingent Liabilities Bills for Collection Significant Accounting Policies 17 Notes on Account 18 The Schedules referred to above form an intergal part of the Balance Sheet 4866,14,91 449,41,71 21634,68,54 51693,69,73 837,85,73 6099,05,14 85580,85,76 8387,48,61 2378,63,20 2756,05,04 163,44,02 17545,34,22 56964,27,18 826,41,89 5057,96,41 83313,48,76 7723,75,78 2315,38,01 12 Consolidated Profit and Loss Account For the Year Ended 31st March 2021 in' 000s) Year ended 31.03.2021 Year ended 31.03.2020 6232,41,47 1495,06,50 7727,47,97 6474,76,99 1261,62,54" 7736,39,53 4049,21,72 1679,22,92 1516,57,44 7245,02,08 4444,41,24 1635,21,76 1224,98,88 7304,61,88 482,45,89 101,68,14 584,14,03 431,77,65 119,64,95 551,42,60 Schedule No. 1. INCOME Interest Earned 13 Other Income 14 Total II. EXPENDITURE Interest Expended 15 Operating Expenses 16 Provisions and Contingencies Total III. PROFIT Net Profit for the Year Profit brought forward Total IV. APPROPRIATIONS Transfer to Statutory Reserve Transfer to Capital Reserve Transfer to Revenue Reserve Transfer to Special Reserve u/s 36 (1) (viii) of the Income Tax Act, 1961 Transfer from Investment Reserve Account Transfer to Investment Fluctuation Reserve Transfer to Other Funds Dividend paid Tax on Dividend Paid Balance carried to Balance Sheet Total Earning per share Basic Diluted Significant Accounting Policies 17 Notes on Account 18 The Schedules referred to above form an intergal part of the Profit And Loss Account * Previous year figures recomputed to exclude GST wherever applicable 125,00,00 199,68,68 100,00,00 47,20,66 110,00,00 1830822 30,00,00 6,73,79 0 0 26,88,41 0 0 0 85,36,28 584,14,03 77,81 0 98,82,75 20,31,89 101,68,14 551,42,60 15.52 15.47 13.89 13.89 Consolidated Cash Flow Statement For the Year Ended 31st March 2021 in' 000) Year ended March 31, 2021 Year Ended March 31, 2020 A CASH FLOW FROM OPERATING ACTIVITIES Net Profit after Tax and Extra Ordinary Items 482,45,89 431,77,65 Add: Adjustments for: Provision for Tax 129,36,02 90,24,67 (Profit)/Loss on sale Fixed Assets 1,88,46 70,71 Depreciation on Fixed Assets including Lease 73,52,26 63,76,49 Adjustment charges Provisions and Contingencies 1387,21,41 1134,74,21 Amortisation of premium on Held to Maturity 125,32,00 76,05,35 Investments Loss on sale to SC/RC amortised during the year Write-off of Fixed Assets 6,65 1717,36,80 1365,51,43 Operating Profit Before Working Capital Changes 2199,82,69 1797,29,08 Adjustment for: D) (Increase)/Decrease in Advances & Other Assets 4653,51,31 -3608,73,67 ii) (Increase)/Decrease in Investments -4311,18,00 -1431,41,46 iii) Increase/(Decrease) in Deposits,Borrowings & 971,05,53 3367,73,82 -1672,41,31 Other Liabilities iv) Change in Revenue Reserve 189,37,03 1502,75,87 Cash Generated from Operations 3702,58,56 124,87,77 Less: Direct taxes paid 334,31,38 214,47,41 Net Cash Flow from Operating Activities (A) 3368,27,18 -89,59,64 B CASH FLOW FROM INVESTING ACTIVITIES Purchase of Fixed Assets -87,62,25 -57,52,90 Sale of Fixed Assets 71,05 1,48,09 Investment in wholly owned subsidiary-KBL Services -50,00 Ltd Net Cash used in Investing Activities (B) -87,41,20 -56,04,81 TOTAL (A+B) 3280,85,98 -145,64,45 in'000s) Year ended March 31, 2021 Year Ended March 31, 2020 47,17 -885,25,59 C CASH FLOW FROM FINANCING ACTIVITIES Proceeds from issue of share capital (net of expenses) Proceeds from long term borrowings Dividend paid (Including Tax on Dividend) Net Cash Generated from Financing Activities (C) Net Increase in Cash & Cash Equivalents (A+B+C) Cash & Cash Equivalents as at the beginning of the year Cash & Cash Equivalents as at the end of the year 61 -425,37,50 -119,24,45 -544,61,34 -690,25,79 3609,74,85 -884,78,42 2396,07,56 2919,49,06 5315,56,62 2919,49,06