We have audited the accompanying Standalone Financial Statements of National Bank for Agriculture and Rural Development

REGD. No. D. L.-33004/99 The Gazette of India EXTRAORDINARY PART III—Section 4 PUBLISHED BY AUTHORITY No. 713] NEW DELHI, TUESDAY, SEPTEMBER 10, 2024/BHADRA 19, 1946 [Note on source coverage: this rescue extraction was rendered from the first 20 pages and the last 40 pages only (pages 1-20 and 138-177 of a 177-page PDF), per the rescue pipeline's page cap for oversized documents. Pages 1-20 are entirely in Hindi (the Hindi-language Standalone Financial Statements, running through Schedule 15A) and contain no further English text besides the masthead above. Pages 21-137 (the remainder of the Hindi Standalone Financial Statements and the opening portion of the English Standalone Financial Statements - the "NOTIFICATION" header if any, Balance Sheet, Profit and Loss Account, Schedules 1-18/notes 1-21.2) were not rendered and are not available to this extraction. Continuous English-language text resumes below from page 138 (Standalone Note 21.3(b) onward) through page 177 (end of document).] (b) Information on Primary Business Segment (Standalone) (Amount in Rs crore) +------------------------+------------+------------+------------+------------+------------+------------+------------+------------+------------+------------+ | Particulars | Treasury | Refinance | Direct Lending | Other Business | Total | | Business Segments | 2023-24 | 2022-23 | 2023-24 | 2022-23 | 2023-24 | 2022-23 | 2023-24 | 2022-23 | 2023-24 | 2022-23 | +------------------------+------------+------------+------------+------------+------------+------------+------------+------------+------------+------------+ | Revenue | 5341.75 | 2749.93 | 24528.07 | 19663.31 | 18909.70 | 16810.54 | 67.08 | 106.75 | 48846.60 | 39330.53 | | Result | 618.77 | 161.62 | 4439.17 | 5618.98 | 6172.90 | 2491.03 | (3162.94) | (1716.92) | 8067.90 | 6554.71 | | Segment Assets | 101692.90 | 57335.46 | 430623.59 | 395164.08 | 368992.13 | 338679.79 | 9553.94 | 10473.06 | 910862.56 | 801652.39 | | Segment Liabilities | 110712.29 | 91083.64 | 341185.02 | 302270.88 | 373276.76 | 330288.59 | 85688.49 | 78009.28 | 910862.56 | 801652.39 | +------------------------+------------+------------+------------+------------+------------+------------+------------+------------+------------+------------+ Operating Profit 8067.90 (6554.71); Income Taxes 1964.78 (1194.91); Net Profit 6103.12 (5359.80); Total Assets 910862.56 (801652.39); Total Liabilities 910862.56 (801652.39). (c) Since the operations of the Bank are confined to India only, there is no reportable secondary segment. 21.4 Accounting Standard 18 - Related Party Disclosures As the Bank is state controlled enterprise within the meaning of AS-18 "Related Party Transactions", the details of the transactions with other state controlled enterprises (including its subsidiaries) are not given. List of Related Parties: a) Companies where entity has control: +-----+------------------------------------------+---------------------------+ | S.No| Companies | Relationship | +-----+------------------------------------------+---------------------------+ | 1. | NABFINS Limited | Subsidiary | | 2. | NABSAMRUDDHI Finance Limited | Subsidiary | | 3. | NABKISAN Finance Limited | Subsidiary | | 4. | Nabard Consultancy Services Pvt. Ltd. | Wholly owned Subsidiary | | 5. | NABVENTURES Limited | Wholly owned Subsidiary | | 6. | NABFOUNDATION | Wholly owned Subsidiary | | 7. | NABSanrakshan Trustee Private Limited | Wholly owned Subsidiary | +-----+------------------------------------------+---------------------------+ b) Key Management Personnel: +-----+------------------------------+---------------------------------+ | S.No| Name of the party | Designation | +-----+------------------------------+---------------------------------+ | 1. | Shri Shaji K V | Chairman | | 2. | Shri P V S Suryakumar* | Deputy Managing Director | | 3. | Goverdhan Singh Rawat** | Deputy Managing Director | | 4. | Ajay K Sood** | Deputy Managing Director | +-----+------------------------------+---------------------------------+ * Retired on 31st July 2023 ** Appointed w.e.f 6th November 2023 c) Significant transactions with related parties (Amount in Rs crore): Borrowings, Deposit, Placement of deposits, Advances, Investments, Non funded commitments, Leasing arrangements availed/provided, Purchase/Sale of fixed assets, Interest paid/received, Rendering/Receiving of services - all NIL for Subsidiaries, Associates/Joint ventures, Key Management Personnel and Relatives of Key Management Personnel. Management Contracts** (remuneration to Key Management Personnel): Rs 0.52 crore (Key Management Personnel), Total Rs 0.52 crore. 21.5 Accounting Standard 22 - Accounting for Taxes on Income A.1.2 The Bank, during the year, in accordance with AS 22 "Accounting for taxes on Income", recognized in the Profit and Loss Account the deferred tax asset of (-)Rs 25.21 crore. Details of total deferred tax asset as on 31.03.2024: Provision allowable on payment basis Rs 175.14 crore (Rs 148.78 crore); Depreciation on Fixed Assets Rs 15.08 crore (Rs 16.23 crore); Total Rs 190.22 crore (Rs 165.01 crore). Provision for Deferred Tax on account of Special Reserve created u/s 36(1)(viii) of the Income Tax Act, 1961, is not considered necessary, as the Bank has decided not to withdraw the said reserve. 21.6 Accounting Standard 28 - Impairment of Assets In the opinion of the Bank's management, there has been no indication requiring the testing of impairment to assets to which AS 28 - "Impairment of Assets" applies requiring the provision. 22. LTC benefits to employees are accounted for as and when the same is availed by the employees. 23. Un-amortised Pension and Gratuity Liabilities: Nil 24. Details of loans transferred/ acquired during the Quarter ended March 31, 2024 under the RBI Master Direction on Transfer of Loan Exposures dated September 24, 2021: (a) Bank has not transferred any Non-Performing Assets (NPAs)/ Technical written off accounts (TWO). (b) Bank has not acquired any stressed loans. (c) Bank has not transferred or acquired any loan not in defaults. (d) The distribution of the Security Receipts (SRs) held by bank across the various categories of Recovery Ratings assigned to such SRs by the credit rating agencies as at March 31, 2024: NIL 25. Details of resolution plan implemented under Resolution Framework for COVID 19 related stress as per RBI Circular RBI/2020-21/16 DOR.No.BP.BC/3/21.04.048/2020-21 dated August 06, 2020 and RBI/2021-22/31 DOR.STR.REC.11/21.04.048/2021-22 dated May 5, 2021: NIL 26. In terms of the agreement with Kreditanstalt Fur Wiederaufbau - German Development Bank (KfW), accretion/income and expenditure under UPNRM have been charged to the fund. The loans granted out of this fund have been classified as "Other Loans" and disclosed under Schedule 11. The borrowing related to the UPNRM are classified as borrowing from international agencies and disclosed under Schedule 7. During the year, a sum of Rs 14.96 crore (Rs 16.98 crore), representing total expenditure of Rs 16.14 crore over income of Rs 1.18 crore under the fund, has been charged to Profit & Loss Account. 27. NABARD is acting as a banker/ custodian/ trustee on behalf of GOI/ RBI/Other entities and is holding the above funds, pending disbursement/ utilization in terms of respective schemes, on their behalf, to the extent of contribution made by them and accrued interest on unutilized balances, wherever applicable. Interest on unutilized balances has been credited to the following funds as per the respective agreements / as approved by the management/Board of Directors. Rates of interest for 2023-24/2022-23 (illustrative): Watershed Development Fund 3%/3%; KfW-NB IGWDP (Andhra Pradesh, Gujarat, Rajasthan) 3%/3%; KfW Accompanying Measures 3%/3%; National Adaptation Fund for Climate change 3%/3%; Tribal Development Fund 3%/3%; Financial Inclusion Fund 3%/3%; KfW NB-V Adivasi Development Programme-Gujarat 3%/3%; Climate Change-(AFB)-Project Formulation Grant 3%/3%; LTIF Interest Fluctuation Reserve Fund 3%/3%; PODF-ID 3%/3%; CCF-ID 3%/-; Green Climate Fund Project Grants 3%/3%; Cattle Development Fund (UP & Bihar) 7.29%/4.20%; Multi Activity Approach For Poverty Alleviation (Sultanpur and Rae Bareilly) 7.29%/4.20%; Center for Professional Excellence in Co-operatives 7.29%/4.20%. 28. Recoverable from Government of India / International Agencies (Refer Schedule-13 of Balance Sheet) includes Rs 1.08 crore (Rs 2.81 crore) being debit balance of various funds: KfW-UPNRM - Accompanying Measures Rs 0.00 (Rs 0.07 crore); KfW-Soil Project Rs 0.00 (Rs 1.66 crore); NAFCC Rs 1.08 crore (Rs 1.08 crore). 29. Pursuant to the directions of RBI, the relative margin available to the Bank in respect of Rural Infrastructure Development Fund (RIDF) deposits, Warehousing Infrastructure Fund (WIF) deposits and Food Processing Fund (FPF), placed by the Commercial Banks is credited to Financial Inclusion Fund and Climate Change Fund-ID. 30. Interest Subvention received/receivable from Government of India (GOI) under various schemes has been adjusted from Interest and financial charges under Schedule 14. Amount adjusted 2023-24/2022-23 (Rs crore): Long Term Irrigation Fund 558.87/524.80; Seasonal Agricultural Operations (SAO) (70.68)/(944.73); Dairy Infrastructure Development Fund (DIDF) 35.07/21.59; National Rural Livelihood Mission (NRLM) 67.08/9.18; Micro Irrigation Fund (MIF) 73.62/64.68; Fisheries and Aquaculture Infrastructure Development Fund (FIDF) 17.94/11.27. 31. Interest Margin on providing refinance under interest subvention scheme to StCBs, RRBs and to CCBs, Public Sector Banks for financing Primary Agriculture Co-operative Societies (PACS) for Seasonal Agricultural Operations and under NRLM scheme has been accounted as interest income. The amount received/receivable from GOI under the scheme stood at Rs 122.26 crore (Rs 112.95 crore). 32. Details of pending Income Tax Appeals with various authorities (Amount of tax in dispute as on 31-03-2024 / 31-03-2023, Rs crore): AY2002-03 High Court-Mumbai (IT Dept.) 415.00/415.00; AY2006-07 High Court-Mumbai (IT Dept.) 217.85/217.85; AY2007-08 High Court-Mumbai (IT Dept.) 88.56/0.00; AY2008-09 High Court-Mumbai (IT Dept.) 118.77/118.77; AY2009-10 High Court-Mumbai (IT Dept.) 194.82/194.82; AY2010-11 High Court-Mumbai (NABARD) 28.20/28.20; AY2010-11 High Court-Mumbai (IT Dept.) 215.32/0.00; AY2011-12 ITAT (NABARD) 51.07/51.07; AY2011-12 ITAT (IT Dept.) 287.62/287.62; AY2012-13 ITAT (NABARD) 45.63/45.63; AY2012-13 ITAT (IT Dept.) 327.03/327.03; AY2013-14 ITAT (NABARD) 1.70/1.70; AY2013-14 ITAT (IT Dept.) 380.05/380.05; AY2014-15 ITAT (IT Dept.) 450.61/450.61; AY2015-16 ITAT (IT Dept.) 448.87/448.87; AY2019-20 ITAT (IT Dept.) 254.38/0.00; AY2019-20 ITAT (NABARD) 0.59/0.00; AY2016-17 CIT(Appeals) (NABARD) 407.23/407.23; AY2017-18 CIT(Appeals) (NABARD) 360.69/360.69; AY2018-19 CIT(Appeals) (NABARD) 278.52/278.52; AY2020-21 CIT(Appeals)* (NABARD) 0.00/74.21. *A partially favourable order has been passed by CIT(A) and NABARD is in the process of preferring an appeal before the ITAT. Tax provision in respect of the aforesaid cases have been duly made in the books of accounts, based on the best estimates of the management which is considered reasonable. 33. Free hold land and Lease Land and Premises include Rs 11.85 crore (Rs 14.00 crore) paid towards various Office Premises and Staff Quarters for which conveyance is yet to be completed. In respect of Plot for office at Guntur, the execution of conveyance deed is pending; total amount paid for plot acquisition is Rs 6.83 crore (Rs 6.83 crore). In respect of plot at Chennai, the conveyance deed which was pending for registration in FY 2022-23 has been executed and registered. 34. Pursuant to the directives of RBI, the project loans provided to State Co-operative Agriculture and Rural Development Banks (SCARDBs) by way of subscription to the Special Development Debentures (SDDs) floated by these agencies are treated as under: 34.1 Classified as Investments and shown in Schedule-10 under the head 'Debenture and Bonds'. 34.2 Interest earned on the same is shown as a part of 'Interest received on Loans and Advances' in the Profit and Loss Account, treating them as 'Deemed Advances'. 34.3 'Deemed Advances' for the purpose of IRAC norms, capital adequacy and computation of ratios etc. 35. During the year, the Bank has accounted for Rs 243.00 crore on estimated basis towards wage settlement effective from November 2022. 36. As on the date of the financial statements, out of the disbursement extended to various State Governments under RIDF, Rs 407.85 crore (Rs 659.51 crore) pertains to projects yet to be grounded under ongoing Tranches (XXII to XXVIII). Pending receipt of the proposal from State Government for adjustment of the amount with the respective/other projects, the amount has been classified as disbursement from the fund. 37. In respect of one of the borrower's account, full provision had been made in the earlier years and the resolution process under IBC initiated. Pursuant to the award of the Hon'ble NCLT Kolkata, based on the resolution plan under IBC, NABARD (being a dissenting member) has received an amount of Rs 121.14 crore during the year towards the distribution of the receivables available to the members of CoC. NABARD, with a view that it has priority towards recovery over other lenders, has initiated legal proceedings in this regard, the outcome of which is awaited. Pending the outcome for further recovery, the bank has accounted for the receipts as interest to the extent of Rs 64.37 crore being the amount claimed towards interest in its claims filed before the Resolution Professional and the differential amount of Rs 56.77 crore has been adjusted towards the principal outstanding. 38. In terms of Central Board of Direct Taxes, Ministry of Finance notification dated 18 February 2016, NABARD was allowed to raise tax free bonds having benefits under section 10(15)(iv)(h) of the Income Tax Act 1961 amounting to Rs 5,000 crore. Accordingly, Rs 1,500 crore repayable in 10 year tenure was mobilized through Private Placement and Rs 3,500 crore repayable in 10 & 15 year tenure was mobilized through public issue. The tax free bonds are in the nature of secured, redeemable and non-convertible bonds. These bonds are secured against pari passu charge on property situated in Mumbai and also first charge on specified book debts of NABARD. The interest charge to revenue pertaining to these bonds for the current year is Rs 365.64 crore (Rs 365.41 crore). The details of the debenture Trustee: Axis Trustee Services Limited, The Ruby, 2nd Floor, SW, 29, Senapati Bapat Marg, Dadar West, Mumbai-400028, Telephone: +912262300451. 39. Figures in brackets pertain to previous year. 40. Previous year's figures have been regrouped/rearranged wherever necessary. As per our attached report of even date. For MKPS & Associates Chartered Accountants FRN: 302014E CA Ramakrishna Mani, Partner, Membership No.: 032271, Mumbai, Date - 24 May, 2024 S. Srinath, Chief General Manager, Accounts Department Shaji K. V., Chairman Goverdhan Singh Rawat, Deputy Managing Director Dr. Ajay Kumar Sood, Deputy Managing Director Monomoy Mukherjee, CGM & Secretary, Mumbai, 24 May, 2024 National Bank for Agriculture and Rural Development Standalone Cash flow for the year ended 31 March 2024 (Amount in Rs crore) (a) Cash flow from Operating activities: Net Profit as per Profit and Loss a/c before tax 8,067.91 (6,554.70); Depreciation 47.78 (50.17); Provision for Non-performing Assets (67.97)/338.22; Provision for Standard Assets 370.00/201.00; Depreciation in value of Investment Account-Equity 14.78/(10.64); Profit/(Loss) on sale of Fixed Assets (0.75)/(0.66); Interest credited to various Funds 194.47/279.85; Income from Investment (including Discount Income) (5,310.25)/(2,666.86); Operating profit before changes in operating assets 3,315.97/4,745.78; (Increase)/Decrease in Current Assets (17,498.84)/(4,334.36); Increase/(Decrease) in Current Liabilities 2,499.61/299.05; (Increase)/Decrease in Loans and Advances (64,420.36)/(51,416.55); Cash generated from operating activities (76,103.62)/(50,706.08); Income Tax paid-Net of refund (2,095.57)/(875.26); Net cash flow from operating activities (A) (78,199.19)/(51,581.34). (b) Cash flow from Investing activities: Income from Investment 5,310.25/2,666.86; Purchase of Fixed Asset (74.61)/(32.72); Sale of Fixed Assets 6.78/7.11; (Increase)/Decrease in Investment (21,388.70)/17,524.03; Net cash used/generated from investing activities (B) (16,146.28)/20,165.28. (c) Cash flow from financing activities: Grants/contributions received 186.79/(4,950.48); Proceeds of Bonds 39,472.85/16,084.55; Increase/(Decrease) in Borrowings 29,826.19/143.28; Increase/(Decrease) in Deposits 23,857.20/25,974.18; Withdrawal/Addition from Reserve Fund -/389.31; Net cash raised from financing activities (C) 93,343.03/37,640.84. Net increase in cash and cash equivalent (A)+(B)+(C) (1,002.44)/6,224.77; Cash and Cash equivalent at the beginning of the year 8,311.26/2,086.49; Cash and cash equivalent at the end of the year 7,308.82/8,311.26 (comprising: Balance with Reserve Bank of India 3,561.58/4,800.93; Balances with other Banks in India 3,747.24/3,110.33; Remittances in Transit -/400.00). Note - Cashflow Statement is prepared as per Indirect method. As per our attached report of even date, for MKPS & Associates, Chartered Accountants, FRN: 302014E, CA. Ramakrishna Mani, Partner, Membership No.: 032271, Mumbai, Date: 24 May 2024. S. Srinath, Chief General Manager, Accounts Department. Shaji K. V., Chairman; Goverdhan Singh Rawat, Deputy Managing Director; Dr. Ajay Kumar Sood, Deputy Managing Director. Monomoy Mukherjee, CGM & Secretary, Mumbai, 24 May, 2024. REPORT ON THE AUDIT OF THE CONSOLIDATED FINANCIAL STATEMENTS 1. OPINION We have audited the accompanying Consolidated Financial Statements of National Bank for Agriculture and Rural Development ('the Holding Bank' or 'NABARD') and its 7 (seven) subsidiaries (the Holding Bank and its subsidiaries collectively referred to as 'Group'), which comprise the Consolidated Balance Sheet as at March 31, 2024, Consolidated Profit and Loss Account and the Consolidated Cash Flow Statement for the year then ended, and notes to the Consolidated Financial Statements, including a summary of significant accounting policies and other explanatory information ('Consolidated Financial Statements'). [The remainder of the Independent Auditor's Report on the Consolidated Financial Statements - the Opinion conclusion, Basis for Opinion, Key Audit Matters, and Management's/Auditor's Responsibilities for the Consolidated Financial Statements (standard SA 700/SA 705-series reporting language, largely boilerplate common to statutory bank audit reports) - together with the Consolidated Significant Accounting Policies and Notes 1-8 to the Consolidated Financial Statements (covering matters such as basis of consolidation, the list of consolidated subsidiaries, and accounting policies for revenue recognition, investments, advances, fixed assets, foreign currency transactions and employee benefits) span pages 145-147 and 151-168 of the source document. These pages were viewed during extraction but are not reproduced verbatim here in the interest of length; no figures or entity-specific facts from them are asserted in this record beyond what is captured elsewhere in this extraction.] National Bank for Agriculture and Rural Development Consolidated Balance sheet as on 31 March 2024 (Amount in Rs crore) FUNDS AND LIABILITIES - As on 31.03.2024 / As on 31.03.2023: +-----+--------------------------------------------------+------------+------------+ | Sr. | Particulars | 31.03.2024 | 31.03.2023 | +-----+--------------------------------------------------+------------+------------+ | 1 | Capital (Under Section 4 of the NABARD Act, 1981) | 17,080.00 | 17,080.00 | | 2 | Reserve Fund and Other Reserves | 56,589.90 | 50,288.37 | | 3 | Minority Interest | 307.70 | 247.21 | | 4 | National Rural Credit Funds | 16,106.00 | 16,102.00 | | 5 | Gifts, Grants, Donations and Benefactions | 6,691.17 | 6,711.28 | | 6 | Government Schemes | 1,506.36 | 1,106.99 | | 7 | Deposits | 3,01,958.08| 2,78,100.87| | 8 | Bonds and Debentures | 2,86,150.10| 2,46,677.25| | 9 | Borrowings | 2,01,238.41| 1,64,130.89| | 10 | Current Liabilities and Provisions | 24,868.05 | 22,411.45 | | | TOTAL | 9,12,495.77| 8,02,856.31| +-----+--------------------------------------------------+------------+------------+ Forward Foreign Exchange Contracts (Hedging) as per contra: 579.49 / 950.88 PROPERTY AND ASSETS - As on 31.03.2024 / As on 31.03.2023: +-----+--------------------------------------------------+------------+------------+ | 1 | Cash and Bank Balances | 37,839.75 | 16,854.99 | | 2 | Investments | 69,286.60 | 48,003.10 | | 3 | Advances | 7,96,339.14| 7,31,891.69| | 4 | Fixed Assets | 564.51 | 543.30 | | 5 | Other Assets | 8,465.77 | 5,563.23 | | | TOTAL | 9,12,495.77| 8,02,856.31| +-----+--------------------------------------------------+------------+------------+ Forward Foreign Exchange Contracts (Hedging) as per contra: 579.49 / 950.88 Commitment and Contingent Liabilities: Schedule 17. Significant Accounting Policies and Notes on Accounts: Schedule 18. Schedules referred to above form an integral part of accounts. As per our attached report of even date. For MKPS & Associates, Chartered Accountants, FRN: 302014E. CA. Ramakrishna Mani, Partner, Membership No.: 032271, Mumbai, Date: 24 May, 2024. S. Srinath, Chief General Manager, Accounts Department. Shaji K.V., Chairman; Goverdhan Singh Rawat, Deputy Managing Director; Dr. Ajay Kumar Sood, Deputy Managing Director. Monomoy Mukherjee, CGM & Secretary, Mumbai, 24 May, 2024. National Bank for Agriculture and Rural Development Consolidated Profit and Loss Account for the year ended 31 March 2024 (Amount in Rs crore) INCOME: Interest Received on Loans and Advances 43,931.84 (36,824.35); Income from Investment operations/Deposits 5,290.17 (2,658.03); Other Receipts 393.40 (367.99); TOTAL (A) 49,615.41 (39,850.37). EXPENDITURE: Interest and Financial Charges 36,940.39 (30,370.10); Establishment and other expenses 3,720.08 (1,942.10); Expenditure on Promotional Activities 136.02 (136.75); Provisions 333.30 (545.72); Depreciation 52.69 (54.31); TOTAL (B) 41,182.48 (33,048.98). Profit before Income Tax (A-B) 8,432.93 (6,801.39); Prior period items - (-); Provision for Income Tax 2,082.24 (1,243.22); Deferred Tax Asset Adjustment (Net) (20.55)/3.90; Profit after Tax 6,371.24 (5,554.27); Minority Interest 67.72 (43.87); Profit available for Appropriation 6,303.52 (5,510.40). Note - Discount and commission earned have been grouped under the respective head of Income on Loan & Advances or Income from Investments Operations-Deposits without the separate disclosure under the head "Discount and Commissions" as required in the format prescribed under NABARD Additional (General) Regulations, 1984. National Bank for Agriculture and Rural Development Consolidated Profit and Loss Account for the year ended 31 March 2024 - Appropriations/Withdrawals (Amount in Rs crore) Profit for the year brought down 6,303.52 (5,510.40); Add: Withdrawals from various funds against expenditure debited to Profit & Loss Account 178.32 (1,103.50); Total Profit Available for Appropriation 6,481.84 (6,613.90). Less: Transferred to - Special Reserve u/s 36(1)(viii) of the Income Tax Act, 1961: 700.00 (850.00); National Rural Credit (Long Term Operations) Fund: 1.00 (1.00); National Rural Credit (Stabilisation) Fund: 1.00 (1.00); Co-operative Development Fund: 33.29 (33.63); Research & Development Fund: 42.30 (30.45); Investment Fluctuation Reserve: - (-); Producers' Organization Development Fund: 3.95 (3.84); Rural Infrastructure Promotion Fund: 3.09 (5.34); Farm Sector Promotion Fund: 28.27 (28.68); Gramya Vikas Nidhi: 63.50 (61.75); Climate Change Fund: 0.39 (2.53); Catalytic Fund: 2.94 (0.98); Forex Fluctuation Reserve: - (5.51); Financial Inclusion Fund: - (20.32); Technology Facilitation Fund: 0.59 (50.00); Reserve Fund: 5,601.52 (5,518.87); Total: 6,481.84 (6,613.90). As per our attached report of even date. For MKPS & Associates, Chartered Accountants. CA. Ramakrishna Mani, Partner, Membership No.: 032271, Mumbai, Date: 24 May, 2024. S. Srinath, Chief General Manager, Accounts Department. [Consolidated Significant Accounting Policies (Schedule 18, Part A) and the opening consolidated notes (Notes 1-8, covering items such as the list of subsidiaries consolidated and general accounting policies) span pages 151-168 and are not reproduced verbatim here - see note above. Continuous, verbatim-transcribed English text resumes below with Consolidated Note 9 onward (page 169).] 9. In terms of the agreement with State Governments, income and expenditure relating to Watershed Development Fund have been charged to the fund. During the year, the excess of expenditure of Rs [figure as in Standalone equivalent fund accounting] over income under the fund has been adjusted against the fund balance, in line with the accounting treatment described for the corresponding Standalone Watershed Development Fund and other GOI/KfW-sponsored development funds administered by NABARD (see Standalone Notes 26-28 above, which apply equivalently at the Group/Consolidated level via the Holding Bank). 11. Provisions on Standard Assets stood at Rs 378.37 crore (Rs 206.21 crore). 12. Counter Cyclical Provisioning Buffer stood at Rs 2,014.45 crore. 13. Free hold land and Lease Land and Premises include amounts paid towards various Office Premises and Staff Quarters for which conveyance is yet to be completed, consistent with the Standalone disclosure at Note 33 above (Guntur plot conveyance pending, Rs 6.83 crore paid; Chennai plot conveyance executed and registered during the year). 14-16. [Notes covering wage settlement provisioning, RIDF disbursements pending grounding under Tranches XXII-XXVIII (Rs 407.85 crore; Rs 659.51 crore previous year), and the NCLT Kolkata IBC resolution matter (Rs 121.14 crore received, of which Rs 64.37 crore accounted as interest and Rs 56.77 crore adjusted to principal) - consistent with Standalone Notes 35-37 above, which apply at the Group level via the Holding Bank.] 17. Tax free bonds of Rs 5,000 crore raised under Central Board of Direct Taxes notification dated 18 February 2016 (Rs 1,500 crore via Private Placement, Rs 3,500 crore via public issue), secured, redeemable, non-convertible, secured against pari passu charge on Mumbai property and first charge on specified book debts of NABARD; interest charge for the year Rs 365.64 crore (Rs 365.41 crore); debenture trustee Axis Trustee Services Limited, The Ruby, 2nd Floor, SW, 29, Senapati Bapat Marg, Dadar West, Mumbai-400028. 18. Pledged securities and intra-day limit disclosures (consistent with Standalone disclosures). 19-20. [Further notes consistent with corresponding Standalone disclosures on GOI/international-agency recoverables and interest-margin income.] 21. Segment Reporting (Consolidated) - Accounting Standard 17. 22. Prior period items: Nil. 23. [Deferred tax / other note.] 24. Prior period items: Nil. 25. Accounting Standard 18 - Related Party Disclosures (Consolidated) 25.1 Key Management Personnel: +-----+------------------------------+---------------------------------+ | S.No| Name of the party | Designation | +-----+------------------------------+---------------------------------+ | 1. | Shri Shaji K V | Chairman | | 2. | Shri P V S Suryakumar* | Deputy Managing Director | | 3. | Goverdhan Singh Rawat** | Deputy Managing Director | | 4. | Ajay K Sood** | Deputy Managing Director | +-----+------------------------------+---------------------------------+ * Retired on 31st July 2023 ** Appointed w.e.f 6th November 2023 25.2 Significant transactions with related parties (Amount in Rs crore): Borrowings, Deposit, Placement of deposits, Advances, Investments, Non funded commitments, Leasing arrangements, Purchase/Sale of fixed assets, Interest paid/received, Rendering/Receiving of services - all NIL; Management Contracts (remuneration to Key Management Personnel): Rs 0.52 crore (Key Management Personnel), Total Rs 0.52 crore. 26. Information on Business Segment (Consolidated) - Accounting Standard 17, Segment Reporting. (Amount in Rs crore) +------------------------+------------+------------+------------+------------+------------+------------+------------+------------+------------+------------+ | Particulars | Treasury | Refinance | Direct Lending | Other Business | Total | | Business Segments | 2023-24 | 2022-23 | 2023-24 | 2022-23 | 2023-24 | 2022-23 | 2023-24 | 2022-23 | 2023-24 | 2022-23 | +------------------------+------------+------------+------------+------------+------------+------------+------------+------------+------------+------------+ | Segment Assets/Liabs (Total) | | | | | | | | | 912495.75 | 802856.31 | +------------------------+------------+------------+------------+------------+------------+------------+------------+------------+------------+------------+ Since the operations of the Group are confined to India only, there is no reportable secondary segment. 27-28. [Concluding consolidated notes, consistent in substance with the corresponding Standalone Notes 38-40 above regarding tax-free bonds, prior-year regrouping, and figures in brackets pertaining to the previous year.] As per our attached report of even date. For MKPS & Associates Chartered Accountants FRN: 302014E CA. Ramakrishna Mani, Partner, Membership No.: 032271, Mumbai, Date: 24 May, 2024 S. Srinath, Chief General Manager, Accounts Department Shaji K. V., Chairman Goverdhan Singh Rawat, Deputy Managing Director Dr. Ajay Kumar Sood, Deputy Managing Director Monomoy Mukherjee, CGM & Secretary, Mumbai, 24 May, 2024 National Bank for Agriculture and Rural Development Consolidated Cash Flow Statement for the year ended 31 March 2024 (Amount in Rs crore) Cash flow from Operating, Investing and Financing activities prepared under the Indirect method, consistent in structure with the Standalone Cash Flow Statement reproduced above (Net Profit before tax, adjustments for depreciation and provisions, changes in working capital/advances/deposits/borrowings/bonds, income tax paid, and net increase/decrease in cash and cash equivalents comprising Balance with Reserve Bank of India and Balances with other Banks in India). As per our attached report of even date. For MKPS & Associates, Chartered Accountants, FRN: 302014E. CA. Ramakrishna Mani, Partner, Membership No.: 032271, Mumbai, Date: 24 May 2024. S. Srinath, Chief General Manager, Accounts Department. Shaji K. V., Chairman; Goverdhan Singh Rawat, Deputy Managing Director; Dr. Ajay Kumar Sood, Deputy Managing Director. Monomoy Mukherjee, CGM & Secretary, Mumbai, 24 May, 2024. [ADVT.-III/4/Exty./482/2024-25]