SpaceX fires Falcon engines before Monday launch

SpaceX fires Falcon engines before Monday launch

 

SpaceX led Thursday 6 hours for its first restart of a rocket Falcon 9 is used, a mission that aims to create a commercial satellite in orbit from the Kennedy Space Center.

The Monday rocket launch teams fed in two stages during the practice countdown that led to a 2-test per test. 100, designed to last for about three seconds, nine key drivers in Merlin’s 39SC KSC Launch Complex.

Delays in conducting this “static fire” test on the weekend pushed the Tuesday launch of SES-10 satellite communication a day.

If the test results are good, the mission must be on the way from a Thursday from 6am to open a window of two and a half hours.

There is 70 percent. 100 probability of having a favorable time during the window, according to the Air Force 45 time square. The odds are slightly less than 60 percent on Friday, the day of the mission’s launch.
The first stage of the Falcon rocket tested Monday is a veteran of this business. For almost a year, the stage has spurred the supply path to the International Space Station for NASA.

SpaceX has landed the amplifier on a ship in the Atlantic Ocean and has renewed for a second flight – the company’s first attempt to control what it calls a Falcon “stolen in evidence” amplifier.

A Thursday by the launch would be a relatively quick spin on SpaceX at its most recent launch site, two weeks after a Falcon 9 launched the commercial EchoStar 23 satellite of the KSC block.

Since its return to flight in January, more than four months after a Falcon 9 has fired launching complex 40 from the Cape Canaveral Air Force Station, SpaceX’s target is run as often every two or three weeks this year.

Meanwhile, the United Launch Alliance continued Monday to solve a problem with the main engine of an Atlas V rocket. A problem that delayed the launch of an Orbital Cygnus ATB to the International Space Station for NASA.

The mission will not fly at the Air Force Station in Cape Canaveral attempts before the launch of SpaceXSpaceX ciblait jeudi 6 heures pour son premier relancement d’une roquette Falcon 9 utilisée, une mission qui vise à creé a satellite commercial en orbite depuis Le Kennedy Space Center.

The equipment of lancement ont the lundi la fusée in deux étapes lors d’un decompte de pratique qui a abouti à une épreuve de test de 2 p. 100, destinée à durer environ trois secondes, de neuf moteurs principaux de Merlin dans le complexes de lancement 39SC de KSC.

Les retards dans la réalisation de ce test “feu statique” au cours du week-end ont poussé le lancement mardi prochain du satellite de communication SES-10 à un jour.

If they are résultats du test sont bons, the mission devrait être sur la bonne voie pour un départ de jeudi de 6h à l’ouverture d’une fenêtre de deux heures et demie.

Il and at 70 p. 100 of chance d’avoir du temps favorable pendant la fenêtre, selon le 45e escadron météorologique de la Force aérienne. Les chances sont légèrement inférieures à 60 pour cent vendredi, the journée de lancement de la mission.
The première étape de la fusée Falcon testée lundi est un vétéran de cette activité. In addition, it is permissible to encourage the appro- priations of the space station internationale for NASA.

SpaceX to be amplified by a navire dans l’océan Atlantique et l’a rénové pour un deuxième vol – the tentative premier of the compagnie de piloter ce qu’il appelle a amplificateur Falcon «volé en preuve».

A lancement will be a relativement for the spaceX sur site of lancement le plus récent, deux semaines après qu’un Falcon 9 a leancé le commercial commercial EchoStar 23 du même bloc KSC.

Depuis en retour en vol en janvier, plus de quatre mois après qu’un Falcon 9 to explode au Lancer Complex 40 de la station de la Force aérienne de Cap Canaveral, l’objectif de SpaceX est de lancer aussi souvent toutes les deux ou trois Semaines cette année.

In attendance, the United Launch Alliance was to continue lundi à résoudre a problème avec le moteur principal d’une fusée Atlas V. A problème that delayed the launch of an Orbital vessel ATK Cygnus to the Station spatiale internationale pour la NASA.

La mission ne volera pas de la station de la Force aérienne de Cap Canaveral avant les temptations de lancement de SpaceXSpaceX dirigido Jueves 6 horas para su primer reinicio de un cohete Falcon 9 se utiliza, una misión que tiene como objetivo crear un satélite comercial en órbita desde el Centro Espacial Kennedy.

Los equipos de lanzamiento de cohetes Lunes alimentaron en dos etapas durante la cuenta regresiva práctica que condujo a una prueba de 2 por prueba. 100, diseñados para durar durante unos tres segundos, nueve conductores clave en Merlin 39SC KSC complejo de lanzamiento.

Los retrasos en la realización de esta prueba “fuego estático” el fin de semana empujaron el lanzamiento martes de comunicación por satélite SES-10 al día.

Si los resultados de la prueba son buenos, la misión debe estar en camino de un jueves a partir de las 6 am abrir una ventana de dos horas y med

Pentagon gets authority to set US ‘troop levels’ in Afghanistan

Pentagon gets authority to set US ‘troop levels’ in Afghanistan

Pentagon gets authority to set US ‘troop levels’ in Afghanistan

The United States currently has about 8,400 troops in Afghanistan. Army General John Nicholson told Congress he could use an infusion of United States and Allied troops to support the Afghan army.

US President Donald Trump told Defense Minister James Mattis the power to determine troop levels in Afghanistan, the media said Wednesday, paving the way for more US forces to be deployed in the torn country by the war. Such permission was granted by Mattis Trump.

Mattis, according to The New York Times, is supposed to facilitate the deployment of thousands more troops to Afghanistan, but has not made a final decision on the matter. Neither the White House nor the Pentagon have confirmed the news.

“I have nothing that I can comment on right now. See you Secretary Mattis at that time,” said White House deputy reporter Sarah Sanders told reporters.

The United States currently has about 8,400 troops in Afghanistan. Army General John Nicholson, the US commander in Afghanistan, told Congress he could use an infusion of US and Allied troops to support the Afghan army.

Earlier this year, the Pentagon was considering a demand for an additional 3,000 soldiers, mainly for training and consulting. This decision, however, was blocked by examining the wider administration of NATO policy and pressure to contribute more Afghan troops.

This opens the way for US commanders to begin sending more forces in Afghanistan after years of cuts made in the hope that Kabul can handle the internal threats by himself.

Mattis, a former commander of all Middle East wars, said Tuesday that the United States did not win the war in Afghanistan.
“We do not win in Afghanistan now,” Mattis said, adding that “finding a solution as soon as possible.”

Mattis is described later victory in Afghanistan as the central government, with international aid, “will be able to handle violence.”

The new four-star general promotion in the retired Navy comes as Congress became increasingly anxious for a new Trump Administration strategy for America’s longest war while the Taliban will continue to go out into the field and to increase power , Including the launch of coordinated attacks on US troops and journalists in recent weeks.

The Afghan war has lasted since October 2001 and the US-led coalition has ended its combat mission against the Taliban in 2014, but is increasingly involved in supporting Afghan forces in the battlefield.

Singapore PM Lee Hsien Loong’s siblings fear for safety, denounce him over abuse of power

Singapore PM Lee Hsien Loong’s siblings fear for safety, denounce him over abuse of power

Singapore PM Lee Hsien Loong’s siblings fear for safety, denounce him over abuse of power

Singapore: A dispute between Singapore Prime Minister Lee Hsien Loong and his brothers are out in the open, revealing the deep divisions in the first family after accusing the Prime Minister of abuse of power and exploitation the legacy of Lee Kuan Yew, the founding leader of the city-state.

Prime Minister Lee Hsien Yang’s brother said in a Facebook statement that he was leaving Singapore, citing Hsien Loong as the sole reason for his departure.

“Since the death of our father (Lee Kuan Yew) in 2015, we felt threatened by the misuse Hsien Loong in his position and his influence on government agencies and Singapore to blow up his personal agenda,” said Hsien Yang and his sister Wei Ling said.

In the statement, titled “What Happened to Lee Kuan Yew’s Values?” Hsien Yang said that he, his wife and his sister Wei Ling feared “the use of state organs” against them.

The two brothers have accused their brother, Lee Hsien Loong, 65, of harboring political ambitions for his son, Li Hongyi, who works as a consultant for a Singapore government agency.

“If he prepares Hsien Loong to act against us, his little sister and his brother, both taxpayer members staying in Singapore to advance in their personal agenda, we care for Singapore.

We wonder if competent leaders with independent political legitimacy will be forced to ensure Hsien Loong seized power remains unanswered, “the statement said.

Instead of demolishing the house Kuan Yew that the former leader wished the prime minister tried to make his home personal residence – a move that would strengthen his political capital, according to the statement.

The founding father of Singapore, Kuan Yew wanted the family home, a bungalow in the Orchard district, to be demolished after his death, when it was to become a monument.

The Prime Minister and his wife, Ho Ching, CEO of Temasek Holdings, Singapore’s 196 billion-dollar sovereign fund, also raised political ambitions for his son Li Hongyi, the statement said.

The President of the Government, currently abroad with his family, has denied the allegations made by his brothers and said that he was “very disappointed” that they chose to publish a press release the publication of private family matters.

“Ho Ching and I deny these allegations, in particular the absurd claim that I have political ambitions for my son,” Lee said in a statement released by the prime minister’s office on his Facebook page.

“I am deeply saddened by the unfortunate accusations they made. Ho Ching (my wife) and I deny the
The allegations, particularly the absurd claims that I have political ambitions for my son, “Lee said.

“While siblings may have differences, I believe that these differences should remain in the family. Since my father’s death in March 2015, as an eldest son, I did everything possible to resolve problems between us in the family, respect for Our parents, “the prime minister said.

“The statement of my brothers and sisters hurt our father’s inheritance,” he said.

He said he was going to do everything he could to keep making his own parents. At the same time, he would continue to serve the Canadian Singapore “honesty” and to the extent of his ability.

“In particular, this means defending meritocracy, which is a fundamental value in our society,” the prime minister said.

Premier 65 had previously told parliament that he intended to fulfill his father’s wishes and evade any decision made by the house government.

The dispute in Singapore’s first family was made public in 2016 after the prime minister’s sister accused him of abusing his political power to Lee’s birthday commemorations.

The family fault is a rare public appearance of sharpness in the upper part of the tightly controlled city-state, where the limits of freedom of expression are vigorously controlled.

American student released from North Korea prison arrives in US

American student released from North Korea prison arrives in US

American student released from North Korea prison arrives in US

WASHINGTON: An American student who fell into a coma while imprisoned in a North Korean labor camp returned to the United States Tuesday night after Pyongyang allowed him to be taken home, US media reported.
A military plane with Otto Warmbier landed in his hometown of Cincinnati, Ohio, shortly before 10:20 pm (02:20 am Wednesday), CBS News reported.

Warmbier’s 18-month release from a 15-year sentence came as US President Donald Trump invited Korea’s new chief, Moon Jae-in, in Washington to hold talks on escalating stagnation over Korea’s nuclear program northern.

Secretary of State Rex Tillerson said earlier on the day his agency had “secured” the 22-year release in talks with North Korea and support three other Americans to be released. It was not immediately clear if concessions had been made.

The news was released after the NBA’s amazing basketball test, Dennis Rodman, a former contestant on the reality show Trump Celebrity Apprentice.

He flew to Pyongyang to resume his quest for relaxation between his American hometown and the authoritarian regime of Kim Jong-un.

However, State Department spokesman Heather Nauert said the visit “had nothing to do with the publication.”
Parents Warmbier, Fred and Cindy, said their statement Tuesday in a statement to CNN.

“Unfortunately, he’s in a coma and told us he was in this condition from March 2016,” they said. “We have learned that there is only one week.”

Arriving at Lunken Cincinnati airport, Warmbier was taken to an ambulance that precipitated Cincinnati University of Medicine for emergency treatment center, Fox News said.

Warmbier’s parents were informed that their son had been given a sleeping pill soon after his trial in March last year and never woke up.

US officials have declined to comment on his condition,
but former ambassador and New Mexico Gov. Bill Richardson said he had spoken to the family.

“Otto has been in a coma for more than a year and needs a proper medical emergency in the United States,” said Richardson, who previously served as special envoy to North Korea and continues to work on prisoner issues.

“We have received a call from Cindy and Fred Warmbier early today to catch up on Otto’s condition. To make it clear, North Korea must explain the causes of its coma.”
Tillerson told the senators at the beginning of a budget hearing that the State Department had no comment on the situation of M. Warmbier “out of respect for him and his family.”

The United States accused the North of using Warmbier as a political pawn, which condemns the sentence to be disproportionate in relation to the alleged crime.

The announcement came amid tensions between Washington and Pyongyang after a series of missile tests by the North, drawing attention to the accumulation of weapons that Pentagon chief Jim Mattis called today “a clear and present danger for all.”

Almost immediately after taking office in January Trump and his team – were briefed by current President Barack Obama – said North’s attempts to build, test and build a nuclear-capable ballistic missile are Washington’s biggest threat.

Washington has stepped up pressure on China and other foreign powers to impose existing UN sanctions and military assets deployed in the region.
Next to this track, the man of basketball Rodman arrived at Pyongyang Blasone wore a shirt of a cryptocurrent established for the marijuana.

The star visited the Stalinist state at least four times, the last in 2014, when he drew a barrage of criticism after being filmed singing his happy birthday to his “lifelong friend,” leader Kim.

Live Watch: Several killed in massive London fire

Live Watch: Several killed in massive London fire

Live Watch: Several killed in massive London fire

LONDON – People were killed in a major fire that has passed through a high-rise building in West London early Wednesday morning, the London Fire Commissioner said, though he could not say how. At least 30 people were sent to hospitals.

The flames shot from the windows to the end of the 24-storey Grenfell Tower in North Kensington as firefighters battled the fire and a pillar of smoke could be seen for several miles.

The cause of the fire was not immediately known. Residents said it seemed to start in an apartment on the ground floor and spread quickly.

“At this time, I am very sad to confirm that there have not been a number of deaths, I can not confirm the number at this time, due to the size and complexity of this building” Dany said Cotton, Commissioner for London Firefighters.
Fire teams have reached the 20th floor
A structure engineer checks the stability of the tower, the fire department said on Wednesday.

“We have a structure engineer, who, along with my search and rescue consultant, oversees the stability of the ship,” said Mrs. Cotton.

“At this time, the building is still safe for our teams are going to work.”

Ms. Cotton also said the crews had reached the 19 and 20 floors of the building so far.

The High India Commission replied:
The High Commissioner of India in London issued assistance numbers for all Indians affected by the fire:

Fire and frenzy
This incident is likely to fuel the frenzied and highly charged political debate of emotions in Britain, highlights many problems – management (and fire safety regulations) blocks the tachometer, problems related to inequality and affordable housing in The center of London.

According to the London poverty data collected by the New Kensington and Chelsea Policy Institute, the London borough where Grenfell is located, is the most affordable London city to rent. This allows high rates of people placed in a temporary housing.

As terrorist attacks have drawn attention to the cuts to the police, the Grenfell tragedy is likely to draw attention to the London fire brigade, including closing 10 fire stations and removing 500 firefighters to one Saving £ 100 million. Independent.

The review published in November last year called for no cuts if the fire department must have sufficient resources to meet the challenges of the future.

Second fire in West London
Rana Grenfell Fire is the second great fire place in West London during the past year. In August last year, homes were damaged after the fire was destroyed by tennis shepherds, an 18-story residential block in the London borough of Hammersmith and Fulham. There were no casualties.

London Fire Brigade said it believed it was because a faulty whirlpool was subjected to a “corrective action” by the manufacturer and should be seen by an engineer.

Our correspondent in London reported Vidya Ram:
While the fire department said it was too early to say anything about the cause of the fire that caused many casualties, attention has begun to focus on the state of the building, recently renovated with a new exterior cladding system to improve insulation And appearance.

Irregular sleep tied to worse grades

Irregular sleep tied to worse grades

Irregular sleep tied to worse grades

By Marilynn Larkin

(Reuters Health) – College students who endormissent and get up at different times of the week may affect their academic performance, according to a US study.

Consistency – go to bed and wake up at about the same time every day, including weekends – related to better average (GPA) among study students, researchers have revealed.

“College students who slept during the cold during the week and slept on the weekend had poorer scores than those whose schedules were more consistent,” said lead author Dr. Charles Czeisler, director of the Sleep Institute of Sleep Boston Brigham and Women’s Hospital. Reuters Health by email.

Importantly, it was not important to know how much students dream globally. Sleep time, by itself, could predict poor school performance, even if students were able to sleep at night with naps during the day, according to results published in Scientific Reports.

Czeisler and his colleagues studied the students 61 full time 18 to 24 years for 30 days. Students completed sleep logs, and the researchers used the Sleep Consistency Index (SRI), a tool that was developed to evaluate students’ sleep habits.

The index is scaled so that a person who sleeps and wakes up at exactly the same time each day scores 100, and someone who sleeps and wakes up two random notes 0.

Those who scored at the highest 20 percent were classified as regular sleepers and those who scored at 20 percent were irregular sleepers.

Both groups averaged about seven hours of sleep per day, although irregular dorsels reported lower sleep quality.

Regular sleepers slept 55 percent of the “clock night” – the hours between 10 in the morning. 10 hours – and only 1 percent of clock day, while irregular sleepers had slept, 42 percent of night and 11 percent of clock day.

As a result, irregular transverse experienced much less daylight and relatively light at night, which caused a delay in secretion of the hormone from the sleep hormone in the body, according to the researchers.

These differences have led to a change in the biological clock in the irregular crosses equivalent to the western travelers for almost three hours Czeisler said, which may explain their underachievement academic.

“For students whose sleep and wakefulness were incompatible, courses and exams scheduled for 8 hours out at 5 am – a time when cognitive performance deteriorates,” he said.

Greater regularity of sleep was associated with a better average. Any 10-point increase in the sleep regularity index was associated with an average increase of 0.10 points in the GPA. At the end of the study, the uneven sleepers score an average of 3.24 on a possible 4.0, and the average sleepers average 3.72.

The study does not prove that irregular sleep leads to poorer academic performance, researchers have pointed out, but this could be a sign of other daily habits that interfere with how students can do in college.

Increasing exposure to daylight and reducing exposure to laptops and other light-emitting devices before bedtime can improve sleep regularity, suggesting that.

Sleep specialist Dr. Rafael Pelayo of Stanford in California Sleep Medicine Center told Reuters Health that although it is possible that some people deal better with sleep deprivation than others, many students may have been below and not giving themselves account.

“I compare it to a race car,” Pelayo said. “The manufacturer can recommend high octane gas, but they can put the cheap gas and if you are stuck in traffic, you will not notice the difference. But if you put on a racetrack, you will ask the real question is. “? Could you take better academic results if you have a better quality of sleep ”

In general, students say when they go to bed or wake up depends on the day it is. When they are at different times every other day and at the weekend, Pelayo pointed out, “The brain is thrown. It is as always to be undone – you are never at your best.

Bank Audit Special Regulatory Treatment for Asset Classification

Reserve Bank of India has stipulated special regulatory frame work for asset classification, in modification to guidelines as enumerated in para 6 above. This special treatment will be available to the borrowers engaged in important business activities, subject to compliance with certain conditions as enumerated herein and is not extended to the following categories of advances:

  1. Consumer and personal advances;
  2. Advances classified as capital market exposures;
  • Advances classified as commercial real estate exposures

Thus benefit of special regulatory frame work would be available subject to compliance of conditions stipulated in the paragraph 7.1 below. If these conditions are not complied then guidelines as discussed in para 6 would apply to restructured accounts.

  • Elements of special regulatory framework

The special regulatory treatment has the following two components:

  • Incentive for quick implementation of the

restructuring package.

As an incentive for quick implementation of the package, if the approved package is implemented by the bank as per the following time schedule, the asset classification status may be restored to the position which existed when the reference was made to the CDR Cell or when the restructuring application was received by the bank.

  • Within 120 days from the date of approval under the CDR Mechanism.
  • Within 120 days from the date of receipt of application by the bank in other cases.
  • Retention of the asset classification of the restructured account in the pre­restructuring asset classification category Subject to the compliance with the

undernoted conditions in addition to the adherence to the prudential framework laid down in para 6 above,

  • An existing ‘standard asset’ will not be downgraded to the sub-standard category upon restructuring.
  • During the specified period, the asset classification of the sub-standard/doubtful accounts will not deteriorate upon restructuring, if satisfactory performance is demonstrated during the specified period.

These benefits will be available subject to compliance of the following conditions:

  1. The dues to the bank are ‘fully secured’ by tangible assets except in the following

cases:

  1. SSI borrowers, where the outstanding is up to ?25 lakh.
  2. Infrastructure projects, provided the cash flows generated from these projects are adequate for repayment of the advance, the financing bank(s) have in place an appropriate mechanism to escrow the cash flows, and also have a clear and legal first claim on these cash flows.
  3. The unit becomes viable in 8 years, if it is engaged in infrastructure activities, and in 5 years in the case of other units.
  • The repayment period of the restructured advance including the moratorium, if any, does not exceed 15 years in the case of infrastructure advances and 10 years in the case of other advances. The aforesaid ceiling of 10 years would not be applicable for restructured home loans; in these cases the Board of Directors of the banks should prescribe the maximum period for restructured advance keeping in view the safety and soundness of the advances.
  1. Promoters’ sacrifice and additional funds

Promoter’s personal guarantee should be obtained
in all cases of restructuring. Corporate guarantee
cannot be accepted as a substitute for personal
guarantee. However, the same can be accepted
in cases where promoters of a company are not
individuals.

 

Bank Audit Banks cannot reschedule/restructure/ renegotiate borrowal accounts with retrospective effect

  1. While a restructuring proposal is under consideration, the usual asset classification norms would continue to apply.
  2. The process of restructuring can be initiated by the bank in deserving cases subject to customer agreeing to the terms and conditions.
  3. No account will be taken up for restructuring by the banks unless the financial viability is established and there is a reasonable certainty of repayment from the borrower, as per the terms of restructuring package.
  4. The borrowers indulging in frauds and malfeasance are ineligible for restructuring. However, in old cases where the manner of classification of a borrower as a wilful defaulter was not transparent and bank satisfies itself that the borrower is in a position to rectify the wilful default, the restructuring of such cases may be done with board’s approval and for accounts the restructuring under the CDR Mechanism may be carried out with the approval of the Core Group
  5. BIFR cases are eligible for restructuring after their express approval and ensuring that all the formalities in seeking the approval from BIFR are completed before implementing the package.
    • Asset Classification Norms
  6. The restructuring/rescheduling/renegotiation of the terms of loan agreement could take place:
  • before commencement of commercial operations;
  • after commencement of commercial operations but before the asset has been classified as sub standard;
  • after commencement of commercial operations and after the asset has been classified as substandard.
  1. Upon restructuring, the accounts classified as ‘standard assets’ would get reclassified as ‘substandard assets’ and account which is already NPA would continue to have the same classification and slip in to further lower asset classification as per the extant asset classification norms.
  2. Any additional finance may be treated as ‘standard asset’, up to a period of one year after the first interest/principal payment, whichever is earlier, falls due under the approved restructuring package.

No account will be taken up for restructuring by the banks unless the financial viability is established and there is a reasonable certainty of repayment from the borrower as per the terms of restructuring package.

All restructured accounts which have been classified as NPA upon restructuring, would be eligible for up-gradation to the ‘standard’ category after observation of ‘satisfactory performance’ during the specified period. Specified period means a period of one year from the commencement of the first payment of interest or principal whichever is later, on the credit facility with longest period of moratorium under the terms of restructuring package.

  1. However, accounts of the borrower can continue to be classified in existing asset classification category subject to fulfilment of conditions enumerated in para 7 below.

6.4. Provisioning Norms:

  1. The total provisions required against an account under restructuring would be normal provisions plus provisions in lieu of diminution in the fair value of the advances.
  2. Normal provision is discussed in para 8.
  3. Diminution in fair value of the advance is difference between fair value of advance before and after restructuring. Fair value of advance before/after restructuring is computed as the present value of cash flows representing the interest at the existing rate/revised rate charged on the advance before/after restructuring and discounted at an appropriate rate. The difference between two fair values would be the diminution in value of advance which would be provided for.
  4. The diminution in the fair value would be required to be re-computed on each balance sheet date till satisfactory completion of all repayment obligations and full repayment of the outstanding in the account. Consequently, banks would be required to provide for the shortfall in provision or reverse the amount of excess provision.
  5. As an alternative to the methodology prescribed above for computing the amount of diminution in the fair value, banks will have the option of notionally computing the amount of diminution in the fair value and providing therefore, at five percent of the total exposure, in respect of all restructured accounts where the total dues to bank are less than ? 1 crore. Restructured advances classified as standard or classified as NPA but subsequently upgraded would attract higher provision.

Bank audit Appropriation of Recovery in NPAs

In case of any recovery in the NPA, the application of recovery towards interest/principal should be based on the agreement with the borrower. In the absence of a clear agreement, banks should adopt an accounting principle and exercise the right of appropriation of recoveries in a uniform and consistent manner. Thus, as per the consistent policy of the bank, recovery may be appropriated towards interest or principal.

  1. Asset Classification

Having identified an account as NPA, it is further required to be classified into –

  1. Sub-standard Assets
  2. Doubtful Assets
  3. Loss Assets Sub-standard Assets:

An account which is classified as NPA for the first time, is categorised as sub-standard for a period of less than or equal to twelve months from the date of advance becoming NPA. However in following

If any advance, including bills purchased and
discounted, becomes NPA as at the close of any
year, entire interest accrued and credited to income
account in the past periods, should be reversed or
provided for if the same is not realised during the
year under audit.

circumstances, the NPA should be straightaway classified as doubtful/loss asset-

  • Where there are potential threats for recovery on account of erosion in the value of security or non-availability of security and existence of other factors such as frauds committed by borrowers
  • When erosion in the realisable value of the security is more than 50% of the value assessed by the bank or accepted by the RBI at the time of last inspection, NPAs should be straightaway classified under doubtful category.
  • If the realisable value of the security, as assessed by the bank/approved valuers/RBI is less than 10% of the outstanding in the borrowal accounts, the NPA should be straightaway classified as loss asset.

Doubtful Assets:

An account is classified as doubtful if it has remained in the sub-standard category for a period of 12 months.

Loss Assets:

Such an asset is considered uncollectible and of such little value that its continuance as a bankable asset is not warranted although there may be some salvage or recovery value (less than 10% of balance outstanding).

  1. Prudential Guidelines on Restructuring of Advances by Banks

There is a different set of guidelines for classification of advances under restructuring in Part-B of the Master Circular of Reserve Bank of India

  • Guidelines are extended to following four category of advances:
  • Advances to industrial units
  • Industrial units under the Corporate Debt Restructuring (CDR) mechanism
  • Advances extended to Small and Medium Enterprises (SME)
  • Restructuring of all other advances.
    • Eligibility Criteria:

Banks may restructure the accounts classified under ‘standard’, ‘sub-standard’ and ‘doubtful’ categories.

Bank Audit Income Recognition Reversal of Income

 

An account which is generally irregular, where a solitary or a tew credits are recorded before the balance sheet date, should be carefully checked.

lead bank for the transfer of their share of recovery, they may be able to make proper classification in their books.

  • Advances against Term Deposits, NSCs and KVP/IVP,

Advances against term deposits, NSCs eligible for surrender, IVPs, KVPs and life policies need not be treated as NPAs. Advances against gold ornaments, government securities and all other securities are not covered by this exemption.

  • Government guaranteed advances

The credit facilities backed by guarantee of the Central Government though overdue may be treated as NPA only when the government repudiates its guarantee when invoked.

  • Up gradation of loan accounts classified as NPAs

If arrears of interest and principal are paid by the borrower in the case of loan accounts classified as NPAs, the account should no longer be treated as non-performing and may be classified as ‘standard!

  • Accounts regularised near about the balance sheet date

An account which is generally irregular, where a solitary or a few credits are recorded before the balance sheet date, should be carefully checked. Where the account indicates inherent weakness on the basis of the data available, the account should be deemed as a NPA. In other genuine cases, the auditors must obtain satisfactory evidence about the manner of regularisation of the account to eliminate doubts on their performing status.

  • Income Recognition
  1. As per Accounting Standard 9 on Revenue Recognition and as per the Master Circular of the RBI, income should be recognised when there is a reasonable certainty about its realisability. In respect of NPA, there is no reasonable certainty about realisability of interest, therefore it is booked as income only when it is actually realised. If bank follows policy of charging interest in NPA account then same should not be taken to income but to unrealised interest or interest suspense account.

However, interest on advances against term deposits, NSCs, IVPs. KYPs and Life policies may be taken to inc me account on the due date, provided adequate margin is available in the accounts. For example: A borrower has taken loan of ^ 1 lakh against term deposit of ? 1.25 lakh. Balance in the account as on 31st March, 2015 is ? 1.10 lakh. Even though account is over drawn, income would be recognised since value of deposit is more than the balance outstanding.

  1. Income on standard advances is recognised on accrual basis except in case of income on Central Government guaranteed advances, which would ha e otherwise become NPA, income is recognised on realisation.
  • In the case ol accounts where the pre restructuring facilities were classified as sub­standard’ and ci. ubtful interest income on the additional finance sh< >uld be recognised only on cash basis.
  1. In project loans, am funding of interest in respect of NPA’ ifgnised as income, should be fully providec for.
  2. If the amount of interest dues is converted into equity or am ther instrument, and income is recognised in consequence, full provision should be made for the amount of income so recognised However, if the conversion of interest is inn equitx which is quoted, interest income can be recognised at market value of equity, as on the date of conversion, not exceeding the am unt of interest converted to equity.
  3. The income in respect of unrealised interest which is con .x rted into debentures or any other fixed maturin instrument should be recognised only on redempti n of such instrument.
  • Fees and commissi ms earned by the banks as a result of re-r.cg tiations or re-scheduling of outstanding debts should be recognised on an accrual basis over the period of time covered by the re-neg d c r re-scheduled extension of credit.
  • Reversal of Income
  1. If any advance, .nduding bills purchased and discounted bee mes NPA as at the close of any year, entire interest accrued and credited to income account in the past periods, should be reversed or provided for if the same is not realised during the year under audit. This will apply to government guaranteed accounts also.
  1. In respect of NPAs, fees, commission and similar income that have accrued should cease to accrue in the current period and should be reversed or provided for with respect to past periods, if uncollected.
  • The ‘finance charge’ component of finance income [as defined in ‘AS 19-Leases’ issued by the Institute of Chartered Accountants of India (ICAI)] on the leased asset which has accrued and was credited to income account before the asset became non-performing, and remaining unrealised, should be reversed or provided for in the current accounting period.