Model: Provision to be created Best Bank Ltd. had extended the following credit lines to a small-scale industry, which had paid any interest since March 2009:

Particulars

Term Loan

Export Credit

Balance Outstanding on 31 March 2011

Rs.90,00,000

Rs.70,00,000

DICGC/ECGC Cover

50%

40%

Securities Held

Rs.40,00,000

Rs.30,00,000

Realizable Value of Securities

Rs.30,00,000

Rs.20,00,000

Compute the necessary provisions to be made for the year ended on 31 March 2011.