## Advances — Legal Disclosures in the Balance Sheet
Under Schedule 9 of the bank balance sheet, advances are disclosed in three 'Buckets':
---
### Bucket A — By Type of Advance
| Sub-category |
|---|
| Bills Purchased and Discounted |
| Cash Credits, Overdrafts (OD), and Loans Repayable on Demand |
| Term Loans |
---
### Bucket B — By Security
| Sub-category |
|---|
| Secured by Tangible Assets |
| Covered by Bank / Government Guarantees |
| Unsecured |
---
### Bucket C — By Geography
Advances in India:
| Sub-category |
|---|
| Priority Sector |
| Public Sector |
| Banks |
| Others |
Advances outside India:
| Sub-category |
|---|
| Due from Banks |
| Due from Others |
| Bills Purchased and Discounted |
| Syndicated Loans |
| Others |
---
## Classification of Advances for Audit Purposes
```
Classification of Advances
├── Sector-wise
│ ├── Priority Sector
│ └── Non-Priority Sector
├── Security-wise
│ ├── Secured
│ └── Unsecured
└── Prudential Norms (Asset Quality)
├── Standard Assets
└── Non-Performing Assets (NPAs)
├── Sub-standard
├── Doubtful
└── Loss Assets
```
> Audit focus: The key audit risk in advances is misclassification — particularly keeping NPA accounts classified as Standard to avoid provisioning. The IRACP audit report directly addresses this.