GrowingSteady - Sanima Bank · S.S.E. (Commerce), Representative from General public. Director - ... Profit & Loss Account and the Cash Flow ... Phidim, Panchthar financed by Consortium

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Sanima Bikas Bank Limited

GrowingSteady

3rd Annual Report 2006/2007

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Sanima Bikas

Bank Limited

G.P.O. Box: 20394

Nagpokhari, Kathmandu

Branch Office: Damak, Jhapa

Tel: +977 1 4428979-80

Fax: +977 1 4428969

Email: [email protected]

Url: www.sanimabank.com

PHOTOGRAPHY, DESIGNED AND PROCESSED BY:

POWER COMMUNICATION

The mission of Sanima is to

provide banking and

financial solutions in a

simplified way with

customer focus while

adding value to

stakeholders’ interests.

Board of Directors 2

Executive Chairman’s Statement 4

Directors’ Report 6

Financial Highlights 7

Products & Services 8

Partner in Nation Building 10

3rd AGM of Sanima 13

Corporate Governance 15

Management Team 21

Auditors’ Report 22

Balance Sheet 23

Profit & Loss Account 24

Profit & Loss Appropriation Account 25

Statement of Changes in Equity 26

Cash Flow Statement 27

Schedules 28

Principal Accounting Policies 50

Notes to Account 52

Contents »


GrowingSteady


Sanima Bikas Bank Limited Annual Report 2006/2007

2

MR. ARUN KUMAR OJHADirector

M.SC.(Geology) Promoter,

Director & Chairman of many

private sector companies like

hydropower, health &

information. Chairman- Sanima

Hydropower Pvt. Ltd.

Director- Sanima Pvt. Ltd.

Director- Medicare National

Hospital & Research Center Ltd.

MR. TEK RAJ NIRAULADirector

M.SC.(Civil Eng.) Promoter,

Director & Chairman of

many private sector

companies like hydropower,

health & information.

Director- Sanima

Hydropower Pvt. Ltd.

Chairman- Sanima Pvt. Ltd.

MR. BADRI PRASAD OJHAExecutive Chairman

M.SC. (Stat.), BL, Ex- Director

General of Federation of

Nepalese Chamber of Commerce

& Industry (FNCCI)

MR. DILIP SHRESTHADirector

M.SC. ( Civil Eng.) Promoter,

Director & Consultant of many

private sector firms like

hydropower & information.

Promoter-Photobeg color Lab,

Advisor- Sanima Hydropower

Pvt. Ltd.

Board


3

MR. SHAMBA LAMADirector

S.S.E. (Commerce), Representative

from General public. Director -

Bhirkuti Trading Pvt. Ltd. Promoter-

Mila Land & Development Pvt. Ltd.

MR. BHARAT KUMAR POKHARELProfessional Director

Post Graduate in Management,

Decades of Banking experience

MR. PANKAJ ADHIKARIDirector

B.Com, Representative from

public shareholders

of Directors »


4

Coopers’ has been the statutory auditor of

Sanima in the previous years. Similarly, M/s T.R.Upadhaya & Company which is associated with

another renowned firm ‘KPMG’ has been the

internal auditor of Sanima. The audit committeeheaded by a non executive director is proactive

in implementing the suggestions given by theauditors and to make continuous improvements.

Sanima has different sub committees like Credit

Review Committee, IT Forum and Asset andLiability Management Committee that are active

in the management level to make the workingenvironment of Sanima transparent and

participatory as well as to minimize the risks.

Sanima plans to expand its network in different

parts of the country in the coming days.Widening the area of work, providing more

facilities and services to its customers,increasing and developing the human resources

and increasing its capital as per the directives of

Nepal Rastra Bank will be the objectives andgoals of Sanima for the coming days.

I would like to thank all the stakeholders of

Sanima and especially to those who have shownyour presence in this meeting. I expect more

support and cooperation from our shareholders

and I would like to thank you for your continuedsupport in the past. I would like to congratulate

and thank all my colleagues of Sanima for theirvaluable contribution. I want to assure you all

that the team of Sanima will be working harder to

achieve greater success and sustainable growth.

Once again, I thank you all for and welcome youat this gathering.

Thank you.

Badri Prasad OjhaExecutive Chairman

Dear Shareholders,

I would like to welcome you all to this 3rd Annual

General Meeting of Sanima Bikas Bank Limited(Sanima).

I feel glad to mention that Sanima has been able

to achieve remarkable growth and success in allthe three years of its operation. Maintaining high

growth rate along with achieving net profits in

the past three years has been a success story forSanima. Sanima has also expanded its area of

functioning, increased substantially its portfolioof loans and deposits and has opened its first

branch. Not only Sanima attained quantitative

growth, but also Sanima has been able tomaintain the quality of its assets that is

evidenced by the non existence of Non-Performing Loan consecutively for the third fiscal

year. In the context of the competitive market

scenario which has been further elevated by therecent entrance of many new players in the

market, Sanima has been providing necessary

trainings, education and facilities to its staffs tocope with the competitive market condition.

Sanima has started issuing Demand Draft in

Indian Rupees and US Dollar for its customers.In the beginning of the present year 2064/65,

Sanima has launched SMS Banking facility forits customers. To honor our respected

shareholders, a new deposit account scheme,

‘Shareholders Deposit Account’ has beenintroduced. It is known to you all that the name of

our organization has been changed to Sanima

Bikas Bank Limited. We had plans to conductLetter of Credit transaction, which, however, was

not achieved as no B class financial institutionhas received permission to do so.

M/s CSC & Company, a firm affiliated with the

internationally renowned ‘Pricewaterhouse

From the Executive Chairman’s Desk »


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Respected shareholders,

We are delighted to greet our shareholders present in the Third

Annual General Meeting of Sanima Bikas Bank Limited.

The Balance Sheet, Profit & Loss Account and the Cash Flow

Statement for the Fiscal Year 2006/2007 of Sanima and the report

of the Board of Directors have been presented to you for the

required discussion and approval.

Directors’ Report »


7

SN Particulars FY 2004/05* FY 2005/06 FY 2006/07 % INCREASE

1 Capital & Reserve 224,255 233,040 347,766 49%

2 Deposits 238,355 749,996 1,822,705 143%

3 Loans & Advances (Net) 248,167 751,046 1,486,897 98%

4 Total Revenue 16,197 66,220 130,653 97%

5 Total Expenses 13,492 47,695 93,878 97%

6 Operating Profit 283 13,361 29,342 120%

7 Net Profit 255 8,786 18,748 113%

8 Non-Funded Facilities 38,515 81,502 50,918 -37%

9 Non Performing Loans 0 0 0 0%

Figures in NPR ‘000

* Seven months’ operation period in the FY 2004/05

In the fiscal year 2006/07, Sanima was able to attain growth by 120% to achieve Operating Profit of NPR

29.34 million and by 113% to achieve Net Profit of NPR 18.75 million as compared to the last fiscal year.

Similarly, the net loan portfolio reached NPR 1,487 million and the deposit portfolio reached NPR 1,823

million, an increase of 98% and 143% respectively in the last fiscal year. The summary of financial

position of Sanima for the last three years is as follows:

Financial Highlights »


8

DepositsSanima offers high value deposits targeting all kind of customers. The interest rate

provided in the deposit products of Sanima is higher or equal to that of all A class

financial institutions of Nepal. Sanima has been a good custodian of its customers’

hard earned money. Some of the popular deposit products are Sanima Sulav

account which can be opened with NPR 1,000. Sanima Subidha Bachat is another

high yielding deposit account which offers interest at 5% per annum on daily

balance. Sanima also provides Call Account facilities to financial institutions and

corporate entities. Fixed, Saving and Current account deposits are available in some

foreign currencies including the US Dollar.

The foreign currency deposit volume of Sanima falls in the top 10 among all banks.

Products and Services »


9

Sanima Shareholders’ Deposit AccountOur shareholders are our constant source ofmotivation and inspiration. To make them a part

of our activities to give them the highest benefits,

we have launched the Sanima Shareholder’sDeposit Account which provides interest rate of

5.50% per annum, an especial rate for ourshareholders along with accidental insurance

coverage of Rs. 100,000.00

Loans And AdvancesSanima has been able to maintain the quality ofits loans for three consecutive fiscal years since

its inception at the highest level, that is, there areno Non Performing Loans of Sanima.

Along with the quality of

its risk assets, Sanimahas maintained

substantial growth in itsloan portfolio. The

quantity as well as the

quality of the risk hasbeen one of the major

factors in thesustainable growth of

Sanima.

Sanima today provides a complete financial

solution to the corporate sector and individuals.Our rates are competitive and services are

highly professional. Some of its regular loanproducts are:

Term loan Working Capital Loan

Overdraft Home Loan

Hire Purchase Loan Education loan

(private and commercial)

Personal Loan Loan against FDR,

securities etc.

Sanima is committed to provide complete

business banking solutions customized to servethe needs of its customers. We provide reliable

solutions in an efficient and effective manner.

Once a relationship is established with ourcustomer, all our efforts are directed in making a

long lasting relationship. Our strategy ofcustomer oriented banking has been able to

create win-win situation both for Sanima as well

as for its customers. Some of the growing loanfacilities that Sanima provides are:

Hydropower Projects FinancingWe are one of the leading investors and expertswhen it comes to investing in hydropower

projects, the reputation that we have achieved in

our short span of operation. As infrastructureprojects are regarded backbone in nation

building process, Sanima is proactive ininvesting and promoting hydroelectric projects.

Out of the four hydropower projects financed by

Sanima, two independently and two by theconsortium of banks in the lead of Sanima, three

projects completed successfully and are under

commercial operation whereas another one isunder construction. With the liberalized directive

of Nepal Rastra Bank in financing such projects,Sanima is enthusiastic about financing more

such projects.

Inspection team at Upper Hadi Khola, a hydro power project being

financed by Consortium of banks in the lead of Sanima


10

Sanima, in its own small and

big ways, has been utilizing the

public’s money in different kinds

of projects that help establish

infrastructures in the country.

Construction under Progress Inspection by Sanima staff Completion Stage

Partner in Nation Building »

A synopsis of Sali Nadi Hydropower Project financed solely by Sanima. The project is under commercial operation.


11

An overview of Pheme Khola Hydropower Project, Phidim, Panchthar financed by Consortium of banks in the lead of Sanima which is under commercial operation


12

Manpower LoanA big portion of Nepal’s income is throughremittance by people working in various

countries. As a big chunk of population is below

the poverty line, we being a partner of thissociety have launched Manpower financing

scheme for people going abroad for foreignemployment. We provide manpower loan up to

NPR 150,000 to promote employment

opportunities for Nepali not only within thenational boundary but also in a foreign land.

Small Business Growth LoanWith an aim to cater to the financing needs ofSmall and Medium Business Enterprises

(SMEs), Sanima has introduced yet another

customer-friendly loan product called “SmallBusiness Growth Loan” with the theme – ‘Sang

Sangai Aghi Badhaun’ (Let’s grow together).

Consortium FinancingSanima believes in integrity and team work.

Sanima has in some occasions played a lead

role when it comes to consortium financing. Wehave been consortium partners in some

occasions. Our principle of co-existence is alsoreflected in the cooperation between consortium

partners. It is a matter of honor to Sanima that

many reputed banks of the country happilyaccept the lead of Sanima, a relatively new

financial player, to be the members of aconsortium.

Foreign Currency TransactionsA diverse range of foreign currency services areprovided by Sanima. Whether it is Foreign

exchange (Forex) or telegraphic transfer, the

Forex services are popular among our clientele.Similarly, demand draft and foreign currency

deposit schemes are also making their mark inthe minds of customer. Sanima is one of the

leading custodians of foreign currency deposits

in banking sector of Nepal.

Foreign Exchange Rates depends upon variousmicro as well as macro economic situations. FY

2063/64 was not a very good year for US Dollar.The rise in price of oil and commodities like gold,

silver and steel as well as inflow of capital to

emerging Asian markets like China and Indiawhich in turn helped them strengthen their

economic level, played a vital role in the Dollar’sdownfall against the Indian Rupees (INR) and

subsequently against Nepali Rupees which is

pegged against the INR.


13

3rd Annual

General

Meeting of

Sanima »


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15

Corporate Governance »

Human ResourcesSanima believes that its employees are its mostvaluable assets. Our staffs are well trained,

qualified, and down to earth when it comes to

providing services to its customers. We organizein house training as well as we send our

employees for external trainings to make themcompetent and update them to cope with the

changing market scenario. Our journey with 28

of employees at the end of first fiscal year hasreached 39 in the third

year. Our strategyregarding human

resources is to hire the

best people, train themwell, watch them

perform and retainthem. Employees are

rewarded on the basis

of their performanceand their individual

contribution toSanima.

Risk ManagementProper risk management practices ensure effective utilization of resources. We analyze the risk in

practical and transparent manner. Continuous monitoring and supervision are the main aspects of our

risk management procedure. Sanima is well aware of the industrial environment and it plans to

incorporate risk management practices as prescribed by BASEL II beforehand, though not mandatory for

Sanima as per Nepal Rastra Bank’s directives. Compliance and control systems are in place at Sanima

to cope with all kinds of possible risks.

CommitteesThough the board of directors is the apex bodyto look after the affairs of Sanima, at the senior

and mid-management level we have formed

various committees to professionalize ouroperation, make them more efficient, effective

and participatory. Some of the committee are:· Management Committee

· Credit Review Committee

· Asset Liability Management Committee· IT Forum


16

Audit Committee and AuditorsOur Statutory Auditor Mr. Madan Krishna

Sharma, Fellow Chartered Accountant of M/s

CSC and Co., a firm associated withinternationally renowned firm, “PriceWaterhouse

Coopers” have audited our books of accounts inthe previous years. M/s T.R. Upadhaya and Co.,

an affiliated firm of the internationally renowned

firm “KPMG” has been the internal auditor ofSanima. An Audit Committee firmed under the

chairmanship of a non-executive director isconscientious about implementing the best

practices and improving continuously.

NRN FocusSanima itself being promoted and

driven by the vision of Non Resident

Nepalese (NRN), it has beenproactive in providing services to the

Non Resident Nepalese. Sanimahas been a Platinum Partner for the

Global NRN Conferences held since

its inception. The NRN wing ofSanima facilitates the services to

NRN.

Budget Conference 064/65 (2007/08)

Third NRN Global Conference, of which Sanima is a Platinum Partner

SMS banking

Staying at home customer can

avail 24 hour banking

convenience which helps them

to be aware of any changes

made in their bank account or a

loan account through their

mobile phone.

On September 07, 2007, operations in the

Damak branch began. A small business hub, still

in an unexplored situation, the Damak branch isexpected to address the problem of people in

search of complete banking solution. The branchwill follow the path of growth with the delivery of

high class service.

Sanima has already got the permission to open

a new branch at New Road, Kathmandu. Wehave plans to further increase our number of

branches in the running Fiscal year.

TechnologyManagement Information system based on

proper technology is the backbone of today’sbanking system. Networking facilities based on

fiber optics system are enabling the wholebanking operation of Sanima to provide an

international class service. The first branch of

Sanima is linked with the corporate office onreal time basis providing any branch banking

facility. Speed, accuracy and high valueperformance are the words associated with

Sanima’s technical capability. Our operations

are based on locally made customized software,PUMORI Plus III. Information Technology Forum

discusses the enhancement of technology topower the operation of Sanima with the latest

technology and equip with the necessary

technical support.

Future Plans »

Damak Branch: A Milestone“A journey of thousand miles starts with the first step”. Our first branch at Damak, Jhapa reflects the same

saying. Damak branch is just a first move to quench the thirst of reaching our clients in every nooks and

corners of the country. We assure you that our journey will continue.


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Sanima has started to provide Debit/

ATM cards, SMS Banking and Nepal

Telecom phone (PSTN) Bill Payment

services to its customers.


20

Impact of National andInternational condition in thePerformance of SanimaGlobally, soaring oil and commodities prices had

a negative impact on US Dollars. Dollars fell bymore than 12% against the Nepali Rupees

during the period. The concentration of moneytowards cheap labor economies mostly to

emerging economies like India and other South

East Asian countries played a role in the Dollar’sdownfall. Wide use of credit derivatives

instruments and other hybrid products made theForex market more vulnerable to risks.

Nationally, though the country seemed calm

compared to last year, people have not become

enthusiastic for investment. The unrest indifferent parts of the country, day-to-day bandh

and other programs of agitation are the negativefactors hampering the industrial and other

productive sectors of the economy. However, the

lack of opportunity for investments has attractedthe general public to invest in the stocks,

especially those of banks and financialinstitutions. The NepSe Index and also the

banking Index reached a new height during the

period with the soaring prices of stocks of banksand financial institutions.

Changes in theBoard of DirectorsDr. Niraj Govinda Shrestha resigned from the

Board of Directors of Sanima due to his busy

engagement with other responsibilities. Weexpress our gratefulness to him and thank him a

lot for the contributions he has made to Sanima.

Mr. Pankaj Adhikari and Mr. Shamba Lama havebeen elected unopposed as the Directors of

Sanima as the representatives of public

shareholders. Mr. Bharat Kumar Pokharel hasbeen appointed as the Professional Director of

Sanima in line with the directives of NepalRastra Bank.


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1/ Badri Prasad Ojha, Executive Chairman

2/ Kumar Lamsal, General Manager

3/ Tej Bahadur Chand, Assistant General Manager

4/ Pawan Kumar Acharya, Head – Business Development & Branch Manager, New Road Branch

5/ Santosh Koirala, Relationship Manager

6/ Sunil Khatiwada, In-charge, Information Technology and Branch Management & Expansion

7/ Bishal Dahal, In-charge, Accounts & Shares

8/ Madhav Subedi, In-charge, Human Resource & General Services

9/ Satya KC, In-charge, Operations

Management Team »

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CSC & Coan associated firm of PricewaterhouseCoopers

CSC & CoChartered Accountants1955, Tanka Prasad Ghumti SadakBabar MahalPO Box: 4861, Kathmandu, NepalTel: +977-1-4259414, 4268798Fax: +977-1-4244255E-mail: [email protected]

Auditors’ ReportTTTTTo the Sharo the Sharo the Sharo the Sharo the Shareholders of Sanima Bikas Bank Limitedeholders of Sanima Bikas Bank Limitedeholders of Sanima Bikas Bank Limitedeholders of Sanima Bikas Bank Limitedeholders of Sanima Bikas Bank Limited

We have audited the attached Balance Sheet of Sanima Bikas Bank Ltd. as of Ashad 32, 2064 (16 July2007) and the Profit and Loss Account and Cash flow Statement and Statement of changes in equity forthe year then ended. These financial statements are the responsibility of the bank’s management. Ourresponsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with Nepal Standards on Auditing and the auditing standardsgenerally accepted in Nepal. Those standards require that we plan and perform the audit to obtainreasonable assurance about whether the financial statements are free of material misstatement. An auditincludes examining, on a test basis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used and significant estimatesmade by management, as well as evaluating the overall financial statement presentation. We believe thatour audit provides a reasonable basis for our opinion.

We have obtained satisfactory information and explanations asked for, which to the best of ourknowledge and belief were necessary for the purpose of our audit; the returns received from the branchoffices of the bank where adequate for the purpose of the audit; the Balance Sheet, the Profit and LossAccount, the Cash flow Statement and Statement of changes in equity have been prepared in accordancewith the methods and format specified by Nepal Rastra Bank, and conform to the books of accounts of thebank; and the accounts and records of the bank are properly maintained in accordance with theprevailing laws.

To the best of our information and according to the explanations given to us in the course of our audit, weobserved that the actions were taken for the protection of the interest of depositors and investors; thecapital fund and risk bearing fund were adequate; the business of the Bank was conducted satisfactorilyand the bank’s transactions were found to be within the scope of its authority. We did not come acrosscases where the board of directors or any director or any office bearer of the bank has acted contrary tothe provisions of law or caused loss or damage to the bank or committed any misappropriation or violateddirectives of Nepal Rastra Bank, nor have we been informed of any such case by the management.

In our opinion, the financial statements give a true and fair view of the financial position of the bank as of32 Ashad, 2064 (16 July 2007), and of the results of its operations and its cash flows for the year thenended in accordance with the accounting practices generally accepted in Nepal and those statementsare in compliance with the directives from Nepal Rastra Bank, Bank and Financial Institution Act, 2063and Company Act 2063.

Date: 24 Aswin 2064 (Oct 11, 2007)Kathmandu

Madan Krishna SharmaPartner

CSC & Co.Chartered Accountants


23

ASSETS SCHEDULE THIS YEAR PREVIOUS YEAR

1 Cash Balance 4.8 25,406,955 16,424,6252 Balance with NRB 4.9 51,731,360 30,534,7883 Balance with Banks/Financial Institutions 4.10 4,518,405 1,925,4514 Money at Call and Short Notice 4.11 431,433,574 176,960,4715 Investments 4.12 466,271,200 -6 Loans Advances and Bills Purchase 4.13 1,486,897,359 751,046,3387 Fixed Assets 4.14 16,104,233 15,395,3858 Non-Banking Assets 4.15 - -9 Other Assets 4.16 24,368,390 18,444,339

Total Assets 2,506,731,476 1,010,731,397

Figures in NPR

Sanima Bikas Bank LimitedBALANCE SHEET

as on Ashad 32, 2064 (July 16, 2007)

CAPITAL & LIABILITIES SCHEDULE THIS YEAR PREVIOUS YEAR

1 Share Capital 4.1 320,000,000 224,000,0002 Reserves and Funds 4.2 27,766,894 9,040,6123 Debentures and Bonds 4.3 - -4 Borrowings 4.4 324,520,000 25,000,0005 Deposit Accounts 4.5 1,822,705,055 749,996,3646 Bills Payables 4.6 - -7 Proposed and Payable Dividend - -8 Income Tax Liabilities - -9 Other Liabilities 4.7 11,739,527 2,694,421

Total Capital and Liabilities 2,506,731,476 1,010,731,397

Figures in NPR

Contingent Liabilities Schedule 4.17Directors' Declaration Schedule 4.29Statement of Capital Fund Schedule 4.30Statement of Risk Weighted Assets Schedule 4.30 (A)Principal Indicators Schedule 4.31Principle Accounting Policies Schedule 4.32Notes to Accounts Schedule 4.33

Schedules 4.1 to 4.17, 4.32 & 4.33 form integral parts of the Balance Sheet.

Date : 2064.06.24 (11.10.2007)Place : Kathmandu

Kumar LamsalKumar LamsalKumar LamsalKumar LamsalKumar LamsalGeneral Manager

Badri Prasad OjhaBadri Prasad OjhaBadri Prasad OjhaBadri Prasad OjhaBadri Prasad OjhaExecutive Chairman

Bishal DahalBishal DahalBishal DahalBishal DahalBishal DahalIn-charge - Accounts

As per our report of even date

Madan Krishna SharmaMadan Krishna SharmaMadan Krishna SharmaMadan Krishna SharmaMadan Krishna SharmaPartnerCSC & Co.,Chartered AccountantArun Kumar OjhaArun Kumar OjhaArun Kumar OjhaArun Kumar OjhaArun Kumar Ojha

DirectorDilip ShresthaDilip ShresthaDilip ShresthaDilip ShresthaDilip ShresthaDirector

Tek Raj NiraulaTek Raj NiraulaTek Raj NiraulaTek Raj NiraulaTek Raj NiraulaDirector

Bharat Kumar PokharelBharat Kumar PokharelBharat Kumar PokharelBharat Kumar PokharelBharat Kumar PokharelDirector

Shamba lamaShamba lamaShamba lamaShamba lamaShamba lamaDirector

Pankaj AdhikariPankaj AdhikariPankaj AdhikariPankaj AdhikariPankaj AdhikariDirector


24

PARTICULARSPARTICULARSPARTICULARSPARTICULARSPARTICULARS SCHEDULESSCHEDULESSCHEDULESSCHEDULESSCHEDULES THIS YEARTHIS YEARTHIS YEARTHIS YEARTHIS YEAR PREVIOUS YEARPREVIOUS YEARPREVIOUS YEARPREVIOUS YEARPREVIOUS YEAR

1. Interest Income 4.18 124,802,205 60,828,4392. Interest Expenses 4.19 66,749,676 26,152,922

Net Interest Income 58,052,529 34,675,5173. Commission and Discount 4.20 1,286,909 539,1414. Other Operating Incomes 4.21 4,563,790 4,775,9165. Exchange Fluctuation Income 4.22 76,871

Total Operating Income 63,903,228 40,067,4456. Employees Expenses 4.23 11,238,219 8,364,8457. Other Overhead Expenses 4.24 15,615,006 13,177,0728. Exchange Fluctuation Loss 4.22 275,406

Operating Profit Before Provision for Possible Loss 36,774,597 18,525,5289. Provision for Possible Losses 4.25 7,432,838 5,164,920

Operating Profit 29,341,759 13,360,60810. Non-operating Income/Expenses 4.26 - -11. Loan Loss Provision Written-Back 4.27 - -

Profit from Regular Operations 29,341,759 13,360,60812. Profit/Loss from extra-ordinary activities 4.28 - -

Net Profit after considering all activities 29,341,759 13,360,60813. Provision For Staff Bonus 2,667,433 1,214,60114. Provision For Income Tax 7,925,896 3,360,262

This Year's 7,925,896 3,360,262Previous Year's - -Net Profit 18,748,430 8,785,745

Sanima Bikas Bank LimitedSanima Bikas Bank LimitedSanima Bikas Bank LimitedSanima Bikas Bank LimitedSanima Bikas Bank LimitedPROFIT AND LOSS ACCOUNTPROFIT AND LOSS ACCOUNTPROFIT AND LOSS ACCOUNTPROFIT AND LOSS ACCOUNTPROFIT AND LOSS ACCOUNT

For the period from July 17, 2006 to July 16, 2007 (Shrawan 01, 2063 to Ashad 32, 2064)For the period from July 17, 2006 to July 16, 2007 (Shrawan 01, 2063 to Ashad 32, 2064)For the period from July 17, 2006 to July 16, 2007 (Shrawan 01, 2063 to Ashad 32, 2064)For the period from July 17, 2006 to July 16, 2007 (Shrawan 01, 2063 to Ashad 32, 2064)For the period from July 17, 2006 to July 16, 2007 (Shrawan 01, 2063 to Ashad 32, 2064)

Figures in NPR












Schedules 4.18 to 4.28, 4.32 & 4.33 form integral parts of the Profit & Loss Account.


25

PARTICULARSPARTICULARSPARTICULARSPARTICULARSPARTICULARS SCHEDULESSCHEDULESSCHEDULESSCHEDULESSCHEDULES THIS YEARTHIS YEARTHIS YEARTHIS YEARTHIS YEAR PREVIOUS YEARPREVIOUS YEARPREVIOUS YEARPREVIOUS YEARPREVIOUS YEAR

Incomes1 Accumulated Profit up to the Last Year 7,210,342 203,8942 Current Year's Profit 18,748,430 8,785,7453 Exchange Fluctuation Fund - -

Total 25,958,772 8,989,639Expenses

1 Accumulated Loss up to the Last Year - -2 This Year's Loss - -3 General Reserve Fund (20%) 3,749,686 1,757,1494 Contingent Reserve Fund - -5 Institutional Development Fund - -6 Dividend Equalization Fund - -7 Employee Related Reserves Funds - -8 Proposed Dividend - -9 Proposed Issue of Bonus Shares - -

10 Special Reserve Fund - -11 Exchange Fluctuation Fund (25%) - 22,14812 Capital Redemption Reserve Fund - -13 Capital Adjustment Fund - -14 ……………………. - -

Total 3,749,686 1,779,29715 Accumulated Profit/(Loss) 22,209,086 7,210,342

Figures in NPR

Sanima Bikas Bank LimitedSanima Bikas Bank LimitedSanima Bikas Bank LimitedSanima Bikas Bank LimitedSanima Bikas Bank LimitedPROFIT AND LOSS APPROPRIATION ACCOUNTPROFIT AND LOSS APPROPRIATION ACCOUNTPROFIT AND LOSS APPROPRIATION ACCOUNTPROFIT AND LOSS APPROPRIATION ACCOUNTPROFIT AND LOSS APPROPRIATION ACCOUNT














26

PARTICULARSPARTICULARSPARTICULARSPARTICULARSPARTICULARS SHARESHARESHARESHARESHARE ACCUMULATEDACCUMULATEDACCUMULATEDACCUMULATEDACCUMULATED GENERALGENERALGENERALGENERALGENERAL CAPITALCAPITALCAPITALCAPITALCAPITAL SHARESHARESHARESHARESHARE EXCHANGEEXCHANGEEXCHANGEEXCHANGEEXCHANGE OTHEROTHEROTHEROTHEROTHER TOTALTOTALTOTALTOTALTOTAL

CAPITALCAPITALCAPITALCAPITALCAPITAL PROFIT/LOSSPROFIT/LOSSPROFIT/LOSSPROFIT/LOSSPROFIT/LOSS RESERVERESERVERESERVERESERVERESERVE RESERVERESERVERESERVERESERVERESERVE PREMIUMPREMIUMPREMIUMPREMIUMPREMIUM FLUCTUATIONFLUCTUATIONFLUCTUATIONFLUCTUATIONFLUCTUATION RESERVERESERVERESERVERESERVERESERVE AMOUNTAMOUNTAMOUNTAMOUNTAMOUNT

FUNDFUNDFUNDFUNDFUND FUNDFUNDFUNDFUNDFUND FUNDFUNDFUNDFUNDFUND AND FUNDAND FUNDAND FUNDAND FUNDAND FUND

Opening Balance 224,000,000 7,210,342 1,808,122 - - 22,148 - 233,040,612

Addition during the year 96,000,000 96,000,000

Current Year's Net Profit - 18,748,430 - - - - - 18,748,430

General Reserve - (3,749,686) 3,749,686 - - - - -

Exchange Fluctuation Fund - - - - - (22,148) - (22,148)

…………. - - - - - - - -

Closing Balance 320,000,000 22,209,086 5,557,808 - - 0 - 347,766,894

Figures in NPR

Sanima Bikas Bank LimitedSanima Bikas Bank LimitedSanima Bikas Bank LimitedSanima Bikas Bank LimitedSanima Bikas Bank LimitedSTATEMENT OF CHANGES IN EQUITYSTATEMENT OF CHANGES IN EQUITYSTATEMENT OF CHANGES IN EQUITYSTATEMENT OF CHANGES IN EQUITYSTATEMENT OF CHANGES IN EQUITY

Fiscal Year 2006/07 (2063/64)Fiscal Year 2006/07 (2063/64)Fiscal Year 2006/07 (2063/64)Fiscal Year 2006/07 (2063/64)Fiscal Year 2006/07 (2063/64)

PREVIOUS YEARPREVIOUS YEARPREVIOUS YEARPREVIOUS YEARPREVIOUS YEAR PARTICULARSPARTICULARSPARTICULARSPARTICULARSPARTICULARS THIS YEARTHIS YEARTHIS YEARTHIS YEARTHIS YEAR

16,514,685 (a) Cash flow from Operating Activities 38,156,207

63,338,753 1 Cash Received 133,329,240

57,715,167 1.1 Interest Income 126,368,657

859,391 1.2 Commission and Discount Income 1,649,221

(11,721) 1.3 Income from Foreign Exchange Transaction 747,572

- 1.4 Recovery of Written-off Loans -

4,775,916 1.5 Other Income 4,563,790

46,824,068 2 Cash Payment 95,173,033

26,142,443 2.1 Interest Expenses 65,051,546

8,363,924 2.2 Staff Expenses 11,238,219

8,757,626 2.3 Office Overhead Expenses 10,730,653

3,560,075 2.4 Income Tax Paid 8,152,615

- 2.5 Other Expenses -

18,582,594 Cash Flow Before Working Capital Activities (96,411,055)

(518,651,154) Increase/(Decrease) of Current Assets (1,472,956,979)

(6,973,700) 1 (Increase)/Decrease in Money at Call and Short Notice (254,473,103)

- 2 (Increase)/Decrease in Short-term Investments (466,271,200)

(508,044,475) 3 (Increase)/Decrease in Loan and Bills Purchase (743,283,859)

(3,632,979) 4 (Increase)/Decrease in Other Assets (8,928,817)

537,233,748 Increase/(Decrease) of Current Liabilities 1,376,545,924

511,641,109 1 Increase/(Decrease) in Deposits 1,072,708,691

- 2 Increase/(Decrease) in Certificate of Deposits -

Figures in NPR

Sanima Bikas Bank LimitedSanima Bikas Bank LimitedSanima Bikas Bank LimitedSanima Bikas Bank LimitedSanima Bikas Bank LimitedCASH FLOW STATEMENTCASH FLOW STATEMENTCASH FLOW STATEMENTCASH FLOW STATEMENTCASH FLOW STATEMENT


Contd... on Page 27


27

PREVIOUS YEAR PARTICULARS THIS YEAR

25,000,000 3 Increase/(Decrease) in Short-term Borrowings 299,520,000

592,639 4 Increase/(Decrease) in Other Liabilities 4,317,233

(3,234,666)(3,234,666)(3,234,666)(3,234,666)(3,234,666) (b)(b)(b)(b)(b) Cash flow from Investment ActivitiesCash flow from Investment ActivitiesCash flow from Investment ActivitiesCash flow from Investment ActivitiesCash flow from Investment Activities (3,928,170) (3,928,170) (3,928,170) (3,928,170) (3,928,170)

- 1 (Increase)/Decrease in Long-Term Investment -

(3,234,666) 2 (Increase)/Decrease in Fixed Assets (3,928,170)

----- 3 Interest Income From Long-Term Investment -

- 4 Dividend Income -

- (c) Cash flow from Financing Activities 96,000,000

- 1 Increase/(Decrease) in Long-Term Borrowings (Bonds, Debentures etc.) -

- 2 Increase/(Decrease) in Share Capital 96,000,000

- 3 Increase/(Decrease) in Other Liabilities -

- 4 Increase/(Decrease) in Refinance/Facilities From Nepal Rastra Bank -

88,592 (d) Income/Expenses from change in Exchange Rate in Cash and Bank Balances (1,045,126)

31,951,205 (e) This Year's Cash Flow from All Activities 32,771,856

16,933,659 (f) Opening Balance of Cash and Bank Balances 48,884,864

48,884,864 (g) Closing Balance of Cash and Bank Balances 81,656,720

Contd... from Page 26

Figures in NPR

Sanima Bikas Bank LimitedSanima Bikas Bank LimitedSanima Bikas Bank LimitedSanima Bikas Bank LimitedSanima Bikas Bank LimitedCASH FLOW STATEMENT

For the period from July 17, 2006 to July 16, 2007For the period from July 17, 2006 to July 16, 2007For the period from July 17, 2006 to July 16, 2007For the period from July 17, 2006 to July 16, 2007For the period from July 17, 2006 to July 16, 2007(Shrawan 1, 2063. to Ashad 32, 2064)(Shrawan 1, 2063. to Ashad 32, 2064)(Shrawan 1, 2063. to Ashad 32, 2064)(Shrawan 1, 2063. to Ashad 32, 2064)(Shrawan 1, 2063. to Ashad 32, 2064)













28


224,000,000 1 Share Capital 320,000,000640,000,000 1.1 Authorized Capital 640,000,000640,000,000 a) 6,400,000 Ordinary Shares of Rs. 100 each 640,000,000

- b) …………. Non-redeemable Preference Shares of Rs. ………. each -- c) …………. Redeemable Preference Shares of Rs. ……….. each -

320,000,000 1.2 Issued Capital 320,000,000320,000,000 a) 3,200,000 Ordinary Shares of Rs.100 each 320,000,000

- b) …………. Non-redeemable Preference Shares of Rs. ………. each -- c) …………. Redeemable Preference Shares of Rs. ……….. each -

224,000,000 1.3 Paid up Capital 320,000,000224,000,000 a) 3,200,000 Ordinary Shares of Rs.100 each 320,000,000

- b) …………. Proposed Bonus Shares Rs. …….. each - - c) …………. Non-redeemable Preference Shares of Rs. ………. each -- d) …………. Redeemable Preference Shares of Rs. ……….. each

Figures in NPR

Schedule 4.1Schedule 4.1Schedule 4.1Schedule 4.1Schedule 4.1Sanima Bikas Bank LimitedSanima Bikas Bank LimitedSanima Bikas Bank LimitedSanima Bikas Bank LimitedSanima Bikas Bank Limited

SHARE CAPITAL AND OWNERSHIPSHARE CAPITAL AND OWNERSHIPSHARE CAPITAL AND OWNERSHIPSHARE CAPITAL AND OWNERSHIPSHARE CAPITAL AND OWNERSHIPAs on July 16, 2007As on July 16, 2007As on July 16, 2007As on July 16, 2007As on July 16, 2007

PREVIOUS YEARPREVIOUS YEARPREVIOUS YEARPREVIOUS YEARPREVIOUS YEAR %%%%% PARTICULARSPARTICULARSPARTICULARSPARTICULARSPARTICULARS %%%%% THIS YEARTHIS YEARTHIS YEARTHIS YEARTHIS YEAR

224,000,000 1 Local Ownership 320,000,000

- 1.1 Nepal Government -

- 1.2 "A" Class Licensed Institutions -

- 1.3 Other Financial Institutions -

- 1.4 Other Institutions -

- 1.5 General Public 30 96,000,000

224,000,000 100 1.6 Others 70 224,000,000

- 2 Foreign Ownership -

224,000,000 Total 320,000,000

SHARE OWNERSHIPSHARE OWNERSHIPSHARE OWNERSHIPSHARE OWNERSHIPSHARE OWNERSHIP

Figures in NPR


29

LIST OF SHAREHOLDER'S HOLDINGLIST OF SHAREHOLDER'S HOLDINGLIST OF SHAREHOLDER'S HOLDINGLIST OF SHAREHOLDER'S HOLDINGLIST OF SHAREHOLDER'S HOLDINGMORE THAN 0.5 % OF PAID-UP SHARE CAPITALMORE THAN 0.5 % OF PAID-UP SHARE CAPITALMORE THAN 0.5 % OF PAID-UP SHARE CAPITALMORE THAN 0.5 % OF PAID-UP SHARE CAPITALMORE THAN 0.5 % OF PAID-UP SHARE CAPITAL

SR. NO.SR. NO.SR. NO.SR. NO.SR. NO. NAME OF THE PROMOTERSNAME OF THE PROMOTERSNAME OF THE PROMOTERSNAME OF THE PROMOTERSNAME OF THE PROMOTERS NO. OF SHARESNO. OF SHARESNO. OF SHARESNO. OF SHARESNO. OF SHARES AMOUNTAMOUNTAMOUNTAMOUNTAMOUNT PERCENTAGEPERCENTAGEPERCENTAGEPERCENTAGEPERCENTAGE

1 Mr. Tek Raj Niraula 448,000 44,800,000 14.002 Mr. Arun Kumar Ojha 448,000 44,800,000 14.003 Mr. Binay Kumar Shrestha 175,000 17,500,000 5.474 Mr. Ghanshyam Thapa 174,000 17,400,000 5.445 Mr. Ramkrishna Shah 120,000 12,000,000 3.756 Mr. Dilip Shrestha 52,000 5,200,000 1.637 Mr. Dineshmani Shrestha 73,000 7,300,000 2.288 Mr. Jibanath Lamichhane 200,000 20,000,000 6.259 Mr. Khemraj Lamichhane 150,000 15,000,000 4.69

10 Mr. Ganesh Prasad Pokhrel 20,000 2,000,000 0.6311 Dr. Niraj Govinda Shrestha 200,000 20,000,000 6.2512 Dr. Birendra Prasad Mahato 150,000 15,000,000 4.6913 Namkhang Lama 22,620 2,262,000 0.7114 Sonam Gyatso 22,760 2,276,000 0.7115 Shamba Lama 23,180 2,318,000 0.72

PREVIOUS YEAR PARTICULARS THIS YEARTHIS YEARTHIS YEARTHIS YEARTHIS YEAR

1,808,122 1 General Reserve Fund 5,557,808- 2 Capitalization Reserve Fund -- 3 Capital Redemption Reserve -- 4 Other Reserve Fund -- a. Contingent Reserve -

- b. Institution Development Fund -- c. Dividend Equalization Fund -- d. Special Reserve Fund -- e. Assets Revaluation Reserve -- f. Other Free Reserves -

7,210,342 5 Accumulated Profit/(Loss) 22,209,08622,148 6 Exchange Equalization Fund -

9,040,612 Total 27,766,894

Figures in NPR


RESERVE AND FUNDSRESERVE AND FUNDSRESERVE AND FUNDSRESERVE AND FUNDSRESERVE AND FUNDSAs on July 16, 2007As on July 16, 2007As on July 16, 2007As on July 16, 2007As on July 16, 2007


- 1 ……………. Percent Bonds/Debentures of Rs. ………… each -- Issued on …………… and Matured on ………….. -- (Outstanding balance of Redemption Reserve Rs. …………….) -- 2 ……………. Percent Bond/Debentures of Rs. ………… each -

- Issued on …………… and Matured on ………….. -- (Outstanding Balance of Redemption Reserve Rs. …………….) -- 3 ……………… ------ Total (1+2+3) -

Figures in NPR

Schedule 4.3Schedule 4.3Schedule 4.3Schedule 4.3Schedule 4.3Sanima Bikas Bank LimitedSanima Bikas Bank LimitedSanima Bikas Bank LimitedSanima Bikas Bank LimitedSanima Bikas Bank LimitedDEBENTURES AND BONDSDEBENTURES AND BONDSDEBENTURES AND BONDSDEBENTURES AND BONDSDEBENTURES AND BONDS

As on July 16, 2007As on July 16, 2007As on July 16, 2007As on July 16, 2007As on July 16, 2007


30


1 Non-Interest Bearing Accounts

19,073,673 A. Current Deposits 46,338,850

19,073,673 1. Local Currency 46,270,960

- 1.1 Nepal Government 537,590


110,000 1.3 Other Licensed Financial Institutions 40,000

9,100,433 1.4 Other Organized Institutions 40,916,053

9,731,897 1.5 Individuals 4,777,317

131,343 1.6 Others

- 2. Foreign Currency 67,890

- 2.1 Nepal Government -


- 2.3 Other Licensed Financial Institutions -

- 2.4 Other Organized Institutions 60,228

- 2.5 Individuals 7,662

- 2.6 Others -

3,525,550 B. Margin Deposits 1,173,920

- 1 Employee Guarantees -

3,525,550 2 Guarantee Margin 1,173,920

Figures in NPR

Contd... on Page 31


DEPOSITSDEPOSITSDEPOSITSDEPOSITSDEPOSITSAs on July 16, 2007As on July 16, 2007As on July 16, 2007As on July 16, 2007As on July 16, 2007


A. Local- 1 Nepal Government -- 2 Nepal Rastra Bank -- 3 Repo Obligation -

25,000,000 4 Inter Bank and Financial Institutions 324,520,000- 5 Other Financial Institutions -- 6 Others -

25,000,000 Total 324,520,000- B. Foreign -- 1 Banks -

- 2 Others -- Total -

25,000,000 Total (A+B) 324,520,000

Figures in NPR


BORROWINGSBORROWINGSBORROWINGSBORROWINGSBORROWINGSAs on July 16, 2007As on July 16, 2007As on July 16, 2007As on July 16, 2007As on July 16, 2007


31

PREVIOUS YEAR PARTICULARS THIS YEAR

- 3 Letters of Credit Margin -C. Others

- 1. Local Currency -

- 1.1 Financial Institutions -

- 1.2 Other Organized Institutions -

- 1.3 Individuals -

- 2. Foreign Currency -

- 2.1 Financial Institutions -


- 2.3 Individuals -

22,599,223 Total of Non-Interest Bearing Accounts 47,512,770

- 2 Interest Bearing Accounts -

223,662,116 A. Savings Deposits 413,686,068

208,029,513 1. Local Currency 382,621,519

36,274,059 1.1 Organized Institutions 42,097,927

171,755,454 1.2 Individuals 340,523,592

- 1.3 Others -

15,632,603 2. Foreign Currency 31,064,549

- 2.1 Organized Institutions -

15,632,603 2.2 Individuals 31,064,549

- 2.3 Others -

234,213,750 B. Fixed Deposits 1,149,684,393

234,213,750 1. Local Currency 773,687,932

122,113,750 1.1 Organized Institutions 677,821,926

102,100,000 1.2 Individuals 95,866,006

10,000,000 1.3 Others -

- 2. Foreign Currency 375,996,461

- 2.1 Organized Institutions -

- 2.2 Individuals 375,996,461

- 2.3 Others -

269,521,275 C. Call Deposits 211,821,824

269,521,275 1. Local Currency 211,821,824


263,902,763 1.2 Other Licensed Institutions 137,579,486

Contd... on Page 32


Figures in NPR




32


- 1. Local Currency -- 2. Foreign Currency -- Total -

Schedule 4.6Schedule 4.6Schedule 4.6Schedule 4.6Schedule 4.6Sanima Bikas Bank LimitedSanima Bikas Bank LimitedSanima Bikas Bank LimitedSanima Bikas Bank LimitedSanima Bikas Bank Limited.

BILLS PAYABLEBILLS PAYABLEBILLS PAYABLEBILLS PAYABLEBILLS PAYABLEAs on July 16, 2007As on July 16, 2007As on July 16, 2007As on July 16, 2007As on July 16, 2007

Figures in NPR



Figures in NPR


- 1 Pension/Gratuity Fund -921 2 Employees Provident Fund -

- 3 Employees Welfare Fund -1,214,601 4 Provision for Staff Bonus 2,667,433

- 5 Interest Payable on Deposits -10,479 6 Interest Payable on Borrowings 1,698,130

320,250 7 Unearned Discount and Commission 362,31220,091 8 Sundry Creditors 100,000

- 9 Branch Adjustment Account -1,128,079 10 Others 6,911,6522,694,421 Total 11,739,527


OTHER LIABILITIESOTHER LIABILITIESOTHER LIABILITIESOTHER LIABILITIESOTHER LIABILITIESAs on July 16, 2007As on July 16, 2007As on July 16, 2007As on July 16, 2007As on July 16, 2007

Figures in NPR


5,618,512 1.3 Other Organized Institutions 74,242,338

- 1.4 Individuals -

- 1.5 Others -

- 2. Foreign Currency -


- 2.2 Other Licensed Institutions -


- 2.4 Individuals -

- 2.5 Others -

- D. Certificate of Deposit -

- 1. Organized Institutions -

- 2. Individuals -

- 3. Others -

727,397,141 Total of Interest Bearing Accounts 1,775,192,285

749,996,364 Total Deposit (1+2) 1,822,705,055



33


14,717,905 1. Local Currency (including coin) 22,066,0061,706,720 2. Foreign Currency 3,340,949

16,424,625 Total 25,406,955


CASH BALANCECASH BALANCECASH BALANCECASH BALANCECASH BALANCEAs on July 16, 2007As on July 16, 2007As on July 16, 2007As on July 16, 2007As on July 16, 2007

Figures in NPR

PREVIOUS YEARPREVIOUS YEARPREVIOUS YEARPREVIOUS YEARPREVIOUS YEAR PARTICULARSPARTICULARSPARTICULARSPARTICULARSPARTICULARS LOCAL CURRENCYLOCAL CURRENCYLOCAL CURRENCYLOCAL CURRENCYLOCAL CURRENCY FOREIGN CURRENCYFOREIGN CURRENCYFOREIGN CURRENCYFOREIGN CURRENCYFOREIGN CURRENCY THIS YEARTHIS YEARTHIS YEARTHIS YEARTHIS YEAR

INDIANINDIANINDIANINDIANINDIAN CONVERTIBLECONVERTIBLECONVERTIBLECONVERTIBLECONVERTIBLE TOTALTOTALTOTALTOTALTOTAL GRAND TOTALGRAND TOTALGRAND TOTALGRAND TOTALGRAND TOTAL

CURRENCYCURRENCYCURRENCYCURRENCYCURRENCY

30,534,788 1 Nepal Rastra Bank 50,870,018 - 861,342 - 51,731,36030,534,788 a) Current Account 50,175,839 - 861,342 - 51,037,181

- b) Other Account 694,179 - - - 694,179


BALANCE WITH NEPAL RASTRA BANKBALANCE WITH NEPAL RASTRA BANKBALANCE WITH NEPAL RASTRA BANKBALANCE WITH NEPAL RASTRA BANKBALANCE WITH NEPAL RASTRA BANKAs on July 16, 2007As on July 16, 2007As on July 16, 2007As on July 16, 2007As on July 16, 2007

Figures in NPR

Note: Total Balance for which the confirmations are received from the respective licensed institutions Rs. 5,331,711

PREVIOUS YEARPREVIOUS YEARPREVIOUS YEARPREVIOUS YEARPREVIOUS YEAR PARTICULARSPARTICULARSPARTICULARSPARTICULARSPARTICULARS LOCAL CURRENCYLOCAL CURRENCYLOCAL CURRENCYLOCAL CURRENCYLOCAL CURRENCY FOREIGN CURRENCYFOREIGN CURRENCYFOREIGN CURRENCYFOREIGN CURRENCYFOREIGN CURRENCY THIS YEARTHIS YEARTHIS YEARTHIS YEARTHIS YEAR

INDIANINDIANINDIANINDIANINDIAN CONVERTIBLECONVERTIBLECONVERTIBLECONVERTIBLECONVERTIBLE TOTALTOTALTOTALTOTALTOTAL GRAND TOTALGRAND TOTALGRAND TOTALGRAND TOTALGRAND TOTAL

CURRENCYCURRENCYCURRENCYCURRENCYCURRENCY

1,925,451 1 Local Licensed Institutions 1,429,549 - 1,395,262 1,395,262 2,824,8111,925,451 a) Current Account 1,429,549 - 1,395,262 1,395,262 2,824,811

- b) Other Account - - - - -- 2 Foreign Banks - 1,693,594 - 1,693,594 1,693,594- a) Current Account 1,693,594 - 1,693,594 1,693,594- b) Other Account - - - - -

1,925,451 Total 1,429,549 1,693,594 1,395,262 3,088,856 4,518,405


BALANCE WITH BANKS/FINANCIAL INSTITUTIONSBALANCE WITH BANKS/FINANCIAL INSTITUTIONSBALANCE WITH BANKS/FINANCIAL INSTITUTIONSBALANCE WITH BANKS/FINANCIAL INSTITUTIONSBALANCE WITH BANKS/FINANCIAL INSTITUTIONSAs on July 16, 2007As on July 16, 2007As on July 16, 2007As on July 16, 2007As on July 16, 2007

Figures in NPR


147,884,690 1. Local Currency 358,783,41529,075,781 2. Foreign Currency 72,650,159

176,960,471 Total 431,433,574


MONEY AT CALL AND SHORT NOTICEMONEY AT CALL AND SHORT NOTICEMONEY AT CALL AND SHORT NOTICEMONEY AT CALL AND SHORT NOTICEMONEY AT CALL AND SHORT NOTICEAs on July 16, 2007As on July 16, 2007As on July 16, 2007As on July 16, 2007As on July 16, 2007

Figures in NPR


34

PREVIOUS YEARPREVIOUS YEARPREVIOUS YEARPREVIOUS YEARPREVIOUS YEAR PARTICULARSPARTICULARSPARTICULARSPARTICULARSPARTICULARS PURPOSEPURPOSEPURPOSEPURPOSEPURPOSE THIS YEARTHIS YEARTHIS YEARTHIS YEARTHIS YEAR

TRADINGTRADINGTRADINGTRADINGTRADING OTHEROTHEROTHEROTHEROTHER

- 1 Nepal Government Treasury Bills - - -- 2 Nepal Government Savings Bond - - -

- 3 Nepal Government Other Securities - - - - 4 Nepal Rastra Bank Bonds - - -- 5 Foreign Securities - - -- 6 Local Licensed Institutions - 466,271,200 466,271,200

- 7 Foreign Banks - - - - 8 Origanized Insrtitutions Shares - - -- 9 Corporate Bonds and Debentures - - -- 10 Other Investments - - -

- Total Investment - 466,271,200 466,271,200- Provision - - -- Net Investment - 466,271,200 466,271,200


INVESTMENTSINVESTMENTSINVESTMENTSINVESTMENTSINVESTMENTSAs on July 16, 2007As on July 16, 2007As on July 16, 2007As on July 16, 2007As on July 16, 2007

Figures in NPR

PREVIOUS YEARPREVIOUS YEARPREVIOUS YEARPREVIOUS YEARPREVIOUS YEAR PARTICULARSPARTICULARSPARTICULARSPARTICULARSPARTICULARS COST PRICECOST PRICECOST PRICECOST PRICECOST PRICE MARKET PRICEMARKET PRICEMARKET PRICEMARKET PRICEMARKET PRICE PROVISIONPROVISIONPROVISIONPROVISIONPROVISION

- 1 Investment in Shares - - - ` - 1.1 ...….. Co. (Pvt. Ltd./Ltd.) - - -

- ……. Ordinary Shares of Rs. ……. Paid up - - -- 1.2 …….. Co. (Pvt. Ltd./Ltd.) - - -- ……. Ordinary Shares (including …….. Bonus Shares of Rs.

…….. Paid up. - - -- 1.3 …….. Co. (Pvt. Ltd./Ltd.) - - -- …….. % preference shares of Rs. ……. Paid up. - - -

- 2 Investment in Debentures and Bonds - - -- 2.1 …….. Co. (Pvt. Ltd./Ltd.) - - -- …….. % ……… Debentures/Bonds of Rs. ……. each - - -

- 2.2 ……… - - -- 2.3 ………. - - -- Total Investment - - -- 3 Provision for Loss - - -- 3.1 Provision Up to Previous Year - - -- 3.2 Additions This Year - - -- Total Provision - - -- Net Investment - - -

Schedule 4.12 (A)Schedule 4.12 (A)Schedule 4.12 (A)Schedule 4.12 (A)Schedule 4.12 (A)Sanima Bikas Bank LimitedSanima Bikas Bank LimitedSanima Bikas Bank LimitedSanima Bikas Bank LimitedSanima Bikas Bank Limited

INVESTMENT IN SHARES, DEBENTURES AND BONDSINVESTMENT IN SHARES, DEBENTURES AND BONDSINVESTMENT IN SHARES, DEBENTURES AND BONDSINVESTMENT IN SHARES, DEBENTURES AND BONDSINVESTMENT IN SHARES, DEBENTURES AND BONDSAs on July 16, 2007As on July 16, 2007As on July 16, 2007As on July 16, 2007As on July 16, 2007

Figures in NPR


35

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Figu

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PR


36


758,632,665 (A) Secured 1,501,916,524

740,537,665 1 Movable/Immovable Assets 1,140,744,024

- 2 Guarantee of Local Licensed Institutions -

- 3 Government Guarantee -

- 4 Internationally Rated Bank Guarantee -

- 5 Export Documents -

- 6 Fixed Deposit Receipts -

18,095,000 a) Own Fixed Deposit Receipt 361,172,500

- b) Fixed Deposit Receipt of Other Licensed Institutions -

- 7 Government Bonds -

- 8 Counter Guarantee -

- 9 Personal Guarantee -

- 10 Other Securities -

- (B) Unsecured -

758,632,665 Total 1,501,916,524

Schedule 4.13 (A)Schedule 4.13 (A)Schedule 4.13 (A)Schedule 4.13 (A)Schedule 4.13 (A)Sanima Bikas Bank LimitedSanima Bikas Bank LimitedSanima Bikas Bank LimitedSanima Bikas Bank LimitedSanima Bikas Bank Limited

LOANS, ADVANCES AND BILLS PUCHASED SECURITY WISELOANS, ADVANCES AND BILLS PUCHASED SECURITY WISELOANS, ADVANCES AND BILLS PUCHASED SECURITY WISELOANS, ADVANCES AND BILLS PUCHASED SECURITY WISELOANS, ADVANCES AND BILLS PUCHASED SECURITY WISEAs on July 16, 2007As on July 16, 2007As on July 16, 2007As on July 16, 2007As on July 16, 2007

Figures in NPR


37

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**** *Wri

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38

PREVIOUS YEARPREVIOUS YEARPREVIOUS YEARPREVIOUS YEARPREVIOUS YEAR NAME AND ADDRESSNAME AND ADDRESSNAME AND ADDRESSNAME AND ADDRESSNAME AND ADDRESS DATE OF ACCEPTDATE OF ACCEPTDATE OF ACCEPTDATE OF ACCEPTDATE OF ACCEPT TOTAL AMOUNT OFTOTAL AMOUNT OFTOTAL AMOUNT OFTOTAL AMOUNT OFTOTAL AMOUNT OF LOSS PROVISIONLOSS PROVISIONLOSS PROVISIONLOSS PROVISIONLOSS PROVISION NET NON-BANKINGNET NON-BANKINGNET NON-BANKINGNET NON-BANKINGNET NON-BANKING

OF BORROWEROF BORROWEROF BORROWEROF BORROWEROF BORROWER NON-BANKINGNON-BANKINGNON-BANKINGNON-BANKINGNON-BANKING NON-BANKINGNON-BANKINGNON-BANKINGNON-BANKINGNON-BANKING IN PERCANTAGEIN PERCANTAGEIN PERCANTAGEIN PERCANTAGEIN PERCANTAGE IN AMOUNTIN AMOUNTIN AMOUNTIN AMOUNTIN AMOUNT ASSETS THIS YEARASSETS THIS YEARASSETS THIS YEARASSETS THIS YEARASSETS THIS YEAR

OR PARTYOR PARTYOR PARTYOR PARTYOR PARTY ASSETSASSETSASSETSASSETSASSETS ASSETSASSETSASSETSASSETSASSETS

- - - - - - -

- - - - - - -

- - - - - - -

- - - - - - -

- - - - - - -

- - - - - - -

- - - - - - -

- - - - - - -

- - - - - - -

- - - - - - -

- GRAND TOTAL - - - - -


NON-BANKING ASSETSNON-BANKING ASSETSNON-BANKING ASSETSNON-BANKING ASSETSNON-BANKING ASSETSAs on July 16, 2007As on July 16, 2007As on July 16, 2007As on July 16, 2007As on July 16, 2007

Figures in NPR


239,296 1 Stationery Stock 271,7622 Income Receivable on Investments 3,499,6223 Accrued Interest on Loan 2,354,950

1,857,032 Less : Interest Suspense Amount 2,354,950 -- 4 Commission Receivable -

318,713 5 Sundry Debtors -3,787,118 6 Staff Loans and Advances 8,652,564

346,655 7 Prepaid Expenses 246,109- 8 Cash in Transit -

3,177,057 9 Other Transit items ( including cheques ) 5,062,524- 10 Drafts Paid without Notice -

4,832,444 11 Expenses Not Written off 5,230,955 - 12 Branch account -

3,886,024 13 Other 1,404,85418,444,339 Total 24,368,390


OTHER ASSETSOTHER ASSETSOTHER ASSETSOTHER ASSETSOTHER ASSETSAs on July 16, 2007As on July 16, 2007As on July 16, 2007As on July 16, 2007As on July 16, 2007

Figures in NPR


39


- 1 Claims on Institution but not accepted by the Institution -- 2 Letters of Credit (Full Amount) -- a) Less than 6 months Maturity -- b) More than 6 months Maturity -- 3 Rediscounted Bills -

4 Unmatured Guarantees/Bonds800,000 a) Bid Bonds 10,369,000

17,708,200 b) Performance Bonds 18,748,900- c) Other Guarantees/Bonds -- 5 Unpaid Shares in Investment -- 6 Forward Exchange Contract Liabilities -- 7 Bills under Collection -- 8 Acceptance and Endorsements -- 9 Underwriting Commitments -

42,562,267 10 Irrevocable Loan Commitments -- 11 Counter Guarantee of Internationally Rated Banks -

6,282,000 12 Advance Payment Guarantee 2,700,00014,150,000 13 Financial Guarantee 19,100,000

- 14 Contingent Liabilities on Income Tax -- 15 ………… -- 16 …………. -- 17 …………. -

81,502,467 Total 50,917,900

Schedule 4.17Schedule 4.17Schedule 4.17Schedule 4.17Schedule 4.17Sanima Bikas Bank LimitedSanima Bikas Bank LimitedSanima Bikas Bank LimitedSanima Bikas Bank LimitedSanima Bikas Bank LimitedCONTINGENT LIABILITIESCONTINGENT LIABILITIESCONTINGENT LIABILITIESCONTINGENT LIABILITIESCONTINGENT LIABILITIES


Figures in NPR

THIS YEARTHIS YEARTHIS YEARTHIS YEARTHIS YEAR

PREVIOUS YEARPREVIOUS YEARPREVIOUS YEARPREVIOUS YEARPREVIOUS YEAR PARTICULARSPARTICULARSPARTICULARSPARTICULARSPARTICULARS UP TO 1 YEARUP TO 1 YEARUP TO 1 YEARUP TO 1 YEARUP TO 1 YEAR 1 TO 31 TO 31 TO 31 TO 31 TO 3 ABOVE 3ABOVE 3ABOVE 3ABOVE 3ABOVE 3 TOTAL THISTOTAL THISTOTAL THISTOTAL THISTOTAL THIS

YEARSYEARSYEARSYEARSYEARS YEARSYEARSYEARSYEARSYEARS YEARYEARYEARYEARYEAR

1,946,431 1 Accrued Interest on Loan 2,354,950 - - 2,354,950- 2 Drafts Paid without Notice - - - -

- 3 Branch Adjustment Account - - - -3,424,491 4 Local and Foreign Agency A/Cs 3,715,071 - - 3,715,071

Schedule 4.16 (A) Schedule 4.16 (A) Schedule 4.16 (A) Schedule 4.16 (A) Schedule 4.16 (A)Sanima Bikas Bank LimitedSanima Bikas Bank LimitedSanima Bikas Bank LimitedSanima Bikas Bank LimitedSanima Bikas Bank Limited

OTHER ASSETS (ADDITIONAL STATEMENT)OTHER ASSETS (ADDITIONAL STATEMENT)OTHER ASSETS (ADDITIONAL STATEMENT)OTHER ASSETS (ADDITIONAL STATEMENT)OTHER ASSETS (ADDITIONAL STATEMENT)As on July 16, 2007As on July 16, 2007As on July 16, 2007As on July 16, 2007As on July 16, 2007

Figures in NPR


40


51,654,448 A. On Loans, Advances and Overdraft 101,009,563

43,560,271 1 Loans and Advances 85,952,391

8,094,177 2 Overdraft 15,057,172

- B. On Investments -

- 1 Nepal Government Securities -

- a. Treasury Bills -

- b. Development Bonds -

- c. National Savings Certificates -

- 2 Foreign Securities -

- a. ……….. -

- b. ………. -

- 3 Nepal Rastra Bank Bond -

- 4 Debenture and Bonds -

- a. Financial Institutions -

- b. Other Organizations -

- C. On Agency Balances -

- 1 Local Banks -

- 2 Foreign Banks -

9,099,196 D. On Money at Call and Short Notice 15,155,606

9,099,196 1 Local Banks/Financial Institutions 15,155,606

- 2 Foreign Banks -

74,795 E. On Others 8,637,036

- 1 Certificate of Deposits -

74,795 2 Inter-Bank Loan 8,637,036

- 3 Others

60,828,439 Total 124,802,205


INTEREST INCOMEINTEREST INCOMEINTEREST INCOMEINTEREST INCOMEINTEREST INCOMEFor the period from July 17, 2006 to July 16, 2007For the period from July 17, 2006 to July 16, 2007For the period from July 17, 2006 to July 16, 2007For the period from July 17, 2006 to July 16, 2007For the period from July 17, 2006 to July 16, 2007

(Shrawan 01, 2063 to Ashad 32, 2064)(Shrawan 01, 2063 to Ashad 32, 2064)(Shrawan 01, 2063 to Ashad 32, 2064)(Shrawan 01, 2063 to Ashad 32, 2064)(Shrawan 01, 2063 to Ashad 32, 2064)

Figures in NPR


41


23,500,607 A. On Deposit Liabilities 59,600,023

7,553,178 1 Fixed Deposits 35,340,556

7,553,178 1.1 Local Currency 27,108,317

- 1.2 Foreign Currency 8,232,239

6,693,167 2 Savings Deposits 14,769,912

6,681,226 2.1 Local Currency 14,477,977

11,941 2.2 Foreign Currency 291,935

9,254,262 3 Call Deposits 9,489,555

9,254,262 3.1 Local Currency 9,489,555

- 3.2 Foreign Currency -

- 4 Certificate of Deposits -

2,652,315 B. On Borrowings 7,149,653

- 1 Debentures and Bonds -

- 2 Loan from Nepal Rastra Bank -

2,652,315 3 Inter Bank/Financial Institutions Borrowing 7,149,653

- 4 Other Corporate Body -

- 5 Other Loans -

- C. On Others -

- 1 ……………… -

- 2 ………………. -

26,152,922 Total 66,749,676


INTEREST EXPENSESINTEREST EXPENSESINTEREST EXPENSESINTEREST EXPENSESINTEREST EXPENSESFor the period from July 17, 2006 to July 16, 2007For the period from July 17, 2006 to July 16, 2007For the period from July 17, 2006 to July 16, 2007For the period from July 17, 2006 to July 16, 2007For the period from July 17, 2006 to July 16, 2007

(Shrawan 01, 2063 to Ashad 32, 2064)(Shrawan 01, 2063 to Ashad 32, 2064)(Shrawan 01, 2063 to Ashad 32, 2064)(Shrawan 01, 2063 to Ashad 32, 2064)(Shrawan 01, 2063 to Ashad 32, 2064)Figures in NPR


- A. Bills Purchase and Discount -- 1 Local -

- 2 Foreign -411,096 B. Commission 1,107,109

- 1 Letters of Credit -348,999 2 Guarantee 646,295

50,034 3 Collection Fee 340,048 - 4 Remittance Fee -- 5 Credit Cards -- 6 Share Underwriting/Issues -

- 7 Government Transactions -- 8 Agency Commission -

12,063 9 Exchange Income 120,766128,045 C. Others 179,800

- -539,141 Total 1,286,909

Schedule 4.20

Sanima Bikas Bank LimitedSanima Bikas Bank LimitedSanima Bikas Bank LimitedSanima Bikas Bank LimitedSanima Bikas Bank LimitedCOMMISSION AND DISCOUNTCOMMISSION AND DISCOUNTCOMMISSION AND DISCOUNTCOMMISSION AND DISCOUNTCOMMISSION AND DISCOUNT

For the period from July 17, 2006 to July 16, 2007For the period from July 17, 2006 to July 16, 2007For the period from July 17, 2006 to July 16, 2007For the period from July 17, 2006 to July 16, 2007For the period from July 17, 2006 to July 16, 2007(Shrawan 01, 2063 to Ashad 32, 2064)(Shrawan 01, 2063 to Ashad 32, 2064)(Shrawan 01, 2063 to Ashad 32, 2064)(Shrawan 01, 2063 to Ashad 32, 2064)(Shrawan 01, 2063 to Ashad 32, 2064)

Figures in NPR


42


67,500 1 Rental on Safe Deposit Lockers 135,750- 2 Issue and Renewals of Credit Cards -

- 3 Issue and Renewals of ATM Cards -- 4 Telex/T.T. 66,216

4,695,915 5 Service Charges 4,111,992- 6 Renewal Fees -

12,501 7 Others 249,8324,775,916 Total 4,563,790


OTHER OPERATING INCOMEOTHER OPERATING INCOMEOTHER OPERATING INCOMEOTHER OPERATING INCOMEOTHER OPERATING INCOMEFor the period from July 17, 2006 to July 16, 2007For the period from July 17, 2006 to July 16, 2007For the period from July 17, 2006 to July 16, 2007For the period from July 17, 2006 to July 16, 2007For the period from July 17, 2006 to July 16, 2007


Figures in NPR


88,592 (A) Revaluation Gain (1,022,978) (11,721) (B) Trading Gain (Except Exchange Income) 747,572

76,871 Total Income/(Loss) (275,406)

SCHEDULE 4.22SCHEDULE 4.22SCHEDULE 4.22SCHEDULE 4.22SCHEDULE 4.22Sanima Bikas Bank LimitedSanima Bikas Bank LimitedSanima Bikas Bank LimitedSanima Bikas Bank LimitedSanima Bikas Bank Limited

EXCHANGE GAIN/LOSSEXCHANGE GAIN/LOSSEXCHANGE GAIN/LOSSEXCHANGE GAIN/LOSSEXCHANGE GAIN/LOSSFor the period from July 17, 2006 to July 16, 2007For the period from July 17, 2006 to July 16, 2007For the period from July 17, 2006 to July 16, 2007For the period from July 17, 2006 to July 16, 2007For the period from July 17, 2006 to July 16, 2007


Figures in NPR


4,607,709 1 Salary 6,258,4603,020,970 2 Allowances 3,902,040

396,072 3 Contribution to Provident Fund 563,62277,500 4 Training Expenses 73,020

146,856 5 Uniform 167,670- 6 Medical -- 7 Insurance -- 8 Pension and Gratuity Provision -

115,738 9 Others 273,407 - -

8,364,845 Total 11,238,219


EMPLOYEE EXPENSESEMPLOYEE EXPENSESEMPLOYEE EXPENSESEMPLOYEE EXPENSESEMPLOYEE EXPENSESFor the period from July 17, 2006 to July 16, 2007For the period from July 17, 2006 to July 16, 2007For the period from July 17, 2006 to July 16, 2007For the period from July 17, 2006 to July 16, 2007For the period from July 17, 2006 to July 16, 2007


Figures in NPR


43


1,937,250 1 House Rent 2,366,250 478,858 2 Electricity and Water 622,931

85,856 3 Repair and Maintenance 150,259- (a) Building -

12,426 (b) Vehicles 68,22773,430 (c) Others (Software) 82,032

385,705 4 Insurance 484,074361,858 5 Postage, Telex, Telephone, Fax 586,944

42,722 6 Office Equipment, Furniture and Repair 148,015370,319 7 Traveling Allowances and Expenses 246,741456,412 8 Stationery and Printing 582,496

11,906 9 Periodicals and Books 24,9942,075,205 10 Advertisements 1,587,022

138,917 11 Legal Expenses 100,000 200 12 Donations 53,850

633,209 13 Expenses Relating to Board of Directors 469,523561,500 (a) Meeting Fees 352,000

71,709 (b) Other Expenses 117,52316,957 14 Annual General Meeting Expenses 681,306

157,180 15 Expenses Relating to Audit 160,65079,100 (a) Audit Fees 90,40078,080 (b) Other Expenses 70,250

- 16 Commission on Remittances 40,8492,276,044 17 Depreciation on Fixed Assets 2,389,4971,214,632 18 Amortization of Preliminary Expenses 1,214,632

- 19 Share Issue Expenses 240,300- 20 Technical Services Fee -

162,991 21 Entertainment 268,068928,769 22 Written Off Expenses 1,039,925455,070 23 Security Expenses 660,187

- 24 Credit Guarantee Premium -- 25 Commission and Discount -

987,012 26 Others 1,496,49332,390 26.1 Local Conveyance Exp. 26,25357,812 26.2 Office Maintenance 159,081

416,969 26.3 Vehicle Fuel & Tax 638,3346,675 26.4 Office Equipement (Non-Capitalized) 23,810

302,225 26.5 Consultancy Service Fees & Expenses 330,61593,475 26.6 Membership Fee 167,12077,466 26.7 Miscellaneous 151,280

13,177,072 Total 15,615,006

Schedule 4.24

Sanima Bikas Bank LimitedSanima Bikas Bank LimitedSanima Bikas Bank LimitedSanima Bikas Bank LimitedSanima Bikas Bank LimitedOTHER OVERHEAD EXPENSESOTHER OVERHEAD EXPENSESOTHER OVERHEAD EXPENSESOTHER OVERHEAD EXPENSESOTHER OVERHEAD EXPENSES

For the period July 17, 2006 to July 16, 2007For the period July 17, 2006 to July 16, 2007For the period July 17, 2006 to July 16, 2007For the period July 17, 2006 to July 16, 2007For the period July 17, 2006 to July 16, 2007(Shrawan 01, 2063 to Ashad 32, 2064)(Shrawan 01, 2063 to Ashad 32, 2064)(Shrawan 01, 2063 to Ashad 32, 2064)(Shrawan 01, 2063 to Ashad 32, 2064)(Shrawan 01, 2063 to Ashad 32, 2064)

Figures in NPR


44


5,164,920 1 Increase in Loan Loss Provision 7,432,838- 2 Increase in Provison for Loss on Investment -- 3 Provision Against Non-Banking Assets -- 4 Provision Against Other Assets -

5,164,920 Total 7,432,838


PROVISION FOR POSSIBLE LOSSESPROVISION FOR POSSIBLE LOSSESPROVISION FOR POSSIBLE LOSSESPROVISION FOR POSSIBLE LOSSESPROVISION FOR POSSIBLE LOSSESFor the period July 17, 2006 to July 16, 2007For the period July 17, 2006 to July 16, 2007For the period July 17, 2006 to July 16, 2007For the period July 17, 2006 to July 16, 2007For the period July 17, 2006 to July 16, 2007


Figures in NPR


- 1 Profit (Loss) on Sale of Investment -- 2 Profit (Loss) on Sale of Assets -- 3 Dividend -- 4 Subsidies Received from Nepal Ratra Bank -- a. Reimbursement of Losses of Specified Branches -- b. Interest Subsidy -- c. Exchange Counter -- 5 Others -- Total Non-Operating Income (Loss) -


NON-OPERATING INCOME/LOSSNON-OPERATING INCOME/LOSSNON-OPERATING INCOME/LOSSNON-OPERATING INCOME/LOSSNON-OPERATING INCOME/LOSSFor the period July 17, 2006 to July 16, 2007For the period July 17, 2006 to July 16, 2007For the period July 17, 2006 to July 16, 2007For the period July 17, 2006 to July 16, 2007For the period July 17, 2006 to July 16, 2007


Figures in NPR


----- 1 Loan Loss Provision Written Back ---------- 2 Provision against Non-Banking Assets Written Back ---------- 3 Investment Provision Written Back ---------- 4 Provision against Other Assets Written back -----

- TOTAL -


LOSS PROVISIONS WRITTEN BACKLOSS PROVISIONS WRITTEN BACKLOSS PROVISIONS WRITTEN BACKLOSS PROVISIONS WRITTEN BACKLOSS PROVISIONS WRITTEN BACKFor the period July 17, 2006 to July 16, 2007For the period July 17, 2006 to July 16, 2007For the period July 17, 2006 to July 16, 2007For the period July 17, 2006 to July 16, 2007For the period July 17, 2006 to July 16, 2007


Figures in NPR


45


----- 1 Recovery of write off Loan ---------- 2 Voluntary Retirement Scheme Expenses ---------- 3 Loan Write-Off (4.28) (a) ---------- 4 Other Expenses/Income ---------- -----

----- TOTALTOTALTOTALTOTALTOTAL -----


INCOME /EXPENSES FROM EXTRA-ORDINARY ACTIVITIESINCOME /EXPENSES FROM EXTRA-ORDINARY ACTIVITIESINCOME /EXPENSES FROM EXTRA-ORDINARY ACTIVITIESINCOME /EXPENSES FROM EXTRA-ORDINARY ACTIVITIESINCOME /EXPENSES FROM EXTRA-ORDINARY ACTIVITIESFor the period July 17, 2006 to July 16, 2007For the period July 17, 2006 to July 16, 2007For the period July 17, 2006 to July 16, 2007For the period July 17, 2006 to July 16, 2007For the period July 17, 2006 to July 16, 2007


Figures in NPR

S.N.S.N.S.N.S.N.S.N. TYPES OF LOANTYPES OF LOANTYPES OF LOANTYPES OF LOANTYPES OF LOAN WRITTEN OFFWRITTEN OFFWRITTEN OFFWRITTEN OFFWRITTEN OFF TYPE OFTYPE OFTYPE OFTYPE OFTYPE OF BASIS OFBASIS OFBASIS OFBASIS OFBASIS OF LOAN APPROVEDLOAN APPROVEDLOAN APPROVEDLOAN APPROVEDLOAN APPROVED INITIATIONINITIATIONINITIATIONINITIATIONINITIATION REMARKSREMARKSREMARKSREMARKSREMARKS

AMOUNTAMOUNTAMOUNTAMOUNTAMOUNT SECURITY SECURITY SECURITY SECURITY SECURITY VALUATION OFVALUATION OFVALUATION OFVALUATION OFVALUATION OF BY NAME/BY NAME/BY NAME/BY NAME/BY NAME/ MADEMADEMADEMADEMADE

COLLATERALCOLLATERALCOLLATERALCOLLATERALCOLLATERAL DESIGNATIONDESIGNATIONDESIGNATIONDESIGNATIONDESIGNATION FOR RECOVERYFOR RECOVERYFOR RECOVERYFOR RECOVERYFOR RECOVERY

1 Working Capital Loan ----- ----- ----- ----- ----- -----2 Project Loan ----- ----- ----- ----- ----- -----3 Fixed Capital Loan ----- ----- ----- ----- ----- -----4 Personal Loan ----- ----- ----- ----- ----- -----5 Other Loan ----- ----- ----- ----- ----- -----

TOTAL LOANTOTAL LOANTOTAL LOANTOTAL LOANTOTAL LOAN ----- ----- ----- ----- ----- -----

Schedule 4.28 (a)Schedule 4.28 (a)Schedule 4.28 (a)Schedule 4.28 (a)Schedule 4.28 (a)Sanima Bikas Bank LimitedSanima Bikas Bank LimitedSanima Bikas Bank LimitedSanima Bikas Bank LimitedSanima Bikas Bank Limited

STATEMENT OF LOANS WRITTEN-OFFSTATEMENT OF LOANS WRITTEN-OFFSTATEMENT OF LOANS WRITTEN-OFFSTATEMENT OF LOANS WRITTEN-OFFSTATEMENT OF LOANS WRITTEN-OFFFor the period July 17, 2006 to July 16, 2007For the period July 17, 2006 to July 16, 2007For the period July 17, 2006 to July 16, 2007For the period July 17, 2006 to July 16, 2007For the period July 17, 2006 to July 16, 2007


Figures in NPR


46

NAME OFNAME OFNAME OFNAME OFNAME OF TILL LAST YEAR’S BALANCETILL LAST YEAR’S BALANCETILL LAST YEAR’S BALANCETILL LAST YEAR’S BALANCETILL LAST YEAR’S BALANCE THIS YEAR RECOVERYTHIS YEAR RECOVERYTHIS YEAR RECOVERYTHIS YEAR RECOVERYTHIS YEAR RECOVERY THIS YEAR THIS YEAR THIS YEAR THIS YEAR THIS YEAR BALANCE AS OF ASHAD ENDBALANCE AS OF ASHAD ENDBALANCE AS OF ASHAD ENDBALANCE AS OF ASHAD ENDBALANCE AS OF ASHAD END

PROMOTER/DIRECTOR/CHIEF EXECUTIVEPROMOTER/DIRECTOR/CHIEF EXECUTIVEPROMOTER/DIRECTOR/CHIEF EXECUTIVEPROMOTER/DIRECTOR/CHIEF EXECUTIVEPROMOTER/DIRECTOR/CHIEF EXECUTIVE PRINCIPALPRINCIPALPRINCIPALPRINCIPALPRINCIPAL INTERESTINTERESTINTERESTINTERESTINTEREST PRINCIPALPRINCIPALPRINCIPALPRINCIPALPRINCIPAL INTERESTINTERESTINTERESTINTERESTINTEREST ADDITIONSADDITIONSADDITIONSADDITIONSADDITIONS PRINCIPALPRINCIPALPRINCIPALPRINCIPALPRINCIPAL INTERESTINTERESTINTERESTINTERESTINTEREST

(A) Directors - - - - - - -1 - - - - - - -2 - - - - - - -

(B) Chief Executive - - - - - - -1 - - - - - - -

- - - - - - -(C) Promoters - - - - - - -

1. Subarna Das Shrestha* 775,000 - 385,000 45,539 - 390,000 -2. Tuk Prasad Poudyal* 160,000 - 150,000 64,651 1,040,000 1,050,000 -

(D) Employees - - - - - - -1 - - - - - - -2 - - - - - - -

(E) Shareholders - - - - - - -1 - - - - - - -2 - - - - - - -Total 935,000 - 535,000 110,190 1,040,000 1,440,000 -


STATEMENT OF LOANS AND ADVANCESSTATEMENT OF LOANS AND ADVANCESSTATEMENT OF LOANS AND ADVANCESSTATEMENT OF LOANS AND ADVANCESSTATEMENT OF LOANS AND ADVANCESEXTENDED TO DIRECTORS/CHIEF EXECUTIVE/PROMOTER/EMPLOYEES AND SHAREHOLDERSEXTENDED TO DIRECTORS/CHIEF EXECUTIVE/PROMOTER/EMPLOYEES AND SHAREHOLDERSEXTENDED TO DIRECTORS/CHIEF EXECUTIVE/PROMOTER/EMPLOYEES AND SHAREHOLDERSEXTENDED TO DIRECTORS/CHIEF EXECUTIVE/PROMOTER/EMPLOYEES AND SHAREHOLDERSEXTENDED TO DIRECTORS/CHIEF EXECUTIVE/PROMOTER/EMPLOYEES AND SHAREHOLDERS


The Statement of amount, included under total amount of Bills Purchased and Discounted, Loans, Advances and Overdraft, provided to the Directors,

Chief Executive, Promoters, Employees, Shareholders and to the individual members of their undivided family or against the guarantee of such persons

or to the organizations or companies in which such individuals are managing agent, are as follows :

Figures in NPR

*Loan against Fixed Deposit Receipts of Sanima


47

PARTICULARS PREVIOUS YEAR RS. THIS YEAR RS.

A) Core Capital 228,186,020 342,535,939

1 Paid up Capital 224,000,000 320,000,000

2 Share Premium - -

3 Non-Redeemable Preference Share - -

4 General Reserve Fund 1,808,122 5,557,808

5 Cumulative Profit/(Loss) (up to Previous FY) 203,894 7,210,342

6 Current Year Profit/(Loss) as per shown in Balance Sheet 7,006,448 14,998,744

7 Capital Redemption Reserve - -

8 Capital Adjustment Reserve - -

9 Other Free Reserves - -

Less : - -

_ Goodwill - -

– Investment in excess of prescribed limit - -

– Fictitious Assets 4,832,444 5,230,955

– Investment in securities of companies with financial interest - -

B) Supplementary Capital 7,608,475 15,019,165

1 Loan Loss Provision on Pass Loans 7,586,327 15,019,165

2 Assets Revaluation Reserve - -

3 Hybrid Capital Instruments - -

4 Unsercured Subordinated Term Debt - -

5 Exchange Equalization Reserve 22,148 -

6 Additional Loan Loss Provision - -

7 Investment Adjustment Reserve - -

8 Provision for Loss on Investment - -

C) Total Capital Fund (A+B) 235,794,495 357,555,104

D) Minimum Capital Fund required to be maintained on the basis

of Risk Weighted Assets` Capital Fund (@ 11 Percent) 26.72 20.19

Core Capital (@ 5.50 Percent) 25.86 19.34

Capital Fund (Excess/Short) (@ 9.19 Percent)Core Capital (Excess/Short) (@ 13.84 Percent)


STATEMENT OF CAPITAL FUNDSTATEMENT OF CAPITAL FUNDSTATEMENT OF CAPITAL FUNDSTATEMENT OF CAPITAL FUNDSTATEMENT OF CAPITAL FUNDAs on July 16, 2007As on July 16, 2007As on July 16, 2007As on July 16, 2007As on July 16, 2007

Figures in NPR


48

PREVIOUS YEARPREVIOUS YEARPREVIOUS YEARPREVIOUS YEARPREVIOUS YEAR CURRENT YEARCURRENT YEARCURRENT YEARCURRENT YEARCURRENT YEAR

ON BALANCE SHEET ASSETSON BALANCE SHEET ASSETSON BALANCE SHEET ASSETSON BALANCE SHEET ASSETSON BALANCE SHEET ASSETS WEIGHTAGEWEIGHTAGEWEIGHTAGEWEIGHTAGEWEIGHTAGE AMOUNTAMOUNTAMOUNTAMOUNTAMOUNT RISKRISKRISKRISKRISK AMOUNTAMOUNTAMOUNTAMOUNTAMOUNT RISKRISKRISKRISKRISK

WEIGHTEDWEIGHTEDWEIGHTEDWEIGHTEDWEIGHTED WEIGHTEDWEIGHTEDWEIGHTEDWEIGHTEDWEIGHTED

ASSETSASSETSASSETSASSETSASSETS ASSETS ASSETS ASSETS ASSETS ASSETS

Cash Balance 0 16,424,625 - 25,406,955 -Gold (Tradable) 0 - - - -Balance with Nepal Rastra Bank 0 30,534,788 - 51,731,360 -Investment in Government Securities 0 - - - -Investment in NRB Bonds 0 - - - -Fully Secured Loan against own Fixed Deposit Receipt 0 18,095,000 - 361,172,500 -Fully Secured Loan against Government Securities 0 - - - -Balance with Domestic Banks and LicensedFinancial Institutions 20 1,925,451 385,090 2,824,811 564,962Fully Secured FDR Loan against Fixed Deposit Receipt ofother Licensed Banks and Financial Institutions 20 - - -Balance with Foreign Banks 20 - - 1,693,594 338,719Money at Call 20 176,960,471 35,392,094 431,433,574 86,286,715Loan against the guarantee of Internationally Rated Banks 20 - - - -Other Investments with Internationally Rated Banks 20 - - - -Investments in Shares, Debentures and Bonds 100 - - - -Other Investments 100 - - 466,271,200 466,271,200Loan, Advances and Bills Purchased/Discounted 100 740,537,665 740,537,665 1,140,744,024 1,140,744,024Fixed Assets 100 15,395,385 15,395,385 16,104,233 16,104,233All other Assets 100 18,444,339 18,444,339 24,368,390 24,368,390Total (A) 1,018,317,724 810,154,573 2,521,750,641 1,734,678,243Off Balance Sheet Items - - - -Bills Collection 0 - - - -Forward Foreign Exchange Contract 10 - - - -Letters of Credit with Maturity of less than 6months (Full Value) 20 - - - -Guarantees provided against Counter Guarantee ofInternationally Rated Foreign Banks 20 - - - -Letters of credit with maturity of more than 6 months (Full Value) 50 - - - -Bid Bond 50 800,000 400,000 10,369,000 5,184,500Performance Bond 50 17,708,200 8,854,100 18,748,900 9,374,450Advance Payment Guarantee 100 6,282,000 6,282,000 2,700,000 2,700,000Financial Guarantee 100 14,150,000 14,150,000 19,100,000 19,100,000Other Guarantee 100 - - - -Irrevocable Loan Commitment 100 42,562,267 42,562,267 - -Contingent Liability in respect of Income Tax 100 - - - -All other contingent Liabilities 100 - - - -Total (B) 81,502,467 72,248,367 50,917,900 36,358,950Total Risk Weighted Assets 1,099,820,191 882,402,940 2,572,668,541 1,771,037,193

Schedule 4.30Schedule 4.30Schedule 4.30Schedule 4.30Schedule 4.30 (A) (A) (A) (A) (A)Sanima Bikas Bank LimitedSanima Bikas Bank LimitedSanima Bikas Bank LimitedSanima Bikas Bank LimitedSanima Bikas Bank Limited

TABLE OF RISK WEIGHTED ASSETS STATEMENTTABLE OF RISK WEIGHTED ASSETS STATEMENTTABLE OF RISK WEIGHTED ASSETS STATEMENTTABLE OF RISK WEIGHTED ASSETS STATEMENTTABLE OF RISK WEIGHTED ASSETS STATEMENTAs on July 16, 2007As on July 16, 2007As on July 16, 2007As on July 16, 2007As on July 16, 2007

Figures in NPR



Figures in NPR



Figures in NPR



Figures in NPR


49

PARTICULARSPARTICULARSPARTICULARSPARTICULARSPARTICULARS INDICATORSINDICATORSINDICATORSINDICATORSINDICATORS FY 2061/62FY 2061/62FY 2061/62FY 2061/62FY 2061/62 FY 2062/63FY 2062/63FY 2062/63FY 2062/63FY 2062/63 FY 2063/64FY 2063/64FY 2063/64FY 2063/64FY 2063/64 FY ……FY ……FY ……FY ……FY …… FY ……FY ……FY ……FY ……FY ……

1 Percent of Net Profit/Gross Income Percent 1.57 13.27 14.35 - -2 Earning Per Share Rs. 0.11 3.92 5.86 - -3 Market Value Per Share Rs. - - 450 - -4 Price Earning Ratio Percent - - 76.81 - -5 Dividend (Including Bonus) on Share Capital Percent - - - - -6 Cash Dividend on Share Capital Percent - - - - -7 Interest Income/Loan & Advances Percent 3.62 6.81 6.73 - -8 Staff Expenses/Total Operating Expenses Percent 32.48 17.54 11.97 - -9 Interest Expenses / Total Deposit and Borrowing Percent 1.37 3.37 3.11 - -

10 Exchange Gain/Total Income Percent - 0.12 - - -11 Staff Bonus/Total Staff Expenses Percent 0.65 14.52 23.74 - -12 Net Profit/Loan and Advances Percent 0.10 1.16 1.25 - -13 Net Profit/Total Assets Percent 0.06 0.87 0.75 - -14 Total Credit/Deposit Percent 105.13 101.15 82.40 - -15 Total Operating Expenses/Total Assets Percent 2.91 4.72 3.75 - -16 Adequacy of Capital Fund on Risk Weighted Assets - -

a) Core Capital Percent 63.53 25.86 19.34 - -b) Supplementary Captial Percent 0.71 0.86 0.85 - -c) Total Capital Fund Percent 64.24 26.72 20.19 - -

17 Liquidity (CRR) Percent 78.42 29.14 23.90 - -18 Non-Performing Loan/Total Credit Percent 0 0 0 - -19 Weighted Average Interest Rate Spread Percent 4.79 4.59 3.87 - -20 Book Net-Worth Rs. 224,254,867 233,040,612 347,766,894 - -21 Total Shares Nos. 2,240,000 2,240,000 3,200,000 - -22 Total Staff Nos. 28 31 39 - -23 Others - - - - - -


PRINCIPAL INDICATORSPRINCIPAL INDICATORSPRINCIPAL INDICATORSPRINCIPAL INDICATORSPRINCIPAL INDICATORS(At least for previous 5 years)(At least for previous 5 years)(At least for previous 5 years)(At least for previous 5 years)(At least for previous 5 years)

Figures in NPR


50

For the Period of Shrawan 01, 2063 to Ashad 32, 2064(17th July 2006 to 16th July 2007.)

1. Basis of Preparation1. Basis of Preparation1. Basis of Preparation1. Basis of Preparation1. Basis of PreparationThe Financial statements have been prepared inaccordance with generally accepted accounting principles,Nepal Accounting Standards, Nepal Rastra Bank Directivesand Banks & Financial Institutions Act 2063. Thesignificant accounting policies are summarized below:

2. Summary of Significant Accounting2. Summary of Significant Accounting2. Summary of Significant Accounting2. Summary of Significant Accounting2. Summary of Significant AccountingPoliciesPoliciesPoliciesPoliciesPolicies

2.1 Fixed Assets & Depreciation2.1 Fixed Assets & Depreciation2.1 Fixed Assets & Depreciation2.1 Fixed Assets & Depreciation2.1 Fixed Assets & Depreciation

(i) Fixed Assets have been accounted on historical costbasis.

(ii) Fixed Assets are depreciated by diminishing balancemethod at the rates prescribed by Income Tax Act,2058.

2.2 Provision for Income Tax2.2 Provision for Income Tax2.2 Provision for Income Tax2.2 Provision for Income Tax2.2 Provision for Income TaxProvision for Income Tax has been made as per IncomeTax Act, 2058

2.3 Investment Policy2.3 Investment Policy2.3 Investment Policy2.3 Investment Policy2.3 Investment PolicyThe Bank has not made any investment in shares anddebentures.

2.4 Foreign Currency Transactions2.4 Foreign Currency Transactions2.4 Foreign Currency Transactions2.4 Foreign Currency Transactions2.4 Foreign Currency Transactions(i) Foreign currency assets and liabilities have been

translated into Nepalese Rupees at Mid-rates, i.e.,the average of buying and selling rates as of 16thJuly 2007.

(ii) Incomes realized from the difference betweenbuying & selling rates of Foreign Exchange isaccounted and shown as "Trading Gain on ForeignCurrency".

(iii) Gain/Loss arising due to change in exchange rates offoreign currencies on assets and liabilities as at the

year end are accounted for and shown as"Revaluation Loss". 25% of revaluation gain istransferred to Exchange Fluctuation Reserve throughProfit and Loss Appropriation Account as per NepalRastra Bank Directives.

2.5 Non-Banking Assets2.5 Non-Banking Assets2.5 Non-Banking Assets2.5 Non-Banking Assets2.5 Non-Banking Assets The bank has no Non Banking Assets till the end of Ashad2064.

2.6 Non-Capitalized Assets2.6 Non-Capitalized Assets2.6 Non-Capitalized Assets2.6 Non-Capitalized Assets2.6 Non-Capitalized AssetsAssets with a unit value of NRs. 2,000/- or less areexpended in the year of purchase.

2.7 Income/Expenses Recognition2.7 Income/Expenses Recognition2.7 Income/Expenses Recognition2.7 Income/Expenses Recognition2.7 Income/Expenses Recognition(1) Interest Calculation System

Interests on Loans & Deposits are calculated on thebasis of 365 days a year.

(2 Interest ExpensesInterest expenses on Deposits and Borrowings areaccounted for on accrual basis.

(3) Other ExpensesOther expenses are recognized on accrual basis.

(4) Interest Income(i) Interest incomes on Loans & Advances arerecognized on cash basis as per the Nepal Rastra BankDirective, although this practice is inconsistent withNAS 7 (Revenue Accounting) which prescribes that therevenue should be recognized on accrual basis.

(ii) Interest incomes on deposits with other Banks andFinancial Institutions are recognized on accrual basis.

(5) Commissions & Service ChargesCommission & Service charges up to NRs 50,000.00have been recognized on cash basis.

Schedule 4.32Schedule 4.32Schedule 4.32Schedule 4.32Schedule 4.32

Principal Accounting PoliciesPrincipal Accounting PoliciesPrincipal Accounting PoliciesPrincipal Accounting PoliciesPrincipal Accounting Policies


51

2.8 Provision for Loan Loss2.8 Provision for Loan Loss2.8 Provision for Loan Loss2.8 Provision for Loan Loss2.8 Provision for Loan LossThe provision for possible Loan Loss has been made as perthe directive of Nepal Rastra Bank.

2.9. Other Policies2.9. Other Policies2.9. Other Policies2.9. Other Policies2.9. Other Policies(i) Pre-operating & Deferred Revenue Expenditures

Pre-operating and Deferred Revenue Expenditures areamortized over 5 years.

(ii) Leasehold improvements expensesLeasehold improvement expenses are amortized over thelease period.

(iii) Share Issue ExpensesPublic Share issue expenses are amortized over 5 year

(iv) Provision for Staff BonusStaff bonus has been calculated and provided at 10% ofnet profit before tax.

(v) Stationeries & Other StocksStationeries & other stocks are valued as per FIFOmethod.

(vi) General Reserve Fund20% of current year's Net Profit is transferred to theGeneral Reserve Fund.


52

Notes to AccountsNotes to AccountsNotes to AccountsNotes to AccountsNotes to Accounts1. Summary of loans & advances,1. Summary of loans & advances,1. Summary of loans & advances,1. Summary of loans & advances,1. Summary of loans & advances,disbursed, recovered and principal anddisbursed, recovered and principal anddisbursed, recovered and principal anddisbursed, recovered and principal anddisbursed, recovered and principal andinterest written-off.interest written-off.interest written-off.interest written-off.interest written-off.

PARTICULARSPARTICULARSPARTICULARSPARTICULARSPARTICULARS AMOUNTAMOUNTAMOUNTAMOUNTAMOUNT

Opening Balance 758,632,665Loans Disbursed 1,074,725,886Loans Recovered 331,442,027Principal Written off -Interest Written off -Closing Outstanding 1,501,916,524

Figures in NPR

2. Summary of Change in Deposits Liabilities2. Summary of Change in Deposits Liabilities2. Summary of Change in Deposits Liabilities2. Summary of Change in Deposits Liabilities2. Summary of Change in Deposits Liabilities

PARTICULARSPARTICULARSPARTICULARSPARTICULARSPARTICULARS CURRENT YEARCURRENT YEARCURRENT YEARCURRENT YEARCURRENT YEAR PREVIOUS YEARPREVIOUS YEARPREVIOUS YEARPREVIOUS YEARPREVIOUS YEAR CHANGECHANGECHANGECHANGECHANGE

Current Deposit 46,338,850 19,073,673 27,265,177Margin Deposit 1,173,920 3,525,550 (2,351,630)Saving Deposit 413,686,068 223,662,116 190,023,952Call Deposit 211,821,824 269,521,275 (57,699,451)Fixed Deposit 1,149,684,393 234,213,750 915,470,643Total 1,822,705,055 749,996,364 1,072,708,691

Figures in NPR

3. Weighted-Average Interest Spread3. Weighted-Average Interest Spread3. Weighted-Average Interest Spread3. Weighted-Average Interest Spread3. Weighted-Average Interest Spread

PARTICULARSPARTICULARSPARTICULARSPARTICULARSPARTICULARS RATE (%)RATE (%)RATE (%)RATE (%)RATE (%)

Average Rate of Return on Loans & Advances 8.76Average Rate on Deposits 4.89Net Spread 3.87

4. Details of pre-operating expenses,. Details of pre-operating expenses,. Details of pre-operating expenses,. Details of pre-operating expenses,. Details of pre-operating expenses,computer software and deferred revenuecomputer software and deferred revenuecomputer software and deferred revenuecomputer software and deferred revenuecomputer software and deferred revenueexpenses:expenses:expenses:expenses:expenses:

SR.NOSR.NOSR.NOSR.NOSR.NO PARTICULARSPARTICULARSPARTICULARSPARTICULARSPARTICULARS CAPITALIZEDCAPITALIZEDCAPITALIZEDCAPITALIZEDCAPITALIZED AMORTIZEDAMORTIZEDAMORTIZEDAMORTIZEDAMORTIZED BALANCEBALANCEBALANCEBALANCEBALANCE

AMOUNTAMOUNTAMOUNTAMOUNTAMOUNT DURING THE YEARDURING THE YEARDURING THE YEARDURING THE YEARDURING THE YEAR AMOUNTAMOUNTAMOUNTAMOUNTAMOUNT

1. Pre-operating Expenses 4,149,993 1,214,632 2,935,3612. Leasehold Improvement 6,359,038 829,825 5,529,2133. Computer Software 728,576 173,990 554,5864. Deferred Revenue Expenses 123,375 36,110 87,2655. Public Share Issue Expenses 1,802,248 240,300 156,1948

Total 13,163,230 13,163,230 2,494,857 10,668,373

Figures in NPR

Schedule 4.33Schedule 4.33Schedule 4.33Schedule 4.33Schedule 4.33


53

* Including Call Deposit

5. Funded and non-funded facilities and sector wise loans are within the limits5. Funded and non-funded facilities and sector wise loans are within the limits5. Funded and non-funded facilities and sector wise loans are within the limits5. Funded and non-funded facilities and sector wise loans are within the limits5. Funded and non-funded facilities and sector wise loans are within the limitsprescribed by NRB Directives. Summary of concentration of exposures.prescribed by NRB Directives. Summary of concentration of exposures.prescribed by NRB Directives. Summary of concentration of exposures.prescribed by NRB Directives. Summary of concentration of exposures.prescribed by NRB Directives. Summary of concentration of exposures.

PARTICULARSPARTICULARSPARTICULARSPARTICULARSPARTICULARS LOANS &LOANS &LOANS &LOANS &LOANS & DEPOSIT &DEPOSIT &DEPOSIT &DEPOSIT &DEPOSIT & CONTINGENTCONTINGENTCONTINGENTCONTINGENTCONTINGENT

ADVANCESADVANCESADVANCESADVANCESADVANCES BORROWINGS BORROWINGS BORROWINGS BORROWINGS BORROWINGS LIABILITIESLIABILITIESLIABILITIESLIABILITIESLIABILITIES

Total amount as on 16.7.2007 (2064.3.32) 1,501,916,524 2,147,225,055 50,917,900Highest Exposure to Single Party 156,500,000 292,020,000 6,050,000Highest Exposures (%) to Single party 10.42% 13.60% 11.88%

Figures in NPR

Note: 1.The amount of highest Exposure on Loan and Advance to single party is Loan against Own Fixed Deposit Receipt2. The amount of highest Exposure on Deposit & Borrowings to single party is Inter bank borrowing.

6. Classification of Assets and Liabilities based on maturity.6. Classification of Assets and Liabilities based on maturity.6. Classification of Assets and Liabilities based on maturity.6. Classification of Assets and Liabilities based on maturity.6. Classification of Assets and Liabilities based on maturity.

PARTICULARSPARTICULARSPARTICULARSPARTICULARSPARTICULARS 1-901-901-901-901-90 91-18091-18091-18091-18091-180 181-270181-270181-270181-270181-270 271-365271-365271-365271-365271-365 OVEROVEROVEROVEROVER TOTALTOTALTOTALTOTALTOTAL

DAYSDAYSDAYSDAYSDAYS DAYSDAYSDAYSDAYSDAYS DAYSDAYSDAYSDAYSDAYS DAYSDAYSDAYSDAYSDAYS 1 YEAR1 YEAR1 YEAR1 YEAR1 YEAR

(A) AssetsCash Balance 254 - - - - 254Balance with Banks & Financial Institutions 4,877 - - - - 4,877Investment in Foreign Banks - - - - - -Nepal Government Securities - - - - - -Nepal Rastra Bank Bonds - - - - - -Inter Bank/Financial Institution Lending 3,230 - - 1,433 - 4,663Loans & Advances 2,735 2,385 1,729 2,047 6,123 15,019Total Assets 11,096 2,385 1,729 3,480 6,123 24,813(B) LiabilitiesBorrowings 1,882 - - 1,363 - 3,245Current Deposits* 2,530 - - - 52 2,582Savings Deposits 3721 - - - 416 4,137Fixed Deposits 1,924 876 465 3,744 4,488 11,497Debentures - - - - - -Total Liabilities 10,057 876 465 5,107 4,956 21,461Net Financial Assets 1,039 1,509 1,264 -1,627 1,167 3,352Cumulative Financial Assets 1,039 2,548 3,812 2,185 3,352 -

Figures in (00'000 NPR)


54

7. The total inter bank borrowing of NPR 324,520,000 isagainst the collateral of own assets (Placement) of theBank.

8. Non Banking Assets is nil.

9.There are no advances for shares, no calls-in-arrears andno shares have been forfeited.

11. In view of the Bank providing housing, vehicle andpersonal loan facilities to its employees and as per thepractice followed by other bank and financial institutions,provision for employees' housing fund as required underthe labor act, 2048 has not been provided for.

12. During the year exchange fluctuation fund of Rs.22,148 has been adjusted with the foreign exchange loss.

13.Provision for Staff Gratuity Fund shall be made afterfive years as per the employee service regulation of theBank.

14. Figures are rounded off to the nearest rupee. Wherenecessary, amounts shown for the previous year havebeen regrouped/rearranged to facilitate comparison.

PARTICULARSPARTICULARSPARTICULARSPARTICULARSPARTICULARS AMORTIZEDAMORTIZEDAMORTIZEDAMORTIZEDAMORTIZED AMORTIZEDAMORTIZEDAMORTIZEDAMORTIZEDAMORTIZED TOTALTOTALTOTALTOTALTOTAL

UPTO LASTUPTO LASTUPTO LASTUPTO LASTUPTO LAST DURING THE DURING THE DURING THE DURING THE DURING THE AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT

YEARYEARYEARYEARYEAR YEARYEARYEARYEARYEAR

Amortization of leaseholdimprovements 1,105,849 829,825 1,935,674

10. Details of amortization Leasehold10. Details of amortization Leasehold10. Details of amortization Leasehold10. Details of amortization Leasehold10. Details of amortization Leaseholdimprovementsimprovementsimprovementsimprovementsimprovements

Figures in NPR

Sanima Bikas

Bank Limited

G.P.O. Box: 20394

Nagpokhari, Kathmandu

Branch Office: Damak, Jhapa

Tel: +977 1 4428979-80

Fax: +977 1 4428969

Email: [email protected]

Url: www.sanimabank.com

PHOTOGRAPHY, DESIGNED AND PROCESSED BY:

POWER COMMUNICATION

The mission of Sanima is to

provide banking and

financial solutions in a

simplified way with

customer focus while

adding value to

stakeholders’ interests.

w w w . s a n i m a b a n k . c o m


GrowingSteady


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