Sanima Bikas Bank Limited /2006. nd Annual Report. Growth

Transcription

1 2 nd Annual Report Growth S E E K I N G

2 The mission of Sanima is to provide banking and financial solutions in a simplified way with customer focus while adding value to stakeholders interests.

3 Growth S E E K I N G Contents About us 2 Products & Services 4 Board of Directors 8 Executive Chairman s Statement 10 Management Team 12 Director s Report 13 Financial Highlights 22 Auditor s Report 25 Balance Sheet 26 Profit & Loss Account 27 Profit & Loss Appropriation Account 28 Statement of Changes in Equity 29 Cash Flow Statement 29 Schedules 30

4 About Us 2

5 (Sanima) commenced its operation from 6 th December, Sanima is promoted by prominent Non Resident Nepalese (NRN) businessmen having their business establishments spread over in many countries and Nepal. The promoters hold 70% shares of Sanima while the remaining 30% is held by the general public including staffs. Sanima is one of the banks with largest number of public shareholders that count approximately 32,000. The management of Sanima is run by highly experienced professionals and experts who believe in the corporate governance and its standard principle and practices. Sanima has been established with an aim to maximize and explore its resources for the benefit of its stakeholders as well as to help develop the economy of the country. Sanima s organizational structure is designed to support its business goals with flexible approach in customer services and diversification of banking products. Sanima s Board of Directors and the management are committed to provide financial services to its patrons through efficient and cost effective service delivery through its consumer, business banking and treasury departments. The bank has been in the forefront of the country in mobilizing the resources towards the development in infrastructure projects like hydropower projects, educational institutions, hospitals etc. Sanima believes and is prepared to offer new and value added services to its valued customers with a commitment to provide quality services and congenial atmosphere. We have appointed M/s. T.R. Upadhyaya & Co. Chartered Accountants affiliated with internationally renowned firm, KPMG as the Internal Auditor of Sanima. Our Statutory Auditor is CSC & Co., Chartered Accountants associated with internationally renowned firm, Pricewaterhouse Coopers. 3

6 Products Deposits Sanima has been offering different types of deposit schemes including three types of Saving Deposits, Current Deposits and Fixed Deposits, both in local and foreign currencies. Subhidha Savings Deposit is one of the most attractive deposit products in the market that offers an interest rate of 5% per annum on daily balance basis, providing unlimited withdrawal and deposit facilities. Foreign Currency Deposits also includes saving, fixed and current deposits. Loans Sanima has been providing basically two types of loans, they are, business loans and consumer loans. In terms of business loans, Sanima has financed long term projects and has also provided short term financing including overdraft facility to manage working capital needs of businesses. In term of consumer loans, Sanima has been providing hassle free loans. The consumer loans that Sanima has been providing are Home Loan, Auto Loan, Education Loan, Loan against shares, Personal Loan etc. Sanima also provides different kinds of Bank Guarantee facilities to its customers. Sanima has been contemplating to come out with new and innovative loan products for Small and Medium Enterprises and micro financing in the near future. Sanima has financed three hydropower projects with one being financed by the consortium with Sanima as the Lead Bank. 4

7 & Services Market Maker Sanima is licensed to operate as a market maker for the issuance and purchase of government bonds. This approval entitles the bank to buy and sell these bonds through the primary and secondary markets. Treasury & Foreign Currency Transactions Sanima has been offering full range of foreign currency transactions that includes sale and purchase of foreign currencies and Travelers Cheques, inward/outward remittances, SWIFT / Telegraphic Transfers, Cross currency transactions and withdrawal and deposits of foreign currencies. Sanima s Treasury Department looks after the foreign exchange management as well as the entire fund management of the bank. 5

8 Products Safe Deposit Locker Sanima has been offering safe deposit locker facility with different sizes of lockers at a reasonable price. Other services Sanima provides money transfer facility in local currency within Nepal. Sanima has been providing services beyond the normal banking hours. Sanima is developing new products and services like ATM card, SMS and Internet Banking to address the requirements of its valued and prospective customers. 6

9 & Services NRN Wing Sanima itself being a bank promoted by renowned NRN businessmen offers special services to its NRN customers. A separate NRN wing has been set up to provide fast and convenient services to cater the needs of its existing and potential NRN customers. 7

10 Board of MR. ARUN KUMAR OJHA Director MR.BADRI PRASAD OJHA Executive Chairman M.SC. (Stat.), BL Ex- Director General of Federation of Nepalese Chamber of Commerce & Industry (FNCCI) 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 NIRAULA Director 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. 8

11 Directors DR. NIRAJ GOVINDA SHRESTHA Director MR. DILIP SHRESTHA Director Ph.D. ( Technical Science) M. E. (Bridge & Tunnel) Promoter, Director & Chairman of many private sector firms like, hydropower, health & information. Chairman- Mailung Khola Hydropower Co. Pvt. Ltd. Director- Himalaya Bamboo & Wood Pvt. Ltd. MR. PANKAJ ADHIKARI Director MR. SAMBHA LAMA Director S.S.E. (Commerce) Representative from General public Director-Bhirkuti Trading Pvt. Ltd. Promoter-Mila Land & Development Pvt. Ltd. M.SC. ( Civil Eng.) Promoter, Director & Consultant of many private sector firms like hydropower & information. Promoter-Photobeg color Lab, Advisor- Sanima Hydropower Pvt. Ltd. B.Com, Representative from public shareholders 9

12 Executive As the chairman of, I whole-heartedly welcome you all at the Second Annual General Meeting of the bank. I feel that the importance of this meeting has been enhanced by the presence of public shareholders who are participating in such a meeting of Sanima for the first time. It gives me immense pleasure to mention here that Sanima has been able to achieve successful growth despite of the fact that it has come into operation only for two years. The subscription of shares by more than 40 times in its recent Initial Public Offering reflects the general public s confidence in Sanima. Sanima has maintained quantitative as well as qualitative growth. I want to make you known that there are no non-performing loans of Sanima so far. I would like to draw your kind attention to the fact that Sanima always considers its human resources as one of its most important assets. Sanima is committed to create a great pool of human resources and managing them in a systematic way. Sanima has the largest paid up capital among the national level private sector development banks after the allotment of its public issue. In the Fiscal Year, Sanima facilitated its 10

13 Chairman s Statement customers with the arrangement of Safe Deposit Locker facility. It has also been providing Remittance Services in convertible foreign currencies, Telegraphic Transfer and Traveler s Cheque facilities to its customers. In the days ahead, we have plans to start Letter of Credit transactions after obtaining the required permission from the concerned authority. The internal audit of Sanima is being undertaken by M/s T.R. Upadhaya & Co., affiliated with internationally renowned organization, KPMG. The statutory auditor of Sanima is M/s CSC & Co. which is affiliated with another internationally reputed firm, Pricewaterhouse Coopers. An Audit Committee formed under the Board of Directors has been active to implement the recommendations and instructions provided by the internal as well as the statutory auditors to ensure full compliance in day to day banking transactions. At the end, I express my gratitude to all the shareholders for their kind presence in this Annual General Meeting. I am also thankful to our valued customers, auditors, promoters, Directors of the Board, shareholders, Ministry of Finance, Nepal Rastra Bank, Office of the Company Registrar, Security Board of Nepal and Nepal Stock Exchange Limited. I would also like to thank all the well wishers who are directly or indirectly associated with Sanima and to the general public who subscribed to Sanima s shares in its Initial Public Offering. I want to thank the management and the staffs of Sanima for their valuable contribution for the growth of Sanima. I believe that the management of Sanima will be able to take Sanima to greater heights in the days ahead in the context of improved situation of peace and security in the country I once again welcome you all at this august gathering. Thank you. Badri Prasad Ojha Executive Chairman 11

14 Management Team Badri Prasad Ojha Executive Chairman Kumar lamsal Dy. General Manager Tej Bahadur Chand Asst. General Manager Zanak Bahadur Rawal Head-Accounts Administration & Treasury Pawan Kumar Acharya Head-Credit Control & HR Bharat Bahadur Thapa Head-Shares Department & Company Secretary Santosh Koirala Head-Consumer Lending & Operations Sunil Khatiwada Head- Information Technology 12

15 Directors Report Respected Shareholders, We are pleased to greet the shareholders present in this Second Annual General Meeting of. The following Balance Sheet, Profit & Loss Account and the Cash Flow Statement for the Fiscal Year of this bank and the Report of the Board of Directors have been presented to the meeting for necessary discussion and approval. Financial Highlights In the fiscal year 2005/06, Sanima has been able to attain growth by 46 times and 33 times in Operating Profit of NPR 13.4 million after loan loss provision and Net Profit of NPR 8.8 million respectively as compared to the last fiscal year. Sanima started transactions in convertible foreign currencies during the review period. According to the Economic Survey published by the Ministry of Finance of the Government of Nepal, the growth of the deposits in the development banks in the last Fiscal Year was 25.20% while the loans and advances recorded a growth of 1%. Similarly, the growth of deposits & lending in the overall Banking Industry was recorded at 7.6% and 8.1% respectively. On the basis of above facts, the business achievements of Sanima can be considered encouraging. The summary of financial position of the bank for the last two Fiscal Years is as follows: 13

16 SR. NO. PARTICULARS F/Y 2004/05* F/Y 2005/06 % INCREASE 1 Total Revenue 16,197 66, Total Expenses 13,492 47, Deposits 238, , Loans & Advances (Net) 248, , Operating Profit ,361 4,621 6 Net Profit 255 8,786 3,345 7 Capital & Reserves 224, , Non-Performing Loan 0% 0% - 9 Non-Fundeded Facilities - 38,940 * Seven month operation period in the Fiscal Year 2004/05 ' Impact of National & International Condition in the performance of Sanima Adverse effects were felt on all the aspects of economic activities due to internal conflict in the country. The scenario in the foreign trade was not so encouraging whereas the balance of payment remained favorable. The growth in the flow of remittances from abroad has increased the purchasing power of the middle class. Consumer culture has been developing gradually and the retail market segment is becoming a choice of priority. The mounted pressure on reducing the interest rate of loans, lack of new investment opportunities, entry of new financial institutions in the market, the decrease in GDP etc have made the competition amongst the financial institutions very tough. As a result of this, the banking business has been facing cut throat competitition. In this context, the management has faced challenges to increase the profitability of Sanima. However, with the symptoms of peace and improved security in the country, it is expected that the economic and development activities will take a fresh start. 14

17 Performance and Future Programs for the current fiscal year The future plan of Sanima includes opening new branches with the approval of Nepal Rastra Bank. Sanima has signed agreement as a participating member of VISA Debit card for the operation of ATM card facility. Figures in 000 (NPR) SR. NO. PARTICULARS AS OF MARG END 2063 (15TH DECEMBER 2006) 1 Deposits & Borrowings 1,451,261 2 Loans & Advances 1,078,207 3 Net Interest Income 21,211 4 Other Income 1,216 5 Operating Expenses 10,224 6 Operating Profit 12,203 Industrial & Business Relation The management of Sanima has been entrusted to professional bankers. Sanima is committed to create an environment to motivate its employees. Sanima has been improving its service quality by focusing its attention towards the needs of its customers. As a result, the bond of Sanima with its customers is getting stronger day by day. The bank has been catering its services to various customer groups including small entrepreneurs, corporate houses, government and non-governmental organizations and the general public at large. 15

18 Changes in the Board of Directors Dr. Gopal Prasad Shrestha, Dr. Subarna Das Shrestha, Dr. Birendra Prasad Mahato, and Mr. Tuk Prasad Poudel, the former members of the Board of Directors of Sanima had resigned due to their busy engagement with other responsibilities. I express my gratefulness to them for their inspiring contribution to the growth of Sanima during their tenure as members of the Board of Directors. Mr. Dilip Shrestha, Dr. Niraj Govinda Shrestha and Mr. Tek Raj Niraula have been appointed as the new Directors on behalf of the promoters. Principal Factors affecting the business Sanima has already started remittance facilities in foreign currencies with due approval from Nepal Rastra Bank. Besides, we have started deposit schemes in convertible foreign currencies. This has opened up new avenues of business for Sanima. With the provision of opening branches of foreign banks in Nepal from 2010, the banking business is likely to be more competitive. Besides, fluctuations in global economy, changes taking place in interest and exchange rates and the on going development of technology have had major impact in the banking industry. 16

19 Shareholding of members of Board of Directors from promoters: SR. NO. NAME OF PROMOTERS NO. OF SHARES 1 Mr. Badri Prasad Ojha - Chairman 4,000 2 Mr. Tek Raj Niraula - Director 448,000 3 Mr. Arun Kumar Ojha - Director 448,000 4 Dr. Niraj Govinda Shrestha - Director 200,000 5 Mr. Dilip Shrestha - Director 52,000 Internal Control System and Audit Committee Sanima s policies focus to strengthen the organization s internal control system by keeping an eye on the risks involved in credit sector and operational activities of the banking business. In this context, necessary rules, regulations pertaining to all the areas of banking have been formulated and implemented. Audit Committee comprises the following Directors: Mr. Dilip Shrestha- Co-ordinator Mr. Arun Kumar Ojha- Member Officials of Sanima are invited in the meeting of the committee as and when required. In each meeting, the participants (excluding staff) are provided with the meeting allowances as per the rate fixed for the member of Board of Directors. A total of NPR 16, has been spent as meeting allowances of the Audit Committee. The Audit Committee, after making discussion on the audit report submitted by the auditors, presents it to the Board of Directors. The Audit Committee has been making various recommendations whenever found necessary. 17

20 Loans & Advances Despite the growth of loans & advances by 202% as compared to the last year making the total loan portfolio of NPR 751 million, there have been no non-performing loans till the review period. Sanima has not only provided loans in the consumer sector but also it has provided loans to the sectors that help develop the infrastructure of the nation. As for example, Sanima has financed three hydro power projects so far. Capital & Reserves The capital adequacy ratio of Sanima is 25.88% on primary capital base and 26.74% on total capital base which exceeds the required criteria of 5.50% and 11.00% respectively laid down by Nepal Rastra Bank. 18

21 19

22 Human Resources The total number of staffs in Sanima has increased to 31 from the figure of 28 of last year. The achievement of Sanima during the period of review is remarkable in comparison to its increased number of manpower. In the future, Sanima will provide more internal and external training opportunities to its staffs and will develop necessary skilled manpower. Technology Sanima has been carrying out all of its banking transactions by tested banking software used in Nepal. Besides, internal software have also been developed and utilized to help carry its daily activities efficiently. In house training 20

23 Auditor Mr. Madan Krishna Sharma, fellow Chartered Accontant of M/s. CSC & Co., a firm associated with internationally renowned firm, Pricewaterhouse Coopers is the Statutory Auditor of Sanima. They are eligible for reappointment. The Audit Committee and the Board of Directors have recommended for their reappointment. At last, we would like to assure the shareholders that the Board of Directors and the management of Sanima are committed to devote themselves to meet the expectations of its shareholders. We express our sincere thanks to all the shareholders and customers for showing their confidence in Sanima. We also want to thank the media sector, Government of Nepal, Nepal Rastra Bank, staffs of Sanima, the advisors of Sanima and all the well wishers for their continuous support for the success of Sanima. We seek your continued co-operation in the future too. Thank you. Sanima staff in a business meeting Pheme Khola Hydropower project financed by consortium of banks in the lead of Sanima 21

24 Financial Highlights 22

25 23

26 Events on 2nd Annual General Meeting 24

27 CSC & Co an associated firm of PricewaterhouseCoopers CSC & Co Chartered Accountants 1955, Tanka Prasad Ghumti Sadak Babar Mahal PO Box: 4861, Kathmandu, Nepal Tel: , Fax: Auditors Report To the Shareholders of We have audited the attached Balance Sheet of Sanima Bikas Bank Ltd. as of Ashad 32, 2063 (16 July 2006) and the Profit and Loss Account and Cash flow Statement for the year then ended. These financial statements are the responsibility of the Sanima s management. Our responsibility 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 standards generally accepted in Nepal. Those standards require that we plan - and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. We have obtained satisfactory information and explanations asked for, which to the best of our knowledge and belief were necessary for the purpose of our audit; the Balance Sheet, the Profit and Loss Account and the Cash flow Statement have been prepared in accordance with the methods and format specified by Nepal Rastra Bank, and confirm to the books of accounts of the Sanima; and the accounts and records of the Sanima are properly maintained in accordance with the prevailing laws. To the best of our information and according to the explanations given to us in the course of our audit, we observed that the actions were taken for the protection of the interest of depositors and investors; the capital fund and risk bearing fund were adequate; the business of the Bittiya Sanstha was conducted satisfactorily and the Sanima s transactions were found to be within the scope of its authority. We did not come across cases where the board of directors or any director or any office bearer of the Sanima has acted contrary to the provisions of law or caused loss or damage to the Sanima or committed any misappropriation or violated directives 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 Sanima as of 32 Ashad, 2063 (16 July 2006), and of the results of its operations and its cash flows for the year then ended in accordance with the accounting practices generally accepted in Nepal and those statements are in conformity with the directives from Nepal Rastra Bank, Bank and Financial Institution Ordiance, 2062 and Company Act. Date: 29 November 2006 Place: Kathmandu Madan Krishna Sharma Partner CSC & Co. Chartered Accountants

28 BALANCE SHEET as on Ashad 32, 2063 (July 16, 2006) CAPITAL & LIABILITIES ANNEXURE THIS YEAR PREVIOUS YEAR 1 Share Capital ,000, ,000,000 2 Reserve and Funds 4.2 9,040, ,867 3 Debentures and Bonds Borrowings ,000,000-5 Deposit Accounts ,996, ,355,255 6 Bills Payables Proposed and Payable Dividend Income Tax Liabilities Other Liabilities 4.7 2,694, ,531 TOTAL LIABILITIES 1,010,731, ,165,653 ASSETS SCHEDULE THIS YEAR PREVIOUS YEAR 1 Cash Balance ,424,625 6,856,265 2 Balance with NRB ,534,788 8,023,954 3 Balance with Banks/Financial Institution ,925,451 2,053,440 4 Money at Call and Short Notice ,960, ,986,771 5 Investment Loan Advances and Bills Purchase ,046, ,166,784 7 Fixed Assets ,395,385 15,165,791 8 Non-Banking Assets Other Assets ,444,339 12,912,648 TOTAL ASSETS 1,010,731, ,165,653 Contingent Liabilities Schedule 4.17 Director s Declaration Schedule 4.29 Statement of Capital Fund Schedule 4.30 Statement of Risk Weighted Assets Schedule 4.30 (A) Principle Indicators Schedule 4.31 Principle Accounting Policies Schedule 4.32 Notes to Accounts Schedule 4.33 Schedules 4.1 to 4.17, 4.32 & 4.33 form integral parts of the Balance Sheet. As per our report of even date Zanak Bahadur Rawal Head-Accounts & Administration Kumar Lamsal Dy. General Manager Badri Prasad Ojha Executive Chairman Madan Krishna Sharma Partner CSC & Co., Chartered Accountant Arun Kumar Ojha Director Dilip Shrestha Director Tek Raj Niraula Director Niraj Govinda Shrestha Director Date : ( ) Place : Kathmandu 26

29 PROFIT AND LOSS ACCOUNT For the period July 16, 2005 to July 16, 2006 (Shrawan 1, 2062 to Ashad 32, 2063) PARTICULARS SCHEDULES THIS YEAR PREVIOUS YEAR 1 Interest Income ,828,439 12,091,913 2 Interest Expenses ,152,922 3,260,862 Net Interest Income 34,675,517 8,831,051 3 Commission and Discount ,141 78,748 4 Other Operating Incomes ,775,916 4,026,033 5 Exchange Fluctuation Income ,871 - Total Operating Income 40,067,445 12,935,832 6 Employees Expenses ,364,845 4,381,610 7 Other Overhead Expenses ,177,072 5,849,630 8 Exchange Fluctuation Loss Operating Profit Before Provision for Possible Loss 18,525,528 2,704,592 9 Provision for Possible Losses ,164,920 2,421,407 Operating Profit 13,360, , Non-operating Income/Loss Loan Loss Provision Written-Back Profit from Regular Operations 13,360, , Profit/Loss from extra-ordinary activities Net Profit after considering all activities 13,360, , Provision For Staff Bonus 1,214,601 28, Provision For Income Tax 3,360,262 - This Year s 3,360,262 - Previous Year s - - NET PROFIT 8,785, ,867 Schedule No to 4.28, 4.32 & 4.33 form integral part of this Profit and Loss Account. As per our report of even date Zanak Bahadur Rawal Head-Accounts & Administration Kumar Lamsal Dy. General Manager Badri Prasad Ojha Executive Chairman Madan Krishna Sharma Partner CSC & Co., Chartered Accountant Arun Kumar Ojha Director Dilip Shrestha Director Tek Raj Niraula Director Niraj Govinda Shrestha Director Date : ( ) Place : Kathmandu 27

30 PROFIT AND LOSS APPROPRIATION ACCOUNT For the period July 16, 2005 to July 16, 2006 (Shrawan 1, 2062 to Ashad 32, 2063) PARTICULARS SCHEDULES THIS YEAR PREVIOUS YEAR Income 1 Accumulated Profit up to the Last Year 203,894-2 Current Year s Profit 8,785, ,867 3 Exchange Fluctuation Fund - - Total 8,989, ,867 Expenses 1 Accumulated Loss up to the Last Year This Year s Loss General Reserve Fund (20%) 1,757,149 50,973 4 Contingent Reserve Fund Institutional Development Fund Dividend Equalization Fund Employee Related Reserves Funds Proposed Dividend Proposed Issue of Bonus Shares Special Reserve Fund Exchange Fluctuation Fund (25%) 22, Capital Redemption Reserve Fund Capital Adjustment Fund Total 1,779,297 50, ACCUMULATED PROFIT/(LOSS) 7,210, ,894 As per our report of even date Zanak Bahadur Rawal Head-Accounts & Administration Kumar Lamsal Dy. General Manager Badri Prasad Ojha Executive Chairman Madan Krishna Sharma Partner CSC & Co., Chartered Accountant Arun Kumar Ojha Director Dilip Shrestha Director Tek Raj Niraula Director Niraj Govinda Shrestha Director Date : ( ) Place : Kathmandu 28

31 STATEMENT OF CHANGES IN EQUITY Fiscal Year 2005/06 (2062/63) PARTICULARS SHARE ACCUMULATED GENERAL CAPITAL SHARE EXCHANGE OTHER TOTAL PROFIT/LOSS RESERVE RESERVE PREMIUM FLUCTUATION RESERVE AMOUNT FUND FUND FUND AND FUND Opening Balance 224,000, ,894 50, ,254,867 Current Year s Net Profit - 8,785, ,785,745 General Reserve - (1,757,149) 1,757, Exchange Fluctuation Fund - (22,148) , CLOSING BALANCE 224,000,000 7,210,342 1,808, , ,040,612 CASH FLOW STATEMENT For the period July 16, 2005 to July 16, 2006 (Shrawan 1, 2062 to Ashad 32, 2063) PREVIOUS YEAR PARTICULARS THIS YEAR 3,112,025 (a) Cash flow from Operating Activities 16,514,685 14,028,443 1 Cash Received 63,338,753 9,923, Interest Income 57,715,167 78, Commission and Discount Income 859, Income from Foreign Exchange Transaction (11,721) Recovery of Written off Loan - 4,026, Other Income 4,775,916 10,916,418 2 Cash Payment 46,824,068 3,260, Interest Expenses 26,142,443 4,381, Staff Expenses 8,363,924 3,273, Office Overhead Expenses 8,757, Income Tax Paid 3,560, Other Expenses - (193,261,941) Cash Flow Before Working Capital Activities 18,582,594 (432,144,410) Increase/(Decrease) of Current Assets (518,651,154) (169,986,771) 1 (Increase)/Decrease in Money at Call and Short Notice (6,973,700) - 2 (Increase)/Decrease in Short-term Investments - (250,588,191) 3 (Increase)/Decrease in Loan and Bills Purchase (508,044,475) (11,569,448) 4 (Increase)/Decrease in Other Assets (3,632,979) 238,882,469 Increase/(Decrease) of Current Liabilities 537,233, ,355,255 1 Increase/(Decrease) in Deposits 511,641,109-2 Increase/(Decrease) in Certificate of Deposits Increase/(Decrease) in Short-term Borrowings 25,000, ,214 4 Increase/(Decrease) in Other Liabilities 592,639 (16,916,425) (b) Cash flow from Investment Activities (3,234,666) - 1 (Increase)/Decrease in Long-Term Investment - (16,916,425) 2 (Increase)/Decrease in Fixed Assets (3,234,666) - 3 Interest Income From Long-Term Investment Dividend Income - Contd... on Page 30 29

32 Contd... from Page 29 CASH FLOW STATEMENT For the period July 16, 2005 to July 16, 2006 (Shrawan 1, 2062 to Ashad 32, 2063) PREVIOUS YEAR PARTICULARS THIS YEAR 224,000,000 (c) Cash flow from Financing Activities Increase/(Decrease) in Long-Term Borrowings (Bonds, Debentures etc.) - 224,000,000 2 Increase/(Decrease) in Share Capital Increase/(Decrease) in Other Liabilities Increase/(Decrease) in Refinance/Facilities From Nepal Rastra Bank - - (d) Income/Expenses from change in Exchange Rate in Cash and Bank Balances 88,592 16,933,659 (e) This Year s Cash Flow from All Activities 31,951,205 - (f) Opening Balance of Cash and Bank Balances 16,933,659 16,933,659 (g) Closing Balance of Cash and Bank Balances 48,884,864 As per our report of even date Zanak Bahadur Rawal Head-Accounts & Administration Kumar Lamsal Dy. General Manager Badri Prasad Ojha Executive Chairman Madan Krishna Sharma Partner CSC & Co., Chartered Accountant Arun Kumar Ojha Director Dilip Shrestha Director Tek Raj Niraula Director Niraj Govinda Shrestha Director Date : ( ) Place : Kathmandu Schedule 4.1 SHARE CAPITAL AND OWNERSHIP As on July 16, 2006 PREVIOUS YEAR PARTICULARS THIS YEAR 224,000,000 1 Share Capital 224,000, ,000, Authorized Capital 640,000, ,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, Issued Capital 320,000, ,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, Paid up Capital 224,000, ,000,000 a) 2,240,000 Ordinary Shares of Rs.100 each 224,000,000 - b). Proposed Bonus Shares Rs... each - - c). Non-redeemable Preference Shares of Rs.. each - - d). Redeemable Preference Shares of Rs... each 30

33 SHARE OWNERSHIP PREVIOUS YEAR PARTICULARS THIS YEAR SHARE CAPITAL % % SHARE CAPITAL 224,000,000 1 Local Ownership 224,000, Nepal Government A Class Licensed Institutions Other Financial Institutions Other Institutions General Public - 224,000, Others ,000,000-2 Foreign Ownership - 224,000,000 TOTAL 224,000,000 LIST OF PROMOTERS HOLDING MORE THAN 0.5 % OF PAID-UP SHARE CAPITAL SR. NO. NAME OF THE PROMOTERS NO. OF SHARES AMOUNT PERCENTAGE 1 Mr. Tek Raj Niraula 448,000 44,800, Mr. Arun Kumar Ojha 448,000 44,800, Mr. Binay Kumar Shrestha 175,000 17,500, Mr. Ghanshyam Thapa 174,000 17,400, Mr. Ramkrishna Shah 120,000 12,000, Mr. Dilip Shrestha 52,000 5,200, Mr. Dineshmani Shrestha 73,000 7,300, Mr. Jibanath Lamichhane 200,000 20,000, Mr. Khemraj Lamichhane 150,000 15,000, Dr. Gopal Prasad Shrestha 12,000 1,200, Mr. Ganesh Prasad Pokhrel 20,000 2,000, Dr. Niraj Govinda Shrestha 200,000 20,000, Dr. Birendra Prasad Mahato 150,000 15,000,

34 Schedule 4.2 RESERVE FUNDS As on July 16, 2006 PREVIOUS YEAR PARTICULARS THIS YEAR 50,973 1 General Reserve Fund 1,808,122-2 Capitalization Reserve Fund Capital Redemption Reserve 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 - 203,894 5 Accumulated Profit/(Loss) 7,210,342-6 Exchange Equalization Fund 22, ,867 TOTAL 9,040,612 Schedule 4.3 DEBENTURES AND BONDS As on July 16, 2006 PREVIOUS YEAR PARTICULARS THIS YEAR - 1. Percent Bonds/Debentures of Rs. each - - Issued on and Matured on (Outstanding balance of Redemption Reserve Rs..) Percent Bond/Debentures of Rs. each - - Issued on and Matured on (Outstanding Balance of Redemption Reserve Rs..) TOTAL (1+2+3) - Note : Particulars of securities shall be disclosed in case the Debentures/Bonds are issued with assigned securities. 32

35 Schedule 4.4 BORROWINGS As on July 16, 2006 PREVIOUS YEAR PARTICULARS THIS YEAR A. Local - 1 Nepal Government Nepal Rastra Bank Repo Obligation Inter Bank and Financial Institutions 25,000,000-5 Other Financial Institutions Others - - Total 25,000,000 B. Foreign Banks Others - - Total - - TOTAL (A+B) 25,000,000 PREVIOUS YEAR PARTICULARS THIS YEAR 1 Non-Interest Bearing Accounts Schedule 4.5 DEPOSITS As on July 16, ,030,020 A. Current Deposits 19,073,673 4,030, Local Currency 19,073, Nepal Government A Class Licensed Institutions - 308, Other Licensed Financial Institutions 110,000 2,177, Other Organized Institutions 9,100,433 1,544, Individuals 9,731, Others 131, Foreign Currency Nepal Government A Class Licensed Institutions Other Licensed Financial Institutions Other Organized Institutions Individuals Others - - B. Margin Deposits 3,525,550-1 Employee Guarantees Guarantee Margin 3,525,550-3 Letters of Credit Margin - - C. Others - 1. Local Currency Financial Institutions Other Organized Institutions Individuals - Contd... on Page 34 33

36 Contd... from Page 33 Schedule 4.5 DEPOSITS As on July 16, 2006 PREVIOUS YEAR PARTICULARS THIS YEAR - 2. Foreign Currency Financial Institutions Other Organized Institutions Individuals - 4,030,020 Total of Non-Interest Bearing Accounts 22,599,223-2 Interest Bearing Accounts - 64,332,954 A. Savings Deposits 223,662,116 64,332, Local Currency 208,029,513 6,538, Organized Institutions 36,274,059 57,589, Individuals 171,755, , Others Foreign Currency 15,632, Organized Institutions Individuals 15,632, Others - 70,625,000 B. Fixed Deposits 234,213,750 70,625, Local Currency 234,213,750 46,600, Organized Institutions 122,113,750 24,025, Individuals 102,100, Others 10,000, Foreign Currency Organized Institutions Individuals Others - 99,367,281 C. Call Deposits 269,521,275 99,367, Local Currency 269,521, A Class Licensed Institutions - 58,231, Other Licensed Institutions 263,902,763 30,013, Other Organized Institutions 5,618,512 11,121, Individuals Others Foreign Currency A Class Licensed Institutions Other Licensed Institutions Other Organized Institutions Individuals Others - - D. Certificate of Deposit Organized Institutions Individuals Others - 234,325,235 Total of Interest Bearing Accounts 727,397, ,355,255 TOTAL DEPOSIT (1+2) 749,996,364 34

37 Schedule 4.6. BILLS PAYABLE As on July 16, 2006 PREVIOUS YEAR PARTICULARS THIS YEAR - 1 Local Currency Foreign Currency - - TOTAL - Schedule 4.7 OTHER LIABILITIES As on July 16, 2006 PREVIOUS YEAR PARTICULARS THIS YEAR - 1 Pension/Gratuity Fund Employees Provident Fund Employees Welfare Fund - 28,318 4 Provision for Staff Bonus 1,214,601-5 Interest Payable on Deposits Interest Payable on Borrowings 10,479-7 Unearned Discount and Commission 320, ,687 8 Sundry Creditors 20,091-9 Branch Adjustment Account - 350, Others 1,128, ,531 TOTAL 2,694,421 Schedule 4.8 CASH BALANCE As on July 16, 2006 PREVIOUS YEAR PARTICULARS THIS YEAR 6,856,265 1 Local Currency (including coin) 14,717,905-2 Foreign Currency 1,706,720 6,856,265 TOTAL 16,424,625 35

38 Schedule 4.9 BALANCE WITH NEPAL RASTRA BANK As on July 16, 2006 PREVIOUS YEAR PARTICULARS LOCAL CURRENCY FOREIGN CURRENCY THIS YEAR INDIAN CONVERTIBLE TOTAL GRAND TOTAL CURRENCY 8,023,954 1 Nepal Rastra Bank 30,534, ,534,788 8,023,954 a) Current Account 30,534, ,534,788 - b) Other Account Schedule 4.10 BALANCE WITH BANKS/FINANCIAL INSTITUTIONS As on July 16, 2006 PREVIOUS YEAR PARTICULARS LOCAL CURRENCY FOREIGN CURRENCY THIS YEAR INDIAN CONVERTIBLE TOTAL GRAND TOTAL CURRENCY 2,053,440 1 Local Licensed Institutions 1,000, ,643-1,925,451 2,053,440 a) Current Account 1,000, ,643-1,925,451 - b) Other Account Foreign Banks a) Current Account b) Other Account ,053,440 TOTAL 1,000, ,643-1,925,451 Note : Total Balance for which the confirmations are received from respective licensed institutions Rs.3,783,192 Schedule 4.11 MONEY AT CALL AND SHORT NOTICE As on July 16, 2006 PREVIOUS YEAR PARTICULARS THIS YEAR 169,986, Local Currency 147,884, Foreign Currency 29,075, ,986,771 TOTAL 176,960,471 36

39 Schedule 4.12 INVESTMENTS As on July 16, 2006 PREVIOUS YEAR PARTICULARS PURPOSE THIS YEAR TRADING OTHER - 1 Nepal Government Treasury Bills Nepal Government Savings Bond Nepal Government Other Securities Nepal Rastra Bank Bonds Foreign Securities Local Licensed Institutions Foreign Banks Origanized Institutions Shares Corporate Bonds and Debentures Other Investments Total Investment Provision NET INVESTMENT Schedule 4.12 (A) INVESTMENT IN SHARES, DEBENTURES AND BONDS As on July 16, 2006 PREVIOUS YEAR PARTICULARS COST PRICE MARKET PRICE PROVISION - 1 Investment in Shares Co. (Pvt. Ltd./Ltd.) Ordinary Shares of Rs.. Paid up Co. (Pvt. Ltd./Ltd.) Ordinary Shares (including.. Bonus Shares of Rs... Paid up Co. (Pvt. Ltd./Ltd.) % preference shares of Rs.. Paid up Investment in Debentures and Bonds Co. (Pvt. Ltd./Ltd.) % Debentures/Bonds of Rs.. each Total Investment Provision for Loss Provision Up to Previous Year Additions This Year Total Provision NET INVESTMENT

40 Schedule 4.13 CLASSIFICATION OF LOAN AND BILLS PURCHASED AND PROVISIONING As on July 16, 2006 ADVANCES BILLS PURCHASED/DISCOUNTED DOMESTIC PREVIOUS YEAR PARTICULARS PRIORITY INSURED UNINSURED OTHERS FOREIGN TOTAL DOMESTIC FOREIGN TOTAL THIS YEAR 250,588,191 1 Performing Loan ,632, ,632, ,632, ,588, Pass Loan ,632, ,632, ,632, Restructured Non-Performing Loan Substandard Doubtful Bad ,588,191 (A) Total Loan ,632, ,632, ,632,665 2,421,407 3 Loan Loss Provision - - 7,586,327-7,586, ,586,327 2,421, Pass - - 7,586,327-7,586, ,586, Restructured Substandard Doubtful Bad ,421,407 (B) Total Provisioning - - 7,586,327-7,586, ,586,327-4 Provisioning up to Previous Year Pass Restructured Substandard Doubtful Bad (C) Total Previous Year s Provision - - 2,421,407-2,421, ,421,407 (D) Written Back From Previous Year (E) Additional Provision of Current Year Changes in This Year - - 5,164,920-5,164, ,164, ,166,784 NET LOAN (A-B) ,046, ,046, ,046,338 38

41 Schedule 4.13 (A) LOAN, ADVANCES AND BILLS PUCHASED SECURITY WISE As on July 16, 2006 PREVIOUS YEAR PARTICULARS THIS YEAR 250,588,191 (A) Secured 758,632, ,140,691 1 Movable/Immovable Assets 740,537,665-2 Guarantee of Local Licensed Institutions Government Guarantee Internationally Rated Bank Guarantee Export Documents Fixed Deposit Receipts - 8,447,500 a) Own Fixed Deposit Receipt 18,095,000 - b) Fixed Deposit Receipt of Other Licensed Institutions Government Bonds Counter Guarantee Personal Guarantee Other Securities - - (B) Unsecured - 250,588,191 TOTAL 758,632,665 39

42 Schedule 4.14 FIXED ASSETS As on July 16, 2006 ASSETS PREVIOUS YEAR PARTICULARS BUILDING VEHICLES MACHINERY OFFICE OTHERS THIS YEAR EQUIPMENT - 1 At Cost a. Previous Year Balance - 4,967,900-5,773,872-10,741,772 10,741,772 b. Addition This Year - 1,054,570-1,270,308-2,324,878 - c. Revaluation/Written Back This Year d. This Year Sold e. This Year Written off ,741,772 Total Cost (a+b+c+d+e) - 6,022,470-7,044,180-13,066,650-2 Depreciation a. Up to Previous Year - 579, ,224-1,373,812 1,373,812 b. For This Year - 893,637-1,382,407-2,276,044 c. Depreciation on - Revaluation/Written Back ,373,812 Total Depreciation - 1,473,225-2,176,631-3,649,856 9,367,960 3 Book Value (WDV*) (1-2) - 4,549,245-4,867,549-9,416,794-4 Land Capitalization Construction (Pending Capitalization) ,797,831 6 Leasehold Assets ,978,591 5,978,591 15,165,791 TOTAL ( ) - 4,549,245-4,867,549 5,978,591 15,395,385 40

43 Schedule 4.15 NON-BANKING ASSETS As on July 16, 2006 PREVIOUS YEAR NAME AND ADDRESS DATE OF ACCEPT TOTAL AMOUNT OF LOSS PROVISION NET NON-BANKING OF BORROWER NON-BANKING NON-BANKING IN PERCANTAGE IN AMOUNT ASSETS THIS YEAR OR PARTY ASSETS ASSETS GRAND TOTAL Schedule 4.16 OTHER ASSETS As on July 16, 2006 PREVIOUS YEAR PARTICULARS THIS YEAR 312,993 1 Stationery Stock 239,296-2 Income Receivable on Investments 644,335 3 Accrued Interest on Loan 1,946,431 - Less : Interest Suspense Amount 89,400 1,857,032-4 Commission Receivable - 20,502 5 Sundry Debtors 318,713 3,647,579 6 Staff Loan and Advances 3,787, ,836 7 Prepaid Expenses 346,655-8 Cash in Transit - 310,819 9 Other Transit items ( including cheques ) 3,177, Drafts Paid without Notice - 6,246, Expenses Not Written off 4,832, Branch account - 1,599, Other 3,886,024 12,912,648 TOTAL 18,444,339 41

44 NRB Directives Schedule 4.16 (A) OTHER ASSETS (ADDITIONAL STATEMENT) As on July 16, 2006 THIS YEAR PREVIOUS YEAR PARTICULARS UP TO 1 YEAR 1 TO 3 ABOVE 3 TOTAL THIS YEARS YEARS YEAR 644,335 1 Accrued Interest on Loan 1,946, ,946,431-2 Drafts Paid without Notice Branch Adjustment Account ,523,916 4 Local and Foreign Agency A/Cs 3,424, ,424,491 Schedule 4.17 CONTINGENT LIABILITIES As on July 16, 2006 PREVIOUS YEAR PARTICULARS THIS YEAR - 1 Claims on Institution but not accepted by the Institution Letters of Credit (Full Amount) - - a) Less than 6 months Maturity - - b) More than 6 months Maturity Rediscounted Bills - 4 Unmatured Guarantees/Bonds - a) Bid Bonds 800,000 - b) Performance Bonds 17,708,200 - c) Other Guarantees/Bonds Unpaid Shares in Investment Forward Exchange Contract Liabilities Bills under Collection Acceptance and Endorsements Underwriting Commitments - 38,514, Irrevocable Loan Commitments 42,562, Counter Guarantee of Internationally Rated Banks Advance Payment Guarantee 6,282, Financial Guarantee 14,150, Contingent Liabilities on Income Tax Others - 38,514,740 TOTAL 81,502,467 42

45 Schedule 4.18 INTEREST INCOME For the period July 16, 2005 to July 16, 2006 (Shrawan 1, 2062 to Ashad 32, 2063) PREVIOUS YEAR PARTICULARS THIS YEAR 9,068,417 A. On Loan, Advances and Overdraft 51,654,448 8,426,145 1 Loan and Advances 43,560, ,272 2 Overdraft 8,094,177 - B On Investment Nepal Government Securities - - a. Treasury Bills - - b. Development Bonds - - c. National Savings Certificates Foreign Securities - - a b Nepal Rastra Bank Bond Debenture and Bonds - - a. Financial Institutions - - b. Other Organizations - - C On Agency Balances Local Banks/Financials Institutions Foreign Banks - 3,023,496 D On Money at Call and Short Notice 9,099,196 3,023,496 1 Local Banks/Financial Institutions 9,057,517-2 Foreign Banks 41,679 - E On Others 74,795-1 Certificate of Deposits Inter-Bank Loan 74,795-3 Others - 12,091,913 TOTAL 60,828,439 43

46 Schedule 4.19 INTEREST EXPENSES For the period July 16, 2005 to July 16, 2006 (Shrawan 1, 2062 to Ashad 32, 2063) PREVIOUS YEAR PARTICULARS THIS YEAR 3,193,163 A. On Deposit Liabilities 23,500,607 1,518,071 1 Fixed Deposits 7,553,178 1,518, Local Currency 7,553, Foreign Currency - 1,149,052 2 Savings Deposits 6,693,167 1,149, Local Currency 6,681, Foreign Currency 11, ,040 3 Call Deposits 9,254, , Local Currency 9,254, Foreign Currency Certificate of Deposits - 67,699 B On Borrowings 2,652,315-1 Debentures and Bonds Loan from Nepal Rastra Bank - 67,699 3 Inter Bank/Financial Institutions Borrowing 2,652,315-4 Other Corporate Body Other Loans - - C On Others ,260,862 TOTAL 26,152,922 Schedule 4.20 COMMISSION AND DISCOUNT For the period July 16, 2005 to July 16, 2006 (Shrawan 1, 2062 to Ashad 32, 2063) PREVIOUS YEAR PARTICULARS THIS YEAR 59,579 A Bills Purchase and Discount - 59,579 1 Local Foreign - - B Commission 411,096-1 Letters of Credit Guarantee 348,999-3 Collection Fee 50,034-4 Remittance Fee Credit Cards Share Underwriting/Issues Government Transactions Agency Commission Exchange Income 12,063 19,169 C Others 128, ,748 TOTAL 539,141 44

47 Schedule 4.21 OTHER OPERATING INCOME For the period July 16, 2005 to July 16, 2006 (Shrawan 1, 2062 to Ashad 32, 2063) PREVIOUS YEAR PARTICULARS THIS YEAR - 1 Rental on Safe Deposit Lockers 67,500-2 Issue and Renewals of Credit Cards Issue and Renewals of ATM Cards Telex/T.T. - 4,023,227 5 Service Charges 4,695,915-6 Renewal Fees - 2,806 7 Others 12,501 4,026,033 TOTAL 4,775,916 SCHEDULE 4.22 EXCHANGE GAIN/LOSS For the period July 16, 2005 to July 16, 2006 (Shrawan 1, 2062 to Ashad 32, 2063) PREVIOUS YEAR PARTICULARS THIS YEAR - (A) Revaluation Gain 88,592 - (B) Trading Gain (Except Exchange Income) (11,721) - TOTAL INCOME/(LOSS) 76,871 Schedule 4.23 EMPLOYEE EXPENSES For the period July 16, 2005 to July 16, 2006 (Shrawan 1, 2062 to Ashad 32, 2063) PREVIOUS YEAR PARTICULARS THIS YEAR 2,768,670 1 Salary 4,607,709 1,339,537 2 Allowances 3,020, ,811 3 Contribution to Provident Fund 396,072 30,702 4 Training Expenses 77,500-5 Uniform 146,856-6 Medical Insurance Pension and Gratuity Provision - 7,890 9 Others 115, ,381,610 TOTAL 8,364,845 45

48 Schedule 4.24 OFFICE OPERATING EXPENSES For the period July 16, 2005 to July 16, 2006 (Shrawan 1, 2062 to Ashad 32, 2063) PREVIOUS YEAR PARTICULARS THIS YEAR 1,145,000 1 House Rent 1,937, ,915 2 Electricity and Water 478,858 15,559 3 Repair and Maintenance 85,856 - (a) Building - 15,559 (b) Vehicles 12,426 - (c) Others (Software) 73, ,959 4 Insurance 385,705 89,535 5 Postage, Telex, Telephone, Fax 361,858 6,590 6 Office Equipment, Furniture and Repair 42,722 61,072 7 Travelling Allowances and Expenses 370, ,161 8 Stationery and Printing 456,412 4,991 9 Periodicals and Books 11, , Advertisements 2,075,205 61, Legal Expenses 138, Donations , Expenses Relating to Board of Directors 633, ,500 (a) Meeting Fees 561,500 3,943 (b) Other Expenses 71, Annual General Meeting Expenses 16,957 45, Expenses Relating to Audit 157,180 45,200 (a) Audit Fees 79,100 - (b) Other Expenses 78, Commission on Remittances - 1,373, Depreciation on Fixed Assets 2,276, , Amortization of Preliminary Expenses 1,214, Share Issue Expenses Technical Services Fee - 68, Entertainment 162, , Written Off Expenses 928, , Security Expenses 455, Credit Guarantee Premium Commission and Discount - 553, Others 987,012 9, Local Conveyance Exp. 32,390 30, Office Maintenance 57, , Vechile Fuel & Tax 416,969 24, Office Equipement (Non-Capitalized) 6, , Financial Consultancy Service Fee 302, , Membership Fee 93,475 29, Miscellaneous 77,466 5,849,630 TOTAL 13,177,072 46

49 Schedule 4.25 PROVISION FOR POSSIBLE LOSSES For the period July 16, 2005 to July 16, 2006 (Shrawan 1, 2062 to Ashad 32, 2063) PREVIOUS YEAR PARTICULARS THIS YEAR 2,421,407 1 Increase in Loan Loss Provision 5,164,920-2 Increase in Provison for Loss on Investment Provision Against Non-Banking Assets Provision Against Other Assets - 2,421,407 TOTAL 5,164,920 Schedule 4.26 NON-OPERATING INCOME/LOSS For the period July 16, 2005 to July 16, 2006 (Shrawan 1, 2062 to Ashad 32, 2063) PREVIOUS YEAR PARTICULARS THIS YEAR - 1 Profit (Loss) on Sale of Investment Profit (Loss) on Sale of Assets Dividend Subsidies Received from Nepal Ratra Bank - - a. Reimbursement of Losses of Specified Branches - - b. Interest Subsidy - - c. Exchange Counter Others - - TOTAL NON-OPERATING INCOME (LOSS) - Schedule 4.27 LOSS PROVISIONS WRITTEN BACK For the period July 16, 2005 to July 16, 2006 (Shrawan 1, 2062 to Ashad 32, 2063) PREVIOUS YEAR PARTICULARS THIS YEAR - 1 Loan Loss Provision Written Back Provision against Non-Banking Assets Written Back Investment Provision Written Back Provision against Other Assets Written back - - TOTAL - 47

50 Schedule 4.28 INCOME /EXPENSES FROM EXTRA-ORDINARY ACTIVITIES For the period July 16, 2005 to July 16, 2006 (Shrawan 1, 2062 to Ashad 32, 2063) PREVIOUS YEAR PARTICULARS THIS YEAR - 1 Recovery of write off Loan Voluntary Retirement Scheme Expenses Loan Write-Off (4.28) (a) Other Expenses/Income TOTAL - Schedule 4.28 (a) STATEMENT OF LOANS WRITTEN-OFF For the period July 16, 2005 to July 16, 2006 (Shrawan 1, 2062 to Ashad 32, 2063) S.N. TYPES OF LOAN WRITTEN OFF TYPE OF BASIS OF LOAN APPROVED INITIATION REMARKS AMOUNT SECURITY VALUATION OF BY NAME/ MADE COLLATERAL DESIGNATION FOR RECOVERY 1 Working Capital Loan Project Loan Fixed Capital Loan Personal Loan Other Loan TOTAL LOAN