Annual Report - Sanima Bank...Sanima Bank Limited (Sanima) started its banking journey in 2004 as a...

AnnuAl RepoRt2011-12

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Annual Report 2011/12

‘A’ Class Institution Licensed by Nepal Rastra Bank

Inagurati on of Sanima as a Commercial Bank by Governor Dr. Yuba Raj Khati wada

CONTENTSOur Mission 4Capital Structure 4Shareholding Pattern 4Profile 4Chairman’s Message 7Message from CEO 10Message from Brand Ambassador 13Financial Highlight 14Board of Directors 16Directors’ Report 17Corporate Social Responsibility/Loyalty Programs 22Management Team 26Our Business 28Training/Development/Sports 30Products and Services 31Sanima’s footprints across the country 32Auditor Report 33Financial Statements 34

Our MissionTo provide customer-focused banking and financial solutions in a simplified manner and to add value to stakeholder interests.

Capital StructureAuthorised Capital: Rs. 2,100 millionIssued Capital: Rs. Rs.2, 016 millionPaid-up Capital: Rs. 2,016 million

Shareholding PatternPromoters: 70 %General Public: 30 %

ProfileSanima Bank Limited (Sanima) started its banking journey in 2004 as a national level “B” class development bank. The Bank is promoted by prominent and dynamic non-resident Nepali (NRN) businessmen. Taking corporate governance as its top priority aside from being cus-tomer-oriented, Sanima has been able to establish itself as an “A” class commercial bank of the country. The vision of the bank is opti-mum mobilization of resources for national development. Sanima has progressively continued to be profitable since its operation. Sanima believes that the “customer is king” and pledges to deliver products and services in a customized and simplified manner.

Ever since its inception, Sanima has offered a wide range of products and services best suited to customers’ needs. Dedicated and hospita-ble professional employees are our strength and they have been able to win the hearts of customers and stakeholders by ensuring high standards of quality service and corporate governance. In line with extending our reach to every citizen of the country, we have today 22 full fledged branches across the country. Our expansion plan is underway to have more footprints in different parts of the country.

Sanima has always taken the initiative for the wellbeing of the society in which it operates and has been contributing to different sectors like health, employment, and education. We assure our commitment to give continuation to such a noble cause.

Annual Report 2011/12 5

Consistency in performance is what we aim for, and this is why Sanima is a bank you can depend on.

Sanima Bank6

Dear Shareholders, It is with immense pleasure that I welcome you all to the 8th Annual General Meeting of Sanima Bank Limited (Sanima) on behalf of the Board of Direc-tors and myself. The Bank has completed eight years of its operation. Despite the unfavorable situation in the financial sector, the Bank has been able to achieve success. For this achievement, I would like to thank all our stakeholders.

With continuous net profits since the beginning of our operations, we have continued to expand our area of functioning as well as our branches in this fiscal year too. Now, the Bank has 22 branches and more than 72,000 customers throughout the coun-try. The Bank has opened its new branch at Butwal (trading hub) in this fiscal year and will be providing banking services from Baneshwor and Teku shortly. We have been providing banking services to our

customers from remote areas like Khandbari of Sankhuwasabha and Myanglung of Terhathum where banking access to the people is very low. The same will be continued in the coming days as well. “De-spite the tough competitive banking environment and the ongoing entry of new banks and financial institutions, we have been able to establish ourselves as a commercial bank, thereby increasing our depos-its, risk assets, and profit. During Fiscal Year 2068/69, we could register a net profit of Rs.121.77 million. It has been proposed to provide 5.50 % cash dividend out of the net profit to shareholders.

We have set up our own independent internal audit department which reports directly to the Audit Com-mittee. Our statutory auditor is CSC & Co. We have ensured an environment where our internal audit can work independently and our Audit Committee is com-mitted to implement feedbacks and suggestions pro-


Chairman’s Message“Despite the tough competitive banking environment and the ongoing entry of new banks and financial institutions, we have been able to establish ourselves as a commercial bank, thereby increasing our depos-its, risk assets, and profit.”

vided independently by the auditors. The Bank’s success can be attributed to due attention paid by the Bank in the area of corporate governance and financial discipline. Sanima’s management is well aware of the need to make its operations more participative, dynamic, and scientific. To strengthen the morale of our valuable employees, we also ensure increase in remuneration and benefits in line with the market median.

Regardless of having strong policies for commencing new commercial banks/upgradation, in FY 2068/69, Sanima was able to receive the operating license from Nepal Rastra Bank and came into operation as an “A” class commercial bank from Falgun 3, 2068. Being in a tough competitive banking environment, but where there is immense potential for growth, Sanima, in or-der to enhance its capabilities, has executed necessary skill development policies to groom its existing staff besides recruiting qualified and competent personnel.

For global exposure, Sanima has tied up with 35 inter-national financial institutions which has had a positive impact in trade finance, remittance, and other transac-tions. Also, I would like to bring to your notice that Sanima is providing full fledged services from its own advanced and highly facilitated building, “Alakapuri”, at Naxal, Kathmandu.

The Bank has introduced different deposit and lend-ing products to develop all round diversification and has been giving due importance to mobilizing per-petual resources for sustainable development. Sanima is always concerned for the betterment and upliftment of the society/community where it exists and operates, and has been carrying out different CSR activities contributing to various social sectors. Sanima has donated a photocopy machine (facilitated with scanner and printer) to Nandi Higher Secondary

Sanima Bank8

School of Nagpokhari, Naxal. To mark its 7th Annual Day, Sanima provided food and clothing to the chil-dren of Nepal Children’s Organization besides carry-ing out a blood donation program, free health camp, and eye treatment and dental checkup programs from its different branches. To provide meaningful contribution to the poor/under-privileged people in education, health and employment sectors, Sanima, through a recommendation committee at the local level from its 14 branches outside the valley (Khand-bari, Myanglung, Damak, Belbari, Inaruwa, Biratnagar, Narayanghat, Bhandara, Nepalgunj, Birgunj, Butwal, Pokhara, Naubise, and Dhading), has selected two of the most eligible candidates from each branch. The 28 students thus nominated have been awarded the San-ima Scholarship for higher secondary level education in colleges of their own choice and in the interested faculty. The scholarships provide reimbursement for colleges fees and books and stationeries along with a monthly stipend of NPR 2,000. Similarly, Sanima has been providing free eye treatment by tying up with Tilganga Eye Hospital in Kathmandu, Ramlal Golcha Eye Hospital in Biratnagar, Butwal Lion Eye Hospital in Butwal, and Himalayan Eye Hospital in Pokhara. Also, Sanima has started providing self employment trainings to 5 youth each through Dhading, Naubise, Myanglung, Khandbari, Belbari, Damak, Inaruwa, and Bhandara branches. Sanima also supported the com-munity police and locals of Naxal, Kathmandu, with

NPR 150,000 for cleaning and planting trees in Naray-anchaur (opposite of ‘Alakapuri’). Sanima is com-mited to continue such contributions in the coming days as well.

Prerequisites required for sustainable banking busi-ness such as customer-oriented service, enhancement of loan quality, economy in operating expenses, cor-porate governance, etc., will be continued as always.

I express my sincere gratitude to all our sharehold-ers and guests for your kind presence and look forward for your continued support and coopera-tion. We would like to assure that your suggestions and recommendations will be guiding factors for us which shall be given due consideration as appropri-ate. I look forward for continued directions from the Board of Directors, dedication and hard work from our staff members, and valuable advice and support from all our shareholders and stakeholders.

I once again welcome you all to this 8th Annual Gen-eral Meeting.

Thank you.

Jibanath LamichhaneChairman


A solid foundation is what makes Sanima a strong and reliable bank.

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With immense pleasure and great pride, I would like to announce that we have achieved a triumph in operat-ing ourselves as an “A” class commercial bank despite the tough banking scenario and competitive market. Looking back to the past eight years, Sanima has been able to be in profitable operation with good corporate governance and now has a large base of satisfied cus-tomers. This has been possible due to the incredible support we have received from our valuable custom-ers, stakeholders, promoters, shareholders, dedicated staff, and each and every person directly/indirectly as-sociated with the Bank. I am truly grateful for their un-wavering support and trust.

Moving in a bigger way, we have offered a wide range of products and services, enhanced facilities, extended

Message from CEO“We shall focus on distin-guishing ourselves as a secure market player and provider of quality services.”


Sanima is actively participative when it comes to serving society as it believes that the existence of any financial organization depends highly upon the society/community where it operates. Being a re-sponsible member of society, Sanima has been or-ganizing various CSR programs, thus contributing to different sectors of society.

I would like to reiterate my commitment on behalf of the management team to take this Bank to even greater stature in the days to come.

Thank you.

Kumar LamsalCEO

networks, and qualified and hospitable human resourc-es. We have introduced our own remittance service, set up a separate department for trade finance, and have already started bullion business. In due course, we will be extending our reach in business areas like Baneshwor and Teku in Kathmandu.

Being a commercial bank, we continue to ensure well diversified portfolios—whether it’s in deposits or in our risk assets. We shall also focus on distin-guishing ourselves as a secure market player and provider of quality services to all our customers in the spirit of our slogan—“Strong and Reliable”. We consider our staff as our prime asset and give high value to selection, training, and development of skilled staff force.

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Brand Ambassador Honorable “Ma-Ha Jodi”

Message from

Mr. Madan Krishna Shrestha and Mr. Hari Bansha Acharya, popularly known as “Ma-Ha Jodi”, is the most famous duo of the Nepali film and theatre in-dustry who have been contributing to the field of Nepal’s performing arts since the last three decades. The talented duo have not limited themselves to only acting, but have also displayed their prowess in direction and produc-tion, as well as in the musical field and in script writing. “Ma-Ha” is an ev-ergreen role model for partnership, as has been proven by their professional relationship which has lasted successfully for many years.

First of all, we would like to take this opportunity to congratulate Sanima Bank for its upgradation into a commercial bank. Taking such a big leap is of course not a one-day work. Seven years of continuous hard work has finally been reaped and thus Sanima has proven itself to be a “Strong and Reliable” bank. Furthermore, the Bank is promoted by Non-Resident Nepalese.

An experienced and highly qualified management team, the warm and welcom-ing behavior of the staff, a range of diversified and unique products, and a highly modern and spacious corporate building of its own are the main attractions of Sanima. With its up-gradation, the Bank is likely to come face-to-face with both opportunities and challenges. New working areas as well as business will increase accordingly, and we truly believe that Sanima will be successful in its endeavors.

We feel glad to be associated with Sanima Bank as its Brand Ambassador and wish it continued success.

Madan Krishna Shrestha Hari Bansha Acharya

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Financial Highlight

Composition of Deposit

Composition of Expenses

Composition of Income4%

16%

31%

49%

0%

Current

Call

Saving

FD

Margin

1%

4%

0%

95%

Fees Commssion & Discount

Other opera ng Income

Exchange Fluctua on

Interest Income

77%

8%

15%

Interest Expenses

Sta Expenses

Other opera ng Expenses


Growth in Reserve and Surplus

All figures in 000’s NRs

2007/08 2008/09 2009/10 2010/11 2011/12

47,

056

64,

395

74,

795

113,

581

102,

691

Growth in Net Interest Income2007/08 2008/09 2009/10 2010/11 2011/12

418

,584

355

,456

216

,346

122

,658

81,

737

Growth in Deposit2007/08 2008/09 2009/10 2010/11 2011/12

2,88

0,87

1

4,41

7,50

4

5,76

0,49

5

11,

178,

734

6,35

6,73

7

Growth in Profit2007/08 2008/09 2009/10 2010/11 2011/12

21,4

86

57,

760 8

5,73

8

121,

770 1

55,2

20

Growth in Investment2007/08 2008/09 2009/10 2010/11 2011/12

2,10

5,77

0

916,

653

495

,610

530

,725

508

,143

Growth in Loans and Advances2007/08 2008/09 2009/10 2010/11 2011/12

2,53

3,37

7 4,03

6,98

6

5,14

5,84

9

9,64

1,28

6

6,43

6,18

5

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Board of Directors

1. Chairman Jibanath Lamichhane

5. Director Shamba Lama

2. Director Binay Kumar Shrestha

6. Director Mahesh Ghimire

3. Director Ram Krishna Shah

8. Company Secretary Rudra Banjara

4. Director Dr. Biswo Poudel

7. Director Bharat Kumar Pokhrel

1

3

6

8

2

5

4

7


Dear Shareholders,

We are pleased to greet our shareholders at this 8th Annual General Meeting and take this opportunity to present the report, together with the Balance Sheet, Profit and Loss Account, and Cash Flow Statement for Fiscal Year 2011/12 and Auditor’s Report for necessary discussion and approval.

proval from Nepal Stock Exchange Ltd. and following existing policy provisions on investment.

NRB has been using open market operations as the main instrument to manage liquidity in the banking system. Liquidity is managed through open market operations on the basis of liquidity indicated by weekly liquidity monitoring and forecasting frame-work. NRB mopped up net liquidity of Rs. 7.66 bil-lion through open market operations in FY 2011/12 of which Rs. 8.40 billion was mopped up through outright sale auction and Rs. 0.74 billion was injected through repo auction.

The average inflation rate during 10 months of FY 2011/12 had stood at 7.8 percent as compared to the annual average inflation rate of 9.6 percent in the previous year. The y-o-y inflation in mid-June of 2012 remained at 9.9 percent as against 8.8 percent dur-ing the same period of the previous year. As a result, the average inflation rate during the 11 months of 2011/12 has stood at 8 percent. In the review period, the inflation rate of food as well as non-food and services groups remained at 9.9 percent. Such rates were 14.3 percent and 4.3 percent respectively dur-ing the same period of the previous year.

The overall balance of payments (BOP) recorded its highest ever surplus of Rs. 113.22 billion during the eleven months of FY 2011/12 due to the notewor-thy improvement in the external sector transactions. The overall BOP had witnessed a deficit of Rs. 335.6 million during the corresponding period of the previ-ous year. The overall BOP surplus stood at its historic high during the review period mainly due to the im-provement in world economic outlook, high surplus (Rs. 61.56 billion) in the current account arising from the amelioration in merchandise exports and inflows of remittances due to the depreciation of Nepalese rupee against the US dollar and surplus in the net services coupled with the substantial surplus (Rs. 15.15 billion) in the capital account. Despite an im-

Snapshot of Last Year’s PerformanceA. Country's Economic ConditionAccording to the preliminary estimates of the Cen-tral Bureau of Statistics, the real gross domestic product (GDP) at basic price grew by 4.6 percent in FY 2011/12 compared to 3.8 percent last year. In the review year, the growth rates of agriculture and non-agriculture sector are estimated at 4.9 percent and 4.3 percent respectively. In the previous year, agriculture and non-agriculture sectors grew by 4.5 percent and 3.4 percent respectively.

Total consumption to GDP ratio is estimated to have dropped to 90.0 percent in FY 2011/12 com-pared to 91.4 percent in the previous year. Likewise, total investment to GDP is estimated to have in-creased marginally to 32.8 percent in the review year compared to 32.5 percent in the previous year.

The macroeconomic indicators of the country remained satisfactory in FY 2011/12. Economic growth remained higher in comparison to the past two years. Inflation stood at lower level and the government revenue mobilization remained higher than the previous year. Budget deficit is within the desired limit. Export growth remained higher com-pared to previous year and import growth also remained at desired level. Despite the high trade deficit, current account surplus remained at higher level and BOP surplus reached a historical level, leading to remarkable increase in foreign exchange reserve. A positive sign has been seen in the slug-gish share market and real estate transactions. Increased deposit mobilization of BFIs has put an end to liquidity crunch in the banking system. The declining trend in the lending rates is creating a favorable environment for investment.

A provision has been made whereby licensed “A”, ”B” and “C” class BFIs could establish a subsidiary company with at least 51 percent ownership for mutual fund or merchant banking activities after ap-

Directors’ Report

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provement in the merchandise exports due to the persistent depreciation of Nepalese currency vis-à-vis US dollar during the review period, trade deficit could not be checked as expected due to an increase in the import volume and price of petroleum products and raw materials. Total trade deficit during the 11 months of FY 2011/12 reached Rs. 352.36 billion. The share of India in total trade deficit stood at 64.4 percent.

Review of Financial Position and Operational ResultsAlthough the political instability still prevalent in the country has led to lack of opportunities and tough competition, the Bank has been able to achieve sig-nificant growth in terms of deposit, lending and di-versification of portfolio. It is well known that the Bank has been able to earn net profits since its in-ception and has always operated taking into consid-eration the overall concern of its stakeholders. We believe this has been clearly depicted in the summa-rized table presented below.

Deposit CollectionIn this fiscal year, the liquidity in the market eased somehow although the competition among the financial institutions remained tough in the mar-ket. The Bank has been able to increase total de-posits to Rs. 11,178,734,000 with a growth of 76 percent over last year’s deposits. In this fiscal year, the Bank mainly concentrated on the diversification of its deposit portfolio, changing its focus to open-ing of new accounts thus collecting deposits from individual depositors. As a result, at the end of the review period, the proportion of individual deposi-tors was 56 percent of the total deposit portfolio.

With the same objective, the Bank launched various new products and services besides re-featuring its existing products and simplifying its services. A new saving scheme, Sanima Commitment Saving Scheme, with its own unique features was launched in this fis-cal year. Similarly, the service of unlimited free with-drawals from ATM of SCT Network has become more popular among customers and has resulted in a larger increment of accounts.

Loans and AdvancesDuring this fiscal year, the total loans and advances have increased by 50 percent and reached Rs. 9,641,286,449. The Bank has always focused on lending to small and medium scale enterprises, the deprived sector, areas of national importance and service oriented industries, with the belief that growth in these sectors leads to overall growth of the nation. As per the directives given by Nepal Rastra Bank, the Bank has a portfolio of Rs. 219,232,154 in the deprived sector lending. At the end of Fiscal Year 2011/12, the portfolio of Real Estate Loan is 11.21 percent and the portfolio of Real Estate and Housing Loan is 16.33 percent. Credit to Capital plus Deposit Ratio of the Bank is 72.82 percent. All the ra-tios mentioned above are well below the guidelines set by Nepal Rastra Bank.

Sanima has always thrived on managing a balanced portfolio of loans and advances due to which it has always been able to manage its Non Performing As-sets (NPA) at low levels. This proves the efficiency of bank in managing credit risk. The Bank has always fo-cused in the hydropower sector which has a direct impact on the nation’s development. At this moment, the Bank would like to emphasize that it will continue

Rs. in thousandsMajor Financial Indicators

S.N. Particulars F.Y. F.Y. F.Y. F.Y. F.Y. Increase 2007/08 2008/09 2009/10 2010/11 2011/12 % 1 Paid Up Capital 384,000 805,166 806,400 2,016,000 2,016,000 02 Reserve & Surplus 47,056 64,395 74,795 102,691 113,581 113 Deposits 2,880,871 4,417,504 5,760,495 6,356,737 11,178,734 764 Investment 508,143 530,725 495,610 916,653 2,105,770 1305 Loans and Advances 2,533,377 4,036,986 5,145,849 6,436,185 9,641,286 506 NetOperatingIncome 98,020 160,954 256,602 395,369 474,453 207 NetOperatingExpenses 43,834 62,308 109,842 140,161 232,026 668 OperatingProfit 33,604 78,701 135,408 241,935 190,613 (21)9 NetProfit 21,486 57,759 85,738 155,220 121,770 (22)


to invest in projects having long term impact in the economic development of the nation.

ProfitContinuing its tradition of being able to earn net profits every year since its inception, Sanima has been able to achieve a net profit of Rs. 121,769,566 which is 21.55 percent reduction over last year’s net profit figure. Accepted reasons behind the stated re-duction in the net profit are as follows:

n To convey the message of upgradation into “A” class commercial bank to general public and its stakeholders along with the purpose of brand promotion and brand image building, more pro-motional expenses incurred in this fiscal year over last year’s promotional expenses. It is believed that these promotional activities will help the Bank to create its brand image in future directly or indirectly.

n The Bank has started operation from its own newly constructed building, this also led to increase in the Bank’s operational cost to some extent. However, this has helped to create the perception of a strong bank thus building public confidence to transact with the Bank.

n Some additional provisions are to be made for deficit management.

n Business growth after being “A” class institu-tion will be mainly reflected in the coming fiscal year. So, net profit figures seem to be less in this fiscal year.

Capital, Reserve and SurplusThe position of paid-up capital remained unchanged in this fiscal year. The total statutory and independent funds plus total reserve and surplus is Rs. 113,580,523. Net primary and supplementary capital are 19.86 per-cent and 0.93 percent respectively. New directives is-sued by Nepal Rastra Bank related to capital adequacy have been followed in both the cases.

Branch ExpansionIn Fiscal Year 2011/12, the Bank has expanded its branch network at Butwal, which is considered as ma-jor trading hubs of Nepal. The Bank is planning to open four new branches inside and outside Kathmandu Val-ley. Currently, the Bank is operating with 22 branches including a branch at the Head Office. The Bank will give continuity to branch expansion in future as well.

ATM ServicesIn order to facilitate 24-hours banking service, the Bank is operating a total of four Automatic Teller Machines (ATMs) at Nagpokhari and Chuchchepati in Kathmandu, Naubise in Dhading and Myanglung in Terhathum. The provision of free withdrawal service from all the ATMs using our debit cards has received an overwhelming response. With this, customers can withdraw freely from over 1,100 ATMs of SCT Network. To increase its network and cover a wider area, the Bank has already started a feasibility study of using ATM cards of VISA network.

Human ResourceA lack of efficient human resource has been felt due to opening of new banks as well massive network expan-sion by existing banks. This has also resulted in difficulty in appointing and developing efficient manpower. After the upgradation into “A” class Commercial Bank, the Bank sees this as more challenging and has already initi-ated a process of managing efficient human resource. At the end of fiscal year 2010/11, the total number of staff was 232 (two hundred and thirty-two). Furthermore, in order to develop and train its current human resource, the Bank has initiated various in-house and external trainings. The Bank has also formed a sub-committee comprising of non-executive directors for appoint-ments, formulation of employee service regulations and increment in salary and allowances. In order to retain and motivate staff, the Bank has always sought ways to strengthen its employee retention policy and to provide appropriate increment of salary and allowances.

Information and TechnologyThe Bank has already upgraded to Pumori-IV from Pumori-III since Fiscal Year 2009/10 which has re-sulted in a more secure, user-friendly and advanced system. In addition to this, the Bank has always sought for customization and up-gradation of its information technology system for smooth and sci-entific daily operations. Furthermore, new services like electronic cheque clearing under Nepal Clear-ing House Limited and SWIFT for international pay-ments and Letter of Credit (L/C) businesses have been implemented in the system.

Industrial and business relationshipSanima is run by experienced bankers. There has been very smooth and cordial relationship between the management and the employees of the Bank which

Sanima Bank20

also shares sound and mutually beneficial relationship with different business groups and individual custom-ers by providing fast and simplified banking services. Sanima has been able to gain the trust and confidence from different social sectors and is always concerned about fulfilling those expectations.

Changes in Board of DirectorsIn this fiscal year, Dr. Jugal Bhurtel, Mr. Arun Kumar Ojha, and Dr. Niraj Govinda Shrestha have resigned from the post of Directors citing their personal reasons, which has been approved by the Board of Directors. The Bank would like to thank Dr. Jugal Bhurtel, Mr. Arun Kumar Ojha, and Dr. Niraj Govinda Shrestha for their contribution during their tenure. Mr. Binaya Kumar Shrestha, Dr. Biswo Poudel, and Mr. Ram Krishna Shah have been appointed as new members in the Board of Directors for the remaining period. The Bank would like to welcome all the new members. The same has been presented for ratification in this Annual General Meeting and it is believed that the same will be ratified.

RemittanceIn order to provide better and more reliable remit-tance services and to serve a wide array of customers living in Nepal and abroad, the Bank has started its own remittance service in the name of Sanima X-press. For the same, the Bank has already appointed more than 300 agents in different locations of the country.

In a continuous effort to expand its remittance servic-es, the Bank has entered into agreements with Deniba International Exchange (UAE), Everest Money Limited (UK) and Economic Exchange Center (UAE). Such tie-ups have made our customers living in UAE and UK easier to send their money to Nepal in a more safe and convenient manner. The reach of this service will be made broader in future so that this service will be available from other countries as well.

UpgradationAs per the consent received from Nepal Rastra Bank, the Bank has started its operation as “A” class institution from February 15, 2012. This was a great achievement for us, the dream to become a com-mercial bank has been realized. This has also pro-vided us both challenges and opportunities to pre-sent better returns to our stakeholders. The Bank is determined to become a strong, reliable bank of first choice for its stakeholders and the general public.

Corporate Building "Alakapuri"The Bank has already started its operations from its own new building. The total cost for the construction of the building was around NPR 203.10 Million.

Corporate GovernanceThe Bank has been operating by fully complying with the Bank and Financial Institution Act 2063 and directives of Nepal Rastra Bank. The primary focus of the Bank has always been good corporate governance and it has always complied with direc-tives and circulars regarding corporate govern-ance. The Bank has always complied with the Know Your Customer (KYC) and Anti Money Laundering (AML) directives. New directives related to capital adequacy as per Basel-II have been followed rigor-ously. The Bank has been following all the direc-tions and suggestions given through Nepal Rastra Bank directives, onsite inspection and internal and external auditor reports. The Bank has also always striven for good corporate governance.

Internal Control SystemAn Audit Committee has been formed for imple-mentation of extensive/internal control procedures. The committee looks into the suggestions and di-rections made by external and internal auditors and directs for its implementation too. The committee also suggests for making internal control procedures more stringent. Besides these, for the smooth op-eration of the Bank, the front and back offices have been segregated under internal control system.

Finally, on behalf of the Board of Directors, I would like to express my heartfelt thanks to all sharehold-ers, customers, employees, concerned institutions of Nepal Government, Nepal Rastra Bank, Nepal Stock Exchange Limited, Company Registrar’s Office, Se-curity Board, Internal Auditors, statutory auditors, journalists, and all others for their support and sug-gestions. We expect the same kind of help and sug-gestions in the upcoming days as well.

Thank you,On behalf of the Board of Directors

Jibanath LamichaneChairmanDate:


Sanima’s strength lies in its ability to provide customized financial solutions to suit the need of each and every customer.

Sanima Bank22

Corporate Social Responsibility (CSR) has always been an integral part of Sanima. We are very much con-cerned for the development of the community/society where we work and are eager to make consistently meaningful contributions addressing their needs. As a social duty, this year too, we have served our commu-nity/society in different sectors like health, education and employment. Sanima believes that development of communities/societies ultimately means development of the country as a whole. As far as service to our cus-tomers is concerned, we have been carrying out sever-al loyalty programs besides marking various occasions to show our appreciation for the valuable support and trust they have in us.

Among others, the follwing CSR and loyalty programs have been conducted during this fiscal year:

Corporate Social ResponsibilityScholarship/Eye Treatment/Self-Employment TrainingsWith the intention of contributing in whatever way we can towards the development of society, Sanima has started providing Scholarships, Free

Eye Treatments and Self Employment Trainings to poor/under-privileged students/people through-out the country from its branches outside the Valley. The main objective of this initiative is to help out those needy people who are financially unable to achieve these basic foundations of self-growth.

n Sanima’s Scholarship Program Eligible students who are unable to manage fees for their higher secondary level education are awarded Sanima’s Scholarships. 28 students from 14 branches are reimbursed for full tuition fees and books and stationeries and provided with a monthly stipend of NPR 2,000 per student. Stu-dents can join colleges of their own choice and in the interested faculty.

For the selection of the most deserving candidates, Recommendation Committees have been formed in each branch comprising of reputed and distinguished figures of the local community. Recommendations are based on a thorough examination of each ap-plicant which includes a visit to their homes and in-dividual interviews.

Corporate Social Responsibility/ Loyalty Programs

Total cost borne for Sanima Scholarship this year is NPR 1.122 Million and expected cost for next year is NPR 2.244 Million.


n Free Eye Treatment & Self Employment Trainings We have tie-ups with several eye hospitals for provid-ing free eye treatment to those people who are un-able to bear the expenses. To name a few Tilganga Eye Hosptal in Kathmandu, Ramlal Golcha Eye Hospital in Biratnagar, Butwal Lion Eye Hospital in Butwal, Himala-yan Eye Hospital in Pokhara and Tilganga Eye Hospital in Kathmandu. Along with the treatment expenses, pa-tients referred to Tilganga Eye Hospital are also pro-vided with stay and a travelling allowances.

Similarly, with an objective to provide employ-ment opportunity to youth for their career de-velopment, we are providing self employment trainings to five most needy candidates from our branches, namely Khandbari, Myanglung, Damak, Belbari, Inaruwa, Dhading, Naubise and Bhandara. Some of the branches have already started pro-viding trainings available in local institute as per the candidate’s interest along with the required materials, certification charges and daily lunch expenses.

Blood DonationOn the occasion of 8th Annual Day, we organ-ized blood donation programs from our branches outside and inside the Valley, specifically, Damak, Belbari, Inaruwa, Biratnagar, Narayangarh, But-

wal, Kumaripati, Chuchchepati and Suryabinayak. The programs were held successfully with the full support and participation of the locals. More than 522 people donated their blood, making the event meaningful.

Sanima Bank24

Tree Plantation at NarayanchaurSanima has supported Naxal Community Service Center with NPR 150,000.00 for cleaning and plant-ing different flowering and non-flowering trees at Narayanchaur (opposite of Sanima Bank). Sanima has always been supportive of such noble acts.

Gifts to Senior Citizens

Gifts to Nari Account Holder

Customer Loyalty ProgramWith due respect to our customers for their valuable support and belief in us for such a long period, we distributed gifts to mark the auspi-cious occasions of Father’s Day and Teej.


You can rely on Sanima’s well-trained staff to provide fast and simplified banking services.

Sanima Bank26

Management Team

1. Kumar Lamsal Chief Executive Officer

5. Samir Jung Rayamajhi Head - GS,BE & Remittance

2. Sarju Kumar Thapa Senior Relationship Manager

6. Niraj Dhakal Head - Internal Audit

3. Sushil Ratna Bajracharya Head - Information Technology

4. Tej Bahadur Chand Deputy Chief Executive Officer

From left to right


8. Bobby Singh Gadtaula Head - Central Operations

7. Saroj Guragain Head - Treasury, Finance & Planning

12. Sugat Manandhar Senior Relationship Manager

9. Rudra Banjara Company Secretary & Head - Share

13. Pawan Kumar Acharya Head - Credit Risk & HR

10. Roshan Chandra Gautam Head-Liability Marketing

11. Santosh Koirala Head - Retail Banking

Sanima Bank28

To provide one window financial solutions to our customers with a wide range of products and ser-vices is only our motto. We believe in a mutually beneficial customer centric relationship and are committed to exceeding customer expectations in all areas of our business through consistent processes, innovations, and improvements. We en-deavor to empower each of our employees so as to make them proactive in supporting continuous improvement. We are always working to continu-ously improve products, services and processes to anticipate and exceed the needs of our customers.

Driven by our new slogan “;an clg ljZj;gLo”, (Strong and Reliable) we want our customers to perceive us as a strong bank that they can rely on for all their financial needs. We believe that this slogan has created a trustworthy and reliable image of the Bank in the customers’ mind.

DepositsThe Bank has introduced a variety of deposit products that are designed to suit the needs of a wide array of customers. Deposit schemes include simple and easy savings like “Sanima Sulav Savings”, high yield savings like “Sanima Premium Savings”, and specialized products like “Sanima Naari Sav-ings” and “Seniror Citizen”. The Bank also offers attractive interest rates coupled with a good ser-vice package to tap institutional deposits too. Be-side these, the Bank also has attractive returns for those willing to have their funds deposited in fixed terms deposits, with a wide option of terms and conditions.

Business BankingA dedicated Business Banking Department takes care of the big corporate houses and serves them with cus-tomized products and services designed to cater to their needs. Our large capital base and rich experience of dealing with big projects gives Sanima the required lending strength for high volume credit. Sanima is ranked with a few premier banks in Nepal in terms of volume in hydropower project finance. Sanima, along with its sustained growth, looks forward to invest in numerous big projects in various sectors including hydropower and infrastructure development. Our Relationship Managers are always at the customers’ service should there arise the need for any expert financial advice.

Retail Banking Retail Banking Department offers a broad range of products and services to meet the borrowing, wealth management and transaction needs of in-dividuals and small businesses. Sanima Auto Loan and Sanima Home Loan are some of our popular products. Besides, Sanima is catering to the needs of hundreds of small and medium enterprises (SMEs) as well. We have also recently introduced Sanima Gold Loan, a fast and easy loan facility against gold.

Consortium FinancingThis is another specialized lending activity of the Bank. The Bank has a history of engagement in con-sortium financing in the capacity as the Lead or Co-lead Bank. The Bank has proper monitoring mecha-nisms in place to enable prompt actions that ensure successful implementation and operation of projects under consortium financing.

Our Business

United Cement Pvt. Ltd, Naubise Dhading(A Clinkerisation Unit financed through consortium financing in which Sanima is one of the participating Banks)


Shivam Cement Pvt. Ltd, Hatiya-4, Makawanpur (Financed under consortium in which Sanima is one of the participating Banks)

Bhairabkunda small Hydropower Project, Sindhupalchowk(Hydropower Project of 3MW financed under consortium arrangement under the lead of Sanima)

Sanima Bank30

Sanima Criket Team

In House Training

Training/Development/Sports


Products and Services

Deposit Accountsn Sanima Sulav Savingsn Sanima Naari Savingsn Sanima Senior Citizens Savingsn Sanima Muna Savingsn Sanima Prime Savingsn Sanima Shareholders’ Savingsn Sanima Fixed Depositsn Sanima Commitment Saving

Loansn Sanima Home Loann Sanima Auto Loann Sanima Small Business Growth Loann Sanima Hire Purchase Loann Sanima Project Financingn Sanima Margin Lendingn Sanima Business Loann Sanima Education Loann Sanima Tractor Loann Micro Finance Loann Sanima Gold Loann Sanima Awasiya Ghaderi Karja

Ancillary Servicesn SMS Bankingn Sanima Debit Cardn Sanima iBankingn Sanima Safe Deposit Locker Facili-tiesn Utility Bill Paymentsn Remittancen Foreign Exchange Transactionsn Any Branch Banking Systemn Travelers Cheque

Sanima Bank32

DamakBranch Manager -Phanindra DahalMain Road, Ward No.13, Damak, Jhapa, Nepal Phone: 023-585161Fax: 023-585162

NewroadBranch Manager -Prakash Karki KhichaPokhari, New Road, Kathmandu, NepalPhone: 01-4233669,01-4233668 Fax: 01-4233673

DhadingbesiBranch Manager -Bishnu Lal ShresthaBich Bazar, Dhadingbesi, DhadingPhone: 010-520967Fax: 010-520968

KumaripatiBranch Manager -Bimal Bastola Kumaripati, LalitpurPhone: 01-5008597, 01-5008598Fax: 01-5008596

PokharaBranch Manager-Bhabuk Tandukar New Road, Pokhara, Kaski, NepalPhone: 061-525042Fax: 061-525043

NarayangarhBranch Manager -Dinesh GautamPulchowk, Narayangarh, Chitwan, NepalPhone: 056-571959, 571761Fax: 056-571968

SuryavinayakBranch Manager -Prabin JonchheSuryavinayak, Bhaktapur, NepalPhone: 01-6614515, 6619384Fax: 01-6619385

ChuchchepatiBranch Manager -Romila KoiralaChuchchepati, Kathmandu, NepalPhone: 01-4490041, 6222806Fax: 01-4499507

InaruwaBranch Manager-Bishal GhimireMain Road, Inaruwa, NepalPhone: 025-561747Fax: 025-561748

BelbariBranch Manager-Lal Babu Shah Main Road, Ward No. 2, Belbari, MorangPhone: 021-546082Fax: 021-545348

BhandaraBranch Manager -Dhal Bahadur KhadkaMain Road, Ward No. 1, Bhandara, ChitwanPhone: 056-550656Fax: 056-550657

GongabuBranch Manager -Kavindra PalGongabu, ward No- 4 'Ga' , KathmanduPhone: 01- 4389378, 4389388Fax: 4389520

ChapagaunBranch Manager-Samik Dhungana Chapagaun, ward No-4, LalitpurPhone: 01-5574216,5574561Fax: 5572184

KalankiBranch Manager -Satya KCKalanki, ward No-14, Kathmandu Phone: 01-4670771,4670772Fax: 4670773

MyanglungBranch Manager-Sanjay DewanBich Bazar, Myanglung-1, TerathumPhone: 026-460734Fax: 026-460735

NepalgunjBranch Manager -Ankit Khanal Dhamboji Chowk, Nepalgunj-1Phone: 081-521897Fax: 081-521898

KhadbariBranch Manager-Subash Rai Khandbari, SankhhuwasabhaPhone: 029-560986Fax: 029-560987

BiratnagarBranch Manager-Sudip Kumar Halwai HanumanDas Road Biratnagar-8Phone: 021-440991/92/93Fax: 021-440994

NaubiseBranch Manager-Lok Bahadur Timalsina Sim Bazaar, Naubise-7 DhadingPhone: 010-401014Fax: 010-401036

BirgunjBranch Manager-Narayan Prasad Khatiwada Link Road, Birgunj-10, ParsaPhone: 051-529185/86, 529405Fax: 051-529406

ButwalBranch Manager-Niraj Simkhada Amarpath, Butwal-8, Rupandehi Phone: 071-545497/98 Fax: 071-543747

Head Office“Alakapuri”, Naxal, Kathmandu G.P.O. Box: 20394 Phone: +977-1- 4428977, 4428979, 4428980 Fax: +977-1-4428969 SWIFT: SNMANPKA Email: [email protected]

ATM Available atHead Office Naubise Branch Myanglung Branch Chuchchepati Branch

Free withdrawals from over 1,100 ATMs and 1,341 POS terminals throughout the country in SCT Network by using Sanima Debit Card.

Sanima Debit Card can be used all over India in ATMs of Punjab Na-tional Bank.

Sanima’s footprints across the country

Sanima Bank34

Balance Sheet as on Ashad 31, 2069 (July 15, 2012)

Capital&Liabilities Schedule CurrentYearRs. PreviousYearRs.

1 Share Capital 4.1 2,016,000,000 2,016,000,000 2 Reserves and Funds 4.2 113,580,523 102,690,956 3 Debentures and Bonds 4.3 - - 4 Borrowings 4.4 88,250,000 658,000,000 5 DepositLiabilities 4.5 11,178,734,351 6,356,737,3796 Bills Payables 4.6 - - 7 ProposedandPayableDividend 110,880,000 131,040,0008 IncomeTaxLiabilities 9 OtherLiabilities 4.7 215,021,267 98,912,538

TotalCapitalLiabilities 13,722,466,141 9,363,380,873

Assets Schedule CurrentYearRs. PreviousYearRs.

1 CashBalance 4.8 256,197,727 147,095,6622 BalancewithNRB 4.9 1,005,249,544 326,975,2023 BalancewithBanks/FinancialInstitutions 4.10 111,615,471 52,235,7384 MoneyatCallandShortNotice 4.11 - 1,049,936,4495 Investments 4.12 2,105,770,255 916,983,0336 LoansAdvancesandBillsPurchase 4.13 9,531,504,834 6,371,323,9857 FixedAssets 4.14 479,044,422 361,072,4458 Non-Banking Assets 4.15 - - 9 OtherAssets 4.16 233,083,888 137,758,359

TotalAssets 13,722,466,141 9,363,380,873

ContingentLiabilities Schedule 4.17Directors’Declaration Schedule 4.29Statement of Capital Fund Schedule 4.30Statement of Risk Weighted Assets Schedule 4.30 (A)Principal Indicators Schedule 4.31PrincipleAccountingPolicies Schedule 4.32Notes to Accounts Schedule 4.33Statement of Loan taken by Promotors Schedule 4.34Comparision Between Unaudited and Audited Financials Schedule 4.35UnauditedFinancialHighlightscertifiedbyInternalAuditor Schedule 4(A)

Schedules 4.1 to 4.17, 4.32, 4.33, 4.34 & 4.35 form integral parts of the Balance Sheet.

Saroj Guragain Kumar Lamsal Jibanath Lamichhane HeadFinance&Treasury ChiefExecutiveOfficer Chairman

Binaya Kumar Shrestha Ram Krishna Shah Dr. Biswo Nath Poudel Director Director Director

Shamba Lama Mahesh Ghimire Bharat Kumar Pokhrel Director Director Director

Date : 05 October 2012 (19.06.2069) Place : Kathmandu

L.D. MahatPartnerCSC & Co.Chartered Accountants

As per our report of even date


PRofiTAndLoSSACCounTFor the period from July 17, 2011 to July 15, 2012 (Shrawan 01, 2068 to Ashad 31, 2069)

Particulars Schedules CurrentYearRs. PreviousYearRs.

1. InterestIncome 4.18 1,172,200,388 1,038,456,7152. InterestExpenses 4.19 753,616,780 683,000,393

netinterestincome 418,583,608 355,456,3223. Commission and Discount 4.20 11,251,196 4,949,150 4. OtherOperatingIncome 4.21 44,618,555 34,805,6485. ExchangeFluctuationIncome 4.22 - 157,502

Totaloperatingincome 474,453,359 395,368,6226. EmployeesExpenses 4.23 79,987,290 55,835,8967. OtherOverheadExpenses 4.24 151,863,729 84,325,4368. ExchangeFluctuationLoss 4.22 175,238 -

operatingProfitBeforeProvisionforPossibleLoss 242,427,102 255,207,2899. ProvisionforPossibleLosses 4.25 52,492,738 13,272,070

operatingProfit 189,934,364 241,935,21910. Non-operatingIncome/Expenses 4.26 678,396 347,65911. ProvisionWritten-Back 4.27 - 2,161,002

ProfitfromRegularoperations 190,612,760 244,443,88012. Profit/Lossfromextra-ordinaryactivities 4.28 - -

netProfitafterconsideringallactivities 190,612,760 244,443,88013. ProvisionForStaffBonus 17,328,433 22,222,17114. ProvisionForIncomeTax 51,514,761 67,001,354 ThisYear’s 51,892,481 67,105,214 PreviousYear’s 108,909 496,779 Deferred Tax Expense/(Income) (486,629) (600,639)

netProfit/(Loss) 121,769,566 155,220,355

Schedule No. 4.18 to 4.28, 4.32, 4.33, 4.34 & 4.35 form integral part of this Profit and Loss Account.







Sanima Bank36

CAShfLowSTATemenT For the period from July 17, 2011 to July 15, 2012 (Shrawan 01, 2068 to Ashad 31, 2069)

Particulars CurrentYearRs. PreviousYearRs.

(a) CashflowfromoperatingActivities 213,037,794 192,346,4641 CashReceived 1,211,429,053 1,051,551,9021.1 InterestIncome 1,151,904,711 1,009,621,5121.2 Commission and Discount Income 11,251,196 4,949,150 1.3 IncomefromForeignExchangeTransaction 2,976,194 1,827,9331.4 RecoveryofWritten-offLoans - -1.5 Other Incomes 45,296,951 35,153,306

2 CashPayment 998,391,259 859,205,4372.1 InterestExpenses 754,639,756 672,832,8502.2 StaffExpenses 75,868,189 54,539,6812.3 OfficeOverheadExpenses 110,487,169 64,766,4752.4 IncomeTaxPaid 57,396,145 67,066,4302.5 Other Expenses -

CashflowBeforeworkingCapitalActivities 1,093,002,228 (892,268,662) (increase)/decreaseofCurrentAssets (3,571,888,915) (1,512,251,066)1 (Increase)/DecreaseinMoneyatCallandShortNotice 1,049,936,449 (32,753,334)2 (Increase)/DecreaseinShort-termInvestments (1,341,761,852) (154,843,353)3 (Increase)/Decrease in Loans and Advances and Bills Purchase (3,205,101,454) (1,290,336,050)4 (Increase)/DecreaseinOtherAssets (74,962,057) (34,318,329)

increase/(decrease)ofCurrentLiabilities 4,664,891,143 619,982,4041 Increase/(Decrease)inDepositsLiabilities 4,821,996,971 596,242,0172 Increase/(Decrease)inCertificateofDeposits - -3 Increase/(Decrease)inShort-termBorrowings (121,750,000) 110,000,0004 Increase/(Decrease)inOtherLiabilities (35,355,829) (86,259,613)

(b) CashflowfrominvestmentActivities (8,132,450) (317,054,181)1 (Increase)/Decrease in Long-Term Investment 145,402,498.29 (266,200,000)2 (Increase)/DecreaseinFixedAssets (159,348,537.24) (55,128,351)3 InterestIncomeFromLong-TermInvestment 5,813,588.819 4,274,1714 Dividend Income - - 5 Others

(c) CashflowfromfinancingActivities (448,000,000) 1,316,515,8441 Increase/(Decrease) in Long-Term Borrowings (Bonds, Debentures etc.) - - 2 Increase/(Decrease) in Share Capital - 1,209,600,000 3 Increase/(Decrease)inOtherLiabilities(SharePremium) - 3,715,8444 Increase/(Decrease)inRefinance/FacilitiesFromNepalRastraBank (448,000,000) 103,200,000

(d) income/expensesfromchangeinexchangeRateinCashandBankBalances (3,151,432.59) (1,670,431)(e) ThisYear’sCashflowfromAllActivities 846,756,139 297,869,034(f) openingBalanceofCashandBankBalances 526,306,602 228,437,569(g) ClosingBalanceofCashandBankBalances 1,373,062,741 526,306,602








STAT

emen

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Particulars

ShareCapital

Accumulated

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Prop

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Capital

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otherReserve

Total

Profi

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TaxR

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OpeningBalanceas

2,016,000,000

10,629,661

69,598,577

-

-

10,563,747

1,800,753

18,218

-2,108,610,956

at17July2011

Adju

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RestatedBalanceas

2,016,000,000

20,709,661

69,598,577

-

-

10,563,747

1,800,753

18,218

-2,118,690,956

at17July2011

CurrentYear’sNetProfit

-

121,769,566

-

-

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-121,769,566

Gen

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-

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- ClosingBa

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2,016,000,000

6,203,685

93,952,490

-

-

10,563,747

1,800,753

504,847

555,0002,129,580,523

Sanima Bank38

PRofiTAndLoSSAPPRoPRiATionACCounTFor the period from July 17, 2011 to July 15, 2012 (Shrawan 01, 2068 to Ashad 31, 2069)

Particulars Schedule CurrentYearRs. PreviousYearRs.

income1 AccumulatedProfituptotheLastYear 20,709,661 27,591,5952 CurrentYear’sProfit 121,769,566 155,220,3553 ExchangeFluctuationFund - -

Total(A) 142,479,227 182,811,950

expenses1 Accumulated Loss up to the Last Year - - 2 This Year’s Loss - - 3 GeneralReserve 24,353,913 31,044,0714 ContingentReserve - -5 InstitutionalDevelopmentFund - -6 DividendEqualizationFund - -7 EmployeeRelatedReservesFunds - -8 Proposed Dividend 110,880,000 131,040,000 9 Proposed Issue of Bonus Shares - - 10 Special Reserve Fund - - 11 ExchangeFluctuationFund - -12 CapitalRedemptionReserveFund - -13 Capital Adjustment Fund - - 14 Deferred Tax Reserve 486,629 18,218 15 Investment Adjustment Reserve 555,000

Total(B) 136,275,542 162,102,289

15 AccumulatedProfit/(Loss)(A-B) 6,203,685 20,709,661








ShAReCAPiTALAndowneRShiPAs on July 15, 2012


1ShareCapital1.1 Authorized Capital 2,100,000,000 2,100,000,000 a) 21,000,000 Ordinary Shares of Rs. 100 each 2,100,000,000 2,100,000,000 b) …………. Non-redeemable Preference Shares of Rs. … each - - c) …………. Redeemable Preference Shares of Rs. ….. each - - 1.2 Issued Capital 2,016,000,000 2,016,000,000 a) 20,160,000 Ordinary Shares of Rs.100 each 2,016,000,000 2,016,000,000 b) …………. Non-redeemable Preference Shares of Rs. …. each - - c) …………. Redeemable Preference Shares of Rs. ……. each - - 1.3 Paid up Capital 2,016,000,000 2,016,000,000 a) 20,160,000 Ordinary Shares of Rs.100 each 2,016,000,000 2,016,000,000 b) …………. Non-redeemable Preference Shares of Rs. …. each - - c) …………. Redeemable Preference Shares of Rs. ……… each 1.4 Proposed Bonus Share - - 1.5 Calls in Advance - -

1.6 Total(1.3+1.4+1.5) 2,016,000,000 2,016,000,000

Schedule 4.1

Particulars ThisYear PreviousYear

Percent ShareCapitalRs. ShareCapitalRs. Percent

1 nationalownership 100 2,016,000,000 2,016,000,0001.1 Government of Nepal - - 1.2 ForeignInstitutions - -1.3 “A”ClassLicensedInstitutions - -1.4 OtherLicenseInstitutions - -1.5 OtherEntities/Organizations 4.78 96,457,500 45,400,000 2.251.7 Individuals 95.22 1,919,542,500 1,970,600,000 97.751.6 Others - -

2 foreignownership - - - -

Total 100 2,016,000,000 2,016,000,000 100

S.n. nameoftheShareholders no.ofShares Percentage AmountRs.

1 Mr. ARUN KUMAR OJHA 2,822,400 14.00 282,240,000 2 Mr.TEKRAJNIRAULA 1735400.0 8.61 173,540,0003 Mr. JIBANATH LAMICHHANE 1,260,000 6.25 126,000,000 4 Dr. NIRAJ GOBINDA SHRESTHA 1,260,000 6.25 126,000,000 5 Mr. BINAY KUMAR SHRESTHA 1,013,000 5.02 101,300,000 6 Mr.GHANASHYAMTHAPA 941,700 4.67 94,170,0007 Dr.BIRENDRAPRASADMAHATO 945,000 4.69 94,500,0008 Mr,KHEMRAJLAMICHHANE 794,000 3.94 79,400,0009 M/sJAIGANESHINVESTMENTCOMPANYPVT.LTD. 756,000 3.75 75,600,00010 Mr. RAM KRISHNA SHAH 633,000 3.14 63,300,000 11 Mr. DINESHMANI SHRESTHA 394,900 1.96 39,490,000 12 Mr,DILIPSHRESTHA 327,600 1.63 32,760,00013 Mrs.INDIRABHANDARI 176,400 0.88 17,640,00014 Mr.SAMBALAMA 146,790 0.73 14,679,000

ToTAL 13,206,190 65.5 1,320,619,000

LiSTofShARehoLdeR’ShoLding0.5PeRCenToRmoReofPAiduPShAReCAPiTAL

ShAReowneRShiPAs on July 15, 2012

Sanima Bank40

Schedule 4.2

ReSeRveAndSuRPLuSAs on July 15, 2012


1 GeneralReserveFund 93,952,490 69,598,5772 Capital Reserve Fund - - 3 CapitalRedemptionReserve - -4 Capital Adjustment Fund - - 5 Other Resevers - 5.1 ContingentReserve - - 5.2 InstitutionDevelopmentFund - - 5.3 DividendEqualizationFund - - 5.4 Special Reserve Fund - - 5.5 AssetsRevaluationReserve - - 5.6 DeferredTaxReserve 504,847 18,218 5.7 OtherFreeReserves - - 5.8 Other Reserve Funds - - 5.9 SharePremium 10,563,747 10,563,747 5.10 Investment Adjustment Reserve 555,000 6 AccumulatedProfit/(Loss) 6,203,685 20,709,6617 ExchangeEqualizationFund 1,800,753 1,800,753

Total 113,580,523 102,690,956

Schedule 4.3

deBenTuReSAndBondSAs on July 15, 2012


1 ……………. Percent Bonds/Debentures of Rs. ………… each - - Issued on …………… and Matured on ………….. - - (OutstandingbalanceofRedemptionReserveRs.…………….) - -2 ……………. Percent Bond/Debentures of Rs. ………… each - - Issued on …………… and Matured on ………….. - - (OutstandingBalanceofRedemptionReserveRs.…………….) - -3 ……………… - -

Total(1+2+3) - -

Note : Particulars of securities shall be disclosed in case the Debentures/Bonds are issued with assigned securities.


dePoSiTSAs on July 15, 2012

BoRRowingSAs on July 15, 2012


A. Local 1 Nepal Government - - 2 Nepal Rastra Bank - 448,000,000 3 RepoObligation - 210,000,000 4 InterBankandFinancialInstitutions 88,250,000 - 5 OtherOrganizedInstitutions - - 6 Others - -

Total 88,250,000 658,000,000

B. foreign - - 1 Banks - - 2 Others - - Total - -

Total(A+B) 88,250,000 658,000,000


1 non-interestBearingAccounts

A. Currentdeposits 372,586,294 131,256,263 1. Local Currency 371,939,132 130,766,725 1.1 NepalGovernment 938,912 71,000 1.2 “A”ClassLicensedInstitutions 7,210,687 2,842,133 1.3 OtherLicensedFinancialInstitutions 141,477,180 1,066,532 1.4 OtherOrganizedInstitutions 184,983,527 105,444,288 1.5 Individuals 37,328,825 21,342,773 1.6 Others 2. Foreign Currency 647,163 489,538 2.1 Nepal Government - - 2.2 “A”ClassLicensedInstitutions - - 2.3 OtherLicensedFinancialInstitutions - - 2.4 OtherOrganizedInstitutions 638,338 2.5 Individuals 8,825 489,538 2.6 Others - -

B. margindeposits 21,925,312 9,856,767 1 Employee Guarantees - - 2 GuaranteeMargin 15,393,312 9,856,767 3 LettersofCreditMargin 6,532,000 -

C. others 1. Local Currency - - 1.1 FinancialInstitutions - - 1.2 OtherOrganizedInstitutions - - 1.3 Individuals - -

Schedule 4.4

Schedule 4.5

Sanima Bank42

2. Foreign Currency - - 2.1 FinancialInstitutions - - 2.2 OtherOrganizedInstitutions - - 2.3 Individuals - -

Totalofnon-interestBearingAccounts 394,511,606 141,113,030

2 interestBearingAccounts - -

A. Savingsdeposits 3,554,886,958 2,670,383,929 1. Local Currency 3,534,372,302 2,653,178,015 1.1 OrganizedInstitutions 3,453,390 541,427 1.2 Individuals 3,530,918,913 2,652,636,588 1.3 Others - - 2. Foreign Currency 20,514,656 17,205,914 2.1 OrganizedInstitutions 2.2 Individuals 20,514,656 17,205,914 2.3 Others - -

B. fixeddeposits 5,453,987,975 2,692,287,297 1. Local Currency 5,425,571,475 2,644,084,897 1.1 OrganizedInstitutions 2,974,218,003 1,137,958,918 1.2 Individuals 2,451,353,472 1,506,125,979 1.3 Others - - 2. Foreign Currency 28,416,500 48,202,400 2.1 OrganizedInstitutions 2.2 Individuals 28,416,500 48,202,400 2.3 Others - -

C. Calldeposits 1,775,347,811 852,953,124 1 Local Currency 1,772,659,089 849,904,347 1.1 “A”ClassLicensedInstitutions - 18,242 1.2 OtherLicensedInstitutions 560,184,361 329,974,309 1.3 OtherOrganizedInstitutions 987,125,217 438,416,703 1.4 Individuals 225,349,511 81,495,093 1.5 Others - - 2. Foreign Currency 2,688,722 3,048,778 2.1 “A”ClassLicensedInstitutions - - 2.2 OtherLicensedInstitutions - - 2.3 OtherOrganizedInstitutions 2,688,722 3,048,778 2.4 Individuals - 2.5 Others - -

d. Certificateofdeposit - - 1 OrganizedInstitutions - - 2 Individuals - - 3 Others - -

TotalofinterestBearingAccounts 10,784,222,744 6,215,624,349

Totaldeposit(1+2) 11,178,734,351 6,356,737,379


BiLLSPAYABLe As on July 15, 2012


1 Local Currency - - 2 Foreign Currency - -

Total - -

oTheRLiABiLiTieS As on July 15, 2012


1 Pension/GratuityFund 8,015,720 3,896,6192 EmployeesProvidentFund 81,723 -3 Employees Welfare Fund - -4 ProvisionforStaffBonus 17,328,433 22,222,1715 InterestPayableonDeposits 14,464,799 3,627,5866 InterestPayableonBorrowings 473,646 12,333,8357 UnearnedDiscountandCommission 719,262 954,6838 SundryCreditors 18,369,806 6,372,5369 Branch Adjustment Account - - 10 Deferred Tax Liability - 11 DividendPayable 8,893,890 3,237,68512 OtherMiscellaneous 146,673,988 46,267,422

Total 215,021,267 98,912,538

caSh Balance As on July 15, 2012


1 LocalCurrency(includingcoin) 253,384,888 143,715,685

2 ForeignCurrency 2,812,840 3,379,977

Total 256,197,727 147,095,662

Schedule 4.6

Schedule 4.7

Schedule 4.8

Sanima Bank44

Schedule 4.11

moneYATCALLAndShoRTnoTiCe As on July 15, 2012


1 LocalCurrency - 1,030,465,4772 ForeignCurrency - 19,470,972

Total - 1,049,936,449

BALAnCewiThnePALRASTRABAnk As on July 15, 2012

Particulars Local foreignCurrency CurrentYear Previous Currency indianCurrency Convertible Total TotalRs. YearRs.

1 nepalRastraBank 1,002,323,227 - 2,926,3162,926,316 1,005,249,544 326,975,202 a) CurrentAccount 1,002,323,227 - 2,926,3162,926,316 1,005,249,544 326,975,202 b) Other Account - - - - - -

Schedule 4.9

BALAnCewiThBAnkS/finAnCiALinSTiTuTionSAs on July 15, 2012

Particulars Local foreignCurrency CurrentYear Previous Currency indianCurrency Convertible Total grandTotalRs. YearRs.

1 LocalLicensedInstitutions 86,155,640 - 660,167 660,167 86,815,807 35,438,870 a) CurrentAccount 86,155,640 - - - 86,155,640 35,438,870 b) OtherAccount - - 660,167 660,167 660,167 -2 ForeignBanks - (18,836,158) 43,635,821 24,799,663 24,799,663 16,796,867 a) CurrentAccount - (18,836,158) 43,635,821 24,799,663 24,799,663 16,796,867 b) Other Account - - - - - -

Total 86,155,640 (18,836,158) 44,295,989 25,459,831 111,615,471 52,235,738

Schedule 4.10

Note: Total Balance for which the confirmations are received from the respective licensed institutions is Rs. 144,747,448 and the difference are subsequently reconciled.


inveSTmenTS As on July 15, 2012

Particulars Purpose Current Previous Tradingother YearRs. YearRs.

1 Nepal Government Treasury Bills 1,910,564,945 1,910,564,945 612,928,092 2 Nepal Government Savings Bond - - 3 NepalGovernmentOtherSecurities - 96,500,310 96,500,310 58,354,9404 Nepal Rastra Bank Bonds - - - - 5 ForeignSecurities - - - -6 LocalLicensedInstitutions - 7,572,132 7,572,132 210,000,0007 ForeignBanks - 88,250,000 88,250,000 35,600,0008 OriganizedInsrtitutionsShares - 10,455,000 10,455,000 100,0009 Corporate Bonds and Debentures - - - - 10 Other Investments - - - -

Total Investment - 2,113,342,387 2,113,342,387 916,983,033

Provision - 7,572,132 7,572,132 -

netinvestment - 2,105,770,255 2,105,770,255 916,983,033

Schedule 4.12 (A)

inveSTmenTinShAReS,deBenTuReSAndBondS As on July 15, 2012

Particulars CostPrice marketPrice Provision CurrentYearRs. PreviousYearRs.

1 investmentinShares 10,455,000 - - 10,455,000 100,000 1.1 Nepal Clearing House Company Ltd. - - - 1000 Ordinary Shares of Rs 100 Paid up 100,000 - - 100,000 100,000 1.2 Sanima Mai Hydro Ltd. - - - - - 100,000 Ordinary Shares of Rs. 100 Paid up. 10,000,000 - - 10,000,000 - 1.3 Sanima Life Insurance Co. Ltd. 350,000 Ordinary Shares of Rs. 1 Paid up 350,000 350,000 - (Face Value Rs100 each). 1.4 SanimaFoundation - - - 5000 Ordinary Shares of Rs. 1 Paid up 5,000 - - 5,000 - (Face value Rs 100 each).

2 investmentindebenturesandBonds - - - 2.1 …….. Co. (Pvt. Ltd./Ltd.) - - - …….. % ……… Debentures/Bonds of Rs. ……. each - - - 2.2 ……… - - - 2.3 ………. - - -

Totalinvestment(1+2) 10,455,000 - - 10,455,000 100,0003 Provision For Loss - - - 3.1 Provision Up To Previous Year - - - 3.2 AdditionsThisYear - - -

Total Provision - - -

netinvestment 10,455,000 - - 10,455,000 100,000

Schedule 4.12

Note : Above companies have not declared the dividend in last three years.

Sanima Bank46

heLdfoRTRAdingAs on July 15, 2012

description Cost Lastmarket Current CurrentYear LastYear Remarks Price Price marketPrice Profit/(Loss) Profit/(Loss)

1 Treasury Bills Of Governement Of Nepal - - - - - 2 Saving Bonds Of Government Of Nepal - - - - - 3 Other Loan Bonds Of Government Of Nepal - - - - - 4 Loan Bonds Of Nepal Rastra Bank - - - - - 5 Foreign Loan Bonds - - - - - 7 DebentureAndBondsOfLocalLicensedInstitutions - - -8 DebentureAndBondsOfLocalOrganizedInstitutions - - - - -9 Investment In Foreign Banks (Placement) - - - - - 10 Interbank Lending - - - - - 11 Other Investment - - - - -

Totalinvestment - - - - -

Schedule 4.12.1

heLdTomATuRiTY As on July 15, 2012

description Cost Lastmarket Current CurrentYear LastYear Remarks PriceRs. Price marketPrice Profit/(Loss) Profit/(Loss)

1. Treasury Bills of Governement of Nepal 1,910,564,945 - - - - 2. Saving Bonds of Government of Nepal - - - - - 3. Other Loan Bonds of Government of Nepal 96,500,310 - - - - 4. Loan Bonds of Nepal Rastra Bank - - - - - 5. Foreign Loan Bonds - - - - - 6. SharesofLocalLicensedInstitutions - - - - -7. DebentureandBondsofLocal - - - - - LicensedInstitutions8. Debenture and Bonds of Local - - - - - OrganizedInstitutions9. Investment in Foreign Banks (Placement) 88,250,000 - - - - 11. Other Investment - - - - -

Totalinvestment 2,095,315,255 - - - -

Schedule 4.12.2


AvAiLABLefoRSALeAs on July 15, 2012

description Cost Lastmarket Current CurrentYear LastYear Remarks PriceRs. Price marketPrice fund Profit/(Loss) Adjustment Amount

1 Treasury Bills Of Governement Of Nepal - - - - - 2 Saving Bonds Of Government Of Nepal - - - - - 3 Other Loan Bonds Of Government Of Nepal - - - - - 4 Loan Bonds Of Nepal Rastra Bank - - - - - 5 Foreign Loan Bonds - - - - - 6 SharesOfLocalLicensedInstitutions - - - - -7 DebentureAndBondsOfLocal - - - - - LicensedInstitutions8 Debenture And Bonds Of Local - - - - - OrganizedInstitutions9 Investment In Foreign Banks (Placement) - - - - - 10. OtherInvestments 18,027,132 - - 555,000 -

10.otherinvestments 18,027,132 - - 555,000 -

Schedule 4.12.3

Sanima Bank48

CLASS

ifiCAT

ionofLo

AnSAndBiLLSPuRC

hASe

dAndPRo

viSionin

gAs

on

July

15,

201

2 Sc

hedu

le 4

.13

Particulars

foreign

Total

domestic

fo

reign

Total

Curren

tYea

rRs.

PreviousYea

rRs.

others

insured

uninsured

1Pe

rformingLoan

-

170

,393

,087

9,423

,476

,083

-

9,593

,869

,169

1,279

,914

-1,27

9,91

4

9,595

,149

,083

6,435

,897

,845

1.1

PassLoa

n-

170

,393

,087

9,423

,476

,083

-

9,593

,869

,169

1,279

,914

-1,27

9,91

4

9,595

,149

,083

6,435

,897

,845

2

Non

-Perform

ingLoan

-

287

,149

45,85

0,21

7

-

46,13

7,36

6

-

-

-

46,13

7,36

6

287

,149

2.1

Rest

ruct

ured

/Res

ched

uled

2.2

Substand

ard

-

-

42,79

2,01

0

-

42,79

2,01

0

-

-

-

42,79

2,01

0

-

2.3

Dou

btful

-

-

1,858

,207

-

1,858

,207

-

-

-

1,858

,207

-

2.4

Bad

-

287

,149

1,200

,000

-

1,487

,149

-

-

-

1,487

,149

287

,149

(A)

TotalLoa

n-

170

,680

,236

9,469

,326

,299

-

9,640

,006

,535

1,279

,914

-

-

9,641

,286

,449

6,436

,184

,995

3

Loan

LossProvision

-

1,991

,080

107

,777

,736

-

109

,768

,816

12,79

9

-

12,79

9

109

,781

,615

64,86

1,01

0

3.1

Pass

-

1,703

,931

94,95

0,63

0

-

96,65

4,56

1

12,79

9

-

12,79

9

96,66

7,36

0

64,57

3,86

0

3.2

Rest

ruct

ured

-

-

-

-

-

-

-

-

-

-

3.3

Subs

tand

ard

-

-

10,

698,

003

-

1

0,69

8,00

3

-

-

-

10,

698,

003

-

3.4

Dou

btful

-

-

929

,103

-

929

,103

-

-

-

929

,103

-

3.5

Bad

-

287

,149

1,200

,000

-

1,487

,149

-

-

-

1,487

,149

287

,149

(B)

TotalP

rovision

ing

-

1,991

,080

107

,777

,736

-

109

,768

,816

12,79

9

-

12,79

9

109

,781

,615

64,86

1,01

04

Provisioning

uptoPreviou

sYear

-

1,867

,275

62,99

3,73

5

-

64,86

1,01

0

-

-

-

64,86

1,01

0

53,74

9,94

1

4.1

Pass

-

1,580

,126

62,99

3,73

5

-

64,57

3,86

1

-

-

-

64,57

3,86

1

51,41

4,90

1

4.2

Rest

ruct

ured

-

-

-

-

-

-

-

-

-

-

4.3

Substand

ard

-

-

-

-

-

-

-

-

-

179

,509

4.4

Dou

btful

-

-

-

-

-

-

-

-

-

1,485

,274

4.5

Bad

-

287

,149

-

-

287

,149

-

-

-

287

,149

670

,257

(C)

TotalP

reviou

sYea

r’sProvision

-

1,867

,275

62,99

3,73

5

-

64,86

1,01

0

-

-

-

64,86

1,01

0

53,74

9,94

1

(d)

writt

enBackfrom

Previou

sYear

-

-

-

-

-

-

-

-

-

2,161

,002

(e)

ThisYea

rAdd

ition

alLoa

n-

--

--

--

--

2,16

1,00

2

Chan

gesinThisYear

-

123

,805

44,78

4,00

1

-

44,90

7,80

6

12,79

9

-

12,79

9

44,92

0,60

5

11,11

1,06

8

netLoa

n(A-B)

-

168

,689

,156

9,361

,548

,563

-

9,530

,237

,719

1,267

,115

-1,26

7,11

5

9,531

,504

,834

6,371

,323

,985

BillsPurchased

/discoun

tedRs.

domestic

deprived

Loan

s


LoAnS,AdvAnCeSAndBiLLSPuRChASedSeCuRiTYwiSeAs on July 15, 2012


(A)Secured 9,641,286,449 6,436,184,9961 Movable/ImmovableAssets 9,149,848,382 6,015,637,6892 GuaranteeofLocalLicensedInstitutions - -3 Government Guarantee 4 InternationallyRatedBankGuarantee 5 Export Documents 6 Fixed Deposit Receipts - - a)OwnFixedDepositReceipt 90,168,267 136,809,278 b)FixedDepositReceiptofOtherLicensedInstitutions - -7 GovernmentBonds 2,790,138 -8 Counter Guarantee - - 9 PersonalGuarantee 4,770,152 3,309,30910 OtherSecurities 393,709,510 280,428,719

B. unsecured - -

Total 9,641,286,449 6,436,184,995

Schedule 4.13(A)

fixedASSeTSAs on July 15, 2012

Particulars Current Previous Land& vehicles machinery office others YearRs. YearRs. Building equipment

1 AtCost - - - - - - - a. PreviousYearBalance - 37,777,356 13,899,453 65,660,832 -117,337,641 90,365,037 b. AdditionThisYear 136,316,886 11,267,600 10,660,251 66,854,743 -225,099,480 26,616,909 c. Revaluation/Written - - - - - - - Back This Year d. This Year Sold - (1,650,000) - - (1,650,000) 355,694 e. ThisYearWrittenoff - - -(3,145,249) - (3,145,249) -

TotalCost(a+b+c-d-e) 136,316,886 47,394,956 24,559,704129,370,325 -337,641,872 117,337,6412 depreciation - - - - - - - a. UptoPreviousYear - 12,771,149 4,050,705 23,402,515 - 40,224,369 25,555,430b. ForThisYear 3,654,823 6,099,065 2,302,305 17,871,777 - 29,927,969 14,937,117c. DepreciationonRevaluation/ - - - - - - (268,178) WrittenBackd. DepreciationAdjustment/Reversal - (479,600) - (2,263,246) - (2,742,846) -

Totaldepreciation 3,654,823 18,390,614 6,353,010 39,011,045 - 67,409,491 40,224,3693 Bookvalue(wdv*)(1-2) 132,662,064 29,004,342 18,206,694 90,359,280 -270,232,381 77,113,272 4 Land 171,600,000 - - - -171,600,000 171,600,0005 CapitalizationConstruction - - - - - - 72,154,434 (PendingCapitalization)6 LeaseholdAssets - - - -37,212,042 37,212,042 40,204,739

Total(3+4+5+6) 304,262,064 29,004,342 18,206,694 90,359,280 37,212,042479,044,422.18361,072,445

Schedule 4.14

AssetsRs.

* Written Down Value

Sanima Bank50

non-BAnkingASSeTSAs on July 15, 2012

nameand dateofAccept TotalAmountof netnon-Banking Previous Addressof non-Banking non-Banking in in AssetsCurrent YearRs. BorrowerorParty Assets AssetsRs. Percentage Amount YearRs.

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

grandTotal - - - - - -

Schedule 4.15

LossProvision


1 StationeryStock 2,349,815 1,611,3182 IncomeReceivableonInvestments 24,970,060 18,818,6243 AccruedInterestonLoan 30,620,667 22,290,014 Less:InterestSuspenseAmount (30,620,667) - (22,290,014)4 Commission Receivable - - 5 SundryDebtors 172,387 20,2886 StaffLoansandAdvances 68,188,886 43,545,5747 PrepaidExpenses 3,654,376 3,292,4798 Cash in Transit - - 9 Other Transit items ( including cheques ) - - 10 DraftsPaidwithoutNotice - -11 ExpensesNotWrittenoff 9,988,573 4,578,45812 Branch account - - 13 DeferredTaxAssets 504,847 18,21814 Other 123,254,944 65,873,400

Total 233,083,888 137,758,359

Schedule 4.16

oTheRASSeTSAs on July 15, 2012

netnon-BankingAssetsRs.


oTheRASSeTS(AddiTionALinfoRmATion)As on July 15, 2012

Particulars CurrentYear PreviousYear

upTo1Year 1To3Years moreThan3Years Rs. Rs.

1 AccruedInterestonLoan 30,620,667 - - 30,620,667 22,290,0142 DraftsPaidwithoutNotice - - - - -3 Branch Adjustment Account - - - - - 4 LocalandForeignAgencyA/Cs 35,317,123 61,758 - 35,378,881 15,964,764

Schedule 4.16 (A)

ThisYear

ConTingenTLiABiLiTieSAs on July 15, 2012


1 ClaimsonInstitutionbutnotacceptedbytheInstitution - -2 LettersofCredit(FullAmount) - - a) Lessthan6monthsMaturity 98,579,305 - b) More than 6 months Maturity - - 3 Rediscounted Bills - - 4 Unmatured Guarantees/Bonds - a) BidBonds 73,885,550 19,978,941 b) PerformanceBonds 263,201,647 185,311,308 c) Other Guarantees/Bonds - - 5 Unpaid Shares in Investment - - 6 ForwardExchangeContractLiabilities - -7 BillsunderCollection - -8 Acceptance and Endorsements - - 9 UnderwritingCommitments - -10 IrrevocableLoanCommitments 578,300,721 382,906,75111 CounterGuaranteeofInternationallyRatedBanks - -12 Advance Payment Guarantee 82,860,080 33,862,254 13 Financial Guarantee - 14 ContingentLiabilitiesonIncomeTax - -15 CapitalCommitmentnetofAdvancePayment - 74,575,832

Total 1,096,827,303 696,635,086

Schedule 4.17

Sanima Bank52

inTeReSTinComeFor the period from July 17, 2011 to July 15, 2012 (Shrawan 01, 2068 to Ashad 31, 2069)


A. onLoan,Advancesandoverdraft 1,067,152,948 851,756,164 1 LoansandAdvances 769,618,105 640,652,837 2 Overdraft 297,534,843 211,103,328

B oninvestment 73,251,319 67,098,396 1 NepalGovernmentSecurities 59,436,999 41,726,323 a. TreasuryBills 54,049,360 37,452,152 b. DevelopmentBonds 5,387,639 4,274,171 c. NationalSavingsCertificates - - 2 ForeignSecurities - - a. ……….. - - b. ………. - - 3 Nepal Rastra Bank Bond - - 4 Debenture and Bonds - - a. FinancialInstitutions - - b. OtherOrganizations - - 5 OnInterbankPlacement 13,814,320 25,372,073 a. BankandFinancialInstitutions 13,814,320 25,372,073 b. OtherOrganizations - -

C onAgencyBalances - - 1 Local Banks - - 2 Foreign Banks - -

d onmoneyatCallandShortnotice 31,796,121 119,602,155 1 LocalBanks/FinancialInstitutions 31,796,121 119,602,155 2 Foreign Banks - -

e onothers - - 1 CertificateofDeposits - - 2 Inter-Bank Loan - - 3 Others - -

Total 1,172,200,388 1,038,456,715

Schedule 4.18


CommiSSionAnddiSCounTFor the period from July 17, 2011 to July 15, 2012 (Shrawan 01, 2068 to Ashad 31, 2069)


A BillsPurchaseanddiscount - - 1 Local - - 2 Foreign - -

B Commission 8,678,754 3,585,679 1 LettersofCredit 108,747 - 2 Guarantee 5,723,887 2,481,792 3 CollectionFee - 4 RemittanceFee 2,834,293 996,853 5 Credit Cards - - 6 ShareUnderwriting/Issues - 107,035 7 GovernmentTransactions 11,827 - 8 Agency Commission - - 9 Exchange Income - -

C others 2,572,443 1,363,471

- -

Total 11,251,196 4,949,150

Schedule 4.20

inTeReSTexPenSeSFor the period from July 17, 2011 to July 15, 2012 (Shrawan 01, 2068 to Ashad 31, 2069)


A. ondepositLiabilities 747,968,445 619,667,017 1 FixedDeposits 415,282,294 332,526,779 1.1 Local Currency 414,425,324 331,929,025 1.2ForeignCurrency 856,970 597,754 2 SavingsDeposits 241,999,668 217,803,107 2.1LocalCurrency 241,798,528 217,193,480 2.2ForeignCurrency 201,139 609,627 3 CallDeposits 90,686,483 69,337,131 3.1 Local Currency 90,658,912 69,035,916 3.2ForeignCurrency 27,571 301,215 4 CertificateofDeposits - -

B onBorrowings 5,593,073 63,333,376 1 Debentures and Bonds - - 2 LoanfromNepalRastraBank - 48,297,989.38 3 InterBank/FinancialInstitutionsBorrowing 5,593,073 15,035,387 4 Other Corporate Body - - 5 Other Loans - -

C onothers 55,262 - 1 Bond Premium w/o 55,262 - 2 ………………. - -

Total 753,616,780 683,000,393

Schedule 4.19

Sanima Bank54

Schedule 4.21

oTheRoPeRATinginComeFor the period from July 17, 2011 to July 15, 2012 (Shrawan 01, 2068 to Ashad 31, 2069)


1 Rental on Safe Deposit Lockers 551,600 384,500 2 Issue and Renewals of Credit Cards - - 3 IssueandRenewalsofATMCards 999,345 497,3254 Telex/T.T. 271,443 134,8655 ServiceCharges 35,584,610 27,310,2296 RenewalFees 944,235 1,398,7637 Others 6,267,323 5,079,966

Total 44,618,555 34,805,648

Schedule 4.22

exChAngegAin/LoSS For the period from July 17, 2011 to July 15, 2012 (Shrawan 01, 2068 to Ashad 31, 2069)


(A) RevaluationGain (3,151,433) (1,670,431)(B) TradingGain(ExceptExchangeIncome) 2,976,194 1,827,933

Totalincome/(Loss) (175,238) 157,502

Schedule 4.23

emPLoYeeexPenSeS For the period from July 17, 2011 to July 15, 2012 (Shrawan 01, 2068 to Ashad 31, 2069)


1 Salary 38,866,650 28,751,3362 Allowances 21,032,407 15,450,7233 ContributiontoProvidentFund 3,472,675 2,679,3694 TrainingExpenses 396,270 238,5035 Uniform - 642,293 6 Medical - - 7 Insurance 660,480 487,5498 Pension and Gratuity Provision 4,132,836 1,296,215 9 Others 11,425,972 6,289,908

Total 79,987,290 55,835,896


Schedule 4.24

oTheRoveRheAdexPenSeSFor the period from July 17, 2011 to July 15, 2012 (Shrawan 01, 2068 to Ashad 31, 2069)


1 HouseRent 12,027,150 10,805,9522 ElectricityandWater 3,769,853 2,506,5343 RepairandMaintenance 991,401 817,901 (a) Building 45,608 72,534 (b) Vehicles 659,887 443,015 (c) Others(Software) 285,906 302,3524 Insurance 6,424,670 2,335,3795 Postage,Telex,Telephone,Fax 9,829,678 6,127,1976 OfficeEquipment,FurnitureandFixtureRepair 1,794,346 1,196,7937 TravelingAllowancesandExpenses 1,302,083 1,179,9328 StationeryandPrinting 3,893,275 2,613,5109 PeriodicalsandBooks 137,371 110,07410 Advertisements 23,222,588 8,270,93911 LegalExpenses 96,000 95,82712 Donations 208,713 53,30013 ExpensesRelatingtoBoardofDirectors 1,100,086 1,016,275 (a) MeetingFees 714,000 695,000 (b) OtherExpenses 386,086 321,27514 AnnualGeneralMeetingExpenses 411,653 422,63215 ExpensesRelatingtoAudit 472,242 513,537 (a) AuditFees 375,000 375,000 (b) OtherExpenses 97,242 138,53716 CommissiononRemittances 7,500 -17 DepreciationonFixedAssets 36,621,811 19,558,96118 AmortizationofPreliminaryExpenses - -19 Share Issue Expenses - 1,889,515 20 Technical Services Fee - - 21 Entertainment 2,100,853 1,473,32622 WrittenOffExpenses 4,754,749 -23 SecurityExpenses 12,850,162 7,738,28524 Credit Guarantee Premium - - 25 Commission and Discount - - 26 Others 29,847,544 15,599,569 26.1 OfficeMaintenance 635,675 325,579 26.2 VehicleFuel&Tax 7,854,286 4,764,595 26.3 MembershipFee 1,710,418 673,807 26.4 BusinessPromotionExpense 10,478,103 3,914,906 26.5 HumanResourceOutsourcing 5,630,919 3,313,725 26.6 CIBLExpenses 1,671,195 1,274,894 26.7 OfficeEquipmentUncapitalised 142,175 162,199 26.8 Miscelleneous 1,724,774 1,169,864

Total 151,863,729 84,325,436

Sanima Bank56

PRoviSionfoRPoSSiBLeLoSSeSFor the period from July 17, 2011 to July 15, 2012 (Shrawan 01, 2068 to Ashad 31, 2069)


1 IncreaseinLoanLossProvision 44,920,605 13,272,0702 IncreaseinProvisonforLossonInvestment 7,572,132 -3 Provision Against Non-Banking Assets - - 4 Provision Against Other Assets - -

Total 52,492,738 13,272,070

Schedule 4.25

non-oPeRATinginCome/LoSSFor the period from July 17, 2011 to July 15, 2012 (Shrawan 01, 2068 to Ashad 31, 2069)


1 Profit(Loss)OnSaleOfInvestment - - 2 Profit(Loss)OnSaleOfAssets - - 3 Dividend - - 4 Subsidies Received From Nepal Ratra Bank - - a)ReimbursementOfLossesOfSpecifiedBranches - - b) Interest Subsidy - - c) Exchange Counter - - 5 Others 678,396 347,659

Totalnon-operatingincome(Loss) 678,396 347,659

Schedule 4.26

LoSSPRoviSionSwRiTTenBACkFor the period from July 17, 2011 to July 15, 2012 (Shrawan 01, 2068 to Ashad 31, 2069)

Particulars ThisYearRs. PreviousYearRs.

1 LoanLossProvisionWrittenBack - 2,161,0022 ProvisionagainstNon-BankingAssetsWrittenBack - -3 InvestmentProvisionWrittenBack - -4 ProvisionagainstOtherAssetsWrittenback - -

Total - 2,161,002

Schedule 4.27

inCome/exPenSeSfRomexTRA-oRdinARYACTiviTieSFor the period from July 17, 2011 to July 15, 2012 (Shrawan 01, 2068 to Ashad 31, 2069)


1 RecoveryOfLoansWrittenOff - - 2 VoluntaryRetirementSchemeExpenses - - 3 LoansWriten-Off[4.28(a)] - - 4 Other Expenses/Income - -

Total - -

Schedule 4.28


Schedule 4.28 (A)

STATemenTofLoAnSwRiTTen-offFor the period from July 17, 2011 to July 15, 2012 (Shrawan 01, 2068 to Ashad 31, 2069)

S.n. TypesofLoan writtenoff Typeof Basisof LoanApproved initiation Remarks Amount Security valuationof Byname/ madefor Collateral designation Recovery

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

TotalLoan - - - - - -

Note : Particulars of loan written off during the fiscal year shall be mentioned in above.

Note: All Above loans are against Fixed Deposit maintained with the Bank.

STATemenTofLoAnSAndAdvAnCeSexTendedTodiReCToRS/ChiefexeCuTive/PRomoTeR/emPLoYeeSAndShARehoLdeRSAs on July 15, 2012

nameofPromoter/director TillLastYear’sBalanceRs. CurrentYearRecovery CurrentYear BalanceAsofAshadendRs./Chiefexecutiveofficer/ Principal interest Principal interest AdditionsRs. Principal interest employeesAndShareholders

(A) Directors - - - - - - - 1ArunKumarOjha 17,802,016 - 17,802,016 - - - - - - - - - - - (B) ChiefExecutive - - - - - - - 1 - - - - - - - - - - - - - - (C) Promoters - - - - - - - - - - - - 1.TukPrasadPoudyal 970,000 - 400,000 - - 570,000 - - - - - - (D) Employees - - - - - - - 1 Rudra Prasad Banjara 1,100,000 - 600,000 - - 500,000 - 2. Tej Bhadur Chand - 988,180 988,180 - 3KumariBharati 300,000 - 100,000 - - 200,000 - 4PritiKumariSingh 140,000 140,000 - - - 5RanjanMainali - - 178 178 -(E) Shareholders - - - - - - - 1 - - - - - - - 2 - - - - - - -

Total 20,312,016 - 19,042,016 - 988,358 2,258,358 -

Schedule 4.29

TheStatementofamount,includedundertotalamountofBillsPurchasedanddiscounted,Loans,Advancesandoverdraft,providedtothedirectors,Chiefexecutive,Promoters,employees,Shareholdersandtotheindividualmembersoftheirundividedfamilyoragainsttheguaranteeofsuchpersonsortotheorganizationsorcompaniesinwhichsuchindividualsaremanagingagent,areasfollows:

Sanima Bank58

Schedule 4.30 (A)

STATemenTofCAPiTALfundAs on 15.07.2012 (Ashad End 2069)

1.1 RiSkweighTedexPoSuReS CurrentYear PreviousYear

a RiskWeightedExposureforCreditRisk 10,212,474,617 7,200,551,543b RiskWeightedExposureforOperationalRisk 414,768,186 261,484,290c RiskWeightedExposureforMarketRisk 9,732,586 1,685,430 TotalRiskweightedexposures(a+b+c) 10,636,975,388 7,463,721,263 Adjustments Under Pillar II - - Add: % of the total RWE due to non compliance to Disclosure Requirements (6.4 a 10) - - Add:.%ofthetotaldepositduetoinsufficientLiquidAssets(6.4a6) - -

1.2CAPiTAL CurrentYear PreviousYear

CoreCapital(Tier1) 2,112,703,521 2,106,791,985a Paid up Equity Share Capital 2,016,000,000 2,016,000,000 b IrredeemableNon-cumulativepreferenceshares - -c SharePremium 10,563,747 10,563,747d Proposed Bonus Equity Shares - - e StatutoryGeneralReserves 93,952,490 69,598,577f Retained Earnings 6,203,685 10,629,661 g Un-auditedcurrentyearcumulativeprofit - -h CapitalRedemptionReserve I Capital Adjustment Reserve - - j DividendEqualizationReserves - -k Other Free Reserve - - l Less: Goodwill - - m Less:FictitiousAssets - -n Less:InvestmentinequityinlicensedFinancialInstitutions - -o Less:Investmentinequityofinstitutionswithfinancialinterests 10,355,000 -p Less:Investmentinequityofinstitutionsinexcessoflimits - -q Less:Investmentsarisingoutofunderwritingcommitments - -r Less: Reciprocal crossholdings s Less:OtherDeductions 1,403,044 -

Adjustments Under Pillar II Less:ShortfallinProvision(6.4a1) Less:LoansandFacilitiesextendedtoRelatedPartiesandRestrictedlending(6.4a2) 2,258,358 -

SupplementaryCapital(Tier2) 98,812,091 66,392,831a Cumulativeand/orRedeemablePreferenceShare - -b Subordinated Term Debt - - c Hybrid Capital Instruments - - d Generalloanlossprovision 95,951,491 64,573,860e ExchangeEqualizationReserve 1,800,753 1,800,753f Investment Adjustment Reserve 555,000 - g AssetsRevaluationReserve - -h OtherReserves 504,847 18,218

TotalCapitalfund(TieriandTierii) 2,211,515,612 2,173,184,816

1.3 CAPiTALAdequACYRATioS CurrentYear PreviousYear

Tier1CapitaltoTotalRiskWeightedExposures(AfterBank’sadjustmentsofPillarII) 19.86% 28.23% Tier1andTier2CapitaltoTotalRiskWeightedExposures 20.79% 29.12% (AfterBank’sadjustmentsofPillarII)


RiSkweighTedexPoSuRefoRCRediTRiSkAs on 15.07.2012 (Ashad End 2069)

Ashadend2069 PreviousYear

A.BalanceSheetexposures Book Provision eligible netvalue Risk Riskweighted Riskweight valuea Specificb CRmc d=a-b-c weighte exposuresf=d*e netvalue Amount

CashBalance 256,197,727 - 256,197,727 0% - 147,095,662BalanceWithNepalRastraBank 1,005,249,544 - 1,005,249,544 0% - 326,975,202InvestmentinNepaleseGovernmentSecurities 2,007,065,255 - 2,007,065,255 0% - 670,953,093All Claims on Government of Nepal 51,628,380 - 51,628,380 0% - 26,913,241 InvestmentinNepalRastraBanksecurities - - - 0% - All claims on Nepal Rastra Bank - - - 0% - Claims on Foreign Government and Central Bank (ECA 0-1) - - - 0% - Claims on Foreign Government and Central Bank (ECA -2) - - - 20% - Claims on Foreign Government and Central Bank (ECA -3) - - - 50% - Claims on Foreign Government and Central Bank (ECA-4-6) - - - 100% - ClaimsonForeignGovernmentandCentralBank(ECA-7) - - - 150% - “ClaimsOnBIS,IMF,ECB,ECandonMultilateral Development Banks (MDB’s) recognized by the framework “ - - - 0% - ClaimsonOtherMultilateralDevelopmentBanks - - - 100% - ClaimsonPublicSectorEntity(ECA0-1) - - - 20% - ClaimsonPublicSectorEntity(ECA2) - - - 50% - ClaimsonPublicSectorEntity(ECA3-6) - - - 100% - ClaimsonPublicSectorEntity(ECA7) - - 150% - 17,000,000 25,500,000Claimsondomesticbanksthatmeetcapital adequacyrequirements 133,349,316 - 133,349,316 20% 26,669,863 1,346,987,103 269,397,421Claimsondomesticbanksthatdonotmeet 51,976,330 7,572,132 - 44,404,198 100% 44,404,198 30,000,000 30,000,000capital adequacy requirementsClaimsonforeignbank(ECARating0-1) 113,049,663 - 113,049,663 20% 22,609,933 45,491,738 9,098,349Claimsonforeignbank(ECARating2) - - - 50% - -Claimsonforeignbank(ECARating3-6) - - - 100% - -Claimsonforeignbank(ECARating7) - - - 150% - -Claims on foreign bank incorporated in SAARC - - - 20% - 6,905,130 1,381,026 regionoperatingwithabufferof1%abovetheirrespectiveregulatorycapitalrequirementClaimsonDomesticCorporates 5,286,931,765 - 3,785,093 5,283,146,672 100% 5,283,146,672 2,850,379,396 2,850,379,396Claims on Foreign Corporates (ECA 0-1) - - - 20% - - Claims on Foreign Corporates (ECA 2) - - - 50% - - Claims on Foreign Corporates (ECA 3-6) - - - 100% - - ClaimsonForeignCorporates(ECA7) - - - 150% - -RegulatoryRetailPortfolio(NotOverdue) 2,485,672,044 80,239,885 2,405,432,159 75% 1,804,074,119 1,729,961,049 1,297,470,787ClaimsFullfillingallcriterionofregulatory - - - 100% - 9,958,544 9,958,544retail except granularityClaimssecuredbyresidentialproperties 521,249,896 - 521,249,896 60% 312,749,938 317,710,158 190,626,095Claimsnotfullysecuredbyresidentialproperties - - - 150% - -Claimssecuredbyresidentialproperties(Overdue) - - - - 100% - -ClaimssecuredbyCommercialrealestate 313,145,077 - 313,145,077 100% 313,145,077 572,676,579 572,676,579Pastdueclaims(exceptforclaimsecured 96,138,038 13,114,255 - 83,023,783 150% 124,535,675 3,874,100 5,811,150byresidentialproperties)HighRiskClaims 820,298,682 715,869 14,670,000 804,912,813 150% 1,207,369,220 694,152,962 1,041,229,443Investments in equity and other capital instruments - - - 100% - - ofinstitutionslistedinthestockexchangeInvestments in equity and other capital instruments 10,455,000 - - 10,455,000 150% 15,682,500 100,000 150,000 ofinstitutionsnotlistedinthestockexchangeStaffLoanSecuredbyresidetialproperty - - - 20% - -InterestReceivable/ClaimonGovt.Securities - - 0% - 11,787,851 -CashinTransitandothercashitemsinprocessofcollection - - - 20% - -OtherAssets(asperattachment) 718,033,838 30,620,667 - 687,413,171 100% 687,413,171 554,693,750 554,693,750

ToTAL 13,870,440,555 52,022,923 98,694,97813,719,722,654 9,841,800,3659,363,615,558 6,858,372,539

Schedule 4.30(B)

Sanima Bank60

RiSkweighTedexPoSuRefoRCRediTRiSkAs on 15.07.2012 (Ashad End 2069)

Ashadend2069 PreviousYear

B.offBalanceSheetexposures Book Provision eligible netvalue Risk Riskweighted Riskweight valuea Specificb CRmc d=a-b-c weighte exposuresf=d*e netvalue Amount

Revocable Commitments - 0% - BillsUnderCollection - - 0% - ForwardForeignExchangeContractLiabilities - - 10% - LCCommitmentsWithOriginalMaturityUpto 98,579,305 - - 98,579,305 20% 19,715,860.93 6monthsDomesticCounterpartyForeignCounterparty(ECARating0-1) - - - 20% - ForeignCounterparty(ECARating2) - - - 50% - ForeignCounterparty(ECARating3-6) - - - 100% - ForeignCounterparty(ECARating7) - - - 150% - LC Commitments With Original Maturity - - - 50% - Over6monthsDomesticCounterpartyForeignCounterparty(ECARating0-1) - - - 20% - ForeignCounterparty(ECARating2) - - - 50% - ForeignCounterparty(ECARating3-6) - - - 100% - ForeignCounterparty(ECARating7) - - - 150% - BidBond,PerformanceBondandCounter 337,087,197 20,290,946 322,567,810 50% 161,283,904.94140,754,665.00 70,377,333guaranteeDomesticCounterpartyForeignCounterparty(ECARating0-1) - - - 20% - -ForeignCounterparty(ECARating2) - - - 50% - -ForeignCounterparty(ECARating3-6) - - - 100% - -ForeignCounterparty(ECARating7) - - - 150% - -Underwritingcommitments - - - 50% - -LendingofBank’sSecuritiesorPosting - - - 100% - -ofSecuritiesascollateralRepurchase Agreements, Assets sale with recourse - - - 100% - - AdvancePaymentGuarantee 82,860,080 3,074,179 79,785,901 100% 79,785,901.00(1,405,834.00) (1,405,834)FinancialGuarantee - - 100% - 47,032,343.00 47,032,343Acceptances and Endorsements - - - 100% - - UnpaidportionofPartlypaidsharesandSecurities - - - 100% - -IrrevocableCreditcommitments(ShortTerm) 578,300,721 - 578,300,721 20% 115,660,144.20382,906,751.00 76,581,350Irrevocable Credit commitments (Long Term) - - - 50% - - Claims on foreign bank incorporated in SAARC - - 20% - regionoperatingwithabufferof1%abovetheirrespectiveregulatorycapitalrequirementOtherContingentLiabilities - - 100% -149,593,812.00149,593,812Unpaid Guarantee Claims - - - 200% -

ToTAL 1,096,827,303 -23,365,125 1,073,462,178 370,674,252 718,881,737 342,179,004

TotalRweforcreditRiskBeforeAdjustment(A)+(B) 14,967,267,85752,022,923122,060,10314,793,184,832 10,212,474,61710,082,497,2957,200,551,543 Adjustments under Pillar II Add:10%oftheloanandfacilitiesinexcessofSingle Obligor Limits (6.4 a 3) Add: 1% of the contract (sale) value in case of the sale of credit with recourse (6.4 a 4)TotalRWEforCreditRisk(Afterbank’s Adjustments of Pillar II)Add: 1% of the contract (sale) value in case of the sale of credit with recourse (6.4 a 4)TotalRWEforCreditRisk(Afterbank’s Adjustments of Pillar II)

Schedule 4.30(B)


eLig

iBLeCRe

diTRiSkmiTig

AnTS

As

on

15.0

7.20

12 (A

shad

End

206

9)

Cred

itexpo

sures

dep

osits

dep

osits

gov

t.&

g’te

eof

Sec/

g’te

e

g’te

e

Sec/g

’teeof

TotalR

s.

with

Bank

with

othergold

nRBSecuriti

es

govt.ofn

epal

g’teeofo

therofd

omestic

ofm

dBs

foreignBanks

Bank

s/fi

So

vereigns

Bank

s

(a)

(b)

(c)

(d)

(e)

(f)

(g)

(h)

(i)

BalanceSh

eete

xposures

Cl

aim

s on

For

eign

Gov

ernm

ent a

nd C

entr

al B

ank

(ECA

-2)

-

Clai

ms

on F

orei

gn G

over

nmen

t and

Cen

tral

Ban

k (E

CA -3

)

- Cl

aim

s on

For

eign

Gov

ernm

ent a

nd C

entr

al B

ank

(ECA

-4-6

)

- Claimson

Foreign

Governm

enta

ndCen

tralBan

k(ECA

-7)

-

Claimson

OtherM

ultilateralDevelop

men

tBan

ks

-

Claimson

Pub

licSectorEn

tity(ECA

0-1)

-

Claimson

Pub

licSectorEn

tity(ECA

2)

-

Claimson

Pub

licSectorEn

tity(ECA

3-6)

-

Claimson

Pub

licSectorEn

tity(ECA

7)

-

Claimson

dom

estic

ban

ksth

atm

eetcap

ital

-

adeq

uacy

requ

irem

ents

Claimson

dom

estic

ban

ksth

atdono

tmee

tcap

ital

-

adeq

uacy

requ

irem

ents

Claimson

foreignba

nk(E

CARati

ng0-1)

-

Claimson

foreignba

nk(E

CARati

ng2)

-

Claimson

foreignba

nk(E

CARati

ng3-6)

-

Claimson

foreignba

nk(E

CARati

ng7)

-

Clai

ms

on fo

reig

n ba

nk in

corp

orat

ed in

SA

ARC

regi

on

-

operati

ngwith

abuff

erof1

%abo

veth

eirrespectiv

ere

gula

tory

cap

ital r

equi

rem

ent

Claimson

Dom

estic

Corpo

rates

3,785

,093

3,785

,093

Cl

aim

s on

For

eign

Cor

pora

tes

(ECA

0-1

)

- Cl

aim

s on

For

eign

Cor

pora

tes

(ECA

2)

-

Clai

ms

on F

orei

gn C

orpo

rate

s (E

CA 3

-6)

-

Claimson

Foreign

Corpo

rates(ECA

7)

-

Regu

latoryRetailPortfolio(N

otOverdue

)80,23

9,88

5

80,23

9,88

5ClaimsFu

llfilling

allcrite

rion

ofregulatory

-

-re

tail

exce

pt g

ranu

lari

tyClaimssecuredbyre

side

ntialprope

rties

-

-Claimsno

tfullysecured

byreside

ntialprope

rties

-

Claimssecuredbyre

side

ntialprope

rties(O

verdue

)

-Cl

aim

s se

cure

d by

Com

mer

cial

real

est

ate

- Pa

st d

ue c

laim

s (e

xcep

t for

cla

im s

ecur

ed

-

byre

side

ntialprope

rties)

HighRiskClaim

s

14,67

0,00

0

14,67

0,00

0In

vest

men

ts in

equ

ity a

nd o

ther

cap

ital i

nstr

umen

ts

-

ofin

stitutio

nslisted

inth

estockexchan

geIn

vest

men

ts in

equ

ity a

nd o

ther

cap

ital i

nstr

umen

ts

-

ofin

stitutio

nsnotlisted

inth

estockexchan

geOtherAssets(aspe

ratt

achm

ent)

-

Total

98,69

4,97

8

-

-

-

-

-

-

-

-

98,69

4,97

8

Sche

dule

4.3

0 (C

)

Sanima Bank62

eLig

iBLeCRe

diTRiSkmiTig

AnTS

As

on

15.0

7.20

12 (A

shad

End

206

9)

Cred

itexpo

sures

dep

osits

dep

osits

gov

t.&

g’te

eof

Sec/

g’te

e

g’te

eSec/g

’teeof

TotalR

s.

with

Bank

with

othergold

nRBSecuriti

es

govt.ofn

epal

g’teeofo

therofd

omestic

ofm

dBs

foreignBanks

Bank

s/fi

So

vereigns

Bank

s

(a)

(b)

(c)

(d)

(e)

(f)

(g)

(h)

(i)

offBa

lanceSh

eete

xposures

Forw

ardForeignExchan

geCon

tractL

iabiliti

es

-

LC C

omm

itmen

ts W

ith O

rigi

nal M

atur

ity U

p to

-

6mon

ths(dom

estic

)EC

ARati

ng0-1

-

ECARati

ng2

-

ECARati

ng3-6

-

ECARati

ng7

-

LC C

omm

itmen

ts W

ith O

rigi

nal M

atur

ity

-

Over6mon

ths(dom

estic

)EC

ARati

ng0-1

-

ECARati

ng2

-

ECARati

ng3-6

-

ECARati

ng7

-

Bid

Bond

, Per

form

ance

Bon

d an

d Co

unte

r 20

,290

,946

2

0,29

0,94

6 Gua

rantee

Dom

estic

Cou

nterpa

rty

ECARati

ng0-1

-

ECARati

ng2

-

ECARati

ng3-6

-

ECARati

ng7

-

Gua

rant

ee In

voke

d bu

t yet

not

hon

oure

d -

-

Und

erwritin

gcommitm

ents

-

Lend

ingofBan

k’sSecuritie

sorPostin

g

-

ofSecuritiesascollateral

Repu

rcha

se A

gree

men

ts, A

sset

s sa

le w

ith

-

re

cour

se (i

nclu

ding

repo

/ re

vers

e re

po)

Advan

cePaymen

tGua

rantee

3,074

,179

3,074

,179

Fi

nanc

ial G

uara

ntee

-

-

A

ccep

tanc

es a

nd E

ndor

sem

ents

-

Unp

aidpo

rtion

ofP

artly

paidsharesand

Securities

-

Irre

voca

ble

Cred

it co

mm

itmen

ts (S

hort

Ter

m)

-

Ir

revo

cabl

e Cr

edit

com

mitm

ents

(Lon

g Te

rm)

-

OtherCon

tingentLiabiliti

es

-

-

Total

23,36

5,12

5

-

-

-

-

-

-

-

-

23,36

5,12

5

grand

Total

122,06

0,10

2.87

-

-

-

-

-

-

-

-

122

,060

,102

.87

Unp

aidpo

rtion

ofP

artly

paidsharesand

Securities

-

Irre

voca

ble

Cred

it co

mm

itmen

ts (S

hort

Ter

m)

-

Ir

revo

cabl

e Cr

edit

com

mitm

ents

(Lon

g Te

rm)

-

OtherCon

tingentLiabiliti

es

-

-

Total

-

-

-

-

-

-

-

-

Sche

dule

4.3

0 (C

)


RiSkweighTedexPoSuRefoRoPeRATionALRiSkAs on 15.07.2012 (Ashad End 2069)

Particulars PreviousYearsfrom2069Ashadend 2068Ashadend Year1(2065/66) Year2(2066/67)Year3(2067/68)

NetInterestIncome 122,657,953 216,346,417 355,456,322Commission and Discount Income 4,251,601 3,908,315 4,949,150 OtherOperatingIncome 25,564,749 30,740,447 34,805,648ExchangeFluctuationIncome 8,479,790 5,606,611 157,502Addition/DeductionInterestSuspenseduringtheperiod (364,221) 4,434,107 12,541,981grossincome(a) 160,589,872 261,035,897 407,910,603 -Alfa(b) 15% 15% 15% 15%FixedPercentageofGrossIncome[c=(a×b)] 24,088,481 39,155,385 61,186,590CapitalRequirementforoperationalrisk(d)(averageofc) 41,476,819 26,148,429RiskWeight(reciprocalofcapitalrequirementof10%)intimes(e) 10 10equivalentRiskweightexposure[f=(d×e)] 414,768,186 261,484,290PiLLAR-iiAdJuSTmenTS ifgrossincomeforallthelastthreeyearsisnegative(6.4a8) TotalCreditandInvestment(netofSpecificProvision) CapitalRequirementforoperationalrisk(5%) RiskWeight(reciprocalofcapitalrequirementof10%)intimes 10 10EquivalentRiskWeightExposure[g] equivalentRiskweightexposure[h=f+g] 414,768,186 261,484,290

Schedule 4.30(D)

RiSkweighTedexPoSuRefoRmARkeTRiSkAs on 15.07. 2012 (Ashad End 2069)

S.n. Currency openPosition(fCY) Rate openPosition(nPR) RelevantopenPosition

1 INR (10,210,360) (16,344,233.13) 16,344,233 209,410 2 USD (34,819) (3,072,804.11) 3,072,804 2,695,2053 EUR (422) (45,418.08) 45,418 425,120 4 GBP (20) (2,715.75) 2,716 37,2955 AUD - - - 3,822 6 JPY - - -7 CAD - - -8 CHF - - -9 QTR - - -10 SLR - - -11 DHR - - -12 SGD - - -13 YUN - - -14 THB - - -15 DKK - - -16 .. - - -TotalopenPosition(a) 19,465,171 3,370,852fixedPercentage(b) 5% 5%CapitalChargeformarketRisk[c=(a×b)] 973,259 168,543Riskweight(reciprocalofcapitalrequirementof10%)intimes(d) 10 10equivalentRiskweightexposure[e=(c×d)] 9,732,586 1,685,430

Schedule 4.30(E)

Sanima Bank64

PRinCiPLeindiCAToRS(At least for previous 5 years) Schedule 4.31

Particulars indicators fY2064/65 fY2065/66 fY2066/67 fY2067/68 fY2068/69

1 PercentofNetProfit/GrossIncome Percent 9.10 14.55 13.07 14.39 9.922 EarningPerShare Rs. 5.60 7.53 10.63 7.70 6.043 MarketValuePerShare Rs. 1,430.00 783 497 497 2254 PriceEarningRatio Percent 255.57 103.94 46.74 64.55 37.255 Dividend (Including Bonus) on Share Capital Percent - 5.00 10.00 6.50 5.506 Cash Dividend on Share Capital Percent - - 10.00 6.50 5.507 InterestIncome/Loan&Advances Percent 6.60 8.88 10.74 13.23 12.168 StaffExpenses/TotalOperatingExpenses Percent 8.95 8.14 39.01 39.84 34.509 InterestExpenses/TotalDepositandBorrowing Percent 4.08 4.79 6.43 9.74 6.6910 Exchange Gain/Total Income Percent 0.93 2.18 0.85 0.01 (0.01)11 StaffBonus/TotalStaffExpenses Percent 18.78 33.44 29.27 39.80 21.6612 NetProfit/LoanandAdvances Percent 0.85 1.45 1.67 2.41 1.2613 NetProfit/TotalAssets Percent 0.56 0.99 1.18 1.66 0.8914 TotalCredit/Deposit Percent 87.94 91.39 89.33 101.25 86.2515 TotalOperatingExpenses/TotalAssets Percent 4.74 5.10 0.93 0.90 1.6916 Adequacy of Capital Fund on Risk Weighted Assets a) CoreCapital Percent 16.76 18.10 15.56 27.54 19.86 b) SupplementaryCaptial Percent 0.97 0.91 0.94 0.87 0.93 c) TotalCapitalFund Percent 17.73 19.02 16.51 28.41 20.7917 Liquidity Percent 17.61 11.97 28.19 26.57 30.2418 Non-PerformingLoan/TotalCredit Percent 1.513 0.175 0.080 0.004 0.4819 Weighted Average Interest Rate Spread Percent 3.65 3.95 4.01 4.04 3.3820 BookNet-Worth Rs. 431,056,364 869,560,886 881,194,758 2,108,610,956 2,129,580,52321 TotalNumberofShares Nos. 3,840,000 7,667,658 8,064,000 20,160,000 20,160,00022 TotalStaff Nos. 61 120 149 197 23223 Others - - - - - -


SignificantAccountingPolicies Schedule 4.32

1.generalinformationSanima Bank Limited (“The Bank”) is a limited liability company domiciledinNepal.TheaddressofitsregisteredofficeisatAlakapuriBuilding, Naxal, Kathmandu, Nepal.

TheBankhasregisteredwiththeOfficeoftheCompanyRegistraron 16 Ashad , 2061, obtained license from Nepal Rastra Bank on 11 Mangsir2061andcame intooperation from21Mangsir2061 toconduct banking business in Nepal. The Bank is listed on Nepal Stock Exchange Limited. Furthermore, the bank has obtained license to operateas‘A’classfinancialinstitutionon01Falgun2068andstartedoperationas‘A’classfinancialinstitutionw.e.f.03Falgun2068(i.e.upgradedto‘A’classFinancialInstitution).

ThefinancialstatementswereauthorizedforissuebytheBoardofDirectors and approved by the Central Bank of Nepal (Nepal Rastra Bank-‘NRB’).

2.SummaryofSignificantAccountingPoliciesTheprincipalaccountingpoliciesappliedinthepreparationofthesefinancial statementsare setoutbelow.Thesepolicieshavebeenconsistently applied throughout the period, unless otherwise stated.

3.StatementofComplianceThe financial statements has been prepared in accordance withNepal Accounting Standards (“NAS”) issued by theNepalAccountingStandardsBoardexceptotherwise stated,GenerallyAccepted Accounting Principles (“GAAP”), Bank and FinancialInstitutions Act, 2063 (“BAFIA”) and other requirements of Directives,circularsandguidelinesissuedbyNRBandinconformitywith the Companies Act, 2063.

Interest income on loans and advances is recognized on cash basis. Proposed Dividend and Extraordinary items (if any) are accounted forasrequiredbyNRBdirective.

4.BasisofPreparationThe financial statements are prepared under historical cost conventionfollowingaccrualbasisofaccountingexceptotherwisestated...ThepreparationoffinancialstatementsinconformitywithNASandGAAPrequiresmanagementtousecertaincriticalaccountingestimates. It also requiresmanagement toexercise judgment inprocessofdevelopingandapplyingtheBank’saccountingpolicies.TheManagementbelieves thatestimatesandpolicies soappliedare reasonable in the circumstances of the cases. All the formats of thefinancialstatementsareinaccordancewiththeNRBDirectives.

5.interestincomeInterest income on loans and advances is recognized on cash basis aspertheNepalRastraBankDirective,althoughthispracticeisnotinaccordancewithNAS-7(Revenue),whichprescribestherevenue

to be recognized on accrual basis. Interest income includes Rs 23,451,557.09onloanandadvancetoNationalPrioritySectorandisrecognized as income by capitalizing the same under approval from Nepal Rastra Bank.

Interest income on investments is accounted for on accrual basis.

6.CommissionincomeAll the commission incomes are accounted for on accrual basis. However, itisthepracticeoftheBanktorecognizeincomeoncashbasisuptoRs.50,000forserviceperiodofmorethanafinancialyear.

7.dividendincomeDividend on equity shares will be recognized when the right to receive dividend is established.

8.foreignexchangeTransactionsForeigncurrencytransactionsarerecordedattherateprevailingasonthedateoftransaction.DifferencebetweenbuyingandsellingratesofForeignExchange,atthetimeofsettlementoftransaction,isaccountedfor as “Trading Gain” under “Exchange Gain” in Schedule -4.22

Foreigncurrencyassetsand liabilitiesasonbalancesheetdatearetranslated into Nepalese Rupees at the mid exchange rate prevailing on theBalanceSheetdateandanydifferencearisingoutofsuchtransactionis recognizedas“RevaluationGain”.25percentof revaluationgainis transferredtoExchangeFluctuationFundthroughProfitandLossAppropriationAccountasrequiredbyNepalRastraBankDirectives.

9.interestexpenseInterestondeposit liabilitiesandborrowings is accounted foronaccrual basis.

10.LoansandAdvancesincludingBillsPurchasedLoansandadvances,overdraftsandbillspurchased includedirectfinance provided to customers. These include overdrafts, term loans, consumer loans etc. All credit exposures are subject to regular review and are graded according to the level of credit risk and are classifiedasperNRBDirectives.Loansandadvances,overdraftsandbills purchased are shown net of mandatory provisions as required byNRBDirectives.

11.StaffLoansandAdvancesLoansandadvancesgrantedtostaffareshownunderotherassetsSchedule-4.16.

12.LoanLossProvisionThe provision for possible losses on loans, advances and bills purchased are provided at the rates between 1 percent to 100 percentaccordingtoclassificationofsuchriskassetsasperNepalRastraBankDirectives.

Sanima Bank66

13.writeoffUnrecoverableloansandadvancesarewrittenoffinaccordancewiththewriteoffBy¬lawsapprovedbytheBoardofDirectorsandNRB,without prejudice to Bank’s right to recover such loans and advances.

14.RecoveryofLoanandinterestLoan is recovered in the sequence of penal, interest and principal.

15.investmentsInvestmentsareclassifiedasheldfortrading,heldtomaturityandavailable for sale.

a.heldforTrading:Investmentsthataremadeforthepurposeofgeneratingprofitfromshort termfluctuations inpriceareclassifiedunder thiscategory.These investments are marked to market on a daily basis and differenceisreflectedintheprofitandlossaccount.

b.heldtomaturity:TheinvestmentsmadewithpositiveintentandabilityoftheBanktoholdtillmaturityisclassifiedasheldtomaturityinvestments.Theheldtomaturityinvestmentsarevaluedatamortizedcosti.e.thecost price less any impairments (if applicable). The impairments are includedintheprofitandlossaccountsfortheperiod.

Bondsareaccounted forat cost including theunamortizedbondpremium.

c.AvailableforSale:All other investments that are neither “held for trading” nor “held to maturity”areclassifiedunderthiscategory.Theseinvestmentsaremarkedtomarketonaregularbasisandthedifferenceisadjustedthrough reserves. All Investments are subject to regular review as requiredbyNepalRastraBankDirectives.2%ofinvestmentclassifiedas Available for Sale is maintained as Investment Adjustment Reserve asrequiredbyNRBdirective.

InvestmentmadeinCapitalMerchantBankofRs.7572,132ismaturedandsusceptibleforrecovery;therefore,suchinvestmentisshownin available for sale.

Further, Rs. 329,940 of premium paid on purchase of Government Bond is regrouped and included in investment in Government Bond figureofpreviousyear.

16.fixedAssetsanddepreciationa. Fixed assets are stated at cost less accumulated depreciation

and impairment losses. b. AssetswithavaluelessthanRs.5,000arechargedoffasarev-

enueexpense irrespectiveof itsuseful life in theyearofpur-chase.

c. DepreciationoffixedassetsiscalculatedfollowingtheDiminish-ing Balance Method applying the rate as prescribed by Income Tax Act, 2058.

d. Leaseholdimprovementsarecapitalizedatcostandamortized

over the lease periods or ten years whichever is earlier. The amountofamortizationischargedtoProfitandLossAccount.

e. Depreciationonassetsadditionduringtheyearshallbechargedfrom date of purchase or put to use whichever is earlier.

17.non-BankingAssets(nBA)Non-Banking Assets is valued at lower of loan amount or fair market value of the assets acquired. Provisions for NBA will be made in accordancewiththeNepalRastraBankDirectives.

18.SoftwareexpensesAcquired computer software licensesare capitalizedon thebasisofcost incurredtoacquireandbringtousethespecificsoftware.Thecostsareamortizedovertheirestimateduseful liveswhich isconsidered 5 years.

19.deferredRevenueexpenditure:Bankhasapolicytorecognizeexpenseshavingbenefitofmorethan1yearasdeferredrevenueexpenditureandamortizesamewithinaperiod of useful life or 10 years whichever is lesser.

20.employeeBenefitsa.Providentfund:Providentfundcontributionisrecognizedasexpensesanddepositedintotheapprovedretirementfund(EmployeeProvidentFundOffice).

b.AccumulatedLeave: AccumulatedleavepayabletostaffisrecognizedonaccrualbasisaspertheEmployeeServiceRegulationoftheBank.

c.gratuity: GratuityliabilityofstaffisaccruedonlyaftercompletionofafixedperiodoffulltimeemploymentwiththeBankinaccordancewiththeEmployeeServiceRegulationandisnotfunded.

21.StationeryStockStationery stockat theyearend isaccounted forat cost. For thepurposeofvaluationofthesameFIFOmethodhasbeenapplied.

22.Provisions,Contingent LiabilitiesAndContingentAssetsTheBankcreatesaprovisionwhenthereisapresentobligationoftheentityarisingfrompastevents,thesettlementsofwhichisexpectedto result in anoutflow from theentityof resources embodyingeconomicbenefitsandareliableestimatecanbemadeoftheamountoftheobligation.Adisclosureforcontingentliabilityismadewhenthereisapresentobligationthatmayormaynot,requireanoutflowofresources.Whenthereisapossibleobligationorpresentobligationinrespectofwhichthelikelihoodofoutflowofresourcesisremote,noprovisionordisclosureismadeinthefinancialstatement.Contingentliabilities are shown in Schedule4.17Contingent assets arenotrecognizedinthefinancialstatements.However,contingentassetsareassessedcontinuallyandifitisvirtuallycertainthataneconomicbenefitwillarise,theassetsandrelatedincomearerecognizedintheperiod in which the change occurs.


23.incomeTaxProvision for income tax has been made on the basis of the Income Tax Act, 2058 and amendments thereto.

24.deferredTaxDeferred taxes are accounted using the asset and liability method. Deferred tax assets and liabilities are recognized for the futuretaxconsequencesattributabletotemporarydifferencesbetweenthefinancialstatement’scarryingamountsofexistingassetsandliabilities, and their respective tax bases. Deferred tax assetsandliabilitiesaremeasuredusingtaxratesexpectedtoapplytotaxableincomeintheyearsinwhichthosetemporarydifferences

Notes to Accounts Schedule 4.33

1.ProvisionforStaffBonusStaffbonushasbeencalculatedandprovidedat10percentofnetprofit,aftermakingadjustmentforloanlossprovisionandbonus.

2.StaffhousingfundNostaffhousingfundhasbeencreatedbytheBankasrequiredunder the Labour Act, 2048. However the Bank has provided housing loan facility to its employee as per employee service regulationoftheBank.

3.generalReserve20percentofthenetprofitistransferredtoGeneralReservesasper the requirement of BAFIA 2063.

4.ProposeddividendDividend is provided at 5.50 percent of Paid up Capital as proposed by the Board of Directors which is pending approval by NRBandAnnualGeneralMeeting.

ReconciliationStatus TotalAmount <3months >3<9months >9months

BranchReconciliation - - - -

AgencyAccounts 35,379 35,317 91 (29)

Rs. in thousand

areexpectedtoberecoveredorsettledbasedonthe lawsthathave been enacted or subsequently enacted by the reportingdate.Deferredtaxassetsarisingfromtemporarydifferenceandunused tax losses are recognized to the extent there is virtual certainty that sufficient future taxable incomewill be availableagainst which such deferred tax assets can be realized (according to NAS-09 “Income Taxes”).

25.RoundingoffThe Financial Statements are presented in Nepalese Rupees rounded to the nearest Rupee. Previous year amount has been regrouped/reclassified,wherevernecessarytofacilitatecomparison.

5.unpaiddividendAs on balance sheet date total dividend payable amounts to Rs. 88, 93,890.42ofwhichnoamountisunpaidoverfiveyears.

6.ReconciliationStatusTheBankhascarriedoutthereconciliationbetweenInterBranchTransactionsondailybasis.Howeverreconciliationofthelocalandforeignbankandfinancialinstitutionaccountshasbeendoneonweekly/fortnightly/monthlybasis.Thedifferencehasbeenidentified,reviewed and reconciled and same has been or will be adjusted in due course of business.

Sanima Bank68

8.SummaryStatusofthedepositLiabilities

9.weightedAverageinterestRateSpread

10.Particularsofexpensesyettobeexpensed-off

Particulars CurrentYear PreviousYear Change Rs. Rs. CurrentDeposit 372,570 131,256 241,314MarginDeposit 21,925 9,857 12,068SavingDeposit 3,554,886 2,670,384 884,502CallDeposit 1,775,365 852,953 922,412FixedDeposit 5,453,988 2,692,287 2,761,701Total 11,178,734 6,356,737 4,821,997

Particulars Rate(%)Average Rate of Return on Loans & Advances 13.28 Average Rate on Deposits (LCY) 8.58 NetSpread 4.70

Particulars CapitalizedAmount Amortizedduringtheyear BalanceAmountComputerSoftware 10,644 2,059 8,585Deferred Revenue Exp. 1,454 51 1,403

Total 12,098 2,110 9,988

11.SummaryofConcentrationofexposureFundedandnon-fundedfacilitiesandsectorwiseloansarewithinthelimitsprescribedbyNRBDirectives.Summaryofconcentrationofexposures:

Particulars Loans&Advances Deposit&Borrowings ContingentLiabilitiesTotalAmountAsOn15.07.2012(2069.03.31) 9,641,286 11,178,734 1,096,827HighestExposureToSingleParty 267,787 358,763 75,416HighestExposuresToSingleParty(inpercentage) 2.78% 3.21% 6.88%

Rs. in thousand

Rs. in thousand

Rs. in thousand

7.SummaryofLoansandAdvancesdisbursed,RecoveredandPrincipalandinterestwritten-off:

Particulars Amount(Rs.)

Opening Balance 6,436,185 Loans Disbursed 9,290,945 Loans Recovered 6,085,844 PrincipalWrittenoff -InterestWrittenoff -Closingoutstanding 9,641,286

Rs in thousand


Rs. in lacs14.ClassificationofAssetsAndLiabilitiesBasedonmaturity

S.N PARTICULARS 1-90DAYS 91-180DAYS 181-270DAYS 271-365DAYS OVER1YEAR TOTAL Assets 1 Cash Balance 2,562 - - - - 2,562 2 BalanceWithBanksAndFinancialInstitutions 1,116 - - - - 1,1163 Investment In Foreign Banks - - - 883 - 883 4 Call Money 10 - - - - 10 5 NepalGovernmentSecurities 11,182 2,953 - - 4,971 19,1066 Nepal Rastra Bank Bonds - - - - 920 9207 InterBank/FinancialInstitutionLending - - - - - -8 LoansAndAdvances 29,655 16,037 12,687 3,951 34,083 96,4139 Others 2,445 - - - - 2,445 TotalAssets 46,970 18,989 12,687 4,833 39,973 123,455Liabilities¬ 10 CurrentDeposits* 3,577 - - - 368 3,94511 Saving Deposits 22,420 6,906 6,906 15,484 1,588 53,303 12 FixedDeposits 8,187 8,149 16,389 17,675 4,140 54,54013 Debentures - - - - - -14 Borrowing - - - - - -15 OtherLiabilities 3,948 1,633 939 1,437 1,123 9,081 TotalLiabilities 38,132 16,688 24,234 34,596 7,219 120,868 NetFinancialAssets 8,883 2,302 (11,547) (29,762) 32,754 2,587 CumulativeTotalAssets 8,883 11,140 (407) (30,169) 2,585

15.detailsofnonBankingAssetsThe Bank has not taken possession of any assets taken as security against the loans and advances.

16.detailsofLeaseholdAssetsAmortization

CostPrice Amortizeduptolastyear Amortizedduringtheyear TotalAmortizedAmount NetBookValue54,632 9,362 8,058 17,420 37,212

12.PaidupShareCapitalPaid up share capital of the bank has been changed from year to year as follows:

Financial Year Paid up Share Capital Remarks2061/62 224,000,000 Opening Share Capital 2062/63 224,000,000 2063/64 320,000,000 Issue of 30% public shares. 2064/65 384,000,000 Issue of 5:1 right shares. 2065/66 805,165,800 Issueof1:1rightand5%bonussharesafterissueofright.2066/67 806,400,000 Publicsaleof12,342no.ofunsubscribedrightshares.2067/68 2,016,000,000 Issueof1:1.5rightshares.2068/69 2,016,000,000 No change in total Share Capital during the year.

Particulars BasicEarningsPerShare DilutedEarningsPerShare**Netprofitattributabletoequityshareholders(Rs.) 121,769,566 121,769,566Weighted average number of shares outstanding (No.) 20,160,000 20,160,000

earningsPerShare(Rs.) 6.04 6.04

** Since the Bank has not issued preference share and debentures/bonds, basic earnings per share and diluted earnings per share are same. The closing price of the share was Rs. 225.

13.earningsPerShare,SharePriceAndShareTransactionEarnings Per Share is calculated and disclosed as per NAS - 26 as follows:

Rs. in thousand

Sanima Bank70

19.deferredTaxAssets/(Liability)DeferredtaxassetsandliabilitieshavebeencomputedinaccordancewithNAS-9,IncomeTaxesfrom15July2012andareattributabletothe following:

Particulars AsperBooksofAccounts TaxBase TemporaryDifferenceFixedAssets 270,232 256,919 13,313LeaseholdAssets&Software 47,201 46,122 1,901StaffGratuity (8,059) - (8,059)ProvisionForStaffLeave (8,016) - (8,016)netTemporarydifferences (1683)deferredTaxLiability/(Asset)AsAt15July2012@30percent (505)Deferred Tax Liability/ (Asset) Till 16 July 2011 18 DeferredTaxExpense/(Income)ForCurrentYear (487)

20.ProvisionforgratuityTheBankhasprovidedforfuturepaymentofgratuityliabilityinfullasperemployeeserviceregulation.AsperEmployeeServiceRegulationofSANIMA,inrespectofemployeeswhohavecompleted3yearsofserviceandanadditionalprovisionofRs.4,132,836hasbeen made during the year.

21.ProvisionforincomeTaxincludesadditionaltaxliabilityofRs.108,909pertainingtoFY2067/68andthetotalamounthasbeenchargedtoProfitandLossAccount.

22.RelatedParties

Rs. in Thousand

Particulars AmountProfitbeforetaxasperProfit&LossAccount 173,284Add:AdjustmentsforDepreciationandamortizationasperbooksofaccounts 36,622Provision for Gratuity 4,133 ProvisionforLeaveencashment 4,774Officeequipmentnoncapitalized 142Donationnotallowable 209Total 219,164Less: Adjustments for DepreciationasperIncomeTaxAct 46,189Total 46,189TaxableProfitasperincometaxAct,2058 172,975CorporateincomeTax@30% 51,892

Rs. in Thousand

17.detailofdeferredRevenueexpenditure:Theamortizeexpensesondeferredrevenueexpenditureandcomputersoftwareisincludedindepreciation.

18.TaxLiabilityReconciliationReconciliationofprofitasperfinancialstatementisreconciledwithtaxableprofittocomputetaxliabilityasfollows:


**PendinggrantoflicensefromInsuranceBoardtheCompanieshaveyettocommenceoperation.

22.2.ThepromotershaveobtainedthefollowingadvancesfromtheBankagainstthecollateraloftheirfixeddepositmaintainedwiththeBank:

*All loans are against to maintained with the Bank.

22.3.Totalofkeymanagementpersonnelcompensation(disclosureaspernAS-16):

22.1.TheBankhasenteredintofinancialtransactionswiththefollowingrelatedpartieswheredirectorshavefinancialinterest.

Rs. in thousand

RelatedParty Natureoftransaction ThisYear PreviousYearKantipurTelevisionPvt.Ltd Deposit 24 0.18 Loan - 8,396 MedicareHospital&ResearchCentrePvt.Ltd Deposit 25,548 10,738SanimaHydro&EngineeringPvt.Ltd. Deposit 7,230 4,054SanimaLifeInsuranceCompanyLtd** Deposit 2,320 2,177SanimaInsuranceCompanyLtd** Deposit 720 676SanimaFoundation Deposit 115 115SanimaMaiHydroPowerLtd Deposit 69,245 10,785SanimaPvt.Ltd Deposit 1,204 197Tamor Sanima Energy Pvt. Ltd. Deposit 10 10 Khumbu Carpet Industries Deposit 0.18 41 FundforHydroInvestment Deposit 1,510 4,374Sanima Hydro & Engineering Pvt. Ltd Sanima Mai Rental income 525 -HydroPower Ltd Sanima Hydro Power Pvt. Ltd

Rs. in thousand

DetailsofKeyManagement ChiefExecutive Otherkeymanagement Remarks Officer PersonnelShortTermEmployeeBenefits 6,549 7,635 OtherKeyManagementPersonnelInclude DeputyChiefExecutiveofficerandother management team of manager level & above PostEmploymentBenefits 383 444 ThisIncludesProvidentFundContribution.TerminalBenefits 4,767 2,683 TheBankHasAPolicyOfPaymentOfGratuity AndLeaveEncashment.ReferNote21And27.Share Based Payments Nil Nil OtherLongTermBenefits Nil Nil

Rs. in thousand

Particulars AmountOutstandingasof15July2012LoantoPromoterShareholders 570*

Additionalinformation:a.Keymanagementpersonnelarealsoeligibleforthefollowingbenefits:

1.BenefitsasperEmployeeServiceRegulationoftheBank.

2.BonusoutofprofitasperBonusAct.

3. Housing loans and advances as per Housing Loan Scheme of the Bank.

4.ChiefExecutiveOfficerisentitledtotheuseofBank’scar.

b.TheBoardofDirectorswaspaidRs.714,000meetingfeeduringtheyear.

Sanima Bank72

23. operatingLeaseCommitment TheBankhastakenvariouspropertiesoncancellablelongtermlease.SincetheBankpossessestheright

to terminatethesaideasebeforeitsmaturitybygivinganoticeofspecifiedperiod,thefutureliabilitytheBankislimitedtoleasepayablefornoticeperiodoly.

24. StaffLeave TheBankhasaccountedforstaffleaveliabilitytoitsconfirmedemployeesonaccrualbasis.Totalleavelia

bilityason15July2012isRs.8,058,903.98.BankhaspaidRs.600,937.32asleaveencashmenttoexistingandtothosestaffswhoresignedduringfY2011/12.Similarly,anadditionalprovisionofRs.4,774,226.04hasbeenmadeforstaffleaveliabilitywhichischargedtotheprofitandlossaccount.

Detailedinformationaboutthetermdebtswithinformationontheoutstandingamount,maturity,andamountraisedduringtheyearandamounteligibletobereckonedascapitalfund.NILDeductionfromCapitalNIL

Capital Adequacy Disclosure 1.CoreCapitalanditsComponents:

Particulars Rs.a. Paid Up Equity Share Capital 2,016,000,000 b. StatutoryGeneralReserve 93,953,072c. Retained Earnings 6,203,685 d. SharePremium 10,563,747e. Proposed Bonus Equity Share f. Un-auditedCurrentyearCumulativeProfitDeductions -g. Less:MiscellaneousExpenditurenotwrittenoff 1,403,044h. Less:InvestmentinequityinlicensedFinancialInstitutions 10,355,000i. AdjustmentunderPillariiLess:LoansandFacilities extendedtoRelatedPartiesandRestrictedlending(6.4a2) 2,258,358

CoreCapital(Tier1) 2,112,703,521

Supplementarycapitalanditscomponents:

Description Rs.a. General Loan Loss Provision 95,951,491 b. ExchangeEquilisationReserve 1,800,753c. Investment Adjustment Reserve 555,000 d. OtherReserves 504,847

SupplementaryCapital(Tier2) 98,812,091

Rs. in Thousand

TotalqualifyingCapital

Particulars Rs.a. CoreCapital(tier1) 2,114,106,565b. SupplementaryCapital(tier2) 98,812,091

TotalCapitalfund(tier1&2) 2,212,918,655

Rs. in Thousand


CapitalAdequacyRatio20.79%

Summaryofthebank’sinternalapproachtoassesstheadequacyofitscapitaltosupportcurrentandfutureactivities

TheexistingpaidupcapitaloftheBankisNPR.2,016,000,000anditisadoptingsimplifiedapproachtoassessthecapitaladequacyasspecifiedbyNepalRastraBank.

Summaryoftheterms,conditionsandmainfeaturesofallcapitalinstruments,especiallyincaseofsubordi-natedtermdebtsincludinghybridcapitalinstrument.

Allthecapitalofthebanksareunconditional.Thebankdonothaveanysubordinatedtermdebts.

2. RiskexposuresRiskweightedexposure

Risk Weighted Exposure Rs.a. RiskWeightedExposureforCreditRisk 10,212,474,617b. RiskWeightedExposureforOperationalRisk 414,768,186c. RiskWeightedExposureforMarketRisk 9,732,586Adjustment Under Pillar II Add: 3% of the total RWE due to non compliance to Disclosure Requirement (6.4 a 10) - Add:......%ofthetotaldepositduetoinsufficientLiquid(6.4a6) - Add: 1% of Net interest income as Supervisory Haircut - Add: 2% of RWE as Supervisory Haircut -

TotalRiskweightedexposures(afterBank’sadjustmentsofPillarii) 10,636,975,389

Risk Weighted Exposure Rs.a. Claims on Government and Central Bank -b. ClaimsonOtherOfficialEntities -c. Claims on Banks 93,683,994 d. ClaimsonCorporateandSecuritiesFirms 5,283,146,672e. ClaimsonRegulatoryRetailPortfolio 1,804,074,119f. Claimssecuredbyresidentialproperties 312,749,938g. ClaimssecuredbyCommercialRealEstate 313,145,077h. PastDueClaims 124,535,675i. HighRiskClaims 1,223,051,720j. OtherAssets 687,413,172k. OffBalanceSheetItems 370,674,252

TotalRiskweightedAssetsonCredit 10,212,474,617

Riskweightedexposuresundereachof11categoriesofCreditRisk

Risk Weighted Exposure Rs.a. RiskWeightedExposureforCreditRisk 10,212,474,617b. RiskWeightedExposureforOperationalRisk 414,768,186c. RiskWeightedExposureforMarketRisk 9,732,586d. Capitalchargeforshortfallofliquidassets -e. Add: 1% of Net interest income as Supervisory Haircut -f. Add: 2% of RWE as Supervisory Haircut -g. Total Risk Weighted Exposure 10,636,975,388h. Total Capital Fund (Tier I & Tier II) 2,211,515,612

CapitalAdequacyRatio(h÷g) 20.79%

TotalRiskweightedexposureCalculationTable

Sanima Bank74

movementofnonperformingAssetsNonperforming assets up to previous Year was Rs. 287,149. This year the same has been increased to NPR13,114,225.16

writeoffofLoansandinterestSuspenseniLmovementinLoanLossProvisionsandinterestSuspenseLoan loss provision and interest suspense up to previously Year was NPR 64,861,010 and NPR 22,290,014 respectively.Inthisyear,LoanLossProvisionhasbeenincreasedtoNPR109,768,816andInterestSuspensehasalsobeenincreasedtoNPR30,620,667.

detailofAdditionalLoanlossProvisionsAdditional loan lossprovisionofNPR10,698,003,NPR929,103andNPR1,487,149madeforSubstandardLoan,DoubtfulLoan&LossLoanrespectively.

Segregationofinvestmentportfoliointoheldfortrading,heldtomaturityandavailableforsalecategoryOutoftotal investment,NPR2,095,315,255isheldtomaturitycategoryandNPR18,027,132arecategorizedasavailable for sale.

3.RiskmanagementfunctionRiskmanagementobjectiveandpoliciesintheareaofcredit,marketandoperationalriskincludingfollowing:n Strategiesandprocess;n Thestructureandorganizationoftherelevantriskmanagementfunctions;n Thescopeandnatureofriskreportingand/ormeasurementsystems;andn Policies for hedging and/or mitigating risk and strategies, and processes for monitoring the continuingeffectivenessofhedges/mitigates

a. Restructured/Rescheduled loan Nil

b. Substandard Loan NPR 10,698,003

c.DoubtfulLoan NPR929,103

d.LossLoan NPR1,487,149

RatiosofnonperformingAssets:e. Gross NPA to Gross Advances 0.48%

f. Net NPA to Net Advances 0.48%

Amountofnon-performingAssets(Bothgrossandnet)


RiskmanagementobjectiveandpoliciesCreditRiskCredit risk management of the bank is focused on the inherent risk associated with the credit and the possibility of the non recovery of credit due to such risk and evaluating and minimizing suchpossibility of non- recovery. Relevant policy and processes are mentioned in the credit policy guidelines prepared by the bankand disseminated to concerned employees of the bank. Credit policy guideline discourages providing credit merely on the basis of reputationoftheborrowerandthepracticeofthecompetitorbank.

Creditpolicyguidelinesalsomentionthehighriskareaandriskmanagementguidelines.Creditpolicyguidelinesgiveemphasisonfollowingarea:Risk assessment: purpose of risk assessment is to determine the customer’sabilitytomeethisobligationandinherentriskassociatedwith the credit and minimizing such risk.

Risk grading: The bank classifies customer according tocreditworthinesstofocusattentiononcustomerrequiringincreasedsupervisionandremedialaction.

Creditapproval: Dual credit approval system is adopted in which credit recommended by sales person shall be independently assess risk by credit department and approved accordingly.

Assets writing strategies: The bank has framed assets writingstrategy within the broad framework of Credit Policy Guideline of the bank. The assets writing strategy of the bank has laid downtheacceptancecriteriaforbank’sbusinessbysettingcountrylevelrisktriggers,containmentactions,portfoliotargetandoverall riskmanagement strategy.

marketriskThe bank has Assets Liability Management Committee whichperiodically reviews the change in liquidity, interest rate and foreign exchangeratesandimpactofsuchchangesandfunctionstominimizetheriskarisingoutofsuchchangesaswellasinvestmentfunction.Bankalways tries to minimize foreign exchange risk exposure by squaring positionoftheforeignexchangeondailybasisasfaraspossible.

operationalriskTo minimize the operational risk the bank has prepared andimplementedvariousprocedures,guidelinesanddirectives.Someof them are as follows:• ThebankhasstrongMISsystemwhichhelpstoprovidegreater

control over the daytodayactivitiesofthebank.• Dualcontrolsystemmechanismisadoptedforrecordingevery

transaction• Authorityleveloftheeachemployeeshasbeendefined• Executive committee meeting of the bank is conducted

periodicallytofindoutoperationalriskandminimizesuchrisk.• The bank has independent Internal Audit and Compliance

department respectivelywhich conduct the audit of activitiesperformed by the various departments.

• Bankhasanoperationalmanualwhichhelpstocontroldaytodayoperationalactivities.

• BankalsoadoptedKYCguidelines.• Typeofeligiblecreditriskmitigatesusedandbenefitobtained

Credit riskmitigatesusedby thebank isdepositof theborrowerwithin the bank, Government securities, Gold, cash marginand deposit with other banks and financial institutions havingsupervisoryhaircutof20%forcapitaladequacy.Suchmitigateshasminimum impact on the capital adequacy of the bank.

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Schedule 4.35ComPARiSonofunAudiTedAndAudiTedfinAnCiALSTATemenTSASoffY2068/69 (2011/12)

S.n. Particulars Asperunaudited AsperAudited variance Reasonsforvariance financial financial in Statements Statements Amount in% 1 TotalCapitalandLiabilities(1.1to1.7) 13,781,713 13,722,466 59,247 0.43 1.1 Paid Up Capital 2,016,000 2,016,000 - - 1.2 ReserveandSurplus 223,676 113,581 110,096 49.22 Asperproposedappropriationof cash dividend. 1.3 Debenture and Bond - - - - 1.4 Borrowings 88,250 88,250 - - 1.5 Deposits(a+b) 11,178,734 11,178,734 0 0.00 a. DomesticCurrency 11,126,467 11,126,467 - - b. ForeignCurrency 52,267 52,267 - - 1.6 ProposedandPayableDividend - 110,880 (110,880) - Asperproposedappropriationof cash dividend. 1.7 IncomeTaxLiability - - - - 1.8 OtherLiabilities 275,052 215,021 60,031 21.83 Regroupingofsomeitmesinother assets.2 TotalAssets(2.1to2.7) 13,781,713 13,722,466 59,247 0.43 2.1 Cash&BankBalance 1,372,403 1,373,063 (660) (0.05) Regroupingofcurrentandcallac counts. 2.2 MoneyatCallandShortNotice 660 - 660 100.00 Regroupingofcurrentandcall accounts. 2.3 Investments 2,108,792 2,105,770 3,022 0.14 2.4 LoansandAdvances 9,530,238 9,531,505 (1,267) (0.01) Billspurchased-regrouped a. RealEstateLoan 1,068,377 1,068,377 - - 1. ResidentialRealEstateLoan (Except Personal Home Loan up to Rs. 80 lacs) 203,392 203,392 - - 2. BusinessComplex&Residential ApartmentConstructionLoan 61,119 61,119 - - 3. IncomeGeneratingCommercial Complex Loan - - 4. Other Real Estate Loan (IncludingLandPurchaseandPlotting) 803,866 803,866 - b. Personal Home Loan of Rs. 10millionorbelow 487,822 487,822 - c. MarginTypeLoan 104,978 104,978 - - d. Term Loan 1,523,582 1,523,582 - - e. OverdraftLoan/TRLoan/WCLoan 4,042,081 4,042,081 - f. Others 2,303,397 2,304,664 (1,267) Billspurchased-regrouped 2.5 FixedAssets 479,013 479,044 (32) (0.01) Defferedrevenueexpenditure shown in other assets. 2.6 Non Banking Assets - - - - 2.7 OtherAssets 290,608 233,084 57,524 19.79 Regroupingtheitemofotherliabilities.

Figures in ‘000

Sanima Bank78

Schedule 4.35ComPARiSonofunAudiTedAndAudiTedfinAnCiALSTATemenTSASoffY2068/69 (2011/12) Continue...

S.n. Particulars Asperunaudited AsperAudited variance Reasonsforvariance financial financial in Statements Statements Amount in%

3 ProfitandLossAccount 3.1 InterestIncome 1,172,145 1,172,200 (55) (0.00) Adjustmentofinterestreceivedon various call accounts. 3.2 InterestExpense 753,562 753,617 (55) (0.01) A. netinterestincome(3.1-3.2) 418,584 418,584 0 0.00 3.3 Fees, Commission and Discount 12,443 11,251 1,192 9.58 Regrouping of commission and dis countandotheroperatingincome. 3.4 OtherOperatingIncome 43,426 44,619 (1,192) (2.75) 3.5 ForeignExchangeGain/Loss(Net) (172) (175) 3 (1.70) B.Totaloperatingincome (A+3.3+3.4+3.5) 474,281 474,278 3 0.00 3.6 StaffExpenses 79,571 79,987 (416) (0.52) 3.7 OtherOperatingExpenses 147,513 151,864 (4,350) (2.95) Regroupingofwriteoffexpenses C.operatingProfitBeforeProvision (B.-3.6-3.7) 247,197 242,427 4,770 1.93 3.8 Provision for Possible Losses 52,835 52,493 342 0.65 Adjustment of year end provisions. D.OperatingProfit(C.-3.8) 194,362 189,934 4,428 2.28 3.9 NonOperatingIncome/Expenses(Net) 678 678 - - 3.10 Write Back of Provision For Possible Loss - - - - e. ProfitfromRegularActivities (d.+3.9+3.10) 195,040 190,613 4,428 2.27 3.11 ExtraordinaryIncome/Expenses(Net) (4,749) - (4,749) - Regroupingofwriteoffexpenses f. ProfitbeforeBonusandTaxes (e.+3.11) 190,291 190,613 (322) (0.17) 3.12 ProvisionforStaffBonus 17,299 17,328 (29) (0.17) Increaseinprofitbeforebonusandtax. 3.13 Provision For Tax 52,006 51,515 492 0.95 Provision as per Income Tax Act, 2058 andcomputationofDeferredTaxAs set/Liability. g. netProfit/(Loss)(f.-3.12-3.13) 120,985 121,770 (784) (0.65)

Figures in ‘000


unAudiTedfinAnCiALReSuLTS(quARTeRLY)As at Fourth Quarter ended on 31 Ashad 2069 (15/07/2012) of the Fiscal Year 2011/2012 (2068/69)

S.n. Particulars Thisquarterended Previousquarter CorrespondingYear (31.03.2069/ ended Previousquarter 15.07.2012) (30.12.2068/ ended(32.03.2068/ 12.04.2012) 16.07.2011)

1 TotalCapitalandLiabilities(1.1to1.7) 13,781,713 11,480,765 9,363,381 1.1 Paid Up Capital 2,016,000 2,016,000 2,016,000 1.2 ReserveandSurplus 223,676 181,027 92,611 1.3 Debenture and Bond - - - 1.4 Borrowings 88,250 - 658,000 1.5 Deposits(a+b) 11,178,734 9,131,282 6,356,737 a. DomesticCurrency 11,126,467 9,051,164 6,287,791 b. ForeignCurrency 52,267 80,118 68,946 1.6 Income Tax Liability - - - 1.7 OtherLiabilities 275,052 152,456 240,0332 TotalAssets(2.1to2.7) 13,781,713 11,480,765 9,363,381 2.1 Cash&BankBalance 1,372,403 1,220,051 526,307 2.2 MoneyatCallandShortNotice 660 4,489 1,049,937 2.3 Investments 2,108,792 1,244,289 916,653 2.4 LoansandAdvances(Net) 9,530,238 8,324,314 6,371,324 a. RealEstateLoan 1,068,377 1,510,065 1,489,744 1. ResidentialRealEstateLoan (ExceptPersonalHomeLoanuptoRs.100lacs) 203,392 816,542 752,207 2. BusinessComplex&Residential ApartmentConstructionLoan 61,119 61,279 - 3. IncomeGeneratingCommercialComplexLoan - - 4. Other Real Estate Loan (IncludingLandPurchaseandPlotting) 803,866 632,245 737,537 b. PersonalHomeLoanofRs.100LacsorLess 487,822 426,764 249,705 c. MarginTypeLoan 104,978 87,840 117,480 d. TermLoan 1,523,582 1,401,142 958,700 e. OverdraftLoan/TRLoan/WCLoan 4,042,081 3,288,037 2,241,800 f. Others 2,303,397 1,610,466 1,313,895 2.5 FixedAssets 479,013 460,978 361,072 2.6 Non Banking Assets - - - 2.7 OtherAssets 290,608 226,644 138,088

Schedule 4(A) Figures in ‘000

Sanima Bank80

unAudiTedfinAnCiALReSuLTS(quARTeRLY)As at Fourth Quarter ended on 31 Ashad 2069 (15/07/2012) of the Fiscal Year 2011/2012 (2068/69)

3 ProfitandLossAccount uptoThisquarter uptoPrevious upto quarter Corresponding PreviousYear quarter

3.1 InterestIncome 1,172,145 819,750 1,038,4573.2 InterestExpense 753,562 533,161 683,000

A.netinterestincome(3.1-3.2) 418,584 286,589 355,4563.3 Fees, Commission and Discount 12,443 8,661 4,949 3.4 OtherOperatingIncome 43,426 28,295 34,8063.5 ForeignExchangeGain/Loss(Net) (172) (2,017) 158

B.Totaloperatingincome(A+3.3+3.4+3.5) 474,281 321,528 395,3693.6 StaffExpenses 79,571 57,752 55,8373.7 OtherOperatingExpenses 147,513 97,055 84,325

C.operatingProfitBeforeProvision(B.-3.6-3.7) 247,197 166,721 255,2063.8 ProvisionforPossibleLosses 52,835 43,504 13,272

d.operatingProfit(C.-3.8) 194,362 123,218 241,9343.9 NonOperatingIncome/Expenses(Net) 678 54 3483.10 Write Back of Provision For Possible Loss - - 2,161

e.ProfitfromRegularActivities(d.+3.9+3.10) 195,040 123,271 244,4443.11 ExtraordaniryIncome/Expenses(Net) (4,749) - -

f.ProfitbeforeBonusandTaxes(e.+3.11) 190,291 123,271 244,4443.12 ProvisionforStaffBonus 17,299 11,206 22,2223.13 ProvisionForTax 52,006 33,728 67,001

g.netProfit/(Loss)(f.-3.12-3.13) 120,985 78,336 155,220

Schedule 4(A) Figures in ‘000

4 Ratios Attheendof Attheendof Attheendof Thisquarter Previous Corresponding quarter PreviousYear quarter

4.1 CapitalFundtoRWA 21.80% 24.57% 28.41%4.2 NonPerformingLoan(NPL)toTotalLoan 0.48% 0.87% 0.004%4.3 TotalLoanLossProvisiontoTotalNPL 237.92% 147.41% 22587.90%4.4 CostofFundafterCRR(LCY) 9.91% 10.38% 10.48%4.5 CreditToDepositRatio(CalculatedasperNRBDirectives) 72.19% 75.05% 75.41%


foRmno.5oTheRASSeTSAs on 15.07.2012 (Ashad End 2069)

S.no.Assets SlnRB9.1 grossAmount SpecificProvision netBalance

1 Cash and Cash Items in Transit - - -

2 Miscellaneous Expenditure notwrittenoff 9,988,573 - 9,988,573

3 FixedAssets Assets:9 479,044,422 - 479,044,422

4 Interest Receivable on Other Investment Assets : 10.1.1 256,558 - 256,558

5 Interest Receivable on Loan Assets : (10.1-10.1.1-10.1.2) 30,620,667 30,620,667 0

6 Non Banking Assets NBA-TB Value - - -

7 ReconciliationAccount - - -

8 DraftPaidWithoutNotice Assets:10.8 - - -

9 SundryDebtors Assets:10.4 172,387 - 172,387

10 Advance payment and Deposits Assets : (10.5+10.9+11 less FicticiousAssets) 9,567,886 - 9,567,886

11 StaffLoan&Advance Assets:10.3 68,188,886 - 68,188,886

12 Stationery Assets:10.2 2,349,815 - 2,349,815

13 other Assets:10.11 117,844,644 - 117,844,644

ToTAL 718,033,838 30,620,667 687,413,171

ReConCiLiATionofTAxABLePRofiTAndBookPRofiT

Particulars Amount

ProfitbeforetaxasperProfit&LossAccount 173,284,327

Add:Adjustmentsfor

Depreciation & amortization as per books of accounts 36,621,811

Provison for Gratuity 4,132,836

Provision for Leave Encashment 4,774,226

Donation 208,713

Office Equipment non capitalized 142,175

Less:Adjustmentsfor

Depreciation as per Income Tax 46,189,153

Taxable Profit as per Income tax Act 2058 172,974,936

CorporateincomeTax@30% 51,892,481

Sanima Bank82

LiSToffoReignCoRReSPondenTBAnkSAs on 05.07.2012

S.no. BiC(SwifTCode) nameoffinancialinstitutions

1 BOMLAEAD MASHREQBANK PSC.,DUBAI,AE

2 BOMLBHBM MASHREQBANK PSC., MANAMA, BAHARAIN

3 HABBGB2L HABIB-UK PLC., LONDON, GB

4 HBLILKLX HATTON NATIONAL BANK PLC, COLOMBO,LK

5 ICICINBB ICICI BANK LIMITED, MUMBAI, INDIA

6 IOBASGSG INDIAN OVERSEAS BANK, SINGAPORE

7 MSHQEGCA MASHREQ BANK, CAIRO, EGYPT

8 MSHQGB2L MASHREQ BANK PSC, LONDON, GB

9 MSHQHKHH MASHREQBANK PSC., HONG KONG BRANCH

10 MSHQINBB MASHREQ BANK, MUMBAI, INDIA

11 MSHQKWKW MASHREQBANK PSC.,KUWAIT

12 MSHQQAQA MASHREQ BANK,DOHA, QATAR

13 MSHQUS33 MASHREQBANK PSC., NEW YORK BRANCH

14 HANYUS33 HABIB AMERICAN BANK, NEW YORK, US

15 SCBLDEFX STANDARD CHARTERED, FRANKFURT, GERMANY

16 SCBLNPKA STANDARD CHARTERED, KATHMANDU, NEPAL

17 SCBLSGSG STANDARD CHARTERED, SINGAPORE

18 SCBLTHBX STANDARD CHARTERED, THAILAND

19 HDFCINBB HDFC BANK LIMITED, MUMBAI, INDIA

20 CITITHBX CITI BANK N.A, THAILAND

21 SCBLAEAD STANDARD CHARTERED, DUBAI, UAE

22 SCBLBDDX STANDARD CHARTERED, DHAKA, BANGLADESH

23 SCBLCNSX STANDARD CHARTERED, SHANGHAI, CHINA

24 SCBLGB2L STANDARD CHARTERED, LONDON, UK

25 SCBLHKHH STANDARD CHARTERED, HONGKONG

26 SCBLIDJX STANDARD CHARTERED, JAKARTA, INDONESIA

27 SCBLINBB STANDARD CHARTERED, MUMBAI, INDIA

28 SCBLJPJT STANDARD CHARTERED, TOKYO, JAPAN

29 SCBLMYKX STANDARD CHARTERED, KAULA LUMPUR, MALAYSIA

30 SCBLPKKX STANDARD CHARTERED, KARACHI, PAKISTAN

31 SCBLQAQX STANDARD CHARTERED, DOHA, QATAR

32 SCBLTWTP STANDARD CHARTERED, TAIPEI, TAIWAN

33 SCBLUS33 STANDARD CHARTERED, NEW YORK, US

34 SCBLVNVX STANDARD CHARTERED, HANOI, VIETNAM

35 HBZUAEAD HABIBBANKAG,ZURICH,DUBAI

inagurationofSanimaasaCommercialBankbygovernordr.YubaRajkhatiwada

AnnuAl RepoRt2011-12

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