F2013 Bank of Chinapic.bankofchina.com/bocappd/zambia/201506/P...Henry C Nondo 2014 Partner Lusaka 5 BANK OF CHINA (ZAMBIA) LIMTED STATEMENT OF COMPREHENSIVE INCOME for the year ended

BANK OF CHINA ZAMBIA LIMITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2013

BANK OF CHINA ZAMBIA LIMITED FINANCIAL STATEMENTS for the year ended 31 December 2013 CONTENTS PAGE Report of the directors 1 - 2 Independent auditor’s report 3 – 4 Statement of comprehensive income 5 Statement of changes in equity 6 Statement of financial position 7 Statement of cash flows 8 Notes to the financial statements 9-35 Computation of capital position Appendix I – III

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BANK OF CHINA ZAMBIA LIMITED REPORT OF THE DIRECTORS for the year ended 31 December 2013 The Directors have pleasure in presenting their Annual Report together with the audited financial statements for the year ended 31 December 2013. Directors - Mr Nie Lin – Chairperson - Mr Zhou Jian Jun- General Manager and Executive

Director - Mrs Du Aifang - Mr Chita Chibesakunda - Mr Song Guolin

Bank Secretary - Mr Liu Xiao Fei Auditors - Ernst & Young Principal activity The principal activity of the company continues to be commercial banking in its widest aspect and the promotion of banking related services. Review of business As at 31 December 2013 the bank had total deposits of K2,315 million and advances of K259 million as against the corresponding figures of K1,750 million and K135 million respectively for the previous year. The bank maintained sufficient liquidity. Investments in Treasury Bills were K534 million at 31 December 2013, as against K182 million for the year ended 31 December 2012. Profit before tax The bank earned a profit before tax of K56.9 million for the year ended 31 December 2013 compared to a profit of K21.7 million for the year ended 31 December 2012. Dividends The directors proposed dividends of K18.3 million for the year ended 31 December 2013 and K13.4 million for the year ended 31 December 2012. These are yet to be ratified during the AGM (Note 40). The bank has authorised, issued and fully paid up share capital of K460,580,000 comprising 230,290,000 (2012: 9,490,000) ordinary shares of K2,000 each. Auditors Ernst & Young, the bank’s auditors retire at the forthcoming Annual General Meeting. As they have indicated their willingness to continue in office, a resolution for their re-appointment will be submitted to the Annual General Meeting.

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BANK OF CHINA ZAMBIA LIMITED REPORT OF THE DIRECTORS for the year ended 31 December 2013 Responsibility of directors in respect of preparation of financial statements The Bank’s directors are responsible for the preparation and fair presentation of the financial statements of Bank of China Zambia Limited, comprising the statement of financial position as at 31 December 2013, and statements of comprehensive income, changes in equity and cash flows for the year then ended, and the notes to the financial statements, which include a summary of significant accounting policies and other explanatory notes, in accordance with the International Financial Reporting Standards, the Banking and Financial Services Act,1994 (as amended) and the Companies Act, 1994. The directors’ responsibility includes: designing, implementing and monitoring internal controls relevant to the preparation and fair presentation of these financial statements that are free from material misstatement, whether due to fraud or error, selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances. The directors’ responsibility also includes maintaining adequate accounting records and an effective system of risk management. The directors have made an assessment of the Bank’s ability to continue as a going concern and have no reason to believe the business will not be a going concern in the year ahead. Approval of the financial statements The financial statements of the Bank as indicated above, were approved by the directors on ……………………… and are signed on its behalf by: -------------------------------- ------------------------------- Director Director -------------------------------- Director

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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF BANK OF CHINA ZAMBIA LIMITED Report on the financial statements We have audited the financial statements of Bank of China Zambia Limited set out on pages 9 to 35, which comprise the statement of financial position as at 31 December 2013 and the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended and the notes, comprising a summary of significant accounting policies and other explanatory information. Directors’ responsibility for the financial statements The company’s directors are responsible for the preparation and fair presentation of these financial statements in accordance with International Financial Reporting Standards and the requirements of the Companies Act, 1994 and the Banking and Financial Services Act, 1994 (as amended) and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

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Opinion In our opinion, the financial statements present fairly, in all material respects, the financial position of Bank of China Zambia Limited as at 31 December 2013 and its financial performance and cash flows for the year then ended in accordance with International Financial Reporting Standards and the requirements of the Companies Act, 1994 and the Banking and Financial Services Act, 1994 (as amended). Other reports required by the Companies Act As part of our audit of the financial statements for the year ended 31 December 2013, we have read the directors’ report for the purpose of identifying whether there are material inconsistencies between these reports and the audited financial statements. These reports are the responsibility of the respective preparers. Based on reading these reports we have not identified material inconsistencies between these reports and the audited financial statements. However, we have not audited these reports and accordingly do not express an opinion on these reports. Ernst & Young Chartered Accountants Henry C Nondo 2014 Partner Lusaka

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BANK OF CHINA (ZAMBIA) LIMTED STATEMENT OF COMPREHENSIVE INCOME for the year ended 31 December 2013 Note 2013 2012 K'000 K'000 Interest income Loans 7,282 4,645 Government securities 46,807 15,621 Deposits with banks 14,864 11,176 Total interest income 68,953 31,442 Interest expenses On deposits (912) (1,099) On bank (806) (36) Net interest income 67,235 30,307 Add: Non-interest income 38,144 30,349 Gross operating income 105,379 60,656 Less: Operating expenses (46,373) (37,964) Profit before net exchange losses 59,006 22,692 Net exchange losses (2,048) (933) Profit before tax 3 56,958 21,759 Income tax expense 4 (20,405) (8,355) Profit for the year 16 36,553 13,404 Other comprehensive income Net other comprehensive income to be reclassified to profit or loss in subsequent periods

-

-

Net other comprehensive income not to be reclassified to profit or loss in subsequent periods- Provision tax reverse

-

- Total comprehensive income 36,553 13,404

The notes on pages 9 to 35 form part of these financial statements.

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BANK OF CHINA (ZAMBIA) LIMTED STATEMENT OF CHANGES IN EQUITY for the year ended 31 December 2013 Share Statutory Revenue capital reserves reserves Total K'000 K'000 K'000 K'000 Balance at 1 January 2012 18,980 18,980 37,103 75,063 Tax adjustment 47 47 Profit for the year - - 13,404 13,404 Other comprehensive income - - - - Total comprehensive income - - 13,404 13,404 Balance at 31 December 2012 18,980 18,980 50,554 88,514 Balance at 1 January 2013 18,980 18,980 50,554 88,514 Capital injection 441,600 - - 441,600 Tax adjustment - - 6,136 6,136 Profit for the year - - 36,553 36,553 Other comprehensive income - - - - Total comprehensive income - - 36,553 36,553 Transfer to statutory reserves - 18,276 (18,276) - Balance at 31 December 2013 460,580 37,256 74,967 572,803


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BANK OF CHINA ZAMBIA LIMITED STATEMENT OF FINANCIAL POSITION as at 31 December 2013 Note 2013 2012 K'000 K'000 Assets Cash on hand 5 10,623 5,737 Balances with central bank 6 690,236 614,493 Cash and short term funds at non group banks 7 600,752 415,476 Treasury bills 8 534,044 182,463 Cash and short term funds-group banks 9 518,752 198,779 Loans and advances-group banks 10 341,930 414,000 Loans and advances-customers 11 259,161 135,080 Other assets 12 37,187 14,438 Investments 13 203 190 Property, plant and equipment 14 9,243 8,870 3,002,131 1,989,526 Shareholders' funds Share capital 15 460,580 18,980 Statutory reserves 16 37,256 18,980 Revenue reserves 16 74,967 50,554 572,803 88,514 Liabilities Due to other banks 17 28,143 58,137 Demand and savings deposits 18 2,256,865 1,704,766 Time deposits 19 58,662 44,926 Income tax payable 4 7,749 6,403 Deferred income tax 4 644 609 Other liabilities 20 77,265 86,171 2,429,328 1,901,012 3,002,131 1,989,526 Contra accounts Letters of credit 21 26,708 6,652 Letters of guarantee 21 983,631 565,985 1,010,339 572,637

These financial statements were approved by the board of directors on……………………...... and signed on its behalf by: ------------------------------- -------------------------------- ------------------------------------ Mr Nie Lin Mr Liu Xiao Fei Mr Zhou Jian Jun Chairperson Bank Secretary General Manager The notes on pages 9 to 35 form part of these financial statements.

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BANK OF CHINA ZAMBIA LIMITED STATEMENT OF CASH FLOWS for the year ended 31 December 2013 Note 2013 2012 K'000 K'000 Cash flows from operating activities Profit before tax 56,958 21,759 Tax adjustment - (47) Depreciation 1,599 1,461 (Increase)/decrease in other assets (22,749) 272 (Decrease)/Increase in other liabilities (8,906) 9,300 Increase in customer deposits 565,835 434,269 (Increase)/decrease in loans and advances to customers (124,081) 9,473

(Decrease)/increase due to other banks (29,994) 12,057 Tax paid (12,888) (9,511) Net cash flows from operating activities 425,774 479,033 Cash flows from investing activities Movement in investments (13) (2) Movement in treasury bills (351,581) (7,829) Purchase of plant and equipment (1,972) (656) Net cash flows used in investing activities (353,566) (8,487) Cash flows from financing activities Capital injection 441,600 - Movement in cash and cash equivalents Net cash flow 513,808 470,546 Cash and cash equivalents at beginning of year 1,648,485 1,177,939 Cash and cash equivalents at end of year 22 2,162,293 1,648,485


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BANK OF CHINA ZAMBIA LIMITED NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2013 1. Principal Activity

The bank is engaged in the business of commercial banking in its widest aspect and the provision of related financial services.

2. Significant Accounting Policies

State of compliance The financial statements have been prepared in accordance with the International Financial Reporting Standards (IFRS) adopted by the International Accounting Standards Board (IASB) and comply with the Banking and Financial Services Act of 1994 (as amended) and the Companies’ Act 1994.

2.1 Basis of Financial Statements Preparation

Revenue recognition Interest income is recognized as it accrues taking account of the principal outstanding and the rate applicable. Interest income and expense include the amortization of any discount or premium or other differences between the initial carry amount of an interest bearing instrument and its amount at maturity on an effective interest rate basis. Loans and other facilities are recognized when a binding obligation has been entered into. Commitment, facility and loan fees are recognized according to the nature of service provided. Fee and commission income in respect of loans and advances is amortised over the period of the expected life of the facility. Impairment of loans and advances The bank assesses at each statement of financial position date whether there is objective evidence that a loan or group of loans and advances are impaired. Loans and advances are impaired and impairment losses event (or events) has an impact on the estimate future cash flows of the asset that can be reliably estimated. When a loan is uncollectible, it is written off against the related provision for loan losses. Such loans are written off after all the necessary procedures have been completed and the amount of the loss has been determined. Subsequent recoveries are applied in terms of Banking and Financial Service Act. Under the Banking and Financial Services Act, interest on loans and advances is accrued to income until such time as reasonable doubt exists about its collectability; thereafter, and until all or part of the loan is written off, interest continues to accrue on the customers’ accounts, but is not included in income. Such interest suspended is deducted from loans and advances.

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BANK OF CHINA ZAMBIA LIMITED NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2013 2. Significant Accounting Policies (Continued)

The carrying amount of the bank’s other assets are reviewed at each statement of financial position date to determine whether there is any indication of impairment. If any such exists, the asset’s recoverable amount is estimated. An impairment loss is recognized in the profit and loss account whenever the carrying of an asset exceeds its recoverable amount. Foreign currencies Transactions in foreign currencies are translated at the foreign exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies, which are stated at historical cost, are translated at the foreign exchange rate ruling at that date. Foreign exchange differences arising on transaction are recognised in the statement of comprehensive income. Non-monetary assets and liabilities denominated in foreign currencies that are stated at fair value are translated to the reporting currency at the foreign exchange rates ruling at the dates that the values were determined. Financial Instruments Classification When applicable the bank classifies financial assets as: Financial assets at fair value through profit and loss; loans and receivables, held-to-maturity assets; and available-for-sale assets. Financial assets at fair value through profit and loss This category has two sub-categories: Financial assets held-for-trading, and those designated at fair value through profit and loss at inception. A financial asset is classified in this category if acquired principally for the purpose of selling in the short term or if so designated by management. Loans and receivables are loans and receivables created by the bank providing money to a debtor other than those created with the intention of short term profit taking. Loans and receivables comprise loans and advances to banks and customers. Held-to-maturity assets are financial assets with fixed or determinable payments and fixed maturity that the bank has the intent and ability to hold maturity.

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Financial Instrument (Continued) Available-for-sale assets are financial assets intended to be held for an indefinite period of time, which may be sold in response to need for liquidity or changes in interest rates or exchange rates. Held-for-trading instruments are financial assets held principally for the purpose of generating a profit from short term fluctuations in price dealers’ margins.

Recognition

The bank recognizes financial assets held-for-trading and available-for-sale assets on the date it commits to purchase the assets. From this date any gains and losses arising from changes in fair value of the assets are similarly recognized.

Measurement

Financial instruments are measured initially at cost, including transaction costs. Subsequent to initial recognition, trade instruments and available-for-sale assets are measures at fair value, except that any instrument that does not have a quoted market price in an active market and whose fair value cannot be reliably measured is stated at cost, including transaction costs less impairment losses. Non-trading financial liabilities, originated loans and receivables and held-to-maturity assets are measured at amortised cost less impaired losses. Amortised cost is calculated on the effective interest rate method.

Fair Value Measurement Principles

Where a financial instrument is shown at fair value it is based on the quoted market price at the statement of financial position date without any deduction for transaction costs. If a quoted market price is not available, the instrument is stated at cost.

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Gains and Losses on Subsequent Measurement Gains and losses arising from a change in the fair value of available-for-sale assets are recognized directly in equity. When the financial assets are sold, collected or otherwise disposed of the cumulative gain or loss recognized in equity is transferred to the statement of comprehensive income. Gains and losses arising from a change in fair value of trading instruments are recognized in the statement of comprehensive income.

De-recognition A financial asset is derecognized when the bank loses control over the contractual rights that comprised that asset. This occurs when the rights are realized, expire or are surrendered. A financial liability is derecognized when it is extinguished.

Retirement Benefits

The bank contributes to the Statutory Pension Scheme in Zambia namely National Pension Scheme Authority (NAPSA) where the bank pays an amount equal to the employee’s contributions. Employees’ contribute 5% of their gross earnings or a maximum of K5,216,911 whichever is lower. Government Debt Securities held-to-maturity Debt investments that the bank has the intent and ability to hold maturity are classified as held-to-maturity assets. Government debt securities (government bonds and treasury bills) held-to-maturity, are stated at amortized cost less any amounts written off to reflect permanent diminution in value. Any accrued interest included under accrued income. Equity Investments Equity investments are carried out at fair value or cost. Where carried at cost, investments are stated at cost less impairment or other amounts written off to recognize other than temporary decline in the value of the investment.

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Property and Equipment – Owned Assets Items of property, plant and equipment are stated at the lower of historical cost and recoverable amount less accumulated depreciation. Expenditure on repaired and maintenance of property and equipment made to restore or maintain future economic benefits expected from the asset is recognized as an expense when incurred. Property, plant and equipment are depreciated using the straight line method to write the gross book value of the various assets over the period of their expected useful lives at the following annual rates:

Leasehold improvements 20% Installations 20% Motor vehicles 20% Furniture and fittings 20% Computers 20% Office furniture and equipment 20% Premises 3.23%

Capital work in progress Capital work in progress (CWIP) costs are costs incurred in respect of various assets in the course of construction or set up. Such CWIP costs are accumulated into CWIP account and carried forward, without amortisation, until such time as the projects are certified complete and brought into operational use. The CWIP costs are capitalised to property or equipment and are amortised in accordance with the above policies. Tax The tax charge is determined in accordance with the provisions of the Income Tax Act, 1966 (as amended) and is based on the adjusted profit for the year. Tax on the profit or loss for the year comprises current taxation and the change in deferred tax provision. Deferred tax is calculated under the statement of financial position liability method, whereby the taxable effect of temporary differences between the tax base of assets and liabilities and their carrying values for financial reporting purposes is recognised in the statement of comprehensive income for the period. A deferred tax asset is recognised only where it is probable that the tax benefits will be realised.

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Repurchase and resale agreements The bank enters into purchases (sales) of investments under agreements to resell (repurchase) substantially identical investments at a certain date in the future at a fixed price. Investments sold under repurchase agreements continue to be recognised in the statement of financial position as investment securities and the proceeds from the sale of the investments are reported as liabilities to customers. The difference between the sale and repurchase considerations is recognised on an accrual basis over the period of the transaction and is included in interest. Offsetting Financial assets and liabilities are offset and the net amount is reported in the statement of financial position when the bank has a legally enforceable right to set off the recognised amounts and the transactions are intended to be settled on a net basis.

Borrowings Borrowings are initially recognised at fair value net of transaction costs incurred. After initial recognition such borrowings are recognised at amortised cost using the effective interest rate method. Provisions Provisions are recognised when the bank has a present legal or constructive obligation as a result of past events and it is probable that an out flow of resources embodying economic benefits will be required to settle the obligation; and a reliable estimate of the amount of the obligation can be made. Dividends Dividends are recognised as a liability in the period in which they are approved by the shareholders. Fiduciary activities The bank acts in a fiduciary capacity that result in the holding of assets on behalf of individuals and other institutions. These assets are excluded from these financial statements as they are not assets of the bank.

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BANK OF CHINA ZAMBIA LIMITED NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2013

2. Significant Accounting Policies (Continued)

Cash and cash equivalents Cash and cash equivalents comprise cash in hand and balances with the Bank of Zambia, placements with local banks, bank balances held net of balances due to group companies and non group companies. Impairment losses on loans and advances The bank reviews its loan portfolio to assess impairment at least on a monthly basis. In determining whether an impairment loss should be recorded in the statement of comprehensive income, the bank makes judgements as to whether there is any observable data indicating that there is a measurable decrease in the estimated future cash flows from a portfolio of loans before the decrease can be identified with an individual loan in that portfolio. This evidence may include observable data indicating that there has been an adverse change in the payment status of borrowers in a group, or national or local economic conditions that correlate with defaults on assets in the group. Management uses estimates based on historical loss experience for assets with credit risk characteristics and objective evidence of impairment similar to those in the portfolio when scheduling its future cash flows. The methodology and assumptions used for estimating both the amount and timing of future cash flows are reviewed regularly to reduce any differences between loss estimates and actual loss experience.

Held to maturity investments The bank follows guidance of IAS 39 on classifying investments as held to maturity. This classification requires significant judgment. In making this judgement, the bank evaluates its intention and ability to hold such investments to maturity. If the bank fails to keep these investments to maturity other than for the specific circumstances defined in IAS 39, it will be required to reclassify the entire class as available for sale. The investments would therefore be measured at fair value and not amortised cost.

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Fair value of derivatives

The fair value of financial instruments that are not quoted in active markets are determined by using valuation techniques. Where valuation techniques (for example, models) are used to determine fair values, they are validated and periodically reviewed by qualified personnel independent of the area that created them. All models are certified before they are used, and models are calibrated to ensure that outputs reflect actual data and comparative market prices. To the extent practical, models use only observable data, however areas such as credit risk (both own and counterparty), volatilities and correlations require management to make estimates. Changes in assumptions about these factors could affect reported fair value of financial instruments. Income taxes The tax charged to the accounts is subject to agreement with the Zambia Revenue Authority. When the final tax outcome upon agreement of assessments differs from the amounts initially recorded, such differences are adjusted in subsequent periods.

2.2 New and amended standards and interpretations

Standards issued but not yet effective IAS 32 Offsetting Financial Assets and Financial Liabilities — Amendments to IAS 32 These amendments clarify the meaning of “currently has a legally enforceable right to set-off”. The amendments also clarify the application of the IAS 32 offsetting criteria to settlement systems (such as central clearing house systems) which apply gross settlement mechanisms that are not simultaneous. These amendments are not expected to impact the Bank’s financial position or performance and become effective for annual periods beginning on or after 1 January 2014. IFRS 9 Financial Instruments: Classification and Measurement IFRS 9, as issued, reflects the first phase of the IASB’s work on the replacement of IAS 39 and applies to classification and measurement of financial assets and financial liabilities as defined in IAS 39. The standard was initially effective for annual periods beginning on or after 1 January 2013, but Amendments to IFRS 9

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2.2 New and amended standards and interpretations (Continued)

Mandatory Effective Date of IFRS 9 and Transition Disclosures, issued in December 2011, moved the mandatory effective date to 1 January 2015. In subsequent phases, the IASB will address hedge accounting and impairment of financial assets. The adoption of the first phase of IFRS 9 will have an effect on the classification and measurement of the Bank’s financial assets, but will not have an impact on classification and measurements of financial liabilities. The Bank will quantify the effect in conjunction with the other phases, when the final standard including all phases is issued.

IFRIC 21 Levies IFRIC 21 provides guidance on when to recognise a liability for a levy imposed by a government, both for levies that are accounted for in accordance with IAS 37 'Provisions, Contingent Liabilities and Contingent Assets' and those where the timing and amount of the levy is certain.

The interpretation clarifies that an entity recognises a liability for a levy when the activity that triggers payment, as identified by the relevant legislation, occurs. It also clarifies that a levy liability is accrued progressively only if the activity that triggers payment occurs over a period of time, in accordance with the relevant legislation. For a levy that is triggered upon reaching a minimum threshold, the interpretation clarifies that no liability should be recognised before the specified minimum threshold is reached

This standard becomes effective for annual periods beginning on or after 1 January 2014 and has no impact on the financial statements of the Bank. IAS 36- Impairment of Assets (Amendment) -Disclosure requirements for the recoverable amount of impaired assets The amendments clarify the disclosure requirements about the recoverable amount of impaired assets if that amount is based on fair value less costs of disposal. The amendments clarify the IASB’s original intention: that the scope of these disclosures is limited to the recoverable amount of impaired assets that is based on fair value less costs of disposal.

These improvements are effective for annual periods beginning on or after 1 January 2014.

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2013 2012 K'000 K'000

3. Profit before tax Profit before tax is stated after charging Auditors remuneration 109 95 Depreciation and amortisation 3,053 2,527 Directors fees 140 84 4. Tax Income tax charge Based on results for the year 20,370 8,319 Deferred tax 35 363

Under provision in prior year - (327) 20,405 8,355 Income tax payable Payable in respect of current year 20,370 8,319 Over provision in the prior year (6,136) -419 Withholding tax on deposits/treasury bills - 2,736 Payable in respect of previous year 6,403 8,014 20,637 18,650

Less: Tax paid (9,267) (9,511) Withholding tax on treasury bills (3,621) (2,736)

At end of year 7,749 6,403 Deferred tax At 1 January 609 246 Movement during the year 35 363 At 31 December 644 609 5. Cash on hand Cash domestic currency 6,644 3,679 Foreign currency on hand 3,979 2,058 10,623 5,737 6. Balances with Central Bank Statutory deposit account 196,428 127,127 Current account 493,808 487,366 690,236 614,493

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BANK OF CHINA ZAMBIA LIMITED NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2013 7. Cash and short term funds of non group bank 2013 2012 K’000 K’000 Deposits held with commercial banks: Within Zambia 2,131 2,482 Abroad 598,621 412,994 600,752 415,476 8. Treasury bills held to maturity Within less than three months 137,452 80,261 Between three months and one year 396,592 102,202 534,044 182,463 9. Cash and short term funds-group banks Bank of China-Guangdong CNY 267 8,537 Bank of China-Hongkong USD 5,751 9,480 Bank of China-Frankfurt EUR 1,601 2,016 Bank of China-New York USD 455,345 126,457 Bank of China-Johannesburg USD 3,583 2,393 Bank of China-Johannesburg ZAR 373 307 Bank of China-London USD 3,541 2,649 Bank of China-London CNY 17,177 11,844 Bank of China-Head Office USD 4,780 11,467 Bank of China-Shanghai CNY 113 7,056 Bank of China-Hongkong CNY 26,221 16,573 518,752 198,779 10. Loans and Advances-group banks Bank of China-London 341,930 258,750 Bank of China-Guangdong - 155,250 341,930 414,000

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BANK OF CHINA ZAMBIA LIMITED NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2013 2013 2012 11. Loan and advances-Customers K’000 K’000 Obligations from staff 29 152 Obligations from corporate customers 261,088 136,216 Gross advances-Customers 261,117 136,368 Repayable: - Less than three months 4,109 14,038 - Three months to one year 158,948 122,179 - One to five years - 151 - Over five years 98,060 - Gross advances(as above) 261,117 136,368

Allowance for losses on loans and advances (1,956) (1,288) 259,161 135,080 Allowances for losses on loans and advances Balance at 1 January 1,288 214 Impairment losses recognised: Amounts released - - Recoveries 668 1,074 At 31 December 1,956 1,288 12. Other assets Accrued income receivable 31,814 8,984 Prepayments 5,373 5,454 37,187 14,438 13. Investments Investment in Zambia Electronic Clearing House 203 190

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14. property, plant and equipment Motor Furniture Computer Buildings vehicles &fittings Equipment Total Cost K'000 K'000 K'000 K'000 K'000 At 1 January 2012 5,614 2,926 2,198 858 11,596 Additions - 491 165 656 Transfers - (289) (28) (29) (346) At 31 December 2012 5,614 2,637 2,661 994 11,906 Additions - 1,204 200 568 1,972 At 31 December 2013 5,614 3,841 2,861 1,562 13,878 Depreciation At 1 January 2012 560 834 328 198 1,920 Charge for the year 182 543 549 187 1,461 Transfers - (289) (28) (29) (345) At 31 December 2012 741 1,089 849 357 3,036 Charge for the year 183 660 494 262 1,599 At 31 December 2013 924 1,749 1,343 619 4,635 Net Book Value At 31 December 2013 4,690 2,092 1,518 943 9,243 At 31 December 2012 4,873 1,548 1,812 637 8,870

2013 2012 15. Share capital. K'000 K'000 Authorised, issued and fully paid 230,290,000 (2012: 9,490,000) shares of K 2.00 each 460,580 18,980

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16. Reserves Revenue Statutory Total reserves reserves K'000 K'000 K'000 At 1 January 50,554 18,980 69,534 Tax adjustment 6,136 - 6,136 Profit for the year 36,553 - 36,553 Other comprehensive income - - - Total comprehensive income 36,553 - 36,553 Transfer to statutory reserves (18,276) 18,276 - At 31 December 74,967 37,256 112,223

The statutory reserve is established in accordance with Chapter (IV) Section 69 of the Banking and Financial Services Act, 1994 (as amended). This regulation stipulates that a bank shall set aside certain amounts of the net profit, before declaring any dividend and after due provision has been made for tax, until such a reserve equals the paid up share capital.

17. Due to group /other banks/ Financial Institutions 2013 2012 K’000 K’000

Bank of China, London/Barclays(Z)Limited/Nico Insurance 28,143 58,137

1.8 Demand and savings deposits Current deposit accounts 2,157,700 1,639,321 Savings deposit accounts 99,165 65,445 2,256,865 1,704,766 19. Time deposits Kwacha deposits 9,724 - Foreign deposits 48,938 44,926 58,662 44,926

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20. Other liabilities 2013 2012 K’000 K’000 Inward remit 3,500 4,708 Bills payable 1,143 497 Margin deposits 63,778 70,862 Items in transit 42 685 Interest payable 209 46 Other payables 8,593 9,373 77,265 86,171 21. Contra accounts

In common with other banks, the bank conducts business involving Letters of Credit and Guarantees. This facility is offset by corresponding obligations of third parties.

Letters of credit 26,708 6,652 Letter of guarantee 983,631 565,985 1,010,339 572,637

22. Analysis of the balances in cash movement as shown in the statement of 2013 2012 in the year financial position K'000 K'000 K'000 Cash on hand 10,623 5,737 4,886 Balance with Central Bank 690,236 614,493 75,743 Cash and short term funds at non group

banks 600,752 415,476 185,276

Cash and short term funds-group banks 518,752 198,779 319,973 Loans & advances-group banks 341,930 414,000 (72,070) 2,162,293 1,648,485 513,808 23. Capital commitments

There were no capital commitments as at 31 December 2013 and 2012.

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BANK OF CHINA ZAMBIA LIMITED NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2013 24. Holding company

The holding company of Bank of China Zambia Limited is Bank of China Limited, a company incorporated in China.

25. Currency of the financial statements

These financial statements are presented in Zambian Kwacha.

26. Subsequent events

The directors are not aware of any other matter or circumstance since the financial year end and the date of this report, not otherwise dealt with in the financial statements, which significantly affects the financial position of the bank and the results of its operation.

2013 2012 27. Interest income K'000 K'000 Interest and similar income Money Market Placements 14,864 11,176 Government Securities 46,807 15,621 Loans and advances 7,282 4,645 68,953 31,442 Interest expenses and similar charges Customer deposits 912 1,099 Placements 806 36 1,718 1,135 Net interest income 67,235 30,307 Net fee and commission income Fee and commission income Fee and commission income 38,144 30,349 Fee and commission expense Commission paid 1,550 555 Net fee and commission income 36,594 29,794

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BANK OF CHINA ZAMBIA LIMITED NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2013 28. Critical accounting estimates and judgements in applying accounting policies

The bank makes estimates and assumptions that affect the reported amounts of assets and liabilities within the next financial year. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

29. Gains less losses from dealing in foreign

currencies

2013 2012 K'000 K'000 Exchange losses 2,048 933 30. Operating expenses Auditors' remuneration-Audit fee 109 95 Depreciation 3,053 2,527 Directors' fees 140 84 Other operating expenses 18,872 16,018 Staff expenses 24,199 19,240 46,373 37,964 31. Staff expenses NAPSA contributions 93 68 Salaries and allowances 18,410 15,639 Other staff costs 5,696 3,533 24,199 19,240 The average number of employees during the year

ended 31 December 2013 was 43 (2012 – 43)

32. Cash in hand and balances with banks Cash in hand 10,623 5,737 Bank of Zambia - Current accounts 493,808 487,366 - Special deposit 196,428 127,127 Other accounts 1,119,505 614,255 1,820,364 1,234,485

26

BANK OF CHINA ZAMBIA LIMITED NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2013 33. Statutory deposits with Bank of Zambia 2013 2012 K'000 K'000 Local currency:-Current Accounts and Time

Deposits

46,889

27,689 Foreign currency:- Current accounts and time

deposits

149,539

99,438 196,428 127,127 The statutory deposits held with Bank of Zambia,

as a minimum reserve requirement, are not available for the bank’s daily business. The reserve represents a percentage of the bank’s local currency and foreign currency liabilities to the public as required by the Banking and Financial Services Act. This, at 31 December 2013 was x% (2012:5%).

34. Currency translation difference Balance at 31 December - - 35. Cash and short term fund with non group

banks

Standard Chartered Bank-London 238,646 195,471 Standard Chartered Bank-Lusaka 2,130 2,482 Citibank-New York 359,976 217,523 600,752 415,476 36. Customer deposits Current accounts and time deposits Repayable:- - On demand 2,256,865 1,704,766 With agreed maturity dates or periods of notice by residual maturity - Three months or less 58,662 37,658 - Between Three months and one year - 21,493 2,315,527 1,749,692

27

BANK OF CHINA ZAMBIA LIMITED NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2013 37. Related party transactions

The bank has a related party relationship with its parent bank, related banks in Bank of China, directors and senior management. There were no transactions with related parties except for certain financing arrangements within group transactions and with directors and senior management (see below)

Directors and senior management 2013 2012 remuneration K’000 K’000 Salaries 18,410 15,639 Directors fees 140 84 18,550 15,723

Loans Loans to officers of the bank who are directors or members of senior management are made on the same terms as those to other employees of the bank. As at 31 December 2011 there were no loans (2010 – K Nil million) owing by such directors who are employees.

38. Fair value information

The carrying amounts of financial assets and liabilities are representative of the bank’s position at 31 December 2013 and are in the opinion of the directors not significantly different from their respective fair values due to generally short periods to maturity dates. Fair values are generally determined using valuation techniques or where available published price quotations form active market. The following summarises the major methods and assumptions used in estimating fair values. Loans and advances Fair values for loans and advances to customers are calculated based on the discounted expected future principal and interest cash flows taking into account changes in credit status of loanees since the loans were made and any indication of impairment. Bank and customer deposits For demand and fixed term deposits fair value is taken to be the amount payable on demand at the statement of financial position date. The value of long term relationships with depositors is not taken into account in estimating fair values.

28

BANK OF CHINA ZAMBIA LIMITED NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2013 39. Risk management

The most important types of financial risk to which the bank is exposed are credit risk, liquidity risk and market risk. Market risk includes currency risk and interest rate risk. There is a comprehensive risk management reporting structure to the bank’s group management responsible for risk. The group has a co-ordinated approach to all aspects or risk. Liquidity risk Liquidity risk arises in the general funding of the bank’s activities and in the management of the resulting positions. It includes both the risk of being unable to fund assets at appropriate maturities and rates and the risk of being unable to liquidate an asset at a reasonable price and within an appropriate time frame. The responsibility for asset and liability management policies lies with the Asset and Liability Committee (ALCO) whose members include the bank’s Executive Directors and selected senior management staff. ALCO oversees the management of the bank’s capital, the size and composition of the bank’s statement of financial position and liquidity. Policies are within guidelines set by the Group. Liquidity management is directed towards ensuring that all the bank’s operations can meet their funding needs, whether this is to replace existing funding as it matures, or is withdrawn, or to satisfy the demands of customers for additional borrowings. The concentration of funding requirements at any one date or from any one source is managed continuously. A substantial proportion of the bank’s deposit base is made up of current accounts and other short term customer deposits.

Market risk Market risk arises from open positions in interest rate, currency and equity products, all of which are exposed to general and specific market movements. All businesses in the bank operate within market risk management policies that are set by the Group. Limits have been set to control the bank’s exposure to movements in prices and volatilities arising from trading, lending, deposit taking and invest decisions.

29

BANK OF CHINA ZAMBIA LIMITED NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2013 39. Risk management (Continued)

Value at risk (VAR) The bank measures the risk of losses arising as a result of potential adverse movements in interest and exchange rates daily. The limits based on historical utilisation are recommended by the local ALCO and approved by Bank of China Risk management on an annual basis. In addition to the close supervision of trading activities by senior management, there are limits on the size of positions and concentrations of instruments as well as stress testing of certain product groups and currencies. The bank regularly stress tests its main portfolios to identify any exposure to low probability events that may not be highlighted by other measures. Interest risk exposure The bank’s operations are subject to the risk of interest rate fluctuations to the extent that interest earning assets (including investments) and interest bearing liabilities mature or reprise at different times or in differing amounts. In the case of floating rate assets and liabilities the bank is also exposed to basis risk, which is the difference in reprising characteristics of the various floating rate indices.

30

BANK OF CHINA ZAMBIA LIMITED NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2013 39. Risk management (Continued) 39.1 Liquidity risk Up to 1-3 3-6 6-12 1-3 Up to 1 Month Months Months Months Years 3 years Total ASSETS K'million K'million K'million K'million K'million K'million K'million Notes and Coins 11 - - - - - 11 Balances with BOZ 690 - - - - - 690 Balances with Domestic Institutions 2 - - - - - 2 Balances with Foreign Institutions 1,117 342 - - - - 1,459 Investments in securities 46 91 142 255 - - 534 Loans and advances - 2 45 114 - 98 259 Other assets - 38 - - - 9 47 - Total assets 1,866 473 187 369 - 107 3,002 Liabilities and shareholders’ funds Deposits 2,257 57 - - - - 2,314 Bills of exchange 1 - - - - 1 Other liabilities 107 - - 7 - - 114 Shareholders’ funds - - - - 573 - 573 - Total liabilities&shareholders' funds 2,365 57 - 7 573 - 3,002 Net liquidity Gap (499) 416 187 362 (573) 107 - Cumulative liquidity Gap (499) (83) 104 466 (107) - -

31

BANK OF CHINA ZAMBIA LIMITED NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2013 39. Risk management (Continued) 39.2 Interest rate risk

Zero Rate Floating Rate 0-3 3-6 6-9 9-12 Over 12

Instrument Instrument Months Months Months Months Months Total ASSETS K'million K'million K'million K'million K'million K'million K'million K'million Notes and Coins 11 - - - - - - 11 Balances with Bank of Zambia 690 - - - - - - 690 Balances with Domestic Institutions 2 - - - - - - 2 Balances with Foreign Institutions 1,117 - 342 - - - - 1,459 Investments in Securities - - 137 142 137 118 - 534 Loans and Advances - - 2 45 - 114 98 259 Other Assets 47 - - - - - - 47 - Total assets 1,867 - 481 187 137 232 98 3,002 Liabilities and shareholders’ funds Deposits 2,257 - 57 - - - 2,314 Bills of Exchange 1 - - - - - - 1 Other Liabilities 87 - 27- - - - - 114 Shareholders’ Funds 573 - - - - - - 573 Total liabilities and shareholders' funds 2,918 - 84 - - - - 3,002

Asset Liability Gap (1,051) - 397 187 137 232 98 - Cumulative Gap (1,051) - (654) (467) (330) (98) - -

32

BANK OF CHINA ZAMBIA LIMITED NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2013 39. Risk management (Continued) 39.3 Financial Assets and Liabilities

Between one

Between three

Less than one and three months

and Between one

and Total month months one year five years

Financial assets K'000 K'000 K'000 K'000 K'000 Cash and balances at Bank of Zambia 700,859 700,859 - - - Cash and short term funds - group banks 860,682 518,752 341,930 - - Cash and short term funds at non group banks 600,752 600,752 - - - Held to maturity 534,044 46,471 90,981 396,592 - Loans and advances 261,117 1,330 2,779 158,948 98,060 Property and equipment 9,243 - - - 9,243 Investments 203 203 - - - Prepayments, accrued income and other receivable 35,231 - 35,231 - - 3,002,131 1,868,368 470,921 555,540 107,303 Financial liabilities Amounts payable to other banks or financial institutions 28,143 28,143 - - - Customer accounts 2,315,527 2,256,865 58,662 - - Tax payable 7,749 7,749 - - - Deferred tax 644 - - - 644 Accruals and other payables 77,265 34,055 40,938 2,272 - Share capital 460,580 - - - 460,580 Statutory reserves 37,256 18,276 - - 18,980 Revenue reserves 74,967 74,967 - - - 3,002,131 2,420,055 99,600 2,272 480,204

33

BANK OF CHINA ZAMBIA LIMITED NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2013 39. Risk management (Continued) The effective interest rates for principal financial assets and liabilities averaged as follows:- 2013 2012 ZMK USD ZMK USD % % % % Government bonds held in maturity - - - - Treasury bills held to maturity 11.85 - 9.92 - Originated loans - 4.26 6.90 4.46 Originated advances - - - - Staff mortgages and other loans 10.15 - 10.18 - Placements with other banks 0.05 - 0.01 Customer deposits 0.05 0.06 - Operational risk management Operational risks are also managed within a policy framework set by the directors. The policy sets minimum standards and requires the bank to identify and address potential and actual operational risks on a continuing basis. The senior management team, receive regular updates on all critical operational risk issues. The implementation of operational risk policy is subject to regular audit and underpins corporate governance. Currency risk The bank is exposed to currency risk through transactions in foreign currencies. The bank’s transactional exposures give rise to foreign currency gains and losses that are recognised in the statement of comprehensive income. These exposures comprise the monetary assets and monetary liabilities of the bank, as follows: 31 December 2012 USD ZAR Euro Others Total Monetary K'000 Assets 1,166,772 307 2,016 87,807 1,256,902 Liabilities 1,166,214 355 2,120 88,141 1,256,831 Net position 558 (48) (104) (334) 71 31 December 2013 USD ZAR Euro Others Total Monetary K'000 Assets 1,728,349 373 1,601 144,323 1,874,646 Liabilities 1,726,780 378 1,354 144,327 1,872,839 Net position 1,569 (5) 247 (4) 1,807 In respect of monetary assets and liabilities in foreign currencies that are not economically hedged, the bank ensures that its net exposure is kept to an acceptable level by buying and selling foreign currencies at spot rates when considered appropriate.

34

BANK OF CHINA ZAMBIA LIMITED NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2013 39. Risk management (Continued)

Credit risk The bank is subject to credit risk through its trading lending, and investing activities and in cases where it acts as an intermediary on behalf of customers or other third parties or issues guarantees. Policies and procedures for managing credit risk are determined by the bank’s Credit Policy Committee. The committee defines the procedures and limits for accepting credit risk. Credit risk associated with trading and investing activities is managed through the bank’s market risk management process. The bank’s primary exposure to credit risk arises through its loans and advances. The amount of credit exposure in this regard is represented by the carrying amounts of the assets on the statement of financial position. Concentrations of credit risk (whether on or off statement of financial position) that arise from financial instruments exist for groups of counterparties when they have similar economic characteristics that would cause their ability to meet contractual obligations to be similarly affected by changes in economic or other conditions.

Total on statement of financial position economic sector credit risk concentrations are presented in the table below:-

Credit risk 2013 2013 2012 2012 K'000 % K’000 % Mining and quarrying 119,841 46 47,260 35 Manufacturing - - 9,597 7 Restaurants and hotel 386 - 1,501 1 Others 140,891 54 78,010 57 261,117 100 136,368 100

The amounts reflected in the tables represent the maximum accounting loss that would be recognised at the statement of financial position date if counterparties failed completely to perform as contracted and any collateral or security proved to be of no value. The amounts, therefore, greatly exceed expected losses, which are included in the allowance for losses on loans and advances. The bank’s policy is to require suitable collateral to be provided by certain customers prior to the disbursement of approved loans. Collateral for loans, guarantees, and letters of credit is usually in the form of cash, inventory, property, etc.

35

BANK OF CHINA ZAMBIA LIMITED NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2013 2013 2012 K’000 K’000 40. Dividends proposed Proposed for approval at the Annual General Meeting Dividends for 2012 13,405 - Dividends for 2013 18,276 - 31,681 -

Appendix I BANK OF CHINA ZAMBIA LIMITED COMPUTATION OF CAPITAL POSITION as at 31 December 2013 K ‘million

Primary(tier 1) capital (a) Paid-up common shares 461 (b) Amount received pending allotment of shares (c) Eligible preferred shares (d) Contributed surplus (e) Retained earnings 75 (f) General reserves (g) Statutory reserves 37 (h) Minority interest(common shareholders’ equity) (i) Subordinated loan capital (j) Sub total 573

Less

(k) Goodwill and other intangible assets (l) Investments in unconsolidated subsidiaries and associates

(m) Lending of a capital nature of subsidiaries and associates (n) Holding of other banks' or financial institutions' capital instruments (o) Assets pledged to secure liabilities

Sub total(A)(items in to m) 573 other adjustments Provisions (note 1 appendix Ⅱ) Other assets (p) Sub total(b) (q) Total primary capital(j-p) 573

BANK OF CHINA ZAMBIA LIMITED Appendix II COMPUTATION OF CAPITAL POSITION as at 31 December 2013 K ‘million

Ⅱ Secondary(tier 2) capital

(a) Eligible preferred shares(regulations 13 and 17) (b) Eligible subordinated term debt(regulation 17(b)) (c) Eligible loan stock/capital regulation 17(b) (d) Revaluation reserves (regulation 17(a) (Maximum is 40%) (e) Other (regulation 17(c)) Sub total Ⅲ Eligible secondary capital

(The maximum amount of secondary capital is limited to 100% of primary capital)

Ⅳ Eligible total capital(I(q) +Ⅲ)

(Regulatory capital) 573 Ⅴ Minimum total capital requirement

10% of total on and off statement of financial position risk-weighted assets (as established in appendix III, K597 million) or K520 million whichever is higher

520

Ⅵ Excess(I +Ⅲ-Ⅴ) 53

Ⅶ Total regulatory capital Ratios 573

Tier 1 capital÷WRA=96 %( Minimum requirement 5%) Total eligible capital÷WAR=96%(Minimum requirement 10%)

RISK WEIGHTED CAPITAL RATIO Appendix III AS PER STATUTORY INSTRUMENT NO.184 OF 1995 for the year ended 31 December 2013 K'million

Amount(net of

allowances for losses)

Risk factor

Weight total

part 1-calculation of risk-weighted assets

Assets Notes and coins:- (a) Zambian notes &coins 7 0.00 - (b) Other notes &coins 4 0.00 -

Balances held with Bank of Zambia

(a) Statutory reserves 196 0.00 - (b) Other balances 494 0.00 -

Balances held with commercial banks in Zambia:-

(a) With residual maturity of up to 12 months 2 0.20 0

(b) With residual maturity of more than 12 months - 1.00 -

Balances held abroad:-

(a) With residual maturity of up to 12 months 1,459 0.20 292


Assets in transit (a) From other commercial banks - 0.50 - (b) From branches of reporting bank - 0.20 -


Amount(net of


Risk factor

Weight total

Investment in Debt Securities:- (a) Treasury bills 534 0.00 0.00

(b) Other government securities-bonds - 0.20 -

(c) Issued by local government units - 1.00 - (d) Private securities - 1.00 - Bills of exchange:-

(a) Portion secured by cash treasury bills - 0.00 -

(b) Other - 1.00 - Loans & Advances:-

(a) Portion secured by cash or treasury bills - 0.00 -

(b) Loans to or guaranteed by GRZ - 0.50 -

(c)

Loans repayment in instalments &secured by a mortgage on owner of occupied residential property

1

0.50

1

(d) Loans to or guaranteed by local government units 1.00 -

(e) Loans to parastatals 98 1.00 98 (f) All other loans(net or provisions) 162 1.00 162


Amount(net of


Risk factor

Weight total

Part 1-calculation of risk-weighted assets

Inter-bank advances &loans /advances guaranteed

by other banks

(a) With residual maturity of up to 12 months - 0.20 -


Bank premises(NBV) 5 1.00 5 Acceptances 1.00 - Other assets 40 1.00 40

Investment in equity of other companies - 1.00 -

Total risk-weighted assets(on statement of financial position) 3,002 597


Amount(net of


Risk factor

Weight total

Part 2-Off statement of financial position obligations

Letter of credit:- Sight import letters of credit - 0.20 -

Portion secured by Cash/Treasury Bills 27 - -

Standby letters of credit - 1.00 - Export letters of credit confirmed - 0.20 - Guarantees &indemnities

Guarantees of loans trade & securities - 1.00 -

Portion secured by Cash/Treasury bills 984 - -

Performance bonds - 0.50 -

Securities purchased under resale agreement - 1.00 -

Other contingent liabilities-bid bonds - 1.00 -

Net open position in foreign currencies* - 1.00 -

Sub total-risk weighted assets(off statement of financial position)

1,010 -

Total risk weighted assets(on and off statement of financial position) 4,012 597

Documents

F2013 Bank of Chinapic.bankofchina.com/bocappd/zambia/201506/P...Henry C Nondo 2014 Partner Lusaka 5 BANK OF CHINA (ZAMBIA) LIMTED STATEMENT OF COMPREHENSIVE INCOME for the year ended