11 YEARS OF PARTNERSHIP & SHARED PROSPERITY
‘A’ Class Institution Financial Licenced by Nepal Rastra Bank
11th FINANCIAL REPORT
2014/15
Board of Directors
Mr. Binaya Kumar Shrestha
Chairman
Mr. Mahesh GhimireDirector
Dr. Subarna Das ShresthaDirector
Mr. Bharat Bahadur Thapa
Director
Mr. Bharat Kumar Pokhrel Director
Mr. Tuk Prasad PoudelDirector
Sanima Bank
FINANCIAL REPORT 2014/15
Content
01 Our Vision/ Mission
01 Capital Structure
01 Shareholding Pattern
02 Profile
03 Management Team
04 Chairman’s Message
05 Financial Highlights
08 Director’s Report
14 Auditor’s Report
16 Financial Statement
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FINANCIAL REPORT 2014/15
Profile
Sanima, promoted by prominent and dynamic Non-Resident Nepalese (NRNs) Business-
man, commenced its operation in 2004 with the vision to mobilize resources for National
Development. Sanima has been able to establish itself as a "A" Class Commercial Bank and
has achieved the triumph to establish itself as a Strong & Reliable Commercial Bank in Nepal
.In the pursuit of sustainable growth, Sanima has 38 full-�edged branches within and
outside the Kathmandu Valley and has further plans to have more footprints in di�erent
parts of the country.
Ever since its inception, Sanima has o�ered one window �nancial solutions and customized
services to better suit the needs of the individual customer. Sanima is committed to exceed
customer expectations in all areas of its Business through consistent processes, innovations
and improvements. Every day, we’re proud to partner with many businesses, and communi-
ties, bringing them our skills and expertise to help make their �nancial lives better.
Sanima has always taken initiative for the wellbeing of the society and has been contribut-
ing especially towards the education sector. We assure our commitment to give continua-
tion to such a noble cause..
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FINANCIAL REPORT 2014/15
Management Team
Tej Bahadur ChandDeputy Chief Executive O�cer
Bhuvan Kumar DahalChief Executive O�cer
Pawan Kumar AcharyaChief-Project Financing O�cer
Bobby Singh GadtaulaChief-Operating O�cer
Manoj BhattaraiSenior Credit Risk Analyst
Priti SinghHead-Deposit Managemant Retail
Sudip Kumar HalwaiHead-Credit Risk Retail
Roshan Chandra GautamDeputy Cheif Operating O�cer
Bibhor JhaHead-Treasury Front O�ce
Saroj GuragainChief-Financial O�cer
Raju Krishna ShresthaDeputy Chief Operating O�cer
Tankamani BaralRegional Manager-Eastern Region
Anish PyakurelHead-Credit Admin & Recovery
Hitler ShresthaHead-Corporate Lending
Nichal Raj PandeyChief-Risk O�cer
Bikram ShresthaHead e-Banking & ISO
Ramila ShresthaHead-Human Resource
Sujeet DhakalChief-Retail Lending O�cer
Hem Raj SanjyalRegional Manager-Western Region
Sushil Ratna BajracharyaHead-Information Technology
Sushil Raj ShresthaHead-Institutional Deposit
Prakash KarkiSRM-Retail Lending
Narayan Prasad KhatiwadaHead-SME/Midsize Business
Niraj DhakalHead-Internal Audit
Rama KhadkaManager-Credit Risk Business
Sabina ShresthaHead-Trade Finance
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Chairman’s Message
04
Dear Shareholders,It gives me an immense pleasure to welcome our share-holders and guests to the 11th Annual General meeting of Sanima Bank Limited. Sanima is at its 12th year of establish-ment, 11th year of operation and fourth year of operation after its upgradation to commercial bank. Despite the tough competition in banking sector, Sanima has been able to build a successful image in the industry as the youngest bank. I take this opportunity to thank all the shareholders, customers, colleagues, well wishers, stake-holders and all the associated organizations.
Sanima has achieved NPR.624.10 million net pro�ts in 2014/15 which is 46% higher than the previous year. It has been proposed to provide 20% Bonus share and 1.05% Cash Dividend from the pro�ts.
As per the directive of Nepal Rastra Bank, Banks shall increase its Paid-Up Capital to 8 billion by Ashadn End 2072 through issuance of bonus shares and right shares. After distributing the Bonus Share in current �scal year, it is also proposed to �oat 50% right share for Capital increment.In order to enhance the reach to customers spread through Mechi to Mahakali, Sanima has brought into operation 38 branches. Furthermore, necessary steps are being taken to establish new branches in various locations.
Under Corporate Social Responsibility, Sanima has been extending its support in the sectors of education & health and has aimed for its continuity in future. Similarly, Sanima Patrakarita Purashkar worth Rs. Five Lakhs has also been established. Sanima has contributed to Prime Minister Relief Fund for earthquake victims and has been coordi-nating with concern bodies for the reconstruction of one of the earthquake a�ected school.The achievements and activities of the bank have been presented by board of directors in the annual report. As a chairman I want to inform you that Sanima will continu-ously attempt to provide better results with enhanced customer satisfaction. Bank has o�ered VISA cards. Similar-ly, a “New Core Banking System” purchasing process is in its �nal stage.
I express my sincere gratitude to shareholders and guests for your kind presence and look forward for your contin-ued support and cooperation. We would like to assure that your suggestions and recommendations will be guiding factors for us which shall be given due consideration as appropriate. I look forward for continued directions from Board of Directors, hard work from sta� members, trust and advice of shareholders and other well-wishers and concerned personnel.
Thank YouBinaya Kumar ShresthaChairman
“As a chairman I want to inform you that Sanima will continuously attempt to provide better results with enhanced customer satisfaction.”
Sanima Bank
FINANCIAL REPORT 2014/15
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Sanima Bank
05FINANCIAL REPORT 2014/15
Financial Highlights
2011 2012 2013 2014 2015
6.36 11.18
17.79
24.87
34.05
Deposit (Rs. Billions)
As at Mid-July
2011 2012 2013 2014 2015
6.44 9.64
15.25
20.62
28.59
Loans and Advances (Rs. Billions)
As at Mid-July
2011 2012 2013 2014 2015
0.92 2.11
3.85 3.72
7.74
Investments (Rs. Billions)
As at Mid-July 2011 2012 2013 2014 2015
9.36 13.72
21.98 29.38
40.30
Total Assets (Rs. Billions)
As at Mid-July
2011 2012 2013 2014 2015
2.11 2.13 2.42
2.83
3.43
Shareholder's Fund (Rs. Billions)
As at Mid-July
'10/11 '11/12 '12/13 '13/14 '14/15
355.46 418.58
655.53 818.72
1,139.39
Net Interest Income (Rs. Millions)
Fiscal Year
'10/11 '11/12 '12/13 '13/14 '14/15
255.21 242.43
516.79
750.11
1,045.13
OPBP (Rs. Millions)
Fiscal Year
'10/11 '11/12 '12/13 '13/14 '14/15
155.22 121.77
305.06
427.60
624.14
PAT (Rs. Millions)
Fiscal Year
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FINANCIAL REPORT 2014/15
0.004
0.479
0.027 0.017 0.073
2011 2012 2013 2014 2015
NPL to TL (%)
As at MId-July
28.41
20.74
14.87 12.54 11.08
2011 2012 2013 2014 2015
CAR (%)
As at MId-July
11.41
5.75
14.32
17.64
22.03
6.50 5.50
10.53 15.79
21.05
'10/11 '11/12 '12/13 '13/14 '14/15
ROE (%) DPS (%)
Fiscal Year
21 22 24 28
38
4 4 4 4
40
2011 2012 2013 2014 2015
No. of Branches No. of ATM
As at Mid- July
88%
6%
6%
Composition of Income
Interest
Forex
Others75%
10%
15%
Composition of Expenses
Interest
Personnel
Others
127 157 151 220
301 70 75 80
91
114
2011 2012 2013 2014 2015
Personnel Male Female
As at Mid-July
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FINANCIAL REPORT 2014/15
Director's Report
Sanima Bank08
FINANCIAL REPORT 2014/15
Respected Shareholders,Sanima has been able to generate pro�ts since its inception and despite the adverse economic circumstances prevailing since Earthquake of April 2015, it has been able to increase its revenue. It has also been able to strength-en its �nancial indicators. Board along with management team is putting their uninterrupted e�orts to further strengthen the indicators. We believe that the Bank will be able to deliver better returns to the stakeholders through better strategy, e�ective administration and e�cient performance.
Details Mid July 2015 Mid July 2014 Change (%)
Net Loans 28,264,051 20,371,444 39
Investment 7,744,240 3,715,503 108
Deposit 34,045,316 24,873,849 37
Bonus (Including Cash) (%) 21.05 15.79 5.26 Non Performing Loans (%) 0.07 0.02 0.05
Details FY 2014/15 FY 2013/14 Change (%)
Net Interest Income 1,139,390 818,718 39
Operating Profit (Before Provision) 1,045,134 750,106 39
Net Profit 624,141 427,596 46
During the year, the loan and advances of commercial banks increased by 22.44 percent whereas deposit mobiliza-tion increased by 20.83 percent. Compared to this our loans, deposits, operating income and net pro�t �gures have increased signi�cantly compared to overall industry.
B. Country's Macroeconomic Situation
According to the preliminary estimates of Central Bureau of Statistics (CBS), the real GDP at basic price is estimated to grow by 3.0 percent in �scal year 2014/15 compared to a growth of 5.1 percent in the previous year. In the review year, delay in monsoon, the devastating earthquake of April 25, 2015 and the subsequent aftershocks have signi�-cant negative impact in all the sectors of the economy resulting into a lower output growth. The total destruction of the earthquake is accounted one third of the real GDP of the 2014/15. The destruction made a loss of Rs. 36.0 billion in the GDP resulting around 1.6 percent shrinkage in the overall economy.
In the review year, the agriculture sector, which occupies around one third in GDP, is expected to grow by 1.9 percent and the non-agriculture sector by 3.6 percent. These sectors had grown by 2.9 percent and 6.3 percent respectively in the previous year.
A. Current Year Vs Previous Year Rs’000
The annual average unit value export price index based on customs data increased by 11.5 percent in 2014/15 compared to 12.4 percent rise in the previous year. The annual average unit value import price index based on customs data decreased by 1.0 percent in review year in contrast to 8.6 percent rise in the corresponding period of the previous year.
During the review year merchandise imports increased by 8.4 percent whereas exports decreased by 7.3 percent. During previous year such imports had gone up by 28.3 percent to Rs. 714.37 billion while exports had increased by 19.6 percent to Rs. 91.99 billion. Total trade de�cit during the review year grew by 10.8 percent to Rs. 689.37 billion compared to an increase of 29.7 percent in the previous year. Exports-imports ratio declined to 11.0 percent in the review year as a result of decrease in exports and increase in imports. Such a ratio had remained 12.9 percent in the previous year.
In 2014/15, the Government of Nepal, Department of Foreign Employment granted �nal approval to 0.51 million workers for foreign employment registering a decline of 2.8 percent to the previous year. The in�ow of workers' remittances increased by 13.6 percent to Rs. 617.28 billion in the review year compared to 25.0 percent growth of previous year. The net transfer receipt increased by 12.4 percent to Rs. 709.96 in the review year as compared to 26.9 percent in the previous year. The total foreign grants of Rs. 52.86 billion is received in the review year as compared to Rs. 48.52 billion in the previ-ous year. The overall BOP registered a record high surplus of Rs. 144.85 billion in 2014/15 compared to a surplus of Rs. 127.13 billion in the previous year.
In�ation The annual average consumer price in�ation increased by 7.2 percent in 2014/15 compared to an increase of 9.1 percent in 2013/14. The annual average indices of food and beverages group and non-food and services group increased by 9.6 percent and 5.2 percent respectively during the review year. Such indices had increased by 11.6 percent and 6.8 percent respectively in 2013/14.
Interest RateBoth the weighted average of 91-days Treasury Bill rate and inter-bank transaction rates have increased in the last month of 2014/15 compared to a year ago. The weighted average 91-days Treasury Bill rate increased to 0.1739 percent in the review month from 0.02 percent a year ago. The weighted average inter-bank transaction rate among commercial banks that was 0.16 percent a year ago reached 1.01 percent in the review month. Likewise, the weighted average inter-bank rate among other �nancial institutions increased to 3.89 percent from 2.40 percent a year ago.
Weighted average interest rate spread of commercial banks inched down to 4.61 percent in the review month from 5.21 percent a year ago and the average base rate came down to 7.88 percent from 8.36 percent a year ago.
Government DebtThe outstanding foreign loan of the Government of Nepal (GoN) stood at Rs. 342.96 billion in mid-July 2015. The outstanding domestic debt of the GoN declined from Rs. 201.82 billion at mid-July 2014 to Rs. 196.79 billion in mid-July 2015. Both external debt/GDP and domestic debt/GDP of the GoN has been declining in the last few years. Consequently, the total debt of the GoN to GDP ratio stood at 25.4 percent in 2014/15. Total debt servicing/revenue ratio, however, has increased to 18.7 percent in the review year. (Source: Nepal Rastra Bank)
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FINANCIAL REPORT 2014/15
Capital & Liabilities FY 2010/11 FY 2011/12 FY 2012/13 FY 2013/14 FY 2014/15 Share Capital 2,016,000 2,016,000 2,217,600 2,550,240 3,060,288 Reserves and Funds 102,690 113,580 206,431 283,157 370,406 Debentures and Bonds - - - - - Borrowings 658,000 88,250 1,480,126 898,268 1,687,185 Deposit Liabilities 6,356,737 11,178,734 17,789,329 24,873,849 34,045,316 Bills Payables - - - - - Proposed Cash Dividend 131,040 110,880 10,611 17,507 26,845 Income Tax Liabilities - - - - - Other Liabilities 98,913 215,022 272,444 753,964 1,111,157 Total Capital & Liabilities 9,363,380 13,722,466 21,976,539 29,376,986 40,301,197 Assets
Cash Balance 147,096 256,198 312,962 538,387 690,663 Balance with NRB 326,975 1,005,250 1,283,546 2,811,039 687,276 Balance with Banks/Financial Institutions 52,236 111,615 88,992 162,488 393,092 Money at Call and Short Notice 1,049,936 - 364,420 - - Investments 916,983 2,105,770 3,848,052 3,715,503 7,744,240 Loans Advances and Bills Purchase 6,371,324 9,531,505 15,093,073 20,371,444 28,264,051 Fixed Assets 361,072 479,044 469,489 502,236 614,772 Non-Banking Assets - - - - - Other Assets 137,758 233,084 516,005 1,275,889 1,907,104 Total Assets 9,363,380 13,722,466 21,976,539 29,376,986 40,301,197
C. Financial Summary a.Balance Sheet of Previous Five Years
During four years, net assets of the bank have increased from Rs. 9.36 billion to Rs. 40.30 billion. Similarly, net worth of the bank has increased from Rs. 2.10 billion to Rs. 3.43 billion.
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FINANCIAL REPORT 2014/15
Particulars FY 2010/11 FY 2011/12 FY 2012/13 FY 2013/14 FY 2014/15 Interest Income 1,038,457 1,172,200 1,678,790 2,018,506 2,548,884 Interest Expenses 683,000 753,617 1,023,257 1,199,788 1,409,494 Net Interest Income 355,456 418,584 655,532 818,718 1,139,390 Commission and Discount 4,949 11,251 23,668 39,825 53,468 Other Operating Income 34,806 42,947 68,853 85,438 131,295 Exchange Fluctuation Income 158 - 27,237 146,889 178,747 Total Operating Income 395,369 472,782 775,291 1,090,870 1,502,900 Employees Expenses 55,836 79,987 99,776 134,381 182,321 Other Overhead Expenses 84,325 150,193 158,730 206,382 275,446 Exchange Fluctuation Loss - 175 - - - Operating Profit Before Provision for Possible Loss 255,207 242,427 516,785 750,106 1,045,134
Provision for Possible Losses 13,272 52,493 57,846 95,212 119,441 Operating Profit 241,935 189,934 458,938 654,894 925,693 Non-operating Income/Expenses 348 678 2,571 21,566 7,344
Provision Written-Back 2,161 19,675 1,527 41,861 Profit from Regular Operations 244,444 190,613 481,185 677,987 974,899
Profit/Loss from extra-ordinary activities - - - (308) (609)
Net Profit after considering all activities 244,444 190,613 481,185 677,679 974,290
Provision For Staff Bonus 22,222 17,328 43,744 61,607 88,572 Provision For Income Tax 67,001 51,515 132,379 188,476 261,576 This Year's 67,105 51,892 129,195 183,428 259,346 Previous Year's 497 109 3,531 1,775 - Deferred Tax Expense/(Income) (601) (487) (347) 3,273 2,231
Net Profit/(Loss) 155,220 121,770 305,061 427,596 624,141
b. Pro�t/ Loss Statement of Previous Five years
During four years, net pro�t has increased from Rs. 155.2 million to Rs. 624.1 million.
D. Infrastructure 1. Branch expansionThe bank has expanded its branch network at Mahendranagar, Birtamod, Itahari, Dharan, lahan, Janakpur, Kalaiya, Bhairhawa, Birendranagar and Nayabazar ( shorakhutte) in fiscal Year 2014/15. Currently, the bank is operating with 38 full �edge branch-es. The bank will give continuity to branch expansion in future as well.
2. Information TechnologyIn order to manage the risks associated with expansion of business and for the purpose of ful�lling the need for advanced and scienti�c data analysis and MIS, revival of the core banking system (CBS) has been initiated and an Information Security o�cer has been appointed during the year. We have redesigned our website to facilitate the advance internet users. IT sta�s has been introduced to various training programs and seminars. Dhading and lalitpur district has been selected for the pilot phase of branchless banking. Also to minimize the IT risk, it has been planning to operate Highend Miltilayer Firewalls and Sophisticated Monitoring System in future.
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FINANCIAL REPORT 2014/15
Furthermore, bank has planned the following measures to enhance the IT facility;
a. ATM machines have been installed in all the branch premises and tourist spots such as Thamel and pokhara as well. Likewise, With the view to provide additional services to its customers Sanima Bank has brought into operation a self service KIOSK machine at the Head O�ce for the �rst time in banking industry. It has planned to add additional machines at other branches too.
b. Sanima has o�ered VISA debit card, VISA dollar debit card and VISA prepaid Travel card. Further, it has been planned to enhance these facilities in near future.
c. Sanima has introduced its Mobile Banking App in Nepali language which is also the �rst Mobile Banking App in Nepali language. Also, free WI-FI service from all of its branches has been initiated to further facilitate the customers' need.
E. Human Resource DevelopmentAt the end of �scal year 2014/15, the total numbers of sta�s working in Sanima were 415. In order to develop and train its current human resource, the bank has initiated various internal and external trainings. 14 sta�s have already participated in the interna-tional level training, seminars and workshops. Employee remuneration has been increased along with the increment in the pro�t and market scenario. In order to provide a positive impact on the work performance and motivation of employees, Performance based Incentive Scheme will be further enhanced. Star Performance Excellence Award has also been established.
F. Remittance In order to provide better and more reliable remittance services and to serve a wide array of customers living in Nepal and abroad, the bank has started its own remittance service – Sanima X- press. In a continuous e�ort to expand its services, Bank has entered into an agreement with Deniba International Exchange (UAE), Joyalukkas Exchange (UAE), Economics Exchange Center (UAE & Uk) situated in Dubai and HANA Bank situated in South Korea. With this, Nepalese staying in Dubai, UK and South Korea can remit money easily and safely via Sanima Xpress. The reach of Sanima X-press will be made broader in future to avail this service from other countries as well.
G. Industrial and Business RelationshipSanima has maintained an excellent industrial and business relation in national and international areas. Continuous e�orts shall be made to strengthen the relationship with our customers and sta�s at all level. We have also been able to maintain excellent relationship with banks of India, China, America, Europe, Australia, Dubai, Korea etc.
H. Corporate Social ResponsibilityHaving felt the need for corporate social responsibility, Sanima bank has especially contributed to the needy in the sectors of education, employment and health. Currently, the scholarship program is being provided from all the branches outside Kathman-du valley to altogether 74 needy students.
Bank has also contributed Rs 111,111/- for the victim of devastating earthquake of April 25, 2015. Financial contribution has been made to the conference regarding minimization of �nancial crisis caused by the earthquake where foreign diplomats and execu-tives were also involved. Similarly, bank aims at establishing a school a�ected by the earthquake. From the head o�ce and branch-es various following activities had been done in the assessment year.
1. Blood donation program from Gongabu, New Road, Kalanki and outside valley branches Pokhara, and Nepalgunj Branches2. Free health check up campaign from Narayangarh and Chitwan Branches3. Clothes distribution program at Purbanchal Anathsharam from Biratnagar Branch4. Conducted tra�c awareness program from Ghorahi and Dang Branches5. Free eye check-up campaign at Pokhara Branch
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FINANCIAL REPORT 2014/15
I. Corporate governanceWe have considered ‘corporate Governance’ as an integral part for the long-term success of our overall system. As guided and specified by Nepal Rastra Bank, various committees and sub-committees have been functioning in the bank. They are highly committed for management of various risks. We are always trying our best to deepen the long-term relationship with regulatory authority, customers and stakeholders through corporate governance.
J. Internal Control SystemA structure has been designed to regulate the �nancial activities of bank by complying with the existing laws and directives of Nepal Rastra bank. Chief Risk O�cer (CRO), along with his team, is responsible for overall risk management of the Bank which includes managing, assessing, identifying, monitoring and reducing pertinent global, macro and micro-economic level business risks that could interfere with Banks objective and goals and whether the Bank is in substantial compliance with its internal operating policies and other applicable regulations and procedures, external, legal, regulatory or contractual requirements on a continuous basis. Further, CRO ensures integration of all major risk in capital assessment process. Similarly, board of directors has been analyzing the e�ectiveness of internal control system by reviewing the reports issued by external audit and regulators (on inspection). Apart from this, several committees of bank management such as management committee, assets- liabilities management committee, risk management committee, internal audit department and compliance are also actively involved for the electiveness of internal control system.
K. Achievement of current �scal year & Future PredictionSanima has been able to generate operation pro�t & net pro�t of NPR 210.7 million & NPR 130.1 million respectively in the �rst two months of current �scal year. Similarly, in the coming year, our e�ort will be on balanced growth guided by core principles, liquidity & capital and managing risk in a disciplined way. Though ROE of the bank in expected to decrease in relation to the increased paid-up capital, we have aimed for the overall increment in pro�t, loans and deposits. Focus on individual deposit mobilization and retail banking will be increased. Also, Sanima Bank is poised to establish "Sanima Capital Limited" to provide services related to Merchant Banking, Mutual Funds, Depository participant etc.
L. Changes in Board of Directors and ElectionPublic shareholders representative Mr. Bharat Kumar Pokharel and Mr. Mahesh Ghimire has been elected unanimously as the member of board of directors.
M. Right Share IssuanceAs per the Nepal Rastra Bank Directives regarding increment of paid up capital by commercial banks to 8 billion, Sanima Bank has planned to increase its Paid-Up Capital through issuance of bonus and right share and has also submitted its Capital Plan to NRB in this regard. Proposal has also been made for distribution of 50% right share (2:1) in current �scal year as per the Capital Plan.
N. Auditors' AppointmentT.R Upadhyaya and Co., Chartered Accountants was appointed as Statutory Auditor for �scal year 2014/15. As per the recommen-dation of Audit Committee, consent is sought from the shareholders to reappoint T.R upadhyaya and Co., Chartered Accountant for FY 2015/16 as well.
At last, on behalf of board of directors, I would like to extend my heartfelt thanks to shareholders, customers, ,Nepal Govern-ment’s a�liates, Nepal Rastra Bank, security board, o�ce of company registrar, Nepal stock exchange limited, external auditor, media personalities & well-wishers for yours valuable suggestions and continued support.
Thank youOn behalf of Board of Directors
Binaya Kumar ShresthaChairman
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FINANCIAL REPORT 2014/15
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FINANCIAL REPORT 2014/15
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FINANCIAL REPORT 2014/15
Sanima Bank
FINANCIAL REPORT 2014/1516
Schedule Current Year Rs. Previous Year Rs.1 Share Capital 1 3,060,288,000 2,550,240,000 2 Reserves and Funds 2 370,405,691 283,157,025 3 Debentures and Bonds 3 - - 4 Borrowings 4 1,687,185,281 898,267,865 5 Deposit Liabilities 5 34,045,316,291 24,873,849,358 6 Bills Payables 6 - - 7 Proposed Cash Dividend 26,844,632 17,507,368 8 Income Tax Liabilities9 Other Liabilities 7 1,111,157,482 753,964,168
40,301,197,377 29,376,985,784
Schedule Current Year Rs. Previous Year Rs. 1 Cash Balance 8 690,663,251 538,387,165 2 Balance with NRB 9 687,276,091 2,811,039,229 3 Balance with Banks/Financial Institutions 10 393,091,554 162,487,861 4 Money at Call and Short Notice 11 - - 5 Investments 12 7,744,240,384 3,715,502,824 6 Loans Advances and Bills Purchase 13 28,264,050,734 20,371,443,968 7 Fixed Assets 14 614,771,604 502,235,767 8 Non-Banking Assets 15 - - 9 Other Assets 16 1,907,103,759 1,275,888,970
40,301,197,377 29,376,985,784
Contingent Liabilities ScheduleDirectors' Declaration ScheduleStatement of Capital Fund ScheduleStatement of Risk Weighted Assets SchedulePrincipal Indicators SchedulePrinciple Accounting Policies ScheduleNotes to Accounts ScheduleStatement of Loan taken by Promotors Schedule
Schedule
Schedules 1 to 17, 32 and 33 form integral parts of the Balance Sheet
35
30(Ka 1)
30 (Kha, Ga, Gha, Nga)
Balance Sheet As on July 16, 2015 (Ashadh 31, 2072)
Capital & Liabilities
31
Comparision Between Unaudited and Audited Financials
Total Capital Liabilities
17
29
Assets
Total Assets
34
33
32
Binaya Kumar ShresthaChairman
DirectorsTuk Prasad Poudel
Dr. Subarna Das ShresthaBharat Kumar Pokhrel
Mahesh GhimireBharat Bahadur Thapa
Bhuvan DahalChief Executive Officer
Saroj GuragainChief Financial Officer
As per our report of even date
Shashi SatyalManaging Partner
T.R. Upadhya & Co.Chartered Accountants
Date : 2nd September 2015 (16 Bhadra 2072)Place : Kathmandu
Sanima Bank
FINANCIAL REPORT 2014/1517
Binaya Kumar ShresthaChairman
DirectorsTuk Prasad Poudel
Dr. Subarna Das ShresthaBharat Kumar Pokhrel
Mahesh GhimireBharat Bahadur Thapa
Bhuvan DahalChief Executive Officer
Saroj GuragainChief Financial Officer
As per our report of even date
Shashi SatyalManaging Partner
T.R. Upadhya & Co.Chartered Accountants
Schedules Current Year Rs. Previous Year Rs.
1. Interest Income 18 2,548,883,528 2,018,505,630
2. Interest Expenses 19 1,409,493,594 1,199,787,864
1,139,389,934 818,717,766
3. Commission and Discount 20 53,468,424 39,824,742
4. Other Operating Income 21 131,295,145 85,437,840
5. Exchange Fluctuation Income 22 178,746,935 146,889,410
1,502,900,437 1,090,869,758
6. Employees Expenses 23 182,320,716 134,381,010
7. Other Overhead Expenses 24 275,445,593 206,382,340
8. Exchange Fluctuation Loss 22 - - 1,045,134,128 750,106,408
9. Provision for Possible Losses 25 119,440,925 95,212,477
925,693,203 654,893,931
10. Non-operating Income/Expenses 26 7,344,065 21,565,934
11. Provision Written-Back 27 41,861,232 1,527,112
974,898,501 677,986,977
12. Profit/Loss from extra-ordinary activities 28 (608,998) (308,370)
974,289,503 677,678,607
13. Provision For Staff Bonus 88,571,773 61,607,146
14. Provision For Income Tax 261,576,432 188,475,856
This Year's 259,345,919 183,428,099
Previous Year's - 1,774,809
Deferred Tax Expense/(Income) 2,230,513 3,272,948
624,141,298 427,595,604
Schedule No. 18 to 28 form intergral part of this Profit and loss Account.
Net Profit after considering all activities
Profit from Regular Operations
Operating Profit
Total Operating Income
Net Profit/(Loss)
Profit and Loss AccountFor the period from July 17, 2014 to July 16, 2015 (Shrawan 01, 2071 to Ashadh 31, 2072)
Particulars
Net Interest Income
Operating Profit Before Provision for Possible Loss
Date : 2nd September 2015 (16 Bhadra 2072)Place : Kathmandu
Schedules Current Year Rs. Previous Year Rs.
1 Accumulated Profit up to the Last Year(Restated) 28,339,535 27,166,558 2 Current Year's Profit 624,141,298 427,595,604 3 Exchange Fluctuation Fund - - 4 Share Premium 10,563,747
663,044,580 454,762,162
1 Accumulated Loss up to the Last Year - - 2 This Year's Loss - - 3 General Reserve 124,828,260 85,535,283 4 Contingent Reserve - - 5 Institutional Development Fund - - 6 Dividend Equalization Fund - - 7 Employee Related Reserves Funds - - 8 Proposed Dividend 26,844,632 17,507,368 9 Proposed Issue of Bonus Shares 510,048,000 332,640,000 10 Special Reserve Fund - - 11 Exchange Fluctuation Fund - 539,976 12 Capital Redemption Reserve Fund - - 13 Capital Adjustment Fund - - 14 Deferred Tax Reserve - - 15 Investment Adjustment Reserve - (9,800,000)
661,720,891 426,422,627 15 Accumulated Profit/(Loss) (A-B) 1,323,688 28,339,535
Profit and Loss Appropriation AccountFor the period from July 17, 2014 to July 16, 2015 (Shrawan 01, 2071 to Ashadh 31, 2072)
Particulars
Income
Total (A)
Total (B)
Expenses
Sanima Bank
FINANCIAL REPORT 2014/1518
Binaya Kumar ShresthaChairman
DirectorsTuk Prasad Poudel
Dr. Subarna Das Shrestha Bharat Kumar Pokhrel
Mahesh GhimireBharat Bahadur Thapa
Bhuvan DahalChief Executive Officer
Saroj GuragainChief Financial Officer
As per our report of even date
Shashi SatyalManaging Partner
T.R. Upadhya & Co.Chartered Accountants
Date : 2nd September 2015 (16 Bhadra 2072)Place : Kathmandu
Sanima Bank
FINANCIAL REPORT 2014/1519
Binaya Kumar ShresthaChairman
DirectorsTuk Prasad Poudel
Dr. Subarna Das Shrestha Bharat Kumar Pokhrel
Mahesh GhimireBharat Bahadur Thapa
As per our report of even date
Shashi SatyalManaging Partner
T.R. Upadhya & Co.Chartered Accountants
Bhuvan DahalChief Executive Officer
Saroj GuragainChief Financial Officer
Date : 2nd September 2015 (16 Bhadra 2072)Place : Kathmandu
Current Year Rs. Previous Year Rs.(a) Cash flow from Operating Activities 808,451,847 558,748,159 1 Cash Received 2,875,557,696 2,295,352,616
1.1 Interest Income 2,503,453,593 2,005,237,673 1.2 Commission and Discount Income 53,468,424 39,824,742 1.3 Income from Foreign Exchange Transaction 182,265,837 144,729,506 1.4 Recovery of Written-off Loans - - 1.5 Other Incomes 136,369,843 105,560,695 2 Cash Payment 2,067,105,850 1,736,604,457
2.1 Interest Expenses 1,406,541,979 1,245,186,788 2.2 Staff Expenses 182,320,716 143,059,418 2.3 Office Overhead Expenses 202,912,829 150,170,448 2.4 Income Tax Paid 275,330,326 198,187,803 2.5 Other Expenses
174,303,666 893,372,725 (Increase)/Decrease of Current Assets (9,149,123,419) (5,724,959,760)
1 (Increase)/Decrease in Money at Call and Short Notice - 364,420,000 2 (Increase)/Decrease in Short-term Investments (576,174,138) 33,824,123 3 (Increase)/Decrease in Loans and Advances and Bills Purchase (7,967,720,245) (5,372,226,484) 4 (Increase)/Decrease in Other Assets (605,229,036) (750,977,398)
Increase/(Decrease) of Current Liabilities 9,323,427,085 6,618,332,484 1 Increase/(Decrease) in Deposits Liabilities 9,171,466,933 7,084,520,443 2 Increase/(Decrease) in Certificate of Deposits - - 3 Increase/(Decrease) in Short-term Borrowings (96,202,405) (929,697,595) 4 Increase/(Decrease) in Other Liabilities 248,162,556 463,509,636
(b) Cash flow from Investment Activities (3,605,239,790) 24,292,855 1 (Increase)/Decrease in Long-Term Investment (3,452,310,584) 98,895,488 2 (Increase)/Decrease in Fixed Assets (185,068,601) (88,958,832) 3 Interest Income From Long-Term Investment 30,479,026 13,221,491 4 Dividend Income 1,660,370 1,134,709 5 Others
(c) Cash flow from Financing Activities 885,119,821 347,839,931 1 Increase/(Decrease) in Long-Term Borrowings (Bonds, Debentures etc.) - - 2 Increase/(Decrease) in Share Capital - - 3 Increase/(Decrease) in Other Liabilities - - 4 Increase/(Decrease) in Refinance/Facilities From Nepal Rastra Bank 885,119,821 347,839,931
(d) Income/Expenses from change in Exchange Rate in Cash and Bank Balances (3,518,902) 2,159,904
(e) This Year's Cash Flow from All Activities (1,740,883,359) 1,826,413,573 (f) Opening Balance of Cash and Bank Balances 3,511,914,255 1,685,500,681 (g) Closing Balance of Cash and Bank Balances 1,771,030,896 3,511,914,255
Cash Flow StatementFor the period from July 17, 2014 to July 16, 2015 (Shrawan 01, 2071 to Ashadh 31, 2072)
Cash Flow Before Working Capital Activities
Particulars
Sanima Bank
FINANCIAL REPORT 2014/1520
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Sanima Bank
FINANCIAL REPORT 2014/1521
% Amount Amount %1 100 2,550,240,000 2,217,600,000 100 1.1 - - 1.2 - - 1.3 - - 1.4 - - 1.5 4.55 116,123,859 111,665,897 5.04 1.7 95.45 2,434,116,141 2,105,934,103 94.96 1.6 - - 2 Foreign Ownership - - - -
100 2,550,240,000 2,217,600,000 100
Previous Year
Others
Current Year
Total
Other License InstitutionsOther Entities/ Organizations
Foreign Institutions"A" Class Licensed Institutions
Share Capital and OwnershipAs on July 16, 2015
Particulars
National OwnershipGovernment of Nepal
Individuals
Schedule 1In Rs.
Current Year Previous Year11.1 3,100,000,000 2,250,000,000
a) 31,000,000 Ordinary Shares of Rs. 100 each 3,100,000,000 2,250,000,000 b) …………. Non-redeemable Preference Shares of Rs. … each - - c) …………. Redeemable Preference Shares of Rs. ….. each - -
1.2 2,550,240,000 2,217,600,000 a) 25,502,400 Ordinary Shares of Rs.100 each 2,550,240,000 2,217,600,000 b) …………. Non-redeemable Preference Shares of Rs. …. each - - c) …………. Redeemable Preference Shares of Rs. ……. each - -
1.3 2,550,240,000 2,217,600,000 a) 25,502,400 Ordinary Shares of Rs.100 each 2,550,240,000 2,217,600,000 b) …………. Non-redeemable Preference Shares of Rs. …. each - - c) …………. Redeemable Preference Shares of Rs. ……… each
1.4 Proposed Bonus Share 510,048,000 332,640,000 1.5 Calls in Advance - -
3,060,288,000 2,550,240,000
Particulars
Total (1.3+1.4+1.5)
Issued Capital
Paid up Capital
Share CapitalAuthorized Capital
Sanima Bank
FINANCIAL REPORT 2014/1522
In Rs.
S. No Name of Share Holder No of Share % Current Year1 Arun Kumar Ojha 3,537,296 13.87 353,729,600 2 Tek Raj Niraula 2,209,126 8.66 220,912,600 3 Dr. Niraj Govinda Shrestha 1,593,900 6.25 159,390,000 4 Jiba Nath Lamichhane 1,537,476 6.03 153,747,600 5 Binaya Kumar Shrestha 1,281,445 5.02 128,144,500 6 Ghanashyam Thapa 1,273,475 4.99 127,347,500 7 Dr. Birendra Prasad Mahato 1,195,425 4.69 119,542,500 8 Khem Raj Lamichhane 992,634 3.89 99,263,400 9 Ram Krishna Shah 792,545 3.11 79,254,500 10 Jai Ganesh Investment Company Pvt. Ltd 696,940 2.73 69,694,000 12 Dilip Shrestha 354,625 1.39 35,462,500 11 Dinesh Mani Shrestha 340,239 1.33 34,023,900 13 Shamba Lama 185,689 0.73 18,568,900 14 Geeta Chhetri 171,350 0.67 17,135,000
Total 16,162,165 63.38 1,616,216,500
Schedule 2In Rs.
Current Year Previous Year1 365,328,259 240,500,000 2 - - 3 - - 4 - - 5 - -
5.1 Contingent Reserve - - 5.2 Institution Development Fund - - 5.3 Dividend Equalization Fund - - 5.4 Special Reserve Fund - - 5.5 Assets Revaluation Reserve - - 5.6 Deferred Tax Reserve - - 5.7 Other Free Reserves - - 5.8 Other Reserve Funds - - 5.9 Share Premium - 10,563,747 5.10 Investment Adjustment Reserve 555,000 555,000
6 1,323,688 28,339,535 7 3,198,743 3,198,743
370,405,691 283,157,025
Capital Adjustment Fund
Exchange Equalization FundAccumulated Profit/(Loss)
Total
General Reserve FundCapital Reserve Fund
Other Resevers
List of Share holders holding Share Capital of 0.5% or More
Particulars
Reserve and SurplusAs on July 16, 2015
Capital Redemption Reserve
Sanima Bank
FINANCIAL REPORT 2014/1523
Schedule 3
In Rs.
Current Year Previous Year1 - -
- - - -
2 - - - - - -
3 - - - -
Schedule 4In Rs.
Current Year Previous YearA.
1 Nepal Government - - 2 Nepal Rastra Bank 1,687,185,281 802,065,460 3 Repo Obligation - - 4 Inter Bank and Financial Institutions - 96,202,405 5 Other Organized Institutions - - 6 Others - -
1,687,185,281 898,267,865 B. - -
1 Banks - - 2 Others - -
- - 1,687,185,281 898,267,865
Foreign
Total (A+B)
Total
Total
Local
Total (1+2+3)
As on July 16, 2015
Particulars……………. Percent Bonds/Debentures of Rs. ………… each
(Outstanding balance of Redemption Reserve Rs. …………….)Issued on …………… and Matured on …………..
Debentures and BondsAs on July 16, 2015
………………
Particulars
……………. Percent Bond/Debentures of Rs. ………… eachIssued on …………… and Matured on …………..(Outstanding Balance of Redemption Reserve Rs. …………….)
Borrowings
Sanima Bank
FINANCIAL REPORT 2014/1524
Schedule 5In Rs.
Current Year Previous Year1 Non-Interest Bearing AccountsA. Current Deposits 1,863,965,368 730,964,907 1. Local Currency 1,855,462,201 724,956,904 1.1 Nepal Government - 1.2 "A" Class Licensed Institutions 19,684,337 16,199,756 1.3 Other Licensed Financial Institutions 28,770,577 18,737,975 1.4 Other Organized Institutions 1,639,445,983 591,635,419 1.5 Individuals 167,561,305 98,383,754 1.6 Others - 2. Foreign Currency 8,503,167 6,008,002 2.1 Nepal Government - - 2.2 "A" Class Licensed Institutions - - 2.3 Other Licensed Financial Institutions 2,032 84,302 2.4 Other Organized Institutions 8,303,947 5,910,232 2.5 Individuals 197,187 13,468 2.6 Others - - B. Margin Deposits 131,140,848 103,389,259 1 Employee Guarantees - - 2 Guarantee Margin 62,743,539 34,016,759 3 Letters of Credit Margin 68,397,309 69,372,500 C. Others 6,209,612 146,439,045 1. Local Currency 6,209,612 143,643,554 1.1 Financial Institutions - - 1.2 Other Organized Institutions 6,209,612 143,504,929 1.3 Individuals - 138,625 2. Foreign Currency - 2,795,491 2.1 Financial Institutions - - 2.2 Other Organized Institutions - - 2.3 Individuals - 2,795,491
2,001,315,828 980,793,211 2 Interest Bearing Accounts - - A. Savings Deposits 12,452,252,247 8,009,972,786 1. Local Currency 12,323,669,784 7,949,279,073 1.1 Organized Institutions 19,504,122 77,962,988 1.2 Individuals 12,304,165,662 7,871,316,085 1.3 Others - - 2. Foreign Currency 128,582,464 60,693,713 2.1 Organized Institutions - 2.2 Individuals 128,582,464 60,693,713 2.3 Others - - B. Fixed Deposits 11,709,277,171 9,443,811,175 1. Local Currency 10,454,338,693 8,189,586,611 1.1 Organized Institutions 6,542,770,296 5,294,606,516 1.2 Individuals 3,911,568,397 2,894,980,095 1.3 Others - - 2. Foreign Currency 1,254,938,478 1,254,224,564 2.1 Organized Institutions 1,254,938,478 1,254,224,564 2.2 Individuals - - 2.3 Others - - C. Call Deposits 7,882,471,045 6,439,272,186 1 Local Currency 7,013,401,429 6,420,053,382 1.1 "A" Class Licensed Institutions - 1.2 Other Licensed Institutions 2,089,412,771 2,863,670,887 1.3 Other Organized Institutions 4,789,622,853 3,421,116,353 1.4 Individuals 134,365,804 135,266,142 1.5 Others - - 2. Foreign Currency 869,069,617 19,218,803 2.1 "A" Class Licensed Institutions - - 2.2 Other Licensed Institutions 512,148 - 2.3 Other Organized Institutions 868,557,468 19,218,803 2.4 Individuals - 2.5 Others - - D. Certificate of Deposit - - 1. Organized Institutions - - 2. Individuals - - 3. Others - -
32,044,000,464 23,893,056,147 34,045,316,291 24,873,849,358
DepositsAs on July 16, 2015
Total of Interest Bearing AccountsTotal Deposit (1+2)
Particulars
Total of Non-Interest Bearing Accounts
Sanima Bank
FINANCIAL REPORT 2014/1525
Schedule 6In Rs.
Particulars Current Year Previous Year1 Local Currency - - 2 Foreign Currency - -
Total - -
Schedule 7In Rs.
Current Year Previous Year1 Pension/Gratuity Fund - - 2 Employees Provident Fund - - 3 Employees Welfare Fund - - 4 Provision for Staff Bonus 88,613,731 61,649,104 5 Interest Payable on Deposits 3,899,472 11,590,638 6 Interest Payable on Borrowings 12,617,555 1,974,774 7 Unearned Discount and Commission 27,509,846 11,754,345 8 Sundry Creditors 3,598,297 24,385,256 9 Branch Adjustment Account - -
10 Deferred Tax Liability 4,651,656 2,421,146 11 Dividend Payable 7,145,535 8,482,634 12 Others -
TDS Payable 29,646,435 19,784,756 Provision for expenses 26,044,236 19,901,713 Audit fee payable 791,000 508,500 Others -
Gold Security Margin 828,166,911 495,682,435 Forward Contract Payables - 21,064,524 Others 78,472,808 74,764,344
1,111,157,482 753,964,168
Bills PayableAs on July 16, 2015
Total
As on July 16, 2015
Particulars
Other Liabilities
Schedule 8In Rs.
Previous Year1 532,850,978 2 5,536,188
538,387,166
Schedule 9In Rs.
Indian Currency
Convertible Total
1 Nepal Rastra Bank 668,763,564 - 18,512,526 - 687,276,091 2,811,039,229
a) Current Account 668,763,564 - 18,512,526 18,512,526 687,276,091 2,811,039,229 b) Other Account - - - - - -
Local Currency (including coin) 666,881,939 Foreign Currency
Cash BalanceAs on July 16, 2015
Current YearParticulars
690,663,251
Previous Year
23,781,312
Foreign CurrencyParticulars Local Currency
Balance with Nepal Rastra Bank
Total
As on July 16, 2015
Current Year
Sanima Bank
FINANCIAL REPORT 2014/1526
Schedule 10In Rs.
Indian Currency Convertible Total
1 Local Licensed Institutions 74,046,266 - 975,588 975,588 75,021,853 52,782,000 a) Current Account 74,046,266 - 975,588 975,588 75,021,853 52,782,000 b) Other Account - - - - - - 2 Foreign Banks - 121,377,163 196,692,538 318,069,700 318,069,700 109,705,861 a) Current Account - 121,377,163 196,692,538 318,069,700 318,069,700 109,705,861 b) Other Account - - - - - -
74,046,266 121,377,163 197,668,125 319,045,288 393,091,554 162,487,861
Note: Total Balance for which the confirmations are received from the respective licensed institutions is Rs. 445,263,062 while the differences are subsequently being reconciled.
Previous Year
Balance with Banks/Financial InstitutionsAs on July 16, 2015
Total
Particulars Local CurrencyForeign Currency
Current Year
Schedule 11In Rs.
Current Year Previous Year1 - - 2 - -
- -
Schedule 12In Rs.
Trading Other
1 Nepal Government Treasury Bills 2,376,800,617 2,376,800,617 1,800,626,479 2 Nepal Government Savings Certificates - - - 3 Nepal Government Other Bond - 2,758,159,043 2,758,159,043 333,392,562 4 Nepal Rastra Bank Bonds - - - - 5 Foreign Bonds/Debenture - 501,169,368 501,169,368 - 6 Local Licensed Institutions - 182,880,000 182,880,000 252,838 7 Foreign Banks - 1,887,649,236 1,887,649,236 1,521,035,623 8 Origanized Insrtitutions Shares 24,924,520 12,657,600 37,582,120 60,448,160 9 Corporate Bonds and Debentures - - - -
10 Other Investments - - - - 24,924,520 7,719,315,864 7,744,240,384 3,715,755,662
- - - 252,838 24,924,520 7,719,315,864 7,744,240,384 3,715,502,824
Foreign Currency
Current Year
Total
Total InvestmentProvision
Net Investment
ParticularsPurpose
Money at Call and Short NoticeAs on July 16, 2015
Previous Year
InvestmentsAs on July 16, 2015
ParticularsLocal Currency
Sanima Bank
FINANCIAL REPORT 2014/1527
In Rs.
Cost Price Market Price Provision Current Year Previous Year1 Investment in Shares 36,397,923 94,924,520 - 37,582,120 60,448,160 1.1 Nepal Clearing House Company Ltd. - - -
23,206 Ordinary Shares of Rs 100 Paid up each 2,302,600 - - 2,302,600 2,302,600 1.2 Sanima Mai Hydro Ltd. - - - - -
100,000 Ordinary Shares of Rs.100 Paid up each 10,000,000 70,000,000 - 10,000,000 10,000,000 1.3 Sanima Life Insurance Co. Ltd.
350,000 Ordinary Shares of Rs.1 Paid up each (Face Value Rs 100) 350,000 350,000 350,000
1.4 Sanima Foundation - - - Shares of Rs. Paid up each 5,000 - - 5,000 5,000
1.5 Rural Micro Finance Development Centre7,681 Ordinary Share Shares of Rs. 100 paid up each 3,139,863 4,988,291 - 4,988,291 12,391,593
1.6 Nepal Telcom31,615 Ordinary Share Shares of Rs. 100 Paid up each 20,600,460 19,936,229 - 19,936,229 13,762,972
1.7 Nabil Balance Fund-1 - - - - 21,635,995 2 Investment in Debentures and Bonds - - - 2.1 Foreign Bonds 501,169,368 496,572,210 501,169,368
537,567,291 591,496,730 - 538,751,488 60,448,160 3 Provision for Loss - - - - - 3.1 Provision Up to Previous Year - - 3.2 Additions This Year - - -
- - - 537,567,291 591,496,730 - 538,751,488 60,448,160
Companies 1.2, 1.5, 1.6, 1.7 are listed in stock exchange.
Particulars
Total Provision
Companies mentioned 1.3 & 1.4 is not yet in operation and no share certificate have been issued.
Broker Commission @ 0.85% has been adjusted in Mark to Market Price.
Schedule 12 (A)Investment in Shares, Debentures and Bonds
As on July 16, 2015
Companies mentioned in 1.1, 1.2, 1.3 & 1.4 have not declared dividend in last three years.
Net Investment
Total Investment
Sanima Bank
FINANCIAL REPORT 2014/1528
In Rs.
Description Cost PriceLast Market
Price (A)Current Market
Price (B)
Current Year Profit/(Loss)
(B-A)Previous Year Profit/(Loss) Remarks
1. Treasury Bills of Governement of Nepal - - - - - 2. Saving Bonds of Government of Nepal - - - - - 3. Other Bonds of Government of Nepal - - - - - 4. Bonds of Nepal Rastra Bank - - - - - 5. Foreign Bonds - - - - - 6. Shares of Local Licensed Institutions - - - - - 7. Debenture and Bonds of Local Licensed Institutions - - - - - 8. Share, Debenture and Bonds of Local Organized Institutions 23,740,323 26,943,865 24,924,520 (2,019,345) 7,402,006 9. Investment in Foreign Banks (Placement) - - - - - 10. Interbank Lending - - - - - 11. Other Investment - - - - - Total Investment 23,740,323 26,943,865 24,924,520 (2,019,345) 7,402,006
In Rs.
Description Cost Price (A)
Cumulative Loss Upto This
Year (B)Current Year
Loss (C)
Current Year Profit/(Loss)
(A-B-C)Previous Year Profit/(Loss) Remarks
1.Treasury Bills of Governement of Nepal 2,376,800,617 - - - - 2. Saving Bonds of Government of Nepal - - - - - 3. Other Bonds of Government of Nepal 2,758,159,043 - - - - 4.Bonds of Nepal Rastra Bank - - - - - 5. Foreign Bonds 501,169,368 - - - - 6. Shares of Local Licensed Institutions - - - - - 7. Debenture and Bonds of Local Licensed Institutions - - - - - 8. Share, Debenture and Bonds of Local Organized Institutions - - - - - 9. Investment in Foreign Banks (Placement) 1,887,649,236 - - - - 10. Other Investment 182,880,000 - - - - Total Investment 7,706,658,264 - - - -
Schedule 12.3In Rs.
Current Year Previous Year Fund
Adjustment Amount (B-A) 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 - - - - - 6. Shares of Local Licensed Institutions - - - - - 7. Debenture and Bonds of Local Licensed Institutions - - - - - 8. Share, Debenture and Bonds of Local Organized Institutions 12,657,600 79,500,000 70,000,000 - - 9. Investment in Foreign Banks (Placement) - - - - - 10. Other Investment - - - - - Total Investment 12,657,600 79,500,000 70,000,000 - - -
Available for SaleAs on July 16, 2015
Description Cost PriceLast Market
Price (A)Current Market
Price (B) Remarks
Held for TradingAs on July 16, 2015 Schedule 12.1
Held to MaturityAs on July 16, 2015 Schedule 12.2
Sanima Bank
FINANCIAL REPORT 2014/1529
Sche
dule
13
In R
s.
Insu
red
Uni
nsur
ed1
Perf
orm
ing
Loan
-
1,20
1,06
0,72
8
27,2
28,4
06,5
74
-
28,4
29,4
67,3
02
29,7
85,0
00
108,
055,
194
13
7,84
0,19
4
28,5
67,3
07,4
95
20,6
16,8
18,3
60
1.
1Pa
ss L
oan
-
1,20
1,06
0,72
8
27,2
28,4
06,5
74
-
28,4
29,4
67,3
02
29,7
85,0
00
108,
055,
194
13
7,84
0,19
4
28,5
67,3
07,4
95
20,6
16,8
18,3
60
2
Non
-Per
form
ing
Loan
-
250,
313
20,5
63,6
52
-
20,8
13,9
64
-
-
-
20
,813
,964
3,
582,
854
2.1
Restr
uctu
red
-
-
-
-
-
-
-
-
-
-
2.2
Subs
tand
ard
-
-
11
,505
,859
-
11
,505
,859
-
-
-
11,5
05,8
59
613,
908
2.
3D
oubt
ful
-
250,
313
4,99
5,61
8
-
5,
245,
931
-
-
-
5,
245,
931
1,42
7,95
3
2.
4Ba
d-
-
4,06
2,17
4
-
4,
062,
174
-
-
-
4,
062,
174
1,54
0,99
4
(A
)-
1,
201,
311,
041
27
,248
,970
,225
-
28
,450
,281
,266
29
,785
,000
10
8,05
5,19
4
137,
840,
194
28
,588
,121
,460
20
,620
,401
,214
3
Loan
Los
s Pro
visio
n-
12
,135
,764
310,
556,
560
-
32
2,69
2,32
4
297,
850
1,
080,
552
1,37
8,40
2
32
4,07
0,72
5
248,
957,
246
3.
1Pa
ss-
12
,010
,607
301,
120,
112
-
31
3,13
0,71
9
297,
850
1,
080,
552
1,37
8,40
2
31
4,50
9,12
1
246,
548,
799
3.
2Re
struc
ture
d-
-
-
-
-
-
-
-
-
-
3.3
Subs
tand
ard
-
-
2,
876,
465
-
2,87
6,46
5
-
-
-
2,
876,
465
153,
477
3.
4D
oubt
ful
-
125,
156
2,49
7,80
9
-
2,
622,
966
-
-
-
2,62
2,96
6
71
3,97
6
3.5
Bad
-
-
4,
062,
174
-
4,06
2,17
4
-
-
-
4,
062,
174
1,54
0,99
4
(B
)-
12
,135
,764
310,
556,
560
-
322,
692,
324
297,
850
1,08
0,55
2
1,
378,
402
324,
070,
725
248,
957,
246
4
Prov
ision
ing
up to
Pre
viou
s Yea
r-
8,
181,
138
23
8,51
9,40
3
-
246,
700,
541
-
2,
256,
705
2,25
6,70
5
24
8,95
7,24
6
155,
101,
881
4.
1Pa
ss-
8,
181,
138
23
6,11
0,95
5
-
244,
292,
094
2,
256,
705
2,25
6,70
5
24
6,54
8,79
9
153,
071,
402
4.
2Re
struc
ture
d-
-
-
-
-
-
-
-
-
-
4.
3Su
bsta
ndar
d-
-
153,
477
-
15
3,47
7
-
-
-
15
3,47
7
701,
701
4.
4D
oubt
ful
-
-
71
3,97
6
-
713,
976
-
-
-
713,
976
-
4.
5Ba
d-
-
1,54
0,99
4
-
1,
540,
994
-
-
-
1,
540,
994
1,32
8,77
9
(C
)-
8,
181,
138
23
8,51
9,40
3
-
24
6,70
0,54
1
-
2,
256,
705
2,25
6,70
5
24
8,95
7,24
6
15
5,10
1,88
1
(D)
-
-
41
,608
,395
-
41
,608
,395
-
-
-
41,6
08,3
95
1,35
7,11
2
(E
)-
3,
954,
625
11
3,64
5,55
3
-
11
7,60
0,17
8
29
7,85
0
(1
,176
,153
)
(8
78,3
03)
116,
721,
875
95
,212
,477
-
3,
954,
625
11
3,64
5,55
3
-
117,
600,
178
29
7,85
0
(1,1
76,1
53)
(878
,303
)
116,
721,
875
93
,855
,365
-
1,18
9,17
5,27
7
26,9
38,4
13,6
65
-
28,1
27,5
88,9
43
29,4
87,1
50
106,
974,
642
13
6,46
1,79
2
28,2
64,0
50,7
34
20,3
71,4
43,9
68
Net
Loa
n (A
-B)
Tot
al L
oan
Tot
al P
rovi
sion
ing
Tot
al P
revi
ous
Yea
r's P
rovi
sion
Writ
ten
Bac
k Fr
om P
revi
ous
Yea
r
C
hang
es in
Thi
s Yea
rA
dditi
onal
Pro
visi
on in
this
yea
r
Part
icul
ars
Tot
alFo
reig
nT
otal
Dom
estic
Fore
ign
Cla
ssifi
catio
n o
f L
oan
s an
d B
ills
Pur
chas
ed a
nd P
rovi
sio
ning
As
on
July
16,
201
5
Loa
ns
Cur
rent
Yea
rO
ther
s
Dom
estic
Dep
rived
Bill
s Pu
rcha
sed/
Dis
coun
ted
Pre
viou
s Y
ear
Sanima Bank
FINANCIAL REPORT 2014/1530
Schedule 13 (A)In Rs.
Current Year Previous Year(A) 28,588,121,460 20,620,401,214
1 Movable/Immovable Assets 26,545,994,035 18,773,088,635 2 Guarantee of Local Licensed Institutions - - 3 Government Guarantee - - 4 Internationally Rated Bank Guarantee - - 5 Export Documents - - 6 Fixed Deposit Receipts - -
a) Own Fixed Deposit Receipt 109,487,046 135,566,602 b) Fixed Deposit Receipt of Other Licensed Institutions - -
7 Government Bonds - - 8 Counter Guarantee - - 9 Personal Guarantee 2,417,212 3,584,964 10 Other Securities 1,930,223,167 1,708,161,013
(B) Unsecured - - 28,588,121,460 20,620,401,214
Loans, Advances and Bills Purchased Security wise
Total
As on July 16, 2015
ParticularsSecured
Sanima Bank
FINANCIAL REPORT 2014/1531
Sche
dule
14
In R
s.
Lan
d &
Bui
ldin
gV
ehic
les
Mac
hine
ryO
ffic
e E
quip
men
tO
ther
s1
-
-
-
-
-
-
-
a.Pr
evio
us Y
ear B
alanc
e13
9,20
2,42
5
87,9
33,1
14
31,7
81,0
74
16
4,97
7,71
0
-
423,
894,
322
363,
022,
753
b.A
dditi
on T
his Y
ear
47,6
84,0
47
33
,334
,696
61,5
45,5
92
-
14
2,56
4,33
5
71
,999
,818
c.Re
valu
atio
n/W
ritte
n Ba
ck
This
Yea
r-
-
-
d.Th
is Y
ear S
old
(9,7
74,9
00)
(9
31,1
80)
(10,
706,
080)
(8
,240
,358
)
e.Th
is Y
ear W
ritte
n of
f-
-
(2
,887
,890
)
139,
202,
425
12
5,84
2,26
1
65
,115
,770
225,
592,
121
-
55
5,75
2,57
7
42
3,89
4,32
2
2
-
-
-
-
-
-
-
a.
Up
to P
r evi
ous Y
ear
16,6
98,4
19
30
,410
,700
12
,096
,949
84,5
42,1
54
-
14
3,74
8,22
2
10
5,57
3,11
8
b.
For T
his Y
ear
6,12
5,20
0
15,2
83,0
93
5,
310,
266
28
,904
,890
-
55,6
23,4
50
44,3
54,3
53
c.D
epre
ciatio
n on
Re
valu
atio
n/W
ritte
n Ba
ck-
-
-
d.D
epr e
ciatio
n A
djus
tmen
t /R
ever
sal
(5,4
00,8
29)
(5
92,4
35)
-
(5
,993
,264
)
(6,1
79,2
49)
22
,823
,619
40,2
92,9
63
17,4
07,2
15
11
2,85
4,61
0
-
193,
378,
407
143,
748,
222
311
6,37
8,80
6
85,5
49,2
97
47,7
08,5
55
11
2,73
7,51
1
-
362,
374,
170
280,
146,
101
417
1,60
0,00
0
-
-
-
-
171,
600,
000
171,
600,
000
5-
-
-
-
28
5,74
4
28
5,74
4
-
6-
-
-
80,5
11,6
90
80
,511
,690
50
,489
,666
28
7,97
8,80
6
85,5
49,2
97
47,7
08,5
55
11
2,73
7,51
1
80
,797
,435
614,
771,
604
502,
235,
767
As p
er F
TB28
7,97
8,80
5.66
85,5
77,3
70.9
047
,716
,076
.06
112,
740,
345.
4580
,878
,082
.42
614,
890,
680
Prev
ious
Yea
r
Fixe
d A
sset
sA
s o
n Ju
ly 1
6, 2
015
Boo
k V
alue
(WD
V*)
(1-2
)
At C
ost Tot
al (3
+4+
5+6)
Cur
rent
Yea
rPa
rtic
ular
s
Tot
al C
ost (
a+b+
c-d-
e)D
epre
ciatio
n
Tot
al D
epre
ciat
ion
Ass
ets
Land
Cap
italiz
atio
n C
onstr
uctio
n (P
endi
ng
Leas
ehol
d A
sset
s
Sche
dule
15
In R
s.
In P
erca
ntag
eIn
Am
ount
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Gra
nd T
otal
Prev
ious
Yea
r R
s.
No
n-B
anki
ng A
sset
sA
s o
n Ju
ly 1
6, 2
015
Net
Non
-Ban
king
A
sset
s C
urre
nt
Los
s Pr
ovis
ion
Nam
e an
d A
ddre
ss o
f B
orro
wer
or P
arty
Dat
e of
Acc
ept
Non
-Ban
king
T
otal
Am
ount
of
Non
-Ban
king
Ass
ets
Sanima Bank
FINANCIAL REPORT 2014/1532
274,901,770 198,187,803 (260,020,421) (183,428,099)
41,972,993 40,225,713 1,209,655,535 693,937,080
380,987,191 232,229,859 12,249,830 90,808,585 48,228,740 56,270,729
1,907,103,759 1,275,888,970
Schedule 16In Rs.
Current Year Previous Year1 6,239,033 4,991,029 2 22,507,034 7,556,124 3 62,167,185 - 41,353,074
62,167,185 - (41,353,074)4 - 5 564,598 3,591,809 6 142,932,526 117,493,369 7 23,722,435 9,745,460 8 - - 9 - - 10 - - 11 3,162,496 4,279,508 12 - - 13 - - 14 -
Advance TaxLess: Provision for Tax
Outward ClearingOthers
Total
Forward Contract Receivables
Expenses Not Written off
Less : Interest Suspense Amount
Cash in Transit
Staff Loans and AdvancesPrepaid Expenses
Branch account
Commission Receivable
Drafts Paid without NoticeOther Transit items ( including cheques )
Accrued Interest on Loan
OthersDeferred Tax Assets
Sundry Debtors
Custom DutyAdvances - Gold and Silver
Other AssetsAs on July 16, 2015
Stationery StockIncome Receivable on Investments
Particulars
Schedule 16 (A)In Rs.
Up to 1 Year
1 to 3 YearsMore Than 3
Years1 Accrued Interest on Loan 62,167,185 - - 62,167,185 30,992,138 2 Drafts Paid without Notice - - - - - 3 Branch Adjustment Account - - - - - 4 Local and Foreign Agency A/Cs - - - - -
Previous Year
Other Assets (Aditional Information)
Current YearCurrent Year
Particulars
Sanima Bank
FINANCIAL REPORT 2014/1533
Schedule 17In Rs.
Current Year Previous Year1 - - 2 - -
a) Less than 6 months Maturity 625,829,265 805,599,041 b) More than 6 months Maturity 129,145,936 88,037,478
3 - - 4 - -
a) Bid Bonds 135,970,518 138,188,142 b) Performance Bonds 1,809,337,265 1,112,917,901 c) Other Guarantees/Bonds - -
5 - - 6 - - 7 87,106,203 11,572,278 8 261,856,456 288,465,832 9 - - 10 3,503,819,138 2,459,148,916 11 - - 12 718,595,897 391,465,705 13 - - 14 2,126,284 - 15 10,036,200 9,502,780
- - 7,283,823,162 5,304,898,073
Irrevocable Loan Commitments
Letters of Credit (Full Amount)
Contingent Liabilities on Income Tax
Unmatured Guarantees/Bonds
Underwriting CommitmentsAcceptance and Endorsements
Advance Payment GuaranteeFinancial Guarantee
Others
Counter Guarantee of Internationally Rated Banks
Total
Claims on Institution but not accepted by the Institution
Rediscounted Bills
Contingent LiabilitiesAs on July 16, 2015
Bills under Collection
Unpaid Shares in Investment
Particulars
Forward Exchange Contract Liabilities
Sanima Bank
FINANCIAL REPORT 2014/1534
Schedule 18In Rs.
Current Year Previous Year A. 2,472,344,223 1,934,145,084
1 Loans and Advances 1,903,261,447 1,478,692,264 2 Overdraft 569,082,776 455,452,821
B 76,463,021 84,326,051 1 Nepal Government Securities 42,645,603 67,488,000
a. Treasury Bills 19,973,334 54,692,459 b. Development Bonds 22,672,269 12,795,541 c. National Savings Certificates - -
2 Foreign Securities 7,806,757 - 3 Nepal Rastra Bank Bond - - 4 Debenture and Bonds - - 5 On Interbank Placement 26,010,661 16,838,050
a. Bank and Financial Institutions 26,010,661 16,838,050 b. Other Organizations - -
C - - 1 Local Banks - - 2 Foreign Banks - -
D 76,284 34,495 1 Local Banks/Financial Institutions 76,284 34,495 2 Foreign Banks - -
E - - 1 Certificate of Deposits - - 2 Inter-Bank Loan - - 3 Others - -
2,548,883,528 2,018,505,630
Interest IncomeFor the period from July 17, 2014 to July 16, 2015
(Shrawan 01, 2071 to Ashadh 31, 2072)
Particulars
Total
On Others
On Agency Balances
On Money at Call and Short Notice
On Loan, Advances and Overdraft
On Investment
Sanima Bank
FINANCIAL REPORT 2014/1535
Schedule 19In Rs.
Current Year Previous YearA. 1,355,210,276 1,175,363,493
1 Fixed Deposits 622,951,917 692,759,190 1.1 Local Currency 605,110,706 684,426,566 1.2 Foreign Currency 17,841,210 8,332,625
2 Savings Deposits 453,015,185 307,421,410 2.1 Local Currency 451,644,046 306,601,277 2.2 Foreign Currency 1,371,139 820,133
3 Call Deposits 279,243,174 175,182,893 3.1 Local Currency 277,727,779 175,131,495 3.2 Foreign Currency 1,515,395 51,397
4 Certificate of Deposits - - B 50,196,442 22,946,823
1 Debentures and Bonds - - 2 Loan from Nepal Rastra Bank 47,978,330 21,482,958 3 Inter Bank/Financial Institutions Borrowing 2,218,112 1,463,866 4 Other Corporate Body - - 5 Other Loans - -
C 4,086,877 1,477,548 1 Bond Premium w/o 4,086,877 1,477,548 2 ……………….
1,409,493,594 1,199,787,864
Interest ExpensesFor the period from July 17, 2014 to July 16, 2015
(Shrawan 01, 2071 to Ashadh 31, 2072)
Particulars
Total
On Borrowings
On Deposit Liabilities
On Others
Schedule 20In Rs.
Current Year Previous YearA - -
1 Local - - 2 Foreign - -
B 42,276,613 29,566,019 1 Letters of Credit 11,652,905 7,006,742 2 Guarantee 20,638,631 11,759,297 3 Collection Fee 94,766 - 4 Remittance Fee 9,881,653 8,913,916 5 Credit Cards - - 6 Share Underwriting/Issues 8,657 1,880,394 7 Government Transactions - 5,670 8 Agency Commission - - 9 Exchange Income - -
C 11,191,811 10,258,723 - -
53,468,424 39,824,742
Commission and Discount For the period from July 17, 2014 to July 16, 2015
(Shrawan 01, 2071 to Ashadh 31, 2072)
Total
Commission
ParticularsBills Purchase and Discount
Others
-
Sanima Bank
FINANCIAL REPORT 2014/1536
Schedule 21In Rs.
Current Year Previous Year1 Rental on Safe Deposit Lockers 2,066,650 983,010 2 Issue and Renewals of Credit Cards - - 3 Issue and Renewals of ATM Cards 12,788,056 1,271,282 4 Telex/T.T. 3,052,093 1,689,022 5 Service Charges 90,012,754 63,098,349 6 Renewal Fees 3,017,473 3,157,597 7 Others 20,358,120 15,238,580
131,295,145 85,437,840
Schedule 22In Rs.
Current Year Previous Year(A) Revaluation Gain (3,518,902) 2,159,904 (B) Trading Gain (Except Exchange Income) 182,265,837 144,729,506
178,746,935 146,889,410
Particulars
Total Income/(Loss)
Total
Other Operating IncomeFor the period from July 17, 2014 to July 16, 2015
(Shrawan 01, 2071 to Ashadh 31, 2072)
Exchange Gain/LossFor the period from July 17, 2014 to July 16, 2015
(Shrawan 01, 2071 to Ashadh 31, 2072)
Particulars
Schedule 23In Rs.
Current Year Previous Year1 Salary 83,923,148 64,214,338 2 Allowances 56,598,023 37,118,490 3 Contribution to Provident Fund 7,102,531 5,745,941 4 Training Expenses 4,060,981 2,111,199 5 Uniform - - 6 Medical - -
-
7 Insurance 1,649,167 1,226,967 8 Pension and Gratuity Provision 7,643,124 5,892,373 9 Others 21,343,743 18,071,703
182,320,716 134,381,010 Total
Particulars
Employee ExpensesFor the period from July 17, 2014 to July 16, 2015
(Shrawan 01, 2071 to Ashadh 31, 2072)
Sanima Bank
FINANCIAL REPORT 2014/1537
Schedule 24In Rs.
Current Year Previous Year1 28,193,376 16,801,521 2 8,179,339 6,118,048 3 3,158,909 2,236,068
(a) Building 273,047 565,062 (b) Vehicles 1,931,002 983,358 (c) Others (Software) 954,860 687,648
4 12,703,007 12,100,628 5 21,774,076 16,524,177 6 6,097,851 4,185,387 7 6,143,274 2,501,569 8 9,080,843 6,049,671 9 246,323 190,052 10 18,048,108 13,846,914 11 22,183 104,413 12 1,111,111 - 13 2,033,706 1,989,813
(a) Meeting Fees 1,316,000 1,188,432 (b) Other Expenses 717,706 801,381
14 285,245 827,860 15 924,428 697,810
(a) Audit Fees 791,000 508,500 (b) Other Expenses 133,428 189,310
16 1,451,673 1,527,007 17 67,503,756 53,803,451 18 - - 19 - - 20 - - 21 4,938,064 3,569,709 22 5,029,008 2,408,441 23 23,856,495 18,507,617 24 - - 2526 54,664,818 42,392,187
26.1 Bullion Expenses 3,268,491 - 26.2 Vehicle Fuel & Tax 16,469,824 13,971,390 26.3 Membership Fee 3,484,269 1,319,025 26.4 Business Promotion Expense 4,110,888 9,684,432 26.5 Human Resource Outsourcing 17,418,826 12,626,426 26.6 Debenture Issue Expenses 2,196,984 - 26.7 Card related Expenses 1,966,114 - 26.8 Miscellaneous 5,749,421 4,790,913
275,445,593 206,382,340
Security ExpensesCredit Guarantee PremiumCommission and DiscountOthers
Depreciation on Fixed Assets (Including Amortization)Amortization of Preliminary Expenses
Technical Services FeeEntertainmentWritten Off Expenses
Advertisements
Expenses Relating to Board of Directors
Legal ExpensesDonations
Annual General Meeting ExpensesExpenses Relating to Audit
Commission on Remittances
Share Issue Expenses
Total
Electricity and WaterRepair and Maintenance
Postage, Telex, Telephone, FaxOffice Equipment, Furniture and Fixture RepairTraveling Allowances and ExpensesStationery and PrintingPeriodicals and Books
ParticularsHouse Rent
Insurance
Other Overhead ExpensesFor the period from July 17, 2014 to July 16, 2015
(Shrawan 01, 2071 to Ashadh 31, 2072)
Sanima Bank
FINANCIAL REPORT 2014/1538
Schedule 25In Rs.
Current Year Previous Year1 Increase in Loan Loss Provision 116,721,875 95,212,477 2 Increase in Provison for Loss on Investment - - 3 Provision Against Non-Banking Assets - - 4 Provision Against Other Assets 2,719,050.00 -
119,440,925 95,212,477
Schedule 26In Rs.
Current Year Previous Year1 Profit (Loss) on Sale of Investment - - 2 Profit (Loss) on Sale of Assets 345,535 1,030,899 3 Dividend 1,660,370 1,134,709 4 Subsidies Received from Nepal Ratra Bank - -
a. Reimbursement of Losses of Specified Branches - - b. Interest Subsidy - - c. Exchange Counter - -
5 Others 5,338,160 19,400,326 7,344,065 21,565,934
Schedule 27In Rs.
Current Year Previous Year1 Loan Loss Provision Written Back 41,608,395 1,357,112 2 Provision against Non-Banking Assets Written Back - - 3 Investment Provision Written Back 252,837 170,000 4 Provision against Other Assets Written back - -
41,861,232 1,527,112 Total
Total Non-Operating Income (Loss)
Non-Operating Income/LossFor the period from July 17, 2014 to July 16, 2015
(Shrawan 01, 2071 to Ashadh 31, 2072)
Loss Provisions Written BackFor the period from July 17, 2014 to July 16, 2015
(Shrawan 01, 2071 to Ashadh 31, 2072)
Particulars
Total
Particulars
Provision for Possible LossesFor the period from July 17, 2014 to July 16, 2015
(Shrawan 01, 2071 to Ashadh 31, 2072)
Particulars
In R
s.
Part
icul
ars
Cur
rent
Yea
rPr
evio
us Y
ear
1Re
cove
ry o
f writ
e of
f Loa
n-
-
Sanima Bank
FINANCIAL REPORT 2014/1539
Sche
dule
28
2V
olun
tary
Ret
irem
ent S
chem
e E
xpen
ses-
-
3Lo
an W
rite-
Off
(4.2
8) (a
)(6
08,9
98)
(308
,370
)
4O
ther
s-
(608
,998
)
(308
,370
)
Sche
dule
28
(a)
In R
s.
S.N
.T
ypes
of L
oan
Writ
ten
Off
A
mou
ntT
ype
of S
ecur
ityB
asis
of V
alua
tion
of C
olla
tera
lL
oan
App
rove
d by
N
ame/
Des
igna
tion
Initi
atio
n m
ade
for R
ecov
ery
Rem
arks
1W
orki
ng C
apita
l Loa
n-
-
-
-
-
-
2
Proj
ect L
oan
-
-
-
-
-
-
3Fi
xed
Cap
ital L
oan
-
-
-
-
-
-
4Pe
r son
al Lo
an-
-
-
-
-
-
5O
ther
Loa
n60
8,99
8
Veh
icle
(Ba
10 C
ha
3945
) &
Veh
icle
(Ba
9 C
ha
1311
)
Paw
an K
umar
Ach
arya
(H
CRR
)
Sev
eral
writ
ten
follo
w u
p let
ters
has
be
en is
sued
on
diff
eren
t dat
e an
d ho
me
visit
of t
he b
orro
wer
for t
he
purp
ose
of th
e re
cove
ry o
f the
Loa
n.
-
608,
998
-
-
-
-
-
Fo
r th
e p
erio
d f
rom
Jul
y 17
, 201
4 to
Jul
y 16
, 201
5 (S
hraw
an 0
1, 2
071
to A
shad
h 31
, 207
2)
Tot
al L
oan
Sta
tem
ent
of
Lo
ans
Wri
tten
-Off
Fo
r th
e p
erio
d f
rom
Jul
y 17
, 201
4 to
Jul
y 16
, 201
5 (S
hraw
an 0
1, 2
071
to A
shad
h 31
, 207
2)
Inco
me
/Exp
ense
s fr
om
Ext
ra-o
rdin
ary
Act
iviti
es
Sanima Bank
FINANCIAL REPORT 2014/1540
In Rs.
Principal Interest Principal Interest Principal Interest(A) Directors - - - - - - - (B) Chief Executive - - - - - - - (C) Promoters - - - - - - - (D) Employees
1 Ranjan Mainali 1,075,781 - 900,000 - 822,905 998,686.10 - 2 Shailendra Neupane 410,000 - 410,000 - - - - 3 Roshan Dhaurali 337,000 - 337,000 - - - - 4 Binod Ojha 187,000 - 17,000 4,955 - 170,000 - 5 Aska Shrestha 90,000 - - - 118,000 208,000 - 6 Prakash Baral 132,800 - 44,300 - 88,500 - 7 Sunail Khatiwada 268,500 - 268,500 - - - 8 Prem Bahadur Mahat 695,500 - 11,000 - 684,500 2,289 9 Pralhad Chandra Niraula 245,000 - 175,300 - 69,700 - 10 Hemanta Shrestha 90,500 - 90,500 - - - - 11 Mahesh Kumar Niraula 170,000 - 4,500 - - 165,500 - 12 Manoj Kumar Ghimire 301,000 - - 119,000 420,000 - 13 Sumeena Shrestha 300,000 - 55,000 - - 245,000 - 14 Hitler Shrestha 650,000 - - - - 650,000 - 15 Rajiv Bogati 66,000 - - - 290,500 356,500 - 16 Ambika Danuwar 100,000 - - - 94,000 194,000 - 17 Pujan Baidhya 385,000 - - - 587,500 972,500 - 18 Christina Nakarmi 150,000 - 150,000 - - - - 19 Narayan Pd Khatiwada 94,500 - - - 245,500 340,000 - 20 Rabin Subedi - - 265,000 4,299 320,000 55,000 - 21 Prasidhha Roka - - 49,000 8,499 349,000 300,000 - 22 Beekina Maharjan - - - - 640,000 640,000 - 23 Bhusant Samsher JBR - - - - 165,000 165,000 - 24 Depesh Pradhan - - - - 248,000 248,000 - 25 Subhodh Amatya - - - - 823,000 823,000 - 26 Shrijana Rimal - - - 4,147 145,000 145,000 - 27 Shobha Khatiwada - - - 4,471 200,000 200,000 - 28 Sabina Tandukar - - - 2,189 85,000 85,000 - 29 Ananda Kumar Chaudhari - - - 69 30,000 30,000 - 30 Raju Acharya - - - 28,461 1,490,000 1,490,000 - 31 Rupa Shrestha - - - 1,674 65,000 65,000 -
(E) Shareholders - - - - - - - 5,748,581 - 2,777,100 58,764 6,837,405 9,808,886 2,289
Statement of Loans and Advances Extended to Directors/Chief Executive/PromoterEmployees and Shareholders
As on July 16, 2015
Name of Promoter/Director/Chief Executive Till Previous Year's Balance Current Year Recovery Current Year Additions
Balance as of Ashad End
Note: All Above loans are against Fixed Deposit maintained with the Bank and GoldTotal
The Statement of amount, included under total amount of Bills Purchased and Discounted, Loans, Advances and Overdraft, provided to the Directors, Chief Executive, Promoters, Employees, Shareholders and to the individual members of their undivided family or against the guarantee of such persons or to the organizations or companies in which such individuals are managing agent, are as follows :
Schedule 29
Sanima Bank
FINANCIAL REPORT 2014/1541
Schedule 30 (Ka 1)In Rs.
1.1 RISK WEIGHTED EXPOSURES Current Year Previous Yeara Risk Weighted Exposure for Credit Risk 30,651,616,831 22,680,658,738 b Risk Weighted Exposure for Operational Risk 1,179,750,998 833,090,952 c Risk Weighted Exposure for Market Risk 575,610,060 334,302,709
Total Risk Weighted Exposures (a+b+c) 32,406,977,889 23,848,052,398 Adjustments Under Pillar II - ALM policies & practices are not satisfactory, add 1% of net interest income to RWE (6.4 a 5) 8,187,178 Add .....% of the total deposit due to insufficient Liquid Assets (6.4 a 6)Add RWE equivalent to reciprocal of capital charge of 3% of gross income (6.4 a 7) 330,369,208 155,132,505 Overall risk management policies and precedures are not satisfactory. Add 3% of RWE (6.4 a 9) 972,209,337 476,961,048 If desired level of disclosure requirement has not been achieved, Add .....% of RWE (6.4 a 10)Total Risk Weighted Exposures (After Bank's adjustments of Pillar II) 33,717,743,612 24,480,145,952
1.2 CAPITAL Current Year Previous YearCore Capital (Tier 1) 3,416,584,948 2,819,288,281
a Paid up Equity Share Capital 2,550,240,000 2,217,600,000 b Irredeemable Non-cumulative preference shares - - c Share Premium - 10,563,747 d Proposed Bonus Equity Shares 510,048,000 332,640,000 e Statutory General Reserves 365,328,259 240,500,000 f Retained Earnings 1,323,688 28,339,535 g Un-audited current year cumulative profit - - h Capital Redemption Reserve - - I Capital Adjustment Reserve - - j Dividend Equalization Reserves - - k Debenture Payment Reservel Deffered Tax Reserve - - m Other Free Reserve - - n Less: Goodwill - - o Less: Fictitious Assets - - p Less: Investment in equity in licensed Financial Institutions - - q Less: Investment in equity of institutions with financial interests 10,355,000 10,355,000 r Less: Investment in equity of institutions in excess of limits - - s Less: Investments arising out of underwriting commitments - - t Less: Reciprocal crossholdingsu Less: Purchase of land & building in excess of limit & utilizedv Less: Other Deductions - -
Adjustments Under Pillar IILess: Shortfall in Provision (6.4 a 1)Less: Loans and Facilities extended to Related Parties and Restricted lending (6.4 a 2)
Supplementary Capital (Tier 2) 317,913,818 249,921,928 a Cumulative and/or Redeemable Preference Share - - b Subordinated Term Debt - - c Hybrid Capital Instruments - - d General loan loss provision 314,160,075 246,168,184 e Exchange Equalization Reserve 3,198,743 3,198,743 f Investment Adjustment Reserve 555,000 555,000 g Assets Revaluation Reserve - - h Other Reserves - -
Total Capital Fund (Tier I and Tier II) 3,734,498,766 3,069,210,209
1.3 CAPITAL ADEQUACY RATIOS Current Year Previous YearTier 1 Capital to Total Risk Weighted Exposures (After Bank's adjustments of Pillar II) 10.13% 11.52%Tier 1 and Tier 2 Capital to Total Risk Weighted Exposures (After Bank's adjustments of Pillar II) 11.08% 12.54%
CAPITAL ADEQUACY TABLEAs on 16.07.2015 (Ashadh End 2072)
Sanima Bank
FINANCIAL REPORT 2014/1542
Sche
dule
30 (K
ha)
In R
s.
Boo
k V
alue
Spe
cific
Pro
visi
on
Elig
ible
CR
MN
et V
alue
Ris
k W
eigh
t R
isk
Wei
ghte
d Ex
posu
res
ab
cd
=a-b
-ce
f=d
*eN
et V
alue
Ris
k W
eigh
t Am
ount
Ca
sh
Ba
lan
ce6
90
,66
3,2
51
-
69
0,6
63
,25
1
0%
-
53
8,3
87
,16
5
-
B
ala
nce
With
Ne
pa
l Ra
str
a B
an
k 6
87
,27
6,0
91
-
68
7,2
76
,09
1
0%
-
2,8
11
,03
9,2
29
-
G
old
-
-
0
%-
-
Inve
stm
en
t in
Ne
pa
les
e G
ove
rnm
en
t Se
curi
ties
5
,13
4,9
59
,66
0
-
5,1
34
,95
9,6
60
0%
-
2,1
34
,01
9,0
41
-
A
ll C
laim
s o
n G
ove
r nm
en
t of N
ep
al
26
,91
3,2
41
-
2
6,9
13
,24
1
0
%-
2
6,9
13
,24
1
-
Inve
stm
en
t in
Ne
pa
l Ra
str
a B
an
k s
ecu
ritie
s
-
-
-
0%
-
-
-
A
ll c l
aim
s o
n N
ep
al R
as
tra
Ba
nk
-
-
-
0%
-
-
-
C
laim
s o
n F
ore
ign
Go
vern
me
nt a
nd
Ce
ntr
al B
an
k (E
CA
0-1
)-
-
-
0
%-
-
-
Cla
ims
on
Fo
reig
n G
ove
rnm
en
t an
d C
en
tra
l Ba
nk
(EC
A -
2)
-
-
-
20
%-
-
-
Cla
ims
on
Fo
r eig
n G
ove
rnm
en
t an
d C
en
tra
l Ba
nk
(EC
A -
3)
-
-
-
50
%-
-
-
Cla
ims
on
Fo
reig
n G
ove
rnm
en
t an
d C
en
tra
l Ba
nk
(EC
A-4
-6)
-
-
-
10
0%
-
-
-
C
laim
s o
n F
ore
ign
Go
vern
me
nt a
nd
Ce
ntr
al B
an
k (E
CA
-7
)5
01
,16
9,3
68
-
50
1,1
69
,36
8
15
0%
75
1,7
54
,05
2
-
-
C
laim
s O
n B
IS, I
MF
, EC
B, E
C a
nd
on
Mu
ltila
tera
lD
eve
lop
me
nt B
an
ks (
MD
B's
) re
cog
niz
ed
by
the
fra
me
wo
rk
-
-
-
0%
-
-
-
Cla
ims
on
Oth
er
Mu
ltila
tera
l De
velo
pm
en
t Ba
nks
-
-
-
10
0%
-
-
-
C
laim
s o
n P
ub
lic S
ect
or
En
tity
(EC
A 0
-1)
-
-
20
%-
-
-
Cla
ims
on
Pu
blic
Se
cto
r E
ntit
y (E
CA
2)
-
-
-
50
%-
-
-
Cla
ims
on
Pu
blic
Se
cto
r E
ntit
y (E
CA
3-6
) -
-
-
1
00
%-
-
-
Cla
ims
on
Pu
blic
Se
cto
r E
ntit
y (E
CA
7)
-
-
15
0%
-
-
-
C
laim
s o
n d
om
es
tic b
an
ks th
at m
ee
t ca
pita
l ad
eq
ua
cy r
eq
uir
em
en
ts8
42
,42
9,5
26
-
84
2,4
29
,52
6
20
%1
68
,48
5,9
05
4
26
,15
8,8
92
85
,23
1,7
78
Cla
ims
on
do
me
stic
ba
nks
tha
t do
no
t me
et c
ap
ital a
de
qu
acy
re
qu
ire
me
nts
6,8
15
,52
1
-
6
,81
5,5
21
10
0%
6,8
15
,52
1
13
,81
6,9
02
1
3,8
16
,90
2
C
laim
s o
n fo
r eig
n b
an
k (E
CA
Ra
ting
0-1
) 1
,01
7,5
41
,77
3
-
1,0
17
,54
1,7
73
20
%2
03
,50
8,3
55
4
24
,30
2,5
83
84
,86
0,5
17
Cla
ims
on
fore
ign
ba
nk
(EC
A R
atin
g 2
) 2
54
,00
0,0
00
-
25
4,0
00
,00
0
50
%1
27
,00
0,0
00
1
44
,30
0,0
00
72
,15
0,0
00
Cla
ims
on
fore
ign
ba
nk
(EC
A R
atin
g 3
-6)
-
-
-
10
0%
-
-
-
C
laim
s o
n fo
reig
n b
an
k (E
CA
Ra
ting
7)
-
-
-
15
0%
-
-
-
C
laim
s o
n fo
r eig
n b
an
k in
corp
ora
ted
in S
AA
RC
re
gio
n o
pe
ratin
g w
ith a
b
uffe
r o
f 1%
ab
ove
the
ir r
es
pe
ctiv
e r
eg
ula
tory
ca
pita
l re
qu
ire
me
nt
93
4,1
77
,16
2
-
9
34
,17
7,1
62
2
0%
18
6,8
35
,43
2
1,0
62,1
38
,90
0
21
2,4
27
,78
0
C
laim
s o
n D
om
es
tic C
orp
ora
tes
1
5,0
23
,89
8,6
54
1
4,2
91
,62
9
15
,00
9,6
07
,02
5
10
0%
15
,00
9,6
07
,02
5
11
,57
4,5
65
,70
9
1
1,5
74
,56
5,7
09
Cla
ims
on
Fo
reig
n C
orp
ora
tes
(E
CA
0-1
) -
-
-
2
0%
-
-
-
C
laim
s o
n F
or e
ign
Co
rpo
rate
s (
EC
A 2
) -
-
-
5
0%
-
-
-
C
laim
s o
n F
ore
ign
Co
rpo
rate
s (
EC
A 3
-6)
-
-
-
10
0%
-
-
-
C
laim
s o
n F
ore
ign
Co
rpo
rate
s (
EC
A 7
) -
-
-
1
50
%-
-
-
Re
gu
lato
ry R
eta
il P
ort
folio
(N
ot O
verd
ue
) 8
,02
7,1
23
,10
1
3
60
,50
7,9
54
7
,66
6,6
15
,14
7
7
5%
5,7
49
,96
1,3
60
5,4
41
,19
9,9
25
4
,08
0,8
99
,94
3
Cla
ims
Fu
llfill
ing
all
crite
rio
n o
f re
gu
lato
ry r
eta
il e
xce
pt g
ran
ula
rity
-
-
10
0%
-
-
-
Cla
ims
se
cure
d b
y re
sid
en
tial p
rop
ert
ies
2,3
94
,86
3,1
54
-
2
,39
4,8
63
,15
4
6
0%
1,4
36
,91
7,8
92
1,1
45
,62
2,6
88
6
87
,37
3,6
13
Cla
ims
no
t fu
lly s
ecu
red
by
res
ide
ntia
l pro
pe
rtie
s
-
-
-
15
0%
-
-
-
C
laim
s s
ecu
red
by
res
ide
ntia
l pro
pe
rtie
s (
Ove
rdu
e)
6,5
64
,36
2
1,9
67
,75
7
-
4
,59
6,6
05
10
0%
4,5
96
,60
5
-
-
C
laim
s s
ecu
red
by
Co
mm
erc
ial r
ea
l es
tate
3
84
,62
3,5
86
-
38
4,6
23
,58
6
10
0%
38
4,6
23
,58
6
30
7,9
55
,50
8
3
07
,95
5,5
08
Pa
st d
ue
cla
ims
(e
xce
pt f
or
cla
im s
ecu
red
by
res
ide
ntia
l pro
pe
rtie
s)
34,4
76,0
94
7
,59
3,8
48
-
26
,88
2,2
46
15
0%
40
,32
3,3
70
61
,58
3,0
30
9
2,3
74
,54
5
H
igh
Ris
k C
laim
s
2,0
68
,53
1,0
74
34
9,0
46
14
,52
0,9
00
2
,05
3,6
61
,12
8
1
50
%3
,08
0,4
91
,69
2
1
,37
2,7
63
,43
7
2,0
59
,14
5,1
55
In
ves
tme
nts
in e
qu
ity a
nd
oth
er
cap
ital i
ns
tru
me
nts
of i
ns
titu
tion
s li
ste
d
in th
e s
tock
exc
ha
ng
e2
4,9
24
,52
0
-
24
,92
4,5
20
10
0%
24
,92
4,5
20
47
,53
7,7
22
4
7,5
37
,72
2
In
ves
tme
nts
in e
qu
ity a
nd
oth
er
cap
ital i
ns
tru
me
nts
of i
ns
titu
tion
s n
ot
liste
d in
the
sto
ck e
xch
an
ge
2,3
02
,60
0
-
2
,30
2,6
00
15
0%
3,4
53
,90
0
2,3
02
,60
0
3,4
53
,90
0
Sta
ff L
oa
n S
ecu
red
by
res
ide
tial p
rop
ert
y1
27
,75
8,9
49
-
12
7,7
58
,94
9
60
%7
6,6
55
,36
9
1
04
,85
6,8
08
62
,91
4,0
85
Inte
res
t Re
ceiv
ab
le /
Cla
im o
n G
ovt
. Se
curi
ties
11
,12
8,3
95
-
1
1,1
28
,39
5
0
%-
1
,82
5,3
37
-
C
as
h in
Tr a
ns
it a
nd
oth
er
cas
h it
em
s in
pro
ces
s o
f co
llect
ion
42
,03
4,8
30
-
4
2,0
34
,83
0
2
0%
8,4
06
,96
6
90
,80
8,5
85
1
8,1
61
,71
7
O
the
r A
ss
ets
(a
s p
er
atta
chm
en
t)
2,8
22
,66
8,7
77
1,9
24
,69
5,5
87
-
8
97
,97
3,1
90
1
00
%8
97
,97
3,1
90
1
,58
0,6
34
,00
8
1,5
80
,63
4,0
08
41
,066
,843
,689
1,
934,
606,
238
389,
320,
483
38
,742
,916
,969
28
,162
,334
,741
29
,312
,731
,311
20,9
83,5
02,8
83
Cu
rre
nt
Ye
ar
Pre
viou
s Ye
arA
. Bal
ance
She
et E
xpos
ures
As
on
16.
07.2
015
(Ash
ad
h E
nd
207
2)R
ISK
WE
IGH
TE
D E
XP
OS
UR
E F
OR
CR
ED
IT R
ISK
Con
tinue
...
Sanima Bank
FINANCIAL REPORT 2014/1543
B. O
ff B
alan
ce S
heet
Exp
osur
es
Gro
ss B
ook
Val
ue
Spe
cific
Pro
visi
on
Elig
ible
CR
M
Net
Val
ueR
isk
Wei
ght
Ris
k W
eigh
ted
Expo
sure
s N
et V
alue
Ris
k W
eigh
ted
Expo
sure
s
Re
voca
ble
Co
mm
itme
nts
-
0%
-
-
-
Bill
s U
nd
er
Co
llect
ion
87
,10
6,2
02
.91
87
,10
6,2
03
0%
-
11
,57
2,2
78
.00
-
Fo
r wa
rd F
ore
ign
Exc
ha
ng
e C
on
tra
ct L
iab
ilitie
s-
-
10
%-
-
-
LC
Co
mm
itme
nts
With
Ori
gin
al M
atu
rity
Up
to 6
mo
nth
s D
om
es
tic
Co
unt
erp
art
y6
25
,82
9,2
65
5
8,7
08
,81
5.3
9
56
7,1
20
,45
0
20
%1
13
,42
4,0
90
.00
7
71
,78
8,1
13
.90
15
4,3
57
,62
3
Fo
reig
n C
ou
nte
rpa
rty
(EC
A R
atin
g 0
-1)
-
-
-
20
%-
-
-
Fo
r eig
n C
ou
nte
rpa
rty
(EC
A R
atin
g 2
)-
-
-
5
0%
-
-
-
Fo
reig
n C
ou
nte
rpa
rty
(EC
A R
atin
g 3
-6)
-
-
-
10
0%
-
-
-
Fo
reig
n C
ou
nte
rpa
rty
(EC
A R
atin
g 7
)-
-
-
1
50
%-
-
-
LC
Co
mm
itme
nts
With
Ori
gin
al M
atu
rity
Ove
r 6
mo
nth
s D
om
es
tic
Co
un
terp
arty
12
9,1
45
,93
6.3
7
-
1
29
,14
5,9
36
5
0%
64
,57
2,9
68
.19
67
,13
1,4
78
.34
3
3,5
65
,73
9
Fo
reig
n C
ou
nte
rpa
rty
(EC
A R
atin
g 0
-1)
-
-
-
20
%-
-
-
Fo
r eig
n C
ou
nte
rpa
rty
(EC
A R
atin
g 2
)-
-
-
5
0%
-
-
-
F
ore
ign
Co
un
terp
art
y (E
CA
Ra
ting
3-6
)-
-
-
1
00
%-
-
-
Fo
r eig
n C
ou
nte
rpa
rty
(EC
A R
atin
g 7
)-
-
-
1
50
%-
-
-
Bid
Bo
nd
, Pe
rfo
rma
nce
Bo
nd
an
d C
ou
nte
r g
ua
ran
tee
Do
me
stic
C
ou
nte
rpa
r ty
1,9
43
,61
0,7
82
63
1,2
91
,47
5
64
,37
3,6
52
.62
1
,24
7,9
45
,65
4
5
0%
62
3,9
72
,82
7.1
5
61
2,4
44
,37
3.3
5
3
06
,22
2,1
87
Fo
reig
n C
ou
nte
rpa
rty
(EC
A R
atin
g 0
-1)
-
-
-
20
%-
-
-
Fo
reig
n C
ou
nte
rpa
rty
(EC
A R
atin
g 2
)-
-
-
5
0%
-
-
-
F
ore
ign
Co
un
terp
art
y (E
CA
Ra
ting
3-6
)-
-
-
1
00
%-
-
-
Fo
r eig
n C
ou
nte
rpa
rty
(EC
A R
atin
g 7
)-
-
-
1
50
%-
-
-
Un
de
rwri
ting
co
mm
itme
nts
-
-
-
5
0%
-
-
-
L
en
din
g o
f Ba
nk'
s S
ecu
ritie
s o
r P
os
ting
of S
ecu
ritie
s a
s c
olla
tera
l-
-
-
1
00
%-
-
-
Re
pu
rch
as
e A
gre
em
en
ts, A
ss
ets
sa
le w
ith r
eco
urs
e-
-
-
1
00
%-
-
-
Ad
van
ce P
aym
en
t Gu
ara
nte
e
71
8,5
95
,89
7
9,4
60
,46
0
7
09
,13
5,4
37
1
00
%7
09
,13
5,4
36
.61
3
85
,66
0,3
25
.45
38
5,6
60
,32
5
F
ina
nc i
al G
ua
ran
tee
-
-
1
00
%-
-
-
Acc
ep
tan
ces
an
d E
nd
ors
em
en
ts
26
1,8
56
,45
6
-
2
61
,85
6,4
56
1
00
%2
61
,85
6,4
56
.23
2
88
,46
5,8
31
.50
28
8,4
65
,83
2
U
np
aid
po
r tio
n o
f Pa
rtly
pa
id s
ha
res
an
d S
ecu
ritie
s
-
-
-
10
0%
-
-
-
Ir
revo
cab
le C
red
it co
mm
itme
nts
(S
ho
rt T
erm
)3
,50
3,8
19
,13
8
-
3,5
03
,81
9,1
38
20
%7
00
,76
3,8
27
.54
2
,36
7,3
10
,29
6.6
9
47
3,4
62
,05
9
Ir
revo
cab
le C
red
it co
mm
itme
nts
(L
on
g T
erm
)-
-
5
0%
-
91
,83
8,6
19
.78
4
5,9
19
,31
0
C
laim
s o
n fo
reig
n b
an
k in
corp
ora
ted
in S
AA
RC
re
gio
n o
pe
ratin
g w
ith a
b
uffe
r o
f 1%
ab
ove
the
ir r
es
pe
ctiv
e r
eg
ula
tory
ca
pita
l re
qu
ire
me
nt
-
-
2
0%
-
-
-
O
the
r C
on
ting
en
t Lia
bili
ties
1
2,1
62
,48
5
-
12
,16
2,4
85
10
0%
12
,16
2,4
84
.82
9,5
02
,78
0.3
0
9
,50
2,7
80
U
np
aid
Gu
ara
nte
e C
laim
s1
,69
7,0
00
1
,69
7,0
00
20
0%
3,3
94
,00
0.0
0
-
-
TO
TAL
7,28
3,82
3,16
2
63
1,29
1,47
5
132,
542,
928
6,
519,
988,
759
2,48
9,28
2,09
1
4,
605,
714,
097
1,
697,
155,
855
To
tal R
WE
for
cred
it R
isk
Bef
ore
Adj
ustm
ent
(A) +
(B)
48,3
50,6
66,8
52
2,56
5,89
7,71
3
52
1,86
3,41
1
45,2
62,9
05,7
27
30,6
51,6
16,8
31
33,9
18,4
45,4
09
22
,680
,658
,738
Ad
just
men
ts u
nd
er P
illa
r II
Add
: 10
% o
f the
loan
and
faci
litie
s in
exc
ess
of S
ingl
e O
blig
or
Lim
its (
6.4
a 3)
A
dd:
1% o
f the
con
trac
t (s
ale)
val
ue in
cas
e of
the
sal
e of
cre
dit
with
rec
ours
e (6
.4 a
4)
Tota
l RW
E fo
r C
redi
t R
isk
(Afte
r ba
nk's
Adj
ustm
ents
of P
illar
II)
RIS
K W
EIG
HT
ED
EX
PO
SU
RE
FO
R C
RE
DIT
RIS
K
As
on
16.
07.2
015
(Ash
adh
En
d 2
072)
Sanima Bank
FINANCIAL REPORT 2014/1544
Sche
dule
30(G
a)
Cre
dit E
xpos
ures
Dep
osits
with
B
ank
Dep
osits
with
ot
her
bank
s/FI
G
old
Gov
t.& N
RB
Sec
uriti
es
G'te
e of
G
ovt.
of
Nep
al
Sec
/G'te
e of
ot
her
Sov
erei
gns
G'te
e of
dom
estic
ba
nks
G'te
e of
M
DB
s S
ec/G
'tee
of
Fore
ign
Ban
ks
Tota
l
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
(I)B
alan
ce S
heet
Exp
osur
esC
as
h B
ala
nce
Ba
lan
ce W
ith N
ep
al R
as
tra
Ba
nk
Go
ldIn
ves
tme
nt i
n N
ep
ale
se
Go
vern
me
nt S
ecu
ritie
s
All
Cla
ims
on
Go
vern
me
nt o
f Ne
pa
lIn
ves
tme
nt i
n N
ep
al R
as
tra
Ba
nk
se
curi
ties
A
ll cl
aim
s o
n N
ep
al R
as
tra
Ba
nk
Cla
ims
on
Fo
reig
n G
ove
rnm
en
t an
d C
en
tra
l Ba
nk
(EC
A 0
-1)
Cla
ims
on
Fo
reig
n G
ove
rnm
en
t an
d C
en
tra
l Ba
nk
(EC
A -
2)
-
Cla
ims
on
Fo
reig
n G
ove
rnm
en
t an
d C
en
tra
l Ba
nk
(EC
A -
3)
-
Cla
ims
on
Fo
reig
n G
ove
rnm
en
t an
d C
en
tra
l Ba
nk
(EC
A-4
-6)
-
Cla
ims
on
Fo
reig
n G
ove
rnm
en
t an
d C
en
tra
l Ba
nk
(EC
A -
7)
-
Cla
ims
On
BIS
, IM
F, E
CB
, EC
an
d o
n M
ulti
late
ral
Cla
ims
on
Oth
er
Mu
ltila
tera
l De
velo
pm
en
t Ba
nks
-
C
laim
s o
n P
ub
lic S
ect
or
En
tity
(EC
A 0
-1)
-
Cla
ims
on
Pu
blic
Se
cto
r E
ntit
y (E
CA
2)
-
Cla
ims
on
Pu
blic
Se
cto
r E
ntit
y (E
CA
3-6
) -
C
laim
s o
n P
ub
lic S
ect
or
En
tity
(EC
A 7
) -
C
laim
s o
n d
om
es
tic b
an
ks th
at m
ee
t ca
pita
l ad
eq
ua
cy
req
uir
em
en
ts-
C
laim
s o
n d
om
es
tic b
an
ks th
at d
o n
ot m
ee
t ca
pita
l ad
eq
ua
cy
req
uir
em
en
ts-
C
laim
s o
n fo
reig
n b
an
k (E
CA
Ra
ting
0-1
) -
C
laim
s o
n fo
reig
n b
an
k (E
CA
Ra
ting
2)
-
Cla
ims
on
fore
ign
ba
nk
(EC
A R
atin
g 3
-6)
-
Cla
ims
on
fore
ign
ba
nk
(EC
A R
atin
g 7
) -
C
laim
s o
n fo
reig
n b
an
k in
corp
ora
ted
in S
AA
RC
re
gio
n o
pe
ratin
g
with
a b
uffe
r o
f 1%
ab
ove
the
ir r
es
pe
ctiv
e r
eg
ula
tory
ca
pita
l re
qu
ire
me
nt
-
Cla
ims
on
Do
me
stic
Co
rpo
rate
s
14
,29
1,6
29
14
,29
1,6
29
Cla
ims
on
Fo
reig
n C
orp
ora
tes
(E
CA
0-1
) -
C
laim
s o
n F
ore
ign
Co
rpo
rate
s (
EC
A 2
) -
C
laim
s o
n F
ore
ign
Co
rpo
rate
s (
EC
A 3
-6)
-
Cla
ims
on
Fo
reig
n C
orp
ora
tes
(E
CA
7)
-
Re
gu
lato
ry R
eta
il P
ort
folio
(N
ot O
verd
ue
) 8
1,6
95
,41
7
2
78
,81
2,5
37
36
0,5
07
,95
4
Cla
ims
Fu
llfill
ing
all
crite
rio
n o
f re
gu
lato
ry r
eta
il e
xce
pt g
ran
ula
rity
-
Cla
ims
se
cure
d b
y re
sid
en
tial p
rop
ert
ies
-
C
laim
s n
ot f
ully
se
cure
d b
y re
sid
en
tial p
rop
ert
ies
-
C
laim
s s
ecu
red
by
res
ide
ntia
l pro
pe
rtie
s (
Ove
rdu
e)
-
Cla
ims
se
cure
d b
y C
om
me
rcia
l re
al e
sta
te
-
Pa
st d
ue
cla
ims
(e
xce
pt f
or
cla
im s
ecu
red
by
res
ide
ntia
l p
rop
ert
ies
)-
H
igh
Ris
k C
laim
s
13
,50
0,0
00
1,0
20
,90
0
1
4,5
20
,90
0
In
ves
tme
nts
in e
qu
ity a
nd
oth
er
cap
ital i
ns
tru
me
nts
of i
ns
titu
tion
s
liste
d in
the
sto
ck e
xch
an
ge
-
Inve
stm
en
ts in
eq
uity
an
d o
the
r ca
pita
l in
str
um
en
ts o
f in
stit
utio
ns
n
ot l
iste
d in
the
sto
ck e
xch
an
ge
-
Oth
er
As
se
ts (
as
pe
r a
ttach
me
nt)
-
To
tal
109,
487,
046
-
27
9,83
3,43
7
-
-
-
-
-
- 38
9,32
0,48
3
ELIG
IBLE
CR
EDIT
RIS
K M
ITIG
AN
TSA
s on
16.
07.2
015
(Ash
adh
End
2072
)In
Rs.
Con
tinue
...
Sanima Bank
FINANCIAL REPORT 2014/1545
ELIG
IBLE
CR
EDIT
RIS
K M
ITIG
AN
TSA
s on
16.
07.2
015
(Ash
adh
End
2072
)
Off
Bal
ance
She
et E
xpos
ures
Fo
rwa
rd F
ore
ign
Exc
ha
ng
e C
on
tra
ct L
iab
ilitie
s-
L
C C
om
mitm
en
ts W
ith O
rig
ina
l Ma
turi
ty U
p to
6 m
on
ths
(d
om
es
tic)
58
,70
8,8
15
58
,70
8,8
15
EC
A R
atin
g 0
-1
-
EC
A R
atin
g 2
-
E
CA
Ra
ting
3-6
-
E
CA
Ra
ting
7
-
LC
Co
mm
itme
nts
With
Ori
gin
al M
atu
rity
Ove
r 6
mo
nth
s
(do
me
stic
)-
-
E
CA
Ra
ting
0-1
-
E
CA
Ra
ting
2
-
EC
A R
atin
g 3
-6
-
EC
A R
atin
g 7
-
B
id B
on
d, P
erf
orm
an
c e B
on
d a
nd
Co
un
ter
Gu
ara
nte
e D
om
es
tic
Co
un
terp
art
y6
4,3
73
,65
3
6
4,3
73
,65
3
E
CA
Ra
ting
0-1
-
E
CA
Ra
ting
2
-
EC
A R
atin
g 3
-6
-
EC
A R
atin
g 7
-
G
ua
ran
tee
Invo
ked
bu
t ye
t no
t ho
no
ure
d-
U
nd
erw
ritin
g c
om
mitm
en
ts
-
Le
nd
ing
of B
an
k's
Se
curi
ties
or
Po
stin
g o
f Se
curi
ties
as
co
llate
ral
-
Re
pu
rch
as
e A
gre
em
en
ts, A
ss
ets
sa
le w
ith r
eco
urs
e (
incl
ud
ing
re
po
/ re
vers
e r
ep
o)
-
Ad
van
ce P
aym
en
t Gu
ara
nte
e
9,4
60
,46
0
9,4
60
,46
0
Fin
an
cia
l Gu
ara
nte
e
-
Acc
ep
tan
ces
an
d E
nd
ors
em
en
ts
-
Un
pa
id p
or t
ion
of P
art
ly p
aid
sh
are
s a
nd
Se
curi
ties
-
Ir
revo
cab
le C
red
it co
mm
itme
nts
(S
ho
rt T
erm
) -
Ir
revo
cab
le C
red
it co
mm
itme
nts
(L
on
g T
erm
)-
O
the
r C
on
ting
en
t Lia
bili
ties
-
To
tal
132,
542,
928
-
-
-
-
-
-
-
-
13
2,54
2,92
8
Gra
nd T
otal
242,
029,
974
-
27
9,83
3,43
7
-
-
-
-
-
-
521,
863,
411
Sanima Bank
FINANCIAL REPORT 2014/1546
Shedule 30 (Gha)
In Rs.
Year 1 (2011/12) Year 2 (2012/13) Year 3 (2013/14)Net Interest Income 418,583,608 655,532,497 818,717,766 Commission and Discount Income 11,251,196 23,667,788 39,824,742 Other Operating Income 44,618,555 68,853,461 85,437,840 Exchange Fluctuation Income (175,238) 27,237,310 146,889,410 Addition / Deduction Interest Suspense during the period 8,330,653 371,471 10,360,936 Gross income (a) 482,608,774 775,662,527 1,101,230,694 - Alfa (b) 15% 15% 15%Fixed Percentage of Gross Income [c=(a×b)] 72,391,316 116,349,379 165,184,604 Capital Requirement for operational risk (d) (average of c) 117,975,100 83,309,095 Risk Weight (reciprocal of capital requirement of 10%) in times (e) 10 10Equivalent Risk Weight Exposure [f=(d×e)] 1,179,750,998 833,090,952 PILLAR-II ADJUSTMENTSIf Gross Income for all the last three years is negative (6.4 a 8)Total Credit and Investment (net of Specific Provision)Capital Requirement for operational risk (5%)Risk Weight (reciprocal of capital requirement of 10%) in times 10 10Equivalent Risk Weight Exposure [g]Equivalent Risk Weight Exposure [h=f+g] 1,179,750,998 833,090,952
This Year Rs.Particulars
Previous Year
As on 16.07.2015 (Ashad End 2072)RISK WEIGHTED EXPOSURE FOR OPERATIONAL RISK
Schedule 30 (Nga)
In Rs.
S.No. Currency Open Position (FCY) Open Position (NPR) Relevant Open Position
1 INR 692,318,563 1,108,228,940 1,108,228,940 624,568,719 2 USD (227,394) (23,103,262) 23,103,262 33,620,199 3 GBP 16,206 2,561,454 2,561,454 1,467,277 4 EUR 92,303 10,186,072 10,186,072 3,868,421 5 THB 80 231 231 21,134 6 CHF 970 102,563 102,563 137,720 7 AUD 22,397 1,681,040 1,681,040 2,640,706 8 CAD 1,095 85,744 85,744 187,215 9 SGD 300 22,245 22,245 408,061 10 JPY 1,489,000 1,212,046 1,212,046 1,035,000 11 HKD 2,310 30,169 30,169 1,680 12 DKK - - - - 13 SEK 500 5,933 5,933 - 14 SAR 39,269 1,038,272 1,038,272 309,413 15 QAR 8,488 231,340 231,340 72,646 16 AED 81,625 2,205,099 2,205,099 203,131 17 MYR 8,277 215,616 215,616 - 18 KRW 7,000 621 621 7,939.00 19 CNY 19,027 309,474 309,474 56,156.85
.. - - - 1,151,220,121 668,605,417
5% 5%57,561,006 33,430,271
10 10575,610,060 334,302,709
RISK WEIGHTED EXPOSURE FOR MARKET RISKAs on 16.07. 2015 (Ashadh End 2072)
Previous Year
Equivalent Risk Weight Exposure [e=(c×d)]
Total Open Position (a)Fixed Percentage (b)Capital Charge for Market Risk [c=(a×b)]Risk Weight (reciprocal of capital requirement of 10%) in times (d)
Current Year
Sanima Bank
FINANCIAL REPORT 2014/1547
Indi
cato
rsFY
206
7/68
FY 2
068/
69FY
206
9/70
FY 2
070/
71FY
207
1/72
1Pe
rcen
t of N
et P
rofit
/Gro
ss In
com
ePe
rcen
t14
.39
9.92
16
.96
18.6
7
21
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2
Ear
ning
Per
Sha
reRs
. 7.
70
6.
04
15.1
3
19
.28
24.4
7
3M
arke
t Valu
e Pe
r Sha
reRs
. 49
7.00
22
5
260
63
8
555
4
Price
Ear
ning
Rat
ioTi
mes
64.5
5
37
.25
17.1
8
33
.09
22.6
8
5D
ivid
end
(Inclu
ding
Bon
us) o
n Sh
are
Cap
ital
Perc
ent
6.50
5.50
10
.53
15.7
9
21
.05
6
Cas
h D
ivid
end
on S
har e
Cap
ital
Perc
ent
6.50
5.50
0.
53
0.79
1.
05
7In
tere
st In
com
e/Lo
an &
Adv
ance
sPe
rcen
t13
.23
12.1
6
11
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9.79
8.
92
8St
aff E
xpen
ses/
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l Ope
ratin
g E
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ses
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39.8
4
34
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38.6
0
39
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3
9In
ter e
st E
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ses /
Tot
al D
epos
it an
d Bo
rrow
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Perc
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9.74
6.69
5.
31
4.66
3.
94
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com
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t0.
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1.51
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f Exp
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sPe
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21.6
6
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5
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Net
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sPe
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41
1.
26
2.00
2.
07
2.18
13
Net
Pro
fit/T
otal
Ass
ets
Perc
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1.66
0.89
1.
39
1.46
1.
55
14To
tal C
r edi
t/D
epos
itPe
rcen
t10
1.25
86
.25
85.7
2
82
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7
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pera
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s/To
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sset
sPe
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90
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69
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16
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10
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plem
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aptia
lPe
rcen
t0.
87
0.
93
0.96
1.
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0.94
c)
Tot
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apita
l Fun
dPe
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20.7
4
14
.87
12.5
4
11
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17
Liqu
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Pe
r cen
t26
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30.2
4
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18
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form
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0.47
9
0.
027
0.01
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0.
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Weig
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rest
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4.04
3.38
3.
39
4.01
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83
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et-W
orth
Rs.
2,10
8,61
0,95
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129,
580,
522
2,42
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taff
Nos
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723
223
131
1
415
23
No.
of B
r anc
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incl.
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)N
os.
21
22
24
28
38
24Ba
se R
ate
Perc
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-
-
10.0
4
8.
22
7.50
25
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rn o
n E
quity
Perc
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7.36
5.72
12.5
815
.09
18.1
9
26Re
turn
on
Ass
ets
Perc
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1.66
0.88
1.39
1.46
1.
55
27To
tal A
sset
s to
Shar
ehol
ders
Fun
dTi
mes
4.44
6.44
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0
11
.66
Part
icul
ars
Pri
ncip
al In
dic
ato
rsSc
hedu
le 3
1
Assets with a value less than Rs. 10,000 are charged o� as a revenue expense irrespective of its useful life in the year of purchase.
Leasehold improvements are capitalized at cost and amortized over the lease period or ten years whichever is earlier. The amount of amortization is charged to revenue.
b) Computer Software Acquired computer software licenses are capitalized on the basis of cost incurred to acquire and bring to use the speci�c software and are amortized over their useful life estimated as 5 years from the date of acquisition or over the period of the license, whichev-er is less.
c) DepreciationLand is not depreciated. The depreciable amount of an item of property, plant and equipment is allocated on systematic basis over its useful life and is depreciated as follows:
Depreciation on assets acquired during the year is computed on a proportionate basis from date of purchase or put to use, which-ever is earlier.
Derecognition of assets: The gain or losses arising from derecognition of an item of property, plant and equipment is included in pro�t or loss when the item is derecognized.
5.11. Stationery StockStationery stock is valued at cost and expended as and when it is used for consumption on FIFO method.
5.12. Bullion Stock under consignmentThe Bank holds precious metals (gold and silver) in its possession arising from consignment transaction as a custodian. The risks and rewards (price risk) pertaining to the assets is vested with the consignor. Bank has purchased 140 KGs Silver which is shown under 'Other Assets'.
5.13. Non-Banking Assets (NBA) Non-Banking Assets is valued at lower of loan amount or fair market value of the assets acquired. Provisions for NBA are made in accordance with the Nepal Rastra Bank Directives.
5.14. Other AssetsOther assets are shown net of other liabilities when party is same and the Bank has legal right to set o�.
5.15. BorrowingsBorrowings comprise of local and foreign currencies' inter-bank borrowing. Borrowings are recorded at the full value and recog-nized on the e�ective dates mentioned in the contract.
5.16. DepositsDeposits include local and foreign currencies' current deposits, savings deposits, call deposits, �xed deposits, margin deposits and other deposits of the customers held by the Bank. Deposits are stated at full value and are derecognized at the time of its withdrawal.
c) Write O� Unrecoverable loans and advances are written o� in accordance with the write o� By-laws approved by the Board of Directors and NRB, without prejudice to Bank’s right to recover such loans and advances.
d) Recovery from Written-O� LoansRecovery from written-o� loans in earlier as well as current year is recognized as income in the year such amount is actually recov-ered from the borrower.
e) Interest ReceivableInterest accrued on loans and investments are recognized on daily basis on the outstanding balances at the end of the day. Interest receivables on loans are stated at full value and are disclosed net of interest suspense under 'Accrued Interest on Loan' under 'Other Assets' in Schedule 16 of the Financial Statement.
f) Recovery of Loan and InterestLoan is recovered in the sequence of penal, interest and principal amount.
g) Sta� Loans and Advances The Bank has a policy to provide loans to its sta� under Employment Service Regulations at a subsidized interest rate. These loans are presented under 'Other Assets' in Schedule-16 as per NRB Directives.
5.9. Investments Investments are classi�ed as held for trading, held to maturity and available for sale in accordance with NRB Directives.
a. Held for Trading :Investments that are made for the purpose of generating pro�t from short term �uctuations in price are classi�ed under this category. These investments are marked to market on a daily basis and di�erence is re�ected in the pro�t and loss account.
b. Held to Maturity: The investments made with positive intent and ability of the Bank to hold till maturity is classi�ed as held to maturity investments. The held to maturity investments are valued at amortized cost i.e. the cost price less any impairments (if applicable). The impair-ments are included in the pro�t and loss account for the period.
c. Available for Sale: All other investments that are neither “held for trading” nor “held to maturity” are classi�ed under this category. These investments are marked to market on a regular basis and the di�erence is adjusted through reserves. 2% of investment classi�ed as 'Available for Sale' is appropriated to Investment Adjustment Reserve as required by NRB Directives. The reserve is considered as Tier 2 Capital.
In case of investments unquoted within stipulated time frame prescribed by NRB Directives, Investment Adjustment Reserve is maintained to the extent of 100% of such investments.
Treasury Bills being discounted instruments are disclosed at cost including the pro rata discount accreted for the holding period.
All Investments are subject to regular review as required by Nepal Rastra Bank Directives.
5.10. Property, Plant and Equipment & Depreciationa) Fixed AssetsFixed assets except land are stated at acquisition cost less accumulated depreciation. Acquisition cost includes expenditures that are directly attributable to the acquisition of the assets.
Sanima Bank
FINANCIAL REPORT 2014/1548
Significant Accounting Policies
1. General Information Sanima Bank Limited (“The Bank”) is a limited liability company domiciled in Nepal. The registered o�ce of the Bank is located at Alakapuri Building, Naxal, Kathmandu, Nepal.
The Bank has registered with the O�ce of the Company Registrar on 30th June 2004 (16th Ashadh 2061), obtained license from Nepal Rastra Bank on 26th November 2004 (11th Mangsir 2061) and came into operation from 6th December 2004 (21st Mangsir 2061) to conduct banking business in Nepal. The Bank is listed in Nepal Stock Exchange Limited. Furthermore, the Bank has obtained license to operate as ‘A’ class �nancial institution on 13th February 2012 (1st Falgun 2068) and started operation as ‘A’ class �nancial institution w.e.f. 15th February 2012 (3rd Falgun 2068) i.e. upgraded to ‘A’ class Financial Institution.
2. Approval of Financial Statements by Board of DirectorsThe accompanied �nancial statements have been adopted by the Board of Directors on its meeting held on 2nd September 2015 (16th Bhadra 2072) and recommended for its approval by the Annual General Meeting of the shareholders.
3. Basis of Preparation & Use of EstimateThe �nancial statements are prepared under historical cost convention following accrual basis of accounting except for interest income on loans and advance which is accounted for on cash basis. The preparation of �nancial statements in conformity with NAS and GAAP requires management to use certain critical accounting estimates. It also requires management to exercise judgment in process of developing and applying the Bank’s accounting policies. The Management believes that estimates and policies so applied are reasonable in the circumstances of the cases. All the formats of the �nancial statements are in accordance with the NRB Directives.
4. Statement of Compliance The �nancial statements has been prepared in accordance with Nepal Accounting Standards (“NAS”) issued by the Nepal Account-ing Standards Board except otherwise stated, Generally Accepted Accounting Principles (“GAAP”), Bank and Financial Institutions Act, 2063 (“BAFIA”) and other requirements of Directives, circulars and guidelines issued by NRB and in conformity with the Companies Act, 2063.
5. Signi�cant Accounting PolicesThe principal accounting policies applied by the Bank in the preparation of these �nancial statements are presented below. These polices have been consistently applied to all the years presented unless stated otherwise.
5.1. Interest Income Interest income on loans and advances is recognized on cash basis as per the Nepal Rastra Bank (NRB) Directives though this practice is not in accordance with NAS - 7 (Revenue) which prescribes the revenue to be recognized on accrual basis.
5.2. Commission Income Commission income is recognized on accrual basis over the period of contract. However, it is the practice of the Bank to recognize income on cash basis up to Rs. 50,000 for service period of more than one �nancial year which is not in accordance with NAS-7.
5.3. Dividend Income Dividend on equity shares is recognized as income when the right to receive the same is established. Cash dividends declared by resident companies are recorded at net of withholding tax.
5.4. Foreign Exchange Transactions Foreign currency transactions are recorded at the rate prevailing as on the date of transaction. Di�erence between buying and selling rates of foreign exchange, at the time of transaction, is accounted for as "Trading Gain/Loss" at the time of trading under
“Exchange Gain/ (Loss)” in Schedule - 22
Foreign currency assets and liabilities as on balance sheet date are translated into Nepalese Rupees at the mid exchange rate prevailing on the Balance Sheet date and any di�erence arising out of such transaction is recognized as “Revaluation Gain/ (Loss)”. This is presented under “Revaluation Gain/ (Loss)” in Schedule – 22. Twenty-�ve percent of revaluation gain is transferred to Exchange Fluctuation Fund through Pro�t and Loss Appropriation Account as required by Nepal Rastra Bank Directives.
5.5. Interest Expense Interest on deposit liabilities and borrowings is accounted for on accrual basis in functional currency.
5.6. Employment Bene�ts The Bank provides its employees with the following retirement bene�ts:
a. Provident fund:Provident fund contribution is recognized as expenses and deposited into the approved retirement fund (Employee Provident Fund O�ce).
b. Accumulated Leave :Accumulated leave payable to sta� is recognized on accrual basis as per the Employee Service Regulation of the Bank. c. Gratuity:Gratuity liability of sta� is accrued only after completion of a �xed period of full time employment with the Bank in accordance with the Employee Service Regulation. Leave and gratuity liability is not made as per actuarial valuation as required by NAS-14 Employee Bene�ts.
5.7. Taxationa) Current Income TaxProvision for income tax has been made on the basis of the Income Tax Act, 2058 and amendments thereto.
b) Deferred Income Tax Deferred taxes are accounted using the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary di�erences between the �nancial statement’s carrying amounts of existing assets and liabilities, and their respective tax bases. Deferred tax assets and liabilities are measured using tax rates expected to apply to taxable income in the years in which those temporary di�erences are expected to be recovered or settled based on the laws that have been enacted or subsequently enacted by the reporting date. Deferred tax assets arising from temporary di�erence and unused tax losses are recognized to the extent there is virtual certainty that su�cient future taxable income will be available against which such deferred tax assets can be realized (according to NAS-09 “Income Taxes”).
5.8. Loans and Advances including Bills Purchased a) Classi�cationLoans and advances, overdrafts and bills purchased include direct �nance 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 classi�ed as per NRB Directives. Loans and advances, overdrafts and bills purchased are shown net of mandatory provisions as required by NRB Directives.
b) Loan Loss Provision The provision for possible losses on loans, advances and bills purchased are provided at the rates between 1 percent and 100 percent, according to classi�cation of such risk assets as per Nepal Rastra Bank Directives.
5.17. Unearned IncomeUnearned income comprises of income received in advance on account of LC/Guarantee Fees issued with a risk period of more than 1 year period and for fees with more than Rs. 50,000 and income from forward contract.
They are recognized as liability at the time of its receipt and are derecognized as and when income accrues and/or risk period expires and disclosed in Schedule-7.
5.18. Provisions, Contingent Liabilities And Contingent Assets The Bank creates a provision when there is a present obligation of the entity arising from past events, the settlements of which is expected to result in an out�ow from the entity of resources embodying economic bene�ts and a reliable estimate can be made of the amount of the obligation.
A disclosure for contingent liability is made when there is a present obligation that may or may not, require an out�ow of resourc-es. When there is a possible obligation or present obligation in respect of which the likelihood of out�ow of resources is remote, no provision or disclosure is made in the �nancial statement. Contingent liabilities are shown in Schedule 17
Contingent assets are not recognized in the �nancial statements. However, contingent assets are assessed continually and if it is virtually certain that an economic bene�t will arise, the assets and related income are recognized in the period in which the change occurs.
5.19. Operating Lease Commitment The Bank has taken various properties on cancellable long term lease. Since the Bank possesses the right to terminate the said lease before its maturity by giving a notice of speci�ed period, the future liability the Bank is limited to lease payable for notice period only.
The expenses under operating leases are booked under 'Leasehold Assets' and written o� in 10 years or term of lease, whichever is less.
5.20. Rounding O� and Regrouping/Reclassi�cationThe Financial Statements are presented in Nepalese Rupees rounded to the nearest Rupee. Previous year amount has been regrouped/reclassi�ed, wherever necessary to facilitate comparison.
Schedule 32
Assets with a value less than Rs. 10,000 are charged o� as a revenue expense irrespective of its useful life in the year of purchase.
Leasehold improvements are capitalized at cost and amortized over the lease period or ten years whichever is earlier. The amount of amortization is charged to revenue.
b) Computer Software Acquired computer software licenses are capitalized on the basis of cost incurred to acquire and bring to use the speci�c software and are amortized over their useful life estimated as 5 years from the date of acquisition or over the period of the license, whichev-er is less.
c) DepreciationLand is not depreciated. The depreciable amount of an item of property, plant and equipment is allocated on systematic basis over its useful life and is depreciated as follows:
Depreciation on assets acquired during the year is computed on a proportionate basis from date of purchase or put to use, which-ever is earlier.
Derecognition of assets: The gain or losses arising from derecognition of an item of property, plant and equipment is included in pro�t or loss when the item is derecognized.
5.11. Stationery StockStationery stock is valued at cost and expended as and when it is used for consumption on FIFO method.
5.12. Bullion Stock under consignmentThe Bank holds precious metals (gold and silver) in its possession arising from consignment transaction as a custodian. The risks and rewards (price risk) pertaining to the assets is vested with the consignor. Bank has purchased 140 KGs Silver which is shown under 'Other Assets'.
5.13. Non-Banking Assets (NBA) Non-Banking Assets is valued at lower of loan amount or fair market value of the assets acquired. Provisions for NBA are made in accordance with the Nepal Rastra Bank Directives.
5.14. Other AssetsOther assets are shown net of other liabilities when party is same and the Bank has legal right to set o�.
5.15. BorrowingsBorrowings comprise of local and foreign currencies' inter-bank borrowing. Borrowings are recorded at the full value and recog-nized on the e�ective dates mentioned in the contract.
5.16. DepositsDeposits include local and foreign currencies' current deposits, savings deposits, call deposits, �xed deposits, margin deposits and other deposits of the customers held by the Bank. Deposits are stated at full value and are derecognized at the time of its withdrawal.
c) Write O� Unrecoverable loans and advances are written o� in accordance with the write o� By-laws approved by the Board of Directors and NRB, without prejudice to Bank’s right to recover such loans and advances.
d) Recovery from Written-O� LoansRecovery from written-o� loans in earlier as well as current year is recognized as income in the year such amount is actually recov-ered from the borrower.
e) Interest ReceivableInterest accrued on loans and investments are recognized on daily basis on the outstanding balances at the end of the day. Interest receivables on loans are stated at full value and are disclosed net of interest suspense under 'Accrued Interest on Loan' under 'Other Assets' in Schedule 16 of the Financial Statement.
f) Recovery of Loan and InterestLoan is recovered in the sequence of penal, interest and principal amount.
g) Sta� Loans and Advances The Bank has a policy to provide loans to its sta� under Employment Service Regulations at a subsidized interest rate. These loans are presented under 'Other Assets' in Schedule-16 as per NRB Directives.
5.9. Investments Investments are classi�ed as held for trading, held to maturity and available for sale in accordance with NRB Directives.
a. Held for Trading :Investments that are made for the purpose of generating pro�t from short term �uctuations in price are classi�ed under this category. These investments are marked to market on a daily basis and di�erence is re�ected in the pro�t and loss account.
b. Held to Maturity: The investments made with positive intent and ability of the Bank to hold till maturity is classi�ed as held to maturity investments. The held to maturity investments are valued at amortized cost i.e. the cost price less any impairments (if applicable). The impair-ments are included in the pro�t and loss account for the period.
c. Available for Sale: All other investments that are neither “held for trading” nor “held to maturity” are classi�ed under this category. These investments are marked to market on a regular basis and the di�erence is adjusted through reserves. 2% of investment classi�ed as 'Available for Sale' is appropriated to Investment Adjustment Reserve as required by NRB Directives. The reserve is considered as Tier 2 Capital.
In case of investments unquoted within stipulated time frame prescribed by NRB Directives, Investment Adjustment Reserve is maintained to the extent of 100% of such investments.
Treasury Bills being discounted instruments are disclosed at cost including the pro rata discount accreted for the holding period.
All Investments are subject to regular review as required by Nepal Rastra Bank Directives.
5.10. Property, Plant and Equipment & Depreciationa) Fixed AssetsFixed assets except land are stated at acquisition cost less accumulated depreciation. Acquisition cost includes expenditures that are directly attributable to the acquisition of the assets.
Sanima Bank
FINANCIAL REPORT 2014/1549
Significant Accounting Policies
1. General Information Sanima Bank Limited (“The Bank”) is a limited liability company domiciled in Nepal. The registered o�ce of the Bank is located at Alakapuri Building, Naxal, Kathmandu, Nepal.
The Bank has registered with the O�ce of the Company Registrar on 30th June 2004 (16th Ashadh 2061), obtained license from Nepal Rastra Bank on 26th November 2004 (11th Mangsir 2061) and came into operation from 6th December 2004 (21st Mangsir 2061) to conduct banking business in Nepal. The Bank is listed in Nepal Stock Exchange Limited. Furthermore, the Bank has obtained license to operate as ‘A’ class �nancial institution on 13th February 2012 (1st Falgun 2068) and started operation as ‘A’ class �nancial institution w.e.f. 15th February 2012 (3rd Falgun 2068) i.e. upgraded to ‘A’ class Financial Institution.
2. Approval of Financial Statements by Board of DirectorsThe accompanied �nancial statements have been adopted by the Board of Directors on its meeting held on 2nd September 2015 (16th Bhadra 2072) and recommended for its approval by the Annual General Meeting of the shareholders.
3. Basis of Preparation & Use of EstimateThe �nancial statements are prepared under historical cost convention following accrual basis of accounting except for interest income on loans and advance which is accounted for on cash basis. The preparation of �nancial statements in conformity with NAS and GAAP requires management to use certain critical accounting estimates. It also requires management to exercise judgment in process of developing and applying the Bank’s accounting policies. The Management believes that estimates and policies so applied are reasonable in the circumstances of the cases. All the formats of the �nancial statements are in accordance with the NRB Directives.
4. Statement of Compliance The �nancial statements has been prepared in accordance with Nepal Accounting Standards (“NAS”) issued by the Nepal Account-ing Standards Board except otherwise stated, Generally Accepted Accounting Principles (“GAAP”), Bank and Financial Institutions Act, 2063 (“BAFIA”) and other requirements of Directives, circulars and guidelines issued by NRB and in conformity with the Companies Act, 2063.
5. Signi�cant Accounting PolicesThe principal accounting policies applied by the Bank in the preparation of these �nancial statements are presented below. These polices have been consistently applied to all the years presented unless stated otherwise.
5.1. Interest Income Interest income on loans and advances is recognized on cash basis as per the Nepal Rastra Bank (NRB) Directives though this practice is not in accordance with NAS - 7 (Revenue) which prescribes the revenue to be recognized on accrual basis.
5.2. Commission Income Commission income is recognized on accrual basis over the period of contract. However, it is the practice of the Bank to recognize income on cash basis up to Rs. 50,000 for service period of more than one �nancial year which is not in accordance with NAS-7.
5.3. Dividend Income Dividend on equity shares is recognized as income when the right to receive the same is established. Cash dividends declared by resident companies are recorded at net of withholding tax.
5.4. Foreign Exchange Transactions Foreign currency transactions are recorded at the rate prevailing as on the date of transaction. Di�erence between buying and selling rates of foreign exchange, at the time of transaction, is accounted for as "Trading Gain/Loss" at the time of trading under
“Exchange Gain/ (Loss)” in Schedule - 22
Foreign currency assets and liabilities as on balance sheet date are translated into Nepalese Rupees at the mid exchange rate prevailing on the Balance Sheet date and any di�erence arising out of such transaction is recognized as “Revaluation Gain/ (Loss)”. This is presented under “Revaluation Gain/ (Loss)” in Schedule – 22. Twenty-�ve percent of revaluation gain is transferred to Exchange Fluctuation Fund through Pro�t and Loss Appropriation Account as required by Nepal Rastra Bank Directives.
5.5. Interest Expense Interest on deposit liabilities and borrowings is accounted for on accrual basis in functional currency.
5.6. Employment Bene�ts The Bank provides its employees with the following retirement bene�ts:
a. Provident fund:Provident fund contribution is recognized as expenses and deposited into the approved retirement fund (Employee Provident Fund O�ce).
b. Accumulated Leave :Accumulated leave payable to sta� is recognized on accrual basis as per the Employee Service Regulation of the Bank. c. Gratuity:Gratuity liability of sta� is accrued only after completion of a �xed period of full time employment with the Bank in accordance with the Employee Service Regulation. Leave and gratuity liability is not made as per actuarial valuation as required by NAS-14 Employee Bene�ts.
5.7. Taxationa) Current Income TaxProvision for income tax has been made on the basis of the Income Tax Act, 2058 and amendments thereto.
b) Deferred Income Tax Deferred taxes are accounted using the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary di�erences between the �nancial statement’s carrying amounts of existing assets and liabilities, and their respective tax bases. Deferred tax assets and liabilities are measured using tax rates expected to apply to taxable income in the years in which those temporary di�erences are expected to be recovered or settled based on the laws that have been enacted or subsequently enacted by the reporting date. Deferred tax assets arising from temporary di�erence and unused tax losses are recognized to the extent there is virtual certainty that su�cient future taxable income will be available against which such deferred tax assets can be realized (according to NAS-09 “Income Taxes”).
5.8. Loans and Advances including Bills Purchased a) Classi�cationLoans and advances, overdrafts and bills purchased include direct �nance 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 classi�ed as per NRB Directives. Loans and advances, overdrafts and bills purchased are shown net of mandatory provisions as required by NRB Directives.
b) Loan Loss Provision The provision for possible losses on loans, advances and bills purchased are provided at the rates between 1 percent and 100 percent, according to classi�cation of such risk assets as per Nepal Rastra Bank Directives.
5.17. Unearned IncomeUnearned income comprises of income received in advance on account of LC/Guarantee Fees issued with a risk period of more than 1 year period and for fees with more than Rs. 50,000 and income from forward contract.
They are recognized as liability at the time of its receipt and are derecognized as and when income accrues and/or risk period expires and disclosed in Schedule-7.
5.18. Provisions, Contingent Liabilities And Contingent Assets The Bank creates a provision when there is a present obligation of the entity arising from past events, the settlements of which is expected to result in an out�ow from the entity of resources embodying economic bene�ts and a reliable estimate can be made of the amount of the obligation.
A disclosure for contingent liability is made when there is a present obligation that may or may not, require an out�ow of resourc-es. When there is a possible obligation or present obligation in respect of which the likelihood of out�ow of resources is remote, no provision or disclosure is made in the �nancial statement. Contingent liabilities are shown in Schedule 17
Contingent assets are not recognized in the �nancial statements. However, contingent assets are assessed continually and if it is virtually certain that an economic bene�t will arise, the assets and related income are recognized in the period in which the change occurs.
5.19. Operating Lease Commitment The Bank has taken various properties on cancellable long term lease. Since the Bank possesses the right to terminate the said lease before its maturity by giving a notice of speci�ed period, the future liability the Bank is limited to lease payable for notice period only.
The expenses under operating leases are booked under 'Leasehold Assets' and written o� in 10 years or term of lease, whichever is less.
5.20. Rounding O� and Regrouping/Reclassi�cationThe Financial Statements are presented in Nepalese Rupees rounded to the nearest Rupee. Previous year amount has been regrouped/reclassi�ed, wherever necessary to facilitate comparison.
Assets with a value less than Rs. 10,000 are charged o� as a revenue expense irrespective of its useful life in the year of purchase.
Leasehold improvements are capitalized at cost and amortized over the lease period or ten years whichever is earlier. The amount of amortization is charged to revenue.
b) Computer Software Acquired computer software licenses are capitalized on the basis of cost incurred to acquire and bring to use the speci�c software and are amortized over their useful life estimated as 5 years from the date of acquisition or over the period of the license, whichev-er is less.
c) DepreciationLand is not depreciated. The depreciable amount of an item of property, plant and equipment is allocated on systematic basis over its useful life and is depreciated as follows:
Depreciation on assets acquired during the year is computed on a proportionate basis from date of purchase or put to use, which-ever is earlier.
Derecognition of assets: The gain or losses arising from derecognition of an item of property, plant and equipment is included in pro�t or loss when the item is derecognized.
5.11. Stationery StockStationery stock is valued at cost and expended as and when it is used for consumption on FIFO method.
5.12. Bullion Stock under consignmentThe Bank holds precious metals (gold and silver) in its possession arising from consignment transaction as a custodian. The risks and rewards (price risk) pertaining to the assets is vested with the consignor. Bank has purchased 140 KGs Silver which is shown under 'Other Assets'.
5.13. Non-Banking Assets (NBA) Non-Banking Assets is valued at lower of loan amount or fair market value of the assets acquired. Provisions for NBA are made in accordance with the Nepal Rastra Bank Directives.
5.14. Other AssetsOther assets are shown net of other liabilities when party is same and the Bank has legal right to set o�.
5.15. BorrowingsBorrowings comprise of local and foreign currencies' inter-bank borrowing. Borrowings are recorded at the full value and recog-nized on the e�ective dates mentioned in the contract.
5.16. DepositsDeposits include local and foreign currencies' current deposits, savings deposits, call deposits, �xed deposits, margin deposits and other deposits of the customers held by the Bank. Deposits are stated at full value and are derecognized at the time of its withdrawal.
c) Write O� Unrecoverable loans and advances are written o� in accordance with the write o� By-laws approved by the Board of Directors and NRB, without prejudice to Bank’s right to recover such loans and advances.
d) Recovery from Written-O� LoansRecovery from written-o� loans in earlier as well as current year is recognized as income in the year such amount is actually recov-ered from the borrower.
e) Interest ReceivableInterest accrued on loans and investments are recognized on daily basis on the outstanding balances at the end of the day. Interest receivables on loans are stated at full value and are disclosed net of interest suspense under 'Accrued Interest on Loan' under 'Other Assets' in Schedule 16 of the Financial Statement.
f) Recovery of Loan and InterestLoan is recovered in the sequence of penal, interest and principal amount.
g) Sta� Loans and Advances The Bank has a policy to provide loans to its sta� under Employment Service Regulations at a subsidized interest rate. These loans are presented under 'Other Assets' in Schedule-16 as per NRB Directives.
5.9. Investments Investments are classi�ed as held for trading, held to maturity and available for sale in accordance with NRB Directives.
a. Held for Trading :Investments that are made for the purpose of generating pro�t from short term �uctuations in price are classi�ed under this category. These investments are marked to market on a daily basis and di�erence is re�ected in the pro�t and loss account.
b. Held to Maturity: The investments made with positive intent and ability of the Bank to hold till maturity is classi�ed as held to maturity investments. The held to maturity investments are valued at amortized cost i.e. the cost price less any impairments (if applicable). The impair-ments are included in the pro�t and loss account for the period.
c. Available for Sale: All other investments that are neither “held for trading” nor “held to maturity” are classi�ed under this category. These investments are marked to market on a regular basis and the di�erence is adjusted through reserves. 2% of investment classi�ed as 'Available for Sale' is appropriated to Investment Adjustment Reserve as required by NRB Directives. The reserve is considered as Tier 2 Capital.
In case of investments unquoted within stipulated time frame prescribed by NRB Directives, Investment Adjustment Reserve is maintained to the extent of 100% of such investments.
Treasury Bills being discounted instruments are disclosed at cost including the pro rata discount accreted for the holding period.
All Investments are subject to regular review as required by Nepal Rastra Bank Directives.
5.10. Property, Plant and Equipment & Depreciationa) Fixed AssetsFixed assets except land are stated at acquisition cost less accumulated depreciation. Acquisition cost includes expenditures that are directly attributable to the acquisition of the assets.
Sanima Bank
FINANCIAL REPORT 2014/1550
Significant Accounting Policies
1. General Information Sanima Bank Limited (“The Bank”) is a limited liability company domiciled in Nepal. The registered o�ce of the Bank is located at Alakapuri Building, Naxal, Kathmandu, Nepal.
The Bank has registered with the O�ce of the Company Registrar on 30th June 2004 (16th Ashadh 2061), obtained license from Nepal Rastra Bank on 26th November 2004 (11th Mangsir 2061) and came into operation from 6th December 2004 (21st Mangsir 2061) to conduct banking business in Nepal. The Bank is listed in Nepal Stock Exchange Limited. Furthermore, the Bank has obtained license to operate as ‘A’ class �nancial institution on 13th February 2012 (1st Falgun 2068) and started operation as ‘A’ class �nancial institution w.e.f. 15th February 2012 (3rd Falgun 2068) i.e. upgraded to ‘A’ class Financial Institution.
2. Approval of Financial Statements by Board of DirectorsThe accompanied �nancial statements have been adopted by the Board of Directors on its meeting held on 2nd September 2015 (16th Bhadra 2072) and recommended for its approval by the Annual General Meeting of the shareholders.
3. Basis of Preparation & Use of EstimateThe �nancial statements are prepared under historical cost convention following accrual basis of accounting except for interest income on loans and advance which is accounted for on cash basis. The preparation of �nancial statements in conformity with NAS and GAAP requires management to use certain critical accounting estimates. It also requires management to exercise judgment in process of developing and applying the Bank’s accounting policies. The Management believes that estimates and policies so applied are reasonable in the circumstances of the cases. All the formats of the �nancial statements are in accordance with the NRB Directives.
4. Statement of Compliance The �nancial statements has been prepared in accordance with Nepal Accounting Standards (“NAS”) issued by the Nepal Account-ing Standards Board except otherwise stated, Generally Accepted Accounting Principles (“GAAP”), Bank and Financial Institutions Act, 2063 (“BAFIA”) and other requirements of Directives, circulars and guidelines issued by NRB and in conformity with the Companies Act, 2063.
5. Signi�cant Accounting PolicesThe principal accounting policies applied by the Bank in the preparation of these �nancial statements are presented below. These polices have been consistently applied to all the years presented unless stated otherwise.
5.1. Interest Income Interest income on loans and advances is recognized on cash basis as per the Nepal Rastra Bank (NRB) Directives though this practice is not in accordance with NAS - 7 (Revenue) which prescribes the revenue to be recognized on accrual basis.
5.2. Commission Income Commission income is recognized on accrual basis over the period of contract. However, it is the practice of the Bank to recognize income on cash basis up to Rs. 50,000 for service period of more than one �nancial year which is not in accordance with NAS-7.
5.3. Dividend Income Dividend on equity shares is recognized as income when the right to receive the same is established. Cash dividends declared by resident companies are recorded at net of withholding tax.
5.4. Foreign Exchange Transactions Foreign currency transactions are recorded at the rate prevailing as on the date of transaction. Di�erence between buying and selling rates of foreign exchange, at the time of transaction, is accounted for as "Trading Gain/Loss" at the time of trading under
“Exchange Gain/ (Loss)” in Schedule - 22
Foreign currency assets and liabilities as on balance sheet date are translated into Nepalese Rupees at the mid exchange rate prevailing on the Balance Sheet date and any di�erence arising out of such transaction is recognized as “Revaluation Gain/ (Loss)”. This is presented under “Revaluation Gain/ (Loss)” in Schedule – 22. Twenty-�ve percent of revaluation gain is transferred to Exchange Fluctuation Fund through Pro�t and Loss Appropriation Account as required by Nepal Rastra Bank Directives.
5.5. Interest Expense Interest on deposit liabilities and borrowings is accounted for on accrual basis in functional currency.
5.6. Employment Bene�ts The Bank provides its employees with the following retirement bene�ts:
a. Provident fund:Provident fund contribution is recognized as expenses and deposited into the approved retirement fund (Employee Provident Fund O�ce).
b. Accumulated Leave :Accumulated leave payable to sta� is recognized on accrual basis as per the Employee Service Regulation of the Bank. c. Gratuity:Gratuity liability of sta� is accrued only after completion of a �xed period of full time employment with the Bank in accordance with the Employee Service Regulation. Leave and gratuity liability is not made as per actuarial valuation as required by NAS-14 Employee Bene�ts.
5.7. Taxationa) Current Income TaxProvision for income tax has been made on the basis of the Income Tax Act, 2058 and amendments thereto.
b) Deferred Income Tax Deferred taxes are accounted using the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary di�erences between the �nancial statement’s carrying amounts of existing assets and liabilities, and their respective tax bases. Deferred tax assets and liabilities are measured using tax rates expected to apply to taxable income in the years in which those temporary di�erences are expected to be recovered or settled based on the laws that have been enacted or subsequently enacted by the reporting date. Deferred tax assets arising from temporary di�erence and unused tax losses are recognized to the extent there is virtual certainty that su�cient future taxable income will be available against which such deferred tax assets can be realized (according to NAS-09 “Income Taxes”).
5.8. Loans and Advances including Bills Purchased a) Classi�cationLoans and advances, overdrafts and bills purchased include direct �nance 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 classi�ed as per NRB Directives. Loans and advances, overdrafts and bills purchased are shown net of mandatory provisions as required by NRB Directives.
b) Loan Loss Provision The provision for possible losses on loans, advances and bills purchased are provided at the rates between 1 percent and 100 percent, according to classi�cation of such risk assets as per Nepal Rastra Bank Directives.
5.17. Unearned IncomeUnearned income comprises of income received in advance on account of LC/Guarantee Fees issued with a risk period of more than 1 year period and for fees with more than Rs. 50,000 and income from forward contract.
They are recognized as liability at the time of its receipt and are derecognized as and when income accrues and/or risk period expires and disclosed in Schedule-7.
5.18. Provisions, Contingent Liabilities And Contingent Assets The Bank creates a provision when there is a present obligation of the entity arising from past events, the settlements of which is expected to result in an out�ow from the entity of resources embodying economic bene�ts and a reliable estimate can be made of the amount of the obligation.
A disclosure for contingent liability is made when there is a present obligation that may or may not, require an out�ow of resourc-es. When there is a possible obligation or present obligation in respect of which the likelihood of out�ow of resources is remote, no provision or disclosure is made in the �nancial statement. Contingent liabilities are shown in Schedule 17
Contingent assets are not recognized in the �nancial statements. However, contingent assets are assessed continually and if it is virtually certain that an economic bene�t will arise, the assets and related income are recognized in the period in which the change occurs.
5.19. Operating Lease Commitment The Bank has taken various properties on cancellable long term lease. Since the Bank possesses the right to terminate the said lease before its maturity by giving a notice of speci�ed period, the future liability the Bank is limited to lease payable for notice period only.
The expenses under operating leases are booked under 'Leasehold Assets' and written o� in 10 years or term of lease, whichever is less.
5.20. Rounding O� and Regrouping/Reclassi�cationThe Financial Statements are presented in Nepalese Rupees rounded to the nearest Rupee. Previous year amount has been regrouped/reclassi�ed, wherever necessary to facilitate comparison.
Assets with a value less than Rs. 10,000 are charged o� as a revenue expense irrespective of its useful life in the year of purchase.
Leasehold improvements are capitalized at cost and amortized over the lease period or ten years whichever is earlier. The amount of amortization is charged to revenue.
b) Computer Software Acquired computer software licenses are capitalized on the basis of cost incurred to acquire and bring to use the speci�c software and are amortized over their useful life estimated as 5 years from the date of acquisition or over the period of the license, whichev-er is less.
c) DepreciationLand is not depreciated. The depreciable amount of an item of property, plant and equipment is allocated on systematic basis over its useful life and is depreciated as follows:
Depreciation on assets acquired during the year is computed on a proportionate basis from date of purchase or put to use, which-ever is earlier.
Derecognition of assets: The gain or losses arising from derecognition of an item of property, plant and equipment is included in pro�t or loss when the item is derecognized.
5.11. Stationery StockStationery stock is valued at cost and expended as and when it is used for consumption on FIFO method.
5.12. Bullion Stock under consignmentThe Bank holds precious metals (gold and silver) in its possession arising from consignment transaction as a custodian. The risks and rewards (price risk) pertaining to the assets is vested with the consignor. Bank has purchased 140 KGs Silver which is shown under 'Other Assets'.
5.13. Non-Banking Assets (NBA) Non-Banking Assets is valued at lower of loan amount or fair market value of the assets acquired. Provisions for NBA are made in accordance with the Nepal Rastra Bank Directives.
5.14. Other AssetsOther assets are shown net of other liabilities when party is same and the Bank has legal right to set o�.
5.15. BorrowingsBorrowings comprise of local and foreign currencies' inter-bank borrowing. Borrowings are recorded at the full value and recog-nized on the e�ective dates mentioned in the contract.
5.16. DepositsDeposits include local and foreign currencies' current deposits, savings deposits, call deposits, �xed deposits, margin deposits and other deposits of the customers held by the Bank. Deposits are stated at full value and are derecognized at the time of its withdrawal.
c) Write O� Unrecoverable loans and advances are written o� in accordance with the write o� By-laws approved by the Board of Directors and NRB, without prejudice to Bank’s right to recover such loans and advances.
d) Recovery from Written-O� LoansRecovery from written-o� loans in earlier as well as current year is recognized as income in the year such amount is actually recov-ered from the borrower.
e) Interest ReceivableInterest accrued on loans and investments are recognized on daily basis on the outstanding balances at the end of the day. Interest receivables on loans are stated at full value and are disclosed net of interest suspense under 'Accrued Interest on Loan' under 'Other Assets' in Schedule 16 of the Financial Statement.
f) Recovery of Loan and InterestLoan is recovered in the sequence of penal, interest and principal amount.
g) Sta� Loans and Advances The Bank has a policy to provide loans to its sta� under Employment Service Regulations at a subsidized interest rate. These loans are presented under 'Other Assets' in Schedule-16 as per NRB Directives.
5.9. Investments Investments are classi�ed as held for trading, held to maturity and available for sale in accordance with NRB Directives.
a. Held for Trading :Investments that are made for the purpose of generating pro�t from short term �uctuations in price are classi�ed under this category. These investments are marked to market on a daily basis and di�erence is re�ected in the pro�t and loss account.
b. Held to Maturity: The investments made with positive intent and ability of the Bank to hold till maturity is classi�ed as held to maturity investments. The held to maturity investments are valued at amortized cost i.e. the cost price less any impairments (if applicable). The impair-ments are included in the pro�t and loss account for the period.
c. Available for Sale: All other investments that are neither “held for trading” nor “held to maturity” are classi�ed under this category. These investments are marked to market on a regular basis and the di�erence is adjusted through reserves. 2% of investment classi�ed as 'Available for Sale' is appropriated to Investment Adjustment Reserve as required by NRB Directives. The reserve is considered as Tier 2 Capital.
In case of investments unquoted within stipulated time frame prescribed by NRB Directives, Investment Adjustment Reserve is maintained to the extent of 100% of such investments.
Treasury Bills being discounted instruments are disclosed at cost including the pro rata discount accreted for the holding period.
All Investments are subject to regular review as required by Nepal Rastra Bank Directives.
5.10. Property, Plant and Equipment & Depreciationa) Fixed AssetsFixed assets except land are stated at acquisition cost less accumulated depreciation. Acquisition cost includes expenditures that are directly attributable to the acquisition of the assets.
Sanima Bank
FINANCIAL REPORT 2014/1551
Significant Accounting Policies
1. General Information Sanima Bank Limited (“The Bank”) is a limited liability company domiciled in Nepal. The registered o�ce of the Bank is located at Alakapuri Building, Naxal, Kathmandu, Nepal.
The Bank has registered with the O�ce of the Company Registrar on 30th June 2004 (16th Ashadh 2061), obtained license from Nepal Rastra Bank on 26th November 2004 (11th Mangsir 2061) and came into operation from 6th December 2004 (21st Mangsir 2061) to conduct banking business in Nepal. The Bank is listed in Nepal Stock Exchange Limited. Furthermore, the Bank has obtained license to operate as ‘A’ class �nancial institution on 13th February 2012 (1st Falgun 2068) and started operation as ‘A’ class �nancial institution w.e.f. 15th February 2012 (3rd Falgun 2068) i.e. upgraded to ‘A’ class Financial Institution.
2. Approval of Financial Statements by Board of DirectorsThe accompanied �nancial statements have been adopted by the Board of Directors on its meeting held on 2nd September 2015 (16th Bhadra 2072) and recommended for its approval by the Annual General Meeting of the shareholders.
3. Basis of Preparation & Use of EstimateThe �nancial statements are prepared under historical cost convention following accrual basis of accounting except for interest income on loans and advance which is accounted for on cash basis. The preparation of �nancial statements in conformity with NAS and GAAP requires management to use certain critical accounting estimates. It also requires management to exercise judgment in process of developing and applying the Bank’s accounting policies. The Management believes that estimates and policies so applied are reasonable in the circumstances of the cases. All the formats of the �nancial statements are in accordance with the NRB Directives.
4. Statement of Compliance The �nancial statements has been prepared in accordance with Nepal Accounting Standards (“NAS”) issued by the Nepal Account-ing Standards Board except otherwise stated, Generally Accepted Accounting Principles (“GAAP”), Bank and Financial Institutions Act, 2063 (“BAFIA”) and other requirements of Directives, circulars and guidelines issued by NRB and in conformity with the Companies Act, 2063.
5. Signi�cant Accounting PolicesThe principal accounting policies applied by the Bank in the preparation of these �nancial statements are presented below. These polices have been consistently applied to all the years presented unless stated otherwise.
5.1. Interest Income Interest income on loans and advances is recognized on cash basis as per the Nepal Rastra Bank (NRB) Directives though this practice is not in accordance with NAS - 7 (Revenue) which prescribes the revenue to be recognized on accrual basis.
5.2. Commission Income Commission income is recognized on accrual basis over the period of contract. However, it is the practice of the Bank to recognize income on cash basis up to Rs. 50,000 for service period of more than one �nancial year which is not in accordance with NAS-7.
5.3. Dividend Income Dividend on equity shares is recognized as income when the right to receive the same is established. Cash dividends declared by resident companies are recorded at net of withholding tax.
5.4. Foreign Exchange Transactions Foreign currency transactions are recorded at the rate prevailing as on the date of transaction. Di�erence between buying and selling rates of foreign exchange, at the time of transaction, is accounted for as "Trading Gain/Loss" at the time of trading under
“Exchange Gain/ (Loss)” in Schedule - 22
Foreign currency assets and liabilities as on balance sheet date are translated into Nepalese Rupees at the mid exchange rate prevailing on the Balance Sheet date and any di�erence arising out of such transaction is recognized as “Revaluation Gain/ (Loss)”. This is presented under “Revaluation Gain/ (Loss)” in Schedule – 22. Twenty-�ve percent of revaluation gain is transferred to Exchange Fluctuation Fund through Pro�t and Loss Appropriation Account as required by Nepal Rastra Bank Directives.
5.5. Interest Expense Interest on deposit liabilities and borrowings is accounted for on accrual basis in functional currency.
5.6. Employment Bene�ts The Bank provides its employees with the following retirement bene�ts:
a. Provident fund:Provident fund contribution is recognized as expenses and deposited into the approved retirement fund (Employee Provident Fund O�ce).
b. Accumulated Leave :Accumulated leave payable to sta� is recognized on accrual basis as per the Employee Service Regulation of the Bank. c. Gratuity:Gratuity liability of sta� is accrued only after completion of a �xed period of full time employment with the Bank in accordance with the Employee Service Regulation. Leave and gratuity liability is not made as per actuarial valuation as required by NAS-14 Employee Bene�ts.
5.7. Taxationa) Current Income TaxProvision for income tax has been made on the basis of the Income Tax Act, 2058 and amendments thereto.
b) Deferred Income Tax Deferred taxes are accounted using the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary di�erences between the �nancial statement’s carrying amounts of existing assets and liabilities, and their respective tax bases. Deferred tax assets and liabilities are measured using tax rates expected to apply to taxable income in the years in which those temporary di�erences are expected to be recovered or settled based on the laws that have been enacted or subsequently enacted by the reporting date. Deferred tax assets arising from temporary di�erence and unused tax losses are recognized to the extent there is virtual certainty that su�cient future taxable income will be available against which such deferred tax assets can be realized (according to NAS-09 “Income Taxes”).
5.8. Loans and Advances including Bills Purchased a) Classi�cationLoans and advances, overdrafts and bills purchased include direct �nance 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 classi�ed as per NRB Directives. Loans and advances, overdrafts and bills purchased are shown net of mandatory provisions as required by NRB Directives.
b) Loan Loss Provision The provision for possible losses on loans, advances and bills purchased are provided at the rates between 1 percent and 100 percent, according to classi�cation of such risk assets as per Nepal Rastra Bank Directives.
5.17. Unearned IncomeUnearned income comprises of income received in advance on account of LC/Guarantee Fees issued with a risk period of more than 1 year period and for fees with more than Rs. 50,000 and income from forward contract.
They are recognized as liability at the time of its receipt and are derecognized as and when income accrues and/or risk period expires and disclosed in Schedule-7.
5.18. Provisions, Contingent Liabilities And Contingent Assets The Bank creates a provision when there is a present obligation of the entity arising from past events, the settlements of which is expected to result in an out�ow from the entity of resources embodying economic bene�ts and a reliable estimate can be made of the amount of the obligation.
A disclosure for contingent liability is made when there is a present obligation that may or may not, require an out�ow of resourc-es. When there is a possible obligation or present obligation in respect of which the likelihood of out�ow of resources is remote, no provision or disclosure is made in the �nancial statement. Contingent liabilities are shown in Schedule 17
Contingent assets are not recognized in the �nancial statements. However, contingent assets are assessed continually and if it is virtually certain that an economic bene�t will arise, the assets and related income are recognized in the period in which the change occurs.
5.19. Operating Lease Commitment The Bank has taken various properties on cancellable long term lease. Since the Bank possesses the right to terminate the said lease before its maturity by giving a notice of speci�ed period, the future liability the Bank is limited to lease payable for notice period only.
The expenses under operating leases are booked under 'Leasehold Assets' and written o� in 10 years or term of lease, whichever is less.
5.20. Rounding O� and Regrouping/Reclassi�cationThe Financial Statements are presented in Nepalese Rupees rounded to the nearest Rupee. Previous year amount has been regrouped/reclassi�ed, wherever necessary to facilitate comparison.
Nature of Asset Useful Life (in Years) Depreciation Rate Building 50 5 Furniture 10 25 Office Equipments 10 25 Vehicles 7 20 Computers 7 25 Plant and Machinery 10 15 Leasehold Assets 10 Years or Lease period whichever is less
Assets with a value less than Rs. 10,000 are charged o� as a revenue expense irrespective of its useful life in the year of purchase.
Leasehold improvements are capitalized at cost and amortized over the lease period or ten years whichever is earlier. The amount of amortization is charged to revenue.
b) Computer Software Acquired computer software licenses are capitalized on the basis of cost incurred to acquire and bring to use the speci�c software and are amortized over their useful life estimated as 5 years from the date of acquisition or over the period of the license, whichev-er is less.
c) DepreciationLand is not depreciated. The depreciable amount of an item of property, plant and equipment is allocated on systematic basis over its useful life and is depreciated as follows:
Depreciation on assets acquired during the year is computed on a proportionate basis from date of purchase or put to use, which-ever is earlier.
Derecognition of assets: The gain or losses arising from derecognition of an item of property, plant and equipment is included in pro�t or loss when the item is derecognized.
5.11. Stationery StockStationery stock is valued at cost and expended as and when it is used for consumption on FIFO method.
5.12. Bullion Stock under consignmentThe Bank holds precious metals (gold and silver) in its possession arising from consignment transaction as a custodian. The risks and rewards (price risk) pertaining to the assets is vested with the consignor. Bank has purchased 140 KGs Silver which is shown under 'Other Assets'.
5.13. Non-Banking Assets (NBA) Non-Banking Assets is valued at lower of loan amount or fair market value of the assets acquired. Provisions for NBA are made in accordance with the Nepal Rastra Bank Directives.
5.14. Other AssetsOther assets are shown net of other liabilities when party is same and the Bank has legal right to set o�.
5.15. BorrowingsBorrowings comprise of local and foreign currencies' inter-bank borrowing. Borrowings are recorded at the full value and recog-nized on the e�ective dates mentioned in the contract.
5.16. DepositsDeposits include local and foreign currencies' current deposits, savings deposits, call deposits, �xed deposits, margin deposits and other deposits of the customers held by the Bank. Deposits are stated at full value and are derecognized at the time of its withdrawal.
c) Write O� Unrecoverable loans and advances are written o� in accordance with the write o� By-laws approved by the Board of Directors and NRB, without prejudice to Bank’s right to recover such loans and advances.
d) Recovery from Written-O� LoansRecovery from written-o� loans in earlier as well as current year is recognized as income in the year such amount is actually recov-ered from the borrower.
e) Interest ReceivableInterest accrued on loans and investments are recognized on daily basis on the outstanding balances at the end of the day. Interest receivables on loans are stated at full value and are disclosed net of interest suspense under 'Accrued Interest on Loan' under 'Other Assets' in Schedule 16 of the Financial Statement.
f) Recovery of Loan and InterestLoan is recovered in the sequence of penal, interest and principal amount.
g) Sta� Loans and Advances The Bank has a policy to provide loans to its sta� under Employment Service Regulations at a subsidized interest rate. These loans are presented under 'Other Assets' in Schedule-16 as per NRB Directives.
5.9. Investments Investments are classi�ed as held for trading, held to maturity and available for sale in accordance with NRB Directives.
a. Held for Trading :Investments that are made for the purpose of generating pro�t from short term �uctuations in price are classi�ed under this category. These investments are marked to market on a daily basis and di�erence is re�ected in the pro�t and loss account.
b. Held to Maturity: The investments made with positive intent and ability of the Bank to hold till maturity is classi�ed as held to maturity investments. The held to maturity investments are valued at amortized cost i.e. the cost price less any impairments (if applicable). The impair-ments are included in the pro�t and loss account for the period.
c. Available for Sale: All other investments that are neither “held for trading” nor “held to maturity” are classi�ed under this category. These investments are marked to market on a regular basis and the di�erence is adjusted through reserves. 2% of investment classi�ed as 'Available for Sale' is appropriated to Investment Adjustment Reserve as required by NRB Directives. The reserve is considered as Tier 2 Capital.
In case of investments unquoted within stipulated time frame prescribed by NRB Directives, Investment Adjustment Reserve is maintained to the extent of 100% of such investments.
Treasury Bills being discounted instruments are disclosed at cost including the pro rata discount accreted for the holding period.
All Investments are subject to regular review as required by Nepal Rastra Bank Directives.
5.10. Property, Plant and Equipment & Depreciationa) Fixed AssetsFixed assets except land are stated at acquisition cost less accumulated depreciation. Acquisition cost includes expenditures that are directly attributable to the acquisition of the assets.
Sanima Bank
FINANCIAL REPORT 2014/1552
Significant Accounting Policies
1. General Information Sanima Bank Limited (“The Bank”) is a limited liability company domiciled in Nepal. The registered o�ce of the Bank is located at Alakapuri Building, Naxal, Kathmandu, Nepal.
The Bank has registered with the O�ce of the Company Registrar on 30th June 2004 (16th Ashadh 2061), obtained license from Nepal Rastra Bank on 26th November 2004 (11th Mangsir 2061) and came into operation from 6th December 2004 (21st Mangsir 2061) to conduct banking business in Nepal. The Bank is listed in Nepal Stock Exchange Limited. Furthermore, the Bank has obtained license to operate as ‘A’ class �nancial institution on 13th February 2012 (1st Falgun 2068) and started operation as ‘A’ class �nancial institution w.e.f. 15th February 2012 (3rd Falgun 2068) i.e. upgraded to ‘A’ class Financial Institution.
2. Approval of Financial Statements by Board of DirectorsThe accompanied �nancial statements have been adopted by the Board of Directors on its meeting held on 2nd September 2015 (16th Bhadra 2072) and recommended for its approval by the Annual General Meeting of the shareholders.
3. Basis of Preparation & Use of EstimateThe �nancial statements are prepared under historical cost convention following accrual basis of accounting except for interest income on loans and advance which is accounted for on cash basis. The preparation of �nancial statements in conformity with NAS and GAAP requires management to use certain critical accounting estimates. It also requires management to exercise judgment in process of developing and applying the Bank’s accounting policies. The Management believes that estimates and policies so applied are reasonable in the circumstances of the cases. All the formats of the �nancial statements are in accordance with the NRB Directives.
4. Statement of Compliance The �nancial statements has been prepared in accordance with Nepal Accounting Standards (“NAS”) issued by the Nepal Account-ing Standards Board except otherwise stated, Generally Accepted Accounting Principles (“GAAP”), Bank and Financial Institutions Act, 2063 (“BAFIA”) and other requirements of Directives, circulars and guidelines issued by NRB and in conformity with the Companies Act, 2063.
5. Signi�cant Accounting PolicesThe principal accounting policies applied by the Bank in the preparation of these �nancial statements are presented below. These polices have been consistently applied to all the years presented unless stated otherwise.
5.1. Interest Income Interest income on loans and advances is recognized on cash basis as per the Nepal Rastra Bank (NRB) Directives though this practice is not in accordance with NAS - 7 (Revenue) which prescribes the revenue to be recognized on accrual basis.
5.2. Commission Income Commission income is recognized on accrual basis over the period of contract. However, it is the practice of the Bank to recognize income on cash basis up to Rs. 50,000 for service period of more than one �nancial year which is not in accordance with NAS-7.
5.3. Dividend Income Dividend on equity shares is recognized as income when the right to receive the same is established. Cash dividends declared by resident companies are recorded at net of withholding tax.
5.4. Foreign Exchange Transactions Foreign currency transactions are recorded at the rate prevailing as on the date of transaction. Di�erence between buying and selling rates of foreign exchange, at the time of transaction, is accounted for as "Trading Gain/Loss" at the time of trading under
“Exchange Gain/ (Loss)” in Schedule - 22
Foreign currency assets and liabilities as on balance sheet date are translated into Nepalese Rupees at the mid exchange rate prevailing on the Balance Sheet date and any di�erence arising out of such transaction is recognized as “Revaluation Gain/ (Loss)”. This is presented under “Revaluation Gain/ (Loss)” in Schedule – 22. Twenty-�ve percent of revaluation gain is transferred to Exchange Fluctuation Fund through Pro�t and Loss Appropriation Account as required by Nepal Rastra Bank Directives.
5.5. Interest Expense Interest on deposit liabilities and borrowings is accounted for on accrual basis in functional currency.
5.6. Employment Bene�ts The Bank provides its employees with the following retirement bene�ts:
a. Provident fund:Provident fund contribution is recognized as expenses and deposited into the approved retirement fund (Employee Provident Fund O�ce).
b. Accumulated Leave :Accumulated leave payable to sta� is recognized on accrual basis as per the Employee Service Regulation of the Bank. c. Gratuity:Gratuity liability of sta� is accrued only after completion of a �xed period of full time employment with the Bank in accordance with the Employee Service Regulation. Leave and gratuity liability is not made as per actuarial valuation as required by NAS-14 Employee Bene�ts.
5.7. Taxationa) Current Income TaxProvision for income tax has been made on the basis of the Income Tax Act, 2058 and amendments thereto.
b) Deferred Income Tax Deferred taxes are accounted using the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary di�erences between the �nancial statement’s carrying amounts of existing assets and liabilities, and their respective tax bases. Deferred tax assets and liabilities are measured using tax rates expected to apply to taxable income in the years in which those temporary di�erences are expected to be recovered or settled based on the laws that have been enacted or subsequently enacted by the reporting date. Deferred tax assets arising from temporary di�erence and unused tax losses are recognized to the extent there is virtual certainty that su�cient future taxable income will be available against which such deferred tax assets can be realized (according to NAS-09 “Income Taxes”).
5.8. Loans and Advances including Bills Purchased a) Classi�cationLoans and advances, overdrafts and bills purchased include direct �nance 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 classi�ed as per NRB Directives. Loans and advances, overdrafts and bills purchased are shown net of mandatory provisions as required by NRB Directives.
b) Loan Loss Provision The provision for possible losses on loans, advances and bills purchased are provided at the rates between 1 percent and 100 percent, according to classi�cation of such risk assets as per Nepal Rastra Bank Directives.
5.17. Unearned IncomeUnearned income comprises of income received in advance on account of LC/Guarantee Fees issued with a risk period of more than 1 year period and for fees with more than Rs. 50,000 and income from forward contract.
They are recognized as liability at the time of its receipt and are derecognized as and when income accrues and/or risk period expires and disclosed in Schedule-7.
5.18. Provisions, Contingent Liabilities And Contingent Assets The Bank creates a provision when there is a present obligation of the entity arising from past events, the settlements of which is expected to result in an out�ow from the entity of resources embodying economic bene�ts and a reliable estimate can be made of the amount of the obligation.
A disclosure for contingent liability is made when there is a present obligation that may or may not, require an out�ow of resourc-es. When there is a possible obligation or present obligation in respect of which the likelihood of out�ow of resources is remote, no provision or disclosure is made in the �nancial statement. Contingent liabilities are shown in Schedule 17
Contingent assets are not recognized in the �nancial statements. However, contingent assets are assessed continually and if it is virtually certain that an economic bene�t will arise, the assets and related income are recognized in the period in which the change occurs.
5.19. Operating Lease Commitment The Bank has taken various properties on cancellable long term lease. Since the Bank possesses the right to terminate the said lease before its maturity by giving a notice of speci�ed period, the future liability the Bank is limited to lease payable for notice period only.
The expenses under operating leases are booked under 'Leasehold Assets' and written o� in 10 years or term of lease, whichever is less.
5.20. Rounding O� and Regrouping/Reclassi�cationThe Financial Statements are presented in Nepalese Rupees rounded to the nearest Rupee. Previous year amount has been regrouped/reclassi�ed, wherever necessary to facilitate comparison.
Schedule 331. Equity1.1. Paid-up equity capitalPaid up share capital of the Bank has increased from year to year as follows:
Nepal Rastra Bank (NRB) has directed the commercial banks to raise their paid-up capital to Rs 8 billion by mid-July 2017. Accord-ingly, the Bank is planning to raise paid-up capital through issue of Bonus and Right shares.
1.2. General Reserve Section 44 of Bank and Financial Institutions Act 2006 requires the Bank to allocate at least 20% of the net pro�ts of every year to General Reserve until it is twice the paid-up capital. The Bank has appropriated Rs. 124,828,260 of the net pro�ts to General Reserve in the current year.
1.3. Deferred Tax ReserveNRB Directive no. 4 requires licensed institutions to maintain Deferred Tax Reserve equivalent to the amount of Deferred Tax Asset. The Bank maintains equivalent reserve to the amount of deferred tax asset in compliance with regulatory requirements.The movement of deferred tax asset/ (liability) is presented in the table below:
1.4. Investment Adjustment Reserve (IAR)The Bank has maintained adequate reserve in compliance with NRB Directives 04/2071 and 08/2071 for investments categorized as 'Available for Sale' except for the Investment made in the shares of Sanima Mai Hydropower Ltd which is valued at cost against the requirement of the shares to be measured at Mark to Market Basis in accordance with NRB directives. The movement of IAR for the year is presented below:
Sanima Bank
FINANCIAL REPORT 2014/1553
Notes to Accounts
In Rs.
In Rs.
Financial Year
Paid up Share Capital (Rs.)
Remarks
2061/62 224,000,000 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 Issue of 1:1 right and 5% bonus shares after issue of right. 2066/67 806,400,000 Public sale of 12,342 no. of unsubscribed right shares. 2067/68 2,016,000,000 Issue of 1:1.5 right shares. 2068/69 2,016,000,000 --- 2069/70 2,217,600,000 10% Bonus shares included 2070/71 2,550,240,000 15% Bonus shares included 2071/72 3,060,288,000 20% Proposed Bonus shares included
Particulars Current Year Previous Year Opening Balance - Deferred tax assets/(liability) (2,421,146) 851,802 Deferred tax assets/(liability) on temporary differences (2,230,513) (3,272,948) Closing Balance Deferred tax Assets/(Liability) (4,651,656) (2,421,146)
Particulars Net Investment
Required Reserve
Movement
Opening Balance 555,000 Shares of Local Organized Institution Listed Securities @2% 10,000,000 200,000 - Unlisted Securities @100% 355,000 355,000 - Exempted Securities 2,302,600 - Closing Balance 555,000
Sanima Bank
FINANCIAL REPORT 2014/1554
The Bank has invested Rs 10,000,000 in promoter shares of Sanima Mai Hydro Power which is valued at cost as the lock in period has not elapsed yet. Had the shares been accounted based on NRB Directives 4 & 8 on Mark to Market basis the investment would be valued at Rs 70,000,000 and accordingly Reserve of Rs 60,000,000 would have been created and Investment Adjustment Reserve would have increased by Rs 1,200,000 (2% of increased investment).
1.5. Exchange Fluctuation Fund (EFF)Section 45 of BAFIA, requires at least 25% of revaluation gains of such pro�ts (except gain from revaluation of Indian Currency) to be credited to the Exchange Fluctuation Fund. The Bank incurred losses on revaluation of foreign exchanges during the year. The movement in EFF is presented hereunder:
2. Proposed Bonus Share and Cash DividendThe Board of Directors has proposed Bonus shares at the rate of 20% and Cash dividend at the rate of 1.05% subject to approval of NRB and Annual General Meeting. Bonus shares have been proposed from current year's pro�t, last year's accumulated pro�t and fully utilizing the Share premium amount.
3. Unpaid Dividend As on balance sheet date total dividend payable amounts to Rs. 7,145,535 (PY Rs. 8,482,634) of which no amount is unpaid over �ve years. Details have been presented as under:
4. Reconciliation Status The Bank reconciles Inter Branch Transactions on daily basis. There are no un-reconciled transactions under Inter-Branch Transac-tions on balance sheet date.
Similarly, reconciliation of the local and foreign bank and �nancial institution accounts is conducted weekly/fortnightly/monthly. The di�erences identi�ed are reviewed and reconciled and same is in the process of being reconciled. Rs’ Million
5. Loans and Advances5.1. Sectoral Classi�cationNRB has speci�ed the maximum ceiling of lending to total real estate sector at 25% of gross loans and advances. The Banks' expo-sure to Real Estate sector grew by 110%. As at Balance sheet date, the real estate exposure of the Bank was 6.93%.
Rs’ Million
Particulars Amount (Rs.) Opening Balance 3,198,743 Reserve @25% of revaluation amount specified in Schedule 22 - Closing Balance 3,198,743
Dividend Payable of FY Current Year (Rs.) Previous Year (Rs.) 2070/2071 - - 2069/2070 - - 2068/2069 2,982,748 3,720,439 2067/2068 2,269,155 2,748,971 2066/2067 1,893,632 2,013,223
Total 7,145,535 8,482,634
Reconciliation Status Total Amount
<3 months >3<9 months
>9<12 months
>12 months
Branch Reconciliation - - - - - Agency Accounts 3,023.02 3,018.76 1.71 0.52 2.02
Sanima Bank
FINANCIAL REPORT 2014/1555
Rs’ 0005.2. Movement of Loans
The Bank's year-on-year Net Loans and Advances escalated by Rs. 7,892,607 thousands (39%), increasing the net balance to Rs. 28,264,051 thousands. The major volume growth was achieved under Individual Residential Home Loan (91%), Real estate loan (110%), term loans (30%) and other products (42%). 5.3. Summary of Loans and Advances Disbursed, Recovered and Principal and Interest Written-O�:
5.4. Concentration of Loans & Advances (Funded & Non Funded Facilities)Funded and non-funded facilities and sector wise loans are within the limits prescribed by NRB Directives. The details are present-ed below:
S. No Particulars
Current Year
Previous Year
Change in Volume
Changes (%)
1 Term Loan 4,445,878 3,420,567 1,025,311 30 2 Overdraft 3,493,900 2,526,053 967,847 38 3 Trust Receipt/Import Bills 1,024,509 570,835 453,674 79 4 Demand Loan/Working Capital Loan 5,579,799 4,788,747 791,052 17
5 Individual Residential Home Loan (Upto Rs 100 Lakhs) 2,192,791 1,147,464 1,045,327 91
6 Real Estate Loan 1,958,358 931,294 1,027,064 110 7 Margin Lending Loan 381,614 459,056 (77,442) (17) 8 Hire Purchase Loan 2,362,102 1,621,150 740,952 46 9 Deprived Sector Lending 1,189,500 809,933 379,567 47
10 Bills Purchase 136,462 223,414 (86,952) (39) 11 Others Products 5,499,139 3,872,931 1,626,208 42
Net Loans and Advances 28,264,051 20,371,444 7,892,607 39
Particulars Amount ('000) Opening Balance 20,620,401 Loans Disbursed 36,531,009 Loans Recovered 28,562,679 Principal Written off 609 Interest Written off 160 Closing Outstanding (Gross) 28,588,121
Particulars Current Year
% Previous Year
% NRs. NRs.
Total Loans and Advances 28,588,121
20,620,401 Loans to Top 10 Borrower 3,091,013 10.8 3,693,616 17.9
Loans to Single Largest Borrower 420,795 1.5 507,412 2.46
Particulars Current Year
% Previous Year
% NRs. NRs.
Total Non Funded Liabilities 3,777,878
2,845,749 Exposure to Top 10 Parties 2,034,805 53.9 957,815 33.7
Exposure to Single Largest Party 796,175 21.1 159,301 5.6
Sanima Bank
FINANCIAL REPORT 2014/1556
5.5. Deprived sector lending (DSL)NRB Directive 17 requires "A" class licensed institutions to lend at least 4.5 percent of their total outstanding loan and advances (including bills purchased and discounted) in deprived sector. The Banks' exposure in deprived sector lending is Rs 1,201,754,449 (PY Rs. 818,113,830) or 4.59% (PY 4.71%) against the requirement of 4.50%:
6. Deposit Liabilities6.1. Movement of DepositsThe movement of deposit liabilities is presented in the table below:
The Bank's year-on-year deposit liability increased by Rs. 9,171,467 thousands (36.9%), to reach Rs. 34,045,316 thousands.
6.2. Concentration of DepositsDeposits concentration is presented as under:
7. Weighted Average Interest Rate Spread The weighted average interest rate spread as on balance sheet date is presented as under:
8. Sta� Loans and AdvancesLoans to sta�s are provided in line with Employee Service Regulation of the Bank. Loans extended to sta� have increased during the year as more sta� became eligible and have availed such facilities. The loans outstanding as at the balance sheet date are as under:
Particulars Current Year Previous Year Change in
Volume % NRs. NRs.
Non Interest Bearing 2,001,316 980,793 1,020,523 104.1
Saving Deposit 12,452,252 8,009,973 4,442,279 55.5
Call Deposit 7,882,471 6,439,272 1,443,199 22.4
Fixed Deposit 11,709,277 9,443,811 2,265,466 24.0
Total 34,045,316 24,873,849 9,171,467 36.9
Particulars Current Year
% Previous Year
% NRs. NRs.
Total deposits 34,045,316
24,873,849 Deposits of Top 10 Parties
Individual 494,446 1.5 380,098 1.5
Institutional 7,360,762 21.6 4,177,553 16.8
Particulars Current year
rate (%) Previous year
rate (%) Average Rate of Return on Risk Assets & Investments 8.19 9.89
Average Rate on Deposits and Borrowings 4.36 5.88
Net Spread 3.83 4.01
Particulars Current Year (Rs.) Previous Year (Rs.)
Employee O/D Loan 4,985,284 4,797,592
Housing Loan 136,425,088 111,323,932
Advances to staff 1,522,154 1,371,845
Total 142,932,526 117,493,369
Sanima Bank
FINANCIAL REPORT 2014/1557
d) Deferred Tax Assets/ (Liability) Deferred tax assets and liabilities have been computed in accordance with NAS - 9, Income Taxes from 16 July 2014 and are attrib-utable to the following:
9 Taxationa) Advance TaxAdvance Tax Rs. 275,330,326 (PY Rs. 195,502,184) has been paid as additional tax liability for FY 2071/72.
b) Income TaxIncome tax return �led under self assessment procedures from 2068/69 to 2070/71 is yet to be reassessed by the Large Taxpayers O�ce. Any liability arising out of reassessment shall be provided for.
c) Income Tax Liability Income tax liability has been calculated as per Income Tax Act, 2002 and amendments thereto as follows:
Particulars
Amount (Rs.) Profit before Bonus and Tax as per financial
974,289,503
Less: Bonus
88,571,773
Profit after Bonus
885,717,730 Add:
Bond premium write off 4,086,877 Provision for staff leave 5,888,564 Depreciation (incl. amortization) as per Financial 67,503,756
77,479,197
Less: Premium on foreign bond on purchased 071-72 16,572,078
Bond premium w/o off matured bond 4,275,636 Leave Encashment 1,843,169 CMB written back 252,837 Depreciation as per Tax 73,760,906 Dividend Income 1,660,370 Gain on sale of Fixed Assets 345,535
98,710,530
Taxable profit as per Tax
864,486,397 Income Tax 30% 259,345,919
Particulars As per books of accounts Tax Base Temporary
Difference
Fixed Assets 362,374,170 345,734,832 16,639,338 Leasehold Assets and Computer Software 83,674,186 85,854,959 (2,180,773)
Premium paid on Bond - (16,760,836) 16,760,836 Provision for Staff Leave (15,713,879) - (15,713,879) Net Temporary Difference
15,505,522
Deferred Tax Liability/(Assets) as at Ashad end 2072 @ 30%
4,651,656
Deferred Tax Liability/(Assets) till Ashad end 2071
2,421,144
Deferred Tax Expense/(Income) for current year
2,230,513
Sanima Bank
FINANCIAL REPORT 2014/1558
10. Sta� Housing Sta� Housing Reserve required under the Labor Act 2048 has not been created as the Bank provides housing loan to its sta� as per the Employee Service Regulation.
11. GratuityThe Bank has made an additional provision of Rs. 7,643,124 (PY Rs. 5,892,373) for gratuity liability in the current year. The gratuity liability is fully funded and deposited at Citizen Investment Trust (CIT).
12. Sta� Leave Total leave liability provisioned for current �nancial year is Rs. 5,888,564. Bank has paid Rs. 1,843,169 (PY Rs. 1,318,726) as leave encashment to existing and to those sta� who resigned during FY 2014/15.
13. Provision for Sta� Bonus Sta� bonus has been calculated and provided at 10 percent of net pro�t after making adjustments for loan loss provision and sta� bonus.
14. Interest Realization after Year EndBank has not utilized the facility given in NRB Directive 4/071 for accounting in income the interest on customer loans and advanc-es which were due as at end of �nancial year and were collected within 15 days of end of �nancial year as it is not in accordance with prudent accounting practice and NAS. Bank has also not considered interest realized/realizable within 3 months of �scal year end as allowed by NRB Circular no 30/071/72 dated 2072/03/09.
15. Borrowing by the Bank against collateral of own Assets - NIL
16. Earnings Per Share, Share Price and Share Transaction Earnings Per Share (EPS) is calculated and disclosed as per NAS – 26 as follows:
Compared to last year, the EPS grew by Rs. 5.19 (PY by Rs. 4.15). The Bank has not issued preference share and debentures/bonds, thus, basic earnings per share and diluted earnings per share are same. The closing price of the share is Rs. 555 (PY Rs. 638).
17. Details of Non Banking Assets The Bank has not taken possession of any assets taken as security against the loans and advances.
18. Details of Leasehold Assets Amortization
19. Fixed Assets Used By Government in Road Expansion Government used total area 0-3-0-3 (3.1875 Ana) of the Bank with original cost Rs. 14,323,404 for road expansion in front of its Alkapuri Building, Naxal, Kathmandu. The Bank had lodged a claim of Rs. 28,000,000 on 23rd September 2012 (7th Ashoj 2069) with Kathmandu Valley Development Authority for compensation. Claims are accounted for on Cash basis.
Particulars Basic EPS Diluted EPS Net profit attributable to equity shareholders (Rs.) 624,141,298 624,141,298 Total Number of shares (No.) 25,502,400 25,502,400 Earnings Per Share (Rs.) 24.47 24.47
Cost Price Amortized up to last
year
Written off during the
year
Amortized during the
year
Total Amortized Amount
Net Book Value
115,932,149 21,372,318 4,526,957 9,521,184 35,420,459 80,511,690
20. Fixed Assets written o� due to EarthquakeDue to the devastating earthquake of April 25, 2015 Kalanki Branch was shifted from the existing location and leasehold assets of Rs. 2,495,579.85 were written o�. Similarly, construction works were halted in the new proposed location for Chuchchepati branch after earthquake and assets worth Rs. 178,406.59 were written o�.
21. Classi�cation of Assets And Liabilities Based On Maturity
Sanima Bank
FINANCIAL REPORT 2014/1559
19. Fixed Assets Used By Government in Road Expansion Government used total area 0-3-0-3 (3.1875 Ana) of the Bank with original cost Rs. 14,323,404 for road expansion in front of its Alkapuri Building, Naxal, Kathmandu. The Bank had lodged a claim of Rs. 28,000,000 on 23rd September 2012 (7th Ashoj 2069) with Kathmandu Valley Development Authority for compensation. Claims are accounted for on Cash basis.
20. Fixed Assets written o� due to EarthquakeDue to the devastating earthquake of April 25, 2015 Kalanki Branch was shifted from the existing location and leasehold assets of Rs. 2,495,579.85 were written o�. Similarly, construction works were halted in the new proposed location for Chuchchepati branch after earthquake and assets worth Rs. 178,406.59 were written o�.
21. Classi�cation of Assets And Liabilities Based On Maturity
S.N. Particulars 1-90 Days
91-180 Days
181-270 Days
271-365 Days
Over 1 Year
Total Amount
Assets 1 Cash Balance 691 - - - - 691 2 Balance with Banks & FIs 1,080
1,080
3 Investment in Foreign Banks 1,512 102 102 152 203 2,071 4 Call Money -
-
5 Government Securities 799 498 399 681 2,758 5,135 6 Nepal Rastra Bank Bonds -
-
7 Inter Bank & FI Lending
- 8 Loans & Advances 5,939 4,286 3,139 1,913 13,311 28,588 9 Interest Receivable 85
85
10 Reverse Repo -
-
11 Receivables from other Institutions under Commitment
-
12 Payment to be made for facilities under s. no 20,21 & 22 3,341 461 2,186 494
6,482
13 Others
12,485 12,485 Total Assets (A) 13,446 5,346 5,826 3,240 28,757 56,616
Liabilities 14 Current Deposits 242
1,753 1,995
15 Saving Deposits 1,918
18,417 20,335 16 Fixed Deposits 3,713 2,371 3,042 2,449 135 11,709 17 Debentures - - - - - - 18 Borrowings: 818 869 - - - 1,687
(a) Call/Short Notice
-
(b) Inter-bank/Financial Institutions
-
(c) Refinance 818 869
1,687 (d) Others
-
19 Other Liabilities and Provisions 572 - - - - 572 (a) Sundry Creditors 39
39
(b) Bills Payable
- (c) Interest Payable 17
17
(d) Provisions 382
382 (e) Others 135
135
20 Payable to other institutions under Commitment
-
21 Unutilized Approved Facilities 273
273
22 Letter of Credit/Guarantee (Net of Margin)
6,209 6,209
23 Repo -
-
24 Payment to be made for facilities under S. No 11 -
-
25 Others
11,684 11,684 Total Liabilities (B) 7,536 3,240 3,042 2,449 38,198 54,465 Net Financial Assets (A-B) 5,911 2,106 2,784 791 (9,441) 2,151
Cumulative Net Financial Assets 5,911 8,017 10,801 11,592 2,151 (0)
Sanima Bank
FINANCIAL REPORT 2014/1560
22. Related Parties The Bank has entered into �nancial transactions with the following related parties where directors have �nancial interest.
**Pending grant of license from Insurance Board, the Companies have yet to commence operation.
23.Total of key management personnel compensation (Disclosure as per NAS-16):
*Short term employment bene�t excludes medical insurance, income counted under car facility, di�erential interest income and prize money.Key management personnel are also eligible for the following bene�ts: 1. Bene�ts as per Employee Service Regulation of the Bank. 2. Bonus out of pro�t as per Bonus Act. 3. Housing loans and advances as per Housing Loan Scheme of the Bank.4. Vehicle facilities.Total no of Key Management Personnel (including CEO): 31
Related Party Nature of Relationship Nature of transaction
Current Year
Previous Year
Kantipur Television Pvt. Ltd
Common Promoters
Deposit
13 13
Medicare Hospital & Research Centre Pvt. Ltd 11,232 12,354
Sanima Hydro & Engineering Pvt. Ltd. 33 1,906
Sanima Life Insurance Company Ltd** 2,529 2,470
Sanima Insurance Company Ltd** 586 587
Sanima Foundation 3,549 55
Sanima Mai Hydro Power Ltd 22,048 25,333
Sanima Pvt. Ltd 7,227 764
Tamor Sanima Energy Pvt. Ltd. 1,010 10
Khumbu Carpet Industries 0 0.19
Sopan Multiple 13 13
Fund for Hydro Investment 1,480 1,457
Sanima Hydro Power Pvt. Ltd 666 745
Sanima Hydro & Engineering Pvt. Ltd Rental income
2402 2,344 Sanima Mai Hydro Power Ltd
Sanima Hydro Power Pvt. Ltd
IPAAN Deposit
211 205
Family Service Supermarket Pvt ltd - 1
Bhrikuti Trading 142 142
Sanima Mai Hydro Ltd. Investment in Shares
10,000 10,000
Sanima Life Insurance Co. Ltd. 350 350
Sanima Foundation 5 5
Details of Key Management Chief
Executive Officer Other key management Personnel (AM- DCEO)
Remarks
Short Term Employee Benefits* (FY 071/72)
9,629,458 44,539,343 Other Key Management Personnel
Include Deputy Chief Executive officer and
other management team of assistant manager
level & above
Post Employment Benefits (Pay against leave & Gratuity)
445,514 3,654,156
Termination Benefits NIL NIL Share Based Payments NIL NIL Other Long Term Benefits NIL NIL
Rs ’000
In Rs
Sanima Bank
FINANCIAL REPORT 2014/1561
24. Compensation to Board of Directors (BODs)All members of the Board are non-executive directors. Compensation to BODs and other related expenses are detailed below:
Directors are eligible for allowance of Rs. 10,000 per month or on actual bill whichever is less, for covering newspaper, telephone, internet and other communication expenses. Directors are paid Rs. 8,000 per meeting while chairman is paid Rs. 10,000 per meet-ing. Other expenses include reimbursement of travelling and hotel expenses for branches visit and above mentioned allowances.
Particulars Current Year (Rs.) Previous Year (Rs.) Meeting Fees 1,316,000 1,188,432 Other Expenses 717,706 801,381
Sanima Bank
FINANCIAL REPORT 2014/1562
Particulars Amount (Rs.) a Paid up Equity Share Capital 2,550,240,000 b Irredeemable Non-cumulative preference shares - c Share Premium - d Proposed Bonus Equity Shares 510,048,000 e Statutory General Reserves 365,328,259 f Retained Earnings 1,323,688 g Un-audited current year cumulative profit - h Capital Redemption Reserves - i Capital Adjustment Reserves - j Dividend Equalization Reserves - k Debenture Redemption Reserves - l Deferred Tax Reserve -
m Other Free Reserves - n Less: Goodwill - o Less: Fictitious Assets - p Less: Investment in equity of licensed Financial Institutions - q Less: Investment in equity of institutions with financial interests 10,355,000 r Less: Investment in equity of institutions in excess of limits - s Less: Investments arising out of underwriting commitments - t Less: Reciprocal crossholdings - u Less: Other Deductions - Total Tier 1 Capital 3,416,584,948
Disclosure as per Bank’s disclosure policy under the Capital Adequacy Framework of Nepal Rastra Bank
A. Capital Structure and Capital Adequacy• Tier 1 Capital and a breakdown of its Components
Particulars Amount (Rs) a Cumulative and/or Redeemable Preference Share
b Subordinated Term Debt c Hybrid Capital Instruments d General loan loss provision 314,160,075
e Exchange Equalization Reserves 3,198,743 f Investments Adjustment Reserves 555,000 g Assets Revaluation Reserves - h Other Reserves - Total Tier 2 Capital 317,913,818
• Details of Subordinated Term Debt: The Bank is in the process of issuing '7% Sanima Debenture 2079' in Shrawan 2072 (July-Aug 2015).
• Deductions from Capital: The Bank has invested Rs 10,355,000/- in Sanima Mai Hydro Power, Sanima Life Insurance and Sanima Foundation, which the bank has deducted from its core capital.
• Tier 2 Capital and a breakdown of its Components
Sanima Bank
FINANCIAL REPORT 2014/1563
Particulars Amount (Rs.) Core Capital (Tier 1) 3,416,584,948 Supplementary Capital (Tier 2) 317,913,818 Total Capital Fund 3,734,498,766
• Capital Adequacy Ratio: 11.08%
B. Risk Exposures• Risk weighted exposures for credit Risk, Market Risk and Operational Risk:
• Risk Weighted exposures under each 11 categories of Credit Risk:
RISK WEIGHTED EXPOSURES Amount (Rs.) Risk Weighted Exposure for Credit Risk 30,651,616,831 Risk Weighted Exposure for Operational Risk 1,179,750,998 Risk Weighted Exposure for Market Risk 575,610,060 Total Risk Weighted Exposures 32,406,977,889
S.N. Categories Amount (Rs.) 1 Claims on Government and Central Bank 751,754,052 2 Claims on Other Financial Entities - 3 Claims on Banks 692,645,214 4 Claims on Domestic Corporate and Securities Firms 15,009,607,025 5 Claims on Regulatory Retail Portfolio & Other Retail Portfolio 5,749,961,360 6 Claims secured by residential properties 1,441,514,497 7 Claims secured by Commercial real estate 384,623,586 8 Past due claims 40,323,370 9 High Risk claims 3,080,491,692
10 Other Assets 1,011,413,945 11 Off Balance Sheet Items 2,489,282,091
Total 30,651,616,831
• Total Risk Weight Exposures calculation Table:
RISK WEIGHTED EXPOSURES Amount (Rs.) Risk Weighted Exposure for Credit Risk 30,651,616,831 Risk Weighted Exposure for Operational Risk 1,179,750,998 Risk Weighted Exposure for Market Risk 575,610,060 Add: ALM policies & practices are not satisfactory, add 1% of net interest income to RWE 8,187,178
Add: RWE equivalent to reciprocal of capital charge of 3% of gross income
330,369,208
Add: 3% of RWE for Overall risk management policies and procedures are not satisfactory
972,209,337
Total Risk Weighted Exposures 33,717,743,612 Total Core Capital to Total Risk Weighted Exposures 10.13% Total Capital to Total Risk Weighted Exposures 11.08%
• Total Qualifying Capital:
Sanima Bank
FINANCIAL REPORT 2014/1564
• Amount of Non-Performing Assets (NPA) (Both Gross and Net in Rs.):
• NPA Ratios:
• Movement in Non Performing Assets:
• Write off Loans and Interest Suspense:
• Movement in Loan Loss Provision and Interest Suspense
• Details of Additional Loan Loss Provision during the year: Movement in Non Performing Assets:
Particulars Gross Amount Loan Loss Provision Net NPA Restructured - - - Sub-Standard 11,505,859 2,876,465 8,629,394 Doubtful 5,245,931 2,622,966 2,622,966 Loss 4,062,174 4,062,174 - Total 20,813,964 9,561,604 11,252,360 Particulars Gross Amount Loan Loss Provision Net NPA Restructured - - - Sub-Standard 11,505,859 2,876,465 8,629,394 Doubtful 5,245,931 2,622,966 2,622,966 Loss 4,062,174 4,062,174 - Total 20,813,964 9,561,604 11,252,360
NPA Ratios % Gross NPA to Gross Advances 0.07 Net NPA to Net Advances 0.04
Particulars Current Year Previous Year Change (%) Non Performing Assets (Volumes in Rs.) 20,813,964 3,582,854 481 Non Performing Assets (%) 0.07 0.02 250
Particulars Amount (Rs.) Loans written off during the year 608,998 Interest Suspense written off during the year 159,731 Total 768,729
Particulars Current Year (Rs) Previous Year (Rs) Change (%) Loan Loss Provision 324,070,725 248,957,246 30 Interest Suspense 62,167,185 41,353,074 50
Particulars Amount (Rs) Pass 79,504,891 Watch-List 24,689,776 Restructured - Sub-Standard 2,876,465 Doubtful 2,622,966 Loss 3,230,553 Total 112,924,651
Sanima Bank
FINANCIAL REPORT 2014/1565
• Segregation of Investment Portfolio:
• Eligible Credit Risk Mitigants (CRM) as on 31st Ashadh 2072 (16th July, 2015)
Particulars Amount (Rs.) Deposits with Bank 242,029,974 Gold 279,833,437 Total 521,863,411
C. Risk Management Functions & BASEL II DisclosureNepal Rastra Bank has directed the Banks to develop own internal policy, procedures and structures to manage all material risk inherent in business for assessing capital adequacy in relation to the risk pro�les as well as strategies for maintaining capital levels. This includes basic requirements of having good governance, e�cient process of managing all material risks and an e�ective regime for assessing and maintaining adequate capital. The Bank has various BODs approved risk management policies for proper governance.
Restructuring of Organization The Bank has restructured its organizational setup and continuous steps are taken to reengineer the processes to cater with the various systematic and unsystematic risks.
Appointment of CROChief Risk O�cer (CRO), along with his team, is responsible for overall risk management of the Bank which includes managing, assessing, identifying, monitoring and reducing pertinent global, macro and micro-economic level business risks that could interfere with Banks objective and goals and whether the Bank is in substantial compliance with its internal operating policies and other applicable regulations and procedures, external, legal, regulatory or contractual requirements on a continuous basis. Further, CRO ensures integration of all major risk in capital assessment process.
Risk Management Committee (RMC)Board level risk management committee has been set up under NRB Directive for ensuring/reviewing bank's risk appetite are in line with the policies and CRO acts as member secretary. CRO closely monitors and report on credit related risks in ALCO & RMC meeting.
Operational RiskBoard and senior management of the bank places high priority on e�ective operational risk management and adherence to sound operating controls.
• Policies/Guidelines explicitly supports the identi�cation, assessment, control and reporting of key risks.• Emphasizes on dual controls, • E�ective monitoring and internal reporting, • Contingency and business continuity plans, • High standards of ethics and integrity,• Commitment to good corporate governance and • Segregation of duties and clear lines of management responsibility, accountability and reporting.
Particulars Amount (Rs) Held for Trading 24,924,520 Held to Maturity 7,706,658,264 Available for sale 12,657,600 Total Investment 7,744,240,384
Market RiskSanima has Market Risk Management Policy developed in line with Risk Management Guidelines issued by NRB to assess and actively manage all material market risks, wherever they arise throughout the bank and a capital charge is provided for such risks. Stress testing technique also covers the capital requirement on market shock. Foreign Currency peak position, interest rate risk, stock position is discussed in ALCO meetings on monthly basis For interest risk management, appropriate assets and liability mismatch (GAP analysis) is measured as per policy so as to minimize sudden fall in NII. Investments in stock are revalued at the end of every month and Open positions in foreign currencies are monitored daily. Prompt Action is taken to keep open positions and foreign currency exchange risk to a minimum level. Regulatory limits too are ensured at all time.
Adequate care is taken to ensure the maturity of deposits to match with assets maturity. Adequate liquidity is ensured even in stressed scenarios. Various ratios as per liquidity risk management policy are assessed. Treasury department plays the vital role for monitoring same and report to ALCO..
Compliance Compliance o�cer has been entrusted with the responsibility of assessment, identi�cation and reporting to CRO the Operational, Liquidity & Market Risk in conformity with risk management policies of Sanima.
Assets and Liability Committee (ALCO)The ALCO, chaired by Chief Executive O�cer, ensures functioning of the banking business in line with the set procedures and processes and recommends for necessary steps to address the risk associated with liquidity, movement in interest rate, exchange rate and equity price and other risks.
Stress TestingStress Testing is a risk management technique used to evaluate the potential e�ects on an institution’s �nancial condition, of a set of speci�ed changes in risk factors, corresponding to exceptional but plausible events. The Bank conducts the stress test on quarterly basis and reports to senior management.
Internal Capital Adequacy Assessment Process (ICAAP)The Bank has developed a comprehensive ICAAP document. The ICAAP has two major components; �rst is an internal process to identify measure, manage and report risks to which the bank is exposed or could be exposed in the future; and second is an internal process to plan and manage a bank’s capital so as to ensure adequate capital. The Bank also conducts the stress test on quarterly basis and reports to senior management. The Bank in line with BASEL provisions and ICAAP document assesses risk exposures and allocated su�cient capital/cushion for perceived risks. The adequacy of capital is main agenda of any ALCO, Man-Com and board meetings.
Maker-Checker PolicyThe Bank has adopted Maker-Checker Policy in all of the transactions. Each and every transaction is entered and authorized in CBS by two di�erent individuals for better control and any deviations are closely monitored. The activities of any personnel can be monitored centrally through an integrated system which helps in minimizing the risk of misconduct
Information TechnologyThe Bank has maintained in-house cold site for disaster recovery. The disaster recovery site and production server site have been kept in well-maintained buildings. Periodic drill is conducted to assess the functioning of DRS. Also, the desktops are implement-ed with Active Directory System (ADS) which does not allow users to replicate or bring the data in/from any unauthorized remov-able devices.
Internal AuditInternal audit of the Bank is independent from the management and directly reports to Audit Committee, a board level commit-tee. Audit functions are carried out by experienced sta�s and regular observations are being communicated to the related depart-ments/ branches/ sta�s. Audit committee holds its meeting at least once in a quarter.
Sanima Bank
FINANCIAL REPORT 2014/1566
C. Risk Management Functions & BASEL II DisclosureNepal Rastra Bank has directed the Banks to develop own internal policy, procedures and structures to manage all material risk inherent in business for assessing capital adequacy in relation to the risk pro�les as well as strategies for maintaining capital levels. This includes basic requirements of having good governance, e�cient process of managing all material risks and an e�ective regime for assessing and maintaining adequate capital. The Bank has various BODs approved risk management policies for proper governance.
Restructuring of Organization The Bank has restructured its organizational setup and continuous steps are taken to reengineer the processes to cater with the various systematic and unsystematic risks.
Appointment of CROChief Risk O�cer (CRO), along with his team, is responsible for overall risk management of the Bank which includes managing, assessing, identifying, monitoring and reducing pertinent global, macro and micro-economic level business risks that could interfere with Banks objective and goals and whether the Bank is in substantial compliance with its internal operating policies and other applicable regulations and procedures, external, legal, regulatory or contractual requirements on a continuous basis. Further, CRO ensures integration of all major risk in capital assessment process.
Risk Management Committee (RMC)Board level risk management committee has been set up under NRB Directive for ensuring/reviewing bank's risk appetite are in line with the policies and CRO acts as member secretary. CRO closely monitors and report on credit related risks in ALCO & RMC meeting.
Operational RiskBoard and senior management of the bank places high priority on e�ective operational risk management and adherence to sound operating controls.
• Policies/Guidelines explicitly supports the identi�cation, assessment, control and reporting of key risks.• Emphasizes on dual controls, • E�ective monitoring and internal reporting, • Contingency and business continuity plans, • High standards of ethics and integrity,• Commitment to good corporate governance and • Segregation of duties and clear lines of management responsibility, accountability and reporting.
Market RiskSanima has Market Risk Management Policy developed in line with Risk Management Guidelines issued by NRB to assess and actively manage all material market risks, wherever they arise throughout the bank and a capital charge is provided for such risks. Stress testing technique also covers the capital requirement on market shock. Foreign Currency peak position, interest rate risk, stock position is discussed in ALCO meetings on monthly basis For interest risk management, appropriate assets and liability mismatch (GAP analysis) is measured as per policy so as to minimize sudden fall in NII. Investments in stock are revalued at the end of every month and Open positions in foreign currencies are monitored daily. Prompt Action is taken to keep open positions and foreign currency exchange risk to a minimum level. Regulatory limits too are ensured at all time.
Adequate care is taken to ensure the maturity of deposits to match with assets maturity. Adequate liquidity is ensured even in stressed scenarios. Various ratios as per liquidity risk management policy are assessed. Treasury department plays the vital role for monitoring same and report to ALCO..
Compliance Compliance o�cer has been entrusted with the responsibility of assessment, identi�cation and reporting to CRO the Operational, Liquidity & Market Risk in conformity with risk management policies of Sanima.
Assets and Liability Committee (ALCO)The ALCO, chaired by Chief Executive O�cer, ensures functioning of the banking business in line with the set procedures and processes and recommends for necessary steps to address the risk associated with liquidity, movement in interest rate, exchange rate and equity price and other risks.
Stress TestingStress Testing is a risk management technique used to evaluate the potential e�ects on an institution’s �nancial condition, of a set of speci�ed changes in risk factors, corresponding to exceptional but plausible events. The Bank conducts the stress test on quarterly basis and reports to senior management.
Internal Capital Adequacy Assessment Process (ICAAP)The Bank has developed a comprehensive ICAAP document. The ICAAP has two major components; �rst is an internal process to identify measure, manage and report risks to which the bank is exposed or could be exposed in the future; and second is an internal process to plan and manage a bank’s capital so as to ensure adequate capital. The Bank also conducts the stress test on quarterly basis and reports to senior management. The Bank in line with BASEL provisions and ICAAP document assesses risk exposures and allocated su�cient capital/cushion for perceived risks. The adequacy of capital is main agenda of any ALCO, Man-Com and board meetings.
Maker-Checker PolicyThe Bank has adopted Maker-Checker Policy in all of the transactions. Each and every transaction is entered and authorized in CBS by two di�erent individuals for better control and any deviations are closely monitored. The activities of any personnel can be monitored centrally through an integrated system which helps in minimizing the risk of misconduct
Information TechnologyThe Bank has maintained in-house cold site for disaster recovery. The disaster recovery site and production server site have been kept in well-maintained buildings. Periodic drill is conducted to assess the functioning of DRS. Also, the desktops are implement-ed with Active Directory System (ADS) which does not allow users to replicate or bring the data in/from any unauthorized remov-able devices.
Internal AuditInternal audit of the Bank is independent from the management and directly reports to Audit Committee, a board level commit-tee. Audit functions are carried out by experienced sta�s and regular observations are being communicated to the related depart-ments/ branches/ sta�s. Audit committee holds its meeting at least once in a quarter.
Sanima Bank
FINANCIAL REPORT 2014/1567
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Sanima Bank
FINANCIAL REPORT 2014/1568
Schedule 35
Figures in Rs '000
In Amount In %1 Total Capital and Liabilities (1.1 to 1.7) 40,272,468 40,301,197 28,730 0.07
1.1 Paid Up Capital 2,550,240 3,060,288 510,048 - 1.2 Reserve and Surplus 887,353 370,406 (516,948) (58.26) 1.3 Debenture and Bond - - - - 1.4 Borrowings 1,687,185 1,687,185 - - 1.5 Deposits (a+b) 34,045,316 34,045,316 0 0.00
a. Domestic Currency 31,784,223 31,784,223 (0) (0.00) b. Foreign Currency 2,261,094 2,261,094 0 0.00
1.6 Income Tax Liability - - - -
1.7 Other Liabilities 1,102,373 1,138,002 35,629 3.23 Regrouping some Accounts2 Total Assets (2.1 to 2.7) 40,272,468 40,301,197 28,730 0.07
2.1 Cash & Bank Balance 1,771,031 1,771,031 0 0.00 2.2 Money at Call and Short Notice - - - 2.3 Investments 7,744,240 7,744,240 - -
2.4 Loans and Advances 28,229,003 28,264,051 35,048 0.12 Write back of buffer provision
a. Real Estate Loan 1,958,358 1,958,358 - - 1. Residential Real Estate Loan (Except Personal Home Loan up to Rs. 10 Million) 388,746 388,746 - - 2. Business Complex & Residential Apartment Construction Loan 561,605 561,605 - - 3. Income Generating Commercial Complex Loan 35,346 35,346 - 4. Other Real Estate Loan (Including Land Purchase and Plotting) 972,660 972,660 - b. Personal Home Loan of Rs. 10 Million or Less 2,196,588 2,196,588 - c. Margin Type Loan 381,614 381,614 - - d. Term Loan 4,445,878 4,445,878 - - e. Overdraft Loan/TR Loan/WC Loan 10,099,362 10,099,362 - f. Others 9,147,203 9,147,203 -
2.5 Fixed Assets 615,176 614,772 (405) (0.07) Depreciation Adjustment2.6 Non Banking Assets - - - - 2.7 Other Assets 1,913,017 1,907,104 (5,914) (0.31) Regrouping some Accounts
3 Profit and Loss Account3.1 Interest Income 2,548,884 2,548,884 - - 3.2 Interest Expense 1,409,494 1,409,494 - -
A. Net Interest Income (3.1-3.2) 1,139,390 1,139,390 - -
3.3 Fees, Commission and Discount 53,493 53,468 (24) (0.05) Netting off Remittance Commission
3.4 Other Operating Income 131,655 131,295 (359) (0.27) CIBL expense Adjustments3.5 Foreign Exchange Gain/Loss (Net) 178,826 178,747 (79) (0.04) Transfer to unearned income
B. Total Operating Income (A+ 3.3+3.4+3.5) 1,503,363 1,502,900 (462) (0.03) 3.6 Staff Expenses 182,321 182,321 - - 3.7 Other Operating Expenses 272,235 275,446 3,210 1.18 Writing off expenses
C. Operating Profit Before Provision (B. -3.6-3.7) 1,048,807 1,045,134 3,673 0.35
3.8 Provision for Possible Losses 114,489 119,441 4,952 4.33 Additonal Loan Loss Provision made
D. Operating Profit (C.-3.8) 934,318 925,693 8,625 0.92 3.9 Non Operating Income/Expenses (Net) 7,377 7,344 (33) (0.45) Regrouping some Accounts
3.10 Write Back of Provision For Possible Loss 1,861 41,861 40,000 2,149 Provision write backE. Profit from Regular Activities (D.+3.9+3.10) 943,556 974,899 (31,342) (3.32)
3.11 Extraordinary Income/Expenses (Net) (609) (609) - - F. Profit before Bonus and Taxes (E. +3.11) 942,947 974,290 (31,342) (3.32)
3.12 Provision for Staff Bonus 85,722 88,572 2,849 3.32
3.13 Provision For Tax 253,029 261,576 8,548 3.38 G. Net Profit/(Loss) (F. -3.12-3.13) 604,196 624,141 19,945 3.30
Provision write back & Deferred tax adjustments
Reasons for Variance
Variance
Sanima Bank LimitedComparison of Unaudited and Audited Financial Statements as of Fiscal Year 2071/72 (2014/15)
S.N. Particulars
As per Unudited Financial
Statements
As per Audited
Financial Statements
Sanima Bank
FINANCIAL REPORT 2014/1569
Schedule (A)
Figures in Rs '000
16th July 2015 13th April 2015 16th July 20141 Total Capital and Liabilities (1.1 to 1.7) 40,272,468 39,029,906 29,376,986
1.1 Paid Up Capital 2,550,240
2,550,240 2,550,240 1.2 Reserve and Surplus 887,353 706,369 283,157 1.3 Debenture and Bond - - - 1.4 Borrowings 1,687,185 1,948,358 898,268 1.5 Deposits (a+b) 34,045,316 32,259,467 24,873,849
a. Domestic Currency 31,784,223 29,747,707 23,533,704 b. Foreign Currency 2,261,094 2,511,760 1,340,145
1.6 Income Tax Liability - - - 1.7 Other Liabilities 1,102,373 1,565,472 771,472
2 Total Assets (2.1 to 2.7) 40,272,468 39,029,906 29,376,986 2.1 Cash & Bank Balance 1,771,031 2,983,140 3,511,914 2.2 Money at Call and Short Notice - - - 2.3 Investments 7,744,240 6,278,898 3,715,503 2.4 Loans and Advances(Net) 28,229,003 27,555,583 20,371,444
a. Real Estate Loan 1,958,358 1,852,879 931,294 1. Residential Real Estate Loan (Except Personal Home Loan up to Rs. 100 lacs) 388,746 294,105 136,114 2. Business Complex & Residential Apartment Construction Loan 561,605 543,698 161,458 3. Income Generating Commercial Complex Loan 35,346 35,840 - 4. Other Real Estate Loan (Including Land Purchase and Plotting) 972,660 979,235 633,723 b. Personal Home Loan of Rs. 100 Lacs or Less 2,196,588 1,515,158 1,147,464 c. Margin Type Loan 381,614 505,364 459,056 d. Term Loan 4,445,878 4,296,704 3,420,567 e. Overdraft Loan/TR Loan/WC Loan 10,099,362 10,018,863 7,925,634 f. Others 9,147,203 9,366,616 6,487,428
2.5 Fixed Assets 615,176 596,126 502,236 2.6 Non Banking Assets - - - 2.7 Other Assets 1,913,017 1,616,159 1,275,889
3 Profit and Loss Account Upto 4th
Quarter This Year
Upto 3rd Quarter This Year
Upto 4th Quarter Last Year
3.1 Interest Income 2,548,884 1,810,938 2,018,506 3.2 Interest Expense 1,409,494 989,144 1,199,788
A. Net Interest Income (3.1-3.2) 1,139,390 821,793 818,718 3.3 Fees, Commission and Discount 53,493 38,307 39,825 3.4 Other Operating Income 131,655 102,646 85,438 3.5 Foreign Exchange Gain/Loss (Net) 178,826 136,331 146,889
B. Total Operating Income (A+ 3.3+3.4+3.5) 1,503,363 1,099,078 1,090,870 3.6 Staff Expenses 182,321 138,490 134,381 3.7 Other Operating Expenses 272,235 195,714 206,382
C. Operating Profit Before Provision (B. -3.6-3.7) 1,048,807 764,875 750,106 3.8 Provision for Possible Losses 114,489 105,824 95,212
D. Operating Profit (C.-3.8) 934,318 659,050 654,894 3.9 Non Operating Income/Expenses (Net) 7,377 4,632 21,566
3.10 Write Back of Provision For Possible Loss 1,861 1,248 1,527 E. Profit from Regular Activities (D.+3.9+3.10) 943,556 664,930 677,987
3.11 Extraordaniry Income/Expenses (Net) (609) - (308) F. Profit before Bonus and Taxes (E. +3.11) 942,947 664,930 677,679
3.12 Provision for Staff Bonus 85,722 60,448 61,607 3.13 Provision For Tax 253,029 181,270 188,476
G. Net Profit/(Loss) (F. -3.12-3.13) 604,196 423,212 427,596
16th July 2015 13th April 2015 16th July 20144.1 Capital Fund to RWA (% ) 11.19 10.65 12.54 4.2 Non Performing Loan (NPL) to Total Loan (%) 0.07 0.10 0.02 4.3 Total Loan Loss Provision to Total NPL (%) 1,533.19 1,306.81 6,948.57 4.4 Cost of Fund after CRR(%) 5.02 4.96 6.29 4.5 Credit To Deposit Ratio (Calculated as per NRB Directives) (%) 76.10 77.75 74.35 4.6 Base Rate (%) 7.50 7.62 8.22 4.7 Interest Spread (as per NRB Directives) (%) 3.91 3.81 4.35
5 Additional Information5.1 Average Yield LCY (%) 9.02 9.11 10.44
5.2 Earning Per Share (Rs.) 23.69 22.35 19.28
5.3 Networth Per Share (Rs.) 134.79 127.70 127.77
5.4 Net Liquid Assets/Total Deposit (%) 22.32 21.76 26.68
5.5 Price Earning Ratio(%) 23.43 24.97 33.09
5.6 Total Assets per Share (Rs) 1,579.16 1,530.44 1,324.72
5.7 Return on Equity (%) 17.58 17.50 15.09
5.8 Return on Total Assets (%) 1.50 1.46 1.46
Sanima Bank Limited
As atParticulars
As atRatios4
S.N.
Unaudited Financial Results (Quarterly)As at 4th Quarter ( 31st Ashad 2072) of the Fiscal Year 2071/72
Sanima Bank
FINANCIAL REPORT 2014/1570
Report
Sanima Bank
FINANCIAL REPORT 2014/1571
Corporate Social ResponsibilityFree Health Camp, Narayanghat
Banking Awareness Programme, Damak
Supporting Everest Expedition
Sanima Scholarship, Butwal
Sanima Bank
FINANCIAL REPORT 2014/1573
Inauguration of nayabazar branch
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Branch List
INSIDE VALLEY:NewroadBranch Manager -Rabindra TuladharPhone: 01-4233669,01-4233668 Fax: 01-4233673 KumaripatiBranch Manager -Samir Jung RayamajhiPhone: 01-5008597, 01-5008598Fax: 01-5008596
SuryavinayakBranch Manager -Prabin JonchhePhone: 01-6614515, 6619384Fax: 01-6619385
ChuchchepatiBranch Manager -Bimal BastolaPhone: 01-4490041, 6222806Fax: 01-4499507 GongabuBranch Manager - Ranjan MainaliPhone: 01- 4389378, 4389388Fax: 4389520
SatdobatoBranch Manager-Manoj BhattraiPhone: 01-5527425/95Fax: 5526260 KalankiBranch Manager -Satya KCPhone: 01-4670771,4670772Fax: 4670773
New BaneshworBranch Manager-Bishal DahalPhone: 01-4781470Fax: 01-4785774 TekuBranch Manager-Anjana Regmi AcharyaPhone: 01-4219568/9 Fax: 01-4219570
EkantakunaBranch Manager-Aayush AryalPhone: 01-5520967/5538796 Fax: 01-5542832 NayabazarBranch Manager-Bishnu LaL ShresthaPhone: 01-4365604,014388321Fax: 01-4366312
OUTSIDE VALLEY:Damak, JhapaBranch Manager -Phanindra DahalPhone: 023-585161Fax: 023-585162
Dhadingbesi, DhadingBranch Manager -Bishal DhakalPhone: 010-520967Fax: 010-520968
Pokhara, KaskiBranch Manager-Bhabuk Tandukar Phone: 061-525042Fax: 061-525043
Narayangarh, ChitwanBranch Manager -Binod ThapaPhone: 056-571959, 571761Fax: 056-571968
Inaruwa, SunsariBranch Manager-Akash DahalPhone: 025-561747Fax: 025-561748
Belbari, MorangBranch Manager-Keshab ShresthaPhone: 021-546082Fax: 021-545348
Bhandara, ChitwanBranch Manager -Dhal Bahadur KhadkaPhone: 056-550656Fax: 056-550657
Myanglung, SunsariBranch Manager-Suvash DhunganaPhone: 026-460734Fax: 026-460735
Nepalgunj, SurkhetBranch Manager -Ankit Khanal Phone: 081-521897Fax: 081-521898
Biratnagar, MorangBranch Manager -Romila KoiralaPhone: 021-521890,521901/3Fax: 021-521904
Khadbari SankhhuwasabhaBranch Manager-Prem PaudelPhone: 029-560986Fax: 029-560987
Naubise, DhadingBranch Manager-Bhola Raj PantaPhone: 010-401014Fax: 010-401036
Birgunj, ParsaBranch Manager -Kabindra PalPhone: 051-529185/86, 529405Fax: 051-529406
Butwal, RupandehiBranch Manager-Niraj Simkhada Phone: 071-545497/98 Fax: 071-543747
Hetauda, MakwanpurBranch Manager-Rameshwar KhatiwadaPhone: 057-527373 /527374 Fax: 057-526873
Dhangadi, KailaliBranch Manager-Meg Raj Khadka Phone: 091-416481/417482 Fax: 091-417181
Ghorahi, DangBranch Manager-Dilip Kumar RanaPhone: 082-562964 Fax: 082-561930
Mahendranagar, KanchanpurBranch Manager-Manohar ThagurathiPhone: 099-521249/521164 Fax: 099-521142
Birendranagar, SurkhetBranch Manager-Lokmani ThapaPhone: 083-525346Fax: 083-525241 Siddhartha Nagar, RupandehiBranch Manager-Dinesh BhandariPhone: 071-521881/521884/521885 Fax: 071-521843
Kalaiya, BaraBranch Manager-Ashish AmatyaPhone: 053-551942/551943 Fax: 053-551944 Janakpur, DhanushaBranch Manager-Md. Anwar AliPhone: 041-530472/530473/530474 Fax: 041-530475
Lahan, SirahaBranch Manager-Ajay Kumar YadavPhone: 033-562406,562407,562408Fax: 033-562409
Dharan, SunsariBranch Manager-Gayatri Prasad SubediPhone: 025-522054/522868/522327 Fax: 025-522290 Itahari, SunsariBranch Manager-Choodamani ChapagainPhone:025-587571/587572/587573 Fax: 025-587594
Birtamod, JhapaBranch Manager-Bishal GhimirePhone: 023-544505/542455
Main Branch"Alakapuri", Naxal, KathmanduG.P.O. Box: 20394Phone: 01- 4428979, 4428980 Fax: 01-4428969www.sanimabank.com