Himalayan Bank Limited: (Amount in RS.) Capital and Liabilities Schedule Current Year Previous Year

HIMALAYAN BANK LIMITED
BALANCE SHEET AS AT Ashad 31, 2069 (July 15, 2012) CAPITAL AND LIABILITIES 1. Share Capital 2. Reserves and Funds 3. Debentures and Bonds 4. Borrowings 5. Deposits 6. Bills Payables 7. Proposed Dividend 8. Income Tax Liabilities 9. Other Liabilities Total Capital & Liabilities 7 Schedule 1 2 3 4 5 6 Current Year 2,760,000,000 1,872,010,133 500,000,000 47,730,993,909 19,003,372 322,106,400 1,160,314,068 54,364,427,882 (Amount in Rs.) Previous Year 2,400,000,000 1,595,478,273 500,000,000 10,000,000 40,920,627,030 31,655,586 336,842,000 941,600,995 46,736,203,884
ASSETS 1. Cash Balance 2. Balance with Nepal Rastra Bank 3. Balance with Banks / Financial Insitutions 4. Money at Call and Short Notice 5. Investments 6. Loan Advances and Bills Purchase 7. Fixed Assets 8. Non - Banking Assets 9. Other Assets Total Assets Contingent Liabilities Declaration of Directors Statement of Capital Fund Credit Risk Credit Risk Mitigation Operation Risk Market Risk Principal Indicators Principal Accounting Policies Notes to Accounts
Schedule 8 9 10 11 12 13 14 15 16
Current Year 951,333,515 3,979,163,789 1,431,798,854 264,600,000 10,031,580,497 34,965,433,862 1,305,364,357 1,435,153,008 54,364,427,882
Previous Year 632,046,156 1,390,625,787 941,979,378 734,000,000 8,769,938,671 31,566,976,755 1,187,493,049 1,513,144,088 46,736,203,884 Schedule 17 Schedule 29 Schedule 30 (A1) Schedule 30 (B) Schedule 30 (C) Schedule 30 (D) Schedule 30 (E) Schedule 31 Schedule 32 Schedule 33
Schedules 1 to 17 & 32 and 33 form an integral part of this Balance Sheet
Satish Raj Joshi Executive Financial Officer
Sushiel Joshi General Manager
Ejaz Qadeer Gill Senior General Manager As per our attached report of even date
Ashoke S. Rana Chief Executive Officer Directors Manoj Bahadur Shrestha Chairman CA. Prabhu Ram Bhandary Managing Partner Joshi & Bhandary Chartered Accountants
Surendra Silwal Prachanda Bahadur Shrestha Bijaya Bahadur Shrestha Radha Krishna Pote Sushil Bikram Thapa Upendra Keshari Poudyal

PROFIT AND LOSS ACCOUNT FOR THE PERIOD FROM SHRAWAN 1, 2068 TO ASHAD 31, 2069 (JULY 17, 2011 TO JULY 15, 2012) Particulars 1. Interest Income 2. Interest Expenses Net Interest Income 3. Commission and Discount 4. Other Operating Income 5. Exchange Fluctuation Income Total Operating Income 6. Staff Expenses 7. Other Operating Expenses 8. Exchange Fluctuation Loss Operating Profit before Provision for Possible Losses 9. Provision for Possible Losses Operating Profit 10. Non-Operating Income/(Loss) 11. Loan Loss Provision Written-Back Profit from Regular Operations 12. Profit/(Loss) from Extra-ordinary Activities Net Profit after considering all Activities 13. Staff Bonus Provision 14. Tax Provision a) Current Years b) Previous Year's Additional Tax c) Deferred Tax Net Profit/(Loss) Schedules 18 to 28 & 32 and 33 form an integral part of this Profit and Loss Account 28 26 27 25 23 24 22 20 21 22 Schedule 18 19 Current Year 4,724,887,323 2,816,441,404 1,908,445,919 510,840,279 182,028,635 309,897,962 2,911,212,795 634,228,832 714,436,436 1,562,547,527 505,491,167 1,057,056,360 8,005,610 859,976,635 1,925,038,605 (397,037,895) 1,528,000,710 138,909,155 430,453,295 450,548,218 377,880 (20,472,803) 958,638,260 (Amount in Rs.) Previous Year 4,326,140,588 2,414,807,243 1,911,333,345 350,365,112 129,516,981 195,528,538 2,586,743,976 517,591,827 582,209,813 1,486,942,336 471,728,863 1,015,213,473 15,855,933 228,145,590 1,259,214,996 102,292,025 1,361,507,021 123,773,366 344,618,512 338,351,341 813,229 5,453,942 893,115,143
Ashoke S. Rana Chief Executive Officer Directors Manoj Bahadur Shrestha Chairman CA. Prabhu Ram Bhandary Managing Partner Joshi & Bhandary Chartered Accountants

PROFIT AND LOSS APPROPRIATION ACCOUNT FOR THE PERIOD FROM JULY 17, 2011 TO JULY 15 , 2012 Particulars Income 1. Accumulated Profit up to Last Year 2. Current Year's Profit 3. Transfer from Capital Adjustment Fund 4. Transfer from Deferred Tax Reserve 5. Transfer from Investment Adjustment Reserve Total Expenses 1. Accumulated Loss up to Last Year 2. Current year's Loss 3. General Reserve 4. Contingent Reserve 5. Institutional Development Fund 6. Dividend Equalization Fund 7. Staff Related Reserve Fund 8. Proposed Dividend 9. Proposed Issue of Bonus Share 10. Special Reserve Fund 11. Exchange Fluctuation Fund 12. Capital Redemption Reserve Fund 13. Capital Adjustment Fund 14. Bond Redemption Reserve 15. Deferred Tax Reserve 16. Investment Adjusment Reserve Total 17. Accumulated Profit / (Loss) 965,735,426 72,898,928 191,727,652 322,106,400 360,000,000 71,428,571 20,472,803 178,623,029 336,842,000 400,000,000 6,682,321 71,428,571 47,258,636 1,040,834,557 32,931,797 47,064,297 1,038,634,354 32,931,797 958,638,260 136,587,269 893,115,143 38,610,000 5,453,942 1,073,766,354 Current Year (Amount in Rs.) Previous Year
Ashoke S. Rana Chief Executive Officer Directors Manoj B. Shrestha Chairman CA. Prabhu Ram Bhandary Managing Partner Joshi & Bhandary Chartered Accountants
HIMALAYAN BANK LIMITED STATEMENT OF CHANGES IN EQUITY FOR THE PERIOD FROM SHRAWAN 1, 2068 TO ASHAD 31, 2069 (JULY 17, 2011 TO JULY 15, 2012) PARTICULARS SHARE CAPITAL ACCUMULATED PROFIT/(LOSS) GENERAL RESERVE PROPOSED SPECIAL BONUS SHARE RESERVE FUND EXCHANGE FLUCTUATION OTHER RESERVE FUND DEFERRED TAX RESERVE INVESTMENT ADJUSTMENT RESERVE 48,737,575 2,901,279 20,472,803 48,737,575 (47,064,297) 23,374,082 1,673,278 TOTAL AMOUNT
Opening Balance as at 17 July 2011 Changes in Accounting Policies Restated Balance as at 17 July 2010 Net Profit for the year Transfer to General Reserve Bond Redemption Fund transferred Proposed Dividend Issue of Bonus Share Proposed Issue of Bonus Shares Trasnser to Deferred Tax Reserve Transfer to Exchange Fluctuation Fund Transfer to Bond Redemption Fund Transfer from Investment Adjustment Reserve Closing Balance
2,000,000,000 2,000,000,000 -
32,931,797 32,931,797 958,638,260 (191,727,652) (322,106,400)
1,191,423,439 1,191,423,439 191,727,652 1,383,151,091
400,000,000 400,000,000 (400,000,000) 360,000,000 360,000,000
4,000,000 4,000,000 4,000,000
29,769,898 29,769,898 29,769,898
285,714,285 285,714,285 71,428,571 357,142,856
2,901,279
3,995,478,273 3,995,478,273 958,638,260 (322,106,400) 4,632,010,133
400,000,000 -
(360,000,000) (20,472,803) (71,428,571) 47,064,297
2,400,000,000
72,898,928
HIMALAYAN BANK LIMITED CASH FLOW STATEMENT

FOR THE PERIOD FROM SHRAWAN 1, 2068 TO ASHAD 31, 2069 (JULY 17, 2011 TO JULY 15, 2012) Particulars A. Cash Flow from Operating Activities 1. Cash Received 1.1 Interest Income 1.2 Commission and Discount Income 1.3 Income from Foreign Exchange Transaction 1.4 Recovery of Loan Written off 1.5 Other Income 2. Cash Payment 2.1 Interest Expenses 2.2 Staff Expenses 2.3 Office Overhead Expenses 2.4 Income Tax Paid 2.5 Other Expenses Cash Flow before Changes in Working Capital (Increase) / Decrease in Current Assets 1. (Increase) / Decrease in Money at Call and Short Notice 2. (Increase) / Decrease in Other Short-term Investment 3. (Increase) / Decrease in Loan & Bills Purchases 4. (Increase) / Decrease in Others Assets Increase / (Decrease) in Current Liabilities 1. Increase/(Decrease) in Deposits 2. Increase/(Decrease) in Certificate of Deposits 3. Increase/(Decrease) in Short Term Borrowing 4. Increase/(Decrease) in Others Liabilities B. Cash Flow from Investment Activities 1. (Increase)/Decrease in Long Term Investments 2. (Increase)/Decrease in Fixed Assets 3. Interest Income from Long Term Investment 4. Dividend Income 5.Others C. Cash Flow from Financing Activities
1. Increase/(Decrease) in Long Term Borrowings ( Bond,Debentures etc)
Current Year 1,195,103,583 5,650,227,914 4,643,354,751 510,840,279 309,897,962 4,106,287 182,028,635 (4,455,124,331) (2,805,346,867) (580,346,618) (555,510,573) (390,146,907) (123,773,366) 4,311,043,125 (2,657,652,379) 469,400,000 391,220,000 (3,401,346,685) (116,925,694) 6,968,695,504 6,810,366,879 (10,000,000) 168,328,625 (1,729,279,565) (1,677,379,030) (242,472,976.00) 144,159,425 7,594,515 38,818,501 (379,222,306) (565,000) (378,657,306)
Previous Year 1,229,722,130 4,935,565,536 4,156,612,894 350,365,112 195,528,538 103,542,011 129,516,981 (3,705,843,406) (2,301,679,351) (474,458,856) (463,319,467) (390,813,004) (75,572,728) (1,767,764,421) (4,914,320,570) (425,160,000) (282,115,000) (3,846,141,395) (360,904,175) 3,146,556,149 3,309,424,756 10,000,000 (172,868,607) (138,743,550) (682,555,022) (217,817,619) 92,823,514 8,378,920 660,426,657 (225,053,522) (2,845,000) (222,208,522)
2. Increase/(Decrease) in Share Capital 3. Increase/(Decrease) in Other Liabilities 4. Increase/(Decrease) in Refinance/facilities received from NRB.
D. Income/Loss from change in exchange rate in Cash and Bank Balances
3,397,644,837 2,964,651,321 6,362,296,158
(901,839,363) 3,866,490,684 2,964,651,321
E.Current Year's Cash Flow from All Activities F. Opening Balance of Cash and Bank Balances G Closing Balance of Cash and Bank Balances
HIMALAYAN BANK LIMITED SCHEDULE TO THE FINANCIAL STATEMENTS Schedule 1: Share Capital & Ownership (Amount in Rs.) Previous Year
Particulars 1. Share Capital 1.1 Authorized Capital a. 30,000,000 Ordinary Shares of Rs 100 each. b. Non -redeemable Preference Shares c. Redeemable Preference Shares 1.2 Issued Capital a. 24,000,000 Ordinary Shares of Rs 100 each (Previous year 20,000,000 Ordinary Shares of Rs. 100 each) b. Non-redeemable Preference Shares c. Redeemable Preference Shares 1.3 Paid up Capital a. 24,000,000 Ordinary Shares of Rs 100 each fully paid up (Previous year 20,000,000 Ordinary Shares of Rs 100 each fully paid up) b. Non-redeemable Preference Shares c. Redeemable Preference Shares 1.4 Proposed Bonus Shares 1.5 Calls-in-advance 1.6 Total SHARE OWNERSHIP Particulars 1. Domestic Ownership 1.1 Nepal Government 1.2 "A" Classs Licensed Institutions 1.3 Other Licensed Institutions 1.4 Other Entities 1.5 General Public 1.6 Others 2. Foreign Ownership Total Current Year Share Capital % 80.00 1,920,000,000 65.00 1,560,000,000 15.00 360,000,000 20.00 480,000,000 100.00 2,400,000,000
Current Year
3,000,000,000 3,000,000,000 2,400,000,000 2,400,000,000 2,400,000,000 2,400,000,000 360,000,000 2,760,000,000
3,000,000,000 3,000,000,000 2,000,000,000 2,000,000,000 2,000,000,000 2,000,000,000 400,000,000 2,400,000,000
(Amount in Rs.) Previous Year Share Capital 80 1,600,000,000 65 1,300,000,000 15 300,000,000 20 400,000,000 100 2,000,000,000
Particulars of Individual/Group/Firm/Company holding 0.5% or above are as follows: (Amount in Rs.) Number of Name of Shareholder % Share Capital Shares Habib Bank Limited 4,800,000 20.00 480,000,000 Karmachari Sanchaya Kosh 3,360,000 14.00 336,000,000 N. Trading Co. Pvt. Ltd. 3,050,004 12.71 305,000,400 Mutual Trading Co. Pvt. Ltd. 3,028,800 12.62 302,880,000 Ava International Pvt. Ltd. 2,732,249 11.38 273,224,900 Chhaya International Pvt. Ltd. 2,133,209 8.89 213,320,900 Sumit Kumar Agrawal 635,843 2.65 63,584,300 Syakar Co. Ltd. 237,601 0.99 23,760,100 Sharma & Co. Pvt. Ltd. 158,400 0.66 15,840,000 Total 20,136,106 83.90 2,013,610,600
HIMALAYAN BANK LIMITED SCHEDULE TO THE FINANCIAL STATEMENTS Schedule 2: Reserves and Funds Particulars 1. General Reserve Fund 2. Capital Reserve Fund 3. Capital Redemption Reserve 4. Capital Adjustment Fund 5. Other Reserve Fund a. Contingent Reserve b. Institution Development Fund c. Dividend Equalization Fund d. Special Reserve Fund e. Assets Revaluation Reserve f. Deferred Tax Reserve g. Other Free Reserves h. Bond Redemption Reserve i. Investment Adjustment Reserve 7. Accumulated Profit / (Loss) 8. Exchange Fluctuation Fund Total Current Year 1,383,151,091 386,190,216 4,000,000 23,374,082 357,142,856 1,673,278 72,898,928 29,769,898 1,872,010,133 (Amount in Rs.) Previous Year 1,191,423,439 341,353,139 4,000,000 2,901,279 285,714,285 48,737,575 32,931,797 29,769,898 1,595,478,273
Schedule 3: Debentures and Bonds Particulars 8 Percent HBL Bond 2072 of Rs 1,000 each (Issued in Ashadh 2065 and maturing in Ashadh 2072 ) [Balance in Redemption Reserve Rs. 357,142,856 (Previous Year Rs. 285,714,285)] Total Current Year 500,000,000 (Amount in Rs.) Previous Year 500,000,000
500,000,000
500,000,000
Schedule 4: Borrowings Particulars A. Local 1. Nepal Government 2. Nepal Rastra Bank 3. Repo Obligation 4. Inter Bank and Financial Institutions 5. Other Financial Institutions 6. Others Total B. Foreign 1. Banks 2. Others Total Total ( A+B) Current Year (Amount in Rs.) Previous Year
10,000,000 10,000,000 10,000,000
HIMALAYAN BANK LIMITED SCHEDULE TO THE FINANCIAL STATEMENTS Schedule 5: Deposits Particulars 1. Non Interest Bearing accounts A. Current Deposits 1. Local Currency 1.1 Nepal Government 1.2 "A" Classs Licensed Institutions 1.3 Other Licensed Institutions 1.4 Other Organized Institutions 1.5 Individuals 1.6 Others 2. Foreign Currency 2.1 Nepal Government 2.2 "A" Classs Licensed Institutions 2.3 Other Licensed Institutions 2.4 Other Organized Institutions 2.5 Individuals 2.6 Others B. Margin Deposits 1. Employees Guarantee 2. Guarantee Margin 3. Letters of Credit Margin C. Others 1. Local Currency 1.1 Financial Institutions 1.2 Other Organized Institution 1.3 Individual 2. Foreign Currency 2.1 Financial Institutions 2.2 Other Organized Institutions 2.3 Individual Total of Non-Interest Bearing Accounts 4,584,233,497 3,593,562,442 80,628,888 70,198,211 462,973,422 1,488,063,551 1,372,546,146 119,152,224 990,671,055 16,427,770 146,961 375,402,069 234,359,533 250,108,755 114,225,967 971,296,581 464,665,721 506,630,860 5,555,530,078 3,694,249,426 2,903,865,089 83,561,854 148,514,126 349,538,845 1,420,274,274 759,629,886 142,346,104 790,384,337 80,814,018 46,993 199,831,038 223,050,691 193,308,361 93,333,236 1,219,365,273 776,901,606 442,463,667 4,913,614,699 Current Year (Amount in Rs.) Previous Year
HIMALAYAN BANK LIMITED SCHEDULE TO THE FINANCIAL STATEMENTS Particulars 2. Interest Bearing accounts A. Saving Deposits 1. Local Currency 1.1 Organized Institutions 1.2 Individuals 1.3 Others 2. Foreign Currency 2.1 Organized Institutions 2.2 Individuals 2.3 Others B. Fixed Deposits 1. Local Currency 1.1 Organized Institutions 1.2 Individuals 1.3 Others 2. Foreign Currency 2.1 Organized Institutions 2.2 Individuals 2.3 Others C. Call Deposits 1. Local Currency 1.2 "A" Classs Licensed Institutions 1.3 Other Licensed Institutions 1.4 Other Organized Institutions 1.5 Individuals 1.6 Others 2. Foreign Currency 2.1 "A" Classs Licensed Institutions 2.2 Other Licensed Institutions 2.3 Other Organized Institutions 2.4 Individuals 2.5 Others D. Certificate of Deposits 1. Other Organized Institutions 2. Individual 3. Other Total of Interest Bearing Accounts Total Deposits 21,915,374,201 21,195,019,560 459,222,302 20,735,093,723 703,535 720,354,641 8,180,762 695,680,934 16,492,945 11,866,679,120 11,091,770,888 2,929,409,169 7,971,587,544 190,774,175 774,908,232 602,499,801 153,660,931 18,747,500 8,393,410,510 7,424,530,049 536,228,864 6,612,143,773 276,157,412 968,880,461 1,711,457 961,172,252 5,996,752 42,175,463,831 47,730,993,909 15,994,563,707 15,233,399,813 288,345,837 14,944,944,112 109,864 761,163,894 14,527,644 738,419,962 8,216,288 13,507,370,421 12,501,738,459 6,291,977,069 6,059,413,840 150,347,550 1,005,631,962 736,692,559 178,305,603 90,633,800 6,505,078,203 5,160,403,047 3,128,728,079 1,924,950,838 106,724,130 1,344,675,156 3,266,551 1,100,125,234 241,283,371 36,007,012,331 40,920,627,030 Current Year (Amount in Rs.) Previous Year
HIMALAYAN BANK LIMITED SCHEDULE TO THE FINANCIAL STATEMENTS Schedule 6: Bills Payables Particulars 1. Local Currency 2. Foreign Currency Total Current Year 18,610,383 392,989 19,003,372 (Amount in Rs.) Previous Year 24,955,617 6,699,969 31,655,586
Schedule 7: Other Liabilities Particulars 1. Pension / Gratuity Fund 2. Employees Provident Fund 3. Employees Welfare Fund 4. Provision for Staff Bonus 5. Interest Payable on Deposit 6. Interest Payable on Borrowings/Bonds 7. Unearned Discount & Commission 8. Sundry Creditors 9. Branch Adjustment Account 10. Deferred Tax Liability 11. Dividend Payable 12. Others a. Provision for Audit Fee b. Provision for leave encashment c. Matured HBL Bond Payable d. Provision for Gratuity e. Interest Suspense on NBA f. Others Total Current Year 138,909,155 216,820,761 19,330,554 97,520,941 33,555,262 24,548,285 678,000 139,376,479 555,000 50,835,535 438,184,096 1,160,314,068 (Amount in Rs.) Previous Year 123,773,366 245,726,224 23,751,114 72,428,981 21,943,031 678,000 77,383,708 1,120,000 58,946,092 892,259 314,958,220 941,600,995
Schedule 8: Cash Balance Particulars 1 Local Currency (Including coins) 2. Foreign Currency Total Current Year 916,270,042 35,063,473 951,333,515 (Amount in Rs.) Previous Year 595,552,373 36,493,783 632,046,156
HIMALAYAN BANK LIMITED SCHEDULE TO THE FINANCIAL STATEMENTS Schedule 9: Balance with Nepal Rastra Bank Foreign Currency Convertible INR Currency 1. Nepal Rastra Bank 3,885,898,757 93,265,032 a. Current Account 3,885,898,757 93,265,032 b. Other Account Total 3,885,898,757 93,265,032 Note: Total balance as per the statement of Nepal Rastra Bank is Rs 4,054,877,179 Particulars Local Currency Current Year Total 93,265,032 93,265,032 93,265,032 3,979,163,789 3,979,163,789 3,979,163,789 1,390,625,787 1,390,625,787 1,390,625,787 (Amount in Rs.) Previous Year
Schedule 10: Balance with Banks / Financial Institutions Foreign Currency Convertible INR Currency 1. Local Licensed Institutions 233,356,360 997,918 a. Current Account 233,356,360 997,918 b. Other Account 2. Foreign Bank 247,898,030 949,546,546 a. Current Account 247,898,030 949,546,546 b. Other Account Total 233,356,360 247,898,030 950,544,464 Note: Total balance as per the statement received from respective bank is Rs 1,114,564,088 Particulars Local Currency Current Year Total 997,918 997,918 1,197,444,576 1,197,444,576 1,198,442,494 234,354,278 234,354,278 1,197,444,576 1,197,444,576 1,431,798,854 146,506,868 146,506,868 795,472,510 795,472,510 941,979,378 (Amount in Rs.) Previous Year
Schedule 11: Money at Call and Short Notice Particulars 1. Local Currency 2. Foreign Currency Total Current Year 264,600,000 264,600,000 (Amount in Rs.) Previous Year 200,000,000 534,000,000 734,000,000
HIMALAYAN BANK LIMITED SCHEDULE TO THE FINANCIAL STATEMENTS Schedule 12: Investments Particulars Trading 1.Nepal Government Treasury Bills 2 Nepal Government Saving Bond 3.Nepal Government Other Securities 4. NRB Bonds 5. Foreign Bonds 6. Local Licensed Institutions 7. Foreign Banks 8.Corporate Shares 9. Corporate Bonds and Debentures 10. Other Investments Total Investment Provision Net Investment Purpose Other 6,402,963,895 2,759,259,402 88,200,000 692,370,000 90,002,059 10,032,795,356 Current Year 6,402,963,895 2,759,259,402 88,200,000 692,370,000 90,002,059 10,032,795,356 1,214,859 10,031,580,497 (Amount in Rs.) Previous Year 4,725,584,865 1,681,777,676 479,420,000 1,794,368,930 90,002,059 8,771,153,530 1,214,859 8,769,938,671
Schedule 12(A): Investments in Shares, Debentures and Bonds Particulars 1. Investment in Shares Rural Microfinance Dev Centre 480,000 Shares @ Rs. 100 per share, fully paid up 1.2 Western Rural Development Bank 33,000 Shares (including 3,000 bonus shares) @ Rs. 100 per share, fully paid up 1.3 Nirdhan Utthan Bank Ltd. 215,998 Shares (including 88,065 bonus shares) @ Rs.100 per share, fully paid up 1.4 Chhimek Bikas Bank Ltd. 151,202 Shares (including 77,401 bonus shares) @ Rs. 100 per share, fully paid up 1.5 Swabalamban Bikas Bank Ltd. 150,024 Shares (including 25,119 bonus shares) @ Rs. 100 per share, fully paid up 1.6 Swift SC 6 Shares 1.7 Credit Information Corporation Limited 32,753 shares (including 18,520 bonus shares) @ Rs. 100 per share, fully paid up 1.8 Nepal Clearing House 25,000 shares @ Rs. 100 each, fully paid up 1.9 VISA Card International 5,860 nos. of Common Stock 1.10 Nepal Bankers' Training Institute (100% 0f committed equity) 2. Investment in Debentures and Bonds 2.1 .. 2.2 .. 2.3 .. Total Investment 3. Provision for Loss 3.1 Up to previous year 3.2 Addition this year Total Provision Net Investment 1.1 48,000,000 3,000,000 48,000,000 3,300,000 48,000,000 3,000,000 48,000,000 3,000,000 Cost Price Market value Provision Current Year (Amount in Rs.) Previous Year
12,793,300
30,808,384
12,793,300
12,793,300
7,380,100
35,608,228
7,380,100
7,380,100
12,490,500
35,855,736
12,490,500
12,490,500
1,214,859 1,423,300
1,214,859 2,729,400
1,214,859 -
1,214,859 1,423,300
1,214,859 1,423,300
2,500,000 1,200,000
2,500,000 1,200,000
2,500,000 1,200,000
2,500,000 1,200,000
90,002,059
161,216,607
1,214,859
90,002,059
90,002,059
1,214,859 1,214,859
1,214,859 1,214,859 88,787,200
1,214,859 1,214,859 88,787,200
Note: Shares of Chhimek Bikas Bank Limited, Nirdhan Utthan Bank Limited and Swabalamban Bikas Bank Limited are listed in Nepal Stock Exchange. Companies except RMDC, Chhimek Bikas Bank Limited, Nirdhan Utthan Bank Limited, Western Rural Development Bank, Swabalamban Bikas Bank Limited and Credit Information Corporation Limited have not declared dividend in the last three Years.
HIMALAYAN BANK LIMITED SCHEDULE TO THE FINANCIAL STATEMENTS Schedule 12.1: Held for Trading Investments Particulars 1. Nepal Government Treasury Bills 2. Nepal Government Saving Bonds 3. Nepal Government Other Securities 4. Nepal Rastra Bank Bonds 5. Foreign Bonds 6. Shares of Local Licensed Institutions 7. Debentures and Bonds of Local Licensed Institution 8. Shares, Debentures and Bonds of Local Organised Institutions 9. Placement in Foreign Banks 10. Inter Bank Lending 11. Other Investments Total Investments Cost Price Market Price As At 16-Jul-2011 15-Jul-2012 (Amount in Rs.) Profit / Loss Remarks Current Year Previous Year -
Schedule 12.2: Held to Maturity Investments Particulars 1. Nepal Government Treasury Bills 2. Nepal Government Saving Bonds 3. Nepal Government Other Securities 4. Nepal Rastra Bank Bonds 5. Foreign Bonds 6. Shares of Local Licensed Institutions 7. Debentures and Bonds of Local Licensed Institutions 8. Shares, Debentures and Bonds of Local Organised Institutions 9. Placement in Foreign Banks 10. Other Investments Total Investments Cost Price 6,402,963,895 2,759,259,402 692,370,000 88,200,000 9,942,793,297 Impaired Amount till 16-Jul-2011 15-Jul-2012 (Amount in Rs.) Profit / Loss Remarks This Year Previous Year
Schedule 12.3: Available for Sale Investments Particulars 1. Nepal Government Treasury Bills 2. Nepal Government Saving Bonds 3. Nepal Government Other Securities 4. Nepal Rastra Bank Bonds 5. Foreign Bonds 6. Shares of Local Licensed Institutions 7. Debentures and Bonds of Local Licensed Institutions 8. Shares, Debentures and Bonds of Local Organised Institutions 9. Placement in Foreign Banks 10. Other Investments Total Investments Cost Price 83,663,900 5,123,300 1,214,859 90,002,059 Market Price As At 16-Jul-2011 15-Jul-2012 This Year Investment (Amount in Rs.) Previous Remarks Year Profit/
147,932,882
153,572,348
6,429,400
6,429,400
1,214,859 155,577,141
1,214,859 161,216,607
*For the shares, which are not listed in Nepal Stock Exchange, cost of acquisition is considered as the market price.
HIMALAYAN BANK LIMITED SCHEDULE TO THE FINANCIAL STATEMENTS Schedule 13: Classification of Loans and Bills Purchased and Provisioning Particulars Domestic Priority Insured 1. Performing Loan 1.1 Pass Loan 2. Non-Performing Loan 1.2 Re-structured 2.1 Substandard 2.2 Doubtful 2.3 Loss (A) Total Loan 3. Loan Loss Provision 3.1 Pass 3.2 Re-structured 3.3 Substandard 3.4 Doubtful 3.5 Loss (B) Total Provisioning 4. Provisioning up to Previous Year 4.1 Pass 4.2 Re-structured 4.3 Substandard 4.4 Doubtful 4.5 Loss (C) Total Provison up to Last Year (D) Provision written back this year (E) This year's additional provision (F) Net adjustment during the year Net Loan (A - B) Un-insured Other 32,677,393,563 32,677,393,563 744,887,634 123,791,145 76,405,667 62,067,787 482,623,035 33,422,281,197 Foreign 854,336,163 854,336,163 6,003,863 Total 33,531,729,726 33,531,729,726 750,891,497 123,791,145 76,405,667 62,067,787 488,626,898 34,282,621,223 Local 52,006,977 52,006,977 52,006,977 Foreign 1,633,571,181 1,633,571,181 273,420 273,420 1,633,844,601 Total 1,685,578,158 1,685,578,158 273,420 273,420 1,685,851,578 35,217,307,884 35,217,307,884 751,164,917 123,791,145 76,405,667 62,067,787 488,900,318 35,968,472,801 31,576,522,315 31,576,522,315 1,391,747,983 188,464,341 216,053,013 73,457,250 913,773,379 32,968,270,298 Loans & Advances Bills Purchased & Discounted Current Year (Amount in Rs.) Previous Year
6,003,863 860,340,026
333,630,233 104,973,933 19,101,417 31,033,894 482,623,035 971,362,512
8,543,362 6,003,863 14,547,225
342,173,595 104,973,933 19,101,417 31,033,894 488,626,898 985,909,737
520,070 520,070
16,335,712 273,420 16,609,132
16,855,782 273,420 17,129,202
359,029,377 104,973,933 19,101,417 31,033,894 488,900,318 1,003,038,939
318,132,523 78,620,452 54,038,564 36,728,625 913,773,379 1,401,293,543
151,994 151,994 (151,994)
300,087,072 78,620,452 54,038,564 36,728,625 903,414,724 1,372,889,437 (832,518,120) 430,991,195 (401,526,925) 32,450,918,685
4,778,899 10,193,255 14,972,154 (10,036,055) 9,611,126 (424,929) 845,792,801
305,017,965 78,620,452 54,038,564 36,728,625 913,607,979 1,388,013,585 (842,706,169) 440,602,321 (402,103,848) 33,296,711,486
1,338,903 1,338,903 (855,544) 36,711 (818,833) 51,486,907
11,775,655 165,400 11,941,055 (2,684,058) 7,352,135 4,668,077 1,617,235,469
13,114,558 165,400 13,279,958 (3,539,602) 7,388,846 3,849,244 1,668,722,376
318,132,523 78,620,452 54,038,564 36,728,625 913,773,379 1,401,293,543 (846,245,771) 447,991,167 (398,254,604) 34,965,433,862
282,483,799 22,910,733 46,818,580 110,259,905 680,653,112 1,143,126,129 (211,970,590) 470,138,004 258,167,414 31,566,976,755
(151,994) -
Himalayan Bank Ltd
SCHEDULE TO THE FINANCIAL STATEMENTS Schedule 13 (A): Security Wise Detail of Loans, Advances and Bills Purchased Particulars (A) Secured 1. Movable / Immovable Assets 2. Guarantee of Local Licensed Institutions 3. Government Guarantee 4. Internationally Rated Bank Guarantee 5. Export Documents 6. Fixed Deposit Receipts a. Own FDR b. FDR of other Licensed Institutions 7. Nepal Government Bonds 8. Counter Guarantee 9. Personal Guarantee 10. Other Securities (B) Unsecured Total Current Year 35,968,472,801 31,990,441,432 19,800,945 1,685,851,578 333,776,606 333,419,115 357,491 240,000 1,138,151,981 10,182,327 790,027,932 35,968,472,801 (Amount in Rs.) Previous Year 32,968,270,298 26,859,693,792 21,776,749 1,311,621,402 338,302,421 337,945,105 357,316 7,823,000 888,828,914 3,459,884 3,536,764,136 32,968,270,298
HIMALAYAN BANK LIMITED SCHEDULE TO THE FINANCIAL STATEMENTS Schedule 14: Fixed Assets Particulars Building 1. At Cost a. Previous Year Balance b. Addition this year c. Revaluation / Written back this year d. This year sold e. This Year written off Total Cost (a + b + c + d + e) 2. Depreciation a. Up to previous year b. For this year c. Depreciation on revaluation/written back d. Depreciation Adjusted/Written Back Total Depreciation 3. Book Value (WDV)*(1-2) 4. Land 5. Capital Construction (WIP) 6. Leasehold Assets Total (3 + 4 + 5) 52,578,280 355,243,039 407,821,319 Vehicles 188,974,208 41,925,100 (16,625,000) 214,274,308 Assets Machinery 327,055,286 36,213,499 (117,520) 363,151,265 Office Equipment 349,747,604 107,351,448 (246,200) (1,189,782) 455,663,070 918,355,378 540,733,086 (16,988,720) (1,189,782) 1,440,909,962 808,726,968 134,348,502 (6,530,922) (18,189,170) 918,355,378 Current Year (Amount in Rs.) Previous Year
16,290,398 17,968,275 34,258,673 373,562,646
64,634,059 20,987,105 (8,289,629) 77,331,535 136,942,773
206,031,333 25,503,561 (46,596) 231,488,298 131,662,967
167,234,950 36,853,293 (918,413) 203,169,830 252,493,240
454,190,740 101,312,234 (9,254,638) 546,248,336 894,661,626 325,671,342 2,255,561 82,775,828 1,305,364,357
397,786,187 71,439,397 (15,034,844) 454,190,740 464,164,638 325,671,342 307,292,982 90,364,087 1,187,493,049
HIMALAYAN BANK LIMITED SCHEDULE TO THE FINANCIAL STATEMENTS Schedule 15: Non Banking Assets (Amount in Rs.) Name & Address of Borrower or Party Date of Assuming Non-Banking Assets 2009.07.06 2009.07.09 2010.12.09 Total amount of Non-Banking Assets Loss Provision % In Amount 100 100 100 Current Year Previous Year
Yuyutsuva Packaging Ravi International Ramesh Babu Shrestha Grand Total Opening Balance of NBA Provision Addition during the year Closing provision on NBA Net Non-banking Assets
376,000 376,000 14,106,864 (13,730,864) 376,000 -
376,000 376,000
12,940,464 790,400 376,000 14,106,864 29,905,864 (15,799,000) 14,106,864 -
HIMALAYAN BANK LIMITED SCHEDULE TO THE FINANCIAL STATEMENTS Schedule 16: Other Assets Particulars 1. Stock of Stationery 2. Income Receivable on investments 3. Accrued Interest on Loan Less : Interest Suspense Amount 4. Commission Receivable 5. Sundry Debtors 6. Staff Loan and Advances 7. Prepayments 8. Cash in Transit 9. Other Transit Items(Including Cheques) 10. Drafts Paid without Notice 11. Expenses not written off 12. Branch Adjustment Account 13. Deferred Tax Assets 14. Others a. Advance for capital works b. Advance Corporate Tax c.Others Less: Provision for possible losses Total Current Year 16,518,282 86,089,131 534,366,185 (534,366,185) 824,844,442 47,729,032 93,561,034 23,374,082 343,037,005 (Amount in Rs.) Previous Year 25,039,810 137,097,154 618,429,700 (606,810,870) 720,392,682 38,211,291 1,982,492 89,472,717 54,540,841 2,901,279 431,886,992 93,147,059 69,131,676 326,434,464 (56,826,207) 1,513,144,088
23,374,082 16,388,271 8,352,485 432,262,663 (113,966,414)
1,435,153,008
Schedule 16 (A): Other Assets (Additional Statement) Particulars 1. Accured interest on Loan 2. Drafts Paid without Notice 3. Branch Adjustment A/c 4. Agency Balance Total Upto 1 year 215,617,683 215,617,683 Current Year Above 3 Years 1 to 3 Year 69,820,410 248,928,092 69,820,410 248,928,092 (Amount in Rs.) Previous Year Total 534,366,185 534,366,185 618,429,700
618,429,700
HIMALAYAN BANK LIMITED SCHEDULE TO THE FINANCIAL STATEMENTS Schedule 17: Contingent Liabilities Particulars 1. Claims on Institutions but not accepted by bank 2. Letters of Credit (full amount) a. Less than 6 months maturity b. More than 6 months maturity 3. Rediscounted Bills 4. Unmatured Guarantees/Bonds a. Bid Bond b. Performance Bond c. Other Guarantees/ Bonds 5. Unpaid Shares in Investment 6. Forward Exchage contract liablities 7. Bills under collection 8. Acceptance and Endorsements 9. Underwriting Commitments 10. Irrevocable Loan Commitments 11. Counter Guarantee of internationally Rated Banks 12. Advance Payment Guarantee 13. Financial Guarantee 14. Contingent Liabilities on Income Tax 15. Others Total Current Year 16,888,000 3,983,149,810 3,508,113,277 475,036,533 1,773,093,643 145,162,845 1,148,990,370 478,940,428 199,188,089 2,535,509,614 727,810,764 3,374,492,606 1,598,761,643 189,911,732 38,049,568 14,436,855,469 (Amount in Rs.) Previous Year 19,686,000 3,574,914,189 2,770,868,748 804,045,441 1,618,620,141 211,570,031 912,098,556 494,951,554 821,619,502 1,643,374,408 559,358,323 3,227,315,980 1,674,338,582 267,064,419 26,879,423 13,433,170,967
HIMALAYAN BANK LIMITED SCHEDULE TO THE FINANCIAL STATEMENTS Schedule 18: Interest Income Particulars A. On Loan, Advances and Overdraft 1. Loan and Advances 2. Overdraft B. On Investment 1. Nepal Government Securities a. Treasury Bills b. Development Bonds c. National Saving Certificate 2. Foreign Securities a. . b 3. Nepal Rastra Bank Bonds 4. Debenture and Bonds 5. Interest on Inter Bank Lending A. Bank/Financial Institutions B. Other Organizations C. On Agency Balances 1. Local Banks 2. Foreign Banks D. On Money at Call and Short Notice 1. Local Banks 2. Foreign Banks E. On Others 1.Certificate of Deposits 2. Inter-Bank Loan 3. FCY Placements Total Current Year 4,216,329,884 3,050,354,021 1,165,975,863 474,916,377 474,916,377 316,117,134 158,799,243 (Amount in Rs.) Previous Year 3,843,311,617 2,767,676,307 1,075,635,310 389,103,743 389,103,743 296,280,229 92,823,514 -
264,304 16,557 247,747 2,687,033 2,676,700 10,333 30,689,725 7,464,524 23,225,201 4,724,887,323
1,521,778 1,234,228 287,550 33,980,475 33,836,267 144,208 58,222,975 18,107,016 40,115,959 4,326,140,588
HIMALAYAN BANK LIMITED SCHEDULE TO THE FINANCIAL STATEMENTS Schedule 19: Interest Expenses Particulars A. On Deposit Liabilites 1. Fixed Deposits 1.1 Local Currency 1.2 Foreign Currency 2. Saving Deposits 2.1 Local Currency 2.2 Foreign Currency 3. Call Deposit 3.1 Local Currency 3.2 Foreign Currency 4. Certificate of Deposits B. On Borrowings 1. Debentures and Bonds 2. Loan from Nepal Rastra Bank 3. Inter Bank/Financial Institutions Borrowing 4. Other Corporate Bodies 5. Other Loans C. Others Total Current Year (Amount in Rs.) Previous Year
1,403,379,243 1,381,801,794 21,577,449 869,511,260 865,461,575 4,049,685 475,771,027 463,460,302 12,310,725 67,779,874 40,000,000 27,779,874 -
1,285,319,384 1,267,468,808 17,850,576 706,968,453 702,257,792 4,710,661 355,287,262 343,623,184 11,664,078 67,232,144 40,000,000 1,632,759 25,599,385 -
2,816,441,404
2,414,807,243
Schedule 20: Commission and Discount Income Particulars A. Bills Purchased and Discounted 1. Local 2. Foreign B. Commission 1. Letters of Credit 2. Guarantees 3. Collection Fees 4. Remittance Fees 5. Credit Cards Fee 6. Share Underwriting /Issue 7. Government Trasactions 8. Agency Commissions 9. Exchange Fees C. Others Total Current Year 83,765,688 83,765,688 348,564,544 33,903,532 63,926,348 29,777,890 79,825,502 141,131,272 78,510,047 510,840,279 (Amount in Rs.) Previous Year 15,508,942 11,833,348 3,675,594 272,573,412 36,165,185 55,608,929 48,857,634 51,806,056 80,135,608 62,282,758 350,365,112
HIMALAYAN BANK LIMITED SCHEDULE TO THE FINANCIAL STATEMENTS Schedule 21: Other Operating Income Particulars 1. Safe Deposit Lockers Rental 2. Issue and Renewal of Credit Cards 3. Issue and Renewals of ATM Cards 4. Telex/ T. T 5. Service Charges 6. Renewal Fees 7. Others Total Current Year 9,373,630 58,922,399 37,004,698 12,735,858 63,992,050 182,028,635 (Amount in Rs.) Previous Year 7,516,338 51,000,532 3,406,786 13,188,803 54,404,522 129,516,981
Schedule 22: Exchange Gain / (Loss) Particulars A. Revaluation Gain/(Loss) B. Trading Gain (including exchange Fee on INR) Total Income / (Loss) Current Year (34,885,931) 344,783,893 309,897,962 (Amount in Rs.) Previous Year 26,729,284 168,799,254 195,528,538
Schedule 23: Staff Expenses Particulars 1. Salary 2. Allowances 3. Contribution to Provident Fund 4. Training Expenses 5. Uniform 6. Medical 7. Insurance 8. Pension and Gratuity 9. Others Total Current Year 237,102,991 249,892,417 20,543,676 3,659,884 5,821,870 24,406,462 50,835,535 41,965,997 634,228,832 (Amount in Rs.) Previous Year 213,045,880 166,258,076 18,114,288 3,184,322 4,934,000 24,965,352 58,946,092 28,143,817 517,591,827
HIMALAYAN BANK LIMITED SCHEDULE TO THE FINANCIAL STATEMENTS Schedule 24: Other Operating Expenses Particulars 1. Office Rent 2. Electricity & Water 3. Repairs and Maintenance a. Building b. Vehicles c. Others 4. Insurance 5. Postage Telex, Telephone, Fax 6. Office Equipment & Furniture- Repairs 7.Travelling Allowances and Expenses 8. Printing and Stationery 9. Books and Periodicals 10 Advertisements 11. Legal Expenses 12. Donations 13. Expenses Relating to Board of Directors a. Meeting Fees b. Other Expenses 14. Annual General Meeting Expenses 15. Expenses Relating to Audit a. Audit Fees b. Other Expenses 16. Commission on Remittances 17. Depreciation on Fixed Assets 18. Amortization 19. Share Issue Expenses 20 Technical Services Fee 21. Entertainment 22. Written off Expenses 23. Security Expenses 24. Credit Guarantee Premium 25. Commission and Discount 26. Others a. Registration Fee and Charges b. Card Membership and other expenses c. Committee Meeting Fees d. Fuel, Janitorial & Cleaning e. Others Total Current Year 86,576,814 15,715,979 56,928,924 381,988 1,571,735 54,975,201 23,522,615 15,736,554 445,210 30,426,379 23,343,452 938,793 43,487,984 3,126,852 285,100 5,093,413 766,800 4,326,613 779,454 1,254,977 678,000 576,977 101,312,234 56,857,366 1,438,587 756,263 22,694,928 178,990 5,734,348 217,801,220 25,007,813 135,862,786 414,200 38,814,860 17,701,561 714,436,436 (Amount in Rs.) Previous Year 79,128,303 13,716,779 43,475,099 545,732 1,499,505 41,429,862 9,581,664 14,487,594 350,204 22,319,487 17,727,809 945,067 38,417,009 31,335,112 541,026 7,300,180 885,600 6,414,580 996,167 1,022,638 678,000 344,638 71,439,397 47,195,266 1,627,333 255,683 18,883,955 2,293,195 159,170,846 22,423,656 95,864,563 812,800 26,585,557 13,484,270 582,209,813
HIMALAYAN BANK LIMITED SCHEDULE TO THE FINANCIAL STATEMENTS Schedule 25: Provision for Possible Losses Particulars 1. Increase in Loan Loss Provision 2. Increase in Provision for Loss on Investment 3. Provision against Non-Banking Assets 4. Provision against Other Assets Total Current Year 447,991,167 (Amount in Rs.) Previous Year 470,138,004 1,214,859 376,000 471,728,863
57,500,000 505,491,167
Schedule 26: Non Operating Income / (Loss) Particulars 1. Profit/(Loss) on Sale on Investment 2. Profit / (Loss) on Sale of Assets [Includes profit on sale of NBA Rs.570,433 (Previous year profit of Rs. 5,825,000)] 3. Dividend 4. Subsidies received from Nepal Rastra Bank a. Reimbursement of losses of specified branches b. interest subsidy c. Exchage counter 5. Others Total Non- Operating Income (Loss) Current Year 411,095 (Amount in Rs.) Previous Year 7,477,013
7,594,515 8,005,610
8,378,920 15,855,933
Schedule 27: Loss Provisions Written Back Particulars 1. Loan Loss Provision Written Back 2. Provision against Non-Banking Assets Written Back 3. Investment Provision Written Back 4. Provision against Other Assets Written Back Total Current Year 846,245,771 13,730,864 859,976,635 (Amount in Rs.) Previous Year 211,970,590 16,175,000 228,145,590
Schedule 28: Profit / (Loss) from Extra-ordinary Activities Particulars 1. Recovery of Writen off Loan 2. Voluntary Retirement Scheme Expenses 3. Loan Write/offs [Schedule 28 (A)] 4. Other Expenses/Income Total Current Year 4,106,287 (401,144,182) (397,037,895) (Amount in Rs.) Previous Year 103,918,011 (1,625,986) 102,292,025
HIMALAYAN BANK LIMITED SCHEDULE TO THE FINANCIAL STATEMENTS Schedule 28 (A): Statement of Loans Written-off S. N. 1 Type of Loan Overdrafts Security Detail Amount Written off 46,144,345 Mortgage of land & building,
hypothecation of machinery and stock duly insured in favour of bank. Basis of valuation 70% of Market value and 30% of Government value
Approving authority
EC/BOD
Recovery steps taken

Served various follow-up letters, 35 days notice published in newspaper. Borrowers & Personal Guarantors have been blacklisted.
(Amount in Rs.) Remarks
Demand Loan
246,501,339 Mortgage of land & building,

hypothecation of stocks duly insured in favour of bank.
70% of Market value and 30% of Government value
DGM/GM/EC/BOD Served various follow-up letters, 35 days notice published in newspaper. Borrowers & Personal Guarantors have been blacklisted.
Structured Loan

DGM/GM/EC/BOD Served various follow-up letters, 35 days notice published in newspaper. Borrowers & Personal Guarantors have been blacklisted.
Pre export loan

BM
Served various follow-up letters, 35 days notice published in newspaper. Auction and re-auction notice were published in newspaper. Case filed in DRT
Hire Purchase
935,840 Registrationof vehilce in Bank's Purchase price / invoice of the vehicle

name
GM/SGM
Served various follow-up letters, 35 days notice published in newspaper. Borrowers & Personal Guarantors have been blacklisted.
Fixed / Mid Term Loan

EC/BOD
Served various follow-up letters, 35 days notice published in newspaper. Promoters of the borrower and PG holders have been blacklisted.
Trust Receipt Loan

EC/BOD
Bills Under L/C - Import
35,816,570 Mortgage of land, building,

machinery and hypothecation of stock
N/A
EC/BOD
Cheque purchased
395,109
N/A
N/A
GM
Served various follow-up letters, 35 days notice published in newspaper. Borrowers have been blacklisted.
10 Credit Card Loan
2,801,815
Personal guarantee of cardholders
NA
BM/DGM/CEO
Follow-up through telephonic calls and written notices served to the card holder. 35 days notice published in newspaper along with the photographs. Cardholders have been blacklisted.
Total Loan
401,144,182
HIMALAYAN BANK LIMITED SCHEDULE TO THE FINANCIAL STATEMENTS Schedule 29 : Statement of Loans & Advances given to Directors / CEO / Promoters / Employees and Shareholders Out of toal Bills Purchased and Discounted, Loans, Advances and Overdraft, amount provided to the Directors, Chief Executive, Promoters Employees, Shareholders and to 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: Name of Promoters / Directors /Chief Executive (A) Directors 1. .. 2. .. 3. .. (B) Chief Executives 1. .. 2. .. 3. .. (C) Promoters 1. .. 2. .. 3. .. (D) Employees 1. .. 2. .. 3. .. (E) Shareholders 1. .. 2. .. 3. .. Total Previous Years's Balance Principal Interest This Year Recovery Principal Interest This Year Additions Balance as of Ashad 32, 2068 Principal Interest -
Note: The Bank has various Staff Loan Schemes and the loans availed under such schemes by the Staffs are included under "Schedule 16 - Other Assets"
HIMALAYAN BANK LIMITED AS AT Ashad 31, 2069 (July 15, 2012) Schedule 30(A1): Table of Capital Fund 1.1 RISK WEIGHTED EXPOSURES a Risk Weighted Exposure for Credit Risk b Risk Weighted Exposure for Operational Risk c Risk Weighted Exposure for Market Risk Adjustment under Pillar II Add 2% of gross income for operational risk Add: 2% of total RWE for overalll risk Total Risk Weighted Exposures (a+b+c) 1.2 CAPITAL Core Capital (Tier I) a Paid up Equity Share Capital b Irredeemable Non-cumulative preference shares c Share Premium d Proposed Bonus Equity Shares e Statutory General Reserves f Retained Earnings g Current year profit/(loss) h Capital Redemption Reserve i Capital Adjustment Reserve j Dividend Equalization Reserves k Debenture Redemption Reserve l Special Reserve m Deferred Tax Reserve n Less: Goodwill o Less: Miscellaneous Expenditure not written off p Less: Investment in equity in licensed Financial Institutions q Less: Investment in equity of institutions with financial interests 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 Adjustment under Pillar II Less shortfall in Provision Less loans and facilities extended to related parties and restricted lending Supplementary Capital (Tier II) a Cumulative and/or Redeemable Preference Share b Subordinated Term Debt c Hybrid Capital Instruments d General loan loss provision e Exchange Equalization Reserve f Investment Adjustment Reserve g Assets Revaluation Reserve h Other Reserves Total Capital Fund (Tier I and Tier II) 1.3 CAPITAL ADEQUACY RATIOS Tier 1 Capital to Total Risk Weighted Exposures Tier 1 and Tier 2 Capital to Total Risk Weighted Exposures Current Year 42,584,895,177 3,496,411,930 250,523,459 676,431,429 926,636,611 47,934,898,606 (Amount in Rs.) Previous Year 39,545,254,061 2,953,963,235 185,012,202 586,607,505 853,684,590 44,124,521,593
4,600,146,030 2,400,000,000 360,000,000 1,383,151,091 72,898,928 357,142,856 4,000,000 23,374,082 420,927 -
3,916,970,800 2,000,000,000 400,000,000 1,191,423,439 32,931,797 285,714,285 4,000,000 2,901,279 -
683,754,044 300,000,000 352,310,868 29,769,898 1,673,278 5,283,900,074
794,272,695 400,000,000 315,765,222 29,769,898 48,737,575 4,711,243,495
9.60 11.02
8.88 10.68
HIMALAYAN BANK LIMITED AS AT Ashad 31, 2069 (July 15, 2012) Schedule 30(B): RISK WEIGHTED EXPOSURE FOR CREDIT RISK Book Value a 951,333,515 3,979,163,789 6,440,634,695 255,195,221 -
Specific Provision b -
Eligible CRM c -
Net Value d=a-b-c 951,333,515 3,979,163,789 6,440,634,695 255,195,221 -
Risk Weight e 0% 0% 0% 0% 0% 0% 0% 0% 50% 100% 150%
Cash Balance Balance With Nepal Rastra Bank Investment in Nepalese Government Securities All Claims on Government of Nepal Investment in Nepal Rastra Bank securities All claims on Nepal Rastra Bank Claims on Foreign Government and Central Bank (ECA 0-1) Claims on Foreign Government and Central Bank (ECA -2) Claims on Foreign Government and Central Bank (ECA -3) Claims on Foreign Government and Central Bank (ECA-4-6) Claims on Foreign Government and Central Bank (ECA -7) Claims On BIS, IMF, ECB, EC and on Multilateral Development Banks (MDB's) recognized by the framework Claims on Other Multilateral Development Banks Claims on Public Sector Entity (ECA 0-1) Claims on Public Sector Entity (ECA 2) Claims on Public Sector Entity (ECA 3-6) Claims on Public Sector Entity (ECA 7) Claims on domestic banks that meet capital adequacy requirements Claims on domestic banks that do not meet capital adequacy requirements Claims on foreign bank (ECA Rating 0-1) Claims on foreign bank (ECA Rating 2) Claims on foreign bank (ECA Rating 3-6) Claims on foreign bank (ECA Rating 7) Claims on foreign bank incorporated in SAARC region operating with a buffer of 1% above their respective regulatory capital requirement Claims on Domestic Corporates Claims on Foreign Corporates (ECA 0-1) Claims on Foreign Corporates (ECA 2) Claims on Foreign Corporates (ECA 3-6)
Risk Weighted Exposures f=d*e -
Previous Year -
546,662,820 224,841,316 97,712,963 1,647,343,052 5,045,627 15,892,874 -
139,749,272 -
406,913,548 224,841,316 97,712,963 1,647,343,052 5,045,627 15,892,874 -
0% 100% 20% 50% 100% 150% 20% 100% 20% 50% 100% 150%
610,370,322 44,968,263 97,712,963 329,468,610 2,522,814 15,892,874 -
835,905,280 147,198,377 89,934,985 213,402,325 5,446,389 28,952,453 -
500,268,835 21,915,631,492 -
223,019,736 -
500,268,835 21,692,611,756 -
20% 100% 20% 50% 100%
100,053,767 21,692,611,756 -
407,089,734 20,062,416,439 -
HIMALAYAN BANK LIMITED AS AT Ashad 31, 2069 (July 15, 2012) Schedule 30(B): RISK WEIGHTED EXPOSURE FOR CREDIT RISK Claims on Foreign Corporates (ECA 7) Regulatory Retail Portfolio (Not Overdue) 3,970,600,263 Claims fulfilling all criterion of regulatory retail except granularity Claims secured by residential properties 1,829,503,515 Claims not fully secured by residential properties Claims secured by residential properties (Overdue) 48,312,200 Claims secured by Commercial real estate 1,394,879,390 Past due claims (except for claim secured by residential properties) 1,214,201,773 High Risk claims 4,793,486,129 Investments in equity and other capital instruments of institutions listed in the stock exchange 32,663,900 Investments in equity and other capital instruments of institutions not listed in the stock exchange 57,338,159 Other Assets 4,147,923,993 54,068,635,522 TOTAL B. Off Balance Sheet Exposures Book Value a Revocable Commitments Bills Under Collection Forward Exchange Contract Liabilities LC Commitments With Original Maturity Upto 6 months domestic counterparty foreign counterparty (ECA Rating 0-1) foreign counterparty (ECA Rating 2) foreign counterparty (ECA Rating 3-6) foreign counterparty (ECA Rating 7) LC Commitments With Original Maturity Over 6 months domestic counterparty foreign counterparty (ECA Rating 0-1) foreign counterparty (ECA Rating 2) foreign counterparty (ECA Rating 3-6) foreign counterparty (ECA Rating 7) Bid Bond, Performance Bond and Counter guarantee domestic counterparty foreign counterparty (ECA Rating 0-1) 2,535,509,614 199,188,089
390,249 1,766,163 9,898,690 2,761,985 614,720,913 21,190,071
169,047,460 14,451,796
3,801,162,553 1,827,737,352 38,413,510 1,392,117,405 599,480,860 4,757,844,262
150% 75% 100% 60% 150% 100% 100% 150% 150%
2,850,871,915 1,096,642,411 38,413,510 1,392,117,405 899,221,290 7,136,766,393
2,095,359,286 782,840,169 28,814,365 1,459,308,535 626,843,957 6,705,177,997
32,663,900
100%
32,663,900
32,663,900
1,214,859 1,605,046,410 2,256,989,340 Specific Provision b -
546,268,264 Eligible CRM c -
56,123,300 2,542,877,584 51,265,377,918 Net Value d=a-b-c 2,535,509,614 199,188,089
150% 100%
84,184,950 2,542,877,584 38,967,360,727 Risk Weighted Exposures f=d*e 19,918,809
86,007,239 2,420,300,313 36,027,661,743
Risk Weight e 0% 0% 10%
Previous Year 82,161,950
3,508,113,277 -
251,794,102 -
3,256,319,175 -
20% 20% 50% 100% 150%
651,263,835 -
487,631,473 -
475,036,533 1,773,093,643 164,423,618
324,110,869 140,478,059 131,538,894
150,925,664 1,632,615,584 32,884,724
50% 20% 50% 100% 150% 50% 20%
75,462,832 816,307,792 6,576,945
360,847,363 744,539,050 22,173,212
HIMALAYAN BANK LIMITED AS AT Ashad 31, 2069 (July 15, 2012) Schedule 30(B): RISK WEIGHTED EXPOSURE FOR CREDIT RISK foreign counterparty (ECA Rating 2) 1,232,576,146 foreign counterparty (ECA Rating 3-6) 42,336,000 foreign counterparty (ECA Rating 7) Underwriting commitments Lending of Bank's Securities or Posting of Securities as collateral Repurchase Agreements, Assets sale with recourse Advance Payment Guarantee 189,911,732 Financial Guarantee Acceptances and Endorsements 727,810,764 Unpaid portion of Partly paid shares and Securities Irrevocable Credit commitments (short term) 3,294,387,427 Irrevocable Credit commitments (long term) 80,105,179 Claims on foreign bank incorporated in SAARC region operating with a buffer of 1% above their respective regulatory capital requirement Other Contingent Liabilities Unpaid guarantee claims TOTAL Total RWE for credit Risk (A) +(B Adjustment under Pillar II Add:10% of the loan and facilities in excess of Single Obligor Limits Add:1% of the contract(sale) value in case of the sale of credit with recourse Total RWE for credit Risk (A) +(B)+'(C) 159,425,880 38,049,568 16,888,000 14,436,855,469 68,505,490,991 2,256,989,340 3,649,094 1,483,400,017 2,029,668,281 159,425,880 38,049,568 13,238,906 12,953,455,452 64,218,833,370 20% 100% 200% 31,885,176 38,049,568 26,477,812 3,617,534,449 42,584,895,177 26,879,423 31,649,812 3,517,592,318 39,545,254,061
616,288,073 15,540,927 -
616,288,073 42,336,000 174,370,805 727,810,764 3,294,387,427 80,105,179
50% 100% 150% 50% 100% 100% 100% 100% 100% 100% 20% 50%
308,144,036 42,336,000 174,370,805 727,810,764 658,877,485 40,052,590
268,875,645 44,238,222 243,774,649 559,358,323 645,463,196 -
68,505,490,991
2,256,989,340
2,029,668,281
64,218,833,370
42,584,895,177
39,545,254,061
HIMALAYAN BANK LIMITED AS AT Ashad 31, 2069 (July 15, 2012) Schedule 30( C ): ELIGIBLE CREDIT RISK MITIGANTS Credit exposures A. Balance Sheet Exposures Public Sector Enterprises Claims on Domestic Corporates Regulatory Retail Portfolio (Not Overdue) Claims fulfilling all criterion of regulatory retail except granularity Claims secured by residential properties Claims not fully secured by residential properties Claims secured by residential properties (Overdue) Claims secured by Commercial real estate Past due claims (except for claim secured by residential properties) High Risk claims Total B. Off Balance Sheet Exposures Forward Exchange Contract Liabilities LC Commitments With Original Maturity Upto 6 months domestic counterparty foreign counterparty (ECA Rating 0-1) foreign counterparty (ECA Rating 2) foreign counterparty (ECA Rating 3-6) foreign counterparty (ECA Rating 7) LC Commitments With Original Maturity Over 6 months domestic counterparty foreign counterparty (ECA Rating 0-1) foreign counterparty (ECA Rating 2) foreign counterparty (ECA Rating 3-6) foreign counterparty (ECA Rating 7) Bid Bond, Performance Bond and Counter guarantee domestic counterparty foreign counterparty (ECA Rating 0-1) foreign counterparty (ECA Rating 2) foreign counterparty (ECA Rating 3-6) foreign counterparty (ECA Rating 7) Underwriting commitments Lending of Bank's Securities or Posting of Securities as collateral Repurchase Agreements, Assets sale with recourse Advance Payment Guarantee Financial Guarantee Deposits with Bank (a) 139,749,272 202,505,109 168,127,460 14,451,796 524,833,637 Deposits with other banks/FI (b) 470,000 470,000 Gold Govt.& NRB Securities (d) 12,149,995 450,000 12,599,995 G'tee of Sec/G'tee of Govt. of Other Nepal Sovereigns (e) (f) G'tee of domestic banks (g) G'tee of MDBs (h) Sec/G'tee of Foreign Banks (i) 8,364,632 8,364,632 Total
(c) -
139,749,272 223,019,736 169,047,460 14,451,796 546,268,264
251,794,102 324,110,869 140,478,059 15,540,927 -
131,538,894 616,288,073 -
251,794,102 324,110,869 140,478,059 131,538,894 616,288,073 15,540,927 -
Acceptances and Endorsements Unpaid portion of Partly paid shares and Securities Claims on foreign bank incorporated in SAARC region operating Irrevocable Credit commitments Claims on Guarantee Other Contingent Liabilities Total
3,649,094 735,573,050
3,649,094 747,826,967 1,483,400,017 Total (a+b) 2,029,668,281
HIMALAYAN BANK LIMITED AS AT Ashad 31, 2069 (July 15, 2012) Schedule 30(D): RISK WEIGHTED EXPOSURE FOR OPERATIONAL RISK Particulars Net Interest Income Commission and Discount Income Other Operating Income Exchange Fluctutation Income Additional/Deduction in Interest Suspense during the period Gross Income (a) Alfa (b) Fixed percentage of Gross Income [c=(a*b)] Capital Requirement for operational risk (d) (average of c) Risk Weight (reciprocal of capital requirement of 10% times) (e) Equivalent Risk Weight Exposure [f=(d*e)] ASHAD 2065/66 1,407,420,164 284,302,277 46,342,872 249,982,606 30,010,191 2,018,058,110 0.15 302,708,717 349,641,193 10 3,496,411,930 Ashad 2066/67 1,595,074,509 270,258,732 112,346,425 180,278,743 123,497,130 2,281,455,539 0.15 342,218,331 Ashad 2067/68 1,911,333,345 350,365,112 129,516,981 195,528,538 106,566,235 2,693,310,211 0.15 403,996,532 295,396,323 10 2,953,963,235 Previous Year
HIMALAYAN BANK LIMITED AS AT Ashad 31, 2069 (July 15, 2012) Schedule 30(E): RISK WEIGHTED EXPOSURE FOR MARKET RISK S.No. Currency Open Position (FCY) Mid Rate Open Position (NPR) Relevant Open Position 644,236 3,066,752 2,644,004 3,297,240 201,959 47,044 3,341,928 8,546,169 1,520,019 302,712,129 4,513,740 234,118 1,371,931 166,279 687,798 867 4,422,108 12,170 163,616,430 501,046,918 5% 25,052,346 10 250,523,459 Previous Year Relevant Open Position 470,426 7,968,018 3,844,863 1,969,249 111,185 12,397 4,908,333 212,952 1,256,944 197,706,902 15,654,584 91,418 420,015 410,954 874,226 36,080 2,448,002 54,395 131,573,460 370,024,403 5% 18,501,220 10 185,012,202
24.85 (644,236) 1 AED (25,925.00) 2 AUD (33,995.70) 90.21 (3,066,752) 3 CAD (30,432.83) 86.88 (2,644,004) 4 CHF (36,707.37) 89.83 (3,297,240) 5 CNY (14,603.00) 13.83 (201,959) 6 DKK (3,250.00) 14.48 (47,044) 7 EUR (30,916.58) 108.10 (3,341,928) 8 GBP (62,187.88) 137.43 (8,546,169) 9 HKD (134,217.99) 11.33 (1,520,019) 10 INR (189,106,436.92) 1.60 (302,712,129) 11 JPY (4,057,294.00) 1.11 (4,513,740) 12 MYR (8,501.00) 27.54 (234,118) 13 NOK (94,844.85) 14.47 (1,371,931) 14 QAR (6,911.00) 24.06 (166,279) 15 SAR (29,456.00) 23.35 (687,798) 16 SEK (70.00) 12.38 (867) 17 SGD (63,458.53) 69.69 (4,422,108) 18 THB (4,370.00) 2.79 (12,170) 19 USD (1,855,061.56) 88.20 (163,616,430) Total Open Position (a) Fixed Percentage (b) Capital Charge for Market Risk [c=(ab)] Risk Weight (reciprocal of capital requirement of 10%) times (d) Equivalent Risk Weight Exposure [e=(cd)]
Schedule 31 : Principal Indicators for Last Five Years
Particulars
Unit
FY 2007/2008 2064/2065
FY 2008/2009 2065/2066
FY 2009/2010 2066/2067
FY 2010/2011 2067/2068
FY 2011/2012 2068/2069
Net Profit/Total Income Per Share Income Per Share Market Value Price Earning Ratio Dividend on Share Capital (Including Bonus) Cash Dividend on Share Capital Interest Income/Loan and Advances Staff Expenses/Total Operating Expenses Interest Expenses on Total Deposit FX Fluctuation Gain/Total Income Staff Bonus/Total Staff Expenses Net Profit/Loan and Advances Net Profit/Total Assets Total Loan/Deposits Total Operating Expenses/Total Income Capital Adequacy Ratio: A. Core Capital B. Supplementary Capital C. Total Capital Fund Liquidity ( CRR ) Non-performing Loan/Total Loan Weighted Average Interest Rate Spread Book Networth per share Total Share Total Staff
Percent Rs. Rs. Ratio Percent Percent Percent Percent Percent Percent Percent Percent Ratio Percent Percent
41.58 62.74 1980 31.56 45.00 25.00 9.73 45.91 2.59 8.27 24.51 3.26 1.76 63.37 29.14
39.96 61.90 1760 28.43 43.56 12.00 9.18 47.54 2.70 8.51 22.81 3.04 1.91 73.58 29.49
22.13 31.80 816 25.66 36.84 11.84 10.81 46.83 4.13 4.80 15.41 1.82 1.19 77.43 25.60
25.46 44.66 575 12.88 36.84 16.84 13.12 47.06 5.90 3.66 19.30 2.83 1.91 80.57 22.88
24.65 39.94 653 16.35 28.42 13.42 13.14 47.03 5.90 5.00 17.97 2.74 1.76 75.36 24.00
Percent Percent Percent Percent Percent Percent Rs. Number Number
9.36 3.06 12.42 5.13 2.36 3.66 247.95 10,135,125 591
8.81 2.21 11.02 6.76 2.16 3.66 25652 12,162,150 591
8.68 2.04 10.72 6.76 3.52 4.21 226.79 16,000,000 577
8.88 1.80 10.68 5.75 4.22 3.96 199.77 20,000,000 647
9.60 1.43 11.02 8.72 2.09 4.25 193.00 24,000,000 793

Schedule 32: Significant Accounting Policies
1. General Information Himalayan Bank Limited (the Bank) is a public limited liability company domiciled in Nepal, with its registered office as G.P.O. Box No. 20590, Karmachari Sanchaya Kosh Building, Thamel, Kathmandu, Nepal. The Bank is a Joint-venture of Habib Bank Limited, Pakistan & is licensed by Nepal Rastra Bank, the central bank of Nepal, to carry out commercial banking activities in Nepal as class A financial institution under the Bank and Financial Institution Act, 2063. The Bank is listed in Nepal Stock Exchange Limited. 2. Summary of Significant Accounting Policies The significant accounting policies applied in the preparation & presentation of the financial statements of the Bank are stated herein below. The said policies have been consistently applied to all the years presented, unless stated otherwise. 2.1. Statement of Compliance The financial statements have been prepared in accordance with Nepal Accounting Standards (NAS) except as otherwise stated; generally accepted accounting principles; Banks and Financial Institutions Act, 2063; directives issued by Nepal Rastra Bank and the Company Act, 2063. 2.2. Basis of preparation The financial statements have been prepared under the historical cost convention. The preparation of the financial statements in conformity with NAS and generally accepted accounting principles requires the use of certain critical accounting estimates as well as managements judgement & discretion in the process of applying the Banks accounting policies. 2.3. Interest Income Interest income on loans and advances is recognised on cash basis as per the directives issued by Nepal Rastra Bank, which however is not in conformity with Nepal Accounting Standards that requires income recognition on accrual basis. Interest income on Investments, however, is recognized on accrual basis. 2.4. Fees and Commission Income Commission and fee income on bills purchased and discounted, guarantees and documentary credit are booked at the time of transaction. 2.5. Dividend Income Dividend income (net of withholding tax) is accounted for as and when right to receive is established. 2.6. Foreign Exchange Transactions Foreign currency assets and liabilities are translated into local currency at mid exchange rate prevailing on the Balance Sheet date. Net differences arising from such conversion
is accounted for as Revaluation gain/(Loss). As required by NRB Directives, 25% of such revaluation gain during the accounting year is transferred to Exchange Fluctuation Reserve by charging to Profit and Loss Appropriation Account. Income/(expenses) arising due to the differences between buying and selling rates of foreign currencies are accounted for as trading gain/(loss). 2.7. Recovery from written-off Loans Recovery from written-off loans is recognised as income when the amount is actually received from borrowers. All transaction costs viz., legal costs, commission fee etc. incurred for the recovery of written-off loans are included in Schedule 24 (Legal Expenses) of the financial statements. 2.8. Interest Expenses Interest expenses on deposit liabilities & borrowings from other banks are accounted for on accrual basis. 2.9. Loans and Advances, Overdraft and Bills Purchased Loans and advances, overdrafts and bills purchased represent direct financing provided to the customers & include all long / short term loans, consumer loans, credit card facilities & loans given to the deprived sector. Such loans are subject to regular review and are classified as per the directives issued by Nepal Rastra Bank. Loans and advances including bills purchased are shown net of loan loss provision. 2.10. Staff Loans Loans and advances provided to staff in accordance with the Banks policies are shown under Other Assets. In addition to this, directors & staffs of the bank are provided with credit card facility under approved policy of the bank. 2.11. Loan Loss Provision Provision for possible losses on loans and advances & bills purchased is provided at 0.25% to 100% on the basis of assets classification in accordance with NRB Directives. Additional provision over the prescribed requirement is provided at the discretion of the management on prudent basis. 2.12. Loans & Advances Write off Loans and advances classified as loss loan for at least a year and deemed irrecoverable are written off in accordance with the by-laws of the Bank duly approved by Nepal Rastra Bank. Amounts recovered against loans written off in earlier years are recognized as income in the profit and loss account in the year of recovery. 2.13. Investments The investments held by the Bank comprise of the following three categories as per NRB Directives:
a) Held For Trading: These investments are held primarily with an intention of resale over a short period of time. Any gain or loss arising from trading / revaluation are recognised in Profit and Loss Account. b) Held Till Maturity: These investments are purchased with positive intent and ability to hold till maturity and are recorded at cost or at cost adjusted for amortisation of premiums or discounts. Premiums paid on acquiring these investments are subsequently amortized as reversal of interest income on proportionate basis till the maturity date. Any impairment losses arising in such investments are provisioned and charged in the Profit or Loss Account.
c) Available for Sale: These are investments not falling under Held for Trading or Held
Till Maturity and are marked to market on regular basis. The investments classified under this category but not listed in the stock exchange, are carried at cost at the Balance Sheet. Amount equivalent to at least 2% of this portfolio is earmarked as Investment Adjustment Reserve from the Retained Earnings in line with NRB Directives. 2.14. Fixed Assets and Depreciation a. Fixed assets are stated at historical cost less depreciation. Historical cost includes expenditure that are directly attributable to the acquisition of the assets. b. Non-consumable items normally having useful life of less than one year and / or costing less than Rs.5,000 are expensed off in the year of purchase. c. Fixed assets other than freehold land are depreciated on diminishing balance method at the following rates:
S.N. 1. 2. 3. 4. 5. 6. 7.
Nature of Assets Building Vehicles Furniture-Wood Furniture-Steel Office Equipment Computers Generators
Rates 5% 15% 15% 10% 15% 20% 15%
Depreciation on assets acquired during the accounting year is charged from the month subsequent to the date of acquisition, whereas depreciation on assets disposed off during the year is charged up to the month prior to disposal. Depreciation for Income Tax purpose is calculated at the rates and manners prescribed by the Income Tax Act, 2058. 2.15. Amortization Software applications purchased by the Bank are amortized over a period of 5 years from the month of purchase. Licence fees paid by the Bank are amortized over the period of the licence. Leasehold improvements are amortized in equal annual instalments over the period of lease. 2.16. Lease Rental
All leases entered into by the Bank are operating leases. Total payments made under operating leases are charged to profit and loss account as Other Operating Expenses on monthly basis. 2.17. Retirement Benefits The Bank has provision of Gratuity and Provident Fund as retirement benefits to the employees. Expenses on account of Gratuity and Provident Fund are recognised on accrual basis with contributions made in accordance with the provisions of the Banks Staff Service By-Laws. Such contributions are transferred to the Approved Retirement Fund (an entity independent of the Bank) on regular basis as per the rules and regulations of the said Retirement Fund.
2.18.
Staff Leave Encashment Provision Accumulated staff leave liability is accounted for on accrual basis. Leave balance in excess of 120 days of annual leave as well as sick leave as on mid April is encashed each year as per the amendment in the Staff Service By-Laws.
2.19.
Employees Housing Scheme In view of provision of housing loan facilities to its employees, Bank does not make provision for Employees Housing Fund as required under the Labour Act, 2048.
2.20.
Income and Deferred Taxes a. Corporate Tax: Corporate Income Tax liability has been calculated as per the provisions of Income-Tax Act, 2058. b. Deferred Tax: Deferred tax is provided on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred income tax is determined using tax rates that have been enacted by the balance sheet date and are expected to apply when the related deferred income tax asset is realized or the deferred income tax liability is settled. Deferred tax liabilities are recognized where the carrying amount of the assets exceeds its tax base so that taxable economic benefits arising in future will exceed the amount that will be allowed as deduction for tax purposes. Deferred tax reserve is earmarked to the extent of outstanding balance of Deferred Tax Assets as per NRB guidelines.
2.21.
Non- Banking Assets Non-Banking Assets are the assets obtained as security for loans & advances subsequently taken over by the Bank in the course of loan recovery. Such assets are valued at fair market value (Panchakrit Mulya) or total amount due from the borrower, whichever is lower as per NRB directives. Provision for possible losses on non banking assets is made as per the directives of Nepal Rastra Bank.
HIMALAYAN BANK LTD Schedule 33: Notes to Accounts

For the Financial Year July 17, 2011 to July 15, 2012 (Shrawan 01, 2068 to Ashadh 31, 2069) 1. Status of Bank Reconciliation With Nepal Rastra Bank (In Rs.)
PARTICULARS Up to 1 months 1 to 3 months 3 to 6 months 6 to 12 months 1 to 2 years above 2 years Total LEDGER DEBIT 472,273,056 26,000 3,027,500 365,213 90,900 475,782,669 LEDGER CREDIT 379,933,456 4,830,102 1,855,600 3,093,517 2,648,213 1,017,935 393,378,823 STATEMENT DEBIT 34,123,468 607,110 2,112,100 1,040,118 168,790 634,461 38,686,047 STATEMENT CREDIT 170,579,447 5,599,493 44,630 18,830,781 1,464,525 284,408 196,803,284
With Other Authorized Local Financial Institutions
(In Rs.)
PARTICULARS Up to 1 months 1 to 3 months 3 to 6 months 6 to 12 months 1 to 2 years above 2 years Total
LEDGER DEBIT 1,615,423 20,738 300,000 127,960 2,064,121
LEDGER CREDIT 3,917,515 142,743 90 82,143 217,845 4,360,336
STATEMENT DEBIT 1,211 142,543 100 700 239,232 383,786
STATEMENT CREDIT 3,347,714 97,968 2,943 102,605 1,516 3,552,746
With Foreign Banks

PARTICULARS Up to 1 months 1 to 3 months 3 to 6 months 6 to 12 months 1 to 2 years above 2 years Total LEDGER DEBIT 468,868,026 28,886,784 532,857 171,806 1,523,987 4,160,146 504,143,606 LEDGER CREDIT 139,150,544 26,630,773 3,507,547 1,541,656 5,592,770 894,492 177,317,782 STATEMENT DEBIT 313,638,593 5,419,426 4,320,763 1,138,772 2,017,399 509,649 327,044,602
(In Rs.)
STATEMENT CREDIT 201,781,876 84,621,572 1,601,835 2,854,108 33,022,173 7,288,923 331,170,487
A sum of Rs.33,555,262 (Credit Balance) is outstanding in Inter Branch Account. Major part of these pending entries pertain to payments made by branches through Head Office, inter-branch transfers etc. 2. Amortization of expenses not written off Expenses incurred by way of construction and other improvements on the leased banking premises are capitalized as Leasehold Improvements. The Bank has adopted the policy of amortizing the same on a yearly basis in equal instalments over the lease period.
Accordingly, Rs. 22,719,982 has been amortized during the year, leaving a balance of Rs. 82,775,828 for future amortization (Previous year amortized Rs.22,407,942 and balance Rs.90,364,087). The computer software has been capitalized as Deferred Revenue Expenditure for amortization within five years effective from the date of commencement of operation and from the date of purchase including any subsequent purchase. Accordingly, a sum of Rs. 33,967,590 has been amortized during the year, leaving a balance of Rs. 93,140,107 for future amortization (Previous year amortized Rs.24,694,607 and balance Rs. 89,351,717). Expenses incurred on office furnishing are capitalized as deferred revenue expenditure for amortization in three years effective from the date of purchase. Accordingly, a sum of Rs. 169,793 has been amortized during the year under review, leaving a balance of Rs. 420,927 (Previous year amortized Rs 92,717 and balance Rs 120,999)
3. Summary of Loans and Advances Particulars Loan & Advances outstanding as at the year end Loan Written-off during the year 2010-11 32,968,270 1,625 Rs. in '000 2011-12 Change 35,968,473 401,144 3,000,203 399,519
4. Summary of Changes in Deposit Liabilities Particulars Interest Free Deposits Interest Bearing Deposits Total 2010-11 4,913,615 36,007,012 40,920,627 Rs. in '000 Change % 2011-12 5,555,530 13.06 42,175,464 47,730,994 17.13 16.64
5. Weighted Average Interest Rate Spread Particulars Weighted Average Interest Rate on Loans and Investments Weighted Average Interest Rate on Deposits, Bonds and Borrowing Net Spread 6. Details of Deferred Expenses Figure in Rs Particulars 1. At Cost a) Upto Last Year b) Addition this year c) Deduction this year 2. Amortization 3. Remaining Value 2010-11 223,957,067 173,239,756 50,717,311 134,484,350 89,472,717 2011-12 262,245,692 223,957,067 38,288,625 168,684,658 93,561,034 Rate % 11.18 6.94 4.25
7. Summary of Concentration of Exposure Figures in Rs.000 Particulars Total Amount as on 15 July 2012 Highest Exposure to single unit Highest % of exposure to single unit Loan and Advances 35,968,473 743,597 2.07 Contingent 8,471,916 352,310 4.16
8. Classification of Assets and Liabilities based on Maturity Figures in Rs. 000

Particulars
Assets Cash Balance Balance with Banks Money at Call Treasury Bills Govt. Bonds Other Investments Loans & Advances /Bills purchase Fixed Assets Other Assets Total Assets (A) Liabilities Borrowings Current Deposits Call Deposits Saving Deposits Fixed Deposits Margin Deposits Bills Payable Bonds Share Capital & Reserves Other Liabilities Total Liabilities (B) Net Financial Assets (A-B) Cumulative Net Financial Assets
Up to 90 Days 951,334 2,812,670 264,600 1,485,756 220,500 14,541,123 225,470 20,501,453
91 to 180 181 to 270 271 to 365 Above 1 Yr. Days Days Days 2,496,866 295,470 4,545,127 72,139 7,409,602 589,238 176,400 3,773,584 36,836 4,576,058 1,831,104 88,200 2,525,012 34,170 4,478,486 2,598,293 2,759,259 90,002 10,583,627 1,305,364 1,066,538 18,403,083
Total 951,334 5,410,963 264,600 6,402,964 2,759,259 870,572 35,968,473 1,305,364 1,435,153 55,368,682
1,146,010 8,393,411 5,478,893 3,329,313 971,297 19,003 901,279 20,239,206 262,247 262,247
916,808 2,191,557 2,301,833 488,504 5,898,702 1,510,900 1,773,147
1,146,010 1,146,010 229,395 1,095,779 5,478,893 7,670,252 2,753,947 1,961,170 1,520,417 500,000 4,632,010 3,220 3,220 1,090,451 4,998,956 8,589,293 15,642,525 (422,898) (4,110,807) 2,760,558 1,350,249 (2,760,558) -
4,584,233 8,393,411 21,915,374 11,866,680 971,297 19,003 500,000 4,632,010 2,486,674 55,368,682 -
NOTE: A) Loan has been categorized in Gross amount & provision provided is included in other liabilities under above 1 year bucket. B) The Bank has no borrowings against the collateral of its own assets. 9. Paid up Share Capital Paid up share capital of the Bank has moved over the years as follows: Financial Year Initial capital F.Y.1994-95 (BS 2051-52) F.Y. 1997-98 (BS 2054-55) F.Y. 1998-99 (BS 2055-56) F.Y. 1999-00 (BS 2056-57) F.Y. 2000-01 (BS 2057-58) F.Y. 2001-02 (BS 2058-59) Cumulative Paid up Capital Rs. 60,000,000.00 120,000,000.00 192,000,000.00 240,000,000.00 300,000,000.00 390,000,000.00 429,000,000.00 Remarks Issue of 100% bonus share Issue of 60% bonus share Issue of 25% bonus share Issue of 25% bonus share Issue of 30% bonus share Issue of 10% bonus share
F.Y. 2002-03 (BS 2059-60) F.Y. 2003-04 (BS 2060-61) F.Y. 2004-05 (BS 2061-62) F.Y. 2005-06 (BS 2062-63) F.Y. 2006-07 (BS 2063-64) F.Y. 2007-08 (BS 2064-65) F.Y. 2008-09 (BS 2065-66) F.Y. 2009-10 (BS 2066-67) F.Y. 2010-11 (BS 2067-68) 10. Dividend and Bonus
536,250,000.00 643,500,000.00 772,200,000.00 810,810,000.00 1,013,512,500.00 1,216,215,000.00 1,600,000,000.00 2,000,000,000.00 2,400,000,000.00
Issue of 25% bonus share Issue of 20% bonus share Issue of 20% bonus share Issue of 5% bonus share Issue of 25% bonus share Issue of 20% bonus share Issue of 31.56% bonus share Issue of 25% bonus share Issue of 20% bonus share
The Board of Directors has recommended 13.4211% cash dividend & 15% stock dividend for the financial year. 11. Unpaid Dividend As on the balance sheet date, unpaid dividend over five years amounts to Rs. 5,474,731. 12. Deferred Tax Deferred income taxes are calculated on temporary differences using an effective tax rate of 30%. The movement in deferred tax assets / (liabilities) during the year is as follows: Balance 16 Jul 2011 Opening Deferred Tax Assets / (Liabilities) Movement During the Year Closing Deferred Tax Assets / (Liabilities) 8,355,221 (5,453,942) 2,901,279 Balance 15 Jul 2012 2,901,279 20,472,803 23,374,082
The movement during the year is credited to the Profit and Loss Account & transferred to Deferred Tax Reserve through Profit & Loss Appropriation A/C. 13. Provision for Gratuity During the year, the Bank has provided Rs. 50,835,535 (Previous Year Rs. 58,946,092) on account of gratuity. 14. Provision for Bonus Provision for bonus has been made as per the Bonus Act, 2030 and provided for at 10% of net profit, after making adjustments for loan loss provision and bonus. 15. Staff Leave Encashment Provision Provision for staff leave expenses amounting to Rs 62,679,613 has been charged to the profit and loss account during the year.
16. Investments in Visa Card International Visa Card International on conversion into a private stock corporation allocated its franchisee class C common stock to members in recognition of their membership interest. The bank currently holds 5,860 units of class C common stock. 17. Interest suspense A sum of Rs. 534,366,185 has been provided as interest suspense representing interest accrued on loans but not realised as at the year-end. 18. Contingent Liability Beneficiaries of bank guarantees have claimed Rs.16,888,000 which the bank has not accepted as debt. Self assessment returns filed by the bank for the financial years 2008-09 (2065-66), 2009-10 (2066-67) & 2010-11 (2067-68) are pending for assessment with Inland Revenue Department. Assessments of the years prior to those mentioned above have been completed and taxes fully settled. However, the bank has filed appeal with the Revenue Tribunal against the assessment done by Large Tax Payers Office & the Inland Revenue Department pertaining to FY 2006-07 (2063-64) & 2007-08 (2064-65 BS), with respect to which a sum of Rs. 38,049,568 has been shown as contingent liability. 19. Related Parties Disclosure Habib Bank Ltd. is a joint venture partner with the bank holding 20% of total share capital. During the review period Rs. 59,999,980 has been repatriated to Habib Bank on account of dividend payable for F.Y.2067-68. Key Management Personnel Key Management Personnel of the Banks includes Directors of the Board and Chief Executive Officer and are as follows: Mr. Manoj Bahadur Shrestha - Chairman Mr. Ashraf M. Wathra - Vice Chairman Mr. Prem Prakash Khetan - Second Vice Chairman Mr. Prachanda Bahadur Shrestha - Director Mr. Bijaya Bahadur Shrestha - Director Mr. Radha Krishna Pote - Director Mr. Sushil Bikram Thapa - Director Mr. Upendra Keshari Poudyal - Director Mrs. Ranjana Shrestha - Alternate Director Mr. Surendra Silwal Alternate Director Mrs. Menuka Shrestha Alternate Director Mr. Rajendra Kafle Alternate Director Mr. Sunil Bahadur Thapa Alternate Director
Mr. Ashoke S. Rana - Chief Executive Officer Compensation to Key Management Personnel of the Bank The services of the CEO was changed from regular service to contractual service during the year. Total of Compensation paid to Chief Executive Officer during the year both under regular and then under contractual service is as follows: a) Total Salary & Allowances b) Leave Encashment on Termination of Regular Service c) Utilities Payment d) Medical, Accidental & Life Insurance Premium Total Staff Expenses of this FY Rs. 9,446,000 Rs. 4,658,170 Rs. 336,588 Rs. 29,928 Rs. 634,228,832
Chief Executive Officer is also provided the following benefits as per the terms of the contract: i) Bonus to local staff as per Bonus Act, ii) Vehicle Facility Transaction with Key Management Personnel of the Bank The following provides transactions between the Bank and Key Management Personnel of the Bank during the year. Nature of Transaction Meeting Fees Paid Allowance and other fees & expenses 20. Operating Lease Commitment The future minimum lease payment under non-cancellable operating leases with the bank as lessee is NIL. 21. Disclosure under New Capital Adequacy Framework I. Capital structure and capital adequacy a. Tier 1 capital and a breakdown of its components:
SN 1 2 3 4 5 6 7 8 9 PARTICULARS Core Capital (Tier I) Paid up Equity Share Capital Statutory General Reserves Retained Earnings Proposed Bonus Equity Shares Capital Adjustment Reserve Debenture Redemption Reserve Special Reserve Deferred Tax Reserve Miscellaneous Expenditure not w/off AMT IN RS. 4,600,146,030 2,400,000,000 1,383,151,091 72,898,928 360,000,000 357,142,856 4,000,000 23,374,082 (420,927)
Amount in Rs. Current Year 766,800 4,326,613
b. Tier 2 capital and a breakdown of its components:

SN 1 2 3 4 PARTICULARS Supplementary Capital (Tier II) Subordinated Term Debt General loan loss provision Exchange Equalization Reserve Investment Adjustment Reserve AMT IN RS. 683,754,044 300,000,000 352,310,868 29,769,898 1,673,278
c. Detailed information about the Subordinated Term Debts with information on the outstanding amount, maturity, and amount raised during the year and amount eligible to be reckoned as capital funds:
Bond Issued Outstanding Amount Interest Rate Maturity Date Interest Payment Tenor Amount recognised as capital
HBL Bond 2072 NPR 500000000 8% July 2015 Half Yearly Basis 7 Years NPR 300,000,000
d. Total qualifying capital:

SN PARTICULARS 1 Core Capital (Tier I) 2 Supplementary Capital (Tier II) Total AMT IN RS. 4,600,146,030 683,754,044 5,283,900,074
e. Capital adequacy ratio:

Core Capital to Total Risk weighted Exposure Total Capital to Total Risk Weighted Exposure 9.60 11.02
II. Risk exposures a. Risk weighted exposures for Credit Risk, Market Risk and Operational Risk
SN PARTICULARS a Risk Weighted Exposure for Credit Risk b Risk Weighted Exposure for Operational Risk c Risk Weighted Exposure for Market Risk Adjustment under Pillar II Add 2% of gross income for operational risk Add: 2% of total RWE for overalll risk Total Risk Weighted Exposures (a+b+c) AMT IN RS. 42,584,895,177 3,496,411,930 250,523,459 676,431,429 926,636,611 47,934,898,606
b. Risk Weighted Exposures under each of 11 categories of Credit Risk
SN 1 2 3 4 5 6 7 8 9 10 11
PARTICULARS Claims on government & central bank Claims on other official entities Claims on banks Claims on domestic corporates & securitie Claims on regulatory retail portfolio Claims secured by residential properties Claims secured by commercial real estate Past due claims High risk claims Other assets Off balance sheet items Total
AMT IN RS. 610,370,322 590,619,290 21,692,611,756 2,850,871,915 1,096,642,411 1,392,117,405 937,634,799 7,136,766,393 2,659,726,434 3,617,534,449 42,584,895,177
c. Total Risk Weight Exposures calculation table

SN PARTICULARS 1 Total Risk Weighted Exposure 2 Total Core Capital Fund (Tier I) 3 Total Capital Fund (Tier I & II) Total Core Capital to Total RWE Total Capital to Total RWE AMT IN RS. 47,934,898,606 4,600,146,030 5,283,900,074 9.60 11.02
d. Amount of NPAs
SN 1 2 3 4 LOAN CLASSIFICATION Restrucutred Loan Substandard Loan Doubtful Loan Loss Loan Total GROSS AMOUNT 123,791,145 76,405,667 62,067,787 488,900,318 751,164,917 PROVISION 104,973,933 19,101,417 31,033,894 488,900,318 644,009,562 NET NPA 18,817,212 57,304,250 31,033,893 107,155,355
e. NPA ratios
PARTICULARS Gross NPA to Gross Advances Net NPA to Net Advances PEERCENTAGE 2.09 0.31
f.
SN 1 2 3 4
Movement of Non Performing Assets

LOAN CLASSIFICATION Restrucutred Loan Substandard Loan Doubtful Loan Loss Loan Total CURRENT YEAR 123,791,145 76,405,667 62,067,787 488,900,318 751,164,917 PREVIOUS YEAR MOVEMENT (%) 188,464,341 (34.32) 216,053,013 (64.64) 73,457,250 (15.50) 913,773,379 (46.50) 1,391,747,983 (85.28)
g. Write off of Loans and Interest Suspense
PRINCIPAL 401,144,182
INTEREST 185,047,728
TOTAL (Rs) 586,191,910
h. Movements in Loan Loss Provisions and Interest Suspense Movement in Loan Loss Provision
SN 1 2 3 4 5
LOAN LOSS PROVISION Pass Loan Restrucutred Loan Substandard Loan Doubtful Loan Loss Loan Total
CURRENT YEAR PREVIOUS YEAR MOVEMENT (%) 359,029,377 318,132,523 12.86 104,973,933 78,620,452 33.52 19,101,417 54,038,564 (64.65) 31,033,894 36,728,625 (15.50) 488,900,318 913,773,379 (46.50) 1,003,038,939 1,401,293,543 (28.42)
Movement in Interest Suspense
SN
PARTICULARS Interest Suspense
CURRENT YEAR 534,366,185
PREVIOUS YEAR MOVEMENT (%) 606,810,870 (11.94)
i.
Segregation of Investment Portfolio

PARTICULARS Available for Sale Investment in equity Held to Maturity Investment in Treasury Bills Investment in Government Bonds Placements AMT IN RS.
90,002,059 6,402,963,895 2,759,259,402 780,570,000 9,942,793,297
III. Risk Management HBL has set up a strong risk control & monitoring mechanism to ensure compliance with the requirements of the Capital Adequacy Framework based on Basel II accord & at the same time achieve systematic risk assessment & management through strong internal control systems defining rights, authorities, roles and responsibilities at different levels of management and detailed working procedures for various operational aspects. Credit Risk at HBL is being managed through implementation of Credit Policy Guidelines, Credit Policy Manual, and specific Product Documents developed for each banking product. These policies, manual & product documents lay down the basic framework for credit appraisal & authority for approval. A comprehensive credit risk assessment process has been defined which involves individual appraisal of all borrowers including corporate, institutional & SME borrowers against stipulated criteria & also encompasses assignment of credit ratings. The Risk Management Department reviews & appraises the overall loan
portfolio of the bank with respect to risk concentration, market scenario & recommends initiatives to be taken for improved risk management. The Board of Directors on its own & through Risk Management Committee under coordination of an non-executive director further reviews the overall credit & other risk on the basis of the current market conditions & management analysis & issue necessary instructions or amend the policies in order to strengthen the banks credit portfolio. The bank recognizes operational risk as a significant potential risk faced by banks. For proper management of the risk, the bank has developed and implemented different operation manuals like Cash & Customer Service Manual, Bills and Remittance Manual, Fund Transfer Manual, SMS and Internet Banking Manual, IT Policy, Document Retention Manual, Record & Reconciliation Manual etc. which define policy as well as procedural matters for operation of banking activities at different levels. Compliance to these policy & procedures, prudential guidelines and other directives and circulars issued by Nepal Rastra Bank is monitored at branch level by KYC Officers & centrally by Compliance & Internal Control Department. Heads of each business units and branch managers further collect data related to operational risks at local level and make reports to the Executive Operating Officer and General Manager at the Head Office. The management analyses these data, assesses risk and related internal control systems and takes corrective & preventive actions to remedy any breakdown in the system. Capital charge on account of exposure to operational risk is measured and reviewed by the senior management of the bank. The management is strongly committed towards maintaining a strong internal control system at all levels of banking activities in order to mitigate operational risks to the maximum possible extent. Risks associated with adverse movements in exchange rates, interest rate, liquidity and investment in equity are covered under market risk management. This risk is continuously monitored by the Treasury Department under direct supervision of the Executive Financial Officer & General Manager. A comprehensive treasury manual is in place which defines procedures & authority aimed at regulating the related activities including setting up of various risk limits, maintaining liquidity levels & risk hedging. Net open position of all currencies is prepared on daily basis and reported to the management for necessary review & risk / return assessment. Periodic reporting is done to Assets Liabilities Management Committee which reviews the associated risks and returns, assesses the impact of the exposure on the banks capital adequacy position and reports to the Board of Directors. In addition to the credit, operational and market risk, the bank gives due significance to legal, reputation & other risks associated with banking activities as well. These risks are identified, assessed and monitored at regular intervals by the senior management. The Board of Directors also reviews these risks on the basis of feedback from the management & the prevailing market scenario & issue necessary instructions to the management. An effective MIS is in place which provides factual data on all risks, including credit, operational and market exposures which is instrumental in analysis & management of the risks & assessment of capital requirement. A strong & effective internal control system in continuous operation is inevitable for smooth functioning of any organization. Management is primarily entrusted with the responsibility of ensuring that all control systems are in place & are functioning as required within the bank. Compliance & Internal Control Department at Head Office monitors the day to day functioning of the bank through off-site & on-site reviews with particular emphasis on proper functioning of internal control systems & makes reporting to the senior management along with recommendations for necessary corrective actions. Internal Audit function within the bank is fully independent with the department directly reporting to the Audit Committee of the Board. Any lapses or non-compliance with the stipulated control systems as identified during the audit of various business units, branches & departments is reported by the department to the Audit Committee & the Board where upon instructions are issued to the management to remedy such reported instances.
22. Rounding off and Comparative Figures The financial statements are presented in Nepalese Rupees, rounded off to the nearest rupee. Previous year figures have been reclassified / re-arranged to facilitate fair comparison, where necessary.
Schedule 34
Himalayan Bank Limited Statement of loans availed by pomoters / shareholders falling under promoters' group from other banks and financial institutions by pledging shares of the Bank under their ownership
Sahres registered in the name of promoters Total No. of shares 31,200 % of paid up capital
S.N.
Promoters / Shareholders classified under Promoters Group
Particulars of Loan Remarks Name of Bank / Financial Institution providing loan Loan Amount (Rs.) 20,000,000 No. of Shares pledged 13,032
Marwari Sewa Samiti
0.13 Laxmi Bank Limited
Sumit Kumar Agrawal
635,843
2.65 Nepal Bank Ltd
80,000,000
320,056
HIMALAYAN BANK LIMITED KAMALADI, KATHMANDU AS AT Ashad 31, 2069 (July 15, 2012) Schedule 35: Comparison of Unaudited and Audited Financial Statements S.N. PARTICULARS As per Unaudited Financial Statements 55,438,405 2,400,000 2,647,984 500,000 47,730,994 43,968,314 3,762,680 2,159,427 As per Audited Financial Statements 54,364,428 2,760,000 1,872,010 500,000 47,730,994 43,226,085 4,504,909 1,501,424 Variance Variance % Reasons for Variance
1. 1.1 1.2 1.3 1.4 1.5
TOTAL CAPITAL AND LIABILITIES (1.1 TO 1.7) Paid Up Capital Reserve And Surplus Debenture And Bond Borrowings Deposits (A + B) A. Domestic Currency B. Foreign Currency Income Tax Liability Other Liabilities
(1,073,977) 360,000 (775,974) (658,003)
1.6 1.7
2. 2.1 2.2 2.3 2.4 2.5 2.6 2.7 3. 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8
TOTAL ASSETS (2.1 TO 2.7) Cash And Bank Balance Money At Call And Short Notice Investments Loans And Advances Fixed Assets Non Banking Assets Other Assets PROFIT AND LOSS ACCOUNT Interest Income Interest Expense A. Net Interest Income (3.1 - 3.2) Fees, Commission And Discount Other Operating Income Foreign Exchange Gain/Loss (Net) B. Total Operating Income (A. + 3.3 + 3.4 + 3.5) Staff Expenses Other Operating Expenses C. Operating Profit Before Provision (B. - 3.6 - 3.7) Provision For Possible Losses D. Operating Profit (C. - 3.8) Non Operating Income / Expenses (Net) Write Back Of Provision For Possible Loss E. Profit From Regular Activities (D. + 3.9 + 3.10) Extraordinary Income / Expenses (Net) F. Profit Before Bonus And Taxes (E. + 3.11) Provision For Staff Bonus Provision For Tax G. Net Profit / Loss (F. - 3.12 - 3.13)
55,438,405 6,362,296 264,600 10,069,251 35,968,473 1,305,364 1,468,421
54,364,428 6,362,296 264,600 10,031,580 34,965,434 1,305,364 1,435,153
(1,073,977) 0 (37,671) (1,003,039) 0 (33,268)
(1.94) 15.00 declarationof bonus shares (29.30) additional provisions, declaration of bonus shares & cash dividend (30.47) Provision for loan loss netted off with loans,declaration of cash dividend, regrouping of account balances (1.94) 0.00 (0.37) Adjustment of Interest Accrual (2.79) Netting off of loans & advances with provision made for possible losses 0.00 (2.27) Regrouping of account balances, change in estimated tax liability (0.01) adjustment of interest suspense 0.00 (0.03) (1.28) adjustment of provisions made (0.25) 0.01 adjustment of provisions made (0.34) adjustment of provisions made (0.32) (780.40) adjustment of loan loss provision, disclosure of gross increase (35.62) 0.59 regrouping of accounts adjustment of loan loss provision, disclosure of gross decrease 16.68 (9,769.70) loan written off disclosed separately (7.61) (7.61) Post audit decrease in net profit before tax (4.57) change in tax liability on final computation (8.92)
4,725,552 2,816,441 1,909,111 517,464 182,170 309,898 2,918,643 634,191 716,873 1,567,579 (74,293) 1,641,872 7,959 1,649,831 4,106 1,653,937 150,358 451,074 1,052,505
4,724,887 2,816,441 1,908,446 510,840 182,029 309,898 2,911,213 634,229 714,436 1,562,548 505,491 1,057,057 8,006 859,977 1,925,039 (397,038) 1,528,001 138,909 430,453 958,638
(665) 0 (665) (6,624) (7,430) 38 (2,437) (5,031) 579,784 (584,815) 47 859,977 275,208 (401,144) (125,936) (11,449) (20,621) (93,867)
3.9 3.10
3.11
3.12 3.13
HIMALAYAN BANK LIMITED KAMALADI, KATHMANDU AS AT Ashad 31, 2069 (July 15, 2012) Schedule 35: Comparison of Unaudited and Audited Financial Statements S.N. PARTICULARS As per Unaudited Financial Statements 55,438,405 2,400,000 2,647,984 500,000 47,730,994 43,968,314 3,762,680 2,159,427 As per Audited Financial Statements 54,364,428 2,760,000 1,872,010 500,000 47,730,994 43,226,085 4,504,909 1,501,424 Variance Variance % Reasons for Variance
1. 1.1 1.2 1.3 1.4 1.5
TOTAL CAPITAL AND LIABILITIES (1.1 TO 1.7) Paid Up Capital Reserve And Surplus Debenture And Bond Borrowings Deposits (A + B) A. Domestic Currency B. Foreign Currency Income Tax Liability Other Liabilities
(1,073,977) 360,000 (775,974) (658,003)
1.6 1.7
2. 2.1 2.2 2.3 2.4 2.5 2.6 2.7 3. 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8
TOTAL ASSETS (2.1 TO 2.7) Cash And Bank Balance Money At Call And Short Notice Investments Loans And Advances Fixed Assets Non Banking Assets Other Assets PROFIT AND LOSS ACCOUNT Interest Income Interest Expense A. Net Interest Income (3.1 - 3.2) Fees, Commission And Discount Other Operating Income Foreign Exchange Gain/Loss (Net) B. Total Operating Income (A. + 3.3 + 3.4 + 3.5) Staff Expenses Other Operating Expenses C. Operating Profit Before Provision (B. - 3.6 - 3.7) Provision For Possible Losses D. Operating Profit (C. - 3.8) Non Operating Income / Expenses (Net) Write Back Of Provision For Possible Loss E. Profit From Regular Activities (D. + 3.9 + 3.10) Extraordinary Income / Expenses (Net) F. Profit Before Bonus And Taxes (E. + 3.11) Provision For Staff Bonus Provision For Tax G. Net Profit / Loss (F. - 3.12 - 3.13)
55,438,405 6,362,296 264,600 10,069,251 35,968,473 1,305,364 1,468,421
54,364,428 6,362,296 264,600 10,031,580 34,965,434 1,305,364 1,435,153
(1,073,977) 0 (37,671) (1,003,039) 0 (33,268)
(1.94) 15.00 declarationof bonus shares (29.30) additional provisions, declaration of bonus shares & cash dividend (30.47) Provision for loan loss netted off with loans,declaration of cash dividend, regrouping of account balances (1.94) 0.00 (0.37) Adjustment of Interest Accrual (2.79) Netting off of loans & advances with provision made for possible losses 0.00 (2.27) Regrouping of account balances, change in estimated tax liability (0.01) adjustment of interest suspense 0.00 (0.03) (1.28) adjustment of provisions made (0.25) 0.01 adjustment of provisions made (0.34) adjustment of provisions made (0.32) (780.40) adjustment of loan loss provision, disclosure of gross increase (35.62) 0.59 regrouping of accounts adjustment of loan loss provision, disclosure of gross decrease 16.68 (9,769.70) loan written off disclosed separately (7.61) (7.61) Post audit decrease in net profit before tax (4.57) change in tax liability on final computation (8.92)
4,725,552 2,816,441 1,909,111 517,464 182,170 309,898 2,918,643 634,191 716,873 1,567,579 (74,293) 1,641,872 7,959 1,649,831 4,106 1,653,937 150,358 451,074 1,052,505
4,724,887 2,816,441 1,908,446 510,840 182,029 309,898 2,911,213 634,229 714,436 1,562,548 505,491 1,057,057 8,006 859,977 1,925,039 (397,038) 1,528,001 138,909 430,453 958,638
(665) 0 (665) (6,624) (7,430) 38 (2,437) (5,031) 579,784 (584,815) 47 859,977 275,208 (401,144) (125,936) (11,449) (20,621) (93,867)
3.9 3.10
3.11
3.12 3.13
HIMALAYAN BANK LIMITED KAMALADI, KATHMANDU UNAUDITED FINANCIAL RESULTS (QUARTERLY) AS AT 4th QUARTER (15/07/2012) OF THE FISCAL YEAR 2011/2012 Schedule 36: Unaudited Financial Results This Quarter Ending 55,438,405 2,400,000 2,647,984 500,000 47,730,994 43,968,314 3,762,680 2,159,427 55,438,405 6,362,296 264,600 10,069,251 35,968,473 3,801,947 327,478 1,041,645 144,544 2,288,280 1,550,338 732,354 5,581,688 18,565,042 5,737,104 1,305,364 1,468,421 4,725,552 2,816,441 1,909,111 517,464 182,170 309,898 2,918,643 634,191 716,873 1,567,579 (74,293) 1,641,872 7,959 1,649,831 4,106 1,653,937 150,358 451,074 1,052,505 PREVIOUS QUARTER ENDING 55,496,928 2,400,000 2,165,766 500,000 0 47,001,692 43,226,085 3,775,607 3,429,470 55,496,928 5,397,219 459,260 11,212,600 34,972,137 3,443,179 221,313 1,062,718 204,770 1,954,378 1,503,396 784,725 5,592,141 18,373,311 5,275,385 1,232,072 2,223,640 3,444,020 2,163,156 1,280,864 375,807 131,243 164,227 1,952,141 392,654 480,550 1,078,937 191,874 887,063 7,566 894,629 1,444 896,073 81,461 244,384 570,228 RS. IN '000 CORRESPONDING PREVIOUS YEAR QUARTER ENDING 48,137,497 2,400,000 1,595,478 500,000 10,000 40,920,627 36,417,576 4,503,051 2,711,392 48,137,497 2,964,651 734,000 8,769,939 32,968,270 3,536,329 93,777 1,090,280 214,881 2,137,391 1,257,770 989,730 5,128,681 17,089,380 4,966,380 1,187,493 1,513,144 4,326,141 2,414,807 1,911,333 350,365 129,517 195,529 2,586,744 517,592 582,210 1,486,942 243,583 1,243,359 15,856 1,259,215 102,292 1,361,507 123,773 344,619 893,115
S.N. 1. 1.1 1.2 1.3 1.4 1.5
PARTICULARS TOTAL CAPITAL AND LIABILITIES (1.1 TO 1.7) PAID UP CAPITAL RESERVE AND SURPLUS DEBENTURE AND BOND BORROWINGS DEPOSITS (A + B) A. DOMESTIC CURRENCY B. FOREIGN CURRENCY INCOME TAX LIABILITY OTHER LIABILITIES TOTAL ASSETS (2.1 TO 2.7) CASH AND BANK BALANCE MONEY AT CALL AND SHORT NOTICE INVESTMENTS LOANS AND ADVANCES a. Real Estate Loan 1. Residential Real Estate (except Personal Home Loan upto Rs. 10 Mil) 2. Business Complex & Residential Apartment Constr 3. Income Generating Commercial Complex Loan 4. Other Real Estate Loan (including Land Purchase & Plotting) b. Personal Home Loan of Rs. 10 Mil or less c. Margin Type Loan d. Term Loan e. Overdraft Loan/TR Loan/WC Loan f. Others FIXED ASSETS NON BANKING ASSETS OTHER ASSETS PROFIT AND LOSS ACCOUNT INTEREST INCOME INTEREST EXPENSE A. NET INTEREST INCOME (3.1 - 3.2) FEES, COMMISSION AND DISCOUNT OTHER OPERATING INCOME FOREIGN EXCHANGE GAIN/LOSS (NET) B. TOTAL OPERATING INCOME (A+3.3+3.4+3.5) STAFF EXPENSES OTHER OPERATING EXPENSES C. OPERATING PROFIT BEFORE PROVISION (B-3.6-3.7) PROVISION FOR POSSIBLE LOSSES D. OPERATING PROFIT (C - 3.8) NON OPERATING INCOME / EXPENSES (NET) WRITE BACK OF PROVISION FOR POSSIBLE LOSSES E. PROFIT FROM REGULAR ACTIVITIES (D + 3.9 + 3.10) EXTRAORDINARY INCOME / EXPENSES (NET) F. PROFIT BEFORE BONUS AND TAXES (E + 3.11) PROVISION FOR STAFF BONUS PROVISION FOR TAX G. NET PROFIT / LOSS (F - 3.12 - 3.13)
1.6 1.7 2. 2.1 2.2 2.3 2.4
2.5 2.6 2.7 3. 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13
HIMALAYAN BANK LIMITED KAMALADI, KATHMANDU UNAUDITED FINANCIAL RESULTS (QUARTERLY)- Before Adjustment of LLP & Int. Susp. AS AT FOURTH QUARTER (15/07/2012) OF THE FISCAL YEAR 2011/12 RS. IN '000 Previous Year 20010/11 48,137,497 2,400,000 1,595,478 500,000 10,000 40,920,627 36,417,576 4,503,051 2,711,392 48,137,497 2,964,651 734,000 8,769,939 32,968,270 1,187,493 1,513,144 1st Quarter FY 2011/12 52,602,182 2,400,000 2,102,741 500,000 259,600 44,515,694 40,065,929 4,449,765 2,067 2,822,080 52,602,182 5,489,975 150,000 9,327,567 34,442,195 1,209,732 1,982,713 2nd Quarter FY 2011/12 53,746,574 2,400,000 1,935,526 500,000 411,000 45,793,197 41,804,149 3,989,048 2,706,851 53,746,574 3,978,177 76,416 11,732,963 35,055,150 1,221,677 1,682,191 3rd Quarter FY 2011/12 55,496,928 2,400,000 2,165,766 500,000 47,001,692 43,226,085 3,775,607 3,429,470 55,496,928 5,397,219 459,260 11,212,600 34,972,137 1,232,072 2,223,640 4th Quarter FY 2011/12 55,045,359 2,760,000 1,872,010 500,000 47,730,994 43,968,526 3,762,468 2,182,355 55,367,466 6,362,296 264,600 10,031,580 35,968,473 1,305,364 1,435,153
S.N.
PARTICULARS
1. 1.1 1.2 1.3 1.4 1.5
1.6 1.7 2. 2.1 2.2 2.3 2.4 2.5 2.6 2.7 3. 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13 4. 4.1 4.2 4.3 4.4 4.5 5 5.1 5.2 5.3 5.4
TOTAL CAPITAL AND LIABILITIES (1.1 TO 1.7) PAID UP CAPITAL RESERVE AND SURPLUS DEBENTURE AND BOND BORROWINGS DEPOSITS (A + B) A. DOMESTIC CURRENCY B. FOREIGN CURRENCY INCOME TAX LIABILITY OTHER LIABILITIES TOTAL ASSETS (2.1 TO 2.7) CASH AND BANK BALANCE MONEY AT CALL AND SHORT NOTICE INVESTMENTS LOANS AND ADVANCES (GROSS) FIXED ASSETS NON BANKING ASSETS OTHER ASSETS PROFIT AND LOSS ACCOUNT INTEREST INCOME INTEREST EXPENSE A. NET INTEREST INCOME (3.1 - 3.2) FEES, COMMISSION AND DISCOUNT OTHER OPERATING INCOME FOREIGN EXCHANGE GAIN/LOSS (NET) B. TOTAL OPERATING INCOME (A+3.3+3.4+3.5) STAFF EXPENSES OTHER OPERATING EXPENSES C. OPERATING PROFIT BEFORE PROVISION (B-3.6-3.7) PROVISION FOR POSSIBLE LOSSES (Net) D. OPERATING PROFIT (C - 3.8) NON OPERATING INCOME / EXPENSES (NET) WRITE BACK OF PROVISION FOR POSSIBLE LOSSES E. PROFIT FROM REGULAR ACTIVITIES (D + 3.9 + 3.10) EXTRAORDINARY INCOME / EXPENSES (NET) F. PROFIT BEFORE BONUS AND TAXES (E + 3.11) PROVISION FOR STAFF BONUS PROVISION FOR TAX G. NET PROFIT / LOSS (F - 3.12 - 3.13) RATIOS CAPITAL FUND TO RWA NON PERFORMING LOAN (NPL) TO TOTAL LOAN TOTAL LOAN LOSS PROVISION TO TOTAL NPL COST OF FUNDS CREDIT TO DEPOSIT RATIO (As per NRB Directives) ADDITIONAL INFORMATION AVERAGE YIELD NET INTEREST SPREAD RETURN ON EQUITY - ROE RETURN ON ASSETS - ROA
4,326,141 2,414,807 1,911,333 350,365 129,517 195,529 2,586,744 517,592 582,210 1,486,942 243,583 1,243,359 15,856 1,259,215 102,292 1,361,507 123,773 344,619 893,115 10.68 4.22 100.69 7.15 76.96 11.11 3.96 22.90 1.93
1,132,569 733,050 399,519 116,426 44,642 70,555 631,142 129,324 140,140 361,678 100,787 260,891 (28) 260,863 200 261,063 23,733 72,423 164,907 11.22 4.74 92.27 7.82 70.87 11.05 3.23 14.94 1.31
2,258,020 1,465,248 792,772 246,946 81,741 118,948 1,240,407 258,289 306,230 675,888 145,685 530,203 3,563 533,766 500 534,266 48,570 145,709 339,987 10.76 4.50 96.76 7.51 70.50 10.97 3.47 16.32 1.33
3,444,020 2,163,156 1,280,864 375,807 131,243 164,227 1,952,141 392,654 480,550 1,078,937 191,874 887,063 7,566 894,629 1,444 896,073 81,461 244,384 570,228 11.23 4.36 100.00 7.20 66.93 10.99 3.79 17.76 1.47
4,724,887 2,816,441 1,908,446 510,840 182,029 309,898 2,911,213 634,229 714,436 1,562,548 505,491 1,057,057 8,006 859,977 1,925,040 -397,038 1,528,002 138,909 430,453 958,640
6.94 68.18 11.18 4.25 23.53 2.06
Note: The above figures are subject to change if instructed otherwise by the Statutory Auditors or the Supervising Authority.

Himalayan Bank Limited: (Amount in RS.) Capital and Liabilities Schedule Current Year Previous Year

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Himalayan Bank Limited: (Amount in RS.) Capital and Liabilities Schedule Current Year Previous Year

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HIMALAYAN BANK LIMITED

Schedules 1 to 17 & 32 and 33 form an integral part of this Balance Sheet

Satish Raj Joshi Executive Financial Officer

Sushiel Joshi General Manager