Anual Report Financial Statement 2071 721450424150 PDF

Mega Bank Nepal Limited
Balance Sheet
As at 16 July 2015 (31 Asar 2072)
Capital & Liabilities Schedule This Year Rs. Previous Year Rs.
1. Share Capital 4.1 2,870,560,000 2,609,600,000
2. Reserves & Funds 4.2 204,317,559 133,093,380
3. Debentures & Bonds 4.3
4. Borrowings 4.4 148,233,931 379,632,311
5. Deposits 4.5 21,130,675,125 17,147,648,851
6. Bills Payable 4.6 73,166,080 47,059,856
7. Proposed Cash Dividend 13,734,737 14,715,789
8. Income Tax Liabilities 4,937,206 11,083,748
9. Other Liabilities 4.7 261,578,272 228,403,995
Total 24,707,202,910 20,571,237,930
Assets Schedule This Year Rs. Previous Year Rs.

1. Cash Balance 4.8 539,385,900 438,654,420
2. Balance with Nepal Rastra Bank 4.9 2,203,293,594 1,154,356,180
3. Balance with Banks/Financial Institutions 4.10 293,782,845 238,580,486
4. Money at Call and Short Notice 4.11 1,067,104,071 880,502,000
5. Investments 4.12 1,993,622,844 2,507,410,200
6. Loans, Advances and Bills Purchased 4.13 17,542,625,452 14,496,325,573
7. Fixed Assets 4.14 177,080,017 213,777,748
8. Non Banking Assets 4.15
9. Other Assets 4.16 890,308,187 641,631,323
Total 24,707,202,910 20,571,237,930
0.08 (0.35)
Contingent Liabilities Schedule 4.17
Declaration of Directors Schedule 4.29
Capital Adequacy Table Schedule 4.30(Ka1)
Statement of Credit Risk Schedule 4.30(Kha)
Statement of Eligible Credit Risk Mitigants Schedule 4.30(Ga)
Statement of Operational Risk Schedule 4.30(Gha)
Statement of Market Risk Schedule 4.30(Nga)
Principal Indicators Schedule 4.31
Significant Accounting Policies Schedule 4.32
Notes to Accounts Schedule 4.33
Schedules 4.1 to 4.17 form integral part of the Balance Sheet.
As per our report

For: Dev Associates
Chartered Accountants
Prof. Dr. Madan Kumar Dahal Dr. Duman Thapa Bhoj Bahadur Shah (CA. Umesh Prasad Dhakal)
Chairman Director Director Partner
Gopal Khanal Madan Kumar Acharya Chet Narayan Pandey Anil Shah
Director Director Director Chief Executive Officer
Dipendra Agarwal Parameshwar Pant Ramesh Khadka

Director Director Head Finance & Planning
Date: 21st Mangsir 2072

Place: Kathmandu
Profit and Loss Account
For the period 17 July 2014 to 16 July 2015 (01 Shrawan 2071 to 31 Asar 2072)
Particulars Schedule This Year Rs. Previous Year Rs.

1. Interest Income 4.18 1,804,944,138 1,628,248,863
2. Interest Expense 4.19 914,279,452 807,025,920
Net Interest Income 890,664,686 821,222,943
3. Commission and Discount 4.20 35,281,788 26,810,881

4. Other Operating Income 4.21 110,153,355 81,976,296
5. Exchange Fluctuation Income 4.22 102,381,657 95,288,387
Total Operating Income 1,138,481,486 1,025,298,507
6. Staff Expenses 4.23 186,165,432 167,300,260

7. Other Operating Expenses 4.24 273,399,722 249,691,224
8. Exchange Fluctuation Loss 4.22
Operating Profit before Provision for Possible Losses 678,916,332 608,307,023
9. Provision for Possible Losses 4.25 155,493,065 136,165,094

Operating Profit 523,423,267 472,141,929
10. Non Operating Income /(Expense) 4.26 1,062,157 1,801,290

11. Provision for Possible Losses Write Back 4.27 31,205,326 6,315,680
Profit from Regular Activities 555,690,749 480,258,899
12. Income/(Expense) from Extra-ordinary Activities 4.28 (8,765,603) -

Profit from All Activities 546,925,147 480,258,899
13. Provision for Staff Bonus 49,720,468 43,659,900

14. Provision for Income Tax 150,908,570 131,061,629
Current Year's Tax Provision 150,786,881 133,254,766
Prior Period Tax 269,903 1,576
Deferred Tax (148,214) (2,194,713)
Net Profit/(Loss) 346,296,108 305,537,370
Schedules 4.18 to 4.28 form integral part of the Profit and Loss Account.
As per our report

For: Dev Associates


Place: Kathmandu
Profit & Loss Appropriation Account
Financial Year 2014/15 (2071/72)
Particulars Schedule This Year Rs. Previous Year Rs.
Income
1. Accumulated Profit up to Previous Year 7,228,993 3,294,916
2. This Year's Profit 346,296,108 305,537,370
3. Exchange Fluctuation Fund
4. Transfer from Capital Reserve - 56,474,653
5. Deferred Tax Reserve (148,214)
Total 353,376,888 365,306,939
Expense
1. Accumulated Loss up to Previous Year
2. Current Year's Loss
3. General Reserve Fund 69,259,222 61,107,474
4. Contingent Reserve
5. Institution Development Fund
6. Dividend Equalization Fund
7. Employees Related Reserve
8. Proposed Cash Dividend 13,734,737 14,715,789
9. Proposed Bonus Shares 260,960,000 279,600,000
10. Special Reserve Fund
11. Exchange Fluctuation Fund 591,238 459,970
12. Capital Redemption Reserve
13. Capital Adjustment Fund
14. Deferred Tax Reserve 3,447,000 2,194,713
Total 347,992,196 358,077,946
Accumulated Profit/(Loss) 5,384,692 7,228,993
As per our report

For: Dev Associates

Date: 21st Mangsir 2072 Anil Shah A. A. Mintoo S. Gupta As per our report of
Place: Kathmandu
Statement of Changes in Equity
Rs.
Exchange Other
Accumulated General Capital Share Deferred Tax
Particulars Share Capital Fluctuation Reserves & Total Amount
Profit/(Loss) Reserve Fund Reserve Fund Premium Reserve
Fund Funds
Opening Balance 2,609,600,000 7,228,993 115,816,974 1,549,650 - 643,633 7,854,130 - 2,742,693,380

Deferred Tax Adjustment (3,447,000) 3,447,000 -
Restated Opening Balance 2,609,600,000 3,781,993 115,816,974 1,549,650 - 643,633 11,301,130 - 2,742,693,380
Adjustments: -
Net Profit for the Period 346,296,108 346,296,108
Issuance of Share Capital -
Proposed Cash Dividend (13,734,737) (13,734,737)
Proposed Bonus Share 260,960,000 (260,960,000) - -
General Reserve Fund (69,259,222) 69,259,222 -
Deferred Tax Reserve (148,214) 148,214 -
Exchange Fluctuation Fund (591,238) 591,238 -
Fixed Assets Received under Grant (377,193) (377,193)
Closing Balance 2,870,560,000 5,384,692 185,076,195 1,172,457 - 1,234,871 11,449,344 - 3,074,877,559
As per our report

For: Dev Associates


Place: Kathmandu
Cash Flow Statement
Particulars This Year Rs. Previous Year Rs.

(A) Cash Flow from Operating Activities 1,253,059,837 (417,373,678)
1. Cash Received 2,021,188,874 1,831,278,115
1.1 Interest Income 1,774,852,559 1,628,407,615
1.2 Commission and Discount Income 35,130,602 25,889,781
1.3 Income from Foreign Exchange Transaction 100,016,706 93,448,506
1.4 Recovery of Loan Written Off - -
1.5 Other Incomes 111,189,007 83,532,213
2. Cash Payment (1,548,071,676) (1,254,150,690)
2.1 Interest Expenses (949,916,155) (742,504,415)
2.2 Staff Expenses (184,900,589) (160,743,749)
2.3 Office Operating Expenses (208,944,706) (196,472,423)
2.4 Income Tax Payment (160,650,326) (129,067,787)
2.5 Other Expenses (43,659,900) (25,362,316)
Cash Flow before changes in Working Capital 473,117,198 577,127,425
(Increase)/Decrease in Current Assets (3,067,004,608) (3,941,779,783)
1. (Increase)/Decrease in Money at Call and Short Notice (186,602,071) 742,588,222
2. (Increase)/Decrease in Other Short Term Investment 513,787,356 (1,180,936,116)
3. (Increase)/Decrease in Loans, Advances and Bills Purchase (3,179,199,822) (3,152,138,859)
4. (Increase)/Decrease in Other Assets (214,990,071) (351,293,030)
Increase/(Decrease) in Current Liabilities 3,846,947,248 2,947,278,680
1. Increase/(Decrease) in Deposits 3,983,026,274 4,614,190,284
2. Increase/(Decrease) in Certificates of Deposits - -
3. Increase/(Decrease) in Short Term Borrowings (231,398,379) (1,622,959,939)
4. Increase/(Decrease) in Other Liabilities 95,319,353 (43,951,665)
(B) Cash Flow from Investment Activities (28,107,974) (44,533,830)
1. (Increase)/Decrease in Long-term Investment - -
2. (Increase)/Decrease in Fixed Assets (28,107,974) (44,533,830)
3. Interest income from Long Term Investment - -
4. Dividend Income - -
5. Others -
(C) Cash Flow from Financing Activities (22,445,562) (184,474,209)
1. Increase/(Decrease) in Long term Borrowings (Bonds, Debentures etc) - -
2. Increase/(Decrease) in Share Capital - -
3. Increase/(Decrease) in Other Liabilities - -
4. Increase/(Decrease) in Refinance/facilities received from NRB - -
5. Dividend Payment (22,445,562) (184,474,209)
(D) Income/(Loss) from change in exchange rate in Cash & Bank balance 2,364,951 1,839,881
(E) Current Year's Cash Flow from All Activities 1,204,871,252 (644,541,836)
(F) Opening Cash and Bank Balance 1,831,591,086 2,476,132,921
(G) Closing Cash and Bank Balance 3,036,462,338 1,831,591,086
As per our report

For: Dev Associates


Place: Kathmandu
Schedule 4.1
Share Capital and Ownership
As at 16 July 2015 (31 Asar 2072)

1. Share Capital
1.1 Authorized Capital 4,000,000,000 4,000,000,000
a) 40,000,000 Ordinary Shares of Rs. 100 each 4,000,000,000 4,000,000,000
b) ...Non-redeemable Preference Shares of Rs.. each
c) ...Redeemable Preference Shares of Rs.. each
1.2 Issued Capital 2,609,600,000 2,330,000,000
1.3 Paid Up Capital 2,609,600,000 2,330,000,000
1.4 Proposed Bonus Shares 260,960,000 279,600,000
1.5 Calls in Advance
Total (1.3+1.4+1.5) 2,870,560,000 2,609,600,000
Share Ownership
This Year Rs. Previous Year Rs.
Particulars
% Share Capital Share Capital %
1. Local Ownership 100.00 2,609,600,000 2,330,000,000 100.00
1.1 Government of Nepal
1.2 "Ka" Class Licensed Institutions
1.3 Other Licensed Institutions
1.4 Other Entities
1.5 General Public 30.00 782,880,000 699,000,000 30.00
1.6 Others 70.00 1,826,720,000 1,631,000,000 70.00
2. Foreign Ownership
Total 100.00 2,609,600,000 2,330,000,000 100.00
Details of Shareholders Holding 0.5% Shares
This Year
S.No. Particulars
% Rs.
1 Dr. Duman Singh Thapa Chhetri 0.82 21,280,000
2 Shambhu Bikram Thapa 0.64 16,800,000
3 Gopal Khanal 0.52 13,440,000
4 Tulsiram Pokharel 0.51 13,224,960
Schedule 4.2
Reserves & Funds
As at 16 July 2015 (31 Asar 2072)

1. General Reserve 185,076,195 115,816,974
2. Capital Reserve 1,172,457 1,549,650
a. Capital Reserve (Grant on Fixed Assets) 1,172,457 1,549,650
3. Capital Redemption Reserve
4. Capital Adjustment Fund
5. Other Reserve and Fund 11,449,344 7,854,130
a. Contingent Reserve
b. Institution Development Fund
c. Dividend Equalization Fund
d. Special Reserve Fund
e. Assets Revaluation Reserve
f. Deferred Tax Reserve 11,449,344 7,854,130
g. Other Free Reserve - -
h. Other Reserve Funds
6. Accumulated Profit/(Loss) 5,384,692 7,228,993
7. Exchange Fluctuation Fund 1,234,871 643,633
Total 204,317,559 133,093,380
-
Schedule 4.3
Debentures & Bonds
As at 16 July 2015 (31 Asar 2072)

1. .% Bond/Debentures of Rs..each
Issued on with maturity on .
(Redemption Reserve till date:Rs.)
2. .% Bond/Debentures of Rs..each -
Issued on with maturity on .
(Redemption Reserve till date:Rs.)
Total (1+2) - -
Schedule 4.4
Borrowings
As at 16 July 2015 (31 Asar 2072)

A. Local
1. Government of Nepal
2. Nepal Rastra Bank
3. Repo Liability
4. Inter-Bank and Financial Institutions 147,296,431 373,069,811
5. Other Organized Institutions
6. Others 937,500 6,562,500
Total 148,233,931 379,632,311
B. Foreign
1. Banks
2. Others
Total - -
Total (A+B) 148,233,931 379,632,311
Schedule 4.5
Deposits
As at 16 July 2015 (31 Asar 2072)

I. Non Interest Bearing Deposits
A. Current Deposits 915,352,022 465,115,603
1. Local Currency 890,071,429 444,177,835
1.1 Nepal Government 4,786,376 6,478,047
1.2 "Ka" Class Licensed Institutions -
1.3 Other Licensed Financial Institutions 35,454,582 26,204,819
1.4 Other Organized Institutions 813,802,178 383,036,709
1.5 Individuals 32,619,132 25,843,371
1.6 Others 3,409,161 2,614,889
2. Foreign Currency 25,280,593 20,937,768
2.1 Nepal Government -
2.3 Other Licensed Financial Institutions -
2.5 Individuals 2,254,798 336,842
2.6 Others -
B. Margin Deposits 129,938,705 120,573,028
1. Employees Guarantee -
2. Guarantee Margin 66,037,505 51,373,228
3. Letter of Credit Margin 63,901,200 69,199,800
4. Others -
C. Others 39,883,300 16,835,335
1. Local Currency 39,883,300 9,350,975
1.1 Financial Institutions - 1,000,000
1.2 Other Organized Institutions 12,286,001
1.3 Individual 27,597,299 8,350,975
2. Foreign Currency - 7,484,360
2.1 Financial Institutions -
2.2 Other Organized Institutions -
2.3 Individual - 7,484,360
I. Total Non Interest Bearing Deposits (A+B+C) 1,085,174,027 602,523,966
Contd.
II. Interest Bearing Deposits
A. Savings Deposits 6,371,715,686 5,874,366,115
1. Local Currency 6,284,337,574 5,812,940,634
1.1 Institutions 94,989,545 61,471,834
1.2 Individuals 6,189,348,029 5,751,468,800
1.3 Others - -
2.1 Institutions -
2.2 Individuals 87,378,112 61,425,481
2.3 Others -
B. Fixed Deposits 7,340,932,819 8,239,751,955
1. Local Currency 6,207,837,052 7,919,573,603
1.1 Institutions 4,237,212,372 5,527,973,482
1.2 Individuals 1,970,624,680 2,391,600,121
1.3 Others -
2. Foreign Currency 1,133,095,767 320,178,352
2.1 Institutions 1,124,770,575 317,780,666
2.2 Individuals 8,325,192 2,397,686
2.3 Others -
C. Call Deposits 6,332,852,593 2,431,006,815
1. Local Currency 6,296,890,747 2,331,835,003
1.1 "Ka" Class Licensed Institutions - -
1.2 Other Licensed Financial Institutions 3,089,924,713 1,245,072,417
1.3 Other Organized Institutions 3,084,623,729 982,653,652
1.4 Individuals 122,342,305 104,108,934
1.5 Others -
2.2 Other Licensed Financial Institutions -
2.4 Individuals 4,586,389 3,822,230
2.5 Others -
D. Certificate of Deposit - -
1. Organized Institutions
2. Individuals
3. Others
II. Total Interest Bearing Deposits (A+B+C+D) 20,045,501,098 16,545,124,885
Total Deposits (I+II) 21,130,675,125 17,147,648,851
Schedule 4.6
Bills Payable
As at 16 July 2015 (31 Asar 2072)

1. Local Currency 10,096,555 9,417,855
Total 73,166,080 47,059,856
Schedule 4.7
Other Liabilities
As at 16 July 2015 (31 Asar 2072)

1. Pension/Gratuity Fund 9,854,276 6,825,556
2. Employees Provident Fund
3. Employees Welfare Fund
4. Provision for Staff Bonus 49,720,468 43,659,900
5. Interest Payable on Deposits 70,785,311 106,399,126
6. Interest Payable on Borrowings 3,114 26,003
7. Unearned Discount and Commission 158,814 310,000
8. Sundry Creditors 8,729,726 8,111,354
9. Branch Reconciliation Account
10. Deferred Tax Liabilities - -
11. Dividend Payable 17,496,018 25,225,791
12. Audit Fees Payable 509,630 463,300
13. Others 104,320,913 37,382,965
13.1. Provision for Accumulated Staff Leave 15,038,515 16,802,393
13.2. TDS Payable 11,202,229 8,238,956
13.3. Remittance Payable 2,802,996 6,221,630
13.4. Others 75,277,172 6,119,986
Total 261,578,272 228,403,995
Schedule 4.8
Cash Balance
As at 16 July 2015 (31 Asar 2072)

1. Local Currency (Including Coins) 526,219,181 433,846,693
2. Foreign Currencies 13,166,719 4,807,727
Total 539,385,900 438,654,420
Schedule 4.9
Balance with Nepal Rastra Bank
As at 16 July 2015 (31 Asar 2072)
Foreign Currency
Particulars Local Currency This Year Rs. Previous Year Rs.
INR Convertible FCY Total
1. Nepal Rastra Bank 2,196,064,839 - 7,228,755 7,228,755 2,203,293,594 1,154,356,180
a. Current Account 2,196,064,839 7,228,755 7,228,755 2,203,293,594 1,154,356,180
b. Other Account - - -
Note: Balance as per the confirmation statements is Rs. 291,966,666.75
Schedule 4.10
Balance with Banks / Financial Institutions
As at 16 July 2015 (31 Asar 2072)
Foreign Currency
Particulars Local Currency This Year Rs. Previous Year Rs.
INR Convertible FCY Total
1. Local Licensed Institutions 121,349,378 - - - 121,349,378 117,967,885
a. Current Account 121,349,378 - - 121,349,378 117,967,885
2. Foreign Banks - 85,509,983 86,923,484 172,433,467 172,433,467 120,612,601
a. Current Account 85,509,983 86,923,484 172,433,467 172,433,467 120,612,601
Total 121,349,378 85,509,983 86,923,484 172,433,467 293,782,845 238,580,486
Note: Balance as per the confirmation statements is Rs. 296,856,142
Schedule 4.11
Money at Call and Short Notice
As at 16 July 2015 (31 Asar 2072)

1. Local Currency - 235,000,000
2. Foreign Currency 1,067,104,071 645,502,000
Total 1,067,104,071 880,502,000
Schedule 4.12
Investments
As at 16 July 2015 (31 Asar 2072)
Purpose Previous Year

Particulars This Year Rs.
Trading Others Rs.
1. Nepal Government Treasury Bills 380,260,244 380,260,244 2,187,647,600
2. Nepal Government Saving Bonds - -
3. Nepal Government Other Securities 600,000,000 600,000,000 -
4. Nepal Rastra Bank Bonds - -
5. Foreign Bonds - -
6. Local Licensed Institutions - 125,060,000
7. Foreign Banks 711,060,000 711,060,000 192,400,000
8. Shares of Organized Institutions 2,302,600 2,302,600 2,302,600
9. Bonds and Debentures of Organized Institutions - -
10. Other Investments 300,000,000 300,000,000 -
- -
Total Investment - 1,993,622,844 1,993,622,844 2,507,410,200
Provision - -
Net Investment - 1,993,622,844 1,993,622,844 2,507,410,200
Schedule 4.12(Ka)
Investment in Shares, Debentures and Bonds
As at 16 July 2015 (31 Asar 2072)
Cost Price As Per Market This Year Previous Year

Particulars Provision
Rs. Value Rs. Rs. Rs.
1. Investment in Shares 2,302,600 - 2,302,600 2,302,600
1.1 Nepal Clearing House Limited 2,302,600 Not Listed - 2,302,600 2,302,600
(23,026 ordinary shares of NPR 100 paid up)
1.2
1.3
2. Investment in Debentures and Bonds - - - - -
1.1
1.2
Total Investment 2,302,600 - - 2,302,600 2,302,600

3. Provision for Loss
3.1 Up to Previous Year
3.2 Addition/(Writeback) This Year
Total Provision - - - - -
Net Investment 2,302,600 - - 2,302,600 2,302,600
Schedule 4.12.1
Held for Trading Investments
As at 16 July 2015 (31 Asar 2072)
Rs.
Previous Current Market This Year
Previous Year
Particulars Cost Price Market Price Profit/(Loss) Remarks
Profit/(Loss)
(A) Price (B) (B-A)
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 Organized Institutions
9. Placement in Foreign Banks
10. Inter Bank Lending
11. Other Investments
Total Investments - - - - -
Schedule 4.12.2
Held to Maturity Investments
As at 16 July 2015 (31 Asar 2072)
Rs.
Cost Price Impairment Profit / (Loss)

Particulars Remarks
(A) Till Date (B) This Year (C) This Year (A-B-C) Previous Year
1. Nepal Government Treasury Bills 380,260,244
3. Nepal Government Other Securities 600,000,000
4. Nepal Rastra Bank Bonds -
5. Foreign Bonds
8. Shares, Debentures and Bonds of Local Organized Institutions
9. Placement in Foreign Banks 711,060,000
10. Other Investments 300,000,000
Total Investments 1,991,320,244 - - - -
Schedule 4.12.3
Available for Sale Investments
As at 16 July 2015 (31 Asar 2072)
Rs.
Previous Current Market This Year
Previous Year
Particulars Cost Price Market Price Adjustment Remarks
Profit / (Loss)
(A) Price (B) Fund(B -A)
1. Nepal Government Treasury Bills
3. Nepal Government Other Securities
5. Foreign Bonds
8. Shares, Debentures and Bonds of Local Organized Institutions 2,302,600
9. Placement in Foreign Banks
10. Other Investments
Total Investments 2,302,600 - - - -
Schedule 4.13
Classification of Loans, Advances and Bills Purchased & Provisioning
As at 16 July 2015 (31 Asar 2072)
Loans & Advances Bills Purchased & Discounted

Domestic
Deprived Sector Foreign Total Domestic Foreign Total
Other
Insured Uninsured
1. Performing Loans - 850,407,681 16,347,738,800 - 17,198,146,481 - 483,289,247 483,289,247 17,681,435,728 14,557,055,557
1.1 Pass 822,848,806 15,002,266,525 15,825,115,331 411,514,028 411,514,028 16,236,629,359 14,557,055,557
1.2 Watch List 27,558,876 1,345,472,274 1,373,031,150 71,775,219 71,775,219 1,444,806,369
2. Non-Performing Loans - 6,028,428 309,814,300 - 315,842,727 - - - 315,842,727 324,151,679
2.1 Restructured / Rescheduled - - - -
2.2 Substandard 4,083,054 15,859,244 19,942,298 - 19,942,298 25,016,991
2.3 Doubtful 954,077 74,036,767 74,990,844 - 74,990,844 132,155,657
2.4 Loss 991,296 219,918,290 220,909,586 - 220,909,586 166,979,032
A. Total Loans (1+2) - 856,436,109 16,657,553,099 - 17,513,989,208 - 483,289,247 483,289,247 17,997,278,456 14,881,207,236
3. Loan Loss Provision
3.1 Pass 8,228,488 150,022,665 158,251,153 - 4,115,140 4,115,140 162,366,294 145,570,556
3.2 Watch List 551,178 26,909,445 27,460,623 1,435,504 1,435,504 28,896,127 -
3.3 Restructured / Rescheduled - - - -
3.4 Substandard 1,020,763 3,964,811 4,985,574 - 4,985,574 6,254,248
3.5 Doubtful 477,039 37,018,383 37,495,422 - 37,495,422 66,077,828
3.6 Loss 991,296 219,918,290 220,909,586 - 220,909,586 166,979,032
B. Total Provision - 11,268,764 437,833,595 - 449,102,359 - 5,550,645 5,550,645 454,653,003 384,881,663
4. Provision up to Previous Year -
4.1 Pass 6,676,661 136,385,739 143,062,400 - 2,508,156 2,508,156 145,570,556 114,742,968
4.2 Watch List - - -
4.3 Restructured / Rescheduled - - -
4.4 Substandard 38,337 6,215,911 6,254,248 - 6,254,248 12,365,983
4.5 Doubtful 105,219 65,972,609 66,077,828 - 66,077,828 65,894,299
4.6 Loss 721,187 166,257,845 166,979,032 - 166,979,032 73,518,999
C. Total Provision up to Previous Year - 7,541,404 374,832,104 - 382,373,508 - 2,508,156 2,508,156 384,881,664 266,522,249
D. Provision Write Back This Year - - 31,205,326 - 31,205,326 - - - 31,205,326 6,315,680
E. Additional Provision This Year - 3,727,360 94,206,817 - 97,934,177 - 3,042,489 3,042,489 100,976,665 124,675,094
F. Net Changes This Year - 3,727,360 63,001,491 - 66,728,851 - 3,042,489 3,042,489 69,771,339 118,359,414
Net Loan (A-B) - 845,167,345 16,219,719,505 - 17,064,886,850 - 477,738,603 477,738,603 17,542,625,452 14,496,325,573
Schedule 4.13(A)
Securitywise Loans, Advances and Bills Purchased
As at 16 July 2015 (31 Asar 2072)

A. Secured 17,997,278,456 14,881,207,236
1. Movable/Immovable Assets 17,387,786,905 14,380,850,974
2. Guarantee of Local Licensed Institutions 322,065,215 228,587,849
3. Government Guarantee
4. Guarantee of Internationally Rated Banks
5. Export Documents
6. Fixed Deposit Receipts 29,481,144 48,743,285
a. Own 29,481,144 48,743,285
b. Other Licensed Institutions
7. Government Securities
8. Counter Guarantee
9. Personal Guarantee
10. Other Securities 257,945,192 223,025,128
B. Unsecured
Total 17,997,278,456 14,881,207,236
Schedule 4.14
Fixed Assets
As at 16 July 2015 (31 Asar 2072)
Assets 39,700
Building Vehicles Machinery Office Equipment Others
1. Cost Price
a. Previous Year Balance 109,375,527 - 153,522,309 75,873,828 338,771,664 323,984,087
b. Addition This Year 18,594,800 - 17,361,960 734,945 36,691,705 32,537,476
c. Revaluation/Write Back This Year - - - - - -
d. Sold This Year (13,000,000) - - (13,000,000) (17,710,200)
e. Write off This Year - - (1,425,499) - (1,425,499) -
Total Cost (a+b+c+d+e) - 114,970,327 - 169,458,769 76,608,773 361,037,869 338,811,363
2. Depreciation
a. Up to Previous Year 48,517,100 - 81,581,013 46,203,750 176,301,863 140,061,188
b. For This Year 14,061,528 - 20,939,234 9,264,947 44,265,709 45,654,384
c. Depreciation on Revaluation/Write Back - - - - -
d. Depreciation adjustment/Write Back (7,784,246) - (888,019) - (8,672,266) (9,413,709)
Total Depreciation (a+b+c+d) - 54,794,382 - 101,632,227 55,468,697 211,895,306 176,301,863
3. Book Value (WDV*) (1-2) - 60,175,945 - 67,826,543 21,140,076 149,142,563 162,509,500
4. Land - -
5. Capital Construction (WIP) - - - 75,000 75,000 18,496,597
6. Leasehold Assets - - - 27,862,454 27,862,454 32,771,651 683,269.11
Total (3+4+5+6) - 60,175,945 - 67,826,543 49,077,530 177,080,017 213,777,748
* Written Down Value
Schedule 4.15
Non Banking Assets
As at 16 July 2015 (31 Asar 2072)
Provision Net Non-Banking

Date of Acquisition of Non Total Amount of Non Banking Previous Year
Name & Address of Borrower or Party Assets This Year
Banking Assets Assets Rs.
% Amount Rs. Rs.
B.S.BRICKS AND TILES INDUSTRIES PVT.LTD 26/02/2015 26,807,000.00 100.00 26,807,000.00
RIDDHI GANESH MULTI TRADES PVT. LTD 23/03/2015 27,556,000.00 100.00 27,556,000.00
Grand Total 54,363,000.00 100.00 54,363,000.00 - -

Schedule 4.16
Other Assets
As at 16 July 2015 (31 Asar 2072)
Previous Year
Particulars This Year Rs.
Rs.
1. Stock of Stationery 6,963,965 3,776,492 (6,963,965)
2. Income receivable on Investment 12,710,959 6,554,449 (12,710,959)
3. Interest Receivable on Loan 111,918,647 23,935,070 96,303,455
Less: Interest Suspense Account (87,983,578) (96,303,455)
4. Commission Receivable 121,616 201,905 (121,616)
5. Sundry Debtors 22,105,343 3,414,964 (22,105,343)
6. Staff Loans & Advances 199,180,759 182,040,614 (199,180,759)
7. Prepayments 17,021,995 15,002,500 (17,021,995)
8. Cash in Transit
9. Other Transit items (including Cheques)
10. Drafts paid without notice
11. Expenses not written off
12. Branch Reconciliation Account
13. Deferred Tax Assets 11,449,344 7,854,130 (11,449,344)
14. Others 596,819,137 422,786,268
Advance Income Tax (Net of Provision) -
Bullion Stock Settlement 534,876,008 398,554,113 (534,876,008)
Others 61,943,130 24,232,155 (61,943,130)
Total 890,308,187 641,631,323
Schedule 4.16(A)
Other Assets (Additional Statement)
As at 16 July 2015 (31 Asar 2072)
This Year Rs. Previous Year

Particulars
Up to 1 Year 1 to 3 Year Above 3 Years Total Rs.
1. Accrued Interest Receivable on Loan 105,407,812 6,510,835 111,918,647 96,303,455
2. Drafts Paid without notice -
3. Branch Reconciliation Account -
4. Local/Foreign Agency Account -
Schedule 4.17
Contingent Liabilities
As at 16 July 2015 (31 Asar 2072)

1. Claims on Bank but not accepted by the Bank
2. Letter of Credit (Full Amount) 656,802,410 775,579,409
a. Maturity up to 6 Months 615,267,091 731,044,832
b. Maturity more than 6 Months 41,535,319 44,534,577
3. Rediscounted Bills
4. Unmatured Guarantees/Bonds 641,141,013 475,407,304
a. Bid Bonds 27,292,130 44,945,439
b. Performance Bonds 364,428,883 283,211,865
c. Other Guarantees/Bonds 249,420,000 147,250,000
5. Unpaid Share Investments
6. Forward Exchange Contract Liabilities 1,007,842,797 589,522,824
7. Bills under Collection 1,740,865 8,327,909
8. Acceptance & Endorsement 171,603,866 110,376,522
9. Underwriting Commitment
10. Irrevocable Loan Commitment 942,172,579 748,570,249
11. Guarantee issued against Counter Guarantee of Internationally Rated Banks 1,600,750
12. Advance Payment Guarantee 11,452,000 56,327,038
13. Financial Guarantee
14. Contingent Liabilities on Income Tax 9,921,506
15. Others
Total 3,444,277,786 2,764,111,255
Schedule 4.18
Interest Income

A. On Loans, Advances and Overdraft 1,719,061,777 1,559,257,525
1. Loans & Advances 1,260,806,802 1,200,306,644
2. Overdraft 458,254,975 358,950,881
B. On Investment 15,352,020 37,040,304
1. Nepal Government Securities 13,259,506 28,908,662
a. Treasury Bills 11,884,300 28,908,662
b. Development Bonds 1,375,205
c. National Saving Certificates
2. Foreign Securities
4. Debenture & Bonds -
5. Interbank Investment 2,092,514 8,131,642
a. Bank/Financial Institutions 2,092,514 8,131,642
b. Other Organizations
C. On Agency Balances 68,175 103,341
1. Local Banks/Financial Institutions
2. Foreign Banks 68,175 103,341
D. On Money at Call and Short Notice 59,595,082 21,052,358
1. Local Banks/Financial Institutions 51,612,941 16,480,702
2. Foreign Banks 7,982,142 4,571,656
E. On Others 10,867,084 10,795,335
1. Certificate of Deposits
2. Inter-Bank/Financial Institutions Loan
3. Others 10,867,084 10,795,335
Total 1,804,944,138 1,628,248,863
Schedule 4.19
Interest Expense

A. On Deposits 900,028,806 802,358,844
1. Fixed Deposits 397,923,274 394,394,958
1.1 Local Currency 392,375,117 392,098,308
1.2 Foreign Currency 5,548,157 2,296,650
2. Savings Deposits 239,914,919 257,283,367
2.1 Local Currency 238,901,743 256,632,190
2.2 Foreign Currency 1,013,177 651,177
3. Call Deposits 262,190,613 150,680,519
3.1 Local Currency 261,140,693 150,019,995
3.2 Foreign Currency 1,049,920 660,524
4. Certificate of Deposits
B. On Borrowings 14,250,645 4,667,076
1. Debentures & Bonds
2. Loan from Nepal Rastra Bank 854,795 -
3. Inter Bank /Financial Institutions Borrowing 13,085,615 3,960,753
4. Other Organized Institutions
5. Other Loans 310,235 706,323
C. On Others
Total 914,279,452 807,025,920
Schedule 4.20
Commission and Discount

A. Bills Purchase and Discount 9,750 2,261
1. Local 9,750 2,261
2. Foreign
B. Commission 28,183,475 21,505,508
1. Letters of Credit 12,428,470 7,471,868
2. Guarantees 6,483,351 6,107,496
3. Collection Fees 397,382 313,827
4. Remittance Fees 8,874,272 7,612,317
5. Credit Card
6. Share Underwriting/Issues
7. Government Transactions
8. E.Pra. Commission
9. Exchange Fee
C. Others 7,088,563 5,303,112
Total 35,281,788 26,810,881
Schedule 4.21
Other Operating Income

1. Rental on Safe Deposit Lockers 974,750 869,900
2. Issue and Renewals of Credit Cards
3. Issue and Renewals of ATM Cards 1,820,100 2,140,400
4. Telex / T. T. 2,239,199 1,490,751
5. Service Charges 46,857,297 42,273,380
6. Renewal Fees 10,455,523 6,191,738
7. Others 47,806,487 29,010,127
Total 110,153,355 81,976,296
Schedule 4.22
Exchange Fluctuation Income/ (Loss)

a. Revaluation 2,364,951 1,839,881
b. Trading (except Exchange Fees) 100,016,706 93,448,506
Total Gain/(Loss) 102,381,657 95,288,387
Schedule 4.23
Staff Expenses

1. Salary 103,981,186 94,796,618
2. Allowances 62,153,766 51,753,462
3. Contribution to Provident Fund 6,669,142 5,432,532
4. Training Expenses 2,127,878 2,168,643
5. Uniform 2,719,989 1,128,688
6. Medical - -
7. Insurance 4,888,896 4,048,343
8. Pension and Gratuity Contribution 3,028,720 2,364,574
9. Others 595,855 5,607,400
Total 186,165,432 167,300,260
Schedule 4.24
Other Operating Expense

1. House Rent 49,934,622 43,183,503
2. Light, Electricity and Water 7,737,185 6,816,471
3. Repair & Maintenance 5,745,416 4,146,340
a. Building 2,839,095 1,694,012
b. Vehicles 2,077,368 2,012,946
c. Others 828,953 439,382
4. Insurance 3,622,493 3,888,573
5. Postage, Telex, Telephone & Fax 12,231,460 12,558,022
6. Office Equipment and Furniture Repair 1,761,264 2,416,769
7. Travelling Allowances and Expenses 3,980,777 3,450,731
8. Stationery and Printing 11,836,333 8,955,184
9. Newspaper, Periodicals and Books 262,238 271,916
10. Advertisement 5,643,290 4,761,152
11. Legal Expenses 158,047 266,471
12. Donations 3,636,499 50,000
13. Expenses relating to Board of Directors 5,320,026 2,644,544
a. Meeting Allowance 3,960,000 1,789,500
b. Other Expenses 1,360,026 855,044
14. General Meeting Expenses 1,522,076 992,984
15. Expenses Relating to Audit 734,630 663,300
a. Audit Fees 509,630 463,300
b. Other Expenses 225,000 200,000
16. Commission on Remittances
17. Depreciation on Fixed Assets 43,877,766 45,654,384
18. Amortization of Pre-Operating Expenses -
19. Share Issue expenses - 10,848,497
20. Technical/Consultancy Services Fee 13,298,605 10,014,135
21. Entertainment 1,119,638 834,132
22. Written Off Expenses 20,617,751 19,005,277
23. Security Expenses 23,189,098 22,732,006
24. Credit Guarantee Premium -
25. Commission and Discount 1,250,992 1,079,367
26. Others 55,919,515 44,457,466
a. Fuel 11,874,937 13,129,415
b. Tea/ Coffee/ Snacks 1,725,845 1,752,214
c. Branchless Banking Expense 1,337,331 1,293,791
d. Customer Relations and Sponsorship 2,045,259 2,467,777
e. Registration & Membership 1,269,059 2,965,436
f. Janitorial 1,598,524 1,175,923
g. Card Related 4,659,979 4,106,037
h. Taxes/Fees 2,569,744 3,186,352
i. Deposit Insurance Premium 4,913,799 4,586,654
j. Electronic Clearing Expenses 1,035,817 1,098,330
k. Correspondent / Other Bank Charges 2,468,459 1,913,878
l. Bullion Transporation Charges 16,789,994 4,089,302
m. Others 3,630,767 2,692,357
Total 273,399,722 249,691,224
Schedule 4.25
Provision for Possible Losses

1. Increase in Loan Loss Provision 100,976,665 124,675,094
2. Increase in Provision for Loss in Investments
3. Provision for Non-Banking Assets 54,363,000
4. Provision for Other Assets 153,400 11,490,000
Total 155,493,065 136,165,094
Schedule 4.26
Non-Operating Income/(Expense)

1. Profit/(Loss) on Sale of Investments
2. Profit/(Loss) on Sale of Fixed Assets 26,505 178,998
3. Dividend (Net)
4. Subsidies Received from Nepal Rastra Bank - -
a. Compensation Against Losses of Specified Branches
b. Interest Indemnity
c. Exchange Counter
5. Others 1,035,652 1,622,292
Total Non-Operating Income/(Loss) 1,062,157 1,801,290
Schedule 4.27
Provision for Possible Losses Write Back

1. Write Back from Loans Loss Provision 31,205,326 6,315,680
2. Write Back from Non-Banking Assets Provision
3. Write Back from Investment Provision
4. Write Back from Other Assets Provision
Total 31,205,326 6,315,680
Schedule 4.28
Income/(Expense) from Extra-Ordinary Activities

1. Recovery of Written off Loans
2. Voluntary Retirement Expenses
3. Unrecoverable Loans Written Off [Schedule 4.28 (a)]
4. Other Income/(Expenses) (8,765,603)
Total (8,765,603) -
Schedule 4.28(A)
Statement of Loans Written Off
Type of Basis of Loan Approving

Written off Efforts for
S.No Types of Loan Security Valuation of Authority / Remarks
Amount Rs. recovery of Loans
& Amount Security Designation
1 Working Capital Loan -
2 Project Loan
3 Fixed Capital Loan
4 Personal Loan
5 Other Loans
Total Loan -
Schedule 4.29
Statement of Loans & Advances extended to Directors/ Chief Executive Officer/ Promoters/ Staff and Shareholders
As at 16 July 2015 (31 Asar 2072)
The amount included under total of Bills Purchased and Discounted, Loans, Advances and Overdraft, provided to the Directors, Chief
Executive Officer, Promoters, Staff, Shareholders and to the individual members of their undivided family or against the guarantee of
such persons or to the organizations or companies in which such individuals are managing agent, are as follows:
Rs.
Name of Promoter/Director/ Outstanding up to Last Year Recovered This Year Outstanding as at 16 July 2014
Addition This Year
Chief Executive Officer Principal Interest Principal Interest Principal Interest
A. Directors - - - - - - -
1. - - - - - - -
2. .... - - - - - - -
3. - - - - - - -
B. Chief Executive Officer - - - - - - -
1. - - - - - - -
2. - - - - - - -
3. - - - - - - -
C. Promoters - - - - - - -
1. - - - - - - -
2. - - - - - - -
3. - - - - - - -
D. Employees - - - - - - -
1. - - - - - - -
2. - - - - - - -
3. - - - - - - -
E. Shareholders - - - - - - -
1. - - - - - - -
2. - - - - - - -
3. - - - - - - -
Total - - - - - - -
Note: Loan given to employees as per Employees' Rules and against Fixed Deposits/Government Securities not presented above.
Schedule 4.30 (Ka1)
Capital Adequacy Table
As at 16 July 2015 (31 Asar 2072)
Rs. in Thousands
1.1 Risk Weighted Exposures This Year Previous Year
a Risk Weighted Exposure for Credit Risk 19,371,459 16,253,121
b Risk Weighted Exposure for Operational Risk 1,195,020 814,824
c Risk Weighted Exposure for Market Risk 608,621 395,565
Total Risk Weighted Exposures (Before adjustments of Pillar II) 21,175,100 17,463,511
Adjustments under Pillar - II
Add: 3% of the total RWE due to non compliance to Disclosure Requirement (6.4 a 10)
Add: ..% of the total deposit due to insufficient Liquid Assets (6.4 a 6)
Add 2% of gross income equvalent to reciprocal of capital charge (6.4 a 7) 210,305 170,290
Add 2% of RWE (6.4 a 9) 423,502 349,270
Total Risk Weighted Exposures (After Bank's adjustments of Pillar II) 21,808,907 17,983,071
1.2 Capital Fund This Year Previous Year

Core Capital (Tier 1) 3,049,572 2,724,792
a Paid up Equity Share Capital 2,609,600 2,330,000
b Irredeemable Non-cumulative preference shares
c Share Premium
d Proposed Bonus Equity Shares 260,960 279,600
e Statutory General Reserves 185,076 115,817
f Retained Earnings 5,385 7,229
g This year's profit/(Loss)
h Capital Redemption Reserves
i Capital Adjustment Reserves
j Dividend Equalization Reserve
k Other Free Reserves
l Less: Goodwill
m Less: Deferred Tax Assets 11,449 7,854
n Less: Fictitious Assets
o Less: Investment in equity of licensed Financial Institutions
p Less: Investment in equity of institutions with financial interests
q Less: Investment in equity of institutions in excess of limits
r Less: Investments arising out of underwriting commitments
s Less: Reciprocal crossholdings
t Less: Purchase of land & building in excess of limit & unutilized
u Less: Other Deductions
Adjustment Under Pillar - II
Less: Shortfall In Provision (6.4 a 1)
Less: Loans & Facilities extended to Related Parties & Restricted Lending (6.4 a 2)
Supplementary Capital (Tier 2) 205,119 155,618
a Cumulative and/or Redeemable Preference Share
b Subordinated Term Debt
c Hybrid Capital Instruments
d General loan loss provision 191,262 145,571
e Exchange Equalization Reserve 1,235 644
f Investment Adjustment Reserve
g Assets Revaluation Reserve
h Other Reserves 12,622 9,404
Deferred Tax Reserve 11,449 7,854
Capital Reserve (Deferred Revenue Income Fixed Assets) 1,172 1,550
Total Capital Fund (Tier 1 and Tier 2) 3,254,691 2,880,410
1.3 Capital Adequacy Ratios This Year Previous Year
Tier 1 Capital to Total Risk Weighted Exposures (After Bank's adjustments of Pillar II) 13.98% 15.15%
Tier 1 and Tier 2 Capital to Total Risk Weighted Exposures (After Bank's adjustments
14.92% 16.02%
of Pillar II)
Schedule 4.30 (Kha)
Credit Risk
As at 16 July 2015 (31 Asar 2072)
Rs. in Thousands
2071 Asar End Previous Year
Assets
Book Value Specific Provision Eligible CRM Net Value Risk Weight (%) Risk Weighted Exposure Risk Weighted
Net Value
A. Balance Sheet Exposures a b c d=a-b-c e f=d*e Exposure
Cash Balance 539,386 - - 539,386 0% - 438,654 -

Balance With Nepal Rastra Bank 2,203,294 - - 2,203,294 0% - 1,154,356 -
Gold - - - - 0% - - -
Investment in Nepalese Government Securities 980,260 - - 980,260 0% - 2,187,648 -
All Claims on Government of Nepal - - - - 0% - - -
Investment in Nepal Rastra Bank Securities - - - - 0% - - -
All claims on Nepal Rastra Bank 300,004 - - 300,004 0% - - -
Claims on Foreign Government and Central Bank (ECA Rating: 0-1) - - - - 0% - - -
Claims on Foreign Government and Central Bank (ECA Rating: 2) - - - - 20% - - -
Claims on Foreign Government and Central Bank (ECA Rating: 4-6) - - - - 100% - - -
Claims On BIS, IMF, ECB, EC and on Multilateral Development Banks
- - - - 0% - - -
(MDBs) recognized by the Framework
Claims on Other Multilateral Development Banks - - - - 100% - - -
Claims on Public Sector Entity (ECA 0-1) - - - - 20% - - -
Claims on Public Sector Entity (ECA 2) - - - - 50% - - -
Claims on Public Sector Entity (ECA 3-6) - - - - 100% - - -
Claims on Public Sector Entity (ECA 7) 169,423 - - 169,423 150% 254,135 296,600 444,900
Claims on domestic banks that meet capital adequacy requirements 435,008 - - 435,008 20% 87,002 526,132 105,226
Claims on domestic banks that do not meet capital adequacy
8,407 - - 8,407 100% 8,407 189,133 189,133
requirements
Claims on foreign bank (ECA Rating 0-1) 1,138,656 - - 1,138,656 20% 227,731 691,805 138,361
Claims on foreign bank (ECA Rating 2) 18,273 - - 18,273 50% 9,137 9,508 4,754
Claims on foreign bank (ECA Rating 3-6) - - - - 100% - - -
Claims on foreign bank (ECA Rating 7) - - - - 150% - - -
Claims on foreign bank incorporated in SAARC region operating with a
804,689 - - 804,689 20% 160,938 193,402 38,680
buffer of 1% above their respective regulatory capital requirement
Claims on Domestic Corporates 11,661,803 - - 11,661,803 100% 11,661,803 9,566,248 9,566,248
Claims on Foreign Corporates (ECA 0-1) - - - - 20% - - -
Claims on Foreign Corporates (ECA 2) - - - - 50% - - -
Claims on Foreign Corporates (ECA 3-6) - - - - 100% - - -
Claims on Foreign Corporates (ECA 7) - - - - 150% - - -
Regulatory Retail Portfolio (Not Overdue) 3,511,487 - 25,339 3,486,148 75% 2,614,611 3,035,045 2,276,284
Claims fulfilling all criterion of regulatory retail except granularity - - - - 100% - - -
Claims secured by residential properties 698,432 - - 698,432 60% 419,059 434,625 260,775
Claims not fully secured by residential properties - - - - 150% - - -
Claims secured by residential properties (Overdue) 3,297 - - 3,297 100% 3,297 - -
Claims secured by Commercial real estate 202,082 - - 202,082 100% 202,082 77,045 77,045
Past due claims (except for claim secured by residential properties) 368,013 263,391 - 104,622 150% 156,933 148,844 223,266
High Risk claims 1,060,676 - - 1,060,676 150% 1,591,014 874,817 1,312,225
Investments in equity and other capital instruments of institutions listed in
- - - - 100% - - -
the stock exchange
Investments in equity and other capital instruments of institutions not
- - - - 150% - - -
listed in the stock exchange
Staff loan secured by residential property 121,194 - - 121,194 60% 72,716 104,137 62,482
Interest Receivable/claim on government securities 1,687 - - 1,687 0% - 1,087 -
Cash in transit and other cash items in the process of collection - - - - 20% - - -
Other Assets 1,793,838 911,294 - 882,544 100% 882,544 747,020 747,020
TOTAL 26,019,908 1,174,685 25,339 24,819,884 18,351,408 20,676,106 15,446,400
B. Off Balance Sheet Exposures Net Value Risk Weight Risk Weighted Exposure
Book Value Specific
Provision Eligible CRM d=a-b-c e f=d*e

Revocable Commitments - - - - 0% - - -
Bills Under Collection 1,741 - - 1,741 0% - 8,328 -
Forward Exchange Contract 1,007,843 - - 1,007,843 10% 100,784 589,523 58,952
LC Commitments With Original Maturity Up to 6 months
615,267 - 39,615 575,652 20% 115,130 684,127 136,825
domestic counterparty
foreign counterparty (ECA Rating: 0-1) - - - - 20% - - -
foreign counterparty (ECA Rating: 2) - - - - 50% - - -
foreign counterparty (ECA Rating 7 ) - - - - 150% - - -
LC Commitments With Original Maturity Over 6 months
41,535 - 7,185 34,351 50% 17,175 42,694 21,347
foreign counterparty (ECA Rating: 0-1 ) - - - - 20% - - -
foreign counterparty (ECA Rating: 2 ) - - - - 50% - - -
foreign couterparty (ECA Rating: 3-6 ) - - - - 100% - - -
Bid Bond, Performance Bond and Counter guarantee
391,721 - 57,135 334,586 50% 167,293 285,752 142,876
foreign counterparty (ECA Rating: 3-6) 1,601 - - 1,601 100% 1,601 - -
Underwriting commitments - - - - 50% - - -
Lending of Bank's Securities or Posting of Securities as Collateral - - - - 100% - - -
Repurchase Agreements, Assets sale with recourse - - - - 100% - - -
Advance Payment Guarantee 11,452 - 406 11,046 100% 11,046 49,196 49,196
Financial Guarantee 249,420 - - 249,420 100% 249,420 147,250 147,250
Acceptances and Endorsements 171,604 - 12,359 159,245 100% 159,245 100,561 100,561
Unpaid portion of Partly paid shares and Securities - - - - 100% - - -
Irrevocable Credit commitments (short term) 942,173 - - 942,173 20% 188,435 748,570 149,714
Irrevocable Credit commitments (long term) - - - - 50% - - -
Claims on foreign bank incorporated in SAARC region operating with a
- - - - 20% - - -
buffer of 1% above their respective regulatory capital requirement
Other Contingent Liabilities 9,922 - - 9,922 100% 9,922 - -
Unpaid Guarantee Claims - - - - 200% - - -
TOTAL 3,444,278 - 116,699 3,327,578 1,020,051 2,656,001 806,721
Total RWE for Credit Risk Before Adjustment (A) + (B) 29,464,186 1,174,685 142,038 28,147,463 19,371,459 23,332,107 16,253,121
Adjustment Under Pillar - II
Add: 10% of the loan and facilities in excess of Single Obligor Limit (6.4 a
3)
Add: 1% of the contract(Sale) value in case of the sale of credit with
recourse (6.4 a 4)
Total RWE for Credit Risk (After Bank's Adjustment of Pillar - II) 29,464,186 1,174,685 142,038 28,147,463 19,371,459 23,332,107 16,253,121
Schedule 4.30 (Ga)
Eligible Credit Risk Mitigants (CRM)
As at 16 July 2015 (31 Asar 2072)
Rs. in Thousands
Deposits with G'tee of
Deposits Govt.& NRB Sec/G'tee of G'tee of Sec/G'tee of
Credit exposures other Banks/ Gold Govt. G'tee of MDBs Total
with Bank Securities Other Sovereigns domestic banks Foreign Banks
FIs of Nepal
a b c d e f g h i
Balance Sheet Exposures -
Cash Balance -
Balance With Nepal Rastra Bank -
Gold -
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: 4-6) -
Claims on other Multilateral Development Banks -
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) -
Claims on Foreign Corporates (ECA: 7) -
Regulatory Retail Portfolio (Not Overdue) 25,339 25,339
Regulatory Retail Portfolio (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 -
Investments in equity and other capital instruments of institutions
listed in the stock exchange -
Investments in equity and other capital instruments of institutions
not listed in the stock exchange -
Other Assets -
Subtotal 25,339 - - - - - - - - 25,339
Off Balance Sheet Exposures
Revocable Commitments -
Bills Under Collection -
Forward Exchange Contract -
LC Commitments With Original Maturity Up to 6 months
domestic counterparty 39,615 39,615
foreign counterparty (ECA Rating: 0-1) -
foreign counerparty (ECA Rating: 2) -
foreign counterparty (ECA Rating: 7) -
LC Commitments With Original Maturity Over 6 months
Bid Bond, Performance Bond and Counter guarantee
foreign counteparty (ECA Rating: 2) -
Underwriting commitments -
Lending of Bank's Securities or Posting of Securities as Collateral -

Repurchase Agreements, Assets sale with recourse -
Advance Payment Guarantee 406 406
Financial Guarantee -
Acceptances and Endorsements 12,359 12,359
Unpaid portion of Partly paid shares and Securities -
Irrevocable Credit commitments (short term) -
Irrevocable Credit commitments (long term) -
Claims on foreign bank incorporated in SAARC region operating
with a buffer of 1% above their respective regulatory capital
requirement -
Other Contingent Liabilities -
Subtotal 116,699 - - - - - - - - 116,699
TOTAL CRM 142,038 - - - - - - - - 142,038
Schedule 4.30 (Gha)
Operational Risk
As at 16 July 2015 (31 Asar 2072)
Rs. in Thousands
Years Prior to 16 July 2015

Particulars 16 July 2015 16 July 2014
FY 2070/71 FY 2069/70 FY 2068/69
Net Interest Income 821,223 679,650 390,584 437,897
Commission and Discount Income 26,811 24,397 17,808 16,271
Other Operating Income 81,976 40,751 34,372 37,950
Exchange Fluctuation Income 95,288 59,456 27,649 27,739
Addition/Deduction in Interest Suspense during the period 26,225 47,193 16,658 23,360
Gross income (a) 1,051,523 851,447 487,071 543,216
Alfa (b) 15% 15% 15% 15%
Fixed Percentage of Gross Income [c=(ab)] 157,728.48 127,717 73,061 119,502 81,482
Capital Requirement for operational risk (d) (average of c) 119,502 81,482
Risk Weight (reciprocal of capital requirement of 10%) in times (e) 10 10
Equivalent Risk Weight Exposure [f=(de)] 1,195,020 814,824
Pillar - II Adjustments
Total Credit and Investment (net off Specific Provision) -
Capital Requirement for operational risk (5%) -
Risk Weight (reciprocal of capital requirement of 10%) in times -
Equivalent Risk Weight Exposure [g] -
Equivalent Risk Weight Exposure [h=(f+g)] 1,195,020 814,824
Schedule 4.30 (Nga)
Market Risk
As at 16 July 2015 (31 Asar 2072)
Rs. in Thousands
2072 Asar End
2071 Asar End
Particulars
S.No. Open Position Open Position Relevant Open Relevant Open
(Currency) Revaluation Rate
(FCY) (NPR) Position Position
1 USD (1,073) 101.58 (108,996) 108,996 88,866

2 GBP (161) 158.57 (25,550) 25,550 78,335
3 EUR 231 110.74 25,625 25,625 30,142
4 CAD 4 78.55 302 302 54
5 AUD 1 74.97 67 67 13
6 JPY 21,299 0.82 17,467 17,467 3,110
7 CHF - 106.31 - - -
8 CNY 3 16.36 50 50 0
9 DKK - 14.84 - - -
10 HKD 2 13.11 21 21 -
11 INR 647,953 1.60 1,037,210 1,037,210 584,439
12 QAR 5 27.90 143 143 14
13 SAR 14 27.09 368 368 149
14 SGD 16 74.33 1,214 1,214 5,903
15 SEK - 11.92 - - -
16 AED 4 27.66 119 119 31
17 MYR 3 26.69 88 88 44
18 THB 2 2.97 5 5 31
19 KRW 200 0.09 18 18 -
Total Open Position (a) 668,502 1,217,242 791,131
Fixed Percentage (b) 5% 5%
Capital Charge for Market Risk [c=(ab)] 60,862 39,557
Risk Weight (reciprocal of capital requirement of 10%) in times (d) 10.00 10.00
Equivalent Risk Weight Exposure for Market Risk [e=(cd)] 608,621 395,565
Schedule 4.31
Principal Indicators
FINANCIAL YEAR
Particulars Indicators
2010/11 2011/12 2012/13 2013/14 2014/15
1. Net Profit/Gross Income % 8.54 15.25 22.04 29.75 30.39
2. Earnings Per Share Rs. 1.49 4.41 7.61 13.11 13.27
3. Market Value per Share Rs. - - 449.00 395.00
4. Price Earning Ratio Times - - 34.24 29.77
5. Dividend (including bonus) on share capital % - - 9.00 12.63 10.53
6. Cash Dividend on Share Capital % - - 9.00 0.63 0.53
7. Interest Income/Loans & Advances % 14.59 13.84 11.96 11.04 9.55
8. Employee Expense/Total Operating Expense % 41.00 38.76 36.63 40.12 40.51
9. Interest Expense on Total Deposit and Borrowings % 10.26 8.49 5.49 4.94 4.25
10. Exchange Gain/Total Income % 2.62 5.87 9.28 9.28 8.98
11. Staff Bonus/ Total Employee Expenses % 4.27 9.11 18.54 26.10 26.71
12. Net Profit/Loans & Advances % 0.79 0.96 1.64 2.17 1.95
13. Net Profit/ Total Assets % 0.51 0.66 1.16 1.56 1.38
14. Total Credit/Deposit % 89.63 87.55 93.58 86.78 85.17
15. Total Operating Expenses/Total Assets % 4.18 2.68 2.44 2.13 1.83
16. Adequacy of Capital Fund on Risk Weighted Assets
a. Core Capital % 18.83 18.24 17.24 15.15 13.98
b. Supplementary Capital % 0.53 0.85 0.82 0.87 0.94
c. Total Capital Fund % 19.36 19.09 18.06 16.02 14.92
17. Liquidity (CRR) % 5.18 13.65 14.34 6.94 11.14
18. Non Performing Loans/Total Loans % - 0.49 2.17 2.18 1.75
19. Base Rate % 10.33 8.97 8.48
20. Weighted Average Interest Rate Spread % 2.84 3.31 4.72 4.32 3.62
21. Book Net Worth Rs. 1,711,798,053 1,784,766,699 2,450,322,149 2,741,143,730 3,073,705,102
22. Total Shares Number 16,310,000 16,310,000 23,300,000 23,300,000 26,096,000
23. Net Worth Per Share Rs. 104.95 109.43 105.16 117.65 117.78
24. Total Permanent Staff Number 103 161 235 290 319
Schedule 32
Significant Accounting Policies:
1. General Information:
Mega Bank Nepal Limited (the Bank) is a limited liability company incorporated in Nepal with its
registered office at Kathmandu Metropolitan City Ward No. 1, Kantipath, Kathmandu. The Bank
was registered with Company Registrars Office on Baisakh 5, 2067 B.S. (April 18, 2010) and
obtained its operating license from the Central Bank of Nepal, (Nepal Rastra Bank) on 4th
Shrawan, 2067 B.S. (20th July, 2010) to perform commercial banking activities as a Ka class
financial institution. The Bank commenced its operation from 7th Shrawan, 2067 B.S. (23rd July,
2010). The principal activities of the Bank are to provide all commercial banking services
including agency, trade finance, e-commerce services and trading of gold and silver etc. to its
customers through its Head Office, Branches and ATMs. The financial statements were
approved by the Board of Directors on 21st Mangsir 2072 (7th December 2015) and the Board
acknowledges the responsibility of preparation of financial statements of the Bank.
2. Statement of Compliance:
The financial statements have been prepared in accordance with Nepal Accounting Standards
(NAS) except for exceptions specifically mentioned, Bank and Financial Institution Act, 2063,
Nepal Rastra Bank Directives, the Company Act, 2063 and relevant practices.
3. Basis of Preparation:
The financial statements have been prepared under the historical cost convention and are
presented rounding off in Nepalese Rupees. The preparation of the financial statements in
conformity with NAS require the use of certain critical accounting estimates and also requires the
management to exercise judgment in the process of applying the Banks accounting policies.
Management believes that the estimates used in the preparation of the financial statements are
prudent and reasonable. Future results could differ from these estimates. Any revision to
accounting estimates is recognized prospectively in current and future periods.
4. Significant accounting policies:
The principal accounting policies applied in the preparation of the financial statements of the
Bank are presented below. These policies have been consistently applied to all the years
presented, unless stated otherwise.
4.1. Revenue Recognition:
Revenue comprises of interest income, fees and commission, foreign exchange income,
cards income, income from disposal of assets & liabilities etc. Revenue is recognized to the
extent it is probable that the economic benefits will flow to the Bank and the revenue can be
reliably measured.
a) Interest Income
Interest on loans and advances is recognized on cash basis as per Nepal Rastra Banks
Directive/Circulars which is not in accordance with the requirement of Nepal Accounting
Standard that prescribes recognition of interest on accrual basis considering the
effective interest method. The practice followed by the Bank as per NRB Directives is
more conservative.
Interest income from investments and staff loan under the scheme of the Bank is
recognized on accrual basis.
b) Commission Income
Guarantee commission income above Rs. 100,000 covering more than one accounting
period is recognized on accrual basis, while the rest are recognized as income at the time
of issuance of such guarantee.
c) Foreign Exchange Transaction

Assets and liabilities denominated in foreign currencies are translated at mid-point
exchange rates prevailing on the date of transaction. Net difference arising from the
conversion of foreign currency assets and liabilities is accounted for as revaluation
gain/loss on a daily basis. 25% of the total revaluation gain recognized during a year is
transferred to Exchange Fluctuation Fund through Profit & Loss Appropriation Account
while revaluation loss is charged to profit and loss account directly.
Gain or Loss realized from the difference between buying and selling rates of foreign
currencies is accounted for as trading gain/ (loss) on a daily basis.
4.2. Interest Expense:

Interest liabilities on deposit and borrowings are accounted on accrual basis.
4.3. Loans and Advances Including Bill Purchases:

Loans, Advances & Bills Purchased include direct finance provided to borrowers. These
comprise of short term loans, long term loans, hire-purchase loans, consumer loans and
priority and deprived sector loans. These assets are classified as per Nepal Rastra Bank
Directives. Loans and advances including bills purchased have been presented net of loan
loss provision in the Balance-Sheet.
4.4. Staff Loans and Overdraft:

Loans and advances provided to staff as per the Banks policy (including Accrued Interest
Receivable) are shown under Other Assets.
4.5. Loan Loss Provision:

Loan loss provisions in respect of non-performing advances are based on managements
assessment of the degree of impairment of the advances, subject to the minimum
provisioning level prescribed in relevant NRB guidelines. Provision is made for possible
losses on loans and advances including bills purchased at 1% to 100% on the basis of
classification of loans and advances, overdraft and bills purchased in accordance with the
directives of Nepal Rastra Bank.
4.6. Loans and Advances Write-off:

The Bank has Loan Write-off Byelaw which outlines procedures for write-off. The Bank has
the policy of writing off loans and advances as per the procedures set in the Byelaw in
compliance with Nepal Rastra Bank Directives without prejudice to Banks right to recovery.
No loan has been written-off during the reporting period. Impairment provisions held for the
loss accounts are written back immediately after the loans are written-off. Amounts
recovered against debts written off in earlier years and provisions no longer considered
necessary based on the current status of the borrower are recognized in the Profit and Loss
Account.
4.7. Investment:
Investment in securities is initially measured at cost. Cost of Investment includes purchase
price and other attributable cost. Subsequent measurements are made based on their
classification as Held for Trading, Held to Maturity or Available for Sale.
Held to maturity
Investment such as Government Securities, Bonds, Placements which the Bank has positive
intent and ability to hold till maturity, are classified as Held to Maturity and are carried at
cost; or at amortized cost.
Held for trading

Investment is classified as held for trading if it is acquired for the purpose of generating a
profit from short term fluctuations in price.
Available for sale

Investment that are not classified as held for trading or held to maturity are classified as
available for sale and valued at cost or market value, whichever is lower. Investment
Adjustment Reserve are created on 2% of the Investment classified as available for sale
(AFS) and are marked to market except on investment on shares for which Nepal Rastra
Bank specifically relieves from the requirement.
The Banks entire investment portfolio, except equity investment in shares of Nepal Clearing
House Limited, as of reporting date is classified under Held to Maturity category and
reclassification of investments from one category to the other was not done during the
reporting period.
All investments are subject to regular review according to the Directives of Nepal Rastra
Bank.
4.8. Fixed Assets and Depreciation:
Recognition
The cost of Fixed Assets has been recognized as an asset, if and only if: (a) it is probable
that future economic benefits associated with the item will flow to the entity; and (b) the cost
of the item can be measured reliably and initially recognized at cost.
Fixed Assets are initially recognized at cost and are stated at historical cost less
accumulated depreciation and any impairment losses. Historical cost includes expenditures
that are directly attributable to the acquisition of the assets.
Depreciation
Depreciation on vehicle, furniture and fixtures, office equipment, computer hardware,

other fixed assets and building is calculated on written down value method and
depreciation expense pertaining to the period is charged to Profit and Loss Account. The
depreciation rates applied to various categories are based on the estimate of the
management on assumption of effective useful life of assets; as follows:
S. No. Category Rate
1. Furniture and Fixtures - 25%

2. Vehicles - 20%
3. Office Equipments - 25%
4. Computers and Hardware - 25%
5. Other Fixed Assets - 15%
6. Building - 5%
Depreciation is charged from the date when the asset is ready for put to use as per NAS.
Leasehold improvements are amortized over the maximum period of five years and
reported under Written off Expenses in Schedule 24 (Other Operating Expense).
Non-consumable items having life less than one year or costing less than Rs. 10,000 are
expensed off during the year of purchase. Capital nature expenditures on immovable
Non-consumable items of more than Rs. 3,000 are recognized as fixed assets on the
basis of their useful life and required level of control.
Advance paid to contractors and asset that has not been put to use has been shown
under capital work-in-progress.
Software purchased by the Bank is amortized over a period of 5 years from the date of
purchase. License fees paid by the Bank are amortized over the period of the license.
4.9. Grant Received for Sakchyam Access to Finance Program:
In order to extend various modern and convenient financial services to some Districts of Mid
and Far Western region of Nepal, the Bank has entered into agreement with Sakchyam
Access to Finance Program implemented by Louis Berger for the Department of
International Development (DFID Nepal). Through this agreement, the Bank has received
financial grants. The reimbursement of expenses and fixed assets received has been
accounted in accordance with Nepal Accounting Standard-10 on Government Grants.
Reimbursement received towards purchase of fixed assets has been shown by setting up
the carrying amount of the fixed assets as Capital Reserve.
4.10. Lease Rental:

A lease is an agreement whereby the lessor conveys to lessee in return for a payment/s the
right to use an asset for an agreed period of time. The lease is classified into Finance
Lease and Operating lease.
Finance lease is a lease that transfers substantially all the risk and rewards incidental to
ownership of asset. Title may or may not be eventually be transferred.
The Bank has not entered into any finance lease. The lease agreements entered by the
bank for office premises are operating leases and the related expenses are accounted in
the period in which the lease rentals are paid and reported in Other Operating Expenses
(Schedule 24).
4.11. Retirement Benefits:

The gratuity liability and provident fund contribution from Banks part has been provided on
accrual basis as per the Banks policy. The Provident Fund (both Bank and employee
contribution) is deposited in an approved retirement fund separate from the Banks
management whereas the gratuity liability has been maintained in the Bank itself.
The Bank has made provision for accumulated leave liability as per the provision of
employee service by-law accrued until Ashad End 2072. The provision pertaining to the
reporting period is charged to Profit and Loss Account.
4.12. Income Tax Expenses:

The Income tax expense of the Bank represents the sum of tax currently payable and
deferred Tax.
Current Tax
The tax currently payable is based on the taxable profit for the year. Taxable profit differs
from profit before tax as reported in the Profit & Loss Account because of items of income or
expense that are taxable or deductible in other years and items that are never taxable or
deductible. Provision for current tax has been made with reference to the profit of the
financial year (taxable profit) based on the provisions of the Income Tax Act 2058 and Rules
as amended.
Deferred Tax
Deferred tax is recognized on temporary differences between the carrying amounts of
assets and liabilities in the financial statements and the corresponding tax bases used in the
computation of taxable profit.
Deferred tax liabilities are generally recognized for all taxable temporary differences.
Deferred tax assets are generally recognized for all deductible temporary differences to the
extent that it is probable that taxable profits will be available against which those deductible
temporary differences can be utilized. Such deferred tax assets and liabilities are not
recognized if the temporary difference arises from the initial recognition (other than in a
business combination) of assets and liabilities in a transaction that affects neither the
taxable profit nor the accounting profit. In addition, deferred tax liabilities are not recognized
if the temporary difference arises from the initial recognition of goodwill.
Deferred tax assets and liabilities are measured using enacted tax rates expected to apply
to taxable income in the years in which those temporary differences are expected to be
recovered or settled. The effect of changes in tax rates on deferred tax assets and liabilities
is recognized as income in the period that includes the enactment date.
The principal temporary differences have been created from depreciation of fixed assets,
gratuity & leave provision.
A deferred tax reserve is created earmarking accumulated profit and loss account to the
extent of outstanding balance of Deferred Tax Assets as per NRB guidelines.
4.13. Stationery:
Stationery purchased is accounted for on cost and expensed as and when it is issued for
consumption on first-in-first-out (FIFO) basis. Inventory as at the end of reporting period are
measured at the lower of cost or net realizable value.
4.14. Bullion Stock under Consignment:
The Bank holds precious metals (gold/silver) as a custodian, under consignment

transactions. The risks and rewards of the held assets rests with the consigner. The
settlement outstanding has been shown under Schedule 4.16.
4.15. Non-Banking Assets:
Non-Banking Asset is accounted for at the prevailing market value of the collateral property
or aggregate recoverable amount up to the day before the date of assumption whichever is
lesser. Where the market value of assumed property is less than the total recoverable
amount, the difference amount is charged to Profit and Loss Account in the year of
acquisition. 100% loss provision is maintained for NBA and continues to remain until it is
disposed off. NBA is derecognized at the time of its disposal.
4.16. Staff Bonus:

Provision for staff bonus has been made as per Bonus Act, 2030.
4.17. Other Provision and Contingent Liability and Contingent Assets:

The Bank creates a provision when there is a present obligation as a result of past events
that probably requires an outflow of resources embodying economic benefits and a reliable
estimate can be made of the amount of the obligation.
Provisions are reviewed at each balance sheet date and adjusted to reflect the current best
estimate. If it is no longer probable that an outflow of resources would be required to settle
the obligation, the provision is reversed.
A disclosure for a contingent liability is made when there is a possible obligation or a present
obligation that may, but probably will not, require an outflow of resources.
All letter of credit, bank guarantee and forward exchange contract liabilities have been
shown in full amount as contingent liabilities in accordance with the directive issued by
Nepal Rastra Bank.
Contingent Assets are not recognized however is assessed continually to ensure that
developments are appropriately reflected in the financial statements.
4.18. Impairment of Assets:

The Bank assess at each reporting date whether there is any indication that an asset may
be impaired. If any such indication exists, the Bank estimates the recoverable amount of the
asset. Impairment of assets is recognized when carrying amount of the assets exceeds the
higher of its recoverable amount or value in use and is recognized in profit and loss account.
4.19. Dividend and Proposed Bonus Shares:

The Bank has the policy of recognizing proposed dividend and bonus shares as proposed
by the Board of Directors and recognized in Financial Statement as per the directive of
Nepal Rastra Bank. The practice of recognizing the proposed dividend as liability as a
separate line item in Balance Sheet is not in accordance with the requirement of Nepal
Accounting Standard.
Schedule 33: Notes to Accounts

1. Paid-up Capital:
Paid-up capital of the Bank consists of promoters contribution of 18,267,200 shares of Rs.100
each fully paid and public holding of 7,828,800 shares of Rs. 100 each fully paid, with a total of
26,096,000 shares of Rs. 100 each fully paid amounting Rs. 2,609,600,000.
2. General Reserve:
In accordance to Bank and Financial Institution Act - 2063, the Bank has appropriated 20% of
Net Profit of this year amounting to Rs. 69,259,222 towards General Reserve Fund after which
the total balance in this reserve has reached to Rs. 185,076,195.
3. Capital Reserve:
Capital Reserve consists of the following:
Carrying amount of fixed assets received as grant from various entities total Rs. 1,172,457. The
breakdown of the same is as tabulated hereunder:
Particular Amount Amount

Opening Balance 2,682,960
Addition during FY 2071/72 10,750
Total Fixed Asset Grant Received 2,693,710
Depreciation w/off from Capital
Reserve
FY 2068/69 74,497
FY 2069/70 439,691
FY 2070/71 619,122
FY 2071/72 387,943
Total write off 1,521,253
Net Balance in Capital Reserve 1,172,457
4. Dividend & Bonus Share:

The Board of Directors of the Bank has proposed 10% bonus share and 0.53% cash dividend
(for tax purpose), for distribution for the year ended 16th July 2015 subject to the approval from
Nepal Rastra Bank and General meeting of the Bank.
5. Proposed Staff Bonus:
Provision for staff bonus has been calculated at 10% after adjustment of bonus on profit from all
activities.
6. Staff Housing Fund:

The Bank has been providing housing loan to its employees as per Banks housing loan policy
due to which staff housing fund has not been created as required by the Labour Act.
7. Loans and Advances:

The gross Loans, Advances & Bill Purchases and corresponding provision made thereof is as
follows:
Total Loans and Advances 17,997,278,456

Provision 454,653,003
Net Loans and Advances 17,542,625,452
Provision for possible losses on Loans, Advances & Bill Purchases has been made in
accordance with the Directive of Nepal Rastra Bank.
8. Equity Investment:
The Bank has invested in 23,026 units of equity shares of Nepal Clearing House Limited at face
value of Rs 100 each. The same has been categorized as Available for Sale. However,
Investment Adjustment Reserve (2% of the Investment) for this has not been created as the
same requirement is exempted by Nepal Rastra Bank. All other investments besides this have
been categorized as Held to Maturity.
9. Interest Income and Interest Suspense:

The interest on Loan & Advances accrued up to Ashad end 2072 (16th July, 2015) but realized
within 15th Shrawan 2072 (31st July, 2015) has been recognized as income of Fiscal Year
2071/2072 (2014/2015) in line with the provisions of Unified Directive 2072 issued by Nepal
Rastra Bank. Such realized interest (Rs. 23,935,070) recognized as income has created
difference in interest receivable from loans & advances and interest suspense which can be
reflected in Schedule 4.16.
10. Movement of Gross Loans and Advance:
Particulars 2071/72 2070/71

Loan Disbursed 34,400,912,287 30,608,224,937
Loan Recovered 31,291,912,060 27,456,035,980
Loan Write-off -
Interest Write-off -
11. Movement of Deposit:
The movement of the deposit of the bank is as follows:

Rs.
Changes
Amount %
Current 915,352,022 465,115,603 450,236,419 97
Margin 129,938,705 120,573,028 9,365,677 8
Savings 6,371,715,686 5,874,366,115 497,349,571 8
Fixed Term 7,340,932,819 8,239,751,955 (898,819,136) (11)
Call 6,332,852,593 2,431,006,815 3,901,845,778 161
Others 39,883,300 16,835,335 23,047,965 137
Total Deposits 21,130,675,125 17,147,648,851 3,983,026,274 23
12. Changes in Loan Loss Provision and Interest Suspense:
The change in Loan Loss Provision and interest suspense for the year 2071/72 is as follows:
Rs.
Changes
Amount %
Loan Loss Provision 454,653,003 384,881,663 69,771,340 18.13
Interest Suspense 87,983,578 96,303,455 (8,319,877) (8.64)
13. Tax Assessment:

Large Tax Payers Office has made reassessment of Income Tax filed by the Bank for the year
2067/68. The Bank has applied for Administrative Review of the additional tax liability as
reassessed by the Tax Authority at Inland Revenue Department for reconsideration by depositing
the one third of the disputed amount. Whereas the total disputed amount has been shown as
Contingent Liabilities on Income Tax under Schedule 4.17.
14. Deferred Tax:

Deferred tax has been calculated using the effective tax rate of 30% as per Nepal Accounting
Standard -9 on Income Taxes. The detail of deferred tax calculation is as follows:
Carrying
Particular Tax Base Difference Asset
Amount
Asset
Fixed Assets 175,832,561 177,460,848 (1,628,288) 488,486
Liability
Gratuity 9,854,276 - 9,854,276 2,956,283
Leave Encashment 15,038,515 - 15,038,515 4,511,555
Provision for Asset Receivable 11,643,400 11,643,400 3,493,020
Deferred Tax Asset 11,449,344
Opening Deferred Tax Asset 7,854,130
Deferred Tax Asset Adjustment 3,447,000
Restated opening Balance 11,301,130
Income 148,214
15. Amortization of Leasehold Assets:

The details of amortization of leasehold asset is as follows:
Rs.
Amortization up
Amortization Amortization
Particulars Cost to Previous Balance
This Year Write Back
Year
Leasehold 107,123,199 59,220,974 20,013,662 26,109 27,862,454
16. Weighted Average Interest Rate Spread:
Particulars Percent
Weighted Average Interest Yield on Loans and Investment 7.87

Weighted Average Interest Cost on Deposit and Borrowings 4.25
Spread 3.62
Note: The annual average volumes of loans, investments, deposits and borrowings have
been considered for the above calculation.
17. Concentration of Exposure:
Rs.
Loans Advances & Contingent
Particulars Deposits
Bills Liabilities
Total as on 31st Asar 2072 17,997,278,456 21,130,675,125 1,482,600,039
Highest Exposure on Single Unit 372,930,388 1,367,927,490 152,370,000
Highest % Exposure on Single Unit 2.07% 6.47% 10.28%
18. Reconciliation Status:
Rs.
Particulars Total 1 Year > 1 3 Years > 3 Years
Branch Reconciliation
Agency Reconciliation 159,126,789 148,487,776 10,631,013 8,000
19. Maturity-wise Classification of Assets & Liabilities:
Rs. In Million
1-90 91-180 181-270 271-365 More
S.N. Particulars Total
days days days days than
Assets
1 Cash Balance 539 - - - - 539
2 Balance with Banks & FIs 1,332 - - - 1,165 2,497
3 Investment in Foreign Banks 762 - 152 864 - 1,778
4 Call Money - - - - - -
5 Government Securities - - 33 347 600 980
6 Nepal Rastra Bank Bonds - - - - - -
7 Inter Bank & FI Lending 300 - - - - 300
8 Loans & Advances 3,831 1,316 130 79 12,642 17,997
9 Interest Receivable 60 12 7 3 42 125
10 Reverse Repo - - - - - -
11 Acceptance Receivable - - - - - -
12 Payments under S.No. 20,21 & 22 1,239 431 607 85 63 2,425
13 Others 597 3 - - 528 1,129
Total (A) 8,662 1,761 930 1,377 15,040 27,771
Liabilities
14 Current Deposits 285 19 57 8 716 1,085
15 Saving Deposits (including call) 3,172 - - - 9,532 12,705
16 Fixed Deposits 2,893 209 1,480 2,759 - 7,341
17 Debentures/Bonds - - - - - -
18 Borrowings 148 - - - - 148
Call/Short Notice 147 - - - - 147
Inter-bank/Financial Institutions - - - - - -
Refinance - - - - - -
Others 1 - - - - 1
19 Other Liabilities and Provisions 576 48 27 28 312 992
Sundry Creditors 9 - - - - 9
Bills Payable 72 - - - - 72
Interest Payable 71 - - - - 71
Provisions 290 48 27 13 142 521
Others 135 - - 15 170 320
20 Acceptance Liabilities 172 - - - - 172
21 Irrevocable Loan Commitment 942 - - - - 942
22 Letter of Credit/Guarantee 125 431 607 85 63 1,311
23 Repo - - - - - -
24 Payable under s.no.11 - - - - - -
25 Others - - - - - -
Total (B) 8,313 707 2,172 2,880 10,624 24,696
Net Financial Assets (A-B) 348 1,054 (1,242) (1,502) 4,417 3,075
Cumulative Net Financial Assets 348 1,403 161 (1,342) 3,075
20. Related Parties Disclosures:

A) Key Management Personnel
1. Prof. Dr. Madan Kumar Dahal Chairman
2. Dr. Duman Thapa Director
3. Mr. Bhoj Bahadur Shah Director
4. Mr. Gopal Khanal Director
5. Mr. Madan Kumar Acharya Director
6. Mr. Chet Narayan Pandey Director
7. Mr. Dipendra Agrawal Director
8. Mr. Parameshwar Pant Director
9. Mr. Anil Keshary Shah Chief Executive Officer
B) Compensation to Key Management Personnel

1. Short Term Employee Benefits : Rs. 15,925,000
2. Post-employment benefits : Nil
3. Other long-term benefits : Nil
4. Termination benefits : Nil
5. Share-based payment : Nil
The CEO is provided with vehicle, fuel, driver, security guard facility, reimbursement of
mobile bill and entitlement for statutory bonus as per the service contract.
C) Transaction with Key Management Personnel

1. Meeting Fee provided to the Directors: Rs. 3,960,000/-
i. Board: Rs. 1,904,000/-
ii. Committees/Sub-committees: Rs. 2,056,000/-
2. Other allowances paid : Rs. 540,000/-
21. Borrowing against collateral of Banks own assets:

Except against the collateral of Treasury Bills, the Bank has not availed any other loan against
collateral of Banks own assets.
22. Non-Banking Assets

The Bank has acquired Non-Banking Assets during the year and its accounting has been done in
line with the requirement of Nepal Rastra Bank Directives and presented under Schedule 4.15.
Since the market value of said property is less than the total loan outstanding, the difference of
total loan principal amount granted to the concerned borrower plus other associated expenses
borne by the Bank (to be received from the borrower) from the NBA value has been charged to
Profit & Loss account. This shortfall along with total interest receivable amount has been
capitalized as NBA receivable and provision against the same has been created.
23. Regrouping of Figures:
Previous year figures have been regrouped where ever necessary for appropriate comparison
with current year figures.
24. BASEL DISCLOSURE:
Tier 1 Capital and Breakdown of its Components

Rs.
16.07.2015
Core Capital (Tier 1) 3,049,571,543
a Paid up Equity Share Capital 2,609,600,000
b Proposed Bonus Share 260,960,000
c Statutory General Reserves 185,076,195
d Retained Earnings 5,384,692
e Less: Deferred Tax Assets 11,449,344
Tier 2 Capital and Breakdown of its Components

Rs.
16.07.2015
Supplementary Capital (Tier 2) 205,119,093
a General loan loss provision 191,262,421
b Exchange Equalization Reserves 1,234,871
c Other Reserves 12,621,801
Subordinated Term Debts
None
Deductions from Capital
None
Total Qualifying Capital

Rs.
1 Core Capital (Tier I) 3,049,571,543
2 Supplementary Capital (Tier II) 205,119,093
Total Capital Fund 3,254,690,636
Capital Adequacy Ratio
1 Tier 1 Capital to Total Risk Weighted Exposures 13.98%
Tier 1 and Tier 2 Capital to Total Risk Weighted

2 14.92%
Exposures
Summary of the Banks internal approach to assess the adequacy of its capital to support
current and future activities
The Bank has in place a five year strategic plan which is supplemented by annual budget. These
are strategic documents and provide guidance on the future business prospects of the Bank.
These documents establish the desired nature and size of the business portfolio at a future
period. While preparing these documents, capital assessment is taken as one of the most
important factors. Bank understands the various forms of risks associated with the business and
the importance of capital in mitigating these risks. Hence, the present as well as future capital
requirements of the bank are thoroughly assessed to ensure that it is more than adequate to
support the business needs of the Bank.
The changes in the business environment bring about changes in the risk profile of the Bank.
Hence, periodic reviews are conducted to assess the impact of any such changes in the
environment. Capital adequacy ratios are also computed on a daily basis to ascertain its
adequacy in terms of the associated risks. Furthermore, other quantitative and indicative tools
are also studied and discussed amongst the Management and the Board. Various tools and
indicators have been put into practice for analysis to support the Internal Capital Adequacy
Assessment Process (ICAAP) of the Bank. Moreover, an ICAAP policy has devised and put into
practice for a systematic process of identifying, measuring, monitoring and controlling various
risk aspects as to further put in place a sound capital assessment and management system.
Summary of the terms, conditions and main features of all capital instruments, especially
in case of subordinated term debts including hybrid capital instruments.
None.
Risk Weighted Exposures for Credit Risk, Market Risk and Operational Risk
Rs.
1 Risk Weighted Exposure for Credit Risk 19,371,458,877
2 Risk Weighted Exposure for Operational Risk 1,195,020,357
3 Risk Weighted Exposure for Market Risk 608,621,105
4 Adjustment Under Pillar II 633,806,648
Total Risk Weighted Exposures 21,808,906,987
Risk Weighted Exposures under each of 11 categories of Credit Risk

Rs.
No. Particulars 16.07.2015
1 Claims on govt. and central Bank -
2 Claims on other official entities 254,135,074
3 Claims on Banks 493,213,603
4 Claims on corporate and securities firm 11,661,802,691
5 Claims on regulatory retail portfolio 2,614,611,101
6 Claim secured by residential properties 419,059,494
7 Claims secured by commercial real state 202,081,901
8 Past due Claims 160,230,483
9 High risk claims 1,591,013,753
10 Other Assets 955,260,072
11 Off Balance sheet Items 1,020,050,706
Total 19,371,458,877
Total Risk Weighted exposure calculation table

(Please refer Schedules 4.30(Kha)/(Ga)/(Gha)&(Nga) for detailed calculations.
Amount of NPAs (both Gross and Net)

Rs.
Gross 315,842,727
Net 52,452,145
NPA Ratios (%)

Gross 1.75
Net 0.30
Movement of Non Performing Assets
Rs.
Grade This Year Previous Year
Restructured/Rescheduled
Substandard 19,942,298 25,016,991
Doubtful 74,990,844 132,155,657
Loss 220,909,586 166,979,032
Total NPA 315,842,727 324,151,679
Write off of Loans & Interest Suspense -

Rs.
Particulars This Year Previous Year Changes (%)
Write off Loans & Advaces
Write off Interest
Movement in Loan Loss Provisions and Interest Suspense

Rs.
Particulars This Year Previous Year Changes (%)
Loan Loss Provision 454,653,003 384,881,663 18.13
Interest Suspense 87,983,578 96,303,455 (8.64)
Detail of Additional Loan Loss provision
None
Segregation of Investment Portfolio into Held for Trading, Held to Maturity and Available
for Sale Category
Amount
Investment Portfolio
(Rs.)
Held For Trading -
Held To Maturity 1,991,320,244
Available For Sale 2,302,600
Total 1,993,622,844
Risk Management Function
The Board of Directors and the Management realize the importance of effective risk
management and are keen to the continuous improvement in its risk management function.
Hence, the organizational structure has placed a Risk unit independent from other business
functions with direct reporting to the CEO. The unit is adequately manned and oversees all risk
aspects including but not limited to Credit, Operational and Market risks. Besides this the Bank
has an Internal Audit Department to conduct audit & inspection of various activities of the Bank
and directly reports to the Audit Committee. The Management on regular intervals studies and
makes analysis to identify various inherent risks based on indicative facts, figures and statistics
which is further presented and rigorously discussed in the Risk Management Committee headed
by a non-executive member of the Board, which is further deliberated in the Board. The Internal
Capital Adequacy Assessment Process (ICAAP) policy, a comprehensive risk/capital
management document, acts as a guiding tool for the Bank to effectively manage various
associated risks with the business. With the regular use of various measurement tools, risk
management function has been brought and put into effective practice in the Bank.
Credit Risk:
Bank has placed Credit Risk independent of the business generating units.
Risk Management Committee comprising of non-executive directors has been enacted,
which reviews various risk factors on a periodic basis.
Credit Policy guides all underwriting activities, which is periodically revised to ensure that all
immediate and potential risks are addressed.
Loans and facilities are only sanctioned after the approval of the risk units.
Lending authority is transparently and clearly disseminated to the lending officials.
Review of concentrations and identification of potential as well problematic sectors for
lending are discussed at various committees such Risk Management Committee (RMC),
Asset Liability Management Committee (ALCO).
Credit manuals and product papers are developed and implemented which guides the entire
credit related activities.
Investment portfolio is guided by the Investment policy of the Bank.
Operation Risk:
Bank is committed to continuous strengthening of internal controls.
Standard Operating Procedures for all areas of bank operations have been formulated and
implemented.
Bank has a centralized Operations unit to ensure the consistency and accuracy in
processing transactions as well as to review and identify any potential risk.
Independent Operation Risk unit has been set up which reviews the operations of the Bank in
terms of compliance of internal/external rules and procedures.
Bank has formulated and implemented a comprehensive IT policy to ensure and strengthen
data and network security.
Bank has adopted an internationally acclaimed Flexcube as the core banking software, which
has excellent inbuilt control features. The software has been thoroughly tested and
customized as per our requirements; balancing both the business requirements and its
control features. Large extent of the MIS requirements has been automated and efforts are
always underway for further development/enhancement.
In order to continuously improve the capabilities of the employees, training calendars are
developed and implemented based on their need assessments.
Market Risk:
The major sources of market risk for the bank are interest rate risk, exchange rate risk and
liquidity risk.
Bank has developed and implemented policies and guidelines to mitigate these risks.
Bank has an Assets Liability Committee which meets regularly to identify and manage these
risks as per the laid down policies and procedures.
Types of eligible credit risk mitigants used and the benefits availed under CRM
Deposit with Bank : Rs. 142,038,305

Place: Kathmandu
Schedule 4.34
Mega Bank Limited
Statement of Loans availed by promoters / shareholders classified under promoters' group from other banks and financial institutions by
pledging shares under their ownership
As at 16 July 2015 (31 Asar 2072)
Shares registered in the name of
Promoters / Shareholders Statement of Loans
promoters
S. No. classified under Promoters Remarks
Total No. of % on total paid up Name of Banks / Financial Loan Amount No. of Shares
group
Shares capital Institution providing loans pledged
Note: Not applicable

Schedule 4.35
Comparison of Unaudited and Audited Financial Statement of FY 2071/72
Rs. In '000
As per As per Audited Variance
Unaudited
S.N. Particulars Financial Reasons for Variance
Financial In Amount In %
Statement Statement
1. Total Capital and Liabilities (1.1 to 1.7) 24,664,433 24,707,203 42,770 0.17
1.1 Paid up Capital 2,609,600 2,870,560 260,960 10.00 Proposed Bonus Share
Proposed Bonus Share; Change in tax liability and additional
1.2 Reserve and Surplus 478,327 204,318 (274,010) (57.28)
Loan Loss Provision
1.3 Debenture and Bond - - -
1.4 Borrowings 148,234 148,234 - -
1.5 Deposits (a+b) 21,130,675 21,130,675 (0) (0.00)
a. Domestic Currency 19,848,959 19,848,959 (0) (0.00)
b. Foreign Currency 1,281,716 1,281,716 - -
1.6 Income Tax Liability 5,489 4,937 (552) (10.06) Change in tax liability
Proposed Cash Dividend; Accounting adjustment of NBA
1.7 Other Liabilities 292,107 348,479 56,372 19.30
related receivable and regrouping of Bank Balance
2. Total Assets (2.1 to 2.7) 24,664,433 24,707,203 42,770 0.17
2.1 Cash and Bank Balance 3,035,262 3,036,462 1,200 0.04 Regrouping of Bank Balance
2.2 Money at Call and Short Notice 1,067,104 1,067,104 0 0.00
2.3 Investments 1,993,623 1,993,623 - -
2.4 Loans and Advances (a+b+c+d+e+f) 17,542,669 17,542,625 (43) (0.00) Additional Provisioning
a. Real Estate Loan 558,542 558,542 - -
1. Residential Real Estate Loan (Except Personal Home Loan upto Rs. 1 Crore) 171,562 171,562 - -
2. Business Complex & Residential Apartment Construction Loan 115,255 115,255 - -
3. Income Generating Commercial Complex Loan - - -
4. Other Real Estate Loan (Including Land Purchase & Plotting) 271,724 271,724 - -
b. Personal Home Loan of Rs. 1 Crore or Less 585,945 585,945 - -
c. Margin Type Loan 14,950 14,950 - -
d. Term Loan 2,663,823 2,663,823 - -
e. Overdraft Loan/TR Loan/WC Loan 10,602,346 10,602,319 (27) (0.00) Additional Provisioning
f. Others 3,117,063 3,117,047 (16) (0.00) Additional Provisioning
2.5 Fixed Assets 177,080 177,080 (0) (0.00)
2.6 Non Banking Assets -
Accounting adjustment of NBA related receivable and
2.7 Other Assets 848,695 890,308 41,614 4.90
change in Deferred Tax
3. Profit and Loss Account
3.1 Interest Income 1,804,944 1,804,944 - -
3.2 Interest Expense 914,279 914,279 (0) (0.00)
A Net Interest Income (3.1-3.2) 890,665 890,665 0 0.00
3.3 Fees, Commission and Discount 35,282 35,282 - -
3.4 Other Operating Income 109,248 110,153 905 0.83 Regrouping of expense write back
3.5 Foreign Exchange Gain/Loss (Net) 102,382 102,382 - -
B Total Operating Income (A+3.3+3.4+3.5) 1,137,576 1,138,481 905 0.08
3.6 Staff Expenses 185,260 186,165 905 0.49 Regrouping of expense write back
3.7 Other Operating Expenses 273,976 273,400 (576) (0.21) Regrouping of expenses incurred for NBA
C Operating Profit Before Provision (B-3.6-3.7) 678,340 678,916 576 0.08
3.8 Provision for Possible Losses 155,450 155,493 43 0.03 Additional Provisioning
D Operating Profit (C-3.8) 522,890 523,423 533 0.10
3.9 Non Operating Income/(Expenses) Net 1,062 1,062 - -
3.10 Write Back of Provision for Possible Loss 31,205 31,205 0 0.00
E Profit from Regular Activities (D+3.9+3.10) 555,158 555,691 533 0.10
3.11 Extra Ordinary Income/Expenses (Net) (8,189) (8,766) (576) 7.04 Regrouping of expenses incurred for NBA
F Profit Before Bonus and Taxes (E+3.11) 546,968 546,925 (43) (0.01)
3.12 Provision for Staff Bonus 49,724 49,720 (4) (0.01)
3.13 Provision for Tax 151,633 150,909 (724) (0.48) Change in Tax Liability
G Net Profit/(Loss) (F-3.12-3.13) 345,611 346,296 685 0.20
Schedule 4.a
Unaudited Financial Results (Quarterly)
As at end of 4th Quarter (31/03/2072) of the Fiscal Year 2071/2072
Rs. in '000
Corresponding
This Quarter Previous Quarter
S.N. Particulars Previous Year
Ending Ending
Quarter Ending
1. Total Capital and Liabilities (1.1 to 1.7) 24,664,433 24,901,409 20,571,238
1.1 Paid up Capital 2,609,600 2,609,600 2,609,600
1.2 Reserve and Surplus 478,327 396,452 133,093
1.3 Debenture and Bond - - -
1.4 Borrowings 148,234 382,144 379,632
1.5 Deposits (a+b) 21,130,675 21,239,543 17,147,649
a. Domestic Currency 19,848,959 20,052,439 16,638,451
b. Foreign Currency 1,281,716 1,187,103 509,198
1.6 Income Tax Liability 5,489 1,789 11,084
1.7 Other Liabilities 292,107 271,881 290,180
2. Total Assets (2.1 to 2.7) 24,664,433 24,901,409 20,571,238
2.1 Cash and Bank Balance 3,035,262 814,042 1,831,591
2.2 Money at Call and Short Notice 1,067,104 3,116,975 880,502
2.3 Investments 1,993,623 2,023,240 2,507,410
2.4 Loans and Advances (a+b+c+d+e+f) 17,542,669 18,008,320 14,496,326
a. Real Estate Loan 558,542 480,307 356,880
1. Residential Real Estate Loan (Except Personal Home Loan upto Rs. 1 Crore) 171,562 116,932 96,510
2. Business Complex & Residential Apartment Construction Loan 115,255 88,333 76,275
3. Income Generating Commercial Complex Loan - - -
4. Other Real Estate Loan (Including Land Purchase & Plotting) 271,724 275,041 184,095
b. Personal Home Loan of Rs. 1 Crore or Less 585,945 553,621 417,005
c. Margin Type Loan 14,950 11,989 -
d. Term Loan 2,663,823 2,655,104 2,157,248
e. Overdraft Loan/TR Loan/WC Loan 10,602,346 11,271,384 9,128,967
f. Others 3,117,063 3,035,915 2,436,226
2.5 Fixed Assets 177,080 185,421 213,778
2.6 Non Banking Assets -
2.7 Other Assets 848,695 753,410 641,631
Up to
Up to This Up to Previous Corresponding
3. Profit and Loss Account
Quarter Quarter Previous Year
Quarter
3.1 Interest Income 1,804,944 1,301,223 1,628,249
3.2 Interest Expense 914,279 656,935 807,026
A Net Interest Income (3.1-3.2) 890,665 644,287 821,223
3.3 Fees, Commission and Discount 35,282 25,791 26,811
3.4 Other Operating Income 109,248 89,701 81,976
3.5 Foreign Exchange Gain/Loss (Net) 102,382 83,829 95,288
B Total Operating Income (A+3.3+3.4+3.5) 1,137,576 843,608 1,025,299
3.6 Staff Expenses 185,260 137,299 167,300
3.7 Other Operating Expenses 273,976 191,645 249,691
C Operating Profit Before Provision (B-3.6-3.7) 678,340 514,664 608,307
3.8 Provision for Possible Losses 155,450 87,302 136,165
D Operating Profit (C-3.8) 522,890 427,362 472,142
3.9 Non Operating Income/(Expenses) Net 1,062 518 1,801
3.10 Write Back of Provision for Possible Loss 31,205 6,316
E Profit from Regular Activities (D+3.9+3.10) 555,158 427,880 480,259
3.11 Extra Ordinary Income/Expenses (Net) (8,189) (8,189) -
F Profit Before Bonus and Taxes (E+3.11) 546,968 419,690 480,259
3.12 Provision for Staff Bonus 49,724 38,154 43,660
3.13 Provision for Tax 151,633 114,461 131,062
G Net Profit/(Loss) (F-3.12-3.13) 345,611 267,076 305,537
At the End of
At the End of At the End of Corresponding
4. Ratios (%)
This Quarter Previous Quarter Previous Year
Quarter
4.1 Capital Fund to RWE 14.99 14.39 16.06
4.2 Non Performing Loan (NPL) to Total Loan 1.75 1.64 2.18
4.3 Total Loan Loss Provision to Total NPL 143.94 138.57 118.74
4.4 Cost of Funds 4.25 4.10 4.94
4.5 Credit to Deposit Ratio (Calculated as per NRB Directives) 76.44 78.83 75.50
4.6 Base Rate 8.48 7.65 8.97

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Mega Bank Nepal Limited

Assets Schedule This Year Rs. Previous Year Rs.

Schedules 4.1 to 4.17 form integral part of the Balance Sheet.

As per our report

Dipendra Agarwal Parameshwar Pant Ramesh Khadka

Date: 21st Mangsir 2072

Particulars Schedule This Year Rs. Previous Year Rs.

3. Commission and Discount 4.20 35,281,788 26,810,881

6. Staff Expenses 4.23 186,165,432 167,300,260

9. Provision for Possible Losses 4.25 155,493,065 136,165,094

10. Non Operating Income /(Expense) 4.26 1,062,157 1,801,290

12. Income/(Expense) from Extra-ordinary Activities 4.28 (8,765,603) -

13. Provision for Staff Bonus 49,720,468 43,659,900

Net Profit/(Loss) 346,296,108 305,537,370

As per our report

Dipendra Agarwal Parameshwar Pant Ramesh Khadka

Date: 21st Mangsir 2072

Particulars Schedule This Year Rs. Previous Year Rs.

As per our report

Dipendra Agarwal Parameshwar Pant Ramesh Khadka

Opening Balance 2,609,600,000 7,228,993 115,816,974 1,549,650 - 643,633 7,854,130 - 2,742,693,380

As per our report

Dipendra Agarwal Parameshwar Pant Ramesh Khadka

Date: 21st Mangsir 2072

Particulars This Year Rs. Previous Year Rs.

As per our report

Dipendra Agarwal Parameshwar Pant Ramesh Khadka

Date: 21st Mangsir 2072

Particulars This Year Rs. Previous Year Rs.

Details of Shareholders Holding 0.5% Shares

Particulars This Year Rs. Previous Year Rs.

Particulars This Year Rs. Previous Year Rs.

Particulars This Year Rs. Previous Year Rs.

Particulars This Year Rs. Previous Year Rs.

Particulars This Year Rs. Previous Year Rs.

Particulars This Year Rs. Previous Year Rs.

Particulars This Year Rs. Previous Year Rs.

Particulars This Year Rs. Previous Year Rs.

Purpose Previous Year

Cost Price As Per Market This Year Previous Year

2. Investment in Debentures and Bonds - - - - -

Total Investment 2,302,600 - - 2,302,600 2,302,600

Cost Price Impairment Profit / (Loss)

Loans & Advances Bills Purchased & Discounted

Particulars This Year Rs. Previous Year Rs.

Provision Net Non-Banking

Grand Total 54,363,000.00 100.00 54,363,000.00 - -

This Year Rs. Previous Year

Particulars This Year Rs. Previous Year Rs.

Particulars This Year Rs. Previous Year Rs.

Particulars This Year Rs. Previous Year Rs.

Particulars This Year Rs. Previous Year Rs.

Particulars This Year Rs. Previous Year Rs.

Particulars This Year Rs. Previous Year Rs.

Particulars This Year Rs. Previous Year Rs.

Particulars This Year Rs. Previous Year Rs.

Particulars This Year Rs. Previous Year Rs.

Particulars This Year Rs. Previous Year Rs.

Particulars This Year Rs. Previous Year Rs.

Particulars This Year Rs. Previous Year Rs.

Type of Basis of Loan Approving

As at 16 July 2015 (31 Asar 2072)

1.2 Capital Fund This Year Previous Year