INTERIM FINANCIAL STATEMENTS

AS ON ASHWIN END 2077

 Citizens Bank International Limited
Condensed Consolidated Statement of Financial Position
As on Quarter ended Ashwin 2077
Amount in NPR
N Group Bank
o
t This Quarter Immmediate Previous Immmediate Previous year
e ending year ending This Quarter ending ending
Assets
Cash And Cash Equivalent 8,565,876,571 10,847,179,498 8,645,639,286 10,841,972,930
Due From Nepal Rastra Bank 2,772,392,410 2,430,001,128 2,772,392,410 2,430,001,128
Placement With Bank And Financial Institutions 3,287,876,123 302,681,924 3,287,876,123 302,681,924
Derivative Financial Instruments 37,534,687 1,029,497 37,534,687 1,029,497
Other Trading Assets 193,861,244 136,860,173 111,477,630 90,624,023
Loans And Advances To B/FIs 1,736,569,654 1,534,103,548 1,736,569,654 1,534,103,548
Loans And Advances To Customers 82,648,623,766 78,976,395,245 82,648,623,766 78,976,395,245
Investment Securities 15,153,184,222 11,860,108,562 15,121,408,222 11,828,332,562
Current Tax Assets - 155,473,891 - 142,488,502
Investment In Susidiaries 4.10 - - 167,204,200 167,204,200
Investment In Associates 34,693,285 34,693,285 18,951,500 18,951,500
Investment Property 177,374,958 195,532,789 177,374,958 195,532,789
Property And Equipment 2,545,458,664 2,559,426,140 2,540,645,074 2,554,050,177
Goodwill And Intangible Assets 75,056,245 76,446,802 74,037,527 75,322,689
Deferred Tax Assets - - - -
Other Assets 1,622,849,385 1,414,650,847 1,740,057,799 1,391,992,009
Total Assets 118,851,351,214 110,524,583,329 119,079,792,836 110,550,682,723
Liabilities
Due To Bank And Financial Institutions 2,342,909,307 3,688,903,954 2,342,909,307 3,688,903,954
Due To Nepal Rastra Bank 30,940,454 567,577,082 30,940,454 567,577,082
Derivative Financial Instruments - - - -
Deposits From Customers 4.20 97,540,613,289 88,173,854,887 97,940,621,561 88,496,228,464
Borrowing - - - -
Current Tax Liabilities 57,129,746 - 70,351,349 -
Provisions 5,307,266 5,306,626 5,307,266 5,306,626
Deferred Tax Liabilities 17,241,018 12,937,113 18,049,874 13,613,542
Other Liabilities 1,799,118,698 1,551,825,562 1,753,218,604 1,386,951,527
Debt Securities Issued 2,974,731,311 2,974,381,302 2,974,731,311 2,974,381,302
Subordinated Liabilities - - - -
Total Liabilities 104,767,991,089 96,974,786,526 105,136,129,726 97,132,962,497
Equity
Share Capital 9,089,817,290 9,089,817,290 9,089,817,290 9,089,817,290
Share Premium 4,124,402 4,124,402 4,124,402 4,124,402
Retained Earnings 979,340,011 962,810,346 943,723,137 931,156,947
Reserves 3,912,038,156 3,397,893,748 3,905,998,281 3,392,621,587
Total Equity Attributable To Equity Holders 13,985,319,859 13,454,645,786 13,943,663,110 13,417,720,226
Non-Controlling Interest 98,040,266 95,151,017 - -
Total Equity 14,083,360,125 13,549,796,803 13,943,663,110 13,417,720,226
Total Liabilities And Equity 118,851,351,214 110,524,583,329 119,079,792,836 110,550,682,723
 Citizens Bank International Limited
Condensed Consolidated Statement of Profit or Loss
For the Quarter ended Ashwin 2077
Amount in NPR
Group Bank
Particulars Current Year Previous Year Current Year Previous Year
Corresponding Period Corresponding Period
Upto This Quarter Upto This Quarter Upto This Quarter Upto This Quarter
This Quarter (YTD) This Quarter (YTD) This Quarter (YTD) This Quarter (YTD)
Interest Income 2,581,210,461 2,581,210,461 2,354,356,815 2,354,356,815 2,580,333,420 2,580,333,420 2,353,414,551 2,353,414,551
Interest Expense (1,737,241,196) (1,737,241,196) (1,640,883,772) (1,640,883,772) (1,741,160,903) (1,741,160,903) (1,645,089,436) (1,645,089,436)
Net Interest Income 843,969,265 843,969,265 713,473,043 713,473,043 839,172,517 839,172,517 708,325,115 708,325,115
Fee And Commission Income 187,022,958 187,022,958 164,139,754 164,139,754 179,786,486 179,786,486 155,913,320 155,913,320
Fee And Commission Expense (9,411,985) (9,411,985) (11,065,617) (11,065,617) (9,436,985) (9,436,985) (10,217,957) (10,217,957)
Net Fee And Commission Income 177,610,973 177,610,973 153,074,137 153,074,137 170,349,501 170,349,501 145,695,363 145,695,363
Net Interest, Fee And Commission Income 1,021,580,238 1,021,580,238 866,547,180 866,547,180 1,009,522,018 1,009,522,018 854,020,478 854,020,478
Net Trading Income 151,891,406 151,891,406 61,723,137 61,723,137 147,010,868 147,010,868 59,867,897 59,867,897
Other Operating Income 25,879,635 25,879,635 23,038,431 23,038,431 25,879,635 25,879,635 23,038,431 23,038,431
Total Operating Income 1,199,351,279 1,199,351,279 951,308,748 951,308,748 1,182,412,521 1,182,412,521 936,926,806 936,926,806
Impairment (Charge)/Reversal For Loans And Other Losses 25,155,722 25,155,722 (33,853,881) (33,853,881) 25,155,722 25,155,722 (33,853,881) (33,853,881)
Net Operating Income 1,224,507,001 1,224,507,001 917,454,867 917,454,867 1,207,568,243 1,207,568,243 903,072,925 903,072,925
Operating Expense
Personnel Expenses (292,465,861) (292,465,861) (251,031,244) (251,031,244) (289,335,672) (289,335,672) (248,621,387) (248,621,387)
Other Operating Expenses (129,846,182) (129,846,182) (120,883,705) (120,883,705) (127,970,923) (127,970,923) (114,760,239) (114,760,239)
Depreciation & Amortisation (57,917,638) (57,917,638) (50,924,892) (50,924,892) (57,185,836) (57,185,836) (50,477,319) (50,477,319)
Operating Profit 744,277,320 744,277,320 494,615,026 494,615,026 733,075,812 733,075,812 489,213,980 489,213,980
Non Operating Income 1,084,278 1,084,278 6,886,428 6,886,428 3,483,228 3,483,228 9,599,428 9,599,428
Non Operating Expense - - - - - - - -
Profit Before Income Tax 745,361,598 745,361,598 501,501,454 501,501,454 736,559,040 736,559,040 498,813,408 498,813,409
Income Tax Expense
Current Tax (222,149,834) (222,149,834) (150,450,436) (150,450,436) (220,967,712) (220,967,712) (149,644,022) (149,644,022)
Deferred Tax - - - - - - - -
Profit( Loss) For The Period 523,211,764 523,211,764 351,051,018 351,051,018 515,591,328 515,591,328 349,169,386 349,169,387

Profit Attributable To:

Equity Holders Of The Bank 520,322,515 520,322,515 350,612,542 350,612,542 515,591,328 515,591,328 349,169,386 349,169,387
Non-Controlling Interest 2,889,249 2,889,249 438,475 438,475
Profit For The Period 523,211,764 523,211,764 351,051,017 351,051,017 515,591,328 515,591,328 349,169,386 349,169,387
 Citizens Bank International Limited
Condensed Consolidated Statement of Comprehensive Income
For the Quarter ended Ashwin 2077
Amount in NPR
Group Bank
Particulars Current Year Previous Year Current Year Previous Year
Corresponding Corresponding
Up to This Quarter Up to This Up to This Quarter Up to This Quarter
This Quarter (YTD) This Quarter Quarter (YTD) This Quarter (YTD) This Quarter (YTD)
Profit or Loss for the Period 523,211,764 523,211,764 351,051,017 351,051,017 515,591,328 515,591,328 349,169,385 349,169,385
Other Comprehensive Income
a) Items that will not be reclassified to profit or loss
Gains/(losses) from investments in equity instruments measured at fair value 14,787,438 14,787,438 (16,315,062) (16,315,062) 14,787,438 14,787,438 (16,315,062) (16,315,062)
Gains/(losses) on revalution - - - - - -
Actuarial gains/(losses) on defined benefit plans - - - - - - - -
Income tax relating to above items (4,436,231) (4,436,231) 4,894,519 4,894,519 (4,436,231) (4,436,231) 4,894,519 4,894,519
Net other comprehsive income that will not be reclassified to profit or loss 10,351,207.00 10,351,207.00 (11,420,543) (11,420,543) 10,351,207.00 10,351,207.00 (11,420,543) (11,420,543)
b) Items that are or may be reclassified to profit or loss
Gains/(losses) on cash flow hedge - - - - -
Exchange gains/(losses) (arising from translating financial assets of foreign operation) - - - - -
Income tax relating to above items - - - - -
Net other comprehsive income that are or may be reclassified to profit or loss
c) Share of other comprehensive income of associate accounted as per equity method
Other Comprehensive Income For The Period, Net Of Income Tax 10,351,207 10,351,207 (11,420,543) (11,420,543) 10,351,207 10,351,207 (11,420,543) (11,420,543)
Total Comprehensive Income For The Period 533,562,970 533,562,970 339,630,474 339,630,474 525,942,534 525,942,534 337,748,842 337,748,842

Profit Attributable To:

Equity Holders Of The Bank 530,673,721 530,673,721 339,191,998 339,191,998 525,942,534 525,942,534 337,748,842 337,748,842
Non-Controlling Interest 2,889,249 2,889,249 438,475 438,475 - - - -
Total 533,562,970 533,562,970 339,630,473 339,630,473 525,942,534 525,942,534 337,748,842 337,748,842

Earnings Per Share

Basic Earnings Per Share 5.76 4.07 5.67 4.05
Annualized Basic Earnings Per Share 23.02 16.29 22.69 16.20
Diluted Earnings Per Share 23.02 16.29 22.69 16.20
 Ratios as per NRB Directives
Group Bank
Particulars Current Year Previous Year Current Year Previous Year
Corresponding Corresponding
Up to This Up to This Up to This Up to This
Quarter This Quarter This Quarter This Quarter
This Quarter (YTD) Quarter (YTD) Quarter (YTD) Quarter (YTD)
Capital fund to RWA 14.54% 12.85% 14.38% 12.66%
Non-Performing loan(NPL) to Total Loan 1.43% 0.98% 1.43% 0.98%
Total Loan loss provision to Total NPL 166.69% 196.15% 166.69% 196.15%
Cost of Funds 6.79% 8.30% 6.79% 8.30%
Credit to Deposit Ratio 73.50% 78.41% 73.50% 78.41%
Base Rate 8.81% 10.75% 8.81% 10.75%
Interest Spread Rate 4.40% 4.16% 4.40% 4.16%
 Citizens Bank International Limited
Condensed Consolidated Statement of Changes in Equity
For the Quarter ended Ashwin 2077
Amount in NPR
Group
Attributable to Equity Holders of the Group
Non-
Exchange Controlling Total Equity
Regulatory Revaluation
Share Capital Share Premium General Reserve Equalisation Fair Value Reserve Retained Earning Other Reserve Total
Reserve Reserve Interest
Reserve
Balance at Shrawan 1, 2076 8,371,064,773 46,816,126 1,484,944,421 41,009,338 486,287,496 60,856,958 343,854,012 1,267,705,675 410,525,314 12,513,064,113 83,670,387 12,596,734,500
Adjustment 477,125 477,125 477,125
Profit for the Period 1,219,083,658 - 1,219,083,658 9,143,730 1,228,227,388
Other Comprehensive income 54,456,845 - (17,412,759) 37,044,086 - 37,044,086
Total Comprehensive income - - - - - 54,456,845 - 1,219,083,658 (17,412,759) 1,256,127,744 9,143,730 1,265,271,474
Transfer to reserve during the year - - 241,909,674 17,897,978 25,607,789 - 43,905,624 (436,684,796) 107,363,731 - - -
Transfer from reserve during the year - - - - (117,134,986) - - 124,006,571 (6,871,585) - - -
Contributions from and distributtion to owners
Transferred from acquired institute, Business combination 467,620,574 4,124,402 158,948,970 57,222,209 - 3,620,177
Share issued 46,816,126 (46,816,126) - - - - - - - - - -
Share based payments - - -
Dividends to equity holders - - - - - - - - - - -
Bonus shares issued 204,315,817 - - - - - - (204,315,817) - - - -
Cash dividend paid - - - - - - - (1,004,527,773) - (1,004,527,773) - (1,004,527,773)
Other - - - - - - - (2,934,318) 902,542 (2,031,776) 2,336,905 305,129
Total contributions by and distributions 718,752,517 (42,691,724) 158,948,970 - 57,222,209 - - (1,211,777,908) 4,522,719 (315,023,217) 2,336,905 (312,686,312)
Balance at Ashad end 2077 9,089,817,290 4,124,402 1,885,803,065 58,907,316 451,982,508 115,313,803 387,759,636 962,810,325 498,127,420 13,454,645,785 95,151,017 13,549,796,802

Balance at Shrawan 1, 2077 9,089,817,290 4,124,402 1,885,803,065 58,907,316 451,982,508 115,313,803 387,759,636 962,810,325 498,127,420 13,454,645,765 95,151,017 13,549,796,782
Adjustment (1) - 1 - - - - 372 - 372 - 372
Adjusted Balance on Shrawan 1, 2077 9,089,817,289 4,124,402 1,885,803,066 58,907,316 451,982,508 115,313,803 387,759,636 962,810,697 498,127,420 13,454,646,137 95,151,017 13,549,797,154
Profit for the year 520,322,515 520,322,515 2,889,249 523,211,764
Other Comprehensive income 10,351,207 - - 10,351,207 10,351,207
Total Comprehensive income - - - - - 10,351,207 - 520,322,515 - 530,673,722 2,889,249 533,562,971
Transfer to reserve during the year - - 103,816,187 2,858,431 341,759,715 - - (517,948,569) 69,514,237 1 1
Transfer from reserve during the year - - - - (11,439,433) - - 14,155,368 (2,715,935) - -
Contributions from and distributtion to owners - -
Share issued - - - - - - - - - - -
Share based payments - -
Dividends to equity holders - - - - - - - - - -
Bonus shares issued - - - - - - - - - - - -
Cash dividend paid - - - - - - - - - - -
Other - - - - - - - - - - - -
Total contributions by and distributions - - - - - - - - - - - -
Balance at Ashwin end 2077 9,089,817,289 4,124,402 1,989,619,253 61,765,747 782,302,790 125,665,010 387,759,636 979,340,010 564,925,722 13,985,319,859 98,040,266 14,083,360,124
 Bank
Attributable to Equity Holders of the Group
Non-
Exchange
Regulatory Revaluation Controlling Total Equity
Share Capital Share Premium General Reserve Equalisation Fair Value Reserve Retained Earning Other Reserve Total
Reserve Reserve Interest
Reserve
Balance at Shrawan 1, 2076 8,371,064,773 46,816,126 1,484,944,421 41,009,338 486,287,496 60,856,958 343,854,012 1,251,267,351 408,526,184 12,494,626,660
Adjustment 477,125
Profit for the year 1,198,504,659 1,198,504,659
Other Comprehensive income 54,456,845 - (17,353,631) 37,103,214
Total Comprehensive income - - - - - 54,456,845 - 1,198,504,659 (17,353,631) 1,235,607,873
Transfer to reserve during the year 239,700,932 17,897,978 25,607,789 43,905,624 (434,255,179) 107,142,857 1
Transfer from reserve during the year (117,134,986) 124,006,571 (6,871,585) -
Contributions from and distributtion to owners -
Transferred from acquired institute, Business combination 467,620,574 4,124,402 158,948,970 57,222,209 - 3,620,177 691,536,332
Share issued 46,816,126 (46,816,126) -
Share based payments -
Dividends to equity holders -
Bonus shares issued 204,315,817 - (204,315,817) -
Cash dividend paid (1,004,527,773) (1,004,527,773)
Other -
Total contributions by and distributions 718,752,517 (42,691,724) 158,948,970 - 57,222,209 - - (1,208,843,590) 3,620,177 (312,991,441)
Balance at Ashad end 2077 9,089,817,290 4,124,402 1,883,594,323 58,907,316 451,982,508 115,313,803 387,759,636 931,156,937 495,064,002 13,417,243,093

Balance at Shrawan 1, 2077 9,089,817,290 4,124,402 1,883,594,323 58,907,316 451,982,508 115,313,803 387,759,636 931,156,937 495,064,002 13,417,720,217
Adjustment (1) - - - - - - 360 - 359
Adjusted Balance on Shrawan 1, 2077 9,089,817,289 4,124,402 1,883,594,323 58,907,316 451,982,508 115,313,803 387,759,636 931,157,297 495,064,002 13,417,720,225
Profit for the year 515,591,328 515,591,328
Other Comprehensive income - - -
Total Comprehensive income - - - - - 10,351,207 - 515,591,328 - 525,942,535
Transfer to reserve during the year 103,118,266 2,858,431 341,759,715 (517,180,856) 69,444,444 -
Transfer from reserve during the year (11,439,433) 14,155,368 (2,715,935) -
Contributions from and distributtion to owners -
Share issued -
Share based payments -
Dividends to equity holders -
Bonus shares issued - - -
Cash dividend paid - -
Other -
Total contributions by and distributions - - - - - - - - - -
Balance at Ashwin end 2077 9,089,817,289 4,124,402 1,986,712,589 61,765,747 782,302,790 125,665,010 387,759,636 943,723,137 561,792,511 13,943,663,110
9,089,817,290 4124402 13,943,663,110
 Citizens Bank International Limited
Consolidated Statement of Cash Flows
For the Quarter ended Ashwin 2077
Amount in NPR
Group Bank
Particulars

Current year Previous Year Current Year Previous Year

CASH FLOWS FROM OPERATING ACTIVITIES
Interest Received 2,200,108,318 8,509,186,225 2,200,150,335 8,510,285,347
Fees And Other Income Received 221,039,010 639,685,724 214,596,207 607,821,628
Dividend Received - 57,000 - 57,000
Receipts From Other Operating Activities 118,603,995 347,964,369 120,621,151 358,182,540
Interest Paid (1,607,449,145) (6,399,803,133) (1,611,368,852) (6,420,392,692)
Commission And Fees Paid (9,436,985) (57,731,667) (9,436,985) (57,731,667)
Cash Payment To Employees (191,178,828) (918,378,301) (188,048,639) (907,082,314)
Other Expense Paid (119,521,603) (487,327,955) (118,465,014) (484,527,712)
Operating Cash Flows Before Changes In Operating Assets And Liabilities 612,164,762 1,633,652,262 608,048,203 1,606,612,130

(Increase)/Decrease In Operating Assets

Due From Nepal Rastra Bank (342,391,282) 1,545,653,776 (342,391,282) 1,545,653,776
Placement With Bank And Financial Institutions (2,985,194,199) 92,087,969 (2,985,194,199) 92,087,969
Other Trading Assets 24,778,727 505,897,554 24,778,727 505,897,554
Loan And Advances To Bank And Financial Institutions (202,466,106) 84,875,631 (202,466,106) 84,875,631
Loans And Advances To Customers (3,488,344,028) (12,281,363,118) (3,488,344,028) (12,281,363,118)
Other Assets (294,444,028) 295,544,223 (428,443,982) 294,472,098

Increase/(Decrease) In Operating Liabilities

Due To Bank And Financial Institutions (1,345,994,647) (311,383,946) (1,345,994,647) (311,383,946)
Due To Nepal Rastra Bank (536,636,628) (645,009,390) (536,636,628) (645,009,390)
Deposit From Customers 9,366,758,386 10,373,180,199 9,444,393,097 10,542,751,365
Borrowings - - - -
Other Liabilities 138,523,564 (194,764,788) 251,493,189 (295,210,207)
Net Cash Flow From Operating Activities Before Tax Paid 946,754,521 1,098,370,372 999,242,344 1,139,383,862
Income Taxes Paid (80,166,923) (602,539,104) (78,479,210) (597,313,401)
Net Cash Flow From Operating Activities 866,587,598 495,831,268 920,763,134 542,070,461

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase Of Investment Securities (3,315,643,776) (926,944,385) (3,278,288,222) (926,933,518)
Receipts From Sale Of Investment Securities 1,599,183 44,959,018 - -
Purchase Of Property And Equipment (47,116,228) (349,604,455) (47,052,142) (348,195,446)
Receipt From The Sale Of Property And Equipment 9,498,150 2,746,502 9,498,150 2,746,502
Purchase Of Intangible Assets (4,843,552) (7,264,170) (4,843,552) (6,319,490)
Receipt From The Sale Of Intangible Assets - - - -
Purchase Of Investment Properties - - - -
Receipt From The Sale Of Investment Properties 24,160,000 33,321,669 24,160,000 33,321,669
Interest Received 156,656,891 498,149,864 155,737,833 493,366,852
Dividend Received 45,744,518 14,361,992 41,636,867 12,316,159
Net Cash Used In Investing Activities (3,129,944,814) (690,273,965) (3,099,151,066) (739,697,272)

CASH FLOWS FROM FINANCING ACTIVITIES

Receipt From Issue Of Debt Securities 350,009 2,474,283,807 350,009 2,474,283,807
Repayment Of Debt Securities - - - -
Receipt From Issue Of Subordinated Liabilities - - - -
Repayment Of Subordinated Liabilities - - - -
Receipt From Issue Of Shares - 43,905,624 - 43,905,624
Dividends Paid (946,148,795) (943,197,062) (946,148,795) (943,197,062)
Interest Paid (76,675,048) (111,551,624) (76,675,048) (111,551,624)
Other Receipt/Payment 1,004,528,123 (999,654) 1,004,528,124 (999,654)
Net Cash From Financing Activities (17,945,711) 1,462,441,091 (17,945,710) 1,462,441,091

Net Increase (Decrease) In Cash And Cash Equivalents (2,281,302,927) 1,267,998,391 (2,196,333,644) 1,264,814,278
Cash Inflow from acquired institution 2,836,456,192 2,836,456,192
Cash And Cash Equivalents Ashadh, 2077 10,847,179,498 6,742,724,913 10,841,972,930 6,740,702,460
Effect Of Exchange Rate Fluctuations On Cash And Cash Equivalents Held - - -
Cash And Cash Equivalents At Ashwin End 2077 8,565,876,571 10,847,179,498 8,645,639,286 10,841,972,930
 Citizens Bank International Limited
Statement of Distributable Profit or Loss
For the period ended Ashwin 2077

Bank
Current Year
Net profit or (loss) as per statement of profit or loss 515,591,328
Appropriations:
a. General reserve (103,118,266)
b. Foreign exchange fluctuation fund (2,858,431)
c. Capital redemption reserve (69,444,444)
d. Corporate social responsibility fund 2,715,935
e. Employees' training fund (3,291,611)
f. Other -

Profit or (loss) before regulatory adjustment 339,594,511

Regulatory adjustment :
a. Interest receivable (-)/previous accrued interest received (+) (340,170,512)
b. Short loan loss provision in accounts (-)/reversal (+) -
c. Short provision for possible losses on investment (-)/reversal (+)
d. Short loan loss provision on Non Banking Assets (-)/resersal (+) 11,439,433
e. Deferred tax assets recognised (-)/ reversal (+) -
f. Goodwill recognised (-)/ impairment of Goodwill (+)
g. Bargain purchase gain recognised (-)/resersal (+) -
h. Actuarial loss recognised (-)/reversal (+) -
i. Other (+/-)
- Unrealised Gain on trading assets measured at Fair Value
Through Profit or Loss (1,589,203)
Distributable profit or (loss) 9,274,229
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!= ljQLo ljj/0f
-s_ q}dfl;s cjlwsf] jf;nft, gfkmf–gf]S;fg ;DaGwL ljj/0f .

o; a}+ssf] q}dfl;s cjlwsf] jf;nft, gfkmf–gf]S;fg ;DaGwL ljj/0f o;} ;fy k|sflzt ul/Psf] 5 .

-v_ ;DalGwt kIf

o; a}+ssf] ;DalGwt kIf aLr ePsf] sf/f]af/sf] ljj/0f o;} ;fy ;dfj]z ljQLo ljj/0f;Fu k|sflzt
ul/Psf] 5 .

-u_ k|d'v ljQLo cg'kftx?

k|lt z]o/ cfDbfgL ?= @@.^( k|lt z]o/ s'n ;DklQ d"No ?=!,#!).)$
d"No cfDbfgL cg'kft (.$* t/ntfsf] cg'kft @&.%@%
k|lt z]o/ g]6jy{ ?=!%#.$)

@= Joj:yfksLo ljZn]if0f M
-s_ a}+ssf] k"FhL kof{Kttf cg'kft, t/ntf, shf{ lgIf]k cg'kft, ;+:yfut lgIf]k cg'kft / cGo ;"rsfÍx?
;Gtf]ifhgs /x]sf 5g\ . s'n Jofh cfDbfgL / jf;nftsf] ;du| j[l¢sf] kmn:j?k d'gfkmfdf ut
cfly{s jif{sf] ;f]xL q}df;sf] t'ngfdf s]lx a9L b]lvPsf] 5 .

-v_ Joj;fo ljljlws/0f tyf u'0f:t/Lo ;]jf k|bfg ug]{ a}+ssf] p2]Zo tyf :yfgLo txsf b"u{d If]qdf
vf]lnPsf zfvfsf ;fy ;fy} zfvf /lxt a}lsË -Branch Less Banking_ sf dfWodaf6 u|fld0f
If]qdf a}lsË kx'Fr j[l¢ ub}{ n}hfg] tyf u|fxsd'VfL goFf ;]jf tyf ;'ljwfdf cfjZostf cg';f/ j[l4
ub}{ n}hfg] of]hgf /x]sf] 5 . To;}ul/ Digital Banking nfO{ k|f]T;flxt ub}{ nlug] of]hgf /x]sf] 5 .
Joj;fo lj:tf/sf] qmddf o; a+}sn] >L g]kfn /fi6« a+}saf6 ævÆ ju{sf] Ohfhtkq k|fKt ;+:yf ltgfp
ld;g 8]enkd]06 a+}s lnld6]8nfO{ k|flKt ug{sf nflu k|f/lDes ;xdlt kqdf x:tfIf/ u/]sf] 5 .
k|flKt kZrft a}+ssf] s'n zfvf ;+hfn a9\g]5 eg] a}+ssf] kx'Fr a9\g uO{ k|lt:kwf{Tds Ifdtfsf]
clea[l4 x'g], a}+ssf] ljQLo, dfgj–;+zfwgsf ;fy} k|fljlws Pj+ cGo Ifdtfsf] clej[l4 eO{ u|fxs
ju{nfO{ cfw'lgs, u'0f:t/Lo tyf e/kbf]{ a}+lsË ;'ljwf k|bfg ug{ ;xh x'g]5 .

-u_ Covid-19 sf sf/0f a}lsË sf/f]jf/df c;/ k/]tfkgL s'n Aofh cfDbfgL / cGo cfodf x'g uPsf]
j[l¢sf] sf/0f d'gfkmfdf ut cfly{s jif{sf] ;f]xL q}df;sf] t'ngfdf s]xL ;'wf/ b]lvPsf] 5 . ljZj Joflk
?kdf km}lnPsf] sf]/f]gf dxfdf/Lsf] ;+s6sf sf/0f a}+ssf] df}Hbft, gfkmf / gub k|jfxdf kfg{ ;Sg]
c;/sf af/]df a'bfF g+= % ævÆ df ljZn]if0ffTds ljj/0f k|:t't ul/Psf] 5 .
#= sfg'gL sf/jfxL ;DaGwL ljj/0f M

-s_ o; cjlwdf a}+sn] jf a}+ssf] lj?4 s'g} d'2f bfo/ ePsf] eP M

o; cjlwdf a}+sn] @ j6f d'2f bfo/ u/]sf] 5 .

-v_ a}+ssf] ;+:yfks jf ;+rfnsn] jf ;+:yfks jf ;+rfnssf] lj?4df k|rlnt lgodsf] cj1f jf
kmf}hbf/L ck/fw u/]sf] ;DaGwdf s'g} d'2f bfo/ u/]sf] jf ePsf] eP M
s'g} hfgsf/L k|fKt ePsf] 5}g .

-u_ s'g} ;+:yfks jf ;+rfns lj?4 cfly{s ck/fw u/]sf] ;DaGwdf s'g} d'2f bfo/ ePsf] eP M
s'g} hfgsf/L k|fKt ePsf] 5}g .

$= ;+ul7t ;+:yfsf] z]o/ sf/f]jf/ ;DaGwL ljZn]if0f

-s_ lwtf]kq ahf/df ePsf] a}+ssf] z]o/sf] sf/f]af/ ;DaGwdf Joj:yfkgsf] wf/0ff M
b]zsf] lwtf]kq ahf/df Covid-19 sf] sf/0f ;+ul7t ;+:yfx?sf] z]o/ sf/f]jf/df b]lvPsf] pRr
ptf/ r9fjsf afjh'b klg o; a}+ssf] z]o/ sf/f]jf/ ;Gtf]ifhgs /x]sf] 5 .

-v_ o; cjlwsf] z]o/sf] clwstd, Go"gtd, clGtd d"No, sf/f]af/ ePsf] s'n lbg tyf sf/f]af/ ;+Vof M
o; cjlwsf] z]o/sf] clwstd, Go"gtd, clGtd d"No, sf/f]af/ ePsf] s'n lbg tyf sf/f]af/ ;+Vofsf]
ljj/0f b]xfo adf]lhd /x]sf] 5 M
clwstd d"No ?=@#!.)) s'n sf/f]jf/ z]o/ ;+Vof #$,%*,&$!
Go"gtd d"No ?= !().)) s'n sf/f]jf/ lbg ^$
d;fGtsf] clGtd d"No ?= @!%.)) s'n sf/f]jf/ ;+Vof !#(!&

%= ;d:of tyf r'gf}tL M

-s_ cfGtl/s ;d:of tyf r'gf}tL
a}+ssf] ;+rfng vr{ j[l4 xF'b} hfg', lgIf]k tyf ;fk6Ldf Jofhb/sf] kl/jt{g nufot cfodf
ljljlws/0f NofpFg', lgis[o shf{ a9\g', pko'Qm nufgLsf If]q klxrfg ug'{ tyf zfvfx?sf] j[l¢
;Fu;Fu} ;+rfng hf]lvd Joj:yfkg r'gf}tLk"0f{ x'g' h:tf cfGtl/s ;d:of /x]sf] ljBdfg kl/k|]Iodf
a}+ssf] lbuf] ?kdf d'gfkmf a[l4 ug]{ sfo{ r'gf}tLk"0f{ /x]sf] 5 .

-v_ afx\o ;d:of tyf r'gf}tL

xfnsf] kl/l:ydf ljZjAoflk ?kdf km}lnPsf] sf]/f]gf dxfdf/Lsf] ;+s6sf sf/0f a}+lsË sf/f]af/df sdL
cfpg', k|If]lkt ;dodf C0f tyf Aofh r'Qmf gx'g'sf ;fy} b]zsf] cy{tGqdf ;d]t lUf/fj6 cfPsf] 5
/ cfpg] lbgdf klg o;sf] yk c;/ kg]{ cfFsng ul/Psf] 5 .

o:tf] cj:yfdf a}+ssf] ;fk6L / nufgL Aofhb/df c;/ kg{ uO{ sf]/f]gf dxfdf/Lsf] sf/0f a}+ssf] s'n
cfDbfgLdf c;/ kg'{, lgis[o shf{ a9\g' tyf Aofhb/ cGt/nfO{ oyfjt sfod /fVg' h:tf hf]lvdx?
/ ;fy} sf]/f]gf dxfdf/Lsf sf/0f b]zsf] cy{tGqdf k|lts'n c;/af6 pTkGg x'g;Sg] hf]lvdnfO{
Joj:yfkg ug'{ r'gf}ltk"0f{ /x]sf] 5 . To;} u/L jt{dfg cj:yfdf ;Dk"0f{ Jofkf/ Joj;fodf k|lts'n
 c;/ k/]sf] / To;} cg';f/ a}+sx?af6 shf{ nufgLsf] Aofhb/ 36fpg] bafa kl//x]sf] cj:yf 5 eg]
a}+ssf] ;+rfng tyf cg'kfngf nfut eg] pNn]Vo ?kdf sd ug{ ;lsg] cj:yf /x]sf] 5}g /
kmn:j?k a}+ssf] v'b d'gfkmf / ljt/0f of]Uo d'gfkmfdf k|lts'n c;/ kg{ uO{ nfe+fz ljt/0fdf ;d]t
X|f; cfpg] b]lvG5 . o:tf r'gf}ltx? /x]sf] cj:yfdf a}lsË If]qdf tLj| k|lt:kwf{ x'g', a}lsË If]qdf bIf
hgzlQmsf] sld x'g', ;"rgf k|ljlwsf If]qdf b]vf k/]sf gofF lsl;dsf r"gf}ltx?, Covid-19 sf
sf/0f nufgLstf{sf] dgf]andf sld x'g', ;/sf/L ljsf; vr{ sd x'g', nufot k|d'v afx\o ;d:of
x'g\ . o:tf ;d:of ljBdfg /x]sf] cj:yfdf a}+ssf] sf/f]af/ lbuf] ?kdf lj:tf/ ul/ ;DklQsf] u'0f:t/
sfod /flv nufgLstf{nfO{ plrt k|ltkmn lbg] sfo{ r'gf}ltk"0f{ /x]sf] 5 .

-u_ /0fgLlt
a}+sn] u|fdL0f tyf b'u{d If]q / a}+lsË ;]jfaf6 jl~rt JolQm tyf ;+3 ;+:yfnfO{ a}+ssf] bfo/fdf NofO
lgIf]k kl/rfng a9fpg], cfw'lgs k|ljlw tyf ;ˆ6j]o/ k|of]u u/L k|ToIf ?kdf u|fxs a}+s ;dIf
k|:t't x'g gkg]{ u/L a}+lsË ;'ljwf k|bfg ug{', ljleGg Joj;flos ;+3–;+:yf nufot JolQmut
u|fxsx?;Fusf] ;DaGw ;'dw'/ agfpgsf nflu l56f] Pj+ 5l/tf] tj/n] u|fxsd'vL ;]jfx? pknAw
u/fOg], a}+ssf] ;du| hf]lvd Joj:yfkgsf] cfwf/e"t kIfx?nfO{ dha't agfO{ plNnlvt r'gf}ltsf]
;dfwfg ug]{ / a}+ssf] cfGtl/s sfo{k|0ffnLdf vr{ ldtJolotf ckgfO{ lgwf{l/t nIo k|fKt ug]{ /0fgLlt
cjnDag u/]sf] 5 . To;}u/L a}+sn] Covid-19 n] lgDTofPsf] hf]lvd Go"lgs/0f ub{} a}+ls‹ ;]jf
;"rf? ug{] gLlt klg cjnDag u/]sf] 5 . ;fy} a}+sn] lgis[o shf{ tyf kfs]sf] Jofh tyf shf{sf]
sL:tf gltg{] C0fLx?sf] plrt Joj:yfkg ul/ ljt/0fof]Uo d'gfkmf j[4L ug]{ gLlt klg lnPsf] 5 .

^= ;+:yfut ;'zf;g M

-s_ ;+:yfut ;'zf;g clej[l¢sf] nflu a}+sn] cfGtl/s lgoGq0f k|0ffnL dha't agfpg tyf Jojl:yt ug{
cg'kfng ljefu tyf ;'zf;g OsfO{sf]] Joj:yf ul/Psf] tyf n]vfk/LIfs tyf lgodgsf/L lgsfojf6
lbOPsf ;'emfj tyf lgb]{zgx? Joj:yfkg dfkm{t sfof{Gjog u/fpg ;b}j lqmofzLn /x]sf] 5 .

-v_ a}+ssf] ;du| hf]lvd Joj:yfkg sfo{nfO{ dha't kfg{, jt{dfg kl/k|]Iodf ;du| ahf/df b]vfk/]sf] IT
Risk ljZn]if0f ul/ Joj:yfkg ug{, ;+rfng hf]lvd sd ug{ tyf cfGtl/s k|s[ofx?nfO{ Jojl:yt
ug{ hf]lvDf Joj:YffKfGf ;ldlt u7Gf Ufl/Psf] 5 . a}+ssf] sfd sf/jfxLdf lgoldttf, ldtJolotf,
cf}lrTotf h:tf s'/fx? eP gePsf] af/] ;ldIff ul/ cfjZos /fo ;'emfj lbg n]vf k/LIf0f ;ldlt
u7g ul/Psf] 5 . a}+ssf] ;du| cg'kfngsf cj:yf ljZn]if0f ug{, u|fxssf] hf]lvd :t/ lgwf{/0f ul/
b]vf k/]sf sld sdhf]/Lsf] ;dfwfg ug{ pko'Qm lgb]{zg lbg] sfo{ ug{ ;DklQ z'l4s/0f lgjf/0f
;ldltsf] u7g ul/Psf] 5 . shf{ hf]lvdsf] cg'udg tyf ljZn]if0fnfO{ hf]lvd Joj:Yffkg ;ldlt
cGtu{t /xg] u/L 5'§} ljefuaf6 x]g]{ Joj:yf ldnfO{ ahf/ Joj:yfkgsf] sfo{af6 5'§ofOPsf] 5 . ;fYf}
ljleGg ljefux?;+u ;DalGwt sfo{ ;+rfngnfO{ Jojl:yt ug{ cfGtl/s gLlt, lgod tyf lgb]{lzsfx?
hf/L u/L nfu" ul/Psf] 5 . lg0f{o k|s[ofnfO{ l56f]–5l/tf] tyf r':t agfpg Joj:yfkg txdf
Joj:yfkg ;ldlt -Executive Committee_, ;DklQ bfloTj Joj:yfkg ;ldlt -ALCO_
nufotsf ljleGg ;ldltx? lqmofzLn /x]sf 5g\ .
-u_ a}+s ;+rfns ;ldlt tyf Joj:yfkg cfˆgf z]o/wgLx?, ;j{;fwf/0f lgIf]kstf{x? nufot ;Dk"0f{
;/f]sf/jfnfx?sf] lxtsf] ;+/If0f tyf ;+:yfut ;'zf;gk|lt ;b}j ;hu tyf k|ltj¢ /x]sf] 5 .

&= ;To, tYotf ;DaGwdf sfo{sf/L k|d'vsf] pb\3f]if0f M

cfhsf] ldlt;Dd o; k|ltj]bgdf pNn]lvt hfgsf/L tyf ljj/0fx?sf] z'¢tf ;DaGwdf d JolQmut
?kdf pQ/bfloTj lnG5' . ;fy} d of] pb\3f]if ub{5' ls d}n] hfg] a'em];Dd o; k|ltj]bgdf pNn]lvt
ljj/0fx? ;To, tYo / k"0f{ 5g\ / nufgLstf{x?nfO{ ;";'lrt lg0f{o lng cfjZos s'g} ljj/0f, ;"rgf
tyf hfgsf/Lx? n'sfOPsf] 5}g .
k|d'v sfo{sf/L clws[t
 Citizens Bank International Limited Group
Notes to the Consolidated Interim Financial Statements

1. Basis of Preparation
The financial statements of the Group have been prepared on accrual basis of accounting except the cash
flow statement which is prepared, on a cash basis, using the direct method.
The financial statements comprise the consolidated Statement of Financial Position, consolidated
Statement of Profit or Loss and consolidated Statement of Other Comprehensive Income, the
consolidated Statement of Changes in Equity, the consolidated Statement of Cash Flows and the Notes to
the Accounts of the Group and Separate financial statements as stated above of the Bank. The significant
accounting policies applied in the preparation of consolidated financial statements are set out below in
point number 3. These policies are consistently applied to all the years presented, except for the changes
in accounting policies disclosed specifically.

1.1. Reporting Period

Reporting Period is a period from the first day of Shrawan (mid July) of any year to the last day of
Quarter end i.e. Ashwin (Mid October), Poush (Mid January), Chaitra (Mid April) and Ashadh (mid July)
as per the Nepali calendar.
Nepali Calendar English Calendar
1st Shrawan 2077to 16thJuly 2020 to
Current Year Period 30th Ashwin2077 16thOctober2020
1st Shrawan 2076 to 17th July 2019 to
Previous Year Period 30th Ashwin 2076 17thOctober 2019

1.2. Functional and Presentation Currency

The Financial Statements of the Group are presented in Nepalese Rupees (NPR), which is the currency of
the primary economic environment in which the Group operates. Financial information is presented in
Nepalese Rupees. There was no change in the Group‟s presentation and functional currency during the
year under review. The figures are rounded to nearest integer, except otherwise indicated.
2. Statement of Compliance with NFRS
The Consolidated Financial Statements of the Group which comprises components mentioned above have
been prepared in accordance with Nepal Accounting Standards comprising of Nepal Financial Reporting
Standards and Nepal Accounting Standards (hereafter referred as NFRS), laid down by the Institute of
Chartered Accountants of Nepal and in compliance with the requirements of the Companies Act, 2063
and Generally Accepted Accounting Principles in the Banking industry in Nepal
3. Use of Estimates, Assumptions and Judgment
The preparation of financial statements requires the management to make estimates and assumptions that
are considered while reporting amounts of assets and liabilities (including contingent assets and
liabilities) as of the date of the financial statements. Management believes that the estimates used in the
preparation of the financial statements are prudent and reasonable. Future results could differ from these
estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Any revision to
accounting estimates is recognized prospectively in current and future periods.
Information about assumptions and estimation that have a significant risk of resulting in a material
adjustment within the next financial year are:
 Key assumptions used in discounted cash flow projections.
 Measurement of defined benefit obligations.
 Provisions, commitments and contingencies.
 Determination of net realizable value.
 Determination of useful life of the property, plants and equipment.
 Assessment of the Group‟s ability to continue as going concern.
 Determination of fair value of financial instruments; and property and equipment.
  Impairment of financial and non-financial assets.
 Assessment of current as well as deferred tax.

4. Changes in Accounting Policies

The Group has applied its accounting policies consistently from year to year except for some
comparatives have been grouped or regrouped to facilitate comparison, corrections of errors and any
changes in accounting policy have been separately disclosed with detail explanation.
5. Significant Accounting Policies
The principal accounting policies adopted in the preparation of the consolidated financial statements are
set out below. The policies have been consistently applied to all the years presented, unless otherwise
stated. The preparation of financial statements requires the use of certain accounting estimates. The areas
where significant judgments and estimates have been made in preparing the financial statements and their
effects have been disclosed.
5.1. Basis of Measurement
The financial statements have been prepared on historical cost basis except for following material items
in the statement of financial position:
 Financial assets other than measured at amortized cost are measured at fair value.
 Non-derivative financial instruments at fair value through profit or loss are measured at fair value.
 Derivative financial instruments are measured at fair value.
 Inventories are measured at cost or net realizable value whichever is lower.
 Liabilities for defined benefit obligations are recognized at the present value of the defined benefit
obligation less the fair value of the plan assets.
 Investment property is measured at cost.
 Liabilities for cash-settled, share-based-payment arrangements are measured at fair value.
 Investment securities are measured at fair value.
 Trading Assets like Bonds, Treasury Bills, Equities, etc. held for trading purposeare measured at fair
value.
 Impairment of asset is measured at fair value and related disposal cost.
 Assets acquired & Liabilities assumed in a business combination are recognized at fair value.
 Any other requirements or options provided by standards.

5.2. Basis of Consolidation

Where the company has the power, either directly or indirectly, to govern the financial and operating
policies of another entity or business so as to obtain benefits from its activities, it is classified as a
subsidiary. The consolidated financial statements present the results of the company and its subsidiaries
("the Group") as if they formed a single entity.
In the statement of financial position, the acquiree's identifiable assets, liabilities and contingent liabilities
are initially recognized at their fair values at the acquisition date. The results of acquired operations are
included in the consolidated statement of income from the date on which control is obtained. They are de-
consolidated from the date of control ceases.
The Group‟s Financial Statements comprise consolidation of the Financial Statements of the Group and
its subsidiary in terms of the NFRS 10 – Consolidated Financial Statements.
5.2.1. Subsidiaries
Subsidiaries are the entities controlled by the Bank. The Bank controls an entity if it is exposed, or has
rights, to variable returns from its involvement with the investee and has the ability to affect those returns
through its power over the investee. The Financial Statements of subsidiaries are included in the
Consolidated Financial Statements from the date that control commences until the date that control
ceases. The Bank reassesses whether it has control if there are changes to one or more of the elements of
control. The Financial Statements have been prepared using uniform accounting policies for like
transactions and other events in similar circumstances.
The Consolidated Financial Statements are prepared for the common financial year end. There are no
significant restrictions on the ability of subsidiaries to transfer funds to the parent in the form of cash
dividends or to repay loans and advances. Both of the subsidiaries of the Bank have been incorporated in
Nepal.

5.2.2. Business combination

Business combinations are accounted for using the acquisition method. As of the acquisition date, the
amount of non-controlling interest is measured either at fair value or at the non-controlling interest‟s
proportionate share of the acquirer‟s identifiable net assets. Acquisition related costs are expensed in the
periods in which the costs are incurred and the services are received.
The Group elects on a transaction by transaction basis whether to measure non-controlling interest at its
fair value, or at its proportionate share of the recognized amount of the identifiable net assets, at the
acquisition date. Transaction costs, other than those associated with the issue of debt or equity securities,
that the Group incurs in connection with a business combination are expensed as incurred.

5.2.3. Acquisitions of non-controlling interests

Acquisitions of non-controlling interests are accounted for as transactions with equity holders in their
capacity as equity holders. Therefore, no goodwill is recognized as a result of such transactions.

5.2.4. Loss of control

Upon the loss of control, the Group derecognizes the assets and liabilities of the subsidiary, carrying
amount of non-controlling interests and the cumulative translation differences recorded in equity related
to the subsidiary. Further parent‟s share of components previously recognized in Other Comprehensive
Income (OCI) is reclassified to profit or loss or retained earnings as appropriate. Any surplus or deficit
arising on the loss of control is recognized in the profit or loss. If the Group retains any interest in the
previous subsidiary, then such interest is measured at fair value at the date that control is lost.
Subsequently, it is accounted for as an equity-accounted investee or in accordance with the Group‟s
accounting policy for financial instruments depending on the level of influence retained.
5.2.5. Transactions eliminated on consolidation
All intra group balances, income and expenses (except for foreign currency translation gains or losses)
arising from intra group transactions are eliminated on consolidation. Unrealized gains and losses
resulting from transactions between the Group and subsidiary are also eliminated on consolidation to the
extent of the Group‟s interests in the subsidiary.

5.3. Cash and Cash Equivalents

Cash and cash equivalents include cash at vault and agency bank accounts balances, unrestricted balances
with NRB, highly liquid financial assets with original maturity of 3 months from the date of its
acquisition and are readily convertible to cash, which are subject to an insignificant risk of changes in
value.
Cash and Cash equivalent are classified as financial assets and are measured at amortized cost in the
statement of financial position.
Statement of Cash Flows has been prepared by using the „Direct Method‟ in accordance with NAS 07-
Cash Flow Statements.

5.4. Financial Assets and Financial Liabilities

5.4.1. Recognition
The Group initially recognizes a financial asset or a financial liability in its statement of financial
position when, and only when, it becomes party to the contractual provisions of the instrument. The
Group initially recognizes loans and advances, deposits; and debt securities/ subordinated liabilities
issued on the date that they are originated which is the date that the Group becomes party to the
contractual provisions of the instruments. Investments in equity instruments, bonds, debenture,
Government securities, NRB bond or deposit auction, reverse repos, outright purchase are recognized
on trade date at which the Group commits to purchase/ acquire the financial assets. Regular way
purchase and sale of financial assets are recognized on trade date.

5.4.2. Classification
i. Financial Assets
The Group classifies the financial assets as subsequently measured at amortized cost or fair value on
the basis of the Group‟s business model for managing the financial assets and the contractual cash
flow characteristics of the financial assets. The two classes of financial assets are as follows:
1. Financial assets measured at amortized cost
The Group classifies a financial asset measured at amortized cost if both of the following
conditions are met:
a) The asset is held within a business model whose objective is to hold assets in order to
collect contractual cash flows and
b) The contractual terms of the financial asset give rise on specified dates to cash flows that
are solely payments of principal and interest on the principal amount outstanding.
2. Financial asset measured at fair value
Financial assets other than those measured at amortized cost are measured at fair value.
Financial assets measured at fair value are further classified into two categories as below:
a) Financial assets at fair value through profit or loss
Financial assets are classified as fair value through profit or loss (FVTPL) if they are held
for trading purpose or are designated at fair value through profit or loss. Upon initial
recognition, transaction cost are directly attributable to the acquisition are recognized in
profit or loss as incurred. Such assets are subsequently measured at fair value and changes
in fair value are recognized in Statement of Profit or Loss.

b) Financial assets at fair value through other comprehensive income

Investment in an equity instrument that is not held for trading and at the initial
recognition, the Group makes an irrevocable election that the subsequent changes in fair
value of the instrument is to be recognized in other comprehensive income are classified
as financial assets at fair value though other comprehensive income. Such assets are
subsequently measured at fair value and changes in fair value are recognized in other
comprehensive income.

ii. Financial Liabilities

The Group classifies the financial liabilities as follows:
a) Financial liabilities at fair value through profit or loss
Financial liabilities are classified as fair value through profit or loss (FVTPL) if they are held for
trading or are designated at fair value through profit or loss. Upon initial recognition, transaction
cost are directly attributable to the acquisition are recognized in Statement of Profit or Loss as
incurred. Subsequent changes in fair value is recognized at profit or loss.

b) Financial liabilities measured at amortized cost

All financial liabilities other than measured at fair value though profit or loss are classified as
subsequently measured at amortized cost using effective interest rate method.
 5.4.3. Measurement
Initial Measurement
A financial asset or financial liability is measured initially at fair value plus, for an item not at fair value
through profit or loss, transaction costs that are directly attributable to its acquisition or issue.
Transaction cost in relation to financial assets and liabilities at fair value through profit or loss are
recognized in Statement of Profit or Loss.

Subsequent Measurement
A financial asset or financial liability is subsequently measured either at fair value or at amortized cost
based on the classification of the financial asset or liability. Financial asset or liability classified as
measured at amortized cost is subsequently measured at amortized cost using effective interest rate
method.
The amortized cost of a financial asset or financial liability is the amount at which the financial asset or
financial liability is measured at initial recognition minus principal repayments, plus or minus the
cumulative amortization using the effective interest method of any difference between that initial amount
and the maturity amount, and minus any reduction for impairment or uncollectibility.
Financial assets classified at fair value are subsequently measured fair value. The subsequent changes in
fair value of financial assets at fair value through profit or loss are recognized in Statement of Profit or
Loss whereas of financial assets at fair value through other comprehensive income are recognized in
other comprehensive income.

5.4.4. Derecognition
i. Derecognition of financial assets
The Group derecognizes a financial asset when the contractual rights to the cash flows from the financial
asset expire, or when it transfers the financial asset in a transaction in which substantially all the risks and
rewards of ownership of the financial asset are transferred or in which the Group neither transfers nor
retains substantially all the risks and rewards of ownership and it does not retain control of the financial
asset.
Any interest in such transferred financial assets that qualify for derecognition that is created or retained
by the Group is recognized as a separate asset or liability. On derecognition of a financial asset, the
difference between the carrying amount of the asset, and the sum of (i) the consideration received and (ii)
any cumulative gain or loss that had been recognized is recognized in Statement of Profit or Loss.
The Group enters into transactions whereby it transfers assets recognized on its Statement of Financial
Position, but retains either all or substantially all of the risks and rewards of the transferred assets or a
portion of them, then the transferred assets are not derecognized. Transfers of assets with retention of all
or substantially all risks and rewards include, for example repurchase transactions.

ii. Derecognition of financial liabilities

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or
expired. Where an existing financial liability is replaced by another from the same lender on substantially
different terms, or the terms of an existing liability are substantially modified, such an exchange or
modification is treated as a derecognition of the original liability and the recognition of a new liability.
The difference between the carrying value of the original financial liability and the consideration paid is
recognized in Statement of Profit or Loss.

5.4.5. Determination of fair value

„Fair value‟ is the price that would be received to sell an asset or paid to transfer a liability (exit price) in
an orderly transaction between market participants at the measurement date in the principal or, in its
absence, the most advantageous market to which the Group has access at that date. The fair value of a
liability reflects its non performance risk.
When available, the Group measures the fair value of an instrument using the quoted price in an active
market for that instrument. A market is regarded as active if transactions for the asset or liability take
place with sufficient frequency and volume to provide pricing information on an ongoing basis. If there is
no quoted price in an active market, then the Group uses valuation techniques that maximize the use of
relevant observable inputs and minimize the use of unobservable inputs. The chosen valuation technique
incorporates all of the factors that market participants would take into account in pricing a transaction.
The fair value measurement hierarchy is as follows:
Level 1 fair value measurements are those derived from unadjusted quoted prices in active markets for
identical assets or liabilities.
Level 2 valuations are those with quoted prices for similar instruments in active markets or quoted prices
for identical or similar instruments in inactive markets and financial instruments valued using models
where all significant inputs are observable.
Level 3 portfolios are those where there are unobservable inputs of the instruments. The inputs are not
based on observable market data.
The best evidence of the fair value of a financial instrument at initial recognition is normally the
transaction price i.e. the fair value of the consideration given or received. If the Group determines that the
fair value at initial recognition differs from the transaction price and the fair value is evidenced neither by
a quoted price in an active market for an identical asset or liability (Level 01 valuation) nor based on a
valuation technique that uses only data from observable markets (Level 02 valuation), then the financial
instrument is initially measured at fair value, adjusted to defer the difference between the fair value at
initial recognition and the transaction price. Subsequently, that difference is recognized in profit or loss
on an appropriate basis over the life of the instrument but not later than when the valuation is wholly
supported by observable market data or the transaction is closed out. In case the fair value is evidenced
by a quoted price in an active market for an identical asset or liability (Level 01 valuation), the difference
between the transaction price and fair value is recognized in profit or loss immediately.

5.4.6. Offsetting
Financial assets and liabilities are offset and the net amount presented in the statement of financial
position when, and only when, the Group has a legal right to set off the amounts and it intends either to
settle them on a net basis or to realize the asset and settle the liability simultaneously.
Income and expenses are presented on a net basis only when permitted under NFRS, or for gains and
losses arising from a group of similar transactions such as in the Group‟s trading activity.

5.4.7. Impairment of financial assets

At each reporting date, the Group assesses whether there is objective evidence that a financial asset or
group of financial assets not carried at fair value through profit or loss are impaired. A financial asset or a
group of financial assets is impaired when objective evidence demonstrates that a loss event has occurred
after the initial recognition of the asset(s), and that the loss event has an impact on the future cash flows
of the asset(s) that can be estimated reliably.
Objective evidence that financial assets are impaired can include significant financial difficulty of the
borrower or issuer, default or delinquency by a borrower, restructuring of a loan or advance by the Group
on terms that the Group would not otherwise consider, indications that a borrower or issuer will enter
Bankruptcy, the disappearance of an active market for a security, or other observable data relating to a
group of assets such as adverse changes in the payment status of borrowers or issuers in the group, or
economic conditions that correlate with defaults in the group. In addition, for an investment in an equity
security, a significant or prolonged decline in its fair value below its cost is objective evidence of
impairment.
In case of financial difficulty of the borrower, the Group considers to restructure loans rather than take
possession of collateral. This may involve extending the payment arrangements and agreement of new
loan conditions. Once the terms have been renegotiated, any impairment is measured using the original
EIR as calculated before the modification of terms and the loan is no longer considered past due.
Management continually reviews renegotiated loans to ensure that all criteria are met and that future
payments are likely to occur. The loans continue to be subject to an individual or collective impairment
assessment, calculated using the loan‟s original EIR.

Impairment of financial assets measured at amortized cost

The Group considers evidence of impairment for loans and advances and investment securities measured
at amortized cost at both specific asset and collective level. The Group first assesses individually whether
objective evidence of impairment exists for financial assets that are individually significant and that are
not individually significant are assessed collectively.
If there is objective evidence on that an impairment loss has been incurred, the amount of the loss is
measured as the difference between the asset‟s carrying amount and the present value of estimated future
cash flows. The carrying amount of the asset is reduced through the use of an allowance account and the
amount of the loss is recognized in profit or loss.
All individually significant loans and advances and investment securities are assessed for specific
impairment. Those found not to be specifically impaired are then collectively assessed for any
impairment that has been incurred but not yet identified. Loans and advances and investment securities
that are not individually significant are collectively assessed for impairment by grouping together loans
and advances and investment securities with similar risk characteristics.
Impairment of loans and advances portfolios is based on the judgments in past experience of portfolio
behavior. In assessing collective impairment the Group uses historical trends of the probability of default,
the timing of recoveries and the amount of loss incurred, adjusted for management‟s judgment as to
whether current economic and credit conditions are such that the actual losses are likely to be greater or
less than suggested by historical trends. Default rates, loss rates and the expected timing of future
recoveries are regularly benchmarked against actual outcomes to ensure that they remain appropriate.
Impairment losses on assets measured at amortized cost are calculated as the difference between the
carrying amount and the present value of estimated future cash flows discounted at the asset‟s original
effective interest rate.
In case of impairment of financial assets being loans and advances, the impairment loss amount is taken
as per norms prescribed by Nepal Rastra Bank for loan loss provision.
Loans together with the associated allowance are written off when there is no realistic prospect of future
recovery and all collateral has been realized or has been transferred to the Group. If in a subsequent year,
the amount of the estimated impairment loss increases or decreases because of an event occurring after
the impairment was recognized, the previously recognized impairment loss is increased or reduced by
adjusting the allowance account. If a write off is later recovered, the recovery is recognized in the
„NonOperating Income‟.

Impairment of investment in equity instrument classified as fair value through other comprehensive
income
Objective evidence of impairment of investment in an equity instrument is a significant or prolonged
decline in its fair value below its cost. Impairment losses are recognized by reclassifying the losses
accumulated in the fair value reserve in equity to profit or loss. The cumulative loss that is reclassified
from equity to profit or loss is the difference between the acquisition cost, net of any principal repayment
and the current fair value, less any impairment loss recognized previously in profit or loss.

5.5. Trading Assets

Trading assets are those assets that are acquired principally for the purpose of selling in the near term, or
held as part of a portfolio that is managed together for short-term profit. It includes non derivative
financials assets such as government bonds, NRB bonds, domestic corporate bonds, treasury bills,
equities etc. held primarily for the trading purpose. If a trading asset is a debt instrument, it is subject to
the same accounting policy applied to financial assets measured at amortized cost. If a trading asset is an
equity instrument, it is subject to the same accounting policy applied to financial assets measured at Fair
Value Through Profit or Loss.
5.6. Derivative assets and derivative liabilities
Derivative assets and derivative liabilities create rights and obligations that have the effect of transferring
between the parties to the instrument one or more of the financial risk inherent in an underlying primary
financial instrument. However, they generally do not result in a transfer of the underlying primary
financial instrument on inception of the contract, nor does such a transfer necessarily take place on
maturity of the contract.
The value of a derivative changes with the change in value of the underlying. Examples of derivative are
forward, futures, options or swap contracts. The underlying could be specified interest rate, security price,
commodity price, exchange rate, price index, etc.
Derivative financial instruments meet the definition of a financial instrument and are accounted for as
derivative financial asset or derivative financial liability measured at FVTPL and corresponding fair
value changes are recognized in profit or loss. The Group has not designated derivative as a hedging
instrument in an eligible hedging relationship under NFRS 9 – “Financial Instrument” and has not applied
hedge accounting.

5.7. Foreign Currency

Foreign currency transactions
Transactions in foreign currencies are translated into the functional currency at the spot exchange rate at
the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the
reporting date are retranslated into the functional currency at the spot exchange rate at that date and all
differences arising on non trading activities are taken to „other operating income‟ in the Statement of
Profit or Loss.
Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are
retranslated into the functional currency at the spot exchange rate at the date on which the fair value is
determined.
Foreign currency differences arising on retranslation are recognized in the Statement of Profit or Loss.
At the annual closing, if the revaluation loss is reported, the same is charged to Statement of Profit or
Loss and if revaluation profit is reported, such amount is shown as income in Statement of Profit or Loss
and 25 percent of such profit is appropriated to Exchange Fluctuation Reserve through Statement of
Changes in Equity as required by Bank and Financial Institutions Act.
Non-monetary assets and liabilities that are measured in terms of historical cost in a foreign currency are
translated using the exchange rate at the date of the initial transaction. Forward exchange contracts are
valued at the forward market rates ruling on the reporting date and resulting net unrealized gains or losses
are dealt with in the Statement of Profit or Loss.

5.8. Property and Equipment

a) Recognition and Measurement
Property and Equipment are recognized if it is probable that future economic benefits associated with the
assets will flow to the Group and the cost of the asset can be reliably measured. The cost includes
expenditures that are directly attributable to the acquisition of the assets. Cost of self constructed assets
includes followings:

 Cost of materials and direct labor;

 Any other cost directly attributable to bringing the assets to the working condition for their
intended use; and
 Capitalized borrowing cost
Subsequent expenditure is capitalized if it is probable that the future economic benefits from the
expenditure will flow to the entity. Ongoing repairs and maintenance to keep the assets in working
condition are expensed as incurred.
Property and equipment are measured at cost less accumulated depreciation and accumulated impairment
loss, if any.
Neither class of the property and equipment has been measuredas per revaluation model nor is their fair
value measured at the reporting date.
On revaluation of an asset, any increase in the carrying amount is recognized in „Other comprehensive
income‟ and accumulated in equity, under capital reserve or used to reverse a previous revaluation
decrease relating to the same asset, which was charged to the Statement of Profit or Loss. In this
circumstance, the increase is recognized as income to the extent of previous write down. Any decrease in
the carrying amount is recognized as an expense in the Statement of Profit or Loss or debited to the Other
Comprehensive income to the extent of any credit balance existing in the capital reserve in respect of that
asset.
The decrease recognized in other comprehensive income reduces the amount accumulated in equity under
capital reserves. Any balance remaining in the revaluation reserve in respect of an asset is transferred
directly to retained earnings on retirement or disposal of the asset.
b) Capital work in progress
Capital work in progress is stated at cost. These are expenses of a capital nature directly incurred in the
construction of buildings and system development, awaiting capitalization. Capital work-in-progress
would be transferred to the relevant asset when it is available for use, i.e. when it is in the location and
condition necessary for it to be capable of operating in the manner intended by management. Capital
work-in-progress is stated at cost less any accumulated impairment losses.
c) Depreciation
Property and equipments are depreciated from the date they are available for use on property on straight-
line method over estimated useful lives as determined by the Management. Depreciation is recognized in
profit or loss. Leased assets under the finance lease are depreciation over the shorter of the lease term and
their useful life. Land is not depreciated. Charging of depreciation is ceased from the earlier of the date
from which the asset is classified as held for sale or is derecognized.
The estimated useful lives of significant items of property and equipment for current year and
comparative periods are as follows:

Class of Assets Useful Life Rate of Depreciation

Building 20 years 5%
Metal Furniture 6 years 16.67%
Wooden Furniture 5 years 20%
Office Vehicles 7 years 14.29%
Computer (including Printer) 4 years 25%
Office Equipments 5 years 20%

 The expenses of leasehold improvements are amortized over the lease period or a maximum of
10 year period whichever is lower.
 The capitalized value of Software Purchase and installation costs are amortized over a maximum
5 year period or within the ownership period.
 Assets costing less than Rs 5,000 are fully depreciated in the year of purchase. For assets
purchased/sold during the year, depreciation is provided upto the date of use on pro-rata basis.
Depreciation method, useful lives and residual value are reviewed at each reporting date and adjusted, if
any.
d) De-recognition
The carrying amount of an item of property and equipment is derecognized on disposal or when no future
economic benefits are expected from its use. The gain or loss arising from de-recognition of an item of
property and equipment is included in the Statement of Profit or Loss when the item is derecognized.
When replacement costs are recognized in the carrying amount of an item of property and equipment, the
remaining carrying amount of the replaced part is derecognized. Major inspection costs are capitalized.
At each such capitalization, the remaining carrying amount of the previous cost of inspections is
derecognized.
Any gain or losses on de-recognition of an item of property and equipment is recognized in profit or loss.
5.9. Intangible Assets
The intangible assets include software purchased by the Group. Software is measured at cost less
accumulated amortization and accumulated impairment loss if any. Software is amortized on a straight
line basis in profit or loss over its useful life, from the date that is available for use. The estimated useful
life of software for the current and comparative periods is five year. Amortization method, useful lives
and residual value are reviewed at each reporting date and adjusted if any.
The goodwill is initially measured at the difference between the purchase consideration given and the fair
value of net assets acquired. Subsequent to the initial recognition, goodwill is measured at cost less
accumulated impairment losses. Goodwill is presented with intangible assets.
Recognition
An intangible asset is an identifiable non-monetary asset without physical substance, held for use in the
production or supply of goods or services, for rental to others or for administrative purposes. An
intangible asset is recognized if it is probable that the future economic benefits that are attributable to the
asset will flow to the entity and the cost of the asset can be measured reliably. An intangible asset is
initially measured at cost. Expenditure incurred on an intangible item that was initially recognized as an
expense by the Group in previous annual Financial Statements or interim Financial Statements are not
recognized as part of the cost of an intangible asset at a later date.

Computer Software & Licenses

Cost of purchased licenses and all computer software costs incurred, licensed for use by the Group, which
are not integrally related to associated hardware, which can be clearly identified, reliably measured, and
it‟s probable that they will lead to future economic benefits, are included in the Statement of Financial
Position under the category „Intangible assets‟ and carried at cost less accumulated amortization andany
accumulated impairment losses.

Subsequent Expenditure
Expenditure incurred on software is capitalized only when it is probable that this expenditure will enable
the asset to generate future economic benefits in excess of its originally assessed standard of performance
and this expenditure can be measured and attributed to the asset reliably. All other expenditure is
expensed as incurred.
Goodwill is measured at cost less accumulated impairment losses.

Amortization of Intangible Assets

Intangible Assets, except for goodwill, are amortized on a straight–line basis in the Statement of Profit or
Loss from the date when the asset is available for use, over the best of its useful economic life based on a
pattern in which the asset‟s economic benefits are consumed by the Group. Amortization methods, useful
lives, residual values are reviewed at each financial year end and adjusted if appropriate. The Group
assumes that there is no residual value for its intangible assets.
De-recognition of Intangible Assets
The carrying amount of an item of intangible asset is derecognized on disposal or when no future
economic benefits are expected from its use. The gain or loss arising on de recognition of an item of
intangible assets is included in the Statement of Profit or Loss when the item is derecognized.
5.10. Investment Property
Investment property is the land or building or both held either for rental income or for capital
appreciation or for both, but not for sale in ordinary course of business and owner occupied property. The
Group holds investment property that has been acquired through the enforcement of security over the
loan and advances.
Investment property is measured at cost. The panchakrit value of the property that has been acquired
through the enforcement of security over the loans and advances have been considered as the cost of the
property.
Investment properties are derecognized when they are disposed of, or permanently withdrawn from use
since no future economic benefits are expected. Any gain or loss on disposal of an investment property is
recognized in profit or loss. When the use of a property changes such that it is reclassified as property and
equipment, its fair value at the date of reclassification becomes its cost for subsequent reporting.

5.11. Income Tax

Income Tax expense comprises current tax and deferred tax. Current tax and deferred tax are recognized
in profit or loss except to the extent they relate to the items recognized directly in equity or in other
comprehensive income.
a) Current Tax
Current tax is the tax payable or receivable on the taxable income or loss for the year using tax rates that
are enacted or substantially enacted at the reporting date, and any adjustment to tax payable in respect of
previous years.
b) Deferred Tax
Deferred tax is recognized in respect of temporary differences between the carrying amount and tax base
of assets and liabilities; and carry forward of unused tax losses. Deferred tax is measured at the tax rate
that is expected to be applied to temporary differences when they reverse, using tax rate enacted or
substantially enacted at the reporting date. Deferred tax assets are recognized only to the extent that it is
probable that future taxable profits will be available against which it can be utilized. Deferred tax assets
are reviewed at each reporting date and appropriately adjusted to reflect the amount that is reasonably/
virtually certain to be realized.Deferred tax asset and deferred tax liabilities are offset if all of the
following conditions met:
a) if there is a legally enforceable right to offset the current tax liabilities and assets;
b) the taxes are levied by the same authority on the same tax entity; and
c) the entity intends to settle the current tax liabilities and assets on net basis or the tax assets and
liabilities will be realized simultaneously.

5.12. Provisions and Contingent Assets/ Liabilities

The Group recognizes a provision if, as a result of past event, the Group has a present constructive or
legal obligation that can be reliably measured and it is probable than an outflow of economic benefit will
be required to settle the obligation. A disclosure for 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. When
there is a possible obligation or a present obligation in respect of which the likelihood of outflow of
resources is remote, no provision or disclosure is made.
A provision for onerous contract is recognized when the expected benefits to be derived by the Group
from a contract are lower than the unavoidable cost of meeting its obligation under the contract.
Provisions are reviewed at each reporting 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. Contingent assets are not recognized in the financial statements. However, contingent assets are
assessed continually and if it is virtually certain that an inflow of economic benefits will arise, the asset
and related income are recognized in the period in which the change occurs.
Liabilities on account of derivative contracts are reported under Contingent Liabilities under sub- heading
Outstanding Liabilities for Forward Exchange Contract. These include notional principal on outstanding
forward rate agreements. The Forward Exchange Contract is marked to market and resulting difference is
recognized in Statement of Profit or Loss. The difference payable/ receivable that arises at the time
settlement of Forward Exchange Contract is recognized at the time of settlement.

5.13. Deposits, Debt Securities Issued and Subordinated Liabilities

Deposits, debt securities issued and subordinated liabilities are the Group‟s sources of debt funding.
Deposits comprises of financial liabilities incurred by the Group on account of deposit amount held of the
customers and other Banks and Financial Institutions.
Debt securities issued are financial liabilities instrument issued to raise fund for the Group.
Subordinated Liabilities are debt instruments issued by under the conditions of subordinate priority
relative to other liabilities incurred by the Group.
Deposits, debt securities issued and subordinated liabilities are initially measured at fair value minus
incremental direct transaction costs, and subsequently measured at their amortized cost using the effective
interest method.
5.14. Revenue Recognition
Revenue comprises of interest income, fees and commission, foreign exchange income, cards income,
disposal income, etc. Revenue is recognized to the extent it is probable that the economic benefits will
flow to the Group and the revenue can be reliably measured. Revenue is not recognized during the period
in which its recoverability of income is not probable. The bases of incomes recognition are as below:
a) Interest income
As per the requirement of NFRS, interest income is recognized in profit or loss using effective interest
method, except for those classified at fair value through profit or loss. Effective interest rate is the rate
that exactly discounts the estimated future cash payments and receipts through the expected life of
financial asset or liability to the carrying amount of the asset or liability. The effective interest rate is
calculated on initial recognition of the financial asset or liability by estimating the future cash flows after
considering all the contractual terms of the instrumentbut not future credit losses. The calculation of
effective interest rate includes all transactions cost and fee and points paid or received that are integral
part of the effective interest. The transactions cost and fees and points that are not material ie. below or
equal to 1% of financial asset or liability and for financial asset or liability with tenure of upto 1 year
have been recognized directly in Statement of Profit or Loss and not considered in the calculation of
effective interest rate. The transaction costs include incremental costs that are directly attributable to the
acquisition or issue of financial assets.
Interest income presented in statement of profit or loss includes:
 Interest income on financial assets measured at amortized cost calculated on an effective interest rate
method except for impaired loans and advances. These financial assets include investment in
government securities, investment in corporate bonds, investment in NRB Bond and deposit
instruments, reverse repos, inter bank lending, etc.
 Interest on investment securities measured at fair value is calculated on effective interest rate.
 Income on discounted instruments like bills purchased, documents negotiation is recognized over the
period of discounting on accrual basis using effective interest rate.
Interest income on all trading assets are considered to be incidental to the Group‟s trading operations and
are presented together with all other changes in fair value of trading assets and liabilities in net trading
income.
Revenue is recognized only when it is probable that the economic benefits associated with the transaction
will flow to the entity. In some cases, this may not be probable until the consideration is received or until
an uncertainty is removed.
Interest income on Loans and Advances is recognized as per the guideline on recognition of interest
income, 2019 issued by NRB.
b) Fees and Commission
Fees and commission income that are integral to the effective interest rate on a financial asset are
included in measurement of effective interest rate. Other fees and commission income including
management fee, service charges, syndication fee, forex transaction commission, commission of issue of
letter of credit and guarantee are recognized as the related services are performed. When the loan
commitment is not utilized to the extent of approved limit, the related commitment fees are recognized on
undrawn amount on straight line basis over the period of commitment. Following bases are adopted for
recognition of fees and commission
• Commission on guarantees issued by the Group is recognized as income over the period of the
guarantee, except for guarantee commission not exceeding Rs 10 thousands, which is recognized at
the time of its issue.
• Commission on sight Letters of Credit (LC) issued by the Group is recognized as income at the time
of issue of the LC whereas income from time LC is recognized over its period on accrual basis.
• Other fees and commission income are recognized on accrual basis.
c) Dividend Income:
Dividend on investment in resident company is recognized when the right to receive payment is
established. Dividend income are presented in net trading income, net income from other financial
instruments at fair value through profit or loss or other revenue based on the underlying classification of
the equity instruments.

d) Net Trading Income

Trading income/ loss is recognized for all realized interest, dividend and foreign exchange differences
including any unrealized changes in fair value of trading assets and liabilities. The trading income and
loss are netted off and disclosed separately in Statement of Profit or Loss.

e) Net income from other financial instruments at fair value through profit or loss
Net income from other financial instruments at FVTPL relates to non-trading derivatives held for risk
management purposes that do not form part of qualifying hedge relationships, financial assets and
financial liabilities designated as at FVTPL and non-trading assets mandatorily measured at FVTPL. The
line item includes fair value changes, interest, dividends and foreign exchange differences.

5.15. Interest Expense

Interest expense on all financial liabilities including deposits are recognized in profit or loss using
effective interest rate method. Interest expense on all trading liabilities are considered to be incidental to
the Group‟s trading operations and are presented together with all other changes in fair value of trading
assets and liabilities in net trading income.

5.16. Employee Benefits

a) Short Term Employee Benefits
Short term employee benefit obligations are measured on an undiscounted basis and are expensed as the
related service is provided. A liability is also recognized for the amount expected to be paid under bonus
required by the Bonus Act, 2030 to pay the amount as a result of past service provided by the employee
and the obligation can be estimated reliably under short term employee benefits.
Short-term employee benefits include all the following items (if payable within 12 months after the end
of the reporting period):

 wages, salaries and social security contributions;

 profit-sharing and bonuses; and
 non-monetary benefits
b) Post Employment Benefit Plan
Post employment benefit plan includes followings:
i. Defined Contribution Plan
A defined contribution plan is a post-employment benefit plan under which an entity pays a fixed
contribution to a separate entity and has no legal or constructive obligation to pay future amounts.
Obligations for contributions to defined contribution plans are recognized as personnel expense in
profit or loss in the periods during which the related service are rendered by employees. Pre-paid
contributions are recognized as an asset to the extent that cash refund or reduction in future payments
is available. Contributions to a defined contribution plan being due for more than 12 months after the
end of the period in which the employee render the service are discounted at their present value. The
following are the defined contribution plan provided by the Group to its employees:
 Employees Provident Fund
In accordance with law, all employees of the Group are entitled to receive benefits under the
provident fund, a defined contribution plan in which both the employee and the Group
contribute monthly at a pre determined rate (currently, 10% of the basic salary plus grades).
Group does not assume any future liability for provident fund benefits other than its annual
contribution.

ii. Defined Benefit Plan

A defined benefit plan is a post-employment benefit plan other than a defined contribution plan. The
Group‟s net obligation in respect of defined benefit plans is calculated separately for each plan by
estimating the amount of future benefit that employees have earned in return for their service in
current and prior periods. That benefit is discounted to determine its present value. Any
unrecognized past service costs and the fair value of any plan assets are deducted. The discount rate
is the yield at the reporting date on high quality corporate bonds, that have maturity dates
approximating the terms of the Group's obligation and that are denominated in the currency in which
the benefits are expected to be paid. The calculation of obligation is performed annually by a
qualified actuary using projected unit credit method.
The Group recognizes all remeasurement gains and losses arising from defined benefit plans
immediately in other comprehensive income and all expenses related to defined benefits plans in
employee benefit are expensed in profit or loss.
The Gratuity is the defined benefit plans provided by the Group to its employees:
 Gratuity
Group provides for gratuity on actuarial basis covering eligible employees joining prior to
Bhadra 1, 2074 and on accrual basis covering employees joining on or after Bhadra 1, 2074 as
per terms of Employee Service Byelaws of the Group.

c) Other Long Term Employee Benefits

Other long term employee benefits include benefits that are not expected to be settled wholly before
twelve months after end of the fiscal year in which employees render the related service.
The Group recognizes all remeasurement gains and losses including all service cost and interest cost
related to other long term employee benefits are expensed in profit or loss account.
The Sick and Home Leave are the other long term employee benefit plans provided by the Group to its
employees:
 Leave Salary
The employees of the Group are entitled to carry forward a part of their unavailed/ unutilized
leave subject to a maximum limit. The employees can encash unavailed/ unutilized leave
partially in terms of Employee Service Byelaws of the Group. The Group accounts for the
liability for entire accumulated outstanding leave balance on actuarial basis.
d) Termination Benefits
Termination benefits are recognized as expense when the Group is demonstrably committed, without
realistic possibility of withdrawal, to a formal plan to provide termination benefits to employees as a
result of an offer made to encourage voluntary redundancy. Termination benefits are recognized if the
Group has made an offer for voluntary redundancy, it is probable that the offer will be accepted and the
number of acceptance can be measured reliably. If the benefits are payable in more than 12 months after
the reporting date, they are discounted to their present value.

5.17. Leased Assets:

The determination of whether an arrangement is a lease or it contains a lease, is based on the substance of
the arrangement and requires an assessment of whether the fulfillment of the arrangement is dependent on
the use of a specific asset or assets and the arrangement conveys a right to use the asset.

Finance Lease
Agreements which transfer to counterparties substantially all the risks and rewards incidental to the
ownership of assets, but not necessarily legal title, are classified as finance lease. When group is the
lessor under finance lease, the amounts due under the leases, after deduction of unearned interest income,
are included in „Loans to & receivables from other customers‟, as appropriate. Interest income receivable
is recognized in „Net interest income‟ over the periods of the leases so as to give a constant rate of return
on the net investment in the leases.
When the Group is a lessee under finance leases, the leased assets are capitalized and included in
„Property, plant and equipment‟ and the corresponding liability to the lessor is included in „Other
liabilities‟. A finance lease and its corresponding liability are recognized initially at the fair value of the
asset or if lower, the present value of the minimum lease payments. Finance charges payable are
recognized in „Interest expenses‟ over the period of the lease based on the interest rate implicit in the
lease so as to give a constant rate of interest on the remaining balance of the liability.

Operating Lease
All other leases are classified as operating leases. When acting as lessor, the Group includes the assets
subject to operating leases in „Property, plant and equipment‟ and accounts for them accordingly.
Impairment losses are recognized to the extent that residual values are not fully recoverable and the
carrying value of the assets is thereby impaired.
When the Group is the lessee, leased assets are not recognized on the Statement of Financial Position.
Rentals payable and receivable under operating leases are accounted for on a straight-line basis over the
periods of the leases and are included in „Other operating expenses‟ and „Other operating income‟,
respectively.
Payments made under operating lease are recognized in profit or loss on straight line basis over the term
of the lease. Lease incentives received are recognized as an integral part of the total lease expense, over
the term of the lease.
Minimum lease payments made under finance lease are apportioned between the finance expense and
reduction of outstanding liabilities. The finance expense is allocated to each period during the lease term
so as to produce the constant periodic rate of interest on the remaining balance of liabilities.
Contingent lease payments are accounted for by revising the minimum lease payments over the remaining
term of the lease when the lease adjustment is confirmed.

5.18. Financial Guarantees and Loan Commitments

Financial guarantees are contracts that require the Group to make specified payments to reimburse the
holder for a loss that it incurs because a specified debtor fails to make payment when it is due in
accordance with the terms of a debt instrument. „Loan commitments‟ are firm commitments to provide
credit under pre-specified terms and conditions.
 Financial guarantees and loan commitments are disclosed as contingent liabilities and not recorded in
Statement of Financial Position. Liabilities arising from financial guarantees and loan commitments are
settled and included in loans and advances as receivables from debtors (borrowers).

5.19. Share Capital and Reserves

a) Share Capital
The Group classifies the capital instruments as equity instruments or financial liabilities in accordance
with the substance with the contractual terms of the instruments. Equity is defined as residual interest in
total assets of an entity after deducting all its liabilities. Common shares are classified as equity of the
Group and distributions thereon are presented in statement of changes in equity.
The Group is required to maintain the capital adequacy ratio imposed by the regulator. The ratio is fixed
at 11% for current year and the Group has maintained the required ratio.
b) Share Issue Costs
Incremental costs directly attributable to issue of an equity instruments are deducted from the initial
measurement of the equity instruments.
5.20. Earnings per share
The Group presents basic and diluted earnings per share (EPS) data for its ordinary shares. Basic EPS is
calculated by dividing the profit or loss attributable to ordinary shareholders of the Group by the
weighted average number of ordinary shares outstanding during the period. Diluted EPS is determined by
adjusting the profit or loss attributable to ordinary shareholders and the weighted average number of
ordinary shares outstanding for the effects of all dilutive potential ordinary shares.

5.21. Non- Current Assets Held for Sale

Non-current assets (or disposal groups) are classified as assets held for sale and carried at the lower of
carrying amount and fair value less costs to sell if their carrying amount is recovered principally through
a sale transaction rather than through continuing use. The assets are not depreciated or amortized while
they are classified as held for sale. Any impairment loss on initial classification and subsequent
measurement is recognized as an expense. Any subsequent increase in fair value less costs to sell (not
exceeding the accumulated impairment loss that has been previously recognized) is recognized in profit
or loss.

5.22. Impairment of non financial assets

The Group assesses at each reporting date whether there is an indication that an asset may be impaired. If
any indication exists, or when annual impairment testing for an asset is required, the Group estimates the
asset‟s recoverable amount. An asset‟s recoverable amount is the higher of an asset‟s fair value of the
Cash Generating Unit‟s (CGU) less costs to sell and its value in use. Where the carrying amount of an
asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its
recoverable amount.
In assessing value in use, the estimated future cash flows are discounted to their present value using a
pre-tax discount rate that reflects current market assessments of the time value of money and the risks
specific to the asset, in determining fair value less costs to sell, an appropriate valuation model is used.

5.23. Events after the reporting period

Where necessary all material events after the reporting date have been considered and appropriate
adjustments or disclosures have been made in the Financial Statements as per the NAS 10 –Events After
the Reporting Period.

6. Segment Information
The Group has identified the reportable segment as the business activities from which it earns revenues
and incurs expenses whose operating results are reviewed by the management to make decision about
resource allocation to each segment and assess its performance.
The Bank comprises Banking, Treasury, Cards and Remittance as major business segments on the nature
of products and services of the Bank. All transactions between segments are conducted on pre-determined
transfer price with Corporate Office. Treasury Department acts as the fund manager of the Bank.
Segment results that have been reported include items directly attributable to a segment as well as those
that can be allocated on a reasonable basis. The income, expenses, assets & liabilities that cannot be
allocated to segments identified or those related to corporate office are unallocated. Unallocated items
comprise mainly corporate assets (primarily the Bank‟s corporate building), head office expenses, and tax
assets and liabilities that are categorized as the Banking.
 A. Information about reportable segments

Particulars Banking Treasury Card Remittance Total

Current Qtr. Corresponding Current Qtr. Corresponding Current Corresponding Current Corresponding Current Qtr. Corresponding
Prev. Yr. Qtr. Prev. Yr. Qtr. Qtr. Prev. Yr. Qtr. Qtr. Prev. Yr. Qtr. Prev. Yr. Qtr.
Revenues from 912,067,803 702,383,671 88,989,829 119,923,918 4,890,868 11,072,520 1,707,955 3,225,805 1,007,656,455 836,605,914
external customer
Intersegment 391,231,758 226,410,042 (127,822,839) (205,084,871) - - 263,408,919 21,325,171
Revenues
Segment Profit 1,114,991,625 706,583,264 112,993,520 160,386,050 203,171 8,814,333 2,749,946 3,886,892 1,230,938,262 879,670,539
(loss) before Tax
Segment assets 92,734,844,997 90,105,607,314 23,599,304,792 4,195,683,112 116,289,055 63,870,665 8,934,543 18,456,038 116,459,373,387 94,383,617,129
Segment Liabilities 100,977,998,888 77,555,153,327 3,152,525,100 4,933,902,846 65,700,583 19,607,606 5,607,363 7,314,595 104,201,831,934 82,515,978,374

B. Reconciliation of reportable segment profit or loss

Particulars Current Quarter Corresponding

Previous Quarter

Total Profit before Tax for 1,230,938,262 879,670,539

reportable segments

Profit before Tax for other segments

Elimination of inter segment profit

Elimination of discontinued
operation

Unallocated amounts:

- Other Corporate expenses (494,379,222) (380,857,132)

Profit before Tax 736,559,040 498,813,407

7. Related party disclosures

7.1 Related Party Disclosure of the Bank

The related parties of the Bank which meets the definition of related parties as defined in “NAS 24
Related Party Disclosures” are as follows:
i. Key Management Personnel (KMP)
The key management personnel are those persons having authority and responsibility of planning,
directing and controlling the activities of the entity, directly or indirectly including any director. The
key management of the Bank includes members of its Board of Directors, Chief Executive Officer, and
other higher level employee of the Bank. The name of the key management personnel who were
holding various positions in the office during the year were as follows:
Name of the Key Management Personnel Post

Mr. Rajan Singh Bhandari BOD Chairman

Mr. Prakash Chandra Mainali Director

Mr. BijayaDhoj Karki Director

Mrs. Seeta Karki K.C. Director

Mr. Prabal Jung Pandey Director

Mr. Sajan Sharma Director

Mr. Sudesh Khaling Professional Director

Mr. Ganesh Raj Pokharel Chief Executive Officer

Mr. Bodh Raj Devkota Deputy Chief Executive Officer

Mr. Sumit Babu Khatri Officiating Deputy Chief Executive Officer

Mr. Ramdhan Shrestha Assistant Chief Executive Officer

Mr. Paras Kumar Kafle Assistant Chief Executive Officer

Assistant Chief Executive Officer/Company

Mr. Rajendra Lal Shrestha Secretary

Ms. Umang Sharma Assistant Chief Executive Officer

Mr. Sanjeeb Kumar Shrestha Chief Information Technology Officer

Mr. Pramesh Raj Kayastha Chief Finance Officer

ii. Subsidiary Company Shareholding %

Name and percentage of shareholding in Subsidiary Company is as below:
a. CBIL Capital Limited 58.60%
b. CBIL Securities Limited 100%

iii. Associate Companies Shareholding %

a. Nepal Electronic Payment Systems Limited 9.09%
b. Nepal Clearing House Limited 1.97%

iv. Fund Sponsor

a. Citizens Mutual Fund- I
b. Citizens Mutual Fund- II
i.Compensation to Key Management Personnel
The members of Board of Directors are entitled for meeting allowances. Salary and allowances are
provided to Chief Executive Officer (CEO) and other member of Key Management Personnel (KMP).
Salary and Allowances paid to the Chief Executive Officer is based on the contract entered by the Bank
with him whereas compensation paid to other member of KMP are governed by Employees Byelaws
and decisions made by management from time to time in this regard. In addition to salaries and
allowances, non- cash benefits like vehicle facility, subsidized rate employees loan, termination
benefits are also provided to KMP.
The details relating to compensation paid and expenses incurred to key management personnel
(directors only) were as follows:
Particulars Current Year (NPR)
Meeting Fees 747,000
Other Board Facility 213,000
Other Expenses 38,014
Total 998,014

The details relating to compensation paid to key management personnel (CEO only)were as follows:
Particulars Current Year (NPR)
Short term employee benefits 3,586,347
Post- employment benefits* 210,000
Other long term benefits** -
Total 3,796,347

The details relating to compensation paid to key management personnel other than directors and CEO
were as follows:

Particulars Current Year

(NPR)
Short term employee benefits 9,069,250
Post- employment benefits* 314,132
Other long term benefits** -
Total 9,383,382

*Post- employment benefits include Provident Fund and Gratuity. Provident Fund is deposited in an
independent institution and Gratuity is provided for as per actuarial valuation against which investment
is made in an independent planned asset.
**Other long term employment benefit includes Home Leave and Sick Leave encashment over and
above the accumulation limit set as per Employee Byelaws of the Bank.
*** KMP also gets accidental and medical insurance, vehicle, fuel, lunch and mobile facilities as per
Employee Byelaws of the Bank.

ii.Transaction with Subsidiary

CBIL Capital Limited

The Bank has made strategic investment to broaden the scope of service and source of income by
investing in share capital of CBIL Capital Limited which is the subsidiary company of the Bank. The
Bank holds 58.60 % controlling interest in the subsidiary. Similarly, Senior Manager of the Bank is the
Chairman of CBIL Capital. CRO and CFO of the Bank are directors of the subsidiary.
The subsidiary is engaged in Merchant Banking Services.
1. The Bank has entered into a Management Service Agreement (MSA) with Subsidiary for
providing management services. Provisions laid in MSA are in line with arms-length principle.
2. An agreement has been made between the Bank and the Subsidiary Company to provide following
facilities to Subsidiary Company by the Bank for a monthly fee of NPR 600,000:
a) The Bank has the right to appoint the CEO of CBIL Capital.
b) The Bank provides technical assistance required for Computer hardware, software and
network maintenance.
c) Internal audit team of the Bank will handle all audit work of its subsidiary and will submit
quarterly report to its Audit Committee.
d) Bank has also agreed to provide legal consultancy and vehicle facility to the Subsidiary
Company.
e) The Bank also provides investment management services through the Bank‟s branch network.

3. Similarly, Bank has rented its building located in Dillibazaar, Kathmandu to the Subsidiary
Company with the agreement to pay Monthly Rent of NPR 110,000 till Magh 2076 which was
revised from Falgun 2076 with monthly rent of NPR 90,750/-, which will be increased by 10% in
every 2 year.
4. All receipt and payment transactions entered into by the Bank with Subsidiary were made net of
TDS. TDS has been duly deposited at Tax Office.
5. CBIL Capital Ltd holds deposit accounts with the Bank which has a balance of NPR 260,900,264
as on 30thAshwin 2077.
6. The overall transactions with the Subsidiary included in Financial Statements of the Bank has been
tabulated below:

Particulars NPR
Statement of Profit or Loss
Rental Income 299,475
Management Fee income 1,800,000
Server & Database Rental Income 595,833
Dividend Income -
Interest Income -
Interest on advance to Subsidiary -
Fees and Commission -
Total Income 2,695,308

Interest Paid to Subsidiary 3,000,649

RTS fee to Subsidiary 25,000
Total Expenses 3,025,649
Particulars NPR
Statement of Financial Position
Deposit of Subsidiary 260,900,264
Advance to Subsidiary -
Dividend Payable to Shareholders of the Bank held on behalf of
the Bank by the subsidiary 126,876,562

The following table summarizes the financial information of CBIL Capital Limited in its own financial
statements:
Particulars NPR
Non- Current Assets 103,417,163
Current Assets 314,635,500
 Non- Current Liabilities 365,862
Current Liabilities 180,862,551
Net Assets Attributable to Share Holders 236,824,251
Revenue 16,019,701
Profit from Continuing Operations 6,979,217
Other Comprehensive Income -
Total Comprehensive Income 6,979,217

CBIL Securities Limited

The Bank has made strategic investment to broaden the scope of service and source of income by
investing in share capital of CBIL Securities Limited which is the subsidiary company of the Bank. The
Bank holds 100 % controlling interest in the subsidiary. Similarly, the Bank has deputed ACEO of the
Bank as the Chairman of the subsidiary and 3 Senior level staffs of the Bank has been deputed as
directors of the subsidiary.
The subsidiary is engaged in Securities Brokerage Services.
1. An agreement has been made between the Bank and the Subsidiary Company to provide following
facilities to Subsidiary Company by the Bank:
a) Bank has nominated its ACEO as a Chairman and 3 senior level staffs as the directors of the
subsidiary company.
2. Similarly, Bank has rented out its building located in Kupondole, Lalitpur to the Subsidiary
Company with the agreement to pay Monthly Rent of NPR 60,000 which will be increased by 10%
in every 2 year, effective from the date of commencement of operation of CBIL Securities
Limited.
3. All receipt and payment transactions entered into by the Bank with Subsidiary were made net of
TDS. TDS has been duly deposited at Tax Office.
4. CBIL Securities Ltd holds a deposit account with the Bank which has a balance of NPR
54,108,008.00 as on 30th Ashwin 2077.
5. The overall transactions with the Subsidiary included in Financial Statements of the Bank has been
tabulated below:

Particulars NPR
Statement of Profit or Loss
Total Income -
Interest Paid to Subsidiary 919,058
Total Expenses 919,058
Statement of Financial Position
Deposit of Subsidiary 54,018,008

The following table summarizes the financial information of CBIL Securities in its own financial
statements:
Particulars NPR
Non- Current Assets -
Current Assets 54,363,429
Non- Current Liabilities -
Current Liabilities 28,250
Net Assets Attributable to Share Holders 54,335,179
Revenue 919,058
Profit from Continuing Operations 641,221
Other Comprehensive Income -
Total Comprehensive Income 641,221
iii. Transaction with Associates
Investments in Associates have been reported in the statement of financial position of the group and are
initially recognized at cost and subsequently accounted for using the equity method. Similarly, the Bank
has accounted for investments in associates at cost in separate financial statements.
The Bank has significant influence, but not control, over the financial and operating policies of the
company even if the Manager of the Bank is the representative director on behalf of the Bank in the
company.

Nepal Electronic Payment Systems Limited (NEPS)

NEPS is formulated as a consortium of seven national level commercial Banks, with aim to pool the
resources of these Banks together and establish a common platform, which will be more secure, reliable
and able to encompass the rapid growth of new technologies in electronic payments.
Executive member Mr. Sanjeeb Kumar Shrestha is the Board member in NEPS. The Bank holds
investment of Rs. 16,000,000 in share capital of NEPS which comes to 9.09 % of the total capital of
NEPS.
Agreement has been entered by the Bank with NEPS for availing services related to debit cards and credit
cards for which Bank makes the payment at an arm's length price.
The aggregate amounts of the transactions during the year from the relevant related party at the
year end are summarized below:

Particulars NPR
Payments made towards transaction fees 1,276,897

The investment in NEPS has been accounted for at cost in separate financial statement of the Bank and as
per equity method in consolidated financialstatement.
Nepal Clearing House Limited (NCHL)
Nepal Clearing House Ltd. (NCHL) is a public limited company established on 23 rd December 2008
(9thMangsir 2065) under the leadership and guidance of Nepal Rastra Bank (The Central Bank of
Nepal). It has the equity participation from Nepal Rastra Bank, commercial Banks, development
Banks, finance companies and Smart Choice Technologies (SCT), a private card switch operator.
NCHL has the strategic objectives to establish multiple payments, clearing and settlement systems in
Nepal with long term objective to establish a national payments gateway to facilitate electronic
payments and financial transactions within the country. Electronic Cheque Clearing (NCHL-ECC) and
Inter Bank Payment System (NCHL-IPS) are the national payment systems that are currently in
operation.
Executive member Ms. Umang Sharma is the Board member of NCHL. The Bank holds investment of
Rs. 4,250,200 in share capital of NCHL which comes to 1.97 % of the total capital of NCHL.
Agreement has been entered by the Bank with NCHL for availing services related to Electronic Cheque
Clearing (ECC) and Inter- bank Payment System (IPS) for which Bank makes the payment at an arm‟s
length price. The aggregate amounts of expenses arising from the transactions during the year from the
relevant related parties at the yearend are summarized below:

Particulars NPR
Payments made towards transaction fees 1,053,924
Dividend Received net of tax -

The investment in NCHL has been accounted for at cost in separate financial statement of the Bank and
as per equity method in consolidated financialstatement.
 iv. Transaction with Citizens Mutual Fund- I

The Bank is the shareholder holding substantial interest and the sponsor of the Citizens Mutual Fund- I
under the Citizens Mutual Fund (the Fund) registered with Securities Board of Nepal (SEBON) under
the Mutual Fund Regulation 2067 as a close ended, equity oriented fund.

The Scheme started its operation on 20th Falgun 2074 with the maturity period of 7 years (i.e. up to
19th Falgun 2081). It was listed in Nepal Stock Exchange on 3 rd Baisakh 2075.

The Bank has invested NPR 150,000,000 in Citizens Mutual Fund- I which has been marked to market
and disclosed in Investment measured at Fair Value through Other Comprehensive Income.

The Scheme has Bank Balance of NPR 38,537,419 as on Balance Sheet date with the Bank.

v.Transaction with Citizens Mutual Fund- II

The Bank is the shareholder holding substantial interest and the sponsor of the Citizens Mutual Fund-
II under the Citizens Mutual Fund (the Fund) registered with Securities Board of Nepal (SEBON)
under the Mutual Fund Regulation 2067 as a close ended, equity oriented fund.

The Scheme started its operation on 22nd Ashadh 2076 with the maturity period of 7 years (i.e. up to
21st Ashadh 2083).

The Bank has invested NPR 150,000,000 in Citizens Mutual Fund- II.

The Scheme has Bank Balance of NPR 22,171,582 as on Balance Sheet date with the Bank.

8. Dividends paid (aggregate or per share) separately for ordinary shares and other shares
The Bank has not paid any divided for ordinary shares till the reporting period.
9. Issues, repurchases and repayments of debt and equity securities
No any debt and equity securities are issued during the reporting period.

10. Events after interim period

There are no material events after Balance Sheet Date affecting financial status of the Group
as on Ashwin end, 2077.

11. Effect of changes in the composition of the entity during the interim period including
merger and acquisition

There is no any merger or acquisition effecting the changes in the composition of the entity
during the interim period as on Ashwin end, 2077.

12. Above figures reported in consolidated interim financial report are subject to change upon
otherwise instructions of statutory auditor and/or regulatory authorities.