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Sunrise Bank Limited
Notes to Financial Statements
I"or the year ended 32 Asor 2075
Cash and Cash Equivalent
4.1
Group flank
Particulars 2074175 2073/74 2074175 2073/74 2072/73
Cash in Hand 1,535.255,221 1,473,431.130 1,535.25.221 1,473,431,130 1.167,577,937
Balances with BFIs 1,051,276,974 804,794.160 906,752.394 587.528,410 1,604.813,241
Moncy at Call and Short Notice - - - -
Other - - - - -
Total 2,586,532,195 2,278,225,290 2,442,007,615 2,060,959,540 2,772,391,178
Cash and cash equivalents include cash at vault and agency Rank account balances, which are subject to an insignificant risk of changes in value.
The fair value of cash is the carrying amount.
Cash at vault is adequately insured for physical and financial risks. The amount of cash at vault is maintained on the basis fo the regulatory, liquidity and business
requirements. To that extent there are regulatory and liquidity restrictions placed on the cash at vault. Cash held in ICY is subject to risk of changes in the foreign
exchange rates. These are closely monitored, and risks, are promptly managed.
Balance with BFls, and money at call and short notice have been classified as loans and receivablesand are subsequently measured at amortized costs.
Risks associated with these assets arc regularly assessed.
Due from Nepal Rastra Bank
4.2 Group Bank
Particulars 2074/75 2073174 2074175 2073/74 20721`73
Statutory Balances with NRB 5.032,987.845 7.496,218,748 5.032,987.845 7,496.218,748 3,809.454.948
Securities purchased under Resale Agreement . - -
Other Deposit and Receivable from NRB 67,699 - 67,699 - 415.350
Total 5,033,055,545 7,496,218,748 5,033,055,545 7,496,218,748 3,809,870,298
Statutory balances with NRB includes the CRR balance maintained with NRB.
The fair value of balance with the Nepal Rastra Bank is the carrying amount. Balance with central bank is categorized as loans and receivables to be subsequently
measured at amortised cost.
Balance with the central bask is principally maintained as a part of the regulatory cash reserve ratio required by the central bank. There are regulatory and liquidity
restrictions placed on the level of balance with central bank.
Placements with Banks and Financial Instutions
4.3
Group Bank
Particulars 2074175 207354 2074/75 2073/74 207253
Ptacment with Domestic BFIs 70,000.000 60,000,000 - - -
Placement with Foreign BFIs 3,869,629,863 3,239,928.896 3,869.629,863 3,358.047,347 2,618.168,668
Less: Allowances for Impairment - - - - -
Total 3,939,629,863 3,299,928,896 3,869,629,863 3,358,047,347 2,618,168,668
Derivative Financial Instruments
4.4
Group Bank
Particulars 2074/75 2073174 2074/75 2073/74 2072/73
Held fi)r Trading
Interest Rate Swap
Currency Swap - - - - -
Forward Exchange Contracts - - - - -
Others - - - - -
He/c/for Risk Management -
- - - - - Interest Rate Swap
Currency Swap - - -
Forward Exchange Contracts - 804.900 804.900 24,625,457
Others - - - -
'fetal - 804,900 - 804,900 24,625,457
Derivatives Financial Instruments is the net of forward debit and forward credit transacted for the purpose of risk management. It is revalued everyday on the basis of
average forex rate.
Other Trading Assets
4.5
Group ' Bank
Particulars 2074/75 2073/74 2074175 2073/74 2072/73
Treasury Bills - - - - -
Government Bonds - - - - -
NRB Bonds - - - - -
Domestic Corporate Bonds - - - - -
Equities 24.059,135 19,805,977 - - -
Other - - - -
Total 24,959,135 19,805,977 - - -
LA
-
Loans and Advances to BFIs 4.6
Particulars
Group
2074/75 2073174 2074/75
Bank
207354 2072/73
Loans to Micro-Finance Institutions 995,121,876 1,112,942,459 995,121.876 1,112.942.459 955,332,206
Other 4.465.704 415,037 4,465,704 415,037 214.167
Less: Allowances for Impairment - - - - -
Total 999.587,580 1.113,357,496 999,587,580 1.113,357,496 955,546,373
4.6.1 Allowances for Impairment
Balance at Shrawan 01
Impairment Losss for the year:
Charge for the year
Recoveries/Reversal
Amount Written Off
Balance at Asar End
Loans and Advances to Customers 4-7
Group Bank
Particulars 2074175 2073/74 2074/75 2073/74 2072/73
Loans and Advances measured at Amortized Cost 60,326,401.072 51,220,201,623 60,326,40 1072 51,220,201,623 43,241,059.664
Less: Impairment Allowances -
Collective Impairment (616,144.874) (563,840,428) (616,144,874) (563,840.428) (460.877.710)
Individual Impairment (496,704.808) (498,301.291) (496.704.808) (498.301.291) (419.541.294)
Net Amount 59,213,551,399 50,158 1059,904 59,213,551,390 50,158,059,904 42,360,640,660
Loans and Advances measured at FVTPL - -
Total 59,213,551,390 50,158.059,904 59,213,551,390 50,158.059,904 42,360,640,660
Following process has been adopted by the Bank to calculate loss as per incurred loss model.
The Bank has categorized total loan into 5 products namely Term Loan, Personal Loan, Home Loan, Hire Purchase, Short Term Loan. The loan has been classifed into
various period on the basis of due days as follows:
Ageing
CURRENT
- 01-30 DAYS
31-60 DAYS
61-90 DAYS
91-120 DAYS
121-150 DAYS
151-180 DAYS
180 DAYS AND ABOVE
The Loss rate on each period has been calculated by multiplying Probability of Defaull (PD) with Loss Gives Default (LGD).
Probability of Default has been calculated on the basis of probability matrix by taking 48 months loan data as the basis.
For the purpose of calcualtion of Loss Given Default (LGD), the loan which has been categorized as loss as per NRB directive has been taken and the recovery history
of the same has been analyzed upon to reach the LGD.
The individually impaired loan has been substracted from the total loan and the same has been multiplied by loss rate to calculate collective impairment.
Total impairment is the sum of the collective and individual impairment.
Loans and advances above 40 million are considered for incurred loss model impairment which approximately come at 35% of total portfolio.
Accrued Interest Receivable on loans have been considered under Loans and Advances measured at Amortized Cost.
4.7.1: Analysis of Loans and Advances - By Product
Group Bank
Particulars 2074/75 2073/74 2074175 2073/74 2072/73
Product Term Loans 8,511.179,712 6,002,251,943 8,511.179,712 6,002.251,943 4,193,427,504
Overdraft 12,680,678,356 11.650,209,057 12,680,678.356 11.650,209.057 11.127,779,336
Trust Receipt/Import Loans 1,340.111,534 850,832,584 1,340.111.534 850,832,584 1.421,982,853
Demand and other Working Capital Loans 7,691,405,393 5.580,866,374 7,691,405,393 5,580,866,374 9.078,464,259
Personal Residential Loans 8,126,224.951 6,703.095,699 8,126,224,951 6,703,095,699 4,297,442,503
Real Estate Loans 3,564,842.036 3,703,270,987 3,564,842,036 3,703,270.987 2,339.989,172
Margin Lending Loans 1,916,942,664 2,469,806,993 1,916,942.664 2,469.806,993 1,839,992,494
Hire Purchase Loans 5,158.223,654 5,067,377,757 5,158,223.654 5,067.377,757 3,865.502,113
Deprived Sector Loans 3,233.706,408 2.812,900,444 3,233,706,408 2.812,900,444 1,939,100,452
Bills Purchased 10,985 74,435.059 10.985 74,435,059 78.033,811
Staffs Loans 365,533,346 240,729.169 365.533.346 240.729,169 283.094.545
Other 7,327.391,819 5.711.396.448 7,327,391.819 5,711,396,448 2,612,081,594
Sub-Total 59,916,250,858 50.867.172,513 59,916,250,858 50.867,172,513 43,076,890,637
Interest Receivable 410,150.215 353.029,110 410,150,215 353.029.110 164,169,026
Grand Total 60,326,401,072 51,220,201.623 60,326.401,072 51,220,201,623 43,241,059,664
Gross Loans and Advances excluding Impairment has been considered above for analysis.
QO
4.7.2: Analysis of Loans and Advances - By Currency Group Bank
Particulars 2074175 2073174 2074/75 2073/74 2072/73
Nepalese Rupee 59.654.004.798 51211.285.323 59,654,004.798 51211,285,323 43.228.619,764
Indian Rupee - - - - - United States Dollar 645,910,265 8.916,300 645,910,265 8,916.300 12.439.900.00
Great Britain Pound - - - -
Euro 26,486,010 - 26,486,010 - -
Japanese Yen Chinese Yuan
Other - - - - -
Grand Total 60,326,401,072 51.220,201,623 60,326,401,072 51,220.201,623 43,241,059,664
4.7.3: Analysis of Loans and Advances - By Collateral
Loans and advances to customers are backed by collateral securities to mitigate default risk. The type of the collaterals corresponding to the loans and advances to
customers are given in the table below: Group Bank
Particulars 2074/75 2073/74 2074/75 2073/74 2072/73
Secured Moveable/lmmoveablc Assets 57,361,822.766 47,161,448,744 57,361,822,766 47.161,448,744 39,694,068,614
Gold and Silver 14.941.371 338,595,368 14,941,371 338,595,368 394,973.926
Guarantee of Domestic liFts . - - - -
Government Guarantee
Guarantee of International Rated Bank - - - -
Collateral of Export Document - - - - -
Collateral of Fixed Deposit Receipt 497,790,629 523.967,480 497,790,629 523,967,480 211,272,471
Collatereal of Government Securities - - - - 55,395,911
Counter Guarantee - -
Personal Guarantee 41.479.129 38,447,225 41,479.129 38,447.225 38.675,797
Other Collateral 2.388,402,268 3.149,276,195 2,388,402,268 3.149.276.195 2,846,672,945
Subtotal 60,304,436,163 51,211,735,011 60,304,436,163 51,211,735,011 43,241,059,664
Unsecured 21.964.909 8.466,612 21,964,909 8,466.612
Grand Total 60,326,401,072 51,220,201,623 60,326,401,072 51,220,201,623 43,241,059,664
4.7.4: Allowance for impairment Group Bank
Particulars 2074/75 2073/74 2074/75 2073/74 2072/73
Specific Allowance for Impairment Balance at Shrawan 01 498,301,291 419,541,295 498,301,291 419,541,295 717,725,619
Impairment Loss for the year (1,596,481) 78,759,996 (1,596,481) 78.759,996 (298,184,324)
Charge for the year 340,989,535 275.418,953 340,989,535 275.418.953 69,703.037
Recoveries/Reversals during the year (342,586.016) (196,658,957) (342,586,016) (196,658.957) (367,887,361)
Wrile-OfTs - - - - -
Exchange Rate Variance on Foreign Currency - -
Other Movement - - - -
Balance at Asar End 496,704,810 498,301,291 496,704,810 498,301,291 419,541,295
Collective Allowances for Impairment Balance at Sharawan 01 563,840,428 460,877,710 563,840,428 460,877,710 294,243,967
Impairment Loss for the year 52.304,444 102,962,718 52,304,444 102,962.7 18 166,633.743
Charge/(Reversal) for the year -
Exchange Rate Variance on Foreign Currency Other Movement - - -
Balance at Mar End 616,144,872 563,840,428 616,144,872 563,840,428 460,877.710
Total Allowances for Impairment 1,112,849,682 1,062.141,719 1,112,849,682 1,062,141,719 880,419,005
Investment Securities 4.8
Group Bank
Particulars 2074/75 2073/74 2074)75 2073/74 2072/73
Investment Securities measured at Amortized Cost 9,139,682.907 5,823,145,191 9,139,682,907 5,823,145.191 5,455,125,337
Investment in Equity measured at FVTOCI 580,775,479 345,505.514 580,775.479 345.505.514 390.039.864
Total 9,720,458,385 6,168,650,705 9,720,458,385 6,168,650,705 5,845,165,201
j:
8AN)
4.8.1: Investment Securities measured at Amortized Cost
Group Bank
Particulars 2074/75 2073/74 2074/75 2073/74 2072/73
Debt Securities - -
Government Bonds 5.941.300.000 4,013,800,000 5,941,300,000 4,013800,000 3,114,625,000
Government Treasury Bills 1,353.010,455 1,368,215.700 1.353,010,455 1.368,215,700 680,928,998
Nepal Rastra Bank Bonds - - - - 1,630,350,000
Nepal Rastra Bank Deposit Instruments 1.639.480,000 293,275,000 1.639,480,000 293,275,000
Other 205,892,451 147.854.491 205.892.451 147,854,491 29,221.339
Foreign Currency Bond 111,150,776 107,038,188 111,150,776 107,038,188 -
Interest Receivables 94,741,676 40.816.303 94,741,676 40.816.303 29,221339
Less: Specific Allowances for Impairment
Total 9,139,682,907 5,823,145,191 9,139,682,907 5,823,145,191 5,455,125,337
Treasury bills have been classifed as financial assets designated at fair value through statement of profit or loss (S0PL). Valuation of these instruments is assessed on
the basis of similar bills on issue. These bills have the maturity period of less than one year and no variation has been observed from subsequent bills on issue, that
have been considered as o,bservablc inputs.
These instruments have been considered as risk free instruments. Considering the short maturity period of these instruments, risks ass result of changes in macro
economic conditions is assessed to be nominal. These are highly liquid instruments and can be converted into cash immediatley on requirement.
Government bonds have been classified as held to maturity instrument as the Bank has intention and capacity to hold these instruments until their maturity. These
instruments are carried at amortised costs.
These instruments are issued by the government. Bank considers that the fixed return on these bonds adequately compensate for associated risks.
Interest receivable includes interest accrued on above classified investment securities.
4.8.2: Investment in Equity measured at FVTOCI
Group Bank
Particulars 2074/75 2073/74 2074/75 2073/74 2072/73
Equity Instruments
Quoted Equity Securities 559,809,479 267,694,359 559,809,479 267,694,359 370,280,864
Unquoted Equity Securities 20.966.000 79.926,375 20.966.000 79,926,375 19,865,234
Total 580,775,479 347,620.734 580,775,479 347,620,734 390,146,098
new include equity instruments in different companies. None of these investments result in control or significant influence over the invested entities. These
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Current Tax Assets
Particulars
Current Tax Assets
Current year Income Tax Assets
Tax Assets of Prior Periods
4.9
Group Bank 2074/75 2074175 2074/75 2073/74 2072/73
48,693,154 169,384,181 43.085.259 164,593,723 1.094,658245
48,693,154 169,384,181 43,085,259 164,593,723 1.094,658.245
Current Tax Liabilities
1,006,306 869,133
(1,066,883,755) Current year Income Tax Liabilities
1.006.306 869,133
(1,066,883,755)
Tax Liabilities of Prior Periods
Total 47,686,848 168,515,048 43,085,259 164,593,723 27,774,490
Investment in Subsidiaries
4.10
Particulars 2074/75 2074/75 2074)75 2073174 2072173
Investment in Quoted Subsidiaries - - - Investment in Unquoted Subsidiaries - 157,142.000 78,570,981 - Total Investment - - 157,142,000 78,570,981 - Less: Impairment Allowances - - - - Net Carrying Amount - . 157,142,000 78,5709981 - Fair value of investment in subsidiary is taken at cost
4.10.1: Investment in Quoted Subsidiaries
2074175 2073/74
Cost Fair Value Cost Fair Value
Total - - -
4.10.2: Investment in Unquoted Subsidiaries
Sunrise Capital Limited
785710 Shares ofRs. 100 Each
1571419.8 Shares of Rs. 100 Each
2074/75 2073/74 2072173
Cost Fair Value Cost Fair Value Cost Fair N aIue
78,570,981 78,570,981
157,142,000 157,14200
Total 157. 142.000 157,142,000 78,570,991 78,570,981 - -
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4.10.3: Information relating to Subsidiaries of the Bank
Sunrise Capital Limited
Total
4.10.4: Non Controlling Interest of the Subsidiaries
Group Percentage of Ownership held by Bank 78.57% -
MDC Ltd Equity Interest held by NCI (%) 2 1.43% Profit (Loss) allocated during the year 3,999,282 Accumulated Balances of NCI as on Asar End 54,690,343 Dividend Paid to NCI
2073/74 NIDC Ltd
Equity Interest held by NO (%) 21.43% Profit (Loss) allocated during the year 4,515,361 Accumulated Balances of NCI anon Asar End 29.262,061 Dividend Paid to NCI
Investment in Associates
Bank Percentage of Ownership held by Bank
2074/75 2073/74
7857% 78.57%
78.57% 78.57%
4,11
Group Bank Particulars 2074/75 2073/74 2074/75 2073/74 2072/73 Investment in Quoted Associates Investment in Unquoted Associates Total Investment - - - - - Less: lmpainncnt Allowances - Net Carrying Amount - - -
I
4.1 1.1: Investment in Quoted Associates Group Bunk
2074/75 2073174 2074175 2073174
Cost Fair Value Cost Fair \alur Cost Fair Vular Cost Fair uIno
4.11.2: Investment in Unquoted Associates Group Rook
207405 2073/74 2074175 2073174
Cost Fair Value Cost Fair Value Cost Fair Value Cost Fair Value
Not Applicable
Total
4.II.3 Information relating to Associates of the Bank
Group Back
Percentage of Oorterolup hold b' Bank PCrcoutag of Onotoh:p hold bs Bank
2074175 207174 2074175 2073174
Not Appltcabk
4.11.4: Equity Value of Associates (stoop
Percentage of Osvncrh:p held ho Book
Current Year Pres sous Year
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Investment Properties
4.12
Group Bank Particulars 2074175 2073/74 2074)75 2073174 2072/73
Investment Properties measured at Fair Value
Balance as on Shrwawan 01 161,448,497 103,907,648 161,448,497 103.907.648 104,765,597
Addition/(Disposal) during the year (42,194,449) 57,540.849 (42,194,449) 57,540,849 (857,949) Net Changes in fair value during the year . - - - -
Adjuslment!Fransfer - - -
Net Amount 119,254,047 161,448,497 119,254,047 161,448,497 103,907,648
Investment Properties measured at Coat
Balance asonShrwawanol - - - -
Addition/(Disposal) during the year - - - - -
Net Changes in fair value during the year
AdjuslmentiTransfer - - - - -
Net Amount - -
Total 119,254,047 161,448,497 119,254,047 161.448,497 103,907,648
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Goodwill and Intangible Assets 4.14
Particulars Goodwill Purchased Deve1nned (Ith.. T,,h1 A..,.. ..rnl
As on Shrawan 01 2073 - 47,343,763 - - 47,343,763 Addition during the year - 23,485,422 - - 23,485,422
Acquisition - - - -
Capitalization - 23,485,422 - - 23,485,422 Disposal during the year - - - -
Adpjstment/ Revaluation - - - -
Balance as on Asar end 2074 - 70,829,184 - - 70,829,184
Addition during the Year - -
Acquisition - - - -
Capitalization - 33,618,638 - - 33,618,638 Disposal during the year - (7,820,534) - - (7,820,534) Adjustment/Revaluation - - - -
Balance as on Mar end 2075 96,627,289 - - 96,627,289
Amortisation and Impairment As on Shrawan 01. 2073 - 41,450,933 - - 41,450,933 Amortisation charge for the year - 7,128,569 - 7,128,569 Impairment for the year - - - -
Disposals - - - -
Adjustment - (36,284,288) - - (36,284,288) As on Mar end 2074 12,295,214 - - 12,295,214 Impairment for the year - - - -
Amortisation charge for the year - 16,769,878 - - 16,769,878 Disposals - (9,214,786) - - (9,24,786) Adjustment - - - -
As on Asar end 2075 - 19,850,305 - - 19,850,305 Capital Work in Progress Net Book Value 76,776,984 76,776,984 Mon Mar end 2073 - 5,892,829 - 5,892,829 Mon Mar end 2074 - 58,533,970 - 58,3,970 As on Asa end 2075 - 76.776.o8 -
53 ,A
0 40
1'kISE aP at1h
'b ,
Goodwill and Intangible Assets 4.14
Bank Software
Particulars Goodwill Purchased Developed Other Total Asar end Cost As on Shrawan 012073 - 47,343,763 - - 47,343,763 Addition during the year - 23361,122 - - 23,361,122
Acquisition - - - -
Capitalization - 23,361,122 - - 23,361,122 Disposal during the year - - - -
Adjustment/Revaluation - - - -
Balance as on Mar end 2074 - 70,704,884 - - 70,704,884
Addition during the Year - - - -
Acquisition - - - -
Capitalization - 33,166,638 - - 33,166,638 Disposal during the year - (7,820,534) - - (7,820,534) Adjustment/Revaluation - - - -
Balance as on Mar end 2075 96,050,989 - - 96,050,989
Amortisation and Impairment As on Shrawan 01.2073 - 41,450,933 - - 41,450,933 Amortisation charge for the year - 7,004,269 - - 7,004,269 Impairment for the year - - - -
Disposals - - - -
Adjustment - (36,284,288) - - (36,284,288) As on Mar end 2074 129 170,914 - - 12,170,914 Impairment for the year - - - -
Amortisation charge for the year - 16,679,478 - - 16,679,478 Disposals - (9,214,786) - - (9,214,786) Adjustment - - - -
As on Mar end 2075 - 19,635,605 - - 19,635,605 Capital Work in Progress
1 •' G V4,s BAl
Deferred Tax 4.55
Bank Previous Year
Net Deferred Tax Deferred Tax Deferred Tax Assets
Particulars Assets Liabilities /(Liabilities)
Deferred tax on temporary differences on following items Loans and Advances to BFI5 - - -
Loans and Advances to Customers - (49,314,958) (49,314,958) Investment Properties - - -
Investment Securities - - -
Property and Equipment 23,641,006 (3,214,808) 20,426,198 Employees' Defined Benefit Plan 19,264,150 - 19,264,150 Lease Liabilities - - -
Provisions - - -
Other Temporary Differences - - -
Deferred tax on temporary differences 42,905,155 (52,529,766) (9,624,610)
Deferred tax on carry forward of unused tax losses - - -
Deferred lax due to changes in tax rate - - -
Net Deferred Tax Asset (Liabilities) as on year end of 2072/73 (9,624,610) Adjustment to opening 1,140,889 Closing Net Deferred Tax Asset (Liabilities) as on year end of 2072/73 (8,483,721) Deferred Tax (Asset)! Liabilities as on Shrawan 01, 2072 10,296,879 Origination/(Reversal) during the year (19,921,489)
Deferred Tax (expense)/income recognized in profit or loss (19,921,489) Deferred Tax (expense)/income recognized in OCI -
Deferred Tax (expense)/income recognized directly in equity
Deferred Tax 4.55
Bank Current Year
Net Deferred Tax Deferred Tax Deferred Tax Assets
Particulars Assets Liabilities /(Liabilities)
Deferred tax on temporary differences on following items Loans and Advances to BFls - - -
Loans and Advances to Customers - (81,440,256) (81,440,256) Investment Properties - - -
Investment Securities - - -
Property and Equipment - (1,016,055) (1,016,055) Employees' Defined Benefit Plan 51,659,126 - 51,659,126 Lease Liabilities - - -
Provisions - - -
Other Temporary Differences 1,166,456 - 1,166,456 Deferred tax oc tempolaly differences 52,825,582 (82,456,311) (29,630,70) Deferred tax on carry forward of unused tax losses 3,894,392 - 3,894,392 Deferred tax due to changes in tax rate - - -
Net Deferred Tax Asset (Liabilities) as on year end of 2073/74 (25,736,338) Deferred Tax (Asset)/ Liabilities as on Shrawan 0 1, 2073 (26,506,060) Origination/(Reversal) during the year 52,242,398
Deferred Tax (expense)/ineome recognized in profit or loss
62,737,769 Deferred Tax (expense)/income recognized in OCI
(10,495,372)
Deferred Tax (expense)/income recognized directly in equity
A0 1)
Vi?1SE B1' -
, )c , O ff V\ o\
—
Bank Previous Year
Net Deferred Tax Deferred Tax Deferred Tax Assets
Particulars Assets Liabilities /(Liabilities)
Deferred tax on temporary differences on following items - -
Loans and Advances to BFIs - - -
Loans and Advances to Customers - - -
Investment Properties - - -
Investment Securities - - -
Property and Equipment - (26,044, 167) (26,044,167) Employees' Defined Benefit Plan 75,555,602 - 75,555,602 Lease Liabilities - - -
Provisions - - -
Other Temporary Differences 390,233 390,233 Deferred tax on temporary differences 75,945,835 (26,044,167) 49,901,668 Deferred tax on carry forward of unused tax losses 3,245,327 - 3,245,327 Deferred tax due to changes in tax rate - - -
Net Deferred Tax Asset (Liabilities) as on year end of 2074/75 53,146,995 Deferred Tax (Asset)/ Liabilities as on Shrawan 01, 2074 (25,736,338) Origination/(Reversal) during the year 78,883,332
Deferred Tax (expense)/income recognized in profit or loss 140,705,056 Deferred Tax (expense)/income recognized in OCt
(61,821,723)
Deferred Tax (expense)/income recognized directly in equity
(..i(
4 th S
kgsE BP
Other Assets 4.16
The other assets that fall under the classification of financial instruments are carried at amortized costs and those other assets that do not fall within the definition are
carried at cost. These instruments are regularly monitored for impairment.
Group Bank
Particulars 2074/75 2073/74 2074/75 2073/74 2072173
Assets held for Sale - - - - - Other Non-Banking Assets - - - - - Bills Receivable - - - - - Accounts Receivable 96,139,934 52,823,547 94,933,780 47,541,340 79,767,242
Accrued Income - - - - - Prepayments and Deposits 44,030,764 36,077,186 43,510,209 35,613,903 15,074,987
Income Tax Deposit - - - - - Deferred Employee Expenditure - - - - - Other Assets 188,704,626 422.650.102 186,884,310 422.080,661 13,125,708
Total 328,875,325 511,550,835 325,328,298 505,235,904 107,967,937
Due to Banks and Financial Institutions 4.17
Group Bank
Particulars 2074/75 2073/74 2074/75 2073/74 2072173
Money Market Deposits - - - - - Interbank Borrowing - - - - Other Deposits from BFIs 2,126,890,375 3,880,814,202 2,126,890,375 3,880,814.202 1,819,765,220
Settlement and Clearing Accounts - - - - Other Deposits from BEIs - - Total 2,126,890,375 3,880,814,202 2,126,890,375 3.880,814,202 1,819,765.220
Due to Nepal Rastra Bank 4.18
Group Bank
Particulars 2074/75 2073/74 2074/75 2073/74 2072/73
Refinance from NRB 523,732.510 - 523,732,510 - -
Standing Liquidity Facility - - - - -
Lender of Last Resort facility from NRB - - - - -
Securities sold under repurchase agreements - - - - -
Other Payable to NRB 2.834,869 - 2.834,869 - -
Total 526,567,379 - 526,567,379 - -
Derivative Financial Instruments
4.19
Group Bank
Particulars 2074/75 2073/74 2074/75 2073/74 2072/73
Heid for Trading Interest Rate Swap - - - Currency Swap - - - Forward Exchange Contracts - Others - - -
Held for Risk Management Interest Rate Swap - - Currency Swap - Forward Exchange Contracts. 23,324,347 23,324,347 - Others - - -
'total 23,324,347 - 23,324.347 - Deposits from Customers
4.21)
Group Bank Particulars 2074/75 2073/74 2074/75 2073/74 2072/73
Institutional Customers:
Term Deposits. 24,903,251,412 23.254.072,829 25,008,251.412 23,372,191,280 20,256,612,881
('all Deposits 3,578,948.054 2,329,616,726 3,646,860,293 2.329,616,726 4,254,812,381 Current Deposits. 3,175.622,327 1.594,990,792 3,175,622,327 1,594,990,792 1,529,453,739 Others 1.112,269,041 1,044,705,240 1.112.269.041 1,044,705.240 1,020,654,548
lnol\ idual Customers: - - Term Deposits 14,042,160,657 12,120,954,655 14.042,160,657 12,120,954,655 5,280,067,195 Saving Deposits 19.786.710,542 16,382,387,511 19,786,710,542 16.382,387,511 17,163,701.327
Current Deposits 439,721,189 261,904,191 439,721,189 261.904,191 244.300,618
Others 154.532.054 179.409.052 154,532,054 179.409,052 231.692.547
Total 67,193,215,276 57,168,040,996 67,366,127.515 57,286,159,447 49,981,295,235
"J \
/ I
ath m"
"'RISE BPV
4.20.1: Currency wine analysis of deposit from customers Group Bank
Particulars 2074175 2073/74 2074175 2073174 2072/73
Nepalese Rupee 66,044.113,727 55,551,336,362 66,044,113.727 55,551,336,362 48.722,121,085
Indian Rupee - - United States Dollar 1,302,418,263 1,710,287,408 1.302,418,263 1,710.287,408 1,235,974,515
Great Britain Pound 13,000,576 3,136,551 13.000,576 3,136,551 1.069,071
Euro 6.594,949 21,399,127 6.594,949 21,399,127 22.130.564
Japanese Yen Chinese Yuan
Other - - Total 67,366,127,515 57,286,159,447 67,366,127,515 57,286,159,447 49.981,295,235
Borrowings 4.21
Group Bank
Particulars 2074175 2073/74 2074/75 2073/74 2072/73
1)ornesllc Borrowings Nepal Government - - - - Other Institutions. Other Sub Total
Foreign Borrowings Foreign Banks and Financial Institutions
Multilateral Development Banks
Other Institutions Sub Total Total - - -
Provisions 4.22
Group Bank
Particulars 2074/75 2073/74 2074/75 2073/74 2072/73
Provisions Ice Redundancy Provisions for Restructuring - - - - Pending Legal Issues and Tax Litigation Onerous C ontracts - - - Other - Total - - - - -
4.22.1: Movement in Provision Group Bank
Particulars 2074175 2073/74 2074/75 2073/74 2072/73
Balsn,e a: Sk'awar. 01 Provisions made during the year - - - - Provisions used during the year
Provisions reversed during the year Unwind of Discount Balance at Asar end - - -
Other Liabilities 4.23
Non Financial liabilities are recorded and reported at cost based on legal and constructive obligation to the bank. Provisions are recognised when the bank has a present legal or constructive obligation as a result of past events, it is more likely that not that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated.
Group Bank Particulars 2074/75 2073/74 2074/75 2073/74 2072/73
Liabilities for ensloyees defined benefit obligations 168,675,501 113.285.330 167,044,821 112,333,570 93,894,361 Liabilities for tong service leave 77,289,026 59,863,515 77,289,026 59,863,515 52.981,981 Short term employee benefits - - - - Bills payable 23,715,576 17.204.029 23,715,576 17,204,029 19,516,359 Creditors and accruals 16,779,354 20,673,903 - - - Interest pa) able on deposits - Interest Payable on borrowing - - - - Liabilities on defered grant income - - - - - Unpaid Dividend 104,189,435 109.423.455 44,195.398 44.509,037 40,760.303 Liabilities under Finance Lease . - - - - Empicyce bonus payable 197.482.343 173,073,288 195,126,988 170.436,789 174.576.162 Other Liabilities 765.319,446 609,364.818 678,290,660 526,419,509 310.553,717 Total 1,353,450,682 1.102,888.337 1,185,662,469 930,766,449 692,282,883
A.
Sit / f°-'fe It
!'"i'JiI O s
4.23.1: Defined Benefit Obligation Group Bank
The amounts recognised in the statements of financials positions are as follows:
Particulars 2074/75 2073/74 2074/75 2073174 2072173
Present value of unfunded obligations 244.333,847 172.197,085 244,333,847 172.197.085 146,876,342
Present value of funded obligations - -
Total present value of obligations 244,333,847 172,197,085 244,333,847 172,197,085 146.876,342
Fair value of plan assets - - -
Present value of net obligations 244,333,847 172.197.085 244,333,847 172,197,085 146,876,342
Recognised liability for defined benefit obligations
4.23.2: Plan Assets
Plan assets comprise
Group Bank
Particulars 2074/75 2073/74 2074/75 2073/74 2072/73
Equity securities - - -
Government bonds
Bank deposit
Other - - - -
'total
Actual return on plan assets
4.23.3: Movement in the present value of defined benefit obligations
Group Bank
Particulars 2074/75 2073/74 2074/75 2073/74 2072173
Defined benefit obligations at Sawan 1 172.197.085 146,876,342 172.197,085 146,876.342 76.099,513
Actuarial losses 17,820,180 (4,454,163) 17,820,180 (4,454,163) 51.018,768
Benefits paid by the plan (6.672.902) (8,828.910) (6,672,902) (8,828,910) (2,293,963)
Current service costs and interest 60.989.484 38,603.816 60,989.484 38,603.8 16 22.052.024
Defined benefit obligations at Mar end 244,333,847 172,197,085 244,333,847 172,197,085 146,876,342
4.22.4: Movement in the fair value of plan assets
Group Bank
Particulars 2074/75 2073/74 2074/75 2073/74 2072)73
Fair value of plan assets at Sawan I - - - - -
Contributions paid into the plan
Benefits paid during the year - - - -
Actuarial (losses) gains
Expected return on plan assets - - - - -
Fair value of piun assets at Asar end
4.22.5: Amount recognised in profit or loss
Group Bank
Particulars 2074/75 2073/74 2074/75 2073/74 2072/73
Curren, cers ice costs 53,362,141 23,361,393 53,362,141 23,361,393 41,547.044
interest on obligation 13,401,539 11,302,216 13,401.539 11,302.216 5,995,945
Expected return on plan assets - . - -
Total 66,763,680 34,663,609 66,763,680 34,663,609 47.542,989
4.22.6: Amount recognised in other comprehensive income
Group Bank
Particulars 2074/75 2073/74 2074/75 2073/74 2072/73
Acturiai (gainYloss 12.045.984 (513.956) 12.045,984 (513,956) 25.527.803
Total 12,045,984 (513,956) 12,045.984 (513,956) 25.527.803
4.22.7: Actuarial assumptions
Bank
Particulars 2074175 2073/74 2072/73
Discount rate 9% 8% 8%
Expected return on plan asset 0% 0% 0%
Future salary increase 10% 10% 10%
Withdrawal rate 11 0/u 11% 11%
Debt secuiities issued
4.24
Group Bank
2074175 2073/74 2074/75 2073/74 2072/73
Dent secuiitien issued designated as at fair value throu1
Debt secit,ities issued at amortised cost -
Total
RISE BP
*ne4,
,.-.-.-"-
Subordinated Liabilities 4.25
Group Bank
Particulars 2074/75 2073/74 2074175 2073174 2072173
Redeemable preference shares
Irredemabie cumulative preference shares (liabilities
component)
Other Total - - -
Share capital 4.26
Financial instruments issued are classified as equity when there is no contractual obligation to transfer cash, other financial assets or issue available number of'own number of instrumens. Incremental costs directly attributable to the issue of new shares are shown in equity as deduction net of taxes from the proceeds
Dividends on ordinary shares and preference shares classified as equity are recognised in equity in the period in which they are declared
Group Bank
Particulars 2074/75 2073174 2074175 2073/74 2072173
Ordinary shares 8.152,555,851 7,018.104.701 8.152.555,851 7.018.104,701 3,976,046,341
Convertible preference shares (equity component on . - - lt-reoetnable preference shares (equity component or
, petual debt (equity component only) - - - - Total 8.152.555,981 7,018J04,701 8.152,355,851 7,018,104,701 3,976,046.341
426 I Ordinary Shares
Group Bank
Particulars 2074/75 2073/74 2074/75 2073174 2072173
Authorized Capital
50,000,000 Ordinary share of Rn 100 each 5,000000,000
(2072.13) 100,000,000 Ordinary share of Rs 100 each 10.000,000.000 10,000,000,000 10,000.000,000 10,000.000,000
Issued capital
39,760,498 Ordinary share of Its 100 each 3,976.049.741
(2072/73) 70,891.757 Ordinal)' share of Rs 100 each
7.018.104,701 (2073/74) 81,525,558 Ordinary share of Es. I® each
(2074/75) 8,152.555.851 7,018,104,701 8,152,555,851
Subscribed and paid up capital
39,760,464 Crditsary share of Rs tOO each 3.976.046.341
(2072173) 73,i81,O47 Ordinary share ofRs. 100 each
7,018,104,701 (2073/74) 81525,558 Ordinary share of Rs. 100 each (2074/75) 8.152.555,851 7,018,104,701 8,152.555,851
Total 8,152,598,851 7.018.104.701 8.152.555.851 7,018,104.701 3,976.046,341
4.26.2: Ordinary share ownership
Particulars 2074/75
2073/74
Percent Amount Percent Amount
Domestic ownership
5,oal Government
"A" Cias5 licensed institutions
Other licensed inlitutions
Other Isslituliorm
Publin 48.90% 3,986,599,811 48.49% 3,402,770.940
Other SI 10% 4,165,956,040 51.51% 3,615,333.761
Foreig
Tcval 100% 8,152555,85t 100% 7,018,104.701
Reserves 4.27
The reserve include regulatory and free reserve
Group Bank
Particulars 2074/75 2073/74 2074/75 2073174 2072173
Statutory general reserve 1,452.920,248 1.157,525,877 1,452,920.248 1,157,525,877 774,260,314
Exchange equilisation reserve 27.141,769 22,968.448 27.141,769 22,968,448 21,181,584
Corporate social responsibility reserve 20,211,911 11,760,887 20,211,911 11.760.887
Capital redemption reserve - - - - Regulatory reserve 526,481,883 - 526,481,883
Investment adjustment reserve 16.585,000 23,105,225 16.585,000 23,105,225 17,798,572
Capital reserve 7.649,249 7,649,249 - Assets revaluation reserve . - - Fair value reserve 279,707,498 127,024,622 279.707,498 127,024.622
Dividend equalisation reserve - - Actuarial train (8,072,420) 359,769 (8,072,420) 359.769 (25,527,803)
Specsi rserse Other reserve 17,789,989 25,070,580 17,789,989 25,070,980 14,033,894
Total 2,340,415,129 1,375,464,658 2,332,765,879 t,367,StS,408 801,746,561
There is regulatory requirement to set aside 20% of the net profit to the general reserve until the reserve is twice the paid of share capital and thereafter minimum 10%
of the net profit. The reserve is the acuumulation of setting aside of the profits over the period.
There is regalatorv requirement to set aside 25% of the foreign exitange revaluation gain on the translation fo the foreign currency to the reporting currency. The
reserve is the acuumulation of setting aside of the profits over the period
st.. .,_.,... .. .r._ ,,_... ..:.._. ,...:i ;., ,s. c,.,...,.., crk,,,, in p,..;.. V
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Contingent liabilities and commitments 4.28
Contingent liabilities Where the Bank undertake to make a payment on behalf of its customers for guarantees issued, such as for performance bonds or as imecosable
letters of credit as part of the Banks transaction banking business for which an obligation to make a payment has not arisen at the reporting date, those are included to
these financial statement as contingent liabilities
Other contingent liabilites primarily include recocable letters of credit and bonds issued on behalf of customers to customs, for bids or offers
Commitments. Where the Bank has confirmed its intention to provide funds to a customer or on behalf of a customer in the form of loans, overdrafts. future
guarantees, whether cancellable or not, or letters of credit and the Batik has not made payments at the reporting date, those instruments are included in these financial
statment as committments
Group Bank
Particulars 2074/75 2073/74 2074/75 2073/74 2072/73
Contingcn liabilities 24,749,879,404 19,131639,640 24,749,879,404 19,131,639,640 14,216,052,312
Undrawn and undisbursed facilities 12,867,453,357 10,255,318,679 12,867,453,357 10.255,318,679 5,746,474,773
Capital commitment 8,058.829 - 8,058,829 - -
Lease Commitment . - - -
Litigation 12518.295 12.518,295 12.518,295 12518.295 15,377,566
Total 37,637,909,885 29,399.476.614 37,637,909,885 29,399,476,614 19,977,904,651
4.28.1: Contingent Liabilities
Group Bank
Particulars 2074/75 2073/74 2074175 2073/74 2072/73
Acceptance and documentary credit 4,329,410,484 2,910,867,424 4,329,410,484 2,910.867.424 3,187,589,148
Bills for coltection 656,511,726 77,333,142 656,511.726 77.333.142 612,226,357
Forward exchange contracts 3,020.875,000 2,166,150.000 3,020,875,000 2,166,150,000 2,174,597,282
Guarantees 16,743,082,194 13,977,289,074 16.743.082,194 13,977.289.074 8,241,639,525
Underwriting commitment
Other commitments
Total 24,749,879,404 19,131,639,640 24,749,879,404 19,131,639,640 14,216,052,312
4.28.2: Undrawn and undisbursed facilities
Group Batik
Particulars 2074/75 2073/74 207475 2073/74 2072/73
Undisbursed amount of loans - - - -
Undrawn limits of overdrafts 12,867,453.357 10,255,318,679 12,367,453,357 10,255,318,679 5,746,474,773
Undrasvn limits of credit cards
Undrawn lien's of letter of credit
Undrawn limits of guarantee
Tow 12,867,453,357 10,255,318,679 12,867,453,357 10,255,318,679 5,746,474,773
4.28.3: Capital commitments
Capital expenditure approved by relevant authority of the bank but provision has not been made in financial statements
Group Bank
Particulars 2074175 2073174 2074/75 2073/74 2072/73
Capital commitments in relation to Property and liquipinent
Approved and contracted for 8,058,829 8,058,829 - -
Approved but not contracted for .
Sub total 8.058,829 - 8,058,829 - -
Capial commitments in relation to Intangible assets
Approved and contracted for - - - - -
Approved but not contracted for - - - -
Subtotal
Total 8.058.829 - 8,058,829 -
4.28.4 lease commitments
Particulars
Otteratreg lease commitments
Future minimum icasc payments under non
cancellabe
operating lease, where the bank is lessee
Not later than 1 year
Later than I year but not later than S years
Later than 5 years
Sub total
Group Bank
2074115 2073174 2074175 2073/74 2072/73
Finance lease commitments
Future mininum ease payments under son
cancellable
operating lease, where the bank is lessee
Not later than I year
Later than I year but not later than 5 years -
Luter. hue, 5 years
Sub total -
Grand total
4.28.5: ..itigalioIr
Comingent Tax Liabilities 12.518.295 12,518,295 12.518.295 12,518.295 15,377,566 ///
4'.
Sunrise Bank Limited
Notes to Financial Statements
For the year ended 32 Asar 2075
Interest Income
4.29
Group Bank
Particulars FY 2074/75 F\' 2073/74 FY 2074/75 FY 2073/74
Cash and cash equivalent - 33,201 - 33,201 Due from Nepal Rastra Bank - - - -
Placement with bank and financial institutions 92,075,710 30.941,314 73,554,816 30.941,314
Loan and advances to bank and financial institutions - - - -
Loans and advances to customers 7,228,983,242 5,200,800,651 7,228,983,242 5,200,800.651
Investment securities 308,761,792 170,887,432 308,761,792 170.887,432
Loan and advances to staff 36,061,338 25,168.021 36,061.338 25,168,021
Other Interest Income - - - -
Total interest income 7,665,882,082 5,427,830,619 7,647,361,187 5,427,830,619
Interest income is recognized in accrual basis using the rate that closely approximates the EIR because the bank considers that the cost of exact calculation
of effective interest rate (EIR) method exceeds the benefit that would be derived from such compliance
As a part of first convergence exercise to NFRS, the bank has not considered the accrued interest as income for those identifiable parties which got
reversed in subsequent year which amounts to NPR 234,624,050 in FY 2072/73 and NPR 284,714.723 in FY 2073/74.
Interest Expenses 4.30 Group Bank
Particulars F' 2074/75 FY 2073/74 FY 2074/75 FY 2073/74
Due to bank and finar.cial institutions - - - -
Due to Nepal Rastra Bank 4,915,420 - 4,915,420 -
Deposits from customers 4,747,964,440 3,106,141,502 4,766,229,839 3,110,863,617 Borrowing 5,287,854 2,569,111 5,287,854 2,569,111 Debt securities issued - - - -
Subordinated liabilities - - - -
Other (h srges - - - -
Total Interest expense 4,758,167,715 3,108,710,613 4,776,433,114 3,113,432 9728
Fees and Commission Income 4.31 Group Bank
Particulars F' 2074/75 FY 2073/74 FY 2074/75 FY 2073/74
Loan administration fees - - - -
Service fees 229,401.022 224,263,589 229,401,022 224,263,589 Consortium Ifees - -
Commitment fees - - - -
DD/Tf/SwitI fees 15,507.843 9.654.251 15,507,843 9,654,251 Credit card/ATM issuance and renewal fees 86,024,731 90.164,782 86,024,731 90,164,782 Prepayment and swao fees - - - -
Investment banking fees 4,176,724 4,837,082 - -
Asset management fees 106,535 - - -
Brokerage fees - - - -
Remittance fees 12,977,783 7.990,499 12,977,783 7,990,499 Commission on letter of credit 44,786,829 41,138,574 44,786.829 41.138.574 Commission on guarantee contracts issued 159,686,349 124,530,733 159.686,349 124,530,733 Commission on share underwriting/issue 4,434,438 1,835,325 -
Locker rental 5,210.560 5.475,155 5.210.560 5,475,155 Other fees and commision income 68.577.441 15.799.954 66.318.819 14.033,840 Total Fees and Commission Income 630,890,254 525,689,944 619,913,935 517.251,423
Fees and commissions are generally recognized on an accrual basis when the service has been provided or significant act is perfomsed.
Service processing fees on loan is recognized as fees and commission income by the bank and the same in recognized by the bank upfront and is not deferred with the tenure of loan.
. I
0,
Fees and Commission Expense 4.32
GrouD Bank
Particulars Fl 2074/75 Fl 2073/74 Fl 2074/75 Fl 2073/74
ATM management fees 67,730.922 62,945,241 67,730.922 62,945,241
VISA/Master card fees - - - -
Guarantee commission - - - -
Brokerage - - - -
DDITT/Swift fees. - - - -
Remittance fees and commission - - - -
Other fees and commission expense 89.101,602 98.005,813 91.608,476 98.180,966
Total Fees and Commission Expense 156,832,524 160,951,054 159,339,397 161,126,207
Fees and commission expense relates mainly to the transaction and service fees, which are expenses as the services are received.
Net Trading income 4.33
Group Bank
Particulars Fl 2074/75 Fl 2073/74 F's 2074/75 Fl 2073/74 Chang" in tar váTT __ading assets - - - -
Gain/loss on disposal of trading assets (4,213,288) (15,039,447) - -
Interest income on trading assets - - -
Dividend income on trading assets - - -
Gain/loss foreign exchange transation - - - -
Other - - - -
Net trading income (4,213,288) (15,039,447) - -
Gains and tosses arising from changes in fair value of financial instruments held at fair value through profit and losses are included in the statement of
profit cr loss in the period in which they arise. Gains and lossed arising from changes in the fair value of available for sale financia assets are recognised
directly in equity, until the financial assets are derecognised. Dividends on equity instruments are recognised in the statement of profit or loss within other income when the Bank has right to receive payment is
established.
Other Operating Income 4.34
Group Bank
Particulars Fl 2074/75 Fl 2073/74 Fl 2074/75 Fl 2073/74
Foreign exchange revauation gain 16.693,283 7.147.455 16,693,283 7,147.455 Gainiloss on sate of investment securities - 13.435,964 - 13.435,964
Fair value gainiloss on investment properties - - - -
Dividend on equity instruments 13,448,885 1,082,592 12.916.090 1,082,592
GainIioss on sale of property and equipment (2,662,564) 13,779,654 (2.662.564) 456,641
Gain/loss on sale of investment property - - - -
Operating lease income 3,412,434 3,329,009 3,412,434 3,329,009
Gain/loss on sale of gold and silver - - - -
Other Operating Income 197328,697 122.992,399 197.328.697 122.992399
Total 228,220,735 161,767,072 227,687,940 148,444,059
All other operating income not specifically provided under the income heads above is booked and presented under this head. This include foreign exchange revaluation gain, gain/loss on sale of available for sale securities, dividend on available for sale securities, gain/loss on sale
of property and equipment, gain/loss on sale of investment properties, operating lease income, gain/loss on sale of gold and silver, finance income of
finance lease etc.
Impairment charge/(reversal) for loan and other losses 4.35
Group Bank
Particulars FY 2074/75 Fl 2073/74 Fl 2074/75 Fl 2073/74
Impairment chargc/(reversal) on loan and advances to BFls - - - -
Impairment charge/(revcrsaF' on loan and advances to customers 50,707,963 74.338,808 50.707,963 74,338.808
Impairmert charge/(reversal) on financial Investment (2,115,220) 575,715 (2.115,220) 575,715
Impairment charge/(reversal) on placement with BFIs - - - -
Impairment charge/(reversal) on property and equipment - - - -
Impairment charge/(reversal) on goodwill and intangible assets - - - -
Impairment charge/(reversal) on investment properties - - - -
Total 48,592,743 74,914,523 48,592,743 74,914.523
Loans and advances are assessed individually and collectively as per incured loss model which is then compared with the loss provision prescribed by
NRB directivr no. 2.Higher of the loss as per incurred loss model and NRB directive is considered for impairment. Loans and advances above 40 million are considered for incurred loss model impairment which approximately come at 35% of total portfolio.
ply
Personnel Expenses 4.36
Group Bank Particulars FY 2074/75 FY 2073/74 FY 2074/75 FY 2073/74
Salary 319,432,693 181,539,256 307,869,427 173,802,965 Allowances 255,670,480 204,103,040 255,670,480 204,103,040 Gratuity Expense 46,186,750 41,081,761 46,186,750 41,081,761 Provident Fund 24,946,072 17,223,215 24,946,072 17,223,215 Uniform 2,125,009 7,761,400 1,987,009 7,661,400 Training & development expense 16,218,107 12,504,528 16,218,107 12,504,528 Leave encashment 26,572,207 13,782,448 26,572,207 13,782,448 Medical - - - - Insurance 7.554,691 31,308,270 7,554,691 31,308,270 Employees incentive - - - - Cash-settled share-based payments - - - Pension expense - - - - Finance expense under NFRS 26,359,865 22,834,267 26,359,865 22,834,267 Other expenses related to staff - - - - Subtotal 725,065,875 532,138,185 713,364,609 524,301,894 Employees Bonus 197,482,343 167.233,792 195,126,988 164,597,293 Grand total 922,548,218 699,371,977 908,491,597 688,899,187
Short term employee benefits are measured on an undiscounted basis and are expenses as the related service is provided. The contribution payable by the employer to a defined contribution plan in proportion to the services rendered to Bank by the employees and is recorded as an expense under 'Personnel expense' as and when they become due. Unpaid contribution are recorded as a liability under 'Other Liabilities'.
Other Operating Expense 4.37
Group Bank Particulars FY 2074/75 FY 2073/74 FY 2074/75 FY 2073/74
Directors' fee 1,942,000 2,004,000 1,942,000 2,004,000 Directors' expense 1,095,680 1,007,626 1,095,680 1,007,626 Auditors' remuneration 1,285,940 1,276,900 1,130,000 1,130,000 Other audit related expense 324,162 800,000 324,162 800,000 Professional and legal expense 12,551,385 8,374,562 12,097,325 8,052,033 Office administration expense 159,281,091 68,476,519 158,014,041 68,022,280 Operating lease expense 87,935,180 73,584,632 86,161,430 71,934,632 Operating expense of investment properties - - - - Corporate social responsibility expense 6,318,694 1,396,409 6,318,694 1,396,409 Onerous lease provisions - - - - Other Expenses 179,008,668 161,958,899 175,158,328 158,246,762 Total 449,742,801 318,879,347 442,241,660 312,593,742
Operating lease expense has been recongnised on accrual basis. In case of straight line basis of accouting additional NPR 10,323,943 has to be charged.
I- •1
ISE 153'
Depreciation and Amortisation 4.38
Group Bank Particulars FY 2074/75 FY 2073/74 FY 2074/75 FY 2073/74 Depreciation on property and equipment 62,427,544 48,866,519 60,949,868 47,529,783 Depreciation on investment property - - - -
Amortisation of intangible assets 51,465,125 - 51,465,125 -
Total 113,892,669 48,866,519 112,414,993 47,529,783
Depreciation is calculated by using the written down value method on cost or valuation of the Property & Equipment other than freehold land and leasehold properties. Depreciation on leasehold properties is calculated by using the straight line method on cost or valuation of the property. Intagible asset contains software which has been amortised over 5 years
Non Operating Income 4.39
Group Bank
FY 2074/75 FY 2073/74 FY 2074/75 FY 2073/74 Recovery of loan written off 22,400,570 - 22,400,570 - Other income 45,801,779 31,719,267 45,801,779 13,917,746 Total 68,202,348 31,719,267 68,202,348 13,917,746
Non Operating Expenses 4.40
Group Bank Particulars FY 2074/75 FY 2073/74 FY 2074/75 FY 2073/74 Loan written off 163,834,555 85,025,124 163,834,555 85,025,124 Redundancy provision .. - - -
Expense of restructuring - - - -
Other expense. 547,474 897,152 547,474 897,152 Total 164,382,029 85,922,276 164,382,029 85,922,276
Income Tax Expenses 4.41
Group Bank Particulars FY 2074175 FY 2073/74 FY 2074/75 FY 2073/74 Current tax expense 621,264,344 454,034,370 615,003,079 447,435,702 Current year 619,651,855 452,822,459 613,390,590 446,223,791 Adjustments for prior years 1,612,489 1,211,911 1,612,489 1,211,911 Deferred tax expense (142,075,707) 58,933,512 (140.705,055) 62,737,769 Origination and reversal of temporary differences (142,075,707) 58,933,512 (140,705,055) 62,737,769 Changes in tax rate - - -
Recognition of previously unrecognised tax losses - - -
Total income tax expense 479,188,636 512,967,882 474,298,024 510,173,471
Income Tax expense is recognized in the statement of Profit or Loss, except to the extent it relates to items recognized directly in equity or other comprehensive income in which case it is recognized in equity or in other comprehensive income.
4.41.1: Reconciliation of tax expense and accounting profit Group Bank FY 2074/75 FY 2073/74 FY 2074/75 FY 2073/74
Profit before tax 1,974,823,432 1,634,350,946 1,951,269,877 1,623,025,401 Tax amount at tax rate of 30% 592,447,030 490,305,284 585,380,963 486,907,620 Add: Tax effect of expenses that are not deductible for tax purpo 79,760,973 88,720,848 79,388,097 70,213,035 Less: Tax effect on exempt income (3,874,827) (324,778) (3,874,827) (324,778) Add/less: Tax effect on other items (47,869,790) (127,638,548) (47,503,644) (112,331,739)
Total income tax expense 620,463,385 451,062,807 613,390,589 444,464,138 Effective tax rate 31.42% 27.60% 31.44% 27.38%
I U14%,
Sunrise Bank Limited Statement of Distributable Profit or Loss For the year ended 32 Asar 2075 (Asper NRB Regulation)
Bank
Restated Particulars 32 Ashadh 2075 31 Ashadh 2074 I Net profit or (loss) as per statement of profit or loss 1,476,971,853 1,112,851,929 Appropriations. a. General reserve (295,394,371) (235,217,747) b. Foreign exchange fluctuation fund (4,1,321) (1,786,864) c. Capital redemption reserve d. Corporate social responsibility fund (14,769,719) (11,760.887) e. Employees' training fund f. Other - -
Profit or (loss) before regulatory adjustment 1,162,634443 864,086,431 Regulatory adjustment; a. Interest -eceivable (-)/previou.s accrued interest received (+) (346,008,422) - 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 (-)/reversal (+) (119,254,047) - e. Deferred tax assets recognised (-)/ reversal (+) (53,146,995) I. Goodwill recognised (-)/ impairment of Goodwill (+) g. Bargain purchase gain recognised (-)/resersal ('-) h. Acturial loss recognised (-)/reversal (8,072,420) - i. Other (+1-) Distributable profit or (loss) 636,152,559 864,086,431
re 0
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