APPROPRIATION OF PROFIT:

In document Himalayan Bank Limited Internship Report (Page 140-157)

SECTION VIII: Conclusion and Recommendation

APPROPRIATION OF PROFIT:

Accumulated Profit/(Loss) b/d -3,475

-38% -4,808 -27% -6,096 5% -5,802

Profit after tax for the year -1,093

-43% -1,565 1

17% 267 -573

% -1,262

Insurance Fund -20 -20 -20 -20

Dividend Payment/Adjustment of Past Years -220 297 47 -50

Accumulated Profit/loss c/d -4,808

-27% -6,096 5% -5,802 -23% -7,134

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Appendix 5: Balance sheet of NEA

PARTICULARS 2004/05 VAR 2005/06 VAR 2006/07 VAR 2007/08

Amounts in million rupees ASSETS

Property Land and Equipment 52,167 -1% 51,743 0% 51,782 1% 52,294

Capital Work-in-Progress 16,060 37% 21,992 33% 29,145 23% 35,931

NET FIXED ASSETS 68,227 8% 73,735 10% 80,927 9% 88,225

Long Term Investments 777 6% 820 8% 882 82% 1,602

TOTAL NET FIXED ASSETS 69,004 8% 74,555 10% 81,809 10% 89,827

Stock of finished goods 1,373 -1% 1,355 11% 1,498 1% 1,518

TOTAL STOCKS 1,373 -1% 1,355 11% 1,498 1% 1,518

Trade Debtors 3,698 11% 4,088 26% 5,151 32% 6,777

Cash on hand & bank 1,323 -5% 1,259 15% 1,448 -43% 821

Deposits/ Advances Payment 2,099 2,294 -3% 2,226 2% 2,275

TOTAL QUICK ASSETS 7,119 7% 7,641 15% 8,825 12% 9,873

TOTAL CURRENT ASSETS 8,492 6% 8,995 15% 10,323 10% 11,391

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TOTAL ASSETS 77,496 8% 83,550 10% 92,132 10% 1,01,218 L I A B I L I T I E S

Paid up Capital 20,162 15% 23,113 14% 26,382 8% 28,415

Accumulated profits/ Reserves 4,294 -29% 5,545 13% 4,803 -27% 6,115

TOTAL OWN FUNDS 15,868 11% 17,568 23% 21,579 3% 22,300

Deferred expenses 376 -4% 360 -135% 124 321% 275

TOTAL FICTITIOUS ASSETS 376 -4% 360 -135% 124 321% 275

NET WORTH 15,492 11% 17,208 26% 21,704 1% 22,025

Long/Medium Term Bank Loan 44,538 4% 46,488 2% 47,616 11% 52,762

TOTAL LONG/MED TERM DEBTS 44,538 4% 46,488 2% 47,616 11% 52,762

Trade Creditors 16,769 14% 19,144 16% 22,119 16% 25,618

Other current liabilities/Provisions 698 2% 710 -2% 693 17% 813

TOTAL CURRENT LIABILITIES 17,466 14% 19,854 15% 22,812 16% 26,431

TOTAL EXTERNAL LIABILITIES 62,004 7% 66,342 6% 70,428 12% 79,193

TOTAL LIABILITIES 77,496 8% 83,550 10% 92,132 10% 1,01,218

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Appendix 6: Cash Flow Statement A Cash flow from Operating Activities: 1,599 3,492 1,607

Operating Profit/income 954 1,202 962

Depreciation and Amortisation 1,922 1,899 1,990

Cash flow before change in working capital 2,872 3,565 2,533

Changes in working capital: 1,820 1,819 1,923

Current Assets:

Total Stocks 18 -144 -20

Advance Tax/VAT/other duties 0 0 0

Trade Debtors -390 -1,063 -1,625

Deposits/ Advances Payment -195 68 -50

L/C & B/Gua Cash Margin 0 0 0

Miscellaneous current assets 0 0 0

Changes in Current Assets: -568 -1,139 -1,695

Current Liabilities:

Trade Creditors 2,376 2,975 3,499

Other current liabilities/Provisions 12 -17 120

Changes in Current Liabilities: 2,388 2,958 3,619 Net Operating Cash flows before interest 4,692 5,384 4,456

Interest Expenses -3,094 -1,892 -2,849

B Cash flow from investing activities: -6,728 -8,094 -9,283

Purchase/sale of fixed assets -7,325 -9,049 -9,218

Non-Operating income (other income) 640 1,017 655 C Cash flow from financing activities: 5,199 4,445 7,129

Bank Loan (short term) 0 0 0

Loan from shareholders/directors/third parties 0 0 0

Long/Medium Term Bank Loan 1,950 1,128 5,146

Increase (decrease) in cash 70 -157 -547

Opening cash balance 1,323 1,259 3,363

Closing cash balance as on F.Y. End 1,392 1,102 2,816

Appendix 7: Term of License

(1) The study/survey license: Max 5 Years (2) The hydropower generation license:

(a) The project supplying the internal demand:

35 Years (b) The export-oriented hydropower

project:

35 Years (c) 60% utilized by national

industrial enterprise on its own

30 Years

(d) Storage projects Extended for a max of 5 Years (3) The Electricity Transmission and

Distribution

National Transmission Line or Grid. 25 Years Electricity Distribution License 25 Years

Appendix 8: Demand of Energy

Particulars 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Peak Demand

(MW) 326.4 351.9 391 426 470.3 515.2 557.5 603.2 648.3 721.7

Available Energy

(GWh) 1475 1701 1868 2066 2261 2380 2642 2780 3051 3180

1. Hydro 1046 1233 1113 1113 1478 1345 1522 1568 1747 1798

2. Thermal 118.6 66.7 27.1 17.01 4.4 9.92 13.66 16.1 13.31 9.17

3. Purchase (Total) 309.6 401.5 727.9 936.3 778.6 1025 1106 1196 1291 1372 India 232.3 232.2 226.5 238.2 149.8 186.6 241.3 266.2 328.8 412.4

Nepal 77.28 169.3 501.3 698.0 628.8 838.8 864.7 930 962.2 960.4

Appendix 9: Number of Consumers of Electricity

Particulars 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Domestic

5,93,468 6,43,314 7,13,307 8,48,54 0

6,22,358 6,73,974 7,45,987 8,84,53 0

6,22,363 6,73,979 7,45,992 8,84,53

5 9,70,611 10,53,93

Appendix 10: Existing Projects in Nepal

Appendix 11: Existing and Private sector

Appendix 12: Other Projects in Nepal

Project Name Capacit

Appendix 13: Hydropower Projects

Appendix 14: Services provided by Himalayan Bank Limited

Deposit Services

Premium Savings Account (PSA)

PSA is a privileged Savings Account with a host of convenient features and banking channels to transact through. PSA Customers enjoy a separate privileged counter and an interest rate calculated on daily balance. PSA is first Premium Deposit Product in the Banking sector of Nepal.

Fixed Deposit

Fixed Deposits can be made for a period ranging from 3 Months to One Year or over. The interest rate is tied up to the tenure of the deposit. Customers can borrow from the Bank against their Fixed Deposit Certificates.

Savings Deposit

Savings Deposit Account can be opened in any of HBL’s branch offices. The minimum deposit to be maintained by the Customer varies according to the branch.

Customers are provided with free personal accidental death insurance. Customers opening this account get a free cheque Book with the ABBS facility.

Current Account

Mainly intended for business/corporate houses, this account can be opened and operated from any HBL’s branches.

Call Deposit

The Bank offers short-term term deposit in the form of Call Deposit. This is an interest bearing Current Account or in other words Term Deposit with a tenure ranging from 7 days to 3 months.

Bishesh Savings Account

'Bishesh Savings Account' is a deposit product targeted to special section of society which includes minors, senior citizens completing the age of 50 years, physically challenged and illiterate individuals.

Recurring Savings Account

'Recurring Savings Account' is a 3 years fixed tenure savings account targeted to individuals who would like to save funds in installments for future use.

Jumbo Term Deposit

'Jumbo Term Deposit' is a fixed deposit targeted to individuals willing to deposit specified amount for specified period of time for a higher return.

Loan Products Corporate Loans

Funded Project / Consortium Loan:

Bank extends both Fixed Term Loan and Working Capital Loan. Loans are

provided for the establishment, capacity addition, up-gradation of existing facilitates as well as acquisition of existing facilities. The loan is extended to manufacturing as well as service sector. If the project is big, Himalayan Bank helps financing needs of the project through consortium lending as the lead Bank and/or Co-lead Bank.

Non Revolving Cash Credit:

Bank extends Non Revolving Cash Credit to finance import of capital items being imported as supplementary equipment of the existing plant and machinery.

Working Capital Financing:

The bank extends Working Capital Loans under various headings to finance the working capital requirements.

Overdraft Facility:

Overdraft Facility, a recurring (revolving) credit facility, is offered to customers for meeting fluctuating working capital needs for funding current assets, overheads and administrative expenses.

Demand Loan

a) Revolving Demand Loan (RDL):

This form of recurring working capital loan is extended to finance continuous working capital requirement of companies.

b) Short Term Demand Loan (STDL):

This is another form of working capital loan extended to finance seasonal and occasional working capital requirement of companies.

Revolving Cash Credit

Revolving Cash Credit is extended to finance working capital requirements particularly to finance import of raw materials (including custom duties) from India.

Similarly the Bank extends Revolving Cash Credit to finance purchase of agriculture produce from local market as well as India.

Import Credit for Telex Transfer and Demand Draft Payment

Bank extends Import Credit to finance import of goods from third countries other than India where payment is made through Telex Transfer or Demand Draft.

Trust Receipt Loan

The Bank extends Trust Receipt Loans for financing raw materials and trading merchandise while retiring documents of the Import Letters of Credit.

Export Credit Facilities:

The Bank extends Export Credit Facilities against export letters of Credit. Pre Export Loan, Post Shipment Loan and Back to Back L/C are some of the facilities that can be extended.

Pledge Loan:

Against security of movable non-perishable stock merchandise, the bank grants Demand Loan / Cash Credit.

Clean Bills purchased and discounted:

The Bank extends these facilities against the Bills/Drafts/Cheque (Negotiable Instruments). The Bank purchases cheques issued by individuals, financial institutions and credit the customer’s account immediately.

Documentary Bills Purchased and Discounted:

The bank extends loan facilities against the Documentary Bills on recourse basis.

Non Funded Facilities

Bank Guarantee:

The Bank issues various types of Bank Guarantee Facilities like Performance Bond Guarantee, Bid Bond Guarantee, Bonded Ware House Guarantee, Financial Guarantee, Deferred Payment Guarantee, Counter Guarantee and Advance Payment Guarantee.

Letters of Credit:

The Bank establishes Import Letters of Credit, sight as well as usance.

Retail/Consumer Loans Hire Purchase Loan

The Bank extends Hire Purchase Loan for purchase of new vehicles, (including body making in case of commercial vehicles) to individuals as well as companies. The bank also finances equipment such as medical equipment,

construction equipment, manufacturing machinery equipments under Hire Purchase Financing.

Housing Loan

Housing Loan is available to purchase readymade / under construction building (including land cost), construct a building on an already owned land, for purchase of adjacent land or extension of existing building.

Subidha Loan

This is a customized loan facility offered to Customers to meet various social needs such as ceremonial expenses, education expenses, minor business dealings, home furnishing, etc.

Credit Card Loan

The bank extends credit to individuals through credit cards that could be payable on monthly installment basis (credit card), fixed tenure basis (capital asset financing), etc.

Loan against Fixed Deposit Receipt

The Bank extends Loan against the Fixed Deposit Receipt issued by the Bank itself or by other Banks (in Nepal). Generally up to 90% of the FDR value can be disbursed as Loan.

Loan against Government Bonds & Bonds of Bank

The Bank extends loans against various Bonds / Stocks/ Promissory notes issued by the Government/ NRB. Under this, up to 90% of the value of such Bonds can be disbursed as Loan. Similarly, the bank can extend loans against bonds issued by commercial banks.

Loan against First Class Bank Guarantees

The Bank extends various credit facilities, funded as well as non-funded, against unconditional guarantees issued by First Class International Banks.

Loan against Shares

The Bank also advances loan against listed shares of Public Ltd. companies.

Small and Medium Enterprises (SME):

As a step further to help establishment, growth and expansion of small and medium sized enterprises, HBL has developed a special loan package meant just to suit small and medium sized enterprises. Business houses coming from industrial, trading and service sector can avail of this facility to meet their short-term and long-term financing needs.

Other Products

International Banking (LC)

To assist its trading Customers, HBL offers Letter of Credit (LC) facilities.

Customers can place their LC application in any of HBL Branches. The fees/charges are one of the lowest amongst the commercial banks of Nepal. The Customers enjoy wide correspondent network of Himalayan Bank in addition to the attractive rates.

Himal Remit

Himal Remit, a premium online customer focused and technology oriented Money Transfer. HBL is a pioneer in the field of retail money transfer business with over a decade long customized service delivery experience in the field. Himal Remit has the largest network covering all major cities, towns and villages of the country and is capable of paying at more than 600 locations across Nepal.

Safe Deposit Locker

Customers availing of this facility enjoy peace of mind in terms of security of their valuable belongings with one of the most attractive rates and ease of location.

Card Services

HBL provides various card services like ATM cards, credit cards of VISA and Master Card (domestic and international), Prepaid cards and Visa debit cards.

SMS Banking

Using SMS Banking, one can check their balance, status of cheque (encashed or not), last three transactions and the Bank’s foreign exchange rate, all at a few clicks of a cell.

Internet Banking

Internet Banking is providing the banking services through the medium of the internet and the computer. All basic banking functions can be easily done through internet banking that too without the hassles of getting into the lines of the banks, travelling through traffic jams and also flexibility of banking hours to name a few advantages.

Appendix 15: Commercial banks in Nepal

Name of the Bank Established in

Nepal Bank Ltd 15 November 1937

Rastra Banijya Bank 23 January 1966

Agriculture Development Bank Ltd Est. 1968

Nabil Bank Ltd 16 July 1984

Standard Chartered Bank Nepal Ltd 24 January 1986

Nepal Investment Bank Ltd 27 February 1986

Himalayan Bank Ltd 18 January 1993

Nepal SBI Bank Ltd 07 July 1993

Nepal Bangladesh Bank Ltd 01 June 1994

Everest Bank Ltd 18 October 1994

Bank of Kathmandu Ltd 03 March 1995

Nepal Credit and Commerce Bank 14 October 1996

Lumbini Bank Ltd 17 July 1998

NIC Bank Ltd 21 July 1998

Machhapuchhre Bank Ltd 03 October 2000

Kumari Bank Ltd 03 April 2001

Laxmi Bank Ltd 03 April 2002

Siddhartha Bank Ltd 24 December 2002

Global Bank Ltd 02 January 2007

Citizens’ International Bank Ltd 20 April 2007

Prime Commercial Bank 24 September 2007

Bank of Asia Nepal Ltd 12 October 2007

Sunrise Bank Ltd 12 October 2007

Development Credit Bank Ltd Upgraded in 2007

NMB Bank Ltd Upgraded in 2007

Appendix 16: Assignment 1

Assignment 1

Goals and objectives of the Interns

Nikhil Agrawal

In document Himalayan Bank Limited Internship Report (Page 140-157)