NOTES ON ACCOUNTS : (2000)

01. In conformity with the Accounting Policy and guidelines (issued by the Royal Monetary Authority of Bhutan), interest earned (but, not collected) amounting to Nu. 25,704,137.80 - previous year: Nu. 19,738,437.39 - have not been recognised as income.

02. Guarantees given and letters of credit issued (on behalf of various clients), outstanding at the yearend, amount to Nu. 177,719,538.07 and Nu. 150,077,681.12 (net of margins) respectively - previous year: Nu. 112,465,852.62 and Nu. 13,497,378.21 (net) respectively.

03. Depreciation on assets acquired (through capital grants) has been charged-off to revenue, instead of adjusting the same against capital reserve.

04. Confirmations in respect of balances appearing under loans, advances, & other receivables are not available.

05. Excess of total amount of provisions held (Nu. 64,404,551.64) over the required amount (Nu.55,406,620.00) has been written back during the year.

06. Provision for taxation includes :
      tax on current year's profit              - 45,033,153.00
      assessed dues for earlier years     -   2,156,802.88
      total                                                    47,189,955.88

07. Capital works-in-progress represent the expenditure incurred in connection with preparation of model and drawing & designing of the proposed office building.

08. Classification of loans, like secured / partly secured / unsecured, based on security coverage was not possible due to incomplete information/documentations.

09. Remuneration and expenditures paid/reimbursed to the Managing Director was as follows:
      salaries & allowances                     553,200.00
      medical                                               15,200.00
      travel (local)                                         8,500.00
      training 248,000.00
      total                                                  824,900.00

10. Bank promotion expenses, in connection with formation of the Bank, are fully amortised.

11. Other assets (advances, claims, pre-payments, deferrals, etc.) include an unadjusted balance in debitsin-suspense account, amounting to Nu. 7,598,225.92. Similarly, other current liabilities include an unadjusted balance, of Nu. 20,348,412.09, in credits-in-suspense account.

12. Net income from interest on time deposits with other banks has been taken into account, without recognising the corresponding amounts of tax deduction at source.

13. Previous year's figures have been re-arranged/re-grouped, wherever necessary.