excellent service with a smile provide financial …...excellent service with a smile provide...

រួម��ើម�ីសហគមន៍រ�កច��ន

Excellent service with a smile

Provide financial services to the needs of customers

These are all our duties

My Duties

Annual Report រ�យ�រណ៍��ំ��ំ2012

Annaul Report 201201

LY HOUR Microfinance Institution Plc received a license from the National Bank of Cambodia in the financial service operations

LY HOUR Microfinance Institution Plc received a license from the National Bank of Cambodia in the financial service operations

Key Figure

I - Corporate Information

1-History of LY HOUR Microfinance Institution Plc

2-Vision and Mission

3-Chairman's Message

4-Cambodia Economic Review

II - Business Review

1-Board of Directors

2-Management Profile

3-Organizational Chart of Ly Hour

4-Operational Area

5-Service & Products

6-Risk Management

III - Financial Highlight

1-Financial Statements 2012

IV - General Information

1-Events of the Year

2-Address and Contact Detail

03

05

05

07

09

12

13

15

16

17

19

21

53

54

Content

Number of borrowers

Operating provinces

Operating districts

Operating villages

% Of woman borrowers

Total staff

Total assets

Loan portfolio

Equity

Solvency ratio

Net financial income

Borrowers per credit officer

Average loan portfolio per credit officer

64

01

09

53

45%

36

KHR 19,221,364 Thousand



402.58%

KHR 160,176 Thousand

3

KHR 172,590 Thousand

Key Figure

Vision

Be a leading microfinance institution in providing financial services in Cambodia.

Mission

To provide an opportunity to Cambodian people to start up and expand their

businesses to improve the standard of living through obtaining the appropriate

microfinance services.

History of Ly Hour Microfinance Institution Plc.

Ly Hour Microfinance Institution is a licensed microfinance institution from the National Bank of

Cambodia to provide financial services. The institution is set up to assist the overall people who

could not get access to financial resources to support and improve their business.

Ly Hour Microfinance Institution Plc. established in late 2012 and received the MFI license

number MF37 from the National Bank of Cambodia on the 2nd October 2012. It is recognized as

legal and qualified microfinance institution to offer credit facilities to their customers. The busi-

ness put into operation and inaugurated officially on the 9th October 2012 presided by Lok

Chumteav OUK MALY, Deputy Governor, the representative of H.E CHEA CHANTO, Governor of

the National Bank of Cambodia.

In the near future, the institution will expand their business operations to other potential provinces

in order to ease the customers as well as respond to their needs.

Annual Report 201205 Annual Report 2012 06

Ly Hour Group is the parent company with number of its subsidiary companies. Ly Hour Money

Exchange established in 1986, where was operated in a small shop and provided only money

exchange service as a family business. With a significant growth, Ly Hour Group has some

subsidiary companies such as Ly Hour Exchange & Jewelry Co., Ltd.; I.K V.M Distribution Co.,

Ltd.; Ly Hour Development Co., Ltd.; Borey Vimean Phnom Penh and lately Ly Hour Microfinance

Institution Plc. have been established in October 2012.

Ly Hour Microfinance Institution Plc. has publicly served its customers with their competitive

financial products and services immediately after obtaining license from the National Bank of

Cambodia on the 2nd October, 2012. This institution is ranked as the 4th among the largest insti-

tutions in term of registered capital of up to USD5 millions (Five Millions US Dollars)".

The Institution’s Board of Directors also adopted the strategic planning for its first phase aiming

to be the top 10 microfinance institutions among the nearly 40 MFIs in the industry by the year

end, 2013. To respond to this, 4 prioritized plans are also introduced and implemented as follows:

Remarks of the Chairman

Oknha Ly Hour

Chairman of the Board of Directors

Oknha Ly HourChairman of the Board of Directors

1. Building a strong and capable management team who has long time management and experi-

ence in microfinance/banking industry to ensure good governance and sustainable operations in

a long term run.

2.Expanding branch network/operations in 7 capital city/provinces in a short time period for

instance Phnom Penh, Battambang, Kampong Cham, Prey Veng, Kandal, Kampong Speu and

Takeo.

3.Growing quality lending portfolio carefully up to USD15 millions (Fifteen Millions US Dollars) by

the end of 2013.

4. Providing the best customer service through knowledgeable and professional staff with high

ethical and professional manner.

In order to cope with the earlier mention strategic plans and expected objectives, the institution

will recruit 100 staff approximately by the first semester of the year 2013. This is a part that the

institution has contributed to the overall development of the country by offering a long term

professional career with a good pay to hundreds of our people.

Finally, I would like to express my deepest and profound thanks to the National Bank of Cambodia

in particular and other relevant stakeholders who have always given us a strong support and

motivation. At the same time, I also would like to express my sincere thanks to all managements

and staff of Ly Hour microfinance institution who have been working very hard without thinking of

tiredness and have always committed to perform their roles with high integrity, profession, and

accountability.


Several years, Cambodia’s economy has experienced strong growth, despite the world economy

not yet recovered. The following is a summary from a speech of the Prime Minister of the King-

dom of Cambodia at the 2013 Cambodia Outlook Conference.

“… Between 2008–2012, Cambodia achieved steady growth at a rate of 5.6% per year. If exclud-

ing the 2009 growth, which was the year of the economic crisis, the growth during the same

period would stand at 6.8% per annum. Growth for 2012 has recently been revised upward from

7% to around 7.7% of GDP.

Growing public and private investment; rebound in industry especially garment exports; contin-

ued robust growth in the service sector mainly in tourism and real estate activities combined with

strong growth in the financial sector; and good performances in the industry and agriculture sec-

tors predominantly rice production and exports have supported this 2012’s performance.

The future outlook for Cambodia is positive, with projected annual growth of more than 7% over

the medium term. In addition, GDP per capita increased from USD 760 in 2008 to nearly USD

1,000 in 2012, with a projection of USD 1,080 in 2013. As a result, the poverty rate dropped to

20% in 2012, and to an estimated 19% in 2013.

Inflation has been constrained. In particular, the 19.7% inflation in 2008 caused by the soaring oil

and food price crisis dropped to 1% in 2009, followed by a slight increase to 2.5% in 2012. Infla-

tion has been kept under control to ensure promising conditions for economic activities and the

stability of people’s livelihoods. Inflation is projected to be suppressed at 4% in 2013.

The exchange rate, especially against the US dollar, has been generally stable during the last few

years, with a slight appreciation of the Riel. In particular, the USD/Riel exchange rate was 4,065

in 2008 and largely remained stable at 4,050 in 2012. Within the Cambodian context, apart from

helping strengthening macro-economic stability, this stable exchange rate also helps to balance

the interests of both USD and Riel holders and increase public confidence in the Riel. Cambodia’s

international reserve has gradually increased, reaching USD 3.2 billion which is equivalent to five

months of imports.

The trade deficit has been significantly reduced, declining from 15.3% of GDP in 2008 to 9.1% in

2012, enabling Cambodia to maintain a reasonable balance of trade. Increased production

capacity for domestic supply and exports, along with enhanced export capacity and competitive-

ness have contributed to the decline of the trade deficit.

Despite the impact of the global financial crisis and several natural disasters, state revenue rose

by an average of 13.6% per annum between 2008–2012, of which tax, customs and excise and

non-tax revenues increased by 15.3%, 11.8% and 11.6% respectively.

Cambodia Economic Review


Public expenditure policy and administration have also been improved and strengthened, result-

ing in better planning of expenditure requirements and better linkages to policy priorities as well

as more effective and efficient use of state budget. The public expenditure policy gives priority to

education, health, agriculture and rural development sectors as well as to the improvement and

expansion of physical infrastructure such as roads, bridges, ports, electricity, clean water,

schools, hospitals and irrigation systems. In particular, public expenditure increased by 17% per

annum, of which current expenditure and capital expenditure increased by 17.6% and 16.8%

respectively.

Public investment financed by state revenue increased from 711 billion riel in 2008 to 1,327 billion

riel in 2012, with much focus directed to physical infrastructure for underpinning growth and social

development and protection of national sovereignty and integrity, while financing by external

sources increased from 1,926 billion riel in 2008 to 2,860 billion riel in 2012.

Public investment on physical infrastructure totalled 9,852 billion riel between 2008–2012, of

which transport, irrigation and electricity absorbed 6,821 billion riel, 2,251 billion riel and 780

billion riel respectively. Between 2008–2012, public investment on transport increased from 850

to 1,851billion riel; irrigation investment increased from 201 to 650 billion riel, and electricity

investment increased from 128 to 327 billion riel.

From 1993 to 2012, the condition of government debt significantly improved. In particular, debt to

GDP ratio was 73%, debt to export ratio was 643%, while debt to state revenue was 1,766%.

However, in 2012, these ratios dropped significantly. Debt to GDP decreased to 31%, debt to

export ratio decreased to 72%, and debt to state revenue dropped to 227%.

These few years, Cambodia’s strong economic growth has somewhat cushioned our economy

from most of the impact. Throughout the crisis, Cambodian government has maintained a prudent

and flexible macroeconomic policy while strengthening financial safety nets.”

Source: Prime Minister’s speech at the 2013 Cambodia Outlook Conference

Director of Board

Oknha Ly HourChairman, Board of Directors

Oknha Ly SophearkMember, Board of Director

Mrs. Liao XiMember, Board of Director

Mr. Tsai Ching ChengMember, Board of Director


Mr. Uth Soeurng, CEO

Management

Mr. Uth Soeurng, 34yrs, from Kampong Thom Province, In term of education,

he has a Master’s Degree in Accounting & Finance obtained in 2002 from a

French School in Vietnam (CVFG) and is currently pursuing qualifications as a

Chartered Financial Analyst (CFA). He spent more than 10 years’ working in

several senior management functions in commercial baking and microfinance

in Hattha Kasekar, PRASAC and ANZ banking group in Cambodia. He has proven skills in Leasing,

commercial & corporate lending, portfolio management, credit & risk management, finance and

also IT & MIS. During his time with ANZ, he won the 1st Corporate Sale Award in 2009 economic

crisis, and held a Credit Approval Discretion limit (CAD) of up to USD 2 million while exercising his

commercial CAD as Credit Risk Manager in late 2010. Recently, he also led successfully the ATM

& Mobile Banking project at Hattha Kasekar Limit using the newest technology.

Mr. Mao Polo, DCEO&CROJoined Ly Hour Microfinance Institution Plc. as Deputy Chief Executive Officer

and Chief Risk Officer in 2012. He was born in 1977. He was a scholarship

student from National University of Management (former: Faculty of Business).

He graduated his Bachelor of Business Administration (BBA), majored in

Accounting and Finance in 1999. Then in 2004, he obtained a Master of

Business Administration (MBA), majored in General Management from Preston University (College

of Business Administration and Management), recognized by the Legislature of the Wyoming State,

United State of America. He started his first career with Food for the Hungry International as

Finance Assistant after graduation and then quickly promoted to Country Accountant from 2000 to

2005. He moved to CDRI – Cambodia’s Leading Independent Development Policy Research Insti-

tute as Senior Accountant till 2008. He had been working for ANZ Royal Bank (Cambodia) Limited

from 2008 to 2012 as Credit Risk Manager where he held the Credit Approval Discretion – CAD to

approve loan request for a single customer up to USD 2 Million and then promoted to Head of Retail

Lending where he looked after the whole retail lending portfolio including SME & Home Loans.

Annual Report 201213

Mrs. Sok Sophorn, DCEO&COOBorn in July, 4th, 1967. She obtained a Bachelor Degree in Accounting from

National University of Management in 1991.She have attended numerous

courses on management. She had more than 20 years’ experience with bank-

ing industry like Foreign Trade Bank, Cambodian Commercial Bank, Credit

Agricole Indosuez, Maybank and ANZ Royal Bank. While she was working with

ANZ Royal Bank, she had received the First Place Award of Customer Service. She has joined with

Ly Hour Microfinance Institution plc since Jan 2012 as Head of Operation. Based on her seniority

and capability, she then promoted to be Deputy Chief Executive Officer and Chief Operation Officer

in March 2013 where she has a broader and majored responsibility in all strategic and technical

aspect related to the general management, operations, information technology, human resource,

administration and marketing of the institution.

Mr. KIM Bunnavuth, Head of Internal AuditKim has completed his Bachelor of Business Administrative in Accounting at

National University of Management in 1995 and Master of Business Adminis-

tration in Finance at Charles Sturt University, Australia in 2005.

More than 17 years, Mr. Kim earned more experience from big 4 audit firms

(KPMG & PWC) as Senior Auditor, with manufacturing as an Internal AuditManager and many different multinational companies/firms as Finance Manager/Financial Controller.

Mr. Kim has possessed a strong background in Accounting, Finance and Auditing as demonstrated

through his past leadership roles in multinational companies and solid experience with professional

accounting firms. Mr. Kim has participated successfully in the development of policies and proce-

dures for companies he served under which resulted in better internal controls and increased

growth.

Annual Report 2012 14

Org

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Operational Area

Note: This map used for Ly Hour Branch only.

Oddar Meanchey

Banteay Meanchey

Poipet

Siem Reap

Stung Treng

Preah Vihear

Ratanakiri

MondulkiriKratie

Kampong Cham

Kampong Chhang

Phnom Penh

Kampong Speu Prey VengKandal

Svay RiengTakeo

Shihanuk Village

Koh Kong

Pursat

Kampong Thom

Battam Bong

Pailin

Kep

Kampot

Office

Note

Operating Area

Target Area

Non


A. Service

Ly Hour Microfinance Institution is strongly focusing on the customer services, maintaining a

closed and harmony relationship with the customers, friendly serving with smile, acting profes-

sionally and ethically to ensure a high standard of best customer services.

B. Products

As can be seen that the need of the customers in term of funding source to support and expand

their business operations as well as to improve their living standard is increasing nowadays in the

rural area, Ly Hour microfinance has decided to offer credit facilities to respond to the actual need

of our potential customers. The facility is very flexible depending on the customer’s cash flow, with

a long term maturity, and varieties of repayment arrangement. There are two types of credit facil-

ity, one is small loan and another one is medium loan which can be chosen as either Khmer Riel

currency or US Dollar currency.

2. Medium Loan

- Currency: Khmer Riel or US Dollar

- Loan Term: Long-term repayment arrangement

- Credit Limit: Depending on customer’s need

- Interest: Competitive offer

1. Small Loan

- Currency: Khmer Riel or US Dollar

- Loan Term: Long-term repayment arrangement

- Credit Limit: Start from USD 500 or equivalent

- Interest: Competitive offer

Products & Service


Ly Hour provide financial services to

people for business in Cambodia


Risk management plays a very significant part within Ly Hour Microfinance Institution in which the

management team is focusing and prioritizing because it’s a catalyst that helps bring the whole

institution towards success as well as maintain its long term sustainability. Therefore, in order to

ensure that there is an effective and efficient risk management, Ly Hour uses a key principle to

early prevent any unexpected risk from happening. To ensure the best practice of risk manage-

ment in place, Ly Hour has determined the scope of work/responsibility and segregated it into 3

core components such as (1) business function, (2) risk function and (3) audit function. It means

that each individual function is independently performing their duties and also accountable to

what they have done. Currently, Ly Hour is working on an establishment of some risk manage-

ment policy included operational risk, financial risk as well as credit risk.

In addition to this, to ensure that there is a systematic approach to manage risk and assist the

management team to find proper solutions in a timely manner, Ly Hour also introduces 4 critical

processes to be followed within the institution such as identify/categorize, assess, manage and

monitor. Ideally, Risk Department plays an active part in identifying any possible risk involving

with staff’s implementation as well as processes and procedures of other relevant departments.

After risk is identified then assessment will also be made to understand its possibility to incur as

well as any impacts that may have. Practically, it requires all the risk included its risk level to be

registered into a risk registered tool for a tracking purpose. Ly Hour, more importantly, develops

an appropriated approach/strategy to resolve and/or reduce such an impact for instance mitigate,

reduce, transfer or transform the risk. Last but not least, Ly Hour will strictly monitor all the risk to

ensure that they have been properly managed and resolved in an effective way and to some

extent new action plans should be taken into account should the risk is still at a high attention.

Risk Management


Directors report 22

Balance sheet 25

Income statement 26

Statement of changes in equity 27

Cash flow statement 28

Notes to the financial statements 29

APPENDIX: Notes on compliance with the Central Bank’s Prakas 47

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2012


DIRECTOR’S REPORT:

The Board of Directors (the directors) hereby submit their report together with the

unaudited financial statements of Ly Hour Microfinance Institution Plc. (Ly Hour) for the year

ended 31 December 2012.

PRINCIPLE ACTIVITIES:

The principle activity of the institution is to provide loan to customers through its head

office in Phnom Penh, and in a number of provincial and district branches in the Kingdom of Cam-

bodia. On 02 October 2012, the institution received its license from the National Bank of Cambo-

dia (”the Central Bank”) to provide the loans to customers.

FINANCIAL PERFORMANCE:

The financial performance for the year ended 31 December2012 is set out in the

income statement on page 26.

ASSETS:

Before preparing the Ly Hour Microfinance Institution’s financial statements, the

Directors took necessary steps to ensure that all assets that are unlikely to be realized to return

in the ordinary operating of the business at their values as shown in the accounting records of the

institution could be written off to the amount in which they may expect to be realized.

At the date of this report, the Directors are not aware of any circumstance which would

render the values attributed to the assets in the financial statements of the Institution mis-

leading in any material aspect.

VALUATION METHODS:

At the date of this report, the Directors are not aware of any circumstance which has

arisen that would render the existing method of valuation of those assets in the financial state-

ments of the institution misleading or inappropriate in any material aspect.

CONTINGENCY AND OTHER LIABILITIES:

At the date of this report, there is no:

(a) Charge on the assets of the institution that has arisen since the end of the year that

secures the liabilities of any person; or


(b) Contingent liability in respect of the institution that has arisen since the end of the

year other than in the ordinary course of business.

CHANGE OF CIRCUMSTANCES:

At the date of this report, the Directors are not aware of any circumstance not other-

wise dealt in this report or the financial statements of the institution which would render any

amount stated in financial statements misleading in any material aspect.

UNUSUAL TRANSACTION:

In the opinion of the Directors, as of 31 December 2012, the financial performance of

the institution showed there was no items, transactions or events of a material and unusual nature

were materially affected.

THE BOARD OF DIRECTORS:

The members of the board of directors during the year and as at the date of this report

are:

- Oknha Ly Hour Chairman, Board of directors

- Oknha Ly Sopheark Member, Board of Director

- Mrs. Liao Xi Member, Board of Director

- Mr. Tsai Ching Cheng Member, Board of Director

RESPONSIBILITIES OF BOARD OF DIRECTORS TO THE FINANCIAL STATEMENTS

The Directors are responsible to ensure that the financial reports are properly and

fairly produced in all material aspects of the financial position and its financial performance and

cash flow statement of the institution at the year end of 31 December 2012. In preparing this

report, the Directors are required to:

1. Adopt appropriate accounting policies that are supported by reasonable, and

prudent judgment and estimate and then apply them consistently.

2. Comply with the disclosure requirements and the guideline issued by the National

Bank of Cambodia and Cambodia Accounting Standard or if any departure from such standards

in the interest of fair presentation ensures that this has been appropriately disclosed, explained

and quantified in the financial statements.


3. Maintain adequate accounting records and the effective internal control systems.

4. Prepare the financial statements on going concern basis unless it is appropriated to

assumption that the institution will not able to operation its business in the foreseeable future.

5. Effective control and direct the institution and be involved in all main decisions

which will be effected to all material aspects of it operation and the result of institution and to

ensure that all material effected was properly shown in financial statements.

APPROVAL OF FINANCIAL STATEMENTS:

The Directors approved on the financial statements together with the notes, present

fairly, in all material aspects of financial position as the date of 31 December 2012 and its financial

performance and statement of cash flow for the year-ended in accordance with the guidelines

issued by the National Bank of Cambodia and Cambodia Accounting Standard.

_________________

Oknha Ly Hour

Chairman, Board of Directors


BALANCE SHEET

As of 31 December 2012

ASSET

Cash on hand

Balance with Central Bank

Balance at banks

Loans

Other assets

Property and equipment

Total assets

LIABILITY AND EQUITY

LIABILITIES

Income tax Liabilities

Other liabilities

Total liabilities

EQUITY

Share capital

Retained earnings

Total equity

Total liabilities and equities

Notes

3

4

5

6

7

8

9

10

11

KHR’000

(Unaudited)

13,449,939

1,001,386

957,542

3,451,802

92,733

267,962

19,221,364

542

17,479

18.021

19,975,000

(771,657)

19,203,343

19,221,364

USD

(Unaudited)

3,366,693

250,660

239,685

864,031

23,212

67,074

4,811,355

136

4,375

4,511

5,000,000

(193,156)

4,806,844

4,811,355

2012


INCOME STATEMENT

For the end of 31 December 2012

Interest income

Interest expense

Net interest income

Other income

Personnel Expenses

Depreciation and Amortization Expenses

General and Administrative Expenses

Operating profit

Reversal of provision/(provision) for

bad and doubtful loans

Grant income

Profit before income tax

Income tax expense

Net profit

Notes

12

13

14

15

16

9

KHR’000

(Unaudited)

116,334

-

116,334

43,842

(460,605)

(105,547)

(364,079)

(770,055)

-

-

(770,055)

(1,602)

(771,657)

USD

(Unaudited)

29,120

-

29,120

10,974

(115,295)

(26,420)

(91,134)

(192,755)

-

-

(192,755)

(401)

(193,156)

2012


CASH FLOW STATEMENT

For the end of 31 December 2012

STAT

EMEN

T O

F C

HA

NG

ES IN

EQ

UIT

Y

For t

he e

nd o

f 31

Dec

embe

r 201

2

Bal

ance

as

of 0

1 A

ugus

t 201

2

Tran

sfer

to s

hare

cap

ital

Tran

sfer

to re

serv

es

Div

iden

d pa

id

Pro

fit fo

r the

yea

r

Bal

ance

as

of 3

1 D

ecem

ber 2

012

(una

udite

d)

US$

equ

ival

ent (

unau

dite

d)

Shar

e

Cap

ital

KH

R’0

00

-

19,9

75,0

00

- - -

19,9

75,0

00

5,00

0,00

0

Shar

e

Prem

ium

KH

R’0

00

- - - - -

Stat

utor

y

Res

erve

s

KH

R’0

00

- - - - -

Ret

aine

d

Earn

ings

KH

R’0

00

- - - -

(771

,675

)

(771

,675

)

(193

,156

)

Tota

l

KH

R’0

00

-

19,9

75,0

0 - -

(771

,657

)

19,2

03,3

43

4,80

6,84

4

Notes

15

6

7

10

9

8

11

3

Thousand Riels

(Unaudited)

(770,055)

105,547

(664,508)

(3,451,802)

(998,750)

(799,000)

(92,733)

17,479

(5,989,314)

(1.060)

(5,990,374)

(373,509)

(373,509)

19,975,000

19,975,000

-

-

-

13,611,117

USD

(Unaudited)

(192,755)

26,420

(166,335)

(864,031)

(250,000)

(200,000)

(23,212)

4,375

(1,499,203)

(265)

(1,499,468)

(93,494)

(93,494)

5,000,000

5,000,000

-

-

-

3,407,038

2012


Cash flow from operating activities


Adjustment:

Depreciation and amortization expenses

Operating profit before changing assets

and operating loans

Changing in assets and loans to Customers


Balance with other banks

Other assets

Other liabilities

Cash flow used in operation

Income tax paid

Net cash from operating activities

Cash flow from Investing activities

Purchase of property and equipment

Net cash used in investing activities

Cash from financing activities

Cash from share capital

Net cash used in financing activities

Net (decrease)/increase in cash and

cash equivalents

Cash and cash equivalent beginning of the year

Currency translation differences

Cash and cash equivalent at the end of the year

1. BACKGROUND INFORMATION

Ly Hour Microfinance Institution (Ly Hour) was established in 2012. It was registered

with the Ministry of Commerce as a private limited liabilities company under registered license

number Co.2046KH/2012 dated on August 6, 2012. On October 20, 2012, the institution received

its microfinance license (MFI) from the National Bank of Cambodia (Central Bank).

Primary activities of the institution are to provide the microfinance services to low

income people and medium enterprise and active economic in Cambodia through its Head Office

in Phnom Penh and Branch Offices in Province and other District Offices through the country-

wide.

The Institution was incorporated and registered in the Kingdom of Cambodia. The

institution’s head office is located at No. 314, Street Charles De Gaulle, Sangkat Orrusey2, Khan

7 Makara, Phnom Penh, Kingdom of Cambodia. The institution has 36 employees as of Decem-

ber 31, 2012.

2. SUMMARY OF SIGNIFICATION OF ACCOUNTING POLICIES

The principle accounting policies adopted in the preparation of the financial state-

ments are set out below:

2.1 Base of Preparation

The financial statements have been prepared in accordance with the Cambodia

Accounting Standard (CAS) and the guidelines of the National Bank of Cambodia. In applying

CAS, the institution applies the CFRS 7, the Financial Instrument Disclosure. The accounting

principles which were applied, may diverge from General Accepted Accounting Principle

(”GAAP”) adopted in other countries and jurisdictions. The disclosures of the financial statements

are not intended to show the financial position, performance and cash flow statement in accord-

ance with the jurisdictions other than of the Kingdom of Cambodia. Consequently, these financial

statements are addressed only to those who are informed about the accounting principles, proce-

dures and the implementing in the Kingdom of Cambodia only. The financial statements have

been prepared in US Dollars (USD) under the historical cost convention.

2.2 Currency Translation

A. Functional and presentation currency

Items included in the financial statements of the institution are measured using the

primary economic environment which it is operational (The Functional Currency). The financial

statements are presented in US Dollars, which it is the institution’s functional and presentation

currency.

The translation of US Dollars (USD) to Khmer Riels (KHR) is used for preparation of

the financial statements and this translation is based on the average official exchange rate regu-

lated by the National Bank of Cambodia as at this report date which was USD1 equal to KHR

3,995 (31 December 2012).

B. Transactions and balances

Transactions in currencies other that US Dollars, the functional and presentation

currency, are translated into KHR at the exchange rate prevailing at the date of the transactions.

Foreign exchange gains and losses resulting from the settlement of such transactions and from

the translation at the year-end exchange rate of monetary assets and liabilities denominated in

currencies other USD are recongnized in the income statement.

2.3 Basis of aggregation

The financial statements included the financial reports of head office and other

branches after elimination of all balance and inter-branches transactions.

2.4 Cash and cash equivalents

For the purposes of the cash flow statement, cash and cash equivalents comprise

cash on hand, the non-restricted balances with the Central Bank, and balances with other banks,

with original maturities of three months or less from the date of acquisition.

2.5 Loans to customers

Loans to customers are stated in the balance sheet at the amount of the principal

outstanding less any amounts written off and provision for bad and doubtful loans.

Loans are written off when there is no realistic prospect of recovery. Recovery of previ-

ously written-off loans is recognized in the income statement.

2.6 Provision bad and doubtful loans.

The institution follows the mandatory credit classification and provisioning as required

NOTES TO THE FINANCIAL STATEMENTS

For the year end of 31 December 2012


by the Prakas No. B7-02-186 dated 13 September 2002. This Prakas requires microfinance insti-

tutions to classify their loan portfolio into the following four classes based on a number of days

past due of principal and/or interest repayment and ensure that the minimum mandatory level of

specific provisioning is provided depending on loan classification, regardless of the assets

(except cash) pledged as collateral, as follows:

Loan classification

Short term loan (less than 1 year) Number of days past due Provision

Standard Less than 30days 0%

Substandard Equal to or more than 30 days 10%

Doubtful Equal to or more than 60 days 30%

Loss Equal to or more than 90 days 100%

Long term loan (more than 1 year)

Standard Less than 30 days 0%




2.7 Property and equipment

Property and equipment are stated at historical cost less accumulated depreciation

and accumulated impairment. Historical cost includes expenditure that is directly attributable to

the acquisition of the items.

Subsequent costs are included in the asset’s carrying amount or recognized as a

separate asset, as appropriate, only when it is possible that future economic benefits associated

with the item will flow to the Institution and the cost of the item can be measured reliably. All other

repair and maintenance are charged to the income statement during the financial year in which

they are incurred.

Depreciation of property and equipment is charged to the income statement on a

declining balance as the follows.

Office improvement 20%

Office equipment 25%

Information technology (“IT”) equipment 50%

Furniture and Fitting 25%

Motor vehicle 25%

2.8 Provision:

Provisions are recognized when the Institution has a legally or present constructive

obligation as a result of past events; it is probable that an outflow of resources will be required to

settle the obligation; and the amount has been reliably estimated.

When there are a number of similar obligations, the number of this outflow will be

required in settlement is determined by considering the class of obligations as a whole. A provi-

sion is recognized even if the likelihood of an outflow with respect to any one item included in the

same class of obligations may be small.

2.9 Interest income:

Interest income on loans to customers, balance with central bank and balance with

other banks are recognized on accrual basis. Where a loan becomes non-performing loan, the

interest income will be recorded in suspended until it is received actual cash payment.

2.10 Fees and commission incomes

The institution recognized the fees and commission incomes from a diverse range of

services serves to its customers. This fee income is recognized when the loan disburse to cus-

tomers.

2.11 Leases:

Leases in which a significant portion of risks and rewards of ownership of assets are

retained by the lessor are classified as operating leases. Payments made under operating leases

are charged to the income statement on a straight-line basis over the period of the leases.

2.12 Annual Income tax

The annual income tax in the year is recognized by calculating base on the law on

taxation which was already adopted or partly adopted as the reporting date in Cambodia where

the institution operates and generates the taxable income.

Taxes are calculated based on the current interpretations of the law on taxation and

regulations. However, these regulations are subjected to periodic variation and the ultimate deter-

mination of tax payment will be imposed by the tax authorities after their final tax inspection. While

there is any differentiation of the final tax assessment from the original records, those variances

will impact the income tax.Annual Report 201231 Annual Report 2012 32

2.13 Rounding of amounts

The presenting amounts in the financial statements have been rounded off to the

nearest thousand KHR and US Dollar amounts, respectively.

3.Cash on hand

For Statement of cash flow, cash and cash equivalents comprised:

4. Balance with Central Bank

A.Statutory capital deposit

In compliance with Prakas No. B7-07-209 dated 13 September 2007 on the Licensing

of Microfinance Institutions, the institution is required to maintain a statutory capital deposit with

the Central Bank of 10% of registered capital. This deposit is refundable when institution voluntar-

ily liquidate its business.

B. Interest:

The current accounts are non-interest bearing. The statutory capital deposit account in US$

which earns interest of 0.12% per annum.

5. Balance with Banks

Current accounts are non-interest bearing. Annual interest rates on fixed accounts and

Saving accounts are summarized as below:

2012

Fixed accounts 2.07%

Saving accounts 1.00%

6. Loans to customers

Cash on hand


Balance with banks

KHR’000

Unaudited

13,449,939

2,636

158,542

13,611,117

USD

Unaudited

3,366,693

660

39,685

3,407,038

USD

Unaudited

3,365,679

1,014

3,366,693

Head office

Branches

KHR’000

Unaudited

13,445,889

4,050

13,449,939

2012

2012

Current accounts

Fixed accounts

Saving accounts

KHR’000

Unaudited

1,998

799,000

156,544

957,542

USD

Unaudited

500

200,000

39,185

239,685

2012

Individual loans

Specific provision

Provision for bad and doubtful loans

KHR’000

Unaudited

77,731

187,022

1,151,443

2,035,606

3,451,802

USD

Unaudited

19,457

46.814

288,221

509,539

864,031

2012

Current account

Statutory capital deposit

KHR’000

Unaudited

2,636

998,750

1,001,386

USD

Unaudited

660

250,000

250,660

2012


a. Analysis by loan maturity

b. Analysis by currency

C. Analysis by economic sector

d. Analysis by relationship

e. Analysis by location

f. Analysis by security on performing and non-performing loans

g. Analysis by interest rate

The annual interest which was put as the operation in the year as follows:

2012

Loan in US$ 14.40%-30.00%

7. Other assets

Less than 1 month

From 1 month and less than 3 months

From 3 months and less than 12 months

From 1 year and less than 5 years

KHR’000

Unaudited

77,731

187,022

1,151,443

2,035,606

3,451,802

USD

Unaudited

19,457

46.814

288,221

509,539

864,031

2012

Phnom Penh

KHR’000

Unaudited

3,451,802

3,451,802

USD

Unaudited

864,031

864,031

2012

Accrued interest receivable

Prepaid expenses

KHR’000

Unaudited

31,950

60,783

92,733

USD

Unaudited

7,997

15,215

23,212

2012

Standard loans:

Secured

Unsecured

Substandard loans:

Secured

Unsecured

Doubtful loans:

Secured

Unsecured

Loss loans:

Secured

Unsecured

KHR’000

Unaudited

3,451,802

-

-

-

-

-

-

-

3,451,802

USD

Unaudited

864,031

-

-

-

-

-

-

-

864,031

2012

US Dollars

KHR’000

Unaudited

3,451,802

3,451,802

USD

Unaudited

864,031

864,031

2012

Agriculture

Trading and commerce

Construction

Services

Transportation

Others

KHR’000

Unaudited

13,982

1,179,524

167,280

349,196

-

1,741,820

3,451,802

USD

Unaudited

3,500

295,250

41,873

87,408

-

436,000

864,031

2012

External customers

Staff loans

KHR’000

Unaudited

3,451,802

-

3,451,802

USD

Unaudited

864,031

-

864,031

2012


by the Prakas No. B7-02-186 dated 13 September 2002. This Prakas requires microfinance insti-

tutions to classify their loan portfolio into the following four classes based on a number of days

past due of principal and/or interest repayment and ensure that the minimum mandatory level of

specific provisioning is provided depending on loan classification, regardless of the assets

(except cash) pledged as collateral, as follows:

Loan classification

Short term loan (less than 1 year) Number of days past due Provision

Standard Less than 30days 0%




Long term loan (more than 1 year)

Standard Less than 30 days 0%




2.7 Property and equipment

Property and equipment are stated at historical cost less accumulated depreciation

and accumulated impairment. Historical cost includes expenditure that is directly attributable to

the acquisition of the items.

Subsequent costs are included in the asset’s carrying amount or recognized as a

separate asset, as appropriate, only when it is possible that future economic benefits associated

with the item will flow to the Institution and the cost of the item can be measured reliably. All other

repair and maintenance are charged to the income statement during the financial year in which

they are incurred.

Depreciation of property and equipment is charged to the income statement on a

declining balance as the follows.

Office improvement 20%

Office equipment 25%

Information technology (“IT”) equipment 50%

Furniture and Fitting 25%

Motor vehicle 25%

8. P

rope

rty

and

equi

pmen

t

As

of 0

1 A

ugus

t 201

2

Cos

t

Acc

umul

atio

n de

prec

iatio

n

Net

boo

k va

lue

The

year

end

of 3

1 D

ecem

ber 2

012

Ope

ning

net

boo

k va

lue

Add

ition

s

Rec

lass

ifica

tion

Dis

posa

l

Dep

reci

atio

n ch

arge

s

Net

boo

k va

lue

at th

e en

d of

per

iod

As

of 3

1 D

ecem

ber 2

012

Cos

t

Acc

umul

atio

n de

prec

iatio

n

Net

boo

k va

lue

US

$ eq

uiva

lent

(una

udite

d)

Leas

e

Impr

ovem

ent

KH

R’0

00

- - - - - -

25,2

05

- -

(5,0

41)

20,1

64

25,2

05

(5,0

41)

20,1

64

5,04

7

Offi

ce

Equ

ipm

ent

KH

R’0

00

- - - - - -

150,

590 - -

(37,

647)

112,

943

150,

590

(37,

647)

112,

943

28,2

71

Equ

ipm

ent IT

KH

R’0

00

- - - - - -

53,7

18

- -

(26,

859)

26,8

59

53,7

18

(26,

859)

26,8

59

6,72

3

Furn

iture

Fitti

ng

KH

R’0

00

- - - - - -

20,8

30

- -

(5,2

07)

15,6

23

20,8

30

(5,2

07)

15,6

23

3,91

1

Mot

or

Vehi

cles

KH

R’0

00

- - - - - -

123,

166 - -

(30,

793)

92,3

73

123,

166

(30,

793)

92,3

73

23,1

22

TOTA

L

KH

R’0

00

- - - - - -

373,

509 - -

(105

,547

)

267,

962

373,

509

(105

,547

)

267,

962

67,0

74

KHR’000

Unaudited

1,602

-

1,602

9.Income tax expenses

1. Provision for income tax

2. The reconciliation of income tax expense computed at the statutory tax

rate to the income tax expense shown in the income statement is as follows:

In accordance with the law on taxation of Cambodia, the institution has an obliga-

tion to pay in the form of either tax on profitat the rate of 20% of its annual taxable profits or

minimum tax rate 1% of its turnover whichever is higher.

3. Other tax matters.

The institution’s monthly tax returns are subject to periodic examination by the

General Department of Taxation. Some areas of tax laws and regulations may be opened to

different interpretation; therefore, the tax amounts which reported in the financial statements

could be changed at a later date upon the final determination by the General Department of

Taxation.

Current tax (minimum tax)

Deferred tax

USD

Unaudited

401

-

401

2012

KHR’000

Unaudited

-

1,602

(1,060)

-

542

Beginning balance

Current income tax (minimum tax)

Income tax paid

Currency Translation difference

USD

Unaudited

-

401

(265)

-

136

2012

KHR’000

Unaudited

(770,055)

1,602

1,602


Minimum tax1%

USD

Unaudited

(192,755)

401

401

2012


10. Other liabilities

11. Share capital

The Shareholders and number of shares are shown as below table:

The total number of authorized shares at the end of the year 2012 was 5,000,000

shares with value at USD1 per share and all issued shares are fully paid.

12. Interest income

13. Other operating incomes

14. Personnel expenses

15. Depreciation and amortization expenses

KHR’000

Unaudited

1,978

15,501

17,479

Accumulated on other operating expenses

Withholding tax

USD

Unaudited

495

3,880

4,375

2012 KHR’000

Unaudited

109,563

6,771

116,334

Individual Loans

Balance with Central Bank and banks

USD

Unaudited

27,425

1,695

29,120

2012

KHR’000

Unaudited

43,825

17

43,842

Fee and commission income

Penalty income

USD

Unaudited

10,970

4

10,974

2012

KHR’000

Unaudited

384,768

57,508

1,988

12,246

4,095

460,605

Salary and wages

Incentive

Employee training

Other employee benefits

Health Insurance

USD

Unaudited

96,312

14,395

498

3,065

1,025

115,295

2012

KHR’000

Unaudited

105,547

-

105,547

Tangible depreciation

Intangible amortization

USD

Unaudited

26,420

-

26,420

2012

KHR’000

Unaudited

5,193,500

4,993,750

4,993,750

4,794,000

19,975,000

Lok Oknha Ly Hour

Lok Oknha Ly Sopheark

Mrs. Liao Xi

Mr. Tsai Ching Cheng

USD

Unaudited

1,300,000

1,250,000

1,250,000

1,200,000

5,000,000

Ownership

26%

25%

25%

24%

100%

Shares

1,300,000

1,250,000

1,250,000

1,200,000

5,000,000

Lok Oknha Ly Hour

Lok Oknha Ly Sopheark

Mrs. Liao Xi

Mr. Tsai Ching Cheng

2012


16. General and administration expenses

17. Other leases

Operating lease commitments

These operating leases mainly relate to the office rental, which is renewable upon

having mutual agreement. Where the Institution is the lessee, the future minimum lease pay-

ments under non-cancellable operating leases are as follows:

18. Financial risk management

The Institution’s activities are exposed to a variety of financial risks: credit risk, market

risk including currency risk, interest rate risk and pricing risk. Taking risks is a core of the financial

business, and the operational risks are an inevitable consequence of being in business.

18.1 Credit risk

The Institution takes on exposure to credit risk, which is the risk that counter parties

will cause a financial loss by failing to discharge an obligation. Credit risk is the most important

risk for the Institution business. Credit exposure arises principally in lending activities that lead to

loans to customers. There is also credit risk in off-balance sheet financial instruments, such as

loan contracts. The credit risk management is carried out by credit committee. The credit policies

are included documents the lending policy, collateral policy, credit approval and processes and

procedures implemented to ensure compliance with Central Bank policies guidelines.

A. Credit risk measurement

The Institution assesses the probability of default of individual counterparties by

focusing on borrowers forecast profit and cash flow. The credit committee is responsible for

approving loans to customers.

B. Risk limit control and mitigation policies

The Institution operates and provides loans to individuals or small-medium enter-

prises within the Kingdom of Cambodia. The Institution manages limits and controls the concen-

tration of credit risk whenever it is identified.

The Institution employs a range of policies and practices to mitigate credit risk. The

most traditional of these is the taking of security in the form of collateral for loans to customers,

which is common practice. The Institution implements guidelines on the acceptability of specific

classes of collateral or credit risk mitigation. The principal collateral types secured for loans to

customers are:

- Mortgages over residential properties (land, building and other properties); and

- Charges over business assets such as land and buildings.

KHR’000

Unaudited

24,008

89,404

8,044

801

59,167

11,778

10,359

18,481

9,192

14,403

40

18,387

123

99,892

364,079

Motor vehicle expenses

Rental and utilities

Business trip expense

Professional cost

Office supplies

Marketing and advertising cost

Security

Communication

Printing

Repair and maintenance

Bank charge

Patent and license fee

Loss on exchange rate

Other costs

USD

Unaudited

6,010

22,379

2,014

201

14,810

2,948

2,593

4,626

2,301

3,605

10

4,603

31

25,003

91,134

2012

KHR’000

Unaudited

119,850

359,550

479,400

No later than1 year

Later than 1 year and no later than 5 years

USD

Unaudited

30,000

90,000

120,000

2012


C. Impairment and provisioning policies

The Central Bank requires microfinance institutions to classify their loan portfolio into

four classes and ensure that the minimum level of specific provision is made depending on the

classification concerned and regardless of the assets pledged as collateral as follows:

2012

Standard 0%

Substandard 10%

Doubtful 30%

Loss 100%

D. Maximum exposure to credit risk before collateral held or other credit

enhancements

The above table represents a worst case scenario for credit risk exposure to the Insti-

tution at 31 December 2012 without taking into account any collateral held or other credit

enhancements. For asset in balance sheet, the exposure set out above is based on net carrying

amounts.

Management is confident in its ability to continue to control and sustain minimal credit

risk exposure to the institution relating to its loans to customers on the following basis:

-100% of the loans in the portfolio are considered to be nor past due.

-The Institution has adopted a more stringent selection and collection process for

granting loans to customers.

E. Loans to customer

The customer’s loans are summarized as below:

For the purpose of loan provisioning, the expected recovery from collateral (except

cash) is not taken into consideration in accordance with the Central Bank’s requirements.

18.2 Market Risks

The Institution takes on exposure to market risk, which is the risk that the fair value or

future cash flow of financial instruments, will fluctuate because of changes in market prices.

Market risk arises from open positions in interest rates, currency and equity products, all of which

are exposed to general and specific market movements and changes in the level of volatility of

market rates or prices such as interest rates, credit spreads, foreign exchange rates and equity

prices.

A. Risk on foreign exchange

The Institution operates in Cambodia and transacts by US$ all of this will not meet to

foreign exchange risk. Foreign exchange risk will arises from future commercial transactions and

recognized assets and liabilities denominated in a currency that is not the Institution’s functional

currency.

The table below is the summary of foreign exchange risk of institution as date of 31

December 2012. The table is included the financial instruments of the institution which follow the

carrying amount and currency of equivalent to thousand riels.

KHR’000

Unaudited

957,542

3,451.802

31,950

4,441,294

Credit exposure relating asset

on balance sheet:

Balance with banks

Loan to customers

Other assets

USD

Unaudited

239,685

864,031

7,997

1,111,713

2012

KHR’000

Unaudited

3,451,802

-

-

3,451,802

-

3,451,802

Loans to customers neither past due nor impaired

Loans to customers past due but nor impaired

Loans to customers individually impaired

Gross

Provision on bad and doubtful loans

Net loans to customers

USD

Unaudited

864,031

-

-

864,031

-

864,031

2012


C. Off balance sheet

Operating lease commitments

The institution is a tenant, all future expenditures of the minimum lease

cost under leasing agreement which are not eliminated shown in the financial note 17.

18.4 Capital management

The Institution objective of the capital management is broader concept than equity

which was shown in the balance sheet. The capital managements are as follows:

-To comply with the Central Bank required on capital requirement.

-To protect the ability of the institution in business going concern so the institution can

have the ability to continue provide the interest to shareholders and related parties and

-Maintain a solid capital reserved for supporting to the development of institution business.

The central bank required all licensed microfinance institutions to fulfill a). Minimum

capital requirement and b). To comply with the solvency ratio, liquidity ratio and other required

ratio.

The below table summarized regulatory capital: B. Pricing risk

The Institution is not exposed to a securities price risk because it does not

have any investment held and classified on the balance sheet either as available for sale or at fair

value through profit or loss. The Institution does not currently have a policy to manage its price

risk.

18.3 Liquidity Risk

A. Liquidity risk management process:

The managements of institution monitor balance sheet liquidity and

manage the concentration and profile of debt maturities. The monitoring and reporting the form of

the reviewing of the daily cash position and projections for the next day, week and month, as

these are key periods for liquidity management.

B. Funding process

The source of institution liquidity arising from the shareholder paid up capi-

tal. This source of liquidity is regularly monitored daily.

KHR’000

Unaudited

19,975,000

(771,657)

19,203,343

Tier 1 Capital

Share capital

Retained earning

USD

Unaudited

5,000,000

(193,156)

4,806,844

2012

KHR’000

57

57

95

95

(38)


Financial assets

Cash on hand


Balance with banks

Loans to customers

Other Assets

Total financial assets

Financial liabilities

Other liabilities

Total financial liabilities

Net financial assets

USD

13,449,882

1,001,386

957,542

3,451,802

31,950

18,892,562

1,978

1,978

18,890,584

TOTAL

13,449,939

1,001,386

957,542

3,451,802

31,950

18,892,619

2,073

2,073

18,890,546

Equivalent in KHR’000


1. Solvency Ratio

The licensed micro �nancial institution required to maintain the solvency ratio in more than

15% in any circumstances. As of 31 December 2012 the solvency ratio of the institution is 402.58%.

The calculation of own fund and solvency ratio is shown in detail in table 1.

2. Liquidity ratio

The licensed micro �nancial institution required to maintain the liquidity ratio in at least

100% in any circumstances. As of 31 December 2012 liquidity ratio of the institution is 100%.

The calculation of liquidity ratio in detail was shown in table 2.

3. Net opening position foreign currency

The licensed micro �nancial institution required in all time to maintain any net opening

position foreign currency or all net opening position of foreign currency in long or short term is not

more than 20% of direct net worth equity of micro�nance institution.

The calculation of net opening position foreign currency in detail of table 3

4. Classifications of credit, provision and liability ratio

The licensed Micro�nance Institution required classifying the rank of the credit in 4 classes

which is based on the borrower situation and regularly repayment and interest.

The classi�cation of credit, provision and the calculation of liability ratio are shown in table 4.

1. Subtotal A: Items to be added

-Capital or endowment

-Reserve other than revaluation reserve

-Premium related to capital (share premium)

-Provision for general banking risk and prior agreement from the

central bank

-Retained earning

-Net profit for the last financial year which unaudited

-Other items approved by Central Bank

2. Subtotal B: Items to be deducted

-For shareholders, directors, managers, and their next kin

*unpaid portion capital

*Advances, loans, security and the agreement of the persons

concerned above

-Holding of own share at their book value

-Accumulated loss

-Formation expenses

Losses determined by the dates other than the end of the annual

accounting period (Including provision on loan and doubtful debt

security)

3. Total C: Base net worth

4. Subtotal D: Item to be added

-Reserve revaluation with prior approval from the Central Bank

-Sub debt with prior approval from Central Bank could be included

up to 100% of base net worth

-Other Items with prior approval from central bank could be included

in the calculation of the net worth and shall not be more than the

base net worth

KHR’000

Unaudited

19,975,000

-

-

-

-

-

(771,657)

-

19,203,343

-

-

-

-

-

-

19,203,343

-

-

-

Appendix: Notes on the compliance with the Central Bank’s Prakas

As of the year end 31 December 2012.Table1 net worth and solvency ratio



Lable 2 Liquidity Ratio


1.Numerator (A)

Net worth

2.Denominator (B)

Assets (*)

-Cash

-Claims on the National Bank of Cambodia

-Assets collateralized by deposit

-Claims on sovereign rated AAA to AA-

-Claims on sovereign rated A+ to A-

-Claims on bank rated AAA to AA-

-Claims on sovereign rated BBB to BBB-

Claims on bank rated A+ to A-

-All other assets

1.Numerator: Liquid Asset

-Cash on hand

-Balance with Central bank

-Balance with banks

Subtotal (A)

Less:

-Amount owed to Central Bank

-Amount owed to banks

Subtotal (B)

Net liquidity (A-B)

Add:

-Portion of outstanding loan maturity less than 1 month

Liquid Assets (C)

2.Ddenominator: Adjusted amount of Deposit (D)

Category of deposits KHR’000 %

-Voluntary savings - 25%

Liquidity Ratio(C/D)

KHR’000

13,449,939

2,636

957,542

14,410,117

-

-

-

14,410,117

-

14,410,117

14,410,117

-

-

-

19,203,343

KHR’000

13,449,939

1,001,386

-

-

-

-

-

-

4,770,039

19,221,364

Weighing

0%

0%

0%

0%

20%

20%

50%

50%

100%

KHR’000

19,203,343

-

-

-

-

-

-

-

-

4,770,039

4,770,039

5. Subtotal E: Items to be deducted

-Equity participation in banking and microfinance institutions

-Other items

6. Total F: Net worth=C+D+E

Table1 net worth and solvency ratio


3.Solvency ratio (A/B)

402.58%

(*) the denominator ratio is the aggregate assets (Net amount after deduc-

tion the provision and depreciation) and off balance sheet number which was measured

by the risk limitation. According to the parkas of net worth calculation of microfinance

institution the denominator is excluded the items which was deducted when calculation

of the net worth.


Tabl

e 3

net o

peni

ng p

ositi

on fo

reig

n cu

rren

cy

As

of 3

1 D

ecem

ber 2

012

Cur

renc

ies

US

$

KH

R

Tota

l

Net

wor

th

Ass

ets

KH

R’0

00

19,2

21,3

07 57

19,2

21,3

64

Liab

ilitie

s

and

Cap

ital

KH

R’0

00

19,2

21,2

69 94

19,2

21,3

65

Net

Ope

n

Posi

tion(

NO

P)

KH

R’0

00 38

(38) -

19,2

03,3

43

NO

P/

Net

wor

th %

0.00

%

-0.0

0%

-

Lim

it %

20%

20%

Loan classification

1-Loans of 1 year or less

1-1 Standard

1-2 Substandard past due ≥ 30 days

1-3 Doubtful past due ≥60 days

1-4 Loss past due ≥90 days

Subtotal (1)

2-Loans more than 1 year

2-1 Standard

2-2 Substandard past due ≥ 30 days

2-3 Doubtful past due ≥180 days

2-4 Loss past due ≥360 days

Subtotal (2)

Total (1+2)

All loan past due >30days(A)

Loans outstanding(B)

Delinquency Ratio(A/B)

Amount

KHR’000

332,917

332,917

3,118,885

3,118,885

3,451,802

Rate

%

10%

30%

100%

10%

30%

100%

Specific Provision

KHR’000

-

-

-

-

-

-

-

-

-

-

3,451,802

-


Operational Area

Event of the Year

Grand Opening of the Head Office of Ly Hour Microfinance Institution Plc.

Head Office (Phnom Penh)No 314, St. Charles de Gaulle, Sangkat Orussey 2, Khan 7Makara, Phnom Penh.

Telៈ 023 980 888 / 023 999 368,

E-Mailៈ [email protected]

Websiteៈ www.lyhourmfi.com.kh

Oddar Meanchey

Banteay Meanchey

Poipet

Siem Reap

Stung Treng

Preah Vihear

Ratanakiri

MondulkiriKratie

Kampong Cham

Kampong Chhang

Phnom Penh

Kampong Speu Prey VengKandal

Svay RiengTakeo

Shihanuk Village

Koh Kong

Pursat

Kampong Thom

Battam Bang

Pailin

Kep

Kampot

Office

Note

Operating Area

Target Area

Non

Address:


The grand opening participated by vital honor guests such as the National Bank Offic-

ers, local authorities, business partners, customers, managements and staffs of Ly Hour Microfi-

nance Institution Plc.

Ly Hour Microfinance Institution Plc. established during the end of 2012 and received

its official microfinance licensed number M.H 37 from the National Bank of Cambodia on 2 Octo-

ber 2012 in full capacity of an official operation to provide loan service to its customers. The Insti-

tution was officially inaugurated on 09 October 2012 under the highly presidency of Her Excel-

lency Ouk Maly, Deputy Governor of the National Bank of Cambodia and highly representative

of H.E Chea Chanto, Governor of the National Bank of Cambodia.

Head office (Phnom Penh)No.314, St. Charles de Gaulle, Sangkat Orussey 2, Khan 7 Makara, Phnom Penh.Tel: 023 980 888 / 023 999 368E-mail: [email protected], Website: www.lyhourmfi.com.kh

excellent service with a smile provide financial …...excellent service with a smile provide...

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