CIMB BANK PLC FINANCIAL STATEMENTS FOR THE PERIOD

CIMB BANK PLCCASH FLOW STATEMENTFOR THE PERIOD FROM 20 SEPTEMBER 2010 (DATE OF INCORPORATION)TO 31 DECEMBER 2010NoteCash flows from operating activitiesLosses before taxationFrom 20 September to31 December 2010US KHR’ 181,287(394,682)(1,599,645)Changes in working capital:Other assetsDeposit from banksDeposits from customersAmount due to suppliers and parent companyOther liabilitiesNet cash generated from operating 13722,312,754Cash flows from investing activitiesCapital guarantee deposit with the Central bankReserve requirement with the Central bankPurchase of property and equipmentPurchase of intangible assetsNet cash used in investing 616,501)(27,147,683)Cash flows from financing activitiesProcess from issuing of shares37,000,000149,961,000Net increase in cash and cash 6,072Adjustments for:DepreciationAmortisationCash flows from operating profits before changesin operating assets and liabilitiesCash and cash equivalent on 20 September 2010(date of incorporation)Cash and cash equivalents at end of theperiod894The accompanying notes on pages 10 to 35 form an integral part of these financial statements.9

CIMB BANK PLCNOTES TO THE FINANCIAL STATEMENTSFOR THE PERIOD FROM 20 SEPTEMBER 2010 (DATE OF INCORPORATION)TO 31 DECEMBER 20101.BACKGROUND INFORMATIONThe Bank was incorporated in Cambodia on 20 September 2010 under Registration No. Co.1935E/2010 dated 23 September 2010 granted by the Ministry of Commerce andcommenced operations on 19 November 2010. The Bank is a wholly owned subsidiary ofCIMB Bank Berhad, a licensed bank incorporated in Malaysia. CIMB Group Holdings Berhad(formerly known as Bumiputra-Commerce Holdings Berhad), a publicly listed companyincorporated in Malaysia, is the ultimate holding company.The Bank is principally engaged in all aspects of banking business and the provision ofrelated financial services in Cambodia. The Bank holds a banking operation licence that wasissued by the National Bank of Cambodia (“the Central Bank”) on 11 November 2010.The registered office of the Bank is located at No. 20AB Corner Phreah Norodom Boulevard& Street 118, Sangkat Phsar Chas, Phnom Penh, Kingdom of CambodiaThe financial statements were authorised for issue by the Board of Directors on XXX.2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESThe significant accounting policies adopted in the preparation of the financial statements areset out below.2.1Basis of preparationThe financial statements have been prepared in accordance with the guidelines issued bythe Central Bank and Cambodian Accounting Standards (“CAS”). In applying CAS, the Bankalso applies the Cambodian Financial Reporting Standard (“CFRS”) 7: Financial Instruments:Disclosures. The accounting principles applied may differ from generally acceptedaccounting principles adopted in other countries and jurisdictions. The accompanyingfinancial statements are therefore not intended to present the financial position and results ofoperations and cash flows in accordance with jurisdictions other than Cambodia.Consequently, these financial statements are addressed only to those who are informedabout Cambodia accounting principles, procedures and practices.The financial statements are prepared using the historical cost convention.The preparation of financial statements in accordance with CAS requires the use ofestimates and assumptions that affect the reported amounts of assets and liabilities anddisclosure of contingent assets and liabilities at the date of financial statements and thereported amounts of revenues and expenses during the reporting period. Although theseestimates are based on management’s best knowledge of current event and actions, actualresults ultimately may differ from those estimates. The areas involving a higher degree ofjudgement or complexity, or areas where assumptions and estimates are significant to thefinancial statements are disclosed in Note 3 to the financial statements.10

CIMB BANK PLCNOTES TO THE FINANCIAL STATEMENTSFOR THE PERIOD FROM 20 SEPTEMBER 2010 (DATE OF INCORPORATION)TO 31 DECEMBER 20102.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)2.2New accounting standards and interpretations(a) New standards, amendments to existing standards and interpretations effective in year2010There were no new accounting standards, amendments to published standards orinterpretations to existing standards that were effective and applicable to the Bank for thefinancial year period 31 December 2010.(b) Standards and amendments to existing standards issued but not yet effectiveOn 28 August 2009, the National Accounting Council announced the adoption of CambodianInternational Financial Reporting Standards (“CIFRS”) which are based on all standardspublished by International Accounting Standard Board including other interpretation andamendment that may occur in any circumstances to each standards by adding “Cambodian”.Public accountable entities shall prepare their financial statements in accordance with CIFRSfor accounting period beginning on or after 1 January 2012.The following Cambodian International Accounting Standards (“CIAS”) and CIFRS andamendments to existing standards, which have been published are relevant and mandatoryfor the Bank’s accounting period beginning on or after 1 January 2012, but have not beenearly adopted by the Bank: CIAS 1 (Revised), Presentation of Financial StatementsThe revised standard prohibits the presentation of items of income and expenses (i.e.,'non-owner changes in equity') in the statement of changes in equity. All non-ownerchanges in equity are to be shown in a performance statement. Entities can opt topresent one performance statement (i.e. statement of comprehensive income) or twostatements (i.e. income statement and statement of comprehensive income). Entitieswhich restate or reclassify comparative information are required to present a restatedbalance sheet as at the beginning of the comparative period. The revised standard alsoclarifies that potential settlement of a liability by issue of equity is not relevant indetermining the classification of a liability as current or non-current liability.In addition, the standard clarifies that an entity will present an analysis of othercomprehensive income for each component of equity, either in the statement ofchanges in equity or in the notes to the financial statements. CIAS 16 (Amendment), Property, Plant and Equipment (and consequential amendmentto CIAS 7, 'Statement of Cash Flows')The amended standard requires entities, whose ordinary activities comprise renting andsubsequently selling assets, to present proceeds from sale of those assets as revenueand to transfer the carrying amount of an asset to inventories when the asset becomesheld for sale. A consequential amendment to CIAS 7 requires cash flows arising frompurchase, rental and sale of those assets to be classified as cash flows from operatingactivities.11

CIMB BANK PLCNOTES TO THE FINANCIAL STATEMENTSFOR THE PERIOD FROM 20 SEPTEMBER 2010 (DATE OF INCORPORATION)TO 31 DECEMBER 20102.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)2.2New accounting standards and interpretations (continued)(b) Standards and amendments to existing standards issued but not yet effective (continued) CIAS 19, Employee BenefitsThe objective of this standard is to prescribe the accounting and disclosurerequirements for employee benefits. The Standard requires an entity to recognise: (a)a liability when an employee has provided service in exchange for employee benefits tobe paid in the future; and (b) an expense when the entity consumes the economicbenefit arising from service provided by an employee in exchange for employeebenefits. CIAS 24 (Revised), Related Party DisclosuresCIAS 24 was revised by (a) simplifying the definition of a related party, clarifying itsintended meaning and eliminating inconsistencies from the definition; and (b)providing a partial exemption from the disclosure requirements for governmentrelated entities. CIAS 32, Financial Instruments: PresentationThe objective of this standard is to establish the principles for presenting financialinstruments as liabilities or equity and for offsetting financial assets and financialliabilities. It applies to the classification of financial instruments, from the perspective ofthe issuer, into financial assets, financial liabilities and equity instruments as well asclassification of related interest, dividends, losses and gains. CIAS 36 (Amendment), Impairment of AssetsThe amended standard states that where fair value less costs to sell is calculated onthe basis of discounted cash flows, disclosures equivalent to those for value-in-usecalculation should be made. CIAS 38 (Amendment), Intangible AssetsThe revised standard provides clarifications in respect of fair value measurement of anintangible asset acquired via a business combination and permits the grouping ofintangible assets as a single asset if every asset has a similar useful economic life. CIAS 39, Financial Instruments: Recognition and MeasurementThe standard establishes principles for recognising and measuring financial assets,financial liabilities and some contracts to buy or sell non-financial items. Adoption ofCIAS 39 will result in the following revisions to the accounting policies on financialinstruments:12

CIMB BANK PLCNOTES TO THE FINANCIAL STATEMENTSFOR THE PERIOD FROM 20 SEPTEMBER 2010 (DATE OF INCORPORATION)TO 31 DECEMBER 20102.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)2.2New accounting standards and interpretations (continued)(b) Standards and amendments to existing standards issued but not yet effective (continued)Impairment of financial assetsThe Bank currently follows the mandatory credit classification and provisioning asrequired by Prakas No. B7-09-074, dated 25 February 2009, issued by the CentralBank. CIAS 39 requires the Bank to assess at each reporting date whether there isobjective evidence that a financial asset or group of financial assets is impaired,either on an individual or collective assessment basis. Impairment loss is measuredas the difference between an asset’s carrying amount and present value of estimatedfuture cash flows (excluding future credit losses that have not been incurred)discounted at the asset’s original effective interest rate. For the purposes of collectiveimpairment assessment, assets are grouped on the basis of similar credit riskcharacteristics.Deposits from banks and customersThe Bank currently measures deposits from banks and customers at the depositamount. CIAS 39 requires that financial liabilities (which include deposits from banksand customers) to be measured at amortised cost.Interest income and interest expenseThe Bank currently recognises interest income and expense on an accrual basis atcontractual rates, except where serious doubt exists as to the collectibility, wheninterest is suspended until it is realised on a cash basis. CIAS 39 requires interestincome and expense for all interest-bearing financial instruments to be recognisedusing the effective interest method. In respect of a financial asset or a group ofsimilar financial assets that are impaired, interest income is to be recognised atinterest rate used in discounting future cash flows for purpose of measuring theimpairment loss. CIFRS 7 (Amendment), Financial instruments - DisclosuresThe revised standard requires enhanced disclosures in respect of fair valuemeasurement and liquidity risk. In particular, the amendment requires disclosure of fairvalues by fair value measurement hierarchy as follows: Level 1 - Quoted prices (unadjusted) in active markets for identical assets orliabilities;Level 2 - Inputs, other than quoted prices included within Level 1, that areobservable for an asset or liability, either directly or indirectly; andLevel 3 - Inputs for an asset or liability that are not based on observable marketdata.The standard also emphasises the interaction between quantitative and qualitativedisclosures about the nature and extent of risks associated with financial instruments.13

CIMB BANK PLCNOTES TO THE FINANCIAL STATEMENTSFOR THE PERIOD FROM 20 SEPTEMBER 2010 (DATE OF INCORPORATION)TO 31 DECEMBER 20102.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) CIFRS 9, Financial instrumentsThe standard establishes principles for financial reporting of financial assets that willpresent relevant and useful information to users of financial statements for theirassessment of the amounts, timing and uncertainty of the entity's future cash flows.CIFRS 9 specifies the bases for classification and measurement of financial assets,including some hybrid contracts. They require all financial assets to be: (a) classified onthe basis of an entity's business model for managing the financial assets and thecontractual cash flow characteristics of a financial asset; (b) initially measured at fairvalue, plus transaction costs in the case of a financial asset not at fair value throughprofit or loss; and (c) subsequently measured at amortised cost or fair value based onasset classification.Other than the standards, improvement and amendments to existing standards as set outabove, the other published standards, amendments and interpretations to existing standards,which are applicable for accounting periods beginning on or after 1 January 2010, are notrelevant to the Bank’s operations.2.3Foreign currencies(i)Functional and presentation currencyItems included in the financial statements of the Bank are measured using the currency ofthe primary economic environment in which the Bank operates (‘the functional currency’).The financial statements are presented in United States dollars (“US ”), which is the Bank’sfunctional and presentation currency.For the sole regulatory purpose of complying with the Prakas No. B7-07-164 dated 13December 2007 of the Central Bank, a translation to Khmer Riel (“KHR”) is provided for thebalance sheet, income statement, statement of changes in equity, cash flow statement andnotes to the financial statements as of and for the financial period ended 31 December 2010using the official rate of exchange regulated by the Central Bank as at the reporting date,which was US 1 to KHR 4,053. Such translation amounts are unaudited and should not beconstrued as representations that the US amounts represent, or have been or could be,converted into KHR at that or any other rate.(ii)Transactions and balancesTransactions in currencies other than US are translated into US at the exchange rateprevailing at the date of transaction. Foreign exchange gains and losses resulting from thesettlement of such transactions and from the translation of monetary assets and liabilitiesdenominated in currencies other than US at the period-end exchange rate, are recognisedin the income statement.2.4Cash and cash equivalentsFor the purpose of the cash flow statement, cash and cash equivalents comprise balanceswith original maturity of less than three months from the date of acquisition, including cash onhand, non-restricted balance with the Central Bank and balances with other banks.14

CIMB BANK PLCNOTES TO THE FINANCIAL STATEMENTSFOR THE PERIOD FROM 20 SEPTEMBER 2010 (DATE OF INCORPORATION)TO 31 DECEMBER 20102.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)2.5Loans and advances to customersAll loans and advances to customers are stated in the balance sheet at outstanding principaland interest, less any amounts written-off and provision for loan losses.Loans and advances are written-off when there are no realistic prospects of recovery.Recoveries of loans and advances previously written off or provided for is recognised in theincome statement.2.6Provision for loan lossesThe Bank follows the mandatory credit classification and provisioning as required by PrakasB7-09-074 dated 25 February 2009 issued by the Central Bank. The Prakas requirescommercial banks to classify their loans, advances and similar assets into five classes andthe minimum mandatory level of specific provisioning is provided, depending on theclassification concerned and regardless of the assets pledged as collateral as follows:Rate ofprovision (%)General provision:NormalSpecific provision:Special mentionSubstandardDoubtfulLoss2.7132050100Other credit-related commitmentsIn the normal course of business, the Bank enters into other credit-related commitmentsincluding loan commitments, letters of credit and guarantees. The accounting policy andprovision methodology are similar to those for originated loans as stated above. Specificprovisions are raised against other credit-related commitments when losses are consideredprobable.2.8Property and equipmentProperty and equipment are stated at cost less accumulated depreciation and impairmentloss. Historical cost includes expenditure that is directly attributable to the acquisition of theassets.15

CIMB BANK PLCNOTES TO THE FINANCIAL STATEMENTSFOR THE PERIOD FROM 20 SEPTEMBER 2010 (DATE OF INCORPORATION)TO 31 DECEMBER 20102.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)2.8Property and equipment (continued)Subsequent expenditure relating to an item of property and equipment are included in theasset’s carrying amount or recognised as a separate asset, as appropriate, only when it isprobable that the future economic benefits associated with the item will flow to the Bank andthe cost of the item can be measured reliably. All other repairs and maintenance are chargedto the income statement during the financial period in which they are incurred.Work-in-progress is not depreciated. Depreciation of property and equipment is charged tothe income statement on a straight-line basis over the estimated useful lives of the individualassets at the following annual rates:Leasehold improvementsOffice equipmentFurniture, fixtures and fittingsComputer equipmentMotor vehicles%202010 – 2020 – 33.3320An asset’s carrying amount is written down immediately to its recoverable amount if theasset’s carrying amount is greater than its estimated recoverable amount.Gains and losses on disposals are determined by comparing the proceeds with the carryingamount and are recognised in the income statement.2.9Intangible assetsIntangible assets, which comprise acquired comp

CIMB BANK PLC INCOME STATEMENT FOR THE PERIOD FROM 20 SEPTEMBER 2010 (DATE OF INCORPORATION) TO 31 DECEMBER 2010 7 Note From 20 September to31 December 2010 US KHR’ 000 Unaudited Interest income 9,139 37,040 Interest