Annual Report 2012

Key Figure 

2012 in Million KHR 2011 in Million KHR 2010 in Million KHR 

Number of Borrowers 299,507 266,914 238,535 

Operating Provinces 18 16 15 

Operating Districts 133 112 100 

Operating Villages 8,795 6,766 5,409 

% of Woman Borrowers 80.9% 82.5% 84% 

Total Staff 2,425 1,693 1,288 

Total Assets 

KHR 705,542 Million KHR 481,272 Million (US$ 

(US$ 176,606 Thousand) 119,156 Thousand) 

KHR 354,237 Million 

(US$ 87,401 Thousand) 

Loan Portfolio 1 







Equity plus Quasi Equity 2 







Net Income / Average Total Assets 4.9% 6.1% 6.4% 

Net Income / Net Financial Income 25.3% 29.3% 31.1% 

Operational Self-Sufficiency 3 133% 139% 142% 

Financial Self-Sufficiency 4 126% 132% 136% 

Net Financial Income 







Salary / Net Financial Income 24.1% 24.3% 24.7% 

Borrowers per Credit Officer 302 332 398 

Average Loans Portfolio Per Credit Officer 

KHR 490.67 Million 

(US$ 123 Thousand) 





Portfolio-at-Risk > 30 days 5 0.11% 0.07% 0.63% 

Average Amount Per Group Loan 


(US$ 0.23 Thousand) 





Average Amount Per Individual Loan 







Exchange rate KHR 3,995 per US$ KHR 4,039 per US$ KHR 4,053 per US$ 

NotE: 

1 Loan Portfolio: Gross loan outstanding. 

2 Equity Plus Quasi Equity: Total equity includes subordinated debt. 

3 Operational Self-Sufficiency: Measures how well an MFI covers its costs through operating revenues. 

Formula: Financial Income/ (Financial expense + Operational expense + Loan loss provision) 

4 Financial Self-Sufficiency: Measures how well an MFI can cover its cost, taking into account a number of adjustments to operating revenues and expense. The 

purpose of most of these adjustments is to model how well the MFI could cover its costs if its operations were unsubsidized and it was funding its expansion with 

commercial-cost liabilities. 

Formula: Financial Income/ (Financial expense + Operational expense + Loan loss provision + (Average Equity-Average Fixed Asset)*Inflation Rate 

5 Portfolio-at-Risk > 30 days: (Portfolio at risk >30 days to 365 days (of overdue principle) + Restructure loan) / gross loan port folio. 

B 

Annual Report 2012 

Microfinance Institution “Amret”

TABLE OF CONTENT 

Vision And Mission 

01 

Milestones 

02 

Message From Chairperson 

03 

Shareholders 

04 

Board Of Directors 

05 

Notes From CEO 

08 

Management Team 

10 

Organizational Chart 

14 

Business Performance Review 

16 

Risk Management 

22 

Our Clients 

24 

Branch Network 

25 

Staff, Staff Development & International Visiting Program (IVP) 

26 

Social & Environmental Responsibility 

28 

Financial Statements For The Year Ended 

32 

Appendix: Notes On Compliance With The Central Bank’s Prakas 

78 

Contact Details 

86 

Microfinance Institution “Amret” Annual Report 2012 C

Vision and Mission 

Vision 

To be an outstanding financial institution that improves the living 

standards of the population and contributes to the economic and 

social development of Cambodia. 

Mission 

To provide a wide range of financial services for low income people 

as well as micro, small and medium enterprises - while at the same 

time achieving a high level of financial and social performance. 

Amret borrower who received a loan to buy an harvesting machine 

1 



Milestones 

Historical milestones of the evolution of Amret are presented below: 

1991: 

1995: 

GRET, a French NGO, sets up an experimental project to deliver microcredit to the rural population 

of Cambodia. The first experimental phase (EXPE I) is launched, with a single financial 

product known as Solidarity Credit (SC). 

Initialization of a second experimentation phase (EXPE II). Solidarity Credit is 

modified under new procedures while an Individual Credit (IC) product is launched. Meanwhile, 

GRET plans to transform the project into a microfinance institution. 

1996: Conception of the name Ennatien Moulethan Tchonnebat (EMT). 

1998: 

End of EXPE I. All activities transfer to EXPE II. As EMT becomes operationally 

self-sufficient, a new organizational chart is designed that transfers management responsibilities 

from technical assistants to local staff. 

1999: EMT borrows from commercial banks for the first time. 

2000: 

EMT becomes a private limited company, “Ennatien Moulethan Tchonnebat Ltd.”, with a registered 

share capital of KHR 330 million from 2 shareholders of GRET and SIDI. 

2001: EMT receives its MFI license from the National Bank of Cambodia. 

2002: 

2003: 

EMT legally admits two new shareholders, Proparco and La Fayette Participations and considers 

investing in a new Management Information System (MIS). 

EMT launches a Certificate Deposit (CD) product in two branches. 

EMT redesigns Individual Business Loans to meet market needs, and lowers the 

interest rate from 4% to between 3.5% and 3.0%, according to loan amounts. 

Conclusion of permanent expatriate technical support. 

I&P joins EMT as a new shareholder 

2004: EMT is renamed as “Amret” on June 14, 2004. 

2005: 

Amret rolls out a new MIS “Microbanker Windows Version”. 

Amret diversifies individual loans into (1) Business Loan, (2) Educational Loan, (3) Home Improvement 

Loan and (4) Household Consumption Loan. 

Amret introduces the front-office operations - the conventional banking operations whereby the 

borrowing clients come to institutional branches. 

2006: Advans S.A becomes a shareholder. 

2007: Botta - the staff investment company- becomes a shareholder. 

2008: 

2009: 

2012: 

SIDI and I & P exit, but three new shareholders come in: Proparco, FMO 

and Oikocredit 

Amret obtained the license of deposit taking from public in January 2009 

By end of the year, all branches of Amret are ready to collect savings from the public. 

1. Exit of Oikocredit, and Advans SA taking over its shares. 

2. Go live of new Core Banking System (T24 MCB) and starting the roll out phase. 

Microfinance Institution “Amret” Annual Report 2012 

2

Message from Chairperson 

In year 2012 

Amret continued 

to develop and 

to strengthen its 

organisation: (i) 

loan portfolio 

continued to 

grow rapidly 

(+49% compared 

to 2011) with 

52,000 additional 

borrowers, with 

an extremely good quality of this portfolio; (ii) deposits 

almost doubled with 69,000 additional depositors; (iii) 29 

new branches were opened to better serve our clientele; 

(iv) small and middle sized enterprises (SMEs) are now 

served. Amret has, at the same time, pursued its efforts 

to strengthen its organization, internal control and risk 

management system. Amret has enhanced its credit 

methodologies and procedures and implemented a new 

on-line Core Banking System. 

These achievements translate into a very good financial 

performance, with a KHR 29.12 billion net profit for the 

year, higher than in 2011, and with very good profitability 

ratios. 

Those achievements are in line with Amret’s strategy to 

become a responsible commercial bank with a strong focus 

on MSMEs in rural areas and agriculture. Amret’s objective 

is to contribute to a strong and reliable financial industry by 

ensuring that it does not contribute to over-indebtedness to 

its clients and is strong enough to resist possible external 

shocks in the future. 

In 2013, Amret will continue with the same strategy and 

will: (i) promote saving behaviour among its rural clientele 

and increase the volume of deposits in order to reduce its 

average cost of funds; (ii) maintain a low level of credit 

risk while extending its credit activity to SMEs in a cautious 

way; (iii) launch a major effort to better serve commercial 

farmers and agri-related business; (iv) improve efficiency to 

decrease its operational expenses ratio. 

Finally, I would like to express my congratulations to the 

management and to the staff of Amret on behalf of the 

Board of Directors for their hard work and dedication 

which enabled Amret to perform well and become a 

stronger financial institution in 2012. 

Dr. Claude FALGON, 

Chairperson 

Continue the development together with the careful management and maintenance 

3 



Shareholders 

Advans SA SICAR (Advans SA) is a Venture Capital 

Investment Company with registered office in Luxembourg, 

whose mission is to build a network of microfinance 

institutions (MFI) in developing and emerging countries. 

Advans SA’s investment strategy consists in setting up 

green field MFIs and, as in the case of Amret, invest equity 

in existing MFIs, provided such MFIs share Advans’ vision 

and understand the strategic and operational benefits of 

joining an international network. 

Botta, which is a staff company, is registered as a private 

limited company and under Cambodian law; its registered 

office is in Phnom Penh, Cambodia. The company was 

created to invest in Amret only, and approved as a new 

shareholder by current shareholders due to attracting a 

long-term commitment from staff. Even if it is a small 

percentage, it is a long-term investment. 

FMO ( Nederlandse Financierings-Maatschappij voor 

Ontwikkelingslanden N.V.) is the entrepreneurial 

development bank of The Netherlands, created by a 

deed of incorporation in 1970. Its registered office is in 

The Hague, Netherlands. Its objective is to contribute to 

the development of business in developing countries in 

the interest of long term and sustainable economic and 

social progress in conformity with the intention of the 

governments of such countries. 

GRET (Groupe de Recherche et d’Echanges 

Technologiques) is a non-profit private organization based 

in France. Its objective is to contribute to sustainable and 

fair development, and to the alleviation of poverty and 

structural inequalities. GRET supports social and economic 

development projects in about 30 developing countries. 

La Fayette Participations (LFP) is an 

investment company registered in France as a “Société 

Anonyme” and created by Horus for the purpose of 

subscribing to shares in microfinance institutions. In 

creating LFP, Horus aimed to combine its technical 

expertise with shareholder status. The experience acquired 

by Horus in setting up LFP laid the corner stone of the 

creation of Advans. 

Proparco (Société de Promotion et de Participation 

pour la Coopération Economique) is incorporated under 

French law; its registered office is in Paris, France. Its 

objective is to promote the development of private sectors 

and, in a general manner, of a competitive productive 

sector in developing countries, and to execute all activities 

of a financial company. 

Note: 

Oikocredit sold all its 1,056 shares to Advans on December 

03 rd , 2011. 

The distribution of shares is as follows: 

Shareholder 

Number of Shares 

Face Value 

KHR 1,360,000/share 

(KHR’000) 

Share Capital 

Advans (previously known as LFI) 3,717 5,055,120 44.42% 

Botta 181 246,160 2.16% 

FMO 1,056 1,436,160 12.62% 

GRET 1,623 2,207,280 19.39% 

LFP 340 462,400 4.06% 

Proparco 1,450 1,972,000 17.32% 

Total 8,367 11,379,120 100% 


4

Board of Directors 

Dr. Claude FALGON, 

Chairman 

French, born in 1947. 

Appointed to the Board in 

August 2001 and became 

Chairman on 22 February 

2005. He obtained a PhD 

in economics at Michigan 

State University, USA, a 

post-doctorate in Management 

Science, ICG Paris, 

France and an MSc in Agriculture 

Economics, INA 

Paris, France. Claude Falgon 

is the president of Horus 

Development Finance, a 

consulting firm specialized 

in microfinance and SME 

finance. He is also executive 

director of Advans S.A. SI- 

CAR. 

Mr. CHEA Phalarin, 

Board Member 

Cambodian, born in 1967. 

Appointed to the Board on 

10 July 2000. He obtained 

his BBA in 1991 at Economics 

Science Institute 

in Phnom Penh, and his 

MBA in 2002 at National 

University of Management 

(NUM) & UTARA University 

of Malaysia. He worked 

for the Cambodian government 

from 1991 to 1995 at 

the Ministry of Agriculture, 

since when he has worked 

for Amret as a Credit Officer, 

General Trainer. He 

became the Chief Executive 

Officer at the end of 1997. 

Mr. Guillaume LEPOUTRE, 

Board Member 


Appointed to the Board 

on 22 march 2011. He obtained 

his Master’s degree 

in Finance from the University 

of Aix-Marseille and an 

MBA in Finance from the 

University of Paris IX Dauphine. 

After three year in 

the HSBC Group as a credit 

analyst, he joined the Credit 

Agricole Group in 1996. He 

worked in the factoring subsidiary 

of Crédit Agricole 

as Operation Manager until 

2004. After consulting assignements 

in Madagascar, 

he joined the Alstom Group 

as international cash collection 

manager. In 2010, he 

joined Gret in the positions 

of Microfinance Program 

Manager. 

Ms. Amanda 

JANE HANNAN, 

Board Member 

British, born in 1973. 


29 June 2012, she holds a 

degree in Mathematics acquired 

in 1994, and another 

degree of MSC Educational 

Research in 1995 from Manchester 

University, United 

Kingdom. In 1999, she 

obtained an ACA degree 

from Institute of Chartered 

Accountants in England 

and Wales (ICAEW), UK. 

Amanda Hannan has more 

than 14 years of experience 

in finance and corporate finance. 

From 2001 to 2006, 

she worked as Corporate 

Finance Manager for Grand 

Thornton in the UK and 

later on in France. From 

2006 to the present, she has 

worked in Horus Development 

Finance as Investment 

Officer in Paris, France. 

5 




Mr. Angus POSTON, 

Board Member 

British, born in 1971. 


25 December 2012, he holds 

an MA in Development 

Economics and Management 

from Manchester University, 

UK. From 1997 to 

2007 he worked as a consultant 

to banks, micro-finance 

institutions and social investors 

in Asia, the UK and 

Central Europe. From 2007 

to 2009 he worked for Barclays 

Bank in the UK. Since 

2009 he has been a Principal 

of Bridge, a microfinance 

support company focused 

on the Philippines. 

Mr. Jean-Claude LEULLIER, 

Board Member 



25 December 2012, he received 

a degree in Engineering 

in 1970, Diploma of 

Statistics from Institute de 

Statistiques de l’Université 

de Paris in 1972, and PhD in 

Geography, Paris VII University 

in 1973. He joined 

missions for agricultural and 

industrial development projects 

all over the world from 

1974 to 1985. From 1985 to 

1997 he worked for Groupe 

SCIC as Chief Financial Officer. 

From 1997 to 2005, he 

worked as a Chairman and 

Chief Executive Officer of 

SCIC Patrimoine, and since 

2005 he has worked as Senior 

Advisor in fund raising 

and enjoyed the position 

of Managing Director at 

Lyn Capital and Partner at 

Catalice. 

Mr. KAY Lot, 

Board Member 


Appointed to the Board 

on 25 December 2012, he 

graduated with a Bachelor 

of Science in Business Administration 

from Kennedy 

Western University, Indonesia, 

in 1997. From 1999 

to 2003, he was Head of 

Country Finance and later 

promoted to Head of Service 

Delivery at Standard 

Chartered Bank in Phnom 

Penh, Cambodia. From 

2003 to 2008, Kay Lot 

joined CamGSM Co., Ltd. 

(Mobitel) as Chief Financial 

Officer for the telecommunications 

and television 

businesses, during which 

he achieved Sarbanes-Oxley 

compliance and raised 

significant funding for the 

expansion of the company. 

From 2009 to 2012, he was 

promoted to be a Chief Operating 

Officer at the same 

company. In his professional 

career, Kay Lot was 

recipient of two significant 

awards for exceptional leadership 

and performances 

from both multi-national 

companies he worked for. 


6

Resigned Directors in Year 2012 

Mr. Emerson MAR, 

Board Member 

Cambodian, born in 1972 

Appointed to the board on 

17 December 2009. 

Mr. Emerson MAR 

resigned from the BoD, 

effective date of 31 March 2012. 

Mr. Steven 

DUCHATELLE, 

Board Member 


Appointed to the board on 

31 March 2008. 

Mr. Steven DUCHATELLE 


effective date of 29 June 2012. 

Ms. Emma SANDRINO, 

Board Member 

Pilipino, born in 1967 


29 June 2011. 

Ms. Emma SANDRINO 


effective date of 18 September 

2012. 

Amret’s clients is skewing smoked fish in Kampong Chhnang city of Kampong Chhnang province 

7 



Notes from CEO 

2012 was considered 

a good year 

for economic 

development in 

Cambodia due 

to the overall 

economic environment 

being 

conducive. In addition, 

there was 

adequate rainfall, 

while there was no big flooding despite the concern of 

many people in the Dragon year of the Chinese zodiac. 

Consistently with the positive economic growth, microfinance 

has played an important role in contributing to the 

economic and social development. Practically, the Credit 

Bureau and its regulation existed to implement compulsorily 

data integration and checking information before disbursement 

in the banking and microfinance sector from 

19 March 2012, which would reduce stakeholders’ stress 

from concerns about over-indebtedness. However, the average 

loan portfolio growth in the sector was 35% due to 

the expansion of the existing MFIs and the several new 

MFIs during the year. Responding to the sector changes, 

Amret increased its loan outstanding to 48.99% compared 

to last year’s portfolio which made an increase from KHR 

399,065 million (equivalent to US$ 98.80 million) to KHR 

594,579 million (equivalent to US$ 148.83 million), while 

saving collection had shown a significant increase from 

KHR 170,074 million (equivalent to US$ 42.10 million) in 

2011 to KHR 333,538 million (US$ 83.49 million) in 2012. 

This shows that the public is more confident in the microfinance 

sector as well as Amret, and is using banks and 

microfinance services. Even though the growth is positive, 

we are still aware of strong competition which is increasing 

rapidly as each MFI greatly increases its growth rate, 

and the entrance of several newcomers during the year (in 

total, 35 licensed MFIs by Dec 2012). However, with a lesson 

learned in last few years, MFI stakeholders have paid 

attention to the negative impact which may happen again 

due to excessive credit offered, and the potential impact of 

world economic crisis. Moreover, we have also implemented 

the Client Protection Principle to be integrated in our 

policies and procedures following the standard of Smart 

Campaign as well as the requirements of the Central Bank‘s 

regulation. Additionally, we integrated other social activities 

and non-financial services, such as collaboration with agricultural 

services to provide agricultural skills to villagers. 

We plan to do other education-related activities to enhance 

their living and social environment, and are in a process of 

upgrading Social Performance Management (SPM) to our 

strategic plan in order to ensure a sustainable growth in 

line with our Vision and Mission; practically, we plan to set 

up tools and indicators measuring the SPM performance, 

thanks partly to technical assistance from Oikocredit. 

Due to a good macro-economic environment, Amret grew 

since beginning of the period and mainly rose up in last 

quarter of the year. As a result, we have loan portfolio 

growth at 48.99% at the end of 2012 compared to loan 

outstanding by December 2011. Setting portfolio quality 

as a priority, Amret has maintained portfolio at risk (PAR) 

30 days at a very low rate which was 0.11% by end of year 

2012. Meanwhile, we still maintained a good market share 

in terms of the number of loan clients of 299,507 which is 

26% among the 35 licensed MFIs and Acleda bank in our 

18 operating provinces. 

Along with loan portfolio growth, we still continued a prioritized 

strategy to mobilize saving. With a multi-effort of 

building client ‘s confidence, awareness and customer service, 

the saving amount has sharply increased to US$ 83.49 

million, a rise of 96.11% compared to saving amount by 

the end of 2011. To fuel the long term saving in a stable 

and safe manner, Amret is committed to introducing other 

new financial products, and to set up the Risk Oversight 

Committee (ROC) in which ALCO is actively in the field 

for liquidity risk management. 

With a good performance for the whole year, we achieved a 

good level of profitability in which we gained KHR 29,121 

million, equivalent to US$ 7.29 million, an increase of 

18.76% compared to 2011 (KHR 24,520 million around 

US$ 6.07 million), in which RoAA is 4.93% and RoAE is 

23.21%. 

Since the demand of loan portfolio growth in US$ is faster 

compared to KHR, we have less tension to raise funds 

in the local currency because we can raise funds in KHR 

directly from some lenders while percentage of saving 

amount in KHR also increased. However, Amret still keeps 

a small part of back-to-back system and a special guarantee 

letter from BNP Paribas with Central Bank (NBC) and 

Foreign Trade Bank of Cambodia, respectively. Positively, 


8

Notes from CEO (Cont.) 

we noted that there are more foreign financial institutions 

that could lend us directly loans in local currency such as 

Oikocredit, Hivos Triodos Fonds and Triodos Doen, FMO 

and Norfund. In the situation of mismatched currency in 

financial resources, the increasing move to lend in US Dollars 

is still kept as our strategy for growth; especially for 

loan in big amount. 

In addition to growth, we implemented AML policy to 

avoid black money circulation and financing terrorism, 

Business Continuity Planning policy, Social Performance 

Policy and adoption of Core Banking System (CBS) (Temenos 

T24), which is expected to roll-out completely soon. 

Regarding creditability and transparency, Amret was inspected 

by Central bank regularly, audited by an External 

Auditor, PriceWaterhouseCooper (PWC), and was rated on 

financial performance by Microfinanza, an Italian Rating 

Company, recognized by CGAP, in December 2012, and 

it was graded A-, specifying that it has “strong capacity to 

meet its financial obligations, very good operations, stable 

even if it could be affected by major internal and external 

events”. 

With the aforementioned achievement, transparency and a 

prospective environment, Amret will prudentially grow in 

the following years. Accompanied by ambitious objectives, 

we are challenging to mobilize savings, especially from 

small depositors in remote areas, to diversify other financial 

services in existing and new operating areas, roll out 

new CBS, which is a centralized data system, and maintaining 

good portfolio quality in the following years. However, 

we are quite optimistic that we will achieve and overcome 

those challenges thanks to the regular updated and adaptable 

strategies with our strong commitment of staff, managers 

and the Board of Directors. 

Finally, we would like to sincerely thank all clients, creditors, 

suppliers, donors, local authorities, governmental institutions, 

especially Central Bank (NBC), staff and management, 

the board of directors and other stakeholders who 

have been supporting us so far to achieve the outstanding 

goals. 

Mr. CHEA Phalarin, 

CEO, Amret 

CEO of Amret gave an address to open the 09 th management seminar at Sokha hotel, Sihanouk ville 

9 



Management Team 

Mr. Chea Phalarin, 

Mr. Dos Dinn, 

Mr. Phat Reatana, 

Ms. Lim Sopha, 

Chief Executive Officer 


He obtained his BBA in 

1991 at Economics Science 

Institute in Phnom Penh, 

and his MBA in 2002 at National 


(NUM) & UTARA 

University of Malaysia. He 

worked for the Cambodian 

government from 1991 to 

1995 at the Ministry of Agriculture, 

since when he has 

worked for Amret as a General 

Trainer. He became the 

Chief Executive Officer at 

the end of 1997. 

Deputy Chief Executive 

Officer 


He obtained a Bachelor of 

Science in Agriculture in 

1996 at Royal University of 

Agriculture, and an MBA 

in 2001 at National University 

of Management (NUM) 

& UTARA University of 

Malaysia. He was recruited 

in 1996 to be the Provincial 

Supervisor in Kandal, 

and then transferred to the 

Marketing Unit in 1998 

and given the key position 

of Operations Manager in 

October 1999, he was promoted 

to Chief of Operations 

Officer in November 

2008. And in October 2011, 

he was promoted to Deputy 

Chief Executive Officer. 

Head of Risk Management 

and Compliance 


He graduated a Bachelor 

of Business Administration 

in field of Accounting 

at National University of 

Management and obtained a 

Master of Business Administration 

(MBA) at Charles 

Stuart University in Australia 

in field of Finance. He 

has worked in Amret since 

May 1997, initially as Internal 

Auditor, and was promoted 

to Head of Internal 

Audit in May 1999. In January 

2010, he was appointed 

to Head of Risk Management 

and Compliance to 

set up the risk management 

function. 

Head of Human 

Resources 


She holds a Bachelor of 

Business Administration 

and also obtained her MBA 

at Charles Stuart University 

in Australia. She joined 

Amret in 1997 and was subsequently 

promoted to Provincial 

Supervisor and then 

Chief Accountant. She was 

promoted to the position of 

Head of Finance in August 

2003. In April 2012, she was 

transferred to hold the position 

of Head of Human 

Resources. 

Deputy Governor of Takeo province presided over the opening ceremony of Amret new standard building of provincial office in Takeo 


10

Management Team (Cont.) 

Ms. Heng Sotheavy, 

Mr. Teang Sreng, 

Mr. Sean Thornnin, 

Mr. Chheng Yanith, 

Head of Marketing 


She obtained a Bachelor 


majoring in Marketing 

from National Institute of 

Management (NIM) (currently, 

National University 

of Management in 2003 

and a Bachelor of Education 

in English Language 

from Build Bright University 

(BBU) in 2009. Before 

joining Amret, she got 

many years experience in 

outreach and communication 

activities with various 

Non-Governmental Organizations 

(NGOs) and from 

March 2007 to June 2011 

she worked as Senior Communication 

and Marketing 

Manager for Population 

Service International (PSI). 

From then, she has worked 

for Amret as Head of Marketing. 

Head of Training 


He holds two Bachelor’s 

degrees – one is Bachelor 

of Education in English 

Language and another one 

is Bachelor of Business 

Administration majoring in 

Marketing. He obtained a 

Master Degree of Administration 

Business majoring 

in General Management at 

Build Bright University in 

Phnom Penh. Prior to that, 

he worked for Silaka Organization 

as Trainer from 

2004 to 2007, for Prakit/ 

FCB Cambodia for one 

year as Account Executive 

and for TOTAL Cambodge 

as Service Station Manager 

from 1999 to 2002. He 

started with Amret as Training 

Supervisor in January 

2007 and was later promoted 

to the position of Head 

of Training in May 2011. 

Head of Financial 

Services 


He obtained a Master of 


(MBA) in Business Management 

from University of 

Cambodia in 2006. Prior to 

that, he obtained two Bachelor 

Degrees, one is Bachelor 

of Economics in Finance 

and Banking in 2004, 

and another is Bachelor of 

English Education in TEFL 

in 2005. Since 2005, he has 

been working as part-time 

Lecturer of Business Management 

and Bank Management 

at some famous local 

and international universities. 

From 2007 to 2009, 

he worked for ANZ Royal 

Bank as Senior Assistant 

Relationship Manager Corporate 

and Institutional 

Banking. From 2009 to 

2011, he joined Amret as 

Deputy Head of Business 

Development. Then, he has 

been promoted as Head of 

Financial Services. 

Head of Credit 


He obtained a Bachelor 

of Science in Economics 

majoring in Finance and 

Banking from Institute of 

Technology and Management 

(currently, University 

of Puthisastra) in 2004. In 

2008, He obtained a Master 


from Royal University 

of Law and Economics 

(RULE). Since 2009, he has 

been working as part-time 

Lecturer of Bank Manageent 

at University of Cambodia 

and Vanda Accounting 

Institute. Yanith has 

over than 7 years of experience 

in microfinance institutions, 

and has specialized 

in credit product, methodology, 

training and coaching 

of credit officer and managers, 

and project management. 

He joined working 

with AMRET MFI in mid 

May 2007 as Senior Credit 

Controller, was promoted 

to be an Internal Control 

Unit Manager in 2009, and 

Deputy Head of Risk and 

Credit in 2011. 

11 




Mr. Tan Youhay, 

Mr. Sreng Channy, 

Mr. Phang Polyna 

Mr. Seng Hor, 

Head of Operations 


He graduated from Ukraine 

with a Master Degree of 

Science in Economics in 

1997. In 2000, he started 

working for Amret as Assistant 

Provincial Supervisor 

Kandal province. At the end 

of 2001, he was promoted 

to Provincial Supervisor of 

Kompot Province. In early 

2010, he was promoted to 

Head of Operations. 

Head of Information 

Technology 


He graduated from Russia 

in 1998, specializing in computing 

machines, complex 

systems and networks. He 

joined Amret in 2000, working 

with a foreign Technical 

Assistant as a programmer 

and developed in-house applications 

to manage loan 

performance before being 

appointed Head of Information 

Technology in February 

2005. 

Head of Provincial Office 

(Phnom Penh) 


He obtained a Bachelor 

of Science in Agriculture 

in 1995 at Royal University 

of Agriculture, and an 

MBA in 2008 at National 


(NUM). He was recruited 

in January 1996 to be a General 

Credit Agent in Kandal 

province, and then transferred 

to the Audit in July 

1996. He was promoted to 

the position of Provincial 

Manager in July 1999, and 

given the key position of 

Head of Provincial Office 

in May 2011. 

Head of Branch Set Up 

and Planning 


He obtained a Bachelor of 


in 2001 and MBA in 2008, 

at Norton University. He 

was recruited in 2002 as 

Deputy Provincial Manager 

of Kampot, and was 

transferred to Operation 

department as Planning 

Officer and promoted to 

Planning Unit Manager in 

2007. From 2011 to 2012, 

he joined in CBS project 

and responsible for two sub 

projects of credit and UAT. 

In December 2012, he 

was promoted to Head of 

Branch Set-up and Planning. 

Deputy Head of Department, Head of Provincial Office and Managers took part in the 9 th management seminar at Sokha hotel, Sihanouk ville 


12


Mr. Lon Leang Eng, 

Head of Treasury 

Secretariat 


He obtained a Master of 

Finance from National 


in 2008 and also obtained 

a Bachelor of Accounting 

from National Institute of 

Management in 2002. He 

was recruited as Treasury 

Unit Manager in 2007, promoted 

to Deputy Head of 

Finance in Nov 2011, and 

transferred to be Head of 

Treasury Secretariat since 

December 2012. Prior to 

his work with Amret, he 

had more than 7 years’ experience 

of accounting and 

financial careers with some 

local and international companies. 

Mr. Kin Nara, 

Head of Administration 

Affairs Secretariat 


He graduated from Build 

Bright University with a 

Bachelor of Management in 

2005 and a Master’s Degree 

of Finance and Banking in 

2009 from the same university. 

Before joining Amret, 

he acquired many years of 

experience starting from 

2001 working in the tourism 

industry. In 2005, he started 

working for Amret as an 

Administration Manager, 

then promoted to Deputy 

Head of Human Resources 

and Administration in June 

2009. He was transferred 

to Head of Administration 

Affairs Secretariat in April 

2012. 

Mr. Ohm Sareth, 

Acting Head of Finance 


He joined Amret Microfinance 

Institution in October 

2010 as Accounting 

Manager and was 

subsequently promoted to 

be Deputy Head of Finance 

in April 2012; since December 

2012 he has been the 

Acting Head of Finance. 

He was a Senior Auditor at 

PriceWater-HouseCooper, 

Cambodia Ltd from 2006 

to August 2010. He also had 

been employed in various 

sectors in various capacities 

since 1997. He is currently 

pursuing an ACCA qualification 

and so far has successfully 

passed 10 ACCA 

papers. He obtained a B.A 

in Accounting in 2006 and 

a Diploma in the Intensive 

English Program from Pannasastra 

University of Cambodia 

in addition to obtaining 

certificates from several 

other short training courses. 

13 



Organizational Chart 


14

Rice harvesting activity of Amret’s clients in Kampong Chhnang city, Kampong Chhnang province

Business Performance Review 

1 Political and Economic Environment In 2012 

The Cambodian economy keeps continuing its strong 

growth despite drought and the impact of slowdown in the 

economies in the European Union and United States of 

America. The economy grew 7.3% in 2012 mainly driven by 

continuous exports of garment and agricultural products, 

significant growth in the tourism sector, increase in foreign 

direct investment and local investment which benefited 

from development of the country’s banking sector. 

Inflation rose on average 2.9% during 2012. The Riel 

exchange rate was stable within the year- approximately 

4,100 riel per US$. Cambodia’s financial and banking sector 

was fast growing in terms of number of new registrations, 

credit performance, other services’ performance, and 

network expansion, especially for microfinance institutions. 

Increasing bank and MFI lending reflected the increase in 

private sector investment which generated and supported 

economic growth in all areas of the Kingdom. 

The export of agricultural products kept increasing in 

2012 especially rice, rubber, maize and cashew nuts. 

Despite extreme drought during this rainy season, the 

rice production further increased. Thus, the agricultural 

sector grew 4.3% in 2012. Export of garment products has 

continued to expand in U.S. and EU markets despite the 

global slowdown due to the relaxing of the EU’s rule of 

origin on preferential tariffs for least developed countries’ 

exports to the EU markets. The strong regional economic 

growth during 2012 played a crucial role in growing 

Cambodia’s tourism industry. 

The government, international development agencies and 

research institutes forecast the 2013 economic growth 

within the range of 6% to 7%. Exports are expected to 

grow due to continuation of the EU’s rules of origin and 

the assumption that the global uncertainty subsides. 

Key Economic Indicator 

Key Economic Indicator 2013f 2012e 2011 2010 2009 

Growth and Consumer Prices* 

GDP Growth (% change, yoy) 7.0 7.3 7.1 6.0 0.1 

Nominal GDP (US$ million) 15,473 14,231 12,937 11,634 10,400 

GDP per Capita (US$) 1,080 990 911 830 753 

Consumer Price Index (% change, yoy) 4.0 2.9 5.5 3.9 -0.6 

Trade and Investment* 

Export (US$ million) 6,460 5,583 5,219 3,884 2,996 

Import (US$ million) 8,267 6,908 6,710 5,466 4,490 

Foreign Direct Investment (US$ million) 1,352 763 678 762 520 

Public Sector* 

Government Revenue (% of GDP) 14.2 13.7 13.2 13.1 12.0 

Government Expenses (% of GDP) 20 19 20.7 21.3 20.4 

Financial Market** 

Credit to Private Sector (% change, yoy) 25 35.4 33.5 31 5 

Deposit (% change, yoy) N/A 26.2 20.4 27 32 

Credit by MFI (% change, yoy) N/A 38 51 43 8 

Exchange Rate (KHR/US$, eop) 4,100 4,100 4,039 4,050 4,169 

e= estimation 

f= forecast 

Source: 

* Data in 2009 to 2012: Ministry of Economic and Finance (February 2013) while Data in 2013: World Bank Update Report (January 2013) 

** National Bank of Cambodia (February 2013) & Cambodia Microfinance Association (December 2012) 


16

Business Performance Review (Cont.) 

2 Financial Sector Developments 

Favourable macro-environment and macroeconomic 

stability of the country prompted the financial sector to 

continue to grow in 2012 whilst the health of the sector 

remained robust in which banks and MFIs reported high 

profitability and very low non-performing loan (NPL) for 

the year. 

As of the end of 2012 there are 32 commercial banks, 7 

specialized banks and 35 licensed MFIs of which 7 are 

licensed to take public customers’ deposits (MDI). 

According to the National Bank of Cambodia (NBC), the 

value of total assets across the sector amounted to US$11 

billion, representing 70% of GDP of Cambodia. As 

compared to the same period in 2011, in the first 9 months 

of 2012 loans grew by 32.78% with 1.6million borrowers, 

and deposits grew by 27.67% with 1.9million depositors. 

Meanwhile, due to more prudence in lending practices by 

banks and MFIs, NPL declined from 3.32% to 2.79%. 

The NBC continues to support these prudent practices and 

the establishment of Credit Bureau Cambodia will provide 

an additional tool for banks and MFIs to mitigate their 

credit risks. 

The NBC also actively supports the sector to provide 

financial access and inclusion to various kinds of financial 

products and services to the general public. As reported 

by the World Bank, to date only 13% of the Cambodian 

population has access to financial products and services, 

and 84% of MSMEs are financing their operations outside 

the formal banking system, which represents a loss of at 

least US$3.7 billion in opportunity cost. 

Furthermore, the NBC will implement the Financial 

Sector Development Strategy 2011-2020 of the Royal 

Government of Cambodia, which puts more emphasis on 

a broader provision of access to financial services to low 

income populations and to effectively promote the use of 

national currency. 

The growth of the financial sector remains a significant 

contribution to the development of small and medium 

enterprises (SME) and agriculture which is aligned with the 

RGC’s long-term strategy of exporting more milled rice to 

ensure economic growth as a whole. 

Source: National bank of Cambodia http://www.nbc.org.kh/ 

english/news_and_events/speeches.php] 

17 




3 Lending Performance 

In addition to our current products - Solidarity Credit 

(joint liability group loan), Individual Credit (business, 

consumption, home improvement, bio-digester, office 

construction and staff loan), Amret launched a new product 

known as SME loan (Small and Medium Enterprise). 

This product started a pilot test in June 2012 and will be 

completed and rolled out in 2013. 

Loan Outstanding: 

This is the second consecutive year of strong growth of 

Amret Co., Ltd. Compared to last year’s performance, 

Amret Co., Ltd grew 51% (in term of US$), about 81% of 

which came from individual loans. Even with that strong 

growth, Amret can still maintain good portfolio quality, 

PAR30 < 0.11%. 

The above result came from good economic conditions 

(high economic growth and more FDI), more network 

expansion in 2012, the contribution of staff who are 

confident and well trained in loan assessment, as well as full 

implementation of the policies, procedures and guidelines 

of the Credit Bureau of Cambodia (CBC), which is a 

key factor that not only prevents clients from falling 

into indebtedness but also prevents Amret from having 

problems with loan clients. 

(Loan Outstanding) 

All value amounts are in million US$ 

Change in 2012 December December December 

in Amt. in Per. 

2012 2011 2010 

Key Indicators 

Total Loan Portfolio 50.03 51% 148.83 98.80 66.65 

Portfolio SC 9.61 23% 

50.68 41.07 37.92 

Loan Portfolio IC in Total 40.42 70% 

98.15 57.73 28.71 

Loan Portfolio ICBO in Total 15.81 54% 

44.96 29.15 14.58 

Loan Portfolio ICBO in Riel 1.52 21% 

8.85 7.33 5.57 

Loan Portfolio ICBO in US$ 14.29 65% 

36.11 21.82 9.01 

Loan Portfolio ICFO in Total 23.89 86% 

51.75 27.86 13.78 

Loan Portfolio ICFO in Riel 1.31 79% 

2.96 1.65 1.03 

Loan Portfolio ICFO in US$ 22.59 86% 

48.79 26.20 12.75 

Loan Bio digester in Total (0.16) -23% 

0.54 0.70 0.37 

Loan Bio digester in Riel - - 

- - 0.16 

Loan Bio digester in US$ (0.16) -23% 

0.54 0.70 0.21 

Loan to Staff in Total 0.88 4,490% 

0.90 0.02 - 

Loan to Staff in Riel (0.00) - 

- 0.00 - 

Loan to Staff in US$ 0.88 4,495% 

0.90 0.02 - 


18


Outreach 

As in 2011, in terms of borrowers Amret Co. Ltd grew 12%, mostly due to the growth of individual borrowers. The 

amount of group loan product borrowers is still huge (73%) compared to individual loan (27%). Even though the growth 

of individual loan was faster than group loan, Amret Co. Ltd is still focused on small loans and semi-urban areas operations. 

For more detail, please see table below. 

KEY INDICATORS 

Change in 2012 

in Amt. in Per. 

December December December 

2012 2011 2010 

Total Number of Borrowers 32,593 12% 299,507 266,914 238,535 

Number of SC Borrowers 13,812 7% 218,411 204,599 196,884 

Total Number of IC Borrowers 18,781 30% 81,096 62,315 41,651 

Number of ICBO Borrowers 9,832 24% 50,928 41,096 27,658 

Number of ICFO Borrowers 8,698 45% 28,119 19,421 13,322 

Number of Bio-digester Borrowers (105) -6% 1,677 1,782 671 

Number of Staff Loan Borrowers 356 2,225% 372 16 - 

19 




4 Saving Mobilization 

After 3 years, Amret has fully and successfully launched the 

three types of deposit products, namely Happy Account, 

Goal Account, and Wealthy Account. From year to year, 

Amret is well-known and trusted by the public through 

its good customer service and professional customer 

relationship. As a result by this 2012, Amret collected 

deposits up to KHR 333,538 million (about US$ 83.5 

million) with the growth rate 96.11% compared to the same 

period of last year, and the number of Customer Accounts 

has grown by 168% to 110,558 accounts, which makes 

Amret the leading MFI in terms of Deposit Collection. 

However, Amret still continues strengthening its customer 

service and relationship quality to increase good customer 

experience despite its current success. 

transfer transactions at Amret. As the result, there were 

about 40,913 transactions within 12 months with the 

growth rate of 227%, which accumulated the transferred 

amount within Amret to KHR 62,335 million. 

6 Other Financial Products 

With its continuous development, Amret has been 

developing various new financial services in response to its 

customers’ needs. Standing Order is another differentiated 

service that allows an individual or institutional client to 

transfer funds regularly from their account to another 

account within a branch or across branches in Amret. The 

service is able to help clients to reduce their time consuming 

for their transfer transaction. 

5 Inter-Branch Money Transfer (Local Money Treansfer) 

Since the launch of Inter-Branch Money Transfer (IMT) 

in 2010, this service really helps our customers to do their 

Officer of customer service of Amret at Prey Veng Provincial Branch 

Display activity of products and services of Amret to its clients in Kampong Speu province 


20

Clients were paying interest to credit officers of Amret at Siem Reap provincial office

Risk Management 

1 Risk Management Framework 

To uphold an environment with low tolerance to risk, 

Amret has been trying hard to build a strong risk 

management culture by providing specific training and 

coaching, including refresher courses to all staff. Control 

integration is in place, ready and on-going in all policies and 

working procedures. Moreover, clear duties setting out the 

risk management framework is very important to push the 

implementation of Risk Management. 

Risk Management Framework 

To achieve the audit committee’s mission, internal audit 

is a key player which provides independent assurance and 

consulting activity designed to add value and improve 

Amret’s operations and accomplish its objectives by 

bringing a systematic, disciplined approach to evaluate and 

improve the effectiveness of risk management, internal 

control, and governance processes. In addition, internal 

auditing helps senior management in improving Amret’s 

effectiveness and efficiency by providing insight and 

recommendations based on analyses and assessments of 

data and business processes. 

In 2012, the Internal Audit Department conducted 208 

assessments including 45 assessments related to units’ 

activities, 24 assessments related to provincial offices 

activities, 139 assessments related to branches activities and 

10,395 clients. After conducting internal audit assessments, 

results showed a decrease in mistakes, improvement of 

internal control activities and staff ’s strong commitment to 

comply with Amret’s policies and procedures. 

Risk Oversight Committee 

The Risk Oversight Committee is established and chaired 

by an independent board member. Its mission is to oversee 

all types of risks that occur internally and externally 

in operation, credit and finance and to ensure that the 

practices and procedures are effective for risk identification 

and management, and comply with internal guidelines and 

external requirements. 

Before each meeting of the Board of Directors, the Risk 

Oversight Committee members have a meeting to verify 

the completeness of the identified risks by each committee. 

In 2012 the significant risks and mitigation tools were 

analysed and approved by the Board of Directors. 

Audit Committee 

The Audit Committee is established and chaired by an 

independent board member. Its mission is to ensure the 

effectiveness and efficiency of internal audit tasks and 

the internal control system, and ensure the adequacy of 

reporting and decision tools. 

The Audit Committee meets at least four times a year 

(quarterly meeting) in March, June, September and 

December and otherwise as required. The Internal Audit 

Department reports directly to the committee on finding 

issues and provides recommendations for management 

improvement. 

2 Credit Risk Management 

The objective of credit risk management is to minimize 

credit loss to a manageable level. Thus, Portfolio at 

Risk (PAR>30) takes into account the value of all loans 

outstanding that have one or more instalments of principal 

or interest past due more than 30 days. This item includes 

the entire unpaid principal balance, including both past due 

and future instalments. 

As a result, the overall performance of the portfolio 

quality was very good within 2012. At the end of 2012, 

the portfolio at risk (PAR) was 0.11%. The good quality of 

portfolio comes from both internal and external factors. 

Management has improved credit policy/procedures 

and clear working instructions, pushed internal control 

implementation at all staff levels, and linked staff 

motivation with loan portfolio quality such as incentive 

and staff promotion in order to strengthen the portfolio 

quality. Furthermore, the increase in employment, business 

activities and income generation during 2012 has been 

favourable to the repayment capacity of the clients. These 

are key contributing factors to the success in maintaining 

good Portfolio quality in Amret. 


22

Risk Management (Cont.) 

3 Operational Risk Management 

This refers to the risk of loss arising from the potential 

for inadequate information systems, technology 

failures, breaches in internal controls, fraud, unforeseen 

catastrophes, or other operational problems that may result 

in unexpected losses or reputation problems. Operational 

risk exists in all products and business activities. 

In order to reduce any human error, system failures 

and inadequate procedures and controls as above, the 

Operational Risk Committee is established under the 

supervision of the Risk Oversight Committee and chaired 

by the Head of Risk Management and Compliance. The 

mission of the Operational Risk Committee is to monitor 

operational risks in order to achieve an optimal balance 

between risks and return. 

During the year of 2012, the Operational Risk Committee 

approved the risk identified by the risk owner or risk taking 

unit with the mitigation plan for implementation in 2013, 

and no significant operational risk actually occurred during 

the year. In addition, to implement the internal control 

system more effectively and efficiently, the committee has 

decided to create the new position of internal controller, 

which will be in place at provincial and branch level. 

Amret also has the business continuity plan (BCP) and Biz 

Manual Guidance (BMG) in place in order to ensure that 

Amret will have enough capacity to continue the business 

to meet the short and long term objectives when a disaster 

or other disruptive event occurs; and to sustain customers’ 

confidence by maintaining a good public image. Amret’s 

BCP & BMG have been set with a clear framework, and 

policies and procedures. 

4 Financial Risk Management 

Financial Risk is managed and controlled by the Asset 

and Liability Committee (ALCO) with the primary goal to 

evaluate, monitor and approve practices relating to risk due 

to imbalances in the capital structure in order to optimize 

return whilst ensuring that appropriate levels of liquidity 

are maintained. 

In the strategy year 2012, Amret increased loan portfolio 

in US$ by looking for funding in KHR and US$ from 

both deposit products and borrowing from lenders to 

finance the demand in operation, and tried to reduce the 

exposure of mismatch between asset and liability in US$ 

by reducing the hedge tools of back-to-back loan and 

currency swap with local banks; following this mechanism 

Amret managed both currency risk and foreign exchange 

risk with efficiency and effectiveness. In terms of liquidity 

management, Amret had been actively engaging and 

implementing internal existing tools. 

5 Rating 

Amret has been assigned the rating by an international 

rating agency called Microfinanza. In the years 2012 and 

2011, Amret was rated as A- with a stable outlook which 

means that Amret has strong operations and performance 

with a sound strategic vision and planning. 

Risks also are well identified, monitored and managed with 

minimum exposure to short term and foreseeable risks. In 

the year 2010, Amret had been rated by M-CRIL as α-with 

positive outlook which means that the company has a 

strong capacity to meet its financial obligations, has very 

good operations, and is stable even if it were to be affected 

by major internal or external events. 

In conclusion, Amret has obtained the same rating grade 

for the credit and financial rating for the last three years, 

2010-2012, while maintaining excellent quality. 

23 



Our Clients 

Chum Sok, 62 years old, is a former village chief living 

in Dak Por village, Svay Kravan commune, Chbarmorn 

city, Kampong Speu province. He has 9 children - 8 sons 

and one daughter. His children are all married and have 

their own occupations such as being workers and farmers 

(planting rice, cabbage and cucumber). Moreover, he owns 

a rice processing plant and a house. 

Chum Sok is a symbolic client of Amret among all clients 

who are using Amret services. Uncle Sok has borrowed 

credit from Amret since 2000 and the first credit he 

borrowed was solidarity credit with an amount of 100,000 

Riel (one hundred thousand Riel only) for a 12-month 

period. For the management of his borrowed credit, Mr. 

Chum Sok uses the credit to buy fertilizer, convolvulus 

seeds, cucumber seeds, cabbage seeds, for example. The 

clear and accurate plan of uncle Chum Sok brings him and 

his family success in his career and continuous expansion 

of his career up to today. Uncle Chum Sok has already 

borrowed solidarity credit from Amret for 13 cycles until 

today. And at the present time, uncle Chum Sok has become 

a member of solidarity credit committee of Amret. 

After borrowing credit from Amret for farming, he can 

expand his career better and better uninterruptedly. In 

addition, he has a rice field and farm to grow rice and other 

crops too; for example, watermelon. The great effort and 

saving of uncle Chum Sok allows him to be able to buy a 

plot of rice field with 9 hectares in the area for sharing to 

with children and furthermore he has built a rice processing 

plant in his house area for processing his own rice and 

villagers’ rice for profit. Meanwhile, his annual income 

gives him a profit of 10,000,000 Riels and 20 tonnes of 

rice per year. 

The result from his clear and accurate business plan and 

high commitment as well as the support from Amret shows 

that uncle Chum Sok is the symbolic client of Amret in 

Dak Por village and in other provinces in Cambodia as well. 

“Unexpected success that gives a better living to me today 

makes me very proud, and I would like to express my 

great thankfulness to Amret for lending me credit. This 

contributes largely to the facilitating of the difficulties 

I have faced”, uncle Chum Sok said. Besides, Mr. Chum 

Sok returns a small amount of money remaining from his 

expense for saving in Amret. 

Uncle Chum Sok in an interview related his success factors by using capital from Amret 


24

Branch Network 

Cambodia Map 

Branch Network and Operating Areas 

December 

2012 

December 

2011 

December 

2010 

Number of Operating Provinces * 18 16 15 

Number of Operating Districts 133 112 100 

Number of Branch and Mini-Branch 99 70 53 

Number of Village Associations (VA) 6,268 5,004 3,818 

25 



Staff, Staff Development & International Visiting Program (IVP) 

Amret Staff 

The number of Amret staff grew by 31.44% (1,693) and 

43.23% (2,425) in 2011 and 2012 respectively. There are 

755 female staff representing 31.13% of total staff. Amret 

promotes gender balance through its recruitment policy. 

The turnover rate in 2012 is recorded at an acceptable rate 

of 7.77%. 

In 2012, Amret reviewed benefits and compensation as 

recognition to the efforts and contributions of its human 

resources at all levels. 

Capacity Development 

Training is one of the most important key factors that produce 

the human capital to strengthen the institution to achieve long 

term goals. The Training Department has put in efforts to 

develop different programs and to provide the training for 

both new entry and existing staff on various courses as well 

as coaching, mentoring and refreshment courses. 

To enhance and keep one step ahead of human capital 

in Amret, In 2012, Training Department (TD) trained 

1,639 staff in total, which consists of 635 newly recruited 

staff and 462 promoted staff, and coached 542 staff. The 

frequency of attending the training is 6 times per staff. 

In addition to the internal training within the company, 

Amret also provides external training to staff to build more 

competencies for both current operational development 

and future career development. In 2012, Amret sent its 

staff to 241 local short training courses, 6 international 

short training courses, and other important training 

courses such as English, ACCA, CFA, BBA, and MBA. 

Amret also sends its potential staff for overseas Study 

Tours to learn about the successful best practices from 

other Microfinance Institutions and Banks. In 2012, Amret 

hosted an International Visiting Program (IVP) to two 

groups of the visitors coming from Japan and Palestine. 

CEO of Amret talked to the study tour students from Japan at Amret 

Customer services training activity to front line staff 

Staff and managers of Amret were taking part in the 22 nd 

annual seminar at Koh Pich convention and exhibition center 

The visitor of Bhutan teamwork for National Biogas Project at Amret 


26

Head of provincial office distributed presents to youth volunteers of Red Cross of Sihanouk province 

after they had joined the environmental cleaning activity with Amret staff, people and local authorities in Sihanouk ville

Social & Environmental Responsibility 

OVERVIEW OF AMRET SOCIAL PERFORMANCE MANAGEMENT 

1. Poverty Targeting and Monitoring 

Poverty Line Definition 

Poverty Assessment/measurement 

Poverty Tracking 

SOCIAL PERFORMANGE TOOLS AND MECHANISMS 

To adopt the NPL of Cambodia 

To apply PPI, short term plan 

To re-apply PPI after 2 years, short term plan 

- 

Social Performance Reporting 

- Annually to MIX and as requested by Lender 

- Developing standards for SPM reports 

2. Customer Care and Product Enhancement 

Client Protection Principle 

CP Policy was approved and integrated CP Principle into existing 

policy and training program 

Customer Satisfaction and Exit Survey Conduct annually 

Client Feedback System 

Multi-channel reporting such as Suggestion Box, Call Center, face to 

face meetings with staff and Branch Manager 

Market Research for product development Conduct upon request from Board, Management & related departments 

Non-Financial Service 

Collaborating with Government Officers to conduct training of 

agriculture techniques for clients and community 

3. Social Responsibility 

3.1. Social Responsibility to Staff 

Access to training 

One month training/induction/orientation for newcomers, HIPO 

Program, In-house training and outside training 

Other policies 

Whistle Blowing Policy, Introduced HR Business Partner at Branch Levels 

3.2. Social Responsibility to Community and Environment 

E&S Policy and Procedure 

To Rollout E&S policy and procedure 

Bio-digester Loan LO: 2,156,281,754 and number of clients: 1,677 

Social Activities 

Amret actively contributes and partners with other development sectors 

A- Social Performance Management within Amret 

With a strong motivation and support by BoD, the Social Performance Management Project was developed and given 

approval by BoD for the years 2013-2015. The main objective of this project is to ensure that Amret will have an appropriate 

working system on SPM to avoid deviation from its social mission and Social Responsibility, and to build more capacity 

to assist its clients and community to reach social goals. The Social Performance Management Committee (SPMC) was 

formed in June 2011 and chaired by the CEO with related management staff to be in charge of designing and monitoring 

implementation of Amret’s SPM Framework with social responsibility to the environment, clients, employees as well as 

communities with respect to Amret’s Vision, Mission, and Social Objective. 

B- Social Responsibility 

The Social Responsibility is an important dimension to improve Social Performance Management (SPM). 

Social Responsibility toward client: 

• Client Protection Principle: : MFIs pay a lot of attention to protect their clients. To effectively apply principles, 

MFIs need to integrate their operations. For instance, staff training on CPP would be more effective when it is linked 

to the introduction of new products, policies or procedures. Amret had endorsed the Smart Campaign in December 

2010 to commit to the implementation of the core of CPP in the operation and get the tools and resources that we 

need to build sound lending practices to help our institution to deliver transparent, respectful and prudent financial 

services to all clients. Amret had an assessment made by Micorfinanza Srl to increase awareness and to understand 


28

Social & Environmental Responsibility (Cont.) 

our strengths and weaknesses in term of CPP as well 

as to come up with a plan for addressing the identified 

gaps and to enhance business practices around client 

protection. Consequently, Amret’s CPP Policy was 

developed and got approval from SPMC. 

• Clients’ Exit and Satisfaction Survey: Amret 

conducts client’s satisfaction surveys to respond to 

current market demand and enhance new products in 

order to follow up the evolution of clients’ needs as 

well as to assess or identify complaints from clients, 

and find out the real reason behind them leaving. Our 

client’s satisfaction survey in 2012 focused more on 

long-life/existing products such as Solidarity Credit 

(SC), Individual Credit (IC), and Savings & Inter 

Branch Money Transfer. The result of the survey 

showed the positive trend of product features for 

Amret’s Loan Product, Savings and Inter Branch 

Money Transfer increasing from year to year while the 

level of satisfaction is improving. 

• Clients’ Capacity Building on Agriculture: Amret 

has established a Non-Financial Service Program for 

building up our clients’ and communities’ capacities. 

This project is working closely by collaborating 

with Government Officers to conduct training of 

agricultural techniques. This project has become 

popular among our clients and communities as well 

as local authorities. As a result in 2012, approximately 

50 courses were delivered by close collaboration with 

District Agriculture Offices with participation above 

1,200. 

Social Responsibility toward staff: 

• Staff Capacity: : Amret takes into account staff 

capacity building by providing core basic training 

courses, such as training for internal policies and 

procedures, financial products and business ethics to 

all new recruits in order to enhance working capacity 

independently. Amret also sends the staff to attend 

international training workshops and study tours to 

get real practical experiences from other financial 

institutions. 

• Working Environment: Amret has a corporate 

culture, Corporate Values, Human Resource Policies 

and a Sexual Harassment Policy to ensure all staff are 

treated fairly, and to enforce a common relationship 

among staff. Moreover, Amret pays attention to the 

health and safety of all staff. It has a full time nurse to 

be responsible for first aid and medical treatment and 

to coordinate insurance claims for employees. 

• HIPO Program: Amret has formed this program for 

selecting the highest potential members of Amret’s 

staff to build up their capacity for promotion to higher 

positions. It will encourage and motivate staff to be 

more willing to work for Amret and also contribute 

to the national development by building up the 

human resources for the future. Until now, Amret has 

4 generations with 72 potential high-flying staff (10 

females), and most of them have more opportunities 

to accelerate to a higher position within the institution. 

• Staff Loan: Amret designed this product for 

the purpose of motivating existing staff through 

provision of the loan with low interest rate to support 

their personal purpose or project (housing, vehicles, 

wedding, etc.) at better conditions than commercial 

loans with competitors. 

Social Responsibility to community and environment: 

• Environment Management: Amret has a formal 

strict written policy and procedure with integration 

of “Exclusion List” in accordance with international 

conventions, national legislations and regulations 

prohibiting provision of credit to any activities harming 

the environment and community. Additionally, Amret 

integrates the clients’ S&E data into system to be 

monthly tracked for following up clients’ compliance. 

• Bio-Digester Loan: : Amret has cooperated with NBP 

to provide a particular loan known as “Bio-Digester 

Loan”. Amret designed this product for individuals 

intending to improve their living standard through 

building a bio-digester plant to reduce expenses in 

their household and to improve the environment by 

serving the reduction of deforestation, loss of natural 

resources and greenhouse gas emissions “Methane 

(CH4)”. As of 30 December 2012, Amret provided 

bio-digester loans to roughly 1,600 borrowers with 

loan portfolio of more than US$ 0.5 million dollars in 

18 provinces. 

• Amret has partnered with WaterSHED Cambodia 

since early 2011 by financing communities in Kampong 

Speu and Kampong Cham to buy latrines and water 

filters as part of promoting the Water and Sanitation 

Hygiene initiative in the community. 

• Volunteer and Internship Program: established 

to provide an opportunity to volunteers and interns 

to get real work experience with Amret while they’re 

29 



Social & Environmental Responsibility (Cont.) 

also at the same time assisting and providing support 

to various departments in the company. In 2012, 311 

people including 106 volunteers and 205 interns were 

recruited. 

• Amret actively contributed in social activities in 2012 

such as a city clean-up by collecting rubbish in markets 

and gardens in Preah Sihanouk province, offering 

stationery to 530 orphans and 300 printed books for 

using in Samdech Ouv Junior High School, donating 

a fund of 22,297,100 Riels to Kantha Bopha Hospital, 

contributing funds to CRC for the Safety Road 

Project, to KYA’s The 7th Angkor Youth Camp 2012, 

celebrating International Children’s Day at Prey Chor 

District and Closing Farmer Field School at Kampong 

Trabek District. 

CEO and management staff represented all staff of Amret offered 

their staff contributions to Kantha Bopha Phnom Penh 

DCEO of Amret welcomed Mrs. Vice Governor of Sihanouk ville 

before starting the environmental cleaning activity in Sihanouk ville 

Exercise, to which Amret had distributed 

T-shirts and hats, at Olympic Stadium 

The activity of local authorities of Sihanouk ville and Amret’s staff 

in the environmental cleaning activity in Sihanouk ville 


30

The activity of Amret’s staff in a meeting with clients at a mango orchard in Kien Svay district

FINANCIAL STATEMENTS FOR THE YEAR ENDED 

Directors’ Report 

33 

Independent auditor’s report 

35 

Balance Sheet 

37 

Income Statement 

38 

Statement Of Changes In Equity 

39 

Cash Flow Statement 

40 

Notes To The Financial Statements 

42 

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

* The Appendix does not form part of the audited financial statements. 

Microfinance Institution “Amret” Annual Report 2012 32


The Board of Directors (the Directors) hereby submits 

their report together with the audited financial statements 

of Amret Co., Ltd. (the Company) for the year ended 31 

December 2012. 

PRINCIPAL ACTIVITIES 

The principal activity of the Company is to provide credit 

to local customers through its head office in Phnom 

Penh and its various provincial and district offices in the 

Kingdom of Cambodia. 

On 22 January 2009, the Company received a licence from 

the National Bank of Cambodia (the Central Bank) to 

conduct a deposit-taking business. 

FINANCIAL PERFORMANCE 

The financial performance for the year ended 31 December 

2012 is set out in the income statement on page 38. 

On 2 July 2012, dividends amounting to KHR3,678,037 

thousand were declared and paid on 24 July 2012 in 

respect of the Company’s net profit for the year ended 31 

December 2011 (2011: KHR 3,003,830 thousand for 2010 

net profit). 

BAD AND DOUBTFUL LOANS 

Before the financial statements of the Company were 

drawn up, the Directors took reasonable steps to ascertain 

that actions had been taken in relation to the writing off 

of bad loans and the making of allowance for bad and 

doubtful loans, and satisfied themselves that all known bad 

loans had been written off and adequate allowance had 

been made for bad and doubtful loans. 

At the date of this report, the Directors are not aware of 

any circumstances which would render the amount written 

off for bad loans or the amount of allowance for bad and 

doubtful loans in the financial statements of the Company 

inadequate to any material extent. 

ASSETS 

Before the financial statements of the Company were 

drawn up, the Directors took reasonable steps to ensure 

that any assets that were unlikely to be realised in the 

ordinary course of business at their values as shown in 

the accounting records of the Company have been written 

down to an amount which they might be expected to realise. 


any circumstances which would render the values attributed 

to the assets in the financial statements of the Company 

misleading in any material respect. 

VALUATION METHODS 


any circumstances which have arisen which would render 

adherence to the existing method of valuation of assets 

and liabilities in the financial statements of the Company 

misleading or inappropriate in any material respect. 

CONTINGENT AND OTHER LIABILITIES 

At the date of this report, there is: 

(a) no charge on the assets of the Company that has 

arisen since the end of the year that secures the 

liabilities of any other person; or 

(b) no contingent liability in respect of the Company 

that has arisen since the end of the year other than 

in the ordinary course of business. 

No contingent or other liability of the Company has 

become enforceable, or is likely to become enforceable 

within the period of 12 months after the end of the year 

that, in the opinion of the Directors, will or may have a 

material effect on the ability of the Company to meet its 

obligations as and when they become due. 

CHANGE OF CIRCUMSTANCES 


any circumstances not otherwise dealt with in this report 

or the financial statements of the Company which would 

render any amount stated in the financial statements 

misleading in any material respect. 

ITEMS OF AN UNUSUAL NATURE 

There were no items, transactions or events of a material 

and unusual nature that, in the opinion of the Directors, 

materially affected the financial performance of the 

Company for the year ended 31 December 2012. 

There has not arisen in the interval between the end of the 

year and the date of this report any item, transaction or 

event of a material and unusual nature likely, in the opinion 

of the Directors, to affect substantially the results of the 

operations of the Company for the current year. 

THE BOARD OF DIRECTORS 

The members of the Board of Directors during the year 

and as at the date of this report are: 

• Dr. Claude Fernand Germain Falgon 

(appointed on 22 February 2005) 

• Mr. Chea Phalarin 

(appointed on 10 July 2000) 

Chairman 

Director 

33 




• Mr. Guillaume, Jean Jacques Lepoutre 

(appointed on 22 March 2011) 

• Mrs. Amanda Jane Hannan 

(appointed on 29 June 2012) 

• Mr. Angus Poston 

(appointed on 25 December 2012) 

• Mr. Jean Claude Leullier 


• Mr. Kay Lot 


• Mr. Emerson Manny Mar 

(resigned on 31 March 2012) 

Director 

Independent Director 





• Mr. Steven Constantin Duchatelle 

(resigned on 29 June 2012) Independent Director 

• Ms. Emma Lim Sandrino 

(resigned on 18 September 2012) 

DIRECTORS’ BENEFITS 

Director 

During and at the end of the year, no arrangement existed, 

to which the Company was a party, with the object of 

enabling the Directors of the Company to acquire benefits 

by means of the acquisition of shares in or debentures of 

the Company or any other body corporate. 

No Director of the Company has received or become 

entitled to receive any benefit by reason of a contract made 

by the Company or with a firm of which the Director is 

a member, or with a Company in which the Director has 

a material financial interest other than as disclosed in the 

financial statements. 

RESPONSIBILITIES OF THE BOARD OF 

DIRECTORS IN RESPECT OF THE FINANCIAL 

STATEMENTS 

The Directors are responsible for ensuring that the financial 

statements are properly drawn up so as to present fairly, in 

all material respects, the financial position of the Company 

as at 31 December 2012 and its financial performance and 

cash flows for the year then ended. In preparing these 

financial statements, the Directors are required to: 

the interest of fair presentation, ensure that this 

has been appropriately disclosed, explained and 

quantified in the financial statements; 

iii) maintain adequate accounting records and an 

effective system of internal controls; 

iv) prepare the financial statements on a going 

concern basis unless it is inappropriate to assume 

that the Company will continue operations in the 

foreseeable future; and 

v) effectively control and direct the Company and 

be involved in all material decisions affecting its 

operations and performance and ascertain that 

such matters have been properly reflected in the 

financial statements. 

The Directors confirm that the Company has complied 

with the above requirements in preparing the financial 

statements. 

APPROVAL OF THE FINANCIAL STATEMENTS 

The accompanying financial statements, together with the 

notes thereto, present fairly, in all material respects, the 

financial position of the Company as at 31 December 2012 

and its financial performance and cash flows for the year 

then ended in accordance with the guidelines issued by the 

Central Bank and Cambodian Accounting Standards, were 

approved by the Board of Directors. 

Signed in accordance with a resolution of the Board of 

Directors. 

____________________________ 

Mr. CHEA Phalarin 

CEO, Amret 

Phnom Penh, Kingdom of Cambodia 

Date: 25 March 2013 

i) adopt appropriate accounting policies that are 

supported by reasonable and prudent judgements 

and estimates, and then apply them consistently; 

ii) comply with the disclosure requirements and 

the guidelines issued by the Central Bank and 

Cambodian Accounting Standards or, if there 

has been any departure from such standards in 


34

Independent auditor’s report 

TO THE SHAREHOLDERS OF 

AMRET CO., LTD. 

We have audited the accompanying financial statements 

of Amret Co., Ltd. (the Company), which comprise the 

balance sheet as at 31 December 2012, and the income 

statement, the statement of changes in equity and the cash 

flow statement for the year then ended, and a summary 

of significant accounting policies and other explanatory 

notes. 

MANAGEMENT’S RESPONSIBILITIES FOR 

THE FINANCIAL STATEMENTS 

Management is responsible for the preparation and fair 

presentation of these financial statements in accordance 

with the guidelines issued by the Central Bank and 

Cambodian Accounting Standards, and for such internal 

control as management determines is necessary to enable 

the preparation of financial statements that are free from 

material misstatement, whether due to fraud or error. 

AUDITOR’S RESPONSIBILITY 

Our responsibility is to express an opinion on these 

financial statements based on our audit. We conducted 

our audit in accordance with Cambodian International 

Standards on Auditing. Those standards require that we 

comply with ethical requirements and plan and perform 

the audit to obtain reasonable assurance about whether the 

financial statements are free from material misstatement. 

OPINION 

In our opinion, the financial statements present fairly, in all 

material respects, the financial position of the Company 

as at 31 December 2012, and its financial performance 

and cash flows for the year then ended in accordance with 

the guidelines issued by the Central Bank and Cambodian 

Accounting Standards. 

For PricewaterhouseCoopers (Cambodia) Ltd. 

By KUY Lim 

Partner 

Phnom Penh, Kingdom of Cambodia 

Date: 25 March 2013 

An audit involves performing procedures to obtain 

audit evidence about the amounts and disclosures in the 

financial statements. The procedures selected depend on 

the auditor’s judgement, including assessment of the risks 

of material misstatement of the financial statements, 

whether due to fraud or error. In making those risk 

assessments, the auditor considers internal control relevant 

to the entity’s preparation and fair presentation of the 

financial statements in order to design audit procedures 

that are appropriate in the circumstances, but not for the 

purpose of expressing an opinion on the effectiveness 

of the entity’s internal control. An audit also includes 

evaluating the appropriateness of accounting policies used 

and the reasonableness of accounting estimates made by 

management, as well as evaluating the overall presentation 

of the financial statements. 

We believe that the audit evidence we have obtained is 

sufficient and appropriate to provide a basis for our audit 

opinion. 

35 



Amret’s clients were checking their crops in Morng Russey district, Battambang province

Balance Sheet 

As At 31 December 2012 

Note 

KHR ‘000 

2012 2011 

US$ 

(Unaudited) 

KHR ‘000 

US$ 

(Unaudited) 

ASSETS 

Cash on hand 4 21,792,412 5,454,922 15,162,034 3,753,908 

Balances with the Central Bank 5 50,651,919 12,678,828 27,393,203 6,782,175 

Balances with banks 6 12,583,483 3,149,808 21,303,590 5,274,471 

Loans to customers 7 593,926,239 148,667,394 398,769,471 98,729,753 

Investment in Credit Bureau 99,875 25,000 100,975 25,000 

Other assets 8 15,328,108 3,836,823 11,563,530 2,862,969 

Property and equipment 9 7,703,116 1,928,189 4,330,699 1,072,221 

Intangible assets 10 1,802,650 451,227 1,522,331 376,908 

Deferred tax assets 11 1,654,114 414,046 1,125,914 278,761 

Total assets 705,541,916 176,606,237 481,271,747 119,156,166 

LIABILITIES AND EQUITY 

LIABILITIES 

Deposits from customers 12 333,538,173 83,488,905 170,073,552 42,107,837 

Bank overdraft 13 - - 12,344,756 3,056,390 

Borrowings 14 200,621,853 50,218,236 163,345,080 40,441,961 

Subordinated debt 15 4,032,971 1,009,505 4,032,971 998,507 

Other liabilities 16 19,058,520 4,770,594 12,238,198 3,030,007 

Current income tax liabilities 11 6,521,114 1,632,319 5,222,122 1,292,924 

Provident fund obligations 17 8,558,027 2,142,184 6,247,135 1,546,703 

Total liabilities 572,330,658 143,261,743 373,503,814 92,474,329 

EQUITY 

Share capital 18 11,379,120 2,848,340 11,379,120 2,817,311 

Share premium 5,535,835 1,385,691 5,535,835 1,370,595 

Retained earnings 105,866,760 26,499,815 81,967,871 20,294,100 

Statutory reserve 18 2,285,868 572,182 2,285,868 565,949 

Currency risk reserve 18 2,383,890 596,718 2,184,559 540,866 

Legal reserve 18 1,137,912 284,834 1,137,912 281,731 

Capital strengthening reserve 18 4,621,873 1,156,914 3,276,768 811,285 

Total equity 133,211,258 33,344,494 107,767,933 26,681,837 

Total liabilities and equity 705,541,916 176,606,237 481,271,747 119,156,166 

The accompanying notes on pages 42 to 75 form an integral part of these financial statements. 

37 



Income Statement 

For The Year Ended 31 December 2012 


Note KHR ‘000 US$ 

(Unaudited) 

KHR ‘000 

US$ 

(Unaudited) 

Interest income 19 148,217,908 37,100,853 106,447,771 26,354,982 

Interest expense 20 (33,025,313) (8,266,662) (22,730,164) (5,627,671) 

Net interest income 115,192,595 28,834,191 83,717,607 20,727,311 

(Provision)/reversal of provision 

for bad and doubtful loans 7 (556,254) (139,238) 64,599 15,994 

Net interest income after provision for bad 

and doubtful loans 114,636,341 28,694,953 83,782,206 20,743,305 

Other income 21 2,011,642 503,540 2,343,330 580,176 

Personnel expenses 22 (42,712,345) (10,691,451) (30,679,193) (7,595,740) 

Depreciation and amortisation expenses 23 (3,907,819) (978,177) (2,344,776) (580,534) 

General and administrative expenses 24 (33,652,794) (8,423,728) 3,398,891) 5,793,239) 

Net foreign exchange gains 466,306 116,722 299,227 74,085 

Operating profit 36,841,331 9,221,859 30,001,903 7,428,053 

Grant income - - 496,003 122,803 

Profit before income tax 36,841,331 9,221,859 30,497,906 7,550,856 

Income tax expense 11 (7,719,969) (1,932,408) (5,977,658) (1,479,985) 

Profit for the year 29,121,362 7,289,451 24,520,248 6,070,871 


Front line staff of Amret were sharing their good experiences with each other in customer services 


38

Statement Of Changes In Equity 


Share capital 

KHR’000 

Share premium 

KHR’000 

Statutory 

reserves 

KHR’000 

Currency 

risk reserve 

KHR’000 

Legal reserve 

KHR’000 

Capital 

strengthening 

reserve 

KHR’000 

Retained 

earnings 

KHR’000 

Total 

KHR’000 

As at 1 January 2011 11,379,120 5,535,835 2,285,868 1,892,982 1,137,912 1,916,848 62,102,950 86,251,515 

Transfers to reserves - - - 291,577 - 1,359,920 (1,651,497) - 

Dividends paid (Note 28) - - - - - - (3,003,830) (3,003,830) 

Profit for the year - - - - - - 24,520,248 24,520,248 

As at 31 December 2011 11,379,120 5,535,835 2,285,868 2,184,559 1,137,912 3,276,768 81,967,871 107,767,933 

US$ equivalent (Unaudited) 2,817,311 1,370,595 565,949 540,866 281,731 811,285 20,294,100 26,681,837 

As at 1 January 2012 11,379,120 5,535,835 2,285,868 2,184,559 1,137,912 3,276,768 81,967,871 107,767,933 

Transfers to reserves - - - 199,331 - 1,345,105 (1,544,436) - 

Dividends paid (Note 28) - - - - - - (3,678,037) (3,678,037) 

Profit for the year - - - - - - 29,121,362 29,121,362 

As at 31 December 2012 11,379,120 5,535,835 2,285,868 2,383,890 1,137,912 4,621,873 105,866,760 133,211,258 

US$ equivalent (Unaudited) 2,848,340 1,385,691 572,182 596,718 284,834 1,156,914 26,499,815 33,344,494 


39 



Cash Flow Statement 


Note KHR ‘000 US$ 

(Unaudited) 


KHR ‘000 

US$ 

(Unaudited) 

Cash flows from operating activities 

Cash used in operations 25 (98,512,136) (24,658,857) (63,912,496) (15,823,840) 

Interest received 145,762,705 36,486,284 105,029,395 26,003,812 

Interest paid (28,485,875) (7,130,382) (20,517,068) (5,079,740) 

Income tax paid (6,949,177) (1,739,469) (5,461,500) (1,352,191) 

Grant received - - 496,003 122,803 

Provident fund paid 17 (135,030) (33,800) (136,583) (33,699) 

Net cash from operating activities 11,680,487 2,923,776 15,497,751 3,837,145 

Cash flows from investing activities 

Purchases of property and equipment (7,501,927) (1,877,829) (5,468,511) (1,353,927) 

Proceeds from sales of property and equipment 22,353 5,595 92,660 22,941 

Investment in Credit Bureau - - (100,975) (25,000) 

Net cash used in investing activities (7,479,574) (1,872,234) (5,476,826) (1,355,986) 

Cash flows from financing activities 

Proceeds from borrowings 95,317,000 23,859,074 69,373,000 17,175,786 

Repayments on borrowings (68,925,189) (17,252,863) (82,164,132) (20,342,692) 

Dividends paid 28 (3,678,037) (920,660) (3,003,830) (743,706) 

Net cash from/(used in) financing activities 22,713,774 5,685,551 (15,794,962) (3,910,612) 

Net increase/(decrease) in cash and cash 

equivalents 

26,914,687 6,737,093 (5,774,037) (1,429,453) 

Cash and cash equivalents at the beginning of 

the year 

32,177,970 7,966,816 38,345,378 9,460,986 

Currency translation differences (1,458,694) (277,385) (393,371) (64,717) 

Cash and cash equivalents at the end of the year 4 57,633,963 14,426,524 32,177,970 7,966,816 



40

Amret’s clients were picking peppercorns in Ponhea Kraek district, Kampong Cham province

Notes To The Financial Statements 


1. BACKGROUND INFORMATION 

Amret Co., Ltd. (the Company) was initially established 

in 1991 as an experimental project by the French NGO 

Groupe de Recherche et d’ Echanges Technologiques 

(GRET). All assets, liabilities and reserves of the Project 

were transferred to the Company on 1 July 2000. 

The Company has become a licensed micro-finance 

institution (MFI) after being duly registered with the 

Ministry of Commerce as a private limited liability 

company under the registration number Co. 820/00E 

dated 10 July 2000. In 2001, the Company received its 

first MFI license from the National Bank of Cambodia 

(the Central Bank). On 27 April 2007, the Central Bank 

renewed its license to conduct micro-finance business 

for an indefinite period following the Central Bank’s 

Prakas No. B7-06-209 dated 13 September 2006. 

On 22 January 2009, the Central Bank also granted 

the Company the license to become a micro-finance 

deposit-taking institution. 

The Company’s main activities are to provide microfinance 

services to the economically active low income 

population of Cambodia through its head office in 

Phnom Penh and its various branches in the Kingdom 

of Cambodia. 

The Company was incorporated and registered in the 

Kingdom of Cambodia. The Company’s head office is 

located at No. 35BA – 35BB – 35BC, E0 – E4, Street 

169, Sangkat Vealvong, Khan 7 Makara, Phnom Penh, 

the Kingdom of Cambodia. The Company has 11 

provincial offices, 70 branch offices, 26 mini-branch 

offices and 3 post offices, located in 18 provinces. 

As at 31 December 2012, the Company had 2,425 

employees (31 December 2011: 1,693 employees). 

The financial statements were authorised for issue by 

the Board of Directors on 22 March 2013. 

2. SUMMARY OF SIGNIFICANT ACCOUNTING 

POLICIES 

The principal accounting policies adopted in the 

preparation of the financial statements are set out 

below. These policies have been consistently applied to 

all the years presented, unless otherwise stated. 

2.1 Basis of preparation 

The Company’s financial statements have been prepared 

in accordance with Cambodian Accounting Standards 

(CAS) and the guidelines issued by the Central Bank. 

In applying CAS, the Company also applies CFRS 7: 

Financial Instruments: Disclosures. The accounting 

principles applied may differ from generally accepted 

accounting principles adopted in other countries and 

jurisdictions. The financial statements are not intended 

to present the financial position, financial performance 

and cash flows in accordance with jurisdictions other 

than the Kingdom of Cambodia. Consequently, these 

financial statements are addressed only to those who 

are informed about Cambodian accounting principles, 

procedures and practices. 

The financial statements have been prepared in Khmer 

Riel (KHR) under the historical cost convention. 

The preparation of financial statements in accordance 

with the guidelines issued by the Central Bank and CAS 

requires the use of estimates and assumptions that 

affect the reported amounts of assets and liabilities and 

disclosure of contingent assets and liabilities at the date 

of the financial statements and the reported amounts 

of revenues and expenses during the reporting period. 

Although these estimates are based on management’s best 

knowledge of current events and actions, actual results 

may ultimately differ from those estimates. The areas 

involving a higher degree of judgement or complexity, or 

areas where assumptions and estimates are significant to 

the financial statements are disclosed in Note 3. 

2.2 Change in accounting framework 

On 28 August 2009, the National Accounting Council 

(NAC) of the Ministry of Economy and Finance 

(MoEF) announced the adoption of Cambodian 

International Financial Reporting Standards (CIFRS) 

which are based on all standards published by 

International Accounting Standard Board including 

other interpretation and amendment that may occur 

in any circumstances to each standard by adding 

“Cambodian”. Public accountable entities shall prepare 

their financial statements in accordance with CIFRS for 

accounting period beginning on or after 1 January 2012. 

The NAC of the MoEF through Circular No. 086 

MoEF.NAC dated 30 July 2012 approves Banking and 

financial institution to delay adoption of CIFRS until 

the periods beginning on or after 1 January 2016. 

The first financial statement of the Company which 

will be prepared under CIFRS is the year ending 31 

December 2016. CAS, the current accounting standard 

used, is different to CIFRS in many areas. Hence, the 

adoption of CIFRS will have significant impact on the 

financial statements of the Company. 


42

Notes To The Financial Statements (Cont.) 


2.3 Foreign currency translation 

(a) 

Functional and presentation currency 

Items included in the financial statements are 

measured using the currency of the primary economic 

environment in which the entity operates (the 

functional currency). The financial statements are 

presented in KHR, which is the Company’s functional 

and presentation currency. 

The translation of KHR into United States dollars 

(US$) is solely for management’s use only and is based 

on the official exchange rate regulated by the Central 

Bank as at the reporting date, which was US$ 1 equal 

to KHR 3,995 (31 December 2011: US$ 1 equal to 

KHR 4,039). Such translation amounts are unaudited 

and should not be construed as representations that 

the KHR amounts represent, or have been or could be 

converted into US$ at that or any other rate. 

(b) 

Transactions and balances 

Transactions in currencies other than KHR, 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 than KHR are recognised in the 

income statement. 

2.4 Basis of aggregation 

The financial statements comprise the financial 

statements of the head office and the branch offices 

after the elimination of all significant inter-branch 

balances and transactions. 

2.5 Cash and cash equivalents 

For the purposes of the cash flow statement, cash 

and cash equivalents comprise cash on hand, the nonrestricted 

balances with the Central Bank, and balances 

with other banks, with original maturities of three 

months or less from the date of acquisition. 

2.6 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 previously written-off loans 

is recognised in the income statement. 

2.7 Provision for bad and doubtful loans 

The Company follows the mandatory credit 

classification and provisioning as required by the Prakas 

B7-02-186 dated 13 September 2002. The Prakas 

requires microfinance institutions to classify their 

loan portfolio into the following four classes based on 

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: 

In addition, the Company makes a general risk 

provision by providing for the excess of the portfolio 

Classification Number of days past due Provision 

Short-term loans (less than one year) 

Standard Less than 30 days 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 loans (more than one year) 

Standard Less than 30 days 0% 

Substandard Equal to or more than 30 days 10% 

Doubtful Equal to or more than 180 days 30% 

Loss Equal to or more than 360 days 100% 

43 





at risk (past due loans for 30 days or more) which is 

over than the mandatory specific level of provisioning 

as required by the Central Bank above. Management 

believes that this more reasonably reflect the provision 

necessary to absorb risks relating to problems in 

the macroeconomic environment, natural disasters, 

and widespread deterioration in rural household 

income, which would render customers incapable of 

reimbursing their outstanding loans. 

2.8 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 recognised as a separate asset, as appropriate, 

only when it is possible that future economic benefits 

associated with the item will flow to the Company 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 basis as 

follows: 

Office improvements 20% 

Office equipment 25% 

Information technology (IT) equipment 50% 

Furniture and fittings 25% 

Motor vehicles 25% 

Gains or losses on disposals are determined by 

comparing proceeds with carrying amount and 

recognised in the income statement. 

The carrying amounts of property and equipment are 

reviewed for impairment when there is an indication 

that the assets might be impaired. Impairment is 

measured by comparing the carrying values of the 

assets with their recoverable amounts. An impairment 

loss is charged to the income statement immediately. 

2.9 Intangible assets 

Intangible assets consist of computer software and 

license fee and are stated at cost less accumulated 

amortisation and accumulated impairment losses. 

Acquired computer software is capitalised on the basis 

of the cost incurred to acquire the specific software 

and bring it into use. Intangible assets are amortised 

over their estimated useful lives of ten years using the 

straight-line method. 

2.10 Impairment of non-financial assets 

Assets that have an indefinite useful life are not subject 

to amortisation and are tested annually for impairment. 

Assets that are subject to amortisation or depreciation 

are reviewed for impairment whenever events or 

changes in circumstances indicate that the carrying 

amount may not be recoverable. An impairment loss 

is recognised for the amount by which the asset’s 

carrying amount exceeds its recoverable amount. The 

recoverable amount is the higher of an asset’s fair value 

less costs to sell and value in use. For the purposes of 

assessing impairment, assets are grouped at the lowest 

levels for which there are separately identified cash 

flows (cash-generating units). 

2.11 Borrowings 

Borrowings are stated at the amount of the principal 

outstanding. Fees paid on the establishment of 

borrowing facilities amortised on straight line basis 

over the period of each borrowing facilities to the 

income statement. 

2.12 Subordinated debt 

Subordinated debts are treated as part of the Company’s 

liabilities and included in the Company’s net worth 

computation under the Central Bank’s regulations. 

Foreign exchange differences on the subordinated 

debts of the Company are taken through the income 

statement. 

2.13 Provisions 

Provisions are recognised when the Company has a 

present legal or 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 

likelihood that an outflow will be required in settlement 

is determined by considering the class of obligations as 

a whole. A provision is recognised even if the likelihood 

of an outflow with respect to any one item included in 

the same class of obligations may be small. 

Provisions are re-measured at the present value of 

the expenditures expected to be required to settle the 

obligation using a pre-tax rate that reflects current 


44



market assessments of the time value of money and 

the risks specific to the obligation. The increase in the 

provision due to the passage of time is recognised as 

interest expense. 

2.14 Provident fund obligations 

The Company provides for provident fund obligations 

which are conditional on the number of years which 

Number of working years 

employee remains in service for the Company up to 

retirement age and the completion of a minimum 

service period (Note 3(c)). 

The employee is entitled for each year the benefit which 

is equal to the percentage of December salary of each 

fiscal year within the minimum service period below: 

Percentage (%) of December salary of each fiscal year 

Within 5 years 100 

After 5 years but not more than 10 years 120 

More than 10 years 130 

No separate fund is maintained i.e. there is no separate interest-bearing bank account or any other asset for the fund. The 

Company adjusts the past service provident fund obligation at an estimated inflation rate determined by management. 

This adjustment is done at December of each year of service. The liability recognised in the balance sheet in respect 

of these provident fund obligations will be fully paid to the employee upon retirement age, or upon termination of 

employment with the Company if employee resigns before retirement age, they are entitled to the following portion of 

provident fund: 

Number of working years 

Percentage (%) of accumulative provident fund 

Within 3 years - 



More than 12 years 75 

2.15 Interest income and expense 

Interest income on loans to customers, balances with the 

Central Bank and balances with banks are recognised on 

an accrual basis. Where a loan becomes non-performing, 

the recording of interest income on loans to customers 

is suspended until it is realised on a cash basis. 

Interest expenses on deposits from customers and 

borrowings are recognised on an accrual basis. 

2.16 Fee and commission income 

The Company earns fee and commission income from 

a diverse range of services it provides to its customers, 

mainly from loan processing for the National 

Biodigeter Programme (NBP) which is supported 

by Nederlandse Financierings-Maatschappij Voor 

Ontwikkelingslanden. N.V. (FMO). It is recognised 

when the loans are disbursed to customers. 

2.17 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. 

2.18 Current and deferred income tax 

The current income tax charge is calculated on the 

basis of the tax law enacted or substantively enacted 

at the reporting date in Cambodia where the Company 

operates and generates taxable income. 

Deferred tax is provided using the balance sheet liability 

method, providing for temporary differences between 

the carrying amounts of assets and liabilities for 

financial reporting purposes and the amounts used for 

taxation purposes. Deferred tax is measured at the tax 

rates expected to be applied to temporary differences 

when they reverse, based on laws that have been 

enacted or substantively enacted by the reporting date. 

Deferred tax assets and liabilities are offset if there is a 

legally enforceable right to offset current tax liabilities 

45 





and assets and they relate to income taxes levied by the 

same tax authority on the same taxable entity. 

A deferred tax asset is recognised only to the extent that 

it is probable that future taxable profits will be available 

against which temporary difference can be utilised. 

Deferred tax assets are reviewed at each reporting 

date and are reduced to the extent that it is no longer 

probable that the related tax benefit will be realised. 

2.19 Rounding of amounts 

The presenting amounts in the financial statements 

have been rounded off to the nearest thousand KHR 

and US$ amounts, respectively. 

3. CRITICAL ACCOUNTING ESTIMATES, 

ASSUMPTIONS AND JUDGEMENTS 

The Company makes estimates, assumptions and 

judgements that affect the reported amounts of assets 

and liabilities. Estimates, assumptions and judgements 

are continually evaluated and are based on historical 

experience and other factors, including expectations of 

future events that are believed to be reasonable under 

the circumstances. 

(a) 

Impairment losses on loans to customers 

The Company is required to follow the mandatory 

credit classification and provisioning in accordance 

with Prakas No. B7-02-186 dated 13 September 2002 

on the classification and provisioning for bad and 

doubtful debts. The Central Bank requires microfinance 

institutions to classify their loan portfolios into four 

classes and ensure that the minimum mandatory 

level of specific provision is made depending on the 

classification concerned and regardless of the assets 

(except for cash) pledged as collateral. For the purpose 

of loan classification, the Company is required to 

take into account the borrower’s historical payment 

experience and financial condition. 

In addition, the Company also makes a general risk 

provision by providing for any difference between 

100% of the portfolio at risk (past due loans for 

30 days or more) and the mandatory specific level 

of provisioning as required by the Central Bank. 

Management believes that this more reasonably 

reflect the provision necessary to absorb risks relating 

to problems in the macroeconomic environment, 

natural disasters, and widespread deterioration in rural 

household income, which would render customers 

incapable of reimbursing their outstanding loans. 

(b) 

Income tax 

Taxes are calculated on the basis of current 

interpretations of the tax regulations. However, these 

regulations are subject to periodic variation and the 

ultimate determination of tax expenses will be made 

following inspection by the tax authorities. 

Where the final tax outcome is different from the 

amounts that were initially recorded, such differences 

will impact the income tax and deferred tax provisions 

in the period in which such determination is made. 

(c) 

Provident fund obligations 

On an annual basis, the Company provides provident 

fund obligations equal to the specific percentage of 

December salary of each fiscal year, based on the number 

of years the employee had work for the Company. This 

benefit is accumulated from year to year. The Company 

adjusts the accumulated provident fund obligations by 

annual inflation rate and staff turnover rate. The annual 

inflation rate represents Cambodia actual average yearly 

inflation rate and staff turnover rate represents actual 

average staff resignation rate for the past three years, 

determined by management. This adjustment is done 

in December for each year of service (Note 17 and 22). 

The liability recognized in the balance sheet in respect 

of these provident fund obligations will be fully paid to 

the employee upon retirement age, or upon termination 

of employment with the Company. If employee resigns 

before retirement age, they are entitled to the specific 

portion of provident fund (Note 2.14). 

In accordance with CAS 37 (in the absence of 

equivalent International Accounting Standard 19), the 

provident fund obligations should be re-measured at 

the present value of the expenditures expected to be 

required to settle the obligation using a pre-tax rate that 

reflects current market assessments of the time value 

of money and the risks specific to the obligation. 

Management believes that the provident fund 

obligations liability to date is adequate. 

(d) 

Functional currency 

The Board of Directors considers the KHR the currency 

that most faithfully represents the economic effect of 

the underlying transactions, events and conditions. The 

KHR is the currency in which the Company measures 

its performance and reports its results, as well as the 

currency in which it receives subscriptions from and 

pays dividends to its shareholders. 




4. CASH ON HAND 

KHR’000 


US$ 

(Unaudited) 

KHR’000 

US$ 

(Unaudited) 

Branches 20,143,425 5,042,159 13,171,561 3,261,095 

Head office 1,648,987 412,763 1,990,473 492,813 

21,792,412 5,454,922 15,162,034 3,753,908 

For cash flow statement purposes, cash and cash equivalents comprise: 

KHR’000 


US$ 

(Unaudited) 

KHR’000 

US$ 

(Unaudited) 

Cash on hand 21,792,412 5,454,922 15,162,034 3,753,908 

Balances with the Central Bank (Note 5) 23,258,068 5,821,794 1,770,846 438,437 

Balances with banks (Note 6) 12,583,483 3,149,808 15,245,090 3,774,471 

57,633,963 14,426,524 32,177,970 7,966,816 

5. BALANCES WITH THE CENTRAL BANK 

KHR’000 


US$ 

(Unaudited) 

KHR’000 

US$ 

(Unaudited) 

Reserve deposit (ii) 26,255,939 6,572,200 12,367,445 3,062,007 

Fixed accounts - - 12,117,000 3,000,000 

Current accounts 23,258,068 5,821,794 1,770,846 438,437 

Statutory capital deposit (i) 1,137,912 284,834 1,137,912 281,731 

50,651,919 12,678,828 27,393,203 6,782,175 

(i) 

Statutory capital deposit 

In compliance with Prakas B7-07-163 dated 13 

December 2007 on the Licensing of Deposit-Taking 

Microfinance Institutions, the Company is required to 

maintain a statutory capital deposit with the Central 

Bank of 10% of registered capital. This deposit is 

refundable should the Company voluntarily liquidate 

and have no deposit liabilities. 

(ii) 

Reserve deposit 

The reserve deposit represents the minimum reserve 

requirement which is calculated at 8% of the total 

deposits from customers, as required by Prakas B7-07- 

163 on the Licensing of Deposit-Taking Microfinance 

Institutions. 

(iii) Interest rates 

Reserve deposit and current accounts are non-interest 

bearing. The statutory capital deposit and fixed account 

in US$ earns annual interest of 3% (2011: 3%) and 

ranging from 0.2% to 0.26% (2011: 0.2% to 0.26%) 

respectively. 

As at 31 December 2012, the fixed accounts balance is 

nil. 

47 





6. BALANCES WITH BANKS 

KHR’000 


US$ 

(Unaudited) 

KHR’000 

US$ 

(Unaudited) 

Current accounts 12,582,056 3,149,451 15,243,678 3,774,121 

Fixed accounts - - 6,058,500 1,500,000 

Savings accounts 1,427 357 1,412 350 

12,583,483 3,149,808 21,303,590 5,274,471 

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

as below: 


Fixed accounts 5% 5% 

Savings accounts 1.5% 1.5% 

7. LOANS TO CUSTOMERS 

KHR’000 


US$ 

(Unaudited) 

KHR’000 

US$ 

(Unaudited) 

Individual loans 388,516,955 97,250,802 233,090,120 57,709,859 

Solidarity loans 202,464,166 50,679,391 165,895,307 41,073,361 

Staff loans 3,598,282 900,696 79,263 19,624 

594,579,403 148,830,889 399,064,690 98,802,844 

Specific provision (211,029) (52,823) (178,096) (44,094) 

General provision (442,135) (110,672) (117,123) (28,997) 

Provision for bad and doubtful loans (653,164) (163,495) (295,219) (73,091) 

593,926,239 148,667,394 398,769,471 98,729,753 

(a) 

Provision for bad and doubtful loans 

The movements in provision for bad and doubtful loans to customers are as follows: 

KHR’000 


US$ 

(Unaudited) 

KHR’000 

US$ 

(Unaudited) 

At beginning of the year 295,219 73,091 1,714,545 424,497 

Provision/(reversal of provision) for the year 556,254 139,238 (64,599) (15,994) 

Bad debts written off (191,398) (47,909) (1,459,328) (361,309) 

Currency translation differences (6,911) (925) 104,601 25,897 

At end of the year 653,164 163,495 295,219 73,091 




(b) By economic sector 

KHR’000 


US$ 

(Unaudited) 

KHR’000 

US$ 

(Unaudited) 

Agriculture 311,019,978 77,852,310 222,523,080 55,093,607 

Trade and commerce 84,247,862 21,088,326 64,034,112 15,853,952 

Construction 54,399,901 13,616,996 31,173,193 7,718,047 

Transportation 38,933,171 9,745,475 21,069,169 5,216,432 

Services 38,268,410 9,579,076 21,149,592 5,236,344 

Other categories 67,710,081 16,948,706 39,115,544 9,684,462 

594,579,403 148,830,889 399,064,690 98,802,844 

(c) 

By relationship 

KHR’000 


US$ 

(Unaudited) 

KHR’000 

US$ 

(Unaudited) 

External customers 590,981,122 147,930,193 398,985,427 98,783,220 

Staff loans 3,598,281 900,696 79,263 19,624 

594,579,403 148,830,889 399,064,690 98,802,844 

(d) 

By location 

KHR’000 


US$ 

(Unaudited) 

KHR’000 

US$ 

(Unaudited) 

Kampong Cham 84,609,957 21,178,963 56,857,833 14,077,205 

Takeo 83,722,718 20,956,876 58,051,958 14,372,854 

Prey Veng 81,474,699 20,394,167 56,529,121 13,995,821 

Kampot 77,715,091 19,453,089 58,880,528 14,577,997 

Kandal 64,499,472 16,145,049 41,525,646 10,281,170 

Kampong Speu 64,235,246 16,078,910 45,827,107 11,346,152 

Phnom Penh 51,227,076 12,822,797 32,868,877 8,137,874 

Svay Rieng 46,247,716 11,576,400 30,523,430 7,557,175 

Siem Reap 27,440,213 6,868,639 13,180,701 3,263,358 

Battambang 12,161,028 3,044,062 4,819,489 1,193,238 

Head Office 789,279 197,567 - - 

Banteaymeanchey 456,908 114,370 - - 

594,579,403 148,830,889 399,064,690 98,802,844 

49 





(e) Analysis by security on performing and non-performing loans 

KHR’000 


US$ 

(Unaudited) 

KHR’000 

US$ 

(Unaudited) 

Standard loans: 

Secured 391,584,566 98,018,665 233,034,848 57,696,174 

Unsecured 202,341,672 50,648,729 165,734,623 41,033,578 

Sub-standard loans: 

Secured 281,889 70,560 77,008 19,066 

Unsecured 17,308 4,332 7,416 1,836 

Doubtful loans: 

Secured 238,731 59,757 41,818 10,354 

Unsecured 8,209 2,055 16,957 4,198 

Loss loans: 

Secured 10,051 2,516 15,709 3,889 

Unsecured 96,977 24,275 136,311 33,749 

594,579,403 148,830,889 399,064,690 98,802,844 

The secured loans are those loans secured in the form of land or house title receipts (which are not official land title 

deeds), as the Company generally issues loans to poor entrepreneurs in the provinces. 

(f) 

Interest rate 

The annual interest rates that were in operation during the year are as follows: 


Loan in KHR 30% - 42% 30% - 42% 

Loan in US$ 19.2% - 37.2% 19.2% - 42% 

Biogas loans 14.4% 14.4% 

Staff loans 14.4% 14.4% 

8. OTHER ASSETS 

KHR’000 


US$ 

(Unaudited) 

KHR’000 

US$ 

(Unaudited) 

Accrued interest receivable 8,939,770 2,237,740 6,484,567 1,605,488 

Prepaid expenses 4,744,731 1,187,667 2,943,943 728,879 

Deposits 145,404 36,396 730,967 180,977 

Advances to staff 947,638 237,206 655,589 162,315 

Accounts receivable 253,155 63,368 345,395 85,515 

Others 297,410 74,446 403,069 99,795 

15,328,108 3,836,823 11,563,530 2,862,969 


Amret’s clients were taking care of their animals in Ponhea Krek district, Kampong Cham province



9. PROPERTY AND EQUIPMENT 

Office 

improvements 

KHR’000 

Office 

equipments 

KHR’000 

IT 

equipments 

KHR’000 

Furniture and 

fittings 

KHR’000 

Motor vehicles 

KHR’000 

Total 

KHR’000 

At 1 January 2011 

Cost 972,867 1,173,189 1,781,645 381,117 2,746,239 7,055,057 

Accumulated depreciation (469,783) (664,217) (1,339,612) (243,165) (1,656,056) (4,372,833) 

Net book value 503,084 508,972 442,033 137,952 1,090,183 2,682,224 

Year ended 31 December 2011 

Opening net book value 503,084 508,972 442,033 137,952 1,090,183 2,682,224 

Additions 1,017,081 655,918 1,630,443 110,056 575,474 3,988,972 

Disposals - (3,321) (5,164) - (876) (9,361) 

Depreciation charge (472,744) (321,973) (1,046,475) (68,979) (420,965) (2,331,136) 

Closing net book value 1,047,421 839,596 1,020,837 179,029 1,243,816 4,330,699 

At 31 December 2011 

Cost 1,989,948 1,809,345 3,318,524 491,173 3,130,690 10,739,680 


Net book value 1,047,421 839,596 1,020,837 179,029 1,243,816 4,330,699 

Equivalent in US$ (Unaudited) 259,327 207,872 252,745 44,325 307,952 1,072,221 




Office 

improvements 

KHR’000 

Office equipments 

KHR’000 

IT equipments 

KHR’000 

Furniture and 

fittings 

KHR’000 

Motor vehicles 

KHR’000 

Total 

KHR’000 

At 1 January 2012 

Cost 1,989,948 1,809,345 3,318,524 491,173 3,130,690 10,739,680 


Net book value 1,047,421 839,596 1,020,837 179,029 1,243,816 4,330,699 

Year ended 31 December 2012 

Opening net book value 1,047,421 839,596 1,020,837 179,029 1,243,816 4,330,699 

Additions 2,072,441 1,354,371 2,490,806 193,728 1,000,454 7,111,800 

Disposals - (37,121) (2,394) - (2,061) (41,576) 

Depreciation charge (567,903) (605,217) (1,775,671) (113,263) (635,753) (3,697,807) 

Closing net book value 2,551,959 1,551,629 1,733,578 259,494 1,606,456 7,703,116 

At 31 December 2012 

Cost 4,062,389 3,012,844 5,674,956 681,996 4,000,939 17,433,124 

Accumulated depreciation (1,510,430) (1,461,215) (3,941,378) (422,502) (2,394,483) (9,730,008) 

Net book value 2,551,959 1,551,629 1,733,578 259,494 1,606,456 7,703,116 

Equivalent in US$ (Unaudited) 638,788 388,392 433,937 64,955 402,117 1,928,189 

53 





10. INTANGIBLE ASSETS 

Intangible assets consist of computer software cost and its license fee, with the details as follows: 

Computer software 

KHR’000 

Work in progress 

KHR’000 

Total 

KHR’000 

At 1 January 2011 

Cost 324,693 - 324,693 

Accumulated amortisation (285,455) - (285,455) 

Net book value 39,238 - 39,238 

Year ended 31 December 2011 

Opening net book value 39,238 - 39,238 

Additions 72,199 1,424,534 1,496,733 

Amortisation charge (13,640) - (13,640) 

Closing net book value 97,797 1,424,534 1,522,331 

At 31 December 2011 

Cost 396,892 1,424,534 1,821,426 


Net book value 97,797 1,424,534 1,522,331 

Equivalent in US$ (Unaudited) 24,213 352,695 376,908 

Year ended 31 December 2012 

Opening net book value 97,797 1,424,534 1,522,331 

Transfer 1,424,534 (1,424,534) - 

Additions 490,331 - 490,331 

Amortisation charge (210,012) - (210,012) 

Closing net book value 1,802,650 - 1,802,650 

At 31 December 2012 

Cost 2,311,757 - 2,311,757 


Net book value 1,802,650 - 1,802,650 

Equivalent in US$ (Unaudited) 451,227 - 451,227 

11. TAXATION 

(a) 

Deferred tax assets 

Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against 

current tax liabilities and when the deferred taxes relate to the same tax authority. The following amounts, determined 

after appropriate offsetting, are shown in the balance sheet: 




KHR’000 


US$ 

(Unaudited) 

KHR’000 

US$ 

(Unaudited) 

Deferred tax assets 1,800,032 450,571 1,222,470 302,667 

Deferred tax liabilities (145,918) (36,525) (96,556) (23,906) 

Deferred tax assets - net 1,654,114 414,046 1,125,914 278,761 

Deferred tax assets and liabilities mainly arise from the temporary differences resulting from provident fund obligations 

and depreciable assets respectively. 

The movements of net deferred tax assets are as follows: 

KHR’000 


US$ 

(Unaudited) 

KHR’000 

US$ 

(Unaudited) 

Balance at beginning of the year 1,125,914 278,761 787,203 194,227 

Credited to the income statement 528,200 132,215 338,711 83,860 

Currency translation differences - 3,070 - 674 

Balance at end of the year 1,654,114 414,046 1,125,914 278,761 

(b) 

Income tax expense 

KHR’000 

US$ 

(Unaudited) 


KHR’000 

US$ 

(Unaudited) 

Current tax: 

Current tax on profit for the year 7,874,543 1,971,100 6,316,369 1,563,845 

Adjustments in respect to prior years 373,626 93,523 - - 

Deferred tax: 

Origination and reversal of temporary 

differences (528,200) (132,215) (338,711) (83,860) 

7,719,969 1,932,408 5,977,658 1,479,985 

(i) 

Current income tax liabilities 

KHR’000 


US$ 

(Unaudited) 

KHR’000 

US$ 

(Unaudited) 

Balance at beginning of the year 5,222,122 1,292,924 4,367,253 1,077,536 

Charge during the year 7,874,543 1,971,100 6,316,369 1,563,845 

Income tax paid (6,575,551) (1,645,945) (5,461,500) (1,352,191) 

Currency translation differences - 14,240 - 3,734 

Balance at end of the year 6,521,114 1,632,319 5,222,122 1,292,924 

55 





(ii) 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: 

KHR’000 


US$ 

(Unaudited) 

KHR’000 

US$ 

(Unaudited) 


Tax calculated at a rate of 20% 7,368,266 1,844,372 6,099,581 1,510,171 

Expenses not deductible for tax purposes 506,277 126,728 216,788 53,674 

7,874,543 1,971,100 6,316,369 1,563,845 

In accordance with Cambodian tax laws, the Company has an obligation to pay corporate income tax in the form of 

either Tax on Profit at the rate of 20% of taxable profit or minimum tax at 1% of turnover, whichever is higher. 

iii) 

Other tax matters 

The Company’s tax returns are subject to periodic examination by the General Department of Taxation (GDT). Some 

areas of tax laws and regulations may be open to different interpretation; therefore, the tax amounts reported in the 

financial statements could be changed at a later date upon final determination by the GDT. 

12. DEPOSITS FROM CUSTOMERS 

KHR’000 


US$ 

(Unaudited) 

KHR’000 

US$ 

(Unaudited) 

Term deposits 238,706,071 59,751,207 146,689,421 36,318,252 

Savings deposits 94,832,102 23,737,698 23,384,131 5,789,585 

333,538,173 83,488,905 170,073,552 42,107,837 

Annual interest rates for deposits denominated in KHR and US$ are as follows: 


KHR US$ KHR US$ 

Savings deposits 4% - 4.5% 3.5% - 4% 4% - 5% 3.5% - 4.5% 

Term deposits-wealthy accounts 

1-month term 6% 4.25% 6% 4.5% 

3-month term 6.5% - 7% 4.25%-4.75% 6.5%-7% 4.5%-5% 

6-month term 7.5%-8.5% 4.75%-5.75% 7.5% - 8.5% 5.5% - 6% 

9-month term 8%-9.5% 5.75%-6.25% 8.% - 9.5% 6% - 6.5% 

12/18/24/36-month term 8.5%-10% 6.25%-7.25% 8.5% - 10% 6.5% - 7.5% 




Term deposits-goal accounts 

3 to 5-month term 6% - 6.5% 4.5% - 4.75% 6% - 6.5% 5% - 5.5% 

6 to 8-month term 6.5% - 7.5% 5% - 5.5% 6.5% - 7.5% 5.5% - 6.5% 

9 to 11-month term 7% - 8% 5.5% - 6% 7% - 8% 6% - 7% 

12 to 36-month term 7.5% - 8.5% 6% - 7% 7.5% - 8.5% 6.5% - 7.5% 

13. BANK OVERDRAFT 

This represents an overdraft facility maintained with a local bank. Annual interest rate on outstanding balance is 9.5% 

(2011: 11%) and on unutilised balance of 0.5% (2011: 0.5%). 

As at 31 December 2012, bank overdraft balance is nil. 

14. BORROWINGS 

KHR’000 


US$ 

(Unaudited) 

KHR’000 

US$ 

(Unaudited) 

Instituto De Credito Oficial 38,431,564 9,619,916 38,854,857 9,619,920 

The OPEC Fund for 

International Development 33,291,663 8,333,332 6,282,891 1,555,557 

PlaNet Finance 26,966,238 6,749,997 16,156,000 4,000,000 

Global Microfinance Facility 19,974,991 4,999,998 20,195,000 5,000,000 

Triodos Investment Management 16,984,995 4,251,563 17,117,000 4,237,930 

FMO 16,100,749 4,030,225 5,702,332 1,411,818 

Oikocredit 15,580,000 3,899,875 6,560,000 1,624,164 

Microfinance Loan Obligations S.A 11,984,995 2,999,999 12,117,000 3,000,000 

Microfinance Enhancement Facility 11,984,995 2,999,999 - - 

Proparco 9,321,663 2,333,332 12,117,000 3,000,000 

The Central Bank - - 12,000,000 2,971,032 

BlueOrchard - - 8,078,000 2,000,000 

Norwegian Investment Fund for 

Developing Countries - - 4,126,000 1,021,540 

Alterfin - - 4,039,000 1,000,000 

200,621,853 50,218,236 163,345,080 40,441,961 

The borrowings bear interest at rates ranging from 4.65% to 13.37% (2011: 4.65% to 13.37%). None of the Company’s 

borrowings are secured. 

The Company has no defaults on principal, interest or redemption amounts. 

15. SUBORDINATED DEBT 

This resulted from the transfer of the credit fund, liabilities and reserves as at 30 June 2000 granted by Agence Française 

pour le Dévéloppement (AFD) to the Company. The terms and conditions of the subordinated debt agreement dated 

27 December 2000 between the MoEF and the Company are as follows: 

57 





The subordinated debt will not be repayable to the MoEF unless the Company ceases to provide credit to the rural 

population of Cambodia or unless it decides to repay all or part of the debt; and 

The debt is considered as “Tier II Capital” in the context of Prakas No. B7-00-006 issued by the Central Bank, and 

shall be included in computing the Company’s capital adequacy ratio. 

The Company pays an annual management fee of 0.5% of the subordinated debt on a pro-rata basis. 

16. OTHER LIABILITIES 

KHR’000 


US$ 

(Unaudited) 

KHR’000 

US$ 

(Unaudited) 

Accrued interest expense 10,408,445 2,605,368 5,869,007 1,453,084 

Accrued bonus/incentives 4,234,340 1,059,910 2,864,165 709,127 

Accrued commissions 2,115,393 529,510 1,836,805 454,767 

Accrued other operating expenses 1,685,022 421,783 1,137,985 281,749 

Withholding tax payable 309,619 77,502 317,802 78,683 

Payable to staff association 288,863 72,306 211,636 52,398 

Others 16,838 4,215 798 199 

19,058,520 4,770,594 12,238,198 3,030,007 

17. PROVIDENT FUND OBLIGATIONS 

KHR’000 


US$ 

(Unaudited) 

KHR’000 

US$ 

(Unaudited) 

Provident fund obligations 8,558,027 2,142,184 6,247,135 1,546,703 

The movements in the provision for provident fund obligations for the year are as follows: 

KHR’000 


US$ 

(Unaudited) 

KHR’000 

US$ 

(Unaudited) 

Balance at beginning of the year 6,247,135 1,546,703 4,970,726 1,226,431 

Additions during the year (Note 22) 2,445,922 612,245 1,412,992 349,837 

Payments during the year (135,030) (33,800) (136,583) (33,699) 

Currency translation differences - 17,036 - 4,134 

Balance at end of the year 8,558,027 2,142,184 6,247,135 1,546,703 




18. SHARE CAPITAL AND RESERVES 

Share capital 

KHR’000 


US$ 

(Unaudited) 

KHR’000 

US$ 

(Unaudited) 

Advans 5,055,120 1,265,361 3,618,960 896,004 

GRET 2,207,280 552,511 2,207,280 546,492 

Proparco 1,972,000 493,617 1,972,000 488,240 

FMO 1,436,160 359,489 1,436,160 355,573 

La Fayette Participations S.A.S 462,400 115,745 462,400 114,484 

Botta Co., Ltd 246,160 61,617 246,160 60,945 

Oikocredit - - 1,436,160 355,573 

11,379,120 2,848,340 11,379,120 2,817,311 

Ownership and number of shares are presented as below: 


Ownership Shares Ownership Shares 

Advans 45% 3,717 32% 2,661 

GRET 19% 1,623 19% 1,623 

Proparco 17% 1,450 17% 1,450 

FMO 13% 1,056 13% 1,056 

La Fayette Participations S.A.S 4% 340 4% 340 

Botta Co., Ltd 2% 181 2% 181 

Oikocredit - - 13% 1,056 

100% 8,367 100% 8,367 

The total authorised number of ordinary shares at year end was 8,367 shares (2011: 8,367 shares) with a par value of 

KHR 1,360 thousand (2011: KHR 1,360 thousand) per share. All issued shares are fully paid. 

Statutory reserve 

The statutory reserve was established on 1 July 2000 in accordance with fixed amount as stated in the Memorandum 

and Articles of Association (MAA) of the Company. This reserve is declared non-distributable. 

Currency risk reserve 

The currency risk reserve was established to cover the currency risk exposure of the Company originating from its 

operations. The reserve is calculated based on the rate of 2% of net open position between total assets and total 

liabilities denominated in US$. 

Legal reserve 

The legal reserve, as stated in the MAA, is maintained by allocating 5% of the Company’s annual net profit after 

deduction of prior years’ losses. This allocation shall cease when the total legal reserve reached 10% of the Company’s 

registered capital. 

59 





Capital strengthening reserve 

The capital strengthening reserve is maintained in accordance with the borrowing agreement with Instituto De Credito 

Oficial of the Kingdom of Spain. During the life of the borrowed funds, the Company, as a borrower, shall establish 

and keep a reserve fund for capital strengthening. The reserve is calculated at the rate of 3.5% of the outstanding 

borrowing as at the end of each financial year. The agreement will be matured on 4 March 2021. 

19. INTEREST INCOME 

KHR’000 


US$ 

(Unaudited) 

KHR’000 

US$ 

(Unaudited) 

Individual loans 78,657,499 19,688,986 46,482,395 11,508,392 

Solidarity loans 69,359,301 17,361,527 59,456,295 14,720,548 

Balances with the Central Bank and banks 201,108 50,340 509,081 126,042 

148,217,908 37,100,853 106,447,771 26,354,982 

20. INTEREST EXPENSES 

KHR’000 


US$ 

(Unaudited) 

KHR’000 

US$ 

(Unaudited) 

Deposits from customers 17,858,201 4,470,138 7,412,331 1,835,189 

Borrowings 15,146,947 3,791,476 15,297,668 3,787,489 

Subordinated debts 20,165 5,048 20,165 4,993 

33,025,313 8,266,662 22,730,164 5,627,671 

21. OTHER INCOME 

KHR’000 


US$ 

(Unaudited) 

KHR’000 

US$ 

(Unaudited) 

Bad loan recoveries 1,284,220 321,457 1,575,604 390,098 

Fees and commission income 557,615 139,578 515,813 127,708 

Penalty income 119,355 29,876 96,146 23,804 

(Loss)/gain on disposals of property and 

equipment (19,223) (4,812) 83,297 20,623 

Others income 69,675 17,441 72,470 17,943 

2,011,642 503,540 2,343,330 580,176 




22. PERSONNEL EXPENSES 

KHR’000 


US$ 

(Unaudited) 

KHR’000 

US$ 

(Unaudited) 

Salaries and wages 27,786,397 6,955,293 20,304,437 5,027,095 

Incentive expenses 7,631,999 1,910,388 4,611,391 1,141,716 

Employee training expenses 2,468,358 617,862 2,266,911 561,256 

Provident fund expenses (Note 17) 2,445,922 612,246 1,412,992 349,837 

Other employee benefits 2,064,645 516,808 1,152,057 285,233 

The Directors’ fees 288,276 72,159 490,164 121,358 

Medical expenses 26,748 6,695 15,099 3,738 

Health insurance expenses - - 426,142 105,507 

42,712,345 10,691,451 30,679,193 7,595,740 

23. DEPRECIATION AND AMORTISATION EXPENSES 

KHR’000 


US$ 

(Unaudited) 

KHR’000 

US$ 

(Unaudited) 

Depreciation expenses (Note 9) 3,697,807 925,608 2,331,136 577,157 

Amortisation expenses (Note 10) 210,012 52,569 13,640 3,377 

3,907,819 978,177 2,344,776 580,534 

Amret’s clients were counting money on the day of getting loan 

61 





24. GENERAL AND ADMINISTRATION EXPENSES 

KHR’000 


US$ 

(Unaudited) 

KHR’000 

US$ 

(Unaudited) 

Professional costs 5,459,304 1,366,534 2,689,727 665,939 

Fees and commission expenses 5,164,205 1,292,667 4,498,852 1,113,853 

Rental and utilities expenses 5,052,717 1,264,760 2,975,999 736,816 

Motor vehicle and running costs 4,351,352 1,089,199 3,230,002 799,703 

Business trip expenses 3,792,668 949,354 2,958,184 732,405 

Marketing and advertising costs 2,627,093 657,595 1,583,756 392,116 

Office supplies expenses 2,335,793 584,679 1,737,063 430,073 

Communication expenses 858,259 214,833 527,405 130,578 

Insurance expenses 674,075 168,730 130,061 32,201 

Printing expenses 601,221 150,493 496,558 122,941 

Repair and maintenances expenses 539,303 134,994 461,683 114,306 

Business and public relation expenses 375,896 94,092 391,347 96,892 

Bank charges 250,476 62,697 195,658 48,442 

Security expenses 150,604 37,698 862,356 213,508 

License and patent fees 97,609 24,433 72,409 17,927 

Others expenses 1,322,219 330,970 587,831 145,539 

33,652,794 8,423,728 23,398,891 5,793,239 

The activity of Amret’s staff in providing of presents (T-shirts of Amret) to Loan Group Leader at Kampong Chhang Province 




25. CASH USED IN OPERATIONS 

KHR’000 


US$ 

(Unaudited) 

KHR’000 

US$ 

(Unaudited) 


Adjustments for: 

Provision/(reversal of provision) for bad 

and doubtful loans (Note 7) 556,254 139,238 (64,599) (15,994) 

Depreciation and amortisation (Note 23) 3,907,819 978,177 2,344,776 580,534 

(Loss)/gain on disposals of property and 

equipment 19,223 4,812 (83,297) (20,623) 

Provident fund expenses (Note 17) 2,445,922 612,245 1,412,992 349,837 

Net interest income and expenses (115,192,595) (28,834,190) (83,717,607) (20,727,311) 

Grant income - - (496,003) (122,803) 

Operating profit before changes in operating 

assets and liabilities (71,422,046) (17,877,859) (50,105,832) (12,405,504) 

Changes in operating assets and liabilities 

Loans to customers (195,713,022) (48,989,492) (130,300,717) (32,260,638) 

Balances with the Central Bank (13,888,494) (3,476,469) (7,988,776) (1,977,909) 

Balances with banks 18,175,500 4,549,562 13,235,250 3,276,863 

Other assets (1,309,375) (327,753) (3,094,142) (766,066) 


Other liabilities 2,180,680 545,852 5,828,022 1,442,937 

Cash used in operations (98,512,136) (24,658,857) (63,912,496) (15,823,840) 

26. RELATED PARTY TRANSACTIONS AND BALANCES 

The Company entered into a number of transactions with related parties in the normal course of business. The volumes of 

related party transactions, outstanding balances at the year end, and related expense and income for the year are as follows: 

(a) 

Related-party transactions 

KHR’000 


US$ 

(Unaudited) 

KHR’000 

US$ 

(Unaudited) 


Fee and related expenses 288,276 72,159 490,164 121,358 

Shareholders 

Interest expense 3,875,916 970,192 3,217,264 796,550 

Grant income - - 60,502 14,979 

Consultant fee expenses 87,201 21,828 - - 

Entity related to Board of Directors 

Consultant fee expenses 1,259,249 315,206 1,248,847 309,197 

63 





(b) Loans to and deposits from Directors, key management personnel and shareholders 

KHR’000 


US$ 

(Unaudited) 

KHR’000 

US$ 

(Unaudited) 

Directors and key management 

Deposits a 2,209,869 553,159 683,480 169,220 

Loans b 617,784 154,639 - - 

Shareholders 

Borrowings from: 

FMO c 16,100,748 4,030,225 5,702,332 1,411,818 

Oikocredit d 15,580,000 3,899,875 6,560,000 1,624,164 

Proparco e 9,321,663 2,333,332 12,117,000 3,000,000 

41,002,411 10,263,432 24,379,332 6,035,982 

a. Deposits from related party have the same term and annual interest rate to deposit from customers as described in 

Note 12. 

b. Loans to related party have a 2 to 4-year term with the annual interest rate of 14.4%. 

c. Borrowings from FMO represent a 3-year term borrowing maturing on 14 April 2017 with the annual interest rate 

of 4.65% and a 7-year term borrowing maturing on 15 April 2015 with the annual interest rate of 10.73%. 

d. Borrowings from Oikocredit represent a 3-year term borrowing maturing on 14 February 2015 with the annual 

interest rate of 12.21% and a 3-year term borrowing maturing on 28 December 2013 with the annual interest rate 

of 11.76%. 

e. Borrowing from Propaco has a 7.5-year team maturing on 31 March 2016 with the annual interest rate of 8.87%. 

(c) Key management compensation 

KHR’000 


US$ 

(Unaudited) 

KHR’000 

US$ 

(Unaudited) 

Salaries and other short-term employee benefits 2,383,757 596,685 1,798,413 445,262 

Provident fund expenses 222,029 55,577 172,468 42,701 

2,605,786 652,262 1,970,881 487,963 

27. COMMITMENTS 

Operating lease commitments 

These operating leases mainly relate to the office rental, which is renewable upon mutual agreement. Where the 

Company is the lessee, the future minimum lease payments under non-cancellable operating leases are as follows: 




KHR’000 


US$ 

(Unaudited) 

KHR’000 

US$ 

(Unaudited) 

No later than one year 3,848,100 963,229 3,019,646 747,622 

Later than one year and no later than five years 10,809,903 2,705,858 8,858,020 2,193,122 

Later than five years 3,526,978 882,848 3,891,801 963,556 

18,184,981 4,551,935 15,769,467 3,904,300 

28. DIVIDENDS 

On 2 July 2012, dividends amounting to KHR 3,678,037 thousand were declared and paid on 24 July 2012 in respect 

of the Company’s net profit for the year ended 31 December 2011 (2011: KHR 3,003,830 thousand from 2010 net 

profit). The dividends were approved by the Company’s shareholders. 

29. FINANCIAL RISK MANAGEMENT 

The Company’s activities expose it to a variety of financial risks: credit risk, market risk (including currency risk, 

interest rate risk and price risk), and liquidity risk. Taking risks is core to the financial business, and the operational 

risks are an inevitable consequence of being in business. 

29.1 Credit risk 

The Company takes on exposure to credit risk, which is the risk that counterparties will cause a financial loss to the 

Company by failing to discharge an obligation. Credit risk is the most important risk for the Company’s business. 

Credit exposure arises principally in lending activities that lead to loans to customers. There is also credit risk in offbalance 

sheet financial instruments, such as loan commitments. The credit risk management is carried out by the 

Company’s credit committee. 

The lending activities are guided by the Company’s credit policy to ensure that the overall objectives in the area of 

lending are achieved; i.e., that the loan portfolio is strong and healthy and credit risks are well diversified. The credit 

policy documents the lending policy, collateral policy, and credit approval processes and procedures implemented to 

ensure compliance with the Central Bank guidelines. 

(a) 

Credit risk measurement 

The Company assesses the probability of default of individual counterparties by focusing on borrowers’ forecast 

profit and cash flows. The credit committee is responsible for approving loans to customers. 

(b) 

Risk limit control and mitigation policies 

The Company operates and provides loans to individuals or small-medium enterprises within the Kingdom of 

Cambodia. The Company manages limits and controls the concentration of credit risk whenever it is identified. 

The Company 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 Company 

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) 

• Charges over business assets such as land and buildings; and 

• Cash in the form of margin deposits from bio-digester products 

65 





(c) Impairment and provisioning policies 

The Company is required to follow the mandatory credit classification and provisioning in accordance with Prakas B7-02- 

186 dated 13 September 2002 on loan classification and provisioning. The Central Bank requires microfinance institutions 

to classify their loan portfolio into four classes and ensure that the minimum mandatory level of specific provision is made 

depending on the classification concerned and regardless of the assets (except for cash) pledged as collateral, as follows: 

Percentage of provision 

Standard 0% 

Substandard 10% 

Doubtful 30% 

Loss 100% 

(d) 

Maximum exposure to credit risk before collateral held or other credit enhancements 

KHR’000 


US$ 

(Unaudited) 

KHR’000 

US$ 

(Unaudited) 

Credit exposure relating to on-balance sheet assets: 

Loans to customers (Note 7) 593,926,239 148,667,394 398,769,471 98,729,753 

Balances with banks (Note 6) 12,583,483 3,149,808 21,303,590 5,274,471 

Other assets 10,140,563 2,574,710 8,216,518 2,034,295 

616,650,285 154,391,912 428,289,579 106,038,519 

The above table represents a worst case scenario for credit risk exposure to the Company at 31 December 2012 and 

2011, without taking into account any collateral held or other credit enhancement attached. For on-balance sheet 

assets, the exposure set out above is based on net carrying amounts. 

As shown above, 96% of total maximum exposure is derived from loans to customers (2011: 93%). 

Management is confident in its ability to continue to control and sustain minimal credit risk exposure to the Company 

relating to its loans to customers on the following basis: 

• 99% of the loans in the portfolio are considered to be neither past due nor impaired (2011: 99%) 

• The Company has introduced a more stringent selection and collection process for granting loans to customers 

(e) 

Loans to customers 

Loans to customers are summarised as follows: 

KHR’000 


US$ 

(Unaudited) 

KHR’000 

US$ 

(Unaudited) 

Loans to customers neither past due nor impaired 593,094,208 148,459,126 398,448,177 98,650,205 

Loans to customers past due but not impaired 832,031 208,268 321,294 79,548 

Loans to customers individually impaired 653,164 163,495 295,219 73,091 

Gross 594,579,403 148,830,889 399,064,690 98,802,844 

Provision for bad and doubtful loans (653,164) (163,495) (295,219) (73,091) 

Net loans to customers 593,926,239 148,667,394 398,769,471 98,729,753 




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. The total provision for bad and doubtful loans is KHR 653,164 

thousand (2011: KHR 295,219 thousand), which represents the specific provision required by the Central Bank and 

additional provision for the loan losses. 

(i) Loans to customers neither past due nor impaired 

Loans to customers not past due are not considered impaired, unless other information is available to indicate the 

contrary. 

(ii) Loans to customers past due but not impaired 

Loans to customers less than 30 days past due are not considered impaired, unless other information is available to 

indicate the contrary. Gross amount of loans to customers that were past due but not impaired are as follows: 

KHR’000 


US$ 

(Unaudited) 

KHR’000 

US$ 

(Unaudited) 

Past due up to 30 days 832,031 208,268 321,294 79,548 

(iii) Loans to customers individually impaired 

In accordance with Prakas B7-02-186 dated 13 September 2002 on loan classification and provisioning, loans past 

due more than 30 days are considered impaired and a minimum level of specific provision for impairment is made 

depending on the classification concerned, unless other information is available to indicate the contrary. 

KHR’000 


US$ 

(Unaudited) 

KHR’000 

US$ 

(Unaudited) 

Past due 30-60 days 104,000 26,033 38,120 9,438 

Past due 60-90 days 95,442 23,890 36,426 9,019 

Past due 90-180 days 176,602 44,206 59,272 14,674 

Past due 180-360 days 277,120 69,366 161,401 39,960 

653,164 163,495 295,219 73,091 

Most of the customers’ collateral is in the form of land or house title receipts (which are not official land title deeds), 

as the Company generally issues loans to poor entrepreneurs in the provinces. The Company does not perform, 

during the period of loan, a revaluation of collateral either internally or externally. Since no legal official land title 

deeds have been obtained, no values have been ascribed to the collateral. Under the Central Bank’s regulations, the 

value of collateral is not taken into account when determining the impairment of loans to customers. 

(iv) Loans to customers renegotiated 

There were no renegotiated loans to customers at 31 December 2012 (2011: nil). 

(f) 

Repossessed collateral 

During the year ended 31 December 2012, the Company did not obtain any assets by taking possession of collateral 

held as security (2011: nil). 

67 





29.2 Market risk 

The Company takes on exposure to market risk, which is the risk that the fair value or future cash flows 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. 

(i) 

Foreign exchange risk 

The Company operates in Cambodia and transacts in KHR and US$, and is exposed to currency risks, primarily with 

respect to US$. 

Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities denominated in 

a currency that is not the Company’s functional currency. 

Management monitors its foreign exchange risk against functional currencies through monitoring the foreign exchange 

risk by using the absorbed risk of 20% of the net worth required by the Central Bank. Currently, the management 

maintains the currency swap with ANZ Royal Bank of US$500,000 (See Note 29.3) and the term deposits in US$ 

with Foreign Trade Bank and the Central Bank of US$1,500,000 and US$3,000,000 respectively to mitigate the 

foreign exchange risk. However, the Company does not hedge its foreign exchange risk exposure arising from future 

commercial transactions and recognised assets and liabilities by using forward contracts. The agreement with the 

central bank ended in March 2012 and the agreement with Foreign Trade Bank of Cambodia ended in June 2012. 

The table below summarises the Company’s exposure to foreign currency exchange rate risk at 31 December 2012. 

Included in the table are the Company’s financial instruments at carrying amount by currency in KHR’000 equivalent. 

KHR’000 equivalents 

KHR’000 US$ Total 

As at 31 December 2012 

Financial assets 

Cash on hand 10,216,189 11,576,223 21,792,412 

Balances with the Central Bank 11,613,721 11,644,347 23,258,068 

Balances with banks 3,530,469 9,053,014 12,583,483 

Loans to customers 249,451,407 344,474,832 593,926,239 

Other assets 5,663,245 4,477,318 10,140,563 

Total financial assets 280,475,031 381,225,734 661,700,765 

Financial liabilities 

Deposits from customers 99,805,063 233,733,110 333,538,173 

Borrowings 32,685,750 167,936,103 200,621,853 

Subordinated debt 4,032,971 - 4,032,971 

Other liabilities 10,595,815 8,136,248 18,732,063 

Total financial liabilities 147,119,599 409,805,461 556,925,060 

Net financial assets 133,355,432 (28,579,727) 104,775,705 




KHR’000 equivalents 

KHR’000 US$ Total 

As at 31 December 2011 


Cash on hand 6,041,532 9,120,502 15,162,034 

Balances with the Central Bank 1,595,515 12,292,331 13,887,846 

Balances with banks 2,968,749 18,334,841 21,303,590 

Loans to customers 201,971,757 196,797,714 398,769,471 

Other assets 4,533,246 3,683,272 8,216,518 

Total financial assets 217,110,799 240,228,660 457,339,459 


Deposits from customers 36,606,292 133,467,260 170,073,552 

Bank overdraft 9,496,364 2,848,392 12,344,756 

Borrowings 29,349,333 133,995,747 163,345,080 

Subordinated debt 4,032,971 - 4,032,971 

Other liabilities 6,144,534 5,775,064 11,919,598 

Total financial liabilities 85,629,494 276,086,463 361,715,957 

Net financial assets 131,481,305 (35,857,803) 95,623,502 

(ii) 

Price risk 

The Company 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 Company does not currently 

have a policy to manage its price risk. 

(iii) Interest rate risk 

Cash flows interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of 

changes in market interest rates. Fair value interest rate risk is the risk that the value of a financial instrument will 

fluctuate because of changes in market interest rates. Interest margins may increase as a result of changes but may 

reduce losses in the event that unexpected movements arise. The Company at this stage does not have a policy to set 

limits on the level of mismatch of interest rate repricing that may be undertaken; however, management regularly 

monitors the mismatch. 

The table below summarises the Company’s exposure to interest rate risks. It includes the Company’s financial 

instruments at the carrying amounts, categorised by the earlier of contractual repricing or maturity dates. 

69 



The activity of customer services of the front line staff of Amret at Baktouk Branch



Up to 

1 month 

KHR’000 

1 – 3 

months 

KHR’000 

3 – 12 

months 

KHR’000 

1 – 5 

years 

KHR’000 

Over 5 Years 

KHR’000 

Non-interest 

bearing 

KHR’000 

Total 

KHR’000 


Assets 

Cash on hand - - - - - 21,792,412 21,792,412 

Balances with the Central Bank - - - - - 23,258,068 23,258,068 

Balances with banks 1,427 - - - - 12,582,056 12,583,483 

Loans to customers 9,585,820 43,254,226 216,777,380 324,308,813 - - 593,926,239 

Other assets - - - - - 10,140,563 10,140,563 

Total financial assets 9,587,247 43,254,226 216,777,380 324,308,813 - 67,773,099 661,700,765 

Liabilities 

Deposits from customers 89,394,588 63,698,651 172,972,894 7,472,040 - - 333,538,173 

Borrowings - 13,557,216 25,724,338 128,092,421 33,247,878 - 200,621,853 

Subordinated debt - - - - - 4,032,971 - 4,032,971 

Other liabilities - - - - - 18,732,063 18,732,063 

Total financial liabilities 89,394,588 77,255,867 198,697,232 135,564,461 37,280,849 18,732,063 556,925,060 

Total interest repricing gap (79,807,341) (34,001,641) 18,080,148 188,744,352 (37,280,849) 49,041,036 104,775,705 


Total financial assets 39,066,846 70,781,022 249,057,934 73,284,259 - 25,149,398 457,339,459 

Total financial liabilities 54,456,759 46,145,500 136,138,711 76,138,496 36,916,893 11,919,598 361,715,957 

Total interest repricing gap (15,389,913) 24,635,522 112,919,223 (2,854,237) (36,916,893) 13,229,800 95,623,502 

71 





29.3 Liquidity risk 

Liquidity risk is the risk of the Company being unable to meet its payment obligations associated with its financial 

liabilities when they fall due and to replace funds when they are withdrawn. The consequence of this may be the failure 

to meet obligations to repay depositors and fulfil commitments to lend. 

(a) 

Liquidity risk management process 

The Company’s management monitors balance sheet liquidity and manages the concentration and profile of debt 

maturities. Monitoring and reporting take 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. Management monitors the movement 

of the main depositors and lenders and projections of their withdrawals. 

(b) 

Funding approach 

The Company’s main sources of liquidity arise from the shareholders’ paid-up capital, borrowings and customers’ 

deposits. The sources of liquidity are reviewed regularly through management’s review of the maturity of term 

deposits, key depositors, borrowings and subordinated debts. 

(c) 

Non-derivative cash flows 

The table on the following page presents the cash flows payable by the Company under non-derivative financial 

liabilities by remaining contractual maturities at the balance sheet date. The amounts disclosed in the table are the 

contractual undiscounted cash flows, whereas the Company manages the inherent liquidity risk based on the expected 

undiscounted cash flows. 

Clients were consulting about financial services with Amret’s staff at Praek Tamak Branch 




Up to 

1 month 

KHR’000 

1 – 3 

months 

KHR’000 

3 – 12 

months 

KHR’000 

1 – 5 

years 

KHR’000 

Over 5 

years 

KHR’000 

No fixed terms 

KHR’000 

Total 

KHR’000 


Liabilities 


Borrowings 702,577 16,437,350 37,266,835 150,176,188 36,668,435 - 241,251,385 

Subordinated debt - - - - 4,032,971 - 4,032,971 

Other liabilities 1,685,022 4,234,340 12,523,838 - 288,863 - 18,732,063 

Total financial liabilities 

(contractual maturing dates) 99,865,510 111,309,246 566,222,650 210,379,310 40,990,269 - 1,028,766,985 

Total financial assets 

(expected maturing dates) 115,401,904 107,150,643 398,887,933 167,673,037 - - 789,113,517 


Liabilities 


Bank overdraft - - 12,344,756 - - - 12,344,756 

Borrowings 12,135,426 15,225,084 32,050,013 87,345,981 56,251,036 - 203,007,540 

Subordinated debt - - - - 4,032,971 - 4,032,971 

Other liabilities 1,137,985 2,864,165 7,705,812 - 211,636 - 11,919,598 

Total financial liabilities 

(contractual maturing dates) 55,668,404 49,520,246 149,437,226 92,322,280 60,495,643 - 407,443,799 

Total financial assets 

(expected maturing dates) 62,607,607 73,604,147 288,007,386 150,394,952 - - 574,614,092 

73 





(d) Off-balance sheet items 

Operating lease commitments 

Where the Company is the lessee, the future minimum lease payments under non-cancellable operating leases are as 

disclosed in Note 27. 

Exchange rate swap 

On 25 July 2011, the Company has entered into the exchange rate swap agreement with ANZ Royal Bank to buy KHR 

2,050,000 thousand for US$500,000 on 29 July 2011 at the rate of KHR 4,100 and to sell KHR 2,101,952 thousand 

for US$500,000 on 30 January 2012 at the rate of KHR 4,203.90. 

29.4 Fair value of financial assets and liabilities 

(a) 

Financial instruments measured at fair value 

The Company does not have any financial instruments measured at fair value. 

(b) 

Financial instruments not measured at fair value 

The table below summarises the carrying amounts and fair value of those financial assets and liabilities not presented 

on the Company’s balance sheet at their fair value. 

Carrying value 


KHR’000 

2011 

KHR’000 

Fair value 


KHR’000 

2011 

KHR’000 


Balances with the Central Bank 23,258,068 13,887,846 23,258,068 13,887,846 

Balances with banks 12,583,483 21,303,590 12,583,483 21,303,590 

Loans to customers 593,926,239 398,769,471 593,926,239 398,769,471 

Other assets 10,140,563 8,216,518 10,140,563 8,216,518 

639,908,353 442,177,425 639,908,353 442,177,425 



Bank overdraft - 12,344,756 - 12,344,756 

Borrowings 200,621,853 163,345,080 200,621,853 163,345,080 

Subordinated debt 4,032,971 4,032,971 4,032,971 4,032,971 

Other liabilities 18,732,063 11,919,598 18,732,063 11,919,598 

556,925,060 361,715,957 556,925,060 361,715,957 

i. Balances with the Central Bank 

Balances with the Central Bank include current accounts and fixed deposits. The fair value of balances with the Central 

Bank approximates the carrying amount. 

ii. 

Balances with banks 

Balances with banks include non-interest bearing current accounts, savings deposits and fixed deposits. The fair value 

of balances with banks approximates the carrying amount. 




iii. Loans to customers 

Loans to customers are net of provision for bad and doubtful loans and their carrying value approximates fair value. 

The provision for bad and doubtful loans is made under the requirements of the Central Bank’s Prakas. 

iv. 

Deposits from customers and borrowings 

The fair value of deposits from customers approximates the carrying amount. The fair value of deposits from 

customers with no stated maturities is the amount repayable on demand. 

The fair value of fixed interest-bearing deposits and borrowings are not quoted in an active market. Their value 

approximates the carrying amount. 

29.5 Capital management 

The Company’s objectives when managing capital, which is a broader concept than the ‘equity’ on the face of the 

balance sheet, are: 

• To comply with the capital requirements set by the Central Bank; 

• To safeguard the Company’s ability to continue as a going concern so that it can continue to provide returns for 

shareholders and benefits for other stakeholders; and 

• To maintain a strong capital base to support the development of the business. 

The Central Bank requires all licensed deposit-taking microfinance institutions to i) fulfil the minimum capital 

requirements, and ii) comply with solvency, liquidity and other requirements. 

The table below summarises the composition of regulatory capital: 


KHR’000 

US$ KHR’000 

(Unaudited) 

US$ 

(Unaudited) 

Tier 1 Capital 

Share capital 11,379,120 2,848,340 11,379,120 2,817,311 

Share premium 5,535,835 1,385,691 5,535,835 1,370,595 

Retained earnings 104,836,385 26,241,899 81,967,871 20,294,100 

Statutory reserve 2,285,868 572,182 2,285,868 565,949 

Currency risk reserve 2,383,890 596,718 2,184,559 540,866 

Legal reserve 1,137,912 284,834 1,137,912 281,731 

Capital strengthening reserve 4,621,873 1,156,914 3,276,768 811,285 

132,180,883 33,086,578 107,767,933 26,681,837 

Tier 2 Capital 

Subordinated debts (*) 4,032,971 1,009,505 4,032,971 998,507 

Total regulatory capital 136,213,854 34,096,083 111,800,904 27,680,344 

(*) This represents subordinated debts approved by the Central Bank. 

75 



Let us join your happiness with our consumtion loan

Palm sugar stirring activity of Amret’s clients in Kampong Chhnang city, Kampong Chhnang province

APPENDIX: 

NOTES ON COMPLIANCE WITH THE CENTRAL BANK’S PRAKAS 


79 

Schedule 1 Net Worth And Solvency Ratio 

80 

Schedule 2 Liquidity Ratio 

82 

Schedule 3 Net Open Position In Foreign Currency 

83 

Schedule 4 Reserve Requirment 

84 

Schedule 5 Loan Classification, Provisioning, And Delinquency Ratio 

85 




1. SOLVENCY RATIO, Prakas No. B7-07-163 

A licensed deposit-taking microfinance institution shall at all times maintain a solvency ratio of more than 15%. As at 

31 December 2012, the solvency ratio of the Company was 21.58%. 

The net worth and solvency ratio calculation are detailed in Schedule 1. 

2. LIQUIDITY RATIO, Prakas No. B7-07-163 

A licensed deposit-taking microfinance institution shall at all times maintain a liquidity ratio of at least 50%. As at 31 

December 2012, the liquidity ratio of the Company was 111%. 

The liquidity ratio calculation is detailed in Schedule 2. 

3. NET OPEN POSITION IN FOREIGN CURRENCY, Prakas No. B7-07-134 

A licensed microfinance institution shall at all times maintain a net open position in foreign currencies in either any 

foreign currency or an overall net open position in all foreign currencies, whether long or short, which shall not exceed 

20% of the Company’s net worth. As at 31 December 2012, the net open position in Khmer Riel and US$ was 7.29%. 

The net open position calculation is detailed in Schedule 3. 

4. RESERVE REQUIREMENT, Prakas No. B7-07-163 

A licensed deposit-taking microfinance institution shall deposit 8% of its deposits into an account maintained with the 

Central Bank. On 22 January 2009, the Company received a licence from the Central Bank to conduct a deposit-taking 

business. As at 31 December 2012, the Company’s reserve requirement was KHR 26,255,939 thousand which is lower 

by KHR 427,115 thousand than the Central Bank’s requirement. However, on 14 January 2013, the Company made 

additional reserve requirement of KHR 427,640 thousand with the Central Bank to comply with the requirement. 

According to article 3 of the aforementioned Prakas, the Company is allowed to replenish its reserve requirement 

shortfall within 14 days after each of month end. 

The reserve requirement calculation is detailed in Schedule 4. 

5. LOAN CLASSIFICATION, PROVISIONING, AND DELINQUENCY RATIO, 

Prakas No. B7-02-186 

Licensed microfinance institutions shall classify their loan portfolios into the following four classes, depending on the 

financial situation of the borrower and the timeliness of principal and interest payments. 

Loan term of one year or less than one year 

• Standard: 

• Sub-standard: 

• Doubtful: 

• Loss: 

Loan term of more than one year 

• Standard: 

• Sub-standard: 

• Doubtful: 

• Loss: 

good financial condition and punctual payment of principal and interest 

some payments of principal and/or interest are overdue by 30 days or more 



good financial condition and punctual payment of principal and interest 




Mandatory levels for specific provisions on the loans are classified as follows: 

• Sub-standard: 10% regardless of the collateral value except cash 

• Doubtful: 30% regardless of the collateral value except cash 

• Loss: 100% 

As at 31 December 2012, the specific provision provided by the Company was KHR 211,029 thousand which is in 

compliance with the Central Bank’s Prakas. 

Loan classification, provision and delinquency ratio calculation are detailed in Schedule 5. 

79 



Schedule 1 

Net Worth And Solvency Ratio As At 31 December 2012 

I- Sub-total A: Items to be added 

KHR ‘000 

- Capital or endowment 11,379,120 

- Reserve, other than revaluation reserves 8,885,107 

- Premium related to capital (share premium) 5,535,835 

- Provision for general banking risks, with the prior agreement of the Central Bank 

- Retained earnings 78,289,834 

- Audited net profit for the latest financial year 29,121,362 

- Other items approved by the Central Bank - 

133,211,258 

II- Sub-total B: Items to be deducted 

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

> Unpaid portion of capital - 

> Advances, loans, security and the agreement of the persons concerned as defined above 617,784 

- Holding of own shares at their book value - 

- Accumulated losses - 

- Formation expenses - 

- Losses determined on dates other than the end of the annual accounting period 

(including provisions to be made for doubtful debt and securities) - 

III- Total C: BASE NET WORTH = A – B 132,593,474 

IV- Sub-total D: Items to be added 

- Revaluation reserves, with the prior agreement of the Central Bank - 

- Subordinated debt, with the prior agreement of the Central Bank, up to 100% of base net worth 4,032,971 

- Other items, with the prior agreement of the Central Bank, could be included in the 

calculation of net worth and shall not be more than the base net worth - 

- 

4,032,971 

V- Sub-total E: Items to be deducted 

- Equity participation in banking and financial institutions - 

- Other items - 

VI- Total F: TOTAL NET WORTH = C + D – E 136,626,445 

- 


80

Schedule 1 

Net Worth And Solvency Ratio As At 31 December 2012 

KHR ‘000 

I- Numerator (A) 

Net worth 136,626,445 

II- Denominator (B) 

Assets (*) KHR ‘000 Weighting 

- Cash 21,792,412 0% - 

- Gold - 0% - 

- Claims on the Central Bank 50,651,919 0% - 

- Assets collateralised by deposits - 0% - 

- Claims on sovereigns rated AAA to AA- - 0% - 

- Claims on sovereigns rated A+ to A- - 20% - 

- Claims on banks rated AAA to AA- - 20% - 

- Claims on sovereigns rated BBB to BBB- - 50% - 

- Claims on banks rated A+ to A- - 50% - 

- All other assets 633,097,585 100% 633,097,585 

705,541,916 633,097,585 

III- Solvency ratio (A/B) 21.58% 

(*): The denominator of the ratio shall comprise the aggregate of the assets (net amount after deduction of provision 

and depreciation) and off-balance sheet items, weighted to their degree of risk. It excludes the items which are deducted 

in calculating the net worth according to the provisions of the Prakas on the calculation of microfinance institutions’ 

net worth. 

Amret’s staff met Village Association committee before course closing at Praek Tamak Branch 

81 



Schedule 2 

Liquidity Ratio As At 31 December 2012 

KHR ‘000 

1- Numerator: Liquid assets 

- Cash on hand 21,792,412 

- Balances with the Central Bank 23,258,068 

- Balances with banks 12,583,483 

Sub-Total (A) 57,633,963 

Less: 

- Amount owed to the Central Bank - 

- Amount owed to banks - 

Sub-total (B) - 

Net liquidity (A – B) 57,633,963 

Plus: 

- Portion of loans outstanding maturing in less than one month 34,637,557 

Liquid assets (L) 92,271,520 

2- Denominator: Adjusted amount of deposits (A) 

Category of deposits KHR ‘000 % 

- Voluntary savings 333,538,173 25% 83,384,543 

LIQUIDITY RATIO (L/A) 111% 

Branch Manager, Deputy Branch Manager, Mini-Branch Manager, supervisor of POS, and Unit Manger took part in the 9 th management seminar at 

Sokha hotel, Sihanouk ville 


82

Schedule 3 

Net Open Position In Foreign Currency As At 31 December 2012 

Currency 

Assets 

KHR ‘000 

Liabilities 

and capital 

KHR ‘000 

Net open 

position (NOP) 

KHR ‘000 

NOP/ 

Net worth 

% 

Limit 

% 

US$ 400,099,632 410,066,172 (9,966,540) -7.29% 20% 

KHR 305,442,284 295,475,744 9,966,540 7.29% 20% 

Total 705,541,916 705,541,916 - - 

Net worth 136,626,445 

Stone carving activity of Amret’s clients in Siem Reap city, Siem Reap province 

83 



Schedule 4 

Reserve Requirment As At 31 December 2012 

KHR ‘000 

1- Voluntary 

1-1 Demand - 

1-2 Savings (4%-5% per annum) 94,832,102 

1-3 Term 238,706,071 

1-4 Other - 

1-5 Total reservable deposits 333,538,173 

2- Compulsory 

2-1 Program (3% per annum) - 

2-2 Program - 

2-3 Program - 

2-4 Total compulsory savings - 

3- Total savings mobilised 333,538,173 

8% Reservable deposits 26,683,054 

Khchey cake making activity of Amret’s clients in Krolanh district, Siem Reap province 


84

Schedule 5 

Loan Classification, Provisioning, And Delinquency Ratio 

As At 31 December 2012 

Loan classification 

Amount 

KHR ‘000 

Rate 

% 

Specific 

Provision 

KHR ‘000 

1- Loans of one year or less 

1-1 Standard 213,608,184 - 

1-2 Substandard past due ≥ 30 days 18,808 10% 1,881 

1-3 Doubtful past due ≥ 60 days 8,209 30% 2,463 

1-4 Loss past due ≥ 90 days 107,028 100% 107,028 

Sub-total 1 213,742,229 111,372 

2- Loans of more than one year 

2-1 Standard 380,318,054 - 

2-2 Substandard past due ≥ 30 days 280,389 10% 28,039 

2-3 Doubtful past due ≥ 180 days 238,731 30% 71,618 

2-4 Loss past due ≥ 360 days - 100% - 

Sub-total 2 380,837,174 99,657 

Grand total 1+2 594,579,403 211,029 

All loans past due > 30 days (A) 653,165 

Loans outstanding (B) 594,579,403 

Delinquency ratio (A/B) 0.11% 

Amret’s staff in specified standard uniform 

85 



Contact Detail 

Head Office 

#35BA, Street 169, Sangkat Veal Vong, Khan 7 Makara, Phnom Penh, 

P.O.Box 411, Postal Code: 12253 

Tel: 023 999 033 / 023 885 942 

E-mail: info@amret.com.kh 

CALL CENTER: 023 999 033 

1 Phnom Penh Office 

# 35BA, Street Tchecoslovaquie (169), Sangkat Veal Vong, Khan 7 

Makara, Phnom Penh, Cambodia. 

Tel: 012894 768 

E-mail: pp-accountant@amret.com.kh 

1.1 Bak Touk Branch 

# 35BA, Street Tchecoslovaquie (169), 

Sangkat Veal Vong, Khan 7 Makara, Phnom Penh, Cambodia. 

Tel: 077 829 693 / 023 992 932 

E-mail: ppbt@amret.com.kh 

1.2 Steung Meanchey Branch 

# 511, Monireth Blvd, Trea 3 Village, 

Steung Meanchey Commune, Meanchey District, Phnom Penh 

Tel: 012 201 796 / 077 355 328 

E-mail: ppmc@amret.com.kh 

1.3 Toul Kork Branch 

# 150BD, St. 516, Sangkat Beung Kak1, Khan Toul Kork, Phnom Penh 

Tel: 012 924 866 / 012 924 778 

E-mail: pptk@amret.com.kh 

1.4 Chbar Ampov Branch 

#593, Deumsleng Village, Sangkat Chbar Ampov 2, Khan Meanchey, 

Phnom Penh 

Tel: 012 217 455 / 012 217 465 

E-mail: ppca@amret.com.kh 

1.5 Chaom Chao Branch 

#235, Preypring Khangcheung Village, Sangkat Chaom Choa, Khan 

Porsenchey, Phnom Penh 

Tel: 012 701 448 / 012 701 445 

E-mail: ppcc@amret.com.kh 

2 Kandal Provincial Office 

# 554-555, Street 21, Sangkat Takhmao, Krong Takhmao, Kandal Province. 

Tel: 012 924 123 

E-mail: ka-accountant@amret.com.kh 

2.1 Kien Svay Branch 

Toul Tnoat Village, Korki Commune, Kien Svay District, Kandal Province. 

Tel: 012209 939 / 012 557 963 

E-mail: kaks@amret.com.kh 

2.2 Khsach Kandal Branch 

Prek Takov Village, Prek Takov Commune, Khsach Kandal District, 

Kandal Province. 

Tel: 012 924 265/ 077 959 667 

E-mail: kakk@amret.com.kh 

2.3 Praek Tamak Branch 

Praek Tamak Village, Praek Tamak Commune, Khsach Kandal 

District, Kandal Province. 

Tel: 077 959 673 / 012 924 251 

E-mail: kapm@amret.com.kh 

2.4 Prek Por Branch 

Rokathvea Village, Prek Por Commune, Srey Santhor District, 

Kampong Cham Province 

Tel: 012 683 154 / 012 683 144 

E-mail: kmpp@amret.com.kh 

2.5 Lavea Em Branch 

Toek Klang Village, Toek Klang Communce, Lavea Em District, 

Kandal Province. 

Tel: 092 495 960 

E-mail: kaks_la@amret.com.kh 

2.6 Takhmao Branch 

# 554-555, Street 21, Sangkat Takhmao, Krong Takhmao, Kandal Province 

Tel: 012 932 074 / 012 926 709 

E-mail: pptm@amret.com.kh 

2.7 Kandal Stoeng Branch 

Svay Ming Village, Bakou Commune, Kandal Stoeng District, 

Kadal Province 

Tel: 077 959 674 / 012 557 954 

E-mail: kast@amret.com.kh 

2.8 S’ang Branch 

Prek Run Village, Prek Koy Communce, S’ang District, Kandal Province 

Tel: 077 959 672 / 012 404 683 

E-mail: kasa@amret.com.kh 

2.9 Koh Thom Branch 

Svay Kroam Village, Praek Thmey Commune, Koh Thom District, 

Kandal Province 

Tel: 077 959 669 / 012 924 154 

E-mail: kakt@amret.com.kh 

3 Kampong Cham1 Provincial Office 

# 99, Street Tuol Sbouv, Village 2, Sangkat Veal Vong, Krong Kampong 

Cham, Kampong Cham Province. 

Tel: 012 634 048 

E-mail: km-accountant@amret.com.kh 

3.1 Kampong Siem Branch 

# 99, Street Toul Sbov, Village 2, Sangkat Veal Vong, Kampong Cham 

Krong, Kampong Cham Province 

Tel: 077 959 677 / 012 924 651 

E-mail: kmki@amret.com.kh 

3.2 Prey Chhor Branch 

#078, Prey Totueng Village, Chrey Vien Commune, 

Prey Chhor Distict, Kampong Cham Province 

Tel: 077 959 678 / 012 404 687 

E-mail: kmpc@amret.com.kh 

3.3 Kang Meas Branch 

Thlok Chroeu Village, Khchao Commune, Kang Meas District, 


Tel: 077 959 676 / 012 924 501 

E-mail: kmke@amret.com.kh 

3.4 Chamkar Leu Branch 

NR 71, Thnalbek Keut Village, Svay Teab Commune, 

Chamkar Leu District, Kampong Cham Province 

Tel: 077 993 075 / 077 990 944 

E-mail: kmcl@amret.com.kh 

3.5 Batheay Branch 

Phaav Village, Phaav Commune, Batheay District, Kampong Cham Province 

Tel: 012 931 906 / 015 544 912 

E-mail: kmbt@amret.com.kh 

4 Krong Soung Office 

Cheung Lang Village, Sangkat Suong, Krong Suong, Kampong Cham Province 

Tel: 077 342 414 

E-mail: sn-accountant@amret.com.kh 

4.1 Ponhea Kraek Branch 

Kandaol Kaong Village, Koang Kang Commune, 

Ponhea Kraek District, Kampong Cham Province 

Tel: 077 959 679 / 012 924 523 

E-mail: kmpk@amret.com.kh 

4.2 Tboung Khmum Branch 

Cheung Lang Village, Sangkat Suong, Krong Suong, 


Tel: 077 959 680 / 012 924 658 

E-mail: kmtk@amret.com.kh 

4.3 Kroch Chhma Branch 

Kroch Chhma Krom Village, Kroch Chhma Commune, 

Kroch Chhma District, Kampong Cham Province 

Tel: 077 730 086 / 012 206 395 

E-mail: kmkc@amret.com.kh 

4.4 Chhlong Branch 

Koh Kandol Village, Chhlong Commune, Chhlong District, Kratie Province 

Tel: 012 851 398 / 012 851 396 

E-mail: krch@amret.com.kh 

5 Kampot, Kep, Sihanouk Ville, and Koh Kong Provicial Office 

1 Usaphea Village, Sangkath Kampong Kandal , Kampot City, Kampot Province 

Tel: 012 634 044 

E-mail: kp-accountant@amret.com.kh 

5.1 Kampot Branch 

1Usophea Village, Sangkat Kampong Kandal, Krong Kampot, 

Kampot Province. 

Tel: 077 959 684 / 012 609 114 

E-mail: kpkp@amret.com.kh 


Contact Detail (Cont.) 

5.2 Kampong Trach Branch 

Kampong Trach 1 Village, Kampong Trach Khang Koeut Commune, 

Kampong Trach District, Kampot Province 

Tel: 077 959 685 / 012 446 301 

E-mail: kpkt@amret.com.kh 

5.3 Banteay Meas Branch 

Preykrola Khang Lech Village, Toukmeas Khang Lech Commune, 

Banteay Meas District, Kampot Procince 

Tel: 077959 682 / 012 446 275 

E-mail: kpbm@amret.com.kh 

5.4 Prey Nup Branch 

Boeng Veng Village, Veal Rinh Commune, Prey Nop District, 

Sihanouk Province 

Tel: 077 959 686 / 012 433 196 

E-mail: snpn@amret.com.kh 

5.5 Angkor Chey Branch 

Po Village, Phnom Kong Commune, Angkor Chey District, 

Kampot Province 

Tel: 077 959 681 / 012 433 126 

E-mail: kpac@amret.com.kh 

5.6 Chhouk Branch 

Chrey Village , Satv Pong Commune , Chhouk District , Kampot Province 

Tel: 077 959 683 / 012 404 681 

E-mail: kpch@amret.com.kh 

5.7 Preah Sihanouk Branch 

Road Ekareach, Phoum 2, Sangkat 2, Krong Preah Sihanouk, 

Preah Sihanouk Province 

Tel: 012 914 389 / 012 914 388 

E-mail: snps@amret.com.kh 

5.8 Sre Ambel Branch 

Trapeang Village, Sre Ambel Commune, Sre Ambel District, 

Koh Kong Province. 

Tel: 012 217 393 / 012 205 717 

E-mail: kpsa@amret.com.kh 

6 Prey Veng Provincial Office 

Phum 2, Sangkat Kampong Leav , Krong Prey Veng, Prey Veng Province 

Tel: 012 634 046 

E-mail: pv-accountant@amret.com.kh 

6.1 Preah Sdach Branch 

Krasang Torng Village, Angkor Reach Commune, 

Preah Sdach District, Prey Veng Province. 

Tel: 012 924 097 / 077 959 702 

E-mail: pvps@amret.com.kh 

6.2 Ba Phnum Branch 

Chheu Kach Village, Chheu Kach Communce, Ba Phnum District, 

Prey Veng Province 

Tel: 077 95 96 93 / 012 446 305 

E-mail: pvbp@amret.com.kh 

6.3 Kanhchriech Branch 

Prongeuy Muoy Village, Thma Pun Commune, Kanhchriech District , 

Prey Veng Province. 

Tel: 077 959 694 / 012 433 219 

E-mail: pvkc@amret.com.kh 

6.4 Peam Chor Branch 

Prekdach Village, Prekdach Communce, Leuk Daek District, Kandal Province 

Tel: 012 448 691 / 077 95 97 01 

E-mail: pvpc@amret.com.kh 

6.5 Prey Veng Branch 

Phum 2, Sangkat Kampong Leav , Krong Prey Veng, Prey Veng Province 

Tel: 077 959 698 / 012 614 402 

E-mail: pvpv@amret.com.kh 

6.6 Svay Antor Branch 

#685, Pou Chentam Village, Svay Antor Commune, 

Svay Antor District, Prey Veng Province. 

Tel: 012 893 380 / 089 669 694 

E-mail: pvsa@amret.com.kh 

6.7 Sithor Kandal Branch 

Preaek Sandaek Village, Preaek Changkran Commune, 

Sithor Kandal District, Prey Veng Province. 

Tel: 012 894 755 / 012 701 383 

E-mail: pvsk@amret.com.kh 

6.8 Pea Reang Branch 

Kampong Popil Village, Kampong Popil Commune, 

Pea Reang District, Prey Veng Province 

Tel: 077 959 671 / 012 924 209 

E-mail: pvpr@amret.com.kh 

6.9 Tean Pleung Branch 

Tean Pleung Village, Smoung Commune, Kamchay Mear District, 


Tel: 012 701 440 

E-mail: pvtp@amret.com.kh. 

7 Svay Rieng Provincial Office 

Mephleng Village, Sangkat Svay Rieng, Krong Svay Rieng, Svay Rieng Province 

Tel: 012 201 797 

E-mail: sr-accountant@amret.com.kh 

7.1 Svay Rieng Branch 

Mephleng Village, Sangkat Svay Rieng, Krong Svay Rieng, Svay Rieng Province 

Tel: 077 738 343 / 077 45 91 74 

E-mail: srsr@amret.com.kh 

7.2 Kampong Trabaek Branch 

Prasat Village, Prasat Commune, Kampong Trabek District, 


Tel: 077 959 699 / 012 433 194 

E-mail: pvkt@amret.com.kh 

7.3 Mesang Branch 

Veang Village , Chi Phoch Commune , Mesang District , 


Tel: 077 959 700 / 012 425 380 

E-mail: pvms@amret.com.kh 

7.4 Svay Chrum Branch 

Svay Kngor Village, Svay Chrum Communce, Svay Chrum 

District,Svay Rieng Province 

Tel: 012 923 758 / 077 959 703 

E-mail: srsc@amret.com.kh 

7.5 Chiphu Branch 

Tuol Ampil Village, Sangkat Chrak Mtes, Krong Bavet, 

Svay Rieng Province 

Tel: 012 650 318 / 012 650 316 

E-mail: srcp@amret.com.kh 

7.6 Romeas HaekBranch 

Kampong Trach Village, Kampong Trach Commune, 

Romeas Haek District, Svay Rieng Province 

Tel: 012 650 294 / 012 928 574 

E-mail: srrh@amret.com.kh 

8 Kampong Speu and Kampong Chhnang Provincial Office 

St. 4, Peanichekam Village, Sangkat Roka Thom, Krong Chbarmon, 

Kampong Speu Province 

Tel: 012 634 049 

E-mail: ks@amret.com.kh 

8.1 Samrong Tong Branch 

St. 4, Peanichekam Village, Sangkat Roka Thom, Krong Chbarmon, 


Tel: 077 959 692 / 012 605 130 

E-mail: ksst@amret.com.kh 

8.2 Kampong Chhnang Branch 

Ti Prambei Village, Sangkat Khsam, Krong Kampong Chhnang, 

Kampong Chhnang Province 

Tel: 077 959 688 / 012 924 296 

E-mail: kckc@amret.com.kh 

8.3 Kampong Tralach Branch 

Soben Village, Peani Commune, Kampong Tralach District, 


Tel: 077 959 690 / 012 446 273 

E-mail: kckt@amret.com.kh 

8.4 Kong Pisei Branch 

Tramkhnar Village, Snam Krapeu Commune, Kong Pisei District, 


Tel: 077 959 689 / 012 446 207 

E-mail: kskp@amret.com.kh 

8.5 Odoung Branch 

Odoung Village, Veang Chas Commune, Odoung District, 

Kampong Spue Province 

Tel: 077 959 691 / 012 446 205 

E-mail: ksod@amret.com.kh 

87 



Contact Detail (Cont.) 

8.6 Barsedth Branch 

Phsarslablaeng Village, Svay Rumpea Commune, Barsedth District, 

Kompong Speu Province 

Tel: 012 229 457 / 012 683 269 

E-mail: ksbs@amret.com.kh 

9 Takeo Provincial Office 

Lory Village, Sangkat Roka Knong, Krong Doun Keo, Takeo Province 

Tel: 012 634 047 

E-mail: ta-accountant@amret.com.kh 

9.1 Doun Keo Branch 

Lory Village, Sangkat Roka Knong, Krong Doun Keo, Takeo Province 

Tel: 077 959 662 / 012 924 484 

E-mail: tadk@amret.com.kh 

9.2 Prey Kabbas Branch 

Lvea Thnoth Village, Prey Lvea commune, Prey Kabbas District, 

Takeo Province 

Tel: 077 959 664 / 012 427 612 

E-mail: tapk@amret.com.kh 

9.3 Kirivong Branch 

Kampong Village, Preah Bat Choan Chum Commune, 

Kirivong Distict, Takeo Province 

Tel: 077 959 663 / 012 924 481 

E-mail: takv@amret.com.kh 

9.4 Tram Kak Branch 

Angk Tasaom Village, Angk Tasaom Commune, Tram Kak District, 


Tel: 077 959 665 / 012 609 159 

E-mail: tatk@amret.com.kh 

9.5 Bati Branch 

Borcham Village, Chambak Commune, Bati District, Takeo Province 

Tel: 077 959 661 / 012 425 362 

E-mail: tabt@amret.com.kh 

9.6 Kampong Chrey Branch 

Kampong Chrey Village, Smoung Commune, Traing District, 


Tel: 012 914 375 / 012 914 377 

E-mail: takc@amret.com.kh 

9.7 Samrong Branch 

Prey Torteng Village, Samrong Communce, Samrong District, Takeo 

Province 

Tel: 077 358 994 

E-mail: tasr@amret.com.kh 

10 Siem Reap Provincial Office 

Banteay Chas Village, Slakram Commune, Siem Reap District, 

Siem Reap Province 

Tel: 012 614 420 

E-mail: sp-accountant@amret.com.kh 

10.1 Siem Reap Branch 

Banteay Chas Village, Slakram Commune, Siem Reap District, 


Tel: 077 959 651 / 012 924 861 

E-mail: spsr@amret.com.kh 

10.2 Soutr Nikom Branch 

# 10, Group 1,N.R 6 A, Dam Daek Thmei Village, 

Dam Daek Commune , Soutr Nikom District , Siem Reap Province 

Tel: 077 959 652 / 012 932 980 

E-mail: spsn@amret.com.kh 

10.3 Chi Kraeng Branch 

Kampong Kdey I Village, Kampong Kdey Commune, 

Chi Kraeng District, Siem Reap Province 

Tel: 077 959 650 / 012 924 809 

E-mail: spck@amret.com.kh 

10.4 Kralanh Branch 

Pe Chou Village, Kralanh Commune, Kralanh District, 


Tel: 12 217 533 / 012 217 532 

E-mail: spkl@amret.com.kh 

11 Kampong Thom Provincial Office 

#41, St. NR 6, Domrey Cheon Kla Village, Sangkat Domrey Cheon Kla, 

Krong Stung Sen, Kampong Thom Province 

Tel: 012 356568 

E-mail: kt-accountant@amret.com.kh 

11.1 Stung Sen Branch 

#41, St. NR 6, Domrey Cheon Kla Village, Sangkat Domrey Cheon 

Kla, Krong Stung Sen, Kampong Thom Province 

Tel: 012 201 238 / 012 201 343 

ktss@amret.com.kh 

11.2 Stoung Branch 

Chheu Teal Village, Kampongchen Tboung Commune, Stoung 

District, Siem Reap Province 

Tel: 077 959 653 / 012 924 689 

E-mail: ktst@amret.com.kh 

11.3 Baray Branch 

Rumchek Village, Triel Commune, Baray District, 

Kampong Thom Province 

Tel: 077 959 675 / 012 409 612 

E-mail: ktbr@amret.com.kh 

12 Battambang Provincial Office 

#883, Road 5, Group 42, Preak Mohatep Village, Sangkat Svaypor, 

Battambang City, Battambang Province. 

Tel: 077 355 369 

E-mail: bb-accountant@amret.com.kh 

12.1 Battambang Branch 

#883, Road 5, Group 42, Preak Mohatep Village, Sangkat Svaypor, 

Battambang City, Battambang Province. 

Tel: 077 355 370 / 077 355 373 

E-mail: bbbb@amret.com.kh 

12.2 Maung Russey Branch 

Group 05, Maung Village, Maung Commune, Maung Russey District, 

Battambang Province 

Tel: 077355 338 / 077 355 339 

E-mail: bbmr@amret.com.kh 

12.3 Bavel Branch 

Bavel 1 Village, Bavel Commune, Bavel District, Battambang Province 

Tel: 012 635 780 / 012 635 776 

E-mail: bbbv@amret.com.kh 

13 Banteay Meanchey Province 

1 Village, Sangkat Preas Punlea, Krong Serei Sophorn, 

Banteay Meanchey Province 

Tel: 012 835 750 

E-mail: bm-accountant@amret.com.kh 

13.1 Mongkol Borey Branch 

Ruessei Kraok Village, Ruessei Kraok Commune, 

Mongkol Borey District, Banteay Meanchey Province 

Tel: 012835 780 / 012 851 744 

E-mail: bmmb@amret.com.kh 

13.2 Poipet Branch 

Palilay2 Village, Sangkat Poipet, Krong Poipet, 


Tel: 012 904 368 / 012 904 498 

E-mail: bmpp@amret.com.kh 

13.3 Sereisophorn Branch 

1 Village,Sangkat Preas Punlea,Krong Serei Sophorn, 


Tel: 012 904 855 / 012 904 691 

Emial: bmss@amret.com.kh 

14 Kampong Chhang Provincial Office 

A53 Shreet Kandal Village, Sangkat Kampong Chhnang, 

Krong Kampong Chhnang, Kampong Chhnang Province 

Tel: 012 205 747 

E-mail:kc@amret.com.kh 

14.1 Kampong Chhnang Branch 

A53 Shreet Kandal Village, Sangkat Kampong Chhnang, 

Krong Kampong Chhnang, Kampong Chhnang Province 

Tel: 077 959 688 / 012 924 296 

E-mail: kckc@amret.com.kh 

14.2 Kampong Tralach Branch 

Soben Village, Peani Commune, Kampong Tralach District, 


Tel: 077 959 690 / 012 446 273 

E-mail: kckt@amret.com.kh 

14.3 Pursat Branch 

Peal Nhek 1 Village, Sangkat Phteah Prey, Krong Pursat, 

Pursat Province 

Tel: 012 220 441 / 012 634 082 

E-mail: psps@amret.com.kh

Annual Report 2012

Create successful ePaper yourself

Delete template?

Save as template?