Annual report 2009-OK.qxp - Canadia Bank Plc.

Canadia Bank Plc.REPORT OF THE BOARD OF DIRECTORSThe Board of Directors of Canadia Bank Plc. ("the Bank") presents its report together with the audited financialstatements of the Bank as at 31 December 2009 and for the year then ended.THE BANKThe Bank was incorporated in 1991 under a joint venture between the National Bank of Cambodia ("NBC")and certain overseas Cambodians. On 4 February 1998, the NBC disposed all its shares to private investors.In 2001, the Overseas Cambodian Investment Corporation ("OCIC"), a public limited companyincorporated in the Kingdom of Cambodia, acquired 100% of the shares of the Bank and consequentlybecame the holding company of the Bank.In 2007, OCIC conducted a corporate restructuring whereby it transferred its investment in the Bank toCanadia Investment Holding Plc. ("CIHP"), a public limited company incorporated in the Kingdom ofCambodia.The restructuring was approved by the NBC and the Ministry of Commerce. Consequently, CIHPis now the new holding company of the Bank.PRINCIPAL ACTIVITIESAnnual Report 200918The principal activities of the Bank consist of the operation of core banking business and the provision ofrelated financial services through the Bank's head office and various branches in Phnom Penh and in theprovinces.There were no significant changes in the nature of these principal activities during the year.RESULTS OF OPERATIONS AND DIVIDENDSThe financial results of the Bank for the years ended 31 December 2009 and 2008 were asfollows:2009 2008US$US$Profit before tax 24,523,500 27,592,062Income tax expense (4,172,434) (5,518,412)Net profit for the year 20,351,066 22,073,650Million Riel equivalent 84,844 90,082There were no dividends declared or paid during the year then ended.RESERVES AND PROVISIONSThere were no material movements to or from reserves and provisions during the financial year other thanthose disclosed in the financial statements.BAD AND DOUBTFUL LOANS AND ADVANCESBefore the financial statements of the Bank were drawn up, the Directors took reasonable steps toascertain that action had been taken in relation to the writing off of bad loans or the making of provisionsfor bad and doubtful loans and advances, and satisfied themselves that all known bad loans and advanceshad been written off and that adequate provisions had been made for bad and doubtful loans andadvances.