ATA KHAN & CO.           Chartered Accountants  UTTARA BANK LIMITED  Statement of changes in equity for the year ended 31 December 2007               Particulars Paid up Statutory Other Proposed issue  Profit and Loss Total   Capital Reserve Reserve of Bonus Share  A/c Surplus   Balance at 1 January 2007    399,329,600       520,837,039      1,161,297,628  -             3,974,555               2,085,438,822 Changes in accounting policy   -   -   -   -   -   -  Restated balance     399,329,600       520,837,039      1,161,297,628  -             3,974,555               2,085,438,822 Exchange equalization fund  -   -   -   -   -   -  Adjustment of asset revaluation reserve (depreciation charged up to 2006)  -   -          (19,016,210)  -           19,016,210  -  Adjustment of asset revaluation reserve (depreciation charged for the year 2007)  -   -            (2,681,155)  -   -                     (2,681,155) Adjustment of revaluation reserve of govt. secur.   -   -               (335,116)    -                        (335,116) Adjustment of revaluation reserve of HTM secur.   -   -          (38,400,949)  -   -                   (38,400,949) Net profit for the year   -   -                        -    -         409,535,557                  409,535,557 Appropriations during the year:  -   -   -   -   -   -  Transfer to statutory reserve   -          30,000,000  -   -          (30,000,000)  -  Transfer to  general reserve  -   -     -   -   -  Proposed cash dividend  -   -   -   -   -   -  Proposed issue of bonus share  (@ 1:1)  -   -   -           399,329,600       (399,329,600)  -  Balance at 31 December 2007    399,329,600       550,837,039      1,100,864,198          399,329,600            3,196,722               2,453,557,159 Balance at 31 December 2006    399,329,600       520,837,039      1,161,297,628  -             3,974,555               2,085,438,822