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Autlitors' Reportof

South Bonglo Agriculture ond

Commerce Bonk Ltd.Sun Moon Star To\\,er

37, Dilkusha C/A, Dhaka - I000

For ihe perod ended 3l December, 2013

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lndependent Auditor's ReportTo the sharehotders ofSouth Bangla Agriculture and Commerce Benk [imited.

R€port on the FinancialStatements

We have audited the accompanying financial statements of soulh Bangla Agriculture and

Commerce Bank Limited ("the Bank"), which comprise the Balance Sheet as at 31" December,

2013 and the Profit and Loss account, Statement of Changes in Equiiy and Cash Flow

Statement for the period then ended, and a summary of significant accounting policies and

other expianatory information.

Mdnagement's Responsibility fot the Financidl Stotements dnd Internal Conttols

Management is aesponsible for the preparation of financial statements that gjve a true and fair

view in accordance with Bangladesh Financial Reporting Standards as explained in note 211and for such internal control as management deterrnines to be necessarv to enable the

preparation of financial statements that are free from material misstatement, whether due to

fraud or error. The Bank companies Act, 1991 and the Bangladesh Bank Regulations requ re

the l\lanagement to ensure effective internal audit, internal control and risk management

functions of the Bank. The Management is also required to make a self_assessrnent on the

effectiveness of anti-fraud internal controls and report to Bangladesh Bank on instances of

fraud and forgeries-

Au d ito r's Res pon s i b i I ity

our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with Bangladesh Standards on Auditing Those

standards require that we comply with ethical requiretnents and plan and perform the audit to

obtain reasonable assurance about whether the financial statements are free from malerial

misstatement.

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

jud8rnent, including the assessment of the risks of material misstatement of the financial

statements, whether due to fraud or error. ln making those risk assessments, the auditor

considers internal control relevant to the entity's preparation of financial statements that give

a true and fair view in order to design audit procedures that are appropriate in the

ciTcumstances, but not for the purpose of expressing an opinion on the effectiveness of the

entity's internal control. An audit also includes evaluating the approprialeness of accounting

policies used and the reasonableness of accounting estimates made by management, as well

as evaluating the overall presentation of the financial statements of the Bank.

we beieve that the audit evidences we have obtained are sufficient and appropriate to

provide a basis for our audit opinion.

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'r;:::'1"::il:'ilil';Opinion

In our opinion, the financial statements give a true and fair view of the financial position of the

Bark as al31/12/2013, and of its financial performance and its cash flows for the period then

ended in accordance with Eangladesh Financial Reporting Standards as explained in note 2.1.1

Report on Other Legel and Regulatory Requirements

ln accordance with the Companies Act 1994, Securities and Exchange Rules 1987, the Bank

Companies Act, 1991 and the rules and regulations issued by Bangladesh Bank, we also report

the following:

(a) we have obtained all the information and explanation ir'r'hich to ihe best of our

knowledge and belief were necessary for the purpose of our audit and made due

verification thereof;

(b) to the extent noted during the course of our audit work pefformed on the basis stated

under the Auditor's Responsibility section in forming the above opinion on the

financial statements of the Bank and considering the reports of the Management to

Bangladesh Bank on anti-fraud internal controls and instances of fraud and forgeries as

stated under the Management's Responsibility for the Financial Statements and

lnternalControl:

ii)

internal audit, internal control and risk management arrangements of the Bank

as disclosed in note 2.11ofthe financial staiements appeared to be adequate;

nothing has come to our attention regarding material instances of forgery or

irregularity or administrative error 3nci exception or anything detrimentai

committed by employees of the Bank and its related entitiesj

(c)

(d)

(e)

(h)

(i)

in our opinion, proper books of account as required by law have been kept bY the Bank

so far as it appeared from our exarnination of those booksi

the balance sheet and the profit and loss account dealt with by the report are in

agreement with the books of account;the financial statements ofthe Bank have been drawn up in conformitY with prevailing

rules, re8ulations and accounting standards as well as with related guidance issued by

Bangladesh Bankj(f) adequate provisions have been made for advances which are, in our opinion, doubtful

(c) the Jecords and statements submitted by the branches have been properly maintained

and conSolidated in the financial staternents;the information and explanation required by us have been received and found

satisfactory; and

we have reviewed over 80% of the risk weighted assets of the Bank and we have spent

around 1624 person hours for the audit of the books and accounts ofthe Bank.

Place: Dhaka

25 Fehtuaty,2A14

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South Bangla Agriculture rnd Commerce Bank Linlited

N !t 3l Dcce'nbcr 2013

PROPERTY&ASSETS

n hand (lndudlneforeign cuftency)Balance wlth Bansladesh Bank and lts aeeit bank k)(iic udirgforeign cutrency)

Balance with other banks and financial institution

outslde Bangladesh

Money at..ll ard short notice

Loans and advarceeLoan, Cash Creditand Over Drafts etc.Bl Ls purchas€d and discounted

Fired sssets inchding premises, furniture andfixtures

Non - banking assets

LIABILITIES AND CAPITAL

Deposits and other accountscLtrentaccount and oilrer accounts etc.Saviigs bankdeposlts5hod term deposits

Deposit under dlfferent sche.nes

capital / shareholders' equity

Reva uauon reserue forfFT securitlesExchange equa izauon accountSurplls/{def ct) in profitand o$accountTotal shareholders' equityTotal liabilities and shareholders' equity

2013

10.0110,03

10.04

11.00

\55,342,Q64

327,624,903482,966,967

3,918,968,6489,065,050

3,924,O33,694

100,000,000

502,930,88649,993,419

552,924,305

2,583,890,586

3,006,767 ,9757aL674,aaA471,526,953

8,673,891,9|L

294,088,49095,806,056

506,660,4203,263,396,412

135,112,54943,332,482

1610

4,441,950,92594,251,368

4,536,202,293

12.0213.00

14.00

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03.00

05,0006.00

08,0009.00

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25,244,340

Maiih Muhith Haque &aharrFred A...!.tinl(

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Chanered A.countanisn Proctice Since ItE5

South BAngla Agriculture and Commerce B:rnk Limited

ds rt31 D.ccmbc.2013

OFF. sALANCE SHEEI EXPOSURES

Acceptances and endorsementsLetter ofguaranteesrrevocable letter of credit

Bllls for coilectlonOiher contingent llabilityTotal contingent Liabilities

Documentary Credlts and ShortTerm Trade

Forward Assets Purchased and Forward

Undrawr Note ss!afce and Revo vlngUnderwriung Faci tiesUndrawn Forma Standby Facjiues, Cred t Linesand

Total Off-aalancesheet exposure includingcontingent Uabilitis

15.00

15.01

15.O2

49,717,022

749,544,242

302,r5J,743

5O7,373,047

Thcse fimncial slatenents should be read ii corjurcLio! $iLh lhe annexed nores

pl. Re---.^ ^a-

m*#aChariered AccoLrntants

See .nnexed .udirors retorl to L|e sh[eholdcrs oftl]c date

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ln Procllce Slnce 1985

South Bangla Agriculture and Commetce Ilink LimitcdProfit and Loss Accountfor tb€ p€riod end€d 31 Dec€nber 2013

Less:lnterest pald on deposlts.nd borow ngs eic

Lncofre from investmentscomnrisslon, exchanee and brokeraseotheroperatinglncorne

Totaloperatinsincome(A)

Rent, taxes, insurance, e ectricity, etc.

Post:ge, samp, te ecommunlcation etc.Stat onery, prinung, adverlisement etc.Managing Directof s salary and a lowances

Depreclation, amortnation and repa roffjxed a$ets

Total operating expenses (B)

Prolit befo.e Provision {c)=A-B

Provlsonagainst!nclassfied oans ( nc udlns off-ba ance

Provisions for d m nut on invalue of nvesrment

Tota I profjt/(loss) before tax (c D)

Provlsion forcu(ent incone taxNet profjt/(lo$) atter taxation

Earninss per share {EPs)

16.0017,00

18.0019,0020.o0

2013

446,905,038144,33

302,573,08419,333,053

8,166,2081,857,088

337,929,433

65,869,3867A,489,578

165,545

2,491,9394,411,0436,000,000

700,50057,500

17,r82,14J37,395,417

21.0022.00

23.0024.0025.00

26.0027.00

5heet exposure5) 11,01& 11,05

11 0?

139,159,977

32,464,764

13,675,274r05,444,759

s9,142,99046,341,769

21,097,469

27,097,46925,244,300

29.00

'Ihese Financi.l Sratcncrrs should bc recd h co'lutrction wirhnre annexed trotes

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See annexed audnorJ repon Io the shareholde.s ollhe drre.

Chad€redA..ountants

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ln Proc ce Slnce 1985

South Brngla Agriculture and Commerce Brnk LinitcdSfatement ofCrsh Florvfor the period e.d.d ll De.cnlr€r2013

al Cash flows from operatins activitieslnterest recelpts in cash

lncomefrom lnvestmentFees and commission recelpts in cash

Recoveries of loafs prevlousywritten offcash pavment to emp oyees

Cash payment to suppllers

Recelptsfrorn olheroperatingacuviuesPayment for other operating act vltiesoperating cash tlow before changes in cuiientassets & liabilities

hcrease/DecreaseinOperatingArsetsand Liabilities

{Purchase)/sa e of trading sec!rities

{lncre.se)/deffease !n oans & advancesto other banks(lncrease)/decrease jn oars & advancesto customers(lncrease)/decrease ln other a$etslncrease/(dede:se) ln deposits from other banks

lncrease/(decrease) ln deposits from customerslntrease/(decrease) ln other llabl itiesln-ease/(decrease) in tradlns iabiljties

Net cash flowfrom operating activities

B) Cash flows from investing activiti€sProceeds from sale ofsecuriueslncrease/(decrease) ln cash dueto sale and purcha5e ofinvestments(Purchase)/sale of property, plant and equipment(Purchase)/sale of subsldlaryNetcash used in investjng activitiee

cl C.shflowfromfinancial activjtjesReceiptsfrom issue of ordinary shares/{redempton of sharecap tal)

Net cash flow from financial activities

Netintrease/(deffease) inCash (A+B+c)

Openine cash & cash equlvalent

closjns cash and cash equivalent 28.00

38r,438,486

195,764,O791!6,37J,7147,A55,854

(71,869,386)

177 ,398,5-60l

1,857,08830,949,922

r37,947,194

lr,oou,ru, ,"rr)(3s9,194,707)

4,393,383,050(701)

7,027 ,4L9,666

2013

1,165,366,860

148,243,5O4(192,791,806

124!?!!!qI

4,089,600,000

4,089,600,000

5,013,931,550

These Financial Statcments should he read in conjui.tion rvilh ihe,nn.xed n.r.s

I

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1.1 Status ofthe bank

South Bangla Agricuture and Commerce Banl Limited ('the Banl')was in.orpor:ted rn S.ngladesh as a public

I m:Led corp"n' wilh I n''r.d iror ry bj t " - a' on reor-d^ 20 20.IJ -noer .o. pdn e Act l99a to carn, oulbankinc business. lt obtained license from Bangl:desh Bank for carrying out banklng busjnet! on March 25 ,

2013 under Ban k Compa nies Act 1991. The Bank has been carrying out its banking a cUvlties thro ugh its twelve (12)

branches a lover Bangladesh.

1.2 P.incipalactivities

The prlnclpa actlvities of the Bank are to provide a comprehensive range of flnancia seNicesi peronal and

com mercial ba nklng, trade service, cash m anagement, treas u ry, security a nd c!stody servic€s

2 Bask of preparation of financial statements and significant accounting policies

2.1 Basis of preparation of fins ncial stateme nts

The financial statenrents of the bank as at 31't December, 2013 have been prepared on Soing concern basis

und€rthe hlstoricalcost convention and in accordance with the "Firstsch€dule" oith€ Bank Companles Act,1991 as amended by BRPD cjrcuar No. 14 dated 251h lune 2003, olher Bangadesh Bank circrlars,Bansladesh FinEncial Reportinc standa.ds (BFR5), Bans adesh Accountins Standards lBAss), the companiesAct 1994, the Securlties and Exchang€ Rul€s 1987, and other laws and rules applicable in Bangladesh.

2.1.1 Statement of Co mpliance

The financ;aL statements of the Bank are prepared in accordance with Eangladesh Financial ReportingStandards (BFRs)and the requjrements ofthe BankCompanies Act 1991, the rules and regulations issued bY

Bangladesh Bank, the Companies Act 1994, the Securities and Exchange Rules 1987 1n cas€ any requirementof ihe Bank companies Act 1991, and provislons and circulars issued bY Bangladesh Bank differ with ihose ofBFRS, the requirements of the Bank Companies Act 1991, and provlsions and circulars issued by Bangladesh

Bank shall prevail. Materia departures ffom the requlrem€nts of BFRS ar€ as fol ows:

South Bangla Agriculture and Commerce Bank LimitedNot€s to the FinancialStatementtfor the period ended 31December,2013

i) hvestment in shares and securities

BfRS: As per requlrement of BAS 39 investmert ln shares and securties generally falk €lther !nder "at fairvalue through profit and loss account" or under "avrilable for sale" where any chan8e in the fair value (as

measured in accordance with BFRS 13) at the yeaFend is taken to proflt and oss account or revaluationreserve respectively.

Bangladesh Bank: As per BRPD circular no. 14 dated 25th lune 2003 invesiments jn quoted sh.res andunquoted shar€5 are revalued at the year end at mark€t price and as per book value of last audlted balancesheet respectlv€ly. Provision should be made for any loss arislng from diminution in value of investmentiotherwise inv€stments are recognlzed at cost.

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Revaluation gains/losses on Government securities

BFRs: As per requirement of BAs 39 where securities fal underthecategoryofHeldforTrading{HFT),anYchange in the fair value of held for trading assets is recognlz€d throuSh profit and loss account Securities

designated as Held to Maturity (HTM) are measured using amortlzed cost method and interest income isreco8nlzed through profit and loss account.

Bangladesh Bank: HFT secrritles are r€valu€d on the bask of mark to market 3nd at year end anv ga ns onrevaluation of s€curiues which have not matured ae at the ba ance sheet dat€ are recognized in other

part of equity and any losses on revaluation of securlties which have not matured as at thebalanc€ sheet date are charged in the proflt afd oss account- lnterest on HFT securlties includingamortization of discount are recognized in the profit and loss account. HTM securities which have nolmatured as at the balance sheet date are amorlized at the year end and gains or losses on amortization arerecognized in other reserve as a paftofequity.

Provision on loans and advances/investments

BFRS: As per BAS 39 an entity should start the lmpairment assessm€it by consldering whether objectlveevldence of impairment exists for finafcia assets that are lndlvldually slgnifcant. For financial assets thatare not lndividuallv sienificant, the assessment can be performed on an indivldual or collective (portfolio)

Bangladesh Bank: As per BRPD circLrlar No.14 (23rd Septemb€r 2012), BRPD circular No 19 (27th December2012) and BRPD cjrcular No. 05 (29th May 2013) a senerll provision at 025% Io 5% under differentcatesorles of unclasslfied loans (sood/standard loans) has to be maintained regardless of objecuve €videnceof impairment. Also provislon forsub standard loans, doubtful oansandbad osses has to be provided at2o%, 50% and 100% respectively for loans and advances depending on the dLrration of overdue Agaln as perBRPD circular no. 10 dated 18th September 2007 and BRPD clrcular no. 14 dated 23rd September 2012, a

generaL provision at 1% ls required to b€ provided for all off balance sheet exposures. Such provision policies

ar€ not specifically in line with those prercribed by BA5 39.

Recognition of interest in suspense

BFRS; Loans and advanc€s to customers are generaly classiied as 'loans and receivab es' as per BAs 39 andinter€st income k recognized usinC effective interest rate nrethoci over the ierm of the l03n. Once a loan is

impalred, interest income ls recognized in prcfit and loss account on the same basis based on revised

Bangladesh Bank: Bangladesh Bank has lssued templates for financial staiements whlch will strictiy befo low€d by allbanks. The templates offinanclalstatements issued bY Bangladesh Bank do not lnclude Othercompr€hensive ncome nor are the elements of other conrprehensive lncome a lowed to be included ln a

single Other Comprehensive Income (OCl) Statement. As such the Bank does not prepare the othercomprehensive incorne statement. How€ver, elements of ocl, if any, are shown ln the statements of

Other compreh€nsive lncome

BFRs: As p€r BAS l Other Comprehensive lncome (OC)ls a component of flnanclal statements or theelements ofOC are to be included in a single Other Comprehenslve lncome staternent

i0

iii)

iv)

10

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Bangladesh Bank: Bangladesh Bank has issued tenrplates for flfancial statements which will strictlv be

followed by allbanks. The ternplates offinancia statements issued by Bangladesh Bankdo notincludeOthercomprehenslve lncome nor are the elements of oth€r comprehensive lncome allowed to be included jn 3single Other Comprehensive lncome (OCl) statement. As such the Bank does not prepare the othercomprehensive income statement- However, eements of OC, if any, are shown in the stater.enis of

Financial instruments - presentatio n a nd disclosure

ln severa cases Bangladesh Eank guidelines cateSorize, recognize, measure and presenr flnancialinstruments dlfferently from those prescrlbed in BAs 39. As such full disclos!re 3nd presentationrequirements of BFRS 7 and BAS 32 cannot be made in the financjal statements.

rinancial guarantees

BFRS: As per BA5 39, financiaL guarantees are coniracts that require an entity to makespecified paYm€ntstoreimbLrrse the holder for a loss it inculs because a speclfled debtor faik to make payment when due inaccordance with th€ ternrs of a debt instrument. Financlal guaraniee liabilities are recognized iniiiallv atthelr falr value, and the initial falr value is amoruzed over the life of the financial guarantee. The financialguarantee liabi ity is subsequently carri€d at the hlgher of this amortized amount and th€ present value ofany expected payment when a payment under the guarantee has become probable. Financial guarante€s

are included within other liabllities.

B3ngladesh Bank: As per BRPD 14, financia guaraniees such as letter of credit, l€tter of Cuarantee will betreated as off balance sheet items. No liablllty is recognized for the guarantee except the cash ma,8rn

viii) cash and cash equivalent

SFRS: Cash and cash equjv:lent items shou d be reported as cash it€m as per BAS 7

sangladesh Bank: Some cash and cash equivalent items such as 'money at call and on shod notice', treasurvbills, Baigladesh Bank bills and prize bonds are not shown as cash and cash equivalents Money at call andon shoft notic€ is pr€sented on the face of the ba ance sheet, and treasury bills, prlz-" bonds are shown ln

vi)

vii)

i*) Non-banking asset

BFRSj No indication of Non-banking asset is found in any BFR5.

Bangladesh Bank: As per BRPD 14, there rnusl exist a face item named Non-banking asset.

Cashflowstatement

BFRS: The Cash fLow statement can be prepared using ejther the direct method or the indirect method. Thepres€ntation is s€Lected to present these cash flows ln a mannerthatls most appropriateforthe hu(ines< orindustry.The method s€lected h app ied conslslenty.

gangladesh Banki As per BRPD 14, cash flow h the mixture of direct and indlrect methods.

x)

17

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xi) B3lancewith Bansladesh sank: (cash R€serve Requirement)

BFRS: Balance with Bangladesh Bank should be tr€ated as other asset as ii i5 not available for use in dav todayoperations as per BAS 7.

Bangladesh sank: Balance with Bangladesh Bank is treated as cash and cash equivalents

xi;) P.esentaiion of intangible asset

BFRSr An lntangible asset must be identified and recognized, and th€ disclosure must be giv€n as per BAs 38

Bangladesh BankrThere is no regu ation for intangible assets in BRPD 14.

Managem€nt:

a) An intangible asset is recognized if it is probabl€ that the future economic benefits that are attributable tothezssetwi flowtothe€ntityandthecostoftheassetscanbemeasuredreliably

b) Software represents the value of comput€r application software licensed for use of the Bank, other thansoftware applled to th€ operauon software system of computers. lntanglble assets are carried at cost, less

accumu ated arnortization and 3nY impairment losses. lnitial cost conrprises license fees paid at the timeof purchase and other directly attributable expendliur€ that are incurred ;n customklng the software forit< iniended use.

c) ExpenditLrre incurred on software is capitalized only when lt enhances and extends the economicb€nefils of computer softwar€ bevond thejr oligina speclfications and lives and such cost is recognized as

capitalimprovement and added to th e origina I cost of software.

d) Software is amortized using the stralght line rneihod over the estimated usefu llfe commencing fromthedateofappllcation when software is avEilab efor use

xiii) off-balance sheet items

BFRS: There ls no concept of off balance she€t items in any BFRs; hence there js no requlrement fordisclosureofoff balanc€ sheet items on the face ofthe balancesheet.

Bangladesh Bank As per BRPD 14, off balance sh€€t items {e.9. Letter of credit/ Leiter of guarantee etc )

must be disc osed separately on the fac€ ofthe ba ance sheet.

xiv) roan' and advances/investments net of provision

BrRS: Loans and advances/lnv€stm€nts should be presented net of provlsion.

Bang'adesh Bank: As per BRPD 14, provision on loans and adv.nces/investments are presented s€paratelYas liabi iW and cannot be netted ofi asalnst loans and advanc€s.

12

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n Pro.ti.e Since 1985

2.2 Use of estimates and judgment

The preparation of the Financial Statements in conformlty with BFRS/BAS requlr€s manag€ment to makejudqments, estimates and assumptions. These judgrnents, estimates and assumptions affect the applicationofaccountingpo icies and the reported amountofassetsand liabillties aswellas income and expenses in theFinancia stater.ents presented. Achralresu t may differ from the esumates and assumptions r.ade.

Estimates and underlying assumpUons are reviewed on an ongoing basjs which wlll be disclosed in theflnancial statements as and when required. Revisions io accounting esumat€s are recognired in the p€riod in

which the estimate is revised and jn anyfuture period aff€cted.

For€ign curr€ncy kansaction

a) Functional and presentatloncurrencY

Items inc ud€d in the financial statements ar€ measured using the currency of theprimary economlc envlronment in which the entlty op€rates, i€. the functional currency. The financis

statements of the Bank ar€ presented in Bangladeshl Taka which is the Bank's functional and

presentation currency.

b) Foreign currendes tra nslation

Amounts in foreign currency are translated in accordance with th€ princjples set forth in Bangladesh

Accountlng Standard 21 (BAS) "The Effects of changes in Foreign Exchang€ Rates". As per this standard

moneiary ltems not denomlnated in BDT and cash transactions not completed at the reporting date

are transiat€d into BDT using current market rates. Non monetary ltenrs carrled at fair value are

trans ated into BDT usinE curent market prlce at th€ reporting date and non_mon€tary items carried atcost ar€ trans at€d using the rate applicable at the Ume of acquisition. Transaction rates are used totranslate the items related to income and expenses.

commitments for oltstanding forward foreign exchange contracts disclosed in these financial

statements are translat€d at contracied rates. Conting€nt liabi itj€s / comrnitments for etters of credit

and letters of guarantee d€nominated ln forelgn currencies are expressed in Taka terms at the rates ofexchange ruling on the ba ance sheet date.

d)Translation gains and Iosses

The resulting exchang€ transaction galns and losses are included ln the profit and loss account

a.sets and basis ofthehvaluatlon

lnvestment in Govt. Securities

All investment securities are initially recognized at cosl belng fair value of the consideratlon given,jncludlng acquisition charges sssoclat€d wjth the investment. Premiums are amortized and dlscountsaccredlted, uslng the €ffective yield method and are t:ken to dlscount income The valuation method ofinvestments used are:

Held to Maturity (HTM)r lnvestments whjch have'fix€d or determinable paYments', and are intend€d tobe 'held to maturity', other than those that meet the definltion of'held at amortiz€d cost others' areclasslfied as held to maturity.

2.3

2.4

13

P ri m eG I o ba I I i,i,:,;;):,:;:':,":,it,,,,,,,,,,, t rr i,Rfl ?,n'""=il":YJT:Chaftered AccountNDls

n Prociice Since 1985

Held fo. Tradins IHFT): lnvestments classifled in this catesory are acqulred principa ly for the purpose ofs€lling or repurchasing in shor-t-tradjng oI if desiSnat€d as such by the management. After iniiialrecognition, invesiments are measured atfairvalue and anychanse in thefairvalu€ls recosnized in otherreserve as a pan ofequity.

vilre of inv-"simenis has been enumerated as follows:

Applicable accounting value

G^vFrnmcnr rrF:crrrv hilr HTM

Gnv4rnmanf rrQ!r"n/ hill<-HFl

G^varnmpnrrrp,("rv h.ndq-HTM

Governmenttreasurv bonds HFT Market value

2.4.2 Loans and advances

a) Loans and advances are stated in the balance sheet on Eross basls-

b) Commlssion and dlscounts on bills purchased and discount€d are recognized at the iime of realization

c) Loans and advances ar€ writien off to the €xtent that (i) there ls no reaLlstic prospect of recovery, (ii) andagainst which legal cases are pendlng for more than five years as per euidelines of Bangladesh Bank. These

written off accounts howev€r will not undermine / affect the clajmed amount against the borrower' Detalledmemorandum records for all such wriiten off accounts are meticulous y maintained and followed Lrp Beforebeing wrltten off 100% provision ismadeagainstloan and advances.

2.4.3 Leasefinance

Leasesareclassifiedasfinanceleaseswheneverthe'termsofthelease'transfersubstanrialvalltherisksandrewards of owne6hip to the lessee as per BAs'17 "LeaseJ'. All other leases are classifled as operating leases

as per BAS 17 "Leasel'.amouni d!e from l-"ssees under finance leases are record€d as receivables at the amount of the Bankk netinv€stment in the eases. Finance lease income is allocated to accounting perlods so as to reflect a constantperlodlcrate ofr€turn oi the bank's net investment outstanding ln respect ofthe leases.

2.4.4 P.operty, plant and equipment

Property, plant & eq!ipment are recognized if t is probable thtst fut!re economic benefjts associaied withtheass€tswil flowtothe Bank andthecostoftheassetscan be rellab y measured.

a) A I fixed assets are stated at cost less accumu ated depreciation as per 845_16 "Prope.ty, Plant andEquipment". The cost of acquisitlon of an asset comprises its purchase price and anv directlvattributabLe cost of bringlng the asset to its worklng condition for its intended use inclLrsive of inwardfreight, dlties and non-refundable taxes. Expenditure incurred after the assets have been put intooperauon, sLrch 3s repairs and maintenance, is fornra ly charged off as revenue expenditure ln thep€rlod in which it is incuffed.

14

P ri m eG I o ba I I i :,i ;:;::,:f :: :,it,,,,,,,,,,,,,,, t rr i;f,flR[1'""'XSYJT:Chartered AccouDtanls

ln Pro.il.e Slnc-- 1985

b) Depreciatjon is charsed for the perlod at the followins rates using straiBht line method on aLl fixed

catesorv of fixed assets

Machin,"ry & equlpments 20%

la%

computer & A.cessoriee 2A%

2A%

Othertools 20%

Foradditions during the period, depreciation is charged forthe remainingdavs ofthe p€riod fromthedate ofthose putinto use and for disposald€preciation k charged uptothedateofdlsposal

On disposal of fixed assets, the cost and accumulat€d depreciation are ellminated from the fixed zsseis

schedule and Cain or loss on such disposal is reflected in the income statemenl which is determined

with reference to the net bookvalue ofthe assets and net sale proceeds.

Boffowing costs that are dlrectly atiributable to the acquisition, consvr.rction or production of a qualirying

asset have been capitalized as part ofthe cost ofth€ asset a5 per BA5_23.

2.4.5 Othe. assets

Other assets include all balance sheet accounts not covered specificallv in other areas of the s!pervisorvactlvityand such accountsmayb€ qultelnsjgnificantconsiderlngthe overallfifancia condition ofthe Bank

2.4.6 Securities purchased under r€-sale agr€ement

5ecuriti€s purchased under re sale agreernents are treated as colateralized l€nding and record€d at theconsideration paid and interest accrued thereon The amount lent is shown as an assel either as loans and

advances to custome15 or loans to other ba.ks-

Th€ difference between purchase price and re_sa e price is treated as lnterest received and accrued evenlv

over the life of Repo agreement.

2.4.7 Receivables

Recelvables are recognized when th€re is a contractua right to receive cash or another flnancial asset fromanother entlty.

2.4.8 Re€onciliation of inteFbank and inteFbranch atcount

Accounts wlth regard to lnter bank are reconciled regularly and there are no material djfferences which maV

df'e,l r_el'.ncrd sL"Ler"nlsislifi..ntlvUn reconciled entries / balances in th€ case of inter-branch transactions 3s on the reponing date are not

2.5 Share cap;tal

ordinary shares are classlfled as equity when there is no conkactual obllgatlon to transfer cash or otherfinancialsssets.

2.6 Statutory reserve

Bank Compani€s Act, 1991 requires the Bankto transfer 20% of its current yea/s profit before tax to reserveuntilsuch reserve equals to lts paid up capital.

d

d)

e)

15

'ff erimeG I o ba l ;,:;;:;:i:i:,::,"):,:1",,,,,,,,,,,,,,,. t rr xRiR[1'."'n5YJ:':Chrrtere.l AccouDlrrlts

ln Pro.uc-- Slnce 1985

2.7 Depositsand other accounts

Deposits by customers and banks are r€cognizedarrangements with the count€rparti€s, which is

.onrideration received.

when the Bank enters into contractual provisions of thegeneralLy on trade dat€, and initially m€asured at the

2.8 Borrowingsfrom other banks,financial institutions and agents

Borrowed fund, include cal rnoney deposits, borrowlnss, re finance borrowinss and olher ternr borrowinssfrom banks. rhese are stated in the balance sh€et at amolnts payable. lnterest pajd / payable on thesebonowings is charged to the proflt & loss accoLrnt.

2.9 Basis forvaluation of liabilities and provisions

2.9.1 Empioyees benefits

a. short term benefits

Short-term benefits are employee ben€fits which fall due wholY withln twelve nionth after the end of theperiod in which the employees render the re ated service. The Bank provides varlous short term beneflts toits employees like ircentive bonus, l€ave fare assistance etc.

b. Providentfund

The benefits of provident fLrnd are giv€n to the emp oyees of th€ Bank ln accordance w th ih€ Provjdent Fund

RuL€s as per section 2(52) of lncome Tax ordinance, 1984. The Provident Fund was not recognized withNatlonal Board of Revenue. Separate bank account ls maintained to manage the fund Al conlirmedemployees of the Bank contrlbute 10% of their basic salary as subscription to the Fund Th€ B:nk also

contribuies €qual amount to the Fund. lnterest earned from ihe lnvestments of fund is cr€dited to themembers' account on yearly basls.

As per the Employees Service Ruie of th€ Bank, gratuity shall be admlssib e to all regular emploY€es whohave completed continuous service for a period of 7 (seven) years if the Bank and in case of experienc€dbanker r€cruited throlsh head huntins the admlssible period shall be s (fjve) years The amount of gratuitvshall be calculated at the rat€ of 2 (two) months' substantive pay for each conrpl€ted year' of seruice As no

empLoyeehascomp eted oneyearperiod ofseruice perlod, provision fo r grat u ity has not been made

Other beiefits include house bulldlng, consumer flnance and car loan at a concessional rate.

2.9.2 Provision for liabilities

A provlsion is recognized in the Balance Sheet when the Bank has a legal or constructive obllgation as a resultof a past event and it h probable that an outflow of econonric benefit will be reqLrirPd ro settle theobligations, in accordancewlth BAS 37. "Provisions, Contingent Liabilitiesaid Contingent Ass€ts"

?.9.3 P.ovis;onfor Off balance sheet itemsl

off balance sheet items have been disclosed under contingent llabllities and other commitments as per

BangLadesh Bank guide ines. Provision @1% asainst off balance sheet exposures (L/c and Gualantee ek) inadditlon to the exlsting provisioning arrangenrent is made as per BRPD Circu ar # 14, dat€d 23 " S€ptember,241,2.

2.9.4 Provision for current taxation

Provislon for current income tax has been made as per prescribed rate ln th€ Finance Act, 2013 on theaccounting proft made by ihe Bank after considerlng some of the add backs to income and dlsallowances ofexpendlture as per lncometax laws ln compliEncewlth BA5_12 " lncomeTax€s".

16

P ri m eG I o ba I 1 i :,1,;;!: |;:i,",i,:i,,,,,,, ^,,,,, 7rrril'1iR[1'":nSYJ:':

Chnrtered AccouDt!nlsln Pr..u.-- S nce 1985

2.10 Rev€nuerecognition

The rev€nu€s dLrring the period ar€ recogni?ed complying all conditions of revenue recognition as pr€scribed

in sangladesh Accounting standard (BAS) 18, "Revenue Recosnition".

2.10.1 lnter€st income

ln tenns of the provislons of the BAS 18 "R€venue", the interest income is recognized on accrual basis.

lnter-"st on loans and advances ceases to be taken lnto lncome wh€n s!ch advances are classified lt is thenkept in interest suspense. After the loan ls classifed as bad, interest ceases to be applied 3nd recorded in themenrorandum account. lnterest on classified advances is accounted for on a cash rec€ipt bas 5

2.10.2 lnvestment income

lnterest income on lnvestments is recognjzed on accrual basis Capital gain on inv€stments in shares is also

includ€d ln investment income. Capltalgain is recognized when it is realized

2.10.3 Fees and commission income

Fees and commission jncome arislng on serr'ices provided by the Bank are recognized on a cash r€ceipt baskcommission charged to custom€rs on etters of credit and lett€6 of Suarantee are credited to income at thetime of affecting the traf sactions.

2.10.4 Dlvidend incom€ on shares

Dividend incomeonshares is recognized duringtheperiod in which it is declared and ascenained.

2.10.s lnterest pard on bo owin8s and deposits

nterest paid on Borrowings and Deposlts are calculated on a daY basis and recognized on accrual basjs.

2.10.6 Management and other expenses

Exp€nses ;ncrrred by the Bank are recognized on actualor accrual basis whenever n€cessary.

2.11Risk manag€ment

2.11.1 lnternalControl andCompliance Management

Operaiional loss may arise from error and fr:ud due to lack of lnternal control and compliance.Managemenl through lnternal control and compliance Divislon controls operational procedure of theBank. lnternal Control and Compliance Dlvision !ndedakes periodlca and sp€cial audit of the branchesand departments atHeadofflcefor revi€wofthe operatlon and compliance ofstatutory requirement The

Audit Committee of the Board subsequently review5 the reports of the lnternal Control and CompllanceDivision.

2.11.2 Foreign Exchange Risk Management

Foreisn exchange risk ls defined as the potential chanse in earnlnss arlslng due to chanse in market prices

The foreign exchange risk of the Bank is minimal as all the transactions are carrl€d out on beha f of thecustomers against underlying t/C commitments 3nd other remlttance requir€ments

Treasury Department independ€ntly conducts the transaciions 3nd the back office of treasury kresponsible for verificaUon of the deals and passing th€ir entries in the books of account All foregnexchange transactlons are revalued at Ma.k_to Market rate at the month-€nd Al Nostro accounts arereconciled on monthly basis and outstanding entries are revjewed by the managernent for settlement onregu ar basls.

17

'ff Pri meG I o ba I ),:,i,;:;::,ii:;:':i"it,,,,,,.",,,,,,, /rrri;fliH;1'."=n5YJ?:Chfilered Accounlants

ln P...il.-- s nc-- 1985

2.11.3 Credit Rkk Management

Credlt Rlsk is d€fln€d as potentlal oss arising from the faiure of a counter partv to meet financial

obligations as p er contractuE I agreeme nt with the 8ank. For maintainingsteadygrowthofthe tunkand foreco;omic development ofthecountry the Bank manages credit risk meticulouslv. The Bankextends cr€ditfaciliues to dlfferent clients in different sectors after ensuring due diligence afd mitlSating risk factorsprop€rly as per guldellnes set by Bangadesh Bank, Executive Committee of the Board of Dlrectors and

Manasement Credit Committee ofthe Bank.

The Bank has segregated dLrties of the execuuves/offlcers invo ved in credll related activities A separatemarketing divlsion has been formed at Head Office which is entrust€d with the duti€s of maintainingeffective relauonship with the customer, marketing of credit products, explorinC new buslness

oppoftunities etc. Moreover, credit approval, adminlstration, monitorlng and recoverv fun-ions have b-"en

segregated. For this purpose, three separate ufits have been formed namelY credit Risk Managem€nt

Ditlsion, credit Administration Division. credit Risk Management Division is entrusted with the duties ofmaintaining asset quality, assesslig risk invo v€d ln lendlng, sanctioning credit and tbrmulatingpolicy/strat€sy for lendins operation. credlt Risk Gradlns (CRG) is also made for individuEl borow-"B

2.11.4 Asset Liability Management

The Asset Liabjlity committee (ALco) of the Bank nronitors markei risk and liquldity rlsk of the Bank The

mark€t risk is defin€d as potential change in earnings d!e to ch:nge in rate of interest, foreign exchangerates which are not oftrading nature. Asset Liabiity Commjttee (ALco) reviews liquiditv requirement oftheBaik, the maturity of assets and liablllties, deposlt and lending, pricing strategy and the liquldityconUngency p an. The primary objective of the AICO is ro nronitor and avert signiJlcani volatilitv in Net

nter€st lncome (Nll), return on assets, investment value and exchange earnings The ALCO ako monitorsthe Capital Adequacy Ratio on monthly/quarterly basis.

2.11.5 Money Laundering Risk Management

Money laundering risk is defined as the loss of reputation and expenses are incurred as pena ty for being

n€gllg€nt in prevention of nroney launderinS. For mitigating the risks, the Baik has a d€signated Chief

coflrpllance officer at Head office and compli:nc€ officers at branches, who independentlY tevlew the

uansacuonsoftheaccountstoverifysuspicioustransactions Manuals for prevention of money laundering

have been established and transacuon profile has been introduced. Trainlng has b€en continuously given to

all categories of offic€rs and executlv€s for developing awareness and skilfor identjfying susplcious

activities.

2.11.5 lnformation and com m u nication Techno!ogy security Rkk Managem€nt

Iransformation of business process€s in response to iechnology driven customers' needs and services has

brought in tremendous change jn infonnai:on technology platform in the bank The bank has adopted

measures to protect the information and communlcauon platform from unauihorized sccess, modiflcation,virls, disclosLrre and destrucuon in order to ensure busines5 continuity, data saf€tY and security iherebyprotectlng customerg' interest al large,

2.11.7 lnternalAuditManagement

lnternal audit ls an indep€ndent, objective assurance and consulUng activlty designed io add value and todetect human €rror and non-compliance of nternaL Control Procedures The bank has formed an lnternal

Audit Depariment under lnterna conirol & Compliance Division whlch are cofducting internal audlt on

resular basis of every branch and divislon ar Head office and repon the lindinss to the Audit committee ofthe Borrd of Directors. The Audit Departmenttakes necessarysteps to regularize the lrregularities detected:t rhe time of.!dit.

18

P ri m eG I o ba I I l,i,:,;;::,1:i;:,ii,,,,,,,,,,, t t T,eflR[1'";il5YJT:Charre.ed Accountanls

ln Pro.iice Slnce 1985

2.11.8 Fraud and Forgeries Manatement

The Lnternal Contro and Compliance Divislon take initiatives for preparing guidelines / instruction on

regular basis to detect and prevent fraud & forgeries. The CCD communlcate the guidelines / instructions

to the branches and divisions at Head Office on reguiar basis The divlsion alwavs monitoring and

supervisjns for complianc€ of the Suidelines / instructlons so that the occurrence of fraud & forgeries

come to zero ievel.

2.12 Earninss pe. share (EPs)

Earnings per share (EPS) have been calculoted ln accordance with BAS 33, "Earnlngs per Share", which ls

shown on the face of the Proflt & Loss Ac€ount. This has been calculated by dividlng the net profit after tax

bvthewei8htedaveracenumberofordlnarysharesoutstandlngasonDecemb€r31"2013.

2.13 Stateme nt of cha nges in equity

Statement of changes in equity has been prepared rn accordance w(h BA5-1, 'Presentation of Financlal

Siatements" and under the Suidelines of B:ngladesh Bank BRPD Clrcular No 14 dated 25" June, 2003

2.14 Staternent of liquidity

The liquidiiy statement has been prepared in accordance wlth the remainlng maturiw grouping of ihe value

ofiheassets and llabiities as on the reportingdate

2.15 Off-settingfinan€ial assets and finan€ial liabilities

Financial assets and financial liabillties are set off and the net amount repoded in the Balance Sheet wh€n,

and only when the Bank has a legal right to offset the recogniz€d amoLrnt and intends €lth€r ro settle on a

net basis orto realizethe asset and settle the liabilitYsimultaneouslylncome and expenses are presented on a net basis only when permitted by the accounting standards or tbrgains or losses arising from a croup of similartransactions

19

-4 PrimeGlobal ;,,,),.,, ",,,',:,',,,,,,*,,,,, 7rr, ffiH;1Y"*il5YI:':(lhalterccl AccouDlrnls

ln ProcTlceSlnce 1985

20L3

03.00 Cash ln nand andwith Bangladesh Bank

03,02 Balancewith Bansladesh Bank

Ba ance with sonaliBank as AgentofBanglade3h Bank

03,04 Cash Res€rve Ratio (CRR) : 6% ol av€tase demand andtime liabilities

Required re5erve

Adua reserue he d with Eangladesh Bank

surpl!s / {dencit}

Maintained ratio

03.Os statutory Llquldity Ratio{sLR}:19%olaveragedemand andtime liabilities

03.03 statutorydeposit

atash neserle RcquifcmcD! and Sratutory Liquidiry ltalio hole been calculdtcd and inalntained in accordance $ithseclion 33 olBlnk Conparies Act. 1991 and NlPU circular nos. 04 & 05. daled l)ecember 01, 2010

Thc Castr Reserle Requircmen! on rhe Bank's time and deniond liabilirics at thc rale of 6% has becn oalculaLed and

ilaintaincd ilitli Bangladesh Benk in cunenl account and 19% Slalutory l.iquidity Rltio, including CRR, on thc sam€

liabiliries has also been maintained in the ibrm of Lreusur) I'ills. bonds and dcbcnlu.es includinS lC balance lvilh

Bmgtadesh Bank. Borh lhe resen'es maintliDed by the Benk are in cxcess olthe staturory rcquiremenls. as shown

754,174,316

563,688

155/342,064

314,289,540

13,335,363

_- j]1,!4fL

750,342,720

3r4,267,OOO

174,267,AAA

164,924,244

12.54%

Requ red reserve

Actualreserve hed

surplus/ (d€ricit)

Maintained Ratio

Av€rage D€posit

04.00 Balancewith otherbankandfinanclalinstitutions

h sanc adesh (note- 04,01)

Outsld€ Bang adesh (NonroA/c note 04,02)

04.01 Balanc€ with other banksandnnancial institutions(h sanBladesh)

Form of d€posits

Cutrent d€posits:

Janata Bank Linited

Easter. Bafk Limited

M€rcanule Bank Limited

BankA5ia Llmlted

Standard Bank Ltd.

lamuna SankLtd

Al Arali klamiBank Ltd

476,085,280

912,295,445

496,209,805

38.80%

2,505,712,000

3,91a,963,648

9,065,050

3,928,033,698

2,442,593

400,000

5,001

2,500

15,616,553

2,000

500,000

18,968,6482A

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n Proclice S nce 1985

2013

G.5. P. Finance & nvestment Lld.

Lanka Bangla Financ€ Ltd.

PeopLe\ Leasingand F nanclalseruic€s Ltd.

Prime Finance & lnvestmentLtd.

titernationa Leasjng& Financial servlces Ltd.

ndustria and nfr:structureDev€lopmenlCompafyLtd

1,800,000,000

7so000,000

50,000,000

300,000,000

300,000,000

200,000,000

200,000,000

50,000,000

100,000,000

100,000,000

s0,000,000

t,900,000,000

3,918,968,648

04,02

04,02.03

oltsideBangladesh(Nostr OutsideBangladesh(NOSTROA/C)

Non interest bearingac.ounts (note-04.02 01)

lnterest-bearliaaccounts {note-0402.03)

lnterestb€arinsa/C(OltsideBansladesh-NostroA/C)

MaturitvCroupinC of balancewithotherbanksand financial institulions

9,065,0s0

_____ 9!!9!!L

04,02.01 Non interest bearingaccou Non lnterest-bearing Accounts (NOSTROA,/C)

SonaL Bank Ltd, UK

sonaliBank Ltd. LrK

sonaliBank Ltd. UK

Mashreq Bank PSC, NY

AB Bank, Mumbai

united Bank of lnd a

04,02.02 Non lnterest-bearinsa(ount5 (NostroA/c)

1,008,042

7,r35,473

300,362

4,a41,396

1,219,316

__ ,,99!:!:0

28,033,693

2,7 50,000,000

1,150,000,000

3,924,033,594

2013

U5D5 1175 1,008,042

10,639 50 10676 1,135,873

USDS 800,362

AcuS 77.15 4,447,396

ACUS 16,455 00 77.15 7,219,316

772,622,44 9,065,050

21

PrimeGlobal ;.:,,',):.':-,:.":,,.,,, I"' ilRiRR:"*Nfl:AT:Cirrrtered A.countaDts

ln Prcrcilce Slnce 1985

2013

100,000,000os,0o Moneyatcalland shortnotice { Note-05.01)

05,01 Moneyatcelland shorlnoticeclas5in€d ihthefollowing

Bro.d categories :

Mutua Trust Bank Ltd @ 7.00%

Governmentsecuritiesrreasury bond/ b r

28 days treasury biLl

91-dav5treasLry bill

182-daystreas!ry bill

1 Yeartreasury bl

3-Yea6treasury bond

10 Yearstreasury bond

ts YeaBtreasury bofd

20-Yeatrtreas!ry bond

100,000,000

100,000,000

9,840,530

112,s00,631

223,546,321

69,399,851

77,424,996

10,021,750

shares n quoted compail€s Gtcon)(note 06.02) 49,993479

49,993,479

502,874,086

56,800

s6,800

49,993,419

9,840,530

336,036,9s8

1s6,946,598

552,867,505

06,01 Maturitygroupingof inve5tments

Repayable on demand

With a resldual maiurltyoi:

Morethan l month butle$than 3 months

Morethan 3 months butle$than l year

Morethan l year bui Le5s than 2yead

More than 2 yeatr

06.02 c.rr and market value of investnent in share as on 3l December 2013 astollows

s42,924,305

(rk.) {rk.l

AlArafah hlaffl Bank Lid.

LafarBesurha Cement Ltd.

75,000

333,750

200,000

15,000

262,AAO

16,000

300,000

10,000

200,000

104,150

2a.02

31.44

16.66

33.72

16 06

16.89

r92.41

16.29

32.03

2,t47,8\\6,591,56\

6,368,111

249,4-/7

8,435,777

256,896

s,065,668

1,924,JL3

15,257,063

3,336,008

1,965,000

6,374,625

6,s20,000

244,544

4,177,440

260,800

1,902,000

14,764,000

3,239,065

1,515,900 49,993,4L9 44,742,990

-l PrimeGlobal ;:,: ;,:' ;.,:,:,",:'",,.,., t r, ffi*i1Y"*fr5YJT:Charlcrcd Accounlants

n Fraclice Since 1965

07.00 toansandadvances

2-s!lq9!r!q

422,477,aAg

422,A77389

2073

2,583,890,535422,477,389

3,006,767 ,975

Loafs, ca5hcr€dlt, overdrafts elc. (note-07 01)

sills purchased and discounted (note-07.02)

07,01 Loans, cash credit, overdr.fts etc.

ln Bangladesh:

Loan againsttr!st receipt

consutoercredlt

outside sangladesh

o?.02 Billsp!rchased:nddis.ounted

Payable in Bansbdesh

h and bllk purchased

Payable outslde Bangladesh

Foreign b s Durchas€d

07,03 lMat!rityeroupinsofloansand advances{includingbills purchas€d and discounted)

Re-pavable on demand

Not morelhaf 3 ffonthslvorethan 3 months but essthan l year

More than lyear butle$ihan 5 yea6

More than 5 years

o?.04 Countivwise loansand adtances (includins biU purchared and discounted)

2,583,890,586

422,877,349

694,743,424

7,5aa,542

\,425,473,912

377,357,564

74,662,414

2,000,000

66,104,318

2,583,890,536

1,154700,0001,7 51,133,94J

53,517,000

46,816,988i,0o6,767,97 5

lfside BanBladesh

0utslde Bang adesh

07,05 loans and advancesincludinC billr purchased and discounted cla$ited into followins broad calegories

silk purchased and discounted

07.06 Loans and advanc€s on the basi, ofsignincant concentration (including bills pur.h3sed and discounted)

3,AA6,167 ,975

3,006,767 ,975

463,112,4467,425,413,972

694,703,828

a)Loansand advancesto D rectorsofthe bank

b) LoansandadvancestocEo,seniorexecutivesandotherstaffs

c)Loans and advances to customer (croupwke)

196,492,447

66,104318

r,444,677,574

605,100,000

250,400,000

J,406,767 ,975

23

t r, *flt'fl'""'n5YAT:Charered Ac.ountants

n Pro.ii.e Sin.e 1985

2013

Number ofthe clients

Detal of info.matio.onadvancesmo.ethanl0%of bankstotalcapita

Amount of outstandlng loans and advances

Amo!ntofrecoverv

Amountotca$ined oans and advances

07,09 !oan and advancesaspergeoCraphicalconcentration (including bi!k purchased and dis.oubted)

chittaeong di!kiof

Khulna div slon

07,09 lndusrial concentration olloansand adva.ces(includingbill purchased and discou.ted)

T€rm oan to smallcottagelndustles

Terh oantolarge & madlum industries

Consumer cred I

07,10 Loabs and advances to executives and all otherstaffs

07.07 Loans and advan.es allowed to each customer exceeding 10% of bank'stotalcapitalfund

Loansandadvancestoexecutivesandallotherstaffs

07,11 Requiredprovisionforloansandadvances(induding billspurchased

1,753,150,000

2,412,3!7 ,154

4J,444,015

146,966,742

3,006,767 ,9 r5

31,2AA,aaA

52,000,000

377,35J,567

422,a1J,389

1,866,933,0:19

12,100,000

238,300,000

3,006,767,975

66,104,318

66,1rM,318

Base

Unc asslfied (includlngStaff Loan)

a)ccs

b)staff oan

c)HBL

d)toan to profeslona

e)sma enterprisefifance

f)Loans aeainst shar€

g)Agricu tura credlt

(l )s!b{taidrd

(lV)Bad or lo$Total

07.11,01 Provisionprovided

3,006,767,975 27,45t,014

2013

3,006,767,975

5%

2%

2%

0.25%

t%

2A%

5A%

100%

27,4tt,qta

3,006,767,975 21,451,034

14,662,4t4

66,104,318

377,672,7

-44

2,672,3aa,535

533,121

194,432

26,r23,885

24

2f,4s1,034

:€ eri mec loba I i:,;,:::i:::::,:

"it;,,,,,,,,,,,,,,,,, trrlRfl t.-.fl'""'n5YJT:Chr.rered A.countants

n Prd.ti.e Since 1985

07.12 (la55ifi.ationof lodn\andadvan(es{in.lLdinsbrllsput(hasedanddiscountpd)

_____3j!f./gpL

2,992,656,465

14,111,111

3,006,767 ,975

Unch$ined (includins staft loan)

l)sMA

07,13 Particulars of Lo.ns and Advances

{1) Debtsconsidered good in r€spectofwhich the banl companv

(2)Debts consldered Good in asalnsrwhlch th€ Banklngcompany

holds no secLr ty oiher tha. the debtoas peBonal guarantee,

(3) Debts considercd cood &decured bythe peBonal

unde.taklng ofone or more padies ln add t on to the persona

huaranteeof the debtoFl

(41 LoansadveBelyca$ifiedj provision noi malntained thereaBa nni

15) Dcbts due bV director or ofticer ofthe bank ne companv of

any ofthese s€parate y orjo ntly w th afv other person,

(6)Loan due iiom compailes or firms whlch the directors ofthe banlinC compdny directors, partn€E or

nanaglngagents or in the case have lnlerest as olprlvate companies as membe6l

(7)Maxlmumtota.mountofa.lvancesincludinBtemporaryadvancemadeatanytmed!ringtheperlodto directof or managers or ofi cere ofthe banklng.ompanies or any ofthem e ther sepa.ate v o.jo nt v

(8) Maximum totalamo!nt ofadvances includine temporary advance granted durine the period to the

compafles orfirm ln which the directors ofth€ banking or company have lntere5l as directoB, comp:nles

{9) 0ue from baiklnB compailes.

(10)Amount ofda$lfied loan on whlch interen ha5 been charced, sho! d be menuoned as toLowsi

a) Decrease/increase in provision,

b)Amountoi oan wrltten off;

c)Amountrealz€dagainstloanprevloun!wrttenoff;

d)Amounrofprovlslonkeptagaln5t oafclasifedas bad/lo$'onthedateofpreparlnBthebaance

e)lnteren cred tab e to the nterest suspense accouftsi

(11)cum! ative amount olthe written offloan

(12) Amou nt wr ilen off if thecutrent per od;

rla, 16ano- os ollo",oa - "4..r"'b'" nl'd25

262,596,445

196,492,447

262,596,445

196,492,441

27,451,038

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n Proclice Since lt85

07.14 sillspurchasedanddiscount€d

07,15 As per classification into the following broad cateeones

Payab e ln sang adesh

PayabLeOutside BanCladesh

07,16 As perthe rehaining maturity Sroupins in the following order

Payable within l month

over l month but iess than 3 months

over 3 mofths but le$ than 6 months

6 months or more

Motorv€hicLes

MachlnerVand eqLlpment

Furniture and fixture

Complterand acce$ories

Tolal (details are showb in annexed - B)

Advance income tax (note- 09.01)

stock oistat onery stamps & securlty staiionery (note-09.02)

advance rent, adv€rusehent, etc. (note-09 03)

Accrued lnt€rest and commission receivable {note_ 09.04)

S€curity deposits

suspense accounts {not€ 09.0s)

09.01 Advanceincometax

Openingbalance

Prior p€rlod sadjustmen!

Addltion durine the period

ciosing balance

09,02 stock ofstationery, stamps and security stationery

Stock ofstat onery

Stock ofstamp

09.03 Advancetent,advertisement/etc,

Advanceadvertkement

09.04 Accruedlnterestaodcommksionreceivable

accr!€d ntereston lnvestment (note-09,04,01)

CommissLon rec€ivables

422,417,389

422,477,ta9

2013

422,411349

303,034,158

17,471,651

102,825,580

422,477,349

3,936,666

44,168,979

31,482,415

99,270,159

4,349,219

1,476,t22

181,674,040

21,Oa3,592

570.513

208,794,858

62,332,245

66,550

!28,619,794

427,\26,953

,t,oaa,r",21,083,592

513,303

s7,210

570,513

241,294,454

0,000

208,794,454

62,027,497

62,342,245

PrimeGlobal I l.lun.nt,n.a 1i slin t r,, T,R1RK'"',=N5YJ?:Chartered AccourlLrnls

ln ProcTlce Slnce 1985

09.04.01 Ac(ued interest on investment

20La

4,447,959j!l

4,44t,95O,925

294,088,490

9s,806,056

506,660,420

3,263,396,812

135,112,549

43,332,442

103,554,116

Lnterest on oans and advances

Accrued nterest on callloan

hterest on PAD/incom€ a/C LoBP

l.terest on bank deposlt

accrued incomeon HFT

09,05 Suspenseaccounts

Sundrydebrotr

Advanc€ against expen5es

Advance against fixed a$ets

Other prepald exp€nses

10.00 Depositsandotheraccounts

Deposits (seneral)

cureni deposlts

Sa!ings bank deposirs

Shoftterm deposits

Flred deposlts

D€poslts underd lferentschemes (note- 10.01)

Bllk payab e {note- 1o,o3l

0therdeposirs (note- 10,04)

Deposits fron Bank

10.01 Depo5itsunderdiffere.tschemer

Monthlysavlngsscheme

Month y benelt rcheme

Double benefii scheme

lriple beneft scheme

Lakhopoti evlngs (heme(LSS)

10,02 Maluritvwiseclassification

Wilhin l month

Morethan l monih but e5sthan 6 honths

Morethan 6 monrhs but lessthaf l year

Moretha.l year butwithln 5 yeatr

[4orethan 5 yeaE butw]thin l0leaBover 10 yeaB and !nclaimed

Payorderpayable

106,199

58,940,909

62,021,491

6,581

7,433,269

726,681,744

557,560

724,679,794

6,262,934

61,360,089

65,935,274

1,550,000

4,264

135,112,549

4,447,95O,925

452,103,931

37,133,511

633,853,067

2,291 ,79r,499393,670,936

716,747,974

4,441,950,925

43,332,442

43,332,442

27

iff R ri meC I o ba I I ill,',,Jillixljii" il" *,u,,,,.., rrr, flnn#ix?"=nnYJT:Chartered AccounLants

n Prlrciice Since 1985

201?

r0.04 Otherdeposits

Sundrycredltors

ClearlnC adjustment

rax at source {interen)Tax at source (salary)

rax at source (office r€nt)

laxatsource (buyins house)

seruic€ charge/c 3 service charge

ValL€ added tax

charges for cheque books

sundry deposlt acainst loca biLl

lnterest payab e on deposlts

Sundrydeposit

Forelgn cLtref cy h€ld aBainst 3TB L/C

u,00 other Li.bilities

1,933,953

23,O34,546

11,940,997

54,992

5,432,4\9

242,600

363,J29

94,106

20,000

9,000

3,605,575

r74,693

37,O19

1,423,3\9

48,567,8J5

r,9o7,o93

5,018 201

103,554,116

21,45t,034

59,142,990

!,214,450

1,433,860

5,013,730

701)

-,,______91?!!!!L

Provisionfor oansand advances {note- 11.01}

Pro!ision for cu ent incometax (note-11.021

Provisonfordiminution if value of investmeft {note 11,03)

Adiustins account credit {note- u.04)Provision for off ba ance sheet exposure {note- 11.05)

SBAcBL€eneral accounts {note- 11,06)

11.01 Provisidnloiloans:ndadvan.er

openins balance

Add : Transferred dlrlngthe perlod

Less: Adjunment durinCthe period

closins balance

11.02 Provision for .urrent in.ome tax

ProvisionforunciassiJied oansandadvafces {note-11,01,01) 27,451,a3a

27,457,034

11-01,01 Provision forunclassined loansand adva.ces (note-07,11)

27,457,034

27,457,038

M,413,019

44,329,91L

59t742,99O

2A

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2013

11,03 Provision lor dinlnution in val!e ofinvesthent

Opening ba ance

Add: Addition duringthe peiod

Less: adjustmenl duringthe period

Closinsbalance

11,04 Adjusting account (edn

Telephone bill/re €x

11,05 Provision for oif balance sheet erposure

0peflngbalance

Add : addltion durlngthe per od

Le$: Adjustment duri.C the period

closingbalance

11.05 sBAcBLgeneralaccount

SBACBLgeneral acco!ntCr.

SBACBL Benera acco!nt 0r.

12,01 Aurhorizedcapiral

1oo,o0,00,000ordifaryshareof Tk.10/ each

12,02 lssued, subscribed and p.id upcapital

40,89,60,000 ordlf ary share of Tk. 10/- each

12,03 GrouFwiseshareholdingposition

Sponsordirectore

Sponsorsharehold€rs

12.04 Rangewiserhareholdingpostion

1,210,450

1t21O,450

300,649

52,A66

r,473,510

6,JJ6

1,433,860

5,013,730

5,013,730

1,04J ,796,011

0,oa1,!96,1181(701)

10,000,000,000

4,089,600,000

No.ofshares toofholdins

326,100,000 19,74%

32,860,000 2A.26%

3,261,000,000

828,600,000

_____4!!!94!L__-!q!9L --49199949L

s00 5,000 0.00%

0.00%

10,001 20,000 a.00%

20,001 - 30,000

10,001 . 40,000 a.oo%

50,001 - 1,00,000 0.00%

1,00,001 10,00,000 13,000,000 3.14%

39 395,960,000

52 408,960,000 100.00%

29

i@ lri mec I o ba I i:i;i:,1t,:::":::.,,,,.",,-, lllltl"V,i

12.05

4tE(9 Eqo lgs Fr{qMuHrrH HAaUE & Co

Chartered Accountantsln Proclice Since 1985

2013

As per secton 13 {2)ofth€ Bank companles Act,1991and of instructions contalned in BRPD clrcular No 10 dated 2s November

2002, BRPD Circula. No. 03 dated 9 May 2oO4 and BRPo Cicu ar No, 01 dated 19 February 2007, detals of capital adequacv ratio

12.05,01 Elements of core capital

Pald up capiial

Non{epayable share premlum account

statulory reserve

Genera reserue

surplus/(dencit)ln profit & lo$ a(ountMlnority interest ln subsldiarles

Non cumulative irrede€mable preference share

12.0s,02 Eledentsof 5upplementarycapital

Gen€ral provision on Lncla$if ed loans

Reval!aiion resetue ior NFT sec!rlues

Assets revalLaiion reseNe

Allorher preierenceshare

Generalprovlslon on off ba ance sheet exposures

Exchange equa ization lund

Totalcapftal(A)

Tota r sk welghted assets

Required capita 10% on riskweighted assets

or 400.00 crore whlch ever ls higher (B)

su.plus/Gholtfall) (A-s)

capitaladequacyratio

Capital Adequacy ratio-core capital

13,00 Statutorvreserve

0penlng balance

Add Transfened duringthe per od

closing balance

14,00 Profitand loss accounts / retained €ahinss

openlngbalance

Prior perlod's adjustm€nt

Profit/ oss for the period as per pront and lo3saccount

closi.gbalance

4,089,60O000

27,09J,469

,r,roo,aoo

4,739,94t,769

27,451,038

!,149,975

s,013,730

14,774,681

4,770,156,452

6,727 ,034,444

4,000,000,000

15.00 continseni lbbilities and other commiim€nts

Acceptances and endorsement

Letter ofguarantee (not€- 15,01)

kr€vocable Letter of credit

Blhforcollecuon

0thercontingent labillty

Total continse.t liabilities

__!!E E,61.99%

67.44%

2I,A97,469

-______]!plg

,r,r*,roo2s,244,300

49,771,022

!49,544,282

302,757,143

50t,173,o47

30

P ri m eG I o ba I I !,:,i,:;i:,;:':::,::!,,,,,,,,,,,, t rr *;?,[1'."'R:YJ:':Charlcrcd ,\ccountrnrs

ln Procilce Slnce l?85

15,01 letterofguarantee

Moneyforwhich the bank sconlngentlyliabeinrespectofguarafteeGsuEdfavoring:

Bank and otherfinanclal institution

16,00 lnterest income

Lnteresi r€c€ived from oans and advanc€s

Lnterest rec€lved from banks & otherfnancia lnstituuons

17.00 lnterestpaid on d€posits & borowlin€ ect.

rnterest paid on deposits

lnteren paid on borowing

rnteresipald on securities and bonds

18,00 lncomefrominvestnents

Dlvidend on shate

19,00 Commission, exchanseandbrokerage

ExchanCe earnlngs

20,00 other operatl.g income

oiher recelpts (note 20.01)

20.01 orherreceipts

Accounts malf tenance charee

Telex, t€lephone & telegram

21.00 Salaryandallowances

Provid€ntiund

22.00 Rent,taxes, lnsurance, electricitt etc.

2013

1,857,088

,o",roo,r",

__l!gi9!]jL

15r,012,752

295,332,886

446,905,033

137,467,522

77,174

6,192,654

744,337,954

19,333,053

19,333,053

4,644,640

3,215,215

310,353

8,166,204

52,500

1,619,908

2,O25

182,6ss

1,857,088

30,654,364

26,388,576

1,967,846

6,864600

5s,869,386

63,245,779

1,461,353

3,174,396

2,412,J\0

7O,4A9,578

31

:ff Pri m eG I o ba I i,:,: ;:;:i:;::::,i :!",,,,,,,,,,,,,,,, t rr Tifl;il1'."'n:YJT':

Chaicrcd Accountantsrn Pr..il.e Sln.-- l9n5

2013

23.00 Postase/ stahp, telecomm!nication €tc,

PostaBe,teegram and le ex

24.00 Stationery, printinB, adv€nisenent etc.

PrintinC strtlonery

Other stauonery (pettv)

Security stationery

Publicltyand adverikement

25,00 Managing0lrector'ssalaryand allowances

Fouserentallowance

Fouse maintenance allowances

Medica allowance

llu ltva owanc€

26.00 Depreciation, amortization and repan offired ass€t5

Depreclation & amortlzation offix€d a$ets

Repalrsand maintenance

27.00 Othererpenses

Statutory m€eting expenses / board meetingexpenses

Car maintenance eipenses

Branch & head offce inaugurauon exp€ns€s

Prelimi.aryexpefses {note- 27,01)

softw e expeises Gitv rus & oth€r)

Revaluauon Lo$ on treasLrybond

Mlsce aneousexpendit!re

Security servlces expenses

2,414,420

39,699

43,820

2,497,939

237,036

1,105,509

5,560

3,062,938

4,41t,043

2,700,000

7,275,444

450,000

535,000

600,000

450,000

6,000,000

1r,7\7,J2J

64,420

rL,782,r47

455,J10

47,080

15,000

4,856,566

291,681

61,225

96,269

3,563,442

7,020,794

74,969,645

134,535

33O,213

425,000

7,147,432

409,824

r,49L,10r

t146,42975,55\

a7,9J3

759,348

31,395,8L7

32

'@ erimeGlobal ;^,::i;::,:;:,:',::.:i::'",,,,,,,,,,, /rrrfl *,?,[1'."'n5YA:5Cha(crrd Accounlants

ln Proc|cc Slnce l?85

27,01 Preliminaryexpenses

AppLicat on fee lor bankt license

Remunerauon pald to Exe.utlves and OffceG

Fd6- po o to peo r'" o lo -- to L Co oJr F

Fees pald to sec!rities :nd Exchange commisslon

Stationerles and other office continc€ncies

Coiveyance &eniertalnment

23.00 Closingcashandcashequivalent

Carh ln ha rd (includlngioreign curency)

Balance wiih Baneladesh Bank and Sona I Bank (inc udinBforelgn curency)

salance with other banks and nnancial instituuons

Mone! atcalland shod not ce

lnvenmentgoverfment

The n!mber of emp oyee5 ef Eae€d

1,000,000

4,369,000

5,441,725

7,062,920

2,561,246

433,354

14,969,645

r55,342,064

327,624,903

3,928,033,698

100,000,000

s02,930,886

5,013/931,550

46,34L,769

408,960,000

4,13J ,697,684

408,960,000

1,165,366_860

403,960,000

85

29.00 Eahinsspershare(EPS)

a)Nei proll after lax

bJ Numberof ordinary sh3.es

Earninsspershare (a+bl

30.00 Netassetvaluerershare (NAv)

a)Caplta /sharchode6 equityfor the period

b) Number of ou$landing share5

Net a$et value pershare(NAV)(a+b)

31,00 N€t op€rating c.sh flow pershare

a) Ner.ashflowfromoperaungactivities

b) Number oloutstandlnB shares

Netoperatinscashrlowpershar€ (NAV)(aib)

32,00 iiskFactorsandRiskManageffent

mplementrr ons of ather Core Risk Managetoent guldelines are belng followed Credlt Risk Gradlns is done fo. allcommercia

exposure. Banks Asset Liability Commitee i5 entrusred wth ihe responsibilily of managing short-tern & ong term lquidity. ALM

sutdelines& cI euidelines have a so b€en imp €mented n accordance with the culdelines lssued by Bangladesh Bank&lt has been

approved bythe Board of Directore. The bank has estab khed jts KYC & operaliof conlro procedure ior the prevention of Money

Laund€rtns. The bank ha5 nrencth€n€d the nternal control and audit dlvsion to ensu.e comprehonsive audit thereof. A

comp.ehensive rcT polcy has b€en formulated and approved by the board of dlrecto6 to ninimize ICT nsk whlch ls aL.eady

33.00 Nu mber of em ployees

forthewhoe period or partthe.eofwho recelved a tota remuneratonolTk.36,000/ p.:or

34.00 Eventafterthe balance sh€€t date

No materialevent had occuned afterthe ba ancesheetdate

Fisures appeari.s n these nnanc alstat€ments have been rounded ofito tho nearest taka.

o o+ .Jox1' tleo" ldledooe.d.io on 30a.r0lt

j)

ti)

M' F<f----- ^a-33

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Chal1crcd Accounlanlsn Froctice Since lt85

;-----------------iL ---lli::l i

South Bangla Agriculture and Commerce Bank Ltd

Related party disclosures

Parties are considered to be related if one party has the ability to control the other party or to exercise

signiflcant influence over the other party in making firancial and operating decisions. Related party

lnformation is given below:

i) Directors'inierest in different entities:

SL NoName of the

Director

Statuswith the

Bank

Name ofthe firms/companies in whi€hthey are interested as proprietor,partner. director, managing agent,

guarantor, emplovee etc.

Percentage(%) holding

in theRemarks

1Mr- S. M. Amzad

Hossainchairman

1. Lockpur Fish Proc. Co. Ltd 80.00%

2. Baserhat Seafood lnd. Ltd 7 5.00%

3. Southern Foods Ltd 30.00%

4. Shampa lce & Cold Storage Ltd 90.oao/.

5. Rupsha Fish & Allied lnd. Ltd 50.00%

6. Metro Bricks Ltd s1.00%

7. Moon StarJute Mills Ltd 44.44%

8. Moon Star Fish Ltd 50.0odt

L Khulna Printinp & Packasine Ltd 50.0002

10. western lnn lnt'l Ltd 20.aoa/o

11. BanEladesh Polv Printing lnt'l Ltd 44.44%

13. Khulna Agro Export (Pvt.) Ltd 51.OOjA

14- Ocean Trade lnternationai 100.00%

15. Khulna Builders Ltd 51.00%

16. ldeal Polymer E{port Ltd 40.00%

17. M/s sM Amzad Hossain 100.00%

2Begurn Sufia

AmjadDirector

1 BagerhatSeafood lnd. Ltd 25.AOa,A

2. Southern Foods Ltd 4A.AO%

3. Shampa lce & Cold Storage Ltd 10.00%

4. Rupsha Frsh &Allied nd. Ltd 25.OO%

5. Metro Bricks Ltd 49.OO%

6. Moon Starlute Mills Ltd 7.41%

7. Moon Star Fish Ltd 40.o0%

8. KhuLna Printing & Packaging Ltd 2s.o0%

9. Western lnn lnt'l Ltd 60.000,6

10. Bangladesh Polv Printing lnt'l Ltd 7AI%

11. Khulna Agro Export (P\t.) Ltd 49.04%

12. Khulna builders Ltd. 49.40%

'4 PrimeGlobal ;,::' ' .".:"',::", .,, ,, 7rr, flE:ffi'"'"*'nflYJ:':Charrered Accountrnls

n Prcrciice Sinco 1985

SL NoName of the

Director

Statuswith the

Benk

Name of the firms/companies in whichthey are interested as proprietor,partner, director, ff anaging agent,

guarantor, employee etc.

Percentage

{%) holdingin the

company

3Mr. AZM

ShofiuddinDirector

1. Techno €lectrical Ltd. 16.490,6

2. SQWjre & Cable Co. Ltd. 32.240

3. SQ Metal lndustry Ltd. 20.oo%

4. TSCO Power Ltd. 20.oo%

5. TS Transformers Ltd. 35.00%

6. SQ Properties Ltd. 3s.ao%

7. SQ Wood Presarvatives 3s.oa%

8. SQ Lishts Ltd. 35.00%

9. SQAdvertisine Ltd. 25.OO%

10. l\,4icrogenix BD Ltd. 25.OOo/.

4Mr. Abdul Kadir

Molla

1. THERMAX Textile Mills Ltd- 29.98%

2. ADURY Knit Composit Ltd. 50.00%

3. ADURY Apparels Ltd 30.o0%

4. THERMAX Melange SpinningLid-

Mills60.o0%

5. ADURY Washing & Printing Ltd. 60.00%

6. THERMAX Knit YaTn Ltd, 30.00%

7. THERMAX Yarn Dyeing Ltd so.oo%

8. THERMAX Woven Dyeing Ltd. 50.00%

9. THERMAX Yarn DVed Fabrics Ltd. 20.aoo,t

10. THERMAX Spinnine Ltd. 64.40%11 THERMAX Super Spin Ltd 60.o4%

5Mr. Md. Amzad

HossainDirector

1. Khulna Printing & Packaeing Ltd. s.o0%

2. gD Poly Printing lnternational Ltd 5.AOa,A

l. ldeal Polymar Export Ltd. 10.o0%

6Engr, Moklesur

RahmanDirector

1. Contech Construction Ltd. 65.OO%

2. Pre Stressed Poles Ltd. 6s.oo%

3.8&TCablesLtd. ao.oo1a

4. B &T Cold Storaqe Ltd. 6.67%

5.8&TDevelopmentLtd. 33.34%

I Al-haj t\4i?anurDirector

1. M RTradjng Co. 1AA.AO%

2. Modina Propertles Ltd. 90.00%

3. Moon Baneladesh Ltd. 90.4o%

4, Sun Moon Star Real Estate100.00%

5. Moon Group Of lndustries Ltd. 90.ooa/.

35

,:-4 PrimeGlobal ;;,',.,:, ",:";', n,,, , t rr T;-',*i Bii'- :nSYIT':Chattered Account!nts

ln Pro.t.-- S nc-- 1985

SL NoName of the

Director

Statuswith the

Bank

Name of the firms/companies inwhichthey are interested as proprietor,partner, director, managing agent,

guarantor, emplovee etc,

Percentage(%) holdins

in theRemarks

8

Capt. M.lMoazzam

Hossain

Diredor

1. Peoples Leasing & FinancialServicesLtd.

2.O2%

2. Agrovita Ltd 40.ooaa

3. ShooDers World Ltd 20.o0%

4. Ekushey Homes Ltd 3s.00%

5. Masters Ocean Voyage Ltd 700.oo%

5. Paramount Prooerties Ltd 30.00%

7. PLFS lnvestment Ltd 25.OA%

45.O4%

s. AdrniralTradi 100.00%

10. United Cor Adviso Ltd 2A.A0%

11. Peopies lnvestm-"nt Ltd. 2A.AO%

9Mr. Motiur

Rahman

1. Peoples Leasing & FinancialServicesLtd.

2.29%

7. creat Wall Land ProDertv Ltd 25.55%

4- True Distribution Pvt. Ltd 35.O0%

5- Mercantile Securities Ltd 17.00%

6 Trre Services P\t. Ltd 35_00%

8 Paiient Care HosDital {Pvt.) Ltd 20.oaoa

L shoDDers world Ltd 10.00%

10. Shoppers World Express Ltd fi.aoa/o

11 F Se.uriiies Ltd 10.50%L_rtrector

12.less Tower 100.00%

13. Highway Filllng Station 100.00%

14. Telelink 100.00%

15. M( Connection 100.00%

16. MK Plus 100.00%

17. MK Link 100.00%

18. MK Wodd 100.00%

19. N,4KTade lnternational 100.00%

21. M/S Motiur Rahman 100_00%

22. M/S Arman Enterprise 100.00%

36

:S eri meC lobal I i,i,iiii,iiiil"!i,i!,.u,,,,."

',,, T,RflR|1";N5YJT:

Chariered AccountaDtsn Pr.cti.e Since 1985

SL NoName of the

Director

Statuswith the

Bank

Name olthe firms/companies in whichthey are interested as proprietor,partner, director, managing agent,

guarantor, employee etc"

Percentage

{%)holdingin the

Remarks

10Mrs, Sanawar

EanoDirector

1. Famous Printine & Packaging Ltd. o.o4%

2, Famous lberchem Flavours &Frasnances Lld.

o.o7a/.

3. Famous General Agencies Ltd. 0.40%

4. Matcon lirnited o.126,6

5. F.S. Printing & Packagine Ltd. o.18%

6. Green Soap & Chemical Co. Ltd. 034%7. M/s sanawar Bano 100_00%

11Mr. Hafizur Director

1. lovtun Securities lnternational Ltd. as.D%2. Jovtun Developers Ltd. 50.00%

3. S.B. Agro Fertilizer lndustries Ltd. 33.33'A

4. Sheikh Cement Ltd. 18.99%

5. Gold Hill Properties Ltd. 19.o0%

6. M/5. Sherl. h Brothers 100.00%

7- M/S. Hafjzur Rahman Babu 100.00%

72Mr. Anwar

Hussain

1. SAFAH CNG Refuellins Station Ltd . a.33%

2, AnwarCorporation 100.00%

3. HAR lndustries Ltd. 30.007;

4. AbdulGaffar & Co. (Pvt.) Ltd- 70.044/a

5. Asuka CNG Filiing Station Ltd. 2s.40d,4

13Mrs. Tahrnina

Director

1. Anwer Khan Modern Medical College

& HospitalLtd.'to ooD/.

2. Haji Shakhawat Anwera Modern Eye

HospitalLtd.ro.oo%

3. Modern Diabetic Centre Ltd. 10.007"

4. Marrv Gold Holdinss Ltd. i0.0a%

5. Modern Holdings Ltd. 50.40%

6. MotherTrade Center 100_00%

7. Modern Pharma lndustries Ltd. 2A.AO%

14

HajiShakhawatAnwara Eye

Hospital Ltd.

by Mr. Md.shakwatHossain

15Mr. Talukdar

AbdulKhalequeDirector 1 M/S Nahar Trading 100.00%

37

iff e ri m ec I ob al I )i,i,i)il,I!iii"il. *,., n n., rrr, *flfflY-*ffi5YJT:

Chadcrcd Accourtirntsn Proctice Since lt65

SL NoName of the

Director

Statuswith the

Bank

Name of the {irms/companies inwhichthev are interested as proprietor,partner, director, managing agent,

guarantor, emplovee etc.

Percentage

{%} holdinsin the

16I!4 r. MrinalKanli

DebnathDirector 1. Lockpur Group Of Companies

77llr. Maksudur

1. Ratanpur Sieel Re-rolline Mills Ltd. 65.0440/.

2. Ratonpur Shipping Lines Ltd. 60.o0%

3. Ratonpur Ship Recycling lndustriesLtd.

60.00%

4. Fareast Propertv Devolopment Ltd. 25.OO%

5. S M Re'rollins Mills Ltd. 65.OO%

6. M Rahman still Mills Ltd. 65.00%

18Mr, Mohammed

lliasDirector

1. Liberty Enterprise Lid. 80.00%

2. Libertv Accessories (BD) Ltd. ao.o0%

3. MtP (BD)Lrd. 50.00%

4. Sunrise Accessories Ltd, l s.oa%

5. Chittagong Ca rtons Ltd. 75.OAaA

6. Ljbertv Polv Zone (BD) Ltd. 80.00%

7. AMIAccessoles (BD)P!t. Ltd. 25.AOo/a

8. Elfat Poly Packaging and Accessories

Ltd.40.oo%

9- Rahman Poly, Hanger & Accessories

lndustry Ltd.60.00%

1gMr. lvloha mmad

MohsinDirector

1. chittasonp Fibre Board Ltd 43:3%2. SAAD MUSA Fabrics Ltd. (Weaving

Division)22.330,6

3. SAAD MUSA Fabrics Ltd. (Dyeing

Division)22.33%

4. Rokeva spinine Mills Ltd 60.oaa/.

5. Emdad Etima Spinnins Mills Ltd 60.00%

6. Mahamud Sajrd Cotton Mills Ltd 64.406,4

7 Slllrana Habiba Fabrics Mills Ltd 6A.40%

8. Saima Samira Textiles Mills Ltd. 60.00%

9. SAAD MUSA Fabrics Ltd. 22.13%

10. M A Rahaman Dyeing lndustry Ltd. 40.oo%

11. SAAD IMUSA Hometex & ClothingLrd

40.ooo,4

12. Hasni VanasDati Manufacturi l9.180,6

13. AhmadiOil N4ills Ltd la.oa%

14. Al Mustafa Vegetab e Oil lndustry 17.12%

15. SAAD MUSA Housins compjex IOO.OO%

38

iff erimeGlobal i:;:i:;:,::'I:'"-,,*,,-" 7rrrfl -'fliH;1'-"=n5:A:':

Chirtered Accountantsln Pro.ti.-- S nc-- 1985

16. Desh Computers 100.00%

19. SAAD MUSA City Centre 100.00%

20. MARSS Automobile rca.oo%

21. crescent lndustries Ltd. 2 s0%

22. SAAD MUSA Properties Ltd. 700.o04/o

23. Shade Developers Ltd. a6./a%

24. Crescent Park Neighbor Hood 100_00%

25. SAAD MUSA Fishins Prolect 100_00%

26.SMAvenueMotors ]00.04%

20contech

Constrirction Ltd.Director

RepresentedBy Mr.

MushfiqurRahman

ii) Significant contract where bank is a party and wherein Directors' have interest : NIL

iii) Shares issued to Directors and executives without consideration or exercisable at discount:

NIL

iv) Related party transactions:(Amount in Crore iaka)

v) Lendlng policies to related parties:

Related palties are allowed loans and sdvances as pergeneral policv ofthe bank.

vi) Busjness other than banking business with anV related concern of the directors' as per section

8 (2)ofthe bank companies aci 1991:

a) Lease agreement made with the djrectors' / related concerns:

Nature of contract Branch Name Nameofthe Directorand related by

Remarks

Lease agreement Head Oftice M. R. Trading Co.

related by Mr. AlhajMizanur Rahman

Lease period:

01.o1.20t 3 ro31.12.2022

Lease agreement Katakhali Bra nch Mr. S. M. AmzadHossain

Lease period:

01.07.2013 to30.05.2023

vii) lnvestment ofsecurities and related concern: NIL

Name of the Partv Nature oI RelationNature ol

Transaction2(]13

Mother Trade Center Mrs Ta hrnina Afroz, Proprietor cash Cred;t 10.04

Haji Shakwat AnweraEye Hospital

Mrs Tahmina Afroz, Director and Mr. Md.

Shakwat Hossain, I\4anaging DirectorCash Credit 9.51

39

:Q erimeGlobal ;::,:;;t:,:;:,:,i,:',:i,:!",,,,,,,,,,,,,,,, /r,, T,n:R[1'"Sn5YJT:Chrftercd Accountanls

1n Proclce Slnce 1985

ANNEX ,B

South Bangla Agriculture and Commerce Bank LimitedSchedule of fixed Assets

is et 31 December 2013

(Tk.) {rk.} {rk.) {*.) {i<.} (rk.)

coST

3a anceas on 01,01.2013

Additonsdu ngthe p€iod

Balanceason31.12,2013

DEPRECIATION & AMORTIZATIO N

salance as on 01.01.2013

galance as on 31,12,2013

wrilten down value as at 31.12.2013

4,600,000 32,63r,298 ra1,5a7,745 r,897,949 792,79r,406

4,600,000 32,6fr,298 7,497,949 792,797,406

613,334 903,635 1,148,423 3,217,536 r21,87! 47,421 r1,171,126

673,334 904,ff5 7,144,423 4,237,543 727,871 8t,827 7L!1!7,726

3,986,666 40,164,979 t1,482,875 99,27O,L59 4,349,219 7,476,722 181,6t4,080

1) Furnirur€ & Fixtures l0%2)comput€r &Acce$ories 20%

3)Hardware 20%

4)software 20%

s)Eectrical/MechanicalApplan.es 20%

6) r/rotor vehicles 20%

7) Depreciation has been applied from the date of use ofthe asset in porponion to the time for which those were put into use

40

:@ erimeGlobal :::,;;::;:::::":t^,,,,,-, t r, #flti1'""'n5YAT:Charlered Accountants

n Pro.ti.e Sin.e 1985

South Bangla Agriculture and Commerce Bank Ltd.

Details of Large Loan

as at 31 December 2013ANNEX-C

5L No outstandlns lraka in crore)

N4ahabub Brotheu (P!t) Ltd ard P!baliTrade6 52.43 29.69 82.13

z.oe'&7.odi rdb , 8 Tal1. 5p , n , 8 M L' Li-ied 47.34

M/S Frlends Traders, M/S RNS Corporation, aG Asro

lndustries Ltd aid aG Shlp Breaklns lndustries.50.70 3.67

4 Masih:ta Sweaters Limited 8.10 0.04

154.62 33.39 192.01

41

erimeClobal )::,i;::;::;':,:t;.,,,,,,,,,,,,, lttlt*fl*'[1',"tn$YJT:Chaiered Accolntants

. Pr..ti.e Sin.e 1985

South Bangla Agriculture and Commerce Bank LimitedHighlights ofthe overall activities ofthe bank

for the period ended 2013

2073

01 4,089,600,000

a2 4,710,756,452

110,t56,452

a,6n,493,97J

4,441,954,925

06 3,406,767,91s

co.tinaentllabliuesand.onnltments so7,3J3,441

08 advance depos ls ratio (%)

09 clasned oansto advaice ratio {%)

10 Pront after tax af d provislon 46,.47,769

11

12 Provision kept aaalnst classlfied advance

surplus/(defic i) provision

70.L2%

/ ,537 ,732,s59

16 Nof rnterestearnine as5ets 581,237,113

t7 RetLrn on investment(Ro )(%) 3.50

18 Retum ona$ers (Roa)(%)

19 lncome from nvestment 19,333,053

2L 0.11

22 Price earn ngs ratio (times)