9 balance sheet standard bank

8/6/2019 9 Balance Sheet Standard Bank

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Project Financed by Standard Bank Ltd.

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Standard

BankLimited

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A Partial View of Glory Jute Mills, Khulna. Outside view of Nasir Tobaco Industries Ltd.

A View of M/s. Arrow Fashion (pvt.) Ltd. Working scenario of Chaity Composite Ltd.

A Partial View of Incon Trade Ltd. Inside View of Knit Softwear Ltd.


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Status of Compliance of Bangladesh Banks guideline forCorporate Governance (BRPD circular no 16 dated 24.07.2003)

Sl. Particulars

No.

1 Responsibilities and authorities of the Board of Directors

(a) Work-planning and strategic management:

(i) The board shall determine the objectives and goals and to this end shallchalk out strategies and work-plans on annual basis. It shall speciallyengage itself in the affairs of making strategies consistent with the deter-mined objectives and goals and in the issues relating to structural changeand reorganization for enhancement of institutional efficiency and other rel-evant policy matters. It shall analyze/monitor at quarterly rests the develop-ment of implementation of the work-plans.

(ii) The board shall have its analytical review incorporated in the Annual Report

as regard the success/failure in achieving the business and other targetsas set out in its annual work-plan and shall apprise the shareholders of itsopinions/ recommendations on future plans and strategies. It shall set theKey Performance Indicators (KPIs) for the CEO and other senior execu-tives and have it evaluated at times.

(b) Lending and risk management:

(i) The policies, strategies, procedures etc. in respect of appraisal ofloan/investment proposal, sanction, disbursement, recovery, reschedule-ment and write-off thereof shall be made with the boards approval underthe purview of the existing laws, rules and regulations. The board shallspecifically distribute the power of sanction of loan/investment and such

distribution should desirably be made among the CEO and his subordinateexecutives as much as possible. No director, however, shall interfere,directly or indirectly, into the process of loan approval.

(ii) The board shall frame policies for risk management and get them compliedwith and shall monitor at quarterly rests the compliance thereof.

(c) Internal control management:

The board shall be vigilant on the internal control system of the bank in

order to attain and maintain satisfactory qualitative standard of itsloan/investment portfolio. It shall review at quarterly rests the reports sub-mitted by its audit committee regarding compliance of recommendations

made in internal and external audit reports and the Bangladesh Bankinspection reports.

(d) Human resources management and development:

(i) Policies relating to recruitment, promotion, transfer, disciplinary and puni-

tive measures, human resources development etc. and service rules shallbe framed and approved by the board. The chairman or the directors shallin no way involve themselves or interfere into or influence over any

Compliance

status

Complied

Complied

Complied

Complied

Complied

Complied


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administrative affairs including recruitment, promotion, transfer and disci-plinary measures as executed under the set service rules. No member ofthe board of directors shall be included in the selection committees forrecruitment and promotion to different levels. Recruitment and promotionshall have to be carried out complying with the service rules i.e., policiesfor recruitment and promotion.

(ii) The board shall focus its special attention to the development of skills ofbanks staff in different fields of its business activities including prudentappraisal of loan/investment proposals, and to the adoption of modernelectronic and information technologies and the introduction of effectiveManagement Information system (MIS). The board shall get these pro-grams incorporated in its annual work plan.

(e) Financial management:

(i) The annual budget and the statutory financial statements shall finally beprepared with the approval of the board. It shall at quarterly restsreview/monitor the positions in respect of banks income, expenditure, liq-uidity, non-performing asset, capital base and adequacy, maintenance ofloan loss provision and steps taken for recovery of defaulted loans includ-ing legal measures.

(ii) The board shall frame the policies and procedures for banks purchase andprocurement activities and shall accordingly approve the distribution ofpower for making such expenditures. The maximum possible delegation ofsuch power shall rest on the CEO and his subordinates. The decision on

matters relating to infrastructure development and purchase of land, build-ing, vehicles etc. for the purpose of banks business shall, however, beadopted with the approval of the board.

(f) Formation of supporting committees:

For decision on urgent matters an executive committee, whatever namecalled, may be formed with the directors. There shall be no committee orsub-committee of the board other than the executive committee and theaudit committee. No alternate director shall be included in these commit-tees.

(g) Appointment of CEO:

The board shall appoint a competent CEO for the bank with the approval

of the Bangladesh Bank.

2 Responsibilities of the Chairman and Board of Directors

(a) As the chairman of the board of directors (or chairman of any committeeformed by the board or any director) does not personally possess the juris-diction to apply policymaking or executive authority, he shall not participatein or interfere into the administrative or operational and routine affairs of thebank.

Compliance

status

Sl. Particulars

No.

Complied

Complied

Complied

Complied

Complied

Complied


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(b) The chairman may conduct on-site inspection of any bank-branch orfinancing activities under the purview of the oversight responsibilities of theboard. He may call for any information relating to banks operation or askfor investigation into any such affairs; he may submit such information orinvestigation report to the meeting of the board or the executive committeeand if deemed necessary, with the approval of the board, he shall effectnecessary action thereon in accordance with the set rules through theCEO. However, any complaint against the CEO shall have to be apprisedto Bangladesh Bank through the board along with the statement of theCEO.

(c) The chairman may be offered an office-room, a personal secretary/ assis-tant, a telephone at the office and a vehicle in the business-interest of the

bank subject to the approval of the board.

3 Responsibilities of Advisor

The advisor, whatever name called, shall advise the board of directors or theCEO on such issues only for which he is engaged in terms of the conditions ofhis appointment. He shall neither have access to the process of decision-mak-ing nor shall have the scope of effecting executive authority in any matters ofthe bank including financial, administrative or operational affairs.

4 Responsibilities and authorities of CEO

The CEO of the bank, whatever name called, shall discharge the responsibili-ties and effect the authorities as follows:

(a) In terms of the financial, business and administrative authorities vested

upon him by the board, the CEO shall discharge his own responsibilities.He shall remain accountable for achievement of financial and other busi-ness targets by means of business plan, efficient implementation thereofand prudent administrative and financial management.

(b) The CEO shall ensure compliance of the Bank Companies Act, 1991and/or other relevant laws and regulations in discharge of routine functionsof the bank.

(c) The CEO shall report to Bangladesh Bank of issues violative of the Bankcompanies Act, 1991 or of other laws/regulations and, if required, mayapprise the board post facto.

(d) The recruitment and promotion of all staff of the bank except those in thetwo tiers below him shall rest on the CEO. He shall act in such cases in

accordance with the approved service rules on the basis of the humanresources policy and sanctioned strength of employees as approved by theboard. The board or the chairman of any committee of the board or anydirector shall not get involved or interfere into such affairs. The authorityrelating to transfer of and disciplinary measures against the staff, exceptthose at one tier below the CEO, shall rest on him, which he shall apply inaccordance with the approved service rules. Besides, under the purview ofthe human resources policy as approved by the board, he shall nominateofficers for training etc.

Compliance

status

Sl. Particulars

No.

Complied

Complied

Complied

Complied

Complied

Complied

No Advisor


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Standard

BankLimited

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Compliance Report on SEC's Notification

The Securities and Exchange Commission (SEC) requires all listed companies to report on the compliance of the conditions

described in SEC's notification dated 20 february 2006 on "comply or Explain" basis. The Board of directors of the Company

has taken

Annexture-I

Number of Board Meetings and the attendance of Directors:

Name of Directors Position Meeting Attended Remarks

Held

Mr. Kazi Akramuddin Ahmed Chairman 17 17

Mr. Kamal Mostafa Chowdhury Director 17 16 01 day leave was granted by the Board

Mr. Mohammad Nurul Islam Director 17 8 Inducted as Director in the 146th Board

Meeting held on 09.06.2009.

01 day leave was granted by the Board

Mr. Ashok Kumar Shaha Director 17 4 Inducted as Director in the 146th Board



Al-Haj Mohammad Ayub Director 17 7 Inducted as Director in the 146th Board



Mr. Ferozur Rahman Director 17 8 Inducted as Director in the 146th Board



Mr. Harun Rashid Chowdhury Director 17 8 Inducted as Director in the 146th Board



Mr. Md. Monzurul Alam Director 17 3 Inducted as Director in the 146th Board



Mr. S.A.M. Hossain Director 17 7 Inducted as Director in the 146th Board

Meeting held on 09.06.2009.3day leave was granted by the Board

Mr. Mohammed Abdul Aziz Director 17 9 Inducted as Director in the 146th Board


Al-Haj Mohammed Shamsul Alam Director 17 16 1 day leave was granted by the Board

Mr. Abdul Ahad Director 17 13 4 day leave was granted by the Board

Mr. Md. Zahedul Hoque Vice Chairman 17 17

Mr. Ferdous Ali Khan Director 17 13 4 day leave was granted by the Board

Mr. Harun or Rashid Director 17 7 Inducted as Director in the 146th Board


Al-Haj Mohd. Yousuf Chowdhury Director 17 3 Inducted as Director in the 153rd Board


Mr. Moshfeque Mamun Rizvi Director 17 7 Inducted as Director in the 146th Board

Meeting held on 09.06.2009.03 day leave was granted by the BoardInvestment Corporation of Bangladesh

to be represented by Mr. Humaun Kabir,

Managing Director, Investment

Corporation of Bangladesh, Head Office,

8, RAJUK Avenue (14th floor), Dhaka Director 17 14 3 day leave was granted by the Board

Mr. Shaikh Mesbauddin Director 17 17

Mr. Sahazada Syed Nizamuddin Ahmed Independent 17 15 2 day leave was granted by the Board

Director


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Name of Directors Designation Percentage of shareas on 31.12.2008

Mr. Kazi Akramuddin Ahmed Chairman 2.35%

Mr.Kamal Mostafa Chowdhury Director 2.41%

Mr. Mohammad Nurul Islam Director 2.10%

Mr. Ashok Kumar Saha Director 1.00%

Al-Haj Mohammad Ayub Director 0.67%

Mr. Ferozur Rahman Director 1.64%

Mr. Harun Rashid Chowdhury Director 0.96%

Mr. Mohammad Monzurul Alam Director 1.80%

Mr. Serajul Anowar Mohammad Hossain Director 2.72%

Mr. Mohammed Abdul Aziz Director 2.83%

Al-Haj Mohammed Shamsul Alam Director 2.61%Mr. Abdul Ahad Director 3.41%

Mr. Mohammad Zahedul Hoque Vice Chairman 0.59%

Mr. Ferdous Ali Khan Director 2.00%

Mr. Harun or Rashid Director 3.83%

Al-Haj Moammad Yousuf Chowdhury Director 1.73%

Mr. Moshfeque Mamun Rizvi Director 0.13%

Investment Corporation of Bangladesh

to be represented by Mr. Humayun Kabir,

Managing Director Director 6.89%

Mr. Shaikh Mesbauddin Director 1.47%

Mr. Sahazada Syed Nizamuddin Ahmed IndipendentDirector 0.03%

iii) Shareholding of CFO, Company Secretary & Head of Internal Audit

Chief Financial Officer & his spouse and minor children N/A

Company Secretary & his spouse and minor children 0.01%

Head of Internal Audit & his spouse and minor children

iv) Share holding of Senior Executive ( Top five salried

persons other than CEO,CFO,CS,HIA )

1) Mr. Md. Nazmus Salehin DMD -

2) Mr. Md. Abul Hossain SEVP 0.0075%

3) Mr. A. F. Jamal Uddin SEVP 0.0021%

4) Mr. Zahirul Huq EVP -

5)Mr. Mahmud Sharif EVP 0.0045%

v) Shareholder(s) holding 10% or more voting interest

in the company as at 31.12.2009


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Annexure-IIStatus of compliance with the conditions imposed by the Securities and Exchange Commission's Notification No.SEC/CMRRCD/2006-158/Admin/02-08 dated 20 th February 2006:

Conditions

1.0 Board of Directors & its reports1.1 The members of the Board should not be less than 5 (five) and more than

20(Twenty)1.2 Appointment of Independent Non-shareholder Director

i) Independent Director : at least 1/10 th i.e. minimum oneii) Appointment of Independent Director by elected Directors

1.3 Chairman of the Board and Chief Executive Officer be different person withdifferent roles and resposibilities

1.4 Director's Report to include declarations ona. Fairness of Financial Statementsb. Maintenance of proper books of accountsc. Consistent application of Accounting Policies in preparation of Financial

Statementsd. Observance of Bangladesh Accounting Standards (BAS)e. Soundness and efficiency of Internal Controlf. Ability to continue as a going concerng. Significant deviations in operating results from last yearh. Presentation of key operating and financial data for at least last three

yearsI. Declaration of Dividend

j. Number of Board Meeting held during the year and attendance by eachDirectors

k. Shareholding pattern2.0 Appointment of CFO, Company Secretary etc.2.1 Appoinment of CFO,Company Secretary and Head of Internal Audit and defin-

ing their responsibilities2.1 Attendance of CFO and Company Secretary in the Board of Directors meet-

ing

Annexure-III

Conditions Compliance Status

3.0 Formation of Audit Committee & Its reporting

3.1 i) Number of members of Audit Committee 4ii) Inclusion of Independent Directors in the Audit Committee Yesiii) Fill the casual vacancy in Audit Committee Yes

3.2 i) Chairman of the Borad Audit Committee Al-haj Md. Shamsul Alamii) Qualification and experience of Audit Committee Chairman HSC & engaged business for 3 decade

3.3.1 i) Reporting by Audit Committee on i ts activit ies to the Board Furnished reports to the Boardii) Report to the Board by the Audit Committee on conflict of interest etc. NA

3.3.2 Report by Audit Committee on the qualified point to the SEC Audit Committee usually furnished reports to the Board

3.4 Report to the shareholders in the event of findings of certain Audit Committee reports only to the Boardoccurrences under condition 3.3.1 (ii) above

4.0 Statutory Auditors not to engage in :

i) Appraisal or valuation services Noii) Financial information systems design and implementation Yesiii) Book Keeping or other services related to financial statements Yesiv) Broker-dealer services Nov) Actuarial services Novi) Internal audit services Yesvii) Any other services that the Audit Committee determines Yes, on recovery of outstanding stuck-up loan

Compliance status

Complied Non-complied


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5 Years Financial Highlights

(Figure in million Taka)

Income Statement 2005 2006 2007 2008 2009

Interest Income 1,248 1,705 2,153 3,227 4,434

Interest Expenses 753 1,150 1,745 2,253 3,351

Net Interest Income 495 555 408 974 1,083

Non-Interest Income 354 501 645 938 1,112

Non-Interest Expense 232 323 356 443 664

Net Non-Interest Income 122 178 289 495 447

Profit before Provision & Tax 617 733 697 1,469 1,530

Provision for Loans & Assets 30 75 84 385 246

Profit after provision before Tax 587 658 613 1,084 1,284

Provision for Tax (Including Deferred Tax) 274 306 266 427 520

Profit after Tax 313 352 347 660 767Balance Sheet

Authorised Capital 1,250 3,000 3,000 3,000 8,800

Paid-up Capital 911 1,093 1,967 2,203 2,644

Shareholders' Equity (Capital & Reserve) 1,412 1,764 2,767 3,426 4,222

Borrowings 180 - - - -

Deposits 12,062 14,221 19,214 29,305 42,556

Other Liabilities 806 875 969 1,480 2,224

Liquied Assets 3,574 3,680 4,715 6,291 9,686

Money at call short notice 380 220 20 20 630

Loans & Advances 10,184 12,634 17,311 27,190 38,056

Investments 1,272 1,623 2,014 3,218 5,340Fixed Assets 55 72 94 115 179

Other Assets 629 475 829 614 1,081

Total Assets(excludingoff-balance sheet items) 14,442 16,861 22,949 34,210 49,001

Off-Balance Sheet exposure 6,523 7,557 9,806 13,423 13,860

Others Business

Import Business 16,145 18,270 26,155 35,689 40,411

Export Business 7,569 15,169 17,788 25,072 29,177

Capital Measures

Total Risk Weighted assets 10,480 11,498 16,083 24,780 34,939Core Capital(Tier I) 1,412 1,764 2,767 3,423 4,208

Supplementary Capital(Tier II) 103 153 226 399 531

Total capital 1,515 1,917 2,993 3,822 4,739

Tier I Capital Ratio 13.47% 15.34% 17.20% 13.81% 12.04%

Tier II Capital Ratio 0.98% 1.33% 1.41% 1.61% 1.52%

Total Capital Ratio 14.46% 16.67% 18.61% 15.42% 13.56%


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2005 2006 2007 2008 2009

Credit Quality

Volume of Non-performing loans 46 127 263 509 697% of NPLs to Total Loans & Advances 0.45% 0.98% 1.52% 1.87% 1.83%

Provision for Unclassified Loans 101 151 180 282 391

Provision for Classified Loans 27 52 61 245 365

Provision for Off-Balance Sheet Items - - 44 115 130

Share Information

Number of Share Outstanding 11 13 20 22 26Earning per Share(Taka) 28.58 26.83 17.62 24.83 28.90Book Value per Share(Taka) 100.00 100.00 100.00 100.00 100.00Market price per Share(Taka) 341.25 288.00 329.00 227.25 332.25Price Earning Ratio(Times) 10 11 19 8 11

Dividend per Share

Cash Dividend (%) - - - - -Bonus Share (%) 20% 20% 12% 20% 20%Rights Share Issue - - 2:1 - -

Operating Performance Ratio

Net Interest Margin onaverage earning assets 4.40% 4.07% 2.33% 3.72% 3.27%

Net Non-Interest Margin onaverage earning assets 1.08% 1.30% 1.65% 1.89% 1.35%

Credit / Deposit Ratio (%) 85% 89% 90% 93% 89%

Return on Equity(ROE) (%) 24.91% 22.16% 15.32% 21.32% 20.06%

Return on Assets(ROA) (%) 2.16% 2.40% 1.74% 1.95% 1.84%Yield on average advance (%) 13.88% 14.94% 14.38% 14.50% 13.59%

Total cost of Fund

Cost of Deposit (%) 9.49% 8.89% 9.67% 9.29% 9.33%Administrative cost (%) 2.23% 2.55% 1.99% 1.69% 1.57%

Other Information

Number of Branches 22 26 29 32 41

Urban 18 21 23 25 32Rural 4 5 6 7 9

Number of SME & Agriculture Branches - - - 3 6

Number of Employees 449 556 610 734 821Number of Shareholders 5 6 16 22 26Number of Foreign Correspondents 20 21 22 21 21Average earning assets 11,254 13,649 17,493 26,194 33,087Average Total assets 12,752 15,647 19,905 28,580 41,605Average Deposits 10,397 13,142 16,718 24,260 35,930Average Advance 8,993 11,409 14,973 22,251 32,623Average Equity 1,257 1,589 2,266 3,096 3,824


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Auditors Report

To The Shareholders of Standard Bank Limited

We have audited the accompanying Balance sheet of the Standard Bank Limited as of December 31,2009 and the related profit & loss account and the statement of cash flows, statement of changes inequity, statement of liquidity and notes to the accounts for the year then ended. The preparation ofthese financial statements is the responsibility of the Banks management. Our responsibility is toexpress an opinion on these financial statements based on our audit.

Scope:

Except as discussed in the following paragraph, we conducted our audit in accordance withBangladesh Standards on Auditing (BSA). Those standards require that we plan and perform the auditto obtain reasonable assurance about whether the financial statements are fee of material misstate-ment. An audit includes examining, on a test basis, evidence supporting-the amounts and disclosures

in the financial statements. An audit also includes assessing the accounting principals used and signif-icant estimates made by management, as well as evaluating the overall financial statement presenta-tion. We believe that our audit provides a reasonable basis for our opinion.

Opinion:

Income tax provision has been made without considering tax on inadmissible provision for bad anddoubtful debts shown under note no 34 of the annexed finanacial statements though required underIncome Tax Ordinance 1984.

In our opinion, except for the effect on the financial statements of the matter referred to in the preced-ing paragraph, the financial statements, prepared in accordance with Bangladesh AccountingStandards (BAS), give a true and fair view of the state of the Banks affairs as of December 31, 2009,

and of the results of its operations and its cash flow for the year then ended and comply with the appli-cable sections of the Bank Company act 1991, the rules and regulations issued by the BangladeshBank, the Companies act 1994, the Securities and Exchange Rules 1987 and other applicable lawsand regulations.

Subject to the above, we also report that:

i) we have obtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purposes of our audit and made due verification there of;

ii) in our opinion, proper books of account as required by law have been kept by the Bank so faras it appeared from our examination of those books and proper returns adequate for the pur-poses of our audit have been received from branches not visited by us;

iii) the Banks balance sheet and profit and loss account dealt with by the report are in agreementwith the books of account and returns;

iv) the expenditure incured was for the purposes of the company's business;

v) the financial position of the Bank at December 31, 2009 and the profit for the period then endedhave been properly reflected in the financial statements; statements have been prepared inaccordance with the generally accepted accounting principles;


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vi) the financial statements have drawn up in conformity with the Bank Companies Act 1991 and

in accordance with the accounting rules and regulations issued by the Bangladesh Bank;

vii) adequate provisions have been made for loans and advances which are in our opinion, doubt-

ful of recovery;

viii) the financial statements conform to the prescribed standards set in the accounting regulations

issued by the Bangladesh Bank after consultation with the professional accounting bodies of

Bangladesh;

ix) the records and statements submitted by the branches have been properly maintained and

consolidated in the financial statements;

x) the information and explanations required by us have been received and found satisfactory.

xi) 80% of the risk-weighted assets of the branches allocated for audit have been audited by us.

xii) We have spent approximately 3,100 man hours for the audit of books of account.

xiii) Guidelines of Core Risk Management issued by Bangladesh Bank vide BRPD Circular # 17

dated 7/10/2003 were not fully complied with.

Dated, Dhaka Howladar Yunus & Co.March 25, 2010 Chartered Accountants

Hon'ble Chairman Mr. Kazi Akramuddin Ahmed seen signing the Balance Sheet of the Bank for the year ended as on 31stDecember, 2009


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Standard Bank LimitedConsolidated Balance Sheet as at 31st December, 2009

2009 2008

Notes Taka Taka

PROPERTY & ASSETS

CASH 3(a) 3,077,120,314 2,406,442,979

Cash in Hand (including foreign currencies) 294,146,477 230,201,606Balance with Bangladesh Bank & its agent Bank (including Foreign Currencies) 2,782,973,837 2,176,241,373

BALANCE WITH OTHER BANKS AND FINANCIAL INSTITUTIONS 4(a) 638,246,698 647,273,372

In Bangladesh 44,542,377 13,566,465Outside Bangladesh 593,704,321 633,706,907

MONEY AT CALL AND ON SHORT NOTICE 05 630,000,000 20,000,000INVESTMENTS 6(a) 5,340,338,439 3,217,697,420

Government 4,714,071,198 2,841,122,911Others 626,267,241 376,574,509

LOANS AND ADVANCES / INVESTMENTS 7(a) 38,055,753,147 27,189,943,132

Loans, Cash Credits, Over Draft etc./ Investments 36,723,327,850 25,970,080,995Bills Purchased and Discounted 1,332,425,297 1,219,862,137

FIXED ASSETS INCLUDING PREMISES, FURNITURE & FIXTURE 8(a) 178,511,495 115,215,360OTHER ASSETS 9(a) 1,080,929,421 613,827,625NON-BANKING ASSETS - -

TOTAL ASSETS 49,000,899,514 34,210,399,888LIABILITIES & CAPITALLiabilitiesBorrowings from other banks, financial Institutions and agents 10 - -DEPOSITS AND OTHER ACCOUNTS 11(a) 42,555,505,380 29,304,739,597

Current / Al-Wadeeah Deposits & Other Deposits 4,946,955,629 4,385,574,214Bills Payable 453,829,597 328,982,796Savings Bank / Mudaraba Savings Deposits 1,772,761,675 1,084,991,328Short Term Deposits / Mudaraba Short Term Deposits 1,722,311,722 1,223,789,619

Fixed Deposits / Mudaraba Term Deposits 31,713,109,811 20,912,175,719Deposits Under Schemes / Mudaraba Deposit Schemes 1,946,536,946 1,369,225,921

OTHER LIABILITES 12(a) 2,223,670,282 1,479,691,190

TOTAL LIABILITIES 44,779,175,662 30,784,430,787CAPITAL / SHAREHOLDERS' EQUITYPaid-up Capital 13 2,644,088,832 2,203,407,360Statutory Reserve 14(a) 1,033,683,881 776,833,978General Reserve 15 20,000,000 -Revaluation Reserve on Investment 15(b) 14,126,086 2,620,849Bonus Share - -Surplus in Profit and Loss Account/ Retained earnings 16(a) 509,825,053 443,106,915

TOTAL SHAREHOLDERS' EQUITY 4,221,723,852 3,425,969,101

TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 49,000,899,514 34,210,399,888

These financial statements should be read in conjunction with annexed notes

Managing Director Director Vice Chairman Chairman

Signed as per our Annexed report of same Date

Dated, Dhaka HOWLADAR YUNUS & CO.March 25, 2010 Chartered Accountants


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Standard Bank LimitedConsolidated Profit & Loss Account for the year ended 31st December, 2009

December 31, 2009 December 31, 2008

Notes Taka Taka

Interest Income / Profit on Investment 18(a) 4,433,634,888 3,226,936,767Interest / Profit paid on Deposits & Borrowings etc. 19(a) 3,351,065,292 2,252,643,548

Net Interest / Net Profit on Investments 1,082,569,596 974,293,219

Investment Income 20 386,151,427 245,015,223Commission, Exchange Earnings & Brokerage 21(a) 570,906,395 557,612,716Other Operating Income 22(a) 154,643,061 134,649,019

TOTAL OPERATING INCOME ( A ) 2,194,270,479 1,911,570,177

Salary & Allowances 23(a) 323,411,763 248,014,777Rent, Taxes, Insurance, Electricity etc. 24(a) 67,963,166 49,835,549Legal Expenses 25(a) 1,576,897 810,824Postage, Stamp, Telecommunication etc. 26(a) 18,094,538 15,506,852Stationery, Printing, Advertisement etc. 27(a) 36,240,577 23,628,403

Managing Director's Salary & Fees 28 3,785,000 2,540,000Directors' Fee & Other Benefits 29 5,321,745 3,416,942Audit Fees 30 407,334 150,000Charges on Loan Losses 31 65,530,932 -Depreciation and Repair of Bank's Assets 32(a) 38,679,801 28,353,741Other Expenses 33(a) 103,481,343 70,816,416

TOTAL OPERATING EXPENSES ( B ) 664,493,096 443,073,504

Profit / (Loss ) Before Provision ( C ) = ( A - B ) 1,529,777,383 1,468,496,673

Specific Provision 34 120,706,000 290,229,135General Provision 109,479,677 -Provision for Off-Balance Sheet items 15,342,193 71,761,531Provision for Diminution in Value of Investments - 22,507,574Other Provision - -

Total Provisions ( D ) 245,527,870 384,498,240

Total Profit / (Loss) before Taxes (E)=( C - D ) 1,284,249,513 1,083,998,433Provision for Taxation 35(a) 520,000,000 427,402,421

Current Tax 520,000,000 415,000,000Deferred Tax - 12,402,421

Net Profit / (Loss) after Taxation : 764,249,513 656,596,012Retained earnings brought forward from previous year 2,425,443 3,310,590Net Profit available for distribution 766,674,956 659,906,602Appropriations :Statutory Reserve 14(a) 256,849,903 216,799,687Proposed Bonus Shares - -

Retained Earnings Carried Forward 509,825,053 443,106,915

Earning per Share (EPS): 36(a) 28.90 24.83






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Standard Bank LimitedConsolidated Cash Flow Statement for the year ended 31st December, 2009

2009 2008

Notes Taka TakaA) CASH FLOW FROM OPERATING ACTIVITIES

Interest receipts in cash 4,436,832,082 3,233,085,757Interest payments in cash (3,035,783,421) (2,252,643,548)Dividend receipts 3,518,702 5,382,950Income from Investment 382,632,725 239,632,273Fee and commission receipts in cash 286,628,908 275,043,801Recoveries on loans previously written off - -Cash payments to employees (327,196,763) (250,554,777)Cash payments to suppliers (36,240,577) (23,628,403)Income taxes paid (449,356,188) (285,807,412)Receipts from other operating activities 37 (a) 154,643,061 134,649,019Payments for other operating activities 38 (a) (206,159,571) (150,367,360)Cash generated from operating activities beforechanges in operating assets and liabilities 1,209,518,958 924,792,300

Increase / (Decrease) in operating assets and liabilities

Statutory deposits - -Purchase of trading securit ies (249,692,732) (349,993,673)Loans and advances to other banks - -

Loans and advances to customers (10,931,340,947) (9,884,064,313)Other assets 39(a) (20,942,801) 191,536,010Deposits from other banks - 1,790,000,000Deposits from customers 12,935,483,912 8,300,985,757Other liabilities account of customers - -Trading liabilities - -Other liabilities 40(a) (4,696,602) 7,674,024

Net cash flow from operating activities (A) 2,938,329,788 980,930,105

B) CASH FLOW FROM INVESTING ACTIVITIESProceeds from sale of non-trading securities - -Payments for purchase of securities - -Purchase of property, plant & equipment (89,513,564) (39,507,911)Sale of property, plant & equipment - -Purchase / sale of subsidiary - -

Net cash flow from investing activities (B) (89,513,564) (39,507,911)

C) CASH FLOW FROM FINANCING ACTIVITIESReceived from issue of loan capital and debt security - -Received for redemption of loan capital and debt security - -

Receipts from issue of ordinary shares - -Dividends paid - -Net cash flow from financing activities (C) - -

D) NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS (A+B+C) 2,848,816,224 941,422,194

E) EFFECTS OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS 284,277,487 282,568,915

F) CASH AND CASH EQUIVALENTS AT BEGINNING OF THE YEAR 5,912,218,413 4,688,227,304

G) CASH AND CASH EQUIVALENTS AT END OF THE YEAR (D+E+F) 9,045,312,124 5,912,218,413

CASH AND CASH EQUIVALENTS AT END OF THE YEARCash in hand (including foreign currencies) 294,146,477 230,201,606Balance with Bangladesh Bank and its agent bank(s)( including foreign currencies) 2,782,973,837 2,176,241,373Balance with other Banks and financial institutions Note-4( c ) 638,246,698 647,273,372Money at Call and Short Notice 630,000,000 20,000,000Govt. Security/Reverse repo 4,698,586,312 2,837,419,762Prize Bonds 1,358,800 1,082,300

9,045,312,124 5,912,218,413






16/26

66

Standard Bank LimitedConsolidated Statement of Changes in Equity for the year ended 31st December, 2009

Particulars Paid up Statutory General Revaluation Profit & Loss TotalCapital Reserve Reserve gain/loss on surplus A/c Taka

investment

Balance as on 1-1-2009 2,203,407,360 776,833,978 - 2,620,849 443,106,915 3,425,969,102

Changes in accounting policy - - - - - -

Restated Balance 2,203,407,360 776,833,978 - 2 ,620,849 443,106,915 3,425,969,102

Surplus/Deficit on revaluationof properties - - - - - -

Adjustment of last year revaluationgain on investments - - - (2,620,849) - (2,620,849)

Surplus/Deficit on revaluationof investment - - - 14,126,086 - 14,126,086

Currency translation difference - - - - - -

Net gains and losses not

recongnised in the income statement - - - - - -

Excess provision for diminution invalue of investment - - 20,000,000 - - 20,000,000

Net profit for the period - - - - 764,249,513 764,249,513

Dividends (Bonus shares) 440,681,472 - - - (440,681,472) -

Issue of Right Shares - - - - - -

Appropriation made during the year - 256,849,903 - - (256,849,903) -

Balance as on 31-12-2009 2,644,088,832 1,033,683,881 20,000,000 14,126,086 509,825,053 4,221,723,852






17/26

67

Standard Bank LimitedBalance Sheet as at 31st December, 2009

2009 2008

Notes Taka Taka

PROPERTY & ASSETSCASH 03 3,068,753,069 2,406,442,979

Cash in Hand (including foreign currencies) 285,779,232 230,201,606Balance with Bangladesh Bank & its agent Bank (includingForeign Currencies) 2,782,973,837 2,176,241,373

BALANCE WITH OTHER BANKS AND FINANCIAL INSTITUTIONS 04 638,246,698 647,273,372In Bangladesh 44,542,377 13,566,465Outside Bangladesh 593,704,321 633,706,907

MONEY AT CALL AND ON SHORT NOTICE 05 630,000,000 20,000,000INVESTMENTS 06 5,359,121,941 3,217,697,420Government 4,714,071,198 2,840,040,611Others 645,050,743 377,656,809

LOANS AND ADVANCES / INVESTMENTS 07 38,055,753,147 27,189,943,132Loans, Cash Credits, Over Draft etc./ Investments 36,723,327,850 25,970,080,995Bills Purchased and Discounted 1,332,425,297 1,219,862,137

FIXED ASSETS INCLUDING PREMISES, FURNITURE & FIXTURE 08 172,847,893 115,215,360OTHER ASSETS 09 1,077,598,945 613,827,625NON-BANKING ASSETS - -

TOTAL ASSETS 49,002,321,693 34,210,399,888

LIABILITIES & CAPITAL

LiabilitiesBorrowings from other banks, financial Institutions and agents 10 - -

DEPOSITS AND OTHER ACCOUNTS 11 42,548,116,057 29,304,739,597

Current / Al-Wadeeah Deposits & Other Deposits 4,946,955,629 4,385,574,214Bills Payable 453,829,597 328,982,796Savings Bank / Mudaraba Savings Deposits 1,772,761,675 1,084,991,328Short Term Deposits / Mudaraba Short Term Deposits 1,722,311,722 1,223,789,619Fixed Deposits / Mudaraba Term Deposits 31,705,720,488 20,912,175,719Deposits Under Schemes / Mudaraba Deposit Schemes 1,946,536,946 1,369,225,921

OTHER LIABILITES 12 2,223,670,282 1,479,691,190

TOTAL LIABILITIES 44,771,786,339 30,784,430,787

CAPITAL / SHAREHOLDERS' EQUITY

Paid-up Capital 13 2,644,088,832 2,203,407,360Statutory Reserve 14 1,035,446,181 776,833,978General Reserve 15 20,000,000 -Revaluation Reserve on Investment 15(a) 14,126,086 2,620,849Bonus Share - -Surplus in Profit and Loss Account/ Retained earnings 16 516,874,255 443,106,914

TOTAL SHAREHOLDERS' EQUITY 4,230,535,354 3,425,969,101

TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 49,002,321,693 34,210,399,888






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68

Standard Bank LimitedBalance Sheet as at 31st December, 2009


Notes Taka Taka

OFF-BALANCE SHEET ITEMS

CONTINGENT LIABILITIES

Acceptances and Endorsements 17.1 4,612,826,972 994,059,432

Letters of Guarantee 17.2 2,443,391,420 1,908,732,672

Irrevocable Letters of Credit 17.3 6,014,153,980 8,633,361,079

Bills for Collection 17.4 789,499,946 244,276,113

Other Contingent Liabilities 17.5 - 175,000

TOTAL: 13,859,872,318 11,780,604,296

OTHER COMMITMENTS:

Documentary credits and short term trade-related transactions - -

Forward assets purchased and forward deposits placed - -

Undrawn note issuance and revolving underwriting facilities - -

Undrawn formal standby facilities, credit lines and other commitments - -

TOTAL OFF - BALANCE SHEET ITEMS 13,859,872,318 11,780,604,296






19/26

69

Standard Bank LimitedProfit & Loss Account for the year ended 31st December, 2009


Notes Taka Taka

Interest Income / Profit on Investment 18 4,433,634,888 3,226,936,767Interest / Profit paid on Deposits & Borrowings etc. 19 3,351,065,292 2,252,643,548

Net Interest / Net Profit on Investments 1,082,569,596 974,293,219

Investment Income 20 386,151,427 245,015,223Commission, Exchange Earnings & Brokerage 21 568,443,503 557,612,716Other Operating Income 22 154,643,061 134,649,019

TOTAL OPERATING INCOME ( A ) 2,191,807,587 1,911,570,177

Salary & Allowances 23 318,598,034 248,014,777Rent, Taxes, Insurance, Electricity etc. 24 65,456,266 49,835,549Legal Expenses 25 1,139,510 810,824Postage, Stamp, Telecommunication etc. 26 17,785,523 15,506,852Stationery, Printing, Advertisement etc. 27 35,753,279 23,628,403

Managing Director's Salary & Fees 28 3,785,000 2,540,000Directors' Fee & Other Benefits 29 5,321,745 3,416,942Audit Fees 30 300,000 150,000Charges on Loan Losses 31 65,530,932 -Depreciation and Repair of Bank's Assets 32 37,507,711 28,353,741Other Expenses 33 102,040,702 70,816,416

TOTAL OPERATING EXPENSES ( B ) 653,218,702 443,073,504

Profit / (Loss ) Before Provision ( C ) = ( A - B ) 1,538,588,885 1,468,496,673

Specific Provision 34 120,706,000 290,229,135General Provision 109,479,677 -Provision for Off-Balance Sheet Items 15,342,193 71,761,531Provision for Diminution in Value of Investments - 22,507,574Other Provision - -

Total Provisions ( D ) 245,527,870 384,498,240

Total Profit / (Loss) before Taxes (E)=( C - D ) 1,293,061,015 1,083,998,433Provision for Taxation 35 520,000,000 427,402,421

Current Tax 520,000,000 415,000,000Deferred Tax - 12,402,421

Net Profit / (Loss) after Taxation: 773,061,015 656,596,012Retained earnings brought forward from previous year 2,425,443 3,310,590

Net Profit available for distribution 775,486,458 659,906,602

Appropriations :

Statutory Reserve 258,612,203 216,799,687Proposed Bonus Shares - -

Retained earnings carried forward 516,874,255 443,106,915

Earning per Share (EPS): 36 29.24 24.83






20/26


21/26

71

Standard Bank LimitedStatement of Changes in Equity for the year ended 31st December, 2009

Particulars Paid up Statutory General Revaluation Profit & Loss TotalCapital Reserve Reserve gain/loss on surplus A/c Taka

investments

Balance as on 1-1-2009 2,203,407,360 776,833,978 - 2,620,849 443,106,915 3,425,969,102

Changes in accounting policy - - - - - -

Restated Balance 2,203,407,360 776,833,978 - 2 ,620,849 443,106,915 3,425,969,102

Surplus/Deficit on revaluationof properties - - - - - -

Adjustment of last year revaluationgain on investments - - - (2,620,849) - (2,620,849)

Surplus/Deficit on revaluationof investment - - - 14,126,086 - 14,126,086

Currency translation difference - - - - - -

Net gains and losses notrecongnised in the income statement - - - - - -

Excess provision for diminution invalue of investment - - 20,000,000 - - 20,000,000

Net profit for the period - - - - 773,061,015 773,061,015

Dividends (Bonus shares) 440,681,472 - - - (440,681,472) -

Issue of Right Shares - - - - - -

Appropriation made during the year - 258,612,203 - - (258,612,203) -

Balance as on 31-12-2009 2,644,088,832 1,035,446,181 20,000,000 14,126,086 516,874,255 4,230,535,354






22/26

72

Standard Bank LimitedLiquidity Statement (Asset and Liability Maturity Analysis) for the year ended 31st December, 2009

Upto 1 - 3 3 - 12 1 - 5 More TotalParticulars 01 Month Months Months Years than5 Years

Assets:

Cash in hand 3,068,753,069 - - - - 3,068,753,069

Balance with other banks

and financial institutions 620,246,698 - 18,000,000 - - 638,246,698

Money at call & onshort notice 630,000,000 - - - - 630,000,000

Investment 646,409,543 29,989,000 1,346,440,398 2,921,083,000 415,200,000 5,359,121,941

Loans and Advances 734,742,672 10,871,356,184 6,111,375,363 17,067,047,928 3,271,231,000 38,055,753,147

Fixed assets including

premises, furniture

and fixtures - - - 97,187,287 75,660,606 172,847,893

Other assets 14,777,585 924,316,235 9,868,206 127,760,308 876,611 1,077,598,945Non-banking assets - - - - - -

Total Assets 5,714,929,567 11,825,661,419 7,485,683,967 20,213,078,523 3,762,968,217 49,002,321,693

Liabilities:

Borrowing from Bangladesh

Bank, other banks, financial

institutions and agents - - - - - -

Deposits 3,870,334,849 11,411,187,428 5,684,700,829 18,852,686,740 2,729,206,211 42,548,116,057Other Accounts - - - - - -

Provision and other

liabili ties 4,824,101 2,343,456 40,000,000 1,214,740,242 961,762,483 2,223,670,282

Total Liabilities 3,875,158,950 11,413,530,884 5,724,700,829 20,067,426,982 3,690,968,694 44,771,786,339

Net Liquidity Gap 1,839,770,617 412,130,535 1,760,983,138 145,651,541 71,999,523 4,230,535,354

Net result of the liquidity statement represents the shareholders equity of the Bank.





23/26

73

Standard Bank LimitedBalance Sheet of Islami Banking Window as at 31st December, 2009

2009 2008

Notes Taka Taka

PROPERTY & ASSETSCASH 495,100 -

Cash in Hand (including foreign currencies) 495,100 -Balance with Bangladesh Bank & its agent Bank(including foreign currencies) - -

BALANCE WITH OTHER BANKS AND FINANCIAL INSTITUTIONS 20,000,000 -

In Bangladesh 20,000,000 -Outside Bangladesh - -

MONEY AT CALL AND ON SHORT NOTICE - - INVEST-MENTS - -

Government - -Others - -

INVESTMENTS - -

General Investment - -Bills Purchased and Discounted - -

FIXED ASSETS INCLUDING PREMISES, FURNITURE & FIXTURE - -

OTHER ASSETS - -

NON-BANKING ASSETS - -

TOTAL ASSETS 20,495,100 -


LiabilitiesBorrowings from other banks, financial institutions and agents - -

DEPOSITS AND OTHER ACCOUNTS 20,495,100 -

Current / Al-Wadeeah Deposits & Other Deposits 62,500 -Bills Payable - -Savings Bank / Mudaraba Savings Deposits 429,600 -Short Term Deposits / Mudaraba Short Term Deposits - -Fixed Deposits / Mudaraba Term Deposits 20,000,000 -Deposits Under Schemes / Mudaraba Deposit Schemes 3,000 -

OTHER LIABILITES - -

TOTAL LIABILITIES 20,495,100 -

OFF-BALANCE SHEET ITEMS

CONTINGENT LIABILITIESAcceptances and Endorsements -Letters of Guarantee - -Irrevocable Letters of Credit - -Bills for Collection - -Other Contingent Liabilities - -

OTHER COMMITMENTS - -

TOTAL OFF - BALANCE SHEET ITEMS - -


See annexed auditors' report to the shareholders of the date



24/26

74

Standard Bank LimitedProfit & Loss Account of Islami Banking Window for the year ended 31st December, 2009

2009 2008

Notes Taka Taka

Interest Income / Profit on Investment - -Interest / Profit paid on Deposits & Borrowings etc. - -

Net Interest / Net Profit on Investments - -

Investment Income - -Commission, Exchange Earnings & Brokerage - -Other Operating Income - -

TOTAL OPERATING INCOME ( A ) - -

Salary & Allowances - -Rent, Taxes, Insurance, Electricity etc. - -Legal Expenses - -Postage, Stamp, Telecommunication etc. - -Stationery, Printing, Advertisement etc. - -Managing Director's Salary & Fees - -Directors' Fee & Other Benefits - -Audit Fees - -Charges on Loan Losses - -Depreciation and Repair of Bank's Assets - -Other Expenses - -

TOTAL OPERATING EXPENSES ( B ) - -

Profit / (Loss ) Before Provision ( C ) = ( A - B ) - -

Specific Provision - -General Provision - -

Provision for Off-Balance Sheet Items - -Provision for Diminution in Value of Investments - -Other Provision - -

Total Provision ( D ) - -

Total Profit / (Loss) before Taxes (E)=( C - D ) - -






25/26

75

Standard Bank LimitedBalance Sheet of Merchant Banking and Investment Division as at 31st December, 2009

2009 2008

Notes Taka Taka

PROPERTY & ASSETS

CASH - -

Cash in Hand (including foreign currencies) - -Balance with Bangladesh Bank & its agent Bank(including foreign currencies) - -

BALANCE WITH OTHER BANKS AND FINANCIAL INSTITUTIONS 9,632,307 -

In Bangladesh 9,632,307 -Outside Bangladesh - -

MONEY AT CALL AND ON SHORT NOTICE - -

INVESTMENTS 334,937,255 -

Government - -Others 334,937,255 -

LOANS AND ADVANCES / INVESTMENTS 822,450,864 -

Loans, Cash Credits, Over Draft etc./ Investments 822,450,864 -Bills Purchased and Discounted - -

FIXED ASSETS INCLUDING PREMISES, FURNITURE & FIXTURE 7,065,886 -

OTHER ASSETS 849,650 -NON-BANKING ASSETS - -

TOTAL ASSETS 1,174,935,962


LIABILITIES

Borrowings from Standard Bank Limited 1,100,842,380 -DEPOSITS AND OTHER ACCOUNTS 7,004,395 -

Current / Al-Wadeeah Deposits & Other Deposits 7,004,395 -Bills Payable - -Savings Bank / Mudaraba Savings Deposits - -Short Term Deposits / Mudaraba Short Term Deposits - -Fixed Deposits / Mudaraba Term Deposits - -Deposits Under Schemes / Mudaraba Deposit Schemes - -

OTHER LIABILITES 1,808,000 -

Total profit/(loss) before taxes 65,281,187 -

TOTAL LIABILITIES 1,174,935,962 -






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76

2009 2008

Notes Taka Taka

Interest Income 16,276,253 -

Interest paid on Deposits & Borrowings etc. 18,741,504 -

Net Interest / Net Profit on Investments (2,465,251) -

Investment Income 54,582,868 -

Settlement Fees 10,453,963 -

Other Operating Income 7,732,108 -

TOTAL OPERATING INCOME ( A ) 70,303,688 -

Salary & Allowances 2,123,035 -

Rent, Taxes, Insurance, Electricity etc. 324,300 -

Legal Expenses - -

Postage, Stamp, Telecommunication etc. 8,000 -

Stationery, Printing, Advertisement etc. 99,764 -

Managing Director's Salary & Fees - -

Directors' Fee & Other Benefits - -

Depreciation and Repair of Bank's Assets 249,268 -

Other Expenses 2,218,134 -

TOTAL OPERATING EXPENSES ( B ) 5,022,501 -

Profit / (Loss ) Before Provision ( C ) = ( A - B ) 65,281,187 -

Specific Provision - -

General Provision - -

Provision for Diminution in Value of Investments - -

Other Provision - -

Total Provisions ( D ) - -

Total Profit / (Loss) before Taxes (E)=( C - D ) 65,281,187 -

Standard Bank LimitedProfit and Loss Account of Merchant Banking and Investment Division for the year ended December, 2009





9 balance sheet standard bank

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