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National Credit and Commerce Bank Limited Notes to the Financial Statements As at and for the period ended June 30, 2011
1.1 Status of the bank
1.1.1 The National Credit and Commerce Bank Limited (NCCBL) was formed as a public limited banking company incorporated in Bangladesh with primary objective to carry on all kinds of banking business in
and outside Bangladesh.
1.1.2 The registered office of the Bank is located at 7-8, Motijheel Commercial Area, Dhaka-1000. It has 81 branches all over the Bangladesh and the bank has no overseas branches as at June 30, 2011. It carries
out all banking activities through it branches in Bangladesh. The Bank went for Initial Public Offering in 1999 and its share is listed with Dhaka and Chittagong Stock Exchange Limited as a publicly traded
company for its general class of shares.
1.1.3 The bank commenced its banking business with sixteen branches from May 17, 1993.
1.1.4 Principal activities
The commercial banking business activities of the bank encompass a wide range of services including
accepting deposits, making loans, discounting bills, conducting money transfer, foreign exchange
transactions and performing other related services such as safekeeping collection, issuing guarantees, acceptances and letter of credits through its branches in Bangladesh.
1.1.5 NCCB Securities and Financial Services Limited
NCCB Securities and Financial Services Limited is a subsidiary company of National Credit and Commerce
Bank Limited incorporated on April 04, 2010 as a private limited company under the Companies Act-1994 vide Certificate of incorporation no. C-83683/10. The main objective of the company is to act as a full
fledged Stock Broker & Stock Dealer to execute buy and sell order and to maintain own portfolio as well
as customer portfolio under the discretion of customers. The company also performs the other activities relates to Capital Market as and when regulations permits the company to carry out activities as per their
guidelines. Financial Statements of the company shown in Annexure-M
1.2 Significant accounting policies and basis of preparation of financial statements
1.2.1 Basis of accounting
Statement of compliance
The financial statements of the Group and the Bank are made up to June 30, 2011 and are prepared
under the historical cost convention except investments, land & properties and in accordance with the “First Schedule Section 38(4) of the Bank Companies Act, 1991, BRPD Circular # 14 dated 25 June, 2003,
other Bangladesh Bank Circulars, Bangladesh Accounting Standards and Bangladesh Financial Reporting Standards, The Companies Act, 1994, The Securities and Exchange Rules 1987, Dhaka & Chittagong
Stock Exchanges listing regulations and other laws and rules applicable in Bangladesh.
1.2.2 Basis of consolidation
The consolidated financial statements include the financial statements of NCC Bank Limited and its
subsidiary company NCCB Securities and Financial Services Limited made up to June 30, 2011. The
consolidated financial statements have been prepared in accordance with Bangladesh Accounting Standards 27-“Consolidated &Separate Financial Statements”.
Transactions eliminated on consolidation
All intra-group transactions, balances, income and expenses are eliminated on consolidation. Profit and
loss resulting from transactions is also eliminated on consolidation.
1.2.3 Use of estimates and judgments
The preparation of financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets,
liabilities, income and expenses. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised and in any future periods affected.
1.2.4 Going concern
The financial statements have been prepared on a going concern basis, which contemplate the realization
of assets and the satisfaction of liabilities in the normal course of business.
1.2.5 Functional and presentation currency
The financial statements are presented in Bangladeshi Taka which is the bank's functional currency
except as indicated.
1.2.6 Materiality & aggregation
Each significant material item as considered by the management has been presented separately in the
financial statements. No amount has been set off unless the bank has a legal right to set off the amounts is intended to settle on net basis. Income and expenses are presented on a net basis only when
permitted by the relevant Accounting Standards.
1.2.7 Foreign currency transaction
a) Foreign currencies translation
Foreign currency transactions are converted into equivalent taka using the ruling exchange rates on the
dates of respective transactions as per BAS-21 “The Effects of Changes in Foreign Exchange Rates”. Assets and liabilities in foreign currencies are converted into taka at weighted average rate of inter-bank
market as determined by Bangladesh Bank on the closing date of every month.
b) Commitments
Contingent liabilities / commitments for letters of credit and letters of guarantee denominated in foreign currencies are expressed in Taka terms at the rates of exchange ruling on the balance sheet date.
c) Translation gains and losses
The resulting exchange transaction gains and losses are included in the profit and loss account.
1.2.8 Cash flow statement
Cash flow statement has been prepared in accordance with the Bangladesh Accounting Standard-7 “Cash
Flow Statements” under direct method as recommended in the BRPD Circular No. 14, dated June 25, 2003 issued by the Banking Regulation & Policy Department of Bangladesh Bank.
1.2.9 Liquidity statement
The liquidity statement of assets and liabilities as on the reporting date has been prepared on residual
maturity term as per the following bases.
i) Balance with other banks and financial institutions, money at call and short notice, etc. are shown on the basis of their maturity term;
ii) Investments are on the basis of their respective maturity; iii) Loans and advances / investments are on the basis of their repayment schedule;
iv) Fixed assets are on the basis of their useful lives; v) Other assets are on the basis of their realization / amortization;
vi) Borrowing from other banks, financial institutions and agents, etc. are as per their maturity /
repayment terms; vii) Deposits and other accounts are on the basis of their maturity term and past trend of withdrawal
by the depositors; viii) Provisions and other liabilities are on the basis of their payment / adjustments schedule.
1.2.10 Reporting period
These financial statements cover for the period from January 01, 2011 to June 30, 2011.
1.3 Assets and basis of their valuation
1.3.1 Cash and cash equivalents
Cash and cash equivalents include notes and coins on hand, unrestricted balances held with Bangladesh
Bank and highly liquid financial asset which are subject to insignificant risk of changes in their fair value and are used by the bank management for its short-term commitments.
1.3.2 Loans and advances
a) Loans and advances of conventional banking in branches are stated in the balance sheet on gross
basis.
b) Interest is calculated on a daily product basis but charged and accounted for on accrual basis. Interest on classified loans and advances are kept in suspense account as per Bangladesh Bank
instructions and such interest is not accounted for as income until realized from borrowers (please refer Note- 9.10 (x) Interest is not charged on bad and loss loans as per guidelines of Bangladesh
Bank. Records of such interest amounts are kept in separate memorandum accounts.
c) Provision for loans and advances are made on the bases of year-end review by the management following instructions contained in Bangladesh Bank BCD Circular no. 34 dated 16 November 1989,
BCD Circular no. 20 dated 27 December 1994, BCD Circular no. 12 dated 4 September 1995, BRPD Circular 16 dated 6 December 1998, BRPD Circular no. 9 dated 14 May 2001, BRPD Circular no. 09
of August 2005 and BRPD Circular no.17 dated 06 December 2005. The classification rates are
given below:
Particulars Rate
General provisions on unclassified general loans and advances 1%
General provision on unclassified small enterprise financing 2% General provision on unclassified loans for housing finance and on
loans for professionals
2%
General provision on unclassified consumer financing other than
housing finance and loans for professionals
5%
General provision on special mention account 5%
Specific provision on substandard loans and advances 20%
Specific provision on doubtful loans and advances 50% Specific provision on bad / loss loans and advances 100%
d) Loans and advances with no realistic prospect of recovery have been written off against which
full provisions made and legal cases initiated but pending. Detailed memorandum records for all
such written off accounts are maintained without reducing the bank’s claim.
1.3.3 Investments
All investment securities are initially recognized at cost, being fair value of the consideration given,
including acquisition charges associated with the investment. Premiums are amortized and discounts accredited, using the effective yield method and are taken to discount income. The valuation methods of
investments used are:
Held to maturity (HTM)
Investments which have ‘fixed or determinable payments’ and are intended to be ‘held to maturity’ other
than those that meet the definition of ‘held at amortized cost-others’ are classified as held to maturity. These investments are subsequently measured at present value as per Bangladesh Bank
guideline. Investments in securities have been revalued as mark to market as at June 30, 2011. The gain of revaluation from the held to maturity securities has been shown in the statement of changes in
equity of June 30, 2011.
Held for trading (HFT)
Investments classified in this category are acquired principally for the purpose of selling or repurchasing
in short-trading or if designated as such by the management after initial recognition, investments are measured at fair value and any change in the fair value is recognized.
Value of investments has been enumerated as follow:
Item Applicable accounting Value
Government Treasury Bills Present value Government Treasury Bonds Present value
ICB’s Debenture Present value Prize bonds At cost
Quoted shares As per BRPD Circular no.14 dated June 25, 2001 Un-quoted shares At cost
Investment in listed securities
These securities are bought and held primarily for the purpose of selling them in future of held for
dividend income. These are reported at cost unrealized gains are not recognized in the profit and loss account.
Investment in unlisted securities
Investment in unlisted securities is reported at cost under cost method. Adjustment is given for any
shortage of book value over cost for determining the carrying amount of investment in unlisted securities.
1.3.4 Property, plant and equipment
a) Land and building were revalued on 31.12.2008. Fixed assets are stated at historical cost or revalued amount (whenever applicable) less accumulated depreciation as per BAS -16” Property, Plant and
Equipment” the cost of acquisition of an assets comprises its purchase price and any directly attributable cost of bringing the assets to its working condition for its intended use inclusive of inward freight, duties
and non refundable taxes.
b) The bank recognizes in the carrying amount of an item of property, plant and equipment the cost of replacing part of such an item when that cost is incurred if it is probable that the future economic
benefits embodied with the item will flow to the company and the cost of the item can be measured
reliably. Expenditure incurred after the assets have been put into operation such as repairs and maintenance is normally charged of as revenue expenditure in the period in which it is incurred.
c) Depreciation is charged for the year at the following rates on reducing balance method on all fixed
assets other than vehicles and software on which straight line depreciation method is followed and no depreciation on land is charged:
Category of fixed assets Rate
Land Building/Apartment & Structure
Nil 2.50%
Furniture & fixture 10.00% to 20.00% Office equipment & Machineries 20.00%
Software (straight line) 20.00% Vehicles (straight line) 20.00%
d) For additions during the year, depreciation is charged for the remaining days of the period and for
disposal depreciation is charged up to the date of disposal.
e) On disposal of fixed assets the cost and accumulated depreciation are eliminated from the fixed assets schedule and gain or loss on such disposal is reflected in the profit and loss account which is determined
with reference to the net book value of the assets and net sale proceeds.
Other assets
a) Provision for other assets
Other assets have been clarified as per BRPD circular no. 14 dated 25.06.2001 of Bangladesh Bank and necessary provisions made thereon accordingly and for item not covered under the circular adequate
provision have been made considering their realisability.
b) Written off other assets
Other assets having no realistic prospect of recovery have been written off and full provisions have been
kept against the debts. Notional balance against the written off investments have been kept to maintain the detailed memorandum records for written off account.
Non-banking assets
There are no assets acquired in exchange for loan during the year of financial statements.
1.3.5 Leasing
Leases are classified as finance leases whenever ‘the terms of the lease’ transfer substantially all the risk
and rewards of ownership to the lessee as per BAS-17 “Lease”.
The Bank as lessor Amount due from lessees under finance leases are recorded as receivables at the amount of the Banks
Loans and Advances in the leases.
The Bank as lessee
The Bank has no assets under finance or operating Leases.
1.4 Basis for valuation of liabilities and provisions
1.4.1 Provision for taxation
Provision for current income tax has been made @ 42.5% as prescribed in the Finance Act, 2011 on the accounting profit made by the Bank after considering some of the add backs to income and disallowances
of expenditure as per income tax laws in compliance with BAS-12 “Income Taxes”.
1.4.2 Deferred taxation
Deferred tax liabilities are the amount of income taxes payable in future periods in respect of taxable temporary differences. Deferred tax assets are the amount of income taxes recoverable in future periods
in respect of deductible temporary differences. Deferred tax assets and liabilities are recognized for the future tax consequences of timing difference arising between the carrying values of assets, liabilities,
income and expenditure and their respective tax bases. Deferred tax assets & liabilities are measured
using tax rates and tax laws that have been enacted or substantially enacted at the balance sheet date.
The impact on the account of changes in the deferred tax assets and liabilities has also been recognized in the profit and loss account as per BAS -12 “Income Taxes”.
1.4.3 Dividend payments
Interim dividends are recognized when they are paid to shareholders. Final dividend is recognized when it is approved by the shareholders.
Dividend payable to the bank’s shareholders are recognized as a liability and deducted from the
shareholders equity in the period in which the shareholders right to receive the payment is established.
1.4.4 Statutory reserve
Bank Companies Act, 1991 requires the bank to transfer not less than 20% of its current period profit
before tax to reserve until such reserve equals to its paid up capital.
1.4.5 Revaluation reserve
When an asset’s carrying amount is increased as a result of a revaluation, the increased amount credited directly to equity under the heading of revaluation surplus/reserve as per BAS-16: “Property, Plant and
Equipment”. The Bank revalued the assets of Land and Buildings which is absolutely own by the Bank
and the increased amount transferred to revaluation reserve. The tax effects on revaluation gain are measured and recognized in the financial statements as per BAS-12: “Income Taxes”
1.4.6 Benefits to the employees
The retirement benefits accrued for the employees of the bank as on reporting date have been accounted
for in accordance with the provisions of BAS-19 “Employee Benefits”. The bank operates retirement benefits scheme for its permanent employees. Elements of which are as under:
a) Provident fund
Provident fund benefits are given to the permanent employees’ of the bank in accordance with bank’s service rules. Accordingly a trust of deed and provident fund rules were prepared. The Commissioner of
Income Tax, Taxes Zone-04, Dhaka has approved the provident fund as a recognized provident fund
within the meaning of section 2(52), read with the provisions of part - B of the First Schedule of Income Tax Ordinance 1984. The recognition took effect from 16.01.1992. The fund is operated by a Board of
Trustees consisting 06 (six) members. All confirmed employees of the bank are contributing 10% of their basic salary as subscription to the fund. The bank also contributes equal amount of the employees’
contribution. Interest earned from the investments is credited to the members account on yearly basis.
b) Gratuity fund
The bank has operated funded gratuity fund which was approved by National Board of Revenue on. The fund is operated Board of Trustees. Provision in respect of which is made annually covering all its
permanent eligible employees as per BAS-19 “Employee Benefits”.
c) Superannuation fund
The bank operates an employees’ Superannuation Fund Trust by a separate Board of Trustees consisting of 05 (Five) members. The death-cum survival benefits are given to the employees as per the eligibility
narrated in the Trust Rules. The fund got recognition from the National Board of Revenue (NBR) effect
from 01.01.2004 under the section 3 and 4 of part –A of First Schedule of Income Tax Ordinance 1984. The bank contributes to the fund annually as per Superannuation Fund Rules of the bank.
d) Benevolent Fund
NCCBL employees’ benevolent fund was established in the year 2007 for the welfare of the distressed employees and their dependents. The employees of the bank contribute to the fund at a rate applicable
for each grade from their monthly salary.
1.4.6 Provision for liabilities
A provision is recognized in the balance sheet when the bank has a legal or constructive obligation of a
result of a past event and it is probable that an outflow of economic benefit will be required to settle the obligation in accordance with the BAS-37 “Provisions, Contingent Liabilities and Contingent Assets”.
1.5 Revenue recognition
1.5.1 Interest income
In terms of the provision of the BAS-18 “Revenue” the interest income is recognized on accrual basis. Interest on loans and advances ceases to be taken in to income when such advances are classified. It is
than kept in interest suspense in a memorandum account. Interest on classified advances is accounted
for on a cash receipt basis.
1.5.2 Investment income
Interest income on investments is recognized on accrual basis. Capital gain on investments in shares is
also included in investment income. Capital gain is recognized when it is realized.
1.5.3 Fees and commission income
Fees and commission income arises on services provided by the bank are recognized on a cash received basis. Commission charged to customer on letters of credit and letters of guarantee is credited to income
at the time of effecting the transactions.
1.5.4 Dividend income on shares
Dividend income on shares is recognized during the period in which it is declared and ascertained.
1.6 Reconciliation of inter-bank and inter-branch account
Accounts with regard to inter-bank are reconciled regularly and there are no material differences which
may affect the financial statements significantly.
Un-reconciled entries / balances incase of inter-branch transaction as on the reporting date are not material.
1.7 Risk management
The risk of NCCBL is defined as the possibility of losses, financial of otherwise. The risk management of
the bank covers core risk areas of banking viz, credit risk, liquidity risk, operational risk and reputation risk arising from money laundering incidences. The prime objective of the risk management is that the
bank evaluates and takes well calculative business risks and there by safeguarding the banks capitals, its financial resources and profitability from various business risks through its own measures and through
implementing Bangladesh Bank guidelines and following some of the best practices as under:
1.7.1 Credit risk
It arises mainly from lending, trade finance, leasing and treasury business. This can be described as potential loss arises from the failure of a counter party to perform as per contractual agreement with the
bank. The failure may result from unwillingness of the counter party of decline in his or her financial condition there for the banks credit risk management activities have been designed to address all these
issues.
The Bank has segregated duties of the officers / executives involved in credit related activities a separate
corporate division has been formed at Head office which is entrusted with the duties of maintaining effective relationship with the customers, marketing of credit products, exploring now business
opportunities etc. more over, credit approval, administration, monitoring and recovery functions have been segregated. For this purpose, three separate units have been formed within the credit division these
are a) Credit risk Management Unit b) Credit Administration Unit and c) Credit monitoring and recovery Unit. Credit risk management Unit is entrusted with the duties of maintaining assets quality, assessing
risk in lending to a particular customer, sanctioning credit, formulating policy / strategy for lending
operation, etc. Adequate provision has been made on classified loans is shown in Note 14.4 (a).
A thorough assessment is done before sanction of any credit facility at Credit Risk Management unit. The
risk assessment includes borrower risk analysis, financial analysis, industry analysis, historical
performance of the customer, security of the proposed credit facility, etc. The assessment process starts at Corporate Credit Division by the Relationship Manager / Officer and ends at Credit Risk Management
Unit when it is approved / declined by the competent authority. Credit approval authority has been delegated to the individual at executives. Proposals beyond their delegation are approved / declined by
the Executives Committee and / or the Management of the Bank. In determining Single borrower / large
loan limit, the instructions of Bangladesh Bank are strictly followed. Internal audit is conducted at periodical intervals to ensure compliance of Bank’s and Regulatory policies. Loans are classified as per
Bangladesh Bank’s guidelines. Concentration of single borrower/large loan limit is shown in Annexure-D.
1.7.2 Liquidity risk
The objective of liquidity risk management is to ensure that all foreseeable funding commitments and
deposit withdrawals can be met when due. To this end, the Bank is maintaining a diversified and stable funding base comprising of core retail and corporate deposits and institutional balances. Management of
liquidity and funding is carried out by Treasury Department under approved policy guidelines. Treasury
front office is supported by a very structured Mid office and Back office. Asset Liability Committee (ALCO) monitors the Liquidity management on a regular basis. A written contingency plan is in place to manage
extreme situation.
1.7.3 Market risk
The exposure of market risk of the bank is restricted to foreign exchange risk, interest rate risk and equity risk.
Foreign exchange risk
Foreign exchange risk is defined as the potential change in earning due to change in market prices. The foreign exchange risk of the Bank is minimal as all the transactions are carried out on behalf of the
customers against underlying L/C commitments and other remittance requirements. No foreign exchange dealing on Banks account was conducted during the year.
Treasury Department independently conducts the transactions and the back office of treasury is
responsible for verification of the deals and passing of their entries in the books of account. All foreign exchange transactions are revalued at Mark-to-Market rate as determined by Bangladesh Bank at the
month-end. All Nostro accounts are reconciled on a monthly basis and the management for its settlement
reviews outstanding entry beyond 30 days. The position maintained by the bank at the end of day was within the stipulated limit prescribed by the Bangladesh Bank.
Interest rate risk
Interest rate risk may arise either from trading portfolio and non-trading portfolio. The trading portfolio of the Bank consists of Government treasury bills of 28 days maturity. The short-term movement in interest
rate is negligible or nil. Interest rate risk of non-trading business arises from mismatches between the
future yield of an asset and its funding cost. Asset liability Committee (ALCO) monitors the interest rate movement on a regular basis.
Equity risk
Equity risk arises from movement in market value of equities held. The market value of equities is lesser
than cost price against which provision is appearing made in these financial statements.
1.7.4 Reputation risk arising from money laundering incidences
Money laundering risk is defined as the loss of reputation and expenses incurred as penalty for being negligent in prevention of money laundering. For mitigating the risks, the bank has a designated Chief
Compliance officer at Head office and Compliance officers at branches, who independently review the transactions of the accounts to verify suspicious transactions. Manuals for prevention of money
laundering have been established and transaction profile has been introduced. Training is continuously
given to all the category of Officers and Executives for developing awareness and skill for identifying suspicious activities / transactions.
1.7.5 Operational risk
Operational risk may arise from error and fraud due to lack of internal control and compliance.
Management through internal control and compliance division controls operational procedure of the Bank. Internal Control and compliance division undertakes periodical and special audit of the branches and
departments at the Head Office for review of the operation and compliance of statutory requirements. The Audit Committee of the Board subsequently reviews the reports of the internal control and
compliance division.
1.8 Earnings per share
Basic earning per share
Basic earning per share has been calculated in accordance with BAS-33 “Earning per Share” which has
been shown on the face of the profit and loss account. This has been calculated by dividing the basic earning by the weighted average number of ordinary shares outstanding during the period.
Diluted earnings per share
No diluted earning per share is required to be calculated for the period as there was no scope for dilution
during the year under review.
1.9 Off-balance sheet items & provisions
Off balance sheet items have been disclosed under contingent liabilities and other commitments as per Bangladesh Bank guidelines. Provision for Off-balance sheet items is made as per instruction contained in
BRPD Circular # 10, dated September 18, 2007 @ 1% on Off-balance sheet items as on June 30, 2011.
1.10 Memorandum items
Memorandum items are maintained to have control over all items of importance and for such transactions where the Bank has only a business responsibility and no legal commitment. Stock of Traveler’s Cheques
(TC), Saving Certificates and other fall under the memorandum items.
1.11 Offsetting
Financial assets and financial liabilities are offset and the net amount reported in the balance sheet when
there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis, or realize the asset and settle the liability simultaneously.
1.12 Compliance of Bangladesh Accounting Standards (BAS) and Bangladesh Financial Reporting
Standards (BFRS):
Name of the BAS BAS no Status
Presentation of Financial Statements 1 Applied Inventories 2 Not applicable
Cash Flow Statements 7 Applied Accounting Policies, Changes in Accounting
Estimates and Errors
8 Applied
Events after the Balance Sheet Date 10 Applied
Construction Contracts 11 Not applicable Income Taxes 12 Applied
Property, Plant and Equipment 16 Applied
Leases 17 Applied Revenue 18 Applied
Employee Benefits 19 Applied
Accounting for Government Grants and Disclosure of Government Assistance
20 Not applicable
The Effect of Changes in Foreign Exchanges Rates
21 Applied
Borrowing Costs 23 Applied
Related Party Disclosures 24 Applied
Accounting and Reporting by Retirement Benefit Plans
26 Applied
Consolidated and Separate Financial Statements 27 Applied
Investments in Associates 28 Applied
Interest in Joint Ventures 31 Not applicable Earnings Per Share 33 Applied
Interim Financial Reporting 34 Applied Impairment of Assets 36 Applied
Provisions, Contingent Liabilities and Contingent
Assets
37 Applied
Intangible Assets 38 Applied
Investment Property 40 Applied Agriculture 41 Not applicable
Name of the BFRS BFRS no. Status Share Based Payment 2 Not applicable
Business Combinations 3 Not applicable Non-current Assets Held for Sale and
Discontinued Operations
5 Not applicable
Financial Instruments: Disclosure 7 Applicable
Operating Segments 8 Applicable
1.13 Regulatory and legal compliance
The Bank complied with the requirements of following regulatory and legal authorities:
a) The Bank Companies Act, 1991;
b) The Companies Act, 1994; c) Rules and Regulations issued by Bangladesh Bank;
d) The Securities and Exchange Rules 1987, The Securities and Exchange Ordinance 1969, The
Securities and Exchange Commission Act, 1993, The Securities and Commission (Public Issue) Rules 2006;
e) The Income Tax Ordinance, 1984; f) The VAT Act, 1991;
g) Other Laws & Regulations as applicable.
1.14 Information and communication technology
NCCBL follows the guideline stated in BRPD Circular no. 14 dated 23 October 2005 regarding “Guideline
on Information and Communication Technology for Scheduled Banks”.
IT management deals with IT policy documentation, internal IT audit, training and insurance.
IT operation management covers the dynamics of technology operation management including change
management, assets management and operating environment procedures management. The objective is to achieve the highest levels of technology service quality by minimum operational risk.
Physical security involves providing environmental safeguards as well as controlling physical access to
equipment and data.
In order to ensure that information assets are protected against risk, there are controls over :
a) Password b) User ID maintenance
c) Input d) Network security
e) Data encryption
f) Virus protection g) Internet and e-mail
The Business Control Plan (BCP) is formulated to cover operational risk and taking into account the potential for wide area disasters, data center disasters and the recovery plan. The BCP takes into account
the backup and recovery process.
1.15 Asset Liability Management
The Assets Liability Committee (ALCO) of the Bank monitors Market risk and liquidity risks of the bank.
The Market risk is defined as potential charge in earnings due to change in rate of interest, foreign
exchange rates which are not of trading nature. ALCO reviews liquidity requirement of the Bank, the maturity of assets and liabilities, deposit and lending, pricing strategy and the liquidity contingence plan.
The primary objective of the ALCO is to monitor and avert significant volatility in Net Interest Income (NII), investment value and exchange earnings.
1.16 Segment reporting
The bank has only one reportable business segment and operation of the bank is within the geographical
territory of Bangladesh. Hence segment reporting in accordance with BFRS-8 “Operating Segment” is not
applicable.
1.17 Events after the balance sheet date
Events after the balance sheet date that provide additional information about the bank’s position at the balance sheet date are reflected in the financial statements. Events after the balance sheet date are not
adjusting event are disclosed in the notes when material.
1.18 Assets pledge as security
The bank has secured liability as mentioned in notes 12.01 and there was assets pledge as securities against liabilities.
1.19 Credit rating of the bank
As per the BRPD instruction circular no. 6 dated July 5, 2006, the bank has done its credit rating by the
Credit Rating Agency of Bangladesh (CRAB) based on the financial statements dated December 2010, the following rating has been awarded:
Date of rating Long term Short term
Entity Rating 23.06.2011 A1 ST-2
1.20 Internal Control and Compliance
Operational loss may arise from error and fraud due to lack of internal control and compliance.
Management through Internal control and compliance Division controls operational procedure of the
Bank. Internal control and compliance Division undertakes periodical and special audit of the branches and departments at Head Office for review of the operation and compliance of statutory requirement.
The Audit Committee of the Board subsequently reviews the reports of the internal control and compliance division.
1.21 Audit committee
The Audit committee of the Board of Directors of the Bank formed in accordance with Bangladesh Bank’s
BRPD circular Letter No. 12 dated 23 December 2002 with its members as under :
Sl.
No.
Name Status with
the Bank
Status with
the committee
Educational Qualifications
i)
ii) iii)
iv) v)
Mr. Mahbubul Alam Tara
Mr. Abdus Salam Mr. Ainul Kabir
Mr. Khairul Alam Chaklader Professor Shahid Uddin Ahmed
Director
Director Director
Director Director
Chairman
Member Member
Member Member
M.A. (Economics)
B.Sc. Engg. M.Sc.(Math)
B.Com. Ph.D.
During the period, the Audit committee of the Board conducted 03 (three) meetings in which among
others, the following issues where discussed:
- The committee studied Bangladesh Bank’s comprehensive inspection reports of branches as well as of Head Office accounts, reviewed compliance thereof and gave necessary instructions.
- The committee reviewed the audit and inspection reports of different branches as conducted by the
Bank’s internal Audit and Inspection Department from time to time and gave necessary instructions to the management.
- The Committee perused and noted Bangladesh Bank’s policy Circulars/ Circular Letters and other
listing regulations in force and gave necessary instructions.
2 Number of Employees
Number of Employees at June 30, 2011 was 1847; (2010:1865) who were in receipt of remuneration for
that year which in the aggregate was not less than Tk. 36,000 per annum and those employed for a part
of that year who were also in receipt of remuneration of not less than Tk.3,000 per month.
3 General
Figures appearing in these Financial Statements have been rounded off to the nearest Taka.
Previous year’s figures whenever considered necessary have been rearranged in order to conform to
current year’s presentation.
Stock of Travelers’ Cheques, Shanchaya patras are not reflected as Off-balance Sheet items in the Financial Statements.
June 30, 2011 December 31, 2010
Taka Taka
4 Cash in hand ( Including Foreign Currencies)
Local currency 758,535,254 722,585,828
Foreign Currencies 3,971,170 9,006,915
762,506,424 731,592,743
4(a) Consolidated Cash in hand
Cash in hand (Including Foreign Currencies)
NCC Bank Limited (Note-4 ) 762,506,424 731,592,743
NCCB Securities and Financial Services Limited 5,948 -
762,512,372 731,592,743
5 Balance with Bangladesh Bank and its agent bank(s)
Local currency 4,503,491,172 5,125,603,170
Foreign currencies 345,528,072 88,116,919
4,849,019,244 5,213,720,089
Sonali Bank Ltd. as agent of Bangladesh Bank ( Local Currency )-note 5.1 244,072,156 286,294,421
5,093,091,400 5,500,014,510
5.1 Sonali Bank Ltd. as agent of Bangladesh Bank ( Local Currency )
Cox's Bazar Branch 11,472,602 43,200,925
Feni Branch 24,999,826 15,531,864
Laxmipur Branch 15,222,152 18,081,375
Moulvibazar 179,621 3,023,615
Jessore Branch 52,500,085 30,092,311
Chaumuhani Branch 8,503,906 10,785,499
Madaripur Branch 4,813,971 1,782,075
Chakaria Branch 8,078,424 130,547
Comilla Branch 22,866,901 8,648,582
Joydevpur Branch 2,574,236 6,728,401
Mymensingh Branch 40,160,026 22,388,625
Tangail Branch 21,795,419 44,682,738
Naogaon Branch 6,565,294 7,593,288
Kushtia Branch 3,477,799 6,555,207
Narayangonj Branch 13,977,218 58,461,260
Brahmanbaria Branch 2,101,471 4,601,761
Narsingdi Branch 861,681 3,735,431
Maijdee Branch 3,921,524 270,917
244,072,156 286,294,421
5.2 Cash Reserve Requirement (CRR) and Statutory Liquidity Ratio (SLR)
Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) have been calculated and maintained in accordance with the Section 33 of the Bank
Companies Act 1991 and subsequent BCD Circular No.13 dated May 24, 1992; BRPD Circular No. 12, dated September 20, 1999, BRPD Circular No. 22
dated November 6, 2003, BRPD Circular No. 05 dated July 21, 2004 and DOS Circular no-06 March 23, 2005. BRPD Circular No. 11 & 12 dated 25
August 2005, MPD circular no. 116/2010-1712 & 04 dated December 2010.
The cash reserve requirement on the Bank's time and demand liabilities @ of 6% has been calculated and maintained with Bangladesh Bank in current
account and 19% Statutory Liquidity ratio including CRR on same liabilities has also been maintained in the form of treasury bills, treasury bonds and
debenture including FC balance with Bangladesh Bank. Both the reserves maintained by the Bank are in excess of the statutory requirements as shown
below:
June 30, 2011 December 31, 2010
Taka Taka
5.3 Cash Reserve Requirement ( CRR) 6% of average Demand and Time Liabilities:
Required Reserve 4,252,600,000 4,044,500,000
Actual Reserve held 4,503,491,172 5,125,603,170
Surplus/ (deficit) 250,891,172 1,081,103,170
5.4 Statutory Liquidity Ratio ( SLR) 19% of average Demand and Time Liabilities:
Required Reserve (including CRR) 13,101,700,000 12,792,100,000
Actual Reserve held (including CRR) 23,777,321,707 16,493,914,140
Surplus/ (deficit) 10,675,621,707 3,701,814,140
Total required reserve 13,691,100,000 12,792,100,000
Total actual reserve held 23,777,321,707 16,493,914,140
Total Surplus/(deficit) 10,086,221,707 3,701,814,140
6 Balance with other Banks and Financial Institutions :
In Bangladesh (Note -6.01 ) 167,227,212 331,517,804
Outside Bangladesh ( Note-6.2) 612,808,811 235,808,073
780,036,023 567,325,877
6.1 In Bangladesh
Current Accounts with
Sonali Bank Ltd. 36,168,399 21,505,633
ICB Islamic Bank Ltd. 589,173 600,023
Janata Bank Ltd. 14,749,453 13,340,763
IFIC Bank Ltd. 2,000 2,000
Uttara Bank Ltd. 240,555 242,055
Islami Bank Bangladesh Ltd. 11,374,804 589,849
Pubali Bank Ltd. 279,535 281,035
Commercial Bank of Ceylon 1,077,500 1,077,500
United Commercial Bank Ltd. 212,318 213,818
National Bank Ltd. - 540
Southeast Bank Ltd. 3,048 -
Standard Chartered Bank 6,531,777 5,140,451
Dutch Bangla Bank Ltd. 1,280,174 422,310
Agrani Bank Ltd. 8,420,905 398,228
Rupali Bank Ltd. 6,109,979 5,793,333
BRAC Bank Limited 539,964 -
87,579,584 49,607,538
Short-term Deposit Accounts
Janata Bank Ltd. 60,208 2,122,846
Dutch Bangla Bank Limited 1,184,969 1,084,969
1,245,177 3,207,815
Fixed Deposit Accounts with
ICB Islamic Bank Ltd. 20,902,451 21,202,451
National Bank of Pakistan - 100,000,000
Lanka Bangla Finance 20,000,000 70,000,000
BD Industrial Finance Co Ltd 37,500,000 37,500,000
International Leasing & Financial Services limited - 50,000,000
78,402,451 278,702,451
167,227,212 331,517,804
June 30, 2011 December 31, 2010
Taka Taka
6.2 Outside Bangladesh (NOSTRO Accounts)
Current Accounts (non-interest bearing) with:
Standard Chartered Bank, Singapore 939,553 533,754
Standard Chartered Bank, Japan 3,171,555 1,369,534
HSBC BANK N.Y - 8,944,497
Bank of Tokyo Mitsubishi, Japan 996,434 905,912
Myanma Investment & Co, Mayanmar 7,499,980 6,632,299
Bank of Tokyo Mitsubishi, Kolkata 7,405,000 7,035,000
American Express Bank, Colombo 24,541,579 26,800,395
BANCO ITAU 568,178 4,897,467
United Bank Ltd., Karachi 1,318,217 1,965,312
AXIS Bank Kolkata 3,970,945 6,462,083
Nepal Bangladesh Bank, Nepal 8,634,165 4,050,339
HSBC, Kolkata 4,499,645 18,888,751
Bank of Bhutan, Phuentsholing 2,452,358 4,060,432
Standard Chartered Bank, London - 1,469,082
Habib Metropoliton Bank 5,339,822 9,891,641
Uni Credio Italiano Spa 15,660,955 4,645,956
Commerrz Bank AG 1,964,731 1,041,928
UBAF,JAPAN 382,970 157,521
ICIC Bank, HKK 7,855,855 11,604,349
ICIC Bank, Kolkata 4,254,030 -
Wachovia NA 27,328,249 -
Nova Scotia Canada 8,564,322 3,803,014
137,348,543 125,159,266
Current Accounts (interest bearing) with:
Standard Chartered Bank, New York 234,082,216 81,801,661
Standard Chartered Bank, London 54,786,451 -
Citi Bank NA 81,840,880 -
Mashreq Bank ,New York 104,750,721 28,847,146
475,460,268 110,648,807
612,808,811 235,808,073
Annexure 'B' may kindly be seen for details
6.3
Payable on demand 700,388,395 285,415,611
Up to one month 21,245,177 153,207,815
Over one month but not more than three months - 70,000,000
Over three months but not more than six months 37,500,000 37,500,000
Over six months but not more than one year - -
Over one year but not more than five years 20,902,451 21,202,451
Over five years - -
780,036,023 567,325,877
6(a) Consolidated Balance with other Banks and Financial Institutions
In Bangladesh
NCC Bank Limited (Note-6.1 ) 167,227,212 331,517,804
NCCB Securities and Financial Services Limited 3,223,083 -
170,450,295 331,517,804
Out side Bangladesh
NCC Bank Limited (Note-6.2 ) 612,808,811 235,808,073
NCCB Securities and Financial Services Limited - -
612,808,811 235,808,073
783,259,106 567,325,877
Balance with other banks and financial institutions (according to remaining
maturity grouping) Payable :
June 30, 2011 December 31, 2010
Taka Taka
7 Money at Call and short notice :
- -
- -
- -
8 Investments :
17,921,723,883 10,262,306,887
715,279,898 718,501,349
18,637,003,781 10,980,808,236
i) Investment classified as per Bangladesh Bank Circular
Held for trading (HFT) 11,380,941,926 7,177,654,429
Held to maturity (HTM) 6,533,916,457 3,079,216,458
Other Securities 729,616,850 739,374,266
18,644,475,233 10,996,245,153
a) Government Securities:
Treasury bills:
91 days Treasury bills 318,927,649 -
182 days Treasury bills 1,526,703,960 -
364 days Treasury bills 1,580,330,857 139,030,051
3,425,962,466 139,030,051
Treasury bonds:
5 years Treasury bonds 4,158,228,891 2,072,930,847
10 years Treasury bonds 6,163,697,654 5,934,315,654
15 years Treasury bonds 2,567,949,447 1,345,735,837
20 years Treasury bonds 1,599,019,925 764,858,498
14,488,895,917 10,117,840,836
Prize Bonds 6,865,500 5,436,000
17,921,723,883 10,262,306,887
b) Other investments:
Zero Coupon Bonds 198,110,683 119,296,471
Other Bonds - 100,000,000
Beximco Pharmaceuticals (Debenture ) 60,570 60,570
Investment in shares (Note 8.3) 615,942,668 514,498,115
Less: Provision for diminution in the market value of shares (Note-8.1) (98,834,023) (15,353,807)
517,108,645 499,144,308
715,279,898 718,501,349
18,637,003,781 10,980,808,236
8.1 Provision for Investment fluctuation in shares
Opening Balance 15,353,807 14,589,758
Add: Provision made during the year 83,480,216 764,049
Less: Provision amount Transferred to P/Loss A/c - -
Less: Adjusted during the year - -
Closing Balance 98,834,023 15,353,807
Banking Company
Non-banking financial institutions
Government Securities-Note 8(a)
Other Investments-Note 8(b)
June 30, 2011 December 31, 2010
Taka Taka
8.2 Maturity grouping of investments
Demand 290,195,753 238,091,108
Up to one month 787,357,102 -
Over one month but not more than three months 1,173,140,531 19,401,385
Over three months but not more than six months 560,823,217 -
Over six months but not more than one year 1,373,670,223 139,029,911
Over one year but not more than five years 4,690,881,759 2,292,227,318
Over five years 9,760,935,196 8,292,058,514
18,637,003,781 10,980,808,236
8.3 Investment in Share:
Quoted:
Agrani Insurance Ltd 9,794,937 8,738,938
Prime Textile Spinning Mills Ltd. 300,000 300,000
Olympic Industries Ltd. 511,650 511,650
Asia Insurance Ltd. 6,399,750 6,137,650
Al-Arafa Islami Bank Ltd. 29,564,701 26,719,575
Bata Shoe Co. (BD) Ltd. 3,008,892 3,008,892
BSRM Steel Ltd. 6,736,541 4,599,429
Eastern Cables Ltd. 277,852 277,852
DBH 1st Mutual Fund - 4,000,000
National Bank Limited 5,061,712 5,984,195
Eastland Insurance Ltd 11,650 11,650
Green Delta Insurance Co. 7,484,686 2,691,070
Bangladesh Auto Cars Ltd. 223,932 223,932
Eagle Star Textile Mills Ltd. 4,227,951 4,227,951
Bank Asia Ltd 5,150,550 -
Exim Bank Ltd 337,500 337,500
Bay Leasing & Investment 42,620,962 -
Premier Leasing Ltd. 13,681 13,681
Summit Power Ltd. 12,635,358 12,919,344
MBL 1st Mutual Fund 10,000,000 -
IDLC 11,685,708 9,255,159
SEBL 1st Mutual Fund 10,000,000 -
Green Delta Mutual Fund 10,000,000 -
Prime Bank Ltd. 11,223 99,825
Lanka Bangla Finance Ltd. 8,781,367 3,444,450
Uttara Bank Ltd. 934,833 934,833
Arab Bangladesh Bank Ltd 1,562,905 870,280
ICB Islami Bank Ltd. 5,490,645 5,490,645
DESCO Ltd. 9,945,178 9,945,178
Jamuna Bank Ltd. 8,509,524 3,730,599
Meghna Petroleum Ltd. 3,292,656 3,292,656
Power Grid Co. Ltd. 2,004,763 -
Pubali Bank Limited 24,453,435 18,277,987
Balance Carried forward 241,034,542 136,044,921
June 30, 2011 December 31, 2010
Taka Taka
Balance brought forward 241,034,542 136,044,921
Square Pharma - 11,400,286
Standard Bank Ltd. 114,448 1,211,893
Fareast Life Insurance Ltd. 704,400 -
Islami Bank Bangladesh Ltd. 56,132 757,781
Navana CNG Ltd. 17,923,420 17,923,420
Grameenphone Ltd. 7,206,040 6,053,665
Summit Alliance Port Ltd. 7,806,380 7,806,380
Square Textiles Ltd 9,368,665 8,040,555
Titas Gas Transmission 13,350,279 2,788,029
South East Bank Ltd. 37,868,869 35,577,269
Khulna Power Co. Ltd. 2,471,700 2,471,700
Laferge Surma Cement 3,504,400 3,504,400
Ocean Containers Ltd. 2,325,945 2,325,945
RAK Ceramics Ltd. 3,046 2,184,864
Karnaphuly Insurance Ltd. 1,701,470 -
Shahjalal Islami Bank Ltd. 7,655,725 -
Bangladesh General Insurance Co. 758,000 -
Peoples Leasing and Finance 28,250,245 -
382,103,706 238,091,108
Un- quoted:
CDBL 8,833,340 2,000,000
Dhaka Stock Exchange Ltd - 400,385
Venture Investment Partner Bangladesh Ltd. 18,000,000 18,000,000
Swift 991,199 991,199
Dhaka Vegetable Oil Industries Ltd. 7,448,523 7,448,523
Chittagong Stock Exchange Ltd. - 19,001,000
Summit Uttaranchal PCL 17,000,000 17,000,000
Summit Purbanchal PCL 25,500,000 25,500,000
Nccbl Mutual Fund-1 150,000,000 150,000,000
Summit Power Ltd 1,900,000 1,900,000
SEBL 1st Mutual Fund - 10,000,000
MBL 1st Mutual Fund - 10,000,000
Green Delta Mutual Fund - 10,000,000
Dun & Bradstreet Rating Agency 4,165,900 4,165,900
233,838,962 276,407,007
615,942,668 514,498,115
8(c) Consolidated Investments
Government Securities
NCC Bank Limited (Note-8.a ) 17,921,723,883 10,262,306,887
NCCB Securities and Financial Services Limited - -
17,921,723,883 10,262,306,887
Other Investments
NCC Bank Limited (Note-8.b ) 715,279,898 718,501,349
NCCB Securities and Financial Services Limited 19,401,385 -
734,681,283 718,501,349
18,656,405,166 10,980,808,236
June 30, 2011 December 31, 2010
Taka Taka
9 Loans and Advances
Loans,Cash Credits,Overdrafts etc.(Note-9.01) 63,486,428,450 59,632,249,645
Bills Purchased and Discounted (Note-9.2) 3,203,103,128 3,597,891,983
66,689,531,578 63,230,141,628
9.1 Loans, Cash Credits, Overdrafts etc.
Inside Bangladesh:
Overdraft 12,342,338,619 11,690,527,439
Cash credit 10,828,853,618 9,710,795,572
Loan - general 6,678,709,113 6,285,091,051
Transport loan 393,249,033 399,830,254
House building loan 1,566,535,685 1,508,750,926
Loan against trust receipt 12,161,064,093 11,535,188,764
Loan against Imported Merchandise 84,873,102 64,152,677
Loan against Investment 10,480 10,500
Loan against packing credit 169,746,455 164,860,309
Project loan 158,758,405 297,487,398
Demand loan 1,074,075 12,380,294
Lease Finance 1,169,362,502 964,245,222
Payment against document 2,124,279,897 2,104,825,226
Consumer Finance Scheme 1,210,483 1,333,336
Housing Loan under B.Bank Refinance Scheme 38,939,883 41,309,112
Loan Revolving 384,266 1,037
Staff Loan 515,087,873 518,377,438
Small Business Loan 840,531,456 810,803,851
House Renovation Loan 78,962,653 91,676,699
Personal Loan Scheme 14,215,082 16,379,763
Term Loan (Small,Medium & Large) 11,325,083,396 10,726,234,410
Agri Credit 244,619,007 269,576,890
Festival Loan 62,686,800 73,869,925
Special Housing Loan 1,037,238,441 1,046,796,732
Credit Card 229,370,491 215,541,374
Forced Loan 580,056,360 538,085,843
Short Term Loan 809,009,674 534,572,412
Retail Loan 14,938,109 5,520,772
NCCB- Garments wear & Foot wear Cluster 14,003,741 -
Education Loan Scheme 1,235,658 4,024,419
63,486,428,450 59,632,249,645
Outside Bangladesh: - -
63,486,428,450 59,632,249,645
9.2 Bills Purchased and Discounted
Inside Bangladesh:
Inland bills purchased 10,498,724 2,310,763
Local documentary bills purchased 2,997,448,647 3,379,320,119
3,007,947,371 3,381,630,882
Outside Bangladesh:
Foreign bills purchased 10 10
Foreign documentary bills purchased 195,155,747 216,261,091
195,155,757 216,261,101
3,203,103,128 3,597,891,983
66,689,531,578 63,230,141,628
June 30, 2011 December 31, 2010
Taka Taka
9.3 Net Loans and Advances
Gross Loans and Advances 66,689,531,578 63,230,141,628
Less: Non-performing loans and advances 3,225,499,000 1,425,280,000
Interest suspense 302,895,611 265,448,405
3,528,394,611 1,690,728,405
63,161,136,967 61,539,413,223
9.4
Repayable on demand 581,130,435 550,466,137
Up to one month 12,889,850,206 11,746,721,943
Over one month but not more than three months 13,953,936,557 13,704,166,666
Over three months but less than one year 26,058,084,555 21,673,219,120
Over one year but less than five years 7,974,092,997 9,646,426,492
Above five years 5,232,436,828 5,909,141,270
66,689,531,578 63,230,141,628
9.5
In Bangladesh :
Loans 40,315,236,213 38,230,926,634
Cash credit 10,828,853,618 9,710,795,572
Overdraft 12,342,338,619 11,690,527,439
Bills Purchased & Discounted 3,007,947,371 3,381,630,882
66,494,375,821 63,013,880,527
Outside Bangladesh (Bills Purchased & Discounted) 195,155,757 216,261,101
66,689,531,578 63,230,141,628
9.6
69,195,000 52,966,452
II) Advances to customers' group-wise clients
a) Import Financing 5,617,187,482 5,556,397,235
b) Export financing 6,190,348,198 3,779,699,125
c) House Building Loan 2,565,180,324 2,757,288,562
d) Consumers credit scheme 306,332,000 307,448,468
e) Small and Medium Enterprise (SME) 9,480,139,000 8,940,710,658
f) Special program loan 136,164,291 129,856,422
g) Staff Loans 515,087,873 518,377,437
h) Others 1,960,469,667 1,729,558,158
26,770,908,835 23,719,336,065
III) Industrial loans
a) Agriculture 545,275,125 525,903,854
b) Industry 25,098,857,572 25,844,987,354
c) Construction 1,432,658,038 1,117,858,587
d) Transport and Communication 421,114,852 400,329,681
e) Storage 293,002,198 300,657,328
f) Business 11,833,929,829 11,053,962,349
g) Others 224,590,129 214,139,958
39,849,427,743 39,457,839,111
66,689,531,578 63,230,141,628
I) Advances to allied concerns of Directors of the Bank
Residual maturity grouping of loans and advances including bills purchased and
discountedbills purchased and discounted
the following broad categories
including bills purchased and discounted classified into
Loans and advances on the basis of significant concentration
Loans and advances including bills purchased and
discounted classified into the following broad categories
June 30, 2011 December 31, 2010
Taka Taka
9.7
9 6
15,225,300,000 8,714,500,000
- -
Measures taken for recovery - -
Annexure 'D' may kindly be seen for details.
9.8 Loans and advances on the basis of geographical location wise
Urban
Dhaka Division 43,609,076,877 40,954,241,178
Chittagong Division 16,432,400,002 16,179,816,277
Rajshahi Division 682,738,436 756,552,665
Rangpur Division 429,730,409 396,806,030
Sylhet Division 601,397,884 618,250,060
Khulna Division 1,897,879,403 1,676,883,941
Barisal Division 3,498,805 -
63,656,721,816 60,582,550,151
Rural
Dhaka Division 775,752,370 749,305,306
Chittagong Division 1,272,374,058 927,209,872
Rajshahi Division 88,752,556 46,712,852
Rangpur 601,718,477 554,424,632
Sylhet Division 294,212,301 369,938,815
Khulna Division - -
Barisal - -
3,032,809,762 2,647,591,477
66,689,531,578 63,230,141,628
9.9 Classification of Loans and advances
Unclassified Standard (including staff loans) 63,185,559,578 60,634,171,628
Unclassified Special Mention Account 278,473,000 1,170,690,000
Sub-standard 1,028,729,000 143,404,000
Doubtful 474,540,000 60,831,000
Bad/Loss 1,722,230,000 1,221,045,000
66,689,531,578 63,230,141,628
9.10 Particulars of loans and advances
i) 54,307,695,334 51,895,056,119
ii) 7,529,248,115 7,137,073,880
iii) 4,852,588,129 4,198,011,629
iv) - -
66,689,531,578 63,230,141,628
Loans considered doubtful or bad not provided for.
Amount of outstanding Advances
Loans considered good for which the bank holds no other security than the debtor's personal
security.
Loans considered good and secured by the personal security of one or more parties in
addition to the personal security of the debtors.
Number of clients with outstanding amount and classified Loans and advances
exceeding 10% of total capital of the Bank.
Number of the clients
Amount of classified advances
Loans considered good in respect of which the bank is fully secured.
June 30, 2011 December 31, 2010
Taka Taka
* v) 515,087,873 518,377,438
vi)
69,195,000 52,966,452
vii)
515,087,873 518,377,438
viii)
69,195,000 52,966,452
ix) Due from banking companies - -
x) 3,225,499,000 1,425,280,000
a) Increase/(decrease) of provision (specific) during the year 594,298,001 22,578,000
* Amount represents loans to employees of the Bank only.
b) Amount of provision kept against the amount classified 1,050,490,000 703,841,000
as bad/loss at the Balance Sheet preparing date.
c) Amount of interest charged in interest suspense account 303,702,690 265,448,405
xi) Cumulative amount of written off debt
Opening balance as on 1 January 2,085,206,013 1,658,506,255
Add: Amount of debt written off during the Period - 426,699,758
Closing balance as on 30 June 2,085,206,013 2,085,206,013
xii) Amount of written off debt against which law suit has
been filed for its recovery during the period - 91,112,193
9.11 Outstanding Bad & Loss Loans to be Written off
9.12 Bills purchased and discounted:
a) Payable:
In Bangladesh 3,007,947,371 3,381,630,882
Outside Bangladesh 195,155,757 216,261,101
3,203,103,128 3,597,891,983
Bangladesh Bank issued a circular no.02 dated 13 January 2003 instructing all the banks in the country to write off bad & loss loans
which have passed five years after its classification and legal actions have been taken against all those default borrowers with an
immediate effect. In compliance with the circular, the Bank formed a Debt Collection Unit in its Head Office from where monitoring
has been made accordingly. During the period, the Bank not allowed write off against which legal actions have not been lying with
the money suit court. In this connection, branches have been maintaining separate ledger for all individual cases. The debt collection
unit will follow-up the realisation of such debts in future also and time to time a progress report to be given to the management by
the branches.
Debts due by directors or officers of the bank or any of them either severally or jointly with
any other persons.
Debts due by companies or firms in which the directors of the Bank are interested as
directors, partners or managing agent or in case of private companies as members.
Maximum total amount of advances, including temporary advances made at any time during
the year to directors or managers or officers of the bank or any of them either severally or
jointly with any other persons.
Maximum total amount of advances, including temporary advances, granted during the year
to the companies or firms in which the directors of the bank are interested as directors,
partners or managing agents or, in case of private companies as members.
Classified loans for which interest/profit not credited to income
June 30, 2011 December 31, 2010
Taka Taka
b) Bills purchased & discounted on the basis of the residual
maturity grouping
Payable:
Within one month 361,765,000 1,088,654,000
Over one month but less than three months 1,984,366,272 1,870,965,000
Over three months but less than six months 855,995,856 619,961,000
Over six months 976,000 18,311,983
3,203,103,128 3,597,891,983
9(i) Consolidated Loans and Advances
Loans, Cash Credits, Overdrafts etc.(Note-9.1)
NCC Bank Limited 63,486,428,450 59,632,249,645
NCCB Securities and Financial Services Limited. 2,823,976,005 -
66,310,404,455 59,632,249,645
Less : Loan to NCCB Securities and Financial Services Limited. 2,429,407,250 -
63,880,997,205 59,632,249,645
Bills Purchased and Discounted (Note-9.2)
NCC Bank Limited 3,203,103,128 3,597,891,983
Less : Loan to NCCB Securities and Financial Services Limited. - -
3,203,103,128 3,597,891,983
67,084,100,333 63,230,141,628
10 Fixed assets including premises, furniture and fixtures
Cost/valuation
Land 452,423,608 413,139,440
Structure ( on land II) 414,335,133 414,335,133
Furniture and fixtures 276,563,556 236,983,642
Machinery and Equipment 453,704,669 388,912,606
Vehicles 65,316,801 68,915,337
Total Cost / Valuation 1,662,343,767 1,522,286,158
Less: Accumulated depreciation 371,368,248 330,792,968
Net book value at the end of the year 1,290,975,519 1,191,493,190
Annexure 'A' may kindly be seen for details.
10(a) Consolidated Fixed Assets including premises,furniture and fixture
NCC Bank Limited (Note-10) 1,290,975,519 1,191,493,190
Less : Fixed Assets in Subsidiaries Company (15,523,731) -
1,275,451,788 1,191,493,190
NCCB Securities and Financial Services Limited 14,680,184 -
1,290,131,972 1,191,493,190
11 Other Assets
Stationery in hand 25,429,470 16,538,351
Stamps and stamped forms in hand 1,683,243 1,386,944
Security deposits 1,750,789 1,662,909
Advance against rent 92,143,297 88,740,104
Suspense account (Note 11.1 ) 64,311,732 82,735,210
Commission receivable 48,628,955 2,350,000
Dividend receivable - 1,017,660
Interest receivable ( Note 11.2 ) 428,869,132 229,539,391
Prepaid Expense(Soft ware) 25,962,156 18,441,288
Others ( Note 11.3 ) 516,416,229 704,016,029
Balance carried forward 1,205,195,003 1,146,427,886
June 30, 2011 December 31, 2010
Taka Taka
Balance brought forward 1,205,195,003 1,146,427,886
Discount receivable 8,104,396 6,917,890
Prepaid Expenses 261,410 41,500
ATM Adjustment 126,717 162,217
Visa Local 399,938 -
Building Construction 191,197,688 153,320,691
Investment in Subsidiary 250,000,000 -
Receivable from sale proceeds of Share 65,922,968 45,931,185
1,721,208,120 1,352,801,369
11.1 Suspense Account
Encashment Shanchaypatra awaiting realisation 29,425,401 35,055,088
DD cancelled 44,600 23,600
Cash Remittance 11,439,168 28,171,886
DD paid without advice 7,547,254 6,516,705
Clearing adjustment 15,855,309 12,967,931
64,311,732 82,735,210
11.2 Interest receivable :
On loans and advances 12,662,958 -
On Treasury Bill/Bond 415,080,341 223,370,640
On bank balances/Financial Institutions 1,125,833 6,168,751
428,869,132 229,539,391
11.3 Others
Advance against TA/DA 442,167 43,055
Legal expenses 253,259 236,109
Waiver of interest 4,404 4,404
Money Gram 29,113,977 29,622,649
Proposed Branches expenses 648,100 4,626,100
Prefunding to TMSS 15,312,115 19,177,949
Zenj Exchange 797,755 883,966
T.C. Buying 21,000 98,626
UAE Exchange 1,530,618 1,985,208
Sundry debtors 370,884,313 569,231,642
Foreign Remittance Payment Project 4,997 -
Protested bill 2,245,789 2,245,789
Prefunding to Foreign Remittance 2,110,326 2,125,020
Xpress Money 4,627,214 8,159,443
Al-Fardan Exchange Co.L.L.C 17,223,924 11,775,203
Habib Quarter 1,793,748 2,006,103
Placid Express 5,748,621 2,674,163
Arab National Bank (KSA) 1,489,137 3,237,877
Advance against Salary 32,000 -
Wall Street 373,319 411,000
First Solution U.K. - 13,060
Kay Maks International 281,900 8,000
Majan Exchange - 3,000
IME (M) SDN.BHD. 1,605,598 -
Three Star 35,173 -
Federal Exchange 21,000 -
Al Zaman Exchange 19,851 -
Repo Adjustment account - 38,563
Advance for booking money agt.DSE Tower 850,000 850,000
Advance for Purchase of Bank Property 58,862,814 44,559,100
Others 83,110 -
516,416,229 704,016,029
June 30, 2011 December 31, 2010
Taka Taka
11(a) Consolidated other Assets
NCC Bank Limited (Note-11) 1,721,208,120 1,352,801,369
Less : Investment in Subsidiary Company (249,999,900) -
Less : Other transaction in Subsidiary Company (45,578,955) -
1,425,629,265 1,352,801,369
NCCB Securities and Financial Services Limited 23,815,945 -
1,449,445,210 1,352,801,369
12 Borrowing from other Banks, Financial Institutions and agents
in Bangladesh
Bangladesh Bank 1,495,304,191 1,570,189,614
SME Foundation 20,000,000 -
South East Bank Ltd 300,000,000 -
Citi Bank NA 30,000,000 -
Standard Chartered Bank 500,000,000 -
State Bank of India 70,000,000 -
Habib Bank Ltd 100,000,000 -
Pubali Bank Ltd. 250,000,000 -
Commercial Bank of Cylon 140,000,000 -
United Commercial Bank Ltd. 100,000,000 -
The Trust Bank Ltd 1,474,887 915,952
3,006,779,078 1,571,105,566
Outside Bangladesh:
ICICI Bank, Kolkata - 31,171,190
Standard Chartered Bank, London 7,698,430 379,250
Mashreq Bank Kolkata 14,640 139,259,404
Standard Chartered Bank, Kolkata 8,965,872 56,549,653
WACHOVIA NA - 15,104,584
Citi Bank NA - 33,459,049
HSBC Bank , New York 1,355,925 -
18,034,867 275,923,130
3,024,813,945 1,847,028,696
Annexure 'C' may kindly be seen for details.
12.01 Security against borrowings from other banks, financial institutions and agents:
Secured 3,005,304,191 1,570,189,614
Unsecured 19,509,754 276,839,082
3,024,813,945 1,847,028,696
1.00
On demand 1,509,509,754 276,839,082
In not more than three months 58,126,617 40,459,366
In more than three months but not more than one year 142,228,627 155,972,593
In more than one year but not more than five years 1,003,173,138 990,820,544
Above five Years 311,775,809 382,937,111
3,024,813,945 1,847,028,696
13 Deposits and other Accounts
Current deposits and other accounts
Current deposits 4,458,646,708 4,967,282,085
Sundry deposits (note 13.4) 3,306,927,479 2,776,641,149
7,765,574,187 7,743,923,234
Borrowings from other banks, financial institutions and agents (according to
remaining maturity grouping) Payable :
June 30, 2011 December 31, 2010
Taka Taka
Saving deposits 7,571,500,817 7,477,106,648
Fixed deposits 43,495,868,872 39,313,895,416
Term deposits
Short term deposits 6,091,840,130 3,322,195,044
Special savings scheme 5,960,430,215 5,312,740,230
Special deposit scheme 1,368,604,180 1,109,703,942
Premium term deposits 163,722,246 151,042,003
Instant earning term deposits 2,000,399 900,000
Money Double Program 3,030,162,494 2,518,357,880
16,616,759,664 12,414,939,099
13.1 Bills Payable:
Payment Order (issued) 881,385,150 922,749,305
Pay slip 2,988 2,988
Demand draft 138,540,066 88,628,087
1,019,928,204 1,011,380,380
76,469,631,744 67,961,244,777
13.2 (a) Demand deposits
From other banks - -
Other than banks 9,361,128,671 9,428,243,212
9,361,128,671 9,428,243,212
13.2 (b) Other deposits:
From other banks
In Fixed Deposits Accounts:
Sonali Bank Limited 500,000,000 500,000,000
Bangladesh Development Bank Limited 75,000,000 70,000,000
575,000,000 570,000,000
Other than banks 66,533,503,073 57,963,001,565
76,469,631,744 67,961,244,777
13.3(a) Residual maturity grouping of Deposits:
From other Banks
Payable:
On demand - -
- -
In more than one month but less than six months 575,000,000 570,000,000
In more than six months but less than one year - -
In more than one year but within five years - -
In more than five years but within ten years - -
575,000,000 570,000,000
13.3 (b) From other than Banks
Payable:
On demand 9,361,128,671 9,428,243,212
5,827,612,809 8,481,537,217
In more than one month but less than three months 14,962,732,344 14,636,233,461
In more than three months but less than one year 25,687,441,247 19,167,408,026
In more than one year but within five years 12,189,220,960 8,006,304,707
In more than five years but within ten years 7,866,495,713 7,671,518,154
75,894,631,744 67,391,244,777
76,469,631,744 67,961,244,777
Within one month
Within one month
June 30, 2011 December 31, 2010
Taka Taka
13.4 Sundry Deposits
Sundry Creditors 181,705,001 118,844,583
Clearing adjustment 100 -
Margin on letters of guarantee 518,004,789 514,121,302
Margin on letters of credit 971,611,728 750,596,856
Security deposits against locker 15,806,872 9,693,520
Foreign correspondents charge 1,755,701 111,987
Credit balance in CC,SOD,Loan etc. 105,251,079 187,088,752
Collection Account 20,114,374 15,625,037
Sanchaypatras 17,407,363 6,013,625
Money Gram 67,184,786 74,447,224
LDBP, Export bill/ proceeds 1,069,011,893 658,033,249
Security deposit Receipts 35,907,419 123,579,411
U.A.E.Exchange 4,696,001 12,712,680
Placid Express 2,793,415 1,619,548
FC,FCY Retention Quota 73,814,772 52,218,326
Cash Risk Allowance/Fund 60,667,998 44,462,120
Majan Exchange 4,166,243 1,334,763
Three Star Remittance 439,369 978,929
Federal Exchange 2,436,560 7,138,134
Advance Rent on Lease Finance 21,731,221 19,591,378
First Solution money transfer 2,834,377 2,816,003
Al-Fardan exchange Co.L.L.C. 8,664,206 6,046,049
Habib Qatar 799,989 760,461
K.M. Financial Services London 9,664,084 1,242,325
Arab National Bank (KSA) 68,508,049 106,460,770
Wall Street Exchange 3,086,177 11,233,042
Dhaka Janata Express 4,224,158 5,441,301
Visa Credit Card 242,810 406,268
Foreign remittance 2,746,806 17,557,057
Retained Comm.from Remittance 413,438 1,000,000
Provident Fund 3,913,762 3,442,599
Credit Card Deposit A/c. 1,250,783 2,694,309
Alt.Cash Assistance 6,458,475 (34,525)
Zenj Exchange 3,504,771 1,805,710
Itau Unibanco.S.A - 309,578
National Exchange Co. 4,894,538 4,531,787
IME(M) SDN.BHD 4,268,385 6,290,955
Al Zaman Exchange 1,311,516 5,324,322
Transmit International Inc. USA 3,429,974 -
Al Mulla International Exchange 814,438 -
Others 1,389,959 1,101,714
Unclaimed Block Account for 10 years & above 100 -
3,306,927,479 2,776,641,149
13 (C) Consolidated Deposits and other Accounts
Current deposits and other accounts
NCC Bank Limited (Note-13) 7,765,574,187 7,743,923,234
44,727,630 -
7,810,301,817 7,743,923,234
NCCB Securities and Financial Services Limited
June 30, 2011 December 31, 2010
Taka Taka
Bills Payable
NCC Bank Limited (Note-13.1) 1,019,928,204 1,011,380,380
- -
1,019,928,204 1,011,380,380
Savings Bank Deposits
NCC Bank Limited (Note-13) 7,571,500,817 7,477,106,648
- -
7,571,500,817 7,477,106,648
Fixed Deposits
NCC Bank Limited (Note-13) 43,495,868,872 39,313,895,416
- -
43,495,868,872 39,313,895,416
Term Deposits
NCC Bank Limited (Note-13) 16,616,759,664 12,414,939,099
- -
16,616,759,664 12,414,939,099
76,514,359,374 67,961,244,777
14 Other Liabilities
Outstanding interest 1,665,425,496 1,050,474,409
Excise duty on loan 916,123 15,656,123
Excise duty on deposit 8,783,736 43,866,064
Special reserve of garments accounts 19,169,248 12,390,230
Provisional for Expenses 2,390,586 2,558,886
Audit fee payable - 150,000
Income tax deduction at source on interest 24,077,194 26,240,653
Advance tax deducted at source 7,479,426 1,073,164
Staff Income tax 555,633 692,853
Inter Branch Transaction Account 346,668,971 363,458,684
Stamp 33,469 22,224
Deduction of VAT on LC commission and Service Charge 13,520,917 15,718,121
Provision for loans and advances (Note 14.4 ) 2,028,500,001 1,483,115,000
Provision on Off balance sheet items (Note-14.5) 195,301,615 174,925,506
Interest Suspense (Note 14.7 ) 303,702,690 265,448,405
Provision for Other Assets ( Note 14.2) 22,065,048 13,872,632
Provision for Income tax ( Note 14.3) 679,500,497 672,855,396
Provision for deferred tax liabilities ( Note 14.3.1) 12,683,303 67,216,207
Exchange Equalization Reserve ( Note 14.1) - -
Reserve for Unforeseen loss 10,325,284 8,704,738
Provision for Gratuity (Note-14.9) - 59,032,636
Contribution to NCC Bank Foundation (Note-14.8) - 16,322,766
Provision for incentive Bonus 95,000,000
5,341,099,237 4,388,794,697
14(a) Consolidated Other Liabilities
NCC Bank Limited (Note-14) 5,341,099,237 4,388,794,697
17,998,306 -
5,359,097,543 4,388,794,697
NCCB Securities and Financial Services Limited
NCCB Securities and Financial Services Limited
NCCB Securities and Financial Services Limited
NCCB Securities and Financial Services Limited
NCCB Securities and Financial Services Limited
June 30, 2011 December 31, 2010
Taka Taka
14.1 Movement in Exchange Equalization Account
Opening Balance - 465,514
Adjusted during the period - (465,514)
Closing balance - -
14.2 Provision for other Assets:
Opening Balance 13,872,632 18,348,000
Add: Provisions made during the period 8,192,416 -
Less: Provisions no longer required - (4,475,368)
Closing balance 22,065,048 13,872,632
14.3 Provision for Income Tax:
Opening Balance 1,157,075,620 2,406,833,505
Add: provision made for current tax 704,171,709 1,057,110,305
Prior years tax - 25,886,372
704,171,709 1,082,996,677
1,861,247,329 3,489,830,182
Less: Adjusted during the period - 2,332,754,562
Closing Balance 1,861,247,329 1,157,075,620
Advance tax at source on treasury bills/ bonds 112,009 112,009
Advance tax at source on bank interest & dividend 12,462,168 5,345,646
Advance income tax deposited by Bank 1,157,893,047 472,139,446
5% Advance income tax paid on L/C commission 11,279,608 6,623,123
1,181,746,832 484,220,224
Net balance at 31 March 2011 679,500,497 672,855,396
14.3.1 Consolidated Provision for Income Tax:
Opening Balance 1,157,075,620 2,406,833,505
Add : Provision made for NCC Bank Limited 704,171,709 1,082,996,677
Add : Provision made for NCCB Securities and Financial Services Limited. 20,854,643 -
725,026,352 3,489,830,182
Less: Adjusted during the period - 2,332,754,562
1,882,101,972 1,157,075,620
NCC Bank Limited 1,181,746,832 484,220,224
NCCB Securities and Financial Services Limited 8,961,668 -
1,190,708,500 484,220,224
691,393,472 672,855,396
14.3.2 Deferred tax (Assets)/ Liabilities
Deferred tax Assets
Opening Balance - -
Addition during the period (334,904,743) -
Adjustment made during the period - -
Closing balance (334,904,743) -
Deferred tax Liabilities
Opening Balance 30,771,267 237,216,207
36,444,940 36,444,940
67,216,207 273,661,147
280,371,839 -
347,588,046 273,661,147
Adjustment made during the period - (206,444,940)
347,588,046 67,216,207
12,683,303 67,216,207
Deferred tax (54,532,904) -
Less: Advance income tax paid and deducted at source
Add: Provision for revaluation reserve on Lands
Addition during the period
Less: Advance income tax paid and deducted at source
Net Deferred tax (Assets)/ Liabilities
June 30, 2011 December 31, 2010
Taka Taka
14.4 Provision for Loans and Advances
a) Movement in specific provision on classified loans and advances
Opening balance 742,802,000 720,224,000
Fully provided debt written off (4,165,428) (378,883,352)
Add: Recoveries of amounts previously written off 25,529,011 9,769,106
Net charged to Profit and Loss Account 572,934,418 391,692,246
Provision held at the end of the period 1,337,100,001 742,802,000
b) Movement in general provision on unclassified loans and advances
Opening balance 740,313,000 509,672,000
- 230,641,000
Less: Provisions no longer required (48,913,000)
691,400,000 740,313,000
Total (a) + (b) 2,028,500,001 1,483,115,000
14.5 Provision on off-balance sheet items
Opening balance 174,925,506 111,928,000
20,376,109 62,997,506
195,301,615 174,925,506
14.6 Provision for NOSTRO Accounts
Opening balance - -
- -
- -
14.7 Interest suspense account
Opening balance 265,448,405 230,367,473
Add: Amount transferred during the period 38,599,059 213,675,197
Less: Amount recovered during the period - (80,544,450)
(344,774) (98,049,815)
Closing balance 303,702,690 265,448,405
14.8
Opening balance 16,322,766 27,200,000
- 16,322,766
16,322,766 43,522,766
16,322,766 27,200,000
- 16,322,766
14.9
59,032,636 225,000,000
- 59,032,636
(59,032,636) (225,000,000)
- 59,032,636
15 Share Capital
15.1 Authorized Share Capital
1,000,000,000 ordinary shares @ of Tk. 10 each 10,000,000,000 10,000,000,000
15.2 Issued, Subscribed and Fully Paid-up Capital
39,000,000 Ordinary shares of Tk 10 each issued for cash 390,000,000 390,000,000
410,681,855 Ordinary shares of Tk 10 each issued as bonus 4,106,818,550 2,666,417,500
144,483,580 Ordinary shares of Tk 10 each issued as right share in Cash 1,444,835,800 1,444,835,800
5,941,654,350 4,501,253,300
Add: Provision made during the period
594,165,435 Ordinary shares of Tk 10 each
Less : Adjusted / transferred during the period
Contribution to NCC Bank Foundation (NCCBF)
Add: Contribution during the period
Provision for Gratuity
Closing Balance
Less: Adjusted/Transferred to STD account during the period
Add: Provision made during the period
Opening Balance
Add: Provision made for the year/net charge in profit and loss account
Less: Amount written off during the period
Add: Provision made during the period
June 30, 2011 December 31, 2010
Taka Taka
15.3 % of Shareholdings as on 30 June 2011
Particulars % of holdings
Local sponsors 40.92 2,431,272,080 1,873,519,000
Financial Institutions 14.57 865,535,490 697,792,000
Foreign Investors 0.32 19,019,200 15,091,400
Public issues 44.19 2,625,827,580 1,914,850,900
100.00 5,941,654,350 4,501,253,300
15.4 Range wise Shareholdings as on 30 June 2011
No. of Shares
83,805,434
22,527,005
18,157,595
8,974,308
5,250,280
5,643,557
16,950,896
17,458,630
11,776,410
10,964,739
8,992,004
44,403,471
244,856,106
94,405,000
594,165,435
15.5 Capital Adequacy Ratio (CAR)
Total assets including Off-Balance sheet items 114,721,984,267 101,048,042,176
Total Risk Weighted Assets 98,777,900,000 91,929,600,000
Required Capital ( 9% of Risk Weighted Assets) 8,890,011,000 8,273,664,000
Actual Capital Held: 10,843,328,981 10,033,986,280
Total Capital surplus/(deficit) 1,953,317,981 1,760,322,280
i) Core capital (Tier- i) (%) 9,692,580,035 8,880,386,166
Paid-up Capital 5,941,654,350 4,501,253,300
Minority Interest 133 -
Statutory Reserve 2,819,456,596 2,543,463,417
General Reserve 7,162,348 7,162,348
Surplus in Profit & Loss Account 924,306,608 1,828,507,101
ii) Supplementary capital (Tier- ii) (%) 1,150,748,946 1,153,600,114
General provision on Unclassified Loan 691,400,000 740,313,000
General Provision for Off-balance sheet Exposures 195,301,615 174,925,506
Revaluation Reserve on Govt. Securities 140,964,738 115,279,015
Assets Revaluation Reserve 123,082,593 123,082,593
Capital Adequacy Ratio :
Held
9.66%
1.25%
10.91%Total
300,001 to 400,000
287
89057
5,001 to 10,000
10,000,001 to 100,000,000
Capital requirement
Tier-I
Tier-II
1,000,001 to 10,000,000
500,001 to 1,000,000
400,001 to 500,000
30,001 to 40,000
40,001 to 50,000
200,001 to 300,000 39
99
196
121
Less than 5,000 14.11
% of shares
holding Range of holding of Shares No. of share holders
243,127,208
594,165,435
100,001 to 200,000
50,001 to 100,000
20,001 to 30,000
3.79
97
10,001 to 20,000
27
968
2369
0.95
2.85
3.06
0.88
2.94
1.51
1.98
19
1.85
Total 93420
15.89 7
9.00% 10.98%
100.00
Required
1.51
9.81%
1.16%
4.50%
4.50%
59
75 41.21
Held
7.47
No of share
86,553,549
1,901,920
262,582,758
June 30, 2011 December 31, 2010
Taka Taka
15.5.1
Sl. Outstanding
No. balance as Risk weights
at 30-06-2011 % 6/30/2011 12/31/2010
Taka Taka Taka
i Cash 762,506,424 0 0 0
ii Claims on Bangladesh Government and 11,389,801,201 0 0 0
Bangladesh Bank
iii Claims on other Sovereigns & Central Banks 0 0 0 0
iv Claims on Bank for International Settlements 0 0 0 0
International Monetary Fund and European
Central Bank
v. Claims on Multilateral Development Banks(MDBs) 0 0-150 0 0
vi. Claims on Public Sector Entities ( other than 0 50-125 0 0
Government) in Bangladesh
vii. Claims on Banks and NBFIs
915,374,307 20-150 915,400,000 658,352,451
3,119,910,284 20 624,000,000 660,011,989
viii. Claims on Corporate 35,971,600,000 20-125 43,785,000,000 40,362,800,000
ix. Claims under Credit Risk Mitigation 3,819,900,000 20-125 313,500,000 282,600,000
x. Claims categorized as retail portfolio and small 10,318,500,000 75 7,738,900,000 8,651,200,000
& medium enterprise (excluding consumer loan)
xi. Consumer Loan 306,300,000 100 306,300,000 307,400,000
xii. Claims fully secured by residential property 1,415,500,000 50 707,800,000 697,400,000
xiii. Claims fully secured by commercial real estate 3,485,400,000 100 3,485,400,000 3,376,000,000
xiv. Past due claims (net off specific provision) 2,171,200,000 50-150 2,785,000,000 2,831,400,000
xv. Capital Market Exposures 2,823,976,005 125 3,530,000,000 4,422,600,000
xvi Unlisted equity investments and regulatory 451,411,600 125 564,300,000 582,100,000
Capital instruments issued by other banks
( Other than those deducted from capital)
held in the banking book
xvii. Investments in venture capital 150 0 0
xviii. Investments in premises,plant and equipment 1,290,131,972 100 1,290,100,000 1,191,600,000
and all other fixed assets
xix. Claims on all fixed assets under operating lease
xx All other assets 3,135,176,535 0-100 1,481,200,000 1,376,700,000
Total 81,376,688,328 67,526,900,000 65,400,164,440
Credit Risk-off-balance sheet assets
Sl. Notional Amount
No. Particulars Credit (Netting off margin Credit Risk weights As at As at
covertion and add on factor equivalent % 30-Jun-11 31-Dec-10
factor (CCF ) for exchange rate (Taka) (Taka)
fluctuation
i. Direct Credit Substitutes 100% 8,936,945,026 8,936,945,026
ii. Lending of Securities or
posting of securities as 100% 0 0
collateral
iii. Other commitments with 100% 0 0
certain drawdown
iv. Performance related 50% 4,233,306,192 2,116,653,096
Calculation of risk weighted assets (RWA)
Credit Risk - On balance sheet assets
Risk weighted assets
as atParticulars
Original maturity over 3 months
Original maturity less than 3 months
Risk weighted Assets
June 30, 2011 December 31, 2010
Taka Taka
contingencies
v. Commitments with original 50% 0 0 20-125 19,157,500,000 15,187,600,000
maturity of over one year
vi. Trade related contingencies 20% 7,547,200,000 1,509,440,000
vii. Commitments with original 20% 16,163,200,000 3,232,640,000
maturity of one year or less
viii. Other commitments that 0% 234,564,236 -
can be unconditionally
cancelled by any time
ix. Foreign exchange contract
Total 37,115,215,454 15,795,678,122 19,157,540,724 15,187,640,543
Risk weighted assets against Market Risk
Sl. Capital charge
No. Particulars (Taka ) As at As at
30-Jun-11 31-Dec-10
(Taka ) (Taka )
i. Capital charge for Interest rate risk 261,073,890 2,900,821,000 2,878,600,000
ii. Capital charge for Equities 52,294,770 581,053,000 597,700,000
iii. Capital Charge for Foreign Exchange position 84,991,500 944,350,000 197,800,000
iv. Capital charge for Commodities 0 0 0
Total 398,360,160 4,426,224,000 3,674,100,000
Risk weighted assets against Operational Risk
Gross Income
Year 1(2011) 0 0
Year 2(2010) 5,888,126,174 5,888,126,174
Year 3(2009) 4,466,532,530 4,466,532,530
Year 3(2008) 3,447,424,941 3,447,424,941
Total gross income 13,802,083,645 13,802,083,645
Average gross income 4,600,694,548 4,600,694,548
Capital charge @ 15% of average gross income 690,104,182 690,104,182
Risk weighted assets 7,667,557,462 7,667,557,462
Calculation of Gross income
Particulars Year 1(2011) Year 2(2010) Year 3(2009) Year 4(2008)
(Taka) (Taka) (Taka) (Taka)
Interest Income 0 6,970,010,528 6,487,768,688 5,449,728,058
Net interest suspense 0 213,675,197 94,242,982 129,765,099
Less : Interest Expenses 0 4,483,541,724 4,960,743,231 4,099,984,694
Net interest Income 0 2,700,144,001 1,621,268,439 1,479,508,463
Income from investment 0 1,642,016,484 1,071,197,525 638,069,608
Commission,Exchange & Brokerage 0 1,264,281,562 981,257,153 1,026,013,925
Other operating income 0 281,684,127 792,809,413 303,832,945
Total income 0 5,888,126,174 4,466,532,530 3,447,424,941
15.6 Minority Interest
Share Capital 100 -
Retained earnings 33
133 -
Risk weighted assets
15.7 Name of the Directors and their shareholdings as at 30 June 2011
Sl. Status Position as on
31.12.2010
1 Chairman 7,058,060
2 Vice-Chairman 2,511,640
3 Director 5,178,590
4 Director 5,184,060
5 Director 8,899,250
6 Director 3,734,190
7 Director 3,075,540
8 Director 749,080
9 Director 340,740
10 Director 9,457,820
11 Director 1,240,720
12 Director 6,964,810
13 Director 826,960
14 Director 2,359,780
15 Director 288,230
16 Director 2,839,150
17 Director -
18 Director 4,794,390
19 Director 3,918,550
20 Director 1,487,870
21 Director 7,937,580
22 Director 4,620,130
23 Director 10,186,700
24 Director 11,238,650
25 Director 12,104,480
116,996,970
June 30, 2011 December 31, 2010
16 Taka Taka
Opening Balance on 1 January 2,543,463,417 1,893,817,316
Addition during the year (20% of pre-tax profit) 275,993,179 649,646,101
Closing Balance at 31 March 2,819,456,596 2,543,463,417
17 General Reserve
Opening Balance on 1 January 7,162,348 67,162,348
Addition during the period - -
Less : Adjusted during the period - 60,000,000
Closing Balance at 31 March 7,162,348 7,162,348
18 Other Reserve
18.1 Capital Reserve - Assets revaluation reserve 246,165,187 282,610,127
Less: provision for deferred tax - 36,444,940
246,165,187 246,165,187
18.2 Revaluation reserve on Govt. securities (Treasury Bills & Bonds)-HTM
Opening balance 230,558,030 385,581,483
Add: addition during the period 51,371,445 35,930,464
Held to Maturity (HTM ) - 35,930,464
Held for trading (HFT) 51,371,445 -
Less: adjusted during the period (190,953,917)
Held for trading (HFT) - (190,953,917)
Closing balance 281,929,475 230,558,030
528,094,662 476,723,217
Mr.Md. Abdul Awal
Mr. Amjadul Ferdous Chowdhury
Alhaj Md. Nurun Newaz
Name of Directors Position as on
30. 06. 2011
529,860
11,747,010
9,316,638
180,463
Mr. Ainul Kabir
Mrs. Sohela Hossain
Mr.Abdus Salam
Mr. Mahbubul Alam Tara
3,547,678 Mr. Yakub Ali
3,114,909
Mr. Ali Imam
Mrs. Lutfun Nahar Begum 6,308,846
3,015,364
Mr. S.M. Abu Mohsin
6,842,958
Mrs. Masuda Begum
6,835,738
Mr. Nurul Islam
Mr. A.S.M Main Uddin Monem
Mr. Md.Mostafizur Rahman
6,128,594
Mr. Md. Shahjahan
4,929,130
4,059,711
1,637,750
Mr. Khondkar Zakaria Mahmud
988,785
12,484,322
1,091,587
9,193,549
Mr. Tofazzal Hossain
Mr. Md. Moin Uddin
Mr. Fakhrul Anwar
Mr. Din M.Rana
Mr. Md. Humayun Kabir
Mr.Harunur Rashid
Mr. Khairul Alam Chaklader
Mr.Md.Abul Bashar
Statutory Reserve
11,677,605
5,172,486
6,098,571
1,963,988
161,124,917
15,977,913
13,446,444
14,835,018
June 30, 2011 December 31, 2010
Taka Taka
19
Retained earnings brought forward from previous year ( Note-19.1 ) 388,106,051 46,474,433
730,327,091 2,371,678,769
(275,993,179) (649,646,101)
- 60,000,000
842,439,963 1,828,507,101
19(a) Consolidated Surplus in profit and Loss Account
Retained earnings brought forward from previous year ( Note-19.1 ) 388,106,051 46,474,433
812,193,769 2,371,678,769
(275,993,179) (649,646,101)
Minority Interest (33) -
- -
- 60,000,000
924,306,608 1,828,507,101
19.1
1,828,507,101 1,120,377,433
(1,440,401,050) (1,073,903,000)
388,106,051 46,474,433
20 Contingent Liabilities :
20.1 8,552,271,026 5,404,953,559
20.2
Directors 12,852,000 2,573,000
Government 1,892,451,825 2,011,346,537
Banks and other financial institutions 14,126,258 14,353,711
Others 3,216,554,898 3,483,992,598
Total 5,135,984,981 5,512,265,846
Less: Margin - Note 13.4 518,004,789 514,121,302
4,617,980,192 4,998,144,544
20.3 Letter of Credit issued
Documentary Credit and short-term trade-related transactions 7,197,029,982 7,832,081,986
Forward Assets purchased and forward deposits placed - -
Spot and forward foreign exchange rate contract - -
Other exchange contract - -
Total 7,197,029,982 7,832,081,986
Less: Margin - Note 13.4 971,611,728 750,596,856
6,225,418,254 7,081,485,130
20.4 Bills for Collection 110,452,974 3,708,113
Money for which the Bank is contingently
Acceptances and Endorsement
Letter of Guarantee
Transferred from General Reserve
Closing Balance
Opening balance
Retained earnings
Issue of Bonus Share 2010
liable in respect of guarantees issued
Transferred from General Reserve
Undrawn formal standby facilities, credit facilities and other
commitments
Surplus in profit and Loss Account
Transferred to General Reserve
Transfer to Statutory Reserve
Profit for the period
Transfer to Statutory Reserve
Profit for the period
June 30,2011 June 30,2010
Taka Taka
21 Interest Income
Interest on Loans and Advances
Loan ( General) 400,577,135 304,922,683
Loan against House Building 112,112,660 79,802,619
Loan against Imported Merchandise 4,557,825 3,229,041
Loan against Trust Receipts 908,825,220 709,531,864
Loan against Packing Credit 13,375,933 8,955,915
SOD against Financial Obligation 415,962,264 411,581,048
SOD against Real Estate 1,889,013 3,048,123
SOD against Import permit 2,266,024 7,610,096
SOD General 391,320,036 245,244,167
SOD Export 28,835,483 14,670,019
C.C. against pledge 9,022,594 17,892,396
C.C. against hypothecation 680,405,601 432,843,605
C.C. against Export 39,833 111,301
Forced Loan 70,523,854 40,339,298
Inland bill purchased 1,397,498 72,905
FDBP & Discounted 13,176,495 5,003,728
Payment against documents 181,325,579 114,707,433
Local documentary bills purchased 224,108,729 117,429,741
Transport loan 20,315,920 11,220,255
Project loan 14,659,683 19,193,963
Demand loan 202,570 2,816,832
Lease Finance 79,724,910 52,883,276
Small Business Loan 57,140,268 50,157,472
House Renovation Loan 6,690,898 6,963,688
Personal Loans 1,217,449 1,319,928
Consumers Finance Scheme 71,641 103,209
Home improvement Loan 870,912 -
Loan against Investment 1,298,803 -
Agri Credit 16,773,687 6,060,052
Festival Small Business Loan 2,372,761 2,944,788
Term Loan (Small,Med/Large) 584,920,780 496,301,173
Special Housing Loan 71,866,860 64,321,496
Housing Loan under Refinance Scheme 1,762,975 1,860,176
Staff P.F Loan 6,170,508 5,522,659
Staff House Building Loan 8,336,494 7,175,287
Staff Car Loan 655,201 926,561
Credit Card 17,042,731 15,908,668
Car Loan Scheme 7,677,712 3,670,384
Short Term Loan (STL) 48,343,657 18,068,432
Garments & Foot wear cluster 36,982 -
Education Loan Scheme 302,884 59,879
4,408,178,062 3,284,474,160
Interest on balances with other banks and financial institutions
Fixed Deposits 47,304,531 13,362,254
Short term Deposits 10,780 11,988
Nostro Accounts 4,029,498 2,529,609
Money at call & short notice 8,081,944 1,077,500
Financial Institutions 4,723,749 3,920,070
678,857 2,708,683
64,829,359 23,610,104
4,473,007,421 3,308,084,264
Discount on Bills Purchased
June 30,2011 June 30,2010
Taka Taka
21(a) Consolidated Interest Income
NCC Bank Limited (Note-21) 4,473,007,421 3,308,084,264
Less : Interest Income paid to NCC Bank Ltd (112,127,087) -
NCCB Securities and Financial Services Limited 166,706,647 -
4,527,586,981 3,308,084,264
22 Interest paid on deposits and borrowings
Savings deposits 148,465,456 100,580,680
Short term deposits 132,918,671 54,447,968
Fixed deposits 2,166,999,679 1,491,014,642
Bearer certificate of deposits - 1,016,880
Special savings scheme 293,715,372 204,180,482
Special deposit scheme 69,190,779 46,992,144
Discount 32,050 14,982
Borrowings from banks, financial institutions, etc. 83,423,153 56,241,239
REPO agreement with Bangladesh Bank 219,123,334 29,116,329
Wage Earners Welfare DPS 4,376,041 2,234,943
Treasury Bond 153,563,141 -
Coupon Interest 61,226,090 -
Premium Term deposits 6,451,403 21,760,252
Instant Earning Term deposits 220,000 496,133
Money Double Program 150,810,245 109,136,831
3,490,515,414 2,117,233,505
22(a) Consolidated Interest paid on Deposits,Borrowings,etc.
NCC Bank Limited (Note-22) 3,490,515,414 2,117,233,505
Less : Interest Expenses (112,127,087) -
NCCB Securities and Financial Services Limited 112,127,087 -
3,490,515,414 2,117,233,505
23 Interest from investments
Dividend on shares 3,945,834 2,338,516
Interest on Treasury bills 107,638,778 41,902,313
Commission from National Prize Bond 121,000 90,000
Income from sale of Shares 20,900,436 180,251,127
Interest on Treasury Bond (HTM) 234,124,869 137,204,102
Interest on Treasury Bond (HFT) 681,297,043 278,604,236
Discount on Zero Coupon Bond 3,621,421 4,296,738
Others 5,824,715 -
1,057,474,096 644,687,032
24 Commission, exchange and brokerage
Commission:
Commission on bill purchased 6,066,607 2,686,852
Commission on Remittances 10,005,397 8,633,177
Commission on Letter of Guarantee 35,976,198 41,937,151
Commission on Letter of Credit 110,298,626 76,096,512
Commission on Pur./Sale-Share/Securities 634,318 -
Commission on Sanchaypatra 21,241 876,238
Commission on Back to Back LC. 26,289,227 20,572,370
Letter of Credit Advising Commission & handling charge 4,964,598 4,747,780
Commission on Acceptance of BTB L/C 50,556,881 27,217,435
Commission - Miscellaneous 8,127,640 3,897,300
Commission on L/C Confirmation 133,138 277,436
Underwriting Commission 6,006,320 5,628,595
Commission on Instrument Cancellation 6,300 11,610
Money Gram/Others 13,361,637 11,363,510
272,448,128 203,945,966
Exchange:
212,538,284 118,193,472
Brokerage 124,910,427 278,073,000
609,896,839 600,212,438
Exchange gain net off exchange losses
June 30,2011 June 30,2010
Taka Taka
24(a) Consolidated Commission,Exchange & Brokerage
NCC Bank Limited (Note-24) 609,896,839 600,212,438
NCCB Securities and Financial Services Limited 71,006,718 -
680,903,557 600,212,438
25 Other operating income
Rent Locker 774,904 608,888
Rent Godown 348,840 1,253,627
Postage recoveries 4,933,493 4,979,426
Telex, Telegram, Trunk call, Fax.Swift etc. recoveries 15,414,239 16,001,169
Incidental charge recoveries - 700
Legal charge recoveries 511,316 435,537
Service charge 33,187,706 28,042,172
ATM Transaction Fees 2,693,144 1,715,429
Profit on sale of Fixed assets 4,233,349 2,366,556
Capital gain on sale of treasury bonds 50,743,670 16,363,965
Risk Fund 3,026,319 2,284,716
Account Maintenance Fees 30,476,349 26,012,894
Card fees 8,685,855 6,989,283
Miscellaneous earnings 35,756,430 20,425,881
Application and processing fees 4,167,882 3,047,376
194,953,496 130,527,619
25(a) Consolidated Other operating income
NCC Bank Limited (Note-25) 194,953,496 130,527,619
NCCB Securities and Financial Services Limited 2,032,788 -
196,986,284 130,527,619
26 Salary & allowances
Basic Salary 202,601,623 187,788,424
House rent allowance 71,592,659 66,270,878
Allowances ( Note 26.a) ) 67,748,308 60,900,997
Bank's contribution to Provident fund 17,363,428 15,884,506
Bonus 47,230,300 21,393,683
Honorarium 755,500 635,804
407,291,818 352,874,292
26(a) Allowances
Entertainment Allowance 15,711,683 14,701,224
Medical allowance 32,316,701 29,764,230
Washing allowance 434,033 467,775
Evening Banking 232,700 200,084
Casual Wages 7,854,328 5,890,731
Other allowance 11,198,863 9,876,953
67,748,308 60,900,997
26(a) Consolidated Salary & allowances
NCC Bank Limited (Note-26) 407,291,818 352,874,292
NCCB Securities and Financial Services Limited 8,106,794 -
415,398,612 352,874,292
27 Rent,taxes,insurance,electricity etc.
Rent :
Office 43,090,216 38,354,829
Godown/Garage 410,216 197,850
Clearing House 28,017 22,102
43,528,449 38,574,781
June 30,2011 June 30,2010
Taka Taka
Rates and Taxes:
Rates 154,623 141,520
Taxes 463,013 904,559
617,636 1,046,079
Insurance:
Cash 2,636,332 2,621,956
Vehicles 583,776 630,802
Deposits 17,164,927 13,390,507
Godown Insurance 264,066
20,385,035 16,907,331
Electricity :
Electricity - office 8,881,476 7,775,664
Electricity - residence 546,692 450,542
9,428,168 8,226,206
73,959,288 64,754,397
27(a) Consolidated Rent,taxes,insurance,electricity etc.
NCC Bank Limited (Note-27) 73,959,288 64,754,397
NCCB Securities and Financial Services Limited 2,321,509 -
76,280,797 64,754,397
28 Legal Expenses
Legal charge 1,867,082 2,073,258
Stamp charge 35,437 70,736
Consultancy fee 48,500 56,321
Credit Rating Fee - -
1,951,019 2,200,315
29 Postage,stamp and telecommunication
Postage 5,400,012 3,801,739
Telex/Swift/Internet 3,761,579 4,267,671
Telephone -Office 2,558,624 2,648,670
Telephone -Residence 1,396,323 1,204,189
13,116,538 11,922,269
29(a) Consolidated Postage,stamp and telecommunication
NCC Bank Limited (Note-29) 13,116,538 11,922,269
NCCB Securities and Financial Services Limited 213,416 -
13,329,954 11,922,269
30 Stationery,printing,advertisement etc.
Printing and stationery:
Printed stationery 9,841,089 8,273,358
Security stationery 6,391,689 4,467,116
Petty stationery 5,583,401 6,194,613
21,816,179 18,935,087
Publicity and advertisement 23,961,357 18,503,947
45,777,536 37,439,034
30(a) Consolidated Stationery,printing,advertisement etc.
NCC Bank Limited (Note-30) 45,777,536 37,439,034
NCCB Securities and Financial Services Limited 355,960 -
46,133,496 37,439,034
June 30,2011 June 30,2010
Taka Taka
31 Managing Director's Salary & allowances
2,250,000 1,755,000
Bonus 1,000,000 1,000,000
Entertainment allowance 162,000 105,750
Medical allowance 324,000 211,500
House Rent allowance 562,500 442,500
4,298,500 3,514,750
32 Director's Fees
1,035,000 1,341,000
33 Audit Fees - -
34 Repairs,maintenance and depreciation
Repairs & Maintenance:
Repairs & Maintenance of Fixed assets 39,933,878 30,152,881
Renovation & Maintenance of Premises 27,701,914 26,856,160
67,635,792 57,009,041
Depreciation: (Annexure 'B')
Furniture and fixtures 9,340,555 7,464,062
Machinery and Equipment 25,881,107 20,546,577
Vehicles 5,223,030 5,075,140
Property 5,500,000 3,180,928
45,944,692 36,266,707
113,580,484 93,275,748
34(a) Consolidated Repairs,maintenance and depreciation
NCC Bank Limited (Note-34) 113,580,484 93,275,748
NCCB Securities and Financial Services Limited 4,590,471 -
118,170,955 93,275,748
Consolidated Repairs & Maintenance:
NCC Bank Limited (Note-34) 67,635,792 57,009,041
NCCB Securities and Financial Services Limited 3,712,451 -
71,348,243 57,009,041
Consolidated Depreciation: (Annexure 'B')
NCC Bank Limited (Note-34) 45,944,692 36,266,707
NCCB Securities and Financial Services Limited 878,020 -
46,822,712 36,266,707
35 Other expensesEntertainment 8,032,103 7,937,697
Car expenses 14,872,032 14,351,614
Paper and periodicals 586,793 652,083
Trade Subscription 8,287,685 3,454,626
Traveling & Conveyance 23,755,921 24,671,435
Cartage & Freight 212,311 65,600
Liveries and Uniform 618,896 382,826
Water sewerage and gas 1,832,346 1,819,766
Medical charges 36,892 107,430
Laundry and cleaning 593,882 288,131
Training expenses 694,586 567,602
Business promotion 8,170,597 6,872,250
Donation 41,938 631,720
Utility Charges 6,794,963 6,184,226
Traveling and Haltage ( Directors ) 1,292,860 663,800
Refreshment and dinner ( Directors ) 469,356 590,743
Revaluation Reserve on BGTB/T.Bill (HFT) 67,236,987 15,366,115
Welfare and Recreation 1,725,528 2,593,831
Other Bank Charge 2,991,316 1,310,550
CDBL Charge 12,463,419 22,488,558
Miscellaneous expenses 156,501 879,502
Credit Card Service Charge 3,441,138 2,880,721
Charges of BO A/c 86,618 177,171
Sale Commission 1,375,532 7,798,568
Superannuation Fund 2,000,000 4,500,000
167,770,200 127,236,565
For attending the meeting of the Board / Executive Committee/ Audit Committee etc. @ Tk
5,000 per attendance per person
Basic Salary
June 30,2011 June 30,2010
Taka Taka
35(a) Consolidated Other expenses
NCC Bank Limited (Note-35) 167,770,200 127,236,565
NCCB Securities and Financial Services Limited 9,309,595 -
177,079,795 127,236,565
36 Cash received from other operating activities
Other operating income 190,720,147 128,161,063
Exchange earning 212,538,284 114,193,472
403,258,431 242,354,535
36(a) Consolidated Cash received from other operating activities
Other operating income 192,752,935 128,161,063
Exchange earning 212,538,284 114,193,472
405,291,219 242,354,535
37 Cash paid for other operating activities
Expenses for the year 261,325,419 196,154,450
Add: Opening accrued expenses 2,708,886 3,925,290
Less: Closing accrued expenses 2,390,586 1,775,519
261,643,719 198,304,221
37(a) Consolidated Cash paid for other operating activities
Expenses for the year 277,238,350 196,154,450
Add: Opening accrued expenses 2,708,886 3,925,290
Less: Closing accrued expenses 2,390,586 1,775,519
277,556,650 198,304,221
38 Increase/(decrease) of other assets
Closing other assets:
Stationery in hand 25,429,470 17,442,666
Stamps and stamped forms in hand 1,683,243 1,489,424
Advance deposit 1,750,789 1,521,259
Advance against rent 92,143,297 77,063,434
Suspense account 64,311,732 78,761,121
Prepaid Expenses (Software) 25,962,156 22,867,268
Others 1,053,331,797 584,854,646
1,264,612,484 783,999,818
Opening other assets:
Stationery in hand 16,538,351 18,211,407
Stamps and stamped forms in hand 1,386,944 980,964
Advance deposit 1,662,909 1,497,459
Advance against rent 88,740,104 58,482,625
Suspense account 82,735,210 62,556,696
Prepaid Expenses (Software) 18,441,288 22,057,268
Others 931,591,963 388,027,076
Income Tax paid during the year 697,526,608 415,339,328
Increase/(decrease) for the year 1,838,623,377 967,152,823
(574,010,893) (183,153,005)
38(a) Increase/(decrease) of Consolidated other assets
Closing other assets:
Stationery in hand 25,429,470 17,442,666
Stamps and stamped forms in hand 1,683,243 1,489,424
Advance deposit 1,750,789 1,521,259
Advance against rent 92,143,297 77,063,434
Suspense account 64,311,732 78,761,121
Prepaid Expenses (Software) 25,962,156 22,867,268
Others 781,568,887 584,854,646
992,849,574 783,999,818
June 30,2011 June 30,2010
Taka Taka
Opening other assets:
Stationery in hand 16,538,351 18,211,407
Stamps and stamped forms in hand 1,386,944 980,964
Advance deposit 1,662,909 1,497,459
Advance against rent 88,740,104 58,482,625
Suspense account 82,735,210 62,556,696
Prepaid Expenses (Software) 18,441,288 22,057,268
Others 931,591,963 388,027,076
Income Tax paid during the year 706,488,276 415,339,328
Increase/(decrease) for the year 1,847,585,045 967,152,823
(854,735,471) (183,153,005)
39 Increase/(decrease) of other liabilities
Closing other liabilities
Interest Suspense 303,702,690 254,976,369
Inter branch transaction account 346,668,971 438,457,846
650,371,661 693,434,215
Opening other liabilities
Interest Suspense 265,448,405 230,367,473
Inter branch transaction account 363,458,684 459,782,492
628,907,089 690,149,965
Increase/(decrease) for the year 21,464,572 3,284,250
40 Cash and Cash equivalents
Cash in hand 762,506,424 553,742,945
Balance with Bangladesh Bank and Sonali Bank 5,093,091,400 5,320,538,275
Balance with other bank and financial institution 759,133,572 1,219,618,663
Prize bonds 6,865,500 7,297,100
6,621,596,896 7,101,196,983
40(a) Consolidated Cash and Cash equivalents
Cash in hand 762,512,372 553,742,945
Balance with Bangladesh Bank and Sonali Bank 5,093,091,400 5,320,538,275
Balance with other bank and financial institution 762,356,655 1,219,618,663
Prize bonds 6,865,500 7,297,100
6,624,825,927 7,101,196,983
41 Earnings Per Share (EPS)
Net Profit after tax for the period 730,327,091 1,065,969,927
Number of Ordinary share outstanding 594,165,435 450,125,330
Earning per Share (EPS) 1.23 2.43
Resated Earning per Share (REPS) - 1.79
41 (a) Consolidated Earnings Per Share
Net Profit after tax for the period 812,193,769 1,065,969,927
Number of Ordinary share outstanding 594,165,435 450,125,330
Earning per Share (EPS) 1.37 2.43
Resated Earning per Share (REPS) - 1.79
Sd/- Sd/-
A.K. Md. Siddique
Deputy Managing Director &
Chief Executive Officer Chief Executive Officer
Mohammed Nurul Amin
Managing Director &
Balance on 1
January -2011
Additions
during the
period
(Disposals) /
adjustments
during the
period
Balance at 30
June- 2011
Balance on 1
January-
2011
Charge for
the period
( On
Disposals)/
adjustments
during the
period
Balance at 30
June -2011
Written down
value at 30 June-
2011
Taka Taka Taka Taka Taka Taka Taka Taka Taka
Furniture & fixture 236,983,642 39,605,087 - 276,588,729 101,626,693 9,559,609 - 111,186,302 165,402,427
Machinery & equipment 388,912,606 64,842,610 (41,247) 453,713,969 180,376,907 26,540,073 206,916,980 246,796,989
Land - I - Head Office Premise
(Under Construction)95,284,000 - - 95,284,000 - - - - 95,284,000
Land - II - Head Office Premise (with Structure) 24,709,834 - - 24,709,834 114,376 27,164 - 141,540 24,568,294
Land - III Premise of Dhanmondi Branch 26,699,950 - - 26,699,950 2,309,293 296,482 - 2,605,775 24,094,175
Land - IV Premise of Islampur Branch 47,812,834 - - 47,812,834 1,749,528 569,542 - 2,319,070 45,493,764
Land -V - Premise of Savar Branch 26,021,474 - - 26,021,474 1,185,074 281,454 - 1,466,528 24,554,946
Land - V1 - Premise of Bijoynagar Branch 53,085,456 - - 53,085,456 2,614,273 620,890 - 3,235,163 49,850,293
Land - V11 - Premise of Pragoti Sarani
Branch62,115,010 - - 62,115,010 872,163 765,536 - 1,637,699 60,477,311
Land - V111 - Premise of Uttara Branch 62,847,200 - - 62,847,200 284,104 782,038 - 1,066,142 61,781,058
Land - 1X -Premise of Agrabad Branch 58,902,420 - - 58,902,420 86,065 485,552 - 571,617 58,330,803
Land - X -Premise of Elephant Road Branch 87,386,268 39,284,168 - 126,670,436 11,699 867,370 - 879,069 125,791,367
Vehicles 68,915,337 1,878,862 (5,477,398) 65,316,801 38,571,696 5,223,030 (5,369,412) 38,425,314 26,891,487
Sub-total 1,239,676,031 145,610,727 (5,518,645) 1,379,768,113 329,801,871 46,018,740 (5,369,412) 370,451,199 1,009,316,914
Land - I - Premise of Head Office
(Under Construction)79,816,000
- - 79,816,000 - - - - 79,816,000
Land - II - Head Office Premise (with
Structure)163,150,265
- - 163,150,265 - - - - 163,150,265
Land - III Premise of Dhanmondi Branch 39,643,862 - - 39,643,862 991,097 803,972 - 1,795,069 37,848,793
Sub-total 282,610,127 - - 282,610,127 991,097 803,972 - 1,795,069 280,815,058
December -2010 Grand total 1,522,286,158 145,610,727 (5,518,645) 1,662,378,240 330,792,968 46,822,712 (5,369,412) 372,246,268 1,290,131,972
December-2010 . 1,110,775,268 422,505,432 (10,994,542) 1,522,286,158 261,671,687 79,661,309 (10,540,028) 330,792,968 1,191,493,190
Annexur-A
National Credit and Commerce Bank Limited
Cost Depreciation
Re-valuation Depreciation
Particulars
CONSOLIDATED FIXED ASSETS SCHEDULE AS AT JUNE 30, 2011
Balance on 1
January -2011
Additions
during the
period
(Disposals) /
adjustments
during the
period
Balance at 30
June- 2011
Balance on 1
January-
2011
Charge for
the period
( On
Disposals)/
adjustments
during the
period
Balance at 30
June -2011
Written down
value at 30 June-
2011
Taka Taka Taka Taka Taka Taka Taka Taka Taka
Furniture & fixture 236,983,642 39,579,914 - 276,563,556 101,626,693 9,340,555 - 110,967,248 165,596,308 Machinery & equipment 388,912,606 64,833,310 (41,247) 453,704,669 180,376,907 25,881,107 206,258,014 247,446,655 Land - I - Head Office Premise (Under
Construction)95,284,000 - - 95,284,000 - - - - 95,284,000
Land - II - Head Office Premise (with
Structure)24,709,834 - - 24,709,834 114,376 27,164 - 141,540 24,568,294
Land - III Premise of Dhanmondi Branch 26,699,950 - - 26,699,950 2,309,293 296,482 - 2,605,775 24,094,175
Land - IV Premise of Islampur Branch 47,812,834 - - 47,812,834 1,749,528 569,542 - 2,319,070 45,493,764
Land -V - Premise of Savar Branch 26,021,474 - - 26,021,474 1,185,074 281,454 - 1,466,528 24,554,946 Land - V1 - Premise of Bijoynagar
Branch53,085,456 - - 53,085,456 2,614,273 620,890 - 3,235,163 49,850,293
Land - V11 - Premise of Pragoti Sarani
Branch62,115,010 - - 62,115,010 872,163 765,536 - 1,637,699 60,477,311
Land - V111 - Premise of Uttara Branch 62,847,200 - - 62,847,200 284,104 782,038 - 1,066,142 61,781,058
Land - 1X -Premise of Agrabad Branch 58,902,420 - - 58,902,420 86,065 485,552 - 571,617 58,330,803
Land - X -Premise of Elephant Road
Branch87,386,268 39,284,168 - 126,670,436 11,699 867,370 - 879,069 125,791,367
Vehicles 68,915,337 1,878,862 (5,477,398) 65,316,801 38,571,696 5,223,030 (5,369,412) 38,425,314 26,891,487
Sub-total 1,239,676,031 145,576,254 (5,518,645) 1,379,733,640 329,801,871 45,140,720 (5,369,412) 369,573,179 1,010,160,461
Land - I - Premise of Head Office (Under
Construction)79,816,000 - - 79,816,000 - - - - 79,816,000
Land - II - Head Office Premise (with
Structure)163,150,265 - - 163,150,265 - - - - 163,150,265
Land - III Premise of Dhanmondi Branch 39,643,862 - - 39,643,862 991,097 803,972 - 1,795,069 37,848,793
Sub-total 282,610,127 - - 282,610,127 991,097 803,972 - 1,795,069 280,815,058
March -2011 Grand total 1,522,286,158 145,576,254 (5,518,645) 1,662,343,767 330,792,968 45,944,692 (5,369,412) 371,368,248 1,290,975,519
December-2010 . 1,110,775,268 422,505,432 (10,994,542) 1,522,286,158 261,671,687 79,661,309 (10,540,028) 330,792,968 1,191,493,190
Re-valuation Depreciation
Particulars
FIXED ASSETS SCHEDULE AS AT JUNE 30, 2011
Annexur-B
National Credit and Commerce Bank Limited
Cost Depreciation
Annexure-C
In demand deposit accounts (non interest bearing) with:
Currency
Name
Amount in
Foreign
Currency
Convertion
rate per
unit F.C.
Amount in
BDT.
Amount in
Foreign
Currency
Convertion
rate per
unit F.C.
Amount in
BDT.
Standard Chartered Bank, Singapore SGD 15,601.29 60.2228 939,553 9,808.62 54.4168 533,754
Standard Chartered Bank, Japan J.YEN 3,445,096.00 0.9206 3,171,555 1,585,843.00 0.8636 1,369,534
HSBC Bank, New York USD - - - 127,142.81 70.3500 8,944,497
Bank of Tokyo Mitsubishi, Japan J.YEN 1,082,375.00 0.9206 996,434 1,048,995.00 0.8636 905,912
Myanma Investment & Co, Mayanmar ACU 101,282.64 74.0500 7,499,980 94,275.75 70.3500 6,632,299
Banko Itau USD 7,672.89 74.0500 568,178 69,615.74 70.3500 4,897,467
Bank of Tokyo Mitsubishi, Kolkata ACU 100,000.00 74.0500 7,405,000 100,000.00 70.3500 7,035,000
American Express Bank, Colombo ACU 331,419.03 74.0500 24,541,579 380,957.99 70.3500 26,800,395
Commerze Bank AG EUR 18,461.30 106.4243 1,964,731 11,267.36 92.4731 1,041,928
United Bank Ltd., Karachi ACU 17,801.71 74.0500 1,318,217 27,936.21 70.3500 1,965,312
UBAF,Japan J.YEN 416,000.00 0.9206 382,970 182,400.00 0.8636 157,521
Nepal Bangladesh Bank, Nepal ACU 116,599.12 74.0500 8,634,165 57,574.12 70.3500 4,050,339
HSBC, Kolkata ACU 60,764.96 74.0500 4,499,645 268,496.81 70.3500 18888751
AXIS Bank Kolkata ACU 53,625.19 74.0500 3,970,945 91,856.19 70.3500 6462083
Bank of Bhutan, Phuentsholing ACU 33,117.59 74.0500 2,452,358 57,717.59 70.3500 4,060,432
WACHOVIA NA USD 369,051.30 74.0500 27,328,249 - - -
ACU 57,448.08 74.0500 4,254,030 - - -
Uni Credio Italiano Spa EURO 147,155.82 106.4243 15,660,955 50,241.16 92.4731 4,645,956
USD 106,088.52 74.0500 7,855,855 164,951.65 70.3500 11604349
CAD 111,978.12 76.4821 8,564,322 54,036.82 70.3782 3803014
Habib Metropoliton Bank ACU 72,111.03 74.0500 5,339,822 140,606.13 70.3500 9,891,641
Standard Chartered Bank, London EUR - - - 15,886.59 92.4731 1,469,082
137,348,543 125,159,266
In demand deposit account ( interest bearing) with :
Currency
Name
Amount in
Foreign
Currency
Convertion
rate per
unit F.C. Amount in
BDT.
Amount in
Foreign
Currency
Convertion
rate per
unit F.C. Amount in
BDT.
Standard Chatered Bank, New York USD 3,161,137.29 74.0500 234,082,216 1,162,781.25 70.3500 81,801,661
Mashreq Bank, New York USD 1,414,594.47 74.0500 104,750,721 410,051.83 70.3500 28,847,146
CITI Bank NA USD 1,105,211.08 74.0500 81,840,880
Standard Chartered Bank, London GBP 463,280.98 118.2575 54,786,451 - - -
475,460,268 110,648,807
612,808,811 235,808,073
Nova Scotia Canada
ICICI Bank HKK
Outside Bangladesh - Note 6(2)
For the half-year ended June 30, 2011
ICICI Bank Kolkata
BALANCE WITH OTHER BANKS AND FINANCIAL INSTITUTIONS
Name of the Bank
June 30, 2011 December 31, 2010
Borrowings from other banks, Financial Institutions and agents
( Outside Bangladesh ) - Note -12
Currency
Name
Amount in
Foreign
Currency
Convertion
rate per
unit F.C.
Amount in
BDT.
Amount in
Foreign
Currency
Convertion
rate per
unit F.C.
Amount in
BDT.
CITI Bank NA USD - - - 468,942.53 71.3500 33,459,050
ICICI Bank, Kolkata ADLR - - - 436,877.22 71.3500 31,171,190
Standard Chartered Bank, London GBP - - - 3,396.57 111.6567 379,250
Standard Chartered Bank, Kolkata ACU 119,465.31 75.0500 8,965,872 792,566.97 71.3500 56,549,653
Wachovia NA USD - 72.3000 - 211,697.04 71.3500 15,104,584
Mashreq Bank Kolkata ACU 195.07 75.0500 14,640 1,951,778.61 71.3500 139,259,404
Standard Chartered Bank, London EUR 69,428.72 110.8825 7,698,430 - - -
HSBC Bank,N.Y USD 18,066.95 75.0500 1,355,925 - - -
18,034,867 275,923,130
Annexure - D
Name of the Bank
40724 40543
NATIONAL CREDIT AND COMMERCE BANK LTDFinancial Statements
For the half-year ended June 30, 2011
Statement of Large Loan Exposure made during the period June 30, 2011
more than 10% of Total Capital of the Bank (Note-9.7)
December 31, 2010
TakaTotal Total
Funded Non-Funded Amount Amount
1 NCCBL Securities & Financial Servises Limited 242.29 102.00 344.29 -
2 Aftab Group (all allied concern) 176.02 25.67 201.69 133.83
3 Doreen Power Generation & Systems Ltd. 186.91 9.50 196.41 205.16
4 Saad Musa Home Tex 101.62 63.09 164.71 101.43
5 Abul Khair Steel Industries Ltd. 45.93 110.83 156.76 152.60
6 Best Holdings Ltd. 120.66 1.41 122.07 112.14
7 DAF P.P. Ind. & allied concern 76.62 39.18 115.80 166.29
8 BSRM Steel 25.98 88.84 114.82 -
9 BBC Steel 13.11 92.87 105.98 -
Grand -Total 989.14 533.39 1,522.53 871.45
Annexure-E
Sl.
No
Name of Clients June 30, 2011
Taka
Outstanding
National Credit and Commerce Bank LimitedNotes to the Financial Statements
(Amount in Crore)
Investment in Shares as on 30.06.2011
SL
No.Name of Company
Type of
Shares
Face
ValueNo. of Shares
Cost / Present
value of
holdings
Quoted rate
per share as
on
30.06.2011
Total Market
Value as at
30.06.2011
1 2 3 4 5 6 8 9
Quoted:1 Bata Shoe Co. (BD) Ltd. A 10 5,000 3,008,892 632.20 3,161,000
2 Bangladesh Auto Cars Ltd. B 100 1,805 223,932 495.25 893,926
3 Eastern Cables Ltd. A 100 2,504 277,852 649.50 1,626,348
4 Eagle Star Textile Mills Ltd. Z 10 254,700 4,227,951 9.90 2,521,530
5 National Bank Limited A 10 117,215 5,061,712 65.20 7,642,385
6 Olympic Industries Ltd. A 100 662 511,650 1,902.00 1,259,124
7 Prime Textile Mills Ltd. A 100 1,000 300,000 534.50 534,500
8 A B Bank Ltd. A 100 1,725 1,562,905 851.00 1,467,975
9 Agrani Insurance Ltd. A 100 11,000 9,794,937 525.50 5,780,500
10 Asia Insurance Ltd. A 10 34,500 6,399,750 72.60 2,504,700
11 Al-Arafa Islami Bank Ltd. A 10 542,425 29,564,701 34.20 18,550,935
12 BSRM Steel Ltd. A 100 3,780 6,736,541 1,413.50 5,343,030
13 MBL 1st Mutual Fund N 10 1,000,000 10,000,000 8.90 8,900,000
14 DESCO Ltd. A 100 5,584 9,945,178 1,706.50 9,529,096
15 Eastland Insurance Ltd. A 100 13 11,650 924.00 12,012
16 Bank Asia Ltd. A 10 9,100 5,150,550 478.25 4,352,075
17 Grameenphone Ltd. N 10 26,000 7,206,040 163.90 4,261,400
18 Green Delta Insurance Co. N 10 27,100 7,484,686 184.70 5,005,370
19 IDLC A 100 4,661 11,685,708 2,049.00 9,550,389
20 Islami Bank (BD) Ltd. A 100 200 56,132 512.50 102,500
21 Jamuna Bank Ltd. A 10 183,211 8,509,524 35.00 6,412,387
22 Lanka Bangla Finance Ltd. A 10 31,700 8,781,367 209.90 6,653,830
23 Meghna Petrolium Ltd A 10 10,750 3,292,656 188.60 2,027,450
24 Navana CNG Ltd. A 10 75,000 17,923,420 168.10 12,607,500
25 Exim Bank Ltd. A 100 45,562 337,500 32.90 1,498,990
26 Prime Bank Ltd. A 10 3,380 11,223 47.50 160,550
27 Pubali Bank Ltd. A 10 393,250 24,453,435 55.30 21,746,725
28 Summit Alliance Port Ltd. A 10 37,500 7,806,380 80.90 3,033,750
29 South East Bank Ltd. A 100 75,600 37,868,869 320.50 24,229,800
30 Square Textiles Ltd A 10 48,000 9,368,665 139.30 6,686,400
31 Karnaphuly Insurance Ltd. 27,000 1,701,470 62.80 1,695,600
32 Standard Bank Ltd. A 100 365 114,448 327.50 119,538
33 Summit Power Ltd. A 10 130,000 12,635,358 81.50 10,595,000
34 Titas Gas Transmission A 100 14,500 13,350,279 802.25 11,632,625
35 Uttara Bank Ltd. A 100 12,000 934,833 79.40 952,800
36 ICB Islamic Bank Z 10 400,100 5,490,645 11.20 4,481,120
37 Khulna Power Co. Ltd. A 10 18,000 2,471,700 69.50 1,251,000
38 Laferge Surma Cement A 100 5,000 3,504,400 489.00 2,445,000
39 Ocean Containers Ltd. N 10 22,056 2,325,945 79.70 1,757,883
40 Shahjalal Islami Bank Ltd. A 10 200,000 7,655,725 38.30 7,660,000
41 Bay Leasing & Investment A 100 23,917 42,620,962 1,122.00 26,834,874
42 Green Delta Mutual Fund N 10 1,000,000 10,000,000 7.80 7,800,000
43 Fareast Life Insurance Ltd. A 2,000 704,400 334.00 668,000
44 Power Grid Co. Ltd. A 100 2,500 2,004,763 807.75 2,019,375
45 Bangladesh General Insurance Co. A 100 15,000 758,000 51.30 769,500
46 SEBL 1st Mutual Fund A 10 1,000,000 10,000,000 8.80 8,800,000
47 Peoples Leasing & Finance A 100 195,450 28,250,245 118.60 23,180,370
48 Premier Leasing Ltd. A 10 20 13,681 733.75 14,969
49 RAK Ceramics Ltd. N 10 70 3,046 105.00 7,329
382,103,706
Un-Quoted
1 CDBL 400,000 8,833,340 - 2,000,000
2 Swift 1 991,199 - 991,199
3 Venture Invst. Partner BD Ltd. 180,000 18,000,000 - 18,000,000
4 Dhaka Vegetable Oil Ind. Ltd. 31,920 7,448,523 - 7,448,523
5 Dun & Bradstreet Rating Agency 41,659 4,165,900 - 4,165,900
6 Summit Uttaranchal PCL 170,000 17,000,000 - 17,000,000
7 Summit Purbanchal PCL 255,000 25,500,000 - 25,500,000
8 NCCBL Mutual Fund -1 1,500,000 150,000,000 - 150,000,000
Annexure-F
National Credit and Commerce Bank Limited
Total Quoted Share : 290,741,160
9 Summit Power Ltd. 19,000 1,900,000 - 1,900,000
233,838,962 227,005,623
615,942,668 517,746,783
Total market value of quoted shares is lesser than cost price by Tk.8,26,33,429/- against which provisionof Tk.8,26,33,429/- is
appearing in these financial statements (Note-8.1).
Total Unquoted Share :
Grand Total :
SL.
No.Name of Directors
Status with
the
NCCBL
Name of the firms/companies in which
interested as proprietor, partner, director,
managing agent, guarantor, employee etc.
% of
interest
1 Alhaj Md. Nurun Newaz Chairman Electro Mart Limited, Chairman 30.00%
Trade International Marketing Ltd., Chairman 35.00%
Newaz International Ltd., Managing Director 35.00%
The Royal Bengal Agency, Proprietor 100.00%
Royal International, Proprietor 100.00%
Central Insurance Company Ltd., Shareholder 5.00%
2 Mr. Mostafizur Rahman Vice Chairman Sirina Garments & Textiles Ltd., Chairman & Managing Dircetor 25.00%
RMS Textile & Apparels Ltd., Chairman & Managing Dircetor 16.67%
Dragoni Fashions Ltd., Chairman & Managing Dircetor 35.00%
CNS Ltd. , Chairman 16.00%
Crown Housing Ltd., Chairman 33.33%
3 Mr. A.S. M. Main Uddin Monem Director Abdul Monem Ltd., Director 15.00%
Abdul Monem Sugar Refinery Limited, Director 41.67%
AM Energy Limited, Director 15.00%
AM Pharma Ltd., Managing Director 17.50%
AM Securities & Financial Services Ltd., Managing Director 80.00%
Igloo Ice Cream Limited, Director 16.67%
Service Engin BD Limited 10.00%
Igloo Foods Limited, Director 25.00%
Igloo Dairy Limited, Director 25.00%
AML Infotech Limited, Director 10.00%
AM Channel Limited, Director 25.00%
Jainab Enterprise, Proprietor 100.00%
Jainab Overseas, Proprietor 100.00%
Pragati Insurance Co. Ltd., Director 0.20%
4 Mr. Nurul Islam Director Unilac Sanowara (BD) Ltd., Managing Director 25.50%
Sanowara International Products Ltd., Managing Director 38.18%
Sanowara Garments Ltd., Managing Director 40.00%
Sanowara Drinks & Beverage Industries Ltd., 26.34%
Sanowara Plastic Products Ltd., Managing Director 28.57%
Sanowara Poultry & Hatchery Ltd., Managing Director 40.04%
Sanowara Packaging Industries Ltd., Managing Director 45.76%
Sanowara Dairying Industries Ltd., Managing Director 33.66%
Sanowara Dairy Foods Ltd., Managing Director 25.00%
Sanowara Consumer Products Limited, Managing Director 22.22%
Sanowara Holdings Limited, Managing Director 20.00%
Sanur Hatchery & Feed Processing Limited, Managing Director 28.57%
5 Mr. Md. Abdul Awal Director Prime Group of Industries Limited, Chairman & M.D. 20.00%
Prime Energy Limited, Managing Director 35.00%
Prime Textile Spinning Mills Limited, Managing Director 14.70%
Prime Composite Mills Limited, Managing Director 6.51%
Prime Steel Re-Rolling Mills Ltd., Managing Director 0.26%
Prime Dairy & Poultry Ind. Limited, Managing Director 80.00%
Prime Fisheries Industries Limited, Managing Director 80.00%
Prime Trans National Limited, Managing Director 80.00%
Prime Peoples Property Limited, Managing Director 80.00%
Annexure-G
Statement of the Name of the Directors and the entities in which they have interest as on June 30, 2011
National Credit and Commerce Bank Limited
Prime World Trade Limited, Managing Director 80.00%
Prime Super Printing Mills Limited, Managing Director 80.00%
Prime Synthetic Limited, Managing Director 80.00%
Prime Weaving Mills Limited, Managing Director 80.00%
SL.
No.Name of Directors
Status with
the
NCCBL
Name of the firms/companies in which
interested as proprietor, partner, director,
managing agent, guarantor, employee etc.
% of
interest
Mr. Md. Abdul Awal Director Prime Dyeing & Finishing Mills Limited, Managing Director 80.00%
Prime Blended Yarn Mills Limited, Managing Director 80.00%
Prime Melange Spinning Mills Limited, Managing Director 4.56%
Prime Knitwears Limited, Managing Director 60.00%
Prime Information Technologies Limited, Managing Director 50.00%
Prime Textile Fabrics Limited, Managing Director 75.00%
Prime Knit Fabrics Limited, Managing Director 75.00%
Prime Fine Yarn Mills Limted, Managing Director 60.00%
Prime Ship Breakers Limited, Chairman 50.00%
Prime Ship Recycling Limited, Chairman 15.50%
Prime FSS Ship Breakers Ltd., Chairman 20.00%
Prime Financial Consultants & Equities Limited, Shareholder 48.29%
Steel Enterprise Limited, Managing Director 0.80%
Doleswar Iron & Eng. Works Limited, Managing Director 6.00%
Unique Steel Industries Limited, Managing Director 8.33%
Jahanabad Ship Breakers Limited, Chairman 50.00%
6 Mr.Amjadul Ferdous ChowdhuryDirector
B.S.A. Garments Ind. (Pvt.) Limited, Managing Director 19.00%
B.S.A. Garments Ind.(Pvt.) Ltd., Managing Director 19.00%
B.S.A. Fashion Ltd., Managing Director 50.00%
B.S.A. Apparels Limited, Managing Director 25.00%
Vanguard Garments Ltd., Managing Director 50.00%
Vanguard Fashion Ltd., Managing Director 35.00%
Vanguard Shares & Securities Ltd., Chairman 5.00%
Vanguard Packages Ltd., Managing Director 33.00%
Vanguard Dresses Limited, Managing Director 33.00%
Glare Fashion Limited, Managing Director 50.00%
Royal Cement Ltd., Chairman 10.00%
Brave Royal Shipping Limited, Managing Director 20.00%
Vanguard Maritime Limited, Chairman 30.00%
Royal P P Bags Limited, Chairman 15.00%
Harrods Garments Ltd., Chairman 25.00%
Glare Trading, Proprietor 100.00%
7 Mr. S.M. Abu Mohsin Director J. M. Fabrics Limited, Chairman79.88%
Brothers Oxygen Ltd., Managing Director 80.00%
Food of Accomodation Limited, Chairman 19.10%
8 Mrs. Masuda Begum Director Arrow Fashion (Pvt) Ltd., Managing Director 42.85%
Neox Garments Ltd., Managing Director 36.66%
Kashmir Garments Ltd., Managing Director 35.55%
Arrow Fabrics (Pvt) Ltd., Chairperson 62.50%
EVE's Harbal Beauty Care Saloon, Managing Partner 50.00%
9 Mrs. Lutfun Nahar Begum Director Wazhico International Ltd 9.37%
Sagarika Textile Ltd. 12.50%
10 Mr. Abdus Salam Director The Bengal Electric Ltd., Managing Director 74.00%
Multiple Equipment & Engineering Ltd., Managing Director 60.00%
Gangatia Fisheries Ltd., Managing Director 20.00%
Bengal Shipyard Ltd. (Bengal Energy Ltd.), Managing Director 60.00%
11 Mr. Mahbubul Alam Tara Director Bangladesh Progressive Enterprise Press Ltd. 31.29%
Managing Director
Progressive Poly-Pack Ltd., Managing Director 22%
12 Mrs. Sohela Hossain Director Mir Akhter Hossain Ltd., Director 15.00%
Mir Cement Ltd., Director 31.88%
Mir Real Estate Ltd., Director 25.00%
Mir Concrete Products Ltd.,Director 35.16%
Mir Telecom Ltd., Chairperson 12.37%
Mir Power Ltd., Director 25.00%
SL.
No.Name of Directors
Status with
the
NCCBL
Name of the firms/companies in which
interested as proprietor, partner, director,
managing agent, guarantor, employee etc.
% of
interest
13 Mr. Ainul Kabir Director Nil Nil
14 Mr. Khondkar Zakaria Mahmud Director Home Creations Ltd., Managing Director 40.00%
Kriya Consulting Limited, Director 20.00%
Agro Futures Limited, Director 20.00%
15 Mr. Md. Shahjahan Director Nil Nil
16 Mr. Yakub Ali Chairman Ali Fashion Limited, Chairman 23.81%
Anowara Apparels Ltd., Chairman 22.22%
Anowara Fashions Ltd., Chairman 21.83%
Anowara Paper Mills Ltd., Chairman 35.00%
Bangladesh Fertilizer & Agro Chemicals Ltd., Director 18.35%
Diamond Cement Ltd., Chairman 11.56%
Habib Printers & Publisher Ltd., Chairman 33.35%
Habib Share & Securities Ltd., Chairman & Managing Director 16.67%
Habib Sons, Managing Partner 1:03
Habib Steels Ltd., Chairman 33.34%
HG Aviation Limited, Director 8.33%
Legacy Fashion Ware Ltd., Chairman 10.60%
Maam Textile Mills Limited, Chairman 16.00%
MTS Re-Rolling Mills Ltd., Chairman 23.34%
Mudys Navigation Ltd., Chairman 35.00%
Noor Garments Ltd, Chairman 31.25%
Regent Fabrics Ltd., Chairman 16.67%
Regent Power Ltd., Chairman 13.33%
Regent Spinning Mills Ltd., Chairman 14.00%
Regent Textile Mills Ltd., Chairman 22.11%
Regent Weaving Ltd., Chairman 33.33%
Saims Superior Limited, Chairman 1.00%
Valiant Fashion Ware Ltd., Chairman 16.67%
Valiant Garments Ltd., Chairman 16.84%
17 Mr.Ali Imam Director Vest-Thread and Accessories Ltd., Director 51.00%
Sam Sweater Ltd., Director 20.00%
Prime Shrimp Hatchery Ltd., Director 30.00%
Imam Accessories Ltd., Director 20.00%
Ben Hossain Holding Ltd., Director 50.00%
Ranal Designers Ltd., Director 25.00%
Imam Real Estate Ltd., Director 20.00%
River View Holding Ltd., Director 50.00%
Dress Designers Ltd., Director 50.00%
Imam Dyeing Knitting Printing & Finishing Ind.Ltd., Director 65.00%
18 Mr. Tofazzal Hossain Director Agro Equipments Ltd., Chairman 40.00%
Protik Ceramic Ind. Ltd., Chairman 40.00%
National Life Insurance Co. Ltd., Chairman 0.23%
Islami Insurance Bangladesh Ltd., Chairman 5.00%
New Nation Garments Ltd., Managing Director 60.00%
T.H. Fashions, Proprietor 100.00%
New Generation Trading, Proprietor 100.00%
T.H. Packages, Proprietor 100.00%
Great walls Land Properties Ltd., Director 30.00%
19 Mr. Fakhrul Anwar Director Golden Inn Chattagram Ltd. 30.00%
Managing Director
Federal Insurance Co Ltd., Director 2.00%
Holy Crescent Hospital Ltd., Director 3.00%
Fakhrul Anwar & Bros, Proprietor 100.00%
Neptune Motors Ltd., Director 13.00%
SL.
No.Name of Directors
Status with
the
NCCBL
Name of the firms/companies in which
interested as proprietor, partner, director,
managing agent, guarantor, employee etc.
% of
interest
20 Mr. Md.Humayun Kabir Director Cross Trade Shipping Services Ltd., Managing Director 50.00%Tuly Trading House, Proprietor 100.00%
21 Mr. Din M. Rana Director National Life Insurance Company Limited, Shareholder 0.03%
The White Castle Limited, Chairman 10.00%
Hotel Lake Castle Limited, Director 25.00%
Bestclean Limited, Managing Director 64.44%
Rigs Limited, Managing Director 77.58%
Rigs Aviation Limited, Managing Director 20.00%
Rigs Publication Limited, Managing Director 50.00%
Rigs Properties Ltd, Managing Director 50.00%
Rigs Organic Fertilizer Ltd. Director 51.00%
NRB World Club Ltd. Director 14.29%
Alliance Capital Management Ltd. Director 10.00%
Rigs Fisheries Prokalpa, Proprietor 100.00%
Rigs Marketing, Managing Director 50.00%
Rigs Herbs, Proprietor 100.00%
Cox's Inn, Proprietor 100.00%
Madina Industrial Corporation (USA), President 90.00%
Modina Corporation (USA), President 90.00%
Shaptahik Kagoj Inc.(USA), President 95.00%
22 Mr. Md. Abul Bashar Director Prime Group of Industries Limited, Dy. Managing Director 1.00%
Prime Energy Limited, Dy. Managing Director 5.00%
Prime Textile Spinning Mills Limited, Dy.Managing Director 0.34%
Prime Composite Mills Limited, Dy. Managing Director 0.22%
Prime Steel Re-Rolling Mills Ltd., Dy. Managing Director 0.01%
Prime Dairy & Poultry Ind. Limited, Dy. Managing Director 3.00%
Prime Fisheries Industries Limited, Dy.Managing Director 3.00%
Prime Trans National Limited, Dy. Managing Director 2.00%
Prime Peoples Property Limited, Dy. Managing Director 2.00%
Prime World Trade Limited, Dy. Managing Director 2.00%
Prime Super Printing Mills Limited, Dy.Managing Director 2.00%
Prime Synthetic Limited, Dy. Managing Director 2.00%
Prime Weaving Mills Limited, Dy. Managing Director 2.00%
Prime Dyeing & Finishing Mills Limited, Dy. Managing Director 2.00%
Prime Blended Yarn Mills Limited, Dy. Managing Director 2.00%
Prime Melange Spinning Mills Limited, Dy. Managing Director 4.54%
Prime Knitwears Limited, Dy. Managing Director 5.00%
Prime Information Technologies Limited, Dy. Managing Director 25.00%
Prime Textile Fabrics Limited, Dy. Managing Director 5.00%
Prime Knit Fabrics Limited, Dy. Managing Director 5.00%
Prime Fine Yarn Mills Limted, Dy. Managing Director 5.00%
Prime Ship Breakers Limited, Managing Director 10.00%
Prime Ship Recycling Limited, Managing Director 10.00%
Prime FSS Ship Breakers Ltd., Managing Director 6.00%
Prime Financial Consultants & Equities Limited, Shareholder 16.46%
Steel Enterprise Limited, Dy. Managing Director 0.02%
Doleswar Iron & Eng. Works Limited, Dy. Managing Director 3.00%
Unique Steel Industries Limited, Dy. Managing Director 4.17%
Jahanabad Ship Breakers Limited, Managing Director 10.00%
23 Mr. Md. Harunur Rashid Director Nazma Construction Company, Proprietor 100.00%
NCC Consortium, Proprietor 100.00%
Apurba Embrioidery, Proprietor 100.00%
HR Bricks, Proprietor 100.00%
Nazma Construction Company Consortium, Proprietor 100.00%
Faridgonj Fisheries Ltd., Managing Director 95.00%
Global Insurance Ltd., Sponsor 2.16%
24 Mr. Khairul Alam Chaklader Director Desh Medical College & Hospital , Chairman 25.00%Gulshan Point (Pvt) Ltd., Managing Director 30.00%Gold Vision Industries Ltd., Managing Director 50.00%Urban Responses Ltd., Managing Director 50.00%Eastern Logistics Ltd., Director 10.00%Maxwell Electronics, Proprietor 100.00%
25 Mr. Md. Moinuddin Director Nil Nil
26 Professor Shahid Uddin Ahmed, Ph.D. Independent
Director Nil Nil
Annexure-H
1 Habib Shares & Securities Ltd. Managing Director Mr. Yakub Ali SOD(G) - - -
2 New Generation Trading Proprietor Mr. Tofazzal Hossain CC(H) 103.90 - 103.90
3 Self - Mr. Mahabubul Alam Tara HBL 48.23 - 48.23
Prograsive poly pack Limited Managing Director Loan (G) 70.95 - 70.95
4 M/S. Fahad Traders Proprietor Mr. Fakrul Anowar CC(H) 38.83 - 38.83
5 M/s.Mr.A.Parvez Chowdhury Guarantor Mr.Amjadul Ferduse Chowdhury CC(H) 197.02 - 197.02
Self - Mr. Humayun Kabir SOD(G) 76.14 - 76.14
6 Chicks Field Guarantor Mr. Nurul Islam CC(H) 9.88 - 9.88
Sanowara Drinking & Bevarage Inds. Ltd. Managing Director B/G - 6.17 6.17
Sanowara Dairy & Food Ltd. Managing Director B/G - 18.45 18.45
7 Samsong Corporation Guarantor Mr. Khairul Alam Chaklader CC(H) 147.00 102.79 249.79
LTR - -
8 Prime Steel Re-rolling Mills Limited Managing Director Mr.Md. Abdul Awal B/G - 1.11 1.11
Total 691.95 128.52 820.47
National Credit and Commerce Bank Limited
SL.
No.
Outstanding
(Funded)
The Significant Related party transactions during the year were as follows:
Related Party Transactions:
Directors relation
with the concern
Related Party Transactions:
as at June 30, 2011
Outstanding
(Non-funded)
The Bank in normal course of business has had transactions with other entities that fall within the definition of Related party as contained in Bangladesh Accounting
Standards (BAS-24) (Related Party Disclosures) and as defined in the BRPD Circular # 14 dated 25 June 2003.
Representing DirectorsName of the Organization Total
Outstanding
Nature of
Transaction
Figure in Lac
Annexure-I
Accounting
Year
Assessment
Year
Current Tax
Provision as per
accounts
Tax Liability as
per Assessment
Order/Return
Excess/
(Shortage)
provision
Advance
Income Tax
paid
Dues/
(Refund) Remarks
1 2 3 4 5=(3-4) 6 7=(4-6) 8
2001 2002-2003 139,829,928 146,692,885 (6,862,957) 139,829,928 6,862,957 The Bank has filed appeal with the High Court Division
of the Supreme Court of Bangladesh against appeal
decision for excess tax liability of Tk.68.63 lac which has
remained pending till date.2003 2004-2005 163,388,876 86,888,016 76,500,860 159,999,990 (73,111,974) According to revised assessment and appeal decision tax
liability comes to Tk.8.69 crore and refund of Tk.7.31
Crore against which tax department has filed an appeal
with Appellate Tribunal, The Appellate Tribunal kept the
decision of DCT unchanged against which the Bank has
filed appeal with High Court Division to established it's
right under first proviso to section 82 of ITO-1984.
2004 2005-2006 221,398,901 222,971,622 (1,572,721) 226,708,126 (3,736,504) Assessment Completed
2005 2006-2007 322,623,135 322,779,734 (156,599) 322,779,734 - Assessment Completed
2006 2007-2008 518,131,245 571,482,877 (53,351,632) 544,969,341 26,513,536 Assessment completed under section 82B/120/173 of
ITO 1984, but the Bank has filed an appeal to Appellate
Tribunal.2007 2008-2009 739,994,184 768,858,741 (28,864,557) 735,898,823 32,959,918 Assessment completed under section
82BB/(3)/83(2)/120/173 of ITO 1984, but the Bank has
filed an appeal to the Appellate Tribunal.2008 2009-2010 828,016,517 842,248,545 (14,232,028) 828,016,518 14,232,027 The Bank has filed second appeal to the Appellate
Tribunal to established its rights as per income tax
return.2009 2010-2011 768,839,222 768,839,222 - 768,839,222 - Return filed but assessment order yet to receive.
2010 2011-2012 1,057,110,305 1,058,426,103 (1,315,798) 1,058,426,103 - Return filed but assessment order yet to receive.Total 4,759,332,313 4,789,187,745 (29,855,432) 4,785,467,785 3,719,960
National Credit and Commerce Bank LimitedCorporate Tax Position
as on June 30, 2011
Annexure-J
a.(i) Disclosure regarding outstanding Repo as on 30 June, 2011.
Sl No Counter Party Name Agreement Date Reversal Date
Amount
(Ist leg cash
consideration)
01 Bangladesh Bank 30.06.2011 03.07.2011 6,963,979,977
-
6,963,979,977
a.(ii) Disclosure regarding outstanding Reverse Repo as on 30 June, 2011.
Sl No Counter Party Name Agreement Date Reversal Date
Amount
(Ist leg cash
consideration)
-
b.Disclosure regarding overall transaction of Repo and Reverse repo.
Minimum
outstanding during
the year
Maximum
outstanding during
the year
Daily average
outstanding during
the yearSecurities sold undrer repo:
i) with Bangladesh Bank 8,351,313,091 6,176,958,486
ii)with other banks& FIs 1,993,460,852 902,239,837
Securities Purchased undrer repo: i)from Bangladesh Bank
ii)from other banks& FIsNIL
National Credit and Commerce Bank Limited Financial Statements for the year ended June 30, 2011
Total
Total
NIL
Annexure-K
Sl.
No. Particulars At June 30, 2011At December 31,
2010
1 Paid-up Capital 5,941,654,350 4,501,253,300
2 Total Capital 10,843,328,981 10,033,986,280
3 Capital surplus / (Deficit) 1,953,317,981 1,760,322,280
4 Total Assets 95,118,945,559 83,554,177,553
5 Total Deposits 76,514,359,374 67,961,244,777
6 Total Loans & Advances 67,084,100,333 63,230,141,628
7 Total Contingent Liabilities 19,603,038,708 17,492,550,575
8 Credit Deposit Ratio 0.88:01 0.93:01
9Percentage of classified loans against total Loans &
Advances 4.87% 2.27%
10 Profit after tax & provision 812,193,769 2,371,678,769
11Amount of classified loan during
current year3,225,499,000 1,425,280,000
12 Provision kept against classified Loans 1,337,100,001 742,802,000
13 Provision surplus / (deficit) - -
14 Cost of Fund ( %) 10.53% 9.31%
15 Interest earning Assets 86,644,364,550 74,691,625,856
16 Non-interest earning Assets 8,474,581,009 8,862,551,697
17 Return on Investment (ROI) 11.34% 14.95%
18 Return on Assets (ROA) 1.71% 2.84%
19 Income from Investment 1,057,474,096 1,642,016,484
20 Earning per Share ( Taka) 1.37 5.33
21 Net income per Share (Taka) 1.37 5.33
22 Price Earning Ratio (Times) - 12.91
Sd/-
Deputy Managing Director &
Chief Financial Officer
Mohammed Nurul Amin
Managing Director &
Chief Executive Officer
National Credit and Commerce Bank Limited and its Subsidiary
CONSOLIDATED FINANCIAL HIGHLIGHTSFor the period ended June 30, 2011
A.K. Md. Siddique
Sd/-
Annexure-L
Sl.
No. ParticularsAt June 30,
2011
At December 31,
2010
1 Paid-up Capital 5,941,654,350 4,501,253,300
2 Total Capital 10,843,328,981 10,033,986,280
3 Capital surplus / (Deficit) 1,953,317,981 1,760,322,280
4 Total Assets 94,974,352,845 83,554,177,553
5 Total Deposits 76,469,631,744 67,961,244,777
6 Total Loans & Advances 66,689,531,578 63,230,141,628
7 Total Contingent Liabilities 19,603,038,708 17,492,550,575
8 Credit Deposit Ratio 0.87:01 0.93:01
9Percentage of classified loans against total Loans &
Advances 4.87% 2.27%
10 Profit after tax & provision 730,327,091 2,371,678,769
11Amount of classified loan during
current year3,225,499,000 1,425,280,000
12 Provision kept against classified Loans 1,337,100,001 742,802,000
13 Provision surplus / (deficit) - -
14 Cost of Fund ( %) 10.53% 9.31%
15 Interest earning Assets 86,227,171,327 74,691,625,856
16 Non-interest earning Assets 8,747,181,518 8,862,551,697
17 Return on Investment (ROI) 11.35% 14.95%
18 Return on Assets (ROA) 1.54% 2.84%
19 Income from Investment 1,057,474,096 1,642,016,484
20 Earning per Share ( Taka) 1.23 5.33
21 Net income per Share (Taka) 1.23 5.33
22 Price Earning Ratio (Times) - 12.91
Sd/-
National Credit and Commerce Bank Limited
FINANCIAL HIGHLIGHTS OF THE BANKAs on June 30, 2011
A.K. Md. Siddique
Sd/-
Deputy Managing Director &
Chief Financial Officer
Mohammed Nurul Amin
Managing Director &
Chief Executive Officer
Annexure-M-1
30 June 2011
Taka
Share Capital 3 250,000,000
Retained Earnings 4 81,866,677
Total Sources of Funds 331,866,677
APPLICATION OF FUNDS:
Non current Assets
Property, Plant & Equipment 5 14,680,184
Investments-Memberships at cost 6 19,401,385
Intangible Assets 7 672,000
Preliminery Expenses 8 3,185,367
37,938,936
Current Assets
Advance and prepayments 9 10,000
Margin Loan to Customer 10 2,823,976,005
Accounts Receivable 11 19,947,578
Cash and Cash Equivalents 12 3,229,031
2,847,162,614
Current Liabilities
Accounts payable 13 111,377,995
Short Term Loan 14 2,429,407,250
Provision for Expenses 15 557,652
Provision for Income Tax 16 11,892,975
2,553,235,872
Net Current Assets 293,926,742
Total Application of Funds 331,865,678
Sd/- Sd/-
Kazi Rafiquzzaman Md. Manjum Ali
Vice President Senior Vice President
NCCB Securities and Financial Services Limited
Statement of Financial Position
As on 30 June 2011
The annexed notes form an integral part of these financial statements.
NotesSOURCES OF FUNDS:
1
Annexure-M-2
30 June 2011Taka
Operating Income:
Brokerage Commission 17 71,006,718
Interest on Margin Loan 18 166,706,647
Other Operating Income 19 2,032,788
239,746,153
Less: Operating Expenses 20 4,411,388
Net Income from Operation 235,334,765
Less: Office & Administrative Expenses 21 20,486,357
Profit before Financial Expenses 214,848,408
Less: Financial Expenses 22 112,127,087
Net Profit before Tax 102,721,321
Less: Provision for Income Tax 23 20,854,643
Net Profit/(Loss) after Tax 81,866,678
Sd/- Sd/-
Kazi Rafiquzzaman Md. Manjum Ali
Vice President Senior Vice President
The annexed notes form an integral part of these financial statements.
NCCB Securities and Financial Services LimitedStatement of Comprehensive Income
For the Period from 07 March to 30 June 2011
Notes
2
Annexure-M-3
30 June 2011 Taka
A. Cash Flow from Operating Activities:
Net Profit/(Loss) after Tax 81,866,677
Adjustments for:
Depreciation 878,020
82,744,697
Changes in Current Assets and Liabilities:
Increase in:
Receivable from Client (2,823,976,005)
Receivable from DSE (16,549,353)
Receivable from CSE (3,398,225)
Advance against Office Rent (11,000)
DSE Membership (400,385)
CSE Membership (19,001,000)
Increase in:
Accounts payable 111,377,995
Liabilities for Expenses 557,652
Provision for expenses 11,892,976
Net cash flow from operating activities (2,656,762,648)
B. Net Cash flow from Investing Activities
Acquisition of Fixed Assets (15,558,204)
Intangible Assets (672,000)
Preliminery Expenses (3,185,367)
Net cash used in investing activities (19,415,571)
C. Cash Flow from Financing Activities:
Loan from NCC Bank 2,429,407,250
Issue of Share Capital 250,000,000
Net cash flow from financing activities 2,679,407,250
Net Increase / Decrease, Cash or Cash Equivalent (A+B+C) 3,229,031
Opening Cash and Cash equivalents -
Closing Cash & Cash Equivalents 3,229,031
Sd/- Sd/-
Kazi Rafiquzzaman Md. Manjum Ali
Vice President Senior Vice President
Statement of Cash Flows
NCCB Securities and Financial Services Limited
For the Period from 07 March to 30 June 2011
3
Annexure-M-4
Particulars Paid up Capital Statutory
Reserve
General
Reserve
Other
Reserve
Retained
Earnings Total
Tk. Tk. Tk. Tk. Tk. Tk.
Opening Balance 07.03.2011 250,000,000 - - - - 250,000,000
Net Profit after Tax - - - - 81,866,678 81,866,678
Balance as of March 31, 2011 250,000,000 - - - 81,866,678 331,866,678
Sd/- Sd/-
Kazi Rafiquzzaman Md. Manjum Ali
Vice President Senior Vice President
NCCB Securities and Financial Services Limited
Statement of Changes in Equity
For the Period from 07 March to 30 June 2011
4
Annexure-M-501
1.1
1.2
2
2.1
2.2 Functional and presentational currency
2.3 Use of estimates and judgments
Revenue Recognition:
2.4 Cash flow statement:
2.5 Property, plant and equipment
Recognition and measurement
Subsequent costs
NCCB Securities and Financial Services Ltd. as a Subsidiary company of NCC Bank Limited has been
incorporated as a private limited company with the Registrar of Joint Stock Companies and Firms,
Dhaka, Bangladesh bearing Registration No.C - 83683/10 dated April 04, 2010 under the Companies
Act, 1994 effect from 07 March 2011 having registered office at 195, Sena Kalayan Bhaban, Suite #
1504 (15th floor), Motijheel C/A, Dhaka-1000.
Significant Accounting Policies & Other Material Information:
Legal Form of the entity:
The Financial Statements, namely, Statement of Financial Position, Statement of Comprehensive
Income, Statement of Cash Flows, Statement of Changes in Equity and relevant notes thereto, of
NCCB Securities and Financial Services Limited are prepared on a going concern and accrual basis
under historical cost convention, Bangladesh Accounting Standards (BAS) as adopted by the Institute
of Chartered Accountants of Bangladesh (ICAB), Companies Act-1994, and other laws and rules
applicable thereto.
Nature of Business :
Significant Accounting Policies
The cost of replacing part of an item of property, plant and equipment is recognised in the carrying
amount of the item if it is probable that the future economic benefits embodied within the part will
NCCB Securities and Financial Services Limited
Notes to the Financial Statements
For the Period from 07 March to 30 June 2011
Basis of Preparation of Financial Statements
The Main objective of the company is to act as a full fledged Stock Broker & Stock Dealer to execute
buy and sell order and to maintain own portfolio as well as customers portfolio under the discretion of
customers. The company also performs the other activities relates to Capital Market as and when
regulators permits the company to carry out activities as per their guidelines.
These financial statements are prepared in Bangladesh Taka (Taka/Tk), which is the Company’s
functional currency. All financial information presented in Taka has been rounded to the nearest
integer.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revision of accounting
estimates are recognized in the period in which the estimate is revised and in any future periods
affected.
ii Interest income on STD & Margin Loan Account is recognized when the respective banks credited
on accounts.
Cash flow statement has been prepared as per Bangladesh Accounting Standard BAS 7 Under Indirect
Method.
Income from brokerage commission is recognised on daily basis in the profit and loss account after
receiving the trading note of securities transacted from Dhaka Stock Exchange Limited & Chittagong
Stock Exchange Limited, at which point performance is assured to be completed.
The preparation of financial statements requires management to make judgments, estimates and
assumptions that affect the application of accounting policies and the reported amounts of assets,
liabilities, income and expenses. Actual results may differ from these estimates.
Items of property, plant and equipment are measured at cost less accumulated depreciation and
impairment losses, if any. Cost includes expenditures that are directly attributable to the acquisition
of the asset.
5
Depreciation
2.6 Intangible assets
Recognition and measurement
Amortisation of intangible assets
Intangible assets are amortised at the rate of 20% on diminishing balance
Provision for Current tax
2.7 General
ii. Figures have been rounded off to the nearest taka.
June 30, 2011 03 Share Capital
3.1 Authorised Capital
(10,000,000 shares @ of Tk. 100 each) 1,000,000,000
1,000,000,000
3.2 Issued, Subscribed and Paid up Capital(2,500,000 Shares @ of Tk. 100 each) 250,000,000
250,000,000
3.3 Particulars of Shareholders and their Shareholdings:
Shareholders Number of Share Amount in BDT
NCC Bank Limited 2,499,999 249,999,900 Mr. Gazi Hassan Mahmood 1 100
250,000,000 4 Retained Earnings
Opening balance - Add: net profit during the year 81,866,677 Closing retained earnings 81,866,677
5 Property, plant & Equipment
Property Plant & Equipment at Cost 22,045,263 Less: Accumulated Depreciation 7,365,079 Total: 14,680,184
Annexure-'I' may kindly be seen for details.
6 Investments-Memberships at cost:Membership of Dhaka Stock Exchange Limited 400,385 Membership of Chittagong Stock Exchange Limited 19,001,000
19,401,385
7 Intangible AssetsSoftware at cost 820,000 Less: Amortization during the period 148,000
672,000
8 Preliminary ExpensesTrade Licence & Tin Certificate 14,100 Securities & Exchange Comission Charge 90,000
Computer software acquired by the Company, which have finite useful lives, are measured at cost
less accumulated amortisation.
Depreciation is charged to property, plant and equipment & Furniture & Fixture on a diminishing
balance method at rates varying from 20% & 10% to 20%.
amount of the item if it is probable that the future economic benefits embodied within the part will
flow to the Company and its cost can be measured reliably. The costs of the day-to-day servicing of
property, plant and equipment are recognised in the profit and loss account as incurred.
Provision for tax is assessed under section 82C of the Income Tax Ordinance (ITO) 1984 on income
from company's normal course of business and at 37.5% on company's income from other sources.
Under section 82C, income tax deducted under certain sections of the ITO is treated as final
discharge of tax payer's tax liabilities from that source.
6
June 30, 2011 Registration fee RJSC 474,225 Stamp & Share Charges (Rah. & Assaciates) 85,000 Salman Siddiqur Rahman for TIN 6,000 Audit Fee (Rah. & Mostafa) 15,000 DSE Entrance Fee & Club Member Fee 1,500,000 Stock Broker Registration Fee 40,000
DSE ,CSE Membership & Transfer Fee 1,811,021
4,035,346
Less: Amortization during the period 849,979
3,185,367
9 Advance and Prepayment:
Suspense Account Sundry debtors 10,000
Security Deposit into T & T 1,000 11,000
10 Margin Loan to Clients
Margin Loan to Clients 2,823,976,005
11 Accounts Receivable
Receivable from Dhaka Stock Exchange Limited 16,549,353
Receivable from Chittagong Stock Exchange Limited 3,398,225
19,947,578
12 Cash and Cash equivalents
Cash in Hand 5,948
Cash at Bank Balances:
IFIC Bank Ltd. STD Bank A/C # 1090-000294-041 3,215,703
NCC Bank Limited Current Deposit A/C # 0002-0210024283 7,380
3,229,031
13 Accounts Payable
Security Deposit 24,677,630
Sundry Creditors 20,050,000
Payable to CDBL 3,704,551
Payable to CSE Spot 48,128
Payable to Suppliers 1,795,000
Payable to NCC Bank Limited 61,102,686
111,377,995
13.1 Payable to NCC Bank Ltd.
Fixed Assets 15,523,731
Profit earned from January 01, 2011 to March 06, 2011 45,578,955
61,102,686
14 Short Term Loan - Bank Overdraft
NCC Bank Ltd. A/C # 012-000-2511 2,429,407,250
2,429,407,250
15 Liabilities for expenses
Office Rent Expenses 1,713
LFA Expenses 149,400
Mobile Bill 34,212
Salary & Wages 372,327
557,652
16 Provision for Income TaxOpening balance - Add: provision made during the period 20,854,643
7
June 30, 2011 20,854,643
Less: Adjusted during the period - 20,854,643
Less: Advance income tax paid and deducted at sourcesOn Brokerage CommissionTax deducted by Dhaka Stock Exchange Limited 8,370,855 Tax deducted by Chittagong Stock Exchange Limited 590,813
8,961,668
Net balance at the end of the period 11,892,975
17 Brokerage Commission
Brokerage Commission DSE 66,277,174
Brokerage Commission CSE 4,729,544
71,006,718
18 Interest on Margin Loan 166,706,647
19 Other Operating Income
Account Opening Fee 95,000
Account Clossing Fee 79,838
BO Account Maintenance Fee 54,800
Service Charge 1,601,800
Margin Account Opening Fee 7,500
Postage Charge Recovery 3,030
Interest of IFIC Bank 190,820
2,032,788
20 Operating ExpensesHowla Charge DSE 784,154 Howla Charge CSE 72,108 Laga Charge DSE 3,348,342 Laga Charge CSE 206,784
4,411,388
21 Office & Administration ExpensesSalary & AllowancesBasic Salary 4,447,194 House Rent Allowance 1,295,158 Entertainment Allowance 234,940 Medical Allowance 472,081 P.F.Contribution 315,584 Casual Wages 109,568 Other Allowances 1,232,269
8,106,794
Rent,taxes,insurance,electricity etc.Rent Office 2,024,611 Taxes 19,082 Electricity Office 277,816
2,321,509
Postage, stamp, telecommunication etc.Postage 16,262 Telephone 72,988 Mobile 119,866 Internet 4,300
213,416
8
June 30, 2011
Stationery, printing, Advertisement etc.Stationery 223,523 Printing 120,845 Advertisement 11,592
355,960
Depreciation and Repair of Bank's assetsDepreciation 878,020 Repair and maintenance of fixed assets 3,161,301 Repair and maintenance of premises 551,150
4,590,471
Other ExpensesEntertainment 254,835 Car expenses 328,000 Papers and periodicals 28,469 Trade Subscription 191,000 Traveling & Conveyance 502,975 Carrying charge 7,740 Laundry and cleaning 12,651 Training expenses 13,575 Water, Sewerage and gas 88,460 CDBL charge 3,360,146 Utility charge 100,000 Liveries & Uniform 4,956 Other 5,400
Total: 4,898,207
Total Office & Administration Expenses 20,486,357
22 Financial Expenses
Interest on Bank Overdraft maintained with NCC Bank Limited, Motijheel Main Branch 112,057,248
Bank Charge 69,839
112,127,087
23 Related Party Transactions
Sd/- Sd/-Kazi Rafiquzzaman Md. Manjum Ali
Vice President Senior Vice President
NCCB Securities & Financial Services Limited (NCCBSFSL) is a fully owned subsidiary company of
National Credit and Commerce Bank Limited (NCCBL). NCCBLSFL was separated from NCCBL on
March 07, 2011. NCCBLSFL has availed BDT.2,429,407,249.63/- from NCCBL as short term loan for its
operating activities.
9
Annexure-M-6
Written Down
ValueBalance as on Addition/Disposal Balance as on Balance as on Charged for Balance as on As on
07.03.11 During the period 30.06.11 07.03.11 the period 30.06.11 30.06.11
Computer & Peripherals 5,780,700 - 5,780,700 10% 2,143,503 353,187 2,496,690 3,284,010
Office Equipment 6,897,414 9,300 6,906,714 20% 1,974,884 305,779 2,280,663 4,626,051
Furniture & Fixture 9,332,676 25,173 9,357,849 20% 2,368,672 219,054 2,587,726 6,770,123
Total: 22,010,790 34,473 22,045,263 6,487,059 878,020 7,365,079 14,680,184
Rate of
Depreciation
NCCB Securities and Financial Services LimitedSchedule of Property, Plant & Equipment
as on June 30, 2011
Cost DepreciationParticulars
9