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Rahman Mostafa Alam & Co.
Charter ed Accountants

PEOPLE'S LEASING AND FINANCIAL SERVICES LTD.


Statement of changes in Equity
For the year ended December 31,2009

Amount In Taka
Statutory Retain ed Total
Part icul ars Paid up Capital Other Reserve
Reserve earninqs Taka
Bal ance as on January 01, 2008 444,860,000 77.141,411 - 167,055,620 689,057,031

Net profit for the year - . · 185,742,125 185,742,125

Transfer to Statutory Reserve . 37,148,425 - (37,148,425) -


Issue of Bonus Share ( Stock Dividend) 155,701,000 - - (155,701,000) -
Balance as at December 31,2008 600,561,000 114,289,836 - 159,948,320 874,799 ,156

Balance as on January 01, 2009 600,561,000 114,289,836 · 159,948,320 874,799,156

Net profit for the year - . - 355,781,826 355,781,826

Transfer to Statutory Reserve - 71,156,365 - (71,156,365) .


Issue of Bonus Share ( Stock Dividend) 120,112,200 - - (120,112,200) -
Balan ce as at December 31, 2009 720,673,200 185,446,201 · 324,461,581 1,230,580 ,982

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rsanman wtostata Aram & co.
Chartered Accountants

PEOPLE'S LEASING AND FINANCIAL SERVICES LTD.


Liquidity St atement

( Asset and Liabil ity Maturity Analysi s)

As at December 31, 2009.

Not more t han


Partic ul ars 1-3 months t erm 3-12 months t erm 1-5 year s t er m Above 5-y ears term Total
1 month t erm

Assets:
Cash in hand 79,249 · · 79,249
Balances with Bangladesh bank
and its agents
14,076,827 · · · · 14,076,8 27

Balances with other banks


and financial institutions
16,467,040 · 311,475,000 · · 327,942,040

Money at call & short notice . · · · · .


Investments 24,442,077 30,552,596 219,978,689 213,868,170 122,210 ,382 611,051,914
Leases, Loans & Advances 667,073,017 592,953,793 2,223,576,724 3,187,126,637 741,192,241 7,411,922,412
Fixed assets indu dinq land, building, furniture & .
fixt ures · · 31, 187,565 40, 107,755 71 ,295,320

Other Assets . · 72,698,255 31,183,570 82,569,870 186,451,695


Total Assets 722,138,210 623,506,389 2,827,7 28,668 3,463,365,942 986,080,248 8,622,819,458
Liabiliti es:
Borrowing from Bangladesh Bank,Other Banks, . . 2,956,479,317 148,029, 760 3,104,509,077
Financial Institutions & agents
Deposits 2,687,009,025 174,027,398 29,283,943 2,890,320,3 66
Other Accounts 661,537 6,6 15,367 1,984, 610 26,46 1,467 30,430, 687 66,153,668
Provision & other liabilities 566,204, 168 570,986, 016 67,860,365 55,008,974 71,195,842 1,331,255,365
Total Liabi lit ie s 566,8 65,705 577,601,383 2,756,854,000 3, 211 ,977,156 278 ,940,232 7,392,238,476
Net Liquidity Gap 155,272,505 45 ,905,006 70,874,668 2 51, 3 88, 78 6 707,140,016 1, 230,580,981

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Rahman Mostafa Alam & Co.
Chartered Accountants

PEOPLE’S LEASING AND FINANCIAL SERVICES LTD.


Notes to the Financial Statements
As of and for the year ended December 31, 2009

1. The Legal Status and Nature of the Company

1.01. Legal Status


People’s Leasing and Financial Services Ltd. is a leasing and financial Company was registered as a
Non Banking Financial Institution (NBFI) under the Financial Institution Act 1993 and the Companies
Act 1994 as a public limited company with license from Bangladesh Bank to operate and transact all
kinds of business as provided under the relevant laws. This Company was authorized to commence
business in Bangladesh as per certificate of commencement dated 26th August 1996. the Company
went for public issue in 2005 and its share are listed in both Dhaka and Chittagong Stock Exchange.
The Company was listed in Dhaka Stock Exchange and Chittagong Stock Exchange on July 20,
2005.

1.02. Nature of Business Activities


The Company extends lease finance for all types of machinery, equipment and household durable
including vehicles both for industrial, commercial and personal use in Bangladesh and also allows
temporary finance to its client within the purview of the law.
1.03. Accounting Convention
The financial statements are prepared under the historical cost convention and therefore, do not take
any consideration the effect of inflation.

2. Significant Accounting Policies


2.01. Basis of Accounting
The financial statements have been prepared and the disclosures of information have been made in
accordance with the requirements of the Financial Institution Act 1993, the Companies Act 1994, the
Securities and Exchange Rules 1987, the Listing Rules of Dhaka and Chittagong Stock Exchanges,
Guide lines of Bangladesh Bank and Bangladesh Accounting Standards and other applicable laws
and regulations.

2.02. Accounting for Leases

With the adoption of BAS 17, The Company has been following finance method of accounting for
lease transaction. The aggregate lease receivable including un-granted residual value are recorded
as gross lease receivable while the excess of gross lease receivable over the total acquisition cost,
including interest during the period of acquiring the lease equipment, constitutes the unearned lease
income. Initial direct costs, if any, in respect of lease are charged in the year in which such costs are
incurred.

The unearned lease income is usually amortized to revenue on a monthly basis over the lease term
yielding a constant rate of return over the period. Unrealized income is suspended, where necessary,
in accordance with the requirement of relevant circular issued by the Financial Institutions Department
of Bangladesh Bank.

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Rahman Mostafa Alam & Co.
Chartered Accountants

2.03. Recognition of Fixed Assets


2.03.1. Assets acquired under Own Finance

These are capitalized at cost of acquisition and subsequently stated at cost less accumulated
depreciation in compliance with the benchmark treatment of Bangladesh Accounting
Standard (BAS)-16; Property, Plant and Equipment. The cost of acquisition of an asset
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. In respect of major projects involving construction, related pre-operational expenses
form part of the value of asset capitalized. Expenses capitalized also include applicable
borrowing cost considering the requirement of BAS 23; Borrowing costs, Expenditure incurred
after the assets have been put into operation, such as repairs and maintenance is normally
charged off as revenue expenditure in the period in which it is incurred. In situation where it
can be clearly demonstrated that the expenditure has resulted in an increase in the future
economic benefit expected to be obtained from the use of the fixed assets, the expenditure is
capitalized as an additional cost of the assets.

Software and all up gradation/enhancement are generally charged off as revenue expenditure
unless they bring similar significant additional benefits.

On disposal of fixed assets, the cost and accumulated depreciation are eliminated and gain or
loss on such disposal is reflected in the income statement, which is determined with reference
to the net book value of the assets and net sales proceeds.

2.03.2. Depreciation of own used Fixed Assets

Depreciation on Property, plant and equipment acquired for Company’s own use is charged
on diminishing balance method at rate varying from 5% and 20% throughout the estimated
useful life of the assets. Additions in any year to fixed assets are depreciated for the full year
irrespective of the date of acquisition of assets.

2.04. Accrued expenses and other payables


Liabilities are recognized for the goods and services received, whether paid or not for those goods
and services.

2.05. Revenue Recognition


Revenue is recognized in accordance with Bangladesh Accounting Standard BAS-18: Revenue
Recognition.

2.05.1. Lease Income

The excess of gross lease rental receivable over the cost of the leased assets constitutes the
total unearned income at the commencement of the execution of lease. This income is
allocated over the period of lease that reflects a constant periodic return on the net
investment. The pattern of the periodic return is, however, differs in case of structured lease
finance depending on the structure of the particular lease contract. Income is recognized
when it is earned, i.e. income on due installation on unclassified lease irrespective of whether
received or not. Income is not taken into profit and loss account when a lease is classified
and keeps it in interest suspense account as income as earned when it is received.

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Rahman Mostafa Alam & Co.
Chartered Accountants

2.05.2. Income from loans and advances

Interest income on Loans and Advances is recognized on accrual basis. Installment


comprises both interest and principal. Interest part of the installment that becomes receivable
is recognized as income in the financial statements. Interest on Loans and Advances ceases
to be taken into income when such loan and advances are classified and kept in interest
suspense account. Interest on classified loan is accounted for on cash basis.

2.05.3. Income from term finance

Interest income on term finance is recognized on accrual basis. Installment comprises both
interest and principal. Interest part of the installments that become receivable is recognized
as income in the financial statements. Interest on term finance ceases to be taken into
income when such term finance are classified and kept in interest suspense account. Interest
on classified term finance is accounted for on cash basis.

2.05.4. Dividend Income


Dividend income from ordinary shares is recognized during the period in which they are
declared in AGM irrespective of whether receive or not.

2.05.5. Fee based income


Fee based income on cash basis.

2.05.6. Gain on sale of securities


Capital gain on sale of securities listed in the stock exchanges is recorded only when the
securities are sold in the market.

2.06. Interest Suspense Account


Rental / interest income overdue beyond 3 months on account of Lease, Loan etc. are not recognized
as income rather than credited to interest suspense account.
During the year Tk. 43,411,495 has been provided in the accounts against lease rental Tk.
Recovery of overdue credited to interest suspense account is recognized as income on cash basis.

2.07. Employees Retirement Benefit Plan


A. Provident Fund:

The company operates a contributory provident fund for its employee. Separate Board of Trustees
administers the fund. The fund approved by the National Board of Revenue.

B. Gratuity Fund:
Gratuity benefit is accounted for in the Books at the time of payment. Quantum of gratuity benefit has
not yet been calculated as per BAS-19.

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Rahman Mostafa Alam & Co.
Chartered Accountants

2.08. Income Tax


2.08.1. Current Tax

Provision for current income tax has been made @ 42.5% on accounting profit made by the
company as per Finance Act 2008. As all previous years final assessment have not been
received by us for which disallowances made upon respective head of accounts have not
been considered in current year tax calculation.

2.08.2. Deferred Tax

As per Bangladesh Accounting Standard-12 deferred tax is required to be provided using the
liability method for all temporary timing differences arising between the tax base of assets and
liabilities and their carrying value for financial reporting purpose. No provision has been made
for the year under audit for deferred tax.

2.09. Provision for doubtful losses

Provision for future losses is an estimate of the losses that may be sustained in our investment
portfolio. The provision is based on Bangladesh Bank guidelines. Our methodology for measuring the
appropriate level of the provision relies on several key elements, which include both quantitative and
qualitative factor as set forth in the Bangladesh Bank guidelines. FID circular 8 dated August 03, 2002
is the basis for calculating the provision for doubtful losses.

2.10. Impairment of assets

Assets are reviewed for impairment whenever events or changes in circumstance indicate that the
book value of the assets may not be recovered. Accordingly, the company estimates the recoverable
amount of the assets. An impairment loss is recognized in the profit and loss account while the
recoverable amount is less than the carrying amount of the asset group.

2.11. Risk and Uncertainly for use of Estimates (Provisions)

The preparation of financial statements in conformity with Bangladesh Accounting Standards requires
Management to make estimates and assumptions that affect the reported amounts of revenues and
expenses, assets and liabilities, and disclosure requirements for contingent assets and liabilities
during and the date of the financial statements. Due to inherent uncertainly involved in making
estimates, actual result reported could differ from those estimates;

In accordance with the guidelines as prescribed by BAS 37: Provisions, Contingent Liabilities and
Contingent Assets, provisions are recognized in the following situations;

When the company has an obligation as a result of past events;


When it is provable that an outflow of resources embodying economic benefits will be required to
settle the obligation; and
Reliable estimate can be made of the amount of the obligation.
2.12. Cash flow statement
Cash flow statement is prepared in accordance with IAS - 7 ''Cash Flow Statement '' and Bangladesh
Bank DFIM Circular No - 11 Dated December 23, 2009 under the direct method for the period ,
classified by operating,investing and financing activities in cash and cash equivalents during thr
financial year .

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Rahman Mostafa Alam & Co.
Chartered Accountants

2.13. Proposed Dividend


Dividend proposed by the board of Directors for the year is recognized and accounted for after
approval by the shareholders at the AGM .
2.14. Events after the balance sheet date

Events after the balance sheet date are those events that occur between the balance sheet and the
date when the financial statements are authorized for issue .All material events occurring after the
balance sheet date have been considered in these financial statements .

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Rahman Mostafa Alam & Co.
Chartered Accountants

Amount In Taka
31.12.2009 31.12.2008
3 Cash Balance
Cash In hand 3.1 79,249 32,507
Balances with Bangladesh Bank 3.2 14,076,827 13,974,296
14,156,076 14,006,803

3.1 Cash In hand


Local currency 79,249 32507
Foreign currency - -
79,249 32,507

3.2 Balances with Bangladesh Bank


Local currency 14,076,827 13,974,296
Foreign currency - -
14,076,827 13,974,296

Cash Reserve Requirement (CRR) and Statutory Liquidity Requirement (SLR) :


Statutory Liquidity Ratio (SLR) have been calculated and maintained On the Basis of total time and demand liabilities and in
accordance with the Bangladesh Bank's FID Circular No. 02 dated November 10,2004.The Statutory Liquidity Requirement 5%
includes 2.5% cash Reserve Requirement (CRR ) Calculated on the company's total time and demand liabilities and maintained a
fortnight average basis in the current account is maintaining with the Bangladesh Bank and rest amount has to be maintained in the
form of cash at commercial bank account and Fixed Deposit Account.

3.3 Cash Reserve Requirement ( CRR) 2.5% of average Demand and Time Liabilities

Required Reserve 11,947,000 6,533,000


Actual Reserve held 13,931,000 23,796,000
Surplus/ (deficit) 1,984,000 17,263,000

3.4 Statutory Liquidity Ratio ( SLR) 5% of average Demand and Time Liabilities:

Required Reserve 30,706,000 26,546,000


Actual Reserve held 291,081,000 221,032,000
Surplus/ (deficit) 260,375,000 194,486,000

Total required reserve 42,653,000 33,079,000


Total actual reserve held 305,012,000 244,828,000
Total Surplus/(deficit) 262,359,000 211,749,000

4 Balance with other Bank and Financial Institutions


Inside Bangladesh 4.1 327,942,040 236,694,454
Outside Bangladesh - -
327,942,040 236,694,454

4.1 Inside Bangladesh


Fixed Deposits 4.1.1 311,475,000 225,000,000
Balance with other Accounts 4.1.2 16,467,040 11,694,454
327,942,040 236,694,454

4.1.1 Fixed Deposits


EXIM Bank Ltd. - 25,000,000
Prime Bank Ltd. 100,000,000 100,000,000
Prime Bank Ltd. 100,000,000 -
Eastern Bank Ltd. 111,475,000 100,000,000
311,475,000 225,000,000
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Rahman Mostafa Alam & Co.
Chartered Accountants

Amount In Taka
31.12.2009 31.12.2008

4.1.2 Balance with other Accounts


Al-Arafa Islami Bank Ltd 151,718 1,667,138
Bank Al Falah Ltd. 25,075 -
Bank Asia Ltd. 8,329 12,324
BRAC Bank Ltd. 101,430 221,174
Dhaka Bank Ltd. 57,793 60,183
Dutch Bangla Bank Ltd. 5,170,884 2,970,507
EXIM Bank Ltd CD A/C 4,380 5,990
EXIM Bank Ltd. Gulsan Br. 44,049 -
EXIM Bank Ltd STD A/C 1,271,287 1,504,451
ICB Islamic Bank Ltd. 2,827,420 2,828,420
ICB Islamic Bank STD A/C . 560,049 -
Janata Bank Ltd (Local Office ). 155,136 37,696
Janata Bank Ltd STD A/C 24,523 23,884
Mutual Trust Bank Ltd. 83,062 -
One Bank Ltd 24,380 47,125
Prime Bank Ltd. 18,305 19,455
Prime Bank Ltd.STD A/C 3,005,902 -
Shahjalal Islami Bank Ltd.SND A/C 2,271,597 1,421,559
Shahjalal Islami Bank Ltd.CD A/C 17,714 144,852
Shahjalal Islami Bank Ltd. 20,279 30,633
Shahjalal Islami Bank Ltd.(Motijheel ) 246,185 242,748
Social Islami Bank Ltd.SND A/C 34,586 33,930
Social Investment Bank Ltd.CD A/C 18,475 66,357
Southeast Bank Ltd.STD A/C 85,031 82,800
Standard Bank Ltd. 55,905 -
The City Bank Ltd. 4,619 79,752
The Trust Bank Ltd. 156,346 193,476
The Trust Bank Ltd.Milinium Br. 22,580 -
16,467,040 11,694,454

5 Money at call and short notice


Banking Company - -
Non-banking financial institutions - -
- -

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Rahman Mostafa Alam & Co.
Chartered Accountants

Amount In Taka
31.12.2009 31.12.2008

6 Investments
Government - -
Other Investments 6.1 611,051,914 161,042,648
611,051,914 161,042,648
6.1 Other Investments
This represents the investment in shares of difference companies and instituitions. Details are as follows:

No. Of
Particulars Cost price Market Price Lowest Price
Shares
AB Bank Ltd. 39,203 40,910,291 46,122,330 40,910,291
Aftab Auto Mobile Ltd 990 1,679,525 2,028,263 1,679,525
Shahjalal Islami Bank Ltd. 16,333 5,376,007 6,247,373 5,376,007
Social Islami Bank Ltd. 12,533 3,363,607 3,860,164 3,363,607
Premier Bank Ltd. 99,553 32,323,864 32,816,388 32,323,864
United Leaseing Company Ltd 2,060 3,146,011 3,125,020 3,125,020
Beximco Ltd 665,000 171,340,450 185,684,500 171,340,450
One Bank Ltd. 17 5,533 7,786 5,533
IFIC Ltd 450 383,423 414,112 383,423
Standard Bank Ltd. 31,886 8,347,117 10,594,124 8,347,117
United Commercial Bank Ltd 120 414,664 382,800 382,800
First Security Bank Ltd 32,850 7,081,803 7,185,938 7,081,803
Beximco Pharma 431,997 62,829,584 61,628,633 61,628,633
National Bank Ltd. 10,000 4,981,600 6,462,500 4,981,600
Summit Port Ltd 16,200 27,864,292 25,771,900 25,771,900
Keya Cosmatics 66,000 5,697,780 5,326,200 5,326,200
Summit Power Ltd 5,800 7,236,080 7,023,800 7,023,800
Uttara Bank Ltd 7,000 10,179,680 10,151,750 10,151,750
Beximco Textile 224,200 19,247,570 18,249,880 18,249,880
BSRM Steel Ltd 31,850 26,201,216 27,534,775 26,201,216
Grameen Phone Ltd. 21,400 3,773,034 4,012,500 3,773,034
Titas Gas 10,200 7,405,812 7,002,300 7,002,300
Lafarge Surma Cement 16,350 8,632,964 8,256,750 8,256,750
Beximco Synthetic 2,680 1,307,518 999,640 999,640
Mutual Trust Bank Ltd 34,302 10,223,025 14,123,849 10,223,025
Ncc Bank Ltd 5,000 1,833,000 2,915,000 1,833,000
Power Grid 4,050 3,157,299 2,929,163 2,929,163
Southeast Bank Ltd 3,569 1,074,590 1,191,154 1,074,590
Trust Bank Ltd 30,350 11,229,197 13,171,900 11,229,197
Grameen Phone Ltd.(Placement) 725,700 53,701,800 53,701,800 53,701,800
CDBL 1 1,000,000 1,000,000 1,000,000
People's Investment Ltd 51,000 5,100,000 5,100,000 5,100,000
Mercantile Securities Ltd. 300,000 30,000,000 30,000,000 30,000,000
ICB Islamic Bank Ltd. 2,750 275,000 275,000 275,000
Malek Spinning Mills Ltd.(Placement) 1,600,000 40,000,000 40,000,000 40,000,000
Total 4,501,394 617,323,336 645,297,292 611,051,914

6.2 Maturity grouping of investments


Demand - -
Up to one month 24,442,077 23,082,779
Over one month but not more than three months 30,552,596 11,541,390
Over three months but not more than six months - -
Over six months but not more than one year 219,978,689 33,818,956
Over one year but not more than five years 213,868,170 60,390,993
Over five years 122,210,382 32,208,530
611,051,914 161,042,648

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Rahman Mostafa Alam & Co.
Chartered Accountants

Amount In Taka
31.12.2009 31.12.2008

7 Loans And Advances.


Loans 7.1 4,714,390,596 3,041,217,080
Net Investment in Lease Finance 7.2 2,386,794,877 1,696,706,881
Advance for Lease finance 7.3 310,736,938 398,114,196
7,411,922,411 5,136,038,157
7.1 Loans
Inside Bangladesh 4,714,390,596 3,041,217,080
Outside Bangladesh - -
4,714,390,596 3,041,217,080

Break up of the figures are as follows :


Opening Balance 3,041,217,080 1,968,796,030
Add: Disbursed during the period 2,140,370,136 1,518,216,358
5,181,587,216 3,487,012,388
Less: Realized during the period 467,196,620 445,795,308
4,714,390,596 3,041,217,080

These Loans have been disbursed against collateral ,security of term deposit and shares.

7.2 Net Investment in Lease Finance


Inside Bangladesh 2,386,794,877 1,696,706,881
Outside Bangladesh - -
2,386,794,877 1,696,706,881

Break up of the figures are as follows :


Gross lease receivable 2,686,371,580 1,932,687,935
Less: Unearned lease finance income (299,576,703) (235,981,054)
2,386,794,877 1,696,706,881

7.3 Advance for Lease finance


Inside Bangladesh 310,736,938 398,114,196
Outside Bangladesh - -
310,736,938 398,114,196

Break up of the figures are as follows :


Imported Equipment 81,561,634 99,346,797
Local Equipment 229,175,304 298,767,399
310,736,938 398,114,196

7.4 Residual maturity grouping of loans and advances


Repayable on demand 667,073,017 616,324,578
Up to three months 592,953,793 564,964,197
Over three months but less than one year 2,223,576,724 2,259,856,789
Over one year but less than five years 3,187,126,637 1,078,568,013
Above five years 741,192,242 616,324,580
7,411,922,413 5,136,038,157

7.5 Classification of Loans and advances


Unclassified 7.5.1 7,296,316,413 5,020,591,157
Classified 7.5.2 115,606,000 115,447,000
7,411,922,413 5,136,038,157

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Rahman Mostafa Alam & Co.
Chartered Accountants

Amount In Taka
31.12.2009 31.12.2008

7.5.1 Unclassified :
Unclassified Standard (including staff loans) 7,180,710,413 4,954,382,157
Unclassified Special Mention Account 115,606,000 66,209,000
7,296,316,413 5,020,591,157
7.5.2 Classified :
Sub-standard 56,676,000 114,300,000
Doubtful 58,539,000 756,000
Bad/Loss 391,000 391,000
115,606,000 115,447,000

8 Bill purchased & discounted


Inside Bangladesh - -
Outside Bangladesh - -
- -

9 Fixed assets including premises, furniture and fixtures (at cost less accumulated depreciation )

A. Cost
Opening Balance as on 01.01.2009 74,201,531 18,431,734
Add: Addition during the year 15,396,761 55,769,797
89,598,292 74,201,531
Less : Adjustment - -
Closing Balance as on 31.12.2009 89,598,292 74,201,531

B. Accumulated depreciation
Opening Balance 10,256,303 6,707,417
Charged during the period 8,046,669 3,548,886
18,302,972 10,256,303
Less : Adjustment - -
Closing Balance 18,302,972 10,256,303

C. Written down value ( A - B ) 71,295,320 63,945,228

Group wise details of fixed assets have been shown in Annexure - A

10 Other Assets
Lease rental & Interest Receivable 126,171,072 120,650,752
Interest Receivable on FDR 22,908,000 21,810,000
Adv. for Office Rent 1,432,500 2,359,500
Stamp in hand - 1,250
Advance Tax paid 23,716,203 -
Advance Tax (At Source ) 10,210,920 7,840,079
Due from others - 1,099,875
Other prepayment 2,000,000 648,725
Security Deposit 13,000 13,000
186,451,695 154,423,181

11 Borrowings from Other Banks, Financial Institutions and agents


Inside Bangladesh 11.1 3,104,509,077 2,082,042,481
Outside Bangladesh - -
3,104,509,077 2,082,042,481

11.1 Inside Bangladesh


Loan from Bangladesh Bank 937,451,529 878,356,038

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Rahman Mostafa Alam & Co.
Chartered Accountants

Amount In Taka
31.12.2009 31.12.2008
Loan from Other Banks 11.1.1 2,167,057,548 1,203,686,443

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Rahman Mostafa Alam & Co.
Chartered Accountants

Amount In Taka
31.12.2009 31.12.2008
3,104,509,077 2,082,042,481

Break - up is given below :


Opening Balance 2,082,042,481 1,170,969,076
Add: Drawdown during the period 1,694,857,234 1,358,984,373
3,776,899,715 2,529,953,449
Less: Repayment during the year 672,390,638 447,910,968
3,104,509,077 2,082,042,481

11.1.1 Loan from Other Banks


EXIM Bank Ltd. - 5,856,136
EXIM Bank Ltd. 14,434,872 18,279,855
EXIM Bank Ltd. 2,030,031 17,820,270
EXIM Bank Ltd. 38,337,609 46,422,740
EXIM Bank Ltd. 88,583,998 -
EXIM Bank Ltd. 46,953,027 -
EXIM Bank Ltd. 100,000,000 -
Janata Bank Ltd. 8,333,326 61,666,662
Janata Bank Ltd. - 16,666,662
The Trust Bank Ltd. - 26,225,163
The Trust Bank Ltd. 9,680,869 39,130,222
The Trust Bank Ltd. 24,330,184 96,463,890
The Trust Bank Ltd. 81,037,731 -
The Trust Bank Ltd. 100,000,000 -
Shahjalal Islami Bank Ltd. 70,520,282 89,143,000
Shahjalal Islami Bank Ltd. 3,446,859 20,032,675
Shahjalal Islami Bank Ltd. 42,953,365 -
Shahjalal Islami Bank Ltd. 70,558,986 89,143,000
BRAC Bank Ltd. - 7,500,000
BRAC Bank Ltd. - 6,000,000
BRAC Bank Ltd. 15,000,000 30,000,000
Bank Al Falah Ltd. - 25,172,012
Bank Al Falah Ltd. 44,900,000 -
Social Islami Bank Ltd. 60,003,580 118,352,590
Social Islami Bank Ltd. 38,960,620 -
National Bank Ltd. 96,335,889 -
National Bank Ltd. 23,936,959 36,290,764
National Bank Ltd. 100,000,000 -
NCC Bank Ltd. - 28,450,879
The City Bank Ltd. 22,145,816 39,488,769
Pubali Bank Ltd. 30,000,000 45,000,000
Bank Asia Ltd. 12,499,997 39,166,665
Bangladesh Commerce Bank Ltd. 30,000,000 -
Bangladesh Commerce Bank Ltd. 38,131,659 50,000,000
Bangladesh Commerce Bank Ltd. 16,625,000 41,456,169
Prime Bank Ltd. 33,405,240 42,458,320
Prime Bank Ltd. 42,859,535 -
Prime Bank Ltd. 100,000,000 -
Uttara Bank Ltd. 37,500,000 62,500,000
Sonali Bank Ltd 50,000,000 -
Sonali Bank Ltd 50,000,000 -
Standard Bank Ltd 46,402,010 -
Standard Bank Ltd 46,402,010 -
One Bank Ltd 42,726,870 -
Mutual Trust Bank Ltd 48,186,056 -
Mutual Trust Bank Ltd 96,372,112 -
Mutual Trust Bank Ltd 48,186,056 -
Other Financial Institution 295,277,000 105,000,000
18 / 27
Rahman Mostafa Alam & Co.
Chartered Accountants

Amount In Taka
31.12.2009 31.12.2008
2,167,057,548 1,203,686,443

11.2 Classification of loans as per secutiry


Secured 3,104,509,077 2,082,042,481
Un-secured - -
3,104,509,077 2,082,042,481

11.3 Residual maturity grouping of loans payable .


Payable on demand - -
Up to three months - -
Over three months but less than one year 2,956,479,317 1,998,760,782
Over one year but less than five years 148,029,760 83,281,699
Above five years - -
3,104,509,077 2,082,042,481

Fund required for the Company's operations are primarily obtained from various commercial banks. Secured loans are covered
by first equitable mortgage of all present and future immovable properties and by floating charges on movable assets of the
company ranking pari-passu among the lenders.he Company has pari-passu security sharing agreements with the secured lenders
stipulating the procedure in the sharing of the security provided by the Company.

12 Deposits and other accounts:


Term Deposit 12.1 2,882,869,446 2,033,331,788
Deposits Under Schemes 12.2 7,450,920 -
Lease / Loan Advance 12.3 66,153,668 53,328,648
2,956,474,034 2,086,660,436

12.1 Term Deposit


Openinig Balance 2,033,331,788 1,457,381,647
Add: Received during the period 2,027,257,612 1,157,394,355
4,060,589,400 2,614,776,002
Less: Repayment during the period 1,177,719,954 581,444,214
Closing Balance 2,882,869,446 2,033,331,788

Term deposits have taken from institutions/individuals for 1 to 6 years' terms . These deposits are of revolving and substantial part
of deposits usually are renewed for further period, Hence entire term deposit has been considered as non current liability.

12.2 Deposits Under Schemes


Openinig Balance - -
Add: Received during the period 7,450,920 -
7,450,920 -

12.3 Lease / Loan Advance


Openinig Balance 53,328,648 46,265,456
Add: Received during the period 16,387,490 18,279,013
69,716,138 64,544,469
Less: Repayment during the period 3,562,470 11,215,821
Closing Balance 66,153,668 53,328,648

12.4 Maturity grouping of Deposits and other accounts


Payable on demand - -
within one month 661,537 -
Over one month but less than six months 6,615,367 69,555,348
Over six months but less than one year 2,688,993,635 1,460,662,305
Over one year but less than five years 200,488,865 417,332,087
Over five years but less than ten years 59,714,630 139,110,696
Above ten years - -
2,956,474,034 2,086,660,436
19 / 27
Rahman Mostafa Alam & Co.
Chartered Accountants

Amount In Taka
31.12.2009 31.12.2008
The Company takes one to two rental/ installment from the lessees/loanees on singing of lease/loan agreement which are
refundable / adjustable at the expiry of lease term. This advance bears no interest.

13 Other Liabilities
Short Term Loan 13.1 787,096,334 346,438,216
Payable for Audit fee 100,000 100,000
Interest payable on Term Loan - 4,261,781
Interest payable on Term Deposit 80,870,501 51,863,768
Interest Payable on Bank Overdraft - 2,328,527
Staff Incentive - 33,967
Tax payable (TDR) 47,786 34,116
Provision for current tax 260,962,549 180,170,009
Provision for Deffered tax 22,500,000 22,500,000
Provision for loans and Advances 13.2 125,467,000 67,058,481
Interest Suspense Account 13,781,000 10,467,000
S/Cr. A/c. Lessees 16,510,107 15,059,299
S/Cr. A/c. Loanees 19,988,064 21,933,780
S/Cr. A/c. Others 3,933,714 399,454
1,331,257,055 722,648,398

13.1 Short Term Loan


Overdraft from Bank 150,050,104 25,000,000
Call loan received from Banks/Financial Institutions 13.1.1 540,000,000 130,000,000
Short term loan from Banks & Others 97,046,230 191,438,216
787,096,334 346,438,216

13.1.1 Call loan received from Banks & Financial Institutions :


Dhaka Bank Limited 90,000,000 90,000,000
Janata Bank Ltd. 100,000,000 -
Dutch-Bangla Bank Ltd. 150,000,000 10,000,000
Sonali Bank Ltd 150,000,000 -
Trust Bank Ltd. 50,000,000 30,000,000
540,000,000 130,000,000

13.2 Provision for loans and Advances


Lease Finance 37,448,000 25,364,223
Loan Finance 88,019,000 41,694,258
125,467,000 67,058,481
Break up of provision is as under;
Openinig Balance 67,058,481 37,331,000
Provision for the year 13.2.1 58,408,519 29,727,481
125,467,000 67,058,481

13.2.1 Provision for the year


Lease Finance 12,083,777 10,200,777
Loan Finance 46,324,742 19,526,704
58,408,519 29,727,481

20 / 27
Rahman Mostafa Alam & Co.
Chartered Accountants

Amount In Taka
31.12.2009 31.12.2008

14 Share Capital
Authorized Capital:
10,000,000 ordinary shares of Tk. 100/= each 1,000,000,000 1,000,000,000

Issued, Subscribed & fully Paid up Capital:


7,206,732 ordinary shares of Tk. 100/= each were Issued, Subscribed & fully paid up at the
end of December, 2009. 720,673,200 600,561,000

The composition (%) of Shareholdings at December 31 is as follows:


(i) Sponsors 55.08% 55.08%
(ii) Financial Institutions and Companies - -
(iii) General Public 44.92% 44.92%
100.00% 100.00%

A range distribution of the above shares are given below as required by regulation 37 of the listing regulation of Dhaka Stock
Exchange Ltd.

Percentage (%) of
Share Range Nos. of Shareholders Nos. of Shares
total holdings
Less than 500 3,901 421,511 5.85
501 to 5,000 419 649,755 9.02
5,001 to 10,000 27 188,204 2.61
10,001 to 20,000 23 327,092 4.54
20, 001 to 30,000 13 315,894 4.38
30,001 to 40,000 8 272,707 3.78
40,001 to 50,000 9 407,271 5.65
50,001 to 100,000 10 656,454 9.11
100,001 to above 25 3,967,844 55.06
Total 4,435 7,206,732 100.00

15 Statutory Reserve
Opening Balance 114,289,836 77,141,411
Add: Transfer from Profit & Loss Account 71,156,027 37,148,425
Closing Balance 185,445,863 114,289,836

This has been Kept according to section 6 ( 1 ) of Financial Institution Regulation 1994 and shall be maintained until it reaches in
equal to paid up capital .

16 Surplus In Profit & Loss Account


Opening Balance 159,948,320 11,354,620
Add: Profit during the year - 458,572,674 320,214,284
Retained Earnings 618,520,994 331,568,904
Less : Statutory Reserve 71,156,027 37,148,425
547,364,967 294,420,479
Less : Issue of Bonus Share 120,112,200 -
427,252,767 294,420,479
Less : Provision for Income Tax 102,792,540 134,472,159
Surplus In Profit & Loss Account 324,460,227 159,948,320

17 Income from Loans & Advances


Interest on Staff Loan 55,845 43,339
Interest on Loan 383,757,683 269,659,534
Interest on Home Loan 9,343,941 1,652,124
Interest on Loan against Share 197,824,559 134,634,318
Interest on Loan against TDR 1,115,071 359,109
592,097,099 406,348,424

18 Interest paid on deposits and borrowings :

21 / 27
Rahman Mostafa Alam & Co.
Chartered Accountants

Amount In Taka
31.12.2009 31.12.2008
Interest on Call Loan 22,917,542 21,591,209

22 / 27
Rahman Mostafa Alam & Co.
Chartered Accountants

Amount In Taka
31.12.2009 31.12.2008
Interest on Term Loan 161,570,048 109,255,751
Interest on Term Deposit 186,205,469 124,351,118
Interest on Overdraft 14,885,141 6,246,785
Interest on Short Term Loan 26,093,489 19,085,336
Total 411,671,689 280,530,199

19 Other Operational Income


Interest on FDR 33,535,379 26,634,158
Interest on Bank A/C. 896,035 688,130
Documentation charge 1,131,773 640,587
Service charge 2,398,601 1,399,087
Late Payment Interest 5,032,099 4,697,415
Income From Dividend 250,000 85,000
Transfer Money 82,400 398,185
Interest on advance for leasse finance 18,514,985 24,844,860
Others 2,753,460 822,510
64,594,732 60,209,932

20 Salary & allowances


Salary 31,849,532 19,382,309
Bonus to Staff 2,181,208 1,733,658
Company's Contribution to Employees Provident Fund 927,115 602,498
Staff Incentive - 210,000
34,957,855 21,928,465

21 Rent, Taxes, Insurances , Electricity Etc.


Office Rent 3,321,000 4,438,200
Tax, Rates 250,155 -
Insurance premium 663,413 546,254
Electricity 812,334 604,456
5,046,902 5,588,910

22 Legal Expenses
Legal fees 803,968 482,479
Stamp & Court Fees 154,835 357,816
958,803 840,295

23 Postage , Stamps , Telecommunication Etc.


Postage 57,716 58,589
Telephone bill 752,840 844,877
Fax & Internet 110,377 -
920,933 903,466

24 Stationery , Printing , Advertisement Etc.


stationery & Printing 2,891,523 1,573,532
Advertisement 3,382,326 6,258,731
Computer expenses 212,186 41,430
6,486,035 7,873,693

25 Chief Executive's Salary and Fees


Salary 3,402,500 3,192,500
Other allowances 300,000 250,000
3,702,500 3,442,500

26 Depreciation and Repair of Fixed Assets


Depreciation of Fixed Assets 8,046,669 3,548,886
Furniture Repair & Maintenance 311,233 -
Generator Repair & Maintenance 12,178 -
Motor car Maintenance 1,075,976 1,115,070
9,446,056 4,663,956

23 / 27
Rahman Mostafa Alam & Co.
Chartered Accountants

Amount In Taka
31.12.2009 31.12.2008

27 Other Expenses
Traveling & Conveyance 475,063 2,226,667
Entertainment 950,509 849,096
Staff welfare 755,338 595,326
House Rent - 420,000
Security Services 490,700 404,303
Meeting Expenses 1,530,360 1,340,916
Professional fee 50,000 -
Fees & Subscription 1,706,692 1,508,421
Office maintenance 851,273 522,293
Miscellaneous 584,883 354,423
Utinsil 10,425 -
Books & periodicals 31,905 37,225
Business Promotion 5,828,255 4,021,701
Fuel ,Oil & Lubricant 1,275,705 1,151,659
Fuel ,Oil & Lubricant (Generator) 153,829 -
Staff training 27,500 67,600
Uniform & Leveris 1,400 32,130
Recovery expenses 35,000 90,000
Bank charges & commission 265,098 275,903
Excise duty 74,560 95,241
Lease rental expenses 510,790 1,403,640
Software Expenses 207,600 150,000
Donation 1,902,528 309,050
Total 17,719,413 15,855,594

28 Provision for taxation


Current Tax 28.1 102,792,540 134,472,159
Deffered Tax 28.2 - -
102,792,540 134,472,159

28.1 Current Tax


Current Tax for the year 126,508,540 11
Current Tax paid in advance 23,716,000 20,104,855
102,792,540 20,104,866

28.2 Deferred Tax - -


- -

24 / 27
Rahman Mostafa Alam & Co.
Chartered Accountants

Amount In Taka
31.12.2009 31.12.2008

29. Earning Per Share:


Amount In Taka
2009 2008
Profit After Tax - PAT 355,781,826 185,742,125
Less. Cumulative Preference Dividend - -
Profit attributable to the ordinary shareholders 355,781,826 185,742,125
Weighted Average number of ordinary shares 7,206,732 6,005,610
Basic Earning Per Share before restatement 49.37 30.93
Adjustment for bonus factor - 1.20
Basic Earning Per Share - restated 49.37 25.77

a) Earning Per share is calculated in accordance with IAS 33 “ Earning Per Share” which has been shown on the face in Profit & Loss account.
b) Basic earning per share has been calculated by dividing the basic earning by the weighted average number of ordinary shares outstanding
during the year. Weighted average number of ordinary shares outstanding during the year was 7,206,732
c) EPS for the year 2008 has been restated for the issue of bonus share.

25 / 27
26 / 27
Rahman Mostafa Alam & Co.
Chartered Accountants

Annexure - A

PEOPLE'S LEASING AND FINANCIAL SERVICES LTD.

Schedule of Fixed Assets

As at December 31, 2009

COST DEPRECIATION
WDV as on
Particulars Balance Addition Balance Rate Balance Charged Balance
31.12.2009
as on during as on as on during as on
01.01.2009 the year 31.12.2009 01.01.2009 the year 31.12.2009

Company Premises 33,265,482 - 33,265,482 10% - 3,326,548 3,326,548 29,938,934

Motor Car & Vehicle 10,880,404 4,138,000 15,018,404 20% 4,289,081 2,145,865 6,434,945 8,583,459

Computer 3,469,085 972,540 4,441,625 20% 1,629,823 562,360 2,192,183 2,249,442

Telephone System 1,330,841 47,974 1,378,815 10% 311,881 106,693 418,574 960,241

Air Cooler 2,945,900 131,500 3,077,400 5% 727,253 117,507 844,760 2,232,640

Refrigerator - 265,500 265,500 10% - 26,550 26,550 238,950

Generator - 2,033,200 2,033,200 10% - 203,320 203,320 1,829,880

Office Equipment 1,643,848 378,376 2,022,224 20% 584,335 287,578 871,913 1,150,311

Furniture & Fixtures 20,643,105 7,429,671 28,072,776 5% 2,698,808 1,268,698 3,967,506 24,105,270

Crockeries 22,866 - 22,866 20% 15,123 1,549 16,672 6,194

Total 74,201,531 15,396,761 89,598,292 10,256,303 8,046,669 18,302,972 71,295,320

27 / 27

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