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Rahman Mostafa Alam & Co.
Charter ed Accountants
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
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rsanman wtostata Aram & co.
Chartered Accountants
Assets:
Cash in hand 79,249 · · 79,249
Balances with Bangladesh bank
and its agents
14,076,827 · · · · 14,076,8 27
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6 / 27 fJJ
Rahman Mostafa Alam & Co.
Chartered Accountants
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
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.
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.
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
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.
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
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.
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.
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.
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.
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;
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Rahman Mostafa Alam & Co.
Chartered Accountants
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
3.3 Cash Reserve Requirement ( CRR) 2.5% of average Demand and Time Liabilities
3.4 Statutory Liquidity Ratio ( SLR) 5% of average Demand and Time Liabilities:
Amount In Taka
31.12.2009 31.12.2008
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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
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Rahman Mostafa Alam & Co.
Chartered Accountants
Amount In Taka
31.12.2009 31.12.2008
These Loans have been disbursed against collateral ,security of term deposit and shares.
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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
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
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
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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
Amount In Taka
31.12.2009 31.12.2008
2,167,057,548 1,203,686,443
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.
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.
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
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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
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 .
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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
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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
22 Legal Expenses
Legal fees 803,968 482,479
Stamp & Court Fees 154,835 357,816
958,803 840,295
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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
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Rahman Mostafa Alam & Co.
Chartered Accountants
Amount In Taka
31.12.2009 31.12.2008
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.
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Rahman Mostafa Alam & Co.
Chartered Accountants
Annexure - A
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
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
Telephone System 1,330,841 47,974 1,378,815 10% 311,881 106,693 418,574 960,241
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
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