Global Islami Bank: Financial Statements - 31 December 2021

Transcription

1. Hoda Vasi Chowdhury & Co Chartered Accountants Independent Auditors' Report To the shareholders of Global Islami Bank Limited Report on the audit of the financial statements Opinion We have audited the firrancial stater.nents of Global Islarni Bank Lirlited (the "Bank"), which comprise the balance sheet as at 3 I Decernber 2021 , and the profit and loss acconnt, stater.nent of changes in eqLrity and cash t'low staternent tbr the year then ended, and notes to the financial staternents, including a summary of signifi cant accounting policies. In our opirtion, the accompanying financial statements of the Bank give a true and fair vielv of the balance slreet as at 3 I Decellber 2021, and of its profit and loss accounts and its cash flows for the year then ended in accordance with lttternational Financial Reporting Standards (lFRSs) as explained in uote 2. Basis for opinion i We conducted our audit in accordance with lnternational Standards on Auditing (lSAs). Our responsibilities under those standards are fufther described in the auditor's responsibilities for the aLrdit of the financial statements sectior-r of our repoft. We are indeperrdent of the Bank in accordance with the International f,thics Standards Board for Accountants' Code of Ethics for Professional Accountants (IESBA Code), requirements of Bangladeslt Sqctu'ities and Exchange Cornmission (BSEC) and Bangladesh Banl<, and we have fulfilled our otlter etltical responsibilities in accordance with the IE,SBA Code and the Institute of Chaftered Accor-rntants of Bangladesh (ICAB) By Laws. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Bmphasis of matter We draw attention to note I zl.7 of the financial statelnents. which describes that the Bank has failed to maintain minirnum capital of 12.5Yo of risk weighted assets as per Basel III guidelines. Our opinion is not modified in respect of this rnatter. Key Audit Matters I(ey audit matters are those matters that, in our professional judgement, were of most significance in oui aLrdit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opir-rion on these matters. 0ur Description of key audit matters response to key audit matters Measurement of provision for Investments and leases The process tbr estimating the provision for We tested the design and operating effectiveness key controls focusing on the following: Investrnents and leases portfolio associated with credit risk is significant and complex. o Credit appraisal, Investrnent disbursement procedures, rronitoring and provisioning For the individual arralysis fbr large exposure, provisions calculation considers the estimates of firture business performance and the market value of process; o coIIateral provided for credit transactions. Identification of loss events, iricluding early rvarning and default warning inclicators; o For the collective analysis of exposure on porlfblio basis, provisiorr calculation and reporling of Reviewed qLrarterly Classification of Jnvestrnent (CL); are I National Office : BTMC Bhaban i6th g 7th Hoor),7-9 Karwan Bazar Commercial Area, Dhaka- 1215, Bangladesh Chattogram Office : Delwar Bhaban (4th Floor), 104 Agrabad Commercial Area, Chattogram-4100, Bangladesh
2. Hoda Vasi Chowdhury & Co manually processecl that deals with volumittous databases, assurnptions and estimates. Our substantive procedures in relatior-r to the provision for Investment portfolio comprised the At 3l December 2021 the Bank repofted total gross tbllowing: Investment of BDT 107,086 million (2020: BDT . Reviewed the adequacy of the general and 92,909 million) and provision for Iuvesttlent of specific provisions in line with related BDT 1,149 million (3l't Decetnber 2020: BDT Bangladesh Bank guidel ines; 1,533 rnillion). Assessed tl-re rnethodologies ol1 which the provisiorr arnounts are based, recalculated tlre provisions and tested the completeness and accuracy of the underlying information; Evaluated the appropriateness and presentation of disclosures against relevant accounting standards and Bangladesh Bank guidelines. Finally, compared the amount of provision requirement as detennined by Bangladesh Bank inspection tear-n to the actual amount of provision rnaintained See note no 7 ar.rd l3 to the financial statet.nents Valuation of treasury bill and government bond ]'he classification and r.neasurernent of T-Bill and Government-Bond require judgrnent and complex We assessed the processes and controls put in place by the Bank to identify and confirm the existence of estirnates. treasury bills and bonds. In the absence of a quoted price in an active market, We obtained an understanding, evaluated the design and tested the operating eff'ectiveness of the key the fair value of T-Bills and T-Bonds is determined using complex valuation techniques which may take into consideration direct or indirect unobservable marhet data and complex pricing models whiclt reqr"rire an elevated level ofjudgment. controls over the treasllry bills and bonds valuation processes, including controls over market data inputs irrto valuatiott models, model governance, and valuation adjustments. We tested a sample of the valuation models and the inputs used in those models, using a variety of techniques, irrclLrding conrparing irrputs ttr available rnarket data. Finally assessed the appropriateness and presentation of disclosures against relevant accounting standards and Bangladesh Barik guidelines. See note no 6 to the financial statements ,#ea
3. Hoda Vasi Chowdhury & Co Risk Our response to the risk of income provision tax and tneasurernl :nt of deferred tax assets _a4gql4qy Calculation of income tax provision required We obtained an understatrding, evaluated the design compliance with the Incorne Tax Ordinance 1984 and tested the operational effectiveuess of the including carefuI consideration of various temporarlr Banl<'s key controls over the recognition and altd permanent diff-erences. Furthermore, upon tinal rneasurerrent of both current tax and deferred tax, settlenrent of pending tax assessments any excess or including the assumptions used in estimating the shoft provision of current tax is also adjusted in the Bank's taxable income. current year. Finally, significant jLrdgrnent is required irr relatiorr to deferred tax assets as their recoverability is dependent on forecasts of future profitability over a nurnber of years. Accordingly, this area has been considered as key audit matter. We reviewed tax position for those years r,vhere incorne tax assessrnent is pending and assess adequacy of tax provision recorded by the Bank. Special focus attention was given to any reversal/adjLrstment of income tax provision fiom prior year. We also assessed the cornpleteness and accuracy of the data used for the estirnations of future taxable irrcolne. The Bank has sufficient taxable profit to recover the deferled tax assets in foreseealrle future. At year end of 202 1 the Bank reported advance inconre tax of Tk 2300:49 Million (2020: Tk 2106.18 Million) arrd corresporrding inconre tax We involved tax specialists to assess hey provision of Tl< 3275.35 Million (2020: 2941.15 assur-r-rptiorrs, corrtrols, recognition and Million). In addition, total deferred tax assets of measllrement of current aud deferred tax. BDT 47.38 Mitlion (2020: BDT 2.27 billion) and deferred tax irtorre/ expense of BDT (3.30) rnillion (2020: deferred tax income BDT 53.792 rnillion). Finally assessed the appropriateness and of disclosures against IAS l2 Incorne Tax including dedLrctiorr of DTA on specific presentation provision fiorn regulatory capital. See notes no 9.3, 13.3, 13.4 ancl39 to the financial s1 teurents lnvestment income recognition Recognition and rneasurernent of investment income involve complex I"f environntent as well as lequile critical estirnates and judgment. Since investrnent Income has been accrued in full on all unclassified investment balances at relevant rates (maximum of 9oZ since I April 2020) considering the entire income fronr investrnents is one of the k"y arnount as recoverable fiorn the client and the performance indicators of the Bank thele is arr Governrnent (waived portion). On test basis we lrave inherent risk of fraud and error in recognitiorr of checked a sample of investment accounts to assess interest ir.rconte. Moreover, as per Bangladesh Bank BRPD circular no. 53 dated 30 December 202i, considering future risk banks rvere allowed to recognize oLrtstanding/ arrear income on investment where deferral facilities were given upon receiving at least l5oh of the total receivable arnount. Accordingly this has corrsideled as l<ey audit rlaner. been whether the Bank has complied with the instlLrction referred herein. However, due to the current unceftainty of the overall economic situation both in Bangladesh and Globally there are inherent risk that the .f udgment applied by Managernent in assessir-rg recoverability of investment incorne rnay be diffelent than the actual situation in future. lf it becarne worse, there is a risk that significant portion of interest accrued dLrring the year ended 31 Decernber'2020 rnay not be ultirnately recoverable. See notes no 20 to the financial statements $6rO44
4. Hoda Vasi Chowdhury & Co Legal and regulatory matters We focr"rsed on this area because the Bank operates in a legal and regr-rlatory environment that is exposed to significant litigation and similar risks arising from disputes and regulatory proceedings. Such lnatters are subject to lnalty r"rnceftainties and the outcorne may be difficult to predict. These uncertainties inherently afl-ect the amount and of potential or"rtflows witl-r respect to the provisions which have been established and other timing contingerrt I iabil ities. Overall, the legal provision represents the Bank's best estirnate for existing legal lratters that have a 'impact probable and estimable on the Bank's flnancial position. We obtained an understanding, evaluated the design and tested the operational effectiveness of the Bank's key controls over the legal provision and contingencies process. We enquired to those charged with govenrance to obtain their view on the status of all significant litigation and regu latory matters. We enquired of the Bank's internal legal counsel fbr all significant litigation and regulatory matters and inspected internal notes and repofts. We assessed the metltodologies on which the provision amour.rts are based, recalcr-rlated the provisions, and tested the cornpleteness and accuracy of the underlying information. We also assessed the Bank's provisions and contingent liabil ities d isclosure. Implementation of IFRS l6 Leases IFRS 16 modifies the accounting tleatment of operating leases at inception, with the recognition of a right of use (ROU) on the leased asset and of a liability tbr the lease payrnents over the Iease colttract terrn. With respect to operating leases of premises used by the Bar-rk, at inception of the lease, the lessor receives a right of using the premises, in exchange clf a lease detrt, r-rsing an iurplicit discor-rnt rate. OLrr key audit matter was focused on all leasing arrangements within the scope of IFRS 16 are identified and appropriately inclLrded ir-r the calculation of the transitional impact and specific assumptions applied to determine the discount rates for lease are inappropriate. In responding to the identified key audit rnatter, completed the following audit plocedures: Assessed the design and implernentation of r,ve hey controls pertaining to the determination of the IFRS 16 Leases irnpact on the financial stater-nents of the Bankl Assessed the appropriateness of the discor-lnt rates applied in deterrnining lease liabilities; Verified the accuracy of the underlying lease data by agreeing to original contract and checked the accuracy of the IFRS l6 calculations through recalculation of the expected IFRS l6 adjustnr:nt; and Assessed whether the disclosures rvitlrin the financial statenteuts are appropriate in light of the lcqrrilerrrents See notes no ol I FRS. 8. l3 to the financial statements ,fr|,^%
5. Hoda Vasi Chowdhury & Co lT systems and controls OLrr audit plocedures have a focus or.r IT systents and controls due to the pervasive nature and complexity of, the IT envilonment, the large volutne of transactions processed in numerous locations daily and the reliance on automated and IT dependent rnanual controls. Our areas of audit focus included Llser access r)ranagerreut, developer access to the productiorr environrnent and changes to the IT environnrent. These are l.ey to ensuring IT dependent and application based controls are operating effectively. We tested the clesign and operating effectiveness of tl-re Bar,l<'s IT access controls over the infolnration systerrs that are critical to finaucial repofting. We tested IT general controls (logical access, changes managernent and aspects of IT operational controls). This included testing tl-rat requests fbr access to systems were appropriately revier,ved and authorized. We tested the Bank's periodic review of access rights and revier,ved requests of changes to systems fbr appropriate approval arrd ar.rthorization. We considered the control environrnent relating to various interfaces, configuration and other application layer controls identified as liey to our audit. Other information Managetlent is tesponsible fortlte other inforrnation. The other information comprises all of the information in the Annual Report other than the flnancial statements and our auditor's repoft thereon. The Annual Report is expected to be rnade available to us after the date of this auditor's report. Otrr opittiott olr the flnancial statements does rrot cover other inforntation and we clo not express any fbrm of assuraltce conclusion thereon. ln conttectiorr with our audit of the firrarrcial staterreuts, olrr responsibility is to read the other infbrrnation identified above lvhen it becoures available and, in doing so, consider whether the other informatiou is rnatelially inconsistent with the financial statements or our knowledge obtained in the audil or otherwise appears to be materially nrisstated. If, based on the work we have perfbrrned on the other infbrmation that we obtained prior to the date of this auditor's repofi, we conclude that there is a material misstatement of this other infbnnation. we are requirecl to repoft that fact. We have rrothing to report in this regard. Responsitrilities of management and those charged and internal controls: with governance for the financial statements Management is responsible forthe preparation and fair presentation of the financial statements of the Bank in accordallce with IFRSs as explained in note 2 and cornply witlr the Banking Company Act. 1991 (as antencled trp to date), tlte Cornpatties Act, 1994 and other applicable Laws and Regulations ancl fbr such internal control to enable the preparation of f-inancial statements that are fr.ee fi-orn material urisstatelnent. whether due to fl'aud or error. The Bangladesh Bank gLridelines require the management as management determittes is necessary to ensure eff'ective internal audit, internal control and lisl< ntanageutent functions of the Bank. Tlre lllallagelrent is also required to make a self-assesstnent ott the effectiveness of anti-fl'aud internal controls ancl report to Bangladesh Bank or.r instances of fraLrd and fbrgeries.
6. Hoda Vasi Chowdhury & Co In preparing the flnancial statements, rnanagement is responsible fbr assessing the Bank's ability to continue as a going coucern, disclosir-rg, as applicable, matters related to going concern and using the going concern basis of accounting unless n-Ianagement either irrtends to liquidate the Bank or to cease operations, or has no lealistic alternative but to do so. Those charged with governance al'e responsible for overseeing the Bank's financial reporlirrg process. Auditor's responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurauce about whether the fluancial statentents as a whole are fi'ee frorr material nrisstatentent, whether due to tl'aLrd or error, and to issLre an auditor's repoft that itrclttdes oLtr clpiliion. Reasonable assuraltce is a high level of assllrance, but is r-rot a guaralttee that an audit condttcted in accordance with lsAs will always detect a material rlisstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they coLrld reasonably be expected to influence the economic decisions of users taken on the basis of these financial statet.nents. As part of an audit iu accordance with ISAs, we exercise professional iudgernent and maintain prof'essional skepticism througlrout the audit. We also: r Identify and assess the risks of material misstatemerrt of the financial statements, whether due to fr"aLrd or error, desigr-r and perform audit procedures responsive to those risks, and obtain audit evidence tltat is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material lt.risstaternent resr-rlting from fraud is higher than for one resulting from error, as fraud rnay involve acollusion. f,-lr!ery, intentional omissions. rnislepleserrtations. or the override of ittternal control. . Obtain an nltderstarrding of internal control relevant to the aLrdit in order to design audit proceclr-rres that are appropriate in the circnrnstances. . Evaluate tlre appropriateuess of accounting policies used and the reasouableness of accouuting estimates and related disclosures rnade by tnanagernent. o Conclude on the appropriateness of manager.nent's use ofthe going concern basis of accounting and, based on the audit evidence obtained. whether a material uncefiainty exists related to events ot'conditions that rnay cast significant doubt on the Bank's ability to continue as a going concern. lf we conclude that a material unceftainty exists, we are required to drar'v attention in our auditor's report to the related disclosures in tl-re financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusior.rs are based on the audit evidence obtained up to the date of our auditor's repofi. However, future events or conditions rnay cause the Banl< to cease to contirrue as a going concenr. o Evaluate the overall presentation, structnre and coutent of the financial statements, including tlre disclosures, and whether the financial statements represent the underlying transactions and events in rranner that achieves fair presentation. . a Obtain sufflcient appropriate audit evidence regarding the financial irrlblrration of the entities or business activities within the Bank to express an opirtion on the tlnancial statements. We are responsible fbr the directior-r, supervision and perfbnlance ol the Banl<'s audit. We rernain solely responsible for our audit opinion. We cornmunicate with those chargecl with governance, among other matters, the planned scope and tirning of the audit and significant audit findings, inclLrding any significant deficiencies in internal control that we identify cluring our audit. Jlrrl-
7. Hoda Vasi Chowdhury & Co We also provide those charged r,vith governance with a statement that we have complied with relevant ethical requirements regarc\ing independence, and to communicate with them a\\ re\atronsh\ps and othet matters t\rat lutay reasonably be thought to bear on oLrr independence, and where applicable, related safeguards. From the lllatters cortrrnunicated with those charged with govenrance, rve detemirre those r.natters that were of most significance in the audit of the financial staternents of the current period and at'e therefore the key audit rratters. We describe these ntatters in our auditor's report unless Iaw or regr-rlation precltrdes public disclosure about the matter or when, irr extremely rare circuutstances, we detennitte that a rnatter shotrld ltot be comrnunicated in our repofi because the adverse consequences of doing so rvould reasonably be expected to outweigh the public interest benefits of such commltnication. Report on other legal and regulatory requirements In accordance with the Companies Act, 1994, the Banking Companies Act, i 991, and the rules and regr-rlatiotts issued by Bangladesh Bank we also repoft that: i. We have obtained all the infonnation and explanatior-rs which to the best of our knowledge and belief were rlecessary fbr the pr-rrposes of our audit and made due verit-ication thereof- ii. to the extent notecl huring the course of our aLrdit work perfbrrnecl on the basis statecl under the Auditor's Responsibility section in forming the above opinion on the financial statements and considering the reports of the Management to Bangladesh Banl< on anti-fraud internal controls and instances of fi'aud and forgeries as stated under the Managernent's Responsibility fbr the financial statemests and interrral control: (a) internal audit. internal control and risk lranager.ner]t arrangements of the Barrk as disclosed in the financial statements appeared to be materially adequate; (b) nothing has colne to our attention regarding nraterial instances of forgery or it'regularity or adrninistrative error and exception or anything detrimental conrnritted by erlployees of the Bank. iii. in our opiniou, proper books of account as required by law have been kept by the Bank so far as it appeared fl'om our exatnination of those books; iv. the lecords and statemer-rts sr-rbmitted by the branches have been properly rnaintained in the frnancial statements; v. vi. the balance sheet and profit and loss accourrt together with the annexed notes dealt with by the report are in agreement with the books of account and returns; the expenditr-rres ir.rcnrred ar-rd payments made were fbr the purpose of the Bank's business fbr the year; vii. the flnancial statements have been drawn up in conformity with prevailing rules, regulations and accounting star-rdards as well as related guidance issr-red by Bangladesh Bank; Jo/^'{h
8. Hoda Vasi Chowdhury & Co viii. the records and statements sublnitted by the branches have been properly maintained in the finarrcial statements; ix. the information and explanations required by us have been received and found satisfactory; and x. we have reviewed over 800% of the risk weighted assets of the Bank and spent over 3,3 80 person hours. For and on behalfof Hoda Vasi Chowdhury & Co Chartered Accountants Dhaka, Bangladesh Date: 2? APR 20n o ,dl/*tltrru,*t Showkat Hossain, FCA Senior Partner Enrolment number: 0137 DVC: Lzo 4 21 o t9:t AS ti q {e1
9. Hoda Vasi Chowdhury & Co Global Islami Bank Limited Balance Sheet As at 31 December 2021 Particulars Note(s Amount in'faka 3l Decernber 2021 | lJl Deccmbcr 2020 PROPIIRTY AND ASSB'TS Cash in hand Cash in hand (including lbrcign currcncy) Balance with Balgladesh Bank & it's agent bank(s) ( including foreign currency) 1,094,962,589 135,621,228 5,t12,67 6,296 6,207,638,885_ Birlancc rvith other bank and linancial institutions 1 _ I ,081 ,302,7 42 17,922,923,970 in Bangladesh 165,835,732 Outside lSangladesh 426,689,134 80,97r,566 592,524,866 174,J80,61{l Placement with bank and other financial institutions 93,409,07 4 3,293,177,219 3,011,961,805 Govommcnt '7.303.211.054 7 Others 1,507,75 8,43 Investments in shares & se-curitics (Annexure-B) 1 _7,570,U1,If_ 8,810,975,,1t14 Investmenls - Gencral investment etc Bills purch*rd and discounted l 05,782,68 1,42 ,300,613,167 270.200.3 88 87,4 1 2.938.1 96 r 1,304,291 ,889 5,496.232.241 107,086,973,310 92.909,1',70,,t13 Firctl asscts inclutling prcntises 8 2,3i1,9'14,072 2,075,509,392 Other assets 9 4,396,715,871 3,123,04t,954 Defcrrcd tax assct Non-banking assets 13.5 47,385,200 14,313,361 10 Total assets :-l]&guJ!4Jg__J2u!11]lJ2q.. t,iabilities and Capital Liabilities Placoment from banl< and other financial institutions ll Dcposits and othcr accounts t2 219,871,601 Nir-rdaraba Savings Deposits 6,506.906,127 Mudaraba'l'r:nn Dcposits l05,2ti2_,00ti.9 r4 Other Nludaraba Doposits 6i-tq?t) - ) 451 I?S 751 Al-Wadiah Currcnt Deposit & Otlier Accounts Ilills 1,t82,375,182 Payable 556.812.2?-4 I17,80s,162,228 Othcr Lia hilities I3 l'otal Liabilities 7,024,214,312 _ 125,019,548,145 +oz.,.vrzirl eIt.027.050.7t.1 :.r, | ,.ZiS j l,6lr.l.()i(,.f]7-1 | :{EfU.:l I06,7;19,.r89,685 6,070,251,006 11,1,202,115,873_ CapitaVShareholders' Equit-v Paid-up capira) 14.2 Statutory reserve 1_5 Other reserve 16 Il.ctaured oarnings l'1 Total Sha rcholdcrs' 0quit5 Tolri Liabilities & Shrrcholdcrs' Equity 5, 1 ,54,1 87,500 4,908, ?sanoo t6,183,345 I,130, vzz 828 1,6 l I 990,385.91 7 7,760,756,762 660, JlulrJ 6,699, 999,217 ::_!2,srgJ.q190l :]2{|,2t)-?J1}Lr!_
10. Hoda Vasi Chowdhury & Co Global Islami Bank Limited Balance Sheet As at 31 December 2021 Particulars Note(s Amount in Taka 3l December 2021 | 13l December 2020 OFF-BALANCE SHEET EXPOSURES Contingent Iiabilities 18 & endorsements Acceptances 18. 1 9t,803,562 '108,220,012 Letters of guarantee 18.2 4,198,660,748 4,098,928,456 Irrevocable letters ol credit (including back to back bill) Bills for collection 18.3 886,3 75,955 363,565"245 Other contingent liabil ities Total __5;156!9U!_ ____lJl9J1J,ZtL Other commitments Documentary credits, shon telm and trade related transactions Forward assets purchased and forward deposits placed Undrawn note issuance, revolving and underwriting facilities Undrarvn formal standby facilities,credit lines and other l commitments 'Iotal l- Total off-balancc sheet items including contingent liabilities 5,176,840,264 Nct Asset Value per Share [previous year's figure restatedl 40(a) 15.06 5,1 70,713,713 13.00 Accompanying notes form an integral part ofthese financial statemcnts. Wffi S igned in terms of our report of even date Fnr and on behalfof I{oda Vasi Chorvdhury & Co. Chartercd Accountants Dhaka, Bangladesh Date: 27 APR 20U Showkat flossain, FCA Senior Partner Enrollment No. 0137 ov c : 22o tt 27 a LXl A$ I 10 5 +f81
11. Hoda Vasi Chowdhury & Co Global Islami Bank Limited Profit and Loss Account For the year ended 31 December 202I Amount in Taka Note(s Particulars 31 December 2021 I I 3l December 2020 Operating income Investment income 20 )1 Less: Profit paid on deposits Net Investment Income 13,029,982,174 12,048,740.165 8,0 I 3,886,8 14 9,089,482,06 5,016,095,J61 2,959,258,104 1 Income from investment in shares/securities Commission, exchange and brokerage 22 2t0,081,02s 1-) 59,s92,111 69,06s.263 Other operating Income 24 33.406. 1 40 63.668.406 1 403.085.282 Total 0perating Income 998,683,928 t.131.417 .597 5,41 9,180,642 4,090,675,70 t,055,947 I 0perating expenses Salaries and allowances 25 1,4 I 5,955,082 Rent. taxcs. insurances. electricrty etc. 26 193,435,465 ,4t5 t69,235,276 Legal expenses 27 11,989,243 Postage. starnps. telecommunicatron etc. 28 44,426,040 29,912,876 Stationery, printings, advertisements etc. 29 4t,515,676 34, I I 8,320 Chiefexecutive's salary & fees 30 1 5,590,806 13,742,003 Directors' fees & expenses J1 Shariah supervisory committee's fees .^i- & expenses 32 .Audltors lees 33 Charges on investment losses 34 Depreciation & repairs ofbank's 8,352,956 255,110 402,500 546,690,020 36 46,214,231 Other expenses 37 20 Profit / (Loss) before Provision Provision on classified investment 409.759,806 397.612.362 2, I 89,909,713 2,683,106,318 1,900,765,999 Provision on off-Balance Sheet Special general provision-COVID- 8 16,981 (r,3s9,100) I9 Provisions on Inveslment in Securities 1 Other Provisions-Other Asset 'l.otal provision 481 ,953,012 2,736,074,324 243,280,776 (26,386,911) Provision on unclassified investment ,20s,101 1,955,000 35 Total Operating Expcnses 5 90,000 1 Zakat expenses assets t,525,132 (17 6,386,07'7) I s8,8 13,90 I (26,454,039) 140.8t2,760 9,953,800 20,773.188 38 Total Profit / (Loss) before tax 257,078,731 96,786,s1s 2,426,027,584 1,803,979,,143 Provision for income tax Deferred tax Current tax 39 39(a) (33,07 r,840) t. 139,7 10.520 l.106.638.680 Net Profit/(Loss) after Tax _____1,I2iqq2q 51 '7q) 1'7'7 720.900.283 774,693,060 1.029.286.383
12. Hoda Vasi Chowdhury & Co Global Islami Bank Limited Profit and Loss Account For the year ended 31 December 2021 Amount in Taka Note(s Particulars Profit available lbr appropriation 31 December 2021 I I 31 Decemher 2fi20 Less: appropriation Statutory reserve l5 485,205,5-17 360,795,889 General reserve Dividend-cash 245,437,500 Start-up fund 1 3, 1 93,889 Dividend-stock 10,292,864 245,437,500 Retained surplus 820,e8e.;e8 17 Earnings per share (EPS) [previous year's figure restated] 167,322,630 ____l,11LlEEpA4_ _____.to222!5J8t_ 40 2.56 2.00 Aobompanying notes form an integral part ofthese financial statements. Wffi Signed in terms of our repofi of even clate For and on behalfof Hoda Vasi Chowdhury & Co. Chartered Accountants Dhaka, Banglaclesh Date: 2 ?"A?R 2 022 Showkat Hossain, FCA Senior Partner Enrollment No. 0137 Dv c t a\2? OI 3? ll t2 Ag tslr 589
13. Hoda Vasi Chowdhury & Co Global Islami Bank Limited Cash Flow Statement For the year ended 31 December 2021 MJ I lt Jl D"...b.. ,0rl I t x D.*-b.' ,0101 Particulars Cash flows from operating activities Investment income receipt in cash Profit pard on deposits 11 ,87 4,t07 ,246 (6,936,897,760) Income from investment Dividends receipts 1 2t1,477,300 Fees and oomrnission receipts in cash off investments Cash payrnents to employees Cash payments to suppliers 1,890,961,718 (9,39 1,30 r,2 l 0) 1,071 ,207,s 10 1.033.475 2,4'.75,0s0 s9,s92,117 69,065,263 Recovery lorm written ( 1,43 1,54s,888) (1,069,689.4 (41 ,s 1 s ,67 6) income tax paid (34, 4l I 42 (609.t 35 .671 1,278,619,509 (2,603,887) 3,608,6 1 8,565 (14,117 ,802,867) (10,543,s72,82r) 43 ( A) Net cash from/used in operating activities Cash flows from investing activities Procecds lrom sale ol securities 120,063,944 2.359.261.515 9,3s4,688,176 17 1 ,853,720 l, 1 62,s03,s78) 9,978.983.490 349,493,839 t.245.036.243 (4,842,579,283\ 6,114,102,222 (2,592,808,483) 7,422,721"731 dor 684,009 Payment lor purchase olsecuritles 8) 63,668,406 1t) 2,219,770,800 Operating profit before changes in operating assets: Changing in operating assets and liabilities Increase/T)ecrease of ner tradihg IncreaselDecrease of investment iurd advances to customers Increase/Decrease of other assets (item wise) lncrease/Decrease of deposits from other banks/borrowings IncreaselDecrease of deposits received from customers Increase,Decrease of trading I iability increase/Dec?dase of other liability on account of customers Increase,Decrease of other liabilities 32,083,830 (720,913 .1 1 8,320) (714,513,8r3) (897,590,1 33) Receipts fiom other operating activities (item-wise) Payments fbr other operating activities (item-wise) 11 (1,238,242,0s1) 5?q I 8,975,000 Share money subscription Purchase ofproperty, plant and equiprnent Proceeds lrom sale ofproperty, plant and equipn-rent Purchusc/Sale oI subsidiaries (841,943.130) (l ,727 .845,450) 1,822,310 B) Net cash used in investing activities (2,077,679,163) (1,708,167 ,921) Cash l'lows from financing activities Dividend paid (24s,43'1,s00) Receipts from issue of debt instruments Payment lor redemption of debt instrurnents Receipts lrorn issuing ordenary share/rights share C) Net cash from financing activitics (215,437,500) D) Net increase / (decrease) in cash and cash (A+ B + C) E) (4,91s,92s,44s) 5,711,253,810 Add: Eflbcts ofexchange rate changes on cash and cash equivalents F) Add: Cash and cash equivalents at beginning ofthe year G) Cash and cash equivalents at end of the year (D+E+F) 13 r 45 5,009,266,41 5 10,093,340,970 9.295.012 15,009,266,415
14. Hoda Vasi Chowdhury & Co Global Islami Bank Limited Cash Flow Statement For the year ended 3l December 2021 Particulars Amount in Taka Note(s) JI December 2021 | | Jl December 2020 Cash and cash equivalents at end ofthe year Cash in hand (including foreign currencies) Money at call and short notice 3.1 1,094,962,s8_9 )_z s,112,676,296 592,s24,866 3.293.17'7.2t9 11,087,302,7;2 10,093,340,970 15,009,266,415 735,621,228 Prizebond Balance with Bangladesh Bank and its agent bank (s) (including Balance with other bank and financial institutions Placement with bank and other financial institutions Accompanying notes form an integral part ofthese financial statements. 174,380,640 3.01 1.961.805
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17. Hoda Vasi Chowdhury & Co GIobal Islami Bank t,td Notes to the financial statements As at and for the year ended 31 Dccember 2021 1.0 The Bank and its activities 1.1 Introduction Global Islami Bank Limited (hereinafter called 'the Bank' or 'GIB') has been established as a Public Limited Cornpany (Banking Company). The Bank commenced banking operation on 23 October 2013 by obtaining license from Bangladesh Bank on 25 Jlly 2013 under the Bank Companies Act 1991(amended up to 2018). At present the Bank is operating its business through head office having 90 (ninety) branches and 84 (eighty four) sub- branches, 92 (ninety two) Automated Teller Machine (ATM) booths and 2,012 (two thousand and twelve) employees all over Bangladesh. The Bank does not have any Off-shore Banking Unit (OBU) zurd or any subsidiary company. Subsequently, GIB obtained permission vide relerence no. BRPD(P-3) 745(62)12020-11688, dated 31 December 2020 to change the name of the tsank to "Global Islami Bank Limited" from "NRB Global Bank Limited" the Companies Act 1994 as full-fledged Islami Bank, converting from conventional bank, to conduct day to day banking business operations under Islami Shari'ah Principles. The bank commenced its scheduled commercial banking operation under the preview of Islami Shari'ah from 0l .lanuary 2021 by obtaining approval ofBangladesh Bank and other regulators (where applicable). - The registered ollice of the Bank is located at Saiham Tower, House No. 34, Road No. 136, Block No. S. E (C-l), Gulshan Model Town, Gulshan-1, Dhaka-1212, Bangladesh. 1.2 Nature of business The Bank offers all krnds 5f Islamic Shari'ah based commercial Banking services to its customers through its branches, sub- branches, agents lbllowing the provisions of the Bank Companies Act 1991 (amended up to 2018), Bangladesh Bank's Directives and directives ofother regulatory authorities and the principles ofthe Islamic Shari'ah. 1.3 Agent Banking lslamic micro-finance represents micro-finance of the Islamic finance industry. Under Islamic micro-finance, major locus is given mjmprovement of living standard of poor people. The projects are closely monitored so that the members are really benefited. 2.0 Basis of preparation of financial statements 2.1.I Reporting framervork and compliance thereof The Bank being operated in strict compliance with the rules of Islarnic Shari'ah. The financial statements of the Bank have been prepared under the historical cost convention in accordance with International Financial Reporting Standards (lFRSs). As Financial Reporting Standards is yet to be issued by FRC, as per the provisions of FRA, flnancial statements ol the bank, have been prepared in accordance with the International Financial Reporting Standards (IFRS) and International Accounting Standards (lAS) as adopted by'l'he Institute of Chartered Accountants of Bangladesh (ICAB) and in addition to this, the bank also complied with the requirements of the following laws and regulations lrom various Governlnent bodies: Among others, the Bank complied with the requirements of the following circular, rules and regulations: a) The Bank Companies Act, 1991 as amended; b) The Companies Act, 1994; c) IIRPD Circular No. 14 dated 25 06.2003 and "Guidelines for Islamic Banking" issued by Bangladesh Bank tlrrough BRPD Circular No. I 5 dated 09. 1 1.2009; d) Other circulars, rules and regulations issued by Bangladesh Bank from time to time; e) The Securities and Exchange Rules, 1987 as amended; f) The Securities and Exchange Ordinance, 1969 as amended; g) The Securities and Exchange Commission Act, 1993 as amended; h) Income Tax Ordinance, 1984 as arrended; i) Value Added Ta-x and Supplementary Duty Act,2012 as amended; j) Standards issued by AAOIITI k) The Stamp Act-1899 as amended, 1) 1'he Customs Act-1969 as amended; nr) The Money Laundering Prevention Act, 2012 as amended; n) 'Ihe Anti 'ferorism (Amendment) Act, 2009 as amended etc.
18. Hoda Vasi Chowdhury & Co As such the Bank has departed lrom those which are the requirements of IAS and IFRS in order to comply with the rules and regulations ofBangladesh Bank are disclosed below: I. Presentation of financial statemeuts IFRS As per IAS-1 "Presentation of Financial Statements", financial statements shall con-rprise statement of finzrrcial position, statement of profit or loss and other comprehensive income, statement of changes in equity, statement of cash flows, notes to the financial statements comprising summary ofaccounting policies and other explanatory infonnation and retrospective restatement of items in the earlier financial statement, where applicable. Furlhennore, IAS-1 states that, an entity shall present its current and non-cuffent assets and liabilities, as separate classifications in lts statement offinancial position. Bangladesh Bank The financial statements and certain disclosures therein are presented in a prescribed lormat (i.e. balance sheet, profit and loss account, cash flou,s statement, statement of changes in equity, liquidity statement) in accordance with the guidelines of tl-re 'First Schedule ' (section 38) of the Bank Companies Act 1991 as amended and BRPD circular no. 15 dated 09 November, 2009 and other subsequent guidelines of BB. In the prescribed lorrnat ol BB there is no component of other comprehensive income and accordingly the elements of other comprehensrve income and the tax thereon (il any) is recognized directly in the statement of changes in equity. The assets and liabilities are presented in accordance with the prescribed fonnat ofBB and accordingly not classificd as current and non-current classification as required by IAS-1, II Name of the Financial statements IIRS I As per IAS 1, complete set of financial statements consists statement of financial position, statement of profit or loss and other comprehensive income, statement of changes in equity, statement of cash flows and notes, cornprising significant accounting policies and other explanatory information. Bangladesh Bank The forms of financial statements and directives for preparation thereof of the Islamic banking cornpanies in Bangladesh are guidedby BRPD circular no. 15 dated 09 November 2009 Bangladesh Bank. BRPD circular no. 15 states the statement offinancial position as balance sheet and statement ofprofit or loss and other comprehensive income as profit and loss account. III. Other Comprehensive Income IFRS AsperlAS-1 "OtherCornprehensivelncome(OCI)"isacomponentololflnancial statementsorthcelementsofOClare to be included in a single Other Comprehensive Income (OCI). Bangladesh Banl< Bangladesh Bank has issued ternplates lor financial statements which will strictly be iollor.ved by all banks. The templates o1'linancial statements issued by Bangladesh Bank do not include Other Comprehensive Income nor are the elements of Other Comprehensive Income allowed to be included in a single Other Comprehensive Income (OCI) Statement. As such the Bank does not prepare the Other Comprehensive Income statement. Horvever, elements of OCI, if any, are shown iu the staternenl olchanges rn equity. IV. Disclosure of Appropriation of Profit IFRS iFRS do not require appropriation of profit to be shown on the face of the statement of comprehensive income. Bangladesh Bank As per BRPD circular no. 14, dated 25 June 2003 and BRPD 15, dated 09 November 2009, an appropriation ofprofit should be disclosed on the face \'. ofprofit and Loss Account. Investments in shares and securities IFRS As per requirements of IFRS-9 "Financial Instruments", investment in shares and securities are generally classilied eitlier at fair value through profit or loss or at fair value through other comprehensive income and measured initally at its lair value plus transaction costs that are directly attributablc to the acquisition of the financial asset . Horvever in the casc of financial assets classified and measured at lair value through profit or loss, transactions costs are immecliately recr:gnised in profit or loss. Change in the fair value of shares and securities measured at fair value through prolit or loss rs recognised in the statement o1'profit or loss and changes in the farr value olshares and securities rneasured at fair value through other comprehensive income is recognised in the other comprehensive income and are never reclassifled to polit or loss. 18
19. Hoda Vasi Chowdhury & Co Bangladesh Bank AsperBRPDcircularno. l4dated25June2003,investmentsinsharesandsecuritiesareclassifiedunderheldtomaturity (HTM) or held for trading (HFT) "and measured at cost. Transaction costs that are directly attributable to the aoquisition initial fair value except for financial assets classified as HFT where they should be recognised in profit or added to the loss. After initial recognition, HFT govt. securities are measured according to DOS circular no. 05 dated 26 May 2008 and DOS circular no. 05 dated 28 January 2009, where amortization loss is charged to profit and loss account, markto-market loss on revaluation is charged to profit and loss account, but any unrealized gain on such revaluation is recognized in revaluation reserve account. HTM govt. securities are measured at amortized cost and increase/decrease related to amortization is recognized in equity. AsperBRPDcircularno. l4dated25June2003andDOScircularNo.4dated24November20ll,investrnentsinquoted and unquoted shares are revalued at the year-end at market price and at Book Value of last audited balance sheet respectively. As such, provision is made against the diminution in value of investments considering netting off gain /loss. Investment in mutual fund (open-end) is revalued at lower of cost and higher of (market value and 95Yo of NAV) as per l2 March 2015 closed end mutual fund is revalued at lou,er of cost and higher o1' DOS circular no. l0 dated 28 .lune 2015. As such, provision is rnade fbr any loss arising frorn diminution in value of investmcnts (portfolio basis), otherr.vise investrncnts are recognized at costs. instruction of DOS circular no. 03 dated (n-rarket value and 859/o VI of NAV) as per Revaluation gains/losses on Govcrnment securities I-F'RS As per requirement of IFRS 9 "Financial Instrumentsr where securities r.vill fall under the category o1'fair value through profit or loss account and.any change in fair value ol the asset is recognized through profit or loss account. tleld fbL Trading (HFT), any change in the lair value of held for trading assets is recognized through profit and loss account. Securities desiguated as amortized cost are measured at effective interest rate method and investment income is recognized through the profit and loss account. Bangladesh Bank As per IFRS 9 an entity shall recognise an impairment allowance on loans and advances based on expected credrt losses. At each rlp-orting date, an entity shall measure the impairment allowance for loans and advances at an amount equal to the liletime expected credit losses if the credit risk on these loans and advances has increased significantly since initial rccognition. For those loirns and advances for which the credit risk has not increased significantly since initial recognition, an entity shall measure the irnpairment allowance at an amount equal to l2 fironth expected credit losses. \/ll. Provision for investnrents IFRS As per IFRS 9 an entity shall recognise an impairment allowance on loans and advances based on expected credit losses. At each rcporting date, an entity shall measure the impairment allorvance fbr loans and advances at an amount equnl to thc lifetime expected crcdit losses il the credit risk on these loans and advances has increased significirntly srnce inrtial recognition. For those loans and advances fbr lvhrch thc credit risk has r-rot incrcased signilicantly since initial rccognition, an entity shall measure thc impairrnent allowance at an amount equal to 12 month expected credit losses. Bangladesh Banh As per BRPD circular No.14 dated 23 September 2012, BRPD circular No. 19 dared 27 December 2012, BRPD circular No. 05 dated 29 May 2013, BRPD circular No. 16 dated 18 November 2014 and a BRPD Circular No.01 dated 20 February 2018 general provision al 0.250/0 to 5oZ under different categories ofunclassified investments (good/standard investments) has to be maintained rcgardless of objective evidence ol impairment. Also provision for sub-standard. doubtful and bad & loss investmcnts have to be provided at 20o/o,50% and 100% respcctively (exccpt short-rcnn agricultural and micro-credits where 1% for all unclassified investment (irregular & regular) 5?6 fbr sub-standard and doubtful investments and I 00% lbr bad & loss investments) depending on the duration of overdue. YIII. Provision for Off-balance sheet items tI,'RS As per IFRS 9 an entity shall recognise an impairment allowance on investments (loan) based on expected credit losses. A1 cach reporting date, an entity shall mcasure the impainnent allou,ance lor investrnent (loan) at an amount equal to thc lif-ctime expccted credit losscs if the credit risk on these investlnents l.ras increased significantll sincc rnitial recogniLion whether asssssed on an indrvidual or collective basis considering all reasonable informatior.r, includrng that which is forward-looking. For those investlnents (loans) for which the credit risk has not increascd significantlv srnce initial recognition, at each rcporting date, an entity shall measure the impairment allorvance at an amount equal 1o l2 rnonth expected credit losses that may result lrom default events on iuvestrnents that are possible within l2 tnonths aftgr reporting date 19
20. Hoda Vasi Chowdhury & Co Banglardesh Bank As per BRPD circular No. 14 (23 September 2012), BRPD circular No. l9 (27 December 2012). BRpD circular No. 05 (29 May 2013), BRPD circular No. I 6 (18 Novemb er 2014), BRPD Circular No. I 5 (27 Seprember 2017), BRpD Circular No. 0l (20 February 2018), BRPD Circular No. 03 (21 April 2019) and BRPD Circular No. 07 (19 March 2020) a general provision at 0.25%o to 5%o under different categories of unclassified loans (good/standard loans) has to be maintained regardless ofobjective evidence ofimpairment, Also provision for sub-stanilard loans, doubtful loans and bad losses has to be provided at 20ok,50% and 10002 respectively except (a) short-term agricultural and micro-credits where 5% for substandard and doubtful investments and 100% for bad & loss investments and (b) Cottage Micro and Small Credits rvhere 5% for Sub-Standard,20o/o for Doubtful and 100% for Bad & Loss investments depending on the duration of overdue. Again as per BRPD circular no. l0 dated 18 September 2001 and BRPD circular no. 14 dated 23 September 2012, a general provisionatToh is required to be provided for all off-balance sheet exposures except LC issued against Fast Track Electricity Project & Bills for Collection according to BRPD circular letter no. 01 dated 03 January 2018 & BRPD circular no. 07 dated 21 June 2018 respectively. Such provision policies are not specifically in line with those prescribed by IFRS 9 "Financial Instruments". IX. Recognition of investment incomc in suspense IFRS lnvestment to customers (loans and receivables) are generally classifled at alnortized oost as per II.RS 9 "Financral Instmments" and investment income is recognised by using the el'f'ective interest rate method over the term of the investment. Once an investment is impaired, the entity shall apply the eflective intercst rate to the amortiscd cost ol-these investments. Bangladcsh Bank Y As per BRPD circular no. l4 dated 23 September 2012, once an investment is classifled, investment income on such investment are not allowed to be recognised as income, rather the corresponding amount needs to be creditecl to an investment income in suspense account, rvhich is presented as liability in the balance sheet. X. I'inancial instruments - presentation and disclosure ln scveral cases Bangladesh Bank guidelines categorise, recognise, measure and present financial instruments differently fronr those prescribed in IFRS 9. As such full disclosure and presentation requirements of IFRS 7 and IAS 32 cannot be made in the financial statements. XL Financialguarantees IFRS As per IIRS 9, financial guarantees are contracts that require the issuer to make specified payrnents to reimburse the holder for a loss it incurs because a specilied debtor fails to make payment when due in accordance with the original or rnodilied terms of a debt instrument. Financial guarantee liabilities are recognised initially at their lair value plus transaction costs that are directly attribulable to the issue of the financial liabilities. 'l'he financial guaranree Iiability is subsequently tneasured at the higher of the amount of loss allowance for expectecl credit losses as per rrnpairrnent requirement and the amount initially recognised less, income recognised in accorclance with the principlcs o1'IFIiS 15. Financial guarantees are included within other liabilities. Bangladesh Bank As per BRPD 14 dated 25 June 2003 and BRPD 15 dated 09 November 2009, financial guarantees such as letter olcredit. letter olguarantee wrll be treated as off-balance sheet items. XII. Balance with Bangladesh Bank: (Cash Reserve Requirement) IFRS Balturce with Bangladesh Bank that are required to be kept asset as it is not available fbr use in day to day operations as part as per of cash reserve requirement, should be treatec.l as other IAS-7 "statement of Cash F'lows,,. Bangladesh Bank Balance with Bangladesh Bank is treated as cash and cash equivalents. XIII. Cash flow statement IFRS l'he Cash florv statement can be prepared using either the drrect rrethod or the indirect rnethocl. selectcd to present lhese cash florvs in a rranner that is most appropriate for the business or inclustry 'fhe presentation rs Bangladesh Banlt As per BRPD 14 dated 25.ltrne 2003 and BRPD l5 dated 09 November 2009, cash flow,stalement is to be prepareti following a mixture of direct and indirect methods. 20
21. Hoda Vasi Chowdhury & Co XIV. Non-banking asset IFRS No indication of Non-banking asset is found in any IFRS. Bangladesh Bank As per BRPD 14 dated 25 June 2003 and BRPD 15 dated 09 November 2009, there must exist a face item named Nonbanking XV. asset. Presentation of intangible asset IFRS An intangible asset must be identified and recognised, and the disclosure must be given as per IAS-38 "lntangible Assets". Bangladesh Bank There is no regulatiou lor intangible assets in BRPD I 4 dated 25 June 2003 and BRPD I 5 dated 09 November 2009. XVI. Off-balance sheet items IFRS As per IFRS, there is no requirement lor disclosure ofofl'-balance sheet items on the lace ofthe balance sheet. XVII. Bangladesh Bank As per BRPD circular no. 14 dated 25 .lune 2003 and BRPD 15 dated 09 November 2009, olf balance sheer items (e.s I-etter ofcredit, Letter olguarantee etc.) must be disclosed separately on the face ofthe balance shset. Investments net off provision I}-RS lnvcstrnents should be prcsenred net off proviston. Bangladesh Bank As per BRPD 14 dated 25 June 2003 and BRPD 15 dated 09 November 2009, provision on investrnenls are presenter.l separately'as liability and can not be netted offagainst investrnents. KVIII Recovery of written of loans IFRS lAs per IAS I , an entity shall not offset assets and liabilities or income and expenses, unless required or pennitted by any IFRS. Again recovery ofwritten ofloans should be charged to profit & loss account as per IFRS 15. Bangladesh Bank As per BRPD 15 dated 09 November 2009, recoveries of amount previously rvritten ol shoulcl be adjusted rvith the spccilic provision lor investments. XIX. Revenuc As per IFRS 15, revenue should be recognized on accrual basis but due to the unique nature ol lslamic Banks, income lrotn investment under Mudaraba, Musharaka, Bai-Salam, Bai-as-Sarl and U.larah modes is accounted for on realization basis as per AAOIF1 and Bangladesh Bank guidelines. XX. Chargcs on tax on retained carnings, reservc, surplus as per Income tax ortiinance (ITO) 1981 As per section l6(G) of the income tax ordinance 1984, Listed companies should disclose proposed clividend in the balance sheet as "atnong to be distributed as dividend". However there is no provision for this in BRPD 14 dated 25 June 2003 and BRPD 15 dated 09 November 2009 and IFRS also restricts to disclose such presentation in the balance sheet. 2.1.2 Measurement of elements in the financial statements Measurement is the process of determining the monetary amounts at w,hich the elements of the financial statements are to be recognized and canied in the financial statements. The measurement basis adopted by the Bank is historical cost exccpl fbr lzurd, building and few of the financial assets which are stated in accordance w,ith the policies mentioned in the rsspective notes. 2.1.3 tlse of estimates and judgments The preparation of financial statements requires rlanagement to make judgments, estimates and assumptions that alfect the application of accounting policies and the reported amounts ol assets, liabilitics, incorne and expenses, and disclosure rcquirements for contingcnt assels aud Iiabilities during and at the date ofthe financial slatements. Actttal rcsults may differ from these estimatcs. Estimates and underlying assumptiolrs are reviewed on an ongoing basrs. Revisions of accounting estimatcs are rccognized in the penod in r,vhich the estimate is revised and in any luture periods allected . Inlonnation about significant areas of estimatron uncertaint), and critical judgments in applying accounting pblicies rhat have the nrost signilicant eflect on thc amounts recognrzed in the linanclal statements include depreciation, amortiz.ation, impainnent, post enrployment benellts Iiabilities, accruals, taxation 2L an<1 provision.
22. I Hoda Vasi Chowdhury & Co 2.1.4 Comparltive information and rearrangement thereof Comparative figures have been re-arranged wherever considered necessary to ensure better comparability with the current period without causing any impact on the profit and value ofassets and liabilities as reported in the financial statements. 2.1.5 Going concern The Financial Statements have been prepared on a going concern principle is the assumption that an entity will remain in business for the foreseeable future. Conversely, the Bank has neither any intention nor any legal or regulatory cornpulsion to halt operations and liquidate its assets in the near term at what may be very low fire-sale prices. Key linancral parameters (including liquidity, profitability, asset quality, provision sufficiency, capital adequacy and credit rating) ofthe bank continued to demonsfate a healthy trend for a couple of years. The management is not aware of any material uncertainties that may cause to believe that significant doubt upon the bank's ability to continue as a going concem. 2.1.6 Accrual basis of accounting The Bank prepares its financial statements, cxcept lor cash flow information, using the accrual basis of accounting. Since the accrual basis of accounting is used, the Bank recognizes rtems as assets, liabilities, cquity, income (except the items mentioned in note-XII) and expenses (the elements of financial statements) when they satisfy the dslliltions and recognition criteria for those elements in the Framework. 2.1.7 Materiality and aggregation 'lhe Banh presents separately each material class of similar i1ems. The Bank presents separately items of a dissirnilar nature or functioi.r unless tlJey are immaterial. Financial statements result from processing large numbers of transactions or other events that are aggre[ated into classes according to their nature or function. 2.1.B Offsetting Financial asscts and financial liabilities are offset and the net amount repofted in the balance sheet when there is a legal\, enlorceable right to offset the recognized amounts and there is an intention to setlle on a net basis and or realize the asset and or set1le the liability sin-rultaneously. 2. L9 Reportinrg- periott Thc I-inancial Statements corer lrom 0l January 202 I to 3l December 202L 2.1.10 Cash flow statement Cash Flor'v Statement is prepared in accordance with IAS-7 "Statement of Cash Flor.vs" as w,e1l as the guidelines fbr islamic banking issued by Bangladesh Bank through BRPD Circular No 15 dated 09. l1 2009 and BRPD Circular No.14 dated 25.06.2003. The Statement shorvs the structure o1'changes in cash and cash equivalents during the ycar. 2.1.11 Statement of changes in equity Statcment ol Changes in Equity has been prepared in accordance with IAS-l "Pressntzrtion ol Finarrcial Staterlients" as well as the guidelines for islamic banking issued by Bangladesh Bank through BRPD Circular No. l5 dated 09.11.2009 and BRPD Circular No. l4 dated 25.06.2003. 2.1.12 Liquidity s(atement Liquidity Statement has been prepared based on l-he residual/remaining maturity ol assets and liabilities as on 3l December 2020 as per the guidelines tbr islamic banking issued by Bangladesh Bank through BRPD Circular No. 15 dated 09. I 1 .2009 and BRPD Circular No. 14 dated 25.06 2003 as follows: i) ii) iii) iv) v) vi) vii) viii) Balance rvith other banks and financial institutions, etc. are on the basis Investments in shares & securities are on the basis oftheir respective maturitl,terr,r. ofrheir respective maturity, General investments are on the basis oftheir recovery/repayn-rent schedule; Fixed assets [propertv, plant & equipment] are on the basis oftheir useful lives; Other assets are on the basis oftherr realization/amortization; Deposits and other accounts are on the basis of their matrrity and payrnents; Provisions aud othcr liabilities are on the basis of their adjustment/settlement, Due to perpetual in nature/maturity, Mudaraba Perpetual Bond (MPB) is reported under maturity more thzur 5 (five) years. 2.1.13 Changes in accounting pnlicies fhe Bank changes its accounting policv only i1- the change is requrred by IFI1S or Bangladcsh Bank GLridelincs or rcsults in the flnancial stalemenls providing reliable and more relevanL infonnatton about Lhc eI'fects oftransaotions, other events or conditions on thc Bank's flnancial position, linancial perlorrnarnce or casl.r flou,s. Changes in accounting policies is ro be rnade through retrospective application by adjusling opening balance ol eaoh af}'ecteC components of equitv i.e. as rl new policy has always been applied. 22
23. Hoda Vasi Chowdhury & Co 2.1.14 IF-RS-16: I-ease In January 2016, the International Accounting Standards Board (IASB) issued IFRS-16. IFRS-16 rcplaces 1AS-17, IFRIC 4, SIC l5 and SIC 27 r.vhich sets or.ltthe principles lorrecognition, measurement, presentation and disclosure olleases which is effective lrom annual reporting periods begirrning on or after 01 .Tanuary 2019. Global Islami Bank Limited has applied IFRS I 6: "xs" for the first time with the date of initial application of 0l January 2020 using modified retrospective approach where the bank measured the lease liabrlity at the present value ofthe remaining lease payments and recognized a right-of-use asset at the date ofthe initial application on a lease by lease basis.As IFRS-16 supersedes IAS-17 Lease, the bank has made recognition, measurement and disclosure in the financial staternents-2020 both as I.essee and Lessor as per IFRS-I6. Bank as lessee: "The bank assesses at initiation of a contract whether the contract is, or oontains a lease. That is, if the contract conveys the right to control the use of an identified asset for a period of time in exchange of consideration, then the bank consider the contract as a lease contract. The bank as a lessee applies a single recognition and measurement approach for all leases, except for shorlterm leases, or, and lease of low value of assets. The bank recognizes lease liabilities to make lease payment and right-of-use assets represeuting the right to use the underlying asseis. If tenor of a iease oontraot does not exceed twelve months lrom the date of initiation/application, the bank considers the lease period as short torm in line rvith the recognition threshcld olROtl assets as per fA policy of the bank. The Bank determir.lc incrcniental borrowing latc ttr calculate the ROLi assets and depreciate the asset over the useful life by straight line method. 'fhe right-of-use asset is measurcd at cost, which is made up olthe initial measurement of the lease liability, any initial direct costs rncurred by the Bank, an estimate olany costs to dismantle and remove the asset at the end of the lease, and any lease payments made in advancc ol'the lease commencement date (nct of any incentives received). Subsequent to initial nrealureuru'nt, the liability r.vill be reduced for payments made and increascd lor interest. lt is prcmeasured to reflect any reassessment or rnodification, or ifthere ale changes in in-substance fixed payments. The Bank has elected to account for short{erm leases and leases of low-value assets using the practical expedients. Instead of recognizing a right-of-use asset and lease liability, the payments in relation to these are recognized as an expense in prolit or loss on a straighrline basis over the lease term.On the statement of financial position, right-of-use assets have been included in property, plant and equipment and lease liabilities have been included other liabilities. a- llight-of-use assets (ROU): "The bank recognises the right-of-use (ROU) assets at the commencement date of the lease (i.e. the datc the underlying asset is available for use). ROU assets are measured at cost less any accumulated depreciation and impairment ol losses and adjusted for any measurement of lease liabilities. The cost of ROU assets includes the amount ol lease liabililies recognised, initial direct cost incured, and lease paymenL made at or befbre the colnmenceillent date less any lease incentives received. Righrof-use assets are depreciated on a straight line basis over the lease terrn, or remaining period of the lease term. 'fhe bar-rk assessed all lease contracts live in 2020 and recognised as ROLI of assets of all leases, cxcept short ternr and lor.t, value of assets as guitled by Banks' own polioi, set as per IAS-16 and IIrRS-16. 'l'he RO[J asscts are prescntcd in the Notc 8.00 ofthese financial statements. " Lcase Liabilities (Bank as a lessee): "At the commencement of the lease, the bank recognises lease liabilities measured at the present valuc of leasc payments to be rnade over the lease tenn. The lease payments include fixed and variable lease payment (less iury adjustrnent for initial payment), and amount is expected to be paid under residual value ofguarantees. 'fhe lease liabilities are presented in the Note [3.0 ofthese financial statements. Banl< as a lessor: "l-eases whers thc bank does not transfer subslantially all ofthe risk and benefit o1'ownership o1'any asset are classified as operating assets. Rental income is rccorded as eamed based on the contractual temr of the lease. However, the Bank did not hold any such assets in 2020." 2.1.1,1 Recognition of Lcase by the Bank (a) Global lslami Bank Lirnited has applied IFRS 16 in 0l January 2020 using modifiecl retrospective approach whore the bank measured the lease Iiability at the present value ofthe remaining lease paymcnts and recognized a right-ol--use asset at the date of the initial application on a lease by lease basis. But among 1 58 branches and sub-branches ,GlB has applied IFRS-16 on only 29 branches. 2.1.15 Changes in accounting estimates E,stimates arise because o1'r.rncertainties inherent withrn thcm, judgment is rcquired but this does not undennine reliabilrtv. Ellect of changes o1- accounting estimates is rncluded in prolit or loss account. 2"3
24. Hoda Vasi Chowdhury & Co 2.2 Summary of significant accounting policies Accounling policies are determined by applying the relevant guidelines of Bangladesh Bank as weli as the relevant IFRS. Where there is no available guidelines of BB and IFRS, management uses its judgment in developing and applying an accounting policy that results in infonnation that is relevant and reliable. The Bank selects and applies its accounting policies for a period consistently for similar transactions, other events and conditions, unless IFRS or Bangladesh Bank guidelines specifically requires or permits categorization of items for which different policies may be appropriate. The accounting policies set out below have been applied consistently in all material respects to all periods presented in these financial statements. 2.3 Cash and cash equivalents Cash and cash equivalents include notes and coins in hand and at ATM, balances held with Bangladesh Bank and its agent bank. balance with other banhs and financial institutions which are not ordinarily susceptible to change in value. 2.4 lnvestment in shares and sccurities in shares and securities (other than Investment in Bangladesh Government Islamic lnvestment Bond) are initiirlly recognised at cost and subsequently measured and accounted lor depending on their classification criteria as either held to n-raturity or held fbr trading. Transaction costs that are directly attributable to the acquisition added to the initial cost except for the investment classified as held for trading rvhere they should be recognised in profit or loss. Investment Investments in quoted and unquoted shares are revalued at the year-end at market price and at net assets value (NAV) oi last audiled balance sheet respectively. As such, provision is made against the diminution in value of investnrents ttettrng offgain /loss arises liom the market olthe securities. Investment in subordinatedrbond is measured both initially and subsequently at cost. 2.1.1 Hcld to Maturity (IITM) lnvestments which are intended to be held till maturity are classilieri as 'Held to Maturity' (Hl'M). 'fhese are measured at amorlized cost at each year cnd by taking into account any discount or premium on acquisrtion. Premiums are amortized and discounts are accredited, usingthe eff'ective orhistorical yield. Any increase iu value ofsuch investtrertts is booked to equitl, bu5dccrease to prolit and loss account. 2.4.2 Investrnent- Initial recognition and subsequent measurement Invcstment class Initial Recognition Measurement after initial Recording of Changes recognition Cost Cost None Dehenture/Bond Cost Cost None Shares (Quoted) Cost Lower of cost or markst value (ovcrall portfolio) Loss (net Lower of cost or Net Asset Value (NAV) of last audited hnancial Loss to profit and loss account but no unrealized gain booking. Govt. treasury securities BGiIB/Sukuk Shares (LJnquotc'd) Cost ofl gain) io prollt and loss account but no unrcalized gain bool<ing. statelnents 2.5 Investments Iltvostments are recognized at gross amount on the date on which they are originated. Alter initial recognition investtlents are stated in the Balance Sheet net olf profit receivable and uneamed income. Hotvever, provision for investmcnts are not net-ofl with investments. Profit Rcceivable -the amount of unexpired portion o1'proiit charged on Bai-Murabaha investment at the goods/ services to customer/ client. titre of sale of lJnearned lncome - the amount ofunrealized portion ofprofit/ value addition of fixed assets lproperty, plant & equipmentl under Hire Purchase Under Shirkatul Melk (HPSM) investment for gcstation period. 2.6 Fixed assets [Property, plant & equipmcnt and intangibles] 2.6.1 Property, plant and cquipment 2.6.2 Recognition The cost of an item of propcrly, plant and equipmcnt is recognizcd as an asset if, and onl1, il, it is probable wtll flow to the Ilank and the cost olthe item can be measured reliablv. ihaL fittLrre economic benelits 2.6.3 Measuremenf at recognition An item ol propertl,, plant ancl equipment that qualifies for recognition as an asset is tneasured at its cost. l'he cost ol an item of propcrty, plant and equipment is the cash price equivalent at the recognition date. The cost of a self-constructed asset is detennined using the same principles as for an acquired )4 asset.
25. Hoda Vasi Chowdhury & Co 2.6.,1 Elements of costs and subsequent costs Cost rncludes purchase price (including import duties and non-refundable purchase taxes), riirectly attributable costs to bringing the asset to the location and condition necessary for it to be capable oloperating in the manner intended by the management and the initial estimate of the cost of dismantling and removing the itern and restoring the site on rvhich it rs located. Costs of day to day servicing (repairs and maintenance) are recognized as expenditure as rncurred. Replacement parts are capitalized, provided the original cost ofthe items they replace is derecognized. 2.6.5 Measurement of property, plant & equipment after recognition Cost model Aftcr recognition as an asset, an item of property, plant and equipment shall be carried at its cost less any accumulated depreciation and any accumulated irnpainlent losses. Revaluation model 'i'he revaluation model rcquires an asset, after initial recognition, to be measured at a revalued amount, value less subsequent accumulated depreciation and impairment accumulated losses. wlich is its fair Where an asset's carrying amounl is increased as a result of a revaluation, the increase is recognized in equity under thc heading ol revaluation surplus. However, the increase is recognized rn profit or loss to the extent that it reverses a revaluation decrcase ofthe same asset previously recognized in profit or loss. Where an asset's carrying amount is decreased as a result oi a revaluation, the clccrease is recognized in prolit ol loss. llorvever, the decrease is recognized in equity to the extent of anv credit balance existing in the revaluation surplus in respect ofthat asset. The decrease recognized in equity reduces the amount accurnulated under the heading ofrevaluation surplus. : 'fhc revaluation surplus included in equitl,in respect ofan item olproperty, plant and equipment is transferred directly ftr retained earnings when the asset is derecognized. However, some of the surplus is transferred as the asset is used by the Bank. h-r such a case, the amount of the surplus transferred would be the difference between depreciation based on the revalued ciurying amount ofthe asset and deprcciation based on the asset's original cost. 2.6.6 Dcrecognition of property, plant and equipment 1The carq ing amount ol an item ofproperty, plant and equiprnent is derecognized on disposal or when no tirture econornic benefits are expected from its use or disposal. The gain or loss arising from the derecognition of an iter:r of propertl,, pLurt and equipment is included as other income in prolit or loss when the item is derecognized. 2.6.7 Depreciation The depreciation charge fbr each period is recognized in profit or loss unless it is included in the carryuig amount o1' another asset. Depreciation of an asset begins when it is installed and available Ibr use, i.e. when it is in the location and condition neccssary lor it to be capable of operating in the manner intended by management. Depreciation of an asset ceascs at the earlier ofthe date that the asset is classilied as ht'ld for salc rnd ihe date that the asset is derecognized. 1-he residual value and the usel'ul lif-e ofan asset is revieu'ed at least at each tluirncial year-encl and, ilexpectations drlflr lrom previous estilnates, the change(s) shall be accounted lor as a change in an accounting estlnate Depreciation is calculatcd based on the cost/revalued amount of items of lixed assets [property, plant & equipment] less thoir estinrated residual values using either of straight-line method (SLM) or reducing balance method (RBN,I) over their estitnaled useful lives and recognized in profit and loss. Land is not depreciated. Rates of depreciation considering the uselul lile ofrespective assets are as lollows: ltems 2.7 Method Rates Estimaled useful life (Years) ta% IO Furniture & Fixtures Machinerics and eouinrnent Motor vehicle Straisht.line StraightJine Cloryp{er qnd peripheral Automated Teller Machines Books and ioumals Straight-line z0% 5 Straight-line Straieht-line z0% ) ) .5 Straishrline 5 20% Intangible asscts 2.7.1 Ilecog,nition olan item as eu-r intangible asset requires the Bank to demonstratc that the item meets the defilition ol an intangible asset and the recognition criteria. An intangrbJe asset is recognized as an asset il, and onlv if, it rs probable that expected future economic benellts that are atlributable to thc asset will flow to the Bank and the oost of the itent can be mersured rcliably. The recognition 2s
26. Hoda Vasi Chowdhury & Co 2.7.2 Measuremcnt An intangiblc asset is measured at cost less any accumulated amortizations and any accumulated impainnent losses. Subsequent expenditures are likely to maintain the cxpected luture economic benefits embodied in an existing intangible asset rather than meet the definition of an intangible asset and the recognition criteria. Therefore, expenditure incurred afterthe initial recognition ofan acquired intangible asset or after completion ofan internally generated intangible asset is usually recognized in profit or loss as incurred. The rates used for amortizing intangible assets is 20.00%. 2.7.3 Amortization The depreciable amount of an intangible asset with a finite useful life shall be allocated on a systematic basis over its useful life. Amortization begin when the asset is available for use, r.e. when it is in the location and condition necessary for it to be capable of operating in the rranner intended bv management. Amortization ceases at the earlier olthe date that the asset is classified as held for sale and the date that the asset is derecognized. An intangible asset with an inclefinite ruseful life is not amortized. 2.7.4 Impairmcnt of Fixcri assets Iproperty, plant & equipnrent and intangiblesl Recognizing and measuring impairment loss Where the recoverable amount ofan asset is less than its carrying amount, the carrying arnount ofthe assel is reducc.l to its recovcrable an.)ount. That reduction is an in-rpairment loss. An impairrnent loss on a non-revalucd assct is rccognized in prolit or loss. I-lolvever, an impairment loss on a revalued asset is recognized directly rn equity to the extent that the impairment loss docs not exceed the amount in the revaluation surplus fbr that same asset. Suoh an impairment lnss on a revalued asset reduces the revaluation surplus for that asset. The Bank assesses at the end of each reporting period ',vhether there is any indication that an asset may be impaired. lf any such indication exists. thq Bank estimates the recoverable amount of the asset. Irrespective ol rvhether there is anv indication of impairment, the Bank tests an intangible asset with an indefinite usefr-rl life or an intangible asset not yet available for use for impainnent annually. 2.8 Othcr assets Other assets include all other financial assets, other income receivable, advance agarnst expensus etc. 2.9 \on-bantkrg assets Non-banking assets are acquired on account ofthe failure ofa client to repay the inveshleni- in rirne after recciving- the from the coufi regardir-rg the right and titlc of the mortgaged property. decree 2.10 Placement l'rom banks and other financial institutions Placement frorn banks and other financial institutions are stated in the linancial statement at principal anrount of the outstanding balance. 2.11 Deposits and othcr accounts Deposit and othel aocounts inclurle Al Wadeeah current deposit as well us savings, terrrr and other Mudarrrba cleposits. Doposits by cttstotners and banks are recognized rvhen the Bank entcrs rnto contractuirl agreements rvith the eorrnterparties. 'l'hese items are brought to Financinl Statemellts at the gross value oithe outstanding balance. 2.12 Provisions 2.12.1 Provision for investments Provision for investments is made on the basis of quarter-cnd revietv by the management and instrrrciions contained in BRPD Circular no. 14 dated 23 Septcmbcr 2012, BRID Circular no. 04 dated 29 January 2.015, BI{PD Circular no C)B date<i 02 August 2015, BRPD Circular No.12, datect 20 August, 20i7, BRPD Circular No. l2 dated 20 August,20t7. BRPD Circular No. 0l dated 20 February, 201 8, BRPD Circular No. 0 l datecl 20 February,, 20l 8, BI{PD circular no 0l dated 2l April 20i9, BRPD circular no. 07 dated l9 March 2020 BRPD circula no. .56 dated l0 Decernber 2020,8I{pD circular no. 05 dated 24 March 2021 & BRPD circular no. 19 dated 26 August 2021 Dctails are given belorv: Particulars Classification/Percentage (7o) of provision requirement 3l -Dec-21 31 December 2020 Standard SN{A SS DI,- BI, Standard S]\,IA SS DF BI, 4.25% 0 2s% 20% 50% 100% 0.25% 0.25'/o 20ol' 50% I00oo for I lousing Finance Investment t9'o 10/ 20% 50% t00% t% I /t) )0% 50% I fbr 204 20% s0% 1000 50% 100% Smrrll and Mediurn Entcrprisc (SMII) I--inancrns Consumer lnveshnont Proltssion als 26 00%
27. Hoda Vasi Chowdhury & Co Particula rs Classification/Percentage (7o) of provision requirement 31 December 2020 31-Dec-21 Standard .-onsumer SMA BL Standard SMA SS DF BL 00% 5% 5% 20% 50% 100% 100% 10/ 1on 20% 50% 100% SS DF z0% 50% I 50% Other than lnvestment for Ilousing Finance & Prnfeqcinn al s All Other (Except Shortterm Agricultural and loA Micro-Credits) Short-term Agricultural on rl Ir,4i nra-/-rerlit< lo/o Investment to Stock Dealers & Stock Broker Special general provision for COVID 19: Unclassified loans/investments 100% 1% z00A 50% t% 20% 100% 2% t00% 5% 50% 1009'o l9/o & 2.12.2 Provision for ofl'-balancc sheet exposures In conipliance u,ith BRPD,.circular no. 1;l dated 23 September 2012, BRPD Circular No.7 dated 21 iune 2018 and BRPD Crrcular No.13 dated 18 October 2018 the Bank has been maintaining provision against off-balance sheet exposures (mainly contingent assets/liabilities) Note-13 1 (e) 2.12.3 Provision lbr other assets Provision tbr other assets is madc as per the instructions made in the BRPD circular No. 14 dati:d 25.Tunc 2001 and other instructions made by Bangladesh Bank. (Note- l3) a- for nostro accounts According to Foreign Exchange Policy Departmcnt of Bangladesh Bank vrde the circular lotter No. (irEPD)/01/2005-6'17 dated l3 Septerr-rber 200-5, Bank is not required to make provision regarding the unreconciled debit balance o1-nostro account as on the reporting date in these financials as there are no unreconciled outstanding entries for rnore than three 2.12.,1 Provision ntonths. 2.12.5 Other provisions, accrurls and contingencies 2.12.6 Recognition of provisions, accruals and contingencies has a present obligation (legal or corlstructive) as a resuh of a past event; it is probable that an outflow of resources embodying economic benefits will be rcquired to settle tl-re obligation: a reiiable estimate can be made of the amount of the obligation. Accruals are liabilities to pay fbr goods or services that have been reoeived or supplied but have not been paid, invoiced or formally agreed with the supplier, including amount due to A provision is recognized when the Bank cmploy.'es. Contingent liabilities are not recognized in the financial statements. Disclosure on contingenl iiabilities has been made on the thce of balance sheet under'Oflf-balance Sheet ltems'as per BRPD circular No. 14 dated 25 .lune 2-00i and BRPD 15 dated 09 l'{ovember 2009. 2.t2.7 lleasuremerlt of provision The amount recognized as a provision is the best estimate of the expenCiture required end ofthe reporting period. 1o settlc thc present obligalion at the 2.12.8 Changes and uses of provisions Provisions is reviewed at the end of each reporting period and adjusted to rcflect the current best estimate. If it is no longor probable that an outflow ofresources embodying economic beneflts will be requircd to settlc the obligatiou, the provision reversed. A provision is used only for expenditurcs for rvhich the provision was originally recognized. Only expenditures that relate to the originai provision are set against it. Setting expenditures against a provision that r'as originaily recognized fbr anottrer pr.rpose r,r,ould conceal the impact of $vo diff'eren1 events. is 2.13 Employee benefits I'he Barrk provides various long-term and short-lemr benellts to the employees under difl'erent schemes. Details benefits plans are given below: 2l olthe
28. Hoda Vasi Chowdhury & Co 2.13.1 Provident fund A "Dellned Contribution Plan" is a post-employment benefit plan under u,hich an entity pays fixed contribution into a will have no legal constructive obligation to pay further amounts. Provident fund benefit is given to the eligible staffs of the Bank in accordance with the rules of the provident fund duly recognized by the National Board of separate entity and Revenue of Bangladesh. The Fund is administered by the Board of Trustees and is funded by fixed contributions equally from the enployees and the Bank. The fund is managed separately from the Bank's assets, as per rules of the fund & section 399 of the Companies Act 1994. 2.I3.2 Gratuity fund Gratuity benefits are given to the staff of the Bank in accordance with the approved Gratuity Fund Rules. National Board ol Revenue has approved the gratllity fund as a recognized gratuity fund and the lund is operated by a separate Board of l'rustees. Employees are entitled to get the benefit afier con'rpletion of minimum 06 (six) years of service in the Bzuik The gratuity is calcglated on the basis of last basic pay of evcry employee in service as per IAS-19 "Employee Benelits". Gratuity fuirtl is a "Defined Bencfit Plan" and payable as per the modalities of the rules. Gratuity so calculated is transferred to the fund and charged to expenses ofthc Bank, 2.13.3 Other Employee Benefits Other employee benefits include which are not included in short-term employee benefits, post-employment benofits and other termination benefits. 2.13.4 Benevolcnt Fund The Benevolent Fund for the regular and corrfirmed employee's of Global Islami Bank Limited. This fund is mainly used for payment of scholarship to the meritorious students among the children of GiBL's officers and sub-stafl to allow shortterm quard/grant lor the rtrnexpected and certain needs of the staff of GiBL and their lamily like accident, ciinical treatment, marriage ceremony, etc. 2.13,5 Workers' Profit Participation Fund (WPFF) SI{O-336-AIN/2010 dated 5-10-2010 issuecl by the'luinistry of Labour and Employment' declares the status olbusrness ol cefiain institutions and companies along u,ith Bank & insurauce cornpanies as ''lndustrial L)ndertakings" for the purposes ofChrpter-Xv olthe Bangladesh Labour Act,2006 (as arnencled Lrp to 2013) u,hich deals ivith the ivorkors' p.rrricipar$ll in cornpany's profit by rn,ay of 'Workers Participation Fund' and'Welfare F.und'.-fhis Act requires the "lldustrial Undertakings" to rnarntain provision lor workers' profit participation lund @1 5Yo on rlel prol'it. Since this requiremeni contradicis rvith the 'section I l' of the 'Banli Company Act i99l (as arrencled up to 2018)', Banks in of Bankers Bangladesh i,imited (ABB)' 'Ministry of People's Republic of Bangladesh on of Firrance' of Governrrent to the on the same. ABB wrore a letter 09.03.2016 to draw attention ofthe honorable Finance Ivlinisterregarding relevance and applicability ofChapter XV ofthe Bangladesh tock up the issue collectively and sought opinion from 'Association Bangladesh Labour Ac1, 2006 (as arncnded up to 2013) for Bank Companies and to obtain a drrection on the issue. The 'Ministry of Finance' reveaied their opinion that WPPF should not be relevant for Bank Companies and therelbrc, it should not be appliecl there. 1'hey also sought for an opinion on thrs issue fiorn Bangladcsh Bank. Subscqucntiy. Bangladesh Bank agree<I on all the logics and legal opinion collected by the ABB and expressed their conscnsus with thern on 29.11.2016. In this backdrop, the 'lvfinistry of Finance' has given their instn-rction, r'irie letter no. 53.00.0000.311.22.00?..17.\30 dated 14.02.2017, fbr not app\,ing Chapter XV of the Bangladcsh Labour Act, 2006 (as amended up to 2013) in Bank Cornpanies. Therefbre, no provision in this regard has been made irr the flnancial statements for the period ended on 31 Dccember 2021. 2.1-l f aration hc tax expense Ibr the period oornprises cui'rent tax and delerred tax. Tax is recognized in the ittcor.nc slatclnsnt, itr the case it relatcs to iterns rccogr]izcd direct\, in equity. In this case, the tax is also rccogttized directli'in cc1uit1. l e)icLrpt ' " ' ::.::tJt1.tll, *. expccted ta-r payable on the ti.r-xable income lor the year. using rax rates enacte.l or substantially enac'"cd at the reporting date and any adjustment to the tax payable in respect ol prcvious ycars. Provtsion for currcnt incomc tax has been made on taxable income of the Bank as per lollowing rates: 2021 40% I.yne of income Rusiness income l\Y" tal gain Othcr Incorne (Dir idend incorne) 2. I 4.2 De fe rrcrl t.o i5"k 2001, 1020 40% 1]o/n to 15"/o 1Aot. la x Principle of rccognition Deferred ta.r is recognized as income or an e\pense amount rvithin the tax charge, and included in the net profil or loss for the period. Defcrred tar relating to items dealt with directly in equity is recognizetl directly in equity. 2B
29. Hoda Vasi Chowdhury & Co Recognition of taxable temporary difference def'erred tax liability is recognized for all taxable diff-erences, except to the extent tl-rat thc dcferred tax liability arises lrom the initial recognition of goodwill; or the initial recognition of an asset or liability in a transaction rvhich rs not a business combination; and at the time ofthe transaction, aflects neither aocounting profit nor taxable prolit (tax loss). A Recognition of dcductible temporary difference asset is recognized for all deductible temporary dilferences to the extent that it is probable that taxable profit will be available against which the deductible temporary difference can be utilized, unless the deferred tax asset arises from the initial recognition ofan asset or liability in a transaction that is not a busrness combination; and a1 the time ofthe transaction, affects neither accounting profit nor taxable profit (tax loss). A defered tax Measure ment Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the pcriod when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end ofthe reporling period. 2.15 Share capital and reseryes 2.15.1 Capital Authorizctl Capital Authorized Capital is the maxirnum amounl of share capital that the Bank is authorized to raise as per its Memorandum and Articlcs of Associarion.r' Paid-up Capital Paid-up Capital represents total amount ol shareholders' capital that has been paid in full by the shareholders. Shareholders are entitled to rcceive dividend as approved frorn time to time in the Annual General Mccting. 2.1 5.2 Statutory leservc a- As per section 24 ofthe Bank Companies Act, 1991 as amended, atleast20o/o olthc net profit belore tax is transferred to statutory reserve each ),ear until the cumulative balance olthe reserr,e equal 1o the paid-up capital. 2.15.3 Assets revaluation rcscrve This represents the difference between the book value and the re-valued amount ofpremises (Land and Building) ofthe Bank as assessed by prolessional valuers in the year 2000,2002,2003,2004,2005, 2006, 2009 ancl 2012 which rvere reviewed by the then statutory auditors. To calculate Capital to Risk Weighted Assets Ratio (CRAR), 50% of the same was ccnsidered as a component ofsupplementary capital as per Bangladesh Bank BRPD Circular No. 24 dated 03 r\ugust 2010 up to 2014. However, as per BRPD circular l8 daled December 21,2014, the revaluation reserve for Irixed assets [property, plant & equipment]already have been deducted from Tier-2 capilal with a phase in manner from 20 I 5 to 20 I 9. 2.15.4 Rcvaluatiou reserve of securitics lnvestment in shares ol Bangladesh Shipping Corporation qualified fbr Statutory Liquidity Reserve (SLR) as per Bangladesh Bank l,etter No. BCD (P)744(23XID/1030 dated 08 11.1983, BRPD CircLrlar No 1-5 dared 31.10.2005, DOS Circular Letter No. l0 dated i t 09 2006, BRPD Circular No.03 dated 12.03.2008 and DOS Circular I-etter No.05 dated 'fhe 26.05.2008. shues have beeu revalued as on 30.12.2017 on the basis of closing rnarket price ol Dhaka Stock Excharrge Lrmited (DSE). lhe surplus is credited to Revaluation Reserve on securiries accotrnt ancl 509.6 of the revah:atiop rescrve upto 20 l4 has been taken as a component of Supplementary Capital as per Bangiadesh Bank BRI,D Cirr:ular No. 24 dated 03 Augtrst 2010. and shou'n in the Statement of Changes in EqLritv as per Banglaclesh Bank guidclincs up trr 20 1 4 As per BRPD circular 1 8 dated Decernber 21, 2014, the revaluation reserve lbr securitics has been Ceductcd lrom 'fier-2 capital iiom 20 I 5 to 20 1 9. 2.15.5 Non-controlling interest I'lou-conlrolling interest is the equity in the subsidiaries that is not littributable, directll, or iudirectly to thc pxrent. fhe Bank attributes the profit or loss and each component ol equity to the owners of thc parent and to the uon-controlling interests. When the proportion of the equity held by non-controlling interests changes, the llanh atljusts thc carrying .unounts olthe controlling amd uon-controlling interests to reflect the changes in their relalive intcrests il] the subsidiaries. 'I.hc Bank prescllis non-controlling interests in the consolidated statement of financial position (Balance Sheet) within equity, separately from the equity ofthe owners ofthe Bank. Changes in tbe Bairk ori,nership interest in a subsidiary that do not result irr losirlg control of the subsidiarl' are equity transactions (i.e. transactions rvith oluners in their caprLcity as owners). 79
30. Hoda Vasi Chowdhury & Co 2.15.6 Regulatory capital in line with Basel-III Till December 20 14, as per Revised Regulatory Capital Framework in line for unclassified investments and off-balance with Basel III. full amount of general provrsion sheet items & Mu<laraba Subordinated Bond as capital gone-concern. Flowever, as per Guidelines on Iiisk Based Capital Adequacy (Revised Regulatory Capital Framework fbr Banks in line with Basel-l1l), BRPD No. 18, dated 2l December 2014, Assets Revaluation Reserve and Revaluation Resen,e of Securities has gradually been deducted in a transitional arrangement st;Lrting lrom January 2015 to Decernber 2019 (20% each year). Accordingly regulatory capital for the period has been calculated complying with all of these changes as per Revised Regulatory Capital Framework for Banks in line with BaselJII. 2,16 Income 2.16.1 Investment income lncome fiom general investments is accounted for on accrual basis except for investments undcr Musharaka, Mr.rdaraba, Bai-Salzun, Bai-as-Sarf and Ujarah modes of Investment where the investment income is accounted for on realization basis. The Bank does not charge any rent during the gestation period of investment against Hire Purchase uncler ShirkaLr-rl Melk (HPSM) rnode of investment but it fixes the sale price of the assets at a higher level in such a way to cover its expected rate ofreturn. Such income is recognized on realization basis. Profit/Rent/Compensation accrued on classified investments are suspended and accounted for as per circulars issued by Bangladesh Bank in this regard frorr time to time. At the time of recovery or regularization of those investments the related income which was suspended and shown as a liability is taken as investurent incorne (except compensation) as per circulars issued by Bangladesh Bank. As a result, all the transferred amount to lnvestment incorne lrom suspense during the year has already been included in the investment income of'the Bank. Profit on deposits with other banks & financial institutions is accounted fbr on accrual basis. 2.I6.2 Sharing of investment income In case of investment, Mudaraba lund gets prelerence over cost free fund. The investment income earned through deployment of Mudaraba Fund is shared by the Bank and the Mudaraba depositors at thc pre-agreed ratio. 2.16.3 Income from investmenl in Bangladesh Government Islamic Investment Bontl (BGIIB) Profit liorljnvestment in Bangladesh Government Islamic lnvestment Bond (BGIIB) is accounted for on an accrual basis. from investment in subordinated bond Profit from investment in subordinated bond is accounted lor on an accrual basis. 2.16.5 l'ees, commission and cxchange income 2.16.,1 Income Fees, comrnission and exchange income on services provided by the Bank are recognized as and when the relatecl services are rendered. Commission charged to customers on letter of credit and letter of guarantee are credited to Income at the time ol ellicting thc transacttons. 2.16.6 Dividend income Dividend income from investments is accounted for when the right to receive income is establishe<i. 2.17 Expenses 2.17.1 Management and other expenses Expenses incurred by the I3ank are recognized on an accrual basis. 2.17.2 Profit paid on deposits As per agreement between the Mudaraba depositors and the Bank in line wrth Mudaraba Principle Proilt is paid/provided to Mudaraba Deposit accounts at provisional rate on half-yearly/yearlylanniversary basis considering overall projected growth, perl'onnance and profitability of the Bank during the year. Final Rates of profit of any accoulting year f,re declared after finalization ofshari'ah inspection report and certifying the Investment Income ofthe Bank by the statutory auditors. 2.17.3 Zakat Zakat is paid by the Bank at the rate of 2.58% (instead of 2.50o/, as the Bank maintains its Accounts following Gregorian Year) on the closing balances ofstatutory Reserve, General Reserve (Retained Eanring). Zakat is chargeable in the Protit & l,oss account of the Bank as per "Guidelines for Islamic Banking" issled by Bangladesh Bank through BRPD Circular No. 15 dated 09 November 2009. 2.17.4 Dividend paynrents Final dividend is recognized when it is approved by the shareholders in Annual General Meeting (AGM). . Dividend payable to the Bark's shareholders is recognized as a tiabitity and rleducted from the shareholders'equity in the period in which the shareholders' right to receive the dividend is established. 2.17.5 Revenue, gains, expenses & losses prohibited by Shari,ah Income (doubtful, compensation & other earnings) which is prohibited by shari'ah are not being incl-rded distributable income olthe Bank. 30 i1 thc
31. Hoda Vasi Chowdhury & Co 2.18 Compensation Profit/Compensation accrued on overdue/classified investments is suspended and accounted for as per Circulars issued by the Bangladesh Bank. Moreover, incomes which are irregular (doubtful) as per Shariah are also not included in the distributable income of the Bank. Bank charges compensation on unclassified overdue investments. Such compensation is not permissible as regular income of the Bank as per Shariah. lnterest received from the balances held with Foreign Banks abroad and from Foreign Currency Clearing Account with the Bangladesh Bank and also other interest based Banks are also not credited to regular income since it is not permissible as per Shariah. 2.19 Other earnings with foreign banks and from foreign currency clearing account with Bangladesh Bank are not credited to income, since it is not permissible as per Shari'ah. These are expended for charitable purposes Interest received from the balances held after payment of corporate income tax thereon. 2.20 Inter-branchtransactions Transactions with regard to inter-branches and units are reconciled regularly and efforts are taken to minimize urreconciled entries at the end ofthe the year. 2.21 Earnings per share (EPS) Measurement Basic EPS The Bank calculates basic Earnings per share amounts for profit or loss attributable to ordinary equity holders ofthe parenl entity. Basic earnings per share is calculated by dividing profit or loss attributable to ordinary equity holders ofthe parenl entity (he numerator) by the weighted average number ofordinary shares outstanding (the denominator) during the period. Diluted EPS The Bank calculates diluted eamings per share amounts for profit or loss attributable to ordinary equity holders of the parent enti{. For the purpose of calculating diluted earnings per share, the Bank adjusts profit or loss attributable to ordinary equity holders of the parent entity, and the weighted average number of shares outstanding, for the effects of all dilutive potential ordinary shares. Dilution of EPS is not applicable for these financial statements as there was no dilutive potential ordinary shares during the relevant periods. Hence no Diluted EPS has been calculated. Consolidated basic EPS has also been calculated and presented in the same manner. Presentation The Bank presents basic and diluted eamings per share in the statement of profit or loss. The Bank presents basic and diluted earnings per share with equal prominence for all periods presented. The Bank presents basic and diluted earnrngs per share, even ifthe amounts are negative (i.e. a loss per share). 2.22 Events after the reporting period events after the reporting period that provide additional infonnation about the Companies'/Bank's position at the balance sheet date are reflected in the financial statements as per IAS-10 "Events after the Reporting Period". All material All other material events after the reporting period have been considered and appropriate adjustments/disclosures have been made in the financial statements as per IAS-10 "Events after the reporting period". ','ra Risk management The Bank Companies Act, 1991 as amended and the Bangladesh Bank Regulations require the Management to ensure eff'ective intemal audit, intemal control and risk management functions of the Bank. The Management is also required to make a self-assessment on the eflectiveness of anti-fraud internal controls and report to Bangladesh Bank on tnstances of fraud and forgeries. Bangladesh Bank (BB) is giving priority to the risk management of the bank and issued a revised Risk Management Guidelines for Banks by the DOS Circular No.-04 dated October 08, 2018 (Annexure-01) The previous DOS circular No 02 dated February 15,2012 (Annexure-03) and DOS circular letter no. 13 dated September 9, 2015 (Annexure-02) hereby superseded by this DOS Circular No.-04 dated October 08, 2018. As per the instructions olthis circular, the Additional Managing Director (AMD) of GIB has been nominated as Chief Risk OlTicer (CRO) to ensure the highest priority in risk management activities. GIB has Executive Risk Management Committee (ERMC) at management level consisting of member from the different core risks and other divisions under the chairmanship of CRO. GIB has also a high powered Board Risk Management Committee (BRMC). In addition, the Bank is also following relevant Bangladesh Bank guidelines on risk based capital adequacy, supervisory revier'v process, stress testing and managing the Banking risks in other core risk areas. ?1
32. Hoda Vasi Chowdhury & Co The risk of a Bank is defined as the possibility of losses, financial or otherwise. The Risk Management of the Bank covers 6 (six) Core Risk Areas of Banking industry i.e. i) Internal Audit and Compliance Risk; ii) Foreign Exchange Risk; iii) Investment (Credit) Risk; iv) Asset Liability Management Risk; v) Money Laundering Risk; and vi) Information & in Communication Technology Security Risk. The risk management procedures in the core risk areas have been devised periodically are Guidelines Risk Management line with the core risk management guidelines of Bangladesh Bank. Core per reviewed by the Bank and Bangladesh Bank periodically inspects the implementation status ofthese guidelines and as the reports of Bangladesh Bank, Global Islami Bank Lirrited is well compliant in Core Risk Management activities instruction of Bangladesh Bank, GIB formed a Risk Management Division (RMD) to fbrmulate and risk implement risk assessment and management policies, methodologies, guidelines and procedures for risk identification, risks, mitigating of steps by taking risk controlling of risk and level measurement, risk monitoring, deciding acceptable and Comprehensive Risk Management Report (CRMR), conducting monthly risk management meeting, stress testing with the reporting to the competent authority from time to time. It also reports to Bangladesh Bank on quarterly basrs along "Bank CRMR, minutes of the rnonthly meeting and all other required supporting papers. Moreover, in compliance rvith the Company Act 1991 as amended", Section 15 (Kha) and BRPD Circular No. 11 dated 27 Oclober,20t3 olBangladesh ln line with Bank, the Bank has constituted a Risk Management Committee comprising of 5 (five) directors from the Board to formulate and implement risk management policies, procedures and oversee the risk management activities of the Bank The prime objective of the Risk Management is that the Bank takes well calculative Business Risk Policy for safeguarding the Bank's capital, its financial resources and profitability from various risks. In this context, the Bank implemented all the gurdelines ofBangladesh Bank as under: 2.23.1 Internal Audit & Complidnce Risk Management Internal audit is an elfective mechalism to provide reasonable assurance on the attairunent ofthe organizational objectives through achieving efficiency in operations, reliability of financial reporting and cornpliance with applicable laws, regulatiols and internal policies. Primary objective of Intemal Audit and Cornpliance of Global Islami Bank, rs to enable the bank to perform better and add value through proper and adequate use ofinfrastructure and resources. GIB has established the lnternal Audit and Compliance Division (IACD) with lhe mission to provide independent ob.lectiveaaisurance and advice designed to add value and improve the banks'operattons. Depending on the size and complexity of the operations of the Bank, IACD of GIB comprises of three units namely Internal Audit Unit, Compliance Unit and Monitoring Unit. As a guidance in performing above duties, Global Islami Bank has prepared 'lnternal Audit and Compliance Manual' following the prevailing BB guidelines "Guidelines on Internal Audit & Compliance in Banks" and accommodating Bank's internal rules and practices. The manual is being reviewed from time to time. 2.23.2 Foreign Exchange Risk Management The Filancial Institutions' performance is directly related to Foreign Exchange Market. To ensure eff'ective Foreign Exchange Risk Management, the Bank has wide scope in establishing organizational structure and formulating Manual as per Guidelines of Bangladesh Bank. However, the Bank has already formulated a comprehensive manual. Bank maintains various NOSTRO accounrs in order to conduct operations in different currencies including BDT 2.23.3 Foreign Currency Transactions Functional and Presentation Currency (BD1'). The Financial Statements has been presented based on the Bank's functronal currency, Bangladesh Taka Foreign CurrencY Transaction The transactions in loreign cunencies are converted into equivalent Taka currency using the ruling exchange rates on the dates of such transactions as per IAS 21 "The Effects of Changes in Foreign Exchange Rates". At the Balance Sheet date related assets and liabilities are convefied to Taka using exchange rates prevailing on that date. 2.23.4 Investment (Credit) Risk Management 'fhe Management of specific investment risk is developed according to associated riskwith individtlal business units. The investment risk management function ensures that appropriate policies are established and ensures compliance wrth the related sanction, monitoring procedures and controls at the business unit level. Investment exposures are aggregated liom individual business units and are monitored on a regular basis. Investrnent risks rnay be summarized as under: l-l Difficulty in choosing core business; Failure in business of the customer; Encompassing a blend of Banking and non-Banking service; L Investment either too liquid or ofquestionable quality; ii Competition from other commercial Banks; l Security Control Risk; i l Market volatility both local and global, etc. I -i 32
33. Hoda Vasi Chowdhury & Co Portfolio monitoring is carried out by asset quality, background of the customer, soundness and viability of his,/her business and cash florv, etc. sector of the economy, cost ol long-term financing to match with the return on long-term investment. The Bank pays adequate emphasis on business risk than analysis of security risk because the security reduces the risk but does not always improve the quality of investment. Besides, the Bank addresses the Investment (Credit) risk guidehne cited by the Bangladesh Bank. As regards to other parts ofthe Banking business, the control staffs follow a pragmatic program ofregular monitoring and lollow-up. 2.23.5 Asset Liability Risk Management The goal of asset/liability management (ALM) is to properly manage the risk related to changes in profit rates, the mix of balance sheet assets and liabilities, the holding of foreign currencies, and the use of derivatives. These risks should be managed in a manner that contributes adequately to earnings and limits risk to the financial margin. The Asset Liability Management Committee (ALCO) that is formed with the senior executives headed by Managing Director conducted 1 2 meetings during the year 2020. The key agenda of the meetings were liquidity position, pricing, risk related to the Balance Sheet, maintaining CRR & SLR, Economic outlook & Market Status and rate of profit (interest). For managing Balance Sheet risk properly, the Bank prepared a Manual of the Asset Liability Management according to the guidelines of Bangladesh Bank and sincerely implementing the same. 3.23.6 Money Laundering Risk Management Global Islami Bank limited is taking preventive measures against money laundering and terrorist financing in line wrth the Money Laundering Prevdhtion Act 2012 (amended 2015), Anti-Terrorism Act 2013 (amended 2012 &.2013) and guidelines issued by the Bangladesh Financial Intelligence Unit (BFIU) from time to time. Clobal Islami Bank applies risk sensitive customer due diligence measures, monitor business relationship and record in line with regulations. I'he Bank regularly collects the accurate and complete documentation of I(now Your Customer (KYC) which enables thc prudentral prevention ol money laundering. Global lslami Bank has formed Central Compliance Committee (CCC) headed by the Additional Managing Director as Chief Anti-Money Laundering Compliance Ofl'icer & the committee regularly monitors aud ensrtres the compliance olissues relating to money laundering and terrorist financing through the trained personnel of head office & branches. 2.23.7 lnformation and Communication Technology Risk Management ICf risk is the risk associated with the use, ownership, operation, involvement, influence and adoption of ICT within a Bank. It consists of ICT related events and conditions that could potentially impact the business. 11 can occur with both uncefiain lrequency and magnitude and it creates challenges in meeting strategic goals and objectives. According to BRPD Circular No. 14 dated 23 October 2005 regarding "Guideline on Information and Communication Technology for Scheduled Banks", BRPD Circular No. 21 dated 20May 2010 and BRPD Circular No. 09 dated l7 September 2015, the Bank has followed IT Manual which deals operational risk, physical security control, potential for wide area disaster, data center disaster, recovery plan and backup/restore plan. The customers of GiB arc enjoying 24 hours Banking facilities through using Intemet Banking and Mobile Application with different services like other bank fund transfer, utility b111 payment, transfer to Mobile Financial Services (MFS) etc. In addition, SWIFT, REIITERS, GiB Visa Debit Card, Push-Pull Services & SMS Banking facilities are also available. . Reccntly The Bank has introduced Agent Banking Services around all over the country targeting unbanked rural people to bring under l'ormal banking services. 2.23.8 Internal audit 'lhe lnternal Audit independently and objectively evaluate and report on the effectiveness ofthe Bank's risk management, control, and governance processes. The Head ol Audit Unit although being a part of IACD administratively, is reporlrng directly to the Audit Committee of the Board and is responsible to the Audit Committee of the Board. Internal Audit ol GIB is being conducted based on Annual Audit Plan structured on a risk based approach and approved by the Audit Committee of the Board of Directors to provide vital information about risks and controls to assist the management in the following ways: a. Identilication ofgap in policy and procedures with the Business and its Operation. b. Identification ofbreach in policy and procedures against internal and regulatory policies & procedures. c. Assessment of qualitative and quantitative risk of the Business. d. Recommending remedial course of actions, where necessary. Irregularities detected in the bank's intemal control year have so far been rectified properly. & compliance report as well as external auditor's report of ihe previous
34. Hoda Vasi Chowdhury & Co 2.22.9 FraurJ and forgeries The Bank is operating its business by dealing with the public money. As a custodian of such money, Bank have to set up strong intemal control structure, introduced corporate governance, practicing ethical standards in the Bank for safeguar{ & interest of the Stakeholders. Public confidence has been shaken when dilferent typcs of malpractice, fraud and forgeries occurred in the Bank. Global Islarni Bank is lully aware olits responsibility towards stakeholders specially clepositors. Global Islami Bank follows a stringent screening process while recruiting officers and staff. The prospective employee's family background/employment history/ association are checked/cross checked in terms of integrity, attitude and behavioral pattem. The Bank has started to collect Police Clearance to know if the candidate had ever engaged in antisocial or anti state or detrimental/subversive activities. Check with Bangladesh Bank's Corporate Memory Management Systems for background check ofexperienced Bankers, Financial lnstitution's employees and verify National ID on-line. As a result, the Bank since its inception has seen comparatively very few cases of fraud and tbrgeries. Moreover, the Internal Audit and Compliance Division (IACD) have been strengthened to rernain ever vigilant. These have reduced the chances of fraudulent activities in Global Islami Bank. 2.23.10 Credit rating report As per the BRPD instruction circular no.6 dated 5 July 2006, the Bank has done its credit rating by Alpha Rating based on the financial statements dated 31 December 2020. Particulars I)ate of ratinp Lons Term Short term Rating valid A.lnha Ratins l7 A+ ST.2 16 June 2022 J:,lne 2021 2.2,1 Compliance with Financial Reporting Standards as applicable in Bangladesh 'l'he Bank cornplied, as per Para 12 of Securities & Exchange Rule 1987, with the follorving International Financial Reporting Standards (lFRSs) and International Accounting Standards (lASs) as adopted by The Institute of Chartered Accountants of Bangladesh (ICAB) in preparing the financial statements of the Bank subject to departure described rn note - 2.1, where we have lollowed Bangladesh Bank guidelines: asl. No. IT'RS/IAS IFRS/IAS Title No. Compliance Status First-time adoption of Intemational Financial Reporting Standards Not Applicable 2 2 Share-based Payment Not Applicable ) 3 Business Combinations Complied 4 4 lnsurance Contracts Not Applicable 5 5 Non-current Assets Held for Sale and Discontinued Operations Not Applicable 6 6 Exploration for and Evaluation of Mineral Resources Not Applicable 7 7 Frnancial Instruments: Disclosures Complied 9 9 Financial Instruments Jomplied l0 ll Joint Arrangements Not Applicable il 12 Disclosure oflnterests in other Entities Not Applicable t2 l:l Fair Value Measurement Complied l3 t4 Regulatory delerral accounts Not Applicable 14 15 Revenue from contracts with customers Complied l5 16 Lease Complied Presentation of Financial Statements Complied I ') 2 Inventories Not Applicable ) 7 Statement of Cash Flows Jomplied 4 8 Accounting Policies, Changes in Accounting Estimates and Errors 3omplied 5 l0 Events after the Reporting Period omplied 34
35. Hoda Vasi Chowdhury & Co Sl. No. IF'RS/IAS IFRS/IAS Title No. Compliance Status Complied 6 12 Income Taxes 7 16 Property, Plant 8 19 Employee Benefits 3omplied 9 20 Accounting for Govemment Grants and Disclosure of Government Not Applicable & Equipmenl 3omplied Assistance l0 21 Ihe Effects of Changes in Foreign Exchange Rates Somplied l1 23 Borrowing Costs Not Applicable t2 AA Related Party Disclosures 3omplied t3 26 Accounting and Reporting by Retirement Benefit Plans Not Applicable t4 27 Separate Financial Statements 3omplied t5 28 Investments in Associates and Joint Ventures Not Applicable t6 29 Financial Reporting in Hyperinflationary Economics Not Applicable t7 1Z Financial Instruments: Presentation 3omplied 18 JJ Eamings Per Share t9 36 lmpairment of Assets Complied 20 37 )rovisions, Contingent Liabilities and Contingent Assets Complied 21 38 lntangible Assets Complied 22 39 Financial Instruments: Recognition and Measurement Complied 1-t 41 Agriculture Not Applicable omplied 35
36. Hoda Vasi Chowdhury & Co Amount in Taka 2021 ll 2020 Cash in hand Cash in hand (including foreign currency) & it's Balance with Bangladesh Bank (lncluding foreign currency) agent banks r) 1,094,962,589 ()Jote-3 2) s.112.676.296 Qllote-3 6,207,638,88s 735,621,228 t ,087 ,302,7 42 _J)ppztpJ!_ Cash in hand (including foreign currency) 3.1 In local currency Cash at ATM (in local currency) In foreign currency 1,009,582,640 666,28 1,023 59,528,600 2s.85 l.349 42.36t.000 26,979.205 __1,02t2{2ts!2_ ______J15,atp!_ Balance with Bangladesh Bank 3.2 & it's agent bank(s) (including foreign currency) B:rlance with Bangladesh Bank ln local currency ln foreign currency 4.957.472.428 7,446,490,265 45.152.639 6 5.002.62s.067 Balance with Sonali Bank Limited (as agent ofBangladesh Bank) In local currency In fbreign currency 1 6,5 04,820 8,062,995,08s 110,051,229 3,024,301 ,6s 110,051,229 3,024,307,651 -7 i _____5;r2fr5u5_ _____lJeffi;9UA_ 3,3 Cash Reserve Requirement (CRR) & Statutory Liquidity Ratio (SLR) Cash Reserve Requirement and Statutory Liquidity Ratio have been calculated and maintained in accordance with section 33 ofThe Bank Company Act, l99l (amended upto 2018) and MPD circular nos.O1 & 02, dated June 23, 2014 and December 10, 2013 & DOS circular no. I dated l9 January 2014 and MPD Circular no.0l dated April 03, 2018 and DOS circLrlar letter n0.26 date?l9 August 2019 and subsequently MPD circular no.3 dated April 09,2020. The Cash Reserve Requirement on the Bank's time and demand Iiabilities at the rate of 4.00% has been calculatcd and maintained with Bangladesh Bank and 5.50% Statutory I.iquidity Ratio for Islamic banking, excluding CRR, on the same liabilities has also been maintatned in the form oftreasury bills, bonds and debentures including FC balance with Bangladesh Bank. Both the reserves maintained by the Bank are in excess ofthe statutory requirements, as shown below. a) Cash reserve requirement Bi-weeklv requirements Required reserve 4.173.27 Actual reserve maintained Surplus / (deficit) 4.940.s66.034 8.41I 3,7 18.641,20t 1 .s83 .47 4 __-___J67N_eL _____1,E5{!l!,0!!_ Dailv Reouirements b) Required reserve 3,651.618.609 Actual reserve maintained Surplus / (deficit) 4.940.s66.034 7 1,288,947,425 4,329,663,237 3,253,81 1,0s0 .583 .47 4.287 Statutory liquidity ratio Required reserve 5,738,257,8 Actual reserve maintained 9"275,5 I 8,495 Surplus / (deficit) c) Components I5 -_____$JZ2@.6!g_ ofSLR Cash in hand Balance with Sonali bank Surplus of CRR I,094,962,589 as agent of Bangladesh Bank Govt. securities 7 r l ,721 ,43 I ,859 14.925.375.r38 ------&!]p13272- I 10,05 r,229 735 ,228 "621 3.024.307,651 767,287,623 3.864,83 3.086 .303.217 .054 7.300.613.167 ____2A5ALA21_ _____uJ2s,tz5Jl!_ Total required reserve 9,911,536,226 Actual rcserve held Surplus / (deficit) 14.216.081.529 ____lJ!1d48!i_ 36 15,110,073,060 ,125 _--___145!l26J05_
37. Hoda Vasi Chowdhury & Co Amount in Taka 2021 3.4 Maturity grouping of ll 2020 cash Payable on demand 1.094,962,s89 3,7s9,928,885 5.112.67 6.296 8,062.995.085 Up to 1 month Over I month but not more than 3 months Over 3 months but not more than 6 months Over 6 months but not more than 1 year Over I year but not more than 5 years Over 5 years _______!?r,ot!,E!s _JJ.822p21pl!_ Balance with other bank and financial institrrtions Inside Bangladesh (Note-4.1) (Note-4.2) Outside Bangladesh I 6s,835,732 ________322il1i55_ 4.1 93,409,074 426.689.134 80,97 1,566 74,380,640 r In Bangladesh Current deposits EXIM Bank Limited Gulshan Branch Gulshan Branch Trust Bank Limited 9,107,790 23.339.738 4.820.1 r I 32,441,528 6,58r,798 99,876,322 33,005,741 43,43 1,800 396,644 t09.497 342,388 2.569.820 133,388,204 l 65,835.732 93,409,07 4 294.868,48s 55.8'12.7 42 | ,161 ,687 Snecial notice denosits First Security Islami Bank Lrimited Union Bank Limited Union Bank Limited First Security lslami Bank Limited 1.2 Gulshan Branch Gulshan Branch Agrabad Branch Agrabad Branclt 86,827,276 Outsidc #itgladesh (NOSTRO Accounts) (Annexure-A) Mashreq Bank, New York Aktif Bank , lstanbul, Turkey 23.173 1.628.941 "118 654,480 Aktif Bank, lstanbul, Turkey kookmin Bank, Seoul, korea United Bank of India, Kolkata, India AB Bank, Murnbai, India MCB Bank,Karachi, Pakistan kookmin Bank,Seoul, Korea 7 t0"959 2,660,02s 3,372,462 4, I 37,098 21,639.327 4,s23,3 88 4,1\ 6,448 154,673 63,062 78.80 1.330 4.683.564 _____125ld4t]!_ 1.3 40,483,268 80,971,s66 Maturity grouping of balance with other bank and financial institutions Payable on dernand Up to Over I month 459,136,663 87,5 53,3 64 133"388,204 86.827.276 5g2,524,;66 174,380,640 ,2t9 2,996,96 I ,80s 1 month but not more than 3 months Over 3 rnonths but not more than 6 months Over 6 months but not more than I year Over I year but llot more than 5 years Over 5 years Placement with bank and other financial institutions Aviva Finance Limited Phoenix Finance 2.993 & Investment Limiled Union Bank Limited "177 I 00,000.000 3,293,177,219 5.000.000 3 3,011,961,805 Due to severe impact of Covrd 19, Government has taken various measures to f-acllitate the affected NBF'ls to regenerate its regular operation. The Bank assess the recoverability ofthe balance ofthe NBFI and conclude that no additional impairrnent provision is required. However, using prudence, the Bank has not accrued interest for the period ifnot realized. In addition to above, Banker's meeting held on January 14, 2O2O lLetter Ref. BRPD (P-2)174812020-1541 dared February'0g, 2O2Ol presiding by the honorable Governor of Bangladesh Bank, deoided that Bank will not encash their deposits with FIs befbre maturity as well as they should keep assisting FIs by renewing their existing investment to the affected FIs.
38. Hoda Vasi Chowdhury & Co Amount in Taka 2021 | | 2020 Investments in shares & securities (Annexure-B) Investment classsified as per Bangladesh Bank Circular Claim-wise Government securities (6. Other investments (6.2) 1) Nature-wise I Ield for Trading (HFT) FIeld to Maturiry (IITM) Other than those classified r.rnder HFT and HTM 7,303.217 7,300,613,167 "054 1,507,7s8,43 l 270,200,3 88 8,810,975,484 7,570,813,555 ,303.2t'7 ,051 1.507,758.43 I 1 7 7,570.8 13.s55 8,810,975,,184 Revaluation of sharcs All ,300,613,161 270.200.388 & securities Shares and Securities are shown at cost price which have been recognized at closing market price as on 3 I Decernber 2021 ofDhakaStockExchangeLtd (DSE)asperBRPDCircularNo.l4dated25.06.2003 andDOSCircularNo.05dated26May 2008. Netting-off un-realized gain and diminution of values in securities as per DOS Circular No-4 dated 24.1l.20ll, the ultimate requirement of provision for Capital Market Investment for the year 2021 (Note-6.2) is ZerolNll-. 6.1 Govcrnment securities Treasury bills Government notes/ bonds i 5,582,716.113 ,7 I 7.054 _____JfiA1t5!_ 6.2 l.7r 7.837.054 7,300.613,167 Other investments Debenture and Bond PrelerencelSfiares I,344,060"000 Share subscription 38,614,138 37,500.000 Secondary share 87,584,292 191,086,250 41,614. 138 37.s00.000 Gold etc. _-_____lt0zJ5!ll]_ 6.3 Bangladesh Government Islamic Bonds 3 months Bangladesh Government Islamic Bonds 6 months Bangladesh Government Islamic Bonds 3 years Bangladesh Government Bonds 5 years Bangladesh Government Sukuk Bonds Treasury Bills l4 days treasury bills 91 days treasury bills 1 82 days treasury bills 364 days treasury bills 6.4 270,200,388 Held to maturity ss0,000,000 1,500,000,000 2.011 .054 5.25 1.200.000 __-___lJ!121rJ51_ 2,017,054 1.71s 1,717,8J7,0s1 3,292,425,600 78 1,552,300 l3 _______5lE2J76JlJ_ _______IJ0JJIIJ!!_ _-_____lJ0!-61lJ5Z_ Maturity grouping of investments Payable on demand Up to I month I month but not more than 3 months Over 3 months but not more thau 6 months Over 6 montl]s but not more than 1 year Or er I year but nol more tlrarr 5 years Over 5 years Over 81 ,584.292 41,611,138 t,1 53,976.1 52 5 5 0.000,000 1,s00"000,000 r,346,077 ,0s4 5,327,314,138 3.91 5,985,ti I 5 46.563,491 429,273.829 267.580.124 171 ______!,EMZ5d!4_ ______1,s7!,!_!3,sss
39. Hoda Vasi Chowdhury & Co Amount in Taka z1zt | | 2020 Investments In Bangladesh 1,12,383,234,291 Gross Murabaha, Bai-Muajjal, etc. (Mark-up profit on unearned income) Net Murabaha, Bai-Muajjal, etc. (Note 7.1) Bills purohased and discounted Lcss: Profit receivable on Murabaha, Bai-Muajjal etc (Mark-up profit on unearned income) Bills purchased and discounted-net Outside Bangladesh 87,412,938,196 6,600,5s2,870 Less: Profit receivable on Murabaha, Bai-Muajjal etc 105,782,681,421 1 (Note-7.2) .304.728,441 436,555 1.304.291,889 87,412,938, I 96 5,496.232,247 5,496,232,217 ____1qz$62ir-l_q_ ____)2$2-J19!43._ 7.1 Net Murabaha, Bai-Muajjal, etc. t1t.479 Bai Murabaha continuous investments Less: Mark-up profit ,07 4,129 95,040,022,513 Bai Muajjal continuous investments Less: Mark-up 77,667,936,298 6.439.0s 1.616 1 .291 profit ,823,t27 77,661,936,298 957,870,9 I 0 96,784,373 1,195,038,754 s99,036 I Quard Mode 957,870,9 l 0 864,\47 Less: Mark-up profit 864,147 s99,036 136,431.770 Bai Murabaha (lmport) Less: Mark-up profit 85"139,695 4.162.371 85,139,695 3.498,s01 132,269,399 Inr.st?,i",.rt in Murabaha (Expofi) Less: Mark-up 21 profit 2 Bai Murabalia Forced Investrnent 3 08,3 54, I 07 21.3 17.e85 Less: Mark-up profit 285,036,122 496,504.336 Bai Murabaha term investments Less: Mark-up profit 27,965,371 459.390.212 22,396,541. 47 4,107 ,795 216.671 ,344 8.398. I 75 Bai Muajjal term investments Less: Mark-up 13,198,s04 27 .965.31 I profit Staff investment Less: Mark-up profit 439,233,321 207,040.131 208,213,169 199,181,773 359,676,844 347 ,307.90-l 6,441,808 353,235,037 52,05 1,5 lnvestment in card 5 I 341,510,274 5 l "846,396 Less: Mark-up profit HPSM term investment Less: Mark-up t2,923,823.751 8,042,048,046 12,923,823,751 profit 105,782,68 I,42 1.2 5I,846,396 52,051,5s1 8,042,048,046 t ____22!2,11!A!3* Bills purchascd and discounted Payable inside Bangladesh Local bills/ documents 1,304.728,444 5,496,232,247 t.304.728.444 5,496,232,247 Foreign bills/ documents Less: Prollt receivable on Murabaha, Bai-Muajjal etc (Mark-up profit on unearned income) 43 6,5 55 ___aaaruY- Payable outside Bangladesh ___tw* _______lJ042s !,EItg_ _______5A952n2!J_ 39
40. Hoda Vasi Chowdhury & Co Amount in Taka 2021 7.3 I 2020 Performinginvestments Gross lnvestments investments Less: Non-perfbrming Note- 7 Nore-7.12 101,086,973,310 2,386,107,553 ____t!4flqg(5J5' 7.4 | 92,909,170,443 1,994,542,276 ___-r,trr.r,* Residual maturity grouping ofinvestments including bills purchased and discounted Repayable on demand 26,s00,53 7.840 26.782,452,02s 10 71? 7{{ t{.) Not rnore than 3 rnonths Over 3 months but not mors than I year Over I year but not nlore than 5 years 9,627,118,901 Over 5 years 236,112.158 40,808.040, l 69 36,116,323,176 t4,827,332.483 4.114.t09 .392 891.362.157 -____1!7J!62ruU_ --___22p!2u!t$_ 7.5 Residual maturity grouping Payable Over of bills purchased and discounted within I month I 1 month but less than 3 months Over 3 rrontlrs but less than 6 montlrs 6 months or rnore 320"773 _____J!l221,!!2_ 95,040,022,513 8,754 9.129.7 15.598 r Bills purchased and discounted 52,154,79t,256 7,272,720,430 1,1 95,03 Ternl Investments net Others neLNote- 7.2 26.332.87 5.897 4fi.904.556 1.6s2.5s0.6 I 3 05,782,681,42r r,104,29 r,889 87,412,938.196 5.496.232.241 *___1!2,0!('9lltl!_ ___zpa&$3_ Investnlents on the basis ofsignificant concentration Investnlents lo dircctors and allied concerns ofthe directors 68,029,252 13,986,r 60 Investments to staff Chielexecutive and other senior executives 27 6,861 Other employees c) 5,496,232,247 Investments under the following broad categories Bai Murabaha continuous investments net Bai Muaj.jal net 7.7 a) b) 1,903,004 67 6.506 923.979 I 7.6 5,493,652,737 ,300,896,214 2,150,923 226,046,014 .096 76.206.038 69.570.042 3s3,073,1 35 295.6 r 6,056 332,285,632 75 1,870,38 I ,t7 4,58s 2,484,262,437 2.27 5,89s.690 Investments in industries Agriculture Commercial real cstate finarrcing Construction 36,664,8 47 I8 Consumer finance Residential real cstal.e financing 137,422,110 169.252,184 73,043,286 66,848,579 Capital market institution Trcnspon. slorage and cornmurrication Retail investments 593,325.144 242.836,987 543,991,707 246,915.9s8 1,972,287 ,128 Cornrnerciul antl rradirrg services Ready Made Garn.rents-RMG 88,435,6 I 6,685 1.852.296,521 1,865,41 1,870 7 6.097 .37 1 ,487 t.9l 1,659.893 Srnall arrd Mediurn Enterprise invesllncnts Textile industries 2"502,487,930 1.857.197.470 Other manufacturing industries 3.941 .03 s.33 0 3.302.244.420 3,9 s 5,5 8 8,24 8 I 06,665,870,923 3,57 0.452,668 92,599,568,227 ___J0zJ!6Jl3,i_10 _____29!9J_ZQdll_ 7.8 Sector-rvise Invcstments including bills purchased and discounted Public sector Private sector 07,086,973,3 I 0 92.909.170.443 _____1!7J!6JZi,1_!_0 _____22p92,11!t!t_ 1 40 ffi W
41. Hoda Vasi Chowdhury & Co Amount in Taka 2021 ll 2020 Geographical Location-wise Investments 7.9 Area As at 31 December 202I Comnosition As at 31 December 2020 Inside Bangladesh b) In Urban Areas )haka 29.262.290.884 33.43Yr 24.824.57 5.77 0 32.69% Chattosrarn 58.043" 1 50.1 20 66.3toA 50.967.551.445 67.11% Amount Amount Comnosition Svlhet 26.2s9.908 0.030A I 7.000.200 0.02% Raishahi 61 .273.119 0 07% 3 5.3 76.5 8 s 0.05% Rangnur Khulna 113.792.935 Barishal 26.259.908 0.00% 0.13% 0.03% 0 00% Mvmensinsh Sub-total 87,533,026,874 a) In Rural Areas Amount Dhaka 3hattogram 100"/o Composition 2.547.896.360 13.03% .001.87 6.617 86.950A 17 Sylhet Raishahi Rangpur t Barishal 0.000/. Mvmensinsh 0.000/. Sub-total I r9,55J.946.4J6 .8t3.282 0.t2% 1 .7 55.67 0 0.02% 1 0.00% 75,944,072,952 Amount 100% Composition 1,969.t71 .863 14,993.93 s,128 0.00% 0.02% 0.00% 0.00% 4,t73,458 Khulna 0 00% 87 1,984,500 1.1 61% 88.3 8% 0.00% 0.0t% 0.00% 0.00% 0.00o/. 0.00% L000h 16.96s.097.49I t00yo 100. 92,909,170.413 LOOOA ULrtsrde [Jangladesh Total 107.086.97J.J10 7.10 Details offqrge investments Disclosure on large illvestment i.e. investment sanctioned to any individual or enterprise or any organization oi'a group atnounting to l0% or rnore of the Bank's total capital and classified antount tl.terein and rneasurcs takerr fbr recovery of such loan have been furnished as under.'lotal capital ofthe Bank was Taka 8,837,057,880 as on 31 December 2O2l and 7,836,300,621 as on 3 I December 2020. Number of clients Amount of outstandtng investments Amount ol classilled investments Measures taken lor recovery Namc of clients 32 Outstandins Funded Non-funded Nassa Group 995,302,730 8 35322.347 .t33 9,7 48,102.329 891.627 .509 89 1.243.1 6s Note: 7.13.1 Note: 7.'l3.1 Total Total 995.302.730 995.048,687 3.483.259.200 889.736.428 3.483.259.200 3.483.259.200 50.000.000 t,050,41 1.750 r,330,057.6 I 6 1.045.915.3 12 Givensee Garments Accessories Ltd Limited Md. Tamizuddin 889.736.428 SS Power Trade Exposure Link Shopin Trade Powerpac Mutiara Jamalnur Power MH Tradins Hotel Sarina Ltd (Syndicate) M/s. Ahsan Azad 1.050.41 1,750 980.057.6 l 6 3 927.000.4s4 t.062.255.026 927.000.454 1.062.255.026 926,7 s8,945 891.627.509 I.000.669.900 89 I .627.509 1.000.669.900 8q1,241,165 1. l 88.673.605 1, I 88,673,605 M/S Nabir Trading Corporation 1.277.628.687 t.277.628.687 t.234.445.2t6 1,234,445.216 1,188,4s7,r 15 1,r88,457,tl5 M/S Reasonable Traders M/S Imperial Corporation 16.5 13.201 796.130.572 M/S Modern Trade & Business House 8 7q),633.241
42. Hoda Vasi Chowdhury & Co Amount in Taka z02t I Delegate Trade International 1.020.748.852 1.020.748.8s2 Echo Trade Corner Amin Traders 926.079.606 t.030.196.172 t.030,1 96.1 72 I 2020 926.079.606 NOB Trade International Rainbow Cornoration Huda Enterorise 927.564.018 091 742 237 927.564.0t8 2i5 059 728 091 .7 42.237 5ts 385 0s9.728.21 5 r02.515.38s 073.291.432 073.291.432 I.240.293.418 1,240,293,418 Busin l. I 88.673.605 1.1 Invention Trade International I.t42.7 4t .610 1.142.7 4t Indigo Trading Cornoration 980,965,000 980,965,000 920,9 r 0,000 920,9 I 0,000 980,965,000 980,965.000 980,490.000 Ir4inhai Cornoration Shah Amanat Traders M/S .lupitar Trade International 102 M/S Modern Trade & 88.673.605 .610 Crystal Clear Trade l,ink Rockland Trading IIouse fitan International 980,490.000 Vierv Point Corporation 946,7 82,t 55 1.062.2s5.026 l, r 26,880,147 M H Tradins Moni$rade International 946,7&2.t 55 1,062,2s5,026 1.126.880.147 31,489,087,93J 7.lt 3,833,259,200 35,322,347,133 Sccurity/collateral-rvisc conccntration of invcstmcnts (including bills purchascd and discounted) Collateral of movable / imrnovable assets Fixed deposit receipts B Other securities 5,5 7 8,5 89.8 l 0 71 ,508.2 I 5,405 1.t6s.245.534 I,923,674,963 6,425,156,984 6.7 43,738,648 7.980.983 12.733.541.427 107,086,973,3 I 0 92,909,170,113 Personal and corporate guarantee 1.12 9,748,102,329 1 3,9 1 Grouping of Investmcnts as per Classification Rules of Bangladesh Bank Status As 3l December 2021 Amount Comnosition As at 3l Amount Dccember 2020 Comoosition Unclassified: Standard (including stalf lnvestment) 5peclal Mentlon Account 104.647.257.194 97.72% 90.7 61.073.57 8 53,608,5 63 0.05% 260,5 54.5 89 (SMA) Sub-total 101,700,86s,7s7 97.69% 0.28% 91,024.628.167 Classified S ubstandard 33 t.353.729 0.310/n 391 .526.7 949.954.1t I 0.89% 918.252.469 0.99% | .104 "799.7 t3 2,386,1 07,553 1.03% 568,7 63,08 8 0 61% Doubtful Bad or loss Sub-total irand Total 7.13 107,086.973.3 r 0 t9 o 4i% 1,884,512,276 100.00% 92,909,170,113 r 00.00% Movement of classified inyestments Opening balance 1,884,542,276 Addition/reductron during the period Closing balance 42 I ,461 ,60 1,656 501.565.277 422.940.620 ______2J!5J!255J_ _____Jlytaa6 ffi w
43. Hoda Vasi Chowdhury & Co Amount in Taka zo2t 7.13.1 I I 2o2o Measures taken for recovery of investments Bank as a whole has taken following steps to recover its classified investments a) Sending letters and reminders to customers; b) Special assets management department is responsible for holding discussion with the clients to recover the investments; c) Disposal /encashment ofsecurity through legal action; d) Legal proceedings and settlenlen; e) Rescheduling or restructuring as and when required; f) Negotiation and settlement with approval from competent autliority, etc' 7,14 Particulars of rcquired provisiorl for investments General Provision Rate Base for provision Status 94,437.890,619 26.998.594 94-464-889-214 Standard SDecial rnention account Various** 10,184,636,334 Snecial nrovision fbr COVID Provision Amount Provision Amount 905.762.091 24.232.748 900.734.649 929,991,839 956.381,750 139.453.660 r40,812,760 5 5,647, l 0l **General provision is kept @ 1o% on general investments andO.25Y" on small and medium enterprises ftnancing,2o/oon certain other types oflending and2Yo on consumer financing. Specific Provision r' Provision Amount Sub-standard-SME r 3t,817,238 59,086,191 49.120.138 95]l.437 t2.930,129 281 .365,771 21t.77 s.915 r,002,553,201 1.749.502,120 Required provision for investments etc. Total provision marntained (note-13. 1) Excess / (shorl) provision at 3 1 December 202 I 7.15 Particulars of required provision on Off-balance Sheet Exposures Base Particulars Acceptances and Note:17.1 Note:17.2 endorsements Letter of suarantee Letter of credit {ote: 1 31 Provision at 1.00"h Provision at 1.00%o 1,803,562 918,036 7,082,20 l 4.255.486.000 42,5 54,861 4 1.439.875 I .086, r 95.070 10,861,9s I 4,898,1 48 5.433.484.632 s4.334.848 53.420.224 54.33,1,848 53.420.224 88,742,472"378 73,43 1,890,368 9 7.3 Required provision on Offbalance Sheet Exposures Total provision maintained Excess / (short) provision at for nrovision Decetnber Particulars of Investments 1.16 (i) lnvestments considered good in respect ofwhich the banking company is fully secured (ii) Investments considered good for which the banking company holds no other security than the debtor's personal security (iii) Investments considered good and secured by personal security of 5,179,001 392 6,7 43,7 38.648 one or more parties in addition to the personal security ofthe debtors 13, I 65,499,540 12,733,541 "427 (iv) lnvestments considered bad or doubtful not provided for 107,086,973,310 92,909,170,443 42t.t02,387 309.602,212 (v) Investrrents due by directors or officers ofthe banking company or any ofthem either severally orjointly with any other person 43
44. Hoda Vasi Chowdhury & Co [,-,*-l Amount in Taka 2021 ll 2020 (vi) Investments due by companies or firms in which the directors of the banking company are interested as directors, partners or managing agents or, in the case of private companies as members (].,lote 53.5). (vii) Maximum total amount of investments, including temporary investments made at any time during the period to directors or managers or olficers of the banking company or any of them either severally or tointly with any other persons. (viii X46yl6ss total arnount of investments granted during the period 10,064,111 7,503,000 inclr.rding temporary investments to the companies or firms in which the directors of the banking company are interested as directors, partners or managing agents or in the case of private companies as members 34,596.63 I 1,681,623 8 ix) Due from banking companies x) Classified investments a) Classified investments on which interest/profit has not been charged b) c) 2.386.107.553 t,884,s42,276 Provision on class'ified investments 680.053.62 Provision kept against investments classified as bad debts 287 ,365 ,711 I Amount credited to protit/Rent/Compensation suspense account 5s6,8 l 1,579 130,s64,620 864,360,77 4 440,7 I 4,085 Furniture and fixture 863,1 10.27s Macl.rineries and equipment Motor vehicle Computer and peripheral s96,546,8 68 628,868,788 438,721.438 d) 1 436.772.84s 06,877,300 xi) Cumulative amount of written off investments Ooenins Balance ' a-' AmoLrnt written off during the period Amount reahzed against investments previously written The amount of written ofT / off classifled investments for which law suits have been t'iled Fixed Assets including Premises (Annexure-C) Tangible assets: Cost Right ofuse assets 1 Automated Teller Machine (ATM) Books and journals 124.620,742 I 514,733,599 454,6 87,832 ,7 13,342,47 5 1,500.008,264 129,458,960 94,958,3 88 23,3 3 8,00s 805.000 805.000 3,942,617,919 3,241,387,715 ,684 ,98 | ,47 0 14.252.47 I 1,193,010,333 Less: Accumulated depreciation Adjustrnent of assets Written Dovyn Value 1 _____22!t;!3pJJ_ -______2J4&JZJ!2 Intangible assets: Cosl Softrvare 234 Less: Amortization \Yritten Dolvn Value I 13,985"240 I 13,985,240 "792.35 103,262,256 _______!16$J95_ 86,8 53,23 0 27,132,010 _2;ZpJt{L2_ __-__2{75S!9J92_ Total Written Down Value *Right of use Assets (RoU) are measured at cost lease liabilities | 234,792,351 less any accumulated depreciation and adjusted 44 for any measurement of
45. Hoda Vasi Chowdhury & Co 8.1 f."",,,-l Amount in Taha 2021 ll 2020 Maturity grouping of Fixed Assets including Premises Payable on demand Up to Over I month I month but within 3 months t9,19s,498 278,9s4,621 298,794,915 261,125,933 3 Over 3 months but within 1 year Over 1 year but within 5 years 457,555,417 399,87 1,548 780,648,226 Over 5 years 518.720.015 682,232,146 4s3.125. I 44 __2gt2Jt{12_ ___2U5iAn22Other assets Income generating other assets Profit Receivable (Note-9.2) 268,373,416 1,121,824,59{ Non Incomc Generating Stock ofStationery, printing, and materials etc.(valued at cost) 36,176,942 Stamps (valued at cost) 1,895,440 239,626,265 Advance rent Security deposit*x Tax deducted at source (AIT) Other Prepayments Advance to suppliers* Receivable from Bangl4desh Bank for Sanchay Patra payment (Note-9.3) Advance tar paid Receivable from provident fund account Balance with First Security Islami Capital & Investment Limited I 5,069,53 30,594,867 1,s06,630 246"457,670 14,979,531 396,426,507 1 294,201,464 12,78t,014 t2.045,246 22,728,t27 24,043,287 2,300,490,988 13 1,365,033 59,80 I ,21 4321 2,971 Balance with Prime Bank Investment Limited Balance with Lanka Bangla Securities [.irnited Other Receivables 12,074,444 61.294 16.17 s.279 2,971,891,277 a- ,1,J96,715,871 5 2,106,189,486 6,366,830 48.1 9s.434 3,05{,668,s38 3,t23,041,954 x Advance to supplier includes partial amount paid to vendor on account ofpurchasrng offurniture & fixture and interior dccoration to be finalized and hence not yet transferred to fixed assets. ** Security Deposit includes Taka 1.41 crore which was deducted by Bangladesh Bank during 2017 i't four installments for failure to disburse 5o% loan to agriculture sector oftotal outstanding investments . 9.r General Account Un-reconciled entries oflnter Branch Transactions in Bangladesh as on Age i) ii) iii) 31 December 2021 Up to 3 months Over 3 months but not more than 6 months More tharr 6 rnonths Total (i+ii+iii) Un-reconcrled entries of Inter Branch Transactions Outside Bangladesh as on iv) v) vi) 3 1 December 202 I Up to 3 months Over 3 months but not more than 6 months More than 6 montl'rs Total (iv+v+vi) Grand Total (l to vr) 9.2 Prolit Receivable Placement to Other Bank-MTDR Placement to Islamic Investment Bond 7) 86,024,549 Profit on lnvestnlent r.332.658.795 5t 7 Sq? 5,565,000 3.141 ,25 0 l 90,290,8 r 9 _J&1&tf4t_ ____268;114J5_ 9.3 Advance tax paid Balance at the beginnrng ofthe year Add: addition during the period 2,1 06,1 89,486 905,1 2 1,34 Less: adjustment during the period 2,1 06, 1 89,486 1 710,819,839 2,300,490,988 45 2,106,1 89,186
46. Hoda Vasi Chowdhury & Co Amount in Taka 2021 t0 t-------------- Non-banking assets I -l | 2020 r---------I No non-banking asset is under the possession of the Bank as per BRPD circular no. 14 dated 25 June 2003 which acquired as claims. Global Islami Bank Limited did not acquire any such asset till 3 I December 202 L l1 is Placement from bank and other financial institutions ln Bangladesh Note- Outsidc Bangladesh Note-112 219,871,604 11.1 I,382,375,1 82 _____JU,81J,69!_ ______-_IJ-E2JZ5J!1 I I.1 In Bangladesh Refinance against COVID ofBangladesh Bank Short term borrowing 136,540,29r 64,114,451 1,000,000,000 I{efinance against Ten Taka account from Bangladesh Bank Stimulas fund liom Bangladesh Bank Refinance against Woman Enterprise Ioan from Bangladesh Bank Refinance against EDF loan from Bangladesh Bank 31 ,250 72.880,669 67 ,949,406 6,675,000 3, I 75,000 242.173.812 8,706,907 _____lJ2;1149!_ ______1J!4ZaL82_ 11.2 Outside Bangladesh |------__-_---l [------I I 11.3 Security against borro\yings from other banks, financial institutions and agents Secured Unsecured 219 I I 219,871,601 11.1 75.182 1,382,375,1 82 Maturity grouping of borrowings from other banks, financial institutions and agents Payadte on clemand I month I rrronth but within 3 motrths Over 3 months but within I year Over I year but within 5 years Up to r,000,000,000 Over 6,675,000 3,206,250 204,489,697 l 36,995, I 20 8.706.907 242,t73.812 Over 5 years ______2I9,EZ!,6!L ______-Ll!2Jzs,1!2_ As at the reporling date ofthese financial statements, the Bank had no assets pledged as security except the Balance with Bangladesh Bank (local & foreign currency) against liability ofrefinance lacility availed from Bangladesh Bank under the Agro based industries financing, Green industries financing, Small & Medium Enterprising Financing, 10 Taka Account Fund and Export Development Fund by the Bank. 12 Deposits and other accounts Mudaraba Savings Deposits (12. 1) Mudaraba Term Deposits (12.2) Other Mudaraba Deposits (12.3) 6.s06.906.t27 4,679,812,154 10s,282,008,9 i 4 98,021 ,9s0,724 2,144,27 5 6,549,212 Al-Wadiah Current Deposit & Other Accounts (12.4) Bills Payable (12.5) 12.1 5 __--))1,8954624_ ___--1!61421!2,q!5_ 6,506.906,127 4,679,812,7 54 6,506,906,127 4,679,812,"/s4 Mudaraba Term Deposits 5,646.461 .032 Scheme deposit Othcr Mudaraba Dcposits Othcr Mr-rdaraba Deposits 4,854.962,882 64,250,663.137 61,944"872,028 5.3 84.87 8.745 31,228,1 15,814 98.027,950,724 3 r t2.4 3,620,030,873 418.95r"059 Mudaraba Savings Dcposils Special Notice Deposit (SND) account Term deposit/ Mudaraba term deposit account 12.3 .7 51 556.872 General Deposits 12.2 ,453.125 0s.282.008.91 4 6.s49.212 ) 1Al )1\ 6,549,212 2,744,215 ) ))o {)a o(n 1,721,303.269 199,8r9,1 t6 126,249.5t3 AI-Wadiah Current Deposit & Other Accounts Current/ Al-wadeeah deposits Deposit margin on letter of credit Deposit rnargin on letter of guarantee 56,82s,2s3 46 4 s,0 s 8,9 87
47. Hoda Vasi Chowdhury & Co Amount in Tal<a 2o2t Deposit margin on pay order Profit payable on deposit Withholding VAT/Tax/Excise duty payable to Government authority 300,000 2.4 12.580.08s 209,1,74,352 Foreign currency deposit Security deposit and others 12.5 | | 2o2o 300,000 1,335,591 ,032 207 ,251,09s 68,440,588 6.456.407 59,737,628 124,539,349 5,453,1 25,751 3,620,030,873 5s6,86s, l 7 l 418,951,0s9 27 Bills Payable Payable inside Bangladesh Payment Order Issued Dernand Drafl Payable 7.053 556,872,224 __-__JJ1_,8054622?2_ 12.6 1 18,951,059 _____uff12$9,0!5_ Savings bank/Mudaraba savings deposits GIB Mudaraba GIB Mudaraba CIB Mudaraba CIB Mudaraba GIB Mudaraba CIB Mudaraba GIB Mudaraba Savings Account Savings (Staft) 6,201,987 ,045 4,439,263,510 88,694,427 66,024,17 6 9,664,228 44,041,844 6,253,076 26,683,370 Freshers Savings Perlecr Sar ings Farmers Savings 8.1 62, I 58 Salary Savings 58,064,80s Queen Slvings 22,350,496 CIB Mudaraba Junior Savings 7,821,027 47 ,004,364 8,672,783 19,862,718 32,615,959 GIB Mudaraba Swadesh Savinss 58.227.730 4 1 .325.1 65 6,506,906.127 ___1fr2ir2fi!_ Sector-rvise breal<-up of deposits and other accounts GoverryUent Deposit tiorl banks Other public Foreign currency Priyate 8,27 6,7 59,058 4,683.101,364 7,921,083,181 l 1,088,s77"038 33,233,368, I 09 31,894,282,102 68,440,588 59.137.628 68"305.811.293 59.023.1 90.953 :_1U,!!54!223E_ 12.8 Deposit from banks inside Bangladesh Bangladesh Development Bank Limited BRAC Bank Limited First Security Islami Bank Lirnited lslami Bank Bangladesh Limited National Credit and Commerce Bank Limited Agrani Bank Limited Sonali Bank Limited Trust Bank Limited .lanata Bank Limited Eastern Bank Lintited Rajshahi Krishi Unnayan Bank Union Bank Ltd National Bank Limited Social Islami Bank Limited I{upali Bank Limited NRB Bank Lirnited Payablc on demand and time deposits __J!Jt2lg2$i 0,000,000 282,000,000 1,000,000 500,334 4,895.919,528 5,064,5 I 0,464 2 1 810 249,763,021 2s0,000,000 600,106,666 40,056,787 600,276.250 202,857 200,200 700,104,316 500,000,000 60,000,000 7,204,283 1 00,000,000 1,s00,000,000 7,034.075 1,500,423,423 56,936,705 1,033,420,500 7 450.000.000 200,000,000 :122!q8]JL ____[qE&522,A$_ a) Demand deposits ('urrentr AI-wadecah deposits Mudaraba Savings Deposits (9%) Foreign currency deposits Security deposit and others Sundry deposits Bills payable 2.229,529,950 \,721,303,269 585,62.1,55 I 421,183,148 68,440,588 59,737,628 276,456,407 12,360,628,820 t24,s39,349 1.717 ,194,902 556.872.224 4t 8.951.059 ffi ____!!JZd!X511_ _____ll!2p!9J5s_ SL-27 \#
48. Hoda Vasi Chowdhury & Co Amount in Taka 2021 | 2020 b) Time deposits Mudaraba savings deposits (91%) Term deposit/ Mudaraba term deposit account Special Notice Deposit (SND) account Deposits under schemes 12.10 ,921 ,284 "57 6 4,258.629,606 5,138,284,999 61"944,872"028 4.854.962.882 5 58,468, I 03,454 32.200.239.65 8 3t.228.1 15.814 101,721,912,681 102,286,s80,330 117,805,462,229 106,749,489,685 Maturity wisc classification of Deposits are as under b) Maturity analysis of deposits from bank Repayable on demand 1, I 50,94s 1.61 1.187 Within I rnonth 2,5 8,789,883 3,6 1 Over I rronths but not more than 3 months Over 3 months but not more than 1 year Over I year but not more than 5 years Over 5 years but not more than l0 years 5,075,40s,555 7, I 04,965,850 7 265,'736.797 0,000,000 372,000,000 Over 10 years I 1,088,577,037 _______zJ2UEJ_q_r b) Maturity analysis df customer deposits Repayable on demand Within I rnonth Over I months but not more than 3 months Over 3 months but not more than 1 year Or er-l vcar but not more than 5 ycars t-Over 5 years but not more than 10 years 2,044,006,5t6 21,028,688,203 28,764,964,222 41,793,482,660 3,9 1 3,006,560 2,301,900.11s 1 Over I 0 years 3ti,330.77 r l 09,881,379,017 | ,779,429,7 10 18,306,728,606 22,865,219,515 36,383,721,951 14,288.502,1 55 2,003,941,486 33.369.225 9s,660,9 r 2,618 __ill,!!5!@22!_ ____1!!J{14!!85_ t3 Other Liabilities Provision for Investment Special general provision-COVID- 1 9 Pror isiorr lor Ofl-Balance Sheet itenrs Provisions on Investment in Securities Provision for other Assets Provision for Taxation Profit Suspense Account Provision for Gratuity Payable for {note l3.l (a,b&c)} {note 13 I (d)} {note 13 I (e)} {note 13.1 (0} {note 13.1 (g)} (Note 13.3) {note 13.2} sanchay patra r ,61 l 0,048,460 39,453,660 54,237,20s 1,10,8 I 2,760 514)0 1)J I 9,953,800 20,773,188 3,275,354,829 2.94\,157 ,;83 i 1,579 330,564,620 556,8 37.950.01 lnter branch balance Provision for Start-up lund* Leased Liabilities as per IFRS - 16** r,393, l 54,s9s 5 60,650,01s ,)st t0,292,864 989 zt,+se (Note 2, 1. l4) Expenditure and other payable 1.160.134.17 4 I 26.0 I 0.650 ____J_etafi12_ I ,121,7 61 ,503 I 8,43 5,4s3 _______09925u0!_ *Start-up fund has created as per SMESPD circular no.-04 dated April 26,2021 @) I % olnet profil ** As per note2.2, in l3.l accordance with IFRS-16, the Bank has recognised the lease liabilities. Provision for Investments including Bad & Doubtful Investments (n) Current Ycar Provision Unclassifi ed lnvestmcnts lbr Investments 905,7 62.091 Special mention account Special generaJ provision-COVID- I 9 Substadard 55,647,1 0 139,453,660 t40,812,7 60 32,069,776 Doubtful 360,6 Bad & Loss Total (a) 287.365.771 1 8,074 1,719,502,120 48 900,734,649 24,232,148 I 52,042,115 277 "853,430 l 06,877,100 I,533,967,355
49. Hoda Vasi Chowdhury & Co Amount in 'I'al<a 2021 I | 2020 (b) Provision on Classified Investment Provision held at the beginning ofthe year 436,772,845 243,280,776 Add: Addition during the year Less: Adjustrnent during the year 6t3,158922 17 6 i86 07 Provision held at the end of the year 680,053,621 436,712,84s (c) General Provision on Unclassified Investment Provision held at the beginning ofthe year 956,38 I ,750 797,567,849 Add: Addition during the year Less: Adjustment during the year Provision held at the end of thc year l 58,81 3,90 r 9lr) 929,994,839 956,38 r ,7s0 (d) Special gcneral provision-COVID-19 Provision held at the beginning ofthe year Add: Addition during the year 140.8 12.760 140,S Less: Adjustment during the year Provision held at the end of the yenr Total Provision for Investments 139,453,660 140,812,760 1,749,502,120 1,533,967,355 53,420.224 79.87 4,263 (c) General Provision on Off-Balance Shect items Provision held at the beginning ofthe year Add: Addition during the year Less. Adjustment durirlg the year 8r6,98I 26.454.0 Provision held at the end of the year Total Provision for Investments & Off-Balance Sheet 54,237,205 53,420,224 ______1,E0q,212i25_ _____l,sjizJlziz2_ (f) Provisions on Investment in Securities Provision held at thc beginning olthe year Add. Addition drrring tlre Vear l Lcsslld.ruslmenr d,,iing rh. y.u, I'rovision held at the end of the year l 9,95t,800 (g) Provision 12,7;0 1.359.1 9,953,800 for other Assets Provision held at the beginning ofthe year Add. Addition during the year Less: Adjustment during the year Provision held at the end of the year 13.2 20,773, Profit Suspense Account 330.s64.620 226.246.959 Provision for Taxation Provision lbr Current tax Balance at the beginning of the year Add: Addition during the year 172.496.9t8 158.067.702 _______t56-8[5?9_ 330.564.620 2,94t,157 ,983 1.139.7 l 0.520 2,220,257,100 Less: Ad.justment during the year 720,900,283 .513.67 4 Balance at thc cnd of the year 13.3(a) 88 20,773,1 88 Balance at the beginning ofthe year Alrount transferred to suspense account during the year Amount recovered lrom suspense account during the year Amount writtsn ot17 waived during the year Balance at the cnd ol the year l3.J r :i475!54,q22_ _____2J4,r5Zp!3 Provision for Current Tax made during the period Net Profit belbre tax and provision Items to be considered separately Gain on Goverrlnent Securities Dividend frorn prel'erance share 2.683.106.3 r 8 1.900.765.988 283.55 8,8 82 1,033,475 2.475.050 I,033,175 286 r 33,932 230,228,601 203,998,3 84 Add: Lradrnissible cxpenses Accounting depreciation Perquisrties u/s 30(e) ofthe Ordinance Depreciation on Lease assets 86,304,046 73,3s032A 306,656,498 272,967,925 Profit on lease obligation 58,225,485 51,010,5s4 Entenainment expenses I 49 3,588,237 7.024.999 695,002,873 608.352,182
50. Hoda Vasi Chowdhury & Co Amount in Taka 2o2r Less: Admissable expenses: Tax depreciation | | zozo 264,991,495 249,736,420 Office Rent Allowable entertainment expenses 177,29s,556 237,650,501 7.024.999 13.5 88 528,316,153 Total Taxable Income 1,801,013,181 _____2.818,7s2ff1_ lleads of income Income tax lnconre tax on Dividend from preferance 13.4 421,971,057 share Rate 40.00% 1,139,503,825 720,405.212 20.00% 206.695 495.0 I 0 Net Tax Payable ______1Jl2lI!,s2!_ Effective tax rate 42.48% ------J20p!!2u37.93'A Deferredtaxassets/liability Deferred tax has been calculated based on deductible/taxable temporary difTerence arising due to diff'erence in the carrying amount olthe assets and its tax base in accordance rvith the provision oflnternational Accounting Stanclarcl (tAS)12 'Income Taxes" Deferred tax assets/ liability is arrived at as follows: Carrying amount Particulars of balance sheet Taka Tax base Taxable temporary difference Ta I<a Ta ka Assets Fixed assets net of depreciation as on 2021 3 1 December t,241.196.020 Right of use assets l-ease obligation I,r33.718.052 Total 3,535,018.246 (92.046.878 0.333.242.898 1.1 1.160.134.174 ( 1,333,242,8981 33.7 1 8.052 1.160.134.17 4 l 18.d63.000 Assets Fixed assets net of dcpreciatiolt as ol.l 3 I Dece mber 2020 848,469,0s3 gRq s1t )o) (14t.062,239) lotal 848,469,053 989.s3 r .292 /L41,062,239\ Aonlicable tax rate Det'erred tax assets as on 40 3l December 2021 Def'erred tax assets as on 31 December 2020 14.3 13.361 33,07r,839 Def-errcd fax income accounted for durins the vear 13.5 Deferred tax asset Balance at rhe beginning ofthe vear Addition/(Deduction) during rhe vear 13.6 000/^ 47,385,200 14,3 r 3,161 68.106.138 3t,07 I,839 53.792.771 47,385,200 14.313.361 Status of income tax assessment Accountinq Year 20 Assessmerr 3 20 4 20 4-20 Year 5 Status Has been settled Application made to Ilieh Courl 2016 20 5-20 6 20 6-20 7 2017-2018 201'l 2018-20r9 Has been settled 20t8 2019-2020 2019 2020-2021 Appealed to Commissioner of Taxes (Anpcal) Aoneal Zone-02 Hearing going on rvith DCT 2020 2021-2022 Just submitted the retum 20 5 Has been settled Tribunal order received, relerence application to be made to Hon,bk HC 13.7 Maturity wise classification of other liabilities Payable on dentand Up to I month Over I month but within 3 rnontlrs 2,1 13,535,157 ].,821,075,302 1,7 53,8 I 3,93 Over 3 nronths brit within I year Over I year but within 5 years 1,517 ,562,7 52 1,403,05 1,144 1 1,052.288.3 58 101 \) \ '7) t Over 5 years 7,024,214,312 50 t.214,050,201 91 0,537,65 I 607 ,025.100 ffi w _____g{zq4!uq_
51. Hoda Vasi Chowdhury & Co Amount in 'Iaka 2021 I I zozo Capital 14 t4.l Authorized Capital: 20,000,000,000 2,000,000,000 ordinary shares ofTaka 10 each 12,000,000,000 Authorized capital is the maximum amount of share capital that the bank is authorized to issue to shareholders bv its memorandum & articles of association. Issued, Subscribed and Paid up Capital The issued share capital ofthe Banh is the total nominal value ofthe shares ofthe Bank rvhiclr have been issued to the shareholders and remaining outstanding as on the reporting date 190"875,000 and 467,500,000 ordinary shares ofTaka l0 each Bonus share 24,543,750 and 23,375,000 Ordinary Shares ofTk I 0 cach 4,908.750,000 4,67s,000,000 245.437 .500 233.750.000 5,t 54,187,500 4,908,750,000 Movement of share capital f-N". Balance at the beginning the year of 4c)0.875.000 Closing at the end ofthe period [4.4 ll 4 e08.750,000 24"s43.7s011 Add: Bonus slrares issued 515,41 8,750 24s.437.s00 5,15.t,187,500 "f .hrr* _l Ar-r,t I f 467 s00 000 4,675,000.000 23.375.000 233.7 50 490,875,000 4,908,750,000 Pcrcentage of shareholdings at the closing date 3I 30 Decembcr 2021 Particultrs Amount Sponsors (NRB) December 2020 Amounl /o l.450.674.380 28.1s% r,238,737,s00 25.24% 48.5 10.000 0.94% 46,200,000 0 94% Financial institutions Foreign investors Non-Resident Bangladeshi 3eneral public )thers 3.655.003. l 20 s,1flJ_q2,s90 14.5 Shareholding range on the basis of shareholdings 70.91% 3.623.8 I 2.500 73.82% ___]!9&%_ ____t2!!J!!J!!_ t00.00% as at 31 December 202I Number of shareholders iharehnlding range Shareholding No. of shares Perccntage Less than 500 500- 5.000 s,00r - 10,000 I 0,001 - 20,000 20,00r - 30,000 30,001 - 40,000 40,001 - 50,000 s0,001 - 100,000 00,001 - r,000,000 Jvcr 1,000,000 27 00 27.00 I 4.6 Dircctors' No JNamc shareholding as at 3l 5r5,4t8,750 100% ___11s,11!J!A_ December 2021 of the directors Mr. Nizam Chowdhurv Status Closing position 24.255.000 Mrs. Maimuna Khanam Dr. Mohammed F Mr. Arif Ahmed representing Hasan Abasan (Pvt.) Lirnited 1 9,627,500 I 9,387,02 I Percrntage of s ha reholdi ng
52. Hoda Vasi Chowdhury & Co Amount in Taka Note(s) 5 6 Mrs. Farzana Begum representing Shah Amanat Prakritik Gas Limited Mr. Shahidul Alam reoresentin g Fatehabad Farm Limited 2020 202'.1 Director 24,406,s94 4.735% Director l 9.404.000 3.76504 7 Mr. Subrata Kumar Bhownick representing Karnaphuli Prakritik Gas Limited Director t9"233,377 3 732% B Mr. Md. Mostan Billah Adil rensentins WESCO Limited Director ,4 ?55 000 4.7 06o/n 9 Ms. Shahana Ferdous renresenting Poftman Cements Limited Dircctor 35.521 .44'7 6.892% Drrector 19.627.s00 3.808% l0 Mr. Mohammad Shah.jahan Meah ll Mr. Bourhanul Hassan Chowdhr.rry renresentins Modern Pronerties Limited Director 2t .799.t81 4 229o/n t2 Ms. Rokea Yesmin representing Prasad Paradise Resorts Limited Director 40.020.750 7.765% t3 Mr. Hasan Mansur representing Unitex Tvre Limited Director t9.293.750 3.743% Director 40.221.924 1.804% Director 19,233,376 3.731% t4 l5 Mr. Wahidul Alam Seth representing Global Tra$ing Corporation Linrited Mr. Mohammed Oheidul Alam representing Bangladesh Petro Chernicals Limited Independent l6 Mr Mohammed Kutub llddowllah l1 n,,tr. 18 Dr. sh.u 0 000% Director Independent Salimullah 0.000% Director lndependent Md. Nizamul I'{oque Bhuiyan 0.000% Director lndependent l9 Mr. Ahmed Muktadir Arif 0.000% Director 72-190/" 372,057,358 14.7 Capital adequacy ratio as per BASEL - III As per Section 13 of the Bank Companies Act, 1991 (Amended upto 2018) and instnrctions contarned in BRPD Circular LetterNo. lidatedl4August2008,BRPDCrrcularNo. l0dated l0March20l0,BRPDCircularNo.35dated29Decernber 2010, BRPD"&" Circular No. 18 dated 2l December 2014 [Guidelines on Risk Based capital Adequacy (Revised Regulatory Capital Framework for banks rn"&" line with Basel III)1, the risk based capital (eligible regulatory capital) of the Bank as on 3l December 2021 stood at Taka 8,837,057,880 against the risk based capital requirement ofTaka 10,365,270,657. As a result, therc was a capital shortfall of Taka ( i ,528,21 3,391) in risk based capital adequacy as on 3 I December 202 L As per Section l3(2) of the Bank Companies Act, 1991 (Amended upto 2018) ar.rd instructions contained in BRPD Circular Letter No. I 1 dated 14 August 2008, the paid-up share capital, statutory reserve and retained earnings should be at least Taka 4,000 rnillion in which, the paid-up share capital should be at lease Taka 2,000 million. Against that, the paid-up share capital, statutory reserve and retained earnings of the Bank was Taka 7,760,756,762. Amount in l'aka 2021 Common Equitl I I 2020 Tier-l (Going-(loncern Capital) Fully paid up capital Non-repayable share premium account Statutory reserve Note: 14.2 Note:15 s,1 s4,1 87,500 I ,6 I 6, 1 83,345 4.908.750,000 1, r 30,977,828 General resen,e Retained earnings Note:17 990,385,;1 i 660.27 t .419 Dividend equalization account Minority intcrest rn subsidiaries Share money deposit - Non-cumulative irrcdeemable preference share '7,760,756,762 52 6,699,999,24'.7
53. Hoda Vasi Chowdhury & Co Amount in Taka 2021 Regulatory adiustments from Tier - ll 2020 I Shortfall in provision required against non performing loan Shortfall in provision required against investment in share Deferred tar assets 47.385.200 t4,313,361 47,385,200 14,313,36 t Goodwill and all other Intangible Assets Reciprocal Crossholdings in the CET-l Capital ofBanking, Financial and Any investment exceeding the approved limit under section 26 ka(l) of Iuvestments in subsidiaries which are not consolidated (50% ofInvestment) Others (if any) Total deduction 'l'otal Common Equity Tier-I Capital (a) Additional Tier-I Capital Total additional Tier-l capital t---*---_IT---_-----ll Total Tier-ICapital 7,',l13,371,562 6,68s,68s,886 Amount in Taka 202t I | 2020 Tier-2 Capital (Gone-Concern Capital) General provision on unclassified loans and General provision on offbalance sheet advances exposure Note - Note 13.1 (c - 13. I &d) "069,448,499 54,237,205 t,097 ,194,s10 51 -tro ) ),1 1,123,685,704 1,150,614,731 | (e.) Revaluation Reserves ut on 3l December, 2Ol4 (50% of Fixed Assets and Securities & I 0% of Equities) All Other preference shares Subordinated debt/Instruments issued by the banks that meet the quali$ing Others (ifany item approved by Bangladesh Bank) Rcgulatorfddj ustments Revaluation Reserves fbr Fixed Assets, Securities & Equity Securities (fbllow Phase-in deductions as per Basel III Guide)ines) lnvestrnent in or'vn T-2 lnstrurnents/Shares (as per Para3.4.7 of Basel lll Reciprocal crossholdings in the T-2 Capital ofBanking, Financial and Any investment exceeding the appro\,ed limit under section 26 ka(1) of Investments in subsidiaries which are not consolidated (50% oflnvestment) Others if any 'lotal admrssimible Tier - 2 capital (b) ::=J44,0!51!l_ :____-lJ59JrlJiL Total rcgulatory capital (a+b) _______q,8!2,052205_ Total assets including off balance sheet exposures __-___1,!t6J!!f2!= Total Risk weighted assets (RWA) *--_12!,022,!2!Jll 82,922,165,256 73,556,508,955 Required capital based on risk weighted assets (f2.5% of RWA) 10,365,270,657 137.987.145.171 Shortfall/Surplus Capital -_Gtszq,2!qu __!;53262222L Capital to risk weighted assels ratio (CRAR) Common cquity Ticr-I to risk weighted Tier-I crpital to risk weiglrtcd assets Tier-ll capital to risl< wcighted assets 10.660.6 10.650 9.30Yo 9.09% 9,30'h 9.09.h 1.360/,' 1.56'A ratio ratio assets 9,194,563,619 ratio Breal<down of gross Risk-Weightcd Assets (RWA) in the various catcgories of risk-weights Risk Weishts (Both B/S & Off-B/S Current Year Prirrci pal Previous Ycar Risk ucightcd 21.626,\53,130 Risk rveighted assel Principal 3 asset 0% \6.152.571.257 20% 50% 23.069.s68.289 4.6t3"913.6s7.73 10.697.069.347 9,924,87 4,37 3 s.761.,600.000 100% 31.160.434.574 5.348.534.673 37.160.434.574 20.204.338.219 20.204.200.000 Total 87,019,643,466 47.122.882.905 90,570,r 94,542 33,728,700,000 53 8.8 14,82 8,82 1 7.762.900.000
54. Hoda Vasi Chowdhury & Co Amount in Taka 2021 t5 | I zozo Statutory reservc Opening balance t Add: Addition dunng the period 770,181,939 360,795,889 1,130,977,828 ,130,977,828 485.205.5 I 7 r,616,183,34s As per section 24(1) ofthe Bank Companies Act, 1991, an amount equivalent lo 20'Yo profrl before taxes for the year has been transferred to the statutory reserve fund l6 Other reserve a) General reserve Add. additional/adjustment made this period Sub Total (i) b) share premium c) investment loss offsetting reserve d) exchange equalization account e) asset revuluation reserve (16.1) (if any) f) dividend equalization Sub Total (ii) Grand Total (i+ii) 16.1 Asset revuluation reserve Opening balance i Addition/(adjustment) durin g the period Closing balance Retained earnings 17 Balance on 1 January AdditSm during the year Transfer to statutory reserve Transfer to start-up fund Cash dividend payable lssue ofbonrrs shares |,419 235,823,789 l ,3 l 9,3 88,904 I ,029,286,3 83 660,27 48s,20s,5 l 3, I 360,795,889 I7 t0,292,864 93,889 245.137 ,500 245.437 .500 233.7 5 _____ j2!,1!52-lz_ I8 18. 660,271,419 Contiugent liabilities l Acceptances & endorscments Back to back bills (Foreign) Back to back bills (Local) Back to back bills (EPZ) Cash bills deferred(Foreign) 30, I 44,083 26,303,114 40,289,053 25,17I,486 (7,ele) 3,5 88,412 6,894,408 Cash bills def-erred(Local) 14.483.937 91,803,562 Less: Margin 6s3.1 s0.000 ___rvu+ 9r,803,s62 18.2 708,220,012 Letters of guarantee Letter of guarantee (Local) Counter guarantee (Local) 143,7 45,718 70,387 124,57 6,195 68,243,666 "295 Perfbnnance Guarantee 4.041 .352.983 3.95 l. I 67.582 4,255,486,000 s6 R)5 )S1 4,r 43,987,443 Less: Margin 4198S60J48 45.05 8.98 7 ____--_4J9&9.2!/&_ Nlonev for which the bank is contingently liable in respect of guarantees given favoring Dircctors Government Banks and other financial institutions Others 54 4"255.4 4.143.987.443 4,255,486,000 4,143,987.443
55. Hoda Vasi Chowdhury & Co Amount in Taka 18.3 2021 lrrevocable Ietters of credit (including back to back bill) Letter ol credit sight (Foreign) Letter ofcredit sight (local) | 450,135,373 22,062,9t4 6,087,087 3,087,s 0 ( 1 0,303) 27,070,217 36,59 1,8;5 26.680.t26 l,086,19s,070 489,8 I 4,758 199.819.1 r6 _________!!!J21955_ 126,219.513 _j{J,s!5215_ Particulars of profit and loss account Income: Profit on Investment lncome from Investment in securities Dividerrd income Commission, Exchange and Brokerage Other operating income Erpenses: (Note-20) 13.029,982,t74 (Note-22) (Note-22) 209,112,025 I 2.048,740,1 65 996,s65"872 2,1 I 8,056 975,000 59,592,117 69.465,263 33,406. I 40 63.668.406 t3,433,067,456 13,180,157,762 8,013,886,814 1,789,429,413 9,089,482,06 l 409,7s9,806 397,6t2,362 Q'Jote-23) Q'{ote-24) r i Profit paid on Deposits Administrative expenses Q"lote-2 I ) Other operating expenses Depreciation on banking assets 1,3 ProIftY (Loss) bcfore Provision _2qEJJ96rU_ 1 5,33 1,053 416.966.298 536.885.1 05 10,749,961,138 t1,279,397,774 _______1p!!l{5p!L Investment incomc Profit on Bai lrlurabaha continuous investrneuts Prollt orr Bai Muajjul conlirruous investrncnts I I.n6,456.344 10,281,766.7 t5 152.302,824 149.608.7 43 Service charge on Quard Mode Proflt on Bai Murabaha (lmport) Profrt on Investment in Murabaha (Export bill) Irrollt on Bai Murabaha Forced Investment Prollt Prollt Proflt Profit Profit Profit Profit 57 sgo 60,656 I3,91 7,95 l 5 689,243, l 58 on Bai Murabaha term invcstments on Bai Mua.llal term investments on Staff investment on HPSM term investment on lnvestment against Deposit with Financial Institutions 3,028,284 643,488,686 6,033,45 I s.532,142 46"67 5,297 42,328,329 0,957,83 1 ).5,935,778 1 9,964,417 I 624,418,970 270,850,683 4,s08,1 82 564,007,23s 3 or Investment against nostro account t 1,1 65,823 7,022.464 on Investment with other Banks Income From Cards 20.7 5 19,644,892 Less. Margin 20 zozn 984,660,1 38 Back to back letter of credit (Foreign) Letter of credit (EPZ) Back to back letter of credit (EPZ) Back to back letter ofcredit (Local) Letter of credit deferred (Foreign) 19 I t7,409,514 .119.114 6.261.554 13,029,982,174 12s48J40,rfi 5 Profit on Investment dcrived from the fund deployed Insidc Bangladcsh Mudaraba deposits Other deposits/Fund 10,912,610,071 ).t 13,029,982,174 r 9,888 q)O )1-7 9,890,8 ) 1\1 17.372.103 r 2,048,710,16s Outside Bangladesh 2t :_J],A42gAlL I)rofit paid on deposits Profit paid on deposits* (2 I . I ) Profit paid on borrowings (2 1 .2) 7 ,940,41 t.119 73.47 5.064 --_-__q,q:UJ1g&s 8,945,00 1,692 144.480.369 _______EJ_LL886,814_ _____l-089.482.061_ 2t.t Profit paid on dcposits* Profit paid on Mudarabah Profit paid on foreign currency deposit account 7.940.393.721 18,028 _ 55 7 .9 40 ,4tt ,7 49 8,944.9r5.118 _!!ll1 ___EJ45J!1 692_
56. Hoda Vasi Chowdhury & Co Amount in Taka 2021 21.2 Profit paid on borrowings Profit expenses oflease liabilities )) 15"249,580 (as per IFRS-16) ____JL475t5!_ 5,330,000 329,889,082 382,641,349 1 l11 t)< I I 9"565 39,074,330 [)ividend incorle 1,033,475 2,475,05 0 684.009 283.6s 8.882 __2_LAJE7,!25_ 998,683,928 1,026,592 30,9 1 4,603 Commission, exchange and brokerage Comnrission on L/Cs Commission on bills and remiltance Commrssion on letter of crcdit Exchange earnings 5,584,04 1 22,917,755 I Commission on others Cain on revaluation liom loreign currency 1 2,411 ,710 8,963,3 13 13382,341 3,398.34 1 3,235,549 r66,159 1 3,399,839 59,592,117 I ))1 llt 69,065,263 Other operating Incomc Postage, Telex, SWIFT Gain on sale ofllxed & REUTERS assets Other fee and charges (Note-24.1) a- 4,396,4s9 1,322,3t0 2,898, s 96 .371 60.769.8 l 0 127 ,687 ________ 1J3,10i&q_ _______!1,0!!l!6_ Other fec and Chargcs lncome from ATM Operation 9,311,1l5 7,882.340 Charges on GIB cards 3,203,3 82 I Rent receipts- Iocker Account maintenance 6I 0,000 51.623,782 1'ee Service and other charges l"liscellaneous income ,< 144,480,369 53,923.887 Cain on salc of share 24.1 144,480"369 Income from investment in shares/securities lncomc from Investment in Goyt. SUKUK Bond 24 2020 58,225,48s Income fiom Investment in Bond Income from Investment in Bangladesh Bank bills Income lrom Investment in coupor.r 23 il Profit paid on borrowings l ,6 I 5 "814,225 589,000 3 6.898.965 I 3.525.280 9,597 8.3 I 9.495 ____Jn,6B7pJ_ 60,769,8I 0 Salaries and allowances Basic pay 44 1,503"57 I I{ouse rent )i5 ir5 lleclical allowances Allowances Bonus Bank's contribution to provident fund Rqq 65,8 l 4,003 231,797 .828 54,5 14,700 126.7 54,t t8 243,919,952 139,828,229 43,3t3,702 Consolidated 107.519,226 Leave encashrnent salary 3,086,75 I Gratuily 49,691 ,667 Group lile insurance premiun.r 1,466,640 I Arrcar salary Salary to casual ernployees 365,87 0,467 g6R t7r 73,39t,182 83"s64,8 3 1 5 5,833, 1 03 44,344,496 1,953,828 3 1,3 I 8,589 1.2?-8"2,9() 2,7 | t ,633 62.981.437 *_]115p55,082_ _-___l!52{]lll_ 76 Rent, taxes, iusurAnces, electricity etc. Rent. rates & taxes 69,77 0.366 lnsurance 7 Cas. 27 \ ilter. electricrty & ligltting. etc. 6,7 t0 "533 46.954,565 72,436,353 63,2.86,84 t 33.5 I 2.082 ___!2i,{l5l6s= ____:-_Ja}$tt_ Legal expenses Legal Fees & Charge Other Legal Expenses 7,8s8,2 l 4 4, I 3 1,030 ::!p!2!4r 56 380,66 i | .144.47 1 ___rdz5Jll
57. Hoda Vasi Chowdhury & Co Amount in Tal<a 28 Postfl ge, stamps, telecommunication etc, 9,275,t33 Postage Data communication Telegram, Fax, Telex & Internet charge 3 6,9r6,335 19,294,334 1,340,1 87 500 3 8,606 554,827 570,527 1 71q 691 Telephone charges Mobile phone charges 3.108.77 4 -______2)J2fr5_ Stationery, printings, advertisements etc. 6,284,666 Table Stationery Printing Stationery 5.051 ,424 10,474,n1 -4!,asp!94,268,888 Secunty Stationery 5.56t r 6.302.003 _-_______!1.E15JZ!_ 64 2.57 5,618 4,185,944 Computer Stationery Publicity and Adverlisement ,7 3,394"797 t7 .528.7 t7 __l4Jl!J2L Chicf executivc's salary & fees Basic Salary Allowances Bonus 3l 6,953,000 s,865,000 5,424,006 3,213.800 2,0 I 2,000 l 5,590,806 13,742,003 2.367,200 950,400 Directors' fees & expehses Directors' Fee 161,380 77,022 5.824.376 4.1 78.285 Meeting Expenses Directors travelling expenses 8,352,956 32 5,8 6s,003 Sharij! supervisory conrmittee's fecs & _ 5,205,707 expenses Shariah Council Meeting Expenses I 255. I 90,000 l0 _____l_2!J!0 *___255J!L Auditors' fees Auditors Fees 3.1 Charges on invrstment losses J5 Depreciation & rcpairs of banh's assets _______lJ5ilq0_ --t!ff!.L a) Depreciation of Assets (Annexure-C) Furniture & Fixtures 65,s5 1,002 Office Equipment Computer & Network Equipment 61,466,156 62,929,659 52.663,700 9,996,93s Vehicles Right of use Assets (ROU)* 306,656,498 l l,060,978 Automated Teller Machine Books b) ss 101 )?, 64,281,007 r 8,034"989 )1) c)A-| cl)\ 12"083.492 107 175 Amortization of Assets (Annexure B) _ 16,409,026 4,339.189 536,885,1 05 476,966,298 Office Equipmcnt Office Funriture & Irixtures 7,812.903 3..158,617 Vehicles | Sollware-Core Banking c) ILcpair on Assets 566,43 0 179,132 .425.577 1.348.365 4,986,714 9,804,915 _______54662!J20_ ____4!|5J,AU_ x As per note 2. L 14, in accordance with IFRS depreciation is shor.vn above. 16. the Bank has recognized Right of use Assets (ROU) and rclatcd Zakrt expcnses Zakat Expenses 46,214.231 _---_l52Jl2tl_
58. Hoda Vasi Chowdhury & Co Amount in 'faka 2021 t/ ll Other expenses Petrol, Oil and Lubricants Entertainment 3,858,736 7,027,480 7,024.999 5,302,609 "397 ,504 2,612,055 8,423,677 2,410,970 7 ,710,772 13,588,237 Donation and Subscription Traveling and Conveyance Expenses on Training, Seminer & Workshop 9 Car expenses 37,810,790 Cornputer software maintenance 48, I 54,1 66 Expenses fbr corporate social responsibility SWIFT'Charge 2t,185,745 Service and other charges 24.7 0,631 23,83 9,040 ATM operation experlses 16,526,459 24,608,097 Wages to casual labour 452,460 28 5,85 0 Expenses fbr honorarium 43 5,000 4"83 l Holiday banking allowances Expenses for IPO Medical expenses Expenses for sponsorship Cash carrying charge Papers & Periodicals Business development 47 5,000 50,984,839 26,210 8,22t,309 lq1 trt ,. & Prornotion 1,98s,93 r 5,145,152 460,s47 4,742"856 2,259,821 2,407,285 t,206,725 699,050 6"289,622 40,857,882 293,3 I 8 7,420,142 90,433,271 GIB Card expenses Laurrtr],. Washing and Cleaning offixed 95,457,804 3, I 89,521 "993 8,3 50,705 Sccurity Service- Out-sourcing Branch Opening Expenses Loss on drsposal 7 t4 "725 "158 40,013,426 7,485,300 Unilbrm & Liveries Bank and NBFI Charges 8,320,020 ),zo))) 9,8 I 1,760 6,823,3 9,026,).33 6,679.865 t 8 0 5"153,945 asssts Loss on Disposal ol'Securitics Tax expenscs fbr the settlement of income year 201 5 & 201 t "79t ,473 47,691,919 7 Miscellaneous Expenses I 3,445,805 ____l!2t5e,!!!_ 38 2020 3 1.500.054 _______)21$2;A_ Provision for investment, off-Balance sheet and others Provision on classified investment Provision on unclassified investment Provision on olT-Balance Sheet Specral general provision-COVID-l 9 243,280,776 (17 6,386,07 7) (26,386,91l) 8l 6,931 (26,454.039) 1,359, l 00) t40,8t2,760 ( Provisions on Investment in Securities 15 8,8 13,90 1 9,953,800 20.773,188 l Other Provisions-Other Asset i1EJ3!_ -----_---_ I 6JE5j45ProvisionforotherassetsismadeaspertheinstructionsmadeintheBRPDcircularNo. 39 -2i7 Deferred tax Closing deferred tax asset Opening deferred tax asset Defcrred tax Income during the period 39(a) 14dated25June2001 Note-13.4 47 ,385,201 14,3 13,361 14,3 t3,361 68.I06.t38 _____GJ,0Z!,E40L _____5]J22JJJ* Tax cxprnscs Dcferred tax Current tax Nore- I 3.4 Note- l3.3 i1 ?o) f f (33,07 l ,840) 1.t39.710.520 ? 720,900.283 l,r 06,638,680 .{0 Earnings per share (EPS) [prcvious year's figure restatcdl Calculation of Earnings Per Share ----JJl$e],05!_ Note- 2.20 Net Profit after Tar 1,3 19.388,904 Number of Ordinary Sliares outstanding Earnings Per Sharc (EPS) [previous vear's figure restated] 515.418.750 2.56 Earnings per sl.rare has been calculated in accordance with IAS - 33: "Earnings Per Share (EPS)" 58 1.029,286,383 5 15,41 8,75 0 2.00
59. a Hoda Vasi Chowdhury & Co Amount in Taka 2021 40(a) 40(b) Net asset value (NAV) per share Net Assets Value (Banks') No. of Outstanding Share Net Asset Value (1llAV) Per Share [previous year's figure restated] 6.699.999.247 515.418.750 515.418.750 ____-____15.0!_ Net operating cash flows per share (NOCFPS): Net cash flows from operating activities No. of Outstanding Share (2,s92,808,483) 7,422.121 .73r 515,418.750 (s.03) 14.40 Receipt from other operating activities (Note-26) Postage & Telex Charge Recovery Other charges (except income from sale offixed assets) 4,396,459 127 .687 _______ 2,898,sS6 60,769.8 ,371 1 0 l32J!1,!Jo_ _____q]l6j!,406 Payment for other Operating activities Rcnt. Taxes. Insurance. Lighting etc. Legal Expenses Postage, Stamp, Telegram & Telephone Directors' Fee & Expelises Shariah Supervisory Committee's Fees Auditors' & Expenses Fee Repair, Maintenance of Bank's Assets Zakat Expenses *Other Expenses (Note-26) (Note-37) 193,435,465 (Note-28) 44,426,040 1.525,132 29,9t?..8'76 (Nore-30) 8,3s2,956 5.205,101 (Note-32) 90,000 r,955,000 255,1 * l'otal other expeses excep loss on disposal of fiexed 1 46,214,231 404,60s.86 I ______120.22r.1_LL_ l0 402"500 4,986,714 gR04qrs (Note-35.c) (]..lote-36) t69,23s,276 | 1 ,989.243 Q..lote-33) a- ,13 I3.00 515,418,750 restatedl 42 2020 7,760,756,762 Net Operating Cash Flow per Share (NOCFPS) [previous year,s figure 4l ll 397.612.362 ______!!9.!Ji.0I assets Cash Increase/ Decrease in Other Assets of the Bank (Note-9) ClosingStock o1'Stationery, printing, and lnaterials etc.(valued at cost) Starnps (valued at cost) Advance rent 36.t76,942 239 Security dcposit* * Other Prepayments I "626,265 s,069,53 1 12,015,246 Advance to suppliers* Reccivable from Bangladesh Bank for Sanchay Patra payment Receivable tiom provident fund account Balance with First Security Islami Capital & Investrnent Limited Balance wilh Prime Bank lnvestmenl Limited Balancc rvith Lanka Bangla Securities Limitcd Other Receivables 3 0, s 1,89s,440 91,86 7 1,506,630 246,457.610 \4,979,53]l 12,78t,011 22,728,t27 t3 1,365,033 24,043,287 59,801,21s 6,366,830 2.971 12.074,444 4,321 61,294 16.47 5.279 48.1 95.434 ______l0qJl!.82s ____152-{52.slt_ OpeningStock o1'Stationery, printing, and materials etc.(valued at cost) Stanlps (valued at cost) Advance rent Security dcpositx* 30,594,867 1,086,320 246"457,670 486. r 78,304 4.97 9.s31 14.979.s31 t2,781,014 r 3 I.36s,033 25,902,282 | Otl.ier Prepaymcnts Advance to suppliers* Reccivable liom Bangladesh Bank for Sancliay patra payment Receivable from provident fund account Balance rvtth First Security Islami Capital & Investrnent Limited Balance with Prrme Bank lnvestment Limited Balance with Lanka Bangla Securities I-imited Other Receivables Cash ([ncrease)/ Decreasc in Other Assets n,444,109 1,506,630 59,80 1,2 l 5 3 6.3 23, (r3 5 I 5,539,48 I 6,3 66,83 0 4,321 4,321 48.195.434 69.05 8.5 06 ss2,052,s15 672,116,199 ___]11,!5]J2A_ __-____12!.A5t2{{_ 59
60. Hoda Vasi Chowdhury & Co Amount in'[aka 2021 44 I I 2020 Cash Increase/ Decrease in Other Liabilities(Note-13) ClosingProfit Suspense Account Provision for Gratuity for sanchay patra Outstanding Expenses Leased Liabilities as per IFRS Payable 3 - 7,950.0 I s 60,650,0 s 26.0 I 0.6s0 t8.436,442 1,880,906,417 I ,531,412.580 330,s64,620 172,496,918 I OpeningProfit Suspense Account Provision for Gratuity 1 1.12t,7il.5;3 t,160,t34,1;4 16 Expcnditure and other payable Payable 330,s64,620 556,8 I 1,579 47,929,158 for sanchay patra 37, I 00,000 60.650,01 s Outstanding Expenscs Leased Liabilrties as per IFRS Expenditure and other payable l6 1.121,761,503 Cash Increase/ (Decrease) in Other Liabilitics 45 18.436.441 28.850.26 I 1,531,412,579 n$76337 349,493,839 1,24s,036,243 1,094,962,589 13s,621,228 Cash and Cash Equivalent Cash in I{and Money at call and short notice Prizebond Balance with Bangladesh Bank & Sonali Bank Ltd (as agent Bangladesh Bank) Balarce with Other Banks & Financial lnstitr"rtions of 5,1t2,676.296 1 3.885.702.085 ____1!,02u4!pz!_ 1.087 .302.742 3.1 86.342.445 _____15,0 Reconciliation ofNet Profit after Taxation & Operating Profit before changcs in operating assets 022!5115_ & liahilities 46 Cash flows fiom operating activities Net Protit afler'l'axation Provision fbr Tax I ,3 19,3 & Contingent Liability (lncrease)/Decrease profi t receivable lncrease/(Decrease) Profit Payable on Deposits Depreciation & Amortization of Fixed Assets Provisior.r for lnvstment, Share Iucome tax paid Loss/Profrt on sale ofpropefiy, plant and equipment Operating Profit beforc changes in operating assets 47 88,904 I l, I 06,638,680 257,078,734 ,326,3 63,3 8 8 s27,846,848 46 555 75) (1,153,451,178) (82,779,8 I s) 1,076,989,053 (30 1 ,8 1 9,1 49) s36,885, l 05 (897,s90, l 33) (7 1 4,5 I 3"8 476,966,298 l3) 3,83 I ,63 5 2,249,770,800 & liabilities 1,278,619,509 Number of employees and support staffs Regular employee Officer and executit,es f-- Contractual Officer and executives Support staff fil+l [--1,1681 27 24 451 336 ___2[J2_:::::],52L Total As per the Schedule Xl olthe Companies Ac1, 1994, the uumber oferrployees (including contractual ernpioyees) engaged fbr the whole year or part thereofwho received more than total lernuneration ofTk 36,0rJ0 per annum or Tk 3,000 per month were 1450 as at 30 September 2020. 48 Disclosure on Audit Committee a) Particulars of Audit Committee l-he audit committee of the Board was duly constituted by the Board of Directors of the Bank in accordance with the BRpD ciroularno. ll dated 27 October 2013 ofBangladesh Bank. PursuanttotheBRPD circularno.08 dated 19 lurie 20ll and BSEC notification no. BSEC/CMRRCD/2006-l58/207lAclninl80 dated Jr-ure 03, 2018 on Corporate Governance, the current Committee is Constiruted with the following 05 (Five) members of-the Board. 60
61. Hoda Vasi Chowdhury & Co Amount in Taka 2o2t ----il Statuswith ll committee ll Note(s) SL No Status with bank Name lndependent Mr. Mohammed Kutub Uddowllah 2 Mr. Arif Ahrned Director Memher Director Director Member 3 Mr, Subrata Kumar Bhowmick. FCA 4 Mr. N4ohammad Shahiahan Meah 5 Mr. S.A.M Salimullah lndependenl Direclor Qualincation Bachelor of Science 'B.Sc) Chairman Director 2o;n - Educational Master of Science (M.Sc) in C E.M & AP-C,I.M M.Com, FCA Member Graduate Member Master of Business Adrninistration (MBA) b) Nlcetings hcld by the Audit Committec during thc year by date: Sl. rro. Meetins no. Holding Date 29th 04-March-2021 3Oth 03-May-2021 25-Novenrber-202 I l4-December-202 I 2 31s1 32nd 4 c) Rcview by the Audit Committee and Recommendation thereof: i ,., Reviewed the Summary'Report on Comprehensive Inspection of diff'erent branches of the Bank conducted by the Bangladesh Bank lnspection Team, b) Oversee the financial reporting process and Monitor choice ofaccounting policies . "' Ihe Colnmittee hold meeting with the external or statutory auditors for review ofthe year end annual financial statements b.fo.. submission to the Board for approval or adoptior.r; O,' The Cgmmittee review along with thc managenlent, the annual financial statements before submission to the Board for epprovall ",' Review along with the rnanagement, the quarlerly and hallyearly financial statements before submission to thc Board for approval; ,.., ' Scrutinizcd and evaluated the perlbrmance of the existing external auditors of the bank befbre recommending to the Board for onward placing of the names in the AGM for appointment, g) T ' n,' .. ') ., & principles, he Conrmittec revier.ved the Management Report on the financial statements of the Bank: Monitor Irrternal Audit and Compliance process to ensure that it is adequately resourced, including approval ofthe IACD PIan and review ofthe Internal Audit and Compliance Report; Reviewtheadequacyofinternal in th" Runk, auditfunctionanditsprocesstostrengthenedandcreationofasoundcomplianceculture Review the Management's Discussion and Analysis of Annual Report before disclosing for the Members and other 'l)Stakeholders: k) Revierv staternent of all related pafty transactions submitted by the management, l) Revierv Managernent Letters or Letter oflnternal Control weakness issued by statutory auditors; Whether the rules & regulations ofBangladesh Bank and all other authorities and Bank's policy guidelines nl). approved by thc Boarcl of Directors of the Bank duly complied with or not; n) Review pcriodic progress report oflnternal Audit & Compliance report olthe Bank; and Overseethedeterminationofauditf'eesbasedonscopeandmagnitude, o). Ievel ofexpertisedeployedandtimereqr:iredfor effectivc audit and evaluate the perfbrmance ofexternal auditors; 49 Related Party Disclosures As per IAS-24 "Rclated Parly Disclosures", a related party is a person or cntity that is related to the entily (i.e. GIB) that is preparing its financial statements. Related party transaction is a transl'er ol resources. services or obJigations betwccn a reporting entity and a related party, regardless olwhether a price is charged as per IAS-24. Related Partics include the Banl<'s Directors, key management personnel, associates, companies under common directorship etc. as pcr IAS-24 "Related Party Disclosures". All transactions rnvolving related parties arising in the normal course of business are conducted at arm's length at normal commercial rates on the same tenns and conditions as third party transactions using valuation modes, as admissible. a) Disclosure of transaction regarding b) Directors and their related concerns Shares issued to Directors and Executives without consideration or exercisable at 61 Annexure-E a discount. Nil
62. Hoda Vasi Chowdhury & Co Amount in Taka 2021 | | 2020 c) Lending Policies to Related Parties Transactions with Bank related person/related parties including Directors are made as per rules and regulations of the Bank Company Act, 1991 as amended and as per circulars issued by Bangladesh Bank time to time including the follorving general rules: i) Terms & conditions ior financial transaction with bank related person/related parties i.e. other investment clients. ii) Prior approval fiom the majority of Board of Directors shall be requrred fbr all flrrancial transactions with bank related will not be easier than other persons person/related parties. iii) TheBankshall notallo,uvfundedfacilitiesexceeding10%offierJcapital totheBankrelatedpersons/relatedparties;real invcstment facilities shall be considered deducting encashable securities from funded investment. d) Busincss other than banking busincss with auy rclated concerrr to the Dircctors as per Section 18(2) of the Bank Company Act, 199I. JL i) Particulars l,ease asreement made with the Director.Snonsor Director & lndeoendent Director: Name of Party Nature of Transaction Name lhindurpur Branch, Amount Feni i ihindurpur Branch, Feni Jffice Rent ATM Booth Rent Mr. Nizam Chowdhuarv 351.900 Mr. Nizam Chowdhuarv 62.370 ii) Service receiving comoanies wl.rere the Directors interest subsisted during the year 50 Amount in BDT NiI Financial highlights as on 3l December 2021 are shown in Annexure-F As per BIFD circular of Bangladesh bank and requirements of ICAB, Global Islami Bank not yet to receive any Audited financial statement from any Investment client ofour Bank for online verification through DVS systetns from the initiation of the login in the DVS systenls. Ifany audited financial statemelit is received fion.r any client for the Investmenl proposal in future, we through DVS systems. 51 Events will vcrify the sratement rfter the reportiug period fhe Board of directors in its 62nd meetings held on 24 March,2022 has approved to paid l0% cash dividend to its the year ended 3 1 December 2021 But Bangladesh Bank vide their Ietter Ref. No: sharcholderslor DOS(CAMS) I I 57141 (Dividend)12022.-2054 dated I 8 Aprtl 2022 has given their NOC to pay maximam 7o/o cash dividcnd. 52 & 10% total Approval of the financial statements The financial statements ofthe Bank has been approved by the Board ofDirectors at its 62nd Board meeting hcld on 24 March.2022. l h 62
63. Hoda Vasi Chowdhury & Co 6I $ o L o\ N t'€ an \o r;' a- a- N \o co 00 $ .+ co d} co c.l IE N $ \ I o <i' ta € s a.l .+ t-- \o F- o\ 6 frl at al o a) bo o il \o a F- f\ s\ ca + @ <- \ .+ co € + € + € O oo .+ a oo $ + a- a.l + co rn U fi aa- ; € lEl *+ o ?. o\ s1. o\ @ c.l € rN ir- a- t ca v1. N tr- \o + N € v dl .'1, 00 s |"a <" N E] o EI Q-, 6l 50 o r=N oo @ + € tra'l v1 co 09 € --:{:i=, ,t.it * o $ <+ \o al O .I L .= ?q. oo \ t-\ at trl L a € + o an v Ol co oo oo tr- c.l O c.l .f v(.) c9 + € oo 09 o\ 6 6l t O 6 ri € @ rd ao <- o\ .o. 6l o\ -:: ta_ = ..) -?a oo + + cl U fri + o\ \o- .+ <. d o o\ O N od <. N O oo Q Fo'\ a-l =t^ \o o\ F. t .I rf, EI [-t-l "---l l^l lFl qD lll a o 4 lol Irl lul f:-] I !o I icIo-^l I eli I< +t o. +l {A D D () Q 4 a Q (, O C o ,o -o .9 o o Y D D o r'l D O () O (, O Q t! +A D I I I I tl ltl.vl .o -o C lcl t-l o lgt lrl l-El l.-ll o t:il | ,s I I 4 ; f, F 3 zo ll ll ll c L_] a @ 5 0 s o f ! C G q c o co o : F f -o c a 6 c o m = = G o o d o o OJ f .g C L o C G so E f o G Y o o co ra f,; C o o C G co c c o o o c o co E o I c f ! c o co co co m (.) f c o .E E o o i-
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68. Hoda Vasi Chowdhury & Co GIobal Islami Bank Limited Name of Directors and their interest in different entities As on st Name of Directors no. I Mr. Nizanr Chowdhurv 3l December 2021 Status with Entities where lhey have GiB interesl ll lrade Balance USA Corporation (lNC) President lushiara Power Limited Director lS Pharma \viva Finance Limited Vice Chairperson 5.28v. Director 19.00% Director t.48% Managing Director 95.00% l8 00% 95.00% t4aimuna Trading Proprietor Islmi Bank Limited I 00.00% Chairperson 40.00% Direclol 20.00% Chrir per son 40.00% Managing Director I 8.00% 0.55% Shareholder l&A Fabrics Linited Director 4.10% l&A Accessories Limited Director 0.33% Director 14.29% Managing Director 9745% )rchard Developer & Construction Limited Chairman 14.30% Mmaging Director 70.00% Managing Director 80.00% Mmaging Director 66.67% Jrchard Industries Limited Managing Director 66.67% \4ecca Cola Limited Managing Director 11.50% luliAviation Limited Managirg Director 64.179/o 3enga1 Telecom Compmy Limited )rchrd Hotels & Resorts Limited tndigo Biopharma Limited Royal Aviation Senr'ices Limited M/s Arif Traders iparrow Textiles Limited IInion Bank Limited Baraka Farm House Limited Ws. Fazana Trading Enterprise Director Shareholdel Shareholder -Iotel Orchard Plaza Limited 5 55.50% Chairperson )rchard Sweaters Limited Director Director lnitex Petroleum Limited 3lythe Limited Llmited 00.00% Jnitex LP Gas Limited rirst Security Mr. Arif Ahned I 1.82% INI Paint Industries Limited Director Chairman 50.00% Jmnibus Logistics Limited Mrs. Farzana Begrul reDresentins Shah Amanat Prakritik Gas Linrited 00.00% 15 00% Shareholder ihahella Spinning Mills Limited representing Hasan Abasan (Pvt.) I Chairperson nitex Porver Plant Limited 4 I Jnitex Steel Mills Limited :ilobal Svnthetic Limited Dr. Mohammed Faruque ll ienesis Textiles Accessories & Apparels -imited rlorthern Islami Insurance Limited Western Designers Limited Mrs. Mainruna Khanam ll--;l r,,.*., Chairman lrade Balance Bangladesh Limited 2 Status Director 55.00,20 Managing Director 71.A6% Propritor Managing Director I 00.00% 80.00% Shareholder 4.9lYo Managing Director 75.00% Proprietor I 00.00% lha.h Ammat Prakritik Gas Co. Limited Managing Director 30 00% -ion Securities & Investments Limited Managing Director o 250/^ Slobal Trading Corporation Limited Director 40.00yo nfini|l Director 4s.00% C.R. Strips Industries Limited lnion Bank Liniited Shareholder rirsr Security lslarDi Bank Limited Shareholder 3.99% Director 4s.00% iingston Flour Mills Limited 5 060 I
69. Hoda Vasi Chowdhury & Co A SI Name of Directors no. Status with Entities whcre they have interest GiB !4/s. Tuin Enterprise lalco Steel (BD) Limited Alam vegetable oil Limited ionali Traders Mr. Shahidul Alanr 6 representing Fatellabad Farm Director Limited Proprietor Director Managing Director 30.00% g representjng Portman Cements 3.550/0 Al-Arafah Islami Bank Limited Shareholder 0.28% Direclor Norinco Engineering Limited Managing Director 15.00% Not Applicable Not Applicable infinia Spinning Mills Limited ll Mr. BourharrrLl Hassan Choudhrrrr representing Modern Properlies Limited Platinurn Endeavors Limited Managing Director s0.00% Evergreen Shipping Limited Managing Director 50.00% Proprietor 100.00% Director 10.00% Managirlg Director 5t.41% Union Bank Limited Shareholder 4 910/" Al-Arafah Islami Basnk Limited Shareholder o o1v" Aviva Finance Limited Shareholder 8.44% AIBL Capital & Investments Limited Shareholder o 25'v" Islari Bank Limited Rashad Industries (Pvt) Limited Lesorts Limited Director 3 98% General Manager t0 00% Chairman 25.00yo Director 25.00% Muscat Holidav Resofi Limited Director 25.00% ireenvest Construction Lilnited Managing Director 2s.00% Bijoy TV Limited Director 25 00% Propefty Consortium Limited Director 20 aaa Idea Iniinity Proprieior latd Milano Managing Partner 50 00% Trustee N/A I 00 00% Milano Express Managing Parlner 50.00% Little Asia Managing Partner 25.00% Proprietor 100.00% Metropolilan Chamber of Cornmerce Director N/A Khaja Ajmiri School and College 'frustee N/A Managing Parlner 33.30va Green Har./est Agro 'epresenting Prasad Paadise Shareholder H.N. Automobiles Limited Milano Bakery 12 70.00yo s.00% Black Hawk SecuriS, Service Ms. Rokea Yesmin 100.00% 4.6',70/o Premier Unlversity Director Proprietor Managing Director Shareholder Rashad Establishment (Sultmate of Omar) Director Not Applicable Director First SecuriO/ l0 000/^ 2.57% Galco Steel (BD) Limited Limited 6 Shareholder S Alam Super Edible Oil Limited Director 00.00% 0.37% M/s. Shahnaj Trading Ms. Shahana Ferdous r Shareholder Union Bank Limited tr 00.00% Social lslami Bank Limited Sparrow Spinning Limited 8 I 36.00v. Proprietor M/s. Mostm Billah Adil Mr. Md. Mostan Billah Adil representing WESCO Limited nterest Director Mr. Director I Shareholder First Security Islami Capital Investment Linrited '7 l'h of Status Jnion Bank Limited Fatehabad Farm Limited Subrata Kumar Bhowmick representing Karnaphuli Prakritik Gas Linited nnexu re - f) Proprietor I 00.00% JMC Builders (Plivate) Limited Director 30 00% Mostafa salt lndustries (Private) Limited Director 50.00% Chairperson 33.00% Moon Express (Private) Limited JMC Shipping Lines (Pvt.) Limited Chit'tagong Expon 4.00% Vice Chairperson Proprietor 1 00.00%
70. Hoda Vasi Chowdhury & Co Annexure - D SI no. 13 Name of Directors Mr. Hasan Matsur representing Uuitex l'yre Lirn ited Mr. Wahidul Alarr t4 Status with Director H.M International Padma Canada Seth representing Global Trading Corporation Ltd. Entities where they have interesl GiB Director Mr. Mohamnred Oheidul Director Chernicals Limited I6 Mr. Mohammed Kutub Uddowllah t7 Mr. S.A.M Salimullah lndependent Director Independenl Direclor l8 Dr. Md. Nizmul Hoque Bhuiym 19 Mr. Ahmed lvluktadir Arif Independent Director lndependent T}renfnr 1 Director 00.00% s0 00% Proprietor 100.00% Staple Food Proprietor 100.00% Proprietor 100.00% 3lobal City HVAC Alm representing Bangladesh Petro Proprietor "l' of Intercst INTRA Excel Dyeing & Pdnting Linrjted 15 Status Mmaging Partner t8.00yo Lmd Mark Llotel & Restaurant Proprietor I 00.00% favsir Trade Pronrietor I 00.00% l&A Real Estate Lirnited Director 2s.00% Blue Touch Partner 60 00% )rchid Business Hotel Parlner 50.0001 Director and CEO 100.00% D. S. Line Not Not Applioable Not Applicable Not Applicable Not Applicable Not Aoolicable Not Applicable Not Applicablc Not Annlicable Annl icahle I
71. Hoda Vasi Chowdhury & Co Annexure-E Global Islami Bank Limited Statement of Related Party transactions and their related concerns As on J1 December 2021 Nature of Transaction Relationship Name Avrva Finance Limited (Reliancel Sharehol der RASHAD INDUSTRIES iPVT.l LTD Flxed deposit & Spouse of Stimulus Director Mr Mohammad Shahjahan Meah) Package Bai MuajjalUddom-Trading Mr Mohammad Shahjahan Meah (Director) Mr Mohammad Shahjahan N4eah (Director) & Mr Md. Bank Guarantee Ms. Dannv Chowdhurv Snonsor shareholder Credit Card Mr. Rashed Uddin Mahmud Sponsor shareholder Credit Card Ms. I(hodeza Begurn Family rnember of Sponsor Director Credit Card Mr. I'Jizam Chowdhurv Director Credit Card Mr. Moharnrnad Zakaria Chorvdhury Farnily member of Director Credit Card Ms. Shahana lrerEius Mr. Abdus Samad Director Credit Card Ms. Sharmin Fatema Mr. Md. Abdullah Hassan Mr. Md. Rasedul Alan, Mr Md. Mostan Billah Adil Mr. Arif Ahmed Mr. Mohamrnad Shaiahan Meah Ms. Shaiada Noor Bequm Dr. Moharrmad Fanrorre Familv member of Director lamilv member of Director Familv member of Director 34,596,63 8 78.370 Credit Card Director Familv member of Director Familv rnember of Director F-amilv member j,839,08 6 (Guarantor) Kan-ral Pasha (Shareholder) Mr. Jawadul Alam Chowdhurv Mr. Atiqul Alam Chowdhurv Mr. Shahidul Alam 27,242,s84 & Working Capital M/s. A. Hoque Tradcrs H.N. Autornobiles Ltd 2.993.177.219 Bai Muajjal Worker Salary Mrs. Sajeda Noor Begurn (Shareholder Outstanding Credit Card Credit Card Credit Card 85.942 Credit Card 415,905 6.1 68 Credit Card olDirector Credit Card Director Director Director Credit Card 143.963 Credit Card Credit Card 431.770 Familv member of Director Director Credit Card 388,569 Director Familv n.rember of Director Credit Card 433.943 Credit Card 6,023 Famrlr, member of D ector Credit Card Familv member ol' Director Credit Card Credit Card Ms. Iladrun Nessa Alarn Mr. Flasan Mansur Director Familv member of Director Director Mr. Morshedul Alam Director Credit Card Mr. Osrnan Cani Ms. Farzana Begum Mr. Belal Ahnred Mr. Ahsanul Alan.r Mr.Wahidr,rl Alanr Seth Credit Card -11 )/ ooo Credit Card 328,35s Credit Card 6.937
72. Hoda Vasi Chowdhury &Co Annexure-E Global Islami Bank Limited Statement ofRelated Party transactions and their related concerns As on 31 December 2021 Nature of Transaction Relationship Name Shareholder Aviva Finance L,mitcd (Reliance) RASIlAD INDUSTRIES (PVT.) LTD Fixed denosit & Spouse of Stimr-rlus Director Mr Mohammad Package Shahjahan Meah) 21 .242,584 & Working Capital M/s A. Hoque'lraders Bai MuajjalUddom-Trading Mr Mohammad Shahjahan Meah (Director) H.N. Automobiles Ltd 2,993,177.219 Bai Muajjal Worker Salary Mrs. Sajeda Noor Begum (Shareholder Outstanding 3,83 9,086 (Guarantor) Mr Mohammad Shahjahan Meah (Director) & Mr Md. Bank Cuarantee Kamal Pasha (Shareholder) 34,s96,638 Sponsor shareholder Credit Card Snonsor shareholder Credit Card Ms. Khodeza Begum Family member of Sponsor Director Credit Card Mr. Nizam Chowdhurl Director Credit Card Mr. Moharnrnad Zakaria Chowdhury Farnily member of Director Credit Card Ms Shahana Ferdous Credit Card Aticrul Alan-r Chowdhury Director Familv member of Director Farnrlv member of Director Familv member of Director Cred Card 6,1 68 ShahidLrl Alam Director Cred Card 85,942 Fan-rilv member of Directot Familv member ol Director Familv member of Drrector Credit Card 415.905 Director Director Director Familv member of Director Ms. Dannv Chowdhurv Mr. Rashed Uddin Mahmud Mr. Mr. Mr. Mr. Abdus Samad .lawadul Alam Chowdhurv Ms. Sharmin Faterna Mr. Md. Abdullah Hassan Mr. Md. Rasedul Alam Mr. Md. Mostan Billah Adil Mr Arif Ahmed Mr. Moharnmad Shaiahan Meah Ms. Shaiada Noor Begum Dr. Mohammad Faruque Mr. Osman Gani Ms. Farzana Begum Mr Belal Ahmed Mr. Ahsanul Alam Mr.Wahidul Alam Seth Ms. Badn-rn Nessa Alam Mr Hasan Mansur Mr Morslredul Alarr Cred 78,370 Card Credit Card Cred Card Cred Card Cred Card r43,963 Credit Card Credit Card 431.770 Credit Card 388,569 Director Director Familv member ol Director Familv member of Director Familv member of Director Credit Card Credit Card 411 94'1 Credit Card 6,023 Director Familv member of Director Director Credit Card 24.999 Credit Card 1?R 155 Credit Card 6.931 Director Credit Card Credit Card Credit Card 71
73. Hoda Vasi Chowdhury & Co Annexure-F Global Islami Bank Limited Highlights As at 31 December 2021 PARTICULARS SL I (Taka in million) 2021 2020 Paid up Capital 2 Total Resulatory Capital 5,154.19 4908.15 8,837.06 1,836.30 ) Capital Surplus (1,528.2t) 4 Total Assets 132,810.30 120,902.12 5 Total Deposit t06,7 49.49 6 Total Investment (Loans & Advance) tt1 ,805.46 t07,086.97 1 Total Contingent Liabilities and Commitment 5,17 6.84 5,110.71 8 lnvestment Deposit Ratio ( % ) Percentage of Classified Investment against total Investments 90.11% 81/1% 2.23% 2.03% t,3 t9.39 1.029.29 2,386.1 1,8 9 l0 Profit after I'ax and PrdVision 1t Amount of Classified Investment 12 Provisions kept against classified lnvestment 13 Provisions surplus t4 Cost of Fuhd 15 Profit Earning Assets 16 Non-Profit Earning Assets 11 Return on Investment in Securities (ROI) i8 Return on Assets (ROA) 19 Income from Investment in Securities 20 Earnings Per Share [previous year's figure restatedl 21 22 Net Income Per Share lprevious year's figure restatedl Price Earning Ratio (Tirnes) t2 1 ( 1,3 5 8.26) 92,909.11 84.54 680.0s 436.77 8.72v, 10.9s% I 18,392.68 101,969.19 14.411.63 18.932.93 2.56% 10.63% 1.040.o 0.910. 210.09 998.68 2.56 2.00 2.56 2.00 N/A N/A