Social Islami Bank: Consolidated Financial Statements - 30 June 2017

Transcription

1. SOCIAL ISLAMI BANK LIMITED CONDENSED CONSOLIDATED BALANCE SHEET ( UN-AUDITED) AS AT 30 JUNE 2017 Note(s) 30.06.2017 Taka 2016 Taka PROPERTY AND ASSETS Cash Cash in hand (Including Foreign Currencies) Balance with Bangladesh Bank & its Agent Banks (Including Foreign Currencies) Balance with other Banks and Financial Institutions 3(a) 2,727,059,704 1,816,338,179 3.1 21,844,059,384 24,571,119,088 16,131,320,942 17,947,659,121 4(a) In Bangladesh Outside Bangladesh Placement with Banks & other Financial Institutions 517,096,125 (207,947,396) 309,148,729 5 842,645,333 423,996,755 1,266,642,088 7,286,666,624 7,196,666,624 8,550,000,000 1,801,693,825 10,351,693,825 9,150,000,000 1,680,581,919 10,830,581,919 188,236,856,219 7,274,379,118 195,511,235,337 166,581,331,180 7,194,802,194 173,776,133,374 3,333,873,356 15,773,548,671 257,137,285,630 3,268,326,670 13,529,293,052 227,815,302,848 4,417,889,000 3,000,000,000 15,558,265,700 123,823,232,775 43,051,886,297 25,656,508,753 4,710,798,549 251,503,182 213,052,195,256 13,899,504,009 111,657,941,041 40,060,818,730 19,406,875,568 5,031,314,320 236,879,638 190,293,333,306 10 6,400,000,000 3,000,000,000 11(a) 20,229,624,672 25,432,429 17,306,863,759 21,775,365 244,125,141,357 213,621,972,430 7,382,986,420 4,538,603,804 7,538,694 1,004,065,009 78,948,589 7,382,986,420 4,318,771,137 6,154,312 1,004,065,009 1,481,351,830 13,012,142,516 1,757 257,137,285,630 14,193,328,708 1,710 227,815,302,848 Investments in Shares & Securities Government Others Investments 6(a) General Investment etc. Bills Purchased and Discounted Fixed Assets including Premises, Furnitures and Fixtures Other Assets Non Banking Assets Total Assets 7(a) 8(a) LIABILITIES AND CAPITAL Liabilities Placement from Banks & other Financial Institutions Deposits and Other Accounts 9(a) Mudaraba Savings Deposits Mudaraba Term Deposits Other Mudaraba Deposits Al-Wadeeah Current & Other Deposit Accounts Bills Payable Cash Waqf Fund SIBL Mudaraba Subordinated Bond Other Liabilities Deffered Tax Liabilities/ (Assets) Total Liabilities Shareholders' Equity Paid-up Capital Statutory Reserve General reserve Revaluation reserve on Fixed Assets Retained Earnings Total Shareholders' Equity of Parent Company, SIBL Non controlling Interest Total Liabilities & Shareholders' Equity of the Group
2. 30 .06.2017 Taka 2016 Taka Off-balance Sheet Items CONTINGENT LIABILITIES Acceptances and Endorsements Irrevocable Letters of Credit (including Back to Back Bills) Letters of Guarantee Bills for Collection Other Contingent Liabilities Total 21,311,794,242 25,303,241,577 14,297,498,371 3,861,966,070 64,774,500,259 23,002,645,081 21,928,766,660 11,485,872,882 3,434,061,967 59,851,346,590 OTHER COMMITMENTS Documentary credits and short term trade related transactions Forward assets purchased and forward deposits placed Undrawn note issuance and revolving underwriting facilities Undrawn formal standby facilities, credit lines and other commitments Total Total Off Balance Sheet Items including Contingent Liabilities Company Secretary Director Chief Financial Officer Chairman 64,774,500,259 59,851,346,590 Managing Director & CEO (CC)
3. SOCIAL ISLAMI BANK LIMITED CONDENSED CONSOLIDATED PROFIT AND LOSS ACCOUNT (UN-AUDITED) FOR THE HALF YEAR ENDED 30 JUNE 2017 Note(s) Jan-June 17 Taka Jan-June 16 Taka 12(a) 13(a) 8,704,642,193 5,412,237,055 3,292,405,138 174,136,974 972,800,319 257,157,327 1,404,094,621 4,696,499,758 8,021,515,760 5,116,949,837 2,904,565,923 77,444,413 804,239,668 211,693,186 1,093,377,268 3,997,943,191 4,548,422,575 2,566,665,210 1,981,757,365 54,300,975 496,831,418 202,723,605 753,855,998 2,735,613,362 4,109,608,260 2,349,034,293 1,760,573,967 41,708,253 416,778,648 167,605,559 626,092,461 2,386,666,428 1,293,473,892 221,964,042 7,652,016 5,650,128 66,360,135 4,773,548 5,932,265 446,584 287,500 141,196,646 55,712,148 360,646,001 2,164,094,905 1,094,845,889 152,615,614 5,126,184 5,050,997 79,538,553 6,359,356 4,449,691 453,790 123,486,022 44,896,287 316,307,617 1,833,129,999 744,408,036 139,565,602 5,658,895 2,841,651 20,751,072 3,630,001 2,833,716 307,671 132,250 117,414,799 27,856,074 142,255,481 1,207,655,247 615,650,473 93,382,008 3,080,755 2,666,985 24,994,014 3,970,000 2,406,071 308,245 103,392,200 22,448,143 157,392,033 1,029,690,926 2,532,404,853 1,339,524,489 22,384,405 1,361,908,894 1,170,495,959 2,164,813,192 901,141,072 15,048,473 916,189,545 1,248,623,647 1,527,958,116 723,571,862 13,009,384 736,581,246 791,376,870 1,356,975,502 513,437,758 4,609,166 518,046,924 838,928,578 Provision for Income Tax 876,469,202 710,681,895 573,608,848 446,795,655 Net Profit/(Loss) after Tax attributable to equity holders of the group 294,026,757 537,941,752 217,768,022 392,132,923 Investment Income Less: Profit paid on Deposits Net Investment Income Income from Investment in Shares/securities Commission, Exchange and Brokerage Other Operating Income 14(a) 15(a) Total Operating Income Salaries and Allowances Rent, Taxes, Insurances, Electricity etc. Legal Expenses Postage, Stamps, Telecommunication etc. Stationery, Printings, Advertisements etc. Managing Director's Salary and Allowances Directors' Fees & Expenses Shariah Supervisory Committee's Fees & Expenses Auditors` Fees Charges on Investment Loss Depreciation & Repair of Bank's Assets Zakat Expenses Other Expenses Total Operating Expenses 16(a) 17(a) 18(a) 19(a) Profit/(Loss) before Provision Provisions for Investments Other Provisions Total Provision Total Profit/(Loss) before Tax Non-controlling Interest Net Profit/(Loss) after Tax attributable to equity holders of the parent Appropriation Statutory Reserve Retained Earnings Earning Per Share Net Asset Value Per Share (NAV/Share) Net Operating Cash Flow Per Share (NOCFPS) Company Secretary Director April-June 17 Taka April-June 16 Taka 47 20 13 19 294,026,710 537,941,732 217,768,009 392,132,904 219,832,667 74,194,043 294,026,710 243,495,940 294,445,792 537,941,732 154,026,345 63,741,663 217,768,008 163,650,125 228,482,778 392,132,903 0.40 17.62 3.53 Chief Financial Officer Chairman 0.73 16.85 (2.31) 0.29 17.62 3.53 0.53 16.85 (2.31) Managing Director & CEO (CC)
4. SOCIAL ISLAMI BANK LIMITED CONDENSED CONSOLIDATED CASH FLOW STATEMENT (UN-AUDITED) FOR THE HALF YEAR ENDED 30 JUNE 2017 30.06.2017 Taka A. B. C. D. Cash Flow from operating activities Investment Income receipt Profit paid on deposits Dividend receipts Fees & commission receipt Cash payments to employees Cash payments to suppliers Income tax paid Receipts from other operating activities Payments for other operating activities Operating profit before changes in operating assets and liabilities Changes in operating assets and liabilities Statutory deposits Net trading securities Investments to other banks Investment to customers Other assets Deposits from other banks Deposits received from customers Other liabilities on account of customers Trading liabilities Other liabilities Sub Total Net Cash flow from operating activities Cash flows from investing activities Proceeds from sale of securities Payment for purchases of securities Proceeds from sale of fixed assets Purchases of property, plant & equipments Purchase/Sale of subsidiaries Net Cash flows from investing activities Cash flows from financing activities Receipts from issue of debt instruments SIBL Mudaraba Subordinated Bond Receipts from issue of right shares/ordinary share Dividend paid in cash Net Cash flow from financing activities Net increase/(decrease) in cash & cash equivalents (A+B+C) E. Cash and cash equivalents at the beginning of the year F. Cash and cash equivalents at the end of the year (D+E) 30.06.2016 Taka 8,704,642,193 (5,412,237,055) 174,136,974 494,789,848 (1,298,247,440) (295,976,192) (797,374,525) 735,167,797 (446,028,131) 1,858,873,469 8,021,515,760 (5,102,582,518) 77,444,413 421,161,649 (1,101,205,245) (84,589,550) (569,102,047) 594,771,205 (540,794,781) 1,716,618,887 478,888,094 (21,735,101,963) (1,446,881,094) 6,076,199,989 16,682,661,961 689,424,262 745,191,250 2,604,064,719 (628,238,927) (22,798,191,020) (1,197,298,416) (466,456,759) 21,816,139,123 (144,923,969) (3,418,969,968) (1,702,351,082) (189,389,828) (189,389,828) (192,548,988) (192,548,988) 1,417,889,000 3,400,000,000 (1,476,597,284) 3,341,291,716 5,755,966,607 (1,054,712,346) (1,054,712,346) (2,949,612,417) 26,410,967,833 32,166,934,440 25,128,640,648 22,179,028,231 (2,867,860,514) Company Secretary Director Chief Financial Officer Chairman Managing Director & CEO (CC)
5. SOCIAL ISLAMI BANK LIMITED STATEMENT OF CONDENSED CONSOLIDATED CHANGES IN EQUITY (UN-AUDITED) FOR THE HALF YEAR ENDED 30 JUNE 2017 (amount in Taka) Particulars 1 Balance as at 01 January 2017 Changes in Accounting Policy Resatated Balance Surplus / (Deficit) on account of Revaluation of Properties Surplus / (Deficit) on account of Revaluation of Investment Currency translation difference Net gain and losses not recognized in the Income Statement Net profit for the year Appropriation made during the year Issue of Cash Dividend Issue of Share Capital Transferred to retained earnings Non-controlling interest Total group shareholders' equity as on 30 June 2017 Eligibile Capital under Basel III: Add: General provision for unclassified investment Add: SIBL Mudaraba Subordinated Bond Total eligible capital as on 30 June 2017 Paid-up Capital 2 7,382,986,420 7,382,986,420 7,382,986,420 Share Premium Account 3 - Statutory Reserve 4 4,318,771,137 219,832,667 4,538,603,804 4,538,603,804 Company Secretary Chief Financial Officer Director Chairman General / Other Reserves 5 6,154,312 1,384,382 7,538,695 7,538,695 Asset Revaluation Reserve 6 1,004,065,009 1,004,065,009 211,135,945 Retained Earnings 7 1,481,351,830 294,026,710 (219,832,667) (1,476,597,284) 78,948,589 78,948,589 Non-Controlling Interest 8 1,710 47 1,757 1,757 Managing Director & CEO (CC) Total 9=(2 to 8) 14,193,330,418 294,026,710 1,384,382 (1,476,597,284) 47 13,012,144,273 12,219,215,210 3,148,942,629 5,440,000,000 20,808,157,839
6. SOCIAL ISLAMI BANK LIMITED CONDENSED BALANCE SHEET (UN-AUDITED) AS AT 30 JUNE 2017 Note(s) 30.06.2017 Taka 2016 Taka PROPERTY AND ASSETS Cash Cash in hand (Including Foreign Currencies) Balance with Bangladesh Bank & its Agent Banks (Including Foreign Currencies) Balance with other Banks and Financial Institutions 3 2,724,370,978 1,815,513,100 3.1 21,844,059,384 24,568,430,362 16,131,320,942 17,946,834,042 4 In Bangladesh Outside Bangladesh Placement with Banks & other Financial Institutions 509,862,413 (207,947,396) 301,915,017 5 675,742,843 423,996,755 1,099,739,598 7,286,666,624 7,196,666,624 8,550,000,000 3,281,692,225 11,831,692,225 9,150,000,000 3,160,580,319 12,310,580,319 188,866,856,219 7,274,379,118 196,141,235,338 167,001,331,180 7,194,802,194 174,196,133,374 3,323,982,897 13,720,098,444 257,174,020,908 3,257,521,001 11,696,703,613 227,704,178,572 4,417,889,000 3,000,000,000 15,558,265,700 123,823,232,775 43,051,886,297 26,049,553,890 4,710,798,549 251,503,182 213,445,240,393 13,899,504,009 111,657,941,041 40,060,818,730 19,678,057,596 5,031,314,320 236,879,638 190,564,515,334 6,400,000,000 19,938,794,992 24,264,984 244,226,189,369 3,000,000,000 16,931,081,824 20,784,787 213,516,381,945 7,382,986,420 4,538,603,804 1,004,065,008 22,176,308 12,947,831,540 257,174,020,908 7,382,986,420 4,318,771,137 1,004,065,009 1,481,974,061 14,187,796,627 227,704,178,572 Investments in Shares & Securities Government Others Investments 6 General Investment etc. Bills Purchased and Discounted Fixed Assets including Premises, Furnitures and Fixtures Other Assets Non Banking Assets Total Assets 7 8 LIABILITIES AND CAPITAL Liabilities Placement from Banks & other Financial Institutions Deposits and Other Accounts 9 Mudaraba Savings Deposits Mudaraba Term Deposits Other Mudaraba Deposits Al-Wadeeah Current & Other Deposit Accounts Bills Payable Cash Waqf Fund SIBL Mudaraba Subordinated Bond Other Liabilities Deffered Tax Liabilities/ (Assets) Total Liabilities 10 11 Capital/Shareholders' Equity Paid-up Capital Statutory Reserve Revaluation reserve on Fixed Assets Retained Earnings Total Shareholders' Equity Total Liabilities & Shareholders' Equity
7. SOCIAL ISLAMI BANK LIMITED CONDENSED PROFIT AND LOSS ACCOUNT (UN-AUDITED) FOR THE HALF YEAR ENDED 30 JUNE 2017 Note(s) Jan-June 17 Taka Jan-June 16 Taka April-June 17 Taka April-June 16 Taka 12 13 8,651,306,871 5,384,074,002 3,267,232,869 148,724,797 893,512,933 255,629,723 1,297,867,453 4,565,100,321 7,983,475,734 5,102,582,518 2,880,893,216 73,533,416 767,385,529 203,785,400 1,044,704,346 3,925,597,561 4,520,968,221 2,551,543,320 1,969,424,901 43,119,756 468,313,613 202,008,724 713,442,093 2,682,866,993 4,089,920,183 2,341,015,317 1,748,904,866 39,631,131 399,822,965 160,002,856 599,456,953 2,348,361,818 1,279,901,313 219,185,212 7,652,016 4,565,455 66,055,278 4,773,548 5,656,265 446,584 287,500 139,316,067 55,712,148 342,861,112 2,126,412,498 1,084,051,548 149,991,496 5,126,184 4,236,608 79,417,001 6,359,356 4,185,191 453,790 121,965,765 44,896,287 306,293,563 1,806,976,788 736,336,179 138,193,314 5,658,895 2,359,665 20,566,998 3,630,001 2,695,716 307,671 143,750 116,311,983 27,856,074 135,103,161 1,189,163,406 609,207,817 91,891,427 3,080,755 2,279,174 24,931,834 3,970,000 2,261,571 308,245 102,616,814 22,448,143 153,677,653 1,016,673,433 2,438,687,824 1,339,524,489 1,339,524,489 1,099,163,335 2,118,620,773 901,141,072 901,141,072 1,217,479,701 1,493,703,588 723,571,862 723,571,862 770,131,726 1,331,688,386 513,437,757 513,437,757 818,250,629 Provision for Income Tax 862,531,138 703,817,830 567,422,190 448,599,228 Net Profit/(Loss) after Tax 236,632,197 513,661,871 202,709,536 369,651,401 219,832,667 16,799,530 236,632,197 243,495,940 270,165,931 513,661,871 154,026,345 48,683,190 202,709,535 163,650,125 206,001,274 369,651,399 Investment Income Less: Profit paid on Deposits Net Investment Income Income from Investment in Shares and Securities Commission, Exchange and Brokerage Other Operating Income 14 15 Total Operating Income Salaries and Allowances Rent, Taxes, Insurances, Electricity etc. Legal Expenses Postage, Stamps, Telecommunication etc. Stationery, Printings, Advertisements etc. Managing Director's Salary and Allowances Directors' Fees & Expenses Shariah Supervisory Committee's Fees & Expenses Auditors' Fees Charges on Investment Loss Depreciation & Repair of Bank's Assets Zakat Expenses Other Expenses Total Operating Expenses Profit/(Loss) before Provision Provisions for Investments Other Provisions Total Provision Total Profit/(Loss) before Tax Appropriation Statutory Reserve Retained Earnings Earning Per Share Net Asset Value Per Share (NAV/Share) Net Operating Cash Flow Per Share (NOCFPS) Company Secretary Director 16 17 18 19 0.32 17.54 3.74 Chief Financial Officer Chairman 0.70 16.81 (2.32) 0.27 17.54 3.74 Managing Director & CEO (CC) 0.50 16.81 (2.32)
8. SOCIAL ISLAMI BANK LIMITED CONDENSED CASH FLOW STATEMENT (UN-AUDITED) FOR THE HALF YEAR ENDED 30 JUNE 2017 30.06.2017 Taka A. B. C. D. Cash Flow from operating activities Investment Income receipt Profit paid on deposits Dividend receipts Fees & commission receipt Cash payments to employees Cash payments to suppliers Income tax paid Receipts from other operating activities Payments for other operating activities Operating profit before changes in operating assets and liabilities Changes in operating assets and liabilities Statutory deposits Net trading securities Investments to other banks Investment to customers Other assets Deposits from other banks Deposits received from customers Other liabilities on account of customers Trading liabilities Other liabilities Sub Total Net Cash flow from operating activities Cash flows from investing activities Proceeds from sale of securities Payment for purchases of securities Proceeds from sale of fixed assets Purchases of property plant & equipments Purchase/Sale of subsidiaries Net Cash flows from investing activities Cash flows from financing activities Receipts from issue of debt instruments SIBL Mudaraba Subordinated Bond Receipts from issue of right shares/ordinary share Dividend paid in cash Net Cash flow from financing activities Net increase/(decrease) in cash & cash equivalents (A+B+C) E. Cash and cash equivalents at the beginning of the year F. Cash and cash equivalents at the end of the year (D+E) Company Secretary Director Chief Financial Officer Chairman 30.06.2016 Taka 8,651,306,871 (5,384,074,002) 148,724,797 415,502,462 (1,284,674,861) (292,892,505) (783,613,329) 733,640,193 (426,476,218) 1,777,443,408 7,983,475,734 (5,102,582,518) 73,533,416 384,307,510 (1,090,410,904) (83,653,609) (562,495,672) 586,863,419 (527,892,109) 1,661,145,267 478,888,094 (21,945,101,964) (1,239,781,502) 6,076,199,989 16,804,506,711 809,156,097 983,867,425 2,761,310,833 (628,238,927) (22,878,191,021) (1,076,119,006) (466,456,759) 21,808,790,240 (136,279,709) (3,376,495,183) (1,715,349,916) (188,830,810) (188,830,810) (189,999,616) (189,999,616) 1,417,889,000 3,400,000,000 (1,476,597,284) 3,341,291,716 5,913,771,739 (1,054,712,346) (1,054,712,346) (2,960,061,878) 26,243,240,264 32,157,012,003 25,046,888,745 22,086,826,867 Managing Director & CEO (CC)
9. SOCIAL ISLAMI BANK LIMITED STATEMENT OF CONDENSED CHANGES IN EQUITY (UN-AUDITED) FOR THE HALF YEAR ENDED 30 JUNE 2017 (amount in Taka) Particulars 1 Balance as at 01 January 2017 Changes in Accounting Policy Resatated Balance Surplus / (Deficit) on account of Revaluation of Properties Surplus / (Deficit) on account of Revaluation of Investment Currency translation Difference Net gain and losses not recognized in the Income Statement Net profit for the year Appropriation made during the year Issue of cash dividend Issue of Share Capital Transferred to retained earnings Total shareholders' equity as on 30 June 2017 Eligibile Capital under Basel III: Add: General provision for unclassified investment Add: SIBL Mudaraba Subordinated Bond Total eligible capital as on 30 June 2017 Company Secretary Director Share Premium Account Paid-up Capital 2 7,382,986,420 - Statutory Reserve 3 - 7,382,986,420 7,382,986,420 - Chief Financial Officer Chairman 4 4,318,771,137 219,832,667 4,538,603,804 4,538,603,804 General / Other Reserves 5 - Asset Revaluation Retained Earnings Reserve 6 1,004,065,009 1,004,065,009 211,135,945 7 1,481,974,061 236,632,197 (219,832,667) (1,476,597,284) 22,176,307 22,176,307 Managing Director & CEO (CC) Total 8=(2 to 7) 14,187,796,627 236,632,197 (1,476,597,284) 12,947,831,540 12,154,902,476 3,148,942,629 5,440,000,000 20,743,845,105
10. SOCIAL ISLAMI BANK LIMITED SELECTED NOTES TO THE FINANCIAL STATEMENTS AS AT AND FOR THE SECOND QUARTER /HALF YEAR ENDED 30 JUNE 2017 1 The Bank and its activities 1.1 Status of the Bank The Bank was incorporated as a Public Limited Company in Bangladesh in the year 1995 under Companies Act, 1994. The Bank is one of the interest-free Shariah based banks in the country and its modus- operandi are substantially different from other conventional Banks. The Bank within the stipulations laid down by Bank Companies Act, 1991 and directives as received from time to time from Bangladesh Bank, provides all types of commercial Banking services. Besides as a matter of policy the Bank conducts its business on the principles of Mudaraba, Musharaka, Murabaha, Bai-Muazzal & Hire Purchase transaction approved by Bangladesh Bank. The Bank is listed with Dhaka Stock Exchange Limited and Chittagong Stock Exchange Limited as a publicly traded company. The Bank carries its Banking activities through One hundred twenty one (121) branches operating as per Islamic Shariah prevailing in the country. The Registered Office of the bank is located at 'City Center', 90/1 Motijheel Commercial Area. 1.2 Enlistment with the Stock Exchanges The bank subscribed for IPO (Initial Public Offer) in the year 2000 and initially listed with Dhaka Stock Exchange (DSE) Ltd. and later on in the year 2005 with Chittagong Stock Exchange (CSE) Ltd. Subsidiaries of SIBL: 1.3 SIBL Securities Limited SIBL Securities Limited, a wholly owned subsidiary of SIBL, was incorporated as a Public Limited Company under the Companies Act,1994 vide certification of incorporation no. C - 85876/10 dated 20 July 2010 and obtained its certificate of commencement of business on the same day. The company has already got it license for trading with Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE). The company started its commercial operation in the month of January 2012. The principal place of business is the Registered Office at 3rd floor, 15 Dilkusha C/A, Dhaka-1000. The principal objectives of the company for which it was established are to carry on the business of stock brokers, dealers in relation to shares and securities dealings and other services as mentioned in the Memorandum and Articles of Association of the company. 1.4 SIBL Investment Limited SIBL Investment Limited, a wholly owned subsidiary of SIBL, was incorporated as a Public Limited Company under the Companies Act,1994 vide certification of incorporation no. C - 86726/10 dated 30 August 2010 and obtained its certificate of commencement of business on the same day. The principal objectives of the company for which it was established are to carry on the business of stock brokers, dealers in relation to shares and securities dealings, to underwrite, manage and distribute the issue of stocks etc. and other services as mentioned in the Memorandum and Articles of Association of the company. Name of the Company 1 SIBL Securities Limited 2 SIBL Investment Limited Total Capital Paid up Capital (Taka) 1,230,000,000 250,000,000 1,480,000,000 Percentage of Share Holding SIBL Others 99.9999187% 99.9997600% 0.0000813% 0.0002400% 1.5 Off-Shore Banking Unit (OBU) Bangladesh bank approved operation of Off-Shore Banking Unit (OBU) of Social Islami Bank Limited located at Banani Branch, through their letter no. BRPD(P-3)744(119)/2010-4652, Dated: 11.11.2010. The bank has commenced the operation of its Off-Shore Banking Unit (OBU) from 02.05.2012.
11. 2 Basis of Presentation of Financial Statements and Significant Accounting Policies 2 .1 Investment in Shares and Securities The Bank investment in different securities has been valued on 30.06.2017 as under: Quoted Bond & Shares Unquoted Shares Bangladesh Govt. Islamic Bond CDBL Share & Preference Share At cost or Market Value whichever is lower At cost At cost At cost All investment in securities are initially recognized at cost, including acquisition charges associated with the investment. Premiums are amortised and discounts are accredited. As per BRPD circular no. 15 (09 November 2009), investments in quoted shares and unquoted shares are revalued at the year end at market price and as per book value of last audited balance sheet respectively. Provision should be made for any loss arising from diminution in value of investment. As such the company measures and recognizes investment in quoted and unquoted shares at cost if the year–end market value (for quoted shares) and book value (for unquoted shares) are higher than the cost. However as per requirements of Bangladesh Accounting Standard (BAS)- 39, investment in shares falls either under “at fair value through profit and loss account” or under “available for sale” where any change in the fair value at the year-end is taken to profit and loss account or revaluation reserve respectively. SIBL recognises its 'Investment in Shares and Securities' as per BAS-39 and accounted for the required profit/(loss) after adjustment of the value of shares and securities through profit and loss account. 2.2 Revaluation gains/losses on Government securities SIBL is a bank running on Islamic Shariah principle. Hence, we do not participate in buying interest bearing Government securities. 2.3 Recognition of profit suspense Profit / Rent / Compensation Suspense account and Doubtful Income Profit / Rent / compensation accrued on classified investments are suspended and accounted for as per BRPD Circular no: 15 (09 November 2009) issued by the Bangladesh Bank. Moreover, incomes that are irregular (doubtful) as per Shariah are also not included in the distributable income of the Bank. Income on unclassified overdue investment of Murabaha and Bai-Muazzal is charged under compensation account instead of showing as income of the Bank. Interest received from NOSTRO accounts are not credited to the income as per Islamic Shariah. 2.4 Financial instruments-presentation and disclosure Financial instruments-presentation and disclosures are made in several cases as per guidelines and instructions of Bangladesh Bank in particular and respective cases. Requirements of BAS-32 and BFRS-7 can not be followed due to the presentation and disclosure obligations of Bangladesh Bank. 2.5 Cash and cash equivalent As per BRPD circular no 15 (09 November 2009), cash and cash equivalents include notes and coins in hand, balances lying with ATM, unrestricted balances held with Bangladesh Bank and its agent Bank, balance with other Banks and financial institutions, placement with Banks and other financial institutions. As per BAS 7, cash and cash and cash equivalents should be reported as cash item and reconciliation of the amounts of the items in its cash flow statement should be presented also. However, presentation and reconciliation is done in line with BRPD circular 15 and BAS 7. 2.6 Cash Flow Statement Bangladesh Accounting Standard (BAS)-7 " Cash Flow Statement" requires SIBL to prepare cash flow statement under direct method. However, Cash Flow Statement has been prepared under a adopted method of direct and indirect in accordance with the BRPD Circular No. 15, (09 November 2009) issued by the Banking Regulation and Policy Department of Bangladesh Bank. 2.7 Off-balance sheet items Contingent Liabilities Any possible obligation that arises form past events and the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Bank; or Any present obligation that arises from past events but is not recognised because: * it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation; * the amount of the obligation cannot be measured with sufficient reliability. Contingent liabilities are not recognised but disclosed in the financial statements unless the possibility of an outflow of resources embodying economic benefits is reliably estimated. Contingent assets are not recognised in the financial statements as this may results in the recognition of income which may never be realised. However, the amount of cash margin is recognised as liability. As per BRPD circular 15, contingent liabilities are recognised as off balance sheet items in absence of any
12. recommendation in BFRS . 2.8 Investments net off provisions Investments are presented at its actual value without netting off as per BRPD circular 15 though it is to be presented at net off value as per related BFRS. 2.9 Consolidation Procedures (BAS-27) The consolidated financial statements include the financial statements of Social Islami Bank Limited and its subsidiaries SIBL Securities Limited and SIBL Investment Limited, made up to the end of the financial year. The consolidated financial statements have been prepared in accordance with Bangladesh Accounting Standard (BAS) 27: Consolidated and Separate Financial Statements, Bangladesh Financial Reporting Standards (BFRS):3- Business Combinations and Bangladesh Financial Reporting Standards (BFRS):10- Consolidated Financial Statements. The consolidated financial statements are prepared to a common financial period ended 30 June 2017. 2.10 Reporting Period These financial statements cover six months from 01 January to 30 June 2017. 2.11 Statement of Changes in Equity The statement of changes in equity reflects information about the increase or decrease in net assets or wealth. 2.12 Earning Per Share (BAS-33) Basic Earnings Per Share has been calculated in accordance with Bangladesh Accounting Standard (BAS)-33: Earnings Per Share (EPS), which has been shown on the face of profit and loss account. This has been calculated by dividing the basic earnings by the weighted average number of ordinary shares outstanding during the period. Prior year EPS has been restated as and when required.
13. 30 .06.2017 Taka 3 31.12.2016 Taka Cash in hand: In Local Currency In Foreign Currencies ATM balance 2,554,074,264 12,654,734 157,641,980 2,724,370,978 1,550,016,878 7,487,038 258,009,185 1,815,513,100 Social Islami Bank Limited 2,724,370,978 1,815,513,100 Cash in hand of Subsidiary companies SIBL Securities Limited SIBL Investment Limited 2,688,726 2,683,525 5,201 2,727,059,704 825,079 819,878 5,201 1,816,338,179 21,227,338,346 616,721,038 21,844,059,384 15,976,826,908 154,494,034 16,131,320,942 20,965,336,091 262,002,255 21,227,338,346 15,173,299,981 803,526,927 15,976,826,908 3(a) Consolidated balance of cash in hand 3.1 Balance with Bangladesh Bank and its agent bank (Sonali Bank) Balance with Bangladesh Bank (Note-3.1.1) Balance with Sonali Bank (as agent of BB) 3.1.1 Balance with Bangladesh Bank (Including foreign currencies) In local currency In foreign currencies 4 Balance with Other Banks and Financial Institutions In Bangladesh Outside Bangladesh 509,862,413 (207,947,396) 301,915,017 675,742,843 423,996,755 1,099,739,598 4(a) Consolidated balance of other Banks and Financial Institutions In Bangladesh Social Islami Bank Limited Add: Account Balance of subsidiaries of SIBL with SIBL Principal Branch SIBL Securities Limited (Current account and MTDR) SIBL Investment Limited Less: Inter company balance eliminated SIBL Securities Limited (Current account and MTDR) SIBL Investment Limited Add: Account Balance of subsidiaries of SIBL with other banks and financial institutions SIBL Securities Limited SIBL Investment Limited Consolidated balance with Banks and Financial Institutions 5 509,862,413 675,742,843 393,045,136 143,144,474 249,900,662 902,907,549 393,045,136 143,144,474 249,900,662 271,182,028 21,280,791 249,901,237 946,924,871 271,182,028 21,280,791 249,901,237 7,233,712 7,233,712 - 166,902,490 166,902,490 - 517,096,125 842,645,333 186,666,624 7,100,000,000 7,286,666,624 196,666,624 7,000,000,000 7,196,666,624 Placement with Banks & other Financial Institutions Placement with Banks Placement with other Financial Institutions
14. 6 Mode-Wise Investment (General) a) In Bangladesh Musharaka Murabaha Mudaraba Bai-Muazzal Hire-Purchase Sirkatul Meelk Quard Bai-Salam Staff Loan Ijarah Visa Card 30.06.2017 Taka 31.12.2016 Taka 406,496,988 4,149,311,600 9,344,845,615 116,880,171,313 45,691,640,071 8,373,924,924 672,158,784 2,407,283,750 341,603,855 599,419,319 188,866,856,219 394,014,125 3,923,518,808 6,890,919,882 103,157,036,645 39,236,072,051 9,867,948,969 499,755,394 2,222,858,996 327,654,954 481,551,356 167,001,331,180 Mode-Wise Investment (General) b) Outside Bangladesh Musharaka Murabaha Bai-Muazzal Hire-Purchase Sirkatul Meelk Installment Investment Scheme Quard Bai-Salam Others - - Bills Purchased and discounted Inside Bangladesh In land Bill Purchase 3,316,353,153 2,659,746,787 Foreign Bill Purchased Murabaha Bill of Exchange Murabaha Wes Bills L/C Baim-Wes bills 86,372,259 1,978,578,804 1,893,074,902 3,958,025,965 81,641,978 1,914,903,128 32,988,623 2,505,521,678 4,535,055,407 Grand total of net Bills Purchased and Discounted 7,274,379,118 7,194,802,194 196,141,235,338 174,196,133,374 630,000,000 195,511,235,337 420,000,000 173,776,133,374 12,330,000 2,041,752,442 556,829,237 531,916,770 119,404,402 61,201,363 548,683 3,323,982,897 12,330,000 2,067,278,718 515,344,228 519,764,731 113,852,786 28,369,291 581,246 3,257,521,001 Bills Purchased and discounted Outside Bangladesh Total Investment 6(a) Consolidated Investment Less: Intercompany balance eliminated SIBL Securities Ltd. Quard Investment with SIBL-Proncipal Branch SIBL Investment Ltd. 7 Fixed Assets: Land Building Furniture & Fixture Mechanical Appliance Computer Software Motor Vehicle Books
15. 30 .06.2017 Taka 31.12.2016 Taka 7(a) Consolidated written down value of fixed assets including intangible assets 8 Social Islami Bank Limited 3,323,982,897 3,257,521,001 Add: Fixed assets of subsidiary companies SIBL Securities Limited SIBL Investment Limited Carrying value of Fixed assets of the Group 9,890,459 9,890,459 3,333,873,356 10,805,668 10,805,668 3,268,326,670 Stock of stationery Stamps and printing materials etc. Advance Rent Advance Deposit Branch Adjustments (SIBG) Suspense Account: Other Prepayments Receivable from Stock & Bond and SIBL Securities Advance Income Tax Receivable from SIBL Investment Protested bills against Investment Profir receivable from Banks NBFI and BD Govt. Investment with off-shore Banking Unit Due from off-shore Banking Unit Others (note: 8.1) Total 30,377,407 234,567,871 2,903,609 1,970,197,560 694,714,298 64,233,416 756,696,262 7,479,012,155 1,781,805 313,407,280 194,571,146 4,406,800,652 18,632,435 1,959,003,200 18,126,899,097 28,343,402 189,109,289 2,998,351 1,977,063,521 293,646,443 64,209,171 53,881,354 6,695,398,826 1,758,805 313,407,280 242,508,711 1,936,578,574 103,309,420 1,731,069,040 13,633,282,187 Less: Balance with OBU for elimination Investment with off-shore Banking Unit Due from off-shore Banking Unit Grand total after elimination of balance with OBU 4,406,800,652 13,720,098,444 1,936,578,574 11,696,703,613 Social Islami Bank Limited Add: Other assets of subsidiary companies SIBL Securities Limited SIBL Investment Limited Less; Inter Company transactions eliminated: Receivable from SIBL Securities Receivable from SIBL Investment 13,720,098,444 2,055,232,032 2,055,232,032 1,781,805 1,781,805 11,696,703,613 1,834,348,245 1,834,348,245 1,758,805 1,758,805 Grand total Other assets of subsidiary companies 15,773,548,671 13,529,293,052 Others Assets: 8(a) Consolidated other Assets 8.1 Others Clearing Adjustment Wes fund purchased Adjusting A/c debit balance Advance VAT paid BEFTN adjustment A/c Balance with Principal Branch (PF) Balance with Principal Branch (SIBL Employees` Superannuation Fund) Balance with Principal Branch (SIBL/ Gratuity Fund) 835,718 1,089 273,875,513 3,815,178 (232,161) 1,052,694,479 90,138,442 537,874,942 1,959,003,200 1,089 227,248,410 3,815,178 33,323 962,694,479 90,138,442 447,138,118 1,731,069,039
16. 30 .06.2017 Taka 9 31.12.2016 Taka Deposits and Other Accounts Mudaraba Savings Deposits (MSD) Mudaraba Term Deposits (MTDR) Other Mudaraba Deposit Mudaraba Short Notice Deposits (MSND) Mudaraba Scheme Deposits (Note-9.1) Al- Wadeeah Current Deposit and other aacounts (AWCD) Bills payable Cash Waqf Fund 15,558,265,700 123,823,232,775 43,051,886,297 15,128,337,252 27,923,549,046 26,049,553,889 4,710,798,549 251,503,182 213,445,240,392 13,899,504,009 111,657,941,041 40,060,818,730 12,968,519,770 27,092,298,960 19,678,057,596 5,031,314,320 236,879,638 190,564,515,334 57,450,790 2,488,130,843 36,819,920 68,022,356 2,955,264,914 632,423,784 875,444,334 85,311,402 2,265,524,477 135,871,440 28,122,280 31,198,349 1,148,589,729 470,078,466 83,378,682 205,511,982 7,961,346,596 9,324,729 2,602,349,314 4,951,330,292 125,445,296 705,442,652 1,166,418 27,923,549,046 48,597,151 2,665,656,550 39,387,149 88,652,462 2,527,024,777 632,305,189 847,968,938 119,875,823 2,761,006,839 156,601,557 31,705,198 37,388,111 1,181,162,198 524,402,501 106,223,946 235,338,350 7,129,018,123 8,895,713 2,188,637,421 4,983,186,961 155,814,764 622,266,062 1,183,178 27,092,298,961 26,049,553,889 19,678,057,596 393,045,136 143,144,474 249,900,662 271,182,028 21,280,791 249,901,237 25,656,508,753 19,406,875,568 9.1 Mudaraba Scheme Deposits Mudaraba Hajj Savings Deposit Mudaraba Pension Savings Deposit Mudara Education Deposit Scheme Mudaraba Monthly Savings Deposit Mudaraba Monthly Profit Deposit Mudara Bashasthan Savings Scheme Mudara Millionaire Savings Scheme Mudara Lakhopoti Deposit Scheme Mudara Double Benefit Deposit Scheme Mudara Marriage Savings Scheme Mudara MMohorana Savings Scheme Subarnalata Special Scheme (Wemen) Subarna Rekha Special Deposit (Wemen) Shabuj Shayanna Special Deposit Shabuj Chaya P. Sch Sanchita Special Deposit scheme Sanali Din Pension Deposit Scheme Sukher Thikana Saving Scheme Sacchandey Protidin Monthly Profit Deposit Samriddir Sopan Scheme Deposit Sopner Siri Deposit Scheme Sharner Shikhar (mudaraba Billinior Deposit) Proshanti (Mudaraba Zakat Saving Deposits 9(a) Consolidated balance of Al-Wadeeah Current Deposit & Other A/c Social Islami Bank Limited Less: Intercompany balance eliminated SIBL Securities Limited SIBL Investment Limited Consolidated balance of Current deposit and other accounts 10 SIBL Mudaraba Subordinated Bond SIBL issued Taka-300.00 crore sub-ordinated bond under the caption "SIBL Mudaraba Sub-ordinated Bond". The bond was mainly issued to support and strengthen the capital base of the bank under Tier-II supplementary capital of Basel-3. Bangladesh Securities and Exchange Commission (BSEC) and Bangladesh Bank (BB) vide their letter ref no. BSEC/CI/DS-13/2014/598 & BRPD (BFIS) 661/14 B(P)/20146027 Dated: 26 August 2014 & 16 September 2014 respectively gave consent to issue the said bond. The amount was to be redeemed @20% per annum after the end of first year and now there is a balance of Taka-240.00 crore as on 30.06.2017. SIBL further issued Taka-400.00 crore sub-ordinated bond under the caption 'SIBL 2nd Mudaraba Sub-ordinated Bond' on 20 June 2017 after getting consent of BSEC and Bangladesh Bank with refrence to BSEC/CI/DS-13/2014/28, date: 17 January 2017 and BRPD (BFIS)661/14B(P)/2017-1252, date: 01/03/2017. Now, there is a total balance of Taka-640.00 crore as on 30.06.2017 under the head 'Mudaraba Sub-ordinated Bond.
17. 11 Other Liabilities Adjusting A /C (Cr.) Balance Other Payable SIBL Employees' PF SIBL Employees' Gratuity fund SIBL Employees' Social Insurance Share Trading Payable A/c BEFTN Adjustment Account Parking Account ATM Settlement for Q-Cash Provision for Investments Provision for other Assets Compensation and Rent Suspense Provision for Taxation Liabilities for Zakat Provision for good borrower 11(a) Consolodated Other Liabilities Social Islami Bank Limited Add: Other Liabilities of subsidiaries SIBL Securities Limited SIBL Investment Limited Less: Intercompany balance eliminated SIBL Securities Limited (Payable to SIBL- Term loan) Grand Total 12 31.12.2016 Taka 7,739,329 5,091,371 1,052,694,479 600,408,076 90,138,442 720,500,206 74,145,462 174 142,302,187 5,548,561,176 370,077,572 1,560,103,917 9,696,320,455 55,712,148 15,000,000 19,938,794,992 9,562,781 3,275,077 962,694,479 553,123,795 90,138,442 30,504,326 246,022,822 4,459,306,534 370,077,572 1,264,313,910 8,837,269,513 89,792,573 15,000,000 16,931,081,824 19,938,794,992 920,829,680 920,829,680 20,859,624,672 16,931,081,824 795,781,934 795,758,934 23,000 17,726,863,758 630,000,000 20,229,624,672 420,000,000 17,306,863,759 30.06.2017 Taka 30.06.2016 Taka Income from Investment Profit on Murabaha Profit on Bai-Muazzal Profit on Hire-Purchase Profit on Musharka Profit on Bai-Salam Profit on Quard against MTDR Scheme and others Profit on Inland Document Bill Purchased Profit on Foreign Document Bill Purchased Profit on Ijarah Profit on Investment against Mudaraba Deposit with other banks and NBFIs Profit on other investments (Card Wakalat fee etc.) Profit on Mudaraba 12(a) Consolidated income from investment Social Islami Bank Ltd. Add: Income from investment of subsidiaries of SIBL SIBL Securities Ltd. SIBL Investment Ltd. Grand total of consolidated investment income 13 30.06.2017 Taka 57,054,486 5,320,615,112 2,267,431,124 15,980,150 25,541,163 282,106,945 170,270,291 1,818,294 20,167,750 215,294,651 275,026,903 8,651,306,871 71,490,983 4,680,573,025 1,820,522,051 21,894,037 16,681,215 267,866,502 185,121,764 447,325,486 12,392,504 318,740,900 133,981,658 6,885,611 7,983,475,734 8,651,306,871 53,335,322 53,335,322 8,704,642,193 7,983,475,734 38,040,026 38,040,026 8,021,515,760 179,621,797 123,292,662 3,897,990,333 3,072,203 1,035,166,602 5,239,143,597 181,164,887 39,849,334 3,500,371,620 5,208,993 1,184,596,452 4,911,191,285 144,930,405 191,391,234 5,384,074,002 5,102,582,518 Profit paid on Deposits Profit paid on deposits Mudaraba Savings Deposits (MSD) Mudaraba short notice deposit (MSND) Mudaraba term deposit (MTDR) Cash waqf fund deposit Profit paid on Scheme Deposits & others Profit paid on borrowings & Sub-ordinate Bond Total profit paid on deposits and borrowings
18. 30 .06.2017 Taka 30.06.2016 Taka 13(a) Consolidated Profit paid on deposits and borrowings Social Islami Bank Ltd. Add: Income from investment of subsidiaries of SIBL SIBL Securities Ltd. SIBL Investment Ltd. Grand total of consolidated Profit paid on deposits and borrowings 14 14(a) Consolidated income from commission exchange & brokerage Social Islami Bank Ltd. Add; Income from commission exchange & brokerage of subsidiaries of SIBL SIBL Securities Ltd. SIBL Investment Ltd. Grand total of consolidated Income from commission exchange & brokerage 415,502,462 478,010,471 893,512,933 384,307,510 383,078,019 767,385,529 893,512,933 767,385,529 79,287,386 972,800,319 36,854,139 804,239,668 3,825,075 3,447,202 167,616,879 22,087,545 1,138,900 66,600 29,479,556 823,971 27,143,995 255,629,723 674,049 827,985 136,335,917 23,994,841 803,066 193,100 16,726,094 1,292,740 22,937,607 203,785,400 255,629,723 203,785,400 1,527,604 257,157,327 7,907,786 211,693,186 550,005,812 553,665,504 110,859,947 12,990,483 51,750,157 5,402,958 1,284,674,861 455,656,800 449,683,866 124,769,934 7,827,000 41,584,587 4,529,361 1,084,051,548 1,284,674,861 1,084,051,548 13,572,579 1,298,247,440 10,794,341 1,094,845,889 Other Operating Income P & T charge recovered Courier Charges Recovery & Others Services & charges SWIFT/ Return charge recovered Rent receipts Income from sale of forms Service charge on SIBL Cards Notice pay earnings Miscellaneous income 15(a) Consolidated Other operating income Social Islami Bank Ltd. Add; Other operating income of subsidiaries of SIBL SIBL Securities Ltd. SIBL Investment Ltd. Grand total of consolidated Other operating income 16 5,102,582,518 14,367,319 14,367,319 5,116,949,837 Commission Exchange & Brokerage Commission Exchange Income 15 5,384,074,002 28,163,053 28,163,053 5,412,237,055 Salary & Allowances Basic Salary Allowance Bonus L/E Salary & Allowances Bank`s Contribution to Provident fund Bank`s Contribution to Social Insurance fund 16(a) Consolidated expenses for Salary and Allowance Social Islami Bank Ltd. Add; Salary and Allowance of subsidiaries of SIBL SIBL Securities Ltd. SIBL Investment Ltd. Grand total of consolidated expenses Salary & Allowance
19. 30 .06.2017 Taka 17 Rent Taxes Insurance & Electricity etc. Rent Rates & Taxes Insurance Electricity Lighting & Water 17(a) Consolidated expenses for Rent Taxes Insurance & Electricity Social Islami Bank Ltd. Add; Rent Taxes Insurance & Electricity of subsidiaries of SIBL SIBL Securities Ltd. SIBL Investment Ltd. Grand total of consolidated expenses for Rent Taxex Insurance & Electricity etc. 18 Legal Expenses Legal Fees & Charge Stamp Duties other Legal Expenses Other Legal Expenses 18(a) Consolidated Legal expenses Social Islami Bank Ltd. Add; Legal expenses of subsidiaries of SIBL SIBL Securities Ltd. SIBL Investment Ltd. Grand total of consolidated Legal expenses 19 Postage Stamps Telecommunication etc. Cable Network rent Telegram Fax telex & other charges Telephone charges Mobile phone charges 19(a) Consolidated Postage Stamps & Telecommunication stc. Social Islami Bank Ltd. Add; Poatage Stamps & Telecom. of subsidiaries of SIBL SIBL Securities Ltd. SIBL Investment Ltd. Grand total of Consolidated Postage Stamps & Telecommunication stc. 30.06.2016 Taka 132,635,368 52,948,135 33,601,709 219,185,212 101,974,458 16,565,728 31,451,310 149,991,496 219,185,212 149,991,496 2,778,830 221,964,042 2,624,118 152,615,614 5,080,635 43,529 2,527,852 7,652,016 4,644,751 42,090 439,343 5,126,184 7,652,016 5,126,184 7,652,016 5,126,184 170,119 2,469,916 1,925,421 4,565,455 125,292 178,005 2,233,563 1,699,748 4,236,608 4,565,455 4,236,608 1,084,673 5,650,128 814,389 5,050,997