Social Islami Bank: Consolidated Financial Statements - 31 December 2019

Transcription

1. AUDITOR 's REPORT AND CONSOLIDATED FINANCIAL STATEMENTS OF SOCIAL ISLAMI BANK LIMITED (SIBL) AND ITS SUBSIDIARIES FOR THE YEAR BNDED 31 DECEMBER 2019
2. ,} lndependent Auditors' Report To the shareholders of Social Islami Bank Limited Report on the Audit of the Consolidated and Separate Financial Statements Opinion Wc have auditec'l the consolidated financial statcments of Social Islami Bank Limited and its subsjdiaries (the "Group") as well as the separate financial statements of Social Islami Bank Limited (the "Bank"), which comprise the consolidated and separate balance sheets as at 31 Dccember 2019 and the consoliclated and separate profit and loss accounts, consolidated and separate statements of changes in erluity and consolidated and separate cash flow statements for the year then ended, and notes to the cor-rsolidated and separate financial statements, including a summary of significant accounting policies and otht:r explanatory inforrnation. Itt our opinion, thc accompanying consolidated financial statements of the Group and separate financial statcmcuts of thc Bank give a truc and fair view of the consolidated financial position of the Group and thc sepat'atc f-urancial position of the Bank as at 3l December 2019, and of its consolidated and separate f inariciai perfonlancc and its consolidated and separatc cash flows for the year then ended in accordance witlt International Financial Rcporting Standards (IFRSs) as explained in note 2 and comply with thc Bartl< Compatty Act, 1991 (as amended up to date), the Companies Act, 1994,the Rules and Regulations issuccl by the Bar-rgladesh Bank, the Rules and Regulations issued by the Bangladesh Securities & Exchange Commissior-r (BSEC) and other applicable Laws and Regulations. Basis lor opinion We conducted our audit in accordancc with International Standards on Auditing (ISAs). Our rcsponsibilitics under those staudards are further described in the Auditors' Responsibilities for the Audit of thc Consolidated ancl Separate Financial Statements section of our repoft. We are independent of the Croup and the Bank in accordance with the International Ethics Standards Board for Accountants' Code of Ethics for Professional Accountants (IESBA Code), Bangladesh Securities and Exchange Commission (USECI) and Bangladesh Bank, and rve have fulfilled our other ethical responsibilities in accordance witll thr- IESBA Code and thc Institute of Chartered Accountants of Bangladesh (ICAB) Bye Laws. We believe thal thc auclit evidencc we have obtained is sufficient and appropriate to provide a basis for our opinion. liel, irudit matters Kcy aLrdit utatters are thosc matters that, in our prof'essional judgement, were of most significance in thc consolidated and separate financial statements for 20 19. These matters were acidressed in the contcxt of thc audit of the consolidatcd and separate financial statements, and in forming the auditor's oltinioti thcreou, aud wc do not providc a separatc opinion on these matters. For each matter below our clcscription of how our trudit addressed thc matter is provided in that context. ar.tclit o1'the Wc have fulftlled the responsibilities describcd in the auditor's responsibilities for the audit of the consoliclatcd aud separate financial statements scction of our report, including in relation to these matters. AccorclirLgly, our audit included the performance of procedures designed to respond to our assessment of thc nsks of material rnisstatemcnts of thc consolidated and separate financial statements. These results of oLtr audit procedures, including the procedures pcrfonled to address the matters bclow, provide the basis tbr our auclit opinion on the accompanying consolidated and separate financial statements. f)escription of key audit matters N4e Our response to key audit matters asnrernent of provision lbr investments 'l-hc proccss for cstin,ating the provision for invcstn-rcnts portfolio associated with credit risk is significant and coLr-rpiex. We tested the design and operating effectiveness of key controls focusing on the following: . Credit appraisal, investments til disbursement
3. For the individual analysis for large exposllrc > provisions calculation consider the cstimatcs of fiture business perfonlance and thc markct value of collateral provided for crcdit transactions. For the collective analysis of exposure on portfolio basis, provision calculation and rcporting arc manually processed that deals u,ith voluminous databases, assulnptions and procedures, monitoring and provisioning process; Identification of loss events, including early warning and default warning indicators; and o Reviewed quarlerly Classification of Investments (CL); Our substantive procedures in relation to the provision for investments porlfolio compriscd the following: . . estirnatcs. At year cnd the Group reported total gross Invcstrnents of BDT 263,469 million (2018: BDT 237,8-54 million) and provision for invcstmcnts of BDT 11,507 million (2018: BDT 8.224 million). o Reviewed the adequacy of the gcncral and specific provisions in line with related Bangladesh Bank guidelines; Assessed the methodologies on which the provision arnounts are based, recalculated the provisions and tested the completeness and accuracy . . of the undcrlying information; Evaluated the appropriateness and presentation of clisclosures against relevant accounting standards and Bangladesh Bank guidelines. Finally, compared the amount of provision requirement as determined by Bangladesh Bank inspection team to the actual amount of provision maintained. Scc note no 7 and 13 to the financial statcnrents Valuation of Government bond for Islamic Shariah and treasury bond The classification and mcasurement of We assessed the processes and controls put in place by the Bank to identify and confirm the existence of Government Bond for Islamic Shariah and T-Bond" (lovernmcrrt Bond for Islamic Shariah and TBoncl require judgment and complex csti nrates. hr thc absence of a quotcd pricc in an active nrarkct. thc fair valuc of Govcrnment Bond ancl T-Bonds is cletemined using complcx vnlnation tcchniques wlrich rnay take into consideration direct or indirect unobservable market data and complex pricirrg models lr,hich requirc an elevatcd levei ofjudgment. We obtained an understanding, evaluated the design and tested the operating effectiveness of the key controls over the Government Bond for Islamic Shariah and T-Bond valuation processcs, including controls ovcr market data inputs into valuation rnodels, modcl governance, and valuation adjustments. We tested a sample of the valuation models and the inputs used in those models, using a variety of techniques, including comparing inputs to available market data. Finally assessed thc appropriateness and prcsentation of disclosurcs against relevant accounting standards and Bangladesh Bank guidelines. Scc note no 6 to the financial statements lmpairment assessment of unquoted investments In the absence of a qLroted price in an active nrarhet, the fair value of unquoted shares and borr..ls. cspecially any irnpairrncnl. is calculatcd using valuation techniques which nra)/ tal(e iuto consideration clircct or indirect We have assessed the processes and controls put in place by the Cornpany to ensure all major investmcnt decisions are undertaken through a proper due diligence process. liil
4. unobservablc market data and hence require an clcvated level ofjudgment . We tested a sample of investments valuation as at 31 December 2019 and compared our results to the recorded value. Finally wc assessed tl-rc appropriateness and presentation of disclosures against relevant accounting standards and Bangladesh Bank guidelines. See note no 6 to the financial statements IT systems and controls Our auclit procedures have a focus on IT We tested the design and operating effectiveness of the systems and controls due to thc pervasive Bank's IT acccss controls over the information systems lratlrrc anci complexity of the IT environment, that are critical to financial reporting. the largc voLume of transactions processed in We tested IT general controls (logical access, changes nurncrous locations daily and the reliance on mauagement and aspects of IT operational controls). atLtornated and IT deperrdent manual controls. Our areas o1'audit focus included user access luranagemcrrt, developer access to the production enrrironment and changes to thc IT eurrirorulent. Thcsc are key to ensuring IT dependcnt and application based controls are operating effectivcly. This included testing that requests for access to systcms were appropriately reviewed and authorized. We tested the Bank's periodic review of access rights and rcviewed requests of changes to systems for appropriate approval and authorization. We considercd the control environment relating to various interfaces, configuration and other application layer controls identified as key to our audit. Legal and regulatory matters We focusecl on this arca because the Bauk and its subsjdiaries (the "Group") operates in a We obtained an understanding, evaluated the design and tested the opcrational effectiveness of the Bank's legal ancl regulatory environment that key controls over the legal provision and contingencies is to significant litigation and similar risks arising from disputes and regulatory cxposecl process. ploceeclings. Suclr matters are subject to rnany We cnquired to those charged with governance to obtain thcir view on the status of all significant unccrtainties and the outcome mav be difficult to predict. These uncefiaintie s inherently affect the alnount and timing of potential outflows with rcspcct cs to the provisions which tabl i sh ed ancl other continger-rt 1 i have been abilities. C)verall, the legal provision reprcsents the Ciroup's and the Banh's best estimate for existing legal matters that have a probablc and cstimablc impact on the Group's financiai position. litigation and regulatory matters. We enquired of the Bank's internal legal counsel for ali significant litigation and regulatory matters We assessed the methodologies on which the provision arnounts are based, recalculated the provisions, and tested the completene ss and accuracy of the underlying information. We also assessed the Bank's provisions and contingent liabi lities disclosure. Ii @ and inspected internal notes and reports. ii]
5. Carrying value of investments in sutrsidiaries by the Bank Thc Bank has invested in equity shares of its two subsidiarie s , namely SIBL Securities SIBL Investment Limited. As at 3l December 2019 the carrying value of this investmcnt is BDT 1,480 millior-r. Lirr-ritecl and At the time of conducting our audit of the of the Bank we havc considered the recoverable value of the Bank's investments in all the above scparate financial statements subsidiaries stated at cost. Managemcnt has conducted impairment assessn-rent and calculatcd recoverable value of its individual subsidiaries in accordance with rAS 36. We have reviewed Management's analysis of impairment assessment and recoverable value calculation of subsidiaries in accordance with IAS 36. In particular, our discussions with the Management were focused on the continued appropriateness of the value in use model, the key assumptions used in the model, the reasonably possible alternative assumptiolts, particularly where thcy had the most impact on the value in use calculation. Wc also checked mathematical accuracy of the model, recalculated discount rate used within the model, inputs used in the dctern'rination of assumptions within the model were challenged and conoborating information was obtained with reference to external market information, third-party sources. Ernphasis of matter We draw attention to note 2.8.1 of the financial statements, which describes matters related to itrpletneutation of 'IFRS 16 Leases' including preliminary assessment of its impact as assessed by rnanageme nt. Our opinion is not modified in respect of this matter. 0ther rnatters The flnancial staternents of the Group and the Bank for the year ended 31 Decer-nber 2018 were audited by anothcl auditor who exprcsscd an unmodified opinion on those flnancial statements on 30 April 2019. Other information Managctrcnt is responsible for the other information. The other information comprises all of the infbrmation rn tire Annual Report other than the consolidated and separate financial statements and our auclitor's report thereon. The Annual Report is expected to be made available to us after the date of this aurditor's report. Our opinion on the consolidated and separate financial statements does not cover other infbrmation and wc clo not express any form of assurancc conclusion thereon. In connection with our audit of the consolidatcd and separate financial statements, our responsibility is to information identified above when it becomes available and, in doing so, consider whether the other information is r-r-raterially inconsistent with the consolidated and separate financial statements or our knowledgc obtained in the audit or otherwise appears to be materially misstated. reaci thc other Respnnsibilities of management and those charged and separate financial statements and internal controls with governance for the consolidated Mauagcr.netrt is rcsponsible for the preparation and fair presentation of thc consolidated financial slatements of the Group and also separate finaricial statements of the Bank in accordance with IFRSs as explaincd in notc 2, and for such internal control as managernent determines is l]ecessary to enable tllc prcparation of consolidated and separate financial statements that are free from material Iir]
6. lnisstatcrneltt , whether duc to fraud or error. The Bank Company Act, 199 I and the Bangladesh Bank Regulations require the Managernent to ensure effective internal audit, internal control and risk lranagclrent functions of the Bank. The Management is also required to make a self-assessment on the cl ctivcness of anti-fi-aud internal controls and report to Bangladesh Bank on instances of fraud and iorgcrics. ln preparing the consolidated and separate financial statements, managelnent is responsible for assessing the Group's and the Bank's ability to continue as a going concern, disclosing, as applicable, matters rclated to going concern and using the going concern basis of accounting unless management either intcnds to liquidatc the Croup and the Bank or to cease operations, or has no realistic alternative but to do Those charged with governance are responsible for overseeing the Group's and the Bank's financial rcporting proccss. Attditor's Responsibilities for the Audit of the Consolidated and Separate Financial Stirte menfs to obtain rcasonable assurarlce about whether the consolidated and separate financial sl.atelrents as a whole arc free from naterial misstatement, whether due to fraud or error, and to issue an auditor's rcpotl that includes our opinion. Reasonable assurance is a high level of assurance, but is not a -qtlaralttee that an audit conducted in accordance with lSAs will always detect a material misstatement lvhcn tt cxists. Misstatements cau arise from fraud or error and are considered material if, individually or OLrr objectives arc in thc aggregate, they could reasonabiy be expccted to influence the economic decisions of users taken on thc basis of these consolidated and separate financial statemeuts As part of an audit in accordancc with ISAs, we exercise professional judgement and maintain protbssional skepticism throughout the audit. We also: a Identify and asse ss the risks of material misstatement of the consolidated and separate financial statcments, whcther due to fraud or error, design and perform audit procedures responsive to those risks, ancl obtain audit cvidence that is sufficient and appropriate to provrde a basis for our opinion. The risl< of not detecting a material misstatcment resulting from fraud is higher than for otte resulting from error, as fraud may invoive collusion, forgery, intentional omrssions, rnisrepresentations, or thc override of internal control. a Obtain an understanding of intemal control relevant to the audit in order to design audit proceclures that are appropriatc in the circuntstallces. a Evaluatc the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures rnade by management. a Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's and the Bank's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are recluired to draw atterttion in our auditor's report to the related disclosures in the consolidated and separate [lnancial statcments or, if such disclosures are inadequate, to modify our opinion" Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future evcnts or conditions may cause thc Group and the Bank to ccase to continue as a going concern. Evaluate the overall prescntation, structure and content ofthe consolidated and separate financial statct-nents, including the disclosures, and whether the consolidated and separate financial lvl
7. statcments represent the underlying transactions and events in a manner that achieves fair : presentation. a Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statcments. We are responsible for the direction, superuision and performance of the group audit. We rcmain solely responsible for our audit opinion. We cor-mnunicate with those charged with governance regarding, among other matters, the planned scope ancl timing of the audit and significant audit findings, including any significant deficiencies in intemal control that we idcntify during our audit. We also provide those charged with govcrnancc with a statement that we have complied with relevant ethical rcquirerlrcnts regarding independence, and to communicate with them all relationships and other mattcrs that may reasonably be thought to bear on our independence, and where applicable, related salcguards. From thc matters cornmunicated with those charged with governance, we determine those matters that u'crc of most significance in the audit of the financial staternents of the current period and are therefore thc kcy audit nratters. We describe thcsc matters in our auditors' repoft unless law or regulation precludcs public disclosure about the lnattcr or when, in extremely rare circumstances, we determine that a matter shoLrld not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such conrmunication. Itcport on other Legal and Regulatory Requirements ln accordance with the Companies Act, 1994, the Securities and Exchange Rules 1987, the Bank (ionrpany Act, 1991 and the rules and regulations issued by Bangladesh Bank, we also reporl that: (i) all the information and explanations which to the best of our knowledge and belief were llece ssary for the purpose of our audit and made due verification thereof; (ii) to the extent notecl cluring thc course of our audit work performed on the basis stated under the Ar.rclitor's Rcsponsibility section in forming the above opinion on the consolidated financial statct.t-tct.tts and considering the reports of the Management to Bangladesh Bank on anti-fraud internal controls and instances of fraud and forgeries as stated under the Managemcnt's Responsibility for thc financial statements ancl internal control: (iri) rve have obtained (a) internal audit, internal control and risk management arrangements of thc Group as disclosed in the financial statements appeared to be materially adequate; (b) nothing has come to our attcntion regarding material instances of forgery or irregularity or: administrative error and exception or anything detrimental committed by employees of the Croup and its rclated entities {other than matters disclosed in these financial statements}; Consolidated financial statements of the Bank include two subsidiaries, namely SIBL Securities Limited and SIBL Investment Limited reflect total assets of BDT 345,185 million as at 31 Dccember 2019 and total revenue of BDT 30,861 for the year ended 31 Dccember 2019, Thc results of these subsidiaries havc been propcrly rcflected in the Group's consolidated financial statements; (iv) in our opinion, proper books of account as required by iaw have been kept by the Group and the Bank so far as it appeared from our examination of those books; lvil
8. tlte recorcls and statements submitted by the branches have been properly maintained (v) and consolidated in the financial statements, (vi) the consolidated balance sheet and consolidated profit and loss account together with the annexed notes dealt with by the report are in agrecrnent with the books of account and retums; (vii) the expenditures incured were for the purpose of the Bank's business for the year; (viii) the consolidated financial statements have been drawn up in conformity with prevailing rules, regulations and accounting standards as well as related guidance issued by Bangladesh Bank; (ix) adequate provisions have been made for advance and other assets as per DBI-4142(2)12020-327 dated l7 June 2020, which are in our opinion, doubtful of recovery; (x) the information and explanations required by us have been received and found satisfactory; (^i) we have reviewed over B0o% of the risk weighted assets of the Bank and spent over 9,380 persorl hours; and (xii) Capital to Risk-weighted Asset Ratio (CRAR) as required by Bangladesh Bank has been maintained adequately during the year. The engagerueut partners on the audit resulting in this independent auditor's report are Showkat Hossain FCA fl'om Hoda Vasi Chowdhury & Co and Md. Shaf,rqul lslam FCA from Shafiq Basak & Co. ,/h{^l,tu'e&tgeo Dhal<a. 2-5 .lune 2020 Hoda Vasi Chowdhury & Co Chartered Accountants Ivii] & Co. Chartered Accountants
9. ;i Hoda Vasi Chowdhury & Co. Chartered Accountants Shafiq Basak & Co. Chartered Accountants SOCIAL ISLAMI BANK LIMITED AND ITS SUBSIDIARIES CONSOLIDATED BALANCE SHEET AS at 3l December 2019 Particulars Note(s) 31.12.2019 3l .l 2.201 8 Taka Taka PROPERTY AND ASSETS Cash in hand Cash in hand (including foreign currencies) Balance with Bangladesh Bank 3(a) ? q4q 1sq RoR 2,344,325,541 & its Agent Banks (including foreign currencies) 3.1 28,949.112,602 31,898,532,410 23,73 5,810,3 5 9 26,080,135,900 Balance with other Banks and Financial lnstitutions In Bangladesh Outside Bangladesh 4(.a) A1 Placement with Banks and other Financial Institutions 5 Investments in shares and securities ) )!R 17S 511 1 ,r s9,076,554 1,084,292,499 323,695,854 3,372,668,032 7,482,772,408 6,826,069,299 5,91 1,619,899 6(a) Government 13,692,300,000 9.200,000.000 Others 4,1'70,415,304 17,862,715,304 17,749,022,367 7 (a) Investments Ceneral investment etc. Bills purchased and discounted ))o 251,238,985.230 12.229.601.419 263,468.589,649 Fixed assets including premises Other assets Non Banking assets Total 2.5,+9,022,367 8(a) 9(a) assets r.1,1 c)q4 5c)7 8.2 19,176,356 237,854,170,953 3,61i.716,895 1.572.25i.1 03 43.066,838 20.752.880,683 345,185,358,427 307,402,855,3I2 r 8, r LIABILITIES AND CAPITAL Liabilities Placement from Banks & other Financial Institutions l0 Deposits and other accounts l1 8.000.000.000 25,739,179,658 Mudaraba savings deposits Mudaraba tenn deposits Other mudarabr deposits Al-wadeeah cunent and other deposit accounts 19.621,561 .549 156.095,697.102 16s.68'7,514,476 I 1.2(a) Bills payable 1 1.3 43.5 69,089, r 82 )1 q6' 556 67? 64.112,318,321 25,608,307,7 r9 5,982.863,785 Cash waqf fund 312,7 t 0,31 4,3 84,822,,193 317,048,976 1 247,950,776.574 287,472,894,270 SIBL mudaraba subordinated bond Other liabilities Deferred tax liabilities/ (assets) I 12 9,400,000,000 10,800.000.000 3(a) 30,905,629,453 94,704,927 21,789,270,400 la (a) __5gl_012_ 327,873,228,650 Total Iiabilities 291.6 15,483,993 Capital/shareholders' equity Paid-up capital Statutory reser\re Gencral rescrve Revaluation reserve on fixed assets 15.2 16 I 8,933,413,560 6,122.261,269 Retlined eamings I Total shareholders' equity of parent Company, SIBL Non controlling interest Total shareholders' equity of parent Company, SIBL with non controlling interest Total liabilities and shareholders' equity of the group 1 9,843,3 56 10,764,2s0 931 .379,261 954,998.7'1t 6(a) 1-/ 8(a) I 8(b) 904.866,027 17 1 l7 .312,121 1 8. I 21 ,285,060 s 7c)5 455 tq7 ,963 15, 787,369,506 1.814 77,3 12,1t29,777 345,185,35824?7 .81 2 15,787,371,318 307 '402'855'312
10. Hoda Vasl Chowdhury & Co Chartered Accountants Shafiq Basak & Co. Chartered Accountants tl Particulars Note(s) 31.12.2019 31.12.2018 Taka Taka CONTINGENT LIABILITIES 20,129,420,463 19.2 ,800 15,775,047,149 19.3 11,322,648,116 10,_532,8r3,r65 Acceptances and endorsements 19.I Irrevocable letters ofcredit (including back to back bills) Letters ofguarantee Bills for collection Other contingent Iiabilities 2 1 ,93 I ,661 4,565,448,355 19.4 15,834,150,200 4,I 89,581 ,976 19.5 Total 53,594,806,020 50,685,965,804 53,594,806,020 50,685,965,804 OTHER COMMITMENTS Documentary credits and shoft 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 Contin gent liabilities Consolidated Net Asset Value per share (CNAV/share) (Prior year restated) Annexed notes (l 38(D 19.38 17.67 to 50) form an integral parl of these financial statements .$"R 1 Director Director & CEO Director Signed as per our repoft of same date t &ad",rt*'c'bgA Hoda Vasi Chowdhury & Shafiq Basal< Co. Chartered Accountants Co. Chartered Accountants Dhaka, Bangladesh Date:25.06.2020 2
11. Shafiq Basak & Co. Chartered Accountants Hoda Vasi Chowdhury & Co Chartered Accountants SOCIAL ISLAMI BANK LIMTTED AND ITS SUBSIDIARIES CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 3I DECEMBER 2OI9 Particulars Note(s) 31.12.20t8 Taka 31.12.2019 Taka Investment income 20(a) 21 ^872,037 ,07 5 25,073,045,000 Profit paid on deposits Net investment income 2t(a) 18,500,646,256 16,t37,104,994 Income from investment in shares/securities 22(a) 7"73,998,540 477,908,519 Commission, exchange and brokerage 23(a) 1,526,240,435 Other operating income 2a@) 1,687,365,606 r3 597 13 t9 689,0"19,020 2,989,317,995 12,360,708,815 Total operating income Salaries and allowances Rent, taxes, insurances, electricity etc. Legal expenses Postage, stamps, telecommunication etc. Stationery, printings, adveftisements etc. Managing Director's salary and allowances 2s(a) 3,413,882,572 26(a) 27 28(a) 579,209,966 29(a) 161,473,808 12,712,000 Directors' fees & expenses 3l(a) Shariah supervisory committee's fees & 11 3,167,969.465 530,631,708 ,268,715 1 8,716,440 30 expenses 2,762,413,539 11,697,753,545 0,5 86,493 446,501 971,500 10,088,8s3 132,965,876 11,920,000 4,872,901 245,903 62I .000 379,910,822 323,083, r 66 9,91 8,1 84 )./" Auditors' fees Charges on investment losses Depreciation & repair of Bank's 33(a) assets Zakat expenses 149,522,7 49 129,665,548 Other expenses 1,265,616,824 1,141 ,959,281 Total operating expenses 5,993,716,149 5,470,610,193 Profit/(Loss) before provision Provision for investments 3,184,444,138 2,261,500,825 3a@) 7 1 3l 542 Other provisions 3 Total provision Total profit/(loss) before income taxes 36(a) Provision for taxation 31(a) 5(a) 15,986,439 3,151,006,227 1,625,326,874 1,525,679,354 312 Net profit/(loss) after taxation 2,343,536,116 3,883,607,235 2,282,097,630 1,601,509,605 Appropriations Statutory reserve Retained surplus 626,805,811 898,873,482 169,658,950 898,873,480 831 ,850,640 831,850,655 Attributable to: Equity holders' of the Bank Non controlling interest 898,873,482 Consolidated Earning Per Share (CEPS) (Prior year Annexed notes t5 2 (l to restz 831,850,655 t.7t 38(a) an integral part of these financial statements 1 Director & CEO Director Signed as per our reporl of same date ,lMAf*r'Wgr- Shafiq Basak & Chartered Accountants Hoda Vasi Chowdhury & Co. Chartered Accountants Dhaka, Bangladesh Date:25,06.2020 J r.79
12. Shafiq Basak & Co. Chartered Accountants Hoda Vasi Chowdhury & Co. Chartered Accountants SOCIAL ISLAMI BANK T,IMITED AND ITS SUBSIDIARIES CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 3I DECEMBER 2OI9 Particulars 31.12.2019 31.12.2018 Taka Taka Note(s) 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 39(a) activities Payments for other operating activities aO(a) 1,41 8,028,758 4l(a) (2,084,247,716) 24,945.165,635 27,679,327,604 (16,156,600,941) 773,998,540 14,559,686,156) ( 411,908,519 166,440,458 (3,179,889,465) (143,054,728) (1,285,952,521) 742,845,087 (3,426,s94,s72) (170,250,248) (1,326,270,037) Receipts fiom other operating Operating profit before changes in operating assets and Increase/Decrease in operating assets and liabilities Statutory deposits Net trading securilies Investments to other Banks Investment to customers Other assets Deposits from other Banks Deposits received frorn customers Other liabilities on account of customers liab 1,452,298,215 ( r ,861 6,850,236,475 a2@) (.4,026,922) (6,113,692,931) (28,558,661 ,868) (25 a3(a) ,61s,882) 6,612,214,127 ,614,418,696) 4,128,793,353 (3,876,630,345) (3,042.338,602) (1,681,s02,44t) 41,654,702,726 19,652,534,404 Trading tiabilities Other liabilities Sub Total I ?qt 4a@) (2,0s7,81s,487) ?q7 751 11,472,146,853 (15,697,810,916) 18,322,383,329 (9,085,596,789) A. Net Cash flow from operating activities Cash flows from investing activities Proceeds from sale ofsecurities Paynent for purchases of securities Proceeds from sale offixed assets Purchases of properly, plant & equipment's (354,087,403) (361,282,428) (354,087,403) (367,282,428) Purchase/Sale of subsidiaries B. Net Cash flows from investing activities Cash flows from financing activities Receipts from issue of debt instruments SIBL Mudaraba Subordinated Bond Receipts from issue ofright shares/ordinary share Dividend paid in cash C. Net Cash flow from financing activities D. Net increase/(decrease) in cash & cash equivalents (A+B+C) E. Effects ofexchange rate changes on cash & cash equivalents F. Cash and cash equivalents at the beginning ofthe year G. Cash and cash equivalents at the end of the year (D+E+F) a5(a) Consolidated Net Operating Cash Flow Per (NOCFPS) (prior year restated) Annexednotes(lto Share 38(ii) ( 3,000,000,000 4"400,000,000 1,400,000,000) (9,400,000,000) 7,400,000,000 (2,052,879,217) 8,568,295,925 54,445,6A9 65,166,286 33,474,528,207 35.461,641 ,135 42,097,269,741 33,414,528,207 20.s1 (10.17) form an integral part of these financial statements 4tt Director Director Dhaka, Bangladesh Date:25.06.2020 (8,000,000,000) DHAKA 4 Director & CEO
13. o9 "rU odE Y] oo ao OO cri .9 a < -l-r F ", O o\ m r- I r) 6l tl t r FT N n 0a 00 >Ee 00 F. 6I b! F. j N al .I ln ca rn FF- t*- F- F. r F s6 m F- o!r N N co hl OH U U 5' F. o F. 6l al s v €. o\ o r r 6 -j' C N d N € F- Fia) o 6 ot @ N \o a.l ra N bo b! 2 O rr o\ >o 6I o\ 6 $ rn F. I o\ ?> P, 3d^ iAz7, a=e a;a lz< i-<- EE tr= q(J ia la) q Ylt .+ ro tf) F- ?c E3 t s O t- 6l al ,o' \o ra o cl N N t @ ra o b0 O I r-l ;(,)l- >EH <i|| l <z-z E € 'ii O o 1- a-& rn ro U a^l o 6 (\ € al I N E o x r.) € l a t t) ol i a o co l l g\ o o o o o o I q o O a 'd a d o o o o o o o I ts o O g od :o oC ox == U< '6r (E() o o o N o o o o d o 6 o o E o o o l o E o .6 o o. o Z Z o o d o d Q U o d o .6 o o d o 6 ,O d & o d oO 6t o= -O d O o o\ o o o o\ o t) o o L H J- d a 6 L 4 cl o E o o o I L o d o a r ? ra rn L tr') r) t€ = 6 Ir- =74 -ZZ Fl n l zQx d6E Fl-^ r in d o o d o € o N L a o O o d .o a a 5 OC 'oN d D o. Ern € o J H b! o o a M: d Ei .6 a F F ld c.l oo
14. SOCIAL ISLAMI BANK LIMITED BALANCE SHEET AS at 31 December 2019 Particulars Note (s) 3r.12.2019 31.12.2018 Taka Taka PROPERTY AND ASSETS Cash in hand Cash in hand (Including foreign currencies) Balance with Bangladesh Bank (Including foreign currencies) 2,949,269,520 2,344,258,315 949 172,602 31,898,442,122 23,735,810,359 26,080,068,614 2,288,360,10 r 1,084,292,499 3,3720652,600 1,159,022,085 323,695,854 1,482,717,939 6,826,069,299 5,911,619,899 3 & its Agent Banks 3.1 Balance with other Banks and Financial Institutions 4 In Bangladesh Outside Bangladesh Placement with Banks & other Financial lnstitutions lnvestments in shares & securities 5 6 Government r Others 3,692,300,000 5,426.683,481 19,118,983,481 Investments 9,200,000,000 3,886,550,839 13,086,550,839 7 General investments etc. Bills purchased and discounted 252,038,985,230 t2,229,604,419 264,268,589,649 Fixed assets including premises 8 Other assets Non Banking assets Total assets 9 3,606,049,143 1s.96s,444.733 345,056,231,627 230,434,994,597 8,219,176,356 238,654,170,953 3,563,534,711 18,526,658,424 307,305,321,444 LIABILITI ES AND CAPITAL Liabilities Placement from Banks & other Financial Institutions 10 Deposits and Other accounts 1t Mudaraba savings deposits Mudaraba term deposits Other mudaraba deposits Al-wadeeah current & other deposit accounts Bills payable 9,000,000,000 25,739,179,6s8 19,621 ,561 ,549 165 ,681 ,514 ,47 6 t56,095,697,702 13,569,089,182 24,336,269,747 4,384,822,493 317,048,976 248,324,489,649 64,t t2,318,321 11.2 I 1.3 Cash waqf fund 26,072,068,558 5,982,863,785 342,110,311 297,936,655,109 SIBL mudaraba subordinated bond Other liabilities Deferred tax liabilities/ (assets) 12 9,400,000,000 13 30,354,428,531 93,817,514 24,356,621,156 74,330,843 327,784,901,154 291,555,441,648 15.2 8,933,413,560 8,l2l ,28s,060 t6 5,195,455,397 1l 6,422,26t,269 93t,379,261 18 984,276,383 878, I 40,568 t4 Total liabilities Capital/Shareholders' eq I 0,800,000,000 uity Paid-up capital Statutory reserve Revaluation reserve on fixed assets Retained earnings 17,271,330,473 Total shareholders' equity Total liabilities & shareholders' equity CIARTERED o 954,998,711 15,749,879,796 307,305,321,444
15. Particulars 31 .12.2019 31.12.2018 Taka Taka Note(s) CONTINGENT LIABILITIES Acceptances and Endorsements 19.1 21 ,93 1,661 ,800 20,129,420,463 Irrevocable Letters of Credit (including Back to Back Bills) Letters of Guarantee Bills for Collection Other Contingent Liabilities Total 19.2 15,77 5,041 ,149 I 19.3 11 19.4 ,322,648 ,7 16 5,834,150,200 10,532,8 r 3,165 4,565,448,355 4,1 89.58 r ,976 19.5 53,594,806,020 50,685,965,804 53,594,806,020 50,'6S5,965S04 19.33 17.63 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 Net Asset Value per share (NAV/share) (Prior year restated) 38 (i) Annexed notes (1 to 50) form an integral part ofthese financial statements 1 +J* Director & CEO Director Signed as per our report of same date t Jfid^fw'@2+<, Hoda Vasi Chowdhury & Shafiq Basak Co. Chartered Accountants Co. Chartered Accountants Dhaka, Bangladesh Date:25.06.2020 7
16. SOCTAL ISLAMI BANK LIMITED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 3I DECEMBER 2019 Note (s) Particulars 31.t2.2018 Taka 31.12.2019 Taka Investment income 20 27,797,425,826 Profit paid on deposits Net investment income Income from investment in shares and securities 21 18.428.552.565 Commission, E,xchange and Brokerage Other operating income /.t 24,955,867 ,159 16.063,978,530 1 462,796,394 760,514,012 22 1,465,828,639 24 1,600,655,71 8 I 687 2,913,701,732 12,282,574,994 Total operating income Operating expenses 180 2,659,646,292 11,551,534,921 Salaries and allowances 25 3,382,863,890 3,133,934,129 Rent, taxes, insurances, electricity etc. 26 Legal expenses 27 573,01 ,660 t1,268,77 5 524,589,668 10,586,493 Postage, stamps, telecornmunication etc. 28 6,750,345 Stationery, printings, advertisements etc. 29 160,996,133 8,412,436 t32,578,322 Managing Director's salary and allowances Directors' fees & expenses 30 Shariah supervisory committee's fees & 1 12,712,000 9,498,684 446,s01 31 expenses 32 Auditors' fees 1 1,920,000 4,539,401 245.903 920,000 57-5,000 317,693,254 320,667,613 Charges on investment losses Depreciation & repair to Bank's assets -r., Zakat expenses t29,665.548 149,522,7 49 1,254,780,502 r Total operating expenses 5,940,464,499 5,408,417,348 Profi t/(loss) before provision Provision for investments Other provisions 3,184,444,138 Other expenses 34 11 23 35 Jt) Total provision Total profit/(loss) before income taxes Provision for taxation Net profit/(loss) after taxation l7 1 2,261,500,825 37 J-) 3,208,081,138 3,134,029,357 1,612,578,681 1,521,450,676 37 ,130,642,835 000 2,294,822,825 3,848,294,749 2,264,863,993 1,583,430,756 Appropriations: 626,805,871 894,644,805 Statutory reserye Retained surplus 7,521,450,676 Earning per share (EPS) (prior year Annexed notes restated) (l 38 1.70 769,658,950 8I 3,771 ,806 1,583,430.756 1.77 to 50) form an integral part ofthese financial statements 1 Director & CEO Director Signed as per our report ofsame date e- '4M"ft,Wt?a & Co. Shafiq Basak & o. Chartered Accountants Hoda Vasi Chowdhury Chartered Accountants Dhaka, Bangladesh Date:25.06.2020 8
17. t- Shafiq Basak & Co. Chartered Accountants Hoda Vasi Chowdhury & Co. Chartered Accountants SOCIAL ISLAMI BANK T,IMITED CASH FLOW STATEX1ENT FOR THE YEAR ENDED 3I DECE]\,IBER 2OI9 Note(s) Particulars Cash Flow from operating activities Invest,nent Income receipt Profit paid on deposits Dividend receipts Fees & commission receipt Cash payrnents to employees Cash payments to suppliers lncome tax paid 31.12.2019 31.12.2018 Taka Taka 27,604.716,354 6.684,507,2s0) 7 60,57 4,012 39 ( (r 682,433,291 (3.395,575,890) (167,746.478) (r4r,050,7s7) 13,745,832) (t,268.621,662) ( 1,3 Receipts fiom other operating activities 40 Payments fbr other operating activities 41 Opcrating profit before changes in operating assets and liabilities Increasc/l)ecrease in operating assets and liabilities 24,828,587.795 14,485.959,692) 462,'796,394 679,730.570 (3,1 45,854. r 29) 1,451.353,042 1,416,218,821 (2.06s,925,283 ( 6,936,471,745 42 r.837.038.55s) 6,543,943,005 Statutory deposits Net trading seourities Investments to other Banks Investment to customers Other assets Deposits fiom other Banks Deposits received from customers Other liabilities on account of customers 43 Trading liabilities Other liabilities 44 Net Cash flo'rv from operating activities Cash flows from investing activities Proceeds fiom sale ofsecurities Payment fbr purchases of securities (28.608.66 r.868) 4.067.668,995 (3,876,630,345) (2.85r.827,r48) 4 t ,7 41 .1 50 t9.635.073.072 (I ,489 18,322,043,775 Purchase/Sale of subsidiaries C. D. E. F. G. (2s,6r4,4r8,696) Net Cash florvs from investing activities Cash flows from financing activities Receipts from issue of debt instruments SIBL Mudaraba Subordinated Bond Receipts from issue ofright shares/ordinary share Dividend paid in cash Net Cash flow from financing activities Net increase/(decreasc) in cash & cash equivalcnts (A+ts+C) Effects ofexchange rate changes on cash & cash equivalents Cash and cash equivalents at the beginning ofthe year Cash and cash equivalents at the end ofthe year (D+E+F) Net Operating Cash Flow Per Share (NOCFPS) (prior year .687,502,141 ) (2.112.340.545 1.196.634.229 Proceeds fiom sale offixed assets Purchases of property, plant & equipment's B. (4.026,921) 11,485,572,030 Sub Total A. (6,032,432,643) (1 ,850) (9,085,342,8,15) (353,73 1,874) (367, l 90,168) (353,731,874) (367,190,468) (8,000,000,000) (1,400,000,000) 3.000.000.000 4.400,000,000 7,400,000,000 8,568,311,900 54,445,609 45 restated) 38(iD 33,474,406,s12 42,091 ,164.021 20.51 (2,052,533,313) 65,766,286 35.46 I, I 73,538 ____]],41.1,405,512_ (1 0.1 7) Annexed notes ( I to 50) fonn an integral part ofthese financial statements dh Dhaka- Bangladesh Date: 25.06.2020 1 W @ naging Director & CEO ".'rlls I
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19. ,\ C tF. o -6 €E vf 0lo ruo ao NO co< o L € t" co V) rn € € N G a\ F FI 'f, EO "/ o\ 00 rn F F t ca r tt) r) rn V) € = ar) ao ra \a s r] t€ t!+ N ra rn ra 0a € FT t) N !l F- r+ a\ 6 N r tl t aa t t E t W) !+ al r) F a a.l al ca oo .<f al rn Fla ut t) at ri U 3 c O L o L L (, s+ + + + N 6 $ r+ al al s Fal N v) 6 6ra r+ = o\ !' € a\ € N F- .I 6 N r a 6 .I o\ .+ al \o ts- t$ t v} r) r) 6 l'. ra N ro F6 N rf, 6I { t) F-. t t) I '+- 00 $ rfl aa t'-. 00 a b0 = V) ra + V) 6l m ln t o\ r-. \ F- c.l F. F- .I t) z F O O o' r d 6i cl ci o. @ ta € O C O =l N i 11- o) r \o € €. d} c.l r @- C ..i @ s o: a 6 al N r a a @ { N N N O. N o\ r t.) oo N a.l r €a r) O N 2 € O O \o r a O O. & .1 ! 6 vl. [o O \o d al c.l -$ F-. O € € N vl €. .1 6 cl € r $ t-- * N 6l o. a- $ r € € a O L F at q ! a a? ,-^ !-t-<: 234?, )>a4 vctrl = I o. al ca r o € = "J- 2 N $ N Ol N <=-da;E -=24 @OO6OOh r. o_ O s \o 2 N \o rc aa N N N aa @ 0a N G O * - r r r i-] 3 €6 r\o xi €m-i 6O +rN @" N 6l 6 .I F. sO - <. a F oi N rco @* a \d .-i i C O o) \c I V) d.) -NNh N cl FN dl r la o- .1 rOON JAA^i ;l! - ii h6NS 2 \N ra + r O a \o m \o O <<i-a coFJtI] ea<7 liis an O € N N r rn o. a a !a o\ N F- t-ra rn i€ \n ro = a # L I L H I I E d o d L O ; d DC >f, AO :o U< '6c oo >b OE roo oc IO co .o € tr € d o E o d (-) =o F d d o od >g ! d o F- F< L E o d 0r o o o o o € o a oa o bJl "U o E o a ]1 o cg o d EO bo tr a tr O 6 o o o o o I € ll. o o 3 q E c0 o ,l o d OO !N 50 cl .o I 6 6 o F o € !d g z o d x o o E ,o o A: J ,l Z d'N =a oa
20. Co . Accountants Hoda Vasi Chowdhury & Chartered Shafiq Basak & Co. Chartered Accountants SOCIAL ISLAMI BanK LIMITED AND ITS STIBSIDIARIES NOTES TO TIIB FINANCIAL STATENIENTS AS r\T AND FOR THB YEARENDED 3l DECEMBER 2019 I l.l The Bank and its activities Status ofthe Banh The Bank was incorporated as a Public Lirrited Company in Bangladesh on 22nd November 1995 under Companies Act, 1994. The Bank is one ofthe interest-free Shariah based Banks in the country and its modus- operandi are subslantially different from other conventional Banks. The Bank within the stipulations laid dorvn by Bank Company Act, 1991 in 2018) and directives (as liom time to time from Bangladesh Bank, provides all types of commercial Banking services. Besides as a matter of policy the Bank conducts its busir.ress on the principles of Mudaraba Musharal<a. amended as received Murabah4 Bai-Muazzal and Hire Purchase transaction approved by Bangladesh Bank. The Bank is listed n,ith Dhaka Stock Exchange Limited and Chittagong Stock Exchange Limited as a publicly traded Company. The Bank carries its Banking activitiesthroughonehundredsixtyone(l6l)branches operatingasperlslamicShariahprevailinginthecountry. The Registered Offlce of the Bank is located at its own premises at'City Center', 90/l Motijheel Comrnercial Area. DhakaI 1,2 000. Internet Banking services SIBL has been providing anytime anywhere Banking service (24171365) through internet Banking since 2013. Recently, SIBL reshaped its internet Banking service with user friendly features like ,,vith a wide range of features as balance inquiry, fund transfer, credit card bill payment, bill payment, and statement view options. SIBL has introduced "SIBL NOW" nrobile app to I'acilitate i-Banking services in the palm of hand. "SIBL NOW" intemet Banking and mobile app comes up with various features including fund transfer (same Bank, other Bank, bKash), utility- bill payment. mobile recharge. credit card bill payment, viewing transaction history, location view ofbranches/booths etc over the internet. 1,3 Agent Banking scrvices The Bank started operation ofAgent Banking Services in 20 I 5. The principal activities of the Agent Banking Services are to provide Banking services to the Bank customers through engagement ofagents who conducts Banking Tratrsaction on behalfofthe Bank under a valid agency agreements rather than Bank's own Tellers/Cashiers to deliver the services within the applicable rules & regulations and guidelines of Bangladesh Bank. 1,1 Enlistment with the stocl< exchanges The Bank subscribed for IPO (lnitial Public Offering) 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) t,td. Subsidiaries of SIBL: I "5 SIBL Securities Limited SIBL, Securities Limited. a wholly owned subsidiary of SIBL, was incorporated as a Public Limited Company under the Companies Act,l991 vide certiflcation of incorporation no. C - 85876/10 dated 20.luly 2010 and obtained its certificate of comftencement 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 Ofice at 3rd floor, I 5 Dilkusha C/A, Dhaka- 1 000. The principal objectives ofthe Company for which it was established are to carry on the business ofstock brokers, dealers in relation to shares and securities dealings and other services as mentioned in the Memorandum and Articles of Association of the Company. 1.6 SIBL Investment Limited SIBL Investment Limited, a rvholly or'vned subsidiary of SIBL, r,vas incorporated as a Public Limited Cornpany under the Companies Act, 1994 vide cedification of incorporation no. C - 867261 l0 dated 30 August 20 I 0 and obtained its oertificate of commencement of business on the same day. The principal objectives of the Company lor which it r'vas established are to carry on tl.re 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 tl're Memorandum and Articles of Association of the Company. Name of the Company 1 SIBL Securities Limited 2 SIBL Investment Limited Paid up Capital Percentage of Share Holding SIBL Othe rs 99.999902% 99.99968% 0.000098% .t 1,230,000,000 250,000,000 Totalcapital 1.1 (Taka) 0.000320% 1,480,000,000 Off-shorc Banking unit (OBU) Bangladesh Bank approved operation of Off-Shore through their letter no. BRPD(P-3)7 44(l 19)1201 Shore Banking Unit (OBU) fi'om 02.05.2012. (OBU) of Social Islarni Bank Limited locatecl at head olllce. 1.11.2010. The Bank has cornmenced the operation of its Ot'f'- l
21. Shafiq Basak & Co, Chartered Accountants Hoda Vasi Chowdhury & Co. Chartered Accountants 1.8 Compliance of International Accounting Standards (IAS) and International Financial Reporting standards (IFRS): with IAS No. Status Presentation of Financial Statements I Applied Inventories 2 Statement of Cash Flows 7 Accounting Policies, Changes in Accounting Estimates and [rrors 8 Events After the Reporting Period l0 A Income Taxes 12 A Property, Plant and Equipment l6 Appliecl Leases t7 llmplol,ee Beneflts Accounting for Government Grants and Disclosr-rre of )n N/A A Applied l9 l A N/A Government Assistance l The Effects ofChanges in Foreign Exchange Rates 2t Applied Borrorving Costs 23 N/A Related Party Disclosures 24 Applied Accounting and Reporting by Retirement Benefit Plans Consolidaled and Separate Financial Statements 26 N/A 27 Applied r,vith compliance of related BRPD Circular Investments in Associates Financial Instruments: Presentation 28 N/A 32 Applied r'vith compliance of related BRPD Circular Applied Earnings Per Share JJ Interim Financial Reporting* lmpairment of Assets 34 Appliecl 36 Applied Provisions. Contingent Liabilities and Conlingent Assets Intangible Assets 37 Applied Investment Property 40 38 Agriculture lied --4!p N/A N/A 4t In compliance rvith IFRS No. Statu First-time Adoption of International Financial Reporting 1 N/A Share-based Payment 2 N/A s Business Combinations 3 Applied Insurance Conhacts 4 Non-current Assets Held fbr Sale and Discor-rtinued Operations Exploration for and Evaluation of Mineral Assets Financial Instruments: Disclosures 5 6 N/A N/A N/A Operating Segments 8 N/A Financial Instruments 9 Applied to the extent of compliance rvith 7 Applied to the extent of compliance with core risk management guideline of Bangladesh Bank. (Financial Instruments) which is mandatorill, effbctive fbr periods beginning on or after 1 January 2019 lvith early adoption permitted (subject to local endorsement requirements. Applied to the context of compliance rvith BRI']D circular no. 15. Dated: 09.11.2009, DOS circular no. 5, Dated: 26.05.2008 and DOS circular no. 5, Dated:28.0 1.2009. Consolidated Financial Statements l0 Joint Arrangements 11 N/A t2 Applied Applied Disclosure ol lnterests in other l]ntities Fair Value Measurement l3 Applied Regulatory Deferral Accounts t4 N/A Rcvenue from Contracts with customers 15 Leases t6 Applied Not Applied (*) Complied while the quarlerly and halfl.),early interim of Bangladesh Securities and reports were prepared during the year as per (BSEC).
22. Hoda Vasi Chowdhury & Co Chartered Accountants 2 2,1 Shafiq Basak & Co. Chartered Accountants Basis of presentation of financial statements and significant accounting policies Basis of preparation of thc financial statements Basis of accounting 2.I.1 The financial stalements of the Bank have been prepared under historical cost convention except investments rvhich are measured at present value and in accordance r.vith "First Schedule" of the Bank Company Act. 1991 as amended under sub' section 38(4) ofthe Act, relevant Bangladesh Bank Circulars ancl International Financial Reporting Standards (IFRSs) adopted by the Institute of Chartered Accountants of Bangladesh (ICAB), the Companies Act, I 994, tl.re Securities and Exchange Rules. 1987 and other rules and regulations applicable for Banks in Bangladesh. In cases, any requirement authorities, the provisior-rs of provisior-rs and circulars issued by Bangladesh Bank difl'ers rvith those of other regulatory & circulars issued by Bangladesh Bank prevailed. 2,1,2 Going concern estimation The Financial Statements, namely, Balance Sheet, Profit and Loss Account, Cash Flow Statements, Statement of Changes in Equity, Statement of Liquidity Analysis and relevant notes to the financial statements and disclosures thereto, of the Bank are prepared under historical cost convention on a going concem basis. Management of the Balk has rnade an estirnation that there are no possibility to liquidate the entity or to cease trading, or has no realistic alternative but to do so. 2.1.3 Statement of compliance The Financial Reporling Act 2015 (FRA) rvas enacted in 2015. Under the FRA, the Financial Reporling Council (FRC) is formed and it is yet to issue financial reporting standards lbr public interest entities such as Banks. The Bank Company Act l99l obliges Banks to prepare their flnancial statements under such financial reporting stanclards. Due to unavailability ofany financial reporling standards by FRC, Intemational Financial Repofiing Standards (IFRS) as approved by the lnstitute of Chartered Accountanls of Bangladesh (ICAB) are still applicable. Accordingll,, the financial statements of the Bank continue to be prepared in accordance with International Financial Reporling Standards (IFRS) and the requirements olthe Bank Company Act 1991, the rr.rles and regulations issuecl by Bangladesh Bank (BB), the Cornpanies Act 199,1. Securities and Exchange Rules 1987. In case any recluirement olthe Bank Company Act 1991. and provisions and circulars issued by Bangladesh Bank differ r'vith those of IFRS, the requirements of the Bank Cornpany Act 1991, and provisions and circulars issuecl by Bangladesh Bank shall prevail. According to BRPD circular no 2 dated 25 February 2019 financial statements for the Bank is prepared on a solo basis l'rom 2019 where OBU information is included in equivalent BDT denomination. Ho'"vever key financial inlormations of OBU is provided as "Annexure G" the solo fi'rancial statements of the Bank. Material deviations flom the recluirements ol IFRS in preparing the financial statemets are as follou,s: i) Investment in shares and securities IFRS: As per requirements of IFRS 9, classification and measurement of inv'estment in shares and securities rvill depend on how these are managed (the entity's business model) and their contractual cash flou,characteristics. Based on lhese lactors it would generally fall either under "at fair value through protit or loss accourrt" or under "at l'air value through other comprehensive income" where any change in the fair value (as measured in accordance with IFRS l3) at the year-end is taken to profit and loss account or other comprehensive income respectively. Bangladesh Bank: As per Banking Regulation and Policy Depafiment (BRPD) circular no. 15 dated 09 November 2009 investments in quoted shares and unquoted shares are revalued at the year end at market price and as per book value o1'last audited balance sheet respectively. Provision should be made 1'or any loss arising frorn diminution in value of investment; otherwise investments are recognised at cost. ii) Revaluation gains/losscs on government securities IFRS: As per requirement ol'IFRS 9 u,here securities will lall uncler the category o1'lair value through profit or loss account. any change in the tair value ofassets is recognised through the profit and loss accounl. Securities designated as arrofiised cost are measured at ef-fective interest rate rnethod and interest income is recognised through thc profit and loss accoLlnt. Bangladesh Banh: Held Ibr Trading ([JFT) securities are revalued on the basis olrnark to market and at 1'ear end any gains on revaluation ofsecurities rvhich have not matured as a1 the balance sheet date are recognised in other reserves as a pafi ofequit5,,. Any losscs on revaluation of securities which have no1 matllred as at the balance sl-reet date are charged in the profit and loss account. Held to maturity (HTM) securities rvhich have not matured as at the balancc shcet date are amorlised at gains or losses on amortisation are recognised in as part of equity _v-,ear end ancl
23. Co . Accountants Hoda Vasi Chowdhury & Chartered Shafiq Basak & Co. Chartered Accountants iii) Provision on investments and off balance sheet IFRS: As per IFRS 9 an entity shall recognise an impairment allowance on advances based on erpected creclit losses. At cach reporting date, an entity shall measure the impairmer-rt allor.vance fbr advances at an amount equal to the lit-etime expected credit losses ifthe credit risk on these advances has increased significantly since initial recognition whether assessed on an individual or collective basis considering all reasonable information, including that which is forward-looking. For those advances fbr which the credit risk has not increased significantly since initial recognitior.r, at each reporting date, an entity shall mcasure the impairment allowance at an amount equal to 12 month expected credit losses that may result from de1'ault events on such advances that are possible rvithin 12 months after reporting date. Bangladesh Bank: As per BRPD circular No.24 ( 17 November 2019), BRPD circular No.6 ( l9 May 2019), BRPD circular No.4 (16 May 2019), BRPD circular No.3 (21 April 2019), BRPD circular No. l5 (27 September 2017), BRPD circular No. l6 ( l8 November 20 l4), BRPD circular No. l4 (23 September 20 l2), BRPD circular No. I 9 (27 Decemb er 2012). BRPD circular No. 05 (29 May 2013) and BRPD circular No. I (20 February 2018) a general provision at 0,25% to 57o under dil'l'erent categories ofunclassifled advances (good/standard) has to be maintained regardless ofobjective evidence ofimpairment. Also specific provision for sub-standard advances, doubtlul advances and bad losses has to be provided at 5ok,20Yo,50% and I 00% respectively for advances depending on time past due. Again as per BRPD circular no. I 0 dated I 8 September 2007 ancl BRPD circular no. l4 dated 23 September 2012. a general provision at lYo is required to be providecl fbr all oftbalance sheet exposures. Such provision policies are not specifically in Iine r'vith those prescribed by IFRS 9. iv) Recognition of profit in suspense and compensation IFRS: Advances to customers are generally classified at amortised cost as per IFRS 9 and profit on advance is calculated by using the elfbctive profit ratc method to the $oss carrying amount over the term of the advance. Once an advance subsequntly become credil-irnpaired, the entity shall apply the eflbctive profit rate to the amoftised cost ofthese advances. Bangladesh Bank: As per BRPD circular no. l5 dated 09 November 2009, once an advance is classified as impaired, v) Other comprehensive income IFRS: As per IAS I Other Cornprehensive Income (OCI) is a component of financial statements or the elenrents of OCI are to be included in a single other comprehensive income statement. Bangladesh Bank: Bangladesh Bank has issued templates lor tlnancial statements which rvill strictly be followed by all Banks. The templates of financial statements issued by Bangladesh Bank neither include Other Comprehensive Income nor are the elements of Other Comprehensive Incorne allowed to be included in a single other Comprehensive Incorne (OCI) Statement. As such the Bank does not prepare the other comprehensive income statement. However, elements ol OCl, i1' vi) Financial instruments In several - presentation and disclosure cases Bangladesh Bank guidelines categorise, recognise, measure and present financial instruments diflbrently from those prescribed in IFRS 9. As such fu1l disclosure and presentation requirements of IPRS 7 and IAS 32 cannot be made in the financial statements. vii) Financial guarantees IFRS: As per IFRS 9, financial guarantees are contracts that require the issuer to make specified payments to reimburse the holder for a loss it incurs because a specified debtors fails to make payment r,vhen due in accordance with the original or modified terms of a debt instrument. Financial guarantee Iiabilities are recognised initially at their f-air value plus transaction costs that are directly attributable to the issue ofthe financial liabilities. The llnancial guarantee liability is subsequently' measured at the higher of the amount of loss allowance for expected credit losses as per irnpairment requirement and the amount initially recognised less, inconre recognised in accordance with the principles ofIFRS 15. Financial guarantees are included within other liabilities. Bangladesh Bank: As per BRPD 15, financial guarantees such as letter of credit ar-rd letter of gr"rarantee will be treated as No liability is recognised for the guarantee except the cash margin. As per BRPD CircularNo.Ol dated 03 January 2018 and BRPD CircularNo. l4 datecl 23 Septernber 2012, the Bank is required to maintain provision at l% against gross off-balance sheet exposures (rvhich includes undrawn investment commitrnents). ofT'-balance sheet items. viii) Cash and cash equivalents IFRS: Cash and cash equivalent items should be reporled as cash item as per IAS 7. Bangladesh Bank: Some cash and cash equivalent iterns such as money at call on shorl notice, treasury bills with maturity of more than three months and prize bond are not shown as cash and cash equivalents. Money at call on short notice is shown separately in the balance sheet. Treasury bills with maturity of more than three months and prize bond are shown under investment in the balance sheet. ix) Non-Banking asscts IFRS: No indication of Non-Banking assets is fbund in any IFRS. Bangladesh Bank: As per BRPD 15, there is a separate balance sheet item named Non-Banking assets existed in the standard format. x) Cash flow statement IFRS: The cash flow statement can be prepared using either the direct nrethod or the indirect method. The presentation is selected to present these cash flows in a manner that is rnost appropriate fbr the business or industry. The method selected is consistently Bank: As per BRPD 15, the is a mixture of both the direct and the indirect methods
24. Hoda Vasi Chowdhury & Co. Chartered Accountants Shafiq Basak & Co. Chartered Accountants xi) Balance with Bangladesh Bank: (Cash Reserve Ratio - CRR) IFRS: CRR maintained with Bangladesh Bank should be treated as other asset as it is not available for use in day to day operations as per IAS 7. Bangladesh Bank: Balance with Bangladesh Bank including CRR is treated as cash and cash equivalents. xii) Presentation of intangible assets IFRS: Intangible assets must be identified and recognised, and the disclosure must be given as per IAS 38. Bangladesh Bank: There is no regulation fbr intangible assets in BRPD 15. xiii) Off-balance sheet items IFRS: As per IFRS, there is no requirement for disclosr.rre of off-balance sheet items on the f'ace olthe balance sheet. Bangladesh Bank: As per tsRPD circular no. I 5 dated 09 Novemebr 2009, ot'f balance sheet items (e.g. Letter of credit, Letter ofguarantee etc.) must be disclosed separately on the face ofthe balance sheet. xiv) Investments net off provision IFRS: Investments shor.rld be presented net of provision. Bangladesh Bank: As per BRPD 15, provision on investments are presented separately as a liability and cannot be netted offagainst advances. xv) Name of financial statements IFRS : As per IAS I : Presentation of financial of financial statements,Components of flnancial statements are deflned as statement offinancial position and statement ofprofit or loss and other comprehensive income. Bangladesh Bank: As per BRPD 15, statement of financial position is defined as "Balance Sheet" rvhilst statement of profit or loss and other comprehensive income is clefined as "Profit and Loss Account" xvi) Charges on tax on retained earnings as per income tax ordinance (ITO) 1984 As per section 16(G) ofthe income tar ordinance 1984, proposed dividend ofListed companies should be disclosed in the Balance sheet as "amount to be distributed as dividend." However there is no such provision in BRPD l4 dated 25 June 2003 and BRPD l5 dated 09 November 2009 and IFRS restrict such presentation in the balance sheet. xvii) Comparative information of changes in equity IFRS : As per IAS l, Comparative information in to be provided r.vith the flnancial statements. Bangladesh Banh: As per BRPD 15, no comparative is suggested for statements changes in equity. xviii) Revaluation gains/losses on government securities SIBL is a Bank running on Islamic Shariah principle. Hence. we do not participate in buying interest bearing Govemment securities. 2.1,4 Investment in shares and securities The Bank investment in dilferent securities has been valued on 31.12.2019 as under: & Shares Shares Bangladesh Govt. Islamic Bond CDBL Share & Preference Share Quoted Bond Unquoted All investment in At cost or Market Value whichever is lorver At cost At cost At cost securities are initially recognized at cost, including acquisition charges associated',vith the investment. Premiums are amoftised 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 ol last audited balance sheet respectively. Provision should be made fbr any loss arising lrom dirninution in value of investment. As such the Company measures and recognizes investment in quoted and unquoted shares at cost ifthe year--end market value (for quoted shares) and book value (for unquoted shares) are higher than the cost. However as per requirements of International Financial repofiing Standards (IFRS)- 9, classification and measllrement of investment in equity investments (shares and securities) depencls on how these are managed (the entity's business model) and their contractual cash flow characteristics. Based on these factors, it would it would generally fall either under'at fair value through proflt and loss accourtt (FVTPL)' or under'at fair value through other comprehensive income (FVTOCI)' (as measured in accordance with IFRS 13) at the year-end is taken to profit and Ioss account or other comprehensive income respectively. SIBL recognises its 'Investment in Shares and Securities' as per IFRS-9 and accounted tbr the required profit/(loss) alter adjustment ofthe value ofshares and securities through profit and loss account. Derivatives A derivative is an investment instrument that consists of a contract between pafties whose value derives fiom and depends on the value o1'an underlying financial asset. In short. these are the instruments whose value depcnds on underlying asset. The underlying asset can be equity, index. commodity, bond or currency. Some of the examples of Derivatives are Forr,vards, Futures, Options and Sr'vaps. As a sharial-r based Islami Bank, SIBL can not take pafi in issuing or purchasing any derivatives. Typical examples of derivatives are futr.rres and option contracts. As a shariah basecl Islami Bank. SIB[, can in issuing or purchasing any OHAKI'
25. Co . Accountants Hoda Vasi Chowdhury & Chartered Shafiq Basak & Co. Chartered Accountants 2,1.5. Investments and provisions In accordance with IFRS 9, Financial Instruments, r'vith the exception of purchased or originated credit (invesrnent) impaired financial assets. expected credit (investment) losses are required to be measured through a loss allowance at an amount equal 1o the l2-month expected credit (invesment)in losses (expected credit (invesment) losses that result lrom those def'ault events on the financial instrument that are possible within I2 months alter the reporting date; or full lifetirne expected cledit (invesment) losses (expected credit /invesment losses that result from all possible def-ault events over the lif'e ofthe financial instrurnent). A loss allowance for full lifetime expected credit (invesment) losses is required for a financial instrument if the credit (invesment)risk ofthat flnancial instrumetrt has increased significantly since initial rccognition, as well as to contract assets or tradereceivablesthatdonotconstituteafinancingtransactioninaccordancewithIFRS l5.Additionally.entitiescanelectan accounting policy to recognise lull lifetime expected losses for all contract assets and/or all trade receivables that do constitute a financing transaction in accordance u,ith IFRS 1 5. The same election is also separately pernritted fbr lease receivables. For all other financial instruments, expected credit (invesment) losses are measured at an amount equal to the l2-month expected credit (investment) losses. However, Provision lor classified and unclassified investment is made on the basis ofyear end revieu,by the management and of instructions contained in Bangladesh Bank BRPD circular No. 24 (17 Novemeber 20 I9), BRPD circular No.6 (19 May 2019), BRPD circular No. 4 (16 May 2019), BRPD circular No.3 (21 April 2019), BRPD circular No.l (20 February 2018). BRPD circularNo.l5 (27 September 2017), BI{PD circularNo. l6 (18 November 2014), BRPD circularNo.l4 (23 Septerrber 2012), BRPD circular No. I 9 (27 December 2012) and BRPD circular No. 05 (29 May 2013). is specilicd at the fbllowing rates: Particulars Rate General Provision on Contingent Liabilitl,/ Non Funded Business 1yo General Provision on Unclassifled Investment t% General Provision on Investment for Small and Medium Enterprise on on General Provision on General Provision on 0.25% )o/ General Provision lnvestlrent fbr Prof-essionals General Provision Investment fbr Hor.rse Financing 1% Investment for Consumer Finar-rcing 50h Investment fbr Shorl term Agri/ Micro credit lYo General Provision on Special Mention Account 0.25o/o-5'r/o Specific Provision on Substandard Investment 20% Specific Provision on Doubtf'ul Investment Specific Provision on Bad / Loss lnvestment s0% 100% As per same circulars mentioned above SIBL has to n.raintain provision @20%,50% and 100% fbr investments classifled as sub-standard, doubtful and bad & loss category respectively depending on the duration oloverdue. As per BRPD Circular No.: l0 (18 September 2007) and BRPD Circular No.: l4 (23 September 2012), a general provision at loZ is required to be provided for all off-balance sheet risk exposures. However, such general provision on general investment & off-balance sheet exposures and specific provisions on classified investments cannot satisly the conditions of provision as per relevant IFRS or IAS. 2.1.6. Off-balance sheet items Contin gent liabilities In accordance with IFRS, there is no requirement to disclose off-balance sheet items on the lace of the balance sheet. Any possible obligation that arises form past events and the existence ofwhich will be confirmed only by the occurrence or non. occurrence of one or more uncertain future events not wholly r,vithin 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; or * the amount of the obligation cannot be measured with suf'ficienl reliability. Contingent liabilities are not recognised but disclosed in the financial statements unless the possibiliry* of an or-r1flow of resources embodying economic benefits is reliably estimated. Contingent assets are not recognised in the flnancial statements as this may results in the recognition of income which may never be realised. I{owever, the amount of cash rnargin is recognisecl as liability. As per BRPD Circular No.: 15, contingent liabilities are recognised as off balance sheet items in absence ol anv recommendation in IFRS. 1' Consolidation procedures (IAS-27) The consolidated financial statements include the financial statements of Social Islami Bank Lirnited and its tr,vo (2) subsidiaries SIBL Securities Limited and SIBL Investment Limited, made up to the end of the fir.rancial year. The consolidated financial statements have been prepared in accordance with International Accounting Standartl (IAS) 27: Financial Statements, International Standards (IFRS):3- Business Combinations and Financial Reporting Standards prepared to a common tlnancial dated Financial Statements. The consolidated financial ber 2018.
26. Co . Accountants 2.3 Subsidiary Hoda Vasi Chowdhury & Chartered Shafiq Basak & Co. Chartered Accountants Subsidiary is that enterprise which is controlled by the Bank. Control exists rvhen the Bank has the power, directly or indirectly, to govern the financial and operating policies ofan enterprise from the date that control commences until the date that control ceases. The financial statements of subsidiary are included in the consolidated financial statements from the date that control effectively commences until the date that the control effectively ceases. Subsidiary Company is consolidated using the purchase method of accounting. 2,4 Functional and presentation currency These flnancial statements are presented in Bangladesh Taka (Tk) r,vhich is the Bank's functional currency. Excepl as indicated, figures have been rounded off to the nearest Taka. The functional cun'ency of Of'f-shore Banking Unit (OBU) is United Stales Dollar and its financial statements have been translated to the presentation currency, i.e Bangladesh Taka following the guidelines of IAS 21, Changes in foreign Exchange Rates. 2,5 Accounting policies, changes in accounting estimates and errors: (IAS-8) The preparation of the consolidated t'inancial statements in conformity with IFRSs requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts o1'assets, liabilities. income and expenses. Actual results may differ fi'orn these estimates. Estimates and underlying assumptions are revierved on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any future periods affected. 2.6 Foreign currency transactions /translation Foreign currency transactions are convefted into equivalent Taka currency using the ruling exchange rates on the dates ol'such transaction(s). Assets and liabilities in foreign currencies as on 31 December 2019 have been converled into Taka currency at the r,i,eighted average of the prevailing buying and selling rate of inter-Bank market as determined by Bangladesh Bank on the closing date every month. Balances held in foreign currencies other than US dollar are translated into equivalent US dollar at buying rates of of New York closing of the previous day. Diffbrences arising through buying and selling transactions of foreign currencies on different dates during the period tiom January to December 2019 have been adjusted by debiting or crediting to the Profit and Loss Account. 2,7 Reporting period These financial statements cover twelve months from 0 2.8 I January to 3 I December 201 9. Adoptation of nerv accounting standards The Bank has consistently applied the accounting policies as set out above to all periods presented in these flnancial statements. The various amendments to standards, including any consequential amendments to othor standards, I,vith the date ol initial application of 1 January 2019 have been considered. A number ofstandards and amendments to standards are effective for annual periods beginning after I January 2019 and earlier application is permitted. However, the Bank has not early applied these nerv standards and yet assess potential impact on its finanoial statements. 2.8.1. IFRS l6: Leases IFRS 16 Leases is effective fbr the annual reporting periods beginning on or after contract is (or contains) a lease exchange for consideration. ifthe contract conveys the right to control the use I January 2019. IFRS 16 defines that a asset for a period ol'tirnc in ofan identified While implementating IFRS l6. the Bank observed that IFRS 16 is expected to have impact on various regulatory capital and liquidity ratios as u,ell as other statutory requirements issued by various regulators. In acldition. there are no dircction liorn National Board of Revenue (NBR) regarding treatment of lease rent, depreciation on ROU assets and interest on lease liabiliq for income ta\ purposes and applicability of VAT on sucl.r iterrs. Irinally, paragraph 5 of IFRS l6 provide the lecogrition exemptions to shoft-term leases and leases for rvhich the underlying asset is oflow value. Although, paragraphs 83 to 88 ofthe Application Guidance (Appendix B) of IFRS I 6 provide some qualitative guidance on low value asset, but these guidance is focused tor.vards moveable asset. Immovable asset like rental ofpremises (i.e. real estate) is not covered on those guidance, nor any benchmark on quantification guidance on low value items have been ag'eed locally in Bangladesh. Hou,ever. the Bank would continue to liaison wilh regulators and related stakeholders and observe the market practice fbr unifbrmiq, and comparability, and take necessary actions in line r,vith regr.rlatory guidelines and market practice. 2.8.2. IFRS l7: Insurance contracts IFRS 17 was issued in May 2017 and applies to annual reporting periods beginning on or after l January 2021. IFRS l7 establishes the principles for the recogr-rition. measurement, presentation and disclosure ofinsurance contracts'"vithin the scope ofthe standard. The objective ofIFI{S l7 is to ensure that an entity provides relevant inforrnation that faithfully those contracts. The Bank has not ye1 assessed in potential impact ofIFRS 17 on its financial statements. 2.9 represents Approval of the financial statements of Directors of the Bank in its 45 I th ended 3 I Decernber 2019. 25 June 2020 approved tl're fintrncial statements of the Btrnk
27. Co . Accountants Hoda Vasi Chowdhury & Chartered Shafiq Basak & Co. Chartered Accountants 2.10. Statement ofchanges in equity The statement ofchanges in equity reflects information aboutthe increase or decrease in net assets or rvealth. 2.11 Liquidity statement The liquidity statement of assets and liabilities as on the reporling date has been prepared on residual maturity. term which has been given in the statement. 2,12 Fixed assets, depreciation and revaluation (IAS-16) of International Accounting Standard (IAS)-16 'rProperty, Plant & Equipments". Depreciation has been charged on reducing balance method except motor vehiclel which has been charged on straight-line rnetl-rod. Depreciation on addition ofassets has been charged fiom the date ofpurchase. Rate Assets have been shown at cost less depreciation as per paragraph 43 ofdepreciation are as under: Particulars Building Rate (7o) Estimated life(Years) 2.5 40 l0 l0 Furniture & Fixtures Office Equipment 20 5 Software 10 10 Vehicles 20 5 Books l0 l0 Revaluation Land and building are revalued as per lnternational Accounting Standard (lAS)-16,'Property, Plant and Equipment'as well as Bangladesh Bank BCD circular letter no. l2 & 18. dated: 20 April 1993 & l5 June 1993, respectively and BRPD circular no. 10 and 09, Dated: 25 November 2002 and 3 I December 2008. The Bank revalued its fixed assets on 20.03.2011 by two separate valuers, namely-'Commodity Inspection Services (BD) Ltci.' and 'Royal Inspection International Ltd.' But the effects on assets have been accounted lor as on 30.03.201 l. Reserve is created by the surn ofrevaluation surplus and depreciation is charged on the revalued assets except land as per the respective rate of depreciation. 2.13 Off-balance sheet exposures In compliance with the ir.rstruction contained in BRPD CircularNo. l0 dated 18 September 2007 issued bl,Bangladesh Bank, provision against the off-balance sheet exposures ofthe Bank as at reporting date has been made as under: Rates Category / status of Off-balance sheet exposures Bangladesh Bankrs Maintained by the Bank requirement General provision for Off-balance sheet exposures All types ofOff-balance sheet exposures 1.00% 1.00% 2.14 Impairment of assets (IAS-36) The policy for all assets or cash-generating units for the purpose ofassessing such assets lor impairrnent is as follor,vs: The Bank assesses at the end ofeach reporting period or more frequently ifevents or changes in circumstances indicate that the carrying value olan asset may be irnpaired, r'vhether there is any indication that an asset may be impaired. If any such indication exits, or lvhen an annual impairment testing lor an asset is required, the Bank makes an estimate of the assets recoverable amount. When the carrying amount of an asset or cash-generating unit exceeds its recoverable amount. the asset or cashgenerating unit is considered impaired and is written down to its recoverable amount by debiting to profit assets are revier'ved & loss accour-r1. Fixed for impairment rvhenever events or charges in circumstances indicate that the carrying amount of an asset may be impaired. Horvever no changes have arisen during the year against impairment. 2.15 Capital/shareholders' equity Authorised capital Authorised capital is the marimum amount of share capital that the Bank is authorised by its Memorandum and Arlicles of Association. Paid up capital Paid up capital represents total amount o1'shareholder capital that has been paid in full by the ordinary shareholders. I-Iolders of ordinary shares are entitled to receive dividends as declared.from time to time and are entitled to vote at shareholders' meetings. In the event of a rvinding-up of the Bank, ordinary shareholders rank after all other shareholders and creditors and are fully entitled to any residual proceeds of liquidation. Details are shown in Note- 15.2. Statutory reserve Statutory reserve has been maintained @20% of profit before tax in accordarce with provisions of section 24 of the Bank Act, l99l (as amended 2018) until such its paid up capital together u,ith the share prernium.
28. Co . Accountants Hoda Vasi Chowdhury & Chartered 2.16 (i) Shafiq Basak & Co. Chartered Accountants Revenue recognition (IFRS-15) Investment income & revenue recognition Profit on investments and deposits are recognized against the investment of fund under Mudaraba, Musharaka. Murabaha. BaiMuazzal and Hire Purchase etc. in line with related approved policy of the Board. Profit on investment ceases to be taken into income when such itrvestment accounts are classified. It is then kept in compensation/rent suspense account and the same is accounted for on cash basis as and when recovered or de-classified as per related BRPD circular. Fees and commission income are recognized r,vhen it is earned. Income from investment in shares and securities is recognized on actual basis except Bangladesh Govt. Mudaraba Bond income which is recognized on accrual basis. Sharing of investment income In case of Investment, Mudaraba fund gets preference over cost free fund. The investment income earned through deployment of Mudaraba Fund is shared by Bank and the Mudaraba Depositors at the predetermined ratio fixed by the Bank. (ii) Profit paid on deposits and other expenses Profit paid on deposits and other expenses are recognized on accrual basis. As per Mudaraba principle of Islamic Shari'ah, the Mudaraba Depositors are entitled to get minimum "15'/o of the investment income earned through deployrnent of Mudaraba Fund as per weightage assigned to each type of Mudaraba Deposit. Moreover, in some Mudaraba deposits, additional rate was allowed over the rate as per weightage. Mudaraba Depositors do not share any income derived from various Banking services rvhere the use of f'und is not involved and any income derived fi'orn Investing Bank's Equity and other Cost Free Fund. Al-Wadeeah Depositors do not share any income of the Bank. Profit is paid/provided to Mudaraba Deposit accounts at provisional rate on hall'yearly/anniversary basis considering overall gror.r'th, performance, and prolitability of the Bank during the year. Final rates of profit of any accounting year are declared after finalization of Shari'ah lnspection Report and cerlilying the Investment Income of the Bank by the Statutory Auditors. 2"17 (a) Provision for taxation (fAS-12) Current tax Provision for income tax has been calculated as per Income Tar Ordinance, 1984 as amended by the Finance Act 2019 considering all applicable allowances and disallowances. (b) f)eferred tax Recognition of deferred tax liabilities The general principle in IAS 12 is that a defbrred tar liability is recognised fbr all taxable temporary diflflerences. There are three exceptions to the requirement to recognise a delbrred tar liability, as flollows: liabilities arising frorn initial recognition of goodwill, liabilities arising from the initial recognition of an asset/liability other than in a business combir-ration which, at the time of the transaction, does not aff-ect either the accounting or the tarable profit, liabilities arising fiom temporary diflerences associated with investments in subsidiaries, branches, and associates, and interests joint anangements, but only to the extent that the entity is able to control the timing of the reversal of the difl'erences and it is in probable that the reversal will not occur in the foreseeable firture. Recognition ofdeferred tax asset A deferred tax asset is recognised for deductible temporary differences, unused tax losses and unused tax credits to the extent that it is probable that tarable profit will be available against which the deductible temporary diflerences can be r-rtilised. r.rnless the deferred tax asset arises from: the initial recognition the time ofan asset or liability other than in a business combination rvhich. at ofthe transaction, does not affect accounting profit or taxable profit. Deferred ta\ interests injoint assets for deductible temporary diflbrences arising from investments in subsidiaries, branches and associates, and arrangements, are only recognised to the extent that it is probable that the temporary dif'f'erence rvill reverse in the foreseeable future and that taxable profit will be available against which the temporary dif'ference will be utilised. The carrying amount ofdeferred tax assets are reviewed at the end ofeach reporling period and reduced to thc extent that no longer probable that sul'ficient taxable profit will it is be available to allow the benefit of parl or all ol'that defbrred tax asset to be utilised. Any such reduction is subsequently reversed to the extent that it becomes probable that suftlcient taxable profit rvill be available. A deferred tax asset is recognised probable thal there for an unused tax loss carryforward or unused tex credit if, and only if, it is will be sufllcient future taxable profit considered against which the loss or credit carryforward can be utilised. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period rvhen the asset is realised or the liability is settled, based on tar rates/laws that have been enacted or substantively enacted by the end ofthe reporting period I'he Bank hds accounted for deferred tax as per Standard (lAS)- 12, "lncorne Taxes"
29. Hoda Vasi Chowdhury & Co. Chartered Accountants Shafiq Basak & Co. Chartered Accountants 2.18 Zakat fund The Bank has created aZakat Fund @ 2.58% fbr the period ended 31 December 2019 on reserve retained through out the year. Hizri Calendar has been considered to calculate 2.5o/o of Zakal Fund. Since Hizri Calendar counts I 1 days less than the English Calendar, the percentage 2.5%o represents equivalent to 2.58Yo of English Calendar. It is to be noled here that shareholders should pay their individual Zakat based on face value (Taka- 10.00 per share) oftheir individual shareholdirrg along with their other zakatable assets. 2.19 Retirement benefits (lAS-19) Defi ned (a) contribution plans: Provident fund The Bank operates a contributory provident fund duly approved by the Income Tax Authority. Both the employer and all eligible employees contribute @ 10% of basic salary to this fund. Trustee board administers this fund. b) Superannuation fund The fund under the caption "Social Islami Bank Limited (SIBL) Employees'Superannuation Fund" came into fcrrce lrom 01 July 1999. It was established to benefit the employees in several ways which includes death benefit, scholarship etc. All employees contribute @1% of basic salary every month along with the same amount contribution by the Bank. Defined benefit plans: (a) Gratuity As per service rules of the Bank, employee who has completed five years regular service , are eligible fbr yearly gatuity @ I (one) month basic salary for every full year ofregular service and employee who has completed seven years regular service are eligible for yearly gratuity @ 2 months basic salary for full year regular service. The Bank has complied rvith International Accounting Standard (lAS) -19, "Employee Benefits" and necessary provisiorr i.e @ 9.5% of basic salary of the legular employees have been made as per actuary valuation of Z.Halim & Associates, Actuarial & Pension Consultants for the period ended 31 December 2019. 2.20 Reconciliation of inter Bank / branch transactions Books of accounts with regard to inter BanVbranch transactions (ln Bangladesh and outside Bangladesh) are reconciled and there are no material dilferences that may affect the financial statements significantly. 2,21 Risk management Today's most risky'nature ol'Banking business has caused the Central Banks olevery country much concerned about the risk oflhe Banks. In this connection every Central Banks have come fonvarded to establish a general framework to defeat the risk f'actors considering the laws ofthe land. Bangladesh Bank has also undertaken an overall core-risk management proiect ur-rder rvhich every Bank shall be bounded to the authoritative covenants to install risk factors affectingthe financial position management system. Social Islami Bank Ltd. has established approved policies covering maior areas such as (a) Investment Risk Management, (b) Foreign Exchange Risk Management, (c) Asset Liability Management Risk (d) Money Laundering Risk (e) Internal Control & Compliance Risk and (t) Infbrmation & Communication Technology Security Risk (g) Internal Audit (h) Fraud and Forgeries to the DOS circular no: 02 ( I 5 February 2012) regarding 'Risk Management Guidelines' fbr Banks. Bank Companies Act l99l (as amended upto 2013) and other guidelines. ofBangladesh Bank. In addition. the Bank is also follorving relevant Bangladesh Bank guidelines on risk based capital adequacy, slress testing and managing the Banking risks in other core risk areas. The Bank has established an independent Risk Management Unit (RMU) as per DOS cirular no:02 (15 February 2012). The RMU conducts stress testing as per DOS circular no: 01 (23 February 20ll), for examining the Bank's capacity of handling future shocks, as well as deals with all potential risks that migl.rt occur in future. The prime objective of the risk management is that the Bank takes well calculative business risks while safeguarding the Bank's capital, its financial resolrrces and profitability from various risks. In this context, the Bank took steps to implemenl the guidelines ofBangladesh Bank as under: (a) Investment risk management ofthe major risks faced by the Bank. This can be described as potential loss arising from the tailure ofa counter patty to perform as per contractual agreement with the Bank. The failure may results from unrvillingness ofthe counter Investment risk is one party or decline of financial condition. Theretbre, the Bank's investment risk management activities have been designed address all these issues. DHAKA 1o
30. Co . Accountants Hoda Vasi Chowdhury & Chartered Shafiq Basak & Co, Chartered Accountants The Bank has segregated duties of the Officers / Executives involved in investment related activities. A separate Corporate Division has been fbrmed at Head Oft'ice, is entrusted rvith the duties of maintaining effective relationship ivith the "vhich customer, marketing of credit products, exploring new business oppofiunities etc. Moreover, invcstment approval, administration, monitoring and recovery functions have been segregated. For this purpose. three separate units have been lormed within the Credit Division. These are (a) lnvestment Risk Management Ur.rit, (b) lnvestment Administration Unit and (c) Investment Monitoring & Recovery Uni1. lnvestment Risk Management Unit is entrusted with the duties of maintaining asset quality, assessing risk in Iending to a particular customer, sanctioning credit, formulating policy / strategy lor lending operation etc. A thorough assessment is done before sanctioning of investment facility at Investment Risk Management Unit. The risk risk analysis. financial analysis, industry analysis, historical performance of the customer" securitv of the proposed credit f-acility etc. The assessment process starts at Corporate Division by the Relationship Manager/ Officer and ends at Investment Risk Management Unit when individual executives. Proposal beyond their delegation are approved / declined by the Executive Commillee and / or the Management. assessment includes borrower In determining single borrower llarge investment limit, the Bangladesh Bank instructions are strictly follo.,ved. Internal audit is conducted on periodical interval to ensure compliance of Bank's and regulatory policies. Investments are classified as per Bangladesh Bank's guidelines. (b) Foreign exchange risk management Foreign Exchange risk is defined as the potential change in earnings arising due to change in market prices. The fbreign exchange risk of the Bank is minimal as all the transactions are carried out on behalf of the customers against underlying L/C commitments and other remittance of single borrower limil shown in note. (c) International Department independently corrducts the transactions relating to foreign exchange and is responsible for verification ofthe deals and passing oftheir entries in the books ofaccount. A11 foreign exchange transactions are revalued at Mark-to-market rate as determined b1, Bangladesh Bank at the month end. All NOSTRO Accounts are reconciled on monthly basis and the managernent for its settlement revieu,s outstanding entry beyond 30 days. Asset liability managemcnt risk Asset Liability Management (ALM) has been defined as a planned, structured and svsternatic process of managing the asset and liability with a view to lead the Bank to a balanced and sustainable grorvth through minirnizing various business risk f'actors market risk and liquidity risk. According to the Bangladesh Bank guidelines and considering the n.rost practical aspects ofthe Bank. an approved policy manual on ALM has been prepared so that it could be fbllor.ved consistently every sphere of the management. To support the ALM process, the Bank has establishecl a committee called "Asset Liability Comrnittee (ALCO)" headed by the Managing Director and holds meeting at least one in every month. ALM Desk, an exclusive firnctional and operational desk for the asset liability management, is ernbodied herewith the ALCO to function under the direcl control o1' Financial Administration Division (FAD). ALCO reviews the liquidity requirement of the Bank, the maturity o1'assets and liabilities. deposit and lending, pricing strategy and the liquiditv contingency plan at the threshold of stress Iiquidity situation. Besides that monitoring and analyzing of significant volatility in net investment income, investment value and exchange earnings etc. are the common and regular,job of the (d) ALM desk. Nloney laundering risk Social lslami Bank Limited (SIBL) has framed an approved Money Laundering Prevention Policy Guideline so that it could be sufficient enough to protect the Bank from tribulations ofmoney laundering. As per Money Laundering Prevention Act, 2002 and Money Laundering Prevention circular, a Central Complianoe Unit (CCU) has been fbrmed at Head Of'fice in SIBL and a designated person has been nominated to supply anv inlormation il required and report any abnormal and suspicious transactions to Bangladesh Bank through CCU. Chief Anti Money Laundering Compliance Officer (CAMALCO) has been designated at head ofT'ice and Branch Anti Money Laundering Compliance Offlcers (BAMALCO) has been nominated at branches. The second man of the sixtv-fbur brar.rches oISIBL has been complying the responsibility for their respective branches as Branch Anti Money Laundering Compliance Officers (BAMALCO) as per the direction of Bangladesh Bank. Know Your Customer (KYC) profile, Risk Rating and Assessment (RRA) profile and Transaction Profile (TP) have been introduced as per the direction ofBangladesh Bank. These profiles facilitate and ease the KYC procedures, risk categoriztrtion, transaction monitoring process! suspicious activity reporting process, selfi-assessment process, independent procedures testing system etc. Proper record keeping procedure has been established also. The action plan regarding the KYC procedures ofthose accounts, which opened belbre 30-04-2002 already has been sent to the Bangladesh Bank. The branches, which are liable to act in accordance with this action plan, has been cornplying it properly and vigorously. Various types of statements such as Quarterly STR, Quarterly KYC statement for legacy accouuts, Bi-monthly statements etc has been sent to the Bangladesh Bank properly. " FIU Reporting System " Version-1.0.3 Software has been installed all ofthe branches as per the direction of central Bank. As a result, the soft copy o1'Cash Transaction Reporl (CTR) and Suspicious Transaction Report (STR) has been sent to Bangladesh Bank properly in due time. The procedure has been conforming as per the action plan, ,uvhich 'nvas given to Bangladesh Bank. It provides to develop and to arvare the staffi Anti Money Laundering. The rnanagement 01'the Bank is all of its rvorkfbrces regarding
31. Hoda Vasi Chowdhury & Co. Chartered Accountants (e) Shafiq Basak & Co. Chartered Accountants Internal control and compliance risk Internal controls ensure systematic and orderly flow of various operational activities within the organization. Norv a day in the biggest and complex business environment, compliance becomes one ofthe nraior concern to the corporate being maior risk involved in non-compliance ofstatutory requirements and operational procedures. To protect and saf-eguard the Bank l'orm any means of liaud and error as,uvell as loss - Social Islarni Bank has introduced the "lnternal control and Compliance guideline arid also established a separate depatlment called "Internal Control ar.rd Compliance Depafiment (ICCD)" at Head Olfice stal'Itcl with son-re experienced senior Banker rest with the porver and duties to train the employees olthe Bank, give direction, monitor. audit and establish control on day to day operational procedures and statutory and non-statutory compliances. ICCD collects diff'erent periodical reports. deparlmental control function check list etc. for documentation and also undefiakes periodical and special audit of the branches and departrnents at Head Ol'llce for rcview of the opcration and compliance o1' statutory requirements and the Board Audit Comrnittee reviervs the reports. (0 Operational risk Operational risk can be defined as the possibilities of losses resulting fiom inadequacy or failed internal processes! systems and people or from external events. Operational risk includes legal and regulatory risk, business process and change risk, fiduciary technology failure. flnancial crime and environmental risk. It exists in some form or in every Bank disclosure breaches. business and function. Operational risk can not only result in financial loss, but also regulatory sanctions and damage to the Bank's reputation. SIBL is successful at rnanaging operational risk with a view to saleguarding client assets and preserving shareholder value. SIBL manages operational risks in the lollor,ving manner: I. II. III. IV V. (g) Risks are identified with ref'erence to the relevant policy rnanuals, processes, and practices; Departmental Control Function Check List (DCFCL) is in place for evaluation of control; Review of saltty and control measures of premises and equipments; Management of technological and information security risks; and Ensuring the maintenance of the Bank's business continuity plan (BCP) and crisis rnanagement policy Legal risks In SIBt,, legal risks are covered by recognizing potential losses from litigation or possible litigation at an early stage and by lormulating solutions for reducing, restricting and avoiding such lisks and creating adequate provision there- against. (h) Business risk Business risk covers the risk oflosses arising from lor.r,er non-interest income and higher expenses frorn the budgeted amount. The business risk is resulted from the market condition, greater customer expectation and or technological development that rnay change compared to the assumptions nrade at the tin-re of planning. Business risk in SIBL is managed by setting clear targets for specific business units, in terms of business volume, income, cost. cost-income ratio, quality ofassets etc. rvith an ongoing process ofcontinuous improvement. (i) Reputational risk Reputational risk is defined as the risk of losses, falling business volume or income as well as reduced value olthe Company arising from business events that may reduce the confidence ofthe customers & clients. shareholders. investors, counterparties. business pafiners, credit rating agencies, regulators and general public in SIBL. The branches and operational divisions are directly responsible fbr reputational risks arising fiom their busincss operations. Reputational risks may also arise fiom a deficiency in managing other risks. AII risk must therefbre be order to uphold the Bank's reputation. The management ensures that SIBL is aware rnanagecl eflbctively in of any changes in market perceptions soon as possible. Accordingly, all business policies and transactions are subjected to as caref'ul cor-rsideration. SIBL takes necessary precautions to avoid business policies and transactions that may result in significant tar, legal or environmental risks. Reputational risk is also f'actored into maior credit decisions that may lead to credit proposal being declined. (j) Compliance risk The success ofSlBL is largely dependent on the trust and confidence olour existing and potential customers, our shareholders, our staff, our regulators and the general public in our integrity and ethical standard. The confldence largely, depends on meticulous compliance with applicable legal and regulatory requirements and internal policies of SIBL. The confidence also depends on confbrrnity with generally accepted market norms and standards in our business operations. The Boatd of Directors is primarily responsible for compliance with all applicable noms and regulations. The Board discharges its responsibilities itself and through delegation of authorities to Executive Committee, Audit Committee and Risk Management Comrrittee of the Board. The objective is to identily any compliance risks at an early stage that may unclermine the integrity and the success of the risks in most appropriate rrHAiG
32. Hoda Vasi Chowdhury & Co. Chartered Accountants (k) Shafiq Basak & Co. Chartered Accountants Information and communication technology security risk According to the latest requirement of the Bangladesh Bank on Core I{isk Management, ICT policy guideline has been newly introduced at Social Islami Bank. The prime objective ol such guideline is to protect data properlies of the Banks li'om any means of loss, unauthorized use, fbrgery and destruction as r'vell as documentation of all ICT rclated tasks to leduce man dependency and increase process dependency. According to this guideline, lC'l departrnent responses, rnonitors, trains and coordinates the total I'f matter with other depafiments and branches so that man and machine could effectively co-opt on timely fashion. The ICT department ensures necessary guidelines / instructions to the Deparlrnents / Branches and monitors status of irnplementation strictly. (l) Internal audit The Bank initiates internal audit ofthe branches and head office divisions on a periodical basis, concurrent basis and surprise inspection is also done to check the compliance status ofthe cost centers ofthe Bank. The intemal audit is supervised under ICCD and a separate division named 'Board Audit Cell (BAC)' also conducts internal audit under supervision and direcl authority of Board Audit Committee. This BAC directly repofts to the Chairman of Board Audit Committee. This way a strong internal audit of the cost centers as well as of Head Office Divisions are conducted to ensure (m) all related compliar-rce. Fraud and forgeries Fraud and Forgeries are a critical dimension, the Banking industry is lacing norv a days. In order to safeguard the Bank fiorn all probable fraud and forgeries that may occur in any respect, the Bank has taken all possible safety security measures that are undertaken under direct supervision of ICCD. Concurrent audit, internal audit, Board audit etc. are done periodically along with surprise audit from time to tirne. Moreover, there are a lot of safety measures initiated at the branch level also. The core Banking solution Ababil is desiged to prevent IT related fiaud and forgeries. Additional risks required to be addressed undr (n) Environmental & social rislr As one of the shariah based Banks of Bangladesh, Social Islarni Bank Limitecl (SIBL) have adopted Environmental & Social Risk Management (ESRM) System as one of its integral parts of lnvestnrent Risk Assessrnent to compute environrnental & social risks lrom our financial fbotprints. SIBL is one ofthe Banks operating in tsangladesh to add "Environmental & Social Management System (ESMS)" rvithin its frarnervork. a global standard to minimize environmental & social risks fiorr the organisational activities. Risks associated u,ith E&S Risk in Credit/lnvestment Management includes I. C-'redit Risk.2.l.-egal Risk,3. Operational Risk,4. Liquidity Risk,5. Reputational Risk etc. Applicability of the guideline includes fbr iur.,estments disbursed to the sectors Agriculture. SME, Corporate Finance. Project Finance and Trade, Retail & Microfinace. All national rcgulations pertaining to E&S governance is applicable while carrying out E&S due diligence of a particular transaction. This means all relevant E&S permits, consents, licenses, and monitoring of E&S paramelers as per the national regulations are to be considered as mandatory compliance requirements for evaluation of a investment application. If clients have rnanagement systems in place as per intemational fiamer'vorks such as ISO 14001 lor environrnental management, OHSAS 18001 fbr occupational health and safety, SA8000 lor socially acceptable practices in the workplace then it is considered as good practices" Adherence to IFC Pertbrmance Standards is considered in case of large project financing as a good practice and opliorral requiremenl. 2.22 Earnings per share (IAS-33) Earning Per Share (EPS) has been computed by dividing the basic earning by the weighted average number ofordinary shares outstanding at the end ofthe year as per IAS 33 Earning Per Share Basic earnings 'lhis represents earnings for the year attributable to ordinary shareholders. Net profit after tax less pref'erence dividend has been considered as fully attributable to tl.re ordinary shareholders. Weightcd average number of ordinary shares outstanding during the year This represents the nr.rmbe ofordinary shares outstanding a1 the beginning olthe year plus the number of'ordinary shares issued during the year multipied by a tirne weighted lactor. The time u,eighting factor is the number of days the specific shares are outstanding as a protion ofthe total numbel ofdays in the year. The basis of computation olnumber of shares is in line rvith the provision of IAS 33 Earning Per Share. The logic behind this basis is that the bonus shares are issued to the existing shareholders without any consideration, and therefore, tl-re nuntber of shares outstanding is increased without an increase in resources generating ner.v earnings. In contrast, other shares rvere issued against consideratiott itt cash or in kind, and accordingly there is an increase in resource generating new earnings. Therefore, the total number of shares issued in 2018 has been multipied by a time weighting lactor rvhich is the nun.rber oldays the specific shares r'vere outstanding as a proportion oftotal nurnber ofdays in the period.
33. Co . Accountants Hoda Vasi Chowdhury & Chartered 2'23 Brgnls after reporting As per IAS - Shafiq Basak & Co. Chartered Accountants period 10 "Events after the Repofting Period" events after the reporling period are those events, favorable and unf'avorable, that occur between the end of the repofting period and the date when the financial statements are authorized tbr issue. Two types ofevent can be identified: (a) Adjusting events after the reporting period which provide evidence ofconditions rvhich existed at the end ofthe repofting period; and (b) Non adjusting events after the reporting period, are those that are indicative ofconditions that arose aller the repofiing period. The details about the evcnts after reporling period is sho'nt,n at note - 49. 2.24 Segment reporting As per IFRS 8 "Operating Segmenls", an operating segment is a component of an entity: (i) That engages in business activities lrom which it may earn revenues and incur expenses (include revenues and expenses relating to transactions with other components of the same entity); (ii) Whose operating results are regularly reviewed by the entity's chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performances, and (iii) For which discrete tinancial information is available. The Bank identifies segment based on its business segment as well as its subsidiaries. Business segment comprises SME, Retail. Corporate and Treasury under Islamic Banking. The Bank reviews the segments at the end of each reporting period to identifi, which of its segments are reporlable and disclose the related information for those reportable segments accordingly. 2,25 \Yorkers profit participation fund and n,elfarc fund SRO-336-AIN/2010 dated 5-10-2010 issued by the'Ministry of L,abour and Employrnent'declares the statr.rs of business of cerlain institutions and companies along with Bank & insurance companies as "lndustrial Undertakings" 1or the purposes of Chapter-XV of the Bangladesh Labour Act,2006 (as amended up to 20 l3) which deals with the u,orkels'parlicipation in Company's profit by r.vay of 'Workers Participation Fund' and 'Welfare Fr"rnd'. This Act requires the "lndustrial Underlakings" to maintain provision fbr workers' profit participation fund @) 5% on net profit. Since this requirement contradicts u,ith the 'Section l1' of the'Bank Company Act 1991 (as amended up to 2018)', Banks in Bangladesh took up the issr-re collectively and sougl.rt opinion from 'Association olBankers Bangladesh Limited (ABB)' on the same. ABB wrote a letter to the'Ministry olFinance'of Government of People's Republic of Bangladesh on 09.03.2016 to draw attention olthe honorable Finance Minister regarding relevance and applicability of Chapter XV of the Bangladesh Labour Act, 2006 (as amended up to 2013) lor Bank Companies and to obtain a direction on the issue. The'Ministry of Finance' revealed their opinion thal WPPF should not be relevant for Bank Companies and therefbre, it should not be applied there. They also sought tbr an opinion on this issue from Bangladesh Bank. Subsequently, Bangladesh Bank agreed on all the logics and legal opinion collectcd by the ABB and expressed their consensus rvith them on 29.1 1.2016. ln this backclrop, the 'Ministry of Finance' has given their instnrction, vide letter no. 53.00.0000.311.22.002.17.130 dated 14.02.2017, for not applying Chapter XV of the Bangladesh Labour Act, 2006 (as amended up to 20 I 3) in Bank Companies. Therefbre, no provision in this regard has been made in the financial statements tbr the year ended on December 31,2019.
34. Hoda Vasi Chowdhury & Co. Chartered Accountants Shafiq Basak & Co. Chartered Accountants 2019 Taka 3 2018 Taka Cash In hand: In local currency ln foreign currencies 27,32 8,950 ATM balance 259,028, i 6,1 Foreign Currencv Amount in FC ?45 USD EURO S4S 84 90 95 06 I 100 22 63 I 9, I 6,675,860 27,328,9s0 25,833,892 2.236 2,949,269,s20 2,344,258,3r5 ofSubsilitry companiu 67 62.025 8-5.08 7 SIBL, Inveshnent Lirnited 5,201 5.201 2,949,359,808 Balance Balance 2,344,325,541 with Bangladesh Bank and its agent Bank (Sonali Bank) I 8,,+48 23,400,872, 33 467,351,t54 334,938.226 Balance with Bangladesh Bank (Note-3.1.1) Balance with Sonali Bank (as an agent of BB) (Note-3. L2) 3.1,1 55,796 6,479,937 I )41 SIBL Securities Lirnited 3.t 63,630,700 2,344,2s8,3rs 20,846,7 50 Consolidatcd balance of cash in hand Social Islami Bank Limited Cosh in hnnd 7)) Exchange Rate 68, I 65 S. Riyal 7c)1 25,833,892 2,949,269,s20 In Foreign Currencies 3(a) ) I SJ 2.662.912.406 28,48 I ,8 I 28,949,172,602 23,73s,810,359 27 ,197 22,980,7 63,770 with Bangladesh Bank (lncluding foreign currencies) In local currency In loreign currencies 3.1.2 Balance with Sonali Banl< (as an agent of Bangladesh Bank) 3.2 Cash Resen'c Requirement (CRR) and Statutory ,425,366 984,393,082 120. I 08.363 28,48r,818,448 23,400,872,733 467,354,154 334,938,226 In local currencv t,iquidity Ratio (SLR) Cash Reserve Recluirenrent (CRR) and Statotory Liquidity Ratio (SLR) hate been calculated and maintatned in accordance wrth the clause (l) of Article 36 ofBangladesh Bank Order, 1972 (as amended upto 2003) and clause (l) ofsection 33 ofthe Bank Companres Act, l99l (as arnended upto 2013)respectivelyandsubsequentDOScircularno:05/200S,DOScircularletterno05/2009,DOScircularletterno.2l12009 no.Ol , dated: 1910112014, MPD Circular no. 0I , dated 2310612011and MPD DOscrrcLrlarletter circular no. 0l , dated 03/0412018. According to latest DOS circular no.01/2014, dated.19l0ll2014 and MPD Circular no 01, dated 0310412018, the statutory cash reserve requirernent (CRR) on Bank's tirne and demand liabilities @5.00% on daily basis and @5.50% on Bi-weekly average basis has been calculated ancl rnaintained with Bangladesh Bank (BB) in current account and @5.5% statutory liquidity ratio (SLR) on the same liabjlities has also been ]nainrained in the tbnn of BD Covt. Islarnic Bond including FC (Foreign Currency) balances r.vith Bangladesh Bank used in BDT, Cash in hand, balance with Sonalr Bank as agent ofBB, balance with Islamrc Refinance Fund A/C and daily excess reserve o1'CRR maintained on a Bi-rveekly average requirement. Both the are maintained by the Bank in excess J.J 3.4 ofthe statutory requirements, Cash Resen'e Requirement (CRR): 5.00% (on daily basis) of average Demand and Time Liabilities Required Reserve I Actual Rescrve held as per GL balance (in local currencv) 21 ,497 .425,366 22,980,7 63.710 Excess Reserye t4,652,509,366 t2 Required Resene currency) Excess Reserve Required Reserve 0,78 I ,757.000 14,129,408,000 i 1,859,933.000 27,4g7,125,366 22,980,163,17 0 13.368.01 7.366 I 1,t20,830,770 1 4,1 29,408,000 ll,859,933,000 30 23 16,347,533,040 11,140,094,311 2,919,269.520 2,344,258,315 ,027 1l Held for Statutory Liquidity Ratio Cash in hand (Note- 3) Balance rvith Bangladesh Bank and its Agent Banks (Note-3. I ) Balance with Sonali Bank (as an agent olBB) (Note-3. L2) Excess reserve ofCRR (Note-3.4) Balance with Islamrc Refinance Fund (Note-6) Bangladesh Govt. Islarnic Bond (Note- 6) 4 I Statutory Liquidity Ratio (SLR) Actuai Reserve held as per GL balance Su rplus 3.6 2.844,9 I 6,000 Cash Resen'e Requirement (CRR): 5.50% (on bi-weekly average basis) of average Demand anfl Time Liabilities Actual Reserve held as per GL balance (tn local 3.5 reserves as shown below: Balance 467,351,t54 13,368,017,366 334.938,226 I 1 ,1 20,830.770 2s0,000,000 250,000,000 30.476,94 1.040 23,000,027,31 I with Other Banks and Financial Institutions (Other than Nludaraba Term Deposit) In Bangladesh (Note - 4.1 ) 2,288,160, r 0 Outside Bangladesh (Note- 4.2) 1,084,292,499 323.695,854 3.372.652.600 1,482,717 ,939 r I,I 59.022,085
35. Hoda Vasi Chowdhury & Co. Chartered Accountants Shafiq Basak & Co. Chartered Accountants 2019 2018 Talta Taka Consolidatcd balance of other Banks and Financial Institutions 4(a) In Bangladesh Social Islami Bank Limited 2,288,360,101 Add: Account Balance of subsidiaries of SIBL teith SIBL Principal Brmch SIBI- Securities l-imited (Current account and MTDR) SIBL InVestment Limited Less: Intq 1,159,022,085 l' 463,760,840 I 123.864,138 t0t,45 t,389 249,84 8,91 7 362.309,45 Componlt balance eliminated SIBL Securities Limited (Current accounl and MTDR) SIBL Investment Lirnited 2,752,120,941 1,s32,71s, l 60 463,760,840 373,7 13,075 362,309,45 I 1 249.848,937 1s,432 54,469 15.432 54,469 Add: Account Balnnce of subsidinies of SIBL with othet Banks and Jinancial instilutions SIBL Securitios Lilnited SIBL Investment Limited 2,288,375,533 Consolidatcd balance with Banks and Financial lnstitutions 23,8(r4, I l8 101,451,389 1,159,076,554 'fhe balanoes are held rvrth the'Principal Branch'olSIBl- bearing current account no: 0002-13300056882 and 0002-13300057058 respectir,cJl In Bangladesh 4.1 a) Current Account Islami Bank Bangladesh Limited 2,088,07 Agranr Bank Lrrnited I r 62,993.496 5,004,080 3,004,42s ) Pubali Bank Limited 2,26t 702,092,443 502,092,500 3.726,896 4,142,926 I3,281,579 4,9 I 5,378 763,6s8,364 s90,31 5,9s1 1,362,705.870 q s1) 29.825,538 q qq) 9,045,702 8,465,9I 7 Mudaraba Short Notice Deposits A1- Aralbh Islami Bank Limited ICB Islami Bank Limited Shah-jalal Islami Bank Lirnited Prime Bank Limited (Islami Bankrng Branch) Bank Asia Lim jted (lslami Banking Branch) Islami Bank Bangladesh Limited Jamuna Bank Limited (lslarni Banking Branch) Pubali Bank Limited (Islami Banking Branch) Exim Bank Ltd. Janata Bank Limrted Southest Bank Ltd. AB Bank Ltd. The City Bank Ltd. Agrani Bank Ltd. First Security lslami Bank Ltd. Union Bank Ltd. c) )41 t1 q61 \)g Rupali Bank Limited NRB Global Bank Limited Trust Bank Limited (ATM settlement Account) Standard Chartered Bank (ATM settlement Account) b) 4,026,312 I 8,634, I 59 Sonali Bank Lirrited 7l)q 7,290 \-7) ) \-7 560,633 4t ,699 74,084,064 7 t ,7 535,697 546, I 55 4,833,279 7 "144,105 12,116,481 8,631"760 19,716 I 0,986 ?1' /1{ 1r6 rsR 3,596,021 3.450,804 1 I 1,955 1,891 41,192,183 15,342,67 12,249,692 1 I 6,8 r 3,902 400.000,000 9,206,257 1,524,701,738 568,706,134 Mudaraba Savings Deposits 2,288,360,r0r r,l Total 3t.t2.2019 4,2 Outside Bangladesh (NOSTRO Account) Current Account rvith I 2 3 4 5 6 7 8 9 SCB, MUMBAI SUMMIT Bank. KARACHI SONALI Bank, KOLKATA MASHREQ Bank, MUMBAI NEPAL BANGLADESH BanK Bank OF BI'iUTAN, PHUENTSHOLING UNITED Bank OF INDIA AB Bank, MUMBAI MEEZAN Bank LIMITED 10 MCB Bank,KARACl{I,PAKIS'IAN I I AXIS Bank LIMITED 12 HDFC Bank LTD.. MUMBAI 13 MASHREQ Bank, NEW YORK, (OBU) 14 MASI-IREQ Bank PSC, NEW YORK, USA 15 SCB, NY, USA Currencv F.C. Amount ACUD ACUD ACUD ACUD ACUD ACUD ACUD ACUD ACUD ACUD ACUD ACUD 437 "019.61 t s,4s8.64 171 ,578.79 s6q ?1s 6R 8,567.36 80,809.1 0 189,437.33 341,814.61 48,309 53 1,805.78 (72,see.7 t) 99,050.35 USD 474,03 2.05 USD 3,1 95,03 8. s6 USD 6,029,s9s.94 balance caried ffi lorward Rate 84.90 84.90 84.90 84 90 84.90 84.90 84.90 84 90 84.90 84.90 84 90 84.90 84 90 84.90 84.90 Taka 3t .102,965 6,406,139 t4,s67,039 48,328,109 727.369 6,860,693 I 6,083,229 29,020,060 4,101 ,479 t53,31 I (6,r63,7l5) 8,409,375 40,24s,321 27 I ,258,77 4 511,920,528 _____2!2,!2!112
36. Hoda Vasi Chowdhury & Co. Chartered Accountants Shafiq Basak & Co. Chartered Accountants Current Account with 37.12.2079 F.C. Amount Currency balance broughl 16 KOREA EXCH. Bank,KOREA Rate Taka 989,020,97s forward USD 948.76 84.90 USD 123,491 .s1 84.90 USD 9,7I 5 50 84 90 431 .92 95 06 4l ,630 95 06 44.869,21)5 80,550 l7 l8 l9 HABIB AMERICAN Rank COMMERZ Bank AG. FRANKF-URT 20 SCB. FRANKFURI' EURO 471,972.69 COMMERZ Bank AG. FRANKFURT SCB, LONDON, UK SCB. TOKYO Bank AL JAZIRA EURO 162,491 .89 95.06 I 5,446,890 22 23 24 GBP 13s,97 5.79 II134 I 5, I 39,253 JPY 28 8,603.00 0.78 RIYAL 360,500.00 22.63 2l MASI-IREQ Bank. PSC MUMBAI ACU EURO I 824.846 224,443 8,1 Total Currency wise Distribution: 59,680 1,084,292,499 31.12.2019 31.12.2018 31.12.2019 Composition 92.19% Composition Taka Taka 999,5 86.463 3I GBP I.40% 0.00v0 I 5, I 39,253 9,649 I]I ]R s.61% 1.20% 6 t, I 82,660 3,897,0S4 YF,N O.02Yo RlYAL 0.7 s% 0.01% 0.03% l00Yo l00oh Foreign Currencv USD/ACU Please see'Annexure-C'lbr detarls comparative statement of31.12.2019 .1.3 0,484,939 & 31.1 2.201 8 98.7 60/0 31.12.201 8 9,676,30s 224.443 8, I 25.08 59,680 I 81 ,725 323,695,854 1,084,292,199 ofloreign currencv amount and rate. Maturity-lyise groupings of balance rvith other Banks and Financial Institutions (Both in Bangladesh and outside Bangladcsh) On Demand 1,8,17,9s0,863 Not more than 3 rnonths Over 3 months but not more than I year Over I year but not lnore than 5 years 1,524,701.738 914,01 1 ,805 568,706, I 34 More than 5 years J,372,652,600 Placement with Banks Placement with other Financral lnstitutions (Note-5.2 & 5.3) Mudaraba Term Deposits with Banks ICB Islamrc Bank Lrmited Union Bank Limited 5.2 1 86,469,299 I 86,6 I 9,899 1,800,000,000 300.000,000 1,986,469,299 486,619,899 Mudaraba Term Deposits with Other Financial Institutions 250,000,000 3ss,000,000 200,000,000 IPDC Finance Ltd. International Leasing Prime Finance & Financial Services Ltd. & Investment Lirnited IDLC Finance Limited Union Capital Limited Bay Leasing & Investment Ltd. Hajl Finance Company Limited Fas Finance and lnvestrnent Limited First Finance Lirnited Islarnrc Finance & Investment Ltd. Reliance Finance Limited Investment Corporation of BD Ltd. (lCB) 5.3 ,939 I ,986,,169,299 486.6 I 9.899 4,839,600,000 5,425,000,000 6,826,069,299 s,9 Placement rvith Banks (Note-s.1) 5.1 I ,482,717 & other Financial Institutions FC Placernent 250,000,000 3s5,000,000 200,000,000 500,000,000 900,000,000 50.000,000 ' 200,000,000 300,000,000 300,000,000 100,000,000 I 00,000,000 2 5,000,000 1,880,000,000 r,000,000,000 4,160,000,000 r,620,000,000 1,000,000,000 5,425,000,000 with Banks & other Financial Institutions National Bank Linrited NCC Bank Lrrrited I 6q,900.000 s(lq 7nO nno 67e,600,000 5.4 Maturity-wise groupings of placement lvith Banks and other Financial Institutions On Dernand 4,3 I 4,600,000 3, 1 20,000.000 Not nrore than 3 months 2,300,000,000 I More than 3 months but less than 1 year More than I year but less Ihan 5 icars 2 5,000,000 186,169.299 ,750,000,000 855,000,000 1 86.6 1 9,899 More than 5 years 6,826,069,299 s,9l 1,61 9,899
37. Hoda Vasi Chowdhury & Co. Chartered Accountants 6 Shafiq Basak & Co. Chartered Accountants 31.12.2019 3r. I 2.20r 8 'Iaka Taka Investment in Shares & Securities Government Government Bond (lslamic Investtnent Bond) (Note 6.1 ) 7 Years Treasury BOND (5%) 1 3,000,000,000 3I 7 Years Treasury BOND (0%) I 8,950,000,000 9,300,000 23,000,000 13,442,300,000 BD Covernrrent Islanric Refinance Fund 8,950,000,000 250,000,000 250,000,000 13,692,300,000 9,200,000,000 Others Investment in Shares, Quoted (Note 6.2) Investment jn Shares, Unquoted/bond (Note 6.3 & 6.4) 64 t,262,505 4,t)07,936,195 3,292,s13,501 5,549,1 99,300 3,999,449,443 706,935.936 (122,!1s,819) (il2,8e8,604) 5,426,683,481 3,8 l9,l 18,983,48r r3,086,s50,839 Fair value adjustment through profit or loss (FVTPL) (note: 6,5) Value of Invcstment in Sharcs and securities. Others Grand Total Maturity-wise Grouping of Investment in Securities: Upto one month 4.568,146,686 Not more than 3 months 2,250,000.000 3,050,000,000 Over 3 rnonths but not more than 1 year Over I year but not more than 5 years 6,9s0,000,000 2,600,000,000 3,609,000,000 More than 5 years 1 .7 41 ,236.795 19,118,983,481 6(a) 4, I 44,037.33 I I ,282,5 r s, r 07 2,009.998.400 13,086,550,839 Consolidated Investment in Shares and Securities Social Islami Bank Limited Govcrnment Investment in Government Islamic Bond BD Government Islarlro Refinance Fund 7 Years Treasury BOND (5%) I 3,000,000,000 250.000,000 I 7 Years Treasury BOND (0%) I 8,950,000.000 250,000.000 9,Juu.000 I 21 n00 000 Others sectors Add: Investment in Shares and Securities by subsidiary companies SIBL Securrties Lnnited 13,692,300,000 9,200,000,000 s,426,683,481 J,886,ss0,839 I SIBL Investment Limited 54,433,823 12,469,928 t 69,296,400 Less: InterCompanv balancc eliminated I nvesl ments i n S u bs i di ari es Investment in SIBL Securities Limited Investment in SIBL Investment Limited 1,229.999.000 249,999,400 249,999,400 4,170,.115,304 2,519,022,367 t7,862,775,304 tt,749,022,367 Consolidated Investmcnt in others sectors 'l'otal consolidated halance of Investment in shares and securities 6.1 1,229,999,000 Bangladesh Bank introduced a new type of inveshnent opportunity solely for the purpose of Shariah Banks in the year 2005 being rnherent litritation on the part o1-Shariah Compliant Banks to take part in buying and selJrng of treasury bill etc as a ver) common fbrm of treasury rnanagement. The lund has treen operated under Mudaraba PrincipJe and are being used as a part 01-SLR (Statutory Liquidity Requirement) vide Bangladesh Bank Circular Letter ref. no: AMA/AUSOBVSANCHAY/S-03l2ot)11262 dated September 2, 2004. 'fhe mobilized fund liom Islarnic Bond is invested by Bangladesh Bank and a portion ofrealized profit is distributed alnongst the bond holders as per mudaraba principle o1'lslamic Shariah on the basis ofthe tenure ofthe bond. So, the rate ofreturn tiotn lslarnic Bond is t.lot prefired rather dependent on t'und deployment by Bangladesh Bank. 6.2 Invcstment (Cost) in Shares (Quoted) National I-if-e Insurance Ist Mutual Fund BD Com ICB Sonali Mutual Fund Aamra Net ICB AMCL 2nd Mutual Fund 3, I 03,399 3.7 56,097 1,765,607 9,984,5 73 I 0,663,324 881,150 Aamra Tech 68,249,571 SEBL 1st Mutual Fund IFIC 1ST Mutual Fund Trust Bank IST Mutual FLrnd I ST Janata Mutual Fund AB lst Mutual Fund Al-Arafah Islami Bank Limited Exim Bank Lrmited Islarni Bank Lirnited Titas Gas Limiled 20, 1 06,1 90 1,850"435 ,099,672 7,043,696 7 t,393,658 I I 2,315,482 carriedforward 0,537,366 3,408,500 4,693,330 6.921,168 1,990,000 2,039,01 I 15,r98,s13 21,354,909 72.998,131 78,823,665 1 balance 0,985,834 191,12-1,409 3,8 85.373 t92,63t,219
38. Shafiq Basak & Co Chartered Accountants Hoda Vasi Chowdhury & Co. Chartered Accountants 31.12.20r 8 37.12.2019 balance brought forwud Taka Taka 191 ,4 23,409 192,63 1,249 I 5,559,985 MJL Bangladesh 3,356,873 1 Desco 6,072.92 8 7,867,490 Padma Oil 8, I 62,374 12,846,91 5 r3.361,4r4 BSRM Steel 9,589,363 I 864,560 Bashundhara Paper Mills Ltd. 4S Jamuna Oil )q) 5tR 44,165.2e2 3,776,4 Grameen Phone I Onon Phanna Lirnited 69.498,37 q olls Linde Bangladesh Ltd. I I,514,347 2,000 20,568,415 I 5,820.000 21,511,687 I 2,5 I Bexi mco Pharrnaceutical Apex Foot Wear Lirnited Square Textile 4,995,428 1 0,989,8I I 2,35 8,439 2,510,23l. Summit Porver Limited 72,8,+ I .854 BBS Cables t2,'199,90l 65,956,243 2,8 80,00t) Porvergnd Conrpany Limited 18.2,+,1,575 ) )11 \1) Agni Systems Ltd lntraco Refireling Station Ltd. KPCL M Petroleum 243,610 6,95 I ,6,15 r t,152,6.18 27 l6 641,262,505 706,93s,936 l ,s69,450 500,000,000 1 ,569,450 500,000,000 Investment (Cost) in Shares ([]nquoted) CDBI- Share Orion Infiastructure Ltd. (Cumulattve) Orion Infrastructure Ltd. (Redeemable) Lub-RREF (BD) Lirnited. Pre-lPO Investment in subsidiary: SIBL Securjties Limtted lnvestrxent in subsidiary: SIBL Investtrent I-,ir:rited ArvqalProperties Investment lund (APtF) Central Counterparty Bangladesh Ltd.(CCBL) 6.4 d)t 7,800,000 RAK Ceramics Limited BSRM Ltd. Bata Shoe Company 6.3 8 )r q41 )i? 27,618,t05 Square Pharmaceuticals 8 210,9-76"321 1 1,229,999.000 t.229,999,000 249,999,400 249 ,999,400 561 66,968,945 I 66.968.945 37,500,000 2,407,936,79s 2,762,s13,s01 1,500,000,000 1,000,000,000 lBL Mudaraba Subordinate Bond Total Investment (Cost) in Shares .916.712 52.000,000 I Subordinated Bond FSIBL Mudaraba Subordinate Bond (2nd & 3rd Bond) t 69,900,000 52,000,000 1 5 30,000,000 2,500,000,000 530 1,907,936,795 3,2 (Unquoted)/Bond 'SIBL Securities Limited' and'SIBL Invcstment Limited' that were incorporated on 20 July 2010 and 30 August 2010 respectnely vide certificate of incorporation no: C-85876/10 afi C-867261 10. SIBL holds 12,299,990 and 2,49g,gg4 nos. shares ol'SIBL Securities Limite<l' and 'SIBL Investment Limited' respectively u'rth a face value of Tk 100 each and also lnvestment in Subsidiales represents the amounl invested in representing holding of99.99% shares in both the subsrdiaries. AwqafProperties Investment fund (APIF) is operated by lslarnic Developntent Bank (lDB). APIF provides financing for the development ofArvqaf ofAPlF is to develop and invest irr accordance properties both in member countries and Islatric cornrnunities in non-member countries. The ob.iective with the principles of Islarnic Shariah, in Awqaf real estate propefiies that are socrally, economically, and financralll, viable, rn metrber countries ol IDB and Islarnic communities in non+ternber countrjes. Its main activrties are poverty alleviation programmes, disaster reliel-. ttee health services. ilnparting religious and contemporary education, heritage, cuiture, and environment. 6.5 Details of Shares & Securities in quoted and unquoted other than in subsidiaries 31.12.2019 ka Particulars No. ofShares/ l\Iarket price per Securities Shares Fair value/ Market value as on 3l-122019 Ouoted Shares 204,731 37.60 7,697,886 Aamra Tech 2,679,4s6 23.20 62.163,319 SEBL lst Mutual Fund IFIC l ST Mutual Fund Trust Bank lST Mutual Fund l ST.Ianata Mutual Fund AB 1st Mutual Fund Al-Arafah Islamr Bank Lirrited Exim Bank Lrmited Titas Gas l-irnited 1sl ,67 5 1,690,398 10.00 1,516,750 460 7,775,831 1,600,840 4.80 s26,246 430 7,684.032 2,262,858 1,066,666 4. I0 4,373.331 Aamra Net M.TL Bangladesh 02,000 17.20 1,300,000 10.10 I 3,1 2,010,000 30 90 62,1 09,000 155,714 63.30 9,856,696 l balance carried forward I ,754,400 30,000 180,324,162 Cost price as on 3l-12-2019 9,984,s73 68,249,517 1,8s0,43s .099,672 7,043,696 2,31s,482 4,693,330 1,990,000 15,198,513 72,998,t31 5,559,98s Fair value adjustment 7 1 206,983,394 (2,286,688) (6,086,198) (333,68s) 676, I 59 640,336 (52,624) (319,999) (23s,600) (2,068,513) (10,889,131) (5,703,289) (26,6s9,232)
39. Hoda Vasi Chowdhury & Co. Chartered Accountants Shafiq Basak & Co. Chartered Accountants 31.12.2019 Taka Particulars Ouoted Shares No. of Shares/ Market price per Securities Shares Fair value/ lVlarket value as on 3l-122019 balance brought forward Desco Fair value adjustment I 80,32,1, I 62 206,983,394 50,320 37 00 5,561,840 6.072,t)28 36,245 192.20 6,966,289 8,162,37 4 223,062 39.20 8,744,030 l 3,36 r ,41 4 237,67t 4,60s,934 l4L90 1 Padma Oil BSRM Steel Jarnuna Oil Orion Pharrna Limited Cost price as on 3t-12-2019 26.90 33,725,515 1 27,618,105 (s,3 1 s.1 05) 7,800,000 ( r ,486,000) (4,704,000) 117,700 190.00 22.363,000 220"000 28.70 6,314,000 60,000 48.80 7,808,000 I 2,5 12,000 Bexirnco Phannaceutical 200,000 69.40 3,880,000 I 5,820,000 Apex Foot Wear Limited 16,905 223.t0 3,77 I ,506 ,+,995,428 Square TextiJe 50,000 31 00 1,550,000 2,3 2"000 696 10 1,392,200 2.51 0,23 1,848,692 36.30 67.t07.520 37,500 58 80 8,085,000 60,000 44.60 2,67 6,004 00,000 15.10 1 Bata Shoe Cornpany Surnmit Power Lirnited BBS Cables Powergrid Company Lirr: ited I Agni Systems Ltd I Intraco Refueling Station l-td M Petroleum 140,000 Preference Shares Orion Intiastructure Ltd. (Currulative) Orion Infiastructure Ltd. (Redeernable) 10,000 1 5 (r (808,43e) (r,r r8,03t) I 72,84r,8s4 12,499,90t (s,734,331) 2,8 80,000 (204,000) (167.s72) 13.60 243,640 63.80 22,932,000 27,474,316 (4.4r4.e0r) ( 611,262,505 500,000.000 s00,000,000 69,900,000 669,900,000 I 1 07,640) (4.542.316) 518,746,686 r ,940,000) (t ,223,t)23) 8,439 ,510,000 1 3 6,000 50,000,000 (rr ,567,023) (45.598,746) Square Pharmaceuticals I 96,08s) (4,61 7,384) r 69,498,37 RAK Ceramics Lirnited BSRM Ltd, I (5 r r,088) ( l ,1 15.292,538 23,899,625 1 (26,6s9,232) (t22,srs,8r9) 69,900,000 669,900,000 Unqoted Shares/ Bond CDBLShare 57l,l8l Lub-RREF (BD) Lirnited. Pre-lPO Awqaf Properties Investtnent t'und (APIF) UBL Mudaraba Subordinate Bond Central Counterparty Bangladesh Ltd.(CCBL) FSIBL Mudaraba Sr.rbordinate Bond (2nd & 3rd Bond) Grand Total 6.6 5 1 1,569,450 1 ,569,450 2,000,000 66,968,945 1,000,000,000 52,000,000 66.968,945 I 1,000,000,000 37,500,000 37,500,000 r,500,000,000 2,758,038,39s r,s00,000,000 2,758,038,395 3,946,68s,081 4,069,200,900 (12 Industry wise classification ofshares at market price Quoated shares Banks to )'tq )q) 2l ,596,1t6 Mutual Funds I 29,3 I 8,663 39,002,68 Others 184,341.t2s 627.653,963 641,262,s05 6.7 Cost of shares and securitics of quoted and unquoatcd, other than investment in subsitliaries Farr value ad.jushrent {Profit/(Loss)} to be tnade through proflt and loss account Value of sharcs and securites, Quoted and linquoted other thfln int,estment in subsidiaries 4,069,200.900 I 706,93s,936 2,51 9,r15 I ,043 (r22,sr5,8r9) (r r2,898.604) 3,946,685,081 2,406,ss2,439 Investments in Shares and Securities' other than investments in sr.rbsjdjaries under the category 'Financial Assets at fair value through profit or loss (FV'|PL) has been recognised at fair value and the unrealized profit or loss i.e. difference between fair value and cost has been charged to profit and loss account and value of the investtnent has been reduced by the same amount as per requirements (IFRS)-9. Financial lnstrurnenls of International Financial reporting Standards Investments 7 In Bansladesh General Investments etc. (Note-7.1 ) Brlls purchased and discounted-net (Note- 7.2) 2s2,03 8,985,230 3. I 34,654,364 230.434.994,591 2,718,264,390 Outsidc Balqlatlesh BiJls purchased and discounted-net (Note- 7.2) 7 (^) 9,094,950.05 s 264,268,589,6s0 5,500,9 I I ,966 238,6s4,170,9s3 252,038,98s,230 230,434,994,s97 Consolidated Investment General lnvestments etc. Less: InterConrpany balance eliminatcd SIBL Securities Limited Quard Investment with SIBL- Principal branch 800,000,000 800,0 SIBL Invcstment Limited Total consolidated general invcstment Bills purchased and discounted-nct Grand total 2s1,23888s,r30 229,634994$ 72,229,604,419 263,468,589,649 8,2I9,176,356 237,854,170,953
40. Hoda Vasi Chowdhury & Co. Chartered Accountants Shafiq Basak & Co. Chartered Accountants 31.12.2019 31.12.2018 Taka Taka Maturity wise Classification of Investments: With a residual maturity of Re-payable on Demand 27,035,63r,r39 29,139,622.930 Not more than 3 months 55,622,290,35 48.896,931,r Over 3 months but not lnore than 1 year Orcr I lerr but nol rnore than 5 lelrs I 109,233,662,901 5.1,543,539,000 45.67 4,626.400 Over 5 years t0.992,t)42,000 264,268,s89,649 1.1 l6 I I 6,07,1,1 87, I 59 5,709,328,000 238,654,170,9s3 Mode-Wise Investment (General) a) In Bangladesh Musharaka 285 Murabaha Mudaraba 1 347 "826,612 "714,917 3,889,304,r r l .1 1 0 ,9C)9 ,296 2,2t3,479.499 Bai-Muazzal 2,06r,86r,392 175,173,237,666 57 ,973,557 56,906,637,122 ,112 54,179,810,323 Quard Bai-Salarr 8,648,70s, r 03 6,850, I 81,947 931,350,622 775,677,s19 Staff Loan 2,43 r ,330,908 2,3 85,978,089 Ijarah 609.610.142 660,073,348 Vrsa Card 727 898 Hire-Purchase Sirkatul Meelk 1 71 252.038.985.230 230,434,994,s97 Mode-Wise Investment (General) b) Outside Bangladesh Musharaka Murabaha Bat-Mtrazzal Hire-Purchase Sirkatul Meelk lnstallment Investment Scheme Quard Bai-Salarr Others 1' Bills Purchased and discounted In Iand Bill Purchase 3,134,654,364 2,718,264,390 Oulside Bant!lndesh Foreign Bill Purchased 85,750,964 Murabaha BilJ of Exchange Baim-Wes bills I ,455,670,1 0s 7 86 I 9,094,950,055 7.2.1 5,500,9 I 1,966 n229,604,419 Grand total of net Bills Purchased and Discounted 58,660.057 1,655,274.938 8219,176 Bills Purchased and Discounted Payable in 4,698,t33.914 8, I 37,099,405 4.5t 1,086,108 12,835,233,319 8,552,39,1,618 Bangladesh Payable outside Bangladesh Cross Bills Purchased and Discounted Less: Proflt receivable on Bills Purchascd and Discounted Net Bills Purchascd and Discounted 605,628,90 4,04 I ,308.5 I 0 l 333,21 8.262 12,229,604,419 8,219,I 76,3s6 Maturity wise Classification of Bills Purchased and Discounted: On demand Over I nronth but less than 3 months OVer 3 months but less than I year I 2,445,t)20,884 r,643,835,27 6,1 14,802,2r0 4,t09,588,t78 3,668,88 I,326 2,465,7 52,907 year or more 12,229,604,419 7,3 r Investments on the basis ofsignificant concentration Investments to allied concern ofDirectors Investments to Executives & Staffs Investments to Customer Groups Industrial Investment Others 31.12.2019 0.00% 8,219,176,3s6 31.12.20r8 0.00% 0.930h 1.09% 57.28% 41 .79% 0.00% 100.00% 58.62% 40.29% 2,460,432,039 2,602,680,866 ,365,526,851 110,142,630,7 59 )39.892,562.262 264,268,589,649 2 I -s I 96, I 58.927,825 0.00% 100.00%
41. Hoda Vasi Chowdhury & Co Chartered Accountants Shafiq Basak & Co. Chartered Accountants I 31.12.2019 r. 12.20 r 8 Taka Tal<a Investments allowed to individual customcr exceeding l57o of Bank's total capital: Number ofClient with amount ofoutstanding Investrnent to rvhonr Investrnents sanctioned exceeds 150/o oftotai capital ol-the Bank is reported hereunder. Total capital of the Bank was Tk. 2,790. I 8 Crore as on 3l .12.2019 and was used as base figure to calculate the single part), exposure funded liability, and such limit was fixed at Tk. 418.53 crore (2,790.18 crore x l57o ) till 31.12.2019. [t is mentioned limi! here that as per Bank Companies Act, 1991, single parfy exposure lirnit has been fixed at l5% lor funded and 20% non-flunded investment based on capital inaintained for non export oriented clients whereas I 50% f-unded and 350% non-filndend limit for I 00% export onented cltents. crore+ 02 Nit Not applicable Total Principal outstanding amount to such customers at end olthe year (Funded) Nurnber ofsuch types ofcustomers 809.90 Amount of Classified Investments thereon Measures taken for recovery 438.58 crore 0l Nil Not applicable * As per BRPD circular no. 2. dated: I 6 January 201 4, single palty exposure linrit 1 5% is not applicable lor the client doing business in power sector The principal anrount lirnit for such client ls 25% oftotal capital, i.e Taka-697.55 crore as on 31.12.2019. 7,4 Customer group and industry wise classification of Investment tn 2019 Sector Amount 63 .698.117,346 Composition 20.40% 1.86% 142% 1.51% 24.10% 528,101236 - I 8.368.360.0.18 6.9s% Cornmercial lending 53 32 Elpr4 t!q!1LC House 590 43, '23 743 nvestrnlnrlqgarillst Small and Medium S.1r.lq4 !4f ?n ,991 ,981 577 Micro lnvestment Other Investments Ofl'-shore Bankrng Unit Executives & Staffs ofSIRL 2.213.479,499 2,460,432.039 Itural Industries 3,368,2_s8,I 74 & AIlied Industries 33,741,188,31 & Allied Industnes Food I 12,615.212.920 Phanraceutical Industries t.568,322,953_ 3,t97 8,177,3942 t50 etc. struction Industries and Cerarnic Industries _ ll ervice Industries and Comrnunication Industries Other I I ,668,99 r 3,192,320,s00 29 r43 7 264,268,589,649 Total 2018 Amount Composition 25.57% I 1.67% 3,976,655,38 0.20% au% 6 - 3,830,220,008 1 6A0/o 2,699,896,506 l llly 55,648, I 60. 786 23.32% 366. ,793 10,274,440,180 4.31% 2,061,861 ,392 0.86% 0.t5% 0.93% 2,602,680,866 r 09% |.27yo 4,689,228,940 \26% l2.17Yo 993 4.77% 9,664,899,008 0.59Yo t,606,821 ,77 4 1.2lYo I 3.09% l.37yo 4.30% ll4.190/o 4.0s% 0.67% l0 8.743,033,84 0 4t% 3.660/0 I 1.98% 9,114,s01 1.21% .1 3.91% 1 33% 96 3.179,499,691 1t\o% t9 8.02%o 238,654,170,953 100.00% 100.00% 7.5 Geographical Location-wise Classification of Investments nt in Taka 2019 Sector Amount 20 r8 Composition Amount Composition Within Errylqlecl, a) [n Rural Areas t0 00% 26,431,716,557 b) In Urban Areas Sub-lotal (a+b), Outside Ban gladesh Total s0 90.00% 2 261,268,s89.649 I00.00% 264.268.s89.649 100.000/. 211 r,.190 89 100.00% I 100.00% 7.6 Division-wise Investments mount in Division As at 31 December 2019 Amount Dhaka Iitltggts so.4J8 Sylhet j jj.028 596.444,57 5 73.670k 19.t0% 0.23% Rajshahi 6,474,179,583 2.1s% Khulna 6,245.768.176 2.36Yo ) )47 )\( O)a 0 86% 60 0.53% Rangpur Barisal Mymensingh Total _ I ,403,466,1 141 116 264,268,s89,649 December 2018 Amount Cornposition 679.083 3I As at 111 ,481 ,31 Composition ,863 42,056,600,930 f 5 6,600,8 I 7,273 ll ,!q 2.77'yo 5,469 2.79% 4.91% 0.15% 238,654,1 70,953 100.00% 182 1 ,067, 785 il 0.19% 100.00% 17.62% 0 15% 83 r ,6s7 i 74.37% 0.14%
42. Hoda Vasi Chowdhury & Co Chartered Accountants 7.7 Shafiq Basak & Co. Chartered Accountants 31.12.2019 3l.12.20r8 Taka Taka Investments (Classifi cation wise) flnclassificd Standard 235.104,417,478 Special Mentioned Account 2 1 5,1 23,635.967 6,951.1 13,3s0 567,954.276 Substandard 658,,+69,81 9 6,15,93 7,405 Doubtl'ul Bad or Loss 282,521 .461 Classilled I Standard (short tenn agri / rnicro inv.) Special Mentioned Account (short term agri/ micro inv.) Substandard (short term agri / micro inv.) r 4.420,889 7 t2,67 3 ,9 r 5,84 I ,760 2,008.9 I 3,844 3,481, r84 40,782,857 7 I 59,771 0,s46,59s r ,1 56,8 I 7,868 Stafl lnvestment 09,864 40,207"1 I l 2,017,6113,.140 2,{160,777,414 2,160,432,039 2,602,680,866 264,268,s89,649 238,6s4,170,9s3 Particulars of provision required for general investment Unclassifi ed (Excluding OI'1--balance sheet exposures) 3,91 I,552,438 Classified 7 595 557 Unclassified- Off-balance sheet exposures 1R6 490,293.517 I 7.8.1 l 6,9 I 170 Doubtful (short term agri / micro inr,.) Bad or Loss (short tenn agriAricro inv.) 7.8 738,768. I 36 6.493,952,059 1,997,403,200 I ,826.099.534 6,398.009,498 464,963,83 8 8,689,072,870 Detail Particulars of Provision for Investment Rate Unclassified Standard 1% Statf lnvestment 0% Consumer Finance (Other than HF and LP) Small and Medium Enterprise 3 59,030,636.660 5 8.809,433,72 8 2% 9,893,256 Share 2Yo 2,268,580,046 SMA lnvestment (Same as UC i.e 0.25%, 1%,2%,to 5%) r,s06,496,405 32,905,606 50,748,67 t47,023.581 132,271 ,330 20,416,068 2,04 1 ,606,809 Loan for Professionals (LP) Unclassified Off Balance Sheet Items 3,590,306.167 658,1 12,1 t6 s% 025% t% Housing Finance (l{F) Provision Required Base for Provision I 97,865 45,37 I ,60 I s% {A 17) O)O 56 1 7) q)q t% 49 ,029 ,3 57 ,7 00 490.293,577 l 28.727.868 28, I 65,36 I 46,93 5.696 1 2"66s,065 464,963.83 8 Classified Substandard 20% Doubtful 5}Yo Bad or Loss 100yo 505,62 t ,649 7 8,908,721 7,454.232,684 I 0t.t 24,330 R) ))1 a77 39,454.362 272,191,051 h 041 4gg 95l 7.454,232,680 11,977,498,969 Provision Required (Short term Agricultural & N{icro Credit) Rate Base for Provision 8,668,886,8t5 Provision Required Unclassified Standard (short term agn /rnicro credit) 1.0% I ,9 I 5,84 I ,760 I 9,1 58,4 I 8 20,089. I 38 Classified Substandard (short tenn agri /micro credit) Doubtl-ul (short terrr agri /micro credit) Bad or Loss (Short term agri /rnicro credit) s% 5% 100% 14,802,311 740,1 t6 I 13,966 5.698 79,904,232 11,997,103,200 Required provision for Investments (Grand Total) 8 8,593 8.324 20,186,0s6 8,689,072,870 Total provision maintained 11,997,403,200 8,689,072,870 Provision Surnlus/(Shortfall) Bangladesh Bank vide its ietter rel-: DBI-4142(2)12019-761, dated: 29.A4.2019. accorded their perrnission to det-er provision fbr investment arrounting to Taka-444.00 crore and provide thrs amount equally during next three years I'rom year 2019 to year 2021. Again Bangladesh Bank vide its letter rel DBI4142(2)2020-327, dated: 17.06.2020, suggested to provide Taka 187.83 crore as additional provision during the year 2019, and the Bank rraintained that provision. Moreover tirne has been extended up to 3 I st December 2020 to reguJarize the corresponding non perforrring loan Provision Made for funded exposures only: (Other than Short term Agricultural Unclassified Standard sMA & Micro Credit) 4326,514,668 56)72929 Classified 1, r24 J30 39,151.362 7,454,232,680 Substandard ln Doubtlul Bad or Loss 11,977,198,969 Provision Made: (Short term Agricultural Standard (short ternr agri credrt) Substandard (short ternr agri credit) Doubtful (shor1 tenr agri credit) Bad or Loss (Short term agri credit) 2,258,309,1 69 12,665,065 82,2)t .511 272,t91,0-sl 6,0,+3,499,953 8,668,886,815 & Nlicro Credit) 1 9,1 58,4 7 8 20,089,1 38 40,116 88,593 s,698 R 111 1 19,904,2J2 Grand Total has . 11,997,403,200 20,186,056 8,689,072,870
43. Hoda Vasi Chowdhury & Co. Chartered Accountants Shafiq Basak & Co. Chartered Accountants 31.12.2019 7.8.2 Rate 'Iaka Basis for Provision ltems l% 490.293,511 464,963,83 Required provision for Investments 490,293.511 461.963,838 Provision maintained {note # 13.1(c)} Surplus Provision 490,293,s77 464,963,838 8l ,408,014,364 174,117,327,019 Off-Balance Sheet 53,s94,806,020 7.9 Particulars of Investments: (i) Investment considered good in respect ofwhich the Banking Company is fully secured (ii) Investment consrdered good lor which the Banking Company holds no other security other than the debtor's personai security (iii) Investment considered good and secured by personal security ofone or more parties in addrtion to the personal security ofthe debtors (iv) Investment considered bad or doubtlul not provided lbr 1 58,757,8 I 8,768 6,299,t37,431 5,779,025,166 (v) Investment due by drrectors or officers ofthe Banking Company or any ofthern either severally or.jointly with any other person (vi) Investment due by companies or firms in which the directors ofthe Banking Company are interested as directors, partners or managing agents or, in the case olprivate conrpanies as members. (vii) Maximum total amount of investments, including temporary investments made at any tirne during the period to directors or managers or officers ofthe Banking Company or any ofthem either severally or jointly with any other persons. Maximunr total amount oflnvestlnents including ternporary Investment granted during the period to the companies or firms in which the directors ofthe Banking Cornpany are interested as directors, partners or managing agents or in the case olprivate cornpanies as rnembers Nil (ix) Investment due lrom other Banks Nil (x) Classified Investment on which profit has not been charged Particulars of written off investments a) Cumulative amount 2,460,432,039 ofwritten offInvestments since inception to 31 December last year 5.958,1 3I ii) 7.10 e) Amount of conrpensation suspense as at vear 2,534.289 Nil 1 1 ,345 r 6,954,628,000 5,875,0,13,7 8 8 3.067.5 5 8 ,734,980 8 5,958,111,345 454,000,2.01 428.319.034 5,989,846,325 5,958,1 1,345 2,870,657,332 1,8'14,740.196 balance) recovery witten off (curnulative end. I Nil s,989,846,32s Total amount of written off (a+b) c) Amount recovered against debts whjch are previously 2,602,680,866 9,85 r ,600 b) Amount olwritten off / waiver of Investment during the year x 238,65,1,170,953 16,ss0,769,927 d) Atrount oflnvestments written olfagainst rvhich cases have been filed for 8 76,s61,437 ,8s4 261,268,589,649 Totrl (xi) l.12.201 8 Particulars of provision for Off-Balance Sheet items Status (viii) 3 Taka 1 Large Investment Restructuring Large Investment Restructuring is made as per BRPD Circular no:04, Dated:29 January 2015, arrount ofTaka-500 crore and above in aggregate. The Eligibility criteria as per the circular are: ofthe investments having nrinimum outstanding ola particular borrower or group in a Bank, singly or in clubbed together forrn, shall be eligible for restructuring. Borrower having exposure in multiple Banks may also approach by lorrning a consortiutn. a) Investments b) Minimum outstanding investment amount for restructuring shall be Taka-500.00 crore or above in aggregate. c) Restructuring facility will be provided to a particular investment only once. Total outstanding amount ofsuch restructured investment for the year 8 201 9 amounts to Taka- 17 .42 crore. Fixed Assets including Premises (Including Intangible Assets) A. Cost Land I Building Fumiture & Fixtures Office Equipment 2,330,000 2,320.220,714 I 2,330,000 ) 1)O ))O 7tJ 1 ,257 ,167 ,455 I ,09 r 1 ,621,292,105 I ,457,03 ,686,94 I Software 247 ,489,817 ,670 223,604,251 Vehicles 141,721,354 r41,721,354 Books I I ,634, I 89 ,739,549 s,601,960,993 1 s,248,229,118 B. Accumulated Depreciation Land Building .104,03 8,934 3s4.94'1 ,928 466.r11,881 930,956,342 386, I 35,984 Software 72.722.101 54,5 86,568 Vehicles l2 t ,05I ,952 Furniture & Fixtures Office Equipment Books r,030,039 1,99s,911,251 3,606,049,743 Carrying value DHAKA * 78 I I,526,250 06,546,049 951 ,623 1,684,694,401 3,563,534,717
44. Hoda Vasi Chowdhury & Co. Chartered Accountants Shafiq Basak & Co. Chartered Accountants 3r.t2.20r8 '[aka 3l.12.20r9 Takr 8.1 Intangible assets Core Banking solution 'ABABIL' is used in SIBL which was incorporated in the year 2010. The value ofall the softwares under the head'lntangible Assets'is Taka-247,489,811.00 and being amortized @ 10% following the same method ofreducing balancing method as appJied for fixed assets. Wrrtten down value o1'the soflware as on 31.12.2019 lsTaka-174,767,715.00. For details please refer to Annexure-A 8(a) Consolidated written down value ofFixed Assets including intangible assets 3,606,049,743 Social Islami Bank Ltd, Fixe rl ass ets of s u b sidi ari es SIBL Securities Ltd. SIBL Investment Ltd Carrying value ofFixed assets ofthe Group 9 7 ,667 71 8.7 I 8.3 86 ,152 3,613,716,895 3,572,253,103 Others Assets Stock olstationery, stamps and printing nraterials etc. (valued at cost) Advance rent 36,651 ,315 38,940,292 236,7 83,450 240,368,398 Security Deposit 3, I 56,556 3.441 ,126 Branch Adjustrnents (SIBG) (Note: 9.1 ) Suspense Accounts (Note: 9.2) 2,950,929,983 7,10r,009,106 t92,702,080 219,s94,412 Other Prepaynents 64,210,061 64,2r6.51I Receivable from M/S. Stock & Bond and SIBL Securities Ltd. Advance Income Tax 21,482,142 t22,07 4,364 I 0,685,1 52,8s4 Receivable from SIBL Securities Limited Receivable from SIBL lnvestment Limited 9,371,407,022 72,000,000 1,883,690 Protested Bills against lnvestment Protit Receivable lrom Banks. NBFI and BD Govt. Investment with Otr-shore Banking Unit 1 325,014,570 Receivable from Off-shore Banking Unrt Dividend Receivable Account 665,,s95,298 1,487,890,290 1,131,602.8'75 36,882.278 62,48 r ,496 458.442,289 99,6r6,438 1 10.969.426 31,456,,11 t?,1s3,335,023 Less: Balance ,820,060 319,377 ,510 472,8 85,826 s62, I 30.020 Profit Receivable from Mudaraba Subordinated Bond Others (Note: 9.3) 9,428,082 I 20 with OBLI for elimination 1,487,890,290 Investment with Off-shore Banking Unit Grand total after elimination of balancc with OBt] 9(a) 3,s63,s34,717 752 1,734,602.815 15,965,441,?33 t8 Consolidatcd other Assets Social Islami Bank Limited ts,965,444,733 18,s26,658,424 Atld: Other ossets of subsiilinr.r compunies SIBL Securities Limited Menrbership of Chittagong Stock Erchange Mernbership of Dhaka Stock Exchange Advance Income Tax 307,000,000 307,000,000 682,770,683 682,770,683 89,i84,152 "76,8"12,356 68,86s 848, r 48 Advance fXfice Rent 1 Advance lor floor space at nikunjo, DSE Tower Receivable from Regulators Receivable frorr client Recervable frorr Bai-Muajjal ,r 850,000 I 102,133,901 SIBL Investment Limited Advance Incotre Tar ,94 r ,390 1,075,824,864 984,33 5,48 5 & Divtdend Incorne Security Deposit to CDBL, DSE Security Deposit to BTCL & Duncan Products 81 200,000 ,729,877 200,000 14,000 5,000 8 212.40c) 81,399,1 35 Accounts receivable Less: Inter Company transactions climinated: Receivable fiorn SIBL Securities Ltrnited Recervable fiom SIBL Investment Limited 72,000,000 1,883.690 r8,t43,066,838 9.1 850,000 1.637,167 1,820.060 20 The balance ofBranch ad,iustment (SIBG) represents unresponded Inter branch and head office transactions at balance sheet date. The balance ofDebit and Credit unrespondent entries as on l5 June 2020 were Taka-488,869,484.00 Details ofr.vhich are as lollows: Number of Unrespondent entries 31.12.2019 months l9 Over3monthsbutwithin6months-118-1,019,176,876 Over 6 months but within 9 months Over9months Upto 3 l9 DHAKA t- Amount (in Tk) of 31.12.2018 199 15 3 36s Unrespondent entries 31.12.2019 31.12.2018 488,369,484 1,634,861,265 488,869,484 64gJ29J70 45,251,53g 3,348,0r9,449
45. Hoda Vasi Chowdhury & Co. Chartered Accountants Shafiq Basak & Co. Chartered Accountants 31.12.2019 Taka 9.2 Suspense Account represents advance against 31.12.2018 Taka TA/DA, Entertainment Expenses, Advefiisement Expenses, Branch Decoration Expenses, Legal Charges and suspense -others. Necessary provision on others assets has been made in the accounts according to the BRPD Circular no: 14 dated June 25, 2001 para Kha (l) & (2). 9.3 Others D.D. Paid without advice Wes fund purchased 650 1,089 1,089 Adjusting A/c debit balance 5,500,000 21,632,312 Advance VAT paid 3,81 s, I 78 3,815,178 BEFTN adiustrnent A/c ( Incentive disbursement Fund 1 1,832 88,956) ,t 41 ,465 10,969,426 l0 31,4s6,411 Placement from Banks & Other Financial Institutions - Bangladesh Govt. Islamic Bond The Bank has no outstanding balance of borrowing as on 3 L 1 8000"000100 2.20 I 9. The Bank had an outstanding balance of borrworng amontrng Tk. 800 crore as on 31.12.2018 taken from Bangladesh Govt. Islamic Bond Fund having different maturity dates. Profit rate ofsuch borrowings is determined under Mudaraba Principle. A demand promissory note favoring Bnagladesh Bank has been kept as secunty to Bangladesh Bank against the borrolings. Maturity Grouping of Borrowings Up to I rnonrh 1,000,000.000 months More than 3 months but less than 6 months More than I month but less than 3 2,000,000"000 3,000,000,000 6 rnonths and abore 8,000,000,000 ll Deposits and Other Accounts Mudaraba Savings Deposits (MSD) 2s,739.t19.6s8 Mudaraba Terrr Deposits (MTDR) I 6-s,687,5 14,476 I I 9,62 I ,56 I ,549 56.095,697.702 Other Mudaraba 182 Short Nolice Deposits (MSND) Schenre its t7 ,218.665,421 1t.l Al- Wadeeah Current Deposit and other accounts (AWCD) (Note- I L2) Bills payable (Note- l I .3) Cash Waqf Fund 3,348,1 72.630 46,893,652,900 30,220,9 I 6.552 26,072,068,-5 s8 24,336.269.111 8 5 4,384.822,493 342,110.3t I 5,9 82,863,7 287,936,655,109 I 1,1 1 311 ,048,c)76 248,324,189,619 Mudaraba SchemeDeposits Mud. Ha.jjl Umrah Savings Scheme Mud. Pension Savings Schenre Mud. Education Savings Scherne Mud. Monthly Sav. Deposit Sche Mud. Monthly Prollt Deposit Mud. Bashstan Savings Scheme Mud. Millionaire Scheme M.Lakhopoti Deposit Scherre M. Double Benefit Deposit Schenre M.Marriage Savings Scheme M.Mohorana Savings Scheme 126"591,292 2,614,730,097 34,311,390 40,826,600 49.064,610 53,206,304 3,408,4s0,904 3,807,749,887 676,210,468 584,911 ,007 l ,0 r 6,936,s4 997,704,486 r 38,20r,939 t,518,882,641 99,1s6,s76 Subarna Rekha SpeciaJ Deposit(Wornen) ,329,016 21,91s,847 1,167 ,726,011 r,526,890,662 t) ,60'l5l 641 .011 ,293 Sanchita Special Deposit scherne 223,441,473 Sonali Din Pension Deposrt Schenre Sukher Thikana Savings Scherne 14,179,920,337 Sarrriddir Sopan Scheme Deposit Sopner Siri Deposit Scher:re S SIBL ASTHA (MUDARABA MONTHLY P SIBI- SUPER DPS (MUDARABA PENSION SIBL DIGUN PROTTASTTA(DOUBLE BE )r4 117 2r 0,053,345 I 1,909,821,418 12,362,t73 2,659,143,247 755,470,98 2.15s,087,72s 4, I 0 I ,568,075 1,1 09,1 1 8,024 11 ,811 ,220 113,311,490 961 ,65 1 ,456 t 1 ,064,229 14,373,382,4t3 390,957,7 89 1.710.379.712 46,893,652,900 Atnount ofMudaraba Scheme Deposit mentioned above are inclusjve oiProfit payable on the sclteme deposits. sR 585,3 I 6,856 8,626 1 S il 21 2,002,551,1 86 1 Sacchandey Protidin Monthly Protlt Deposit ,536,732,09 I 1 03,830,s23 23,087,1 65 Shabug Chya Special Deposit Shabui Sharanna Specral Deposit s0,266,419 I 20,546,614 Subamalata Special Scheme(Wornen) Shama Shikhar (Mudaraba Billinior Deposit Proshanti (Mudaraba Zakat Savings Deposit 92,881 ,186 2,617,368,700 30,220,916,5s2
46. Hoda Vasi Chowdhury & Co. Chartered Accountants Shafiq Basak & Co. Chartered Accountants 3l.12.2019 Taka 11.2 31.12.201 8 Taka Al-Wadeeah Current Deposit & other A/c Al Wadeeah current deposit 9.8s3,7 41.246 Sundry deposit 6,218,150.977 10,154,634,562 5.592.646,3 54 Social fund deposit t7 ,07 5 17,075 Supervision charge 86 I ,490 861.490 Risk fund deposit FC deposit 3,079,314 2,410,066 4,096,848,,187 3,400,s4 8,930 Convertible Taka A/c* 80,210,645 7 5,938.142 F. C. held against B.B. L/C 2,427 ,891,287 2,137 .402,151 Profit payable A/c 3,3 8s,663,078 2,902.148.436 s,541,961 Compensation Realized 69,662,542 26,072,068,ss8 24,336,269,747 26,072,068,558 24,336,269,747 *Balance ofConvertible Taka A/c represents the poftion ofunsettled balance. t r.2(a) Consolidated balance of Al-Wadce ah Cu rrent Deposit & Other A/c Social Islami Bank Limited Less: Intetcomptny balance eliminiled 7l SIBL Securities Limiled SIBL Investrnent I-imited 362,309.'15 I I 101,,+51,389 I l8 249,848,93 7 25,608,307,719 Consolidated balance of Current deposit and other accounts 23.864. 23,962,ss6,672 The balances are held with the'Principal Branch'ofSIBL bearing currellt account no:0002-13300056882 and 0002-13300057058 respectively. For consolidation purpose the balances have been eljrninated. r 1.3 Bills Payable Payment Order (PO) 4,737,7 t6,525 Demand Dralt (DD) 3.2t7,864,158 2, r r 8,6q4 1,940,911 B/P arvaiting rerrittance I .243 ,206.319 1 , 5,982,863,785 tt.4 64.839,640 1,381,822,193 Maturity wise classifcation of Deposits Payable on demand Up to I I 12.498,722_336 36,044,1 08,770 34,798,82 8,690 00,54 8,4 I 5.3 0 82,1 95. 1 20,270 I nronth I rnonth but up to 6 months More than 6 rnonths but up to I year More than 1 year br.rt up to 5 years More than I More than 5 years but up to I 0 years 7,955,008,46 1 80,65 5,9 86,645 76.322,340.3 4l ,448,001 .l 71 I t.28s.134,762 27,831,137,109 287,936,6ss,109 I 1.s r r8 14,67 6,340.92s 248,324,489,649 Segregation of deposits & other accounts i) Client Deposit A1-Wadeeah Cunent deposrt & other accounts 26,0s6,267,818 Bills Payable 5,982,863 Mudaraba Savings Deposits "7 85 23,4s6,66s,950 Mudaraba Short Notice Deposits I Mudaraba Term Deposit 2,878,90 I .258 21,331,012,694 4,384,822,493 t9,563,591 ,522 I 3, I 60,624,8 I 3 152.211,514,476 132.358.691,702 46.893"652,900 30,220,916,552 Mudaraba Scherre Deposits Cash Waqf Fund 342,710,31I 267,828,576,558 317,048,t)76 224,339,780,753 ii) Bank Deposit Mudaraba Term Deposit Receipt (MTDR) 1 3,470,000,000 4,339,164,163 5,800,680 2,197,053 Mudaraba Savings Deposit (MSD) 2,2 82,5 1 3,708 \1 q6l o)1 I 20,108,078,ss1 Grand Total of deposits and other accounts t2 23,73 7,000,000 Mudaraba Short Notice Deposit (MSND) Al-Wadeeah Current deposit (AWCD) 287,936,655,109 SlBL Mudaraba Subordinatcd Bond 9.400.000.000 I 87,547,8 I 7 23,984,708,896 248,324,489,649 10,800,000,000 SIBLhastltreesubordinatedbondsnamell,"SlBLMudarabaSubordtnatedBondofTk.300crore", SIBL2ndMudirrabaSubordinatedBondol-Tk..100 crore and SIBL 3rd Mudaraba Subordinated Bond ofTaka-S00.00 crore to suppofi and strengthen Tier-ll caprtal base ofthe Bank under Basel-lll capital regulation of Bangladesh Bank. SIBL l\Iudaraba Subordinated Bond ofTk. 300 Crore ofTk. 300 Crore'in accordance rvith the regulatory approval lrom Banglaclesh Securitres and Exchange Comtnission (BSEC) and Bangladesh Bank (BB) vide therr letter ref no. BSEC/CVDS-13/20141598 & BRPD (BFIS) {16l/lzl Social Isla:ni Bank Limited issued'SIBL Mudaraba Subordinated Bond B(P)/2014-6027 , Dated: 26 August 2014 & I 6 Septernber 201 4 respectively. The bond was tirlly subscribed by 4 nos of investors and the subscription ofthe bond closed on 31.03.201 5. The list ofinvestor wrth present outstanding balance is as follows: 1 1.4,rd
47. Hoda Vasi Chowdhury & Co. Chartered Accountants Shafiq Basak & Co. Chartered Accountants J l.12.20t 9 Taka 31.12.201 8 Taka Investors ofSIBL Nludaraba Subordinated Bond Al-Araf'ah Islami Bank Limited 200,000,000 300,000.000 Bank Asia Limited 80,000,000 Bank Asia Limited Employees' Gratuity Fund Islami Bank Bangladesh Limited 28,000,000 42,000,000 200,000,000 300,000.000 1 20,000,000 Padma Islami Life Insurance Lirnited 20,000,000 30,000,000 Prime Islami Life Insurance Limited 20,000,000 30,000,000 Pubali Bank Limited 80.000,000 Reliance Insurance Limrted 20,000,000 30,000,000 200,000,000 300,000,000 Rupali Bank Lirnited Shah.jalal Islami Bank Linited Sonali Bank Lrmited Square Phanraceuticals Workers Profit Participation Fund United Finance Limrted Uttara Bank Limited I 20,000,000 .10,000.000 60,000,000 200.000,000 300,000,000 20,000,000 30,000,000 s2,000.000 7 40,000,000 1,200,000,000 8,000,000 60,000,000 1,800,000,000 SIBL 2nd Mudaraba Subordinated Bond ofTk. 400 Crore Social lslami Bank Liinited issued 'SIBL 2nd Mudaraba Subordinated Bond of Tk. 400 Crore' in accordance rvith the regLrlatory approval ttoin Bangladesh Securities and Exchange Comrrission (BSEC) and Bangladesh Bank (BB) vrde their letrer ref no. BSEC/CIIDS-1312014128 & BRPD (BFIS) 661/14 B(P)/2017-1252, Dated: l7 January 2017 & 01 March 2017 respectively. The bond was fully subscribed by J2 nos olinvestors and the subscrrption ofthe bond closed on 20.06.2017 The list ofinvestor with present outstanding baiance rs as fbllows: lnvestors ofSIBL 2nd Mudaraba Subordinated Bond Bank Asia Limited 80.000.000 I Central Depository Bangladesh Ltd Dhaka Stock Exchange Limited 60,000,000 200,000,000 320,000,000 400.000.000 Eastern Bank Limited 200,000,000 250.000,000 Mercantile Bank Lirnited Midland Bank Limited National Lile Insurance Co. Ltd Pubali Bank Lirnited Rupalr Bank Limited 200,000,000 2s0,000,000 60,000,000 200,000.000 Shahjalal Islami Bank Lirrited Trust Bank Lirnited Uttara Bank Limited r I 80,000,000 I 400,000,000 00,000.000 00,000,000 500.000.000 400,000.000 500.000,000 400,000,000 500.000,000 400,000,000 500,000.000 400,000,000 500,000,000 4,000,000,000 3,200,000,000 SIBL 3'd Mudaraba Subordinated Bond of Tk.500 Sociai Islarni Bank Limjted :ssued 'SIBL 3rd Mudaraba Subordinated Bond of Tk. 500 Crore in accordance r.vith the regulatory approval tiorn Bangladesh Securities and Exchange Commission (BSEC) and Bangladesh Bank (BB) vide their Ietter ref no BSEC/CI/DS-13120141670 & BRPD(BFIS)661 /I & 1 1 October 201 8 respectively. The bond rvas fully subscribed by 3 nos of invesrors ofthe bond closed on 27. 2.20 8. T he list of investor with present outstanding balance is as follows 48(P)/20 I 8-7647, Dated I 27 Septernber 20 I 8 and the subscription 1 1 Invcstors ofSIBL 3rd Mudarabn Subordinated Bond Agrani Bank Limited EXIM Bank Lirnited Islami Bank Bangladesh Lrrrited l3 2.500,000,000 500,000,000 2,000,000,000 5,000,000,000 2,s00,000.000 500,000,000 2,000,000,000 5,000,000,000 Other Liabilities Ad-iusting AiC (Cr.) Balance Other Payable I 0,23 I .405 12,263,717 BEFTN Adjustrnent Account Parking Account ATM Settlement lor Q-Cash Provision for Investments ( note: 1 3. I ) Provision for other Assets (note: 1 3.2) Compensation and Rent Suspense (note. 13.3) Provision for Taxation (note: I 3.4) Zakat Fund (note: 13.5) Mudaraba Profit Distribution (note: 13.6) Provision for good borrower (note: 13.7) Provision lor Climate Rrsk Fund (note: 13.8) 2,030,804 3,079,086 \\) 35,998.917 )4 61) 23,642.698 34,004,88s 51 8,689,072,870 11,997 ,403,2OC) 456,521,557 450,890,ss7 2,870,657,332 1,87 4,"140,496 t4,826,251,926 93,451 ,7 I 8 r 3, I 77,088"886 8 1 ,040,968 I 5,000,000 I 0,000,000 8,000,000 3,000,000 2,000,000 30,354,428,s31 DHAKA I 24,356,621,1s6
48. Hoda Vasi Chowdhury & Co. Chartered Accountants l3(a) Shafiq Basak & Co Chartered Accountants 31.12.2019 31.12.201 8 Tal<a Taka Consolidated Other Liabilities Social Islami Bank Limited 30,354,428,531 24,356,621,1s6 Adrl: Olher Liabilities of subsidiories SIBL Securities Limited Payable to SIBL-l'errn loan 7, 800,000,000 Payable to regulators 800,000.000 6,6s5,006 Payable to clients Other provisions I 5,,+58,8I 4 305,70 I .236 146.322.314 203,361,043 89. I 60.703 76.8r18.906 46,000 46,000 Provision lor Income Tax 136.934.479 SIBL Investment Limited Accrued Expenses Other provisions 2,660,s02 Provision for Incorre Tar 655,1 59 31,705,629,453 25,589,270,400 Less: Intercompany balance eliminated SIBL Secufilies Limited Payable to SIBL-Term loan Grand total t3.1 800,000,000 30,905,629,4s3 6,398,009,498 1 55,621 ,173 (50,969,55 8 ) 150,r82,617 1,073,661,495 2,82s,0ss,062 Provision held at the end of the year 7,595,557,t86 6,398,009,498 (b) General Provision on Investment Provision held at the beginning ofthc year Fully provided Inveslmenl written off /Waiver r,826,099,534 2,207,398,791 Addition during the year 2,085,152.904 Balancc at the end of thc year 3,91 1,552,438 (c) General Provision on Off-Balance Sheet itcms Provisron held at the beginnrng ofthe ycar (32,098,000) 11,s07,109,623 464,963.83 8 )s 1)q 71q Addition during the year Balance at the end of thc ycar Total Provision for Investments & Off-Balance Sheet items (a+b+c) 490,293,577 11,997,403,200 Q49,2A1,263) 1,826,099,s34 8,224,109,032 679.316,8r2 (214,352.97 4) 464,963,838 8,689,072,870 Provision for other Assets Provision held at the beginning ofthe year Addition during the yrear Balance at the end of the year .150,890,5 5 7 420.190.551 5,63 7,000 30, l 00,000 456,527,537 450,890,ss7 319.377,570 3I Provision for protested bills Provision held at the beginning ofthe 1,ear Provision during the year 13.2.2 3-473,711.37 8 (3 r ,734,980) Provision made during this year Total Provision on Inyestments 13.2.1 24,789,270,400 Provision for Investmcnt (a) Spccific Provision on lnvestment Provision held at the beginning ofthe year Fully provided Investment written off/Warver Transferred from doubtfirl income/compensation realized/recovery 13.2 800,000,000 5.970,290 i1s,0 l 4,s70 319,377,570 I3 t.512,987 101,383,277 Provision for suspense account Provision held at the beginntng ofthe year Addition during the year 24,129,7 10 1 13.3 3,407.280 5.63 7.000 Compensation 31.51 2.987 I 31,51 2,987 & Rent Suspense A/C Compensation Receivable A/C Murabaha (General) Murabaha (Post Inrport) Musharaka (Preshrprnent) 124.210,72s 726.953 33,656,265 I 1 1.340,t 46 690,559 290,783 Bai-Muazzal 219,49s,170 269.513,147 Bai-Muazza! Trust Recelpt 290,986,23 8 207,5 89,090 I 15,209 38,7 5t ,651 257,020,083 Baim Wes bills Bai-Muazzal (ME) 534,086,6 r 2 1,263,277,170 885,796,026
49. Hoda Vasi Chowdhury & Co. Chartered Accountants Shafiq Basak & Co. Chartered Accountants 31.12"20t9 Taka 31.12.2018 Taka Compensation Suspense A/C Murabaha (General) Murabaha (Post hnport) I Bai-Muazzal Bai-Muazzal- House hold Bai-Muazzal Trust Receipt 8,77 1 ,5 t8,701,717 28 I ,444,01 0 7,8 56 233,484,8 48,681,849 45 060 13.3.1 I3.4 8 5\) 455 5q) 67,335,270 69.925.099 422,s23,374 376,407,247 Rent Suspense A/C 1,184,856,788 Total Compensation & Rent Suspcnse 2 Nlovement of Compensation and Rent Suspense A/C Balance at the beginning olthe year Add: Amount transferred to suspense account during the 1,ear Less: Amount recovered liom suspense account during tlre "vear Less: Amount rvritten olflwaived during the year Balance at the end of the year 8 7.8 56 455 ig? Musharaka (Presh ipment) Others il 8,016,t 52 6,582,644 ,87 0 ,637 613,137,223 ,332 1,874,140.496 1,131,458.797 (135.541,961) 10 ,496 | ,87 ) ,665.037 ^246 4 ,7 269,365.192 (59,662.s42) 2,870,657,332 1,874,740,496 Provision for Taxation Provision for Current tax Balance at the beginning ofthe year Add: Provision rrade during the year (Zakat Fund) (Note: I 3.5) Add: Provision made during the year (Note:13.4.1) I 3,1 77,088,886 56,07 1 I ,03 1 0,900,720,339 48.624.58 1 2,221 ,593,092,009 14,826,2s1,926 ,7 13 I ,96't r3,r77,088,886 Advance tax Balance at the beginning ofthe year Paid during the year 1 8, I ,3 r 3,745,832 02,785.360 t,268,62 r,662 10,68s,1s2,8s4 4,141,099,07J 3,7s7,057,281 Provision made during the year Operating Profit before provision & tax Add: Inadmissible erpense 6,342,1t0,494 6,143,117,s7 4 Less: Inadmissible expense and for separate consideration 3,026,350,909 Total Taxable Income 3,844,.192,2s3 5,697,620,3rs ,684,595 50,700,027 707,388 1,593,092,009 2, I 36,607.6 I 8 1,593,092,009 2,227,743,967 ofthe )ear Balance at lhe end 13.4.1 9,371,407,022 9,371,407,022 s28,732,667 467,372,s10 9t2 Total Tax liability for current year Business T ax @ 37 50ok lbr year 20 1 9 and @37 Dividend Tax@20o/o Tar on garn on shares & securities @ I 0% Provision required . . 50Yo tbr year 20 I 8 Provision made I ,44 I 89,7 I 3,r+1 8 I 1.122,530 2,227,743,967 Provision for income tax has been calculated as per Incorre Tax Ordinance, 1984 as amended by the Finance Act 2019 oonsidering all applicable allowances and disallowances, the Banks experience from cutoms and practices olthe income tax office. Expert opinion has also been obtajned tn thrs regard. 13.s Zakat fund Opening Balance 1 Addition this 119,522,7 49 To sadaka fund To 29,665.548 93,451,718 ion tbr tax 56,07 t,03 Less: Paid during the year 13.6 Closing Balance at the end ofthe year Mudaraba Profi t Distribution (48,624,s8 r 29,66s,s48 8 1 .040,968 48,624,s8 l I (r6r,000) Less: Transferred to Provision for Taxation Less: Transfbrred to Sadaka lirnd (Balance 92.567.800 1 (90.7 4s.822) ) ofZakat Fund) 149,s22,749 ( r ,82 1,978) 129,66s,s48 Openrng Balance Addjtion the year I 5,000,000 L,ess: Paid during the year 13.7 13.8 Closing Balance at the end of the year Provision for good borrower t5,000,000 - Opening balance 8,000,000 6,7 Addition during the year Paid during the year 2,000.000 1.222.000 10.000.000 8,000,000 7 8,000 Provision for Climate Risk Fund Opening balance 2,000,000 Addition during the year Paid during the year 1,000,000 2.000,000 3.000.000 2,000,000 Provision for Climate Risk Fund has been uraintained in accordance rvith GBSRD circular no: 04. dateii: 09 July 20 I 5 and SFD circular not 0 I. dated I I May 2016
50. Hoda Vasi Chowdhury & Co. Chartered Accountants Shafiq Basak & Co. Chartered Accountants 31. r2.20 l9 31.12.2018 Taka 14 l4 (a) Taka Dcferrcd Tax Liability/(Assct) Balance at the beginning ofthe year Add: Provision made during the year Closing balancc at the end of the year 74,330,843 37,210.816 9,486,67l 93,8t7,514 74,330,843 Consolidated Deferred Tax Liability(Asset) Social Islami Bank Limited 93,817,514 74,330,843 31.124.027 I SIBL Securities Limited Balance at the beginning ofthe year Add: Provision made during the year Closing balance at the end of the year 1 Grand total I5 Capital l5.l Authorized Capital 1,000,000,000 ordinary shares 75.2 .1 0n.1 7o (21 8.761)l ofTk. l0 1 887,413 u9!,116 94,704,927 75,437,019 10,000,000,000 each 81,686 (7s.5 r 0) ,1 I 10,000,000,000 Issued, Subscribed and Paid up Capital The Paid-up Capital ofthe Bank is currently Tk. 8,933,413,560 divided into 893,341,356 Ordinary Shares ofTk 8,933,413,560 8,1ffi 10 each Break up of paid up capital is as follows 26,000,000 no. Ordinary shares ofTk.l0 issued for cash 471,322,945 no. Ordinary shares ofTk. I 0 each lor cash as right share 234,975,697 no.ordinary shares ofTk 1 0 each issued as bonus shares 15.3 73,829,864 no.ordrnary shares ofTk l0 81,212,850 no.ordinary shares ofTk 260,000,000 260,000,000 4,773,229,450 4.113,221),450 2.349.7 56,970 2,319.7 56,970 each issued as bonus shares 73 8,298,640 10 each issued as bonus shares 812,128,500 8,298,64n Sponsor Shareholders Group 8,933,413,560 2,985,828,490 2,s6s,624,260 General Shareholders Group 5,9,17,5 85,070 5,5 55,660,800 8.933,41 3.560 8,121,285,060 8,121,285'060 31,12.2019 Classification ofshareholders by holding No. of Shareholdcrs Year 2019 Less than 500 shares 501 to 5.000 shares 5,001 to 10,000 shares 2,095,011 0.23o/o 23,4 t 7,1 08 2.620/o 1,697 I t,698,548 |.3lYo I 0,933,635 L22Yo I 2,580.029 787 20,001 to 50,000 shares 409 50,001 to 99,999 shares 346 No. of Shareholders 93.200h 893,31t,356 3 r. Shareholding range 1.41% 832.617,019 29,647 t00.0 12.2018 Percentage No, ofshares 14,28s 2,206,181 0.27% 501 to 5,000 shares 5,001 to 10,000 shares t4,429 24,190.887 2.98o/o 1,738 411 50,001 ro 99,999 shares 363 Parliculars of shareholding and Percentage Analvsis Particulars of shareholding: nolders Sponsors Foreign Sponsors & Placement Cornpany General Public Institutions (Bank & Insurance) institution (Others) ICB Account Holders ICB ICB Ljnit Fund ICB Mutual Fund 26 13 t2 29.008 36 512 27 1 I Enrployee 2 Non-Resident Bangladesht 9 29,647 @ |.44Yo ,002,1 87 1.350h 12,459,070 750,546,40 I 1 53% 92.42y0 100.0 Year 2019 NumberofShare & Placement 1,723,1 80 1 1 -___________12{1!_ 812,128,s06 Total Sponsors 1 809 of holding of shares Less than 500 shares I0,001 to 20,000 shares 20,001 to 50,000 shares of holdins ofshares 3,336 10,001 to 20,000 shares Year 2018 Percentage l\o. ol sntres 13,012 I Total 15.4 73 Numberofshares 102,834,063 12,306,920 t,028,340,630 23,069,200 787.7 t9,130 183,441,866 I,834.4r 8,660 1 10,251 ,780 1,667,6s3,350 155,586,s99 1,555,865.990 1,643,7.18, t00 24,s3s,859 245,35 8.590 397 ,223,790 I 3,972,237,900 60,895 t 0,1 48.204 5,321,737 I ,598, I 95 608,950 5 90,690 ,482.040 83,862,930 53,211 ,310 455,860 .950 31.916,160 I0 I I 5.9rJ I 2,832,280 893,34t,356 8,933,4t3,s60 283,228 228,634,6 r 0 3,563,7 80,720 2,671 ,730 8,12I,285,060
51. Shafiq Basak & Co Chartered Accountants Hoda Vasi Chowdhury & Co. Chartered Accountants 31.12.2018 Taka Taka & Placernent 11.51% Sponsors Foreign Sponsors & Placernent Company General Public Institutrons (Bank & lnsurance) Institution (Others) 9.100h 1.38% l.36Yo 20.530k 20 s3% 11 12% 20 24% 2.7 5Yo 2.82% 43 88% 0.01% 44.46% 0.01% ICB Account Holders 15.5 Percentage Percentage Perccntage of shareholdinq Analvsis: Sponsors 31.12.2019 ICR 1.14% 1.03% ICB Unit Fund 0.60% 0.01Vo Employee 0.r8% 0.39% Non-Resrdent Bangladeshi 0.03% 0.030 100% 100,,/o Capital Adequacy (Solo Basis) Position olcapital adequacy are given belorv: a) Goinq Concern Capital ( Tier Common Equity Ticr I i) -I) (Cli'[-l) Capital 8,933,413,560 6,422,261,269 Paid-up Capital ii) Statutory Reserve (Note: 1 6) iii) Retained Earnings (Note: 1 7) 984.276,3 83 r6,339,9s1,211 Additional Tier I (AT-l) Capital) 16,339,951,21 b) Gone Concern Capital i) General Provisron {Note 8,121,285,060 5.79s,4ss,391 878. | 40,568 14,794,881,02s I 14,794,881,02s (Tier-II) 13.2(b+c)} (eligible) 4,401,846,015 ii) Assets Revaluation Reserve (As per BaselJII Guideline of Bangladesh Bank 80% 2,291,063,372 1 & I iii) SIBi.Mudaraba Subordrnated flonds 60,000,000 8,920,000,000 11,s61,846,01s 11,316,631,34s 27,901,791,226 26,111,512,369 7, I c) Total eligible capital (a +b) 202,485,885,000 d) Total Risk Weighted Assets e) Jllinimum Required Capital (10% of Risk Weighted 05,567,973 00% Revaluation Reserve is Adjusted in 201 8 and 201 9 respectively) Assets) f) Minimum Required Capital including conservation buffer (12.5% of Risl( w€ighted assets) 183,000,98s,000 20,248,588,500 I8 25,310,735,625 21,731,366,969 g) Total Capital Surplus (c-e) 7,6s3,208,726 7,811,.113,869 h)'Iotal Capital Surplus considering conseNation buffer(c-l) 2,591,061,601 4,380,r4s,401 Capital Adequacy (Consolidated basis) Position olcapital adequacy are given below:a) Goinq Concern Capital ( Tier -I) Common Equity Tier I (CET-l) Capital i) Paid-up Capital ii) Statutory Reserve (Note: 16) iii) General Reserve rv) Retained Earnings {Note: 1 8(a)} 8,933,4 l 3,s60 8,12t,285,060 6.422.261.269 5,795,455,391 9,843,356 10.161,2s0 l ,0 r 5,230,51 7 904,866,02 8 16,380,748,701 14,832,370,735 16,380,748,701 14,832,370,735 Additional Tier I (AT-l) Capital b) Gone Concern Canital (Tier-II) i) General Provision {Note l3.l(b+c) 2,291,063,372 4.401,846,015 ii) Assets Revaluation Reserve (eligible) (As per Basel-III Guideline o1'Bangladesh Bank 80% iii) SIBLMudaraba Subordinated Bonds 105,567,913 & I 00% Revaluation Reserve is Adi usted in 20 I 8 and 201 9 respectively) 8,920,000,000 7,1 60,000,000 11,561,846,015 il,316,63t,34s c) Total eligible capital (a +b) d) 'I'otal Risk Weightcd Assets e) Nlinimum Required Capital (10% of Risk Weighted Assets) f) I'linimum Required Capital including conservation buffer (12.5% of Risk Weighted Assets) g) Total Capital Surplus (c-e) h) Total Capital Surplus considering conservation buffer(c-f) @ 27,942,s94,716 26,149,002,080 20r,38s,860,000 181,993,06s,000 20,138,586,000 25,173,232,500 21,611,676,469 7,804,008,716 2,769,362,216 18,199,306,500 7,949,695,580 4,s37,32s,611
52. Shafiq Basak & Co. Chartered Accountants Hoda Vasi Chowdhury & Co. Chartered Accountants Capital to Risk Weighted Asset Ratio (Solo basis) Pa rticulars Going, Concem Capital : qry1l 3r.1 2.20r 8 31.12.2019 Capital Maintained Requirement ) Capital Maintained Requirement 6.00% 4.50% 8.07% 6.00o/o 8.08% 8.07% 4 50% 8.08% 7.00Y0 8.01% 6.375Yo 0.00% 5.7 lYo Connron Equrty Tier I Qapital: (CET-1) CET-I Plus Conservation Buffer Gone Concern Capital: (Trer-II) Minimum CRAR I0.00% 13 18yo Minimum CRAR PIus Conservation Buffer 12.50o/o 13.78o/o - 8 08% 0.00% 6 t8% 1427% 17.875o/o l4.27Vo lonw Capital Adequacy Ratio (Consolidated basis) Pa rticu Iars 31,12,2019 Gorrrg Concerrr Caprtal (Trer-l J qolmg! !S!ry!_er I Capital: (CET-l ) CET-1 Plus Conservation Buffer (TierJI) Concem Minirrum CRAR Minimum CRAR Plus Conservation Buffer 3 Capital Nlaintained Requirement t.12.2018 Capital Maintained Requirement 6 00% 8 13% 6 00% 8 15% 4.500h Lt3% 4 50% 8.1 7.00% 8 13% 6.37s% 5% 8 15% 9!0%_ 5.7 4Yo 0.00% 6.22% 10.00% 13 88% 10.00% 14j7% 12.500 13.88% 11.87 50/o 14.37o/o Bangladesh Bank vide its letter ref: BRPD(P-1y661/1312019-1525, dated: 17.02.2019, has accorded their permission to calculate total capital without adjusting the deferred provision as approved by Bangladesh Bank till the year 2021. ls.6 Breakdown of gross Risk-Weighted Assets (RWA) in the various categories of risk-rveights Solo Basis (Amount in Taka) a) Risk Weights for Credit Risk 31.12.2019 Risk Weights (Both B/S & Off-ts/S) Principal amount 0%_ _ 31.12.20t 8 Risk Weighted Risk Weighted Principal amount Assets Assets 56.275.,+()0.(XX) 4.1.6s0,700,000 20% 30,84 I ,900,000 10"1: 900,000 1,209,960,000 I,874,400.000 749,160,004 09,584,900,000 s4,792,4s0900 44,625rqqq,q0q 24,077,s00,000 14 89,39 l ,200.000 23 s0% 60% 7 I 25,5 53,500,000 24,691 ,.100,000 9.2 r 5,900,000 5Yo 80% 100% -55.324 18_l 1i.l5_q,0p_0- :, _f!.7 !!.p_0!, .q0! 11,080,600. 7,372,720.000 ,000 55 ,ooo 120% 1250A I I Total 4,388,900,000 I 82,677, I 85,000 ie,l3o,roopoq 8.864.480.000 13,604,27 5,000 117 tr)u,r)u( 293,250,100,000 164,673,88s,000 16,274,1 00,000 1.822,470,000 18,224,700,000 1,627,410,000 58,400,000 1;584,000,000 205,300,000 I I 145 300 000 8,48 8.200,000 333,084,000,000 b) Risk Weights for Operational Risk c) Risk Weights for N{arket Risk Total Risk !Veighted Assets r8J16. r!qp00 14 .001 300. 000 5 65ti 50% f .000 I00 2,0s3,000,000 183,000,985,000 202,485,885,000 Consolidate basis (Amount in Taka) a) Risk Wcights for Credit Risk 31.12.2019 Risk Wcights (Both B/S & Off-BiS) Principal amount 31.12.201 8 Risk Weighted Assets 0o/o 56,365,200,000 L0% 10,84 r,900,000 6,1 68,380"000 3,024,900,000 r,209,960,000 09,584,900,000 54,792,450,000 40% s0% r 6)Yo 24,,07 l50k 24,69 o tl 80% I I ,400,000 s,369.000,000 100% 120% s 1250k I 3,1 4,446,500,000 l8 7 518 55 72 Principal amount _ 25,553,400,000 @ 23, r 08,200,000 1 I 8.536, 58,28 t,400.000 12,797.70C),000 Total 331,952,500,000 18t,139,410,000 292,274,600,000 18,406,0s0.000 t,640,340,000 84,040,000 I,840,400,000 226,900.000 201,385,860,000 r 00,000 t,400.000 12.099 .'t'15,000 I I 7,950.000 7 1.840,605,000 3,864,920.000 8,864-480.000 r r ,080,600,000 55,369 149,760,000 2.1.7 I 4,800,000 ,650,000 000 1 5, I I 0,680,000 1,874,400,000 5.6s 8.800.000 b) Risk Weights for Opcrational Risk c) Risk Weights for Nlarket Risk Total Risk Weighted Assets Asscts 44.727,600.900 50yo 1 Risk Wcighted I I 6,403,400,000 2,269,000,000 l8 1,993,06s,000
53. Hoda Vasi Chowdhury & Co. Chartered Accountants Shafiq Basak & Co. Chartered Accountants 3l . t 2.2019 3 1.1 2.20 t 8 Takl l6 Tal<a Statutory Reserve Opening balance 5.795,455.397 Add: Addrtion during the year 626,805,87 5,425,796,117 769,65 8,950 I 6,422261269 I 5J9s,4ssJ91 General Reserve 6(a) Opening balance 10,7 64,250 Add: Addition during the year I.,ess: Adiustment during the year 8,570,5111 2.193.709 (920.894) 10,764,250 9,8,13,356 The Board ofSIBL Securities Ltd. has decided to create a general reserve @l% on total receivable from clients at the end oleach year and add or adjustment with general reserve wili depend on size of unrealized Joss against outstanding margin loan and realization for the respective year. During the year, the adjushnent made lor creating provisions separately for impainnent ofmargin loan and dirninution in value of investment in shares. l7 Revaluation Reserve on fixed assets Carrying (Revalued) amount offired assets (Land and Building) Cost offixed assets (land and building) less depreciation Balance of revaluation reserve 1,436,649,786 Less: Adjustment made based on diflerence amount ofdepreciatron Remaining balance of revaluation reserve | .473, I 68,24 I 481,651.0r5 493,9r16,896 954,998,771 979,221,3ls 23,6t9,s\0 )t )));1J 93 1,379,261 954,998,771 Property class under the head 'Land and BuiJding'have been revalued in the 1,ear 201 l, in accordance rvith the applicable rules and regulations as per IAS-16,'Property, Plant and Equiprrent'and as per Bangladesh Bank BCD circular letter no: l2 & 18, dated: 20 April 1993 & i5 iune 1993 and BRPD circular nol 10, dated: 25 November 2002. The valuation firnrs lrave used the fair value rnodel to revalue the class o1'property. The vatuatjon was not reviewed af'ter year 201 L a. The effective date of revaluation: The revaluation was completed by the valuers on 20.03.201 b. effbct on the assets have been accounted fbr on 30.03.201 I Valuer: Two separate independent valuer carry on the valuation iob. c. l. And The revaluation finr 'Commodity Inspection Services (BD) Ltd,'and'Royal Inspection International Lttl.'have been assigned to Method uscd for determination of fair value: finrs have used the market-based evidence to appraise the class ofpropefiy'Land and Building'. T'hey have used current market prices as ref'erence that has recently been observed for selling the land and buildlngs of same class o1'the same locality for appraising the lair value. Using the The valuer appraisal they have determined the amount ofrevaluation ofthe assets. (amounts in Taka) Bcralqaltp! of Cost lcss properry deprrciarion Class Location City Center, Head Office Bui)ding Chandaikona Branch ;r;i*-r Land Buildin Build Buildine Buildins Savar Branch Panthapath Branch RamDura Branch 2,111 ,623 967 572 2 1 ,944.055 32.663.087 10,2 r L Building 53,710.123 481,651,01s on -rornt 27,824,793 Denreciation t rl on 8.212.288 Amount of affi* t9 612 505 I .080.698 5l 27,018 24,1 89 65q 44,31 .216 t,656.443 31 1 5q1 s70 816,571 68?js0 l6 8,+.720 303, I 30 1,342,753 r,t94,163 I 1,988,48s 23,619,510 878, I 40,568 77 8,444" 82 8 14,147 ,079,109 12s,r8s 812 Nawabpur Road Branch ,;;lr"d 784.500,172 26.37 4.204 Khulna Branch t8 ffi" Deprcciation 47 ,166,51 I 954,998,771 I .251 2,536,9 35,607,995 155 1.101 r8!1 5, 3 591 861 Retained Earnings Opening balance Less: Issue ofcash dividend Less: Issue ofStock dividend 10% Add: Transferred from Profit & Loss Account Addr Translerred from Revaluation Reserve for Fixed Assets I8(a) (812,128,s00) (73 8,298,640) 894,644,805 813,771,806 23,619,st0 )!L ))) ;1t 984.276.383 878, I 40,568 904,866.021 787,091 .4-56 Consolidated retained earnings Opening Balance Less: lssue olcash dtvidend lor SIBL shareholders Less: Issue of Stock dividend I 0% Add; Transferred tiom current year retained earnings ofSIBL & its subsidiaries {note I 8.1(a)} Add: Transferred from Revaluation Resene for Fixed Assets of SIBL @ 28,s00) (738,298,640) 898,873,480 83 I ,850,638 (8 I 2, r <lo 14 1aa s?/ 1,015,230,51 7 904,866,027 11 610
54. Hoda Vasi Chowdhury & Co. Chartered Accountants Shafiq Basak & Co. Chartered Accountants SIBL has invested amount Investment Ltd. (SIBL of faka- 1,229,998,800 and Taka- 249,999,200 rn two of its subsidiarjcs 'SIBL Securitics l,td. (SIBL SI.)'and'SlBl. IL)' respectively. SIBL holds 99.999902% and 99.99968% of total shares of its subsidiaries 'SIBL SL ' and 'SIBL, IL.' respeclively rvhile the other shareholders olthe subsidiaries hold 0.000098%and0.00O32Yo oftotal shares respectively. Details ofthe shareholding positton is as under: sl no. I SIBL IL SIBL SL SIBL SL Percentage of holding of shares SIBL IL SIBL SL IL SIBL Social Islami Bank 2 Limited Alhaj Nasiruddrn 3 Mr. Md. Sayedur 4 Value ofshares No. Shares Shareholders 12.299,988 ? rqo o0l 1,229.998,800 100 I 1 99.999902% 24c),c)99,200 99 99968% 0 000008% 100 0 Rahman I Major (Retd.) Dr. Md. 1 I 100 100 0 000008% 0 00004% I 1 100 100 0 000008% 0 0000,1% I 100 100 0 000008% o.oooo1% 0 000008% 100 Rezaul Haque 5 Alha.j Sultan Mahrnood Chowdhury 6 Mr. Abdul Awal Panvary 1 Harndard Laboratories I 7 0 000008% 100 (Waqf) Bangladesh, Represented by: Mr. Anisul Hoque Mrs. Nargis Mannan Mr. Karnaluddrn Ahmed l0 Alhaj Sk. Mohammad 8 I 9 1 I t00 r00 100 0 000008% 0 00004% I I 100 100 0.000008% 0 00004yo 1 I 100 100 0 000008%, 0 00004% l I 100 100 0 00000rJ% 0 0000,1% 100.00% 100.00% Rabban l1 12 13 Ali Mr. A. Jabbar Mollah Mr. Md. Kamal Uddin Mr. Belal Ahmed 8.l 100 I 12,300,000 t 0.000008% 2,s00,000 1,230,000,000 0 000008% 250,000,000 Current year retained earnings Social Islami Bank Limited Profit alter tax 1 Less : Statutory Reserve 18. l.(a) Consolidated Current year retaiIed earnings Profit after tax of SIBILess :Statutory Reserve I .521,450,676 1,583,430.756 626.80-5.8 7l 769,65 8.950 894,644,805 8t3,771,806 ,52 I ,450.676 626,805,87 Profit(Loss) attributable to Group I,583,430,756 769,65 8,950 I 894,644,80s 813,771,806 Add: Prolit(loss) of subsidiaries Adrl: Currenl yeor profit/(loss) of subsidiories SIBL Securities Limited SIBL Investment Lrmited 5,091 ,57 4 I 8, (868,896) I 46,387 (67,s10) 1,228,677 18,078,846 4 15 Less: Non conlrolling interests ofproJit/(loss) afilibutablefor current yeqt SIBL Securties Lirrited SIBL Inveshnent Litntted (2) l5 2 Less: Common income (Dividend) for elimination SIBL Securlties Limited Profit/(Loss) attributable to parent 18(b) W Non-controlling interest SIBL Securities Limited Paid up capital Retained earnings Net Assets 1,230,000,000 t1 115 t7) 7,263,833,172 I ,230,000,000 28.731,598 1,2s8,737,s98 SIBL Investment Limited Paid up capital 250,000,000 (2,880,8 I 8) Retained eamings Net Assets 217,119.182 250,000,000 (2.0t 1,922) 217 ,988,078 Non-controllin g interests SIBL Securities Limited, @ 0.000098% ofnet assets SIBL Investment Limited, @0.0003270 of net assets Total non-controlling interest ffi 1,219 1,2rs 594 596 1,814 1,812
55. Hoda Vasi Chowdhury & Co. Chartered Accountants Shafiq Basak & Co. Chartered Accountants 31.12.2019 3 l. t2.201 8 Taka 19 Contingent liabilities 19. I Acceptances and Ilndorscments Bill Bill Bill Bill Bill Bankers' liabilitics (DP) Taka 6,354,279,800 14,212,414.226 Bankers' liabilities (BB/FO) 966,84 1,000 Bankers' liabilities (BB/LO) Bankers' liabilities (EPZ) 3,870,41 r ,000 539,23 I .000 200,899,000 9t4.702.237 4,090.6r7,000 I Bankers' liabilities Others 317,571,000 s34, r r 6,000 21,931,661,800 19.2 20,129,420,463 Letter of Credit L/C Bankers' l-lC Bankers' L/C Bankers' L/C Bankers' L/C Bankers' L/C Bankers' liabilities liabilities liabilities liabilities liabilities I (DP) (BB/FO) (BB/LO) 5,581 .4I 5.000 (Cash) 6. I I 5,576.805 iabi Jities (Others) 19.3 Letters of guarantees Lctters of guarantee 19.4 Bills for collection 796.93 1.000 8,000 .954,426,000 6,530. i 38.200 I ,974,8 i (EPZ) 5,2 84,059.000 1.070,142.000 I 502,530.000 6,17,01 ,1,000 529.965,314 62 1,582,000 15,775,047,149 1s,834,1s0,200 11,322,648,716 10,s32,813,16s In-ward biils for collection Out-ward Brlls fbr Collection r9.5 19.6 4,565,448,355 4, I 89,581,976 4,565,4.18,355 4,189,581,976 Other Contingent Liabilities Other Commitments Total Off-balance sheet items 53,594,806,020 50,68s,965,804 21 ,797 ,425,826 24,955,867, I 59 Income Statement (Note-20 to Note-39) Income: lncome fionr Investment (Note-20) Incorne from Investment in Shares & Securities (Note-22) Commission, Exchange and Brokerage Inconre (Note-23) 60,571,012 162.796,394 1,465,828,639 I ,600,655,7I 8 7 Other operatrng income (Note-24) 681,299,082 30,711,127,559 596,1 94, t 80 27,615,513,451 Expenses: Prolit paid on Deposits (Note-2 I ) Adrninistrative expenses Other operating expenses Depreciation on Banking assets I 8.428,552,565 3.1 I ,9u11 24,369,017,064 45,854, t 29 ,895,605 320,667,6 I 3 21,472,39s,877 6,143,1t7,s74 6,342,110,494 Income from Investment Profit on Murabaha 206,043,784 19s,412,33s Profit on Bat-Muazzal 18,263,667,034 Profit on Hire-Purchase Profit on Musharka 6,379,691,766 6)7S7tc))t5 32,436,760 38, I 63,397 Profit Profit Profit Profit on Bai-Salam 83.033,729 on Quard against MTDR, Scheme and others on Inland Document Bill Purchased on Foreign Docunrent Bill {1.) OO) lal 19) 515 775 r 5,878,28s,646 69,779,431 533,590,475 38 I ,907,836 442,936,981 Purchased 931 ,36.1,498 Profit on Investment against Mudaraba Deposit with other Banks and NBFIs Profit on other investlnents (Card, Wakalat fee etc.) Profit on Mudaraba 658.706,127 751 .602,249 3,653,686 235,65s,240 Profit on Ijarah 20(a) 6,063,978,530 2,1 67, t 95,355 377.693,251 Income over expenditure 20 I 3,395,5 75.890 79,4 r 9,586 2 I 23,8 80,802 5S lrd 10d 97,460,050 27,797,42s,826 24,9ss,867,1s9 27,797,425,826 24,9ss,867,1s9 Consolidated income from investmcnt Social Islami Bank l,td. Add: Income from investment of subsidiaries of SIBISIBL Securities Ltd. SIBL Investment Ltd. Grand total ofconsolidated investment income ffi tl7, 73,001 ,249 77, 117 ,171 ,840 I 610 000 27,872,037.075 2s,073,045,000
56. Hoda Vasi Chowdhury & Co. Chartered Accountants 21 Shafiq Basak & Co. Chartered Accountants 31.12.2019 31.12.2018 Taka Taka Profit paid on Deposits ProJil poid on deposits Mudaraba Savings Deposits (MSD) 641 .151 Mudaraba short notrce deposit (MSND) 448,0 I 0,965 MudaraLra renn deposit (MTDR) Cash I 2,7 I waqllund depostt 9,545,830 3,128,812,20s 16,975,360,s08 ptid 1,4s3,192,0s7 on borrowings & SIBL Mudnrafu Subordinate Bond Total profit paid on deposits and borrowings 2I(a) I ,71 6,648 )/ 7Sd \7\ 2,423,419,118 14,931,230,427 r,132,748,103 18,128,552,56s t6 18,.128,552,s6s 16,063,978,530 Consolidated Profit paid on Deposits Social Islami Bank Ltd. Add: Income from ihvestment of subsidiories of SIBL Securities Ltd. SIBL In\esrmenr Lrd S I BL 72.093.691 Grand total ofconsolidated Profit paid on Deposits 22 3,17,633,5 1 3 I I ,63 31.173,9 t4 Prolit paid on Scheme Deposits & others ProJil 503,706,574 ,594 18,500,646,256 73,726.464 16,137,704,994 Income from Investment in Shares & Securitics Income tiom In\restment rn Islamic Bond Income from Investment in Shares 3 89,846,5 54 7,013.878 Income fiom Mudaraba SLrbordinate Bond Dividend Incorne 251,076.251 t4 ))q 1n) 44,856,842 t12.991 .669 220,661 ,9t I I 760,574,012 52.633,999 462,796,394 Social lslarni Bank Ltd. has investment of Tk. 1325.00 crore in Bangladesh Govt.lslarnic lnvestlnent Bond fbr which 3.00%, average rate olincome ofthe Fund is to generate profit according to Mudaraba Principle. has been provided for January-December 201 9. The nature 22(a) Consolidated income from Investment in Shares & Securities Social lslami Bank Ltd. 760,574,012 Add: Incomefrom Inveslment in Sltares & Securities of subsidiuies of SIBL SIBL Securiries Ltd SIBL Investment Ltd. 462,7g6,3gq l5,t t2,125 12,410.948 953,5 80 Less: Common income for elimination SIBL Securitres Ltd. Grand total ofconsolidated income from Investment in Shares & Securities 23 Commission, Exchange 773,998,510 682,433,291 679,130,57 t) 783,39s,348 920.92s, 48 Commission Exchange income I ,:165,828,639 1,600,655,718 1,46s,828,639 1,600,65s,718 l 23(a) Consolidated income from commission, cxchange & brokerage Social Islami Bank Ltd. Add: Income from commission, e-rchonge & brokerage of subsidinries of SIBL SIBL Securities Ltd. SIBL Investrnent Ltd. Grand total ofconsolidated income from commission, exchange 24 & trrokerage ,796 60,111.196 t,526,240,435 86,709,888 t,6 Other Operatinq Incomc P&Tchargerecovered Courier Charges Recovery Services & & Others charges 1,476,629 1,946,r19,1 7,903, I 86 8,836,676 336,3 80,402 SWIFT/ Return charge recovered Other charges (Note: 24. I ) 24(a) .177,908,519 & Brokerage 5 I q)R 64q 3 56,948,rt50 17,207,878 289,61 0,21 s I8i 687,299,082 596, I 9,1,1 80 687,299,082 596,194,180 1,719.938 gJs )11 ,254,682 Consolidated other operating income Social Islami Bank Ltd. Add: Otlrer operoting Income ofsubsidiaries ofSIBL SIBL Securities t-td SiBL Investrnent Ltd. Grand total ofconsolidated income from other operating income 24.1 689,0?9,020 s9?,1ffi Other Charges Rent receipts Income lrom sale of tbrms Service charge on SIBL Cards Notice pay eamings Miscellaneous incorne @ 3.335,931 96,120 77,915.128 5,972,195 202,289,941 289,610,21s 2,540,779 172,070 72,214,818 4.572.650 101 ,691,364 18t,2
57. Hoda Vasi Chowdhury & Co. Chartered Accountants ,< 2s(a) Shafiq Basak & Co. Chaftered Accountants 31.12.2019 31. I2.201 8 Taka Taka Salary & Allowances Basic SaJary I ,3I 6,385.514 1,272,868,382 Allowances I ,234, I 83,3 89 I .2 t I ,751 ,483 Bonus 544,200,196 L/E Salary & Allowances Bank's Contribution to Provident fund Bank's Contribution to Social Insurance lund SIBL Croup lile Insurarrce Premiurn t44,104,121 26,608, I 43 127,084,546 I I 5.464.033 t2,694,694 I1.624.857 4,211,130 3,382,863,890 3,133,93,1,129 3,382,863.890 3,1J3,93,1,129 Consolidated expenses for Salary and AIlowance Social Islami Bank Ltd. Add: Salary and Allowance for subsidiaries 3l SIBL Securities l-td SIBI- Investment Ltd 31.018.682 3,1t3,882,572 26 Rcnt, Taxes, Insurance & Elcctricity 34,035,3 36 3,1 etc. Rent, Rates & Taxes (note: 26. I ) lnsurance (note: 26.2) 332.865.298 I Eiectricity, Lighting & Water (note: 26.3) 26(^) 195.6t7.232 41 ,t 40.497 93,005,865 308,498,3 r 83,060,8 r 0 573,01 1,660 s24,s89,668 573,01 1,660 524,589,668 Consolidated cxpenses for rent, taxes, insurance & electricity Social Islami Bank Ltd. Add: Rcnt, Taxes, Insurancc & Electricity etc. ofsubsidiaries SIBL Securities Ltd. SIBL Investlnent Ltd. 26,1 Rents, Rates, Taxes, Insurance Rent (Godown & 579,209,966 5J0,631,708 324,458,s 1 0 299,682, I 89 300.980 & others) Insurace Prerniurn in Transit Insurance Premium Safe/Vault lnsurance Premium on deposit Insurance Premiurn on Vehicle Other Insurance 8 304,596, I 87 3,116,72{) 3,902,170 332,865,298 308,498,3s7 807,239 9t1,523 6 575 qq) 7,237,901 6,034.218 7,093,s8s 129,712,448 114,063,326 I,60s,403 1,662,332 ) 1)1 1,743,228 111-) 133,030,500 Lighting & Electricity Lighting & Electricrtv Bill (Otlice) Lighting & Electricity Charges (Office) 82,78 8,662 5,760.829 5,092,8r7 Sub Total 88,549,490 79,049,626 Water & Sewe rage 73.956.809 4,456,375 93,005,865 4,01 l,l 84 83,060 Legal Expenses Legal Fees & Charge 5,860,73 I 55 qqq 5.1 53,988 Stamp Duties Other Legal Expenses 5,252,045 5,312.682 1 11,268,77s Postagc, Stamps, Telecommunication etc, Cable Network rent Telegram, Fax, Telex & other MobiJe phone charges 59,823 I 0,586,493 l)s ,n1 3il,04t 3, I 80.1 54 2,940,916 charges Telephone charges 28(a) 1 329,718,s77 I47,1.t0,497 28 4,544,6 nsu rances Insurance Premium in Counter ,1 369,3 80 4,989,087 Total Rcnts, Rates & 'Iaxes 26.3 6.0.12.040 Lighting etc. Rates and Taxes I 6,042,040 6. I 98.307 Rents Rent (Office) Rent (Garage) 26.2 7 5 33,030.s00 I 4s,000 3,24,1,988 5,075,478 6,7s0,34s 8,472,436 6,750,345 8,472,436 2.026.095 1,6t6.,1t7 8,776,440 10,088,8s3 Consolidatcd expenses for Postage, Stamps, Tclecommunication etc. Social Islami Bank Limited Add: Postage, Stamps, Telecontmunication etc. cxpenses lbr subsidiaries SIBL Securities Ltd. SIBL Investment Ltd. €
58. Hoda Vasi Chowdhury & Co. Chartered Accountants Shafiq Basak & Co. Chartered Accountants 31.12.2019 3 Taka 29 Table Stationery 13,86t,407 12,914,t00 Printing & Stationery 63,3 53.43 8 34,004,5 24,s r 0,8,10 26.636.21 ,1,1,361 42,770,403 & Magazine Televis:on & Radio Neon Sign, Banner etc. t t 297.85 5 4.093,871 I 5,895,240 132,578,322 160,996,133 132,s78,322 Consolidated expenseofStationery,Printing,Advertisementetc. Social Islami Bank Ltd. Stationery, Printing, Advertisement expense of Subsidiaries of SIBL SIBL Securities Limited. SIBL Investrnent Linrited. 3l(a) r3 60,996,1 33 1 3l ,7s0 8 r 4,821 Other Publicity 30 Taka Stationery, Printing, Advertisements etc, News Paper 29(a) t. I2.20 t 8 477 ,615 38 7.554 16I,473,808 132,965,876 Managing Director's salary and allowances Basic Salary 7,381,000 6.7 I 0,000 Allowances 3,000,000 1.000.000 Festival & other BonLrs 2,33 1,000 2,210.000 12,712,000 I 1,920,000 Directors' Fees & Meeting Expenses Directors Fee 2,349.881 2,23 8,800 Meeting Expenses 7, I 48,803 2,300,601 9,498,68,1 4,539,40I 9,2198,684 4,s39,40r 9,500 333,5 00 Consolidated Directors' fees & Nleeting Erpenscs: Social Islami Bank Limited Directors' Fees & Meeting Expenses of Subsidiaries of SIBL SIBL Securities Lirnited SIBL Inveshrent Limited .11 9,918,18,1 32 Shariah Supcrvisory Committee's Fces & 116,507 245,903 446,s07 245,903 Furniture & Fixtures 49,09 r ,006 79,97 5,897 64,322.198 Office Appliance & Equrpment 149,430,092 Shariah Council Meeting Expenses 33 4,872,90t Expenses Depreciation and Repair of Bnnk's Assets a) Depreciation of Bank's .{ssets (Annexure A) Land Building Computer Software I 8, I Vehicles I Books 35,533 4,505,903 50,359,435 I 37,01 I 7I,416 311,276,849 5,338 16,029.023 6,674,900 73,012 284,473,905 b) Repair on Bank's Assets Building Motor Car/ Vehicle Furniture Fixture I 80.456 r Software Maintenance fee I-lardrvare Maintenance lee IT Enable Service Charges Total of Depreciation and repair of Bank's Assets Consolidated balance of Depreciation Social Islami Bank Ltd. Add: Depreciotion on assels ofsubsidiories SIBL Securities Ltd 6,005,68 l I 3,151 ,189 1 ,788, I 38 3,415,073 Mechanical AppJiances 33(a) 24,08 3,826,5 84 I 3,479,884 I,261.250 104 4l ,786,658 15,471 ,595 66,476,405 )L123,707 t,400 1,61t,420 377,693,2s4 320,667,613 377,693,254 320,667,613 763 1.106,163 1.516,212 810,805 839,342 379,910,822 323,083, I 66 SlBl- Investlnent Ltd. Add: Repdrs & Mointflinance on ossets of subsidiuies SIBL Secunties Ltd. SIBL Inveshnent Ltd. @
59. Shaflq Basak & Co. Chartered Accountants Hoda Vasi Chowdhury & Co. Chartered Accountants 31.12.2019 3 T:rka 34 Other Expenses 20,235, I 80 t] .495,129 17,0'16.671 I Entertainment expenses 47,68 8,493 48,535,1 08 Traveling allowances 39,211,222 34,740,181 5,299,0 r5 2,02 I ,s30 0,91 4,576 ) ,11 s7d Local conveyance Petroleum, oil & lubricants Travelling Foreign 1 Bank charges Unilorm charges ,845,27 0 1,342.300 Subscriptions to lnstitutions & Others 7 ,984,120 4,808,067 )g CIB Charges Transportation charges News paper, Journal 56R 41.161 I ,251 ,930 963, r 60 6,857,724 5,285,93 8 190,',]21 246,395 & pertodicals 84,3 32 9 Washing charges 605,35 8 Training expenses Academy/ lnternal Training expenses at outside Banks 2,085,124 "845 .171 2,868,266 46'7 2l ,65t) Up keep of branches/offi ce pretn ises 6,703,808 6,217.414 Excise duty 1.246,150 2.098,s00 7,025.558 15,907,0r1 1 Computer charges 6,945,81 2 166,229,871 6,08 8,807 86,695,326 149,411 ,266 r,040,0rs 1,245,383 171,101,570 Security Services Cleaner Services 1 Others wages Photocopy expenses I Photography expenses Cash & Bank remittance charges 4)c) 45,853 4,687,823 4,41 0,800 rR Honorarium On-Line Expenses 3,86-5,3 50 3,211,200 36.214.s92 33.241 ,603 ATM Rent Hardware 3,071 ,143 42,048,8 87 3,419,018 6, I 53,839 4,s0l,sr0 Prolessional & Rating Fees Other Utility Bond issue related Expense 6,8 I 5,500 79,00t) 2s0,026,s00 209,299 74 8,695 265,040,772 50,001,483 Donatiotr to Others CSR Ralated Expenditure 4.495,7 89 3,974,300 Donation to Government Fair value adjustment for shares and securities rr) 5r5 Rlg I I 2,898,604 Gratuity expense 125,056,621 t20922,496 88,5 76,33 5 Miscellaneous expenses 780,s02 (o 7qn )s, l, 130,642,83s Consolidated Other Expenses 1,254,780,502 Social Islami Bank Limited Ald:Other Expenses for SIBL Securilies Limited 1,I30,642,83s t7 1,570.217 License, lees, renewals and incorporation expenses Enteftainment 2,086,9I s I 833,903 s79,145 8,3 87 4,605,54s 40,5ltt) 5) )15 26, I 50 2,3 Others Other Expensesfor SIBL Investment Limiled Incorporation and Other Regulatory expenses Bank charge and Excise duty 3 17,490 900 r,000 Others 1,265.6 Other Provision I 6.82{ 5,637,000 Provision for other assets (note: 1 3.2) Mudaraba Proflt Distribution (note: 13.6) 1 l. I 47.e5e.28 I 30,100,000 5,000 000 2,000,000 Provision for good borrorver (note: I 3.7) Provision for Clinrate Rrsk Fund (note: I 3.8) 35(a) 121 34,928 (, ) I q Meeting expenses Direct expenses on investment 35 6,083,257 1 Banks' clearing house charges 3.1(a) t.I2.2018 'Iaka 1,222.000 Consolidated other provision 23,637,000 Social Islami Bank Ltd. Ald: Provis ion for SIBL Securities Ltd. 33,322,000 su bsidi ari es ) lgt 709 (920,894) Provision for general resen,e Provision tbr inrpairment of margin loan Provision for dirninutiotl in value of investment 3,090,496 3,075, I 97 5,214,799 r 660 507 SIBt, Investment Lttl. (Provrsion for diminutron in value of inveslnrent) 3l,542,301 --l + )!.$l 10.877.5 I 0 I 5.642.073 48,713,292 - 82,035,292
60. Hoda Vasi Chowdhury & Co. Chartered Accountants Shaflq Basak & Co. Chartered Accountants 31. r 2.2019 l. t2.20 l 8 3 Taka 36 Provision on classified investment Provision on unclassrfled investlnent Provrsion orr Ofl-Balanee Sheet iterns Other provisions (note: 35) 36(a) 23,637,000 3,208,081,138 33,322,000 2,291,822,825 3,208,08r,138 2,294,822,825 tll : Provi si on fo r su bsi di o ri es 7, SIBL Securities Ltd. SIBL InVestment Ltd. ,713,292 5,241,199 48.1 13 ,292 2,660.502 Provision for Income Tax Current year provision (Note: 37. | ) Delerred'l'ax expense/(income) (Note: 37.2) 3,2rs,986,439 2,3 1,593,092,009 2.227.143.967 19,486,671 t,6 t r,s?8,6ttt ,,2 1,612,s78,681 2,264,863,993 37,12A,A27 Consolidated Provision for Income Tax Social Islami Bank Limited SIBL Securities Limited t7 Current vear provision Deferred Tax 12,31 1 ,791 (2 r 8,763) SIBL Investment Limited 37,1 (319,20r.263) (214.3s2.971) Consolidated Provision against Investment, Off-Balance Sheet itcms & Others A 37(a) 2,825,05 5,062 1 ,073,66 I ,495 2,085,452,904 )5 17q 7tq Social Islami Bank l,td. J/ Tal<n Provision against Investment, Off-Balance Sheet items & Others t1 ,309.117 (75,s I 0) 65{ r {q 1,62s,326,874 2,282,097,630 Current Year Tax Provision Provision on tax has been calculated based on Income Tax Ordinance,l984 as amended upto 2019 by the Finance Act, considering the allowances and disallowances. 37.2 Deferred Tax Expenses(Incomc) Defferred tax expense/(income) for liability/(asset) has been calculated as per Bangladesh Accounting Standard 38 I 2. Earning Per Share (EPS) SIBL has issued I : I right share for an amount ofTaka- 2,987,8 I 5,750 as approved in its 242nd Board Meeting held on 02 March 20 I I by the Directors ofthe Board. Before right issue SIBL had a total capital ofTaka- 2,987,815,750 as on 31.12.2010. The paid up caprtal was further enhanced by an amount ofTaka- 418,294,200,Taka-637,489,940, Taka-351,570,780 and Taka-738,298,640 issued as bonus share lbr the years ended 3l December 2010,2012,201 5 and 201 7. Now the total paid up capital atter right issue and jssue olbonus shares anrounts to Taka- 8,933,41 3,-560 rvith a total no. ol 893.341,356 shares having face value (@ Taka- 10/share. Net Proflt after Tax Number of ordinary shares outstanding Earning Per Share (EPS) (Prior year Restated) 38(a) I ,521 ,2150,676 893,34 (ii) 893,3,1 r ,156 1.70 1.77 1,525.679,352 1,60 I ,509,590 893,34 I ,356 893,34 I,356 Net Asset Value (NAV) Per Share: Net Asset Value (Consolidated) Net Asset Value (Solo) 1.71 Net Operating Cash Flows per share (NOCFPS): Net Cash flow fiom operating activities (Consolidated) Net Cash florv frotr operating activities (Solo) Net Asset Value (NAV) Per Share (Consolidated) (Prior year Restated) Net Operating Cash Flow Per Share (NOCFPS)(Consolidated) (prior year restated) Net Operating Cash FIow Per Share (NOCFPS)(Solo) (prior year restated) 1.79 17,3t2,127.963 15,787.369,506 17,271,330,473 15,149,879.196 Nunber of ordinary shares outstanding Net Asset Value (NAV) Per Share (Consolidated) (Prior year Restated) Net Asset Value (NAV) Per Share (Solo) (Prior year Restated) 38 ,583,430,7-56 Consolidated Earning Per Share (CEPS) Net Profit after Tax Nurnber of ordinary shares outstanding Consolidated Earning Per Share (CEPS) (Prior year Restated) 38 (i) r ,356 I 893,34 I ,356 19.38 893,34 I ,l-56 17.67 19.33 17.63 I 8.322.383,329 (9.085,s96,789 1 I ,322 ,013 ,1 1 5 (9,085.342,84s) 893,34 1,356 893,34 1,356 20.5t (r 0.1 7) (10.17) 20.s1 Notes for Cash Flow Statement (Note-39 to Note-44) 39 Income from Investment Investment profi t receipt Add: Opening profit receivable Less: Closing profit recervable 39(a) Consolidated income from invcstment Income from investment ofSlBL Income from investment of Subsidiarics of SIBL, SIBt, Securities l-td. SIBL Investment Ltd. Grand total 27,791,125,826 472.885,826 (665.ses,298) 24,955,867,159 145,606,462 (472,885,826) 27,604,716,354 24,828,s87,795 27,604,716,3s4 24,828,587,79s 7, ll 73.001,219 I t7,111 ,840 I ) 177,810 ,610,000 27,679327,601 2484sJ65,$s
61. Hoda Vasi Chowdhury & Co. Chartered Accountants Shafiq Basak & Co. Chartered Accountants Receipts from Other Operating Activities (Other than profit on sale of fixed assets) Exchange income 40 Rent receipts 31.12.2019 31.12.2018 Taka Taka 728,919,739 1 tls q1r 855, I 58,8(r2 P&Tchargerecovered Courier Charges Recovery Notice pay earnings & Others 4t o7r 70\ Consolidated receipts from Other Operating Activities (Other than profit on sale offixed assets) Receipts from Other Operating Activities of SIBL Receipts from other operating activities of Subsidiaries of SIBL SIBL Securities Ltd. SIBL Investrnent Ltd ,694,364 356,948.450 51,928,649 47,207.818 77,915_128 12,27 Payment to others Rent (Office) 1,4st,3s3,042 1,416,248,821 1,4s1,3s3,042 945.233 1,452,298,275 324,458,5 I 0 299,682,189 300,980 369,3 80 4,989,087 4,544,61 8 3,116,720 3,902.110 807.239 911 .523 6 i75 qq) 1,231,901 6,034,218 7,093,s8s 129,112,448 I t1,063.326 Insurance Premium for vehicle Other Insurance 1,60s,403 1,662,332 1,743,228 ) '7)1 82,788.662 Water and Serverage Legal Expenses 5,092,8I 7 4,0 1 ,268,7'/ 5 I Audit Fees 920,000 575,000 36,193,707 I 29,665,548 130 1,837,038,555 2,065,925,283 1,837,038,555 21,509,181 I 16.815 2,084,217,716 Net Profit after Taxation 67,540 1,86 l,6l 5,882 & liabilities ,450,676 I ,583,430,756 (192,709,412) (127,279,364) t,744,045,315 1,578,018,838 (s4,44s,609) (6s,766,286) 1,612,s78,681 2,264,863,993 3,208,081.138 2,294,822,82s 3 284,473.90s ,21 6.849 (1 ,313.7 4s .832) (1 .268,621 ,662) 6,836,171,745 6,5,1J,94J,005 1,521 (Increase)/Decrease Profi t Receivable (Increase)/Decrease Profit Payable on Deposrt Effects ofexchange rate changes on cash & cash equivalents Provision for Tax Provision for Investment, Contingent Liability & Others Depreciation & Arnortization of Fixed Assets Income tax paid Operating Profit before changes in opcrating assets & liabilities 42(a) Consolidated Cash flows from operating activities Net Profit atter Taxation (lncrease)/Decrease Profi t Recelvabie (Increase)/Decrease Profit payable on Deposit Effects ofexchange rate changes on cash & cash equivalents Provision for Tax Provision tbr Investment, Contingent t,iability Depreclation & Alnortization of Fixed Assets 5 2,06s,925,283 I 8,205,61 9 assets l 245,903 .7 & Operating Profit before changes in operating 84 4.539,40 119,s22,7 49 Cash flows from operating activities ,1 66,176.105 Other Expenses (note: 34) Consolidated payment to othcrs Social Islami Bank Limited Pa1t4sn1 7o others- Subsidiaries SIBL Securities Lrmited SIBL Investment Limrted il 0,586"493 446,507 Zakat expenses t_) 5,160,829 9,498,684 Repairs and N4aintenance '1 73,956,809 1.456,37 5 1 Directors Fees and Meeting Expenses Shariah Supewisory Fees & Erpenses Reconciliation of Net Profit after Taxation 172,070 1,4 I 8,028,7s8 Rates and Taxes Lighting and Electricity Bil) (Otlice) Lighting and Electncity Charges (Office) 4,818 96,120 1,416,248,821 t,779,938 Insurance Premium for cash in counter Irrsurance Prerniurn lor cash in transit Insurance Premium for cash in safe/ vault Insurance Premium on deposit 42 4 57) nS0 I0t 336,3 80,402 Rent (Garage) Rent (Godown) 41(a) 8,8 36.676 202.289,941 SWIFT/ Retum charge recovered Service charge on SIBL Cards Income lrom sale of forms 40(a) 1.946.494 7,903, I 86 < Miscellaneous income Services & charges 2,514,119 t,476.629 & Others Income tax paid Operating Profit before changes in operating assets & liabilities 1 1 1 ,525,619,354 (r92,709,472) 1.7 44,045,31s (s4,44s,609) 1 ,62s ,326 ,81 4 3,2 1 5,986,439 312,623,612 I,60r,509,605 (121 .2',19.364) r,s78,0r 8,838 (65.166,286) 2.282,091 ,630 2.343,s36,1t6 286,0s0, r r7 (1.326.270.037) ( l ,285,952,527) 6.850.236.475 6,672,214,128
62. Hoda Vasi Chowdhury & Co. Chartered Accountants Shafiq Basak & Co. Chartered Accountants 31.12.20r9 Taka 43 3 'l'aka Cash Increase/ Decrease in Other Assets Stock ofstationery, stamps and printing materials etc (valued at cost) Advance rent 36,651,3 t5 38.940,292 236,7 83.150 240,368,398 Security Deposit Branch Adjustments (SIBG) (Notei 9.1 ) Suspense Accounts (Note: 9.2) 3,441,126 3, I 56,556 2,950,929,983 7,101,009,r 06 92,702,080 219,594,442 I Other Prepayments Receivable from M/S. Stock & Bond and SIBL Securities Ltd. Advance Income Tax Receivable frorn SIBL Securities Lirnited Receivable from SIBL Investment Limited I 64.210.064 64,216,s1t 21,482,142 122,0'14,364 0,685, r 52,8s4 9,371,407,022 72,000,000 Protested Bills against Investment Receivable from Ofl:.shore Banking Unit Dividend Receivable Account I,883,690 r,820,060 325,014,570 3t9,377,570 36,8 82,2 78 62.48I ,496 562, I 30,020 4s8,442289 Profit Receivable fionr Mudaraba Subordtnated Bond Others (Note: 9.3) 99,61 6,438 I 10,969,426 Diff'erence betrveen (2019, 201 8) 2,7 53,923,163 Advance Income Tax 1,3 I 3,745,832 Net change in Other Assets 4,067,668,995 ,456,41 I 18,053,772,s98 (4,r20,448,810) 1,268,621,662 (2, Consolidated cash increase/decreasc in other asscts Social Islami Bank Limited i 5,299,849,4i5 Caslt lncrease/ Decreose in Other Assets of subsidiories 44 9,428,082 3I 15,299,849,435 43(a) t. 12.2018 I 8,053.772.598 2.177,622,105 ) ,?/. )rl lio 17,477,471,540 20,279,994,857 Diftbrence between (201 9, 201 8) Advance Income Tax 2,802,523,116 I 146 '?O r)17 (r1,328,291.129) I aRr 051 5r7 Consolidated net change in Other Asscts 4,128,793,353 (3,042,338,602) Cash Increase/ Decrease in Other Liabilities Adjusting A/C (Cr.) Balance Other Payable Compensation and Rent Suspense (note 13 3) BEFTN Ad.justment Account I 0,231 ,,10s 12,263,717 2,870,657,332 35.998.977 r 2,030,80.1 3,079,086 t,874,740,496 21.672,552 Parking Account _51 23,642,698 2,952,794,730 ATM Settlement for Q-Cash Cash Increase/ (Decrease) in Other Liabilities Difference between (2019 & 2018) Add: Transfer to Provision for Investtnent from Compensation (ln Yr. 2019) Add: Zakat expense transf-erred to Sadaka Fund Less: Zakat distributed during the year Less: Gratuily transferred & Paid during the year Less: Written of? Waiver of investment during the year 44(a) Cosh lncrease/ Decrease olSocial Islami Bank Lrrrited iil Other Liobilities ofsubsidiaries Difference between (20 I 9, 20 I 8) Other changes in other liabiltties of Social Islami Bank Limited Net change in Other Liabilities-Social Islami Bank Limited 1,004,266,2s6 (2,216,321,248) 1,004.266.256 (2.216.321.248) I 55.62 1 ,1 73 141),522,719 8 t,0,10,968 1 50,1 82,6 1 29,665,s48 1 7 92,567,800 232,104 3 I ,734,980 1,196,634,229 83,067,5 8 5 (2,1t2,340,545) 2.952,794.130 1.948,527.874 328,766,.1:18 232,007,92-5 3,281,560,578 2,r80,s35,799 I ,l]t ,021,77() (2.I 6I .796. 90) 192,367.9'14 101,212,801 I 1,293,392,753 (2,057,583,383) Cash and Cash Equivalent Cash rn Hand Balance with Bangladesh Bank & Sonali Bank [.imited (as agent ofBangladesh Bank) Balance with Other Banks & Financial Institutions-in Bangladesh Balance with Other Banks 4s(a) 1,948,527,874 Consolidatcd cash increse/dccrease in other liabilities Cash Increase/ Decrease in other liabilities 45 34,004,885 2,919,269,s20 28,949,112,602 9,t 14,429,400 23,735,8 l 0,3s9 4,09?,164,021 t3,414 2,3,14,258.3I5 7,010,64t.984 & Financial Institutions-outside Bangladesh Consolidated Cash and Cash Equivalent Social Islami Bank Limited Crch and Cash Equivalent of subsidiaries SIBL Securities Lirnited. SIBL Inveshnent Lirnited. 854 42,097 ,161,021 720 100,51 9 s,20t 42.091.269.741 33,474,,106,s 1 2 121 I 16,494 5,201 33,474,528,207
63. Hoda Vasi Chowdhury & Co Chartered Accountants 46 Shafiq Basak & Co. Chartered Accountants Number of Employees ofTk. 36,000 p.a or above The number ofer.nployees engaged for the rvhole year or part thereofwho received a total remuneration 47 rvere 2957 Audit Committee The Board of Directors in its 390th meeting (Emergency) held on 30.03.2017 reconstituted the Board Audit Cornmittee cornprising with the following: Prof-essor A J Status with the Status with the Bank Name Sl. No. M ShalLul Alam Bhuivan Ph.D I Committee I nclependent Dlrector 2 Mr. Md. Karral Uddin Director 3 Dr Md. Jahangir Director I lossain Cha:rman fuf i .,"U". Member The Audit Committee ofthe Board rvas duly constituted by the Board ofDirectors ofthe Bank and reconstituted in the 4l2th Board ofDirectors Meeting held on 21.03.2018 in compliance with the Bangladesh Bank and Bangladesh Securities Exchange Commission Guidelines. The Audit Committee assists the Board in fulfilling its oversrght responsibilities where accountabriity stands tbr financial reporting process, Internal Control assess the activities & The Board Audrt Comrnittee had 138 nos. (One hundred thiity eight) lvleetrngs in the previous years since inception in the year 2003, out ofrvhich Meetings were conducted in the Year2019 and the attendance ol'the members was as follows: 0z[ System, Internal and Extemal audit process, management of the risks of the Bank. The Cornrnittee review, inonitor and performance olthe Bank and establish the poJicies and procedures which comply with the exrsting laws & regulations. Meetings of the Audit Committee: Director SI. No. Tenure of No. of Meetings No. of Meetings Membership Held Attended 4 4 4 4 4 4 till l I Prolessor A J M Shafiul Alarr Bhuiyan Ph.D 21 03 2018 to 2 Mr. Md. Karnal Uddin 2l.03.20l8totilldate Dr. Md Jahangir Hossain 2 3 _l L03.20 I 8 to till date date Disclosure by Audit Committee: The Committee reviewed the Quarterly Financial Statements 2019 of the Bank and subsequently recommended to the Board tbr consideration and approval. The Committee revier.ved the integrity of the financial statements of the Bank to ensure that these reflect a true and fair vielv of the Bank's state of aflairs. The Committee while reviewing the financial statements ensured that proper disclosure required under Intemational Accounting Standards as adopted in Bangladesh have been made and also complied with the Companies Act and various other rules and regulations applicable for business. The Comrnittee discussed r.vith the statutory auditors about the nature and scope areas of concern. The Committee also reviewed the financial statements/investments Limited. of audit as well as had post-audit discussions to of the subsidiaries: SIBL Securities L,imited and Sll]t- address Investment Pursuant to Condition No. 3.4. I olthe Corporate Governance Guidelines issued by BSEC, the Committee reviewed the Internal Control System and Financial Statements. The Committee observed that there was no contlict of interest or material defect in the intemal control system ofthe Bank. The Committee revieu,ed and ratified the Annual Health Report of SIBL for the year-2O19 and recommended to the Board for consideration and approval The Committee reviewed the Internal Auditors Reports and suggested appropriate actions where needed. The Internal Auditors were ofall the branches ofthe Bank. advised to carryout audit The committee specially focused on the Capital Adequacy Ratio (CAR) of the Bank and gave emphasis to increase/maintain the CAR strictly in compliance with the BASEL-Ill guideline. The Committee recommeded to implement effectively all aspects of BASEL-lll specially Risk Based Capital Adequacy (RBCA), Liquidity Coverge Ratio (LCR), Leverage Ratio (LR) and Net Stable FLrnding Ratio (NSFR) as per Action Plan/Roadmap of Bangladesh Bank. The Committee reviewed the compliance position, policies, regulations and applicable larv in general. The Committee observed that risk management associated with the Banking business was adeqriately controlled.
64. Hoda Vasi Chowdhury & Co. Chartered Accountants Shafiq Basak & Co, Chartered Accountants Related Party Disclosures NalreoftheFirms/BusinessOrganizationswheretheDirectorsofthesocial 48 48.1 SL Name No I Professor Md. Anwarul Azim Islami BankLimitedhavegotinterestason3l Arif NIL Chilrmon (Representatiw of Hasan Abasan (Pt)t.) Ltd.) 2 Mr. Belal lhmed Vice Clrairmnn Managing Director Unitex Spinning Limited (Representative of Unitex Steel Mills Limited) Unitex Unitex Unitex Unitex Unitex Composite Mills Limited LP Gas Limited Petroleuln Limited Ceurent Ltrnited Steel Mills Limited Padrra Wears Limited 3 l.,ld. Soyedur Rahntan Managing Director Vice Chrirman (Representalive of Prnsad Parodise Resorts Limited) I l,odestar Fashrons Lir:rited Mid Asra Fashions Limited Md. Kamal Ucldin Managing Director Chittagong Builders & Machinery Ltd. (Represenlotive of Lion Securities an(l Investment Limite(l Merchant Securities Limited Sifang Securities Limited Director Direclor Human Resources Development Co., Ltd. Central Hospital (Pvt.) Ltd. ASM Chemical Industries Ltd. Universal Health Services & Research Ltd. Cltairmtn Mercantile Insurance Company ltd. Propfietor CBM Consortrum 5 A.|rs. Nargis Mannan Nil 6 Director Dr. Md. Juhangir Hossain Director Nit of Re li t Mr. Arshadrl Alant (R epres enl dt i ve 7 b Ie E nt r ep r en eurs Li mit ed) Managing Director Director MK Electronlcs Ctg. (Yunusco) (Represmtalive of Leader Business Enterprise Limiled) Jesco Capital Managetnent Ltd. Uni-Trade Intcrnational Ltd. Nishat Traders Ltd. Chdrman Jaba and Brothers C&F (Pvt.) Ltd. Direclor Northern General Insurance Cotxpany Metro Diagnostic Center L,td. Jesco Brrrgladeslr Lrd. Bengal Corporation Ltd. Bengal Center (Topkhana) ABM Torver (Gulshan) 8 Mr. AIi Hoson Md. Mahnnrd Ribon Chairmrm M/S. Mahmud Ribon Director (Representdtive of Dynamic Venture Limited) 9 Mrs. Jebunnesa Akbar Nit Director (Representative of Unitex Cement Limiled) 10 Mr. Md. Foysal Ahmed PaNrtry Direclor Directot (Representotive of Globnl Trading l1 Professor M/S. Patwary Potato Flakes Lrmited M/S. Greentech Greenhouse Bangladesh Limited Northern General Insurance Company Limtted Corpordion Limited) A J M Shafiul Alont Bhuiyon, PLI.D Nit Independent Director 72 Professor Mohumned lllizanur Rahman, PH.D Independent Director DitAl(4 Decernber20lg Name of Firms/ Business Organizations \Yhere thc Dircctors SIBL havc got interest Nit of
65. Hoda Vasi Chowdhury & Co. Chartered Accountants Shafiq Basak & Co. Chartered Accountants 48.2 Significant contracts where Bank is aparty and where in Directors have interest: Nil 48.3 Lending Policies to Related Parties: Lending to related parties is effected as per requirenrents of Section 27( I ) of the Bank Conrpan ies Act, I 99 A I Related Party Transaction Name of the Name of Party Relationship Director Nature of t rrr estmerrtl Outstanding Status Amount (Taka) Funded Liability SIBL Securities Ltd N/A SIBL Foundation l''lospital & Dragnostic Center B Quard 8000.00 lac UC QLLard- E- Hasana i 0045.821 lac UC Subsidiary A concern ofSIBL N/A Foundation Investment Policies to Related Parties Lending to related parties is effected as per requirements ofsection 27 (l ) ofBank Companies Act,1 991 49 C Bustness other than Bankrng business with any related concern of the Dlrectors as per Section I 8 (2) of the Bank Compan ies D E Shares issued to Directors and Executives without consideration or exercisable at discount: Act, I 99 I : N il lnvestrnents in the securities ofDirectors and their related concern: Nil Nil Post Balance Sheet events (IAS-10) No material events occurring after balance sheet date came to our notice, rvhich could affect the values reported in the financial statements significantly. l. Dividend The Board ol Director has authorized the tinarrcial statements lor issue year ended 3 I December 201 9. 2. Covid on and recommended stock drvidend @ 5 % &. Cash dividend @ 5% for the l9 Subsequent to year-end, on 1 I March 2020, World Health Organization (WHO) declared a global pandemic due to Corona Virus related respiratory disease commonly called as COVID-19. To contain the spread ofthis disease, along with nrany other countries ofthe world, Government of Bangladesh has also taken a number ofmeasures such as declaration ofgeneral holiday, enforcement oflock down, social distancing etc. As a result of these measures all business and econonric activities are adversely aflected which would also impact the Group and the Bank as well. Managernent as considered COVID l9 as subsequent event and in accordance reporting period that is indicative ola condition that and economic condrtions as a result of with tAS 10 has concluded that this is a non-ad.justing event (i.e. an event after the arose after the end olthe reportrng period) because the significant changes in i:usiness activities COVID I 9 events took place well after the reporting date of 3 1 Decernber 201 9. AJthough the business operation and profitability of the Group and the Bank are inrpacted dLle to COVID I 9, but as the situation is constantly changing and there is no certainly at present as to how long the situation will prevail, the potential irnpact ofCOVID I 9 related matters on the Group's operation and financral results cannot be reasonably assessed." 50 General (i) Figures appearing in these financial statements have been rounded offto the nearest'laka. (ii) The expenses, irrespective ofcapital or revenue nature, accrued/due but not pard have beerr provided for in the books (iii) Figures ofprevious year have been rearranged wherever necessary to conform the ol the Bank. curent year's presentation. (iv) All types offinancing made to the clients have been shown under the head'lnvestment'whereas investment rnade in ditferent shares and securities ofGovemment and others companies are shown as investlnent shares and securities. (V) The Bank incurs expenditure in relation to its Corporate Social Responsibility (CSR) throughout the year. The budget fbr the CSR erpenditures are met up from various source rncluding zakat and other sources. The Climate Risk Fund is also a part ofthrs CSR expenditures. @ ,ri::$ &
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75. Hoda Vasi Chowdhury & Co Chartered Accountants Shafiq Basak & Co. Chartered Accountants Annexure-G SOCIAL ISLAMI BANK LIMITED oFF-SHORE BANKING UNrT (OBU) BALANCE SHEET AS AT 3I DECEMBER 2OI9 31.12.2019 Note(s) 31.12.201 8 Taka I.ISD Taka USD PROPERTY AND ASSETS Cash Cash in hand (lncluding Foreign Currencies) Balance with Bangladesh Bank (lncluding Foreign Currencies) & its Agent Banks Balance with other Banks and Financial Institutions 3 In Bangladesh Outside Bangladesh I ,291 09,648,944 3"276,718 271,9t6.651 109,648,944 3,276,718 274,916,654 2,213,479,499 )4 575 )15 2,06 l ,861 2,213,479,499 24,575,225 2,061,961,392 ,501 1 1,291,507 Placement with Banks & other Financial Institutions Inyestments in Shares & Securities Govenrment Others I nvestments Ceneral lnvestment etc. 4 26,0'.71,608 ,3 92 Bills Purchased and Discounted ,, Fixed Assets including Premiscs, Furnitures and Fixtures Other Assets Non Banking Assets Total Assets 71,608 5 278 21,598 352 29,498 6 434,120 36,882,278 714,711 62,181,196 2',7,797,913 ?1521,009 2,39e,28e,03e 20,671,617 1,7J1,602,815 T,IABILI'TIES AND CAPITAL Liabilities Borrowing from Banks & othcr Financial Institutionr ,7 17,525,210 I,487,890,290 Deposits and Other Accounts 8 9,020,430 765,834,s30 4,071,296 31t,813,170 8.1 8,948,438 759,722,389 4,058,922 340,543,563 6,112"141 15.37 4 1,289.906 Mudaraba Savings Deposits Mudaraba Term Deposits Other Mudaraba Deposits Al-Wadeeah Current & Other Deposit Accounts 71.992 8.2 Bills Payable 1,252,173 Other Liabilities 106,309,500 322,852,694 3,848,065 Deffered Tax Liabilities/ (Assets) Total Liabilities 27,797,913 2.360.034.320 28,597,009 2U97,813 2,360,034,320 28,597,009 2,399,289,039 Capitrl/Sharcholders' Equity Paid-up Capital Statutory Reserve Foreign curency translation gain/(Loss) Retained Earnings Total Shareholders' Equity Total Liabilities & Shareholdcrs' Equity aWa * __23e2282_,03e_
76. Hoda Vasi Chowdhury & Co. Chartered Accountants Shafiq Basak & Co. Chartered Accountants 31.12.2019 USD Off-Balance Sheet Items CONTINGENT LIABILITIES Acceptances and Endorsements Irrevocable Letters of Credit (including Back to Back Bills) Letters of Guarantee Bills lor Collection Other Contingent Liabilities Total OTHER COMMITMENTS Docunrentary credits and short temt trade related transactions Fonvard assets purchased and fbrward deposits placed Undrarvn note issuance and revolving undenvriting Undrawn fbrmal standby tacilities, credit lines and other commitments Total Total Off Balance Sheet ltems Contingent Liabilities including 31.12.201 Taka LISD I Taka
77. Shafiq Basak & Co. Chartered Accountants Hoda Vasi Chowdhury & Co. Chartered Accountants Annexure-G SOCIAL ISLAMI BANK LIMITED OFF-SHORE BANKING UNIT (OBTI) PROFIT AND LOSS ACCOUNT FORTHE YEAR ENDED 3I DECEMBER2Ol9 31.12.2018 31.12.2019 Taka T]SD Investment Income Less: Profit paid on Deposits Net Investment Income 1.6'79,016 (442,588) Taka USD 142.548,423 (37 ,57 5.7 | 4) 1,236,428 104,912,708 5.024.972 ( r, r 89,908) 3,835,0611 42 1,595, l 55 (9e.833.286) 321,761,86t1 Comrrission, Exchange and Brokerage Other Operating lncome Total Operating Income & allowances Rent & Utilities Salary Depreciation on flxed assets 15.467 t,313,172 I,251,895 106,285,880 66,594 5.65 3,860 69 5,900 66,661 5,659,760 Others Total Operating Expenses 12.650 3,847,114 56,371 88 56,459 l ,06 1,327 322,823,196 4,729,489 7,374 4,736,863 Profi t/(Loss) bcforc Provision Specific provisions for Investment Ceneral Provisions for Investment General Provisions fbr off-Balance Sheet exposure Total Provision -Iotal Profit/(Loss) before Tax I,185,231 100,626,127 3,791,255 318,086,332 Prol'ision for Income Tax Nct Profi t/(Loss) aftcr'fax I,185,231 100,626,121 3,791,255 318,086,332
78. Shafiq Basak & Co. Chartered Accountants Hoda Vasi Chowdhury & Co. Chartered Accountants Annexure-G SOCIAL ISLAMI BANK LIMITED OFF.SHORE BANKING UNIT (OBU) CASHFLOW STATEMENT FORTHE YBAR ENDED 3I DECEMBER2Ol9 31.12,2019 31.12.2018 Taka USD Tal<a 1,6"t9,016 142,548.123 Cash Flow from operating activitics Investment Income receipt (442.5 88) Profit paid on deposits Dividend receipts Fees (37 ,57 5 421,595,155 (99,833,286) .7 | 4) & commission receipt Cash payments to employees (66,s94) (5,653,860) (4,729"489) 5,467 1,313.172 1,061.327 Cash payments to suppliers Income tax paid Receipts from other operatir-rg activities t Payments lbr other operaling activilies Operating profit belbre changes in operating assets and liabilities Changes in operating assets and liabilities 1,185,301 100,632,020 318,093,707 Statutory deposits Net trading securities lnvestments to other banks Investment to customers Other assets Deposils from otl-rer banks Deposits received from customers ( 1,496,383) (151.618,107) 3t0,294 25,599.218 (3,149,437) (246,7 t2,585) 4,946,134 424,00 1,060 (3,78 r, r 92) (317 ,17 s "215) 4.531,608.51 8 78,409.567 (2.769.671.154) (1,794,111.269) Other liabilities on account of customers A. Trading liabilities Other liabilities Suh Total Net Cash flow from operating activities Cash flows from investing activitics Proceeds frorn sale ofsecurities Payment for purchases of securities Proceeds from sale offixed assets Purchases ofpropefty, plant & equipment's r)lqq57i7'l 70,585) (265,905,629) (173,721,912) (1,985,28,1) (165,273,609) 114,3'11,795 (3,1 69 5,900 7,371 69 5,900 7,374 Purchase/Sale of subsidiaries B. Net Cash flows from investing activities Cash florys from financing activities Receipts from issue of debt instruments Payments for redemption of debt instruments Receipts from issue ofright shares/ordinary share Dividend paid in cash C. Net Cash flow from financing activities D. Net increase/(decrease) in cash & cash equivalents (A+B+C) (1,985,211) (165,261,711) E. Cash and 3,276,718 274,916,654 130,537,48,1 F. l,2gl,5o7 709,648,911 271,916,651 cash equivalents at the beginning ofthe year Cash and cash equivalents at the end ofthe year (D+B) 144,379,169
79. Hoda Vasi Chowdhury & Co. Chartered Accountants Shafiq Basak & Co, Chartered Accountants Annexure-G Social Islami Bank Limited Off-shore Banking tlnit (OBU) Notes to the Financial Statements For the year ended 31 December 2019 I Status ofthe unit The Bank obtained the Off-shore Banking Unit ("the Unit") permission vide letterNo. BRPD(P-3)714(l l9)/2010-4652, dated: 1 1 November, 2010. The Bank commenced operation o1'this unit from 02 May 2012. The Off-shore Banking Unit is governed under the rules and guidelines of the Bangladesh Bank. Its office is located at SIBL Head Of'tlce, City Center 90/1. Motiiheel Comrnercial Are4 Dhaka 1000. 1.1 Principal activities The principal activities of the unit are to provide all kinds of commercial banking services to its customers tl-rrough its olFshore Banking Units in Bangladesh. 2 Significant accounting policies and basis of preparation of financial statements 2.1 Basis of accounting The Off'-shore Banking Unit maintains its accoun ng records in USD fiom rvhich accounts are prepared according to the Bar.rk Companies Act. 1991, International Accounting Standards (lAS), International Financial Reporling Standard (IFRS) and other applicable directives issued by The Bangladesh Bank, in particular, Banking Regulations and Policy Department (BI{PD) Circular No. l5 (09 November 2009). 2.2 Use of estimates and judgments The preparation of financial statements requires management to make judgrnents, estimates and assumptions that afTect the application of accounting policies and the repolled amounts ol assets, liabilities, incorne and expenses. Actual results mav differ frorn these estimates. Estimates and underlying assumptiorrs are revieu,ed on an ongoing basis. Revisions to accotrnting estimates are recognised in the period in "vhich the estirnate is revised and in any future periods affected. 2.3 Foreign currency transaction a) Foreign currencies translation Foreign currency transactions are converted into equivalent Taka using the ruling exchange rates on the dates of respective transactions as per IAS-21" The Ef'fects of Changes in Foreign Exchange Rates". Foreign currency balances held in US Dollar are converted into Taka at weighted average rate of inter-bank market as determined by Bangladesh Bank on the closing date olevery month. Balances held in foreign currencies other than US Dollar are convefied into equivalent US Dollar at buying rates ofNew York closing ofthe previous day and convefted into Taka equivalent. b) Commitments Commitments for outstanding forward fbreign exchange contracts disclosed in these financial statements are translated at contracted rates. Contingent Iiabilities/commitments for letter of credit and letter of guarantee denominated in foreign currencies are expressed ir-r Taka tenns at the rates ofexcharrge ruling on the balance date. c)'I'ranslation gains and losscs The resulting exchange transaction gains and losses are included in the translation ofnet investment in foreign subsidiary. profit and loss account. except those arising on the Cash florv statement Cash florv statement has been prepared in accordance r'vith the Intelnational Accor.rnting Standard-7 " Cash Flow Stalement" under direct method as recommended in the BRPD CircularNo. 14, dated June 25, 2003 issued by the Banking Regulation & Policy Deparlment ol' Bangladesh Bank. /1/"a' 4>i',A\ 6"@lii ,:?i:-$B/ / '.y,v_t1n " .-:,/
80. Hoda Vasi Chowdhury & Co Chartered Accountants Shafiq Basak & Co. Chartered Accountants 2.4 Reporting period These financial statements cover from January 0 I to December 3 I . 20 I 9 2.5 A provision is recognised in the balance sheet u,hen the unit has a legal or constructive obligation as a result ol a pasl event and it is probable that an outtlorv of economic benefit will be required to settle the obligations. in accordance rvith the IAS 37 "Provisions, Contingent Liabilities and Contingent Assets". 2,6 Profit income In terms of the provisions of the IFRS-15 "Revenue from contract r,vith customer", the profit income is recognized on accrual basis. Fees and commission income Fees and commission income arises on services provided by the units are recognized on a cash receipt basis. Comrrission charged to customers on letters ofcredit and letters ofguarantee are credited to income at the time ofeffecting the transactions. 2.7 Profit paid and other expenses In terms ofthe provisions ofthe IAS - 1 "Presentation of Financial Staten-rents" interest and other expenses are recogrized on accrual basis. 2.8 Allocation of common expenses Operating expenses in the nature of salary, rent, rates and taxes, management expenses, printing stationery, etc. are allocated as 3 Balance with other Banks and Financial Institutions Balance with other Banks and Financial Institutions consists nostro account balance of OBU unit of SIBL which is held rvith Mashreq Bnak, New York. 4 General Investments a) General investments of Off-shore Banking Units are stated in the balance sheet on net basis. b) Profit is calculated on a daily product basis but charged and accounted for on accrual basis. Profit is not charged on bad and loss investments as per guidelines ofthe Bangladesh Bank. Records ol'such interest amounts are kept in separate mentorandunt accounts. 5 Fixed Assets Fixed assets includes Furnitures and office equipments used by the employees of OBU unit. 6 Other Assets Other assets include accounting standards. profit receivable lrom investrnent clients rvhich are accounted for on accrual basis as per relative 7 Borrowing from Banks & other Financial Institutions & other Financial Lrstitutions includes amount received from SIBL as paft of fund rvhich rvill be in due course, balance of ivhich is eliminated in the consolidated balance sheet of SIBL to avoid improper Borrowing from Banks returned/ad.ir.rsted double reflection of fund. 8 Deposits and Other Accounts 8.1 Mudaratra Term Deposits Mudaraba Term Deposits includes deposits procured from various local and foreign banks/institutions which includes: amon g the foreign banks/institutions: l. Noor Bank l-td. Dubai 2. Ll Bank Ltd. Dubai
81. Hoda Vasi Chowdhury & Co. Chartered Accountants Shafiq Basak & Co. Chartered Accountants 8.2 Al-Wadeeah Current & Other Deposit Accounts Al-Wadeeah Current 9 & Other Deposit Accoulrts includes profit payable accollnt and sr:ndrl, deposits. General a) These financial statements are presented in BDT, rvhich is the Bank's firnc onal currenc)'. Figurcs appearir-rg in these financial statements have been rounded off to tl-re nearest BDT. b) Assets and liabilities & income and expenses have been convefied into Taka currency @ US $1 : Taka 84.90 closing rate as at 31st December 2019. c) Fixed assets ol'this unit are appearing in the books ofthe main operation ofthe bank and depreciation is also charged to Profit & loss Accounts of the main operation of the bank.
82. Hoda Vasi Chowdhury & Co Chartered Accountants Shafiq Basak & Co. Chartered Accountants Annexure-H SOCIAL ISLAMI BANK LIMITED HIGHLIGHTS OF PERFORMANCE (Only Bank-Solo basis) (Amount in Taka) SL Particulars no. 31.12.20t8 31.12.2019 r,285.060 1 Paid up Capital 2 Total Capital ( Core +' Supplementary) 3 Capital Surplus/(Deficit) 4 Capital to Risk-weighted Asset Rirtio (CRAR) 5 Total Assets 345,056,231.627 307.305,32 r.441 6 Total Deposit 287,936,655, r 09 248,324.489,64() 7 General Investment 264,268,s89,649 238.651. 8 Total Contingent Liabilities and Commilntents 9 Investment-Deposit (lD) Ratio ( % l0 Percentage of classified investment against total inveslments l1 Profit before Tax and Provision 6.342.n0.494 6,143.1t7,574 t2 Profit after Tax and Provision 1,521,450.676 r.583.430.756 t3 Amount of classified investment 14 Provisions kept against classified investment 15 Provisions surplus 16 Cost of Deposits l7 Profit Earning Assets l8 Non-Protit liarning Assets t9 Retum on Investment in Securities 3.98% 3.54% 20 Return (after tax) on average Assets (ROA) 0.17% 0.54% 2l Return (after tax) on equity (ROE) 9.2t% 10.059,0 22 Income from Investment in Securities 23 8.93 3,4 r 3.560 27,901,797,226 7,653.208,726 8, r2 26.11 I ,512,361) 7,8 il .41 3,869 t4.27% 13.780/0 53,594.806.020 ) r 70.953 50,685,965,804 89.470/o 91.s4% 6.63Yo 1.69% 7,533.303.838 7 r sgi 557 IR6 r 8.3 s0.990.000 6,3 98,009,498 6.5t% 6.56010 293,586,295,029 5t,469,936,597 259" r3 5,059,629 48.1 70,26 t.81 5 760,574,012 462,796,394 Earning Per Share (EPS) (Prior year restated) 1.70 1.7'.l 24 Consolidated Earning Per Share (CEPS) (Prior year restated) 1.71 1.79 25 Net Income Per Share t.70 l.'77 26 Price Earning Ratio (Times) 8. l0 7.90