Post on 21-Jul-2018
Auditor’s Report
TO THE SHAREHOLDERS OF NCC BANK LIMITED
Report on the Financial Statements
We have audited the accompanying consolidated financial statements of NCC Bank Limited and its
subsidiaries (the “Group") as well as the separate financial statements of NCC Bank Limited (the
“Bank”), which comprise the consolidated and separate balance sheets as at 31 December 2014,
and the consolidated and separate profit and loss accounts, consolidated and separate statements
of changes in equity and consolidated and separate cash flow statements for the year then ended
including a summary of significant accounting policies and other explanatory information.
Management’s Responsibility for the Financial Statements and Internal Controls
Management is responsible for the preparation of consolidated financial statements of the Group
and also separate financial statements of the Bank that give a true and fair view in accordance
with Bangladesh Financial Reporting Standards as explained in note# 2.1 and for such internal
control as management determines is necessary to enable the preparation of consolidated
financial statements of the Group and also separate financial statements of the Bank that are free
from material misstatement, whether due to fraud or error. The Bank Company Act, 1991 and the
Bangladesh Bank Regulations require the Management to ensure effective internal audit, internal
control and risk management functions of the Bank. The Management is also required to make a
self-assessment on the effectiveness of anti-fraud internal controls and report to Bangladesh Bank
on instances of fraud and forgeries.
Auditor's Responsibility
Our responsibility is to express an opinion on these consolidated financial statements of the Group
and the separate financial statements of the Bank based on our audit. We conducted our audit in
accordance with Bangladesh Standards on Auditing. Those standards require that we comply with
ethical requirements and plan and perform the audit to obtain reasonable assurance about
whether the consolidated financial statements of the Group and separate financial statements of
the Bank are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the consolidated financial statements of the Group and separate financial statements
of the Bank. The procedures selected depend on the auditor’s judgment, including the assessment
of the risks of material misstatement of the consolidated financial statements of the Group and
separate financial statements of the Bank, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the entity’s preparation of
consolidated financial statements of the Group and separate financial statements of the Bank that
2
give a true and fair view in order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of accounting policies used
and the reasonableness of accounting estimates made by management, as well as evaluating the
overall presentation of the consolidated financial statements of the Group and also separate
financial statements of the Bank.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinion.
Opinion
In our opinion, the consolidated financial statements of the Group and also separate financial
statements of the Bank give a true and fair view of the consolidated financial position of the Group
and the separate financial position of the Bank as at 31 December 2014, and of its consolidated
and separate financial performance and its consolidated and separate cash flows for the year then
ended in accordance with Bangladesh Financial Reporting Standards as explained in note# 2.1.
Report on Other Legal and Regulatory Requirements
In accordance with the Companies Act 1994, Securities and Exchange Rules 1987, the Bank
Company Act, 1991 and the rules and regulations issued by Bangladesh Bank, we also report the
following:
(a) we have obtained all the information and explanation which to the best of our knowledge
and belief were necessary for the purpose of our audit and made due verification thereof;
(b) to the extent noted during the course of our audit work performed on the basis stated
under the Auditor’s Responsibility section in forming the above opinion on the consolidated
financial statements of the Group and the separate financial statements of the Bank 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 Management’s
Responsibility for the Financial Statements and Internal Controls:
i) internal audit, internal control and risk management arrangements of the Group
and the Bank, as disclosed in note# 2.20 of the financial statements, appeared to
be materially adequate;
ii) nothing has come to our attention regarding material instances of forgery or
irregularity or administrative error and exception or anything detrimental
committed by employees of the Bank and its related entities other than matters
disclosed in note # 2.32 of these financial statements;
(c) financial statements of subsidiary, NCCB Securities and Financial Services Limited, of
the Bank have been audited by Shafiq Mizan Rahman and Augustine, Chartered
Accountants, financial statements of subsidiary, NCCB Capital Limited (NCCBCL), of the
Bank have been audited by Hoda Vasi Chowdhury & Co., Chartered Accountants, and the
financial statements of another subsidiary, NCCB Exchange (UK) Limited, of the Bank
3
have been verified by Shahidullah & Co., Chartered Accountants and have been properly
reflected in the consolidated financial statements;
(d) in our opinion, proper books of account as required by law have been kept by the Group
and the Bank so far as it appeared from our examination of those books;
(e) the consolidated balance sheet and consolidated profit and loss account of the Group and
the separate balance sheet and separate profit and loss account of the Bank dealt with by
the report are in agreement with the books of account;
(f) the expenditure incurred was for the purposes of the Bank’s business;
(g) the consolidated financial statements of the Group and the separate financial statements
of the Bank have been drawn up in conformity with prevailing rules, regulations and
accounting standards as well as with related guidance issued by Bangladesh Bank;
(h) adequate provisions have been made for advances which are, in our opinion, doubtful of
recovery;
(i) the records and statements submitted by the branches have been properly maintained and
consolidated in the financial statements;
(j) the information and explanation required by us have been received and found satisfactory;
and
(k) we have reviewed over 80% of the risk weighted assets of the Bank and we have spent
around 4130 person hours for the audit of the books and accounts of the Bank.
Sd/-
ACNABIN
Dhaka, 06 May 2015
Chartered Accountants
Notes
31.12.2014 31.12.2013 01.01.2013
Cash 5(a) 8,612,161,539 7,875,262,639 7,732,385,281
In hand (including foreign currencies) 1,173,484,713 1,256,477,870 1,139,317,553
Balance with Bangladesh Bank and its agent bank (s) 7,438,676,826 6,618,784,769 6,593,067,728
(including foreign currencies)
Balance with other banks and financial institutions 6(a) 2,414,393,658 670,604,823 1,320,030,633
In Bangladesh 471,533,599 341,687,470 1,088,828,360
Outside Bangladesh 1,942,860,059 328,917,353 231,202,273
Money at call and short notice 7 - -
Investments 8 (a) 26,597,505,060 19,933,799,397 30,875,334,248
Government 25,241,572,158 18,352,194,148 29,282,775,027
Others 1,355,932,902 1,581,605,249 1,592,559,221
Loans and advances 9(a) 93,766,512,875 90,790,437,249 82,413,113,415
Loans, cash credits, overdrafts, etc. 91,585,216,994 88,986,893,032 80,286,453,329
Bills purchased & discounted 2,181,295,881 1,803,544,217 2,126,660,086
Fixed assets including premises,
furnitures and fixtures 10(a) 2,591,715,651 1,759,065,816 1,771,827,510
Other assets 11(a) 2,014,263,699 3,597,079,822 1,955,537,059
Non-banking assets - - -
TOTAL ASSETS 135,996,552,482 124,626,249,746 126,068,228,146
LIABILITIES AND CAPITAL
Liabilities
Borrowings from other banks,
financial institutions and agents 12 (a) 5,025,525,649 2,763,533,530 9,444,527,760
Deposits and other accounts 13 (a) 105,458,206,463 97,986,947,700 96,687,165,058
Current deposits and other accounts 9,303,413,794 7,844,244,383 8,629,374,837
Bills payable 13.1 2,038,624,517 1,319,767,208 1,612,347,002
Savings bank deposits 12,989,595,636 11,167,226,439 9,832,750,729
Fixed deposits 45,696,085,137 47,844,992,750 53,488,720,598
Term deposits 35,430,487,379 29,810,716,920 23,123,971,892
Other liabilities 14(a) 11,155,937,549 10,593,854,568 7,792,199,041
TOTAL LIABILITIES 121,639,669,661 111,344,335,798 113,923,891,859
Shareholders' equity
Paid up capital 15.2 8,029,254,580 7,646,909,130 6,951,735,580
Statutory reserve 16 4,783,513,367 4,283,417,675 3,818,042,032
General reserve 17 10,162,348 10,162,348 10,162,348
Non-controlling (Minority) interest 15.8 215 215 212
Other reserve-assets revaluation reserve 18 484,862,319 450,761,512 469,729,455
Foreign currency translation gain/(Loss) 19.3 2,395,709 910,171 -
Surplus in profit and loss account 19(a) 1,046,694,283 889,752,897 894,666,660
TOTAL SHAREHOLDERS' EQUITY 14,356,882,821 13,281,913,948 12,144,336,287
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 135,996,552,482 124,626,249,746 126,068,228,146
National Credit and Commerce Bank Limited and its Subsidiaries
Amount in Taka
As at 31 December 2014
Consolidated Balance Sheet
PROPERTY AND ASSETS
Particulars
4
31.12.2014 31.12.2013 01.01.2013
CONTRA ENTRIES
Off balance sheet items:
Contingent liabilities
Acceptances and endorsements 20.1 11,771,729,896 12,350,769,134 13,284,505,289
Letters of guarantee 20.2 10,779,508,225 6,148,244,590 5,670,935,938
Letters of credit issued 20.3 10,082,145,954 7,725,862,083 5,000,442,176
Bills for collection 20.4 295,242,380 3,894,651 796,376
Other contingent liabilities :
Claims against the bank not acknowledged as debt - - -
Capital commitments - - -
Export development fund (EDF) 169,424,989 7,028,000 175,796,000
TOTAL OFF BALANCE SHEETS ITEMS 33,098,051,444 26,235,798,458 24,132,475,779
Chairman Director Director Managing Director & CEO
Sd/-
Dhaka, 06 May 2015
Amount in Taka
See annexed auditor's report to the Shareholders of the date.
These financial statements should be read in conjunction with the annexed notes from 1 to 43.
Sd/- Sd/- Sd/- Sd/-
ACNABIN
Chartered Accountants
5
National Credit and Commerce Bank Limited and its Subsidiaries
Notes 2014 2013
Taka Taka
Interest income 22(a) 12,002,336,832 12,393,308,389
Less: Interest paid on deposits and borrowings 23(a) 9,339,227,961 10,143,850,699
Net interest income 2,663,108,871 2,249,457,690
Income from investments 24(a) 2,673,127,057 2,782,298,831
Commission, exchange and brokerage 25(a) 942,488,648 1,018,065,287
Other operating income 26(a) 347,721,249 324,295,423
Total operating income 6,626,445,825 6,374,117,231Salary and allowances 27(a) 1,769,143,439 1,449,457,548Rent, taxes, insurance, electricity etc. 28(a) 298,963,720 263,188,635Legal expenses 29 (a) 19,889,646 14,798,420Postage, stamp, telecommunication etc. 30(a) 28,791,504 27,669,825Stationery, printing, advertisement etc. 31(a) 71,317,985 78,124,450Managing Director's salary and allowances 32 9,204,354 8,880,000Director's fees 33(a) 1,960,500 1,495,000Audit fees 34(a) 185,000 170,000 Depreciation and repair of bank's assets 35(a) 388,255,538 344,757,810Other expenses 36(a) 280,699,646 262,926,940
Total operating expense 2,868,411,332 2,451,468,628
Profit before provisions 3,758,034,493 3,922,648,603
Provision for loans and advances 1,102,979,734 1,295,587,905
Specific provision 14.5.1(a) 1,049,908,407 1,248,163,191
General provision 14.5.1(b) 53,071,327 47,424,714
Provision for off-balance sheet exposures 14.6 70,600,398 18,442,091
Provision for off-shore banking unit 14.7 3,500,493 206,965
Provision for investment fluctuation in shares 8.3 54,242,778 176,370,449
Provision for other assets 14.2 - 14,431,768
Total provisions 1,231,323,403 1,505,039,178
2,526,711,090 2,417,609,425
Contribution to NCC Bank Foundation 14.9 25,000,000 20,000,000
Profit before tax 2,501,711,090 2,397,609,425
Provision for tax 14.3 1,007,028,892 1,257,110,900
Current tax 877,235,304 1,273,061,118
Deferred tax 14.4.1 129,793,588 (15,950,218) Profit after tax for the year 1,494,682,198 1,140,498,525
Attributable to:
Shareholders' of the bank 1,494,682,198 1,140,498,520
Non-controlling (Minority) interest - 5
Balance of profit brought forward from last year 19.2 48,592,899 208,145,541
Total profit available for distribution 1,543,275,097 1,348,644,062
Appropriations:
Statutory reserve 500,095,692 465,375,643
General reserve -
500,095,692 465,375,643 Retained earnings carried forward 19(a) 1,043,179,405 883,268,419
Earnings per share (EPS) 42(a) 1.86 1.42
Sd/-
Dhaka, 06 May 2015
Consolidated Profit and Loss Account For the year ended on 31 December 2014
These financial statements should be read in conjunction with the annexed notes from 1 to 43.
Profit after provision for loans & advances & other provisions
Chairman Director Director Managing Director & CEO
See annexed auditor's report to the Shareholders of the date.
Chartered Accountants
ACNABIN
Sd/- Sd/- Sd/- Sd/-
6
Notes 2014 2013
Taka TakaA) Cash flows from operating activities
Interest received in cash 13,838,674,272 14,119,426,119
Interest paid by cash (8,247,206,366) (10,449,396,345)
Dividend received 56,999,846 26,715,673
Fees & commission received in cash 743,147,974 734,491,693
Recoveries of loans previously written off 11,873,927 12,368,154
Cash paid to employees (1,668,077,244) (1,361,653,601)
Cash paid to suppliers (240,668,501) (327,673,255)
Income taxes paid (764,227,838) (1,379,690,275)
Received from other operating activities 37(a) 1,092,114,463 1,574,851,973
Paid for other operating activities 38(a) (697,467,300) (508,744,612)
Operating profit before changes in operating assets and liabilities 4,125,163,233 2,440,695,524
Increase/(Decrease) in operating assets & liabilities
Purchase-sale of trading securities (6,768,186,210) 10,854,926,679
Loans and advances to other banks - -
Loans and advances to customers ( Other than banks) (2,976,075,626) (8,377,323,834)
Other assets 39(a) 682,158,007 (266,213,310)
Deposits from other banks/borrowings 280,010,213 (3,043,871,876)
Deposits from customers ( Other than banks) 7,358,957,121 1,100,084,285
Other liabilities account of customers (1,664,988,737) (118,389,700)
Other liabilities 40 (a) 721,332,298 505,821,414
Net Cash received from operating activities 1,758,370,299 3,095,729,182
B) Cash flows from investing activities
Proceeds from sale of securities 262,380,301 384,963,302
Payment for purchase of securities (173,299,657) (412,586,872)
(989,898,831) (149,858,951)
Sales proceeds of fixed assets 5,893,287 11,612,322
Net cash used in investing activities (894,924,900) (165,870,199)
C) Cash flows from financing activities
Borrowings from other bank's , financial institutions and agents 2,093,981,906 (3,437,122,354)
Interim dividend paid to minority shareholders - (2)
Dividend paid in cash (458,814,548) -
Net cash received from financing activities 1,635,167,358 (3,437,122,356)
D) Net (decrease)/ increase in cash (A+B+C) 2,498,612,757 (507,263,373)
Effects of exchange rate changes on cash and cash-equivalents 922,562 1,147,434
E) Opening cash and cash-equivalents 8,531,606,279 9,037,722,218
F) Closing cash and cash-equivalents (D+E) 41(a) 11,031,141,598 8,531,606,279
National Credit and Commerce Bank Limited and its Subsidiaries
Sd/- Sd/- Sd/- Sd/-
Chairman Director Director Managing Director & CEO
These financial statements should be read in conjunction with the annexed notes from 1 to 43.
Purchase of property, plant and equipment
Consolidated Cash Flow statement For the year ended on 31 December 2014
7
Paid up
capital
Statutory
reserve
General
reserve
Other reserve-
asset
revaluation
reserve
Non-
controlling
(Minority)
interest
F.C.
Translation
gain/(Loss)
Retained
earnings
Total
Taka Taka Taka Taka Taka Taka Taka Taka
Balance at 1st January 2014 7,646,909,130 4,283,417,675 10,162,348 450,761,512 215 910,171 889,752,897 13,281,913,948
Depreciation on revaluation of properties - - (3,514,878) 3,514,878 -
Revaluation of Govt. securities (treasury
bills/bonds) HFT made during the year- - - - - -
Surplus/(deficit) on account of revaluation of
Govt. -
securities (treasury bills/bonds) HTM & HFT
transferred to income A/C- - 37,615,685 - - 37,615,685
Currency translation gain/(loss) - - - - 1,485,538 1,485,538
Net gains and losses not recognized in the
income Statement- - - - - -
Minority interest - - - - - -
Bonus share for the year 2013 382,345,450 (382,345,450) -
Net profit for the year - - - - 1,494,682,198 1,494,682,198
Transfer to statutory reserve - 500,095,692 - - - (500,095,692) -
Cash Dividend for the year 2013 (458,814,548) (458,814,548)
Balance at 31 December 2014 8,029,254,580 4,783,513,367 10,162,348 484,862,319 215 2,395,709 1,046,694,283 14,356,882,821
Balance at 31 December 2013 7,646,909,130 4,283,417,675 10,162,348 450,761,512 215 910,171 889,752,897 13,281,913,948
Sd/- Sd/- Sd/- Sd/-
National Credit and Commerce Bank Limited and its Subsidiaries
Chairman Director Director Managing Director & CEO
Particulars
Consolidated Statement of Changes in Equity
For the year ended on 31 December 2014
8
Notes31.12.2014 31.12.2013 01.01.2013
PROPERTY AND ASSETS
Cash 5 8,612,160,908 7,875,262,621 7,732,385,281
In hand (including foreign currencies) 1,173,484,082 1,256,477,852 1,139,317,553
Balance with Bangladesh Bank and its agent bank (s) 7,438,676,826 6,618,784,769 6,593,067,728
(including foreign currencies)
Balance with other banks and financial institutions 6 2,407,581,410 656,757,606 1,316,317,832
In Bangladesh 468,186,926 328,019,533 1,087,904,404
Outside Bangladesh 1,939,394,484 328,738,073 228,413,428
Money at call and short notice 7 - -
Investments 8 26,568,661,762 19,908,322,002 30,851,738,163
Government 25,241,572,158 18,352,194,148 29,282,775,027
Others 1,327,089,604 1,556,127,854 1,568,963,136
Loans and advances 9 90,920,772,028 88,167,205,831 79,948,220,174
Loans, cash credits, overdrafts, etc. 88,739,476,147 86,363,661,614 77,821,560,088
Bills purchased & discounted 2,181,295,881 1,803,544,217 2,126,660,086
10 2,573,252,105 1,736,637,982 1,743,585,434
Other assets 11 4,077,095,326 5,698,510,026 4,249,255,937
Non-banking assets - - -
TOTAL ASSETS 135,159,523,539 124,042,696,069 125,841,502,821
LIABILITIES AND CAPITAL
Liabilities
Borrowings from other banks, financial
institutions and agents 12 4,975,525,649 2,763,533,530 9,444,527,760
Deposits and other accounts 13 105,703,614,110 98,229,442,528 96,918,222,155
Current deposits and other accounts 9,548,821,441 8,086,739,211 8,603,924,747
Bills payable 13.1 2,038,624,517 1,319,767,208 1,612,347,002
Savings bank deposits 12,989,595,636 11,167,226,439 9,832,750,729
Fixed deposits 45,696,085,137 47,844,992,750 53,745,227,785
Term deposits 35,430,487,379 29,810,716,920 23,123,971,892
Other liabilities 14 10,130,694,248 9,779,884,197 7,342,935,755
TOTAL LIABILITIES 120,809,834,007 110,772,860,255 113,705,685,670
Shareholders' equity
Paid up capital 15.2 8,029,254,580 7,646,909,130 6,951,735,580
Statutory reserve 16 4,783,513,367 4,283,417,675 3,818,042,032
General reserve 17 10,162,348 10,162,348 10,162,348
Other reserve-assets revaluation reserve 18 484,862,319 450,761,512 469,729,455
Foreign currency translation gain/(Loss) 18.3 (276,637) 2,518
Surplus in profit and loss account 19 1,042,173,555 878,582,631 886,147,736
TOTAL SHAREHOLDERS' EQUITY 14,349,689,532 13,269,835,814 12,135,817,151
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 135,159,523,539 124,042,696,069 125,841,502,821
Amount in Taka
National Credit and Commerce Bank LimitedBalance Sheet
As at 31 December 2014
furnitures and fixtures
Particulars
Fixed assets including premises,
9
31.12.2014 31.12.2013 01.01.2013
CONTRA ENTRIES
Off balance sheet items:Contingent liabilities
Acceptances and endorsements 20.1 11,771,729,896 12,350,769,134 13,284,505,289 Letters of guarantee 20.2 10,779,508,225 6,148,244,590 5,670,935,938 Letters of credit issued 20.3 10,082,145,954 7,725,862,083 5,000,442,176 Bills for collection 20.4 295,242,380 3,894,651 796,376 Other contingent liabilities :Claims against the bank not acknowledged as debt - - -
Capital commitments - - -
Export development fund (EDF) 169,424,989 7,028,000 175,796,000
TOTAL OFF BALANCE SHEETS ITEMS 33,098,051,444 26,235,798,458 24,132,475,779
Sd/- Sd/- Sd/- Sd/-
Sd/-
Dhaka, 06 May 2015
Chairman Director Director Managing Director & CEO
Amount in Taka
ACNABIN
Chartered Accountants
See annexed auditor's report to the Shareholders of the date.
These financial statements should be read in conjunction with the annexed notes from 1 to 43.
Particulars
10
Notes 2014 2013
Taka Taka
Interest income 22 12,019,784,168 12,194,098,472Less: Interest paid on deposits and borrowings 23 9,339,227,961 10,154,704,915Net interest income 2,680,556,207 2,039,393,557Income from investments 24 2,672,992,807 2,801,832,887Commission, exchange and brokerage 25 834,641,525 912,440,311Other operating income 26 344,308,980 319,522,236Total operating income 6,532,499,519 6,073,188,991Salary and allowances 27 1,738,691,455 1,424,775,370Rent, taxes, insurance, electricity etc. 28 282,526,645 244,398,065Legal expenses 29 19,889,646 14,798,420Postage, stamp, telecommunication etc. 30 28,109,335 27,104,240Stationery, printing, advertisement etc. 31 70,819,994 77,635,840Managing Director's salary and allowances 32 9,204,354 8,880,000Director's' fees 33 1,770,000 1,495,000Audit fee 34 150,000 150,000 Depreciation and repair of bank's assets 35 379,621,342 334,539,782Other expenses 36 254,914,885 240,598,299Total operating expense 2,785,697,656 2,374,375,016Profit before provisions 3,746,801,863 3,698,813,975Provision for loans and advances 1,092,979,734 1,141,940,806Specific provision 14.5(a) 1,039,908,407 1,094,516,092General provision 14.5(b) 53,071,327 47,424,714Provision for off-balance sheet exposures 14.6 70,600,398 18,442,091 Provision for off-shore banking unit 14.7 3,500,493 206,965 Provision for investment fluctuation in shares 8.3 54,242,778 176,914,132 Provision for other assets 14.2 - 14,431,768 Total provisions 1,221,323,403 1,351,935,762Profit after provision for loans & advances & other provisions 2,525,478,460 2,346,878,213Contribution to NCC Bank Foundation 14.9 25,000,000 20,000,000Profit before tax 2,500,478,460 2,326,878,213Provision for tax 14.4 999,149,242 1,189,031,038
Current tax 869,355,654 1,204,981,256
Deferred tax 14.4.1 129,793,588 (15,950,218) Profit after tax for the year 1,501,329,218 1,137,847,175Balance of profit brought forward from last year 19.1 37,425,151 199,626,621Total profit available for distribution 1,538,754,369 1,337,473,796Appropriations:
Statutory reserve 500,095,692 465,375,643 General reserve - -
500,095,692 465,375,643 Retained earnings carried forward 19 1,038,658,677 872,098,153
Earnings per share (EPS) 42 1.87 1.42
Chairman
Dhaka, 06 May 2015
National Credit and Commerce Bank LimitedProfit and Loss Account
For the year ended 31 December 2014
These financial statements should be read in conjunction with the annexed notes from 1 to 43.
Sd/- Sd/- Sd/- Sd/-
Managing Director & CEO
ACNABIN
Chartered Accountants
See annexed auditor's report to the Shareholders of the date.
DirectorDirector
11
2014 2013Notes Taka Taka
A) Cash flows from operating activities
Interest received in cash 13,856,121,608 13,920,237,656
Interest paid by cash (8,247,206,366) (10,460,272,015)
Dividend received 56,865,596 206,640,973
Fees & commission received in cash 635,300,980 627,760,212
Recoveries of loans previously written off 11,873,927 12,368,154
Cash paid to employees (1,637,625,260) (1,335,979,655)
Cash paid to suppliers (240,668,501) (327,673,255)
Income taxes paid (723,735,054) (1,320,176,856)
Received from other operating activities 37 1,088,702,191 1,571,233,700
Paid for other operating activities 38 (649,409,327) (461,483,100)
Operating profit before changes in operating assets and liabilities 4,150,219,794 2,432,655,814
Increase/(decrease) in operating assets & liabilities
Purchase-sale of trading securities (6,768,186,210) 10,854,926,679
Loans and advances to other banks - -
Loans and advances to customers ( Other than Banks) (2,753,566,197) (8,218,985,657)
Other assets 39 678,522,199 (293,438,054)
Deposits/ borrowings from other Banks 230,010,213 (3,043,871,876)
Deposits from customers ( Other than Banks) 7,362,171,583 1,111,220,373
Other liabilities account of customers (1,647,261,072) (124,005,338)
Other liabilities 40 510,172,099 367,972,623
Net cash received from operating activities 1,762,082,409 3,086,474,564
B) Cash flows from investing activities
Proceeds from sale of securities 262,380,301 384,562,060
Payment for purchase of Securities (169,933,754) (410,705,562)
(988,389,850) (149,337,917)
Sales proceeds of fixed assets 5,841,490 9,574,675
Net cash used in investing activities (890,101,813) (165,906,744)
C) Cash flows from financing activities
Borrowings from other bank's , financial institutions and agents 2,093,981,906 (3,437,122,354)
Dividend paid in cash (458,814,548) -
Net cash received from financing activities 1,635,167,358 (3,437,122,354)
D) Net increase/(decrease) in cash (A+B+C) 2,507,147,954 (516,554,534)
Effects of exchange rate changes on cash and cash-equivalents (276,637) 2,518
E) Opening cash and cash-equivalents 8,517,457,401 9,034,009,417
F) Closing cash and cash-equivalents (D+E) 41 11,024,328,718 8,517,457,401
Chairman Director
These financial statements should be read in conjunction with the annexed notes from 1 to 43.
Director Managing Director & CEO
Sd/- Sd/- Sd/- Sd/-
Purchase of property, plant and equipment
Cash Flow Statement For the year ended 31 December 2014
National Credit and Commerce Bank Limited
12
Paid up
capital
Statutory
reserve
General
reserve
Other reserve-
assets revaluation
reserve
F.C.
Translation
gain/(Loss)
Retained
earningsTotal
Taka Taka Taka Taka Taka Taka Taka
Balance at 1st January 2014 7,646,909,130 4,283,417,675 10,162,348 450,761,512 - 878,585,149 13,269,835,814
Depreciation on revaluation of properties - - - (3,514,878) 3,514,878 -
Revaluation of Govt. Securities (treasury
bills/bonds) HFT made during the year- - - -
-
Surplus/(deficit) on account of revaluation of
Govt. securities (treasury bills/bonds) HTM &
HFT transferred to income A/C
- - - 37,615,685 37,615,685
Currency translation differences - - - (276,637) (276,637)
Net gains and losses not recognized in the
income statement- - - -
-
Bonus share for the year 2013 382,345,450 - - - (382,345,450) -
Net profit for the year - - - 1,501,329,218 1,501,329,218
Appropriations during the year
Transfer to statutory reserve - 500,095,692 - - (500,095,692) -
Cash Dividend for the year (458,814,548) (458,814,548)
Balance at 31 December 2014 8,029,254,580 4,783,513,367 10,162,348 484,862,319 (276,637) 1,042,173,555 14,349,689,532
Balance at 31 December 2013 7,646,909,130 4,283,417,675 10,162,348 450,761,512 - 878,585,149 13,269,835,814
National Credit and Commerce Bank Limited Statement of Changes in Equity
For the year ended 31 December 2014
Particulars
Chairman Director Director Managing Director & CEO
Sd/- Sd/- Sd/- Sd/-
13
Cash in hand 1,173,484,082 - - - - 1,173,484,082
Balances with other banks
and financial institutions2,782,663,019 - - - 7,063,595,217 9,846,258,236
Money at call & short notice - - - - - -
Investments 2,008,202,315 826,915,409 2,276,429,665 10,267,604,816 11,189,509,557 26,568,661,762
Loans & advances 15,510,652,045 19,536,439,633 26,781,203,143 17,816,400,961 11,276,076,246 90,920,772,028
Fixed assets including land, building,
furniture & fixtures- - 143,325,505 416,904,179 2,013,022,422 2,573,252,105
Other assets 168,800,631 360,969,156 1,074,556,052 170,758,555 2,302,010,932 4,077,095,326
Non-banking assets - - - - - -
Total assets 21,643,802,092 20,724,324,198 30,275,514,365 28,671,668,511 33,844,214,374 135,159,523,539
Borrowing from other banks, financial
institutions & agents1,766,986,059 87,515,470 221,926,457 1,010,309,020 1,888,788,643 4,975,525,649
Deposits 16,028,608,399 23,699,602,570 23,391,340,830 24,237,651,715 16,307,786,080 103,664,989,594
Bills payable 2,038,624,517 - - - - 2,038,624,517
Provision & other liabilities 839,709,930 409,189,299 3,790,128,822 3,496,043,552 1,595,622,645 10,130,694,248
Total liabilities 20,673,928,905 24,196,307,339 27,403,396,109 28,744,004,287 19,792,197,368 120,809,834,008
Net liquidity gap 969,873,187 (3,471,983,141) 2,872,118,256 (72,335,776) 14,052,017,006 14,349,689,532
Net result of the liquidity statement represents the 'shareholders' equity' of the bank.
1-3 months term
National Credit and Commerce Bank Limited Liquidity Statement
( Asset and Liability Maturity Analysis)
As at 31 December 2014
Sd/- Sd/- Sd/- Sd/-
Chairman Director Director Managing Director & CEO
Above 5-years
termTotalParticulars
Assets:
Liabilities:
3-12 months
term1-5 years term
Not more than
1 month term
14
15
National Credit and Commerce Bank Limited & Its Subsidiaries Notes to the Financial Statements As at and for the year ended on 31 December 2014
1.1 Status of the Bank
The National Credit and Commerce Bank Limited (NCCBL) was formed as a public limited banking
company incorporated in Bangladesh with primary objective to carry on all kinds of banking business in and outside Bangladesh.
The registered office of the Bank is located at NCC Bank Bhaban, 13/1-2 Toyenbee Circular Road, Motijheel Commercial Area, Dhaka-1000 (Previously the registered office situated at 7-8 Motijheel C/A,
Dhaka-1000). It commenced its banking business with 16 branches from May 17, 1993 under the license issued by Bangladesh Bank. Presently the Bank has 103 branches all over Bangladesh and 02 (Two)
booths at Uttara Model Town, Uttara, Dhaka and Maniknagar, North Golapbagh, Dhaka. The bank has no
overseas branch as at 31 December 2014. It carries out all banking activities through it branches in Bangladesh. The Bank went for initial public offering in 1999 and its share is listed with Dhaka and
Chittagong Stock Exchange Limited as a publicly traded company.
1.1.1 Principal activities
The principal activities of the Bank are to provide all kinds of commercial banking services to its
customers through its branches.
1.1.2 Offshore Banking Units
Offshore Banking Unit (OBU) is a separate business unit of NCC Bank Limited governed under the rules
and guidelines of Bangladesh Bank. The Bank obtained permission for operation of offshore banking units located at Foreign Exchange Branch & Agrabad Branch vide Bangladesh Bank letter no. BRPD (P-
3)744(113)/2010-1648 dated 02 May 2010. The Bank commenced the operation of its offshore banking units from 26 August 2013 at Foreign Exchange branch, Dhaka and operation of OBU located at Agrabad
branch, Chittagong will be started within very soon. Separate financial statements of offshore banking
units are shown in Annexure-N.
1.1.3 Information regarding subsidiary:
The Bank has 03 (Three) Subsidiary companies as on December 31, 2014.
1.1.3.1 NCCB Securities and Financial Services Limited
NCCB Securities and Financial Services Limited is a Subsidiary Company of NCC Bank Limited
incorporated as a Private Limited Company on April 04, 2010 with the Registrar of Joint Stock Companies and Firms vide certificate of incorporation no.C-83683/10 dated April 04, 2010 under the Companies Act-
1994. NCCBSFSL commenced its operation from March 07, 2011. The Main objective of the company is to
act as a full fledged Stock Broker & Stock Dealer to execute buy and sell order and to maintain own portfolio as well as customers‟ portfolio under the discretion of customers. The company also performs
the other activities relates to Capital Market as and when regulators permit the company to carry out activities as per their guidelines. Financial statements of 2014 of the company are shown in Annexure-O
1.1.3.2 NCCB Capital Limited (NCCBCL)
NCCB Capital Limited (NCCBCL) is a Subsidiary Company of NCC Bank Limited incorporated as a Private Limited Company on April 01, 2010 with the Registrar of Joint Stock Companies and Firms vide certificate
of incorporation no.C-83649/10 dated April 01, 2010 under the Companies, Act-1994. The Main objective
16
of the company is to provide fledged merchant banking services like issue management, underwriting,
advisory services & as and when regulators permits the company to carry out activities as per their guidelines. NCCBCL was not in operation till December 31, 2014. Financial statements of the company
are shown in Annexure-P
1.1.3.3 NCCB Exchange (UK) Limited
NCCB Exchange (UK) Limited is a fully owned Subsidiary Company, incorporated as a Private Limited
company with the Registrar of Companies for England and Wales under registration no. 7669773 dated June 14, 2011. NCC Bank Limited got permission from Bangladesh Bank vide letter no.
BRPD/(M)204/28/2011-123 dated June 13, 2011 for opening a fully owned subsidiary company with two branches at London and Birmingham in UK. NCCB Exchange (UK) Limited obtained Money Laundering
registration on July 28, 2011 issued by HM Revenue & Customs. The Company got registration from
Financial Services Authority (FSA) vide reference no PSD/557817 dated October 26, 2011 to carry on payment services activities under the Payment Services Regulations 2009 (PRSs). Financial Statements of
the company are shown in Annexure-Q
2 Significant accounting policies and basis of preparation of financial statements
2.1 Basis of accounting
The financial statements namely, Balance Sheet, Profit and Loss Accounts, Cash Flow Statement,
Statement of Changes in Equity, Liquidity Statement and relevant notes and disclosures thereto, of the Bank are prepared on a going concern basis under the historical cost convention, and in accordance with
First Schedule of the Banking Companies Act 1991, as amended, BRPD circular no. 14 of 25 June 2003,
other Bangladesh Bank circulars, International Accounting Standards, and International Financial Reporting Standards adopted in Bangladesh as Bangladesh Accounting Standards (BAS), and Bangladesh
Financial Reporting Standards (BFRS) as adopted by the Institute of Chartered Accountants of Bangladesh, the Companies Act 1994, the Bangladesh Securities and Exchange Rules 1987. Wherever
appropriate, such principles are explained in succeeding notes.
Statement of compliance
The financial statements of the Bank are prepared in accordance with Bangladesh Financial Reporting
Standards (BFRS) and the requirements of the Bank Companies Act 1991, the rules and regulations
issued by Bangladesh Bank, the Companies Act 1994, Securities and Exchange Rules 1987. In case any requirement of the Bank Companies Act 1991, and provisions and circulars issued by Bangladesh Bank
differ with those of BFRS, the requirements of the Bank Companies Act 1991, and provisions and circulars issued by Bangladesh Bank shall prevail. Material departures from the requirements of BFRS are as
follows:
i) Investment in shares and securities
BFRS: As per requirements of BAS 39 investment in shares and securities generally falls either under “at
fair value through profit and loss account” or under “available for sale” where any change in the fair value (as measured in accordance with BFRS 13) at the year-end is taken to profit and loss account or
revaluation reserve respectively.
Bangladesh Bank: As per BRPD circular no. 14 dated 25 June 2003 investments in quoted shares and
unquoted shares are revalued at the year end at market price and as per book value of last audited balance sheet respectively. Provision should be made for any loss arising from diminution in value of
investment; otherwise investments are recognized at cost.
17
ii) Revaluation gains/losses on Government securities
BFRS: As per requirement of BAS 39 where securities will fall under the category of Held for Trading
(HFT), any change in the fair value of held for trading assets is recognized through profit and loss account. Securities designated as Held to Maturity (HTM) are measured at amortized cost method and
interest income is recognized through the profit and loss account.
Bangladesh Bank: HFT securities are revalued on the basis of mark to market and at year end any gains
on revaluation of securities which have not matured as at the balance sheet date are recognized in other reserves as a part of equity and any losses on revaluation of securities which have not matured as at the
balance sheet date are charged in the profit and loss account. Interest on HFT securities including amortization of discount are recognized in the profit and loss account. HTM securities which have not
matured as at the balance sheet date are amortized at the year end and gains or losses on amortization
are recognized in other reserve as a part of equity.
iii) Provision on loans and advances/investments
BFRS: As per BAS 39 an entity should start the impairment assessment by considering whether objective
evidence of impairment exists for financial assets that are individually significant. For financial assets that are not individually significant, the assessment can be performed on an individual or collective (portfolio)
basis.
Bangladesh Bank: As per BRPD circular No.14 (23 September 2012), BRPD circular No. 19 (27 December 2012), BRPD circular No. 05 (29 May 2013) and BRPD circular No.16 (18 November 2014) a general
provision at 0.25% to 5% under different categories of unclassified loans (good/standard loans) has to
be maintained regardless of objective evidence of impairment. Also provision for sub-standard loans, doubtful loans and bad losses has to be provided at 5% to 20%, 5% to 50% and 100% respectively for
loans and advances depending on the duration of overdue. Again as per BRPD circular no. 10 dated 18 September 2007 and BRPD circular no. 14 dated 23 September 2012, a general provision at 1% is
required to be provided for all off-balance sheet exposures. Such provision policies are not specifically in
line with those prescribed by BAS 39.
iv) Recognition of interest in suspense
BFRS: Loans and advances to customers are generally classified as 'loans and receivables' as per BAS 39
and interest income is recognized through effective interest rate method over the term of the loan. Once a loan is impaired, interest income is recognized in profit and loss account on the same basis based on
revised carrying amount.
Bangladesh Bank: As per BRPD circular no. 14 dated 23 September 2012, once a loan is classified, interest on such loans are not allowed to be recognized as income, rather the corresponding amount
needs to be credited to an interest in suspense account, which is presented as liability in the balance
sheet.
v) Other comprehensive income
BFRS: As per BAS 1 Other Comprehensive Income (OCI) is a component of financial statements or the
elements of OCI are to be included in a single Other Comprehensive Income statement.
Bangladesh Bank: Bangladesh Bank has issued templates for financial statements which will 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 Income allowed to be included in a single Other Comprehensive Income (OCI) Statement. As such the Bank does not prepare
18
the other comprehensive income statement. However, elements of OCI, if any, are shown in the
statements of changes in equity.
vi) Financial instruments – presentation and disclosure
In several cases Bangladesh Bank guidelines categorize, recognize, measure and present financial
instruments differently from those prescribed in BAS 39. As such full disclosure and presentation requirements of BFRS 7 and BAS 32 cannot be made in the financial statements.
vii) Financial guarantees
BFRS: As per BAS 39, financial guarantees are contracts that require an entity to make specified
payments to reimburse the holder for a loss it incurs because a specified debtor fails to make payment
when due in accordance with the terms of a debt instrument. Financial guarantee liabilities are recognized initially at their fair value, and the initial fair value is amortized over the life of the financial
guarantee. The financial guarantee liability is subsequently carried at the higher of this amortized amount and the present value of any expected payment when a payment under the guarantee has become
probable. Financial guarantees are included within other liabilities.
Bangladesh Bank: As per BRPD 14, financial guarantees such as letter of credit, letter of guarantee will
be treated as off-balance sheet items. No liability is recognized for the guarantee except the cash margin.
viii) Cash and cash equivalent
BFRS: Cash and cash equivalent items should be reported as cash item as per BAS 7.
Bangladesh Bank: Some cash and cash equivalent items such as „money at call on short notice‟, treasury
bills, Bangladesh Bank bills and prize bond are not shown as cash and cash equivalents. Money at call on short notice presented on the face of the balance sheet, and treasury bills, prize bonds are shown in
investments.
ix) Non-banking asset
BFRS: No indication of Non-banking asset is found in any BFRS.
Bangladesh Bank: As per BRPD 14, there must exist a face item named Non-banking asset.
x) Cash flow statement
BFRS: The Cash flow statement can be prepared using either the direct method or the indirect method. The presentation is selected to present these cash flows in a manner that is most appropriate for the
business or industry. The method selected is applied consistently.
Bangladesh Bank: As per BRPD 14, cash flow is the mixture of direct and indirect methods.
xi) Balance with Bangladesh Bank: (Cash Reserve Requirement)
BFRS: Balance with Bangladesh Bank should be treated as other asset as it is not available for use in day to day operations as per BAS 7.
Bangladesh Bank: Balance with Bangladesh Bank is treated as cash and cash equivalents.
19
xii) Presentation of intangible asset
BFRS: An intangible asset must be identified and recognized, and the disclosure must be given as per
BAS 38.
Bangladesh Bank: There is no regulation for intangible assets in BRPD 14.
xiii) Off-balance sheet items
BFRS: There is no concept of off-balance sheet items in any BFRS; hence there is no requirement for
disclosure of off-balance sheet items on the face of the balance sheet.
Bangladesh Bank: As per BRPD 14, off balance sheet items (e.g. Letter of credit, Letter of guarantee etc.)
must be disclosed separately on the face of the balance sheet.
xiv) Loans and Advances/Investments net of provision
BFRS: Loans and advances/Investments should be presented net of provision.
Bangladesh Bank: As per BRPD 14, provision on loans and advances/investments are presented
separately as liability and cannot be netted off against loans and advances.
2.2 Basis of consolidation
The Consolidated Financial Statements include the financial statements of NCC Bank Limited and its
subsidiary companies NCCB Securities and Financial Services Limited, NCCB Capital Limited & NCCB Exchange (UK) Limited made up to the end of the 31 December 2014. The consolidated financial
statements have been prepared in accordance with Bangladesh Accounting Standards 27-“Consolidated & Separate Financial Statements”. The Consolidated Financial Statements are prepared to common financial
year ending 31 December 2014.
Subsidiary
Subsidiary is that enterprise controlled by the bank. Control exists when the Bank has the power, directly
and indirectly, to govern the financial and operating policies of an 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 the control effectively commences until the date that
it control effectively ceases. Subsidiary company is consolidated using the purchase method of accounting. The conversion policy for assets and liabilities & income and expense items of NCCB
Exchange (UK) Limited using closing exchange rate and average exchange rate respectively.
Transactions eliminated on consolidation
All intra-group transactions, balances, income and expenses are eliminated on consolidation. Profit and
loss resulting from transactions is also eliminated on consolidation.
2.3 Use of estimates and judgments
In the preparation of financial statements, management requires to make judgments, estimates and
assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an on going basis. Revisions to accounting
estimates are recognized in the period in which the estimate is revised and in any future periods affected.
20
2.4 Functional and presentation currency
The financial statements are presented in Bangladeshi Taka which is the bank's functional currency
except as indicated.
2.5 Foreign currency transaction/translation
a) Foreign currencies transaction/translation
Foreign currency transactions are converted into equivalent taka using the ruling exchange rates on the
dates of respective transactions as per BAS-21 “The Effects of Changes in Foreign Exchange Rates”. Assets and liabilities in foreign currencies at 31 December 2014 have been converted into Taka currency
at the average of the prevailing buying and selling rates of the relevant foreign currencies at that date
except "Balances with other Banks and Financial Institutions" which have been converted as per directives of Bangladesh Bank vide its circular no. BRPD(R) 717/2004-959 dated 21 November 2004.
b) Commitments
Contingent liabilities / commitments for letters of credit and letters of guarantee denominated in foreign currencies are expressed in Taka terms at the rates of exchange ruling on the balance sheet date.
c) Translation gains and losses
The resulting exchange transaction gains and losses are included in the profit and loss account, except
those arising on the translation of net investment in foreign subsidiary.
d) Consolidation of financial statements of foreign operations
Consolidation, foreign exchange differences arising from the translation of net investments in foreign
entities are taken into capital reserve. When a foreign operation is disposed of, such currency translation
differences are recognized in the income statement as part of the gain or loss on disposal.
2.6 Cash flow statement
Cash flow statement has been prepared in accordance with the BRPD Circular No. 14, dated June 25,
2003 issued by the Banking Regulation & Policy Department of Bangladesh Bank. It reported cash flows during the period classified by operating activities, investing activities and financing activities.
2.7 Liquidity statement
The liquidity statement of assets and liabilities as on the reporting date has been prepared on residual
maturity term as per the following bases.
i) Balance with other banks and financial institutions, money at call and short notice, etc. are
shown on the basis of their maturity term; ii) Investments are on the basis of their respective maturity;
iii) Loans and advances / investments are on the basis of their repayment schedule;
iv) Fixed assets are on the basis of their useful lives; v) Other assets are on the basis of their realization / amortization;
vi) Borrowing from other banks, financial institutions and agents, etc. are as per their maturity / repayment terms;
vii) Deposits and other accounts are on the basis of their maturity term and past trend of withdrawal by the depositors;
viii) Provisions and other liabilities are on the basis of their payment / adjustments schedule.
21
2.8 Reporting period
These financial statements cover for the period from 01 January to 31 December 2014.
2.9 Offsetting
Financial assets and financial liabilities are offset and the net amount reported in the balance sheet when
there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis, realize the asset and settle the liability simultaneously.
2.10 Assets and basis of their valuation
2.10.1 Cash and cash equivalents
Cash and cash equivalents include notes and coins on hand, unrestricted balances held with Bangladesh
Bank and highly liquid financial asset which are subject to insignificant risk of changes in their fair value
and are used by the bank management for its short-term commitments.
2.10.2 Loans and advances
a) Loans and advances are stated in the balance sheet on gross basis.
B) Interest is calculated on a daily product basis but charged on quarterly basis and accounted for on accrual basis. Interest on classified loans and advances are kept in suspense account as per Bangladesh
Bank instructions and such interest is not accounted for as income until realized from borrowers [please refer Note- 9.10 (x)]. Interest is not charged on bad and loss loans as per guidelines of Bangladesh Bank.
Records of such interest amounts are kept in separate memorandum accounts.
c) Provision for loans and advances is made on the bases of quarter-end review by the management
following instructions contained in Bangladesh Bank BCD Circular no. 34 dated 16 November 1989, BCD Circular no. 20 dated 27 December 1994, BCD Circular no. 12 dated 4 September 1995, BRPD Circular 16
dated 6 December 1998, BRPD Circular no. 9 dated 14 May 2001, BRPD Circular no. 09 of August 2005 and BRPD Circular no.17 dated 06 December 2005, BRPD Circular no.32 dated 27 October 2010, BRPD
Circular no.14 dated 23 September 2012 and BRPD Circular no.19 dated 27 December 2012, BRPD
Circular no.5 dated 29 May 2013 BRPD Circular no.16 dated 18 November 2014. The provision rates are given below:
Particulars Rate
General provision on unclassified loans and advances
Standard general loans and advances 1%
Standard Small & Medium enterprise Financing 0.25%
Standard loans to Merchant Banking/BHs/SDs 2%
Std. Housing Fin. and loans for professional to set up a business 2%
Standard Consumers loan Scheme other than HF and LP 5%
Standard Short term Agri and Micro credit 2.50%
Special Mention Account general Loans and advances 1%
Special mention account Small & Medium enterprise Financing 0.25%
Special mention account loans to BHs/MBs/Sds 2%
Special mention account HF and LP 2%
Special mention account Consumer's loan scheme other than HF & LP 5%
Specific provision on classified loans and advances
Substandard (Agri & Micro credit) 5%
Doubtful (Agri & Micro credit) 5%
Substandard 20%
Doubtful 50%
Bad or Loss 100%
22
d) Loans and advances with no realistic prospect of recovery have been written off against which full
provisions made and legal cases initiated. Detailed memorandum records for all such written off accounts are maintained.
2.10.3 Investments
All investment securities are initially recognized at cost, being fair value of the consideration given, including acquisition charges associated with the investment. Premiums are amortized and discounts
accredited, using the effective yield method and are taken to discount income. The valuation methods of investments used are:
Held to maturity (HTM)
Investments which have „fixed or determinable payments‟ and are intended to be „held to maturity‟ other than those that meet the definition of „held at amortized cost-others‟ are classified as held to maturity.
These investments are subsequently measured at present value as per Bangladesh Bank guideline. Investments in securities have been revalued as mark to market as at December 31, 2014. The gain of
revaluation from the held to maturity securities has been shown in the statement of changes in equity of
December 31, 2014. Held for trading (HFT)
Investments classified in this category are acquired principally for the purpose of selling or repurchasing
in short-trading or if designated as such by the management after initial recognition, investments are measured at fair value and any change in the fair value is recognized in the statement of income for the
period in which it arises. These investments are subsequently revalued at current market value on weekly
basis as per Bangladesh Bank guidelines. Revaluation gain has been shown in revaluation reserve account & revaluation loss has been shown in profit & loss account.
Value of investments has been enumerated as follow:
Item Applicable accounting value
Government treasury bills-HTM Amortized value
Government treasury bills-HFT Market value
Government treasury bonds-HTM Amortized value
Government treasury bonds-HFT Market value
Prize bonds At cost
Investment in listed securities:
These securities are bought and held primarily for the purpose of selling them in future or held for
dividend income. Unrealized gains are not recognized in the profit and loss account. But provision for
diminution in value of investment is provided in the financial statements which market price is below the cost price of investment (Note-8.3).
Investment in unquoted securities
Investment in unquoted securities is reported at cost under cost method. Adjustment is given for any shortage of book value over cost for determining the carrying amount of investment in unquoted
securities.
Investment in subsidiary
Investment in subsidiary is accounted for under the cost method of accounting in the Bank‟s financial
statements in accordance with the BAS-27. Accordingly Investment in subsidiary is stated in the Bank‟s Balance Sheet at cost, less impairment losses if any.
23
2.10.4 Property, plant and equipment
Recognition and measurement
All fixed assets except land and buildings/apartments are stated at historical cost and land and
Building/Apartments at revalued amount (whenever applicable) less accumulated depreciation as per BAS
-16” Property, Plant and Equipment”. The cost of acquisition of an asset comprises its purchase price and any directly attributable cost of bringing the assets to its working condition for its intended use inclusive
of inward freight, duties and non refundable taxes.
Subsequent cost:
The cost of replacing part of such an item of fixed assets is recognized in the carrying amount of an item
of property, plant and equipment if it is probable that the future economic benefits embodied with the part will flow to the company and the cost of the item can be measured reliably. The cost of day to day
servicing of fixed asset is recognized in profit and loss as incurred.
Depreciation:
Depreciation is charged for the year at the following rates on reducing balance method on all fixed assets
other than vehicles and software on which straight line depreciation method is followed and no depreciation is charged on land:
Category of fixed assets Rate of depreciation
Land Nil
Building/apartment & structure 2.50%
Furniture & fixture 10.00% to 20.00%
Office equipment & machineries 20.00%
Vehicles (straight line) 20.00%
d) For additions during the year, depreciation is charged for the remaining days of the period and
for disposal depreciation is charged up to the date of disposal.
e) On disposal of fixed assets the cost and accumulated depreciation are eliminated from the fixed assets schedule and gain or loss on such disposal is reflected in the profit and loss account which
is determined with reference to the net book value of the assets and net sale proceeds.
2.10.5 Intangible assets:
a) An intangible asset is recognized if it is probable that the future economic benefits that are
attributable to the asset will flow to the entity and the cost of assets can be measured reliably.
b) Software represents the value of computer application software licensed for use of the Bank,
other than software applied to the operation software system of computers. Intangible assets are carried at its cost, less accumulated amortization and any impairment losses. Initial cost
comprises license fees paid at the time of purchase and other directly attributable expenditure that are incurred in customizing the software for its intended use.
c) Software is amortized using the following method and rates:
Category of intangible assets Rate of amortization
Software (straight line) 20.00%
24
2.10.6 Other assets
a) Provision for other assets
Other assets have been classified as per BRPD circular no. 14 dated 25.06.2001 of Bangladesh Bank and
necessary provisions made thereon accordingly and for item not covered under the circular adequate
provision have been made considering their recoverability.
2.10.7 Securities purchased under re-sale agreement
Securities purchase under re-sale agreements are treated as collateralized lending and recorded at the consideration paid and interest accrued thereon. The amount lent is shown as an asset either as loans
and advances to customers or loans to other banks.
The difference between purchase price and resale price is treated as interest received and accrued evenly
over the life of REPO agreement.
2.10.8 Receivables
Receivables are recognized when there is a contractual right to receive cash or another financial asset
from another entity.
2.10.9 Inventories
Inventories are measured at cost.
2.10.10 Leasing
Leases are classified as finance leases whenever „the terms of the lease‟ transfer substantial ly all the risk
and rewards of ownership to the lessee as per BAS-17 “Lease”.
The bank as lessor
Amount due from lessees under finance leases are recorded as receivables at the amount of the Banks
Loans and Advances in the leases.
The bank as lessee
The Bank has no assets under finance or operating Leases.
2.10.11 Non-banking assets
There are no assets acquired in exchange for loan during the year of financial statements.
2.11 Reconciliation of inter-bank and inter-branch account
Accounts with regard to inter-bank (in Bangladesh and outside Bangladesh) are reconciled regularly and
there are no material differences which may affect the financial statements significantly.
Un-reconciled entries / balances in case of inter-branch transaction as on the reporting date are not material.
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2.12 Share capital
Ordinary shares are classified as equity when there is no contractual obligation to transfer cash or other
financial assets.
2.13 Statutory reserve
Bank Companies Act, 1991 (Amendment up to 2013) requires the bank to transfer not less than 20% of
its current period profit before tax to reserve until such reserve equals to its paid up capital.
2.14 Revaluation reserve
When an asset‟s carrying amount is increased as a result of a revaluation, the increased amount credited
directly to equity under the heading of revaluation surplus/reserve as per BAS-16: “Property, Plant and Equipment”. The Bank revalued the assets of Land and Buildings which is absolutely own by the Bank
and the increased amount transferred to revaluation reserve.
2.15 Minority interest in subsidiary
Minority interest in business is an accounting concept that refers to the portion of a subsidiary
corporation‟s stock that is not owned by the parent corporation. The magnitude of the minority interest in the subsidiary company is always less than 50% of outstanding shares; else the corporation would cease
to be a subsidiary of the parent. Minority interest belongs to other investors and is reported on the consolidated balance sheet of the owing company to reflect the claim on assets belonging to other, non-
controlling shareholders. Also, minority interest is reported on the consolidated income statement as a
share of profit belonging to minority shareholders.
2.16 Deposits and other accounts
Deposits by customers and banks are recognized when the bank enters into contractual provisions of the
arrangements with the counterparties, which is generally on trade date, and initially measured at the consideration received.
2.17 Borrowings from other banks, financial institutions and agents
Borrowed fund include call money deposits, borrowings, re-finance borrowings and other term borrowings from banks. They are stated in the balance sheet at amounts payable. Interest paid/payable
on these borrowings is charged to the income statements.
Disclosures on borrowings against REPO are shown in Annexure-J
2.18 Basis for valuation of liabilities and provisions
2.18.1 Provision for taxation
The current tax payable is based on taxable profit for the year. Taxable profit differs from profit as
reported in the Profit & Loss Account because it excludes items of income or expense that are taxable or
deductible. The Bank's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the date of Balance Sheet.
Provision for current income tax has been made @ 42.5% on accounting profit made by the Bank after
considering some of the add backs of income and disallowances of expenditure as per Income Tax Ordinance 1984.
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2.18.2 Deferred taxation
Deferred tax liabilities are the amount of income taxes payable in future periods in respect of taxable
temporary differences. Deferred tax assets are the amount of income taxes recoverable in future periods in respect of deductible temporary differences. Deferred tax assets and liabilities are recognized for the
future tax consequences of timing difference arising between the carrying values of assets, liabilities,
income and expenditure and their respective tax bases. Deferred tax assets & liabilities are measured using tax rates and tax laws that have been enacted or substantially enacted at the balance sheet date.
The impact on the account of changes in the deferred tax assets and liabilities has also been recognized in the profit and loss account as per BAS -12 “Income Taxes”.
Disclosures on Deferred taxes are shown in note-14.4.1.
2.18.3 Retirement benefits to the employees
The retirement benefits accrued for the employees of the bank as on reporting date have been accounted for in accordance with the provisions of BAS-19 “Employee Benefits”. The bank operates retirement
benefits scheme for its permanent employees. Elements of which are as under:
a) Provident fund
Provident fund benefits are given to the permanent employees‟ of the bank in accordance with bank‟s
service rules. Accordingly a trust of deed and provident fund rules were prepared. The Commissioner of Income Tax, Taxes Zone-04, Dhaka has approved the provident fund as a recognized provident fund
within the meaning of section 2(52), read with the provisions of part - B of the First Schedule of Income
Tax Ordinance 1984. The recognition took effect from 16.01.1992. The fund is operated by a Board of Trustees consisting 06 (six) members. All confirmed employees of the bank are contributing 10% of their
basic salary as subscription to the fund. The bank also contributes equal amount of the employees‟ contribution. Interest earned from the investments is credited to the members account on yearly basis.
b) Gratuity fund
The bank has operated funded gratuity fund which was approved by National Board of Revenue on 17.09.2009. The fund is operated Board of Trustees. Provision in respect of which is made annually
covering all its permanent eligible employees as per BAS-19 “Employee Benefits”.
c) Superannuation fund
The bank operates an employees‟ Superannuation Fund Trust by a separate Board of Trustees consisting
of 05 (Five) members. The death-cum survival benefits are given to the employees as per the eligibility narrated in the Trust Rules. The fund got recognition from the National Board of Revenue (NBR) effect
from 01.01.2004 under the section 3 and 4 of part –A of First Schedule of Income Tax Ordinance 1984.
The bank contributes to the fund annually as per Superannuation Fund Rules of the bank.
d) Benevolent Fund
NCCBL employees‟ benevolent fund was established in the year 2007 for the welfare of the distressed
employees and their dependents. The employees of the bank contribute to the fund at a rate applicable for each grade from their monthly salary.
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2.18.4 Provision for liabilities
A provision is recognized in the balance sheet when the bank has a legal or constructive obligation of a
result of a past event and it is probable that an outflow of economic benefit will be required to settle the obligation in accordance with the BAS-37 “Provisions, Contingent Liabilities and Contingent Assets”.
2.18.5 Provision for Off-balance sheet items
Off-balance sheet items have been disclosed under contingent liabilities and other commitments as per
Bangladesh guidelines. As per BRPD Circular no.10 dated September 18, 2007 & BRPD Circular no.14
dated September 23, 2012, Banks are advised to maintain provision @ 1.00% against Off-balance sheet exposure in addition to the existing provisioning arrangement.
2.18.6 Provision for NOSTRO accounts:
As per instructions contained in the circular letter no. FEPD (FEMO)/01/2005-677 dated September 13,
2005 issued by Foreign Exchange Policy Department of Bangladesh Bank, Banks are required to make provision regarding the un-reconciled debit balance of NOSTRO account over more than three months as
on the reporting date in these financials. Since there are no un-reconciled entries which are outstanding
more than three months then Bank‟s are not required to make provision.
2.19 Revenue recognition
2.19.1 Interest income
In terms of the provision of the BAS-18 “Revenue” the interest income is recognized on accrual basis. Interest on loans and advances ceases to be taken in to income when such advances are classified. It is
than kept in interest suspense in a memorandum account. Interest on classified loans and advances is
accounted for on a cash receipt basis.
2.19.2 Investment income
Interest income on investments is recognized on accrual basis. Capital gain on investments in shares is also included in investment income. Capital gain is recognized when it is realized.
2.19.3 Fees and commission income
Fees and commission income arises on services provided by the bank are recognized on a cash received basis. Commission charged to customer on letters of credit and letters of guarantee is credited to income
at the time of effecting the transactions.
2.19.4 Dividend income on shares
Dividend income is recognized when shareholders' right to receive is established.
2.19.5 Interest paid and other expenses
In terms of the provisions of BFRS, interest and other expenses are recognized on accrual basis.
2.19.6 Dividend payments
Interim dividends are recognized when they are paid to shareholders. Final dividend is recognized when it
is approved by the shareholders.
Dividend payable to the bank‟s shareholders are recognized as a liability and deducted from the
shareholders equity in the period in which the shareholders right to receive the payment is established.
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2.20 Risk management
The risk of the Bank may be defined as the possibility of losses, financial or otherwise. The risk
management of the Bank covers 06 core risks i.e. Credit Risk, Internal Control & Compliance Risk, Money Laundering Risk, Asset Liability Management Risk (Balance Sheet Risk), Foreign Exchange Risk and
Information Technology Risk. As a part of risk management, adequate capital is maintained against
Credit Risk, Market Risk and Operational Risk under Basel-II accord. Under the second pillar of Basel-II, a Supervisory Review Process (SRP) team has been formed to review, monitor and maintain adequate
capital considering all relevant risks. Quarterly Stress Testing is conducted to assess the impact of different risks associated with banking business on asset, liability & ultimately on capital and the report is
submitted before the Board of Directors and to Bangladesh Bank regularly. The prime objective of the risk management is that the bank evaluates and takes well calculative business risks and there by
safeguarding the banks capitals, its financial resources and profitability from various business risks
through its own measures and through implementing Bangladesh Bank guidelines and following some of the best practices as under:
2.20.1 Credit risk
It arises mainly from lending, trade finance, and leasing and treasury business. This can be described as potential loss arises from the failure of a counter party to perform as per contractual agreement with the
bank. The failure may result from unwillingness of the counter party of decline in his or her financial condition there for the banks credit risk management activities have been designed to address all these
issues.
The Bank has segregated duties of the officers / executives involved in credit related activities a separate
corporate division has been formed at Head office which is entrusted with the duties of maintaining effective relationship with the customers, marketing of credit products, exploring now business
opportunities etc. moreover, credit approval, administration, monitoring and recovery functions have been segregated. For this purpose, three separate units have been formed within the credit division these
are a) Credit risk Management Unit b) Credit Administration Unit and c) Credit monitoring and recovery
Unit. Credit risk management Unit is entrusted with the duties of maintaining assets quality, assessing risk in lending to a particular customer, sanctioning credit, formulating policy / strategy for lending
operation, etc. Adequate provision has been made on classified loans is shown in Note 14.5 (a).
A thorough assessment is done before sanction of any credit facility at Credit Risk Management unit. The
risk assessment includes borrower risk analysis, financial analysis, industry analysis, historical performance of the customer, security of the proposed credit facility, etc. The assessment process starts
at Corporate Credit Division by the Relationship Manager / Officer and ends at Credit Risk Management Unit when it is approved / declined by the competent authority. Credit approval authority has been
delegated to the individual at executives. Proposals beyond their delegation are approved / declined by the Executives Committee and / or the Management of the Bank. In determining Single borrower / large
loan limit, the instructions of Bangladesh Bank are strictly followed. Internal audit is conducted at
periodical intervals to ensure compliance of Banks and Regulatory policies. Loans are classified as per Bangladesh Bank‟s guidelines. Concentration of single borrower/large loan limit is shown in Annexure-C.
2.20.2 Foreign exchange risk
Foreign exchange risk is defined as the potential change in earning due to change in market prices. The foreign 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 requirements. No foreign exchange dealing on Banks account was conducted during the year.
Treasury Department independently conducts the transactions and the back office of treasury is responsible for verification of the deals and passing of their entries in the books of account. All foreign
29
exchange transactions are revalued at Mark-to-Market rate as determined by Bangladesh Bank at the
month-end. All NOSTRO accounts are reconciled on a monthly basis and the management for its settlement reviews outstanding entry beyond 30 days. The position maintained by the bank at the end of
day was within the stipulated limit prescribed by the Bangladesh Bank.
2.20.3 Asset Liability Management
The Assets Liability Committee (ALCO) of the Bank monitors Market risk and liquidity risks of the bank.
The Market risk is defined as potential charge in earnings due to change in rate of interest, foreign exchange rates which are not of trading nature. ALCO reviews liquidity requirement of the Bank, the
maturity of assets and liabilities, deposit and lending, pricing strategy and the liquidity contingence plan. The primary objective of the ALCO is to monitor and avert significant volatility in Net Interest Income
(NII), investment value and exchange earnings.
2.20.4 Money Laundering Risk
Money Laundering Risk arises from non-compliance of money laundering related instructions of the
regulatory body. It's consequence are dire & far reaching and may be in the form of financial penalty,
reputation loss, legal harassment and even the risk of sustainability. Weakness in money laundering prevention and combating terrorist financing may lower the image of the Bank in local & global
environment. It may also reduce the confidence of the stakeholders. For involvement in money laundering & terrorist financing, the regulatory bodies may impose restrictions in expansion of business
and Bank may lose the market share. Banks around the globe may be unwilling to establish correspondent banking relationship if money laundering prevention and combating financing terrorism
status are not up to the mark. The following initiatives have been taken by our Bank to comply with the
requirements of Bangladesh Bank:
Central Compliance Unit (CCU) at Head Office and Branch Compliance Unit (BCU) at branch level have been formed headed by Chief Anti-Money Laundering Compliance Officer (CAMLCO) and Branch Anti-
Money Laundering Compliance Officer (BAMLCO) respectively.
Policy Guideline on Anti Money Laundering (AML) and Combating Financing Terrorism (CFT) has been
revised & updated complying with Bangladesh Bank‟s instruction & circulars/circular letters.
Uniform Account Opening Form was introduced where KYC is a must. As per Money Laundering
Prevention Act-2012, Bangladesh Bank instruction and BFIU master circular no. 10; branches have been instructed to obtain full & accurate information of the clients while establishing banking
relationship.
Actual transactions are compared with Transaction Profile (TP) to identify abnormal and suspicious transaction(s).
Branch incumbents are always responsible for ongoing monitoring of Account Transactions & matching given data with the transactions or activity. Branches identified Suspicious Transaction by transaction
symptoms & generate STR and send to CCU-AML, Head Office. After investigate & evaluate then sends Suspicious Transaction Report (STR) directly to BFIU of Bangladesh Bank using goAML web software
and manually as per article 7 of BFIU master circular 10 & Bangladesh Banks Instruction within
short time.
Branch generates monthly Cash Transaction Report (CTR) for threshold amount Tk. 10 lacs & above both for FIU Software & goAML Software filing up the mandatory fields within given deadline. Central
Compliance Unit on verification & compilation sends XmL Cash Transaction Report (CTR) directly to BFIU of Bangladesh Bank using goAML web software and CD as per article 6 of BFIU master
circular 10 & Bangladesh Banks Instruction.
30
In accordance with the instructions of BFIU, Banks provide the information of customer account within
the mentioned time limit in the issued letter. If any account / amount are freeze bank confirms the same immediately to BFIU.
Customers are graded on the basis of risk. High risk customers are closely monitored and Enhanced
Due Diligence is applied in this case.
Self Assessment is done by the branches and a summary report is prepared and submitted to the
Management and Bangladesh Bank half yearly basis.
Independent Testing Procedure is done while conducting audit in the branches. The same is summarized and placed before the Management and Bangladesh Bank half yearly basis."
As per article 3.2, 3.7, 3.8 & 3.9 of Bangladesh Bank's BFIU Circular No. 10, dated 28 December 2014, branches have been instructed to apply Enhance Due Diligence (EDD) in opening & maintaining
accounts of Politically Exposed Persons (PEPs), Influential Persons (IPs), their family members and close associates.
Apart from Independent Testing Procedures, 50 branches have been inspected in the year 2014 on money laundering prevention and combating financing terrorism.
Extensive training is being continuously imparted to the officials of the Bank to make them familiar with
money laundering prevention & combating financing terrorism and to mitigate the risk arising there from. In the year 2014, total 469 officials were provided training on Anti Money Laundering &
Combating Financing Terrorism through outreach workshop. Our Training Institute is also arranging
training/ workshop on the issue on regular basis.
Up to the year 2014 total 29 circulars of former Anti-Money Laundering Department and 10 circulars of present Bangladesh Financial Intelligent Unit (BFIU) of Bangladesh Bank have been disseminated to
Bangladeshi all schedule banks for compliance.
Recently BFIU of Bangladesh Bank issued BFIU Circular No.10; Dated 28 December 2014 lifted
Master Circular. Total AMLD & BFIU Circular {except AML Circular No.10, (Cash Transaction Reporting form), AML Circular No. 22, BFIU Circular No.02, BFIU Circular No.07 & BFIU
Circular letter-1} are compiled & accumulated making BFIU master circular no. 10 for all schedule
Banks. Central Compliance Unit (CCU-AML) of Head Office has disseminated the same through by instruction circular to the branches for compliance.
Quarterly meeting of Central Compliance Unit (CCU) and Monthly meeting of Branch Compliance Unit
(BCU) are arranged and the decisions are gradually implemented.
Before establishing correspondent banking relationship, status on money laundering prevention and
combating financing terrorism of the respondent banks are obtained through a questionnaire developed by Bangladesh Bank. Correspondent banking relationships with any bank is established upon receipt of
the desired information and subject to our satisfaction pursue by article 3.10 of BFIU master circular no 10.
As a precautionary measure and as per instruction of Central Bank, we do not establish Correspondent Banking relationship with any shell bank or any bank having banking relationship with any shell bank.
Screening Mechanism is strictly followed for every customer and especially any foreign transactions like
import, export, foreign remittance, foreign guarantee & correspondent banking relationship through
System software procured by the bank.
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Records of Accounts, supporting documents, Transactions, Instruments /vouchers & records of Walk in
Customers are maintained for all operating accounts & above documents are always maintained at
least for 5 (five) years after closes of the account.
2.20.5 Internal Control and Compliance
Operational loss may arise from error and fraud due to lack of internal control and compliance. Management through internal control and compliance Division controls operational procedure of the
Bank. Internal control and compliance division undertakes periodical and special audit of the branches and departments at Head Office for review of the operation and compliance of statutory requirement.
The Audit Committee of the Board subsequently reviews the reports of the internal control and compliance division.
2.20.6 Information technology
NCCBL follows the guideline stated in BRPD Circular no. 14 dated 23 October 2005 regarding “Guideline on Information and Communication Technology for Scheduled Banks”.
IT management deals with IT policy documentation, internal IT audit, training and insurance.
IT operation management covers the dynamics of technology operation management including change management, assets management and operating environment procedures management. The objective is
to achieve the highest levels of technology service quality by minimum operational risk.
Physical security involves providing environmental safeguards as well as controlling physical access to
equipment and data. In order to ensure that information assets are protected against risk, there are controls over:
a) Password
b) User ID maintenance
c) Input d) Network security
e) Data encryption f) Virus protection
g) Internet and e-mail
The Business Control Plan (BCP) is formulated to cover operational risk and taking into account the
potential for wide area disasters, data center disasters and the recovery plan. The BCP takes into account the backup and recovery process.
2.20.7 Market Risk:
Interest rate risk
Interest rate risk may arise either from trading portfolio and non-trading portfolio. The trading portfolio of
the Bank consists of Government treasury bills of 28 days maturity. The short-term movement in interest rate is negligible or nil. Interest rate risk of non-trading business arises from mismatches between the
future yield of an asset and its funding cost. Asset liability Committee (ALCO) monitors the interest rate movement on a regular basis.
Equity risk
Equity risk arises from movement in market value of equities held. The market value of equities is lesser
than cost price against which provision is appearing made in these financial statements.
32
2.20.8 Reputation risk arising from money laundering incidences
Money laundering risk is defined as the loss of reputation and expenses incurred as penalty for being negligent in prevention of money laundering. For mitigating the risks, the bank has a designated Chief
Compliance officer at Head office and Compliance officers at branches, who independently review the
transactions of the accounts to verify suspicious transactions. Manuals for prevention of money laundering have been established and transaction profile has been introduced. Training is continuously
given to all the category of Officers and Executives for developing awareness and skill for identifying suspicious activities / transactions.
2.20.9 Operational risk
Operational risk may arise from error and fraud due to lack of internal control and compliance.
Management through internal control and compliance division controls operational procedure of the Bank. Internal Control and compliance division undertakes periodical and special audit of the branches and
departments at the Head Office for review of the operation and compliance of statutory requirements.
The Audit Committee of the Board subsequently reviews the reports of the internal control and compliance division.
2.21 Earnings per share
Basic earnings per share
Basic earnings per share have been calculated in accordance with BAS-33 “Earnings per Share” which has been shown on the face of the profit and loss account. This has been calculated by dividing the basic
earning by the weighted average number of ordinary shares outstanding during the period.
Diluted earnings per share
No diluted earning per share is required to be calculated for the period as there was no scope for dilution
during the year under review.
2.22 Memorandum items
Memorandum items are maintained to have control over all items of importance and for such transactions
where the Bank has only a business responsibility and no legal commitment. Stock of Traveler‟s Cheques (TC), Saving Certificates and other fall under the memorandum items.
2.23 Compliance of Bangladesh Accounting Standards (BAS) and Bangladesh Financial Reporting
Standards (BFRS):
The Institute of Chartered Accountants of Bangladesh (ICAB) is the Official Standard setting body as well
as the regulator of accounting profession in the country. ICAB has adopted most of the International Accounting Standards (IASs) and International Financial Reporting Standards (IFRSs) as Bangladesh
Accounting Standards (BASs) and Bangladesh Financial Reporting Standards (BFRSs). While preparing the
financial statements, NCC Bank has applied all the applicable of BASs & BFRSs for preparation and presentation of financial statements except described in note no.2.1 as noted below:
Name of the BAS BAS no Status
Presentation of Financial Statements 1 Not Applied*
Inventories 2 Applied
Cash Flow Statements 7 Not Applied*
Accounting Policies, Changes in Accounting Estimates and Errors 8 Applied
Events after the Balance Sheet Date 10 Applied
Construction Contracts 11 Not applicable
Income Taxes 12 Applied
33
Property, Plant and Equipment 16 Applied
Leases 17 Applied
Revenue 18 Applied
Employee Benefits 19 Applied
Accounting for Government Grants and Disclosure of Government
Assistance
20 Not applicable
The Effects of Changes in Foreign Exchange Rates 21 Applied
Borrowing Costs 23 Applied
Related Party Disclosures 24 Not applicable
Accounting and Reporting by Retirement Benefit Plans 26 Not applicable
Consolidated and Separate Financial Statements 27 Applied
Accounting for Investments in Associates 28 Not applicable
Financial Reporting of Interest in Joint Ventures 31 Not applicable
Financial Instruments: Presentation 32 Not Applied*
Earnings Per Share 33 Applied
Interim Financial Reporting 34 Applied
Impairment of Assets 36 Applied
Provisions, Contingent Liabilities and Contingent Assets 37 Applied
Intangible Assets 38 Applied
Financial Instruments: Recognition and Measurement 39 Not Applied*
Investment Property 40 Applied
Agriculture 41 Not applicable
Name of the BFRS BFRS no.
Status
First time adoption 1 Not applicable
Share Based Payment 2 Not applicable
Business Combinations 3 Not applicable
Insurance Contract 4 Not applicable
Non-current Assets Held for Sale and Discontinued Operations 5 Not applicable
Exploration for and Evaluation of Mineral Resources 6 Not applicable
Financial Instruments: Disclosure 7 Not Applied*
Operating Segments 8 Applied
Financial Instruments-R&M 9 Not yet
adopted but under review
Consolidated Financial Statements 10 Applied
Joint Arrangements 11 Not applicable
Disclosure of interest in other entities 12 Not applicable
Fair Value Measurement 13 Not applicable
* The above BAS and BFRS are not applied due to compliance of the Banking Companies Act 1991, Rules and regulations and instructions issued by Bangladesh Bank time to time.
2.24 Regulatory and legal compliance
The Bank complied with the requirements of following regulatory and legal authorities:
a) The Banking Companies Act 1991 (Amended up to 2013);
b) The Companies Act 1994; c) Rules and regulations issued time to time by Bangladesh Bank;
34
d) The Bangladesh Securities and Exchange Rules 1987, The Bangladesh Securities and
Exchange Ordinance 1969, The Securities and Exchange Commission Act 1993, The Bangladesh Securities and Exchange Commission (Public Issue) Rules 2006;
e) The Income Tax Ordinance 1984; f) The VAT Act 1991;
g) Other laws & regulations as applicable.
2.25 Information about business Segments
Segments information is presented in respect of the group‟s business.
Business Segments
Business segments report consists of products and services whose risks and returns are different from
those of other business segments. These segments comprise conventional Banking including Offshore Banking Unit, Investment Services (NCCBSFSL & NCCBCL) and Remittance (NCCB Exchange (UK) Limited.
Business segment report shown in Annexure-M
Geographical segments
Geographical segments report consists of products and services within a particular economic environment
where risk and returns are different from those of other economic environments. These segments comprise of NCC Bank Limited, Offshore Banking Unit, NCCB Securities and Financial Services Limited,
NCCB Capital Limited & NCCB Exchange (UK) Limited. Geographical segments reports are shown in Annexure-M.
Inter segment transactions generally based on inter branch fund transfer measures as determined by the management. Income, expenses, assets, liabilities are specifically identified with individual segments.
Based on such allocation segment balance sheet as on 31 December 2014 and segment profit and loss account for the year ended 31 December 2014 have been prepared.
2.26 Events after the balance sheet date
Events after the balance sheet date that provide additional information about the bank‟s position at the
balance sheet date are reflected in the financial statements. Events after the balance sheet date are not adjusting event are disclosed in the notes when material.
2.27 Related Party disclosure shown in Annexure- I
2.28 Assets pledge as security
The bank has secured liability as mentioned in notes 12.01 and there was assets pledge as securities
against liabilities.
2.29 Credit rating of the bank
Last seven years Credit Ratings of our Bank are given below:
Year Date of Rating Long term Short Term Rating conducted by
2013 30.06.2014 AA AR-2 Alpha Credit Rating Limited
2012 30.06.2013 AA- AR-2 Alpha Credit Rating Limited
2011 24.05.2012 AA3 ST-2 Credit Rating Agency of
Bangladesh Limited (CRAB) 2010 23.06.2011 A1 ST-2
2009 24.06.2010 A1 ST-2
35
2008 29.06.2009 A2 ST-2
2007 09.06.2008 A2 ST-3
2.30 BASEL II implementation
The BASEL Committee on Banking Supervision has published a new framework for calculating minimum
capital requirement, known as „Basel II‟. The new guideline is structured around three pillars: (i) minimum capital requirement (on credit risk, market risk and operation risk), (ii) supervisory review
process and (iii) market discipline. Implementation of Basel II framework in Bangladesh will integrate the risk management process of the Bank and its capital adequacy requirement. Bangladesh Bank has formed
a National Steering Committee and Coordination Committee for implementation of BASEL II in Bangladesh. As per the Committee decision BASEL II has been fully implemented in Bangladesh from
January 2011. The National Steering Committee has indicated that following methodology of BASEL II
would be followed in Bangladesh:
I. Standardized method for credit and market risk. II. Basic indicator approach for operational risk.
III. Internal Ratings Base for credit risk has been applied from 2012 where prior permission from
Bangladesh Bank would be required.
2.31 The Bank’s compliance with related pronouncements by Bangladesh Bank:
a) Internal Control
The objective of internal control is to ensure that management has reasonable assurance that (a)
operations are effective, efficient and aligned with strategy, (b) financial reporting and management information is reliable, complete and timely accessible, (c) the entity is in compliance with applicable laws
and regulations as well as its internal policies and ethical values including sustainability, and (d) assets of
the company are safeguarded and frauds & errors are prevented or detected.
National Credit and Commerce Bank Limited has established an effective internal control system whose primary aim is to ensure the overall control of risks and provide reasonable assurance that the objectives
set by the bank will be met. It has designed to develop a high level risk culture among the personnel of
the bank, establish efficient and qualified operating model of the bank, ensure reliability of internal and external information including accounting and financial information, secure the Bank‟s operations and
assets, and comply with laws, regulatory requirements and internal policies.
The Board of Directors of NCC Bank Limited, through its Audit Committee, periodically reviews the effectiveness of Bank‟s internal control system covering all the material controls, including financial,
operational and compliance controls, risk management systems, the adequacy of resources, qualifications
and experience of staff of the accounting and financial reporting function, training programs, budget, etc. Board Audit Committee reviews the actions taken on internal control issues identified by the internal &
external auditors and regulatory authorities. It has active oversight on the internal audit‟s independence, scope of work and resources and it also reviews the functions of Internal Control & Compliance Division
of Head Office, particularly the scope of the annual audit plan and frequency of the internal audit
activities.
b) Internal Audit
Internal Audit is the continuous and systematic process of examining and reporting on the activities of an
organization undertaken by the specially assigned staff(s). Internal Auditor works as the Eyes & Ears of the management. It may therefore be used to bridge the gap between management and shop floor. It
can assure the management that the internal controls are adequate and in operations, the policies and systems laid down are being adhered to and accounting records provided by the lower level are correct.
36
Internal Audit Mechanism is used as an important element to ensure good governance of NCC Bank
Limited. Internal Audit Activity of NCC Bank Limited is effective and it provides senior management with a number of important services. These include detecting and preventing fraud, testing internal control, and
monitoring compliance with own policies & procedures, applicable rules & regulations, instructions/guidelines of regulatory authority etc.
During the period 2014, ICCD conducted inspection on many of the Branches/Divisions of Head Office of the Bank and submitted reports presenting the findings of the audits/inspections. Necessary control
measures and corrective actions have been discussed in the meetings of the Audit Committee of the Board and necessary steps have been taken according to the decision of the Committee for correct
functioning of Internal Controls & Compliance.
c) Fraud & Forgeries
The increasing wave of fraud and forgery cases in the banking sector in recent time calls for concerted
steps in identifying ways for reducing or preventing frauds and forgeries by analyzing the causes and effect of frauds and forgeries, and prescribing effective control strategies for salvaging frauds in the
banking sector. NCC Bank does always pay due attention on anti-fraud internal controls for prevention of
fraud and forgery. The Bank has already implemented some strategies like Financial Control Strategy, Personnel Control Strategy, Accounting Control Strategy, Credit Control Strategy, Cost Control Strategy,
Administrative Control Strategy, Process Control Strategy etc. in order to strengthening the control system further. Although it is not possible to eliminate all frauds because of the inherent limitations of
Internal Control System, the Board of Directors and management have taken all the measures to keep
the operational risk in a very minimum level. Internal Control and Compliance Division (ICCD) assesses and evaluates the effectiveness of Bank‟s anti-fraud internal control measures, recommends for further
improvement in implementation of aforesaid strategies and reports to the Bangladesh Bank of effectiveness of controls at the end of each quarter following their prescribed format. During the year
2014 2 (Two) instances of frauds were identified and reported to Bangladesh Bank. Total amount related to those frauds is Taka 109.91 lac (approx.) against which adequate provision has been maintained in the
books of accounts. Management is exerting their all out efforts to recover the aforesaid amount.
2.32 In the year 2013, Off-shore Banking unit was not incorporated in the financial statements due to an
error. In the year 2014, the error was identified and it was incorporated in the financial statements. In order to comply with Bangladesh Accounting Standard (BAS)-8 "Accounting Policies, Changes in
Accounting Estimates and Errors", it requires to restate the following items and to incorporate these in
the financial statements:
Particulars
Notes
Amount in Taka
31.12.2014
31.12.2013
01.01.2013
Balance with other banks and financial institutions :
6
In Bangladesh
468,186,926
328,019,533
1,087,904,404
Outside Bangladesh
Balance stated in Previous year
1,939,394,484
343,628,415
228,413,428
Adjustment for overstated of balance in Habib Metropolitan Bank
-
(14,890,342)
-
Restated balance of 2013 for comparison as on 31.12.2014
1,939,394,484
328,738,073
228,413,428
2,407,581,410
656,757,606
1,316,317,832
37
Particulars
Notes Amount in Taka
31.12.2014 31.12.2013 01.01.2013
Consolidated balance with other banks and financial institutions:
6(a)
In Bangladesh
NCC Bank Limited
468,186,926
328,019,533
1,087,904,404
NCCB Securities and Financial Services Limited
9,444,174
13,969,580
923,956
NCCB Capital Limited
271,032,940
271,044,320
257,006,262
NCCB Exchange (UK) Limited
-
-
-
748,664,040 613,033,433 1,345,834,622
Less: Intercompany transactions
Balance stated in Previous year 277,130,441 271,044,320 257,006,262
Adjustment - 301,643 -
Restated balance of 2013 for comparison as on 31.12.2014 277,130,441 271,345,963 257,006,262
Restated balance of 2013 for comparison as on 31.12.2014 471,533,599 341,687,470 1,088,828,360
Outside Bangladesh
NCC Bank Limited:
Balance stated in Previous year 1,939,394,484 343,628,415 228,413,428
Adjustment for overstated of balance in Habib Metropolitan Bank - (14,890,342) -
Restated balance of 2013 for comparison as on 31.12.2014 1,939,394,484 328,738,073 228,413,428
NCCB Securities and Financial Services Limited - - -
NCCB Capital Limited - - -
NCCB Exchange (UK) Limited 3,465,575 179,280 2,788,845
Restated balance of 2013 for comparison as on 31.12.2014 1,942,860,059 328,917,353 231,202,273
Restated balance of 2013 for comparison as on 31.12.2014 2,414,393,658 670,604,823 1,320,030,633
Loans and Advances 9
In Bangladesh
Loans, Cash Credits, Overdrafts etc. 88,739,476,147 86,363,661,614 77,821,560,088
Bills Purchased and Discounted :
In Bangladesh 1,749,385,406 1,719,414,409 2,022,236,157
Outside Bangladesh
Balance stated in Previous year 431,910,475 63,433,308 104,423,929
Adjustment for Off-shore banking unit - 20,696,500 -
Restated balance of 2013 for comparison as on 31.12.2014 431,910,475 84,129,808 104,423,929
Restated balance of 2013 for comparison as on 31.12.2014 90,920,772,028 88,167,205,831 79,948,220,174
Consolidated loans and advances 9 (a)
Loans, cash credits, overdrafts etc.:
NCC Bank Limited 88,739,476,147 86,363,661,614 77,821,560,088
NCCB Securities and Financial Services Limited. 4,607,372,304 4,514,072,239 4,224,253,670
NCCB Capital Limited - - -
NCCB Exchange (UK) Limited - - -
93,346,848,451 90,877,733,853 82,045,813,758
Less : Intercompany transactions 1,761,631,457 1,890,840,821 1,759,360,429
91,585,216,994 88,986,893,032 80,286,453,329
38
Particulars
Notes Amount in Taka
31.12.2014 31.12.2013 01.01.2013
Bills purchased and discounted:
NCC Bank Limited:
Balance stated in Previous year 2,181,295,881 1,782,847,717 2,126,660,086
Adjustment for Off-shore banking unit - 20,696,500 -
Restated balance of 2013 for comparison as on 31.12.2014 2,181,295,881 1,803,544,217 2,126,660,086
NCCB Securities and Financial Services Limited. - - -
NCCB Capital Limited - - -
NCCB Exchange (UK) Limited - - -
Restated balance of 2013 for comparison as on 31.12.2014 2,181,295,881 1,803,544,217 2,126,660,086
Less : Inter transactions - - -
2,181,295,881 1,803,544,217 2,126,660,086
Restated balance of 2013 for comparison as on 31.12.2014 93,766,512,875 90,790,437,249 82,413,113,415
Other assets 11
Balance stated in Previous year 4,077,095,326 5,689,537,290 4,249,255,937
Adjustment for wrongly charged in NCC Bank Capital Limited - 8,652,435 -
Adjustment for Off-shore banking unit - 320,301 -
Restated balance of 2013 for comparison as on 31.12.2014
4,077,095,326
5,698,510,026
4,249,255,937
Consolidated other Assets 11(a)
NCC Bank Limited:
Balance stated in Previous year 1,793,386,326 3,414,215,490 1,999,243,080
Adjustment for wrongly charged in NCC Bank Capital Limited - 8,652,435 -
Adjustment for Off-shore banking unit - 320,301 -
Restated balance of 2013 for comparison as on 31.12.2014 1,793,386,326 3,423,188,226 1,999,243,080
NCCB Securities and Financial Services Limited 218,703,243 171,669,733 115,614,475
NCCB Capital Limited 4,957,284 3,724,126 6,672,814
NCCB Exchange (UK) Limited 794,603 842,336 861,761
2,017,841,456 3,599,424,421 2,122,392,130
Less: Intercompany transaction 3,577,757 2,344,599 166,855,071
Restated balance of 2013 for comparison as on 31.12.2014 2,014,263,699 3,597,079,822 1,955,537,059
Borrowing from other banks, financial institutions and agents
12
Balance stated in Previous year 4,975,525,649 2,757,729,890 9,444,527,760
Adjustment for overstated of balance in Habib Metropolitan Bank - (14,890,342) -
Adjustment for Off-shore banking unit - 20,693,982 -
Restated balance of 2013 for comparison as on 31.12.2014 4,975,525,649 2,763,533,530 9,444,527,760
Consolidated borrowing from other banks, financial institutions and agents
12 (a)
NCC Bank Limited:
Balance stated in Previous year 4,975,525,649 2,757,729,890 9,444,527,760
Adjustment for overstated of balance in Habib Metropolitan Bank - (14,890,342) -
39
Adjustment for Off-shore banking unit - 20,693,982 -
Restated balance of 2013 for comparison as on 31.12.2014 4,975,525,649 2,763,533,530 9,444,527,760
NCCB Securities and Financial Services Limited 1,811,631,457 1,890,840,821 1,890,840,821
Particulars
Notes Amount in Taka
31.12.2014 31.12.2013 01.01.2013
NCCB Capital Limited - - -
NCCB Exchange (UK) Limited - - -
Restated balance of 2013 for comparison as on 31.12.2014 6,787,157,106 4,654,374,351 11,335,368,581
Less: intercompany transactions 1,761,631,457 1,890,840,821 1,890,840,821
Restated balance of 2013 for comparison as on 31.12.2014 5,025,525,649 2,763,533,530 9,444,527,760
Consolidated deposits and other accounts 13 (a)
Current deposits and other accounts
NCC Bank Limited 9,548,821,441 8,086,739,211 8,603,924,747
NCCB Securities and Financial Services Limited 31,722,794 28,851,135 25,949,165
NCCB Capital Limited - - -
NCCB Exchange (UK) Limited - - -
9,580,544,235 8,115,590,346 8,629,873,912
Less: Intercompany transactions
Balance stated in Previous year 277,130,441 271,044,320 499,075
Adjustment - 301,643 -
Restated balance of 2013 for comparison as on 31.12.2014 277,130,441 271,345,963 499,075
Restated balance of 2013 for comparison as on 31.12.2014 9,303,413,794 7,844,244,383 8,629,374,837
Other liabilities 14
Balance stated in Previous year
10,130,694,248
9,779,505,380
7,342,935,755
Adjustment for Off-shore banking unit
-
378,817
-
Restated balance of 2013 for comparison as on 31.12.2014
10,130,694,248
9,779,884,197
7,342,935,755
Consolidated other liabilities 14(a)
NCC Bank Limited:
Balance stated in Previous year
10,130,694,248
9,779,505,380
7,342,935,755
Adjustment for Off-shore banking unit - 378,817 -
Restated balance of 2013 for comparison as on 31.12.2014 10,130,694,248 9,779,884,197 7,342,935,755
NCCB Securities and Financial Services Limited 1,003,449,532 793,475,264 579,311,387
NCCB Capital Limited 17,648,110 16,173,814 10,071,090
NCCB Exchange (UK) Limited:
Balance stated in Previous year 7,723,411 6,626,514 26,735,880
Adjustment for exchange rate
- 39,375 -
Restated balance of 2013 for comparison as on 31.12.2014 7,723,411 6,665,889 26,735,880
Restated balance of 2013 for comparison as on 31.12.2014 11,159,515,301 10,596,199,164 7,959,054,112
Less: Intercompany transactions 3,577,757 2,344,599 166,855,071
Restated balance of 2013 for comparison as on 31.12.2014 11,155,937,549 10,593,854,568 7,792,199,041
40
Statutory reserve 16
Balance stated in Previous year 4,783,513,367 4,283,429,378 3,818,042,032
Profit Adjustment for Off-shore banking unit - (11,703) -
Restated balance of 2013 for comparison as on 31.12.2014 4,783,513,367 4,283,417,675 3,818,042,032
Particulars
Notes Amount in Taka
31.12.2014 31.12.2013 01.01.2013
Surplus in profit and loss account 19
Retained earnings brought forward from previous year
878,582,630
886,147,736
1,605,182,608
Adjustment for translation gain/(loss) 2,518 - -
Adjustment for NCCB Capital Ltd. - 8,652,436 -
878,585,148 894,800,172 1,605,182,608
Profit for the year:
Balance stated in Previous year 1,501,329,218 1,137,905,691 1,433,761,000
Adjustment for wrong treatment - - -
Adjustment for Off-shore banking unit - (58,516) -
Restated balance of 2013 for comparison as on 31.12.2014 1,501,329,218 1,137,847,175 1,433,761,000
Transfer to statutory reserve:
Balance stated in Previous year (500,095,692) (465,387,346) (548,549,207)
Profit Adjustment for Off-shore banking unit - 11,703 -
Adjustment for wrong treatment - - -
Restated balance of 2013 for comparison as on 31.12.2014
(500,095,692)
(465,375,643)
(548,549,207)
Transferred to general reserve
-
-
-
Transferred from general reserve
-
-
-
Bonus share transferred to paid-up capital
(382,345,450)
(695,173,550)
(1,010,081,230)
Cash dividend paid
(458,814,548)
-
(594,165,435)
Dep.on revalued amount of building Trans. to retained earnings
3,514,878
6,484,477
-
(837,645,120)
(688,689,073)
(1,604,246,665)
Restated balance of 2013 for comparison as on 31.12.2014
1,042,173,555
878,582,630
886,147,736
Consolidated surplus in profit and loss account 19(a)
Retained earnings brought forward from previous year
889,752,897
894,666,660
1,634,931,826
Adjustment for translation gain/(loss)
-
(124,155)
-
Adjustment for NCCB Capital Ltd.
-
8,652,435
-
889,752,897 903,194,940 1,634,931,826
Profit for the year:
Balance stated in Previous year
1,494,682,198
1,141,588,850
1,450,030,718
Adjustment for Off-shore banking unit
-
(56,002)
-
Restated balance of 2013 for comparison as on 31.12.2014 1,494,682,198 1,141,532,848 1,450,030,718
General reserve - - -
Interim dividend
-
-
- Transfer to statutory reserve:
41
Balance stated in Previous year
(500,095,692)
(465,387,346)
(548,549,207)
Profit Adjustment for Off-shore banking unit
-
11,703
-
Adjustment for wrong treatment
-
-
-
Restated balance of 2013 for comparison as on 31.12.2014 (500,095,692) (465,375,643) (548,549,207)
Particulars
Notes Amount in Taka
31.12.2014 31.12.2013 01.01.2013
Bonus share transferred to paid-up capital
(382,345,450)
(695,173,550)
(1,010,081,230)
Cash dividend paid
(458,814,548)
-
(631,665,435)
Dep.on revalued amount of building Trans. to retained earnings
3,514,878
6,484,477
- Exchange gain for translation to reporting currency separately treated
-
(910,174)
-
Less: Minority Interest
-
(2)
(12)
Restated balance of 2013 for comparison as on 31.12.2014
1,046,694,283
889,752,897
894,666,660
Interest income 22
Balance stated in Previous year
12,019,784,168
12,193,950,023
11,638,407,298
Adjustment for Off-shore banking unit
-
148,449
-
Restated balance of 2013 for comparison as on 31.12.2014
12,019,784,168
12,194,098,472
11,638,407,298
Consolidated interest income 22(a)
NCC Bank Limited:
Balance stated in Previous year
12,019,784,168
12,193,950,023
11,668,753,555
Profit Adjustment for Off-shore banking unit
-
148,449
-
Restated balance of 2013 for comparison as on 31.12.2014
12,019,784,168
12,194,098,472
11,668,753,555
NCCB Securities and Financial Services Limited
251,905,890
466,086,881
407,211,611
NCCB Capital Limited
-
10,854,216
12,540,501
NCCB Exchange (UK) Limited - - -
Restated balance of 2013 for comparison as on 31.12.2014
12,271,690,058
12,671,039,569
12,088,505,667
Less: Intercompany transactions
269,353,226
277,731,180
-
Restated balance of 2013 for comparison as on 31.12.2014
12,002,336,832
12,393,308,389
12,088,505,667
Commission, exchange and brokerage 25
Balance stated in Previous year
834,641,525
887,936,921
849,067,537
Transfer from other operating income
-
24,503,390
-
Restated balance of 2013 for comparison as on 31.12.2014
834,641,525
912,440,311
849,067,537
42
Consolidated commission, exchange & brokerage
25(a)
NCC Bank Limited:
Balance stated in Previous year 834,641,525 887,936,921 849,067,537
Transfer from other operating income - 24,503,390 -
Restated balance of 2013 for comparison as on 31.12.2014 834,641,525 912,440,311 849,067,537
Particulars
Notes Amount in Taka
31.12.2014 31.12.2013 01.01.2013
NCCB Securities and Financial Services Limited
102,173,092
102,914,461
139,465,640
NCCB Capital Limited - - -
NCCB Exchange (UK) Limited 5,674,031 2,710,515 275,633
Restated balance of 2013 for comparison as on 31.12.2014 942,488,648 1,018,065,287 988,808,810
Other operating income 26
Balance stated in Previous year 344,308,980 344,025,626 295,503,924
Transfer to Commission, exchange and brokerage - (24,503,390) -
Restated balance of 2013 for comparison as on 31.12.2014 344,308,980 319,522,236 295,503,924
`
Consolidated other operating income 26(a)
NCC Bank Limited:
Balance stated in Previous year
344,308,980
344,025,626
295,503,924
Transfer to Commission, exchange and brokerage
-
(24,503,390)
-
Restated balance of 2013 for comparison as on 31.12.2014
344,308,980
319,522,236
295,503,924
NCCB Securities and Financial Services Limited
3,412,269
4,773,187
1,807,673
NCCB Capital Limited
-
-
-
NCCB Exchange (UK) Limited
-
-
-
Restated balance of 2013 for comparison as on 31.12.2014
347,721,249
324,295,423
297,311,597
Other expenses 36
Balance stated in Previous year
254,914,885
240,598,299
362,213,245
Adjustment for Off-shore banking unit
-
-
-
Restated balance of 2013 for comparison as on 31.12.2014
254,914,885
240,598,299
362,213,245
Consolidated other expenses 36(a)
NCC Bank Limited
254,914,885
240,598,299
362,213,245
NCCB Securities and Financial Services Limited
16,194,627
14,676,463
24,119,918
NCCB Capital Limited
21,572
31,142
59,557
43
NCCB Exchange (UK) Limited:
Balance stated in Previous year
9,568,562
11,645,587
10,135,004
Adjustment for Off-shore banking unit
-
(4,024,551)
-
Restated balance of 2013 for comparison as on 31.12.2014
9,568,562
7,621,036
10,135,004
Restated balance of 2013 for comparison as on 31.12.2014
280,699,646
262,926,940
396,527,724
Particulars
Notes Amount in Taka
31.12.2014 31.12.2013 01.01.2013
Cash paid for other operating activities 38
Balance stated in Previous year
649,409,327
464,352,482
563,398,580
Adjustment
-
(2,869,382)
-
Restated balance of 2013 for comparison as on 31.12.2014
649,409,327
461,483,100
563,398,580
Consolidated cash paid for other operating activities
38(a)
NCC Bank Limited:
Balance stated in Previous year
649,409,327
464,352,482
563,398,580
Adjustment
-
(2,869,382)
-
Restated balance of 2013 for comparison as on 31.12.2014
649,409,327
461,483,100
563,398,580
NCCB Securities and Financial Services Limited
33,170,531
30,755,551
42,856,352
NCCB Capital Limited
21,572
2,874,382
3,820,880
NCCB Exchange (UK) Limited
14,865,870
13,631,579
10,442,214
Restated balance of 2013 for comparison as on 31.12.2014
697,467,300
508,744,612
620,518,026
Cash and cash equivalents 41
Balance stated in Previous year
11,024,328,718
8,532,347,743
9,034,009,417
Adjustment for Off-shore banking unit
-
(14,890,342)
-
Restated balance of 2013 for comparison as on 31.12.2014
11,024,328,718
8,517,457,401
9,034,009,417
Consolidated cash and cash equivalents 41(a)
NCC Bank Limited:
Balance stated in Previous year
11,024,328,718
8,532,347,743
9,034,009,417
Adjustment for Off-shore banking unit
-
(14,890,342)
-
Restated balance of 2013 for comparison as on 31.12.2014
11,024,328,718
8,517,457,401
9,034,009,417
NCCB Securities and Financial Services Limited
3,347,304
13,969,598
923,956
44
NCCB Capital Limited
-
-
-
NCCB Exchange (UK) Limited
3,465,575
179,280
2,788,845
Restated balance of 2013 for comparison as on 31.12.2014
11,031,141,597
8,531,606,279
9,037,722,218
3 Audit committee
The Audit committee of the Board of Directors of the Bank formed in accordance with Bangladesh Bank‟s
BRPD circular No. 11 dated 27 October 2013 and SEC Notification no. SEC/CMRRCD/2006-158/129/Admin/44 dated August 7, 2012 on corporate Governance, the current committee is constituted
with the following members of the Board as on 31 December 2014:
Sl.
No.
Name Status with the Bank
Status with
the
committee
Educational qualifications
1.
2. 3.
4.
5.
Mr. Md. Amirul Islam, FCS, FCA
Mr. A.S.M. Main Uddin Monem Mr. Md. Abul Bashar
Mr. Khairul Alam Chaklader
Mr. K. A. M. Haroon
Independent Director
Vice Chairman Director
Director
Independent Director
Chairman
Member Member
Member
Member
FCS, FCA
MBA (USA) B.S. (MIS)
B.Com.
B.Sc.Engg.
* Director at SL. No. 4 vacated his directorship on 29.03.2015.
During the period, the Audit committee of the Board conducted 17 (Seventeen) meetings in which the important issues were discussed/reviewed. (Refer to the report of the Board Audit committee for details).
4 General
4.1 Number of employees
Number of employees at December 31, 2014 was 2266; (2013:2192) who were in receipt of
remuneration for that year which in the aggregate was not less than Tk. 36,000 per annum and those employed for a part of that year who were also in receipt of remuneration of not less than Tk.3,000 per
Month.
4.2 Figures appearing in these Financial Statements have been rounded off to the nearest Taka.
Previous year‟s figures, whenever considered necessary, have been rearranged and restated in order to
conform to current year‟s presentation.
Stock of Travelers‟ Cheques, Shanchaya patras are not reflected as Off-balance Sheet items in the
Financial Statements.
31.12.2014 31.12.2013
Taka Taka
5 Cash
Cash in hand ( Including foreign currencies)
Conventional banking
Local currency 1,150,806,056 1,239,628,662
Foreign Currencies 22,678,026 16,849,190
1,173,484,082 1,256,477,852
Off-shore banking unit - -
1,173,484,082 1,256,477,852
Balance with Bangladesh Bank and its agent bank (s)
Conventional banking
Local currency 7,044,521,827 6,203,540,036
Foreign currencies 136,572,051 229,620,281
7,181,093,878 6,433,160,317
Sonali Bank Ltd. as agent of Bangladesh Bank ( Local Currency )-note 5.1 257,582,948 185,624,452
7,438,676,826 6,618,784,769
Off-shore banking unit - -
7,438,676,826 6,618,784,769
8,612,160,908 7,875,262,621
5.1 Sonali Bank Ltd. as agent of Bangladesh Bank ( Local Currency )
Cox's bazar branch 19,999,018 11,721,317
Feni branch 27,084,519 41,919,351
Laxmipur branch 23,019,074 18,276,848
Moulvibazar branch 7,932,546 7,630,611
Jessore branch 647,363 25,182,846
Chaumuhani branch 121,334 1,159,369
Madaripur branch 6,529,721 319,285
Chakaria branch 1,948,378 1,368,419
Comilla branch 1,127,549 7,241,496
Joydevpur branch 80,841 463,866
Mymensingh branch 47,331,431 22,904,061
Tangail branch 36,692,445 3,691,803
Naogaon branch 13,753,606 5,926,839
Kushtia branch 10,225,381 6,351,906
Narayangonj branch 2,404,313 1,715,327
Brahmanbaria branch 20,391,300 18,047,431
Narsingdi branch 13,543,097 4,853,378
Maijdee branch 1,683,444 755,275
Dinajpur branch 23,067,588 6,095,024
257,582,948 185,624,452
5.2 Cash Reserve Requirement (CRR) and Statutory Liquidity Ratio (SLR)
Cash Reserve Requirement (CRR) and Statutory Liquidity Ratio (SLR) have been calculated and maintained in
accordance with the Section 33 of the Banking Companies Act 1991, DOS circular no.01 dated 19 January 2014 and
MPD circular no. 01 dated 23 June 2014. The cash reserve requirement of the Bank's based on time and demand
liabilities @ of 6.50% has been calculated and maintained with Bangladesh Bank in current account and 13%
Statutory Liquidity ratio on same liabilities has also been maintained in the form of treasury bills, treasury bonds and
debenture including FC balance with Bangladesh Bank. Both the reserves maintained by the Bank are in excess of the
statutory requirements as shown below:
45
31.12.2014 31.12.2013
Taka Taka
5.3 Cash Reserve Requirement (CRR):
Required reserve 7,005,473,940 5,967,664,070
Actual reserve held 7,044,521,827 6,203,540,036
Surplus/ (deficit) 39,047,887 235,875,966
5.4 Statutory Liquidity Ratio ( SLR):
Required reserve 14,010,947,890 12,929,938,810
Actual reserve held 22,307,283,383 19,543,515,545
Surplus/ (deficit) 8,296,335,493 6,613,576,735
Total required reserve 21,016,421,830 18,897,602,880
Actual reserve held 29,351,805,210 25,747,055,581
Total surplus 8,335,383,380 6,849,452,701
5(a) Consolidated cash
Cash in hand
NCC Bank Limited (Note-5 ) 1,173,484,082 1,256,477,852
NCCB Securities and Financial Services Limited 631 18
NCCB Capital Limited - -
NCCB Exchange (UK) Limited - -
1,173,484,713 1,256,477,870
Balance with Bangladesh Bank and its agent bank(s)
NCC Bank Limited (Note-5 ) 7,438,676,826 6,618,784,769
NCCB Securities and Financial Services Limited - -
NCCB Capital Limited - -
NCCB Exchange (UK) Limited - -
7,438,676,826 6,618,784,769
8,612,161,539 7,875,262,639
6 Balance with other banks and financial institutions :
In Bangladesh (Note -6.1 )
Conventional banking 468,186,926 328,019,533
Off-shore banking unit - -
468,186,926 328,019,533
Outside Bangladesh ( Note-6.2)
Conventional banking 1,934,158,707 328,738,073
Off-shore banking unit 5,235,777 -
1,939,394,484 328,738,073
2,407,581,410 656,757,606
The Cash Reserve Requirement and Statutory Liquidity Ratio have been calculated and maintained for the year 2013
in accordance with the Section 33 of the Bank Companies Act 1991 and MPD circular nos.05 dated 01 December 2010.
46
31.12.2014 31.12.2013
Taka Taka
6.1 In Bangladesh
Conventional banking
Current accounts withSonali Bank Limited 15,350,418 23,653,048 IFIC Bank Limited 2,000 2,000 Islami Bank Bangladesh Limited 275,078 2,340,773 Commercial Bank of Ceylon 1,077,500 1,077,500 Trust Bank Limited 385,049 2,741,333 Standard Chartered Bank 4,013,941 3,423,939 Dutch Bangla Bank Limited 6,041,495 2,253,392 Rupali Bank Limited 8,917,826 28,895,140 EXIM Bank Limited 2,538,965 2,500,000 First Security Islami Bank Limited 553,420 500,000 Shahjalal Islami Bank Limited 538,947 500,000 Bangladesh Commerce Bank Limited 1,076,112 1,000,000 Social Islami Bank Limited 539,446 500,000 BRAC Bank Limited 27,061,086 6,477,689
68,371,283 75,864,814 Special notice deposit accounts withJanata Bank Limited 14,009,204 14,732,484 Dutch Bangla Bank Limited 27,913 27,913 United Commercial Bank Limited 542,294 516,896
14,579,411 15,277,293 Fixed deposit accounts withICB Islamic Bank Limited 19,073,390 19,377,426 BD Industrial Finance Co Limited - 17,500,000 Bank Asia Ltd. 366,162,842 - National Bank of Pakistan - 200,000,000
385,236,232 236,877,426 468,186,926 328,019,533
Off-shore banking unit - - 468,186,926 328,019,533
6.2 Outside Bangladesh (NOSTRO Accounts)
Conventional bankingCurrent accounts (non-interest bearing) with:
Bank of Tokyo Mitsubishi, Japan 2,060,279 1,614,524 HSBC BANK N.Y. - 2,974,775
Standard Chartered Bank, Tokyo 2,153,026 2,157,615
City Bank NA 99,873,558 - BANCO ITAU - 913,987 United Bank Limited, Karachi 2,795,156 5,230,345 AXIS Bank Kolkata 4,908,157 4,628,378 Nepal Bangladesh Bank, Nepal 14,740,754 10,732,076 Sonali Bank Limited, UK 574,337 -
Bank of Bhutan, Phuentsholing 443,660 1,924,771 Habib Metropoliton Bank 7,780,481 4,773,999
Uni Credito Italiano Spa 63,558,237 2,284,506
Commerz Bank AG 6,307,281 1,280,394
UBAF,JAPAN - 305,473
Standard Chartered Bank, London 1,428,422,291 - Nova Scotia, Canada - 1,840,330 Sonali Bank Limited, Kolkata - 26,905,624
American Express Bank, Colombo 1,301,812 3,087,599 Mashreq Bank, Kolkata - 85,639,430
Standard Chartered Bank, Singapore 6,691,518 473,157
Standard Chartered Bank, Kolkata - 34,419,691 Sonali Bank Limited, London 64,638,265 - WESTPAC BC 1,867,458 862,083
Standard Chartered Bank, London 7,275,665 - 1,715,391,935 192,048,757
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Current accounts (interest bearing) with:
Standard Chartered Bank, London - 12,877,006
Citi Bank N.A. - 123,812,310
Standard Chartered Bank , New York 218,766,772 -
218,766,772 136,689,316
1,934,158,707 328,738,073
Off-shore banking unit 5,235,777 -
(Annexure 'A' may kindly be seen for details) 1,939,394,484 328,738,073
6.3
Payable on demand 2,373,928,609 404,602,887
Up to one month 14,579,411 215,277,293
Over one month but not more than three months - -
Over three months but not more than six months - 17,500,000
Over six months but not more than one year - -
Over one year but not more than five years 19,073,390 19,377,426
Over five years - -
2,407,581,410 656,757,606
6(a) Consolidated balance with other banks and financial institutions
In Bangladesh
NCC Bank Limited (Note-6.1 ) 468,186,926 328,019,533
NCCB Securities and Financial Services Limited 9,444,174 13,969,580
NCCB Capital Limited 271,032,940 271,044,320
NCCB Exchange (UK) Limited - -
748,664,040 613,033,433
Less: Inter company transactions 277,130,441 271,345,963
471,533,599 341,687,470
Outside Bangladesh
NCC Bank Limited (Note-6.2 ) 1,939,394,484 328,738,073
NCCB Securities and Financial Services Limited - -
NCCB Capital Limited - -
NCCB Exchange (UK) Limited 3,465,575 179,280
1,942,860,059 328,917,353
2,414,393,658 670,604,823
7 Money at call and short notice :
Banking company - -
Non-banking financial institutions - -
- -
8 Investments :
Government securities-Note 8.1 25,241,572,158 18,352,194,148
Other investments-Note 8.2 1,327,089,604 1,556,127,854
26,568,661,762 19,908,322,002
8.1 Government securities:
Conventional banking
Treasury bills:
91 days treasury bills 1,209,850,791 -
182 days treasury bills 606,772,726 -
364 days treasury bills 323,101,883 -
2,139,725,400 -
Bangladesh Bank Bill - 467,254,260
Balance with other banks and financial institutions (according to
remaining maturity grouping) payable :
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Treasury bonds:
2 years treasury bonds 246,942,152 -
5 years treasury bonds 8,949,517,929 8,079,658,638
10 years treasury bonds 6,720,207,098 5,010,441,045
15 years treasury bonds 3,328,561,411 2,911,666,012
20 years treasury bonds 3,852,031,768 1,878,359,593
23,097,260,358 17,880,125,288
Prize bonds 4,586,400 4,814,600
25,241,572,158 18,352,194,148
Off-shore banking unit - -
25,241,572,158 18,352,194,148
8.2 Other investments:
Conventional banking:
ACI zero coupon bonds 12,139,999 15,559,999
Dhaka bank subordinated bond 50,000,000 50,000,000
National bank subordinated bond 32,000,000 50,000,000
Mutual Trust Bank subordinated bond 40,000,000 40,000,000
ACI commercial paper - 100,000,000
Beximco pharmaceuticals (Debenture ) 60,570 60,570
Investment in shares (Note 8.6) 1,688,266,871 1,741,642,343
Less: Provision for investment fluctuation in shares (Note-8.3) (495,377,836) (441,135,058)
1,192,889,035 1,300,507,285
1,327,089,604 1,556,127,854
Off-shore banking unit - -
1,327,089,604 1,556,127,854
8.3 Provision for investment fluctuation in shares
Opening balance 441,135,058 264,220,926
Add: Provision made during the year 54,242,778 176,914,132
Less: amount adjusted during the year - -
Closing Balance 495,377,836 441,135,058
8.4 Investment classified as per Bangladesh Bank circular:
Held for Trading (HFT) 4,517,278,274 504,054,236
Held to Maturity (HTM) 20,719,707,484 17,843,325,312
Other securities 1,331,676,004 1,560,943,054
26,568,661,762 19,908,322,602
8.5 Maturity grouping of investments
On demand 1,156,740,016 1,242,137,917
Up to one month 851,462,299 567,254,285
Over one month but not more than three months 826,915,409 -
Over three months but not more than six months 594,306,545 -
Over six months but not more than one year 1,682,123,120 2,239,904,512
Over one year but not more than five years 10,267,604,816 6,058,558,638
Over five years 11,189,509,557 9,800,466,650
26,568,661,762 19,908,322,002
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8.6 Investment in shares:
Quoted:
AB Bank Limited 6,067,093 6,067,093
Agrani Insurance Co. Limited 10,016,563 10,016,563
Al-Arafah Islami Bank Limited 73,613,875 73,613,875
Asia Insurance Limited 6,999,050 6,999,050
Asia Pacific General Insurance Limited 30,800,366 32,893,842
Bangladesh Auto Cars Limited 223,907 223,907
Bangladesh General Insurance Co. 5,620,658 5,928,158
Bank Asia Limited 25,382,039 25,382,039
Bata Shoe Co. (BD) Limited 3,008,892 3,008,892
Bay Leasing & Investment Limited 71,047,947 71,047,947
Beximco Limited 6,685,800 6,685,800
Beximco Pharma Limited 25,200 25,200
Bangladesh Submarine Cable Company Limited 26,650,837 9,336,160
BSRM Steels Limited 9,225,121 19,179,441
Confidence Cement Limited 5,298,842 -
Dacca Dyeing & Manufacturing Co. Limited 6,570,400 6,570,400
Dhaka Electric Supply Company Limited 74,738,248 68,644,702
Eagle Star Textile Mills Limited 4,227,951 4,227,951
Eastern Bank Limited 8,994,717 3,973,182
Eastern Cables Limited 277,852 277,852
Eastland Insurance Limited 11,650 11,650
Enboy Textiles Limited 39,678 39,678
EXIM Bank Limited 55,150 55,150
Fareast Life Insurance Co. Limited 7,078,425 7,078,425
Family Textile (BD) Limited 1,572,746 -
First Lease Finance & Investment Limited 1,601,860 1,601,860
GBP Power Limited 4,324,100 4,324,100
GPH Ispat Limited 8,076,250 8,076,250
Grameenphone Limited 11,564,424 45,979,524
Green Delta Insurance Co. 16,685,130 10,240,710
Green Delta Mutual Fund 24,036,815 24,036,815
GSP Finance Company (Bangladesh) Limited - 271,000
ICB Islamic Bank Limited 5,490,645 5,490,645
IDLC Finance Limited 27,466,708 27,466,708
Islami Bank Bangladesh Limited 56,132 56,132
Jamuna Bank Limited 19,670,799 19,670,799
Jamuna Oil Company Limited 38,435,918 33,214,872
Karnaphuly Insurance Limited 5,763,830 5,763,830
Khulna Power Co. Limited 5,698,282 18,006,860
Lafarge Surma Cement 4,640,671 8,159,200
Lanka Bangla Finance Limited 86,762,006 114,479,644
Maksons Spinning Mills Limited 8,706,149 8,706,149
MBL 1st Mutual Fund 10,000,000 10,000,000
Meghna Life Insurance Co. Limited - 2,189,960
Meghna Petroleum Limited 16,994,756 14,848,067
Mercantile Bank Limited 4,168,547 2,025,047
Mercantile Insurance Co. Limited 19,424,350 19,424,350
Balance Carried Forward 703,800,379 745,319,479
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Balance Brought Forward 703,800,379 745,319,479
MI Cement Factory Limited 302,231 302,231
MJL Bangladesh Limited 6,360,450 6,360,450
National Bank Limited 22,385,193 22,385,193
Navana CNG Limited 61,467,196 62,912,991
NCCBL Mutual Fund-1 50,000,000 50,000,000
NCCBL Mutual Fund-1 150,000,000 150,000,000
NLI 1st Mutual Fund 30,000,000 30,000,000
Olympic Industries Limited 511,650 1,972,150
Padma Oil Company Limited 9,992,625 -
Peoples Leasing and Financial Services Limited 48,205,403 48,205,403
Phoenix Finance and Investment Limited 6,140,550 6,140,550
Power Grid Co. of Bangladesh Limited 2,004,762 2,004,762
Premier Leasing & Finance Limited 13,236,181 13,236,181
Prime Bank Limited 11,223 11,223
Prime Islami Life Insurance Company Limited 355,508 355,508
Prime Textile Spinning Mills Limited 300,000 300,000
Pubali Bank Limited 31,232,515 31,232,515
R.N.Spinning Mills Limited 52,019,169 54,891,306
RAK Ceramics (Bangladesh) Limited 3,046 3,046
Rupali Insurance Limited 9,847,950 9,847,950
South East Bank 1st Mutual Fund 30,000,000 30,000,000
Shahjalal Islami Bank Limited 18,004,087 17,038,037
Saiham Textile Mills Limited 1,193,306 2,364,930
South East Bank Limited 42,723,519 49,122,975
Square Pharmaceuticals Limited 44,466,343 17,392,503
Square Textiles Limited 36,160,385 71,409,035
Standard Bank Limited 114,448 114,448
Summit Alliance Port Limited 10,515,325 10,515,325
Summit Power Limited 64,153,966 67,900,556
Tallu Spining Mills Limited 365,191 365,191
Titas Gas Transmission & Distribution Co. Limited 93,103,425 83,992,560
Trust Bank 1st. Mutual Fund 2,000,000 2,000,000
Union Capital Limited 2,653,600 2,653,600
Unique Hotel & Resorts Limited 33,649,778 33,649,778
United Airways (BD) Limited 34,216,631 34,216,631
United Commercial Bank Limited 20,405,951 19,560,951
Uttara Bank Limited 8,120,373 8,120,373
1,640,022,359 1,685,897,831
Un-Quoted:
Central Depository Bangladesh Limited (CDBL) 3,138,890 3,138,890
Dhaka Vegetable Oil Industries Limited 7,448,523 7,448,523
Bangladesh Rating Agency Limited 4,165,900 4,165,900
SWIFT 991,199 991,199
MSF Asset Management Company 2,000,000 2,000,000
Summit Purbanchal Power Company Limited 7,500,000 12,000,000
Summit Uttaranchal Power Company Limited 5,000,000 8,000,000
Venture Investment Partner Bangladesh Limited 18,000,000 18,000,000
48,244,512 55,744,512 (Annexure 'B' may kindly be seen for details) 1,688,266,871 1,741,642,343
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Government securitiesNCC Bank Limited- Note-8.1 25,241,572,158 18,352,194,148 NCCB Securities and Financial Services Limited - - NCCB Capital Limited - - NCCB Exchange (UK) Limited - -
25,241,572,158 18,352,194,148 Other investmentsNCC Bank Limited-Note-8.2 1,327,089,604 1,556,127,854 NCCB Securities and Financial Services Limited 28,843,298 25,477,395 NCCB Capital Limited - - NCCB Exchange (UK) Limited - -
1,355,932,902 1,581,605,249 26,597,505,060 19,933,799,397
9 Loans and AdvancesLoans, Cash Credits, Overdrafts etc.(Note-9.1) 88,739,476,147 86,363,661,614 Bills Purchased and Discounted (Note-9.2) 2,181,295,881 1,803,544,217
90,920,772,028 88,167,205,831 9.1 Loans, cash credits, overdrafts etc.
Inside Bangladesh:
Conventional banking:
Overdraft 16,856,594,303 15,507,242,389
Cash credit 16,143,152,430 16,225,773,050
Loan - general 2,168,759,274 3,060,800,708
Transport loan 319,361,289 366,707,965
House building loan 1,395,715,516 1,471,559,673
Loan against Trust Receipt (LTR) 13,926,443,337 16,081,812,358
Loan against Imported Merchandise (LIM) 149,735,453 100,004,676
Loan against Investment 430 430
Loan against packing credit 139,474,580 153,443,756
Project loan 159,115,208 184,646,908
Demand loan 193,648,228 10
Lease finance 1,332,835,683 1,259,195,964
Payment against document 503,349,142 477,250,080
Consumer finance scheme 586,100 614,456
Housing loan under B.Bank refinance scheme 25,162,991 31,747,840
Staff loan 657,849,422 707,992,809
Small business loan 786,459,743 787,702,881
House renovation loan 14,418,549 25,244,613
Personal loan scheme 9,294,360 7,032,425
Term loan (small, medium & large) 18,350,059,110 16,479,131,093
Time loan 6,171,667,657 4,808,010,118
Agri credit 1,392,328,115 1,657,391,958
Festival loan 43,601,146 51,597,661
Special housing loan 1,057,326,355 972,699,095
Credit card 474,270,325 459,895,531
Forced loan 1,876,574,248 2,053,298,001
Short term loan 4,427,728,108 3,326,706,628
Retail loan 138,480,912 102,986,154
NCCB- Garments wear & foot wear cluster 23,570,921 2,645,109
Education loan scheme 1,913,212 527,275
88,739,476,147 86,363,661,614 Off-shore banking unit - -
88,739,476,147 86,363,661,614 Outside Bangladesh: - -
Conventional banking: - - Off-shore banking unit - -
88,739,476,147 86,363,661,614
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9.2 Bills purchased and discounted
Inside Bangladesh:
Conventional Banking
Inland bills purchased 83,656 36,828,249
Local documentary bills purchased 1,749,301,750 1,682,586,160
1,749,385,406 1,719,414,409
Off-shore banking unit - -
1,749,385,406 1,719,414,409
Outside Bangladesh:
Conventional Banking
Foreign bills purchased - -
Foreign documentary bills purchased 61,164,694 63,433,308
61,164,694 63,433,308
Off-shore banking unit 370,745,781 20,696,500
431,910,475 84,129,808
2,181,295,881 1,803,544,217
90,920,772,028 88,167,205,831
9.3 Net loans and advances
Gross Loans and Advances 90,920,772,028 88,167,205,831
Less: Provision for loans and advances 3,426,389,345 3,331,560,804
Interest suspense 1,488,795,712 979,431,588
4,915,185,057 4,310,992,392
86,005,586,971 83,856,213,439
9.4
Repayable on demand 2,070,222,476 2,053,298,011
Up to one month 13,440,429,569 10,424,818,211
Over one month but not more than three months 19,536,439,633 17,928,123,991
Over three months but less than one year 26,781,203,143 29,462,140,035
Over one year but less than five years 17,816,400,961 18,516,500,962
Above five years 11,276,076,246 9,782,324,621
90,920,772,028 88,167,205,831
9.5
In Bangladesh:
Loans 55,739,729,414 54,630,646,175
Cash credit 16,143,152,430 16,225,773,050
Overdraft 16,856,594,303 15,507,242,389
Bills Purchased & Discounted 1,749,385,406 1,719,414,409
90,488,861,553 88,083,076,023
Outside Bangladesh (Bills purchased & discounted) 431,910,475 84,129,808
90,920,772,028 88,167,205,831
9.6
135,773,000 160,208,231
21,201,738 19,035,000
Residual maturity grouping of loans and advances including bills
purchased and discounted
Loans and advances on the basis of significant concentration
including bills purchased and discounted classified into the
following broad categories:
II) Advances to Chief Executive and other Senior executives of the Bank
bills purchased and discounted
Loans and advances including bills purchased and
discounted classified into the following broad categories
I) Advances to allied concerns of Directors of the Bank
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III) Advances to customers' group-wise clients
a) Agricultural loans 1,311,652,055 1,737,300,456
b) Export financing 4,584,323,900 3,985,211,487
c) Import financing 18,966,108,325 21,804,030,706
d) Transport and communication 960,070,757 1,434,600,042
a) Commercial lending 15,370,903,296 15,762,102,080
c) House building loan 4,950,886,449 7,658,020,309
f) Staff Loans other than Chief executive and other senior executives 657,849,422 688,958,281
g) Others including bills purchased and discount 12,248,697,477 8,833,032,687
59,050,491,681 61,903,256,048
IV) Industrial loans (including working capital) 31,713,305,609 26,084,706,552
90,920,772,028 88,167,205,831
9.7
11 8
26,237,400,000 17,576,100,000
- -
Measures taken for recovery - -
(Annexure 'C' may kindly be seen for details)
9.8 Loans and advances on the basis of geographical location wise:
Urban
54,772,092,540 54,295,596,688
25,255,747,300 23,861,297,509
1,105,681,646 912,478,793
733,341,257 604,299,712
640,775,049 601,873,002
2,235,019,027 2,399,856,953
199,067,389 282,458,707
84,941,724,208 82,957,861,364
Rural
1,743,634,308 1,385,147,124
2,887,408,106 2,752,459,319
141,171,860 159,403,313
494,461,299 456,987,326
622,777,056 414,876,029
Khulna Division 89,595,191 40,471,356
5,979,047,820 5,209,344,467
90,920,772,028 88,167,205,831
9.9 Classification of loans and advances
Unclassified standard (including staff loans) 81,850,771,101 82,432,254,648
Unclassified special mention account 2,334,484,568 872,537,444
Sub-standard 442,703,023 167,996,705
Doubtful 678,180,091 504,858,393
Bad/Loss 5,614,633,245 4,189,558,641
90,920,772,028 88,167,205,831
Dhaka Division
Amount of classified advances
Number of clients with outstanding amount and classified loans
and advances exceeding 10% of total capital of the Bank.
Amount of outstanding advances
Number of the clients
Rajshahi Division
Rangpur Division
Chittagong Division
Dhaka Division
Chittagong Division
Sylhet Division
Khulna Division
Barisal Division
Rajshahi Division
Rangpur Division
Sylhet Division
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9.10 Particulars of required provision for loans and Advances
Status Base for provision Rate (%)
A. General Provision
Conventional banking
Un-Classified Loans and Advances 80,822,175,897 701,866,630 659,697,070
Special Mention Account 2,334,484,568 19,370,814 8,469,047
83,156,660,465 721,237,444 668,166,117
Off-shore banking unit 370,745,781 3,707,458 206,965
83,527,406,246 724,944,902 668,373,082
Base for provision Rate (%)
B. Specific provision
Conventional banking
Sub-standard 254,754,887 50,950,978 19,232,209
Doubtful 376,194,832 188,097,416 134,627,065
Bad/ Loss 2,466,103,507 2,466,103,507 2,509,535,413
3,097,053,226 2,705,151,901 2,663,394,687
Off-shore banking unit - - - -
Specific provision
Sub-standard - - -
Doubtful - - -
Bad/ Loss - - - - - -
3,097,053,226 2,705,151,901 2,663,394,687
Required provision for loans and advances 3,430,096,803 3,331,767,769
Total provision maintained (note 14.4 ) 3,430,096,803 3,331,560,804
Excess /(short) provision at 31 December 2014 * - -
* Provision was maintained as per instruction of Bangladesh Bank.
Particulars of required provision on off -balance sheet Exposure
Conventional Banking
Rate ( 1%)
Acceptance and Endorsements 117,717,299 123,507,691
Letter of guarantee 113,951,231 66,719,174
Letter of credit 108,900,496 84,297,139
Others 4,646,674 91,298
345,215,700 274,615,302
Off-shore banking unit - -
Required provision on off -balance sheet Exposure 345,215,700 274,615,302
Total provision maintained (note 14.6) 345,215,700 274,615,302
Excess/ (short) provision - -
9.11 Particulars of loans and advances
i) 66,768,977,092 63,501,572,610
ii) 7,638,635,352 14,642,682,833
iii) 16,513,159,584 10,022,950,388
iv) - -
90,920,772,028 88,167,205,831
* v) 657,849,422 707,992,809
* Amount represents loans to employees of the Bank only.
* General provision is kept @ 1% on general loans and Advances and 0.25% on small enterprise financing, 2% on
certain other types of lending and 5% on consumer financing.
Loans considered good against which the bank holds no other security
other than the debtor's personal guarantee
Loans considered good and secured by the personal security of one or
more parties in addition to the personal guarantee of the debtors
Loans considered doubtful or bad not provided for
Base for provision
Debts due by directors or officers of the bank or any of them either
severally or jointly with any other persons
10,890,049,609
464,667,369
Loans considered good in respect of which the bank is fully secured
11,771,729,896
11,395,123,103
100
20
* Various
do
100
1.00%
20
50
50
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vi)
135,773,000 160,208,231
vii)
657,849,422 707,992,809
viii)
135,773,000 160,208,231
ix) Due from banking companies - -
x) 6,735,516,359 4,862,413,739
a) Increase/(decrease) of provision (specific) during the year 41,757,214 958,257,787
b) Amount of provision kept against the amount classified 2,466,103,507 2,497,682,413
as bad/loss at the Balance Sheet preparing date.
c) Amount of interest charged in interest suspense account 1,488,795,712 979,431,588
xi) Cumulative amount of written off debt
Opening balance as on 1 January 2,887,200,735 2,682,340,810
Add: Amount of debt written off during the year 997,786,941 204,859,925
Closing balance as on 31 December 3,884,987,676 2,887,200,735
xii) Amount of written off debt against which law suit has
been filed for its recovery during the year 997,786,941 204,859,925
9.12 Outstanding bad & loss loans to be written off
9.13 Bills purchased and discounted:
a) Payable:
In Bangladesh 1,749,385,406 1,719,414,409
Outside Bangladesh 431,910,475 84,129,808
2,181,295,881 1,803,544,217
Maximum total amount of advances, including temporary advances made
at any time during the year to directors or managers or officers of the
bank or any of them either severally or jointly with any other persons.
Amount of classified loans for which interest/profit not credited to income
Debts due by companies or firms in which the directors of the Bank are
interested as directors, partners or managing agent or in case of private
companies as members
Maximum total amount of advances, including temporary advances,
granted during the year to the companies or firms in which the directors
of the bank are interested as directors, partners or managing agents or,
in case of private companies as members.
Bangladesh Bank issued a circular no.02 dated 13 January 2003 instructing all the banks in the country to write off
bad & loss loans which have passed five years after its classification and legal actions have been taken against all
those default borrowers with an immediate effect. In compliance with the circular, the Bank formed a Debt Collection
Unit in its Head Office from where monitoring has been made accordingly. During the year, the Bank allowed write off
amounting to Tk.99,77,86,941/- against which legal actions have been lying with the money suit court. In this
connection, branches have been maintained a separate ledger for all individual cases. The debt collection unit will
follow-up the realization of such debts in future also and time to time a progress report to be given to the
management by the branches.
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b) Bills purchased & discounted on the basis of the residual maturity grouping:
Payable:
Within one month 572,113,821 431,180,791
Over one month but less than three months 513,501,843 659,640,000
Over three months but less than six months 303,678,000 691,232,926
Over six months 792,002,217 21,490,500
2,181,295,881 1,803,544,217
9 (a) Consolidated loans and advances
Loans, cash credits, overdrafts etc.
NCC Bank Limited (Note-9.1) 88,739,476,147 86,363,661,614
NCCB Securities and Financial Services Limited. 4,607,372,304 4,514,072,239
NCCB Capital Limited - - NCCB Exchange (UK) Limited - -
93,346,848,451 90,877,733,853
Less : Inter company transactions 1,761,631,457 1,890,840,821
91,585,216,994 88,986,893,032
Bills purchased and discounted
NCC Bank Limited (Note-9.2) 2,181,295,881 1,803,544,217
NCCB Securities and Financial Services Limited. - -
NCCB Capital Limited - - NCCB Exchange (UK) Limited - -
2,181,295,881 1,803,544,217
Less : Inter company transactions - -
2,181,295,881 1,803,544,217
93,766,512,875 90,790,437,249
10 Fixed assets including premises, furniture and fixtures
Conventional banking (Note-10.1) 2,573,252,105 1,736,637,982
Off-shore banking unit (Note-10.2) - -
2,573,252,105 1,736,637,982
10.1 Fixed assets including premises, furniture and fixtures
Conventional banking
Cost/valuation
Lands and apartments 451,906,660 451,906,660
Buildings/apartments/structure 1,306,341,148 736,216,459
Furniture and fixtures 499,243,637 428,887,682
Machinery and equipment 1,035,557,241 710,488,752
Vehicles 98,144,716 95,750,888
Total Cost / valuation 3,391,193,402 2,423,250,441
Less: Accumulated depreciation 817,941,297 686,612,459
Net book value at the end of the year 2,573,252,105 1,736,637,982
(Annexure 'D' may kindly be seen for details)
10.2 Off-shore banking unit - -
10(a) Consolidated fixed assets including premises, furniture and fixture
NCC Bank Limited (Note-10) 2,573,252,105 1,736,637,982
NCCB Securities and Financial Services Limited 16,590,351 18,849,835
NCCB Capital Limited - -
NCCB Exchange (UK) Limited 1,873,195 3,577,999
2,591,715,651 1,759,065,816
11 Other assets
Conventional banking (Note-11.1) 4,066,540,264 5,698,189,725
Off-shore banking unit 10,555,062 320,301
4,077,095,326 5,698,510,026 57
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11.1 Conventional banking
Income generating other assets
Investment in subsidiaries
In Bangladesh
NCCB Securities and Financial Services Limited 1,999,999,900 1,999,999,900
NCCB Capital Limited 249,999,900 249,999,900
2,249,999,800 2,249,999,800
Outside Bangladesh
NCCB Exchange (UK) Limited 27,878,908 27,878,908
2,277,878,708 2,277,878,708
Non-income generating other assets
Stationery in hand 9,483,941 11,820,590
Stamps in hand 3,170,134 2,715,071
Security deposits 4,825,320 2,280,080
Advance against rent 146,136,367 158,292,633
Commission receivable 7,656,957 7,944,265
Software 52,168,785 66,230,913
Discount receivable - 10,765,954
Prepaid expenses 8,500 93,605
ATM adjustment 162,217 168,757
Visa card SBL 1,855,170 1,649,558
Building construction 3,000,000 715,308,524
Receivable against sale proceeds of shares 18,469,774 3,611,087
Suspense account (Note 11.2 ) 59,416,347 22,161,570
Interest receivable ( Note 11.3 ) 587,393,866 407,227,663
Dividend receivable (Note-11.4) 6,805,328 2,628,288
Advance corporate tax (Note-11.5) 723,882,869 1,880,443,430
Others ( Note 11.6 ) 164,225,981 126,969,029
1,788,661,556 3,420,311,017
4,066,540,264 5,698,189,725
11.2 Suspense account
Encashment sanchaypatra awaiting realization 43,356,984 7,538,304
Cash remittance 16,000,000 14,500,000
DD paid without advice 59,363 68,757
Clearing adjustment - 54,509
59,416,347 22,161,570
11.3 Interest receivable :
On loans and advances - -
On treasury bills/bonds 583,488,803 406,297,246
On bank balances/financial institutions/Others 3,905,063 930,417
587,393,866 407,227,663
11.4 Dividend receivable
Dividend Receivable from NCCB Securities and Financial Services Limited - -
Dividend receivable from others listed companies 6,805,328 2,628,288
6,805,328 2,628,288
11.5 Advance corporate tax
Advance tax at source on treasury bills/ bonds 421,023,052 112,009
Advance tax at source on dividend 12,672,950 51,458,177
Advance tax at source on bank interest 2,476,046 14,160,956
Advance income tax deposited by Bank 279,880,646 1,797,562,727
5% Advance income tax paid on L/C commission 7,830,175 17,149,561
723,882,869 1,880,443,430 58
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11.6 Others
Advance against TA/DA 489,481 355,647
Legal expenses 1,286,000 1,415,229
Kushiara Financial Services Ltd.-London 45,000 -
Money Gram 9,991,329 5,933,022
Proposed branches expenses 21,719,616 -
Prefunding to TMSS - 2,048,984
Transmit international Inc. USA 1,904 3,391,490
UAE exchange 336,678 436,970
Sundry debtors 45,310,429 43,654,805
Trans fast remittance LLC 429,723 1,127,368
Protested bill 15,737,491 11,890,306
Prefunding to foreign remittance - 7,325,579
Prefunding to Ansar -VDP 9,569,019 9,954,290
Xpress Money 3,184,648 1,523,243
Al-Fardan Exchange Co.L.L.C 1,979,784 3,190,014
Habib Xpress MT 100 80,049
Placid Express 868,679 3,539,729
Postage/stamp - 20,042
Samso's Express Money Transfer 15,000 -
Continental Exchange Solutions (Rja) 379,977 50,447
Wall Street 380,389 79,847
First Solution U.K. - 76,045
Kay Maks International - 33,960
Al Zaman Exchange - 38,000
IME (M) SDN.BHD. 4,239,532 2,572,127
Prefunding to SME Noria 15,275 -
NCCB sure cash 300 300
Advance for booking money agt.DSE Tower 850,000 850,000
Western Union 4,712,920 10,238,370
NCCB Exchange (UK) Limited 26,701,978 4,406,314
NEC Money Transfer Spain 11,693,321 669,053
Arab National Bank 441,595 95,430
National Exchange Company S.r.l 813,121 6,393,195
Sigue Global Services Ltd 2,268,390 3,849,615
Consolidated CMS Br.POS Trx. 563,500 1,423,500
Others 200,802 306,059 164,225,981 126,969,029
11(a) Consolidated other Assets
NCC Bank Limited (Note-11) 4,077,095,326 5,698,510,026 Less: Investment in NCCB Securities and Financial Services Limited (note-11.1) (1,999,999,900) (1,999,999,900)Less: Investment in NCCB Capital Limited (Note-11.1) (249,999,900) (249,999,900)Less: Investment in NCCB Exchange (UK) Limited (Note-11.1) (33,709,200) (25,322,000)
1,793,386,326 3,423,188,226 NCCB Securities and Financial Services Limited 218,703,243 171,669,733 NCCB Capital Limited 4,957,284 3,724,126 NCCB Exchange (UK) Limited 794,603 842,336
224,455,130 176,236,195
2,017,841,456 3,599,424,421 Less: Inter company transactions 3,577,757 2,344,599
2,014,263,699 3,597,079,822
12 Borrowing from other banks, financial institutions and agents
Conventional banking (Note-12.1) 4,597,428,859 2,742,839,548
Off-shore banking unit (Note-12.2) 378,096,790 20,693,982
4,975,525,649 2,763,533,530
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12.1 Borrowing from other banks, financial institutions and agents
In Bangladesh
Bangladesh Bank 3,152,439,590 1,063,457,683
SME Foundation 25,000,000 20,000,000
Rupali Bank Limited - 700,000,000
Dutch Bangla Bank Limited - 450,000,000
State Bank of India 150,000,000 250,000,000
Dutch Bangla Bank Limited - 27,383
Repo (ALS) with Bangladesh Bank 1,101,530,000 -
4,428,969,590 2,483,485,066
Outside Bangladesh:
ICICI Bank, Kolkata 18,861,995 22,728,791
Standard Chartered Bank, N.Y - 183,912,979
Standard Chartered Bank, Kolkata 44,865,481 -
Standard Chartered Bank, London - 2,330,522
WACHOVIA NA 26,233,574 15,730,777
ICICI Bank, HKK 33,846,998 21,310,846
Sonali Bank, London - 8,975,938
Sonali Bank, Kolkata 6,864,714 -
Mashreq Bank ,Kolkata 9,408,739 -
Jpmorgan Chess Bank - 1,070,780
Habib American Bank - 53,208
Mashreq Bank New York 28,377,768 3,240,641
168,459,269 259,354,482
4,597,428,859 2,742,839,548
(Annexure 'E' may kindly be seen for details)
12.2 Off-shore banking unit 383,332,567 20,693,982
12.3 Security against borrowings from other banks, financial institutions and agents:
Conventional banking
Secured 4,428,969,590 2,468,594,724
Unsecured 168,459,269 274,244,824
4,597,428,859 2,742,839,548
Off-shore banking unit (Note-12.2)
Secured 378,096,790 20,693,982
Unsecured - -
378,096,790 20,693,982
4,975,525,649 2,763,533,530
12.4
On demand 1,710,570,589 1,674,272,207
In not more than three months 56,415,470 5,803,640
Over three months but less than six months 87,515,470 44,222,097
In more than three months but not more than one year 221,926,457 143,148,743
In more than one year but not more than five years 1,010,309,020 879,061,534
Above five Years 1,888,788,643 17,025,309
4,975,525,649 2,763,533,530
Borrowings from other banks, financial institutions and agents
(according to remaining maturity grouping) payable :
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12 (a) Consolidated borrowing from other banks, financial institutions and agents
NCC Bank Limited (Note-12) 4,975,525,649 2,763,533,530
NCCB Securities and Financial Services Limited 1,811,631,457 1,890,840,821
NCCB Capital Limited - -
NCCB Exchange (UK) Limited - -
6,787,157,106 4,654,374,351
Less: inter company transactions 1,761,631,457 1,890,840,821
5,025,525,649 2,763,533,530
13 Deposits and other accounts
Current deposits 6,573,220,062 5,445,515,750
Sundry deposits (Note 13.5) 2,975,601,379 2,641,223,461
9,548,821,441 8,086,739,211
Saving deposits 12,989,595,636 11,167,226,439
Fixed deposits 45,696,085,137 47,844,992,750
Term deposits:
Special notice deposits 7,107,984,035 5,616,544,746
Special savings scheme 14,814,071,367 12,807,128,491
Special deposit scheme 4,402,728,272 3,568,810,470
Premium term deposits 274,853,642 333,695,595
Instant earning term deposits 200,000 2,800,000
Money double program 8,272,392,501 7,271,261,806
Money triple program 550,703,355 206,086,528
NCCB youngster maximus 7,554,207 4,389,284
35,430,487,379 29,810,716,920
13.1 Bills Payable:
Payment order (issued) 1,954,320,150 1,241,337,257
Pay slip - 2,988
Demand draft 84,304,367 78,426,963
2,038,624,517 1,319,767,208
105,703,614,110 98,229,442,528
13.2 (a) Demand deposits
Deposit from banks - -
Deposit from customers 12,756,509,566 10,411,556,799
12,756,509,566 10,411,556,799
(b) Other deposits:
Deposit from banks:
In fixed deposits accounts:
Premier Bank Ltd. 312,000,000 200,000,000
312,000,000 200,000,000
Deposit from customers 92,635,104,544 87,617,885,729
105,703,614,110 98,229,442,528
13.3 Deposits and other accounts
Conventional banking (Note-13) 105,703,614,110 98,229,442,528
Off-Shore Banking Unit - -
105,703,614,110 98,229,442,528
13.4 (a) Residual maturity grouping of deposits:
From other banks
Payable:
On demand - -
200,000,000
In more than one month but less than six months 312,000,000 -
In more than six months but less than one year - -
In more than one year but within five years - -
In more than five years but within ten years - -
312,000,000 200,000,000
Within one month
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(b) From other than banks
Payable:
On demand 10,717,885,048 10,411,556,799 5,310,723,350 2,700,270,042
In more than one month but less than three months 23,699,602,570 18,752,165,309
In more than three months but less than one year 23,079,340,830 27,254,567,301
In more than one year but within five years 24,237,651,715 23,697,525,460
In more than five years but within ten years 16,307,786,080 15,213,357,617
103,352,989,594 98,029,442,528 103,664,989,594 98,229,442,528
13.5 Sundry Deposits
Sundry creditors 224,076,530 150,886,357
Clearing adjustment 208,875,395 37,559,904
Margin on letters of guarantee 615,614,878 523,672,845
Margin on letters of credit 807,903,655 703,851,845
Security deposits against locker 47,063,299 42,166,114
Foreign correspondents charge 16,472 16,472
Credit balance in CC, SOD, Loan etc. 159,581,701 105,145,755
Collection account 16,978,524 15,528,182
Sanchaypatras 24,065,000 8,440,000
Money gram 56,146,830 46,727,996
LDBP, export bill/ proceeds 372,931,751 726,396,108
Security deposit receipts 13,374,332 19,572,583
U.A.E. Exchange 26,992,094 17,007,513
Placid Express 353,493 1,521,314
FC, FCY retention quota 102,353,608 56,827,619
Cash risk allowance/fund 40,437,071 39,508,454
Majan exchange 4,694,973 2,036,151
Three Star Remittance 439,379 439,384
Fast Remit Exchange House PTY, Australia 1,270,865 -
Advance rent on lease finance 45,112,469 36,126,027
First Solution money transfer 160,230 160,231
Al-Fardan exchange Co.L.L.C. 11,488,173 1,031,579
Habib Qatar 626,752 2,321,311
K.M. Financial Services London 1,172,709 2,004,369
Arab National Bank (KSA) 36,918,295 33,126,796
Wall Street Exchange 7,234,352 3,592,910
Dhaka Janata Express 1,793,246 1,793,246
Visa credit card & others 2,321,629 1,639,616
Foreign remittance 20,588,996 5,736,982
Retained comm.from remittance 102,766 371,152
Provident fund 30,145,090 2,000,000
Credit card deposit A/c. 4,012,414 2,179,667
Alternative cash assistance 89,475 89,475
Zenj Exchange 2,014,496 2,022,444
SMS banking charge 8,848,427 174,009
National Exchange Co. 161,187 1,828,103
IME(M) SDN.BHD 15,080,198 10,954,976
Al Zaman Exchange 4,603,945 4,024,002
Transmit International Inc. USA 36,054 5,048,081
Al Mulla International Exchange 2,092,665 1,800,516
Kushiara Financial Services Ltd.-London 60,945 60,945
Samso,s Express Money Transfer 1,157,169 1,157,109
Western Union 3,442,674 2,603,603
AN Express UK 513,315 513,358
Japan Remit Finance Co. Ltd. 727,103 2,674,299
NEC Money Transfer Spain 16,088,539 900,589
Benevolent fund 1,601,935 751,235
Balance Carried Forward 2,941,365,098 2,623,991,226
Within one month
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Balance Brought Forward 2,941,365,098 2,623,991,226
Bluestar Services 30,081 18,990
NCCB Sure Cash Consolidated 500 -
Sigue Global Services Ltd. 1,211,997 943,012
Enquiry charge of CIB 1,244,415 2,643,137
GS Money Transfer Bedford, UK 2,206,285 1,393,835
Trans Fast Remittance LLCC 4,934,275 3,775,973
Islamic Exchange Co. 2,944,250 3,270,492
Continental Exchange Solutions (Ria) 11,590,796 3,789,923
Unclaimed block account balances for 10 years & above 1,400 1,200
Bangladesh Bank Bach & Clearing Charge 350,917 -
Internet Banking Charge 470,095 -
Prefunding to TMSS 7,096,485 -
NCCB Visa Debit Card 1,122,500 -
Others 1,032,285 1,395,673 2,975,601,379 2,641,223,461
13 (a) Consolidated deposits and other accounts
Current deposits and other accounts
NCC Bank Limited (Note-13) 9,548,821,441 8,086,739,211
31,722,794 28,851,135
- -
NCCB Exchange (UK) Limited
9,580,544,235 8,115,590,346
Less: Inter company transactions 277,130,441 271,345,963
9,303,413,794 7,844,244,383
Bills payable
NCC Bank Limited (Note-13.1) 2,038,624,517 1,319,767,208
- -
- -
NCCB Exchange (UK) Limited - -
2,038,624,517 1,319,767,208
Savings bank deposits
NCC Bank Limited (Note-13) 12,989,595,636 11,167,226,439
- -
- -
NCCB Exchange (UK) Limited - -
12,989,595,636 11,167,226,439
Fixed deposits
NCC Bank Limited (Note-13) 45,696,085,137 47,844,992,750
- -
- -
NCCB Exchange (UK) Limited - -
45,696,085,137 47,844,992,750
Less: Inter company transactions - -
45,696,085,137 47,844,992,750
Term deposits
NCC Bank Limited (Note-13) 35,430,487,379 29,810,716,920
- -
- -
NCCB Exchange (UK) Limited - -
35,430,487,379 29,810,716,920
Less: Inter company transactions - -
35,430,487,379 29,810,716,920
105,458,206,463 97,986,947,700
NCCB Securities and Financial Services Limited
NCCB Capital Limited
NCCB Securities and Financial Services Limited
NCCB Securities and Financial Services Limited
NCCB Capital Limited
NCCB Securities and Financial Services Limited
NCCB Capital Limited
NCCB Securities and Financial Services Limited
NCCB Capital Limited
NCCB Capital Limited
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14 Other liabilities
Conventional banking (Note-14.1) 10,126,986,790 9,779,505,380
Off-shore banking unit (Note-14.7) 3,707,458 206,965
Interest payable of off-shore banking unit - 171,852
10,130,694,248 9,779,884,197
14.1 Conventional banking
Other liabilities
Interest payable 2,525,683,096 1,433,661,501
Excise duty 100,230,352 92,383,398
Special reserve of garments accounts 16,631,458 16,331,259
Provision for expenses 3,723,441 3,309,056
Audit fee payable 150,000 150,000
Withholding tax payable 185,295,934 245,446,119
Inter branch transaction account 254,763,149 253,955,174
Deduction of VAT on LC commission and service charges 61,313,613 58,099,161
Provision for other assets ( Note 14.2) 23,481,561 23,481,561
Provision for income tax ( Note 14.3) 1,123,003,802 2,648,380,414
Deferred tax liabilities (Note 14.4.1) 416,372,694 286,579,106
Provision for loans and advances (Note 14.5 ) 3,426,389,345 3,331,560,804
Provision on off balance sheet items (Note-14.6) 345,215,700 274,615,302
Interest suspense account (Note 14.8 ) 1,488,795,712 979,431,588
Contribution to NCC Bank Foundation (Note-14.9) 25,000,000 20,000,000
Provision for gratuity (Note-14.10) 110,270,549 97,675,715
Reserve for unforeseen loss 16,723,725 14,445,222
Inter bank transaction account 3,942,659 -
10,126,986,790 9,779,505,380
14.2 Provision for other assets:
Opening balance 23,481,561 9,049,793
Add: Provisions made during the year - 14,431,768
Less: Provisions no longer required - -
Closing balance 23,481,561 23,481,561
14.3 Provision for income tax:
Opening balance 2,648,380,414 1,443,399,158
Add: Provision made for current tax 749,661,486 1,127,981,256
Provision for prior years tax 119,694,168 77,000,000
869,355,654 1,204,981,256
3,517,736,068 2,648,380,414
Less: Adjustment during the year 2,394,732,266 -
Closing balance 1,123,003,802 2,648,380,414
14.4 Consolidated provision for income tax:
Opening balance 2,846,903,652 1,573,842,534
Add : Provision made for NCC Bank Limited 749,661,486 1,127,981,256
Add : Provision made for prior years for NCC Bank Limited 119,694,168 77,000,000
Add : Provision made for NCCB Securities and Financial Services Limited 7,879,650 65,086,678
Add : Provision made for NCCB Capital Limited - 2,993,184
877,235,304 1,273,061,118
Less: Adjustment during the year 2,394,732,266 -
1,329,406,690 2,846,903,652
Annexure-F may kindly be seen for details corporate tax position
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14.4.1 Deferred tax
Deferred tax liabilities 2014
Temporary difference
taxable/(deductible)
457,163,618
364,710,451
236,828,284
10,479,746
Vehicles 1,297,666
570,316,782
Furniture & Fixture 299,628,488 3,351,963
1,644,148,510
42.50% & 4%
Deferred tax liabilities 522,755,124
Deferred tax liabilities 2013
Temporary difference
taxable/(deductible)
460,678,503
229,435,271
127,069,457
14,889,625
Vehicles 1,594,663
399,038,305
1,232,705,824
42.50% & 3%
Deferred tax liabilities 341,931,967
Opening balance 323,645,421 319,279,212
Add: Provision for revaluation reserve on Land 18,286,545 13,820,355
341,931,966 333,099,567
Less: Reverse provision for revaluation on Land - -
341,931,966 333,099,567
Addition during the year 180,823,158 8,832,399
522,755,124 341,931,966
Adjustment made during the year - -
Closing balance 522,755,124 341,931,966
Deferred tax assets 2014
Temporary difference
(taxable)/(deductible
)
Provision for gratuity (110,270,549)
Provision for investment fluctuation in shares (495,377,836)
Provision for other assets (23,481,561)
(629,129,946)
42.50% &10.00%
Deferred tax assets (106,382,430)
768,971,455 1,133,681,906
317,631,495
Total temporary difference (deductible)
-
(629,129,946)
(110,270,549) -
(23,481,561)
As per tax base
554,459,779
457,163,618
302,980,451
185,426,269
-
As per tax base
574,047,470
Building/apartments 577,070,497
-
28,384,685
-
Particulars of assets/liabilities
34,511,129
399,038,305
Total temporary difference taxable 1,346,074,791
Particulars of assets/liabilities
Revaluation portion of land
As per carrying
value
570,316,782
Accrued interest on Govt. securities
312,495,726
As per carrying
value
3,071,244,021
Particulars of assets/liabilities As per carrying
value As per tax base
1,427,095,511
-
347,635,226
Revaluation portion of land 460,678,503
Machinery & equipment
Accrued interest on Govt. securities
29,682,351
Total temporary difference (taxable)
22,959,134 12,479,388
Building/apartments
Machinery & equipment
Local software
32,916,466
22,959,134 8,069,509
(495,377,836) -
-
Local software
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Deferred tax assets 2013
Temporary difference
(taxable)/(deductible
)
Furniture & fixture (2,963,973)
Provision for investment fluctuation in shares (441,135,083)
Provision for other assets (23,481,561)
(467,580,617)
42.50% & 10%
Deferred tax assets 55,352,860
Opening balance 55,352,860 30,570,243
Addition during the year 51,029,570 24,782,617
106,382,430 55,352,860
Adjustment made during the year - -
Closing balance 106,382,430 55,352,860
416,372,694 286,579,106
129,793,588 (15,950,218)
14.5 Provision for loans and advances
a) Movement in specific provision on classified loans and advances
Opening balance 2,663,394,687 1,705,136,900
Fully provided debt written off (1,010,025,120) (148,626,458)
Add: Recoveries of amount previously written off 11,873,927 12,368,153
Net charged to profit and loss account 1,039,908,407 1,094,516,092
Provision held at the end of the year 2,705,151,901 2,663,394,687
b) Movement in general provision on unclassified loans and advances
Opening balance 668,166,117 620,741,403
53,071,327 47,424,714
- -
721,237,444 668,166,117
Total (a+ b) 3,426,389,345 3,331,560,804
14.5.1 Consolidated provision for loans and advances charged to profit and loss account
a) Specific provision on classified loans and advances
NCC Bank Limited 1,039,908,407 1,094,516,092
NCCB Securities and Financial Services Limited 10,000,000 153,647,099
NCCB Capital Limited - -
NCCB Exchange (UK) Limited - -
1,049,908,407 1,248,163,191
b) Movement in general provision on unclassified loans and advances
NCC Bank Limited 53,071,327 47,424,714
NCCB Securities and Financial Services Limited - -
NCCB Capital Limited - -
NCCB Exchange (UK) Limited - -
53,071,327 47,424,714
Total (a+b) 1,102,979,734 1,295,587,905
Add: Provision made for the year/net charge in profit and loss account
Particulars of assets/liabilities As per carrying
value As per tax base
-
Adjustment during the year
Total temporary difference deductible 259,562,107
Net deferred tax (income)/ expense charged to P/L
(208,018,510)
Net deferred tax (assets)/liabilities
256,598,134
(23,481,561) -
259,562,107
(441,135,083)
66
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14.6 Provision on off-balance sheet items
Opening balance 274,615,302 256,173,211
70,600,398 18,442,091
Closing balance 345,215,700 274,615,302
14.7 Provision for Off-shore banking unit
Opening balance 206,965 -
3,500,493 206,965
- -
3,707,458 206,965
14.8 Interest suspense account
Opening balance 979,431,588 613,309,927
Add: Amount transferred during the year 699,371,390 434,370,445
Less: Amount recovered during the year (93,844,587) -
(96,162,679) (68,248,784)
Closing balance 1,488,795,712 979,431,588
14.9
20,000,000 10,000,000
25,000,000 20,000,000
45,000,000 30,000,000
20,000,000 10,000,000
Closing balance 25,000,000 20,000,000
14.10
97,675,715 68,882,206
110,270,549 97,675,715
(97,675,715) (68,882,206)
110,270,549 97,675,715
14(a) Consolidated other liabilities
NCC Bank Limited (Note-14) 10,130,694,248 9,779,884,197
1,003,449,532 793,475,264
17,648,110 16,173,814
NCCB Exchange (UK) Limited 7,723,411 6,665,889
11,159,515,301 10,596,199,164
Less: Inter company transactions 3,577,757 2,344,599
11,155,937,549 10,593,854,568
15 Share capital
15.1 Authorized share capital
1,000,000,000 ordinary shares @ of Tk. 10 each 10,000,000,000 10,000,000,000
Provision for gratuity
NCCB Securities and Financial Services Limited
NCCB Capital Limited
Opening balance
Add: Contribution during the year
Add: Provision made for the year/net charge in profit and loss account
Add: Provision made during the year
Adjustment during the year
Add: Provision made during the year
Opening balance
Less: Adjustment during the year
Less: Adjusted/transferred to STD account
Less: Amount written off during the year
Contribution to NCC Bank Foundation (NCCBF)
Closing balance
67
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15.2 Issued, subscribed and fully paid-up capital
39,000,000 Ordinary shares of Tk 10 each issued for cash 390,000,000 390,000,000
619,441,888 Ordinary shares of Tk 10 each issued as bonus 6,194,418,880 5,812,073,430
144,483,570 Ordinary shares of Tk 10 each issued as right share in Cash 1,444,835,700 1,444,835,700
8,029,254,580 7,646,909,130
15.3
Accounting
YearCumulative
1993 195,000,000 1994 195,000,000 1995 195,000,000 1996 195,000,000 1997 195,000,000 1998 195,000,000 1999 390,000,000 2000 429,000,000 2001 480,480,000 2002 552,552,000 2003 607,807,200 2004 790,149,300 2005 1,092,535,000 2005 1,201,788,500 2006 1,352,012,000 2007 1,757,615,600 2008 2,284,900,200 2009 3,358,803,200 2010 4,501,253,300 2010 5,941,654,350 2011 6,951,735,580 2012 695,173,550 7,646,909,130 2013 382,345,450 8,029,254,580
15.4 % of shareholdings as on 31 December 2014
Particulars % of holdings
Local sponsors 29.66 2,381,516,570 2,266,224,490
Financial institutions 10.29 825,959,850 810,176,790
Foreign investors 0.19 15,538,090 16,727,080
Public issues 59.86 4,806,240,070 4,553,780,770
100.00 8,029,254,580 7,646,909,130
15.5 Range wise shareholdings as on 31 December 2014
No. of shares
83,627,600
38,133,165
34,143,886
16,988,079
10,716,394
8,530,358
27,557,688
26,838,025
15,073,822
15,726,626
9,844,922
29,569,777
216,865,545
269,309,571
802,925,458
-
802,925,458 Ordinary shares of Tk 10 each
No. of Share
-
12.50% Bonus Share
-
30,238,570
15% Bonus Share
10% Bonus Share
50%Right Share
Value of capital
-
39,000,000
-
195,000,000
-
-
72,072,000
195,000,000
-
-
Initial Public Offer (IPO)
12% Bonus Share
7,207,200
5,148,000
30% Bonus Share
30% Bonus Share
15,022,350
52,728,460
40,560,360
% of shares holding
27.01
3.68
1.88
1.96
1.23
Range of holding of shares No. of share holders
10% Bonus Share 69,517,355
1,553,809
480,624,007
3.43
3.34
2.12
33.54
100.00
4.75
4.25
310
7021.33
1.06
10.42
2473
197
40,001 to 50,000
60
8,029,254,580
302,385,700
1,440,401,050
1,142,450,100
1,073,903,000
527,284,600
150,223,500
1,010,081,230
405,603,600
17% Bonus Share
10,925,350
144,040,105
114,245,010
47% Bonus Share
-
1,000,001 to 10,000,000
88643
22
75
17
500,001 to 1,000,000
400,001 to 500,000
40
238,151,657
Total
100,001 to 200,000
200,001 to 300,000
32% Bonus Share
30,001 to 40,000
20,001 to 30,000
802,925,458
10,001 to 20,000
5,001 to 10,000
Less than 5,000
82,595,985
30% Bonus Share 18,234,210
-
-
-
19,500,000
3,900,000
5,525,520 10% Bonus Share
50,001 to 100,000
No of share
Declaration
5468
394
5% Bonus Share 38,234,545
802,925,458
78651
300,001 to 400,000
10,000,001 to 100,000,000
10% Bonus Share
19,500,000
101,008,123
188
46
-
50%Right Share
History of paid-up capital of NCC Bank Limited
Opening Capital
51,480,000
55,255,200
-
182,342,100
109,253,500
107,390,300
68
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15.6 Capital Adequacy Ratio (CAR) (Solo Basis)
i) Core capital (Tier- i)
Paid-up capital 8,029,254,580 7,646,909,130
Statutory reserve -Note-16 4,783,513,367 4,283,417,675
General reserve -Note-17 10,162,348 10,162,348
Surplus in profit & loss account -Note-19 1,042,173,555 878,582,630
13,865,103,850 12,819,071,783
ii) Supplementary capital (Tier- ii)
General provision on unclassified Loan -Note-14.5(B) 721,237,444 668,166,117
General provision for off-balance sheet exposures-Note-14.6 345,215,700 274,615,302
General Provision for off-shore banking unit-Note-14.7 3,707,458 206,965
Revaluation reserve on Govt. securities 50% of total-Note-18.2 20,856,792 2,048,949
Assets revaluation reserve 50% of total-Note-18.1 221,574,368 223,331,807
1,312,591,762 1,168,369,140
A) Total capital (Tier-i+Tier-ii) 15,177,695,612 13,987,440,923
Total assets including off-balance sheet items 168,257,574,983 150,278,494,527
B) Total risk weighted assets 112,672,051,518 117,820,225,616
(Details computation of RWA shown in Annexure-G)
C) Required capital ( 10% of Total Risk Weighted Assets) 11,267,205,152 11,782,022,562
D) Surplus (A-C) 3,910,490,460 2,205,418,361
Capital adequacy ratio 13.47% 11.87%
Capital adequacy ratio :
Held
Tier-I 10.88%
Tier-II 0.99%
Total 11.87%
15.7 Capital Adequacy Ratio (Consolidated Basis)
i) Core capital (Tier- i)
Paid-up capital 8,029,254,580 7,646,909,130
Statutory reserve-Note-16 4,783,513,367 4,283,417,675
General reserve-Note-17 10,162,348 10,162,348
Non-controlling (Minority) interest-Note-15.8 215 215
Surplus in profit & loss account-Note-19(a) 1,046,694,283 889,752,897
13,869,624,793 12,830,242,264
ii) Supplementary capital (Tier- ii)
General provision on unclassified Loan -Note-14.5(B) 721,237,444 668,166,117
General provision for off-balance sheet exposures-Note-14.6 345,215,700 274,615,302
General Provision for off-shore banking unit-Note-14.7 3,707,458 206,965
Revaluation reserve on Govt. securities 50% of total-Note-18.2 20,856,792 2,048,949
Assets revaluation reserve 50% of total-Note-18.1 221,574,368 223,331,807
1,312,591,762 1,168,369,140
A) Total capital (Tier-i+Tier-ii) 15,182,216,554 13,998,611,404
Total assets including off-balance sheet items 169,094,603,926 150,862,048,204
B) Total risk weighted assets 114,351,589,587 118,902,889,105
2013
Required
5.00%
5.00%
10.00%10.00%
12.31%
13.47%
1.16%5.00%
Capital
requirement
5.00%
Required Held
2014
69
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(Details computation of RWA shown in Annexure-G)
C) Required capital ( 10% of risk weighted assets) 11,435,158,959 11,890,288,911
D) Surplus/(deficit) (A-C) 3,747,057,596 2,108,322,493
Capital adequacy ratio : 13.28% 11.77%
Held
Tier-I 10.79%
Tier-II 0.98%
Total 11.77%
15.8 Non-controlling (Minority) interest
Share capital 215 200
Profit attributable during the year - 5
Retained earnings - 12
Final dividend paid - (2)
215 215
15.9 Name of the directors and their shareholdings:
S. L.
No.
Position as on
31.12.2013
1 16,403,547 15,336,712
2 16,062,961 15,298,059
3 16,878,750 15,296,051
4 16,073,131 15,307,744
5 16,171,936 15,401,845
6 16,870,685 16,067,320
7 16,104,975 15,338,072
8 16,060,466 15,295,682
9 16,880,250 15,297,493
10 17,833,013 16,983,822
11 20,047,301 19,092,668
12 20,916,076 19,920,073
13 - -
14 - -
206,303,091 194,635,541
Note: Directors at SL. Nos. 10, 11 & 12 vacated their directorship on 29.03.2015.
16
Opening balance on 1 January 4,283,417,675 3,818,042,032
Addition during the year (20% of pre-tax profit) 500,095,692 465,375,643
Closing balance at 31 December 4,783,513,367 4,283,417,675
2013
Statutory reserve
Mr. Md. Moinuddin Director
Independent DirectorMr. Md.Amirul Islam, FCS, FCA
Mr. K.A.M.Harun Independent Director
Mr. Md. Abdul Awal
Chairman
Held
1.15%
Name of directors
Director
12.13%5.00%
Director
Alhaj Md. Nurun Newaz
Status with Bank as on
31.12.2014
Vice Chairman
13.28%
Position as on
31.12.2014
Required
5.00%
10.00%
5.00%
5.00%
DirectorMr. Yakub Ali
Mr.Khairul Alam Chaklader Director
10.00%
Mr.Md. Abul Bashar Director
Director
Mrs. Sohela Hossain
Capital
requirement Required
2014
Mr.Md. Harunur Rashid
Mr.Abdus Salam
Mr. A.S.M Main Uddin Monem
Mr. Amjadul Ferdous Chowdhury
Mr. S.M. Abu Mohsin Director
Director
Director
70
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17 General reserve
Opening balance on 1 January 10,162,348 10,162,348
Addition during the year - -
Less : Adjusted during the year - -
Closing balance at 31 December 10,162,348 10,162,348
18 Other reserves
18.1 Assets revaluation reserve on land and building
Opening balance 464,950,159 467,162,980 Less : Provision for deferred tax 18,286,545 14,014,889
446,663,614 453,148,091
Less: Depreciation on revalued amount transferred to retained earnings 3,514,878 6,484,477
443,148,736 446,663,614
Add: Reverse deferred tax on revaluation on land - -
443,148,736 446,663,614 Add: Addition during the year - -
443,148,736 446,663,614
18.2 Revaluation reserve on Govt. securities (treasury bills & bonds)-HTM
Opening balance 4,097,898 16,581,364 Add: addition during the year 161,515,485 1,874,937 Held to maturity (HTM ) 8,007,887 - Held for trading (HFT) 151,156,851 - Treasury bond (RM) 2,350,747 1,874,937 Less: adjusted during the year (123,899,800) (14,358,403) Held to maturity (HTM )
Held for trading (HFT) (123,899,800) (14,358,403) Closing balance 41,713,583 4,097,898
484,862,319 450,761,512
18.3 Foreign currency translation gain/(Loss)
Opening balance 2,518 - Add: Transfer during the year (279,155) 2,518 Closing balance (276,637) 2,518
19
Retained earnings brought forward from previous year ( Note-19.1 ) 37,425,151 199,626,621
1,501,329,218 1,137,847,175
(500,095,692) (465,375,643)
- -
- -
1,038,658,677 872,098,153 Depreciation on revalued amount of building Trans. to retained earnings 3,514,878 6,484,477
1,042,173,555 878,582,630
19(a) Consolidated surplus in profit and loss account
Retained earning brought forward from previous year 48,592,899 208,145,541
Profit for the year 1,494,682,198 1,140,498,525 General reserve - - Interim dividend - -
(500,095,692) (465,375,643)
1,043,179,405 883,268,425
Less: Minority Interest - (5)
1,043,179,405 883,268,420
Dep.on revalued amount of building Trans. to retained earnings 3,514,878 6,484,477 1,046,694,283 889,752,897
Surplus in profit and loss account
Transfer to statutory reserve
Transfer to statutory reserve
Profit for the year
Transferred to general reserve
Transferred from general reserve
71
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19.1
Conventional Banking 37,425,151 199,626,621
Off-Shore Banking UNIT -
37,425,151 199,626,621
Conventional Banking
878,585,149 886,147,736
Expenditure charged wrongly to bank instead of NCCB Capital Ltd. - 8,652,435
Bonus share transferred to paid-up capital (382,345,450) (695,173,550)
Cash dividend paid (458,814,548) -
37,425,151 199,626,621
19.2
889,752,897 894,666,656
Add: Expenditure charged wrongly to bank instead of NCCB Capital Ltd. - 8,652,435
Bonus share transferred to paid-up capital (382,345,450) (695,173,550)
Cash dividend paid (458,814,548) -
48,592,899 208,145,541
19.3 Consolidated foreign currency translation gain/(Loss)
NCC Bank Limited (Note-18.3) (276,637) 2,518
NCCB Securities and Financial Services Limited - -
NCCB Capital Limited - -
NCCB Exchange (UK) Limited 2,672,346 907,653
2,395,709 910,171
20 Contingent liabilities :
20.1 11,771,729,896 12,350,769,134
20.2
Directors 111,000 9,160,000
Government 6,337,715,888 1,903,884,754
Banks and other financial institutions 75,828,866 1,047,173,500
Others 4,981,467,349 3,711,699,181
Total 11,395,123,103 6,671,917,435
Less: Margin - Note 13.5 615,614,878 523,672,845
10,779,508,225 6,148,244,590
20.3 Letter of credit issued
Documentary Credit and short-term trade-related transactions 10,890,049,609 8,429,713,928
Forward Assets purchased and forward deposits placed - -
Spot and forward foreign exchange rate contract - -
Other exchange contract - -
Total 10,890,049,609 8,429,713,928
Less: Margin - Note 13.5 807,903,655 703,851,845
10,082,145,954 7,725,862,083
20.4 Bills for collection 295,242,380 3,894,651
Letter of guarantee
Acceptances and endorsement
Undrawn formal standby facilities, credit facilities and
liable in respect of guarantees issued
Opening balance
Consolidated retained earnings
Money for which the Bank is contingently
Closing balance
Opening balance
Retained earnings
Retained earnings
Closing balance
72
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21 Income statement
Income:
Interest, discount and similar income (Note-21.1) 14,631,734,339 14,953,471,792
Dividend income (Note-21.2) 61,042,636 42,459,567
Fee, commission and brokerage (Note-21.3) 635,013,672 653,207,867
Gains less losses arising from dealing in securities - -
Gains less losses arising from investment securities - -
Gains less losses arising from dealing in foreign currencies 199,627,853 259,232,444
Income from non-banking assets - -
Other operating income (Note-26) 344,308,980 319,522,236
Profit less losses on interest rate changes - -
15,871,727,480 16,227,893,906
Expenses
Interest, fee and commission (Note-23) 9,339,227,961 10,154,704,915
Losses on loans and advances - -
Administrative expenses (Note-21.4) 2,383,473,137 1,982,812,661
Other operating expenses (Note-36) 254,914,885 240,598,299
Depreciation on banking assets (Note-35) 147,309,634 150,964,056
12,124,925,617 12,529,079,931
3,746,801,863 3,698,813,975
21.1 Interest, discount and similar income
Interest income on loans and advances 11,999,643,549 12,097,573,754
Interest on balances with other banks and financial institutions 20,140,619 96,524,718
Interest on treasury bill 185,091,831 50,792,414
Interest on Reverse Repo (Treasury bills) 1,306,352 -
Interest on treasury bond (RM) 522,508,680 531,222,265
Gain on sale of shares 39,071,075 62,755,348
Capital gain on sale of treasury bonds 546,140,754 972,228,992
Interest on treasury bond (HTM) 1,031,662,646 1,047,290,292
Interest on treasury bond (HFT) 267,340,300 69,473,704
Interest on zero coupon bonds 4,627,783 1,834,347
Others 14,200,750 23,775,958
14,631,734,339 14,953,471,792
21.2 Dividend income
Dividend on shares 61,042,636 22,459,569
Dividend from NCCB Securities and Financial Services Ltd. - 19,999,998
61,042,636 42,459,567
21.3 Fee, commission and brokerage
Commission 635,013,672 653,207,867
Brokerage - -
635,013,672 653,207,867
21.4 Administrative expenses
Salary and allowances (Note-27) 1,738,691,455 1,424,775,370
Rent, taxes, insurance, electricity etc. (Note-28) 282,526,645 244,398,065
Legal expenses (Note-29) 19,889,646 14,798,420
Postage, stamp and telecommunication (Note-30) 28,109,335 27,104,240
Stationery, printing, advertisement etc. (Note-31) 70,819,994 77,635,840
Managing Director's salary & allowances (Note-32) 9,204,354 8,880,000
Director's fees (Note-33) 1,770,000 1,495,000
Audit fees (Note-34) 150,000 150,000
Repairs & maintenance of bank's assets (Note-35) 232,311,708 183,575,726
2,383,473,137 1,982,812,661
73
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22 Interest income
Conventional banking (Note-22.1) 12,016,454,445 12,193,950,023
Off-shore banking unit (Note-22.2) 10,555,063 320,301
12,027,009,508 12,194,270,324
Less: intertransaction between OBU and conventional banking 7,225,340 171,852 12,019,784,168 12,194,098,472
22.1 Conventional banking
Interest on loans and advances
Loan ( General) 252,224,902 493,236,786
Loan against house building 178,797,672 219,513,219
Loan against imported merchandise 14,095,975 19,629,038
Loan against trust receipts 2,098,168,575 2,554,304,545
Loan against packing credit 11,443,599 12,709,040
Demand Loan 27,851,625 -
SOD against financial obligation 821,895,586 806,944,949
SOD against real estate - 60,819
SOD general 1,360,733,710 1,354,873,894
SOD export 30,029,817 46,185,863
Discount -EDF 525,374 -
C.C. against pledge 12,118,879 11,959,387
C.C. against hypothecation 2,315,661,988 2,288,236,647
C.C. against export 1,334,050 665,510
Forced loan 367,539,007 265,958,852
Inland bill purchased 6,625,944 2,070,403
FDBP & discounted 6,065,590 8,869,972
Payment against documents 72,387,544 125,991,286
Local documentary bills purchased 247,625,209 270,648,034
Transport loan 40,271,219 54,702,346
Project loan - 6,256,943
Lease finance 211,646,902 224,786,183
Small business loan 114,919,778 106,176,957
House renovation loan 3,033,070 4,951,293
Personal loans 1,409,090 1,008,471
Consumers finance scheme 35,570 63,862
Home improvement loan 21,168,268 14,025,658
Short Term Finance (STF) 84,232,124 -
Agri credit 202,581,623 173,971,495
Festival small business loan 7,996,365 11,480,456
Term loan (small, medium/large) 2,088,448,267 1,934,191,915
Special housing loan 160,751,758 159,624,902
Housing loan under refinance scheme 2,612,114 2,925,733
Staff P.F loan 20,877,479 21,922,787
Staff house building loan 18,575,732 20,019,770
Staff car loan 3,475,457 1,706,842
Credit card 97,657,565 87,568,321
Car loan scheme 7,269,322 11,253,059
Short term loan 437,486,635 388,491,312
Garments & foot wear cluster 777,412 611,485
Time loan 638,505,108 389,627,168
OBU 7,227,040 -
Education loan scheme 230,882 200,103
11,996,313,826 12,097,425,305
74
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Interest on balances with other banks and financial institutions
Fixed deposits 11,785,204 69,491,250
Short term deposits 25,398 51,367
Nostro accounts 3,643,739 5,242,214
Money at call & short notice 3,634,639 17,970,833
Financial institutions 294,583 2,436,389
757,056 1,332,665
20,140,619 96,524,718
12,016,454,445 12,193,950,023
22.2 Off-Shore Banking Unit 10,555,063 320,301
22(a) Consolidated interest income
NCC Bank Limited (Note-22) 12,019,784,168 12,194,098,472
NCCB Securities and Financial Services Limited 251,905,890 466,086,881
NCCB Capital Limited - 10,854,216
NCCB Exchange (UK) Limited - -
12,271,690,058 12,671,039,569
Less: Inter company transactions 269,353,226 277,731,180
12,002,336,832 12,393,308,389
23 Interest paid on deposits and borrowings
Conventional banking (Note-23.1) 9,339,227,961 10,154,704,915
Off-shore banking unit (Note-23.2) 7,225,340 171,852
9,346,453,301 10,154,876,767
Less: intertransaction between OBU and conventional banking 7,225,340 171,852
9,339,227,961 10,154,704,915
23.1 Conventional banking
Interest paid on deposits and borrowings
Savings deposits 474,346,437 438,731,153
Short notice deposits 369,013,097 428,187,786
Fixed deposits 4,899,850,029 6,182,310,776
Special savings scheme 1,492,032,979 1,215,150,915
Special deposit scheme 506,419,804 360,465,858
NCCB youngster maximus & money plant scheme 2,638,224 1,150,000
Discount 27,777 945
Borrowings from banks, financial institutions, etc. 283,022,885 448,272,089
REPO agreement with Bangladesh Bank 263,436,901 259,528,524
Wage earners welfare DPS 13,166,872 20,062,712
Premium term deposits 40,145,623 35,095,488
Instant earning term deposits 31,500 433,500
Money double program 949,232,735 751,112,960
Money triple program 45,863,098 13,793,978
Others - 408,231
9,339,227,961 10,154,704,915
23.2 Off-Shore Banking Unit 7,225,340 171,852
23(a) Consolidated interest paid on deposits, borrowings, etc.
NCC Bank Limited (Note-23) 9,339,227,961 10,154,704,915
NCCB Securities and Financial Services Limited 269,353,226 266,876,964
NCCB Capital Limited - -
NCCB Exchange (UK) Limited - -
9,608,581,187 10,421,581,879
Less: Inter company transactions 269,353,226 277,731,180
9,339,227,961 10,143,850,699
Discount on bills purchased
75
31.12.2014 31.12.2013
Taka Taka
24 Income from investments
Dividend on shares 61,042,636 22,459,569
Dividend from NCCB Securities and Financial Services Ltd. - 19,999,998
Interest on treasury bills 185,091,831 50,792,414
Interest on Reverse Repo (Treasury bills) 1,306,352 -
Interest on treasury bond (RM) 522,508,680 531,222,265
Gain on sale of shares 39,071,075 62,755,348
Capital gain on sale of treasury bonds 546,140,754 972,228,992
Interest on treasury bond (HTM) 1,031,662,646 1,047,290,292
Interest on treasury bond (HFT) 267,340,300 69,473,704
Interest on zero coupon bonds 4,627,783 1,834,347
Others 14,200,750 23,775,958
2,672,992,807 2,801,832,887
24(a) Consolidated income from investments
NCC Bank Limited (Note-24) 2,672,992,807 2,801,832,887
NCCB securities and Financial Services Limited 134,250 465,942
NCCB Capital Limited - -
NCCB Exchange (UK) Limited - -
2,673,127,057 2,802,298,829
Less: Inter company transactions - 19,999,998
2,673,127,057 2,782,298,831
25 Commission, exchange and brokerage
Commission:
Commission on bill purchased 7,564,995 10,394,061
Commission on remittances 17,812,732 24,185,799
Commission on letter of guarantee 153,166,319 126,499,508
Commission on letter of credit 184,706,490 192,830,877
Commission on pur./sale-share/securities 522,532 517,763
Commission on sanchaypatra 3,683,484 381,417
Commission on back to back LC. 25,433,804 32,331,498
Letter of credit advising commission & handling charge 36,904,047 35,656,044
Commission on acceptance of BTB L/C 26,015,720 42,671,880
Commission on acceptance ( other than BTB) 109,031,219 100,722,606
Commission - Miscellaneous 6,522,778 6,488,356
Commission on L/C confirmation 132,428 14,824
Underwriting commission 33,465,835 59,764,514
Commission on instrument cancellation 3,150 6,450
ATM POS commission 230 11,663
Commission from national prize bonds 33,000 482,000
Money gram/others 30,014,909 20,248,607
635,013,672 653,207,867
Exchange:
199,627,853 259,232,444
Brokerage - -
834,641,525 912,440,311
25(a) Consolidated commission, exchange & brokerage
NCC Bank Limited (Note-25) 834,641,525 912,440,311
NCCB Securities and Financial Services Limited 102,173,092 102,914,461
NCCB Capital Limited - -
NCCB Exchange (UK) Limited 5,674,031 2,710,515
942,488,648 1,018,065,287
Exchange gain net off exchange losses
76
31.12.2014 31.12.2013
Taka Taka
26 Other operating income
Rent locker 3,298,297 2,297,885
Rent godown 1,751,300 1,175,190
Postage recoveries 7,082,016 9,385,591
Telex, telegram, trunk call, fax.swift etc. recoveries 30,751,676 28,632,037
Incidental charge recoveries 1,000 57,475
Legal charge recoveries 371,525 3,000
Service charges 54,941,399 51,903,443
ATM transaction fees 828,699 911,118
Profit on sale of fixed assets 1,375,396 4,253,362
Risk fund 5,589,047 6,934,399
Account maintenance fees 82,877,438 74,462,800
Card fees & others 44,815,413 47,529,651
Banking & Clearing Charge 10,854,202 -
Exchange equalization gain 26,913 5,992
Miscellaneous earnings 83,258,869 76,837,322
Application and processing fees 16,485,790 15,132,971
344,308,980 319,522,236
26(a) Consolidated other operating income
NCC Bank Limited (Note-26) 344,308,980 319,522,236
NCCB Securities and Financial Services Limited 3,412,269 4,773,187
NCCB Capital Limited - -
NCCB Exchange (UK) Limited - -
347,721,249 324,295,423
27 Salary & allowances
Basic salary 737,497,408 618,806,492
House rent allowance 264,217,754 171,091,642
Allowances ( Note 27.1) 265,808,178 253,865,200
Bank's contribution to provident fund 62,453,898 51,916,321
Bonus 297,497,800 231,126,000
Gratuity-(Note-14.10) 110,270,549 97,675,715
Honorarium 945,868 294,000
1,738,691,455 1,424,775,370
27.1 Allowances
Entertainment allowance 38,094,102 57,280,712
Medical allowance 117,755,721 116,501,648
Washing allowance 1,869,973 1,071,281
Evening banking 514,950 519,916
Casual wages 39,462,670 29,957,804
Other allowance 68,110,762 48,533,839
265,808,178 253,865,200
27(a) Consolidated Salary & allowances
NCC Bank Limited (Note-27) 1,738,691,455 1,424,775,370
NCCB Securities and Financial Services Limited 30,451,984 24,682,178
NCCB Capital Limited - -
NCCB Exchange (UK) Limited - -
1,769,143,439 1,449,457,548
77
31.12.2014 31.12.2013
Taka Taka
28 Rent, taxes, insurance, electricity etc.
Rent :
Office 144,991,820 131,977,820
Clearing house 39,550 39,913
145,031,370 132,017,733
Rates and taxes:
Rates 545,060 2,064,265
Taxes 18,715,077 1,855,275
19,260,137 3,919,540
Insurance:
Cash 5,649,341 5,203,622
Vehicles 1,413,563 1,481,940
Deposits 58,261,862 55,938,844
65,324,766 62,624,406
Electricity :
Electricity - office 51,105,232 43,935,180
Electricity - residence 1,805,140 1,901,206
52,910,372 45,836,386
282,526,645 244,398,065
28(a) Consolidated rent, taxes, insurance, electricity etc.
NCC Bank Limited (Note-28) 282,526,645 244,398,065
NCCB Securities and Financial Services Limited 12,138,076 11,940,819
NCCB Capital Limited 225,196 2,838,240
NCCB Exchange (UK) Limited 4,073,803 4,011,511
298,963,720 263,188,635
29 Legal expenses
Legal charge 17,014,081 14,452,120
Stamp charge 145,755 71,145
Consultancy fee 2,471,810 25,155
Credit Rating fee 258,000 250,000
19,889,646 14,798,420
29 (a) Consolidated legal expenses
NCC Bank Limited (Note-29) 19,889,646 14,798,420
NCCB Securities and Financial Services Limited - -
NCCB Capital Limited - -
NCCB Exchange (UK) Limited - -
19,889,646 14,798,420
30 Postage, stamp and telecommunication
Postage 9,261,535 10,153,336
Telex/swift/internet 7,722,548 6,832,475
Telephone -office 7,256,146 6,849,952
Telephone -residence 3,869,106 3,268,477
28,109,335 27,104,240
78
31.12.2014 31.12.2013
Taka Taka
30(a) Consolidated Postage,stamp and telecommunication
NCC Bank Limited (Note-30) 28,109,335 27,104,240
NCCB Securities and Financial Services Limited 682,169 565,585
NCCB Capital Limited - -
NCCB Exchange (UK) Limited - -
28,791,504 27,669,825
31 Stationery, printing, advertisement etc.
Printing and stationery:
Printed stationery 19,792,171 13,045,487
Security stationery 12,143,290 11,734,291
Petty stationery 12,172,110 12,575,346
44,107,571 37,355,124
Publicity and advertisement 26,712,423 40,280,716
70,819,994 77,635,840
31(a) Consolidated Stationery, printing, advertisement etc.
NCC Bank Limited (Note-31) 70,819,994 77,635,840
NCCB Securities and Financial Services Limited 497,991 488,610
NCCB Capital Limited - -
NCCB Exchange (UK) Limited - -
71,317,985 78,124,450
32 Managing Director's salary & allowances
4,612,903 4,800,000
Festival bonus 800,000 800,000
* Incentive bonus 1,500,000 1,000,000
Entertainment allowance 505,968 360,000
Medical allowance 234,516 720,000
House Rent allowance 1,550,967 1,200,000
9,204,354 8,880,000
* Incentive bonus disbursed for 2014 included Tk.10,00,000/- in favour to our Ex-Managing Director & CEO.
33 Director's fees
1,770,000 1,495,000
33(a) Consolidated Director's fees
NCC Bank Limited (Note-34) 1,770,000 1,495,000
NCCB Securities and Financial Services Limited 190,500 -
NCCB Capital Limited - -
NCCB Exchange (UK) Limited - -
1,960,500 1,495,000
34 Audit fees 150,000 150,000
34(a) Consolidated audit fees
NCC Bank Limited (Note-34) 150,000 150,000 NCCB Securities and Financial Services Limited 29,250 15,000 NCCB Capital Limited 5,750 5,000 NCCB Exchange (UK) Limited - -
185,000 170,000
Basic salary
For attending the meeting of the Board / executive committee/ audit
committee members are paid @ Tk 5,000 per attendance per person
79
31.12.2014 31.12.2013
Taka Taka
35 Repairs, maintenance, amortization and depreciation
Repairs & maintenance :
Repairs & maintenance of fixed assets 129,896,717 72,804,169
Amortization of software 20,663,887 32,674,845
Renovation & maintenance of premises 81,751,104 78,096,712
232,311,708 183,575,726
Depreciation: (Annexure 'D')
Furniture and fixtures 29,531,565 29,902,007
Machinery and equipment 86,773,595 90,393,246
Vehicles 13,976,316 13,204,025
Property/ apartments/Buildings 17,028,158 17,464,778
147,309,634 150,964,056
379,621,342 334,539,782 35(a) Consolidated Repairs, maintenance, amortization and depreciation
NCC Bank Limited (Note-35) 379,621,342 334,539,782 NCCB Securities and Financial Services Limited 6,929,392 8,145,938 NCCB Capital Limited - - NCCB Exchange (UK) Limited 1,704,804 2,072,090
388,255,538 344,757,810
36 Other expenses
Conventional Banking 254,914,885 240,598,299 Off-Shore Banking Unit - -
254,914,885 240,598,299
36.1 Other expenses
Conventional Banking
Entertainment 20,876,969 21,392,506
Car expenses 46,923,333 41,713,401
Paper and periodicals 1,531,445 1,375,548
Trade subscription 7,100,126 16,504,385
Traveling & conveyance 68,299,607 54,821,265
Cash carrying charges 2,225,715 1,739,250
Liveries and uniform 2,331,838 2,344,763
Water sewerage and gas 5,718,735 6,008,547
Medical charges 55,722 428,233
Laundry and cleaning 1,227,353 1,281,336
Training expenses 3,535,630 2,982,627
Business promotion 13,308,583 9,537,693
Donation 10,358,168 20,356,900
Utility charges 9,313,166 9,444,574
Traveling and haltage (directors ) 1,632,000 1,331,446
Refreshment and dinner ( directors ) 1,148,485 1,100,930
Revaluation/loss on BGTB/T.Bill (HFT) 31,981,588 21,455,844
Welfare and recreation 113,000 2,968,375
Other bank charge 7,670,162 4,985,673
CDBL charge 261,733 289,332
Miscellaneous expenses 1,156,930 610,821
Credit card service charge 12,081,822 12,745,070
Sales commission 62,775 3,179,780
Superannuation fund 6,000,000 2,000,000
254,914,885 240,598,299
Off-Shore Banking Unit - -
36(a) Consolidated other expenses
NCC Bank Limited (Note-36) 254,914,885 240,598,299
NCCB Securities and Financial Services Limited 16,194,627 14,676,463
NCCB Capital Limited 21,572 31,142
NCCB Exchange (UK) Limited 9,568,562 7,621,036
280,699,646 262,926,940
80
31.12.2014 31.12.2013
Taka Taka
37 Cash received from other operating activities
Conventional Banking
Other operating income 889,074,338 1,312,001,256
Exchange earning 199,627,853 259,232,444
1,088,702,191 1,571,233,700
Off-Shore Banking Unit - -
1,088,702,191 1,571,233,700
37(a) Consolidated cash received from other operating activities
NCC Bank Limited (Note-35) 1,088,702,191 1,571,233,700
NCCB Securities and Financial Services Limited 3,412,272 3,618,273
NCCB Capital Limited - -
NCCB Exchange (UK) Limited - -
1,092,114,463 1,574,851,973
38 Cash paid for other operating activities
Conventional Banking
Expenses for the year 649,823,712 459,212,953
Add: Opening accrued expenses 3,459,056 5,729,203
Less: Closing accrued expenses (3,873,441) (3,459,056)
649,409,327 461,483,100
Off-Shore Banking Unit
649,409,327 461,483,100
38(a) Consolidated cash paid for other operating activities
NCC Bank Limited (Note-35) 649,409,327 461,483,100
NCCB Securities and Financial Services Limited 33,170,531 30,755,551
NCCB Capital Limited 21,572 2,874,382
NCCB Exchange (UK) Limited 14,865,870 13,631,579
697,467,300 508,744,612
39 Increase/(decrease) of other assets
Conventional Banking
Closing other assets:
Stationery in hand 9,483,941 11,820,590
Stamps and stamped forms in hand 3,170,134 2,715,071
Advance deposit 4,825,320 2,280,080
Advance against rent 146,136,367 158,292,633
Suspense account 59,416,347 22,161,570
Software 52,168,785 66,230,913
Others 3,180,447,581 5,027,613,642 3,455,648,475 5,291,114,499
Opening other assets:
Stationery in hand 11,820,590 17,677,910
Stamps and stamped forms in hand 2,715,071 2,319,838
Advance deposit 2,280,080 2,017,130
Advance against rent 158,292,633 121,152,137
Suspense account 22,161,570 23,582,639
Software 66,230,913 64,914,020
Others 3,146,934,763 3,445,835,915
Income tax paid during the year 723,735,054 1,320,176,856
Increase/(decrease) for the year 4,134,170,674 4,997,676,445
(678,522,199) 293,438,054
Off-Shore Banking Unit - - (678,522,199) 293,438,054
81
31.12.2014 31.12.2013
Taka Taka
39(a) Increase/(decrease) of consolidated other assets
Closing other assets:
Stationery in hand 9,483,941 11,820,590
Stamps and stamped forms in hand 3,170,134 2,715,071
Advance deposit 4,825,320 2,280,080
Advance against rent 146,136,367 158,292,633
Suspense account 59,416,347 22,161,570
Software 52,168,785 66,230,913
Others 952,806,247 2,927,666,668
1,228,007,141 3,191,167,525
Opening other assets:
Stationery in hand 11,820,590 17,677,910
Stamps and stamped forms in hand 2,715,071 2,319,838
Advance deposit 2,280,080 2,017,130
Advance against rent 158,292,633 121,152,137
Suspense account 22,161,570 23,582,639
Software 66,230,913 64,914,020
Others 882,436,453 1,313,600,266
Income tax paid during the year 764,227,838 1,379,690,275
Increase/(decrease) for the year 1,910,165,148 2,924,954,215
(682,158,007) 266,213,310
40 Increase/(decrease) of other liabilities
Conventional Banking
Closing other liabilities
Interest suspense 1,488,795,712 979,431,588
Inter branch transaction account 254,763,149 253,955,174
1,743,558,861 1,233,386,762
Opening other liabilities
Interest suspense 979,431,588 613,309,927
Inter branch transaction account 253,955,174 252,104,212
1,233,386,762 865,414,139
Increase/(decrease) for the year 510,172,099 367,972,623
Off-Shore Banking Unit - -
510,172,099 367,972,623
40(a) Increase/(decrease) of consolidated other liabilities
NCC Bank Limited (Note-40) 510,172,099 367,972,623
NCCB Securities and Financial Services Limited 211,160,199 137,848,791
NCCB Capital Limited - -
NCCB Exchange (UK) Limited - -
721,332,298 505,821,414
41 Cash and cash equivalents
Conventional Banking
Cash in hand 1,173,484,082 1,256,477,852
Balance with Bangladesh Bank and Sonali Bank 7,438,676,826 6,618,784,769
Balance with other bank and financial institutions 2,407,581,410 637,380,180
Prize bonds 4,586,400 4,814,600
11,024,328,718 8,517,457,401
Off-Shore Banking Unit - -
11,024,328,718 8,517,457,401
82
31.12.2014 31.12.2013
Taka Taka
41(a) Consolidated cash and cash equivalents
NCC Bank Limited (Note-41) 11,024,328,718 8,517,457,401
NCCB Securities and Financial Services Limited 3,347,304 13,969,598
NCCB Capital Limited - -
NCCB Exchange (UK) Limited 3,465,575 179,280
11,031,141,597 8,531,606,279
42 Earnings per share (EPS)
Net Profit after tax for the year 1,501,329,218 1,137,847,175
Number of Ordinary share outstanding 802,925,458 802,925,458
Earnings per share (EPS) 1.87 1.42
42 (a) Consolidated earnings per share
Net profit after tax for the year 1,494,682,198 1,140,498,525
Number of ordinary share outstanding 802,925,458 802,925,458
Consolidated earnings per share 1.86 1.42
43 Events after balance sheets dates
Sd/- Sd/- Sd/- Sd/-
Chairman Director Director Managing Director & CEO
Earnings per share have been calculated in accordance with BAS-33 "Earnings per share". Previous year's figures have
been adjusted for the issue of bonus shares during the year.
Earnings per share have been calculated in accordance with BAS-33 "Earnings per share". Previous year's figures have
been adjusted for the issue of bonus shares during the year.
The Board of Directors in its 316th meeting held on 06 May 2015 approved the financial statements and also
authorized the same for public issue. The Board also decided to recommend payment of 10% (ten percent) stock
dividend for the year 2014 for approval by the shareholders in the next ensuing Annual General Meeting (AGM). There
are no other material events for disclosure.
83
Annexure-A
In demand deposit accounts (non interest bearing) with:
Amount in
Foreign
Currency
Conversion
rate per
unit F.C.
Amount in
BDT.
Amount in
Foreign
Currency
Conversion
rate per unit
F.C.
Amount in
BDT.
Standard Chartered Bank, Singapore SGD 113,858.84 58.77 6,691,518 7,794.66 60.70 473,157
Standard Chartered Bank, Tokyo J.YEN 3,329,765.00 0.65 2,153,026 2,943,942.00 0.73 2,157,615
HSBC Bank, New York USD - - - 38,558.33 77.15 2,974,775
Bank of Tokyo Mitsubishi, Japan J.YEN 3,186,327.00 0.65 2,060,279 2,202,925.00 0.73 1,614,524
Standard Chartered Bank, Kolkata ACU - - - 446,139.87 77.15 34,419,691
Banko Itau USD - - - 11,846.88 77.15 913,987
American Express Bank, Colombo ACU 16,711.32 77.90 1,301,812 40,020.73 77.15 3,087,599
Commerze Bank AG EUR 67,065.06 94.05 6,307,281 12,134.19 105.52 1,280,394
United Bank Ltd., Karachi ACU 35,881.34 77.90 2,795,156 67,794.49 77.15 5,230,345
UBAF,Japan J.YEN - - - 416,800.00 0.73 305,473
Nepal Bangladesh Bank, Nepal ACU 189,226.62 77.90 14,740,754 139,106.62 77.15 10,732,076
Standard Chartered Bank, London EUR 15,188,355.33 94.05 1,428,422,291 122,034.37 105.52 12,877,006
AXIS Bank Kolkata ACU 63,005.87 77.90 4,908,157 59,991.94 77.15 4,628,378
Bank of Bhutan, Phuentsholing ACU 5,695.25 77.90 443,660 24,948.43 77.15 1,924,771
Standard Chartered Bank, London GBP 60,432.62 120.39 7,275,664 - - -
Habib American Bank USD 67,211.51 77.90 5,235,777 - - -
USD 1,282,073.92 77.90 99,873,558 - - -
Uni Credio Italiano Spa EUR 675,812.11 94.05 63,558,237 21,650.08 105.52 2,284,506
CAD - - - 25,547.54 72.04 1,840,330
GBP 4,770.52 120.39 574,337 - - -
ACU - - - 348,744.32 77.15 26,905,624
USD 829,759.50 77.90 64,638,265 - - -
Habib Metropolitan Bank ACU 99,877.80 77.90 7,780,481 61,879.44 77.15 4,773,999
WESTPACBC AUD 29,501.00 63.30 1,867,458 12,619.00 68.32 862,083
Mashreq Bank, Kolkata ACU - - - 1,110,037.98 77.15 85,639,430
1,720,627,712 204,925,762
In demand deposit account ( interest bearing) with :
CITI Bank NA USD - - - 1,604,825.79 77.15 123,812,310
Standard Chartered Bank, New York USD 2,808,302.59 77.90 218,766,772 - - -
218,766,772 123,812,310
1,939,394,484 328,738,072
BALANCE WITH OTHER BANKS AND FINANCIAL INSTITUTIONS
Outside Bangladesh - Note 6.2
CITI Bank NA
Sonali Bank, London
Sonali Bank Kolkata
as on December 31, 2014
National Credit and Commerce Bank Limited
Sonali Bank, UK
Name of the BankCurrency
Name
2014 2013
Nova Scotia Canada
84
Annexure-B
SL
No.Name of Company
Face
Value
No. of
Shares Cost value
Quoted
rate per
share as on
31-12-2014
Total Market
Value as at
31.12.2014
Quoted:
1 AB Bank Limited 10 108,337 6,067,093 29.90 3,239,276
2 Agrani Insurance Co. Limited 10 146,107 10,016,563 18.70 2,732,201
3 Al-Arafa Islami Bank Limited 10 2,922,829 73,613,875 14.90 43,550,152
4 Asia Insurance Limited 10 77,339 6,999,050 22.50 1,740,128
5 Asia Pacific General Insurance Limited 10 790,500 30,800,366 19.20 15,177,600
6 Bangladesh Auto Cars Limited 10 18,050 223,907 47.50 857,375
7 Bangladesh General Insurance Co. 10 110,250 5,620,658 21.40 2,359,350
8 Bank Asia Limited 10 1,017,610 25,382,039 16.70 16,994,087
9 Bata Shoe Co. (BD) Limited 10 5,000 3,008,892 1,172.10 5,860,500
10 Bay Leasing & Investment Limited 10 930,584 71,047,947 29.90 27,824,462
11 Beximco Limited 10 57,858 6,685,800 36.40 2,106,031
12 Beximco Pharma Limited 10 384 25,200 58.70 22,541
13 Bangladesh Submarine Cable Company Limited 10 143,500 26,650,837 116.70 16,746,450
14 BSRM Steel Limited 10 69,690 9,225,121 87.70 6,111,813
15 Dacca Dyeing & Manufacturing Co. Limited 10 159,236 6,570,400 14.40 2,292,998
16 Dhaka Electric Supply Company Limited 10 987,254 74,738,248 69.50 68,614,153
17 Confidence Cement 10 35,000 5,298,842 106.70 3,734,500
18 Eagle Star Textile Mills Limited 10 254,700 4,227,951 9.90 2,521,530
19 Eastern Bank Limited 10 230,400 8,994,717 27.20 6,266,880
20 Eastern Cables Limited 10 24,590 277,852 118.40 2,911,456
21 Eastland Insurance Limited 10 185 11,650 34.30 6,346
22 EnboyTextiles Limited 10 772 39,678 51.60 39,835
23 Exim Bank Limited 10 8,437 55,150 11.10 93,651
24 Family Textile 10 52,000 1,572,746 21.90 1,138,800
25 Fareast Life Insurance Co. Limited 10 61,525 7,078,425 75.10 4,620,528
26 First Lease Finance & Investment Limited 10 45,832 1,601,860 19.50 893,724
27 GBP Power Limited 10 132,250 4,324,100 23.30 3,081,425
28 GPH Ispat Limited 10 127,050 8,076,250 45.90 5,831,595
29 Grameenphone Limited 10 50,000 11,564,424 361.90 18,095,000
30 Green Delta Insurance Co. 10 158,878 16,685,130 74.10 11,772,860
31 Green Delta Mutual Fund 10 2,540,000 24,036,815 4.60 11,684,000
32 ICB Islamic Bank Limited 10 400,100 5,490,645 5.50 2,200,550
33 IDLC Finance Limited 10 305,925 27,466,708 74.70 22,852,598
34 Islami Bank Bangladesh Limited 10 3,217 56,132 23.40 75,278
35 Jamuna Bank Limited 10 650,968 19,670,799 12.30 8,006,906
36 Jamuna Oil Company Limited 10 195,300 38,435,918 205.90 40,212,270
37 Karnaphuli Insurance Limited 10 155,505 5,763,830 17.40 2,705,787
38 Khulna Power Co. Limited 10 103,201 5,698,282 57.00 5,882,457
39 Lafarge Surma Cement 10 100,000 4,640,671 123.00 12,300,000
40 Lanka Bangla Finance Limited 10 1,265,881 86,762,006 44.00 55,698,764
41 Makson Spinning Mills Limited 10 241,171 8,706,149 13.20 3,183,457
42 MBL 1st Mutual Fund 10 1,000,000 10,000,000 4.50 4,500,000
43 Meghna Petrolium Limited 10 110,193 16,994,756 211.00 23,250,723
44 Mercantile Bank Limited 10 222,530 4,168,547 13.70 3,048,661
45 Mercantile Insurance Co. Limited 10 563,000 19,424,350 17.20 9,683,600
46 MI Cement Factory Limited 10 4,021 302,231 72.20 290,316
47 MJL Bangladesh Limited 10 46,000 6,360,450 125.00 5,750,000
48 National Bank Limited 10 1,003,776 22,385,193 11.40 11,443,046
49 Navana CNG Limited 10 707,890 61,467,196 65.40 46,296,006
50 NCCBL Mutual Fund-1 10 6,573,129 50,000,000 5.60 36,809,522
National Credit and Commerce Bank Limited
As on 31 December 2014
Investment in Shares
85
SL
No.Name of Company
Face
Value
No. of
Shares Cost value
Quoted
rate per
share as on
31-12-2014
Total Market
Value as at
31.12.2014
51 NCCBL Mutual Fund 15,000,000 150,000,000 5.60 84,000,000
52 NLI 1st Mutual Fund 10 3,300,000 30,000,000 8.00 26,400,000
53 Olympic Industries Limited 10 39,592 511,650 227.30 8,999,262
54 Padma Oil 10 45,804 9,992,625 251.60 11,524,286
55 Peoples Leasing & Financial Services Limited 10 608,088 48,205,403 23.10 14,046,833
56 Power Grid Co. Bangladesh Limited 10 27,500 2,004,762 40.40 1,111,000
57 Phoenix Finance and Investment Limited 10 160,000 6,140,550 26.90 4,304,000
58 Premier Leasing & Finance Limited 10 390,495 13,236,181 10.20 3,983,049
59 Prime Bank Limited 10 495 11,223 19.60 9,702
60 Prime Islami Life Insurance Company Limited 10 4,128 355,508 79.40 327,763
61 Prime Textile Mills Limited 10 10,000 300,000 17.70 177,000
62 Pubali Bank Limited 10 701,790 31,232,515 25.50 17,895,645
63 R.N. Spinning Mills Limited 10 1,256,500 52,019,169 29.00 36,438,500
64 RAK Ceramics (Bangladesh) Limited 10 90 3,046 57.70 5,193
65 Rupali Insurance Limited 10 219,516 9,847,950 23.60 5,180,578
66 Saham Textile 10 35,000 1,193,306 27.80 973,000
67 SEBL 1st Mutual Fund 10 3,300,000 30,000,000 8.00 26,400,000
68 Shahjalal Islami Bank Limited 10 810,524 18,004,087 11.50 9,321,026
69 South East Bank Limited 10 992,250 42,723,519 19.40 19,249,650
70 Square Pharma 10 250,781 44,466,343 258.50 64,826,889
71 Square Textiles Limited 10 361,669 36,160,385 91.00 32,911,879
72 Standard Bank Limited 10 5,124 114,448 12.70 65,075
73 Summit Alliance Port Limited 10 85,314 10,515,325 82.90 7,072,531
74 Summit Power Limited 10 1,343,571 64,153,966 39.30 52,802,340
75 Tallu Spinning 10 9,750 365,191 15.20 148,200
76 Titas Gas Transmission & Distribution Co. Limited 10 1,059,050 93,103,425 79.70 84,406,285
77 Trust Bank 1st Mutual Fund 10 177,663 2,000,000 5.40 959,380
78 United Commercial Bank Limited 10 659,450 20,405,951 29.30 19,321,885
79 Union Capital Limited 10 51,975 2,653,600 21.20 1,101,870
80 Unique Hotel & Resorts Limited 10 266,400 33,649,778 65.90 17,555,760
81 United Airways (BD) Limited 10 1,527,680 34,216,631 8.90 13,596,352
82 Uttara Bank Limited 10 153,049 8,120,373 25.90 3,963,969
1,640,022,359
Un-Quoted
1 Bangladesh Rating Agency Limited 41,659 4,165,900 - 4,165,900
2 Central Depository Bangladesh Limited (CDBL) 913,889 3,138,890 - 3,138,890
3 Dhaka Vegetable Oil Industries Limited 31,920 7,448,523 - -
4 MSF Asset Management Company - 2,000,000 - 2,000,000
5 Summit Purbanchal Power Company Limited 750,000 7,500,000 - 7,500,000
6 Summit Uttaranchal Power Company Limited 500,000 5,000,000 - 5,000,000
7 SWIFT 8 991,199 - 991,199
8 Venture Investment Partner Bangladesh Limited 187,200 18,000,000 - 18,000,000
48,244,512 40,795,989
1,688,266,871 1,192,986,078
Total Unquoted Share :
Grand Total :
Total market value of shares is lesser than cost price by Tk.495,377,836/- against which provision of Tk.495,377,836/- is appearing in
these financial statements.
Total Quoted Share : 1,152,190,089
86
(Amount in Crore taka)
2013
TakaTotal Total
Funded Non-Funded Amount Amount
1 Abul Khair Steel Industries Ltd. 133.15 193.33 326.48 334.01
2 NCCB Securities & Financial Services Limited 176.07 52.00 228.07 241.17
3 Meghna Group - - - 139.69
4 Ziri Subader Steel Re-Rolling Mills 44.56 139.94 184.50 221.81
5 Saad Musa Home Tex & Clothing Ltd. 145.43 66.17 211.60 231.07
6 Partex Group 190.22 32.43 222.65 217.39
7 BSRM Steel 136.38 113.21 249.59 160.59
8 Deshbandhu Sugar Mills Ltd. - - - 211.88
9 Metro Group (Best Holdings Ltd.) 159.02 - 159.02 -
10 Max Pre-Stress & Max Automobiles Ltd. 100.13 98.48 198.61 -
11 Kabir Steel Re-Rolling Mills Ltd. 115.72 128.87 244.59 -
12 DAF P.P. Ind. & allied concern 141.28 30.87 172.15 -
13 Doreen Power Generation & Systems Ltd. 166.41 260.07 426.48 -
Grand -Total 1,508.37 1,115.37 2,623.74 1,757.61
As on 31 December 2014
Annexure-C
Sl.
No
Name of Clients 2014
Taka
Outstanding
National Credit and Commerce Bank LimitedStatement of Large Loan Exposure made during the year 2014
more than 10% of Total Capital of the Bank (Note-9.7)
87
Annexure-D
Balance on
1 January -
2014
Additions
during the year
(Disposals) /
adjustments
during the
year
Balance at 31
December
2014
Balance on
1 January-
2014
Charge for
the year
( On
Disposals)/
adjustments
during the
year
Balance at
31
December
2014
Taka Taka Taka Taka Taka Taka Taka Taka Taka
Furniture & fixture 428,887,682 78,266,436 (7,910,481) 499,243,637 172,289,548 29,531,565 (5,557,927) 196,263,186 302,980,451
Machinery & equipment 710,488,752 330,851,184 (5,782,695) 1,035,557,241 397,993,026 86,773,595 (3,669,159) 481,097,462 554,459,779 Building (Head Office premise on Land - 1) - 570,124,689 570,124,689 - - - - 570,124,689 Land - I - Head Office Premise 95,284,000 - - 95,284,000 - - - 95,284,000
Land - II - Head Office Premise (with Structure) 24,709,834 - - 24,709,834 273,322 50,355 - 323,677 24,386,157
Land - III Premise of Dhanmondi Branch 26,699,950 - - 26,699,950 4,063,690 549,107 - 4,612,797 22,087,153
Land - IV Premise of Islampur Branch 47,812,834 - - 47,812,834 5,082,056 1,055,769 - 6,137,825 41,675,009
Land -V - Premise of Savar Branch 26,021,474 - - 26,021,474 2,831,938 521,738 - 3,353,676 22,667,798
Land - V1 - Premise of Bijoynagar Branch 53,085,456 - - 53,085,456 6,247,256 1,150,955 - 7,398,211 45,687,245 Land - V11 - Premise of Pragoti Sarani Branch 62,115,010 - - 62,115,010 5,351,497 1,419,088 - 6,770,585 55,344,425
Land - V111 - Premise of Uttara Branch 70,347,200 - - 70,347,200 5,324,080 1,625,578 - 6,949,658 63,397,542
Land - 1X -Premise of Agrabad Branch 60,682,473 - - 60,682,473 4,499,933 1,404,564 - 5,904,497 54,777,976
Land - X -Premise of Elephant Road Branch 87,386,268 - - 87,386,268 6,257,146 1,978,603 - 8,235,749 79,150,519
Land-XI- Premise of Mitford Branch 30,004,115 - - 30,004,115 1,540,987 543,078 - 2,084,065 27,920,050 Land-XI1- Premise of O. R. Nizam Road Branch 136,811,525 - - 136,811,525 7,133,737 3,214,445 - 10,348,182 126,463,343
Vehicles 95,750,888 9,147,542 (6,753,714) 98,144,716 61,239,759 13,976,316 (6,753,710) 68,462,365 29,682,351
Sub-total 1,956,087,461 988,389,851 (20,446,890) 2,924,030,422 680,127,975 143,794,756 (15,980,796) 807,941,935 2,116,088,487
Land -I -Premise of Head Office 79,816,000 - - 79,816,000 - - - - 79,816,000
Land - II - Head Office Premise (with Structure) 240,267,348 - - 240,267,348 - - - - 240,267,348
Land - III Premise of Dhanmondi Branch 76,152,845 - - 76,152,845 4,711,309 1,786,038 - 6,497,347 69,655,498
Land - IV Premise of Islampur Branch 9,472,401 - - 9,472,401 236,811 230,890 - 467,701 9,004,700
Land - V Premise of Saver Branch 11,895,874 - - 11,895,874 297,396 289,962 - 587,358 11,308,516
Land - VI Premise of Bijoynagar Branch 46,893,792 - - 46,893,792 1,172,344 1,143,036 - 2,315,380 44,578,412
Land - VII Premise of Pragoti Sarani Branch 2,664,720 - - 2,664,720 66,624 64,952 - 131,576 2,533,144
Sub-total 467,162,980 - - 467,162,980 6,484,484 3,514,878 - 9,999,362 457,163,618
December -2014 Grand total 2,423,250,441 988,389,851 (20,446,890) 3,391,193,402 686,612,459 147,309,634 (15,980,796) 817,941,297 2,573,252,105
December -2013 2,297,730,438 149,337,917 (23,817,914) 2,423,250,441 554,145,004 150,964,056 (18,496,601) 686,612,459 1,736,637,982
National Credit and Commerce Bank Limited
Cost Depreciation
Re-valuation Depreciation
Particulars
Fixed Assets Schedule as at 31 December 2014
Written Down
Value (WDV)
at 31
December
2014
88
Amount in
Foreign
Currency
Conversion
rate per unit
FC
Amount in
BDT.
Amount in
Foreign
Currency
Conversion
rate per unit
FC
Amount in
BDT.
ICICI Bank, HKK USD 428,986.03 78.90 33,846,998 272,691.57 78.15 21,310,846
ICICI Bank, Kolkata ACU 239,062.04 78.90 18,861,995 290,835.46 78.15 22,728,791
Mashreq Bank ,Kolkata ACU 119,248.91 78.90 9,408,739 - - -
Sonali Bank London USD 78.15 - 114,855.25 78.15 8,975,938
Sonali Bank,Kolkata ACU 87,005.25 78.90 6,864,714
Habib American Bank USD 78.15 - 680.84 78.15 53,208
Mashreq Bank N.Y USD 359,667.53 78.90 28,377,768 41,466.93 78.15 3,240,641
Wachovia NA USD 332,491.43 78.90 26,233,574 201,289.53 78.15 15,730,777
Jpmorgan Chess Bank USD 78.15 - 13,701.60 78.15 1,070,780
Standard Chartered Bank, Kolkata ACU 568,637.27 78.90 44,865,481
Standard Chartered Bank, N.Y USD 78.15 - 2,353,333.07 78.15 183,912,979
Standard Chartered Bank, London GBP 131.04 - 17,784.65 131.04 2,330,522
168,459,269 259,354,482
Annexure - E
NATIONAL CREDIT AND COMMERCE BANK LTD. Borrowings from other banks, Financial Institutions and agents.
(Outside Bangladesh) - Note -12
As on December 31, 2014
Name of the Bank
20132014
Currency
Name
89
Annexure-F
Accounting
Year
Assessment
Year
Current Tax
Provision as per
accounts
Tax Liability as
per Assessment
Order/Return
Excess/
(Shortage)
provision
Advance
Income Tax
paid
Dues/
(Refund) Remarks
1 2 3 4 5=(3-4) 6 7=(4-6) 8
Up to 2000 - 142,334,958 213,676,031 (71,341,073) 215,471,134 (1,795,103) Assessment Completed
2001 2002-2003 119,081,542 146,692,885 (27,611,343) 139,829,928 6,862,957 Appeal filed to High Court Division
2002 2003-2004 177,842,495 177,842,495 - 177,842,495 - Assessment Completed
2003 2004-2005 255,478,335 86,888,016 168,590,319 159,999,990 (73,111,974) Appeal filed to High Court Division
2004 2005-2006 221,398,901 222,971,622 (1,572,721) 226,708,126 (3,736,504) Assessment Completed
2005 2006-2007 322,779,734 322,779,734 - 322,779,734 - Assessment Completed
2006 2007-2008 574,346,529 571,482,877 2,863,652 547,620,741 23,862,136 Appeal filed to High Court Division
2007 2008-2009 658,972,487 765,003,802 (106,031,315) 739,192,234 25,811,568 Appeal filed to High Court Division
2008 2009-2010 886,681,988 842,159,000 44,522,988 828,728,119 13,430,881 Appeal filed to High Court Division
2009 2010-2011 780,131,543 834,509,903 (54,378,360) 786,055,482 48,454,421 Appeal filed to High Court Division
2010 2011-2012 1,082,996,677 1,335,142,229 (252,145,552) 1,058,426,103 276,716,126 Appeal filed to High Court Division
2011 2012-2012 1,423,823,445 1,529,029,990 (105,206,545) 1,396,639,461 132,390,529 Appeal pending with Commissioner of Taxes (Appeal)
2012 2013-2014 1,311,459,496 1,331,302,532 (19,843,036) 1,331,302,532 - Return filed u/s-82BB but assessment order yet to receive.
2013 2014-2015 1,204,981,256 1,063,429,734 141,551,522 1,063,429,734 - Return filed u/s-82BB but assessment order yet to receive.
2014 2015-2016 869,355,654 749,661,486 119,694,168 539,490,215 - Return to be filed on 15 July 2015.Total 9,162,309,386 9,442,910,850 (160,907,296) 8,994,025,813 448,885,037
National Credit and Commerce Bank LimitedCorporate Tax Position
as on 31 December 2014
90
Total Risk Weighted Assets (RWA)
A. Credit Risk:
On-Balance Sheet
Off-Balance Sheet
B. Market Risk
C. Operational Risk
Risk
Weight
Exposure Risk
Weighted
Assets
Exposure Risk
Weighted
Assetsa) Cash 0% 117.35 - 125.65 -
b) Claims on Bangladesh Government and Bangladesh Bank 0% 2790.54 - 2428.13 -
Claims on other Sovereigns & Central Banks 0% - - - -
c) Claims on Bank for International Settlements International
Monetary Fund and European Central Bank 0% - - - -
Claims on Multilateral Development Banks (MDBs) 0% - - - -
i) IBRD, IFC, ADB, AFDB, EBRD, IADB, EIB, EIF, NIB, CDB,
CEDB 0% - - - -
1 20% - - - -
2,3 50% - - - -
4,5 100% - - - -
6 150% - - - -
Unrated 50% - - - -
1 20% - - - -
2,3 50% - - - -
4,5 100% - - - -
6 150% - - - -
Unrated 50% - - - -
Claims on Banks and NBFIs
1 20% - - - -
2,3 50% - - - -
4,5 100% - - - -
6 150% - - - -
Unrated 100% 68.28 68.28 71.47 71.47
ii) Original maturity up to 3 months 20% 373.17 74.63 186.2 37.24
1 20% 410.97 82.19 412.7 82.54
2 50% 1432.05 716.03 1081.87 540.94
3,4 100% 981.34 981.34 876.13 876.13
5,6 150% - - - -
Unrated 125% 728.10 910.13 3873.81 4,842.26
SME 1 20% - - - -
SME 2 40% 33.85 13.54 - -
SME 3 60% 300.16 180.10 - -
SME 4 80% - - - -
SME 5 120% - - - -
SME 6 150% - - - -
Unrated 75% 72.44 54.33 - -
(Small enter-
prise & <BDT
3.00M)
Unrated 100% 2,590.89 2,590.89 - -
(Small enter-
prise having>
BDT 3.00M
& medium
enterprise)
PSE N/A - - - -
Banks & NBFIs N/A - - - -
Corporate N/A 118.94 12.25 153.10 19.39
Retail & Small N/A 242.12 8.11 207.14 9.15
Cons.Finance N/A - - - -
Res. Property N/A - - - -
Comm. Real estate N/A - - - -
1,900.94
8,070.97
a. i) Risk Weighted Assets for Credit Risk On Balance Sheet Exposure
8,637.57
1,663.84
SL.
No.
Particulars Bangladesh Bank's
Rating Grade
December 31,2014
Notes to the Financial Statements
Particulars December 31,2014 December 31,2013
Figure in Crore where applicable
Computation of Risk Weighted Assets (RWA)-Solo Basis as on 31 December 2014
December 31,2013
Annexure-G
National Credit and Commerce Bank Limited
959.60
11,782.00
283.90 519.00
1,012.14
Total Risk Weighted Assets (A+B+C) 11,265.95
d)
ii) Other MDBs
e) Claims on Public Sector Entities ( other than Government) in
Bangladesh
f)
i) Original maturity over 3 months
g) Claims on Corporate
i) Claims under Credit Risk Mitigation
Claims on SMEh)
91
j) Claims categorized as retail portfolio (excluding SME
Consumer Finance & Staff loan) up to 1 crore 75% 126.56 94.92 574.63 430.97
k) Consumer Loan 100% 64.81 64.81 60.76 60.76
l) Claims fully secured by residential property 50% 125.36 62.68 125.68 62.84
m) Claims fully secured by commercial real estate 100% 382.65 382.65 344.24 344.24
n) 1. Past due claims (Risk weights are to be assigned net of
specific provision)Where specific provisions are less than 20 percent of the
outstanding amount of the past due claim 150% 467.68 701.52 176.65 264.98
Where specific provisions are no less than 20 percent of the
outstanding amount of the past due claim. 100% 69.68 69.68 44.15 44.15
Where specific provisions are more than 50 percent of the
outstanding amount of the past due claim. 50% 59.16 29.58 55.67 27.84
2. Claims fully secured against residential property that are
past due for more than 90 days and /or impaired and specific
provision held there-against is less than 20% of outstanding
amount. 100% 35.33 35.33 4.45 4.45
3. Loans and Claims fully secured against residential property
that are past due for more than 90 days and or impaired and
specific provision held there-against is more than 20% of
outstanding amount. 75% 4.64 3.48 27.42 20.57
o) Capital Market Exposures 125% 176.12 220.15 189.08 236.35
p) Unlisted equity investments and regulatory Capital
instruments issued by other banks ( Other than those
deducted from capital) held in the banking book 125% 246.03 307.54 258.92 323.65
q) Investments in venture capital 150% - - - -
r) Investments in premises, plant and equipment and all other
fixed assets100% 167.62 167.62 173.66 173.66
s) Claims on all fixed assets under operating lease 100% - - - -
t) All other assets:
i) Claims on GoB & BB 0% 76.72 - 188.80 -
ii) Staff Loans 20% 65.78 13.16 70.80 14.16
iii) Cash items in Process of Collection 20% 0 - 0.01 0.00
iv) Claims on offshore Banking Unit 100% 37.07 37.07 0 -
iv) Other assets (not specified above) [net of specific
provision if any 100% 188.97 188.97 149.84 149.84
Total 12554.38 8,070.97 11860.96 8,637.57
a ii). Risk Weighted Assets for Off-balance sheet exposure
Risk
Weight
Exposure Risk
Weighted
Assets
Exposure Risk
Weighted
Assetsa. Claims on Bangladesh Government and Bangladesh Bank 0% - - - -
b. Claims on other Sovereigns & Central Banks 0% - - - -
c. Claims on Bank for International Settlements International
Monetary Fund and European Central Bank 0% - - - -
Claims on Multilateral Development Banks (MDBs) 0% - - - -
i) IBRD, IFC, ADB, AFDB, EBRD, IADB, EIB, EIF, NIB, CDB,
CEDB 0% - - - -
1 20% - - - -
2,3 50% - - - -
4,5 100% - - - -
6 150% - - - -
Unrated 50% - - - -
1 20% - - - -
1,2 50% - - - -
4,5 100% - - - -
6 150% - - - -
Unrated 50% - - - -
Claims on Banks and NBFIs - - - -
1 20% - - - -
2,3 50% - - - -
4,5 100% - - - -
6 150% - - - -
Unrated 100% - - - -
ii) Original maturity less than 3 months 20% - - - -
Claims on Public Sector Entities ( other than Government) in
Bangladesh
d.
f.
i) Original maturity over 3 months
December 31,2014 December 31,2013SL.
No.
Particulars Bangladesh Bank's
Rating Grade
ii) Other MDBs
e.
92
1 20% 265.97 53.19 114.84 22.97
2 50% 694.97 347.49 342.77 171.39
3,4 100% 626.93 626.93 371.93 371.93
5,6 150% - - - -
Unrated 125% 336.19 420.24 1,004.32 1,255.40
SME 1 20% - - - -
SME 2 40% - - - -
SME 3 60% 29.69 17.81 - -
SME 4 80% - - - -
SME 5 120% - - - -
SME 6 150% - - - -
Unrated 75% - - - -
(Small enter-
prise & <BDT
3.00M)Unrated 100% - - - -
(Small enter-
prise having>
BDT 3.00M& medium
enterprise)
i) Claims against retail portfolio and small & medium enterprise
(excluding consumer loan) 75% 264.23 198.17 105.67 79.25
j) Consumer Loan 100% - - - -
k) Claims fully secured by residential property 50% - - - -
l) Claims fully secured by commercial real estate 100% - - - -
m Investments in venture capital 150% - - - -
n All other assets 100% - - - -
Total 2,217.98 1,663.84 1,939.53 1,900.94
b. Risk Weighted Assets for Market Risk Balance Sheet Exposure
December
31,2014
December
31,2013
A. Interest Rate Related Instruments - 9.41 9.41 94.10 1.90
B. Equities 11.55 11.55 23.10 231.00 250.40
C. Foreign Exchange Position - 19.39 19.39 193.90 31.60 Total (A+B+C) 11.55 40.35 51.90 519.00 283.90
c. Risk Weighted Assets for Operational Risk
December
31,2014
December
31,2013
A. 2012 660.03
B. 2013 650.75
C. 2014 713.47
Total Risk Weighted Assets (RWA)
C. Operational Risk 1,095.90 1,015.40
285.22
Off-Balance Sheet
Total Risk Weighted Assets (A+B+C) 11,433.92 11,890.28
8,688.72
Gross Income
Average
Gross
Income
Capital Charge
for
Operational
Risk
Risk Weighted Assets against
Operational Risk
1,900.94
On-Balance Sheet 8,148.37
B. Market Risk 525.81
1,663.84
Computation of Risk Weighted Assets (RWA)-Consolidated Basis
Particulars December 31,2014 December 31,2013A. Credit Risk:
Capital Charge for
Specific Risk
Capital
Charge for
General
Market
Risk
Sl.
No
674.75 101.21
Total Capital
Charge for
Market Risk
1,012.14 959.60
SL.
No.Year
Risk Weighted Assets against
Market Risk
Particulars
Claims on SMEh)
g) Claims on Corporate
93
Risk
WeightExposure
Risk
Weighted
Assets
Exposure
Risk
Weighted
Assetsa) Cash 0% 117.35 - 125.65 -
b) Claims on Bangladesh Government and Bangladesh Bank 0% 2790.54 - 2428.13 -
Claims on other Sovereigns & Central Banks 0% - - - -
c) Claims on Bank for International Settlements International
Monetary Fund and European Central Bank 0% - - - -
Claims on Multilateral Development Banks (MDBs) 0% - - - -
i) IBRD, IFC, ADB, AFDB, EBRD, IADB, EIB, EIF, NIB, CDB,
CEDB 0% - - - -
1 20% - - - -
2,3 50% - - - -
4,5 100% - - - -
6 150% - - - -
Unrated 50% - - - -
1 20% - - - -
2,3 50% - - - -
4,5 100% - - - -
6 150% - - - -
Unrated 50% - - - -
Claims on Banks and NBFIs
1 20% - - - -
2,3 50% - - - -
4,5 100% - - - -
6 150% - - - -
Unrated 100% 68.28 68.28 71.47 71.47
ii) Original maturity up to 3 months 20% 374.40 74.88 187.66 37.53
1 20% 410.97 82.19 412.7 82.54
2 50% 1432.05 716.03 1081.87 540.94
3,4 100% 981.34 981.34 876.13 876.13
5,6 150% - - - -
Unrated 125% 728.10 910.13 3873.81 4,842.26
SME 1 20% - - - -
SME 2 40% 33.85 13.54 - -
SME 3 60% 300.16 180.10 - -
SME 4 80% - - - -
SME 5 120% - - - -
SME 6 150% - - - -
Unrated 75% 72.44 54.33 - -
(Small enter-
prise & <BDT
3.00M)
Unrated 100% 2,590.89 2,590.89 - -
(Small enter-
prise having>
BDT 3.00M
& medium
enterprise)
PSE N/A - -
Banks & NBFIs N/A - -
Corporate N/A 118.94 12.25 153.10 19.39
Retail & Small N/A 242.12 8.11 207.14 9.15
Cons.Finance N/A - - - -
Res. Property N/A - - - -
Comm. Real estate N/A - - - -
j) Claims categorized as retail portfolio (excluding SME
Consumer Finance & Staff loan) up to 1 crore 75% 126.56 94.92 574.63 430.97
k) Consumer Loan 100% 64.81 64.81 60.76 60.76
l) Claims fully secured by residential property 50% 125.36 62.68 125.68 62.84
m) Claims fully secured by commercial real estate 100% 382.65 382.65 344.24 344.24
n) 1. Past due claims (Risk weights are to be assigned net of
specific provision)Where specific provisions are less than 20 percent of the
outstanding amount of the past due claim 150% 467.68 701.52 176.65 264.98
Where specific provisions are no less than 20 percent of the
outstanding amount of the past due claim. 100% 69.68 69.68 44.15 44.15
Where specific provisions are more than 50 percent of the
outstanding amount of the past due claim. 50% 59.16 29.58 55.67 27.84
2. Claims fully secured against residential property that are
past due for more than 90 days and /or impaired and specific
provision held there-against is less than 20% of outstanding
amount. 100% 35.33 35.33 4.45 4.45
g) Claims on Corporate
i) Claims under Credit Risk Mitigation
e) Claims on Public Sector Entities ( other than Government) in
Bangladesh
f)
i) Original maturity over 3 months
a. i) Risk Weighted Assets for Credit Risk On Balance Sheet Exposure
SL.
No.Particulars
Bangladesh Bank's
Rating Grade
December 31,2014 December 31,2013
d)
ii) Other MDBs
Claims on SMEh)
94
3. Loans and Claims fully secured against residential property
that are past due for more than 90 days and or impaired and
specific provision held there-against is more than 20% of
outstanding amount. 75% 4.64 3.48 27.42 20.57
o)Capital Market Exposures 125% 460.74 575.93 451.41 564.26
p) Unlisted equity investments and regulatory Capital
instruments issued by other banks ( Other than those
deducted from capital) held in the banking book 125% 20.18 25.23 33.08 41.35
q)Investments in venture capital 150% - - - -
r) Investments in premises,plant and equipment and all other
fixed assets 100% 169.33 169.33 175.92 175.92
s) Claims on all fixed assets under operating lease 100% - - - -
t) All other assets:
i) Claims on GoB & BB 0% 97.35 - 205.38 -
ii) Staff Loans 20% 65.78 13.16 70.80 14.16
iii) Cash items in Process of Collection 20% - - 0.01 0.00
iv) Claims on offshore banking Unit 100% 37.07 37.07 2.04 2.04
v) Other assets (not specified above) [net of specific provision
if any 100% 190.96 190.96 150.79 150.79
Total 12,638.71 8,148.37 11,920.74 8,688.72
a ii). Risk Weighted Assets for Off-balance sheet exposure
Risk Exposure Risk Exposure Risk
a. Claims on Bangladesh Government and Bangladesh Bank 0% - - - -
b. Claims on other Sovereigns & Central Banks 0% - - - -
c. Claims on Bank for International Settlements International
Monetary Fund and European Central Bank 0% - - - -
Claims on Multilateral Development Banks (MDBs) 0% - - - -
i) IBRD, IFC, ADB, AFDB, EBRD, IADB, EIB, EIF, NIB, CDB,
CEDB 0% - - - -
1 20% - - - -
2,3 50% - - - -
4,5 100% - - - -
6 150% - - - -
Unrated 50% - - - -
1 20% - - - -
1,2 50% - - - -
4,5 100% - - - -
6 150% - - - -
Unrated 50% - - - -
Claims on Banks and NBFIs - - - -
1 20% - - - -
2,3 50% - - - -
4,5 100% - - - -
6 150% - - - -
Unrated 100% - - - -
ii) Original maturity less than 3 months 20% - - - -
1 20% 265.97 53.19 114.84 22.97
2 50% 694.97 347.49 342.77 171.39
3,4 100% 626.93 626.93 371.93 371.93
5,6 150% - - - -
Unrated 125% 336.19 420.24 1,004.32 1,255.40
h) Claims on SME SME 1 20% - - - -
SME 2 40% - - - -
SME 3 60% 29.69 17.81 - -
SME 4 80% - - - -
SME 5 120% - - - -
SME 6 150% - - - -
Unrated 75% - - - -
(Small enter-
prise & <BDT
3.00M)
g) Claims on Corporate
e. Claims on Public Sector Entities ( other than Government) in
Bangladesh
f.
i) Original maturity over 3 months
December 31,2014 December 31,2013
d.
ii) Other MDBs
Bangladesh Bank's
Rating GradeParticulars
SL.
No.
95
Unrated 100% - - - -
(Small enter-
prise having>
BDT 3.00M
& medium
enterprise)
i) Claims against retail portfolio and small & medium enterprise
(excluding consumer loan)75% 264.23 198.17 105.67 79.25
j) Consumer Loan 100% - - - -
k) Claims fully secured by residential property 50% - - - -
l) Claims fully secured by commercial real estate 100% - - - -
m Investments in venture capital 150% - - - -
n All other assets 100% - - - -
Total 2,217.98 1,663.84 1,939.53 1,900.94
b. Risk Weighted Assets for Market Risk Balance Sheet Exposure
December
31,2014
December
31,2013
A. Interest Rate Related Instruments - 9.41 9.41 94.10 1.90
B. Equities 11.65 11.65 23.30 233.00 251.62
C. Foreign Exchange Position - 19.87 19.87 198.70 31.70
Total (A+B+C) 11.65 40.93 52.58 525.81 285.22
c. Risk Weighted Assets for Operational Risk
December
31,2014
December
31,2013
A. 2012 710.47
B. 2013 696.75
C. 2014 784.58
1,095.90 1,015.40
Gross Income
Average
Gross
Income
730.6 109.59
Capital
Charge for
Operational
Risk
Risk Weighted Assets
against Operational Risk
Total Capital
Charge for
Market Risk
Risk Weighted Assets
against Market Risk
SL.
No.Year
Sl.
NoParticulars
Capital Charge for
Specific Risk
Capital
Charge
for
General
Market
Risk
96
SL.
No.Name of Directors
Status with
the
NCCBL
Name of the firms/companies in which
interested as proprietor, partner, Director,
managing agent, guarantor, employee etc.
% of
interest
1 Alhaj Md. Nurun Newaz Chairman Royal International, Proprietor 100.00%
Electro Mart Limited, Chairman 17.50%
Trade International Marketing Ltd., Chairman 20.00%
Newaz International Ltd., Managing Director 35.00%
The Royal Bengal Agency, Proprietor 100.00%
Central Insurance Company Limited, Shareholder 5.00%
Electro Appliances Mfg.Industries Limited , Chairman 30.00%
2 Mr. A.S.M. Main Uddin Monem Vice Chairman
Abdul Monem Limited, Director 15.00%
Abdul Monem Sugar Refinery Limited, Director 12.95%
Igloo Foods Limited, Director 15.38%
AM Securities & Financial Services Limited.,Managing Director 93.33%
AM Energy Limited, Director 15.00%
Igloo Ice Cream Limited, Director 16.67%
Novus Pharmaceuticals Limited. ,Managing Director 14.93%
Igloo Dairy Limited, Director 15.38%
AM Channel Limited, Director 25.00%
AM Auto Bricks Limited, Director 20.00%
AM Bran Oil Company Limited, Director 9.80%
AM Asphalt & Ready Mix Limited, Director 20.00%
AM Foods Limited, Director 25.00%
AM Development limited, Director 25.00%
AML Power Limited. ,Director 10.00%
AML Power Infotech Limited, Director 10.00%
AM Pharma Limited., Managing Director 18.00%
AM Beverage Limited. ,Director 20.00%
AM Consulting Limited, Director 33.33%
MM Holdings Limited, Director 98.00%
AM Capital & Investment Limited, Director 94.00%
AM Agricultural Products Limited, 33.33%
Millennium Cement Limited 10.00%
Joinab Enterprise, Proprietorship
Joinab Overseas, Proprietorship
Pragati Insurance Company Limited, Shareholder 0.20%
3 Mr. Md. Abdul Awal Director Unique Steel Industries Ltd., Managing Director 8.33%
Steel Enterprise Ltd, Managing Director 0.49%
Prime Steel Re-relling Mills Ltd,Managing Director 0.27%
Jahanabad Ship Breakers Ltd, Chairman 50.00%
Prime Textile Spinning Mills Ltd,Managing Director 6.12%
Prime Peoples Property Ltd,Managing Director 14.40%
Doleswar Iron & Engg. Works Ltd, Managing Director 6.00%
Prime Trans National Ltd,Managing Director 0.20%
Prime World Trade Ltd, Managing Director 80.00%
Prime Super Printing Mills Ltd, Managing Director 80.00%
Prime Synthetic Yarn Mills Ltd, Managing Director 80.00%
Prime Dyeing & Finishing Mills Ltd, Managing Director 80.00%
Prime Blended Yarn Mills Ltd, Managing Director 99.91%
Prime Weaving Mills Ltd, Managing Director 80.00%
Prime Composite Mills Ltd,Managing Director 6.51%
Prime Dairy & Poultry Ind. Ltd,Managing Director 80.00%
Prime Fisheries Industries Ltd, Managing Director 80.00%
Prime Melange Yarn Mills Ltd, Managing Director 12.50%
Prime Knitwears Ltd., Managing Director 60.00%
Prime Information Technology Ltd, Managing Director 50.00%
Prime Group of Industries Ltd, Managing Director 20.00%
Annexure-H
National Credit and Commerce Bank Limited
Statement of the Name of the Directors and the entities in which they have interest as on 31
December 2014
97
SL.
No.Name of Directors
Status with
the
NCCBL
Name of the firms/companies in which
interested as proprietor, partner, Director,
managing agent, guarantor, employee etc.
% of
interest
Mr. Md. Abdul Awal Director Prime Knit Fabrics Ltd, Managing Director 75.00%
Prime Textile Fabrics Ltd, Managing Director 75.00%
Prime Energy Ltd., Managing Director 35.00%
Prime Fine Yarn Mills Ltd, Managing Director 60.00%
Prime Ship Breakers Ltd, Chairman 25.93%
Prime Ship Recycling Ltd, Chairman 15.50%
Prime FSS Ship Breakers Ltd, Chairman 20.00%
Prime Steel Mills Ltd. Managing Director 10.00%
Prime Ship Building Ltd., Managing Director 50.00%
Prime Financial Consultants & Equities Ltd, Chairman 48.29%
4 Mr.Amjadul Ferdous Chowdhury Director B.S.A. Garments Ind. (Pvt.) Limited, Managing Director 19.00%
B.S.A. Fashion Limited, Managing Director 50.00%
B.S.A. Apparels Limited, Managing Director 25.00%
Vanguard Garments Ltd., Managing Director 50.00%
Vanguard Fashion Ltd., Managing Director 15.00%
Vanguard Shares & Securities Ltd., Director 6.00%
Vanguard Packages Limited, Managing Director 33.00%
Vanguard Dresses Limited, Managing Director 33.00%
Glare Fashion Limited, Managing Director 50.00%
Royal Cement Limited, Chairman 10.00%
Brave Royal Shipping Limited, Managing Director 20.00%
Vanguard Maritime Limited, Chairman 30.00%
Royal P. P Bags Limited, Chairman 15.00%
Harrods Garments Ltd., Director 25.00%
Vanguard Designers Limited, Chairman 40.00%
BSA Shipping Limited, Director 30.00%
S.N.Sports Wear Limited, Director 19.00%
Glare Trading, Importer of Ahmed Foods , Proprietor 100.00%
5 Mr. S.M. Abu Mohsin Director Continental Insurance Limited, Chairman 3.77%
Alliance Deep Sea Fishings Ltd, Chairman 12.50%
Brothers Oxygen Ltd., Managing Director 80.00%
Food of Accommodation Limited, Chairman 33.32%
6 Mr. Abdus Salam Director The Bengal Electric Ltd., Managing Director 69.00%
Multipul Equipment & Engineering Ltd., Managing Director 60.00%
Gangatia Fisheries Ltd., Managing Director 20.00%
Bengal Shipyard Ltd., Managing Director 25.00%
7 Mrs. Sohela Hossain Director Mir Akhter Hossain Ltd., Director 15.00%
Mir Cement Ltd., Director 25.00%
Mir Real Estate Ltd., Director 25.00%
Mir Concrete Products Ltd.,Director 25.00%
Mir Telecom Ltd., Chairman 12.37%
Mir Power Ltd., Director 25.00%
Mir Group of Companies Ltd., Director 25.00%
Mir Supply Chain Ltd., Director 25.00%
Rego Communications Ltd.,Director 25.00%
8 Mr. Yakub Ali Director Ali Fashion Limited, Chairman 23.81%
Anowara Apparels Limited, Chairman 22.22%
Anowara Fashions Limited, Chairman 21.83%
Anowara Paper Mills Limited, Chairman 35.00%
Bangladesh Fertilizer & Agro Chemicals Limited, Director 18.35%
Diamond Cement Limited, Chairman 11.56%
Habib Printers and Publisher Limited, Chairman 33.35%Habib Share & Securities Limited, Chairman & Managing Director 16.67%
Habib Sons, Managing Partner 1:3
Habib Steels Limited, Chairman 33.34%
HG Aviation Limited, Director 8.33%
Legacy Fashion Ware Limited., Chairman 10.60%
Maam Textile Mills Limited, Chairman 16.00%
MTS Re-rolling Mills Limited, Chairman 23.34%
Mudys Navigation Limited, Chairman 35.00%
Noor Garments Limited, Chairman 31.25%
Regent Fabrics Limited, Chairman 16.67%
Regent Power Limited, Chairman 13.33%
98
SL.
No.Name of Directors
Status with
the
NCCBL
Name of the firms/companies in which
interested as proprietor, partner, Director,
managing agent, guarantor, employee etc.
% of
interest
Mr. Yakub Ali Director Regent Spinning Mills Limited., Chairman 1.09%
Regent Textile Mills Limited., Chairman 22.11%
Regent Weaving Limited, Chairman 33.33%
Regent Energy and Power Limited, Chairman 0.02%
Saims Superior Limited, Chairman 1.00%
Valiant Fashion Ware Limited, Chairman 16.67%
Valiant Garments Limited, Chairman 16.84%
9 Mr. Md. Abul Bashar Director Unique Steel Industries Ltd., Dy.Managing Director 4.17%
Steel Enterprise Ltd, Dy.Managing Director 0.01%
Prime Steel Re-relling Mills Ltd,Dy.Managing Director 0.01%
Jahanabad Ship Breakers Ltd, Managing Director 10.00%
Prime Textile Spinning Mills Ltd,Dy.Managing Director 5.00%
Prime Peoples Property Ltd,Dy.Managing Director 0.20%
Doleswar Iron & Engg. Works Ltd, Dy.Managing Director 3.00%
Prime Trans National Ltd,Dy.Managing Director 0.01%
Prime World Trade Ltd, Dy.Managing Director 2.00%
Prime Super Printing Mills Ltd, Dy.Managing Director 2.00%
Prime Synthetics Yarn Mills Ltd, Dy.Managing Director 2.00%
Prime Dyeing & Finishing Mills Ltd, Dy.Managing Director 2.00%
Prime Blended Yarn Mills Ltd, Dy.Managing Director 0.01%
Prime Weaving Mills Ltd, Dy.Managing Director 2.00%
Prime Composite Mills Ltd,Dy.Managing Director 0.22%
Prime Dairy & Poultry Ind. Ltd,Dy.Managing Director 3.00%
Prime Fisheries Industries Ltd,Dy.Managing Director 3.00%
Prime Melange Yarn Mills Ltd, Dy.Managing Director 1.00%
Prime Knit Wears Ltd., Dy.Managing Director 5.00%
Prime Information Technology Ltd, Dy.Managing Director 25.00%
Prime Group of Industries Ltd, Dy.Managing Director 1.00%
Prime Knit Fabrics Ltd, Dy.Managing Director 5.00%
Prime Textile Fabrics Ltd, Dy.Managing Director 5.00%
Prime Energy Ltd., Dy.Managing Director 5.00%
Prime Fine Yarn Mills Ltd, Dy.Managing Director 5.00%
Prime Ship Breakers Ltd, Managing Director 5.19%
Prime Ship Recycling Ltd, Managing Director 10.00%
Prime FSS Ship Breakers Ltd, Managing Director 6.00%
Prime Steel Mills Ltd. Dy.Managing Director 2.00%
Prime Ship Building Ltd., Dy.Managing Director 8.00%
Prime Financial Consultants & Equities Ltd, Managing Director 16.46%
10 Mr. Md. Harunur Rashid Director Apurba Embroidery, Proprietor 100.00%
HR Bricks, Proprietor 100.00%
Faridgonj Fisheries Ltd., Managing Director 95.00%
NCC Holdings Limited, Managing Director 95.00%
Nazma Construction Company, Proprietor 100.00%
Global Insurance Ltd., Sponsor Shareholders 2.23%
11 Mr. Khairul Alam Chaklader Director Desh Medical College & Hospital , Chairman 50.00%
Desh Diagnostic Center, Chairman 50.00%
Mos-5 Tel Ltd. 15.00%
Gulshan Point (Pvt) Ltd., Managing Director 50.00%
Gold Vision Industries Ltd., Managing Director 50.00%
Urban Responses Ltd., Managing Director 50.00%
Eastern Logistics Ltd., Director 5.00%
Maxwell Electronics, Proprietor 100.00%
Orbit Pharmaceuticals Ltd. Director 20.00%
12 Mr. Md. Moinuddin Director Janata Real Estate, Managing Director 60.00%
Central Paris, Managing Director 70.00%
Gausia Trading, Proprietor 100.00%
Salam Trading 65.00%
13 Mr Md. Amirul Islam, FCS, FCA Independent
Director
The Dacca Dyeing & Manufacturing Co. Limited, Independent
Director Nil
Hakkani Pulp and Paper Mills Limited, Independent Director Nil
K.M. Hasan & Co. Chartered Accountants, Senior partner Nil
14 Mr. K.A.M. Haroon
Independent
Director
Working as deputy team leader under 'Regional Co-operation and
Integration Project-Rail Component'. A joint venture project of
CANARAIL, SMEC, DB, ACE Consultants Ltd. Nil
99
Annexure-I
1 Mr.A.Parvez Chowdhury Guarantor Mr.Amjadul Ferdous Chowdhury CC(H) 109.50 - 109.50 FASN Corporation do do SOD(G) 167.22 - 167.22
Amjadul Forhad Chowdhury & allied do do HBL 96.23 - 96.23 2 Mr. Md. Harunur Rashid Self Mr. Md. Harunur Rashid Term Loan 882.87 - 882.87
3 Habib Sons Managing Partner Mr. Yakub Ali CC(H) 1.06 - 1.06
Habib Shares & Securities Ltd. Chairman &
Managing Director
do SOD(G) 47.85 - 47.85
4 Prime Steel Re-rolling Mills Limited Managing Director Mr.Md. Abdul Awal B/G - 1.11 1.11
5 Shaheedullah & Associates Guarantor Mrs. Sohela Hossain SOD(G) 53.00 - 53.00
Total 1,357.73 1.11 1,358.84
The Bank in normal course of business has had transactions with other entities that fall within the definition of Related party as contained in Bangladesh
Accounting Standards (BAS-24) (Related Party Disclosures) and as defined in the BRPD Circular # 14 dated 25 June 2003.
Representing DirectorsName of the OrganizationTotal
Outstanding
Nature of
Transaction
Figure in Lac
National Credit and Commerce Bank Limited
SL.
No.
Outstanding
(Funded)
The Significant Related party transactions during the year were as follows:
Related Party Transactions:
Directors relation
with the concern
Related Party Transactions:
as at 31 December 2014
Outstanding
(Non-
funded)
100
Annexure-J
a.(i) Disclosure regarding outstanding Repo as on 31 December 2014
Sl No Counter Party Name Agreement Date Reversal Date
Amount
(Ist leg cash
consideration)
1 Bangladesh Bank 30.12.2014 01.01.2015 1,101,530,000
2 Rupali Bank Ltd. 30.12.2014 01.01.2015 998,087,000
3 United Commercial Bank Limited 30.12.2014 01.01.2015 1,493,613,000
4 Amanat Bima Trust 30.12.2014 01.01.2015 229,570,590
3,822,800,590
a.(ii) Disclosure regarding outstanding reverse repo as on 31 December 2014
Sl No Counter Party Name Agreement Date Reversal Date
Amount
(Ist leg cash
consideration)
-
b.Disclosure regarding overall transaction of Repo and Reverse repo.
Minimum
outstanding
during the year
Maximum
outstanding
during the year
Daily average
outstanding during
the year
6,735,400,000 908,114,685
7,265,615,250 3,058,519,672
- - 1,250,000,000 13,982,004
Securities purchased undrer repo: i)from Bangladesh Bank
ii)from other banks & FIs
Securities sold undrer repo:
Particulars
i) with Bangladesh Bank
ii) with other banks & FIs
National Credit and Commerce Bank Limited Financial Statements for the year ended on 31 December 2014
Total
Total
Nil
101
Annexure-K
Sl. No. Particulars 2014 2013
1 Paid-up Capital 8,029,254,580 7,646,909,130
2 Total Capital 15,182,216,554 13,998,611,404
3 Capital surplus / (Deficit) 3,747,057,596 2,108,322,493
4 Total Assets 135,996,552,482 124,626,249,746
5 Total Deposits 105,458,206,463 97,986,947,700
6 Total Loans & Advances 93,766,512,875 90,790,437,249
7 Total Contingent Liabilities 33,098,051,444 26,235,798,458
8 Credit Deposit Ratio* 77% 83%
9Percentage of classified loans against total Loans &
Advances 7.49% 5.56%
10 Profit after tax & provision 1,494,682,198 1,140,498,525
11Amount of classified loan during
current year6,735,516,359 4,862,413,739
12 Provision kept against classified Loans 2,705,151,901 2,663,394,687
13 Provision surplus / (deficit) - -
14 Cost of Fund ( %) 10.81% 11.61%
15 Interest Earning Assets 120,744,124,379 111,348,432,419
16 Non-interest Earning Assets 15,252,428,103 13,277,817,327
17 Return on Investment (ROI) 11.49% 14.06%
18 Return on Assets (ROA) 1.15% 0.92%
19 Income from Investment 2,673,127,057 2,782,298,831
20 Earnings Per Share ( Taka) 1.86 1.42
21 Net income Per Share (Taka) 1.86 1.42
22 Price Earning Ratio (Times) 6.02 9.22
* Credit Deposit Ratio (CDR) calculation is made as per Bangladesh Bank guidelines.
National Credit and Commerce Bank Limited and its Subsidiaries
CONSOLIDATED FINANCIAL HIGHLIGHTSFor the year ended 31 December 2014
102
Annexure-L
Sl. No. Particulars 2014 2013
1 Paid-up Capital 8,029,254,580 7,646,909,130
2 Total Capital 15,177,695,612 13,987,440,923
3 Capital surplus / (Deficit) 3,910,490,460 2,205,418,361
4 Total Assets 135,159,523,539 124,042,696,069
5 Total Deposits 105,703,614,110 98,229,442,528
6 Total Loans & Advances 90,920,772,028 88,167,205,831
7 Total Contingent Liabilities 33,098,051,444 26,235,798,458
8 Credit Deposit Ratio* 77% 83%
9Percentage of classified loans against total Loans &
Advances 7.49% 5.56%
10 Profit after tax & provision 1,501,329,218 1,137,847,175
11Amount of classified loan during
current year6,735,516,359 4,862,413,739
12 Provision kept against classified Loans 2,705,151,901 2,663,394,687
13 Provision surplus / (deficit) - -
14 Cost of Fund ( %) 10.81% 11.61%
15 Interest earning Assets 112,222,257,434 108,688,074,544
16 Non-interest earning Assets 22,937,266,105 15,354,621,525
17 Return on Investment (ROI) 11.50% 14.07%
18 Return on Assets (ROA) 1.16% 0.92%
19 Income from Investment 2,672,992,807 2,801,832,887
20 Earnings per Share ( Taka) 1.87 1.42
21 Net income per Share (Taka) 1.87 1.42
22 Price Earning Ratio (Times) 5.99 9.24
* Credit Deposit Ratio (CDR) calculation is made as per Bangladesh Bank guidelines.
National Credit and Commerce Bank Limited FINANCIAL HIGHLIGHTS OF THE BANK
For the year ended on 31 December 2014
103
Annexure-M
i) Geographical Segment
Outside Bangladesh
NCC Bank Limited
(Conventional
Banking)
Off-Shore
Banking
Units
NCCB Securities
and Financial
Services Limited
(NCCBSFSL)
NCCB Capital
Limited
NCCB Exchange
(UK) Limited
Income 15,871,727,480 10,555,063 357,625,499 - 5,674,031 16,245,582,073 Less: Inter segmental income - - - - Total Income 15,871,727,480 10,555,063 357,625,499 - 5,674,031 16,245,582,073
Operating Profit (Profit before unallocated
expenses and tax)15,871,727,480 10,555,063 357,625,499 - 5,674,031
16,245,582,073 Allocated expenses 12,014,655,068 7,225,340 336,467,214 252,518 15,347,169 12,373,947,309 Provision against loans and advances and others 1,356,848,737 3,500,493 10,000,000 - 1,370,349,229 Profit/(Loss) before tax 2,500,223,675 (170,770) 11,158,286 (252,518) (9,673,138) 2,501,285,535 Income tax including deferred tax 999,149,242 - 7,879,650 - - 1,007,028,892 Net Profit 1,501,074,433 (170,770) 3,278,636 (252,518) (9,673,138) 1,494,256,643 Segment Assets 135,159,523,539 386,536,620 4,880,568,168 275,990,224 6,133,373 135,996,552,482 Segment Liabilities 135,159,523,539 386,536,620 4,880,568,168 275,990,224 6,133,373 135,996,552,482
ii) Business Segment
Income 15,871,727,480 10,555,063 5,674,031 16,245,582,073 Less: Inter segmental income - - Total Income 15,871,727,480 10,555,063 5,674,031 16,245,582,073
Operating Profit (Profit before unallocated
expenses and tax)15,871,727,480 10,555,063 5,674,031
16,245,582,073 Allocated expenses 12,014,655,068 7,225,340 15,347,169 12,373,947,309 Provision against loans and advances and others 1,356,848,737 3,500,493 1,370,349,229 Profit/(Loss) before tax 2,500,223,675 (170,770) (9,673,138) 2,501,285,535 Income tax including deferred tax 999,149,242 - - 1,007,028,892 Net Profit 1,501,074,433 (170,770) (9,673,138) 1,494,256,643 Segment Assets 135,159,523,539 386,536,620 6,133,373 135,996,552,482 Segment Liabilities 135,159,523,539 386,536,620 6,133,373 135,996,552,482
Total
Particulars
Off-Shore
Banking
Units
336,719,732 10,000,000 10,905,768 7,879,650
Total
National Credit and Commerce Bank LimitedNotes to the Financial Statements
For the year ended on 31 December 2014
Financial Reporting by Segments
Particulars
3,026,118 5,156,558,392
Investment (NCCBSFSL &
NCCBCL)
Remittance (outside
Bangladesh)
Conventional
Banking
5,156,558,392
357,625,499 -
357,625,499
357,625,499
104
Notes
USD BDT USD BDT
Cash - - - -
In hand (including foreign currencies) - - - -
Balance with Bangladesh Bank and its agent bank (s) - - - -
(including foreign currencies)
Balance with other banks and financial institutions 3 67,212 5,235,777 - -
In Bangladesh - - - -
Outside Bangladesh 67,212 5,235,777 - -
Loans and advances 4 4,700,422 370,745,781 265,000 20,696,500
Loans, cash credits, overdrafts, etc. 4.1 - - - -
Bills purchased & discounted 4.2 4,700,422 370,745,781 265,000 20,696,500
Fixed assets including premises, furnitures and fixtures 5 - - - -
Other assets 6 134,631 10,555,063 4,152 320,301
Non-banking assets - - - -
TOTAL ASSETS 4,902,264 386,536,620 269,152 21,016,801
LIABILITIES AND CAPITAL
Liabilities
Borrowings from other banks, financial
institutions and agents 7 4,858,461 383,332,567 265,000 20,693,982
Deposits and other accounts 8 - - - -
Current deposits and other accounts - - - -
Bills payable - - - -
Savings bank deposits - - - -
Fixed deposits - - - -
Term deposits - - - -
Other liabilities 9 47,004 3,707,458 4,878 378,817
TOTAL LIABILITIES 4,905,465 387,040,025 269,878 21,072,799
Shareholders' equity
Paid up capital - - - -
Statutory reserve - - - -
General reserve - - - -
Other reserve-assets revaluation reserve - - - -
Revaluation gain/(Loss) - - - -
Foreign currency translation gain/(loss) 9.2 (274,119) 2,518
Surplus in profit and loss A/C 10 (3,201) (229,286) (726) (58,516)
TOTAL SHAREHOLDERS' EQUITY (3,201) (503,405) (726) (55,998)
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 4,902,264 386,536,620 269,152 21,016,801
CONTRA ENTRIES
Off balance sheet items:
Contingent liabilities 11
Acceptances and endorsements - - - -
Letters of guarantee - - - -
Letters of credit issued - - - -
Bills for collection - - - -
Other contingent liabilities :
Claims against the bank not acknowledged as debt - - - -
Capital commitments - - - -
Export development fund (EDF)
TOTAL OFF BALANCE SHEET ITEMS - - - -
These financial statements should be read in conjunction with the annexed notes.
National Credit and Commerce Bank Limited Annexure-N
2013
Off-shore Banking UnitBalance Sheet
PROPERTY AND ASSETS 2014
As at 31 December 2014
105
Notes
USD BDT USD BDT
Interest income 12 134,631 10,555,063 4,152 320,301
Less: Interest paid on deposits and borrowings 13 92,751 7,225,340 2,228 171,852
Net interest income 41,879 3,329,723 1,924 148,449
Commission, exchange and brokerage 14 - - - -
Total operating income 41,879 3,329,723 1,924 148,449
Salary and allowances 15 - - - -
Rent, taxes, insurance, electricity etc. 16 - - - -
Legal expenses 17 - - - -
Postage, stamp, telecommunication etc. 18 - - - -
Stationery, printing, advertisement etc. 19 - - - -
Audit fee 20 - - - -
Depreciation and repair of bank's assets 21 - - - -
Other expenses 22 - - - -
Total operating expense - - - -
Profit before provisions 41,879 3,329,723 1,924 148,449
Provision for loans and advances 44,354 3,500,493 2,650 206,965
Specific provision - - - -
General provision 44,354 3,500,493 2,650 206,965
Provision for off-balance sheet exposures - - - -
Provision for gratuity - - - -
Provision for investment fluctuation in shares - - - -
Provision for incentive Bonus - - - -
Provision for other assets - - - -
Total provisions 44,354 3,500,493 2,650 206,965
Profit before tax (2,475) (170,770) (726) (58,516)
Provision for tax - - - -
Current tax - - - -
Deferred Tax - - - - Profit after tax (2,475) (170,770) (726) (58,516)
National Credit and Commerce Bank Limited (Off-shore Banking Unit)Profit and Loss Account
For the year ended on 31 December 2014
20132014
106
USD BDT USD BDT
A) Cash flows from operating activities
Interest received in cash 4,152 320,301 - -
Interest paid by cash (94,979) (7,397,192) - -
Dividend received - - - -
Fees & commission received in cash - - - -
Recoveries of loans previously written off - - - -
Cash paid to employees - - - -
Cash paid to suppliers - - - -
Income taxes paid - - - -
Received from other operating activities - - - -
Paid for other operating activities - - - -
Operating profit before changes in operating assets and liabilities (90,827) (7,076,891) - -
Increase/(decrease) in operating Assets & Liabilities
Purchase-sale of trading securities - - - -
Loans and advances to other banks (4,435,422) (350,049,281) (265,000) (20,696,500)
Loans and advances to customers ( Other than Banks) - - - -
Other assets (4,152) (320,301)
Deposits/ borrowings from other Banks 4,593,461 362,638,585 265,000 20,693,982
Deposits from customers ( Other than Banks) - - - -
Other liabilities account of customers - - - -
Other liabilities 4,152 320,301
Net Cash received from operating activities 67,212 5,512,413 0 (2,518)
B) Cash flows from investing activities
Proceeds from sale of securities - - - -
Payment for purchase of Securities - - - -
- - - -
Sales proceeds of fixed assets - - - -
Net cash used in investing activities - - - -
C) Cash flows from financing activities
Received from issue of loan capital and debt securities - - - -
Payment for redemption of loan capital & debt security - - - -
Dividend paid in cash - - - -
Net cash received from financing activities - - - -
D) Net (decrease) / increase in cash (A+B+C) 67,212 5,512,413 - (2,518)
Effects of exchange rate changes on cash and cash-equivalents - (276,636) 2,518
E) Opening cash and cash-equivalents as 1st January - - - -
F) Closing cash and cash-equivalents (D+E) 67,212 5,235,777 - -
For the year ended on 31 December 2014
20132014
These financial statements should be read in conjunction with the annexed notes
Purchase of property, plant and equipment
National Credit and Commerce Bank Limited (Off-shore Banking Unit)Cash Flow statement
107
1.1 Status of the Units
1.1.1 Principal activities
1.2 Significant accounting policies and basis of preparation of financial statements
1.2.1 Basis of accounting
1.2.2 Use of estimates and judgments
1.2.3 Foreign currency transaction
a) Foreign currencies transaction
b) Transaction gains and losses
The resulting exchange transaction gains and losses are included in the profit and loss account.
1.2.4 Cash flow statement
1.2.5 Reporting period
The financial statements cover from 01 January 2014 to 31 December 2014.
1.3 Assets and their valuations
1.3.1 Cash and cash equivalents
1.3.2
1.4 Basis for valuation of liabilities and provisions
Provision for liabilities
1.5 Revenue recognition
1.5.1 Interest income
In terms of the provisions of the BAS-18 " Revenue", the interest income is recognized on accrual basis.
As at and for the year ended on 31 December 2014
National Credit and Commerce Bank Limited (Off-shore Banking Unit)Notes to the Financial Statements
Off-shore Banking Unit (OBU) of NCCBL governed under rules and guidelines of Bangladesh Bank. The Bank obtained permission from
Bangladesh Bank for operating of Off-shore Banking units located at our Foreign Exchange Branch & Agrabad Branch vide Bangladesh Bank
Letter No. BRPD (P-3)744(113)/2010-1648 dated 02 May 2010. The Bank commenced the operation of its Off-shore Banking Units from 26
August 2013 at Foreign Exchange Branch, Dhaka. Operation of OBU located at Agrabad Branch, Chittagong will be started within very
soon.
The principal activities of the OBU are to provide all kinds of commercial banking services to its customers through its Off-shore Banking
units in Bangladesh.
Foreign currency transactions are converted in to equivalent Taka using the ruling exchange rates on the dates of respective transactions
as per BAS-21 "The effects of changes in Foreign Exchange Rates". Foreign currency balances held in US Dollars are converted into Taka at
weighted average rate of inter-bank market as determined by Bangladesh Bank on the closing date of every month.
Cash flow statement has been prepared in accordance with the BRPD circular no.14 dated 25 June 2003 issued by the Banking Regulations
and Policy Department of Bangladesh bank.
The off-shore banking Units maintain its accounting records in USD from which accounts are prepared according to the Bank Companies
Act-1991, Bangladesh Accounting Standards (BASs), Bangladesh Financial Reporting Standards (BFRSs) Other laws and regulations
applicable in Bangladesh and applicable directives issued by Bangladesh Bank.
The preparation of financial statements requires management to make judgment, estimates and assumptions that affect the application of
accounting policies and the reported amounts of assets. Liabilities, income and expenses. Actual expenses may differ from these estimates.
The figure appearing in these financial statements have been rounded off to the nearest integer.
cash and cash equivalents include notes and coins on hand, unrestricted balances held with Bangladesh Bank and highly liquid financial
assets which are subject to insignificant risk to change in their fair value, and are used by the unit management for its short-term
commitments.
Loans and Advances
a) Loans and advances of off-shore banking units are stated in the balance sheet on gross basis.
b) Interest is calculated on a daily product basis but charged and accounted for on accrual basis. Interest is not charged on bad and loss
as per guidelines of Bangladesh. Records of such interest amounts are kept in separate memorandum accounts.
A provision for recognized in the balance sheet when the unit has a legal or constructive obligation as a result of a past event and it is
probable that an out flow of economic benefit will be required to settle the obligations, in accordance with the BAS 37 " Provisions,
Contingent liabilities and Contingent Assets".
108
1.5.2 Interest paid
2 General
USD Taka USD Taka
3 Balance with other Banks and financial institutions :
In Bangladesh - - - -
Outside Bangladesh 67,212 5,235,777 - -
67,212 5,235,777 - -
4 Loans and Advances
Loans, cash credits, overdrafts etc.( Note-4.1) - - Bills purchased and discounted (Note-4.2) 4,700,422 370,745,781 265,000 20,696,500
4,700,422 370,745,781 265,000 20,696,500
4.1 Loans, cash credits, overdrafts etc.
Inside Bangladesh: - - - -
Outside Bangladesh: - - - -
- - - -
4.2 Bills purchased and discounted
Inside Bangladesh: - -
Outside Bangladesh: 4,700,422 370,745,781 265,000 20,696,500 4,700,422 370,745,781 265,000 20,696,500
5 Fixed assets including premises, furniture and fixtures - - - -
6 Other assets
Interest receivable on loans and advances 134,631 10,555,063 4,151.66 320,301
134,631 10,555,063 4,151.66 320,301
7 Borrowing from other banks, financial institutions and agents
Demand borrowing 4,858,461 383,332,567 265,000 20,693,982
8 Deposits and other accounts - - - -
8.1 Bills payable:
9 Other liabilities
Provision for loans and advances (9.1) 47,004 3,707,458 2,650 206,965
Interest payable - - 2,228 171,852
47,004 3,707,458 4,878 378,817
9.1 Provision for loans and advances
Opening Balance 2,650 206,965
Provision for loans and advances charged during the year 44,354 3,500,493 2,650 206,965 Closing Balance 47,004 3,707,458 2,650 206,965
9.2 Foreign currency translation gain/(loss) (274,119) 2,518
10 Surplus in profit and loss account
Opening balance (726) (58,516) - -
Profit/(Loss) during the year (2,475) (170,770) (726) (58,516) Closing balance (3,201) (229,286) (726) (58,516)
11 Contingent liabilities :
11 - - - -
11 - - - -
11 Letter of credit issued - - - -
11 Bills for collection - - - -
12 Interest income
Interest on loans and advances 134,631 10,555,063 4152 320,301
Letter of guarantee
Acceptances and endorsement
2013
a) These financial statements are presented in taka, which is the Bank's functional currency. Figure appearing in these financial statements
have been rounded off to the nearest Taka.
b) Assets and liabilities & Income and expenses have been converted into Taka currency closing rate as at transaction date and average
rate.
2014
In terms of the provisions of the BAS-1 " Presentation of Financial Statements" interest and other expenses are recognized on accrual
basis.
109
13 Interest paid on deposits and borrowings
Interest on borrowings 92,751 7,225,340 2228 171,852
14 Commission, exchange and brokerage - - - -
15 Salary & allowances - - - -
16 Rent, taxes, insurance, electricity etc. - - - -
17 Legal Expenses - - - -
18 Postage, stamp and telecommunication - - - -
19 Stationery, printing, advertisement etc. - - - -
20 Audit fees - - - -
21 Repairs, maintenance, amortization and depreciation21 Repairs & maintenance : - - - -
21 Depreciation: - - - -
22 Other expenses - - - -
110
Annexure-O
2014 2013
Taka Taka
Non-Current Assets
Property, Plant & Equipment 3 16,590,351 18,849,836
Intangibles 4 714,365 1,814,441
Investment in Shares of DSE & CSE 5 19,401,385 19,401,385
36,706,101 40,065,662
Current Assets
Investment in Marketable Securities 6 9,056,080 6,076,010
Accounts Receivable 7 11,610,509 7,754,479
Advance, Deposit and Prepayments 8 5,030,430 12,500
Advance Income Tax 9 201,347,939 162,088,313
Margin Loan to Customer 10 4,607,372,304 4,514,072,239
Cash and cash equivalents 11 9,444,805 13,969,598
Total Current Assets 4,843,862,067 4,703,973,139 4,880,568,168 4,744,038,801
Equity and Liabilities
Paid up share Capital 12 2,000,000,000 2,000,000,000
Retained Earnings 13 34,150,218 30,871,582 Equity 2,034,150,218 2,030,871,582
Non Current Liabilities - -
Current Liabilities
Short Term Loan 14 1,811,631,457 1,890,840,821
Accounts Payable 15 653,815,275 459,622,509
Other Liabilities 16 179,725,106 169,337,427
Provision for Income Tax 17 201,246,112 193,366,462
2,846,417,950 2,713,167,219
2,846,417,950 2,713,167,219 4,880,568,168 4,744,038,801
NCCB Securities and Financial Services LimitedStatement of Financial Position
As at 31 December 2014
Auditors' Report to the shareholder
Total Assets
Total Equity and Liabilities
Total Current Liabilities
These Financial Statements should be read in conjunction with the annexed notes from 1 to 32.
Notes
Assets
Total Liabilities
Company Secretary Chief Executive Officer Chairman
Dhaka, 25 April 2015Chartered Accountants
SHAFIQ MIZAN RAHMAN & AUGUSTINE
See annexed report of date
Sd/- Sd/- Sd/-
Sd/-
111
2014 2013
Taka Taka
Operating Revenue:
Brokerage Commission 18 102,173,092 102,914,461
Interest on Margin Loan 19 251,601,091 465,544,860
Other Operating revenue 20 3,412,269 4,773,187
357,186,451 573,232,508
Less: Direct Expenses 21 280,111,079 276,591,891
Net Revenue from Operation 77,075,372 296,640,617
Add: Other Income 22 439,049 1,007,963
Total Revenue 77,514,420 297,648,580
General & Administrative Expenses
Salaries & Allowances 23 30,451,984 24,682,178
Rent, Taxes, Insurance, Electricity etc. 24 12,138,076 11,940,819
Postage, Stamp & Telecommunication 25 682,169 565,585
Stationery, Printing and Advertisement 26 497,991 488,610
Director Fees 27 190,500 -
Audit Fee 28 29,250 15,000
Depreciation, Amortization and Repair & Maintenance of
Company's Assets 29 6,929,392 8,356,550
Other Expenses 30 5,436,773 4,750,924
56,356,134 50,799,666
Profit/(loss) before Provisions 21,158,286 246,848,914
Provision for Investment Fluctuation in shares - (543,683)
Provision for unrealized Loss in Margin Loan 16.1 10,000,000 153,647,099
Total Provision 10,000,000 153,103,416
Profit/(loss) before Tax 11,158,286 93,745,498
Less: Provision for Income Tax 17 7,879,650 65,086,678 #REF!
Net Profit /(loss) after Tax 3,278,636 28,658,820
Other Comprehensive Income - -
Total Comprehensive Income for the year 3,278,636 28,658,820
Company Secretary Chief Executive Officer Chairman
See annexed report of date
Dhaka, 25 April 2015
Chartered Accountants
SHAFIQ MIZAN RAHMAN & AUGUSTINE
Auditors' Report to the shareholder
NCCB Securities and Financial Services LimitedStatement of Profit or Loss and other Comprehensive Income
For the year ended on 31 December 2014
Notes
These Financial Statements should be read in conjunction with the annexed notes from 1 to 32
Sd/- Sd/- Sd/-
Sd/-
112
2014 2013
Taka Taka
A. Cash flows from operating activities:
Brokerage commission received 102,173,092 102,914,461
Interest received on margin loan 251,601,091 465,544,860
Received from operating income 3,717,067 5,315,208
Cash paid to service provider (89,386,663) (105,424,694)
Cash paid for operating activities (56,557,320) (55,978,587)
Interest Paid (269,353,226) (266,876,964)
Income taxes paid (39,259,626) (59,500,479)
Net cash from operating activities 31 (97,065,586) 85,993,805
B. Cash flows from investing activities
Purchase of fixed assets (1,508,981) (469,380)
Sale proceeds of fixed assets 51,797 -
Purchase of shares (2,980,070) (1,337,627)
Gain / (realized) on sale of shares - 343,297
Dividend received 134,250 51,760
Margin loan to customers (93,300,065) (289,818,569)
Intangible asset purchased - (75,000)
Net cash used in investing activities (97,603,069) (291,305,519)
C. Cash flows from financing activities:
Loan received 190,143,862 398,357,356
Final dividend paid for the year 2012 - (20,000,000)
Interim dividend for the year 2012 - (160,000,000)
Net cash used in financing activities 190,143,862 218,357,356 Net increase/decrease in cash and cash
equivalents (A+B+C) (4,524,793) 13,045,642
Cash and cash equivalents at beginning of the year 13,969,598 923,956
Cash and cash equivalents at end of the year 9,444,805 13,969,598
NCCB Securities and Financial Services LimitedStatement of Cash Flows
For the year ended on 31 December 2014
Company Secretary Chief Executive Officer Chairman
Notes
Sd/- Sd/- Sd/-
113
Particulars Paid up Capital Retained
Earnings Total
Tk. Tk. Tk.
Balance as on 01 January 2014 2,000,000,000 30,871,582 2,030,871,582
Net Profit for the year - 3,278,636 3,278,636
Balance as on 31 December 2014 2,000,000,000 34,150,218 2,034,150,218
Balance as on 01 January 2013 2,000,000,000 22,212,763 2,022,212,763
Net Profit for the year - 28,658,819 28,658,819
Appropriation:
Final Dividend for 2012 - (20,000,000) (20,000,000)
Balance as on 31 December, 2013 2,000,000,000 30,871,582 2,030,871,582
Company Secretary Chief Executive Officer Chairman
NCCB Securities and Financial Services LimitedStatement of Changes in Equity
For the year ended on 31 December 2014
Sd/- Sd/- Sd/-
114
01
1.1
1.2
2
2.1
2.2
2.3
2.4 Functional and presentational currency
2.5 Use of Estimates and Judgments
NCCB Securities and Financial Services LimitedSummary of Significant Accounting Policies and Other Information
As at and for the year ended on 31 December 2014
Significant Accounting Policies & Other Material Information:
(d) Statement of Cash Flows; and
Legal Form of the entity:
NCCB Securities and Financial Services Limited (the "Company") has been incorporated as a private limited
company with the Registrar of Joint Stock Companies and Firms, Dhaka, Bangladesh bearing Registration
No.C - 83683/10 dated April 04, 2010 under the Companies Act, 1994, registered office of the company
situated at NCC Bank Bhaban (3rd Floor),13/1 & 13/2 Toyenbee Circular Road, Motijheel C/A, Dhaka-1000.
The Financial Statements have been Prepared on a going concern basis following accrual basis of accounting
except for statement of cash flows in accordance with the company's act 1994, Securities & Exchange Rules
1987, the listing Rules of Dhaka & Chittagong Stock Exchanges and International Accounting standards
(IAS), International Financial Reporting Standards (IFRS) as adopted in Bangladesh by the Institute of
Chartered accountants of Bangladesh as Bangladesh Financial Reporting Standards (BFRS's) and other
applicable laws & regulations.
(a) Statement of Financial Position;
(b) Statement of Profit or Loss and other Comprehensive Income;
Nature of Business :
The main objective of the Company is to act as a full fledged Stock Broker & Stock Dealer to execute buy
and sell order and to maintain own portfolio as well as customers portfolio under the discretion of
customers. The company also performs the other activities relates to Capital Market as and when regulators
permits the company to carry out activities as per their guidelines.
Significant Accounting Policies
Basis of Presentation of Financial Statements
Components of the Financial Statements
(e) Summary of Significant Accounting Policies and Other Explanatory Information;
Estimates and underlying assumptions are reviewed on an ongoing basis. Revision of accounting estimates
are recognized in the period in which the estimate is revised and in any future periods affected.
The Financial Statements referred to here comprise of:
(c) Statement of Changes in Equity;
Basis of Measurement
The Financial Statements have been prepared based on historical cost convention basis. No adjustment has
been made for inflationary factors affecting the financial statements. The accounting policies, unless
otherwise stated, have been consistently applied by the Company and are consistent with those of the
previous year.
These financial statements are prepared in Bangladesh Taka (Taka/Tk), which is the Company’s functional
currency. All financial information presented in Taka has been rounded to the nearest integer.
The preparation of Financial Statements requires management to make judgments, estimates and
assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities,
income and expenses. Actual results may differ from these estimates.
115
Revenue Recognition:
2.6 Cash flow statement:
2.7 Property, plant and equipment
Recognition and measurement
Subsequent costs
Depreciation
Items Rate
Computer & Peripherals 20%
Office Equipment 10%
Furniture & Fixtures 20%
2.8 Intangibles
Recognition and measurement
Amortization of intangible assets
2.9 Provision for Current Tax
2.10 Related Party Transactions
Method
Items of Property, Plant and Equipment are measured at cost less accumulated depreciation and impairment
losses, if any. Cost includes expenditures that are directly attributable to the acquisition of the asset.
Computer software acquired by the Company, which have finite useful lives, are measured at cost less
accumulated amortization.
Straight Line Method
Reducing Balance Method
Income from brokerage commission is recognized on daily basis in the profit and loss account after receiving
the trading note of securities transacted from Dhaka Stock Exchange Limited & Chittagong Stock Exchange
Limited, at which point performance is assured to be completed.
Cash flow statement has been prepared as per Bangladesh Accounting Standard (BAS 7) Under Direct
Method.
Intangible assets are amortized at the rate of 20% on the straight line method.
The Income Tax is assessed under section 82BB of the Income Tax Ordinance (ITO) 1984 on income from
company's normal course of business and at 35% on company's income from other sources. Under section
82C, income tax deducted under certain sections of the ITO is treated as final discharge of tax payer's tax
liabilities from that source.
The cost of replacing part of an item of Property, Plant and Equipment is recognized in the carrying amount
of the item if it is probable that the future economic benefits embodied within the part will flow to the
Company and its cost can be measured reliably. The costs of the day-to-day servicing of Property, plant and
equipment are recognized in the profit and loss account as incurred.
Depreciation is charged to Computer & Peripherals on the straight line method and Office Equipment and
Furniture & Fixture on the reducing balance method. The rates of depreciation are as follows:
Reducing Balance Method
As per Bangladesh Accounting Standards (BAS) -24 " Related Party Disclosures " parties are considered to
be related if one of the parties has the ability to control the order party or exercise significant influence over
the other party in making financial and operational decisions. The Company carried out transactions in the
ordinary course of business on an arm's length basis at commercial rates with related parties.
116
2.11 Directors' Responsibility Statement
2.12 General
2014 2013
Taka Taka
3 Property, Plant & Equipment
Property, Plant & Equipment at Cost 36,196,002 34,738,818
Less: Accumulated Depreciation 19,605,651 15,888,982 Written Down Value (WDV) 16,590,351 18,849,836
(Annexure-O (i) may kindly be seen for details).
4 Intangibles
4.1 Preliminary Expenses
Trade License & TIN Certificate 20,100 20,100 Registration fee 984,225 984,225 Stamp & Share Charges 85,000 85,000 Audit Fee 15,000 15,000 DSE Entrance Fee & Club Member Fee 1,500,000 1,500,000 Stock Broker Registration Fee 40,000 40,000 DSE & CSE Membership and Transfer Fee 1,811,021 1,811,021
4,455,346 4,455,346
Less: Accumulated Amortization 3,935,723 3,044,651
519,623 1,410,695 4.2 Software
Software at cost 820,000 820,000 Bluechip software (MSA) 150,000 150,000 X-Broker Software at cost 75,000 75,000
1,045,000 1,045,000 Less: Accumulated Amortization 850,258 641,254
194,742 403,746 714,365 1,814,441
5 Investment in Shares of DSE & CSE
Investment in Shares of Stock Exchanges
Dhaka Stock Exchange Limited (Note:5.1) 400,385 400,385
Chittagong Stock Exchange Limited (Note:5.2) 19,001,000 19,001,000 19,401,385 19,401,385
5.1
43,290,640
72,151,060
Face Value in Tk
The Dhaka Stock Exchange Ltd allotted 7,215,106 number of Ordinary shares of Tk 10 each
against the membership held with them as per approved scheme of Demutualization under the
provision of Exchange Demutualization Act, 2013 as under:
Investment in shares of Dhaka Stock Exchange Ltd:
The Board of Directors takes the responsibility for the preparation and presentation of these Financial
Statements.
a) The Financial Statements are presented in Bangladeshi Taka (BDT) currency, which is the Company's
Functional currency.b) The figures appearing in these Financial Statements are expressed in Taka currency and rounded off to
the nearest Taka .
28,860,420
Shares Allotted
40% Ordinary Shares i.e. 2,886,042 shares of Tk 10/- each
credited to BO A/C # 120209005087704 of NCCB Securities and
Financial Services Ltd 60% Ordinary Shares i.e. 4,329,064 shares of Tk 10/- each
credited to DSE Demutualization Blocked account maintained by
DSE.
117
5.2
2014 2013
Taka Taka
6 Investment in Marketable Securities
Investment at cost 9,441,913 6,461,843
Less: Provision for Investment in Marketable Securities 385,833 385,833 9,056,080 6,076,010
9,754,708 6,076,010
7 Accounts Receivable
Receivable from Dhaka Stock Exchange Limited 2,714,157 1,716,076
Receivable from Chittagong Stock Exchange Limited 8,882,505 5,966,612 Receivable against shares - 57,945
Interest Receivable on Margin Loan 13,847 13,847 11,610,509 7,754,479
8 Advance, Deposit and Prepayments:
Suspense Account-Sundry Debtors 40,500 12,500
Advance Against Office Rent 4,989,930 -
5,030,430 12,500
9 Advance Income Tax
Advance Income Tax paid in Cash 162,024,918 134,459,986
Income Tax deducted at source by DSE & CSE 39,183,282 27,522,775
Advance Income Tax deducted at source on Bank Interest 139,739 105,552 201,347,939 162,088,313
Face Value in Tk
17,149,320
25,723,980
Market Value of Investment in shares
42,873,300
Investment in shares of Chittagong Stock Exchange Ltd:
Shares Allotted
40% Ordinary Share i.e. 1,714,932 shares of Tk 10/- each
credited to BO A/C # 120209005087704 of NCCB Securities and
Financial Services Ltd.
60% Ordinary Share i.e. 2,572,398 shares of Tk 10/- each
credited to CSE Demutualization Blocked account maintained by
CSE.
The Chittagong Stock Exchange Ltd allotted 4,287,330 number of Ordinary shares of Tk 10
each against the membership held with them as per approved scheme of Demutualization
under the provision of Exchange Demutualization Act, 2013 as under:
118
Year wise Break up of Advance Income Tax:
Accounting Year Cash Paid2011 31,142,098 2012 71,432,796 2013 59,513,420 2014 39,259,626
Total 201,347,939
2014 2013
Taka Taka
10 Margin Loan to CustomersMargin Loan to Customers 4,607,372,304 4,514,072,239
The above Margin Loans are lying with 10,447 no of Investors.
11 Cash and cash equivalents:
Cash in Hand 631 18
Cash at Banks :
Special Notice Deposit Account with:
IFIC Bank Limited, Stock Exchange Branch,Dhaka 2,447,626 13,567,665
One Bank Limited, Principal Branch,Dhaka 898,727 100,272
NCC Bank Limited, Motijheel Main Branch,Dhaka 291,755 301,643
3,638,108 13,969,580
Current Deposit Account with:
Midland Bank Limited, Hemayetpur Branch,Savar,Dhaka 320 -
NCC Bank Limited, NCC Bank Bhaban Branch,Dhaka 5,805,746 -
5,806,066 -
9,444,174 13,969,580
9,444,805 13,969,598
12 Share Capital
12.1 Authorized Capital
50,000,000 Ordinary shares @ of
Tk. 100 each 5,000,000,000 5,000,000,000 5,000,000,000 5,000,000,000
12.2
Name of Shareholders Number of
shares held
NCC Bank Limited 19,999,999 1,999,999,900 1,999,999,900
Alhaj Md. Nurun Newaz 1 100 100
Total 20,000,000 2,000,000,000 2,000,000,000
13 Retained Earnings
Balance at the beginning of the year 30,871,582 22,212,763
Add: Net profit during the year 3,278,636 28,658,819
34,150,218 50,871,582
Final dividend for 2012 - (20,000,000) Balance at the end of the year 34,150,218 30,871,582
65,086,678
43,734,860
84,544,924
7,879,650
Provisional Amount
201,246,112
The Issued ,Subscribed and Paid up Capital is Tk 2,000,000,000.00 divided into 20,000,000 ordinary shares
of Tk 100 each fully paid. The shareholding position of the Company as on December 31,2014 was as
follows:
Issued, Subscribed and Paid up Capital
119
2014 2013
Taka Taka
14 Short Term Loans
NCC Bank Ltd. Motijheel Main Branch,Dhaka 1,761,631,457 1,890,840,821
Midland Bank Ltd. Hemayetpur Branch,Savar,Dhaka 50,000,000 - 1,811,631,457 1,890,840,821
The terms & conditions of above short term Loan is as under:
Particulars Rate of Interest Adjustment
Period
2. Loan Agreement
4. Usual charge documents
15 Accounts Payable
Security Deposit received from BO Account holders 23,102,030 24,084,030
Sundry Creditors 8,620,764 4,767,105
Interest suspense 616,684,620 405,524,421
Payable to CDBL 107,110 97,720
Payable to Dhaka Stock Exchange Limited - 23,648,385
Payable to Chittagong Stock Exchange Limited 610,667 262,525
Payable to Suppliers 1,115,000 1,115,000
IPO Money Deposit 3,371,000 -
Other Payables 204,084 123,324 653,815,275 459,622,509
16 Other Liabilities
Provision for expenses 1,499,810 1,112,131
Provision for Interest waiver 9,400,000 9,400,000 Provision for Margin Loans (Note-16.1) 168,825,296 158,825,296
179,725,106 169,337,427
16.1 Provision for Margin Loan
Balance at the beginning of the year 158,825,296 14,578,197
Less: Amount transferred for interest waiver in favour of small investors - (9,400,000)
Add: Addition during the year 10,000,000 153,647,099
Balance at the end of the year 168,825,296 158,825,296
Within One Year
from 30.11.2015 3. Board Resolution of the
Company.
14.00%
1. Letter of Comfort of NCC
Bank Ltd
2. Usual Charge Documents as
per Credit norms
1. Loan Agreement
Security
As complied with BSEC Circular no. SEC/mukhpatra/2011/696 dated on 19 February 2013, has been
provided provision against equity erosion of Margin Loan A/C's for Tk 10,000,000.00 from the current year
profit and accumulated balance thereby stood at Tk 168,825,296.00 as on December 31, 2014. Moreover,
Interest Suspense has been buildup for Tk 616,684,820.00 against Margin Loan facility till 31 December,
2014 as well. Interest receivable has also been kept in separate A/C namely 'Memorandum register' for Tk
501,866,778.85 on classified Margin Loan.
3. Cheque covering the debt
amount
14.50% Within One Year
from 19.08.2015 Midland Bank Limited
NCC Bank Limited
120
2014 2013
17 Provision for Income Tax Taka Taka
Balance at the beginning of the year 193,366,462 128,279,784
Add: Provision made during the year 7,879,650 65,086,678
201,246,112 193,366,462
Less: Addition during the year - - Balance at the end of the year 201,246,112 193,366,462
Year wise Break up of provision for Income Tax :
Accounting Year Amount (TK)
2011 84,544,924
2012 43,734,860
2013 65,086,678
2014 7,879,650
Total 201,246,112
18 Brokerage Commission
Brokerage Commission-DSE 100,004,344 101,342,368
Brokerage Commission-CSE 2,168,748 1,572,093 102,173,092 102,914,461
19 Interest on Margin Loan 251,601,091 465,544,860
20 Other Operating Revenue
Account Opening Fee 233,500 131,500
BO Account Maintenance Fee 1,067,800 1,071,300
Margin Account Opening Fee 12,000 18,000
Marginal Renewal Fees - 2,742,500
Account Closing Fee 273,581 249,243
Service Charge income 14,000 12,000
Postage charge recovery - 3,780
Commission from Dealer 12,634 -
Income from CDBL Charges 1,798,754 544,864
3,412,269 4,773,187
21 Direct Expenses
Howla Charge DSE 1,114,096 1,224,334
Howla Charge CSE 40,924 30,772
Laga Charge DSE 4,596,073 4,675,772
Laga Charge CSE 84,929 60,979
Investor Protection Fund 11,922 12,097
CDBL Charges 4,909,910 3,710,972
Interest on Short Term Loan 269,353,226 266,876,964 280,111,079 276,591,891
22 Other Income
Interest on balance with other Banks 304,799 542,021
Capital Gain on sale of Shares - 401,242 Dividend on shares 134,250 64,700
439,049 1,007,963
(Annexure-O (ii) may kindly be seen for details).
121
2014 2013
23 Salary and Allowances Taka Taka
Basic Salary 14,518,281 12,290,586
House Rent Allowance 4,872,165 3,331,347
Entertainment Allowance 630,604 735,242
Medical Allowance 1,261,798 1,447,665
Conveyance Allowance 812,501 593,825
Washing Allowance 26,390 10,800
Contribution to Provident Fund 1,291,294 1,090,163
Special Allowance 1,800 10,700
Bonus 5,914,650 4,520,600
Casual Wages 1,122,500 651,250
30,451,984 24,682,178
24 Rent, Taxes, Insurance, Electricity etc.
Rent Office 10,416,398 10,415,030 Insurance Premium 7,500 -
Electricity 1,714,178 1,525,789 12,138,076 11,940,819
25 Postage, Stamp & Telecommunication
Stamp, Postage & Courier 47,605 41,707
Telephone 634,564 523,878 682,169 565,585
26 Stationery, Printing and Advertisement
Printing & Stationery 484,891 433,324
Publicity & Advertisement 13,100 55,286 497,991 488,610
27 Director Fees 190,500 -
28 Audit Fee 29,250 15,000
29 Depreciation, Amortization, Repairs & Maintenance of Company's assets
Depreciation on Fixed Assets (Annexure-A) 3,716,668 4,065,095
Amortization of Preliminary Expenses 891,072 891,072
Amortization of Software 209,004 222,754
Car Maintenance 66,206 210,612
Repair & Maintenance 2,046,442 2,967,017
6,929,392 8,356,550
122
2014 2013
30 Other Expenses Taka Taka
Utilities 118,780 122,250
Newspaper & Periodicals 81,369 99,789
Fuel cost for vehicle 85,753 -
Liveries & Uniform 52,292 39,559
Traveling expenses 489,905 213,849
Training, Development & Promotion 21,000 3,000
Conveyance 34,511 303,679
Bank Charges 74,742 49,292
Carrying Charge 9,500 -
Entertainment 609,511 546,455
Software & Development fees 250,000 -
Connectivity Charges 3,369,100 3,266,870
Trade Subscription 240,310 88,300
Gas Bill - 16,006
Business Promotion expenses - 1,875
5,436,773 4,750,924
31 Reconciliation of Cash Flow Statement from Operating Activities under Indirect Method
Cash flows from operating activities under indirect method:
Profit /(loss) before Tax 11,158,286
Adjustment for non cash items:
Depreciation on fixed Assets (Annexure-A) 3,716,668
Amortization of preliminary expenses 891,072
Amortization of software 209,004
Provision for unrealized loss in margin loan 10,000,000
14,816,744
25,975,030
Changes in operating assets & liabilities
Changes in accounts receivable (3,856,030)
Changes in advance, deposit & prepayments (5,017,930)
Changes in accounts payable 194,192,766
387,679
185,706,485
211,681,515
(134,250)
211,547,265
Interest Paid (269,353,226)
Income taxes Paid (39,259,626)
Net cash from operating activities (97,065,587)
32
(a)
(b)
Dividend income considered in investing activities
Event after the Reporting Period
The Board of Directors in its Meeting held on 25 April 2015 approved the Financial Statements and also
authorized the same for issue.
There was no other significant event occurred till the date of signing the Financial Statements.
Company Secretary Chief Executive Officer Chairman
Changes in other Liabilities except provision for unrealized loss in
margin loan
Sd/- Sd/- Sd/-
123
Balance as at
1st January
2014
Addition
during the
Year
Disposal/
Adjustment
during the
year
Balance as
at 31st
December
2014
Balance as
at 1st
January 2014
Charged for
the year
Disposal/
Adjustment
during the
year
Balance as
at 31
December
2014
Taka Taka Taka Taka Taka Taka Taka Taka Taka Taka
Computer &
Peripherals 14,480,303 135,500 - 14,615,803 20% 7,027,375 2,345,693 - 9,373,068 5,242,735
Office Equipment 7,380,891 150,000 51,797 7,479,094 20% 4,169,264 588,937 - 4,758,201 2,720,893
Furniture & Fixture12,877,624 1,223,481 - 14,101,105 10% 4,692,344 782,037 - 5,474,381 8,626,724
Total 34,738,818 1,508,981 51,797 36,196,002 15,888,983 3,716,668 - 19,605,651 16,590,351
Particulars
Annexure-O(i)
NCCB Securities and Financial Services LimitedSchedule of Property, Plant & Equipment
As at 31 December 2014
Written
Down Value
(WDV) as at
31 December
2014
Cost
Rate of
Depreciation
Depreciation
124
Accounting YearAssessment
Year
Provision
for Income
Tax
Advance
Income Tax
Paid
Tax Liability as per
Return (Short)/Excess Remarks
1 2 3 4 5 6=(3-5) 7
2011 2012-2013 84,544,924 69,966,727 69,966,727 14,578,197 Return filed u/s -
82BB of ITO 1984
2012 2013-2014 43,734,860 52,811,854 52,811,854 (9,076,994) Return filed u/s -
82BB of ITO 1984
2013 2014-2015 65,086,678 59,350,764 59,350,764 5,735,914 Return filed u/s -
82BB of ITO 1984 2014 2015-2016 7,879,650 19,340,561 - -
Total 201,246,112 201,469,906 182,129,345 11,237,117
Annexure-O (ii)
NCCB Securities and Financial Services LimitedCorporate Tax Position
As at 31 December 2014
125
Annexure-P
Particulars Notes 2014 2013
Taka Taka
Sources of fund
Shareholders' equity
Share capital 3 250,000,000 250,000,000
Retained earnings 4 8,342,114 8,594,632
258,342,114 258,594,632
Long term liabilities 5 - - Total Sources of fund 258,342,114 258,594,632
Applications of fund
Non-current assets
Property, plant & equipment 6 - -
Preliminary expenses 7 - -
Current assets
Cash and bank balance 8 271,032,940 271,044,320
Advance and prepayments 9 4,957,284 3,724,126
275,990,224 274,768,446
Less: Current liabilities
Payable to NCC Bank Limited 10 12,465,580 10,997,034
Provision for expenses 11 25,750 20,000
Provision for income tax 12 5,156,780 5,156,780
17,648,110 16,173,814
Net current assets 258,342,114 258,594,632
Total Applications of fund 258,342,114 258,594,632
Dhaka, 29 April 2015 Chartered Accountants
NCCB Capital LimitedStatement of Financial Position
As at 31 December 2014
These financial statements should be read in conjunction with the annexed notes.
Auditor's Report to the Shareholders
See annexed report of date
Company Secretary Chief Executive Officer Chairman
Hoda Vasi Chowdhury & Co
Sd/- Sd/- Sd/-
Sd/-
126
2014 2013Taka Taka
Operating income 13 - -
Less: Operating expenses 14 - -
Net Income from operation - -
Other income-interest on FDR 15 - 10,854,216
- 10,854,216
Less: Office & administrative Expenses 16 252,518 2,874,382
Profit/(Loss) before financial expenses (252,518) 7,979,834
Less: Financial expenses 17 - -
Net Profit/ (Loss) before tax (252,518) 7,979,834
Less: Provision for income tax 12 - 2,992,438
Net Profit/(Loss) after tax (252,518) 4,987,396
Dhaka,29 April 2015
NCCB Capital LimitedStatement of Profit or Loss and Other Comprehensive Income
For the year ended on 31 December 2014
These Financial Statements should be read in conjunction with the annexed notes.
Auditor's Report to the Shareholders
See annexed report of date
Chartered Accountants
Company Secretary Chief Executive Officer Chairman
Particulars Notes
Hoda Vasi Chowdhury & Co
Sd/- Sd/- Sd/-
Sd/-
127
2014 2013
Taka TakaCash flows from operating activities
Interest received on FDR - 15,597,842
Payment for office and administrative expenses 1,221,778 -
Income tax paid (1,233,158) (1,559,784)
Net Cash generated from / (used) for operating activities (11,380) 14,038,058
Cash flows from investing activities - -
Net cash used in investing activities - -
Cash flows from financing activities
Issuance of share capital - -
Net cash received from financing activities - -
Net (decrease) / increase in cash and cash equivalents (11,380) 14,038,058
Cash and cash equivalents at the beginning of the year 271,044,320 257,006,262
Cash and cash equivalents at the end of the year 271,032,940 271,044,320
Cash at bank 271,032,940 271,044,320
NCCB Capital Limited Statement of Cash Flows
Company Secretary Chief Executive Officer Chairman
For the year ended on 31 December 2014
Particulars
Sd/- Sd/- Sd/-
128
Particulars Paid up capital
Retained
earnings/
(accumulated
losses)
Total
Taka Taka TakaOpening balance as at 01 January 2014 250,000,000 8,594,632 258,594,632
Share issued - - -
Profit/(Loss) during the year - (252,518) (252,518)
Balance as at 31 December 2014 250,000,000 8,342,114 258,342,114
Opening balance as at 01 January 2013 250,000,000 3,607,236 253,607,236
Share issued - - -
Profit during the year - 4,987,396 4,987,396
Balance as at 31 December 2013 250,000,000 8,594,632 258,594,632
Company Secretary Chief Executive Officer Chairman
NCCB Capital Limited
For the year ended on 31 December 2014
Statement of Changes in Equity
Sd/- Sd/- Sd/-
129
1 Background of the company :
1 Nature of business :
2 Basis of accounting
2014 2013
Taka Taka
3 Share capital :
Authorized share capital ( 10,000,000 shares @ of Tk. 100 each) 1,000,000,000 1,000,000,000
Issued, subscribed and paid up capital
(2,500,000 shares @ of Tk. 100 each ) 250,000,000 250,000,000
250,000,000 250,000,000
3 Shareholding status:
Particulars No of shares
NCC Bank Limited 2,499,999 249,999,900 249,999,900 Mr. Gazi Hassan Mahmood 1 100 100
2,500,000 250,000,000 250,000,000
4 Retained earnings/(accumulated losses)
Opening balance 8,594,632 3,607,236
Add: Profit/(Loss) during the year (252,518) 4,987,396
Closing balance 8,342,114 8,594,632
5 Long term liabilities - -
6 Property, plant & equipments
At Cost - -
Less: Accumulated depreciation - - - -
7 Preliminary expenses
Registration fees - -
Documentation fees - -
TIN obtaining charge - -
Trade license fee - -
- -
Less: Amortization during the year - -
- -
NCCB Capital LimitedNotes to the financial statements
For the year ended on 31 December 2014
The Main objective of the Company is to act as a full fledged merchant banking activities like issue
management, underwriting, advisory services. The company applied to the Securities & Exchange
Commission for its license for carrying out its operations but yet to get clearance up to 31 December 2014,
the company could not formally started its operation.
The Financial Statements, namely, Statement of financial position, Statement of Comprehensive Income,
Cash Flow Statement, Statement of Changes in Equity and relevant notes thereto, of NCCB Capital Limited
are prepared on a going concern basis under the historical cost convention and in accordance with
Bangladesh Accounting Standards (BAS), Bangladesh Financial Reporting Standards (BFRS) , the
Companies Act-1994, and other laws and rules applicable thereto.
NCCB Capital Limited (the "Company") a fully owned subsidiary company of NCC Bank Limited has been
incorporated as a private limited company with the Registrar of Joint Stock Companies and Firms, Dhaka,
Bangladesh bearing Registration No.C - 83649/10 dated April 01, 2010 under the Companies Act, 1994
having registered Office at NCC Bank Bhaban, 13/1, 13/2, Toyenbee Circular Road, Motijheel C/A, Dhaka-
1000.(Previously at Bhuiyan Center, 68, Dilkusha C/A, Dhaka-1000)
130
2014 2013
Taka Taka
8 Cash & bank balance :
Cash in hand - - Cash at bank:Current deposit account with NCCBL, Dilkusha branch 271,032,940 271,044,320 ( Account No.0028-0210017040)Fixed deposit account with NCCBL, Dilkusha branch - - ( Account No.0028-0330025993) interest rate @ 12.50%
271,032,940 271,044,320
9 Advances & prepayments
Advance against office rent - -
Interest receivable on FDR - -
Advance income tax paid 2,617,812 1,384,654
Advance income tax deducted at source on interest of FDR 2,339,472 2,339,472
4,957,284 3,724,126
10 Payable to NCC Bank Limited :
Registration fees 819,325 819,325
Documentation fees 126,520 126,520
Trade License fee 13,100 13,100
Income Tax paid for obtaining TIN number 1,000 1,000
Payable against advance for office rent - -
Payable against advance income tax of the company 2,617,812 1,384,654
Office rent 8,098,750 7,889,750
Electricity-office 704,017 687,821
Water & Sewage 85,056 74,864 12,465,580 10,997,034
11 Provision for expenses
Audit Fee 25,750 20,000
25,750 20,000
12 Provision for income tax
5,156,780 2,164,342
- 2,992,438
5,156,780 5,156,780
13 Operating income - -
14 Operating expenses - -
15 Other income-interest on FDR - 10,854,216
16 Office and administrative expenses
Office rent 209,000 2,508,000
Electricity-office 16,196 330,240
Water & Sewage 10,192 31,142
Bank charges 11,380 -
Audit fees 5,750 5,000
Trade subscription - -
Amortization of preliminary expenses - -
252,518 2,874,382
17 Financial expenses - -
18 Reporting currencies :
The figure in the financial statements represent Bangladeshi Taka currency and rounded off to the nearest Taka.
19 Reporting period
These Financial Statements cover for the period from 01 January 2014 to 31 December 2014.
Company Secretary Chief Executive Officer Chairman
Closing balance
Opening balance
Add: Addition during the period
Sd/- Sd/- Sd/-
131
FIXED ASSETS
Intangible assets - 1,167 - 147,754
Tangible assets 15,559 27,093 1,873,195 3,430,245
CURRENT ASSETS
Debtors 6,600 6,653 794,603 842,336
Cash at bank and in hand 28,786 1,416 3,465,575 179,280
35,386 8,069 4,260,179 1,021,616
CREDITORS
Amounts falling due within one year2,409 27,736 290,046 3,511,655
NET CURRENT LIABILITIES 32,977 (19,667) 3,970,133 (2,490,039)
Total Assets less Current Liabilities 48,536 8,593 5,843,327 1,087,960
Creditors-Amounts falling due after more than one year 61,743 24,913 7,433,365 3,154,234
CAPITAL AND RESERVES
Paid-up capital 280,000 200,000 33,709,200 25,322,000
Profit and loss account (293,207) (216,320) (35,299,238) (27,388,274)
SHAREHOLDERS' FUNDS (13,207) (16,320) (1,590,038) (2,066,274) Total Liabilities and Shareholders' Fund 48,536 8,593 5,843,327 1,087,960
2014
(Tk.)
2013
(Tk.)
Annexure-Q
NCCB Exchange (UK) LimitedBalance Sheet
As at 31 December 2014
2014
(£)
2013
(£)Particulars
132
Turnover 45,100 21,105 5,674,031 2,710,515
Operating cost - - - -
Gross profit 45,100 21,105 5,674,031 2,710,515
Administrative expenses 121,987 106,709 15,347,169 13,704,637
Loss on Ordinary activities before Tax (76,887) (85,604) (9,673,138) (10,994,122)
Tax on loss on ordinary activities - - - -
Loss on Ordinary activities after Tax (76,887) (85,604) (9,673,138) (10,994,122)
Particulars
NCCB Exchange (UK) LimitedProfit and Loss Account
For the year ended on 31 December 2014
2014
(£)
2013
(£)
2014
(Tk.)
2013
(Tk.)
133