Auditor s Report - NCC Bank · accordance with Bangladesh Standards on Auditing. Those standards...

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


5


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

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Dhaka, 06 May 2015

Consolidated Profit and Loss Account For the year ended on 31 December 2014


Profit after provision for loans & advances & other provisions




ACNABIN

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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


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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

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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


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

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


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


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


Amount in Taka

ACNABIN




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


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Managing Director & CEO

ACNABIN



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


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



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


Director Managing Director & CEO

Sd/- Sd/- Sd/- Sd/-


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


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)


Sd/- Sd/- Sd/- Sd/-


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.

25

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.

26

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.

27

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.

28

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.

31

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


Adjustment for Off-shore banking unit - 20,696,500 -


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 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


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



NCCB Securities and Financial Services Limited. - - -




Less : Inter transactions - - -

2,181,295,881 1,803,544,217 2,126,660,086


Other assets 11


Adjustment for wrongly charged in NCC Bank Capital Limited - 8,652,435 -

Adjustment for Off-shore banking unit - 320,301 -


4,077,095,326

5,698,510,026

4,249,255,937

Consolidated other Assets 11(a)

NCC Bank Limited:


Adjustment for wrongly charged in NCC Bank Capital Limited - 8,652,435 -



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


Borrowing from other banks, financial institutions and agents

12





Consolidated borrowing from other banks, financial institutions and agents

12 (a)

NCC Bank Limited:



39



NCCB Securities and Financial Services Limited 1,811,631,457 1,890,840,821 1,890,840,821

Particulars


31.12.2014 31.12.2013 01.01.2013




Less: intercompany transactions 1,761,631,457 1,890,840,821 1,890,840,821


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



9,580,544,235 8,115,590,346 8,629,873,912


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


Other liabilities 14


10,130,694,248

9,779,505,380

7,342,935,755

Adjustment for Off-shore banking unit

-

378,817

-


10,130,694,248

9,779,884,197

7,342,935,755

Consolidated other liabilities 14(a)

NCC Bank Limited:


10,130,694,248

9,779,505,380

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:


Adjustment for exchange rate

- 39,375 -



Less: Intercompany transactions 3,577,757 2,344,599 166,855,071


40

Statutory reserve 16


Profit Adjustment for Off-shore banking unit - (11,703) -


Particulars


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:


Adjustment for wrong treatment - - -

Adjustment for Off-shore banking unit - (58,516) -


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 - - -


(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)


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:


1,494,682,198

1,141,588,850

1,450,030,718


-

(56,002)

-


General reserve - - -

Interim dividend

-

-

- Transfer to statutory reserve:

41


(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


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)


1,046,694,283

889,752,897

894,666,660

Interest income 22


12,019,784,168

12,193,950,023

11,638,407,298


-

148,449

-


12,019,784,168

12,194,098,472

11,638,407,298

Consolidated interest income 22(a)

NCC Bank Limited:


12,019,784,168

12,193,950,023

11,668,753,555

Profit Adjustment for Off-shore banking unit

-

148,449

-


12,019,784,168

12,194,098,472

11,668,753,555


251,905,890

466,086,881

407,211,611


-

10,854,216

12,540,501



12,271,690,058

12,671,039,569

12,088,505,667


269,353,226

277,731,180

-


12,002,336,832

12,393,308,389

12,088,505,667

Commission, exchange and brokerage 25


834,641,525

887,936,921

849,067,537

Transfer from other operating income

-

24,503,390

-


834,641,525

912,440,311

849,067,537

42

Consolidated commission, exchange & brokerage

25(a)

NCC Bank Limited:


Transfer from other operating income - 24,503,390 -


Particulars


31.12.2014 31.12.2013 01.01.2013


102,173,092

102,914,461

139,465,640


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


Transfer to Commission, exchange and brokerage - (24,503,390) -


`

Consolidated other operating income 26(a)

NCC Bank Limited:


344,308,980

344,025,626

295,503,924

Transfer to Commission, exchange and brokerage

-

(24,503,390)

-


344,308,980

319,522,236

295,503,924


3,412,269

4,773,187

1,807,673


-

-

-


-

-

-


347,721,249

324,295,423

297,311,597

Other expenses 36


254,914,885

240,598,299

362,213,245


-

-

-


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


16,194,627

14,676,463

24,119,918


21,572

31,142

59,557

43

NCCB Exchange (UK) Limited:


9,568,562

11,645,587

10,135,004


-

(4,024,551)

-


9,568,562

7,621,036

10,135,004


280,699,646

262,926,940

396,527,724

Particulars


31.12.2014 31.12.2013 01.01.2013

Cash paid for other operating activities 38


649,409,327

464,352,482

563,398,580

Adjustment

-

(2,869,382)

-


649,409,327

461,483,100

563,398,580

Consolidated cash paid for other operating activities

38(a)

NCC Bank Limited:


649,409,327

464,352,482

563,398,580

Adjustment

-

(2,869,382)

-


649,409,327

461,483,100

563,398,580


33,170,531

30,755,551

42,856,352


21,572

2,874,382

3,820,880


14,865,870

13,631,579

10,442,214


697,467,300

508,744,612

620,518,026

Cash and cash equivalents 41


11,024,328,718

8,532,347,743

9,034,009,417


-

(14,890,342)

-


11,024,328,718

8,517,457,401

9,034,009,417

Consolidated cash and cash equivalents 41(a)

NCC Bank Limited:


11,024,328,718

8,532,347,743

9,034,009,417


-

(14,890,342)

-


11,024,328,718

8,517,457,401

9,034,009,417


3,347,304

13,969,598

923,956

44


-

-

-


3,465,575

179,280

2,788,845


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)


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


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


Surplus/ (deficit) 8,296,335,493 6,613,576,735

Total required reserve 21,016,421,830 18,897,602,880


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 - -



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


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


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

47

31.12.2014 31.12.2013

Taka Taka

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


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 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:


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 :

48

31.12.2014 31.12.2013

Taka Taka

Treasury bonds:

2 years treasury bonds 246,942,152 -

5 years treasury bonds 8,949,517,929 8,079,658,638




23,097,260,358 17,880,125,288

Prize bonds 4,586,400 4,814,600

25,241,572,158 18,352,194,148


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


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

49

31.12.2014 31.12.2013

Taka Taka

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

50

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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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Taka Taka

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


1,749,385,406 1,719,414,409

Outside Bangladesh:


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


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


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


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


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

55

31.12.2014 31.12.2013

Taka Taka

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


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


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 Exchange (UK) Limited 1,873,195 3,577,999

2,591,715,651 1,759,065,816

11 Other assets


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


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


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


Off-shore banking unit (Note-12.2) 378,096,790 20,693,982

4,975,525,649 2,763,533,530

59

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Taka Taka

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:


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


NCCB Securities and Financial Services Limited 1,811,631,457 1,890,840,821



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


31,722,794 28,851,135

- -


9,580,544,235 8,115,590,346


9,303,413,794 7,844,244,383

Bills payable


- -

- -


2,038,624,517 1,319,767,208

Savings bank deposits


- -

- -


12,989,595,636 11,167,226,439

Fixed deposits


- -

- -


45,696,085,137 47,844,992,750

Less: Inter company transactions - -

45,696,085,137 47,844,992,750

Term deposits


- -

- -


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











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14 Other liabilities


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


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


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


(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


(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




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




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)

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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


1,003,449,532 793,475,264

17,648,110 16,173,814


11,159,515,301 10,596,199,164


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



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

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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

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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

31.12.2014 31.12.2013

Taka Taka

(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


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




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

31.12.2014 31.12.2013

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22 Interest income



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


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



NCCB Capital Limited - 10,854,216


12,271,690,058 12,671,039,569


12,002,336,832 12,393,308,389

23 Interest paid on deposits and borrowings



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


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.





9,608,581,187 10,421,581,879


9,339,227,961 10,143,850,699

Discount on bills purchased

75

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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


NCCB securities and Financial Services Limited 134,250 465,942



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




942,488,648 1,018,065,287

Exchange gain net off exchange losses

76

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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





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





1,769,143,439 1,449,457,548

77

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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.



NCCB Capital Limited 225,196 2,838,240


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





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

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Taka Taka

30(a) Consolidated Postage,stamp and telecommunication


NCCB Securities and Financial Services Limited 682,169 565,585



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.


NCCB Securities and Financial Services Limited 497,991 488,610



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


NCCB Securities and Financial Services Limited 190,500 -



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

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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


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


36(a) Consolidated other expenses



NCCB Capital Limited 21,572 31,142


280,699,646 262,926,940

80

31.12.2014 31.12.2013

Taka Taka

37 Cash received from other operating activities


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


1,088,702,191 1,571,233,700

37(a) Consolidated cash received from other operating activities





1,092,114,463 1,574,851,973

38 Cash paid for other operating activities


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



NCCB Capital Limited 21,572 2,874,382


697,467,300 508,744,612

39 Increase/(decrease) of other assets


Closing other assets:


Stamps and stamped forms in hand 3,170,134 2,715,071

Advance deposit 4,825,320 2,280,080


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:






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:






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:






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


Closing other liabilities

Interest suspense 1,488,795,712 979,431,588


1,743,558,861 1,233,386,762

Opening other liabilities

Interest suspense 979,431,588 613,309,927


1,233,386,762 865,414,139

Increase/(decrease) for the year 510,172,099 367,972,623


510,172,099 367,972,623

40(a) Increase/(decrease) of consolidated other liabilities





721,332,298 505,821,414

41 Cash and cash equivalents


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


11,024,328,718 8,517,457,401

82

31.12.2014 31.12.2013

Taka Taka

41(a) Consolidated cash and cash equivalents





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/-


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


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


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


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


2008 2009-2010 886,681,988 842,159,000 44,522,988 828,728,119 13,430,881 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


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


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




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.


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)


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




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


Where specific provisions are more than 50 percent of the


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


i) Claims under Credit Risk Mitigation

e) Claims on Public Sector Entities ( other than Government) in

Bangladesh

f)


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




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)


e. Claims on Public Sector Entities ( other than Government) in

Bangladesh

f.


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


Statement of the Name of the Directors and the entities in which they have interest as on 31

December 2014

97

SL.


Status with

the

NCCBL




% 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.


Status with

the

NCCBL




% 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


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.


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


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


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) - - - -


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

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


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


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


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)


Proceeds from sale of securities - - - -

Payment for purchase of Securities - - - -

- - - -

Sales proceeds of fixed assets - - - -

Net cash used in investing 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 - -


20132014

These financial statements should be read in conjunction with the annexed notes


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


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



Dhaka, 25 April 2015


SHAFIQ MIZAN RAHMAN & AUGUSTINE

Auditors' Report to the shareholder

NCCB Securities and Financial Services LimitedStatement of Profit or Loss and other Comprehensive Income


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)


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



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


NCCB Securities and Financial Services LimitedStatement of Changes in Equity


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


Subsequent costs

Depreciation

Items Rate

Computer & Peripherals 20%

Office Equipment 10%

Furniture & Fixtures 20%

2.8 Intangibles


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


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


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.


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


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


125

Annexure-P

Particulars Notes 2014 2013

Taka Taka

Sources of fund


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


These financial statements should be read in conjunction with the annexed notes.

Auditor's Report to the Shareholders



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


These Financial Statements should be read in conjunction with the annexed notes.

Auditor's Report to the Shareholders




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



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




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


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.


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


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


2014

(£)

2013

(£)

2014

(Tk.)

2013

(Tk.)

133

Auditor s Report - NCC Bank · accordance with Bangladesh Standards on Auditing. Those standards...

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