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CONTENTS

Notice of 14th AGM 05


Our Vision and Mission 07
Strategic Objectives 08
Core Values 09
History- Key Milestones 11
About the Company 12
Shareholding Structure 13
Product range 14
Board of Directors 15
Management Team 20
Subsidiary Company 22
Different Committees 23
Value Added Statement 24
Operational Performance 25
Financial Performance Snapshot 26
Operational and Financial Performance Review 27
Management Discussion and Analysis 28
Operational Activities of the Company during 2009 30
Risk Management 32
Statement of Corporate Governance 34
Charter of the Board and Committees 37
Statement of Directors’ Responsibility 38
Report of the Audit Committee 39
Message from the Chairman 41
Managing Director’s Round-up 43
Directors’ Report 44
Statement of Responsibility of CEO & CFO 58
Audited Financial Statements 62
Audited Financial Statements of the Subsidiary Company (ILSL) 117
Corporate Information 149
NOTICE OF THE AGM

May 11, 2010

NOTICE OF THE 14TH ANNUAL GENERAL MEETING

Notice is hereby given that the 14th Annual General Meeting of the Shareholders of International Leasing And Financial Services Limited will
be held on Tuesday the June 15, 2010 at 10.00 a.m at Spectra Convention Centre Limited, House # 19, Road # 07, Gulshan- 01, Dhaka-1212 to
transact the following.

Special Business: 10.00 AM

To propose, consider, adopt and pass the following special resolutions:


1. Resolved that the Authorized Share Capital of the Company be hereby increased from Taka 30.00 (Thirty) Crore to Taka 300.00
(Three Hundred) Crore.
2. Further resolved that the words “Tk 300,000,000.00” and “3,000,000 shares” as stated in the first line of existing clause 45 of the
Memorandum of Association be and is hereby substituted with words “Taka 300,00,00,000 (Three Hundred Crore)”and
“300,00,000 (Three Crore) shares”respectively.
3. Further resolved that the words “Tk 300,000,000 (Three Hundred million)” and “3,000,000 (Three Million)” as stated in the existing
clause 8(a) of the Articles of Association be and is hereby substituted with words “Taka 300,00,00,000 (Three Hundred Crore)” and
“300,00,000 (Three Crore) shares”respectively.

Ordinary Business: 10.30 A.M

1. To consider adoption of Director's Report, Auditor's Report and Audited Financial Statements of the Company for the year ended
December 31, 2009.
2. Declaration of Dividend for the year ended December 31, 2009
3. Election of Directors in place of those who shall retire by rotation in accordance with relevant provision of Articles of Association
of the Company.
4. Appointment of Auditor of the Company for the year 2010 and fixation of their remuneration.

By order of the Board

Nehal Ahmed FCA


Company Secretary

Notes:
1. The Record Date of the Company is Thursday the May 13, 2010. The Shareholders whose name will appear in the Share Register of the
Company on the Record Date will be eligible to attend the meeting and qualify for Dividend to be declared at the Annual General
Meeting.

2. A member eligible to attend and vote in the Annual General Meeting may appoint a proxy and vote in his/her behalf. The Proxy Form
duly completed and stamped with a revenue stamp of Taka 8.00 must be deposited at the Registered Office of the Company not
later than 48 hours before the time of the meeting.

3. Admission into the Meeting Room will be allowed on production of the Attendance Slip attached with the Proxy Form

04
OUR VISION

To serve with flexibility and care.


To rise high with our stakeholders.

OUR MISSION

Commitment towards the development of industrial and financial sectors


by offering diverse, innovative financial products and solutions.
Continuous drive in improving our services tailored to clients' needs.
Pursue proactive approach for reaping maximum benefits for all the stakeholders.
Attach importance to Human Resource Management and provide job
satisfaction for all, with equal opportunities for career development.
Serve for well-being of the society.

06
CORE VALUES
Clients First
Our priority is to serve the clients' financial needs properly.

Flexible Care
STRATEGIC OBJECTIVES Harness friendliness, caring mindset.
Continuous Diversification for maximization of shareholders' value.
n Leadership
Creating Synergy through symbiosis of Dynamic Management and Board.
n We inculcate Leadership in both individual and corporate level.
Serving and Sustaining individual and institutional clients having high Integrity.
n Think Long Term
Focusing intensely to maintain a sound assets portfolio.
n We believe in long-term prosperity and solid position.
Find out Diversified Sources of Fund and exercise good Fund Management practices.
n
Identifying Opportunities
Providing flexible and customized service to clients to build a long-term relationship.
n In our service, in strategic planning and in the market, find out the opportunities befitting our clients as well as our business.
Retaining most dynamic people with good Aptitude.
n
Synergy
Achieving a Leadership with distinction in the Market.
n We always believe that it is the combination of good owners and management that produce values more than the total of
isolated entities.

08
HISTORY KEY MILESTONES

January 15, 1996: Promoters Agreement signed

January 15, 1996: Incorporation of the company

February 19, 1996: Licensed by Bangladesh Bank

March 24, 1996: Commencement of Business

May 19, 1996: First Lease Agreement signed

December 19, 1996: First Credit Line Agreement signed

July 7, 1997: First Dividend declared

August 22, 2001 : First syndication Lease Agreement singed

October 30, 2001: First Term Loan Agreement singed

March 10, 2002: First Work Order Financing Agreement signed

December 11, 2003: Licensed by Bangladesh Bank as Primary Dealer

September 19, 2004: Capital Market Operation commenced

May 29, 2005: First Factoring Agreement signed

December 20, 2005: Management Agreement signed with First Capital Limited of Sri Lanka
for Primary Dealership Operations

April 13, 2006: Agreement signed with Equity Partners Limited to act as Issue Manager for forthcoming
Initial Public Offering (IPO) of International Leasing

July 02 to July 16, 2007: Subscription for Initial Public Offering (IPO) of shares of the Company
held for issuance of 0.5 million shares for Tk. 112.50 million

September 16, 2007: Became enlisted with Dhaka Stock Exchange Limited and
Chittagong Stock Exchange Limited

October 6, 2007: Purchased Membership of Dhaka Stock Exchange Limited


from public auction offered by DSE

April 07, 2008: First Real Estate Loan Agreement signed

June 24, 2008: Inauguration of Chiffagong Branch

August 31, 2008: Inauguration of International Leasing Securities Limited,


fully owned subsidiary Company of ILFSL

October 25, 2009: Acquisition of 100% shares of Hongkong Bangladersh Securities Limited,
a member Brokerage House of Chittagong Stock Exhcnage Limited
By International Leasing Securities Limited

10
SHAREHOLDERS AND
SHAREHOLDING STRUCTURE
As on 31.12.2009

Particulars No. of shares % of holding


Sponsor shareholders (a+b) 1,980,471 68.1
ABOUT the Company
a) Corporate 1,616,900 55.6
Singer Bangladesh Limited 1,035,000 35.6
International Leasing And Financial Services Limited Shaw Wallace Bangladesh Limited 581,900 20.0
(ILFSL) is a multi-product Financial Institution having 14 b) Individual 363,571 12.5
years' record of innovative and customer-driven financial Mrs. Rosy Ahmad 99,362 3.4
services. Starting from single-product Lease Financing Mrs. Zohra Islam 87,950 3.0
services, the Company is now an established market Mr. Jamal Uddin Ahmad 96,196 3.3
leader in the financial services industry.
Mr. M Matiul Islam 75,900 2.6
Mr. Mahbub Jamil 4,163 0.1
We are the first-generation licensee of Primary Dealership
c) General shareholders 929,029 31.9
(PD) from Bangladesh Bank to buy and sell government
treasury bonds and bills in the secondary market. Our new PHP Float Glass Industries Ltd. 274,275 9.4
product range includes Stock Brokerage (through our Institutions/Corporate 358,791 12.3
subsidiary company, International Leasing Securities Individual 289,008 9.9
Limited) and Real Estate Finance. We also offer various Non-resident Bangladeshis 6,955 0.2
attractive Deposit Schemes. Over the years, through Total (a+b+c) 2,909,500 100.0
proactive marketing and services, the company has been
able to establish itself as a leading financial institution of
the country. Our client and market focus will continue as
we march ahead with our growth momentum.

12
BOARD OF DIRECTORS

Mr. Mahbub Jamil Mr. Gavin J. Walker Mr. Gavin J. Walker


Chairman Director Director
PRODUCT RANGE
Joined the Board of International Leasing and Financial Mr. Walker joined the Board of ILFSL on June
Lease Finance Services Limited (ILFSL) on March 5, 1996 and elected 14, 2006.
Chairman of ILFSL on June 21, 2000.
Term Finance Presently Chairman of Singer Bangladesh Limited.
Served as Managing Director of Singer Bangladesh Mr. Walker is the President and Chief Executive
Work Order Finance Limited for more than 24 years. Former Vice President, Officer of Singer Asia Limited and was
Project Finance Singer Asia and Retail Holdings N.V. Before joining appointed to this position in August 2005. Prior
Singer, he served in Philips for more than 14 years. to joining the Company, Mr. Walker held offices
Real Estate Finance Former Director of Micro Industries Development as Managing Director and Chief Executive
Assistance Services (MIDAS), Chairman of Electrical
Syndication and Systems Services Company Ltd., President of the
Officer of public quoted and private companies
Foreign Investors' Chamber of Commerce & Industry in the United Kingdom and South Africa.
Stock Brokerage
(FICCI) for 3 terms, President of Metropolitan Chamber
Primary Dealership (of Treasury securities) of Commerce & Industry (MCCI), Committee Member Mr. Walker served as Chief Executive Officer of
of Bangladesh Employers' Federation. Founder member Profurn Limited, a multi-brand retailer of
Deposit Schemes of American Chamber of Commerce.
electrical appliances and furniture with
Mr. Jamil received Sir Jagadis Chandra Bose Gold
Medal in 1994 for Business Management and in 1995
operations in 16 African countries and Australia
Bangladesh Education Management Trust Gold Medal (including SINGER brand electrical appliances
for Management Excellence. Also received the Industry- under license).
Southeast Bank Award for Management Excellence.
Served as Special Assistant to the Chief Adviser of the Mr. Walker also serves as a director of Singer
former Caretaker Government of Bangladesh in 2008, Corporation Limited, Singer Asia Sourcing
as a Cabinet Minister. He was in charge of Ministry of
Industries, Ministry of Civil Aviation & Tourism and Limited, Singer Bangladesh Limited, Btindia
Ministry of Youth & Sports. Limited, Singer India Limited, Zortmay
He did Masters in Sociology and Masters in Journalism Investments (Pty) Limited, Dresden Property
from University of Dhaka. Attended numerous courses in Investments (Pty) Limited, Singer Pakistan Limited,
Marketing, Sales Promotion and Finance at home and Singer (Sri Lanka) PLC, Singer Industries
abroad. He is involved with many socio-cultural
(Ceylon) PLC, Regnis (Lanka) PLC, Reality Lanka
organization.
Presently Mr. Jamil is the Board Member of Limited and Singer Thailand PCL".
International Chamber of Commerce-Bangladesh,
Member of the Trustee Board of Bishwa Sahittaya
Kendro and Member of the Academic Council, BRAC
University. Chairman of the Trustee Board of Alamgir
Kabir Film Centre and Member of Advisory Board of
Faria Lara Foundation.

14
BOARD OF DIRECTORS

Mr. A.M. Hamim Rahmatullah Mr. Sajidur Rahman Khan Mr. Jamal Uddin Ahmad Mr. Mizanur Rahman
Director Director Director Director

Mr. A. M. Hamim Rahmatullah has been serving Joined the Board of ILFSL on September 24, A reputed practicing Chartered Accountant of Mr. Mizanur Rahman is the recently retired
as the Managing Director of Singer Bangladesh 2006. the country, Mr. Ahmad is the Managing Partner Managing Director of Shaw Wallace
Limited since February 1, 2009. On July 10, of Ahmad and Ahmad, Chartered Accountants. Bangladesh Ltd. and its Nominated Director on
2009, he was appointed the Vice President of Mr. Khan is the Marketing Director of Singer He is also the Chairman of Jaroms Industries the Board of ILFSL. He is also Director of SW
Singer Asia Limited. Prior to his new assignment, Bangladesh Limited. Prior to his new assignment Limited. He has working experience with leading Shipping Ltd., SW Multimedia Ltd. and House of
he served as Director & Chief Operating Officer he served as Finance Director. He has been with business houses at home and abroad, like British Consultants Ltd.
of the Company. the Company for the last 36 years and held American Tobacco Ltd., the Burma Eastern Ltd.,
many key positions in Singer Bangladesh KPMG, Price Waterhouse & Co. and A.F.
Limited. Mr. Rahman holds a BA (Hons) degree in
Mr. Hamim is the President (2009-2011) of Ferguson & Co. Mr. Ahmad is former Deputy
Prime Minister of the Government of the Peoples Economics from University of Dhaka and is an
Foreign Investors Chamber of Commerce and Associate of the Institute of Bankers (UK). He is
Industry (FICCI). He is a member of the Republic of Bangladesh, former President of the
Institute of Chartered Accountants of also Honorary Advisor to the International
International Relations Committee, Metropolitan
Bangladesh (ICAB), a Board Member of the Container Shipping Association and Executive
Chamber of Commerce and Industry.
International Federation of Accountants (IFAC), Trustee of the NBR-registered educational
Member of Public Sector Committee of IFAC and charity, A F Mujibur Rahman Foundation.
Holds an MBA specialized in Marketing from
former President of the South Asian Federation
the Institute of Business Administration (IBA),
of Accountants (SAFA). Mr. Mizanur Rahman is son of late A F Mujibur
University of Dhaka. He started his professional
career in 1985 with Philips Bangladesh Limited. Rahman ICS of Gerda, Faridpur.
In 1988 he joined Singer Bangladesh Limited.
During his 22 years of service with the company,
he held key management positions in different
capacities.

He participated in a good number of


professional trainings and workshops held in
USA, Canada, Europe, Australia and Asia.

16
BOARD OF DIRECTORS

Mr. Gavin J. Walker


Mr. Faiz Ahmad Director
Mr. Mohammed Iqbal Hossain Chowdhury Mr. C.K. Hyder Mr. Mustafizur Rahman
Director Director Independent Director Managing Director

Mr. Faiz Ahmad is Director of Shaw Wallace Joined the Board of International Leasing in Joined the Board of International Leasing on Mr. Mustafizur Rahman has been serving as
Bangladesh Limited and SW Shipping Limited October 28, 2009. December 5, 2007 as Independent Director. Managing Director of International Leasing
and nominated Director of Shaw Wallace Mr. Hyder served the Metropolitan Chamber of since June-2006. He joined the Company in
Bangladesh Limited in the Board of ILFSL. Mr. Md. Iqbal Hossain Chowdhury is the Commerce and Industry , Dhaka (MCCI) and August 2003 and worked as Senior Vice
Managing Director of PHP Float Glass Industries Bangladesh Employers' Federation (BEF) for President and Head of Operations. Mr. Rahman
more than 44 years as the Secretary-General. started his career in IDLC of Bangladesh Ltd. He
Mr. Ahmad is one of the senior most Chartered Limited. A young and dynamic entrepreneur, Mr.
Currently, he is the Adviser to the Committee also worked with Vanik Bangladesh Ltd.
Accountants of Bangladesh. He was member of Chowdhury obtained his BBA from North
(Board) of the MCCI and BEF, with the status of (presently Lanka Bangla Finance Limited) and
Bangladesh Tea Association from 1972 to 1992 Eastern University, Boston, USA. He is also
a member of the Committee. With his long Union Capital Ltd. He has over 23 years'
during which period he was a Chairman/Vice associated with other PHP companies, which experience on trade and employment related experience in the leasing industry of the country.
Chairman for a number of terms. He attended have diversified interest in steel, power, glass, issues, Mr. Hyder represented many advisory/ He is an MBA from IBA, Dhaka University.
FAO/UNCTAD meetings in various countries of shipping, commodity trading and agro-based implementation committees of the Government
Asia, Europe and Africa from 1982 to 1995 and concerns. PHP is one of the major industrial relating to trade and commerce and industrial He is also member of IBA Alumni Association
was elected Vice Chairman of FAO Conference groups in the country having an annual turnover relations. He was a Member of successive Pay and Dhaka University Economics Department
in Rome in 1994. of Tk. 20 billion. He is the son of Mr. Md. and Service Commissions and Wages and Alumni Association (DUEDAA).
Mizanur Rahman Chowdhury, a renowned Productivity Commissions of the Government of
business personality of the country and Bangladesh. Educated in Kolkata and London,
Chairman of PHP Group. Mr. Hyder holds postgraduate degrees in
Commerce and Law. He also obtained
postgraduate diplomas from several renowned
institutions like Harvard Business School,
Australian Graduate School of Management,
International Institute for Labour Studies.
Mr. Hyder represented Bangladesh Employers in
over 22 annual conferences of the International
Labour Organization (ILO) and headed several
Technical Committees of the same.

18
MANAGEMENT TEAM INTERNATIONAL LEASING SECURITIES LTD. (ILSL)

8
5 3 7
4 1 2 6

1. Mustafizur Rahman 5. Md. Saiful Islam Akhand 3 2


Managing Director Assistant Vice President And Chief Financial Officer 1. Shrabani Bhattacharjee
1 Vice President and Chief Operating Officer
2. Nehal Ahmed FCA 6. Abul Kalam Azad
Deputy Managing Director And Company Secretary Assistant Vice President And Head of Credit Administration 2. Md. Humayan Kabir ACA
3. Md. Monirul Islam 7. Syed Minhaj Ahmed Assistant Vice President and Chief Financial Officer
Senior Vice President And Head of Operations Assistant Vice President And Head of Business Development
3. Md. Rafiqul Islam
4. Shihabul Arefin Khan 8. Mohammed Ibrahim Company Secretary
Assistant Vice President And Head of Treasury Senior Manager And Head of Chittagong Branch

20
ABOUT subsidiary company
International Leasing Securities Ltd. (ILSL)
International Leasing Securities Ltd. (ILSL), a fully RANGE OF SERVICES
owned subsidiary company of ILFSL. It is set-up in a sprawling
5000 square feet office space to provide a conducive work Brokerage Services
environment. With a team of dedicated highly qualified
professional people providing best possible services to our Executing
? Online Trade for all types of clients in Dhaka
clients, we are set to make an impact in the capital market. Stock Exchange

Custodial Services
Services
? of Central Depository System (CDS) like
Beneficiary Owners (BO) account opening and
maintenance, Dematerialization and Re-materialization of
securities, Transfer and Transmission of securities,
Pledging, Un-pledging and confiscation of securities etc.
Fire-proof
? locker facilities to keep customers' physical
securities in safe vault

Margin Loan facilities


DIFFERENT COMMITTEES
Margin
? loan facilities to clients through margin trading
MANAGEMENT COMMITTEE
Value Added Services
ILSL has established a state-of-the art technological system EXECUTIVE COMMITTEE Mr. Mustafizur Rahman, Chairman
enabling clients to receive maximum technological advantage Mr. Nehal Ahmed, Member
in managing their investment accounts. Some unique features Mr. Jamal Uddin Ahmad, Chairman Mr. Md. Monirul Islam, Member
of value added services offered to our clients include: Mr. Mahbub Jamil, Member Mr. Shihabul Arefin Khan, Member
Mr. Mizanur Rahman, Member Mr. Md. Saiful Islam Akhand, Member
Phone Banking-
? 24 hour access to a client's account to Mr. A.M. Hamim Rahmatullah, Member Mr. Abul Kalam Azad, Member
enable him/her to know details of investment like stock Mr. Sajidur Rahman Khan, Member Mr. Syed Minhaj Ahmed, Member
position, purchase power, value of investments et al.
Mr. Mohammed Iqbal Hossain Chowdhury
SMS Service-
? SMS message confirming execution of trade Mr. Mustafizur Rahman, Member ASSET-LIABILITY COMMITTEE
with stock, quantity and rates, Alert message for additional
margin deposit, Alert message about execution of Trigger Mr. Mustafizur Rahman, Chairman
Sale
AUDIT COMMITTEE Mr. Nehal Ahmed, Member
E-mail Service-
? Daily e-mail (end of day) to each BO Mr. Md. Monirul Islam, Member
account holder's address containing summarized Trade Mr. C.K. Hyder, Chairman Mr. Md. Saiful Islam Akhand, Member
Confirmation and Portfolio Statement Mr. Faiz Ahmad, Member Mr. Shihabul Arefin Khan, Member Secretary
Fax- Fax
? message (end of day) to each BO account Mr. Sajidur Rahman Khan, Member
holder's number containing summarized Trade ANTI-MONEY LAUNDERING COMMITTEE
Confirmation and Portfolio Statement REMUNERATION COMMITTEE
Mr. Md. Monirul Islam, Chairman
BOARD OF DIRECTORS Mr. Mahbub Jamil, Chairman Mr. Shihabul Arefin Khan, Member
Mr. Jamal Uddin Ahmad, Member Mr. Md. Saiful Islam Akhand, Member
Mr. Jamal Uddin Ahmad, Chairman Mr. Mizanur Rahman, Member Mr. Al-Mamun, Member
Mr. Mahbub Jamil, Director
Mr. Mizanur Rahman, Director
Mr. Sajidur Rahman Khan, Director
Mr. Mustafizur Rahman, Director
Mr. Nehal Ahmed, Director

22
VALUE ADDED STATEMENT OPERATIONAL PERFORMANCE
The value added statement provides a detailed account of the distribution of the value created by an organization. The
following table indicates how much value International Leasing And Financial Services Ltd. added for the shareholders,
employees, government and how much retained within the company for further investment.

(Figures in BDT) Taka in million


2009 2008
Amount Percentage Amount Percentage Year 2009 2008 2007 2006 2005
A. Business Performance
Contract 3,428.0 3,186.3 3,257.1 3,000.2 2,791.2
Value added Growth (%) 7.6% -2.2% 8.6% 7.5% 16.6%
Operating revenue 1,668,276,983 1,263,179,262 Disbursement 3,421.0 3,122.1 3,394.9 2,910.7 2,889.0
Cost of borrowing (1,285,727,816) (1,037,394,163) Growth (%) 9.6% -8.0% 16.6% 0.8% -6.2%
382,549,167 225,785,099 B. Financial Performance
Other income 3,628,518 1,015,977 Total Revenue 1,671.9 1,264.2 1,035.3 842.2 673.6
Total Expenses 1,364.6 1,083.3 920.1 750.5 540.7
386,177,685 226,801,076
Operating Profit 307.3 180.9 115.2 91.7 132.8
Provision for future losses (49,150,756) (55,849,244) Financial Expenses 1,285.7 1,037.4 785.6 672.4 445.3
Operating expenses excluding staff cost & depreciation (30,354,907) (18,646,407) Profit Before Tax 258.1 125.0 127.7 91.7 132.8
(79,505,663) (74,495,651) Provision/Deferral of Tax 53.0 12.0 10.0 (10.0) (12.0)
Net Profit After Tax 205.1 113.1 117.7 101.7 144.8
Portfolio 12,468.2 10,044.2 8,164.9 6,572.1 5,664.5
306,672,022 100% 152,305,425 100%
Long Term Debt 2,943.7 2,283.4 3,441.1 3,009.1 2,672.8
Paid Up Capital 291.0 253.0 230.0 180.0 157.9
Distribution of value addition Shareholders' Equity 924.4 757.2 690.2 504.9 466.4
Shareholders as dividend 77,456,707 25.26 75,900,000 49.83 Dividend % 75% 30% 30% 25% 60%
Employees as salaries and other benefits 38,266,501 12.48 23,771,213 15.61 C. Financial Ratios
Government as income tax 53,034,398 17.29 11,972,140 7.86 Return on Equity 22.2% 14.9% 17.1% 20.1% 31.0%
Earning Per Share 70.5 38.9 46.5 56.5 91.7
168,757,606 55.03 111,643,353 73.30
Debt Equity Ratio 3.2 3.0 5.0 6.0 5.7
Fin. Expense Coverage Ratio 1.2 1.2 1.1 1.1 1.3
Retained for reinvestment Net Asset Value 317.7 299.3 300.1 255.5 255.4
Depreciation & amortisation 10,286,365 3.35 3,510,892 2.31 Dividend Payout Ratio 106.4% 77.2% 64.5% 44.2% 65.4%
Retained earnings and other reserves 127,628,051 41.62 37,151,181 24.39
137,914,416 44.97 40,662,073 26.70 Notes:
?Net Profit in 2009 increased because of increase in income from brokerage and PD operations.
306,672,022 100.00 152,305,425 100.00 ?Portfolio increased in 2009 due to increase in term financing, short-term financing and margin loan to customers.
?Profit Before Tax decreased in 2006 from previous year due to rise in financial expenses.
Employees' statistics ?Return on Equity fall in 2006 due to fall in net income and increase in equity; also it fall in 2007, due to increase in equity
Number of employees at year end* 54 50 following Initial Public Officering of shares.
Operational income per employee 30,894,018 25,263,585 ?Net Asset Value increased in 2007 due to increase in Net Equity following IPO and increased Retained Earnings.
Value added per employee 5,679,112 3,046,109 ?Dividend Per Share increased in 2009 due to higher dividend declared for the year.

24
FINANCIAL PERFORMANCE SNAPSHOT OPERATIONAL AND FINANCIAL PERFORMANCE REVIEW
Earnings Per Share
EPS shows a negative trend in 2007 following a 28% increase of
shares through IPO. The trend also shows a substantial growth in
2009, as our revenue income made a strong 32% rise.

Average annual growth of portfolio is 21% during the last 5 years.


Current portfolio size is Tk. 12.5 billion, which was mere Tk. 5.6
billion in 2005. In 2009, major components of Portfolio have been
Loans, Lease and Investments.

PORTFOLIO COMPOSITION (BDT M.)


2009 2008
Loans 4695 38% 3268 33%
Lease 3871 31% 3950 39%
Net Asset Value
Investments* 1774 14% 1679 17%
Our nest asset value is 317.7 as per accounts of 2009. The value
Loans to Customer Acct. 1157 9% 193 2% remains in steady position for the last 5 years.
Other Receivables 537 4% 532 5%
Income Receivable 436 3% 423 4%
12,468 100% 10,044 100%
*Includes govt. securities (bills/bonds), investment in shares and
investment in stock-exchange memberships.
Revenue
Average annual growth of revenue is 29% for the last 5 years.
Major source of revenue is Lease Income, Interest Income from
Direct Income, Income from Treasury and Income from Brokerage
Operations.
2009 2008 2009 2008
Value in BDT Percentage
Intt. Income from Lease 514,965,682 620,235,926 31% 49% Shareholers' Equity
*
Intt. Income from Direct Fin. 527,310,968 450,050,177 32% 36% Our company's Equity has grown by 24% annually during the last
Intt. Income from Home Loan 18,107,634 3,615,406 1% 0% 5 years. It increased by 37% in 2007 following offering of 500,000
Intt. Income from Treasury Ops 182,652,695 75,543,169 11% 6% ordinary shares to general public through Initial Public Offering
Intt. Income from PD - Coupon 81,499,875 67,976,044 5% 5%
(IPO). Present Equity size (2009) is Taka 924.4 million.
Intt. Income on Margin Loan 109,678,615 8,145,772 7% 1%
Inv. Income-Div. and Cap. Gain 45,957,541 -4,909,288 3% 0%
Other Income from PD Ops-
Discount & Capital Gain 50,417,662 24,370,008 3% 2%
Fees and Commission-Leasing 7,867,231 11,104,644 0% 1%
Brokerage Fees 129,819,080 7,047,404 8% 1%
Other Operating Income 3,628,518 1,015,977 0% 0%
1,671,905,501 1,264,195,239 100% 100%
*Includes time loan, work order and staff loan.

26
MANAGEMENT DISCUSSION AND ANALYSIS Million. Major components of G & A expense include salary &
allowance, office & other rent and printing & stationary. In our
2005
Cash Flow from Operations -21.90
2006 2007 2008 2009
-5.73 -614.75 -258.05 -223.87
view, our magnitude of G & A expense is low (i.e. 4.82%),
Last Five Years Component Ratio 2009 2008 Growth Total Cash Flow -29.22 15.19 72.85 292.73 107.12
compared to G & A expenses incurred in similar institutions
International Leasing has gone through remarkable Earning Per Share 70.5 38.9 81.4% (banks and FIs) both at home and abroad.
transformations during the last five years. It was the period of
outward orientation (by going to public), big expansions and Net Asset Value 317.7 299.3 6.1% 2005 2006 2007 2008 2009 Economic Outlook
voluminous growth of portfolios. Our manpower size increased Ope. Profit Margin 15.4% 9.9% 56.1% General and We have seen that our Economy has withstood the global
from a tiny no. of 26 to more than double. We construe it as a economic turmoil of 2008-2009 periods quite well. This certainly
natural process of growth, which has demonstrated remarkable Net Profit Margin 12.3% 8.9% 37.2% Administrative Expenses 21.8 25.4 35.3 41.4* 65.8*
proves the resilience of our economy as well as our
outcome as a result of an enlightened Board and a dynamic Return On Equity 22.2% 14.9% 48.6% Total Expenses 540 751 920 1,083 1,365 entrepreneurs. With a democratic environment prevailing, we
Management. Return On Assets 1.5% 1.0% 45.0% % of GNA Exp. 4.0% 3.4% 3.8% 3.8% 4.8% believe the economy will move into positive directions gradually.
2009 2008 2007 2006 2005 5 Years’ *Operating expenses less Depreciation, Amortization and Repair of Assets. We believe there will be a great deal of investments in
(Million Taka) growth
Our critical growth areas have been in Brokerage Operations and infrastructures especially in communications, telecom, power and
Primary Dealership (PD) Operations. Due to the changing nature energy. We also have prospects to tap into labour-intensive
Assets 13,608.0 10,879.6 8,590.1 6,615.9 5,779.4 135% of business, revenue stream from traditional products like Term
Paid up industries, as the fast growing industries of China are becoming
Finance and Lease Finance have become stable. Growth costlier in terms of labour cost. We also have prospects in Small
capital 291.0 253.0 230.0 180.0 157.9 84% prospective from Investments products like equity shares, debt and Medium scale industries like shoes, textiles, furniture, toys,
Portfolio 12,468.2 10,044.2 8,164.9 6,572.1 5,664.5 120% securities like treasury bonds/bills show more prospects.
plastic goods, electrical and electronics items, car parts etc. We
Net Income 205.1 113.1 117.7 101.7 144.8 42%
Major components of Revenue are as under: anticipate growth in these SME-based industries as well.
As is revealed, our assets size has grown by 135%, whereas our 2009 2008 2009 2008 We are facing major challenges in our export earnings,
Portfolio size has more than doubled during the period. Our Paid Value in BDT Percentage manpower exports and inflationary pressure. All these indicators
Up capital also grew by 84%. have been not been in our favour by the end of 2009. Our growth
Intt. Income from Direct Fin.1 527,310,968 450,050,177 32% 36%
prospects hinges critically in these factors.
Diversifications Interest Income from Lease 514,965,682 620,235,926 31% 49%
We have been active all through our way to be innovative and Intt. Income from Treasury 182,652,695 75,543,169 11% 6% With a combination of strong remittance growth and gradual
customize our operations in line with market trend and client- Brokerage Fees 129,819,080 7,047,404 8% 1% momentum of business activities, the excess liquidity will create
demand. We were the original only Non-bank Financial Institution strong supply both in credit as well as capital market.
Intt. Income on Margin Loan 109,678,615 8,145,772 7% 1%
among 9 banks/FIs that obtained the Primary Dealership (PD)
license back in 2004 to deal with Government Treasury Securities Income from PD Operations2 131,917,537 92,346,052 8% 7% We are bullish about the prospects of the capital market for next
(bills/bonds) and act as buyer & seller to create a Secondary Others3 75,560,924 10,826,739 5% 1%
several years. With a severe supply-demand mismatch of shares,
Market (present members=16). To tap market potential, we the market is poised to move into positive directions. We believe
1,671,905,501 1,264,195,239 100% 100% that a strong regulatory environment, participation of
diversified into capital market operations and started Stock 1. Income from Time Loan, Work Order and Staff Loan.
Brokerage Operations (through subsidiary company) in 2008. We international investors and global/frontier funds, divestment of
2. Coupon Income Discount Income-Bills/Bonds and Gains from Bills/Bonds. Financial Expenses
have also started Real Estate Financing. We are focused on 3. Income from Home Loan, Dividend & Capital Gain, Commission, Fees, Exchange & profitable public enterprises, enhanced participation of private
We incurred a financial expense of Tk. 1,286 Million in 2009, which ventures in capital market as a means of funding and the
expanding our operation across the country, and started our Brokerage and Other Operational Income.
is 94% of total expense of Tk.1365 Million. The magnitude of
operations in Chittagong area in 2008. These expansions will go a enhanced presence of professional market analysts will help an
Stock Brokerage Financial Expense suddenly was down in 2009, due to imposition orderly and growing market operations.
long way towards consolidating our position in the industry. of maximum interest rate ceiling of 13% by Bangladesh Bank in
Revenue from our Stock Brokerage Operations has shown
Basel II Implementation substantial growth in 2009. Our Brokerage House has achieved May 2009. From then on, interest rate scenario has shown a Futures Ahead
In line with the directive given by the Central Bank, we have been tremendous growth in last year, which achieved #16h position as declining trend for both borrowing and lending. Imposition of We are working continuously to make our Company a truly
preparing ourselves to comply fully with Basel II implementation per DSE ranking among all brokerage houses in December-2009. downward interest rate was necessary in 2009 following the diversified Financial Institution as a result of evolving markets
guideline. We are working to establish our relevant capital Average daily turnover was TK. 164 million during the year. occurrence of crisis in global financial markets, to combat circumstances and trends. We intend to move with a solid
requirement- to reach Minimum Capital Requirement (MCR) financial crisis as well as inflation. momentum, without compromising our financial sustainability.
2009 2008 2009 2008
under Risk Based Capital assessment. Bangladesh Bank has 2005 2006 2007 2008 2009 Our market impression and reputation are important to us. We
already issued a ROADMAP for “Implementation of Basel II In Value in BDT Percentage intend to keep our customer-friendly and flexible orientation,
Financial Institutions”, in which we are a relevant party. We are Total Revenue 1,671,905,501 1,264,195,239 100% 100% Financial Expenses 445.3 672.4 785.6 1,037.4 1,285.7 serving our customers well and in customized way, at the same
working to ascertain our different types of assets condition in line Brokerage Fees 129,819,080 7,047,404 8% 1% Total Expenses 540.7 750.6 920.1 1083.3 1364.6 time take dynamic actions to grow and reach bigger
with various risks involved viz. credit risk, market risk and % of Fin. Exp. 82.3% 89.6% 85.4% 95.8% 94.2% destinations.
Intt. on Margin Loan 109,678,615 8,145,772 7% 1%
operational risk. We are hopeful about implementation of Basel II
Roadmap in time. We are also taking steps to enhance the capital G & A expenses Traditionally Financial Expenses is the highest component of cost We intend to continue with our diversification plans. Our plan is
base of our Company to required level (i.e. Tk. 50 crore as We incurred a General and Administrative (G & A) expense of Tk. for any financial institution. It mainly depends on the interest rate to intensify our presence in the capital markets. Our Stock
minimum paid-up capital) within stipulated time-frame i.e. 65.8 million in 2009, which is 4.82% of total expense of Tk. 1,365 scenario prevailing in the market. We experienced higher interest Brokerage House is already established in the market, which has
December 31, 2010. rate regime from 2006 onwards till middle of 2009. Subsequently been operating for the last two years. We intend to expand stock
interest rate trend made a vertical reverse trend in the market. brokerage service throughout the major places in Dhaka and in
SME Financing other cities. We are also interested to start Merchant Banking
Also borrowing rate was slashed substantially both for Banks and
The Government as well as the Central Bank has attached high FIs. So we have found a lower percentage of interest cost in 2009. services, which is now required to offer issue management and
importance towards providing financing to Small and Medium portfolio management services.
Enterprises (SMEs), which is the backbone of our economy. We are
planning to extend our service to this vital sector of the economy. Operating Cash Flow We are also expanding our services geographically, by extending
Bangladesh Bank has set aside a fund for Tk. 230 billion, to be By the very nature of business, all our business cash out-flow our operations in the city of Sylhet, which in our view has got
disbursed by the banks/FIs. We plan to offer SME financing belongs to Operating Cash-flow, since financing to clients is our enormous economic and financial growth prospects. We are
formally in near future. main business. As such, all the financing made to clients like planning our operations in Sylhet by offering stock brokerage
Lease Financing, Term Financing and other modes belong to our services as well as other services like deposit schemes, home loan
Operational Performance in 2009 Operating Cash-flow, rather than INVESTMENT CASH FLOW. It has and other financial services.
As evidenced from the following key Ratio Analysis, we made a been the industry trend (i.e. Financial Institutions) that Net
significant progress in all aspects of operations in 2009, thanks to Operating Cash-flow becomes negative, rather than positive
our vigorous diversification plans executed during last five years. operating cash-flow, as is the general pattern for companies
belonging to other industries.

28
OPERATIONAL ACTIVITIES OF THE COMPANY DURING 2009

13th Annual General Meeting

13th Annual General Meeting of the Company in progress.

Board meeting is in progress

International Leasing was awarded “Certificate of Merit” by Institute of Chartered Accountants of Bangladesh (ICAB)
for best published accounts for the year 2008 under “Financial Institutions” category on December 30, 2009. Audit Committee meeting
Mr. Mustafizur Rahman, MD of ILFSL receives the award from Mr. Faruk Khan, Honb'le minister for Commerce.

30
RISK MANAGEMENT
Risk is an integral part in any financial transaction. As a prudent condition. Our Treasury department continually monitors market
and responsible financial institution, the company attaches top interest rate regime and liquidity position and provides feedback
priority in ensuring safety and security of the finances that are to the Management.
being made.
Liquidity Risk
Credit Risk Liquidity Risk arises out of the company's inability to meet short
It arises mainly from lending and treasury businesses. This is the term obligations to its lenders/creditors. It arises from the adverse
potential loss arising from the failure of the counterparty to mismatch of maturities between assets and liabilities.
perform as per contractual agreement with the Financial
Institution. The failure may result from unwillingness of the Liquidity requirements are managed on day-to-day basis by the
counterparty or deterioration in his/her financial condition. Treasury Department. It is responsible for ensuring that sufficient
Therefore, the Company's Credit Risk Management actions have funds are available to meet short term obligations, even in crisis
been designed to address these issues. situations, and for maintaining diverse funding sources. The
Treasury also oversees the asset liability maturity position,
The company has segregated the duties of the recommend and implement appropriate measures to encounter
officers/executives involved in credit activities. Marketing, Credit liquidity risk.
Appraisal and Disbursement activities are performed by Business
Development Department. After Execution of the loan, the client Operational Risk
account is monitored by the Credit Administration Department
(CAD). It is responsible to monitor clients' payment track records Operational Risk is the potential loss that may arise due to
and ensure adequate follow-up and recovery. ineffective Internal Control which may lead to mistake or fraud,
not putting in place efficient system and procedure or ignoring
the compliance requirement of the regulators or non-compliance
For initial credit assessment, the company has formed a of corporate government practices.
Management Committee (MC) comprising senior personnel of
both Operations and Finance departments. After initial scrutiny, if
proposal is found viable, then the MC sends the proposal to the To address the operational risks, an appropriate internal control
Board Executive Committee (EC) which normally approves all system is in place within the Organization. A separate Internal
credit proposals. Audit Department oversees the compliance of approved
operational guidelines and procedures in all activities. It also
oversees the compliance of regulatory requirements. The Internal
Rigorous Credit Appraisal is done by the Operations department Auditor is directly reportable to the Board Audit Committee and
to assess viability of the proposal from all standard contexts like to the Chief Executive regarding the state of compliance of
Marketing, Economic, Technical, Management and Financial. A set different operational activities and also different observations
of standard operating practices is done to ensure exercise of Due regarding operational issues and/or lapses/shortfall.
Diligence during the evaluation process.
Assets Quality
For assessing the credit risks, the following measures are We are putting on all-out efforts to maintain our assets quality vis
followed: a vis complying with all the requirements of Bangladesh Bank for
Loan Provisioning. We take proper screening mechanism before
Multilayer approval process
n providing any loan. Against the average rate of classification of
10.79% for banks combined, our average Non-performing Loan
Strict adherence to Bangladesh Bank guideline on credit
n (NPL) Ratio was 8.62% during last 3 years. Against the non-
ceiling on any single borrower/group performing loans we have made a cumulative provision of Taka
Mandatory collection of credit report from Credit
n 350 million upto December 31, 2009. We meticulously comply
Information Bureau (CIB) with the Bangladesh Bank guideline for Interest Suspension and
Provisioning against the overdue and non-performing loans.
Evaluating payment performance of a borrower (both with
n Interest amount is transferred to Interest Suspense account
the company and outside financial institution/banks) rather than showing as Income in the Income Statement when a
before financing lease/loan falls overdue for 3 months. We also create sufficient
provision when an overdue account becomes classified after 6
Adequate insurance coverage for leased assets
n months.
Intensive monitoring and follow-up actions by Credit
n
Administration Department (CAD)
Strong scrutiny of the compliance of credit policies by
n
Internal Audit Department
REAL ESTATE FINANCE
Market Risk
Market Risk refers to the risk of fluctuation of various market
variables like interest rate, exchange rate, availability of liquidity Real Estate Finance is provided for purchasing
with the lenders/depositors, prices of securities in the stock
exchanges. The year 2009 was a challenging year as far as market apartments/land/building, both to individual or
risk was concerned. The pervasive global financial crisis posed company. Here Real Estate Finance is provided to
threat for businesses, specially foreign trade related enterprises. Real Estate Company for completing their Real
To combat these market risks, we have taken measures to
Estate Project.
diversify our financing bases. We have put-up strong emphasis to
mobilize retail and institutional deposits. We have also adjusted
our lending rates to cope with downward market interest rate

32 60
STATEMENT OF CORPORATE GOVERNANCE
Corporate governance is the system of internal controls Monitoring significant business risks and reviewing
l Directors' composition taken to minimize operational risks and detect any error in
and procedures by which an individual Company is how they are managed The Board is composed of sound professional people each various operational areas to ensure rectification in the first
managed. It provides a framework that defines the rights, Delegation to Board Committees and Management
l carrying wealth of experience in corporate and business place. Although a full scale control system is not possible
roles and responsibilities of different of financial and operational authorities level. Most of the directors (excluding one individual to establish, but it helps the Management to keep effective
groups—Management, Board and Shareholders—within director and one independent director) are representative control over operations and minimize deviations as far as
an organization. Periodic and timely reporting to the shareholders
l directors and they do take company's interest first, other possible.
about the affairs and performance of the company than any personal interest. In formulating board Key measure taken for ensuring effective internal control
The primary role of corporate governance is played by the Ensuring appropriate Organizing and Staffing with
l committees, utmost care is taken that the members of includes:
Board of Directors. It is the Board that formulates the appropriate delegation and accountability committees have requisite level of expertise to discharge
vision, objectives and strategic goals. The Board's their responsibilities in respective areas. Regular Board meeting held with core strategic
l
dynamism, guidance and stewardship are all that drives Independent Director issues dealt and resolved
the company towards sustainable growth. The Independent Director Acts as a third party for having a Directors' Compensation
Management's role is to execute those directives in a Regular Executive Committee meeting held to
l
“neutral perspective” over policy-related issues of the For attending Board and Committee meetings each consider all Credit Proposals and approve/decide on
professional, proactive at the same time ethical manner. Company. Having no share-based interest with the director receives Tk. 4000 as honorium. Other than that, no the proposals. As an extended arm of the Board, the
company and having no attachment with the non- director receives or draws any salary/allowance. EC also takes up other important operational issues.
ILFSL believes that the guidelines and procedures as executive directors and management, the Independent
exercised by the Company comply mostly with the Director aids in ensuring neutrality and fairness over Related party transactions An Internal Audit and Compliance department,
l
Corporate Governance related notification no. policies made by the Board. Details of related party transactions are given in note # 40 reporting directly to the Chief Executive and Board
SEC/CMMRRCD/2006-158/Admin/02-08 dated February 20, of Audited Accounts of this Annual Report. Audit Committee about the state of compliance with
2006 of SEC and DFIM Circular no. 7 dated September 25, Mr. C.K. Hyder, out of Board of Ten, is the Independent the standard operating procedures of different
2007 of Bangladesh Bank. Director. He possesses extensive business knowledge and operational department.
Role of Chairman and Managing Director
experience. The Chairman and the Managing Director of the Company A comprehensive annual budgetary system, directly
l
BOARD AND ITS DIFFERENT COMMITTEES are separate persons. The role of Chairman and Managing approved by the Board to keep track of progressive
The Board of ILFSL comprises of members from renowned Corporate Governance Framework Director are independent and separate. The Chairman performances of various operational parameters
corporate houses as well as individuals. It is the Board oversees the policy related matters and the Managing throughout the year.
members' dynamism, foresightedness and wisdom that Director oversees the operational matters as per directives
deliver the appropriate policies, strategies and guideline to of the Board. Monthly Business Report generated by making
l
run the Company. Variance Analysis of the actual performance in
Share
holders various operational areas with the proportionate
Audit Committee budgetary targets
The Board ensures that the company achieves superior
The Board The Audit Committee is formed with members having
financial results and stewards its leadership position in the Review and analysis of fund position on daily basis
l
And relevant experience in finance and accounting, to oversee
industry. Board Secretariat the audit of Company's financial reports as well as
Well developed and defined Service Rules and
l
adequacy of company's internal control. The audit
The Board consists of ten members, who bring in wide regulations relating to personnel issues
Board committee comprises of members of the Board.
range of expertise and perspectives. Most of the directors Committees Operational Manuals of the company for guiding
l
are nominated directors, except one individual director Credit and Investment management, Asset Liability
The committee is empowered, among other things, to
and one independent director. The Board members Management, Internal Control and Information
examine any matter relating to the financial affairs of the
perform the following major tasks: Management Technology. This also complies with the guidelines of
Company and to review all audit and inspection programs,
internal control systems and procedures, accounting Bangladesh Bank to address core risk areas of
Addressing the major policy, regulatory and strategic
l policies and adherence to compliance requirements. This business.
issues and providing proper guidelines Management would ensure that a sound financial reporting system in is
Committee Regular meeting of the Management with all
l
Monitoring the financial performance, assets quality
l place, which is well managed, providing accurate,
department heads to address operational issues and
and overdue position of the company periodically appropriate and timely information to the Board of
devise appropriate action plans
Directors and stakeholders.
Evaluating and approving the Annual Budget of the
l Operational
Departments
company including major capital expenditure Remuneration Committee
proposals The Head of Internal Audit and Compliance has direct
access to the Committee. The Committee is directly The Remunerations committee is formed with the
Evaluating annual performance and approving the
l reportable to the Board. responsibility for ensuring that compensation and other
Controllers: External Auditors and Internal Control
Financial Audit Report. awards encourage executive management to act in ways
that enhance the Company's long-term profitability and
Appointment and evaluation of the performance of
l Internal Control value. It is also responsible for ensuring that the
the Managing Director and senior Management The Board of Directors is primarily responsible for ensuring
Board Meetings remuneration packages offered to management are
team that a proper and effective control system is in place to run
During the year under review, the Board of Directors held commensurate with the level of responsibilities of the
Ensuring that the senior management team has the
l six meetings. the operations of the Company. It is meant to ensure executive, and appropriate in light of the Company's
requisite skills and experience to perform their smooth functioning of the company along-with performance.
functions effectively for maximizing shareholders' compliance of all internal and external rules and
There is extensive staff participation in the decision regulations.
value making at all levels of the Company and strategic The committee furthers these goals by linking executive
Monitoring the adequacy, appropriateness and
l recommendations of material value flow to the Board for compensation to the long-term profitability of the
operations of Internal Control decision. An effective internal control also ensures that measures Company and long-term increases in share value relative

34
to competitors and other comparably situated Companies.
It also oversees all promotions of the employees
Financial Reports are circulated as appropriate within and
outside the organization. The Management Report is sent
CHARTER OF THE BOARD AND ITS DIFFERENT COMMITTEES
considering their performances and other related criteria. quarterly to the Board of Directors containing Financial The Board of ILFSL comprises of members from corporate and learn about state of internal compliance first-hand.
and Management Accounting reports. The Half Yearly and shareholders as well as individuals. It also comprises of
COMMITTEES OF THE MANAGEMENT Annual Reports are sent to all shareholders with Independent Directors. Remuneration Committee
comprehensive details beyond statutory requirements. The To ensure proper running of business of the company and to The Remunerations committee is vested with the responsibility
Board of Directors accepts the responsibility for oversee different operational aspects of the Company, the Board for ensuring that management compensation and other awards
Management Committee
preparation of financial reports, maintaining adequate has formulated different committees to represent the Board in encourage executive management to act in ways that enhance
This is the core committee of the Management, records for safeguarding the assets of the Company, different strategic areas. Different committees and their charters the Company's long-term profitability and value. It is also
empowered to deal with any operational issues of the preventing and detecting fraud or irregularities, selecting controlling their scope of works are delineated below: responsible for ensuring that the remuneration packages offered
company. The committee also scrutinizes all suitable accounting policies, apply those policies to management are commensurate with the level of
credit/investment proposals before placing them to the consistently and making reasonable, prudent judgements Executive Committee responsibilities of the executive, and appropriate in light of the
Executive Committee/Board. The MC does have an and estimates where necessary. EC is the proxy entity of the Board of Directors to carry-out vital Company's performance.
approval authority for credit/investment proposals, which decision making on behalf of the Board. The committee sits The committee furthers these goals by: linking executive
is Tk. 3.0 million for any new client and Tk. 5.0 million for regularly (typically every month) to make decisions about all compensation to the long-term profitability of the Company and
existing client. However all proposals are sent to the EC for The Board of Directors confirms that the applicable credit & investments related issues and other operational matters. long-term increases in share value relative to competitors and
post-facto approval. Bangladesh Financial Reporting Standards have been The purview of its works includes: other comparably situated Companies. It also oversees all
adhered to, subject to any material departure being l To evaluate all credit proposals and make decisions promotions and annual increments of the employees considering
disclosed and explained in the notes to the accounts. The regarding final approval of any proposal. their performances and other related criteria.
Asset-Liability Committee Board also confirms the Company keeps accounting l To evaluate any operations-related proposals put forth by
This committee is responsible for managing balance sheet records, which disclose with reasonable accuracy, the the Management for decision. COMMITTEES OF THE MANAGEMENT
risks viz. risks inherent in our assets and liabilities. It financial position of the Company and which enable them l To evaluate and make pre-approval of any policy-related
addresses mainly liquidity and interest rate risks, which to ensure that the financial statements comply with the issue for the Company for final evaluation of the Board. Management Committee
impact our balance sheet positions and ultimately our requirements of the Companies Act 1994, Securities and The Management Committee comprises of members of senior
assets-quality and profitability. Exchange Rules 1987 and Financial Institutions Act 1993 Audit Committee management from both operations and finance departments.
and all amendments thereto. The Audit Committee is formed with board-members having The committee primarily scrutinizes initial credit proposals before
Anti Money-Laundering Committee relevant experience in finance and accounting, to oversee the placing them to the EC of the Board for final approval/decision. It
audit of Company's financial reports as well as adequacy of also monitors the fund position of the company to ensure
The committee is formed to monitor, coordinate and Shareholders' Role company's Internal Control. matching between assets and liabilities and make funding
implement the directives and guidelines relating to ILFSL strongly believes that all stakeholders should have The committee is empowered, among other things, to examine available for investments.
preventing the incidence of money-laundering with access to complete information on its activities, any matter relating to the financial affairs of the Company and to
different client accounts in our company. The Committee performance and product initiatives. The shareholders play review all audit and inspection programs, internal control Asset-Liability Committee
acts as a Central Compliance Unit (CCU) for prevention of an important role in assisting the Board to implement systems and procedures, accounting policies and adherence to ALCO is responsible to address the Balance-Sheet related risks,
money laundering of our company. proper Corporate Governance. compliance requirements. This would ensure that a sound viz. Interest Rate Risk and Liquidity Risk. It evaluates the critical
financial reporting system is in place, which is well managed, components of assets and liabilities which affect the cash-flow
The Company welcomes the active participation of the providing accurate, appropriate and timely information to the
Board and Committee Charters shareholders at Annual General Meeting and solicits their position as well as the profitability out of the business activities
Board of Directors and stakeholders. of the Company. Main responsibilities include:
Given in page 37 of this Annual Report. views at all times, promoting healthy dialogue. Whenever The duties of the Committee are: l To review the balance sheet components and ascertain the
possible, the Company has also implemented l To consider the appointment of the external auditor, the audit position of the Balance Sheet in terms of liquidity and interest
Financial Report and Transparency shareholders' suggestions. Through the half yearly and fee, and any questions of their resignations or dismissal; rates.
Financial statements have been prepared with Bangladesh annual reports of financial statements, meetings and other l To discuss with the external auditor before the audit l To take appropriate corrective measures to mitigate any
Financial Reporting Standards as laid down by the Institute forms of communications, the Board and the Management commences, the nature and scope of the audit, and ensure co- risk/drawback inherent in the balance sheet.
of Chartered Accountants of Bangladesh. continuously interacts with the valued shareholders of the ordinations where more than one audit firm is involved; l To provide policy guide-lines to take courses of actions about
Company. l To review the half-yearly and annual financial statements BS management.
before submission to the Board, focusing particularly on:
The ALCO sits every quarter-end to review the balance sheet
(i) Any changes in accounting policies and practices; positions, market conditions and recommend corrective actions.
(ii) Major judgmental areas;
(iii) Significant adjustments resulting from the audit; Anti Money-Laundering Committee
(iv) The going concern assumptions; The committee is formed to monitor, coordinate and implement
(v) Compliance with accounting standards; and the directives and guidelines relating to preventing the incidence
(vi) Compliance with stock exchange and legal requirements. of money-laundering with different client accounts in our
l To discuss problems and reservations arising from the interim company. The Committee acts as a Central Compliance Unit (CCU)
and final auditors and any matter the auditor may wish to for prevention of money laundering of our company. Functions of
discuss (in the absence of management where necessary). the committee include:
l To review the external auditors' management letter and Develop a Policy for sake of Anti Money Laundering for the
l
management's response. Company.
l To review the Company's statement on internal control To develop an in-house system for ensuring complying with
l
systems prior to endorsement by the Board. Know-Your-Client (KYC) requirement.
l To review the internal audit programme. Ensure co-ordination To develop a system to screen-out any Fictitious Transactions
l
between the internal and external auditors and ensure that in clients' accounts.
the internal audit function is adequately resourced and has To ensure reporting of Suspicious Transaction Report (STR) (if
l
appropriate standing within the Company. any) to the Anti Money-Laundering department of
l To consider the major findings of internal investigations and Bangladesh Bank on regular basis.
management's response. To keep the employees acquainted and updated regarding
l
l To consider other topics as defined by the Board. different forms of money laundering and modes of
l The meet with the Head of Internal Audit and Compliance prevention thereof.
Members of Management Committee

36
STATEMENT OF DIRECTORS' RESPONSIBILITY REPORT TO THE ACTIVITIES OF THE AUDIT COMMITTEE OF THE BOARD
Supervisory Formation of Audit Committee management. All employees are obliged to co-operate
The Board of Directors assures that it has performed its proper role of reflecting true state of affairs of the company's As reported last year, the ILFSL Audit Committee was with any information requirement by the Committee.
performance. The Board has formed various committees to supervise and make policy-related decisions of different formed by the Board of Directors in February 2008 As per
affairs of the company, namely: Notification No.SEC/CMRRCD/2006-158/Admin/02-08 The Committee is further authorized by the Board to
dated February 20, 2006 of the Securities and Exchange obtain outside legal or other independent professional
EXECUTIVE COMMITTEE Commission. advice and secure the attendance of outsiders with
relevant experience and expertise if considers necessary.
To control all the investments related issues, to evaluate and make approval for all credit proposals, to evaluate and make Composition
decisions on all operational issues where new approval is required to be taken. Activities
The Audit Committee continues to consist of 3 members of
the Board of Directors. It is chaired by an Independent During the year 2009, the Audit Committee held 3 (three)
AUDIT COMMITTEE meetings.
Director.
To evaluate the Financial Reports prepared by the Management, evaluate their objectivity and accuracy; evaluate the
Internal Control procedure of the company; assess the reports as prepared by the Internal Audit and Compliance During the year, the Committee consisted of Mr. Faiz In brief, the following issues were discussed in the three
department of the Company. Ahmed, FCA, Director, Mr. Sajidur Rahman Khan, Director meetings:
as the two Members and the undersigned as the Preparation of the Terms of References (TOR) of the
l
REMUNERATION COMMITTEE Chairman. Audit Committee as laid down in the SEC's Circular
To review all annual evaluation of the employees, to consider annual salary review, increment and promotion proposals No. SEC/CMRRCD/2006-158/Admin/02-08 dated
of the employees as proposed by the Management; to review the appropriateness of the incentive system of the Scope of Work February 20, 2006.
Company. As delegated by the Board, the Audit Committee seeks to Preparation of the organogram of the Internal Audit
l
satisfy itself, by means of suitable steps and appropriate Department and also finalization of the
information, that proper and satisfactory internal control appointment of the Head of the Department.
Internal Control Accounting Standards, as adopted in Bangladesh by the systems are in place. Preparation and approval of the Internal Audit &
l
Institute of Chartered Accountants of Bangladesh, have Specific areas of work are to ensure that there is due
The Board ensures that a system of internal control within Inspection Guidelines which should be followed by
been adhered to, subject to any material departure being process for:
the organization is in place- which is effective and the Internal Audit and Compliance Department.
disclosed and explained in the notes to the accounts. The
adequate. To ensure smooth and systematic operational a) efficiency and effectiveness of operational controls; Review of the half yearly accounts for the period up
l
Board also confirms that the Company keeps accounting
procedure in running the business of the company, a b) safeguarding of assets; to June 2009 and in doing so, review and evaluation
records, which disclose with reasonable accuracy, the
comprehensive Internal Control has been established. It c) reliability of financial and other management of the sources of income for the company.
financial position of the Company and which enables it
comprise of job allocations, proper hierarchy of authority, information; Examination of the audited accounts for the year
(company) to ensure that the financial statements comply l
proper approval authority and standard operating
with the requirements of the Companies Act 1994, d) compliance with relevant national laws and 2008 and submission of its recommendations to the
procedure. It also has a functional Internal Control and
Securities and Exchange Commission (Public Issue) Rules regulations. Board of Directors.
Compliance department manned with people with
2006, Financial Institution Act 1993 and Listing Regulations Recommendation for taking up merchant banking
l
requisite qualifications. It makes internal audits of different
of Dhaka and Chittagong Stock Exchanges and Responsibilities operations and obtaining license of the Chittagong
functional business areas to ensure compliance of all
amendments thereto. a) Periodic review of the effectiveness of the Stock Exchange as potential sources of business
statutory and standard rules and procedures. The Audit
Committee of the Board reviews the system of internal accounting and internal control systems and checks growth.
control and its different aspects on an ongoing basis, to The Auditor of the Company, Zoha Zaman Kabir Rashid of the company and its subsidiaries. Reviewed and approved 4 (four) core risk guidelines
l
ensure its efficacy. and Co., Chartered Accountants have carried out the as required by the Bangladesh Bank and
b) Verification of the reliability of management
annual audits to review the system of financial control, as
information system in the organization including recommended that the guidelines be vetted by an
they consider appropriate and necessary, for expressing
Financial Reporting their opinion on the financial statements. They have also management reporting to the Board. independent financial consultant.
The Board accepts the responsibility for the integrity and examined the financial statements made available by the c) Review of the reports of the Internal Audit and Examination of the SEC's Directive no.
l
objectivity of the financial Management together External Audit and review the actions taken. SEC/CMRRCD/2006-158/Admin/02-06 dated the 9th
reports. It assures that the with all the financial d) Consultation with the external auditors of the January 2006 wherein the roles of Company
estimates and judgements records, related data, company on the adequacy of the accounting and Secretary (CS), Chief Financial Officer (CFO) and
relating to the financial minutes of the internal controls of the company. Head of Internal Audit (HIA) have been laid down
statements were made on shareholders and Board e) Review and ensuring of due compliance with the and submission of the recommendation that roles
a prudent and reasonable meetings, relevant policies relevant laws and regulations. of the Company Secretary and Chief Financial
basis, so that they reflect in and finally expressed their f) Review of the strategies, methodologies, plans, Officer be segregated and separate job descriptions
a true and fair manner, the opinions. In doing so, they be issued.
manning and organization for internal auditing and
form and substance of the have been independent
throughout, and the the extent of co-ordination with the external
transactions and
reasonably present the Management, the Board or auditors.
Company's true financial the Audit Committee did g) Any other responsibilities as shall be determined by
state of affairs. not attempt to show any the Board from time to time. C.K. Hyder
influence or affect their Chairman
The Board confirms that opinions whatsoever. Authority Audit Committee
the International Financial The Audit committee is authorized by the Board to review
Reporting Standards (IFRS) any activity within the business. It is authorized to seek any Dated: Dhaka;
and International information it requires from any Director and member of April 29, 2010

38
MESSAGE FROM THE CHAIRMAN

Dear Shareholders, Side by side, we strengthened our traditional income


generating source i.e. Lease Financing and Term Financing.
I have great pleasure in welcoming you to the 14th Annual
In the coming months, our Company will continue to
General Meeting (AGM) of International Leasing and
endeavour for obtaining regulatory approval to offer
Financial Services Limited and in submitting the
different other capital market related services. It is my firm
company's Annual Report for the year 2009.
hope that these will ensure maximum values for the
As all of you are aware, the year 2009 witnessed shareholders.
unprecedented challenges posed by the global financial
I take this opportunity in thanking all esteemed
crisis the international, national and enterprise levels. At
shareholders for their understanding and commitment to
the national level, the credit goes to the government and
the Company. I also thank the Management and all
the Central Bank for successfully tackling the turmoil. At
employees of the Company for their dedicated services,
the enterprise level, despite the slowdown in business,
and of course, the members of the Board of Directors for
particularly international trade, many companies faced the
their continued leadership.
crisis with rare dynamism. Your Company is one of them
LEASE FINANCE and registered exemplary business results. Its portfolio
grew by 2.2 times during the past 5 years along-with
growth of assets by 2.3 times. Net Income also increased
We provide Lease Finance for procurement of by 60.3 million, representing 42 percent growth. More
capital machineries and equipment. importantly, new business diversifications were Mahbub Jamil
We have provided the financing for procuring undertaken during the year which are showing excellent Chairman
machineries for composite knit textiles. prospects. Primary Dealerhsip and Stock Brokerage
Dated: Dhaka;
Business are becoming more and more income generating.
April 29, 2010

40
MANAGING DIRECTOR'S ROUND-UP

It is indeed heartening to note that despite all the pledge-bound to maintain highest ethical standards,
challenges and obstacles faced the global financial crisis, professionalism and transparency. We believe our Report
we have been able to withstand the turmoil well and will aptly reflect our openness and transparency regarding
continued our growth momentum. International Leasing reporting our company's business affairs.
has achieved tremendous growth and established itself
solidly in the industry. We have provided detailed account We would like to thank our valued shareholders, our
of the business and operational aspects and our outlook in enlightened Board of Directors and above-all our valued
the “Management Discussion and Analysis” section of this clients for putting trust on us. We reiterate our
Report. commitment to serve with flexibility and care and
continue our business journey towards bigger
Financial Markets is fraught with challenges and obstacles destinations.
on continuous basis. We as a financial institution have
always been vigilant in addressing the challenges and
taken our strategic actions accordingly. We have always
BROKERAGE HOUSE been committed to our vision and mission while
conducting our Business. Our image in the industry is also
important to us. At the cornerstone of our business, we try
INTERNATIONAL LEASING SECURITIES LTD. to serve our customers with maximum amount of care and Mustafizur Rahman
Our Stock Brokerage House provides stock customization. As a policy we are not unnecessarily Managing Director
brokerage services for buying-selling shares, aggressive. We intend to generate a solid momentum by
maintaining all the business parameters. We think all these
opening BO accounts, providing margin loans etc. guiding principles have reaped positive results for us.
Dated: Dhaka;
Interior of brokerage house during a trading At International Leasing, we are committed to serve our
April 29, 2010
session. clients well at the same time maintaining sustainable
values for our shareholders. The Management as a team is

42
Export than food inflation which rose to 7.04% in Dec-09, as
DIRECTORS' REPORT Total export earning during the year 2009 amounted to US compared to 4.76% in Dec-08.
$15071 million, compared to US $15,364 million in 2008,
indicating a decline of 1.9 per cent. The considerable
deceleration of exports as compared to that of the
previous year was mainly due to the global economic
recession. The knitwear sector continued to account for
the major share to export performance, followed by woven
garments, 36.2 per cent, frozen food, 2.9 per cent, jute
goods, 2.4 per cent, leather 1.3 per cent, home textiles, 1.9
per cent, and raw jute, 1.3 per cent.

Remittance
Remittance sent by the Bangladeshis working abroad
crossed the $10 billion mark for the first time in 2009. It
grew by 19.51% by reaching to $10.72 billion in 2009, up
from $8.97 billion in 2008. According to the overseas
employment data, the number of migrant workers leaving
the country declined by 46% to 475,278 persons in 2009,
from 875,055 persons in 2008. Despite the slow-down in
overseas jobs, expatriate remittance flow maintained a
continuous robust trend. The firm measures taken by the
central bank to encourage wage earners to send money Money Market
Dear Shareholders, borrowings from the banks and not resorting to any home through formal channels yielded good results. The money market remained unusually cool throughout
The Board of Directors have the pleasure in submitting the panicky policy decisions. the year. Flooded with liquidity, there was less fund-
Annual Report for International Leasing and Financial demand for credit. Weighted average Call Rate was 5.05%
Services Limited for the year 2009 at the Company's 14th Remittances under wage earners' scheme increased in Dec-09. Due to lower return from call market, banks
Annual General Meeting (AGM). significantly which contributed to steady increase of the were more active to invest the short-term funds in treasury
foreign reserve. The agriculture sector recorded a securities and inter-bank Repo market.
The year 2009 was extremely challenging, particularly due significant growth rate due to improved food production
to the global financial crisis. The challenges posed by the which helped reduction of food imports. The industrial Inter-bank Repo rate was 4.50% during the last quarter of
crisis at national level have been successfully tackled, for sector also performed well, despite setback in export 2009. Reverse-Repo rate offered by Bangladesh Bank to
which, the credit goes to the Government and the Central demands. Widespread interest in investment was visible. banks, to absorb excess liquid fund out of the market, was
Bank. At the enterprise level, many companies have tackled But for gas shortage, investment scenario could have been 2.50% during the last quarter of 2009.
the challenges with dynamism. International Leasing, as much better.
will be seen from the financial performances for the year, is
one of such successful companies. The business volume GDP Growth
was Tk. 3.42 billion during the year, showing a growth of 10 The Gross Domestic Product (GDP) achieved a growth of
percent. The portfolio size was Tk. 12.47 billion, registering 5.9 per cent in FY2009, which was slightly lower than 6.1
a growth of 24 percent and profitability improved by 81 per cent in 2008. The main contributor to GDP growth on
percent to Tk. 205 million. Important business the expenditure side was private consumption which
diversifications were undertaken which have started signified increased domestic demand. The Agriculture
giving good returns for the shareholders. The Branch Office sector showed strong growth. The strong growth
in Chittagong, the Brokerage Services of the Subsidiary performance in the industrial sector in the beginning of
Company, International Leasing Securities Limited, helped the FY gradually decelerated during the second half. Credit
achieve commendable business growth. Real Estate Similarly, the growth in the services sector decelerated as
Finance also showed encouraging performance. Total domestic credit registered a rise of 13.71% in
compared to that of the previous year. Year-by-year GDP December 2009, over the same period of previous year.
growth is shown below: Growth in domestic credit was impressive 19.34% in
Domestic Economy December 2008. A major feature is the rise of private
During the year 2009, the Bangladesh economy witnessed sector credit flow. Growth of private sector credit was
major challenges arising from the global meltdown. These 11.73% in Dec-09. This indicates that the economic
challenges have been successfully tackled, for which, the activity is gearing up at the last part of the year, since
credit goes to the Government and the Central Bank. private credit growth was only 4.7% in June 2009.
DIBOR
Introduction of Dhaka Inter-bank Offered Rate (DIBOR), a
The Central Bank not only continued to follow reform Inflation benchmark indicative interest-rate of inter-bank
programme, but also handled monetary issues extremely The reign of inflation started off in later part of 2009, borrowing and lending, introduced by the Central Bank,
well, ensuring credit flows to different sectors, lending although it was quite tame during the first half of the can be seen as a milestone to make the money market
support to inter-bank, utilizing the financial reserve to year. Inflation rose to 8.51% on point-to-point basis in more systematic (formally introduced from January 1,
ensure adequate supply of US Dollar liquidity to the local December-09, up from 2.25% in June-09 and 4.60% in 2010) and help smooth the operations of the market.
markets, monitoring exposure of banks and financial Sep-09. Rise in food prices in international market, higher
institutions for foreign assets and collateral debt liquidity position and foreign remittance all may be the
obligations and importantly, maintaining exchange rate possible contributors to the higher inflation. National Capital Market
stability. Credit is also due to the Government for giving food inflation stood at 9.50% in Dec-09, against 6.83% in 2009 was a remarkable year for the capital market as the
high priority to limiting budgetary deficits, restraining Dec-08. On the other hand, non-food inflation was lower stock indices witnessed an astronomic surge. All market

44
indicators were upbeat and broke historical records. Bullish programs. In the verdict of long awaited mutual fund court Decline of value of US Dollar DISBURSEMENTS (M. Taka) 2009 2008
trends lured investors to the bourses in flocks and case, the High Court declared illegal the amendment to Chart of the Trade Weighted US dollar against other major Lease 735.74 995.09
consequently liquidity flow increased significantly. The DSE the Mutual Fund Rules brought about on July 22, 2008 currencies from 1973-2009.
General Index (DGEN) reached to historic high on the last debarring close-end mutual funds from declaring stock- Term Loan 1979.97 1343.54
day of the year at 4535.53 points. The daily market dividend or granting right entitlements. But subsequent Real Estate Finance 196.62 48.53
turnover touched highest Tk. 12.45b on October 20, 2009 news of appeal against the verdict and SEC decision to
Work Order 4.00 74.98
the lowest of which was Tk. 2.12b on May 12, 2009, redeem non-tenured closed-end funds by end of 2011
signifying high volatility during the year. injected some jitters in the sector. The decision of not 2916.33 2462.14
allowing direct listing by private sector companies and
mandatory off-loading of 40% of capital to qualify for IPO
were other rolling-back measures that cast a gloom on the Real Estate Finance
prospective supply-side developments that is feared to Real Estate Finance is continuously gaining momentum
impede growth in the coming years. since its launching in 2008. During the year, the Company
made a gross disbursement of Tk. 196 million. Out of that
amount, Tk. 19.58 Million was disbursed against
Global Economy Refinancing Scheme provided by Bangladesh Bank to 17
Global economy contracted by -0.8 % in 2009. This is nos. of clients. It is mentionable that, IFLSL is one of the
mainly attributed to the contraction by severely recession- recipients of Refinancing Scheme of Bangladesh Bank
hit advanced economies of US, UK, EU and Japan. which is provided to limited-income earning people at a
The Dollar Index, which tracks the dollar against a basket soft rate (9% p.a).
of currencies, touched 78.823 in August last year, falling by
12 percent from last year's high in March, as U.S. authorities Capital Market operations
pledged $12.8 trillion to combat the recession. We During the year, the Company made a net investment of
witnessed a loss of status for the U.S. dollar as a store of Tk.100 million in the share market. It was particularly a
value even in the absence of a single viable alternative. good year for capital market investments, as the company
The year was also remarkable for various other reasons. Currently US Budget Deficit is 13% of its GDP, which is made a net earning of TK. 45.96 million out of investment
The global economic daze prolonged its appendage till more than $1.5 trillion in figures. Also the ever in shares. Most of the income came from capital gains from
the end of the year. Stress and fear of recession and accumulating US debt now stands at more than 12 trillion sales of assets (Tk. 44.26 million); while remaining Tk. 1.69
national political uncertainties pushed the market down dollar. In 2008, US public debt was 41% of GDP, which is million coming from dividend income. At the end of year,
by 24.91%, from June 01, 2008 to April 09, 2009. However, projected to increase to 60 percent of GDP at the end of outstanding share portfolio was Tk. 80.96 million.
from Q2 of the current financial-year, it started recovering 2010.
in tandem with global acceleration. The FY2009-10 budget As a hedge against the loss of value of US Dollar, we see Product Matrix
was another boost for both demand and supply-side, as it that Gold is gaining prominence against the fall of value.
proposed 2.5% tax reduction of the listed financial Total business volume for the year stands at Tk. 3421
The price of gold increased more than 50% during the last million. Product-wise maximum contribution comes from
institutions and provision of legalizing undisclosed income The negative growth spiral was slightly offset by the 1 year, reaching over $1200 during the close of year 2009.
by investing in capital market. Term Financing, comprising of 57% of total business (Tk.
continuous growth achieved by the Asian Economies like 1980 million). Product-wise matrix is shown below:
China, India and Middle East. Among the BRIC countries Domestic Economy in relation with the World Economy
the first two i.e. Brazil and Russia were in negative growth
territory. The domestic economy has shown some resilience during
the Global Recessionary period from the last quarter of
2008 till the end of 2009. Although global growth rate has
been negative in 2009, still Bangladesh economy managed
to achieve a 5.9% growth. It indicates that the domestic
economy has got its own momentum. The two main
engines of our economy- export earnings and remittance
have maintained the growth during the year. Since the bad
times of recessionary period has mostly passed out, we can
expect the stability of our economic performance in
coming days.

OPERATIONAL PERFORMANCE OF THE COMPANY IN


2009

The major event was the listing of GrameenPhone (GP) on Leasing and Term Loan
November 16, 2009, the largest company in the country The traditional debt products viz. lease finance and term
that helped mitigate chronic supply-side deficiency to The advanced economies that were hit by recessions were finance continue to be major income generating Sectoral Exposure
some extent. GP's debut validated claims that the local in life-support by means of government emergency fiscal investments, although growth prospects have shrunk to
market is capable of absorbing mega issues. aid. We have also witnessed the crisis in Dollar, as US has some extent. Total lease disbursement was Tk.736 million, Major three sectors of investments are Engineering,
been sunk into severe indebtedness ($12 trillion plus). The while contract amount was Tk.626 million. The company Service and Textile sectors, comprising 22%, 13% and 12%
toxic financial assets created by means of exotic financial made term finance disbursement and contract of Tk.1980 of exposure. Major sectoral exposure is shown below:
For poor performing companies, Over the Counter (OTC) instruments like Securitization and Derivatives, finally blew
market was launched in September. In order to tame the million and Tk.1837 million respectively. Total
out like bubbles. Only the countries that concentrated in disbursement in debt products stands at Tk. 2916 million,
perceived overheated market, Securities & Exchange real economic output like China, India and Developing Asia
Commission (SEC) took some steps including curbing which is 18% higher than that of 2008 (Tk. 2462 million).
were able to withstand the economic recession. Efforts continued towards sustaining quality of the
margin loans, suspension of trading, warning brokerage
firms and merchant banks and launching awareness company's assets and keeping its classification ratio to a
reasonable level.

46
Compensation and Rewards information, proper IT infrastructure is imperative. In the
TREASURY OPERATIONS It is of utmost importance to provide proper incentives for context of these facts, your company has taken proper
Following a turbulent year in 2008, treasury operations each employee to ensure his uninterrupted motivation measures to ensure seamless logistics and operations. The
were relatively low in 2009 as far as money market is towards organizational growth. All types of traditional key areas where appropriate actions were taken are as
concerned. The market experienced a drastic fall in interest incentive systems are in place for all levels of employees. It follows:
rates in May 2009, following a Bangladesh Bank directive to also takes care to fulfill basic employee needs like home
slash interest rate on lending for banks. This rate cut loan or car loans from mid-levels. ILFSL has developed its own Operations Software named
measure also affected the financial institutions. Interest “Ice Lease Multiplier” by combining and integrating all
rate ceiling for lending was fixed at 13% for some major Work Place areas of operations. It is now being used in different areas
selective sectors for the banks. The reduction in lending The Company takes great care to make sure our work of operations and integration process within these
rates had a corresponding effect in borrowing rate also. environment is ergonomically designed and proper work operational areas is underway. The office places (both head
Accordingly, rates on bank deposits were also slashed by atmosphere is created. It is important to create an office and branch office) are totally integrated by Local
the banks and FIs. impression of our company brand in our work places. Area Network (LAN), Supported by Network Server and
Proper environment is also important in order to provide Mail Server. Each workstation is fully connected with
The company did not face any difficulties in obtaining exclusive services to our clients. network and internet to ensure internal and external
SUBSIDIARY OPERATIONS communications. The company's website contains
funds from the money market in the form of call loan. Also
availability of credit from commercial banks was smooth as Non-discriminatary Policy and Equal Opportunity different organizational and operational information,
Stock Brokerage Operations banks were flooded with excess liquidity. Our company has which is updated regularly. A complete systems data and
The company operates Stock Brokerage operations In all our recruitments and annual assessments, the information security process is implemented to ensure
been focusing intensively for deposit mobilization, in order company always strives to be fair and select the best
through its fully-owned subsidiary company, International to build our in-house fund procurement source. Its own security and disaster recovery of various operational data.
Leasing Securities Ltd. (ILSL). Within just one and half years candidates and provide for anybody which somebody
deposit mobilization team has stared to function in full deserves. Fairness towards employees is also important to
of its operations, the company has significantly established swing from July of the year. Presently the Team consists of RISK MANAGEMENT
itself as a leading Stock Brokerage House, having achieved create an ethical organizational culture.
3 members, with 1 Team Leader. The company plans to Being an active player in the financial market, the
#16 position in DSE in terms of turnover in December-09. expand deposit mobilization team as fund requirement Company is exposed to different business and market risks.
Its operating performance is outlined below: grows continually. During the year, we procured a total Succession Plan
Crucial risks include interest rate risk, credit risk, liquidity
fund of Tk. 6.0 billion, out of which Term Deposit was Tk. 2.7 In today's dynamic and competitive work environment, an risk and other business risks. A sound risk management
In Million Taka billion. Following graph shows different sources of Term effective succession plan is required for every tier of system is crucial for ensuring sustainable operations of
Particulars 2008 2009 Deposits. Management. It ensures the continuity of operations and financial institutions. It entails continuous market
unhindered growth of the organization. Keeping this in monitoring, addressing various risks involved in course of
Turnover in DSE 667,964.82 1,475,299.37 view, the company is careful about developing second line different operations and developing appropriate risk
Total Turnover of ILSL 2,074.75 40,047.73 of leadership in every possible position. We also take care mitigation system.
Market share in DSE 0.31% 2.71% about
Average Turnover in 2009 - 164.13 Your Company has set up different committees to deal
Giving an employee cross-functional responsibilities
l
with different aspects of risks. The Management
Market position as per DSE - 16th to train him/her on different areas of operations. Committee (MC) deals with all credit risks while evaluating
Inter-departmental transfers especially in senior
l all credit proposals and suggest proper measures. The
ILSL has introduced some value added services like 24 levels to swap one's efficiency in different Asset Liability Committee (ALCO) deals with all interest
hour phone banking (first time in Bangladesh), electronic strategically import areas. rate and liquidity risks inherent in our funding and
statements, SMS service, etc. Margin loans are provided to investment activities.
the clients as per margin rules set forth by Securities and While making new recruitments or devising
l
Exchange Commission (SEC). Net profit of the company departmental objectives, taking care about
was Tk. 108.13 million. balancing and re-aligning job descriptions to ensure An independent Internal Audit department deals with all
that everybody makes equally important operational risk related issues while scrutinizing all pre-
contributions and reduce dependence particularly disbursement formalities of sanctioned credits.
Margin Loans HUMAN CAPITAL
The company has provided margin loan to its clients as per on anybody.
A detailed description of Risk related issues are described
rules and ratio stipulated by SEC. Last year the company Making strategic decisions for future placements
l in a separate section of this Annual Report.
Ethical standards
has provided margin loan of Tk. 1.00 billion to its clients. from among existing work-force to crucial positions.
The required fund for extending margin loans was Your Company is committed to maintain highest ethical
provided by the parent company. standards and standard code of doing Business. It is
following an ethical corporate culture where all key GEOGRAPHICAL SEGMENTS FUTURE PROSPECTS
personnel responsible in respective areas of operations The company is due to open a new branch in Sylhet by We are quite confident about resilience of our economy
New Subsidiary Company maintain their due ethical standards. middle of 2010 both for Leasing and Securities companies and business leadership of our entrepreneurs. This has
The company acquired 100% ownership of Hong-Kong in an integrated way. been amply proved in our capacity to withstand the global
Bangladesh Securities Ltd. (HBSL), which is a member of
Training Our Branch office in Chittagong is already performing in financial crisis in last year. We believe our economic growth
Chittagong Stock Exchange Ltd., on 25th October 2009.
The company attaches great importance in equipping its full-swing which offers both our core services as well as will continue to exhibit resilience and steady growth.
HBSL is a fully-owned subsidiary of International Leasing
Securities Ltd. Statutorily, HBSL is thus a sub-subsidiary manpower with technical and leadership skills. It trains up Brokerage service. A branch is due to be opened in the
company of International Leasing. HBSL is under process of its personnel in all tiers- entry level, mid level as well as middle of 2010 in Khatunganj, offering broad range of During last 13 years your Company has proved its
obtaining license to start stock brokerage in CSE by means senior level. The regularly available regulatory, financial services, including Stock Brokerage. competency and leadership solidly. We are absolutely
of this memerbship. Once it obtains the license, it will be and managerial workshops, seminars and training confident about maintaining our leadership position in the
able to start stock brokerage operations in CSE. programs-both at home and abroad, are utilized in training INFORMATION TECHNOLOGY Industry in future years also.
up our men. During the year, our staff received 15 nos. For a Financial Institution, which requires preserving and
training programs. analyzing voluminous amount of data and other

48
We have taken up elaborate plan to intensify our stock CORPORATE AND FINANCIAL REPORTING FRAMEWORK Operating Revenue Tk. 234,249,689 Kabir Rashid & Co., Chartered Accountants as the auditors of
brokerage operations. As we have mentioned, we have The directors, in compliance with SEC notification no. Operating Expenses Tk. 53,169,567 the company for the year 2010 at a fee of Tk. 120,000 plus
already obtained membership of Chittagong Stock SEC/CMRRCD/2006-158/Admin/02-08 dated February 20, VAT.
Exchange. Our subsidiary company, ILSL, will start offering 2006 affirm that: Operational Profit before provisions Tk. 181,080,122
brokerage service in CSE also, tentatively from middle of Provision for doubtful accounts Tk. 49,150,756 STATUS OF COMPLIANCE
2010. For Chittagong region, we will start stock brokerage i) The financial statements, prepared by the Profit before taxes Tk. 131,929,366 Status of compliance with the conditions imposed by
Branch office in Khatunganj from middle of the year. management of ILFSL present fairly its state of Securities and Exchange Commission vide its Notification
Tax Expense Tk. 34,972,659
affairs, its results of operations, cash-flow and no. SEC/CMRRCD/2006-158/Admin/02-08 dated February
We have already taken an office space in Sylhet in changes in equity. Profit After Tax Tk. 96,956,707 20, 2006 is enclosed in Annexure-3 of this Report.
Chowhatta area, from where we will start offering stock Transferred to Statutory Reserve (Tk. 19,500,000)
brokerage service, to cater to the need of Sylhet division. ii) Proper books of accounts of the Company have
been maintained. Net Surplus in Profit and Loss Account Tk. 77,456,707 ACKNOWLEDGMENT
We also have plans to offer our services including Stock The Directors take the opportunity in thanking the valued
Brokerage through new branches in Narayanganj, Old Retained Earning Brought forward Tk. 197,538,460
iii) Appropriate accounting policies have been customers, bankers, Bangladesh Bank, government agencies
Dhaka and North Bengal. applied consistently, except for the changes Profit Available for Distribution Tk. 274,995,167
and business partners for their contribution to an excellent
disclosed in the financial statements in Transfer from Share Premium Account Tk. 62,500,000 performance and finally to you, the shareholders, for your
We will surely continue with our diversification plans and preparation of financial statements, and Total Available for Distribution Tk. 337,495,167 continued support & confidence shown in the Company.The
materialize them gradually to ensure our business growth. accounting estimates are based on reasonable Directors express their appreciation of the continued hard
We are gradually becoming an umbrella and prudent judgement. Dividend
work & dedication of the employees of the Company.
organization/Business Group which contains different iv) Bangladesh Accounting Standards have been Dividend- Bonus Share (75%)* (Tk. 218,212,500)
subsidiary companies offering diverse financial services followed in preparing financial statements and Retained Earnings Carried Forward Tk. 119,282,667
underneath it. We have plans to substantially penetrate any departure therefrom has been disclosed.
into Capital Market. We are on the process of obtaining For & On behalf of Board of Directors
* Out of total Dividend of taka 218,212,500 for the year
Merchant Banking license from SEC, which will surely give v) The system of Internal Control is sound, effectively 2009, Tk. 62,500,000 was proposed to be distributed
us a great boost in our business. In future we also have monitored and executed. from share premium account.
plans to start Asset Management Company to enable us to vi) There are no significant doubts on the company's
manage pool of Funds like Mutual Funds (both open-end ability to continue as a going concern. PLAN FOR UTILIATION OF UNDISTRIBUTED PROFIT FOR
and closed-end) and other specialized Funds. We also plan THE YEAR 2009 Mahbub Jamil
to offer Real Estate Finance in a big way to tap into this Chairman
KEY OPERATIONAL AND FINANCIAL DATA The company has to keep a mandatory reserve of 20% out of
potential market. We believe in line with rapid growth of
The company's key operating and financial data along- its profit as per statutory requirement of Bangladesh Bank.
middle class and upper middle-class population, demand Dated: Dhaka;
with explanations for significant deviations for the last five This is done to enhance the capital adequacy of the
for this financial product will enhance greatly. April 29, 2010
years are presented in page-25 as per SEC requirement. Company. The remaining part of the earnings are retained
and injected into equity. This is used as an added source of
Also we have sponsored "L.R. Global Mutual Fund 1" which fund for the company to carry out its financing business and
has received SEC's approval recently. This is a syndicated SHAREHOLDING PATTERN
other investments. This also helps to maintain a balanced
mutual fund sponsored by 7 Banks/FI/Insurance Cos., PHP Float Glass Industries Ltd. has become a corporate proportion of debt and equity. We have also proposed to
which is the largest Mutual Fund of Tk. 3 billion. shareholder by buying 274,275 nos. of shares from Singer enhance our paid-up capital to reach the stipulated Tk. 500
Bangladesh Ltd. in August 2009. They have also inducted 1 million within December 31, 2010, as per Bangladesh Bank
ENVIRONMENTAL ISSUES AND CORPORATE SOCIAL (one) director in the Board of ILFSL. Mr. Md. Iqbal Hossain directive.
RESPONSIBILITY Chowdhury, Managing Director of PHP Float Glass
Industries Ltd. has become a member in the Board of
As a socially responsible company, International Leasing is CONTRIBUTION TO THE NATIONAL ECONOMY
Directors.
committed to address environmental issues while During the year the company expensed Tk. 34.97 million as
assessing credit propositions. Our concern for society and Income Tax to the government.
people will continue as we move along with our growth Pattern of shareholding of the Company at the end of 2009
spurt. is shown in annexure- 1 of this report.
DIRECTORS
BOARD MEETING AND ATTENDANCE In accordance with the Article 127 of Company's Articles of
We also extend our support to social events whenever we Association Mr. Mahbub Jamil, Mr. Sajidur Rahman Khan, Mr.
get an opportunity. We have sponsored South Asian During the year 2009, 12 (twelve) meetings of the Board of
Directors were held. Attendance by respective directors are Mizanur Rahman, Mr. A.M. Hamim Rahmatullah, Mr. Md. Iqbal
Federation of Exchanges (SAFE) conference, seminar Hossain Chowdhury retire and being eligible, offer
arranged by Dept. of Finance, DU and other events. shown in Annexure-2.
themselves for re-election. The Board recommends their re-
appointment.
CREDIT RATING PROPOSED DIVIDENDS, RESULTS AND APPROPRIATION
Your company was adjudged credit rating of A- (single A The company posted a pre-tax profit of Tk.131.93 million in AUDITORS
minus) for long term and ST3 for short term by Credit 2009, up by 7% from 2008. Financial results of the
company for the year 2009 and recommended M/S Zoha Zaman Kabir Rashid & Co., Chartered Accountants,
Rating and Information and Services Ltd. (CRISL) based on has carried out the audit of the Company for the FY2009.
financial reports of December 2008. Such rating represents appropriations are summarized below:
Being eligible, they have applied to continue our Company's
adequate safely for timely repayment of financial Audit works for the year 2010 also.
obligations.
The Directors endorse recommendation of the Audit
Committee for the re-appointment of M/S Zoha Zaman

50
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industrial/service-oriented project. Here we have Wjvi|
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hospital project. FYt †K¬vmW GÛ dv‡Ûi 2011 Gi g‡a¨ Aegyw³Ki‡bi msev` GB Lv‡Z D‡ËRbv Qwo‡q †`q|
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52
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Wjv‡i| 2008 mv‡j, BD Gm Gi RbM‡bi me©‡gvU FY wQj Gi wRwWwc Gi 41%, hv wWGmB G gv‡K©U †kqvi 0.31% 2.71% cÖ‡qvRb| n‡q‡Q †m¸‡jv njt
2010 mv‡ji †kl bvMv` 60% `vov‡Z cv‡i e‡j avibv Kiv n‡”Q| BD Gm Wjvi g~‡j¨i 2009 G Mo Uvb©Ifvi - 164.13
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(evsjv‡`‡k me©cÖ_g), B‡jKUªwbK †÷U‡g›U, GmGgGm BZ¨vw`| wmwKDwiwUR GÛ
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G·‡PÄ Kwgk‡bi wbq‡gi AvIZvq MÖvnK‡`i gvwR©b FY †`qv nq| †eªvK‡iR nvDR †_‡K AvbyµwgK cwiKíbvt
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ZeyI evsjv‡`‡ki A_©bxwZ 5.9% cÖe„w× AR©b Ki‡Z †c‡i‡Q| GUv GK_vB wb‡`©k K‡i (www.ilfsl.com) †Kv¤úvwb Ges Zvi KvR msµvš— wewfbœ Z_¨ aviY K‡i, hv wbqwgZ
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PvwjKv kw³-ißvbx Avq Ges cÖevmx‡`i cvVv‡bv A_© PjwZ eQ‡iI Zv‡`i cÖe„w× eRvq GmBwm Gi wbqg Ges AbycvZ Abyhvqx MÖvnK‡`i gvwR©b FY †`qv nq| MZ eQi cÖe„w× wbwðZ K‡i| GB me w`K j¶¨ †i‡L †Kv¤úvwbi m¤¢ve¨ me †¶‡Î wØZxq avivi Kiv Av‡Q hv `y‡h©vM Kvjxb mg‡q wewfbœ Kvh©µ‡gi Dcv‡Ëi cybi“×v‡ii wbðqZv cÖ`vb
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2009 mv‡j †Kv¤úvbxi cwiPvjbv Kvh©µg bZzb mvewmwWqvwi †Kv¤úvbxt A_© evRv‡i GKRb mwµq AskMÖnYKvix wn‡m‡e †Kv¤úvwb‡K wewfbœ SyuwKi m¤§y¶xb n‡Z
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Zv‡`i wb‡R‡`i `¶Zv Ab¨ †¶‡Î Kv‡R jvMv‡Z cv‡ib |
wPivPwiZ FYRvZ cb¨ †hgb wjR dvBb¨vÝ Ges †gqv`x FY GLbI g~j Avq Drcv`bKvix 100% gvwjKvbv AR©b K‡i, †hwU PUªMÖvg ÷K G·‡P‡Äi GKwU m`m¨| GBP.we.Gm.Gj Ges Ab¨vb¨ e¨emvwqK SzuwK| GKwU Avw_©K cÖwZôv‡bi wbiew”Qbœ Kg©Kv‡Ûi Rb¨ `¶ SzuwK
n bZzb wb‡qvM A_ev wefvMxq D‡Ïk¨ wba©vi‡b, fvimvg¨ i¶vq hZœev` nIqv Ges e¨e¯’vcbv AZ¨š— Ri“ix| wbqwgZ evRvi ch©‡e¶Y, wewfbœ Kg©Kv‡Ûi mv‡_ RwoZ bvbv
wewb‡qv‡Mi Drm wn‡m‡e Av‡Q, hw`I G¸‡jvi cÖe„w×i my‡hvM msKzwPZ n‡q G‡m‡Q| †gvU B›Uvib¨vkbvj wjwRs Gi c~Y© gvwjKvbvaxb AsM cÖwZôvb| AvBbMZfv‡e GBP.we.Gm.Gj Kv‡Ri aib cybe©›U‡bi Gi †ejvq wbwðZ Kiv †h mevB mgvbfv‡e Ae`vb ivL‡Q
wjR weZi‡Yi cwigvY wQj 735 wgwjqb UvKv, †hLv‡b wjR Pzw³i cwigvY wQj 626 B›Uvib¨vkbvj wjwRs Gi Aaxb¯’ GKwU mn-AsM cÖwZôvb| wmGmB †Z ÷K †eªvKv‡iR iKg SuywK j¶¨ ivLv Ges h_vh_ SzuwK e¨e¯’vcbv Gi Aš—f~©³|
Ges †h †Kvb GK R‡bi Dci wbf©ikxj _vK‡Z n‡”Q bv|
wgwjqb UvKv| †Kv¤úvbx †gqv`x FY weZiY K‡i me©‡gvU 1980 wgwjqb UvKv, hvi g‡a¨ Kvh©µg ïi“ Kivi jvB‡mÝ cÖvwß GLb cÖwµqvaxb Av‡Q| jvB‡mÝ cvIqvi c‡i SuywKi wewfbœ w`K e¨e¯’vcbvi Rb¨ Avcbv‡`i †Kv¤úvwb wewfbœ KwgwU MVb K‡i‡Q|
ņ i“Z¡c~Y© Ae¯’v‡b we`¨gvb Kg©xevwnbx †_‡K fwel¨‡Z wb‡qvM †`qvi Rb¨ †KŠkjx e¨e¯’vcbv KwgwU (Gg.wm) mg¯— FY cÖ¯—ve we‡k¬lY Ges h_vh_ e¨e¯’v MÖn‡bi gva¨‡g me
†gqv`x FY Pzw³ wQj 1837 wgwjqb UvKv| FYRvZ cY¨¸‡jv‡Z weZi‡Yi cwigvY wQj GBP.we.Gm.Gj wmGmB †Z ÷K †eªvKv‡iR Kvh©µg ïi“ Ki‡Z cvi‡e|
wm×vš— wb‡q ivLv| ai‡bi F‡Yi SzuwKi e¨e¯’vcbv K‡i _v‡K| G‡mU jvBqvwewjwU KwgwU (Gj‡Kv) Avgv‡`i
2916 wgwjqb UvKv, hv 2008 Gi Zzjbvq 18% (2462 wgwjqb UvKv) †ewk| m¤ú‡`i
†UªRvix Kvh©µgt Znwej Ges wewb‡qv‡Mi mv‡_ RwoZ mg¯— my‡`i nvi I Zvij¨ SzuwKi e¨e¯’vcbv K‡i|
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memgq m‡Pó wQj| 2008 G GKwU KwVb eQi cvi Kivi ci 2009 G gvwb gv‡K©‡Ui `„wó‡Kvb †_‡K †UªRvwi GKwU ¯^vaxb Af¨š—ixb AwWU wWcvU©‡g›U Aby‡gvw`Z FY weZi‡bi c~‡e© Kibxq Kvh©µ‡gi
miKvixfv‡e Ri“ix Ae¯’vi A_©‰bwZK mnvqZv w`‡q DbœZ A_©bxwZ¸‡jv †K euvwP‡q ivLv
Kvh©µg Zzjbvg~jKfv‡e Kg wQj| 2009 mv‡ji †g gv‡m gv‡K©U my‡`i nv‡ii A¯^vfvweK mgq mKj cÖKvi cwiPvjbvMZ SzuwKi †gvKv‡ejvq KvR K‡i|
n‡qwQj hviv A_©‰bwZK g›`vq fyMwQj| Avgiv AviI cÖZ¨¶ K‡iwQ Av‡gwiKv wK Zxeª
weZib 2009 2008 cZ‡bi gy‡LvgywL nq, Gi mv‡_ wQj evsjv‡`k e¨vs‡Ki e¨vsK¸‡jvi cÖwZ F‡Yi ‡¶‡Î my‡`i
fv‡e F‡Y (12 wUªwjq‡bi †ewk) Wy‡e wQj, hvi Rb¨ Wjv‡ii msKUI †`Lv †`q| wewfbœ SzuwK msµvš— e¨vcvi ¸‡jv wb‡q GB evwl©K cÖwZ‡e`‡bi Avjv`v As‡k we¯—vwiZ
wjR 735.74 995.09 nvi Kgv‡bvi wb‡`©kbv| GB my‡`i nvi Kgv‡bvi wb‡`©k A_©‰bwZK cÖwZôvb¸‡jvi Dc‡iI
wmwKDwiUvB‡Rkb Ges †Wwi‡ewUfm Gi gZ PgKcÖ` A_©‰bwZK BÝUªy‡g›U w`‡q †h welv³ Av‡jvPbv Kiv n‡q‡Q|
†gqv`x FY 1979.97 1383.54 cÖfve ‡d‡j| e¨vsK¸‡jvi wKQy evQvB Kiv Lv‡Z F‡Yi Rb¨ my‡`i nvi wmwjs wQj 13%|
wi‡qj G‡÷U 196.62 48.53 A_©‰bwZK m¤ú` ˆZix Kiv nw”Qj Zv †kl ch©š— ey`ey‡`i gZ D‡o hvq| Pxb, fviZ Ges fwel¨Z m¤¢vebvt
FY cª`vb K‡g hvIqvi cÖfve ¯^i“c FY MÖn‡bi cwigvbI K‡g hvq| GKBfv‡e e¨vsK
Dbœqbkxj Gwkqvi gZ †h me †`k cÖK…Z A_©‰bwZK Drcv`b Gi w`‡K g‡bv‡hvM w`‡qwQj
IqvK© AW©vi 8.00 74.98 wW‡cvwR‡Ui nviI e¨vsK Ges A_©‰bwZK cÖwZôvb Øviv K‡g hvq| Avgiv Avgv‡`i A_©bxwZi w¯’wZkxjZv Ges D‡`¨v³v‡`i e¨emvwqK †bZ…‡Z¡i e¨vcv‡i
ZvivB ïay A_©bxwZi GB g›`v cÖwZ‡iva Ki‡Z †c‡i‡Q|
2916.33 2462.14 Kj †jv‡bi gva¨‡g gvwb gv‡K©U †_‡K Znwej msMÖn †Kv¤úvbx †Kvb Amyweavi m¤§yLxb nq cy‡ivcywi AvZ¥wek¦vmx| MZ eQ‡ii Avš—R©vwZK A_©‰bwZK msKU cÖgvb K‡i‡Q †h Avgv‡`i
wi‡qj G‡÷U dvBb¨vÝt wb | GQvov evwYwR¨K e¨vsK¸‡jv †_‡K FY †c‡ZI †Kvb Amyweav nq wb †h‡nZz BD Gm Wjvi g~‡j¨i Ae¶qt GB msKU †gvKv‡ejv Kivi ¶gZv Av‡Q| Avgiv wek¦vm Kwi †h A_©‰bwZK cÖe„w×i GB
2008 G ïi“ nIqvi ci †_‡K wi‡qj G‡÷U dvBb¨vÝ MwZ µgk e„w× cv‡”Q| PjwZ e¨vsK¸‡jv‡Z wQj AZ¨waK Zvij¨| †Kv¤úvbxi wb‡Ri Znwe‡ji Drm ‰Zix Ki‡Z Avgiv Wjvi B‡Û·, hv †Kvb wbw`©ó gy`ªvi wecix‡Z Wjvi †K wPwýZ K‡i †mUv MZ eQ‡ii w¯’wZkxjZv me mgqB eRvq _vK‡e|
eQ‡i †Kv¤úvbx 196 wgwjqb UvKv G Lv‡Z weZiY K‡i| hvi g‡a¨ 17Rb MÖvnK‡K wW‡cvwRU †gvwejvB‡Rm‡bi w`‡K †ekx bRi w`‡”Q| Av‡jvP¨ eQ‡ii RyjvB gvm ‡_‡K AMv‡÷ G eQ‡ii gv‡P©i m‡e©v”P †_‡K 12 kZvsk K‡g 78.823 †cuŠ‡Q hvq, Kvib BD MZ 13 eQ‡i Avcbv‡`i †Kv¤úvwb ewjô fv‡e Zvi `¶Zv Ges †bZ…Z¡ cÖgvY K‡i‡Q|
19.58 wgwjqb UvKv evsjv‡`k e¨vs‡Ki widvBb¨vÝ ¯‹x‡gi AvIZvq weZiY Kiv nq| Avgv‡`i wW‡cvwRU Z¡ivwš^Z Kivi wUg cy‡iv`‡g KvR K‡i hv‡”Q| eZ©gv‡b wW‡cvwRU wU‡g Gm KZ…©c¶ A_©‰bwZK g›`vi mv‡Z hy× Ki‡Z 12.8 wUªwjqb Wjvi RvgvbZ iv‡L| Avgiv Avm‡Q eQi ¸‡jv‡ZI Avgv‡`i †bZ…Z¡c~Y© Ae¯’vb eRvq ivL‡Z Avgiv cwic~Y©
D‡j¬L¨ †h AvB. Gj. Gd. Gm. Gj evsjv‡`k e¨vsK widvBb¨vÝ ¯‹x‡gi Ab¨Zg cÖvcK Av‡Qb 3 Rb m`m¨ I GKRb `j‡bZv| Avgv‡`i cwiKíbv Av‡Q Znwe‡ji cÖ‡qvRb ch©‡e¶Y K‡iwQ GKwU m¶g weKí bv _vKv m‡Ë¡I wKfv‡e BD Gm Wjv‡ii Ae¯’vb cZb AvZ¥wek¦vmx| Avgv‡`i ÷K †eªvKv‡iR Kvh©µg‡K Av‡iv ewjô Ki‡Z Avgiv c~Y©vsM
hvi AvIZvq mxwgZ Av‡qi †jvK‡`i ¯^í nv‡i (9%) FY †`qv nq| evovi mv‡_ mv‡_ wW‡cvwRU ‡gvwejvB‡Rmb wUg evov‡bvi| N‡U‡Q| eZ©gv‡b BD Gm Gi ev‡RU NvUwZ Gi wRwWwc Gi 13%, hv msL¨vq 1.5 wUªwjqb cwiKíbv K‡iwQ| Av‡MB D‡j¬L Kiv n‡q‡Q Avgiv BwZg‡a¨ PÆMÖvg ÷K G·‡PÄ Gi
eQi †k‡l me©‡gvU wW‡cvwR‡Ui cwigvY wQj 7007.28 wgwjqb UvKv| hvi g‡a¨, 4271 Wjvi †ewk| GQvovI cyÄxf~Z n‡Z _vKv BD Gm F‡Yi cwigvY wM‡q `vuwo‡q‡Q 12 m`m¨c` jvf K‡iwQ| Avgv‡`i mvewmwWqvwi †Kv¤úvwb AvB.Gj.Gm.Gj PÆMÖvg ÷K
g~jab evRvi Kvh©µg wgwjqb (61%) UvKv G‡m‡Q e¨vsK †cm‡g›U †_‡K| wUªwjqb Wjv‡i| 2008 mv‡j, BD Gm Gi RbM‡bi me©‡gvU FY wQj Gi wRwWwc Gi G·‡P‡Ä 2010 mv‡ji gvSvgvwS †mev cÖ`vb ïi“ Ki‡e| PÆMÖvg GjvKvq ÷K †eªvKv‡iR
g~jab evRv‡i †Kv¤úvbx †kqvi gv‡K©‡U 100 wgwjqb UvKv bxU wewb‡qvM K‡i| †kqvi 41%, hv 2010 mv‡ji †kl bvMv` 60% †e‡o †h‡Z cv‡i e‡j aviYv Kiv n‡”Q| †mev cÖ`v‡bi Rb¨ G eQ‡ii ga¨eZ©x mg‡q LvZzbM‡Ä Avgv‡`i GKwU kvLv Awdm †Lvjv
wewb‡qvM †_‡K 45.96 UvKv bxU Avq Kivq G eQiwU cuywR evRv‡i wewb‡qv‡Mi w`K †_‡K n‡e|

54
Avgiv BwZg‡a¨ wm‡j‡Ui †PŠnvÆvq GKwU Awdm †¯úm wb‡qwQ| †mLvb †_‡K cwiPvjbvMZ Avq UvKv 234,249,689 Annexure-I
wm‡jUevwm‡`i ÷K †eªvKv‡iR †mev cÖ`vb Kiv n‡e| bvivqYMÄ, cyivb XvKv Ges c~e©e‡½ cwiPvjbvMZ e¨q UvKv 53,169,567
bZzb kvLv Awdm †Lvjvi gva¨‡g Avgv‡`i ÷K †eªvKv‡iR †mev cÖ`v‡bi cwiKíbv i‡q‡Q| cwiPvjbvMZ gybvdv UvKv 181,080,122
Avgv‡`i e¨emvi eûgyLxKi‡bi avivevwnKZv eRvq _vK‡e Ges Avgv‡`i e¨emvi cÖe„w× g›`FY cÖwfkb UvKv 49,150,756
eRvq ivL‡Z Avgiv ax‡i ax‡i †mB me cwiKíbv ev¯—evqb Kie| Avgiv ax‡i ax‡i GKwU Kic~e© Avq UvKv 131,929,366
e¨emv †Mvôx‡Z cwiYZ nw”Q hv Zvi wewfbœ mvewmwWqvwi †Kv¤úvwbi gva¨‡g eûgyLx †mev Ki msµvš— e¨q UvKv 34,972,659
cÖ`vb Ki‡Z _vK‡e| Avgv‡`i cwiKíbv i‡q‡Q cyuwR evRv‡i my`„p fv‡e cÖ‡ek Kivi| Ki cieZ©x gybvdv UvKv 96,956,707
Avgv‡`i cwiKíbv i‡q‡Q Gm.B.wm †_‡K gv‡P©›U e¨vswKs jvB‡mÝ cvIqv, hv Avgv‡`i AvBbMZ wiRv‡f© n¯—vš—i (UvKv 19,500,000)
e¨emv‡K AviI kw³kvjx Ki‡e| Avgv‡`i cwiKíbv Av‡Q fwel¨‡Z G‡mU g¨v‡bR‡g›U Avq e¨q wnmv‡e bxU AwZwi³ UvKv 77,456,707 SHAREHOLDING BY COMPANY'S PARENTS/SUBSIDIARY/ASSOCIATE COMPANIES/RELATED PARTIES/
†Kv¤úvbx Pvjy Kivi hv Avgv‡`i wgDPz¨qvj dvÛ (I‡cb GÛ Ges †K¬vmW GÛ Dfq) Gi Aew›UZ gybvdv-AvbxZ UvKv 197,538,460
gZ Znwej e¨e¯’vcbvq mnvqZv Ki‡e| m¤¢vebvgq evRvi †K D‡Ïk¨ K‡i eo AvKv‡i Related party relationship No. of shares %
†gvU e›Ub †hvM¨ gybvdv UvKv 274,995,167 owned
wi‡qj G‡÷U dvBb¨vÝ Pvjy Kivi cwiKíbvI Avgv‡`i i‡q‡Q| Avgiv wek¦vm Kwi ga¨weË
†kqvi wcÖwgqvg wnmve n‡Z AvbxZ UvKv 62,500,000 Singer Bangladesh Ltd. Shareholder 1,035,000.00 35.57%
Ges D”P ga¨weË RbmsL¨vi e„w×i mv‡_ GB dvBbvwÝqvj †cÖvWv‡±i Pvwn`v A‡bK e„w×
†gvU weZiY‡hvM¨ cwigvY UvKv 337,495,167 Shaw Wallace Bangladesh Ltd. Shareholder 581,900.00 20%
cv‡e|
jf¨vsk Jaroms Industries Ltd. Client/Creditor whose Director
cwi‡ek Bmy¨ Ges K‡c©v‡iU mvgvwRK `vqe×Zvt jf¨vsk-‡evbvm †kqvi (75%)* (UvKv 218,212,500) Mr. Jamal Uddin Ahmad is shareholder of ILFSL 96,196.00 3.31%
mvgvwRK `vwqZ¡kxj GKwU †Kv¤úvwb wn‡m‡e B›Uvib¨vkbvj wjwRs wewfbœ FY cÖ¯—vebv Aew›UZ gybvdv-bxZ UvKv 119,282,667
we‡ePbvi mg‡q cwi‡ekMZ Bmy¨i cÖwZ j¶¨ ivL‡Z cÖwZkÖ“Z| Avgiv `w¶Y Gwkqv G‡·Ä PATTERN OF SHAREHOLDING BY DIRECTORS, CEO, CS, CFO, HIA AND THEIR SPOUSES AND MINOR CHILDREN
†dWv‡ikb (SAFE) †mwgbvi, XvKv wek¦we`¨vjq wdb¨vÝ wefv‡Mi †mwgbvi BZ¨vw`‡Z * †gvU jf¨vsk UvKv 218,212,500-Gi g‡a¨ UvKv 62,500,000 †kqvi wcÖwgqvg
c„ô‡cvlKZv K‡iwQ| Avgv‡`i cÖe„w×i aviv Ae¨vnZ _vKvi mv‡_ mv‡_ mgvR Ges wnmve n‡Z weZi‡Yi cÖ¯—ve Kiv n‡q‡Q| Name Designation No. of shares %
RbM‡bi cÖwZ Avgv‡`i mswk¬óZv Ae¨nZ _vK‡e| 2009 mv‡j Aew›UZ gybvdvi e›Ub cwiKíbvt owned
Mr. Jamal Uddin Ahmad Individual Director 96,196.00 3.31%
‡µwWU †iwUst evsjv‡`k e¨vsK Gi AvBbMZ aviv Abyhvqx †Kv¤úvwbi †gvU Av‡qi 20% eva¨Zvg~jK
mÂq wn‡m‡e ivL‡Z nq| GKUv †Kv¤úvwbi cyuwRi m¶gZv e„wׇZ Kv‡R jv‡M| ew›UZ Mr. Mahbub Jamil Nominee Director 0.14%
Avcbv‡`i †Kv¤úvwb †µwWU †iwUs GÛ Bbdi‡gkb mvwf©‡mm wjwg‡UW (wµmj) KZ…©K Mr. Mustafizur Rahman Chief Executive Officer 0 0%
2008 mv‡ji wW‡m¤^i gv‡mi Avw_©K cÖwZ‡e`‡bi Dci wfwË K‡i `xN©‡gqv‡` A-, Ges Av‡qi evwK Ask avib Kiv nq Ges BKzBwU‡Z ‡hvM nq| GKwU †Kv¤úvwbi wewb‡qvM
Kvh©µg Pvjv‡bvi Rb¨ evowZ Znwe‡ji Drm wn‡m‡e Kv‡R jv‡M| GQvovI GwU Mr. Nehal Ahmed Company Secretary (CS) 0 0%
¯^í‡gqv‡` ST3 cÖvß n‡q‡Q| GB †iwUs Avw_©K `vq cwi‡kv‡a h_vh_ wbivcËv wb‡`©k K‡i| Mr. Md. Saiful Islam Akhand Chief Financial Officer (CFO) 0 0%
†Kv¤úvwbi fvimvg¨c~Y© FY-BKzBwU AbycvZ eRvq ivL‡Z mvnvh¨ K‡i|
K‡c©v‡iU Ges Avw_©K wi‡cvU© KvVv‡gvt Md. Shaugatul Karim Head of Internal Audit & Compliance (HIA) 0 0%
RvZxq A_©bxwZ‡Z Ae`vbt
†Kv¤úvwbi cwiPvjKe„›`, Gm B wm Gi †bvwUwd‡Kkb bs SEC/CMRRCD/2006-
2009 mv‡j †Kv¤úvwb miKvi‡K Ki wn‡m‡e 34.97 wgwjqb UvKv cÖ`vb K‡i‡Q| PATTERN OF SHAREHOLDING BY TOP 5 EXECUTIVES (OTHER THAN CEO, CFO, CS AND HIA)
158/Admin/02-08 dated February 20, 2006 m¤§wZµ‡g wbðqZv w`‡”Qb †h,
1| Avw_©K weeiYx mg~n, †h¸‡jv AvB Gj Gd Gm Gj Gi e¨e¯’vcbv ˆZix K‡i‡Qb, Gi cwiPvjKe„›`t Mr. Md. Monirul Islam Senior Vice President 0 0%
mvwe©K Ae¯’v, Kvh©µ‡gi djvdj, A_©cÖevn Ges BKzBwUi cwieZ©b mg~n h_vh_fv‡e †Kv¤úvwbi msNwewai 127 aviv †gvZv‡eK Rbve gvneye Rvwgj, Rbve mvwR`yi ingvb Lvb, Mr. Shihabul Arefin Khan Asst. Vice President 0 0%
Dc¯’vcb K‡i‡Q| Rbve wgRvbyi ingvb, Rbve G Gg nvwgg ivn&gvZDj¬vn, Rbve †gvt BKevj †nvmvBb Mr. Md. Saiful Islam Akhand Asst. Vice President 0 0%
2| †Kv¤úvwbi wnmve h_vh_ fv‡e msi¶Y Kiv n‡q‡Q| †PŠayix Aem‡i hv‡eb Ges †hvM¨ we‡ewPZ nIqvq cybtwbe©vwPZ n‡Z cvi‡eb| †evW© Zv‡`i Mr. Syed Minhaj Ahmed Asst. Vice President 0 0%
3| me mgq h_vh_ GKvDw›Us bxwZ AbymviY Kiv n‡q‡Q, Avi Gm‡ei †Kvb cwieZ©b cybtwb‡qv‡Mi Rb¨ mycvwik K‡i‡Qb|
wnmve weeiYx cÖ¯‘Z Kivi mg‡q h_v¯’v‡b e‡j †`qv n‡q‡Q| Avw_©K weeiYx mg~n
hyw³msMZ fv‡e Kiv n‡q‡Q| AwWUie„›`t
SHAREHOLDERS HOLDING 10% OR MORE VOTING RIGHTS
4| Avw_©K weeiYx cÖ¯‘‡Zi mgq evsjv‡`k GKvDw›Us ÷¨vÛvW©m AbymiY Kiv n‡q‡Q Ges †gmvm© †Rvnv Rvgvb Kwei ikx` GÛ †Kvs, PvU©vW© GKvD›U¨v›Um, 2009 A_© eQ‡ii Rb¨
†h †Kvb cwieZ©b h_v¯’v‡b cÖKvk Kiv n‡q‡Q| †Kv¤úvwbi AwWU Kvh© m¤úbœ K‡i‡Qb| †hvM¨ we‡ewPZ nIqv mv‡c‡¶, Zuviv Avgv‡`i Name Related party relationship No. of shares %
†Kv¤úvwbi 2010 mv‡ji AwWU Kvh©µg cwiPvjbv Kivi Rb¨ Av‡e`b K‡i‡Qb| owned
5| Af¨š—ixY wbqš¿Y c×wZ h_vh_, Kvh©Ki fv‡e ch©‡e¶YK…Z Ges ev¯—evwqZ|
6| avivevwnK e¨emv wn‡m‡e †Kv¤úvwbi Pjgvb _vKvi e¨vcv‡i †Kvb m‡›`n †bB| cwiPvjKe„›` AwWU KwgwUi mycvwikµ‡g †gmvm© †Rvnv Rvgvb Kwei ikx` GÛ †Kvs, PvU©vW© Singer Bangladesh Ltd. Shareholder 1,035,000.00 35.57%
GKvD›U¨v›Um‡K 2010 mv‡ji Rb¨ AwWUi wn‡m‡e 120,000 UvKv (Ges f¨vU) wd-‡Z Shaw Wallace Bangladesh Ltd. Shareholder 581,900.00 20%
cwiPvjbMZ I Avw_©K e¨vcvi msµvš— g~j Z_¨vejxt wb‡qvM Aby‡gv`b K‡i‡Qb|
Gm G wm Gi wb‡`©kbv Abyhvqx †Kv¤úvbx MZ 5 eQ‡iii cwiPvjbvMZ I Avw_©K e¨vcvi Kgc¬v‡qÝ Annexure-2
msµvš— g~j Z_¨vejx †Kvb iK‡gi cwieZ©‡bi Dchy³ e¨vL¨v mn GB cÖwZ‡e`‡bi 25 c„ôvq wmwKDwiwUR GÛ G·‡PÄ Kwgk‡bi Øviv Av‡ivwcZ †bvwUwd‡Kkb b¤^i
†`qv Av‡Q| ATTENDANCE TO BOARD OF DIRECTORS
SEC/CMRRCD/2006-158/Admin/02-08 dated February 20, 2006
Abyhvqx Kgc¬v‡qÝ †÷Uvm cwiPvjKe„‡›`i weeiYxi c‡i mshyw³-3 G †`qv Av‡Q| Name Represented By No. of Board No. of Attendance
†kqvi †nvwìs Gi aibt
Meetings Meetings Percentage
2009 mv‡ji AvM÷ gv‡m wm½vi evsjv‡`k wjwg‡UW Gi KvQ †_‡K 274,275 wU †kqvi K…ZÁZvt
attended
wK‡b †bqvi gva¨‡g wc GBP wc †d¬vU M¬vm BÛvw÷ªR wjwg‡UW †Kv¤úvwbi GKwU K‡c©v‡iU cwiPvjKe„›` mKj MÖvnK, e¨vsKvie„›`, evsjv‡`k e¨vsK, miKvix ms¯’vmg~n Ges e¨emv
†kqvi †nvìvi G cwiYZ n‡q‡Q| Gi mv‡_ Rbve †gvt BKevj †nvmvBb †PŠayix wc GBP wc Mr. Mahbub Jamil1 Singer Bangladesh Ltd. 12 12 100.00%
mn‡hvMx‡`i †Kv¤úvwbi mvwe©K Kvh©µ‡g PgrKvi Ae`vi ivLvi Rb¨ ab¨ev` Rvbv‡”Qb Ges
Mr. Gavin J. Walker Singer Bangladesh Ltd. 12 2 16.67%
†d¬vU M¬vm BÛvw÷ªR wjwg‡UW Gi e¨e¯’vcbv cwiPvjK, AvB.Gj.Gd.Gm.Gj Gi †evW© mvwe©K mn‡hvwMZv I Av¯’vi Rb¨ †kqvi‡nvìvi‡`i ab¨ev` Rvbv‡”Q| cwiPvjKe„›`
Gi GKRb wW‡i±i wn‡m‡e AwawôZ n‡q‡Qb| 2009 mv‡ji †k‡l †Kv¤úvwbi †kqvi Mr. Sajidur Rahman Khan Singer Bangladesh Ltd. 12 11 91.67%
†Kv¤úvwbi mKj Kg©x‡`i K‡Vvi cwikªg Ges wbijm cÖ‡Póvi Rb¨ K…ZÁZv Ávcb Ki‡Q|
†nvwìs Gi aib GB cÖwZ‡e`b Gi mshyw³-1 G †`Lv‡bv n‡q‡Q| Mr. A. M. Hamim Rahmatullah Singer Bangladesh Ltd. 12 8 66.67%
cwiPvjbv cwil‡`i c‡¶ Mr. Mizanur Rahman Shaw Wallace Bd. Ltd. 12 11 91.67%
‡evW© mfv Ges Dcw¯’wZt Mr. Faiz Ahmad Shaw Wallace Bd. Ltd. 12 8 66.67%
2009 mv‡j 12 (evi) wU †evW© mfv AbywôZ n‡q‡Q| †ev‡W©i cwiPvjK‡`i Dcw¯’wZ Mr. Jamal Uddin Ahmad Individual Director 12 6 50.00%
mshyw³-2 G †`Lv‡bv n‡q‡Q| Mr. C.K. Hyder Independent Director 12 10 83.33%
gvneye Rvwgj Mr. Mustafizur Rahman Ex-Officio Director 12 12 100.00%
cÖ¯—vweZ jf¨vsk, djvdj Ges e›Ubt
†Pqvig¨vb Mr. Mohammed Iqbal Hossain Chowdhury2 12 1 8.33%
2009 mv‡j †Kv¤úvwb †gvU 131.93 wgwjqb UvKv Ki c~e©eZ©x gybvdv AR©b K‡i, hv
2008 mvj †_‡K 7% †ekx| 2009 mv‡ji Avw_©K djvdj Ges cÖ¯—vweZ e›U‡bi wnmve ZvwiL t XvKv 1
Was on leave from January 21, 2008 till February 3, 2009.
wb‡P †`Lv‡bv njt GwcÖj 29, 2010 2
Became Director of the Company on October 28, 2009.

56
Annexure-3 Annexure-3

Status of compliance with the conditions imposed by the Commission's Notification No. SEC/CMRRCD/2006-
158/Admin/02-08 dated February 20, 2006:

Condition No. Title Compliance Explanation for Non-compliance 3.00 Audit Committee
Status with the Condition 3.1 (I) Formation of Committee Complied
1.1 Board’s Size: Board members should Complied 3.1 (ii) Constitution of Committee with
not be less than 5 (five) and more Board members including one
than 20 (twenty) Independent Director Complied
1.2 (I) Appointment of Independent Complied 3.1 (iii) Filling of Casual Vacancy in the Audit
Director: At least 1/10th Committee N/A Not arisen
1.2 (ii) Appointment of Independent Complied 3.2 (I) Selection of the Chairman of the
Director by elected directors Audit Committee Complied
1.3 Chairman and Chief Executive Officer Complied 3.2 (ii) Professional Qualification and
should be different person experience of the Chairman of the
1.4 Directors’ Report to Shareholders Audit Committee Complied
to include declaration on: 3.3.1 (I) Reporting of the activities of the
1.4 (a) Fairness of Financial Statements Complied Audit Committee of the Board Complied
1.4 (b) Maintenance of proper books of 3.3.1 (ii) (a) Reporting of Conflict of Interest to
accounts Complied the Board of Directors N/A Not arisen
1.4 (c) Adaptation and consistent 3.3.1 (ii) (b) Reporting of any fraud or
application of appropriate irregularity or material defect in the
accounting policies and estimates Complied internal control system to the Board
1.4 (d) Compliance with Bangladesh of Directors N/A Not arisen
Accounting Standards (BAS) Complied 3.3.1 (ii) © Reporting of non-compliance of
1.4 (e) Soundness and efficiency of Internal laws to the Board of Directors N/A Not arisen
Control System Complied 3.3.1 (ii) (d) Reporting of any other matter to the
1.4 (f ) Ability of the Company to continue Board of Directors N/A Not arisen
as Going Concern Complied 3.3.2 Reporting to the SEC by the
1.4 (g) Significant deviation in operating Committee N/A Not arisen
results from last year N/A 3.4 Reporting of the activities to the
1.4 (h) Presentation of key operating and Shareholders and General
financial data of at least three years Complied Investors Complied
1.4 (I) Declaration of Dividend Complied 4.00 External/Statutory Auditors:
1.4 (j) Details of Board Meeting and 4.00 (I) Non-engagement in appraisal or
attendance of Directors Complied valuation Complied
1.4 (k) Shareholding pattern Complied 4.00 (ii) Non-engagement in designing of
2.1 Appointment of CFO, Head of Financial Information System
Internal Audit and Company 4.00 (iii) Non-engagement in Book-Keeping Complied
Secretary and defining of their 4.00 (iv) No-engagement in Broker-dealer
respective roles, responsibilities and service Complied
duties Complied 4.00 (v) Non-engagement in Actuarial Complied
2.2 Attendance of CFO and Company Services
Secretary at Board of Directors’ 4.00 (vi) Non-engagement in Internal Audit Complied
meeting Complied 4.00 (vii) Non-engagement in any other
services Complied

58
Statement of RESPONSIBILITY OF CEO AND CFO

In preparation of the Annual Report of the Company for 7. We as member of Asset Liability Committee
the year 2009, we hereby state that: (ALCO) of the Company, have been careful about
proper evaluation of all components of assets and
1. All the Financial Statements & Reports presented liabilities of the company and ensured due
here comply with the International Financial diligence to reflect their fair position in the
Reporting Standards (IFRS), as adopted by the Balance Sheet and control their value in the best
Institute of Chartered Accountants of Bangladesh interest of the company.
(ICAB). These also comply with the relevant laws of 8. Finally, as the main responsible persons from the
Bangladesh Bank, Securities and Exchange Management regarding maintaining the system
Commission, Registrar of Joint Stock Companies, of financial records as well as Financial
National Board of Revenue and other regulatory Management of the Company, we have
authorities. There is no significant deviation from performed our due diligence to ensure objectivity
the relevant and applicable laws, regulations and and fairness. We have exercised our objectivity,
guidance, after exercising Due Diligence. integrity and best judgments to render proper
2. To represent the true state of the Company's value of the financial records.
affairs in the Financial Reports, reasonable care
and prudence have been applied. The
Management accepts the responsibility about the
integrity and objectivity of the Reports.
3. To ensure fair representation, safeguard the Assets
and detect and prevent any fraud and/or
irregularities, the Company has adopted a Md
Md. Saiful Islam Akhand Mustafizur Rahman
comprehensive system of Internal Control as well Chief Financial Officer Managing Director
as system of Accounting records. These
procedures and practices are monitored and
reviewed regularly and necessary measures are
adopted as and when required.
4. The Audit Committee of the Board reviews the
system of Internal Control and Accounting System
to ensure the efficacy of those systems and
ensure proper accountability. The Committee sits
with the Internal Auditor and External Auditor as
and when required to ensure that proper internal
control procedures are observed and verify their
procedure and findings. The Committee learns
first hand about the efficacy of the system and
specific findings about operational aspects of the
PROJECT FINANCE company as well as outcome of audits.
5. The Internal Compliance Manager has full access
Project Finance is provided to a complete to the Committee and objectively reports about
commercial project for procurement of land, the activities and/or any irregularities.
developing infrastructures and procurement 6. The external Auditor has audited and verified all
of machineries/equipment. Here we have the financial records and certified the reports. The
provided Project Finance to a composite External Auditor has carried out its job
textiles project, as part of debt financing. independently and objectively. We also hereby
declare that we have complied with their
observations and suggestions.

60
AUDITORS` REPORT &
AUDITED FINANCIAL STATEMENTS
OF
INTERNATIONAL LEASING & FINANCIAL SERVICES LIMITED
& ITS SUBSIDIARY
WORKING CAPITAL FINANCE
FOR THE YEAR ENDED DECEMBER 31,2009
PRIME TEXTILE
we provide Working Capital Financing for an on-
going commercial/industrial concern for
working capital requirement. We have provided
AUDITORS` REPORT TO THE SHAREHOLDERS INTERNATIONAL LEASING AND FINANCIAL SERVICES LIMITED AND ITS SUBSIDIARIES
OF Consolidated Balance Sheet
INTERNATIONAL LEASING & FINANCIAL SERVICES LIMITED as at December 31, 2009

(Figures in BDT)
Notes 2009 2008

PROPERTY AND ASSETS

Cash 3(a) 53,116,566 26,192,060


In hand (including foreign currencies) 82,976 159,178
We have audited the accompanying Financial Statements We also report that: Balance with Bangladesh Bank and its agent bank (s) 53,033,590 26,032,882
of International Leasing & Financial Services Limited (The (including foreign currencies)
Non-Banking Financial Institution) which comprises a) We have obtained all the information and
Balance Sheet as on December 31, 2009 and the related explanations, which to the best of our knowledge and Balance with banks and other financial institutions 4(a) 795,369,710 715,171,598
Profit and Loss Account, Cash Flow Statement, Statement belief were necessary for the purpose of our audit, and In Bangladesh 795,369,710 715,171,598
of changes in Shareholders' Equity and notes thereof for made due verification thereof; Outside Bangladesh - -
the year then ended. We have also audited the
consolidated Balance Sheet as of December 31,2009 and b) In our opinion, proper books of account as required by
Money at call and short notice - -
the related consolidated profit and Loss account, law have been kept by the Company so far as it
consolidated cash flow statement, consolidated statement appeared from our examination of those books;
Investments 5 (a) 1,773,554,981 1,679,066,029
of changes in Shareholders Equity and notes to the c) The Company's consolidated Balance Sheet and Profit
consolidated financial statements of International Leasing and Loss account together with the annexed notes Government 1,537,682,133 1,621,718,278
& Financial Services Limited and its subsidiary for the year thereto dealt with by this report are in agreement Others 235,872,848 57,347,751
then ended. The preparation of these Financial Statements with the books of account;
is the responsibility of the Company's management. Our Leases, loans and advances 6(a) 9,722,159,952 7,410,557,848
responsibility is to express an independent opinion on d) The financial position of the company as at December Leases 3,870,788,883 3,949,856,669
these Financial Statements based on our audit. 31, 2009 and the profit for the year have been properly Loans, cash credits, overdrafts, etc. 5,851,371,069 3,460,701,178
reflected in the consolidated Financial Statements and Bills purchased and discounted - -
We conducted our audit in accordance with Bangladesh the consolidated Financial Statements have been
Standards on Auditing (BSA). Those Standards require that prepared in accordance with Generally Accepted Fixed assets including premises, furniture and fixtures 7(a) 26,625,340 18,825,430
we plan and perform the audit to obtain reasonable Accounting Principles in Bangladesh;
assurance about whether the consolidated Financial e) The consolidated Financial Statements have been Other assets 8(a) 1,237,168,970 1,029,782,058
Statements are free of material misstatements. An audit drawn up in conformity with the rules and regulations
includes examining, on a test basis, evidence supporting issued by the Bangladesh Bank to the extent Non - financial institutional assets - -
the amounts and disclosures in the consolidated Financial applicable to the Company;
Statements. An audit also includes assessing the Total assets 13,607,995,519 10,879,595,023
accounting principles used and significant accounting f) The expenditure incurred and payments made were
estimates made by management, as well as evaluating the for the purposes of the Company's business;
overall consolidated Financial Statements presentation. We g) The information and explanations required by us have LIABILITIES AND CAPITAL
believe that our audit provides a reasonable basis for our been received and found satisfactory;
opinion. We observed that classification of leases, loans Liabilities
and advances could have been made in a more h) Except as mentioned in note 11.7 of the Financial
conservative way to increase provision further to meet Statement adequate provision has been made for Borrowing from banks, other financial institutions and agents 9 4,423,472,011 4,869,982,521
future losses as mentioned in note no. 11.7 of the Financial leases, loans and advances considered to be classified;
Statements. i) The records and statements submitted by the branch Deposits and other accounts 10 7,174,917,050 4,518,090,537
have been properly maintained and consolidated in Current deposits - -
In our opinion, the consolidated Financial Statements the financial statement; and Bills payable - -
along with notes there on prepared in accordance with Savings bank deposits - -
j) The Company has complied with the relevant laws Term deposits 10.1 6,968,222,770 4,317,348,729
Bangladesh Accounting Standards (BAS), give a true and
pertaining to reserves and maintenance of liquid Bearer certificates of deposit - -
fair view of the state of the Company's affairs as of
assets. Other deposits 10.2 206,694,280 200,741,808
December 31, 2009 and the results of its operations and its
cash flows for the year then ended and comply with
Companies Act 1994, Financial Institutions Act 1993, the Other liabilities 11 (a) 1,085,225,497 734,278,825
Securities and Exchange Rules 1987, the rules and
regulations issued by the Bangladesh Bank and other Total liabilities 12,683,614,558 10,122,351,883
Dated: Dhaka Zoha Zaman Kabir Rashid & Co.
applicable laws and regulations. April 29, 2010. Chartered Accountants

64
Consolidated Balance Sheet - Continued INTERNATIONAL LEASING AND FINANCIAL SERVICES LIMITED
Balance Sheet
as at December 31, 2009

(Figures in BDT) (Figures in BDT)


Notes 2009 2008 Notes 2009 2008
PROPERTY AND ASSETS

Capital / Shareholders' equity 924,377,049 757,242,832 Cash 3 53,102,985 26,186,051


Paid- up capital 12.2 290,950,000 253,000,000
In hand (including foreign currencies) 69,395 153,169
Share premium 13 62,500,000 62,500,000
Statutory reserve 14 186,136,000 166,636,000 Balance with Bangladesh Bank and its agent bank (s) 53,033,590 26,032,882
Other reserve - - (including foreign currencies)
Retained earnings/surplus 15(a) 384,791,049 275,106,832
Balance with banks and other financial institutions 4 771,061,232 704,764,305

Minority interest 16 3,912 308 In Bangladesh 771,061,232 704,764,305


Outside Bangladesh - -
Total liabilities and Shareholders' equity 13,607,995,519 10,879,595,023
Money at call and short notice - -
Net asset value per share 17(a) 317.71 299.31
Investments 5 1,618,643,870 1,622,766,029

CONSOLIDATED OFF-BALANCE SHEET ITEMS Government 1,537,682,133 1,621,718,278


Others 80,961,737 1,047,751
Contingent liabilities 18 183,703,722 206,223,183
Leases, loans and advances 6 9,675,547,858 7,403,041,196
Acceptances and endorsements - -
Letters of guarantee 183,703,722 206,223,183 Leases 3,870,788,883 3,949,856,669
Irrevocable letters of credit - - Loans, cash credits, overdrafts, etc. 5,804,758,975 3,453,184,526
Bills for collection - - Bills purchased and discounted - -
Other contingent liabilities - -
Fixed assets including premises, furniture and fixtures 7 14,409,001 7,602,429
Other commitments - -

Documentary credits and short term trade -related transactions - - Other assets 8 1,231,129,842 1,103,722,905
Forward assets purchased and forward deposits placed - -
Undrawn note issuance and revolving underwriting facilities - - Non - financial institutional assets - -
Undrawn formal standby facilities , credit lines and other commitments - -
Total assets 13,363,894,788 10,868,082,915
Total Off-Balance Sheet items 183,703,722 206,223,183

LIABILITIES AND CAPITAL


The annexed notes form an integral part of these financial statements.
Liabilities

Borrowing from banks, other financial institutions and agents 9 4,423,472,011 4,869,982,521

Deposits and other accounts 10 7,174,917,050 4,518,090,537


Current deposits - -
Mahbub Jamil Mustafizur Rahman Nehal Ahmed FCA Bills payable - -
Chairman Managing Director Company Secretary Savings bank deposits - -
Term deposits 10.1 6,968,222,770 4,317,348,729
Signed in terms of our separate report of even date
Bearer certificates of deposit - -
Other deposits 10.2 206,694,280 200,741,808

Other liabilities 11 950,924,560 724,435,397


Dated : Dhaka Zoha Zaman Kabir Rashid & Co.
April 29, 2010 Chartered Accountants Total liabilities 12,549,313,621 10,112,508,455

66
Balance Sheet - Continued INTERNATIONAL LEASING AND FINANCIAL SERVICES LIMITED AND ITS SUBSIDIARIES
Consolidated Profit and Loss Account
for the year ended December 31, 2009

(Figures in BDT) (Figures in BDT )


Notes 2009 2008 Notes 2009 2008

OPERATING INCOME
Capital / Shareholders' equity 814,581,167 755,574,460 Interest income 20(a) 1,434,215,469 1,225,566,494
Interest paid on deposits & borrowings 21 (a) (1,285,727,816) (1,037,394,163)
Paid- up capital 12.2 290,950,000 253,000,000 Net interest income 148,487,652 188,172,332
Share premium 13 62,500,000 62,500,000 Investment income 22 96,375,203 19,460,720
Commission, fees, exchange and brokerage 23 (a) 137,686,311 18,152,048
Statutory reserve 14 186,136,000 166,636,000
Other operating income 24 (a) 3,628,518 1,015,977
Other reserve - - Total operating income (A) 386,177,685 226,801,076
Retained earnings/surplus 15 274,995,167 273,438,460
OPERATING EXPENSES
Salaries and allowances 25 (a) 35,474,501 20,979,213
Rent, taxes, insurance & electricity 26 (a) 10,562,179 5,827,514
Total liabilities and Shareholders' equity 13,363,894,788 10,868,082,915 Legal expenses 27 (a) 1,264,484 1,105,822
Postage, stamp & telecommunication 28 (a) 1,731,756 1,312,100
Net asset value per share 17 279.97 298.65 Stationery, printing & advertisements 29 (a) 4,001,028 3,443,815
Managing Director's salary and benefits 30 2,792,000 2,792,000
Directors' fees & meeting expenses 31 (a) 1,075,706 392,598
Auditors' fees 32 (a) 125,400 124,500
OFF BALANCE SHEET ITEMS Charges on loan losses - -
Depreciation, amortization and repair of assets 33 (a) 13,099,296 4,491,350
Contingent liabilities 18 183,703,722 206,223,183 Other expenses 34 (a) 8,781,423 5,459,600
Acceptances and endorsements - - Total operating expenses (B) 78,907,773 45,928,511
Letters of guarantee 183,703,722 206,223,183 Profit before provisions (C=A-B) 307,269,912 180,872,565
Irrevocable letters of credit - -
Bills for collection - - Provision against lease, loans and advances 35 46,396,196 55,849,244
Other contingent liabilities - - Provision for diminution in value of investments 36 2,754,560 -
Other provisions - -
Total provision (D) 49,150,756 55,849,244
Other commitments - -
Total profit before taxes (C-D) 258,119,156 125,023,321
Documentary credits and short term trade -related transactions - -
Forward assets purchased and forward deposits placed - - Tax expenses 37 (a) 53,034,398 11,972,140
Undrawn note issuance and revolving underwriting facilities - -
Net profit after taxation 205,084,757 113,051,181
Undrawn formal standby facilities , credit lines and other commitments - -
Minority interest 541 8
Total Off-Balance Sheet items including contingent liabilities 183,703,722 206,223,183
Net profit attributable to shareholders of parent Company 205,084,216 113,051,173

Appropriations 19,500,000 22,700,000


Statutory reserve 19,500,000 22,700,000
General reserve - -
The annexed notes form an integral part of these financial statements. Surplus in profit and loss account 185,584,216 90,351,173

Earnings per share (EPS) 38 (a) 70.49 38.86

The annexed notes form an integral part of these financial statements.

Mahbub Jamil Mustafizur Rahman Nehal Ahmed FCA


Chairman Managing Director Company Secretary
Mahbub Jamil Mustafizur Rahman Nehal Ahmed FCA
Signed in terms of our separate report of even date Chairman Managing Director Company Secretary
Signed in terms of our separate report of even date

Dated : Dhaka Zoha Zaman Kabir Rashid & Co. Dated : Dhaka Zoha Zaman Kabir Rashid & Co.
April 29, 2010 Chartered Accountants April 29, 2010 Chartered Accountants

68
INTERNATIONAL LEASING AND FINANCIAL SERVICES LIMITED INTERNATIONAL LEASING AND FINANCIAL SERVICES LIMITED AND ITS SUBSIDIARIES
Profit and Loss Account Consolidated Cash Flow Statement
for the year ended December 31, 2009 for the year ended December 31, 2009
(Figures in BDT)
2009 2008
A) Cash flows from operating activities
Interest receipts in cash 1,465,294,301 1,122,977,173
(Figures in BDT )
Interest payments (1,214,131,530) (975,890,022)
Notes 2009 2008 Dividend receipts 1,690,250 558,925
Fees and commission & brokerage receipts in cash 138,348,811 17,470,798
OPERATING INCOME Recoveries of loans previously written off - -
Interest income 20 1,324,536,854 1,217,420,722 Cash payments to employees (37,154,751) (23,065,692)
Interest paid on deposits & borrowings 21 (1,197,050,787) (1,030,978,041) Cash payments to suppliers - -
Net interest income 127,486,066 186,442,681 Income taxes paid (33,869,968) (11,873,808)
Investment income 22 96,375,203 19,460,720 Receipts from other operating activities 102,399,009 20,169,478
Commission, fees, exchange and brokerage 23 7,867,231 11,104,644 Payments for other operating activities (26,598,931) (20,900,703)
Other operating income 24 2,521,188 1,122,596 Cash generated from operating activities before changes
Total operating income (A) 234,249,689 218,130,641 in operating assets and liabilities 395,977,190 129,446,149
Increase / decrease in operating assets and liabilities
Statutory deposits - -
OPERATING EXPENSES Purchase of trading securities (Treasury bills) - -
Lease, loans and advances to banks and other FIs (116,547,872) (40,634,080)
Salaries and allowances 25 25,905,952 18,531,432 Lease, loans and advances to customers (3,124,615,958) (1,422,746,495)
Rent, taxes, insurance & electricity 26 4,921,661 4,123,128 Other assets (221,148,502) (23,210,887)
Legal expenses 27 1,222,796 1,105,822 Deposits from other banks / borrowings 1,942,207,500 446,592,500
Postage, stamp & telecommunication 28 1,039,694 1,085,745 Deposits from customers 708,666,541 616,961,974
Stationery, printing & advertisements 29 3,050,817 2,660,487 Other liabilities account of customers 184,913,524 8,849,564
Managing Director's salary and benefits 30 2,792,000 2,792,000 Trading liabilities - -
Directors' fees & meeting expenses 31 705,306 390,598 Other deposits - -
Auditors' fees 32 104,500 104,500 Other liabilities 6,673,493 26,694,306
Net Increase / decrease in operating assets and liabilities (619,851,274) (387,493,119)
Charges on loan losses - -
Depreciation,amortization and repair of assets 33 6,733,478 3,593,255 Net cash from operating activities (223,874,084) (258,046,970)
Other expenses 34 6,693,362 5,000,154 B) Cash flows from investing activities
Total operating expenses (B) 53,169,567 39,387,120 Proceeds from sale of securities 7,327,634,716 11,571,531,819
Payments for purchases of securities (7,325,012,557) (12,030,277,691)
Payments for purchases of DSE & CSE Membership (97,454,406) (56,300,000)
Profit before provisions (C=A-B) 181,080,122 178,743,521 Net change agianst purchase/sale of property, plant and equipment (17,251,932) (19,377,914)
Receipts against lease obligation 2,300,885 -
Net change of investment in subsidiary - (24,208,916)
Provision against lease, loans and advances 35 46,396,196 55,849,244 Net cash used in investing activities (109,783,293) (558,632,702)
Provision for diminution in value of investments 36 2,754,560 - C) Cash flows from financing activities
Other provisions - - Receipts of long term loan 2,723,340,308 1,520,865,470
Total provision (D) 49,150,756 55,849,244 Repayment of long term loan (2,120,350,818) (1,016,318,980)
Net draw down/(payment) of short term loan (125,000,000) 570,000,000
Total profit before taxes (C-D) 131,929,366 122,894,277 Issuance of ordinary share - 60,000,000
Tax expenses 37 34,972,659 11,511,476 Receipts share money deposit - 20,000,000
Dividend paid (37,209,495) (45,137,902)
Net profit after taxation 96,956,707 111,382,801
Net Cash from financing activities 440,779,995 1,109,408,589
Appropriations 19,500,000 22,700,000 D) Net increase / (decrease) in cash and cash equivalents (A+ B + C) 107,122,618 292,728,917
Statutory reserve 19,500,000 22,700,000 E) Effects of exchange rate changes on cash and cash equivalents - -
General reserve - - F) Cash and cash equivalents at beginning of the year 741,363,658 448,634,741
Surplus in profit and loss account 77,456,707 88,682,801 G) Cash and cash equivalents at end of the year (D+E+F) 848,486,276 741,363,658
Cash and cash equivalents at end of the year represents
Cash in hand (including foreign currencies) 82,976 159,178
Earnings per share (EPS) 38 33.32 38.28 Balance with Bangladesh Bank and its agent bank (s) 53,033,590 26,032,882
(including foreign currencies)
Balance with banks and other financial institutions {notes 4 (a)} 795,369,710 715,171,598
The annexed notes form an integral part of these financial statements. Money at call and short notice - -
Prize bonds - -
Total cash and cash equipments as of December 31 848,486,276 741,363,658
The annexed
ed notes fform an integral par
part of these financial statements.

Mahbub Jamil Mustafizur Rahman Nehal Ahmed FCA


Chairman Managing Director Company Secretary Mahbub Jamil Mustafizur Rahman Nehal Ahmed FCA
Chairman Managing Director Company Secretary
Signed in terms of our separate report of even date
Signed in terms of our separate report of even date

Dated : Dhaka Zoha Zaman Kabir Rashid & Co. Dated : Dhaka Zoha Zaman Kabir Rashid & Co.
April 29, 2010 Chartered Accountants April 29, 2010 Chartered Accountants

70
INTERNATIONAL LEASING AND FINANCIAL SERVICES LIMITED

Chartered Accountants
Nehal Ahmed FCA
Company Secretary

Signed in terms of our separate report of even date

Zoha Zaman Kabir Rashid & Co.


(46,000,000)
113,051,173

67,051,173
757,242,832
(37,950,000)
205,084,216

167,134,216
924,377,049

690,191,660
(Figures in BDT )

Total

757,242,832
Cash Flow Statement

-
-
-
-
-
-
-
-
-
-
-
for the year ended December 31, 2009
(Figures in BDT )
2009 2008
A) Cash flows from operating activities
Interest receipts in cash 1,355,615,686 1,114,831,401

(23,000,000)
(46,000,000)
113,051,173
(22,700,000)

21,351,173
275,106,832
(19,500,000)
(37,950,000)
(37,950,000)
205,084,216

109,684,216
384,791,049

253,755,660
Retained
Earnings

275,106,832
Interest payments (1,154,055,336) (975,967,826)
Dividend receipts 1,690,250 558,925

-
-
-
-

-
-
-
-
Fees and commission receipts in cash 8,529,731 10,423,394
Recoveries of loans previously written off - -

INTERNATIONAL LEASING AND FINANCIAL SERVICES LIMITED AND ITS SUBSIDIARIES


Cash payments to employees (27,586,202) (20,617,911)
Cash payments to suppliers - -
Income taxes paid (24,565,373) (11,542,609)
Receipts from other operating activities 97,206,141 20,024,391

22,700,000

22,700,000
166,636,000
19,500,000
19,500,000
186,136,000

143,936,000
Statutory
Reserve

166,636,000
Payments for other operating activities (17,159,151) (17,826,164)

-
-

-
-
-
-
-
-
Cash generated from operating activities before changes

-
-

-
-
-
in operating assets and liabilities 239,675,745 119,883,601
Increase / decrease in operating assets and liabilities

Consolidated Statement of Changes in Shareholders' Equity


Statutory deposits - -
Purchase of trading securities (Treasury bills) - -
Lease, loans and advances to banks and other FIs (116,547,872) (40,634,080)
Lease, loans and advances to customers (2,161,020,516) (1,229,729,843)

62,500,000
62,500,000

62,500,000
Share
Premium

62,500,000
Other assets (105,594,851) (4,790,803)
Deposits from other banks / borrowings 1,942,207,500 446,592,500

-
-
-
-

-
-
-
-
-
-

-
-
-
-
-

-
Deposits from customers 708,666,541 616,961,974

for the year ended December 31, 2009


Other liabilities account of customers 71,728,983 2,032,380
Trading liabilities - -
Other deposits - -
Other liabilities 3,728,782 16,805,174
Net Increase / decrease in operating assets and liabilities 343,168,567 (192,762,699)

Mustafizur Rahman
23,000,000

23,000,000
253,000,000
37,950,000
37,950,000

290,950,000

230,000,000
Share
Capital

253,000,000

Managing Director
Net cash from operating activities 582,844,312 (72,879,098)
B) Cash flows from investing activities

-
-
-

-
-
-
-
-
-
-
-
-

-
Proceeds from sale of securities 7,327,634,716 11,571,531,819
Payments for purchases of securities (7,323,512,557) (12,030,277,691)
Net change agianst purchase/sale of property, plant and equipment (12,333,491) (5,759,088)
Receipts against lease obligation 2,300,885 -
Net change of investment in subsidiary - (24,208,916)
Net cash used in investing activities (5,910,446) (488,713,876)
C) Cash flows from financing activities
Receipts of long term loan 1,257,890,308 1,280,365,470
Repayment of long term loan (1,579,400,818) (961,318,980)

Net gains and losses not recognized in the income statement


Surplus / deficit on account of revaluation of investments

Issuance of bonus share for 2007


Cash dividend for 2007
Profit after tax for the year 2008
Transfer to statutory reserve
Net gains and losses not recognized in the income statement

Currency translation differences


Surplus / deficit on account of revaluation of investments

Transfer to statutory reserve


Issuance of bonus share for 2008
Cash dividend for 2008
Profit after tax for the year 2009

Surplus / deficit on account of revaluation of properties


Currency translation differences
Surplus / deficit on account of revaluation of properties
Net draw down/(payment) of short term loan (125,000,000) 570,000,000
Dividend paid (37,209,495) (45,137,902)
Net Cash from financing activities (483,720,005) 843,908,589

integral part of these financial statements.


D) Net increase / (decrease) in cash and cash equivalents (A+ B + C) 93,213,861 282,315,615
E) Effects of exchange rate changes on cash and cash equivalents - -
F) Cash and cash equivalents at beginning of the year 730,950,356 448,634,741
G) Cash and cash equivalents at end of the year (D+E+F) 824,164,217 730,950,356
Cash and cash equivalents at end of the year represents
Cash in hand (including foreign currencies) 69,395 153,169
Balance with Bangladesh Bank and its agent bank (s) 53,033,590 26,032,882
(including foreign currencies)
Balance with banks and other financial institutions {notes 4 (1)} 771,061,232 704,764,305
Money at call and short notice - -
Prize bonds - -
Total cash and cash equipments as of December 31 824,164,217 730,950,356

The annexed notes form an integral part of these financial statements.

Balance as at December 31, 2008


Balance as at December 31, 2009
Balance as at January 01, 2009

Balance as at January 01, 2008


Changes during the year 2008
Changes during the year 2009

es fform an int
Net changes in 2008
Net changes in 2009
Mahbub Jamil Mustafizur Rahman Nehal Ahmed FCA

Particulars

he annexed notes
Chairman Managing Director Company Secretary

Mahbub Jamil

Dated : Dhaka
April 29, 2010
Signed in terms
erms of our separate
separ report
epor of even date

Chairman
Dated : Dhaka Zoha Zaman Kabir Rashid & Co.

The
April 29, 2010 Chartered Accountants

72
74
INTERNATIONAL LEASING AND FINANCIAL SERVICES LIMITED
Statement of Changes in Shareholders' Equity
for the year ended December 31, 2009
(Figures in BDT )
Share Share Statutory Retained
Particulars Capital Premium Reserve Earnings Total

Balance as at January 01, 2009 253,000,000 62,500,000 166,636,000 273,438,460 755,574,460


Changes during the year 2009
Surplus / deficit on account of revaluation of properties - - - - -
Surplus / deficit on account of revaluation of investments - - - - -
Currency translation differences - - - - -
Net gains and losses not recognized in the income statement - - - - -
Issuance of bonus share for 2008 37,950,000 - - (37,950,000) -
Cash dividend for 2008 - - - (37,950,000) (37,950,000)
Profit after tax for the year 2009 - - - 96,956,707 96,956,707
Transfer to statutory reserve - - 19,500,000 (19,500,000) -
Net changes in 2009 37,950,000 - 19,500,000 1,556,707 59,006,707
Balance as at December 31, 2009 290,950,000 62,500,000 186,136,000 274,995,167 814,581,167

Balance as at January 01, 2008 230,000,000 62,500,000 143,936,000 253,755,660 690,191,660


Changes during the year 2008
Surplus / deficit on account of revaluation of properties - - - - -
Surplus / deficit on account of revaluation of investments - - - - -
Currency translation differences - - - - -
Net gains and losses not recognized in the income statement - - - - -
Issuance of bonus share for 2007 23,000,000 - - (23,000,000) -
Cash dividend for 2007 - - - (46,000,000) (46,000,000)
Profit after tax for the year 2008 - - - 111,382,801 111,382,801
Transfer to statutory reserve - - 22,700,000 (22,700,000) -
Net changes in 2008 23,000,000 - 22,700,000 19,682,801 65,382,801
Balance as at December 31, 2008 253,000,000 62,500,000 166,636,000 273,438,460 755,574,460

The annexed notes form an integral part of these financial statements.

Mahbub Jamil Mustafizur Rahman Nehal Ahmed FCA


Chairman Managing Director Company Secretary

Signed in terms of our separate report of even date

Dated : Dhaka Zoha Zaman Kabir Rashid & Co.


April 29, 2010 Chartered Accountants

INTERNATIONAL LEASING AND FINANCIAL SERVICES LIMITED


LIQUIDITY STATEMENT
(Analysis of maturity of assets and liabilities)
as at December 31, 2009

(Figures in BDT )
Particulars Up to 1 month 1-3 months 3-12 months 1-5 years Above 5 years Total

Assets:
Cash in hand 69,395 - - - - 69,395
Balance with Bangladesh Bank and its agent 53,033,590 - - - - 53,033,590
Balance with banks and other financial institutions 435,548,730 100,000,000 235,512,502 - - 771,061,232
Money at call and short notice - - - - - -
Investments 80,961,737 447,462,316 490,298,260 157,023,450 442,898,107 1,618,643,870
Leases, loans and advances 1,083,808,974 559,708,924 1,335,207,525 5,367,269,453 1,329,552,982 9,675,547,858
Fixed assets including premises, furniture and fixtures 155 - 8,705 12,936,081 1,464,060 14,409,001
Other assets - 448,395,417 645,594,687 57,140,039 79,999,700 1,231,129,842
Non banking assets - - - - - -
Total assets (A) 1,653,422,582 1,555,566,656 2,706,621,679 5,594,369,023 1,853,914,848 13,363,894,788

Liabilities:
Borrowings from banks, other financial
institutions and agents 2,102,276,068 306,270,679 630,149,228 1,360,824,853 23,951,183 4,423,472,011
Term deposits 705,761,108 998,942,562 4,353,064,368 903,492,475 6,962,257 6,968,222,770
Other deposits 7,348,601 327,250 7,459,890 161,495,706 30,062,833 206,694,280
Provision and other liabilities - - 493,981,790 456,942,771 - 950,924,560
Total liabilities (B) 2,815,385,777 1,305,540,491 5,484,655,275 2,882,755,805 60,976,273 12,549,313,621

Net liquidity gap (A - B) (1,161,963,195) 250,026,165 (2,778,033,596) 2,711,613,218 1,792,938,576 814,581,167

The annexed notes form an integral part of these financial statements.

Mahbub Jamil Mustafizur Rahman Nehal Ahmed FCA


Chairman Managing Director Company Secretary

Signed in terms of our separate report of even date

Dated : Dhaka Zoha Zaman Kabir Rashid & Co.


April 29, 2010 Chartered Accountants
INTERNATIONAL LEASING AND FINANCIAL SERVICES LIMITED AND ITS SUBSIDIARIES Notes to the financial statements - continued
Notes to the consolidated financial statements
for the year ended December 31, 2009

1 Company and its activities except for cash flow statement. In preparation of these financial statements the company followed respective
provisions of The Companies Act, 1994, The Financial Institutions Act, 1993, The Securities and Exchange Rules,
1.1 Corporate information 1987, the listing rules of Dhaka and Chittagong Stock Exchanges, Guidelines from Bangladesh Bank and
INTERNATIONAL LEASING AND FINANCIAL SERVICES LIMITED (ILFSL), a Non-Banking Financial Institution having Bangladesh Accounting Standards (BAS) and/or Bangladesh Financial Reporting Standards (BFRS) and other
its registered office at Printers Building, 14th floor, 5, Rajuk Avenue, Dhaka-1000, Bangladesh, was incorporated in applicable laws and regulations.
Bangladesh on January 15, 1996 as a Public Limited Company under the companies Act, 1994. The company
obtained its license from Bangladesh Bank on February 19, 1996 as a Non-Banking Financial Institution under the The presentation of these financial statements has been made as per requirement of DFIM Circular No. 11, dated
Financial Institutions Act, 1993 and commenced business on March 24, 1996. The company also obtained licence December 23, 2009 issued by the Department of Financial Institute and Markets of Bangladesh Bank. The
from Bangladesh Bank as Primary Dealer to buy and sell Government Treasury Bonds and Bills on December 11, activities and accounting heads mentioned in that prescribed formats which are not related to the institutions
2003. The company went for Initial Public Offering (IPO) in July 2007 and its shares were listed in both Dhaka have been excluded in preparation of these financial statements.
Stock Exchange Limited and Chittagong Stock Exchange Limited on September 16, 2007.
2.2 Basis of preparation and presentation of the financial statements
1.2 Principal activities The financial statements have been prepared under the historical cost convention in accordance with
The company provides lease finance, term finance, work order finance, project finance, real estate finance, Bangladesh Financial Reporting Standard (BFRS) as practised in Bangladesh. No adjustment has been made for
factoring of accounts receivables, syndication finance, stock brokerage, primary dealership of government inflationary factor affecting the financial statements. The accounting policies, unless otherwise stated, have been
treasury bonds/bills and term deposit schemes. consistently being applied by the company and are consistent with those of the previous year.

1.3 Subsidiary company 2.3 Use of estimates and judgement


International Leasing Securities Limited, a wholly owned subsidiary company of International Leasing and Preparation of the financial statements in conformity with BAS requires the use of certain critical accounting
Financial services Limited, was incorporated on April 09, 2008 as a private limited company bearing registration estimates. It also requires management to exercise its judgment in the process of applying the company's
No. C-70738 (3247)/08 under Companies Act 1994 with an authorised share capital of Tk. 250,000,000. accounting policies that affect the reported amounts of revenue and expenses, assets and liabilities. Due to
International Leasing and Financial Services Limited holds 99.9995% share of this company (599,997 nos. of involvement of inherent uncertainty in making estimates, actual results could be different from those estimates.
shares of Tk. 100 each). The company started its operation from August 31, 2008. The main business of the
Company is to carry on the business as a broker, dealer in stocks and securities, commercial papers, bonds, 2.4 Consolidation of operations of subsidiaries
debentures, debenture stocks, foreign currencies, treasury bills/bonds and/or any financial instruments. The financial statements of the company and its subsidiaries, as mentioned in note no. 1.3 have been
consolidated in accordance with Bangladesh Accounting Standard no. 27 “Consolidated and Separate Financial
International Leasing Securities Limited acquired 99,997 no. of shares of Hong Kong Bangladesh Securities Statements”. The consolidation of the financial statements has been made after eliminating all material inter
Limited as per terms set forth in vendors' agreement dated 25-10-2009 between previous shareholders of Hong company transactions.
Kong Bangladesh securities Limited and International Leasing Securities Limited. Upon acquisition of 99,997 no.
of shares, Hong Kong Bangladesh Securities Limited becomes a wholly owned subsidiary company of ILSL from The total profits of the company and its subsidiaries are shown in the consolidated profit and loss account, with
October 25, 2009. the proportion of profit after tax pertaining to minority shareholders being deducted as “Minority Interest”.

International Leasing and Financial Services Limited is the owner of 99.9995% shares of International Leasing All assets and liabilities of the company and its subsidiaries are shown in the consolidated balance sheet. The
Securities Limited and International Leasing Securities Limited is the owner of 99.997% shares of Hong Kong interest of minority shareholders of the subsidiaries are shown in the consolidated balance sheet under the
Bangladesh securities Limited. By virtue of this ownership of International Leasing Securities Limited, heading “Minority Interest”.
International Leasing and Financial Services Limited is also the owner of 99.996% shares of Hong Kong
Bangladesh securities Limited. 2.5 Branch accounting
The company has only one branch at Chittagong and no overseas branch as of December 31, 2009. Accounts of
The main business of Hong Kong Bangladesh securities Limited is to carry on the business as a broker, dealer in the branch are maintained at head office from which these accounts are drawn up.
stocks and securities, commercial papers, bonds, debentures, debenture stocks, foreign currencies, treasury
bills/bonds and/or any financial instruments
2.6 Cash flow statements
The cash flow statement is prepared using the direct method as stipulated in Bangladesh Accounting Standard
1.4 Chittagong branch (BAS) 7 – “Cash Flow Statements”. Cash and cash equivalents for cash flow statement comprises mainly of cash in
The company opened its branch in Chittagong on June 24, 2008. The approval of opening of this branch was hand and balances at banks.
obtained from Bangladesh Bank on November 11, 2007 vide approval letter no. DFIM (L)/1053/38(1)/2007.
2.7 Foreign currency transactions
2 Basis of preparation and significant accounting policies Transactions denominated in foreign currencies are converted into taka at rate prevailing at the respective date.
Assets and liabilities denominated in foreign currencies are converted into taka at the rate of exchange
2.1 Statement of compliance prevailing at the date of the balance sheet. Profit or loss arising on conversion is credited or debited to profit &
The financial statements have been prepared on a going concern basis, which contemplates the realization of loss account.
assets and the satisfaction of liabilities in the normal course of business following accrual basis of accounting

76
Notes to the financial statements - continued Notes to the financial statements - continued

2.8 Accounting for leases 2.10.5 Income from PD & treasury operations
As per BAS 17 “Leases”, leases are classified as finance leases whenever the terms of the leases transfer
substantially all the risks and rewards of ownership, other than legal title, to the lessees. All other leases are Coupon income
classified as operating leases. Coupon income from Government treasury bonds is recognized on an accrual basis at a constant rate
determined in respective auction, which is realized from Bangladesh Bank on half yearly basis.
As per BAS 17, in case of finance lease, the aggregate lease rental receivables including unguaranteed residual
value throughout the lease term are recorded as gross rental receivables while the excess of gross rental Discount income
receivables over the total acquisition cost including interest during the period of acquiring the lease equipment Discount income (excess of face value over purchase price) from government treasury bonds and bills
constitutes the unearned interest income. The unearned interest income is amortized to revenue on a monthly are recognized periodically on an accrual basis.
basis over the lease term yielding a constant rate of return over the period.
Capital gain/loss
2.9 Accounting for direct & real estate finance
Gain or loss on sale of Government treasury bonds and bills is determined/recognized as the difference
Books of accounts for these are maintained based on the accrual basis of accounting. Outstanding principal, between the sale proceeds and aggregate of present value and accrued coupon income of respective
along with the accrued interest (where capitalized) thereon are accounted for as direct /real estate finance assets bonds and bills are recognized when those are sold.
of the Company. Interest earnings are recognized as operational revenue periodically.
2.11 Interest suspense account
2.10 Revenue recognition (BAS 18, “Revenue”)
Lease income earned and income from direct finance, overdue for three months (or equivalent, i.e. 90 days) or
BAS 18 is a general revenue recognition standard, which states that revenue should be measured at the fair value more for lease/term finance up to 5 years tenure and for six months (or equivalent, i.e. 180 days) or more for
of the consideration received or receivable. This is usually the amount of cash or cash equivalents received or lease/term finance of more than 5 years tenure is not recognized as revenue and credited to interest suspense
receivable and recognized when it is probable that economic benefits will flow to the entity. account as per FID Circular No. 03 dated May 03, 2006. Suspended interests are recognized as revenue and
credited to profit and loss account on realization basis.
2.10.1 Income from lease (BAS 17, “Leases”)
Income from leases is recognized based on a pattern reflecting a constant periodic rate of return on the 2.12 Recognition of fixed assets and depreciation (BAS 16 “Property, Plant & Equipment”)
net investment in the leases.
Recognition
Unrealised income is suspended where necessary in accordance with the requirements of relevant An item of fixed assets is recognized as an asset when it is probable that future economic benefits associated
circular issued by the Department of Financial Institutions and Markets (DFIM) of Bangladesh Bank. with the asset will flow to the enterprise and the cost of the asset to the enterprise can be measured reliably. The
cost of an item of fixed assets is its purchase price (net of discounts and rebates), including import duties and
Interest on advance against leases is recognized on an accrual basis, which is calculated on advances taxes, and any directly attributable cost of bringing the asset to working condition for its intended use.
from the date of respective disbursement to the date of execution of lease. On execution of lease,
advance including capitalized portion of accrued interest is transferred to gross lease receivables. Measurement
Fixed assets for own use are stated initially at cost and subsequently at cost less accumulated depreciation and
2.10.2 Income from direct finance any accumulated impairment losses or at a re-valued amount less any accumulated depreciation and
Income from direct finance is recognized on a time proportion basis that takes into account the effective subsequent accumulated impairment losses.
yield on the asset. Unrealised income is suspended where necessary in accordance with the
requirements of relevant circular issued by the Department of Financial Institutions and Markets (DFIM) Subsequent expenditure
of Bangladesh Bank.
Subsequent expenditures relating to any item of fixed assets are added to the carrying amount of the asset
when it is probable that future economic benefits, exceeding its present standard of performance, will flow to the
2.10.3 Income from real estate finance company and the cost of the item can be measured reliably. All other costs are recognised in profit and loss
Interest income from real estate finance is recognized on an accrual basis and no interest on this finance account as expense.
is accounted for as revenue where any portion of capital or interest is an arrear for six months or more.
Depreciation
2.10.4 Income from investment in shares Components of an asset with differing patterns of benefits are depreciated separately.

Dividends (BAS 18, “Revenue”) Depreciation on own fixed assets is charged systematically over the asset's useful life. Full year depreciation is
Dividend income is recognized when the legal rights to receive the payments have been established i.e. charged on additions irrespective of date when the related assets are put into use. On the other hand, no
during the period in which dividend is declared in the Annual General Meeting. depreciation has been charged on the month of disposal.

Gain/loss on sale
Gain or loss on sale of shares listed in stock exchanges is recognized when those are sold in the market.

78
Notes to the financial statements - continued Notes to the financial statements - continued

The company follows the straight-line method of depreciation applying annual rates stated as follows: 5 years of continued service 50% of last month basic times 5
6 years of continued service 60% of last month basic times 6
l Furniture and fixtures 15% 7 years of continued service 70% of last month basic times 7
l Office equipment 20% 8 years of continued service 80% of last month basic times 8
l Office decoration 15% 9 years of continued service 90% of last month basic times 9
l Motor vehicles 20% 10 and above years of continued service 100% of last month basic times no. of years of service
Motor Vehicles - Lease hold, principal amount under every rental is being considered as depreciation.
Since the liability amount under the head is not substantial, the actuarial valuation was not felt required.
Disposal or retirement
The gain or loss arising out of disposal or retirement of fixed assets is determined as the difference between the 2.19 Other employees' benefit obligation
sale proceeds and the carrying amount of the asset and is recognized in profit and loss account. The company has several types of loans and advances scheme like specific purpose loan, provident fund
loan, house building loan and loan for buying motor vehicle guided by the employees' service rules. In
2.13 Intangible assets (BAS- 38) addition the Company operates a group life insurance scheme for its employees.
Costs incurred to procure softwares represent as intangible assets (note- 8.4.1), once fully operational,
will be amortised on a systematic basis over the best estimate of its useful life as per decision of the 2.20 Tax provision
Board of Directors.
Current tax
2.14 Borrowing cost Provision for current tax is made on the basis of the profit for the year as adjusted for taxation purpose in
All borrowing costs are recognized as expenses in the period in which they incurred in accordance with accordance with the provision of Income Tax Ordinance, 1984 and amendments thereto.
benchmark treatment of Bangladesh Accounting Statnderd-23.
Deferred tax
2.15 Accrued expenses, provisions and other payables The company accounts for deferred tax as per Bangladesh Accounting Standard - 12. Deferred tax is
As per BAS 37 “Provisions, Contingent Liabilities and Contingent Assets”, a provision is recognized only provided using the liability method for all temporary timing differences arising between the tax base of
when a past event has created a legal or constructive obligation, an outflow of resources is probable, and assets and liabilities and their carrying value for financial reporting purposes. Tax rate prevailing at the
the amount of the obligation can be estimated reliably. Amount recognized as a provision is the best balance sheet date is used to determine deferred tax.
estimate of settlement amount at balance sheet date.
In calculating deferred tax, temporary difference arising from depreciation of fixed assets and provision
2.16 Investment in shares for gratuity is considered.
Investment in quoted shares has been shown at cost or market price, whichever is lower, on an aggregate
portfolio basis under Bangladesh Accounting Standard (BAS) 25 "Accounting for Investment". Full 2.21 Cash and cash equivalents
provision for diminution in value of shares as of December 31, 2009 on an individual investment basis Cash comprises cash in hand and cash at bank. Cash equivalents are short term, highly liquid investments
has been made in the accounts. that are readily convertible to a known amount of cash and which are subject to an insignificant risk of
change in value.
2.17 Provision for future losses
Provision has been made on outstanding exposures, based on aging and continuous review of the 2.22 Impairment of assets
receivables, as per guidelines of Bangladesh Bank as practiced by the Company. The provision is The Company reviewed long-lived assets for impairment whenever events of changes in circumstances
considered adequate as per management estimation to meet probable future losses. indicate that the book value of the assets may not be recovered. Accordingly, the Company estimates the
recoverable amount of the assets and the impairment losses if any, is recognised in the profit and loss
2.18 Employees' benefits obligations account when the estimated recoverable amount of an assets is less than its carrying amount.

Defined contribution plan


2.23 Earnings Per Share (EPS)
The company operates a recognised contributory provident fund scheme for its permanent employees.
The Company calculates Earnings Per Share (EPS) in accordance with Bangladesh Accounting Standards-
Provident fund is administered by a Board of Trustees and is funded by contributions partly from the
33, which is shown in the face of the Profit and Loss Account, and the computation is stated in Note- 38 &
employees and partly from company at a predetermined rate of 10% of basic salary. The contributions
38 (a). No diluted earning per share is required to be calculated for the period, as there was no scope for
are kept and invested separately from the Company's asset.
dilution during the period under review.
Defined benefit plan-Gratuity
The Company operates an unfunded gratuity scheme. Provision has been made in the financial 2.24 Related party disclosure (BAS- 24)
statements as per approved gratuities scheme. Employees are entitled to gratuity benefit after As per Bangladesh Accounting Standard, parties are considered to be related if one of the parties has the
completion of minimum five years of continued service in the company. The gratuity is calculated on the ability to control the other party or exercise significant influence over the other party in making financial
last basic pay and is payable as per following schedule:

80
Notes to the financial statements - continued Notes to the financial statements - continued

(Figures in BDT)
2009 2008
and operating decisions. The Company carried out transactions in the ordinary course of business on an 3 Cash
arm's length basis at commercial rates with related parties. Related party disclosure is given in Note -40.
3.1 Cash in hand
2.25 Events after balance sheet date In local currency 69,395 153,169
All material events occurring after the balance sheet date are considered and where necessary, adjusted In foreign currency - -
for or disclosed in Note-41. 69,395 153,169
3.2 Balance with Bangladesh Bank and its agent bank(s)
2.26 Proposed dividend With Bangladesh Bank
Proposed dividend has not been recognized as a liability in the balance sheet in accordance with the In local currency 53,033,590 26,032,882
Bangladesh Accounting Standards BAS – 10, “event after balance sheet date”. In foreign currency - -
53,033,590 26,032,882
2.27 Reconciliation of inter-Company account With Sonali Bank Ltd. as agent of Bangladesh Bank - -
Accounts with regard to inter-Company are reconciled regularly and there are no material differences 53,033,590 26,032,882
which may affect the financial statements significantly.
Total 3.1 and 3.2 53,102,985 26,186,051
2.28 Segment reporting 3.3 Statutory deposits
The Company has only one reportable business segment and operation of the Company is within the
Cash Reserve Requirement (CRR) and Statutory Liquidity Reserve (SLR)
geographical territory of Bangladesh. Hence segment reporting in accordance with BAS-14 “Segment
Reporting” is not applicable. Cash Reserve Requirement and Statutory Liquidity Reserve have been calculated and maintained in accordance
with section 19 of the Financial Institutions Act 1993, rule 5 of the Financial Institutions Rules 1994 and FID
circular no.6 dated November 06, 2003.
2.29 Offsetting
Financial assets and financial liabilities are offset and the net amount reported in the balance sheet when The Cash Reserve Requirement on the Company's term deposits received from public @ 2.5% has been
there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on calculated and maintained with Bangladesh Bank in current account and 5% Statutory Liquidity Reserve,
a net basis or realize the asset and settle the liability simultaneously. including CRR, on the total liabilities has been maintained in the form of balance with banks. Both the reserves
maintained by the Company are in excess of the statutory requirements, as shown below:
2.30 Reporting currency a) Cash Reserve Requirement
The financial statements are presented in Bangladeshi Taka which is the Company's functional currency Required reserve (2.5% on term deposit) 49,213,875 23,557,700
except as indicated. Actual reserve maintained 53,033,590 26,032,882
Surplus / (deficit) 3,819,715 2,475,182
2.31 Reclassification b) Statutory Liquidity Reserve
Previous year Figures, wherever considered necessary, have been rearranged/restated/reclassified, for the Required reserve (5% on total liabilities) 153,272,300 106,521,350
purpose of comparison with current year's presentation without any impact on the profit and value of Actual reserve maintained including CRR (note-3.4) 824,164,217 730,950,356
assets and liabilities as reported in the financial statements. Surplus / (deficit) 670,891,917 624,429,006

2.32 Liquidity statement The surplus mostly comprises of deposits maintained with banks kept under lien against overdraft facilities.
The liquidity statement has been prepared considering the remaining maturity period of assets and 3.4 Actual reserve maintained (including CRR)
liabilities as of the close of the year as under: Cash in hand 69,395 153,169
Balance with Bangladesh Bank and its agent bank(s) 53,033,590 26,032,882
l Balance with other banks and financial institutions on the basis of their maturity term Balance with banks and other financial institutions (note - 4) 771,061,232 704,764,305
l Investments are on the basis of their residual maturity term. 824,164,217 730,950,356
l Loans, advances and Leases are on the basis of their repayment/maturity schedule 3(a) Consolidated Cash
l Fixed assets are on the basis of their useful lives Cash in hand
l Other assets are on the basis of their adjustment term International Leasing and Financial Services Limited 69,395 153,169
l Borrowing from Banks and other Financial Institutions are on the basis of their International Leasing Securities Limited 13,581 6,009
maturity/repayment term 82,976 159,178
l Deposits and other accounts are on the basis of their maturity term and behavioral past trends Balance with Bangladesh Bank and its agent bank(s)
l Other liabilities are on the basis of their maturity/settlement term International Leasing and Financial Services Limited 53,033,590 26,032,882
53,033,590 26,032,882
Figures in the financial statements and notes have been rounded off to the nearest taka. 53,116,566 26,192,060

82
Notes to the financial statements - continued Notes to the financial statements - continued

(Figures in BDT) (Figures in BDT)


2009 2008 2009 2008
4 Balance with banks and other financial institutions Fixed deposits (C)
Commercial Bank Ceylon 25,000,000 -
In Bangladesh (note-4.1) 771,061,232 704,764,305 Dhaka Bank Limited 500,000,000 500,000,000
Outside Bangladesh - - First Security Islami Bank Ltd. 50,000,000 101,457,500
771,061,232 704,764,305 One Bank Ltd. 10,512,502 10,000,000
Social Islami Bank Ltd. 100,000,000 -
4.1 In Bangladesh Peoples Leasing and Finance Ltd. - 60,000,000
685,52,502 671,457,500
Current deposits (a)
Bank Asia Ltd. 2,093,420 700,495 Total (a+b+c) 771,061,232 704,764,305
City Bank Ltd. 460,130 578,791 4.2 Maturity grouping of balance with banks and other financial institutions
Commercial Bank of Ceylon - (1,402)
Dhaka Bank Ltd. 2,577,233 1,169,292 On demand 21,659,723 8,377,725
Eastern Bank Ltd. 127,985 129,730 Up to 1 month 413,889,007 324,929,080
EXIM Bank Ltd. 1,051,399 1,054,009 Over 1 month but not more than 3 months 100,000,000 -
First Security Bank Ltd. 119,369 121,419 Over 3 months but not more than 6 months 200,000,000 250,000,000
IFIC Bank Limited 4,250 5,000 Over 6 months but not more than 1 year 35,512,502 121,457,500
Islami Bank Bangladesh Ltd. 253,535 254,150 Over 1 year but not more than 5 years - -
Jamuna Bank Ltd. 304,631 293,934 Over 5 years - -
Mercantile Bank Ltd. 10,019,796 271,852 771,061,232 704,764,305
Mutual Trust Bank Ltd. 110,742 383,331
National Bank Limited 33,254 34,384 4(a) Consolidated balance with banks and other financial institutions
Premier Bank Ltd. 130,630 133,280
Inside Bangladesh
Prime Bank Limited - 8,162
International Leasing and Financial Services Limited 771,061,232 704,764,305
Pubali Bank Ltd. 646,669 596,734
International Leasing Securities Limited 19,679,769 10,407,293
Shahjalal Islami Bank Ltd. 1,668,698 1,700,424
Hong Kong Bangladesh Securities Limited 4,628,709 -
Social Islami Bank Ltd. 3,655 4,150
795,369,710 715,171,598
Sonali Bank Ltd. 343,308 343,965
South East Bank Ltd. 103,007 105,657 Outside Bangladesh
Standard Bank Limited 94,156 95,351 International Leasing and Financial Services Limited - -
Trust Bank Ltd. 388,500 395,016 International Leasing Securities Limited - -
United Commercial Bank Ltd. 1,125,356 - Hong Kong Bangladesh Securities Limited - -
21,659,723 8,377,725 - -

Short-term deposit (b) 795,369,710 715,171,598


AB Bank Ltd. 19,468,919 14,620,463 5 Investments
Bangladesh Commerce Bank Ltd. 44,897 43,665 Investment classified as per nature:
Bank Asia Ltd. 449,091 899,699
Dhaka Bank Ltd. 2,167,264 988,084 Government securities (a)
Dutch Bangla Bank Ltd. 6,331 7,631 Bangladesh Govt. Treasury Bills (note-5.1) 937,760,576 602,391,118
One Bank Ltd. 3,945 4,330 Bangladesh Govt. Treasury Bonds (note-5.2) 599,921,557 1,019,327,160
South East Bank Ltd. 238,721 231,714 1,537,682,133 1,621,718,278
Standard Bank Limited 223,458 227,112 Other investment (b)
Uttara Bank Ltd. 124,339 98,169 Zero coupon bonds - 1,047,751
Bank Alfalah 23,275,161 2,622,241 Shares (note-5.3) 80,961,737 -
Bank Asia Ltd. 17,033,510 4,293,441 80,961,737 1,047,751
City Bank N.A. (1,150) 5,218 Total (a+b)
Jamuna Bank Ltd. 854,520 887,313 1,618,643,870 1,622,766,029
63,889,007 24,929,080

84
Notes to the financial statements - continued Notes to the financial statements - continued

(Figures in BDT) (Figures in BDT)


2009 2008 2009 2008
5.1 Bangladesh Govt. Treasury Bills Other investment (b)

91 days Bangladesh Govt. Treasury Bills 447,462,316 346,732,668 International Leasing and Financial Services Limited 80,961,737 1,047,751
182 days Bangladesh Govt. Treasury Bills - 93,849,365 International Leasing Securities Limited 57,800,000 56,300,000
364 days Bangladesh Govt. Treasury Bills 490,298,260 161,809,085 Hong Kong Bangladesh Securities Limited 97,111,111 -
937,760,576 602,391,118 235,872,848 57,347,751

5.2 Bangladesh Govt. Treasury Bonds Total (a+b) 1,773,554,981 1,679,066,029

5 years Bangladesh Govt. Treasury Bonds 157,023,450 570,527,160 6 Leases, loans and advances
10 years Bangladesh Govt. Treasury Bonds 127,200,000 193,700,000
15 years Bangladesh Govt. Treasury Bonds 149,918,707 168,300,000 6.1 Broad category-wise break up
20 years Bangladesh Govt. Treasury Bonds 165,779,400 86,800,000
599,921,557 1,019,327,160 Inside Bangladesh
5.3 Investment in shares
Leases (note-6.2) 3,870,788,883 3,949,856,669
Quoted Loans (note-6.4) 5,804,758,975 3,453,184,526
Cash credit - -
Aramit Ltd. 3,603,468 - Overdrafts etc. - -
Beximco Ltd. 6,212,508 - 9,675,547,858 7,403,041,196
Beximco Pharma Ltd. 7,527,389 -
Beximco Textile Ltd. 4,207,180 - Outside Bangladesh - -
DESCO 10,259,282 - 9,675,547,858 7,403,041,196
Jamuna Oil Co. Ltd. 6,732,482 - 6.2 Leases
Power Gride Co. Ltd. 9,287,643 -
Sumit Power Ltd. 13,339,526 - Net investment in leases (note - 6.2.1) 3,523,780,249 3,558,556,773
Square Textile Ltd. 5,518,989 - Advances for leases (note -6.2.2) 347,008,634 391,299,897
Titas Gas Ltd. 14,273,270 - 3,870,788,883 3,949,856,669
80,961,737 - 6.2.1 Net investment in leases
Unquoted - -
(Annexure - A may kindly be seen for details) 80,961,737 - Gross lease receivable 4,518,543,790 4,713,817,367
Less: Unearned finance income 994,763,541 1,155,260,594
5.4 Maturity grouping of investments Net lease receivable 3,523,780,249 3,558,556,773

On demand - - Net investment in leases represents gross lease rental receivables from the lessee minus unearned lease
Up to 1 month 80,961,737 1,047,751 income against investment in leases. Investment in leases represents assets leased to the lessees and
Over 1 month but not more than 3 months 447,462,316 346,732,668 accounted for under finance method. The company is the legal owner of the leased assets. Unearned
Over 3 months but not more than 6 months - 93,849,365 lease income is the excess of gross lease rental receivables over the cost of the leased assets. Lease term
Over 6 months but not more than 1 year 490,298,260 161,809,085 of the above leases vary from 24 months to 84 months.
Over 1 year but not more than 5 years 157,023,450 570,527,160
Over 5 years 442,898,107 448,800,000 6.2.2 Advance for leases
1,618,643,870 1,622,766,029 This represents disbursement for procurement of leased assets at balance sheet date. On execution of
5 (a) Consolidated investments leases, advances will be transferred to investment in leases. Advance against leases carry interest as per
terms of the agreement until the advances are executed. The outstanding amount of advance against
leases as of December 31 are shown under following two categories.
Government securities (a)
International Leasing and Financial Services Limited 1,537,682,133 1,621,718,278
Imported equipment 253,610,793 236,614,641
International Leasing Securities Limited - -
Local equipment 93,397,841 154,685,256
Hong Kong Bangladesh Securities Limited - -
347,008,634 391,299,897
1,537,682,133 1,621,718,278

86
Notes to the financial statements - continued Notes to the financial statements - continued

(Figures in BDT) (Figures in BDT)


2009 2008 2009 2008
6.3 Maturity grouping of leases d) Industry-wise leases, loans and advances:
On demand - -
Up to 1 month 68,273,786 68,947,587 Agricultural 1,932,386 -
Over 1 month but not more than 3 months 145,256,398 146,689,947 Textile 1,071,139,013 234,329,905
Over 3 months but not more than 1 year 635,952,341 642,228,615 Garments 268,328,424 1,301,040,795
Over 1 year but not more than 5 years 2,765,573,787 2,833,734,100 Transport and communication 1,262,961,382 1,245,292,174
Over 5 years 255,732,571 258,256,420 Food production/processing industry 424,512,068 547,982,798
3,870,788,883 3,949,856,669 Iron, Steel & Engineering industry 1,997,733,273 570,288,914
6.4 Loans Chemical & Pharmaceutical 611,683,686 473,590,867
Service industry 2,053,467,360 1,660,468,915
Time loan (note-6.4.1) 4,140,601,989 3,212,040,181 Paper, Printing and packaging industry 394,146,561 214,820,733
Work order loan 4,000,000 2,732,850 Telecommunication/information Technology 267,847,360 340,653,414
Home loan (note-6.4.2) 221,910,023 43,875,838 Real Estate & Housing 239,480,512 146,140,899
Short-term loan 1,420,000,000 185,500,000 Ship and Ship making industry - -
Staff loan 18,246,964 9,035,658 Education - -
5,804,758,975 3,453,184,526 Hospital and medical equipment - -
Trade & Commerce - -
6.4.1 This represents amounts advanced to loanee with a specific repayment schedule for an agreed period of Others 1,082,315,833 668,431,781
6 months to 84 months. 9,675,547,858 7,403,041,196

6.4.2 This represents amounts advanced to individuals, corporate bodies, real estate developers for purchase e) Sector-wise leases, loans and advances:
and/or construction of real estate (land, building, apartment, office space) in urban areas with a specific
repayment schedule for an agreed period of 60 months to 240 months. Inside Bangladesh
Government & autonomous bodies - -
6.5 Maturity grouping of loans Financial institutions (private) 157,181,952 40,634,080
Other public sector - -
On demand - - Private sector 9,518,365,906 7,362,407,116
Up to 1 month 1,015,535,188 194,656,005 9,675,547,858 7,403,041,196
Over 1 month but not more than 3 months 414,452,526 246,376,035 Outside Bangladesh - -
Over 3 months but not more than 1 year 699,255,184 823,397,516 9,675,547,858 7,403,041,196
Over 1 year but not more than 5 years 2,601,695,666 1,543,742,869
Over 5 years 1,073,820,411 645,012,101 f) Geographical location-wise lease, loans and advances
5,804,758,975 3,453,184,526
Inside Bangladesh
6.6 Leases, loans and advances on the basis of significant concentration Urban (a)
Dhaka region 8,762,696,536 6,673,746,941
a) Lease, loans and advances to companies or firms Chittagong region 893,407,322 714,725,858
in which the Directors of the Company have interests 110,313,273 105,682,497 Khulna region - -
Rajshahi region 14,940,624 14,249,577
b) Lease, loans and advances to Chief Executive Rangpur region 4,503,376 318,820
and other Senior Executives 14,847,123 6,202,188 Barisal region - -
Sylhet region - -
c) Number of clients with outstanding amount and classified lease, loans and advances exceeding 15% of 9,675,547,858 7,403,041,196
total capital of the the Company is as follows Rural (b) - -
Total (a+b) 9,675,547,858 7,403,041,196
Number of clients 7 8
Outside Bangladesh - -
Amount of outstanding advances 1,202,314,522 1,235,991,673
9,675,547,858 7,403,041,196
Amount of classified advances - -
Measures taken for recovery - -

88
Notes to the financial statements - continued Notes to the financial statements - continued

(Figures in BDT) (Figures in BDT)


2009 2008 2009 2008
6.7 Classification of leases, loans and advances 8 Other assets

Unclassified (a) Inside Bangladesh


Standard 8,592,850,039 6,521,103,854 Income generating (a)
Special mention account (SMA) 626,660,403 451,801,643 Investment in Subsidiary (note-8.1 ) 79,999,700 79,999,700
9,219,510,442 6,972,905,497 Income receivable (note-8.2) 435,767,546 422,964,668
Classified (b) 515,767,246 502,964,368
Sub-standard 376,047,826 354,457,270 Non-income generating (b)
Doubtful 62,229,470 51,153,476 Receivable from Subsidiary (note-8.3) 12,627,870 7,385,021
Bad / Loss 17,760,121 24,524,954 Advance, deposit and Prepaid expenses (note-8.4) 108,900,615 9,126,957
456,037,417 430,135,699 Receivable against terminated lease/loan
Other receivables (note-8.5) 536,694,072 531,632,346
Total (a+b) 9,675,547,858 7,403,041,196 Branch adjustments account
Advance corporate tax (note -8.6) 52,417,614 46,712,569
6(a) Consolidated leases, loans and advances Deferred expense (note- 8.7) 1,206,560 2,413,119
Broad category-wise break up Deferred tax assets (note- 8.8) 3,515,865 3,488,524
Inside Bangladesh 715,362,595 600,758,537

International Leasing and Financial Services Limited Total (a+b) 1,231,129,842 1,103,722,905
Leases 3,870,788,883 3,949,856,669 Outside Bangladesh - -
Loans 4,694,758,975 3,267,684,526 1,231,129,842 1,103,722,905
Cash credit - -
Overdrafts etc. - - 8.1 Investment in subsidiary
8,565,547,858 7,217,541,196
International Leasing Securities Limited 1,156,612,094 193,016,652 Share capital (note- 8.1.1) 59,999,700 59,999,700
Hong Kong Bangladesh Securities Limited - - Share money deposit 20,000,000 20,000,000
9,722,159,952 7,410,557,848 79,999,700 79,999,700
Outside Bangladesh - -
9,722,159,952 7,410,557,848 8.1.1 This represents 599,997 nos. of ordinary shares of International Leasing Securities Limited subscribed by
7 Fixed assets including premises, furniture & fixtures International Leasing And Financial Services Limited out of their 600,000 nos. of shares of Tk. 100 each.
Motor vehicles 10,051,952 5,230,222
Motor vehicles - leasehold 2,500,000 - 8.2 Income receivable
Office decoration 10,841,018 10,353,793 Interest receivables (a)
Office equipment 6,768,610 6,520,461 Interest receivables - leases 149,829,599 151,572,816
Furniture & fixtures 3,668,321 3,131,129 Interest receivables - advance against leases 104,060,692 138,156,558
33,829,901 25,235,605 Interest receivables - time loan 127,124,334 96,650,966
Less: Accumulated depreciation 19,420,900 17,633,176 Interest receivables - work order 438,948 1,927,458
Net book value at the end of the year (See annexure-B for detail) 14,409,001 7,602,429 Interest receivables - home loan 1,317,364 518,200
Interest receivables - factoring 808,170 808,170
Interest receivables - FDR/short-term loan 5,354,654 5,572,835
7(a) Consolidated Fixed assets including premises furniture & fixtures
Coupon receivables - treasury bond 9,450,274 18,288,299
Motor vehicles 12,598,608 6,438,430
Interest on loan to International Leasing Securities Ltd. 35,094,761 6,493,926
Motor vehicles - leasehold 2,500,000 -
Interest receivables - asset backed zero coupon bonds - 24,190
Office decoration 19,641,599 18,593,935
433,478,796 420,013,418
Office equipment 11,419,294 9,835,373
Fees, commission and brokerage receivables (b)
Furniture & fixtures 5,098,900 3,837,463
Underwriting commission receivables - bills/bonds 2,288,750 2,951,250
51,258,401 38,705,201
2,288,750 2,951,250
Less: Accumulated depreciation 24,633,061 19,879,771
Net book value at the end of the year (See annexure-B(a) for detail) 26,625,340 18,825,430
Total (a+b) 435,767,546 422,964,668

90
Notes to the financial statements - continued Notes to the financial statements - continued

(Figures in BDT) (Figures in BDT)


2009 2008 2009 2008
8.3 Receivable from Subsidiary 8.8 Deferred tax assets
Deferred tax liability/assets is recorded under liability method as required by BAS- 12; "Income Tax" in order to
Receivables for furniture and fixtures 42,813 42,813 allocate the charge of tax to each year relating to that year, taking into account the taxable temporary
Receivables for motor vehicle 1,208,208 1,208,208 differences and deductible temporary differences arising out of carrying amount of assets and liabilities and
Receivables related to HBSL 4,827,906 - their tax base. The change in deferred tax assets is shown below:
Receivables for Chittagong branch 414,943 -
Sale proceeds of marketable securities 6,134,000 6,134,000 Balance as at 1st January 3,488,524 -
12,627,870 7,385,021 Addition during the year 27,341 3,488,524

8.4 Advance, deposit and prepaid expenses Balance as at December 31 3,515,865 3,488,524

Advances for software development (note- 8.4.1) 6,666,414 5,283,431 8.9 Maturity grouping of other assets
Deposit for telephone/CDBL 339,500 339,500
Advance for investment in share 98,961,846 (7,174) On demand - -
Advance office rent CTG branch (note- 8.4.2) 2,772,000 3,511,200 Up to 1 month - -
Advance for legal expenses 160,855 - Over 1 month but not more than 3 months 448,395,417 430,349,689
108,900,615 9,126,957 Over 3 months but not more than 1 year 645,594,687 540,759,304
Over 1 year but not more than 5 years 57,140,039 52,614,212
8.4.1 This represents advance for development of leasing software currently under development stage by Over 5 years 79,999,700 79,999,700
software vendor. On completion and implementation of the software the total cost will be capitalized 1,231,129,842 1,103,722,905
and amortized with approval of the Board as per applicable standards.
8(a) Other assets
8.4.2 The amount represents advance against office rent of Chittagong Branch which will be adjusted with
50% of each month's rent upto September 2014 as per agreement with the land lord. Inside Bangladesh
Income generating (a)
8.5 Other receivables International Leasing and Financial services Limited 400,672,785 416,470,742
400,672,785 416,470,742
Other receivables - leases 294,363,895 317,671,603 Non-income generating (b)
Other receivables - time loan 235,592,928 193,825,342 International Leasing and Financial services Limited 702,734,725 593,373,516
Other receivables - work order 3,869,729 16,992,307 International Leasing Securities Limited 133,401,218 19,937,800
Other receivables - home loan 323,241 127,150 Hong Kong Bangladesh Securities Limited 360,241 -
Receivables - factoring 2,500,000 2,500,000 836,496,184 613,311,316
Others 44,279 515,944
536,694,072 531,632,346 Total (a+b) 1,237,168,970 1,029,782,058
Outside Bangladesh - -
Other receivables represents principal portion of overdue rental and other lump sum receivables from customer 1,237,168,970 1,029,782,058
against leases, loans and other advances. 9 Borrowing from banks, other financial institutions and agents

8.6 Advance corporate tax Inside Bangladesh (note-9.1)


Bank overdraft (note- 9.1.1) 23,781,609 315,770,885
Balance as on January 01 46,712,569 35,169,960 Call borrowing (note- 9.1.2) 380,000,000 100,000,000
Paid during the year 14,788,324 11,542,609 REPO liability (note- 9.1.3) 1,450,000,000 1,575,000,000
Settlement of previous years' tax liabilities 9,083,279 - Short term loan (note-9.1.4) 340,000,000 620,000,000
Balance as on December 31 52,417,614 46,712,569 Long term loan (note-9.1.5) 2,125,372,364 2,149,666,401
Loan for refinancing (note-9.1.6) 104,318,038 109,545,235
8.7 Deferred expense 2,413,119 2,413,119 4,423,472,011 4,869,982,521
Outside Bangladesh - -
Less: amortization of deferred expenses 1,206,560 - 4,423,472,011 4,869,982,521
1,206,560 2,413,119

92
Notes to the financial statements - continued Notes to the financial statements - continued

(Figures in BDT) (Figures in BDT)


2009 2008 2009 2008
9.1 Inside Bangladesh Jamuna Bank Ltd. - 31,958,732
Mercantile Bank Ltd. 113,710,444 112,592,247
9.1.1 Bank overdraft Mutual Trust Bank Ltd. 147,263,516 86,588,015
National Bank Ltd. 210,872,906 144,151,222
BRAC Bank Ltd. 14,209,348 92,191,233 National Credit and Commerce Bank Ltd. - 10,012,052
First Security Bank Ltd. - 94,382,119 One Bank Ltd. 81,246,559 -
One Bank Ltd. (3,415,408) 49,893,572 Prime Bank Ltd. 122,389,561 219,141,866
Shahjalal Islami Bank Ltd. - 30,000,000 Pubali Bank Ltd. 97,445,973 167,576,382
Commercial Bank of Ceylon 12,987,669 - Shahjalal Islami Bank Ltd. 87,356,480 63,780,472
United Commercial Bank Ltd. - 49,303,961 Social Investment Bank Ltd. 46,909,932 80,060,088
23,781,609 315,770,885 Sonali Bank 94,736,000 -
9.1.2 Call borrowing Southeast Bank Ltd. 44,112,848 -
Standard Bank Ltd. 71,234,999 128,615,481
Bangladesh Commerce Bank Ltd. - 70,000,000 Trust Bank Ltd. 114,440,796 103,761,167
Basic Bank Ltd. 40,000,000 - United Commercial Bank Ltd. 90,586,278 133,828,989
Premier Bank Ltd. 130,000,000 - Uttara Bank Ltd. 275,690,294 261,678,115
Sonali Bank Ltd. 80,000,000 - 2,125,372,364 2,149,666,401
Trust Bank Limited 130,000,000 20,000,000
United Leasing - 10,000,000 9.1.6 Loan for refinancing
380,000,000 100,000,000
9.1.3 REPO liability Loan from Bangladesh for SME financing 30,072,463 50,135,753
Loan from Bangladesh Bank for housing financing 31,786,209 14,280,000
Bangladesh bank - 1,575,000,000 Loan from RPGCL for DCFP financing (note- 9.1.6.1) 42,459,366 45,129,482
Agrani Bank Limited 1,450,000,000 - 104,318,038 109,545,235
1,450,000,000 1,575,000,000
9.1.4 Short term loan 9.1.6.1 The above fund has been received from Rupantarita Prakritik Gas Company Limited (RPGCL) under
Dhaka Clean Fuel Project for financing of environment friendly projects like CNG Filling Station, CNG
Eastern Bank Ltd. - 100,000,000 driven buses etc. The interest @ 5.5% of the fund are paid quarterly and the principal repayment was
IFIC Bank Ltd. - 200,000,000 started from 2009 for a period of 10 years ending in 2017. The maximum relending rate is 9% p.a.
IPDC of Bangladesh Ltd. - 100,000,000
Mercantile Bank Ltd. - 100,000,000 9.2 Security wise grouping of borrowing from banks, other financial institutions and agents
Mutual Trust Bank Ltd. 200,000,000 -
Premier Leasing & Finance Ltd. - 40,000,000 Secured 3,641,613,339 4,085,566,768
The City Bank Ltd. 140,000,000 60,000,000 Unsecured 781,858,672 784,415,753
United Leasing Company Ltd. - 20,000,000 4,423,472,011 4,869,982,521
340,000,000 620,000,000
9.1.5 Long term loan The company avail a large amount of it's required fund from various banks and financial institutions. The loans
are secured by first fixed and floating charges on all present and future movable and immovable properties of
the company registered with RJSC ranking pari-passu among the lenders.
Bank Alfalah Ltd. 39,144,107 60,141,652
Bank Asia Ltd. 33,714,474 79,937,649
9.3 Maturity grouping of borrowing from banks, other financial institutions and agents
BASIC Bank Ltd. 51,711,101 84,341,088
BRAC Bank Ltd. 139,537,475 69,843,168
On demand 403,781,609 415,770,885
The City Bank Ltd. 145,659,976 58,709,918
Up to 1 month 1,698,494,459 1,933,273,511
Commercial Bank of Ceylon 25,000,003 58,333,335
Over 1 month but within 3 months 306,270,679 471,966,544
Dhaka Bank Ltd. 52,801,881 96,372,666
Over 3 months but within 1 year 630,149,228 699,105,060
Exim Bank Ltd. 39,806,762 -
Over 1 year but within 5 years 1,360,824,853 1,338,900,411
First Security Islami Bank Ltd. - 97,808,148
Over 5 years 23,951,183 10,966,109
Fareast Finance & Investment Limited - 433,948
4,423,472,011 4,869,982,521

94
Notes to the financial statements - continued Notes to the financial statements - continued

(Figures in BDT) (Figures in BDT)


2009 2008 2009 2008
10 Deposits and other accounts Non-interest bearing security deposits
Leases 117,446,764 131,506,006
Current deposits - - Time loans 71,754,479 56,923,674
Bills payable - - Home loans 2,036,390 -
Savings bank deposits - - Work order loans 591,127 1,951,127
Term deposits (note - 10.1) 6,968,222,770 4,317,348,729 191,828,760 190,380,807
Bearer certificates of deposit - - Interest bearing security deposits 14,865,520 10,361,001
Other deposits (note- 10.2) 206,694,280 200,741,808 206,694,280 200,741,808
7,174,917,050 4,518,090,537
10.2.1 Maturity analysis of other deposits
10.1 Term deposits
These represent deposits from individuals and institutions under the Company's term deposit schemes for a Payable on demand - -
period of not less than six months for institutions and one year for individuals. Break up of term deposit as per Up to 1 month 7,348,601 7,136,972
nature of institution is given below: Over 1 month but within 3 months 327,250 317,826
Over 3 months but within 1 year 7,459,890 7,245,057
Deposits from banks and financial institutions 4,671,300,000 2,729,092,500 Over 1 year but within 5 years 161,495,706 156,844,882
Deposits from other than banks and financial institutions 2,296,922,770 1,588,256,229 Over 5 years but within 10 years 30,062,833 29,197,071
6,968,222,770 4,317,348,729 Over 10 years - -
206,694,280 200,741,808
10.1.1 Maturity analysis of term deposits
11 Other liabilities
Deposits from banks and financial institutions (a)
Deferred liability-employees' gratuity (note- 11.1) 3,275,810 2,164,060
Payable on demand - - Training fund (note-11.2) 181,271 181,271
Up to 1 month 620,000,000 450,000,000 Un-claimed refund warrant/dividend (note- 11.3) 2,799,693 2,092,923
Over 1 month but within 3 months 700,000,000 670,000,000 Interest suspense account (note-11.4) 112,720,120 68,175,909
Over 3 months but within 1 year 3,351,300,000 1,609,092,500 Advance lease rental & other payables (note-11.5) 87,668,001 21,891,490
Over 1 year but within 5 years - - Payables & accrued expenses (note-11.6) 290,839,109 244,080,500
Over 5 years but within 10 years - - Liability under finance lease 2,300,885 -
Over 10 years - - Provision for lease, loans and advances (note - 11.7) 347,245,440 300,849,244
4,671,300,000 2,729,092,500 Provision for investment 2,754,560 -
Provision for income tax (note- 11.8) 101,139,672 85,000,000
Deposits from other than banks and financial institutions (b) 950,924,560 724,435,397

Payable on demand - - 11.1 Deferred liability-employees' gratuity


Up to 1 month 85,761,108 37,620,000
Over 1 month but within 3 months 298,942,562 266,334,056 Balance as at 1st January 2,164,060 1,458,539
Over 3 months but within 1 year 1,001,764,368 927,091,023 Add: provision made during the year 1,111,750 705,521
Over 1 year but within 5 years 903,492,475 357,211,150 Less: payment made during the year - -
Over 5 years but within 10 years 6,962,257 - Balance as at December 31 3,275,810 2,164,060
Over 10 years - -
2,296,922,770 1,588,256,229 11.2 Training Fund represents administration cost received from Royal Danish Embassy for operation of private
sector development project funded by DANIDA. As per agreement, such cost incurred by ILFSL & received from
Total (a+b) 6,968,222,770 4,317,348,729 DANIDA can only be spent for the purpose of employees' training.

10.2 Other deposits 11.3 Un-claimed refund warrant/dividend


This represents deposits received against lease loans and advances on signing of the agreement which are Un-claimed refund warrant 1,197,090 1,230,825
subject to repayment/adjustment on expiry of the agreement. The company receives security deposits under Un-claimed dividend 1,602,603 862,098
two categories of non-interest bearing and interest bearing security deposit. Details are shown below: 2,799,693 2,092,923

96
Notes to the financial statements - continued Notes to the financial statements - continued

(Figures in BDT) (Figures in BDT)


2009 2008 2009 2008
The amounts represents refund warrant issued to the unsuccessful investors and dividend warrant issued to Other payables (b)
the shareholders which ware not presented to the bank within December 31, 2009. It is anticipated that it will Payable for fractional bonus share 363,497 1,089
take some more time to liquidate this liability fully. Payable for Tax/VAT deducted at source 362,735 256,307
Liability for expenses & other payables 453,039 452,399
11.4 Interest suspense account Advance for Private Sector Development (PSD) program (note- 11.6.2) 31,692,740 28,399,058
32,872,011 29,108,854
Balance as at 1st January 68,175,909 91,761,634
Add: suspended during the year 311,022,472 248,835,013 Total (a+b) 290,839,109 244,080,500
Less: realized during the year 266,478,262 272,420,737
Balance as at December 31 112,720,120 68,175,909 11.6.1 Interest on loans for refinancing

Lease income earned and income from loans, overdue for three months (or equivalent, i.e. 90 days) or more for Loan from Bangladesh for SME financing 263,867 1,102,604
leases/loans up to 5 years tenure and for six months (or equivalent, i.e. 180 days) or more for leases/loans of Loan from Bangladesh Bank for housing financing 687,298 -
more than 5 years tenure is not recognized as revenue and credited to interest suspense account. Suspended
Loan from RPGCL for DCFP financing 130,553 275,000
interests are recognized as revenue and credited in profit and loss account on realization basis. Product wise
amount of suspended interest as on December 31are given below: 1,081,718 1,377,604

Leases 79,332,953 49,331,272 11.6.2 This represents rental received on monthly basis from the clients financed under PSD program funded by
DANIDA which is refundable to the Royal Danish Embassy on quarterly basis.
Loans 33,387,167 18,844,637
112,720,120 68,175,909
11.7 Provision for leases, loans and advances
11.5 Advance lease rental & other payables
Specific provision on classified leases, loans and advances (a)
Balance at January 01 213,137,100 165,381,700
Receipt against leases 37,486,351 9,744,113
Fully provided debts written off during the year - -
Receipt against time loans 34,321,617 2,683,826
Recovery of amounts previously written off - -
Receipt against work order loans 622,172 492,172
Provision made for the year - 47,755,400
Receipt against real estate home loans 46,764 25,344
Recoveries and provision no longer required (2,912,300) -
Receipt against bank guarantee 495,873 -
Net charge to Profit and Loss Account - -
Other payables to lessee/loanee 14,695,223 8,946,036
210,224,800 213,137,100
87,668,001 21,891,490
General provision on unclassified lease, loans and advances (b)
Receipts against leases, time loans, work order loans and home loans represent money received on a lump sum
basis whether due or not and rental receipts against syndication finance which are subsequently Balance at January 01 87,712,144 79,618,300
adjustable/refundable on due basis. Provision made for the year 49,308,496 8,093,844
137,020,640 87,712,144
11.6 Payables & accrued expenses
Total (a+b) 347,245,440 300,849,244
Interest payables (a)
Interest on overdraft & others 1,699,557 725,000 Provision for classified and un-classified leases, loans and advances has been made on the basis of analysis of
Interest on call loans 581,250 2,390,972 portfolio made by the Management of the Company as per FID Circular # 08 of 2002 as ammended from time to
Interest payable- REPO, bills/bonds 179,258 378,606 time by the Department of Financial Institutions and Markets (DFIM) of Bangladesh Bank. As per FICL submitted
to Bangladesh Bank the required provision as per calculation made under FID Circular was Tk. 32.12 crore and
Interest on short-term loans 2,486,389 7,347,778
actual provision in the books of accounts under this head has been kept at Tk. 34.72 but further provision of Tk.
Interest on long-term loans 2,939,914 16,640,606 4.91 crore could have been made against few accounts as a matter of prudence to meet future losses.
Interest on loans for refinancing (note-11.6.1) 1,081,718 1,377,604
Interest on deposits from banks and FIs 128,117,414 93,950,332 11.8 Provision for income tax
interest on deposits from other than banks and FIs 120,881,598 92,160,749 Balance as on January 01 85,000,000 70,000,000
257,967,098 214,971,646 Add: provision made during the year 35,000,000 15,000,000
Less: settlement of previous years tax liability 18,860,328 -
101,139,672 85,000,000

98
Notes to the financial statements - continued Notes to the financial statements - continued

(Figures in BDT)
2009 2008
11.9 Maturity analysis of other liabilities
General shareholders 929,029 31.93 92,902,900
Payable on demand - - PHP Float Glass Industries Ltd. 274,275 9.43 27,427,500
Up to 1 month - - Institutions/corporate 358,791 12.33 35,879,100
Over 1 month but within 3 months - - Individual 289,008 9.93 28,900,800
Over 3 months but within 1 year 493,981,790 334,147,899 Non-resident Bangladeshi 6,955 0.24 695,500
Over 1 year but within 5 years 456,942,771 390,287,498 Total 2,909,500 100.00 290,950,000
Over 5 years but within 10 years - -
Over 10 years - - The detail history of raising of share capital of the company is given below:
950,924,560 724,435,397
Addition in Cummulative
11 (a) Consolidated other liabilities No. of Amount of No. of Amount of
Date Particulars shares paid-up capital shares paid-up capital
International Leasing and Financial Services Limited 950,924,560 724,435,397
International Leasing Securities Limited 15-Jan-96 As per MOA & AOA 7 700 7 700
Payable to customer 120,001,725 6,817,184 17-Mar-96 Allotted for cash 10,000 1,000,000 10,007 1,000,700
Payable to Dhaka Stock Exchange Ltd. 185,973 2,504,111 24-Nov-96 Allotted for cash 589,993 58,999,300 600,000 60,000,000
Other liabilities 14,067,114 522,133 22-Sep-98 Bonus Shares 90,000 9,000,000 690,000 69,000,000
134,254,812 9,843,428 22-Jun-99 Bonus Shares 138,000 13,800,000 828,000 82,800,000
Hong Kong Bangladesh Securities Limited 46,125 - 29-May-03 Bonus Shares 107,640 10,764,000 935,640 93,564,000
1,085,225,497 734,278,825 16-Jun-04 Bonus Shares 327,474 32,747,400 1,263,114 126,311,400
12-Jun-05 Bonus Shares 315,778 31,577,800 1,578,892 157,889,200
12 Share capital 05-Jul-06 Bonus Shares 221,108 22,110,800 1,800,000 180,000,000
02-Sep-07 IPO shares 500,000 50,000,000 2,300,000 230,000,000
12.1 Authorized 25-May-08 Bonus Shares 230,000 23,000,000 2,530,000 253,000,000
3,000,000 nos. of ordinary shares of taka 100 each 300,000,000 300,000,000 31-May-09 Bonus Shares 379,500 37,950,000 2,909,500 290,950,000
Total 2,909,500 290,950,000
12.2 Issued, subscribed & paid up 290,950,000 253,000,000
Classification of shareholders by holding as of December 31, 2009 as required by regulation 37 of the
2,909,500 nos. of ordinary shares including 1,809,500 bonus shares of taka 100 each ( in 2008, 2,530,000 nos. of listing Regulations of Dhaka Stock Exchange Limited is stated below:
ordinary shares of taka 100 each.). During the year 2009 the Company issued 379,500 ordinary shares of Tk. 100
each as bonus share. Number of Number of shares Percentage
Number of shares shareholders held shareholding
Composition of shareholdings
Less than 500 2,483 132,987 4.57
Particulars No. of shares % of holding Amount 501 to 5,000 113 178,091 6.12
5,001 to 10,000 10 69,609 2.39
Sponsor shareholders 1,980,471 68.07 198,047,100 10,001 to 20,000 7 99,658 3.42
20,001 to 30,000 3 62,744 2.16
a) Corporate 1,616,900 55.57 161,690,000 30,001 to 40,000 - - -
Singer Bangladesh Limited 1,035,000 35.57 103,500,000 40,001 to 50,000 1 48,500 1.67
Shaw Wallace Bangladesh Limited 581,900 20.00 58,190,000 50,001 to 100,000 5 426,736 14.67
100,001 to 500,000 1 274,275 9.43
b) Individual 363,571 12.5 36,357,100 More than 500,000 2 1,616,900 55.57
Mrs. Rosy Ahmad 99,362 3.42 9,936,200 Total 2,625 2,909,500 100.00
Mrs. Zohra Islam 87,950 3.02 8,795,000
Mr. Jamal Uddin Ahmad 96,196 3.31 9,619,600 The shares were listed in Dhaka Stock Exchange Limited and Chittagong Stock Exchange Limited on September
Mr. M Matiul Islam 75,900 2.61 7,590,000 16, 2007 and traded at Tk. 1,261.5 each at Dhaka Stock Exchange Limited and Tk. 1,300.00 each at Chittagong
Mr. Mahbub Jamil 4,163 0.14 416,300 Stock Exchange Limited at the end of the year 2009.

100
Notes to the financial statements - continued Notes to the financial statements - continued

(Figures in BDT) (Figures in BDT)


2009 2008 2009 2008
12.3 Capital adequacy ratio 16 Minority interest
The company as a financial institution is subject to minimum paid up capital requirement as stipulated in DFIM
Circular no. 09, dated 04.11.2009 about paid-up capital financial institutions. As per the requirement, an FI is Share capital 3,363 300
required to have a minimum paid up capital of Tk. 500 million within December 31, 2010. The required capital Retained earnings 549 8
for 2008 was 250,000,000 Balance as at 1st January 8 -
Profit for the year 541 8
Paid up capital (note-12.2) 290,950,000 253,000,000
Add: proposed bonus share for the year 218,212,500 37,950,000 Balance as at December 31 3,912 308
509,162,500 290,950,000
Minimum required paid up capital 500,000,000 250,000,000
17 Net asset value per share
Excess in paid up capital 9,162,500 40,950,000
Total assets 13,363,894,788 10,868,082,915
13 Share premium 62,500,000 62,500,000 Total liabilities 12,549,313,621 10,112,508,455
Net asset 814,581,167 755,574,460
This amount of Tk. 62,500,000 represents the share premium for 500,000 nos. of shares @ Tk.125 per share received
against IPO in 2007 and available for utilization as per relevant rules and regulations.
Number of share outstanding 2,909,500 2,530,000
14 Statutory reserve
Net asset value per share 279.97 298.65
Balance as at January 01 166,636,000 143,936,000
17(a)Consolidated net asset value per share
Addition during the year 19,500,000 22,700,000
Balance as at December 31 186,136,000 166,636,000
Total assets 13,607,995,519 10,879,595,023
Total liabilities 12,683,614,558 10,122,351,883
As per section 9 of the Financial Institutions Act, 1993 and regulation 6 of the Financial Institutions Regulations 1994,
statutory reserve has to keep at least 20% of profit for the year and to be continued to build up at this rate, till the Net asset 924,380,961 757,243,140
reserve equates the paid up capital of the company unless otherwise advised. As per this regulatory requirement the
company has to transfer Tk. 19,391,341 to Statutory Reserve Fund for the year 2009. During the year the Company Number of share outstanding 2,909,500 2,530,000
has transferred Tk. 19,500,000 to the Statutory Reserve Fund from current year's profit.
Net asset value per share 317.71 299.31
15 Retained earnings/surplus
18 Contingent liabilities
Balance as at 1st January 273,438,460 253,755,660
Less: cash dividend for last year 37,950,000 46,000,000 18.1 Letters of guarantee
Less: issue of bonus share for last year 37,950,000 23,000,000
197,538,460 184,755,660 Letters of guarantee (local) 106,086,901 170,118,886
Surplus in profit and loss account 77,456,707 88,682,801 Letters of guarantee (foreign) - -
274,995,167 273,438,460 Counter guarantees 77,616,821 36,104,296
183,703,722 206,223,183
15(a) Consolidated retained earnings/surplus
Letter of guarantee/counter guarantee represents guarantee issued in favour of Bank on behalf of customer of
Balance as at 1st January 275,106,832 253,755,660 the Company. Out of the amounts for 2009, Tk. 87,001,901 has been subsequently released.
Less: cash dividend for last year 37,950,000 46,000,000
Less: issue of bonus share for last year 37,950,000 23,000,000 Money for which the Company is contingently liable in respect of guarantees given favoring:
199,206,832 184,755,660
Surplus in profit and loss account 185,584,216 90,351,173 Directors or officers - -
384,791,049 275,106,832 Government - -
Banks and other financial institutions 183,703,722 206,223,183
Others - -
183,703,722 206,223,183

102
Notes to the financial statements - continued Notes to the financial statements - continued

(Figures in BDT) (Figures in BDT)


2009 2008 2009 2008
19 Profit and loss account 20 Interest income
Interest income- Lease 514,965,682 620,235,926
Income (a) Interest income- time loan 524,645,975 442,376,042
Interest, discount and similar income (note-19.1) 1,419,221,807 1,236,322,517 Interest income- work order loan 1,600,613 6,565,834
Dividend income 1,690,250 558,925 Interest income- home loan 18,107,634 3,615,406
Fees, commission and brokerage (note- 23) 7,867,231 11,104,644 Interest income- short term loan 92,364,755 10,722,619
Gains less losses arising from dealing in securities - - Interest income- staff loan 1,064,380 1,108,301
Gains less losses arising from investment securities - - Interest income from zero coupon bond 507 85,325
Gains less losses arising from dealing in foreign currencies - - Coupon income - government treasury bonds 81,499,875 67,976,044
Income from non-Company assets - - Interest on fixed deposit with banks 87,392,370 63,586,224
Other operating income (note- 24) 2,521,188 1,122,596 Interest on balance with banks 2,895,063 1,149,001
Profit less losses on interest rate changes - - 1,324,536,854 1,217,420,722
1,431,300,476 1,249,108,682 20(a)Consolidated interest income
Expenses (b)
Interest, fee and commission, etc. (note- 21) 1,197,050,787 1,030,978,041 International Leasing and Financial Services Limited 1,324,536,854 1,217,420,722
Losses on loans and advances - - International Leasing Securities Limited 109,678,615 8,145,772
Administrative expenses (note-19.2) 41,488,495 31,624,939 1,434,215,469 1,225,566,494
Other operating expenses 6,693,362 5,000,154 21 Interest paid on deposits, borrowings, etc.
Depreciation/amortization on assets 4,987,710 2,762,027
1,250,220,354 1,070,365,161 Interest paid on deposits (a)
Interest on term deposit, bank and financial institutions 473,955,693 304,969,816
Total Profit before provisions (a-b) 181,080,122 178,743,521 Interest on term deposit, other than bank and financial institutions 255,944,929 165,701,274
Direct deposit expenses 22,581,252 29,914,848
19.1 Interest, discount and similar income Interest bearing security deposits 1,751,217 609,525
Interest income- Lease 514,965,682 620,235,926 754,233,091 501,195,463
Interest income- time loan 524,645,975 442,376,042 Interest paid on borrowing (b)
Interest income- work order loan 1,600,613 6,565,834 Interest on call loan 36,193,833 59,793,468
Interest income- home loan 18,107,634 3,615,406 Interest on short-term loan 37,555,070 32,775,441
Interest income- short term loan 92,364,755 10,722,619 Interest on long-term loan 301,504,983 332,824,432
Interest income- staff loan 1,064,380 1,108,301 Interest on loan for refinancing 5,383,023 5,306,111
Interest income- deposit with banks/FIs 90,287,433 64,735,225 Interest on bank overdraft 8,830,047 22,442,654
Interest income from zero coupon bond 507 85,325 Interest expense, REPO bills/bonds 53,206,255 76,640,472
Coupon income - government treasury bonds 81,499,875 67,976,044 Finance charge for obligation under finance lease 144,485 -
Discount income- bills/bonds 13,856,763 22,110,636 442,817,696 529,782,578
Gain from bills/bonds 36,560,899 2,259,372
Gain/(loss) on sale of shares 44,267,291 (5,468,213) Total (a+b) 1,197,050,787 1,030,978,041
1,419,221,807 1,236,322,517
19.2 Administrative expenses 21 (a) Consolidated Interest paid on deposits, borrowings, etc.

Salary and allowances 25,905,952 18,531,432 Interest paid on deposits (a)


Rent, taxes, insurance & electricity 4,921,661 4,123,128 International Leasing and Financial Services Limited 754,233,091 501,195,463
Legal expenses 1,222,796 1,105,822 International Leasing Securities Limited - -
Postage, stamp & telecommunication 1,039,694 1,085,745 754,233,091 501,195,463
Stationery, printing & advertisement 3,050,817 2,660,487 Interest paid on borrowing (b)
Managing Director's salary and benefits 2,792,000 2,792,000 International Leasing and Financial Services Limited 442,817,696 529,782,578
Directors' fees 705,306 390,598 International Leasing Securities Limited 88,677,029 6,416,122
Auditors' fees 104,500 104,500 531,494,725 536,198,700
Repair of the Company's assets 1,745,768 831,228
41,488,495 31,624,939 Total (a+b) 1,285,727,816 1,037,394,163

104
Notes to the financial statements - continued Notes to the financial statements - continued

(Figures in BDT) (Figures in BDT)


2009 2008 2009 2008
22 Investment income 26 Rent, taxes, insurance & electricity

Dividend income 1,690,250 558,925 Rent, rate and taxes 4,043,179 3,088,774
Discount income- bills/bonds 13,856,763 22,110,636 Insurance 211,256 231,991
Gain from bills/bonds 36,560,899 2,259,372 Electricity, gas and water 667,226 802,363
Gain/(loss) on sale of shares 44,267,291 (5,468,213) 4,921,661 4,123,128
96,375,203 19,460,720
26 (a) Consolidated rent, taxes, insurance & electricity
23 Commission, fees, exchange and brokerage
International Leasing and Financial Services Limited 4,921,661 4,123,128
Underwriting Commission - government treasury bonds & bills 4,378,500 7,864,350 International Leasing Securities Limited 5,640,518 1,704,386
Processing fees- leases 618,132 906,391 10,562,179 5,827,514
Processing fees- time loan 1,011,196 743,013
Processing fees- work order 10,000 104,550 27 Legal expenses
Processing fees- home loan 1,327,683 637,504
Guarantee commission 521,720 848,836 Legal expenses 1,118,296 699,822
7,867,231 11,104,644 Other professional charges 104,500 406,000
1,222,796 1,105,822
23 (a) Consolidated commission, fees, exchange and brokerage
27 (a) Consolidated legal expenses
International Leasing and Financial Services Limited 7,867,231 11,104,644
International Leasing Securities Limited 129,819,080 7,047,404 International Leasing and Financial Services Limited 1,222,796 1,105,822
137,686,311 18,152,048 International Leasing Securities Limited 41,688 -
1,264,484 1,105,822
Consolidated fees, commission and brokerage from International Leasing Securities Limited represents net
brokerage income 28 Postage, stamp & telecommunication

24 Other operating income Postage, stamp, internet 392,950 456,567


Telephone 646,744 629,178
Gain on sale of leased assets 1,427,168 1,093,332 1,039,694 1,085,745
Gain on sale of fixed assets 1,000,462 -
Miscellaneous income 93,558 29,264 28 (a) Consolidated postage, stamp & telecommunication
2,521,188 1,122,596
24 (a) Consolidated other operating income International Leasing and Financial Services Limited 1,039,694 1,085,745
International Leasing Securities Limited 692,062 226,355
International Leasing and Financial Services Limited 2,521,188 1,122,596 1,731,756 1,312,100
International Leasing Securities Limited 1,107,330 (106,619)
3,628,518 1,015,977 29 Stationery, printing and advertisements
25 Salary and allowances
Printing and stationery 1,750,632 2,005,733
Basic salary and other allowances 23,599,133 17,038,261 Publicity and advertisement 1,300,185 654,754
Company's contribution to provident fund 1,195,069 787,650 3,050,817 2,660,487
Gratuity 1,111,750 705,521
25,905,952 18,531,432 29 (a) Consolidated stationery, printing and advertisements
25 (a) Consolidated salary and allowances
International Leasing and Financial Services Limited 3,050,817 2,660,487
International Leasing and Financial Services Limited 25,905,952 18,531,432
International Leasing Securities Limited 950,211 783,328
International Leasing Securities Limited 9,568,549 2,447,781
4,001,028 3,443,815
35,474,501 20,979,213

106
Notes to the financial statements - continued Notes to the financial statements - continued

(Figures in BDT) (Figures in BDT)


2009 2008 2009 2008
30 Managing Director's salary and benefits 33 (a) Consolidated depreciation, amortization and repair of assets

Remuneration 1,520,000 1,520,000 Depreciation - (a) (see annexure-B(a) for detail)


Other benefits 1,272,000 1,272,000 International Leasing and Financial Services Limited 3,781,151 2,762,027
2,792,000 2,792,000 International Leasing Securities Limited 2,965,566 748,865
6,746,717 3,510,892
31 Directors' fees Amortization (b)
International Leasing and Financial Services Limited 1,206,560 -
Directors' fee for attending board meeting (note- 31.1) 363,676 160,004 International Leasing Securities Limited 2,333,089 -
Executive Committee members' fee for attending EC meeting 299,488 221,182 3,539,649 -
Audit Committee members' fee for attending AC meeting 42,142 9,412 Repairs (c)
705,306 390,598 International Leasing and Financial Services Limited 1,745,768 831,228
International Leasing Securities Limited 1,067,162 149,230
31.1 Directors board meeting fee for attending each board meeting during the year was Tk. 4,000 per director. No 2,812,930 980,458
director has been paid any remuneration for any special service rendered.
Total (a+b+c) 13,099,296 4,491,350
31 (a) Consolidated directors' fees
34 Other expenses
International Leasing and Financial Services Limited 705,306 390,598
International Leasing Securities Limited 370,400 2,000 Fuel expenses for vehicles 667,768 605,053
1,075,706 392,598 Office Maintenance 713,242 572,965
32 Auditors' fees Training expenses 254,500 60,500
Books, magazines and newspapers 19,481 16,145
Statutory audit fee 104,500 104,500 Fees and subscription 1,906,684 1,232,923
104,500 104,500 Bank charges 748,013 310,890
32 (a) Consolidated auditors' fees Entertainment 476,083 720,114
CIB service charge 38,870 37,550
International Leasing and Financial Services Limited 104,500 104,500 Business development expenses 1,189,700 1,068,109
International Leasing Securities Limited 20,900 20,000 Traveling and conveyance expenses 679,021 375,905
125,400 124,500 6,693,362 5,000,154
33 Depreciation, amortization and repair of assets
34 (a) Consolidated other expenses
Depreciation - (a) (see annexure-B for detail)
Motor vehicles 1,623,032 514,842 International Leasing and Financial Services Limited 6,693,362 5,000,154
Motor vehicles - leasehold 199,114 - International Leasing Securities Limited 2,088,061 459,446
Office decoration 886,427 1,118,887 8,781,423 5,459,600
Office equipment 756,788 763,547
Furniture & fixtures 315,790 364,751 35 Provision against leases, loans and advances
3,781,151 2,762,027
Amortization (b) On classified leases, loans and advances (2,912,300) 47,755,400
Deferred expense 1,206,560 - On un-classified leases, loans and advances 49,308,496 8,093,844
1,206,560 - 46,396,196 55,849,244
Repairs (c)
Office equipment 167,448 157,628 Provision for classified and unclassified leases, loans advances has been made on the basis of analysis of portfolio
Vehicles 1,578,320 673,600 made by the Management of the Company as per FID Circular No. 08 of 2002 and amended from time to time by the
1,745,768 831,228 Department of Financial Institutions and Markets (DFIM) of Bangladesh Bank. A provision of Tk. 46,396,196 has been
made for the year 2009 which is considered to be adequate by the Management of the Company. However, the
Total (a+b+c) 6,733,478 3,593,255 Management could have made further provision against few accounts on subjective criterion as a matter of
prudence.

108
Notes to the financial statements - continued Notes to the financial statements - continued

(Figures in BDT)
2009 2008
36 Provision for diminution in value of investments During the year 2009, the Audit Committee had 3 (three) meetings.

Shares In these meetings, it performed the following functions:


Provision for quoted shares 2,754,560 -
Provision for un-quoted shares - - lAdvised the Management to strengthen the internal audit department by appointing a qualified head of
2,754,560 - internal audit.
lApproved the Audited Accounts for the year 2008.
This amount represents the difference between cost of shares purchased and market value of respective shares as of lFinalized the terms of reference of the Audit Committee of the Board.
December 31, 2009. lReviewed the half yearly accounts of June 2009 and critically evaluated the components of revenue earning, in
comparison of the same period of last year. The committee also made some recommendations about increasing
37 Tax expenses the sources of income of the company. The committee recommended to process application for merchant
banking operations and obtaining license of Chittagong Stock Exchange as potential sources of business
growth.
Current tax 35,000,000 15,000,000
l Reviewed and approved the 4 core risk guidelines of operations as required by the Central Bank viz Operational
Deferred tax (27,341) (3,488,524)
Risk, Internal Control, Treasury and Information Technology. As per the committee’s recommendation, all the
34,972,659 11,511,476
core risk guidelines were vetted by an independent financial consultant.
37 (a) Consolidated tax expenses l Approved Internal Audit and Inspection guidelines, which should be followed by the Internal Audit and
Compliance department.
International Leasing and Financial Services Limited 34,972,659 11,511,476 l The Committee critically evaluated the SEC Directive no. SEC/CMRRCD/2006-158/Admin/02-06 dated 9th
International Leasing Securities Limited 18,061,739 460,664 January 2006 wherein the roles of Company Secretary (CS), Chief Financial Officer (CFO) and Head of Internal
53,034,398 11,972,140 Audit (HIA) have been laid down and instructed to be segregated. Accordingly, the new HIA had been
38 Earnings Per Share (EPS) appointed. The role of CFO had been segregated from CS and Head of Finance had been re-designated as CFO.

Basic earning per share 40 Related party disclosures


Earning attributable to ordinary shareholders (profit after tax) 96,956,707 111,382,801
Number of ordinary shares outstanding during the year 2,909,500 2,909,500 40.1 Particulars of directors of the Company as of December 31, 2009
33.32 38.28
Sl. No. Name of Directors Designation Shareholding Status
No diluted earnings per share is required to be calculated for the year as there was no convertible securities for
dilution during the year. 1
2
3
Mr. Mahbub Jamil
Mr. Sajidur Rahman Khan
Mr. Gavin J. Walker
Chairman
Director
Director
{ Nominated by Singer Bangladesh Limited
holds 35.57% shares
38 (a) Consolidated Earnings Per Share (EPS)
4 Mr. A. M. Hamim Rahmat Ullah Director
5 Mr. Jamal Uddin Ahmad Director Holds 3.31% shares
Basic earning per share 6 Mr. Mizanur Rahman Director { Nominated by Shaw Wallace Bangladesh
Earning attributable to ordinary shareholders (profit after tax) 205,084,216 113,051,173 7 Mr. Faiz Ahmad Director Limited holds 20% shares
Number of ordinary shares outstanding during the year 2,909,500 2,909,500 8 Mr. Muhammad Iqbal Director Nominated by PHP Float Glass Industries
70.49 38.86 Hossain Chowdhury Limited holds 9.43% shares
39 Disclosure on Audit committee 9 Mr. C. K. Hyder Independant Director Not Applicable
10 Mr. Mustafizur Rahman Managing Director Not applicable, Ex-officio capacity
The Audit Committee comprises of the following
40.2 Name of Directors and their interest in different entities as of December 31, 2009
Name Status with the Company Status with the Committee Educational Qualification
Mr. C. K. Hyder Independent Director Chairman Post graduate in Commerce
& Law from Calcutta and London Sl. No. Name of Directors Status with Entities where they are
the Company Interested
Mr. Faiz Ahmad Director Member Fellow of Institute of Chartered 1 Mr. Mahbub Jamil Chairman Chairman, Singer Bangladesh Limited
Accountants of Bangladesh
Mr. Sajidur Rahman Khan Director Member Graduate in Commerce 2 Mr. Sajidur Rahman Khan Director Marketing Director, Singer Bangladesh Limited

Mr. Nehal Ahmed Deputy Managing Director Secretary Fellow of Institute of 3 Mr. Gavin J. Walker Director Director, Singer Bangladesh Limited,
Chartered Accountants of President & Chief Executive Officer, Singer Asia
Bangladesh Limited.

110
Notes to the financial statements - continued Notes to the financial statements - continued

(Figures in BDT)
2009 2008
Sl. No. Name of Directors Status with Entities where they are 40.3 Transactions with directors and their related entities
4 Mr. A. M. Hamim Rahmat Ullah Director Managing Director & CEO, Singer Bangladesh Limited Nature of
Name of the party Name of the director Relationship transaction Amount Amount
5 Mr. Jamal Uddin Ahmad Director Senior Partner, Ahmad Akhter & Co. Chartered
Accountants
S.W. Shipping Ltd. Mr. Mizanur Rahman Common Director Lease 575,949 912,423
Chairman:
S.W. Multimedia Ltd. Mr. Mizanur Rahman Common Director Lease 577,985 895,348
1) JAROMS Industries Limited
JAROMS Industries Ltd. Mr. Jamal Uddin Ahmad Common Director Lease/Loans 109,159,339 103,874,726
2) JAROMS Consultants Limited
Mr. Jamal Uddin Ahmad Mr. Jamal Uddin Ahmad Self Loan 3,700,000 -
3) Credit Rating & Information Services Limited
Mr. Mahbub Jamil Mr. Mahbub Jamil Self Loan 2,638,889 -
4) International Leasing Securities Limited
Mr. Sajidur Rahman Khan Mr. Sajidur Rahman Khan Self Loan 689,196 -
Mr. Jamal Uddin Ahmad Mr. Jamal Uddin Ahmad Self MIRs (6,934,932) -
6 Mr. Mizanur Rahman Director Chairman, Hong Kong Bangladesh securities Limited
Mr. Mahbub Jamil Mr. Mahbub Jamil Self TDRs (28,947,945) -
Executive Trustee, A F Mujibur Rahman Foundation
Mr. A. M. Hamim Rahmat Ullah Mr. A. M. Hamim Rahmat Ullah Self TDRs (8,829,508) -
Director:
S.W. Shipping Ltd. Mr. Mizanur Rahman Common Director TDRs (36,607,670) (25,119,357)
1) Shaw Wallace Bangladesh Limited
2) SW Shipping Limited
3) SW Multimedia Limited
41 Event after balance sheet date
4) National Housing Finance & Investments Limited a) Authorized capital
5) Avant Grade Limited The board of directors in their meeting held on April 29, 2010 recommended to increase of Authorized Capital by Tk.
6) House of Consultants Limited 2,700 million from 300 to 3,000 million subject to approval at the Annual General Meeting.
7 Mr. Faiz Ahmad Director Director: b) Proposed dividend
1) SW Shipping Limited Subsequent to the balance sheet date the Board of Directors recommended dividend @ 75% for the year 2009 to be
2) Shaw Wallace Bangladesh Limited distributed in the form of bonus share equals to Tk. 218,212,500 ( 3 bonus share against every 4 shares hold) in their
8 Mr. Muhammad Iqbal meeting held on April 29, 2010 subject to approval at the Annual General Meeting.
Hossain Chowdhury Director Managing Director:
1) PHP Cold Rolling Mills Ltd.
Proposed dividend consists of:
2) PHP Float Glass Industries Ltd. Cash - 37,950,000
3) PHP Power Company Ltd. Bonus share 218,212,500 37,950,000
4) PHP Aluminium Products Ltd. 218,212,500 75,900,000
5) PHP Overseas Ltd. The proposed dividend will be distributed from:
6) PHP Fisheries Ltd. Surplus in current year's profit and loss account 77,456,707 75,900,000
7) KAPS Bangladesh Ltd. Share premium account 62,500,000 -
Director: Past accumulated retained earnings/surplus 78,255,793 -
1)PHP NOF Continuous Galvanizing Mills Ltd.
218,212,500 75,900,000
2) PHP Continuous Galvanizing Mills Ltd.
3) PHP Ship Breaking & Re-cycling Industries Ltd. c) Utilization of share premium
4) PHP Corporation Ltd. The Board of Directors recommended to utilize share premium of Tk. 62,500,000 for issuance of bunus share in their
5) PHP Latex and Rubber Products Ltd. meeting held on April 29, 2010 subject to approval at the Annual General Meeting.
6) PHP Steels Ltd. There is no event which may require adjustment or disclosure other than those disclosed.
7) PHP Power Generation plant Ltd.
8) PHP Agro Products Ltd. 42 Capital expenditure commitments
9) Sekander Spinning Mills Ltd. There was no capital expenditure commitment contracted as at December 31, 2009
10) MRF Rotor Spinning Mills Ltd. 43 Claim against Company not acknowledged as debt
11)Ibrahim Cotton Mills Ltd.
There was no such claims against the Company which require to be acknowledged as debt as at December 31, 2009
12) Aljah Dayeem Uddin Hospital.
13) Bay Terminal & Distribution Company Ltd. 44 Number of employees engaged for the whole year and drawing remuneration of Tk. 36,000 and above per annum was 54.
14) PHP Stocks & Securities Ltd. 45 Approval of the financial statements
Treasurer:- University of Information Technology &
Sciences.
These financial statements were authorized for issue by the Board of Directors of the Company on April 29, 2010.
9 Mr. C. K. Hyder Independant Director

10 Mr. Mustafizur Rahman Managing Director Director:


1) International Leasing Securities Limited
Mahbub Jamil Mustafizur Rahman Nehal Ahmed FCA
2) Hong Kong Bangladesh Securities Limited Chairman Managing Director Company Secretary

112
114
Total
DESCO
company

Aramit Ltd.
Beximco Ltd.
Name of the

Titas Gas Ltd.


Square Textile Ltd.
Jamuna Oil Co. Ltd.

Summit Power Ltd.


Beximco Textile Ltd.

Power Gride Co. Ltd.


Beximco Pharma Ltd.
Z

A
A
A
A
A
A
A
A
A
Share
Category of

10
10
10
10
10

100
100
100
100
100
Face
values

237,500
20,000
50,000
10,000
12,500
15,000
7,000
50,000
45,000
20,000
8,000
Shares
No. of
31-Dec-09

80,961,737
14,273,270
5,518,989
13,339,526
9,287,643
6,732,482
10,259,282
4,207,180
7,527,389
6,212,508
3,603,468
Cost as of
Schedule of investment in shares

713.66
110.38
1,333.95
743.01
448.83
1,465.61
84.14
167.28
310.63
450.43
cost
31-Dec-09

686.50
111.40
1,211.00
723.25
454.40
1,505.75
81.40
155.80
309.30
443.60
Average per share as of
INTERNATIONAL LEASING AND FINANCIAL SERVICES LIMITED

Quoted rate Total market

31-Dec-09

78,622,675
13,730,000
5,570,000
12,110,000
9,040,625
6,816,000
10,540,250
4,070,000
7,011,000
6,186,000
3,548,800
value as of
(Annexure - A)

Annexure - B

INTERNATIONAL LEASING AND FINANCIAL SERVICES LIMITED


Schedule of fixed assets
(Figures in BDT
COST DEPRECIATION
Written down
Balance as at Addition Disposal Balance as at Rate Balance as at Charged Adjustment Balance as at value as at
Particulars January 01, during the during the December 31, (%) January 01, during the during the December 31, December 31,
2009 Year Year 2009 2009 Year Year 2009 2009

Motor vehicles 5,230,222 6,815,158 1,993,428 10,051,952 20 4,710,219 1,623,032 1,993,427 4,339,824 5,712,128
Motor vehicles - leasehold - 2,500,000 2,500,000 199,114 199,114 2,300,886
Office decoration 10,353,793 487,225 - 10,841,018 15 6,424,182 886,427 - 7,310,609 3,530,409
Office equipment 6,520,461 248,149 - 6,768,610 20 4,416,452 756,788 - 5,173,240 1,595,370
Furniture & fixtures 3,131,129 537,192 - 3,668,321 15 2,082,323 315,790 - 2,398,113 1,270,208

Total as at December 31, 2009 25,235,605 10,587,724 1,993,428 33,829,901 17,633,176 3,781,151 1,993,427 19,420,900 14,409,001

Total as at December 31, 2008 21,541,640 6,178,880 2,484,915 25,235,605 16,105,044 2,762,027 1,233,895 17,633,176 7,602,429

Annexure - B(a)
INTERNATIONAL LEASING AND FINANCIAL SERVICES LIMITED AND ITS SUBSIDIARIES
Schedule of consolidated fixed assets (Figures in BDT
COST DEPRECIATION
Written down
Balance as at Addition Disposal Balance as at Rate Balance as at Charged Adjustment Balance as at value as at
Particulars January 01, during the during the December 31, (%) January 01, during the during the December 31, December 31,
2009 Year Year 2009 2009 Year Year 2009 2009

Motor vehicles 6,438,430 8,153,606 1,993,428 12,598,608 20 4,951,861 2,132,363 1,993,427 5,090,797 7,507,811
Motor vehicles - leasehold - 2,500,000 - 2,500,000 20 - 199,114 - 199,114 2,300,886
Office decoration 18,593,935 1,047,664 - 19,641,599 15 7,660,203 2,206,514 - 9,866,717 9,774,882
Office equipment 9,835,373 1,583,921 - 11,419,294 20 5,079,434 1,686,925 - 6,766,359 4,652,935
Furniture & fixtures 3,837,463 1,261,437 - 5,098,900 15 2,188,273 521,801 - 2,710,074 2,388,826

Total as at December 31, 2009 38,705,201 14,546,628 1,993,428 51,258,401 19,879,771 6,746,717 1,993,427 24,633,061 26,625,340

Total as at December 31, 2008 21,541,640 19,648,476 2,484,915 38,705,201 16,105,044 5,008,622 1,233,895 19,879,771 18,825,430
(Annexure - C)

INTERNATIONAL LEASING AND FINANCIAL SERVICES LIMITED


Financial Highlights

(Figures in BDT)

SL No. Particulars 2009 2008


1 Paid-up capital 290,950,000 253,000,000
2 Total capital 1,061,397,689 844,954,976
3 Capital surplus/(deficit) 9,162,500 40,950,000
4 Total assets 13,607,995,519 10,879,595,023
5 Total Deposits 7,174,917,050 4,518,090,537
6 Total leases, loans and advances 9,722,159,952 7,410,557,848
7 Total contingent liabilities and commitments 183,703,722 206,223,183
8 Leases, loans and advances to deposits ratio 1.36 1.64
9 % of classified leases, loans and advances to total leases, loans and advances 4.69% 5.80%
10 Profit after tax and provisions 205,084,216 113,051,173
11 Classified leases, loans and advances 456,037,417 430,135,699
12 Provision kept against classified leases, loans and advances 210,224,800 213,137,100
13 Provision surplus/(deficit) 26,046,000 -
14 Cost of fund 12.48% 12.62%
15 Interest earning assets 12,670,097,706 10,212,888,492
16 Non-interest earning assets 937,897,813 666,706,531
17 Return on investment 14.58% 13.72%
18 Return on assets 2.11% 1.28% AUDITORS` REPORT &
19
20
income from investment
Operating profit per share
96,375,203
106
19,460,720
62
AUDITED FINANCIAL STATEMENTS
OF
21 Earning per share 70 39
22 Price earning ratio 17.89 18.86 INTERNATIONAL LEASING SECURITIES LIMITED
& ITS SUBSIDIARY

FOR THE YEAR ENDED DECEMBER 31,2009

116
AUDITORS` REPORT TO THE SHAREHOLDERS INTERNATIONAL LEASING SECURITIES LIMITED AND ITS SUBSIDIARY
Of Consolidated Balance Sheet
as at December 31, 2009
INTERNATIONAL LEASING SECURITIES LIMITED
( Figures in BDT)
Notes 2009 2008
PROPERTY AND ASSETS
We have audited the accompanying Financial Statements We also report that:
of International Leasing Securities Limited and its Cash and cash equivalents 3 (a) 24,322,059 10,413,302
Subsidiary which comprise consolidated Balance Sheet as a) we have obtained all the information and Investment 4 (a) 154,911,111 56,300,000
at December 31, 2009 and the Profit & Loss account, explanations, which to the best of our knowledge Fixed assets 5 (a) 12,216,339 11,223,001
Consolidated Cash flow statement, Statement of changes and belief were necessary for the purpose of our Receivable from customer 6 1,156,612,094 193,016,652
in Shareholders’ Equity and notes thereof for the year then audit, and made due verification thereof;
ended. Receivable from Dhaka Stock Exchange Ltd. 7 115,493,491 5,530,970
Other assets 8 (a) 18,267,968 14,406,830
b) In our opinion, proper books of account as
Respective Responsibilities of Management and required by law have been kept by the Company Total assets 1,481,823,062 290,890,755
Auditors so far as it appeared from our examination of
The company’s management is responsible for preparing those books and proper returns adequate for the LIABILITIES AND CAPITAL
the financial statements, which give true and fair view, in purpose of our audit have been received from
accordance with the Generally Accepted Accounting branch not visited by us; Liabilities
Principle (GAAP), the Bangladesh Accounting Standard Term loan 1,110,000,000 185,500,000
9
(BAS) and Bangladesh Financial Reporting Standard (BFRS). c) The Company’s consolidated Balance Sheet and Payable to customers 10 120,001,725 6,817,184
This responsibility includes designing, implementing and Profit and Loss Account together with the
maintaining internal control relevant to the preparation Payable to Dhaka Stock Exchange Ltd. 11 185,973 2,504,111
annexed notes thereto dealt with by this report
and fair presentation of Financial Statements that are free are in agreement with the books of account and Other liabilities 12 (a) 61,835,870 14,401,080
from material misstatement, whether due to fraud and returns. Total liabilities 1,292,023,568 209,222,375
error. Our responsibility is to express an independent
opinion on these Financial Statements based on our audit. Capital / Shareholders' equity
d) The financial position of the company as at
December 31, 2009 and the profit for the year Paid- up capital 13.1 60,000,000 60,000,000
Basis of Audit Opinion have been properly reflected in the consolidated Share money deposit 20,000,000 20,000,000
14
We conducted our audit in accordance with Bangladesh financial statements and the consolidated Retained earnings 15 109,796,431 1,668,380
Standards on Auditing (BSA). Those Standards require that financial statements have been prepared in
we plan and perform the audit to obtain reasonable Total shareholders' equity 189,796,431 81,668,380
accordance with generally accepted accounting
assurance about whether the Financial Statements are free principles in Bangladesh;
of material misstatements. An audit includes examining, on Minority Interest 3,063 -
a test basis, evidence supporting the amounts and e) The expenditure incurred and payments made
disclosures in the Financial Statements. An audit also were for the purposes of the Company's business; Total liabilities and Shareholders' equity 1,481,823,062 290,890,755
includes assessing the accounting principles used and
significant estimates made by management, as well as
f) The information and explanations required by us Net asset value per share 316 136
evaluating the overall Financial Statements presentation.
have been received and found satisfactory;
We believe that our audit provides a reasonable basis for
our opinion.
g) The records and statements submitted by the These financial statements should be read in conjunction with the annexed notes.
branch have been properly maintained and
Opinion
consolidated in the financial statement; and
In our opinion, the Consolidated Financial Statements
along with notes there on prepared in accordance with
Bangladesh Accounting Standards (BAS), give a true and h) The Company has complied with the relevant laws
fair view of the state of the Company’s affairs as of pertaining to reserves and maintenance of liquid
December 31, 2009 and the results of its operations and its assets. Jamal Uddin Ahmad FCA Mustafizur Rahman Shrabani
abani Bhattacharjee Rafiqul Islam
cash flows for the year then ended and comply with Chairman Director ffic
Chief Operating Officer Company Secretary
Companies Act 1994, Securities and Exchange Rules 1987,
Signed in terms
erms of our separate report of even date
dat
Dhaka Stock Exchange Rules 1954, Chittagong Stock
Exchange Rules 1995, the Rules and Regulations issued by
Bangladesh Bank and other applicable laws and Dated : Dhaka Zoha Zaman Kabir Rashid & Co.
Dated : Dhaka Zoha Zaman Kabir Rashid & Co.
regulations. April 11, 2010 Chartered Accountants
April 11, 2010 Chartered Accountants

118
INTERNATIONAL LEASING SECURITIES LIMITED INTERNATIONAL LEASING SECURITIES LIMITED
Balance Sheet Profit and Loss Account
as at December 31, 2009 for the year ended December 31, 2009

( Figures in BDT) ( Figures in BDT)


Notes 2009 2008 Notes 2009 2008

PROPERTY AND ASSETS Turnover DSE 40,047,726,955 2,074,749,413


OPERATING INCOME
Cash and cash equivalents 3 19,693,350 10,413,302 Brokerage income 16 141,617,995 7,703,371
Investment 4 57,800,000 56,300,000 Direct charges 17 (11,798,915) (655,967)
Fixed assets 5 12,159,164 11,223,001 Net brokerage income 129,819,080 7,047,404
Receivable from customer 6 1,156,612,094 193,016,652 Interest income 18 109,678,615 8,145,772
Receivable from Dhaka Stock Exchange Ltd. 7 115,493,491 5,530,970 Interest expense 19 (88,677,029) (6,416,122)
Other assets 8 120,015,775 14,406,830 Net interest income 21,001,586 1,729,650
Total assets 1,481,773,874 290,890,755 Other operating income 20 1,107,330 (106,619)
Total operating income (A) 151,927,996 8,670,435
LIABILITIES AND CAPITAL
OPERATING EXPENSES
Liabilities Salaries and allowances 21 9,568,549 2,447,781
Term loan 9 1,110,000,000 185,500,000 Rent, taxes, insurance & electricity 22 5,640,518 1,704,386
Payable to customers 10 120,001,725 6,817,184 Legal expenses 23 41,688 -
Payable to Dhaka Stock Exchange Ltd. 11 185,973 2,504,111 Postage, stamp & telecommunication 24 692,062 226,355
Other liabilities 12 61,789,745 14,401,080 Stationery, printing & advertisements 25 950,211 783,328
Total liabilities 1,291,977,443 209,222,375 Directors' fees & meeting expenses 26 370,400 2,000
Auditors' fees 27 20,900 20,000
Capital / Shareholders' equity Depreciation and repair of assets 28 6,365,818 898,095
Paid- up capital 13.1 60,000,000 60,000,000 Other expenses 29 2,088,061 459,446
Share money deposit 14 20,000,000 20,000,000 Total operating expenses (B) 25,738,207 6,541,391
Retained earnings 15 109,796,431 1,668,380
Total Shareholders' equity 189,796,431 81,668,380 Total profit before taxes (A-B) 126,189,790 2,129,044
Tax expenses 30 18,061,739 460,664
Total liabilities and Shareholders' equity 1,481,773,874 290,890,755 Net profit after taxation 108,128,051 1,668,380
Retained earnings brought forward from previous years 1,668,380 -
Net asset value per share 316 136 Profit available for appropriations 109,796,431 1,668,380
Appropriations
Dividends, etc. - -
Retained surplus 109,796,431 1,668,380
These financial statements should be read in conjunction with the annexed notes. Earnings per share (EPS) 180.21 2.78
31
These financial statements should be read in conjunction with the annexed notes.

Jamal Uddin Ahmad FCA Mustafizur Rahman Shrabani


abani Bhattacharjee Rafiqul Islam
Chairman Director Chief Operating Officer
Offic Company Secretary Jamal Uddin Ahmad FCA Mustafizur Rahman Shrabani Bhattacharjee Rafiqul Islam
Chairman Director O
Chief Operating Officer Company Secretary
Signed in terms of our separate report of even date Signed in terms of our separate report of even date

Dated : Dhaka Zoha Zaman Kabir Rashid & Co. Dated : Dhaka Zoha Zaman Kabir Rashid & Co.
April 11, 2010 Chartered Accountants April 11, 2010 Chartered Accountants

120
INTERNATIONAL LEASING SECURITIES LIMITED AND ITS SUBSIDIARY INTERNATIONAL LEASING SECURITIES LIMITED
Consolidated Cash Flow Statement Cash Flow Statement
for the year ended December 31, 2009 for the year ended December 31, 2009

(Figures in BDT ) (Figures in BDT )


2009 2008 2009 2008
A) Cash flows from operating activities A) Cash flows from operating activities
Brokerage income received 129,819,080 7,047,404 Brokerage income received 129,819,080 7,047,404
Interest receipts in cash 109,678,615 8,145,772 Interest receipts in cash 109,678,615 8,145,772
Interest payments (60,076,194) 77,804 Interest payments (60,076,194) 77,804
Cash payments to employees (9,568,549) (2,447,781) Cash payments to employees (9,568,549) (2,447,781)
Income taxes paid (9,304,595) (331,199) Income taxes paid (9,304,595) (331,199)
Receipts from other operating activities 5,192,868 145,087 Receipts from other operating activities 5,192,868 145,087
Payments for other operating activities (9,439,780) (3,074,539) Payments for other operating activities (9,394,847) (3,074,539)
Cash generated from operating activities before changes Cash generated from operating activities before changes
in operating assets and liabilities 156,301,445 9,562,548 in operating assets and liabilities 156,346,378 9,562,548
Increase / decrease in operating assets and liabilities Increase / decrease in operating assets and liabilities
Margin Loan to customer (963,595,442) (193,016,652) Margin Loan to customer (963,595,442) (193,016,652)
Net change in receivable from DSE (109,962,521) (5,530,970) Net change in receivable from DSE (109,962,521) (5,530,970)
Other assets (5,591,130) (12,889,114) Other assets (5,591,130) (12,889,114)
Net change in payable to customer 113,184,541 6,817,184 Net change in payable to customer 113,184,541 6,817,184
Net change in payable to DSE (2,318,138) 2,504,111 Net change in payable to DSE (2,318,138) 2,504,111
Other liabilities 5,262,849 7,385,021 Other liabilities 5,242,849 7,385,021
Net increase/decrease in operating assets and liabilities 963,019,841) (194,730,420) Net Increase/decrease in operating assets and liabilities (963,039,841) (194,730,420)

Net cash from operating activities (806,718,396) (185,167,872) Net cash from operating activities (806,693,463) (185,167,872)
B) Cash flows from investing activities B) Cash flows from investing activities
Proceeds from sale of securities - - Proceeds from sale of securities - -
Payments for purchases of securities (1,500,000) - Payments for purchases of securities (1,500,000) -
Payments for purchases of DSE & CSE Membership (97,454,406) (56,300,000) Payments for purchases of DSE Membership - (56,300,000)
Net change agianst purchase/sale of property, plant and equipment (4,918,441) (13,618,826) Net change agianst purchase/sale of property, plant and equipment (4,918,441) (13,618,826)
Net cash used in investing activities (103,872,847) (69,918,826) Net change of investment in subsidiary (102,108,048) -
C) Cash flows from financing activities Net cash used in investing activities (108,526,489) (69,918,826)
Receipts of long term loan 1,465,450,000 240,500,000 C) Cash flows from financing activities
Repayment of long term loan (540,950,000) (55,000,000) Receipts of long term loan 1,465,450,000 240,500,000
Issue of ordinary share - 60,000,000 Repayment of long term loan (540,950,000) (55,000,000)
Receipt of share money deposit - 20,000,000 Issue of ordinary share - 60,000,000
Net Cash from financing activities 924,500,000 265,500,000 Receipt of share money deposit - 20,000,000
D) Net increase / (decrease) in cash and cash equivalents (A+ B + C) 13,908,757 10,413,302 Dividend paid - -
E) Effects of exchange rate changes on cash and cash equivalents - - Net Cash from financing activities 924,500,000 265,500,000
F) Cash and cash equivalents at beginning of the year 10,413,302 - D) Net increase / (decrease) in cash and cash equivalents (A+ B + C) 9,280,048 10,413,302
G) Cash and cash equivalents at end of the year (D+E+F) 24,322,059 10,413,302 E) Effects of exchange rate changes on cash and cash equivalents - -
Cash and cash equivalents at end of the year represents F) Cash and cash equivalents at beginning of the year 10,413,302 -
Cash in hand (including foreign currencies) 13,581 6,009 G) Cash and cash equivalents at end of the year (D+E+F) 19,693,350 10,413,302
Balance with banks and other financial institutions {note 3 (a)} 24,308,478 10,407,293 Cash and cash equivalents at end of the year represents
Total Cash and cash equivalents 24,322,059 10,413,302 Cash in hand (including foreign currencies) 13,581 6,009
Balance with banks and other financial institutions (note 3) 19,679,769 10,407,293
These financial statements should be read in conjunction with the annexed notes. Total Cash and cash equivalents 19,693,350 10,413,302
These financial statements should be read in conjunction with the annexed notes.

Jamal Uddin Ahmad FCA Mustafizur Rahman Shrabani


abani Bhattacharjee Rafiqul Islam
Chairman Director Chief Operating Officer Company Secretary Jamal Uddin Ahmad FCA Mustafizur Rahman abani Bhattacharjee
Shrabani Rafiqul Islam
Chairman Director Chief Operating Officer Company Secretary
Signed in terms of our separate report of even date Signed in terms of our separate report of even date

Dated : Dhaka Zoha Zaman Kabir Rashid & Co. Dated : Dhaka Zoha Zaman Kabir Rashid & Co.
April 11, 2010 Chartered Accountants April 11, 2010 Chartered Accountants

122
INTERNATIONAL LEASING SECURITIES LIMITED INTERNATIONAL LEASING SECURITIES LIMITED AND ITS SUBSIDIARY
Statement of Changes in Shareholders' Equity Notes to the financial statements
for the year ended December 31, 2009 for the year ended December 31, 2009

(Figures in BDT ) 1 Company and its activities


Particulars Share Capital Share Money Retained Total
Deposit Earnings 1.1 Corporate information
International Leasing Securities Limited (ILSL) is a Private Limited Company incorporated under the Companies
Balance as at January 1, 2009 60,000,000 20,000,000 1,668,380 81,668,380 Act 1994 on April 09, 2008 bearing Registration Number C-70738 (3247)/08. The registered office of the
Company is at Printers Building, 14th floor, 5, Rajuk Avenue, Dhaka- 1000. It is a 99.99% subsidiary of
Changes during the period International Leasing and Financial Services Ltd. The Company started its operation on August 31, 2008.
Profit after tax for the year - - 108,128,051 108,128,051
1.2 Principal activities
The main business of the Company is to carry on the business as a broker, dealer in stocks and securities,
Net changes in 2009 - - 108,128,051 108,128,051
commercial papers, bonds, debentures, debenture stocks, treasury bills/bonds and/or any financial
instruments.
Balance as at December 31, 2009 60,000,000 20,000,000 109,796,431 189,796,431
1.3 Subsidiary company
International Leasing Securities Limited acquired 99,997 no. of shares of Hongkong Bangladesh Securities
Limited as per terms set forth in vendors' agreement dated 25-10-2009 between previous shareholders of
Statement of Changes in Shareholders' Equity Hong Kong Bangladesh Securities Limited and International Leasing Securities Limited. Upon acquisition of
99,997 no. of shares, Hong Kong Bangladesh Securities Limited becomes a wholly owned subsidiary company
for the period from April 09, 2008 to December 31, 2008 of International Leasing Securities Limited from October 25, 2009.

Hong Kong Bangladesh Securities Limited was incorporated in Chittagong on April 06, 1997 as a private
Particulars Share Capital Share Money Retained Total limited company bearing Registration Number CHC-2587 under Companies Act 1994 with an authorised share
Deposit Earnings capital of Tk. 85,000,000. International Leasing Securities Limited holds 99.997% share of this company (99,997
nos. of shares of Tk. 100 each). Since the Company did not obtain Brokerage as well as Dealership License till
Balance as on April 09, 2008 - - - -
December 31, 2009 it could not start its operation. As per memorandum of the Company the main business of
the Company is to carry on the business as a broker, dealer in stocks and securities, commercial papers, bonds,
debentures, debenture stocks, foreign currencies, treasury bills/bonds and/or any financial instruments
Changes during the period
Profit after tax for the period - - 1,668,380 1,668,380
1.4 Branch office
The company opened its branch office in Chittagong on July 07, 2009. The approval of opening of this branch
New issue of share capital 60,000,000 - - 60,000,000 was given by Securities and Exchange Commission on March 19, 2009 vide approval letter no.
SEC/Reg/DSE/2009/123.
Share money deposit - 20,000,000 - 20,000,000
2 Significant accounting policies
Net changes in 2008 60,000,000 20,000,000 1,668,380 81,668,380
2.1 Basis of preparation and presentation of the financial statements
Balance as at December 31, 2008 60,000,000 20,000,000 1,668,380 81,668,380 The financial statements have been prepared in accordance with Generally Accepted Accounting Principles
(GAAP) in Bangladesh under the historical cost convention. No adjustment has been made for inflationary
factor affecting the financial statements.

2.2 Statement of compliance


The financial statements have been prepared on a going concern basis following the accrual basis of
accounting except for cash flow statement. In preparation of these financial statements the Company followed
Jamal Uddin Ahmad FCA Mustafizur Rahman Shrabani
abani Bhattacharjee Rafiqul Islam respective provisions of The Companies Act, 1994, Securities and Exchange Rules, 1987, Dhaka Stock Exchange
Chairman Director Chief Operating Officer Company Secretary
Rules, 1954 and Bangladesh Accounting Standards (BAS) and/or Bangladesh Financial Reporting Standards
(BFRS).
Signed in terms
erms of our separate report of even date
dat
2.3 Use of estimates and judgement
Dated : Dhaka Zoha Zaman Kabir Rashid & Co. Preparation of the financial statements in conformity with BAS requires the use of certain critical accounting
April 11, 2010 Chartered Accountants estimates. It also requires management to exercise its judgment in the process of applying the company's
accounting policies that affect the reported amounts of revenue and expenses, assets and liabilities. Due to

124
Notes to the financial statements - continued Notes to the financial statements - continued

involvement of inherent uncertainty in making estimates, actual results could be different from those 2.8 Recognition of fixed assets and depreciation (BAS 16 “Property, Plant & Equipment”)
estimates.
Recognition
2.4 Consolidation of operations of subsidiary An item of fixed assets is recognized as an asset when it is probable that future economic benefits associated
The financial statements of the company and its subsidiary, as mentioned in note no. 1.3 have been with the asset will flow to the enterprise and the cost of the asset to the enterprise can be measured reliably.
consolidated in accordance with Bangladesh Accounting Standard no. 27 “Consolidated and Separate Financial The cost of an item of fixed assets is its purchase price (net of discounts and rebates), including import duties
Statements”. The consolidation of the financial statements has been made after eliminating all material inter and taxes, and any directly attributable cost of bringing the asset to working condition for its intended use
company transactions.
Measurement
Since the Hong Kong Bangladesh securities Limited has no revenue generating activities and all expenses Fixed assets for own use are stated initially at cost and subsequently at cost less accumulated depreciation and
incurred has been deferred as deferred revenue expense, the profit and loss accounts of the Company and any accumulated impairment losses or at a re-valued amount less any accumulated depreciation and
Hong Kong Bangladesh Securities Limited are not consolidated. subsequent accumulated impairment losses.

Before acquisition of shares of Hong Kong Bangladesh Securities Limited the accounting year of the Company Subsequent expenditure
was July 01 to June 30. After the acquisition the Board of Directors of Hong Kong Bangladesh Securities Subsequent expenditures relating to any item of fixed assets are added to the carrying amount of the asset
Limited in their 2nd meeting held on 12-11-2009 decided to change the accounting year from July-June to when it is probable that future economic benefits, exceeding its present standard of performance, will flow to
January-December for consolidation and purpose of comparability. the company and the cost of the item can be measured reliably. All other costs are recognised in profit and loss
account as expense.
Since, the Company (ILSL) become parent company of the subsidiary from 25-10-2009, assets and liabilities as
of December 31, 2008 are not consolidated. All assets and liabilities as of December 31, 2009 of the company Depreciation
and its subsidiary are shown in the consolidated balance sheet. The interest of minority shareholders of the Components of an asset with differing patterns of benefits are depreciated separately.
subsidiary are shown in the consolidated balance sheet under the heading “Minority Interest”.
Depreciation on own fixed assets is charged systematically over the asset's useful life. Full year depreciation is
2.5 Branch accounting charged on additions irrespective of date when the related assets are put into use. On the other hand, no
The company has only one branch at Chittagong and no overseas branch as of December 31, 2009. Accounts depreciation has been charged on the month of disposal.
of the branch are maintained at head office from which these accounts are drawn up.
The company follows the straight-line method of depreciation applying annual rates stated as follows:
2.6 Cash flow statements
The cash flow statement is prepared using the direct method as stipulated in Bangladesh Accounting Standard n Furniture and fixtures 15%
(BAS) 7 – “Cash Flow Statements”. Cash and cash equivalents for cash flow statement comprises mainly of cash
in hand and balances at banks. n Office equipment 20%
n Office decoration 15%
2.7 Revenue recognition (BAS 18, “Revenue”)
BAS 18 is a general revenue recognition standard, which states that revenue should be measured at the fair n Motor vehicles 20%
value of the consideration received or receivable. This is usually the amount of cash or cash equivalents
received or receivable and recognized when it is probable that economic benefits will flow to the entity. Disposal or retirement
The gain or loss arising on the disposal or retirement of fixed assets is determined as the difference between
2.7.1 Brokerage commission the sale proceeds and the net carrying amount of the asset and is recognized in profit and loss account.
Brokerage commission is recognized as income when the order of selling or buying shares is executed.
2.9 Intangible assets (BAS- 38)
2.7.2 Interest on margin loan Costs incurred to procure softwares represent as intangible assets (note- 8.2.1.1). Intangible assets are to be
Interest on margin loans extended to customers is charged to their accounts calculated on the daily product amortised as per decision of the Board of Directors.
basis.
2.10 Borrowing cost
2.7.3 Interest on bank deposits All borrowing costs are recognized as expenses in the period in which they incurred in accordance with
Interest on deposits with banks is recognized as income when the banks credit the amounts into the benchmark treatment of Bangladesh Accounting Statnderd-23.
Company's bank accounts.

126
Notes to the financial statements - continued Notes to the financial statements - continued

(Figures in BDT)
2009 2008
2.11 Accrued expenses, provisions and other payables 3 Cash and cash equivalents
As per BAS 37 “Provisions, Contingent Liabilities and Contingent Assets”, a provision is recognized only when a Cash in hand 13,581 6,009
past event has created a legal or constructive obligation, an outflow of resources is probable, and the amount Cash at bank (note- 3.1) 19,679,769 10,407,293
of the obligation can be estimated reliably. Amount recognized as a provision is the best estimate of 19,693,350 10,413,302
settlement amount at balance sheet date. 3.1 Cash at bank
Bank Alfalah Ltd. 1,004,957 59,242
2.12 Deferred Revenue expenses Standard Chartered Bank 18,674,812 10,348,051
All expenses incurred in connection of incorporation of the Company as well as all revenue expenditures 19,679,769 10,407,293
incurred before starting of the operations of the Company on August 31, 2008 are recognized as Deferred 3 (a) Consolidated cash and cash equivalents
Revenue Expenses (note- 8.4). These expenses will be amortized within five years on straight line basis starting Cash in hand (a)
from 2009 onward as per decision of the Board of Directors.
International Leasing Securities Limited 13,581 6,009
Hong Kong Bangladesh Securities Limited - -
2.13 Tax provision
13,581 6,009
The Company's brokerage income is subject to deduction of tax at source as final discharge of tax liability.
Cash at bank (b)
Provision for tax on income other than brokerage commission has been made after necessary adjustment for
International Leasing Securities Limited 19,679,769 10,407,293
taxation purpose in accordance with the provision of Income Tax Ordinance, 1984 and amendments thereto.
Hong Kong Bangladesh Securities Limited 4,628,709 -
24,308,478 10,407,293
2.14 Cash and cash equivalents
Total (a+b) 24,322,059 10,413,302
Cash comprises cash in hand and cash at bank. Cash equivalents are short term, highly liquid investments that
are readily convertible to a known amount of cash which are subject to an insignificant risk of change in value. 4 Investment
Investment in shares (note-4.1) 1,500,000 -
2.15 Earnings Per Share (EPS) Investment in membership of DSE (note-4.2) 56,300,000 56,300,000
57,800,000 56,300,000
The Company calculates Earnings per Share (EPS) in accordance with Bangladesh Accounting Standards-33,
which is shown in the face of the Profit and Loss Account, and the computation is stated in Note- 31. No diluted
earning per share is required to be calculated for the period, as there was no scope for diluting during the 4.1 This represents investment in 1,50,000 nos. of share of Tk. 10 each issued by Trust Bank 1st Mutual fund under
period under review. private placement. The lock in period of these shares is 6 months to be expired on 27-07-2010.

2.16 Reconciliation of inter-Company account 4.2 Investment in membership of Dhaka Stock Exchange Ltd.
Accounts with regard to inter-Company are reconciled regularly and there are no material differences which Cost of Membership Licence 55,000,000 55,000,000
may affect the financial statements significantly. Cost of stamps for transfer of Membership 900,000 900,000
Entrances fee- DSE 400,000 400,000
2.17 Reporting currency 56,300,000 56,300,000
The financial statements are presented in Bangladeshi Taka which is the Company's functional currency.
The above costs include cost of purchasing of Membership Licence from Dhaka Stock exchange Limited (DSE)
Others under open bid for sale of Membership Licence and other related costs for transfer of the licence in the name
a. Previous year figures have been re-arranged wherever necessary for the purpose of comparison with of the Company from International Leasing and Financial Services Limited.
current year's presentation without any impact on the profit and value of assets and liabilities as
reported in the financial statements. 4 (a) Consolidated investment
International Leasing Securities Limited 57,800,000 56,300,000
b. Figures in the financial statements and notes there to have been rounded off to the nearest taka. Hong Kong Bangladesh Securities Limited 97,111,111 -
154,911,111 56,300,000
5 Fixed assets
Motor Vehicles 2,546,656 1,208,208
Office Decoration 8,800,581 8,240,142
Office Equipment 4,650,684 3,314,912
Furnitures & fixtures 1,373,404 706,334
17,371,325 13,469,596
Less: accumulated depreciation 5,212,161 2,246,595
Net book value at the end of the year (See annx - 1 for detail) 12,159,164 11,223,001

128
Notes to the financial statements - continued Notes to the financial statements - continued

(Figures in BDT) (Figures in BDT)


2009 2008 2009 2008
5 (a) Consolidated fixed assets 8.2 Advance, deposit and Prepaid expenses
International Leasing Securities Limited 12,159,164 11,223,001 Advances (note- 8.2.1) 3,061,818 2,591,737
Hong Kong Bangladesh Securities Limited 57,175 - Deposits (note- 8.2.2) 122,500 122,500
12,216,339 11,223,001 Advance for CSE Membership 5,128,209 -
8,312,527 2,714,237
6 Receivable from customer 1,156,612,094 193,016,652 8.2.1 Advances

This represents amount receivables from customer against shares purchased Advance for office space in DSE building at Nikunja 600,000 350,000
Advances for expenses - 4,919
7 Receivable from DSE 115,493,491 5,530,970 Advances for software & PABX system (note - 8.2.1.1) 2,461,818 2,236,818
3,061,818 2,591,737
This represents amount receivable from Dhaka Stock Exchange Limited (DSE) against sale of shares through the stock
exchange. Detail break-up of this amount is as follows: 8.2.1.1 Advance for software and PABX system represents amount paid to Business Automation and Leads
Corporation for an integrated software and PABX system which is currently under test run. On full
Grouping of shares Date of transaction Amount Amount implementation of these, the total cost will be capitalized and amortized with the approval of the
ABGN 24-Dec-08 - 2,112,746 Board as per applicable standards.
ABGN 30-Dec-08 - 342,145
Z 18-Dec-08 - 103,933 8.2.2 Deposits
Z 21-Dec-08 - 214,010
Z 22-Dec-08 - 90,365 Security deposit with BTTB 20,000 20,000
Z 23-Dec-08 - 1,180,211 Security deposit with CDBL 102,500 102,500
Z 24-Dec-08 - 73,000 122,500 122,500
Z 28-Dec-08 - 967,580
Z 30-Dec-08 - 446,980 8.3 Other receivables - 7,160
Z 17-Dec-09 32,575 - The amount has been liquidated during the year.
Z 20-Dec-09 398,638 -
Z 21-Dec-09 444,412 - 8.4 Deferred revenue expenses 11,665,446 11,665,446
Z 23-Dec-09 373,125 -
Z 24-Dec-09 2,117,600 - Less: amortization 2,333,089 -
ABGN 27-Dec-09 43,537,846 - 9,332,357 11,665,446
Z 27-Dec-09 181,300 -
Z 29-Dec-09 826,400 - Deferred revenue expenses include preliminary expenses and all revenue expenditures made up to the date of
ABGN 30-Dec-09 67,581,595 - starting of operations of the Company as on August 31, 2008. The amount is to be amortized within five years
Total 115,493,491 5,530,970 at equal ratio as per decision of the Board. During the year one fifth of total deferred revenue expenses has
been amortized.
8 Other assets
Investment in Subsidiary (note-8.1 ) 102,108,048 - 8 (a) Consolidated other assets
Advance, deposit and Prepaid expenses (note-8.2) 8,312,527 2,714,237 International Leasing Securities Limited 17,907,727 14,406,830
Other receivables (note-8.3) - 7,160 Hong Kong Bangladesh Securities Limited 360,241 -
Advance corporate tax 262,843 19,987 18,267,968 14,406,830
Deferred Revenue expense (note- 8.4) 9,332,357 11,665,446 9 Term loan
120,015,775 14,406,830 Balance as at 1st January, 2009 /9th April, 2008 185,500,000 -
Add: received during the period 1,465,450,000 240,500,000
8.1 Investment in subsidiary 102,108,048 - Less: repayment during the period (540,950,000) (55,000,000)
Balance as at December 31 1,110,000,000 185,500,000
This represents 99,997 nos. of ordinary shares of Hong Kong Bangladesh Securities Limited subscribed by
International Leasing Securities Limited out of their 100,000 nos. of shares. 10 Payable to customer 120,001,725 6,817,184

This represents amount payable to customer against sale of shares and/or receipts for purchasing of shares

130
Notes to the financial statements - continued Notes to the financial statements - continued

(Figures in BDT) (Figures in BDT)


2009 2008 2009 2008
11 Payable to Dhaka Stock Exchange Ltd. 185,973 2,504,111 12.3 Provision for income tax

This represents amount payable to Dhaka Stock Exchange Limited (DSE) against purchase of shares through the Balance as at 1st January, 2009 /9th April, 2008 149,452 -
stock exchange. Detail break-up of this amount is as follows: Add: Provision made during the year 9,000,000 149,452
9,149,452 149,452
Grouping of shares Date of transaction Amount Amount
ABGN 30-Dec-08 - 17,585 12 (a) Consolidated other liabilities
Z 24-Dec-08 - 1,219,739
Z 28-Dec-08 - 242,081 International Leasing Securities Limited 61,789,745 14,401,080
Z 30-Dec-08 - 1,024,706 Hong Kong Bangladesh Securities Limited 46,125 -
ABGN 30-Dec-09 185,973 - 61,835,870 14,401,080
Total 185,973 2,504,111
13 Share capital
12 Other liabilities
Authorised 250,000,000 250,000,000
Payable and accrued expenses (Note- 12.1) 40,012,423 6,866,607
Inter Company current account (note- 12.2) 12,627,870 7,385,021 2,500,000 nos. of ordinary shares of taka 100 each
Provision for income tax (note- 12.3) 9,149,452 149,452
61,789,745 14,401,080 13.1 Issued, subscribed & paid up 60,000,000 60,000,000

12.1 Payable and accrued expenses 600,000 nos. of ordinary shares of taka 100 each

CDBL charges 4,337,244 100,706 Composition of shareholdings


BO account maintenance fee payable to CDBL - 151,000
Office maintenance 39,374 28,795 Particulars No. of shares % of holding Amount
Vehicle running expense 24,867 38,950
Audit fee 40,900 20,000 a) Corporate 599,997 99.9995 59,999,700
Utilities 35,300 22,832 International Leasing & Fiancial Services Ltd. 599,997 99.9995 59,999,700
Telephone 6,342 6,798
Unclaimed liability - 3,600 b) Individual 3 0.0005 300
Payable for Air Conditioner 218,856 - Mr. Jamal Uddin Ahmad 1 0.0002 100
E-mail bill 30,100 - Mr. Mizanur Rahman 1 0.0002 100
Business Promotion 10,000 - Mr. Sajidur Rahman Khan 1 0.0002 100
Paper bill 809 - Total 600,000 100.00 60,000,000
Repairs and maintenance 50,450 -
Printing and statinery 123,420 - 14 Share money deposit 20,000,000 20,000,000
Interest on loan from ILFSL 35,094,761 6,493,926
40,012,423 6,866,607 The amount has been deposited by International Leasing and Financial Services Limited for future allotment of
shares as per decision of the Board of Directors.
12.2 Inter Company current account
15 Retained earnings
Payable for furniture and fixtures 42,813 42,813
Payable for motor vehicle 1,208,208 1,208,208 Retained earnings as at 1st January/9th April 1,668,380 -
Payable for HBSL 4,628,209 - Add: profit after tax for the year 108,128,051 1,668,380
Sale proceeds of shares 6,134,000 6,134,000 Available for appropriation 109,796,431 1,668,380
Liabiliies for expenses 414,943 - Less: appropriations - -
Payable related to HBSL 199,697 - Balance as at December 31 109,796,431 1,668,380
12,627,870 7,385,021

132
Notes to the financial statements - continued Notes to the financial statements - continued

(Figures in BDT) (Figures in BDT)


2009 2008 2009 2008
16 Brokerage income 141,617,995 7,703,371 24 Postage, stamp & telecommunication

This represents brokerage commission earned from selling and buying of securities on behalf of clients Postage, stamp, Internet 383,519 155,771
Telephone 308,543 70,584
17 Direct charges 692,062 226,355

Hawla charges 1,786,983 137,280 25 Stationery, printing & advertisements


Laga charges 10,011,932 518,687
11,798,915 655,967 Printing and stationery 860,248 783,328
Publicity and advertisement 89,963 -
18 Interest income 950,211 783,328

Interest on margin loan 108,903,992 7,924,524 26 Directors' fees


Interest on bank account 774,623 221,248
109,678,615 8,145,772 Directors' fee for attending board meeting 370,400 2,000
Executive Committee members' fee for attending EC meeting - -
Interest on Margin loan represents interest charged on loan extended to customer against purchase of shares. Audit Committee members' fee for attending AC meeting - -
370,400 2,000
19 Interest expense 88,677,029 6,416,122
Directors board meeting fee for attending each board meeting during the year was Tk. 4,000 per director. No director
This represents interest on term loan taken from ILFSL. has been paid any remuneration for any special service rendered.

20 Other operating income 27 Auditors' fees

CDBL charges recovered 11,118,409 178,563 Statutory audit fee 20,900 20,000
Sale of BO account forms 760,980 131,900 20,900 20,000
BO account maintenance fee recovered 210,700 286,200
Sale of scraps - 18,500 28 Depreciation,amortization and repair of assets
Re-imbursement to CDBL (10,982,759) (721,782)
1,107,330 (106,619) Depreciation - (a) (see annexure-1 for details)

21 Salary and allowances Motor Vehicles 509,331 80,547


Office Decoration 1,320,087 412,007
Basic salary and other allowances 9,411,189 2,411,626 Office Equipment 930,137 220,994
Company's contribution to provident fund 157,360 36,155 Furnitures & fixtures 206,011 35,317
9,568,549 2,447,781 2,965,566 748,865

22 Rent, taxes, insurance & electricity Amortization (b)

Rent, rate and taxes 4,968,575 1,560,000 Deferred expense 2,333,089 -


Insurance 87,832 -
Electricity, gas and water 584,111 144,386 2,333,089 -
5,640,518 1,704,386 Repairs (c)

23 Legal expenses Office equipment 806,409 95,195


Legal expenses 41,688 - Vehicles 260,753 54,035
Other professional charges - - 1,067,162 149,230
41,688 - Total (a+b+c) 6,365,818 898,095

134
Notes to the financial statements - continued

December 31,

1,795,683
6,244,473
3,057,565
1,061,443

12,159,164

11,223,001
Annexure - 1

(Figures in BDT

Written down
value as at

2009
(Figures in BDT)
2009 2008

December 31,

750,973
2,556,108
1,593,119
311,961

5,212,161

2,246,595
Balance as at
29 Other expenses

2009
Fuel expenses for vehicles 225,743 112,909
Office Maintenance 558,734 122,903
Books, magazines and newspapers 8,424 1,492
Fees and subscription 212,082 1,025

Adjustment
during the
Bank charges 31,583 16,283

Year

-
-

-
-

-
-
Entertainment 437,651 75,948

DEPRECIATION
Business development expenses 419,590 116,000
Travelling and conveyance expenses 194,254 12,886

509,331
1,320,087
930,137
206,011

2,965,566

2,246,595
during the
2,088,061 459,446

Charged

Year
INTERNATIONAL LEASING SECURITIES LIMITED
30 Tax expenses
Current tax provision (note-31.1) 9,000,000 149,452

241,642
1,236,021
662,982
105,950

2,246,595

-
Balance as at
January 01,
Tax paid on brokerage income (note- 31.2) 9,061,739 311,212

2009
18,061,739 460,664

30.1 Current tax provision represents provision made for net interest income and other operating income

as at December 31, 2009


Schedule of fixed assets
calculated @ 37.5%.

Rate
(%)

15
20
15
20
30.2 Tax paid on brokerage income represents tax deducted at source by DSE on the turnover amounting Tk.
9,501,922,802 and Tk. 30,545,804,153 @ 0.015% and @ 0.025% respectively as per section 53BBB which is final

December 31,

2,546,656
8,800,581
4,650,684
1,373,404

17,371,325

13,469,596
Balance as at
discharge of tax liability u/s 82 ('C) of Income Tax Ordinance 1984.

2009
31 Earnings per share (EPS)
Basic earning per share
Earning attributable to ordinary shareholders (profit after tax) 108,128,051 1,668,380
Number of ordinary shares 600,000 600,000

during the
Disposal
180.21 2.78

Year

-
-

-
-

-
-
32 Event after balance sheet date

COST
a) Appropriations

1,338,448
560,439
1,335,772
667,070

3,901,729

13,469,596
during the
Addition
Subsequent to the balance sheet date the Board of Directors in their meeting held on April 11, 2010 recommended

Year
dividend @ 150% i.e. Tk. 150 against per share of Tk. 100 each for the year 2009 to be distributed in the form of cash
subject to approval at the Annual General Meeting.
b) Transfer of CSE Membership

1,208,208
8,240,142
3,314,912
706,334

13,469,596
Balance as at
January 01,
The transfer of CSE Membership in the name of International Leasing Securities Limited from Hong Kong Bangladesh

2009
Securities Limited was approved on April 08, 2010 by the Board of Directors of Chittagong Stoch Exchange Limited.

-
By virtue of this transfer, the Company is now carrying out necessary formalities to obtain Stock Brokerage and
Dealership license from regulatory authorities.
33 Number of employees engaged for the whole of the period was 32.

Office decoration
Office equipment
Motor vehicles

Furniture & fixtures

Total as at December 31, 2009

Total as at December 31, 2008


34 Approval of the financial statements
These financial statements were approved by the Board of Directors in their meeting held on April 11, 2010 for
placement in the AGM of the Company.

Particulars
Jamal Uddin Ahmad FCA Mustafizur Rahman abani Bhattacharjee
Shrabani Rafiqul Islam
Chairman Director ffic
Chief Operating Officer Company Secretary

136
138
Annexure - 1(a)
INTERNATIONAL LEASING SECURITIES LIMITED AND ITS SUBSIDIARY
Consolidated schedule of fixed assets
as at December 31, 2009
(Figures in BDT
COST DEPRECIATION
Written down
Balance as at Addition Disposal Balance as at Rate Balance as at Charged Adjustment Balance as at value as at
Particulars January 01, during the during the December 31, (%) January 01, during the during the December 31, December 31,
2009 Year Year 2009 2009 Year Year 2009 2009

Motor vehicles 1,208,208 1,338,448 - 2,546,656 20 241,642 509,331 - 750,973 1,795,683


Office decoration 8,240,142 560,439 - 8,800,581 15 1,236,021 1,320,087 - 2,556,108 6,244,473
Office equipment 3,314,912 1,335,772 - 4,650,684 20 662,982 930,137 - 1,593,119 3,057,565
Furniture & fixtures 706,334 724,245 - 1,430,579 15 105,950 206,011 - 311,961 1,118,618

Total as at December 31, 2009 13,469,596 3,958,904 - 17,428,500 2,246,595 2,965,566 - 5,212,161 12,216,339

Total as at December 31, 2008 - 13,469,596 - 13,469,596 - 2,246,595 - 2,246,595 11,223,001

FOR THE YEAR ENDED DECEMBER 31,2009


HONGKONG BANGLADESH SECURITIES LIMITED
OF
AUDITED FINANCIAL STATEMENTS
AUDITORS` REPORT &
HONGKONG BANGLADESH SECURITIES LIMITED
Balance Sheet
AUDITORS` REPORT TO THE SHAREHOLDERS as at December 31, 2009
Of
HONGKONG BANGLADESH SECURITIES LIMITED
(Figures in BDT)
Notes 2009 2008

PROPERTY AND ASSETS

Cash and cash equivalents 3 4,628,709 4,653,642


Investment 4 97,111,111 5,000,000
We have audited the accompanying Balance Sheet of the We also report that: Fixed assets 5 57,175 57,175
HongKong Bangladesh Securities Limited as of December Other assets 6 360,241 294,183
31, 2009 and the related Cash Flow Statement and the Total assets 102,157,236 10,005,000
a) we have obtained all the information and
notes to the Financial Statements. The preparation of these
explanations which to the best of our knowledge
Financial Statements is the responsibility of the Company's
and believe were necessary for the purpose of our LIABILITIES AND CAPITAL
management. Our responsibility is to express an
audit and made due verification thereof;
independent opinion on these financial Statements based
on our audit. Liabilities
b) in our opinion, proper books of account as Payables & accrued expenses 7 46,125 5,000
required by law have been kept by the company
We conducted our audit in accordance with BSA. Those Capital / Shareholders' equity
so far as it appeared from our examination of
standards require that we plan and perform the audit to
those books for the purpose of our audit:
obtain a reasonable assurance about whether the financial
statements are free of material misstatement. An audit Paid- up capital 8.1 10,000,000 10,000,000
includes examining on a test basis, evidence supporting c) the company's Balance Sheet dealt with by the
the amounts and disclosure in the financial statements. An report is in agreement with the books of Revaluation surplus - CSE Membership 9 92,111,111 -
audit also includes assessing the accounting principles accounts.
used and significant estimates made by the management
as well as evaluating the overall financial statements Total Shareholders' equity 102,111,111 10,000,000
presentation. We believe that our audit provide a
reasonable basis for our opinion. Total liabilities and Shareholders' equity 102,157,236 10,005,000

In our opinion, the financial statements prepared in Net asset value per share 1,021 100
accordance with Bangladesh Accounting Standards (BAS ),
give a true and fair view of the state of the Company's
affairs as of December 31, 2009 and the results of its
operations for the period then ended and comply with the
applicable sections of the Companies Act, 1994 and other Dated : Dhaka Co.
Rahman Mostafa Alam & Co
applicable laws and regulations. April 06, 2010 Chartered Accountants
The annexed notes form an integnal part of these financial statements.

Mizanur Rahman Mustafizur Rahman Nehal Ahmed Rafiqul Islam


Chairman Director Managing Director Company Secretary

erms of our separate


Signed in terms separ epor of even date
report

Dated : Dhaka Co
Rahman Mostafa Alam & Co.
April 06, 2010 Chartered Accountants

140
HONGKONG BANGLADESH SECURITIES LIMITED HONG KONG BANGLADESH SECURITIES LIMITED
Cash Flow Statement Notes to the financial statements
for the period from July 01, 2009 to December 31, 2009 for the period from July 01, 2009 to December 31, 2009

(Figures in BDT ) 1 Company and its activities


2009 2008 1.1 Corporate information
Hong Kong Bangladesh Securities Limited (HBSL) is a Private Limited Company incorporated al Chittagong under
the Companies Act 1994 on April 06, 1997 bearing Registration Number CHC-2587. The registered office of the
Cash flow from operating activities
Company is at National House (1st floor) 109, Agrabad C/A, Chittagong. Since the Company did not obtain
Brokerage as well as Dealership License till December 31, 2009 it could not start its operation.
Payment for expenses (44,933) (1,023)
Upon acquisition of 99.997% share of the Company by International Leasing Securities Limited as per terms set
Increase of current liabilities 20,000 - forth in vendors agreement dated 25-10-2009 between previous shareholders of Hong Kong Bangladesh
securities Limited and International Leasing securities Limited the Company become 99.997% subsidiary of
Net cash inflow/(outflow) from operating activities (24,933) (1,023) International Leasing securities Limited.
1.2 Principal activities
Cash flow from investing activities As per memorandum of the Company the main business of the Company is to carry on the business as a broker,
dealer in stocks and securities, commercial papers, bonds, debentures, debenture stocks, treasury bills/bonds
Net cash inflow/(outflow) from investing activities - - and/or any financial instruments.
Since, the Company did not obtained Brokerage as well as Dealership license and could not start its operation no
Cash Flow from Financing activities profit and loss account has been prepared for the period under audit.
2 Significant accounting policies
Net cash inflow/(outflow) from financing activities - -
2.1 Basis of preparation and presentation of the financial statements
The financial statements have been prepared in accordance with Bangladesh Accounting Standard (BAS), under
Net cash inflow/(outflow) for the period (24,933) (1,023)
the historical cost convention, except for revaluation of Membership of CSE.

Opening balance of cash and cash equivalents 4,653,642 4,654,665 2.2 Statement of compliance
The financial statements have been prepared on a going concern basis following the accrual basis of accounting
except for cash flow statement. In preparation of these financial statements the Company followed respective
Closing balance of cash and cash equivalents 4,628,709 4,653,642 provisions of The Companies Act, 1994, Securities and Exchange Rules, 1987, Dhaka Stock Exchange Rules, 1954
and Bangladesh Accounting Standards (BAS) and/or Bangladesh Financial Reporting Standards (BFRS).
2.3 Use of estimates and judgement
Preparation of the financial statements in conformity with BAS requires the use of certain critical accounting
estimates. It also requires management to exercise its judgment in the process of applying the company’s
accounting policies that affect the reported amounts of revenue and expenses, assets and liabilities. Due to
involvement of inherent uncertainty in making estimates, actual results could be different from those estimates.
2.4 Cash flow statements
The cash flow statement is prepared using the direct method as stipulated in Bangladesh Accounting Standard
The annexed notes form an integnal part of these financial statements.
(BAS) 7 – “Cash Flow Statements”. Cash and cash equivalents for cash flow statement comprises mainly of cash in
hand and balances at banks.
2.5 Revenue recognition (BAS 18, “Revenue”)
BAS 18 is a general revenue recognition standard, which states that revenue should be measured at the fair value
of the consideration received or receivable. This is usually the amount of cash or cash equivalents received or
receivable and recognized when it is probable that economic benefits will flow to the entity.
Mizanur Rahman Mustafizur Rahman Nehal Ahmed Rafiqul Islam Till December 31, 2009 the Company did not start its revenue generating activities in absence of Brokerage and
Chairman Director Managing Director Company Secretary Dealership License from the authority.
erms of our separate
Signed in terms separ epor of even date
report 2.6 Recognition of fixed assets and depreciation (BAS 16 “Property, Plant & Equipment”)
Recognition
Dated : Dhaka Co
Rahman Mostafa Alam & Co. An item of fixed assets is recognized as an asset when it is probable that future economic benefits associated
April 06, 2010 Chartered Accountants

142
Notes to the Financial Statements - continued… Notes to the Financial Statements - continued…

(Figures in BDT)
2009 2008
with the asset will flow to the enterprise and the cost of the asset to the enterprise can be measured reliably. The 3 Cash and cash equivalents
cost of an item of fixed assets is its purchase price (net of discounts and rebates), including import duties and
taxes, and any directly attributable cost of bringing the asset to working condition for its intended use.
Cash in hand - 17,000
Cash at bank (note- 3.1) 4,628,709 4,636,642
Measurement
Fixed assets for own use are stated initially at cost and subsequently at cost less accumulated depreciation and 4,628,709 4,653,642
any accumulated impairment losses or at a re-valued amount less any accumulated depreciation and 3.1 Cash at bank
subsequent accumulated impairment losses.
Bank Alfalah Ltd. 4,628,709 -
Subsequent expenditure
Southeast Bank - 4,636,642
Subsequent expenditures relating to any item of fixed assets are added to the carrying amount of the asset
when it is probable that future economic benefits, exceeding its present standard of performance, will flow to 4,628,709 4,636,642
the company and the cost of the item can be measured reliably. All other costs are recognised in profit and loss
account as expense. 4 Investment

Depreciation
Cost of Membership Licence 5,000,000 5,000,000
Since the Company did not generate any revenue, the depreciation on fixed assets has been charged.
Addition by revaluation 92,111,111 -
When the Company start its operation depreciation on own fixed assets will be charged as per policy of the 97,111,111 5,000,000
Company in line with its parent Company.
Cost of Membership License represents the amount by which the License was initialy obtained and addition by
2.7 Accrued expenses, provisions and other payables revaluation was made as per valuation report of Vigilant Survey Associates on October 15, 2009.
As per BAS 37 “Provisions, Contingent Liabilities and Contingent Assets”, a provision is recognized only when a
past event has created a legal or constructive obligation, an outflow of resources is probable, and the amount of 5 Fixed assets
the obligation can be estimated reliably. Amount recognized as a provision is the best estimate of settlement
amount at balance sheet date.
Cost:
2.8 Deferred revenue expenses Balance as on 1st January 57,175 57,175
All expenses incurred in formation of the Company as well as all revenue expenditures incurred sine Add: addition during the year - -
incorporation of the Company till December 31, 2009 are recognized as pre-operating expenses. Once the Less: disposal during the year - -
Company starts its operations all these expenses will be amortized as per decision of the Board of Directors

2.9 Tax provision Balance as at December 31 57,175 57,175


Since the Company has no profit till December 31, 2009 so is no provision for income tax has been made.
Since the company has no revenue generating activities, therefore depreciation on fixed assets has not been
2.10 Cash and cash equivalents charged.
Cash comprises cash in hand and cash at bank. Cash equivalents are short term, highly liquid investments that
are readily convertible to a known amount of cash which are subject to an insignificant risk of change in value. 6 Other assets

2.11 Reporting currency


Advance, deposit and Prepaid expenses (note-6.1) 3,000 3,000
The financial statements are presented in Bangladeshi Taka which is the Company's functional currency.
Deferred expense (note-6.2) 357,241 291,183
Others 360,241 294,183
a. The Financial Statements have been prepared for the first time after transfer of shareholding and therefore
comparative figures for December 2008 are un-audited. 6.1 Advances, deposits and prepayments

b. Figures in the financial statements and notes have been rounded off to the nearest taka.
Advances income tax 1,000 1,000
Security deposit with BTTB 2,000 2,000
3,000 3,000

144
Notes to the Financial Statements - continued… Notes to the Financial Statements - continued…

(Figures in BDT) (Figures in BDT)


2009 2008 2009 2008
6.2 Deferred revenue expenses 8.1 Issued, subscribed & paid up 10,000,000 10,000,000

Balance as on 1st January 291,183 285,160 100,000 nos. of ordinary shares of taka 100 each fully paid.
Deferred revenue expenses 198,646 192,623
Preliminary expenses 92,537 92,537 Composition of shareholdings
Add: addition during the year (note-6.2.1) 66,058 6,023
Particulars No. of shares % of holding Amount
Balance as at December 31 357,241 291,183
a) Corporate 99,997 99.997 9,999,700
6.2.1 Addition during the year represents International Leasing Securities Ltd. 99,997 99.997 9,999,700

Annual subscription for CSE 20,000 - b) Individual 3 0.003 300


Audit fee and other fees 44833 5,000 Mr. Jamal Uddin Ahmad 1 0.001 100
Bank charges 1,225 1,023 Mr. Mizanur Rahman 1 0.001 100
66,058 6,023 Mr. Sajidur Rahman Khan 1 0.001 100
Total 100,000 100.00 10,000,000
Deferred revenue expenses represent all expense of revenue nature of the Company incurred since
incorporation to 31-12-2009 and the preliminary expense represents the Registration cost of the Company 9 Revaluation surplus - CSE Membership 92,111,111 -
with the Registrar of Joint Stock Companies and Firms. Once the Company starts revenue generation all this
expenses will be amortized as per decision of the Board of Directors of the Company.
This represents surplus arises on revaluation of Membership License of Chittagong Stock Exchange Limited. The
revaluation was made by Vigilant Survey Associates, Chittagong on October 15, 2009.
7 Payables & accrued expenses
10 Event after balance sheet date
Payable to director - old 20,000 -
Audit fee 26,125 5,000
Subsequent to the Balance Sheet date the Company has changed its registered office from "National House (1st
46,125 5,000 floor), 109 Agrabad C/A, Chittagong" to "Printers Building (14th floor) 5, Rajuk Avenue, Dhaka - 1000".

Payable to director represents the amount received from one of the previous directors to meet immediate expense 11 Approval of the financial statements
of the company. This amount has been paid subsequently to the director.
These financial statements were authorised for issue by the Board of Directors of the Company on April 06, 2010.
8 Share capital

Authorised 85,000,000 85,000,000

850,000 nos. of ordinary shares of taka 100 each


Mizanur Rahman Mustafizur Rahman Nehal Ahmed Rafiqul Islam
Chairman Director Managing Director Company Secretary

146
December 31,
Annexure - 1

(Figures in BDT

57,175

57,175

57,175
Written down
value as at

2009
December 31,
Balance as at
CORPORATE INFORMATION

2009

-
-

-
Adjustment
Legal Status : Public Limited Company

during the
Year
Date of Incorporation : January 15, 1996

-
-

-
DEPRECIATION
Date of Enlistment with
during the Dhaka Stock Exchange and
Charged

Year
Chittagong Stock Exchange : September 16, 2007

-
-

-
Registered Office : Printers Building (14th floor),
HONGKONG BANGLADESH SECURITIES LIMITED

5, Rajuk Avenue, Dhaka-1000, Bangladesh


Balance as at
January 01,
2009

Branch Office : Ayub Trade Center (1st floor), 1028/B Agrabad C/A,
-
-

Chittagong-4100, Bangladesh.
Branch Office (proposed) : Firoz Center, Chowhatta, Sylhet.
Rate
(%)
as at December 31, 2009

Branch Office (proposed) : Amir Market, Khatunganj, Chittagong.


Schedule of fixed assets

Accounting Year End : December 31


December 31,
Balance as at

No. of Employees : 86 (including 32 of subsidiary company)


2009

-
-

Auditor : Zoha Zaman Kabir Rashid & Co.


Chartered Accountants
during the
Disposal

Legal Adviser : Hasan and Associates


Year

-
-

Company Secretary : Mr. Nehal Ahmed FCA


COST

Subsidiary Company : International Leasing Securities Limited (ILSL)


during the
Addition

Printers Building (3rd floor),


Year

-
-

5, Rajuk Avenue, Dhaka-1000, Bangladesh


Sub-Subsidiary : HongKong Bangladesh Securities Limited
57,175

57,175

57,175
Balance as at
January 01,

Printers Building (14th Floor)


2009

5, Rajuk Avenue, Dhaka-1000, Bangladesh


Stock Exchange Membership (ILSL) : Dhaka Stock Exchange Limited
Chittagong Stock Exchange Limited
Furnitures & fixtures

Total as at December 31, 2009

Total as at December 31, 2008


Particulars

148
INTERNATIONAL LEASING ANNUAL REPORT 2009
NOTES

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150
International Leasing and Financial Services Limited
Proxy Form

Revenue
Stamp