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									                                                                                  Howladar Yunus & Co.
                                                                                  Chartered Accountants

         INTERNATIONAL FINANCE INVESTMENT AND COMMERCE BANK LIMITED
                                   Balance Sheet
                              As at December 31, 2008

                                                                     2008                2007
PROPERTY AND ASSETS                                       Note       Taka                Taka
Cash                                                       3      3,340,418,678       3,593,513,841
In hand (including foreign currency)                               620,428,180          628,093,668
Balance with Bangladesh Bank and its Agents Bank
                                                                  2,719,990,498       2,965,420,173
(including foreign currency)
Balance with other banks and financial institutions        4      1,919,068,652       2,359,077,889
In Bangladesh                                                     1,565,824,472       2,181,954,553
Outside Bangladesh                                                  353,244,180         177,123,336

Money at call and short notice                             5         70,000,000                 -
Investments                                                6      5,237,901,756       3,855,691,124
Government                                                        4,267,972,141       3,161,528,047
Others                                                              560,761,209         190,485,220
Outside Bangladesh                                                  409,168,406         503,677,857

Loans and advances                                         7     33,018,385,382      28,361,456,225
Loans, cash credits, overdrafts, etc.                            30,211,825,472      24,792,513,205
Bills discounted and purchased                             8      2,806,559,910       3,568,943,020
Fixed assets including premises, furniture and fixtures     9       511,452,828         383,075,972
Other assets                                               10     1,640,263,398       1,361,334,367
Non Banking Assets                                                          -                   -
Total assets                                                     45,737,490,694      39,914,149,418

LIABILITIES AND CAPITAL
Liabilities
Borrowing from other banks, financial Institutions and
agents                                                     11      203,530,016        1,105,237,195
In Bangladesh                                                      203,530,016        1,105,237,195
Outside Bangladesh                                                         -                    -
Deposit and other accounts                                 12    36,092,169,540      29,900,052,990
Current deposits and Other accounts                               5,398,152,070       4,939,240,851
Bills payable                                                     1,014,004,246       1,007,645,052
Savings bank deposits                                             6,448,647,253       6,025,272,603
Term deposits                                                    23,231,365,971      17,927,894,484
Other liabilities                                          13     6,241,055,341       6,295,077,124
Total liabilities                                                42,536,754,897      37,300,367,309
Capital / Shareholders' equity
Paid up capital                                            14     1,341,431,400         670,715,700
Statutory reserve                                          15     1,215,504,476         952,042,336
Other reserve                                              16        82,705,897         153,062,907
Surplus in Profit and Loss Account                         17       561,094,024         837,961,166
Total shareholders' equity                                        3,200,735,797       2,613,782,109
Total liabilities and shareholders' equity                       45,737,490,694      39,914,149,418




                                                   3
                                                                                       Howladar Yunus & Co.
                                                                                       Chartered Accountants

                                                                     2008                 2007
                                                       Note          Taka                 Taka
 OFF BALANCE SHEET ITEMS
 Contingent liabilities:
 Acceptances and endorsements                                      8,356,402,534        7,279,623,323
 Letters of guarantee                                   18         2,551,588,790        2,873,219,772
 Irrevocable letters of credit                          19         6,661,492,830        7,638,788,454
 Bills for collection                                   20         2,966,778,856        1,630,961,101
                                                                  20,536,263,010       19,422,592,650
 OTHER COMMITMENTS:
 Forward assets purchased and forward deposits placed                        -                    -
 Total                                                            20,536,263,010       19,422,592,650


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




 Chairman                       Director                       Director                Director




  Director                       Director                       Director                Director



  Director                       Director                       Director                Director




             Director            Mosharraf Hossain
                                 Managing Director

                              Signed as per annexed report on even date




HOWLADAR YUNUS & CO.                                          Dated: Dhaka
Chartered Accountants.                                        February 25, 2009




                                                   4
                                                                                           Howladar Yunus & Co.
                                                                                           Chartered Accountants
        INTERNATIONAL FINANCE INVESTMENT AND COMMERCE BANK LIMITED
                                Profit and Loss Account
                         For the year ended December 31, 2008
                                                                           2008               2007
 INCOME                                                       Note         Taka               Taka
 Interest income                                               22      3,515,483,197      2,774,571,822
 Less: Interest paid on deposits, borrowings, etc.             23      2,346,781,999      1,896,541,082
 Net Interest Income                                                   1,168,701,198        878,030,740
 Income from Investment                                         24       691,437,620        569,526,765
 Commission, exchange and brokerage                             25       874,123,199        754,827,143
 Other operating Income                                         26       442,911,096        291,334,496
 Capital gain                                                   27         2,430,784        806,234,009
 Total operating Income                                                3,179,603,897      3,299,953,153
 Salaries and allowances                                        28       933,701,010        924,533,262
 Rent, taxes, insurance, lighting and travelling                29       191,858,248        182,253,843
 Legal expenses                                                            2,559,040          5,253,932
 Postage, stamp, telegram and telephone                         30        46,276,778         49,015,059
 Auditors' fee                                                               513,500            463,100
 Stationery, printing and advertisement                         31        45,188,275         63,993,380
 Charges on loan loss                                                     69,284,885        353,757,391
 Managing Director's salary                                     32         4,590,000          2,580,000
 Directors' meeting fee                                         33         1,348,000          1,348,000
 Repair, maintenance and depreciation of assets                 34       148,544,175        137,075,614
 Other expenses                                                 35       113,429,288         76,751,627
 Total operating expenses                                              1,557,293,199      1,797,025,208
 Profit before provision                                               1,622,310,698      1,502,927,945
 Provision for adv.,other assets & off balance sheet items      36       305,000,000         38,000,000
 Profit before tax                                                     1,317,310,698      1,464,927,945
 Provision for tax:                                            13.5      660,000,000        500,000,000
 Current tax                                                             642,581,879        504,731,725
 Deferred tax                                                             17,418,121         (4,731,725)
 Profit after tax for the year                                           657,310,698        964,927,945
 Retained Profit brought forward                                         167,245,466        166,018,800
                                                                         824,556,164      1,130,946,745
 Appropriations
 Statutory reserve                                                       263,462,140       292,985,589

 Retained earnings                                                       561,094,024       837,961,156
 Earnings Per Share (EPS)                                       44             49.00             71.93
          These financial statements should be read in conjunction with the annexed notes.


     Chairman          Director       Director           Director        Director          Director



      Director         Director       Director           Director        Director          Director



      Director                    Mosharraf Hossain
                                  Managing Director

                             Signed as per annexed report on even date



HOWLADAR YUNUS & CO.                                                  Dated: Dhaka
Chartered Accountants.                                                February 25, 2009
                                                     5
                                                                                                 Howladar Yunus & Co.
                                                                                                 Chartered Accountants


              INTERNATIONAL FINANCE INVESTMENT AND COMMERCE BANK LIMITED
                                       Cash Flows Statements
                               For the year ended December 31, 2008

                                                                                  2008                  2007
Particulars
                                                                   Notes          Taka                  Taka
Cash flows from operating activities
Interest received in cash                                                       3,515,483,197        2,774,571,822
Interest payments                                                              (2,346,781,999)      (1,896,541,082)
Dividend received                                                                  21,382,901            1,056,000
Fees and Commission received in cash                                              851,575,683          754,789,575
Recovery of loans and advances in cash previously written-off                     193,474,076           97,469,840
Cash paid to employees                                                           (854,291,010)        (755,113,262)
Cash paid to suppliers                                                                    -                    -
Income tax paid                                                                  (243,128,900)        (276,868,764)
Cash received from other operating activities                        37           944,470,038        1,568,606,998
Cash paid for other operating activities                             38          (460,160,502)        (434,449,939)
Cash flows before charges in operating assets and liabilities                   1,622,023,484        1,833,521,188
Increase / Decrease in operating assets and liabilities
Loans and advances to Customers                                                (5,164,291,807)      (3,323,931,558)
Other assets                                                          40          (35,800,131)         (97,686,459)
Deposits from other Banks                                                             392,000          (21,882,000)
Deposit from customers                                                          6,191,724,551        1,301,021,452
Trading Liabilities                                                              (890,000,000)         830,000,000
Other Liabilities                                                     41         (742,350,274)         129,564,133
Net cash from operating activities                                               (640,325,661)      (1,182,914,432)
Cash flows from investing activities
Proceeds from sale of securities                                                 123,000,000            73,000,000
Cash payments for purchase of securities                                        (275,766,539)         (135,236,727)
Purchase/ Sale of Property, Plant & equipment of fixed assets                   (210,884,411)         (125,636,544)
Sales of fixed assets                                                                    -                     -
Net cash from investing activities                                              (363,650,950)         (187,873,271)
Cash flows from financing activities
Received from issue of loan, capital and debts security                                  -              13,771,507
Payments for redemption of loan capital and debt security                        (11,707,179)          (16,057,135)
Net Cash from Financing activities                                               (11,707,179)           (2,285,628)
Net increase in cash and cash equivalent                                         606,339,694           460,447,857
Opening cash and cash equivalent                                               8,886,119,777         8,425,671,920
Closing cash and cash equivalent                                     39        9,492,459,471         8,886,119,777

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



Chairman            Director                 Director                      Director                 Director



Director            Director                  Director                     Director                 Director



Director            Director                  Director              Mosharraf Hossain
                                                                      Managing Director

                                   Signed as per annexed report on even date




HOWLADAR YUNUS & CO.                                                         Dated: Dhaka
Chartered Accountants.                                                       February 25, 2009
                                                         6
                                                                                                                                         Howladar Yunus & Co.
                                                                                                                                         Chartered Accountants

                        INTERNATIONAL FINANCE INVESTMENT AND COMMERCE BANK LIMITED
                                          Statement of Changes in Equity
                                              As at December 31, 2008

                   Particulars                      Paid up capital Statutory Reserve Other Reserve             Profit /Loss          Total
                                                         Taka              Taka           Taka                     Taka

Balance at January 01, 2008                               670,715,700           952,042,336     153,062,907       837,961,166      2,613,782,109
 Bonus share issued (2007)                                670,715,700                                             (670,715,700)               -
 Surplus /Deficit on account of revaluation on
Investment                                                        -                     -        (94,788,592)              -         (94,788,592)
Revaluation of Govt.Treasury bill & bond etc                                                      24,431,582                         24,431,582
Net Profit after Tax for the year                                 -                     -                -        657,310,698       657,310,698
Appropriations made during the year                               -             263,462,140              -        (263,462,140)               -

Balance as on December 31, 2008                       1,341,431,400           1,215,504,476       82,705,897      561,094,024      3,200,735,797

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




  Chairman              Director               Director                     Director              Director              Director




  Director             Director                Director                     Director              Director              Director




   Director                   Mosharraf Hossain
                              Managing Director                                               Dated: Dhaka
                                                                                              February 25, 2009


                                                                        7
                                                                                                                                                     Howladar Yunus & Co.
                                                                                                                                                     Chartered Accountants




                                      INTERNATIONAL FINANCE INVESTMENT AND COMMERCE BANK LIMITED
                                                          STATEMENT OF LIQUIDITY
                                                      (Asset and Liability Maturity Analysis)
                                                              As at December 31, 2008

                                                   Not More than       From 1 to 3        From 3 to 12        From 1 Year          From 5 Years
             Assets and Liabilities                                                                                                                      Total
                                                     1 Month             Month              Months             to 5 Years           and above
Assets:
Cash in hand                                          620,428,180                   -                -                    -                    -        620,428,180
Balance with other Banks         &     Financial
Institutions and Agents                              3,879,059,150        460,000,000        300,000,000                 -                    -       4,639,059,150
Money at Call & Short Notice                            70,000,000                -                  -                   -                    -          70,000,000
Investment                                             328,074,771         99,440,120        895,683,904       1,149,130,964        2,765,571,997     5,237,901,756
Loans & Advances                                     4,048,181,250      6,763,736,674      7,590,942,897       6,388,200,948        8,227,323,613    33,018,385,382
Premises & Fixed Assets                                  6,087,566         12,175,122         54,788,049         292,202,928          146,199,163       511,452,828
Other Assets                                           166,365,948        261,021,642        683,772,511         497,620,713           31,482,584     1,640,263,398
Total Assets                                         9,118,196,865      7,596,373,558      9,525,187,361       8,327,155,553       11,170,577,357    45,737,490,694
Liabilities:
Other Banks, Financial Institutions                    203,530,016                -                  -                    -                   -         203,530,016
Deposits and Other Accounts                          3,021,651,004      6,168,192,424     11,395,475,124        8,475,374,369       7,031,476,619    36,092,169,540
Provision and Other Liabilities                      1,231,500,762        486,209,126        840,985,785        1,346,226,904       2,336,132,764     6,241,055,341
Total Liabilities                                    4,456,681,782      6,654,401,550     12,236,460,909        9,821,601,273       9,367,609,383    42,536,754,897
Net Liquidity Gap: Surplus/(Deficit)                 4,661,515,083        941,972,008     (2,711,273,548)      (1,494,445,720)      1,802,967,974     3,200,735,797

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


  Chairman                 Director                  Director                  Director                     Director                Director




  Director                 Director                  Director                  Director                    Director                 Director




                   Director                                          Mosharraf Hossain                                           Dated: Dhaka
                                                                     Managing Director                                           February 25, 2009

                                                                                8
                                                                                                          Howladar Yunus & Co.
                                                                                                          Chartered Accountants


                                                                                             2008                 2007
                                                                                             Taka                 Taka
3.00 Cash:
     A. In hand:
     Local currency in hand                                                                 598,230,601          614,383,564
     Foreign currencies in hand                                                              20,621,179           12,269,904
     Cash with ATM                                                                            1,576,400            1,440,200
     Sub total                                                                              620,428,180          628,093,668
     B. Balance with Bangladesh Bank and its agents bank:
     Balance with Bangladesh Bank:
     Local currency                                                                       1,646,632,143         1,525,247,550
     Foreign currencies                                                                     510,957,455           985,964,872
                                                                                          2,157,589,598         2,511,212,422
    Balance with Sonali Bank:
    As agent of Bangladesh Bank                                                             562,395,671           439,588,619
    Other than agent                                                                              5,229            14,619,132
                                                                                            562,400,900           454,207,751
    Sub total                                                                             2,719,990,498         2,965,420,173
    Grand total                                                                           3,340,418,678         3,593,513,841
3.01 Cash Reserve Requirement (CRR) and Statutory Liquidity Ratio (SLR)
     Cash Reserve Requirement (CRR) and Statutory Liquidity Ratio (SLR) have been calculated and maintained in accordance
     with section 33 of Bank Companies Act 1991 and BCD circular no. 13 dated May 24, 1992 BRPD circular no. 12 dated Sep
     02, 1999 and BRPD circular no. 22 dated Nov 6, 2003 and BRPD circular no. 12 dated August 25, 2005.

3.02 Cash Reserve Requirement (CRR): 5% of Average Demand and Time Liabilities
     Required Reserve in amount                                                           1,811,690,000         1,503,026,600
     Percentage (%)                                                                          5.00%                 5.00%
     Average Reserve held in amount (Bangladesh Bank)                                     1,856,238,000         1,525,247,550
     Percentage (%)                                                                          5.12%                 5.07%
     Surplus                                                                                 0.12%                0'07%
3.03 Statutory Liquidity Ratio (SLR) 18% of average time and demand Liabilities(includes CRR)
     Required Reserve in amount                                                           6,522,085,000         5,410,895,760
     Percentage (%)                                                                           18%                  18%
     Actual Reserve held in amount                                                        7,097,428,135         5,754,457,884
     Percentage (%)                                                                         19.59%                19.14%
     Surplus / (Deficit)                                                                    1.59%                 1.14%
4.00 Balance with other Banks and Financial Institutions
     In Bangladesh (Note 4.1)                                                             1,565,824,472         2,181,954,553
     Outside Bangladesh (4.2)                                                               353,244,180           177,123,336
                                                                                          1,919,068,652         2,359,077,889
4.01 In Bangladesh
     Current Account
     Agrani Bank(CD A/C)                                                                     34,787,530           32,540,214
     Short Term Deposits
     AB Bank Ltd.                                                                               181,161               15,308
     Trust Bank Ltd                                                                           4,164,945            6,896,975
     Standard Chartered Bank Ltd                                                              5,417,257            2,502,056
     Beneficiary Owner ( B.O) A/c                                                            41,273,579                  -
                                                                                             51,036,942            9,414,339
    Fixed Deposits
    National Housing Finance                                                                 20,000,000            20,000,000
    Delta Brac Housing Finance Co.                                                                  -             100,000,000
    Bangladesh Finance and Investment Company (BFIC) Ltd.                                           -             100,000,000
    Mercantile Bank Ltd                                                                             -                     -
    Internatioal Leasing Finance                                                            200,000,000                   -
    NCC Bank Ltd.                                                                                   -                     -
    Bank Al Falah                                                                            50,000,000                   -
    Industrial Development & Leasing Company (IDLC) Ltd.                                     50,000,000           550,000,000
    United Leasing Company Ltd. (ULC)                                                               -             300,000,000
    Industrial Promotion & Development Com. Of Bangladesh Ltd. (IPDC)IPDC                           -             100,000,000
    Lanka Bangla Finance & Investment Ltd.                                                  100,000,000           240,000,000
    Investment Corp. of Bangladesh                                                          950,000,000           550,000,000
    First Security Bank Ltd                                                                 110,000,000           180,000,000
                                                                                          1,480,000,000         2,140,000,000
    Total                                                                                 1,565,824,472         2,181,954,553
                                                            15
                                                                                                                          Howladar Yunus & Co.
                                                                                                                          Chartered Accountants


                                                                                                            2008                  2007
                                                                                                            Taka                  Taka
 4.02 Outside Bangladesh
                                                                                  2008                                             2007
SL NO. NAME OF THE FOREIGN BANK / Correspondent   CURRENCY   AMOUNT IN              CONVERSION            AMOUNT IN              BALANCE
                                                                F.C.                     RATE                TAKA                IN TAKA
  1    AMERICAN EXPRESS BANK LTD., N.Y.             US$           275,759.37                    68.9200      19,005,335.78         79,752,176.00
  2    J.P. MORGAN CHASE BANK, NEW YORK             US$         1,355,579.71                    68.9200      93,426,553.61           7,993,840.00
  3    CITIBANK N.A. NEW YORK                       US$           393,698.82                    68.9200      27,133,722.67         28,870,922.00
  4    HSBC BANK , NEW YORK                         US$         1,287,703.67                    68.9200      88,748,536.94         77,803,122.00
  5    STANDARD CHARTERED BANK,LONDON               US$             30,318.29                   68.9200       2,089,536.55         10,842,922.45
  6    MASREQ BANK PSC, NEW YORK                    US$           186,519.41                    68.9200      12,854,917.74         (63,732,797.00)
  7    MASHREQ ASIA LTD., HONGKONG                  US$           169,957.06                    68.9200      11,713,440.58         23,387,988.00
  8    STANDARD CHARTERED BANK, N.Y.                US$         (1,194,721.61)                  68.9200      (82,340,213.36)       48,222,811.00
  9    WACHOVIA BANK N.A. NEW YORK                  US$             78,312.70                   68.9200       5,397,311.28                      -
  10   HSBC BANK, MUMBAI                            ACU$            26,226.57                   68.9200       1,807,535.20         (10,910,728.00)
  11   STANDARD CHARTERED BANK,KOLKATA              ACU$          397,449.54                    68.9200      27,392,222.30        (128,072,869.00)
  12   A.B. BANK LTD., MUMBAI                       ACU$          510,962.77                    68.9200      35,215,554.11           1,903,224.00
  13   NIB BANK LTD, KARACHI, PAKISTAN              ACU$         (240,580.02)                   68.9200      (16,580,774.98)         8,380,855.00
  14   NATIONS TRUST BANK LTD.,COLOMBO              ACU$            11,374.52                   68.9200         783,931.92           1,548,655.00
  15   N B B L , KATHMANDU, NEPAL                   ACU$            50,130.78                   68.9200       3,455,013.36           4,442,199.00
  16   SONALI BANK ,KOLKATA                         ACU$          135,902.44                    68.9200       9,366,396.16         10,210,657.00
  17   STATE BANK OF INDIA,KOLKATA                  ACU$            75,843.84                   68.9200       5,227,157.45           4,505,611.00
  18   AMERICAN EXPRESS BANK LTD.,KOLKATA           ACU$          100,454.47                    68.9200       6,923,322.07          (7,837,083.00)
  19   BANK OF BHUTAN,PHUENTOSOLING                 ACU$          134,214.05                    68.9200       9,250,032.33           2,200,710.00
  20   ICICI BANK LTD.                              ACU$         (398,750.99)                   68.9200      (27,481,918.23)       (39,581,684.00)
  21   HSBC BANK AUSTRILIA LTD.                     AUD                6,097.74                 47.3791         288,905.43           4,875,488.00
  22   J.P. MORGAN CHASE BANK, SYDNEY'58            AUD             26,417.10                   47.3791       1,251,618.42            (419,547.00)
  23   HSBC BANK CANADA,TORONTO                     CAD             89,349.99                   56.5521       5,052,929.57           4,688,283.00
  24   UBS, AG. , ZURICH                            CHF             38,848.94                   65.0680       2,527,822.83           4,794,185.00
  25   HABIB BANK AG , ZURICH                       CHF             49,172.00                   65.0680       3,199,523.70                      -
  26   COMMERZ BANK AG,FRANKFURT                    EUR           523,780.83                    96.2950      50,437,475.02         50,605,568.65
  27   VEREINS BANK AG, GERMANY                     EUR           253,506.04                    96.2950      24,411,364.12         10,966,329.00
  28   J.P.MORGAN CHASE BANK AG,FRANKFURT           EUR           256,734.93                    96.2950      24,722,290.08         35,355,363.00
  29   STANDARD CHARTERED BANK,LONDON               GBP           (10,232.69)                   99.6411       (1,019,596.49)          883,610.00
  30   HSBC BANK PLC, LONDON                        GBP             85,120.91                   99.6411       8,481,541.11           4,680,383.00
  31   BANK OF TOKYO- MITSUBISHI,TOKYO              JPY           661,003.00                     0.7605         502,692.78            763,440.00
       TOTAL :                                                  5,366,154.18                                353,244,180.06        177,123,336.10


 4.03 Maturity grouping of Balance with other banks
      On demand                                                                                             439,068,652           219,077,889
      Less than three months                                                                              1,180,000,000         1,260,000,000
      Over three months but less than 1 year                                                                300,000,000           820,000,000
      More than one year but less than two years                                                                    -              60,000,000
                                                                                                          1,919,068,652         2,359,077,889

 5.00 Money at call and short notice
      National Bank of Pakistan                                                                             50,000,000                      -
      Bank Asia Ltd                                                                                         20,000,000                      -
                                                                                                            70,000,000                      -

 5.01 Maturity Grouping of Money at call and short notice
      On demand                                                                                             70,000,000                      -
      Less than Three months                                                                                       -                        -
      Over Three months but less than One year                                                                     -                        -
                                                                                                            70,000,000                      -




                                                               16
                                                                                  Howladar Yunus & Co.
                                                                                  Chartered Accountants


                                                                    2008                  2007
                                                                    Taka                  Taka
6.00 Investments :
     In Bangladesh
     Government Securities:
     3 year Bangladesh T & T Board treasury bond                            -             100,000,000
     Investment Corporation of Bangladesh debenture                  65,000,000            83,000,000
     House Building Finance Corporation debenture                    40,000,000            45,000,000
     National prize bond                                              8,559,600             5,657,500
     5 year government treasury bond                                939,141,964           723,471,585
     5 year government treasury bill                                        -                     -
     364 days government treasury bill                              350,743,601           320,040,476
     182 days government treasury bill                              349,819,933           295,821,343
     91days government treasury bill                                215,803,452           697,405,321
     28 days government treasury bill                                       -                     -
     30 days Bangladesh Bank bill                                           -                     -
     15 years government treasury bond                              311,400,000             4,000,000
     10 years government treasury bond                            1,987,503,591           887,131,822
                                                                  4,267,972,141         3,161,528,047
     Other Investments:
     Shares of Karma Sangsthan Bank Limited                          20,000,000           20,000,000
     Share of National Housing Finance & Investment Limited          23,500,000           20,000,000
     Central Depository (BD) Limited                                  4,000,000            4,000,000
     Power Grid Co. BD Ltd                                           30,519,913           30,519,913
     Delta Life Insurance Co. Ltd                                    22,110,000           22,110,000
     One Bank Ltd                                                     9,818,928            9,261,429
     Mercantile Bank Ltd                                             28,942,319           27,586,319
     NCC BankLtd                                                     18,625,377           10,503,660
     EXIM Bank Ltd                                                   38,207,325           36,056,124
     South East Bank Ltd                                             10,918,975           10,447,775
     AB Bank Ltd                                                     84,924,823                  -
     Meghna Petroleum Ltd                                            55,980,696                  -
     Jomuna Oil                                                      67,328,650                  -
     National Bank Ltd                                                9,533,939                  -
     Lanka Bangla Finance                                            11,361,264                  -
     Industrial Development & Leasing Company (IDLC) Ltd.            50,000,000                  -
     Dhaka Stock Exchange Ltd                                        74,989,000
                                                                    560,761,209           190,485,220
                                                                  4,828,733,350         3,352,013,267
     Outside Bangladesh:
     Shares of Nepal Bangladesh Bank Ltd.(Note-6.03)                163,845,225           194,526,000
     Shares of Oman International Exchange LLC (Note-6.04)           29,779,395            24,487,100
     Shares of Nepal Bangladesh Finance & Leasing Ltd.                      -               9,726,300
     Shares of NIB Bank Limited (Note-6.05)                         215,543,786           274,938,457
                                                                    409,168,406           503,677,857
                                                                  5,237,901,756         3,855,691,124




                                                             17
                                                                                                             Howladar Yunus & Co.
                                                                                                             Chartered Accountants


                                                                                               2008                  2007
                                                                                               Taka                  Taka
6.01 Cost and Market Value of Investments
                                                                                           Market/Present           Quoted/
                        Particulars                       Quantity            Cost
                                                                                              Value                Unquoted
    In Bangladesh
    Treasury Bills                                                 12        911,781,137       916,366,986             -
    Treasury Bonds                                                 31      3,193,768,240     3,238,045,555             -
    National Prize Bond                                        85,596          8,559,600         8,559,600             -
                                                                           4,114,108,977     4,162,972,141

    Debentures :
    Debentures - ICB                                                 4       65,000,000        65,000,000              -
    Debentures - HBFC                                                1       40,000,000        40,000,000              -
                                                                            105,000,000       105,000,000

    In Ordinary Shares :
    Shares of Karma Sangsthan Bank Limited                    200,000        20,000,000        20,000,000          Unquoted
    Share of National Housing Fin. & Inv. Limited             235,000        23,500,000        23,500,000          Unquoted
    Central Depository (BD) Limited                                 4         4,000,000         4,000,000          Unquoted
    Power Grid Co. BD Ltd                                      96,450        30,519,913        55,892,775           Quoted
    Delta Life Insurance Co. Ltd                                5,000        22,110,000        61,458,750           Quoted
    One Bank Ltd                                               27,875         9,818,928         9,282,375           Quoted
    Mercantile Bank Ltd                                        81,360        28,942,319        28,333,620           Quoted
    NCC BankLtd                                                51,925        18,625,377        18,991,569           Quoted
    EXIM Bank Ltd                                             107,562        38,207,325        34,796,469           Quoted
    South East Bank Ltd                                        23,562        10,918,975         7,492,716           Quoted
    AB Bank Ltd                                                67,120        84,924,823        55,189,420           Quoted
    National Bank Ltd                                           9,880         9,533,939        10,020,790           Quoted
    Meghna Petroleum Ltd                                      195,700        55,980,696        26,576,060           Quoted
    Jamuna Oil Ltd                                            190,400        67,328,650        27,284,320           Quoted
    Lanka Bangla Finance                                       52,500        11,361,264        10,321,500           Quoted
    IDLC Zero Coupon Bond                                          10        50,000,000        50,000,000          Unquoted
    1 Share of DSE Ltd.                                             1        74,989,000        74,989,000          Unquoted
                                                                            560,761,209       518,129,364
    Outside Bangladesh
    Shares of Nepal Bangladesh Bank Ltd.(Note-6.03)         1,845,000      163,845,225          537,412,338       Quoted
    Shares of Oman Int. Exchange LLC (Note-6.04)                1,664       29,779,395           29,779,395      Unquoted
    Shares of NIB Bank Limited (Note-6.06)                 24,578,800      215,543,786          100,658,948       Quoted
                                                                           409,168,406          667,850,681
    Total                                                                5,189,038,592        5,453,952,186
    Bank has made required provision for the entire shortfall amount (market price - cost price) during the year

6.02 Maturity Grouping of Investments
     On demand                                                                                   8,559,600             5,657,500
     Less than Three months                                                                    408,955,291         1,093,756,000
     Over three months but less than six months                                                945,683,904           489,526,000
     Over one year but less than five years                                                  1,044,141,964         1,017,194,000
     Over five years                                                                         2,830,560,997         1,249,557,624
                                                                                             5,237,901,756         3,855,691,124

6.03 Shares of Nepal Bangladesh Bank Ltd : Tk. 16,38,45,225
     Shares of Nepal Bangladesh Bank Ltd represents subscription towards 25% paid up capital of the Bank located in Nepal.
     Out of Total number of 7,441,260 share of the Bank, IFIC Bank owns 18,45,000 shares of NRS 100each. During the year no
     income has been received from this investment.Market value of the shares as at December 31,2008 was Tk. 53,74,12,338/-.


6.04 Shares of Oman International Exchange LLC: Tk. 297,79,395.
     Shares of Oman International Exchange LLC represents subscription towards 25% paid up capital of the company located
     in Muscat in the Sultanate of Oman.Out of total 6655 shares of the company, IFIC Bank owns 1,664 shares of RO 100 each.
     During the year an amount of Tk. 109,34,636 has been accounted for as income.

6.05 Shares of NIB Bank Limited: Tk. 21,55,43,786
     Shares of NIB Bank Ltd. represents subscription towards1.12% paid-up capital of the Bank located in Pakistan. Out of total
     number of 2,201,796,759 shares of the Bank of PKR 10 each, IFIC Bank owns 24,578,800 Shares. Market value of the above
     investment was Tk. 10,06,58,948 on 31.12.2008.
                                                            18
                                                                                                           Howladar Yunus & Co.
                                                                                                           Chartered Accountants


                                                                                             2008                  2007
                                                                                             Taka                  Taka

7.00 Loans and Advances                                                                   33,018,385,382        28,361,456,225
7.01 Loans, cash credits, overdrafts, etc.
     including bills discounted and purchased:

    In Bangladesh
    Loans                                                                                 21,156,906,210        17,792,166,854
    Cash credits                                                                           5,773,717,674         4,509,801,401
    Overdrafts                                                                             3,281,201,588         2,490,544,950
    Bill purchased ( Note: 8)                                                              2,806,559,910         3,568,943,020
                                                                                          33,018,385,382        28,361,456,225
    Out side Bangladesh                                                                              -                     -
                                                                                          33,018,385,382        28,361,456,225

7.02 Maturity grouping of loans and advance
     Repayable on demand                                                                   4,048,181,250         2,471,856,225
     Not more than 3 months                                                                6,763,736,674         4,224,200,000
     Over 3 months but not more than 1 year                                                7,590,942,897         9,462,300,000
     Over 1 year but not more than 5 years                                                 6,388,200,948         4,432,600,000
     Over 5 years                                                                          8,227,323,613         7,770,500,000
                                                                                          33,018,385,382        28,361,456,225

7.03 Concentrationof Loans Advances
     Loans and advances to Directors                                                              83,000                   -
     Advance to Managing Director, Executive & others                                        977,210,000           832,785,000
     Other Loan & Advances                                                                32,041,092,382        27,528,671,225
                                                                                          33,018,385,382        28,361,456,225

7.04 Loans and Advances allowed to each customer exceeding 10% of Bank's total capital:
     Number of customers                                                                              49                    48
     Amount of outstanding loans ( crore)                                                       2,549.58              2,459.43
     Classified amount thereon (crore)                                                             88.33                111.82
     (Annexure - A may kindly be seen for details)

7.05 Industry wise position of loans and advances including bills purchased and discounted.
     Agriculture Industries                                                                 541,052,112            241,298,000
     Jute Industries                                                                        225,164,884            224,281,000
     Textile Industries                                                                  2,769,801,123           2,460,101,000
     Garments Industries                                                                 6,081,654,779           5,401,850,000
     Chemical and Chemical Products                                                         240,431,859            136,770,000
     Cement Industries                                                                      206,530,549            174,200,000
     Bricks & Ceramic                                                                       162,917,728            167,296,000
     Glass Industries                                                                        27,370,391             40,456,000
     Food Products & Processing                                                             900,499,409          1,263,756,000
     Engineering & Metal                                                                 2,440,744,788           2,336,090,000
     Drugs & Pharmaceuticals                                                                148,461,883            161,847,000
     Leather Industries                                                                             -               15,943,000
     Paper & Paper Products Industries                                                      257,915,754            123,838,000
     Other Small Industries                                                                 716,601,687            155,704,000
     IT Sector                                                                              277,309,979            278,402,000
     Other Service Industries                                                               518,938,525            180,218,000
     Commerce & Trade                                                                    6,887,160,551           6,075,338,000
     Transport                                                                              230,201,025            364,756,000
     Construction Firms/Companies                                                        4,168,319,051           2,651,714,000
     Housing Societies/Companies                                                            236,804,183            751,050,000
     Cold Storage                                                                           191,852,196            203,197,000
     Non-Banking Financial Institutions                                                     322,283,240            123,968,000
     Consumer Finance                                                                    2,413,163,873             188,431,000
     Energy                                                                                 363,022,209            257,859,000
     Telecommunication                                                                      377,598,271            323,426,000
     Others                                                                              2,312,585,333           4,059,667,225
                                                                                        33,018,385,382          28,361,456,225
                                                           19
                                                                                                              Howladar Yunus & Co.
                                                                                                              Chartered Accountants


                                                                                                2008                  2007
                                                                                                Taka                  Taka
7.06 Geographical location-wise Loans and Advances:
     Dhaka                                                                                   24,007,324,184        20,308,266,848
     Chittagong Division                                                                      6,142,440,909         5,220,800,000
     Sylhet                                                                                     314,274,324           226,700,000
     Rajshahi Division                                                                        1,463,272,026           999,400,000
     Khulna                                                                                     988,283,041         1,545,800,000
     Barisal                                                                                    102,790,898            60,489,377
     Total                                                                                   33,018,385,382        28,361,456,225
7.07 Classification of Loans and Advances:
     Unclassified :
     (I) Standard                                                                            29,472,146,382        25,102,856,225
     (ii) Special mention account                                                             1,593,169,000           958,699,000
     Classified :
     (I) Substandard                                                                            752,006,000           318,404,000
     (ii) Doubtful                                                                              143,079,000           467,654,000
     (iii) Bad / Loss                                                                         1,057,985,000         1,513,843,000
                                                                                             33,018,385,382        28,361,456,225
7.08 Particulars of loans and advances:
   i) Loans considered good in respect of which the Bank is fully secured                    32,049,454,258        27,626,118,789
  ii) Loans considered good for which the Bank holds no other security than the debtors'
      personal security                                                                         77,435,212           198,583,352
 iii) Loans considered good being secured by personal security of one or more persons in
      addition to the personal security of the debtors                                          891,495,912           536,754,084
 iv) Loans considered doubtful or bad not provided for                                                  -                     -
                                                                                             33,018,385,382        28,361,456,225
   v) Balance of debts due by directors or officers of the bank or any of them either
      severally or jointly with any other person                                               977,210,000           832,785,000
  vi) Balance of Loans due by companies or firms in which the directors of the Bank are
      interested as directors, partners or managing agents or in the case of private
      companies as members                                                                         -                     -
 vii) Maximum total amount of advances, including temporary advances made at any
      time during the year to directors or employees of the Bank or any of them either
      severally or jointly with any other person                                              1,009,269,957          850,303,381
viii) Maximum total amount of advances, including temporary advances granted during
      the year to the companies or firms in which the directors of the Bank are interested
      as directors, partners or managing agents or in the case of private companies as
      members                                                                                           -                     -
   ix Due from bank companies                                                                           -                     -
  x)
     Classified loans on which no interest is charged:
     Opening balance                                                                          1,513,843,000           904,842,000
     Increase / Decrease                                                                       (455,858,000)          609,001,000
     Closing balance                                                                          1,057,985,000         1,513,843,000
     Amount of provision kept against loan classified as bad/loss
     on the date of preparing the balance sheet:                                               480,445,000           835,238,647
 xi) Amount of written off loan:
     Cumulative amount                                                                        8,710,159,434         8,202,796,784
     Amount written off during the year                                                         507,362,650           453,135,752
     Bank had written-off Tk.50,73,62,650, Tk 453,135,752; Tk 1,299,554,989; Tk 1,987,202,510; Tk 1,473,257,803 and Tk
     2,989,645,730 in the year 2008, 2007, 2006, 2005, 2004 and 2003 respectively. Out of total written-off amount of Tk
     871,01,59,434, suit has been filed for recovery of Tk 8,666,398,535 and for the balance amount of Tk 43,760,899 suit could
     not be field for becoming time barred.
     Tk.2188,03,000 Tk. 354,643,000 Tk 6,524,74,000 Tk 197,099,000 Tk 945,539,232.56 and Tk 108,954,034.35 in the year
     2008,2007, 2006, 2005, 2004 and 2003 respectively have been recoverred from written- off advances.
xii) Particulars of required provision for loans and advances:
     On unclassified                                                                            330,523,000        293,641,000
     On special mention accounts                                                                 76,881,000         46,541,000
     On substandard                                                                             103,779,000         37,160,000
     On doubtful                                                                                 46,336,000        109,535,000
     On bad / loss                                                                              480,445,000        823,547,000
     Required provision for loans and advances                                                1,037,964,000      1,310,424,000
     Total provision maintained (Note: 13.01+13.02)                                           1,068,160,515      1,326,366,231
     Excess or (short) provision as at 31st December 2008                                        30,196,515         15,942,231
                                                               20
                                                                                                           Howladar Yunus & Co.
                                                                                                           Chartered Accountants


                                                                                             2008                  2007
                                                                                             Taka                  Taka
 7.09 Gross lease rental receivable:
      Lease rental receivable within 1 year                                                  283,059,228          216,036,545
      Lease rental receivable within 5 years                                                 880,971,089          510,937,521
      Total lease rental receivable                                                        1,164,030,317          726,974,066
      Less: unearned lease rental                                                            267,958,565          162,465,888
      Net lease rental receivable                                                            896,071,752          564,508,178

     The amount represents the sum of total lease rental receivable which is shown under Loans and Advances.

 8.00 Bills discounted and purchased:
      In Bangladesh                                                                        2,290,526,303         2,993,398,978
      Outside Bangladesh                                                                     516,033,607           575,544,042
                                                                                           2,806,559,910         3,568,943,020

 8.01 Maturity grouping of Bills discounted and purchased:
      Payable with in 1 month                                                              1,401,731,179           660,730,270
      Over 1month but less than 3 months                                                     986,011,269           938,028,632
      Over 3 months but less the 6 months                                                    413,587,574         1,970,184,118
      Over 6 months or more                                                                    5,229,888                     -
                                                                                           2,806,559,910         3,568,943,020

 9.00 Fixed Assets including premises, furniture and fixtures:
      Furniture and fixtures                                                                 51,439,282            48,934,986
      Machinery and equipment                                                               338,323,681           318,711,638
      Vehicles                                                                               15,316,999            15,429,348
      Land & Building                                                                       106,372,866                   -
                                                                                            511,452,828           383,075,972

      (Annexure - B may kindly be seen for details)
10.00 Other Assets :
      Stationery and stamps                                                                   19,425,303            19,453,584
      Suspense account (Note: 10.01)                                                         167,527,685           162,468,975
      Advance, deposit and prepayments (Note: 10.02)                                         947,290,221           610,844,955
      Branch adjustment ( Note: 10.03)                                                       131,634,724           248,121,586
      FDBP-EPZ (Agrabad branch) Chittagong                                                    19,248,300            19,248,300
      Accrued interest on investment & other income receivable (Note: 10.04)                 338,886,384           291,136,670
      Rvluation A/C FDBP                                                                       7,237,792             8,034,651
      Rvluation A/C IDBP                                                                       9,012,989             2,025,646
                                                                                           1,640,263,398         1,361,334,367

10.01 Suspense account:
      Sundry debtors                                                                         23,586,532            26,184,131
      Advance against new branches                                                            3,054,200             2,880,000
      Advance against postage and telegram                                                        5,714                19,605
      Advance against TA / DA                                                                   901,280               312,196
      Law charges                                                                            37,647,780            38,064,879
      DD paid by cancellation                                                                    75,224                10,424
      Sanchaya patra paid                                                                    55,322,573            81,872,275
      Advance insurance premium                                                                 130,838                63,293
      Clearing adjustment (Dr)                                                                    4,880               286,503
      Wage earners development bond paid                                                     23,532,484             2,304,484
      Investment bond                                                                               -                 469,716
      CIB Charge                                                                                249,900               194,300
      Others                                                                                  1,412,345             1,436,954
      TMT & Money Gram Services                                                              21,603,935             8,370,215
                                                                                            167,527,685           162,468,975
10.02 Advance, Deposit and Prepayments:
      Advance rent                                                                           58,694,423           344,362,023
      Advance income tax                                                                    212,361,282           220,868,281
      Security deposit including demand note                                                  2,708,095             2,793,145
      DD paid without advice                                                                  7,736,804             2,968,489
      Advance against car purchase                                                           53,000,259            20,258,243
      Advance against lease property                                                                -                 412,750
                                                              21
                                                                                                            Howladar Yunus & Co.
                                                                                                            Chartered Accountants


                                                                                               2008                 2007
                                                                                               Taka                 Taka
      Protested bills                                                                          10,197,351            9,338,576
      Medical                                                                                     237,390              335,860
      Others                                                                                       68,040            1,502,788
      Cash remmittance                                                                         15,508,400            8,004,800
      Advance against IPO                                                                     228,978,200                  -
      Advance against land building                                                           355,689,977                  -
      Gift items                                                                                2,110,000                  -
                                                                                              947,290,221          610,844,955
10.03 Branch Adjustment::
      Branch Adjustment:account represents outstanding Inter- branch and Head Offfice transactions (Net) originated but yet to
      be responded by the balance sheet date.However, the un-respondent entries of 31.12.2008( position as of 31.01.2009) are
      given below:
                  Tenare                No of Unrespondent entries             No of Unrespondent entries (Amount)
                                            Dr.               Cr              Dr                        Cr
           Up to 3 month                    18                10           8,320,085                 7,46,234
           Over 3 months but
           within 6 months                   -                 3               -                        54,474
           Over 6 months                               -       1               -                         3,428
10.04 Accured interest on investment & other income receivable:
      Treasury bills                                                                                  -              2,753,910
      Bonds                                                                                   143,654,288           74,362,650
      Debentures                                                                               39,054,219           45,678,900
      Government for jute finance                                                              41,272,375           41,272,375
      Payment Against Documents (PAD)                                                          23,478,498           10,715,902
      Inland Documentary Bill Purchased (IDBP)                                                 11,003,637              587,356
      Others                                                                                   46,616,991           12,832,409
      FDR                                                                                      33,806,376          102,933,168
                                                                                              338,886,384          291,136,670
10.05 Classification of other Assets:
      Unclassified                                                                          1,393,576,398         1,222,468,367
      Substandard                                                                                     -                     -
      Doubtful                                                                                        -                     -
      Bad / Loss                                                                              246,687,000           138,866,000
                                                                                            1,640,263,398         1,361,334,367
10.06 Required provision for other Assets:
      Unclassified                                                                                     -                   -
      Substandard                                                                                      -                   -
      Doubtful                                                                                         -                   -
      Bad / Loss                                                                               246,687,000         138,866,000
                                                                                               246,687,000         138,866,000
      An amount of Tk. 8,245,903.84 has been made provision for unreconciled debit entries in NOSTRO Account.
10.07 Non-Income generating Other Assets
      Stationery and stamps                                                                    19,425,303           19,453,584
      Sundry debtors                                                                           23,586,532           26,184,131
      Advance against new branches                                                              3,054,200            2,880,000
      Advance against postage and telegram                                                          5,714               19,605
      Advance against TA / DA                                                                     901,280              312,196
      Law charge                                                                               37,647,780           38,064,879
      Advance Insurance premium                                                                   130,838               63,293
      Clearing Adjustment                                                                           4,880              286,503
      Investment bond                                                                                 -                469,716
      Advance against IPO                                                                     228,978,200                  -
      Advance against rent                                                                     58,694,423          344,362,023
      Advance income tax                                                                      212,361,282          220,868,281
      Security deposit (including demand note)                                                  2,708,095            2,793,145
      Advance against car purchase                                                             53,000,259           20,258,243
      Advance against lease property                                                                  -                412,750
      Protested bills                                                                          10,197,351            9,338,576
      Branch adjustment                                                                       131,634,724          248,121,586
      Accrued interest and other interest receivable                                          338,886,384          291,136,670
      FDBP - EPZ (Agrabad Branch)                                                              19,248,300           19,248,300
      Medical                                                                                     237,390              335,860
      CIB charge                                                                                  249,900              194,300
      Others                                                                                    1,480,385            2,939,742
                                                              22
                                                                                                           Howladar Yunus & Co.
                                                                                                           Chartered Accountants


                                                                                              2008                  2007
                                                                                              Taka                  Taka
     Cash remittance                                                                          15,508,400             8,004,800
     Revaluation A/c FDBP                                                                      7,237,792             8,034,651
     Revaluation A/c IDBP                                                                      9,012,989             2,025,646
     TMT & Moneygram                                                                          21,603,935             8,370,215
     Advance against land building                                                           355,689,977                   -
     Gift items                                                                                2,110,000                   -
                                                                                           1,553,596,313         1,274,178,695
11.00 Borrowing from other Banks, Financial Institutions and Agents:
      In Bangladesh
      The City Bank Ltd.                                                                            -              150,000,000
      Pubali bank Ltd                                                                       200,000,000                    -
      Bangladesh Bank                                                                         3,530,016             15,237,195
      Sonali Bank Ltd                                                                               -              200,000,000
      Agrani Bank Ltd                                                                               -              150,000,000
      BASIC Bank Ltd                                                                                -              200,000,000
      Dutch Bangla Bank Ltd                                                                         -              260,000,000
      National Bank Ltd                                                                             -              100,000,000
      Commerce Bank of Ceylon                                                                       -               30,000,000
                                                                                            203,530,016          1,105,237,195
     Outside Bangladesh                                                                             -                      -
                                                                                            203,530,016          1,105,237,195
11.01 Secured and unsecured of borrowing from other banks, Financial Institutions and
      agents
      Secured                                                                                       -                 -
      Unsecured                                                                             203,530,016          1,105,237,195
                                                                                            203,530,016          1,105,237,195
    * No borrowing has been made for which assets kept under pledged
11.02 Maturity grouping of borrowing from other banks,Financial Institutions and agents
      Payable on demand                                                                     200,000,000          1,090,000,000
      Others (Maturity)                                                                       3,530,016             15,237,195
                                                                                            203,530,016          1,105,237,195
12.00 Deposits and Other Accounts :
       From Banks                                                                              6,063,000             2,143,000
       Other than Banks:
       Payable on Demand                                                                  12,854,740,569         5,362,046,581
       Term deposits                                                                      23,231,365,971        24,535,863,409
                                                                                          36,086,106,540        29,897,909,990
                                                                                          36,092,169,540        29,900,052,990
     Current Deposits and Other Accounts:
     Current Deposit                                                                       3,403,974,858         3,000,735,117
     Sundry Deposit                                                                        1,388,611,386         1,323,536,984
     Foreign currency deposit                                                                575,207,244           608,015,810
     Resident FC deposit                                                                      25,933,607             5,286,361
     Cheque card                                                                                 513,691               564,281
     Investors' account (Cr balance)                                                             333,567               433,412
     Q-Cash                                                                                    3,577,717               668,886
                                                                                           5,398,152,070         4,939,240,851
     Bills Payable:
     In Bangladesh:
     Payment order                                                                           754,744,311           746,657,864
     Demand draft                                                                            111,608,478           109,463,162
     TT Payable                                                                              147,651,457           151,524,026
                                                                                           1,014,004,246         1,007,645,052
     Savings Bank Deposit                                                                  6,448,647,253         6,025,272,603
     Other term Deposits:
     Short term deposit                                                                    4,874,641,045         4,083,156,189
     Fixed deposit                                                                        15,771,366,876        10,978,285,927
     Non resident FC deposit                                                                 200,466,951           238,953,380
     Pension savings scheme                                                                2,086,674,413         2,545,979,608
     Monthly Income scheme                                                                    47,080,000            81,519,380
     Double Return Deposit Scheme                                                            241,596,146                   -
     Three Years Plus                                                                          9,540,540                   -
                                                                                          23,231,365,971        17,927,894,484
                                                                                          36,092,169,540        29,900,052,990
                                                            23
                                                                                                               Howladar Yunus & Co.
                                                                                                               Chartered Accountants


                                                                                                 2008                  2007
                                                                                                 Taka                  Taka
12.01 Maturity grouping of deposits and other accounts:
                                                                                                  2008                  2007
                                                                Bank        Other than Bank
                                                                                                  Taka                  Taka
      Repayable on demand                                       6,063,000     1,175,188,004    1,181,251,004         6,865,809,720
      Repayable on 1 month                                            -       1,840,400,000    1,840,400,000         6,038,968,267
      Over 1 month but within 6 months                                -      10,149,935,011   10,149,935,011         6,715,196,023
      Over 6 months but within 1 year                                 -       7,413,732,537    7,413,732,537         6,671,639,227
      Over 1 year but within 5 years                                  -       8,189,043,095    8,189,043,095         2,234,625,043
      Over 5 years but within 10 years                                -       7,297,718,261    7,297,718,261         1,373,814,710
      Unclaimed deposit for 10 years or more                          -          20,089,632       20,089,632                   -
                                                                6,063,000    36,086,106,540   36,092,169,540        29,900,052,990

13.00 Other Liabilities:
      Exporters F.C account                                                                    1,101,165,258         1,239,569,151
      Accrued expenses                                                                            20,950,607            16,133,477
      Provision for classified loans & Advance (Note-13.01)                                      651,852,515           984,016,231
      Provision for unclassified advances (Note-13.02)                                           416,308,000           431,308,000
      Provision for other assets & contingencies (Note-13.03)                                    256,857,848           181,857,848
      Interest suspense account (Note-13.04)                                                   2,271,557,170         2,418,095,091
      Foreign Demand Draft (FDD)                                                                  14,471,819            10,044,495
      Dividend payable                                                                             2,814,447             2,814,447
      Sundry deposit                                                                                     -              17,925,050
      Provision for taxation (Note-13.05)                                                        963,958,328           643,106,118
      FC deposit                                                                                         -               4,863,265
      Export development fund                                                                    164,582,515            81,906,851
      Gratuity                                                                                           -              70,491,033
      Provision for bonus                                                                         84,000,000           112,000,000
      Exporter's cash assistance                                                                     437,000            56,353,000
      Revaluation A/c (50%)                                                                       24,431,582            24,593,067
      Loan Pool                                                                                    1,884,262                   -
      Off Balance Sheet Provision (Note : 13.06)                                                 180,000,000                   -
      OIE (LLC)                                                                                   78,082,090                   -
      Foreign Trade Exchange Setlement A/c                                                         7,701,900                   -
                                                                                               6,241,055,341         6,295,077,124

13.01 Provision for classified loans & Advance:
      Provision held at the beginning of the year                                                984,016,231          970,767,867
      Fully provided debts written off / waiver                                                 (397,396,633)                 -
      Reschedule/re-insteadment from previously written off                                          232,917           13,248,364
      Excess provision transferred to provision for Unclasified Loans & Advance                  (30,000,000)                 -
      Specific provision for the year                                                             95,000,000                  -
      Provision held at the end of the year                                                      651,852,515          984,016,231

13.02 Provision for unclassified advances :
      Provision held at the beginning of the year                                               321,308,000           393,308,000
      Excess Provision trasferred from provision for classified loans & Advance                  30,000,000                   -
      Specific provision for the year                                                            65,000,000            38,000,000
      Provision held at the end of the year                                                     416,308,000           431,308,000

13.03 Provision for other Assets & Contigencies :
      Provision held at the beginning of the year                                               181,857,848           181,857,848
      Specific provision for the year                                                            75,000,000                   -
      Provision held at the end of the year                                                     256,857,848           181,857,848

13.04 Interest suspense account:
      Balance at the beginning of the year                                                     2,418,095,091         2,550,650,365
      Amount transferred during the year                                                         295,887,495           430,925,072
      Amount recovered during the year                                                          (400,907,399)         (461,295,293)
      Amount written off during the year                                                         (41,518,017)         (102,185,053)
      Balance at the end of the year                                                           2,271,557,170         2,418,095,091


                                                                24
13.05 Provision for Income Tax for the year 2008:
                                                                                                                            Howladar Yunus & Co.
                                                                                                                            Chartered Accountants


                                                                                                               2008                 2007
                                                                                                               Taka                 Taka
      Net business income (Domestic)                                   1,007,190,456                  45%     453,235,705          212,674,162
      Tax on :
           Dividend                                                       31,222,416                  20%       6,244,483                  -
           Capital gain (Overseas)                                                                    15%             -            120,935,100
           Capital gain (local)                                           29,515,604                   0%             -                    -
           Recovery from written - off advance                           193,474,076                   0%             -                    -
                                                                       1,261,402,552                          459,480,188          333,609,262
           Provision                                                     305,000,000                  45%     137,250,000           17,100,000
      Tax Provision for the year 2008                                                                         596,730,188          350,709,262
      Tax Provision for the earlier years                                                                      45,851,691          154,022,463
      Current Tax for the year                                                                                642,581,879          504,731,725
      Deffered Tax:
             Deffered Tax expenses due to decrease of deffered tax assets                    4,731,725
           Deffered tax expenses liability /(Assets)                                             17,418,121
                                                                                            12,686,396               (4,731,725)
      Provision made during the year                                                            660,000,000        500,000,000
      Balance for Tax provision for earlier years                                               303,958,328        143,106,118
                                                                                                963,958,328        643,106,118
      a) Thare is a shortfall in the provision as per Assessment of the Tax Authority for the yaer 2005 ( Assessment yaer 2006-
      2007) amounting to Tk. 86,983,447 of which an amount of Tk. 45,851,691 has been provided during the year 2008. The bank
      has already appealed against the assessment order.
      b) Thare is a shortfall in the provision as per Assessment of the Tax Authority for the yaer 2006 ( Assessment yaer 2007-
      2008) amounting to Tk. 2,444,795 but tax Authority impose Tax on Loan loss Tk. 39,738,015 (Loan loss 88,306,698 @ 45%).

13.06 Provision for off balance sheet exposure:
      Provision held at the beginning of the year                                                             110,000,000                    -
      Specific Provision for the year                                                                          70,000,000          110,000,000
      Provision held at the end of the year                                                                   180,000,000          110,000,000
14.00 Paid Up Capital :
      Authorized:
      16,000,000 ordinary shares of Tk. 100 each                                                            1,600,000,000         1,600,000,000
      Issued, subscribed and paid up:
      90,21,319 A class ordinary shares of Tk. 100 each fully paid                                            902,131,900          440,360,000
      43,92,995 B class ordinary shares of Tk. 100 each fully paid                                            439,299,500          230,355,700
                                                                                                            1,341,431,400          670,715,700
14.01 The issued, subscribed and paid up shares capital are as follows:
                                                                                           A' Class           B' Class                Total
                                            Particulars
                                                                                       Ordinary Shares Ordinary Shares
      As on December 31, 2008                                                                9,021,319       4,392,995                13,414,314
14.02 Distribution of paid up capital
                                                                2008                                            2007
            Holding of share       No of                     Total
                                                                      Percentage(%)     No of holder        Total shares        Percentage(%)
                                  holder                    shares
      Less than 500 shares          31363                   1,425,628         10.63               9003          1,575,243                 23.49
      501 to 5000 shares               435                    570,357          4.25                 209           282,689                  4.21
      5,001 to 10,000 shares            33                    236,994          1.77                  15           107,125                  1.60
      10,001 to 20,000 shares           27                    403,414          3.01                  25           394,584                  5.88
      20,001 to 30,000 shares           13                    323,525          2.41                  11           277,498                  4.14
      30,001 to 40,000 shares           13                    477,050          3.56                   6           199,741                  2.98
      40,001 to 50,000 shares            7                    319,562          2.38                   6           276,893                  4.13
      50,001 to 100,000 shares          10                    681,526          5.08                   4           285,576                  4.26
      100,001 to 1,000,000 shares       11                  2,916,285         21.74                   6         1,004,251                 14.97
      More than 1,000,000 shares         3                  6,059,973         45.17                   1         2,303,557                 34.34
                                   31,915                  13,414,314        100.00              9,286          6,707,157                100.00
14.03 Share holding by category
                                                               2008                                             2007
                Particular                  No. of Share      %        Taka          No. of Share               %              Taka
      Directors "A" class shareholders          666,408         4.97      66,640,800          366,652                5.47           36,665,200
      Govvt. "B" class shareholder            4,392,995        32.75     439,299,500        2,303,557               34.34          230,355,700
      Sponsors 'A' Class shareholder            795,145         5.93      79,514,500          483,938                7.22           48,393,800
      General public 'A' Class sharehoder     7,559,766        56.35     755,976,600        3,553,010               52.97          355,301,000
                                             13,414,314       100.00   1,341,431,400        6,707,157              100.00          670,715,700
                                                                            25
14.04 Capital Adequacy Ratio:
                                                                                     Howladar Yunus & Co.
                                                                                     Chartered Accountants


                                                                        2008                  2007
                                                                        Taka                  Taka
      Total Assets (including off-balance sheet items)              66,273,753,704        59,336,742,068
      Total Risk-weighted Assets                                    30,489,126,000        24,004,474,000

      Required Capital (10% of Risk-weighted Assets)                 3,048,912,600         2,400,447,400
      Actual Capital held                                            3,797,043,797         3,045,090,109
      Core-Capital (Tier I)                                          3,145,242,049         2,487,931,351
      a) Paidup capital                                              1,341,431,400           670,715,700
      b) Statutory Reserve                                           1,215,504,476           952,042,336
      c) General Reserve                                                27,212,149            27,212,149
      d) Retained earnings                                             561,094,024           837,961,166
      Supplementary Capital (Tier II)                                 651,801,748           557,158,758
      a) Exchange equilization reserve                                 31,062,166           125,850,758
      b) General provision on unclassified loans and advance          416,308,000           342,350,000
      c) General provision on off balance sheet item                  180,000,000            88,958,000
      d) Revaluation of Govt. Treasury bill & bond (50%)               24,431,582                   -
      Total Capital surplus/(deficit)                                 748,131,197           644,642,709
      Capital Adequacy Ratio                                          12.45%                12.69%
      Core Capital (2008: 5%)                                         10.32%                10.36%
      Supplementary Capital                                            2.13%                 2.33%

15.00 Statutory Reserve:
      Balance brought forward                                          952,042,336          659,056,747
      Transferred during the year                                      263,462,140          292,985,589
      Balance carried forward                                        1,215,504,476          952,042,336

16.00 Other Reserve:
      General reserve                                                  27,212,149            27,212,149
      Exchange equalization fund                                       31,062,166           125,850,758
      Revaluation of Govt. treasury bill (50%)                         24,431,582                   -
      Total                                                            82,705,897           153,062,907

17.00 Surplus in Profit and Loss Account:
      Balance brought forward                                          837,961,166           166,018,800
      Bonus share issued (2007)                                       (670,715,700)                  -
      Net profit after Tax                                             657,310,698           964,927,945
      Excess amount transferred from paid up capital                           -                      10
      Appropriation made during the year                              (263,462,140)         (292,985,589)
      Balance carried forward                                          561,094,024           837,961,166

17.01 Surplus in Profit and Loss Account:
      Profit before provision                                        1,622,310,698         1,502,927,945
      Less: Provision for loans and advances                          (305,000,000)          (38,000,000)
      Less: Provision for Income Tax                                  (660,000,000)         (500,000,000)
      Less: Statutory reserve                                         (263,462,140)         (292,985,589)
      Less: Proposed bonus share                                               -                     -
      Retained earning                                                 393,848,558           671,942,356
      Excess amount transferred from Paid-up Capital                           -                      10
      Retained profit brough forward                                   167,245,466           166,018,800
      Balance carried forwared                                         561,094,024           837,961,166

18.00 Letter of Guarantee:
      Directors                                                                -                     -
      Government                                                     2,303,605,454         2,314,143,138
      Banks and other financial institutions                            63,812,960            56,276,153
      Others                                                           184,170,376           502,800,481
      Total                                                          2,551,588,790         2,873,219,772

19.00 Letter of Credit:
      Letter of Credit (Cash)                                        2,728,376,332         3,492,113,233
      Letter of Credit (Othrs)                                         171,756,081            24,231,801
      Letter of Credit (Back to Back)                                3,761,360,417         4,107,014,658
      Letter of Credit (Inland)                                                -              15,428,762
            Total                                                    6,661,492,830         7,638,788,454
                                                               26
20.00 Bills for Collection:
                                                                                     Howladar Yunus & Co.
                                                                                     Chartered Accountants


                                                                        2008                  2007
                                                                        Taka                  Taka
      Inland Bills Receivable                                           73,169,259            92,595,186
      Foreign Bills Receivable                                           7,835,529             3,669,125
      Foreign Documentary Bills for Receivable                       2,092,994,592         1,228,365,978
      Inland Documentary Bills for Receivable                          792,779,476           306,330,812
           Total                                                     2,966,778,856         1,630,961,101

21.00 Income Statement:
      Income :
      Interest, discount and similar income                          4,185,537,916         2,774,571,822
      Dividend income                                                   21,382,901             1,056,000
      Fees commission and Brokerage                                    874,123,199           409,355,905
      Gains less loses arising from investment securities                      -             568,470,765
      Gain less losses arising from dealing in foreign currencies              -             345,471,237
      Other operating income                                           445,341,880         1,097,568,506
            Total                                                    5,526,385,896         5,196,494,235
      Expenses :
      Interest fee and commission                                    2,346,781,999         1,877,077,357
      Losses on loan and advances                                       69,284,885           353,757,391
      Administrative expenses                                        1,285,022,225         1,274,236,631
      Other operating expenses                                         113,429,288           106,790,295
      Depreciation on banking assets                                    89,556,801            81,704,616
            Total                                                    3,904,075,198         3,693,566,290
      Profit before tax and provision                                1,622,310,698         1,502,927,945

22.00 Interest Income:
      Term loan (industrial)                                           864,331,587           425,170,390
      Term loan (others)                                                24,360,551           256,784,945
      House building loan                                               52,907,715            35,679,846
      Staff house building loan                                         31,195,443            26,843,995
      Staff loan against PF                                             16,434,394            15,474,079
      Transport loan                                                    29,736,720            19,811,851
      Loan general                                                      45,488,146            39,307,751
      Secured overdraft                                                390,806,422           327,404,286
      Cash credit                                                      697,890,107           552,547,131
      Inland Bills Purchased (IBP)                                         203,874                31,220
      Inland Documentary Bill Purchased (IDBP)                         371,331,090           401,884,342
      Foreign Documentary Bill Purchased (FDBP)                             64,387               341,709
      Payment Against Document (cash)                                   68,068,533            54,049,732
      Payment Against Document (forced)                                 41,205,934            39,959,777
      Payment Against Document (EDF)                                    28,180,614            21,196,867
      Payment Against Document (INLAND)                                  1,256,822               609,893
      PAD (others)                                                       2,761,805             1,152,715
      Loan against imported merchandise                                 94,470,865            68,862,248
      Loan against trust receipt                                       384,271,462           249,045,092
      Export cash credit                                                36,660,045            27,110,623
      Q-cash card overdraft                                             10,581,147             1,344,021
      Money at call and short notice                                   150,285,303            47,270,517
      Balance held outside Bangladesh                                   10,706,711            29,798,443
      Consumers' credit scheme                                          15,257,670            13,596,372
      Others                                                            17,071,964               439,786
      Balance held inside Bangladesh                                    42,102,797            45,308,430
      Demand                                                               129,116               502,483
      NOSTRO                                                                   -               9,842,786
                                                                     3,427,761,224         2,711,371,330
      Rental income from lease                                          87,721,973            63,200,492
           Total                                                     3,515,483,197         2,774,571,822




                                                                27
23.00 Interest paid on Deposits, Borrowings, etc.
                                                                      Howladar Yunus & Co.
                                                                      Chartered Accountants


                                                         2008                  2007
                                                         Taka                  Taka
      Saving bank deposit                               291,649,691           259,770,252
      Short term deposit                                334,714,182           164,278,561
      Fixed deposit                                   1,416,522,854         1,171,462,812
      Non resident FC deposit                             4,375,907             4,705,960
      Resident FC deposit                                   606,051               221,487
      Pension savings scheme                            236,084,996           231,024,161
      Monthly income scheme                              19,892,176            13,955,676
      Call deposit                                       13,217,764            24,532,073
      Others                                             25,647,261             2,886,284
      Discount paid                                       1,510,286            20,771,752
      FCAD                                                2,560,831             2,932,064
            Total                                     2,346,781,999         1,896,541,082
24.00 Income from Investment:
      Profit from sale of shares                        27,084,820            88,614,857
      Dividend on share                                 21,382,901             1,056,000
      Prize bond                                           124,419                40,250
      Debenture                                          6,543,734             7,741,654
      Treasury bill/Treasury bond                      408,534,358           258,860,785
      Oman International Exchange LLC                   10,934,636            11,069,713
      FDR                                              209,194,180           188,489,935
      Reverse REPO                                       7,638,572            13,653,571
            Total                                      691,437,620           569,526,765
25.00 Commission, Exchange and Brokerage:
      Commission                                       470,137,776           409,318,338
      Exchange                                         381,437,907           345,471,237
      Brokerage                                         22,547,516                37,568
            Total                                      874,123,199           754,827,143
      Commission
      Bills purchased                                    3,294,360               344,145
      Remittances (Inland)                              52,746,251            44,727,522
      Remittances (foreign)                              8,990,350            10,122,882
       Letter of Guarantee (LG)                         21,910,925            15,271,843
      Letter of Credit (cash, barter/BB, WES)          198,273,324           181,673,782
      IFDBC,FDBC & LDBC                                147,303,396           122,118,660
      Loan against Imported Marchandise (LIM)              157,134               183,591
      Shares (subscription)                                266,490               371,721
      LC (Inland)                                        4,279,307               915,434
      Others (commission)                               24,881,302            23,603,803
      Com. On Sanchayapatra,reimbursement etc.           8,034,937             9,984,955
      Exchange
      Exchange gain from revaluation                    89,395,697           277,659,374
      Rebate from foreign correspondent                 21,939,143            17,660,000
      Exchange (others)                                270,103,067            50,151,863
      Brokerage
      Brokerage                                         22,521,171                37,246
      Others                                                26,345                   322
            Total                                      874,123,199           754,827,143
26.00 Other Operating Income
      Locker rent                                        4,807,956             4,158,961
      Godown rent & others                               2,042,333             2,418,925
      Postage charge recovery                           23,363,558            22,987,875
      Telex charge recovery                              2,396,787             3,311,112
      SWIFT recovery                                    34,339,851            32,132,649
      Incidental charge recovery                        15,751,016            13,819,799
      Legal charge recovery                                 33,621                   291
      Godown insurance recovery                            686,936               822,154
      Stationery expenses recovery                       2,678,284             2,608,599
      ATM recovery                                         565,870                   -
      Recovery on written off advance                  193,474,076            97,469,840
      Miscellaneous earning                             77,625,969            56,503,275
      Processing fee                                     3,805,035            11,646,881
      Others                                            81,339,804            43,454,135
            Total                                      442,911,096           291,334,496
                                                 28
                                                                                                              Howladar Yunus & Co.
                                                                                                              Chartered Accountants


                                                                                                 2008                 2007
                                                                                                 Taka                 Taka
27.00 Capital Gain                                                                                2,430,784          806,234,009
28.00 Salaries and Allowances:
      Basic pay                                                                      357,216,341        320,486,273
      House rent (rental)                                                                219,370          1,020,000
      House rent allowance                                                           148,986,002        136,129,263
      Conveyance allowance                                                            23,041,414         22,266,734
      Medical reimbursement                                                           35,062,909         28,995,388
      Entertainment                                                                   33,992,876         32,955,041
      Bonus                                                                          170,181,530        182,261,884
      PF (Bank's contribution)                                                        32,752,016         27,866,765
      Gratuity                                                                       111,718,555        153,075,192
      Others                                                                          20,529,997         19,476,722
            Total                                                                    933,701,010        924,533,262
      Number of employees for the year 2008 who were paid remuneration not more than Tk. 36,000 was nil. Number of
      employees employed in the Bank at the end of the year 2008 were 2,110.
29.00 Rent, Taxes, Insurance, Lighting and Travelling:
      Rent                                                                            92,298,810         93,544,448
      Rates, taxes and utilities                                                      20,402,950         17,234,459
      Insurance                                                                       31,691,721         26,721,640
      Lighting                                                                        18,321,100         16,855,318
      Travelling and conveyance                                                       29,143,667         27,897,978
            Total                                                                    191,858,248        182,253,843

30.00 Postage, Telephone and Telex:
      Postage                                                                                    13,546,930           12,042,381
      Telegram                                                                                       16,851               20,996
      Telex                                                                                          18,088              411,605
      Telephone (office)                                                                          9,963,220           12,549,523
      Telephone (residence)                                                                       7,058,685            7,864,883
      Reuter                                                                                      4,740,225            4,644,897
      Others                                                                                      1,832,020            2,481,121
      SWIFT Charges                                                                               9,100,759            8,999,653
                                                                                                 46,276,778           49,015,059
31.00 Stationery, Printing, Advertisement, etc.:
      Printing and stationery                                                                     6,551,833            9,667,580
      Security stationery                                                                         2,950,417            2,567,503
      Petty stationery                                                                            7,504,374            5,705,065
      Computer stationery                                                                         5,863,777            5,020,811
      Advertisement and publicity                                                                22,317,874           41,032,421
            Total                                                                                45,188,275           63,993,380

32.00 Managing Director's Salary:
      Basic                                                                                       2,150,000            1,800,000
      House Rent                                                                                    700,000                  -
      House Maintanance                                                                             475,000                  -
      PF (Bank's contribution)                                                                      215,000              180,000
      Entertainment                                                                                 650,000                  -
      Festival Bonus                                                                                400,000              600,000
            Total                                                                                 4,590,000            2,580,000
33.00 Directors fee:
      Meeting fees                                                                                1,348,000            1,348,000
      Other benefits                                                                                    -                    -
            Total                                                                                 1,348,000            1,348,000
      Each Director is paid Tk. 4000/- per meeting per attendance effective from May 09, 2006.

34.00 Repair, Maintenance and Depreciation of Assets:
      Depreciation                                                                                89,352,885           81,704,616
      Property Maintenance and repair                                                             30,115,671           35,498,308
      Vehicles maintenance and repair                                                             29,075,619           19,872,690
           Total                                                                                 148,544,175          137,075,614


                                                              29
35.00 Other Expenses:
                                                                                 Howladar Yunus & Co.
                                                                                 Chartered Accountants


                                                                     2008                2007
                                                                    Taka                 Taka
      Library expenses                                                  268,478              165,374
      Crockeries                                                        253,349              212,087
      Entertainment                                                   8,445,003            6,860,353
      Newspapers and periodicals                                        909,423              842,383
      Petrol, oil and lubricants                                     44,135,971           31,080,762
      Subscription and donation                                       4,798,786           11,676,937
      Uniforms and liveries                                             995,275            1,015,360
      AGM Expenses                                                   12,079,168            7,834,945
      Business Development                                            8,518,268            6,074,343
      Miscellaneous                                                  15,792,038            7,082,825
      Loss on sale                                                      421,941              826,429
      Premium on treasury bond                                        6,659,617            3,079,829
      Others                                                         10,151,971                 -
           Total                                                    113,429,288           76,751,627

36.00 Provision for loans and Advances:                             95,000,000                  -
      Provision for Unclassified Advances                           65,000,000           38,000,000
      Provision for Other Assets                                    75,000,000                  -
      Provision for off-Balance sheet items                         70,000,000                  -
                                                                   305,000,000           38,000,000
37.00 Cash received from other operating activities:
      Brokerage                                                     22,547,516                37,568
      Rent                                                           6,850,289             6,577,886
      Income from Investment                                       670,054,719           568,470,765
      Other receipts                                               242,586,730           187,286,770
      Capital gain                                                   2,430,784           806,234,009
            Total                                                  944,470,038         1,568,606,998
38.00 Cash paid for other operating activities:
      Postage, Telegaram & Telephone                                46,276,778           49,015,059
      Rent paid                                                     92,298,810           93,544,449
      Rate & taxes                                                  20,402,950           17,234,459
      Insurance premium paid                                        31,691,721           26,721,640
      Lighting                                                      18,321,100           16,855,318
      Stationery & printing                                         22,870,401           22,960,958
      Travelling expenses                                           29,143,667           27,845,978
      Auditors fee                                                     513,500              463,100
      Directors fee                                                  1,348,000            1,400,000
      Law charge                                                     2,559,040            5,253,932
      Other expenses                                               194,734,535          173,155,046
            Total                                                  460,160,502          434,449,939

39.00 Cash and cash equibilient :
      Cash in hand                                                 620,428,180           628,093,668
      Balance with Bangladesh bank & Sonali Bank                 2,719,990,498         2,965,420,173
      Balance with other banks and financial Institutions        1,919,068,652         2,359,077,889
      Money at call and short notice                                70,000,000                   -
      Govt. Securities                                           4,154,412,541         2,927,870,547
      Prize Bonds                                                    8,559,600             5,657,500
            Total                                                9,492,459,471         8,886,119,777

40.00 Other assets:
      Closing other assets                                        1,640,263,398       (1,361,334,367)
      Less: Opening other assets                                 (1,361,334,367)         986,779,144
      Less: Tax paid in cash                                       (243,128,900)         276,868,764
      Increase/(decrease) for the year                               35,800,131          (97,686,459)




                                                            30
41.00 Other liabilities:
                                                                                                              Howladar Yunus & Co.
                                                                                                              Chartered Accountants


                                                                                                 2008                 2007
                                                                                                 Taka                 Taka
      Closing other liabilities:
      Exporters' F.C. account                                                                 1,101,165,259         1,239,569,151
      Accrued expenses                                                                           20,882,879            26,624,510
      Interest suspense                                                                       2,279,259,070         2,418,095,091
      Others                                                                                  2,256,254,414         2,236,145,535
                                                                                              5,657,561,622         5,920,434,287
      Written-off                                                                               438,077,765            99,378,609
                                                                                              6,095,639,387         6,019,812,896
      Less: Opening other liabilities:
      Exporters' F.C. account                                                                  1,239,569,151          857,255,679
      Accrued expenses                                                                            26,624,510          102,188,976
      Interest suspense                                                                        2,418,095,091        2,550,650,365
      Others                                                                                   3,054,322,300        2,380,153,743
                                                                                               6,738,611,052        5,890,248,763
      Written-off                                                                                (99,378,609)                 -
                                                                                              (6,837,989,661)      (5,890,248,763)
      Increase/(decrease) for the year                                                          (742,350,274)         129,564,133
42.00 Gratuity:
      The company have a gratuity scheme which has been approved on October 2007 from the National Board of Revenue as
      per the provision of frist schedule (Part - C) of the Income Tax Ordinance, 1984. Total provision made against the gratuity
      upto December 31, 2008 is Taka 24,96,22,060/- against required provision of Taka 26,47,00,000/-. The rest of the amount
      shall be provided by bank within 2010.

43.00 Deferred Tax:
      Written down value of Fixed Assets as per accounts                                        511,452,828          383,075,972
      Less: Written down value of Fixed Assets as per Tax Authority                             483,260,838          393,590,916
      Taxable/(deductible) Temporary difference                                                  28,191,990          (10,514,944)
      Applicable Tax Rate                                                                              45%                  45%
      Deferred Tax Liability/ (Asset)                                                            12,686,396            4,731,725
      Closing deferred Tax Liability/ (Asset)                                                    12,686,396           (4,731,725)
      Less: Opening deferred Tax Liability/ (Asset)                                              (4,731,725)                 -
      Deferred Tax expenses/ (income)                                                            17,418,121           (4,731,725)
44.00 Earning Per Share(EPS):
      Net profit after tax                                                                      657,310,698          964,927,945
      Number of Ordinary shares outstanding (2007: Adjusted for bonus share)                     13,414,314           13,414,314
      Earning Per Share(EPS)                                                                          49.00                71.93
45.00 Reconciliation of Books of Accounts:
      A provision of Taka. 8,245,904 has been made against unreconciled debit entries in NOSTRO Accounts. Other books of
      accounts related to inter Bank (in Bangladesh and outside Bangladesh) and inter-branch entries are reconciled and there is
      no material difference which may affect the financial statements significantly.

46.00 Auditors' Work Hour
      The external auditor of the Bank, M/S. Howladar Yunus & Co., Chartered Accountants worked more than 4,000 man-hour
      at the Bank's Head Office and different branches. During their audit, they audited above 80% of the Bank's risk weighted
      assets as on the reporting date.
47.00 Related party disclosure:
      Please see annex - C for details.

48.00 Audit committee:
      Please see annex - D for details.



Chairman              Director                   Director                     Director            Director




Director               Director                      Director                  Director           Director




Director            Director              Director              Mosharraf Hossain          Dated: Dhaka
                                                                Managing Director          February 25, 2009
                                                                    31
                                                                                                             Howladar Yunus & Co.
                                                                                                             Chartered Accountants
       INTERNATIONAL FINANCE INVESTMENT AND COMMERCE BANK LIMITED
                             Position of Large Loans (More than 10% of the Total Capital)
                                               As on December 31, 2008
                                                                                                                      Annexure :A
                                                                                                                     (Taka in Crore)
SL#                     Name of the Client                               Outstanding balance as on                      Amount
                                                                              December 31, 2008                        Classified
                                                               Funded          Non-Funded            Total
 1                              2                                3                   4                5                    6
01.   ACE-SWEE HONG JOINT VENTURE                                     15.32                0.00              15.32                  0.00
      SOILTECH INTERNATIONAL LTD                                     162.06                0.10           162.16                    0.00
      WAHIDUNNABI                                                      4.91                0.00               4.91                  0.00
      SOILTECH INTERNATIONAL LTD. AND IJM                              6.33               12.86              19.19                  0.00
02.   SQ SWEATERS LIMITED                                             11.19                0.02              11.21                  6.83
      SWEATERS BOUTIQUE LTD                                            2.98                0.03               3.01                  0.00
03.   PADMA TEXTILE MILLS LTD.                                         0.67                0.34               1.01                  0.67
      BEXIMCO APPARELS LIMITED                                        36.88                0.54              37.42               36.88
      BEXIMCO KNITTING LTD.                                           41.89                0.00              41.89               41.89
04.   ISLAM BORTHERS PROPERTIES LTD.                                 142.81                0.00           142.81                    0.00
05    STYLO KNITWEAR (PVT) LTD.                                        8.10               26.21              34.31                  0.00
      STYLO FASHION GARMENTS LIMITED                                   4.94               25.88              30.82                  0.00
06.   NEW AGE FASHIONWEAR LTD.                                         0.51               22.82              23.33                  0.00
      NEW AGE GARMENTS LTD.                                            1.77               15.86              17.63                  0.00
      NEWAGE APPARELS LTD.                                             0.89               14.65              15.54                  0.00
07.   DEKKO KNITWEAR LTD.                                             17.14               54.40              71.54                  0.00
      EPYLLION KNITEX LTD.                                            14.07               30.00              44.07                  0.00
08.   TIFFINY'S WEAR LTD.                                              0.96                7.78               8.74                  0.00
      CONSUMER PRODUCTS LTD.                                           1.17               17.97              19.14                  0.00
      FOUR WINGS LTD.                                                  0.81                8.05               8.86                  0.00
      SAVILLE ROW LTD.                                                 0.51                6.23               6.74                  0.00
09.   ISLAM GARMENTS LTD.                                             42.27              148.08           190.35                    0.00
10.   SILVER LINE COMPUSIT TEXTILE MILL LTD                           54.49                9.42              63.91                  0.00
11.   SARKAR AND COMPANY (PVT) LTD.                                    7.75                0.00               7.75                  0.00
      RAZ COLD STORAGE (PVT.) LTD.                                    18.66                0.00              18.66                  0.00
12.   ZENITH PACKAGES LTD.                                             0.77                0.35               1.12                  0.00
      AEGIS COTTON MILLS LTD.                                         47.62               11.65              59.27                  1.53
13.   PACIFIC BLUE (JEANS WEAR) LTD.                                   4.62               15.64              20.26                  0.00
14.   SHAGORE GARMENTS LTD.                                            9.07               12.55              21.62                  0.00
      MINIMEX LTD.                                                     3.53                1.89               5.42                  0.53
      OPTIMUM LTD.                                                     6.61                5.43              12.04                  0.00
      THE ACCESSORIES LTD.                                             6.86                1.25               8.11                  0.00
15.   ORNATE KNIT GARMENTS IND'S LTD.                                  1.36                6.15               7.51                  0.00
      TITANIK PRODUCTS LTD.                                            0.89                1.94               2.83                  0.00
      TEX TOWN LTD.                                                   20.23               29.89              50.12                  0.00
      HOME GARDEN LTD.                                                 0.99                0.00               0.99                  0.00
16.   MISWAR HOSIERY MILLS(P) LIMITED                                  4.91               14.71              19.62                  0.00
      ABDUS SATTER.                                                    4.86                0.00               4.86                  0.00
      INTERNATIONAL DYASTUFF CORPORATION                               6.99                0.00               6.99                  0.00
      V-TEAC GARMENTS (PVT.) LTD.                                      0.07                2.47               2.54                  0.00
      SHAMEEM ENTERPRISE                                               7.93                7.65              15.58                  0.00
17.   ANWAR GALVANIZING LTD.                                          30.75                0.00              30.75                  0.00
18.   KNIT CONCERN LTD.                                               27.61               33.46              61.07                  0.00
19.   WISDOM ATTIRES LTD.                                             19.95               50.99              70.94                  0.00
20.   PHP FLOAT GLASS INDUSTRIES LTD.                                  2.74                0.00               2.74                  0.00
      PHP CONTINUOUS GALVANIZING MILLS LTD.                           18.29                0.00              18.29                  0.00
21.   SHAH DAIRY FOODS LTD.                                            0.00                0.98               0.98                  0.00
                                                          32
      ABUL KHAIR CONDENSED MILK & BEVERAGE                             0.32                1.75               2.07                  0.00
      SHAH CEMENT IND. LTD.                                            9.06               16.43              25.49                  0.00
                                                                       Howladar Yunus & Co.
                                                                       Chartered Accountants
      ABUL KHAIR STEEL PRODUCTS LTD.                 24.79     0.15     24.94         0.00
      ABUL KHAIR CONSUMAR PRODUCTS LTD.               1.95     1.16      3.11         0.00
      ABUL KHAIR MILK PRODUCTS LTD.                  14.48    16.21     30.69         0.00
22.   BENGAL SACK CORPORATION LTD.                   23.56     3.99     27.55         0.00
      T.K. GAS & GAS CYLINDER LTD.                    2.59     0.00      2.59         0.00
      PROGRESSIVE CONTAINERS LTD.                     2.36     0.00      2.36         0.00
      CHITTAGONG BAGS LIMITED                         8.18     0.44      8.62         0.00
23.   MAJUMDER TRADERS LIMITED                       10.49     1.66     12.15         0.00
24.   RAHMAN HOSIERY DYE.&FINI.MILL(PVT.) L           2.89     0.36      3.25         0.00
      RAHMAN & COMPANY                               14.72     0.00     14.72         0.00
      RAHMAN SPINING MILLS LTD.                       9.83     0.26     10.09         0.00
25.   MAZUMDER GARMENTS LTD.                          1.66    10.25     11.91         0.00
      MAJUMDER PACKAGES LTD.                          0.49     0.06      0.55         0.00
      MAJUMDER APPARELS LTD.                          0.61     2.86      3.47         0.00
      MAJUMDER FASHION LTD.                           1.86     0.02      1.88         0.00
      MAJUMDER KNITWEAR                               0.19     4.06      4.25         0.00
26.   HOPE PACKAGING LTD.                             0.34     0.00      0.34         0.00
      SONIA & SWEATERS LTD.                          10.32     2.96     13.28         0.00
      SONIA FINE KNIT LTD.                            3.85     0.88      4.73         0.00
      NABA KNIT COMPOSITE LTD.                        6.22     7.52     13.74         0.00
27.   SHIRT MAKERS LIMITED                            0.72     0.96      1.68         0.00
      SECTION SEVEN LIMITED                          22.18    74.21     96.39         0.00
28.   ISLAM KNIT DESIGNS LTD.                        28.49    16.46     44.95         0.00
29.   MARIUM TEXTILE MILLS LTD.                       4.74     0.00      4.74         0.00
      ZABER & ZUBVAIR FABRIES LTD.                   20.24     0.00     20.24         0.00
      TALHA SPINNING MILLS LIMITED                    0.00     5.58      5.58         0.00
30.   MAMUN ENTERPRISE                               10.90     0.00     10.90         0.00
      SHEEMA STEEL MILLS LIMITED                      7.54     0.00      7.54         0.00
31.   S.A.OIL REFINERY LIMITED                        0.00     7.00      7.00         0.00
      SAMANNAZ CONDENSED MILK LTD.                   31.72     5.09     36.81         0.00
      SUNRISE TRADERS                                 0.00     6.46      6.46         0.00
32.   CONSUMER KNITEX LTD.                           37.13    13.28     50.41         0.00
33.   SMAN FLEXBLE PACKAGING LTD.                    48.18     0.24     48.42         0.00
3.4   K.C. APPARELS LTD.                             22.70    38.99     61.69         0.00
35.   AZMAL HAQUE                                     9.95     0.00      9.95         0.00
36.   MOSTAFA PAPER PRODUCTS LTD.                     7.34     1.31      8.65         0.00
      MOSTAFA CORPORATION LIMITED                     8.34     0.00      8.34         0.00
      MONOWARA CORPORATION                            9.89     0.00      9.89         0.00
37.   ALI ENTERPRISE                                 40.56    22.31     62.87         0.00
38.   NAVANA REAL ESTATE LIMITED                     11.05     0.00     11.05         0.00
      NAVANA LTD                                     13.30     3.28     16.58         0.00
      NAVANA INTERLINKS LIMITED                       7.17     1.45      8.62         0.00
39.   BANGLADESH RURAL ADVANCE. COMMITTE(BR          44.79     0.00     44.79         0.00
40.   CASSIOPEA APPARELS LTD.                         7.27    51.79     59.06         0.00
      ELEGANT WASHING PLANT LTD.                      0.00     0.04      0.04         0.00
41.   CITY SUGAR INDUSTRIES LTD.                      5.60     0.00      5.60         0.00
42.   UNITED SUGAR MILLS LTD.                         0.00    20.76     20.76         0.00
43.   CHITTAGONG ISPAT                               44.01     0.00     44.01         0.00
44.   CELLULAR MOBILE (PTE) LIMITED                   7.74     0.00      7.74         0.00
45.   BENGAL PLASTIC INDUSTRIES LTD.                 40.67     1.67     42.34         0.00
46.   BSRM STEELS LTD.                                9.30     0.00      9.30         0.00
      BSRM STEELS LTD.                               20.57    13.36     33.93         0.00
47.   ABDUL MONEM LIMITED                            31.43     3.90     35.33         0.00
48.   KHAWJA AJMEER STEEL INDUSTRIES                 45.47     0.00     45.47         0.00
49.   TECHNO ELECTRICALS LTD.                         2.65    14.05     16.70         0.00
      TOTAL:                                       1578.13   971.45   2549.58        88.33
                                              33
                                                                                                                                                                    Howladar Yunus & Co.
                                                                                                                                                                   Chartered Accountants.

                                                INTERNATIONAL FINANCE INVESTMENT AND COMMERCE BANK LIMITED
                                                                      Fixed Assets Schedule
                                                                     As at December 31, 2008
                                                                                                                                                                                    Annexure - B
                                                                  Cost                                                                       Dpreciation                             Written
                                        As at          Addition          Sale/Adjust.              As at                     As at      Charged   Adjustment          As at        down value
Sl
                    Particulars      1st January       during              during              31st December     Rate %   1st January   during        during      31st December   as at 31 Dec.
No.
                                        2008           the year            the year                2008                      2008       the year     the year         2008            2008
                                        Taka             Taka                Taka                  Taka                      Taka         Taka         Taka           Taka            Taka

01    Wooden Furniture                   74,582,282        5,492,599          1,754,392             78,320,489       10    39,064,727    4,054,512    1,289,357      41,829,882       36,490,607
02    Steel Furniture                    30,256,959        2,394,618            110,060             32,541,517       10    16,839,528    1,574,773      45,736       18,368,564       14,172,953
03    Office Equipment                  412,526,493       66,585,415          2,672,042            476,439,866       20   194,809,928   56,801,172    2,375,921     249,235,179      227,204,687
04    Electrical & Gas Equipment        121,169,183       24,094,168          3,822,436            141,440,915       20    76,647,273   13,474,630    2,579,508      87,542,395       53,898,520
05    Improve & Leasehold Premises      100,441,028        8,120,094             63,950            108,497,172       10    45,003,950    6,354,618      52,961       51,305,607       57,191,564
06    Motor Vehicles                     52,454,251        3,764,500             59,500             56,159,251       20    37,024,903    3,829,250      11,900       40,842,252       15,316,999
07    Soft Furnishing                     8,707,555         309,897             494,875              8,522,577       40     7,671,470     536,422      489,948        7,717,944         804,633
;08 Land &Building                              -        109,100,376                -              109,100,376     2.50           -      2,727,509          -         2,727,509      106,372,867
Total As at 31.12.2008                  800,137,751      219,861,666          8,977,255          1,011,022,162            417,061,779   89,352,885    6,845,330     499,569,334      511,452,828
As at 31.12.2007                        674,501,206      152,110,708         26,474,163            800,137,751            367,062,155   81,704,616   21,704,991     417,061,779      383,075,972




                                                                                          34
                                                                       Howladar Yunus & Co.
                                                                       Chartered Accountants.
INTERNATIONAL FINANCE INVESTMENT AND COMMERCE BANK LIMITED
                        Financial Highlighits
                      As at December 31, 2008
                                                Taka in million
Sl.               Particulars
                                              2008           2007
01   Paid up Capital                                        1,341.43           670.72
02   Total Capital                                          3,797.04         3,045.09
03   Capital Surplus                                         748.13            644.64
04   Total Assets                                          45,737.49        39,914.15
05   Total Deposits                                        36,092.17        29,900.05
06   Total Loan & Advances                                 33,018.39        28,361.46
07   Total Contingent Liabilities & Commitments            20,536.26        19,422.59
08   Credit Deposit Ratio                                    91.48%            94.85%
09   Percentage of Classified Loan Against Total Loans &
     Advances                                                 5.92%             8.11%
10   Profit after Tax & Provision                            657.31            964.93
11   Amount of Classified Loans during the year             1,953.07         2,299.90
12   Provision Kept Against Classified Loans                 651.85            984.02
13   Provision Surplus/Deficit                                30.20              1.59
14   Cost of Fund                                             6.12%             6.58%
15   Interest Earning Assets                               39,806.29        35,520.23
16   Non-interest Earning Assets                            5,931.20         4,393.92
17   Return on Investment (ROI)                              13.59%            13.56%
18   Return on Assets (ROA)                                   1.44%             2.42%
19   Income from Investment                                  691.44            569.53
20   Earning per Share                                        49.00             71.93
21   Income per Share                                        411.98            774.77
22   Price Earning Ratio (Times)                              24.26             16.13




                                         42
(iii) Significant contracts where Bank is a party and wherein Directors have interest; Nil.

(iv) Shares issued to Director & Executives without consideration or exercisable at discount; Nil.

(v)   Related Party Transaction
                                                                                                   Amount in lac
      Sl.No. Name of Party                                       Related by   Direct Loan         Indirect Loan

         1      Mr.Syed Monjurul Islam                         Director                0.05
         2      Dr. Humaira Islam Khan                         Director                0.78
         3      Islam Brothers Properties Limited              Ex-Director       14,281.04
         4      Modern Industries (BD) Limited                 Ex-Director           964.05   *
         5      Bangladesh Leaf Tobacco Co. Limited            Ex-Director        2,471.37    *
         6      Agro Process (BD) Limited                      Ex-Director           608.63   *
         7      Sreepur Textile Mills Limited                  Ex-Director        3,306.40    *
         8      Beximco Apparels Limited                       Ex-Director        3,687.59                54.30
         9      Padma Textile Mills Limited                    Ex-Director            66.53               34.05
        10      Beximco Knitting Limited                       Ex-Director        4,188.49
        11      Beximco Holding Limited                        Ex-Director       13,778.01    *
        12      Mr. Khairul Kabir                              Ex-Director             4.00   *
        13      Soiltech International Limited                 Ex-Director       16,206.05                10.00
        14      Soiltech International Limited & IJM Engg. & Ex-Director
                Const. (Bhd) Joint Venture FRIP 5 Project                            633.81             1,286.27
             15 Navana Ltd                                     Ex-Director        1,331.30               327.86
             16 Navana Interlinks Ltd                                                715.96              143.97
         17 Navana Real Estate Ltd                             Ex-Director        1,105.31
      Total                                                                      63,349.37              1,856.45

      *Note: Amount has been written off


(vi) Lending policies to related parties;
     Lending to related parties is effected as per requirements of section 27 (1) of Bank companies Act'
     1991.

(vii) Business other than Banking business with any related concern of the Directors as per Section 18 (2) of
      Bank companies Act' 1991. NIL.


(viii) Investment in the securities of Directors and their related concern;   NIL.

								
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