Icab bpa award 2014

14

Integrity Transparency Accountability Governance

th

ICAB National Award giving ceremony for

Best Presented Annual Reports 2013 Dhaka • November 30, 2014

14

th

ICAB National Award giving ceremony for

BEST PRESENTED ANNUAL REPORTS 2013 Dhaka • November 30, 2014

Presented By

ICAB

30 November, 2014

The Institute of Chartered Accountants of Bangladesh

14

th

ICAB National Award giving ceremony for

Best Presented Annual Reports 2013 Dhaka • November 30, 2014

The Institute of Chartered Accountants of Bangladesh CA Bhaban 100 Kazi Nazrul Islam Avenue, Dhaka-1215, Bangladesh Tel: +880-2-9117521, 9115340, 9137847, Fax: +880-2-9125266 E-mail: secretary@icab.org.bd, Website: www.icab.org.bd

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14

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A n n u a l Re p o r t s

Dhaka • November

The Instit ute of Char Accountant s of Banglatered desh

2013

30, 2014

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14 TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

CONTENTS

DHAKA, BANGLADESH NOVEMBER 30 2014

04

The Council 2014

05

Review Committee for Published Accounts & Reports-2014

06

Address of Welcome

08

Foreword

09

Message

25

The Institute – A Brief Outline

28

Glimpses from ICAB National Awards

35

Adoption Status of IAS

36

Adoption Status of IFRS

38

Adoption Status of ISA

39

Evaluation Criteria (Banking)

44

Evaluation Criteria (Insurance)

48

Evaluation Criteria (General)

52

Evaluation Criteria (Public Sector)

54

Evaluation Criteria (NGOs)

58

Corporate Governance Disclosure Checklist

61

Winners for 14th ICAB National Awards

63

Summary of Previous Winners of ICAB National Awards

66

Profiles of Winnings Entities

108

Article

The Institute of Chartered Accountants of Bangladesh

The Council 2014 President Showkat Hossain FCA

Vice Presidents Kamrul Abedin FCA Dewan Nurul Islam FCA Nasim Anwar FCA

Council Members Akhtar Sohel Kasem FCA Masih Malik Chowdhury FCA Anwaruddin Chowdhury FCA

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

A. S. M. Nayeem FCA

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Dr. Md. Abu Sayed Khan FCA Abbas Uddin Khan FCA Muhammed Farhad Hussain FCA Md. Humayun Kabir FCA A F Nesaruddin FCA Muhammad Farooq FCA Nasir Uddin Ahmed FCA, FCS Md. Abdus Salam FCA Md. Syful Islam FCA Adeeb Hossain Khan FCA Md. Shahadat Hosssain FCA Gopal Chandra Ghosh FCA

Secretary-In-Charge A K M Rahmat Ullah FCA

Review Committee for Published Accounts & Reports (RCPAR)-2014 Chairman Abbas Uddin Khan FCA

Members Dewan Nurul Islam FCA Nasim Anwar FCA

Md. Jahidur Rahman FCA (860) Mohammed Jashim Uddin FCA (863) Muhammed Moshiur Rahman FCA (874)

Masih Malik Chowdhury FCA

Mohammed Forkan Uddin FCA (886)

Anwaruddin Chowdhury FCA

Md. Fokrul Islam FCA (890)

Muhammed Farhad Hussain FCA Nasir Uddin Ahmed FCA Md. Abdus Salam FCA Md. Syful Islam FCA Md. Nurul Haque FCA (195) Md. Anisur Rahman FCA (350) Ali Ashfaq FCA (509) Md. Shahjahan Majumder FCA (571) Haider Ahmed Khan FCA (576)

Mohammad Abdul Ohab Miah FCA (901) Md. Eftekhar Ali FCA (910) Mohammed Hamidul Islam FCA (912) Md. Abdur Rouf FCA (918) Mustaq Ahammed FCA (924) Md. Rokonuzzaman FCA (936) Mohammed Sabir Ahmed FCA (949) Md. Zakaria FCA (967) Mohammad Khairul Alam FCA (972)

Md Kamrul Hassan FCA (579)

Md. Yasin Miah FCA (1001)

Md Shafiqul Alam FCA (603)

Fouzia Haque FCA (1032)

Faroque Ahmed Khan FCA (618) Humayun Bokhteyar FCA (631) Md. Rafiqul Islam FCA (633)

Md. Zillur Rahman FCA (1040) Mohammad Nur Nobi ACA (1062) Mohammad Obaidul Islam Khan ACA (1075)

Sib Sankar Saha FCA (702)

Shahriar Istiaq Halim FCA (1083)

Md. Shah Alam Mridha FCA (733)

Manik Kumar Sarker ACA (1106)

Sabbir Ahmed FCA (770)

Mohammad Ibrahim Khalil ACA (1128)

Mohammod Masud Rana FCA (773)

Mohammad Aminul Haque ACA (1158)

Mohammad Monowar Hossain FCA (788) Md Monir Hossain Khan FCA (795) Mohammad Mohiuddin Ahmed FCA (800)

Rojina Akhter ACA (1206) Mohammad Touhidur Rahman ACA (1279) Mohammad Ali Kawsar ACA (1290)

Imran Ahmed FCA (827)

Md. Tazul Islam ACA (1296)

Mostafa Kamal FCA (829)

Md. Shohel Rana ACA (1383)

Masud Parvez FCA (835) Shafi Uddin Ahmed FCA (839) Mohammad Sayduzzaman FCA (855)

Kazi Shah Omar Faruk ACA (1422) Md. Arshadul Kabir ACA (1426) Md. Kazi Mahabub Murshed ACA (1430)

Member Secretary: Deputy Director (QAD)

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

Kamrul Abedin FCA

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PRESIDENT The Institute of Chartered Accountants of Bangladesh (ICAB)

30 November 2014

Address of Welcome

I

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

am immensely delighted to welcome you all in this celebrated event of the 14th ICAB National Award for 'Best Presented Annual Reports 2013'. I believe that this Award Giving Ceremony brings a sense of accomplishment among business entities or companies/organizations who truly want hard work reflected in their meaningful reports should gain due recognition. This is a great moment for all of us as the key traits of Good Corporate Governance - transparency and accountability unfold in Annual Reporting of the entities' as mark of their excellence.

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Since 2001, it is the continuous yearly effort of ICAB to recognize and reward the companies/ organizations of different sectors for their 'Duty of care' in preparing and presenting Best Presented Annual Reports. Initiatives of ICAB raise the awareness on corporate management beside gaining momentum in standard of knowledge, technical skills, professional competence, ethical issues and many more. Giving due weightage to their work, the annual reports of the participating entities have been evaluated in line with the Criteria based on the standards set by the South Asian Federation of Accountants (SAFA). Accordingly, the RCPAR looked at the Annual Reports of different entities meticulously through the process of competent, fair and transparent evaluation keeping the criteria and objective in mind.

I am confident that the award is expected to improve and enhance the obligation for good practices in Financial Reporting Auditing practices through adequate application of International Auditing and Financial Reporting Standards as adopted by ICAB. Due to notable improvements in presentation of Annual Reports of 2013, some entities did better than that of the previous years, which symbolizes a healthy competition among the entities. This is undoubtedly, an advancement torwards accountability, transparency and good governance.

Annual Reports of the winners of first, second and third positions in different categories would be nominated for the participation in the SAFA Forum to compete with those of SAFA Countries. It is noteworthy that ICAB nominated Annual Reports from Bangladesh are gaining the SAFA Awards in significant numbers every year. Hopefully, in this year the ICAB nomination would equally gain prestigious positions for their excellence by bagging more number of SAFA Awards.

As you might be aware that ICAB is the learning partners of the Institute of Chartered Accountants in England and Wales (ICAEW); ICAB is also compliant of the IFAC SMOs which covers Quality Assurance, International Education, Financial Reporting and Auditing Standards, Professional Code of Ethics. More so, recently, in recognition of ICAB's commitment, IFRS foundation has allowed ICAB to develop and publish Bangladesh Financial Reporting Standards (BFRS), Bangladesh Accounting Standards (BAS) and BFRS for SMEs using International Financial Reporting Standards (IFRS) and IFRS for SMEs as issued by the International Accounting Standards Board (IASB). In accordance with the terms of this agreement ICAB has entered into formal collaboration with the IFRS Foundation and has committed to a convergence path toward the full adoption of IFRS. It may be noted that ICAB is also working with the World Bank, National Board of Revenue, Bangladesh Bank, Office of Comptroller and auditor General of Bangladesh on professional issues, training and knowledge sharing to enhance the quality of Financial Reporting and Auditing in both Private and Public Sector. Such efforts of ICAB are increasing every year.

In this auspicious moment, I sincerely convey my heartiest congratulation to the winners of the 14th ICAB National Award for Best Presented Annual Reports 2013 and wish more success in their future endeavour. At the same time, my sincere thanks to every participating entities to make this competition challenging and meaningful one. I hope they will again come forward and succeed in coming years. ICAB will extend any technical support if sought in this regard.

To wrap up, I would like to convey my sincere thanks and gratitude to the Chief Guest and Special Guest for joining us. I am thankful to the Chairman, RCPAR-ICAB along with his team members for their hard work to complete the assignment successfully. At the same time, I would like to thank the ICAB officials for making this event a colourful one.

Showkat Hossain FCA

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

Allah Hafez.

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CHAIRMAN Review Committee for Published Accounts & Reports of the Council ICAB

30 November 2014

Foreword

T

he Institute of Chartered Accountants of Bangladesh is organizing 14th ICAB National Award for Best Presented Annual Reports of 2013 in a befitting manner as part of its noble duty to promote transparency and accountability in the financial disclosures. This Ceremony celebrates the occasion by declaring best Annual Reports on financial statements adjudging economic, value added reports of organization of different sectors like Banks, Public Sector Entities, NGOs, Manufacturing Industries, Non-financial Institutions and Corporate Sectors, Service Sectors.

The Annual Reports of the organization have been evaluated following the criteria formulated by the South Asian Federation of Accountants (SAFA) which recons the compliance of the entities in respect of adequate disclosures and meaningful reports on transparency, accountability, integrity ensuring good governance in the financial activities, business operation and corporate management.

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

Review Committee of ICAB diligently evaluated and assessed the Annual Reports of 2013 of the organizations objectively with the disclosures, information particularly within the framework of International Accounting Standards and IFRS as applied by the entities in the preparation of their financial statements and reports which are duly adopted and approved by Annual General Meeting within the stipulated time.

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The best Annual Report is the manifestation of business operation results of the entities reflected in their vision, mission, socio-economic achievements and corporate governance applying rules, regulations in meeting stakeholders' expectation and high level of professional and business ethics. It is pertinent to mention here that organizations adjudged as 1st, 2nd and 3rd are having the best of the best Annual Reports for the financial year 2013 would also be nominated for SAFA forum in recognition of their excellence and meaningful reporting. I can proudly make a mention here that in the last consecutive years, Bangladeshi entities have been securing remarkable positions among SAFA countries.

We on behalf of the ICAB would like to place on record our heartiest congratulation for their high quality reporting and presentation of achievements on financial and non financial activities. Annual Reports of Winners of the 14th ICAB National Award for the Best Presented Annual Reports are reckoned to be highly significant event in our country. We appreciate the companies/organizations for their role in promoting and contributing towards socio-economic reforms in the financial arena, providing valuable information to all stakeholders and concerned agencies in the country and abroad.

On behalf of the ICAB Council and RCPAR, I convey my heartiest felicitations to all recipients of the Awards. I express my appreciation and gratitude to the RCPAR members, particularly to all those who worked hard in the evaluation process, I am confident that with our concerted efforts, the award giving Ceremony is going to be a successful one.

Abbas Uddin Khan FCA

PRESIDENT Government of the People's Republic of Bangladesh 16 Agrahayan 1421 30 November 2014

Message

I

t gives me immense pleasure to know that the Institute of Chartered Accountants of Bangladesh (ICAB) is organizing the 14th ICAB National Award for Best Presented Annual Reports-2013 on 30 November 2014.

Transparency in the financial activities is indispensable to ensure better corporate discipline and to protect the interest of the stakeholders. The role of ICAB in evaluating the published accounts and reports is an appropriate and valuable exercise in that direction. I believe that the efforts of ICAB in evaluating the Annual Financial Reports would help promote transparency, accountability and corporate governance.

I congratulate the Award Winning Companies & Organizations and at the same time appreciate the endeavour of the organizer of the ceremony.

Md. Abdul Hamid

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

Khoda Hafez. May Bangladesh Live Forever.

09

PRIME MINISTER Government of the People's Republic of Bangladesh 16 Agrahayan 1421 30 November 2014

Message

I

am happy to learn that the Institute of Chartered Accountants of Bangladesh (ICAB) is going to organize the 14th ICAB National Award for Best Presented Annual Reports-2013 on 30 November 2014.

Accounting profession is valued around the globe for their expertise in financial management which plays an important role in generating government revenues as well as building confidence for investment. There has been growing demand for world-wide observance of corporate governance guidelines and ethical standards. Events like the 14th ICAB National Award for Best Presented Annual Reports-2013 will definitely pave the way for encouraging the entities for the best practice of the accounting and auditing standards according to the principles of the corporate governance.

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

I wish the ceremony of the 14th ICAB National Award for Best Presented Annual Reports-2013 a grand success.

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Joi Bangla, Joi Bangabandhu May Bangladesh Live Forever.

Sheikh Hasina

MINISTER Ministry of Finance Government of the People's Republic of Bangladesh

19 November, 2014

Message

I

welcome the 14th ICAB National Award for Best Presented Annual Reports-2013 on 30 November 2014 in Dhaka as organised by the Institute of Chartered Accountants of Bangladesh (ICAB).

ICAB has been playing a commendable role in celebrating this event since 2001. The Institute meticulously evaluates the Annual Financial Reports of all listed Companies in the Financial, Non-Financial, Manufacturing, Communications & Information Technology, Non-governmental Organizations and public Sector Entities. The criteria followed in this evaluation are strict and prepared under the guidelines of South Asian Federation Accountants (SAFA).

We believe that better corporate governance is needed for our economic growths. We want larger public participation in corporate financing from home and abroad. We want to demonstrate our concern for public aspiration.

Abul Maal A. Muhith, MP

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

I convey my warm felicitations to both the organizer of the Award Giving Ceremony and the Award Winning Companies and Organizations.

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MINISTER Ministry of Commerce Government of the People's Republic of Bangladesh

30 November 2014

Message

I

am indeed very glad to learn that the Institute of Chartered Accountants of Bangladesh (ICAB) is holding 14th ICAB National Award for Best Presented Annual Reports-2013 on 30 November 2014 in Dhaka.

Accounting Profession is the art of presenting financial information about a business entity to its users in the form of financial statements and top management of an entity is able to make best use of it.

Accounting professionals play very important role in bringing uniformity and discipline in financial reporting system. Accountants can think of a broader and innovative application of accounting standard beyond its traditional roles. I firmly believe that this is an important event to encourage the entities to pursue best practices of accounting and auditing standards and principles of corporate governance in their activities.

I hope that such efforts of ICAB will continue. I also congratulate everyone associated with this event and wish the 14th ICAB National Awards for Best Presented Annual Reports-2013 a grand success.

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

Joy Bangla, Joy Bangabandhu.

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Tofail Ahmed, MP

Comptroller and Auditor General of Bangladesh Government of the People's Republic of Bangladesh

Message

I

am pleased to learn that the Institute of Chartered Accountants of Bangladesh (ICAB) is organizing 14th ICAB National Award for Best Presented Annual Reports-2013 on 30 November 2014 in Dhaka.

Transparent accounting practices and authentic reporting are prerequisites for a healthy and sound economic environment while customers have a right to information on reliable financial data. ICAB as an apex body of accounting profession has been playing a dynamic role to upgrade the standards of published accounts and reports in Bangladesh. I believe that the reporters have professionally tried to analyze and reflect the best possible 'true and fair' picture in their presentation suitable for optimum usage by all stakeholders.

Masud Ahmed

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

I hope ICAB will continue its efforts for upgrading and improving the published Accounts and reports by the process of evaluation on the set criteria of the SAFA and thus earn growing credibility. I congratulate ICAB and the award winning companies/entities for their best published Accounts and Reports-2013.

13

GOVERNOR BANGLADESH BANK (Central Bank of Bangladesh)

18 November, 2014

Message

I

t is indeed a great pleasure to learn that the Institute of Chartered Accountants of Bangladesh (ICAB) is going to organize the 14th ICAB National Award for Best Presented Annual Reports -2013 on 30 November 2014 in Dhaka.

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

Good corporate practices rest on transparency in the system of accounting and reporting to the stakeholders, thereby, improve the standard of corporate governance to achieve a new level of excellence in the country. ICAB, a statutory self regulatory body of accounting professionals, is bearing the big responsibility of upgrading accounting and financial reporting standards and practices through providing leadership in the development enhancement and coordination of the Accountancy Profession in Bangladesh.

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The financial sector of Bangladesh has performed fairly well in supporting steady, stable and inclusive growth in the real economy, upholding its own systemic stability through episodes of domestic and external shocks, including the global financial crisis. Bangladesh Bank (BB) as the regulator of the financial sector has strengthened its guidance and supervision in ensuring stability in the financial sector. BB always encourages banks and financial institutions in practicing international best practices in functional activities. I would urge upon the ICAB as well as the entire accounting and auditing professionals to be more alert and inquisitive in preventing and ensuring necessary safeguards against dubious, unscrupulous accounting and auditing practices.

I hope that ICAB will continue this trend of awarding the entities for the best presented accounts and corporate governance disclosures in the days ahead. I wish the 14th ICAB National Award for Best Presented Annual Reports -2013 a splendid success.

Dr. Atiur Rahman, Ph.D

SENIOR SECRETARY Ministry of Commerce Government of the People's Republic of Bangladesh

26 November 2014

Message

I

am delighted that the Institute of Chartered Accountants of Bangladesh (ICAB) is going to organize 14th ICAB National Award for Best Presented Annual Report-2013 on 30 November 2014 in Dhaka.

In today’s world of globalization, rapid technological advancements and rule- based international economic environment the role of accounting professionals have become more challenging and multi-dimensional. Consequently, they have to be innovative in improving the existing accounting standards.

I appreciate the pioneering role of ICAB in pursuing best practices of accounting and auditing standards leading to good corporate governance and also supporting all initiatives bringing integrity, transparency, accountability, innovation and good governance.

Hedayetullah Al Mamoon

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

I congratulate both award winners and ICAB for holding this event and wish 14th ICAB National Awards for Best Presented Annual Reports-2013 a grand success.

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CHAIRMAN Bangladesh Securities and Exchange Commission

November 30, 2014,

Message

I

am very happy to know that the Institute of Chartered Accountants of Bangladesh (ICAB) is going to honor the corporate houses for presenting the best Annual Report for the year 2013.

In modern world value of an Annual Report with reliable and credible information is an essential element for sustainable growth of financial market. In capital market, investor takes investment decision on the basis of disclosed information. Those who published better Annual Reports need to be credited and honored and ICAB has been doing this praised worthy task for a number of years.

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

Bangladesh Securities and Exchange Commission (BSEC) has geared-up its effort manifold to improve the quality and reliability of financial report published by the different corporates under its jurisdiction. Enforcement mechanism has also been intensified so that the investors get better information. In order to improve the quality of Annual Reports, BSEC has taken different steps which include provision for mandatorily publishing a comprehensive report on compliance of all provisions of Corporate Governance codes.

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There is no alternative of improvement of quality and reliability of published reports and this is also an essential element for attracting foreign investment in this country.

I congratulate the award winning companies for their excellent work and hope that ICAB will work closely with BSEC for improving the quality and reliability of Annual Report.

Prof. Dr. M. Khairul Hossain

PRESIDENT The International Federation of Accountants (IFAC)

November 30, 2014

Message

O

n behalf of the International Federation of Accountants (IFAC), its Board, and its more than 175 members and associates in 130 countries, I want to congratulate the Institute of Chartered Accountants of Bangladesh (ICAB) on its 14th National Award for Best Presented Annual Reports 2013.

Over more than 40 years, ICAB has worked tirelessly to provide leadership to Bangladesh’s accountancy profession so it can continue to provide high-quality services in the public interest. As a founding member of IFAC, ICAB also supports our vision of a global accountancy profession that is recognized as a valued leader in the development of strong and sustainable organizations, financial markets, and economies.

ICAB’s National Award honors the highest standards of corporate reporting, but awardees and nominees alike deserve praise for their commitment to transparency and good governance.

On behalf of IFAC, I commend ICAB and its members for your unceasing efforts to strengthen the profession in your nation, the region, and globally as members of IFAC. I wish all of you great success during this prestigious and important annual event.

Sincerely,

Olivia Kirtley

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

Compiling, auditing, and disseminating high-quality financial information lie at the heart of what we do as professional accountants. Stakeholders rely on the information we provide to make economic decisions about an organization, its resources, and its future. More importantly, the quality of this information affects the quality of decision-making at every level.

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CHAIRMAN International Accounting Standards Board (IASB)

Message

A

s the Chairman of the International Accounting Standards Board, I am delighted to be able to send my greetings on the occasion of your l4th ICAB National Award for Best Presented Annual Reports & ceremony. I congratulate the winners of the very prestigious awards that are going to be presented at your ceremony.

This year we have passed an important milestone in our relations with the accounting community of Bangladesh. On 30 September we signed an agreement with ICAB so that you can develop and publish Bangladesh Accounting Standards using our own International Financial Reporting Standards, and also the IFRS for SMEs. We are particularly pleased that by this agreement ICAB has committed itself to formalising convergence with IFRS as a step on the way to full adoption. We look forward to Bangladesh soon joining the growing community of countries all over the world that have adopted full IFRS.

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

We are pleased to know that we will be enjoying even closer relations with ICAB in the future.

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May I take this opportunity to wish you a successful and enjoyable meeting.

Kind regardsHans

Hans Hoogervorst

PRESIDENT Confederation of Asian and Pacific Accountants (CAPA)

November 30, 2014

Message

A

s President of the Confederation of Asian and Pacific Accountants (CAPA), it is my pleasure to give this message to the Institute of Chartered Accountants of Bangladesh (ICAB) on the occasion of the 14th ICAB National Awards for Best Presented Annual Reports 2013.

CAPA is the regional organisation for national professional accountancy organisations in the Asia Pacific. ICAB is a valuable member of CAPA, and we are very pleased to support the Institute’s initiatives in improving the quality of financial reporting in your country.

Annual reports provide stakeholders with important information to assess an organisation’s performance. Therefore, it is crucial that the information presented is relevant, insightful, reliable and most importantly, credible. TheICAB National Awards is an excellent platform to encourage the practice of maintaining high quality reports within an organisation to build trust and credibility with its key stakeholders.

Sincerely,

Sujeewa Mudalige

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

I wish ICAB and the 14th National Awards presentation a great success, and all the very best in staging this important event.

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PRESIDENT South Asian Federation of Accountants (SAFA)

Message

I

am glad to learn that the Institute of Chartered Accountants of Bangladesh (ICAB) is organizing 14th ICAB National Award for presentation of the Best Published Accounts and Reports 2013 on 30th November 2014 at Hotel Pan Pacific Sonargaon, Dhaka, Bangladesh and is also bringing out a special souvenir at the occasion.

Awards Ceremony such as these goes a long way in encouraging the Corporates for providing timely, useful, comparable and quality information in their annual reports and in implementing best practices in financial and non financial reporting within the realms of Internationally recognized standards.

I am of the firm belief that such awards and recognition helps in uplifting the standards of the preparation of corporate annual reports and also encourages them for timely and correct disclosures on all financial and non-financial matters; thus, help in building its image and market value.

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

I send my warm felicitations & best wishes to the organizers, award winners, delegates and dignitaries on this jovial occasion and wish the event a grand success.

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CA. Subodh Kumar Agrawal

PRESIDENT The Institute of Chartered Accountants of Sri Lanka (CA Sri Lanka)

November 30, 2014

Message

I

t gives me great pleasure to send this message on the occasion of the 14th ICAB National Award for Best Presented Annual Reports 2013 organized by the Institute of Chartered Accountants of Bangladesh (ICAB).

Asia is undoubtedly the engine of growth and as nations that belong to this region, we all have an important role to play in ensuring this momentum continues, and be part of this growth momentum, hence transparency and good governance are important elements that need to be the cornerstones of any growing economy.

The South Asian Federation of Accountants (SAFA), as an apex body of the South Asian Association for Regional Co-operation (SAARC) representing accountants in the region, has been working tirelessly to develop the accountancy profession across the SAARC region, while ensuring our region’s continued eminence in the world of accountancy aiming at broader economic development.

There is no doubt that the South Asian region houses a very versatile pool of accountants who not only give leadership to the region, but also beyond this region, with an impressive number of South Asian accountants playing a significant role at regional and international levels in the accounting arena, which is indeed a proud achievement for all of us as accountants from the region.

I believe the next few years will be most vital for the development of both our profession and our region respectively, and events such as the ICAB National Award for Best Presented Annual Reports will undoubtedly contribute towards the development both nationally as well as regionally.

Congratulations to the winners!

Arjuna Herath

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

I congratulate ICAB for understanding this important aspect and promoting transparency and good governance through the Best Presented Annual Report Awards across the public and private sectors in Bangladesh.

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PRESIDENT The Institute of Chartered Accountants in England and Wales (ICAEW)

Message

O

n behalf of ICAEW, I wish to convey my sincere congratulations to the recipients of the prestigious 14th ICAB National Award for Best Presented Annual Reports 2013 and commend the Institute of Bangladesh for holding this important event.

Accountancy professionals are pivotal to upholding transparent financial reporting and corporate governance, and so contribute directly to strengthening the investment climate and competitiveness, and guiding users of financial information to well-informed decisions.

Good corporate governance builds trust, positively shaping the values we govern by. It facilitates effective, entrepreneurial and prudent stewardship of entities, and encourages longer term thinking, transparent flows of reliable information and accountability.

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

We are proud of the work that ICAEW and ICAB do in collaboration.

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Arthur Bailey

PRESIDENT Institute of Chartered Accountants of Pakistan

Message

O

n behalf of the Institute of Chartered Accountants of Pakistan,weextend our heartiest felicitation to the Institute of Chartered Accountants of Bangladesh for organizing the 14th ICAB Best Presented Annual Reports2013 Awards ceremony.

These awards have brought considerable improvement at national level of SAFA member countries as well as at regional level through SAFA Best Presented Report Awards competition held each year.

Sustainability reporting is fundamental to an organization’s integrated thinking and reporting process in providing input into the organization’s identification of its material issues, its strategic objectives, and the assessment of its ability to achieve those objectives and create value over time.During the past few years the corporate reporting in Pakistan has experienced rapid development in the area of ‘Sustainability’ reporting.

Integrated reporting is an emerging and evolving trend in corporate reporting and is something that the professional bodies will need to consider seriously for adoption.

The Annual report is company’s most important strategic communications document, setting forth the company’s vision, values and operating philosophy, as well as its communication strategy. The value of reporting to investors can be achieved by providing a greater focus on forward looking information, risk management, and integrating these in a more coherent way. Investors want forward-looking information about strategy, business models and the ability of the company to create sustainable long-term value.

In the end we wish to place on record our heartiest felicitationfor the winners of 14th ICAB Best Presented Annual Reports 2013 Awards, and appreciation for those who have participated in the competition in their endeavor to produce best corporate report.

Yacoob Suttar

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

In Pakistan the ‘Best Corporate Report Awards’was launched in the year 2000 and since then we have witnessed remarkable improvement in the corporate reporting.Another award namely ‘Best Sustainability Report Awards’ was introduced in the year 2011 with an aim to create awareness about the sustainable growth of the business together with social and environmental responsibilities. Both the awards have contributed in enhancing the quality of annual reports in Pakistan.

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PRESIDENT The Institute of Chartered Accountants of Nepal

Message

I

am happy to know that the Institute of Chartered Accountants of Bangladesh (ICAB) is organizing 14th ICAB National Award for Best Presented Annual Reports 2013 Ceremony on Sunday, 30 November 2014 at Dhaka.

The National Best Presented Annual Report Awards symbolise the recognition of corporate and non-corporate entities that have practiced excellence in presentation and disclosure of pertinent information in the financial statements. The awards recognize the award winning entities’ adherence to best corporate governance practices and transparent accounting and financial reporting procedures in the interest of the company and its stakeholders.

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

The awards impacts a significant long-term dimension in inspiring greater competition among Banking and Non-banking Sector, Insurance Sector, Manufacturing Sector, Communications and IT Sector, Service Sector, Non-Government Organizations Sector and Public Sector entities thereby enhancing the quality of annual report and corporate governance. The awards competition will be enhancing the level of compliance, quality of financial reporting and disclosures practices at par with international standard.

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I heartily congratulate the winners of the National BPA awards and wish the glorious National BPA award presentation ceremony with grand success.

CA. Narendra Bhattarai

THE INSTITUTE - A BRIEF OUTLINE The Institute of Chartered Accountants of Bangladesh The Institute of Chartered Accountants of Bangladesh (ICAB) is the National Professional Accounting Body in Bangladesh, established under the Bangladesh Chartered Accountants Order, 1973 (President’s Order No. 2 of 1973) for the purpose of regulating the profession of accountants and for matters connected therewith.

The vision, mission, aims and objectives of the Institute are as follows:

VISION ICAB members hold a widely respected professional accounting qualification which supports enterprise, corporate governance and sustainable growth in the business environment.

MISSION To promote and regulate high quality financial reporting and auditing in Bangladesh, to develop and maintain the competence of professional accountants and enhance the reputation of the accounting profession in all sectors of the economy.

Integrity

:

ICAB members uphold the highest professional integrity and ethical standards.

Expertise

:

ICAB members conduct their professional responsibilities with a high level of knowledge, competency and skill.

Transparency

:

ICAB members conduct their activities in a clear and transparent way.

Accountability :

ICAB members must be completely responsible for their actions.

STRATEGIC GOALS •

Grow ICAB Student and Membership numbers, and the financial strength of the Institute – a core activity of a modern professional institute.

•

Align with Members’ Careers - ensure that ICAB’s activities are focused on the needs of members and students throughout their careers and are equally supportive of members working in the business, practice and public sectors.

•

Increase ICAB’s profile within Bangladesh and Internationally - promote ICAB’s reputation nationally and ultimately achieving international recognition of the Institute. Work towards achieving reciprocity with other professional bodies.

•

Further enhance the reputation for professionalism and high standards – develop, uphold and promote the highest standards of probity, integrity and professionalism as defining characteristics of membership.

•

Ensure ICAB become compliant with requirements of IFAC (International Federation of Accountants) membership – in particular the Statements of Membership Obligations (SMOs).

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

VALUES

25

AIMS AND OBJECTIVES To accomplish its above mentioned mission and to achieve the aims and objectives, ICAB has been endeavoring to: > Regulate the Accountancy Profession and matters connected therewith in the country > Administer is members and students > Ensure sound professional ethics and code of conduct by its members > Provide specialized training and professional expertise in Accounting, Auditing, Taxation, Corporate Laws, Management Consultancy, Information Technology and related subjects > Impart Continuing Professional Development (CPD) training to its members; > Foster acceptance and observance of International Accounting Standards/International Financial Reporting Standards (IAS/IFRS) and International Standards on Auditing/International Auditing Practices Standards (ISA/IAPS) and adopt the same in Bangladesh as Bangladesh Accounting Standards/Bangladesh Financial Reporting Standards (BAS/BFRS) and Bangladesh Standards on Auditing/Bangladesh Auditing Practices Standards (BSA/BAPS) respectively; > Keep abreast of the latest developments in Accounting techniques, Audit methodology, Information technology, Management consultancy and related fields; and > Liaise with international and regional organizations to influence the development of efficient capital markets and international trade services.

ADMINISTRATIVE MINISTRY The Ministry of Commerce, Government of the People’s Republic of Bangladesh is the Administrative Ministry of the Institute of Chartered Accountants of Bangladesh.

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

GOVERNANCE

26

The Council-ICAB is the supreme authority responsible for the administration and management of the Institute in accordance with the ICAB Bye-Laws 2004 subject to the provisions of P.O. No. 2 of 1973.

The Council is composed of twenty members elected by the members of the Institute from its two regional constituencies in Bangladesh, every three years. The President and the Vice-Presidents of the Institute are elected by the Council every calendar year to manage the affairs of the Institute. The President who is the Chief Executive of the Institute heads the Council. The Council is assisted by various Standing and Other (Non-Standing) Committees and Boards. For the purpose of assisting the Council and the committees/Boards in matters concerning their functions, the Council is empowered to constitute Regional Committees, the members of which are elected by the general members of the respective constituencies. Currently there are two Regional Committees in Dhaka, Chittagong and Overseas Chapters, London-based UK Chapter Management Committee and Toronto-based North American Chapter. The day to day running of the Institute is delegated to the Secretariat, headed by the Secretary.

MEMBERSHIP As of 01 July 2014, the Institute had 1499 members of whom 1347 are residing in Bangladesh and 152 in abroad. There are 862 Fellows and 637 Associates enrolled with the Institute as of 1st July 2014.

Out of 1499 members, 368 are practicing as public accountants and the rest 1131 are either serving in various key positions in public and private organizations, both at home and abroad, and self employed running their own business. However, the total number of the members is now 1511 from 1st July to date.

SERVICES RENDERED While almost all the non-practicing chartered accountants serve in key positions of various government and non-government organizations, banks, autonomous & semi-autonomous bodies, listed and other types of corporate and non-corporate entities, educational institutions, etc. within the country and abroad, the practicing Chartered Accountants mainly carry out audits of financial statements of various enterprises as public accountants under the banners of various CA firms approved by the Institute.

Apart from specialization in traditional accounting and auditing services, CA Firms are also engaged in: • Taxation services • Information Technology • Statutory and Liquidation services

•

Management consultancy services encompassing, inter alia, the following areas; > Valuation of business and shares; > Designing of accounting, internal control and operational systems for organizations; and > Rendering of miscellaneous services like maintaining computerized financial accounts of companies business process re-engineering, management selection and recruitment, disinvestments of government enterprises, etc. > Due diligence study, feasibility study etc.

INTERNATIONAL AFFILIATION

ICAB is an active member of the following international and regional accounting bodies: * The International Federation of Accountants (IFAC) * The International Accounting Standards Board (IASB) * The Confederation of Asian and Pacific Accountants (CAPA) * The South Asian Federation of Accountants (SAFA)

MOU & MRA Currently ICAB has effective Memorandum of Understanding (MoU) and the Mutual Recognition Arrangement (MRA) with some national & international organizations. Some of those key relationships are as follows: > MoU with the Institute of Chartered Accountants in England & Wales (ICAEW) > MRA with CPA Ireland > MoU for Local Governance Support Project in Bangladesh > MoU with Office of the Comptroller & Auditor General of Bangladesh (OCAG)

ICAB PUBLICATIONS ICAB publications include, inter alia, a quarterly journal titled ‘The Bangladesh Accountant’ and a monthly mouthpiece ‘ICAB News Bulletin’. The Journal provides primary opportunity to publish articles by the Members of the Institute and fellow academics elsewhere. Articles on different aspects of Auditing, Accounting, Financial and Economic issues, the latest ICAB events and news items of national and international importance, particularly relevant to Accounting profession and Bangladesh economy, are published in the ICAB News Bulletin. ICAB also publishes books and booklets on accounting profession and research materials.

Website (www.icab.org.bd) Home: About ICAB, Who we are, What we do, Where we are, Who we work with, The Council, Present President & Vice-Presidents, Past Presidents, Standing and Others Committees, Regional Committees, Find a Chartered Accountant, International membership, MoU with ICAEW. Join Us: Why join ICAB, Pathways to Membership, Train For The ACA, Find Our CA Firms.

EXTERNAL RESOURCES Legal Adviser • Barrister Mahbub Shafique, Advocate, Bangladesh Supreme Court, Dhaka Auditors • Mr. Abdul Wahab FCA A Wahab & Co. Chartered Accountants and • Mr. Enamul Kabir FCA Ashraf Uddin & Co. Chartered Accountants Bankers • Dhaka Bank Ltd. • Southeast Bank Ltd. • AB Bank Ltd. • Sonali Bank Ltd. • Standard Chartered Bank • Social Islami Bank Ltd.

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

ICAB website provides the following useful information to its users:

27

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

“GLIMPSES” PREVIOUS ICAB NATIONAL AWARDS

2000

28

2001

2003

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

“GLIMPSES” PREVIOUS ICAB NATIONAL AWARDS

2002

29

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

“GLIMPSES” PREVIOUS ICAB NATIONAL AWARDS

2004

30

2005

2007

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

“GLIMPSES” PREVIOUS ICAB NATIONAL AWARDS

2006

31

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

“GLIMPSES” PREVIOUS ICAB NATIONAL AWARDS

2008

32

2009

2011

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

“GLIMPSES” PREVIOUS ICAB NATIONAL AWARDS

2010

33

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

“GLIMPSES” PREVIOUS ICAB NATIONAL AWARDS

2012

34

ICAB’S ADOPTION STATUS OF INTERNATIONAL ACCOUNTING STANDARDS (IASs)

AS BANGLADESH ACCOUNTING STANDARDS (BASs) AS OF 30 JUNE 2014 IAS/BAS #

Title

1.

IAS/BAS 1

Presentation of Financial Statements

2.

IAS/BAS 2

Inventories

3.

IAS/BAS 7

Statement of Cash Flows

4.

IAS/BAS 8

Accounting Policies, Changes in Accounting Estimates and Errors

5.

IAS/BAS 10

Events after the Reporting Period

6.

IAS/BAS 11

Construction Contracts

7.

IAS/BAS 12

Income Taxes

8.

IAS/BAS 16

Property, Plant & Equipment

9.

IAS/BAS 17

Leases

10.

IAS/BAS 18

Revenue

11.

IAS/BAS 19

Employee Benefits

12.

IAS/BAS 20

Accounting of Government Grants and Disclosure of Government Assistance

13.

IAS/BAS 21

The Effects of Changes in Foreign Exchange Rates

14.

IAS/BAS 23

Borrowing Costs

15.

IAS/BAS 24

Related Party Disclosures

16.

IAS/BAS 26

Accounting and Reporting by Retirement Benefit Plans

17.

IAS/BAS 27

Separate Financial Statemens

18.

IAS/BAS 28

Investments in Associates and Joint Ventures

19.

IAS/BAS 29

Financial Reporting in Hyperinflationary Economics

20.

IAS/BAS 32

Financial Instruments: Presentation

21.

IAS/BAS 33

Earnings per Share

22.

IAS/BAS 34

Interim Financial Reporting

23.

IAS/BAS 36

Impairment of Assets

24.

IAS/BAS 37

Provisions, Contingent Liabilities and Contingent Assets

25.

IAS/BAS 38

Intangible Assets

26.

IAS/BAS 39

Financial Instruments: Recognition and Measurement

27.

IAS/BAS 40

Investment Property

28.

IAS/BAS 41

Agriculture

Total 28 BASs out of 28 IASs (All of these standards are currently effective, as applicable)

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

Nos.

35

ICAB’S ADOPTION STATUS OF INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRSs) AS BANGLADESH FINANCIAL REPORTING STANDARDS (BFRSs) AS OF 30 NOVEMBER 2014 IFRS / BFRS #

Title

1.

BFRS 1

First-time adoption of International financial Reporting Standards

2.

BFRS 2

Share-based Payment

3.

BFRS 3

Business Combinations

4.

BFRS 4

Insurance Contracts

5.

BFRS 5

Non-current Assets Held for Sale and Discontinued Operations

6.

BFRS 6

Exploration for and Evaluation of Mineral Resources

7.

BFRS 7

Financial Instruments: Disclosures

8.

BFRS 8

Operating Segments

9.

IFRS 9

Financial Instruments

10.

BFRS 10

Consolidated Financial Statements

11.

BFRS 11

Joint Arrangements

12.

BFRS 12

Disclosure of Interests in other Entities

13.

BFRS 13

Fair Value Measurement

Nos.

Total 12 BFRSs out of 13 IFRS (All of these standards are currently effective, as applicable)

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

BRIEF OF ICAB’S ADOPTION STATUS OF INTERNATIONAL QUALITY CONTROL, AUDITING, REVIEW, OTHER ASSURANCE, AND RELATED SERVICES PRONOUNCEMENTS AS OF 30 NOVEMBER 2014

36

International Status

Bangladesh Status

Total ISAs existed

36

Total ISAs adopted by ICAB as BSAs

36

Total ISREs existed

2

Total ISREs adopted by ICAB as BSREs

2

Total ISAEs Existed

5

Total ISAEs adopted by ICAB as BSAEs

5

Total ISRSs Existed

2

Total ISRSs adopted by ICAB as BSRSs

2

FRAMEWORK

1

FRAMEWORK - adopted by ICAB

1

IESBA Code of Ethics

1

IESBA Code of Ethics - adopted by ICAB

1

International Standards on Quality Control 1 (ISQC 1) Total

1 48

ISQC 1 - adopted by ICAB as Bangladesh Standards on Quality Control 1 (BSQC 1 Total

NB: All of these Standards and Pronouncements are currently effective

1 48

ADOPTION STATUS OF ICAB’S ADOPTION STATUS OF INTERNATIONAL QUALITY CONTROL, AUDITING, REVIEW, OTHER ASSURANCE, AND RELATED SERVICES PRONOUNCEMENTS AS OF 30 NOVEMBER 2014 AUDITS OF HISTORICAL FINANCIAL INFORMATION International Standards on Auditing (ISA) / Bangladesh Standards on Auditing (BSA): ISA / BSA #

1.

200

2.

3.

4.

5.

210 220 230 240

6.

250

7.

8.

260 265

9.

10.

300 315

11.

12.

13.

14.

320 330 402 450

15.

16.

17.

18.

19.

20.

21.

500 501 505 510 520 530 540

22.

23.

24.

25.

550 560 570 580

26.

600

27.

28.

29.

30.

31.

610 (Revised 2013) 620 700 705 706

32.

710

33.

720

34.

800

35.

805

36.

810

ISA/ BSA Title Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with Bangladesh Standards on Auditing Agreeing the Terms of Audit Engagements Quality Control for an Audit of Financial Statements Audit Documentation The Auditor's Responsibilities Relating to Fraud in an Audit of Financial Statements Consideration of Laws and Regulations in an Audit of Financial Statements Communication with Those Charged with Governance Communicating Deficiencies in Internal Control to Those Charged with Governance and Management Planning an Audit of Financial Statements Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and Its Environment Materiality in Planning and Performing an Audit The Auditor’s Responses to Assessed Risks Audit Considerations Relating to Entities Using Service Organization Evaluation of Misstatements Identified during the Audit Audit Evidence Audit Evidence—Specific Considerations for Selected Items External Confirmations Initial Audit Engagements—Opening Balances Analytical Procedures Audit Sampling Auditing Accounting Estimates, Including Fair Value Accounting Estimates, and Related Disclosures Related Parties Subsequent Events Going Concern Written Representations Special Considerations—Audits of Group Financial Statements (Including the Work of Component Auditors) Using the Work of Internal Auditors Using the Work of an Auditor’s Expert Forming an Opinion and Reporting on Financial Statements Modifications to the Opinion in the Independent Auditor’s Report Emphasis of Matter Paragraphs and Other Matter Paragraphs in the Independent Auditor’s Report Comparative Information—Corresponding Figures and Comparative Financial Statements The Auditor’s Responsibilities Relating to Other Information in Documents Containing Audited Financial Statements Special Considerations—Audits of Financial Statements Prepared in Accordance with Special Purpose Frameworks Special Considerations –Audits of Single Financial Statements and Specific Elements, Accounts or Items of a Financial Statement Engagements to Report on Summary Financial Statements

NB: All of these Standards and Pronouncements are currently effective

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

Sl. #

37

ADOPTION STATUS OF INTERNATIONAL ACCOUNTING STANDARDS (IAS)

BY ICAB AS BANGLADESH ACCOUNTING STANDARDS (BAS) AS OF 30 JUNE 2014

OTHER ADOPTION STATUS BY ICAB AS OF 30 NOVEMBER 2014 International

Bangladesh

International Standard on Quality Control (ISQC) 1, Quality Control for Firms that Perform Audits and Reviews of Financial Statements, and Other Assurance and Related Services Engagements

Bangladesh Standard on Quality Control (BSQC) 1, Quality Control for Firms that Perform Audits and Reviews of Financial Statements, and Other Assurance and Related Services Engagements

Framework

Framework

International Framework for Assurance Engagements

International Framework for Assurance Engagements

Glossary of Terms

Glossary of Terms

IESBA Code of Ethics for Professional Accountants

IESBA Code of Ethics for Professional Accountants

AUDITS AND REVIEWS OF HISTORICAL FINANCIAL INFORMATION International Standards on Review Engagements (ISREs) / Bangladesh Standards on Review Engagements (BSREs) Sl. #

ISREs / BSREs #

ISREs / BSREs Title

1.

2400

Engagements to Review Financial Statements

2.

2410

Review of Interim Financial Information Performedby the Independent Auditor of The Entity

ASSURANCE ENGAGEMENTS OTHER THAN AUDITS OR REVIEWS OF HISTORICAL FINANCIAL INFORMATION International Standards on Assurance Engagements (ISAEs) / Bangladesh Standards on Assurance Engagements (BSAEs)

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

Sl. #

38

ISAEs / BSAEs #

ISAEs / BSAEs Title

3000–3399 APPLICABLE TO ALL ASSURANCE ENGAGEMENTS 1.

3000

Assurance Engagements Other than Audits or Reviews of Historical Financial Information

3400–3699 SUBJECT SPECIFIC STANDARDS 2.

3400

The Examination of Prospective Financial Information

3.

3402

Assurance Reports on Controls at a Service Organization

4.

3410

Assurance Engagements on Greenhouse Gas Statements

5.

3420

Assurance Engagements to Report on the Compilation of Pro Forma Financial Information Included in a Prospectus

RELATED SERVICES International Standards on Related Services (ISRSs) / Bangladesh Standards on Related Services (BSRSs) Sl. #

ISRSs / BSRSs #

ISRSs / BSRSs Title

1.

4400

Engagements to Perform Agreed-Upon Procedures Regarding Financial Information

2.

3402

Compilation Engagements

NB: All of these above Standards and Pronouncements are currently effective

EVALUATION CRITERIA FOR ADJUDICATION OF ICAB NATIONAL AWARD Banking - Evaluation Report for SAFA Best Presented Accounts Name of the Evaluator: Distribution of Marks under different criteria Items

Break up of Marks

Corporate Objectives, Values & Structure Clarity and presentation:

(5 Marks)

 Vision and Mission

1

 Overall strategic objectives

1

 Core values and code of conduct/ethical principles

1

 Profile of the Company

1

 Director’s profiles and their representation on Board of other companies & Organization Chart

1 (11 Marks)

 A general review of the performance of the company

2

 Description of the performance of the various activities / products / segments of the company and its group companies during the period under review. (Weightage to be given for pictorial / graphical / tabular presentations used for this purpose)

2

 A brief summary of the Business and other Risks facing the organization and steps taken to effectively manage such risks

2

 A general review of the future prospects/outlook.

2

 Information on how the company contributed to its responsibilities towards the staff (including health & safety)

2

 Information on company's contribution to the national exchequer & to the economy

1

Sustainability Reporting

(11 marks)

 Social Responsibility Initiatives ( CSR)

3

 Environment related Initiatives

3

 Environmental & Social Obligations

3

 Integrated Reporting

2

Appropriateness of Disclosure of Accounting policies and General Disclosure

(11 Marks)

 Disclosure of adequate and properly worded accounting policies relevant to assets, liabilities, Income and expenditure in line with best reporting standards.

4

 Any Specific accounting policies

1

 Impairment of Assets

1

 Changes in accounting policies/Changes in accounting estimates

1

 Accounting policy on subsidiaries( if there is no any subsidiary, full marks should be granted)

1

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

Management Report/ Commentary and analysis including Director’s Report / Chairman’s Review/CEO’s Review etc.

39

Segment Information Comprehensive segment related information bifurcating Segment revenue, segment results and segment capital employed Availability of information regarding different segments and units of the entity as well as non-segmental entities/units Segment analysis of Segment Revenue Segment Results Turnover Operating profit Carrying amount of Net Segment assets Financial Statements (Including Formats)

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

1

1

(20 Marks)

Disclosures of all contingencies and commitments

1

Comprehensive related party disclosures

1

Disclosures of Remuneration & Facilities provided to Directors & CEO

1

Statement of Financial Position / Balance Sheet and relevant schedules

2

Income Statement / Profit and Loss Account and relevant schedules

2

Statement of Changes in Equity / Reserves & Surplus Schedule

2

Disclosure of Types of Share Capital

1

Statement of Cash Flow

2

Consolidated Financial Statement (CFS)

2

Extent of compliance with the core IAS/IFRS or equivalent National Standards

3

Disclosures / Contents of Notes to Accounts

3

Information about Corporate Governance

40

1

(9 Marks)

Board Of Directors, Chairman And CEO

1

Audit Committee (Composition, role, meetings, attendance, etc) Internal Control & Risk Management

1

Ethics And Compliance

1

Remuneration and other Committees of Board

1

Human Capital

1

Communication To Shareholders & Stakeholders - Information available on website - Other information

0.5 0.5

Management Review And Responsibility

1

Disclosure by Board of Directors or Audit Committee on evaluation of quarterly reports

1

Any other investor friendly information

1

( 11 Marks)

Description of the Risk Management Framework

5

Risk Mitigation Methodology

4

Disclosure of Risk Reporting

2

Stakeholders Information Distribution of shareholdering (Number of shares as well as category wise, e.g Promoter group, FII etc)

(3 Marks) 1

Shares held by Directors/Executives and relatives of Directors/Executives

1

Redressal of investors complaints

1

Graphical/ Pictorial Data:

(2.5 Marks)

Earnings per Share

0.5

Net Assets

0.5

Stock Performance

0.5

Shareholders’ Funds

0.5

Return on Shareholders Fund

0.5

Horizontal/Vertical Analysis including following.

Operating Performance (Income Statement) (2.5 Marks) Total Revenue Operating profit Profit Before Tax Profit after Tax EPS Statement of Financial Position (Balance Sheet) (2.5 Marks) Shareholders Fund Property Plant & Equipment Net Current Assets Long Term Liabilities/Current Liabilities

( 5 Marks)

Profitability/Dividends/ Performance and Liquidity Ratios Gross Profit Ratio Earning before Interest, Depreciation and Tax Price earning ratio Current Ratios Return on Capital Employed Debt Equity Ratio

(5 Marks) 0.5 1 0.5 1 1 1

Statement of Value Added and Its Distribution Government as Taxes

( 5 Marks) 1

Shareholders as dividend

0.5

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

Risk Management & Control Environment

41

Employees as bonus/remuneration

1

Retained by the entity Market share information of the Company’s product/services

1

Economic value added

1

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

Presentation of Financial Statements

42

0.5

( 5 Marks)

Quality of the Report/ Layout of Contents

1

Cover and printing including the theme on the cover page

1

Appropriateness and effectiveness of photographs and their relevance

1

Effectiveness of Charts and Graphs

1

Clarity, simplicity and lucidity in presentation of Financial Statements

1

Timeliness in issuing Financial Statements and holding AGMs 3 months time to produce the Annual Report and hold AGM are considered reasonable for full marks Delay after the initial period of 3 months -deduction of 2 marks is to be made for each month If the period is over 6 months – no marks shall be awarded

(10 Marks)

Additional Disclosures For Example Human Resource Accounting Any other good additional disclosures ( Independence certification Eg GNV / GRI )

(4.5 Marks)

Specific Areas for Banking Sector

(20 Marks)

Disclosure of Ratings given by various rating agencies for Instruments issued by /of Bank. For eg. FD, CD, Tier I perpetual Bonds

1

Details of Advances portfolio Classification wise as per the direction issued by the central bank of the respective contries

1

Disclosure for Non Performing assets Movements in NPA Sector-wise breakup of NPA Movement of Provisions made against NPA Details of accounts restructured as per regulatory guidelines

1

Maturity Pattern of Key Assets and Liabilities (ALM)

1

Classification and valuation of investments as per regulatory guidelines/Accounting Standards

1

Business Ratio/Information Statutory Liquidity Reserve (Ratio) Net interest income as a percentage of working funds / Operating cost Efficiency ratio Return on Average Asset Cost / Income ratio Net Asset Value Per Share

5.5

Profit per employee Capital Adequacy ratio Operating profit as a percentage of working funds Cash Reserve Ratio / Liquid Asset ratio Dividend Cover ratio Gross Non-Performing assets to gross advances / Non-Performing Loans (Assets) to Total Loans (Assets Note: Meaning of Working funds -These are total resources (total liabilities or total assets) of a bank as on a particular date. Total resources include capital, reserves and surplus, deposits, borrowings, other liabilities and provision.

Details of credit concentration / Sector vise exposures

2.5

The break-up of ‘Provisions and contingencies’ included in the Profit and Loss Account

0.5

Disclosure under regulatory guidelines

2

Details of Non-Statutory investment portfolio

1

Disclosure in respect of assets given on operating & finance lease

1

Disclosures for derivative investments

2

Bank's Network : List of Centers or Branches

0.5

Total Marks

138 Marks

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

-------------------------------Signature of the Evaluator

43

EVALUATION CRITERIA FOR ADJUDICATION OF ICAB NATIONAL AWARD Insurance - Evaluation Report For SAFA Best Presented Accounts Name of the Evaluator: Distribution of Marks under different criteria Items

Break up of Marks

Corporate Objectives, Values & Structure

(5 Marks)

Clarity and presentation: Vision and Mission

1

Overall strategic objectives

1

Core values and code of conduct/ethical principles

1

Profile of the Company

1

Director’s profiles and their representation on Board of other companies & Organization Chart

1

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

Management Report / Commentary and analysis including Director’s Report / Chairman’s Review/CEO’s Review etc.

44

(11 Marks)

A general review of the performance of the company

2

Description of the performance of the various activities / products / segments of the company and its group companies during the period under review. (Weightage to be given for pictorial / graphical / tabular presentations used for this purpose)

2

A brief summary of the Business and other Risks facing the organization and steps taken to effectively manage such risks

2

A general review of the future prospects/outlook.

2

Information on how the company contributed to its responsibilities towards the staff (including health & safety)

2

Information on company's contribution to the national exchequer & to the economy

1

Sustainability Reporting

(11 Marks)

Social Responsibility Initiatives ( CSR)

3

Environment related Initiatives

3

Environmental & Social Obligations

3

Integrated Reporting

2

Appropriateness of Disclosure of Accounting policies and General Disclosure

(11 Marks)

Disclosure of adequate and properly worded accounting policies relevant to assets, liabilities, Income and expenditure in line with best reporting standards.

4

Any Specific accounting policies

1

Impairment of Assets

1

Changes in accounting policies/Changes in accounting estimates

1

Accounting policy on subsidiaries( if there is no any subsidiary, full marks should be granted)

1

Availability of information regarding different segments and units of the entity as well as non-segmental entities/units Segment analysis of Segment Revenue Segment Results Turnover Operating profit Carrying amount of Net Segment assets Financial Statements (Including Formats)

1

1

1

(20 Marks)

Disclosures of all contingencies and commitments

1

Comprehensive related party disclosures

1

Disclosures of Remuneration & Facilities provided to Directors & CEO

1

Statement of Financial Position / Balance Sheet and relevant schedules

2

Income Statement / Profit and Loss Account and relevant schedules

2

Statement of Changes in Equity / Reserves & Surplus Schedule

2

Disclosure of Types of Share Capital

1

Statement of Cash Flow

2

Consolidated Financial Statement (CFS)

2

Extent of compliance with the core IAS/IFRS or equivalent National Standards

3

Disclosures / Contents of Notes to Accounts

3

Information about Corporate Governance

(9 Marks)

Board Of Directors, Chairman And CEO

1

Audit Committee (Composition, role, meetings, attendance, etc) Internal Control & Risk Management

1

Ethics And Compliance

1

Remuneration and other Committees of Board

1

Human Capital

1

Communication To Shareholders & Stakeholders -

Information available on website

0.5

-

Other information

0.5

Management Review And Responsibility

1

Disclosure by Board of Directors or Audit Committee on evaluation of quarterly reports

1

Any other investor friendly information

1

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

Segment Information Comprehensive segment related information bifurcating Segment revenue, segment results and segment capital employed

45

Risk Management & Control Environment

( 11 Marks)

Description of the Risk Management Framework

5

Risk Mitigation Methodology

4

Disclosure of Risk Reporting

2

Stakeholders Information

(3 Marks)

Distribution of shareholdering (Number of shares as well as category wise, e.g Promoter group, FII etc)

1

Shares held by Directors/Executives and relatives of Directors/Executives

1

Redressal of investors complaints

1

Graphical/ Pictorial Data:

(2.5 Marks)

Earnings per Share

0.5

Net Assets

0.5

Stock Performance

0.5

Shareholders’ Funds

0.5

Return on Shareholders Fund

0.5

Horizontal/Vertical Analysis including following.

( 5 Marks)

Operating Performance (Income Statement) (2.5 Marks) Total Revenue Operating profit Profit Before Tax Profit after Tax EPS Statement of Financial Position (Balance Sheet) (2.5 Marks) Shareholders Fund Property Plant & Equipment

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

Net Current Assets

46

Long Term Liabilities/Current Liabilities Profitability/Dividends/ Performance and Liquidity Ratios Gross Profit Ratio Earning before Interest, Depreciation and Tax Price earning ratio Current Ratios Return on Capital Employed Debt Equity Ratio Statement of Value Added and Its Distribution Government as Taxes Shareholders as dividend Employees as bonus/remuneration Retained by the entity

(5 Marks) 0.5 1 0.5 1 1 1 ( 5 Marks) 1 0.5 1 0.5

Market share information of the Company’s product/services

1

Economic value added

1

Presentation of Financial Statements

( 5 Marks)

Quality of the Report/ Layout of Contents

1

Cover and printing including the theme on the cover page

1

Appropriateness and effectiveness of photographs and their relevance

1

Effectiveness of Charts and Graphs

1

Clarity, simplicity and lucidity in presentation of Financial Statements

1

Timeliness in issuing Financial Statements and holding AGMs

(10 Marks)

3 months time to produce the Annual Report and hold AGM are considered reasonable for full marks Delay after the initial period of 3 months - deduction of 2 marks is to be made for each month If the period is over 6 months – no marks shall be awarded Additional Disclosures

(4.5 Marks)

For Example Human Resource Accounting Any other good additional disclosures (Independence certification Eg GNV , GRI) (10 Marks)

Claims management and details of outstanding claims (IBNR & IBNER) with ageing thereof

2

Disclosures pertaining to Solvency Margin

2

Certificate of Actuary giving details of the liabilities on account of live policies and estimates/assumptions made for the same

2

Accounting ratios pertaining to insurance sector

2

Review of assets quality

2

Total Marks

------------------------------Signature of the Evaluator

128 Marks

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

Specific Areas for Insurance Sector

47

EVALUATION CRITERIA FOR ADJUDICATION OF ICAB NATIONAL AWARD General - Evaluation Report For SAFA Best Presented Accounts Name of the Evaluator: Distribution of Marks under different criteria Items Corporate Objectives, Values & Structure Clarity and presentation:

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

(5 Marks)

Vision and Mission

1

Overall strategic objectives

1

Core values and code of conduct/ethical principles

1

Profile of the Company

1

Director’s profiles and their representation on Board of other companies & Organization Chart

1

Management Report / Commentary and analysis including Director’s Report / Chairman’s Review/CEO’s Review etc.

48

Break up of Marks

(11 Marks)

A general review of the performance of the company

2

Description of the performance of the various activities / products / segments of the company and its group companies during the period under review. (Weightage to be given for pictorial / graphical / tabular presentations used for this purpose)

2

A brief summary of the Business and other Risks facing the organization and steps taken to effectively manage such risks

2

A general review of the future prospects/outlook.

2

Information on how the company contributed to its responsibilities towards the staff (including health & safety)

2

Information on company's contribution to the national exchequer & to the economy

1

Sustainability Reporting

( 11 Marks)

Social Responsibility Initiatives ( CSR)

3

Environment related Initiatives

3

Environmental & Social Obligations

3

Integrated Reporting

2

Appropriateness of Disclosure of Accounting policies and General Disclosure

(11 Marks)

Disclosure of adequate and properly worded accounting policies relevant to assets, liabilities, Income and expenditure in line with best reporting standards.

4

Any Specific accounting policies

1

Impairment of Assets

1

Changes in accounting policies/Changes in accounting estimates

1

Accounting policy on subsidiaries( if there is no any subsidiary, full marks should be granted)

1

Availability of information regarding different segments and units of the entity as well as non-segmental entities/units Segment analysis of Segment Revenue Segment Results Turnover Operating profit Carrying amount of Net Segment assets Financial Statements (Including Formats)

1

1

1

(20 Marks)

Disclosures of all contingencies and commitments

1

Comprehensive related party disclosures

1

Disclosures of Remuneration & Facilities provided to Directors & CEO

1

Statement of Financial Position / Balance Sheet and relevant schedules

2

Income Statement / Profit and Loss Account and relevant schedules

2

Statement of Changes in Equity / Reserves & Surplus Schedule

2

Disclosure of Types of Share Capital

1

Statement of Cash Flow

2

Consolidated Financial Statement (CFS)- if applicable

2

Extent of compliance with the core IAS/IFRS or equivalent National Standards

3

Disclosures / Contents of Notes to Accounts

3

Information about Corporate Governance

(9 Marks)

Board Of Directors, Chairman And CEO

1

Audit Committee (Composition, role, meetings, attendance, etc) Internal Control & Risk Management

1

Ethics And Compliance

1

Remuneration and other Committees of Board

1

Human Capital

1

Communication To Shareholders & Stakeholders -

Information available on website

0.5

-

Other information

0.5

Management Review And Responsibility

1

Disclosure by Board of Directors or Audit Committee on evaluation of quarterly reports

1

Any other investor friendly information

1

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

Segment Information Comprehensive segment related information bifurcating Segment revenue, segment results and segment capital employed

49

Risk Management & Control Environment Description of the Risk Management Framework

5

Risk Mitigation Methodology

4

Disclosure of Risk Reporting

2

Stakeholders Information

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

(3 Marks)

Distribution of shareholdering (Number of shares as well as category wise, e.g Promoter group, FII etc)

1

Shares held by Directors/Executives and relatives of Directors/Executives

1

Redressal of investors complaints

1

Graphical/ Pictorial Data:

50

( 11Marks)

(2.5 Marks)

Earnings per Share

0.5

Net Assets

0.5

Stock Performance

0.5

Shareholders’ Funds

0.5

Return on Shareholders Fund

0.5

Horizontal/Vertical Analysis including following.

Operating Performance (Income Statement) (2.5 Marks) Total Revenue Operating profit Profit Before Tax Profit after Tax EPS Statement of Financial Position (Balance Sheet) (2.5 Marks) Shareholders Fund Property Plant & Equipment Net Current Assets Long Term Liabilities/Current Liabilities

( 5 Marks)

Profitability/Dividends/ Performance and Liquidity Ratios Gross Profit Ratio Earning before Interest, Depreciation and Tax Price earning ratio Current Ratios Return on Capital Employed Debt Equity Ratio

(5 Marks) 0.5 1 0.5 1 1 1

Statement of Value Added and Its Distribution Government as Taxes

( 5 Marks) 1

Shareholders as dividend Employees as bonus/remuneration Retained by the entity

0.5 1 0.5

Market share information of the Company’s product/services

1

Economic value added

1

Presentation of Financial Statements

( 5 Marks)

Quality of the Report/ Layout of Contents

1

Cover and printing including the theme on the cover page

1

Appropriateness and effectiveness of photographs and their relevance

1

Effectiveness of Charts and Graphs

1

Clarity, simplicity and lucidity in presentation of Financial Statements

1

Timeliness in issuing Financial Statements and holding AGMs

(10 Marks)

3 months time to produce the Annual Report and hold AGM are considered reasonable for full marks Delay after the initial period of 3 months - deduction of 2 marks is to be made for each month If the period is over 6 months – no marks shall be awarded Additional Disclosures

(4.5 Marks)

For Example Human Resource Accounting Any other good additional disclosures (Independence certification Eg GNV / GRI ) Total Marks

118 Marks

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

-----------------------------------Signature of the Evaluator

51

EVALUATION CRITERIA FOR ADJUDICATION OF ICAB NATIONAL AWARD Evaluation Report for SAFA Best Presented Annual Report Awards – Public Sector Category Name of the Evaluator: Distribution of Marks under different criteria Items Governance Body’s Statement/ Objectives

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

(5 Marks)

Vision and Mission

1

Overall objectives

1

Core values and code of conduct/ethical principles

1

Profile of the Organization

1

Content & comprehensiveness of coverage of matters

1

Management discussion and analysis.

52

Break up of Marks

(15 Marks)

A general review of the performance of the Organization

2

Description of the performance of the various activities during the period under review. (Weightage to be given for pictorial / graphical / tabular presentations used for this purpose)

2

Description of external oversight of various functions like systems audit internal audit by an external specialist and other measures taken to enhance credibility of internal controls and systems

2

A general review of the future prospects/outlook.

2

Social Responsibility Initiatives ( CSR)

2

Environment related Initiatives

2

Information on how the company contributed to its responsibilities towards the staff (including health & safety)

2

Information on company's contribution to the national exchequer & to the economy

1

Appropriateness of Disclosure of Accounting policies and General Disclosure

(15 Marks)

Disclosure of adequate and properly worded accounting policies relevant to assets, liabilities, Income and expenditure in line with best reporting standards.

5

Compliance with requirements of concerned regulators in respective SAFA countries

2

Any Specific accounting policies

2

Clarity of disclosure as to basis of accounting followed – cash or accrual

2

Changes in accounting policies/Changes in accounting estimates

1

Disclosure of comparison of actuals with budgeted figures and clarity of explanations as to variances and reasons of variances from budgeted figures

2

Consolidated statements of any other special purpose vehicle floated by the Organisation to meet its objective

1

(25 Marks)

Disclosures of all contingencies and commitments

3

Comprehensive related party disclosures

2

Disclosures of Remuneration & Facilities provided to Directors & CEO

2

Statement of Financial Position / Balance Sheet and relevant schedules

3

Income Statement / Profit and Loss Account and relevant schedules

3

Statement of Cash Flow

2

Consolidated Financial Statement (CFS)

2

Extent of compliance with the International or equivalent National Standards

4

Disclosures / Contents of Notes to Accounts

4

Information about Governance

(15 Marks)

Comprehensiveness and clarity of information about structure and functioning of the organization

3

Information as to non compliances of mandatory requirements of the concerned statute and regulator and explanation for such non compliance

2

Clarity of description of role and responsibilities of various governance committees of the Organization

3

Ethics And Compliance

1

Adequacy of the governance measures and policies adopted by the Organization in the context of the size and level of the Organization

2

Adequacy of diversity in terms of gender and qualifications of the members of the governing body –executive and non executive

1

Presentation of any other information relevant and useful from stakeholders perspective in the specific context of the activities of the Organization

3

Presentation of Financial Statements

(15Marks)

Quality of the Report/ Layout of Contents

3

Cover and printing including the theme on the cover page

3

Appropriateness and effectiveness of photographs and their relevance

3

Effectiveness of Charts and Graphs

2

Clarity, simplicity and lucidity in presentation of Financial Statements

2

Usefulness and relevance of information provided in the report

2

Timeliness in issuing Financial Statements and holding AGMs Approval of Financial Statements by Governing body within 2 months of the end of Reporting Period are considered reasonable for full marks Delay after the initial period of 2 months - deduction of 2 marks is to be made for each month If the period is over 6 months – no marks shall be awarded

(10 Marks)

Total Marks

100 Marks

--------------------------------Signature of the Evaluator

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

Financial Statements (Including Formats)

53

EVALUATION CRITERIA FOR ADJUDICATION OF ICAB NATIONAL AWARD NOT-FOR-PROFIT-ORGANIZATIONS INCLUDING NON-GOVERNMENT ORGANIZATIONS (NGO) Name of the Evaluator: Distribution of Marks under different criteria #

Evaluation Criteria

1.

Objectives and Values (Max Marks 5 )

2.

Vision/ mission

2

Legal basis

2

Core Values & Objectives

1

Directors’ Report / Chairman’s / (Head of the Organization Report) CEO Review (Max Marks 10) A general review of the activities / projects completed during the year and in progress. Highlighting the contribution towards achieving the main objectives, contributions made towards the economy of the country. e.g. poverty alleviation. Information on various programs / human resources & infrastructure developments, other segments of NGO Financial and operational sustainability analysis provided.

A general outline of future activities & projects

3.

Maximum Marks (NGO)

4

4 2

Accounting Policies and Disclosures with National and International Accounting Standards (Max Marks 40) Details of Accounting Policies

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

and Disclosures

54

Comparative information is disclosed in the balance sheet, income statement, statement of changes in equity, cash flow statement and accounting policies and explanatory notes are provided.

2

Each material item should be presented separately Presentation of accounting policies Accrual basis is followed (except donations and grants service charge income on cash basis).

1

The source and amount of any donations received during the period are reported and shown separately from the other income generated by NGO.

1

No recurrent expenditure has been charged to capital a/c.

1

Revenue from non core activities has been separately identified.

2

Loan loss provision expenses related to loan losses are shown separately from other expenses in the income statement.

1

Interest accrued on savings of beneficiaries.

Income from investments is shown separately.

2

Income and expenditure statement for the financial service operations is provided, in addition to other operational statements for the whole institution.

1

1 1

Balance Sheet Balance Sheet provides classified summary of microcredit program, social development program and commercial activities tied with the microcredit program of the NGO.

12

Accounting policies on recognizing income and expenses.

Basis of cost allocation for shared costs policy (if applicable).

Accounting of Grant/ subsidies/ donations.

Material in kind donations or subsidies are disclosed.

Depreciation policy and charge Loan loss provisioning (aging) and write off policy.

Source of loan, terms and interest on borrowings from outsiders.

On lending rate of service charge to beneficiaries (clients).

Effective rate of service charge to beneficiaries (clients).

Interest rate paid on savings to beneficiaries (clients).

Terms and nature of investments.

Any unusual financial movement during the period.

Significant departure from accounting standards should be adequately explained./justified Compliance with Core IASs Extent of compliance with the following core IAS / IFRS (Applicable & Adopted by each country for financial year concerned) or equivalent National Standards

Presentation of Financial Statements

1

Presentation / format of Balance Sheet

1

Presentation / format of Income Statement

1

Presentation / format of Cash Flow/ S & A funds

1

Presentation / format of changes in Equity

1

Explanatory notes on Financial Statements

1

If financial statements comply with all relevant accounting standards, an explicit statement of such compliance. Where management concludes that compliance with a relevant accounting standards requirement would result in misleading financial statements, departure from relevant accounting standards requirement is required and should be explained Financial statements are prepared on a going concern basis.

1

Consistency of presentation.

1

Other disclosures as required

2

Information regarding different segments and units of the NGO Segmental review of operations with description of the performance and future prospects of each segment Segment analysis of

5

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

Core IAS’s : 1,2,7,8,10,12,14,16,17,19,21,24,27,28,30,32,36,37,38, and 39 (consider if implemented locally)

55

-Income / Revenue -Operating Profit -Net Assets Information regarding different segments and units of the NGO 5.

NGO / Corporate Governance Information (Max Marks 10 -Board

6.

-Management Committee

2

- (Audit Committee)

2

-Meetings and Attendance

2

-Contribution of NGO to the society Government Exchequer

2

-Other related information

2

Stakeholder Information (Max Marks 10 ) Information relevant for shareholders and other users of financial statements Stakeholder’s information on Equity (Grant + Accumulated Surplus), Reserves are provided with clarity.

2

Promoters / Members information -Distribution of shareholders -Shares held by Directors/Executives

2

Graphic/pictorial data on - Segmental Presentation - i.e. Geographical Segments, Nature of the Projects, Community services development project educational, vocational etc.

2

Five year summary

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

- Community Services carried out

56

2

- No. of beneficiaries - level of enhancement of the social status i.e. comparison of past & present gender wise or age wise or income level wise of Grants / Donation Administration cost incurred per unit of disbursement Balance Sheet

-Members funds

Project wise

-Property Plant and Eqpt -Net current assets -Long term liabilities -capital grants

Project performance Projects completed Value & areas Administration cost measured on a unit of disbursement - Value of the project activities per beneficiary - Administration cost per beneficiary

2

7.

Statement of value added and how distributed (Max Marks 5)

5

-Government as taxes - Value of disbursements to different categories -Children/infants - Families etc.

- Environmental Projects - Health Projects - Vocational developments / Education - Media etc -Retained within the organization -Employees as remuneration 8.

Report Presentation (Max Marks 10) Production quality of report Cover and printing including the theme (on the cover)

2

-

Effectiveness of photographs and their relevance

2

-

Effectiveness of charts and graps

2

-

Layout of contents

2

-

Clarity, simplicity, and lucidity in presentation of accounts

2

Timeliness and AGMs (Max Marks 10)

10

Annual audit was undertaken within six months of the financial year end TOTAL MARKS ( OUT OF 100)

100 14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

9.

-

57

CORPORATE GOVERNANCE DISCLOSURE CHECKLIST MARKS 22

1. BOARD OF DIRECTORS, CHAIRMAN AND CEO 1.1

Company's policy on appointment of directors disclosed.

2

1.2

Adequate representation of non executive directors i.e. one third of the board, subject to a minimum of two

2

1.3

At least one independent director on the board and disclosure / affirmation of the board on such director’s independence.

2

1.4

Chairman to be independent of CEO

2

1.5

Responsibilities of the Chairman of the Board appropriately defined and disclosed. Disclosure of independence of Non Executive Directors Existence of a scheme for annual appraisal of the boards performance and disclosure of the same.

1.6 1.7

Disclosure of policy on annual evaluation of the CEO by theBoard.

1.8

Disclosure of policy on training (including details of the continuing training program) of directors and type and nature of training courses organized for directors during the year Existence of a scheme for annual appraisal of the boards performance At least one director having thorough knowledge and expertise in finance and accounting to provide guidance in the matters applicable to accounting and auditing standards to ensure reliable financial reporting.

Disclosure of number of meetings of the board and participation of each director (at least 4 meetings are required to be held) Directors issue a report on compliance with best practices on Corporate Governance that is reviewed by the external auditors

1.9

1.10 1.11

2 2 2

2 2

2 2 6

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

2. VISION / MISSION AND STRATEGY

58

2.1 2.2 2.3

Company’s vision / mission statements are approved by the board and disclosed in the annual report.

Identification of business objectives and areas of business focus disclosed General description of strategies to achieve the company's business objectives

2 2 2

3. AUDIT COMMITTEES 3.1

Appointment and Composition

3.1.1 Whether the Audit Committee Chairman is an independent Executive Director and Professionally Qualified

22 Non–

2

3.1.2 Whether it has specific terms of reference and whether it is empowered to investigate / question employees and retain external counsel

2

3.1.3 More than two thirds of the members are to be Non Executive Directors

1

3.14 All members of the audit committee to be suitably qualified and at least one member to have expert knowledge of finance and accounting.

2

CORPORATE GOVERNANCE DISCLOSURE CHECKLIST 3.1.5

Head of internal audit to have direct access to audit committee

3.1.6

The committee to meet at least four times a year and the number of meetings and attendance by individual members disclosed in the annual report.

2

Objectives & Activities 3.2.2

3.2.3 3.2.4

3.2.5 3.2.6

Statement on Audit Committee’s review to ensure that internal controls are well conceived properly administered and satisfactorily monitored Statement to indicate audit committees role in ensuring compliance with Laws, Regulations and timely settlements of Statutory dues Statement of Audit committee involvement in the review of the external audit function Ensure effective coordination of external audit function Ensure independence of external auditors To review the external auditors findings in order to be satisfied that appropriate action is being taken Review and approve any non audit work assigned to the external auditor and ensure that such such work does not compromise the independence of the external auditors.

Recommend external auditor for appointment/ reappointment Statement on Audit committee involvement in selection of appropriate accounting policies that are in line will applicable accounting standards and annual review.

Statement of Audit Committee involvement in the review and recommend to the board of directors, annual and interim financial releases 3.2.7 Reliability of the management information used for such computation

2 2 4

2 2

10

4. INTERNAL CONTROL & RISK MANAGEMENT 4.1 Statement of Director's responsibility to establish appropriate system of internal control 4.2 Narrative description of key features of the internal control system and the manner in which the system is monitored by the Board, Audit Committee or Senior Management.

4.3 Statement that the Director's have reviewed the adequacy of the system of internal controls 4.4 Disclosure of the identification of risks the company is exposed to both internally & externally 4.5

Disclosure of the strategies adopted to manage and mitigate the risks

2 2 2 2 2 10

5. Ethics and Compliance 5.1

Disclosure of statement of ethics and values, covering basic principles such as integrity, conflict of interest, compliance with laws and regulations etc..

5.2 Dissemination / communication of the statement of ethics & business practices to all directors and employees and their acknowledgement of the same 5.3 Board’s statement on its commitment to establishing high level of ethics and compliance within the organization 5.4 Establishing effective anti-fraud programs and controls, including effective protection of whistle blowers, establishing a hot line reporting of irregularities etc.

2

3 2

3

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

3.2

1

59

CORPORATE GOVERNANCE DISCLOSURE CHECKLIST 10

6. REMUNERATION COMMITTEE 6.1

Disclosure of the charter (role and responsibilities) of the committee

6.2

Disclosure of the composition of the committee (majority of the committee should be non-executive directors, but should also include some executive directors) Disclosure of key policies with regard to remuneration of directors, senior management and employees

6.3

2 2 2

6.4

Disclosure of number of meetings and work performed

2

6.5

Disclosure of Remuneration of directors, chairman, chief executive and senior executives.

2 5

7. HUMAN CAPITAL 7.1

7.2

Disclosure of general description of the policies and practices codified and adopted by the company with respect to Human Resource Development and Management, including succession planning, merit based recruitment, performance appraisal system, promotion and reward and motivation, training and development, grievance management and counseling.

Organizational Chart

4 1 5

8. Communication to Shareholders & Stakeholders 8.1 8.2

Disclosure of the Company's policy / strategy to facilitate effective communication with shareholders and other stake holders Disclosure of company’s policy on ensuring participation of shareholders in the Annual General Meeting and providing reasonable opportunity for the shareholder participation in the AGM.

2

3 10

9. Environmental and Social Obligatoins

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

9.1

60

9.2

Disclosure of general description of the company's policies and practices relating to social and environmental responsibility of the entity Disclosure of specific activities undertaken by the entity in pursuance of these policies and practices TOTAL

5 5 100

14

th

ICAB National Award giving ceremony for

Best Presented Annual Reports 2013

THE WINNERS CATEGORY 1: PUBLIC SECTOR BANK 1.

2.

3.

Janata Bank Ltd. Rupali Bank Ltd. Bangladesh Development Bank Ltd.

Jointly 1st Jointly 1st Second

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

12.

13.

14.

15.

16.

17.

18.

19.

20.

Prime Bank Ltd. Bank Asia Ltd. Islami Bank Bangladesh Ltd. Eastern Bank Ltd. Dutch-Bangla Bank Ltd. Social Islami Bank Ltd. United Commercial Bank Ltd. Mutual Trust Bank Ltd. Shahjalal Islami Bank Ltd. IFIC Bank Ltd. Trust Bank Ltd. Dhaka Bank Ltd. National Bank Ltd. South East Bank Ltd. NCC Bank Ltd. Mercantile Bank Ltd. The City Bank Ltd. Jamuna Bank Ltd. Pubali Bank Ltd. Premier Bank Ltd.

First Jointly 2nd Jointly 2nd Jointly 3rd Jointly 3rd Merit Certificate Merit Certificate Merit Certificate Merit Certificate Merit Certificate Merit Certificate Merit Certificate Merit Certificate Merit Certificate Merit Certificate Merit Certificate Merit Certificate Merit Certificate Merit Certificate Merit Certificate

CATEGORY 3: FINANCIAL SERVICES SECTOR 1.

2.

3.

4.

5.

6.

IDLC Finance Ltd. Prime Finance & Investment Ltd. Union Capital Ltd. Lanka Bangla Finance Co. Ltd. DBH Finance Ltd. Uttara Finance & Investment Ltd.

First Jointly 2nd Jointly 2nd Jointly 3rd Merit Certificate Merit Certificate

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

CATEGORY 2: PRIVATE SECTOR BANKS (INCLUDING CO-OPERATIVE BANKS)

61

CATEGORY 4: MANUFACTURING SECTOR 1.

2.

3.

BSRM Singer Bangladesh Ltd. GlaxoSmithKline Bangladesh Ltd.

First 2nd Third

CATEGORY 5: COMMUNICATION AND INFORMATION TECHNOLOGY SECTOR 1.

Grameenphone Ltd.

First

CATEGORY 6: SERVICE SECTOR (EXCLUDING FINANCIAL SERVICES & COMMUNICATION & IT SECTOR) 1.

Unique Hotel & Resort Ltd.

Certificate of Merit

CATEGORY 7: NON-GOVERNMENTAL ORGANIZATIONS 1.

2.

3.

4.

BRAC Sajida Foundation Uddipan Buro Bangladesh

First 2nd Third Certificate of Merit

CATEGORY 8: PUBLIC SECTOR ENTITIES (Excluding entities covered under other Sectors/Categories) 1.

Investment Corporation of Bangladesh Ltd.

First

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

CATEGORY 9: CORPORATE GOVERNANCE DISCLOSURES

62

1.

2.

3.

IDLC Finance Ltd. Janata Bank Ltd. Prime Bank Ltd.

First 2nd Third

CATEGORY 10: INSURANCE SECTOR 1.

2.

3.

4.

Green Delta Insurance Ltd. Reliance Insurance Ltd. Prime Insurance Co. Ltd. Eastland Insurance Co. Ltd.

First 2nd Third Certificate of Merit

YEAR WISE LIST OF AWARDEES OF ICAB NATIONAL AWARDS FOR

BEST PUBLISHED ACCOUNTS & REPORTS Year

Categories

List of Awardees

Position

2013

Category 1: Public Sector Bank

Janata Bank Ltd. Rupali Bank Ltd. Bangladesh Dev. Bank Ltd. Prime Bank Ltd. Bank Asia Ltd. Islami Bank Bangladesh Ltd. Eastern Bank Ltd. Dutch-Bangla Bank Ltd.

Jointly 1 st Jointly 1 st Second First Jointly 2 nd Jointly 2 nd Jointly 3 rd Jointly 3 rd

Category 3: Financial Services Sector

IDLC Finance Ltd. Prime Finance & Investment Ltd. Union Capital Lanka Bangla Finance Co. Ltd.

First Jointly Jointly Jointly

Category 4: Manufacturing Sector

BSRM Singer Bangladesh Ltd. GlaxoSmithKline Bangladesh Ltd. Grameenphone Ltd.

First 2nd Third First

BRAC Sajida Foundation Uddipan Investment Corporation of Bangladesh Ltd.

First 2nd Third First

IDLC Finance Ltd. Janata Bank Ltd. Prime Bank Ltd. Green Delta Insurance Reliance Insurance Prime Insurance Co. Ltd Rupali Bank Ltd.

First 2nd Third First 2nd Third First

Prime Bank Ltd. Eastern Bank Islami Bank Bangladesh Ltd.

First 2nd Third

Prime Finance & Investment Ltd. IDLC Finance Ltd. Lanka Bangla Finance Ltd. GlaxoSmithKline Bangladesh Ltd. Singer Bangladesh Ltd. RAK Ceramics (Bangladesh) Ltd. Grameenphone Ltd.

First 2nd Third First 2nd Third First

DESCO

First

Sajida Foundation BRAC Uddipan Islami Bank Bangladesh Ltd. Prime Finance & Investment Limited IDLC Finance Limited

First 2nd Third First 2nd Third

Reliance Insurance Green Delta Insurance

First 2nd Third

Category 5: Communication and Information Technology Sector Category 7: Non-Governmental Organizations Category 8: Public Se Public Sector Entities (Excluding entities covered under other Sectors/Categories) Category 9: Corporate Governance Disclosures Category 10: Insurance Sector 2012

Category 1: Public Sector Banking Institutions Category 2: Private Sector Banks (Including Co -operative Banks) Category 3: Financial Services Sector Category 4: Manufacturing Sector Category 5: Communication and Information Technology Sector Category 6: Service Sector (Excluding Finance Category 7: Non-Governmental Organizations (Including NPOs) Category 8: SAARC Anniversary Award for Corporate Governance Category 10: Insurance Sector

2 nd 2 nd 3 rd

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

Category 2: Private Sector Banks (Including Co -operative Banks)

63

2011

Financial Sector Banks Subject to Prudential Supervision Non Banks Financial Services Sector Insurance Non Financial Sector Manufacturing Communication & IT Non-Governmental Organizations Public Sector Entities

2010

Financial Sector Non-Banking Non Banking Sector- NBFIs

Non Banking Sector Manufacturing Communication & IT Hospitality, Health, Transport & Shipping NGO/NPO Sector

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

2009

64

Public Sector Entities Corporate Governance Disclosure Awards Financial Sector Banking Sector Subject to Prudential Supervision Financial Sector Non-Banking Non Financial SectorManufacturing NGOs/MFIs Public Sector Entities

2008

Financial Sector – Banking Financial Sector- Non Banking Non Financial Sector – Manufacturing

Prime Bank Limited Bank Asia Limited Islami Bank Bangladesh Limited BRAC Bank Limited IDLC Finance Limited Prime Finance & Investment Ltd. LankaBangla Finance Limited

First Second Third-Joint Third-Joint First Second Third

Reliance Insurance Limited Green Delta Insurance Co. Ltd RAK Ceramics (Bangladesh) Ltd. Summit Power Limited GlaxoSmithKline Bangladesh Ltd. Grameenphone Limited Sajida Foundation BRAC Buro Bangladesh Ghashful Agrani Bank Limited Rupali Bank Limited Investment Corporation of Bangladesh Ltd. Green Delta Insurance Reliance Insurance Prime Finance & Investment Ltd. IDLC LankaBangla Finance Limited

First Second First Second Third First First Second Third-Joint Third-Joint First Second Third

GlaxoSmithkline Bangladesh Ltd. Singer Bangladesh Limited Grameephone Ltd. None

First Second Winner

BRAC Sajida Foundation BURO Bangladesh Uddipan Agrani Bank Limited Public Sector-Agrani Bank Ltd. Private Sector-Prime Bank Ltd. Prime Bank Limited Dutch-Bangla Bank Limited Eastern Bank Limited Prime Finance & Investment Ltd LankaBangla Finance Limited Green Delta Insurance Co. Limited Singer Bangladesh Limited Glaxosmithkline Bangladesh Ltd. Berger Paints Bangladesh Limited BRAC BURO Bangladesh SAJIDA Foundation Agrani Bank Limited Palli Karma-Sahayak Foundation (PKSF) Investment Corporation of Bangladesh (ICB)

First Second Jointly Third Jointly Third Winner Winner Winner First Second Third First Second Third First Second Third First Second Third First Second Third

Prime Bank Limited Dutch-Bangla Bank Limited BRAC Bank Limited Prime Finance & Investment Ltd. IDLC Finance Limited LankaBangla Finance Limited Singer Bangladesh Limited Renata Limited GlaxoSmithkline Bangladesh Ltd.

First Second Third First Second Third First Second Third

First Second First Second Third

Public Sector Entities 2007

Financial Sector – Banking Financial Sector - Non Banking Non Financial Sector – Manufacturing NGO/MFIs

2006

Public Sector Entities Financial Sector – Banking

Financial Sector - Non Banking Non Financial Sector – Manufacturing NGO/MFIs 2005

Financial Sector – Banking

Non Financial Sector – Manufacturing

BOC Bangladesh Limited Glaxosmithkline Bangladesh Ltd. Square Pharmaceuticals Ltd. Advanced Chemical Industries Ltd

First Second Third

NGO/MFIs

BRAC BURO Tangail HEED Bangladesh Dutch-Bangla Bank Limited Prime Bank Limited Bank Asia Limited Industrial Development Leasing Co of Bangladesh Ltd. (IDLC) Pragati Insurance Limited Green Delta Insurance Co. Ltd. Square Pharmaceuticals Ltd. Advanced Ch emical Industries Ltd GlaxoSmithkline Bangladesh Ltd. Prime Bank Limited Dhaka Bank Limited IDLC GlaxoSmithkline Bangladesh Ltd. Padma Textile Mills Ltd. Beximco Pharmaceut icals Ltd. Dhaka Bank Limited Arab Bangladesh Bank Ltd Prime Bank Limited Padma Textile Mills Ltd. Beximco Textiles Ltd. Glaxo Welcome Bangladesh Ltd. National Bank Limited Arab Bangladesh Bank Ltd. Beximco Pharmaceuticals Ltd Padma Textile Mills Ltd Glaxo Welcome Bangladesh Ltd.

First Second Third First Second Third First

Financial Sector – Banking

Non Financial Sector – Manufacturing Financial Sector Non Financial Sector 2002

Financial Sector Non Financial Sector

2001

First Second Third First Second Third First Second Third First Second Third First First Second Third (Joint) Third (Joint) First Second First Second Third First Second First Second Third First

Financial Sector - Non Banking

2003

First Second First

Prime Bank Limited Dhaka Bank Limited Dutch-Bangla Bank Limited Industrial Development Leasing Co of Bangladesh Ltd. (IDLC) Green Delta Insurance Co. Ltd.

Financial Sector - Non Banking

2004

BRAC Buro Investment Corporation of Bangladesh (ICB) Prime Bank Limited Dutch-Bangla Bank Limited Dhaka Bank Limited Prime Finance & Investment Ltd IDLC Finance Limited LankaBangla Finance Limited Square Pharmaceuticals Ltd. Bangladesh Berger Paints Bangladesh Limited Singer Bangladesh Limited BRAC Sajida Foundation Buro Investment Corporation of Bangladesh Prime Bank Limited Dhaka Bank Limited Bank Asia Limited Mercantile Bank Limited Prime Finance & Investment Limited IDLC Finance Limited Glaxosmithkline Bangladesh Ltd. Berger Paints Bangl adesh Limited Beximco Pharmaceuticals Limited Buro Bangladesh BRAC

Financial Sector Non Financial Sector

Second

Second Third First Second Third First Second Third First Second Third First Second Third First Second Third First Second First Second Third

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

NGO/MFIs

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PROFILES OF THE

WINNING

COMPANIES/ORGANIZATION

PROFILES OF THE WINNING COMPANIES

Corporate Background In terms of the Presidents Order No-26 of 1972 vide Bangladesh Banks (Nationalization) order 1972, the erstwhile United Bank Limited and Union Bank Limited were merged and renamed as Janata Bank and subsequently, the bank becomes corporatized and renamed as Janata Bank Limited on15th November, 2007 through venders agreement with a new concept of purposeful banking service to cover the growing and diversified financial needs of planned economic development of the country. The bank has been operating its business throughout the country and abroad with a network of 897 branches including 4 overseas branches along with 15485 employees. Out of the 897 branches 450 branches are located in urban areas and 443 branches in rural areas. The net profit of the bank is 955.14 Crore in 2013 which was the highest of JBL history.

The registered office of the company located at 110 Motijheel C/A, Dhaka-1000.

In compliance of the guidelines of Bangladesh Bank, Janata Bank has converted its merchant banking unit into a separate subsidiary company titled Janata capital and Investment Company limited having the objectives to work independently as Issue Manager, Underwriter and Portfolio manager. The company got registered with Register of Joint Stock Companies and Firms on 13 April 2010. On the other hand, Janata bank has another subsidiary company named Janata Exchange Company SRL, Italy has been established on 18 January 2002. JEC started its operation with one branch only in Rome and later on another branch was set up at Milan.

Modernization Keeping in consideration the increasing demand of the customers, Janata bank limited is tirelessly working to design and develop new banking products with quality customer service. To this end, Janata bank limited has launched self developed JB online Deposit/Payment System. Besides, all out efforts are being under way to materialize the slogan of ‘Digital Bangladesh’ through proper use of existing workforce and resources of the bank. Real time online banking has begun at 42 in 2013. Computerization of all our branches has been completed by 2013.Notable that, the bank computerized its 315 branches with self developed ‘JBSoft’ banking application software. To expedite the payment of foreign remittance all our branches have been brought under speedy foreign remittance System. Apart from, the bank has first introduced a website with domain name www.janatabank-bd.com.

Bangladesh Bank has declared credit rating of commercial banks mandatory and to be conducted by recognized rating agencies. Accordingly Alpha credit Rating Limited (ACRL) has conducted Janata Bank’s rating based on financial statement of the year ended on 31 December 2013. As a state-owned organization bank was rated “AAA” in long run and “AR-1” in the short term and as a scheduled commercial bank, Janata bank was rated “A+” in long run and “AR-2” in the short term in 2013.

Capital adequacy In accordance with the international practices, Janata bank limited has been following Capital adequacy Ratio based on Basel-II guidelines under-2010. the bank maintained capital adequacy according to Basel-II requirements and has already taken various decision and measures including framing five-year capital plan to meet Basel III compulsion. As a result, overcoming capital deficit of 2012, Janata bank limited has been able to preserve 10.27% capital adequacy which is highest after implementation of Basel-II. The capital adequacy ratio of the bank is good and in line with the requirement under Basel-II.

Contribution in National Exchequer JBL has contributed significantly to the governments drive in collection in revenue. As per law, the bank deducts taxes, vat and excise duty at source from various payments and services and deposits the same to governments exchequer. Besides, the bank also pays income tax on its earnings. Every year JBL pays income tax on behalf of its officials/employees. In 2013 total payment to government exchequer is about 832.76 Crore.

Green Banking With a view to protecting the environment and conserving natural resources and combating against climatic changes, the concept of green banking evolved as a proactive smart way of thinking with a vision for future sustainability of the world. This is why, for avoiding much paper-work, rather relying on online/electronic transactions and financing to bio-gas plant, solar panel, renewable energy plant, and tree plantation etc, JBL has formed a Green Banking Unit and has been adopted various measures to ensure Green Banking.

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

Credit Rating

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PROFILES OF THE WINNING COMPANIES

Corporate Social Responsibility (CSR) In recent time Corporate Social Responsibility (CSR) has got more acceptability than maximization of profit.

JBL has taken CSR activities as a component of continues development. Since inception, Janata bank is playing a leading role in Corporate Social Responsibility (CSR) activities among the state owned commercial banks. Janata bank limited distributed BDT 113.38 million in the year 2012 and BDT 292.20 million in 2013 as assistance to different sectors comprising down trodden people. Number of beneficiaries in 2013 is 3995.

Among the recipients, health care and education have been considered as thrust sectors. Information technology has also been emphasized. Not only that, it has introduced interest free loans to the landless and marginal farmers in the aila, sidr and monga prone areas. This has not only recognized by the Bangladesh bank but also suggested other scheduled bank to implement it.

Financial inclusion Access to finance by the poor and vulnerable groups is a prerequisite for poverty reduction and social cohesion. JBL is dedicated to serve financial services at an affordable cost to the vast section of the less privilege and low income groups. To facilitate financial inclusion JBL has introduced various products and services such as 10 taka accounts for farmers and Beneficiaries under safety net programs, Account for freedom fighters, Mobile banking services to the customers under “Ghore Ghore Khudro Sanchoy Prokolpa” and “JB speedy remittance, deposits & payment system” among others.

Awards and Recognition In recognition of outstanding performance and good governance JBL achieved several prestigious national and international awards in different times. In 2013, JBL has received `Performance Excellence Award-2013' by the Citi Bank, N. A. and Asian banking & finance wholesale and retail banking award-2013.

Key Financial Information

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

Particular

68

Balance Sheet Matrix Authorized capital Paid up capital Reserve fund & surplus Total shareholders' equity Capital employed Deposits Loans and advances Investments Property, plant & equipment (Fixed Assets) Total assets Total off balance sheet exposures Earning assets Non -earning a ssets Net Assets Income Statement Matrix Interest income Investment income Non -interest income Total income Interest expenses Non -interest expenses Total expenses Net interest margin (NIM) Net non -interest expenses Operating pro fit

Earnings before provision, depreciation and tax

Profit before provision & tax Profit before tax Net profit after tax Capital Matrix Risk weighted assets (RWA) Total required capital Total regulatory capital maintained Capital surplus/(Shortfall) Capital adequacy ratio (CAR) Core capital ratio Supplementary capital ratio Amount of core capital (Tier-I) Amount of supplementary capital (Tier-II)

(BDT in million unless stated otherwise)

2013 20,000.00 19,140.00 17,976.20 37,116.20 310,499.24 478,535.57 285,747.65 193,269.66 9,724.84 586,082.98 99,726.43 461,290.06 124,792.92 37,116.20

2012

2011

2010

2009

20,000.00 11,000.00 6,476.66 17,476.66 292,026.69 409,767.01 305,339.57 108,342.04 9,462.69 511,129.41 112,558.95 379,867.18 131,262.23 17,476.66

20,000.00 8,125.00 25,944.20 34,069.20 246,852.15 36 1,676.69 257,801.03 95,257.29 9,683.34 446,111.42 151,206.83 376,071.00 70,040.42 34,069.20

20,000.00 5,000.00 15,390.32 20,390.32 178,217.85 286,566.84 225,732.21 57,514.00 6,299.91 345,234.00 106,227.86 293,020.00 52,214.00 20,390.32

20,000.00 5,000.00 9,924.74 14,924.74 41,407.31 246,175.04 166,359.48 72,533.20 2,685.19 294,727.00 73,518.27 248,633.00 46,094.00 14,924.74

36,189.68 13,736.50 5,145.67 55,071.85 34,212.83 8,731.92 42,944.75 1,976.84 3,586.25 12,127. 10 12,513.16 12,127.10 10,625 .32 9,551.39

34,239.12 7,811.43 7,465.08 49,515.63 27,499.16 7,4 82.67 34,981.83 6,739.96 17.60 14,533. 80 14,861.54 14,533.80 (12,834.90) (15,280.34)

26,266.12 6,109 .83 8,259.58 40,635.53 17,785.82 7,127.40 24,913.22 8,480.30 (1,132.18) 15,722.31 15,957.83 15,722.31 8,875.67 4,444.91

19,027.54 6,956.05 4,630.33 30,613.92 11,960.33 6,617.19 18,577.52 7,067.21 1,986.86 12,036.40 12,200.59 12,036.40 7,820.43 4,907.97

14,867.96 5,602.31 3,603.83 24,074.10 10,376.98 5,119.00 15,495.98 4,490.98 1,515.17 8,578.12 8,701.14 8,578.12 5,656.29 2,804.25

333,923.30 33,392.33 34,301.0 3 908.71 10.27% 7.85% 2.42% 26,225.67 8,075.36

318,980.32 31,898.03 11,780.36 (20,117.67) 3.70% 1.85% 1.85% 5,890.18 5,890.18

306,426.40 30,642.64 31,242.01 599.37 10.20% 7.20% 2.99% 22,067.76 9,174.24

255,255.70 22,973.01 23,454.00 480.99 9.19% 5.65% 3.54% 14,417.46 9,036.60

106,927.33 10,692.73 11,571.00 878.27 13.81% 8.79% 5.02% 9,394.92 5,370.01

PROFILES OF THE WINNING COMPANIES

Genesis Rupali Bank Limited (RBL) was incorporated as a Public Limited Company on 14 December 1986 under the Companies Act, 1913 and has taken over the business of Rupali Bank (emerged as a Nationalised Commercial Bank in 1972, pursuant to Bangladesh Bank Nationalization Order 1972(P.O.No. 26 of 1972) as a going concern through a vendor agreement signed between the Ministry of Finance, People's Republic of Bangladesh on behalf of Rupali Bank and the Board of Directors on behalf of Rupali Bank Limited on 14 December 1986 with a retrospective effect from 14 December1986.

Corporate Objectives •

We are committed to following best practices resulting in good corporate governance.

•

We wish to gain customer confidence and be their trusted partner.

•

We believe in fair treatment to all customers, depositors, borrowers, clients, shareholders, stakeholders and clients without any discrimination.

•

We ensure the highest level of integrity to our customers creating an ongoing relationship of trust and confidence.

•

We recognize that employees are our most valuable asset and our competitive strength.

•

We believe in good governance, internal control, compliance and transparency.

•

We are committed to environmental and social obligations.

Listing with Dhaka & Chittagong Stock Exchange Shares of the Bank have been listed in the Dhaka Stock Exchange on 22 December 1986 and Chittagong Stock Exchange on 27.12.1995. The commencement of trading with DSE & CSE was on 19 August 1987 and 27 December 1995 respectively.

Core Business The principal activities of the bank are banking and related activities such as accepting deposits, personal banking, trade financing, SME, trade and services, cash management, treasury, securities and custody services, remittance services etc.

Rupali Investment Limited (RIL) Rupali Investment Limited, a wholly owned subsidiary company of Rupali Bank Limited, was incorporated on 31 March 2011 as a public limited company bearing registration No-27899 under-Companies Act 1994 with an authorized share capital of Tk. 500.0 (five hundred) crore.

Rupali Bank Securities Limited (RBSL) Rupali Bank Securities Limited is a subsidiary company of Rupali bank limited was incorporated as a Private Limited Company on 29th August, 2013 vide registered of Joint Stock Companies and Firms, Dhaka certificate of incorporation No. C-110969/13 under Companies Act 1994.

Efficient Capital and Strong Asset Quality We maintained 10.16% capital adequacy ratio (CAR) in 2013 which is more than required capital adequacy.

The non-performing loan ratio of the Bank decreased to 17.48% in 2013 from 26.07% in 2012

Credit Rating Alpha Credit Rating Limited (Date of Declaration 09, May 2013) affirmed long term rating of RBL to "A" and short term rating to "AR-2" National Support-"AAA" based on financials up to December 31, 2012.

Awards & Recognition Rupali Bank Limited won several prestigious awards for its best published accounts reports from the following renowned organizations: •

Rupali Bank Limited won the SAFA Best Presented Annual Report Awards and SAARC Anniversary Awards for Corporate Governance Disclosures 2012 in the Public Sector Banking Institutions category.

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

Subsidiary Company

69

PROFILES OF THE WINNING COMPANIES

•

The Bank received the First Prize of the 13th ICAB National Awards for Best Presented Annual Reports 2012 in the public sector banking institutions.

•

RBL has received the First Prize in the State owned Commercial Bank Section the ICMAB Best Corporate Award 2013 presented by the Institute of Cost and Management Accountants of Bangladesh (ICMAB).

•

RBL won the SAFA Best Presented Annual Reports Award and SAARC Anniversary Award for Corporate Governance 2011 in the Public Sector Banking Institutions category secured First Position.

•

The Bank received the First Prize of the 12th ICAB National Awards for Best Published Accounts Reports 2011 in the public sector banking institutions.

•

Rupali Bank Limited has received the Second Prize in the State owned Commercial Bank Section the ICMAB Best Corporate Award 2012 presented by the Institute of Cost and Management Accountants of Bangladesh (ICMAB)

•

RBL won the Second Prize of the 11th ICAB National Awards for Best Published Accounts Reports 2010 in the Public Sector Entities status.

•

RBL has also received in the State owned Commercial Bank Section the ICMAB Best Corporate Award 2011 presented by the Institute of Cost and Management Accountants of Bangladesh (ICMAB).

Authorised Capital Paid-up Capital Reserve & Retained Earnings Number of Employees Number of Branch

: : : : :

Tk. 700 Crore Tk. 181.50 Crore Tk. 1000.47 Crore 5669 528

Number of Urban Branch No. of Rural Branch No. of Divisional Office Number of AD Branch

: : : :

304 224 10 29 Authorised

Graphical Presentation

2013

10742.63

7652.49

2009

2010

2011

2012

2.22

4.37

2013

2013

Earnings per share (Taka)

13.35

2012

65.20

79.40

136.60

2011

2013

3.42%

10.34

2012

2013

Market price per share (Taka)

2010

2012

6.64

2012

2011

6.61

2011

2010

205.26

367.46

244.69

360.36

209.87

2010

2009

Return on equity (%)

Operating profit (Taka in crore)

2009

6604.90

2012

5234.42

2011

17795.64

13659.88

9112.38

10723.40

7380.34

2010

157.95

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2009

9064.16

Loans & advances (Taka in crore)

Deposit (Taka in crore)

2013

PROFILES OF THE WINNING COMPANIES

(Amalgamated by Former BSB & BSRS)

Preamble With the decision of the Government, Bangladesh Development Bank Ltd. (BDBL) was incorporated on 16 November, 2009 as a Public Company Limited by shares under the Companies Act, 1994 by amalgamation of former Bangladesh Shilpa Bank (BSB) and Bangladesh Shilpa Rin Sangstha (BSRS), two Development Financial Institutions (DFIs) in the public sector.

Bangladesh Shilpa Bank (BSB) was established in October 31, 1972 for accelerating the industrial pace of the country through providing loan and equity to the industrial projects as per Bangladesh Shilpa Bank Order, 1972 (President’s Order No. 129 of 1972).

With the same objective, Bangladesh Shilpa Rin Sangstha (BSRS) was also established in October 31, 1972 as per Bangladesh Shilpa Rin Sangstha Order, 1972 (President’s Order No. 128 of 1972).

In order to carry on business of BDBL, Bangladesh Bank issued banking licence on November 19, 2009.

Two Vendors’ Agreements were signed between the Government of the People’s Republic of Bangladesh and the BDBL on December 31, 2009 to acquire and take-over all of their (BSB & BSRS) assets, benefits, rights, powers, authorities, privileges, liabilities, borrowings and obligations and to carry on with the same business.

As a Public Limited Company, BDBL formally embarked its journey on January 03, 2010. It extends financial assistance for setting up industries and provides all kinds of commercial banking services to its customers through its branch network in Bangladesh. Being an amalgamated institution, BDBL has drawn its vision, mission and strategic priorities considering the competitive business environment.

Vision To emerge as the country’s prime Financial Institution for supporting private sector industrial and other projects of great significance to the country’s economic development. Also be active participant in commercial banking by introducing new lines of products and providing excellent services to the customers.

•

To be competitive with other Banks and Financial Institutions in rendering services ;

•

To contribute to the country’s socio-economic development by identifying new and profitable areas for investment ;

•

To mobilize deposit for productive investment ;

•

To expand Branch network in commercially and geographically important places ;

•

To employ quality human resources and enhance their capability through motivation and right-type of training at home and abroad ;

•

To delegate maximum authority ensuring proper accountability ;

•

To maintain continuous improvement and up gradation in business policies and procedures ;

•

To adopt and adapt to new technology ;

•

To maximize profit by strong, efficient and prudent financial performance ; and

•

To introduce new product lines according to market needs.

Core Values Professionalism We are committed to provide the best of our attention and ability for discharging our task, roles and responsibilities and continually upgrading our skill and knowledge base keeping abreast with ongoing local and global developments for attaining excellence in banking businesses.

Transparency & Accountability We are committed to remain transparent and accountable to our stakeholders in discharging our responsibilities.

Customer Focus We maintain strong customer focus and build relationships based on integrity, trust, commitment, timely solution and mutual benefit to accelerate the growth.

Corporate Social Responsibility We promote protection of the environment for our children and are law-abiding in all that we do.

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

Mission

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PROFILES OF THE WINNING COMPANIES

Strategic Priorities 

Invest in Eco-friendly industries that help mitigate environmental degradation by lending more for renewable energy, and effluent treatment plants and other projects that employ energy efficient low-emission technologies including agro-based industries, small power projects, ICT, transport and infrastructure projects.



Select and invest in industrial projects where locational advantages like local availability of raw materials, good infrastructural facilities (road communication, transport facilities, etc.) and utilities (power, gas, water, etc.) shall be available.



Identify prospective and potential entrepreneurs and investors / clients and motivate, guide and help them select profitable industrial venture for investment.



Regularly publish financial disclosures.



Undertake from time to time SWOT (Strengths, Weaknesses, Opportunity and Threats) analysis for reviewing Bank and its market position.

Subsidiary Companies The BDBL inherited membership of Dhaka Stock Exchange Limited (DSE) and Chittagong Stock Exchange Limited (CSE). In order to contribute to the development of capital market, two subsidiary companies namely, (1) BDBL Securities Limited, 12, Karwan Bazar, Dhaka and (2) BDBL Investment Services Limited, 8, Rajuk Avenue, Dhaka have been formed. These companies act as stock dealer and stock broker to provide services to the small and medium investors.

Branch Network As a part of inclusive banking, BDBL’s strategy is to reach the doorsteps of the customers / entrepreneurs to provide full range of banking services based on technology at reasonable cost. As of now with 29 branches and 4 zone offices in different parts of the country including its Head Office at 8, Rajuk Avenue, Dhaka, BDBL has been continuously providing desired services to the customers and entrepreneurs.

Credit Rating Report In 2013, BDBL was rated by Credit Rating Information and Services Ltd.(C RISL). It assigned its rating to A (pronounced as single A) in the Long Term and 'ST-2' in the Short Term along with stable outlook through an in-depth analysis of the operational and financial performance of the Bank along with all its relevant quantitative and qualitative factors.

Information & Communication Technology

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

BDBL started widely using computer technology for automation of its various banking operations. Many important jobs of the Bank are currently automated. The Information Technology (IT) Division of the Bank is responsible for managing automation of banking operations with a team of highly skilled personnel both in technical and business areas to handle IT operation. The Bank has formulated its ICT policy and prepared IT manual. IT policy is upgraded as per Bangladesh Bank's Guidelines in which proper directives were provided for each and every operation of the Bank related to ICT.

72

Branch Computerization BDBL took several steps over the years for Branch automation. At present, 29 Branches are fully computerized by using LAN and Branch Banking Software. Beside this, 26 Branches out of 29 Branches installed Bangladesh Automated Clearing House (BACH) software. Most of the Branches also got the facility for Electronic Fund Transfer (EFT) and 5 AD (Authorized Dealer) Branches are using SWIFT software. BDBL so far made progress in the following areas : •

Website ;

•

Online Banking ;

•

BACH & BEFTN ;

•

E-MAIL ; and

•

SWIFT

Brand Image It is well known that BDBL was established through amalgamation of BSB and BSRS. These two institutions, BSB and BSRS, being the prime DFIs has created a brand image for accelerating the pace of industrial development of the country. After amalgamation, it has become a Public Limited Company and running its business activities as a state-owned specialized Bank.

Employees are being well trained to provide smart and efficient services to enhance the Brand Image further, where focus on customers, quality services to the customers and customers’ right are prime concern. It is one of the major objectives of BDBL to make it different from others in respect of economic, commercial and social services.

PROFILES OF THE WINNING COMPANIES

Established in April, 1995 by a group of visionary entrepreneurs conceive an idea of floating a commercial bank with different outlook. Prime Bank is known for its superior service quality, brand image, strong corporate governance and corporate culture. Committed for excellence, Prime Bank is a top-tier bank in Bangladesh and reputed among regulators as distinctly ‘compliant’ and among customers as agile and responsive to change. A Bank aligned to its vision, mission, values and strategic priorities.

Business Strategy The bank is driven by key business areas, namely Corporate Banking, SME & Retail and Islamic Banking. These are competently supported by other functions such as Operations, IT, R&D, Marketing, HR, Procurement, Risk Management, Compliance, Internal Audit and Financial Administration etc. In addition, the global subsidiaries- Prime Exchange Co. Pte Ltd. Singapore, PBL Exchange (UK) Limited, PBL Finance (Hong Kong) Limited; and our local subsidiary Prime Bank Investment Limited (PBIL) and Prime Bank Securities Limited.

High on our list of strengths are our growing customer base,our highly trained and motivated staff, our superior technological platform, IT driven processes and our highly developed work ethic and culture. Prime Bank has always been a very customer centric Bank maintaining the highest levels of engagement with its customers. This was reinforced by the highly visible initiatives taken to make our services more accessible and convenient. Our channel expansion and subsequent presence within top tier supermarket chains has significantly enhancedaccessibility and convenience in respect of the customer. Likewise, our upgraded Internet banking platform is extremely user friendly, a factor that will aid in our efforts to promote its usage among most of our customers. Both of these initiatives have made transacting business with Prime Bank much easier. We are also reinforcing the ‘personal touch’ through more optimal staff management and deployment whilst centralization and automation frees up time at our branches to better serve customers. Our footprint in the country has widened considerably this year with 138 branches and 158 ATMs plus on line banking services. The Bank has also strengthened infrastructure and enhanced productivity by maximizing our IT capabilities and upgrading our risk management system.

We work for increasing savings to contribute towards country’s economic development. We have introduced a new deposit product named My First Account for students that received wide response of the young generation. The Bank always stressed upon maintaining efficient deposit mix. Customer deposits of the bank have been growing substantially. The growth was supported by branch network, innovative IT based products and superior services along with liability campaigns carried out throughout the year. As a stable funding base, scheme deposits continued to rise resulting in a growth of 20 percent.

Capital Adequacy Ratio In maintaining adequate capital against overall risk exposure of the Bank, our guiding philosophy has been to strengthen risk management and internal control. PBL’s regulatory capital as on December 31, 2013 stood at Tk. 2649.54 million. Whereas, the Capital Adequacy Ratio (CAR) was 12.04% under Basel-II, as per Central Bank’s minimum capital requirement of 10.00%.

Economic Capital for Efficient Asset Management In the wake of the global credit crisis, it is very important to implement the concept of economic capital, which will act as a safety cushion for the bank. Still reeling from the effect of unanticipated losses, a large number of banks are now struggling to conserve and manage capital. In 2013, credit risks continued to be ferment and fuelled in driving up market volatility. In such a market, the capability to manage the banking business in a risk-sensitive Economic Capital framework becomes necessary. Bankers have had no other choice but to reallocate or even reduce their portfolios. We are carefully considering the potential unexpected losses, thus bringing up the concept of economic capital that is associated with each individual activity to minimize the risks of the Balance Sheet and safeguard the interest of the stakeholders.

ALM We continued to have a firm grip on the levers of risk, cost and investment, and using our balance sheet strength to increase the financing support to our customers. Deposit increased by Tk 19,854 million during 2013 with an impressive

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

Strong Deposit Base

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PROFILES OF THE WINNING COMPANIES

growth rate of 11 percent. We maintained a well-diversified Loans & Advances portfolio and at the same time continued to take the conservative approach to manage the balance sheet, maintain a strong liquidity position and keep a watchful eye on asset quality given the uncertainties that remain in the external environment. Retail deposits were mobilized by providing competitive and superior products while corporate deposits have been collected with corporate deposit campaign. Thus, high cost of fund been managed with adequate focus on no and low cost fund. Thus, sector wise the Bank maintained optimum exposure with due concentration on SME and Retail assets. The Bank adequately diversified its investment through project finance, SME and Retail. Funds under Corporate, SME and Retail stood at Tk 115.71 billion, 18.65 billion and 12.14 billion respectively.

Environment-friendly Banking We have incorporated sustainability principles into day-to-day activities of the bank. Our aim is to do best to ensure that the credits we extend to our customers are utilized for environmentally sound and sustainable purposes. As per Environmental and Social Risk Policy, i.e. “Environmental Blueprint” of the bank approved by the Board, all business units must recognize the social concerns and impact on the environment caused by their customers before taking business decisions. Green banking considers all the social and environmental factors along with financial priorities with an aim to protect the environment as well as to foster the economic development in a more environment friendly way. It covers a multitude of areas from a bank being environmentally friendly to how their money is invested. To reduce carbon emission, green house effects, dependency on traditional energy, natural gas as well as reduce the environmental degradation, PBL has established a separate cell called “Green Financing Cell” for financing under refinance scheme of Bangladesh Bank to set up of Effluent Treatment Plant (ETP), Bio-gas Plant, Solar Energy (i.e. Solar panel, Solar home System, Solar mini Grid, Solar irrigation pumping system, Solar PV Assembly plant), Water Electricity Plant, PET bottle reprocessing plant, Hybrid Hoffman Kiln (HHK) etc. The Green Banking Cell (GBC) have been formed with the task of developing policies, products, planning, reporting to management and Bangladesh Bank and overseeing the overall green financing activities of the bank.

Our Strategic Priorities

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

Sustainable business growth, dynamic and talented human capital driven by values, excellent risk management, and involvement of mid-level management in decision-making process will surely command some key strength for Prime Bank. We believe that, as long as we adhere to the right development strategy, take pro-active actions and forge ahead determinedly, 2015 will be full of hopes and harvests. Few of the major tactical and strategic moves that have been chalked out to drive for the current year are:

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•

Diversify loan portfolio to avoid excessive concentration to particular sectors as well asto invest funds in the productive sectors.

•

Grow business in SME and Retail portfolio at least by 40%.

•

Implement Economic capital framework to derisk the Balance Sheet for the potential associated unexpected losses.

•

Greater emphasis to serve unbanked and under-banked population of the country.

•

Allocation of capital through customer account review and transaction analysis upon determination of Risk Adjusted Return on Capital.

•

Strengthen Information Technology to ensure security of technology and enable safer banking service to customers.

•

Monitor and strengthen recovery drive to bring down the NPL below 3% to maintain asset quality at standard level.

•

Formation of Head line Business Banking Team to provide priority service to our valued customers to ensure better services with maximum satisfaction for more business.

Our Commitments PBL is committed to deliver value to its stakeholders. PBL will continue to provide effective and competitive financials solutions and services to its customers. It will continue to enhance the shareholders’ value through consistent financial performance and efficient capital management. PBL will foster a strong performance and learning culture that allows the development and talents of its employees so that they can effectively play the role of PBL Brand Ambassador.

PROFILES OF THE WINNING COMPANIES

Bank Asia at a glance Bank Asia started its journey on November 27, 1999 with an aim to be fully customer focused through rendering technology driven innovative products and services. The Bank obtained Certificate of Incorporation and Certificate of Commencement of Business on September 28, 1999 and banking license on October 06, 1999. Subsequently the Bank was listed with Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) on January 06, 2004. Since inception Bank Asia is working efficiently and achieving a strong prominent position in banking sector. By this time Bank Asia has consolidated its strength manifold through extending its business rapidly while ensuring sustainable growth. Bank Asia started its most cherished Islamic banking operation in 2008 for providing strict Shariah based products. It established its 1st subsidiary company named “Bank Asia Securities Limited” on March 16, 2011 and another subsidiary company “BA Exchange Company (UK) Limited” in United Kingdom in the same year. After successful operation of 1st overseas, Bank Asia obtained license for its 2nd overseas 100% subsidiary company BA Express USA Inc. at NY, USA. However, during 2013, the Bank rendered services through its 86 Branches including 4 Agri/SME branches, 5 Islamic Windows, 6 SME Service Centers, 1 Off-shore Banking Unit, and 3 Subsidiary companies.

Vision & Mission Bank Asia’s vision is to have a poverty free Bangladesh in course of a generation in the new millennium, reflecting the national dream. Our vision is to build a society where human dignity and human rights receive the highest consideration along with reduction of poverty.

To assist in bringing high quality service to our customers and to participate in the growth and expansion of our national economy.

To set high standards of integrity and bring total satisfaction to our clients, shareholders and employees.

To become the most sought after Bank in the country, rendering technology driven innovative services by our dedicated team of professionals.

Bank Asia offers a wide range of products and services to customers all over Bangladesh related to Business Banking, Small and Medium Enterprise (SME), Consumer Finance, Credit Card, Treasury and Foreign Exchange, Islamic Banking, Off-shore Banking, Capital Market Services etc. For strengthening the ongoing financial inclusion and with an aim to serve both the banked and under-banked population of Bangladesh, Bank Asia has started the operation of Agent banking on Dec 4, 2013.

Credit Rating Rating

2013

2012

Long Term

AA3

AA2

Short Term

ST2

ST1

Awards & Recognition in 2013 

Certificate of Merit from the Institute of Chartered Accountants of Bangladesh (ICAB) for Best Presented Annual Reports-2012 in the Private Sector Banks including Cooperative Banks.



Certificate of Merit in the SAARC Anniversary Award for Corporate Governance from the Institute of Chartered Accountants of Bangladesh (ICAB).



Certificate of Merit from the Institute of Cost and Management Accountants of Bangladesh (ICMAB) for Best Corporate Award 2013.



Achieved commendation for first time Sustainability Report 2012 in the 9th Sustainability Reporting Awards by National Center for Sustainability Reporting (NCSR) in Pejaten, Jakarta for Sustainability Report 2012 of Bank Asia.

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Products & Services

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PROFILES OF THE WINNING COMPANIES



Most Progressive Reporter 2012 Award by National Center for Sustainability Reporting (NCSR) in Pejaten, Jakarta for Sustainability Report 2012 of Bank Asia.



Recognized by Bangladesh Bank as one of the top 10 commercial banks for significant contribution to green banking in Bangladesh.

Performance at a glance (Banking Operation)

Million Taka

Particulars Deposits

2013 133,489.37

2012 110,061.78

2011 95,131.10

2010 86,365.64

2009 54,832.82

Loans & advances Import Export Remittance (inward) Total Assets Total Shareholders’ equity Total Capital Capital adequacy ratio Total income Total Expenditure Operating Profit Net Profit Return on Assets Return on Equity Cost of deposit Administrative cost Yield on loans and advances Spread Earnings per share (Taka)

104,911.26 110,738.08 71,968.83 34,334.40 163,777.74 14,617.70 15,574.85 11.05% 19,699.15 14,283.38 5,415.76 1,459.82 0.96% 10.55% 8.81% 2.63% 14.99% 6.18% 2.10

92,328.82 106,746.15 66,478.34 32,110.10 140,361.37 13,045.17 13,930.19 13.05% 17,437.02 12,385.22 5,051.80 908.00 0.70% 7.11% 9.49% 2.82% 15.20% 5.71% 1.44

82,819.97 99,414.20 74,794.50 21,776.70 117,729.41 12,478.93 12,447.33 14.88% 14,606.10 10,564.13 4,041.97 1,916.21 1.72% 19.61% 9.09% 2.88% 14.11% 5.02% 3.65

79,504.23 110,417.89 57,281.67 18,441.71 105,198.05 7,059.94 8,156.96 8.11% 12,091.58 7,842.72 4,248.86 1,929.58 2.22% 32.12% 7.15% 2.08% 12.72% 5.57% 6.43

50267.92 67,378.30 30,953.40 15,555.10 68,663.20 4,954.14 5,538.17 10.01% 8,627.52 6,010.48 2,617.04 1,327.18 2.18% 32.03% 8.97% 2.76% 13.95% 4.98% 6.19

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

Corporate Social Responsibility (CSR)

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Bank Asia Ltd, from the very beginning, focused CSR activities as a part of its culture, identity and business practice. The basic driver of our CSR practice consists of values that have been taken place within business where our efforts continues to look beyond short-term quantitative gains, and concentrate on issues that make the bank a socially responsible institution. We are committed to social and environmental well being and strive to ensure sustainable balanced growth in economic, social and ecological arena. In the year 2013, Bank Asia spent an amount of Tk. 132.97 million to perform various CSR activities alongside its three major programs – Higher Study Scholarship, Ophthalmological Operation and Operating Computer Learning Centers (CLCs) i.e. for the overall betterment of the nation.

PROFILES OF THE WINNING COMPANIES

Pioneer in welfare banking Islami Bank Bangladesh Limited (IBBL), the first Shariah based bank in South East Asia was established in March 1983 with a paid up capital of only BDT 80.00 million. With 68:32 shares of foreign and local sponsors now, the bank aims at transforming lives of the teeming millions by way of reaching the benefits of Islamic banking through financial inclusion. IBBL has now got diversified exposure from agriculture to industry, retail to corporate and microfinance to SME. With a workforce of 13000 plus, unique in commitment and dedication, the bank has a customer base of 9.5 million, 0.87 million of which in microfinance covering 17,370 villages.

In foreign remittance, IBBL alone takes more than one fourth of the country share. The bank has sizeable contributions in CSR activities viz. disaster management, education, health, sports, art & culture environmental protection etc. With a branch net work of 290 now, all connected on-line and with more focus on automation, the bank is poised to take long strides in connecting with people and moving towards achieving its vision. The potentials and contributions are prominent in its making, set-up and activities, which are penned in the followings:

Strong Equity Base IBBL has a strong equity base, which is the highest in the banking sector of Bangladesh. It has been maintaining comfortable Capital Adequacy Ratio much higher than minimum level required. The consolidated Capital Adequacy of the bank stood at 13.16% as on 30.09.2014. IBBL has been ranked for three consecutive years as one of the top 1000 World Banks by “The Banker”, the world's premier banking and finance magazine for Performance, Tier-1 Capital, and Return on Asset (ROA), Soundness of Capital Asset Ratio and Size of Asset.

In-built Financial Inclusion The bank tends to design its products and services so as to facilitate financial inclusion. The basket of products and services include from 10 Taka account for farmers, students’ accounts, industry workers’ account to different other array of products like Hajj, Muhar and waqf accounts. On the deployment side, we have diversified schemes to meet specific needs like Household Durables Scheme, Car Investment Scheme, and Investment Scheme for Doctors, Small Business Investment Scheme, Agricultural Implements Investment Scheme, Micro Industries Investment Scheme, Women Entrepreneurs Investment Scheme, Rural Housing Investment Scheme, NRB Entrepreneurs Investment Scheme etc.

The investment portfolio of the bank is well diversified in terms of size, sector, economic purpose and geographical locations. IBBL has been playing leading role in Industry, SME, Agriculture, Micro finance, Real estate sector etc. The bank ventured in the journey of industrialization of the country especially in the RMG (Readymade Garment) and textile industry of the country which is the largest employer of the country and the highest foreign currency earner for the country. Textile and RMG takes a sizeable share in the bank’s Investment portfolio amounting over BDT 100 billion, the largest in the country. Apart from textile, Industrial investments go to different other sectors like power, steel, pharmaceuticals, sugar, edible oil, cable and agro based industries. IBBL has got 17% share in the country’s SME investment and it is above 40% of bank’s total investment portfolio.

Foreign Remittance One of the most important success stories of the bank is the gaining the confidence of the large majority of the expatriates through its service and handling capacity that allowed the bank to take a share of more than 27% of the country remittance. The bank had pioneered in popularizing the remittance through official channel. A good number of officials of the bank are engaged in remittance marketing in the source countries.

The foreign remittance services of the bank is also centralized which allows the bank to handle such large amount and number of remittance with only 290 branches which is very low compared to the state owned banks.

In-built CSR Initiative IBBL’s CSR is inbuilt in its operations with the idea that it is not charity but a responsibility. IBBL is extending Medicare facilities through its 13 hospitals at a minimum cost. Its humanitarian assistance includes supporting distressed people in natural disasters, providing assistance for treatment of fatal diseases, awarding scholarship to meritorious and poor students. The bank is playing significant role in sports and culture to build a healthy and productive young generation. IBBL does not finance on sector that harms individuals or a society or environment. IBBL is paying Zakat on the applicable assets to perform its religious obligation as per Islamic Shari’ah.

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Diversified Investment Exposure

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PROFILES OF THE WINNING COMPANIES

Strong Brand Image IBBL’s comfortable capital adequacy, good assets quality, good financial performance, comfortable liquidity, strong market position, considerable improvement in non-funded business, experienced top management, wide operational network & efficient corporate governance have given it an excellent “Brand Image”. Islami Bank is continuously upgrading its customer service, corporate governance and CSR activities with an innovative and caring professional attitude.

Contribution to National Exchequer IBBL is the highest Corporate Taxpayer among the Local Banks and is the second highest Taxpayer in the Banking sector of Bangladesh. Up to 2013, it has contributed total Tk. 58,831.68 of which Tk.31,397.15 million as corporate tax, Tk.19,039.27 million as tax deducted at source, Tk.5,698.25 million as excise duty, Tk.2,347.76 million as VAT and Tk. 349.25 as income tax payment by the employees.

Awards & Accolades In recognition to its performance and good governance, IBBL has been awarded SAFA (South Asian Federation of Accountants) Corporate Governance Award (1st Position) - 2010, 2011 & 2012 and SAFA Award for best presented annual reports - 2012 (1st Position); ICAB award for SAARC Anniversary Award for Corporate Governance - 2012 (1st Position) and Best Presented Annual Reports - 2012 (1st Position). Many other awards including ICMAB Best Corporate Award for the year - 2007, 2008, 2010 & 2011, 2012 have also been received

by IBBL.

Conclusion IBBL, through accelerating its financial and non-financial performance, is poised to carry forward its mission through the next course of its journey and develop itself as a model for welfare banking around the globe.

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

IBBL performance: some indicators

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IBBL’s Five Year Performance at a glance Particulars 1

Paid up Capital Total Equity Capital Adequacy Ratio (%) Total Deposits Total Investments Import Business Export Business Remittance Net Profit before tax Provision for Income Tax Net Profit after Tax Cash Dividend Stock Total Assets No. of Foreign Correspondents Number of Employees Number of Branches Net Asset Value per Share (Tk.) Return on Equity (%) Cost Income Ratio Earnings per Share (Tk.) Price Earnings Ratio (Times) Investment to Deposit Ratio a. Long Term b. Short Term

2009

2010

2011

2012

(In million Taka) 2013

2 6,178 23,620 11.65% 244,292 225,752 161,230 106,424 194,716 6,518 3,253 3,404 10% 20% 340,638 919 9,588 231 27.12 16.93% 0.74 2.72 12.87 87.85%

3 7,413 28,400 11.06% 291,935 275,494 246,281 148,421 214,629 8,455 4,109 4,463 35% 443,685 919 10,349 251 23.48 19.00% 0.72 3.57 13.29 90.17%

4 10,008 33,717 13.09% 341,854 322,773 301,207 178,244 236,607 10,347 5,516 4,841 7% 25% 502,613 935 11,465 266 22.22 17.42% 0.73 3.87 11.27 89.47%

5 12,510 42,053 13.49% 417,844 399,931 284,588 197,095 300,915 12,096 6,572 5,524 8% 17% 592,581 676 12,188 276 27.18 13.90% 0.76 3.65 12.21 85.18%

AA+ ST-1

AA+ ST-1

AA+ ST-1

AA+ ST-1

6 14,636 45,512 14.26% 473,141 474,016 285,890 205,269 286,956 11,075 6,102 4,973 8% 10% 664,555 690 12980 286 29.92 11.36% 0.75 3.40 11.17 82.35% Credit Rating AA+ ST-1

PROFILES OF THE WINNING COMPANIES

CORPORATE DIRECTORY About Eastern Bank Limited (EBL) A public limited company incorporated on 08 August 1992 in Bangladesh with primary objective to carry out all kinds of banking businesses in and outside Bangladesh. Having taken over the businesses, assets, liabilities and losses of erstwhile Bank of Credit & Commerce International (Overseas) Limited as per BCCI Reconstruction Scheme 1992 of Bangladesh Bank, the Bank commenced Banking Operations on 16 August1992.

GROUP COMPOSITION EASTERN BANK LIMITED (GROUP) BANK

SUBSIDIARIES

Eastern Bank Limited

EBL Securities Limited (Stock Dealer & Brokerage) EBL Investments Limited (Merchant Banking Operations)

Off-Shore Banking Unit (A separate unit but not entity)

EBL Asset Management Limited (Asset management i.e. managing mutual funds) EBL Finance (HK) Limited (First foreign subsidiary formed to do trade finance and off-shore banking businesses in Hong Kong.)

Over the years EBL has established itself as a leading private commercial bank in the country with established leadership in Corporate Banking with growing focus on SME and Consumer businesses. EBL offers a wide range of depository, loan and card products to cater virtually for every customer segment. From Student Banking to Priority Banking to Visa Signature card, EBL has almost all banking products in its repertoire. The product basket is rich in content featuring different types of Savings and Current Accounts, Personal Loans, Debit Cards, Credit Cards, Pre-paid Cards, Internet Banking, Corporate Banking, SME Banking, Investment Banking, Treasury & Syndication services.

CREDIT RATING The Bank has completed its credit rating by Credit Rating Information and Services Limited (CRISL) based on the Financial Statements dated 31 December 2013 and was awarded ‘AA’ in the Long Term and ‘ST-2’ in the Short Term.

Rating by CRISL Rating Status

Long term

Short term

Surveillance Rating 2013

AA

ST-2

Surveillance Rating 2012

AA

ST-2

Outlook

AWARDS AND RECOGNITION • •

Stable

The most prestigious national award in SME sector ‘Best Structured SME Bank of the Year 2014’ given by Bangladesh Bank and SME Foundation.

Winner of the IFC Global Award for the Best Partner for Working Capital Systemic Solutions in 2013.

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OUR CORE BUSINESS

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PROFILES OF THE WINNING COMPANIES

• • • • • • • •

ICMAB Best Corporate Award 2013.

The Best Retail Bank in Bangladesh in the category of ‘Excellence in Retail Financial Services’ by ‘The Asian Banker’, a Singapore based financial magazine and research organization for two consecutive years 2013-2014.

EBL CEO awarded ‘CEO of The Year’ by World HRD Congress and World Brand Congress hosted by Asian Confederation of Businesses in Dubai in September 2012.

Crowned with Asia’s Best Employer Brand Awards 2012 in the category of ‘Best HR Strategy in line with business’ by World HR Congress and Employer Branding Institute in July 2012.

Adjudged the Best Financial Institution 2010 at the DHL-Daily Star Bangladesh Business Award, the most prestigious award in Bangladesh in June 2011.

Global awards for Brand Excellence in the category of “Best Banking and Financial Services” by the Global Brand Congress in November 2011.

EBL Human Resources wins “Asia’s Best Employer Brand Awards 2012” in the category of Best HR Strategy in Line with Business conferred by World HR Congress & Employer Branding Institute in July 2012.

Centralized (Corporate, Consumer, SME and Treasury) Operations of EBL have achieved Quality Management Systems Certificate as per ISO 9001:2008 standard in 2011. EBL is the first Bangladeshi Bank to achieve the recognitions for its commitment to quality service.

Eastern Bank Limited Financial Highlights Particulars

BDT Million 2013

2012

2011

2010

2009

Financial Performance Net Interest Income

4,892

4,814

3,314

2,973

2,317

Non Interest Income

4,578

3,913

4,478

3,487

2,313

Operating Income

9,469

8,727

7,793

6,461

4,630

Operating Profit

5,788

5,464

5,107

4,410

2,980

Profit after Tax (PAT)

2,568

2,275

2,521

2,425

1,455

102,910

96,720

81,774

58,607

47,668

25,904

21,655

16,910

9,827

8,806

117,102

91,781

75,536

56,425

49,190

18,450

17,109

14,407

12,084

8,429

157,882

147,148

117,581

82,098

69,871

Earmings per share (BDT)

4.20

3.72

5.57

5.36

5.00

Dividend (%)

20%

20%

35%

55%

37%

Price earning ratio (times)

6.93

8.52

11.82

24.16

12.89

Net asset value per share (BDT)

30.19

27.99

31.82

41.37

33.76

Market price per share (BDT)

29.10

31.70

65.80

129.40

64.43

11.95%

12.05%

10.77%

10.81%

11.34%

3.59%

3.17%

1.91%

1.99%

2.46%

Cost to income ratio

38.87%

37.39%

34.46%

32.10%

35.62%

Return on average equity (ROE)

14.44%

14.44%

19.03%

23.64%

22.10%

Return on average assets (ROA)

1.68%

1.72%

2.52%

3.19%

2.34%

YE Financial Position Loans and Advances Investments

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

Deposits

80

Shareholers equity Total Assets Share Metrices (Per Share)

Efficiency Ratios Capital adequacy ratio (CAR) NPL to total loans and advances

PROFILES OF THE WINNING COMPANIES

About the company Dutch-Bangla Bank Limited (DBBL) is a commercial bank set up as a joint venture between Bangladesh and The Netherlands. Incorporated as a public limited company under the Companies Act 1994, the Bank obtained licence from Bangladesh Bank on 23 July 1995 and started its banking business on 3 June 1996. The number of branches of the Bank at the end of 2013 stood at 136. The Bank also started off-shore banking in 2010. In the first half of 2011, the Bank introduced Mobile Banking Services for the first time in Bangladesh to bring huge number of unbanked population of the country particularly in rural / remote areas into banking channel.

In the mean time, 302 Upazilas of 64 Districts has brought under the purview of DBBL Mobile Banking Services.

DBBL is market leader in retail customer base deposit accounts. It has now 3.4 million deposit accounts, more than any other private banks in the country. The number of ATM Units and Fast Track of the Bank as on 31 December 2013 was 2,454 and 263 respectively all over Bangladesh. The Bank is listed with Dhaka Stock Exchange and Chittagong Stock Exchange as a publicly quoted company.

DBBL’s state-of-the-art IT platform and online banking system provide the largest ATM network and POS services of the country through which customers are getting any-branch and anytime banking for 24 hours a day and 364 days a year. Moreover, DBBL Mobile Banking account holders are enjoying the facility of withdrawing cash from ATM booths without an ATM card. IT network also provides SMS banking, alert banking and internet banking services. Debit cards of MasterCard Worldwide, debit and credit cards of VISA International and DBBL’s proprietary cards are in operation. In addition, international cards (VISA & MasterCard) of different local & international banks are accepted at DBBL’s ATMs for withdrawal of money and at POS terminals for payments of shopping, hotel and dining bills etc. DBBL introduced EMV based computer Chip Cards for the first time in Bangladesh in 2009. The EMV feature shields DBBL customers from any kind of frauds as per the guidelines provided by Master Card & VISA.

Vision Dutch-Bangla Bank dreams of a better Bangladesh, where arts and letters, sports and athletics, music and entertainment, science and education, health and hygiene, clean and pollution free environment and above all a society based on morality and ethics make all our lives worth living. DBBL’s essence and ethos rest on a cosmos of creativity and the marvel-magic of a charmed life that abounds with spirit of life and adventures that contributes towards human development.

Mission Dutch-Bangla Bank engineers enterprise and creativity in business and industry with a commitment to social cause. “Profits alone” do not hold a central focus in the Bank’s operation; because “man does not live by bread and butter alone”.

Core objectives Dutch-Bangla Bank believes in its uncompromising commitment to fulfill its customer needs and satisfaction and to become their first choice in banking. Taking cue from its pool of esteemed clientele, Dutch-Bangla Bank intends to pave the way for a new era in banking that upholds and epitomizes its vaunted marques “YOUR TRUSTED PARTNER.”

Activities / products & services Dutch-Bangla Bank limited continued to be customer focused and solution-driven Bank. The products and services of the Bank are as follows:

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

Since inception, as a responsible corporate body, DBBL has been playing a pioneering role in implementing social and philanthropic programs to help disadvantaged people of the society. A number of sectors are on the priority list of the Bank. Education, health care, rehabilitation of the distressed people and such other programs to redress human sufferings and to improve quality of life are some of the important areas where the Bank carries out its social and philanthropic activities. The Bank is the pioneer and market leader in activities dedicated to Social Cause. It has so far spent more than Taka 331 crore in Social Cause programs. In addition to other Social Cause programs, it has now taken the largest scholarship program of the country in which Taka 102 crore will be spent in every year to give scholarship to 30,000 students by the year 2016.

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PROFILES OF THE WINNING COMPANIES

Asset Products 1.

Secured overdraft 2.

Loan against trust receipt 3.

Transport loan 4.

Real estate loan (Residential & Commercial) 5.

Loan against accepted bill 6.

Industrial term loan 7.

Agricultural term loan 8.

Export cash credit 9.

FMO local currency loan for SME 10. FMO foreign currency loan 11. Cash credit 12. Payment against document (Cash and EDF) 13. SME loan ( a complete series of credit facilities) 14. Retail loan ( a complete series of personal credit facilities including Health Line, Education Line, Professional line, marriage Line, Travel Line Festival Line, Dreams Come True Line, Care Line, General Line, Auto Line, Home Line etc.

Liability Products (1) Saving deposit Account (2) Power Account (3) School Savers Account (4) Current deposit Account (5) Special notice deposit (Short term deposit) (6) Term deposit (7) Resident foreign currency deposit (8) Foreign currency deposit (9) Convertible Taka Account (10) Non-Convertible Taka Account (11) Monthly term Deposit (12) Deposit Pension Scheme (DPS) (13) Periodic Benefit Scheme (14) Children Education Savings Scheme (15) Millionaire Deposit Scheme (MDS)

IT related Products & Services (1) ATM (2) POS services (3) Debit card (EMV Chip Supported) (4) Credit card (EMV Chip Supported) (5) SMS banking (6) Alert banking (7) Internet banking (8) Fast Track (9) E-commerce (10) Mobile banking

Mobile Banking Products & Services 1) 2) 3) 4) 5) 6) 7) 8) 9) 10)

Customer Registration Cash-in (Cash Deposit) Cash-Out - Cash Withdrawal from i. Agent Point ii. ATM Foreign Remittance Salary/Allowance Disbursement Balance Inquiry Statement Inquiry Balance transfer from/to Bank account through Mobile P2P Service through Mobile Air Time TOP-up through Mobile

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Five (5) Years Financial Highlights

82

Particulars Balance sheet (As of 31 December) Authorized capital Paid-up share capital Share premium Reserve fund Retained earnings Shareholders’ equity Regulatory capital Deposits Loans and advances Total assets Import Export Income statement (For the year) Profit before provisions Profit before tax Profit after tax Ratios & statistics: Return on assets (%) Return on equity (%) Capital adequacy ratio (%) Loan deposit ratio (%) Dividend per share Cash (Taka) Bonus (%) Closing market price per share (Taka) Earning per share (Taka) Price earnings (P/E) ratio (Times) Number of shareholders Number of employees Number of branches Number of ATM Booths Number of Fast Track Number of deposit account holders Number of mobile account holders

2009

In million Taka 2013

2010

2011

2012

4,000.0 1,500.0 11.1 2,000.0 12.6 4,351.8 5,899.8 67,788.5 48,411.0 81,788.4 53,088.7 41,162.5

4,000.0 2,000.0 11.1 2,748.4 957.0 7,001.0 9,125.9 83,244.8 67,657.7 101,181.6 87,662.6 73,499.5

4,000.0 2,000.0 11.1 3,657.7 1,738.4 8,939.6 10,534.9 100,711.0 79,660.7 123,267.0 83,434.4 92,412.4

4,000.0 2,000.0 11.1 4,621.0 2,625.0 10,854.4 12,284.0 125,433.1 91,648.9 155,918.6 104,306.1 108,878.6

4,000.0 2,000.0 11.1 5,330.4 3,452.2 12,641.7 15,403.4 145,230.1 106,422.8 185,537.4 108,259.3 118,045.2

2,695.7 2,154.9 1,137.7

4,198.5 3,739.1 2,002.3

4,779.9 4,547.7 2,154.9

5,205.6 4,817.1 2,314.1

4,583.6 3,547.0 2,000.8

1.6 30.3 11.6 71.4

2.2 35.3 9.6 81.3

1.9 27.0 11.2 79.1

1.7 23.4 12.0 73.1

1.2 17.0 13.7 73.3

33.3 195.8 5.7 34.4 7,508 1,785 79 700 761,120 -

3.0 229.3 10.0 22.9 8,409 2,794 96 1,100 50 1,352,870 -

4.0 161.3 10.8 15.0 7,457 4,015 111 1,940 153 2,026,189 42,985

4.0 114.3 11.6 9.9 6,637 5,268 126 2,366 235 2,755,149 804,991

4.0 104.7 10.0 10.5 6,611 4,666 136 2,454 263 3,405,671 1,162,147

(i) The Face Value per share has been changed from Taka 100 each to Taka 10 each w.e.f. 4 December 2011 as per SEC directive. Previous years’ information has also been restated for uniform presentation and comparison. (ii) Dividend Taka 4 per share for Taka 10 each for the year ended 31 December 2013 was for the General Public Shareholders and Foreign Sponsors / Shareholders. The local sponsors of the Bank did not receive any dividend.

PROFILES OF THE WINNING COMPANIES

BACKGROUND IDLC Finance Limited was incorporated in Dhaka as Bangladesh’s pioneering leasing company in 1985. The Company was constituted through the collaboration of International Finance Corporation (IFC), German Investment and Development Company (DEG), Kookmin Bank, Korea Development Financing Corporation, The Aga Khan Fund for Economic Development, The City Bank Limited, IPDC of Bangladesh Limited and SadharanBima Corporation. Over the years, the shareholding structure has evolved into IDLC emerging as a 100 percent locally-owned enterprise.

Today, IDLC is a pioneering multi-product NBFI in Bangladesh with 29 branches and 2 booths, and over 1,200 staff. The Company offers a wide range of products and solutions comprising loans, deposit and capital market products and services to Corporate, Consumer and SME clients.

IDLC also operates two wholly-owned subsidiaries in the capital markets through IDLC Investments Limited (providing Merchant Banking services) and IDLC Securities Limited (providing Brokerage services).

The IDLC Group has always been a standard bearer for the financial sector in terms of corporate governance and statutory compliance. The Group is also highly regarded for its professional pool of resources and progressive work environment. In 2010, the IDLC Group committed to sustainable business by becoming a member of the Bangladesh CSR Centre, the United Nations Global Compact (UNGC), and finally, the United Nations Environment Programme Finance Initiative (UNEP FI).

The IDLC brand stands for trust, transparency and customer-centricity. Our tagline of ‘financing happiness’ resonates with our entrenched philosophy of touchingthe lives of our stakeholders in a positive and constructive manner, thus creating afavourable brand recall.

Incorporation of the Company

: May 23, 1985

Commencement of leasing business

: February 22, 1986

Listed with the Dhaka Stock Exchange Limited

: March 20, 1993

Licensed as a Non-Banking Financial Institutionunder the Financial Institutions Act, 1993

: February 7, 1995

Listed with the Chittagong Stock Exchange Limited

: November 25, 1996

Licensed as Merchant Banker by the Securities and Exchange Commission : January 22, 1998 Commencement of Corporate Finance and Merchant Banking operations

: January 15, 1999

Commencement of operation of IDLC Securities Limited; a wholly-owned subsidiary of IDLC

: September 18, 2006

Company name changed to ‘IDLC Finance Limited’ from Industrial Development LeasingCompany of Bangladesh Limited

: August 5, 2007

Commencement of operation of IDLC Investments Limited; a wholly-owned subsidiary of IDLC

: August 16, 2011

Rebranding initiative undertaken for IDLC

: March 11, 2012

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

KEY MILESTONES

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PROFILES OF THE WINNING COMPANIES

FINANCIAL HIGHLIGHTS FOR 5 YEARS Particulars 2009 2010 2011 Financial Performance Lease and Term loans disbursed 3,750 4,345 8,517 Housing finance disbursement 1,839 2,121 2,586 Short term finance portfolio 317 468 821 Lease Finance 4,383 4,107 4,547 Real estate finance assets 4,789 5,605 6,979 Total assets 21,565 25,353 29,519 Long term liabilities 18,792 21,746 25,299 Term deposit balance 9,780 12,373 16,828 Net current assets 3,645 4,172 3,676 Operational Performance Operational income 1,497 2,186 2,043 Operational expenses 440 673 672 Financial expenses 1,619 1,818 2,359 Profit before tax 1,273 1,394 913 Net profit after tax 469 806 804 Average effective tax rate (%) 48.66 42.20 41.57 Financial Ratios Debt equity ratio (Times) 10.65 8.65 8.16 Financial expenses coverage ratio (Times) 1.79 1.77 1.39 Current ratio (Times) 1.04:1 1.39:1 1.31:1 Return on total assets (%) 2.44 3.43 2.93 Non-performing loan ratio (%) 3.43 2.84 2.32 Return on shareholders’ equity (%) 28.65 35.99 27.51 Earnings per share* 2.91 5.01 5.00 * Prior years’ number of shares have been adjusted to reflect bonus share issued in 2012.

2012

(Taka in million) Growth

2013

12,304 2,736 581 5,479 8,262 35,748 30,987 22,008 2,797

16,895 4,421 604 6,358 11,170 48,535 42,884 29,164 2,682

37.32% 61.61% 3.84% 16.04% 35.19% 35.77% 38.40% 32.51% -4.10%

1,955 822 3,088 1,033 589 42.94

2,574 1,022 4,127 1,406 811 42.32

31.64% 24.36% 33.67% 36.18% 37.65% -0.62

8.38 1.33 1.21:1 1.81 2.09 16.76 3.66

9.50 1.34 1.14:1 1.92 1.63 19.24 5.04

13.36% 0.47% -5.78% 0.12 -0.46 2.48 37.65%

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

IDLC GROUP

84

Particulars Financial Performance Total assets Long term liabilities Term deposit balance Operational Performance Operational income Operational expenses Financial expenses Profit before tax Net profit after tax Average effective tax rate Financial Ratios Debt equity ratio (Times) Financial expenses coverage ratio (Times) Return on total assets (%) Non-performing loan ratio (%) Return on shareholders’ equity (%) Earnings per share* Dividend per share Dividend yield (%) Dividend payout ratio (%) Equity Statistics Number of shares ( in million) Year-end market price per share (Taka) Net asset value per share (Taka) Market capitalization Market value addition Shareholders’ equity

2009

2010

2011

2012

2013

(Taka in million) Growth

22,681 18,792 9,780

26,930 21,745 12,373

31,165 25,299 16,828

37,784 32,492 22,008

50,429 43,951 29,064

33.47% 35.27% 32.06%

1,913 490 1,687 1,273 822 35.46

3,047 966 1,822 1,956 1,327 32.16

2,160 913 2,364 1,217 500 58.88

2,403 1,058 3,103 1,252 713 43.07

2,763 1,244 4,138 1,325 669 49.48

14.95% 17.61% 33.35% 5.83% -6.08% 14.88%

8.48 1.75 4.11 3.43 41.05 5.11 11.00 2.97 40.14

6.30 2.07 5.35 2.84 43.64 8.25 10.00 2.15 45.21

6.83 1.51 1.72 2.32 13.04 3.11 2.50 1.81 49.47

7.05 1.40 2.07 2.09 16.44 4.43 3.00 3.26 52.08

8.40 1.32 1.52 1.63 13.31 4.16 3.00 4.77 72.09

19.19% -5.93% (0.55) (0.46) (3.12) -6.08% 1.51 20.01

3,000 3,703 14.88 11,109 346.13 2,393

6,000 4,648 22.94 27,888 427.53 3,690

99,000 138.50 24.74 13,712 98.29 3,980

123,750 91.90 29.17 11,373 44.49 4,693

160,875 62.90 33.33 10,119 29.57 5,363

30.00% -31.56% 14.26% -11.02% -33.55% 14.26%

* Prior years’ number of shares have been adjusted to reflect bonus share issued in 2012.

PROFILES OF THE WINNING COMPANIES

Corporate History Prime Finance & Investment Limited is one of the leading Non-Banking Financial Institutions, engaged in financing activities which was incorporated in the year 1996 as a Public Limited Company under the Companies Act 1994 and licensed by Bangladesh Bank under the Financial Institutions Act 1993. Prime Finance also obtained license from the Securities and Exchange Commission (SEC) to operate in the capital market and proved itself as a development partner of the capital market of the country. The company is engaged in providing diversified financial services and operated by a team of professionals for achieving its greater strategic goals with emphasis more on corporate clients. Among other services, Prime Finance also provide margin loan and other fee based services like, public issue of shares, underwriting of shares, portfolio management, merger & amalgamation, corporate financial services etc. through its subsidiary company. The spirit and corporate philosophy of Prime Finance is reflected in its diversified product and service mix. Shares of Prime Finance are traded on the DSE and CSE under the symbol of ‘PRIMEFIN’.

Prime Finance has geographically diversified its operations by opening branch offices at Gulshan, Uttara, Chittagong, and Rajshahi.

Prime Finance & Investment Limited is proud of its effort to make the Company one of the best run financial institutions in the country. It is a testament to our standards of governance, compliance and transparency that we won a number of prestigious awards over the years. Some of the notable awards achieved areconsecutive first position in ICAB – BPA award from 2005 to 2009 and 2011, overall winner in 2010 in SAFA, best corporate governance award in 2011 in SAARC, and ICMAB best corporate performance award in 2010 etc.

Vision We aspire to be a market leader in providing integrated financial solutions with special focus on creating value: For our clients - Working closely with our clients; For our shareholders - Maximizing shareholders’ wealth achieving superior performance; For our employees - Providing a workplace in which employees are rewarded and respected properly; For our communities - Supporting community initiatives in health, education, arts and economic & social development.

Our Mission is to: • Grow profitably through partnership with our clients, delivering innovative solutions to cater their financial needs; • Create shareholders value through client satisfaction and employee commitment to excellence; • Enhance the ability of our employees giving every opportunity to have access to adven turous experience through which they can raise their self-esteem, realize their full potential and achieve more than they ever thought possible; • Serving our communities with integrity and pride.

Goal Our goal is to be an undisputed leader in financial services creating long-term shareholders’ value aiming to achieve these by: • Building quality investment portfolio; • Focusing on minimizing default loans within the portfolio; • Developing and maintaining dependable and long-term relationships with our clients; • Sustaining solid growth without compromising profitability; • Achieving higher return on equity; • Maintaining strong relationships with a wide variety of partners; • Responding quickly to new opportunities; • Assessing and managing business risk prudently.

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

Mission

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PROFILES OF THE WINNING COMPANIES

Products & Services Fund Based         

Lease finance Term finance SME finance Factoring Real estate finance Hire purchase Car Finance Bridge/equity finance Syndicated finance

Deposit Schemes

Fee Based Public issues of shares Underwriting of shares Portfolio management Merger & amalgamation  Corporate financial services

   

        

Deposit Schemes

Semian nual deposit Annual income deposit Monthly income deposit Cumulative income deposit Quarterly income deposit Half yearly income deposit Double income deposit Triple income deposit Fortune DPS

     

Housing Deposit Scheme Earned Ahead Prime Priority FD Account Prime Contribution FDR Prime Doctor’s FD Prime Professional FD etc.

Subsidiary •

Prime Finance Capital Management Limited- a 60% owned public limited company, engaged in issue management, portfolio management, underwriting of shares and securities and advisory services, has been started its operation since 01 January 2011.

Associates •

PFI Securities Limited- a 46.15% owned public limited company engaged in stock brokerage, investment in securities, margin loan facility to the clients etc.

Prime Finance Asset Management Company Limited- a 49% percent owned associateworking as a manager of mutual funds of other companies, the assets of any Trust or Fund etc.

Prime Prudential Fund Limited- a 40% owned associate the objective of which is to invest in securities, debentures, bonds etc of both listed and non-listed company and to sponsor, manage and/or launch Mutual Funds etc.

• •

Performance Highlights

86

3,893.58

5,106.59 12

4,684.40

5,249.84 13

3,760.31

4,315.61

5,614.80

6,770.96

11,621.04

12,827.06

13,836.13

16,099.59

772.81 13

300.19

370.68

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

1,731.66

(Figures in million except per share data)

12

11

Net profit

10

13

12

11

Total investments

10

13

12

11

Total deposits

10

11

Shareholders' equity

10

PROFILES OF THE WINNING COMPANIES

INTRODUCTION Established in 1998, Union Capital Limited (UCL) Financial Group is a diversified financial service provider based in Dhaka. UCL has operations in both the principal segments of financial market: capital market and financing & investment activities. Together with its principal subsidiaries, UniCap Securities Limited and UniCap Investments Limited, UCL Group offers a wide range of complementary investment products like term/lease finance, SME finance, real estate finance, equity finance, etc. brokerage services, issue management, underwriting, portfolio management and corporate advisory services. UCL has 5 offices located in Dhaka, Chittagong and Sylhet. UCL is a publicly traded Company listed in both the Dhaka and Chittagong Stock Exchange.

GROUP PROFILE UCL and its subsidiaries constitute one of the largest financial groups, which began its activities 16 years back. UCL’s predecessor, Peregrine Capital Limited was established in 1998 based in Hong Kong.

UCL is providing a variety of financial and non-financial activities in Bangladesh. UCL’s policy is to provide its customers with comprehensive financial solutions, high level professional services and a wide variety of products adapted to each customer’s need.

To implement its strategy, UCL operates through different business lines, with each business line providing financial services to a particular customer segment: Corporate Financial Services including lease finance and term finance to SMEs and large enterprise of different sectors, Capital Market Services including issue management, share trading and portfolio management through its subsidiaries and Retail Customer Services including deposit schemes and personal lending.

The Group Provides ● Different deposit schemes ● Investors portfolio management ● Corporate advisory services ● Share trading for retail and corporate investors

● Leasing, term and SME finance ● IPO and rights issue management ● Margin loan for investment in securities

Business Clusters ● Union Capital Limited ● UniCap Securities Limited ● UniCap Investments Limited ● Building strong investment portfolio ● Acknowledged for its sustainability leadership ● Access to major areas of investment services

Location ● Registered office in Dhaka ● Major operating centers in Dhaka ● Branch network in Dhaka, Chittagong and Sylhet BOARD OF DIRECTORS The Board of Directors comprises the following twelve members including three Independent Directors as at 30 June 2014: ● Chowdhury Tanzim Karim, Chairman ● Capt. Minhazur Reza Chowdhury ● M. Faizur Rahman ● Meherunnesa Haque ● Nasir A. Chowdhury ● Kazi Russel Mahbub ● Nadeem A. Chowdhury ● N. H. Khan, Independent Director ● Tajrina Sikder ● Ziaul Hasan Siddiqui, Independent Director ● Kazi Golam Samiur Rahman ● Mohammad Nurun Nabi FCA, Independent Director MANAGING DIRECTOR & CEO Md. Akter Hossain Sannamat FCA, FCS SENIOR MANAGEMENT ● ● ● ● ●

Abul Munim Khan, EVP & Head of Business Tauhidul Ashraf FCS, SVP & Company Secretary Abdul Bareque, SVP & Head of CRM Engr. A.N.M Golam Shabbir, VP & Head of ICT Fazle Karim Murad, VP (Corporate Finance)

● ● ● ●

Md. Forhad Hossain ACA, AVP & CFO (CC) Engr. Israil Hossain, AVP Capital Market Operations Raihan Uddin Ahammad ACA, AVP & Head of ICC Md. Shohidul Islam, AVP & Head of SME

OUR CORE VALUES Seven core values drive UCL employees and management in delivering results to our shareholders, clients and the community that we operate in. Pursuing and living up to these values is a responsibility we take great pride in. Our seven core values as under:

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

Focus ● Local market ● UCL as an employer of choice ● Positioned as the institution for all

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PROFILES OF THE WINNING COMPANIES

Integrity Trust Teamwork Openness Transparency Excellence Resilience

We We We We We We We

are honest in our business activities makes sure that the integrity remains the top priority. work diligently to build a deeper level of trust inside out of the organization. work as a team to achieve UCL’s vision, mission and goal. are always open and fair in what we say and do. are always transparent regarding our performance to existing and potential stakeholders. aspire to achieve excellence in all that we do. always take challenges positively and see difficulties as the opportunities todemonstrate our ability.

STATEMENT ON CORPORATE GOVERNANCE How we govern ourselves as a group is as important as anything we do. Being an ethical Company is about much more than simply adhering to the letter of the law. But it’s an important step. We aim to achieve and maintain the highest standards of business integrity, ethics and professionalism across all of our activities.

We strive to earn and retain the trust of our shareholders through our high standards of corporate governance. We have strong oversight and regulations in place. We work to embed those practices in our culture.

FINANCIAL PERFORMANCE The year 2013 for Bangladesh was unfortunately marked by significant political unrest including strikes and blockades, which left an adverse impact on credit growth coupled with an alarming increase in non-performing loan.

Despite all odds and evens, UCL group made a remarkable growth to its investment and profitability.

A financial summary of last 5 years are as under Particulars Operating Performance Operating revenue Operating profit Profit before tax Net profit after tax Earnings per share (EPS) Statement of Financial Position Total assets Net current assets Total liabilities Shareholders’ fund

Fig. in million Taka except EPS 2010 2009

2013

2012

2011

1,663.80 606.33 208.59 141.76 1.29

1,148.00 311.88 108.69 56.72 0.54

1,208.52 596.51 388.97 178.28 1.70

1,720.38 1,232.55 938.78 570.85 10.50

891.53 467.82 279.46 163.16 3.90

13,905.59 812.56 11,894.92 2,010.67

10,495.34 409.74 8,626.44 1,868.91

9,892.53 526.95 7,985.19 1,907.34

8,373.22 837.92 6,644.15 1,729.06

6,090.26 439.87 5,437.54 652.72

CREDIT RATING UCL has been rated as AA in the long run and ST-1 for the short term by National Credit Rating Company Limited which reflects very strong capacity for timely serving of financial obligations offering high safety. Such institutions carry very low risk. ST-1 reflects strong capacity for timely payment of financial commitments and carries lowest credit risk.

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

CORPORATE CULTURE UCL’s corporate culture centers on the common interests of the Company and its customers by seeking to establish strong and long-term relationships between the two. Sustainability, in the context of human resources, encouraging our employees to think about the longer term rather than just focusing on immediate goals. This applies in all contexts, from succession planning and talent management to the way we work with employee and community outside the Company.

88

HUMAN RESOURCE One of the UCL’s principal strengths is the quality and dedication of its employees and their shared sense of being part of a team. Their diverse vantage points and unique abilities create a broad range of skills and knowledge that underpin our work. In order for UCL to continue its steady growth, it is essential that it retains key employees and provides an attractive opportunity for new personnel.

UCL offers a congenial working environment where everyone feels valued and respected. We are committed to the principle of equal opportunities and we ensure that job applicants and employees do not face discrimination on the grounds of gender, marital status, race, ethnic origin, religious belief or age. Our priorities are as under: ● Foster a culture of employee engagement ● Provide competitive compensation and rewards ● Enable growth through training and development ● Respect diversity and promote inclusion CORPORATE SOCIAL RESPONSIBILITY UCL is committed to doing better for customers, investors, employees and communities through a focused approach to corporate responsibility and sustainability. UCL’s goal is to demonstrate integrity in business practices and provide leadership in the workplace and the marketplace. We are committed to be a strong partner of the communities in which the Company operates its business and to transparency in sustainability reporting practices.

CONTRIBUTION TO NATIONAL ECONOMY UCL is one of the major employers, taxpayer and financial services provider amongst the non-banking financial institutions. Our role in the economy is extensive. Our everyday business activities touch the financial lives of millions of people and businesses. Our priorities are as under: ● ● ● ●

Provide strong return to shareholders Purchase goods and services responsibly Support small businesses and community Economic development

● Pay fair share of taxes ● Foster innovation and entrepreneurship ● Create employment

PROFILES OF THE WINNING COMPANIES

AT A GLANCE LankaBangla Finance Limited started its journey long back in 1997 as a joint-venture financial institution with multinational collaboration having license from Bangladesh Bank under Financial Institution Act-1993. Now LankaBangla is the country’s leading provider of integrated financial services including corporate financial services, personal financial services, SME financial services, stock broking, corporate advisory and wealth management services.

Under the broadest umbrella of products and service offerings, we are the lone financial institution to operate credit card (MasterCard and VISA) and also provide third party card processing services to different banks in Bangladesh. LankaBangla is a primary dealer of government securities since November 2009. The company got listed in both of the bourses of country i.e. DSE & CSE in 2006.

LankaBangla is the market leader in the capital market services and giving all out effort to develop an efficient, vibrant and transparent capital market in Bangladesh. Through our subsidiary, LankaBangla Securities Limited we are providing top notch broking services and leading the industry with cutting edge trading, top rated research and customer service. Another subsidiary, LankaBangla Investments Limited is a premier investment bank in the country providing corporate advisory, issue management and portfolio management services. The other subsidiary, LankaBangla Asset Management Company Limited is providing professional wealth management services.

We are the recipient of National Award for Best Published Accounts and Reports for the past six years declared by the Institute of Chartered Accountants of Bangladesh (ICAB) and also received SAFA award for the last four years which represent the quality we maintain in disclosure of information.

LankaBangla practices participatory management and adheres to industry best practices in all endeavors. Increasing stakeholders’ value is a natural driving force for the people at LankaBangla.

Our long standing sustainability efforts are creating environmental and social value while we step ahead. By embracing high ethical standards, governance and transparency, we dream to grow big.

Our ethos is simple - we envision our success being the growth partner of our enterprising clients.

We are committed to change the lives of the ordinary.

In quest of sustainable business, LankaBangla Finance Limited is positioning itself to provide enduring value to our people, customers, shareholders, and the community. Our strategic priorities remain to diversify portfolio with key focus on core product portfolio, manage balance sheet prudently, simplify processes to reduce cost, create a sustainable brand, nurture our human resources to deliver the best and uphold the livelihood of our community. We believe that clustering strategic priorities in this manner will enable flawless execution of the medium term strategic plan.

Going forward, Personal and SME financial services would be our prime focus in the leading portfolio. Recognizing SME segment’s value addition and employment generation capabilities, we are keen to finance various initiatives especially start-up enterprises as well as ones looking to

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

We recently have gone through a business process reengineering to build capacity to offer our clients superior experience than any time ever. The company now operates in centralized administrative framework through cutting edge technological environment. LankaBangla is serving with wide operational periphery covering major business hubs of the country.

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PROFILES OF THE WINNING COMPANIES

scale up. We are planning to expand our business horizon in major cities/ township of the country.

While we engage in doing business, we will be maintaining strict compliance and good governance in norms and regulations to ensure long term sustainability of the company. We will be engaging more on social ventures and community development. Putting priority in ecological balance of the environment, we plan to grow together with our stakeholders.

PRODUCTS & SERVICES WE OFFER AT LANKABANGLA Corporate Financial Service •

Lease Finance

• •

•

Auto loan

Term Finance

•

Home loan

Working Capital Finance

•

Mortgage loan

•

Bridge Finance

•

Short Term Secured Loan

•

Club Finance

•

Credit Card

•

Project & Structured Finance

•

Personal Loan

•

Factoring and

•

Distributor Finance

•

Bill discounting

•

Corporate liability

Reverse Factoring

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

Liability Management • Periodic Return Term Deposit

90

Personal Financial Services

SME Financial Services • Small Enterprise Finance •

Medium Enterprise Finance

•

Woman Entrepreneur Finance

•

JICA- SME Finance

•

Cumulative Term Deposit

Merchant Banking Operation (Through

•

Double Money

Subsidiary LankaBangla Investment Limited)

•

Triple Money

•

Margin Loan

•

Earn First

•

Issue Management

•

Agroj (Sr. Citizen)

•

Underwriting

• •

Shohoj Sanchoy Money Builders

• •

Advisory Service Investors Portfolio Service

Stock Brokerage Services (Through

Wealth Management Services (Through

Subsidiary LankaBangla Securities Limited)

Subsidiary LankaBangla Asset Management Company Limited)

•

Stock Brokerage

•

Closed -end Mutual Fund

•

Trading Facility through NITA

•

Unit Fund

•

CDBL Services

•

Discretionary Portfolio Management

•

Internet Trading

•

Islamic Shariah based Products

•

Research Services

•

Provident Fund, Pension Fund, and Gratuity Fund Management

PROFILES OF THE WINNING COMPANIES

BSRM Group of Companies is one of the largest steel manufacturing industries in Bangladesh. BSRM saga started in 1952, the year marked for our great Language Movement, in the then East Bengal when the two intrepid businessmen Mr. TaheraliAfricawala and Mr. AkberaliAfricawala ventured to put up the first steel rolling mill of the country at Nasirabad, Chittagong. Their dynamic and visionary efforts led it to one of the most sustainable industrial and corporate organization in Bangladesh achieving widespread success by ensuring quality products and customer satisfaction.

BSRM is now the “third-generation” industrial conglomerate of the country playing the role of the leader in steel sector.

Initially the group had installed four manual re-rolling mills. In 1985, to cater the growing demand fully automatic mill was commissioned having rolling capacity of 60,000 M. Ton per annum. Then in 1987 we had introduced ASTM-615 Grade 60 reinforced steel bars.

Subsequently, in 1996 we have commissioned the largest billet making plant in the country.

The largest ever fully automated steel re-rolling mills of the Group-BSRM Steels Limited has started its commercial production in 2008. Its product “Xtreme-500W” has earned commendable reputation for itsunparalleled quality and compliance with the international standards. To meet huge demands for “Xtreme 500W”, now we have undertaken a BMRE project to increase its capacity to 7,00,000 MT per annum.Mr. Alihussain Akberali FCA,is holding the position of the Chairman of the Company and Mr. Aameir Alihussain is working as the Managing Director of the company. BSRM Steels Limited was listed with both the bourses in Bangladesh in 2009.

BSRM Group of Companies is relentlesslyworking for compounding its contribution in the overall infrastructural development of the country with improved and high quality products culminated by best services at the most reasonable price.

We, BSRM awarded “No.1 Reinforced Steel (Rod) Brand 2014” by Bangladesh Brand Forum in collaboration with world leading brand research Company, Millward Brown. This is the consecutive 3rd time BSRM won the No. 1 brand award in rod category.

BSRM Group is always keen to reconcile corporate growth with the community uplift. We have taken a number of social outreach programs in education, health care, livelihood creation, sports, cultural arena, etc. We believe that welfare and business growth should work together. We have undertaken some initiatives for easing traffic congestion and for city beautification as well as to uphold our heritage and culture. Each year we have undertaken programs like blanket distribution, tree plantation, assisting educational institutions, etc. We are also operating a School for poor children. We have also undertaken several programs with some local NGOs for livelihood support for the landless destitute people and repressed women.

BSRM Group of Companies always believes in sustainable growth, quality, reliability, trust and leadership, social responsibility and customer satisfaction.

We always adopt the best, ethical and transparent business practices to fulfill our obligations towards the society and offer our best services to our customers and treat them with respect and honor and to serve our beloved nation.

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

BSRM Group of Companies has also undertaken a project to set up world’s largest induction furnace based billet casting plant having 862,000 MT capacitiesper annum under the name of “BSRM Steel Mills Limited”. It will cost approximately Tk.14,000 Million. This plant will produce billets for internal consumption of the concerns of BSRM Group including BSRM Steels Limited. This new plant will help the Group to supply MS Rod in the market at a competitive price. BSRM Steel Mills Limited is expected to start its commercial production by April/ May2015.

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PROFILES OF THE WINNING COMPANIES

Singer has been operating in this region (now Bangladesh) since 1905, when the first Singer sewing machines went on sale at Chittagong and Dhaka stores and at that time the country was a part of the Indian sub continent.

After the partition of the Indian Sub Continent in 1947, Singer in East Pakistan operated as a branch of Singer Pakistan and the products used to come from West Pakistan.

At the initial stage marketing operation was carried out through only 10 shops, which increased to 43 by the late 1960s.

In December 16, 1971 Bangladesh emerged as a sovereign state. As a result the East Pakistan Branch Office was elevated to a Country Office and the sewing machines were made available from different Singer overseas sources.

Singer Bangladesh Limited was incorporated as a private limited company on 4 September 1979 under Companies Act 1913. It was converted into a public limited company in 1983 when it offered its shares to the public with the requisite permission from the Government.

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

Since its inception in Bangladesh, the name Singer has been synonymous with the sewing machine. Although Singer Corporation started diversification of its product range in early sixties, Singer Bangladesh Limited was a company with a single product - sewing machine till 1985. A single product sewing machine company began into a multi-product consumer durable company in 1985.

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Today, Singer Bangladesh Limited is a large, diversified company with unmatched presence throughout Bangladesh.

Beginning with the sewing machine, Singer's product portfolio has diversified to encompass a highly successful multi-brand strategy combining products of top world marques with the Company's own products across a range of electrical home appliances.

BOARD OF DIRECTORS

Mahbub Jamil

A.M. Hamim Rahmatullah

Akhtar Imam

Gavin J. Walker

Gelmart Gellecanao

Mohammad Sanaullah

Akram Uddin Ahmed

C. K. Hyder

Mokbul Ahmed

Hire Purchase scheme is one of the cardinal factors for the success of the Company. This scheme is innovative and appropriate for Bangladesh considering the socio-economic conditions of the country.

Singer Bangladesh Limited remains a member of the Worldwide Singer family. Singer Bhold B.V. is the majority shareholder in the company, holding a stake of 75%. The public shareholding accounts for 25%. Singer Bangladesh Limited was listed with the Dhaka Stock exchange in 1983 and Chittagong Stock Exchange in 2001.

PROFILES OF THE WINNING COMPANIES

GlaxoSmithKline (GSK) is a science-led global healthcare company that researches and develops a broad range of innovative medicines, vaccines and consumer healthcare products. Our products are used by millions of people around the world, helping them to do more, feel better and live longer. With Headquarters in UK, GSK has a wide geographical reach which include 115 countries, manufacturing network in 87 sites and more than 100,000 people working globally. We have three primary areas of business in pharmaceuticals, vaccines and consumer healthcare. As a research based company we believe in creating innovative new products and making these accessible to as many people who need them.

As a part of the centuries old company, GSK Bangladesh a subsidiary of GSK plc started its operation in Bangladesh , the then East Pakistan in 1949. GSK Bangladesh’s activities include secondary manufacture of pharmaceutical products and marketing of vaccines, pharmaceutical healthcare products, nutrition and oral healthcare products. Our activities in all three business areas are strictly guided by “GSK values” which include showing respect for people, being patient/customer focused and commitment to transparency and demonstration of highest integrity in our conduct. Embedded with these values and backed by leading edge technology, more than 700 personnnel are working all over the country with the global mission to improve the quality of human life by ensuring quality healthcare products.

In the more than six decades since its inception the company has evolved from being an importer to manufacturer by establishing its own manufacturing unit in Chittagong in 1967. In line with the global mergers and acquisitions the company has gone through identity changes from Glaxo to GlaxoWellcome Bangladesh in 1995, following the acquisition of Burroughs Wellcome and finally in 2002 to GlaxoSmithKline Bangladesh Limited, following the mega merger with SmithKlineBeecham in 2000.

The recently launched product - RevoladeTM is the first of its category of drug in the pharmaceutical market of Bangladesh for treating chronic ITP (unknown cause of bleeding). Our oral breast cancer medicine TykerbTM opened up yet another new arena in our Oncology segment augmented by recently launched VOTRIENTTM for renal cell carcinoma . Brands like VentolinTM, SeretideTM, ZinnatTM & CeximeTM till today continue to rank among the leaders in the respiratory and ani-infectives therapeutic areas.

Our leadership position in dermatology was further strengthened in the past years with the acquisition of Stiefel Laboratories, the world’s largest independent dermatology company. With the addition of the Stiefel portfolio of products, we are a stronger and more competitive driving force in dermatology and provide an even stronger portfolio of prescription, consumer, and aesthetic skin health products to patients.

The consumer healthcare division now caters to the consumers with healthfood drinks, biscuits and oral healthcare product. To further cater to the needs of different consumer groups extensions like Women’s Horlicks, Horlicks Lite etc have been added to the old heritage brand of HorlicksTM. Horlicks biscuits with different variants have recently been added to the portfolio along with MaltovaTM, BoostTM & GlaxoseTM in Bangladesh. With the launch of SensodyneTM, we have stepped into the Oral healthcare category in the country.

GSK has made a global commitment to re-invest 20% of the profits we make in developing countries to address issues around providing healthcare services to the underserved communities. In line with the above, in Bangladesh, we have been investing about one million GBP per year since 2010 in a number of projects with in partnerships with CARE, icddr,b and Friendship.

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

With 10 vaccine brands GSK Bangladesh leads the market of the country not only in terms of volume but also in terms of providing a whole range of disease prevention for both infants and adults. The introduction of the revolutionary cervical cancer vaccines for women in 2009 in the country, brought a new hope of light for prevention of one of the deadliest disease of women. Our Rotaviral diarrheal Vaccine RotarixTM and the recent entrant pneumococcal pneumonia vaccine SynflorixTM are effectively working towards preventing the two diseases which claims the most lives of infants in the country. Amongst others, the six in one- InfanrixTM Hexa vaccine for the infants have further enriched our vaccine portfolio.

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PROFILES OF THE WINNING COMPANIES

About Grameenphone Grameenphone (GP) is the largest mobile telecommunication service provider in Bangladesh in terms of revenue, network coverage and subscriber base, incorporated in October 10, 1996 and launched its commercial operations in March 26, 1997. The company listed on the Dhaka and Chittagong Stock Exchanges on November 11, 2009.

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

GP serves mobile telecommunications across the nation based on GSM standard in the 900 MHz, 1800 MHz and 2,100 MHz bands under the license awarded by Bangladesh Telecommunication Regulatory Commission (BTRC). After 15 years of successful operation, GP has got the operating license renewed on August 7, 2012 for the next 15 years effective from November 11, 2011. On September 12, 2013, GP obtained 3G license and launched commercial service from October 2013.

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Since started operation in Bangladesh, GP have been focused on customer experience and being the thought leader in mobile service innovations.

GP managed to cross a monumental milestone of 50 million subscriber base through its enduring commitment of offering innovative and customer centric products and services. This was also possible in connivance with our countrywide robust and reliable network built over the years.

Telenor Mobile Communications AS holds 55.8% of the shares in GP, while Grameen Telecom, the other main shareholder, holds 34.2%. The remaining 10% of the shares are held by general retail and institutional investors.

GP exists to help customers get the full benefit of communication services in their daily lives. We're here to help. As the fastest operator to spread 3G services throughout the country, GP can help people change their lifestyles through innovative internet services. Now more than 8 million people subscribe to GP’s data services changing the way they choose to lead their lives.

Different innovative value added services like 24 hours medical call centers with licensed physicians, study and education information, electronic purchasing of train tickets and utility bills pay related services through mobile device.

There are more than 300 Community Information Centers (CICs) across the country where people from rural areas can access within their capacity.

Company Information BUSINESS OPERATIONS Telecommunications CHAIRMAN Sigve Brekke DIRECTORS M Shahjahan Md. Ashraful Hassan Ms. Parveen Mahmud Hans Martin Hoegh Henrichsen Hakon Bruaset Kjol Tore Johnsen Pal Wien Espen Dr. Jamaluddin Ahmed FCA, and Ms. Rokia Afzal Rahman CEO Vivek Sood MANAGEMENT TEAM Allan Bonke Medhat EL Husseiny Mahmud Hossain Quazi Mohammad Shahed Dilip Pal Marcus Adaktusson, and Erlend Prestgard COMPANY SECRETARY Hossain Sadat REGISTERED OFFICE GPHouse Basundhara, Baridhara Dhaka-1229 WEBSITE www.grameenphone.com STATUTORY AUDITORS ACNABIN Chartered Accountants (From 2012)

PROFILES OF THE WINNING COMPANIES

GP believes to maintain its business focus, taking the nation forward with top priority. Being a socially responsible company, GP participates in a number of CSR activities based on three core areas of health, education and environment with the objective of maximizing the benefits of mobile telecommunications, promoting safer products and services and minimizing our carbon footprint.

GP believes in building strategic partnership, where necessary, with global names to enhance its strategic position and competitiveness. With that in mind, GP, on 01 September 2013, had partnered with Accenture, globally renowned company in ICT and Business Process Outsourcing (BPO), by selling 51% stake in Grameenphone IT Ltd. (GPIT).

Network GP has built strong image for its nationwide quality network covering more than 99% of the population and 90% of the total land of the country enabling EDGE/GPRS to all of its customers. It has modernized the entire network system with 3G compatibility which is highly efficient and energy saving. There are about 10,200 base stations around the country in around 9,000 locations.

Competition Bangladesh had 118.5 million subscribers as of September 2014. The other mobile operators and their market shares are: Banglalink (25.5%), Robi – (21.1%), Airtel Bangladesh – (6.7%), Citycell (1.1%) and Teletalk(3.2%). There is an intense market competition among the operators with the lowest tariff level in the world.

Employment GP has generated direct and indirect employment for a large number of people over the years. GP has a strong team of more than 2,900 permanent employees as of October 2014. A performance driven corporate culture along with opportunities for career growth has made GP a gender balanced and preferred employer in the Bangladesh Job market. Another 700,000 people are directly dependent on GP for their livelihood, working as dealers, retailers, vendors, contractors and other business partners.

Contribution to the Government

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

The company has so far invested more than BDT 253 billion to build its nationwide network and infrastructure since its inception, as well as the largest tax payer in the recent years with the cumulative contribution to the National Exchequer standing at BDT 401 billion, as of third quarter of 2014.

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PROFILES OF THE WINNING COMPANIES

Vision: A world free from all forms of exploitation and discrimination where everyone has the opportunity to realise their potential.

Mission: Our mission is to empower people and communities in situations of poverty, illiteracy, disease and social injustice. Our interventions aim to achieve large scale, positive changes through economic and social programmes that enable women and men to realise their potential.

Values: Integrity | Innovation | Inclusiveness | Effectiveness Over 110,000 BRAC workers touch the lives of an estimated 120 million people, using a wide array of tools such as education, healthcare, microfinance, legal rights training and more to achieve BRAC’s mission and strategic goals.

BRAC has diversified programme activities, of which major programmes in Bangladesh are: Microfinance: The programme is a critical component of BRAC’s holistic approach to support livelihoods.

As of December 2013, BRAC has 4.2 million borrowers and loan portfolio of Taka 7,145 crore. During the year 2013, the loan disbursement was over Taka 11,500 crore.

Education: BRAC schools are designed to give a second chance at learning to disadvantaged children who have been left out of the formal education system due to extreme poverty, displacement or discrimination.

BRAC runs 41,001 schools in Bangladesh and 9.98 million graduated from BRAC schools.

Health, Nutrition and Population: The programme aims to improve reproductive, maternal, neonatal, and child health and nutritional status, reduce vulnerability to communicable diseases, combat non-communicable diseases and enhance the quality of life. BRAC has 107,008 front line Community Health Workers. A number of 1.61 million women received ante-natal care and 1.27 million women received post-natal care in 2013. Malaria patients treated 11,428 and tuberculosis case detected and treated 89,983 in 2013.

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

Targeting the Ultra Poor: The programme focuses on improving the socioeconomic situation of those at the base of the economic pyramid. Living in extreme poverty, this group struggles to meet the minimal dietary requirements and faces difficulty to reach mainstream anti-poverty programmes like microfinance. As of December 2013, trainings were provided to 1.5 million ultra poor women and 467,300 ultra poor women received assets.

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Water, Sanitation & Hygiene: The programme provides sustainable and integrated services in rural and isolated areas, breaking the cycle of contamination caused by unsanitary latrines, unclean water and unsafe hygiene practices. As of December 2013, the programme served 30.7 million people with hygienic latrine and 1.92 million people with safe drinking water.

Agriculture and Food Security: The programme builds systems of production distribution and markets quality seeds at fair process. Research is conducted to develop better varieties and practices for the agricultural sector. The programme distributed 12,534 Metric Ton of seeds in 2013.

Human Rights and Legal Aid Services: The programme is dedicated to protecting and promoting human rights of the poor and marginalized through legal empowerment. As of December 2013, there are 3.8 million Human Rights and Legal Education participants.

Community Empowerment: The programme empowers the poor, especially women, by mobilizing communities to translate awareness into action. As of December 2013, the programme built 13,645 Community Institution (Polli Shomaj) and 174,901 shows are staged by Popular Theatre Group.

Gender Justice and Diversity: The programme works simultaneously within BRAC and the community to achieve gender equality. Through intervention of this programme 32,400 school-going girls were able to resist and protest against sexual harassment in their lives in 2013.

Social Enterprises & Investments: The BRAC model consists of a network of development programmes, social enterprises and investments. The surpluses generated by the social enterprises help fund the expenditure of the development programmes. The social enterprises also create employment for rural poor including artisans and farmers. BRAC’s investments ensure financially profitable investments in socially responsible areas, such as low income housing, small and medium enterprise loans, information technology and clean development mechanisms. Dividends from the investments support the financial health of the organisation and reduce dependency on donors. Major social enterprises include Aarong, nursery, fisheries, poultry, etc. and major investments are BRAC tea estate, BRAC Bank, Delta BRAC Housing Finance Corporation Ltd. (DBH) and bKash.

PROFILES OF THE WINNING COMPANIES

SAJIDA Foundation Introduction SAJIDA Foundation is a reputed national development organization, which has been working on reducing poverty and improving the livelihood of the poor since 1993. The organization has implemented a number of major development activities including Microfinance, Microinsurance, Health, Education and other specialized programs, specially designed for the poor and ultra poor in the urban and rural areas in eight districts of Bangladesh. Currently SAJIDA Foundation is operating in Dhaka, Narayangonj, Gazipur, Chittagong, Jamalpur, Narsingdi and Sunamgonj districts, covering a population of over 5.0 million people transforming the quality of their lives with positive impact. At present, SAJIDA is working with a consortium of national and international donors and partners such as Palli Karma-Sahayak Foundation (PKSF), Concern Worldwide, Irish Aid, BRAC, UNDP, GFATM, WaterAid, than fifty percent of SAJIDA programs are financed by SAJIDA’s own funds generated in the form of dividend earnings from Renata Ltd., Service charge on credit, savings of members and health service fees. SAJIDA own 51% share of Renata Limited. At present dividend earning from Renata Limited constitute a great part of SAJIDA’s financial sustainability.

Recognition SAJIDA received numerous awards in last seven years which includes the followings: •

The National Award for Best Presented Published Accounts and Reports from the Institute of Chartered Accountants of Bangladesh (ICAB) for the year 2006, 2008, 2009, 2010, 2011, 2012 and 2013 The Best Presented Published Accounts and Reports from the South Asian Federation of Accountants (SAFA) for the year 2006, 2008, 2009, 2010, 2011 and 2013 SAJIDA Foundation was awarded for by the ILO’s Microinsurance Innovation Facility for its commitment to enhancing the value of microinsurance and for participation in the ILO Practitioners Learning Group (PLG) on mproving Client Value from 2011-2013

•

In 2013 SAJIDA receives Citi Micro-entrepreneurship awards under Most Innovative Microfinance Institution (MFI)

Program Coverage Districts Unions Upazilas Population Covered Human Resources Male Total 979

6 259 55 5 million Female 607

Annual Budget (80 BDT≈$1) Year Amount (million BDT) 2010 -11 3,737 2011 -12 4,212 2012 -13 6,521 2013 -14 7,112 2014 -15 9,050 Microfinance Branches Total Members Borrowers Member Savings (million in BDT) Total Loan Disbursed (million in BDT) Loan Outstanding (million in BDT) Cumulative Recovery Rate (CRR) Microinsurance/ Nirapotta Members enrolled Death claims settled Cattle death claims settled Health claims settled Disaster claims settled Number of students received scholarships Legal services provided

Total 1,586

Donor Contribution (million BDT) 28.30 63.10 33.30 56.40 90.20 102 151,442 130,246 1,050 21,824 2,537 99.51% 123,224 4,281 6 36,092 846 566 1,282

Psychosocial Counseling Support Service Counseling Service - 145 clie nts (Male: 58, Female:87) Types of Counseling Clients Individual counseling 122 Family/Child Counseling 23 Couple Counseling 13 Total 158 Trainings Participants Workshops Malaria Control Population covere d Households covered Lab centres Functioning Blood slides examined Blood slides positive Rapid Diagnostic Tests (RDT) performed RDT positive Long Lasting Insecticidal Nets (LLIN) distributed Ordinary nets treated Tuberculosis (TB) Control Participants at orientation for NGO Staff on TB and HIV Participants at orientation of factory workers Participants at orientation of small private hospitals and clinics Participants at o rientation of graduate private practitioners Participants at orientation of non-graduate private practitioners Improving and promoting access to safe water, sanitation and hygiene for pavement dwellers and street children (IMPACT) Drop -in Cent ers Pavement Dwellers Centers Covered Beneficiaries Beneficiaries receiving safe water through Lalbagh DIC Beneficiaries accessing safe sanitation through Lalbagh DIC Beneficiaries accessing bathing facilities through Lalbagh DIC per day

Sessions 346 76 58 480 1,249 1,498 201,528 45,144 1 13,151 289 1,181 162 49,000 32,675 95 2,695 395 521 550

1 7 5,532 2,981 2,009 77

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

•

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PROFILES OF THE WINNING COMPANIES

Comparative Five Years: Statement of Financial Position

PARTICULARS

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

PROPERTY AND ASSETS Non-Current Assets Fixed assets at cost Accumulated depreciation Fixed assets -net of accumulated depreciation Investments in Renata Limited Investment in FDR, PSB and Share Deferred Expenses Total Non-Current Assets Current Assets Loan portfolio

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Motor cycle loan Advances, deposits and Prepayments Accounts receivables Inventories Cash and bank balance Total Current Assets Total Property and Assets LIABILITIES AND FUNDS Funds Capital fund Reserve fund Unutilized Donor fund Disaster Management Fund Other fund Total Funds Non-Current Liabilities Term loans Deferred Income Loan Loss Provision Members savings deposits Total Non-Current Liabilities Current Liabilities Micro Insurance/ Nirapotta Other current liabilities Total Current Liabilities Total Liabilities and Net Assets

FY 20092010

FY 20102011

FY 2011-2012

FY 20122013

FY 20132014

251,347,363

87,873,076

106,122,916

123,475,774

143,284,826

(31,348,023)

(43,400,211)

(53,429,597)

(74,924,574)

(93,021,117)

56,525,053

62,722,705

70,046,177

68,360,252

158,326,246

32,546,389

32,546,389

32,546,389

32,546,389

32,546,389

170,232,205

107,594,747

143,318,345

234,653,724

272,642,900

4,474,073

4,591,632

2,788,469

1,766,321

2,245,525

263,777,720

207,455,473

248,699,380

337,326,686

465,761,060

983,989,109 1,208,551,885

1,774,749,333 2,077,217,373 2,599,214,559

7,263,759

9,855,747

13,304,676

20,400,009

19,408,716

25,796,201

26,822,835

34,361,973

56,483,478

69,998,526

7,259,656

5,914,043

10,304,666

14,545,989

25,659,122

2,733,020

3,094,873

2,460,410

2,820,615

4,184,441

79,078,897

188,684,551

176,763,992

358,564,168

287,068,361

1,106,120,642 1,442,923,934

2,011,945,050 2,530,031,632 3,005,533,725

1,369,898,362 1,650,379,407

2,260,644,430 2,867,358,318 3,471,294,785

291,018,960 -

358,475,751 -

459,697,331 35,817,761

550,932,059 43,178,784

718,470,401 54,454,486

2,940,392

956,288

6,171,306

5,447,629

13,332,595

7,374,502

10,539,287

15,744,321

22,203,409

30,066,502

12,262,633

19,443,332

29,174,782

42,346,479

58,663,613

313,596,487

389,414,658

546,605,501

664,108,360

874,987,597

672,225,162

794,507,650

3,795,615

5,792,305

1,596,320

2,184,001

1,599,088

28,830,503

37,249,533

45,781,645

58,465,167

77,613,734

335,456,499

412,000,651

1,093,531,406 1,372,348,858 1,455,287,499

563,023,297

740,862,934 1,017,188,101

1,040,307,779 1,249,550,139

1,703,932,668 2,173,860,960 2,551,688,422

5,402,143 2,861,525 10,591,953 8,553,085 15,994,096 11,414,610 1,369,898,362 1,650,379,407

(737,488) 16,741,628 26,961,760 10,843,749 12,647,370 17,657,006 10,106,261 29,388,998 44,618,766 2,260,644,430 2,867,358,318 3,471,294,785

PROFILES OF THE WINNING COMPANIES

Introduction UDDIPAN, a rights based national level non government development organization has been working for more than 30 years with an aim of promoting and establishing human rights & livelihood standards of the disadvantaged and marginalized people across the country.

VISION An environmentally sound society free from exploitation, oppression, injustice, discrimination and poverty where children, youths, women and men live with dignity and capable to exercise and enjoy their rights and will have access to opportunities irrespective of caste, creed and color.

MISSION Socio economic empowerment of the disadvantaged people for Socio economic empowerment of the disadvantaged people for: Establishing their rights through social mobilization, building awareness, development and promotion of people’s organizations, policy advocacy and lobbying for positive change with environment friendly initiatives.

Poverty alleviation through employment and income generation for the disadvantaged families and develop leadership, entrepreneurial skills and human resource potentials.

Coverage at a Glance as on October, 2014

Significant Innovations • Creating space for opening bank account for child labour and street children • Reduce climate vulnerabilities through children participation • Develop and practice community based disaster risk reduction (DRR) action plan by the children • Waste management by the children for reducing green house gas (Carbon & Mithen gas) considering climate change.

• Web based registration for children at risk for migration and migrant children in union pareshad, pourashava and police station.

• Promotion of massive Bashok leaf cultivation for preparing medicine in the pharmaceutical factories • Introduced ‘Child Safe Space’ in emergency • Piloting of a Participatory Micro Finance project ‘Shammo’ for messing disadvantage group of the community.

Plan for future intervention: • Appropriate and environment friendly Agricultural; • Bio-gas plant; • Introducing Information Technology based work flow • Mobile and virtual banking • Branchless micro finance operation • Solar Mini-grid • Micro finance operation through practicing Value chain • Customer focus Micro Insurance Product • Innovative and diversified deposit product for poorer section • Establish oldage home • After school coaching for rural primary school students • Introduce Automated Reporting System • Introduce solar based irrigation; Major programs & activities of UDDIPAN UDDIPAN has several diversified program priorities particularly economic empowerment, Human Rights including Child Rights governance, promotion of livelihood, Children & Youth skill development, Children’s

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

As on October, 2014 UDDIPAN has reached a total of 19,990 community based groups and community based people’s organizations covering 7,175 villages , 1,278 unions , 165 ,upazilas under 37 districts of Bangladesh and encompassing 22,93,325 beneficiaries through implementing its programs. UDDIPAN has a total of 254 Branch Offices (Including unit and projects offices) which are being administered by 11 Regional Offices and 02 Zonal Offices. The organization has a team of 2954 staff members. They have been facilitating & providing services to the participating families for bringing a holistic change in their life through implementation of a verity of development programs.

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PROFILES OF THE WINNING COMPANIES

banking, agricultural diversification, climate Change & adaptation, environment promoting green energy, disaster risk reduction and capacity building.

Thematic programmatic focus of UDDIPAN are-a) Economic development, b) Social development & human rights and c) Capacity building & knowledge management.

Recognitions & acknowledgements ( Awards) from • UDDIPAN achieved award from PKSF which is considered as national level Award for Microfinance titled “Long term sustainable best micro-credit organization” in 2008 in recognitions of its micro credit services.

• ICAB Award for best presented Accounts & Annual reports starting from 2007-2008 to 2008-2009, 2009-2010 , 2010-2011 & 2011-2012 • SAFA & SAARC Anniversary Award for best presented Accounts & Annual reports for 2010-2011 & 2011-2012 • Award from INAFI / DFID for Productive Utilization of Migrant workers Remittance, 2009.

• Award from AED / USAID for Defense of Human Rights, 2006.

United Development Initiaves Programmed Actions -UDDIPAN Statement of Comprehensive Income For the year ended June ,30 PARTICULARS Income: Operating Income Non Operating Income Total Income Expenditure Operating Expenses Financial Expenses Loan Loss Provision Expenses (LLPE) Disaster management fund expenses(DMFE) Total Expenditure Net Income

2009-2010

2010-2011

484,650,267 24,456,126 509,106,393

551,968,495 27,676,230 579,644,725

304,579,694 94,695,914 30,410,969 4,109,676 433,796,253 75,310,140

343,566,378 122,667,481 72,431,220 5,218,701 543,883,780 35,760,945

Financial Year 2011-2012

2012-2013

2013-2014

662,254,646 14,914,116 677,168,762

818,634,503 15,155,094 833,789,597

944,710,852 109,279,044 1,053,989,896

376,363,846 150,950,269 55,214,156 5,999,671 588,527,942 88,640,820

431,365,576 197,155,389 30,654,380 7,294,741 666,470,086 167,319,511

611,626,294 260,756,942 38,747,503 8,960,854 920,091,593 133,898,303

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

United Development Initiaves Programmed Actions -UDDIPAN Statement of Financial Position as on June ,30

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PARTICULARS PROPERTIES & ASSETS Non-Current Assets Property, Plant and Equipment Investment Loan to Clients Other Loans Total Non- Current Assets Current Assets Loan to Clients Term Deposit Inventories Other Loans Accounts Receivable Deposits & Repayment Cash and cash equivalents Total Currents Assets Total Properties & Assets CAPITAL & LIABILITIES Capital : Cumulative Surplus Reserve Fund Loan Loss Provision (LLP) Disaster Management Fund (DMF) Total Capital Fund Non- Current Liabilities Term Loan Clients Deposits Staff Welfare Deposit Staff Gratuity Fund Motor Cycle Replacement Fund Total Non- Currents Liabilities Current Liabilities Term Loan Clients Deposits Client's Micro Credit Insurance Fund Other Loan Accounts Payable Provisions Staff Security Deposit Staff Welfare Fund Other liabilities Total Current Liabilities Total Capital & Liabilities

Financial Year 2011-2012

2009-2010

2010-2011

2012-2013

2013-2014

88,108,394 7,319,585 11,900,540 107,328,519

107,268,092 67,673,507 10,832,244 185,773,843

119,803,394 192,644,539 18,127,595 330,575,528

134,453,912 1,000,000 138,390,176 11,214,560 285,058,648

172,106,382 1,900,000 166,381,044 26,575,168 366,962,594

2,045,284,388 48,000,000 366,383 21,086,609 3,011,865 197,690 229,644,093 2,347,591,028 2,454,919,547

2,329,791,904 209,000,000 4,075,250 5,148,279 7,693,745 22,062,112 291,718,220 2,869,489,510 3,055,263,353

2,709,395,319 147,000,000 2,734,985 13,101,953 22,126,477 29,373,872 367,548,593 3,291,281,199 3,621,856,727

3,575,304,626 180,600,000 13,116,326 27,111,489 44,314,389 42,358,752 272,301,195 4,155,106,777 4,440,165,425

4,487,173,064 302,600,000 22,647,001 16,899,749 50,523,606 24,745,575 668,133,711 5,572,722,706 5,939,685,300

244,490,844 74,312,529 12,878,557 331,681,930

280,236,790 156,980,565 18,289,062 455,506,417

349,181,814 32,501,349 228,414,841 24,288,733 634,386,737

495,980,777 48,979,780 185,914,351 31,583,474 762,458,382

614,109,181 61,861,542 44,336,155 40,544,328 760,851,206

702,178,556 271,050,011 1,465,900 29,155,976 5,206,858 1,009,057,301

624,744,965 357,913,067 5,550,200 44,049,780 4,279,938 1,036,537,950

694,273,794 2,264,129 8,608,390 56,060,500 4,459,658 765,666,471

860,765,856 3,950,922 9,664,667 62,048,070 4,582,515 941,012,030

1,228,267,139 230,127,169 20,950,380 97,293,593 4,922,520 1,581,560,801

651,586,195 418,978,729 22,506,678 966,326 545,156 377,699 6,769,192 6,622,197 5,828,144 1,114,180,316 2,454,919,547

984,793,359 518,107,673 34,692,501 1,062,128 1,614,408 1,000,000 7,340,448 8,701,991 5,906,478 1,563,218,986 3,055,263,353

1,094,681,666 1,048,611,771 49,706,975 1,240,439 2,872,003 283,301 7,451,647 10,777,542 6,178,175 2,221,803,519 3,621,856,727

1,287,120,109 1,319,294,217 86,640,622 1,235,842 10,578,479 1,082,593 7,814,947 12,218,533 10,709,671 2,736,695,013 4,440,165,425

1,727,905,103 1,482,522,718 182,564,372 44,976 12,169,179 152,975 191,913,970 3,597,273,293 5,939,685,300

PROFILES OF THE WINNING COMPANIES

Background The Investment Corporation of Bangladesh (ICB) was established on 1 October 1976 by an Ordinance of 1976 (No. XL of 1976). The establishment of ICB was a major step in a series of measures undertaken by the government to accelerate the pace of industrialization and to develop a well-organized and vibrant capital market, particularly securities market in Bangladesh. Through the enactment of the Investment Corporation of Bangladesh (Amendment) Act, 2000 (Act No. 24 of 2000), reforms in operational strategies and business policies have been implemented by establishing and operating subsidiary companies under ICB. At present the Corporation is being operated under the "Investment Corporation of Bangladesh Act, 2014 (No. XII of 2014).

Objectives • Encourage and broaden the base of investments; • Develop the capital market; • Mobilize savings; • Promote and establish subsidiary companies for business expansion and; • Provide for matters ancillary thereto.

Products and Services of ICB & it s Subsidiaries: Investment Corporation of Bangladesh Specialised Segment:

Advance Against Equity , Private Equity,

Equity and Entrepreneurship Fund/Venture Capital

Placement of Shares

Financing

Advance Against Unit/Mutual Funds

Debenture Financing

Merger & Acquisition

Lease Financ ing

Agent for Divestment of Govt. Shares

Money Market Segment:

Managing Margin Loan Accounts, Unit and Mutual

Dealing in Money market instruments: Subordinated

Funds

Zero Coupon Bond, Term Deposit Receipt

Trustee and Custodian

Fixed Deposit Receipt

Portfolio Management

Issuing Bank Guarantee

Investing in Preference Shares

Consumer Credit Scheme

Investing in Secondary Market

Corporate Financial Advice

Subsidiaries ICB Capital Management Ltd. :

ICB Asset Management Co. Ltd. :

Issue Management

Unit Funds Management

Portfolio Management

Mutual Fund s Management

Underwriting

ICB Securities Trading Co. Ltd. :

Investors Scheme

Brokerage Service s Full Services as a Depository Participant with CDBL Stock Market Operation

&

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

Capital Market Segment :

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PROFILES OF THE WINNING COMPANIES

Five Years Performance of ICB(Solo): Particulars Authorized Capital Paid-up Capital Total Shareholders’ Equity Total Assets Total Liabilities Reserve Retained Profit Govt. Loan Debenture Loan Income Expenditure Net Profit NAV (Tk. per share) EPS (Tk.) Market price per share (Tk.) Dividend (%) Cash Stock Dividend yield (%) Price Earning Ratio (Times) Net profit per employee No of shareholders Branches Subsidiaries Manpower: Officer: Staff: Total:

500.00 200.00 598.86 3319.89 2721.03 1820.12 222.25 3.50 11.80 527.62 314.57 313.04 939.40 125.22 4991.75

500.00 250.00 2579.06 5277.44 2698.38 1921.29 406.37 3.15 6.80 668.35 282.83 385.52 1035.23 114.16 3749.50

500.00 337.50 2214.08 5566.04 3351.95 1428.11 448.47 2.80 1.80 848.75 454.61 394.14 658.78 116.78 1991.50

1000.00 421.88 2112.04 7128.97 5016.93 1382.21 307.95 2.45 788.91 541.00 247.91 503.23 58.76 1796.50

Tk. in Crore 2013-14 (provisional) 1000.00 421.88 2591.85 8618.42 6026.57 1807.83 362.14 58.78 945.58 637.64 307.94 614.36 72.99 1889.25

15 25 0.10 60.20 0.65 1294 7 3

15 35 0.40 30.67 0.84 1929 7 3

26 25 2.51 21.31 0.73 2225 7 3

40 2.23 30.57 0.47 2829 7 3

25.88 0.54 3303 7 3

290 188 478

287 174 461

346 194 540

360 172 532

355 219 574

2009-10

2010-11

2011-12

2012-13

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Our Position in the Industry (in 2013-14)

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Sl. 1.

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Particulars Issue management Underwriting Asset Management Mutual Fund Management Stock Market operation Trustee & Custodian service Earning performance Dividend performance Customer base Infrastructure Investment Customer Service Contribution to National Exchequer

Position Top Top Top Top 1st/2nd since inception Top One of the Best Outstanding (50% to 105% in last 5 years) Largest Largest Modern & non-discriminating Largest among public sector institution

13.

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Employee effectiveness & efficiency Capital Adequacy Ratio

Highly satisfactory Top

Award and Recognition ICB has been awarded 8 (Eight) prestigious awards during 2012-13 & 2013-14 for• Best Investment Bank, Bangladesh-2013/ Bank in the country by World Finance, UK • Majestic five continents Award for Quality & Excellence by Paris based OMAC • Best Corporate Award-2012 by ICMAB ( in Special Category) • Best Corporate Award-2013 by ICMAB ( in Special Category) • Best Presented Annual Report Award 2012 by ICAB (1st in Public sector entities) • Best Presented Annual Report Award 2012 by SAFA (1st in Public sector entities) • Best Presented Annual Report Award 2013 by ICAB (1st in Public sector entities) • Best Presented Annual Report Award 2013 by SAFA ( in Public sector entities)

PROFILES OF THE WINNING COMPANIES

Green Delta Insurance Company Limited (GDIC) is one of the leading private non life insurance companies in Bangladesh. GDIC was incorporated in December 14, 1985 as a public limited company, under the Companies' Act 1913 and business started on 1st January 1986, with a paid up capital of BDT 30.00 million. Now, Green Delta Insurance Company Ltd. is amassed about BDT 734 million with a credit rating of AAA and ST1. GDIC holds the proud distinction of being the first ever company to raise its paid up capital to such a level. This is also the 1st Insurance Company in Bangladesh to have equity partnership with International Finance Corporation (IFC) of World Bank Group. With a presence in the strategically important parts of the country, which includes 39 branches, Green Delta Insurance Company has established its prominent presence with equity participation in Delta BRAC Housing Ltd., Progressive Life Insurance Co Ltd, United Hospital Ltd. FinExcel Ltd. and BD Venture Ltd. Green Delta Capital Ltd., Green Delta Securities Ltd., Professional Advancement Bangladesh Limited and GD Assist Limited are four of the direct subsidiaries. GDIC provides stock brokerage services through Green Delta Securities Ltd. (GDSL) and Investment Banking services through Green Delta Capital Ltd. (GDCL). Professional Advancement Bangladesh Limited provides international standard professional trainings, in collaboration with CII, UK and GD Assist Limited is an agency promoting health and marketing services.

As a part of the recognition for the contribution in the development of the insurance industry and for maintaining the standard of service, the company has been considered as one of the top 500 companies according to the renowned Rating Agency, Dun Bradstreet Rate Agency of Bangladesh. The company has also been awarded with many national and international awards like – “ICAB National Awards” for Best Published Accounts, ICMAB Best Corporate Award in Insurance category, “Certificate of Merit” for the Best Presented Accounts Award in the category ‘Insurance Sector’ by the South Asian Federation of Accounts (SAFA), “International Quality Crown Award” by BID International in London, The BIZZ Award by World Business confederation of Business, USA for leadership, Excellence in a management, Quality and Marketing, “The Diamond Eye Award For Quality & Excellence” by BID OTHERWAYS, The Platinum Technology Award for Quality & Best trade name by Association OtherWays in Berlin, International Star Award for Leadership in quality in the Gold, Platinum and Diamond categories and many more. With the slogan “Marches with time” - during the last 28 years - GDIC has been helping people in their time of need; pulling out all the steps when needed, and has been proud to be a partner in progress.

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

Under the charismatic leadership of Mr. Nasir A Choudhury, Advisor and Ms. Farzana Chowdhury, Managing Director and CEO of Green Delta Insurance Company Ltd. has been leading the winds of change in the insurance industry of the country in terms of service standard, innovative products and legislative restructuring. After 28 years of glorious journey in the Insurance sector, Green Delta Insurance Company Limited has now become a big family of 14 respected board members, 600+ committed staff, numerous valued clients and thousands of esteemed shareholders. By now, Green Delta has been able to uphold the brand image as a prompt claim settler, superior service provider, and diversified product supplier – almost like a one stop solution provider in the non life insurance sector in the country.

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PROFILES OF THE WINNING COMPANIES

ABOUT RELIANCE INSURANCE LIMITED A leading first generation private sector Non-life Insurance company in Bangladesh, Reliance Insurance Limited (RIL) was incorporated in 1988 as a public limited company under the Companies Act, 1913 ( present 1994) and subsequently was listed with Dhaka and Chittagong Stock Exchanges in 1995. Reliance transacts all classes of non-life insurance business in Bangladesh and its turnover was in excess of BDT 1,638.89 million, being total gross premium underwritten in 2013. The Company carries its insurance activities through thirty one branches spread across the whole country. RIL received “AA+” (Double A Plus)” Surveillance Rating (Stable outlook) from CRISL based on its sound financial performance and claim paying ability.

Reliance has an authorized capital of Tk. 2,000 million and paid up capital of Tk 597.42 million. Shares of the company are traded on both Dhaka Stock Exchange and Chittagong Stock Exchange and are listed in the “A” category. The company has a total market capitalization of approximately Tk 4,140.40 million as of 31st December 2013.

Reliance is focused on providing professional services of the highest quality to its clientele which include many reputed large national and multinational conglomerates. Over the years, Reliance has established its track record as a sound and dependable insurer, consistently able to meet its commitments and by providing insurance solution to the individual needs of its clients.

The Board of Directors of Reliance comprises a good number of eminent entrepreneurs and personalities of the country. The management team is headed by Mr. Md. Khaled Mamun ACII (UK), who has over 20 years of experience in the insurance industry including 11 years of service in state owned Sadharan Bima Corporation. Other members of the team are highly qualified professionals, who have been trained abroad.

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

Financial performance of the company has been consistently positive delivering both underwriting and investment income and by giving attractive returns to its shareholders. The Company has over the years been maintaining strong corporate culture, corporate governance, ethical standards, corporate social responsibilities, superior underwriting skills and abilities and dynamic investment decisions.

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OUR VISION is to become the Premier Insurance organization and the Insurer of first choice in Bangladesh with a sound reputation for dependability, professionalism and the highest standards of customer services.

OUR MISSION is to: grow significantly and achieve significant non-life insurance market share. continue delivering attractive returns to our shareholders. become a caring organization and employer of choice. invest in top quality human resources and develop full potentials of employees by providing continued training and insurance education. bring innovation in insurance products and selling techniques.

OUR CORE VALUES 1.

Transparency: We encourage and inculcate total transparency and communicate openly & honestly with all our stakeholders and clients. We accept our individual and team responsibilities and we make and support business decisions through experience and good judgment.

2.

Integrity: We are committed to employ the highest ethical standards, demonstrating honesty and fairness in all our actions.

3.

Professionalism & Excellence: We believe in developing a highly motivated, valued and diverse workforce. We strive constantly to be the best in quality and in everything we do in order to meet and exceed the highest expectations of our customers.

4.

Customer Focus: We are dedicated to satisfying customer needs and honoring commitments that we have made to them. Our customers are our partners and we remain committed to build strong relationship with them and value their loyalty as our best rewards.

5.

Result Focus: We are result focused. We strive to timely, tenaciously and consistently execute well developed plans, goals and objectives and we accept responsibility for the results they deliver.

6.

Teamwork: We are committed to a teamwork environment where every individual is a valued member, treated with respect, encouraged to contribute and recognized and rewarded for his/her efforts.

Property Insurances Fire Insurance (including Allied Perils) Property Damage All Risks Industrial All Risks (IAR) including Business Interruption Comprehensive Machinery Insurance Marine Insurances Marine Cargo Marine Hull Builders Risks Insurances Engineering Insurances Machinery Breakdown Insurance (MBD) Deterioration of Stocks (DOS) Boiler and Pressure Vessel (BPV) Electronic Equipment Insurance (EEI) Erection All Risks (EAR) Contractors’ All Risks (CAR) Work Plant (WP) Oil & Gas Well Drilling Equipment Package (OGD) Contractors Plant & Machinery (CPM) Motor Insurances Motor Insurances for Commercial use Motor Insurances for Private use Specialised Motor Vehicle

Miscellaneous Insurances Burglary Cash in Safe, Cash in Transit, Cash on Counter, Cash in Premises Fidelity Guarantee All Risks Product Liability Public Liability Directors’ & Officers’ Liability Insurance Workmen’s Compensation Employer’s Liability Marine Terminal Operators Liability (MTOL) Comprehensive General Liability Hole in One (Golf) Insurance/Event Cover Hotel Owner’s All Risks (HOAR) Personal Accident Insurance People Personal Accident Aviation Insurance-Aircraft Hull, Liability and Related Risks Overseas Mediclaim Business and Holiday (B&H) Corporate Frequent Travels (CFT) Employment and Study (E&S) Health Insurance

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PROFILES OF THE WINNING COMPANIES

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PROFILES OF THE WINNING COMPANIES

PRIME INSURANCE COMPANY LIMITED Prime Insurance Company was incorporated as a Public Limited Company on 21 March 1996 under the Companies act, 1994 and has obtained registration from the Chief Controller of Insurance, Government of the People’s Republic of Bangladesh on 31 March 1996. Subsequently, the Company has been listed with Dhaka Stock Exchange and Chittagong Stock Exchange in the year 2001.

The company has specialized and significant expertise in underwriting Fire, Marine Hull, Marine Cargo, Motor, Engineering, Miscellaneous Accident, Shipbuilders Liability Coverage, Hajj & Umrah Insurance, Erection/Contractors All Risk Coverage, Aviation, Health and Medical Insurance etc .

It is first insurance company in Bangladesh, who works and serves through online digital system.

All its 20 branches run through this automation system and provide prompt service to the Clients.

Qualifying through sincerity, honesty, hard work & professionalism, Prime Insurance is the first general insurance company in Bangladesh who achieved ISO 9001:2008 certification in the year of 2011 for its Quality Management System and maintaining the position.

As a consequence of the good financial performance, improving solvency position, diversified investment portfolio, high claim paying ability, strong IT infrastructure and experienced top management team the Credit Rating Information & Services Limited(CRISL) has rated Prime Insurance Company A+(A Plus) for the year 2013.

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

Besides, the company has achieved a number of award and recognition for improvement in Transparency, Accountability and Governance of the published Annual Report:

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“Certificate of Merit” award from “South Asian Federation of Accountants (SAFA)” for “Best Presented Annual Reports 2013” for Transparency, Accountancy and Good Governance among the SAFA Countries

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“Certificate of Merit” award from “South Asian Federation of Accountants (SAFA)” for “Best Presented Annual Reports 2012” for Transparency, Accountancy and Good Governance among the SAFA Countries

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Third Prize from 14th ICAB National Award for Best Presented Annual Report -2013, under the Category Insurance Sector

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Third Prize from 13th ICAB National Award for Best Presented Annual Report -2012, under the Category: Insurance Sector and also for the year 2012

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“Certificate of Merit – 2012” as the Best Corporate in General Insurance Sector from the “Institute of Cost and Management Accountants of Bangladesh (ICMAB)”.

With an experience of over 18 years, Prime Insurance has contributed significantly to the growth and development of the non-life insurance industry in Bangladesh. With the passage of time the company has diversified its business to mitigate the growing needs of the people.

In the year 2014 the company has launched two new products: Hajj & Umrah Insurance which is first time in Bangladesh and also Health Insurance. Both the coverage’s have collected from abroad. Within a very short period of time the company will launch Bankers Blanket Bond (BBB) Coverage, Cyber Crime Coverage, Directors & Employers Liability Coverage and Professional Indemnity Coverage for the commercial banks/ financial institutions in our country.

Being a pioneer in technology driven company Prime Insurance has developed and launched Mobile Application to provide services towards the Clients to create interaction between the Client and the Company. Using this App the Business Partner Clients can receive faster service and information at the shortest period. It is the first insurance company in Bangladesh who has developed such kind of Client friendly Mobile App. Apart from these, to create consciousness on the insurance policies and other financial and social issues Prime Insurance organizes workshops/trainings/seminars with international standards.

Besides the company also provides free consultation on insurance subject so that people can know the insurance sector of the country and avail the benefits.

PROFILES OF THE WINNING COMPANIES

Prime Insurance always maintains its high quality of service and committed to provide quality service with Highest Standard of Security to the Business Partner Clients along with increasing awareness on the insurance safety in the country as well as enhancing public confidence in the insurance industry.

Today the company has been recognized as one of the most reputed insurance industry both in National and International arena.

For more information about the Company Please Visit: www.prime-insurance.net

Prime Insurance Company Ltd. 5 Years Financial Highlights Particulars

Amount In Million (BDT) 2013

2012

2011

2010

2009

Financial Position (Equity Statistics) : Issued, Subscribed and Paid -Up Capital Share holders fund /Equity Reserve & Surplus Current liabilities Total Liabilities & Equity

338.53 565.07 226.54 477.89 1042.96

294.37 478.56 184.20 442.14 920.71

267.61 406.09 138.48 365.38 775.47

205.85 329.93 62.34 316.03 649.96

171.55 246.69 75.14 303.83 554.52

Gross premium Income (Turnover) : Net premium Income : Management Expenses Net Claims Paid Reserve for Un-Expired business Operating (Underwriting) Profit/(loss) Investment Income & Others Income Gross profit / (Loss) Before Tax Current tax provision Net Profit / (Loss) After Tax & Reserve Earning Per Share (EPS) after Tax

544.94 249.77 106.11 11.83 107.54 97.76 52.95 127.63 41.12 53.22 2.56

440.24 266.34 98.36 27.46 107.97 74.58 35.57 101.68 29.21 48.85 2.46

305.37 203.50 69.92 38.16 86.40 25.87 43.89 60.82 10.00 28.45 1.90

200.10 102.99 48.5 19.72 54.50 5.08 93.40 92.73 9.50 71.44 4.04

177.04 97.21 36.03 33.47 48.85 12.62 56.42 55.7 6.50 36.48 2.87

Profitability , Performance and Liquidity Ratio : Gross Profit Ratio % Operating Income Ratio% on equity Net Income Ratio% on equity (after Tax) Gross Profit Ratio on gross Premium income% Operating Ratio on gross Premium income% Net Profit Ratio on gross Premium income% Earning Per Share before Tax (Taka) Earning Per Share after Tax (Taka) Earning Per Share after Tax & Reserve (Taka) Current Ratio(Times)

37.70 28.88 25.55 23.42 17.94 15.88 3.72 2.56 1.53 1.48

34.54 26.35 24.62 23.1 17.62 16.46 3.45 2.46 1.66 1.32

22.73 9.67 18.99 19.92 8.47 16.64 2.27 1.90 1.06 1.93

45.05 2.47 40.44 46.34 2.54 41.6 4.51 4.04 3.47 2.04

32.47 7.36 28.69 31.46 7.13 27.79 3.25 2.87 2.13 1.81

Shareholders Information : Stock dividend per Share % Net Assets Value (Book Value) Per share Earning Per Share (Taka ) after tax.

Market Value Closing Price Per Share

15% 16.69 2.56 32.30

15% 16.26 2.14 38.30

10% 15.17 1.90 53.90

30% 16.03 4.04 158.40

20% 14.38 2.87 45.85

71.8 320.14

61.65 260.75

41.84 258.88

27.08 170.91

23.93 130.5

1042.96 673.07 30.84 353.00 177.33 9.00 102.90

920.71 679.41 21.76 320.18 186.99 9.00 141.48

775.47 519.12 17.23 235.48 186.83 9.00 70.58

649.96 421.3 11.91 244.92 149.33 9.00

554.52 271.99 9.25 186.09 67.65 9.00

Solvency Margin Information : Required Solvency Margin Available Solvency Margin Investable Assets Quality : Total Assets : Total Investment : Cash at Bank Fixed Deposit Receipts Share Investment 10 years Govt,Treasury Bond Building Property

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Operational Performance :

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Decluttering The Financial Statements – Less is More Abu HM Kibria

The disclosure problem!

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

Is there a disclosure problem? – this was a question asked in a ‘Survey’ conducted by the International Accounting Standards Board (the IASB) in December 2012. An overwhelming majority of respondents (80%) said ‘yes’ – in their view there’s a disclosure problem.

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Those preparers who responded to the survey viewed the disclosure problem as primarily one of disclosure overload.

More than 80% of the respondents said there was “too much irrelevant information”.

Such responses epitomise the big challenges we are now facing around disclosures in financial statements and annual reports. Financial statements together with annual reports are getting bigger, thicker and bulkier every year.

One of the primary reasons is the disclosure clutter1. We tend to think the more disclosure we add to the financials the more useful they become to users. It may not necessarily resonate with users.

1

In this article we shall look at what the disclosure problem is and why it is becoming pervasive, what stakeholders are thinking and doing about it especially highlighting IASB’s new Exposure Draft, and some practical examples of how some organisations are trying to overcome it.

IASB’s Disclosure Initiative In the recent past there have been increasing calls for the IASB to review the disclosure requirements in IFRS. In response the IASB has taken different initiatives to address users’ concerns. The IASB initiatives include: a) Agenda Consultation 2011 b) Survey on disclosure initiative 2012 c) Discussion Forum on disclosure initiative 2013 d) Inclusion of Disclosure in the Revised Conceptual Framework 2013 e) Exposure Draft on Disclosure Initiative published in March 2014 which marks the culmination of the initiatives undertaken so far.

UK FRC Cutting Clutter Discussion Paper defines clutter as: • Immaterial disclosures that inhibit the ability to identify and understand relevant information; and • Explanatory information that remains unchanged from year to year.

IN SUMMARY, THE EXCITING LOOK AND FEEL, THE SLEEK GROUPING OF NOTES, BETTER PLACEMENT OF POLICIES WITH RELEVANT NOTES, IDENTIFICATION OF KEY ACCOUNTING REQUIREMENTS (I.E.

It is generally considered that financial statements’ one of the primary purposes is to provide stakeholders with information that is useful for making their economic decisions, e.g. resource allocation decisions, and assessing management’s stewardship. This is the communicative value of the financial statements.

However, providing piles of immaterial information can obscure useful information in financial statements diluting the communicative value. Such disclosure overload or clutter makes it difficult for users to filter the information that is relevant to them.

This view has been echoed by various stakeholders including the UK Financial Reporting Council (FRC), the participants of the Survey and Discussion Forum.

Many preparers and auditors claim that they ‘err on the side of caution’ because many regulators enforce ‘comply or explain approach’ asking why a particular disclosure is not considered material. In their view it leads to ‘better safe than sorry’ attitude.

Such caution by preparers or enforcement by regulators for immaterial disclosures together with lack of clarity by accounting standards on material disclosures render the financial statements to be a compliance document rather than a communication tool, which become, at times, full of unnecessary and excessive boilerplate disclosures.

RECOGNITION AND MEASUREMENT) WITH ENTITY SPECIFIC EVENTS, AND USE OF PLAIN ENGLISH DEFINITELY HELP USERS TO CONNECT

Stakeholders’ response to breaking the boilerplate

THE DOTS BETTER TO

Many stakeholders and the IASB have realised this cannot continue and it was time to break the boilerplate.

Various preparers, regulators, auditors, accounting bodies have undertaken initiatives in the recent past to understand and address the disclosure problem. Such organisations, in addition to the IASB, include:

BUSINESS.

• European Financial Reporting Advisory Group (EFRAG) • European Securities & Markets Authority (ESMA) • Financial Reporting Council (FRC), UK • US Financial Accounting Standards Board (FASB) • International Auditing and Assurance Standards Board (IAASB)

UNDERSTAND THE

14TH ICAB NATIONAL AWARD GIVING CEREMONY FOR BEST PRESENTED ANNUAL REPORTS 2013

Financial statements – communication tool or compliance document?

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The table below summarises the findings/suggestions emanating from work undertaken by above organisations: Organisation

Key findings/suggestions

EFRAG

•

•

Strengthening the application of materialityand developing principles to identify what information to include in the notes Consideration of a ‘tiered’ approach to disclosure (a core set plus an expanded set that is to be assessed by each entity) Encouraging behavioural change to switch from compliance to communicationmode Additional guidance re the application of the mater iality concept to disclosure requirements There is lack of clarity around materiality re disclosures Clutter undermines the usefulness of accounts by obscuring important messages Behavioural barriers need to be overcome

• • •

Clearer communication onimportant disclosures Application of the concept of materiality to disclosures Sufficiency and appropriateness of audit evidence for disclosures

• • ESMA

•

FRC

• •

FASB IAASB

The theme of the above projects can be summarised in the following top two concerns/suggestions: i. need for clarity on materiality in disclosure; ii. need for action and behavioural change.

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The IASB’s response

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To address the most pressing issue – clarity on materiality in disclosure, the IASB has released the Exposure Draft (ED) we are focusing here (this ED is part of IASB’s short-term projects in addressing disclosure problem. In the long-term IASB intends to replace IAS 1, IAS 7 and IAS 8, and revise disclosure requirements in individual Standards). At a high-level, the ED proposes: • clarity on materiality • flexibility in organisation of note structures • removing perceived rigidity in the presentation of accounting policies

Materiality The prime objective of the proposed narrow-focus changes is to allow users to be able to apply their judgement in terms of presentation and disclosure requirements. For example, a particular standard being relevant and material to the financial statements does not automatically mean every disclosure requirement in that standard will provide material information.

Instead, each disclosure should be judged and assessed individually from a materiality standpoint.

On materiality, the ED proposes the following: i. entities shall not aggregate or disaggregate information in a manner that obscures useful information; ii. the materiality requirements apply to the statement(s) of profit or loss and other comprehensive income, statement of financial position, statement of cash flows and statements of changes in equity and to the notes; and

iii. when a Standard requires a specific disclosure, the resulting information shall be assessed to determine whether it is material and consequently whether presentation or disclosure of that information is warranted The central issue IASB is trying to address here is that information should not be added to the financial statements thoughtlessly that obscures useful information and makes it difficult for users to filter them.

Revision to paragraph 31 seems to hand back a lot of decision making ability around disclosures to the preparers. The revised paragraph reads: “... An entity need not provide a specific disclosure required by an IFRS in the financial statements, including in the notes, if the information resulting from that disclosure is not material. This is the case even if the IFRS contains a list of specific requirements or describes them as minimum requirements...”

Some preparers have told IASB that some of the existing requirements in IAS 1 make it difficult for preparers to exercise their judgement in presenting their financial statements. For example, paragraph 114 of IAS 1 suggests a ‘normal’ order of presentation.

Many preparers view that this makes it difficult for an entity to present the explanatory notes in order of importance or to present related information together in a cohesive manner, which may render the financials disjointed for users at times. Some also viewed not using ‘normal’ order may make the financials ‘abnormal’ as they consider paragraph 114 to be prescriptive.

To address such concerns, the ED proposes that: i. the understandability and comparability of financial statements should be considered by an entity when deciding the systematic order for the notes; and ii. entities have flexibility as to the systematic order for the notes, which does not need to be in the order listed in paragraph 114 of IAS 1.

A new paragraph (113A) is being proposed to allow preparers the flexibility to give prominence to the notes they consider more important than others and also to group them in a more meaningful manner. The proposed para 113A reads: “When determining a systematic order for the notes, an entity may order notes in a way that gives prominence to disclosures that it views as more relevant to an understanding of its financial position or financial performance or makes the relationship between some disclosures more understandable...”

While there is no specific prohibition to order the notes in a

way more understandable and meaningful to users in the current Standard, many preparers took the view that requirements of paragraph 114 were too rigid.

New clarification should assist preparers to apply flexibility and present bigger picture of their business in a coherent manner.

Accounting policies In many stakeholders’ view the accounting policy section of financial statements is long, unhelpful, and does not distinguish between important policies and those that are just regurgitations of IFRS. UK FRC notes that a lot of information often remains unchanged from year to year with individual policies copied from boilerplate disclosures or IFRSs running to several pages adding clutter to the financial statements.

Some requirements in the current version of IAS 1 may be to blame for such clutter. For example, IAS 1 requires only significant accounting policies to be disclosed but paragraph 120 suggests if an entity is subject to income tax then it should include its accounting policy on income taxes. If we turn to IAS 12 Income Taxes, it does not provide any choice to entities which lead preparers to use either boilerplate policies or regurgitate from the Standard. Some preparers also interpret this as requiring an entity to disclose the accounting policy for any activity it undertakes.

identifying a significant accounting policy, including removing potentially unhelpful examples.

Addressing the behavioural barrier Behavioural barrier is as big an issue as that of lack of clarity in current standards when it comes to decluttering the financial statements. UK FRC finds it is everyone’s behaviour that is leading to the clutter including preparers, auditors, regulators, standard setters.

The bold step by the IASB As a standard setter, the IASB has taken a bold step to declutter its own financial statements.

Prior to publishing the ED, the IASB had tried for itself first-hand to reduce the clutter even within the current IFRS requirements. It’d been successful – the IASB claimed its 2012 Annual Report was 25% less in size than that of 2011 yet increasing the amount of useful information. IASB also claimed to have made their Annual Report easier to read by reducing clutter.

ITV UK lead in cutting the clutter On the preparers’ side, ITV UK has taken the lead in not only cutting the clutter but also making the financials more meaningful for the users and better connected from a presentation view point.

Many preparers voiced that they would like to be able to either delete boilerplate accounting policy disclosures or relegate them to a website or to the back of the financial statements.

Let’s have a quick look at what ITV has done differently from others in its 2013 financial statements. The stand-out features include:

To strip back the apparently onerous and unnecessary disclosure requirement, the ED proposes: i. to remove the guidance in paragraph 120 of IAS 1 for

b) Connected notes

a) Improvised look and feel c) Location and presentation of accounting policies and use of plain English

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Note structure

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a) Look and feel: The ‘look and feel’ is different from stereotype financial statements. The financials start with a narrative instead of a number, and the narrative

attempts to explain the numbers that follow.

The differential style of presentation aims to make the financials less complex and more relevant for users.

The introductory ‘In this section’ paragraph is included at the beginning of each section and briefly explains what the section is about. ‘Keeping it simple’ paragraph is included at the beginning of each policy and

This is how the financials begin:

In this section...

The financial statements have been presented in a style which attempts to make them less complex and more relevant to shareholders. We have grouped the note disclosures into five sections: ‘Basis of Preparation’, ‘Results for the Year’. ‘Operating Assets and Liabilities’, ‘Capital Structure and Financing Costs’ and ‘Other Notes’. Each section sets out the accounting policies applied in producing the relevant notes, along with details of any key judgments and estimates used. The purpose of this format is to provide readers with a clearer understanding of what drives financial performance of the Group. The aim of the text in boxes is to provide commentary on each section, or note, in plain English.

Keeping it simple...

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Notes to the financial statements provide information required by statute, accounting standards or Listing Rules to explain a particular feature of the financial statements. The notes which follow will also provide explanations and additional disclosure to assist readers’ understanding and interpretation of the annual report and the financial statements.

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succinctly describes the policy in plain English, where feasible, and cues users in on how to read/interpret the numbers reported.

i. Basis of preparation – this describes the overall basis on which the financial statements is prepared. This sets the tone of the financial statements.

b) Note structure

ii. Results for the year – this is perhaps the most important section of the financials. This focuses on the results and performance (i.e. profit before tax) of the Group which users are likely to be most interested in. Accordingly this is given top priority in the order.

“Keeping it simple” note explains what is Group’s key performance/profit indicator (KPI) and ensuing analyses show the users how the Group has fared.

The note disclosures are categorised in 5 sections which are organised in the same vein as management would assess the operation and related results. The purpose is to structure the presentation of items in the financials in the order of importance and relevance for the business. The more relevant the item is, the higher up it is in the order. From user perspective, this provides them with a more holistic picture of the business.

The notes are grouped in the following five categories in the order of their relevance to ITV’s business:

iii. Operating assets and liabilities – as a logical sequence to the ‘results’ section, this section provides users with

information on how the Group has utilised the assets to generate above results and in the process how it has managed its liabilities.

Interestingly, this section starts with an analysis of ‘working capital’ explaining this key driver for the KPI – ‘profit to cash’ conversion as well as its importance to Group’s business. iv. Capital structure and financing costs – once users are through the analyses of results and assets, they are likely to look for how the company is being financed. That is how this note has been ordered. v. Other notes – all other items which, in management’s view, are relevant to the business but does not warrant the same prominence as items included above are included here.

For example, revenue recognition policy sits straight in the revenue note making it easy for users to see the policy side by side with the reported revenue amount and compare the policy with its application in the same page. In addition, the policy clearly states at which point revenue gets recognised for each class of revenue. As an example, advertising revenue is recognised on ‘transmission or display’ implying risks and rewards are considered to have transferred at that stage. Furthermore, this policy also clarifies which class of revenue is reported under which segment for segment reporting purpose.

Another boilerplate breaker is the use of plain English. For example, trade receivables policy states ‘trade receivables are recognised initially at the value of the invoice sent to the customer and subsequently at the amounts considered recoverable’. This avoids using accounting jargons like ‘fair value’ and ‘amortised cost’ which may be difficult for general users to understand. Same goes with PPE note which explains in plain English the measurement of PPE and the concept of depreciation.

In summary, the exciting look and feel, the sleek grouping of notes, better placement of policies with relevant notes, identification of key accounting requirements (i.e. recognition and measurement) with entity specific events, and use of plain English definitely help users to connect the dots better to understand the business.

Are regulators on-board?

Naturally, we will have questions in our mind – are these non-standard financials and disclosures going to be accepted by regulators?

Yes, the ITV financials were well received by UK FRC, and other stakeholders including shareholders, financiers, analysts, advisers etc.

The UK regulator – FRC – is actively pursuing less clutter as part of its surveillance activity. The Australian regulator, ASIC (Australian Securities and Investments Commission), said, ‘ASIC does not pursue immaterial disclosures that may add unnecessary clutter to financial reports’. Regulators in other jurisdictions are also looking at it positively. By the time FASB and IASB finalise their disclosure projects, all regulators will get on-board.

Less is more!

All the talk around disclosure overload or disclosure problem is perhaps summarised in the following remark made by the IASB Chairman Hans Hoogervorst:

“... it can be better to exclude nonmaterial disclosures. Too much detail can make the material information more difficult to understand— so companies should proactively reduce the clutter! In other words, less is often more”.

The ITV and IASB financials are important ground-breaking examples for preparers and others to follow in providing more relevant information to users by saying less. Other preparers now have to play their part to make that wide-ranging.

Source and useful hyperlinks: • IASB Exposure Draft – Disclosure Initiative (http://www.ifrs.org/Alerts/Project Update/Pages/IASB-publishes-pro posals-as-part-of-Disclosure-Initiat ive-March-2014.aspx) • IASB Discussion Paper - Review of the Conceptual Framework for Financial Reporting • IAS 1 Presentation of Financial Statements • Breaking the boilerplate speech

by Hans Hoogervorst, June 2013 • UK Financial Reporting Council – Cutting Clutter Discussion Paper 2011 (https://www.frc.org.uk/ASB.aspx) • ITV Annual Report 2013 (http://ar2013.itvplc.com/site-esse ntials/downloads/itv-plc-annual-re port-and-accounts-2013)

The Author is Manager, KPMG 10 Shelly St, Sydney NSW 2000 Australia

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c) Accounting policies This is where the ITV has broken the boilerplate. Instead of traditional accounting policy note at the beginning of disclosures, they have located each accounting policy along with the relevant note (policies which are more general and applicable at financial statements as a whole are included in the basis of preparation section, e.g. going concern, consolidation etc).

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Recent Changes in the Commonly Used IAS/IFRS Md. Sarwar Hossen FCA, FCMA

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Abstract

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Companies in Bangladesh are trying to follow IAS and IFRS but many a times they cannot keep tuned with the recent changes in IAS and IFRS. The title of Statement of Comprehensive Income (SOCI), which was earlier named as Income Statement, has now been changed as Statement of Profit or Loss and Other Comprehensive Income (SOPLOCI) with changes in the presentatio n of OCI items based on the criterion “ recycle” or “ never be recycled”. There are circumstances when there will be two comparative figures in the case of Statement of Financial Position (SOFP).The omission of the “corridor approach” in the case of pension accounting under IAS 19 and the forthcoming changes in the case of lease accounting and the proposed amendments to IAS 37 have been dealt in the this article. There have been also changes in other IAS/IFRS, particularly in the case of group accounting, but the scope of this article has restricted only with the most commonly used IAS/IFRS.

Introduction What prompted me to write this article is that a few days back while skimming through one of the national dailies of the country, extract of un-audited half

yearly financials of one of the listed pharmaceuticals companies published in the dailies caught sight of me and I found in utter dismay, that old title of one of the components of the financials had been used and the presentation of the items contained in the OCI and their classification within OCI had not be done though the new requirements had been issued in June 2011 with effective for annual periods beginning on or after 1 July 2012. The financials published in compliance with the requirements of Bangladesh Securities and Exchange Commission (BSEC) are one the leading companies of the pharmaceutical sector and are duly authenticated as per section 189 of the Companies Act 1994. This small incidence stirred me and out of my feelings that professional development is a cumulative and continuous process I realized that many of our professional colleagues qualified much earlier or later get hardly any time to keep oneself abreast with the latest changes in the financial reporting framework. Time constraint is a reality to all. This article tries to give an overview of the recent changes in the International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS), particularly the changes which are very commonly and frequently used in the case of financial reporting requirements of the companies in Bangladesh.

The recent changes, which statement of comprehensive income are commonly used, in IAS has been changed to Statement of Profit or Loss and Other and IFRS i) Changes of title of components of financial statement under IAS 1: The title of the components of financial statement has been changed, particularly the Original Balance Sheet Income statement Cash Flow Statement

Comprehensive Income. Though, the new titles are not mandatory to use, if anyone component is titled with the new one, the other components should be designated with new titles.

The three main components of financial statement under IAS 1 are:

TO DRIVE AN ORGANIZATION TRADITIONALLY INVESTING IN A TRADITIONAL BUSINESS IS SPONSORSHIP, NOT ENTREPRENEURSHIP. ENTREPRENEURS MUST

Revised (2008) Statement of Financial Position Statement of Comprehensive Income

Revised (2011) Statement of Financial Position

Remarks Changed once

Statement of Profit or Loss and Other Comprehensive Income

Major change

Statement of Cash Flow Statement

Statement of Cash Flow Statement

Changed once

HAVE A NEW OF INNOVATION ON PRODUCT DESIGNING OR NEW MARKET PENETRATING AND CREATION, OR GAINING A COMPETITIVE ADVANTAGE THROUGH PRODUCT AND MARKET

Non owner changes in equity (known as comprehensive income) which include profit or loss for the period and non-owner transactions recognized directly in equity are presented in the Statement of Profit or Loss and Other Comprehensive Income (SOPLOCI), which can either be presented in a single Statement of Profit or Loss and Other Comprehensive Income or in two consecutive statements- the first one displaying the components of profit or loss for the period plus a second statement beginning with the

profit/loss and displaying the components of other comprehensive income.

In 2011, there have been changes in the presentation of the components of other comprehensive income. Entities are required to group items presented in the OCI part on the basis of whether they would be reclassified to (recycled through) profit or loss at a later date when certain conditions are met or the items are derecognized. Here, “recycle” means that they will increase/decrease the profit or loss of the year of derecognition and “not recycle” means that they will directly increase/decrease retained earnings of the year of derecognition, not the profit or loss. OCI part of the SOPLOCI is to be presented as follows:

LEADERSHIP.

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ii) Changes in presentation of components Other Comprehensive Income in the SOPLOCI

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Elements of financial statements

CY (PC)

1. Profit/loss for the year 2.Ot her Comprehensive Income A. Items that will not be reclassified subsequently to profit or loss i. Gains on property revaluation (IAS 16 and IAS 38) ii. Actuarial gains/losses ( IAS 19) iii.Gains or l osses in remeasurement of AFS financial assets(IFRS 9) iv. Share of gain or losses on property revaluation of associates (IAS 28) v. Income tax relating to items that will not be reclassified* B. Items that ma y be reclassified subsequently to profit or loss: i. Exchange difference on translating foreign operations ( IAS 21) ii. Effective portion of gains or losses of cash flow hedges ( IAS 39)

XXX

Comparative (PC) XXX

XXX XXX XXX

XXX XXX XXX

XXX

XXX

-XXX

-XXX

XXX XXX

XXX XXX

-XXX XXX XXX

-XXX XXX XXX

iii. Income tax relatin g to items that may be reclassified* Other Comprehensive Income for the year, net of tax ( A+B) Total Comprehensive Income for the year (1+2)

*The tax element of components of OCI could be presented in two ways: a single aggregate figure as shown above in which case, the components are shown before tax; or individual component of the OCI as net of related tax.

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The above presentation of OCI is effective for annual periods beginning on of after 1 July 2012.

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iii) Presentation of three Statement of Financial Position In fact, this is not a new requirement rather it was effective since 2008 but not commonly practiced in Bangladesh The requirement is that, under the certain circumstance, two comparative figures are to be given in the comparative part of statement of financial position-one at the year ending date of last accounting year (the usual one) and the other –at the beginning date of last year. These three balance sheet figures are to be given when an entity: a. Retrospectively applies an accounting policy;

b. Retrospective restates items in the financial statement; or c. Reclassifies items in the financial statement In effect, this will result in the presentation of three statements of financial position when there is a prior period adjustment.

Mention may be made here, that the requirement of three statements is only for the SOFP not for other components of financials like SOPLOCI. For example, an entity with any one of the above circumstances, is presenting its financials for the year ended 31 December 20X4, then in the comparative parts of the SOFP, there will be two figures-one as at 31 December 20X3 and the other as at 1 January 20X3. There will be only one comparative figure in the SOPLOCI -as at 31 December 20X3.

Changes in the accounting treatment of pension accounting under IAS 19: There have been some radical changes in pension accounting,

particularly the accounting treatment of actuarial gains and losses (the new term of “actuarial gains or losses” is “ remeasurement gains or losses” and accounting treatment as well as the calculation of interest cost of the defined benefit obligation and expected return on the plan assets. The IASB published the revised version of IAS 19 in 2011 which is effective for annual periods beginning on or after 1 January 2013 with usual permission of earlier application.

In the earlier version of IAS 19, there were predominantly three but in mention four, methods of recognition of actuarial gains or losses, out of which two methods ensure immediate recognition- (i) immediate recognition in the profit or loss and (ii) immediate recognition in the OCI and the two others ensure deferral recognition- (iii) 10% corridor method and in mention (iv) any other systematic method resulting in faster recognition of actuarial gains or losses.

The revised version of IAS 19, allows only the ‘immediate recognition to OCI”. The changes

Earlier, different rate of interest was used to calculate the interest on the plan assets and plan obligation and also recorded separately in profit or loss as interest income and interest cost.

The revised version requires that same rate is to be used for calculating the interest on both the plan assets and plan obligation and the net interest is to be recognized in the profit of loss.

There has also been changes in the accounting treatment of past service cost. Earlier, the accounting treatment considers the issue of vesting and not vesting. Only vested past service costs were recognized in the profit or loss, and the unvested benefits were deferred and spread over the remaining service life.

The revised standard requires that all past service cost, whether vested or not vested, is to be recognized in the period of plant amendment.

The term “ actuarial gains of losses” has now been replaced by “remeasurement gains or losses”.

As per the new requirement, the remeasurement gains or losses are recognized immediately in the other comprehensive income and not recycled to profit or loss.

Proposed amendments to IAS 37 In June 2005 an Exposure Draft was issued, which are supplemented by another

Exposure Draft in January 2010. A full replacement of IAS 37 is expected with the following major changes a. The Standard would be renamed “Liabilities” and be extended to include all liabilities not covered by other Standards. Liability is defined as a liability other than a liability defined in IAS 32. b. The terms contingent liability and contingent asset would be eliminated. The term ‘contingency’ will be used to refer to uncertainty about the amount that will be required to settle a liability rather than uncertainty about whether a liability exists and in the case of assets, the amount of the future economic benefits embodied in an assets rather than uncertainty about whether an asset exists c. Expected values would be used, whether measuring a single obligation of a population of items The most obvious change is that the term “provision” is no longer used; instead it is proposed that the term “liability” is used.

Proposed changes in the case of Lease accounting: IAS 17 The IASB has decided to undertake a leasing project with the objective of developing a single method of accounting for leases that would not rely in the distinction between operating and finance lease.

The present accounting treatment of lease based on the distinction of finance lease and operating lease has a considerable impact on the financial statements, most notably on the indebtedness, gearing ratios, ROCE and interest cover. It is argued that the current

treatment of operating lease is inconsistent with the definitions of assets and liabilities in the IASB’s Conceptual Framework.

There have been proposal that non cancellable operating leases should be capitalized as finance lease. The main changes, which would affect both lessees and lessors unless otherwise affected: a. The current IAS 17 model of classification of leases would cease to exist b. Lease would no longer be “off balance sheet items” in lessee’s books of accounts rather an asset and a liability is to be required for all leases c. The lease rental, in the case of existing type of operating lease, would be replaced with amortization expense and interest expense. d. The lease liability would include estimates of contingent rentals, residual value guarantees, and term option penalties. An expected outcome approach would be used. e. Rentals during renewal periods would be included as part of the lease liability on the basis of the longest possible lease term that is more likely to occur than not f. If the facts or circumstances indicate that there will be a significant changes in the lease payments and renewal periods, then the estimates of these must be revised. g. There will be two accounting models for the lessor- (i) Performance obligation approach- this is used by the lessors who retain exposure to significant risks or benefits associated with the underlying assets and (ii) Derecognition approach-this is used by the

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is done envisaging improved comparability between companies and elimination of some of the anomalies where the effect of unrecognized actuarial gains and losses and unrecognized past service cost could turn deficit into surplus and thus window dressing was possible to gauge the books of accounts.

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lessor who do not retain exposure to the significant risks or benefits associated with the underlying assets.

Conclusion

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Professional competence and due care is one of the five fundamental principles of the professional accountants, either in service or in practice.

Attainment as well as maintenance of professional competence and use of them in area of work is the spirit of the Code of Ethics. The profession demands that the accountant provides up to date service to the clients or the employer, as the case may be.

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Bibliography a. Corporate Reporting, The Institute of Chartered Accountants in England and Wales, First edition 2013, Polestar Wheatons. UK b. www.icaew.com c. International Financial Reporting Standards (IFRSs)-2013-14, including International Accounting Standards ( IASs) and Interpretations-Part One and Part Two, International Accounting Standards Board ( IASB), UK d. www.iasb.org e. WILEY IFRS, Interpretation and Application of International

Accounting and Financial Reporting Standards, Barry J. Epstein and Abbas Ali Mirza, John Wiley & Sons Inc. USA f. www.willey.com/go/ifrs g. Financial Reporting, Paper F7 INT/UK, The Association of Chartered Certified Accountants, Kaplan Publishing UK, 2014-15 h. www.iasplus.com i. Changes to the Presentation of other Comprehensive Income-amendments to IAS 1, IFRS Developments, Issue 7/ June 2011, ey/com/IFRS The Author is a Fellow Member of ICAB