Term Paper on Financial Position of

Investment Corporation of Bangladesh

Course Code: EMBA-503
Course Title: Managerial Finance

Submitted To:
Sheikh Abu Taher, PhD
Associate Professor
Department of Finance and Banking
Jahangirnagar University
Savar, Dhaka

Submitted By:
Jubayed Ibna Sadique
ID: 20202095
Program: EMBA
27th Batch
Session: Summer - 2020
Major: Marketing
Faculty of Business Studies
Jahangirnagar University
Savar, Dhaka
Date of Submission: 27 February 2021
 Letter of Transmittal

27 February 2021

Sheikh Abu Taher, PhD

Associate Professor,

Dept. of Finance and Banking

Jahangirnagar University

Savar, Dhaka.

Subject: Submission of term paper on Investment Corporation of Bangladesh.

Dear Sir:

It is my immense pleasure to submit my Term Paper on “Financial Position of Investment

Corporation of Bangladesh” as a requirement for completing my course Managerial Finance. I
tried to give my best effort to prepare this term paper. I also tried to focus my best work sincerely
to cover all aspects regarding the topic. I express my special gratitude to you.

I hope you will assess my term paper considering the limitations and mistakes of the study, and
sincerely believe you will find the study very interesting and innovative.

Sincerely Yours,

Jubayed Ibna Sadique

ID NO: 20202095

EMBA Program

Section – B

Faculty of Business Studies

Jahangirnagar University, Savar, Dhaka.

i
 Letter of Declaration

I, Jubayed Ibna Sadique, a student of EMBA program major in Marketing, Jahangirnagar

University, do hereby solemnly declare that the work presented in this term paper has been
carried out by me and has not been previously submitted to any other University/ College/
Organization for an academic qualification / certificate/ diploma or degree.

The information I have presented does not breach any existing copyright. Different sources have
been used as supportive tools for preparing the term paper. This term paper has been generated for
the academic purpose exclusively not for profit seeking.

Jubayed Ibna Sadique

ID NO: 20202095

EMBA Program

Section – B

Batch – 27

Faculty of Business Studies

Jahangirnagar University, Savar, Dhaka.

ii
 Letter of Acceptance

This is to certify that, Jubayed Ibna Sadique, ID NO: 20202095 has been given with the topic of
“Financial position of Investment Corporation of Bangladesh” as a partial fulfillment for the
course of Managerial Finance. He has been reviewed all the relevant literature and collect
secondary data.

Now I am convinced to permit his work. I am also certifying that; the term paper is in an original
one and has not been submitted elsewhere previously for publication in any form. He is sincere,
honest and hardworking. I hope that this will contribute to his career.

I wish him all the success in his life.

Sheikh Abu Taher, PhD

Associate Professor,

Dept. of Finance and Banking

Jahangirnagar University

Savar, Dhaka.

iii
 Acknowledgement

At first, I would like to express my gratitude to Almighty Allah who has given me opportunity to
go through the total process of write a term paper in this regard.

I am deeply indebted to a large number of people for their kind suggestion and cooperation.

I would like to express my sincere gratitude and appreciation to Sheikh Abu Taher PhD Sir,
Associate Professor, Dept. of Finance and Banking, Jahangirnagar University, who helped
me with valuable advices, guidance and necessary information. He guided me in the right direction
that helped me valuable advices, guidance, and necessary information. He provided overall
guidance, support and writing of this term paper. He carefully reviewed the draft financial data
and made valuable comments and suggestions that were very helpful for restructuring and
finalizing the term paper. I acknowledge his contribution and thankful to him for his great
kindness.

Special recognition is due to those friends and classmates who provided their individual assistance
and advice in preparing this report.

iv
 Executive Summary

There are many different categories of institutions, which play a vital role for changing the social
structure and for the economic development of our country. Investment Corporation of Bangladesh
is one of the most important institutions of them. Investment Corporation of Bangladesh is playing
an important role to build, nurture & to enhance of capital market for the economic growth of
Bangladesh. Investment Corporation of Bangladesh acts as an investment banker, market maker
& portfolio manager. As a banking financial institution, it receives term deposits and provides
margin loan. As a development financial institution, it provides term loan to finance equity gap,
provides working capital. As a market maker it issues unit certificate, underwriting securities. It
also issues and manages mutual funds. That is why it is very much important for us to know about
practical functions of Investment Corporation of Bangladesh which are playing significant roles
for the economic development of Bangladesh.

The basis of my report is financial analysis of Investment Corporation of Bangladesh’s

performance through ratios and plotting in the chart and graph. I focus on Investment Corporation
of Bangladesh’s last six years financial performance by evaluating its liquidity, solvency and
profitability position. As the last phase of my term paper I present my major findings and give
recommendation which I thought important.

v
 Acronyms

BB: Bangladesh Bank

ICB: Investment Corporation of Bangladesh

ADB: Asian Development Bank

IMF: International Monetary Fund

CML: Capital Management Limited

AMCL: Asset Management Company Limited

STCL: Security Trading Company Limited

SEC: Security & Exchange Commission

DSE: Dhaka Stock Exchange

BSB: Bureau of Statistic of Bangladesh

MF: Mutual Fund

UF: Unit Fund

GM: General Manager

DGM: Deputy General Manager

MIS: Management Information System

GDP: Gross Domestic Product

DSEGN: Dhaka Stock Exchange General Index

vi
 Table of Contents

SL. No. Particular Page

Chapter -1: Introduction
1.1 Introduction 2
1.2 Origin of the term paper 2
1.3 Scope of the term paper 2
1.4 Objectives of the term paper 2-3
1.5 Limitation of the term paper 3
1.6 Data Collection 3
1.7 Data Analysis 3
Chapter -2: Organizational Overview
2.1 Background of Investment Corporation of Bangladesh 5
2.2 Objectives of Investment Corporation of Bangladesh 5
2.3 Business Policy of Investment Corporation of Bangladesh 5-6
2.4 Function of Investment Corporation of Bangladesh 7
2.5 Vision of Investment Corporation of Bangladesh 7
2.6 Mission of Investment Corporation of Bangladesh 7-8
2.7 Product and Services of Investment Corporation of Bangladesh 8-9
2.8 Development Activities of Investment Corporation of 9
Bangladesh
Chapter -3: Data Analysis of ICB
3.1 Total Assets & Properties 11
3.2 Current Liabilities 11-12
3.3 Current Assets 12
3.4 Total Shareholders’ Equity & Liabilities 12-13
3.5 Total Liabilities 13
3.6 Shareholders’ Equity 14
3.7 Current Ratio 14-15
3.8 Debt Equity Ratio 15

vii
3.9 Debt to Total Asset Ratio 15-16
3.10 EBIT 16-17
3.11 EPS 17
3.12 Book Value Per Share 17-18
3.13 Price Earning Ratio 18-19
3.14 Working Capital 19
3.15 Cash Ratio 19-20
3.16 NOCFPS 20
Chapter -4: Findings & Recommendation
4.1 Findings 22
4.2 Recommendation 22-23
Chapter -5: Conclusion
5.1 Conclusion 25

viii
 Chapter 1
Introduction

1
1.1 Introduction

As a student of Business Administration everyone has to conduct a term paper or

assignment. The main purpose of the term paper or assignment is to expose the
students to the real-world situation. This term paper is done as a partial requirement
for fulfilling the course Managerial Finance. Practical knowledge is fundamental for
the application of theoretical intelligence. The term paper is the evidence of effort
and harmony between practical and theoretical knowledge.

1.2 Origin of the term paper

It is said that without theory practice is blind and without practice theory is
meaningless. An internship program is designed to bridge the gap between the
theoretical knowledge and real-life application. A country is financially rich when it
has modern financial stability and industrial development of the country. Due to
Globalization and Technological revolution, the banking business has become very
competitive now a days. All banks are competing to give effective real time service
to their customers. For giving friendly service to the customers they need
experienced and well-educated workforce. For fulfilling that requirement, I was
assigned to prepare a report on “Financial Position of Investment Corporation of
Bangladesh”.

1.3 Scope of the term paper

My course teacher assigns me the topic “Financial Position of Investment

Corporation of Bangladesh”. I try my best to make my term paper based on the
topic.

This report covers the financial data of ICB from 2015 to 2020.

1.4 Objectives of the term paper

2
The main objective of education is to acquire the knowledge. To acquire the
knowledge ultimately, we must do some practical applications in addition to
theoretical knowledge. Thus, the following are the important objectives:

I. To know the activities of ICB.

II. To know how ICB play an important role in the capital market.
III. To know the performance of ICB by calculating different income statement,
balance sheet, cashflow statement, ratio and portfolio analysis.
IV. To gain in-depth knowledge on merchant banking & capital market of
Bangladesh.

1.5 Limitation of the term paper

The main limitation was time frame for collecting the necessary data. The other
limitation was lack of information.

1.6 Data collection

To make my term paper standard and presentable I used secondary source of

information. I took the information specially from annual report of ICB, documents
of ICB and ICB website.

1.7 Data Analysis

For the analysis purpose time series data has been used. All performance based on
ICB previous six years data. The research is based on quantitative study. The main
focus of the study is analyzing financial position of ICB based on the last six years
financial information. The liquidity indicator, the profitability indicator, the
solvency indicator, equity indicator has taken to evaluate its performance and
prospect.

3
 Chapter 2
Organizational
Overview

4
2.1 Background of ICB

ICB is an investment bank. It generally invests in the public sectors. It mobilizes

funds from surplus economic unit to the deficit one. As a development financial
institution, it provides term loan to finance equity gap, provides working capital. As
a market maker it issues unit certificate, underwrites securities, manages issuance of
securities. It also issues and manage mutual funds.

The Investment Corporation of Bangladesh was established on October 1, 1976

under Investment Corporation of Bangladesh Ordinance to encourage and broaden
the of investment, develop the capital market, stock trading, portfolio management,
operating mutual fund both open ended and close ended. The establishment of
Investment Corporation of Bangladesh is a major step in a series of measures
undertaken by the government in the past years to accelerate the pace of
industrialization.

2.2 Objectives of ICB

Every organization has some objectives to reach its organizational goal. Investment
Corporation of Bangladesh is not exception of that. The main objective of ICB are
as follows:

• To encourage and broaden the base of investment.

• To mobilize savings.
• To develop the capital market.
• To promote an establish for business development.
• To provide for matters ancillary thereto

2.3 Business policy of ICB

5
The corporation has adopted a realistic business policy framework within which its
operation is conducted. The corporation, in its operation, acts on commercial
consideration with regard to the interest of industry and commerce, investment
climate, capital market, depositors, investors and to the public interest generally.

The operational policies of the corporation are as follows:

• Underwriting/ bridge finance, debenture finance and other assistance is

provided only for industrial projects/ organizations/ institutions which are
economically feasible, financially sound and socially desirable and broaden
the base of investment.
• Assistance is provided to that enterprises/ institutions which is in line with the
development plans of government. In case of the industrial project’s
preference is given to project oriented, import substitution and to projects
mainly based on local raw materials and those be located in the less developed
areas of the country.
• Maintains the policy of diversification, as far as possible, both with regards to
the location and types of industries.
• In accordance with the normal business practices adequate security is obtained
to cover bridging debentures loan.
• The corporation does not generally seek any controlling interest in any of the
enterprises financed by it except when that becomes necessary an expedient
in the interest of the corporation and other shareholders.
• ICB will liquidate its underwriting holdings when they mature to declare
dividends and show capital appreciation. The corporation will not be guided
exclusively by consideration of profit. It will keep the larger interest of the
market uppermost and will unload its holdings under conditions that do not
disturb the stability of the capital market.

6
2.4 Functions of ICB

In order to achieve its objectives ICB carry out the following functions. The main
function of ICB are as follows:

i. Underwriting of initial public offerings of shares and debentures.

ii. Underwriting of right issue of shares.
iii. Direct purchase of shares and debentures
iv. Including placement and equity participation.
v. Providing lease finance singly or by syndicate.
vi. Managing investors accounts.
vii. Managing mutual fund and unit fund.
viii. Operating of the stock exchange.
ix. Providing investment counsel to investors and issuers.
x. Participating in government divestment program.
xi. Participating in financing of joint venture projects.
xii. Introducing new business products according to market demand.

Dealing with other matters, this is related to capital market operation.

2.5 Vision of ICB

Continue to be the leading, responsible and environment friendly financial

institution operating in such a way that fellow competitors and the society watch,
acknowledge, admire and emulate ICB as a successful and model organization in the
industry.

2.6 Mission of ICB

a) Transforming corporation into a responsible institution, a financial architect

and an innovative solution provider and performance leader.

7
 b) Being a responsible institution created by law and act in accordance with the
mandates ICB’s ordinance for fostering rapid growth of Bangladesh economy.
c) Being a financial architect and strive to establish a benchmark of values,
attitudes, behavior and commitments with earnest endeavors in generating
optimum profits and growth for shareholders by efficient use of resources,
solutions to foster mobilization of all domestic and NRB savings into potential
investment.
d) Being a performance leader and lead by example.

2.7 Products and services of ICB

A. Capital market segment

I. Advance against equity, private equity, placement of shares.
II. Advance against share repurchase arrangement.
III. Advance against ICB unit & Bangladesh fund certificates.
IV. Managing margin loan accounts, unit and mutual funds.
V. Stock market operation.
VI. Portfolio management.
VII. Investing in preference shares.
VIII. Investing in secondary market.
IX. Agent for divestment of govt. shares.
X. Mergers & acquisition.

B. Infrastructure segment

▪ Equity and entrepreneurship fund/ venture capital financing.

▪ Debenture financing.
▪ Lease financing.

C. Money market segment

8
 1) Dealing in money market instruments: subordinated, zero coupon bond, term
deposit receipt.
2) Fixed deposit receipt.
3) Issuing bank guarantee.
4) Consumer credit scheme and corporate finance advice.

2.8 Development activities of ICB

A. Equity support through consortium arrangement: ICB invests in different

companies through equity participation singly/ under consortium arrangement by
different banks and financial institutions.

B. Counseling to the government: In case of govt. divestment program ICB

provides professional & financial advice through analyzing the companies to be
privatized and the attitude the prospective buyers. Government enterprises intending
to go public often seek professional financial advice on corporate restructuring and
reengineering, ICB through its expertise provides such advice.

C. Term deposit: ICB receives deposits from individuals / institutions offerings

attractive and negotiable interest rate which helps to mobilize savings for profitable
investment in securities.

D. Disinvestment program: ICB is actively associated with disinvestment process.

With a view to off-loading of govt. shareholding through the stock market ICB has
been entrusted with the responsibility of selling govt. owned shares of different listed
companies.

E. EEE: ICB capital management limited acts as project appraising institute for
equity participation of EEE unit of Bangladesh Bank.

9
 Chapter 3
Data Analysis of ICB

10
3.1 Total assets & properties

Total Assets & Properties 201,156,768,881.00

250,000,000,000.00
196,570,362,762.00

200,000,000,000.00 171,096,209,229.00
175,382,677,593.00

150,000,000,000.00 133,771,872,030.00

100,000,000,000.00 111,939,871,520.00

50,000,000,000.00

0.00
1

2015 2016 2017 2018 2019 2020

According to the balance sheet of Investment Corporation of Bangladesh total assets

& properties was 111,939,871,520.00 in 2015 and its continuously increasing in
2016 to 2020. Though in 2018 it become little decrease in amount of
171,096,209,229.00. This graph shows that all assets & properties are in a
satisfactory level and this is good for the company.

3.2 Current liabilities

Current Liabilities
140,000,000,000.00 113,877,509,501.00 118,921,930,394.00
111,939,873,535.00
120,000,000,000.00 108,409,187,915.00
100,000,000,000.00 82,664,213,429.00 119,976,790,283.00
80,000,000,000.00
60,000,000,000.00
40,000,000,000.00
20,000,000,000.00
0.00
1 2 3 4 5 6

Series1

11
Every company like Investment Corporation of Bangladesh wants to minimize the
liability. But it is difficulty to control. This graph shows that ICB tries hard to control
their current liabilities.

3.3 Current Asset

Current asset

223,879,747,070
189,958,441,945.00
185,768,355,444.00
164,529,648,996.00 2015
2016
159,649,992,385.00
2017

124,216,108,693.00 2018
2019
2020

According to this graph we see that in the year of 2015 current assets was
223,879,747,070.00. But unfortunately, in the year of 2016 to 2020 current assets
was decreasing.

3.4 Total shareholders’ equity & liabilities

Total shareholders’ equity & liabilities refers the total liability of the company.
According to this graph we can see that in the year of 2015 total shareholders’ equity
& liabilities was 335,819,620,605.00. But in the year of 2016 to 2020 it decreases.

12
 Total Shareholders equity & liabilities

201,156,703,180.00
196,570,298,276.00

171,096,155,605.00
335,819,620,605.00

350,000,000,000.00
175,382,621,999.00
300,000,000,000.00
250,000,000,000.00 2020
133,771,823,915.00 2019
200,000,000,000.00
2018
150,000,000,000.00
2017
100,000,000,000.00
2016
50,000,000,000.00
2015
0.00
1

3.5 Total liability

Total liabilities
180,000,000,000.00
160,000,000,000.00 157,563,033,619.00
153,528,671,019.00
140,000,000,000.00
120,000,000,000.00 133,047,640,709.00

100,000,000,000.00 126,113,989,128.00

80,000,000,000.00 96,243,231,874.00
60,000,000,000.00
68,149,843,938.00
40,000,000,000.00
20,000,000,000.00
0.00
1

2015 2016 2017 2018 2019 2020

Total liability refers to the current liability and non-current liability. This graph
shows that in the year of 2015 total liability was 68,149,843,938.00. After this from
the year of 2016 to 2020 it increasing continuously.

13
3.6 Shareholders’ equity

SHAREHOLDERS EQUITY
11,900,364,940.00
14,743,373,897.00
11,213,698,697.00

14,067,216,763.00

12,793,294,618.00
15,000,000,000.00
13,632,545,740.00
2020
10,000,000,000.00 2019
2018
5,000,000,000.00 2017
2016
2015
0.00
1

According to the balance sheet of Investment Corporation of Bangladesh

shareholders equity was 13,632,545,740.00 in 2015. It decreases in the year of 2016
as 12,793,294,618.00. Again, it increases in 2017 by the amount of
14,067,216,763.00. In the year of 2018 the amount was 11,213,698,697.00 for 2019
amount was 14,743,373,897.00 and in 2020 the amount was 11,900,364,940.00.

3.7 Current Ratio

Current Ratio
1.597337357 2

1.548369105
1.502658811

1.40
1.517672553

2015 2016 2017 2018 2019 2020

14
The current ratio is a liquidity ratio that measures a company’s ability to pay short
term obligations or those due within one year. It tells investors and analysis how a
company can maximize the current assets on its balance sheet to satisfy its current
debt and other payables.

3.8 Debt equity ratio

Debt Equity Ratio

4.999054853

13.24
7.52

8.97
13.69

9.02

2015 2016 2017 2018 2019 2020

The debt equity ratio is calculated by dividing a company’s total liabilities by its
shareholder equity. These numbers are available on the balance sheet of a company’s
financial statement. The ratio is used to evaluate a company’s financial leverage.
The debt equity ratio is an important metric used in corporate finance. It is a measure
of the degree to which a company is financing its operations through debt versus
wholly-owned funds. Most specifically, it reflects the ability of shareholder equity
to cover all outstanding debts in the event of a business downturn. The debt equity
ratio is a particular type of gearing ratio.

3.9 Debt to total asset ratio

15
The debt to total asset ratio is a leverage ratio that defines the total amount of debt
relative to asset owned by a company. Using this metric, analysts can compare one
company’s leverage with that of other companies in the same industry. This
information can reflect how financially stable a company is. The higher the degree
of leverage and consequently the higher the risk of investing in that company.

Debt to Total Asset Ratio

0.783 0.608807595

0.72
0.781

0.719
0.777

2015 2016 2017 2018 2019 2020

3.10 EBIT

EBIT

6,891,660,385 6,674,463,893.00

5,411,419,428.00

4,324,483,975.00

1,803,073,088.00

1,842,485,457.00

2015 2016 2017 2018 2019 2020

Series1 Series2

16
Earning before interest and tax (EBIT) measures a company’s financial
performance. It is calculated of a firms earning before interest and tax are taken out.
It shows a company’s earnings with the COGS, depreciation, general and
administrative expenses and other operating expenses deducted from gross sales.

3.11 EPS

EPS
0.86 0.74

6.94

6.27

5.25

6.95

2015 2016 2017 2018 2019 2020

Earning per share (EPS) is calculated as a company’s profit divided by the

outstanding shares of its common stock. The resulting number serves as an indicator
of a company’s profitability. It is common for a company to report EPS that is
adjusted for extraordinary items and potential share dilution. The higher a
company’s EPS, the more profitable it is considered to be.

3.12 Book value per share

Book value per share is the ratio of equity available to common shareholders divided
by the number of outstanding shares. The figure represents the minimum value of a
company’s equity and measures the book value of a firm on per share.

17
 Book Value Per Share

56.80 69.20

56.08
59.30

57.06
74.15

2015 2016 2017 2018 2019 2020

3.13 Price earning ratio

Price Earning Ratio

9.971181556
11.2952381
10.66906475
9.100478469
76.75675676

65.20930233

2015 2016 2017 2018 2019 2020

The price earning ratio is the ratio for valuing a company’s that measures its current
share price relative to its per share earing. The price to earnings ratio is also
sometimes known as the price multiple or the earnings multiple. Price earning ratios
are used by investors and analysts to determine the relative value of a company’s
shares in an apples to apples comparison. It can also be used to compare a company

18
against its own historical record or to compare aggregate markets against one another
or over time.

3.14 Working capital

Working Capital
2021 80,000,000,000
71,036,511,551.00
2020 70,000,000,000
65,791,565,161.00
2019 56,120,461,081.00 60,000,000,000
47,626,485,401
2018
50,000,000,000
2017 45,772,482,884
41,551,895,264.00 40,000,000,000
2016 2020
2019 30,000,000,000
2015 2018
2017 20,000,000,000
2014 2016
2015
2013 10,000,000,000
2012 0
1 2 3 4 5 6

Series1 Series2

Working capital also known as net working capital is the difference between a
company’s current assets such as cash, accounts receivable and inventories of raw
materials and finished goods and its current liabilities such as accounts payable.

3.15 Cash ratio

Cash flow per share ratio is calculated after tax earning plus depreciation on a per
share basis that functions as a firms financial strength. Many financial analysts place
more emphasis on cash flow per share than om earning per share can be manipulated
cash flow per share is more difficult to alter, resulting in what may be a more
accurate value of the strength and sustainability of a particular business model.

19
 Cash Ratio
0.095
0.17828353

0.154

0.169

0.171

0.223

2015 2016 2017 2018 2019 2020

3.16 NOCFPS

Net operating cash flow per share is another type of ratio which explain the financial
condition of a company.

0.30
NOCFPS
2.78 1.34

15.70

51.94
43.38

2015 2016 2017 2018 2019 2020

20
 Chapter 4
Findings &
Recommendation

21
4.1 Findings

ICB operate in the capital market with skilled and experience financial experts. The
credit of its good performance and reputation solely to its professionals. All of its
security trading and investment decision is taken by professional management team.
Especially ICB mutual funds always have investor confidence.

Studying the portfolio of mutual funds I have some findings that might have impact
on investor confidence. All the mutual funds follow the same patter in their
respective income statement. Their secured income and dividend income are very
low compared to capital gain. The dividends of mutual funds are different though all
mutual funds maintain same type of portfolio. The general reserve and retained
earnings of all mutual funds are substantial compare to other financial institute in
the market.

4.2 Recommendation

Although Investment Corporation of Bangladesh is the top performing company in

the merchant banking. I have some suggestion for Investment Corporation of
Bangladesh to improve its performance be more efficient.

Investment Corporation of Bangladesh has skilled and experience fund manager but
they perform only on security trading. The trade monitors and stock fraud
monitoring tram of Investment Corporation of Bangladesh is lac of human resources.
Investment Corporation of Bangladesh should enroll more human capital on those
fields.

The portfolio categories of almost all the Investment Corporation of Bangladesh

mutual funds are almost same. They should have different portfolio category so both
high risk and low risk investor will be interested to invest.

22
The first Investment Corporation of Bangladesh mutual fund provides high return
comparing capital gain but other does not do that. To attract more investor
Investment Corporation of Bangladesh have to change its policy.

Investment Corporation of Bangladesh should have a strong IT setup and the

network field should have to be developed.

23
 Chapter 5
Conclusion

24
5.1 Conclusion

This financial analysis paper explores the financial statements of Investment

Corporation of Bangladesh. In addition to analyzing financial statement, the paper
discusses relationships between financial statements, how financial statements differ
in industries, how different measurement conventions affect presentation and
conducting financial ratios. Analyzing the previous concepts and financial position.
It is imperative that constant monitoring of financial statement is conducted.
Organizations that conduct analyst allow for their operation to have a snap shot view
of the overall performance and give management a chance to make sound financial
decision.

25
Appendix
Investment Corporation of Bangladesh

Balance Sheet

For the year 2015 to 2020

Particulars 2015 2016 2017 2018 2019 2020

10,443,269,0 14,003,221,5 24,188,945,3 19,482,054,8 18,423,646,3 11,249,625,7

Cash 44.00 04.00 18.00 18.00 72.00 20.00

Investment in
shares & 76,847,860,5 90,851,392,1 121,876,776, 115,202,817, 135,456,806, 145,571,800,
securities 25 31.00 226.00 097.00 976.00 375.00

442,300,000.
Government 00

Others 145,129,500,
investments 375.00

Loans and
advances/inve 18,912,101,7 19,361,495,0 18,463,927,4 24,965,120,4 31,887,902,0 33,137,015,8
stment 25.00 58.00 52.00 70.00 96.00 49.00

790,668,428. 907,090,985. 900,256,206. 901,530,414. 859,707,941. 837,117,749.

Fixed assets 00 00 00 00 00 00

4,945,971,79 8,648,672,35 9,952,772,39 10,544,686,4 9,942,299,37 10,361,209,1

Other assets 8.00 2.00 1.00 30.00 7.00 88.00

111,939,871, 133,771,872, 175,382,677, 171,096,209, 196,570,362, 201,156,768,

Total assets 520.00 030.00 593.00 229.00 762.00 881.00

Borrowing
from banks, 8,380,055,28 5,322,305,78 9,060,500,00 5,471,473,65 12,999,805,0 12,000,822,8
FI & agents 5.00 5.00 0 5.00 56.00 46.00

Deposits and
other 50,196,690,6 77,341,907,6 99,348,687,9 108,406,035, 106,976,985, 106,921,107,
accounts: 09.00 44.00 15.00 846.00 227.00 548.00

Deferred
interest 1,751,196.00 1,400,956.00 1,050,716.00 700,476.00

26
Other 9,571,346,84 13,566,617,4 17,703,750,4 19,169,430,7 19,651,880,7 22,741,103,2
liabilities 8.00 89.00 97.00 32.00 36.00 25.00

Subordinated
debt/Modarab 13,900,000,0 15,900,000,0
a bond 00.00 00.00

Total 68,149,843,9 96,243,231,8 126,113,989, 133,047,640, 153,528,671, 157,563,033,

liabilities 38.00 74.00 128.00 709.00 019.00 619.00

Shareholders’ 43,789,982,2 37,528,592,0 49,268,632,8 38,048,514,8 43,041,627,2 43,593,669,5

equity 86.00 41.00 71.00 96.00 57.00 61.00

Paid up 6,328,125,00 6,328,125,00 6,328,125,00 6,644,531,25 6,976,757,81 7,674,433,59

capital 0.00 0.00 0.00 0.00 3.00 4.00

Share 8,437,500,00 8,437,500,00 8,437,500,00 8,437,500,00 8,437,500,00 7,739,824,21

Premium 0.00 0.00 0.00 0.00 0.00 9.00

Revaluation
surplus/asset - -
revaluation 5,094,646,29 827,811,555. 6,597,983,77 947,109,433.
reserve 6.00 00 2.00 00

6,664,769,32 7,455,780,85 8,112,623,99 8,229,142,64 8,468,818,43 8,553,428,91

Other reserves 6.00 5.00 4.00 1.00 0.00 9.00

Retained
earnings/ 7,304,420,74 6,465,169,61 7,739,091,76 8,098,842,64 4,236,940,88 4,225,931,34
surplus 0.00 8 3.00 7.00 4.00 6.00

General 3,858,571,19 4,973,567,83 5,700,940,98 6,537,277,56 7,391,558,27 7,550,000,82

reserve 2.00 2.00 7.00 0.00 4.00 7.00

Reserve for
future
diminution of 6,101,949,73 4,696,260,29 6,352,367,35 1,048,330,23 7,530,051,85 7,850,050,65
securities 2.00 1.00 5.00 1.00 6.00 6.00

Minority
interest/non-
controlling
interest 45,294.00 55,594.00 53,624.00 64,486.00 65,701.00

Total
liabilities &
shareholders’ 111,939,871, 133,771,872, 175,382,677, 171,096,209, 196,570,362, 201,156,768,
equity 518.00 030.00 593.00 229.00 762.00 881.00

27
Book value
per share 69.20 59.30 74.15 57.06 56.08 56.80

Investment Corporation of Bangladesh

Income Statement

For the year 2015 to 2020

Particulars 2015 2016 2017 2018 2019 2020

Interest 2,204,506,66 1,791,253,87 2,399,056,66 3,588,580,49 3,556,776,662 3,230,376,745

income 4.00 0.00 0.00 4.00 .00 .00

Less: Interest
expenses on
deposits & 4,796,970,37 5,039,885,84 6,261,832,32 8,325,692,38 10,011,075,50 11,525,584,00
borrowings 9.00 0.00 1.00 8.00 0.00 2.00

- - - - - -
Net interest 2,592,463,71 3,248,631,97 3,862,775,66 4,737,111,89 6,454,298,838 8,295,207,257
income 5.00 0.00 1.00 4.00 .00 .00

Income from 4,978,604,95 4,668,891,24 8,147,562,43 7,980,006,54 4,635,026,726 63,376,885,02

investment 0.00 6.00 5.00 9.00 .00 3.00

Commission,
exchange & 1,592,667,71 1,517,800,75 1,771,032,86 1,701,656,00 1,528,331,564 1,321,075,961
brokerage 8.00 6.00 7.00 5.00 .00 .00

2,589,049,77 2,814,260,10 3,535,475,08 3,733,832,91 3,615,712,977 3,927,179,946

Dividend 2.00 7.00 7.00 9.00 .00 .00

Other
operating 18,756,219.0 16,226,685.0 35,113,130.0 17,401,884.0
income 0 0 0 0 12,739,484.00 16,044,827.00

Total
operating 6,586,614,94 5,768,546,82 9,626,407,85 8,695,785,46 3,337,511,913 3,345,978,545
income 4.00 4.00 8 3.00 .00 .00

Salaries,
allowances & 710,424,031. 975,470,924. 2,111,768,30 1,404,224,81 930,912,495.0 991,386,017.0
other benefits 00 00 1.00 0.00 0 0

28
Rent, taxes,
insurance, 62,846,759.0 67,549,278.0 108,802,130. 122,373,915. 135,770,673.0 140,168,342.0
electricity etc. 0 0 00 00 0 0

Legal &
professional
fees 3,077,883.00 4,737,089.00 4,698,353.00 5,089,054.00 4,705,892.00 3,576,933.00

Postage,
stamps,
telecommunic 11,127,327.0
ation etc. 6,749,791.00 0 6,494,695.00 6,661,583.00 5,824,225.00 4,855,067.00

Printing,
stationary, 26,522,950.0 31,537,997.0 29,534,913.0 29,476,159.0
advertising 0 0 0 0 25,634,491.00 23,457,452.00

Directors fees
and expenses 3,199,000.00 4,627,750.00 4,392,400.00 6,313,200.00 5,265,600.00 4,037,600.00

Audit fees 461,750.00 426,750.00 538,450.00 551,000.00 415,000.00 418,250.00

Depreciation,
repair &
maintains
expenses of 69,093,832.0 87,868,976.0 96,640,707.0 110,409,265.
FI's asset 0 0 0 00 99,851,529.00 98,887,836.00

Brokerage 98,238,982.0 103,456,943. 219,239,179. 154,403,025. 123,099,912.0 102,266,525.0

cost 0 00 00 00 0 0

Other
operating 194,580,538. 157,259,815. 152,638,345. 181,819,559. 202,959,008.0 134,439,066.0
expenses 00 00 00 00 0 0

Total
operating 1,175,195,51 1,444,062,84 2,734,747,47 2,021,321,57 1,534,438,825
expenses 6.00 9.00 3.00 0.00 .00 1,503,493,088

Profit before
provision
against loans 5,411,419,42 4,324,483,97 6,891,660,38 6,674,463,89 1,803,073,088 1,842,485,457
& advances 8.00 5.00 5.00 3.00 .00 .00

Non-operating
income 2,348,213.00 469,128.00 1,467,471.00 2,042,379.00 3,070,767.00 1,766,700.00

29
Provisions for
loans,
investment &
other
assets/specific 373,442,537. 471,011,869. 659,640,815. 577,750,223. 365,172,986.0 494,725,973.0
provision 00 00 00 00 0 0

Provision
against 246,700,000. 870,450,940. 228,065,109.0
investment 00 00 0 9,200,403.00

Provision 399,734,240. 101,433,699. 100,408,975.0

against VAT 00 00 0 89,347,065.00

25,308,685.0 10,812,176.0 14,196,568.0 228,318,607.0

Others assets 0 0 0 0 12,500,000.00

Total 373,442,537. 496,320,554. 1,316,887,23 1,563,831,43 921,965,677.0 605,773,441.0

Provision 00 00 1.00 0.00 0 0

Profit before
tax and 5,040,325,10 3,828,632,54 5,576,240,62 5,112,674,84 884,178,178.0 1,238,478,716
reserve 4.00 9.00 5.00 2.00 0 .00

645,468,054. 514,020,850. 947,068,708. 952,741,668. 288,350,170.0 672,504,828.0

Current tax 00 00 00 00 0 0

- 13,491,750.0 -
Deferred tax 1,262,298.00 9,928,304.00 0 3,356,274.00 -5,488,660.00 1,059,223.00

Provision for 646,730,352. 504,092,546. 960,560,458. 949,385,394. 282,861,510.0 673,564,051.0

tax 00 00 00 00 0 0

Net profit
after tax for 4,393,594,75 3,324,540,00 4,615,680,16 4,163,289,44 601,316,668.0 564,914,665.0
the year 2.00 3.00 7.00 8.00 0 0

EPS 6.94 5.25 6.95 6.27 0.86 0.74

30
 Investment Corporation of Bangladesh

Cash Flow Statement

For the year 2015 to 2020

Particulars 2015 2016 2017 2018 2019 2020

Interest
received/Inves
tment income 2,259,787,95 1,825,716,60 2,129,307,87 3,234,715,119. 3,413,951,56 2,908,818,46
in cash 9.00 0.00 5.00 00 7.00 9.00

Interest
payments/Prof
it paid on - - - - - -
deposits in 4,796,958,33 5,163,918,64 5,571,047,66 7,536,076,053. 9,404,109,03 8,873,236,36
cash 0.00 9.00 2.00 00 5.00 5.00

Dividend
received/Divi
dend receipts
from
investment in
shares & 2,044,538,33 3,818,087,62 3,359,467,47 3,578,226,091. 3,604,764,53 3,435,061,18
securities 0.00 1.00 0.00 00 0.00 5.00

Gain on sale 4,978,604,95 4,668,891,24 8,147,562,43 7,980,006,549. 4,635,026,72 6,376,885,02

of shares 0.00 6.00 5.00 00 6.00 3.00

Fees &
commission
receipts in 1,592,667,71 1,517,800,75 1,771,032,86 1,701,656,005. 1,528,331,56 1,262,731,68
cash 8.00 6.00 7.00 00 4.00 2.00

Cash
payments to
employees - - - - - -
(including 682,865,410. 976,830,454. 926,876,712. 2,020,862,038. 966,286,265. 1,011,213,61
directors) 00 00 00 00 00 7.00

Cash - - - - -
payments to 113,126,682. 130,303,776. 166,468,416. - 176,724,545. 310,199,810.
suppliers 00 00 00 184,853,002.00 00 00

21,104,432.0 16,695,813.0 36,580,601.0 15,771,812.0 17,795,600.0

Receipts from
0 0 0 19,405,306.00 0 0
other

31
operating
activities

Payment for
other - - - - -
operating 296,018,520. 265,344,508. 376,269,924. - 331,324,520. 240,743,191.
activities 00 00 00 342,535,784.00 00 00

Cash
generated
from
operating
activities
before
changes in
operating
assets & 5,007,734,41 5,310,794,64 8,403,288,53 7,439,682,193, 2,319,401,83 3,565,898,97
liabilities 3.00 9.00 4.00 018.00 4.00 6.00

- - - - -
Leases, Loans 938,066,485. 449,393,333. 897,567,606. 6,501,193,018. 6,922,781,62 1,249,113,75
& advances 00 00 00 00 6.00 3.00

Increase/decre
ase in
investment in - -
other 105,000,000. - 36,994,653.0
institutions 00 550,000,000.00 0

- -
667,072,749. 4,730,836,15 871,835,388. 761,649,255. 393,708,003.
Other assets 00 8.00 00 -79,085,561.00 00 00

Deposits from
other -
banks/borrowi 420,151,007. 23,216,602,3 8,253,109,16 1,351,695,093. 2,426,803,67 78,461,071.0
ngs 00 14.00 2.00 00 4.00 0

Other
deposit/margi - -
n deposit/term 7,090,514,11 3,928,614,72 13,753,671,1 7,705,652,838. 3,855,854,29 134,338,750.
deposit 8.00 0.00 09.00 00 3.00 00

- - - -
Long term 2,002,532,74 3,057,749,50 3,738,194,21 3,589,026,345. 7,528,331,40 998,982,210.
finance 3.00 0.00 5.00 00 1.00 00

32
 - - -
Other 637,951,343. 3,231,818,42 340,700,987. 3,933,640,832. 2,010,511,17 630,520,471.
liabilities 00 2.00 00 00 2.00 00

Net
increase/decre
ase in - - -
operating 4,929,787,97 22,139,056,4 26,111,407,6 5,595,597,825. 2,109,357,41 2,540,786,11
liabilities 5.00 65.00 91.00 00 4.00 0.00

Net cash from

operating 9,937,522,38 27,449,851,1 34,514,696,2 1,844,084,368. 210,044,420. 1,025,112,86
activities 8.00 14.00 25.00 00 00 6.00

Proceeds from
sale of 7,389,968,19 8,150,420,57 29,026,877,8 24,801,248,075 14,158,563,1
securities 0.00 0.00 27.00 .00 80.00

Gain from 16,069,442,5

shares 08.00

Proceeds from
sale of - -
property, plant 208,920,212. 195,413,720. 22,590,192.0
& equipment 00 00 6,834,779.00 90,943,267.00 0

Payments for - - - -
purchase for 24,134,688,9 29,420,240,1 51,267,366,4 29,544,728,710 41,024,477.0 24,380,193,6
securities 50.00 94.00 76.00 .00 0 95.00

Payment for -
advance for 29,825,200,2
impetus 78.00

Net cash used - - - - - -

in investing 16,953,640,9 21,465,233,3 22,233,653,8 4,652,537,368. 13,714,733,2 10,199,040,3
activities 72.00 44.00 70.00 00 93.00 23.00

- - - - -
2,989,768,15 2,424,664,31 2,095,318,54 1,898,437,500. 1,453,719,57
Dividend paid 3.00 0.00 0.00 00 3.00 -93,194.00

Receipt from
issue of right
10,546,875,0
share/transacti
00.00
on cost

33
against right
issue

Cash received
from issuance
of ICB
subordinated 13,900,000,0 2,000,000,00
bond 00.00 0.00

Net cash used - - -

in financing 7,557,106,84 2,424,665,31 2,095,318,54 1,898,537,500. 12,446,280,4 1,999,906,80
activities 7.00 0.00 0.00 00 27.00 6.00

Net
increase/decre
asing cash & - - -
cash 540,988,263. 3,559,952,46 10,185,723,8 4,706,890,500. 1,058,408,44 7,174,020,65
equivalents 00 0.00 15.00 00 6.00 1.00

Add: cash &

cash
equivalents at
beginning of 9,902,280,78 10,443,269,0 14,003,221,5 24,188,945,318 19,482,054,8 18,423,646,3
the year 2.00 44.00 03.00 .00 18.00 72.00

Cash & cash

equivalents at
end of the 10,443,269,0 14,003,221,5 24,188,945,3 19,482,054,818 18,423,646,3 11,249,625,7
year 45.00 04.00 18.00 .00 72.00 21.00

NOCFPS 15.70 43.38 51.94 2.78 0.30 1.34

34
 Investment Corporation of Bangladesh

Financial & Ratio Analysis

For the Year 2015 to 2020

Particul Formul
ars a 2015 2016 2017 2018 2019 2020

Current
Total assets +
assets & Non-
propertie current 111,939,871, 133,771,872, 175,382,677, 171,096,209, 196,570,362, 201,156,768,
s assets 520.00 030.00 593.00 229.00 762.00 881.00

Total
liabilitie
s - Long
term &
Current fixed
Liabilitie liabilitie 111,939,873, 82,664,213,4 108,409,187, 113,877,509, 119,976,790, 118,921,930,
s s 535.00 29.00 915.00 501.00 283.00 394.00

Cash &
cash
equivale
nts +
A/R +
Marketa
ble
Current securitie 223,879,747, 124,216,108, 164,529,648, 159,649,992, 185,768,355, 189,958,441,
Assets s 070 693.00 996.00 385.00 444.00 945.00

Total Total
Sharehol liabilitie
ders’ s+
equity & Shareho
liabilitie lders 335,819,620, 133,771,823, 175,382,621, 171,096,155, 196,570,298, 201,156,703,
s equity 605.00 915.00 999.00 605.00 276.00 180.00

Current
Liabiliti
Total
es +
Liabilitie 68,149,843,9 96,243,231,8 126,113,989, 133,047,640, 153,528,671, 157,563,033,
Non-
s 38.00 74.00 128.00 709.00 019.00 619.00
Current

35
 Liabiliti
es

Share
Capital
+
Sharehol Retaine
ders’ d 13,632,545,7 12,793,294,6 14,067,216,7 14,743,373,8 11,213,698,6 11,900,364,9
Equity Earning 40.00 18.00 63.00 97.00 97.00 40.00

Current Ratio

Particula
2015
rs Formula 2016 2017 2018 2019 2020

Current
assets /
Current 2
Current liabilitie
Ratio s 1.502658811 1.517672553 1.40 1.548369105 1.597337357

Debt Equity Ratio

Particula
2015
rs Formula 2016 2017 2018 2019 2020

Total
debts /
Debt- Shareho 4.999054853
equity lders
ratio fund 7.52 8.97 9.02 13.69 13.24

Debt to Total Asset Ratio

Particula
2015
rs Formula 2016 2017 2018 2019 2020

Debt to Total
total debts / 0.608807594
assets Total 8
ratio assets 0.72 0.719 0.777 0.781 0.783

EBIT

36
Particula
2015
rs Formula 2016 2017 2018 2019 2020

Revenu
e-
Expense
s
(excludi
ng tax
& 5,411,419,42 4,324,483,97 6,891,660,38 6,674,463,89 1,803,073,08 1,842,485,45
EBIT interest) 8.00 5.00 5 3.00 8.00 7.00

EPS

Particula
rs Formula 2015 2016 2017 2018 2019 2020

(Earnin
g to
equity
sharehol
ders /
No of
equity
shares)
EPS * 100 6.94 5.25 6.95 6.27 0.86 0.74

Book Value Per Share

Particula
rs Formula 2015 2016 2017 2018 2019 2020

Ordinar
y
sharehol
ders
equity /
Book No of
value per equity
share shares 69.20 59.30 74.15 57.06 56.08 56.80

Price Earning Ratio

37
Particula
rs Formula 2015 2016 2017 2018 2019 2020

Market
price
Price per 9.971181556
earning share /
ratio EPS 11.2952381 10.66906475 9.100478469 65.20930233 76.75675676

Working Capital

Particula
rs Formula 2015 2016 2017 2018 2019 2020

Current
assets -
Current
Working liabilitie 47,626,485,4 41,551,895,2 56,120,461,0 45,772,482,8 65,791,565,1 71,036,511,5
capital s 01 64.00 81.00 84 61.00 51.00

Cash Ratio

Particula
rs Formula 2015 2016 2017 2018 2019 2020

Cash &
cash
equivale
0.178283530
nts /
2
Current
Cash liabilitie
ratio s 0.169 0.223 0.171 0.154 0.095

NOCFPS

Particula
rs Formula 2015 2016 2017 2018 2019 2020

NOCFP
S 15.70 43.38 51.94 2.78 0.30 1.34

38
 Investment Corporation of Bangladesh

Calculation Analysis

For the year 2015 to 2020

Particul
Name ars 2015 2016 2017 2018 2019 2020

Investme
nt in
shares &
Current securitie 76,847,860,5 90,851,392,1 121,876,776, 115,202,817, 135,456,806, 145,571,800,
Assets s 25 31.00 226.00 097.00 976.00 375.00

Loans
and
advances
/
Investme 18,912,101,7 19,361,495,0 18,463,927,4 24,965,120,4 31,887,902,0 33,137,015,8
nt 25.00 58.00 52.00 70.00 96.00 49.00

Cash &
cash
equivale 10,443,269,0 14,003,221,5 24,188,945,3 19,482,054,8 18,423,646,3 11,249,625,7
nts 45.00 04.00 18.00 18.00 72.00 21.00

Total
current 106,203,231, 124,216,108, 164,529,648, 159,649,992, 185,768,355, 189,958,441,
assets 295 693.00 996.00 385.00 444.00 945.00

Current
Liabilitie Borrowi 8,380,055,28 5,322,305,78 9,060,500,00 5,471,473,65 12,999,805,0 12,000,822,8
s ngs 5.00 5.00 0 5.00 56.00 46.00

50,196,690,6 77,341,907,6 99,348,687,9 108,406,035, 106,976,985, 106,921,107,

Deposits 09.00 44.00 15.00 846.00 227.00 548.00

Total
current
liabilitie 58,576,745,8 82,664,213,4 108,409,187, 113,877,509, 119,976,790, 118,921,930,
s 94.00 29.00 915 501.00 283.00 394.00

39
Sharehol
der
Equity
& Total
Liabilitie liabilitie 68,149,843,9 96,243,231,8 126,113,989, 133,047,640, 153,528,671, 157,563,033,
s s 38.00 74.00 128.00 709.00 019.00 619.00

Sharehol
ders’ 43,789,982,2 37,528,592,0 49,268,632,8 38,048,514,8 43,041,627,2 43,593,669,5
equity 86.00 41.00 71.00 96.00 57.00 61.00

Total
sharehol
der
equity &
liabilitie 111,939,826, 133,771,823, 175,382,621, 171,096,155, 196,570,298, 201,156,703,
s 224.00 915.00 999.00 605.00 276.00 180.00

Sharehol
ders’ Paid up 6,328,125,00 6,328,125,00 6,328,125,00 6,644,531,25 6,976,757,81 7,674,433,59
Equity capital 0.00 0.00 0.00 0.00 3.00 4.00

Retained 7,304,420,74 6,465,169,61 7,739,091,76 8,098,842,64 4,236,940,88 4,225,931,34

earnings 0.00 8 3.00 7.00 4.00 6.00

Total
sharehol
ders’ 13,632,545,7 12,793,294,6 14,067,216,7 14,743,373,8 11,213,698,6 11,900,364,9
equity 40.00 18.00 63.00 97.00 97.00 40.00

6,586,614,94 5,768,546,82 9,626,407,85 8,695,785,46 3,337,511,91 3,345,978,54

EBIT Revenue 4.00 4.00 8 3.00 3.00 5.00

Expense
s
(excludi - - - - - -
ng tax & 1,175,195,51 1,444,062,84 2,734,747,47 2,021,321,57 1,534,438,82 1,503,493,08
interest) 6.00 9.00 3.00 0.00 5.00 8

5,411,419,42 4,324,483,97 6,891,660,38 6,674,463,89 1,803,073,08 1,842,485,45

8.00 5.00 5 3.00 8.00 7.00

40
Reference
1. www.icb.gov.bd

2. www.icbml.com.bd

3. www.icbamcl.com.bd

4. www.istcl.com.bd

5. www.dsebd.org

6. Annual report of ICB

41