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    70 views76 pages

    Meghna Bank LTD 2020

    Uploaded by

    FarihaHaqueLikhi 1060

    Copyright:

    © All Rights Reserved
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    PRIVATE & CONFIDENTIAL «wet. mgiworldwide// Wea orice: UPAIBNA BIND. RANIAYENE TT FLCOR MORNE OKA, HE 028612, Ema og enn oF FE CHAIGER TH FLOOR eB SK MUA ROAD, AGRABAD com ioonh ChutToaRa, amLaLanes, "a btastoe hema my al «woe. mgiworldwide)+ Independent Auditors Report ‘othe Shareholders of Meghna Bank Limited Report on the Audit ofthe Consolidated and Separate Financial Statements Opinion ‘We have audited the consolidated financial statements of Meghna Bank Limited and its subsidiary (the “Group") as well as the separate financial statements of Meghna Bank Limited (the "Bank", which comprise the consolidated and separate balance sheets asat 31 ‘December 2020 and the consolidated and separate profit and loss accounts, consolidated ‘and separate statements of changes in equity and consolidated and separate cash flow atements for the year then ended, and notes to the consolidated and separate financial Statements, Including a summary of significant accounting policies and other explanatory Information. In our opinion, the accompanying consolidated financial statements of the Group and separate financial statements of the Bank gle a true and far view of the consolidated balance sheet of the Group and the separate balance sheet of the Bank as at 31 December 12020 and ofits consolidated and separate profit and loss accounts and its consolidated and Separate cash flows for the year then ended in accordance with International Firancial Reporting Standards (RSs) as explained in notes 2 Basis for Opinion \We conducted our audit in accordance with International Standards on Auditing (SA). Our responsibilities under those standards are further described inthe Auditors’ Responsibities for the Audit of the Consolidated and Separate Financial Statements section af our report. ‘We are independent ofthe Group and the Bank in accordance with the international Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (ESBA Code), Bangladesh Bank, and we have fufiled our other ethical responsibilities in accordance with the IESBA Code and the Institute of Chartered Accountants of Bangladesh (CAB) Bye Laws. ‘We believe that the audit evidence we have obtained is sufficient and appropriate to provide a bass for our opinion. Other Matter ar ‘Te consolidated and separate financial statements of Meghna Bank Limited forthe year (= tended December 31, 2019, were audited by Mahfel Hug & Co. Chartered Accountants, who ‘expressed an unmodified opinion on those statements on March 11,2020, Key Audit Matters Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated and separate financial statements ofthe cutrent petiod. These matters were addressed in the context of our auit of the consolidated and Separate financial statements as a whole, and informing our opinion thereon, and we do ‘not provide a separate opinion on these matters "Measurement of provision for Loans and Advances The process for estimating the provision for advance portfolio associated with ereit risk Is significant and complex. For the Individual analysis, these provisions consider the estimates of future business performance and the market value of collateral provided for credit transactions. For the collective analysis, these provisions ‘are manually processed that deals with voluminous databases, assumptions and ‘aeulations for the provision estimates of ‘complex design and implementation. [Ax the year end the Bank reported Wola! ross loan and advances of BOT 35,840.62 ‘Millon (2019: 80T 34,362.62 Milion) and total provision for Loan and Advances BOT 4,162.45 Million (2019: BOT 1,159.60 ‘milion), We have focused on the following significant judgments and estimates which could give rise to material misstatement or ‘management bas: ‘+ Completeness and timing of recognition ‘of oss events in accordance with eiteria Set out in BRPO circular no 14, dated 23, ‘September 2012 & BRPD circular n0.03 dated 21 April 2019 & BRPD circular no.A7 dated 28 September 2020 & BRPD circular no.56 dated 10 December 2020 ‘© For individually assessed provisions, the ‘measurement of the provision may be dependent on the valuation of collateral, estimates of ext values and the timing of cash flows; We tested the design and operating effectiveness of key controls focusing on the following: + Tested the credit apprasal,_ loan disbursement procedures, monitoring, and provisioning process; 1 entifcation of loss events, incuding early warning and default warning Inleators; ‘© Reviewed quarterly Classification of toans (Cl) ‘+ Followed Bangladesh Bank's circular and ‘gucetines; ‘Our substantive procedures in relationto the provision for loan and advances portfolio comprised the following: ‘© Reviewed the adequacy of the Banks general and specific provisions; ‘+ Assessed the methodologies on which the provision amounts based, recalculated the provisions and tested ‘the completeness and accuracy of the tundeeying information and; + Finally assessed the appropriateness and presentation of disclosures zganst relevant accounting standards and Bangladesh Bank guidelines. Provision measurement is primarily dependent upon key assumptions relating to probability of default, ablity to repossess collateral and recovery rates. Seenote no ‘Valuation of treasury bill and treasury bond 10, and 13 to the financial statements ‘The classification and measurement of treasury bill and treasury bond require Judgment and complex estimates. In the absence of a quoted pric in an active market, the fair value of treasury bill and treasury bond is determined using complex valuation techniques which may take into consideration director indirect unobservable market data and complex pricing models Which require an elevated level of judgment. ‘We assessed the processes and controls put in place by the Group to identiy and confi the existence of financial instruments We obtained an understanding, evaltated ‘the design and tested the operting effectiveness of the key controls over the financial instrument valuation processes, Including cantrals over market data inputs Into valuation models, model governance, and valuation adjustments We tested a sample of the valuation ‘models and the inputs used in those models, using a variety of techniques, Including. comparing inputs to avalable market data, Finally assessed the appropriateness and presentation of disclosures against relevant accounting standards and Bangladesh Bank guidelines Legal and regulatory matters See note no 2.12.3 and Jato the financial statements ‘We focused on this area because the Bank and is subsidiary (the "Group") operates in a legal and regulatory environment that is exposed to significant litigation and similar risks arising ffom disputes and regulatory proceedings. Such matters are subject to ‘many uncertainties and the outcome may be dificult to predict. ‘We obtained an understanding, evaluated the design and tested the operational effectiveness of the Group's key controls cover the legal provision and contingencies process. We enquired to those charged with governance to obtain thelr view en the status of all significant tgatior and regulatory matters. These uncertantles inherently affect the amount and timing of potential outfiows with respect to the provisions which have been established and other contingent ‘ible, ‘Overall, the legal provision represents the Group's best estimate for existing. legal ‘matters that have a probable and estimable impact on the Group's financial postin, We enquired of the Group's internal legal counsel for all significant litigation and Fegulatory matters and inspected inernal notes and reports. We assessed the methodologies on which the provision amounts are based, recalculated the provisions, and tested the completeness and accuracy ofthe Lunderiing information ‘We also assessed the Group's provisiors and contingent labilities dsclosure. Fr systems and controls Our aut procedures have a focus on IT systems and controls due to the pervasive nature and complexity of the IT fenvironment, the large volume of transactions processed in numerous locations dally and the reliance on automated and IT dependent manual controls (Our areas of aul focus included user access ‘management, developer access to the production enviconment and changes to the TT enviconment, These are key to ensuing IT ‘dependent and application based controls are operating effectively. We tested the design and operating effectiveness tothe Bank’s IT access controls ‘over the information systems that ae critical ‘to financial reporting. We tasted IT general controls (logical access, changes management and aspects of IT operational controls) This included testing that requests for access to ystems were appropriately reviewed and authorized. We tasted the Bank's periodic review of access rights. We inspected requests of changes to. systems. for ‘appropriate approval and authorzatior. ‘Carrying value of investments in subsidiary(s) by the Bank “The Bank has invested in equity shares of ts subsidiary Meghna Bank Securities Ltd. As at 531 December 2020 the carrying value ofthis investment fs BDT 349,99 milion. [A the time of conducting our audit of the separate financial statements ofthe Bank we have considered the recoverable value ofthe Bank's Investments in Meghna Bank Securities Ltd, stated at cost We have reviewed Management's analysis of impalement assessment and recoverable value calculation of subsidiaries in accordance with IAS 36. In particular, our discussions with the Management were focused on the contioued appropriateness of the value in use model, the key assumptions used in the model, the reasonably posible alternative | assumptions, —particalarly where they had the most impact on the value in use calculation. ‘Management has conducted impairment assessment and calculated recoverable value ofits subsiiary Meghna Bank Secures Ltd in accordance with IAS 36 (Impalement of assets) 35 there was no existence of Impairment indication. ‘We aso checked mathematical accuray of the model, recalculated discount rate used within the model, inputs used in the determination of assumptions within the model were challenged and corroborating information was obtained with reference ‘10 external market information, third- party sources. ‘See note no 1.3, 1.3.1, 2.14 and 10,00 tothe fh ‘Impact of COVID-19 on Business ‘On 11 March 2020, World Health Organization (WHO) declared a global pandemic due to corona Virus related respiratory disease commonly called as COVI-18. It has a big impact on imports, other procurement, production, export, and other activities of the Global business. The government of Bangladesh has declared feneral holidays from 26.03.2020, 30.05.2020 and majority of entity of our country was compelled to reduce their ‘operation at that period. To contain the spread of this disease, along with many ‘other countries of the world, Government of Bangladesh has aso taken a number of measures such as declaration of general holiday, enforcement of lock down, social distancing etc, Asa result ofthese measures all business and economic activities ace affected which would alzo impact the Bank as well. Although the business operation of the Bank and profitability of the Bank are Impacted due to COVID-19, but as the situation is constantly changing and there is no certainty at present as to how long the situation wil prevall the potential impact of COVID-19 related matters on the Bank's ‘operation and financial results cannot be Regarding COVID-19 pandemic effect en the business activites of Meghna Bank Linited, wwe have discussed with the management of Meghna Bank Limited on the potential Impact of pandemic on the Bank. We also ‘compared the Financial Statements Fgures ‘of pre-condensed period with the current period to find out the impact of CONID-19 Pandemic on the Business. Moreover, we have checked the deposit, disbursement and perlod and compared the same with pre pandemic period. We have also analyzed the ‘expenditure management policy and other heath and safety regulations on test basis. during the pandemic reasonably assessed ‘See note no 2.37 tothe nandal statements a Other information [Management is responsible forthe other information. The other Information compries all Of the information in the Annual Report other than the consolidated and separate financial statements and our auditors’ report thereon. The Annual Report is expected to be made available to us after the date ofthis auditor's report. ‘Our opinion on the consolidated and separate financial statements does not cover the other Information and we donot express any form of assurance conclusion thereon In connection with our audit of the fnancal statements, our responsibilty isto ead the ‘other information identified above when it becomes avalable and, in doing so, consider “whether the other information is materially in consistent with the fnancial statements or ‘ur knowledge obtained in the audit ar otherwise appears tobe materially misstated. \When read the annual report, if we conclude that there Isa material misstatement therein, we are required to communicate the matter te those charged with governance. Responsibilities of Management and Those Charged with Governance for the Consolkated and Separate Financial Statements and internal Controls ‘Management is responsible forthe preparetion and fair presentation of the consolidated financial statements of the Group and also separate financial statements of the Bank in ‘accordance with IFRS a5 explained in note 2 and for such internal control as management ‘determines is necessary to enable the preparation of consolidated and separate financial statements that are free from material misstatement, whether due to fraud or error, The Bank Company Act, 1991 as amended and the Bangladesh Bank Regulations require the ‘Management to ensure effective internal audit, internal control and risk management functions ofthe Bank. The Management is also required to make a self-assessment on the effectiveness of anti-fraud internal controls and report to Bangladesh Bank on instanes of {aud and forgeries. Ii. preparing the consolidated and separate financial statements, management Is ‘responsible for assessing the Group's and the Bank’ ability to continue asa going concern, disclosing, as applicable, matters related to going concern and using the going concern basis ‘of accounting unless management either intends to liquidate the Group and the Ban orto ‘ease operations or hasno realistic alternative but to do so. ‘Those charged with governance are responsible for overseeing the Group's and the Bank's financial reporting proces. ‘Auditor's Responsibilities for the Audit of the Consolidated and Separate Firancial Statements (Our objectives are to obtain reasonable assurance about whether the consolidated and Separate financial statements a8 a whole are fre from material misstatement, whether due to fraud or error, and to issue an aualtor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not @ guarantee that an audit conducted in accordance with 188s will always detect a material misstatement when it exits. ‘Misstaterents can arise from fraud or error and are considered material if, indvidualy or in the aggregate, they could reasonably be expected to lnfluence the economic decisis of "users taken on the basis ofthese consolidated and separate financial statements. ‘As part of an audit In accordance with ISAs, we exercise professional judgemen: and ‘maintain professional skepticism throughout the ault. We also: ‘+ entity and assess the risks of material misstatement ofthe consolidated and serarate financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufciet and appropriate to provide a basis for our opinion. The risk of not detecting. a material misstatement resuting from fraud is higher than for one resulting from error, as fraud ‘may involve collusion, forgery, intentional omissions, misrepresentations, or the ‘override of internal control + Obtain an understanding of internal contol relevant to the auitin order to desgnaudlt procedures that are appropriate in the circumstances. ‘Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. ‘+ Conclude on the appropriateness of management's use ofthe going concern basis of ‘accounting and, based on the audit evidence obtained, whether a material uncertainty ‘exist related to events or conditions that may cast significant doubt on the Group's and the Bank’s ablity to continue as a going concern. f we conclude that a material Uncertainty exists, we are required to draw attention in our aueitors report to the felated disclosures in the consolidated and separate financial statements o,f such Asclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Group and the Bank to cease to continue as a going ‘+ Evaluate the overall presentation, structure and content of the consolidated and separate financial statements, including the dscosures, and whether the consoldated ‘and separate financial statements represent the underlying transactions and events na manner that achieves fair presentation. + Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible forthe direction, supervision and performance ofthe group aualt. We remain solely responsible fr our audit opinion. \We communicate with those charged with governance regarding, among other matters, the planned scope and timing ofthe audit and significant audit findings, Including any significant deficiencies in internal contol that we dently during our aud. \We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate withthem all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated and serarate financial statements of the current period and are therefore the key audit matters. We describe there matters in our auditors’ report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine shat a ‘matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication Report on other Legal and Regulatory Requirements In accordance withthe Companies Act, 1994, the Bank Company Act, 1991 as amended and ‘the rules and regulations issued by Bangladesh Bank, we also report that: (i) we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit and made due verification thereof; (i) tothe extent noted during the course of our audit work performed on the basis stated under the Auditor's Responsolity section in forming the above opinion on the consolidated financial statements of the Group and the separate tinancalstatenents lof the Bank and considering the reports of the Management to Bangladesh Bank on ntifraud internal controls and instances of fraud and forgeries as stated under the Responsibilty of Management and those charged with governance for the consolidated & Separate financial statements and internal control for the francial statements and internal contro 2} intecnal audit, intemal control and risk management arrangements of the Sroup as disclosed inthe financial statements appeared to be materially adequate; b) nothing has come to our attention regarding material instances of forgary oF liregularty or administrative ervor and exception or anything. detrimental commited by employees ofthe Bank and its related entities (ther than raters, disclosed in these nancial statements} (i) financial statements of Meghna Gank Limited's subsidiaries namely, Meghna Bank Secures Ltd. have been audited by MARS & Partners, Chartered Accountants and hhave been properly reflected in the consolidated financial statements; {Wv) In our opinion, proper books of accounts as required by law have been kept by the ‘Group and the Bank so fara it appeared from our examination of those books; (0) the records and statements submitted by the branches have been propery maintained and consolidated inthe financial statements; (wi) the consolidated balance sheet and consolidated profit and loss account togethe with the annexed notes dealt with by the report are In agreement with the bocks of account and returns; (ui) the expenditures incurred were for the purpose ofthe Bank's business forthe yeu (ull) the consolidated financial statements of the Group and the separate financial statements of the Bank have been drawn up in conformity with prevaling rues, regulations and accounting standards as wel as related guidance issued by Bangladesh Bank, (i) adequate provisions have been made for advance and other assets which are in our pinion, doubtful of recovery as per tripartite meeting held on 01 March, 2024 and Bangladesh bank approved given vide letter no, OBI-1/135/2021/594 dated 07 March, 2021 (9) the information and explanations required by us have been recelved and found satisfactory (oi) we have reviewed over 80% of the risk weighted assets of the Bank and spent over 2,533 person hours; and (ai) Capital to Risk-welghted Asset Ratio (CRAR) as required by Bangladesh Bank has been maintained adequately during the year Knibed gcle Kelana CO Dated, Dhaka ‘fan Wahab Shafique Rahman & Co. 22 March 2023 Chartered Accountants Signed by: Faruk Ahmed FCA Partner Enrolment No.: 1591, ve: 210322159145311355, GFA. coos 2 ees ‘ASAT DECEMBER 3, 2020 Pariatare hoes] ao "PROPERTY AND ASSETS cast 0236936 san997622 ‘ish n hana (nding Foreign arenes) 3 ‘Swapuzaie || sa7a77006 Slane it angadesh Bak and gen Ban) (cdng ere Curren) + L_s009256920 ||_zsans20s05 ‘atace with other Banks and Finca tttions 5 2540sn0292 5526359753 Teanga LEIS | AASHOLY use nga sosasn2e ||_“2enorg040, Money aallon Shore Notice ‘ 110.0000 2070,000000 ert ‘HUELSIESIe || — ATES 724504 ones ssssarare ||_“rasaxzs6o Loans and Advances 4 ss.s00.06 555 y.362.615,008 Loans aero, Overdraft TETAL08ONF | 34386996809 Pils raed an Doane saavesos||_““isseiez15 ‘ee Arts lnelading Premises, Furitare and Fares 9 220726865 200943017 ther ete io 73n72%409 ——Aagat0.220 Toul sets En, LuamiaTiEs ano carr arowingeomther Ran Fianclletatoneand Agente 1 Deposits and Other Accounts 12 Warspuuge1 — ayo0e.99157 Cart Aout Ober ecu Ssuz67 900] 3975368578 lite ajatie ‘a5gase470 || arasioe Saving anceps 2ns2on07s |} 2iesar2724 are Cates of Deport her abies 12 __sp10914130 2860996900 opiat/Sharehoder' a ane Pat Gna az [—aapapaano0 || —vaapana0e Satay Reserve 18 ‘essaaox || “eayonena9 (Other Reserve (Revaution of HFT 8TH Scares) 16 foagsusee S106 ‘Shrpsinrofeand Lats Account Retained Earning a ‘goes ||___se2a3sea ‘otnlShrehalders ety waizace200 5397.59.60 Noreanvaling interest 1 104 102 “otal Shareholder Equity with Now Contoling intrest ‘otal ables 4 Shrshotder? Equity Cima Saar EER7 D100. —THSSLISL 7 ‘CONSOLIDATED OFF- BALANCE SHEET FFENS INST DECEMBER 31, 2020 Parca ote] 28 aa SORTING ABTS Aegpances and dorsrents 19 [—wenoare | rararesse tates ura za | saosreais|] a774senss Ineo Leer ofCreae at | taiaasiss |] “rseawssu4 bor teste Swaiaaes || zaaase720 oud Tanarerae —aaTaRDIET Corner conmarraens Documentary credits abd shot em uae ebted tans areal aes purchased aed oar depots placed : ‘pdr note nance snd reahng dering ses nara formal stony fli, reins an ete comaents és ‘TOTAL OFF-BALANCE SHEET TEMS INCLUDING CONTINGENT HABITS SEY, ATO Accompanying (1-47 notes orm integral parts of these ancl statements ADD. Upton er Director itecor Mahagog rector & CED 5 ha eee ila Bont ‘Chartered Accountants ‘Slane by: Paral med FCA Enrolment No: 591 ve 2103221591AS048955 Tar LZ 2 =e 2 SS ae ———— 2 Ce ee eons uel ye Ss 2 | eel ee pane or ea ‘ostag, Stamps, Telecommunication et. a aopoeart s96ea.sn1 secs * Lggell ee eee ae Soa ae ce =e ao SE ate ae ee =a a Fee pee ae = as aes 100 906,366, = ane ae aan —— or ete i en pela “ haa, 2 ar, 2028 Senne afoureprateen te ‘Signed: Fara ahmed FCA Cat Dvcrziaazaisoiasoatsss (= 2" MecHNA pani MET CONSOLIDATED CASH FLOW STATEMENT {FORTHE YEAR ENDED AS ON DECEMBER 31,2020 ‘Gas ows rom Operating Aces Inet ep oh Pe ea terest Pmt it | arerzcesro| essrizeese) Dradends Receipes paves | “"iosanate Fee toms cpesincach isseraee | Ssaanaer Reoveroson an previously writen ff y (ohPaymensto tmpoyes ss7aagson]] — (rs724205] (hah Pye to Supls azmesn|] — “asizst trcome Te ald enuiesoon]| — d7n367s0) Rats tom ter Operating sete a2 | “oxsesarr || “ronsaso. ayant for eter Operating aces 3 L_ qoogerorsl|__co2er.re9} ‘operating Proftbtore changes in Operating Assets and Usbiles Pras. TaN Increase Decrease n Operating Assets and Lsbtes Stator Depts Pca Sale ding Souris Treasury Ble) {eas and Advances Otber Banks - {ens and Advance to Caromere cussracaszal| —6zanesnaua] Goer asset “ ‘sons || “uzsosnia Deposit ther Bank raazaszaw || s2io1a269} Depot tom Casters ‘nsasa270 || ‘Sranessss0 ‘edges , ‘ihrer os |__ msi |L__spsa0 ‘Subtotal ‘yesh om Operating Activites cosh ows rom nvestng Actives Trovsed fom leat Secrie = : Pye or purcser of scree Gassesr3i0]| ergata rca Soe of Property Pat &Egupent (easzasosi] “Gesr2s9} Pres S of Subsary a ‘net cash sen vesting Activites RaeORESS) —TISTTTAI Cat ws rom Plancig tes orovingmoher bt aD TR] Recaro ase odiary share : * Dinan Pu ‘9 Netcast rom Fnancing Activites aaa, aay ‘yet incense Decrease) Cash & Cash Equant (ABC) ‘Gsoaso7 927) —so490200 ect of achange ate changes on cash cash quale F) cast andcash equals atthe Dexinning of te yar gmansisss _axviza.ns ()Gashandeseqivlente atthe end ofthe year (D+ EF) a6 imsssne arenes ss Acompanying (147) noes orm tral patsof hese nant statements PhD apa dee ete deer BRN gp fa [iro — corso —-waveacuere 1 i 7 oa ae BETTE —= TERT Bees T6ET CETTE tere nba ee MocINA Baw LED ALANCESHEET ASAT DECEMBER 31,2020 ES oe) 2 Particulars I ind a "PROPER AND ASSETS con 3602362262 _3.164907.954 (acne (Icing Foreign Currencies) = Swan [657067358 alc ith Bags ak snd ts get nk 3) {cain Foreign Caren) « sooaze«r0 | 2507920506 alanc wit other asks and Financ nstutons s saizingre 3512900551 Ietongiacs Taisavrase | — sziaoeari ute danas susasoazs |_“2atoseas0 one talon Shor otis @ 30.000.000 73070000.000 Invest Mh sassgvoane —_ g7asr7 021 Covernment ‘sistas | a7aa 4000 none and Advances fe sspinez40g seaen150r4 as Ca cel Overdri TLL 7O9 | FU196996 B09 ‘ite Puinsed and Dacunted srasos | “"teseinas ‘and Asse nclading Premises, Fratue and Fears b= 2ias7606a 270709602 Mt ass25705 76617064 ne aerwings rom other Hanks, Fania stitutions Depots and Oter Accounts 1a #20427.40 —404000.009 rent ceunte Other Resets ‘Saehaero0e [A976 fist eaossava | asussL.067 String Ba Depots aisaonars | 23usaia724 ed Depts senoeireay? | sasstarze80 ewe Corateo Depot ter Depots vse tabi 13 __29n905.636 _ 2950420270 ‘oral Usbattes “eorsounsot a8 954N24 S95 (opty Sharholders' Buty Paap Copal ‘a2 [aan | —aesEpOOROT ‘Stuy Rees © ‘esssogsi | “eeia0ss9 (thes Reserv (Revaluton of HF AT Sects) 6 oa7sisea S106 ‘Stiri rf spd Lass Auntie Earnings nm scapeasoa|| _soz7s.z6 ‘otal Sareelders Equity Spor dea ras —5392.102701 ‘otal ibis Shareholders’ Egy arias ay WG MGA BANK UDITED ‘OFF-BALANCESHEET FEMS ‘ASAT DECEMBER 31, 2020, Partials roel] 28 pa -Acceprances an Baorsemen as [waar | ances ewes of Gesrantee aa | aaoarmate || a7rasenses revocable Lateef rele ni | tataosiees | “7seies924 Bis for Cateton ‘wrn236s |] zs4asez20 ‘ther Comingnt bes i Toul SoreTIRSIO — WATASTROL Documentary code and shor term ade etd trasseons 5 Foard assets parse an forward dposts pled Unde note tuace and reahngundervriting lies Unde ormal standby flier re ines another continents : Conrinceet HABILITES EE Accompanying (1-47) note form integral parts ofthese financial statements Lh " Director Ue edhe hector Nan Slenodin term ofour pre afeven date Lap hlitisl keabizes lelumde, Da. 22a 2821 ‘an aad shaqenabmas co, CGrteredhecoutants ‘Shed Farl Ahmed FEA Parner Enrolmont os 1591 Dye snaszzisasai13ss ‘oR THE EAR ENDED ASON DECEMBER 34,2020 Tao ae Petcare roves] ze za ‘nr coe ‘as [Sanaa || — sacs nares a on Depots and borowigs te ua [__2ssseanzse||_zeooverza5 ‘etinrest income Gia iseast —TaszeZ08 event 259 [—nieestiete | saur3900 Como, ang and Brokerage tea | “taasgrrt || saraazs (ter Operatic Zn stotenit||__“res3300 aaa Tens6a07 ‘ott Operating income ‘insseedo20 3027598059 Saran Alwances am [— sssasasis | sovasicor et Taxes nsrances Bec ee. wa | assassriz |) stasease ga apenas, Ste 590s ssa530 Fostag Suns Teecommuniatin ats ansnsss |) w9srases Sao Pings Avertsemans Ba faios7e |] teorza04 eta Say ees = irasoass || sseso50 Decors Fes 3 "00 ‘T9040 ede ace Es Ss0000 25000 ‘hag oninanloses 5 Deion Repairs of Bak Ate sa sossezee |) ssaer.7a6 ter ens sts |__20s1s8896 ||_zozanoass ‘otal Operating Expenses isisesaet 0302015 Protoss) before Prvisan 2m, is rig96- “sates ‘Spec rove for sie Ln and Adana 7eaoin00 ][ — 2skosoa0) ‘Coen rain for Unclasied aunand vanes @s2som0) “Guasaano ‘omer Pein or ance She poner (rsn000|] —“razon000 Spesldanral Proven on19 (ozos930 - Pros or Dit ae afer 15905800 || (50s,00 ‘hur Povcane "sooo ||_{t1sonoo0] ‘Tol ron soy sage 9am) — roo ‘otal rato) before Taxes eidaz20250—sonssaze Cent ae 1x2 [ER — | fisoss0x0) —Ta7a0a000) Retin saning brave foram proves yeas Sarees tiger Appropriations —————— Stet Raserve as | tapeanse | —soopaaaas Eps oes, eae Srp sv tan 300- "sos 6 Haring Pe Share (75) 3 7 29 : spanyng (8-47) noes form nteral parts ft a ee Sian soto en at Aid iadab cbignelebvenSce bia. 22M 2 hn vara fee aan ‘Garver accountants Signy: oak shed FEA Parner Die-2107271591A8811355 ‘as ows rom Operating Acts Inertia say [—sareaiaren | sania Interest Paes ‘ta | c@zees0szenl] cesaren295) Draenei Beant ‘tsoso02 Remon cecinsincsh sieawazn |] sesorazes {Sektayment to mpnyece (ssnaméso|] — crsox67sn] (Gah yen supplies ‘aaiwsz6q)| “tcazas09] Income oe a Gensoa7aa}|| — casrssz0sn] ooops tom ter Operating sce wa | “Sesrmaol] “rrszciss Payments for ter Operating ses es L_oxerissol|_ assis operating Prot betare changes in Operating Assets and abies PEAe0aT 702200505. IcreaseDereas n Operating Assets and Uses cha Sale of Tring Secures Treasurys) Ue and hdres to ther Bank (ane and Advances te uromere aara0o%zea|| 4208937860 (theres ue saeare ||“ ex7ezaao] Dept rom ther Bas aseraszant || (teio1a269] Depsts rom Customers ‘xasstaes || Sereaiseir (bere on aunt of customers Sib Tot 717612560, —so9.00,48 ‘Ane Cat fm Operating Actes 4139,773290" —TSSIAGL27 ash ws rom investing Atv rceds msl of Sars Fema forpurchrer serie casasinéeal] — 7a30s780] eran Sa a Prope, Ft &Equpnest (eacsisis)||__“(eateh sm 1) Net Cas Used laveting Actin THB 9H5.199) 3447.38) ich ows rom Financing Attar torn ae Bane Ta Neca rom Financing Actives aa aay ‘yet cress (Decreste) i Cash CAS uaents (AWB) TESI3.70165) 1674700 1 let of tchange ate changes on cash cash equivalents 5 1 cath anda eqns at the Dinning ofthe yar 705594705, __s1s2520001 {)cahandcatbequvlens atthe end fie period (DES) 46a ——GZGASTGHO. —_B76094705— Accompanying (1-47) notes form tora pat of these sacl tatements Wpatlad — her f- Director Director hector Managing Director & C0 Cra & teins) e : squomayns jepueuy aso jo sed yestnuy mioysayou (14-1) Surkuedaroooy 5 [serene [eras — [ornare ono] = Tevososc—[oooar sr STE Seon — [eersonTo —| earOeraETT ee ee ten te aaomusono | it | rend dnaes onsea 0202 “Ye waaAaDa GHONA WIA 3HL WOS "ALINOA NI SONVHD 40 LNGWWELVIS. ‘OaLIAIT NVA VN 6 ET TOTECESST seceerse sovoursa oosove test riezeecass evesozst |ausosszer | aozvos otra eszersset ssonnnse epanepeesang so si ae oy wea wea ea TR mor [smvsomemsiox| sxexsoxo | souowzreo | smmowcore | sow rood seen ozo te wamiezaa .vsv _MEGHNA BANK LIMITED Fr SUBSIDIARY [NOTES TO THE FINANCIAL STATEMENTS. [ASAT FORTHE YEAR ENDED DECEMBER 31, 2020 1.0 Background ofthe 11 Logatstaus othe Bank Meghns Bank Ltd (HGBL) Is 9 shed commer tank incorporated asa publ mite comoany withthe Registra oft Soe Companies and Freunde the Companies Act 1994 vides Reg no. 1000613 dated 20 March 2013 n angladesh, The bank conmenced bang operation on May 09,2013 by aban ons from nash Bank under seston 22) of The Bank Companies Act 1991 (Amendment 2013) At psu the bank fas forty seven (47) branches and elgten (18) ow ATM booths covering eommarcaly Important estos of the com. lthe branche the banram on commercial antennal bss “prin place of snes and estered fc ofthe hank i oeated at Suvast Imam Squan, 65 Gulshan ene alban, Dhaka 1212 12 Nature ormusiness ‘The Bok ofr all Kinds of commercial banking actives encompassing a wide range of serves incing ‘cepting depts making oa and advances car busines treasury management internet bang dscounting tits inland ntrationlrenitane series, lg xchange tanston nd oer related serves sch os Colleton rung paras sezeptances and ters of red secure apd cso services 4.5. Subsilary Company | subs san enti in which the bak as contol as pr as sharehoing and voting rights is concern ‘Conte ent won the bank ssa shareholding (more than SO percent) a the company the power ‘lic oindietly to govern he onl nd operating paces of mentees as on he dat ofthe reporting ‘Separate oan stitement and consodated ancl statements te being prepared for subsidy investment Sr per Intorational Acounting Standard 1AS-27, “separate finan statoments” ana ae, ‘onstdated Financ Sttement”Ineret ofthe Nowconoliing shown ae te Non-cntreing Interest veh incudes ‘Shore aia ofthe Non-contollng portion aswell ax pro earned tat gos the now-contg nerest However inter group taneacion alanns andthe renuting unrealized. poft/Loss Is elimnated on the 1.34 Mepna Bank Secures Limited eh Bank Secures Limited was incorporated in Bangladesh on February 12015 under the Campanes Act 1954 ara rive company vides region no, C-121270/15. Th rpstered ofc ofthe ompany ioe at Svs tam Squat, 65 alson venuC/A Galshat Dhaka. The man objective othe compary to at sa ful edged stock broker and stock desert exerts buy and sel order and to malta own porto as well ¢ cusomer por under the dieretion of cusomers. ‘Meghna Rank It, holds 9499999 no of hares of Meghna Bank Secures Li with face value eT 100 each ‘ich reglalent 6 99993 of tal shares othe company. 220, Signicant Accounting Policies and Basis of Preparation of Fnanclal Statements 2A. as of Accounting “The Financial Statements of he bankas sibs hve een prepared ona going concern tsi unde the Fisica cst convertion, In asordace with “Fst Sehedule(Sc38) of the Bank Companies Act 1991 (dmndiert-2013}, in compliance with te provisions of Bangladesh Bank Clr, International Accounting Sundae (18) and ntratonl Financ Reporting Standards (IFRS) adopted by the Insts of Chartered ‘Accotants of Bangle (CB) and other ules and repabstons appiaben Bangladesh, In cases where the requirements of Bangdesh Dak der wth tase of 1Ss/IFRSS, the gudelns ofthe ‘nade ask hss een apple Matra dpsrtares rom the reguemnto Ss &[FRSs are afollows 1) Presentation of Financial Statements RS: A pe requirement oFIAS 1 fan statements shal compe statment of ancl post, atmo of oft or tats and other compretensiv Income statment of changes ogy, saterent of a! ows noes, mprsing slgiicant accountng pales and other explanatory Information. A per para 6 OAS the en ‘ha ls present cutrent and norcrrent suet sod lites st separate dasicatons i ts statement of Ananda postion ‘Bangladesh tanke The presentation ofthe nancial statement in prescribed ort (balance shit profit Jes ecount, cash oe statement statment of changes in saul lilly statment) and cert dososres ‘hori rw gle by the Fat Shedule (con 38) of the Bal Company et 1991 (sender upto 2013) ‘nd BRPO cular no 14 dated 25 June 2003 apd sequent guidelines rom Dagldesh Ua Ine resid format here sno opin to present asses ad labs undercurrent and nowcurretdazsitons Investments in Shares and Securities Inns: As pr requirement of IFRS 9 cacao and measurement of invesonent in shares nd cures wl {epend on how these aro managed (the ents business model and tel contractual as Now carters Based on these factors t woul generally leer under “ta valu through profit oles ein or unr at fir ale trough other comprehensive income” who any change nthe fava (as measured in accordance ith FRS 13) at the year-end takes to pra and ss scout ater comprehen ince rence. [Bangladesh Banks As pr BRPD ular no, 14 dated 25 June 200, investments a quoted shares nd ungusted Shares are revaued athe yearend at market price and Net Assets Value (NAY) of last auld ance sheet respectively. Provision soul be made fr any loss asing fom diminution in Ylue of investment otherwise Investment ae rcopzed a cost. ‘Theanlreviowsts investment in shares and secure at ach quarter en and took adequate proslon hasbeen mado er Bangladesh Ban guideline (Nate 3a (e and Annenur-A ‘evaluation Galns/Lasss on Government Secures Isms: Axper eqirement of IFRS 9 where scree wl fl ner the etary offal value throug proto ss count ny change In the far value of ast Is revgnized through th profi an loss acount. Where secures ‘Sremeacre't a value through the comprehensive come’ then gino ses sal be reid ott mpechensve ince (OD, exept or impairment ais or Inses apd foreign exchange gia loss. The Jos allowance arse om inpatient sal be recogael in (Ol) an shall not reduce the carryng amount of ‘ancl assets nthe statement of ian paidon Sacrtes designated ae amortaed eos are marred 3t ‘eciv inert ate method and inrest incomes recogszed hough the prot ands acount. Bangladesh Hanke According a DOS rela no. dated! 26 May 2008 and subsequent isin sue tro ‘OS eel na 5 dated 25 Januar 209, amortsation los charged to prof an as acount akto-maet lexan eration of government secures (Tbls/T-bonds) categorized as hl fo teding (HFT s charged to oft and lor aerountbut ny unread anon sch vevalanton recognised to revauationreseve count ‘ilo designated ar hld to matty (HTM) are meaeured st emrtod cost but interest acte/gln recaps ehrouph ely 4) Provisions on Loans and Advances RS: Aspe IFS 9 en ety sal recognize an ingrent allowance on laps ad aances ast on expected ret ses, each reporting date, an entity shal mearare the impaement allowance for loans an advance {amount equal tothe iftine expected ret ase th ret riakon thee Ions ad avancer has icreatod ‘lant since inal recognition whether ssoed an an inivideal or collective boss cmsierng all ‘easoable information including tht which sorwar-loking For hos loaned advances for wich the credit tlk has oot creased sigaficay sinc nl reogton at each reporting dae an entity sal measere the Impairment allowance aan amu equal we 12 month expected relearn ral rom el vets ons oas apd avancer tht are pose within 12 month ater rporting dt Dangladesh ans Ae per BRPD Cele na 14, dated 28 September 2012, BRPD Crear no. 19, dated 27 December 2012 BRPD Green. 5, dated 29 May 2013, BRP Cesar no, 16 ated 18 November 2014, BRPD (Gear no, 8 dated 02 Aust 205, BRPD Cel na 15, dated 27 September 2017 and BRPD Crea. ted 20 February 2018, BHPD Cur no 0% dated 21 Api 2019 a general provision st 025% to 296 under ‘ifernt categorie of ward ans (atadard and SHA loans) bao be maintained rears fective ‘idence oF impairment Alo provision fr a-sandad lap, doub las and bad ose, shoul provied at 20% Sb and 100% respectively for lane and adranes depending on te duration of overdue Agata 35 por [BRP cralar no 10 dtd 19 Saptomber 2007 and BRPD crear no. 14 dated 23 September 212 a oneal provision a 19 requ be provided for certain of -blnce hee exposures Such provision pals ae at "ecicly in ine with those presrbed by IFRS 8. Bangladesh Bank also sue BRPD Clr no 56, dated 10 ‘December 2020 fr aitlned a spell general provson-COVIDT9 m9 om unctassfed lam & advances ‘nud SMA bans & Advances. «Recognition onterest in Suspense RS: Loans and advances to comers are gery cafe at amortized cost as por IFRS 9: Pani Instrument and Sere income reogezed by using the atv interest ate method othe rose cxying ‘Innurt over te fern ofthe lan, Once aan sougtenybacome credit nied the ety sal py the ‘Sacivettret ote othe aortied cos of thes leone and Beane angladesh Bane sper BRPD cela na 1 dated 23 September 212, onc aloon scsi erst on sich loans are not allowed to be recognized a ncn, rater the eoresponding amount neds to be ceed 3m Interestin nupenve acount which presented aay inthe balance sot other Comprenensive income IPRS: A pr IAS 1 other Conpreensve Income (CI ka component of fianclsatement oe element of Octaret be included ina singe other comprehensive income statement. ‘angladsh bale Bangladesh anchor sed templates lr fan statements whlch are strobe lowed byl banks in Banglades The templates of ancl statements lee by Bangladesh Banko not ncade other ‘omprchesive icone statment Ach the bank dws prepare the other comprehensive nce tate However elements af Lian, are shown inthe statement changes in egy. 1) Financial Guarantees WHS: As per IPRS 9: Financial Instruments nancial gunrantes ar contacts that require the ser to make ‘ocd payments to reimburse the hole or loss i incrsbacuse a speci detor fas to make payment when da in aeonance wih the aii or madd ttn debe instrament Panel parete aber re ‘engi nla tora va ls tanacton cot hate diety table othe re othe Hae lines The inn garunee atte absoqenty messed te igher fhe amount of as allowance fer expected credit loses as per Impalrmentreqlment andthe amount inal recopnanc lest, ncome ‘engin accordance wih the pines of FRS 1. Panel guarantor ae included within te ables. ‘Bangladesh Banke Aspe BRPD clr no, 14 dated 25 [une 200, nancial arate such sit of dt eter of guarantee ae to be tented a flac sent Roms No abit is ecogaaed for he gant except ‘he cash margin and 1% general provision for ceran contingent bites. 1 cashand Cash Equivalents Rs; Cash ad cheque ems shouldbe roported a cash kom a er IAS7. ‘Bangladesh Hanke Some cash nd cash equivolnt items such as "Money at allan on shor note treasury bl, Bangladesh ankle and prize band tent pesrted abe shown ac cash and cach equivalent Money aca ‘nd on short notice presented am the face ofthe alnce shot and teasiry ils rae bonds are shown investnents However nthe cash Row statement money acl and on shor notice nd prize bonds are shown as ‘ash and eah equlalents beside cash nha Balance wih BB ard other banks. 1) Non-Banking Assets No ndeaton ofan banking ase foun nay TAS IFRS. ‘Cash ow statement TRS: The cash ow statement can be prepared using either the drt method or the Indirect method The presentation i sect to present thee cash ows Ina manne hat appropriate for the busines or nds The method selected e'spplled content ‘Bangladesh Bank: As per ORPD cular no 14 dated 25 jms, 200, cash Now statment et be peparsd ‘owing mitre of Dre and nrect meta ‘Balance with Bangladesh bank (Cash Reserve Requirement) IRS: Balance with Banglaesh Bank should be weated as oer asset a eno salable for win day tay pertion a perlAS7 ‘Bangladesh bank Balance with Bangladesh Bok streatedas ash and cash equivalents, 1 Presentation of ntangble Assets IRS: An intangible aset must be ented and recogni, andthe cose mst be given a pe 1S 30, Sangladesh Bank There reputon fo intangible asst a8 per BRPD clara 1 deed 25 ane, 2003 1) Of Balance Shost ems IRS: Ther no concep of of alan seston any IFRS ence ter no reqiement for dose off Talane sheet tron th ce ofthe ance hot. [Bangladesh Banke As por BRD daar no 14 dated 25 Jane, 200, ofbalancs sheet tame mit be dios separately onthe faceofthe balance shot. 2) Disclosure of Appropriation of Profit lens: There eno requirements show sppropration af prof th foe of statment of oft a sa other ‘eomprehensve come Bangladesh Bank As per BRPD cra no. 14 dated 25 June, 2003, an appropriation af profit shoul be dsdosed (©) Loansand Advances Net of Provision _:Loansand advances shouldbe presented ne of provision ‘Bangladesh Banke As per HRPD cular nn. 14 date 25 Jue 2009, provisan on loans and advances ate resented separately a abit and eamot be ete of agant os and advances ‘Alo eter tw the Note 232 Campane of Itemasonsl Aesomtng Standards (IAS) and Internati anal Reporting Standards (RS). ) Recovery of Writen Of Loans: TS: Aspe AS 1, an entity shall not oft assets and Habis or income or expenses ules required or ‘permite hy a IFRS, Again every of writen flan shouldbe charged to statment of polit or rand eer Bangladesh Bante As per BRPD clr 9. 14 dated 25 Jane 2003, recoveries of wmount previ writen off shouldbe adjusted withthe pei provision fr loans and advances eases: RS: As per International Fnac Reporting Standards) 16 Lanes, An ety sal eognian aright se sete ands eee ably ‘Bangladesh Bank: angladesh Bank has been reviewing the Sue and Has not yet published any rar paring PRS 16, Wo hal comply with IFRS 16 as soon as Bangladesh Bank publishes ay ntieaton regarding Presentation of Financial Statements ‘The inancl sttoments are presented In compliance with the provisions of the Inertial Accounting Sandads (18) - 1 "Pesettion of PnatclStatemen” IAS ~ 7"Cash Flow Statement’ AS ~ 12 “come axe IAS 16-Propery, Pant and Equlpment IFRS 15 Revenue fom Contracts with astome lang with the guielines forms and formats provided by the Bangladesh Bank through BRPD cela No 14 Sled 25 ™ ‘owt goa 3) 23. Use ofstimates and judgments "The preparation of finn staterents In conor with 1S/IFRS and Bangladesh Sank ras requires Imnagements jute esinates and asumplons fr which the applcaon of scouting poles andthe Feportedsnauns of sts lable, income and expenses may vary and atl resus may ee rm hast smtes and underng assumptions ae reviewed on an ongoing bass Reson to asmunting etinats are ong nthe peri In wich he exists eid abn any fire prod afte Key estimates include the following Laan ss provision Revahtion fests Defred a assets ratty fund ‘Useful ves of depredble assets 24 Consolidation of Financial Statements ‘The consolidated finan statrent locke the fianclatatement of Meghna Bak Lined an its subsiiary Negi hak Secures Limited Th consoled ancl statements have been prepared in cordance with Inernatonl counting Standard 27"> “Separate Pinca Statements and TRS 10: Consnted Fania Stress The consolation of he nana atments have been made after eliminating all materi inter ‘opty lnc, nse and expense sing om nercompany Uansctians 25 cansstency In acordance with IFRS ramen forthe preparation of Aoanll statement together TAS = Land IAS ~ 8 Meghna Bank Lt. cose ifort consistent om one period tothe nex Where sletig and apg 2 new acoting pls changes fn scouting poles, correction of errs abd the amour ivaed are {counted for and coed transparently n scone with the requirement oFIAS~B However fr changes in ‘cotuting estas the related amour i recoptnd prospectively in th curentpeiod and in the next period ot 26 Going Concern Basis of Account ‘The fnancl statements ve been prepared on he assessnent fhe Banks abit continue soi concer {hls MGBL bas nether any intention nr any lel or regulatory ompson to Buia or cura mater the eae of ano it operatons. The ey ancl prance such sey profaityaset qual, prvison Suflncy snd etal adequacy he an tind to ebb» Rely trend fr couple o years estes, the ‘management snot aware of any material ues tht may ast sigifant doubt upon the ul’ ably 0 ‘onus aging concen. 27. oreig Cuvency Transaction 2:74 Foregn Currencies Translation reign cuteny transactions are converted into equivalent aka using the ang exchange ates the dates of| fespetve transactions apr IAS = 21" the eects of changes in fala exchange rats. Foran currencies lancer a at December 31,2020 have been cnverted nto tak currency a the revaluation rte determined by Bangaesh bank. onmiments for oxtsanding fran freign exchange contractors discos in these final statement are teanited tcotraced rate. Conngent Liiltes/ Cammitment fo eter of eet and let of guarantee ‘loominsted in rig cence are expressed In taka terme te ater of exchanges elingon the alco shoeates 27:3 Translation Gains and Losses “The reuking exchange transcons gun an sss are ncued inthe prot and oss acount. rai sets an saci alti are fet nthe net moun repre in the lance sbectwhon ther is2 legal enoreable right offen resogized amounts and there san intention tse on a neta oeaae theasiet and sue the laity simultaneous. » one 29 Revenue Recognition lotr nunca loans and advances accunted for as income on accrual basi noes on cassie loans tnd nance ireded to nterest suspense acount with lero intres there From ceded a income ‘Sand when recived a pr lntaction contained n ORPD crane na. 14 dated 73 September 2012, BRPD ‘lola an 19 dated 27 Decent 2012, BRP claro 16 dated 18 November 2014 and BRPD deur no. 56 ned Lo December 2020 of Banglades a Interest Income from avestment Interest ince on invest in Government and other secures debentures and bonds i acount for on secrvalbai «Dividend income Divided ncn on nvesens ‘receive the payment stashed old during the pro in which i dalred and ascertaned and ight 4) Feesand Commision Fee and Commlesion income aro fom series provided by the Bank and recognized on rest basis Cammision charged on Latter fre (Land Latter of Guarantee (0) are creed to nce athe tine of Stet the ransations The advance payment of taxon UC commission Is ly deposed to the Tax Aubry. Slay, Income Tax and VAT are deed ot source and deposed tothe Govt Exchequee win the tine pled spree debs epmerestand other Expenses Interms ofthe provisos ofthe International Accounting Standard (AS) 1 “Presentation of Pian Statements ‘Sconce wh he rovonso 680 Grea'o eaaedasaezoog nme 2.40 Dividend pl Interim dividend is rcogied when they are pd to sharholders Final vind i recognized whan its approved by Shareholders ian entity cares dividend to Holders of equly Instruments (25 defined in1AS 32 Financ instruments Prosetti) arth eprting prod tho entity all ot resopie Whose dvdends salty atthe eo of ‘the reporting period as per AS 10 Para 12, 241 Assets and the Basso their Valuation 2241.1 Gash and Cash Egutatents ‘anand cash equivalents ine notes and ois on had wrested lanes bald with Bangles Bank, and ipl iid ancl eset which ar subject oicgcant risk changes thelr val and are use by ‘he Rank Management for shoe-er commitments (@) Loans and Advances are stated toss amount an before offing general provisions against. (0) Interest on Lenn nd Advance i caleuted on aly product ass bat charge and account fr quarterly (0, Provkon for Loans and Advances is made on thy basi of yearend review by the Management and of Insrutions contained in Bangladesh Boner as amended ine to ime. The asian fates are gon category Stato lan and advances Be | andy ‘Requirement = rvsions or vase anon fansite Oe an ts wd ola mR] yp a lsterrse, consumer nancing shore trn ag roan sta aa) [sl ad dio enterprise Sancing wae aa cans oancing (Ot ha hosing Hance nd Tan Tor profsonal nde consumerfoacing scheme) = = [ester ancing (or Hesig Fina Las or praca te) 3% 7 Stor tem ag edt 1% 1% Erect general provision COVD-19 186 1% Ipeca Menton Account Tas | 025M 26 [rovstons for classified loans and advances Fs 2 6 [Dot 50% Eg ator Los 00% rr ‘ommiston an acount on il porined and sound ae recognized atthe tine ofreaizaton. an tavestments Investnents ve buen inl recognised at ast nual aqustion charges asolted with he investment (Coverment Tear ils nd Bonds (stegoriand as HFT rand HT) are accounted fo a5 er Bangiades Bank ‘os dala tern 0 dated 26 May 2008 and DOS clr na dated 28 January, 2003 ‘The valuation methods of investment used are 2) Held to Matorty (7) Investment which are intended to be ed to matty af ase ald to Maturity. These measured st ‘nota cost teach year ed by ting int account any scout or premium in acquit. Aertzed amount ‘rch prenim ae booked into profit an lows aconunt or dsnunt e booked to reserve url matriy or ‘igont 1) Mela for euding (HFT) Tnvestenent pearly efor sling ading lassi inti categor. Aer inl rcone Investments fe mar to mart worl, Decrent in he book ve ls recognised fa the prot and less aunt abd ay ‘sue a nvestments hasbeen enumerate a ols: Tvestmet cas] Tal ecgnion | _Mrowremeat ater oat Recording a oe ecording of changes Fresury oa ast Profan Lost Acoant gai ona cur) e eke lo sevaluton serve Ireaury increase in vale ©

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