Intellectual Capital Disclosures In Bangladesh: A Case

From Southeast Bank Limited

Report Format

Submitted to 
Sharmeen Akter
Lecturer of 
Southeast university 
 

Submitted by 
Md Shahajalal Rafin 
Id:2021110000012 
Batch:58 
 

Course title
Principles of Accounting
Course code:101
BBA
Section:1 

Date of submission 
Date:08.01.2022
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TABLE OF CONTENTS

Content
s
...................................................................................................................................2

1 . INTRODUCTION..............................................................................................1

2. OBJECTIVES......................................................................................................1

3. METHODOLOGY..............................................................................................1

4. LIMITATION......................................................................................................1

5. OVERVIEW OF BANKS...................................................................................1
MISSION & OBJECTIVE:................................................................................................................................................3
SOUTHEAST BANK LIMITED, HEAD OFFICE.......................................................................................................................4

6. ANALYSIS & FINDING....................................................................................5

7. SUGGESTIONS..................................................................................................7

8. CONCLUSIONS..................................................................................................8

9. REFERENCES....................................................................................................8
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1 . Introduction

In a dynamic and competitive environment, intangible property are being taken

into consideration as important as tangible property and even more in a few cases.
Intellectual capital is the value of the knowledge, skills, business training, or
proprietary information that can give a company a competitive advantage.

Intellectual capital is considered an asset and is widely used as a collection of all

information resources owned by a company that can be used to generate profits,
acquire new customers, develop new products, or otherwise improve the business.
Can be defined. This is the sum of employee know-how, organizational processes,
and other intangible assets that contribute to the company's bottom line.

Intellectual capital is a corporate asset, but measuring it is a very subjective task.

As an asset, it is not accounted for as "intellectual capital" on the balance sheet.
Instead, if possible, it is incorporated into intellectual property (as part of balance
sheet intangibles and goodwill) that is difficult to measure by itself.

Companies are investing significant amounts of time and resources in developing

management skills and training employees in business-specific areas too, so to
speak, to enhance their “mental abilities”. This capital, which is used to strengthen
intellectual capital, benefits companies. This is difficult to quantify, but it can add
value to the enterprise over the years to come (Chen, 2021).

.
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2. Objectives

To investigate the extent of Intellectual Capital disclosures by the commercial

banks of Bangladesh.

3. Methodology

This paper is a qualitative paper based on content analysis. Secondary data sources
have been used.

4. Limitation

Time restrictions and unavailability of data.

5. Overview of Banks

Southeast Bank Limited was established in 1995 with a dream and a vision to
become a pioneer banking institution of the country and contribute significantly to
the growth of the national economy. The Bank was established by leading business
personalities and eminent industrialists of the country with stakes in various
segments of the national economy. The incumbent Chairman of the Bank is Mr.
Alamgir Kabir, FCA, a professional Chartered Accountant.

Southeast Bank is run by a team of efficient professionals. They create and

generate an environment of trust and discipline that encourages and motivates
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everyone in the Bank to work together for achieving the objectives of the Bank.
The culture of maintaining congenial work - environment in the Bank has further
enabled the staff members to benchmark themselves better against management
expectations. A commitment to quality and excellence in service is the hallmark of
their identity.
Southeast Bank takes pride for bringing women into the banking profession in a
significant number for gender equality (Southeast Bank Limited , 2022)
(assignmentpoint, 2021) (assignmentpoint, 2021).

Mission & Objective:

The mission of Southeast Bank Ltd. is to obtain a sustainable position in the
banking sector of Bangladesh. It has been consolidating its position and preparing
itself for the new millennium by upgrading technology, training its workforce,
restructuring organizationally, and creating a new work culture. The purpose of the
bank is to inter-mediation involving funds from saver to borrower and offering
profit thereby. The general objective of the bank is to provide computerized
modern banking services to valued customers. Mainly the objectives are:

 High-quality financial services with state of the art technology

 Fast customer service

 Sustainable growth strategy

 Follow ethical standards in business

 Steady return on shareholders equity

 Innovative banking at a competitive price

 Attract and retain quality human resource

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 Commitment to Corporate Social Responsibility (assignmentpoint, 2021).

Southeast Bank Limited, Head Office

Address  :  Eunoos Trade Center

52-53, Dilkusha, C/A, Dhaka - 1000, Bangladesh

Telephone  :  +880247115321

Telex  :  632425 SBANK BJ

Fax  :  88-02-9550093

E-Mail  :  complaint-cell@southeastbank.com.bd (For Lodgement of Complaint)

cards@southeastbank.com.bd (For Card Related Query)

ibank@southeastbank.com.bd (For Internet Banking Related Query)

horemittance@southeastbank.com.bd (For Remittance Related Query)

info@southeastbank.com.bd (For General Query)

SWIFT  :  SEBDBDDH (Southeast Bank Limited, 2022).

.
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6. Analysis & Finding

Intellectual Capital Components ICD Index 2018 2019 2020

Patents   

Corporate culture   

Structural capital   

Work processes   

Information systems   

Internal Capital Knowledge management   

Trademarks   

Networking systems   

Financial systems   

Research projects   

Management philosophy   

External capital Brands   

Companies name   

Customer name   

Customer satisfaction   

Customer loyalty   

Customer /employees   

Education/training of customer   
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Sales breakdown by customer   

Dependence on key customer   

Average customer size   

Description on customer   
involvement

Description on customer relation   

Annual sales per segment or product   

Distribution channels   

Business partnership   

Market share   

Favorable contract   

Human resources   

Human capital   

Human value   

Employee   

Employee loyalty   

Human Capital Employee expertise   

Employee know-how   

Employee knowledge   

Employee productivity   

Employee skills   

Team work   
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Training   

Total Available Indexes 36 37 37

7. Suggestions

I have gone through the annual report of Southeast Bank Limited from the year
2018 to 2020. And I have done the content analysis, I have found out that in the
year from 2018 to 2020. they have maintained and given discloser of most of the
items according to our checklist. we know the intellectual capital is the value of the
knowledge, skills, business training, or proprietary information that can give a
company a competitive advantage.

Intellectual capital is considered an asset and is widely used as a collection of all

information resources owned by a company that can be used to generate profits,
acquire new customers, develop new products, or otherwise improve the business.
Can be defined. This is the sum of employee know-how, organizational processes,
and other intangible assets that contribute to the company's bottom line (Chen,
2021).

Here, information about the patents, Sells breakdown by the customer, and
customers’ names are not available. They should try to add information about that
topic in the annual reports for a better introduction of their company. They also
didn’t use to focus on the key customer during 2018 which they did from the years
after, showing they are still improving which brings a good massage to the
customers that might make that customer choose their bank instead of others. If
they maintain this rate of discloser with the improvements they will have a positive
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view of the customers which in return will help them in gathering more
investments for future endeavors.

8. Conclusions

This report attempts to investigate the Intellectual Capital practices of Banks in

Bangladesh. The relevant data about 40 IC items are collected from the annual
reports of Southeast Bank Limited for the years 2018, 2019, and 2020. The
empirical findings of this research show that the level of IC of the Southeast Bank
Limited in Bangladesh is surprisingly high as the majority of the IC items are
disclosed in annual reports of the companies.

This report in the bank will help the bank to focus on the sector they can still
improve on and also help the customers it they want to be involved with the bank
or not.

9. References

assignmentpoint. (2021, 01 01). Company Overview of Southeast Bank Limited.

Retrieved from assignmentpoin.com:
https://www.assignmentpoint.com/business/banking/company-overview-of-
southeast-bank-limited.html
Chen, J. (2021, 02 16). Intellectual Capital. (T. Brock, Editor) Retrieved 01 09,
2022, from investopedia.com:
https://www.investopedia.com/terms/i/intellectual_capital.asp
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Southeast Bank Limited . (2022, 01 01). Profile. Retrieved from

southeastbank.com: https://www.southeastbank.com.bd/?page=profile
Southeast Bank Limited. (2022, 01 01). Contact Us. Retrieved from
southeastbank.com: https://www.southeastbank.com.bd/?page=contact_us