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December 21, 2011 ******************* Lecturer Department of Business Administration ****** University

Subject: An application for submitting an assignment on ´City Brokerage Ltd a sister consultancy organization of The City Bank Ltdµ

Dear Sir:

In accordance to your advice to us for preparing an assignment on Brokerage Business and its areas of business, we have selected the City Brokerage Ltd. To serve our purpose, we have followed standard methodology to extract out findings. We have applied sophisticated data analysis techniques to get consistent and sound output. As per the direction of you, we have tried out the best to highlight our findings through our findings from the annual report of 2010 and some part from primary enquiry. WE sincerely hope this report will fulfill the requirement suggested by under the course Portfolio. We will appreciate if you kindly spend some of your valuable time by calling on us for discussion in connection to the interpretation of this report.

Thank you. Sincerely yours,

Name of group members: Md. *********** ID-083**** Batch-** ************ ID-091***** Batch-** ****** Ahmmed ID-082***** Batch-**

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hold or otherwise acquire or invest the capital of the Company in shares. OBJECTIVES OF STUDY: The objective of the study is to analyze the relationship between brokerage business with share. Other objectives of the Company are to buy. The specific objectives of this study is  What a brokerage business is?  Working areas of a brokerage business.) for my assignment topic. stock and bond market. After studying this brokerage we have learn many things about brokerage and its related works. The role of a firm when it acts as an agent for a customer and charges the customer a commission for its services. This study also helps us to know about the objective of the Company (Brokerage House) for which it was incorporated are to carry on the business of stockbroker/stock dealers and other related business in connection with security dealing. So that to have knowledge about share and stock price. stock and bond also with the individual investor. also about risk related with the investment market. brokerage house can be a key domicile for me. stocks. etc An individual or firm that charges a fee or commission for executing buy and sell orders submitted by an investor.MOTIVE OF SELECTING CITY BROKERAGE LTD: As a student of Finance Banking and Insurance we must know about the current situation of share. and fixed income securities. For this motive we have decided to select this topic (City Brokerage Ltd.  Relationship between brokerage services and Security and Exchange Commission. sell. 2 .

And we group members are great full that we get you such a very good instructor in Portfolio Management.net. stock and bond business.METHODOLOGY: This study is very important because every investor and individuals has right to know about the work areas where by they doing share. Internet (http//:city//brokerage. We also great full the City Bank officials Mr.bd/) Some from Officials City Brokerage and the City Bank Ltd. We collect all data from Annual report of City Brokerage Ltd 2010. S M Azgor Ali for his help to collect the information. 3 .ldt.

a banking company incorporated on 31 March 2010 but it started its operation from 15 November 2010.1. The registered office of the Company is situated at Jiban Bima Tower. City Brokerage limited offers full. 1. 1. It is a subsidiary company of The City Bank Limited. local institutional investors and high net worth clients investing in Bangladesh and abroad. STATUS OF COMPANY: City Brokerage Ltd (the company) was incorporated in Bangladesh on 31 March 2010 as a private limited company under the Company Act 1994 vide certificate of incorporation no. It has proven reputation in serving customers by maintaining strong Compliance practices and extreme ethical standard. stocks. City Brokerage limited has been set up to cater to the needs of the capital market needs of the institutional and individual clients. The company has four branches each located at Gulashan. it is inevitable that City Brokerage limited became the trusted broker to most of the foreign. 10 Dilkusha Commercial Area. Other objectives of the Company are to buy. and fixed income securities. 4 . etc. Dhanmondi. Dhaka 1000. sell. Having seats in both Dhaka and Chittagong Stock Exchange Limited. Dhaka.fledged international standard brokerage service for retail and institutional Clients and foreign clients. The company intends to offer high quality product and service at a competitive rate to all clients. C-83616/10.CITY BROKERAGE LTD. City Brokerage limited is dedicated to providing a high level of professional and personalized services to its domestic and international clients. hold or otherwise acquire or invest the capital of the Company in shares. NATURE OF BUSINESS: The main objective of the Company for which it was incorporated are to carry on the business of stockbroker/stock dealers and other related business in connection with security dealing. Nikunja and Motijheel. COMPANY AND ITS ACTIVITY: 1.2.

RESEARCH & PUBLICATION o Daily price information Market Overview. Daily Fact Sheet o Monthly report Industry/Corporate research report 5 . un-pledging and confiscation o Lending and borrowing o BO ISIN balances and master maintenance enquiry 1.4. BROKERAGE SERVICES o Brokerage service for Institutional Clients o Foreign Fund Managers o Insurance Companies o Banks and Financial Institution o Trust o Corporation o Brokerage Service for retail (Individual) Clients o Margin long facility at affordable interest rate o International and Domestic Placement of Securities Brokerage Services o Trade Execution Dhaka and Chittagong Stock Exchange Limited o Pre-IPO private placement opportunities through Merchant Banks o Appointment of dedicated and skilled sales representative o Opportunities for trading in different financial instruments 1.3.5.1. CDBL SERVICES AS FULL SERVICE DEPOSITORY PARTICIPANT (DP) o Bo (Beneficial Owner) accounts opening and maintenance o Dematerialization and Re-materialization o Transfers and multiple accounts movement o Pledging.6. CUSTODIAL SERVICES o Safe Deeping of securities o We have an exclusive arrangement for clients to keep their shares in safe custody in our vault 1.

VALUE ADDED SERVICES o Daily portfolio services through email o Daily trade confirmation through SMS service o Web services for portfolio and report.o Free access to our company research reports through our web-site o Sectors and Company research reports o Half yearly political and economic update 1.7. FEATURES OF CITY BROKERAGE: o International Standard Brokerage Operation o Corporate member of both Dhaka Stock Exchange Ltd. (CSE) o Full service Depository Participant (DP) of Central Depository Bangladesh Limited (CDBL) o Provide Margin loan to its Clients. o Availability of market research reports and sector wise analysis o Facilities for opening brokerage and BO Account for Non Resident Bangladeshis (NRBs) 6 . 2. e-mail fax and website o The City Brokerage provides all CDBL related services which includes Dematerialization/re-materialization of script freeze/release of requests and suspension. (DSE) and Chittagong Stock Exchange Ltd. pledge/un-pledge and confiscation etc. o Staffed with highly skilled professionals o Advanced IT infrastructure for efficient order processing o Strict adherence to international Compliance standards regulatory requirements and The City Bank Limited Code of Conduct o Exclusive Arrangement for safekeeping of all instruments in own vault o Regular reporting of portfolio and transaction status through sms.

ACCRUAL: The expenses. PLANT AND EQUIPMENT AND DEPRECIATION: These are started at cost less accumulated depreciation.3. plant and equipment are as under: Category of Assets Furniture and fixtures Office equipments Rate 10% 20% 3. under historical cost convention on a going concern basis and the requirements of Companies Act 1994 and Securities and Exchange Rules 1987. accrued/ due but not paid have been provided in the books of account of the Company. cheques awaiting for collection and fixed deposits which are held and are available for use by the Company without any restriction. bank balance. 3.1. The company assists in all legal and regulatory affairs involved in the process. CASH AND CASH EQUIVALENTS: Cash and cash equivalents includes cash in hand. 3. PROPERTY. irrespective of capital or revenue nature. BASIS OF PREPARATION OF FINANCIAL STATEMENT: The financial statement of the company have been prepared in accordance with International Accounting Standard as adopted by the Institute of Chartered Accountants of Bangladesh as Bangladesh Accounting Standards (BAS). plant and equipments using straight-line method in accordance with BAS 16. 3. Depreciation is charged on the items of property. SIGNIFICANT ACCOUNTING POLICY: 3.o The City Brokerage assists Foreign Institution/NRBsto set up Custodial and Cash account with local or foreign commercial bank. Full month¶s depreciation charged on additions irrespective of their acquisition and no depreciation is charged in the month of disposal. 7 . The rates of depreciation on various classes of property.2.4.

767. The market value of the share is Taka 7. Property. Membership Fees: Dhaka Stock Exchange Ltd (DSE) Chittagong Stock Exchange Ltd (CSE) Total 580.829.182 24. 8.984. Investment in Securities: Investment Security 2.101 (656.999.168) 288.570 3. Year 2010 4.176 The above amount represents income tax withheld from the transactions of traded securities @ 0.810.457. Accounts Receivable: Receivable from DSE CSE Clients (Portfolio maintenance & credit stock sell) Total 446.000 600.518 shares of RAK Ceramics Ltd under book building methods.Figure In Tk.000.001.865.600) as on 31 December 2010.184.350 (15.569 8 . Advance Tax: Advance payment of corporate income tax 71.327.528 7.050% which is the final tax liability of the Company under section 82C of the IT ordinance 1964.000 303.184. 9.775 2.225 26.864 This represents investment made by the Company in purchase of 45. plant & equipment cost: Less: Charge on depreciation during the period Net book value 5. Intangible Assets: Costs of software Less: Amortization Net book value 6.573) 23.000 19.670.889 (value per share @ Taka 171.196.

674 582.000 18. cheque deposited with bank for clearing and petty cash at head office and branches.205.000.205.102 individual & institutional clients against margin loan for investing in securities through the Company.500 615.000 7.473.928 1.490 1.000 7. deposits and prepayments: Advance to/against Office rents Employees Supplies Management expenses Deposits Total 16.427. SHARE CAPITAL: Authorized capital 20.000 shares of Taka 100 each Issued subscribed and paid-up capital The City Bank Ltd 599.046 36.954. CASH AND CASH EQUIVALENTS: Cash and cash equivalents consists of the bank balance with Principle Office of The City Bank Ltd.749.390.789 12. Advance.674 57.000 9 .940. Account-wise outstanding balance at 31 December 2010 is given below: 1101132314001 1101132310001 Added Cheques awaiting for collection Petty Cash Total 546.The above amount is receivable from 1.418 11.720 32.000 2000. 10.074.000.896.

266 20.102. SHORT TERM LOAN FROM THE CITY BANK LTD This loan was taken from The City Bank ltd in the form of overdraft where the overdraft facilities limit was Taka 550 crore for margin financing and prefunding support for foreign trade of foreign clients is bearing interest @12. on 27.530.12.699 10.632. Subsequently. PAYABLE TO THE CITY BANK LTD: Profit of brokerage division in 2009 Period from 1 Jan 2010 to 14 Nov 2010 Advance to vendors Expenses from 15 Nov 2010 t0 29 Dec 2010 Property.50% per annum subject to revision by bank management from time to time.291 290.686 812.103. deposits and prepayments Advance to Central Depository Bangladesh Ltd Investment in shares Total 96.000 600.741.691 2.485 21. plant and equipment Intangible assets Advance.184.676 10 .000 13.122.985 7.2010 the bank management has reduced the limit to Taka 275 crore.613.999.864 987.5.000.400 shares of Taka 100 each fully paid-up individual 600 shares of Taka 100 each fully paid-up Total 60.738. 14.710 16.

920.456 18.118. ACCOUNTS PAYABLE: Accounts payable The City Bank Ltd.573 51.176.779 Taka 59. BROKERAGE COMMISSION FROM Dhaka Stock Exchange Chittagong Stock Exchange Total 2010 46.452.836 10.500 30.476 37.987. TOTAL ASSETS AND SHAREHOLDERS EQUITY AND LIABILITIES Total Assets and Shareholders Equity and Liabilities 2010 4.676 7.50 3.284 183.038.169 17. PROFIT AFTER TAX Tax 2010 20.287.467.530.058 16.15.499.137 1.681 19. 17.270.774.857 68.021.099.932 Applicable tax rate % *** Provision Taka 7.563 67.883 5.266.488.361.744 Commission payable Total 17.813 9. Provision for Corporate Income Tax: Provision for corporate income tax is made on various sources of income following applicable tax rates on those incomes as computed below: Sources of income Nature of income Brokerage Commission Business Income Net Interest Income Other Operating Income Total 8.50 37.797 11 .372. Guarantee fee 987.