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National Credit and Commerce Bank Limited

Notes to the Financial Statements


As at and for the period ended June 30, 2011 1.1 1.1.1 Status of the bank The National Credit and Commerce Bank Limited (NCCBL) was formed as a public limited banking company incorporated in Bangladesh with primary objective to carry on all kinds of banking business in and outside Bangladesh. The registered office of the Bank is located at 7-8, Motijheel Commercial Area, Dhaka-1000. It has 81 branches all over the Bangladesh and the bank has no overseas branches as at June 30, 2011. It carries out all banking activities through it branches in Bangladesh. The Bank went for Initial Public Offering in 1999 and its share is listed with Dhaka and Chittagong Stock Exchange Limited as a publicly traded company for its general class of shares. The bank commenced its banking business with sixteen branches from May 17, 1993. Principal activities The commercial banking business activities of the bank encompass a wide range of services including accepting deposits, making loans, discounting bills, conducting money transfer, foreign exchange transactions and performing other related services such as safekeeping collection, issuing guarantees, acceptances and letter of credits through its branches in Bangladesh. 1.1.5 NCCB Securities and Financial Services Limited NCCB Securities and Financial Services Limited is a subsidiary company of National Credit and Commerce Bank Limited incorporated on April 04, 2010 as a private limited company under the Companies Act-1994 vide Certificate of incorporation no. C-83683/10. The main objective of the company is to act as a full fledged Stock Broker & Stock Dealer to execute buy and sell order and to maintain own portfolio as well as customer portfolio under the discretion of customers. The company also performs the other activities relates to Capital Market as and when regulations permits the company to carry out activities as per their guidelines. Financial Statements of the company shown in Annexure-M 1.2 1.2.1 Significant accounting policies and basis of preparation of financial statements Basis of accounting Statement of compliance The financial statements of the Group and the Bank are made up to June 30, 2011 and are prepared under the historical cost convention except investments, land & properties and in accordance with the First Schedule Section 38(4) of the Bank Companies Act, 1991, BRPD Circular # 14 dated 25 June, 2003, other Bangladesh Bank Circulars, Bangladesh Accounting Standards and Bangladesh Financial Reporting Standards, The Companies Act, 1994, The Securities and Exchange Rules 1987, Dhaka & Chittagong Stock Exchanges listing regulations and other laws and rules applicable in Bangladesh. 1.2.2 Basis of consolidation The consolidated financial statements include the financial statements of NCC Bank Limited and its subsidiary company NCCB Securities and Financial Services Limited made up to June 30, 2011. The consolidated financial statements have been prepared in accordance with Bangladesh Accounting Standards 27-Consolidated &Separate Financial Statements. Transactions eliminated on consolidation All intra-group transactions, balances, income and expenses are eliminated on consolidation. Profit and loss resulting from transactions is also eliminated on consolidation.

1.1.2

1.1.3 1.1.4

1.2.3 Use of estimates and judgments The preparation of financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised and in any future periods affected. 1.2.4 Going concern The financial statements have been prepared on a going concern basis, which contemplate the realization of assets and the satisfaction of liabilities in the normal course of business. 1.2.5 Functional and presentation currency The financial statements are presented in Bangladeshi Taka which is the bank's functional currency except as indicated. Materiality & aggregation Each significant material item as considered by the management has been presented separately in the financial statements. No amount has been set off unless the bank has a legal right to set off the amounts is intended to settle on net basis. Income and expenses are presented on a net basis only when permitted by the relevant Accounting Standards. Foreign currency transaction a) Foreign currencies translation Foreign currency transactions are converted into equivalent taka using the ruling exchange rates on the dates of respective transactions as per BAS-21 The Effects of Changes in Foreign Exchange Rates. Assets and liabilities in foreign currencies are converted into taka at weighted average rate of inter-bank market as determined by Bangladesh Bank on the closing date of every month. b) Commitments Contingent liabilities / commitments for letters of credit and letters of guarantee denominated in foreign currencies are expressed in Taka terms at the rates of exchange ruling on the balance sheet date. c) Translation gains and losses The resulting exchange transaction gains and losses are included in the profit and loss account. 1.2.8 Cash flow statement Cash flow statement has been prepared in accordance with the Bangladesh Accounting Standard-7 Cash Flow Statements under direct method as recommended in the BRPD Circular No. 14, dated June 25, 2003 issued by the Banking Regulation & Policy Department of Bangladesh Bank. 1.2.9 Liquidity statement The liquidity statement of assets and liabilities as on the reporting date has been prepared on residual maturity term as per the following bases. i) ii) iii) iv) v) vi) vii) viii) Balance with other banks and financial institutions, money at call and short notice, etc. are shown on the basis of their maturity term; Investments are on the basis of their respective maturity; Loans and advances / investments are on the basis of their repayment schedule; Fixed assets are on the basis of their useful lives; Other assets are on the basis of their realization / amortization; Borrowing from other banks, financial institutions and agents, etc. are as per their maturity / repayment terms; Deposits and other accounts are on the basis of their maturity term and past trend of withdrawal by the depositors; Provisions and other liabilities are on the basis of their payment / adjustments schedule.

1.2.6

1.2.7

1.2.10 Reporting period These financial statements cover for the period from January 01, 2011 to June 30, 2011. 1.3 1.3.1 Assets and basis of their valuation Cash and cash equivalents Cash and cash equivalents include notes and coins on hand, unrestricted balances held with Bangladesh Bank and highly liquid financial asset which are subject to insignificant risk of changes in their fair value and are used by the bank management for its short-term commitments.

1.3.2

Loans and advances a) b) Loans and advances of conventional banking in branches are stated in the balance sheet on gross basis. Interest is calculated on a daily product basis but charged and accounted for on accrual basis. Interest on classified loans and advances are kept in suspense account as per Bangladesh Bank instructions and such interest is not accounted for as income until realized from borrowers (please refer Note- 9.10 (x) Interest is not charged on bad and loss loans as per guidelines of Bangladesh Bank. Records of such interest amounts are kept in separate memorandum accounts. Provision for loans and advances are made on the bases of year-end review by the management following instructions contained in Bangladesh Bank BCD Circular no. 34 dated 16 November 1989, BCD Circular no. 20 dated 27 December 1994, BCD Circular no. 12 dated 4 September 1995, BRPD Circular 16 dated 6 December 1998, BRPD Circular no. 9 dated 14 May 2001, BRPD Circular no. 09 of August 2005 and BRPD Circular no.17 dated 06 December 2005. The classification rates are given below: Particulars General provisions on unclassified general loans and advances General provision on unclassified small enterprise financing General provision on unclassified loans for housing finance and on loans for professionals General provision on unclassified consumer financing other than housing finance and loans for professionals General provision on special mention account Specific provision on substandard loans and advances Specific provision on doubtful loans and advances Specific provision on bad / loss loans and advances Rate 1% 2% 2% 5% 5% 20% 50% 100%

c)

d) Loans and advances with no realistic prospect of recovery have been written off against which full provisions made and legal cases initiated but pending. Detailed memorandum records for all such written off accounts are maintained without reducing the banks claim. 1.3.3 Investments All investment securities are initially recognized at cost, being fair value of the consideration given, including acquisition charges associated with the investment. Premiums are amortized and discounts accredited, using the effective yield method and are taken to discount income. The valuation methods of investments used are:

Held to maturity (HTM) Investments which have fixed or determinable payments and are intended to be held to maturity other than those that meet the definition of held at amortized cost-others are classified as held to maturity. These investments are subsequently measured at present value as per Bangladesh Bank guideline. Investments in securities have been revalued as mark to market as at June 30, 2011. The gain of revaluation from the held to maturity securities has been shown in the statement of changes in equity of June 30, 2011. Held for trading (HFT) Investments classified in this category are acquired principally for the purpose of selling or repurchasing in short-trading or if designated as such by the management after initial recognition, investments are measured at fair value and any change in the fair value is recognized. Value of investments has been enumerated as follow: Item Government Treasury Bills Government Treasury Bonds ICBs Debenture Prize bonds Quoted shares Un-quoted shares Investment in listed securities These securities are bought and held primarily for the purpose of selling them in future of held for dividend income. These are reported at cost unrealized gains are not recognized in the profit and loss account. Investment in unlisted securities Investment in unlisted securities is reported at cost under cost method. Adjustment is given for any shortage of book value over cost for determining the carrying amount of investment in unlisted securities. 1.3.4 Property, plant and equipment a) Land and building were revalued on 31.12.2008. Fixed assets are stated at historical cost or revalued amount (whenever applicable) less accumulated depreciation as per BAS -16 Property, Plant and Equipment the cost of acquisition of an assets comprises its purchase price and any directly attributable cost of bringing the assets to its working condition for its intended use inclusive of inward freight, duties and non refundable taxes. b) The bank recognizes in the carrying amount of an item of property, plant and equipment the cost of replacing part of such an item when that cost is incurred if it is probable that the future economic benefits embodied with the item will flow to the company and the cost of the item can be measured reliably. Expenditure incurred after the assets have been put into operation such as repairs and maintenance is normally charged of as revenue expenditure in the period in which it is incurred. c) Depreciation is charged for the year at the following rates on reducing balance method on all fixed assets other than vehicles and software on which straight line depreciation method is followed and no depreciation on land is charged: Applicable accounting Value Present value Present value Present value At cost As per BRPD Circular no.14 dated June 25, 2001 At cost

Category of fixed assets Land Building/Apartment & Structure Furniture & fixture Office equipment & Machineries Software (straight line) Vehicles (straight line)

Rate Nil 2.50% 10.00% to 20.00% 20.00% 20.00% 20.00%

d) For additions during the year, depreciation is charged for the remaining days of the period and for disposal depreciation is charged up to the date of disposal. e) On disposal of fixed assets the cost and accumulated depreciation are eliminated from the fixed assets schedule and gain or loss on such disposal is reflected in the profit and loss account which is determined with reference to the net book value of the assets and net sale proceeds. Other assets a) Provision for other assets Other assets have been clarified as per BRPD circular no. 14 dated 25.06.2001 of Bangladesh Bank and necessary provisions made thereon accordingly and for item not covered under the circular adequate provision have been made considering their realisability. b) Written off other assets Other assets having no realistic prospect of recovery have been written off and full provisions have been kept against the debts. Notional balance against the written off investments have been kept to maintain the detailed memorandum records for written off account. Non-banking assets There are no assets acquired in exchange for loan during the year of financial statements. 1.3.5 Leasing Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risk and rewards of ownership to the lessee as per BAS-17 Lease. The Bank as lessor Amount due from lessees under finance leases are recorded as receivables at the amount of the Banks Loans and Advances in the leases. The Bank as lessee The Bank has no assets under finance or operating Leases. 1.4 1.4.1 Basis for valuation of liabilities and provisions Provision for taxation Provision for current income tax has been made @ 42.5% as prescribed in the Finance Act, 2011 on the accounting profit made by the Bank after considering some of the add backs to income and disallowances of expenditure as per income tax laws in compliance with BAS-12 Income Taxes. 1.4.2 Deferred taxation Deferred tax liabilities are the amount of income taxes payable in future periods in respect of taxable temporary differences. Deferred tax assets are the amount of income taxes recoverable in future periods in respect of deductible temporary differences. Deferred tax assets and liabilities are recognized for the future tax consequences of timing difference arising between the carrying values of assets, liabilities, income and expenditure and their respective tax bases. Deferred tax assets & liabilities are measured

using tax rates and tax laws that have been enacted or substantially enacted at the balance sheet date. The impact on the account of changes in the deferred tax assets and liabilities has also been recognized in the profit and loss account as per BAS -12 Income Taxes. 1.4.3 Dividend payments Interim dividends are recognized when they are paid to shareholders. Final dividend is recognized when it is approved by the shareholders. Dividend payable to the banks shareholders are recognized as a liability and deducted from the shareholders equity in the period in which the shareholders right to receive the payment is established. 1.4.4 Statutory reserve Bank Companies Act, 1991 requires the bank to transfer not less than 20% of its current period profit before tax to reserve until such reserve equals to its paid up capital. 1.4.5 Revaluation reserve When an assets carrying amount is increased as a result of a revaluation, the increased amount credited directly to equity under the heading of revaluation surplus/reserve as per BAS-16: Property, Plant and Equipment. The Bank revalued the assets of Land and Buildings which is absolutely own by the Bank and the increased amount transferred to revaluation reserve. The tax effects on revaluation gain are measured and recognized in the financial statements as per BAS-12: Income Taxes 1.4.6 Benefits to the employees The retirement benefits accrued for the employees of the bank as on reporting date have been accounted for in accordance with the provisions of BAS-19 Employee Benefits. The bank operates retirement benefits scheme for its permanent employees. Elements of which are as under: a) Provident fund Provident fund benefits are given to the permanent employees of the bank in accordance with banks service rules. Accordingly a trust of deed and provident fund rules were prepared. The Commissioner of Income Tax, Taxes Zone-04, Dhaka has approved the provident fund as a recognized provident fund within the meaning of section 2(52), read with the provisions of part - B of the First Schedule of Income Tax Ordinance 1984. The recognition took effect from 16.01.1992. The fund is operated by a Board of Trustees consisting 06 (six) members. All confirmed employees of the bank are contributing 10% of their basic salary as subscription to the fund. The bank also contributes equal amount of the employees contribution. Interest earned from the investments is credited to the members account on yearly basis. b) Gratuity fund The bank has operated funded gratuity fund which was approved by National Board of Revenue on. The fund is operated Board of Trustees. Provision in respect of which is made annually covering all its permanent eligible employees as per BAS-19 Employee Benefits. c) Superannuation fund The bank operates an employees Superannuation Fund Trust by a separate Board of Trustees consisting of 05 (Five) members. The death-cum survival benefits are given to the employees as per the eligibility narrated in the Trust Rules. The fund got recognition from the National Board of Revenue (NBR) effect from 01.01.2004 under the section 3 and 4 of part A of First Schedule of Income Tax Ordinance 1984. The bank contributes to the fund annually as per Superannuation Fund Rules of the bank. d) Benevolent Fund NCCBL employees benevolent fund was established in the year 2007 for the welfare of the distressed employees and their dependents. The employees of the bank contribute to the fund at a rate applicable for each grade from their monthly salary.

1.4.6 Provision for liabilities A provision is recognized in the balance sheet when the bank has a legal or constructive obligation of a result of a past event and it is probable that an outflow of economic benefit will be required to settle the obligation in accordance with the BAS-37 Provisions, Contingent Liabilities and Contingent Assets. 1.5 1.5.1 Revenue recognition Interest income In terms of the provision of the BAS-18 Revenue the interest income is recognized on accrual basis. Interest on loans and advances ceases to be taken in to income when such advances are classified. It is than kept in interest suspense in a memorandum account. Interest on classified advances is accounted for on a cash receipt basis. 1.5.2 Investment income Interest income on investments is recognized on accrual basis. Capital gain on investments in shares is also included in investment income. Capital gain is recognized when it is realized. 1.5.3 Fees and commission income Fees and commission income arises on services provided by the bank are recognized on a cash received basis. Commission charged to customer on letters of credit and letters of guarantee is credited to income at the time of effecting the transactions. 1.5.4 Dividend income on shares Dividend income on shares is recognized during the period in which it is declared and ascertained. 1.6 Reconciliation of inter-bank and inter-branch account Accounts with regard to inter-bank are reconciled regularly and there are no material differences which may affect the financial statements significantly. Un-reconciled entries / balances incase of inter-branch transaction as on the reporting date are not material. 1.7 Risk management The risk of NCCBL is defined as the possibility of losses, financial of otherwise. The risk management of the bank covers core risk areas of banking viz, credit risk, liquidity risk, operational risk and reputation risk arising from money laundering incidences. The prime objective of the risk management is that the bank evaluates and takes well calculative business risks and there by safeguarding the banks capitals, its financial resources and profitability from various business risks through its own measures and through implementing Bangladesh Bank guidelines and following some of the best practices as under: 1.7.1 Credit risk It arises mainly from lending, trade finance, leasing and treasury business. This can be described as potential loss arises from the failure of a counter party to perform as per contractual agreement with the bank. The failure may result from unwillingness of the counter party of decline in his or her financial condition there for the banks credit risk management activities have been designed to address all these issues. The Bank has segregated duties of the officers / executives involved in credit related activities a separate corporate division has been formed at Head office which is entrusted with the duties of maintaining effective relationship with the customers, marketing of credit products, exploring now business opportunities etc. more over, credit approval, administration, monitoring and recovery functions have been segregated. For this purpose, three separate units have been formed within the credit division these are a) Credit risk Management Unit b) Credit Administration Unit and c) Credit monitoring and recovery Unit. Credit risk management Unit is entrusted with the duties of maintaining assets quality, assessing

risk in lending to a particular customer, sanctioning credit, formulating policy / strategy for lending operation, etc. Adequate provision has been made on classified loans is shown in Note 14.4 (a). A thorough assessment is done before sanction of any credit facility at Credit Risk Management unit. The risk assessment includes borrower risk analysis, financial analysis, industry analysis, historical performance of the customer, security of the proposed credit facility, etc. The assessment process starts at Corporate Credit Division by the Relationship Manager / Officer and ends at Credit Risk Management Unit when it is approved / declined by the competent authority. Credit approval authority has been delegated to the individual at executives. Proposals beyond their delegation are approved / declined by the Executives Committee and / or the Management of the Bank. In determining Single borrower / large loan limit, the instructions of Bangladesh Bank are strictly followed. Internal audit is conducted at periodical intervals to ensure compliance of Banks and Regulatory policies. Loans are classified as per Bangladesh Banks guidelines. Concentration of single borrower/large loan limit is shown in Annexure-D. 1.7.2 Liquidity risk The objective of liquidity risk management is to ensure that all foreseeable funding commitments and deposit withdrawals can be met when due. To this end, the Bank is maintaining a diversified and stable funding base comprising of core retail and corporate deposits and institutional balances. Management of liquidity and funding is carried out by Treasury Department under approved policy guidelines. Treasury front office is supported by a very structured Mid office and Back office. Asset Liability Committee (ALCO) monitors the Liquidity management on a regular basis. A written contingency plan is in place to manage extreme situation. 1.7.3 Market risk The exposure of market risk of the bank is restricted to foreign exchange risk, interest rate risk and equity risk. Foreign exchange risk Foreign exchange risk is defined as the potential change in earning due to change in market prices. The foreign exchange risk of the Bank is minimal as all the transactions are carried out on behalf of the customers against underlying L/C commitments and other remittance requirements. No foreign exchange dealing on Banks account was conducted during the year. Treasury Department independently conducts the transactions and the back office of treasury is responsible for verification of the deals and passing of their entries in the books of account. All foreign exchange transactions are revalued at Mark-to-Market rate as determined by Bangladesh Bank at the month-end. All Nostro accounts are reconciled on a monthly basis and the management for its settlement reviews outstanding entry beyond 30 days. The position maintained by the bank at the end of day was within the stipulated limit prescribed by the Bangladesh Bank. Interest rate risk Interest rate risk may arise either from trading portfolio and non-trading portfolio. The trading portfolio of the Bank consists of Government treasury bills of 28 days maturity. The short-term movement in interest rate is negligible or nil. Interest rate risk of non-trading business arises from mismatches between the future yield of an asset and its funding cost. Asset liability Committee (ALCO) monitors the interest rate movement on a regular basis. Equity risk Equity risk arises from movement in market value of equities held. The market value of equities is lesser than cost price against which provision is appearing made in these financial statements.

1.7.4

Reputation risk arising from money laundering incidences Money laundering risk is defined as the loss of reputation and expenses incurred as penalty for being negligent in prevention of money laundering. For mitigating the risks, the bank has a designated Chief Compliance officer at Head office and Compliance officers at branches, who independently review the transactions of the accounts to verify suspicious transactions. Manuals for prevention of money laundering have been established and transaction profile has been introduced. Training is continuously given to all the category of Officers and Executives for developing awareness and skill for identifying suspicious activities / transactions. Operational risk Operational risk may arise from error and fraud due to lack of internal control and compliance. Management through internal control and compliance division controls operational procedure of the Bank. Internal Control and compliance division undertakes periodical and special audit of the branches and departments at the Head Office for review of the operation and compliance of statutory requirements. The Audit Committee of the Board subsequently reviews the reports of the internal control and compliance division.

1.7.5

1.8

Earnings per share Basic earning per share Basic earning per share has been calculated in accordance with BAS-33 Earning per Share which has been shown on the face of the profit and loss account. This has been calculated by dividing the basic earning by the weighted average number of ordinary shares outstanding during the period. Diluted earnings per share No diluted earning per share is required to be calculated for the period as there was no scope for dilution during the year under review.

1.9

Off-balance sheet items & provisions Off balance sheet items have been disclosed under contingent liabilities and other commitments as per Bangladesh Bank guidelines. Provision for Off-balance sheet items is made as per instruction contained in BRPD Circular # 10, dated September 18, 2007 @ 1% on Off-balance sheet items as on June 30, 2011.

1.10

Memorandum items Memorandum items are maintained to have control over all items of importance and for such transactions where the Bank has only a business responsibility and no legal commitment. Stock of Travelers Cheques (TC), Saving Certificates and other fall under the memorandum items.

1.11

Offsetting Financial assets and financial liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis, or realize the asset and settle the liability simultaneously.

1.12

Compliance of Bangladesh Accounting Standards (BAS) and Bangladesh Financial Reporting Standards (BFRS): Name of the BAS Presentation of Financial Statements Inventories Cash Flow Statements Accounting Policies, Changes in Accounting Estimates and Errors BAS no 1 2 7 8 Status Applied Not applicable Applied Applied

Events after the Balance Sheet Date Construction Contracts Income Taxes Property, Plant and Equipment Leases Revenue Employee Benefits Accounting for Government Grants and Disclosure of Government Assistance The Effect of Changes in Foreign Exchanges Rates Borrowing Costs Related Party Disclosures Accounting and Reporting by Retirement Benefit Plans Consolidated and Separate Financial Statements Investments in Associates Interest in Joint Ventures Earnings Per Share Interim Financial Reporting Impairment of Assets Provisions, Contingent Liabilities and Contingent Assets Intangible Assets Investment Property Agriculture Name of the BFRS Share Based Payment Business Combinations Non-current Assets Held for Discontinued Operations Financial Instruments: Disclosure Operating Segments 1.13 Regulatory and legal compliance

10 11 12 16 17 18 19 20 21 23 24 26 27 28 31 33 34 36 37 38 40 41 BFRS no. 2 3 5 7 8

Applied Not applicable Applied Applied Applied Applied Applied Not applicable Applied Applied Applied Applied Applied Applied Not applicable Applied Applied Applied Applied Applied Applied Not applicable Status Not applicable Not applicable Not applicable Applicable Applicable

Sale

and

The Bank complied with the requirements of following regulatory and legal authorities: The Bank Companies Act, 1991; The Companies Act, 1994; Rules and Regulations issued by Bangladesh Bank; The Securities and Exchange Rules 1987, The Securities and Exchange Ordinance 1969, The Securities and Exchange Commission Act, 1993, The Securities and Commission (Public Issue) Rules 2006; e) The Income Tax Ordinance, 1984; f) The VAT Act, 1991; g) Other Laws & Regulations as applicable. a) b) c) d)

1.14

Information and communication technology NCCBL follows the guideline stated in BRPD Circular no. 14 dated 23 October 2005 regarding Guideline on Information and Communication Technology for Scheduled Banks. IT management deals with IT policy documentation, internal IT audit, training and insurance. IT operation management covers the dynamics of technology operation management including change management, assets management and operating environment procedures management. The objective is to achieve the highest levels of technology service quality by minimum operational risk. Physical security involves providing environmental safeguards as well as controlling physical access to equipment and data. In a) b) c) d) e) f) g) order to ensure that information assets are protected against risk, there are controls over : Password User ID maintenance Input Network security Data encryption Virus protection Internet and e-mail

The Business Control Plan (BCP) is formulated to cover operational risk and taking into account the potential for wide area disasters, data center disasters and the recovery plan. The BCP takes into account the backup and recovery process. 1.15 Asset Liability Management The Assets Liability Committee (ALCO) of the Bank monitors Market risk and liquidity risks of the bank. The Market risk is defined as potential charge in earnings due to change in rate of interest, foreign exchange rates which are not of trading nature. ALCO reviews liquidity requirement of the Bank, the maturity of assets and liabilities, deposit and lending, pricing strategy and the liquidity contingence plan. The primary objective of the ALCO is to monitor and avert significant volatility in Net Interest Income (NII), investment value and exchange earnings. 1.16 Segment reporting The bank has only one reportable business segment and operation of the bank is within the geographical territory of Bangladesh. Hence segment reporting in accordance with BFRS-8 Operating Segment is not applicable. 1.17 Events after the balance sheet date Events after the balance sheet date that provide additional information about the banks position at the balance sheet date are reflected in the financial statements. Events after the balance sheet date are not adjusting event are disclosed in the notes when material. 1.18 Assets pledge as security The bank has secured liability as mentioned in notes 12.01 and there was assets pledge as securities against liabilities.

1.19

Credit rating of the bank As per the BRPD instruction circular no. 6 dated July 5, 2006, the bank has done its credit rating by the Credit Rating Agency of Bangladesh (CRAB) based on the financial statements dated December 2010, the following rating has been awarded: Date of rating 23.06.2011 Long term A1 Short term ST-2

Entity Rating 1.20

Internal Control and Compliance Operational loss may arise from error and fraud due to lack of internal control and compliance. Management through Internal control and compliance Division controls operational procedure of the Bank. Internal control and compliance Division undertakes periodical and special audit of the branches and departments at Head Office for review of the operation and compliance of statutory requirement. The Audit Committee of the Board subsequently reviews the reports of the internal control and compliance division.

1.21

Audit committee The Audit committee of the Board of Directors of the Bank formed in accordance with Bangladesh Banks BRPD circular Letter No. 12 dated 23 December 2002 with its members as under : Sl. No. Name Status with the Bank Status with Educational Qualifications the committee Chairman M.A. (Economics) B.Sc. Engg. Member M.Sc.(Math) Member Member B.Com. Member Ph.D. conducted 03 (three) meetings in which among

i) Mr. Mahbubul Alam Tara Director ii) Mr. Abdus Salam Director iii) Mr. Ainul Kabir Director iv) Mr. Khairul Alam Chaklader Director v) Professor Shahid Uddin Ahmed Director During the period, the Audit committee of the Board others, the following issues where discussed: -

The committee studied Bangladesh Banks comprehensive inspection reports of branches as well as of Head Office accounts, reviewed compliance thereof and gave necessary instructions. The committee reviewed the audit and inspection reports of different branches as conducted by the Banks internal Audit and Inspection Department from time to time and gave necessary instructions to the management. The Committee perused and noted Bangladesh Banks policy Circulars/ Circular Letters and other listing regulations in force and gave necessary instructions.

Number of Employees Number of Employees at June 30, 2011 was 1847; (2010:1865) who were in receipt of remuneration for that year which in the aggregate was not less than Tk. 36,000 per annum and those employed for a part of that year who were also in receipt of remuneration of not less than Tk.3,000 per month.

General Figures appearing in these Financial Statements have been rounded off to the nearest Taka. Previous years figures whenever considered necessary have been rearranged in order to conform to current years presentation. Stock of Travelers Cheques, Shanchaya patras are not reflected as Off-balance Sheet items in the Financial Statements.

June 30, 2011 Taka 4

December 31, 2010

Taka

Cash in hand ( Including Foreign Currencies) Local currency Foreign Currencies


758,535,254 3,971,170 762,506,424 722,585,828 9,006,915 731,592,743

4(a)

Consolidated Cash in hand Cash in hand (Including Foreign Currencies) NCC Bank Limited (Note-4 ) NCCB Securities and Financial Services Limited

762,506,424 5,948 762,512,372

731,592,743 731,592,743

Balance with Bangladesh Bank and its agent bank(s) Local currency Foreign currencies Sonali Bank Ltd. as agent of Bangladesh Bank ( Local Currency )-note 5.1

4,503,491,172 345,528,072 4,849,019,244 244,072,156 5,093,091,400

5,125,603,170 88,116,919 5,213,720,089 286,294,421 5,500,014,510

5.1

Sonali Bank Ltd. as agent of Bangladesh Bank ( Local Currency ) Cox's Bazar Branch Feni Branch Laxmipur Branch Moulvibazar Jessore Branch Chaumuhani Branch Madaripur Branch Chakaria Branch Comilla Branch Joydevpur Branch Mymensingh Branch Tangail Branch Naogaon Branch Kushtia Branch Narayangonj Branch Brahmanbaria Branch Narsingdi Branch Maijdee Branch
11,472,602 24,999,826 15,222,152 179,621 52,500,085 8,503,906 4,813,971 8,078,424 22,866,901 2,574,236 40,160,026 21,795,419 6,565,294 3,477,799 13,977,218 2,101,471 861,681 3,921,524 244,072,156 43,200,925 15,531,864 18,081,375 3,023,615 30,092,311 10,785,499 1,782,075 130,547 8,648,582 6,728,401 22,388,625 44,682,738 7,593,288 6,555,207 58,461,260 4,601,761 3,735,431 270,917 286,294,421

5.2

Cash Reserve Requirement (CRR) and Statutory Liquidity Ratio (SLR)


Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) have been calculated and maintained in accordance with the Section 33 of the Bank Companies Act 1991 and subsequent BCD Circular No.13 dated May 24, 1992; BRPD Circular No. 12, dated September 20, 1999, BRPD Circular No. 22 dated November 6, 2003, BRPD Circular No. 05 dated July 21, 2004 and DOS Circular no-06 March 23, 2005. BRPD Circular No. 11 & 12 dated 25 August 2005, MPD circular no. 116/2010-1712 & 04 dated December 2010. The cash reserve requirement on the Bank's time and demand liabilities @ of 6% has been calculated and maintained with Bangladesh Bank in current account and 19% Statutory Liquidity ratio including CRR on same liabilities has also been maintained in the form of treasury bills, treasury bonds and debenture including FC balance with Bangladesh Bank. Both the reserves maintained by the Bank are in excess of the statutory requirements as shown below:

June 30, 2011 Taka 5.3

December 31, 2010

Taka

Cash Reserve Requirement ( CRR) 6% of average Demand and Time Liabilities: Required Reserve Actual Reserve held Surplus/ (deficit)
4,252,600,000 4,503,491,172 250,891,172 4,044,500,000 5,125,603,170 1,081,103,170

5.4

Statutory Liquidity Ratio ( SLR) 19% of average Demand and Time Liabilities: Required Reserve (including CRR) Actual Reserve held (including CRR) Surplus/ (deficit) Total required reserve Total actual reserve held Total Surplus/(deficit)
13,101,700,000 23,777,321,707 10,675,621,707 13,691,100,000 23,777,321,707 10,086,221,707 12,792,100,000 16,493,914,140 3,701,814,140 12,792,100,000 16,493,914,140 3,701,814,140

Balance with other Banks and Financial Institutions : In Bangladesh (Note -6.01 ) Outside Bangladesh ( Note-6.2)
167,227,212 612,808,811 780,036,023 331,517,804 235,808,073 567,325,877

6.1

In Bangladesh Current Accounts with Sonali Bank Ltd. ICB Islamic Bank Ltd. Janata Bank Ltd. IFIC Bank Ltd. Uttara Bank Ltd. Islami Bank Bangladesh Ltd. Pubali Bank Ltd. Commercial Bank of Ceylon United Commercial Bank Ltd. National Bank Ltd. Southeast Bank Ltd. Standard Chartered Bank Dutch Bangla Bank Ltd. Agrani Bank Ltd. Rupali Bank Ltd. BRAC Bank Limited Short-term Deposit Accounts Janata Bank Ltd. Dutch Bangla Bank Limited Fixed Deposit Accounts with ICB Islamic Bank Ltd. National Bank of Pakistan Lanka Bangla Finance BD Industrial Finance Co Ltd International Leasing & Financial Services limited

36,168,399 589,173 14,749,453 2,000 240,555 11,374,804 279,535 1,077,500 212,318 3,048 6,531,777 1,280,174 8,420,905 6,109,979 539,964 87,579,584 60,208 1,184,969 1,245,177 20,902,451 20,000,000 37,500,000 78,402,451 167,227,212

21,505,633 600,023 13,340,763 2,000 242,055 589,849 281,035 1,077,500 213,818 540 5,140,451 422,310 398,228 5,793,333 49,607,538 2,122,846 1,084,969 3,207,815 21,202,451 100,000,000 70,000,000 37,500,000 50,000,000 278,702,451 331,517,804

June 30, 2011 Taka

December 31, 2010

Taka

6.2

Outside Bangladesh (NOSTRO Accounts) Current Accounts (non-interest bearing) with: Standard Chartered Bank, Singapore Standard Chartered Bank, Japan HSBC BANK N.Y Bank of Tokyo Mitsubishi, Japan Myanma Investment & Co, Mayanmar Bank of Tokyo Mitsubishi, Kolkata American Express Bank, Colombo BANCO ITAU United Bank Ltd., Karachi AXIS Bank Kolkata Nepal Bangladesh Bank, Nepal HSBC, Kolkata Bank of Bhutan, Phuentsholing Standard Chartered Bank, London Habib Metropoliton Bank Uni Credio Italiano Spa Commerrz Bank AG UBAF,JAPAN ICIC Bank, HKK ICIC Bank, Kolkata Wachovia NA Nova Scotia Canada Current Accounts (interest bearing) with: Standard Chartered Bank, New York Standard Chartered Bank, London Citi Bank NA Mashreq Bank ,New York

939,553 3,171,555 996,434 7,499,980 7,405,000 24,541,579 568,178 1,318,217 3,970,945 8,634,165 4,499,645 2,452,358 5,339,822 15,660,955 1,964,731 382,970 7,855,855 4,254,030 27,328,249 8,564,322 137,348,543 234,082,216 54,786,451 81,840,880 104,750,721 475,460,268 612,808,811

533,754 1,369,534 8,944,497 905,912 6,632,299 7,035,000 26,800,395 4,897,467 1,965,312 6,462,083 4,050,339 18,888,751 4,060,432 1,469,082 9,891,641 4,645,956 1,041,928 157,521 11,604,349 3,803,014 125,159,266 81,801,661 28,847,146 110,648,807 235,808,073

Annexure 'B' may kindly be seen for details 6.3 Balance with other banks and financial institutions (according to remaining maturity grouping) Payable : Payable on demand Up to one month Over one month but not more than three months Over three months but not more than six months Over six months but not more than one year Over one year but not more than five years Over five years 6(a) Consolidated Balance with other Banks and Financial Institutions In Bangladesh NCC Bank Limited (Note-6.1 ) NCCB Securities and Financial Services Limited Out side Bangladesh NCC Bank Limited (Note-6.2 ) NCCB Securities and Financial Services Limited
700,388,395 21,245,177 37,500,000 20,902,451 780,036,023 285,415,611 153,207,815 70,000,000 37,500,000 21,202,451 567,325,877

167,227,212 3,223,083 170,450,295 612,808,811 612,808,811 783,259,106

331,517,804 331,517,804 235,808,073 235,808,073 567,325,877

June 30, 2011 Taka

December 31, 2010

Taka

Money at Call and short notice : Banking Company Non-banking financial institutions
-

Investments : Government Securities-Note 8(a) Other Investments-Note 8(b)


17,921,723,883 715,279,898 18,637,003,781 10,262,306,887 718,501,349 10,980,808,236

i)

Investment classified as per Bangladesh Bank Circular Held for trading (HFT) Held to maturity (HTM) Other Securities
11,380,941,926 6,533,916,457 729,616,850 18,644,475,233 7,177,654,429 3,079,216,458 739,374,266 10,996,245,153

a) Government Securities: Treasury bills: 91 days Treasury bills 182 days Treasury bills 364 days Treasury bills Treasury bonds: 5 years Treasury bonds 10 years Treasury bonds 15 years Treasury bonds 20 years Treasury bonds Prize Bonds b) Other investments: Zero Coupon Bonds Other Bonds Beximco Pharmaceuticals (Debenture ) Investment in shares (Note 8.3) Less: Provision for diminution in the market value of shares (Note-8.1)

318,927,649 1,526,703,960 1,580,330,857 3,425,962,466

139,030,051 139,030,051

4,158,228,891 6,163,697,654 2,567,949,447 1,599,019,925 14,488,895,917 6,865,500 17,921,723,883

2,072,930,847 5,934,315,654 1,345,735,837 764,858,498 10,117,840,836 5,436,000 10,262,306,887

198,110,683 60,570 615,942,668 (98,834,023) 517,108,645 715,279,898 18,637,003,781

119,296,471 100,000,000 60,570 514,498,115 (15,353,807) 499,144,308 718,501,349 10,980,808,236

8.1

Provision for Investment fluctuation in shares Opening Balance Add: Provision made during the year Less: Provision amount Transferred to P/Loss A/c Less: Adjusted during the year Closing Balance
15,353,807 83,480,216 98,834,023 14,589,758 764,049 15,353,807

June 30, 2011 Taka 8.2

December 31, 2010

Taka

Maturity grouping of investments Demand Up to one month Over one month but not more than three months Over three months but not more than six months Over six months but not more than one year Over one year but not more than five years Over five years
290,195,753 787,357,102 1,173,140,531 560,823,217 1,373,670,223 4,690,881,759 9,760,935,196 18,637,003,781 238,091,108 19,401,385 139,029,911 2,292,227,318 8,292,058,514 10,980,808,236

8.3

Investment in Share: Quoted: Agrani Insurance Ltd Prime Textile Spinning Mills Ltd. Olympic Industries Ltd. Asia Insurance Ltd. Al-Arafa Islami Bank Ltd. Bata Shoe Co. (BD) Ltd. BSRM Steel Ltd. Eastern Cables Ltd. DBH 1st Mutual Fund National Bank Limited Eastland Insurance Ltd Green Delta Insurance Co. Bangladesh Auto Cars Ltd. Eagle Star Textile Mills Ltd. Bank Asia Ltd Exim Bank Ltd Bay Leasing & Investment Premier Leasing Ltd. Summit Power Ltd. MBL 1st Mutual Fund IDLC SEBL 1st Mutual Fund Green Delta Mutual Fund Prime Bank Ltd. Lanka Bangla Finance Ltd. Uttara Bank Ltd. Arab Bangladesh Bank Ltd ICB Islami Bank Ltd. DESCO Ltd. Jamuna Bank Ltd. Meghna Petroleum Ltd. Power Grid Co. Ltd. Pubali Bank Limited Balance Carried forward
9,794,937 300,000 511,650 6,399,750 29,564,701 3,008,892 6,736,541 277,852 5,061,712 11,650 7,484,686 223,932 4,227,951 5,150,550 337,500 42,620,962 13,681 12,635,358 10,000,000 11,685,708 10,000,000 10,000,000 11,223 8,781,367 934,833 1,562,905 5,490,645 9,945,178 8,509,524 3,292,656 2,004,763 24,453,435 241,034,542 8,738,938 300,000 511,650 6,137,650 26,719,575 3,008,892 4,599,429 277,852 4,000,000 5,984,195 11,650 2,691,070 223,932 4,227,951 337,500 13,681 12,919,344 9,255,159 99,825 3,444,450 934,833 870,280 5,490,645 9,945,178 3,730,599 3,292,656 18,277,987 136,044,921

June 30, 2011 Taka

December 31, 2010

Taka 136,044,921 11,400,286 1,211,893 757,781 17,923,420 6,053,665 7,806,380 8,040,555 2,788,029 35,577,269 2,471,700 3,504,400 2,325,945 2,184,864 238,091,108 2,000,000 400,385 18,000,000 991,199 7,448,523 19,001,000 17,000,000 25,500,000 150,000,000 1,900,000 10,000,000 10,000,000 10,000,000 4,165,900 276,407,007 514,498,115

Balance brought forward Square Pharma Standard Bank Ltd. Fareast Life Insurance Ltd. Islami Bank Bangladesh Ltd. Navana CNG Ltd. Grameenphone Ltd. Summit Alliance Port Ltd. Square Textiles Ltd Titas Gas Transmission South East Bank Ltd. Khulna Power Co. Ltd. Laferge Surma Cement Ocean Containers Ltd. RAK Ceramics Ltd. Karnaphuly Insurance Ltd. Shahjalal Islami Bank Ltd. Bangladesh General Insurance Co. Peoples Leasing and Finance Un- quoted: CDBL Dhaka Stock Exchange Ltd Venture Investment Partner Bangladesh Ltd. Swift Dhaka Vegetable Oil Industries Ltd. Chittagong Stock Exchange Ltd. Summit Uttaranchal PCL Summit Purbanchal PCL Nccbl Mutual Fund-1 Summit Power Ltd SEBL 1st Mutual Fund MBL 1st Mutual Fund Green Delta Mutual Fund Dun & Bradstreet Rating Agency

241,034,542 114,448 704,400 56,132 17,923,420 7,206,040 7,806,380 9,368,665 13,350,279 37,868,869 2,471,700 3,504,400 2,325,945 3,046 1,701,470 7,655,725 758,000 28,250,245 382,103,706 8,833,340 18,000,000 991,199 7,448,523 17,000,000 25,500,000 150,000,000 1,900,000 4,165,900 233,838,962 615,942,668

8(c)

Consolidated Investments Government Securities NCC Bank Limited (Note-8.a ) NCCB Securities and Financial Services Limited Other Investments NCC Bank Limited (Note-8.b ) NCCB Securities and Financial Services Limited
715,279,898 19,401,385 734,681,283 18,656,405,166 718,501,349 718,501,349 10,980,808,236 17,921,723,883 17,921,723,883 10,262,306,887 10,262,306,887

June 30, 2011 Taka 9

December 31, 2010

Taka 59,632,249,645 3,597,891,983 63,230,141,628

Loans and Advances Loans,Cash Credits,Overdrafts etc.(Note-9.01) Bills Purchased and Discounted (Note-9.2) Loans, Cash Credits, Overdrafts etc. Inside Bangladesh: Overdraft Cash credit Loan - general Transport loan House building loan Loan against trust receipt Loan against Imported Merchandise Loan against Investment Loan against packing credit Project loan Demand loan Lease Finance Payment against document Consumer Finance Scheme Housing Loan under B.Bank Refinance Scheme Loan Revolving Staff Loan Small Business Loan House Renovation Loan Personal Loan Scheme Term Loan (Small,Medium & Large) Agri Credit Festival Loan Special Housing Loan Credit Card Forced Loan Short Term Loan Retail Loan NCCB- Garments wear & Foot wear Cluster Education Loan Scheme Outside Bangladesh:

63,486,428,450 3,203,103,128 66,689,531,578

9.1

12,342,338,619 10,828,853,618 6,678,709,113 393,249,033 1,566,535,685 12,161,064,093 84,873,102 10,480 169,746,455 158,758,405 1,074,075 1,169,362,502 2,124,279,897 1,210,483 38,939,883 384,266 515,087,873 840,531,456 78,962,653 14,215,082 11,325,083,396 244,619,007 62,686,800 1,037,238,441 229,370,491 580,056,360 809,009,674 14,938,109 14,003,741 1,235,658 63,486,428,450 63,486,428,450

11,690,527,439 9,710,795,572 6,285,091,051 399,830,254 1,508,750,926 11,535,188,764 64,152,677 10,500 164,860,309 297,487,398 12,380,294 964,245,222 2,104,825,226 1,333,336 41,309,112 1,037 518,377,438 810,803,851 91,676,699 16,379,763 10,726,234,410 269,576,890 73,869,925 1,046,796,732 215,541,374 538,085,843 534,572,412 5,520,772 4,024,419 59,632,249,645 59,632,249,645

9.2

Bills Purchased and Discounted Inside Bangladesh: Inland bills purchased Local documentary bills purchased Outside Bangladesh: Foreign bills purchased Foreign documentary bills purchased

10,498,724 2,997,448,647 3,007,947,371 10 195,155,747 195,155,757 3,203,103,128 66,689,531,578

2,310,763 3,379,320,119 3,381,630,882 10 216,261,091 216,261,101 3,597,891,983 63,230,141,628

June 30, 2011 Taka 9.3

December 31, 2010

Taka 63,230,141,628 1,425,280,000 265,448,405 1,690,728,405 61,539,413,223

Net Loans and Advances Gross Loans and Advances Less: Non-performing loans and advances Interest suspense

66,689,531,578 3,225,499,000 302,895,611 3,528,394,611 63,161,136,967

9.4

Residual maturity grouping of loans and advances including bills purchased and discounted bills purchased and discounted Repayable on demand Up to one month Over one month but not more than three months Over three months but less than one year Over one year but less than five years Above five years
581,130,435 12,889,850,206 13,953,936,557 26,058,084,555 7,974,092,997 5,232,436,828 66,689,531,578 550,466,137 11,746,721,943 13,704,166,666 21,673,219,120 9,646,426,492 5,909,141,270 63,230,141,628

9.5

Loans and advances including bills purchased and discounted classified into the following broad categories In Bangladesh : Loans Cash credit Overdraft Bills Purchased & Discounted Outside Bangladesh (Bills Purchased & Discounted)
40,315,236,213 10,828,853,618 12,342,338,619 3,007,947,371 66,494,375,821 195,155,757 66,689,531,578 38,230,926,634 9,710,795,572 11,690,527,439 3,381,630,882 63,013,880,527 216,261,101 63,230,141,628

9.6

Loans and advances on the basis of significant concentration including bills purchased and discounted classified into the following broad categories I) Advances to allied concerns of Directors of the Bank II) Advances to customers' group-wise clients a) Import Financing b) Export financing c) House Building Loan d) Consumers credit scheme e) Small and Medium Enterprise (SME) f) Special program loan g) Staff Loans h) Others III) Industrial loans a) Agriculture b) Industry c) Construction d) Transport and Communication e) Storage f) Business g) Others

69,195,000 5,617,187,482 6,190,348,198 2,565,180,324 306,332,000 9,480,139,000 136,164,291 515,087,873 1,960,469,667 26,770,908,835 545,275,125 25,098,857,572 1,432,658,038 421,114,852 293,002,198 11,833,929,829 224,590,129 39,849,427,743 66,689,531,578

52,966,452 5,556,397,235 3,779,699,125 2,757,288,562 307,448,468 8,940,710,658 129,856,422 518,377,437 1,729,558,158 23,719,336,065 525,903,854 25,844,987,354 1,117,858,587 400,329,681 300,657,328 11,053,962,349 214,139,958 39,457,839,111 63,230,141,628

June 30, 2011 Taka 9.7

December 31, 2010

Taka

Number of clients with outstanding amount and classified Loans and advances exceeding 10% of total capital of the Bank. Number of the clients Amount of outstanding Advances Amount of classified advances Measures taken for recovery Annexure 'D' may kindly be seen for details.
9 15,225,300,000 6 8,714,500,000 -

9.8

Loans and advances on the basis of geographical location wise Urban Dhaka Division Chittagong Division Rajshahi Division Rangpur Division Sylhet Division Khulna Division Barisal Division Rural Dhaka Division Chittagong Division Rajshahi Division Rangpur Sylhet Division Khulna Division Barisal
775,752,370 1,272,374,058 88,752,556 601,718,477 294,212,301 3,032,809,762 66,689,531,578 749,305,306 927,209,872 46,712,852 554,424,632 369,938,815 2,647,591,477 63,230,141,628 60,634,171,628 1,170,690,000 143,404,000 60,831,000 1,221,045,000 63,230,141,628 43,609,076,877 16,432,400,002 682,738,436 429,730,409 601,397,884 1,897,879,403 3,498,805 63,656,721,816 40,954,241,178 16,179,816,277 756,552,665 396,806,030 618,250,060 1,676,883,941 60,582,550,151

9.9

Classification of Loans and advances Unclassified Standard (including staff loans) Unclassified Special Mention Account Sub-standard Doubtful Bad/Loss

63,185,559,578 278,473,000 1,028,729,000 474,540,000 1,722,230,000 66,689,531,578

9.10 i) ii) iii) iv)

Particulars of loans and advances Loans considered good in respect of which the bank is fully secured. Loans considered good for which the bank holds no other security than the debtor's personal security. Loans considered good and secured by the personal security of one or more parties in addition to the personal security of the debtors. Loans considered doubtful or bad not provided for.
54,307,695,334 7,529,248,115 4,852,588,129 66,689,531,578 51,895,056,119 7,137,073,880 4,198,011,629 63,230,141,628

June 30, 2011 Taka * v)

December 31, 2010

Taka 518,377,438

Debts due by directors or officers of the bank or any of them either severally or jointly with any other persons. Debts due by companies or firms in which the directors of the Bank are interested as directors, partners or managing agent or in case of private companies as members.

515,087,873

vi)

69,195,000

52,966,452

vii)

Maximum total amount of advances, including temporary advances made at any time during the year to directors or managers or officers of the bank or any of them either severally or jointly with any other persons.
515,087,873 518,377,438

viii)

Maximum total amount of advances, including temporary advances, granted during the year to the companies or firms in which the directors of the bank are interested as directors, partners or managing agents or, in case of private companies as members.
69,195,000 3,225,499,000 594,298,001 52,966,452 1,425,280,000 22,578,000

ix) x)

Due from banking companies


Classified loans for which interest/profit not credited to income

a) Increase/(decrease) of provision (specific) during the year

* Amount represents loans to employees of the Bank only. b) Amount of provision kept against the amount classified as bad/loss at the Balance Sheet preparing date. c) Amount of interest charged in interest suspense account
xi) 303,702,690 265,448,405 1,050,490,000 703,841,000

Cumulative amount of written off debt Opening balance as on 1 January Add: Amount of debt written off during the Period Closing balance as on 30 June
2,085,206,013 2,085,206,013 1,658,506,255 426,699,758 2,085,206,013

xii)

Amount of written off debt against which law suit has been filed for its recovery during the period
91,112,193

9.11

Outstanding Bad & Loss Loans to be Written off Bangladesh Bank issued a circular no.02 dated 13 January 2003 instructing all the banks in the country to write off bad & loss loans which have passed five years after its classification and legal actions have been taken against all those default borrowers with an immediate effect. In compliance with the circular, the Bank formed a Debt Collection Unit in its Head Office from where monitoring has been made accordingly. During the period, the Bank not allowed write off against which legal actions have not been lying with the money suit court. In this connection, branches have been maintaining separate ledger for all individual cases. The debt collection unit will follow-up the realisation of such debts in future also and time to time a progress report to be given to the management by the branches.

9.12 Bills purchased and discounted: a) Payable: In Bangladesh Outside Bangladesh


3,007,947,371 195,155,757 3,203,103,128 3,381,630,882 216,261,101 3,597,891,983

June 30, 2011 Taka

December 31, 2010

Taka

b)

Bills purchased & discounted on the basis of the residual maturity grouping Payable: Within one month Over one month but less than three months Over three months but less than six months Over six months
361,765,000 1,984,366,272 855,995,856 976,000 3,203,103,128 1,088,654,000 1,870,965,000 619,961,000 18,311,983 3,597,891,983

9(i) Consolidated Loans and Advances Loans, Cash Credits, Overdrafts etc.(Note-9.1) NCC Bank Limited NCCB Securities and Financial Services Limited. Less : Loan to NCCB Securities and Financial Services Limited. Bills Purchased and Discounted (Note-9.2) NCC Bank Limited Less : Loan to NCCB Securities and Financial Services Limited.
3,203,103,128 3,203,103,128 67,084,100,333 3,597,891,983 3,597,891,983 63,230,141,628 63,486,428,450 2,823,976,005 66,310,404,455 2,429,407,250 63,880,997,205 59,632,249,645 59,632,249,645 59,632,249,645

10

Fixed assets including premises, furniture and fixtures Cost/valuation Land Structure ( on land II) Furniture and fixtures Machinery and Equipment Vehicles Total Cost / Valuation Less: Accumulated depreciation Net book value at the end of the year Annexure 'A' may kindly be seen for details.
452,423,608 414,335,133 276,563,556 453,704,669 65,316,801 1,662,343,767 371,368,248 1,290,975,519 413,139,440 414,335,133 236,983,642 388,912,606 68,915,337 1,522,286,158 330,792,968 1,191,493,190

10(a)

Consolidated Fixed Assets including premises,furniture and fixture NCC Bank Limited (Note-10) Less : Fixed Assets in Subsidiaries Company NCCB Securities and Financial Services Limited
1,290,975,519 (15,523,731) 1,275,451,788 14,680,184 1,290,131,972 1,191,493,190 1,191,493,190 1,191,493,190 16,538,351 1,386,944 1,662,909 88,740,104 82,735,210 2,350,000 1,017,660 229,539,391 18,441,288 704,016,029 1,146,427,886

11

Other Assets Stationery in hand Stamps and stamped forms in hand Security deposits Advance against rent Suspense account (Note 11.1 ) Commission receivable Dividend receivable Interest receivable ( Note 11.2 ) Prepaid Expense(Soft ware) Others ( Note 11.3 ) Balance carried forward

25,429,470 1,683,243 1,750,789 92,143,297 64,311,732 48,628,955 428,869,132 25,962,156 516,416,229 1,205,195,003

Balance brought forward Discount receivable Prepaid Expenses ATM Adjustment Visa Local Building Construction Investment in Subsidiary Receivable from sale proceeds of Share 11.1 Suspense Account Encashment Shanchaypatra awaiting realisation DD cancelled Cash Remittance DD paid without advice Clearing adjustment 11.2 Interest receivable : On loans and advances On Treasury Bill/Bond On bank balances/Financial Institutions 11.3 Others Advance against TA/DA Legal expenses Waiver of interest Money Gram Proposed Branches expenses Prefunding to TMSS Zenj Exchange T.C. Buying UAE Exchange Sundry debtors Foreign Remittance Payment Project Protested bill Prefunding to Foreign Remittance Xpress Money Al-Fardan Exchange Co.L.L.C Habib Quarter Placid Express Arab National Bank (KSA) Advance against Salary Wall Street First Solution U.K. Kay Maks International Majan Exchange IME (M) SDN.BHD. Three Star Federal Exchange Al Zaman Exchange Repo Adjustment account Advance for booking money agt.DSE Tower Advance for Purchase of Bank Property Others

June 30, 2011 Taka 1,205,195,003 8,104,396 261,410 126,717 399,938 191,197,688 250,000,000 65,922,968 1,721,208,120 29,425,401 44,600 11,439,168 7,547,254 15,855,309 64,311,732 12,662,958 415,080,341 1,125,833 428,869,132 442,167 253,259 4,404 29,113,977 648,100 15,312,115 797,755 21,000 1,530,618 370,884,313 4,997 2,245,789 2,110,326 4,627,214 17,223,924 1,793,748 5,748,621 1,489,137 32,000 373,319 281,900 1,605,598 35,173 21,000 19,851 850,000 58,862,814 83,110 516,416,229

December 31, 2010

Taka 1,146,427,886 6,917,890 41,500 162,217 153,320,691 45,931,185 1,352,801,369 35,055,088 23,600 28,171,886 6,516,705 12,967,931 82,735,210 223,370,640 6,168,751 229,539,391 43,055 236,109 4,404 29,622,649 4,626,100 19,177,949 883,966 98,626 1,985,208 569,231,642 2,245,789 2,125,020 8,159,443 11,775,203 2,006,103 2,674,163 3,237,877 411,000 13,060 8,000 3,000 38,563 850,000 44,559,100 704,016,029

June 30, 2011 Taka

December 31, 2010

Taka

11(a) Consolidated other Assets NCC Bank Limited (Note-11) Less : Investment in Subsidiary Company Less : Other transaction in Subsidiary Company NCCB Securities and Financial Services Limited 12 Borrowing from other Banks, Financial Institutions and agents in Bangladesh Bangladesh Bank SME Foundation South East Bank Ltd Citi Bank NA Standard Chartered Bank State Bank of India Habib Bank Ltd Pubali Bank Ltd. Commercial Bank of Cylon United Commercial Bank Ltd. The Trust Bank Ltd Outside Bangladesh: ICICI Bank, Kolkata Standard Chartered Bank, London Mashreq Bank Kolkata Standard Chartered Bank, Kolkata WACHOVIA NA Citi Bank NA HSBC Bank , New York
1,721,208,120 (249,999,900) (45,578,955) 1,425,629,265 23,815,945 1,449,445,210 1,352,801,369 1,352,801,369 1,352,801,369

1,495,304,191 20,000,000 300,000,000 30,000,000 500,000,000 70,000,000 100,000,000 250,000,000 140,000,000 100,000,000 1,474,887 3,006,779,078 7,698,430 14,640 8,965,872 1,355,925 18,034,867 3,024,813,945

1,570,189,614 915,952 1,571,105,566 31,171,190 379,250 139,259,404 56,549,653 15,104,584 33,459,049 275,923,130 1,847,028,696

Annexure 'C' may kindly be seen for details. 12.01 Security against borrowings from other banks, financial institutions and agents: Secured Unsecured

3,005,304,191 19,509,754 3,024,813,945

1,570,189,614 276,839,082 1,847,028,696

1.00

Borrowings from other banks, financial institutions and agents (according to remaining maturity grouping) Payable : On demand In not more than three months In more than three months but not more than one year In more than one year but not more than five years Above five Years Deposits and other Accounts Current deposits and other accounts Current deposits Sundry deposits (note 13.4)

1,509,509,754 58,126,617 142,228,627 1,003,173,138 311,775,809 3,024,813,945

276,839,082 40,459,366 155,972,593 990,820,544 382,937,111 1,847,028,696

13

4,458,646,708 3,306,927,479 7,765,574,187

4,967,282,085 2,776,641,149 7,743,923,234

June 30, 2011 Taka

December 31, 2010

Taka 7,477,106,648 39,313,895,416 3,322,195,044 5,312,740,230 1,109,703,942 151,042,003 900,000 2,518,357,880 12,414,939,099 922,749,305 2,988 88,628,087 1,011,380,380 67,961,244,777 9,428,243,212 9,428,243,212

Saving deposits Fixed deposits Term deposits Short term deposits Special savings scheme Special deposit scheme Premium term deposits Instant earning term deposits Money Double Program 13.1 Bills Payable: Payment Order (issued) Pay slip Demand draft

7,571,500,817 43,495,868,872 6,091,840,130 5,960,430,215 1,368,604,180 163,722,246 2,000,399 3,030,162,494 16,616,759,664 881,385,150 2,988 138,540,066 1,019,928,204 76,469,631,744

13.2 (a) Demand deposits From other banks Other than banks 13.2 (b) Other deposits: From other banks In Fixed Deposits Accounts: Sonali Bank Limited Bangladesh Development Bank Limited Other than banks

9,361,128,671 9,361,128,671

500,000,000 75,000,000 575,000,000 66,533,503,073 76,469,631,744

500,000,000 70,000,000 570,000,000 57,963,001,565 67,961,244,777

13.3(a) Residual maturity grouping of Deposits: From other Banks Payable: On demand Within one month In more than one month but less than six months In more than six months but less than one year In more than one year but within five years In more than five years but within ten years

575,000,000 575,000,000

570,000,000 570,000,000

13.3 (b) From other than Banks Payable: On demand Within one month In more than one month but less than three months In more than three months but less than one year In more than one year but within five years In more than five years but within ten years

9,361,128,671 5,827,612,809 14,962,732,344 25,687,441,247 12,189,220,960 7,866,495,713 75,894,631,744 76,469,631,744

9,428,243,212 8,481,537,217 14,636,233,461 19,167,408,026 8,006,304,707 7,671,518,154 67,391,244,777 67,961,244,777

June 30, 2011 Taka

December 31, 2010

Taka 118,844,583 514,121,302 750,596,856 9,693,520 111,987 187,088,752 15,625,037 6,013,625 74,447,224 658,033,249 123,579,411 12,712,680 1,619,548 52,218,326 44,462,120 1,334,763 978,929 7,138,134 19,591,378 2,816,003 6,046,049 760,461 1,242,325 106,460,770 11,233,042 5,441,301 406,268 17,557,057 1,000,000 3,442,599 2,694,309 (34,525) 1,805,710 309,578 4,531,787 6,290,955 5,324,322 1,101,714 2,776,641,149

13.4 Sundry Deposits Sundry Creditors Clearing adjustment Margin on letters of guarantee Margin on letters of credit Security deposits against locker Foreign correspondents charge Credit balance in CC,SOD,Loan etc. Collection Account Sanchaypatras Money Gram LDBP, Export bill/ proceeds Security deposit Receipts U.A.E.Exchange Placid Express FC,FCY Retention Quota Cash Risk Allowance/Fund Majan Exchange Three Star Remittance Federal Exchange Advance Rent on Lease Finance First Solution money transfer Al-Fardan exchange Co.L.L.C. Habib Qatar K.M. Financial Services London Arab National Bank (KSA) Wall Street Exchange Dhaka Janata Express Visa Credit Card Foreign remittance Retained Comm.from Remittance Provident Fund Credit Card Deposit A/c. Alt.Cash Assistance Zenj Exchange Itau Unibanco.S.A National Exchange Co. IME(M) SDN.BHD Al Zaman Exchange Transmit International Inc. USA Al Mulla International Exchange Others Unclaimed Block Account for 10 years & above

181,705,001 100 518,004,789 971,611,728 15,806,872 1,755,701 105,251,079 20,114,374 17,407,363 67,184,786 1,069,011,893 35,907,419 4,696,001 2,793,415 73,814,772 60,667,998 4,166,243 439,369 2,436,560 21,731,221 2,834,377 8,664,206 799,989 9,664,084 68,508,049 3,086,177 4,224,158 242,810 2,746,806 413,438 3,913,762 1,250,783 6,458,475 3,504,771 4,894,538 4,268,385 1,311,516 3,429,974 814,438 1,389,959 100 3,306,927,479

13 (C) Consolidated Deposits and other Accounts Current deposits and other accounts NCC Bank Limited (Note-13) NCCB Securities and Financial Services Limited

7,765,574,187 44,727,630 7,810,301,817

7,743,923,234 7,743,923,234

June 30, 2011 Taka

December 31, 2010

Taka 1,011,380,380 1,011,380,380 7,477,106,648 7,477,106,648 39,313,895,416 39,313,895,416 12,414,939,099 12,414,939,099 67,961,244,777

Bills Payable NCC Bank Limited (Note-13.1) NCCB Securities and Financial Services Limited Savings Bank Deposits NCC Bank Limited (Note-13) NCCB Securities and Financial Services Limited Fixed Deposits NCC Bank Limited (Note-13) NCCB Securities and Financial Services Limited Term Deposits NCC Bank Limited (Note-13) NCCB Securities and Financial Services Limited
16,616,759,664 16,616,759,664 76,514,359,374 43,495,868,872 43,495,868,872 7,571,500,817 7,571,500,817 1,019,928,204 1,019,928,204

14

Other Liabilities Outstanding interest Excise duty on loan Excise duty on deposit Special reserve of garments accounts Provisional for Expenses Audit fee payable Income tax deduction at source on interest Advance tax deducted at source Staff Income tax Inter Branch Transaction Account Stamp Deduction of VAT on LC commission and Service Charge Provision for loans and advances (Note 14.4 ) Provision on Off balance sheet items (Note-14.5) Interest Suspense (Note 14.7 ) Provision for Other Assets ( Note 14.2) Provision for Income tax ( Note 14.3) Provision for deferred tax liabilities ( Note 14.3.1) Exchange Equalization Reserve ( Note 14.1) Reserve for Unforeseen loss Provision for Gratuity (Note-14.9) Contribution to NCC Bank Foundation (Note-14.8) Provision for incentive Bonus
5,341,099,237 1,665,425,496 916,123 8,783,736 19,169,248 2,390,586 24,077,194 7,479,426 555,633 346,668,971 33,469 13,520,917 2,028,500,001 195,301,615 303,702,690 22,065,048 679,500,497 12,683,303 10,325,284 1,050,474,409 15,656,123 43,866,064 12,390,230 2,558,886 150,000 26,240,653 1,073,164 692,853 363,458,684 22,224 15,718,121 1,483,115,000 174,925,506 265,448,405 13,872,632 672,855,396 67,216,207 8,704,738 59,032,636 16,322,766 95,000,000 4,388,794,697

14(a) Consolidated Other Liabilities NCC Bank Limited (Note-14) NCCB Securities and Financial Services Limited
5,341,099,237 17,998,306 5,359,097,543 4,388,794,697 4,388,794,697

June 30, 2011 Taka

December 31, 2010

Taka 465,514 (465,514) -

14.1 Movement in Exchange Equalization Account Opening Balance Adjusted during the period Closing balance 14.2 Provision for other Assets: Opening Balance Add: Provisions made during the period Less: Provisions no longer required Closing balance 14.3 Provision for Income Tax: Opening Balance Add: provision made for current tax Prior years tax

13,872,632 8,192,416 22,065,048

18,348,000 (4,475,368) 13,872,632

Less: Adjusted during the period Closing Balance Less: Advance income tax paid and deducted at source Advance tax at source on treasury bills/ bonds Advance tax at source on bank interest & dividend Advance income tax deposited by Bank 5% Advance income tax paid on L/C commission Net balance at 31 March 2011
14.3.1 Consolidated Provision for Income Tax:

1,157,075,620 704,171,709 704,171,709 1,861,247,329 1,861,247,329 112,009 12,462,168 1,157,893,047 11,279,608 1,181,746,832 679,500,497

2,406,833,505 1,057,110,305 25,886,372 1,082,996,677 3,489,830,182 2,332,754,562 1,157,075,620 112,009 5,345,646 472,139,446 6,623,123 484,220,224 672,855,396

Opening Balance Add : Provision made for NCC Bank Limited Add : Provision made for NCCB Securities and Financial Services Limited. Less: Adjusted during the period Less: Advance income tax paid and deducted at source NCC Bank Limited NCCB Securities and Financial Services Limited

1,157,075,620 704,171,709 20,854,643 725,026,352 1,882,101,972 1,181,746,832 8,961,668 1,190,708,500 691,393,472

2,406,833,505 1,082,996,677 3,489,830,182 2,332,754,562 1,157,075,620 484,220,224 484,220,224 672,855,396

14.3.2 Deferred tax (Assets)/ Liabilities Deferred tax Assets Opening Balance Addition during the period Adjustment made during the period Closing balance Deferred tax Liabilities Opening Balance Add: Provision for revaluation reserve on Lands Addition during the period Adjustment made during the period

(334,904,743) (334,904,743) 30,771,267 36,444,940 67,216,207 280,371,839 347,588,046 347,588,046 12,683,303 (54,532,904)

237,216,207 36,444,940 273,661,147 273,661,147 (206,444,940) 67,216,207 67,216,207 -

Net Deferred tax (Assets)/ Liabilities Deferred tax

June 30, 2011 Taka

December 31, 2010

Taka

14.4 Provision for Loans and Advances a) Movement in specific provision on classified loans and advances Opening balance Fully provided debt written off Add: Recoveries of amounts previously written off Net charged to Profit and Loss Account Provision held at the end of the period b) Movement in general provision on unclassified loans and advances Opening balance Add: Provision made for the year/net charge in profit and loss account Less: Provisions no longer required Total (a) + (b) 14.5 Provision on off-balance sheet items Opening balance Add: Provision made during the period 14.6 Provision for NOSTRO Accounts Opening balance Add: Provision made during the period 14.7 Interest suspense account Opening balance Add: Amount transferred during the period Less: Amount recovered during the period Less: Amount written off during the period Closing balance 14.8 Contribution to NCC Bank Foundation (NCCBF) Opening balance Add: Contribution during the period Less : Adjusted / transferred during the period 14.9 Provision for Gratuity Opening Balance Add: Provision made during the period Less: Adjusted/Transferred to STD account during the period Closing Balance 15 Share Capital
740,313,000 (48,913,000) 691,400,000 2,028,500,001 174,925,506 20,376,109 195,301,615 265,448,405 38,599,059 (344,774) 303,702,690 16,322,766 16,322,766 16,322,766 59,032,636 (59,032,636) 740,313,000 1,483,115,000 111,928,000 62,997,506 174,925,506 230,367,473 213,675,197 (80,544,450) (98,049,815) 265,448,405 27,200,000 16,322,766 43,522,766 27,200,000 16,322,766 225,000,000 59,032,636 (225,000,000) 59,032,636 509,672,000 230,641,000 742,802,000 (4,165,428) 25,529,011 572,934,418 1,337,100,001 720,224,000 (378,883,352) 9,769,106 391,692,246 742,802,000

15.1 Authorized Share Capital 1,000,000,000 ordinary shares @ of Tk. 10 each 15.2 Issued, Subscribed and Fully Paid-up Capital 39,000,000 Ordinary shares of Tk 10 each issued for cash 410,681,855 Ordinary shares of Tk 10 each issued as bonus 144,483,580 Ordinary shares of Tk 10 each issued as right share in Cash 594,165,435 Ordinary shares of Tk 10 each

10,000,000,000

10,000,000,000

390,000,000 4,106,818,550 1,444,835,800 5,941,654,350

390,000,000 2,666,417,500 1,444,835,800 4,501,253,300

June 30, 2011 Taka

December 31, 2010

Taka

15.3 % of Shareholdings as on 30 June 2011 Particulars Local sponsors Financial Institutions Foreign Investors Public issues No of share 243,127,208 86,553,549 1,901,920 262,582,758 594,165,435 % of holdings 40.92 14.57 0.32 44.19 100.00
2,431,272,080 865,535,490 19,019,200 2,625,827,580 5,941,654,350 1,873,519,000 697,792,000 15,091,400 1,914,850,900 4,501,253,300

15.4 Range wise Shareholdings as on 30 June 2011 Range of holding of Shares Less than 5,000 5,001 to 10,000 10,001 to 20,000 20,001 to 30,000 30,001 to 40,000 40,001 to 50,000 50,001 to 100,000 100,001 to 200,000 200,001 to 300,000 300,001 to 400,000 400,001 to 500,000 500,001 to 1,000,000 1,000,001 to 10,000,000 10,000,001 to 100,000,000 Total 15.5 Capital Adequacy Ratio (CAR) Total assets including Off-Balance sheet items Total Risk Weighted Assets Required Capital ( 9% of Risk Weighted Assets) Actual Capital Held: Total Capital surplus/(deficit) i) Core capital (Tier- i) (%) Paid-up Capital Minority Interest Statutory Reserve General Reserve Surplus in Profit & Loss Account ii) Supplementary capital (Tier- ii) (%) General provision on Unclassified Loan General Provision for Off-balance sheet Exposures Revaluation Reserve on Govt. Securities Assets Revaluation Reserve Capital Adequacy Ratio : Capital requirement Tier-I Tier-II Total No. of share holders 89057 2369 968 287 121 97 196 99 39 27 19 59 75 7 93420
% of shares holding 14.11 3.79 3.06 1.51 0.88 0.95 2.85 2.94 1.98 1.85 1.51 7.47 41.21 15.89 100.00 114,721,984,267 98,777,900,000 8,890,011,000 10,843,328,981 1,953,317,981 9,692,580,035 5,941,654,350 133 2,819,456,596 7,162,348 924,306,608 1,150,748,946 691,400,000 195,301,615 140,964,738 123,082,593 No. of Shares 83,805,434 22,527,005 18,157,595 8,974,308 5,250,280 5,643,557 16,950,896 17,458,630 11,776,410 10,964,739 8,992,004 44,403,471 244,856,106 94,405,000 594,165,435 101,048,042,176 91,929,600,000 8,273,664,000 10,033,986,280 1,760,322,280 8,880,386,166 4,501,253,300 2,543,463,417 7,162,348 1,828,507,101 1,153,600,114 740,313,000 174,925,506 115,279,015 123,082,593 Held 9.66% 1.25% 10.91%

Required 4.50% 4.50% 9.00%

Held 9.81% 1.16% 10.98%

June 30, 2011 Taka 15.5.1 Calculation of risk weighted assets (RWA)

December 31, 2010

Taka

Credit Risk - On balance sheet assets


Sl. No. Particulars Outstanding balance as at 30-06-2011 Taka i ii iii iv Cash Claims on Bangladesh Government and Bangladesh Bank Claims on other Sovereigns & Central Banks Claims on Bank for International Settlements International Monetary Fund and European Central Bank v. vi. vii. Claims on Multilateral Development Banks(MDBs) Claims on Public Sector Entities ( other than Government) in Bangladesh Claims on Banks and NBFIs Original maturity over 3 months Original maturity less than 3 months viii. ix. x. xi. xii. xiii. xiv. xv. xvi Claims on Corporate Claims under Credit Risk Mitigation Claims categorized as retail portfolio and small & medium enterprise (excluding consumer loan) Consumer Loan Claims fully secured by residential property Claims fully secured by commercial real estate Past due claims (net off specific provision) Capital Market Exposures Unlisted equity investments and regulatory Capital instruments issued by other banks ( Other than those deducted from capital) held in the banking book xvii. xviii. xix. xx Investments in venture capital Investments in premises,plant and equipment and all other fixed assets Claims on all fixed assets under operating lease All other assets Total Credit Risk-off-balance sheet assets Sl. No. Particulars
Credit covertion factor (CCF )
Notional Amount (Netting off margin and add on factor for exchange rate fluctuation

Risk weighted assets Risk weights % 0 0 0 0 6/30/2011 Taka 0 0 0 0 as at 12/31/2010 Taka 0 0 0 0

762,506,424 11,389,801,201 0 0

0 0

0-150 50-125

0 0

0 0

915,374,307 3,119,910,284 35,971,600,000 3,819,900,000 10,318,500,000 306,300,000 1,415,500,000 3,485,400,000 2,171,200,000 2,823,976,005 451,411,600

20-150 20 20-125 20-125 75 100 50 100 50-150 125 125

915,400,000 624,000,000 43,785,000,000 313,500,000 7,738,900,000 306,300,000 707,800,000 3,485,400,000 2,785,000,000 3,530,000,000 564,300,000

658,352,451 660,011,989 40,362,800,000 282,600,000 8,651,200,000 307,400,000 697,400,000 3,376,000,000 2,831,400,000 4,422,600,000 582,100,000

150 1,290,131,972 100

0 1,290,100,000

0 1,191,600,000

3,135,176,535 81,376,688,328

0-100

1,481,200,000 67,526,900,000

1,376,700,000 65,400,164,440

Risk weighted Assets Credit equivalent Risk weights % As at 30-Jun-11 (Taka)


8,936,945,026

As at 31-Dec-10 (Taka)

i. ii.

Direct Credit Substitutes Lending of Securities or posting of securities as collateral

100% 100% 100% 50%

8,936,945,026

0 0
2,116,653,096

iii. iv.

Other commitments with certain drawdown Performance related

4,233,306,192

June 30, 2011 Taka contingencies v. vi. vii. viii. Commitments with original maturity of over one year Trade related contingencies Commitments with original maturity of one year or less Other commitments that can be unconditionally cancelled by any time ix. Foreign exchange contract Total
37,115,215,454 15,795,678,122

December 31, 2010

Taka 15,187,600,000

50% 20% 20% 0%

0
1,509,440,000 3,232,640,000

20-125

19,157,500,000

7,547,200,000 16,163,200,000

234,564,236

19,157,540,724

15,187,640,543

Risk weighted assets against Market Risk Risk weighted assets Sl. No. Particulars Capital charge (Taka ) As at 30-Jun-11 (Taka ) i. ii. iii. iv. Capital charge for Interest rate risk Capital charge for Equities Capital Charge for Foreign Exchange position Capital charge for Commodities Total Risk weighted assets against Operational Risk Gross Income Year 1(2011) Year 2(2010) Year 3(2009) Year 3(2008) Total gross income Average gross income Capital charge @ 15% of average gross income Risk weighted assets Calculation of Gross income Particulars Interest Income Net interest suspense Less : Interest Expenses Net interest Income Income from investment Commission,Exchange & Brokerage Other operating income Total income 15.6 Minority Interest Share Capital Retained earnings 100 33 133 Year 1(2011) (Taka) 0 0 0 0 0 0 0 0 Year 2(2010) (Taka) 6,970,010,528 213,675,197 4,483,541,724 2,700,144,001 1,642,016,484 1,264,281,562 281,684,127 5,888,126,174 Year 3(2009) (Taka) 6,487,768,688 94,242,982 4,960,743,231 1,621,268,439 1,071,197,525 981,257,153 792,809,413 4,466,532,530 Year 4(2008) (Taka) 5,449,728,058 129,765,099 4,099,984,694 1,479,508,463 638,069,608 1,026,013,925 303,832,945 3,447,424,941 0 5,888,126,174 4,466,532,530 3,447,424,941 13,802,083,645 4,600,694,548 690,104,182 7,667,557,462 0 5,888,126,174 4,466,532,530 3,447,424,941 13,802,083,645 4,600,694,548 690,104,182 7,667,557,462 261,073,890 52,294,770 84,991,500 0 398,360,160 2,900,821,000 581,053,000 944,350,000 0 4,426,224,000 As at 31-Dec-10 (Taka ) 2,878,600,000 597,700,000 197,800,000 0 3,674,100,000

15.7 Sl.

Name of the Directors and their shareholdings as at 30 June 2011 Name of Directors

Status Chairman Vice-Chairman Director Director Director Director Director Director Director Director Director Director Director Director Director Director Director Director Director Director Director Director Director Director Director

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

Alhaj Md. Nurun Newaz Mr. Md.Mostafizur Rahman Mr. A.S.M Main Uddin Monem Mr. Nurul Islam Mr.Md. Abdul Awal Mr. Amjadul Ferdous Chowdhury Mr. S.M. Abu Mohsin Mrs. Masuda Begum Mrs. Lutfun Nahar Begum Mr.Abdus Salam Mr. Mahbubul Alam Tara Mrs. Sohela Hossain Mr. Ainul Kabir Mr. Khondkar Zakaria Mahmud Mr. Md. Shahjahan Mr. Yakub Ali Mr. Ali Imam Mr. Tofazzal Hossain Mr. Fakhrul Anwar Mr. Md. Humayun Kabir Mr. Din M.Rana Mr.Md.Abul Bashar Mr.Harunur Rashid Mr. Khairul Alam Chaklader Mr. Md. Moin Uddin

Position as on Position as on 30. 06. 2011 31.12.2010 9,316,638 7,058,060 3,015,364 6,835,738 6,842,958 11,747,010 4,929,130 4,059,711 988,785 6,308,846 12,484,322 1,637,750 9,193,549 1,091,587 3,114,909 180,463 3,547,678 529,860 6,128,594 5,172,486 1,963,988 11,677,605 6,098,571 13,446,444 14,835,018 15,977,913 161,124,917 June 30, 2011 2,511,640 5,178,590 5,184,060 8,899,250 3,734,190 3,075,540 749,080 340,740 9,457,820 1,240,720 6,964,810 826,960 2,359,780 288,230 2,839,150 4,794,390 3,918,550 1,487,870 7,937,580 4,620,130 10,186,700 11,238,650 12,104,480 116,996,970
December 31, 2010

16

Statutory Reserve Opening Balance on 1 January Addition during the year (20% of pre-tax profit) Closing Balance at 31 March General Reserve Opening Balance on 1 January Addition during the period Less : Adjusted during the period Closing Balance at 31 March Other Reserve

Taka 2,543,463,417 275,993,179 2,819,456,596

Taka 1,893,817,316 649,646,101 2,543,463,417

17

7,162,348 7,162,348

67,162,348 60,000,000 7,162,348

18

18.1 Capital Reserve - Assets revaluation reserve Less: provision for deferred tax 18.2 Revaluation reserve on Govt. securities (Treasury Bills & Bonds)-HTM Opening balance Add: addition during the period Held to Maturity (HTM ) Held for trading (HFT) Less: adjusted during the period Held for trading (HFT) Closing balance

246,165,187 246,165,187 230,558,030 51,371,445 51,371,445 281,929,475 528,094,662

282,610,127 36,444,940 246,165,187 385,581,483 35,930,464 35,930,464 (190,953,917) (190,953,917) 230,558,030 476,723,217

June 30, 2011 Taka

December 31, 2010

Taka 46,474,433 2,371,678,769 (649,646,101) 60,000,000 1,828,507,101

19

Surplus in profit and Loss Account Retained earnings brought forward from previous year ( Note-19.1 ) Profit for the period Transfer to Statutory Reserve Transferred from General Reserve

388,106,051 730,327,091 (275,993,179) 842,439,963

19(a) Consolidated Surplus in profit and Loss Account Retained earnings brought forward from previous year ( Note-19.1 ) Profit for the period Transfer to Statutory Reserve Minority Interest Transferred to General Reserve Transferred from General Reserve 19.1 Retained earnings Opening balance Issue of Bonus Share 2010 Closing Balance 20 Contingent Liabilities :
8,552,271,026 5,404,953,559 1,828,507,101 (1,440,401,050) 388,106,051 1,120,377,433 (1,073,903,000) 46,474,433 388,106,051 812,193,769 (275,993,179) (33) 924,306,608 46,474,433 2,371,678,769 (649,646,101) 60,000,000 1,828,507,101

20.1 Acceptances and Endorsement 20.2 Letter of Guarantee Money for which the Bank is contingently liable in respect of guarantees issued Directors Government Banks and other financial institutions Others Total Less: Margin - Note 13.4

12,852,000 1,892,451,825 14,126,258 3,216,554,898 5,135,984,981 518,004,789 4,617,980,192

2,573,000 2,011,346,537 14,353,711 3,483,992,598 5,512,265,846 514,121,302 4,998,144,544

20.3 Letter of Credit issued Documentary Credit and short-term trade-related transactions Forward Assets purchased and forward deposits placed Undrawn formal standby facilities, credit facilities and other commitments Spot and forward foreign exchange rate contract Other exchange contract Total Less: Margin - Note 13.4 20.4 Bills for Collection
7,197,029,982 7,197,029,982 971,611,728 6,225,418,254 110,452,974 7,832,081,986 7,832,081,986 750,596,856 7,081,485,130 3,708,113

June 30,2011 Taka

June 30,2010 Taka

21

Interest Income Interest on Loans and Advances Loan ( General) Loan against House Building Loan against Imported Merchandise Loan against Trust Receipts Loan against Packing Credit SOD against Financial Obligation SOD against Real Estate SOD against Import permit SOD General SOD Export C.C. against pledge C.C. against hypothecation C.C. against Export Forced Loan Inland bill purchased FDBP & Discounted Payment against documents Local documentary bills purchased Transport loan Project loan Demand loan Lease Finance Small Business Loan House Renovation Loan Personal Loans Consumers Finance Scheme Home improvement Loan Loan against Investment Agri Credit Festival Small Business Loan Term Loan (Small,Med/Large) Special Housing Loan Housing Loan under Refinance Scheme Staff P.F Loan Staff House Building Loan Staff Car Loan Credit Card Car Loan Scheme Short Term Loan (STL) Garments & Foot wear cluster Education Loan Scheme Interest on balances with other banks and financial institutions Fixed Deposits Short term Deposits Nostro Accounts Money at call & short notice Financial Institutions Discount on Bills Purchased
47,304,531 10,780 4,029,498 8,081,944 4,723,749 678,857 64,829,359 4,473,007,421 13,362,254 11,988 2,529,609 1,077,500 3,920,070 2,708,683 23,610,104 3,308,084,264 400,577,135 112,112,660 4,557,825 908,825,220 13,375,933 415,962,264 1,889,013 2,266,024 391,320,036 28,835,483 9,022,594 680,405,601 39,833 70,523,854 1,397,498 13,176,495 181,325,579 224,108,729 20,315,920 14,659,683 202,570 79,724,910 57,140,268 6,690,898 1,217,449 71,641 870,912 1,298,803 16,773,687 2,372,761 584,920,780 71,866,860 1,762,975 6,170,508 8,336,494 655,201 17,042,731 7,677,712 48,343,657 36,982 302,884 4,408,178,062 304,922,683 79,802,619 3,229,041 709,531,864 8,955,915 411,581,048 3,048,123 7,610,096 245,244,167 14,670,019 17,892,396 432,843,605 111,301 40,339,298 72,905 5,003,728 114,707,433 117,429,741 11,220,255 19,193,963 2,816,832 52,883,276 50,157,472 6,963,688 1,319,928 103,209 6,060,052 2,944,788 496,301,173 64,321,496 1,860,176 5,522,659 7,175,287 926,561 15,908,668 3,670,384 18,068,432 59,879 3,284,474,160

June 30,2011 Taka

June 30,2010 Taka 3,308,084,264 3,308,084,264 100,580,680 54,447,968 1,491,014,642 1,016,880 204,180,482 46,992,144 14,982 56,241,239 29,116,329 2,234,943 21,760,252 496,133 109,136,831 2,117,233,505 2,117,233,505 2,117,233,505 2,338,516 41,902,313 90,000 180,251,127 137,204,102 278,604,236 4,296,738 644,687,032

21(a) Consolidated Interest Income


NCC Bank Limited (Note-21) Less : Interest Income paid to NCC Bank Ltd NCCB Securities and Financial Services Limited 4,473,007,421 (112,127,087) 166,706,647 4,527,586,981 148,465,456 132,918,671 2,166,999,679 293,715,372 69,190,779 32,050 83,423,153 219,123,334 4,376,041 153,563,141 61,226,090 6,451,403 220,000 150,810,245 3,490,515,414 3,490,515,414 (112,127,087) 112,127,087 3,490,515,414

22

Interest paid on deposits and borrowings


Savings deposits Short term deposits Fixed deposits Bearer certificate of deposits Special savings scheme Special deposit scheme Discount Borrowings from banks, financial institutions, etc. REPO agreement with Bangladesh Bank Wage Earners Welfare DPS Treasury Bond Coupon Interest Premium Term deposits Instant Earning Term deposits Money Double Program

22(a) Consolidated Interest paid on Deposits,Borrowings,etc. NCC Bank Limited (Note-22) Less : Interest Expenses NCCB Securities and Financial Services Limited 23 Interest from investments Dividend on shares Interest on Treasury bills Commission from National Prize Bond Income from sale of Shares Interest on Treasury Bond (HTM) Interest on Treasury Bond (HFT) Discount on Zero Coupon Bond Others Commission, exchange and brokerage Commission: Commission on bill purchased Commission on Remittances Commission on Letter of Guarantee Commission on Letter of Credit Commission on Pur./Sale-Share/Securities Commission on Sanchaypatra Commission on Back to Back LC. Letter of Credit Advising Commission & handling charge Commission on Acceptance of BTB L/C Commission - Miscellaneous Commission on L/C Confirmation Underwriting Commission Commission on Instrument Cancellation Money Gram/Others Exchange: Exchange gain net off exchange losses Brokerage

3,945,834 107,638,778 121,000 20,900,436 234,124,869 681,297,043 3,621,421 5,824,715 1,057,474,096

24

6,066,607 10,005,397 35,976,198 110,298,626 634,318 21,241 26,289,227 4,964,598 50,556,881 8,127,640 133,138 6,006,320 6,300 13,361,637 272,448,128 212,538,284 124,910,427 609,896,839

2,686,852 8,633,177 41,937,151 76,096,512 876,238 20,572,370 4,747,780 27,217,435 3,897,300 277,436 5,628,595 11,610 11,363,510 203,945,966 118,193,472 278,073,000 600,212,438

June 30,2011 Taka

June 30,2010 Taka 600,212,438 600,212,438 608,888 1,253,627 4,979,426 16,001,169 700 435,537 28,042,172 1,715,429 2,366,556 16,363,965 2,284,716 26,012,894 6,989,283 20,425,881 3,047,376 130,527,619 130,527,619 130,527,619 187,788,424 66,270,878 60,900,997 15,884,506 21,393,683 635,804 352,874,292 14,701,224 29,764,230 467,775 200,084 5,890,731 9,876,953 60,900,997 352,874,292 352,874,292

24(a) Consolidated Commission,Exchange & Brokerage NCC Bank Limited (Note-24) NCCB Securities and Financial Services Limited 25 Other operating income Rent Locker Rent Godown Postage recoveries Telex, Telegram, Trunk call, Fax.Swift etc. recoveries Incidental charge recoveries Legal charge recoveries Service charge ATM Transaction Fees Profit on sale of Fixed assets Capital gain on sale of treasury bonds Risk Fund Account Maintenance Fees Card fees Miscellaneous earnings Application and processing fees
609,896,839 71,006,718 680,903,557 774,904 348,840 4,933,493 15,414,239 511,316 33,187,706 2,693,144 4,233,349 50,743,670 3,026,319 30,476,349 8,685,855 35,756,430 4,167,882 194,953,496 194,953,496 2,032,788 196,986,284

25(a) Consolidated Other operating income NCC Bank Limited (Note-25) NCCB Securities and Financial Services Limited 26 Salary & allowances Basic Salary House rent allowance Allowances ( Note 26.a) ) Bank's contribution to Provident fund Bonus Honorarium 26(a) Allowances Entertainment Allowance Medical allowance Washing allowance Evening Banking Casual Wages Other allowance 26(a) Consolidated Salary & allowances NCC Bank Limited (Note-26) NCCB Securities and Financial Services Limited 27 Rent,taxes,insurance,electricity etc. Rent : Office Godown/Garage Clearing House

202,601,623 71,592,659 67,748,308 17,363,428 47,230,300 755,500 407,291,818 15,711,683 32,316,701 434,033 232,700 7,854,328 11,198,863 67,748,308 407,291,818 8,106,794 415,398,612

43,090,216 410,216 28,017 43,528,449

38,354,829 197,850 22,102 38,574,781

June 30,2011 Taka

June 30,2010 Taka 141,520 904,559 1,046,079 2,621,956 630,802 13,390,507 264,066 16,907,331 7,775,664 450,542 8,226,206 64,754,397 64,754,397 64,754,397 2,073,258 70,736 56,321 2,200,315 3,801,739 4,267,671 2,648,670 1,204,189 11,922,269

Rates and Taxes: Rates Taxes Insurance: Cash Vehicles Deposits Godown Insurance

154,623 463,013 617,636 2,636,332 583,776 17,164,927 20,385,035

Electricity : Electricity - office Electricity - residence

8,881,476 546,692 9,428,168 73,959,288

27(a) Consolidated Rent,taxes,insurance,electricity etc. NCC Bank Limited (Note-27) NCCB Securities and Financial Services Limited 28 Legal Expenses Legal charge Stamp charge Consultancy fee Credit Rating Fee 29 Postage,stamp and telecommunication Postage Telex/Swift/Internet Telephone -Office Telephone -Residence
1,867,082 35,437 48,500 1,951,019 5,400,012 3,761,579 2,558,624 1,396,323 13,116,538 73,959,288 2,321,509 76,280,797

29(a) Consolidated Postage,stamp and telecommunication NCC Bank Limited (Note-29) NCCB Securities and Financial Services Limited
13,116,538 213,416 13,329,954 11,922,269 11,922,269

30

Stationery,printing,advertisement etc. Printing and stationery: Printed stationery Security stationery Petty stationery Publicity and advertisement
9,841,089 6,391,689 5,583,401 21,816,179 23,961,357 45,777,536 8,273,358 4,467,116 6,194,613 18,935,087 18,503,947 37,439,034 37,439,034 37,439,034

30(a) Consolidated Stationery,printing,advertisement etc. NCC Bank Limited (Note-30) NCCB Securities and Financial Services Limited
45,777,536 355,960 46,133,496

June 30,2011 Taka

June 30,2010 Taka 1,755,000 1,000,000 105,750 211,500 442,500 3,514,750

31

Managing Director's Salary & allowances Basic Salary Bonus Entertainment allowance Medical allowance House Rent allowance Director's Fees For attending the meeting of the Board / Executive Committee/ Audit Committee etc. @ Tk 5,000 per attendance per person Audit Fees Repairs,maintenance and depreciation Repairs & Maintenance: Repairs & Maintenance of Fixed assets Renovation & Maintenance of Premises Depreciation: (Annexure 'B') Furniture and fixtures Machinery and Equipment Vehicles Property

2,250,000 1,000,000 162,000 324,000 562,500 4,298,500

32

33 34

1,035,000 -

1,341,000 -

39,933,878 27,701,914 67,635,792 9,340,555 25,881,107 5,223,030 5,500,000 45,944,692 113,580,484 113,580,484 4,590,471 118,170,955 67,635,792 3,712,451 71,348,243 45,944,692 878,020 46,822,712 8,032,103 14,872,032 586,793 8,287,685 23,755,921 212,311 618,896 1,832,346 36,892 593,882 694,586 8,170,597 41,938 6,794,963 1,292,860 469,356 67,236,987 1,725,528 2,991,316 12,463,419 156,501 3,441,138 86,618 1,375,532 2,000,000 167,770,200

30,152,881 26,856,160 57,009,041 7,464,062 20,546,577 5,075,140 3,180,928 36,266,707 93,275,748 93,275,748 93,275,748 57,009,041 57,009,041 36,266,707 36,266,707 7,937,697 14,351,614 652,083 3,454,626 24,671,435 65,600 382,826 1,819,766 107,430 288,131 567,602 6,872,250 631,720 6,184,226 663,800 590,743 15,366,115 2,593,831 1,310,550 22,488,558 879,502 2,880,721 177,171 7,798,568 4,500,000 127,236,565

34(a) Consolidated Repairs,maintenance and depreciation NCC Bank Limited (Note-34) NCCB Securities and Financial Services Limited Consolidated Repairs & Maintenance: NCC Bank Limited (Note-34) NCCB Securities and Financial Services Limited Consolidated Depreciation: (Annexure 'B') NCC Bank Limited (Note-34) NCCB Securities and Financial Services Limited 35 Other expenses Entertainment Car expenses Paper and periodicals Trade Subscription Traveling & Conveyance Cartage & Freight Liveries and Uniform Water sewerage and gas Medical charges Laundry and cleaning Training expenses Business promotion Donation Utility Charges Traveling and Haltage ( Directors ) Refreshment and dinner ( Directors ) Revaluation Reserve on BGTB/T.Bill (HFT) Welfare and Recreation Other Bank Charge CDBL Charge Miscellaneous expenses Credit Card Service Charge Charges of BO A/c Sale Commission Superannuation Fund

June 30,2011 Taka

June 30,2010 Taka 127,236,565 127,236,565 128,161,063 114,193,472 242,354,535

35(a) Consolidated Other expenses NCC Bank Limited (Note-35) NCCB Securities and Financial Services Limited 36 Cash received from other operating activities Other operating income Exchange earning 36(a) Consolidated Cash received from other operating activities Other operating income Exchange earning 37 Cash paid for other operating activities Expenses for the year Add: Opening accrued expenses Less: Closing accrued expenses
192,752,935 212,538,284 405,291,219 261,325,419 2,708,886 2,390,586 261,643,719 277,238,350 2,708,886 2,390,586 277,556,650 128,161,063 114,193,472 242,354,535 196,154,450 3,925,290 1,775,519 198,304,221 196,154,450 3,925,290 1,775,519 198,304,221 190,720,147 212,538,284 403,258,431 167,770,200 9,309,595 177,079,795

37(a) Consolidated Cash paid for other operating activities Expenses for the year Add: Opening accrued expenses Less: Closing accrued expenses 38 Increase/(decrease) of other assets Closing other assets: Stationery in hand Stamps and stamped forms in hand Advance deposit Advance against rent Suspense account Prepaid Expenses (Software) Others Opening other assets: Stationery in hand Stamps and stamped forms in hand Advance deposit Advance against rent Suspense account Prepaid Expenses (Software) Others Income Tax paid during the year Increase/(decrease) for the year 38(a) Increase/(decrease) of Consolidated other assets Closing other assets: Stationery in hand Stamps and stamped forms in hand Advance deposit Advance against rent Suspense account Prepaid Expenses (Software) Others

25,429,470 1,683,243 1,750,789 92,143,297 64,311,732 25,962,156 1,053,331,797 1,264,612,484 16,538,351 1,386,944 1,662,909 88,740,104 82,735,210 18,441,288 931,591,963 697,526,608 1,838,623,377 (574,010,893)

17,442,666 1,489,424 1,521,259 77,063,434 78,761,121 22,867,268 584,854,646 783,999,818 18,211,407 980,964 1,497,459 58,482,625 62,556,696 22,057,268 388,027,076 415,339,328 967,152,823 (183,153,005)

25,429,470 1,683,243 1,750,789 92,143,297 64,311,732 25,962,156 781,568,887 992,849,574

17,442,666 1,489,424 1,521,259 77,063,434 78,761,121 22,867,268 584,854,646 783,999,818

June 30,2011 Taka

June 30,2010 Taka 18,211,407 980,964 1,497,459 58,482,625 62,556,696 22,057,268 388,027,076 415,339,328 967,152,823 (183,153,005)

Opening other assets: Stationery in hand Stamps and stamped forms in hand Advance deposit Advance against rent Suspense account Prepaid Expenses (Software) Others Income Tax paid during the year Increase/(decrease) for the year 39 Increase/(decrease) of other liabilities Closing other liabilities Interest Suspense Inter branch transaction account Opening other liabilities Interest Suspense Inter branch transaction account Increase/(decrease) for the year 40 Cash and Cash equivalents Cash in hand Balance with Bangladesh Bank and Sonali Bank Balance with other bank and financial institution Prize bonds 40(a) Consolidated Cash and Cash equivalents Cash in hand Balance with Bangladesh Bank and Sonali Bank Balance with other bank and financial institution Prize bonds 41 Earnings Per Share (EPS) Net Profit after tax for the period Number of Ordinary share outstanding Earning per Share (EPS) Resated Earning per Share (REPS) 41 (a) Consolidated Earnings Per Share Net Profit after tax for the period Number of Ordinary share outstanding Earning per Share (EPS) Resated Earning per Share (REPS)

16,538,351 1,386,944 1,662,909 88,740,104 82,735,210 18,441,288 931,591,963 706,488,276 1,847,585,045 (854,735,471)

303,702,690 346,668,971 650,371,661

254,976,369 438,457,846 693,434,215

265,448,405 363,458,684 628,907,089 21,464,572

230,367,473 459,782,492 690,149,965 3,284,250

762,506,424 5,093,091,400 759,133,572 6,865,500 6,621,596,896 762,512,372 5,093,091,400 762,356,655 6,865,500 6,624,825,927

553,742,945 5,320,538,275 1,219,618,663 7,297,100 7,101,196,983 553,742,945 5,320,538,275 1,219,618,663 7,297,100 7,101,196,983

730,327,091 594,165,435 1.23 812,193,769 594,165,435 1.37 -

1,065,969,927 450,125,330 2.43 1.79 1,065,969,927 450,125,330 2.43 1.79

Sd/A.K. Md. Siddique Deputy Managing Director & Chief Executive Officer

Sd/Mohammed Nurul Amin Managing Director & Chief Executive Officer

Annexur-A

National Credit and Commerce Bank Limited


CONSOLIDATED FIXED ASSETS SCHEDULE AS AT JUNE 30, 2011
Cost (Disposals) / adjustments during the period Taka (41,247) (5,477,398) (5,518,645) Depreciation Charge for ( On Balance at 30 Written down the period Disposals)/ June -2011 value at 30 Juneadjustments 2011 during the period Taka Taka Taka Taka 9,559,609 26,540,073 27,164 296,482 569,542 281,454 620,890 765,536 782,038 485,552 867,370 5,223,030 46,018,740 (5,369,412) (5,369,412) Depreciation (5,518,645) (10,994,542) 79,816,000 163,150,265 39,643,862 282,610,127 1,662,378,240 1,522,286,158 991,097 991,097 330,792,968 261,671,687 803,972 803,972 46,822,712 79,661,309 (5,369,412) (10,540,028) 1,795,069 1,795,069 372,246,268 330,792,968 79,816,000 163,150,265 37,848,793 280,815,058 1,290,131,972 1,191,493,190 111,186,302 206,916,980 141,540 2,605,775 2,319,070 1,466,528 3,235,163 1,637,699 1,066,142 571,617 879,069 38,425,314 370,451,199 165,402,427 246,796,989 95,284,000 24,568,294 24,094,175 45,493,764 24,554,946 49,850,293 60,477,311 61,781,058 58,330,803 125,791,367 26,891,487 1,009,316,914

Balance on 1 January -2011

Particulars
Taka

Additions during the period

Balance at 30 June- 2011

Balance on 1 January2011

Taka 39,605,087 64,842,610 39,284,168 1,878,862 145,610,727

Taka 276,588,729 453,713,969 95,284,000 24,709,834 26,699,950 47,812,834 26,021,474 53,085,456 62,115,010 62,847,200 58,902,420 126,670,436 65,316,801 1,379,768,113

Taka 101,626,693 180,376,907 114,376 2,309,293 1,749,528 1,185,074 2,614,273 872,163 284,104 86,065 11,699 38,571,696 329,801,871

Furniture & fixture Machinery & equipment

236,983,642 388,912,606 95,284,000 24,709,834 26,699,950 47,812,834 26,021,474 53,085,456 62,115,010 62,847,200 58,902,420 87,386,268 68,915,337

Land - I - Head Office Premise (Under Construction)


Land - II - Head Office Premise (with Structure)

Land - III Premise of Dhanmondi Branch Land - IV Premise of Islampur Branch Land -V - Premise of Savar Branch Land - V1 - Premise of Bijoynagar Branch Land - V11 - Premise of Pragoti Sarani Branch
Land - V111 - Premise of Uttara Branch

Land - 1X -Premise of Agrabad Branch


Land - X -Premise of Elephant Road Branch

Vehicles Sub-total

1,239,676,031

Re-valuation

Land - I - Premise of Head Office (Under Construction)


Land - II - Head Office Premise (with Structure) Land - III Premise of Dhanmondi Branch

79,816,000 163,150,265 39,643,862 282,610,127 1,522,286,158 1,110,775,268

145,610,727 422,505,432

December -2010 December-2010

Sub-total Grand total .

Annexur-B

National Credit and Commerce Bank Limited


FIXED ASSETS SCHEDULE AS AT JUNE 30, 2011
Balance on 1 January -2011 Particulars Cost Additions (Disposals) / during the adjustments period during the period Taka Taka Balance at 30 June- 2011 Balance on 1 January2011 Depreciation Balance at 30 Written down Charge for ( On June -2011 value at 30 Junethe period Disposals)/ adjustments 2011 during the period Taka Taka Taka Taka

Taka Furniture & fixture Machinery & equipment Land - I - Head Office Premise (Under Construction) Land - II - Head Office Premise (with Structure) Land - III Premise of Dhanmondi Branch Land - IV Premise of Islampur Branch Land -V - Premise of Savar Branch Land - V1 - Premise of Bijoynagar Branch Land - V11 - Premise of Pragoti Sarani Branch Land - V111 - Premise of Uttara Branch Land - 1X -Premise of Agrabad Branch Land - X -Premise of Elephant Road Branch Vehicles Sub-total Land - I - Premise of Head Office (Under Construction) Land - II - Head Office Premise (with Structure) Land - III Premise of Dhanmondi Branch Sub-total March -2011 December-2010 Grand total

Taka

Taka

236,983,642 388,912,606 95,284,000 24,709,834 26,699,950 47,812,834 26,021,474 53,085,456 62,115,010 62,847,200 58,902,420 87,386,268 68,915,337 1,239,676,031 79,816,000 163,150,265 39,643,862 282,610,127 1,522,286,158 . 1,110,775,268

39,579,914 64,833,310 39,284,168

(41,247) -

276,563,556 453,704,669 95,284,000 24,709,834 26,699,950 47,812,834 26,021,474 53,085,456 62,115,010 62,847,200 58,902,420 126,670,436

101,626,693 180,376,907 114,376 2,309,293 1,749,528 1,185,074 2,614,273 872,163 284,104 86,065 11,699 38,571,696 329,801,871 991,097 991,097 330,792,968 261,671,687

9,340,555 25,881,107 27,164 296,482 569,542 281,454 620,890 765,536 782,038 485,552 867,370 5,223,030 45,140,720 803,972 803,972 45,944,692 79,661,309

110,967,248 206,258,014 141,540 2,605,775 2,319,070 1,466,528 3,235,163 1,637,699 1,066,142 571,617 879,069

165,596,308 247,446,655 95,284,000 24,568,294 24,094,175 45,493,764 24,554,946 49,850,293 60,477,311 61,781,058 58,330,803 125,791,367 26,891,487 1,010,160,461 79,816,000 163,150,265 37,848,793 280,815,058 1,290,975,519 1,191,493,190

(5,477,398) 1,878,862 65,316,801 145,576,254 (5,518,645) 1,379,733,640 Re-valuation

(5,369,412) 38,425,314 (5,369,412) 369,573,179 Depreciation 1,795,069

145,576,254 422,505,432

79,816,000 163,150,265 39,643,862

282,610,127 (5,518,645) 1,662,343,767 (10,994,542) 1,522,286,158

1,795,069 (5,369,412) 371,368,248 (10,540,028) 330,792,968

Annexure-C

BALANCE WITH OTHER BANKS AND FINANCIAL INSTITUTIONS


Outside Bangladesh - Note 6(2) For the half-year ended June 30, 2011

In demand deposit accounts (non interest bearing) with: June 30, 2011 Name of the Bank
Currency Name

December 31, 2010 Amount in BDT. 939,553 3,171,555 996,434 7,499,980 568,178 7,405,000 24,541,579 1,964,731 1,318,217 382,970 8,634,165 4,499,645 3,970,945 2,452,358 27,328,249 4,254,030 15,660,955 7,855,855 8,564,322 5,339,822 Amount in Foreign Currency 9,808.62 1,585,843.00 127,142.81
1,048,995.00

Amount in Foreign Currency 15,601.29 3,445,096.00 1,082,375.00

Convertion rate per unit F.C. 60.2228 0.9206 0.9206 74.0500 74.0500 74.0500 74.0500 106.4243 74.0500 0.9206 74.0500 74.0500 74.0500 74.0500 74.0500 74.0500 106.4243 74.0500 76.4821 74.0500 -

Convertion rate per unit F.C. 54.4168 0.8636 70.3500 0.8636 70.3500 70.3500 70.3500 70.3500 92.4731 70.3500 0.8636 70.3500 70.3500 70.3500 70.3500 92.4731 70.3500 70.3782 70.3500 92.4731

Amount in BDT. 533,754 1,369,534 8,944,497 905,912 6,632,299 4,897,467 7,035,000 26,800,395 1,041,928 1,965,312 157,521 4,050,339 18888751 6462083 4,060,432 4,645,956 11604349 3803014 9,891,641 1,469,082 125,159,266

Standard Chartered Bank, Singapore Standard Chartered Bank, Japan HSBC Bank, New York Bank of Tokyo Mitsubishi, Japan Myanma Investment & Co, Mayanmar Banko Itau Bank of Tokyo Mitsubishi, Kolkata American Express Bank, Colombo Commerze Bank AG United Bank Ltd., Karachi UBAF,Japan Nepal Bangladesh Bank, Nepal HSBC, Kolkata AXIS Bank Kolkata Bank of Bhutan, Phuentsholing WACHOVIA NA ICICI Bank Kolkata Uni Credio Italiano Spa ICICI Bank HKK Nova Scotia Canada Habib Metropoliton Bank Standard Chartered Bank, London

SGD J.YEN USD J.YEN ACU USD ACU ACU EUR ACU J.YEN ACU ACU ACU ACU USD ACU EURO USD CAD ACU EUR

101,282.64 7,672.89 100,000.00 331,419.03 18,461.30 17,801.71 416,000.00 116,599.12 60,764.96 53,625.19 33,117.59 369,051.30 57,448.08 147,155.82 106,088.52 111,978.12 72,111.03 -

94,275.75 69,615.74 100,000.00 380,957.99 11,267.36 27,936.21 182,400.00 57,574.12 268,496.81 91,856.19 57,717.59 50,241.16 164,951.65 54,036.82 140,606.13 15,886.59

137,348,543

In demand deposit account ( interest bearing) with : Currency Name Standard Chatered Bank, New York Mashreq Bank, New York CITI Bank NA Standard Chartered Bank, London USD USD USD GBP Amount in Foreign Currency 3,161,137.29 1,414,594.47 1,105,211.08 463,280.98 Convertion rate per unit F.C. 74.0500 74.0500 74.0500 118.2575 Amount in Foreign Currency 1,162,781.25 410,051.83 Convertion rate per unit F.C. 70.3500 70.3500 -

Amount in BDT. 234,082,216 104,750,721 81,840,880 54,786,451 475,460,268 612,808,811

Amount in BDT. 81,801,661 28,847,146 110,648,807

235,808,073

Annexure - D

NATIONAL CREDIT AND COMMERCE BANK LTD


Financial Statements For the half-year ended June 30, 2011

Borrowings from other banks, Financial Institutions and agents ( Outside Bangladesh ) - Note -12 40724 Name of the Bank Amount in Convertion
Currency Name
USD ADLR GBP ACU USD ACU EUR USD

40543
Amount in Foreign Currency
468,942.53 436,877.22 3,396.57 792,566.97 211,697.04 1,951,778.61 -

Foreign Currency
119,465.31 195.07 69,428.72 18,066.95

rate per unit F.C.


75.0500 72.3000 75.0500 110.8825 75.0500

Amount in BDT.
8,965,872 14,640 7,698,430 1,355,925 18,034,867

Convertion rate per unit F.C.


71.3500 71.3500 111.6567 71.3500 71.3500 71.3500 -

Amount in BDT.
33,459,050 31,171,190 379,250 56,549,653 15,104,584 139,259,404 275,923,130

CITI Bank NA ICICI Bank, Kolkata Standard Chartered Bank, London Standard Chartered Bank, Kolkata Wachovia NA Mashreq Bank Kolkata Standard Chartered Bank, London HSBC Bank,N.Y

Annexure-E

National Credit and Commerce Bank Limited Notes to the Financial Statements
Statement of Large Loan Exposure made during the period June 30, 2011 more than 10% of Total Capital of the Bank (Note-9.7) (Amount in Crore) Sl. No Name of Clients
June 30, 2011 December 31, 2010

1 2 3 4 5 6 7 8 9

NCCBL Securities & Financial Servises Limited

Aftab Group (all allied concern) Doreen Power Generation & Systems Ltd. Saad Musa Home Tex Abul Khair Steel Industries Ltd. Best Holdings Ltd. DAF P.P. Ind. & allied concern BSRM Steel BBC Steel Grand -Total

Taka Outstanding Total Funded Non-Funded Amount 242.29 102.00 344.29 176.02 25.67 201.69 186.91 9.50 196.41 101.62 63.09 164.71 45.93 110.83 156.76 120.66 1.41 122.07 76.62 39.18 115.80 25.98 88.84 114.82 13.11 92.87 105.98 989.14 533.39 1,522.53

Taka Total Amount 133.83 205.16 101.43 152.60 112.14 166.29 871.45

Annexure-F

National Credit and Commerce Bank Limited


Investment in Shares as on 30.06.2011

SL No.

Name of Company

Type of Shares

Face Value

Quoted rate Cost / Present per share as No. of Shares value of on holdings 30.06.2011 5 6 3,008,892 223,932 277,852 4,227,951 5,061,712 511,650 300,000 1,562,905 9,794,937 6,399,750 29,564,701 6,736,541 10,000,000 9,945,178 11,650 5,150,550 7,206,040 7,484,686 11,685,708 56,132 8,509,524 8,781,367 3,292,656 17,923,420 337,500 11,223 24,453,435 7,806,380 37,868,869 9,368,665 1,701,470 114,448 12,635,358 13,350,279 934,833 5,490,645 2,471,700 3,504,400 2,325,945 7,655,725 42,620,962 10,000,000 704,400 2,004,763 758,000 10,000,000 28,250,245 13,681 3,046 382,103,706 8,833,340 991,199 18,000,000 7,448,523 4,165,900 17,000,000 25,500,000 150,000,000 8 632.20 495.25 649.50 9.90 65.20 1,902.00 534.50 851.00 525.50 72.60 34.20 1,413.50 8.90 1,706.50 924.00 478.25 163.90 184.70 2,049.00 512.50 35.00 209.90 188.60 168.10 32.90 47.50 55.30 80.90 320.50 139.30 62.80 327.50 81.50 802.25 79.40 11.20 69.50 489.00 79.70 38.30 1,122.00 7.80 334.00 807.75 51.30 8.80 118.60 733.75 105.00

Total Market Value as at 30.06.2011 9 3,161,000 893,926 1,626,348 2,521,530 7,642,385 1,259,124 534,500 1,467,975 5,780,500 2,504,700 18,550,935 5,343,030 8,900,000 9,529,096 12,012 4,352,075 4,261,400 5,005,370 9,550,389 102,500 6,412,387 6,653,830 2,027,450 12,607,500 1,498,990 160,550 21,746,725 3,033,750 24,229,800 6,686,400 1,695,600 119,538 10,595,000 11,632,625 952,800 4,481,120 1,251,000 2,445,000 1,757,883 7,660,000 26,834,874 7,800,000 668,000 2,019,375 769,500 8,800,000 23,180,370 14,969 7,329 290,741,160 2,000,000 991,199 18,000,000 7,448,523 4,165,900 17,000,000 25,500,000 150,000,000

1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49

2 Quoted: Bata Shoe Co. (BD) Ltd. Bangladesh Auto Cars Ltd. Eastern Cables Ltd. Eagle Star Textile Mills Ltd. National Bank Limited Olympic Industries Ltd. Prime Textile Mills Ltd. A B Bank Ltd. Agrani Insurance Ltd. Asia Insurance Ltd. Al-Arafa Islami Bank Ltd. BSRM Steel Ltd. MBL 1st Mutual Fund DESCO Ltd. Eastland Insurance Ltd. Bank Asia Ltd. Grameenphone Ltd. Green Delta Insurance Co. IDLC Islami Bank (BD) Ltd. Jamuna Bank Ltd. Lanka Bangla Finance Ltd. Meghna Petrolium Ltd Navana CNG Ltd. Exim Bank Ltd. Prime Bank Ltd. Pubali Bank Ltd. Summit Alliance Port Ltd. South East Bank Ltd. Square Textiles Ltd Karnaphuly Insurance Ltd. Standard Bank Ltd. Summit Power Ltd. Titas Gas Transmission Uttara Bank Ltd. ICB Islamic Bank Khulna Power Co. Ltd. Laferge Surma Cement Ocean Containers Ltd. Shahjalal Islami Bank Ltd. Bay Leasing & Investment Green Delta Mutual Fund Fareast Life Insurance Ltd. Power Grid Co. Ltd. Bangladesh General Insurance Co. SEBL 1st Mutual Fund Peoples Leasing & Finance Premier Leasing Ltd. RAK Ceramics Ltd. Un-Quoted CDBL Swift Venture Invst. Partner BD Ltd. Dhaka Vegetable Oil Ind. Ltd. Dun & Bradstreet Rating Agency Summit Uttaranchal PCL Summit Purbanchal PCL NCCBL Mutual Fund -1

3 A B A Z A A A A A A A A N A A A N N A A A A A A A A A A A A A A A A Z A A N A A N A A A A A A N

4 10 100 100 10 10 100 100 100 100 10 10 100 10 100 100 10 10 10 100 100 10 10 10 10 100 10 10 10 100 10

5,000 1,805 2,504 254,700 117,215 662 1,000 1,725 11,000 34,500 542,425 3,780 1,000,000 5,584 13 9,100 26,000 27,100 4,661 200 183,211 31,700 10,750 75,000 45,562 3,380 393,250 37,500 75,600 48,000 27,000 100 365 10 130,000 100 14,500 100 12,000 10 400,100 10 18,000 100 5,000 10 22,056 10 200,000 100 23,917 10 1,000,000 2,000 100 2,500 100 15,000 10 1,000,000 100 195,450 10 20 10 70 Total Quoted Share : 400,000 1 180,000 31,920 41,659 170,000 255,000 1,500,000

1 2 3 4 5 6 7 8

19,000 1,900,000 1,900,000 Total Unquoted Share : 233,838,962 227,005,623 Grand Total : 615,942,668 517,746,783 Total market value of quoted shares is lesser than cost price by Tk.8,26,33,429/- against which provisionof Tk.8,26,33,429/- is appearing in these financial statements (Note-8.1).

Summit Power Ltd.

Annexure-G

National Credit and Commerce Bank Limited


Statement of the Name of the Directors and the entities in which they have interest as on June 30, 2011

SL. No.

Name of Directors

Status with the NCCBL Chairman

Name of the firms/companies in which interested as proprietor, partner, director, managing agent, guarantor, employee etc.
Electro Mart Limited, Chairman Trade International Marketing Ltd., Chairman Newaz International Ltd., Managing Director The Royal Bengal Agency, Proprietor Royal International, Proprietor Central Insurance Company Ltd., Shareholder

% of interest
30.00% 35.00% 35.00% 100.00% 100.00% 5.00% 25.00% 16.67% 35.00% 16.00% 33.33%

1 Alhaj Md. Nurun Newaz

2 Mr. Mostafizur Rahman

Vice Chairman Sirina Garments & Textiles Ltd., Chairman & Managing Dircetor
RMS Textile & Apparels Ltd., Chairman & Managing Dircetor Dragoni Fashions Ltd., Chairman & Managing Dircetor CNS Ltd. , Chairman Crown Housing Ltd., Chairman

3 Mr. A.S. M. Main Uddin Monem

Director

Abdul Monem Ltd., Director Abdul Monem Sugar Refinery Limited, Director AM Energy Limited, Director AM Pharma Ltd., Managing Director
AM Securities & Financial Services Ltd., Managing Director

15.00% 41.67% 15.00% 17.50% 80.00% 16.67% 10.00% 25.00% 25.00% 10.00% 25.00% 100.00% 100.00% 0.20% 25.50% 38.18% 40.00% 26.34% 28.57% 40.04% 45.76% 33.66% 25.00% 22.22% 20.00% 28.57% 20.00% 35.00% 14.70% 6.51% 0.26% 80.00% 80.00% 80.00% 80.00%

Igloo Ice Cream Limited, Director Service Engin BD Limited Igloo Foods Limited, Director Igloo Dairy Limited, Director AML Infotech Limited, Director AM Channel Limited, Director Jainab Enterprise, Proprietor Jainab Overseas, Proprietor Pragati Insurance Co. Ltd., Director

4 Mr. Nurul Islam

Director

Unilac Sanowara (BD) Ltd., Managing Director Sanowara International Products Ltd., Managing Director Sanowara Garments Ltd., Managing Director Sanowara Drinks & Beverage Industries Ltd., Sanowara Plastic Products Ltd., Managing Director Sanowara Poultry & Hatchery Ltd., Managing Director Sanowara Packaging Industries Ltd., Managing Director Sanowara Dairying Industries Ltd., Managing Director Sanowara Dairy Foods Ltd., Managing Director Sanowara Consumer Products Limited, Managing Director Sanowara Holdings Limited, Managing Director
Sanur Hatchery & Feed Processing Limited, Managing Director

5 Mr. Md. Abdul Awal

Director

Prime Group of Industries Limited, Chairman & M.D. Prime Energy Limited, Managing Director Prime Textile Spinning Mills Limited, Managing Director Prime Composite Mills Limited, Managing Director Prime Steel Re-Rolling Mills Ltd., Managing Director Prime Dairy & Poultry Ind. Limited, Managing Director Prime Fisheries Industries Limited, Managing Director Prime Trans National Limited, Managing Director Prime Peoples Property Limited, Managing Director

Prime World Trade Limited, Managing Director Prime Super Printing Mills Limited, Managing Director Prime Synthetic Limited, Managing Director Prime Weaving Mills Limited, Managing Director

80.00% 80.00% 80.00% 80.00%

SL. No.

Name of Directors Mr. Md. Abdul Awal

Status with the NCCBL Director

Name of the firms/companies in which interested as proprietor, partner, director, managing agent, guarantor, employee etc.
Prime Dyeing & Finishing Mills Limited, Managing Director Prime Blended Yarn Mills Limited, Managing Director Prime Melange Spinning Mills Limited, Managing Director Prime Knitwears Limited, Managing Director Prime Information Technologies Limited, Managing Director Prime Textile Fabrics Limited, Managing Director Prime Knit Fabrics Limited, Managing Director Prime Fine Yarn Mills Limted, Managing Director Prime Ship Breakers Limited, Chairman Prime Ship Recycling Limited, Chairman Prime FSS Ship Breakers Ltd., Chairman Prime Financial Consultants & Equities Limited, Shareholder Steel Enterprise Limited, Managing Director Doleswar Iron & Eng. Works Limited, Managing Director Unique Steel Industries Limited, Managing Director

% of interest
80.00% 80.00% 4.56% 60.00% 50.00% 75.00% 75.00% 60.00% 50.00% 15.50% 20.00% 48.29% 0.80% 6.00% 8.33% 50.00% 19.00% 19.00% 50.00% 25.00% 50.00% 35.00% 5.00% 33.00% 33.00% 50.00% 10.00% 20.00% 30.00% 15.00% 25.00% 100.00% 79.88% 80.00% 19.10% 42.85% 36.66% 35.55% 62.50% 50.00% 9.37% 12.50% 74.00% 60.00% 20.00% 60.00% 31.29%

6 Mr.Amjadul Ferdous Chowdhury

Director

Jahanabad Ship Breakers Limited, Chairman B.S.A. Garments Ind. (Pvt.) Limited, Managing Director

B.S.A. Garments Ind.(Pvt.) Ltd., Managing Director B.S.A. Fashion Ltd., Managing Director B.S.A. Apparels Limited, Managing Director Vanguard Garments Ltd., Managing Director Vanguard Fashion Ltd., Managing Director Vanguard Shares & Securities Ltd., Chairman Vanguard Packages Ltd., Managing Director Vanguard Dresses Limited, Managing Director Glare Fashion Limited, Managing Director Royal Cement Ltd., Chairman Brave Royal Shipping Limited, Managing Director Vanguard Maritime Limited, Chairman Royal P P Bags Limited, Chairman Harrods Garments Ltd., Chairman Glare Trading, Proprietor

7 Mr. S.M. Abu Mohsin

Director

J. M. Fabrics Limited, Chairman Brothers Oxygen Ltd., Managing Director Food of Accomodation Limited, Chairman

8 Mrs. Masuda Begum

Director

Arrow Fashion (Pvt) Ltd., Managing Director Neox Garments Ltd., Managing Director Kashmir Garments Ltd., Managing Director Arrow Fabrics (Pvt) Ltd., Chairperson EVE's Harbal Beauty Care Saloon, Managing Partner

9 Mrs. Lutfun Nahar Begum 10 Mr. Abdus Salam

Director Director

Wazhico International Ltd Sagarika Textile Ltd.


The Bengal Electric Ltd., Managing Director Multiple Equipment & Engineering Ltd., Managing Director Gangatia Fisheries Ltd., Managing Director Bengal Shipyard Ltd. (Bengal Energy Ltd.), Managing Director

11 Mr. Mahbubul Alam Tara

Director

Bangladesh Progressive Enterprise Press Ltd. Managing Director

Progressive Poly-Pack Ltd., Managing Director

22% 15.00% 31.88% 25.00% 35.16% 12.37% 25.00%

12 Mrs. Sohela Hossain

Director

Mir Akhter Hossain Ltd., Director Mir Cement Ltd., Director Mir Real Estate Ltd., Director Mir Concrete Products Ltd.,Director Mir Telecom Ltd., Chairperson Mir Power Ltd., Director

SL. No.

Name of Directors

Status with the NCCBL Director Director

Name of the firms/companies in which interested as proprietor, partner, director, managing agent, guarantor, employee etc.
Nil Home Creations Ltd., Managing Director Kriya Consulting Limited, Director Agro Futures Limited, Director

% of interest
Nil 40.00% 20.00% 20.00%

13 Mr. Ainul Kabir 14 Mr. Khondkar Zakaria Mahmud

15 Mr. Md. Shahjahan 16 Mr. Yakub Ali

Director Chairman

Nil

Nil 23.81% 22.22% 21.83% 35.00% 18.35% 11.56% 33.35% 16.67% 1:03 33.34% 8.33% 10.60% 16.00% 23.34% 35.00% 31.25% 16.67% 13.33% 14.00% 22.11% 33.33% 1.00% 16.67% 16.84% 51.00% 20.00% 30.00% 20.00% 50.00% 25.00% 20.00% 50.00% 50.00% 65.00% 40.00% 40.00% 0.23% 5.00% 60.00%

Ali Fashion Limited, Chairman Anowara Apparels Ltd., Chairman Anowara Fashions Ltd., Chairman Anowara Paper Mills Ltd., Chairman Bangladesh Fertilizer & Agro Chemicals Ltd., Director Diamond Cement Ltd., Chairman Habib Printers & Publisher Ltd., Chairman Habib Share & Securities Ltd., Chairman & Managing Director Habib Sons, Managing Partner Habib Steels Ltd., Chairman HG Aviation Limited, Director Legacy Fashion Ware Ltd., Chairman Maam Textile Mills Limited, Chairman MTS Re-Rolling Mills Ltd., Chairman Mudys Navigation Ltd., Chairman Noor Garments Ltd, Chairman Regent Fabrics Ltd., Chairman Regent Power Ltd., Chairman Regent Spinning Mills Ltd., Chairman Regent Textile Mills Ltd., Chairman Regent Weaving Ltd., Chairman Saims Superior Limited, Chairman Valiant Fashion Ware Ltd., Chairman Valiant Garments Ltd., Chairman Vest-Thread and Accessories Ltd., Director Sam Sweater Ltd., Director Prime Shrimp Hatchery Ltd., Director Imam Accessories Ltd., Director Ben Hossain Holding Ltd., Director Ranal Designers Ltd., Director Imam Real Estate Ltd., Director River View Holding Ltd., Director Dress Designers Ltd., Director Imam Dyeing Knitting Printing & Finishing Ind.Ltd., Director

17 Mr.Ali Imam

Director

18 Mr. Tofazzal Hossain

Director

Agro Equipments Ltd., Chairman Protik Ceramic Ind. Ltd., Chairman National Life Insurance Co. Ltd., Chairman Islami Insurance Bangladesh Ltd., Chairman New Nation Garments Ltd., Managing Director

T.H. Fashions, Proprietor New Generation Trading, Proprietor T.H. Packages, Proprietor Great walls Land Properties Ltd., Director

100.00% 100.00% 100.00% 30.00% 30.00%

19 Mr. Fakhrul Anwar

Director

Golden Inn Chattagram Ltd. Managing Director Federal Insurance Co Ltd., Director Holy Crescent Hospital Ltd., Director Fakhrul Anwar & Bros, Proprietor Neptune Motors Ltd., Director

2.00% 3.00% 100.00% 13.00%

SL. No.

Name of Directors

Status with the NCCBL Director Director

Name of the firms/companies in which interested as proprietor, partner, director, managing agent, guarantor, employee etc.
Cross Trade Shipping Services Ltd., Managing Director Tuly Trading House, Proprietor National Life Insurance Company Limited, Shareholder The White Castle Limited, Chairman Hotel Lake Castle Limited, Director Bestclean Limited, Managing Director Rigs Limited, Managing Director Rigs Aviation Limited, Managing Director Rigs Publication Limited, Managing Director Rigs Properties Ltd, Managing Director Rigs Organic Fertilizer Ltd. Director NRB World Club Ltd. Director Alliance Capital Management Ltd. Director Rigs Fisheries Prokalpa, Proprietor Rigs Marketing, Managing Director Rigs Herbs, Proprietor Cox's Inn, Proprietor Madina Industrial Corporation (USA), President Modina Corporation (USA), President Shaptahik Kagoj Inc.(USA), President

% of interest
50.00% 100.00% 0.03% 10.00% 25.00% 64.44% 77.58% 20.00% 50.00% 50.00% 51.00% 14.29% 10.00% 100.00% 50.00% 100.00% 100.00% 90.00% 90.00% 95.00% 1.00% 5.00% 0.34% 0.22% 0.01% 3.00% 3.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 4.54% 5.00% 25.00% 5.00% 5.00% 5.00% 10.00% 10.00% 6.00% 16.46% 0.02% 3.00%

20 Mr. Md.Humayun Kabir 21 Mr. Din M. Rana

22 Mr. Md. Abul Bashar

Director

Prime Group of Industries Limited, Dy. Managing Director Prime Energy Limited, Dy. Managing Director Prime Textile Spinning Mills Limited, Dy.Managing Director Prime Composite Mills Limited, Dy. Managing Director Prime Steel Re-Rolling Mills Ltd., Dy. Managing Director Prime Dairy & Poultry Ind. Limited, Dy. Managing Director Prime Fisheries Industries Limited, Dy.Managing Director Prime Trans National Limited, Dy. Managing Director Prime Peoples Property Limited, Dy. Managing Director Prime World Trade Limited, Dy. Managing Director Prime Super Printing Mills Limited, Dy.Managing Director Prime Synthetic Limited, Dy. Managing Director Prime Weaving Mills Limited, Dy. Managing Director Prime Dyeing & Finishing Mills Limited, Dy. Managing Director Prime Blended Yarn Mills Limited, Dy. Managing Director Prime Melange Spinning Mills Limited, Dy. Managing Director Prime Knitwears Limited, Dy. Managing Director Prime Information Technologies Limited, Dy. Managing Director Prime Textile Fabrics Limited, Dy. Managing Director Prime Knit Fabrics Limited, Dy. Managing Director Prime Fine Yarn Mills Limted, Dy. Managing Director Prime Ship Breakers Limited, Managing Director Prime Ship Recycling Limited, Managing Director Prime FSS Ship Breakers Ltd., Managing Director Prime Financial Consultants & Equities Limited, Shareholder Steel Enterprise Limited, Dy. Managing Director Doleswar Iron & Eng. Works Limited, Dy. Managing Director

Unique Steel Industries Limited, Dy. Managing Director Jahanabad Ship Breakers Limited, Managing Director

23 Mr. Md. Harunur Rashid

Director

Nazma Construction Company, Proprietor NCC Consortium, Proprietor Apurba Embrioidery, Proprietor HR Bricks, Proprietor Nazma Construction Company Consortium, Proprietor Faridgonj Fisheries Ltd., Managing Director Global Insurance Ltd., Sponsor
Desh Medical College & Hospital , Chairman Gulshan Point (Pvt) Ltd., Managing Director Gold Vision Industries Ltd., Managing Director Urban Responses Ltd., Managing Director Eastern Logistics Ltd., Director Maxwell Electronics, Proprietor

4.17% 10.00% 100.00% 100.00% 100.00% 100.00% 100.00% 95.00% 2.16% 25.00% 30.00% 50.00% 50.00% 10.00% 100.00% Nil Nil

24 Mr. Khairul Alam Chaklader

Director

25 Mr. Md. Moinuddin 26


Professor Shahid Uddin Ahmed, Ph.D.

Director
Independent Director

Nil Nil

Annexure-H

National Credit and Commerce Bank Limited


Related Party Transactions: as at June 30, 2011 Related Party Transactions: The Bank in normal course of business has had transactions with other entities that fall within the definition of Related party as contained in Bangladesh Accounting Standards (BAS-24) (Related Party Disclosures) and as defined in the BRPD Circular # 14 dated 25 June 2003. The Significant Related party transactions during the year were as follows: SL. No. Name of the Organization Directors relation with the concern Managing Director Proprietor Managing Director Proprietor Guarantor Guarantor Managing Director Managing Director Guarantor Managing Director Representing Directors Figure in Lac Nature of Outstanding Outstanding Total Transaction (Funded) (Non-funded) Outstanding SOD(G) CC(H) HBL Loan (G) CC(H) CC(H) SOD(G) CC(H) B/G B/G CC(H) LTR B/G Total 103.90 48.23 70.95 38.83 197.02 76.14 9.88 147.00 691.95 6.17 18.45 102.79 1.11 128.52 103.90 48.23 70.95 38.83 197.02 76.14 9.88 6.17 18.45 249.79 1.11 820.47

1 Habib Shares & Securities Ltd. 2 New Generation Trading 3 Self Prograsive poly pack Limited 4 M/S. Fahad Traders 5 M/s.Mr.A.Parvez Chowdhury Self 6 Chicks Field Sanowara Drinking & Bevarage Inds. Ltd. Sanowara Dairy & Food Ltd. 7 Samsong Corporation 8 Prime Steel Re-rolling Mills Limited

Mr. Yakub Ali Mr. Tofazzal Hossain Mr. Mahabubul Alam Tara Mr. Fakrul Anowar Mr.Amjadul Ferduse Chowdhury Mr. Humayun Kabir Mr. Nurul Islam

Mr. Khairul Alam Chaklader Mr.Md. Abdul Awal

Annexure-I

National Credit and Commerce Bank Limited


Corporate Tax Position as on June 30, 2011 Current Tax accounts Tax Liability as Order/Return Excess/ (Shortage) provision 5=(3-4) (6,862,957) Advance Income Tax paid 6 139,829,928

Accounting Year

Assessment Provision as per per Assessment Year

Dues/ (Refund)

Remarks

1 2001

2 2002-2003

3 139,829,928

4 146,692,885

2003

2004-2005

163,388,876

86,888,016

76,500,860

159,999,990

2004 2005 2006

2005-2006 2006-2007 2007-2008

221,398,901 322,623,135 518,131,245

222,971,622 322,779,734 571,482,877

(1,572,721) (156,599) (53,351,632)

226,708,126 322,779,734 544,969,341

2007

2008-2009

739,994,184

768,858,741

(28,864,557)

735,898,823

2008

2009-2010

828,016,517

842,248,545

(14,232,028)

828,016,518

2009 2010 Total

2010-2011 2011-2012

768,839,222 1,057,110,305 4,759,332,313

768,839,222 1,058,426,103 4,789,187,745

768,839,222 (1,315,798) 1,058,426,103 (29,855,432) 4,785,467,785

7=(4-6) 8 6,862,957 The Bank has filed appeal with the High Court Division of the Supreme Court of Bangladesh against appeal decision for excess tax liability of Tk.68.63 lac which has remained pending till date. (73,111,974) According to revised assessment and appeal decision tax liability comes to Tk.8.69 crore and refund of Tk.7.31 Crore against which tax department has filed an appeal with Appellate Tribunal, The Appellate Tribunal kept the decision of DCT unchanged against which the Bank has filed appeal with High Court Division to established it's right under first proviso to section 82 of ITO-1984. (3,736,504) Assessment Completed - Assessment Completed 26,513,536 Assessment completed under section 82B/120/173 of ITO 1984, but the Bank has filed an appeal to Appellate Tribunal. 32,959,918 Assessment completed under section 82BB/(3)/83(2)/120/173 of ITO 1984, but the Bank has filed an appeal to the Appellate Tribunal. 14,232,027 The Bank has filed second appeal to the Appellate Tribunal to established its rights as per income tax return. - Return filed but assessment order yet to receive. - Return filed but assessment order yet to receive. 3,719,960

Annexure-J

National Credit and Commerce Bank Limited


Financial Statements for the year ended June 30, 2011

a.(i) Disclosure regarding outstanding Repo as on 30 June, 2011. Amount (Ist leg cash consideration) 6,963,979,977 6,963,979,977

Sl No 01 Total

Counter Party Name Bangladesh Bank

Agreement Date 30.06.2011

Reversal Date 03.07.2011

a.(ii) Disclosure regarding outstanding Reverse Repo as on 30 June, 2011. Amount (Ist leg cash consideration) NIL Total -

Sl No

Counter Party Name

Agreement Date

Reversal Date

b.Disclosure regarding overall transaction of Repo and Reverse repo. Minimum Maximum outstanding during outstanding during the year the year Securities sold undrer repo: i) with Bangladesh Bank ii)with other banks& FIs Securities Purchased undrer repo: i)from Bangladesh Bank ii)from other banks& FIs 8,351,313,091 1,993,460,852 Daily average outstanding during the year 6,176,958,486 902,239,837 NIL

Annexure-K

National Credit and Commerce Bank Limited and its Subsidiary CONSOLIDATED FINANCIAL HIGHLIGHTS
For the period ended June 30, 2011 Sl. No.

Particulars Paid-up Capital Total Capital Capital surplus / (Deficit) Total Assets Total Deposits Total Loans & Advances Total Contingent Liabilities Credit Deposit Ratio Percentage of classified loans against total Loans & Advances Profit after tax & provision Amount of classified loan during current year Provision kept against classified Loans Provision surplus / (deficit) Cost of Fund ( %) Interest earning Assets Non-interest earning Assets Return on Investment (ROI) Return on Assets (ROA) Income from Investment Earning per Share ( Taka) Net income per Share (Taka) Price Earning Ratio (Times)

At June 30, 2011 5,941,654,350 10,843,328,981 1,953,317,981 95,118,945,559 76,514,359,374 67,084,100,333 19,603,038,708 0.88:01 4.87% 812,193,769 3,225,499,000 1,337,100,001 10.53% 86,644,364,550 8,474,581,009 11.34% 1.71% 1,057,474,096 1.37 1.37 -

At December 31, 2010 4,501,253,300 10,033,986,280 1,760,322,280 83,554,177,553 67,961,244,777 63,230,141,628 17,492,550,575 0.93:01 2.27% 2,371,678,769 1,425,280,000 742,802,000 9.31% 74,691,625,856 8,862,551,697 14.95% 2.84% 1,642,016,484 5.33 5.33 12.91

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22

Sd/A.K. Md. Siddique Deputy Managing Director & Chief Financial Officer

Sd/Mohammed Nurul Amin Managing Director & Chief Executive Officer

Annexure-L

National Credit and Commerce Bank Limited FINANCIAL HIGHLIGHTS OF THE BANK
As on June 30, 2011 Sl. No.

Particulars Paid-up Capital Total Capital Capital surplus / (Deficit) Total Assets Total Deposits Total Loans & Advances Total Contingent Liabilities Credit Deposit Ratio Percentage of classified loans against total Loans & Advances Profit after tax & provision Amount of classified loan during current year Provision kept against classified Loans Provision surplus / (deficit) Cost of Fund ( %) Interest earning Assets Non-interest earning Assets Return on Investment (ROI) Return on Assets (ROA) Income from Investment Earning per Share ( Taka) Net income per Share (Taka) Price Earning Ratio (Times)

At June 30, 2011 5,941,654,350 10,843,328,981 1,953,317,981 94,974,352,845 76,469,631,744 66,689,531,578 19,603,038,708 0.87:01 4.87% 730,327,091 3,225,499,000 1,337,100,001 10.53% 86,227,171,327 8,747,181,518 11.35% 1.54% 1,057,474,096 1.23 1.23 -

At December 31, 2010 4,501,253,300 10,033,986,280 1,760,322,280 83,554,177,553 67,961,244,777 63,230,141,628 17,492,550,575 0.93:01 2.27% 2,371,678,769 1,425,280,000 742,802,000 9.31% 74,691,625,856 8,862,551,697 14.95% 2.84% 1,642,016,484 5.33 5.33 12.91

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22

Sd/A.K. Md. Siddique Deputy Managing Director & Chief Financial Officer

Sd/Mohammed Nurul Amin Managing Director & Chief Executive Officer

NCCB Securities and Financial Services Limited

Statement of Financial Position As on 30 June 2011 Annexure-M-1


SOURCES OF FUNDS: Notes 30 June 2011 Taka 250,000,000 81,866,677 331,866,677

Share Capital Retained Earnings Total Sources of Funds APPLICATION OF FUNDS: Non current Assets Property, Plant & Equipment Investments-Memberships at cost Intangible Assets Preliminery Expenses Current Assets Advance and prepayments Margin Loan to Customer Accounts Receivable Cash and Cash Equivalents

3 4

5 6 7 8

14,680,184 19,401,385 672,000 3,185,367 37,938,936 10,000 2,823,976,005 19,947,578 3,229,031 2,847,162,614

9 10 11 12

Current Liabilities Accounts payable Short Term Loan Provision for Expenses Provision for Income Tax Net Current Assets Total Application of Funds

13 14 15 16

111,377,995 2,429,407,250 557,652 11,892,975 2,553,235,872 293,926,742 331,865,678

The annexed notes form an integral part of these financial statements.

Sd/Kazi Rafiquzzaman
Vice President

Sd/Md. Manjum Ali


Senior Vice President

NCCB Securities and Financial Services Limited


Statement of Comprehensive Income
For the Period from 07 March to 30 June 2011

Annexure-M-2
Notes Operating Income: Brokerage Commission Interest on Margin Loan Other Operating Income Less: Operating Expenses Net Income from Operation Less: Office & Administrative Expenses Profit before Financial Expenses Less: Financial Expenses Net Profit before Tax Less: Provision for Income Tax Net Profit/(Loss) after Tax 23 22 17 18 19 20 21 71,006,718 166,706,647 2,032,788 239,746,153 4,411,388 235,334,765 20,486,357 214,848,408 112,127,087 102,721,321 20,854,643 81,866,678 30 June 2011 Taka

The annexed notes form an integral part of these financial statements.

Sd/Kazi Rafiquzzaman Vice President

Sd/Md. Manjum Ali Senior Vice President

NCCB Securities and Financial Services Limited Statement of Cash Flows For the Period from 07 March to 30 June 2011 Annexure-M-3
30 June 2011 Taka A. Cash Flow from Operating Activities: Net Profit/(Loss) after Tax Adjustments for: Depreciation Changes in Current Assets and Liabilities: Increase in: Receivable from Client Receivable from DSE Receivable from CSE Advance against Office Rent DSE Membership CSE Membership Increase in: Accounts payable Liabilities for Expenses Provision for expenses Net cash flow from operating activities B. Net Cash flow from Investing Activities Acquisition of Fixed Assets Intangible Assets Preliminery Expenses Net cash used in investing activities Cash Flow from Financing Activities: Loan from NCC Bank Issue of Share Capital Net cash flow from financing activities Net Increase / Decrease, Cash or Cash Equivalent (A+B+C) Opening Cash and Cash equivalents Closing Cash & Cash Equivalents 81,866,677 878,020 82,744,697

(2,823,976,005) (16,549,353) (3,398,225) (11,000) (400,385) (19,001,000) 111,377,995 557,652 11,892,976 (2,656,762,648)

(15,558,204) (672,000) (3,185,367) (19,415,571)

C.

2,429,407,250 250,000,000 2,679,407,250 3,229,031 3,229,031

Sd/Kazi Rafiquzzaman Vice President

Sd/Md. Manjum Ali Senior Vice President

NCCB Securities and Financial Services Limited Statement of Changes in Equity For the Period from 07 March to 30 June 2011 Annexure-M-4
Particulars Paid up Capital Statutory Reserve General Reserve Other Reserve Retained Earnings Total

Tk. Opening Balance 07.03.2011 Net Profit after Tax


Balance as of March 31, 2011

Tk. -

Tk. -

Tk. -

Tk. 81,866,678 81,866,678

Tk. 250,000,000 81,866,678 331,866,678

250,000,000 250,000,000

Sd/Kazi Rafiquzzaman Vice President

Sd/Md. Manjum Ali Senior Vice President

NCCB Securities and Financial Services Limited Notes to the Financial Statements For the Period from 07 March to 30 June 2011

Annexure-M-5
01 Significant Accounting Policies & Other Material Information: 1.1 Legal Form of the entity: NCCB Securities and Financial Services Ltd. as a Subsidiary company of NCC Bank Limited has been incorporated as a private limited company with the Registrar of Joint Stock Companies and Firms, Dhaka, Bangladesh bearing Registration No.C - 83683/10 dated April 04, 2010 under the Companies Act, 1994 effect from 07 March 2011 having registered office at 195, Sena Kalayan Bhaban, Suite # 1504 (15th floor), Motijheel C/A, Dhaka-1000. 1.2 Nature of Business : The Main objective of the company is to act as a full fledged Stock Broker & Stock Dealer to execute buy and sell order and to maintain own portfolio as well as customers portfolio under the discretion of customers. The company also performs the other activities relates to Capital Market as and when regulators permits the company to carry out activities as per their guidelines. 2 Significant Accounting Policies 2.1 Basis of Preparation of Financial Statements The Financial Statements, namely, Statement of Financial Position, Statement of Comprehensive Income, Statement of Cash Flows, Statement of Changes in Equity and relevant notes thereto, of NCCB Securities and Financial Services Limited are prepared on a going concern and accrual basis under historical cost convention, Bangladesh Accounting Standards (BAS) as adopted by the Institute of Chartered Accountants of Bangladesh (ICAB), Companies Act-1994, and other laws and rules applicable thereto. 2.2 Functional and presentational currency These financial statements are prepared in Bangladesh Taka (Taka/Tk), which is the Companys functional currency. All financial information presented in Taka has been rounded to the nearest integer. 2.3 Use of estimates and judgments The preparation of financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revision of accounting estimates are recognized in the period in which the estimate is revised and in any future periods affected. Revenue Recognition: Income from brokerage commission is recognised on daily basis in the profit and loss account after receiving the trading note of securities transacted from Dhaka Stock Exchange Limited & Chittagong Stock Exchange Limited, at which point performance is assured to be completed. ii Interest income on STD & Margin Loan Account is recognized when the respective banks credited on accounts. 2.4 Cash flow statement: Cash flow statement has been prepared as per Bangladesh Accounting Standard BAS 7 Under Indirect Method. 2.5 Property, plant and equipment Recognition and measurement Items of property, plant and equipment are measured at cost less accumulated depreciation and impairment losses, if any. Cost includes expenditures that are directly attributable to the acquisition of the asset. Subsequent costs The cost of replacing part of an item of property, plant and equipment is recognised in the carrying amount of the item if it is probable that the future economic benefits embodied within the part will 5

amount of the item if it is probable that the future economic benefits embodied within the part will flow to the Company and its cost can be measured reliably. The costs of the day-to-day servicing of property, plant and equipment are recognised in the profit and loss account as incurred. Depreciation Depreciation is charged to property, plant and equipment & Furniture & Fixture on a diminishing balance method at rates varying from 20% & 10% to 20%. 2.6 Intangible assets Recognition and measurement Computer software acquired by the Company, which have finite useful lives, are measured at cost less accumulated amortisation. Amortisation of intangible assets Intangible assets are amortised at the rate of 20% on diminishing balance Provision for Current tax Provision for tax is assessed under section 82C of the Income Tax Ordinance (ITO) 1984 on income from company's normal course of business and at 37.5% on company's income from other sources. Under section 82C, income tax deducted under certain sections of the ITO is treated as final discharge of tax payer's tax liabilities from that source. 2.7 General ii. Figures have been rounded off to the nearest taka. June 30, 2011 03 Share Capital 3.1 Authorised Capital (10,000,000 shares @ of Tk. 100 each) 1,000,000,000 1,000,000,000 3.2 Issued, Subscribed and Paid up Capital 250,000,000 (2,500,000 Shares @ of Tk. 100 each) 250,000,000 3.3 Particulars of Shareholders and their Shareholdings: Shareholders Number of Share Amount in BDT NCC Bank Limited Mr. Gazi Hassan Mahmood 4 Retained Earnings Opening balance Add: net profit during the year Closing retained earnings Property, plant & Equipment Property Plant & Equipment at Cost Less: Accumulated Depreciation Total: Annexure-'I' may kindly be seen for details. 6 Investments-Memberships at cost: Membership of Dhaka Stock Exchange Limited Membership of Chittagong Stock Exchange Limited 22,045,263 7,365,079 14,680,184 2,499,999 1 249,999,900 100 250,000,000 81,866,677 81,866,677

400,385 19,001,000 19,401,385 820,000 148,000 672,000 14,100 90,000

Intangible Assets Software at cost Less: Amortization during the period Preliminary Expenses Trade Licence & Tin Certificate Securities & Exchange Comission Charge 6

Registration fee RJSC Stamp & Share Charges (Rah. & Assaciates) Salman Siddiqur Rahman for TIN Audit Fee (Rah. & Mostafa) DSE Entrance Fee & Club Member Fee Stock Broker Registration Fee DSE ,CSE Membership & Transfer Fee Less: Amortization during the period 9 Advance and Prepayment: Suspense Account Sundry debtors Security Deposit into T & T Margin Loan to Clients Margin Loan to Clients Accounts Receivable Receivable from Dhaka Stock Exchange Limited Receivable from Chittagong Stock Exchange Limited

June 30, 2011 474,225 85,000 6,000 15,000 1,500,000 40,000 1,811,021 4,035,346 849,979 3,185,367 10,000 1,000 11,000 2,823,976,005

10

11

16,549,353 3,398,225 19,947,578

12

Cash and Cash equivalents Cash in Hand Cash at Bank Balances: IFIC Bank Ltd. STD Bank A/C # 1090-000294-041 NCC Bank Limited Current Deposit A/C # 0002-0210024283 Accounts Payable Security Deposit Sundry Creditors Payable to CDBL Payable to CSE Spot Payable to Suppliers Payable to NCC Bank Limited

5,948 3,215,703 7,380 3,229,031 24,677,630 20,050,000 3,704,551 48,128 1,795,000 61,102,686 111,377,995 15,523,731 45,578,955 61,102,686

13

13.1 Payable to NCC Bank Ltd. Fixed Assets Profit earned from January 01, 2011 to March 06, 2011

14

Short Term Loan - Bank Overdraft NCC Bank Ltd. A/C # 012-000-2511 Liabilities for expenses Office Rent Expenses LFA Expenses Mobile Bill Salary & Wages

2,429,407,250 2,429,407,250 1,713 149,400 34,212 372,327 557,652

15

16

Provision for Income Tax Opening balance Add: provision made during the period 7

20,854,643

Less: Adjusted during the period Less: Advance income tax paid and deducted at sources On Brokerage Commission Tax deducted by Dhaka Stock Exchange Limited Tax deducted by Chittagong Stock Exchange Limited Net balance at the end of the period 17 Brokerage Commission Brokerage Commission DSE Brokerage Commission CSE

June 30, 2011 20,854,643 20,854,643

8,370,855 590,813 8,961,668 11,892,975

66,277,174 4,729,544 71,006,718 166,706,647 95,000 79,838 54,800 1,601,800 7,500 3,030 190,820 2,032,788 784,154 72,108 3,348,342 206,784 4,411,388

18 19

Interest on Margin Loan Other Operating Income Account Opening Fee Account Clossing Fee BO Account Maintenance Fee Service Charge Margin Account Opening Fee Postage Charge Recovery Interest of IFIC Bank Operating Expenses Howla Charge DSE Howla Charge CSE Laga Charge DSE Laga Charge CSE Office & Administration Expenses Salary & Allowances Basic Salary House Rent Allowance Entertainment Allowance Medical Allowance P.F.Contribution Casual Wages Other Allowances

20

21

4,447,194 1,295,158 234,940 472,081 315,584 109,568 1,232,269 8,106,794

Rent,taxes,insurance,electricity etc. Rent Office Taxes Electricity Office

2,024,611 19,082 277,816 2,321,509

Postage, stamp, telecommunication etc. Postage Telephone Mobile Internet

16,262 72,988 119,866 4,300 213,416 8

June 30, 2011 Stationery, printing, Advertisement etc. Stationery Printing Advertisement 223,523 120,845 11,592 355,960

Depreciation and Repair of Bank's assets Depreciation Repair and maintenance of fixed assets Repair and maintenance of premises

878,020 3,161,301 551,150 4,590,471

Other Expenses Entertainment Car expenses Papers and periodicals Trade Subscription Traveling & Conveyance Carrying charge Laundry and cleaning Training expenses Water, Sewerage and gas CDBL charge Utility charge Liveries & Uniform Other Total: Total Office & Administration Expenses 22 Financial Expenses
Interest on Bank Overdraft maintained with NCC Bank Limited, Motijheel Main Branch

254,835 328,000 28,469 191,000 502,975 7,740 12,651 13,575 88,460 3,360,146 100,000 4,956 5,400 4,898,207 20,486,357

Bank Charge 23

112,057,248 69,839 112,127,087

Related Party Transactions NCCB Securities & Financial Services Limited (NCCBSFSL) is a fully owned subsidiary company of National Credit and Commerce Bank Limited (NCCBL). NCCBLSFL was separated from NCCBL on March 07, 2011. NCCBLSFL has availed BDT.2,429,407,249.63/- from NCCBL as short term loan for its operating activities.

Sd/Kazi Rafiquzzaman Vice President

Sd/Md. Manjum Ali


Senior Vice President

NCCB Securities and Financial Services Limited


Schedule of Property, Plant & Equipment as on June 30, 2011 Annexure-M-6 Particulars Cost Balance as on Addition/Disposal Balance as on 07.03.11 During the period 30.06.11 5,780,700 5,780,700 6,897,414 9,300 6,906,714 9,332,676 25,173 9,357,849 22,010,790 34,473 22,045,263 Rate of Depreciation Depreciation Balance as on Charged for 07.03.11 the period 2,143,503 353,187 1,974,884 305,779 2,368,672 219,054 6,487,059 878,020 Balance as on 30.06.11 2,496,690 2,280,663 2,587,726 7,365,079 Written Down Value As on 30.06.11 3,284,010 4,626,051 6,770,123 14,680,184

Computer & Peripherals Office Equipment Furniture & Fixture Total:

10% 20% 20%