difference in balance sheet items between eastern bank and nitol insurance company limited

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  • 7/29/2019 Difference in Balance Sheet Items Between Eastern Bank and Nitol Insurance Company Limited

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    Difference in balance sheet items between Eastern Bank

    and Nitol insurance company Limited

    Cash and balances

    EBL has different items of cash .They have cash in hand including local currency and foreign

    currency. Their local currency reserved in Bank and with their subsidiaries. According to

    central bank policy, They maintain statutory liquidity ration (SLR) of minimum 19% based

    on weekly average demand and time liabilities of immediate preceding two months.EBL also

    maintain a CRR of minimum 5.5% on daily basis based on weekly average demand and time

    liabilities of immediate preceding two months.

    In current deposit accounts with -

    Agrani bank,Janata Bank,Bangladesh Krishi Bank,The Trust Bank limited ,AB Bank

    limited,Trust bank ltd ,Sonali bank,National bank,The citybank,Rupali bank,Islami bank

    ltd.Pubali bank,United commercialbank,Dutch bangla bank,BRAC bank,NCC bank.

    In special notice deposit accounts with-

    Sonali bank ltd. Janata bank ltd. Agrani bank ltd. Bank Asia ltd. Basic bank ltd. Banglades krishi bank ltd.

    Balance Outside in Bangladesh

    The Bank of Tokyo Mitsubishi. Tokyo Standard Charted Bank Nepal Bangladesh Bank limited HSBC, New York etc

    On the other hand, Nitol insurance company has different cash items of.they have cash in

    hand, cash at different banks and fixed deposit with different banks like :

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    Agrani bank Janata Bank Rupali bank Sonali bank Brac United commercial

    Money at call and short notice

    With banking companies-

    Jamuna Bank Limited Prime Bank Limited

    With Non Banking Financial Institution

    People Leasing And Financial Service Limited Lanka Bangla Finance limited.

    On the other hand, Nitol insurance company has not any Money at call and short notice

    Investment

    Government (investment in government securities)

    Treasury bills Bonds : 5 year treasury bonds and 10 year treasury bonds Prize bonds

    They have also investment in-

    Debentures ( investment corporations in Bangladesh ( ICB)and house buildingfinance corporation (HBFC)

    Corporate bonds (Orascom bonds and trust bank subordinated bond). Ordinary shares ( quoted and unquoted) Preference shares

    On the other hand, the basic investment policy of this insurance company is that they mainly

    invest on share market. They have share on:

    Grameen phone Lanka bangla Modern cement Dhaka bank ltd. Pubali bank ltd.

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    Fixed Assets

    Fixed assets of EBLS are Freehold land development, buildings on freehold land, machinery

    and equipment, computer and network equipments, furnitures and fixtures, vehicles, leasedassets, software etc.

    On the other hand, Furnitures & fixtures, office equipment, computers, air-conditioner,

    refrigerator, telephone installation, office car, electrical equipment, office space.

    Balance of funds and accounts

    Nitol insurance company basically generate fund from

    Fire Insurance business Marine Insurance Business Miscellaneous Business

    The Basic Difference Between two companies that one is Bank thats their business is mainly

    on deposit and other account

    Current deposit Saving bank deposit Fixed deposit. Bearer certificates deposit

    They basically invest on share and bond market in huge capital on generates business- Fire

    insurance, Motor insurance, and Marine insurance.

    EBL has Balance in Bangladesh payable on demand in One bank limited,Citibank na,Dutch-

    bangla bank ltd,Gps finance ltd.,Premier bank ltd Pubali bank ltd,IPDCBD ltd,Habib bank

    ltd,Janata bank ltd,sonali bank bank ltd,State bank ltd,HSBC.

    Term borrowings on Sonali bank ltd,Uttarabank ltd.Bangladesh commerce bank ltd,Unitedcommercialbank,Trust,Jamuna,Citibankbank ltd.,Peoples leasing and financial services

    Balance outside in Bangladesh: non interest bearing

    Standard chartered bank, new York Citibank NA Mashreqbank Jp morgan chase jp morgan chase bank ,Frankfurt Wachovia bank Habib American Standard chartered new York OBU

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    % of holdings shares

    Slab wise list:

    2010

    Shareholders group No. of shares ( %) of shareholding

    directors 10,026,490 3.43%

    General public 253,514,160 86.80%

    Financial institutions 28,540,490 9.77%

    2011

    Shareholders group No. of shares ( %) of shareholding

    directors 30,480,330 6.73%

    General public 377,809,189 83.45%Financial institutions 44,436,248 9.82%

    Nitol has-

    Shareholders group No. of shares ( %) of shareholding

    Sponsors & directors 7,560,000 40%

    General public 11,340,000 60%

    Borrowings

    EBL borrows fund from different banks, financial institutions and agents it includes balance

    in Bangladesh bank and outside of the Bangladesh. As a bank they have different deposits

    accounts through they full fill their fund requirements. On the other hand, Nitol also borrow

    from different banks and financial institutions.

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    Nitol insurance company

    Comparison between 2010 and 2011 balance sheet items

    Issued, subscribed and paid up capital

    In 2011, Issued, subscribed and paid up capital was 189000000. In 2010, it was 168000000.

    So we can say that Issued subscribed and paid up capital increased by 12.5% in 2011.

    Reserve

    Reserve for exceptional losses, general reserve and profit and loss appropriation was

    97219242 in 2010. On the other hand, it was increased by 105761783in 2011.So, total reserve

    increased by 8542541 or 8.786882951% in 2011.

    155

    160

    165

    170

    175

    180185

    190

    195

    2010 2011

    Paid Up Capital (BDT Million)

    Paid Up Capital (in

    Million)

    12.5%

    168

    189

    92

    94

    96

    98

    100

    102

    104

    106

    108

    2010 2011

    Reserve (in Million)

    Reserve (in Million)

    8.79%

    97.22

    105.76

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    Balance of funds

    Balance of fire insurance, Marin insurance, motor insurance and miscellaneous insurance was

    109086161in 2010. In contrast, it was increased by 107348089 in 2011. So balance of funds

    decreased by 1738072 or 1.593302014%.

    Premium

    Premium deposit was 8262650 in 2010. On the other hand, premium deposit was 9885507 in

    2011. So we can conclude that premium deposit increased by 1622857 or 19.64087793% in

    2011.

    106

    106.5

    107

    107.5

    108

    108.5

    109

    109.5

    2010 2011

    Balance of funds (in Million)

    Balance of funds (in Million)

    109.09

    107.35

    1.59%

    7

    7.5

    8

    8.5

    9

    9.5

    10

    10.5

    2010 2011

    Premium (in Million)

    Premium (in Million)

    8.26

    9.89

    19.64%

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    Dividend

    Total dividend provided by the company was 21000000 in 2010. In contrast, it was 24570000

    in 2010. So dividend increased by 3570000 or 17% in 2011.

    Liabilities and provision

    The total amount of liability in 2010 was 32391729 in which includes outstanding claims,

    and amount due to other persons or bodies carrying on insurance business. It was reached

    48390997 in 2011. So, liabilities and provision increased by 15999268 or 49.39306574% in

    2011.

    19

    20

    21

    22

    23

    24

    25

    2010 2011

    Dividend (in Million)

    Dividend (in Million)

    21

    2

    4.57

    17%

    0

    10

    20

    30

    40

    50

    60

    2010 2011

    Liabilities & Provision (in Million)

    Liabilities & Provision (in

    Million)

    32.39 4

    8.39

    49.39%

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    Sundry creditors

    The total amount of sundry creditors was 68760614 in 2010 in which includes outstanding

    and accruing express. It was 69294303 in 2011. So, sundry creditors increased by 533689 or

    0.776155082% in 2011.

    Investment

    Companys total investment in 2010 was 13344843 in which includes national investment of

    900000 and shares of 4344843.on the other hand, in 2011, total investment was 12094843 in

    which contains national investment of 9000000 and shares 3094843. So we can conclude that

    investment decreased by 1250000 or 9.366914245% in 2011.

    68.4

    68.6

    68.8

    69

    69.2

    69.4

    2010 2011

    Sundry Creditors (in Million)

    Sundry Creditors (in Million)

    68.76

    69.29

    0.78%

    11.4

    11.6

    11.8

    12

    12.2

    12.412.6

    12.8

    13

    13.2

    13.4

    13.6

    2010 2011

    Investment (in Million)

    Investment (in Million)

    13.34

    12.09

    9.37%

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    Interest, dividends and rent receivables

    The total amount of interest, dividends and rent receivables was 11397491 in 2010. But in

    2011, it was 13834125 in 2011.So we can say that interest, dividends and rent receivables

    increased by 2445634 or 21.45765239% in 2011.

    Sundry debtors

    The total amount of sundry debtors was 136091605 in 2010. In 2011, it was 155657109.

    Sundry debtors increased by 19565504 or 14.37671633% in 2011.

    0

    2

    4

    6

    810

    12

    14

    16

    2010 2011

    Interest, Dividend & Rent Receivables (in

    Million)

    Interest, Dividend & Rent

    Receivables (in Million)11.4

    13.83

    21.46%

    125

    130

    135

    140

    145

    150

    155

    160

    2010 2011

    Sundry Debtors (BDT Million)

    Sundry Debtors (BDT

    Million)

    136.09

    155.66

    14.38%

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    Cash and bank balance

    Cash and bank balance amount was 263174567 in 2010 in which includes cash at banks,

    fixed deposit with banks and cash in hand, it was 297762263 in 2011.So, cash and bank

    balance increased by 34587696 or 13.14249184% in 2011.

    Fixed assets

    The total amount of fixed assets was 79652196 in 2010.But in 2011, it was 73312802. So

    fixed Assets decreased by 6339394 or 7.958843972% in 2011.

    240

    250

    260

    270

    280

    290

    300

    310

    2010 2011

    Cash and bank balance (BDT Million)

    Cash and bank balance

    (BDT Million)

    263.17

    297.76

    13.14%

    70

    71

    72

    73

    74

    75

    76

    77

    78

    79

    80

    81

    2010 2011

    Fixed Assets (BDT Million)

    Fixed Assets (BDT Million)79.65

    73.31

    7.96%

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    Comparison between 2010 and 2011 balance sheet items

    Assets

    Cash

    The Cash amount was 3681327496 in 2010 in which includes cash at banks, fixed deposit

    with banks and cash in hand; it was 6022765771 in 2011.so, cash and bank balance increased

    by 2341438275 or 60.60309637% in 20

    0

    1000

    2000

    3000

    4000

    5000

    6000

    7000

    2010 2011

    Cash (BDT Million)

    Cash (BDT Million)

    3681.33

    6022.77

    60.60%

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    Balance with other banks and financial institution:

    In 2010, Balance with other banks and financial institution was 4731742233. In 2011, it was

    3682144044. The amount of Balance with other banks and financial institution decreased by

    22.18206608 %

    Investments

    In 2010, EBLs investment amount was 9827197073. In 2011, it was reached 16910527988.

    So, we can say that investment Increased by 72.07885274% in 2011.

    0

    1000

    2000

    3000

    4000

    5000

    2010 2011

    Balance with other banks and financial

    institution Fixed Assets (BDT Million)

    Balance with other banks and

    financial institution Fixed Assets

    (BDT Million)4731.74

    3682.14

    22.18%

    0

    2000

    4000

    6000

    8000

    10000

    12000

    14000

    16000

    18000

    2010 2011

    Investments (BDT Million)

    Investments (BDT Million)

    98

    27.20

    16910.53

    72.08%

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    Loans and advances

    In 2010, the amount of loans and advances was 58607085693.in 2011, it was

    81057922762.So, loans and advances Increased by 38.30737667% in 2011.

    Fixed assets

    The total amount of fixed assets was 3626121162 in 2010.But in 2011, it was 4465566721.So, fixed Assets decreased by 839445559 or 23.14995891% in 2011.

    0

    10000

    20000

    30000

    40000

    50000

    60000

    70000

    80000

    90000

    2010 2011

    Loans and advances (BDT Million)

    Loans and advances (BDTMillion)

    58607.09

    810

    57.92

    38.31%

    0

    500

    1000

    1500

    20002500

    3000

    3500

    4000

    4500

    5000

    2010 2011

    Fixed assets (BDT Million)

    Fixed assets (BDT Million)

    3626.12

    4465

    .57

    23.15%

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    Liabilities and shareholders equity

    Borrowings from other banks, financial institutions and agents

    In 2010, the amount of Borrowings from other banks, financial institutions and agents

    Were 9,257,404,358 in 2010. On the other hand, it reached at 21,652,484,276 in 2011. So,

    Borrowings from other banks, financial institutions and agents increased by 133.8936859%

    Deposit and other accounts

    In 2010, the amount of Deposit and other accounts were 56105405810. In contrast 2011, it

    was reached at 75203463872.So, the amount of Deposit and other accounts were increased by

    34.03960418% in 2010.

    0

    5000

    10000

    15000

    20000

    25000

    2010 2011

    Borrowings from other banks,

    financial institutions (BDT Million)

    Borrowings from other

    banks, financial

    institutions (BDT Million)

    9257.4

    21652.48

    133.89%

    0

    10000

    20000

    30000

    40000

    50000

    60000

    70000

    80000

    2010 2011

    Deposit and other accounts (BDT

    Million)

    Deposit and other

    accounts (BDT Million)

    56105.41

    75203.46

    34.04%

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    Total Shareholders Equity

    In 2010,the amount ofTotal Shareholders Equity was 12257444389. On the other hand, it

    was 14592202592. We can say that the amount ofTotal Shareholders Equity

    19.047675534% in 2011.

    Total Liabilities

    In 2010, the amount of total liabilities was 70273534050 in 2010. In contrast 2011, it was

    102972118140.So, the amount of total liabilities 46.5304392922% in 2011.

    11000

    11500

    12000

    12500

    13000

    13500

    14000

    14500

    15000

    2010 2011

    Total Shareholders Equity (BDT Million)

    Total Shareholders Equity

    (BDT Million)

    12257.44

    14592.2

    19.05%

    0

    20000

    40000

    60000

    80000

    100000

    120000

    2010 2011

    Total Liabilities (BDT Million)

    Total Liabilities (BDT

    Million)

    70273.53

    102972.12

    46.53%

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