financial statements - idlc finance limited

Financial Statements

IDLC Finance Limited

as at and for the period ended March 31, 2021

3

Note 31.03.2021 31.12.2020

BDT BDT

PROPERTY AND ASSETS

Cash 3

In hand (including foreign currencies) 3.1 435,000 430,000

Balance with Bangladesh Bank and its agent (including foreign currencies) 3.2 1,703,235,387 1,520,439,941

1,703,670,387 1,520,869,941

Balance with other banks and financial institutions 4

Inside Bangladesh 4(a) 26,004,125,355 20,474,935,773

Outside Bangladesh 4(b) - -

26,004,125,355 20,474,935,773

Money at call and short notice 5 - -

Investments 6

Government 2,543,620,016 3,044,775,043

Others 5,436,500,052 5,613,758,625

7,980,120,068 8,658,533,668

Loans, advances and leases 7

Loans, cash credit, overdraft etc. 94,449,988,949 93,073,616,160

Bills purchased and discounted - -

94,449,988,949 93,073,616,160

Fixed assets including land, building, furniture and fixtures 8(c) 985,781,864 1,028,267,669

Other assets 9 2,009,149,480 2,117,376,104

Non-banking assets - -

Total Assets 133,132,836,103 126,873,599,315

LIABILITIES AND CAPITAL

Liabilities

Borrowings from other banks, financial institutions and agents 10 24,740,903,147 20,790,990,945

Deposits and other accounts 11

Current accounts and other accounts etc. - -

Bills payable - -

Savings bank deposits - -

Term deposits 76,692,710,500 76,273,087,133

Bearer certificate of deposits - -

Other deposits 2,615,921,408 2,490,915,674

79,308,631,908 78,764,002,807

Other liabilities 12 14,190,040,854 12,080,141,073

Total Liabilities 118,239,575,909 111,635,134,825

Capital/Shareholders' equity

Paid-up capital 13 3,770,507,800 3,770,507,800

Share premium 14 1,260,585,930 1,260,585,930

Statutory reserves 15 2,950,870,065 2,950,870,065

General reserves 16 1,000,000,000 1,000,000,000

Dividend equalisation reserves 46,500,000 46,500,000

Retained earnings 5,864,793,097 6,209,997,420

Total Equity attributable to equity holders of the company 14,893,256,892 15,238,461,215

Non-controlling interest 3,302 3,275

Total Liabilities and Shareholders' equity 133,132,836,103 126,873,599,315

IDLC Finance Limited and its Subsidiaries

Consolidated Balance Sheet (Un-Audited) as at March 31, 2021

4

Note 31.03.2021 31.12.2020

BDT BDT

- -

OFF-BALANCE SHEET ITEMS

Contingent liabilities 17.1

Acceptances and endorsements - -

Letters of guarantee 115,373,500 90,066,000

Irrevocable letters of credit - -

Bills for collection - -

Indemnity bond - -

Corporate guarantee 1,550,000,000 1,550,000,000

1,665,373,500 1,640,066,000

Other commitments 17.2

Documentary credits and short term trade related transactions - -

Forward assets purchased and forward deposits placed - -

Un-drawn note issuance and revolving underwriting facilities - -

Un-drawn formal standby facilities, credit lines - -

Un-disbursed contracted loans and leases 1,545,830,202 1,238,511,635

1,545,830,202 1,238,511,635

Total Off-Balance Sheet items including contingent liabilities 3,211,203,702 2,878,577,635

Net Assets Value (NAV) per share 35 39.50 40.41

The annexed notes from 1 to 37 form an integral part of these consolidated financial statements.

Dhaka, April 29, 2021

Chairman Director

Chief Financial Officer

CEO & Managing Director (C.C)

Company Secretary

Sd/- Sd/- Sd/-

Sd/-Sd/-

5

Note 31.03.2021 31.03.2020

BDT BDT

Interest income 19 2,737,876,312 3,286,233,781

Interest on deposits and borrowings etc. 20 (1,495,916,997) (2,148,874,733)

Net interest income 1,241,959,315 1,137,359,048

Investment income 21 571,534,536 (167,320,376)

Commission, exchange and brokerage 22 206,566,150 98,414,683

Other operating income 23 155,395,752 100,753,662

Total operating income 2,175,455,753 1,169,207,017

Salaries and allowances 24 426,506,176 355,400,362

Rent, taxes, insurance, electricity etc. 25 13,413,458 14,911,047

Legal expenses 26 10,294,480 2,709,121

Postage, stamp, telecommunication etc. 27 11,747,505 11,204,567

Stationery, printing, advertisements etc. 28 43,310,883 25,997,563

Managing Director's salary and benefits 29 3,520,000 3,520,000

Directors' fees 30 393,700 394,049

Auditors' fees 31 288,750 288,750

Charges on loan losses - -

Depreciation and repair of Company's assets 32 74,318,805 81,144,874

Other expenses 33 106,962,287 104,364,313

Total operating expenses 690,756,044 599,934,647

Profit before provision 1,484,699,709 569,272,370

Provision for loans and investments 12.6(ii)

General provision (23,760,954) 544,158

Specific provision 449,550,377 (35,288,860)

Provision for diminution in value of investments 140,833,929 27,677,605

Other provisions - -

Total provision 566,623,352 (7,067,097)

Total profit before taxation 918,076,357 576,339,467

Provision for taxation

Current tax expense 12.2 420,217,224 323,360,487

Deferred tax expense/(income) Annex B 26,701,870 (39,651,799)

446,919,094 283,708,688

Net profit after taxation 471,157,263 292,630,779

Attributable to:

Shareholders of the Company 471,157,236 292,630,805

Non-controlling interest 27 (25)

471,157,263 292,630,779

Retained surplus 471,157,236 292,630,805

Earnings Per Share (EPS) 34 1.25 0.78


____________

Chairman Director CEO & Managing Director (C.C.)

Chief Financial Officer Company Secretary


IDLC Finance Limited and its SubsidiariesConsolidated Profit and Loss Account (Un-Audited) for the period ended March 31, 2021

Sd/- Sd/- Sd/-

Sd/-Sd/-

6

31.03.2021 31.03.2020

BDT BDT

A) Cash flows from operating activities

Interest received 2,758,570,104 3,009,382,353

Interest paid (1,791,239,697) (2,093,203,732)

Dividend received 26,007,924 23,056,564

Fees and commission received 206,566,150 98,414,683

Paid to employees and suppliers (625,366,986) (526,078,170)

Payment of income tax (211,096,942) (176,110,057)

Received from other operating activities 699,383,413 (89,994,017)

1,062,823,967 245,467,625

Increase/(decrease) in operating assets and liabilities

Lease receivable 11,162,793 83,361,972

Long-term finance (1,087,782,397) 974,737,999

Real estate finance (137,248,551) (376,936,635)

Car loan (125,377,386) 15,553,078

Personal loan (6,945,030) 8,356,910

Loan against deposit 2,293,253 (614,794,002)

Margin loan to portfolio investors (65,698,231) 100,285,902

Short term finance 25,356,755 (204,008,603)

Other assets 95,398,837 (112,526,914)

Term and other deposits 544,629,101 (868,881,320)

Payable and accrued expenses 347,954,754 385,025,192

Deferred liability-employee gratuity 19,671,311 11,552,720

Portfolio investors' fund 221,585,013 177,481,554

Deferred tax liability (8,657,750) (14,719,056)

Interest suspense account 194,051,260 17,860,899

30,393,731 (417,650,304)

Net cash flows from/(used in) operating activities 1,093,217,698 (172,182,679)

B) Cash flows from investing activities

Purchase of fixed assets (11,398,688) (8,360,615)

Disposal of fixed assets 2,018,121 544,412

Net proceeds of investment in securities 678,413,600 (2,077,891,150)

Net cash flows from/(used in) investing activities 669,033,033 (2,085,707,353)

C) Cash flows from financing activities

Drawdown of term loans 7,521,952,219 832,080,502

Repayment of term loans (3,972,040,019) (744,833,078)

Net drawdown of short term loan 400,000,000 (650,000,000)

Dividend paid (172,903) (19,403)

Net cash flows from/(used in) financing activities 3,949,739,297 (562,771,979)

D) Net increase/(decrease) in cash and cash equivalents (A+ B + C) 5,711,990,028 (2,820,662,011)

E) Effects of exchange rate changes on cash and cash equivalents - -

F) Cash and cash equivalents at beginning of the year 21,995,805,714 15,099,981,046

G) Cash and cash equivalents at end of the period (D+E+F) 27,707,795,742 12,279,319,035

- -

Cash and cash equivalents at end of the period

Cash in hand (including foreign currencies) (Note-3.1) 435,000 487,879

Balance with Bangladesh Bank and its agent bank(s) (Note-3.2) 1,703,235,387 3,222,953,582

Balance with other banks and financial institutions (Note-4) 26,004,125,355 9,055,877,574

Money at call and short notice (Note-5) - -

27,707,795,742 12,279,319,035

Net operating cash flow per share (Note-36) 2.90 (0.46)


Cash generated from operating activities before changes in

operating assets and liabilities

IDLC Finance Limited and its SubsidiariesConsolidated Cash Flow Statement (Un-audited)

for the period ended March 31, 2021

7

Dividend

Share Statutory General equalisation Retained Non-controlling

Paid-up capital premium reserves reserves reserves earnings Total interest Total equity

BDT BDT BDT BDT BDT BDT BDT BDT BDT

Balance at January 1, 2021 3,770,507,800 1,260,585,930 2,950,870,065 1,000,000,000 46,500,000 6,209,997,420 15,238,461,215 3,275 15,238,464,490

Changes in accounting policy - - - - - - - - -

Restated balance 3,770,507,800 1,260,585,930 2,950,870,065 1,000,000,000 46,500,000 6,209,997,420 15,238,461,215 3,275 15,238,464,490

Surplus/(deficit) on account of revaluation of properties - - - - - - - - -

Surplus/(deficit) on account of revaluation of investments - - - - - - - - -

Currency translation differences - - - - - - - - -

Net gain and losses not recognised in the profit and loss accounts - - - - - - - - -

Net profit for the 1st quarter ended 2021 - - - - - 471,157,236 471,157,236 27 471,157,263

15% cash dividend (for 2020) (627,836,170) (627,836,170) - (627,836,170)

5% stock dividend (for 2020) - - - - - (188,525,390) (188,525,390) - (188,525,390)

Appropriation to reserves - - - - - - - - -

Balance at March 31, 2021 3,770,507,800 1,260,585,930 2,950,870,065 1,000,000,000 46,500,000 5,864,793,097 14,893,256,892 3,302 14,893,260,194

Balance at March 31, 2020 3,770,507,800 1,260,585,930 2,509,921,870 1,000,000,000 46,500,000 5,722,683,438 14,310,199,038 3,174 14,310,202,212



Consolidated Statement of Changes in Equity (Un-audited)


Attributable to equity holders of the Company

Particulars

8

Note 31.03.2021 31.12.2020

BDT BDT

PROPERTY AND ASSETS

Cash 3

In hand (including foreign currencies) 3.1 345,000 340,000

Balance with Bangladesh Bank and its agent (including foreign currencies) 3.2 1,703,235,387 1,520,439,941

1,703,580,387 1,520,779,941

Balance with other banks and financial institutions 4

Inside Bangladesh 4(a) 22,382,932,833 18,310,594,097

Outside Bangladesh 4(b) - -

22,382,932,833 18,310,594,097

Money at call and short notice 5 - -

Investments 6

Government 2,534,153,738 3,017,589,671

Others 2,166,381,797 2,219,571,466

4,700,535,535 5,237,161,137

Loans, advances and leases 7

Loans, cash credit, overdraft etc. 93,163,418,518 91,852,743,960

Bills purchased and discounted - -

93,163,418,518 91,852,743,960

Fixed assets including land, building, furniture and fixtures 8(c) 850,279,349 884,793,455

Other assets 9 5,535,802,696 5,612,814,286

Non-banking assets - -

Total Assets 128,336,549,318 123,418,886,876

LIABILITIES AND CAPITAL

Liabilities

Borrowings from other banks, financial institutions and agents 10 24,740,903,147 20,790,990,945

Deposits and other accounts 11

Current accounts and other accounts etc. - -

Bills payable - -

Savings bank deposits - -

Term deposits 77,646,295,500 78,131,272,875

Bearer certificate of deposits - -

Other deposits 2,615,921,408 2,490,915,674

80,262,216,908 80,622,188,549

Other liabilities 12 11,658,086,989 9,889,536,768

Total Liabilities 116,661,207,045 111,302,716,262

Capital/Shareholders' equity

Paid-up capital 13 3,770,507,800 3,770,507,800

Share premium 14 1,260,585,930 1,260,585,930

Statutory reserves 15 2,950,870,065 2,950,870,065

General reserves 16 1,000,000,000 1,000,000,000

Dividend equalisation reserves 46,500,000 46,500,000

Retained earnings 2,646,878,479 3,087,706,819

Total Equity 11,675,342,274 12,116,170,614

Total Liabilities and Shareholders' equity 128,336,549,318 123,418,886,876


Balance Sheet (Un-audited) as at March 31, 2021

9

Note 31.03.2021 31.12.2020

BDT BDT

OFF-BALANCE SHEET ITEMS - -

Contingent liabilities 17.1

Acceptances and endorsements - -

Letters of guarantee 115,373,500 90,066,000

Irrevocable letters of credit - -

Bills for collection - -

Indemnity bond - -

Corporate guarantee 1,550,000,000 1,550,000,000

1,665,373,500 1,640,066,000

Other commitments 17.2

Documentary credits and short term trade related transactions - -

Forward assets purchased and forward deposits placed - -

Un-drawn note issuance and revolving underwriting facilities - -

Un-drawn formal standby facilities, credit lines - -

Un-disbursed contracted loans and leases 1,545,830,202 1,238,511,635

1,545,830,202 1,238,511,635

Total Off-Balance Sheet items including contingent liabilities 3,211,203,702 2,878,577,635

Net Assets Value (NAV) per share 35 30.96 32.13


___________________


________________



Sd/- Sd/- Sd/-

Sd/-Sd/-

10

Note 31.03.2021 31.03.2020

BDT BDT

Interest income 19 2,659,784,112 3,246,697,173

Interest on deposits and borrowings etc. 20 (1,514,294,978) (2,175,942,922)

Net interest income 1,145,489,134 1,070,754,251

Investment income 21 339,092,667 (64,223,067)

Commission, exchange and brokerage 22 - -

Other operating income 23 148,298,505 99,816,827

Total operating income 1,632,880,306 1,106,348,011

Salaries and allowances 24 341,610,535 292,745,261

Rent, taxes, insurance, electricity etc. 25 10,778,992 12,199,674

Legal expenses 26 9,455,632 1,783,975

Postage, stamp, telecommunication etc. 27 10,024,329 9,285,550

Stationery, printing, advertisements etc. 28 40,023,572 23,820,581

Managing Director's salary and benefits 29 3,520,000 3,520,000

Directors' fees 30 299,200 237,600

Auditors' fees 31 201,250 201,250

Charges on loan losses - -

Depreciation and repair of Company's assets 32 61,574,393 67,230,315

Other expenses 33 84,138,509 86,606,958

Total operating expenses 561,626,412 497,631,165

Profit before provisions 1,071,253,894 608,716,846

Provision for loans and investments 12.6(ii)

General provision (24,417,936) (125,855)

Specific provision 447,605,377 (35,288,860)

Provision for diminution in value of investments - (42,531,423)

Other provision - -

Total provision 423,187,441 (77,946,138)

Total profit before taxation 648,066,453 686,662,984

Provision for taxation

Current tax expense 12.2 320,787,328 273,367,421

Deferred tax expense/ (income) Annex B 14,005,905 (21,741,015)

334,793,233 251,626,406

Net profit after taxation 313,273,220 435,036,578

Retained surplus 313,273,220 435,036,578

Earnings Per Share (EPS) 34 0.83 1.15


____________________


________________ ________________



IDLC Finance Limited Profit and Loss Account (Un-audited) for the period ended March 31, 2021

Sd/- Sd/- Sd/-

Sd/-Sd/-

11

31.03.2021 31.03.2020

BDT BDT

A) Cash flows from operating activities

Interest received 2,697,289,909 3,075,972,705

Interest paid (1,809,617,678) (2,120,271,921)

Dividend received 3,607,474 2,729,948

Fees and commission received - -

Paid to employees and suppliers (507,692,119) (436,353,316)

Payment of income tax (152,737,791) (156,848,078)

Received from other operating activities 488,896,919 (21,441,338)

719,746,714 343,788,000


Lease receivable 11,162,793 83,361,972

Long-term finance (1,087,782,397) 974,737,999

Real estate finance (137,248,551) (376,936,635)

Car loan (125,377,386) 15,553,078

Personal loan (6,945,030) 8,356,910

Loan against deposit 2,293,253 (614,794,002)

Loan to subsidiaries - -

Short term finance 25,356,755 (204,008,603)

Other assets 40,744,216 (86,820,018)

Term and other deposits (359,971,641) (1,319,471,411)

Payable and accrued expenses 490,157,915 240,128,375

Inter-company payables - -

Deferred liability-employee gratuity 17,739,000 9,561,880

Portfolio investors' fund - -

Deferred tax liability (7,032,999) (11,946,030)

Interest suspense account 194,051,260 17,860,899

(942,852,812) (1,264,415,586)

Net cash flows from/(used in) operating activities (223,106,098) (920,627,587)

B) Cash flows from investing activities

Purchase of fixed assets (9,952,564) (7,910,715)

Disposal of fixed assets 1,832,945 544,412

Net proceeds of investment in securities 536,625,602 (1,139,673,031)

Net cash flows from/(used in) investing activities 528,505,983 (1,147,039,334)

C) Cash flows from financing activities

Drawdown of term loans 7,521,952,219 832,080,502

Repayment of term loans (3,972,040,019) (744,833,078)

Proceeds from right issue - -

Net drawdown of short term loan 400,000,000 (600,000,000)

Dividend paid (172,903) (19,403)

Net cash flows from/(used in) financing activities 3,949,739,297 (512,771,979)

D) Net increase/(decrease) in cash and cash equivalents (A+B+C) 4,255,139,182 (2,580,438,900)

E) Effects of exchange rate changes on cash and cash equivalents - -

F) Cash and cash equivalents at beginning of the year 19,831,374,038 14,320,842,711

G) Cash and cash equivalents at end of the period (D+E+F) 24,086,513,220 11,740,403,811

- -

Cash and cash equivalents at end of the period

Cash in hand (including foreign currencies) (Note-3.1) 345,000 340,000

Balance with Bangladesh Bank and its agent bank(s) (Note-3.2) 1,703,235,387 3,222,953,582

Balance with other banks and financial institutions (Note-4 ) 22,382,932,833 8,517,110,229

Money at call and short notice (Note-5) - -

24,086,513,220 11,740,403,811

Net operating cash flow per share (Note-36) (0.59) (2.44)


Cash generated from operating activities before changes in

operating assets and liabilities

IDLC Finance LimitedCash Flow Statement (Un-audited) for the period ended March 31, 2021

12

Dividend

Share Statutory General equalisation Retained

Paid-up capital premium reserves reserves reserves earnings Total

BDT BDT BDT BDT BDT BDT BDT

Balance at January 1, 2021 3,770,507,800 1,260,585,930 2,950,870,065 1,000,000,000 46,500,000 3,087,706,819 12,116,170,614

Changes in accounting policy - - - - - - -

Restated balance 3,770,507,800 1,260,585,930 2,950,870,065 1,000,000,000 46,500,000 3,087,706,819 12,116,170,614

Surplus/(deficit) on account of revaluation of properties - - - - - - -

Surplus/(deficit) on account of revaluation of investments - - - - - - -

Currency translation differences - - - - - - -

Net gain and losses not recognised in the profit and loss accounts - - - - - - -

Net profit for the 1st quarter ended 2021 - - - - - 313,273,220 313,273,220

15% cash dividend (for 2020) - - - - - (565,576,170) (565,576,170)

5% stock dividend (for 2020) (188,525,390) (188,525,390)

Appropriation to reserve - - - - - - -

Balance at March 31, 2021 3,770,507,800 1,260,585,930 2,950,870,065 1,000,000,000 46,500,000 2,646,878,479 11,675,342,274

Balance at March 31, 2020 3,770,507,800 1,260,585,930 2,509,921,870 1,000,000,000 46,500,000 3,078,628,345 11,666,143,945



Statement of Changes in Equity (Un-audited)


Particulars

13

1. Company and its activities

1.1 Legal status and nature of the Company

1.2 Principal activities and nature of operation

1.3 Subsidiary companies

1.3.1 IDLC Securities Limited (IDLC SL)

1.3.2 IDLC Investments Limited (IDLC IL)

1.3.3 IDLC Asset Management Limited (IDLC AML)


Notes to the consolidated and separate financial statements (Un-audited)

As at and for the year ended March 31, 2021

IDLC Finance Limited (The Company "IDLC") was incorporated in Bangladesh as a public limited company on

May 23, 1985 under the Companies Act, 1913 in its earlier name of Industrial Development Leasing Company

of Bangladesh Limited. The Company changed its name in August 2007. The registered office of the company

is situated at Bay’s Galleria (1st

Floor), 57 Gulshan Avenue, Gulshan 1, Dhaka. The Company is registered as a

Financial Institution under the Financial Institutions Act, 1993, governed by Bangladesh Bank (the Central Bank

of Bangladesh)

The Company went for public issue of its shares in 1993. Its shares are listed in both the Stock Exchanges in

Bangladesh.

When incorporated, the Company started with lease and term financing, as its core businesses. It expanded its

activities into 'Short-Term Finance' (factoring of accounts receivable and work order financing) and 'Real Estate

Finance' operations in 1997. It also started car loan and personal loan services to individuals in 2004 and 2007,

respectively. Now, the company has evolved itself as multiproduct financial institution.

As required by the Bangladesh Securities & Exchange Commission (BSEC), the Company formed a separate

subsidiary (99.99%) on May 19, 2010 in the name and style of “IDLC Investments Limited” to transfer its

merchant banking activities. As per Securities and Exchange Commission (Merchant Banker and Portfolio

Manager) Rules, 1996, the services of issue management, portfolio management, underwriting of shares and

securities advisory services fall under the purview of merchant banking operation. The Company obtained

license from the Bangladesh Securities and Exchange Commission (BSEC) on August 02, 2011 and

commenced its business on August 16, 2011.

IDLC Securities Limited, a wholly owned subsidiary company (99.99%) of IDLC Finance Limited, was

incorporated on April 19, 2006 as a private limited company under Companies Act, 1994. The Company had

started its operation from September 2006. The main objective of the Company is to act as a member of stock

exchanges to operate the Central Depository System (CDS) and to carry on the business of brokers, jobbers or

dealers in stocks, shares, securities, commodities, commercial papers, bonds, obligations and debentures etc.

IDLC Asset Management Limited (IDLC AML), another wholly owned subsidiary company (99.99%) of IDLC

Finance Limited, was incorporated on November 19, 2015 as a private limited company under Companies Act,

1994.

The main objective of the Company is to carry out the business of asset management, primarily, through

launching and managing mutual funds to cater diverse needs of investors. Beside institutional fund management

IDLC AML also facilitates alternative investments in terms of private equity and venture capital.

14

2. Basis of preparation and significant accounting policies

2.1

2.2 Basis of measurement

2.3

2.4

2.5

This financial statements have been prepared based on International Accounting Standards (IASs) and

International Financial Reporting Standards (IFRSs) and no adjustment has been made for inflationary factors

affecting the financial statements. The accounting policies, unless otherwise stated, have been consistently

applied by the Company and are consistent with those of the previous year.

Statement of compliance

The requirements of accounting standards as per IFRS that have been departed to comply with Bangladesh Bank

requirements have been disclosed in detail in note-2.3 & Annexure-C.

However, this departure with IFRS has been made by following all of the relevant provisions of IAS-1 and the

details disclosures are given in note-2.3 & Annexure-C by following the provision of Para 20 of IAS-1

(Presentation of Financial Statements).

The consolidated financial statements and separate financial statements of the Company have been prepared on

a going concern basis following accrual basis of accounting except for cash flow statement which is stated at

market value in accordance with International Accounting Standards (IAS) and International Financial

Reporting Standards (IFRS) as adopted in Bangladesh by the Institute of Chartered Accountants of Bangladesh,

except the circumstances where local regulations differ, and the Companies Act, 1994, the Financial Institutions

Act, 1993, Securities and Exchange Rules, 1987 & the (Listing) Regulations, 2015 of Dhaka & Chittagong

Stock Exchanges and other applicable laws and regulations.

The presentation of the financial statements has been made as per the requirements of DFIM Circular No: 11,

dated December 23, 2009 issued by the Department of Financial Institutions and Markets (DFIM) of

Bangladesh Bank. The activities and accounting heads mentioned in the prescribed form, which are not

applicable for the financial institutions, have been kept blank in the financial statements.

Disclosure of deviations from few requirements of IAS/IFRS due to mandatory compliance with

Bangladesh Bank’s requirements

Bangladesh Bank (the local Central Bank) is the prime regulatory body for Financial Institutions in Bangladesh.

Some requirements of Bangladesh Bank’s rules and regulations contradict with those of financial instruments

and general provision standards of IAS and IFRS. As such the company has departed from those contradictory

requirements of IAS/IFRS in order to comply with the rules and regulations of Bangladesh Bank, which are

disclosed in Annexure-C along with financial impact where applicable.

Date of authorisation

The Board of directors has authorised this financial statements for public issue on April 29, 2021.

Reporting

This first quarterly financial report has been prepared based on International Accounting Standard (IAS) - 34:

"Interim Financial Reporting". These interim financial statements should be read in conjunction with the

published financial statement for the year ended December 31, 2020, as they provide an update to previously

reported information.

15

2.6

2.7

2.8

Accounting policies and method of computations

Reclassifications

To facilitate comparison, certain relevant balances pertaining to the previous period have been

rearranged/restated/reclassified, whenever considered necessary, to conform to current period's presentation.

Accounting policies and methods of computations followed in preparing this financial statement are consistent

with those used in the annual financial statements, prepared and published for the year ended December 31,

2020.

Consolidation of operations of subsidiaries

The consolidation of the financial statements have been made after eliminating all material intra group

transactions. The total profits of the Company and its subsidiaries are shown in the consolidated profit and loss

account, with the proportion of profit after taxation pertaining to minority shareholders being deducted as 'non-

controlling interest'.

16

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BDT BDT BDT BDT

3 Cash

3.1 Cash in hand (including foreign currencies)

In local currency 345,000 340,000 435,000 430,000

In foreign currency - - - -

345,000 340,000 435,000 430,000

3.2 Balance with Bangladesh Bank and its agent (including foreign currencies)

In local currency 1,703,235,387 1,520,439,941 1,703,235,387 1,520,439,941

In foreign currency - - - -

1,703,235,387 1,520,439,941 1,703,235,387 1,520,439,941

1,703,580,387 1,520,779,941 1,703,670,387 1,520,869,941

4 Balance with other banks and financial institutions in Bangladesh

4(a) Inside Bangladesh:

Current deposits in local currency

Woori Bank limited 167,965 96,449 167,965 96,449

Bank Al- Falah Limited 38,038 16,300 38,038 16,300

One Bank Limited - - 36,935,053 16,793,693

Jamuna Bank Limited 5,630 5,630 42,763 42,763

The City Bank Limited 5,061,810 41,064,888 5,061,810 41,064,888

National Bank Limited 600,154 1,711,786 600,154 1,711,786

Islami Bank Bangladesh Limited 14,881,860 3,381,921 14,881,860 3,381,921

Bank Asia Limited 5,138,308 1,174,418 5,138,308 1,174,418

State Bank of India 43,894 43,894 43,894 43,894

Commercial Bank of Ceylon PLC 1,871,039 2,555,130 2,792,298 2,754,309

NCC Bank Limited 7,180,043 8,880,270 407,346,749 13,563,762

Citibank N.A 26,680,010 17,471,213 26,680,010 17,471,213

Standard Chartered Bank (114,899,224) (1,504,507,466) 61,775,882 (1,338,828,583)

Mutual Trust Bank Limited 2,012,534 25,737,247 2,012,534 25,737,247

Exim Bank Limited 139,859,396 2,373,404 139,859,396 2,373,404

Dutch Bangla Bank Limited 69,652,144 108,197,874 69,652,144 108,197,874

BRAC Bank Limited 7,982,894 6,484,920 9,128,354 7,914,977

Dhaka Bank Limited 986,645,802 5,445,283 989,543,722 5,445,283

United Commercial Bank Limited 48,115,909 30,293,368 48,115,909 30,293,368

NRB Bank Limited - - 196,190 196,437

Mercantile Bank Limited 2,943,332 4,015,891 2,943,332 4,015,891

bKash Limited 564,312 1,344,462 564,312 1,344,462

IDLC Investments Limited 401,847 253,309 - -

1,204,947,697 (1,243,959,809) 1,823,520,677 (1,055,194,244)

Short-term deposit accounts

Prime Bank Limited 8,379,911 586,664,610 8,379,911 586,664,610

Dutch Bangla Bank Limited - - 10,567,947 3,220,039

The City Bank Limited 8,464,824 884,448,463 8,464,824 884,448,463

BRAC Bank Limited - - 7,781,096 15,522,418

Southeast Bank Limited 5,199,310 4,905,430 5,199,310 4,905,430

Citibank N.A. 372,342 24,109,566 372,342 24,109,566

Standard Chartered Bank 12,092 917,362,042 5,528,376 918,065,945

Commercial Bank of Ceylon PLC 3,663,742 1,294,782 11,047,771 2,504,926

One Bank Limited 1,717,593,441 1,545,666,505 1,761,892,429 1,563,602,432

NCC Bank Limited - - 898,787,521 151,485,153

Exim Bank Limited 6,695,003,009 4,724,066,025 7,149,677,688 5,888,993,301

NRB Bank Limited 22 22 270 23

Dhaka Bank Limited 2,709,296,443 2,066,036,461 2,709,296,443 2,066,036,461

11,147,985,136 10,754,553,906 12,576,995,928 12,109,558,767

Fixed Deposits

BRAC Bank Limited 1,000,000,000 1,500,000,000 1,000,000,000 1,500,000,000

Meghna Bank Limited 750,000,000 750,000,000 750,000,000 750,000,000

NRB Commercial Bank Limited - 70,000,000 - 70,000,000

South Bangla Agriculture & Commerce Bank Limited 80,000,000 180,000,000 80,000,000 180,000,000

ONE Bank Limited 1,500,000,000 1,000,000,000 1,500,000,000 1,000,000,000

Jamuna Bank Limited 100,000,000 100,000,000 100,000,000 100,000,000

Dhaka Bank Limited 2,500,000,000 2,500,000,000 2,500,000,000 2,500,000,000

Standard Bank Limited 1,200,000,000 1,200,000,000 1,200,000,000 1,200,000,000

Export Import Bank of Bangladesh Limited 1,700,000,000 1,500,000,000 3,256,108,750 2,103,071,250

IPDC Finance Limited 500,000,000 - 500,000,000 -

Trust Bank Limited - - 2,500,000 2,500,000

Standard Chartered Bank - - 15,000,000 15,000,000

Uttara Bank Limited 700,000,000 700,000,000 -

10,030,000,000 8,800,000,000 11,603,608,750 9,420,571,250

22,382,932,833 18,310,594,097 26,004,125,355 20,474,935,773

4(b) Outside Bangladesh - - - -

Total balance 22,382,932,833 18,310,594,097 26,004,125,355 20,474,935,773

IDLC Finance Limited IDLC Group

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BDT BDT BDT BDT

5 Money at call and short notice - - - -

- - - -

6 Investments

Government securities

Treasury bill - - - -

National Investment bonds - - - -

Bangladesh Bank bill - - - -

Government notes/bonds 2,534,153,738 3,017,589,671 2,543,620,016 3,044,775,043

Prize bonds - - - -

Others - - - -

2,534,153,738 3,017,589,671 2,543,620,016 3,044,775,043

Other investments

Investment in non marketable ordinary shares (Note 6.1) 30,364,000 24,733,600 210,763,952 195,073,552

Investment in preference shares (Note 6.2) 111,958,000 111,958,000 111,958,000 111,958,000

Investment in debenture and bonds (Note 6.3) 180,000,000 180,000,000 303,332,427 429,761,646

Investment in venture capital (Note 6.4) 50,000,000 50,000,000 59,000,000 59,000,000

Investment in marketable securities (Note 6.5) 1,580,729,665 1,639,549,734 4,528,115,541 4,594,635,295

Investment in open end mutual fund (Note 6.6) 213,330,132 213,330,132 223,330,132 223,330,132

Other investments - - - -

Gold etc. - - - -

2,166,381,797 2,219,571,466 5,436,500,052 5,613,758,625

4,700,535,535 5,237,161,137 7,980,120,068 8,658,533,668

6.1 Investment in non marketable ordinary shares

No. of Shares

Credit Rating Agency of Bangladesh Limited 17,198 1,719,800 1,719,800 1,719,800 1,719,800

* The Bangladesh Rating Agency Limited (BDRAL) 61,442 6,144,200 6,144,200 6,144,200 6,144,200

Baraka Patenga Power Limited 22,500,000 - 42,900,000 -

Jayson Pharmaceuticals Limited - - - 159,999,952 159,999,952

Energypac Power Generation Limited - - 16,869,600 - 27,209,600

* Previously the name was Dan & Bradstreet Rating Agency Bangladesh Limited 30,364,000 24,733,600 210,763,952 195,073,552

6.2 Investment in preference shares

111,958,000 111,958,000 111,958,000 111,958,000

111,958,000 111,958,000 111,958,000 111,958,000

6.3 Investment in bonds

Mercantile Bank Limited 60,000,000 60,000,000 60,000,000 60,000,000


Paramount Textile Limited - - 69,464,568 80,027,899

Tarasima Apparels Limited - - 53,867,859 64,733,747

Impress-Newtex Composite Textile Limited - - - 105,000,000

Total 180,000,000 180,000,000 303,332,427 429,761,646

6.4 Investment in venture capital

IDLC Venture Capital Fund I 50,000,000 50,000,000 59,000,000 59,000,000

Total 50,000,000 50,000,000 59,000,000 59,000,000

6.5 Investment in marketable securities

Investment in marketable securities (Note 6.5.1) 1,580,729,665 1,639,549,734 4,522,292,832 4,569,065,679

Investment in DPM PLS Scheme - - 5,822,709 25,569,616

1,580,729,665 1,639,549,734 4,528,115,541 4,594,635,295

IDLC Finance Limited (IDLC FL) invested BDT 50.00 million in IDLC Venture Capital Fund I, an alternative investment fund. The objective of the fund is to provide superior risk

adjusted returns over a medium to long term by investing in high growth companies, with good management and corporate governance through Equity and Equity Linked

Instruments. IDLC Asset Management Limited (IDLC AML) also invested BDT 9.00 million in this fund.


Chaldal Limited

18

6.5.1 Investment in marketable securities

Details of marketable securities are given below:

Market price at the Market price at the

Business Segments Cost price end of the period Cost price end of the period

BDT BDT BDT BDT

Mutual Funds 195,847,280 207,504,928 243,942,031 253,481,900

Banks 144,330,295 128,846,400 694,966,492 548,321,280

Textiles - - - 0

Pharmaceuticals & Chemicals 615,281,485 793,532,339 1,474,366,506 1,619,455,720

Fuel & Power - - 169,288,884 147,149,813

Financial Institutions 9,999,990 9,999,990 59,961,880 45,128,669

Telecom 328,167,554 325,050,750 678,603,255 638,326,335

Food & Allied 227,191,643 238,050,000 461,095,605 477,911,913

Cement 37,781,830 30,442,000 262,339,793 213,219,424

Engineering & Others 22,129,588 22,456,150 477,728,386 461,021,453

1,580,729,665 1,755,882,557 4,522,292,832 4,404,016,507

31.03.2021 31.12.2020 31.03.2021 31.12.2020

BDT BDT BDT BDT

6.5.2 Investment in Initial Public Offering - - - -

6.6 Investment in open end mutual fund

IDLC Balanced Fund 107,725,140 107,725,140 107,725,140 107,725,140

IDLC Growth Fund 105,604,992 105,604,992 105,604,992 105,604,992

IDLC Asset Management Shariah Fund - - 10,000,000 10,000,000 213,330,132 213,330,132 223,330,132 223,330,132

7 Loans, advances and leases

Inside Bangladesh:

Lease receivable (Note 7.1) 3,026,275,799 3,037,438,592 3,026,275,799 3,037,438,592

Long-term finance (Note 7.2) 57,771,960,734 56,684,178,337 57,771,960,734 56,684,178,337

Real estate finance (Note 7.3) 26,971,607,566 26,834,359,015 26,971,607,566 26,834,359,015

Car loans (Note 7.4) 1,275,800,822 1,150,423,436 1,275,800,822 1,150,423,436

Personal loan (Note 7.5) 121,171,363 114,226,333 121,171,363 114,226,333

Short term finance (Note 7.6) 865,634,938 890,991,693 865,634,938 890,991,693

Loan to subsidiaries (Note 7.7) - - - -

Loan against deposit (LAD) 436,909,244 439,202,497 436,909,244 439,202,497

Margin loan to portfolio investors (Note 7.8) - - 1,286,570,431 1,220,872,200

Interest receivable (Note-7.9) 2,694,058,053 2,701,924,058 2,694,058,053 2,701,924,058

93,163,418,518 91,852,743,960 94,449,988,949 93,073,616,160

Outside Bangladesh - - - -

93,163,418,518 91,852,743,960 94,449,988,949 93,073,616,160

7.1 Lease receivable

Balance at January 1 3,037,438,592 3,496,386,070 3,037,438,592 3,496,386,070

Add: Addition during the period/year 261,329,000 704,709,483 261,329,000 704,709,483

3,298,767,592 4,201,095,553 3,298,767,592 4,201,095,553

Less: Realisation during the period/year 272,491,793 1,163,656,961 272,491,793 1,163,656,961

3,026,275,799 3,037,438,592 3,026,275,799 3,037,438,592

Add: Net receivable/(payable) on terminated leases - - - -

Balance at period/year end 3,026,275,799 3,037,438,592 3,026,275,799 3,037,438,592

All investments in marketable securities are valued on an aggregate portfolio basis, at cost value, at the balance sheet date. Market price for securities not listed as on reporting date,

has been shown at cost for calculation purpose. As on March 31, 2021 there was BDT 118.28 million unrealised loss on consolidated investment in marketable securities and

BDT 175.13 million unrealised gain on investment by IDLC Finance Limited in marketable securities.


IDLC Finance Limited (IDLC FL) invested BDT 213.33 million as the sponsor in open-ended mutual fund (IDLC Balanced Fund & IDLC Growth Fund). IDLC Asset Management

Limited (IDLC AML) is the fund manger of this mutual fund. The objective of the fund is to provide attractive risk adjusted returns to the unit holders by investing the proceeds in

the Capital Market and Money Market. IDLC Asset Management Limited (IDLC AML) has, as of 31 March 2021, investment of BDT 10.00 million as the sponsor in IDLC Asset

Management Shariah Fund, an open-ended mutual fund. The objective of the fund is to generate profit by investing in a portfolio of Shariah compliant securities, vetted by the

Shariah Advisory Board. The fund intends to deliver the profit among the investors in the form of dividend as well as capital appreciation.


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BDT BDT BDT BDT

7.2 Long-term finance


Add: Disbursement during the period/year 11,023,339,400 29,090,638,901 11,023,339,400 29,090,638,901

67,707,517,737 84,643,433,011 67,707,517,737 84,643,433,011

Less: Realisation during the period/year 9,935,557,003 27,959,254,675 9,935,557,003 27,959,254,675


7.3 Real estate finance


Add : Disbursement during the period/year 2,177,302,818 3,793,184,855 2,177,302,818 3,793,184,855

29,011,661,833 31,955,827,924 29,011,661,833 31,955,827,924

Less : Realisation during the period/year 2,040,054,267 5,121,468,909 2,040,054,267 5,121,468,909


7.4 Car loans


Add : Disbursement during the period/year 264,276,000 434,234,609 264,276,000 434,234,609

1,414,699,436 1,684,949,113 1,414,699,436 1,684,949,113

Less : Realisation during the period/year 138,898,614 534,525,677 138,898,614 534,525,677


7.5 Personal loan

Balance at January 1 114,226,333 144,951,757 114,226,333 144,951,757

Add : Disbursement during the period/year 20,343,392 36,180,669 20,343,392 36,180,669

134,569,725 181,132,426 134,569,725 181,132,426

Less : Realisation during the period/year 13,398,362 66,906,093 13,398,362 66,906,093

Balance at period/year end 121,171,363 114,226,333 121,171,363 114,226,333

7.6 Short term finance

Factoring of account receivable 865,634,938 890,991,693 865,634,938 890,991,693

7.7 Loan to Subsidiaries

Balance at January 1 - - - -

Add : Disbursement during the period/year - 658,100,000 - -

- 658,100,000 - -

Less : Realisation during the period/year - 658,100,000 - -

Balance at period/year end - - - -

7.7.1 Loan to IDLC Investments Limited



- 413,100,000 - -



7.7.2 Loan to IDLC Securities Limited



- 245,000,000 - -




This represents loans to individuals, employees under the Company's real estate loan scheme and corporate bodies for purchase and construction of apartments and homes in urban

areas for periods ranging from 5 to 20 years.

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BDT BDT BDT BDT

7.8 Margin loan to portfolio investors

Balance at January 1 - - 1,220,872,200 897,529,429

Add : Disbursement during the period/year - - 754,822,012 1,916,019,194

- - 1,975,694,212 2,813,548,623

Less : Realisation during the period/year - - 689,123,781 1,592,676,423

Balance at period/year end - - 1,286,570,431 1,220,872,200

7.9 Interest Receivables

Lease receivable 95,699,947 98,955,445 95,699,947 98,955,445

Long-term finance 2,018,348,810 2,043,830,208 2,018,348,810 2,043,830,208

Real estate finance 540,955,849 512,637,451 540,955,849 512,637,451

Car loan 13,850,462 12,606,092 13,850,462 12,606,092

Personal loan 1,540,128 1,661,855 1,540,128 1,661,855

Loan against deposit (LAD) 22,360,625 23,896,801 22,360,625 23,896,801

Short term finance 1,302,232 8,336,206 1,302,232 8,336,206

2,694,058,053 2,701,924,058 2,694,058,053 2,701,924,058


Margin loan to portfolio investors are provided by the subsidiaries of the Company as part of their normal business activities and the Group considers this as having similar

characteristics of retail/personal lending. Based on detailed review, the Group noted that shortfall, if any on individual client's portfolio and margin lending exposure are temporary

in nature and any potential shortfall is expected to be recouped in near future. Moreover, the Group is also continuing its recovery efforts by requesting those clients to bring in

additional fund to cover shortfall. Nevertheless, the Group is closely monitoring this matter and if it becomes obvious that additional provision will be required, then it shall be

provided for in due course.

21

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BDT BDT BDT BDT

8 Fixed assets including land, building, furniture and fixtures

a. Cost

Balance at 01 January 1,978,122,552 1,924,185,117 2,334,534,203 2,296,151,837

Addition during the period/year end 19,738,764 196,490,832 23,382,415 203,180,479

1,997,861,316 2,120,675,949 2,357,916,618 2,499,332,316

Disposal/Adjustments during the year (25,787,329) (142,553,397) (26,287,809) (164,798,113)


b. Accumulated depreciation

Balance at 01 January 1,093,329,097 997,902,078 1,306,266,535 1,176,175,444

Charged during the period/year end 53,934,293 236,765,041 65,389,058 285,866,458

1,147,263,390 1,234,667,118 1,371,655,593 1,462,041,902

Disposal/Adjustments during the period/year end (25,468,752) (141,338,021) (25,808,648) (155,775,367)


c. Written down value (a-b) 850,279,349 884,793,455 985,781,864 1,028,267,669

A schedule of fixed assets including land, building, furniture and fixtures is given in Annexure-A

9 Other assets

Investment in subsidiary companies (Note - 9.1) 4,099,999,790 4,099,999,790 - -

Accounts receivable (Note - 9.2) 313,752,442 341,145,977 774,983,656 819,283,848

Advances, deposits and prepayments (Note - 9.3) 880,498,060 909,077,211 884,973,395 913,540,206

Deferred tax asset (Annexure B) 241,552,404 262,591,309 334,322,679 369,682,300

Investment in stock exchanges (Note - 9.4) - - 14,869,750 14,869,750

5,535,802,696 5,612,814,286 2,009,149,480 2,117,376,104

9.1 Investment in subsidiary companies

IDLC Securities Limited (Note- 9.1.1) 1,649,999,900 1,649,999,900 - -

IDLC Investments Limited (Note- 9.1.2) 2,199,999,900 2,199,999,900 - -

IDLC Asset Management Limited (Note- 9.1.3) 249,999,990 249,999,990 -

4,099,999,790 4,099,999,790 - -

9.1.1

9.1.2

9.1.3

9.2 Accounts receivable

Interest receivable (Note - 9.2.1) 112,480,697 148,748,071 138,045,179 150,872,966

Other receivables (Note - 9.2.2) 201,271,745 192,397,906 636,938,477 668,410,883

313,752,442 341,145,977 774,983,656 819,283,848

9.2.1 Interest receivable

Interest receivable, Fixed deposit 64,307,569 93,947,361 89,872,051 96,057,413

Receivable from Investment in government bonds 44,266,461 49,694,043 44,266,461 49,708,886

Receivable from Investment in bonds 3,906,667 5,106,667 3,906,667 5,106,667

112,480,697 148,748,071 138,045,179 150,872,966

9.2.2 Other receivables

Accrued other income 46,564,931 42,411,625 46,564,931 42,411,625

Other receivable 154,706,814 149,986,281 590,373,546 625,999,258

201,271,745 192,397,906 636,938,477 668,410,883

9.3 Advances, deposits and prepayments

Deposits and prepayments 202,197,935 234,026,556 204,150,698 235,460,819

Advance against expenses 678,300,125 675,050,655 680,822,697 678,079,387

880,498,060 909,077,211 884,973,395 913,540,206

Advances, deposits and prepayments are considered good but not secured by collateral.


Out of the total of 20,000,000 ordinary shares issued and paid up, IDLC Finance Limited holds 19,999,992 (including bonus shares issued in 2008, 2009 and 2010) ordinary

shares of BDT 100 each.

Out of the total of 15,000,000 ordinary shares issued and paid up, IDLC Finance Limited holds 14,999,999 ordinary shares of BDT 10 each. BDT 100,000,000 has been

provided to IDLC Asset Management Limited as Share Money Deposit in 2020, for additional share holding in the company, awaiting approval from Registrar of Joint Stock

Companies.

Out of the total of 22,000,000 ordinary shares issued and paid up, IDLC Finance Limited holds 21,999,999 ordinary shares of BDT 100 each.

22

31.03.2021 31.12.2020 31.03.2021 31.12.2020

BDT BDT BDT BDT

9.4 Investment in stock exchanges

DSE membership at cost - - 11,418,750 11,418,750

CSE membership at cost - - 3,451,000 3,451,000

- - 14,869,750 14,869,750

IDLC Securities Limited has received the following shares from DSE and CSE against the membership under demutualization scheme of the stock exchanges.

Stock Exchange Type of Shares Number of Shares Face Value

Floated (53.33%) 2,886,042 10

Blocked (46.67%) 2,525,287 10

5,411,329

Floated (40%) 1,714,932 10

Blocked (60%) 2,572,398 10

4,287,330

Valuation of membership has been shown at cost in the accounts.

10 Borrowings from other banks, financial institutions

Inside Bangladesh (Note- 10.1) 24,740,903,147 20,790,990,945 24,740,903,147 20,790,990,945

Outside Bangladesh - - - -

24,740,903,147 20,790,990,945 24,740,903,147 20,790,990,945

10.1 Inside Bangladesh

Secured Loans

Secured Long-term loans

Woori Bank 487,500,000 570,833,333 487,500,000 570,833,333

487,500,000 570,833,333 487,500,000 570,833,333

Secured Short Term Loan

Citi Bank N.A. 560,000,000 560,000,000 560,000,000 560,000,000

Bank Alfalah Limited - 200,000,000 - 200,000,000

Standard Chartered Bank 2,000,000,000 2,000,000,000 2,000,000,000 2,000,000,000

Commercial Bank of Ceylon Plc 1,000,000,000 1,000,000,000 1,000,000,000 1,000,000,000

Total secured short term loan 3,560,000,000 3,760,000,000 3,560,000,000 3,760,000,000

Total secured loans 4,047,500,000 4,330,833,333 4,047,500,000 4,330,833,333

Unsecured loans

Zero Coupon Bond

Institutions 4,067,950,609 1,611,159,790 4,067,950,609 1,611,159,790

Individuals 114,069,998 643,928 114,069,998 643,928

4,182,020,607 1,611,803,718 4,182,020,607 1,611,803,718

Unsecured Long-term loans

Kreditanstalt fÜr Wiederaufbau (KfW) 38,358,536 49,885,422 38,358,536 49,885,422

Bangladesh Bank ( JICA-FDI Fund) 220,944,444 220,944,444 220,944,444 220,944,444

Bangladesh Bank (BB Fund-Small Enterprise Refinancing Program) 3,479,167 4,325,000 3,479,167 4,325,000

Bangladesh Bank (Women-Small Enterprise Refinancing Program) 2,653,316,068 2,312,384,192 2,653,316,068 2,312,384,192

Bangladesh Bank (New Entrepreneur Refinancing Scheme) 5,650,379 3,053,157 5,650,379 3,053,157

Bangladesh Bank (Home Loan Refinancing Program) 390,443,592 399,796,095 390,443,592 399,796,095

Bangladesh Bank (Agro Loan Refinancing Program) 639,983,690 610,626,905 639,983,690 610,626,905

Bangladesh Bank (JICA Refinancing Program) 385,459,538 417,150,777 385,459,538 417,150,777

SME Foundation 151,940,000 151,940,000 151,940,000 151,940,000

Investment Promotion & Financing Facilities (IPFF) 538,048,574 553,426,022 538,048,574 553,426,022

Bangladesh Bank Solar Bio Gas & ETP Scheme 770,398,239 486,769,316 770,398,239 486,769,316

Bangladesh Bank (SMEDP 2) 1,058,025,362 987,725,362 1,058,025,362 987,725,362

Saudi Bangladesh Industrial & Agricultural Investment Company Limited 284,334,951 329,652,202 284,334,951 329,652,202

Bangladesh Bank Small Refinancing - Corona Affected-CMSMES 1,493,150,000 1,243,175,000 1,493,150,000 1,243,175,000

Bangladesh Bank Refinance Scheme for Working Capital Loan To Large Corporates 237,850,000 37,500,000 237,850,000 37,500,000

8,871,382,540 7,808,353,894 8,871,382,540 7,808,353,894

Total unsecured long-term loan 13,053,403,147 9,420,157,612 13,053,403,147 9,420,157,612

Unsecured Short Term Loans

Short-term loans

Trust Bank Limited 1,300,000,000 - 1,300,000,000 -

South Bangla Agriculture and Commerce Bank Limited 80,000,000 580,000,000 80,000,000 580,000,000

Community Bank Bangladesh Limited - 300,000,000 - 300,000,000

Dhaka Bank Limited - 700,000,000 - 700,000,000

The City Bank Limited 3,000,000,000 2,200,000,000 3,000,000,000 2,200,000,000

Mercantile Bank Limited 600,000,000 - 600,000,000 -

NRB Bank Limited 400,000,000 - 400,000,000 -

5,380,000,000 3,780,000,000 5,380,000,000 3,780,000,000

Dhaka Stock Exchange Limited

Chittagong Stock Exchange Limited

IDLC GroupIDLC Finance Limited

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BDT BDT BDT BDT

Call Loans

United Finance Limited 190,000,000 250,000,000 190,000,000 250,000,000


Pubali Bank Limited 980,000,000 960,000,000 980,000,000 960,000,000

Mutual Trust Bank Limited 300,000,000 290,000,000 300,000,000 290,000,000

Agrani Bank Limited - 1,210,000,000 - 1,210,000,000

Trust Bank Limited - 200,000,000 - 200,000,000

Community Bank Bangladesh Limited 500,000,000 - 500,000,000 -

2,260,000,000 3,260,000,000 2,260,000,000 3,260,000,000

Total unsecured short-term loans 7,640,000,000 7,040,000,000 7,640,000,000 7,040,000,000

Total Borrowings from other banks, financial institutions & agents 24,740,903,147 20,790,990,945 24,740,903,147 20,790,990,945

11 Deposits and other accounts

Current accounts and other accounts etc - - - -

Bills payable - - - -

Savings bank deposits - - - -

Term deposits (Note- 11.1) 77,646,295,500 78,131,272,875 76,692,710,500 76,273,087,133

Bearer certificate of deposits - - - -

Refundable deposits (Note- 11.2) 2,615,921,408 2,490,915,674 2,615,921,408 2,490,915,674

80,262,216,908 80,622,188,549 79,308,631,908 78,764,002,807

11.1 Term deposits


Add: Deposits received during the period/year 12,223,119,573 34,047,485,305 12,223,119,573 34,047,485,305

90,354,392,448 111,055,904,350 88,496,206,706 109,462,918,615

Less: Matured/encashed during the period/year 12,708,096,948 32,924,631,475 12,708,096,948 32,924,631,475

Inter-company deposit - - (904,600,742) 265,200,007


11.2 Refundable deposits

Deposits against loan and lease rental 144,689,277 168,256,969 144,689,277 168,256,969

Deposits against financing as per term of agreements (Security deposits) 2,471,232,131 2,322,658,705 2,471,232,131 2,322,658,705

2,615,921,408 2,490,915,674 2,615,921,408 2,490,915,674

The Company takes deposits from the clients of lease and loan on signing of agreement, refundable at the end of the contract period. Balance at December 31 stands as under:

This represents deposits received from institutions and individuals for a period not less than three months.


Security deposits are interest bearing while deposits against loan and lease are non interest bearing.

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12 Other liabilities

Payable and accrued expenses (Note- 12.1) 5,701,149,126 5,482,521,806 6,922,349,274 6,831,031,623

Provision for income tax (Note- 12.2) 2,401,164,817 2,233,115,280 2,727,210,282 2,518,089,999

Deferred liability-employee gratuity (Note- 12.3) 17,739,000 - 92,307,565 72,636,254

Portfolio investors' fund (Note- 12.4) - - 491,205,896 269,620,883

Interest suspense account (Note- 12.5) 577,231,110 383,179,850 577,231,110 383,179,850

Provision for doubtful accounts and future losses (Note- 12.6 (i)) 1,994,973,111 1,571,785,665 2,316,926,441 1,750,303,084

Unpaid/ Unclaimed dividend 782,613,568 28,684,911 844,873,568 28,684,911

Deferred tax liability (Annexure B) 183,216,257 190,249,256 217,936,718 226,594,467

11,658,086,989 9,889,536,768 14,190,040,854 12,080,141,073

12.1 Payable and accrued expenses

Receipt against leases 1,555,015,934 665,664,875 1,555,015,934 665,664,875

Liabilities for expenses 2,854,968,909 3,500,728,062 3,956,482,834 4,718,683,785

Lease Liability 517,527,101 526,565,739 632,652,063 644,634,084

Liabilities for other finance 773,637,182 789,563,130 778,198,443 802,048,879

5,701,149,126 5,482,521,806 6,922,349,274 6,831,031,623

12.2 Provision for income tax

Provision


Less: Adjustment during the period/year - - - -

10,522,008,203 9,442,368,881 12,291,263,603 10,969,747,130

Add: Provision made during the period/year 320,787,328 1,079,639,322 420,217,224 1,321,516,473

10,842,795,531 10,522,008,203 12,711,480,827 12,291,263,603

Settlement of previous year's tax liability - - - -


Advance tax


Add: Payment made during the period/year:

Under sections 64 and 74 of ITO, 1984 120,000,000 796,967,649 120,000,000 828,599,374

Deduction at source 32,701,969 124,936,945 91,061,120 268,066,028

Others 35,822 1,342,705 35,822 1,342,705

152,737,791 923,247,299 211,096,942 1,098,008,107

8,441,630,714 8,288,892,923 9,984,270,545 9,773,173,604

Less: Adjustment during the period/year - - - -

8,441,630,714 8,288,892,923 9,984,270,545 9,773,173,604

Net balance at December 31 2,401,164,817 2,233,115,280 2,727,210,282 2,518,089,999

12.3 Deferred Liability-employee gratuity

Balance at January 1 - - 72,636,254 61,744,884

Add: Addition during the period/year 17,739,000 - 20,339,816 10,891,370

17,739,000 - 92,976,070 72,636,254

Less: Payment during the period/year - - 668,505 -

Balance at period/year end 17,739,000 - 92,307,565 72,636,254

12.4 Portfolio investors' fund

Balance at January 1 - - 269,620,883 231,541,547

Add: Deposit and share sold by clients - - 2,402,511,865 5,498,852,570

- - 2,672,132,748 5,730,394,117

Less: Purchase of share and deposit withdraw by clients - - 2,180,926,852 5,460,773,234

Balance at period/year end - - 491,205,896 269,620,883


This represents the balance of deposits made with the IDLC Investments Limited by the portfolio investors to take margin loan and buy marketable securities. The balance of fund

has been arrived at as follows:

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12.5 Interest suspense accounts

On lease finance 36,081,337 28,754,522 36,081,337 28,754,522

On real-estate finance 150,522,290 131,695,417 150,522,290 131,695,417

On term finance 384,175,544 220,199,122 384,175,544 220,199,122

On car loan 4,725,168 838,118 4,725,168 838,118

On personal loan 1,726,771 1,692,671 1,726,771 1,692,671

On short term finance - - - 0

577,231,110 383,179,850 577,231,110 383,179,850

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BDT BDT BDT BDT

12.6 Provision for loans and advances/investments

12.6(i) Balance at January 1 1,571,785,665 1,661,443,447 1,750,303,084 1,741,869,167

Provision required for the period/year end 475,262,644 611,011,747 618,753,555 720,031,243

Provision released during the period/year (52,075,198) (394,410,029) (52,130,198) (405,337,826)

Provision charged for the period/year end (Note- 12.6 (ii)) 423,187,446 216,601,718 566,623,357 314,693,417

Write off during the period/year - 306,259,500 - 306,259,500


12.6(ii) Provision charged for the period

General provision (24,417,936) (125,855) (23,760,954) 544,158

Specific provision 447,605,377 (35,288,860) 449,550,377 (35,288,860)

Provision for diminutions in value of investments - (42,531,423) 140,833,929 27,677,605

423,187,441 (77,946,138) 566,623,352 (7,067,097)

Reason for changes in provision charged for the period:

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BDT BDT BDT BDT

12.6(iii) Product wise break up of provision

Lease 126,850,273 95,524,202 126,850,273 95,524,202

Long- term finance 1,148,335,088 764,937,888 1,148,335,088 764,937,888


Car loan 23,339,213 14,231,502 23,339,213 14,231,502

Investment in shares 7,864,000 7,864,000 300,247,083 159,413,154

Personal Loan 5,156,083 4,868,830 5,156,083 4,868,830


Loan against Deposit 4,592,699 4,630,993 4,592,699 4,630,993

Other Assets 220,997,514 288,374,000 220,997,514 290,632,760

Margin loan - - 29,570,247 24,709,505

1,994,973,111 1,571,785,665 2,316,926,442 1,750,303,084



Solo:

Incremental provision of IDLC Finance Limited for the period ended March 31, 2021 was BDT 423.19 million, which was a net release of BDT 77.95 million in the same period

of previous year. As per the breakdown of incremental provision for loans and investments, the main reason behind the BDT 501.13 million increase was the increase in specific

provision charged during the year by BDT 482.89 million, compared to the same period of previous year. This is mainly the result of the interventionary circular of the central

bank becoming ineffective from the start of 2021. The impact has been offset by increase in net release in general provision by BDT 24.42 million. Due to improvement in the

capital market investment portfolio, provision was not required.

Group:

Incremental provision of IDLC Group for the period ended March 31, 2021 was BDT 566.63 million, which was a net release of BDT 7.07 million in the same period of previous

year. As per the breakdown of incremental provision for loans and investments, the main reason behind the BDT 573.69 million decrease was the increase in specific provision

charged during the year by BDT 484.84 million, compared to the same period of previous year. This is mainly the result of the interventionary circular of the central bank that

becoming ineffective from the start of 2021. In addition, considering capital market investment portfolio and regulation for subsidiaries, provision for dimunition in investments

has increased by amounted BDT 113.15 million, compared to the same period of previous year.


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13 Share capital

Authorised

1,000,000,000 ordinary shares of BDT 10 each 10,000,000,000 10,000,000,000 10,000,000,000 10,000,000,000

Issued, subscribed and paid-up

377,050,780 ordinary shares of BDT 10 each 3,770,507,800 3,770,507,800 3,770,507,800 3,770,507,800

Paid-up share capital as on March 31, 2021 comprises the following:

Composition of shareholding:

31.03.2021 31.12.2020

Sl. No. Name of the Shareholders % of Number of

holding shares BDT BDT

1 SPONSORS/DIRECTORS

The City Bank Limited (CBL) and its subsidiaries 23.21 87,510,575 875,105,750 875,105,750

The City Bank Limited (CBL) 9.00 33,935,329 339,353,290 339,353,290

City Bank Capital Resources Limited (CBCRL) 9.90 37,328,028 373,280,280 373,280,280

City Brokerage Limited 4.31 16,247,218 162,472,180 162,472,180

Transcom Group 13.33 50,273,164 502,731,640 502,731,640

Eskayef Pharmaceuticals Limited 8.00 30,164,062 301,640,620 301,640,620

Transcraft Limited 4.01 15,132,033 151,320,330 151,320,330

Bangladesh Lamps Limited 1.32 4,977,069 49,770,690 49,770,690

Sadharan Bima Corporation (SBC) 7.62 28,727,494 287,274,940 287,274,940

Reliance Insurance Limited 7.00 26,393,553 263,935,530 263,935,530

Mercantile Bank Limited 5.50 20,737,791 207,377,910 207,377,910

56.66 213,642,577 2,136,425,770 2,136,425,770

2 GENERAL

Institutions:

Investment Corporation of Bangladesh (ICB) 6.82 25,715,237 257,152,370 262,574,440

Bangladesh Fund 1.21 4,560,054 45,600,540 49,585,540

United Securities Limited 1.04 3,920,767 39,207,670 -

Marina Apparels Limited 1.00 3,770,506 37,705,060 37,705,060

Other Institutions 13.03 49,145,920 491,459,200 502,447,880

Sub-Total 23.10 87,112,484 871,124,840 852,312,920

Individuals:

General Public (Individuals) 9.14 34,446,805 344,468,050 363,372,530

Sub-Total 9.14 34,446,805 344,468,050 363,372,530

3 FOREIGN

Institutions & Individuals 11.10 41,848,914 418,489,140 418,396,580

11.10 41,848,914 418,489,140 418,396,580

Total Holdings 100.00 377,050,780 3,770,507,800 3,770,507,800

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BDT BDT BDT BDT

14 Share premium


Add: Received during the period/year - - - -


15 Statutory reserves


Add: Transferred on appropriation of profit - 440,948,195 - 440,948,195



This represents Share Premium amount was received @50% over par value of share @BDT 100 against issue of 75,000 Ordinary Shares during IPO in 1993

and subsequently Share Premium amount was received @100 % over par value of share @BDT 10 per share on 125,683,593 no. of Ordinary Shares in 2017

against Rights Issue (1R:2).


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16 General reserves


Add: Transferred on appropriation of profit - - - -


17 Business commitments and contingencies

17.1 Contingent liabilities

Acceptances and endorsements - - - -

Letters of guarantee 115,373,500 90,066,000 115,373,500 90,066,000

Irrevocable letters of credit - - - -

Bills for collection - - - -

Indemnity bond - - - -

Corporate guarantee 1,550,000,000 1,550,000,000 1,550,000,000 1,550,000,000

1,665,373,500 1,640,066,000 1,665,373,500 1,640,066,000

17.2 Other commitments

Documentary credits and short term trade related transactions - - - -

Forward assets purchased and forward deposits placed - - - -

Un-drawn note issuance and revolving underwriting - - - -

Un-drawn formal standby facilities, credit lines - - - -

Lease and term finance commitments outstanding at period/year end 676,617,756 518,405,256 676,617,756 518,405,256

Real estate finance commitments outstanding at period/year end 867,902,170 719,931,379 867,902,170 719,931,379

Car loan commitments outstanding at period/year end 1,135,276 - 1,135,276 -

Personal loan commitments outstanding at period/year end 175,000 175,000 175,000 175,000

Loan Against Deposit commitments outstanding at period/year end - - - -

1,545,830,202 1,238,511,635 1,545,830,202 1,238,511,635


In the normal course of business, the Company makes various commitments and incurs certain contingent liabilities. No material losses are anticipated as a

result of these transactions. These contingent liabilities and business commitments are quantified below:

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18 Income statement

Income

Interest, discount and similar income (Note-18.1) 2,995,269,305 3,179,744,158 3,283,402,924 3,095,856,841

Dividend income (Note-21) 3,607,474 2,729,948 26,007,924 23,056,564

Fees, commission and brokerage (Note-22) - - 206,566,150 98,414,683

Other operating income (Note-23) 148,298,505 99,816,827 155,395,752 100,753,662

3,147,175,284 3,282,290,933 3,671,372,750 3,318,081,750

Expenses

Interest on deposits and borrowings etc. (Note-20) 1,514,294,978 2,175,942,922 1,495,916,997 2,148,874,733

Administrative expenses (Note-18.2) 423,553,610 349,746,357 518,404,699 421,713,856

Other expenses (Note-33) 84,138,509 86,606,958 106,962,287 104,364,313

Depreciation on assets (Note-32) 53,934,293 61,277,849 65,389,058 73,856,477

2,075,921,390 2,673,574,087 2,186,673,040 2,748,809,380

Operating Income 1,071,253,894 608,716,846 1,484,699,710 569,272,370

18.1 Interest, discount and similar income

Interest income (Note -19) 2,659,784,112 3,246,697,173 2,737,876,312 3,286,233,781

Gain on sale of marketable securities & DSE share (Note - 21) 265,113,091 (118,036,921) 462,435,985 (270,006,591)

Gain on sale of Government Treasury Bond (Note - 21) 23,221,268 - 23,937,455 -

Income from investment in bonds (Note - 21) 47,150,834 51,083,906 59,153,172 79,629,651

2,995,269,305 3,179,744,158 3,283,402,924 3,095,856,841

18.2 Administrative expenses

Salary and allowances (Note-24) 341,610,535 292,745,261 426,506,176 355,400,362

Rent, taxes, insurance, electricity, etc. (Note-25) 10,778,992 12,199,674 13,413,458 14,911,047

Legal expenses (Note-26) 9,455,632 1,783,975 10,294,480 2,709,121

Postage, stamp, telecommunication, etc. (Note-27) 10,024,329 9,285,550 11,747,505 11,204,567

Stationery, printing, advertisement, etc. (Note-28) 40,023,572 23,820,581 43,310,883 25,997,563

Managing Director's salary and fees (Note-29) 3,520,000 3,520,000 3,520,000 3,520,000

Directors' fees (Note-30) 299,200 237,600 393,700 394,049

Auditors' fees (Note-31) 201,250 201,250 288,750 288,750

Repair and maintenance of Company's assets (Note-32) 7,640,100 5,952,466 8,929,747 7,288,397

423,553,610 349,746,357 518,404,699 421,713,856

19 Interest income

This represents interest income from the following products:

Lease finance 78,685,805 111,470,198 78,685,805 111,470,198


Term finance 1,454,956,264 1,825,887,622 1,454,956,264 1,825,887,622


Car loan 32,286,796 40,509,299 32,286,796 40,509,299

Personal loan 3,011,990 4,584,484 3,011,990 4,584,484

Margin loan to portfolio investors - - 42,467,521 23,805,511

Loan to subsidiaries - 699,600 - -

2,383,150,041 2,920,606,491 2,425,617,562 2,943,712,402

Interest on balance with other banks and financial institutions 261,255,741 299,596,171 296,880,420 316,026,868

Loan against deposit 15,378,330 26,494,511 15,378,330 26,494,511

2,659,784,112 3,246,697,173 2,737,876,312 3,286,233,781

20 Interest on deposits and borrowings etc.

Interest on term deposits 1,248,787,701 1,865,867,553 1,227,634,153 1,833,834,960

Interest on borrowings 152,754,521 206,000,104 152,787,381 207,799,657

Interest on secured/unsecured zero coupon bonds 57,217,150 46,899,856 57,217,150 46,899,856

Interest on security deposit 35,140,611 36,085,366 35,140,611 36,085,366

Interest on call loan 8,255,153 10,458,611 8,255,153 10,458,611

Interest on lease rent 12,139,842 10,631,432 14,882,549 13,796,283

1,514,294,978 2,175,942,922 1,495,916,997 2,148,874,733


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BDT BDT BDT BDT

21 Investment income

Gain on sale of marketable securities 265,113,091 (118,036,921) 462,435,985 (270,006,591)

Gain on sale of Government Treasury Bond 23,221,268 - 23,937,455 -

Dividend income 3,607,474 2,729,948 26,007,924 23,056,564

Income from investment in bonds 47,150,834 51,083,906 59,153,172 79,629,651

339,092,667 (64,223,067) 571,534,536 (167,320,376)

22 Commission, exchange and brokerage

Commission & brokerage - - 176,088,507 72,859,511

Documentation fees - - 24,500 9,500

Fees from mutual fund & others - - 6,068,249 5,737,402

Issue management fees - - 2,000,000 9,600,000

Portfolio management fees - - 7,043,925 5,253,005

Corporate advisory fees - - 3,250,000 974,256

Settlement charges - - 12,090,969 3,981,009

- - 206,566,150 98,414,683

23 Other operating income

Application, processing and documentation fees 78,590,538 63,688,835 78,590,538 63,688,835

Loan settlement and others 44,082,541 25,494,600 44,082,541 25,494,600

Service charges 2,154,960 1,756,958 2,154,960 1,756,958

Gain on disposal of fixed assets 1,514,361 370,754 1,538,951 370,739

Account opening & BO account maintenance fees - - 596,907 168,140

Revenue from write off collection 19,116,237 5,503,170 19,116,237 5,503,170

Commission on Corporate Guarantee 985,347 663,542 985,347 663,542

Miscellaneous income 1,854,521 2,338,968 8,330,271 3,107,678

148,298,505 99,816,827 155,395,752 100,753,662

24 Salaries and allowances 341,610,535 292,745,261 426,506,176 355,400,362

25 Rent, taxes, insurance, electricity, etc.

Rent, rate and taxes 350,465 324,032 875,244 868,445

Insurance 2,861,029 3,093,674 3,369,140 3,927,811

Power and electricity 7,567,498 8,781,968 9,169,074 10,114,791

10,778,992 12,199,674 13,413,458 14,911,047

26 Legal expenses

Renewal and registration 6,277,340 1,222,725 6,457,488 1,764,721

Other professional charges 3,178,292 561,250 3,836,992 944,400

9,455,632 1,783,975 10,294,480 2,709,121

27 Postage, stamp, telecommunication, etc.

Postage 604,735 371,676 668,099 404,842

Telecommunication and internet etc. 9,419,594 8,913,874 11,079,406 10,799,725

10,024,329 9,285,550 11,747,505 11,204,567

28 Stationery, printing, advertisements, etc.

Stationery & printing 17,094,064 9,852,409 17,999,524 10,421,396

Advertisement and publicity 22,929,508 13,968,172 25,311,359 15,576,167

40,023,572 23,820,581 43,310,883 25,997,563


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BDT BDT BDT BDT

29 Managing Director's salary and benefits

Basic pay 1,500,000 1,500,000 1,500,000 1,500,000

Allowances 870,000 870,000 870,000 870,000

Bonus 1,000,000 1,000,000 1,000,000 1,000,000

Company's contribution to provident & gratuity fund 150,000 150,000 150,000 150,000

3,520,000 3,520,000 3,520,000 3,520,000

30 Directors' fees

Honorarium for attending meeting 299,200 237,600 393,700 394,049

299,200 237,600 393,700 394,049

31 Auditors' fees

Annual statutory audit fees (including VAT) 201,250 201,250 288,750 288,750

Other audit fees (including VAT) - - - -

201,250 201,250 288,750 288,750

32 Depreciation and repair of company's assets

Freehold assets (Annexure-A) 53,934,293 61,277,849 65,389,058 73,856,477

7,640,100 5,952,466 8,929,747 7,288,397

61,574,393 67,230,315 74,318,805 81,144,874

33 Other expenses

Bank charges 2,236,596 984,065 2,655,545 1,270,371

Books and periodicals 48,428 66,611 48,468 87,912

Car expenses 7,133,711 7,710,387 7,706,693 8,528,787

Donations and subscriptions 1,361,606 1,095,595 1,458,626 1,266,220

Medical & welfare expenses 14,627,665 10,832,749 15,011,961 11,247,929

Entertainment expenses 2,942,245 9,558,368 3,072,303 9,794,563

Consultancy fees 1,361,990 1,805,705 1,361,990 1,805,705

Office service expenses 21,017,906 22,067,155 25,362,010 26,329,724

Training expenses 1,730,105 2,004,926 1,773,101 2,118,384

Travel and conveyances 7,150,145 7,567,678 7,458,409 7,817,980

CDBL charges - - 619,955 160,806

Howla and Laga charge - - 17,992,719 11,161,184

Portfolio Management Charge 3,523,202 934,640 - -

Sales Incentive 13,901,982 15,845,129 14,846,097 16,426,732

Repossession fees and others 7,102,928 6,133,950 7,594,410 6,348,016

84,138,509 86,606,958 106,962,287 104,364,313


Repair and maintenance for premises, vehicles, computers and

computers accessories

31

31.03.2021 31.03.2020 31.03.2021 31.03.2020

BDT BDT BDT BDT

34 Earnings Per Share (EPS)

Earnings Per Share as shown in the face of the Profit and Loss Account is calculated in accordance with International Accounting Standard (IAS) 33: "Earnings Per Share".

Basic earnings per share has been calculated as follows:

Earnings attributable to ordinary shareholders (Net profit after tax) (A) 313,273,220 435,036,578 471,157,236 292,630,805

Weighted average number of ordinary shares outstanding during the period (B) 377,050,780 377,050,780 377,050,780 377,050,780

Earnings Per Share (A÷B) 0.83 1.15 1.25 0.78

31.03.2021 31.12.2020 31.03.2021 31.12.2020

35 Net Asset Value (NAV) Per Share BDT BDT BDT BDT

Net Asset (total assets less total liabilities) (A) 11,675,342,274 12,116,170,614 14,893,260,194 15,238,464,490

Total number of ordinary shares outstanding (B) 377,050,780 377,050,780 377,050,780 377,050,780

Net Asset Value per share (NAV) (A÷B) 30.96 32.13 39.50 40.41

36. Net Operating Cash Flows Per Share (NOCFPS)

Net cash flows from operating activities (A) (223,106,098) (920,627,587) 1,093,217,698 (172,182,679)

Total number of ordinary shares outstanding (B) 377,050,780 377,050,780 377,050,780 377,050,780

Net operating cash flows per share (NOCFPS) (A÷B) (0.59) (2.44) 2.90 (0.46)

37 Reconciliation of Net Profit with Cash Flows from Operating Activities

Net profit after tax 313,273,220 435,036,578 471,157,263 292,630,779

Items not involved in cash movement:

Add: Depreciation 53,934,293 61,277,849 65,389,058 73,856,477

Add: Provision for loans and investments 423,187,441 (77,946,138) 566,623,352 (7,067,097)

Add: Provision for taxation 320,787,328 273,367,421 420,217,224 323,360,487

Add/ (Less): Accrued expenses (295,322,700) 55,671,001 (423,334,332) 182,657,033

Add/ (Less): Accrued income 35,259,540 (243,987,170) 52,166,197 (305,968,137)

Less: Gain On Disposal of Fixed assets (1,514,361) (370,754) (1,538,951) (370,739)

Increase/(Decrease) in Employee gratuity 17,739,000 9,561,880 19,671,311 11,552,720

Increase/(Decrease) in deferred tax 14,005,906 (21,741,016) 26,701,871 (39,651,799)

881,349,666 490,869,651 1,197,052,993 530,999,725


(Increase)/Decrease in Loans & advances (1,318,540,563) (113,729,281) (1,384,238,794) (13,443,379)

(Increase)/Decrease in Other assets 28,579,151 (57,696,727) 28,566,811 (58,477,461)

Increase/(Decrease) in Short term borrowings - - - -

Increase/(Decrease) in Term & other deposits (359,971,641) (1,319,471,411) 544,629,101 (868,881,320)

Increase/(Decrease) in Payable and accrued expenses 504,163,820 218,387,360 502,668,256 218,387,361

(Increase)/Decrease in Income tax (152,737,791) (156,848,078) (211,096,942) (176,110,057)

Increase/(Decrease) in Portfolio investors fund - - 221,585,013 177,481,554

Increase/(Decrease) in Interest suspense 194,051,260 17,860,899 194,051,260 17,860,899

(1,104,455,764) (1,411,497,238) (103,835,295) (703,182,403)

Net cash flows from/(used in) operating activities (223,106,098) (920,627,587) 1,093,217,698 (172,182,679)

____________________


________________



Adjustments to reconcile net profit after tax to net cash provided by operating

activities

Reason for changes in Earnings Per Share (EPS):

Solo:

EPS of IDLC Finance Limited for the period ended March 31, 2021 is BDT 0.83, which was BDT 1.15 in the same period of previous year. The primary reason behind this decline is the higher

increase in provision for loans and advances (increase by BDT 501 million) than profit before provision (increase by BDT 462 million). Total operating income increased by BDT 526 million, and

operating rose by BDT 64 million. As such, aggregately net profit after tax reduced to BDT 313 million.

Group:

In consolidated financial statement, EPS for the period ended March 31, 2021 is BDT 1.25, which was BDT 0.78 in the same period of previous year. The primary reason behind this growth is

investment income (increase of BDT 739 million), increase in net interest income (increase by BDT 105 million). In addition operating expense rose (by BDT 91 million) and provision rose (by BDT

574 million). As such, aggregately net profit after tax improved to BDT 471 million.

Reason for changes in Net Operating Cash Flows Per Share (NOCFPS):

Solo:

NOCFS of IDLC Finance Limited for the period ended March 31, 2021 is BDT (0.59) which was BDT (2.44) in the same period of previous year. The primary reason behind this variance is the

decrease in cash generation from loans & advances by BDT 1,205 million, offset by increase in receipt from other operating income by BDT 510 million. On the other hand, cash generation from

term & other deposits increased by BDT 959 million and payable and accrued expenses rose by BDT 283 million. As such, aggregately cash outflow from operating activities has reduced by

BDT698 million during the period ended on March 31, 2021.

Group:

In consolidated financial statement, NOCFPS for the period ended March 31, 2021 is BDT 2.90 which was BDT (0.46) in the same period of previous year. The primary reason behind this variance

is the increase in cash generation from term and other deposits by BDT 1,413 million and rise in receipt from Other Operating Income by BDT 789 million. On the other hand, cash generation from

loans and advances and payable and accrued expenses has declined by BDT 1,163 million and BDT 3.95 million, respectively. As such, aggregately cash generation form operating activities has risen

by BDT 1,265 million during the period ended on March 31, 2021.

IDLC Group



Sd/- Sd/- Sd/-

Sd/-Sd/-

32

Annexure A

Fixed assets including land, building, furniture and fixtures-for 1st quarter end 2021

Written down

Balance at Addition Disposal/ Balance at Balance at Charged Adjustment Balance at value at

January 1, during adjustment during March 31, Rate January 1, for during March 31, March 31,

Asset category 2021 the period/year the period/year 2021 2021 the period/year the period/year 2021 2021

BDT BDT BDT BDT % BDT BDT BDT BDT BDT

Free hold assets:

Land 26,958,470 - - 26,958,470 - - - - - 26,958,470

Building 207,519,303 - - 207,519,303 2.50 41,501,049 1,296,996 - 42,798,045 164,721,257.67

Right-of-use Asset 669,692,886 9,786,200 (8,019,628) 671,459,458 162,361,536 28,540,866 (8,019,628) 182,882,774 488,576,684

Furniture and fixtures 96,518,651 819,723 (412,914) 96,925,460 12.50 61,136,133 2,326,792 (381,771) 63,081,154 33,844,306

Electrical equipment 74,341,789 848,795 (370,812) 74,819,772 20.00 63,220,804 2,274,911 (261,837) 65,233,878 9,585,894

Curtain and carpets 4,819,169 370,737 (113,100) 5,076,806 33.33 3,512,798 220,099 (85,094) 3,647,803 1,429,003

Office equipment 96,331,793 126,217 (4,167,957) 92,290,053 20.00 88,034,715 2,632,824 (4,161,512) 86,506,027 5,784,026

Office decoration 150,718,555 148,690 - 150,867,245 20.00 127,152,247 5,077,976 - 132,230,223 18,637,022

Computers 198,411,800 19,900 (1,281,923) 197,149,777 20.00 154,832,650 4,115,101 (1,281,643) 157,666,108 39,483,669

Software (Office Operation) 41,488,486 245,491 - 41,733,977 33.33 38,024,243 648,744 - 38,672,987 3,060,989

Software (Business Operation) 159,817,577 - - 159,817,577 20.00 139,996,280 1,371,097 - 141,367,377 18,450,200

Telephone and telex 21,020,649 204,250 (88,995) 21,135,904 33.33 12,516,303 1,406,967 (71,369) 13,851,901 7,284,003

Motor vehicles 230,483,425 7,168,761 (11,332,000) 226,320,186 25.00 201,040,339 4,021,920 (11,205,898) 193,856,361 32,463,825

Total as on March 31, 2021 1,978,122,552 19,738,764 (25,787,329) 1,972,073,987 1,093,329,097 53,934,293 (25,468,752) 1,121,794,638 850,279,349

Total as on December 31, 2020 1,924,185,117 196,490,832 (142,553,397) 1,978,122,552 997,902,078 236,765,041 (141,338,021) 1,093,329,097 884,793,455

Cost Depreciation

33

A(a) Consolidated fixed assets including land, building, furniture and fixtures-for 1st quarter end 2021

Written down

Balance at Addition Disposal/ Balance at Balance at Charged Adjustment Balance at value at

January 1, during adjustment during March 31, Rate January 1, for during March 31, March 31,

Asset category 2021 the period/year the period/year 2021 2021 the period/year the period/year 2021 2021

BDT BDT BDT BDT % BDT BDT BDT BDT BDT

Free hold assets:

Land 26,958,470 - - 26,958,470 - - - - - 26,958,470

Building 207,519,303 - - 207,519,303 2.50 41,501,049 1,296,996 - 42,798,045 164,721,258

Right-of-use Asset 828,926,797 11,983,727 (8,019,628) 832,890,896 213,956,712 35,527,992 (8,019,628) 241,465,076 591,425,820

Furniture and fixtures 114,876,763 901,753 (412,914) 115,365,602 12.50 73,328,587 2,698,167 (381,771) 75,644,983 39,720,619

Electrical equipment 98,261,959 1,058,692 (510,292) 98,810,359 20.00 82,701,234 2,726,380 (295,886) 85,131,728 13,678,631

Curtain and carpets 6,686,008 394,137 (188,100) 6,892,045 33.33 5,079,729 279,698 (124,674) 5,234,753 1,657,293

Office equipment 134,180,441 139,294 (4,167,957) 130,151,778 20.00 121,731,695 3,116,674 (4,161,512) 120,686,857 9,464,921

Office decoration 181,096,710 521,245 - 181,617,955 20.00 150,821,707 6,113,008 - 156,934,715 24,683,239

Computers 223,747,542 628,930 (1,281,923) 223,094,549 20.00 177,273,104 4,505,867 (1,281,643) 180,497,328 42,597,221

Software (Office Operation) 51,728,865 245,491 - 51,974,356 33.33 47,398,705 719,789 - 48,118,494 3,855,862

Software (Business Operation) 164,742,453 - - 164,742,453 20.00 143,791,663 1,570,584 - 145,362,247 19,380,206

Telephone and telex 24,904,727 340,385 (128,995) 25,116,117 33.33 15,807,389 1,507,319 (91,641) 17,223,067 7,893,050

Motor vehicles 270,904,166 7,168,761 (11,578,000) 266,494,927 25.00 232,874,961 5,326,584 (11,451,893) 226,749,652 39,745,275

Total as on March 31, 2021 2,334,534,203 23,382,415 (26,287,809) 2,331,628,809 1,306,266,535 65,389,058 (25,808,648) 1,345,846,945 985,781,864

Total as on December 31, 2020 2,296,151,837 203,180,479 (164,798,113) 2,334,534,203 1,176,175,444 285,866,458 (155,775,367) 1,306,266,535 1,028,267,669

Cost Depreciation

34

Annexure B- Deferred Tax

31.03.2021 31.12.2020 31.03.2021 31.12.2020

BDT BDT BDT BDT

Deferred tax assets (Note 9) 241,552,404 262,591,309 (21,038,904) 334,322,679 369,682,300 (35,359,620)

Deferred tax liabilities (Note 12) 183,216,257 190,249,256 7,033,000 217,936,717 226,594,468 8,657,750

Total (14,005,905) (26,701,870)

Deferred tax asset is arrived at as follows:

Particulars Carrying

amount Tax base

(Taxable)/deductible

temporary difference Carrying amount Tax base


temporary difference

BDT BDT BDT BDT BDT BDT

2021

Assets (excluding land):

Fixed assets net of depreciation (Annexure-A) 334,744,195 458,210,380 123,466,185 370,579,673 523,637,131 153,057,457

Difference of vehicle* (3,146,458) - 3,146,458 (6,583,886) - 6,583,886

331,597,737 458,210,380 126,612,643 363,995,787 523,637,131 159,641,343

Liabilities:

Loss on sale of secondary shares - - - 165,446,357 - 165,446,357

Lease Liability-Rent 517,527,101 - 517,527,101 632,652,063 - 632,652,063

Gratuity provision (net of payment) - - - 74,568,565 - 74,568,565

Total 517,527,101 - 517,527,101 872,666,985 - 872,666,985

IDLC FL IDLC SL IDLC IL IDLC AML

Applicable tax rate for Business or Profession 37.50% 32.50% 37.50% 32.50%

Applicable tax rate for loss on sale of secondary shares 10.00% 10.00% 10.00% 10.00%

Deferred tax asset as on March 31, 2021 241,552,404 334,322,679

Deferred tax has been calculated based on deductible/taxable temporary difference arising due to difference in the carrying amount of the assets and its tax base in accordance with the provision of International Accounting

Standard (IAS) 12: "Income Taxes".


Deferred tax

(expenses)/ income


Deferred tax (expenses)/

income accounted during

35

Particulars Carrying

amount Tax base


temporary difference Carrying amount Tax base


temporary difference

BDT BDT BDT BDT BDT BDT

2020

Assets (excluding land):

Fixed assets net of depreciation (Annexure-A) 350,503,635 470,545,702 120,042,067 386,339,113 535,972,453 149,633,339

Difference of vehicle* (1,485,448) - 1,485,448 (4,922,876) - 4,922,876

Total 349,018,187 470,545,702 121,527,515 381,416,238 535,972,453 154,556,215

Liabilities:

Loss on sale of secondary shares 195,563,380 - 195,563,380 506,713,900 - 506,713,900

Lease Liability-Rent 526,565,739 - 526,565,739 644,634,084 - 644,634,084

Gratuity provision (net of payment) - - - 72,636,254 - 72,636,254

Total 722,129,119 - 722,129,119 1,223,984,238 - 1,223,984,238



Applicable tax rate for loss on sale of secondary shares 10.00% 10.00% 10.00% 10.00%

Deferred tax asset as on December 31, 2020 262,591,309 369,682,300

Deferred tax liability is arrived at as follows:

2021

ROU-Rent, net of depreciation 488,576,684 - (488,576,684) 591,425,822 - (591,425,822)

Total taxable temporary differences for the period 488,576,684 - (488,576,684) 591,425,822 - (591,425,822)

Applicable tax rate (2021) 37.50% 32.50% 37.50% 32.50%

Deferred tax liabilities as on March 31, 2021 183,216,257 217,936,717

2020

ROU-Rent, net of depreciation 507,331,350 - (507,331,350) 614,970,087 - (614,970,087)

Fixed assets net of depreciation (Annexure-A) - - - - - -

Total taxable temporary differences for the year 2020 507,331,350 - (507,331,350) 614,970,087 - (614,970,087)



Deferred tax liabilities as on December 31, 2020 190,249,256 226,594,468

* This represents the permanent difference related to sedan cars, not plying for hire, owned by IDLC. As per the provisions of Income Tax Ordinance 1984, depreciation on such cars is allowed only up to certain limit of cost (currently BDT 2.5

million per car) of such cars for tax purpose. Difference for vehicle represents the amount of depreciated cost exceeding such limits.

2021: Consolidated deferred tax expense was BDT 26.71 million, which includes BDT 14.01 million for deferred tax expense of IDLC Finance Limited, BDT 2.02 million for deferred tax expense of IDLC Securities

Limited, BDT 10.98 million for deferred tax expense of IDLC Investments Limited and BDT 0.30 million for deferred tax income of IDLC Asset Management Limited.

2020: Consolidated deferred tax income was BDT 58.42 million, which includes BDT 32.66 million for deferred tax income of IDLC Finance Limited, BDT 7.98 million for deferred tax income of IDLC Securities

Limited, BDT 16.41 million for deferred tax income of IDLC Investments Limited and BDT 1.36 million for deferred tax income of IDLC Asset Management Limited.


36

SL. Nature of

Departure Title of IAS/IFRS Treatment of IAS/IFRS

Treatment Adopted as per Bangladesh

Bank

Financial or Presentation Effect of

the Departure

1 Measurement of

provision for

leases, loans and

advances

(financial assets

measured at

amortized cost)

IFRS 9 “Financial

Instruments”

An entity shall assess at the end of each

reporting period whether there is any

objective evidence that a financial asset

or group of financial assets measured at

amortized cost is impaired.

If any such evidence exists, expected

credit losses are required to be measured

through a loss allowance at an amount

equal to:

a) the 12-month expected credit losses

(expected credit losses that result

from those default events on the

financial instrument that are

possible within 12 months after the

reporting date); or

b) full lifetime expected credit losses

(expected credit losses that result

from all possible default events over

the life of the financial instrument).

As per FID circular No. 08, dated 03 August

2002, FID circular No. 03, dated 03 May 2006

and FID circular No. 03, dated 29 April 2013,

a general provision at 0.25% to 5% under

different categories of unclassified loans

(good/standard loans and Special Mentioned

Accounts (SMA)) has to be maintained

irrespective of objective evidence of

impairment on lease, loans and advances.

Also provision for sub-standard investments,

doubtful investments and bad losses has to be

provided at 20%, 50% and 100% respectively

for investments depending on the duration of

overdue.

In separate Financial Statements, an

amount of BDT 423.19 million has been

charged as incremental provision for

leases, loans and advances, which

includes net release of BDT 24.42

million as general provision on good

loan for the year 2021. Also, as at 31

March 2021, accumulated provision for

leases, loans and advances stand at BDT

1,994.97 million.

In consolidated Financial Statements,

the same amount is BDT 566.62 million

which includes net release in general

provision of BDT 23.76 million. Also, as

at 31 March 2021, accumulated

provision for leases, loans and advances

stand at BDT 2,316.93 million.

2 Valuation of

Investments in

quoted and

unquoted shares

IFRS 9 "Financial

Instruments”

Investment in shares falls either under at

“fair value through profit/loss (FVTPL)’

or “fair value through other

comprehensive income (FVTOCI)”

where any change in the fair value in case

of FVTPL at the year-end is taken to

profit of loss, and any change in fair value

in case of FVTOCI is taken to other

comprehensive income.

As per FID circular No. 08, dated 03 August

2002 investments in quoted shares and

unquoted shares are revalued at the year end at

market price and as per book value of last

audited balance sheet respectively. Provision

should be made for any loss arising from

diminution in value of investment; however in

case of any unrealized gain, no such gain can

be recognized and investments are recognized

at cost only.

During this year, total market value of all

shares of IDLC Finance Limited is more

than the cost price, while for the

subsidiaries as whole, the market price is

less than cost price.

As on March 31, 2021 there was BDT

118.28 million unrealised loss on

consolidated investment in marketable

securities and BDT 175.15 million

unrealised gain on investment by IDLC

Finance Limited in marketable

securities. (except investment in

government bond)

Annexure C - Disclosure of deviations from few requirements of IAS/IFRS due to mandatory compliance with Bangladesh Bank’s requirements

37

SL. Nature of



Bank


the Departure

3 Recognition of

interest income

for SMA and

classified lease,

loans and

advances

IFRS 9 "Financial

Instruments"

Income from financial assets measured at

amortized cost is recognized through

effective interest rate method over the

term of the investment. Once a financial

asset is impaired, investment income is

recognized in profit and loss account on

the same basis based on revised carrying

amount.

As per FID circular No. 03, dated 03 May 2006,

once an investment on leases, loans and

advances is termed as "Special Mention

Account (SMA)", interest income from such

investments are not allowed to be recognized

as income, rather the respective amount needs

to be credited as a liability account like: interest

suspense account.

At the period end, in separate Financial

Statements interest suspense account has

decreased to BDT 577.23 million from

BDT 383.18 million resulting in increase

of BDT 194.05 million of interest

suspense. This amount has been shown

in other liabilities in note 12.5

4 Presentation of

cash and cash

equivalent

IAS 7 "Statement

of Cash Flows"

Cash equivalent are short term, highly

liquid investments that are readily

convertible to known amounts of cash

and only include those investments which

are for a short tenure like: 3 months or

less period.

In the light of above, balance with

Bangladesh Bank and fixed term deposits

should be treated as investment asset

rather than cash equivalent as it is illiquid

asset and not available for use in day to

day operations.

Bangladesh Bank has issued templates for

financial statements vide DFIM Circular No.

11, dated 23 December 2009 which will strictly

be followed by all banks and NBFIs.

The templates of financial statements provided

detail presentation for statement of cash flows.

Financial Statements for the first quarter

end 2021 and corresponding period of

2020 have been prepared as per

guideline (DFIM Circular No. 11, dated

23 December 2009) of Bangladesh

Bank.

5 Measurement of

deferred tax

asset

IAS 12 "Income

Tax"

A deferred tax asset shall be recognized

for all deductible temporary differences

to the extent that it is probable that

taxable profit will be available against

which the deductible temporary

difference can be utilized.

As per DFIM circular No. 7, dated 31 July

2011, no deferred tax asset can be recognized

for any deductible temporary difference against

the provision for lease, loans and advances.

During this period there is no impact in

the financial statements due to this

departure as the Company did not

consider any deductible temporary

difference against the provision for

leases, loans and advances.

6 Presentation and

disclosure of

Financial

IAS 1

"Presentation of

Other Comprehensive Income (OCI) is a

component of financial statements or the

elements of OCI are to be included in a


financial statements vide DFIM Circular No.





38

SL. Nature of



Bank


the Departure

Statements and

Financial

Instruments

Financial

Statements"

IFRS 9 “Financial

Instruments”

&

IFRS 7 "Financial

Instruments:

Disclosure"

single Other Comprehensive Income

statement.

IAS 1 requires separate line item for

intangible assets on the face of statement

of financial position.

IFRS 9 and IFRS 7 require specific

presentation and disclosure relating to all

financial instruments.

11, dated 23 December 2009 which will strictly

be followed by all banks and NBFIs.

The templates of financial statements issued by

Bangladesh Bank do not include Other

Comprehensive Income (OCI) nor are the

elements of Other Comprehensive Income

allowed to include in a Single Comprehensive

Income Statement.

Intangibles assets are not separately presented

on the face of statement of financial position;

rather it is presented along with the line item of

fixed assets.

As per Bangladesh Bank guidelines, financial

instruments are categorized, recognized and

measured differently from those prescribed in

IAS 39. As such some disclosure and

presentation requirements of IFRS 7 and IAS

32 have not been made in the accounts.



Bank.

7 Preparation of

“Statement of

Cash Flows”

IAS 7 "Statement

of Cash Flows"

The Cash flow statement can be prepared

using either the direct method or the

indirect method. The presentation is

selected to present these cash flows in a

manner that is most appropriate for the

business or industry. The method selected

is applied consistently.

As per DFIM Circular No. 11, dated 23

December 2009, Cash flow statement has been

guided by the Bangladesh Bank which is the

mixture of direct and indirect method.




guideline (DFIM Circular No. 11 dated


Bank.

8 Current/Non-

current

distinction

IAS 1

“Presentation of

Financial

Statement”

As per Para 60 of IAS 1 “Presentation of

Financial statement” An entity shall

present current and non-current assets

and current and non-current liabilities as

separate classification in its statement of

financial position.


December 2009, Bangladesh Bank has issued

templates for financial statements which is

applicable for all the Financial Institutions. In

this templates there is no current and non-

current segmentation of assets and liabilities






Bank.


39

SL. Nature of



Bank


the Departure

9 Off-balance

sheet items

IAS 1

"Presentation of

Financial

Statements"

There is no concept of off-balance sheet

items in any IFRS; hence there is no

requirement for disclosure of off-balance

sheet items on the face of the balance

sheet.


December 2009, off-balance sheet items (e.g.

letter of credit, letter of guarantee etc.) must be

disclosed separately on the face of the balance

sheet.






Bank.

There is no financial impact for this

departure but there is a disclosure in the

financial statements.

10 Impairment of

Margin Loan

(Loans and

receivables

IFRS 9 “Financial

Instruments”

Measurement after initial recognition at

amortized cost and recording of changes

through profit and loss.

As per Bangladesh Securities and Exchange

Commission (BSEC) Circular No.

SEC/CMRRCD/2009-193/196 dated 28

December 2016, provisions for the year 2016

on impairment of principal portion of margin

loan shall be kept at 20% on each quarter for

the five quarters starting from December 2016.

There is no such impact for this.

However, we have been maintaining full

provision for unrealized loss (if any) of

margin loan in the portfolio.

11 Complete set of

financial

statements

IAS 1

"Presentation of

Financial

Statements"

As per IAS 1: "Presentation of Financial

Statements’’ complete set of financial

statements are

i) statement of financial position,

ii)statement of profit or loss and other

comprehensive income,

iii) statement of changes in equity,

iv) statement of cash flows,

v) notes, comprising significant

accounting policies and other explanatory

information and


December 2009, complete set of financial

statements are

i) balance sheet,

ii) profit and loss account,

iii) statement of cash flows,

iv) statement of changes in equity,

v) statement of liquidity,

vi) notes, comprising significant accounting

policies and other explanatory information.






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vi) statement of financial position at the

beginning of preceding period for

retrospective restatement.

12 Intangible asset IAS 1

"Presentation of

Financial

Statements"


Statements’’ para 54: the statement of

financial position shall include separate

line item for intangible assets.


December 2009, there is no option for separate

line item for intangible asset in the balance

sheet.

We present intangible asset in the balance sheet

as part of fixed assets and provide details in

annexure-A as separate line item.






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13 Other

comprehensive

income

IAS 1

"Presentation of

Financial

Statements"


Statements’’ Other Comprehensive

Income (OCI) is a component of financial

statements or the elements of OCI are to

be included in a single OCI statement.


financial statements which will strictly be

followed by financial institutions. The

templates of financial statements issued by

Bangladesh Bank do not include Other

Comprehensive Income (OCI) nor are the

elements of OCI allowed to be included in a

single OCI statement.

As such the financial institution does not

prepare the other comprehensive income

statement. However, elements of OCI, if any,

are shown in the statements of changes in

equity.



2020 have been prepared as per the

guideline and templates issued by

Bangladesh Bank.



14 Disclosure of

presentation of

profit

N/A There is no requirement to show

appropriation of profit in the face of

statement of comprehensive income.

As per DFIM circular no 11, dated 23

December 2009, an appropriation of profit

should be disclosed in the face of profit and

loss account






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