IDLC Finance Limited Bay’s Galleria (1 Floor) 57 Gulshan ...€¦ · 4 Note 31.03.2020 31.12.2019...

1

IDLC FINANCE LIMITED

Declaration by CEO and CFO

Date: May 14, 2020

The Board of Directors

IDLC Finance Limited

Bay’s Galleria (1st Floor)

57 Gulshan Avenue

Dhaka.

Subject: Declaration on Financial Statements for the period ended on March 31, 2020

Dear Sirs,

Pursuant to the condition No. 1(5) (xxvi) imposed vide the Commission’s Notification No.

BSEC/CMRRCD/2006-158/207/Admin/80, dated June 03, 2018 under section 2CC of the Securities and

Exchange Ordinance, 1969, we do hereby declare that:

(1) The Financial Statements of IDLC Finance Limited for the period ended on March 31, 2020 have been

prepared in compliance with International Accounting Standards (IAS) or International Financial

Reporting Standards (IFRS), as applicable in the Bangladesh and any departure there from has been

adequately disclosed;

(2) The estimates and judgments related to the financial statements were made on a prudent and reasonable

basis, in order for the financial statements to reveal a true and fair view;

(3) The form and substance of transactions and the Company’s state of affairs have been reasonably and

fairly presented in its financial statements;

(4) To ensure above, the Company has taken proper and adequate care in installing a system of internal

control and maintenance of accounting records;

(5) Our internal auditors have conducted periodic audits to provide reasonable assurance that the

established policies and procedures of the Company were consistently followed; and

(6) The management’s use of the going concern basis of accounting in preparing the financial statements

is appropriate and there exists no material uncertainty related to events or conditions that may cast

significant doubt on the Company’s ability to continue as a going concern.

2

In this regard, we also certify that:

(i) We have reviewed the financial statements for the period ended on March 31, 2020 and that to the best

of our knowledge and belief:

(a) these statements do not contain any materially untrue statement or omit any material fact or contain

statements that might be misleading;

(b) these statements collectively present true and fair view of the Company’s affairs and are in

compliance with existing accounting standards and applicable laws.

(ii) There are, to the best of knowledge and belief, no transactions entered into by the Company during the

year which are fraudulent, illegal or in violation of the code of conduct for the company’s Board of

Directors or its members.

Sincerely yours,

Sd/- Sd/-

(Arif Khan) (Masud Karim Majumder)

CEO & Managing Director Chief Financial Officer (CFO)

Date: May 14, 2020 Date: May 14, 2020

Financial Statements


as at and for the period ended March 31, 2020

3

Note 31.03.2020 31.12.2019

BDT BDT

PROPERTY AND ASSETS

Cash 3

In hand (including foreign currencies) 3.1 487,879 440,000

Balance with Bangladesh Bank and its agent (including foreign currencies) 3.2 3,222,953,582 2,176,870,971

3,223,441,461 2,177,310,971

Balance with other banks and financial institutions 4

Inside Bangladesh 4(a) 9,055,877,574 12,922,670,075

Outside Bangladesh 4(b) - -

9,055,877,574 12,922,670,075

Money at call and short notice 5 - -

Investments 6

Government 4,043,422,223 1,380,723,983

Others 4,969,737,150 5,554,544,240

9,013,159,373 6,935,268,223

Loans and advances 7

Loans, cash credit, overdraft etc. 92,585,425,456 92,345,977,331

Bills purchased and discounted - -

92,585,425,456 92,345,977,331

Fixed assets including land, building, furniture and fixtures 8(c) 1,054,306,858 1,119,976,393

Other assets 9 2,047,449,039 1,884,075,443

Non-banking assets - -

Total Assets 116,979,659,761 117,385,278,436

LIABILITIES AND CAPITAL

Liabilities

Borrowings from other banks, financial institutions and agents 10 13,665,021,113 14,227,773,689

Deposits and other accounts 11

Current accounts and other accounts etc. - -

Bills payable - -

Savings bank deposits - -

Term deposits 74,526,420,064 75,415,433,310

Bearer certificate of deposits - -

Other deposits 2,510,281,253 2,490,149,327

77,036,701,317 77,905,582,637

Other liabilities 12 11,967,735,119 11,234,350,677

Total Liabilities 102,669,457,549 103,367,707,003

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 2,509,921,870 2,509,921,870

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

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

Retained earnings 5,722,683,438 5,430,052,634

Total Equity attributable to equity holders of the company 14,310,199,038 14,017,568,234

Non-controlling interest 3,174 3,199

Total Liabilities and Shareholders' equity 116,979,659,761 117,385,278,436

IDLC Finance Limited and its Subsidiaries

Consolidated Balance Sheet (Un-audited) as at March 31, 2020

4

Note 31.03.2020 31.12.2019

BDT BDT

- -

OFF-BALANCE SHEET ITEMS

Contingent liabilities 17.1

Acceptances and endorsements - -

Letters of guarantee 139,566,000 50,000,000

Irrevocable letters of credit - -

Bills for collection - -

Indemnity bond - -

Corporate guarantee 750,000,000 750,000,000

889,566,000 800,000,000

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 1,541,639,393 1,238,722,240

1,541,639,393 1,238,722,240

Total Off-Balance Sheet items including contingent liabilities 2,431,205,393 2,038,722,240

Net Assets Value (NAV) per share 35 37.95 37.18

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

Dhaka, May 14, 2020

Chairman Director

Chief Financial Officer

CEO & Managing Director

Company Secretary

Sd/-

Sd/-Sd/-

5

Note 31.03.2020 31.03.2019

BDT BDT

Interest income 19 3,286,233,781 3,036,432,436

Interest on deposits and borrowings etc. 20 (2,148,874,733) (1,969,390,524)

Net interest income 1,137,359,048 1,067,041,912

Investment income 21 (167,320,376) 70,397,366

Commission, exchange and brokerage 22 98,414,683 129,612,469

Other operating income 23 100,753,662 107,758,690

Total operating income 1,169,207,017 1,374,810,437

Salaries and allowances 24 355,400,362 343,682,132

Rent, taxes, insurance, electricity etc. 25 14,911,047 14,381,708

Legal expenses 26 2,709,121 3,885,987

Postage, stamp, telecommunication etc. 27 11,204,567 10,457,593

Stationery, printing, advertisements etc. 28 25,997,563 27,576,368

Managing Director's salary and benefits 29 3,520,000 3,400,000

Directors' fees 30 394,049 450,576

Auditors' fees 31 288,750 288,750

Charges on loan losses - -

Depreciation and repair of Company's assets 32 81,144,874 82,459,147

Other expenses 33 104,364,313 90,422,654

Total operating expenses 599,934,647 577,004,916

Profit before provision 569,272,370 797,805,521

Provision for loans and investments 12.6(ii)

General provision 544,158 18,401,654

Specific provision (35,288,860) 132,435,875

Provision for diminution in value of investments 27,677,605 (146,516,895)

Other provisions - -

Total provision (7,067,097) 4,320,634

Total profit before taxation 576,339,467 793,484,887

Provision for taxation

Current tax expense 12.2 323,360,487 249,211,126

Deferred tax (income)/expense 9.4 (39,651,799) 28,933,678

283,708,688 278,144,804

Net profit after taxation 292,630,779 515,340,083

Attributable to:

Shareholders of the Company 292,630,805 515,340,057

Non-controlling interest (25) 26

292,630,779 515,340,083

Retained surplus 292,630,805 515,340,057

Earnings Per Share (EPS) 34 0.78 1.37


Dhaka, May 14, 2020

IDLC Finance Limited and its SubsidiariesConsolidated Profit and Loss Account (Un-audited) for the period ended March 31, 2020

Chairman Director



Company Secretary

Sd/-

Sd/-Sd/-

6

31.03.2020 31.03.2019

BDT BDT

A) Cash flows from operating activities

Interest received 3,009,382,353 2,990,715,452

Interest paid (2,093,203,732) (1,624,476,295)

Dividend received 23,056,564 44,510,401

Fees and commission received 98,414,683 129,612,469

Paid to employees and suppliers (526,078,170) (500,745,615)

Payment of income tax (176,110,057) (203,550,653)

Received from other operating activities (89,994,017) 131,575,206

245,467,625 967,640,964

Increase/(decrease) in operating assets and liabilities

Lease receivable 83,361,972 172,585,896

Long-term finance 974,737,999 (2,215,183,815)

Real estate finance (376,936,635) (1,471,336,576)

Car loan 15,553,078 74,436,139

Personal loan 8,356,910 (7,072,272)

Loan against deposit (614,794,002) (137,034,893)

Margin loan to portfolio investors 100,285,902 24,196,898

Short term finance (204,008,603) 268,417,250

Other assets (112,526,914) (700,146,640)

Term and other deposits (868,881,320) 872,613,598

Net drawdown of short term loan (650,000,000) (1,650,000,000)

Payable and accrued expenses 385,025,192 (4,637,842)

Deferred liability-employee gratuity 11,552,720 13,291,432

Portfolio investors' fund 177,481,554 (42,196,267)

Deferred tax liability (14,719,056) 274,581,949

Interest suspense account 17,860,899 84,234,382

(1,067,650,304) (4,443,250,762)

Net cash flows from/(used in) operating activities (822,182,679) (3,475,609,798)

B) Cash flows from investing activities

Purchase of fixed assets (8,360,615) (10,442,817)

Disposal of fixed assets 544,412 3,424,089

Net proceeds of investment in securities (2,077,891,150) 1,609,912,133

Net cash flows from/(used in) investing activities (2,085,707,353) 1,602,893,404

C) Cash flows from financing activities

Drawdown of term loans 832,080,502 692,656,051

Repayment of term loans (744,833,078) (767,754,823)

Dividend paid (19,403) (40,265)

Net cash flows from/(used in) financing activities 87,228,021 (75,139,037)

D) Net increase/(decrease) in cash and cash equivalents (A+ B + C) (2,820,662,011) (1,947,855,431)

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

F) Cash and cash equivalents at beginning of the year 15,099,981,046 16,235,614,541

G) Cash and cash equivalents at end of the period (D+E+F) 12,279,319,035 14,287,759,110

- -

Cash and cash equivalents at end of the period

Cash in hand (including foreign currencies) (Note-3.1) 487,879 442,931

Balance with Bangladesh Bank and its agent bank(s) (Note-3.2) 3,222,953,582 2,591,296,535

Balance with other banks and financial institutions (Note-4) 9,055,877,574 11,696,019,644

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

12,279,319,035 14,287,759,110

Net operating cash flow per share (Note-36) (2.18) (9.22)


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, 2020

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, 2020 3,770,507,800 1,260,585,930 2,509,921,870 1,000,000,000 46,500,000 5,430,052,634 14,017,568,234 3,199 14,017,571,433

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

Restated balance 3,770,507,800 1,260,585,930 2,509,921,870 1,000,000,000 46,500,000 5,430,052,634 14,017,568,234 3,199 14,017,571,433

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 2020 - - - - - 292,630,805 292,630,805 (25) 292,630,779

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

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

Balance at March 31, 2019 3,770,507,800 1,260,585,930 2,416,541,850 1,000,000,000 46,500,000 4,338,850,538 12,832,986,118 3,184 12,832,989,302



Consolidated Statement of Changes in Equity (Un-audited)


Attributable to equity holders of the Company

Particulars

8

Note 31.03.2020 31.12.2019

BDT BDT

PROPERTY AND ASSETS

Cash 3

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

Balance with Bangladesh Bank and its agent (including foreign currencies) 3.2 3,222,953,582 2,176,870,971

3,223,293,582 2,177,210,971

Balance with other banks and financial institutions 4

Inside Bangladesh 4(a) 8,517,110,229 12,143,631,740

Outside Bangladesh 4(b) - -

8,517,110,229 12,143,631,740

Money at call and short notice 5 - -

Investments 6

Government 2,495,664,149 956,582,294

Others 1,365,226,094 1,764,634,918

3,860,890,243 2,721,217,212

Loans and advances 7

Loans, cash credit, overdraft etc. 91,788,181,929 91,448,447,902

Bills purchased and discounted - -

91,788,181,929 91,448,447,902

Fixed assets including land, building, furniture and fixtures 8(c) 872,742,247 926,283,039

Other assets 9 5,323,492,676 5,238,018,539

Non-banking assets - -

Total Assets 113,585,710,907 114,654,809,403

LIABILITIES AND CAPITAL

Liabilities

Borrowings from other banks, financial institutions and agents 10 13,515,021,113 14,027,773,689

Deposits and other accounts 11

Current accounts and other accounts etc. - -

Bills payable - -

Savings bank deposits - -

Term deposits 75,668,815,708 77,008,419,045

Bearer certificate of deposits - -

Other deposits 2,510,281,253 2,490,149,327

78,179,096,961 79,498,568,372

Other liabilities 12 10,225,448,888 9,897,359,976

Total Liabilities 101,919,566,962 103,423,702,037

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 2,509,921,870 2,509,921,870

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

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

Retained earnings 3,078,628,345 2,643,591,766

Total Equity 11,666,143,945 11,231,107,366

Total Liabilities and Shareholders' equity 113,585,710,907 114,654,809,403


Balance Sheet (Un-audited) as at March 31, 2020

9

Note 31.03.2020 31.12.2019

BDT BDT

OFF-BALANCE SHEET ITEMS - -

Contingent liabilities 17.1

Acceptances and endorsements - -

Letters of guarantee 139,566,000 50,000,000

Irrevocable letters of credit - -

Bills for collection - -

Indemnity bond - -

Corporate guarantee 750,000,000 750,000,000

889,566,000 800,000,000

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 1,541,639,393 1,238,722,240

1,541,639,393 1,238,722,240

Total Off-Balance Sheet items including contingent liabilities 2,431,205,393 2,038,722,240

Net Assets Value (NAV) per share 35 30.94 29.79

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

Dhaka, May 14, 2020

Chairman Director



Company Secretary

Sd/-

Sd/-Sd/-

10

Note 31.03.2020 31.03.2019

BDT BDT

Interest income 19 3,246,697,173 2,970,637,402

Interest on deposits and borrowings etc. 20 (2,175,942,922) (1,992,456,669)

Net interest income 1,070,754,251 978,180,733

Investment income 21 (64,223,067) 19,169,995

Commission, exchange and brokerage 22 - 1,999,999

Other operating income 23 99,816,827 105,763,264

Total operating income 1,106,348,011 1,105,113,991

Salaries and allowances 24 292,745,261 275,363,064

Rent, taxes, insurance, electricity etc. 25 12,199,674 10,553,833

Legal expenses 26 1,783,975 3,007,043

Postage, stamp, telecommunication etc. 27 9,285,550 8,500,003

Stationery, printing, advertisements etc. 28 23,820,581 20,007,489

Managing Director's salary and benefits 29 3,520,000 3,400,000

Directors' fees 30 237,600 340,400

Auditors' fees 31 201,250 201,250

Charges on loan losses - -

Depreciation and repair of Company's assets 32 67,230,315 70,113,854

Other expenses 33 86,606,958 79,563,648

Total operating expenses 497,631,165 471,050,584

Profit before provisions 608,716,846 634,063,407

Provision for loans and investments 12.6(ii)

General provision (125,855) 19,076,072

Specific provision (35,288,860) 132,435,875

Provision for diminution in value of investments (42,531,423) (140,801,565)

Other provision - -

Total provision (77,946,138) 10,710,382

Total profit before taxation 686,662,984 623,353,025

Provision for taxation

Current tax expense 12.2 273,367,421 187,608,096

Deferred tax (income)/expense 9.4 (21,741,015) 25,927,072

251,626,406 213,535,168

Net profit after taxation 435,036,578 409,817,857

Retained surplus 435,036,578 409,817,857

Earnings Per Share (EPS) 34 1.15 1.09


Dhaka, May 14, 2020

IDLC Finance Limited Profit and Loss Account (Un-audited) for the period ended March 31, 2020

Chairman Director



Company Secretary

Sd/-

Sd/-Sd/-

11

31.03.2020 31.03.2019

BDT BDT

A) Cash flows from operating activities

Interest received 3,075,972,705 2,923,353,293

Interest paid (2,120,271,921) (1,647,542,440)

Dividend received 2,729,948 27,954,748

Fees and commission received - 1,999,999

Paid to employees and suppliers (436,353,316) (405,649,503)

Payment of income tax (156,848,078) (166,398,756)

Received from other operating activities (21,441,338) 108,026,692

343,788,000 841,744,032


Lease receivable 83,361,972 172,585,896

Long-term finance 974,737,999 (2,215,183,815)

Real estate finance (376,936,635) (1,471,336,576)

Car loan 15,553,078 74,436,139

Personal loan 8,356,910 (7,072,272)

Loan against deposit (614,794,002) (137,034,893)

Short term finance (204,008,603) 268,417,250

Other assets (86,820,018) (780,134,784)

Term and other deposits (1,319,471,411) 1,252,449,389

Net drawdown of short term loan (600,000,000) (1,400,000,000)

Payable and accrued expenses 240,128,375 354,024,652

Deferred liability-employee gratuity 9,561,880 9,771,056

Deferred tax liability (11,946,030) 218,109,788

Interest suspense account 17,860,899 84,234,382

(1,864,415,586) (3,576,733,788)

Net cash flows from/(used in) operating activities (1,520,627,587) (2,734,989,756)

B) Cash flows from investing activities

Purchase of fixed assets (7,910,715) (9,269,658)

Disposal of fixed assets 544,412 1,876,105

Net proceeds of investment in securities (1,139,673,031) 619,564,911

Net cash flows from/(used in) investing activities (1,147,039,334) 612,171,357

C) Cash flows from financing activities

Drawdown of term loans 832,080,502 692,656,051

Repayment of term loans (744,833,078) (767,754,823)

Dividend paid (19,403) (40,265)

Net cash flows from/(used in) financing activities 87,228,021 (75,139,037)

D) Net increase/(decrease) in cash and cash equivalents (A+B+C) (2,580,438,900) (2,197,957,436)

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

F) Cash and cash equivalents at beginning of the year 14,320,842,711 15,062,022,276

G) Cash and cash equivalents at end of the period (D+E+F) 11,740,403,811 12,864,064,840

- -

Cash and cash equivalents at end of the period

Cash in hand (including foreign currencies) (Note-3.1) 340,000 330,000

Balance with Bangladesh Bank and its agent bank(s) (Note-3.2) 3,222,953,582 2,591,296,535

Balance with other banks and financial institutions (Note-4 ) 8,517,110,229 10,272,438,305

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

11,740,403,811 12,864,064,840

Net operating cash flow per share (Note-36) (4.03) (7.25)


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, 2020

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, 2020 3,770,507,800 1,260,585,930 2,509,921,870 1,000,000,000 46,500,000 2,643,591,766 11,231,107,366

Changes in accounting policy - - - - - - -

Restated balance 3,770,507,800 1,260,585,930 2,509,921,870 1,000,000,000 46,500,000 2,643,591,766 11,231,107,366

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 2020 - - - - - 435,036,578 435,036,578

Appropriation to reserve - - - - - - -

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

Balance at March 31, 2019 3,770,507,800 1,260,585,930 2,416,541,850 1,000,000,000 46,500,000 1,624,596,378 10,118,731,958



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 period ended March 31, 2020

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 aims to facilitate 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-B. 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-B 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 and investment in

marketable securities which are 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-B along with financial impact where applicable.

Date of authorisation

The Board of directors has authorised this financial statements for public issue on May 14, 2020.

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, 2019, as they provide an update to previously

reported information.

15

2.6

2.7

2.8 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.

In our annual financial statement of 2019, we reflected the full year impact of adopting the newly introduced

IFRS 16: "Leases" but incorporated it at the year end. For the purpose of better comparative between the

financial statements and notes of as at and for the period end March 31, 2020 & March 31, 2019 and to reflect

the impact of IFRS 16, we have made some re-arrangements in the financial statements and notes of March 31,

2019.

Accounting policies and method of computations

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,

2019.

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

31.03.2020 31.12.2019 31.03.2020 31.12.2019

BDT BDT BDT BDT

3 Cash

3.1 Cash in hand (including foreign currencies)

In local currency 340,000 340,000 487,879 440,000

In foreign currency - - - -

340,000 340,000 487,879 440,000

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

In local currency 3,222,953,582 2,176,870,971 3,222,953,582 2,176,870,971

In foreign currency - - - -

3,222,953,582 2,176,870,971 3,222,953,582 2,176,870,971

3,223,293,582 2,177,210,971 3,223,441,461 2,177,310,971

4 Balance with other banks and financial institutions in Bangladesh

4(a) Inside Bangladesh:

Current deposits in local currency

Woori Bank limited 137,569 137,629 137,569 137,629

Bank Al- Falah Limited 57,420 9,070 57,420 9,070

One Bank Limited - - 761,780 66,239,237

Jamuna Bank Limited 6,320 6,320 6,320 6,320

The City Bank Limited (481,633,356) 32,181,853 (481,633,356) 32,181,853

National Bank Limited 644,731 527,247 644,731 527,247

Bank Asia Limited 6,797,424 29,044,981 6,797,424 29,044,981

State Bank of India 44,584 44,584 44,584 44,584

Commercial Bank of Ceylon PLC (1,076,277,695) 3,924,804 (1,073,300,658) 4,587,046

NCC Bank Limited 4,943,703 5,069,668 5,556,237 66,785,929

Citibank N.A 232,133,993 14,047,630 232,133,993 14,047,630

Standard Chartered Bank 904,476,013 (1,087,934,127) 969,893,351 (1,039,898,129)

Mutual Trust Bank Limited 31,613,771 2,742,716 31,613,771 2,742,716

Exim Bank Limited 1,624,441 2,710,698 1,624,441 2,710,698

Dutch Bangla Bank Limited 24,512,065 47,108,789 24,512,065 47,108,789

BRAC Bank Limited 5,963,805 627,069 8,958,058 1,295,529

Dhaka Bank Limited 10,550,933 4,794,329 10,550,933 4,794,329

United Commercial Bank Limited 6,980,500 8,557,226 6,980,500 8,557,226

NRB Bank Limited - - 193,477 193,477

Mercantile Bank Limited 670,903 1,938,830 670,903 1,938,830

bKash Limited 16,945 150 16,945 150

IDLC Investments Limited 5,566,203 2,484,482 - -

(321,169,728) (931,976,052) (253,779,512) (756,944,859)

Short-term deposit accounts

Prime Bank Limited 17,512,535 1,312,285 17,512,535 1,312,285

Dutch Bangla Bank Limited - - 1,252,374 3,847,669

The City Bank Limited 544,300,629 1,039,083,037 544,300,629 1,039,083,037

BRAC Bank Limited - - 1,586,496 3,481,117

Southeast Bank Limited 10,749,563 9,841,683 10,749,563 9,841,683

Citibank N.A. 88,823 62,333,109 88,823 62,333,109

Standard Chartered Bank (455,845,374) 203,412,145 (425,838,204) 203,673,837

Commercial Bank of Ceylon PLC 1,859,117 3,080,428 5,397,050 5,682,661

One Bank Limited 18,556,594 2,661,302,587 24,298,273 2,756,585,977

NCC Bank Limited - - 277,250,719 32,417,464

Exim Bank Limited 1,331,058,048 2,045,242,496 1,437,772,296 2,316,336,877

NRB Bank Limited 22 22 23 23

1,468,279,957 6,025,607,792 1,894,370,577 6,434,595,739

Fixed Deposits

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

South Bangla Agriculture & Commerce Bank Limited 70,000,000 70,000,000 70,000,000 70,000,000

ONE Bank Limited 1,400,000,000 900,000,000 1,400,000,000 900,000,000

Southeast Bank Limited - 250,000,000 - 250,000,000

Jamuna Bank Limited 400,000,000 1,000,000,000 400,000,000 1,000,000,000

Dhaka Bank Limited 3,000,000,000 2,500,000,000 3,000,000,000 2,500,000,000

NRB Global Bank Limited 100,000,000 - 100,000,000 -

Standard Bank Limited 1,150,000,000 780,000,000 1,150,000,000 780,000,000

Export Import Bank of Bangladesh Limited 500,000,000 500,000,000 500,000,000 650,000,000

IPDC Finance Limited - - 10,786,509 10,519,195

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

Standard Chartered Bank - - 32,000,000 32,000,000

Modhumoti Bank Limited - 300,000,000 - 300,000,000

7,370,000,000 7,050,000,000 7,415,286,509 7,245,019,195

8,517,110,229 12,143,631,740 9,055,877,574 12,922,670,075

4(b) Outside Bangladesh - - - -

Total balance 8,517,110,229 12,143,631,740 9,055,877,574 12,922,670,075

5 Money at call and short notice - - - -

- - - -

IDLC Finance Limited IDLC Group

17

31.03.2020 31.12.2019 31.03.2020 31.12.2019

BDT BDT BDT BDT

6 Investments

Government securities

Treasury bill - - - -

National Investment bonds - - - -

Bangladesh Bank bill - - - -

Government notes/bonds 2,495,664,149 956,582,294 4,043,422,223 1,380,723,983

Prize bonds - - - -

Others - - - -

2,495,664,149 956,582,294 4,043,422,223 1,380,723,983

Other investments

Investment in non marketable ordinary shares (Note 6.1) 7,864,000 7,864,000 167,863,952 167,863,952

Investment in preference shares (Note 6.2) 111,958,000 83,992,500 111,958,000 83,992,500

Investment in debenture and bonds (Note 6.3) 300,000,000 300,000,000 585,319,933 603,001,618

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) 682,073,962 1,109,448,286 3,782,265,133 4,377,356,038

Investment in open end mutual fund (Note 6.6) 213,330,132 213,330,132 263,330,132 263,330,132

Other investments - - - -

Gold etc. - - - -

1,365,226,094 1,764,634,918 4,969,737,150 5,554,544,240

3,860,890,243 2,721,217,212 9,013,159,373 6,935,268,223

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

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

* Previously the name was Dan & Bradstreet Rating Agency Bangladesh Limited 7,864,000 7,864,000 167,863,952 167,863,952

6.2 Investment in preference shares

111,958,000 83,992,500 111,958,000 83,992,500

111,958,000 83,992,500 111,958,000 83,992,500

6.3 Investment in bonds

Mercantile Bank Limited 120,000,000 120,000,000 120,000,000 120,000,000

United Commercial Bank Limited 180,000,000 180,000,000 180,000,000 180,000,000

Paramount Textile Limited - - 110,124,188 119,647,504

Tarasima Apparels Limited - - 71,688,263 82,085,418

Impress-Newtex Composite Textile Limited - - 103,507,482 101,268,696

Total 300,000,000 300,000,000 585,319,933 603,001,618

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) 672,073,962 1,109,448,286 3,713,896,701 4,344,053,358

Investment in Initial Public Offering (Note 6.5.2) 10,000,000 - 39,987,300 -

Investment in DPM PLS Scheme - - 28,381,132 33,302,680

682,073,962 1,109,448,286 3,782,265,133 4,377,356,038

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 195,847,280 173,869,858 267,372,984 233,110,110

Banks - - 346,809,965 171,174,493

Textiles - - 35,116 48,465

Pharmaceuticals & Chemicals 35,052,648 37,271,190 749,794,653 619,743,629

Fuel & Power 124,962,815 115,280,102 474,393,537 369,064,126

Financial Institutions 9,999,990 9,999,990 15,007,343 14,631,090

Telecom 129,883,474 86,752,697 572,487,922 371,935,181

Food & Allied 13,798,125 12,706,400 65,442,171 58,299,550

Cement 27,145,722 25,138,875 608,208,469 398,965,603

Engineering & Others 135,383,909 95,783,682 614,344,542 464,086,265

672,073,962 556,802,794 3,713,896,701 2,701,058,514

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, 2020 there was BDT 1,012.84 million gross loss on consolidated investment in marketable securities and BDT

115.27 million gross loss on investment by IDLC Finance Limited in marketable securities.


Chaldal Limited


18

31.03.2020 31.12.2019 31.03.2020 31.12.2019

BDT BDT BDT BDT

6.5.2 Investment in Initial Public Offering 10,000,000 - 39,987,300 -

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 - - 50,000,000 50,000,000 213,330,132 213,330,132 263,330,132 263,330,132

7 Loans and advances

Inside Bangladesh:

Lease receivable (Note 7.1) 3,413,024,098 3,496,386,070 3,413,024,098 3,496,386,070

Long-term finance (Note 7.2) 54,578,056,112 55,552,794,111 54,578,056,112 55,552,794,111

Real estate finance (Note 7.3) 28,539,579,704 28,162,643,069 28,539,579,704 28,162,643,069

Car loans (Note 7.4) 1,235,161,426 1,250,714,504 1,235,161,426 1,250,714,504

Personal loan (Note 7.5) 136,594,847 144,951,757 136,594,847 144,951,757

Short term finance (Note 7.6) 938,726,952 734,718,349 938,726,952 734,718,349

Loan to subsidiaries (Note 7.7) - - - -

Loan against deposit (LAD) 1,325,153,872 710,359,870 1,325,153,872 710,359,870

Margin loan to portfolio investors (Note 7.8) - - 797,243,527 897,529,429

Interest receivable (Note-7.9) 1,621,884,919 1,395,880,173 1,621,884,919 1,395,880,173

91,788,181,929 91,448,447,902 92,585,425,456 92,345,977,331

Outside Bangladesh - - - -

91,788,181,929 91,448,447,902 92,585,425,456 92,345,977,331

7.1 Lease receivable

Balance at January 1 3,496,386,070 4,276,868,347 3,496,386,070 4,276,868,347

Add: Addition during the period/year 391,357,412 795,923,403 391,357,412 795,923,403

3,887,743,482 5,072,791,750 3,887,743,482 5,072,791,750

Less: Realisation during the period/year 474,719,384 1,576,405,680 474,719,384 1,576,405,680

Balance at period/year end 3,413,024,098 3,496,386,070 3,413,024,098 3,496,386,070

7.2 Long-term finance


Add: Disbursement during the period/year 9,088,959,134 33,137,032,052 9,088,959,134 33,137,032,052

64,641,753,245 81,777,248,280 64,641,753,245 81,777,248,280

Less: Realisation during the period/year 10,063,697,133 26,224,454,169 10,063,697,133 26,224,454,169


7.3 Real estate finance


Add : Disbursement during the period/year 1,956,952,530 7,691,630,446 1,956,952,530 7,691,630,446

30,119,595,599 32,823,022,315 30,119,595,599 32,823,022,315

Less : Realisation during the period/year 1,580,015,895 4,660,379,246 1,580,015,895 4,660,379,246


7.4 Car loans


Add : Disbursement during the period/year 154,158,731 474,684,476 154,158,731 474,684,476

1,404,873,235 1,884,487,053 1,404,873,235 1,884,487,053

Less : Realisation during the period/year 169,711,809 633,772,549 169,711,809 633,772,549


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) invested BDT 50.00 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.

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.


19

7.5 Personal loan

Balance at January 1 144,951,757 147,936,414 144,951,757 147,936,414

Add : Disbursement during the period/year 8,401,588 60,440,509 8,401,588 60,440,509

153,353,345 208,376,923 153,353,345 208,376,923

Less : Realisation during the period/year 16,758,498 63,425,166 16,758,498 63,425,166

Balance at period/year end 136,594,847 144,951,757 136,594,847 144,951,757

31.03.2020 31.12.2019 31.03.2020 31.12.2019

BDT BDT BDT BDT

7.6 Short term finance

Factoring of account receivable 938,726,952 734,718,349 938,726,952 734,718,349

7.7 Loan to Subsidiaries

Balance at January 1 - - - -

Add : Disbursement during the period/year 558,100,000 1,527,300,000 - -

558,100,000 1,527,300,000 - -

Less : Realisation during the period/year 558,100,000 1,527,300,000 - -

Balance at period/year end - - - -

7.7.1 Loan to IDLC Investments Limited


Add : Disbursement during the period/year 413,100,000 522,300,000 - -

413,100,000 522,300,000 - -

Less : Realisation during the period/year 413,100,000 522,300,000 - -


7.7.2 Loan to IDLC Securities Limited


Add : Disbursement during the period/year 145,000,000 1,005,000,000 - -

145,000,000 1,005,000,000 - -

Less : Realisation during the period/year 145,000,000 1,005,000,000 - -


7.8 Margin loan to portfolio investors

Balance at January 1 - - 897,529,429 1,524,672,544

Add : Disbursement during the period/year - - 343,593,722 1,627,124,400

- - 1,241,123,151 3,151,796,944

Less : Realisation during the period/year - - 443,879,624 2,254,267,515

Balance at period/year end - - 797,243,527 897,529,429

7.9 Interest Receivables

Lease receivable 94,287,573 92,247,707 94,287,573 92,247,707

Long-term finance 1,007,426,799 848,726,785 1,007,426,799 848,726,785

Real estate finance 449,214,175 385,815,354 449,214,175 385,815,354

Car loan 11,221,130 10,284,761 11,221,130 10,284,761

Personal loan 1,699,463 1,690,144 1,699,463 1,690,144

Loan against deposit (LAD) 55,479,141 45,354,825 55,479,141 45,354,825

Short term finance 2,556,638 11,760,597 2,556,638 11,760,597

1,621,884,919 1,395,880,173 1,621,884,919 1,395,880,173


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.

20

31.03.2020 31.12.2019 31.03.2020 31.12.2019

BDT BDT BDT BDT

8 Fixed assets including land, building, furniture and fixtures

a. Cost

Balance at 01 January 1,924,185,117 1,302,436,541 2,296,151,837 1,508,163,591

Addition during the period/year end 7,910,715 683,396,137 8,360,615 875,939,316

1,932,095,832 1,985,832,678 2,304,512,452 2,384,102,907

Disposal/Adjustments during the period/year end (11,262,764) (61,647,561) (11,292,764) (87,951,070)


b. Accumulated depreciation

Balance at 01 January 997,902,078 803,301,418 1,176,175,444 956,137,645

Charged during the period/year end 61,277,849 254,776,553 73,856,477 302,983,900

1,059,179,927 1,058,077,971 1,250,031,921 1,259,121,545

Disposal/Adjustments during the period/year end (11,089,106) (60,175,893) (11,119,091) (82,946,101)

Balance at period/year end 1,048,090,821 997,902,078 1,238,912,830 1,176,175,444

c. Written down value (a-b) 872,742,247 926,283,039 1,054,306,858 1,119,976,393

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) 3,999,999,790 3,999,999,790 - -

Accounts receivable (Note - 9.2) 341,729,885 323,747,461 925,283,534 845,320,143

Advances, deposits and prepayments (Note - 9.3) 748,040,347 690,343,620 763,465,318 704,987,857

Deferred tax asset (Note - 9.4) 233,722,654 223,927,668 343,830,437 318,897,693

Investment in stock exchanges (Note - 9.5) - - 14,869,750 14,869,750

5,323,492,676 5,238,018,539 2,047,449,039 1,884,075,443

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) 149,999,990 149,999,990 -

3,999,999,790 3,999,999,790 - -

9.1.1

9.1.2

9.1.3

9.2 Accounts receivable

Interest receivable (Note - 9.2.1) 155,883,397 157,229,278 211,465,973 160,619,291

Other receivables (Note - 9.2.2) 185,846,489 166,518,183 713,817,561 684,700,852

341,729,885 323,747,461 925,283,534 845,320,143

9.3 Advances, deposits and prepayments

Deposits and prepayments 75,776,886 21,675,080 77,009,649 22,902,843

Advance against expenses 672,263,461 668,668,540 686,455,669 682,085,014

748,040,347 690,343,620 763,465,318 704,987,857

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

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.

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.


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.

21

9.4 Deferred tax

Deferred tax liability is arrived at as follows:

Carrying amount at (Taxable)/deductible Carrying amount at (Taxable)/deductible

balance sheet Tax base temporary difference balance sheet Tax base temporary difference

BDT BDT BDT BDT BDT BDT

Assets (excluding land):

459,482,337 - (459,482,337) - - -

- - - 84,846,398 - (84,846,398)

- - - 31,340,303 - (31,340,303)

- - - 28,709,886 12,265,537 (16,444,349)

Total 459,482,337 - (459,482,337) 144,896,587 12,265,537 (132,631,050)


491,338,416 - (491,338,416) - - -

- - - 89,634,883 - (89,634,883)

- - - 32,702,924 - (32,702,924)

- - - 30,788,338 12,669,495 (18,118,843)

Total 491,338,416 - (491,338,416) 153,126,145 12,669,495 (140,456,650)

Applicable tax rate for IDLC FL 37.50%

Applicable tax rate for IDLC SL 35.00%

Applicable tax rate for IDLC IL 37.50%

Applicable tax rate for IDLC AML 35.00%

Deferred tax liability as on March 31, 2020 (172,305,876) (47,204,375)

Deferred tax liability as on December 31, 2019 (184,251,906) (49,977,401)

Deferred tax (expenses)/ income accounted for during the period 11,946,030 2,773,026

Deferred tax asset is arrived at as follows:





386,301,438 503,056,280 116,754,842 - - -

* (3,007,771) 3,007,771 -

- - - 23,182,206 44,650,553 21,468,347

- 8,923,458 18,383,174 9,459,716

Total 383,293,667 503,056,280 119,762,613 32,105,664 63,033,727 30,928,063

Liabilities:

- - - 43,287,945 - 43,287,945

- - - 20,447,779 - 20,447,779

Total - - - 63,735,724 - 63,735,724

449,743,260 - 449,743,260 - - -

- - - 85,986,480 - 85,986,480

- - - 32,351,706 - 32,351,706

- - - 15,917,110 - 15,917,110

201,579,514 - 201,579,514 - - -

- - - 35,911,524 - 35,911,524

- - - 232,901,266 - 232,901,266

- - - 15,483,451 - 15,483,451

Total 651,322,774 - 651,322,774 418,551,537 - 418,551,537

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".

2020

Fixed assets net of depreciation as on

March 31, 2020 (IDLC FL)-ROU

IDLC Finance Limited Subsidiaries



March 31, 2020 (IDLC SL)-ROU


March 31, 2020 (IDLC IL)-ROU

Lease Liability-Rent (IDLC FL)

Lease Liability-Rent (IDLC SL)

Lease Liability-Rent (IDLC IL)

Lease Liability-Rent (IDLC AML)

Loss on sale of secondary shares

(IDLC FL)


March 31, 2020 (IDLC AML) & ROU

Fixed assets net of depreciation as

on March 31, 2020 (IDLC FL)

Difference for vehicle


on March 31, 2020 (IDLC SL)

Employee gratuity as on March 31,

2020 (IDLC SL)


(IDLC IL)


(IDLC SL)

2019

Employee gratuity as on March 31,

2020 (IDLC IL)

2020


December 31, 2019 (IDLC FL)-ROU


December 31, 2019 (IDLC SL)-ROU


December 31, 2019 (IDLC IL)-ROU


December 31, 2019 (IDLC AML) &

ROU


on March 31, 2020 (IDLC IL)


(IDLC AML)

22





407,986,153 513,376,510 105,390,357 - - -

* (4,786,166) - 4,786,166 - - -

- - - 25,569,211 45,900,610 20,331,399

- - - 10,060,658 19,002,711 8,942,053

Total 403,199,987 513,376,510 110,176,523 35,629,869 64,903,321 29,273,452

Liabilities:

- - - 41,747,105 - 41,747,105

- - - 19,997,779 - 19,997,779

Total - - - 61,744,884 - 61,744,884

464,684,567 - 464,684,567 - - -

- - - 88,730,692 - 88,730,692

- - - 32,898,804 - 32,898,804

- - - 16,518,286 - 16,518,286

83,547,594 - 83,547,594 - - -

- - - 8,781,629 - 8,781,629

- - - 123,377,545 123,377,545

Total 548,232,161 - 548,232,161 270,306,956 - 270,306,956

Applicable tax rate for IDLC Finance Limited 37.50% -

Applicable tax rate for IDLC Securities Limited - 35.00%

Applicable tax rate for IDLC Investments Limited - 37.50%

Applicable tax rate for IDLC Asset Management Limited - 35.00%

Applicable tax rate for loss on sale of secondary shares 10.00% 10.00%

Deferred tax asset as on March 31, 2020 233,722,654 110,107,783

Deferred tax asset as on December 31, 2019 223,927,668 94,970,025

Deferred tax (expenses)/ income accounted for during the period 9,794,986 15,137,758

Net deferred tax (expense)/income 21,741,015 17,910,784

31.03.2020 31.12.2019 31.03.2020 31.12.2019

BDT BDT BDT BDT

9.5 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.


2019


on December 31, 2019 (IDLC FL)


(IDLC FL)


(IDLC SL)

Employee gratuity as on December

31, 2019 (IDLC SL)


on December 31, 2019 (IDLC SL)

Difference for vehicle

* 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.

Dhaka Stock Exchange Limited

Chittagong Stock Exchange Limited

IDLC GroupIDLC Finance Limited

2019: Consolidated deferred tax income was BDT 17.86 million, which includes BDT 8.95 million for deferred tax income of IDLC Finance Limited, BDT 3.64 million for

deferred tax income of IDLC Securities Limited, BDT 5.30 million for deferred tax income of IDLC Investments Limited and BDT 0.02 million for deferred tax expense of

IDLC Asset Management Limited.

2020: Consolidated deferred tax income was BDT 39.65 million, which includes BDT 21.74 million for deferred tax income of IDLC Finance Limited, BDT 4.37 million for

deferred tax income of IDLC Securities Limited, BDT 11.62 million for deferred tax income of IDLC Investments Limited and BDT 1.92 million for deferred tax income of

IDLC Asset Management Limited.


(IDLC IL)

Lease Liability-Rent (IDLC IL)

Lease Liability-Rent (IDLC AML)

Employee gratuity as on December

31, 2019 (IDLC IL)

Lease Liability-Rent (IDLC FL)

Lease Liability-Rent (IDLC SL)


on December 31, 2019 (IDLC IL)

23

31.03.2020 31.12.2019 31.03.2020 31.12.2019

BDT BDT BDT BDT

10 Borrowings from other banks, financial institutions

Inside Bangladesh (Note- 10.1) 13,515,021,113 14,027,773,689 13,665,021,113 14,227,773,689

Outside Bangladesh - - - -

13,515,021,113 14,027,773,689 13,665,021,113 14,227,773,689

10.1 Inside Bangladesh

Secured Loans

Secured Long-term loans

Dutch Bangla Bank Limited 750,000,000 833,333,333 750,000,000 833,333,333

Woori Bank 649,166,667 731,666,667 649,166,667 731,666,667

1,399,166,667 1,565,000,000 1,399,166,667 1,565,000,000

Secured Short Term Loan

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

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

Standard Chartered Bank 1,700,000,000 1,700,000,000 1,850,000,000 1,900,000,000

Commercial Bank of Ceylon Plc 535,000,000 535,000,000 535,000,000 535,000,000

Total secured short term loan 2,995,000,000 2,995,000,000 3,145,000,000 3,195,000,000

Total secured loans 4,394,166,667 4,560,000,000 4,544,166,667 4,760,000,000

Unsecured loans

Zero Coupon Bond

A. K. Khan & Company Limited 82,960,423 127,261,086 82,960,423 127,261,086

Universal Jeans Limited 65,841,605 101,000,862 65,841,605 101,000,862

Sk. Akijuddin Limited 1,874,357,546 1,874,357,546 1,874,357,546 1,874,357,546

Grameen Telecom Trust 40,821,795 62,620,534 40,821,795 62,620,534

Square Pharmaceuticals Limited 32,920,803 50,500,431 32,920,803 50,500,431

Pragati Life Insurance Limited 6,584,161 10,100,086 6,584,161 10,100,086

BETS Consulting Services Limited 6,584,161 10,100,086 6,584,161 10,100,086

Dr. Abdus Shabur 1,316,832 2,020,017 1,316,832 2,020,017

Bangla Telecom Limited 10,544,206 14,343,795 10,544,206 14,343,795

Bangladesh Infrastructure Finance Fund Limited 105,442,055 143,437,946 105,442,055 143,437,946

Delsey Cotton Spinning Mills Ltd. 21,088,411 28,687,589 21,088,411 28,687,589

2,248,461,998 2,424,429,978 2,248,461,998 2,424,429,978

Unsecured Long-term loans

Kreditanstalt fÜr Wiederaufbau (KfW) 60,863,409 60,863,409 60,863,409 60,863,409

Bangladesh Bank ( JICA-FDI Fund) 197,222,222 147,222,222 197,222,222 147,222,222

Bangladesh Bank (BB Fund-Small Enterprise Refinancing Program) 9,990,972 12,465,278 9,990,972 12,465,278

Bangladesh Bank (Women-Small Enterprise Refinancing Program) 1,877,821,871 1,308,438,094 1,877,821,871 1,308,438,094

Bangladesh Bank (New Entrepreneur Refinancing Scheme) 4,067,028 4,915,080 4,067,028 4,915,080

Bangladesh Bank (Home Loan Refinancing Program) 443,903,522 453,643,857 443,903,522 453,643,857

Bangladesh Bank (Agro Loan Refinancing Program) 265,845,000 350,366,390 265,845,000 350,366,390

Bangladesh Bank (JICA Refinancing Program) 407,088,113 420,577,188 407,088,113 420,577,188

SME Foundation 100,135,000 100,135,000 100,135,000 100,135,000

Investment Promotion & Financing Facilities (IPFF) 512,854,344 512,854,343 512,854,344 512,854,343

Bangladesh Bank Solar Bio Gas & ETP Scheme 427,697,618 441,491,110 427,697,618 441,491,110

Bangladesh Bank Milk Production Scheme 3,000,000 3,000,000 3,000,000 3,000,000

Bangladesh Bank (SMEDP 2) 932,822,469 957,212,469 932,822,469 957,212,469

Saudi Bangladesh Industrial & Agricultural Investment Company Limited 459,080,880 500,159,271 459,080,880 500,159,271

5,702,392,448 5,273,343,711 5,702,392,448 5,273,343,711

Total unsecured long-term loan 7,950,854,446 7,697,773,689 7,950,854,446 7,697,773,689

Unsecured Short Term Loans

Short-term loans

Trust Bank Limited - 800,000,000 - 800,000,000

Meridian Finance & Investment Limited 150,000,000 150,000,000 150,000,000 150,000,000

Bank Asia Limited 750,000,000 - 750,000,000 -

Standard Bank Limited 200,000,000 - 200,000,000 -

South Bangla Agriculture and Commerce Bank Limited 70,000,000 100,000,000 70,000,000 100,000,000

1,170,000,000 1,050,000,000 1,170,000,000 1,050,000,000

Call Loans

Sonali Bank Limited - 280,000,000 - 280,000,000

United Commercial Bank Limited - 290,000,000 - 290,000,000

Bangladesh Development Bank Limited - 150,000,000 - 150,000,000

- 720,000,000 - 720,000,000

Total unsecured short-term loans 1,170,000,000 1,770,000,000 1,170,000,000 1,770,000,000

Total Borrowings from other banks, financial institutions & agents 13,515,021,113 14,027,773,689 13,665,021,113 14,227,773,689


24

31.03.2020 31.12.2019 31.03.2020 31.12.2019

BDT BDT BDT BDT

11 Deposits and other accounts

Current accounts and other accounts etc - - - -

Bills payable - - - -

Savings bank deposits - - - -

Term deposits (Note- 11.1) 75,668,815,708 77,008,419,045 74,526,420,064 75,415,433,310

Bearer certificate of deposits - - - -

Refundable deposits (Note- 11.2) 2,510,281,253 2,490,149,327 2,510,281,253 2,490,149,327

78,179,096,961 79,498,568,372 77,036,701,317 77,905,582,637

11.1 Term deposits


Add: Deposits received during the period/year 11,119,660,667 38,331,088,741 11,119,660,667 38,331,088,741

88,128,079,712 109,669,160,706 86,535,093,977 108,588,790,248

Less: Matured/encashed during the period/year 12,459,264,004 32,660,741,661 12,459,264,004 32,660,741,661

Inter-company deposit - - (450,590,091) 512,615,277


11.2 Refundable deposits

Deposits against loan and lease rental 188,411,774 207,395,872 188,411,774 207,395,872

Deposits against financing as per term of agreements (Security deposits) 2,321,869,479 2,282,753,455 2,321,869,479 2,282,753,455

2,510,281,253 2,490,149,327 2,510,281,253 2,490,149,327

12 Other liabilities

Payable and accrued expenses (Note- 12.1) 5,724,301,418 5,441,179,928 6,546,730,224 6,136,622,701

Provision for income tax (Note- 12.2) 2,193,242,600 2,076,723,257 2,441,832,064 2,294,581,634

Deferred liability-employee gratuity (Note- 12.3) 9,561,880 - 73,297,604 61,744,884

Portfolio investors' fund (Note- 12.4) - - 409,023,101 231,541,547

Interest suspense account (Note- 12.5) 526,737,493 508,876,594 526,737,493 508,876,594

Provision for doubtful accounts and future losses (Note- 12.6 (i)) 1,574,434,180 1,661,443,447 1,725,738,941 1,741,869,167

Unpaid dividend 24,865,441 24,884,844 24,865,441 24,884,844

Deferred tax liability (Note-9.4) 172,305,876 184,251,906 219,510,251 234,229,307

10,225,448,888 9,897,359,976 11,967,735,119 11,234,350,677

12.1 Payable and accrued expenses

Receipt against leases 596,396,808 605,534,735 596,396,808 605,534,735

Liabilities for expenses 3,922,981,868 3,976,943,532 4,605,306,573 4,531,488,158

Lease Liability 449,743,260 464,684,567 583,998,556 602,832,349

Liabilities for other finance 755,179,482 394,017,094 761,028,287 396,767,459

5,724,301,418 5,441,179,928 6,546,730,224 6,136,622,701

12.2 Provision for income tax

Provision


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

9,442,368,881 8,565,194,891 10,969,747,130 9,890,705,186

Add: Provision made during the period/year 273,367,421 877,173,990 323,360,487 1,079,041,944

9,715,736,302 9,442,368,881 11,293,107,617 10,969,747,130

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


Advance tax


Add: Payment made during the period/year

Under sections 64 and 74 of ITO, 1984 120,000,000 629,123,093 120,030,000 689,263,312

Deduction at source 36,798,078 192,583,832 56,030,057 351,240,070

Others 50,000 1,175,675 50,000 1,175,675

156,848,078 822,882,600 176,110,057 1,041,679,057

7,522,493,702 7,365,645,624 8,851,275,553 8,675,165,496

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

7,522,493,702 7,365,645,624 8,851,275,553 8,675,165,496

Net balance at period/year end 2,193,242,600 2,076,723,257 2,441,832,064 2,294,581,634


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 period/year end 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.

IDLC Group

25

31.03.2020 31.12.2019 31.03.2020 31.12.2019

BDT BDT BDT BDT

12.3 Deferred Liability-employee gratuity

Balance at January 1 - - 61,744,884 46,511,525

Add: Addition during the period/year 9,561,880 11,552,720 16,627,438

9,561,880 - 73,297,604 63,138,963

Less: Payment during the period/year - - - 1,394,079

Balance at period/year end 9,561,880 - 73,297,604 61,744,884

12.4 Portfolio investors' fund

Balance at January 1 - - 231,541,547 599,996,551

Add: Deposit and share sold by clients - - 1,415,160,421 4,172,359,163

- - 1,646,701,968 4,772,355,714

Less: Purchase of share and deposit withdraw by clients - - 1,237,678,867 4,540,814,167

Balance at period/year end - - 409,023,101 231,541,547

12.5 Interest suspense accounts

On lease finance 61,728,881 61,167,997 61,728,881 61,167,997

On real-estate finance 146,976,961 141,134,442 146,976,961 141,134,442

On term finance 315,524,146 302,065,923 315,524,146 302,065,923

On car loan 1,527,956 1,862,446 1,527,956 1,862,446

On personal loan 883,045 874,633 883,045 874,633

On short term finance 96,504 1,771,153 96,504 1,771,153

526,737,493 508,876,594 526,737,493 508,876,594

12.6 Provision for loans and advances/investments

12.6(i) Balance at January 1 1,661,443,447 1,248,174,229 1,741,869,167 1,318,975,417

Provision required for the period/year end 23,129,783 459,152,995 100,541,367 483,136,950

Provision released during the period/year (101,075,921) (45,883,777) (107,608,464) (60,243,199)

Provision charged for the period/year end (Note- 12.6 (ii)) (77,946,138) 413,269,218 (7,067,097) 422,893,751

Write off during the period/year 9,063,129 - 9,063,129 -


31.03.2020 31.03.2019 31.03.2020 31.03.2019

BDT BDT BDT BDT

12.6(ii) Provision charged for the period

General provision (125,855) 19,076,072 544,158 18,401,654

Specific provision (35,288,860) 132,435,875 (35,288,860) 132,435,875

Provision for diminutions in value of investments (42,531,423) (140,801,565) 27,677,605 (146,516,895)

Other Provisions - - - -

(77,946,138) 10,710,382 (7,067,097) 4,320,634

Reason for changes in provision charged for the period:

31.03.2020 31.12.2019 31.03.2020 31.12.2019

BDT BDT BDT BDT

12.6(iii) Product wise break up of provision

Lease 114,280,465 120,705,409 114,280,465 120,705,409

Long- term finance 884,880,196 925,331,153 884,880,196 925,331,153


Car loan 17,216,394 18,079,010 17,216,394 18,079,010

Investment in shares 111,770,304 154,301,727 252,044,194 224,366,589

Personal Loan 5,800,924 5,970,843 5,800,924 5,970,843


Loan against Deposit 13,806,330 7,557,147 13,806,330 7,557,147

Other Assets 12,182,361 12,182,361 16,415,993 14,561,119

Margin loan - - 6,797,240 7,982,100

1,574,434,180 1,661,443,447 1,725,738,941 1,741,869,167



Incremental provision of IDLC Finance Limited for the period ended March 31, 2020 was BDT (77.95) million, which was BDT 10.71 million in the same period of previous

year. As per the above breakdown of incremental provision for loans and investments, the main reason behind the sharp decline in specific provision charged during the period

has been the adaptation of the DFIM circular no: 01, dated March 24, 2020 regarding classification of loans & advances, while the drop in provision for dimunition in value of

investments is due to the worsening condition of capital market compared to the same period of previous year.

Incremental provision of IDLC Group for the period ended March 31, 2020 was BDT (7.07) million, which was BDT 4.32 million in the same period of previous year. As per

the above breakdown of incremental provision for loans and investments, the main reason behind the sharp decline in specific provision charged during the period has been the

adaptation of the DFIM circular no 01, dated March 24, 2020 regarding classification, while the rise in provision for dimunition in value of investments is due to the worsening

condition of capital market compared to the same period of previous year.

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:


26

31.03.2020 31.12.2019 31.03.2020 31.12.2019

BDT BDT BDT BDT

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 12, 2020 comprises the following:

Composition of shareholding:

12.03.2020 31.12.2019

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) 6.42 24,198,448 241,984,480 225,518,710

Bangladesh Fund 1.37 5,169,409 51,694,090 51,594,090

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

Other Institutions 11.76 44,346,289 443,462,890 450,880,020

Sub-Total 20.55 77,484,652 774,846,520 765,697,880

Individuals:

General Public (Individuals) 10.56 39,815,427 398,154,270 406,635,180

Sub-Total 10.56 39,815,427 398,154,270 406,635,180

3 FOREIGN

Institutions & Individuals 12.23 46,108,124 461,081,240 461,748,970

12.23 46,108,124 461,081,240 461,748,970

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

31.03.2020 31.12.2019 31.03.2020 31.12.2019

BDT BDT BDT BDT

14 Share premium


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


15 Statutory reserves


Add: Transferred on appropriation of profit - 93,380,020 - 93,380,020



* Due to COVID-19 outbreak, we are unable to get the shareholding composition information as at March 31, 2020 from Central Depository Bangladesh

Limited's database. We have the latest available information as at March 12, 2020 which are disclosed here.


27

16 General reserves


Add: Transferred on appropriation of profit - - - -


31.03.2020 31.12.2019 31.03.2020 31.12.2019

BDT BDT BDT BDT

17 Business commitments and contingencies

17.1 Contingent liabilities

Acceptances and endorsements - - - -

Letters of guarantee 139,566,000 50,000,000 139,566,000 50,000,000

Irrevocable letters of credit - - - -

Bills for collection - - - -

Indemnity bond - - - -

Corporate guarantee 750,000,000 750,000,000 750,000,000 750,000,000

889,566,000 800,000,000 889,566,000 800,000,000

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 467,194,000 289,816,587 467,194,000 289,816,587

Real estate finance commitments outstanding at period/year end 1,074,445,393 948,905,653 1,074,445,393 948,905,653

Car loan commitments outstanding at period/year end - - - -

Personal loan commitments outstanding at period/year end - - - -

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

1,541,639,393 1,238,722,240 1,541,639,393 1,238,722,240

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:


28

31.03.2020 31.03.2019 31.03.2020 31.03.2019

BDT BDT BDT BDT

18 Income statement

Income

Interest, discount and similar income (Note-18.1) 3,179,744,158 2,961,852,649 3,095,856,841 3,062,319,401

Dividend income (Note-21) 2,729,948 27,954,748 23,056,564 44,510,401

Fees, commission and brokerage (Note-22) - 1,999,999 98,414,683 129,612,469

Other operating income (Note-23) 99,816,827 105,763,264 100,753,662 107,758,690

3,282,290,933 3,097,570,660 3,318,081,750 3,344,200,961

Expenses

Interest on deposits and borrowings etc. (Note-20) 2,175,942,922 1,992,456,669 2,148,874,733 1,969,390,524

Administrative expenses (Note-18.2) 349,746,357 326,085,855 421,713,856 410,322,961

Other expenses (Note-33) 86,606,958 79,563,648 104,364,313 90,422,654

Depreciation on assets (Note-32) 61,277,849 65,401,081 73,856,477 76,259,301

2,673,574,087 2,463,507,253 2,748,809,380 2,546,395,440

Operating Income 608,716,846 634,063,407 569,272,370 797,805,521

18.1 Interest, discount and similar income

Interest income (Note -19) 3,246,697,173 2,970,637,402 3,286,233,781 3,036,432,436

Gain on sale of marketable securities & DSE share (Note - 21) (118,036,921) (20,324,753) (270,006,591) 6,546,375

Income from investment in bonds (Note - 21) 51,083,906 11,540,000 79,629,651 19,340,590

3,179,744,158 2,961,852,649 3,095,856,841 3,062,319,401

18.2 Administrative expenses

Salary and allowances (Note-24) 292,745,261 275,363,064 355,400,362 343,682,132

Rent, taxes, insurance, electricity, etc. (Note-25) 12,199,674 10,553,833 14,911,047 14,381,708

Legal expenses (Note-26) 1,783,975 3,007,043 2,709,121 3,885,987

Postage, stamp, telecommunication, etc. (Note-27) 9,285,550 8,500,003 11,204,567 10,457,593

Stationery, printing, advertisement, etc. (Note-28) 23,820,581 20,007,489 25,997,563 27,576,368

Managing Director's salary and fees (Note-29) 3,520,000 3,400,000 3,520,000 3,400,000

Directors' fees (Note-30) 237,600 340,400 394,049 450,576

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

Depreciation & repair of Company's assets (Note-32) 5,952,466 4,712,773 7,288,397 6,199,846

349,746,357 326,085,855 421,713,856 410,322,961

19 Interest income

This represents interest income from the following products:

Lease finance 111,470,198 121,543,540 111,470,198 121,543,540


Term finance 1,825,887,622 1,572,808,824 1,825,887,622 1,572,808,824


Car loan 40,509,299 45,890,983 40,509,299 45,890,983

Personal loan 4,584,484 4,914,694 4,584,484 4,914,694

Margin loan to portfolio investors - - 23,805,511 43,784,980

Loan to subsidiaries 699,600 807,633 - -

2,920,606,491 2,559,792,047 2,943,712,402 2,602,769,394

Interest on balance with other banks and financial institutions 299,596,171 392,926,897 316,026,868 415,744,584

Call loan - - - -

Loan against deposit 26,494,511 17,918,458 26,494,511 17,918,458

3,246,697,173 2,970,637,402 3,286,233,781 3,036,432,436

20 Interest on deposits and borrowings etc.

Interest on term deposits 1,865,867,553 1,716,882,691 1,833,834,960 1,689,939,882

Interest on borrowings 206,000,104 185,114,727 207,799,657 185,955,840

Interest on secured/unsecured zero coupon bonds 46,899,856 21,839,268 46,899,856 21,839,268

Interest on security deposit 36,085,366 31,986,169 36,085,366 31,986,169

Interest on call loan 10,458,611 25,132,986 10,458,611 25,132,986

Interest on lease rent 10,631,432 11,500,828 13,796,283 14,536,379

2,175,942,922 1,992,456,669 2,148,874,733 1,969,390,524


29

31.03.2020 31.03.2019 31.03.2020 31.03.2019

BDT BDT BDT BDT

21 Investment income

Gain on sale of marketable securities (118,036,921) (20,324,753) (270,006,591) 6,546,375

Dividend income 2,729,948 27,954,748 23,056,564 44,510,401

Income from investment in bonds 51,083,906 11,540,000 79,629,651 19,340,590

(64,223,067) 19,169,995 (167,320,376) 70,397,366

22 Commission, exchange and brokerage

Agency fees - - - -

Arrangement fees - 1,999,999 - 1,999,999

Commission & brokerage - - 72,859,511 101,357,125

Underwriting commission - - - 1,600,000

Documentation fees - - 9,500 36,500

Fees from mutual fund & others - - 5,737,402 4,640,501

Issue management fees - - 9,600,000 -

Portfolio management fees - - 5,253,005 10,322,085

Corporate advisory fees - - 974,256 1,400,000

Settlement charges - - 3,981,009 8,256,259

- 1,999,999 98,414,683 129,612,469

23 Other operating income

Application, processing and documentation fees 63,688,835 72,576,988 63,688,835 72,576,988

Loan settlement and others 25,494,600 19,194,349 25,494,600 19,194,349

Service charges 1,756,958 1,758,194 1,756,958 1,758,194

Gain on disposal of fixed assets 370,754 1,561,819 370,739 2,070,449

Account opening & BO account maintenance fees - - 168,140 288,802

IPO service charge - - - 29,315

Revenue from write off collection 5,503,170 7,494,853 5,503,170 7,494,853

Commission on Corporate Guarantee 663,542 656,250 663,542 656,250

Miscellaneous income 2,338,968 2,520,811 3,107,678 3,689,490

99,816,827 105,763,264 100,753,662 107,758,690

24 Salaries and allowances 292,745,261 275,363,064 355,400,362 343,682,132

25 Rent, taxes, insurance, electricity, etc.

Rent, rate and taxes 324,032 223,032 868,445 2,134,653

Insurance 3,093,674 2,025,978 3,927,811 2,301,029

Power and electricity 8,781,968 8,304,823 10,114,791 9,946,026

12,199,674 10,553,833 14,911,047 14,381,708

26 Legal expenses

Renewal and registration 1,222,725 1,675,897 1,764,721 2,291,341

Other professional charges 561,250 1,331,146 944,400 1,594,646

1,783,975 3,007,043 2,709,121 3,885,987

27 Postage, stamp, telecommunication, etc.

Postage 371,676 428,480 404,842 470,309

Telecommunication and internet etc. 8,913,874 8,071,523 10,799,725 9,987,284

9,285,550 8,500,003 11,204,567 10,457,593

28 Stationery, printing, advertisements, etc.

Stationery & printing 9,852,409 6,753,820 10,421,396 7,692,781

Advertisement and publicity 13,968,172 13,253,669 15,576,167 19,883,587

23,820,581 20,007,489 25,997,563 27,576,368


30

31.03.2020 31.03.2019 31.03.2020 31.03.2019

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 870,000 750,000 870,000 750,000

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

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

3,520,000 3,400,000 3,520,000 3,400,000

30 Directors' fees

Honorarium for attending meeting 237,600 340,400 394,049 450,576

237,600 340,400 394,049 450,576

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) 61,277,849 65,401,081 73,856,477 76,259,301

5,952,466 4,712,773 7,288,397 6,199,846

67,230,315 70,113,854 81,144,874 82,459,147

33 Other expenses

Bank charges 984,065 1,392,186 1,270,371 1,773,534

Books and periodicals 66,611 68,238 87,912 85,914

Car expenses 7,710,387 6,914,537 8,528,787 8,066,925

Donations and subscriptions 1,095,595 534,486 1,266,220 594,647

Medical & welfare expenses 10,832,749 8,212,955 11,247,929 8,615,236

Entertainment expenses 9,558,368 4,282,595 9,794,563 4,602,259

Consultancy fees 1,805,705 1,594,278 1,805,705 1,594,278

Office service expenses 22,067,155 21,059,189 26,329,724 25,926,277

Training expenses 2,004,926 188,522 2,118,384 556,541

Travel and conveyances 7,567,678 7,364,185 7,817,980 7,679,216

CDBL charges - - 160,806 364,284

Howla and Laga charge - - 11,161,184 12,044,655

Portfolio Management Charge 934,640 9,539,725 - -

Sales Incentive 15,845,129 16,753,397 16,426,732 16,779,789

Repossession fees and others 6,133,950 1,659,354 6,348,016 1,739,099

86,606,958 79,563,648 104,364,313 90,422,654


Managing Director's salary and benefits have been revised and is effective from March 2019.

Repair and maintenance for premises, vehicles, computers and

computers accessories

31

31.03.2020 31.03.2019 31.03.2020 31.03.2019

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) 435,036,578 409,817,857 292,630,805 515,340,057

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) 1.15 1.09 0.78 1.37

31.03.2020 31.12.2019 31.03.2020 31.12.2019

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

Net Asset (total assets less total liabilities) (A) 11,666,143,945 11,231,107,366 14,310,202,212 14,017,571,433

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) 30.94 29.79 37.95 37.18

31.03.2020 31.03.2019 31.03.2020 31.03.2019

BDT BDT BDT BDT

36 Net Operating Cash Flows Per Share (NOCFPS)

Net cash flows from operating activities (A) (1,520,627,587) (2,734,989,756) (822,182,679) (3,475,609,798)

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) (4.03) (7.25) (2.18) (9.22)

37 Reconciliation of Net Profit with Cash Flows from Operating Activities

Net profit after tax 435,036,578 409,817,857 292,630,779 515,340,083

Items not involved in cash movement:

Add: Depreciation 61,277,849 65,401,081 73,856,477 76,259,301

Add: Provision for loans and investments (77,946,138) 10,710,382 (7,067,097) 4,320,634

Add: Provision for taxation 273,367,421 187,608,096 323,360,487 249,211,126

Add/ (Less): Accrued expenses 55,671,001 344,914,229 182,657,033 3,440,224,023

Add/ (Less): Accrued income (243,987,170) (72,240,149) (305,968,137) (10,595,902)

Less: Gain On Disposal of Fixed assets (370,754) (1,561,819) (370,739) (2,070,449)

Increase/(Decrease) in Employee gratuity 9,561,880 9,771,056 11,552,720 13,291,432

Increase/(Decrease) in deferred tax (21,741,016) 25,927,072 (39,651,799) 28,933,679

490,869,651 980,347,805 530,999,725 4,314,913,926


(Increase)/Decrease in Loans & advances (113,729,281) (3,315,188,271) (13,443,379) (3,290,991,373)

(Increase)/Decrease in Other assets (57,696,727) (550,386,028) (58,477,461) (489,619,451)

Increase/(Decrease) in Short term borrowings (600,000,000) (1,400,000,000) (650,000,000) (1,650,000,000)

Increase/(Decrease) in Term & other deposits (1,319,471,411) 1,252,449,389 (868,881,320) 872,613,598

Increase/(Decrease) in Payable and accrued expenses 218,387,360 379,951,724 218,387,361 (3,071,013,958)

(Increase)/Decrease in Income tax (156,848,078) (166,398,756) (176,110,057) (203,550,653)

Increase/(Decrease) in Portfolio investors fund - - 177,481,554 (42,196,267)

Increase/(Decrease) in Interest suspense 17,860,899 84,234,382 17,860,899 84,234,382

(2,011,497,238) (3,715,337,560) (1,353,182,403) (7,790,523,724)

Net cash flows from/(used in) operating activities (1,520,627,587) (2,734,989,756) (822,182,679) (3,475,609,798)

- - - -

Dhaka, May 14, 2020


Adjustments to reconcile net profit after tax to net cash provided by

operating activities

Reason for changes in Earnings Per Share (EPS):

EPS of IDLC Finance Limited for the period ended March 31, 2020 is BDT 1.15, which was BDT 1.09 in the same period of previous year. While investment income fell by 435%

(decline of BDT 83.39 million) and operating expense increased by 5.64% (increased by BDT 26.58 million), net interest income increased by 9.46% (increased by BDT 92.57 million)

and provision charged during the period declined by 828% (decline of BDT 88.66 million) resulting in a 6.15% increase in net profit after tax (increase of BDT 25.22 million).

EPS of IDLC Group for the period ended March 31, 2020 is BDT 0.78, which was BDT 1.37 in the same period of previous year. While net interest income increased by 6.59% (increased

by BDT 70.32 million) and provision charged during the period declined by 264% (decline of BDT 11.39 million), investment income fell by 338% (decline of BDT 237.72 million) and

operating expense increased by 3.97% (increased by BDT 22.93 million) resulting in a 43.22% decline in net profit after tax (decline of BDT 222.71 million).

Reason for changes in Net Operating Cash Flows Per Share (NOCFPS):

NOCFS of IDLC Finance Limited for the period ended March 31, 2020 is BDT (4.03), which was BDT (7.25) in the same period of previous year. The primary reason behind this variance

is cash generation from long term finance and real estate finance, which saw a increase of BDT 3,190 million and BDT 1,094 million respectively. On the other hand, cash generation from

term and other deposits declined by BDT 2,572 million. Overall cash generation form operating activities increased by BDT 1,214 million during the period ended March 31, 2020.

In consolidated financial statement, NOCFPS for the period ended March 31, 2020 is BDT (2.18) which was BDT (9.22) in the same period of previous year. The primary reason behind

this variance is cash generation from long term finance, real estate finance and net drawdown from short term loan, which saw a increase of BDT 3,190 million, BDT 1,094 million and

BDT 1,000 million respectively. On the other hand, cash generation from term and other deposits declined by BDT 1,741 million. Overall cash generation form operating activities

increased by BDT 2,653 million during the period ended March 31, 2020.

IDLC Group



Chairman Director Chief Financial OfficerCEO & Managing Director Company Secretary

Sd/- Sd/- Sd/-

32

(Annexure A)

Fixed assets including land, building, furniture and fixtures-for 1st quarter end 2020

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 2020 the period/year the period/year 2020 2020 theperiod/year the period/year 2020 2020

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 36,313,066 1,296,996 - 37,610,062 169,909,240

Right-of-use Asset 619,327,760 - - 619,327,760 127,989,344 31,856,079 - 159,845,423 459,482,337

Furniture and fixtures 95,594,555 1,777,381 (75,949) 97,295,987 12.50 52,806,628 2,385,324 (75,904) 55,116,048 42,179,939

Electrical equipment 77,396,392 334,179 (2,877,250) 74,853,321 20.00 58,842,834 2,336,846 (2,877,180) 58,302,500 16,550,821

Curtain and carpets 4,143,826 225,772 - 4,369,598 33.33 2,735,283 225,123 - 2,960,406 1,409,192

Office equipment 102,579,725 474,941 (5,838,126) 97,216,540 20.00 83,453,779 3,423,375 (5,837,741) 81,039,413 16,177,127

Office decoration 151,826,439 159,664 - 151,986,103 20.00 107,888,484 5,374,065 - 113,262,549 38,723,554

Computers 191,938,941 148,250 (1,492,889) 190,594,302 20.00 137,664,280 4,804,857 (1,436,070) 141,033,067 49,561,235

Software (Office Operation) 40,837,486 262,500 - 41,099,986 33.33 35,002,957 758,812 - 35,761,769 5,338,216

Software (Business Operation) 137,540,494 - - 137,540,494 20.00 135,997,033 257,242 - 136,254,275 1,286,219

Telephone and telex 18,691,029 1,373,828 (143,550) 19,921,307 33.33 7,352,269 1,344,039 (81,804) 8,614,504 11,306,803

Motor vehicles 249,830,698 3,154,200 (835,000) 252,149,898 25.00 211,856,120 7,215,091 (780,407) 218,290,804 33,859,094

Total as on March 31, 2020 1,924,185,117 7,910,715 (11,262,764) 1,920,833,068 997,902,078 61,277,849 (11,089,106) 1,048,090,821 872,742,247

Total as on December 31, 2019 1,302,436,541 683,396,137 (61,647,561) 1,924,185,117 803,301,418 254,776,553 (60,175,893) 997,902,078 926,283,039

Cost Depreciation

33

A(a) Consolidated fixed assets including land, building, furniture and fixtures-for 1st quarter end 2020

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 2020 theperiod/year the period/year 2020 2020 the period/year the period/year 2020 2020

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 36,313,066 1,296,996 - 37,610,062 169,909,240

Right-of-use Asset 785,735,245 - - 785,735,245 154,953,567 39,023,352 - 193,976,919 591,758,326

Furniture and fixtures 114,418,193 1,794,243 (75,949) 116,136,487 12.50 64,017,789 2,759,900 (75,904) 66,701,785 49,434,702

Electrical equipment 102,569,467 425,969 (2,877,250) 100,118,186 20.00 78,556,512 2,785,202 (2,877,180) 78,464,534 21,653,653

Curtain and carpets 5,891,853 262,108 - 6,153,961 33.33 4,052,342 289,933 - 4,342,275 1,811,687

Office equipment 140,799,664 500,341 (5,838,126) 135,461,879 20.00 115,651,689 3,958,395 (5,837,741) 113,772,343 21,689,536

Office decoration 183,846,749 159,664 - 184,006,413 20.00 128,641,897 6,531,512 - 135,173,409 48,833,003

Computers 216,905,183 353,750 (1,492,889) 215,766,044 20.00 158,223,666 5,354,430 (1,436,070) 162,142,026 53,624,018

Software (Office Operation) 51,077,865 262,500 - 51,340,365 33.33 43,712,006 940,289 - 44,652,295 6,688,070

Software (Business Operation) 142,176,620 - - 142,176,620 20.00 138,608,454 541,842 - 139,150,296 3,026,324

Telephone and telex 22,206,287 1,447,840 (173,550) 23,480,577 33.33 10,382,551 1,437,831 (111,789) 11,708,593 11,771,984

Motor vehicles 296,046,939 3,154,200 (835,000) 298,366,139 25.00 243,061,905 8,936,795 (780,407) 251,218,293 47,147,846

Total as on March 31, 2020 2,296,151,837 8,360,615 (11,292,764) 2,293,219,688 1,176,175,444 73,856,477 (11,119,091) 1,238,912,830 1,054,306,858

Total as on December 31, 2019 1,508,163,591 875,939,316 (87,951,070) 2,296,151,837 956,137,645 302,983,900 (82,946,101) 1,176,175,444 1,119,976,393

Cost Depreciation

34

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 (77.95) million has been

charged as incremental provision for

leases, loans and advances, which

includes BDT (0.13) million as general

provision on good loan for the first

quarter end 2020. Also, as at 31 March

2020, accumulated provision for leases,

loans and advances stand at BDT

1,574.43 million.

In consolidated Financial Statements,

the same amount is BDT (7.07) million

which includes general provision of

BDT 0.54 million. Also, as at 31 March

2020, accumulated provision for leases,

loans and advances stand at BDT

1,725.74 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 period, total market value of

all shares of IDLC Finance Limited & its

subsidiaries is less than the cost price.

As on March 31, 2020 there was BDT

1,012.84 million gross loss on

consolidated investment in marketable

securities and BDT 115.27 million gross

loss on investment by IDLC Finance

Limited in marketable securities. (except

investment in government bond)

Annexure B - Disclosure of deviations from few requirements of IAS/IFRS due to mandatory compliance with Bangladesh Bank’s requirements

35

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

increased to BDT 526.74 million from

BDT 508.88 million resulting increase

of BDT 17.86 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 2020 and corresponding period of

2019 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.





36

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 posit ion.


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. Moreover, the liquidity statement


37

SL. Nature of



Bank


the Departure

shows the aging profile of all financial

assets and liabilities from where

current/non-current portion of assets and

liabilities can be obtained.

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,


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,






Bank.


departure in the financial statements.


38

SL. Nature of



Bank


the Departure

v) notes, comprising significant

accounting policies and other explanatory

information and

vi) statement of financial position at the

beginning of preceding period for

retrospective restatement.

vi) notes, comprising significant accounting

policies and other explanatory information.

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.






Bank.



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.



2019 have been prepared as per the

guideline and templates issued by

Bangladesh Bank.




39

SL. Nature of



Bank


the Departure

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






Bank.




IDLC Finance Limited Bay’s Galleria (1 Floor) 57 Gulshan ...€¦ · 4 Note 31.03.2020 31.12.2019...

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Transcript of IDLC Finance Limited Bay’s Galleria (1 Floor) 57 Gulshan ...€¦ · 4 Note 31.03.2020 31.12.2019...