nccbl

National Credit and Commerce Bank Limited Notes to the Financial Statements As at and for the period ended June 30, 2011

1.1 Status of the bank

1.1.1 The National Credit and Commerce Bank Limited (NCCBL) was formed as a public limited banking company incorporated in Bangladesh with primary objective to carry on all kinds of banking business in

and outside Bangladesh.

1.1.2 The registered office of the Bank is located at 7-8, Motijheel Commercial Area, Dhaka-1000. It has 81 branches all over the Bangladesh and the bank has no overseas branches as at June 30, 2011. It carries

out all banking activities through it branches in Bangladesh. The Bank went for Initial Public Offering in 1999 and its share is listed with Dhaka and Chittagong Stock Exchange Limited as a publicly traded

company for its general class of shares.

1.1.3 The bank commenced its banking business with sixteen branches from May 17, 1993.

1.1.4 Principal activities

The commercial banking business activities of the bank encompass a wide range of services including

accepting deposits, making loans, discounting bills, conducting money transfer, foreign exchange

transactions and performing other related services such as safekeeping collection, issuing guarantees, acceptances and letter of credits through its branches in Bangladesh.

1.1.5 NCCB Securities and Financial Services Limited

NCCB Securities and Financial Services Limited is a subsidiary company of National Credit and Commerce

Bank Limited incorporated on April 04, 2010 as a private limited company under the Companies Act-1994 vide Certificate of incorporation no. C-83683/10. The main objective of the company is to act as a full

fledged Stock Broker & Stock Dealer to execute buy and sell order and to maintain own portfolio as well

as customer portfolio under the discretion of customers. The company also performs the other activities relates to Capital Market as and when regulations permits the company to carry out activities as per their

guidelines. Financial Statements of the company shown in Annexure-M

1.2 Significant accounting policies and basis of preparation of financial statements

1.2.1 Basis of accounting

Statement of compliance

The financial statements of the Group and the Bank are made up to June 30, 2011 and are prepared

under the historical cost convention except investments, land & properties and in accordance with the “First Schedule Section 38(4) of the Bank Companies Act, 1991, BRPD Circular # 14 dated 25 June, 2003,

other Bangladesh Bank Circulars, Bangladesh Accounting Standards and Bangladesh Financial Reporting Standards, The Companies Act, 1994, The Securities and Exchange Rules 1987, Dhaka & Chittagong

Stock Exchanges listing regulations and other laws and rules applicable in Bangladesh.

1.2.2 Basis of consolidation

The consolidated financial statements include the financial statements of NCC Bank Limited and its

subsidiary company NCCB Securities and Financial Services Limited made up to June 30, 2011. The

consolidated financial statements have been prepared in accordance with Bangladesh Accounting Standards 27-“Consolidated &Separate Financial Statements”.

Transactions eliminated on consolidation

All intra-group transactions, balances, income and expenses are eliminated on consolidation. Profit and

loss resulting from transactions is also eliminated on consolidation.

1.2.3 Use of estimates and judgments

The preparation of financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets,

liabilities, income and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised and in any future periods affected.

1.2.4 Going concern

The financial statements have been prepared on a going concern basis, which contemplate the realization

of assets and the satisfaction of liabilities in the normal course of business.

1.2.5 Functional and presentation currency

The financial statements are presented in Bangladeshi Taka which is the bank's functional currency

except as indicated.

1.2.6 Materiality & aggregation

Each significant material item as considered by the management has been presented separately in the

financial statements. No amount has been set off unless the bank has a legal right to set off the amounts is intended to settle on net basis. Income and expenses are presented on a net basis only when

permitted by the relevant Accounting Standards.

1.2.7 Foreign currency transaction

a) Foreign currencies translation

Foreign currency transactions are converted into equivalent taka using the ruling exchange rates on the

dates of respective transactions as per BAS-21 “The Effects of Changes in Foreign Exchange Rates”. Assets and liabilities in foreign currencies are converted into taka at weighted average rate of inter-bank

market as determined by Bangladesh Bank on the closing date of every month.

b) Commitments

Contingent liabilities / commitments for letters of credit and letters of guarantee denominated in foreign currencies are expressed in Taka terms at the rates of exchange ruling on the balance sheet date.

c) Translation gains and losses

The resulting exchange transaction gains and losses are included in the profit and loss account.

1.2.8 Cash flow statement

Cash flow statement has been prepared in accordance with the Bangladesh Accounting Standard-7 “Cash

Flow Statements” under direct method as recommended in the BRPD Circular No. 14, dated June 25, 2003 issued by the Banking Regulation & Policy Department of Bangladesh Bank.

1.2.9 Liquidity statement

The liquidity statement of assets and liabilities as on the reporting date has been prepared on residual

maturity term as per the following bases.

i) Balance with other banks and financial institutions, money at call and short notice, etc. are shown on the basis of their maturity term;

ii) Investments are on the basis of their respective maturity; iii) Loans and advances / investments are on the basis of their repayment schedule;

iv) Fixed assets are on the basis of their useful lives; v) Other assets are on the basis of their realization / amortization;

vi) Borrowing from other banks, financial institutions and agents, etc. are as per their maturity /

repayment terms; vii) Deposits and other accounts are on the basis of their maturity term and past trend of withdrawal

by the depositors; viii) Provisions and other liabilities are on the basis of their payment / adjustments schedule.

1.2.10 Reporting period

These financial statements cover for the period from January 01, 2011 to June 30, 2011.

1.3 Assets and basis of their valuation

1.3.1 Cash and cash equivalents

Cash and cash equivalents include notes and coins on hand, unrestricted balances held with Bangladesh

Bank and highly liquid financial asset which are subject to insignificant risk of changes in their fair value and are used by the bank management for its short-term commitments.

1.3.2 Loans and advances

a) Loans and advances of conventional banking in branches are stated in the balance sheet on gross

basis.

b) Interest is calculated on a daily product basis but charged and accounted for on accrual basis. Interest on classified loans and advances are kept in suspense account as per Bangladesh Bank

instructions and such interest is not accounted for as income until realized from borrowers (please refer Note- 9.10 (x) Interest is not charged on bad and loss loans as per guidelines of Bangladesh

Bank. Records of such interest amounts are kept in separate memorandum accounts.

c) Provision for loans and advances are made on the bases of year-end review by the management following instructions contained in Bangladesh Bank BCD Circular no. 34 dated 16 November 1989,

BCD Circular no. 20 dated 27 December 1994, BCD Circular no. 12 dated 4 September 1995, BRPD Circular 16 dated 6 December 1998, BRPD Circular no. 9 dated 14 May 2001, BRPD Circular no. 09

of August 2005 and BRPD Circular no.17 dated 06 December 2005. The classification rates are

given below:

Particulars Rate

General provisions on unclassified general loans and advances 1%

General provision on unclassified small enterprise financing 2% General provision on unclassified loans for housing finance and on

loans for professionals

2%

General provision on unclassified consumer financing other than

housing finance and loans for professionals

5%

General provision on special mention account 5%

Specific provision on substandard loans and advances 20%

Specific provision on doubtful loans and advances 50% Specific provision on bad / loss loans and advances 100%

d) Loans and advances with no realistic prospect of recovery have been written off against which

full provisions made and legal cases initiated but pending. Detailed memorandum records for all

such written off accounts are maintained without reducing the bank’s claim.

1.3.3 Investments

All investment securities are initially recognized at cost, being fair value of the consideration given,

including acquisition charges associated with the investment. Premiums are amortized and discounts accredited, using the effective yield method and are taken to discount income. The valuation methods of

investments used are:

Held to maturity (HTM)

Investments which have ‘fixed or determinable payments’ and are intended to be ‘held to maturity’ other

than those that meet the definition of ‘held at amortized cost-others’ are classified as held to maturity. These investments are subsequently measured at present value as per Bangladesh Bank

guideline. Investments in securities have been revalued as mark to market as at June 30, 2011. The gain of revaluation from the held to maturity securities has been shown in the statement of changes in

equity of June 30, 2011.

Held for trading (HFT)

Investments classified in this category are acquired principally for the purpose of selling or repurchasing

in short-trading or if designated as such by the management after initial recognition, investments are measured at fair value and any change in the fair value is recognized.

Value of investments has been enumerated as follow:

Item Applicable accounting Value

Government Treasury Bills Present value Government Treasury Bonds Present value

ICB’s Debenture Present value Prize bonds At cost

Quoted shares As per BRPD Circular no.14 dated June 25, 2001 Un-quoted shares At cost

Investment in listed securities

These securities are bought and held primarily for the purpose of selling them in future of held for

dividend income. These are reported at cost unrealized gains are not recognized in the profit and loss account.

Investment in unlisted securities

Investment in unlisted securities is reported at cost under cost method. Adjustment is given for any

shortage of book value over cost for determining the carrying amount of investment in unlisted securities.

1.3.4 Property, plant and equipment

a) Land and building were revalued on 31.12.2008. Fixed assets are stated at historical cost or revalued amount (whenever applicable) less accumulated depreciation as per BAS -16” Property, Plant and

Equipment” the cost of acquisition of an assets comprises its purchase price and any directly attributable cost of bringing the assets to its working condition for its intended use inclusive of inward freight, duties

and non refundable taxes.

b) The bank recognizes in the carrying amount of an item of property, plant and equipment the cost of replacing part of such an item when that cost is incurred if it is probable that the future economic

benefits embodied with the item will flow to the company and the cost of the item can be measured

reliably. Expenditure incurred after the assets have been put into operation such as repairs and maintenance is normally charged of as revenue expenditure in the period in which it is incurred.

c) Depreciation is charged for the year at the following rates on reducing balance method on all fixed

assets other than vehicles and software on which straight line depreciation method is followed and no depreciation on land is charged:

Category of fixed assets Rate

Land Building/Apartment & Structure

Nil 2.50%

Furniture & fixture 10.00% to 20.00% Office equipment & Machineries 20.00%

Software (straight line) 20.00% Vehicles (straight line) 20.00%

d) For additions during the year, depreciation is charged for the remaining days of the period and for

disposal depreciation is charged up to the date of disposal.

e) On disposal of fixed assets the cost and accumulated depreciation are eliminated from the fixed assets schedule and gain or loss on such disposal is reflected in the profit and loss account which is determined

with reference to the net book value of the assets and net sale proceeds.

Other assets

a) Provision for other assets

Other assets have been clarified as per BRPD circular no. 14 dated 25.06.2001 of Bangladesh Bank and necessary provisions made thereon accordingly and for item not covered under the circular adequate

provision have been made considering their realisability.

b) Written off other assets

Other assets having no realistic prospect of recovery have been written off and full provisions have been

kept against the debts. Notional balance against the written off investments have been kept to maintain the detailed memorandum records for written off account.

Non-banking assets

There are no assets acquired in exchange for loan during the year of financial statements.

1.3.5 Leasing

Leases are classified as finance leases whenever ‘the terms of the lease’ transfer substantially all the risk

and rewards of ownership to the lessee as per BAS-17 “Lease”.

The Bank as lessor Amount due from lessees under finance leases are recorded as receivables at the amount of the Banks

Loans and Advances in the leases.

The Bank as lessee

The Bank has no assets under finance or operating Leases.

1.4 Basis for valuation of liabilities and provisions

1.4.1 Provision for taxation

Provision for current income tax has been made @ 42.5% as prescribed in the Finance Act, 2011 on the accounting profit made by the Bank after considering some of the add backs to income and disallowances

of expenditure as per income tax laws in compliance with BAS-12 “Income Taxes”.

1.4.2 Deferred taxation

Deferred tax liabilities are the amount of income taxes payable in future periods in respect of taxable temporary differences. Deferred tax assets are the amount of income taxes recoverable in future periods

in respect of deductible temporary differences. Deferred tax assets and liabilities are recognized for the future tax consequences of timing difference arising between the carrying values of assets, liabilities,

income and expenditure and their respective tax bases. Deferred tax assets & liabilities are measured

using tax rates and tax laws that have been enacted or substantially enacted at the balance sheet date.

The impact on the account of changes in the deferred tax assets and liabilities has also been recognized in the profit and loss account as per BAS -12 “Income Taxes”.

1.4.3 Dividend payments

Interim dividends are recognized when they are paid to shareholders. Final dividend is recognized when it is approved by the shareholders.

Dividend payable to the bank’s shareholders are recognized as a liability and deducted from the

shareholders equity in the period in which the shareholders right to receive the payment is established.

1.4.4 Statutory reserve

Bank Companies Act, 1991 requires the bank to transfer not less than 20% of its current period profit

before tax to reserve until such reserve equals to its paid up capital.

1.4.5 Revaluation reserve

When an asset’s carrying amount is increased as a result of a revaluation, the increased amount credited directly to equity under the heading of revaluation surplus/reserve as per BAS-16: “Property, Plant and

Equipment”. The Bank revalued the assets of Land and Buildings which is absolutely own by the Bank

and the increased amount transferred to revaluation reserve. The tax effects on revaluation gain are measured and recognized in the financial statements as per BAS-12: “Income Taxes”

1.4.6 Benefits to the employees

The retirement benefits accrued for the employees of the bank as on reporting date have been accounted

for in accordance with the provisions of BAS-19 “Employee Benefits”. The bank operates retirement benefits scheme for its permanent employees. Elements of which are as under:

a) Provident fund

Provident fund benefits are given to the permanent employees’ of the bank in accordance with bank’s service rules. Accordingly a trust of deed and provident fund rules were prepared. The Commissioner of

Income Tax, Taxes Zone-04, Dhaka has approved the provident fund as a recognized provident fund

within the meaning of section 2(52), read with the provisions of part - B of the First Schedule of Income Tax Ordinance 1984. The recognition took effect from 16.01.1992. The fund is operated by a Board of

Trustees consisting 06 (six) members. All confirmed employees of the bank are contributing 10% of their basic salary as subscription to the fund. The bank also contributes equal amount of the employees’

contribution. Interest earned from the investments is credited to the members account on yearly basis.

b) Gratuity fund

The bank has operated funded gratuity fund which was approved by National Board of Revenue on. The fund is operated Board of Trustees. Provision in respect of which is made annually covering all its

permanent eligible employees as per BAS-19 “Employee Benefits”.

c) Superannuation fund

The bank operates an employees’ Superannuation Fund Trust by a separate Board of Trustees consisting of 05 (Five) members. The death-cum survival benefits are given to the employees as per the eligibility

narrated in the Trust Rules. The fund got recognition from the National Board of Revenue (NBR) effect

from 01.01.2004 under the section 3 and 4 of part –A of First Schedule of Income Tax Ordinance 1984. The bank contributes to the fund annually as per Superannuation Fund Rules of the bank.

d) Benevolent Fund

NCCBL employees’ benevolent fund was established in the year 2007 for the welfare of the distressed employees and their dependents. The employees of the bank contribute to the fund at a rate applicable

for each grade from their monthly salary.

1.4.6 Provision for liabilities

A provision is recognized in the balance sheet when the bank has a legal or constructive obligation of a

result of a past event and it is probable that an outflow of economic benefit will be required to settle the obligation in accordance with the BAS-37 “Provisions, Contingent Liabilities and Contingent Assets”.

1.5 Revenue recognition

1.5.1 Interest income

In terms of the provision of the BAS-18 “Revenue” the interest income is recognized on accrual basis. Interest on loans and advances ceases to be taken in to income when such advances are classified. It is

than kept in interest suspense in a memorandum account. Interest on classified advances is accounted

for on a cash receipt basis.

1.5.2 Investment income

Interest income on investments is recognized on accrual basis. Capital gain on investments in shares is

also included in investment income. Capital gain is recognized when it is realized.

1.5.3 Fees and commission income

Fees and commission income arises on services provided by the bank are recognized on a cash received basis. Commission charged to customer on letters of credit and letters of guarantee is credited to income

at the time of effecting the transactions.

1.5.4 Dividend income on shares

Dividend income on shares is recognized during the period in which it is declared and ascertained.

1.6 Reconciliation of inter-bank and inter-branch account

Accounts with regard to inter-bank are reconciled regularly and there are no material differences which

may affect the financial statements significantly.

Un-reconciled entries / balances incase of inter-branch transaction as on the reporting date are not material.

1.7 Risk management

The risk of NCCBL is defined as the possibility of losses, financial of otherwise. The risk management of

the bank covers core risk areas of banking viz, credit risk, liquidity risk, operational risk and reputation risk arising from money laundering incidences. The prime objective of the risk management is that the

bank evaluates and takes well calculative business risks and there by safeguarding the banks capitals, its financial resources and profitability from various business risks through its own measures and through

implementing Bangladesh Bank guidelines and following some of the best practices as under:

1.7.1 Credit risk

It arises mainly from lending, trade finance, leasing and treasury business. This can be described as potential loss arises from the failure of a counter party to perform as per contractual agreement with the

bank. The failure may result from unwillingness of the counter party of decline in his or her financial condition there for the banks credit risk management activities have been designed to address all these

issues.

The Bank has segregated duties of the officers / executives involved in credit related activities a separate

corporate division has been formed at Head office which is entrusted with the duties of maintaining effective relationship with the customers, marketing of credit products, exploring now business

opportunities etc. more over, credit approval, administration, monitoring and recovery functions have been segregated. For this purpose, three separate units have been formed within the credit division these

are a) Credit risk Management Unit b) Credit Administration Unit and c) Credit monitoring and recovery Unit. Credit risk management Unit is entrusted with the duties of maintaining assets quality, assessing

risk in lending to a particular customer, sanctioning credit, formulating policy / strategy for lending

operation, etc. Adequate provision has been made on classified loans is shown in Note 14.4 (a).

A thorough assessment is done before sanction of any credit facility at Credit Risk Management unit. The

risk assessment includes borrower risk analysis, financial analysis, industry analysis, historical

performance of the customer, security of the proposed credit facility, etc. The assessment process starts at Corporate Credit Division by the Relationship Manager / Officer and ends at Credit Risk Management

Unit when it is approved / declined by the competent authority. Credit approval authority has been delegated to the individual at executives. Proposals beyond their delegation are approved / declined by

the Executives Committee and / or the Management of the Bank. In determining Single borrower / large

loan limit, the instructions of Bangladesh Bank are strictly followed. Internal audit is conducted at periodical intervals to ensure compliance of Bank’s and Regulatory policies. Loans are classified as per

Bangladesh Bank’s guidelines. Concentration of single borrower/large loan limit is shown in Annexure-D.

1.7.2 Liquidity risk

The objective of liquidity risk management is to ensure that all foreseeable funding commitments and

deposit withdrawals can be met when due. To this end, the Bank is maintaining a diversified and stable funding base comprising of core retail and corporate deposits and institutional balances. Management of

liquidity and funding is carried out by Treasury Department under approved policy guidelines. Treasury

front office is supported by a very structured Mid office and Back office. Asset Liability Committee (ALCO) monitors the Liquidity management on a regular basis. A written contingency plan is in place to manage

extreme situation.

1.7.3 Market risk

The exposure of market risk of the bank is restricted to foreign exchange risk, interest rate risk and equity risk.

Foreign exchange risk

Foreign exchange risk is defined as the potential change in earning due to change in market prices. The foreign exchange risk of the Bank is minimal as all the transactions are carried out on behalf of the

customers against underlying L/C commitments and other remittance requirements. No foreign exchange dealing on Banks account was conducted during the year.

Treasury Department independently conducts the transactions and the back office of treasury is

responsible for verification of the deals and passing of their entries in the books of account. All foreign exchange transactions are revalued at Mark-to-Market rate as determined by Bangladesh Bank at the

month-end. All Nostro accounts are reconciled on a monthly basis and the management for its settlement

reviews outstanding entry beyond 30 days. The position maintained by the bank at the end of day was within the stipulated limit prescribed by the Bangladesh Bank.

Interest rate risk

Interest rate risk may arise either from trading portfolio and non-trading portfolio. The trading portfolio of the Bank consists of Government treasury bills of 28 days maturity. The short-term movement in interest

rate is negligible or nil. Interest rate risk of non-trading business arises from mismatches between the

future yield of an asset and its funding cost. Asset liability Committee (ALCO) monitors the interest rate movement on a regular basis.

Equity risk

Equity risk arises from movement in market value of equities held. The market value of equities is lesser

than cost price against which provision is appearing made in these financial statements.

1.7.4 Reputation risk arising from money laundering incidences

Money laundering risk is defined as the loss of reputation and expenses incurred as penalty for being negligent in prevention of money laundering. For mitigating the risks, the bank has a designated Chief

Compliance officer at Head office and Compliance officers at branches, who independently review the transactions of the accounts to verify suspicious transactions. Manuals for prevention of money

laundering have been established and transaction profile has been introduced. Training is continuously

given to all the category of Officers and Executives for developing awareness and skill for identifying suspicious activities / transactions.

1.7.5 Operational risk

Operational risk may arise from error and fraud due to lack of internal control and compliance.

Management through internal control and compliance division controls operational procedure of the Bank. Internal Control and compliance division undertakes periodical and special audit of the branches and

departments at the Head Office for review of the operation and compliance of statutory requirements. The Audit Committee of the Board subsequently reviews the reports of the internal control and

compliance division.

1.8 Earnings per share

Basic earning per share

Basic earning per share has been calculated in accordance with BAS-33 “Earning per Share” which has

been shown on the face of the profit and loss account. This has been calculated by dividing the basic earning by the weighted average number of ordinary shares outstanding during the period.

Diluted earnings per share

No diluted earning per share is required to be calculated for the period as there was no scope for dilution

during the year under review.

1.9 Off-balance sheet items & provisions

Off balance sheet items have been disclosed under contingent liabilities and other commitments as per Bangladesh Bank guidelines. Provision for Off-balance sheet items is made as per instruction contained in

BRPD Circular # 10, dated September 18, 2007 @ 1% on Off-balance sheet items as on June 30, 2011.

1.10 Memorandum items

Memorandum items are maintained to have control over all items of importance and for such transactions where the Bank has only a business responsibility and no legal commitment. Stock of Traveler’s Cheques

(TC), Saving Certificates and other fall under the memorandum items.

1.11 Offsetting

Financial assets and financial liabilities are offset and the net amount reported in the balance sheet when

there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis, or realize the asset and settle the liability simultaneously.

1.12 Compliance of Bangladesh Accounting Standards (BAS) and Bangladesh Financial Reporting

Standards (BFRS):

Name of the BAS BAS no Status

Presentation of Financial Statements 1 Applied Inventories 2 Not applicable

Cash Flow Statements 7 Applied Accounting Policies, Changes in Accounting

Estimates and Errors

8 Applied

Events after the Balance Sheet Date 10 Applied

Construction Contracts 11 Not applicable Income Taxes 12 Applied

Property, Plant and Equipment 16 Applied

Leases 17 Applied Revenue 18 Applied

Employee Benefits 19 Applied

Accounting for Government Grants and Disclosure of Government Assistance

20 Not applicable

The Effect of Changes in Foreign Exchanges Rates

21 Applied

Borrowing Costs 23 Applied

Related Party Disclosures 24 Applied

Accounting and Reporting by Retirement Benefit Plans

26 Applied

Consolidated and Separate Financial Statements 27 Applied

Investments in Associates 28 Applied

Interest in Joint Ventures 31 Not applicable Earnings Per Share 33 Applied

Interim Financial Reporting 34 Applied Impairment of Assets 36 Applied

Provisions, Contingent Liabilities and Contingent

Assets

37 Applied

Intangible Assets 38 Applied

Investment Property 40 Applied Agriculture 41 Not applicable

Name of the BFRS BFRS no. Status Share Based Payment 2 Not applicable

Business Combinations 3 Not applicable Non-current Assets Held for Sale and

Discontinued Operations

5 Not applicable

Financial Instruments: Disclosure 7 Applicable

Operating Segments 8 Applicable

1.13 Regulatory and legal compliance

The Bank complied with the requirements of following regulatory and legal authorities:

a) The Bank Companies Act, 1991;

b) The Companies Act, 1994; c) Rules and Regulations issued by Bangladesh Bank;

d) The Securities and Exchange Rules 1987, The Securities and Exchange Ordinance 1969, The

Securities and Exchange Commission Act, 1993, The Securities and Commission (Public Issue) Rules 2006;

e) The Income Tax Ordinance, 1984; f) The VAT Act, 1991;

g) Other Laws & Regulations as applicable.

1.14 Information and communication technology

NCCBL follows the guideline stated in BRPD Circular no. 14 dated 23 October 2005 regarding “Guideline

on Information and Communication Technology for Scheduled Banks”.

IT management deals with IT policy documentation, internal IT audit, training and insurance.

IT operation management covers the dynamics of technology operation management including change

management, assets management and operating environment procedures management. The objective is to achieve the highest levels of technology service quality by minimum operational risk.

Physical security involves providing environmental safeguards as well as controlling physical access to

equipment and data.

In order to ensure that information assets are protected against risk, there are controls over :

a) Password b) User ID maintenance

c) Input d) Network security

e) Data encryption

f) Virus protection g) Internet and e-mail

The Business Control Plan (BCP) is formulated to cover operational risk and taking into account the potential for wide area disasters, data center disasters and the recovery plan. The BCP takes into account

the backup and recovery process.

1.15 Asset Liability Management

The Assets Liability Committee (ALCO) of the Bank monitors Market risk and liquidity risks of the bank.

The Market risk is defined as potential charge in earnings due to change in rate of interest, foreign

exchange rates which are not of trading nature. ALCO reviews liquidity requirement of the Bank, the maturity of assets and liabilities, deposit and lending, pricing strategy and the liquidity contingence plan.

The primary objective of the ALCO is to monitor and avert significant volatility in Net Interest Income (NII), investment value and exchange earnings.

1.16 Segment reporting

The bank has only one reportable business segment and operation of the bank is within the geographical

territory of Bangladesh. Hence segment reporting in accordance with BFRS-8 “Operating Segment” is not

applicable.

1.17 Events after the balance sheet date

Events after the balance sheet date that provide additional information about the bank’s position at the balance sheet date are reflected in the financial statements. Events after the balance sheet date are not

adjusting event are disclosed in the notes when material.

1.18 Assets pledge as security

The bank has secured liability as mentioned in notes 12.01 and there was assets pledge as securities against liabilities.

1.19 Credit rating of the bank

As per the BRPD instruction circular no. 6 dated July 5, 2006, the bank has done its credit rating by the

Credit Rating Agency of Bangladesh (CRAB) based on the financial statements dated December 2010, the following rating has been awarded:

Date of rating Long term Short term

Entity Rating 23.06.2011 A1 ST-2

1.20 Internal Control and Compliance

Operational loss may arise from error and fraud due to lack of internal control and compliance.

Management through Internal control and compliance Division controls operational procedure of the

Bank. Internal control and compliance Division undertakes periodical and special audit of the branches and departments at Head Office for review of the operation and compliance of statutory requirement.

The Audit Committee of the Board subsequently reviews the reports of the internal control and compliance division.

1.21 Audit committee

The Audit committee of the Board of Directors of the Bank formed in accordance with Bangladesh Bank’s

BRPD circular Letter No. 12 dated 23 December 2002 with its members as under :

Sl.

No.

Name Status with

the Bank

Status with

the committee

Educational Qualifications

i)

ii) iii)

iv) v)

Mr. Mahbubul Alam Tara

Mr. Abdus Salam Mr. Ainul Kabir

Mr. Khairul Alam Chaklader Professor Shahid Uddin Ahmed

Director

Director Director

Director Director

Chairman

Member Member

Member Member

M.A. (Economics)

B.Sc. Engg. M.Sc.(Math)

B.Com. Ph.D.

During the period, the Audit committee of the Board conducted 03 (three) meetings in which among

others, the following issues where discussed:

- The committee studied Bangladesh Bank’s comprehensive inspection reports of branches as well as of Head Office accounts, reviewed compliance thereof and gave necessary instructions.

- The committee reviewed the audit and inspection reports of different branches as conducted by the

Bank’s internal Audit and Inspection Department from time to time and gave necessary instructions to the management.

- The Committee perused and noted Bangladesh Bank’s policy Circulars/ Circular Letters and other

listing regulations in force and gave necessary instructions.

2 Number of Employees

Number of Employees at June 30, 2011 was 1847; (2010:1865) who were in receipt of remuneration for

that year which in the aggregate was not less than Tk. 36,000 per annum and those employed for a part

of that year who were also in receipt of remuneration of not less than Tk.3,000 per month.

3 General

Figures appearing in these Financial Statements have been rounded off to the nearest Taka.

Previous year’s figures whenever considered necessary have been rearranged in order to conform to

current year’s presentation.

Stock of Travelers’ Cheques, Shanchaya patras are not reflected as Off-balance Sheet items in the Financial Statements.

June 30, 2011 December 31, 2010

Taka Taka

4 Cash in hand ( Including Foreign Currencies)

Local currency 758,535,254 722,585,828

Foreign Currencies 3,971,170 9,006,915

762,506,424 731,592,743

4(a) Consolidated Cash in hand

Cash in hand (Including Foreign Currencies)

NCC Bank Limited (Note-4 ) 762,506,424 731,592,743

NCCB Securities and Financial Services Limited 5,948 -

762,512,372 731,592,743

5 Balance with Bangladesh Bank and its agent bank(s)

Local currency 4,503,491,172 5,125,603,170

Foreign currencies 345,528,072 88,116,919

4,849,019,244 5,213,720,089

Sonali Bank Ltd. as agent of Bangladesh Bank ( Local Currency )-note 5.1 244,072,156 286,294,421

5,093,091,400 5,500,014,510

5.1 Sonali Bank Ltd. as agent of Bangladesh Bank ( Local Currency )

Cox's Bazar Branch 11,472,602 43,200,925

Feni Branch 24,999,826 15,531,864

Laxmipur Branch 15,222,152 18,081,375

Moulvibazar 179,621 3,023,615

Jessore Branch 52,500,085 30,092,311

Chaumuhani Branch 8,503,906 10,785,499

Madaripur Branch 4,813,971 1,782,075

Chakaria Branch 8,078,424 130,547

Comilla Branch 22,866,901 8,648,582

Joydevpur Branch 2,574,236 6,728,401

Mymensingh Branch 40,160,026 22,388,625

Tangail Branch 21,795,419 44,682,738

Naogaon Branch 6,565,294 7,593,288

Kushtia Branch 3,477,799 6,555,207

Narayangonj Branch 13,977,218 58,461,260

Brahmanbaria Branch 2,101,471 4,601,761

Narsingdi Branch 861,681 3,735,431

Maijdee Branch 3,921,524 270,917

244,072,156 286,294,421

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

Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) have been calculated and maintained in accordance with the Section 33 of the Bank

Companies Act 1991 and subsequent BCD Circular No.13 dated May 24, 1992; BRPD Circular No. 12, dated September 20, 1999, BRPD Circular No. 22

dated November 6, 2003, BRPD Circular No. 05 dated July 21, 2004 and DOS Circular no-06 March 23, 2005. BRPD Circular No. 11 & 12 dated 25

August 2005, MPD circular no. 116/2010-1712 & 04 dated December 2010.

The cash reserve requirement on the Bank's time and demand liabilities @ of 6% has been calculated and maintained with Bangladesh Bank in current

account and 19% Statutory Liquidity ratio including CRR on same liabilities has also been maintained in the form of treasury bills, treasury bonds and

debenture including FC balance with Bangladesh Bank. Both the reserves maintained by the Bank are in excess of the statutory requirements as shown

below:

June 30, 2011 December 31, 2010

Taka Taka

5.3 Cash Reserve Requirement ( CRR) 6% of average Demand and Time Liabilities:

Required Reserve 4,252,600,000 4,044,500,000

Actual Reserve held 4,503,491,172 5,125,603,170

Surplus/ (deficit) 250,891,172 1,081,103,170

5.4 Statutory Liquidity Ratio ( SLR) 19% of average Demand and Time Liabilities:

Required Reserve (including CRR) 13,101,700,000 12,792,100,000

Actual Reserve held (including CRR) 23,777,321,707 16,493,914,140

Surplus/ (deficit) 10,675,621,707 3,701,814,140

Total required reserve 13,691,100,000 12,792,100,000

Total actual reserve held 23,777,321,707 16,493,914,140

Total Surplus/(deficit) 10,086,221,707 3,701,814,140

6 Balance with other Banks and Financial Institutions :

In Bangladesh (Note -6.01 ) 167,227,212 331,517,804

Outside Bangladesh ( Note-6.2) 612,808,811 235,808,073

780,036,023 567,325,877

6.1 In Bangladesh

Current Accounts with

Sonali Bank Ltd. 36,168,399 21,505,633

ICB Islamic Bank Ltd. 589,173 600,023

Janata Bank Ltd. 14,749,453 13,340,763

IFIC Bank Ltd. 2,000 2,000

Uttara Bank Ltd. 240,555 242,055

Islami Bank Bangladesh Ltd. 11,374,804 589,849

Pubali Bank Ltd. 279,535 281,035

Commercial Bank of Ceylon 1,077,500 1,077,500

United Commercial Bank Ltd. 212,318 213,818

National Bank Ltd. - 540

Southeast Bank Ltd. 3,048 -

Standard Chartered Bank 6,531,777 5,140,451

Dutch Bangla Bank Ltd. 1,280,174 422,310

Agrani Bank Ltd. 8,420,905 398,228

Rupali Bank Ltd. 6,109,979 5,793,333

BRAC Bank Limited 539,964 -

87,579,584 49,607,538

Short-term Deposit Accounts

Janata Bank Ltd. 60,208 2,122,846

Dutch Bangla Bank Limited 1,184,969 1,084,969

1,245,177 3,207,815

Fixed Deposit Accounts with

ICB Islamic Bank Ltd. 20,902,451 21,202,451

National Bank of Pakistan - 100,000,000

Lanka Bangla Finance 20,000,000 70,000,000

BD Industrial Finance Co Ltd 37,500,000 37,500,000

International Leasing & Financial Services limited - 50,000,000

78,402,451 278,702,451

167,227,212 331,517,804

June 30, 2011 December 31, 2010

Taka Taka

6.2 Outside Bangladesh (NOSTRO Accounts)

Current Accounts (non-interest bearing) with:

Standard Chartered Bank, Singapore 939,553 533,754

Standard Chartered Bank, Japan 3,171,555 1,369,534

HSBC BANK N.Y - 8,944,497

Bank of Tokyo Mitsubishi, Japan 996,434 905,912

Myanma Investment & Co, Mayanmar 7,499,980 6,632,299

Bank of Tokyo Mitsubishi, Kolkata 7,405,000 7,035,000

American Express Bank, Colombo 24,541,579 26,800,395

BANCO ITAU 568,178 4,897,467

United Bank Ltd., Karachi 1,318,217 1,965,312

AXIS Bank Kolkata 3,970,945 6,462,083

Nepal Bangladesh Bank, Nepal 8,634,165 4,050,339

HSBC, Kolkata 4,499,645 18,888,751

Bank of Bhutan, Phuentsholing 2,452,358 4,060,432

Standard Chartered Bank, London - 1,469,082

Habib Metropoliton Bank 5,339,822 9,891,641

Uni Credio Italiano Spa 15,660,955 4,645,956

Commerrz Bank AG 1,964,731 1,041,928

UBAF,JAPAN 382,970 157,521

ICIC Bank, HKK 7,855,855 11,604,349

ICIC Bank, Kolkata 4,254,030 -

Wachovia NA 27,328,249 -

Nova Scotia Canada 8,564,322 3,803,014

137,348,543 125,159,266

Current Accounts (interest bearing) with:

Standard Chartered Bank, New York 234,082,216 81,801,661

Standard Chartered Bank, London 54,786,451 -

Citi Bank NA 81,840,880 -

Mashreq Bank ,New York 104,750,721 28,847,146

475,460,268 110,648,807

612,808,811 235,808,073

Annexure 'B' may kindly be seen for details

6.3

Payable on demand 700,388,395 285,415,611

Up to one month 21,245,177 153,207,815

Over one month but not more than three months - 70,000,000

Over three months but not more than six months 37,500,000 37,500,000

Over six months but not more than one year - -

Over one year but not more than five years 20,902,451 21,202,451

Over five years - -

780,036,023 567,325,877

6(a) Consolidated Balance with other Banks and Financial Institutions

In Bangladesh

NCC Bank Limited (Note-6.1 ) 167,227,212 331,517,804

NCCB Securities and Financial Services Limited 3,223,083 -

170,450,295 331,517,804

Out side Bangladesh

NCC Bank Limited (Note-6.2 ) 612,808,811 235,808,073

NCCB Securities and Financial Services Limited - -

612,808,811 235,808,073

783,259,106 567,325,877

Balance with other banks and financial institutions (according to remaining

maturity grouping) Payable :

June 30, 2011 December 31, 2010

Taka Taka

7 Money at Call and short notice :

- -

- -

- -

8 Investments :

17,921,723,883 10,262,306,887

715,279,898 718,501,349

18,637,003,781 10,980,808,236

i) Investment classified as per Bangladesh Bank Circular

Held for trading (HFT) 11,380,941,926 7,177,654,429

Held to maturity (HTM) 6,533,916,457 3,079,216,458

Other Securities 729,616,850 739,374,266

18,644,475,233 10,996,245,153

a) Government Securities:

Treasury bills:

91 days Treasury bills 318,927,649 -

182 days Treasury bills 1,526,703,960 -

364 days Treasury bills 1,580,330,857 139,030,051

3,425,962,466 139,030,051

Treasury bonds:

5 years Treasury bonds 4,158,228,891 2,072,930,847



20 years Treasury bonds 1,599,019,925 764,858,498

14,488,895,917 10,117,840,836

Prize Bonds 6,865,500 5,436,000

17,921,723,883 10,262,306,887

b) Other investments:

Zero Coupon Bonds 198,110,683 119,296,471

Other Bonds - 100,000,000

Beximco Pharmaceuticals (Debenture ) 60,570 60,570

Investment in shares (Note 8.3) 615,942,668 514,498,115

Less: Provision for diminution in the market value of shares (Note-8.1) (98,834,023) (15,353,807)

517,108,645 499,144,308

715,279,898 718,501,349

18,637,003,781 10,980,808,236

8.1 Provision for Investment fluctuation in shares

Opening Balance 15,353,807 14,589,758

Add: Provision made during the year 83,480,216 764,049

Less: Provision amount Transferred to P/Loss A/c - -

Less: Adjusted during the year - -

Closing Balance 98,834,023 15,353,807

Banking Company

Non-banking financial institutions

Government Securities-Note 8(a)

Other Investments-Note 8(b)

June 30, 2011 December 31, 2010

Taka Taka

8.2 Maturity grouping of investments

Demand 290,195,753 238,091,108

Up to one month 787,357,102 -

Over one month but not more than three months 1,173,140,531 19,401,385

Over three months but not more than six months 560,823,217 -

Over six months but not more than one year 1,373,670,223 139,029,911

Over one year but not more than five years 4,690,881,759 2,292,227,318

Over five years 9,760,935,196 8,292,058,514

18,637,003,781 10,980,808,236

8.3 Investment in Share:

Quoted:

Agrani Insurance Ltd 9,794,937 8,738,938

Prime Textile Spinning Mills Ltd. 300,000 300,000

Olympic Industries Ltd. 511,650 511,650

Asia Insurance Ltd. 6,399,750 6,137,650

Al-Arafa Islami Bank Ltd. 29,564,701 26,719,575

Bata Shoe Co. (BD) Ltd. 3,008,892 3,008,892

BSRM Steel Ltd. 6,736,541 4,599,429

Eastern Cables Ltd. 277,852 277,852

DBH 1st Mutual Fund - 4,000,000

National Bank Limited 5,061,712 5,984,195

Eastland Insurance Ltd 11,650 11,650

Green Delta Insurance Co. 7,484,686 2,691,070

Bangladesh Auto Cars Ltd. 223,932 223,932

Eagle Star Textile Mills Ltd. 4,227,951 4,227,951

Bank Asia Ltd 5,150,550 -

Exim Bank Ltd 337,500 337,500

Bay Leasing & Investment 42,620,962 -

Premier Leasing Ltd. 13,681 13,681

Summit Power Ltd. 12,635,358 12,919,344

MBL 1st Mutual Fund 10,000,000 -

IDLC 11,685,708 9,255,159

SEBL 1st Mutual Fund 10,000,000 -

Green Delta Mutual Fund 10,000,000 -

Prime Bank Ltd. 11,223 99,825

Lanka Bangla Finance Ltd. 8,781,367 3,444,450

Uttara Bank Ltd. 934,833 934,833

Arab Bangladesh Bank Ltd 1,562,905 870,280

ICB Islami Bank Ltd. 5,490,645 5,490,645

DESCO Ltd. 9,945,178 9,945,178

Jamuna Bank Ltd. 8,509,524 3,730,599

Meghna Petroleum Ltd. 3,292,656 3,292,656

Power Grid Co. Ltd. 2,004,763 -

Pubali Bank Limited 24,453,435 18,277,987

Balance Carried forward 241,034,542 136,044,921

June 30, 2011 December 31, 2010

Taka Taka

Balance brought forward 241,034,542 136,044,921

Square Pharma - 11,400,286

Standard Bank Ltd. 114,448 1,211,893

Fareast Life Insurance Ltd. 704,400 -

Islami Bank Bangladesh Ltd. 56,132 757,781

Navana CNG Ltd. 17,923,420 17,923,420

Grameenphone Ltd. 7,206,040 6,053,665

Summit Alliance Port Ltd. 7,806,380 7,806,380

Square Textiles Ltd 9,368,665 8,040,555

Titas Gas Transmission 13,350,279 2,788,029

South East Bank Ltd. 37,868,869 35,577,269

Khulna Power Co. Ltd. 2,471,700 2,471,700

Laferge Surma Cement 3,504,400 3,504,400

Ocean Containers Ltd. 2,325,945 2,325,945

RAK Ceramics Ltd. 3,046 2,184,864

Karnaphuly Insurance Ltd. 1,701,470 -

Shahjalal Islami Bank Ltd. 7,655,725 -

Bangladesh General Insurance Co. 758,000 -

Peoples Leasing and Finance 28,250,245 -

382,103,706 238,091,108

Un- quoted:

CDBL 8,833,340 2,000,000

Dhaka Stock Exchange Ltd - 400,385

Venture Investment Partner Bangladesh Ltd. 18,000,000 18,000,000

Swift 991,199 991,199

Dhaka Vegetable Oil Industries Ltd. 7,448,523 7,448,523

Chittagong Stock Exchange Ltd. - 19,001,000

Summit Uttaranchal PCL 17,000,000 17,000,000

Summit Purbanchal PCL 25,500,000 25,500,000

Nccbl Mutual Fund-1 150,000,000 150,000,000

Summit Power Ltd 1,900,000 1,900,000

SEBL 1st Mutual Fund - 10,000,000

MBL 1st Mutual Fund - 10,000,000

Green Delta Mutual Fund - 10,000,000

Dun & Bradstreet Rating Agency 4,165,900 4,165,900

233,838,962 276,407,007

615,942,668 514,498,115

8(c) Consolidated Investments

Government Securities

NCC Bank Limited (Note-8.a ) 17,921,723,883 10,262,306,887

NCCB Securities and Financial Services Limited - -

17,921,723,883 10,262,306,887

Other Investments

NCC Bank Limited (Note-8.b ) 715,279,898 718,501,349


734,681,283 718,501,349

18,656,405,166 10,980,808,236

June 30, 2011 December 31, 2010

Taka Taka

9 Loans and Advances

Loans,Cash Credits,Overdrafts etc.(Note-9.01) 63,486,428,450 59,632,249,645

Bills Purchased and Discounted (Note-9.2) 3,203,103,128 3,597,891,983

66,689,531,578 63,230,141,628

9.1 Loans, Cash Credits, Overdrafts etc.

Inside Bangladesh:

Overdraft 12,342,338,619 11,690,527,439

Cash credit 10,828,853,618 9,710,795,572

Loan - general 6,678,709,113 6,285,091,051

Transport loan 393,249,033 399,830,254

House building loan 1,566,535,685 1,508,750,926

Loan against trust receipt 12,161,064,093 11,535,188,764

Loan against Imported Merchandise 84,873,102 64,152,677

Loan against Investment 10,480 10,500

Loan against packing credit 169,746,455 164,860,309

Project loan 158,758,405 297,487,398

Demand loan 1,074,075 12,380,294

Lease Finance 1,169,362,502 964,245,222

Payment against document 2,124,279,897 2,104,825,226

Consumer Finance Scheme 1,210,483 1,333,336

Housing Loan under B.Bank Refinance Scheme 38,939,883 41,309,112

Loan Revolving 384,266 1,037

Staff Loan 515,087,873 518,377,438

Small Business Loan 840,531,456 810,803,851

House Renovation Loan 78,962,653 91,676,699

Personal Loan Scheme 14,215,082 16,379,763

Term Loan (Small,Medium & Large) 11,325,083,396 10,726,234,410

Agri Credit 244,619,007 269,576,890

Festival Loan 62,686,800 73,869,925

Special Housing Loan 1,037,238,441 1,046,796,732

Credit Card 229,370,491 215,541,374

Forced Loan 580,056,360 538,085,843

Short Term Loan 809,009,674 534,572,412

Retail Loan 14,938,109 5,520,772

NCCB- Garments wear & Foot wear Cluster 14,003,741 -

Education Loan Scheme 1,235,658 4,024,419

63,486,428,450 59,632,249,645

Outside Bangladesh: - -

63,486,428,450 59,632,249,645

9.2 Bills Purchased and Discounted

Inside Bangladesh:

Inland bills purchased 10,498,724 2,310,763

Local documentary bills purchased 2,997,448,647 3,379,320,119

3,007,947,371 3,381,630,882

Outside Bangladesh:

Foreign bills purchased 10 10

Foreign documentary bills purchased 195,155,747 216,261,091

195,155,757 216,261,101

3,203,103,128 3,597,891,983

66,689,531,578 63,230,141,628

June 30, 2011 December 31, 2010

Taka Taka

9.3 Net Loans and Advances

Gross Loans and Advances 66,689,531,578 63,230,141,628

Less: Non-performing loans and advances 3,225,499,000 1,425,280,000

Interest suspense 302,895,611 265,448,405

3,528,394,611 1,690,728,405

63,161,136,967 61,539,413,223

9.4

Repayable on demand 581,130,435 550,466,137

Up to one month 12,889,850,206 11,746,721,943

Over one month but not more than three months 13,953,936,557 13,704,166,666

Over three months but less than one year 26,058,084,555 21,673,219,120

Over one year but less than five years 7,974,092,997 9,646,426,492

Above five years 5,232,436,828 5,909,141,270

66,689,531,578 63,230,141,628

9.5

In Bangladesh :

Loans 40,315,236,213 38,230,926,634

Cash credit 10,828,853,618 9,710,795,572

Overdraft 12,342,338,619 11,690,527,439

Bills Purchased & Discounted 3,007,947,371 3,381,630,882

66,494,375,821 63,013,880,527

Outside Bangladesh (Bills Purchased & Discounted) 195,155,757 216,261,101

66,689,531,578 63,230,141,628

9.6

69,195,000 52,966,452

II) Advances to customers' group-wise clients

a) Import Financing 5,617,187,482 5,556,397,235

b) Export financing 6,190,348,198 3,779,699,125

c) House Building Loan 2,565,180,324 2,757,288,562

d) Consumers credit scheme 306,332,000 307,448,468

e) Small and Medium Enterprise (SME) 9,480,139,000 8,940,710,658

f) Special program loan 136,164,291 129,856,422

g) Staff Loans 515,087,873 518,377,437

h) Others 1,960,469,667 1,729,558,158

26,770,908,835 23,719,336,065

III) Industrial loans

a) Agriculture 545,275,125 525,903,854

b) Industry 25,098,857,572 25,844,987,354

c) Construction 1,432,658,038 1,117,858,587

d) Transport and Communication 421,114,852 400,329,681

e) Storage 293,002,198 300,657,328

f) Business 11,833,929,829 11,053,962,349

g) Others 224,590,129 214,139,958

39,849,427,743 39,457,839,111

66,689,531,578 63,230,141,628

I) Advances to allied concerns of Directors of the Bank

Residual maturity grouping of loans and advances including bills purchased and

discountedbills purchased and discounted

the following broad categories

including bills purchased and discounted classified into

Loans and advances on the basis of significant concentration

Loans and advances including bills purchased and

discounted classified into the following broad categories

June 30, 2011 December 31, 2010

Taka Taka

9.7

9 6

15,225,300,000 8,714,500,000

- -

Measures taken for recovery - -

Annexure 'D' may kindly be seen for details.

9.8 Loans and advances on the basis of geographical location wise

Urban

Dhaka Division 43,609,076,877 40,954,241,178

Chittagong Division 16,432,400,002 16,179,816,277

Rajshahi Division 682,738,436 756,552,665

Rangpur Division 429,730,409 396,806,030

Sylhet Division 601,397,884 618,250,060

Khulna Division 1,897,879,403 1,676,883,941

Barisal Division 3,498,805 -

63,656,721,816 60,582,550,151

Rural

Dhaka Division 775,752,370 749,305,306

Chittagong Division 1,272,374,058 927,209,872

Rajshahi Division 88,752,556 46,712,852

Rangpur 601,718,477 554,424,632

Sylhet Division 294,212,301 369,938,815

Khulna Division - -

Barisal - -

3,032,809,762 2,647,591,477

66,689,531,578 63,230,141,628

9.9 Classification of Loans and advances

Unclassified Standard (including staff loans) 63,185,559,578 60,634,171,628

Unclassified Special Mention Account 278,473,000 1,170,690,000

Sub-standard 1,028,729,000 143,404,000

Doubtful 474,540,000 60,831,000

Bad/Loss 1,722,230,000 1,221,045,000

66,689,531,578 63,230,141,628

9.10 Particulars of loans and advances

i) 54,307,695,334 51,895,056,119

ii) 7,529,248,115 7,137,073,880

iii) 4,852,588,129 4,198,011,629

iv) - -

66,689,531,578 63,230,141,628

Loans considered doubtful or bad not provided for.

Amount of outstanding Advances

Loans considered good for which the bank holds no other security than the debtor's personal

security.

Loans considered good and secured by the personal security of one or more parties in

addition to the personal security of the debtors.

Number of clients with outstanding amount and classified Loans and advances

exceeding 10% of total capital of the Bank.

Number of the clients

Amount of classified advances

Loans considered good in respect of which the bank is fully secured.

June 30, 2011 December 31, 2010

Taka Taka

* v) 515,087,873 518,377,438

vi)

69,195,000 52,966,452

vii)

515,087,873 518,377,438

viii)

69,195,000 52,966,452

ix) Due from banking companies - -

x) 3,225,499,000 1,425,280,000

a) Increase/(decrease) of provision (specific) during the year 594,298,001 22,578,000

* Amount represents loans to employees of the Bank only.

b) Amount of provision kept against the amount classified 1,050,490,000 703,841,000

as bad/loss at the Balance Sheet preparing date.

c) Amount of interest charged in interest suspense account 303,702,690 265,448,405

xi) Cumulative amount of written off debt

Opening balance as on 1 January 2,085,206,013 1,658,506,255

Add: Amount of debt written off during the Period - 426,699,758

Closing balance as on 30 June 2,085,206,013 2,085,206,013

xii) Amount of written off debt against which law suit has

been filed for its recovery during the period - 91,112,193

9.11 Outstanding Bad & Loss Loans to be Written off

9.12 Bills purchased and discounted:

a) Payable:

In Bangladesh 3,007,947,371 3,381,630,882

Outside Bangladesh 195,155,757 216,261,101

3,203,103,128 3,597,891,983

Bangladesh Bank issued a circular no.02 dated 13 January 2003 instructing all the banks in the country to write off bad & loss loans

which have passed five years after its classification and legal actions have been taken against all those default borrowers with an

immediate effect. In compliance with the circular, the Bank formed a Debt Collection Unit in its Head Office from where monitoring

has been made accordingly. During the period, the Bank not allowed write off against which legal actions have not been lying with

the money suit court. In this connection, branches have been maintaining separate ledger for all individual cases. The debt collection

unit will follow-up the realisation of such debts in future also and time to time a progress report to be given to the management by

the branches.

Debts due by directors or officers of the bank or any of them either severally or jointly with

any other persons.

Debts due by companies or firms in which the directors of the Bank are interested as

directors, partners or managing agent or in case of private companies as members.

Maximum total amount of advances, including temporary advances made at any time during

the year to directors or managers or officers of the bank or any of them either severally or

jointly with any other persons.

Maximum total amount of advances, including temporary advances, granted during the year

to the companies or firms in which the directors of the bank are interested as directors,

partners or managing agents or, in case of private companies as members.

Classified loans for which interest/profit not credited to income

June 30, 2011 December 31, 2010

Taka Taka

b) Bills purchased & discounted on the basis of the residual

maturity grouping

Payable:

Within one month 361,765,000 1,088,654,000

Over one month but less than three months 1,984,366,272 1,870,965,000

Over three months but less than six months 855,995,856 619,961,000

Over six months 976,000 18,311,983

3,203,103,128 3,597,891,983

9(i) Consolidated Loans and Advances

Loans, Cash Credits, Overdrafts etc.(Note-9.1)

NCC Bank Limited 63,486,428,450 59,632,249,645

NCCB Securities and Financial Services Limited. 2,823,976,005 -

66,310,404,455 59,632,249,645

Less : Loan to NCCB Securities and Financial Services Limited. 2,429,407,250 -

63,880,997,205 59,632,249,645

Bills Purchased and Discounted (Note-9.2)

NCC Bank Limited 3,203,103,128 3,597,891,983

Less : Loan to NCCB Securities and Financial Services Limited. - -

3,203,103,128 3,597,891,983

67,084,100,333 63,230,141,628

10 Fixed assets including premises, furniture and fixtures

Cost/valuation

Land 452,423,608 413,139,440

Structure ( on land II) 414,335,133 414,335,133

Furniture and fixtures 276,563,556 236,983,642

Machinery and Equipment 453,704,669 388,912,606

Vehicles 65,316,801 68,915,337

Total Cost / Valuation 1,662,343,767 1,522,286,158

Less: Accumulated depreciation 371,368,248 330,792,968

Net book value at the end of the year 1,290,975,519 1,191,493,190

Annexure 'A' may kindly be seen for details.

10(a) Consolidated Fixed Assets including premises,furniture and fixture

NCC Bank Limited (Note-10) 1,290,975,519 1,191,493,190

Less : Fixed Assets in Subsidiaries Company (15,523,731) -

1,275,451,788 1,191,493,190


1,290,131,972 1,191,493,190

11 Other Assets

Stationery in hand 25,429,470 16,538,351

Stamps and stamped forms in hand 1,683,243 1,386,944

Security deposits 1,750,789 1,662,909

Advance against rent 92,143,297 88,740,104

Suspense account (Note 11.1 ) 64,311,732 82,735,210

Commission receivable 48,628,955 2,350,000

Dividend receivable - 1,017,660

Interest receivable ( Note 11.2 ) 428,869,132 229,539,391

Prepaid Expense(Soft ware) 25,962,156 18,441,288

Others ( Note 11.3 ) 516,416,229 704,016,029

Balance carried forward 1,205,195,003 1,146,427,886

June 30, 2011 December 31, 2010

Taka Taka

Balance brought forward 1,205,195,003 1,146,427,886

Discount receivable 8,104,396 6,917,890

Prepaid Expenses 261,410 41,500

ATM Adjustment 126,717 162,217

Visa Local 399,938 -

Building Construction 191,197,688 153,320,691

Investment in Subsidiary 250,000,000 -

Receivable from sale proceeds of Share 65,922,968 45,931,185

1,721,208,120 1,352,801,369

11.1 Suspense Account

Encashment Shanchaypatra awaiting realisation 29,425,401 35,055,088

DD cancelled 44,600 23,600

Cash Remittance 11,439,168 28,171,886

DD paid without advice 7,547,254 6,516,705

Clearing adjustment 15,855,309 12,967,931

64,311,732 82,735,210

11.2 Interest receivable :

On loans and advances 12,662,958 -

On Treasury Bill/Bond 415,080,341 223,370,640

On bank balances/Financial Institutions 1,125,833 6,168,751

428,869,132 229,539,391

11.3 Others

Advance against TA/DA 442,167 43,055

Legal expenses 253,259 236,109

Waiver of interest 4,404 4,404

Money Gram 29,113,977 29,622,649

Proposed Branches expenses 648,100 4,626,100

Prefunding to TMSS 15,312,115 19,177,949

Zenj Exchange 797,755 883,966

T.C. Buying 21,000 98,626

UAE Exchange 1,530,618 1,985,208

Sundry debtors 370,884,313 569,231,642

Foreign Remittance Payment Project 4,997 -

Protested bill 2,245,789 2,245,789

Prefunding to Foreign Remittance 2,110,326 2,125,020

Xpress Money 4,627,214 8,159,443

Al-Fardan Exchange Co.L.L.C 17,223,924 11,775,203

Habib Quarter 1,793,748 2,006,103

Placid Express 5,748,621 2,674,163

Arab National Bank (KSA) 1,489,137 3,237,877

Advance against Salary 32,000 -

Wall Street 373,319 411,000

First Solution U.K. - 13,060

Kay Maks International 281,900 8,000

Majan Exchange - 3,000

IME (M) SDN.BHD. 1,605,598 -

Three Star 35,173 -

Federal Exchange 21,000 -

Al Zaman Exchange 19,851 -

Repo Adjustment account - 38,563

Advance for booking money agt.DSE Tower 850,000 850,000

Advance for Purchase of Bank Property 58,862,814 44,559,100

Others 83,110 -

516,416,229 704,016,029

June 30, 2011 December 31, 2010

Taka Taka

11(a) Consolidated other Assets


Less : Investment in Subsidiary Company (249,999,900) -

Less : Other transaction in Subsidiary Company (45,578,955) -

1,425,629,265 1,352,801,369


1,449,445,210 1,352,801,369

12 Borrowing from other Banks, Financial Institutions and agents

in Bangladesh

Bangladesh Bank 1,495,304,191 1,570,189,614

SME Foundation 20,000,000 -

South East Bank Ltd 300,000,000 -

Citi Bank NA 30,000,000 -

Standard Chartered Bank 500,000,000 -

State Bank of India 70,000,000 -

Habib Bank Ltd 100,000,000 -

Pubali Bank Ltd. 250,000,000 -

Commercial Bank of Cylon 140,000,000 -

United Commercial Bank Ltd. 100,000,000 -

The Trust Bank Ltd 1,474,887 915,952

3,006,779,078 1,571,105,566

Outside Bangladesh:

ICICI Bank, Kolkata - 31,171,190

Standard Chartered Bank, London 7,698,430 379,250

Mashreq Bank Kolkata 14,640 139,259,404

Standard Chartered Bank, Kolkata 8,965,872 56,549,653

WACHOVIA NA - 15,104,584

Citi Bank NA - 33,459,049

HSBC Bank , New York 1,355,925 -

18,034,867 275,923,130

3,024,813,945 1,847,028,696

Annexure 'C' may kindly be seen for details.

12.01 Security against borrowings from other banks, financial institutions and agents:

Secured 3,005,304,191 1,570,189,614

Unsecured 19,509,754 276,839,082

3,024,813,945 1,847,028,696

1.00

On demand 1,509,509,754 276,839,082

In not more than three months 58,126,617 40,459,366

In more than three months but not more than one year 142,228,627 155,972,593

In more than one year but not more than five years 1,003,173,138 990,820,544

Above five Years 311,775,809 382,937,111

3,024,813,945 1,847,028,696

13 Deposits and other Accounts

Current deposits and other accounts

Current deposits 4,458,646,708 4,967,282,085

Sundry deposits (note 13.4) 3,306,927,479 2,776,641,149

7,765,574,187 7,743,923,234

Borrowings from other banks, financial institutions and agents (according to

remaining maturity grouping) Payable :

June 30, 2011 December 31, 2010

Taka Taka

Saving deposits 7,571,500,817 7,477,106,648

Fixed deposits 43,495,868,872 39,313,895,416

Term deposits

Short term deposits 6,091,840,130 3,322,195,044

Special savings scheme 5,960,430,215 5,312,740,230

Special deposit scheme 1,368,604,180 1,109,703,942

Premium term deposits 163,722,246 151,042,003

Instant earning term deposits 2,000,399 900,000

Money Double Program 3,030,162,494 2,518,357,880

16,616,759,664 12,414,939,099

13.1 Bills Payable:

Payment Order (issued) 881,385,150 922,749,305

Pay slip 2,988 2,988

Demand draft 138,540,066 88,628,087

1,019,928,204 1,011,380,380

76,469,631,744 67,961,244,777

13.2 (a) Demand deposits

From other banks - -

Other than banks 9,361,128,671 9,428,243,212

9,361,128,671 9,428,243,212

13.2 (b) Other deposits:

From other banks

In Fixed Deposits Accounts:

Sonali Bank Limited 500,000,000 500,000,000

Bangladesh Development Bank Limited 75,000,000 70,000,000

575,000,000 570,000,000

Other than banks 66,533,503,073 57,963,001,565

76,469,631,744 67,961,244,777

13.3(a) Residual maturity grouping of Deposits:

From other Banks

Payable:

On demand - -

- -

In more than one month but less than six months 575,000,000 570,000,000

In more than six months but less than one year - -

In more than one year but within five years - -

In more than five years but within ten years - -

575,000,000 570,000,000

13.3 (b) From other than Banks

Payable:

On demand 9,361,128,671 9,428,243,212

5,827,612,809 8,481,537,217

In more than one month but less than three months 14,962,732,344 14,636,233,461

In more than three months but less than one year 25,687,441,247 19,167,408,026

In more than one year but within five years 12,189,220,960 8,006,304,707

In more than five years but within ten years 7,866,495,713 7,671,518,154

75,894,631,744 67,391,244,777

76,469,631,744 67,961,244,777

Within one month

Within one month

June 30, 2011 December 31, 2010

Taka Taka

13.4 Sundry Deposits

Sundry Creditors 181,705,001 118,844,583

Clearing adjustment 100 -

Margin on letters of guarantee 518,004,789 514,121,302

Margin on letters of credit 971,611,728 750,596,856

Security deposits against locker 15,806,872 9,693,520

Foreign correspondents charge 1,755,701 111,987

Credit balance in CC,SOD,Loan etc. 105,251,079 187,088,752

Collection Account 20,114,374 15,625,037

Sanchaypatras 17,407,363 6,013,625

Money Gram 67,184,786 74,447,224

LDBP, Export bill/ proceeds 1,069,011,893 658,033,249

Security deposit Receipts 35,907,419 123,579,411

U.A.E.Exchange 4,696,001 12,712,680

Placid Express 2,793,415 1,619,548

FC,FCY Retention Quota 73,814,772 52,218,326

Cash Risk Allowance/Fund 60,667,998 44,462,120

Majan Exchange 4,166,243 1,334,763

Three Star Remittance 439,369 978,929

Federal Exchange 2,436,560 7,138,134

Advance Rent on Lease Finance 21,731,221 19,591,378

First Solution money transfer 2,834,377 2,816,003

Al-Fardan exchange Co.L.L.C. 8,664,206 6,046,049

Habib Qatar 799,989 760,461

K.M. Financial Services London 9,664,084 1,242,325

Arab National Bank (KSA) 68,508,049 106,460,770

Wall Street Exchange 3,086,177 11,233,042

Dhaka Janata Express 4,224,158 5,441,301

Visa Credit Card 242,810 406,268

Foreign remittance 2,746,806 17,557,057

Retained Comm.from Remittance 413,438 1,000,000

Provident Fund 3,913,762 3,442,599

Credit Card Deposit A/c. 1,250,783 2,694,309

Alt.Cash Assistance 6,458,475 (34,525)

Zenj Exchange 3,504,771 1,805,710

Itau Unibanco.S.A - 309,578

National Exchange Co. 4,894,538 4,531,787

IME(M) SDN.BHD 4,268,385 6,290,955

Al Zaman Exchange 1,311,516 5,324,322

Transmit International Inc. USA 3,429,974 -

Al Mulla International Exchange 814,438 -

Others 1,389,959 1,101,714

Unclaimed Block Account for 10 years & above 100 -

3,306,927,479 2,776,641,149

13 (C) Consolidated Deposits and other Accounts

Current deposits and other accounts


44,727,630 -

7,810,301,817 7,743,923,234

NCCB Securities and Financial Services Limited

June 30, 2011 December 31, 2010

Taka Taka

Bills Payable

NCC Bank Limited (Note-13.1) 1,019,928,204 1,011,380,380

- -

1,019,928,204 1,011,380,380

Savings Bank Deposits


- -

7,571,500,817 7,477,106,648

Fixed Deposits


- -

43,495,868,872 39,313,895,416

Term Deposits


- -

16,616,759,664 12,414,939,099

76,514,359,374 67,961,244,777

14 Other Liabilities

Outstanding interest 1,665,425,496 1,050,474,409

Excise duty on loan 916,123 15,656,123

Excise duty on deposit 8,783,736 43,866,064

Special reserve of garments accounts 19,169,248 12,390,230

Provisional for Expenses 2,390,586 2,558,886

Audit fee payable - 150,000

Income tax deduction at source on interest 24,077,194 26,240,653

Advance tax deducted at source 7,479,426 1,073,164

Staff Income tax 555,633 692,853

Inter Branch Transaction Account 346,668,971 363,458,684

Stamp 33,469 22,224

Deduction of VAT on LC commission and Service Charge 13,520,917 15,718,121

Provision for loans and advances (Note 14.4 ) 2,028,500,001 1,483,115,000

Provision on Off balance sheet items (Note-14.5) 195,301,615 174,925,506

Interest Suspense (Note 14.7 ) 303,702,690 265,448,405

Provision for Other Assets ( Note 14.2) 22,065,048 13,872,632

Provision for Income tax ( Note 14.3) 679,500,497 672,855,396

Provision for deferred tax liabilities ( Note 14.3.1) 12,683,303 67,216,207

Exchange Equalization Reserve ( Note 14.1) - -

Reserve for Unforeseen loss 10,325,284 8,704,738

Provision for Gratuity (Note-14.9) - 59,032,636

Contribution to NCC Bank Foundation (Note-14.8) - 16,322,766

Provision for incentive Bonus 95,000,000

5,341,099,237 4,388,794,697

14(a) Consolidated Other Liabilities


17,998,306 -

5,359,097,543 4,388,794,697






June 30, 2011 December 31, 2010

Taka Taka

14.1 Movement in Exchange Equalization Account

Opening Balance - 465,514

Adjusted during the period - (465,514)

Closing balance - -

14.2 Provision for other Assets:

Opening Balance 13,872,632 18,348,000

Add: Provisions made during the period 8,192,416 -

Less: Provisions no longer required - (4,475,368)

Closing balance 22,065,048 13,872,632

14.3 Provision for Income Tax:

Opening Balance 1,157,075,620 2,406,833,505

Add: provision made for current tax 704,171,709 1,057,110,305

Prior years tax - 25,886,372

704,171,709 1,082,996,677

1,861,247,329 3,489,830,182

Less: Adjusted during the period - 2,332,754,562

Closing Balance 1,861,247,329 1,157,075,620

Advance tax at source on treasury bills/ bonds 112,009 112,009

Advance tax at source on bank interest & dividend 12,462,168 5,345,646

Advance income tax deposited by Bank 1,157,893,047 472,139,446

5% Advance income tax paid on L/C commission 11,279,608 6,623,123

1,181,746,832 484,220,224

Net balance at 31 March 2011 679,500,497 672,855,396

14.3.1 Consolidated Provision for Income Tax:

Opening Balance 1,157,075,620 2,406,833,505

Add : Provision made for NCC Bank Limited 704,171,709 1,082,996,677

Add : Provision made for NCCB Securities and Financial Services Limited. 20,854,643 -

725,026,352 3,489,830,182

Less: Adjusted during the period - 2,332,754,562

1,882,101,972 1,157,075,620

NCC Bank Limited 1,181,746,832 484,220,224


1,190,708,500 484,220,224

691,393,472 672,855,396

14.3.2 Deferred tax (Assets)/ Liabilities

Deferred tax Assets

Opening Balance - -

Addition during the period (334,904,743) -

Adjustment made during the period - -

Closing balance (334,904,743) -

Deferred tax Liabilities

Opening Balance 30,771,267 237,216,207

36,444,940 36,444,940

67,216,207 273,661,147

280,371,839 -

347,588,046 273,661,147

Adjustment made during the period - (206,444,940)

347,588,046 67,216,207

12,683,303 67,216,207

Deferred tax (54,532,904) -

Less: Advance income tax paid and deducted at source

Add: Provision for revaluation reserve on Lands

Addition during the period

Less: Advance income tax paid and deducted at source

Net Deferred tax (Assets)/ Liabilities

June 30, 2011 December 31, 2010

Taka Taka

14.4 Provision for Loans and Advances

a) Movement in specific provision on classified loans and advances

Opening balance 742,802,000 720,224,000

Fully provided debt written off (4,165,428) (378,883,352)

Add: Recoveries of amounts previously written off 25,529,011 9,769,106

Net charged to Profit and Loss Account 572,934,418 391,692,246

Provision held at the end of the period 1,337,100,001 742,802,000

b) Movement in general provision on unclassified loans and advances

Opening balance 740,313,000 509,672,000

- 230,641,000

Less: Provisions no longer required (48,913,000)

691,400,000 740,313,000

Total (a) + (b) 2,028,500,001 1,483,115,000

14.5 Provision on off-balance sheet items

Opening balance 174,925,506 111,928,000

20,376,109 62,997,506

195,301,615 174,925,506

14.6 Provision for NOSTRO Accounts

Opening balance - -

- -

- -

14.7 Interest suspense account

Opening balance 265,448,405 230,367,473

Add: Amount transferred during the period 38,599,059 213,675,197

Less: Amount recovered during the period - (80,544,450)

(344,774) (98,049,815)

Closing balance 303,702,690 265,448,405

14.8

Opening balance 16,322,766 27,200,000

- 16,322,766

16,322,766 43,522,766

16,322,766 27,200,000

- 16,322,766

14.9

59,032,636 225,000,000

- 59,032,636

(59,032,636) (225,000,000)

- 59,032,636

15 Share Capital

15.1 Authorized Share Capital

1,000,000,000 ordinary shares @ of Tk. 10 each 10,000,000,000 10,000,000,000

15.2 Issued, Subscribed and Fully Paid-up Capital

39,000,000 Ordinary shares of Tk 10 each issued for cash 390,000,000 390,000,000

410,681,855 Ordinary shares of Tk 10 each issued as bonus 4,106,818,550 2,666,417,500

144,483,580 Ordinary shares of Tk 10 each issued as right share in Cash 1,444,835,800 1,444,835,800

5,941,654,350 4,501,253,300

Add: Provision made during the period

594,165,435 Ordinary shares of Tk 10 each

Less : Adjusted / transferred during the period

Contribution to NCC Bank Foundation (NCCBF)

Add: Contribution during the period

Provision for Gratuity

Closing Balance

Less: Adjusted/Transferred to STD account during the period


Opening Balance

Add: Provision made for the year/net charge in profit and loss account

Less: Amount written off during the period


June 30, 2011 December 31, 2010

Taka Taka

15.3 % of Shareholdings as on 30 June 2011

Particulars % of holdings

Local sponsors 40.92 2,431,272,080 1,873,519,000

Financial Institutions 14.57 865,535,490 697,792,000

Foreign Investors 0.32 19,019,200 15,091,400

Public issues 44.19 2,625,827,580 1,914,850,900

100.00 5,941,654,350 4,501,253,300

15.4 Range wise Shareholdings as on 30 June 2011

No. of Shares

83,805,434

22,527,005

18,157,595

8,974,308

5,250,280

5,643,557

16,950,896

17,458,630

11,776,410

10,964,739

8,992,004

44,403,471

244,856,106

94,405,000

594,165,435

15.5 Capital Adequacy Ratio (CAR)

Total assets including Off-Balance sheet items 114,721,984,267 101,048,042,176

Total Risk Weighted Assets 98,777,900,000 91,929,600,000

Required Capital ( 9% of Risk Weighted Assets) 8,890,011,000 8,273,664,000

Actual Capital Held: 10,843,328,981 10,033,986,280

Total Capital surplus/(deficit) 1,953,317,981 1,760,322,280

i) Core capital (Tier- i) (%) 9,692,580,035 8,880,386,166

Paid-up Capital 5,941,654,350 4,501,253,300

Minority Interest 133 -

Statutory Reserve 2,819,456,596 2,543,463,417

General Reserve 7,162,348 7,162,348

Surplus in Profit & Loss Account 924,306,608 1,828,507,101

ii) Supplementary capital (Tier- ii) (%) 1,150,748,946 1,153,600,114

General provision on Unclassified Loan 691,400,000 740,313,000

General Provision for Off-balance sheet Exposures 195,301,615 174,925,506

Revaluation Reserve on Govt. Securities 140,964,738 115,279,015

Assets Revaluation Reserve 123,082,593 123,082,593

Capital Adequacy Ratio :

Held

9.66%

1.25%

10.91%Total

300,001 to 400,000

287

89057

5,001 to 10,000

10,000,001 to 100,000,000

Capital requirement

Tier-I

Tier-II

1,000,001 to 10,000,000

500,001 to 1,000,000

400,001 to 500,000

30,001 to 40,000

40,001 to 50,000

200,001 to 300,000 39

99

196

121

Less than 5,000 14.11

% of shares

holding Range of holding of Shares No. of share holders

243,127,208

594,165,435

100,001 to 200,000

50,001 to 100,000

20,001 to 30,000

3.79

97

10,001 to 20,000

27

968

2369

0.95

2.85

3.06

0.88

2.94

1.51

1.98

19

1.85

Total 93420

15.89 7

9.00% 10.98%

100.00

Required

1.51

9.81%

1.16%

4.50%

4.50%

59

75 41.21

Held

7.47

No of share

86,553,549

1,901,920

262,582,758

June 30, 2011 December 31, 2010

Taka Taka

15.5.1

Sl. Outstanding

No. balance as Risk weights

at 30-06-2011 % 6/30/2011 12/31/2010

Taka Taka Taka

i Cash 762,506,424 0 0 0

ii Claims on Bangladesh Government and 11,389,801,201 0 0 0

Bangladesh Bank

iii Claims on other Sovereigns & Central Banks 0 0 0 0

iv Claims on Bank for International Settlements 0 0 0 0

International Monetary Fund and European

Central Bank

v. Claims on Multilateral Development Banks(MDBs) 0 0-150 0 0

vi. Claims on Public Sector Entities ( other than 0 50-125 0 0

Government) in Bangladesh

vii. Claims on Banks and NBFIs

915,374,307 20-150 915,400,000 658,352,451

3,119,910,284 20 624,000,000 660,011,989

viii. Claims on Corporate 35,971,600,000 20-125 43,785,000,000 40,362,800,000

ix. Claims under Credit Risk Mitigation 3,819,900,000 20-125 313,500,000 282,600,000

x. Claims categorized as retail portfolio and small 10,318,500,000 75 7,738,900,000 8,651,200,000

& medium enterprise (excluding consumer loan)

xi. Consumer Loan 306,300,000 100 306,300,000 307,400,000

xii. Claims fully secured by residential property 1,415,500,000 50 707,800,000 697,400,000

xiii. Claims fully secured by commercial real estate 3,485,400,000 100 3,485,400,000 3,376,000,000

xiv. Past due claims (net off specific provision) 2,171,200,000 50-150 2,785,000,000 2,831,400,000

xv. Capital Market Exposures 2,823,976,005 125 3,530,000,000 4,422,600,000

xvi Unlisted equity investments and regulatory 451,411,600 125 564,300,000 582,100,000

Capital instruments issued by other banks

( Other than those deducted from capital)

held in the banking book

xvii. Investments in venture capital 150 0 0

xviii. Investments in premises,plant and equipment 1,290,131,972 100 1,290,100,000 1,191,600,000

and all other fixed assets

xix. Claims on all fixed assets under operating lease

xx All other assets 3,135,176,535 0-100 1,481,200,000 1,376,700,000

Total 81,376,688,328 67,526,900,000 65,400,164,440

Credit Risk-off-balance sheet assets

Sl. Notional Amount

No. Particulars Credit (Netting off margin Credit Risk weights As at As at

covertion and add on factor equivalent % 30-Jun-11 31-Dec-10

factor (CCF ) for exchange rate (Taka) (Taka)

fluctuation

i. Direct Credit Substitutes 100% 8,936,945,026 8,936,945,026

ii. Lending of Securities or

posting of securities as 100% 0 0

collateral

iii. Other commitments with 100% 0 0

certain drawdown

iv. Performance related 50% 4,233,306,192 2,116,653,096

Calculation of risk weighted assets (RWA)

Credit Risk - On balance sheet assets

Risk weighted assets

as atParticulars

Original maturity over 3 months

Original maturity less than 3 months

Risk weighted Assets

June 30, 2011 December 31, 2010

Taka Taka

contingencies

v. Commitments with original 50% 0 0 20-125 19,157,500,000 15,187,600,000

maturity of over one year

vi. Trade related contingencies 20% 7,547,200,000 1,509,440,000

vii. Commitments with original 20% 16,163,200,000 3,232,640,000

maturity of one year or less

viii. Other commitments that 0% 234,564,236 -

can be unconditionally

cancelled by any time

ix. Foreign exchange contract

Total 37,115,215,454 15,795,678,122 19,157,540,724 15,187,640,543

Risk weighted assets against Market Risk

Sl. Capital charge

No. Particulars (Taka ) As at As at

30-Jun-11 31-Dec-10

(Taka ) (Taka )

i. Capital charge for Interest rate risk 261,073,890 2,900,821,000 2,878,600,000

ii. Capital charge for Equities 52,294,770 581,053,000 597,700,000

iii. Capital Charge for Foreign Exchange position 84,991,500 944,350,000 197,800,000

iv. Capital charge for Commodities 0 0 0

Total 398,360,160 4,426,224,000 3,674,100,000

Risk weighted assets against Operational Risk

Gross Income

Year 1(2011) 0 0

Year 2(2010) 5,888,126,174 5,888,126,174

Year 3(2009) 4,466,532,530 4,466,532,530

Year 3(2008) 3,447,424,941 3,447,424,941

Total gross income 13,802,083,645 13,802,083,645

Average gross income 4,600,694,548 4,600,694,548

Capital charge @ 15% of average gross income 690,104,182 690,104,182

Risk weighted assets 7,667,557,462 7,667,557,462

Calculation of Gross income

Particulars Year 1(2011) Year 2(2010) Year 3(2009) Year 4(2008)

(Taka) (Taka) (Taka) (Taka)

Interest Income 0 6,970,010,528 6,487,768,688 5,449,728,058

Net interest suspense 0 213,675,197 94,242,982 129,765,099

Less : Interest Expenses 0 4,483,541,724 4,960,743,231 4,099,984,694

Net interest Income 0 2,700,144,001 1,621,268,439 1,479,508,463

Income from investment 0 1,642,016,484 1,071,197,525 638,069,608

Commission,Exchange & Brokerage 0 1,264,281,562 981,257,153 1,026,013,925

Other operating income 0 281,684,127 792,809,413 303,832,945

Total income 0 5,888,126,174 4,466,532,530 3,447,424,941

15.6 Minority Interest

Share Capital 100 -

Retained earnings 33

133 -

Risk weighted assets

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

Sl. Status Position as on

31.12.2010

1 Chairman 7,058,060

2 Vice-Chairman 2,511,640

3 Director 5,178,590





8 Director 749,080

9 Director 340,740

10 Director 9,457,820

11 Director 1,240,720

12 Director 6,964,810

13 Director 826,960

14 Director 2,359,780

15 Director 288,230

16 Director 2,839,150

17 Director -

18 Director 4,794,390

19 Director 3,918,550

20 Director 1,487,870

21 Director 7,937,580

22 Director 4,620,130

23 Director 10,186,700

24 Director 11,238,650

25 Director 12,104,480

116,996,970

June 30, 2011 December 31, 2010

16 Taka Taka

Opening Balance on 1 January 2,543,463,417 1,893,817,316

Addition during the year (20% of pre-tax profit) 275,993,179 649,646,101

Closing Balance at 31 March 2,819,456,596 2,543,463,417

17 General Reserve

Opening Balance on 1 January 7,162,348 67,162,348

Addition during the period - -

Less : Adjusted during the period - 60,000,000

Closing Balance at 31 March 7,162,348 7,162,348

18 Other Reserve

18.1 Capital Reserve - Assets revaluation reserve 246,165,187 282,610,127

Less: provision for deferred tax - 36,444,940

246,165,187 246,165,187

18.2 Revaluation reserve on Govt. securities (Treasury Bills & Bonds)-HTM

Opening balance 230,558,030 385,581,483

Add: addition during the period 51,371,445 35,930,464

Held to Maturity (HTM ) - 35,930,464

Held for trading (HFT) 51,371,445 -

Less: adjusted during the period (190,953,917)

Held for trading (HFT) - (190,953,917)

Closing balance 281,929,475 230,558,030

528,094,662 476,723,217

Mr.Md. Abdul Awal

Mr. Amjadul Ferdous Chowdhury

Alhaj Md. Nurun Newaz

Name of Directors Position as on

30. 06. 2011

529,860

11,747,010

9,316,638

180,463

Mr. Ainul Kabir

Mrs. Sohela Hossain

Mr.Abdus Salam

Mr. Mahbubul Alam Tara

3,547,678 Mr. Yakub Ali

3,114,909

Mr. Ali Imam

Mrs. Lutfun Nahar Begum 6,308,846

3,015,364

Mr. S.M. Abu Mohsin

6,842,958

Mrs. Masuda Begum

6,835,738

Mr. Nurul Islam

Mr. A.S.M Main Uddin Monem

Mr. Md.Mostafizur Rahman

6,128,594

Mr. Md. Shahjahan

4,929,130

4,059,711

1,637,750

Mr. Khondkar Zakaria Mahmud

988,785

12,484,322

1,091,587

9,193,549

Mr. Tofazzal Hossain

Mr. Md. Moin Uddin

Mr. Fakhrul Anwar

Mr. Din M.Rana

Mr. Md. Humayun Kabir

Mr.Harunur Rashid

Mr. Khairul Alam Chaklader

Mr.Md.Abul Bashar

Statutory Reserve

11,677,605

5,172,486

6,098,571

1,963,988

161,124,917

15,977,913

13,446,444

14,835,018

June 30, 2011 December 31, 2010

Taka Taka

19

Retained earnings brought forward from previous year ( Note-19.1 ) 388,106,051 46,474,433

730,327,091 2,371,678,769

(275,993,179) (649,646,101)

- 60,000,000

842,439,963 1,828,507,101

19(a) Consolidated Surplus in profit and Loss Account

Retained earnings brought forward from previous year ( Note-19.1 ) 388,106,051 46,474,433

812,193,769 2,371,678,769

(275,993,179) (649,646,101)

Minority Interest (33) -

- -

- 60,000,000

924,306,608 1,828,507,101

19.1

1,828,507,101 1,120,377,433

(1,440,401,050) (1,073,903,000)

388,106,051 46,474,433

20 Contingent Liabilities :

20.1 8,552,271,026 5,404,953,559

20.2

Directors 12,852,000 2,573,000

Government 1,892,451,825 2,011,346,537

Banks and other financial institutions 14,126,258 14,353,711

Others 3,216,554,898 3,483,992,598

Total 5,135,984,981 5,512,265,846

Less: Margin - Note 13.4 518,004,789 514,121,302

4,617,980,192 4,998,144,544

20.3 Letter of Credit issued

Documentary Credit and short-term trade-related transactions 7,197,029,982 7,832,081,986

Forward Assets purchased and forward deposits placed - -

Spot and forward foreign exchange rate contract - -

Other exchange contract - -

Total 7,197,029,982 7,832,081,986

Less: Margin - Note 13.4 971,611,728 750,596,856

6,225,418,254 7,081,485,130

20.4 Bills for Collection 110,452,974 3,708,113

Money for which the Bank is contingently

Acceptances and Endorsement

Letter of Guarantee

Transferred from General Reserve

Closing Balance

Opening balance

Retained earnings

Issue of Bonus Share 2010

liable in respect of guarantees issued

Transferred from General Reserve

Undrawn formal standby facilities, credit facilities and other

commitments

Surplus in profit and Loss Account

Transferred to General Reserve

Transfer to Statutory Reserve

Profit for the period

Transfer to Statutory Reserve

Profit for the period

June 30,2011 June 30,2010

Taka Taka

21 Interest Income

Interest on Loans and Advances

Loan ( General) 400,577,135 304,922,683

Loan against House Building 112,112,660 79,802,619

Loan against Imported Merchandise 4,557,825 3,229,041

Loan against Trust Receipts 908,825,220 709,531,864

Loan against Packing Credit 13,375,933 8,955,915

SOD against Financial Obligation 415,962,264 411,581,048

SOD against Real Estate 1,889,013 3,048,123

SOD against Import permit 2,266,024 7,610,096

SOD General 391,320,036 245,244,167

SOD Export 28,835,483 14,670,019

C.C. against pledge 9,022,594 17,892,396

C.C. against hypothecation 680,405,601 432,843,605

C.C. against Export 39,833 111,301

Forced Loan 70,523,854 40,339,298

Inland bill purchased 1,397,498 72,905

FDBP & Discounted 13,176,495 5,003,728

Payment against documents 181,325,579 114,707,433

Local documentary bills purchased 224,108,729 117,429,741

Transport loan 20,315,920 11,220,255

Project loan 14,659,683 19,193,963

Demand loan 202,570 2,816,832

Lease Finance 79,724,910 52,883,276

Small Business Loan 57,140,268 50,157,472

House Renovation Loan 6,690,898 6,963,688

Personal Loans 1,217,449 1,319,928

Consumers Finance Scheme 71,641 103,209

Home improvement Loan 870,912 -

Loan against Investment 1,298,803 -

Agri Credit 16,773,687 6,060,052

Festival Small Business Loan 2,372,761 2,944,788

Term Loan (Small,Med/Large) 584,920,780 496,301,173

Special Housing Loan 71,866,860 64,321,496

Housing Loan under Refinance Scheme 1,762,975 1,860,176

Staff P.F Loan 6,170,508 5,522,659

Staff House Building Loan 8,336,494 7,175,287

Staff Car Loan 655,201 926,561

Credit Card 17,042,731 15,908,668

Car Loan Scheme 7,677,712 3,670,384

Short Term Loan (STL) 48,343,657 18,068,432

Garments & Foot wear cluster 36,982 -

Education Loan Scheme 302,884 59,879

4,408,178,062 3,284,474,160

Interest on balances with other banks and financial institutions

Fixed Deposits 47,304,531 13,362,254

Short term Deposits 10,780 11,988

Nostro Accounts 4,029,498 2,529,609

Money at call & short notice 8,081,944 1,077,500

Financial Institutions 4,723,749 3,920,070

678,857 2,708,683

64,829,359 23,610,104

4,473,007,421 3,308,084,264

Discount on Bills Purchased

June 30,2011 June 30,2010

Taka Taka

21(a) Consolidated Interest Income


Less : Interest Income paid to NCC Bank Ltd (112,127,087) -


4,527,586,981 3,308,084,264

22 Interest paid on deposits and borrowings

Savings deposits 148,465,456 100,580,680

Short term deposits 132,918,671 54,447,968

Fixed deposits 2,166,999,679 1,491,014,642

Bearer certificate of deposits - 1,016,880

Special savings scheme 293,715,372 204,180,482

Special deposit scheme 69,190,779 46,992,144

Discount 32,050 14,982

Borrowings from banks, financial institutions, etc. 83,423,153 56,241,239

REPO agreement with Bangladesh Bank 219,123,334 29,116,329

Wage Earners Welfare DPS 4,376,041 2,234,943

Treasury Bond 153,563,141 -

Coupon Interest 61,226,090 -

Premium Term deposits 6,451,403 21,760,252

Instant Earning Term deposits 220,000 496,133

Money Double Program 150,810,245 109,136,831

3,490,515,414 2,117,233,505

22(a) Consolidated Interest paid on Deposits,Borrowings,etc.


Less : Interest Expenses (112,127,087) -


3,490,515,414 2,117,233,505

23 Interest from investments

Dividend on shares 3,945,834 2,338,516

Interest on Treasury bills 107,638,778 41,902,313

Commission from National Prize Bond 121,000 90,000

Income from sale of Shares 20,900,436 180,251,127

Interest on Treasury Bond (HTM) 234,124,869 137,204,102

Interest on Treasury Bond (HFT) 681,297,043 278,604,236

Discount on Zero Coupon Bond 3,621,421 4,296,738

Others 5,824,715 -

1,057,474,096 644,687,032

24 Commission, exchange and brokerage

Commission:

Commission on bill purchased 6,066,607 2,686,852

Commission on Remittances 10,005,397 8,633,177

Commission on Letter of Guarantee 35,976,198 41,937,151

Commission on Letter of Credit 110,298,626 76,096,512

Commission on Pur./Sale-Share/Securities 634,318 -

Commission on Sanchaypatra 21,241 876,238

Commission on Back to Back LC. 26,289,227 20,572,370

Letter of Credit Advising Commission & handling charge 4,964,598 4,747,780

Commission on Acceptance of BTB L/C 50,556,881 27,217,435

Commission - Miscellaneous 8,127,640 3,897,300

Commission on L/C Confirmation 133,138 277,436

Underwriting Commission 6,006,320 5,628,595

Commission on Instrument Cancellation 6,300 11,610

Money Gram/Others 13,361,637 11,363,510

272,448,128 203,945,966

Exchange:

212,538,284 118,193,472

Brokerage 124,910,427 278,073,000

609,896,839 600,212,438

Exchange gain net off exchange losses

June 30,2011 June 30,2010

Taka Taka

24(a) Consolidated Commission,Exchange & Brokerage

NCC Bank Limited (Note-24) 609,896,839 600,212,438


680,903,557 600,212,438

25 Other operating income

Rent Locker 774,904 608,888

Rent Godown 348,840 1,253,627

Postage recoveries 4,933,493 4,979,426

Telex, Telegram, Trunk call, Fax.Swift etc. recoveries 15,414,239 16,001,169

Incidental charge recoveries - 700

Legal charge recoveries 511,316 435,537

Service charge 33,187,706 28,042,172

ATM Transaction Fees 2,693,144 1,715,429

Profit on sale of Fixed assets 4,233,349 2,366,556

Capital gain on sale of treasury bonds 50,743,670 16,363,965

Risk Fund 3,026,319 2,284,716

Account Maintenance Fees 30,476,349 26,012,894

Card fees 8,685,855 6,989,283

Miscellaneous earnings 35,756,430 20,425,881

Application and processing fees 4,167,882 3,047,376

194,953,496 130,527,619

25(a) Consolidated Other operating income



196,986,284 130,527,619

26 Salary & allowances

Basic Salary 202,601,623 187,788,424

House rent allowance 71,592,659 66,270,878

Allowances ( Note 26.a) ) 67,748,308 60,900,997

Bank's contribution to Provident fund 17,363,428 15,884,506

Bonus 47,230,300 21,393,683

Honorarium 755,500 635,804

407,291,818 352,874,292

26(a) Allowances

Entertainment Allowance 15,711,683 14,701,224

Medical allowance 32,316,701 29,764,230

Washing allowance 434,033 467,775

Evening Banking 232,700 200,084

Casual Wages 7,854,328 5,890,731

Other allowance 11,198,863 9,876,953

67,748,308 60,900,997

26(a) Consolidated Salary & allowances



415,398,612 352,874,292

27 Rent,taxes,insurance,electricity etc.

Rent :

Office 43,090,216 38,354,829

Godown/Garage 410,216 197,850

Clearing House 28,017 22,102

43,528,449 38,574,781

June 30,2011 June 30,2010

Taka Taka

Rates and Taxes:

Rates 154,623 141,520

Taxes 463,013 904,559

617,636 1,046,079

Insurance:

Cash 2,636,332 2,621,956

Vehicles 583,776 630,802

Deposits 17,164,927 13,390,507

Godown Insurance 264,066

20,385,035 16,907,331

Electricity :

Electricity - office 8,881,476 7,775,664

Electricity - residence 546,692 450,542

9,428,168 8,226,206

73,959,288 64,754,397

27(a) Consolidated Rent,taxes,insurance,electricity etc.



76,280,797 64,754,397

28 Legal Expenses

Legal charge 1,867,082 2,073,258

Stamp charge 35,437 70,736

Consultancy fee 48,500 56,321

Credit Rating Fee - -

1,951,019 2,200,315

29 Postage,stamp and telecommunication

Postage 5,400,012 3,801,739

Telex/Swift/Internet 3,761,579 4,267,671

Telephone -Office 2,558,624 2,648,670

Telephone -Residence 1,396,323 1,204,189

13,116,538 11,922,269

29(a) Consolidated Postage,stamp and telecommunication



13,329,954 11,922,269

30 Stationery,printing,advertisement etc.

Printing and stationery:

Printed stationery 9,841,089 8,273,358

Security stationery 6,391,689 4,467,116

Petty stationery 5,583,401 6,194,613

21,816,179 18,935,087

Publicity and advertisement 23,961,357 18,503,947

45,777,536 37,439,034

30(a) Consolidated Stationery,printing,advertisement etc.



46,133,496 37,439,034

June 30,2011 June 30,2010

Taka Taka

31 Managing Director's Salary & allowances

2,250,000 1,755,000

Bonus 1,000,000 1,000,000

Entertainment allowance 162,000 105,750

Medical allowance 324,000 211,500

House Rent allowance 562,500 442,500

4,298,500 3,514,750

32 Director's Fees

1,035,000 1,341,000

33 Audit Fees - -

34 Repairs,maintenance and depreciation

Repairs & Maintenance:

Repairs & Maintenance of Fixed assets 39,933,878 30,152,881

Renovation & Maintenance of Premises 27,701,914 26,856,160

67,635,792 57,009,041

Depreciation: (Annexure 'B')

Furniture and fixtures 9,340,555 7,464,062

Machinery and Equipment 25,881,107 20,546,577

Vehicles 5,223,030 5,075,140

Property 5,500,000 3,180,928

45,944,692 36,266,707

113,580,484 93,275,748

34(a) Consolidated Repairs,maintenance and depreciation



118,170,955 93,275,748

Consolidated Repairs & Maintenance:



71,348,243 57,009,041

Consolidated Depreciation: (Annexure 'B')



46,822,712 36,266,707

35 Other expensesEntertainment 8,032,103 7,937,697

Car expenses 14,872,032 14,351,614

Paper and periodicals 586,793 652,083

Trade Subscription 8,287,685 3,454,626

Traveling & Conveyance 23,755,921 24,671,435

Cartage & Freight 212,311 65,600

Liveries and Uniform 618,896 382,826

Water sewerage and gas 1,832,346 1,819,766

Medical charges 36,892 107,430

Laundry and cleaning 593,882 288,131

Training expenses 694,586 567,602

Business promotion 8,170,597 6,872,250

Donation 41,938 631,720

Utility Charges 6,794,963 6,184,226

Traveling and Haltage ( Directors ) 1,292,860 663,800

Refreshment and dinner ( Directors ) 469,356 590,743

Revaluation Reserve on BGTB/T.Bill (HFT) 67,236,987 15,366,115

Welfare and Recreation 1,725,528 2,593,831

Other Bank Charge 2,991,316 1,310,550

CDBL Charge 12,463,419 22,488,558

Miscellaneous expenses 156,501 879,502

Credit Card Service Charge 3,441,138 2,880,721

Charges of BO A/c 86,618 177,171

Sale Commission 1,375,532 7,798,568

Superannuation Fund 2,000,000 4,500,000

167,770,200 127,236,565

For attending the meeting of the Board / Executive Committee/ Audit Committee etc. @ Tk

5,000 per attendance per person

Basic Salary

June 30,2011 June 30,2010

Taka Taka

35(a) Consolidated Other expenses



177,079,795 127,236,565

36 Cash received from other operating activities

Other operating income 190,720,147 128,161,063

Exchange earning 212,538,284 114,193,472

403,258,431 242,354,535

36(a) Consolidated Cash received from other operating activities

Other operating income 192,752,935 128,161,063

Exchange earning 212,538,284 114,193,472

405,291,219 242,354,535

37 Cash paid for other operating activities

Expenses for the year 261,325,419 196,154,450

Add: Opening accrued expenses 2,708,886 3,925,290

Less: Closing accrued expenses 2,390,586 1,775,519

261,643,719 198,304,221

37(a) Consolidated Cash paid for other operating activities

Expenses for the year 277,238,350 196,154,450

Add: Opening accrued expenses 2,708,886 3,925,290

Less: Closing accrued expenses 2,390,586 1,775,519

277,556,650 198,304,221

38 Increase/(decrease) of other assets

Closing other assets:



Advance deposit 1,750,789 1,521,259


Suspense account 64,311,732 78,761,121

Prepaid Expenses (Software) 25,962,156 22,867,268

Others 1,053,331,797 584,854,646

1,264,612,484 783,999,818

Opening other assets:


Stamps and stamped forms in hand 1,386,944 980,964





Others 931,591,963 388,027,076

Income Tax paid during the year 697,526,608 415,339,328

Increase/(decrease) for the year 1,838,623,377 967,152,823

(574,010,893) (183,153,005)

38(a) Increase/(decrease) of Consolidated other assets

Closing other assets:







Others 781,568,887 584,854,646

992,849,574 783,999,818

June 30,2011 June 30,2010

Taka Taka

Opening other assets:


Stamps and stamped forms in hand 1,386,944 980,964





Others 931,591,963 388,027,076

Income Tax paid during the year 706,488,276 415,339,328

Increase/(decrease) for the year 1,847,585,045 967,152,823

(854,735,471) (183,153,005)

39 Increase/(decrease) of other liabilities

Closing other liabilities

Interest Suspense 303,702,690 254,976,369

Inter branch transaction account 346,668,971 438,457,846

650,371,661 693,434,215

Opening other liabilities

Interest Suspense 265,448,405 230,367,473

Inter branch transaction account 363,458,684 459,782,492

628,907,089 690,149,965

Increase/(decrease) for the year 21,464,572 3,284,250

40 Cash and Cash equivalents

Cash in hand 762,506,424 553,742,945

Balance with Bangladesh Bank and Sonali Bank 5,093,091,400 5,320,538,275

Balance with other bank and financial institution 759,133,572 1,219,618,663

Prize bonds 6,865,500 7,297,100

6,621,596,896 7,101,196,983

40(a) Consolidated Cash and Cash equivalents

Cash in hand 762,512,372 553,742,945

Balance with Bangladesh Bank and Sonali Bank 5,093,091,400 5,320,538,275

Balance with other bank and financial institution 762,356,655 1,219,618,663

Prize bonds 6,865,500 7,297,100

6,624,825,927 7,101,196,983

41 Earnings Per Share (EPS)

Net Profit after tax for the period 730,327,091 1,065,969,927

Number of Ordinary share outstanding 594,165,435 450,125,330

Earning per Share (EPS) 1.23 2.43

Resated Earning per Share (REPS) - 1.79

41 (a) Consolidated Earnings Per Share

Net Profit after tax for the period 812,193,769 1,065,969,927

Number of Ordinary share outstanding 594,165,435 450,125,330

Earning per Share (EPS) 1.37 2.43

Resated Earning per Share (REPS) - 1.79

Sd/- Sd/-

A.K. Md. Siddique

Deputy Managing Director &

Chief Executive Officer Chief Executive Officer

Mohammed Nurul Amin

Managing Director &

Balance on 1

January -2011

Additions

during the

period

(Disposals) /

adjustments

during the

period

Balance at 30

June- 2011

Balance on 1

January-

2011

Charge for

the period

( On

Disposals)/

adjustments

during the

period

Balance at 30

June -2011

Written down

value at 30 June-

2011

Taka Taka Taka Taka Taka Taka Taka Taka Taka

Furniture & fixture 236,983,642 39,605,087 - 276,588,729 101,626,693 9,559,609 - 111,186,302 165,402,427

Machinery & equipment 388,912,606 64,842,610 (41,247) 453,713,969 180,376,907 26,540,073 206,916,980 246,796,989

Land - I - Head Office Premise

(Under Construction)95,284,000 - - 95,284,000 - - - - 95,284,000

Land - II - Head Office Premise (with Structure) 24,709,834 - - 24,709,834 114,376 27,164 - 141,540 24,568,294

Land - III Premise of Dhanmondi Branch 26,699,950 - - 26,699,950 2,309,293 296,482 - 2,605,775 24,094,175

Land - IV Premise of Islampur Branch 47,812,834 - - 47,812,834 1,749,528 569,542 - 2,319,070 45,493,764

Land -V - Premise of Savar Branch 26,021,474 - - 26,021,474 1,185,074 281,454 - 1,466,528 24,554,946

Land - V1 - Premise of Bijoynagar Branch 53,085,456 - - 53,085,456 2,614,273 620,890 - 3,235,163 49,850,293

Land - V11 - Premise of Pragoti Sarani

Branch62,115,010 - - 62,115,010 872,163 765,536 - 1,637,699 60,477,311

Land - V111 - Premise of Uttara Branch 62,847,200 - - 62,847,200 284,104 782,038 - 1,066,142 61,781,058

Land - 1X -Premise of Agrabad Branch 58,902,420 - - 58,902,420 86,065 485,552 - 571,617 58,330,803

Land - X -Premise of Elephant Road Branch 87,386,268 39,284,168 - 126,670,436 11,699 867,370 - 879,069 125,791,367

Vehicles 68,915,337 1,878,862 (5,477,398) 65,316,801 38,571,696 5,223,030 (5,369,412) 38,425,314 26,891,487

Sub-total 1,239,676,031 145,610,727 (5,518,645) 1,379,768,113 329,801,871 46,018,740 (5,369,412) 370,451,199 1,009,316,914

Land - I - Premise of Head Office

(Under Construction)79,816,000

- - 79,816,000 - - - - 79,816,000

Land - II - Head Office Premise (with

Structure)163,150,265

- - 163,150,265 - - - - 163,150,265

Land - III Premise of Dhanmondi Branch 39,643,862 - - 39,643,862 991,097 803,972 - 1,795,069 37,848,793

Sub-total 282,610,127 - - 282,610,127 991,097 803,972 - 1,795,069 280,815,058

December -2010 Grand total 1,522,286,158 145,610,727 (5,518,645) 1,662,378,240 330,792,968 46,822,712 (5,369,412) 372,246,268 1,290,131,972

December-2010 . 1,110,775,268 422,505,432 (10,994,542) 1,522,286,158 261,671,687 79,661,309 (10,540,028) 330,792,968 1,191,493,190

Annexur-A

National Credit and Commerce Bank Limited

Cost Depreciation

Re-valuation Depreciation

Particulars

CONSOLIDATED FIXED ASSETS SCHEDULE AS AT JUNE 30, 2011

Balance on 1

January -2011

Additions

during the

period

(Disposals) /

adjustments

during the

period

Balance at 30

June- 2011

Balance on 1

January-

2011

Charge for

the period

( On

Disposals)/

adjustments

during the

period

Balance at 30

June -2011

Written down

value at 30 June-

2011

Taka Taka Taka Taka Taka Taka Taka Taka Taka

Furniture & fixture 236,983,642 39,579,914 - 276,563,556 101,626,693 9,340,555 - 110,967,248 165,596,308 Machinery & equipment 388,912,606 64,833,310 (41,247) 453,704,669 180,376,907 25,881,107 206,258,014 247,446,655 Land - I - Head Office Premise (Under

Construction)95,284,000 - - 95,284,000 - - - - 95,284,000


Structure)24,709,834 - - 24,709,834 114,376 27,164 - 141,540 24,568,294

Land - III Premise of Dhanmondi Branch 26,699,950 - - 26,699,950 2,309,293 296,482 - 2,605,775 24,094,175

Land - IV Premise of Islampur Branch 47,812,834 - - 47,812,834 1,749,528 569,542 - 2,319,070 45,493,764

Land -V - Premise of Savar Branch 26,021,474 - - 26,021,474 1,185,074 281,454 - 1,466,528 24,554,946 Land - V1 - Premise of Bijoynagar

Branch53,085,456 - - 53,085,456 2,614,273 620,890 - 3,235,163 49,850,293

Land - V11 - Premise of Pragoti Sarani

Branch62,115,010 - - 62,115,010 872,163 765,536 - 1,637,699 60,477,311

Land - V111 - Premise of Uttara Branch 62,847,200 - - 62,847,200 284,104 782,038 - 1,066,142 61,781,058

Land - 1X -Premise of Agrabad Branch 58,902,420 - - 58,902,420 86,065 485,552 - 571,617 58,330,803

Land - X -Premise of Elephant Road

Branch87,386,268 39,284,168 - 126,670,436 11,699 867,370 - 879,069 125,791,367

Vehicles 68,915,337 1,878,862 (5,477,398) 65,316,801 38,571,696 5,223,030 (5,369,412) 38,425,314 26,891,487

Sub-total 1,239,676,031 145,576,254 (5,518,645) 1,379,733,640 329,801,871 45,140,720 (5,369,412) 369,573,179 1,010,160,461

Land - I - Premise of Head Office (Under

Construction)79,816,000 - - 79,816,000 - - - - 79,816,000


Structure)163,150,265 - - 163,150,265 - - - - 163,150,265

Land - III Premise of Dhanmondi Branch 39,643,862 - - 39,643,862 991,097 803,972 - 1,795,069 37,848,793

Sub-total 282,610,127 - - 282,610,127 991,097 803,972 - 1,795,069 280,815,058

March -2011 Grand total 1,522,286,158 145,576,254 (5,518,645) 1,662,343,767 330,792,968 45,944,692 (5,369,412) 371,368,248 1,290,975,519

December-2010 . 1,110,775,268 422,505,432 (10,994,542) 1,522,286,158 261,671,687 79,661,309 (10,540,028) 330,792,968 1,191,493,190

Re-valuation Depreciation

Particulars

FIXED ASSETS SCHEDULE AS AT JUNE 30, 2011

Annexur-B


Cost Depreciation

Annexure-C

In demand deposit accounts (non interest bearing) with:

Currency

Name

Amount in

Foreign

Currency

Convertion

rate per

unit F.C.

Amount in

BDT.

Amount in

Foreign

Currency

Convertion

rate per

unit F.C.

Amount in

BDT.

Standard Chartered Bank, Singapore SGD 15,601.29 60.2228 939,553 9,808.62 54.4168 533,754

Standard Chartered Bank, Japan J.YEN 3,445,096.00 0.9206 3,171,555 1,585,843.00 0.8636 1,369,534

HSBC Bank, New York USD - - - 127,142.81 70.3500 8,944,497

Bank of Tokyo Mitsubishi, Japan J.YEN 1,082,375.00 0.9206 996,434 1,048,995.00 0.8636 905,912

Myanma Investment & Co, Mayanmar ACU 101,282.64 74.0500 7,499,980 94,275.75 70.3500 6,632,299

Banko Itau USD 7,672.89 74.0500 568,178 69,615.74 70.3500 4,897,467

Bank of Tokyo Mitsubishi, Kolkata ACU 100,000.00 74.0500 7,405,000 100,000.00 70.3500 7,035,000

American Express Bank, Colombo ACU 331,419.03 74.0500 24,541,579 380,957.99 70.3500 26,800,395

Commerze Bank AG EUR 18,461.30 106.4243 1,964,731 11,267.36 92.4731 1,041,928

United Bank Ltd., Karachi ACU 17,801.71 74.0500 1,318,217 27,936.21 70.3500 1,965,312

UBAF,Japan J.YEN 416,000.00 0.9206 382,970 182,400.00 0.8636 157,521

Nepal Bangladesh Bank, Nepal ACU 116,599.12 74.0500 8,634,165 57,574.12 70.3500 4,050,339

HSBC, Kolkata ACU 60,764.96 74.0500 4,499,645 268,496.81 70.3500 18888751

AXIS Bank Kolkata ACU 53,625.19 74.0500 3,970,945 91,856.19 70.3500 6462083

Bank of Bhutan, Phuentsholing ACU 33,117.59 74.0500 2,452,358 57,717.59 70.3500 4,060,432

WACHOVIA NA USD 369,051.30 74.0500 27,328,249 - - -

ACU 57,448.08 74.0500 4,254,030 - - -

Uni Credio Italiano Spa EURO 147,155.82 106.4243 15,660,955 50,241.16 92.4731 4,645,956

USD 106,088.52 74.0500 7,855,855 164,951.65 70.3500 11604349

CAD 111,978.12 76.4821 8,564,322 54,036.82 70.3782 3803014

Habib Metropoliton Bank ACU 72,111.03 74.0500 5,339,822 140,606.13 70.3500 9,891,641

Standard Chartered Bank, London EUR - - - 15,886.59 92.4731 1,469,082

137,348,543 125,159,266

In demand deposit account ( interest bearing) with :

Currency

Name

Amount in

Foreign

Currency

Convertion

rate per

unit F.C. Amount in

BDT.

Amount in

Foreign

Currency

Convertion

rate per

unit F.C. Amount in

BDT.

Standard Chatered Bank, New York USD 3,161,137.29 74.0500 234,082,216 1,162,781.25 70.3500 81,801,661

Mashreq Bank, New York USD 1,414,594.47 74.0500 104,750,721 410,051.83 70.3500 28,847,146

CITI Bank NA USD 1,105,211.08 74.0500 81,840,880

Standard Chartered Bank, London GBP 463,280.98 118.2575 54,786,451 - - -

475,460,268 110,648,807

612,808,811 235,808,073

Nova Scotia Canada

ICICI Bank HKK

Outside Bangladesh - Note 6(2)

For the half-year ended June 30, 2011

ICICI Bank Kolkata

BALANCE WITH OTHER BANKS AND FINANCIAL INSTITUTIONS

Name of the Bank

June 30, 2011 December 31, 2010

Borrowings from other banks, Financial Institutions and agents

( Outside Bangladesh ) - Note -12

Currency

Name

Amount in

Foreign

Currency

Convertion

rate per

unit F.C.

Amount in

BDT.

Amount in

Foreign

Currency

Convertion

rate per

unit F.C.

Amount in

BDT.

CITI Bank NA USD - - - 468,942.53 71.3500 33,459,050

ICICI Bank, Kolkata ADLR - - - 436,877.22 71.3500 31,171,190

Standard Chartered Bank, London GBP - - - 3,396.57 111.6567 379,250

Standard Chartered Bank, Kolkata ACU 119,465.31 75.0500 8,965,872 792,566.97 71.3500 56,549,653

Wachovia NA USD - 72.3000 - 211,697.04 71.3500 15,104,584

Mashreq Bank Kolkata ACU 195.07 75.0500 14,640 1,951,778.61 71.3500 139,259,404

Standard Chartered Bank, London EUR 69,428.72 110.8825 7,698,430 - - -

HSBC Bank,N.Y USD 18,066.95 75.0500 1,355,925 - - -

18,034,867 275,923,130

Annexure - D

Name of the Bank

40724 40543

NATIONAL CREDIT AND COMMERCE BANK LTDFinancial Statements

For the half-year ended June 30, 2011

Statement of Large Loan Exposure made during the period June 30, 2011

more than 10% of Total Capital of the Bank (Note-9.7)

December 31, 2010

TakaTotal Total

Funded Non-Funded Amount Amount

1 NCCBL Securities & Financial Servises Limited 242.29 102.00 344.29 -

2 Aftab Group (all allied concern) 176.02 25.67 201.69 133.83

3 Doreen Power Generation & Systems Ltd. 186.91 9.50 196.41 205.16

4 Saad Musa Home Tex 101.62 63.09 164.71 101.43

5 Abul Khair Steel Industries Ltd. 45.93 110.83 156.76 152.60

6 Best Holdings Ltd. 120.66 1.41 122.07 112.14

7 DAF P.P. Ind. & allied concern 76.62 39.18 115.80 166.29

8 BSRM Steel 25.98 88.84 114.82 -

9 BBC Steel 13.11 92.87 105.98 -

Grand -Total 989.14 533.39 1,522.53 871.45

Annexure-E

Sl.

No

Name of Clients June 30, 2011

Taka

Outstanding

National Credit and Commerce Bank LimitedNotes to the Financial Statements

(Amount in Crore)

Investment in Shares as on 30.06.2011

SL

No.Name of Company

Type of

Shares

Face

ValueNo. of Shares

Cost / Present

value of

holdings

Quoted rate

per share as

on

30.06.2011

Total Market

Value as at

30.06.2011

1 2 3 4 5 6 8 9

Quoted:1 Bata Shoe Co. (BD) Ltd. A 10 5,000 3,008,892 632.20 3,161,000

2 Bangladesh Auto Cars Ltd. B 100 1,805 223,932 495.25 893,926

3 Eastern Cables Ltd. A 100 2,504 277,852 649.50 1,626,348

4 Eagle Star Textile Mills Ltd. Z 10 254,700 4,227,951 9.90 2,521,530

5 National Bank Limited A 10 117,215 5,061,712 65.20 7,642,385

6 Olympic Industries Ltd. A 100 662 511,650 1,902.00 1,259,124

7 Prime Textile Mills Ltd. A 100 1,000 300,000 534.50 534,500

8 A B Bank Ltd. A 100 1,725 1,562,905 851.00 1,467,975

9 Agrani Insurance Ltd. A 100 11,000 9,794,937 525.50 5,780,500

10 Asia Insurance Ltd. A 10 34,500 6,399,750 72.60 2,504,700

11 Al-Arafa Islami Bank Ltd. A 10 542,425 29,564,701 34.20 18,550,935

12 BSRM Steel Ltd. A 100 3,780 6,736,541 1,413.50 5,343,030

13 MBL 1st Mutual Fund N 10 1,000,000 10,000,000 8.90 8,900,000

14 DESCO Ltd. A 100 5,584 9,945,178 1,706.50 9,529,096

15 Eastland Insurance Ltd. A 100 13 11,650 924.00 12,012

16 Bank Asia Ltd. A 10 9,100 5,150,550 478.25 4,352,075

17 Grameenphone Ltd. N 10 26,000 7,206,040 163.90 4,261,400

18 Green Delta Insurance Co. N 10 27,100 7,484,686 184.70 5,005,370

19 IDLC A 100 4,661 11,685,708 2,049.00 9,550,389

20 Islami Bank (BD) Ltd. A 100 200 56,132 512.50 102,500

21 Jamuna Bank Ltd. A 10 183,211 8,509,524 35.00 6,412,387

22 Lanka Bangla Finance Ltd. A 10 31,700 8,781,367 209.90 6,653,830

23 Meghna Petrolium Ltd A 10 10,750 3,292,656 188.60 2,027,450

24 Navana CNG Ltd. A 10 75,000 17,923,420 168.10 12,607,500

25 Exim Bank Ltd. A 100 45,562 337,500 32.90 1,498,990

26 Prime Bank Ltd. A 10 3,380 11,223 47.50 160,550

27 Pubali Bank Ltd. A 10 393,250 24,453,435 55.30 21,746,725

28 Summit Alliance Port Ltd. A 10 37,500 7,806,380 80.90 3,033,750

29 South East Bank Ltd. A 100 75,600 37,868,869 320.50 24,229,800

30 Square Textiles Ltd A 10 48,000 9,368,665 139.30 6,686,400

31 Karnaphuly Insurance Ltd. 27,000 1,701,470 62.80 1,695,600

32 Standard Bank Ltd. A 100 365 114,448 327.50 119,538

33 Summit Power Ltd. A 10 130,000 12,635,358 81.50 10,595,000

34 Titas Gas Transmission A 100 14,500 13,350,279 802.25 11,632,625

35 Uttara Bank Ltd. A 100 12,000 934,833 79.40 952,800

36 ICB Islamic Bank Z 10 400,100 5,490,645 11.20 4,481,120

37 Khulna Power Co. Ltd. A 10 18,000 2,471,700 69.50 1,251,000

38 Laferge Surma Cement A 100 5,000 3,504,400 489.00 2,445,000

39 Ocean Containers Ltd. N 10 22,056 2,325,945 79.70 1,757,883

40 Shahjalal Islami Bank Ltd. A 10 200,000 7,655,725 38.30 7,660,000

41 Bay Leasing & Investment A 100 23,917 42,620,962 1,122.00 26,834,874

42 Green Delta Mutual Fund N 10 1,000,000 10,000,000 7.80 7,800,000

43 Fareast Life Insurance Ltd. A 2,000 704,400 334.00 668,000

44 Power Grid Co. Ltd. A 100 2,500 2,004,763 807.75 2,019,375

45 Bangladesh General Insurance Co. A 100 15,000 758,000 51.30 769,500

46 SEBL 1st Mutual Fund A 10 1,000,000 10,000,000 8.80 8,800,000

47 Peoples Leasing & Finance A 100 195,450 28,250,245 118.60 23,180,370

48 Premier Leasing Ltd. A 10 20 13,681 733.75 14,969

49 RAK Ceramics Ltd. N 10 70 3,046 105.00 7,329

382,103,706

Un-Quoted

1 CDBL 400,000 8,833,340 - 2,000,000

2 Swift 1 991,199 - 991,199

3 Venture Invst. Partner BD Ltd. 180,000 18,000,000 - 18,000,000

4 Dhaka Vegetable Oil Ind. Ltd. 31,920 7,448,523 - 7,448,523

5 Dun & Bradstreet Rating Agency 41,659 4,165,900 - 4,165,900

6 Summit Uttaranchal PCL 170,000 17,000,000 - 17,000,000

7 Summit Purbanchal PCL 255,000 25,500,000 - 25,500,000

8 NCCBL Mutual Fund -1 1,500,000 150,000,000 - 150,000,000

Annexure-F


Total Quoted Share : 290,741,160

9 Summit Power Ltd. 19,000 1,900,000 - 1,900,000

233,838,962 227,005,623

615,942,668 517,746,783

Total market value of quoted shares is lesser than cost price by Tk.8,26,33,429/- against which provisionof Tk.8,26,33,429/- is

appearing in these financial statements (Note-8.1).

Total Unquoted Share :

Grand Total :

SL.

No.Name of Directors

Status with

the

NCCBL

Name of the firms/companies in which

interested as proprietor, partner, director,

managing agent, guarantor, employee etc.

% of

interest

1 Alhaj Md. Nurun Newaz Chairman Electro Mart Limited, Chairman 30.00%

Trade International Marketing Ltd., Chairman 35.00%

Newaz International Ltd., Managing Director 35.00%

The Royal Bengal Agency, Proprietor 100.00%

Royal International, Proprietor 100.00%

Central Insurance Company Ltd., Shareholder 5.00%

2 Mr. Mostafizur Rahman Vice Chairman Sirina Garments & Textiles Ltd., Chairman & Managing Dircetor 25.00%

RMS Textile & Apparels Ltd., Chairman & Managing Dircetor 16.67%

Dragoni Fashions Ltd., Chairman & Managing Dircetor 35.00%

CNS Ltd. , Chairman 16.00%

Crown Housing Ltd., Chairman 33.33%

3 Mr. A.S. M. Main Uddin Monem Director Abdul Monem Ltd., Director 15.00%

Abdul Monem Sugar Refinery Limited, Director 41.67%

AM Energy Limited, Director 15.00%

AM Pharma Ltd., Managing Director 17.50%

AM Securities & Financial Services Ltd., Managing Director 80.00%

Igloo Ice Cream Limited, Director 16.67%

Service Engin BD Limited 10.00%

Igloo Foods Limited, Director 25.00%

Igloo Dairy Limited, Director 25.00%

AML Infotech Limited, Director 10.00%

AM Channel Limited, Director 25.00%

Jainab Enterprise, Proprietor 100.00%

Jainab Overseas, Proprietor 100.00%

Pragati Insurance Co. Ltd., Director 0.20%

4 Mr. Nurul Islam Director Unilac Sanowara (BD) Ltd., Managing Director 25.50%

Sanowara International Products Ltd., Managing Director 38.18%

Sanowara Garments Ltd., Managing Director 40.00%

Sanowara Drinks & Beverage Industries Ltd., 26.34%

Sanowara Plastic Products Ltd., Managing Director 28.57%

Sanowara Poultry & Hatchery Ltd., Managing Director 40.04%

Sanowara Packaging Industries Ltd., Managing Director 45.76%

Sanowara Dairying Industries Ltd., Managing Director 33.66%

Sanowara Dairy Foods Ltd., Managing Director 25.00%

Sanowara Consumer Products Limited, Managing Director 22.22%

Sanowara Holdings Limited, Managing Director 20.00%

Sanur Hatchery & Feed Processing Limited, Managing Director 28.57%

5 Mr. Md. Abdul Awal Director Prime Group of Industries Limited, Chairman & M.D. 20.00%

Prime Energy Limited, Managing Director 35.00%

Prime Textile Spinning Mills Limited, Managing Director 14.70%

Prime Composite Mills Limited, Managing Director 6.51%

Prime Steel Re-Rolling Mills Ltd., Managing Director 0.26%

Prime Dairy & Poultry Ind. Limited, Managing Director 80.00%

Prime Fisheries Industries Limited, Managing Director 80.00%

Prime Trans National Limited, Managing Director 80.00%

Prime Peoples Property Limited, Managing Director 80.00%

Annexure-G

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


Prime World Trade Limited, Managing Director 80.00%

Prime Super Printing Mills Limited, Managing Director 80.00%

Prime Synthetic Limited, Managing Director 80.00%

Prime Weaving Mills Limited, Managing Director 80.00%

SL.


Status with

the

NCCBL




% of

interest

Mr. Md. Abdul Awal Director Prime Dyeing & Finishing Mills Limited, Managing Director 80.00%

Prime Blended Yarn Mills Limited, Managing Director 80.00%

Prime Melange Spinning Mills Limited, Managing Director 4.56%

Prime Knitwears Limited, Managing Director 60.00%

Prime Information Technologies Limited, Managing Director 50.00%

Prime Textile Fabrics Limited, Managing Director 75.00%

Prime Knit Fabrics Limited, Managing Director 75.00%

Prime Fine Yarn Mills Limted, Managing Director 60.00%

Prime Ship Breakers Limited, Chairman 50.00%

Prime Ship Recycling Limited, Chairman 15.50%

Prime FSS Ship Breakers Ltd., Chairman 20.00%

Prime Financial Consultants & Equities Limited, Shareholder 48.29%

Steel Enterprise Limited, Managing Director 0.80%

Doleswar Iron & Eng. Works Limited, Managing Director 6.00%

Unique Steel Industries Limited, Managing Director 8.33%

Jahanabad Ship Breakers Limited, Chairman 50.00%

6 Mr.Amjadul Ferdous ChowdhuryDirector

B.S.A. Garments Ind. (Pvt.) Limited, Managing Director 19.00%

B.S.A. Garments Ind.(Pvt.) Ltd., Managing Director 19.00%

B.S.A. Fashion Ltd., Managing Director 50.00%

B.S.A. Apparels Limited, Managing Director 25.00%

Vanguard Garments Ltd., Managing Director 50.00%

Vanguard Fashion Ltd., Managing Director 35.00%

Vanguard Shares & Securities Ltd., Chairman 5.00%

Vanguard Packages Ltd., Managing Director 33.00%

Vanguard Dresses Limited, Managing Director 33.00%

Glare Fashion Limited, Managing Director 50.00%

Royal Cement Ltd., Chairman 10.00%

Brave Royal Shipping Limited, Managing Director 20.00%

Vanguard Maritime Limited, Chairman 30.00%

Royal P P Bags Limited, Chairman 15.00%

Harrods Garments Ltd., Chairman 25.00%

Glare Trading, Proprietor 100.00%

7 Mr. S.M. Abu Mohsin Director J. M. Fabrics Limited, Chairman79.88%

Brothers Oxygen Ltd., Managing Director 80.00%

Food of Accomodation Limited, Chairman 19.10%

8 Mrs. Masuda Begum Director Arrow Fashion (Pvt) Ltd., Managing Director 42.85%

Neox Garments Ltd., Managing Director 36.66%

Kashmir Garments Ltd., Managing Director 35.55%

Arrow Fabrics (Pvt) Ltd., Chairperson 62.50%

EVE's Harbal Beauty Care Saloon, Managing Partner 50.00%

9 Mrs. Lutfun Nahar Begum Director Wazhico International Ltd 9.37%

Sagarika Textile Ltd. 12.50%

10 Mr. Abdus Salam Director The Bengal Electric Ltd., Managing Director 74.00%

Multiple Equipment & Engineering Ltd., Managing Director 60.00%

Gangatia Fisheries Ltd., Managing Director 20.00%

Bengal Shipyard Ltd. (Bengal Energy Ltd.), Managing Director 60.00%

11 Mr. Mahbubul Alam Tara Director Bangladesh Progressive Enterprise Press Ltd. 31.29%

Managing Director

Progressive Poly-Pack Ltd., Managing Director 22%

12 Mrs. Sohela Hossain Director Mir Akhter Hossain Ltd., Director 15.00%

Mir Cement Ltd., Director 31.88%

Mir Real Estate Ltd., Director 25.00%

Mir Concrete Products Ltd.,Director 35.16%

Mir Telecom Ltd., Chairperson 12.37%

Mir Power Ltd., Director 25.00%

SL.


Status with

the

NCCBL




% of

interest

13 Mr. Ainul Kabir Director Nil Nil

14 Mr. Khondkar Zakaria Mahmud Director Home Creations Ltd., Managing Director 40.00%

Kriya Consulting Limited, Director 20.00%

Agro Futures Limited, Director 20.00%

15 Mr. Md. Shahjahan Director Nil Nil

16 Mr. Yakub Ali Chairman Ali Fashion Limited, Chairman 23.81%

Anowara Apparels Ltd., Chairman 22.22%

Anowara Fashions Ltd., Chairman 21.83%

Anowara Paper Mills Ltd., Chairman 35.00%

Bangladesh Fertilizer & Agro Chemicals Ltd., Director 18.35%

Diamond Cement Ltd., Chairman 11.56%

Habib Printers & Publisher Ltd., Chairman 33.35%

Habib Share & Securities Ltd., Chairman & Managing Director 16.67%

Habib Sons, Managing Partner 1:03

Habib Steels Ltd., Chairman 33.34%

HG Aviation Limited, Director 8.33%

Legacy Fashion Ware Ltd., Chairman 10.60%

Maam Textile Mills Limited, Chairman 16.00%

MTS Re-Rolling Mills Ltd., Chairman 23.34%

Mudys Navigation Ltd., Chairman 35.00%

Noor Garments Ltd, Chairman 31.25%

Regent Fabrics Ltd., Chairman 16.67%

Regent Power Ltd., Chairman 13.33%

Regent Spinning Mills Ltd., Chairman 14.00%

Regent Textile Mills Ltd., Chairman 22.11%

Regent Weaving Ltd., Chairman 33.33%

Saims Superior Limited, Chairman 1.00%

Valiant Fashion Ware Ltd., Chairman 16.67%

Valiant Garments Ltd., Chairman 16.84%

17 Mr.Ali Imam Director Vest-Thread and Accessories Ltd., Director 51.00%

Sam Sweater Ltd., Director 20.00%

Prime Shrimp Hatchery Ltd., Director 30.00%

Imam Accessories Ltd., Director 20.00%

Ben Hossain Holding Ltd., Director 50.00%

Ranal Designers Ltd., Director 25.00%

Imam Real Estate Ltd., Director 20.00%

River View Holding Ltd., Director 50.00%

Dress Designers Ltd., Director 50.00%

Imam Dyeing Knitting Printing & Finishing Ind.Ltd., Director 65.00%

18 Mr. Tofazzal Hossain Director Agro Equipments Ltd., Chairman 40.00%

Protik Ceramic Ind. Ltd., Chairman 40.00%

National Life Insurance Co. Ltd., Chairman 0.23%

Islami Insurance Bangladesh Ltd., Chairman 5.00%

New Nation Garments Ltd., Managing Director 60.00%

T.H. Fashions, Proprietor 100.00%

New Generation Trading, Proprietor 100.00%

T.H. Packages, Proprietor 100.00%

Great walls Land Properties Ltd., Director 30.00%

19 Mr. Fakhrul Anwar Director Golden Inn Chattagram Ltd. 30.00%

Managing Director

Federal Insurance Co Ltd., Director 2.00%

Holy Crescent Hospital Ltd., Director 3.00%

Fakhrul Anwar & Bros, Proprietor 100.00%

Neptune Motors Ltd., Director 13.00%

SL.


Status with

the

NCCBL




% of

interest

20 Mr. Md.Humayun Kabir Director Cross Trade Shipping Services Ltd., Managing Director 50.00%Tuly Trading House, Proprietor 100.00%

21 Mr. Din M. Rana Director National Life Insurance Company Limited, Shareholder 0.03%

The White Castle Limited, Chairman 10.00%

Hotel Lake Castle Limited, Director 25.00%

Bestclean Limited, Managing Director 64.44%

Rigs Limited, Managing Director 77.58%

Rigs Aviation Limited, Managing Director 20.00%

Rigs Publication Limited, Managing Director 50.00%

Rigs Properties Ltd, Managing Director 50.00%

Rigs Organic Fertilizer Ltd. Director 51.00%

NRB World Club Ltd. Director 14.29%

Alliance Capital Management Ltd. Director 10.00%

Rigs Fisheries Prokalpa, Proprietor 100.00%

Rigs Marketing, Managing Director 50.00%

Rigs Herbs, Proprietor 100.00%

Cox's Inn, Proprietor 100.00%

Madina Industrial Corporation (USA), President 90.00%

Modina Corporation (USA), President 90.00%

Shaptahik Kagoj Inc.(USA), President 95.00%

22 Mr. Md. Abul Bashar Director Prime Group of Industries Limited, Dy. Managing Director 1.00%

Prime Energy Limited, Dy. Managing Director 5.00%

Prime Textile Spinning Mills Limited, Dy.Managing Director 0.34%

Prime Composite Mills Limited, Dy. Managing Director 0.22%

Prime Steel Re-Rolling Mills Ltd., Dy. Managing Director 0.01%

Prime Dairy & Poultry Ind. Limited, Dy. Managing Director 3.00%

Prime Fisheries Industries Limited, Dy.Managing Director 3.00%

Prime Trans National Limited, Dy. Managing Director 2.00%

Prime Peoples Property Limited, Dy. Managing Director 2.00%

Prime World Trade Limited, Dy. Managing Director 2.00%

Prime Super Printing Mills Limited, Dy.Managing Director 2.00%

Prime Synthetic Limited, Dy. Managing Director 2.00%

Prime Weaving Mills Limited, Dy. Managing Director 2.00%

Prime Dyeing & Finishing Mills Limited, Dy. Managing Director 2.00%

Prime Blended Yarn Mills Limited, Dy. Managing Director 2.00%

Prime Melange Spinning Mills Limited, Dy. Managing Director 4.54%

Prime Knitwears Limited, Dy. Managing Director 5.00%

Prime Information Technologies Limited, Dy. Managing Director 25.00%

Prime Textile Fabrics Limited, Dy. Managing Director 5.00%

Prime Knit Fabrics Limited, Dy. Managing Director 5.00%

Prime Fine Yarn Mills Limted, Dy. Managing Director 5.00%

Prime Ship Breakers Limited, Managing Director 10.00%

Prime Ship Recycling Limited, Managing Director 10.00%

Prime FSS Ship Breakers Ltd., Managing Director 6.00%

Prime Financial Consultants & Equities Limited, Shareholder 16.46%

Steel Enterprise Limited, Dy. Managing Director 0.02%

Doleswar Iron & Eng. Works Limited, Dy. Managing Director 3.00%

Unique Steel Industries Limited, Dy. Managing Director 4.17%

Jahanabad Ship Breakers Limited, Managing Director 10.00%

23 Mr. Md. Harunur Rashid Director Nazma Construction Company, Proprietor 100.00%

NCC Consortium, Proprietor 100.00%

Apurba Embrioidery, Proprietor 100.00%

HR Bricks, Proprietor 100.00%

Nazma Construction Company Consortium, Proprietor 100.00%

Faridgonj Fisheries Ltd., Managing Director 95.00%

Global Insurance Ltd., Sponsor 2.16%

24 Mr. Khairul Alam Chaklader Director Desh Medical College & Hospital , Chairman 25.00%Gulshan Point (Pvt) Ltd., Managing Director 30.00%Gold Vision Industries Ltd., Managing Director 50.00%Urban Responses Ltd., Managing Director 50.00%Eastern Logistics Ltd., Director 10.00%Maxwell Electronics, Proprietor 100.00%

25 Mr. Md. Moinuddin Director Nil Nil

26 Professor Shahid Uddin Ahmed, Ph.D. Independent

Director Nil Nil

Annexure-H

1 Habib Shares & Securities Ltd. Managing Director Mr. Yakub Ali SOD(G) - - -

2 New Generation Trading Proprietor Mr. Tofazzal Hossain CC(H) 103.90 - 103.90

3 Self - Mr. Mahabubul Alam Tara HBL 48.23 - 48.23

Prograsive poly pack Limited Managing Director Loan (G) 70.95 - 70.95

4 M/S. Fahad Traders Proprietor Mr. Fakrul Anowar CC(H) 38.83 - 38.83

5 M/s.Mr.A.Parvez Chowdhury Guarantor Mr.Amjadul Ferduse Chowdhury CC(H) 197.02 - 197.02

Self - Mr. Humayun Kabir SOD(G) 76.14 - 76.14

6 Chicks Field Guarantor Mr. Nurul Islam CC(H) 9.88 - 9.88

Sanowara Drinking & Bevarage Inds. Ltd. Managing Director B/G - 6.17 6.17

Sanowara Dairy & Food Ltd. Managing Director B/G - 18.45 18.45

7 Samsong Corporation Guarantor Mr. Khairul Alam Chaklader CC(H) 147.00 102.79 249.79

LTR - -

8 Prime Steel Re-rolling Mills Limited Managing Director Mr.Md. Abdul Awal B/G - 1.11 1.11

Total 691.95 128.52 820.47


SL.

No.

Outstanding

(Funded)

The Significant Related party transactions during the year were as follows:

Related Party Transactions:

Directors relation

with the concern

Related Party Transactions:

as at June 30, 2011

Outstanding

(Non-funded)

The Bank in normal course of business has had transactions with other entities that fall within the definition of Related party as contained in Bangladesh Accounting

Standards (BAS-24) (Related Party Disclosures) and as defined in the BRPD Circular # 14 dated 25 June 2003.

Representing DirectorsName of the Organization Total

Outstanding

Nature of

Transaction

Figure in Lac

Annexure-I

Accounting

Year

Assessment

Year

Current Tax

Provision as per

accounts

Tax Liability as

per Assessment

Order/Return

Excess/

(Shortage)

provision

Advance

Income Tax

paid

Dues/

(Refund) Remarks

1 2 3 4 5=(3-4) 6 7=(4-6) 8

2001 2002-2003 139,829,928 146,692,885 (6,862,957) 139,829,928 6,862,957 The Bank has filed appeal with the High Court Division

of the Supreme Court of Bangladesh against appeal

decision for excess tax liability of Tk.68.63 lac which has

remained pending till date.2003 2004-2005 163,388,876 86,888,016 76,500,860 159,999,990 (73,111,974) According to revised assessment and appeal decision tax

liability comes to Tk.8.69 crore and refund of Tk.7.31

Crore against which tax department has filed an appeal

with Appellate Tribunal, The Appellate Tribunal kept the

decision of DCT unchanged against which the Bank has

filed appeal with High Court Division to established it's

right under first proviso to section 82 of ITO-1984.

2004 2005-2006 221,398,901 222,971,622 (1,572,721) 226,708,126 (3,736,504) Assessment Completed

2005 2006-2007 322,623,135 322,779,734 (156,599) 322,779,734 - Assessment Completed

2006 2007-2008 518,131,245 571,482,877 (53,351,632) 544,969,341 26,513,536 Assessment completed under section 82B/120/173 of

ITO 1984, but the Bank has filed an appeal to Appellate

Tribunal.2007 2008-2009 739,994,184 768,858,741 (28,864,557) 735,898,823 32,959,918 Assessment completed under section

82BB/(3)/83(2)/120/173 of ITO 1984, but the Bank has

filed an appeal to the Appellate Tribunal.2008 2009-2010 828,016,517 842,248,545 (14,232,028) 828,016,518 14,232,027 The Bank has filed second appeal to the Appellate

Tribunal to established its rights as per income tax

return.2009 2010-2011 768,839,222 768,839,222 - 768,839,222 - Return filed but assessment order yet to receive.

2010 2011-2012 1,057,110,305 1,058,426,103 (1,315,798) 1,058,426,103 - Return filed but assessment order yet to receive.Total 4,759,332,313 4,789,187,745 (29,855,432) 4,785,467,785 3,719,960

National Credit and Commerce Bank LimitedCorporate Tax Position

as on June 30, 2011

Annexure-J

a.(i) Disclosure regarding outstanding Repo as on 30 June, 2011.

Sl No Counter Party Name Agreement Date Reversal Date

Amount

(Ist leg cash

consideration)

01 Bangladesh Bank 30.06.2011 03.07.2011 6,963,979,977

-

6,963,979,977

a.(ii) Disclosure regarding outstanding Reverse Repo as on 30 June, 2011.

Sl No Counter Party Name Agreement Date Reversal Date

Amount

(Ist leg cash

consideration)

-

b.Disclosure regarding overall transaction of Repo and Reverse repo.

Minimum

outstanding during

the year

Maximum

outstanding during

the year

Daily average

outstanding during

the yearSecurities sold undrer repo:

i) with Bangladesh Bank 8,351,313,091 6,176,958,486

ii)with other banks& FIs 1,993,460,852 902,239,837

Securities Purchased undrer repo: i)from Bangladesh Bank

ii)from other banks& FIsNIL

National Credit and Commerce Bank Limited Financial Statements for the year ended June 30, 2011

Total

Total

NIL

Annexure-K

Sl.

No. Particulars At June 30, 2011At December 31,

2010

1 Paid-up Capital 5,941,654,350 4,501,253,300

2 Total Capital 10,843,328,981 10,033,986,280

3 Capital surplus / (Deficit) 1,953,317,981 1,760,322,280

4 Total Assets 95,118,945,559 83,554,177,553

5 Total Deposits 76,514,359,374 67,961,244,777

6 Total Loans & Advances 67,084,100,333 63,230,141,628

7 Total Contingent Liabilities 19,603,038,708 17,492,550,575

8 Credit Deposit Ratio 0.88:01 0.93:01

9Percentage of classified loans against total Loans &

Advances 4.87% 2.27%

10 Profit after tax & provision 812,193,769 2,371,678,769

11Amount of classified loan during

current year3,225,499,000 1,425,280,000

12 Provision kept against classified Loans 1,337,100,001 742,802,000

13 Provision surplus / (deficit) - -

14 Cost of Fund ( %) 10.53% 9.31%

15 Interest earning Assets 86,644,364,550 74,691,625,856

16 Non-interest earning Assets 8,474,581,009 8,862,551,697

17 Return on Investment (ROI) 11.34% 14.95%

18 Return on Assets (ROA) 1.71% 2.84%

19 Income from Investment 1,057,474,096 1,642,016,484

20 Earning per Share ( Taka) 1.37 5.33

21 Net income per Share (Taka) 1.37 5.33

22 Price Earning Ratio (Times) - 12.91

Sd/-


Chief Financial Officer

Mohammed Nurul Amin

Managing Director &

Chief Executive Officer

National Credit and Commerce Bank Limited and its Subsidiary

CONSOLIDATED FINANCIAL HIGHLIGHTSFor the period ended June 30, 2011

A.K. Md. Siddique

Sd/-

Annexure-L

Sl.

No. ParticularsAt June 30,

2011

At December 31,

2010

1 Paid-up Capital 5,941,654,350 4,501,253,300

2 Total Capital 10,843,328,981 10,033,986,280

3 Capital surplus / (Deficit) 1,953,317,981 1,760,322,280

4 Total Assets 94,974,352,845 83,554,177,553

5 Total Deposits 76,469,631,744 67,961,244,777

6 Total Loans & Advances 66,689,531,578 63,230,141,628

7 Total Contingent Liabilities 19,603,038,708 17,492,550,575

8 Credit Deposit Ratio 0.87:01 0.93:01

9Percentage of classified loans against total Loans &

Advances 4.87% 2.27%

10 Profit after tax & provision 730,327,091 2,371,678,769

11Amount of classified loan during

current year3,225,499,000 1,425,280,000

12 Provision kept against classified Loans 1,337,100,001 742,802,000

13 Provision surplus / (deficit) - -

14 Cost of Fund ( %) 10.53% 9.31%

15 Interest earning Assets 86,227,171,327 74,691,625,856

16 Non-interest earning Assets 8,747,181,518 8,862,551,697

17 Return on Investment (ROI) 11.35% 14.95%

18 Return on Assets (ROA) 1.54% 2.84%

19 Income from Investment 1,057,474,096 1,642,016,484

20 Earning per Share ( Taka) 1.23 5.33

21 Net income per Share (Taka) 1.23 5.33

22 Price Earning Ratio (Times) - 12.91

Sd/-


FINANCIAL HIGHLIGHTS OF THE BANKAs on June 30, 2011

A.K. Md. Siddique

Sd/-


Chief Financial Officer

Mohammed Nurul Amin

Managing Director &

Chief Executive Officer

Annexure-M-1

30 June 2011

Taka

Share Capital 3 250,000,000

Retained Earnings 4 81,866,677

Total Sources of Funds 331,866,677

APPLICATION OF FUNDS:

Non current Assets

Property, Plant & Equipment 5 14,680,184

Investments-Memberships at cost 6 19,401,385

Intangible Assets 7 672,000

Preliminery Expenses 8 3,185,367

37,938,936

Current Assets

Advance and prepayments 9 10,000

Margin Loan to Customer 10 2,823,976,005

Accounts Receivable 11 19,947,578

Cash and Cash Equivalents 12 3,229,031

2,847,162,614

Current Liabilities

Accounts payable 13 111,377,995

Short Term Loan 14 2,429,407,250

Provision for Expenses 15 557,652

Provision for Income Tax 16 11,892,975

2,553,235,872

Net Current Assets 293,926,742

Total Application of Funds 331,865,678

Sd/- Sd/-

Kazi Rafiquzzaman Md. Manjum Ali

Vice President Senior Vice President


Statement of Financial Position

As on 30 June 2011

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

NotesSOURCES OF FUNDS:

1

Annexure-M-2

30 June 2011Taka

Operating Income:

Brokerage Commission 17 71,006,718

Interest on Margin Loan 18 166,706,647

Other Operating Income 19 2,032,788

239,746,153

Less: Operating Expenses 20 4,411,388

Net Income from Operation 235,334,765

Less: Office & Administrative Expenses 21 20,486,357

Profit before Financial Expenses 214,848,408

Less: Financial Expenses 22 112,127,087

Net Profit before Tax 102,721,321

Less: Provision for Income Tax 23 20,854,643

Net Profit/(Loss) after Tax 81,866,678

Sd/- Sd/-



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

NCCB Securities and Financial Services LimitedStatement of Comprehensive Income

For the Period from 07 March to 30 June 2011

Notes

2

Annexure-M-3

30 June 2011 Taka

A. Cash Flow from Operating Activities:

Net Profit/(Loss) after Tax 81,866,677

Adjustments for:

Depreciation 878,020

82,744,697

Changes in Current Assets and Liabilities:

Increase in:

Receivable from Client (2,823,976,005)

Receivable from DSE (16,549,353)

Receivable from CSE (3,398,225)

Advance against Office Rent (11,000)

DSE Membership (400,385)

CSE Membership (19,001,000)

Increase in:

Accounts payable 111,377,995

Liabilities for Expenses 557,652

Provision for expenses 11,892,976

Net cash flow from operating activities (2,656,762,648)

B. Net Cash flow from Investing Activities

Acquisition of Fixed Assets (15,558,204)

Intangible Assets (672,000)

Preliminery Expenses (3,185,367)

Net cash used in investing activities (19,415,571)

C. Cash Flow from Financing Activities:

Loan from NCC Bank 2,429,407,250

Issue of Share Capital 250,000,000

Net cash flow from financing activities 2,679,407,250

Net Increase / Decrease, Cash or Cash Equivalent (A+B+C) 3,229,031

Opening Cash and Cash equivalents -

Closing Cash & Cash Equivalents 3,229,031

Sd/- Sd/-



Statement of Cash Flows



3

Annexure-M-4

Particulars Paid up Capital Statutory

Reserve

General

Reserve

Other

Reserve

Retained

Earnings Total

Tk. Tk. Tk. Tk. Tk. Tk.

Opening Balance 07.03.2011 250,000,000 - - - - 250,000,000

Net Profit after Tax - - - - 81,866,678 81,866,678

Balance as of March 31, 2011 250,000,000 - - - 81,866,678 331,866,678

Sd/- Sd/-




Statement of Changes in Equity


4

Annexure-M-501

1.1

1.2

2

2.1

2.2 Functional and presentational currency

2.3 Use of estimates and judgments

Revenue Recognition:

2.4 Cash flow statement:

2.5 Property, plant and equipment

Recognition and measurement

Subsequent costs

NCCB Securities and Financial Services Ltd. as a Subsidiary company of NCC Bank Limited has been

incorporated as a private limited company with the Registrar of Joint Stock Companies and Firms,

Dhaka, Bangladesh bearing Registration No.C - 83683/10 dated April 04, 2010 under the Companies

Act, 1994 effect from 07 March 2011 having registered office at 195, Sena Kalayan Bhaban, Suite #

1504 (15th floor), Motijheel C/A, Dhaka-1000.

Significant Accounting Policies & Other Material Information:

Legal Form of the entity:

The Financial Statements, namely, Statement of Financial Position, Statement of Comprehensive

Income, Statement of Cash Flows, Statement of Changes in Equity and relevant notes thereto, of

NCCB Securities and Financial Services Limited are prepared on a going concern and accrual basis

under historical cost convention, Bangladesh Accounting Standards (BAS) as adopted by the Institute

of Chartered Accountants of Bangladesh (ICAB), Companies Act-1994, and other laws and rules

applicable thereto.

Nature of Business :

Significant Accounting Policies

The cost of replacing part of an item of property, plant and equipment is recognised in the carrying

amount of the item if it is probable that the future economic benefits embodied within the part will


Notes to the Financial Statements


Basis of Preparation of Financial Statements

The Main objective of the company is to act as a full fledged Stock Broker & Stock Dealer to execute

buy and sell order and to maintain own portfolio as well as customers portfolio under the discretion of

customers. The company also performs the other activities relates to Capital Market as and when

regulators permits the company to carry out activities as per their guidelines.

These financial statements are prepared in Bangladesh Taka (Taka/Tk), which is the Company’s

functional currency. All financial information presented in Taka has been rounded to the nearest

integer.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revision of accounting

estimates are recognized in the period in which the estimate is revised and in any future periods

affected.

ii Interest income on STD & Margin Loan Account is recognized when the respective banks credited

on accounts.

Cash flow statement has been prepared as per Bangladesh Accounting Standard BAS 7 Under Indirect

Method.

Income from brokerage commission is recognised on daily basis in the profit and loss account after

receiving the trading note of securities transacted from Dhaka Stock Exchange Limited & Chittagong

Stock Exchange Limited, at which point performance is assured to be completed.

The preparation of financial statements requires management to make judgments, estimates and

assumptions that affect the application of accounting policies and the reported amounts of assets,

liabilities, income and expenses. Actual results may differ from these estimates.

Items of property, plant and equipment are measured at cost less accumulated depreciation and

impairment losses, if any. Cost includes expenditures that are directly attributable to the acquisition

of the asset.

5

Depreciation

2.6 Intangible assets

Recognition and measurement

Amortisation of intangible assets

Intangible assets are amortised at the rate of 20% on diminishing balance

Provision for Current tax

2.7 General

ii. Figures have been rounded off to the nearest taka.

June 30, 2011 03 Share Capital

3.1 Authorised Capital

(10,000,000 shares @ of Tk. 100 each) 1,000,000,000

1,000,000,000

3.2 Issued, Subscribed and Paid up Capital(2,500,000 Shares @ of Tk. 100 each) 250,000,000

250,000,000

3.3 Particulars of Shareholders and their Shareholdings:

Shareholders Number of Share Amount in BDT

NCC Bank Limited 2,499,999 249,999,900 Mr. Gazi Hassan Mahmood 1 100

250,000,000 4 Retained Earnings

Opening balance - Add: net profit during the year 81,866,677 Closing retained earnings 81,866,677

5 Property, plant & Equipment

Property Plant & Equipment at Cost 22,045,263 Less: Accumulated Depreciation 7,365,079 Total: 14,680,184

Annexure-'I' may kindly be seen for details.

6 Investments-Memberships at cost:Membership of Dhaka Stock Exchange Limited 400,385 Membership of Chittagong Stock Exchange Limited 19,001,000

19,401,385

7 Intangible AssetsSoftware at cost 820,000 Less: Amortization during the period 148,000

672,000

8 Preliminary ExpensesTrade Licence & Tin Certificate 14,100 Securities & Exchange Comission Charge 90,000

Computer software acquired by the Company, which have finite useful lives, are measured at cost

less accumulated amortisation.

Depreciation is charged to property, plant and equipment & Furniture & Fixture on a diminishing

balance method at rates varying from 20% & 10% to 20%.

amount of the item if it is probable that the future economic benefits embodied within the part will

flow to the Company and its cost can be measured reliably. The costs of the day-to-day servicing of

property, plant and equipment are recognised in the profit and loss account as incurred.

Provision for tax is assessed under section 82C of the Income Tax Ordinance (ITO) 1984 on income

from company's normal course of business and at 37.5% on company's income from other sources.

Under section 82C, income tax deducted under certain sections of the ITO is treated as final

discharge of tax payer's tax liabilities from that source.

6

June 30, 2011 Registration fee RJSC 474,225 Stamp & Share Charges (Rah. & Assaciates) 85,000 Salman Siddiqur Rahman for TIN 6,000 Audit Fee (Rah. & Mostafa) 15,000 DSE Entrance Fee & Club Member Fee 1,500,000 Stock Broker Registration Fee 40,000

DSE ,CSE Membership & Transfer Fee 1,811,021

4,035,346

Less: Amortization during the period 849,979

3,185,367

9 Advance and Prepayment:

Suspense Account Sundry debtors 10,000

Security Deposit into T & T 1,000 11,000

10 Margin Loan to Clients

Margin Loan to Clients 2,823,976,005

11 Accounts Receivable

Receivable from Dhaka Stock Exchange Limited 16,549,353

Receivable from Chittagong Stock Exchange Limited 3,398,225

19,947,578

12 Cash and Cash equivalents

Cash in Hand 5,948

Cash at Bank Balances:

IFIC Bank Ltd. STD Bank A/C # 1090-000294-041 3,215,703

NCC Bank Limited Current Deposit A/C # 0002-0210024283 7,380

3,229,031

13 Accounts Payable

Security Deposit 24,677,630

Sundry Creditors 20,050,000

Payable to CDBL 3,704,551

Payable to CSE Spot 48,128

Payable to Suppliers 1,795,000

Payable to NCC Bank Limited 61,102,686

111,377,995

13.1 Payable to NCC Bank Ltd.

Fixed Assets 15,523,731

Profit earned from January 01, 2011 to March 06, 2011 45,578,955

61,102,686

14 Short Term Loan - Bank Overdraft

NCC Bank Ltd. A/C # 012-000-2511 2,429,407,250

2,429,407,250

15 Liabilities for expenses

Office Rent Expenses 1,713

LFA Expenses 149,400

Mobile Bill 34,212

Salary & Wages 372,327

557,652

16 Provision for Income TaxOpening balance - Add: provision made during the period 20,854,643

7

June 30, 2011 20,854,643

Less: Adjusted during the period - 20,854,643

Less: Advance income tax paid and deducted at sourcesOn Brokerage CommissionTax deducted by Dhaka Stock Exchange Limited 8,370,855 Tax deducted by Chittagong Stock Exchange Limited 590,813

8,961,668

Net balance at the end of the period 11,892,975

17 Brokerage Commission

Brokerage Commission DSE 66,277,174

Brokerage Commission CSE 4,729,544

71,006,718

18 Interest on Margin Loan 166,706,647

19 Other Operating Income

Account Opening Fee 95,000

Account Clossing Fee 79,838

BO Account Maintenance Fee 54,800

Service Charge 1,601,800

Margin Account Opening Fee 7,500

Postage Charge Recovery 3,030

Interest of IFIC Bank 190,820

2,032,788

20 Operating ExpensesHowla Charge DSE 784,154 Howla Charge CSE 72,108 Laga Charge DSE 3,348,342 Laga Charge CSE 206,784

4,411,388

21 Office & Administration ExpensesSalary & AllowancesBasic Salary 4,447,194 House Rent Allowance 1,295,158 Entertainment Allowance 234,940 Medical Allowance 472,081 P.F.Contribution 315,584 Casual Wages 109,568 Other Allowances 1,232,269

8,106,794

Rent,taxes,insurance,electricity etc.Rent Office 2,024,611 Taxes 19,082 Electricity Office 277,816

2,321,509

Postage, stamp, telecommunication etc.Postage 16,262 Telephone 72,988 Mobile 119,866 Internet 4,300

213,416

8

June 30, 2011

Stationery, printing, Advertisement etc.Stationery 223,523 Printing 120,845 Advertisement 11,592

355,960

Depreciation and Repair of Bank's assetsDepreciation 878,020 Repair and maintenance of fixed assets 3,161,301 Repair and maintenance of premises 551,150

4,590,471

Other ExpensesEntertainment 254,835 Car expenses 328,000 Papers and periodicals 28,469 Trade Subscription 191,000 Traveling & Conveyance 502,975 Carrying charge 7,740 Laundry and cleaning 12,651 Training expenses 13,575 Water, Sewerage and gas 88,460 CDBL charge 3,360,146 Utility charge 100,000 Liveries & Uniform 4,956 Other 5,400

Total: 4,898,207

Total Office & Administration Expenses 20,486,357

22 Financial Expenses

Interest on Bank Overdraft maintained with NCC Bank Limited, Motijheel Main Branch 112,057,248

Bank Charge 69,839

112,127,087

23 Related Party Transactions

Sd/- Sd/-Kazi Rafiquzzaman Md. Manjum Ali


NCCB Securities & Financial Services Limited (NCCBSFSL) is a fully owned subsidiary company of

National Credit and Commerce Bank Limited (NCCBL). NCCBLSFL was separated from NCCBL on

March 07, 2011. NCCBLSFL has availed BDT.2,429,407,249.63/- from NCCBL as short term loan for its

operating activities.

9

Annexure-M-6

Written Down

ValueBalance as on Addition/Disposal Balance as on Balance as on Charged for Balance as on As on

07.03.11 During the period 30.06.11 07.03.11 the period 30.06.11 30.06.11

Computer & Peripherals 5,780,700 - 5,780,700 10% 2,143,503 353,187 2,496,690 3,284,010

Office Equipment 6,897,414 9,300 6,906,714 20% 1,974,884 305,779 2,280,663 4,626,051

Furniture & Fixture 9,332,676 25,173 9,357,849 20% 2,368,672 219,054 2,587,726 6,770,123

Total: 22,010,790 34,473 22,045,263 6,487,059 878,020 7,365,079 14,680,184

Rate of

Depreciation

NCCB Securities and Financial Services LimitedSchedule of Property, Plant & Equipment

as on June 30, 2011

Cost DepreciationParticulars

9

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