auditors' report to the shareholders of islami bank bangladesh limited

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ISLAMI BANK BANGLADESH LIMITED LIQUIDITY STATEMENT Assets & Liabilities Maturity Analysis as at December 31, 2007 (Amount in Taka) Particulars Up to 1 Month 1 - 3 Months 3 - 12 Months 1 - 5 years More than Total Total 5 years 31.12.2007 31.12.2006 1 2 3 4 5 6 7 (2 + 3 + 4 + 5 + 6) 8 ASSETS Cash in Hand 2,907,141,037 - - - - 2,907,141,037 1,410,149,863 Balance with other Banks & Financial Institutions 13,636,231,954 2,727,246,391 1,818,164,260 - - 18,181,642,605 23,437,927,362 Money at Call & Short Notice - - - - - - - Investments (in Shares & Securities) - 3,000,000,000 17,000,000,000 - 365,710,399 20,365,710,399 3,557,760,399 Investments 3,623,015,240 10,144,442,672 40,577,770,687 50,722,213,358 39,853,167,639 144,920,609,595 113,575,071,129 Fixed Assets including Premises, Furniture and Fixtures - - 154,776,481 496,459,137 3,335,997,057 3,987,232,675 3,724,694,303 Other Assets 555,007,440 112,001,501 175,002,346 150,002,011 8,000,107 1,000,013,406 4,547,217,745 Non - Banking Assets - - - - - - - Total Assets 20,721,395,671 15,983,690,564 59,725,713,774 51,368,674,506 3,562,875,202 191,362,349,717 150,252,820,801 LIABILITIES Borrowing from Bangladesh Bank, other Banks, Financial - - - - - - - Institutions and Agents Deposits 8,316,264,315 14,969,275,766 54,887,344,476 48,816,471,527 39,335,930,208 166,325,286,292 132,419,403,524 Other Accounts - - - - - - - Provision & Other Liabilities 2,039,145,434 713,700,902 3,568,504,510 1,835,230,892 2,039,145,433 10,195,727,171 7,826,184,480 Mudaraba Perpetual Bond - - - - 3,000,000,000 3,000,000,000 - Total Liabilities 10,355,409,749 15,682,976,668 58,455,848,987 50,651,702,418 44,375,075,641 179,521,013,463 140,245,588,004 Net Liquidity Gap 10,365,985,922 300,713,896 1,269,864,787 716,972,088 (812,200,439) 11,841,336,254 10,007,232,797 Kazi Harun-ar-Rashed Engr. Md. Eskander Ali Khan Md. Shamsul Huda, FCA M. Fariduddin Ahmed Director Director Director Managing Director Signed as per our annexed report of same date Howladar Yunus & Co. Aziz Halim Khair Choudhury Chartered Accountants Chartered Accountants Dated, Dhaka April 27 2008
ISLAMI BANK BANGLADESH LIMITED Notes to the Financial Statements For the year ended December 31, 2007 1.0 Status of the Bank Islami Bank Bangladesh Limited was established as a Public Limited Banking Company in Bangladesh in 1983 as the first interest free Shari’ah based Scheduled Commercial Bank in South East Asia. Naturally, its modus operandi is substantially different from those of other conventional Commercial Banks. The Bank conducts its business on the Shari’ah principles of Mudaraba, Musharaka, Bai-Murabaha, Bai-Muajjal, Hire Purchase under Shirkatul Melk and Bai-Salam etc. There is a Shari’ah Council in the Bank who ensures that the activities of the Bank are being conducted on the precepts of Islam. The Shari’ah Council consists of prominent Ulema, reputed Bankers, renowned Lawyers and eminent Economists. There are two Stock Exchanges in Bangladesh viz. Dhaka Stock Exchange Limited and Chittagong Stock Exchange Limited and the Bank is listed with both the Stock Exchanges. The Bank carries out its business activities through its Head Office in Dhaka having 186 Branches in Bangladesh. The principal place of business is the Registered Office at Islami Bank Tower, 40, Dilkusha Commercial Area, Dhaka-1000, Bangladesh. 2.0 Nature of business All kinds of commercial banking services are provided by the Bank to the customers following the principles of Islamic Shari’ah, the provisions of the Bank Company Act 1991 and Bangladesh Bank’s directives. 3.0 Significant Accounting Policies 3.1 Preparation of Financial Statements These Financial Statements have been prepared on a going concern basis under the historical cost convention as modified to include the revaluation of land & building and Shares & Securities as well as Generally Accepted Accounting Principles in consistent with those of previous year. Although the operations of the bank are in strict compliance with the rules of Islamic Shari’ah, the Financial Statements have been prepared basically as per provisions of Bank Company Act 1991 as amended by Bangladesh Bank BRPD Circular No- 14 dated 25.06.2003, Bangladesh Bank’s other Circulars / Instructions and following International Financial Reporting Standards (IFRS) adopted as Bangladesh Accounting Standard (BAS) by the Institute of Chartered Accountants of Bangladesh, the Companies Act 1994, the Securities and Exchange Rules 1987, Dhaka and Chittagong Stock Exchange’s Listing Regulations and other laws and rules applicable in Bangladesh, Financial Accounting Standard issued by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI), Manama, Bahrain as a member of that organization. A separate set of records for consolidating the statement of Affairs and Income & Expenditure Statement of the Branches are maintained at the Head Office of the Bank at Dhaka from which the Financial Statements are drawn up.
Page 1 and 2: AUDITORS’ REPORT TO THE SHAREHOLD
Page 3 and 4: ISLAMI BANK BANGLADESH LIMITED Bala
Page 5 and 6: Bills for Collection 7,397,027,013
Page 7 and 8: Total Profit/(Loss) before Taxes 3,
Page 9 and 10: Exchange Equalization Account 38,40
Page 11: Cash flows from Financing Activitie
Page 15 and 16: a) Provident Fund The provident fun
Page 17 and 18: 5.0 Related Party Disclosure as per
Page 19 and 20: ♦ Investment to related parties i
Page 21 and 22: 6.7 Credit Rating Report Credit Rat
Page 23 and 24: Amount in Taka as at December 31, 2
Page 25 and 26: 10.1 Maturity-wise Classification i
Page 27 and 28: Sugar Refinery Ltd 2,830.00 444.20
Page 29 and 30: iv) Industry -wise Classification o
Page 31 and 32: Amount in Taka as at December 31, 2
Page 33 and 34: Less: Accumulated Depreciation Net
Page 35 and 36: ii) iii) iv) v) vi) Demand With a r
Page 37 and 38: 17.0 i) ii) iii) iv) v) vi) vii) vi
Page 39 and 40: i) Provision held at the beginning
Page 41 and 42: i) Balance at the beginning of the
Page 43 and 44: 20.3 Shares 30,001 to 40,000 4 Shar
Page 45 and 46: Opening Balance 419,618,687 464,760
Page 47 and 48: Sub Total (ii) 46,705,393 75,772,83
Page 49 and 50: Income from Profit Fluctuation Less
Page 51 and 52: (Subscription) xv) Staff Welfare 16
Page 53 and 54: (a) Attributable Profit for the yea
Page 55: Annexure-B Islami Bank Bangladesh L

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