Grameen Bank | Banking for the poor - Audit Report 2007
Page 1 of 1
Home | FAQs | Feedback | Sitemap | Spanish | Contact Us
search...
About Us
Methodology
Audit Report 2007
Auditors' Report
Balance Sheet
Profit and Loss Account
Cash Flow Statement
Change in Equity
Statement of Liquidity
Comparative Value
Added Statement
Notes to the Financial
Statement
Annexure-A
Data & Reports
Microcredit
Training
Founder
Audit Report 2007
Quick Links
Nobel Foundation Site
Founder's Website
Method of Action
What is Microcredit?
Auditors’ Report and
Audited Financial Statements
16 Decisions
Grameen Mutual Fund
One :Scheme Two
OF
GRAMEEN BANK
For the year ended 31st December 2007
24 June, 2008
GF USA
AUSTRALIA
Trademarks & Copyright © 1998 Grameen Communications. All rights reserved. | Last update June 21, 2009.
http://www.grameen-info.org/index.php?option=com_content&task=view&id=493&Itemi...
1/19/2010
Grameen Bank | Banking for the poor - Balance Sheet
Page 1 of 2
Home | FAQs | Feedback | Sitemap | Spanish | Contact Us
search...
About Us
Methodology
Audit Report 2007
Auditors' Report
Balance Sheet
Profit and Loss Account
Cash Flow Statement
Change in Equity
Statement of Liquidity
Comparative Value
Added Statement
Notes to the Financial
Statement
Annexure-A
Data & Reports
Microcredit
Training
Founder
Balance Sheet
Quick Links
Nobel Foundation Site
Founder's Website
Method of Action
What is Microcredit?
16 Decisions
GRAMEEN BANK
Grameen Mutual Fund
Balance Sheet
One :Scheme Two
For the year ended 31 December 2007
2007
Taka
2006
Taka
Notes
6,799,759 1,215,684
3,593,762 281,447
4
926,004,259 898,562,551
5
24,465,809,686 19,744,015,990
6
37,546,479,706 34,144,897,122
7
PROPERTY AND ASSETS
Cash in hand
Balances with Bangladesh
Bank-in local currency
Balances with other Banks
and Financial Institutions
Investments-at cost
Loans and advanceswithout collateral
Fixed Assets including
premises, furniture and
fixtures net off
accumulated depreciation
(Annexure-A)
Other assets
CAPITAL AND LIABILITIES
Borrowings from banks
and other institutions
Members Deposit
Non-Members Deposit
Other Funds
Deposits and other funds
Other liabilities
Shareholders' fund
Paid up Capital
Capital and other
reserves
Retained Surplus
Guarantee
9
12
29,604,562,979 27,321,930,824
22,473,343,451 17,020,371,677
3,562,848,773 3,308,399,947
55,640,755,203 47,650,702,448
5,653,784,211 3,766,402,005
318,000,000 318,000,000
13
14
94,100,000 125,000,000
5,865,882,878 6,111,182,878
68,953,698,757 59,383,621,728
5,719,054 13,541,883
10
11
15
CONTINGENT LIABILITIES
1,114,517,485
1,045,276,835
4,890,494,100 3,549,372,099
68,953,698,757 59,383,621,728
8
1,793,276,465 5,453,782,878 1,855,334,397
5,668,182,878
The annexed notes 1 to 29 form an integral part of these financial
statements.
(M. Shahjahan)
(Dr. Muhammad Yunus)
General Manager Director Director Managing Director
http://www.grameen-info.org/index.php?option=com_content&task=view&id=491&Itemi...
1/19/2010
Grameen Bank | Banking for the poor - Balance Sheet
Page 2 of 2
Dhaka, 24 June, 2008
GF USA
AUSTRALIA
Trademarks & Copyright © 1998 Grameen Communications. All rights reserved. | Last update June 21, 2009.
http://www.grameen-info.org/index.php?option=com_content&task=view&id=491&Itemi...
1/19/2010
Grameen Bank | Banking for the poor - Profit and Loss Account
Page 1 of 2
Home | FAQs | Feedback | Sitemap | Spanish | Contact Us
search...
About Us
Methodology
Audit Report 2007
Auditors' Report
Balance Sheet
Profit and Loss Account
Cash Flow Statement
Change in Equity
Statement of Liquidity
Comparative Value
Added Statement
Notes to the Financial
Statement
Annexure-A
Data & Reports
Microcredit
Training
Founder
Profit and Loss Account
Quick Links
Nobel Foundation Site
Founder's Website
Method of Action
What is Microcredit?
GRAMEEN BANK
16 Decisions
Profit and Loss Account
Grameen Mutual Fund
For the year ended 31 December 2007
Notes
2007
Taka 2006
Taka
One :Scheme Two
6,790,936,211 6,335,566,324
(4,506,165,656) (3,471,108,927)
2,284,770,555 2,864,457,397
2,904,090,130 1,693,658,097
66,330,090
18 878,176,622 1,401,559,519
6,133,367,397 5,959,675,013
OPERATING INCOME
IINTEREST INCOME
LESS: INTEREST/PROFIT PAID ON DEPOSITS &
BORROWINGS ETC.
16
17
Net Interest Income
Income from Investments in fixed
deposits
Income from Investments in Grameen
Mutual Fund-One
Other income
Total operating income
LESS: OPERATING EXPENSES
Salaries and other related expenses
Rent, rates, taxes, vehicle insurance,
utilities etc.
Legal and professional expenses
Auditors' fees
Stationery, printing, advertisement
etc.
Managing Director's salary & allowances
Directors’ remuneration
Repairs & maintenance of fixed assets
Depreciation of fixed assets (Annex-A)
Other expenses
Total Operating Expenses
Profit before provision
Provisions for loans and advances
Specific Provision
General Provision
NET PROFIT
APPROPRIATIONS
NET PROFIT TRASFERRED TO
Retained earnings brought forward
from previous year
Dividend Equalization fund
Proposed cash dividend @ 20% for the
year 2007
General reserve
Employees Welfare fund
Retained surplus
2,472,022,999 2,024,528,593
83,419,842
68,569,867
96,117,235 74,844,314
1,216,380 804,650
111,236,170 98,110,380
531,080 471,750
148,000 78,000
36,491,171 33,671,316
64,396,885 51,704,234
824,048,427 626,028,872
3,689,628,189 2,978,811,976
2,443,739,208 2,980,863,037
2,349,698,239 1,499,181,910
(12,873,161) 83,526,097
2,336,825,078 1,582,708,007
106,914,130 1,398,155,030
106,914,130 1,398,155,030
94,100,000
30,000,000 636,000,000
318,000,000
63,600,000
10,000,000 318,000,000
3,314,130 1,155,030
106,914,130 1,273,155,030
94,100,000 125,000,000
19
20
21
22
23
24
25
26
27
14
The annexed notes 1 to 30 form an integral part of these financial statements.
(M. Shahjahan)
General Manager
Director
Director
(Dr. Muhammad Yunus)
Managing Director
http://www.grameen-info.org/index.php?option=com_content&task=view&id=490&Itemi...
1/19/2010
Grameen Bank | Banking for the poor - Profit and Loss Account
Page 2 of 2
Dhaka, 24 June, 2008
GF USA
AUSTRALIA
Trademarks & Copyright © 1998 Grameen Communications. All rights reserved. | Last update June 21, 2009.
http://www.grameen-info.org/index.php?option=com_content&task=view&id=490&Itemi...
1/19/2010
Grameen Bank | Banking for the poor - Cash Flow Statement
Page 1 of 1
Home | FAQs | Feedback | Sitemap | Spanish | Contact Us
search...
About Us
Methodology
Audit Report 2007
Auditors' Report
Balance Sheet
Profit and Loss Account
Cash Flow Statement
Change in Equity
Statement of Liquidity
Comparative Value
Added Statement
Notes to the Financial
Statement
Annexure-A
Data & Reports
Microcredit
Training
Founder
Cash Flow Statement
Quick Links
Nobel Foundation Site
Founder's Website
GRAMEEN BANK
What is Microcredit?
Cash Flow Statement
16 Decisions
For the year ended 31 December 2007
Grameen Mutual Fund
2007
Taka
Notes Method of Action
2006
Taka
One :Scheme Two
A)
CASH FLOW FROM OPERATING ACTIVITIES
Interest received
Interest paid
Cash paid to employees
Other Expenses
Other income
Cash generated from operating activities
Loans and advances
Other assets
Deposits and other funds
Other liabilities
28
29
Net cash received from operating
activities
B)
CASH FLOW FROM INVESTING ACTIVITIES
Investments
Additions to Tangible Fixed Assets
Sales proceeds of Tangible Fixed Assets
Net cash outflow from investing activities
C)
CASH FLOW FROM FINANCING ACTIVITIES
Share capital
Borrowings from Banks and Foreign
Institutions
Capital and other reserves
D)
E)
F)
5,302,727,261
Net Cash /(out flow) from financing activities
Net increase/in cash and cash equivalents
(A+B+C)
Opening cash and cash equivalents
Cash and bank balances at the end of the
period
30
9,880,474,444
(4,721,793,696) (9,756,799,045)
(126,788,439) (152,158,397)
(6,849,096) 10,482,619
(4,855,431,231) (9,898,474,823)
- (62,057,932)
(62,057,932)
(348,900,000) (62,057,932)
(410,957,932) 8,546,529,434 8,029,224,421
(4,506,165,656) (3,471,108,927)
(2,472,702,079) (2,025,078,343)
(1,152,529,225) (902,029,399)
878,176,622 1,401,559,519
1,293,309,096 3,032,567,271
(3,401,582,584) (5,248,138,000)
255,291,223
(126,295,004) 7,986,738,625 13,038,458,034
(449,442,872) (1,197,704,084)
4,009,418,165 6,847,907,173
36,338,098
900,059,682 936,397,780
(80,058,311)
980,117,993
900,059,682
The annexed notes 1 to 30 form an integral part of these financial statements.
(M. Shahjahan)
(Dr. Muhammad
Yunus)
General Manager
Director
Director
Managing Director
GF USA
AUSTRALIA
Trademarks & Copyright © 1998 Grameen Communications. All rights reserved. | Last update June 21, 2009.
http://www.grameen-info.org/index.php?option=com_content&task=view&id=489&Itemi...
1/19/2010
Grameen Bank | Banking for the poor - Change in Equity
Page 1 of 1
Home | FAQs | Feedback | Sitemap | Spanish | Contact Us
search...
About Us
Methodology
Audit Report 2007
Auditors' Report
Balance Sheet
Profit and Loss Account
Cash Flow Statement
Change in Equity
Statement of Liquidity
Comparative Value
Added Statement
Notes to the Financial
Statement
Annexure-A
Data & Reports
Microcredit
Training
Founder
Change in Equity
GRAMEEN BANK
Cash Flow Statement
For the year ended 31 December 2007
Particulars
Paid up Capital
Capital reserve
Balance at 1
January 2007 (Note 318,000,000 4,280,409,577
14)
Retained balance
318,000,000 4,280,409,577 Net profit for the
- - year
Proposed dividend - - General reserve
- - Employees welfare
fund
- - Dividend
- - equalization fund
Balance as at 31
318,000,000
4,280,409,577
December 2007
General reserve
Dividend equalization
fund
Proposed dividend
Other reserve
318,000,000
636,000,000
318,000,000 636,000,000 - - - 10,000,000 - - 63,600,000 - - - (63,600,000)
(10,000,000)
- - - - (3,314,130)
- (30,000,000)
- 328,000,000
30,000,000 666,000,000
- 115,773,301
- 115,773,301 - - Retained
- 63,600,000
115,773,301
94,100,000
94,100,000
106,914,130
94,100,000
The annexed notes 1 to 30 form an integral part of these financial statements.
(M. Shahjahan)
General Manager
Director
Director
GF USA
AUSTRALIA
Trademarks & Copyright © 1998 Grameen Communications. All rights reserved. | Last update June 21, 2009.
http://www.grameen-info.org/index.php?option=com_content&task=view&id=488&Itemi...
1/19/2010
Grameen Bank | Banking for the poor - Statement of Liquidity
Page 1 of 1
Home | FAQs | Feedback | Sitemap | Spanish | Contact Us
search...
About Us
Methodology
Audit Report 2007
Auditors' Report
Balance Sheet
Profit and Loss Account
Cash Flow Statement
Change in Equity
Statement of Liquidity
Comparative Value
Added Statement
Notes to the Financial
Statement
Annexure-A
Data & Reports
Microcredit
Training
Founder
Statement of Liquidity
GRAMEEN BANK
Statement of Liquidity
For the year ended 31 December 2007
Particulars
Up to 1 month
1-3 months 3-12 months 1-5 years Assets
Cash in hand
Balances with Bangladesh Bank
Balances with other Banks and Financial Institutions
Investment at cost
Loans and advances
Fixed Assets including premises, furniture and
fixtures net off accumulated depreciation
Other assets
Non-Banking Assets
Total assets (A)
Liabilities
Borrowings from banks and other institutions
Deposits and other funds
Other liabilities
Total liabilities (B)
Net Liquidity Gap (A-B)
6,799,759
3,593,762
101,860,468
3,032,564,001
2,331,636,391
824,143,791
3,634,946,368
4,682,036,020
17,637,799,317
21,146,177,371
156,500,000
9,011,155,127
128,169,510 86,731,451 604,562,319 1,303,870,520 2,158,121,458 5,563,185,832 9,745,688,498 40,087,847,208 11,453,946,095 31,028,966 62,057,932 310,289,660 1,389,899,907
2,369,512,704 8,282,384,285 23,345,182,581 14,842,397,169 6,801,278,464
732,644,748 74,350,000 1,528,072,682 3,318,716,781 3,102,157,452 8,387,763,251 24,935,313,195 18,471,403,610 2,461,028,380 1,357,925,247 15,152,534,013 (7,017,457,515) (6,088,147,247)
The annexed notes 1 to 29 form an integral part of these financial statements.
(M. Shahjahan)
General Manager
Director
Director
GF USA
AUSTRALIA
Trademarks & Copyright © 1998 Grameen Communications. All rights reserved. | Last update June 21, 2009.
http://www.grameen-info.org/index.php?option=com_content&task=view&id=487&Itemi...
1/19/2010
Grameen Bank | Banking for the poor - Comparative Value Added Statement
Page 1 of 1
Home | FAQs | Feedback | Sitemap | Spanish | Contact Us
search...
About Us
Methodology
Audit Report 2007
Auditors' Report
Balance Sheet
Profit and Loss Account
Cash Flow Statement
Change in Equity
Statement of Liquidity
Comparative Value
Added Statement
Notes to the Financial
Statement
Annexure-A
Data & Reports
Microcredit
Training
Founder
Comparative Value Added Statement
Quick Links
Nobel Foundation Site
Founder's Website
GRAMEEN BANK
16 Decisions
For the year ended 31 December 2007
Grameen Mutual Fund
2007 Taka
2006
Taka
Income from Banking Services
Interest income
Interest income from investment
Other operating income
What is Microcredit?
Comparative Value Added Statement
Method of Action
One :Scheme Two
6,790,936,211 6,335,566,324
2,970,420,220 1,693,658,097
878,176,622 1,401,559,519
10,639,533,053 9,430,783,940
Interest paid on deposits & borrowings 4,506,165,656 3,471,108,927
Rent, taxes, insurance & utilities etc.
95,057,383 81,566,424
Legal and professional expenses
96,117,235 74,844,314
Auditors' fees
1,216,380 804,650
Stationery, printing, advertisement etc. 111,236,170 98,110,380
Repairs & maintenance of fixed assets
36,491,171 33,671,316
Directors’ remuneration
148,000 78,000
Other expenses
812,410,886 613,032,315
5,658,842,881 4,373,216,326
Value added by the Banking Services
4,980,690,172 3,474,859,607
Less: loan loss and provisions
Provision for bad and doubtful debts
(2,336,825,078) (1,582,708,007)
Value Added
2,643,865,094 2,708,886,800
Less: Cost of services & Supplies
Distribution of value addition
Employees-as salaries and other related
expenses
Net profit for the year
(Appropriationable)
Depreciation
2,472,554,079
2,025,000,343
106,914,130
1,398,155,030
64,396,885 51,704,234
2,643,865,094 3,474,859,607
The annexed notes 1 to 29 form an integral
statements.
(M. Shahjahan)
General Manager
Director
Director
part of these financial
(Dr. Muhammad Yunus)
Managing Director
GF USA
AUSTRALIA
Trademarks & Copyright © 1998 Grameen Communications. All rights reserved. | Last update June 21, 2009.
http://www.grameen-info.org/index.php?option=com_content&task=view&id=486&Itemi...
1/19/2010
Ahmad & Ahmad
Chartered Accountants
GRAMEEN BANK
Notes to the financial statements
For the year ended 31 December 2007
1.00 BACKGROUND
1.01 Legal form of the enterprise
Grameen Bank was established as a body corporate under the Grameen Bank Ordinance
1983. Initially the authorized capital of the bank was Tk 100 million and paid-up capital was
Tk. 30 million. At present the bank’s authorized capital is Tk. 500m and paid up capital is Tk.
318 m. Members hold 94.34 percent of Grameen Bank shares. The remaining 5.66 percent is
held by the Government of Bangladesh. The board of the bank consists of 13 members: the
Managing Director, three members including the chairman nominated by the government and
nine members elected from the borrower shareholders.
1.02 Nature of business
The principal activity of the bank is to provide credit without collateral to landless persons for
all types of economic activities. The bank also accepts deposits but excluding business in
foreign exchange transactions, carries out survey and research, issue publications and
maintaining statistics with a view to improving the economic condition of the landless persons.
The bank undertakes income-generating projects for landless persons, invests its funds in
Government Securities and provides professional counseling to landless persons regarding
investments in small business and cottage industries. Grameen Bank now operates 39 Zonal
Offices, 257 Area Offices and 2,481 branch offices. The bank offers four types of loans such
as basic loans, housing loans, higher education loans and struggling members’ loans. Loans
and advances and deposits as at 31 December 2007 were Tk. 37,546,479,706 and
52,077,906,430 respectively. As on 31 December 2007, out of 2,481 branches 1,466
registered profits. The remaining 1,015 branches were not profitable. However, it must be
taken into consideration that during the year the bank opened 160 new branches.
2.00 Risk Management
In the ordinary course of business, the bank is exposed to a variety of risks the most important
of which are credit risk, operational risk, and solvency risk. These risks are being identified,
measured and monitored through various control mechanisms across the bank in order to
assess the quality of products offered.
10
Ahmad & Ahmad
Chartered Accountants
2.01 Credit Risk
Credit risk arises mainly from micro-credit loan provided to the members of Grameen Bank.
This can be described as potential loss arising from the failure of a counter party to perform as
contractual agreement with the bank. The failure may result unwillingness of a counter party or
decline in his/her financial condition in adverse environment. Therefore, the Bank’s credit risk
management activities have been designed to address all these issues.
The officers/executive involved in credit related activities including credit approval,
administration, monitoring and recovery facilities are approved by the different level of the
management. An effective assessment is done before sanction of credit facilities to the
members is done by borrower financial condition, historical performance etc. The process
starts at the branch manager and approved by the competent authority. Credit approval
authority has been delegated to individual executives by the approval of the board of directors.
Internal audit is conducted in periodical intervals to ensure compliance of Bank’s and
regulatory policies. Loans are classified as per Grameen Bank Loan Policy Guidelines.
2.02 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. The liquidity management is monitored by
the Fund unit on a regular basis.
2.03 Operational Risk
Operational risk may arise from error and fraud due to lack of internal control and compliance.
Management through different department controls operational procedures of the bank. Audit
department undertake periodical and special audit of branches and departments of the Head
Office for review of the operation and compliance of the statutory requirements. The Managing
Director subsequently reviews the report of the audit department and report to the board of
directors
2.04 Internal audit
Internal audit is a part of the internal control system, which is introduced in large business
entities to detect any error or fraud at an early stage. At present, the Internal Audit Division of
Grameen Bank is characterized by two-tier structure namely central audit and zonal audit.
Central audit conducts the audit of different divisions at the head office, zonal offices and their
area offices. Moreover, Central audit office supervises, advises, directs and provides
11
Ahmad & Ahmad
Chartered Accountants
necessary guidance to zonal audit offices. The zonal audit office audits all branches within the
zone. Central and zonal audit offices execute complete audits and briefs audits to monitor
operations and review compliance of statutory requirements. The Internal Audit Division works
under the direct supervision of the Managing Director; however, it is completely independent
in its work.
3.00 Significant accounting policies
3.01 Basis of preparation and presentation of financial statements
The accompanying financial statements comprising the Balance Sheet, Profit and Loss
Account, Cash Flow Statement, Statement of Changes in Equity, Comparative Value Added
Statement and Notes thereto have been prepared in accordance with Bangladesh
Accounting Standards (BASs) on a going concern basis under the historical cost
convention.
3.02 Basis of consolidation
A separate set of records for consolidation of the statement of affairs and income &
expenditure account of the branches are maintained at the head office of the bank based on
which these financial statements have been prepared.
3.03 Tax exemption
Grameen bank is presently enjoying unconditional tax exemptions of income tax, super tax
and business profit tax till 30 June 2008. This is contained in the Ministry of Finance
notification vide SRO no. 188/Law/2006 dated 30 July 2006.
3.04 Rehabilitation fund
Rehabilitation fund consists of transfer from general reserve and tax provision made for 1997
and 1998 and transfer of entire revenue profit from 1999 to 2005 in order to comply with the
requirement for tax exemption allowed by the Ministry of Finance. The Rehabilitation Fund is
to be utilized for the purpose of rehabilitation of members affected due to natural disasters.
3.05 Net profit
During the year 2007, Grameen Bank has earned net profit amounting to Tk, 10.69 crores
while profit for the year 2006, was Tk. 139.82 crores. Profit for the year 2007 has decreased
from the preceding year due to adverse affects of i) devastating flood for two times, ii)
devastation caused by cyclone Sidr, and iii) fierce competition among the mobile phone
operators in the country leading to significant reduction in mobile phone income.
12
Ahmad & Ahmad
Chartered Accountants
3.06 Profit Appropriation
Government of the People’s Republic of Bangladesh permits Grameen Bank unconditioned
income tax exemption from January 1, 2006 to June 30, 2008. This is contained in the Ministry
of Finance notification vide SRO no. 188/Law/2006 dated July 30, 2006. Previously Grameen
Bank enjoyed income tax exemption from 1997 to 2005 subject to the condition that the Bank
will transfer its entire profits to a Rehabilitation Fund. In 2007, Bank has made a net profit of
Tk. 106,914,130 as per Profit and Loss A/C. At present, there is no condition in this affair, the
Bank decided to allocate its profit in the following manner:
Amount (Tk.)
Proposed Dividend
63,600,000
Dividend Equalization Fund
30,000,000
General Reserve
10,000,000
Employees welfare Fund
3,314,130
106,914,130
3.07 Foreign fund
Foreign funds were received from the foreign donor agencies (IFAD 161 BA, IFAD 239 BA,
NORAD, SIDA, Dutch Grant and JBIC) under the subsidiary loan agreement with the
Government of the Peoples Republic of Bangladesh. The terms for repayments, interest rates,
grace periods etc. have been set out in those agreements. The funds were disbursed to
Grameen Bank in equivalent Taka currencies and were accounted for at cost as and when
those funds were received. Consequently, no accounting treatment is required in respect of
exchange differences on foreign currencies and Grameen Bank need not to account for
exchange rate gain/loss on such differences as well.
3.08 Accruals & deferrals
Deferrals and accruals have been made as per the guidance of the BAS 1 Presentation of
Financial Statements. In order to meet their objectives, financial statements except for cash
flow statement and related information are prepared on accrual basis of accounting. Under the
basis, the effects of transactions and other events are recognized when they occur (and not
when cash or its equivalent is received or paid) and they are recorded in the accounting
records and reported in the financial statements of the periods to which they relate.
3.09 Reconciliation of inter branch transactions
Books of account with regard to inter branch are reconciled. Unreconciled entries are caused
by mismatching of original figures with corresponding ones, lack of original advice and
incomplete advice from branches.
13
Ahmad & Ahmad
Chartered Accountants
3.10 Cash Flow Statement
BAS 1 presentation of Financial Statement requires that a cash flow statement is to be
prepared as it provides information about cash flows of the enterprise that is useful in
providing users of financial statements with a basis to asses the ability of the enterprise to
generate cash and cash equivalents and the needs of the enterprise to utilize those cash
flows.
Cash flow statement has been prepared under the direct method for the period, classified by
operating, investing and financing activities as prescribed in paragraph 10 and 18(a) of BAS 7.
3.11 Liquidity Statement
The liquidity statement of assets and liabilities as on reporting date has been prepared on
residual maturity term as per following bases.
a. Balance with other banks and financial institutions, money at call notice of short notice, etc
are on their maturity term;
b. Investments are on the basis of their respective maturity;
c. Loans and advances/investments are on the basis of their repayment schedule;
d. Fixed assets are on the base of their useful lives;
e. Other assets are on the basis of their realization/amortization;
f. Borrowing from other banks, financial institutions, agents, etc. are as per as their
maturity/repayment terms;
g. Provisions and other liabilities are on the basis of their payment/adjustment schedule;
h. Deposits and other accounts are on the basis of their maturity term and past trend of
withdrawal by the depositors.
3.12 Provision for loan impairment
As per the guideline of paragraph 43 of BAS 30 Disclosures in the Financial Statements of
Banks and Similar Financial Institutions, specific provisions are made against non-performing
and problem loans on the basis of best estimate up to such amount as it is expected to cover
for the loss from non-performing and impaired loans and advances. No specific credit risk
provision for loan impairment is established to provide for management's estimate of loan
losses as soon as the recovery of an exposure is identified as doubtful.
As per the requirement of paragraph 49 of BAS 30 Disclosures in the Financial Statements of
Banks and Similar Financial Institutions when a loan is deemed uncollectible, it is written off
against the related provision for impairments. The bank writes off its non-performing and
problem loans after one year on overdue loan. Subsequent recoveries of such loans are
credited to the Profit and Loss Account and provision and reserve account.
14
Ahmad & Ahmad
Chartered Accountants
Provisions for loans & advances are made on the basis of year-end review by the
management and instructions contained in board resolution. The calculation rate is given
below:
a) Basic loans
Basic loan provision has been made @ 100% on overdue loan;
Basic loan provision has been made @ 1% on regular loan.
b) Flexible loans
Provision has been made on flexible loans at the following rates:
Principal outstanding from the signing of first contract period below 2 years 50%;
Principal outstanding for 2 years and beyond from the signing of first contract period 100%;
Overdue flexible loans 100%.
c) Housing loans (Members)
Housing loan provision has been made @ 100% on overdue loan;
Housing loan provision has been made @ 1% on regular loan.
d) Educational loan
No provision has been made on education loan.
3.13 Overdue Policies
If a borrower misses ten consecutive installments, the entire outstanding loan is treated as an
overdue loan;
Incase of one year, if a borrower fails to pay half of the loan amount, with interest, within 26
weeks, entire un-repaid amount is due;
Incase of loans with longer duration, if the borrower fails to repay the total principle amount
and interest scheduled to be repaid within each segment of 26 weeks, entire unrepaid amount
is overdue.
3.14 Provision for interest receivable
a) Interest receivable on basic loans:
Interest receivable on basic loan provision has been made @ 100% on overdue interest of
basic loans;
Interest receivable on basic loan provision has been made @ 1% on regular interest of basic
loans.
b) Interest receivable on flexible loans:
Provision has been made on interest receivable on flexible loans at the following rates:
Interest receivable outstanding from the signing of first contract period below 2 years 50%;
15
Ahmad & Ahmad
Chartered Accountants
Interest receivable outstanding for 2 years and beyond from the signing of first contract period
100%;
Interest receivable outstanding of overdue loan 100%.
c) Interest receivable on Housing loans (Members)
Provision has been made on interest receivable on housing loans (Members) at the following
rates:
Interest receivable on housing loan provision has been made @ 100% on overdue interest
receivable;
Interest receivable on housing loan provision has been made @ 1% on regular interest
receivable.
3.15 Bad debt recovery
Fifty percent of Bad debt recovery has been shown in provision and reserve account and the
remaining fifty percent has been shown in other income.
3.16 Fixed assets
The major categories of property and equipment held by the bank are property land, buildings
& other structures, equipment, furniture and fixtures, vehicles, capital work in progress etc.
As guided in paragraph 28 of BAS 16 Property Plant and Equipment: all property and
equipment except land are stated at historical cost less accumulated depreciation. No
depreciation has been charged on land and the carrying amounts are the same as those were
initially recognized. The opening and closing carrying amounts of all property and equipment
are presented including the amount of additions, disposals and depreciation charged during
the year as required by paragraph 60 (e) of BAS 16.
3.17 Depreciation
As required of IAS 16, property, plant & equipment depreciation has been charged on property
and equipment at the following rates using straight-line method.
Property & Equipment
Depreciation Rate
Building and other structures
1.7%
Office House (Semi- Pucca and Tin shed)
7.5%
Development of leasehold property
10%
Vehicles
20%
16
Ahmad & Ahmad
Chartered Accountants
Property & Equipment
Depreciation Rate
Office equipment
15%
Electrical equipment
10%
Furniture & fixtures
10%
Library books
10%
Depreciation at the applicable rates is charged proportionately on additions made during the
year from the date of their acquisition on straight-line method. Disposal of assets during the
year, depreciation charged is required on actual date.
3.18 Investments
Value of investment is presented below:
Nature of Investments
Applicable Accounting
Face Value
At cost
At cost
FDR
Shares in CDBL
Grameen Mutual Fund
3.19 Revenue recognition
Revenue is recognized on an accrual basis which complies with the conditions of revenue
recognition as provided in BAS 18 Revenue.
a)
Income on investments is accounted for consistently on an accrual basis.
b) Interest on loans and advances (including bad and doubtful loans and advances) is
accounted for on an accrual basis.
c) Service charge on guarantees issued by the bank in favour of other institutions is
accounted for on cash receipt basis.
3.20 Interest paid and other expenses
In terms of the provision of the IAS 1 Presentation of Financial Statements, the interest paid
and other expenses are recognized on accrual basis.
3.21 Retirement benefits to the employees
a) Grameen Bank Superannuation fund:
The bank operates a superannuation fund scheme, provision in respect of which is made
annually @ 60% of annual basis salary. It is operated by a separate Board of Trustees
consisting ten members.
17
Ahmad & Ahmad
Chartered Accountants
b) Non-contributory provident fund
Provident fund benefits are given to the employees of the bank in accordance with noncontributory provident fund rules. The fund is operated by a Board of Trustees. All confirmed
employees of the bank are contributing 10% of their basic salary as subscription of the fund.
Interest earned from the investments is credited to the members account on accrual basis.
3.22 Comparative Information
As required by paragraphs 38 and 40 of IAS 1 Presentation of Financial Statements
comparative information in respect of the previous year have been presented in all numerical
information in the financial statements and the narrative and descriptive information where it is
relevant for understanding of the current year's financial statements.
3.23 Dividend Payments
Dividend payable to the Bank’s shareholders are recognized as liability and deducted from the
shareholders’ equity in the period in which the shareholder’s right to receive payment is
established. Final dividend is recognized when it is approved by the Board of Directors.
The proposed dividend for the year 2007 has not been recognized as in the balance sheet
date in accordance with BAS-10 Events after the Balance Sheet Date.
3.24 Reporting period
These financial statements cover one calendar year from 1 January 2007 to 31 December
2007.
3.25 Events after Balance sheet date
Grameen Bank has decided to recommend payment of 20% (twenty percent) cash dividend
for the year 2007. The Total amount of dividend is Tk. 63,600,000.
3.26 General
i)
Previous year’s figures have been rearranged, wherever considered necessary, for the
purpose of comparison.
ii) Figures appearing in these accounts have been rounded off to the nearest Taka.
18
Ahmad & Ahmad
Chartered Accountants
2007
Taka
4.00
BALANCES WITH OTHER BANKS AND FINANCIAL INSTITUTIONS
On short term deposit accounts
On current deposit accounts
5.00
870,976,622
55,027,637
926,004,259
856,102,107
42,460,444
898,562,551
24,455,309,686
6,500,000
4,000,000
24,465,809,686
19,723,515,990
16,500,000
4,000,000
19,744,015,990
2,378,762,278
2,659,997,149
220,000,000
157,124,603
1,226,616,352
1,602,056,276
1,172,433,854
2,627,430,248
1,485,903,010
615,223,656
751,771,729
993,528,458
1,201,586,501
1,003,500,000
850,890,634
1,319,280,827
694,289,274
326,000,000
1,110,182,337
1,178,732,500
150,000,000
730,000,000
24,455,309,686
2,012,885,821
2,528,222,363
462,451,087
389,675,631
954,013,517
1,117,356,850
947,317,595
1,771,133,533
1,016,947,853
391,516,382
1,171,979,403
702,712,295
955,007,858
900,000,000
859,336,156
900,650,000
465,200,685
600,000,000
450,000,000
320,000,000
300,000,000
507,108,961
19,723,515,990
INVESTMENTS AT COST
Fixed deposits with other banks (Note 5.01)
Grameen Mutual Fund-One (Note 5.02)
Share (Note 5.03)
5.01
2006
Taka
FIXED DIPOSITS WITH OTHER BANKS
Southeast Bank Limited
Prime Bank Limited
Dutch Bangla Bank Limited
State Bank of India
NCC Bank Limited
Mercantile Bank Limited
One Bank Limited
Dhaka Bank Limited
EXIM Bank Limited
First Security Bank Limited
Mutual Trust Bank Limited
Standard Bank Limited
Premier Bank Limited
Bank Asia Limited
Jamuna Bank Limited
United Commercial Bank Limited
Shahjalal Islami Bank Limited
The City Bank Limited
BRAC Bank Limited
Arab Bangladesh Bank Limited
Al-Arafa Islami Bank Limited
Eastern Bank Limited
Trust Bank Limited
5.02
Net investment of Grameen Bank as sole sponsor of Grameen Mutual Fund (GMF)-One (scheme 1) stands at
Tk. 65.00 lacs after selling Tk. 1.00 crore during the year 2007. The fund was listed in Dhaka and Chittagong
Stock Exchange as on 04 September 2005.
5.03
Four shares of Central Depository Bangladesh Limited (CDBL) which were subscribed @ Tk. 1,000,000 each.
5.04
Maturity grouping of investments
On demand
Up to 1 month
Over 1 month but not more than 3 months
Over 3 months but not more than 1 year
Over 1 year but not more than 5 years
Over 5 years
3,032,564,001
3,634,946,368
17,637,799,317
156,500,000
4,000,000
24,465,809,686
19
3,567,219,089
2,904,267,719
13,252,029,182
16,500,000
4,000,000
19,744,015,990
Ahmad & Ahmad
Chartered Accountants
2007
Taka
6.00
LOANS AND ADVANCES - WITHOUT COLLATERAL
Loans
Basic loans
Flexible loans
Housing loans (Members)
Education loans
Social Venture Capital Fund (SVCF) loans
Center house building loan
Loan freeze
Other loans
Interest free loans
Advances
Housing loans (Staff)
Household commodities loans
Salary advances
Bicycle advances
Motor cycle advances
Calculator advances
P.F. advances
Medical loans
Staff welfare loans
6.01
32,787,687,069
2,379,885,643
202,124,449
609,104,995
29,671,193
109,228,774
29,391,468
24,323,738
165,856,184
36,337,273,513
30,669,086,634
1,739,412,453
295,448,324
373,865,218
32,550,572
75,832,343
48,230,034
24,710,835
33,259,136,413
161,428,219
448,431,058
39,263
15,558,263
10,761,502
1,009,963
564,425,016
6 143 284
6,143,284
1,409,625
1,209,206,193
37,546,479,706
100,677,861
242,249,693
47,773
15,148,073
10,664,564
1,186,692
508,363,023
6 022 744
6,022,744
1,400,286
885,760,709
34,144,897,122
2,331,636,391
4,682,036,020
21,146,177,371
9,011,155,127
375,474,797
37,546,479,706
2,120,398,112
4,257,868,671
19,230,406,059
8,194,775,309
341,448,971
34,144,897,122
54,908,722
789,609,907
69,534,735
52,657,571
17,838,644
110,925,860
19,042,046
1,114,517,485
42,535,677
774,181,203
56,599,391
55,289,620
16,689,331
83,162,659
16,818,954
1,045,276,835
Maturity grouping of loans and advances
Repayable on demand
Up to 1 month
Over 1 month but not more than 3 months
Over 3 months but not more than 1 year
Over 1 year but not more than 5 years
Over 5 years
7.00
2006
Taka
FIXED ASSETS INCLUDING PREMISES, FURNITURE AND FIXTURES
(NET OF ACCUMULATED DEPRECIATION) (Annexure-A)
Land
Building and other structures
Vehicles
Office equipment
Electrical equipment
Furniture and fixtures
Capital work in progress
20
Ahmad & Ahmad
Chartered Accountants
2007
Taka
8.00
OTHER ASSETS
Interest receivable (Note 8.01)
Advance income tax for employees
Printing stationery on hand
Office stationery on hand
Zone/Area control account
Advance income tax (Note 8.02)
Security deposits
Prepaid expenses
Advance against TA/DA
Advance against purchases
Advance against house rent
Stock & stores (General)
Suspense account
Advances to contractors
Inter-branch adjustments (Note 8.03)
Advance for disaster
Workshop
Rent receivables
Service charge receivables
8.01
4,333,745,880
3,033,272
19,902,093
342,963
231,126
201,595,011
594,774
8,188,725
90,677
1,551,825
3,149,935
3,590,340
222,930,305
2,100,825
34,987,344
2,852,499
148,846
8,203,066
43,254,594
4,890,494,100
3,118,918,883
24,450,785
353,730
264,094
201,533,746
590,974
6,573,790
254,404
440,153
4,549,659
1,364,971
134,936,529
2,460,791
43,590,184
176,387
8,913,019
3,549,372,099
1,176,599,582
698,498,752
1,656,778,778
1,199,869,789
102,675,184
3,670,769
19,456,935
980,924
21,847,193
3,005,279,572
1,248,834,650
880,123,129
138,494,240
2,360,886
19,422,402
1,531,389
2,290,766,696
46,932,818
58,437,474
1,343,614
45,152,820
151,866,726
4,333,745,880
42,539,040
48,466,042
2,604,180
36,044,173
129,653,435
3,118,918,883
Interest receivable
From investments
Fixed deposits with other banks
From Lending
Basic loans
Flexible loans
Housing loans (Members)
Education loans
Other loans
Interest freeze
Interest before loan freeze
From Staff
Staff loan and advances
P.F. advances
Medical loans
Household commodities loans
8.02
2006
Taka
Advance income tax
Advance income tax represents tax deducted at source by Scheduled Banks and others from the income of
Grameen Bank. Grameen Bank is a non- taxable entity as per Grameen Bank Ordinance 1983 but due to late
receipts of the exemption orders from Government, Grameen Bank had faced such deduction. The tax deducted
as such, at source remains to be refundable.
8.03
Inter-branch adjustments
Inter-Branch adjustment account balance Tk.34,987,344 represents outstanding in branch and Head Office
transactions (Net) originated but not responded at the balance sheet date. However, unadjusted items are being
subsequently adjusted.
21
Ahmad & Ahmad
Chartered Accountants
2007
Taka
8.04
Maturity grouping of other assets
On demand
Up to 1 month
Over 1 month but not more than 3 months
Over 3 months but not more than 1 year
Over 1 year but not more than 5 years
Over 5 years
9.00
86,731,451
604,562,319
1,303,870,520
2,158,121,458
737,208,352
4,890,494,100
435,507,956
63,178,823
941,648,418
1,572,016,904
537,019,998
3,549,372,099
256,463,897
267,918,176
238,848,625
18,075,066
44,283,298
967,687,403
1,793,276,465
264,736,926
267,918,176
238,848,625
18,075,066
44,283,298
1,021,472,306
1,855,334,397
BORROWINGS FROM BANKS AND OTHER INSTITUTIONS
2% IFAD 239 BA (Note 9.01)
NORAD (Note 9.02)
SIDA (Note 9.03)
Ford Foundation
Dutch Grant Loan (Note 9.04)
Japan Bank of International Co-operation (OECF) (Note 9.05)
9.01
2006
Taka
2% IFAD 239 BA
A subsidiary loan agreement for an amount in taka equivalent of SDR 6,200,000 was made with Government of
the People's Republic of Bangladesh on 8 January 1990. The loan received in 1990 and 1992 is repayable on 15
March and 15 September each year in 80 equal semi annual installments commencing on 15 March 1999 and
ending on 15 September 2039.
9.02
Norwegian Agency for International Development (NORAD)
A subsidiary loan agreement for an amount in taka equivalent of Netherlands' Kroner 5,500,000 was made with
Government of the People's Republic of Bangladesh on 4 August 1986. The loan received in 1986 is payable
with interest rate 2% per annum in March and September each year in 40 equal semi annual installments during
a period of 30 years including a grace period of 10 years commencing in March 1997.
9.03
Swedish International Development Authority (SIDA)
A subsidiary loan agreement for an amount in taka equivalent of SEK 60,000,000 was made with Government of
the People's Republic of Bangladesh on 30 November 1986. The loan received in 1986 is repayable with interest
rate 2% per annum in March and September each year in 40 equal semi annual installments during a period of
30 years including a grace period of 10 years commencing in March 1997.
9.04
Dutch Grant Loan
The loan of DFL 2,000,000 equivalent of Tk. 44,283,298 received in 1986 under a subsidiary loan agreement
with Bangladesh Bank is repayable on 15 December each year in 15 equal annual installments within 16 years
from the date of receiving the loan including a grace period of one year. As per section 11 of the loan agreement
the amount of installments of the principal loans amount repaid by Grameen Bank is allowed to be used in
perpetuity for financing its housing loan scheme on the same terms and condition as stated above.
22
Ahmad & Ahmad
Chartered Accountants
2007
Taka
9.05
2006
Taka
JBIC (OECF)
A subsidiary loan agreement for an amount of taka equivalent of Yen 2,986,000,000 was executed with the
Government of the Peoples Republic of Bangladesh on 7 March 1996. The loan is repayable on 15 March and
15 September each year with the interest rate of 2% per annum in semi annual installments in 30 years including
a grace period of 10 years in accordance with amortization schedule, first installments being due on 15
September 2005. Tk. 393,133,462, Tk. 419,216,041 and Tk. 289,800,159 were received in 1996, 1997 and 1998
respectively.
9.06
Maturity grouping of borrowings from banks and other institutions
Repayable on demand
Up to 1 month
Over 1 month but not more than 3 months
Over 3 months but not more than 1 year
Over 1 year but not more than 5 years
Over 5 years
31,028,966
62,057,932
310,289,660
1,389,899,907
1,793,276,465
43,698,136
43,698,136
174,792,544
1,593,145,581
1,855,334,397
22,452,125
37 332 130
37,332,130
5,580,357,096
17,345,263,354
1,418,308,573
76,851,285
558,674,054
538,900,821
115,681,275
3,778,582,377
6,294,589
125,865,300
29,604,562,979
28,854,899
56 381 592
56,381,592
4,317,771,415
13,324,222,125
2,730,531,260
1,156,269,316
59,640,103
1,163,989,458
510,710,155
119,491,475
3,767,136,966
18,243,960
68,688,100
27,321,930,824
29,078,004
107,255
624,184,820
9,367,626,822
418,816,533
9,815,274,697
2,166,127,399
125,847
6,104,985
205,303
45,691,786
22,473,343,451
22,417,579
127,855
677,092,055
7,299,763,837
318,404,724
6,926,525,203
1,734,874,266
2,878,045
4,054,873
723,622
33,509,618
17,020,371,677
10.00 DEPOSITS AND OTHER FUNDS
Members deposit
Current deposits
Fixed deposit (Note 10
10.01)
01)
Savings deposit
Grameen pension scheme-10 years (Note 10.02)
Special Savings account
Double in 7 years deposit (Note 10.03)
Monthly profit scheme
Polly phone deposit
Centre welfare fund
Central emergency fund
Loan insurance savings fund
Grameen pension scheme-5 years
Share money deposit
Non-Members deposit
Current deposit
Short term deposit
Fixed deposit
Savings deposit
Grameen pension scheme-10 years (for staff)
Double in 7 years deposit
Monthly profit scheme
Technology project deposit
Forestation fund
Grameen pension scheme-5 years (for staff)
Employees loan insurance savings fund
23
Ahmad & Ahmad
Chartered Accountants
2007
Taka
Other Funds
Employees welfare fund
Struggling members welfare fund
Grameen Award funds
Maintenance reserve
Cafeteria
Leasing insurance fund
Contingency fund (Note 10.04)
Byabosa Bikash risk coverage fund
Loan repaid by Byabosa Bikash
Employees loan insurance fund
Loan insurance fund
Animal insurance fund
Grameen Bank Disaster Relief Fund
Members welfare fund
Polly phone risk coverage fund
Revolving fund-special programme
Revolving fund-SIDE
Revolving fund (Note 10.05)
Rehabilitation fund (Note 10.06)
10.01
82,366,212
39,680,718
88,593,135
51,728,667
1,950,134
5,612,440
204,944,861
249,342,955
20,960,112
9,855,999
579,042,576
29,030,207
2,205,884
5,922,989
46,304,764
8,158,810
17,791,599
29,884,496
2,089,472,215
3,562,848,773
55,640,755,203
2006
Taka
73,124,025
40,708,073
82,302,929
48,316,739
1,856,053
5,612,440
172,491,591
291,733,867
5,279,181
5,778,497
302,597,393
24,645,999
2,205,884
5,941,220
46,304,764
8,216,940
17,726,540
29,884,496
2,143,673,316
3,308,399,947
47,650,702,448
Fixed Deposit
Grameen Bank started "fixed deposit scheme" vide its circular no. 02/2000 dated 16 May 2000 which is for
minimum of 1 year and maximum of 3 years. Interest rates of fixed deposits are 8.75%, 9.25% and 9.50% for 1
year, 2 years and 3 years respectively. Depositors can get interest after matured date of fixed deposit.
10.02 Grameen pension scheme
Grameen Bank Started " Grameen pension scheme" of 5 years and 10 years vide its circular no. 2-06/2000
dated 30 August 2000 for the financial assurance of their members and employees. Under this scheme Grameen
Bank motivates their members and employees to small savings by opening "GPS Account" in the respective
branches which rate of interest is 10% for 5 years and 12% for 10 years. Both are payable yearly basis.
10.03 Double in 7 years deposit
Grameen Bank started "Double in 7 years deposit" scheme vide its circular no. 2-07/2000 dated 30 August 2000
for making financial strengths of rural civil society by increasing saving mentality. Any person can open his/her
account by depositing minimum of Tk. 1,000.00 (One thousand) or its general multiplying amount for 7 years.
After 7 years account holder for carrying his/her account fulfilling the all criteria will get double amount
(consolidated principal and interest) of his/her investment.
10.04 Contingency fund
Grameen Bank has created " Contingency Fund" to cover the loss (if any) arises from forgery, theft, lost, assault,
robbery etc.
24
Ahmad & Ahmad
Chartered Accountants
2007
Taka
2006
Taka
14,621,090
6,729,042
3,708,745
4,825,619
29,884,496
14,621,090
6,729,042
3,708,745
4,825,619
29,884,496
2,143,673,316
(131,457,470)
77,256,369
2,089,472,215
2,135,542,431
(6,276,312)
14,407,197
2,143,673,316
2,369,512,704
8,282,384,285
23,345,182,581
14,842,397,169
6,801,278,464
55 640 755 203
55,640,755,203
1,987,034,292
7,099,954,665
20,008,529,958
12,722,737,553
5,832,445,980
47 650 702 448
47,650,702,448
10,284,228
5,697,403
144,682,033
657,111
89,195
5,596,676
214,997,573
2,035,863
1,840,184
52,836,918
239,296
268,405
185,590
61,928,395
483,016,578
2,719,781
1,491,625
133,840
4,853
130,305
4,664,948,359
5,653,784,211
10,631,112
3,606,314
533,935,636
98,236
56,000
5,034,935
153,018,974
191,160
1,779,751
1,792,120
17,899,944
169,003
268,952
155,894
35,111,910
174,376,668
2,619,781
2,825,655,615
3,766,402,005
10.05 Revolving fund
Revolving fund from G.T.Z
Revolving fund from K.F.W
Revolving fund for SVCF
Revolving fund for housing rehabilitation
10.06 Rehabilitation fund
Opening Balance
Payment during the year
Reimbursement during the year
10.07 Maturity grouping of deposits and other funds
Repayable on demand
Up to 1 month
Over 1 month but not more than 3 months
Over 3 months but not more than 1 year
Over 1 year but not more than 5 years
Over 5 years
11.00 OTHER LIABILITIES
Interest payable on borrowings
Interest sundry
Bills payable
P.F. trustee board-current account
Contributory provident fund
Accounts for other institutions (Note 11.01)
G.B. superannuation fund-current account
SIDE programme-sundry deposit
Retention money
Earnest money
Claimable deposits
Unpaid salary
Tax deducted at source
Sundry receipts
Farewell grant provision for fixed salary staff
Miscellaneous
Advance house rent
Struggling members programme
Risk fund-Grameen Byabosa Bikash
Risk fund and Part of Grameen Byabosa Bikash
Provision reserve for doubtful rents
Provision reserves (Note 11.02)
25
Ahmad & Ahmad
Chartered Accountants
2007
Taka
2006
Taka
11.01 Accounts for other institutions
Grameen Telecom
Grameen Fisheries & Livestock Foundation
Grameen Communications
Grameen Shikkha
Grameen Kalyan
Grameen Krishi Foundation
Grameen Samogree
1,000
3,976,625
15,616
808,094
790,341
4,000
1,000
5,596,676
999
3,682,185
16,349
524,061
790,341
20,000
1,000
5,034,935
3,640,568,497
1,024,379,862
4,664,948,359
1,992,715,688
832,939,927
2,825,655,615
2,579,708,195
1,060,860,302
3,640,568,497
1,396,196,231
596,519,457
1,992,715,688
2,487,672,447
54,031,029
38,004,719
2,579,708,195
1,325,597,160
70,599,071
1,396,196,231
1,017,314,252
43,546,050
1,060,860,302
545,935,457
50,584,000
596,519,457
331,891,966
164,408,181
528,079,715
1,024,379,862
343,837,781
169,594,382
319,507,764
832,939,927
732,644,748
74,350,000
1,528,072,682
3,318,716,781
5,653,784,211
485,112,578
1,014,292,060
2,266,997,367
3,766,402,005
11.02 Provision reserves
Total specific provision against loans & advances and Interest receivable (11.02.01)
Total general provision against loans & advances and Interest receivable (11.02.02)
11.02.01 Total specific provision against loans & advances and Interest receivable
Specific provision against loans & advances (a)
Specific provision against Interest receivable (b)
a))
b)
Specific
p
p
provision against
g
loans & advances
Basic and Flexible loans
Housing loans
For freeze loan (Patuakhali & Pirojpur)
Specific provision against Interest receivable
Basic and Flexible loans
Housing loans
11.02.02 Total general provision against loans & advances and Interest receivable
Regular basic loans
Regular housing loans
Reserve for bad debt recovery
11.03 Maturity grouping of other liabilities
Repayable on demand
Up to 1 month
Over 1 month but not more than 3 months
Over 3 months but not more than 1 year
Over 1 year but not more than 5 years
Over 5 years
26
Ahmad & Ahmad
Chartered Accountants
2007
Taka
2006
Taka
12.00 SHARE CAPITAL
12.01 Authorized
5,000,000 Ordinary Shares of Tk. 100 each
500,000,000
500,000,000
318,000,000
318,000,000
12.02 Paid up Capital
3,180,000 ordinary shares of Tk. 100 each issued for cash
Shareholders for year ended December 2007
%
Government of Bangladesh
Sonali Bank
Bangladesh Krishi Bank
No. of
Shares
Nominal Value of shares
3.78%
0.94%
0.94%
120,000
30,000
30,000
12,000,000
3,000,000
3,000,000
18,000,000
12,000,000
3,000,000
3,000,000
18,000,000
4.28%
90.06%
100%
136,163
2,863,837
3,180,000
13,616,300
286,383,700
318,000,000
13,616,300
286,383,700
318,000,000
318,000,000
5,453,782,878
94,100,000
5,865,882,878
318,000,000
5,668,182,878
125,000,000
6,111,182,878
Tire-II (Supplementary capital)
General Provision
1,024,379,862
832,939,927
Total Capital (A)
6,890,262,740
6,944,122,805
68,953,698,757
55,423,307,297
5,542,330,730
5,865,882,878
1,024,379,862
6,890,262,740
1,347,932,010
59,383,621,728
48,292,420,027
4,346,317,802
6,111,182,878
832,939,927
6,944,122,805
2,597,805,003
12.43%
14.38%
4,280,409,577
328,000,000
63,600,000
666,000,000
115,773,301
5,453,782,878
4,280,409,577
318,000,000
318,000,000
636,000,000
115,773,301
5,668,182,878
Borrowers :
Men
Women
Total
12.03 Capital
p
Adequacy
q
y Ratio
Tire-I (Core Capital)
Paid up Capital
Capital & other reserves
Retained surplus
Total Assets
Total Risk Weighted Assets (B)
Required Capital based on Risk Weighted Assets (10% of RWA) - (C)
Core Capital (Tire-I)
Supplementary Capital (Tire-II)
Total
Surplus/(Shortage)-(A-C)
Capital to risk-weighted assets (A/B)
13.00 CAPITAL AND OTHER RESERVES
Capital reserves (Note 13.01)
General reserve
Proposed dividend
Dividend equalization fund
Other reserves (Note 13.02)
27
Ahmad & Ahmad
Chartered Accountants
2007
Taka
2006
Taka
13.01 Capital reserves
Revolving fund (Note 13.01.01)
Grants
MED Revolving fund
3,732,311,704
527,997,873
20,100,000
4,280,409,577
3,732,311,704
527,997,873
20,100,000
4,280,409,577
Capital reserve includes outstanding balances of revolving funds and grant as at 31 December 1999 which are
no longer refundable.
13.01.01 Revolving fund
Revolving fund for G & C
Revolving fund for house loan
Revolving fund for staff house loan
1,544,811,573
2,065,346,276
122,153,855
3,732,311,704
1,544,811,573
2,065,346,276
122,153,855
3,732,311,704
992,043
3,017,748
10,387,868
2 807 045
2,807,045
49,697,943
19,020,037
3,238,095
26,612,522
115,773,301
992,043
3,017,748
10,387,868
2 807 045
2,807,045
49,697,943
19,020,037
3,238,095
26,612,522
115,773,301
13.02 Other reserves
Special reserve
Training reserve fund
Training revolving fund
P blication ffund
Publication
nd
Assets replacement reserve
SIDE programme-sundry deposit
SIDE fund revolving account
Special programme-GTZ
14.00 RETAINED SURPLUS
Balance on 1 January
Tax paid on behalf of shareholders
Retained balance for 2006
125,000,000
(30,900,000)
94,100,000
Net profit
Dividend equalization fund
Proposed dividend
General reserve
Employee welfare fund
Balance at 31 December
106,914,130
(30,000,000)
(63,600,000)
(10,000,000)
(3,314,130)
94,100,000
1,398,155,030
(636,000,000)
(318,000,000)
(318,000,000)
(1,155,030)
125,000,000
Tax deductible at source on dividend paid to shareholders were paid, in line with the decision of the board, to
keep the full dividend at the hand of the recipient.
28
Ahmad & Ahmad
Chartered Accountants
15.00 CONTINGENT LIABILITIES - GUARANTEE
There are contingent liabilities for bank guarantees executed by Grameen Bank in favour of the following :
Guarantee
amount
2007
Loan outstanding
including interest
at 31-12-07 against
which guarantees
are given
Guarantee
amount
Taka
Grameen Fisheries & Livestock
Foundation
Grameen Shakti
Tk. 2,000,000.00
US$
2,000,000
53,899.34
Taka
Tk. 6,000,000.00
3,719,054 US$ 109,302.65
5,719,054
29
2006
Loan outstanding
including interest
at 31-12-06 against
which guarantees
are given
6,000,000
7,541,883
13,541,883
Ahmad & Ahmad
Chartered Accountants
16.00
16.01
2007
2006
Taka
Taka
INTEREST INCOME
Loans and advances (Note 16.01)
6,771,022,849
6,271,659,145
Deposits
19,913,362
6,790,936,211
63,907,179
6,335,566,324
6,209,736,526
408,314,679
25,550,172
8,624,845
46,254
6,652,272,476
5,845,680,416
313,309,462
40,646,580
1,267,519
9,144
6,200,913,121
11,953,688
11,070,256
Interest on loans and advances
Members loan
Basic loans
Flexible loans
Housing loans
Education loans
Other loans
Employees Advances
Staff loans & advances
P.F. advances
54,024,877
47,433,614
Household commodities loans
48,730,581
12,023,699
4,041,227
118,750,373
6 771 022 849
6,771,022,849
218,455
70,746,024
6 271 659 145
6,271,659,145
Interest on deposits (Note 17.01)
4,470,000,428
3,433,459,392
Interest on borrowings (Note 17.02)
36,165,228
4,506,165,656
37,649,535
3,471,108,927
2,739,997,491
1,698,315,283
31,687,654
4,470,000,428
2,240,159,196
1,168,608,748
24,691,448
3,433,459,392
5,472,019
435,587,959
13,287,800
41,572,751
64,328,002
1,529,719,653
51,326,872
117,144,565
14,660,779
437,632,438
28,290,739
973,914
2,739,997,491
6,289,853
289,385,130
13,580,288
39,597,792
89,911,228
1,118,877,754
211,514,059
102,529,177
16,441,361
348,882,544
3,150,010
2,240,159,196
Medical loans
17.00
17.01
INTEREST/PROFIT PAID ON DEPOSITS AND BORROWINGS ETC.
Interest on deposits
Members deposit (Note 17.01.01)
Non-Members deposit (Note 17.01.02)
Others (Note 17.01.03)
17.01.01 Members deposit
Fixed deposit
Savings deposit
Central emergency fund
Centre welfare fund
Polly phone deposit
Grameen pension scheme-10 years
Special savings account
Double in 7 years deposit
Monthly profit deposit scheme
Loan insurance savings fund
Loan insurance fund
Grameen pension scheme-5 years
30
Ahmad & Ahmad
Chartered Accountants
2007
2006
Taka
Taka
17.01.02 Non-Members deposit
Fixed deposit
Savings deposit
Technology project deposit
Grameen pension scheme-10 years (for staff)
Double in 7 years deposit
Monthly profit deposit scheme
Grameen pension scheme-5 years (for staff)
Employees loan insurance savings fund
Forestation and other fund
60,821,191
602,838,097
120,206
39,906,680
803,889,406
184,865,527
520,008
4,862,743
491,425
1,698,315,283
58,909,629
434,386,810
184,175
30,044,199
501,242,782
139,373,970
126,563
3,647,590
693,030
1,168,608,748
14,663,210
3,188,381
6,197,977
176,095
6,980,858
326,611
146,126
8,396
31,687,654
12,232,750
3,518,980
5,627,336
176,759
2,702,694
247,572
135,690
49,667
24,691,448
5,204,075
5,357,630
4,776,318
19,840,022
966,820
20,363
36,165,228
5,369,535
5,358,363
4,776,973
20,915,720
786,111
442,833
37,649,535
34,723,312
216,214,250
36,601,332
394,481,874
907,456
77,781
4,665,236
398,770
190,106,611
878,176,622
38,348,301
321,872,382
38,164,187
864,036,857
537,425
128,092
13,455,643
260,300
124,756,332
1,401,559,519
2,650,985
150,721,079
3,361,493
33,373,054
190,106,611
35,041
83,995,380
80,273
40,645,638
124,756,332
17.01.03 Others
Contingency fund
Struggling member welfare fund
Employees' welfare fund
P.F. Trustee Board-current account
Grameen award funds
Accounts of other organizations
Cafeteria
Contributory Provident Fund
17.02
Interest on borrowings
2% IFAD 239 BA
NORAD
SIDA
JBIC (OECF)
Interest on short term loans
Dutch grant loan
18.00
OTHER INCOME
Service charges
Bad debts recovery
Rent receipts
Polly phone service charge receipts
Sale proceeds of old newspapers
Income from Health Program
Rebate from Byabosa Bikash
Sale proceeds of tender forms
Miscellaneous receipts (Note 18.01)
18.01
Miscellaneous receipts
Income from properties,
Profit on sale of plant and equipment
Income from accounts closing
Income from ROSA Programme
Others
31
Ahmad & Ahmad
Chartered Accountants
19.00
1,129,231,686
15,311,395
62,514
358
422,955,317
92,105,964
59,682,441
349,248
26,850
3,019,610
157,667
2,540,113
176,816,722
569,763,114
2,472,022,999
956,804,772
20,895,344
20,220
(22,359)
289,398,844
65,648,754
49,640,871
353,248
28,000
1,967,485
162,403
151,121,209
488,509,802
2,024,528,593
60,509,895
1 442 815
1,442,815
21,467,132
83,419,842
46,949,714
948 672
948,672
20,671,481
68,569,867
543,412
95,573,823
96,117,235
867,180
73,977,134
74,844,314
1,065,900
150,480
1,216,380
792,110
12,540
804,650
67,824,438
6,984,230
11,518,977
22,766,780
109,094,425
2,141,745
111,236,170
63,223,082
6,337,365
9,402,677
18,091,870
97,054,994
1,055,386
98,110,380
AUDITORS' FEES
Statutory audit
Special audit
23.00
Taka
LEGAL AND PROFESSIONAL EXPENSES
Legal expenses
Other professional expenses
22.00
Taka
RENT, RATES, TAXES, VEHICLE INSURANCE, UTILITIES ETC.
Rent, rates & taxes
Insurance (Vehicle)
Water, electricity & gas
21.00
2006
SALARIES AND OTHER RELATED EXPENSES
Salaries
Compensation for surrendering leave
Personal allowances
Dearness allowances
House rent allowances
Medical allowances
Conveyance allowances
Washing allowances
P.F. Subscription
Overtime
Watch and ward allowances
Hill Allowances
Bonus
Pension & Gratuity
20.00
2007
STATIONERY, PRINTING, ADVERTISEMENT ETC.
Printing & Stationery
Printing Stationery
Work Aid
Printing & photocopy
Office Stationery
Publication & Advertisement
32
Ahmad & Ahmad
Chartered Accountants
24.00
Taka
276,000
138,000
6,000
19,080
46,000
46,000
531,080
276,000
105,000
5,400
16,350
46,000
23,000
471,750
13,587,678
18,299,623
4,603,870
36,491,171
15,232,616
13,798,502
4,640,198
33,671,316
80,173,062
16,816,104
7,930,217
450,274
1 499 038
1,499,038
32,100,611
34,435
176,616,700
18,349,942
18,126,944
68,367,647
436,694
1,128,382
2,502,055
162,028,216
2,366,728
9,270,813
823,113
2,902,517
156,610,406
29,820,708
35,693,821
824,048,427
59,087,755
16,499,140
6,562,656
473,979
906 989
906,989
24,708,569
52,870
129,094,787
30,243,502
16,613,974
60,313,318
521,968
1,200,597
1,424,407
131,277,182
8,929,570
4,066,987
328,845
2,453,858
64,436,821
8,897,681
57,933,417
626,028,872
OTHER EXPENSES
Traveling & conveyance expenses
Postage, telegram and telephone
Entertainment
Liveries and uniform
Washing expenses
Welfare and recreation
Books and journals
Computer expenses
Bank charges
Expense for contingency fund
Training expenses
Special programme
Seminar & conference
Film and development
Lunch subsidy
Income tax
Group insurance
Holiday work allowance
Special subsidy
Felicitation allowance
Scholarship
Miscellaneous expenses
27.00
Taka
REPAIRS & MAINTENANCE OF FIXED ASSETS
Property & assets
Vehicles
Office & Electric Equipment
26.00
2006
MANAGING DIRECTOR'S SALARY AND ALLOWANCES
Basic salary
House rent allowances
Medical allowances
Domestic aid allowance & entertainment
Bonus
Felicitation Allowance
25.00
2007
PROVISIONS FOR LOANS AND ADVANCES
Total specific provision for loans & advances and interest receivable
Specific provision for loans and advances (Note 27.01)
Specific provision for interest receivable (Note 27.02)
Total general provision for loans & advances and interest receivable
General provision for regular basic loans
General provision for regular housing loans
33
2,349,698,239
1,576,001,833
773,696,406
1,499,181,910
982,850,979
516,330,931
(12,873,161)
(7,357,907)
(5,515,254)
2,336,825,078
83,526,097
81,555,455
1,970,642
1,582,708,007
Ahmad & Ahmad
Chartered Accountants
27.01
2006
Taka
Taka
Provision for loans and advances (for specific)
Basic and Flexible loans
Housing loans
27.02
2007
1,544,582,078
31,419,755
1,576,001,833
862,264,194
120,586,785
982,850,979
Basic and Flexible loans
738,613,442
409,454,356
Housing loans
35,082,964
773,696,406
106,876,575
516,330,931
Provision for interest receivable (for specific)
34
Ahmad & Ahmad
Chartered Accountants
2007
Taka
2006
Taka
Increase/
Taka
28.00 OTHER ASSETS
Advance income tax for employees
Printing stationery on hand
Office stationery on hand
Zone/Area control account
Advance income tax (Note 8.02)
Security deposits
Prepaid expenses
Advance against TA/DA
Advance against purchases
Advance against house rent
Stock & stores (General)
Suspense account
Advances to contractors
Inter-branch adjustments (Note 8.03)
Advance for disaster
Workshop
Rent receivables
Service charge receivables
3,033,272
19,902,093
342,963
231,126
201,595,011
594,774
8,188,725
90,677
1,551,825
3,149,935
3,590,340
222,930,305
2,100,825
34,987,344
2,852,499
148,846
8,203,066
43,254,594
556,748,220
24,450,785
353,730
264,094
201,533,746
590,974
6,573,790
254,404
440,153
4,549,659
1,364,971
134,936,529
2,460,791
43,590,184
176,387
8,913,019
430,453,216
3,033,272
(4,548,692)
(10,767)
(32,968)
61,265
3,800
1,614,935
(163,727)
1,111,672
(1,399,724)
2,225,369
87,993,776
(359,966)
(8,602,840)
2,852,499
(27,541)
(709,953)
43,254,594
126,295,004
10,284,228
5,697,403
144,682,033
657,111
89,195
5,596,676
214,997,573
2,035,863
1,840,184
52,836,918
239,296
268,405
185,590
61,928,395
483,016,578
2,719,781
1,491,625
133,840
4,853
130,305
4,664,948,359
5,653,784,211
10,631,112
3,606,314
533,935,636
98,236
56,000
5,034,935
153,018,974
191,160
1,779,751
1,792,120
17,899,944
169,003
268,952
155,894
35,111,910
174,376,668
2,619,781
2,825,655,615
3,766,402,005
(346,884)
2,091,089
(389,253,603)
558,875
33,195
561,741
61,978,599
(191,160)
256,112
48,064
34,936,974
70,293
(547)
29,696
26,816,485
308,639,910
100,000
1,491,625
133,840
4,853
130,305
1,839,292,744
1,887,382,206
29.00 OTHER LIABILITIES
Interest Payable on borrowings
Interest sundry
Bills payable
P.F. trustee board-current account
Contributory provident fund
Accounts for other institutions (Note 11.01)
G.B. superannuation fund-current account
SIDE programme-sundry deposit
Retention money
Earnest money
Claimable deposits
Unpaid salary
Tax deducted at source
Sundry receipts
Farewell grant provision for fixed salary staff
Miscellaneous
Advance house rent
Struggling members programme
Risk fund-Grameen Byabosa Bikash
Risk fund and Part of Grameen Byabosa Bikash
Provision reserve for doubtful rents
Provision reserves (Note 11.02)
(2,336,825,078)
(449,442,872)
30.00
CASH AND BANK BALANCES AT THE END OF THE PERIOD
Cash in hand
Balances with Bangladesh bank
Balances with other banks and financial institutions
2007
Taka
6,799,759
3,593,762
926,004,259
936,397,780
35
2006
Taka
1,215,684
281,447
898,562,551
900,059,682
Grameen Bank | Banking for the poor - Annexure-A
Page 1 of 1
Home | FAQs | Feedback | Sitemap | Spanish | Contact Us
search...
About Us
Methodology
Audit Report 2007
Auditors' Report
Balance Sheet
Profit and Loss Account
Cash Flow Statement
Change in Equity
Statement of Liquidity
Comparative Value
Added Statement
Notes to the Financial
Statement
Annexure-A
Data & Reports
Microcredit
Training
Founder
Annexure-A
ANNEXURE A STATEMENT OF FIXED ASSETS AS AT 31 DECEMBER 2007
COST
Additions
Transferred
Category of
Balance on 1
during the during the Assets
January 2007
year
year
Land
Building &
other
Structures
Development
of leasehold property
Vehicles
Office
equipment
Electric
equipment
Furniture &
fixtures
Library
books
Capital work
in progress
2007 Taka
2006 Taka
Taka
42,535,677 Taka
12,449,191 962,940,881
987,576
105,629,132 200,500,327
56,424,225
158,352,988
9,141
Taka
773,770 30,498,756
Disposals/
Rate
Balance at 31
adjustment
of
December during the
Dep.
2007
year
%
Taka
Taka
849,916 54,908,722 4,158,037
4,091,699
987,576
131,695,881 20% 4,384,373
39,654,546
-
324,967
1,579,460
1,973,842
329,259
1,688,090
- 208,973,784
60,804,305
197,898,903
9,141
15% 10% 10% 16,681,462
987,576
49,029,740 20,173,404
145,210,707
39,734,894
75,190,329
10% 16,818,954 - 25,596,066 23,372,974 19,042,046 1,544,198,900 126,788,439 44,412,961 47,573,967 1,667,826,333 1,400,776,744 152,159,991 78,696,303 87,434,137 1,544,198,900 Taka
188,759,679
29,795,000 11,539,935 15,268,186 440,726
Taka
1.7% 993,505,975
10% Balance on 1
Charge for
January the year
2007
10,006,573
9,141
11,658,849
3,301,481
12,581,690
- 498,922,065 64,396,885
445,471,452 51,704,234
GF USA
AUSTRALIA
Trademarks & Copyright © 1998 Grameen Communications. All rights reserved. | Last update June 21, 2009.
http://www.grameen-info.org/index.php?option=com_content&task=view&id=484&Itemi...
1/19/2010