Auditors Report 2018
Auditors Report 2018
Auditors Report 2018
Auditor’s Report
And
Financial Statements
as at and for the year ended 31 December 2018
Phulbari House
House 25 Road 1 Sector 9
Uttara Model Town, Dhaka-1230
www.ahkcbd.com
INDEPENDENT AUDITOR’S REPORT
TO THE SHAREHOLDERS OF JANATA BANK LIMITED
Opinion
We have audited the accompanying consolidated financial statements of Janata Bank
Limited and its subsidiaries (the “Group”) as well as the separate financial statements of
Janata Bank Limited (the “Bank”), which comprise the consolidated and separate balance
sheets as at 31 December 2018 and the consolidated and separate profit and loss
accounts, consolidated and separate statements of changes in equity and consolidated
and separate cash flow statements for the year then ended, and notes to the
consolidated and separate financial statements, including a summary of significant
accounting policies.
In our opinion, the accompanying consolidated financial statements of the Group and
separate financial statements of the Bank give a true and fair view of the consolidated
balance sheet of the Group and the separate balance sheet of the Bank as at 31
December 2018, and of its consolidated and separate profit and loss accounts and its
consolidated and separate cash flows for the year then ended in accordance with
International Financial Reporting Standards (IFRSs) as explained in note 2.00
Other Information
Management is responsible for the other information. The other information comprises all
of the information in the Annual Report other than the consolidated and separate
financial statements and our auditors’ report thereon. The Annual Report is expected to
be made available to us after the date of this auditor’s report.
Our opinion on the consolidated and separate financial statements does not cover the
other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the
other information identified above when it becomes available and, in doing so, consider
whether the other information is materially inconsistent with the financial statements or
our knowledge obtained in the audit or otherwise appears to be materially misstated.
Those charged with governance are responsible for overseeing the Group’s and the
Bank’s financial reporting process.
Identify and assess the risks of material misstatement of the consolidated and
separate financial statements, whether due to fraud or error, design and perform
audit procedures responsive to those risks, and obtain audit evidence that is
sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one
resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
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Obtain an understanding of internal control relevant to the audit in order to
design audit procedures that are appropriate in the circumstances.
Evaluate the overall presentation, structure and content of the consolidated and
separate financial statements, including the disclosures, and whether the
consolidated and separate financial statements represent the underlying
transactions and events in a manner that achieves fair presentation.
We also provide those charged with governance with a statement that we have
complied with relevant ethical requirements regarding independence, and to
communicate with them all relationships and other matters that may reasonably
be thought to bear on our independence, and where applicable, related
safeguards.
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Report on other Legal and Regulatory Requirements
In accordance with the Companies Act, 1994, the Securities and Exchange Rules 1987,
the Bank Company Act, 1991 and the rules and regulations issued by Bangladesh Bank,
we also report that:
(i) we have obtained all the information and explanations which to the best of our
knowledge and belief were necessary for the purpose of our audit and made due
verification thereof;
(ii) to the extent noted during the course of our audit work performed on the basis stated
under the Auditor’s Responsibility section in forming the above opinion on the
consolidated financial statements of the Group and the separate financial statements of
the Bank and considering the reports of the Management to Bangladesh Bank on anti-
fraud internal controls and instances of fraud and forgeries as stated under the
Management’s Responsibility for the financial statements and internal control:
(a) internal audit, internal control and risk management arrangements of the Group as
disclosed in the financial statements appeared to be materially adequate;
(b) nothing has come to our attention regarding material instances of forgery or
irregularity or administrative error and exception or anything detrimental committed by
employees of the Group and its related entities other than matters disclosed in these
financial statements;
(iii) financial statements of 3 (three) subsidiaries namely, Janata Exchange Company Srl
Italy, Janata Exchange Co. Inc. USA and Janata Capital and Investment Limited Dhaka
have been audited by Dott. Marco Bernabei, Rome; United Financial CPA P.C, New York
and Malek Siddiqui Wali, Chartered Accountants respectively on 31st December 2018.
These accounts have been properly reflected in the consolidated financial statements;
(iv) in our opinion, proper books of accounts as required by law have been kept by the
Group and the Bank so far as it appeared from our examination of those books and
proper returns adequate for the purpose of our audit have been received from the
branches not visited by us;
(v) the records and statements submitted by the branches have been properly
maintained and consolidated in the financial statements;
(vi) the consolidated balance sheet and consolidated profit and loss account together
with the annexed notes dealt with by the report are in agreement with the books of
account and returns;
(vii) the expenditures incurred were for the purpose of the Bank’s business for the year;
(viii) the consolidated financial statements of the Group and the separate financial
statements of the Bank have been drawn up in conformity with prevailing rules,
regulations and accounting standards as well as related guidance, circulars issued by
Bangladesh Bank and Bangladesh Bank letter ref: BRPD(P-1)/661/13/2019-3266 dated 25
April 2019;
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(ix) Provisions as explained in the note 7.14 and 13.06.02 have been made for loans and
advances which are, in our opinion, doubtful of recovery as per terms mentioned in the
Bangladesh Bank letter ref: BRPD(P-1)/661/13/2019-3266 dated 25 April 2019;
(x) the information and explanations required by us, as it appeared from our examination
on a test basis, have been received and reported accordingly;
(xi) Capital to Risk-weighted Asset Ratio (CRAR) as required by Bangladesh Bank has
been maintained as per terms mentioned in the Bangladesh Bank letter
ref: BRPD(P-1)/661/13/2019-3266 dated 25 April 2019; and
(xii) we have reviewed over 80% of the risk weighted assets of the Bank covering 60
branches as well as head office and spent over 17,155 person-hours for the audit of the
books and accounts of the bank.
____________________________
Dhaka, 29 April 2019 Dr. Jamshed S A Choudhury FCA
Senior Partner & International Liaison Partner
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Janata Bank Limited
Notes to the consolidated and separate financial statements
as at and for the year ended 31 December 2018
1.00 Corporate Information
1.01 Reporting Entity
Janata Bank Limited is a state owned commercial bank incorporated on 21 May 2007 under the Company
Act 1994 as a public limited company and governed by the Bank Company Act 1991(As amended in
2013). Janata Bank Limited took over the businesses, assets, liabilities, right, power, privilege and
obligation of erstwhile Janata Bank (emerged as a Nationalized Commercial Bank in 1972), pursuant to
Bangladesh Bank Nationalization order 1972 (P.O. No. 26 of 1972) on a going concern basis through a
vendor agreement signed between the Ministry of Finance, People's Republic of Bangladesh on behalf
of Janata Bank and the Board of Directors on behalf of Janata Bank Limited on 15 November 2007 with
a retrospective effect from 1 July 2007. The bank has 913 branches including four overseas branches and
3(three) 100% owned subsidiaries named as Janata Exchange Company Srl. Italy, Janata Exchange Co,
Inc. USA and Janata Capital and Investment Limited, Dhaka.
Bangladesh Bank issued license on 31 May 2007 in the name of Janata Bank Limited to conduct the
banking business. The registered office of the company is located at 110 Motijheel C/A, Dhaka-1000 and
the website addresses are www.janatabank-bd.com and jb.com.bd.
1.02 Nature of Business
The bank provides all kinds of commercial banking services to its customers including accepting
deposits, providing loans & advances, discounting & purchasing bills, remittance, money transfer,
foreign exchange transaction, guarantee, commitments etc. The principal activities of its subsidiaries
Janata Exchange Company Srl. Italy (JEC) and Janata Exchange Co, Inc. USA is to carry on the
remittance of hard-earned foreign currency to Bangladesh and that of another subsidiary company Janata
Capital and Investment Limited, Dhaka is to act as issue manager, share underwriter and portfolio
manager. The bank has opened an NRB branch at Motijheel, Dhaka to render exclusive service to non-
resident Bangladeshis.
1.03 Subsidiaries of the Bank
Janata Bank Limited has 3(three) 100% owned subsidiaries named Janata Exchange Company Srl. Italy,
Janata Exchange Co, Inc. USA and Janata Capital and Investment Limited, Dhaka, Bangladesh.
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2.00 Basis of Preparation and Significant Accounting Policies
The group and the bank have chosen to comply with the rules & regulations of Bangladesh Bank (Central
Bank of Bangladesh) over the requirements of BFRS which are disclosed below:
Bangladesh Bank: As per BRPD circular no. 14 dated 25 June 2003 and Bangladesh Bank Letter No.
DOS(SR)1153/161/2013-140 dated 09 April 2013 investments in quoted shares and unquoted shares
are revalued at the year end at market price and as per book value of last audited balance sheet
respectively. Provision should be made for any loss arising from diminution in value of investment.
2.01.02 Revaluation gains/losses on Government securities
BFRS: As per requirement of BAS 39 where securities will fall under the category of Held for Trading
(HFT), any changes in the fair value of held for trading assets is recognised through profit and loss
account. Securities designated as Held to Maturity (HTM) are measured at amortised cost method and
interest income is recognised through the profit and loss account using an effective interest rate.
Bangladesh Bank: HFT securities are revalued on the basis of mark to market on weekly basis and any
gains on revaluation of securities which have not matured as at the balance sheet date are recognised in
other reserves as a part of equity and any losses on revaluation of securities which have not matured as
at the balance sheet date are charged in the Profit and Loss Account. Interest on HFT securities including
amortization of discount are recognised in the profit and loss account. HTM securities which have not
matured as at the balance sheet date are amortised at the year end and any losses are recognized through
profit and loss account and gains on amortization are recognised in other reserve as a part of equity.
2.01.03 Financial instruments – presentation and disclosure
In several cases Bangladesh Bank guidelines categorise, recognise, measure and present financial
instruments differently from those prescribed in BAS 39. As such full disclosure and presentation
requirements of BFRS 7 and BAS 32 cannot be made in the financial statements.
2.01.04 Financial guarantees
BFRS: As per BAS 39, financial guarantees are contracts that require an entity to make specified
payments to reimburse the holder for a loss it incurs because a specified debtor fails to make payment
when due in accordance with the terms of a debt instrument. Financial guarantee liabilities are
recognised initially at their fair value, and the initial fair value is amortised over the life of the financial
guarantee. The financial guarantee liability is subsequently carried at the higher of this amortised
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amount and the present value of any expected payment when a payment under the guarantee has become
probable. Financial guarantees are included within other liabilities.
Bangladesh Bank: As per BRPD 14, financial guarantees such as letter of credit, letter of guarantee
will be treated as off-balance sheet items. No liability is recognised for the guarantee except the cash
margin. 1% provision is maintained on such off balance sheet items as per guidelines of Bangladesh
Bank.
Bangladesh Bank: As per BRPD 14, provision on loans and advances/investments are presented
separately as liability and cannot be netted off against loans and advances.
Bangladesh Bank: As per BRPD circular No.14 (23 September 2012), BRPD circular No. 19 (27
December 2012), BRPD circular No. 05 (29 May 2013) and BRPD circular No. 16 (18 November 2014)
a general provision at 0.25% to 5% under different categories of unclassified loans (good/standard &
SMA loans) has to be maintained regardless of objective evidence of impairment. Also provision for sub-
standard loans, doubtful loans and bad/losses has to be provided at 20%, 50% and 100% (in case of
agricultural loan 5% for sub-standard loans & doubtful loans and 100% for bad/losses) respectively for
loans and advances depending on the duration of overdue. Again as per BRPD circular no. 10 dated 18
September 2007 and BRPD circular no. 14 dated 23 September 2012, a general provision at 1% is
required to be provided for all off-balance sheet exposures. Such provision policies are not specifically
in line with those prescribed by BAS 39.
2.01.08 Recognition of interest in suspense
BFRS: Loans and advances to customers are generally classified as 'loans and receivables' as per BAS
39 and interest income is recognized using an effective interest rate method over the term of the loan.
Once a loan is impaired, interest income is recognised in Profit and Loss Accounts the same basis based
on revised carrying amount.
Bangladesh Bank: As per BRPD circular no. 14 dated 23 September 2012, once a loan is classified (SS
& DF), interest on such loans are not allowed to be recognised as income, rather the corresponding
amount needs to be credited to interest suspense account, which is presented as liability in the balance
sheet.
2.01.09 Cash and cash equivalent
BFRS: Cash and cash equivalent items should be reported as cash item as per BAS 7.
Bangladesh Bank: Some cash and cash equivalent items such as ‘money at call and on short notice’,
treasury bills, Bangladesh Bank bills and prize bond are not shown as cash and cash equivalents. Money
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at call and short notice presented on the face of the balance sheet, and treasury bills, prize bonds are
shown in investments.
Bangladesh Bank: As per BRPD 14, off balance sheet items (e.g. Letter of credit, Letter of guarantee,
Bills for collection etc.) must be disclosed separately on the face of the balance sheet.
Bangladesh Bank: As per BRPD 14, there must exist a face item named Non-banking asset.
Bangladesh Bank: Bangladesh Bank has issued templates for financial statements which is applicable
for all the banks operate in Bangladesh. The templates of financial statements issued by Bangladesh Bank
do not include Other Comprehensive Income nor the elements of Other Comprehensive Income allowed
to be included in a single Profit and Loss Account. As such the Bank does not prepare the other Profit
and Loss Account. However, elements of OCI, if any, are shown in the statements of changes in equity.
Bangladesh Bank: As per BRPD 14, cash flow statement has been guided by the Bangladesh Bank
which is the mixture of direct and indirect method.
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c) Investment in shares of listed companies are recognized at market value as per Bangladesh Bank
Letter No. DOS(SR)1153/161/2013-140 dated 09 April 2013.
d) Land and Buildings is recognised at the time of acquisition and subsequently re-valued at fair
value as per BAS 16 (Property, Plant and Equipment). Last revaluation was made in 2011.
2.03 Basis of Consolidation
The consolidated financial statements include the financial statements of Janata Bank Limited and its
three subsidiaries, made up to the end of the financial year. The consolidated financial statements have
been prepared in accordance with Bangladesh Financial Reporting Standard (BFRS)-10 'Consolidated
Financial Statements'. These consolidated financial statements are prepared to a common financial year
ended 31 December 2018.
Subsidiaries
Subsidiaries are entities 100% owned and controlled by the group. The financial statements of
subsidiaries are included in the 'Consolidated Financial Statements'.
Transactions Eliminated on Consolidation
Intra-group balances and transactions and any unrealised income and expenses arising from intra-group
transactions are eliminated in preparing the Consolidated Balance Sheet. Unrealised gains arising from
transactions with equity accounted investors are eliminated against the investment to the extent of the
group's interest in the investors. Unrealised losses are eliminated in the same way as unrealised gains,
but only to the extent there is no evidence of impairment.
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concentrations of risks and economic data (including levels of unemployment, inflation, interest rates,
exchange rates, sovereign rating etc.). Calculations are shown in note no. 7.12
2.05.03 Impairment of Available for Sale Investments
The group and the bank review their debt securities classified as available for sale investments at each
reporting date to assess whether they are impaired. This requires similar judgments as applied on the
individual assessment of loans and advances. The group and the bank also record impairment charges on
available for sale equity investments when there has been a significant or prolonged decline in the fair
value below their cost.
Deferred tax assets are recognised in respect of tax losses to the extent that it is probable that future
taxable profits will be available against which such tax losses can be utilised. Judgement is required to
determine the amount of deferred tax assets that can be recognised, based upon the likely timing and
level of future taxable profits, together with the future tax-planning strategies.
All discernible risks are accounted for in determining the amount of all known liabilities. Contingent
liabilities are possible obligations whose existence will be confirmed only by uncertain future events or
present obligations where the transfer of economic benefit is not probable or cannot be reliably measured.
Contingent liabilities are not recognised in the Balance Sheet but are disclosed unless they are remote.
The effect of a change in an accounting estimate recognised prospectively by including it in profit or loss
as follows:
(a) the period of the change, if the change affects that period only; or
(b) the period of the change and future periods, if the change affects both.
To the extent that a change in an accounting estimate gives rise to changes in assets and liabilities, or
relates to an item of equity, it shall be recognised by adjusting the carrying amount of the related asset,
liability or equity item in the period of the change.
Material prior period errors shall be retrospectively corrected in the first financial statements authorised
for issue after their discovery by:
(a) restating the comparative amounts for the prior period(s) presented in which the error occurred; or
(b) if the error occurred before the earliest prior period presented, restating the opening balances of assets,
liabilities and equity for the earliest prior period presented.
The most significant effect on the amount recognized in the financial statements are described in the
notes no. 21.00
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2.08 Foreign Currency
Foreign Currency Transaction
Foreign currency transactions are translated as per Bangladesh Accounting Standards BAS-21: 'The
Effects of Changes in Foreign Exchange Rates'. Transactions in foreign currencies are translated into the
respective functional currency of the operation at the spot exchange rate at the date of the transaction.
Monetary assets and liabilities denominated in foreign currencies at the reporting date are retranslated
into the functional currency at the spot exchange rate at that date. The foreign currency gain or loss on
monetary items is the difference between amortised cost in the functional currency at the beginning of
the period, adjusted for effective interest and payments during the period, and the amortised cost in
foreign currency translated at the spot exchange rate at the end of the period. Non-monetary assets and
liabilities denominated in foreign currencies that are measured at fair value are retranslated into the
functional currency at the spot exchange rate at the date that the fair value was determined. Foreign
currency differences arising on retranslation are recognised in profit or loss. Non-monetary assets and
liabilities that are measured in terms of historical cost in a foreign currency are translated using the
exchange rate at the date of the transaction.
Foreign Operation
The assets & liabilities of foreign operations are translated to Bangladeshi Taka at exchange rate
prevailing at the balance sheet date. The income & expenses of foreign operations are translated at
average rate of exchange for the year. Foreign currency differences are recognised and presented in the
foreign currency translation reserve in equity. When, a foreign operation is disposed of such that control,
the cumulative amount in the translation reserve related to that foreign operation is reclassified to profit
or loss as part of the gain or loss on disposal. When the group disposes of only part of its interest in a
subsidiary that includes a foreign operation while retaining control, the relevant proportion of the
cumulative amount is reactivated to non-controlling interest.
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2.12.01 Cash and Cash Equivalents
Cash and cash equivalents include notes and coins on hand, unrestricted balances held with Bangladesh
Bank and its agent bank, balance with other banks and financial institutions.
2.12.02 Investments
All investments are initially recognised at cost including acquisition charges associated with the
investment. Premiums are amortised and discount accredited, using the effective or historical yield
method. Accounting treatment of government treasury bills and bonds (categorised as HFT or/and
HTM) is made following DOS circular letter no. 5, dated 26 May 2008 and amended as on 28 January
2009 issued by Department of Offsite Supervision of Bangladesh Bank as shown in note no.6.01.03.
e) Derivative Investments
Derivatives are financial instruments that derive their value in response to changes in interest rates,
financial instrument prices, commodity prices, foreign exchange rates, credit risk and indices.
Derivatives are categorized as trading unless they are designated as hedging instruments.
All derivatives are initially recognized and subsequently measured at fair value, with all revaluation
gains recognized in the Profit and Loss Account (except where cash flow or net investment hedging
has been achieved, in which case the effective portion of changes in fair value is recognized within
other comprehensive income).
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f) Value of Investment has been shown as under:
Measurement
Initial
Investment Class After Initial Recording of Changes
Recognition
Recognition
Loss to Profit and Loss Account, gain
Govt. T-
Cost Fair value to revaluation reserve is shown in note
bills/bonds(HFT)
no.6.01.03.02
Increase or decrease in value to equity
Govt. T-
Cost Amortised cost impact is shown in note no.
bills/bonds(HTM)
6.01.03.01
Increase or decrease in value to Profit
Debenture/Bond Cost Amortised cost and Loss Account impact is shown in
note. 6.02
Loss to Profit and Loss Account, gain
Investment in listed
Cost Fair value to revaluation reserve impact is shown
securities
in note no.6.02.02
Prize bond Cost Cost None
g) Investments in Subsidiary
Investment in subsidiaries is accounted for under the cost method of accounting in the bank’s financial
statements in accordance with the Bangladesh Financial Reporting Standards (BFRS)-10
consolidated and separate financial statements. Accordingly, investments in subsidiaries are stated in
the bank’s balance sheet at cost, less impairment losses if any.
h) Statutory and Non-Statutory Investment
Statutory Investments
Amount which is invested for maintaining statutory liquidity ratio according to Monetary Policy
Department (MPD) circular no. 02, dated 10 December 2013 and DOS circular no. 01, dated 19
January 2014 of Bangladesh Bank is treated as statutory investment, these includes Treasury bill,
Treasury bond, other govt. securities etc. Details of statutory investments have been given in note no.
6.01 and 6.03
Non-statutory Investments
All investment except statutory investment is treated as non-statutory investment such as debentures,
corporate bond, ordinary shares (quoted and unquoted), preference share etc. Details of non-statutory
investments have been given in note no. 6.02 and 6.03
Interest is calculated on a daily product basis but charged and accounted for on accrual basis. Interest
is calculated on unclassified loans and advances and recognized as income during the year. Interest
on classified loans and advances is charged and kept in suspense account as per Bangladesh Bank
instructions and such interest is not accounted for as income until realised from borrowers. Interest is
not charged on bad and loss loans as per guidelines of Bangladesh Bank. Interest on restructured loan
(according to BRPD circular no. 04, dated 29 January 2016) and rescheduled loan is not accounted
for as income until realisation from borrower.
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b) Provision for Loans and Advances
Provision for loans and advances are made on quarter basis as well as year-end review by management
following instructions contained in BRPD circulars issued by Bangladesh Bank. General Provision
on unclassified loans and advances and specific provision on classified loans & advances are given
below:
c) Rate of Provision:
In addition, provision for loan and advances on United Arab Emirates (U.A.E) branches are made in
accordance with U.A.E. Central Bank rules and regulations. For restructuring loan, 1% additional
provision has been made as per circular no-04 dated 29 January 2015. Though there is no internal
policy of the bank for keeping provisions against Good Borrowers, an amount of BDT. 2.00 Crore
has been kept aside for future settlement for any claim of Good Borrowers against BRPD Circular
no-06 Dated 19 March 2015.
Project loan: Land and building are taken as security in the form of mortgage and plant & machinery
are taken in the form of hypothecation.
Working capital and trading loan: Goods are taken as security in the form of pledge and also goods
are taken as security in the form of hypothecation along with land and building as mortgage (value
not less than 1.50 times covering the loan amount) in the form of collateral security.
House building loan: Land and building are taken as security in the form of mortgage.
Overdraft: FDRs are taken in lien. The balance in DPS/JBSPS/SDPS/WEDB A/C’s is taken in “lien”.
Public sector loan: In most cases Govt. Guarantee is taken and no security is taken for government
loan and crops loans in agriculture sector.
g) Counter Party credit rating of the concerned borrowers are done from time to time and 448 No’s
parties involving BDT18,486.82 crore have been rated as such during the year.
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2.12.04 Property, Plant and Equipment
A. Recognition
(a) Fixed assets are stated at cost less accumulated depreciation as per Bangladesh Accounting Standards
BAS-16:
(b) 'Property, Plant and Equipment'. Acquisition cost of an asset comprises of the purchase price and any
directly attributable cost of bringing the asset to working condition for its intended use.
(c) Land & building is recognized at cost at the time of acquisition.
I. The cost means in accordance with the specific requirements of the BFRS, the cost is the amount of
cash or cash equivalents paid of the other consideration given to acquire an asset at the time of its
acquisition or construction or, where applicable, the amount attributed to that asset initially
recognized.
11. The cost of an item of property, plant and equipment is recognized as an asset if it is probable that
future economic benefits associated with the item will flow to the entity and the cost of the item can
be measured reliably.
B. Depreciation of Fixed Assets:
Depreciation is charged at the following rates on all fixed assets on the basis of estimated useful lives
as determined by fixed asset policy of the bank.
Depreciation Policy:
i) In all cases depreciation is calculated on the straight line method. From the beginning month of the
assets acquisition, depreciation is proportionately charged at the applicable rates on purchased assets in
the first half of that month. Otherwise, depreciation will be proportionately charged from the beginning
of the following month of acquisition. While assets are sold or disposed in the first half of the month,
no depreciation will be charged for that month. But depreciation will be charged for the month when
the assets are disposed in the second half of the month.
ii) No Depreciation charged on land and land developments.
iii) Methods, Useful life and Rates of Depreciation of fixed assets including intangible assets are given
below.
Depreciation Policy
Category of fixed assets Useful Life
Method of Dep. Rate of dep.
(Yrs)
Land - - Nil
Buildings Straight Line 40 2.50%
Machineries and equipment
i) Vault & Strong Room Straight Line 20 5%
ii) Lift Straight Line 20 5%
iii) Generator Straight Line 5 20%
iv) Air cooler Straight Line 5 20%
v) Fax Machine Straight Line 5 20%
vi) Photocopy Machine Straight Line 5 20%
vii) CCTV Straight Line 5 20%
viii) Camera Straight Line 5 20%
ix) Note Counting Machine Straight Line 5 20%
x) Fire Extinguisher & Arms Straight Line 5 20%
xi) Gun, Bullet Straight Line 10 10%
xii) Electric Appliances Straight Line 5 20%
xiii) Other items relevant to Machine &
Straight Line 5 20%
Equipment
Furniture and fixtures Straight Line 10 10%
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Motor Vehicles Straight Line 5 20%
Computers Straight Line 5 20%
(a) Hardware Straight Line 5 20%
(b) Software (Intangible Assets) Straight Line 5 20%
As per BAS-38, an intangible asset is an identifiable non-monetary asset without physical substance.
Amortization of intangible assets refers to the expensing of the cost of the intangible assets of the bank
over the total lifetime of those assets.
Bank management also follows a policy for amortization of intangible assets considering the durability
and useful lives of items. These intangible assets are booked under the head "Fixed Assets-Intangible
Assets" and amortized over their estimated useful lives by charging under the broad head "Depreciation-
Amortization of Intangible Assets". Yearly amortized amount is charged in Profit & Loss Account.
D. Recognition of Profit/Loss in case of disposal of Assets:
When the assets are sold, closed down or scrapped, the difference between the net proceeds and the net
carrying amount of the assets is recognized as a gain or loss in other operating income or loss in other
operating expenses. The cost and accumulated depreciation are eliminated when the disposal of assets
from the fixed assets schedule and gain or loss on such disposal assets is reflected in the Profit and Loss
Account.
An intangible asset should be derecognized (i.e. eliminated from the balance sheet): (i) on disposal; or
(ii) when no future economic benefits are expected from its use or disposal. Gains or losses arising are
determined as the difference between: (i) the net disposal proceeds; and (ii) the carrying amount of the
asset. Gains or losses are recognized as income or expense in the period in which the retirement or
disposal occurs.
After recognition as an asset, an item of property, plant and equipment whose fair value can be measured
reliably shall be carried at a revalued amount, being its fair value at the date of the revaluation less any
subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluation shall
be made with sufficient regularity to ensure that the carrying amount does not differ materiality from that
which would be determined using fair value at the end of the reporting period as per BAS-16.
Useful lives and method of depreciation on fixed assets are reviewed periodically. If useful lives of assets
do not differ significantly as these were previously estimated, revaluation of assets does not consider. In
case of long time, Useful assets may be revalued as per Bangladesh Bank guideline BRPD-10 with the
satisfaction of the external auditor of the bank.
At the time of revaluation of assets, the revalued amount of assets has been transferred to Asset
Revaluation Reserve. The revaluation reserve included in equity in respect of an item of property, plant
and equipment would be transferred directly to retained earnings when the asset is derecognized. This
would involve transferring the whole of the reserve when the asset is retired or disposed of. However,
some of the reserve would be transferred as the asset is used by an entity. In such a case, the amount of
the reserve transferred would be the difference between depreciation based on the revalued carrying
amount of the asset and depreciation based on the asset’s original cost. Transfers from revaluation reserve
to retained earnings are not made through profit or loss as per Para 41 under BAS-16.
F. Impairment of Assets:
The policy for all assets or cash-generating units for the purpose of assessing such assets for impairment
is as follows:
The bank assesses at the end of each reporting period or more frequently if events or changes in
circumstances indicate that the carrying value of an asset may be impaired, whether there is any
indication that an asset may be impaired. If any such indication exits, or when an annual impairment
testing for an asset is required, the bank makes an estimate of the asset’s recoverable amount. When the
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carrying amount of an asset or cash-generating unit exceeds its recoverable amount, the asset or cash-
generating unit is considered as impaired and is written down to its recoverable amount by debiting to
profit & loss account according to BAS-36.
Fixed assets are reviewed for impairment whenever events or charges in circumstances indicate that the
carrying amount of an asset may be impaired.
2.12.05 Leases
The determination of whether an arrangement is (or contains) a lease is based on the substance of the
arrangement at the inception date. The arrangement is assessed for whether fulfilment of the arrangement
is dependent on the use of a specific asset or the arrangement conveys a right to use the asset or assets,
even if that right is not explicitly specified in an arrangement. However, the bank has no assets in the
form of leases.
Leases in which a significant portion of the risks and rewards of ownership are retained by
another party, the leases are classified as operating leases. Payments, including pre-payments,
made under operating leases (net of any incentives received from the lessor) are charged to Profit
and Loss Account on a straight-line basis over the period of the lease.
Leases of assets where the group has substantially undertakes all the risks and rewards of
ownership are classified as finance leases. Finance leases are recognised at the lease’s
commencement at the lower of the fair value of the leased property and the present value of the
minimum lease payments. Each lease payment is allocated between the liability and finance
charges so as to achieve a constant rate on the finance balance outstanding. The corresponding
rental obligations, net of finance charges, are included in current and non- current borrowings.
No assets have been acquired by the bank as a finance lease.
2.12.05.02 Bank as a Lessor
Leases where the bank does not transfer substantially all of the risk and benefits of ownership of the
asset are classified as operating leases. Initial direct costs incurred in negotiating operating leases are
added to the carrying amount of the leased asset and recognised over the lease term on
the same basis as rental income. Contingent rents are recognised as revenue in the period in which
they are earned. No assets have been given by the bank as a lease.
An intangible asset is recognised only when its cost can be measured reliably and it is probable that the
expected future economic benefits that are attributable to it will flow to the bank.
Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible
assets acquired in a business combination is their fair value as at the date of acquisition. Following initial
recognition, intangible assets are carried at cost less any accumulated amortization and any accumulated
impairment losses.
The useful lives of intangible assets are assessed to be either finite or indefinite. Intangible assets with
finite lives are amortised over the useful economic life. The amortization period and the amortization
method for an intangible asset with a finite useful life are reviewed at least at each financial year end.
Changes in the expected useful life or the expected pattern of consumption of future economic benefits
embodied in the asset are accounted for by changing the amortization period or method, as appropriate,
and they are treated as changes in accounting estimates. The amortized expenses on intangible assets
with finite lives are presented as a separate line item in the Profit and Loss Account.
Amortization is calculated using the straight–line method to write down the cost of intangible assets to
their residual values over their estimated useful lives as follows:
31
Category of intangible assets Useful life
Computer software 5 years
Non-current assets and disposal groups classified as held for sale are measured at the lower of their
carrying amount and fair value less costs to sell. Non-current assets and disposal groups are classified as
held for sale if their carrying amounts will be recovered principally through a sale transaction rather than
through continuing use. This condition is regarded as met only when the sale is highly probable and the
asset or disposal group is available for immediate sale in its present condition, management has
committed to the sale, and the sale is expected to have been completed within one year from the date of
classification. In the consolidated Profit and Loss Account of the reporting period, and of the comparable
period of the previous year, income and expenses from discontinued operations are reported separately
from income and expenses from continuing operations, down to the level of profit after taxes, even when
the bank retains a non-controlling interest in the subsidiary after the sale. The resulting profit or loss
(after taxes) is reported separately in the Profit and Loss Account. Property, plant and equipment and
intangible assets once classified as held for sale are not depreciated or amortised. The group has no such
asset which are held for sale and management have not decided to discontinue any operation.
Other assets include all other financial assets, fees, unrealised income receivable, advance for
expenditure, stocks of stationery and stamp. Details are shown in note no. 9. Receivables are recognised
when there is a contractual right to receive cash or another financial asset from another entity.
Non-banking assets are acquired on account of the failure of a borrower to repay the loan in time after
receiving the decree from the court regarding the right and title of the mortgage property. There are no
assets acquired in exchange for loan during the period of financial statements.
The carrying amount of assets is reviewed at as and when consider necessary to determine whether there
is any indication of impairment of any asset or group of assets. If any such indication exists, the
recoverable amount of such assets is estimated and impairment losses are recognised immediately in the
financial statements. The resulting impairment loss is taken to the Profit and Loss Account except for
impairment loss on revalued assets, which is adjusted against related revaluation surplus to the extent
that the impairment loss does not exceed the surplus on revaluation of that asset.
Borrowings from other banks, financial institutions and agents include borrowing from Bangladesh Bank
and International Development Association (IDA) credit for 'Enterprise Growth and Bank Modernisation
Project (EGBMP)'. These items are brought to financial statements at the gross value of the outstanding
balance. Details are shown in note no. 11.
Deposits and other accounts include non-interest-bearing current deposit, interest bearing on demand and
short-term deposits, savings deposits, fixed deposits and various scheme deposits. These items are
brought to account at the gross value of the outstanding balances as shown in note no. 12.00.
Other liabilities comprise items such as provision for loans and advances/investments/other assets,
taxation, superannuation fund, gratuity fund and off balance sheet exposure and also includes interest
payable, interest suspense, accrued expenses etc. Other liabilities are recognised in the balance sheet
according to BAS-37, provision, contingent liabilities and contingent assets, guidelines of Bangladesh
Bank, Income Tax Ordinance, 1984; and internal policy of the bank. Provision and accrued expenses are
recognized in the financial statements when the bank has a legal or constructive obligation as a result of
32
past event, it is probable that an outflow of economic benefit will be required to settle the obligation and
a reliable estimate can be made on the amount of the obligation. Details are shown in note no. 13
a) Current Tax
Provision for current income tax has been made as per prescribed rate in the Finance Act, 2017 on
the taxable profit as per income tax ordinance 1984, it also complies with BAS-12: 'Income Taxes'.
Taxable profit may differ from profit as reported in the Profit and Loss Account as some income or
expenses that are taxable or deductible in other year or are never taxable or deductible.
Income tax assessed up to 2002 has been paid and final assessment for 2003-2018 is pending in
different stages break up of which is shown in note no. 13.04.01
b) Deferred Tax
Deferred tax is calculated on the taxable/deductible temporary differences between tax base and
carrying value of assets and liabilities as required by Bangladesh Accounting Standards BAS-12:
'Income Taxes'. Deferred tax is not recognised for the following temporary differences:
on the initial recognition of assets or liabilities in a transaction that is not a business combination
and that affects neither accounting nor taxable profit or loss;
related to investments in subsidiaries to the extent that it is probable and will not reverse in the
foreseeable future; and
arising on the initial recognition of goodwill.
Deferred tax is measured at the tax rates that are expected to be applied to the temporary differences
when they reverse, based on the laws that have been enacted or substantively enacted by the reporting
date.
Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax
liabilities against current tax assets, and they relate to income taxes levied by the same tax authority on
the same taxable entity, or on different tax entities, but they intend to settle current tax liabilities and
assets on a net basis or their tax assets and liabilities will be realised simultaneously.
A deferred tax asset is recognised for unused tax losses, tax credits and deductible temporary differences
to the extent that it is probable that future taxable profits will be available against which they can be
utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no
longer probable that the related tax benefit will be realised.
Deferred tax relating to unrealised surplus on revaluation of held to maturity (HTM) securities and land
and buildings are recognised directly in revaluation reserve as a part of equity and is subsequently
recognised in Profit and Loss Account on maturity of the security and disposal of land and buildings.
Details of deferred tax calculations for the year are shown in note no. 45.02
The retirement benefits and other employee benefits accrued for the employees of the bank as on
reporting date have been accounted for in accordance with the provisions of Bangladesh Accounting
Standards-19-"Employee Benefit".
a) Retirement Benefits
The bank operates two alternative retirement benefit schemes for its permanent employees, elements
of which are as follows:
1) Contributory Provident Fund (CPF) Scheme
i. Employees’ contribution 10%
ii. Bank’s contribution 10%
iii. This fund is operated by a Trustee Board comprising eleven (11) trustees.
iv. The CPF holders enjoy 13% rate of interest on the deposit of own & bank contribution in
CPF account.
33
v. Gratuity: Employees bearing contributory provident fund facilities are entitled gratuity for
2 months last basic pay drawn for each completed year of service subject to completion of
minimum 5 years of service.
1) Leave Encashment
The Officer/Staff who has opted for Pension and General Provident Fund, will be entitled to
leave encashment facilities up to18 (eighteen) months at the time of retirement as per letter No.
07.00.0000.171.13.006.15-81 dated 14 October2016 of Finance Division, Ministry of Finance,
and Government of Bangladesh. But if anybody has enjoyed leave encashment facilities before
retirement, he will be provided with the rest amount after deduction of the amount enjoyed
earlier, as per letter No. MF/B & 1/Banking/2/1/80/101 dated 31 May 1980 of previous Banking
& Investment Division, Ministry of Finance, and Government of Bangladesh. The leave
encashment benefit is paid to the incumbent debiting 'Expenditure A/C Leave Encashment Code
No.-1217'.
3) Benevolent Fund
Benevolent fund was initiated in 1986 and is funded by the monthly subscription of
executives/officer/staff, sale proceeds of old newspapers, income from investment and grant
from bank’s operating profit. Expenditures from these funds are scholarship, awards to the
children of employees for securing good result in the public examination and university levels,
marriage assistance, retirement benefit and death benefit paid to family members when any
employee expires.
As per Bangladesh Bank, BRPD circular no.14, dated 25 June 2001, the classification and provisioning
on other assets have been made and required provisions have been kept considering their recoverability
which is shown in note no. 9.07 & 13.10
34
2.13.07 Provision for Nostro Accounts
According to the guideline of Foreign Exchange Policy Department of Bangladesh Bank, Circular No.
FEOD (FEMO)/01/2005-677, dated 13 September 2005, bank has made adequate provision in this year
regarding the un-reconciled debit balance in Nostro Account as on the date of Balance Sheet which is
shown in note no. 13.12.01
In compliance with Bangladesh Bank guidelines, Off-Balance Sheet items have been disclosed under
contingent liabilities. As per BRPD Circular No.14, dated23 September 2012, the bank is required to
maintain provision @ 1% against Off-Balance Sheet items which is shown in note no. 13.07
The bank has a capital management process for measuring, deploying and monitoring its available capital
and assessing its adequacy. This capital management process aims to achieve major objectives, i,e,
exceed regulatory thresholds and meet long-term internal capital targets, maintain strong credit rating,
manage capital levels commensurate with the risk profile of the bank and provide the banks shareholder
with acceptable returns.
Capital is managed in accordance with the board approved capital management planning from time to
time. Senior management develops the capital strategy and overseas the capital management planning of
the bank. The bank's department of Accounts and Risk Management Department are playing key role to
implement the bank's capital strategy, capital is managed using both regulatory control measure and
internal matrix. Banks capital management status of the year ending date is shown at note no. 14.00
Paid up capital represents total amount of shareholder capital that has been paid in full by the Government
of Bangladesh i.e. ordinary shareholder. In the event of winding-up of the company, Ordinary
shareholder(s) rank after all other shareholders and creditors; and entitled to any residual proceeds of
liquidation.
As per the Banking Companies Act, 1991 (amendment up to2013) under section-24, it is required for the
bank to transfer 20% of its current year's profit before tax to statutory reserve until such reserve along
with share premium balance equals to its paid up capital which has been compiled by the bank.
Dividends on ordinary shares are recognised as a liability and deducted from equity when it is approved
by the bank’s shareholders meeting. Dividends for the year that are approved after the reporting date are
disclosed as an event after the reporting date.
35
DOS circular no. 5, dated 28 January 2009.The flow of Revaluation Reserve for HTM & HFT are
shown in note no-19.00 and 20.00
A contingent liability is –
Any possible obligation that arises from the past events and the existence of which will be confirmed
only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the
control of the bank; or any present obligation that arises from past events but is not recognised because:
it is not probable that an outflow of resources embodying economic benefits will be required to settle
the obligation; or
the amount of the obligation cannot be measured with sufficient reliability.
Contingent liabilities are not recognised but disclosed in the financial statements unless the possibility
of an outflow of resources embodying economic benefits is reliably estimated.
Contingent assets are not recognised in the financial statements as this may results in the recognition of
income which may never be realised.
Each material item as considered by management significant has been displayed separately in the
financial statements. No amount has been set off unless the bank has legal right to set off the amounts
and intends to settle on net basis. Income and expenses are presented on a net basis only when permitted
by the relevant accounting standards.
The values of any asset or liability as shown in the Balance Sheet are not off-set by way of deduction
from another liability or asset unless there exist a legal right therefore. No such incident existed during
the year.
The revenue during the year has been recognised following all conditions of revenue recognitions as
prescribed by Bangladesh Bank guideline and Bangladesh Accounting Standards BAS-18: 'Revenue'.
Interest on loans and advances is calculated on daily product basis and accrued at the end of each month,
but charged to customers' accounts on quarterly basis. In terms of the provisions of the Bangladesh
Accounting Standards BAS-18: 'Revenue', the interest income is recognised on accrual basis. Interest on
classified loans and advances including restructured loan (as per BRPD circular no. 04, dated 29 January
2015) and rescheduled have been credited to interest suspense account with actual receipt of interest
there from having credited to income as and when received as per instruction of Bangladesh Bank.
Income on investments is recognised on accrual basis. Investment income includes discount on treasury
bills, interest on treasury bonds and fixed deposits with other banks. Gain on investments in shares is
also included in investment income. Gain is recognised when it is realised.
Fees and commission income arises on services provided by the bank and recognised on accrual basis.
Commission charged to customers on letters of credit and letters of guarantee are credited to income at
the time of effecting the transactions.
Dividend income is recognised when the right to receive income is established. Usually this is the ex-
dividend date for equity securities. Dividends are presented in investment income.
36
2.17.05 Other Operating Income
Interest paid on borrowings and deposits are calculated on 360 days in a year and recognised on accrual
basis.
Other operating expenses incurred by the bank are recognised on actual and accrual basis.
The board of directors' takes the responsibility for the preparation and presentation of these financial
statements vide 569th Board Meeting dated 29 April 2019 of the bank.
The bank has six reportable segments, as described below, which are the bank's strategic business units.
The strategic business units offer different products and services, and are managed separately based on
the bank's management and internal reporting structure. For each of the strategic business units, the bank
management committee reviews internal management reports on at least a quarterly basis. The following
summary describes the operations in each of the bank's reportable segments. Details have been shown in
note no. 54.
Segment Operation
i. Loans & Advances Includes loans & Advances, other transactions and balances with
corporate customers & retail customers.
ii. Treasury Undertakes the bank's funding and maintenance of SLR, Asset-
liability management through borrowings and placement, currency
swap and investing in liquid assets such as short-term placements
and corporate and government debt securities.
iii. Overseas Branches (UAE) Four (4) overseas branches of Janata Bank Limited are situated in
UAE & operating banking business &money remittance etc. as per
head office instructions and other activities as permitted under the
banking law of UAE.
iv. Janata Exchange Company Janata Exchange Company Srl., Italy, subsidiary company of Janata
Srl, Italy Bank Limited operates its business in Italy. It performs the activities
of money remittance, issue cheques, payment instruments and
traveller's cheque and other activities as permitted under the banking
law of Italy.
v. Janata Exchange Janata Exchange Co, Inc. USA subsidiary company of Janata Bank
Co,Inc.USA Limited operates its business in USA. It performs the activities of
money remittance, issue cheques, payment instruments and
traveller's cheque and other activities as permitted under the banking
law of USA.
vi. Janata Capital and Established to do all kinds of merchant banking activities including
Investments Limited issue management, underwriting, portfolio management and other
transactions.
2.20 Compliance of Bangladesh Accounting Standards (BAS) and Bangladesh Financial Reporting
Standards (BFRS)
The Institute of Chartered Accountants of Bangladesh (ICAB) is the sole authority for adoption of
Bangladesh Accounting Standards (BASs) and Bangladesh Financial Reporting Standards (BFRSs).
While preparing the financial statements, Janata Bank Limited applied all applicable BAS and BFRS as
adopted by ICAB with some exceptions. Details are given below:
37
Name of the BAS / BFRS BAS/BFRS Status of compliance
38
Name of the BAS / BFRS BAS/BFRS Status of compliance
Share Based Payment BFRS-2 Not Applicable
Janata Bank Limited has developed separate guidelines for each of above risk oriented areas to manage
its own core risks. Details have been shown in separate report manual report on core risk management in
JBL.
Credit risk is managed through a framework that sets out policies and procedures covering the
measurement and management of credit risk in JBL. All credit exposure limits are approved within a
defined credit approval authority framework. Loans are the largest and most obvious source of credit
risk. Credit risk cannot be fully eliminated; it can be minimized by taking proper management. We have
implemented credit risk management policy to mitigate credit risk for maximizing interest income and
achieving profit target as well. A high powered committee is in place for monthly review, monitoring
and supervision of risks associated with credit activities.
Foreign exchange risk is the risk that a mismatch between the composition of asset and liabilities (in a
particular foreign currency) may have an adverse effect on net cash flow and the value of the banks net
equity due to movements in exchange rate. Foreign exchange risk is measured and monitored by the
Treasury Department. A sound and clear policy for dealing room is stated in the Foreign Exchange Risk
39
Management Guidelines of our bank. Front office, mid office and back office operations, dealing room
limits, dealer’s individual limit are maintained as per the guidelines to minimize the inherent risk in
foreign exchange transactions.
ALM is a process to manage the composition and pricing of the assets, liabilities and off balance sheet
items and aims to control bank’s exposure to market risks, with the objective of optimizing net income
and net equity value within the overall risk preferences of the bank. It has evolved in response to the
problems of banks dealing in a wide range of diversified assets, liabilities and contingent liabilities in
times of volatile interest rates and more generally a continuously changing economic environment. The
main focus of asset-liability management is to matching of the liabilities and assets in terms of maturity,
cost and yield rates. The maturity mismatches and disproportionate changes in the levels of assets and
liabilities cause the risks. ALCO of our bank are in force to mitigate these types of risks.
JBL treats the money laundering and terror financing issues as a vital part of its core risk management
activities. Bank has formulated its own guidelines for prevention of money laundering approved by the
Board of Directors in line with Anti Money Laundering Law and Bangladesh Bank guidelines. Money
laundering risk is a national issue. KYC and transaction profile as well CTR & STR reporting is being
followed in our bank to minimize money laundering risks.
It is a process for assuring the achievement of an organization's objectives with operational effectiveness
and efficiency, reliable financial reporting, compliance with laws, regulations and policies. Bank has a
separate ICC Division headed by DMD to formulate and implementation of ICC policy to minimize
internal control risk. The internal control team also reports to the audit committee/the board of directors
at a regular internal.
As per Bangladesh Accounting Standards BAS-24: 'Related Party Disclosures', parties are considered to
be related if one of the parties has the ability to control the other party or exercise significant influence
over the other party in making financial and operating decisions. The company carried out transactions
in the ordinary course of business on an arm’s length basis at commercial rates with its related parties.
Related party disclosures have been given in note no. 57.
2.23 Litigation
The bank is not a party to any lawsuits except those arising in the normal course of business, which were
filed against the default clients for non-performance in loans repayment and against various level of tax
authority regarding some disputed tax issues. The bank, however, provides adequate provisions as per
guidelines of BAS 37 and Bangladesh Bank circulars have been given in note no. 39 to 45.
40
2.24 Written Off
Write off describes a reduction in recognized value. It refers to recognition of the reduced or zero value
of an asset. Generally, it refers to loan for which a return on the loan is now impossible or unlikely. The
item's potential return is thus cancelled and removed from ("Written off") the bank's Balance Sheet.
Recovery against debts written off is credited to provision or revenue considering the previous position
of the loans.
Other assets having no realistic prospect of recovery have been written off against full provision without
reducing the claimed amount of the bank. Notional balances against other assets written off have been
kept to maintain the detailed memorandum records for such accounts/assets.
The bank has maintained separate register to have control over memorandum items such as bills for
collection, stock of travellers’ cheques, savings certificates, wage earners bonds, written off loans and
advances etc. for such transactions where the bank has only a business responsibility and no legal
commitment. However, Bills for Collection is shown under contingent liabilities as per Bangladesh
Bank’s format of reporting.
As per policy directives as well as in compliance with the BRPD Circular No. 11, dated 27October2013
of Bangladesh Bank, an audit committee of the board of Janata Bank Limited was constituted by the
Board of Directors in its 773rd meeting held on 30 December 2002 and thereafter lastly reconstituted in
the 455th board meeting of Janata Bank Limited held on 28 December 2016. The audit committee
comprises of four members including chairman who are competent and professionally skilled and also
the director of the board. The company secretary acts as a secretary of the audit committee.
During the year 2018, the audit committee of the board conducted 23 (Twenty-Three) meetings in which
the following important issues were reviewed and discussed along with others:
Reviewed Annual Audit Plan 2018 and Approved Annual Audit Plan for the year 2019 by the Internal
Audit Division.
Reviewed compliance status of the commercial audit report, comprehensive inspection report conducted
by Bangladesh Bank and statutory audit report and advised the management to ensure full compliance
on quarterly rest.
Reviewed the recovery status of classified loans as well as write off loan and providing necessary
guidelines to the management to reduce the NPLs;
Reviewed the reconciliation performance of inter branch transaction accounts on quarterly basis and
advised the management to keep it regular;
Discussed the internal audit report on different branches and instructed management to take necessary
disciplinary action against fraud forgery committed employees;
Discussed and reviewed the compliance report of internal audit conducted on difference branches on
quarterly basis;
Reviewed the annual financial statements and examined whether these are complete and consistent with
applicable accounting and reporting standards (IASs & IFRSs) set by respective governing bodies and
regulatory authorities;
Reviewed the report submitted by the Department of Bank Inspection-2, Bangladesh Bank on Internal
Control and Compliance policy (ICC Policy);
Reviewed the special audit and inspection report on irregularities taken place in Janata Exchange
Company Srl. Italy and recommended for board approval for taking necessary disciplinary action against
responsible persons;
Checked whether the annual financial statements reflect the complete and concrete information and
determine whether the statements are prepared according to existing rules & regulations and standards
enforced in the country and as per relevant prescribed accounting standards set by Bangladesh Bank;
41
Reviewed External Auditor appointment criteria and process and made recommendation to the board for
appointment of Grant Thornton Audit and Accounting Limited as statutory auditors of JBL four branches
in UAE for the year 2018;
Reviewed External Auditor appointment criteria and process and made recommendation to the board for
appointment of Aziz Halim Khair Choudhury Chartered Accountants firms as statutory auditors of the
bank for the year 2018.
A Risk Management Committee, comprising Directors of the Board has been formed in consistence with
Bank Company's Act (Amendment), 2013 and directives of BRPD Circular No.11, dated 27 October 2013
of Bangladesh Bank. Our risk management approach includes minimizing undue concentrations of
exposure, limiting potential losses from stress events and ensuring the continued adequacy of all our
financial resources. The committee is playing a vital role in risk management of the bank. It has a long
term plan to develop risk management culture in the bank.
The risk management committee comprises of 5(five) members including chairman who are competent
and professionally skilled and also the director of the board.
The committee conducted 12 (Twelve) meetings in the year 2018 where the following issues were
attended:
Stress Testing Reports June 2018 to assess the shock absorbing capacity of the bank;
Recovery status of Restructured Loan up to September, 2018;
Up to date information regarding creditable loan accounts;
Action Plan of the Divisional suits file of the disciplinary department;
Collateral status against more than 25 crore but less than 50 crore loan;
Proposed capital plan for 5 years from 2018 to 2022;
Approval to change the power of 8th Edition of the Delegation of Business Power in the part of
foreign exports and section 9,10,11, & 12 regarding to Foreign Local Documentary Bills Purchase;
To lessen risk weighted assets through increasing Credit Rating of the customer with a view to
compensate for Capital Shortfall;
2.28 Comparative Information
The accounting policies have been consistently applied by the bank and are consistent with those used in
the previous year. Comparative information is reclassified and rearranged wherever necessary to conform
to the current presentation.
These financial statements of the bank and its subsidiaries cover one calendar year from 01 January 2018
to 31 December 2018.
The financial statements are approved by the board of directors on 29 April 2019.
Basic earnings per share (EPS) has been computed by dividing the profit after tax by the weighted
average number of ordinary shares outstanding as at 31 December 2018 as per Bangladesh Accounting
Standards (BAS)-33: 'Earnings per Share'.
No diluted earnings per share are required to be calculated for the year as there was no scope for dilution
during the year under review.
42
Janata Bank Limited and its Subsidiaries
Consolidated Balance Sheet
as at 31 December 2018
2018 2017
Note
Taka Taka
PROPERTY AND ASSETS
Cash 3.00 44,480,330,961 48,532,967,105
Cash in Hand (including foreign currencies) 4,872,852,083 4,313,115,422
Balance with Bangladesh Bank and its Agent Bank(s)
(including foreign currencies) 39,607,478,878 44,219,851,683
Balance with Other Banks and Financial Institutions 4.00 46,397,318,601 34,719,005,259
6
Janata Bank Limited and its Subsidiaries
Consolidated Balance Sheet
as at 31 December 2018
2018 2017
Note
Taka Taka
OFF-BALANCE SHEET EXPOSURES
Other Commitments :
Documentary Credits and Short Term Trade-Related Transactions - -
Forward Assets Purchased and Forward Deposits Placed - -
Undrawn Note Issuance and Revolving Underwriting Facilities - -
Undrawn Formal Standby Facilities, Credit Lines and
Other Commitments - -
__________________________ ____________________
A K M Shariat Ullah FCA ACCA Md. Abdus Salam Azad
Chief Financial Officer CEO & Managing Director
7
Janata Bank Limited and its Subsidiaries
Consolidated Profit and Loss Account
for the year ended 31 December 2018
2018 2017
Note
Taka Taka
Operating Income
Interest Income 25.00 34,538,912,097 31,200,967,816
Interest Paid on Deposits and Borrowings etc. 26.00 26,973,734,985 27,095,656,917
Net Interest Income 7,565,177,112 4,105,310,899
Investment Income 27.00 11,423,070,992 14,604,611,802
Commission, Exchange and Brokerage 28.00 2,899,859,616 4,953,019,059
Other Operating Income 29.00 2,001,850,573 1,998,974,808
Total Operating Income (A) 23,889,958,293 25,661,916,568
Operating Expenses
Salary and Allowances 30.00 9,740,323,322 10,073,213,888
Rent, Taxes, Insurance, Electricity etc. 31.00 1,161,345,752 1,191,495,610
Legal Expenses 32.00 34,737,077 27,854,976
Postage, Stamp, Telecommunication etc. 33.00 258,687,057 256,995,434
Stationery, Printings, Advertisements etc. 34.00 258,639,456 238,565,313
Chief Executive's Salary and Fees 35.00 18,099,172 16,467,839
Directors' Fees 36.00 5,422,737 5,602,944
Auditors' Fees 37.00 9,260,936 8,773,652
Depreciation, Repair and Maintenance 38.00 992,080,749 849,219,582
Other Operating Expenses 39.00 1,595,549,900 1,465,132,080
Total Operating Expenses (B) 14,074,146,158 14,133,321,318
8
Janata Bank Limited and its Subsidiaries
Consolidated Profit and Loss Account
for the year ended 31 December 2018
2018 2017
Note
Taka Taka
Appropriations
__________________________ ____________________
A K M Shariat Ullah FCA ACCA Md. Abdus Salam Azad
Chief Financial Officer CEO & Managing Director
9
Janata Bank Limited and its Subsidiaries
Consolidated Statement of Cash Flows
for the year ended 31 December 2018
2018 2017
Note
Taka Taka
A. Cash Flows from Operating Activities
Interest Receipt in Cash 34,464,130,511 32,247,219,058
Interest Payments (25,589,077,076) (28,282,915,155)
Dividend Receipts 515,517,056 622,306,808
Fees and Commission Receipt in Cash 862,595,603 961,758,231
Recoveries of Loans Previously Written off 343,900,000 1,104,400,000
Cash Payments to Employees (9,758,422,494) (10,089,681,727)
Cash Payments to Suppliers (258,639,456) (238,565,313)
Income Tax Paid (1,489,767,891) (1,995,638,228)
Income from Investment 10,568,199,968 14,035,152,201
Receipts from Other Operating Activities 1,985,850,369 1,791,339,986
Payments for Other Operating Activities (3,329,562,228) (3,409,576,535)
Cash Generated from Operating Activities 8,314,724,362 6,745,799,326
__________________________ ____________________
A K M Shariat Ullah FCA ACCA Md. Abdus Salam Azad
Chief Financial Officer CEO & Managing Director
10
Janata Bank Limited and its Subsidiaries
Consolidated Statement of Changes in Equity
for the year ended 31 December 2018
Balance as at 31 December 2017 19,140,000,000 11,317,079,307 198,613,980 6,066,181,584 233,482,825 104,627,214 1,383,657,394 3,755,911,382 9,159,937,463 51,359,491,149
__________________________ ____________________
A K M Shariat Ullah FCA ACCA Md. Abdus Salam Azad
Chief Financial Officer CEO & Managing Director
11
Janata Bank Limited
Balance Sheet
as at 31 December 2018
2018 2017
Note
Taka Taka
PROPERTY AND ASSETS
Cash 3.00 44,416,647,445 48,518,470,774
Cash in Hand (including foreign currencies) 4,809,168,567 4,298,619,091
Balance with Bangladesh Bank and its Agent Bank(s)
(including foreign currencies) 39,607,478,878 44,219,851,683
Balance with Other Banks and Financial Institutions 4.00 46,066,295,782 34,441,960,214
In Bangladesh 30,435,687,789 19,919,581,909
Outside Bangladesh 15,630,607,993 14,522,378,305
12
Janata Bank Limited
Balance Sheet
as at 31 December 2018
2018 2017
Note
Taka Taka
OFF-BALANCE SHEET EXPOSURES
Other Commitments
Documentary Credits and Short Term Trade-Related Transactions - -
Forward Assets Purchased and Forward Deposits Placed - -
Undrawn Note Issuance and Revolving Underwriting Facilities - -
Undrawn Formal Standby Facilities, Credit Lines and
Other Commitments - -
__________________________ ____________________
A K M Shariat Ullah FCA ACCA Md. Abdus Salam Azad
Chief Financial Officer CEO & Managing Director
13
Janata Bank Limited
Profit and Loss Account
for the year ended 31 December 2018
2018 2017
Note
Taka Taka
Operating Income
Interest Income 25.00 34,488,658,414 31,145,611,896
Interest Paid on Deposits and Borrowings etc. 26.00 26,972,085,716 27,093,672,662
Net Interest Income 7,516,572,698 4,051,939,234
Investment Income 27.00 11,350,631,814 14,414,821,862
Commission, Exchange and Brokerage 28.00 2,863,390,252 4,910,829,124
Other Operating Income 29.00 2,002,163,919 2,000,706,200
Total Operating Income (A) 23,732,758,683 25,378,296,420
Operating Expenses
Provision For Taxation (including Ruler Tax) (F) 46.00 673,841,625 1,523,553,732
14
Janata Bank Limited
Profit and Loss Account
for the year ended 31 December 2018
2018 2017
Note
Taka Taka
Appropriations
__________________________ ____________________
A K M Shariat Ullah FCA ACCA Md. Abdus Salam Azad
Chief Financial Officer CEO & Managing Director
15
Janata Bank Limited
Statement of Cash Flows
for the year ended 31 December 2018
2018 2017
Note
Taka Taka
A. Cash flows from operating activities
Interest Receipt in Cash 34,413,876,828 32,119,331,480
Interest Payments (25,587,427,807) (28,280,930,900)
Dividend Receipts 522,599,243 563,096,000
Fees and Commission Receipt in Cash 827,065,410 920,124,101
Recoveries of Loans Previously Written off 343,900,000 1,104,400,000
Cash Payments to Employees (9,666,871,685) (10,008,129,559)
Cash Payments to Suppliers (257,781,858) (237,765,433)
Income Tax Paid (1,488,379,876) (1,987,625,678)
Income from Investment 10,488,678,603 13,904,573,069
Receipts from Other Operating Activities 1,986,163,715 1,793,071,378
Payments for Other Operating Activities (3,330,050,803) (3,419,017,617)
Operating profit before changes in operating assets and liabilities 8,251,771,770 6,471,126,841
__________________________ ____________________
A K M Shariat Ullah FCA ACCA Md. Abdus Salam Azad
Chief Financial Officer CEO & Managing Director
Balance as at 31 December 2017 19,140,000,000 11,317,079,307 198,613,980 6,066,181,584 233,482,825 104,627,214 1,383,657,394 3,755,911,382 9,163,780,345 51,363,334,031
____________________
__________________________ Md. Abdus Salam Azad
A K M Shariat Ullah FCA ACCA CEO & Managing Director
Chief Financial Officer
17
Janata Bank Limited
Liquidity Statement
Asset and Liability Maturity Analysis
as at 31 December 2018
Cash in Hand (including balance with Bangladesh Bank and its Agent Banks) 8,915,947,445 - - - 35,500,700,000 44,416,647,445
Balance with Other Banks and Financial Institutions 15,630,607,993 18,512,687,789 11,923,000,000 - - 46,066,295,782
Money at Call and Short Notice 3,417,300,000 - - - 92,355,555 3,509,655,555
Investments 7,425,865,188 2,498,738,200 25,953,110,111 102,067,384,860 28,838,694,801 166,783,793,160
Loans and Advances 47,112,500,000 7,510,000,000 198,416,900,000 220,389,200,000 60,278,560,206 533,707,160,206
Fixed assets including Land, Buildings, Furniture and Fixtures - - - - 10,277,044,324 10,277,044,324
Other Assets - - - - 61,285,879,507 61,285,879,507
Non-Banking Assets - - - - - -
Total assets 82,502,220,626 28,521,425,989 236,293,010,111 322,456,584,860 196,273,234,393 866,046,475,979
Liabilities
Borrowing from Bangladesh Bank, Other Banks, Financial Institutions and Agents - - 2,383,484,357 - 15,000,000,000 17,383,484,357
Deposits 114,922,026,541 146,199,815,455 179,762,475,117 187,141,910,423 43,226,965,718 671,253,193,254
Other Accounts - - 4,295,257,648 - - 4,295,257,648
Provision and Other Liabilities - - - - 118,558,171,849 118,558,171,849
Total liabilities 114,922,026,541 146,199,815,455 186,441,217,122 187,141,910,423 176,785,137,567 811,490,107,108
Net liquidity gap (32,419,805,915) (117,678,389,466) 49,851,792,989 135,314,674,437 19,488,096,826 54,556,368,871
__________________________ __________________________
A K M Shariat Ullah FCA ACCA Md. Abdus Salam Azad
Chief Financial Officer CEO & Managing Director
18
Amount in Taka
Ref. Consolidated Bank
Note
2018 2017 2018 2017
3.00 Cash
Cash In Hand (including foreign currencies) 3.01 4,872,852,083 4,313,115,422 4,809,168,567 4,298,619,091
Balance with Bangladesh Bank and its Agent
3.02
Bank(s) (including foreign currencies) 39,607,478,878 44,219,851,683 39,607,478,878 44,219,851,683
44,480,330,961 48,532,967,105 44,416,647,445 48,518,470,774
As per Monetary Policy Department (MPD) circular No. 01 dated 03 April 2018 of Bangladesh Bank, all scheduled Banks are required to maintain a CRR
minimum 5.5% on bi-weekly average basis of the average total demand and time liabilities of two months prior to current month (i.e. CRR of December
2018 will be based on weekly average balance of October 2018 as per Banking Regulation and Policy Department (BRPD) circular no. 12 dated 06
September 1998) and minimum 5% on daily basis. However, JBL has been maintaining its CRR according to policy.
Average demand and time liabilities 644,800,073,000 642,561,183,000
644,800,073,000 642,561,183,000
Required reserve (5.5% of average demand and time liabilities on bi-weekly basis) 35,464,004,015 41,766,476,895
Actual reserve held with Bangladesh Bank* 38,059,333,824 42,872,179,300
Surplus/(shortfall) 2,595,329,809 1,105,702,405
43
Amount in Taka
Ref. Consolidated Bank
Note
2018 2017 2018 2017
4.00 Balance with Other Banks and Financial Institutions
In Bangladesh 4.01 30,640,687,789 20,174,581,909 30,435,687,789 19,919,581,909
Outside Bangladesh 4.02 15,756,630,812 14,544,423,350 15,630,607,993 14,522,378,305
46,397,318,601 34,719,005,259 46,066,295,782 34,441,960,214
4.01 Balance in Bangladesh
Current deposits 4.01.01 12,359,090 46,253,210 12,359,090 46,253,210
Short term deposits 4.01.02 392,944 392,944 392,944 392,944
Fixed deposits 4.01.03 30,627,935,755 20,127,935,755 30,422,935,755 19,872,935,755
30,640,687,789 20,174,581,909 30,435,687,789 19,919,581,909
4.01.01 Current Deposits
Banks
Q-cash settlement account 7,727,541 46,253,210 7,727,541 46,253,210
NPSB settlement account 4,631,549 - 4,631,549 -
12,359,090 46,253,210 12,359,090 46,253,210
Non-bank Financial Institutions - - - -
12,359,090 46,253,210 12,359,090 46,253,210
4.01.02 Short Term Deposits
Banks
Eastern Bank Limited 42,843 42,843 42,843 42,843
Dhaka Bank Limited 98,087 98,087 98,087 98,087
National Bank Limited 32,742 32,742 32,742 32,742
Dutch Bangla Bank Limited 56,101 56,101 56,101 56,101
Uttara Bank Limited 73,321 73,321 73,321 73,321
Social Islami Bank Limited 60,658 60,658 60,658 60,658
ICB Islamic Bank Limited 29,192 29,192 29,192 29,192
392,944 392,944 392,944 392,944
Non-bank Financial Institutions - - - -
392,944 392,944 392,944 392,944
4.01.03 Fixed Deposits
Banks
Ansar VDP Unnayan Bank 300,000,000 300,000,000 300,000,000 300,000,000
Investment Corporation of Bangladesh 5,005,000,000 2,155,000,000 4,800,000,000 1,900,000,000
Bangladesh Commerce Bank Limited 300,000,000 300,000,000 300,000,000 300,000,000
AB Bank Limited 1,000,000,000 - 1,000,000,000 -
Premier Bank Limited 1,400,000,000 500,000,000 1,400,000,000 500,000,000
Midland Bank Limited 500,000,000 250,000,000 500,000,000 250,000,000
Bangladesh Development Bank Limited 500,000,000 - 500,000,000 -
Farmers Bank Limited 900,000,000 900,000,000 900,000,000 900,000,000
NRB Commercial Bank Limited 800,000,000 300,000,000 800,000,000 300,000,000
Union Bank Limited 1,800,000,000 1,300,000,000 1,800,000,000 1,300,000,000
Soutth Bangla Agriculture & Commerce Bank Limited 500,000,000 500,000,000 500,000,000 500,000,000
IFIC Bank Limited - 500,000,000 - 500,000,000
EXIM Bank Limited 1,000,000,000 1,000,000,000 1,000,000,000 1,000,000,000
Jamuna Bank Limited - 500,000,000 - 500,000,000
Meghna Bank Limited 500,000,000 200,000,000 500,000,000 200,000,000
National Bank Limited 1,500,000,000 500,000,000 1,500,000,000 500,000,000
One Bank Limited 1,000,000,000 500,000,000 1,000,000,000 500,000,000
NRB Global Bank Limited 1,000,000,000 500,000,000 1,000,000,000 500,000,000
Shahjalal Islami Bank Limited - 1,000,000,000 - 1,000,000,000
Social Islami Bank Limited 900,000,000 1,500,000,000 900,000,000 1,500,000,000
Mercantile Bank Limited 500,000,000 - 500,000,000 -
First Security Islami Bank Limited 500,000,000 - 500,000,000 -
Standard Bank Limited 1,000,000,000 - 1,000,000,000 -
Dhaka Bank Limited 1,000,000,000 - 1,000,000,000 -
ICB Islamic Bank Limited 142,935,755 142,935,755 142,935,755 142,935,755
22,047,935,755 12,847,935,755 21,842,935,755 12,592,935,755
Non-bank Financial Institutions
People's Leasing & Financial Services Limited 380,000,000 380,000,000 380,000,000 380,000,000
Industrial & Infrastructure Development Finance Company Limited 200,000,000 200,000,000 200,000,000 200,000,000
BD Finance Limited 550,000,000 400,000,000 550,000,000 400,000,000
Bay Leasing & Investment Limited 100,000,000 - 100,000,000 -
Delta Brac Housing Limited 2,300,000,000 2,500,000,000 2,300,000,000 2,500,000,000
Fareast Finance & Investment Limited 400,000,000 400,000,000 400,000,000 400,000,000
International Leasing and Finance Limited 300,000,000 300,000,000 300,000,000 300,000,000
Industrial Development Leasing Company 500,000,000 - 500,000,000 -
IPDC Finance Limited 200,000,000 200,000,000 200,000,000 200,000,000
LankaBangla Finance Limited 600,000,000 400,000,000 600,000,000 400,000,000
Premier Leasing & Finance Limited 500,000,000 400,000,000 500,000,000 400,000,000
Union Capital Limited 200,000,000 200,000,000 200,000,000 200,000,000
Reliance Finance Limited 650,000,000 500,000,000 650,000,000 500,000,000
Phoenix Finance Limited 500,000,000 200,000,000 500,000,000 200,000,000
National Finance Limited 100,000,000 100,000,000 100,000,000 100,000,000
FAS Finance & Investment Limited 300,000,000 300,000,000 300,000,000 300,000,000
GSP Finance Limited 200,000,000 200,000,000 200,000,000 200,000,000
Meridian Finance Limited 200,000,000 200,000,000 200,000,000 200,000,000
National Housing Limited 200,000,000 200,000,000 200,000,000 200,000,000
First Finance Limited 200,000,000 200,000,000 200,000,000 200,000,000
8,580,000,000 7,280,000,000 8,580,000,000 7,280,000,000
30,627,935,755 20,127,935,755 30,422,935,755 19,872,935,755
44
Amount in Taka
Ref. Consolidated Bank
Note
2018 2017 2018 2017
4.02 Balance outside Bangladesh
Debit balance with NOSTRO Accounts
1 WELLS Fargo Bank N. A. 197,689,913 1,770,759,783 197,689,913 1,770,759,783
2 Standard Chartered Bank, Kolkata 147,061,024 557,564,616 147,061,024 557,564,616
3 A.B. Bank Limited, Mumbai 287,119,512 220,695,939 287,119,512 220,695,939
4 Bhutan National Bank 2,381,615 9,441,839 2,381,615 9,441,839
5 Rastrya Banijja Bank, Kathmandu 7,401,539 392,186 7,401,539 392,186
6 Sonali Bank Limited, Kolkata 65,211,281 54,306,946 65,211,281 54,306,946
7 Peoples Bank, Colombo 8,334,088 8,248,043 8,334,088 8,248,043
8 ICICI Bank Limited, Mumbai 78,020,036 1,138,345,831 78,020,036 1,138,345,831
9 AMEX Bank Limited, Kolkata 102,210,672 101,201,410 102,210,672 101,201,410
10 Citi Bank, NY 77,833,911 - 77,833,911 -
11 Bank of Montreal, Canada 1,174,740 - 1,174,740 -
12 Union Bank of Switzerland - 57,056,753 - 57,056,753
13 Banka-Intesa SPA, Italy 27,117,362 - 27,117,362 -
14 Society General Paris - 7,132,609 - 7,132,609
15 Standard Chartered GMBH F.F. 1,251,000,399 - 1,251,000,399 -
16 Standard Chartered Bank, NY 329,574,622 - 329,574,622 -
17 Commerz Bank F. FURT 171,756,268 6,270,341 171,756,268 6,270,341
18 Standard Chartered Bank, London 131,290,787 17,818,659 131,290,787 17,818,659
19 Janata Bank Limited, Abu Dhabi (A/C-1) 3,584 3,760 3,584 3,760
20 Habib American Bank N.Y. 231,806,444 176,719,422 231,806,444 176,719,422
21 Janata Bank Limited, Abu Dhabi (A/C-2) 198,182,738 - 198,182,738 -
22 Habib Metropolitan Bank, Pakistan 612,044 15,913,874 612,044 15,913,874
23 Standard Chartered Bank, Tokyo - 83,527,841 - 83,527,841
24 ICICI Bank Limited (USD), Hong Kong 16,692,394 4,667,853 16,692,394 4,667,853
25 Wachovia Bank, EURO 6,313,200 8,988,783 6,313,200 8,988,783
26 Bank of Tokyo-Mitsubishi Ltd., Japan 1,326,796 11,044,960 1,326,796 11,044,960
27 ALPHA Bank A.E. Athens, Greece 23,508,589 24,376,425 23,508,589 24,376,425
28 Mashreq Bank, New York 38,320,081 297,844,724 38,320,081 297,844,724
29 Sonali Bank Limited, London UK (GBP) 27 27 27 27
30 United Bank of India 14,251,130 144,051,662 14,251,130 144,051,662
3,416,194,796 4,716,374,286 3,416,194,796 4,716,374,286
(i) UAE central bank 3,984,191,410 2,545,439,871 3,984,191,410 2,545,439,871
(ii) UAE other banks 7,781,875,400 7,187,827,500 7,781,875,400 7,187,827,500
(iii) UAE foreign banks 448,346,387 72,736,648 448,346,387 72,736,648
(iv) Italy other banks 126,022,819 22,045,045 - -
12,340,436,016 9,828,049,064 12,214,413,197 9,806,004,019
Amount in
Exchange Rate
Currencies Foreign
(Average at BDT)
Currencies (2018)
Dirham (UAE Central Bank) 173,050,406 23.02 3,984,191,410 2,545,439,871 3,984,191,410 2,545,439,871
Dirham (UAE Other Banks) 338,000,000 23.02 7,781,875,400 7,187,827,500 7,781,875,400 7,187,827,500
Dirham (UAE Foreign Banks) 19,473,594 23.02 448,346,387 72,736,648 448,346,387 72,736,648
EURO (for Janata Exchange Co. Srl, Italy) 1,313,198 95.97 126,022,819 22,045,045 -
12,340,436,016 9,828,049,064 12,214,413,197 9,806,004,019
4.03 Maturity Grouping of Balance with Other Banks and Financial Institutions
On demand - - -
Not more than one month 15,630,607,993 3,681,010,879 15,630,607,993 3,681,010,879
More than 1 months but less than 3 months 18,512,687,789 4,562,963,638 18,512,687,789 4,562,963,638
More than 3 months but less than 1 year 12,254,022,819 11,906,070,528 11,923,000,000 11,629,025,483
More than 1 year but less than 5 years - 14,568,960,214 - 14,568,960,214
More than 5 years - - - -
46,397,318,601 34,719,005,259 46,066,295,782 34,441,960,214
45
Amount in Taka
Ref. Consolidated Bank
Note
2018 2017 2018 2017
5.01 In Bangladesh
Banks
ICB Islamic Bank Limited 92,355,555 92,355,555 92,355,555 92,355,555
NRB Global Bank Limited - 750,000,000 - 750,000,000
Farmers Bank Limited - 90,000,000 - 90,000,000
Midland Bank Limited 120,000,000 100,000,000 120,000,000 100,000,000
Modhumoti Bank Limited 100,000,000 550,000,000 100,000,000 550,000,000
Meghna Bank Limited - 450,000,000 - 450,000,000
Pubali Bank Limited - 1,800,000,000 - 1,800,000,000
Standard Bank Limited 250,000,000 1,400,000,000 250,000,000 1,400,000,000
The City Bank Limited 500,000,000 1,900,000,000 500,000,000 1,900,000,000
AB Bank Limited - 700,000,000 - 700,000,000
NRB Commercial Bank Limited - 300,000,000 - 300,000,000
Premier Bank Limited - 1,650,000,000 - 1,650,000,000
National Bank Limited 400,000,000 700,000,000 400,000,000 700,000,000
Bank Asia Bank Limited - 1,000,000,000 - 1,000,000,000
NRB Bank Limited 190,000,000 450,000,000 190,000,000 450,000,000
The Farmers Bank Limited 80,000,000 - 80,000,000 -
Citi Bank NA 200,000,000 - 200,000,000 -
Uttara Bank Limited 500,000,000 - 500,000,000 -
Rupali Bank Limited - 500,000,000 - 500,000,000
2,432,355,555 12,432,355,555 2,432,355,555 12,432,355,555
6.00 Investments
Government securities 6.01 120,195,131,501 146,987,729,573 120,195,131,501 146,987,729,573
Other investments 6.02 49,140,823,496 32,734,654,121 46,588,661,659 30,354,421,268
169,335,954,997 179,722,383,694 166,783,793,160 177,342,150,841
46
Amount in Taka
Ref. Consolidated Bank
Note
2018 2017 2018 2017
6.01.02 Government Notes/ Bonds/ Other Securities
2-15 years Special Treasury Bond 23,085,100,000 23,085,100,000 23,085,100,000 23,085,100,000
2 years Bangladesh Govt. Treasury Bond 8,758,513,232 6,058,589,602 8,758,513,232 6,058,589,602
5 years Bangladesh Govt. Treasury Bond 17,206,335,609 18,932,530,707 17,206,335,609 18,932,530,707
10 years Bangladesh Govt. Treasury Bond 32,158,967,361 30,994,142,603 32,158,967,361 30,994,142,603
15 years Bangladesh Govt. Treasury Bond 13,263,394,106 13,790,767,661 13,263,394,106 13,790,767,661
20 years Bangladesh Govt. Treasury Bond 6,123,558,245 5,816,854,454 6,123,558,245 5,816,854,454
25 years Treasury Bond (JSAP) 33,497,500 109,205,000 33,497,500 109,205,000
1-13 years Special Treasury Bond (BJMC) 7,467,100,000 7,467,100,000 7,467,100,000 7,467,100,000
ICB 986,652,700 986,652,700 986,652,700 986,652,700
Karmasangthan Bank 160,000,000 160,000,000 160,000,000 160,000,000
Remeasured 7,781,563,148 7,835,019,911 7,781,563,148 7,835,019,911
117,024,681,901 115,235,962,638 117,024,681,901 115,235,962,638
6.01.03 Investment in Government securities categorised as per Bangladesh Bank's DOS circular No. 05 date 26 May 2008 and DOS circular No. 05 date
28 January 2009
6.01.03.01 Held to Maturity (HTM)
Treasury Bill
182 days Treasury Bill - 496,155,608 - 496,155,608
364 days Treasury Bill - 437,832,117 - 437,832,117
07 days Bangladesh Bank Bill - 1,999,677,090 - 1,999,677,090
- 2,933,664,815 - 2,933,664,815
Bonds
2 years Bangladesh Govt. Treasury Bond 5,708,915,445 700,205,100 5,708,915,445 700,205,100
5 years Bangladesh Govt. Treasury Bond 10,488,151,923 12,118,556,190 10,488,151,923 12,118,556,190
10 years Bangladesh Govt. Treasury Bond 2,984,234,519 3,204,163,115 2,984,234,519 3,204,163,115
15 years Bangladesh Govt. Treasury Bond 3,558,905,076 4,063,006,531 3,558,905,076 4,063,006,531
20 years Bangladesh Govt. Treasury Bond 134,391 - 134,391 -
22,740,341,353 20,085,930,936 22,740,341,353 20,085,930,936
Total HFT 22,740,341,353 36,960,342,326 22,740,341,353 36,960,342,326
Grand Total (HTM & HFT) 117,024,681,901 135,044,038,843 117,024,681,901 135,044,038,843
47
Amount in Taka
Ref. Consolidated Bank
Note
2018 2017 2018 2017
6.02.01 Corporate Bond
PBL Subordinated Bond 1,700,000,000 250,000,000 1,700,000,000 250,000,000
MTBL Subordinated Bond 500,000,000 500,000,000 500,000,000 500,000,000
DBL Subordinated Bond 1,500,000,000 500,000,000 1,500,000,000 500,000,000
TBL Subordinated Bond 2,090,000,000 660,000,000 2,090,000,000 660,000,000
UCBL Subordinate Bond 1,250,000,000 1,500,000,000 1,250,000,000 1,500,000,000
SBL Subordinate Bond 680,000,000 740,000,000 680,000,000 740,000,000
Bank Asia Subordinate Bond 450,000,000 500,000,000 450,000,000 500,000,000
EBL Subordinate Bond 200,000,000 250,000,000 200,000,000 250,000,000
AB Bank Subordinate Bond 400,000,000 500,000,000 400,000,000 500,000,000
One Bank Subordinate Bond 700,000,000 800,000,000 700,000,000 800,000,000
IFIC Bank Subordinate Bond 1,000,000,000 1,000,000,000 1,000,000,000 1,000,000,000
SEB Bank Subordinate Bond 1,500,000,000 500,000,000 1,500,000,000 500,000,000
Exim Bank Subordinate Bond 500,000,000 500,000,000 500,000,000 500,000,000
The City Bank Subordinate Bond 750,000,000 750,000,000 750,000,000 750,000,000
Pubali Bank Subordinate Bond 1,000,000,000 1,000,000,000 1,000,000,000 1,000,000,000
Agrani Bank Subordinate Bond 4,000,000,000 4,000,000,000 4,000,000,000 4,000,000,000
First Security Islami Bank Subordinate Bond 1,000,000,000 1,000,000,000 1,000,000,000 1,000,000,000
Rupali Bank Ltd. 2,000,000,000 - 2,000,000,000 -
Premier Bank 1,000,000,000 - 1,000,000,000 -
Mercantile Bank 1,000,000,000 - 1,000,000,000 -
Jamuna Bank 400,000,000 - 400,000,000 -
Farmers Bank Ltd 450,000,000 - 450,000,000 -
Dutch Bangla Bank Ltd. 1,000,000,000 - 1,000,000,000 -
Investment Corporation of Bangladesh (ICB) 5,000,000,000 - 5,000,000,000 -
30,070,000,000 14,950,000,000 30,070,000,000 14,950,000,000
48
Amount in Taka
Ref. Consolidated Bank
Note
2018 2017 2018 2017
6.03 Categorised as Statutory and Non-statutory Investment
Statutory investment portfolio 6.03.01 120,175,264,001 146,974,406,973 120,175,264,001 146,974,406,973
Non-statutory investment portfolio 6.03.02 49,160,690,996 32,747,976,721 46,608,529,159 30,367,743,868
169,335,954,997 179,722,383,694 166,783,793,160 177,342,150,841
* Investment in quoted shares has been valued at the fair value as on the reporting date. As per Bangladesh Bank's DOS circular No. 04 dated 24 November
2011, provisions for diminution value of shares will be made on the difference of average cost and market price. Details given in Note No.-51.
49
Amount in Taka
Ref. Consolidated Bank
Note
2018 2017 2018 2017
50
Amount in Taka
Ref. Consolidated Bank
Note
2018 2017 2018 2017
7.02.01 Receivables in Bangladesh
Inland bills purchased (IBP) 346,686,794 376,136,258 346,686,794 376,136,258
T.T. purchased 50,000 50,000 50,000 50,000
Local documentary bill purchased (LDBP) 551,285,684 791,265,687 551,285,684 791,265,687
898,022,478 1,167,451,945 898,022,478 1,167,451,945
7.02.02 Receivables outside Bangladesh
Foreign Documentary Bills Purchased (FDBP) 15,778,411,753 16,906,434,967 15,778,411,753 16,906,434,967
15,778,411,753 16,906,434,967 15,778,411,753 16,906,434,967
7.03 Loans and Advances (in and outside Bangladesh) including Bills Purchased and Discounted
7.03.01 In Bangladesh
Loans 380,807,299,849 336,385,275,122 378,354,924,287 333,840,446,593
Cash credits 115,437,181,005 97,788,551,204 115,437,181,005 97,788,551,204
Overdrafts 19,372,802,142 5,869,831,356 19,372,802,142 5,869,831,356
Bills purchased and discounted 16,286,105,113 17,654,501,859 16,286,105,113 17,654,501,859
531,903,388,109 457,698,159,541 529,451,012,547 455,153,331,012
7.06.01 Details of Large Loan (loans and advances allowed to each customer exceed 10% or more of Bank's capital)
Large Loans Details (loan amount more than 10% of Bank's total capital)
As on 31 December 2018 bank total capital is Tk. 54,322,801,423 and 10% of this amount is Tk. 5,432,280,142.
51
Amount in Taka
Ref. Consolidated Bank
Note
2018 2017 2018 2017
Name of the group Funded Loan Non-funded Loan Total
14)Jamuna Group 4,878,600,000 1,615,200,000 6,493,800,000
15)Beximco Pharmaceuticals Ltd. 4,651,200,000 1,687,900,000 6,339,100,000
16)B.R Spinning Ltd. 5,855,500,000 - 5,855,500,000
246,750,900,000 51,311,400,000 298,062,300,000
No. of client 16 11
Total Funded and Non-funded liabilities 298,062,300,000 134,786,000,000
Total Classified loan therein:
Sub Standard (SS) 28,000,600,000 2,085,700,000
Doubtful (DF) 6,432,600,000 2,213,500,000
Bad/Loss (BL) 81,668,600,000 1,718,800,000
116,101,800,000 6,018,000,000
Measures taken for recovery of classified loan
Bank as a whole takes following steps to recover its classified loans and advances
i) Sending letters and reminder to customer.
ii) Recovery cell including top management level holds discussion with the clients to recover the loans.
iii) Maintaining special recovery arrangement through loan fair, client gathering, recovery campaign, etc.
iv) Legal proceedings and quick settlement.
v) Providing incentives to employees for cash recovery from classified and written-off loans.
Outside Bangladesh
Overseas 4 4,256,147,659 4,426,720,872 4,256,147,659 4,426,720,872
Sub total 4 4,256,147,659 4,426,720,872 4,256,147,659 4,426,720,872
Outside Bangladesh
Overseas units 4 4,256,147,659 4,426,720,872 4,256,147,659 4,426,720,872
Sub total 4 4,256,147,659 4,426,720,872 4,256,147,659 4,426,720,872
52
Amount in Taka
Ref. Consolidated Bank
Note
2018 2017 2018 2017
Classified
Sub-standard 33,860,381,734 6,422,400,000 33,860,381,734 6,422,400,000
Doubtful 5,028,008,384 6,262,300,000 5,028,008,384 6,262,300,000
Bad/loss 141,096,073,730 63,310,800,000 141,096,073,730 63,310,800,000
Sub total 179,984,463,848 75,995,500,000 179,984,463,848 75,995,500,000
Grand Total 536,159,535,768 462,124,880,413 533,707,160,206 459,580,051,884
7.09.01 Classification Status of Loans and Advances (In Bangladesh)
Unclassified
Standard 292,623,889,882 300,607,552,193 290,171,514,320 298,062,723,664
292,623,889,882 300,607,552,193 290,171,514,320 298,062,723,664
SMA 2,997,832,723 24,775,800,000 2,997,832,723 24,775,800,000
SMA-RST 57,095,925,000 56,664,700,000 57,095,925,000 56,664,700,000
60,093,757,723 81,440,500,000 60,093,757,723 81,440,500,000
Sub total 352,717,647,605 382,048,052,193 350,265,272,043 379,503,223,664
Classified
Sub-standard 33,782,677,924 6,403,807,957 33,782,677,924 6,403,807,957
Doubtful 4,978,875,545 6,230,551,956 4,978,875,545 6,230,551,956
Bad/loss 140,424,187,035 63,015,747,435 140,424,187,035 63,015,747,435
Sub total 179,185,740,504 75,650,107,348 179,185,740,504 75,650,107,348
Total 531,903,388,109 457,698,159,541 529,451,012,547 455,153,331,012
7.09.02 Classification Status of Loans and Advances (Outside Bangladesh)
Unclassified
Standard 3,457,424,315 4,081,328,220 3,457,424,315 4,081,328,220
SMA - - - -
Sub total 3,457,424,315 4,081,328,220 3,457,424,315 4,081,328,220
Classified
Sub-standard 77,703,810 18,592,043 77,703,810 18,592,043
Doubtful 49,132,839 31,748,044 49,132,839 31,748,044
Bad/loss 671,886,695 295,052,565 671,886,695 295,052,565
Sub total 798,723,344 345,392,652 798,723,344 345,392,652
Total 4,256,147,659 4,426,720,872 4,256,147,659 4,426,720,872
Grand total 536,159,535,768 462,124,880,413 533,707,160,206 459,580,051,884
7.10 Industry-wise Segregation of Loans and Advances
Agriculture 20,912,900,000 16,472,070,000 20,912,900,000 16,472,070,000
Industrial (Manufacturing)
RMG 95,054,500,000 99,344,269,000 95,054,500,000 99,344,269,000
Textile 68,615,400,000 67,210,137,000 68,615,400,000 67,210,137,000
Ship building & ship breaking 4,971,100,000 5,504,400,000 4,971,100,000 5,504,400,000
Agro-based industry 23,394,300,000 15,341,865,000 23,394,300,000 15,341,865,000
Other industrial (large scale) 65,361,300,000 64,539,617,000 65,361,300,000 64,539,617,000
Other industrial (small, medium & cottage) 9,804,600,000 10,834,225,000 9,804,600,000 10,834,225,000
267,201,200,000 262,774,513,000 267,201,200,000 262,774,513,000
Industrial (service)
Construction loans 30,093,400,000 30,143,392,000 30,093,400,000 30,143,392,000
Transport & communication 3,400,600,000 3,764,944,000 3,400,600,000 3,764,944,000
Other service industries 21,574,500,000 16,140,877,000 21,574,500,000 16,140,877,000
55,068,500,000 50,049,213,000 55,068,500,000 50,049,213,000
Consumer credit 1,412,400,000 1,570,350,000 1,412,400,000 1,570,350,000
Trade & commerce 84,607,000,000 84,842,278,000 84,607,000,000 84,842,278,000
Credit to NBFI - - - -
Loans to capital market
Merchant banks - - - -
Other than merchant banks - - - -
Margin loan 2,452,375,562 2,544,828,529 - -
2,452,375,562 2,544,828,529 - -
Staff Loan 47,236,505,251 42,509,298,058 47,236,505,251 42,509,298,058
Other loans 57,268,654,955 1,362,329,826 57,268,654,955 1,362,329,826
536,159,535,768 462,124,880,413 533,707,160,206 459,580,051,884
7.11 Sector-wise Loans and Advances
Government 7.11.01 10,361,430,000 866,768,000 10,361,430,000 866,768,000
Other public 7.11.02 18,854,870,000 17,414,836,000 18,854,870,000 17,414,836,000
Private 7.11.03 506,943,235,768 443,843,276,413 504,490,860,206 441,298,447,884
536,159,535,768 462,124,880,413 533,707,160,206 459,580,051,884
7.11.01 Government
Unclassified
Standard 10,239,232,000 738,373,000 10,239,232,000 738,373,000
SMA - - - -
Sub total 10,239,232,000 738,373,000 10,239,232,000 738,373,000
Classified
Sub-standard - - - -
Bad/loss 122,198,000 128,395,000 122,198,000 128,395,000
Sub total 122,198,000 128,395,000 122,198,000 128,395,000
Total 10,361,430,000 866,768,000 10,361,430,000 866,768,000
53
Amount in Taka
Ref. Consolidated Bank
Note
2018 2017 2018 2017
7.11.02 Other Public
Unclassified
Standard 17,899,576,000 16,063,090,000 17,899,576,000 16,063,090,000
SMA - 1,259,042,000 - 1,259,042,000
Sub total 17,899,576,000 17,322,132,000 17,899,576,000 17,322,132,000
Classified
Sub-standard 188,751,000 - 188,751,000 -
Doubtful - - - -
Bad/loss 766,543,000 92,704,000 766,543,000 92,704,000
Sub total 955,294,000 92,704,000 955,294,000 92,704,000
Total 18,854,870,000 17,414,836,000 18,854,870,000 17,414,836,000
7.11.03 Private
Unclassified
Standard 267,942,506,197 287,887,417,413 265,490,130,635 285,342,588,884
267,942,506,197 287,887,417,413 265,490,130,635 285,342,588,884
SMA 2,997,832,723 23,516,758,000 2,997,832,723 23,516,758,000
SMA-RST 57,095,925,000 56,664,700,000 57,095,925,000 56,664,700,000
60,093,757,723 80,181,458,000 60,093,757,723 80,181,458,000
Sub total 328,036,263,920 368,068,875,413 325,583,888,358 365,524,046,884
Classified
Sub-standard 33,671,630,734 6,422,400,000 33,671,630,734 6,422,400,000
Doubtful 5,028,008,384 6,262,300,000 5,028,008,384 6,262,300,000
Bad/loss 140,207,332,730 63,089,701,000 140,207,332,730 63,089,701,000
Sub total 178,906,971,848 75,774,401,000 178,906,971,848 75,774,401,000
Total 506,943,235,768 443,843,276,413 504,490,860,206 441,298,447,884
iii) Loans considered good secured by the personal undertakings of one or more parties in addition to the
91,394,059,102 57,674,499,294
personal guarantee of the debtors;
iv) Loans adversely classified; provision not maintained there against; - -
533,707,160,206 459,580,051,884
v) Loans due by directors or officers of the bank or any of these either separately or jointly with any other
persons; 47,236,505,251 42,509,298,058
vi) Loans due from companies or firms in which the directors of the bank have interest as directors, partners or
- -
managing agents or in case of private companies as members;
vii) 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 separately or jointly with any other 47,236,505,251 42,509,298,058
persons;
viii)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, managing agents or in the - -
case of private companies as members;
a) Amount of classified loans on which interest has not been charged: 141,096,073,730 63,310,800,000
i) (Decrease)/Increase in provision 7,181,600,000 4,316,200,000
ii) Amount of written off loan during the year 236,400,000 123,700,000
iii) Amount realized (including adj.) during the year against loan previously written-off: 437,200,000 1,201,100,000
Cash recovery 343,900,000 1,104,400,000
Adjustment 93,300,000 96,700,000
54
Amount in Taka
Ref. Consolidated Bank
Note
2018 2017 2018 2017
b) Amount of provision kept against loans classified as bad/loss as at the reporting date 28,329,500,000 21,147,900,000
c) Interest credited to the Interest Suspense Account 45,106,440,383 34,951,937,015
e) Net (outstanding) amount of written-off loan at the end of the year (a-d) 31,556,901,000 31,757,701,000
f) Amount of written-off loan for which law suit has been filled 37,579,700,000 32,658,000,000
Provision maintained
For unclassified loan 13.06.01 2,106,586,803 4,493,481,993
For classified loan 13.06.02 30,804,017,101 23,910,512,280
32,910,603,904 28,403,994,273
Provision excess/(shortfall) 903,904 59,394,273
Janata Bank maintained provision amounting to Taka 32,910 million i.e. 28.50% of required provision and deferred the remaining amount of required
provision as per terms mentioned in Bangladesh Bank letter ref: BRPD(P-1)/661/13/2019-3266 dated 25 April 2019 and considering the quick summary
report of Bangladesh Bank vide letter ref: DBI-2(UB-2)/2230/2019-810 dated 21 April 2019. Subsequently, Janata Bank received a letter from Bangladesh
Bank vide letter ref: DBI-2(UB-2)/2230/2019-858 dated 29 April 2019 to make addittional provision Taka 1,664.30 million which was classified by March
2019.
7.17 Restructured loan as per BRPD Circular No.- 04 dated 29 January 2015
Outstanding
Status after
SL Name of Borrower Amount as on Status before Restructure
31 December 2018
Restructure
1. Thermex Group 5,378,200,000 TK 329.31 Crore Standard & TK 313.34 Crore SMA SMA
2. Jamuna Group 4,318,025,000 UC SMA
3. Annontex Group 12,158,600,000 TK 548.57 Crore Standard & TK 576.98 Crore SMA SMA
4. Beximco Group 23,806,400,000 Standard SMA
5. Ratanpur Group 6,083,600,000 Standard SMA under Writ
6. S A Group 1,182,300,000 BL SMA under Writ
7. M R Group 4,168,800,000 Standard SMA under Writ
57,095,925,000
55
Amount in Taka
Ref. Consolidated Bank
Note
2018 2017 2018 2017
8.00 Fixed Assets including Land, Building, Furniture & Fixtures
Cost Less Accumulated Depreciation
Property, plant, equipment
Land 6,576,184,290 6,566,184,290 6,576,184,290 6,566,184,290
Building 1,661,067,857 1,572,471,131 1,639,593,177 1,543,660,217
Furniture and fixture 713,683,779 693,927,148 704,661,957 689,106,830
Machinery & equipment 200,170,884 96,414,413 199,105,627 95,220,466
Vehicle 107,793,531 158,601,997 105,409,545 155,622,015
Computer hardware 875,665,960 961,813,328 874,079,985 960,133,390
10,134,566,301 10,049,412,307 10,099,034,581 10,009,927,208
Intangible asset
Computer software 178,696,592 299,460,703 178,009,743 298,697,537
Organizational Cost, JEC, USA 16,753,301 16,817,331 - -
195,449,893 316,278,034 178,009,743 298,697,537
10,330,016,194 10,365,690,341 10,277,044,324 10,308,624,745
Details in note - 53
In Bangladesh
Investment to JCIL, Dhaka (subsidiary company) 9.01.01 - - 4,274,000,000 4,274,000,000
- - 4,274,000,000 4,274,000,000
Outside Bangladesh
Investment in JEC, Italy (subsidiary company) 9.01.02 - - 58,617,803 58,617,803
Investment in JEC, USA (subsidiary company) 9.01.03 - - 81,590,000 81,590,000
- - 140,207,803 140,207,803
- - 4,414,207,803 4,414,207,803
9.01.01 Investment in Janata Capital and Investment Limited, Dhaka (subsidiary company)
Janata Capital and Investment Limited, Dhaka incorporated on 13 April 2010 vide incorporation certificate no.C-83898/10 issued by the Registrar of Joint
Stock Companies and Firms (RJSC) with 100% ownership of Janata Bank Limited having Tk. 5,000 million authorized capital and its paid-up capital is Tk.
4,274.00 million. The company starts its operations from 26 September 2010 and its main functions are issue manager, underwriting and portfolio
management.
Apart from Rome Branch, JEC, Italy has another Branch in Milan, Italy, which was established vide MOF’s approval Letter # Ag/Awe/e¨vswKs bxt/kv-1 /12
/(2)/200/ 3/352 dated 24 November 2002.
9.01.03 Investment in Janata Exchange Co. Inc., New York, USA (subsidiary company)
Janata Exchange Company, USA was incorporated on 10 April 2012 vide Bangladesh Bank letter # BRPD(M)204/7/2011-342 dated 28 December 2011 and
New York State Department of Financial Services Certification no. MT 103045 with 100% ownership of Janata Bank Limited having paid-up capital is USD
1,000,000.
56
Amount in Taka
Ref. Consolidated Bank
Note
2018 2017 2018 2017
9.03 Suspense Account
Sundry debtors 479,448,505 722,065,325 450,394,204 693,511,995
Advance against TA/DA 7,229,704 5,566,116 7,229,704 5,566,116
Advance against postage 92,381 78,516 92,381 78,516
Advance for expense for new branch 787,900 1,547,910 787,900 1,547,910
Gift cheque 141,110 132,710 141,110 132,710
Legal charge 3,467,151 2,332,045 3,467,151 2,332,045
Revenue stamp 267,679 149,943 267,679 149,943
Prize bond/D.S.C/B.S.P etc. 3,073,146,541 2,302,099,603 3,073,146,541 2,302,099,603
Incentive bonus 54,304,604 60,512,297 54,304,604 60,512,297
Pension bill 250,305 12,794,800 250,305 12,794,800
Airport booth 14,188,514 9,901,372 14,188,514 9,901,372
Petty cash 143,041 7,515 143,041 7,515
Foreign Remittance 963,076,558 683,204,406 963,076,558 683,204,406
4,596,543,993 3,800,392,558 4,567,489,692 3,771,839,228
9.04 Others
Sundry assets 9.04.01 9,492,180,025 7,594,167,998 9,383,994,989 7,496,150,988
Tripura Modern Bank 29,463 29,463 29,463 29,463
General blocked account 10,441,963 10,441,963 10,441,963 10,441,963
Cash remittance 519,933,000 432,405,480 519,933,000 432,405,480
Deferred tax assets 9.04.02 8,092,935,234 8,586,616,507 8,092,935,234 8,586,616,507
Advance income tax 9.04.03 26,746,910,458 25,257,142,567 26,615,351,086 25,126,971,210
Inter branch adjustment 9.04.04 417,286,966 4,216,058,822 417,286,966 4,216,058,822
45,279,717,109 46,096,862,800 45,039,972,701 45,868,674,433
57
Amount in Taka
Ref. Consolidated Bank
Note
2018 2017 2018 2017
9.04.03.01 Income Tax Paid in Advance
Year
2010 378,782,750 378,782,750 378,782,750 378,782,750
2011 341,550,863 341,550,863 331,550,863 331,550,863
2012 3,290,000,000 3,306,414,117 3,290,000,000 3,290,000,000
2013 2,907,977,539 2,907,977,539 2,887,977,539 2,887,977,539
2014 1,820,583,839 1,820,583,839 1,793,084,853 1,793,084,853
2015 1,773,331,392 1,782,744,176 1,771,399,392 1,771,399,392
2016 2,027,580,611 2,027,580,611 2,020,000,000 2,020,000,000
2017 700,000,000 700,000,000 700,000,000 700,000,000
2018 717,933,001 - 700,000,000 -
13,957,739,995 13,265,633,895 13,872,795,397 13,172,795,397
9.04.03.02 Income Tax Refundable
Year wise break up of refundable tax:
Year Assessment year
1986 1987-88 8,920,000 8,920,000 8,920,000 8,920,000
1987 1988-89 45,483,231 45,483,231 45,483,231 45,483,231
1988 1989-90 (13,541,574) (13,541,574) (13,541,574) (13,541,574)
1989 1990-91 42,105,695 42,105,695 42,105,695 42,105,695
1990 1991-92 39,903,811 39,903,811 39,903,811 39,903,811
1991 1992-93 50,174,921 50,174,921 50,174,921 50,174,921
1992 1993-94 126,325,623 126,325,623 126,325,623 126,325,623
1993 1994-95 77,281,402 77,281,402 77,281,402 77,281,402
1994 1995-96 104,426,625 104,426,625 104,426,625 104,426,625
1995 1996-97 204,925,123 204,925,123 204,925,123 204,925,123
1996 1997-98 240,322,756 240,322,756 240,322,756 240,322,756
1997 1998-99 225,181,325 225,181,325 225,181,325 225,181,325
1998 1999-2000 278,055,805 278,055,805 278,055,805 278,055,805
1999 2000-2001 380,886,212 380,886,212 380,886,212 380,886,212
2000 2001-2002 413,111,301 413,111,301 413,111,301 413,111,301
2001 2002-2003 556,745,027 556,745,027 556,745,027 556,745,027
2002 2003-2004 284,250,246 284,250,246 284,250,246 284,250,246
2003 2004-2005 166,854,247 166,854,247 166,854,247 166,854,247
3,231,411,776 3,231,411,776 3,231,411,776 3,231,411,776
9.04.04 Inter Branch Adjustment Account
Particulars Debit Credit Net
Taka Taka Balance
In 2018
CIBTA (Bangladesh) 2,208,923,935,535 2,186,395,610,080 22,528,325,455
IBFTA (Bangladesh) 1,137,819,387,484 1,192,012,184,593 (54,192,797,109)
Online inter branch transaction (OIBT) 1,197,387,616,825 1,164,985,526,878 32,402,089,947
Overseas branches 66,945,371,100 67,265,702,427 (320,331,327)
Total 4,611,076,310,944 4,610,659,023,978 417,286,966
Subsequent position of the inter branch adjustment account are summarized below:
Debit Credit
Particulars No. of unreconciled No. of unreconciled Net Balance
entries
Taka entries
Taka
In 2018
1 to 6 months 2,136 2,340,406,484 20,340 8,165,967,919 (5,825,561,435)
6 to 12 months 628 326,883,642 8,283 3,357,679,282 (3,030,795,640)
More than 12 months 1,460 193,105,934 56,101 9,101,040,696 (8,907,934,762)
Total 4,224 2,860,396,060 84,724 20,624,687,897 (17,764,291,837)
Subsequent position of the Nostro Accounts as on 31 December 2018 are as follows:
Particulars As per our book (GL) As per their book (Statement)
Debit (USD) Credit (USD) Debit (USD) Credit (USD)
Up to 3 months - - 10,735,073 2,711,828
More than 3 months but less than 6 months - - 5,007,556 716,276
More than 6 months but less than 9 months - - 2,574,187 504,628
More than 9 months but less than 12 months - - 507,640 42,599
More than 12 months - - 1,223,347 -
Total - - 20,047,803 3,975,331
58
Amount in Taka
Ref. Consolidated Bank
Note
2018 2017 2018 2017
9.06 Classification of Inter Branch Transactions
Unclassified 10,328,681,415 13,897,070,242 10,328,681,415 13,897,070,242
10,328,681,415 13,897,070,242 10,328,681,415 13,897,070,242
Classified
Doubtful 64,178,968 71,724,046 64,178,968 71,724,046
Bad/loss 127,425,504 110,911,001 127,425,504 110,911,001
191,604,472 182,635,047 191,604,472 182,635,047
10,520,285,887 14,079,705,289 10,520,285,887 14,079,705,289
Details of classified other assets shown in schedule (notes-53.00)
9.07 Provision Required for Other Assets and Inter Branch Transactions
For classified other assets:
Doubtful 201,121,500 245,643,000 201,121,500 235,069,966
Bad/Loss 2,865,640,000 2,468,456,000 2,865,640,000 2,346,296,534
Required Provision 3,066,761,500 2,714,099,000 3,066,761,500 2,581,366,500
59
Amount in Taka
Ref. Consolidated Bank
Note
2018 2017 2018 2017
11.02 Borrowing outside Bangladesh
(i) Credit Balances with NOSTRO Accounts
1 Standard Chartered Bank, Tokyo 76,255,822 - 76,255,822 -
2 Standard Chartered Bank, London - 24,349,971 - 24,349,971
3 Bank of Montreel, Canada - 1,945,128 - 1,945,128
4 Bank Intesa, SPA, Italy - 13,870,947 - 13,870,947
5 Janata Bank, Abudhabi - 76,081,468 - 76,081,468
6 Citi Bank, N.A., New York - 1,577,622,454 - 1,577,622,454
7 Standard Chartered Bank N.Y. - 1,466,111,849 - 1,466,111,849
8 Union Bank of Switzerland 37,967,994 - 37,967,994 -
114,223,816 3,159,981,817 114,223,816 3,159,981,817
(ii) Credit Balances with VOSTRO Accounts
1 Union Bank of India (Mumbai) 4,988,876 4,939,614 4,988,876 4,939,614
2 Rastriya Banijja Bank, Kathmandu (Nepal) 1,384,403 1,370,732 1,384,403 1,370,732
6,373,279 6,310,346 6,373,279 6,310,346
120,597,095 3,166,292,163 120,597,095 3,166,292,163
60
Amount in Taka
Ref. Consolidated Bank
Note
2018 2017 2018 2017
12.02 Bills Payable
Pay order issued 3,270,067,414 3,306,684,025 3,270,067,414 3,306,684,025
Pay slip issued 30,135,785 25,485,523 30,135,785 25,485,523
Demand draft payable 837,406,758 825,778,615 837,406,758 825,778,615
Telephonic transfer payable 2,392,470 10,871,501 2,392,470 10,871,501
Mobile transfer payable 466,690 5,038,105 466,690 5,038,105
Foreign money transfer 64,057 77,057 64,057 77,057
Home remittance scheme 21,200 28,475 21,200 28,475
Foreign remittance payable 153,962,872 139,262,785 153,962,872 139,262,785
FDD payable 740,402 457,900 740,402 457,900
4,295,257,648 4,313,683,986 4,295,257,648 4,313,683,986
Outside Bangladesh
Overseas 4 13,170,565,989 11,268,164,247 13,170,565,989 11,133,905,517
Sub total 4 13,170,565,989 11,268,164,247 13,170,565,989 11,133,905,517
61
Amount in Taka
Ref. Consolidated Bank
Note
2018 2017 2018 2017
12.06.01 Deposits and other accounts (division wise)
In Bangladesh
No. of Branches
Dhaka 226 319,643,664,774 364,472,703,025 319,398,589,168 320,030,359,849
Chattogram 205 211,245,954,475 137,081,243,250 211,245,954,475 186,636,293,903
Sylhet 59 16,933,015,980 16,741,754,652 16,933,015,980 16,741,754,652
Khulna 114 35,275,761,056 29,852,318,244 35,275,761,056 35,565,930,591
Barishal 42 12,711,118,227 12,881,149,833 12,711,118,227 12,881,149,833
Rajshahi 148 34,039,176,918 33,424,211,641 34,039,176,918 33,424,211,641
Rangpur 73 21,333,683,393 21,589,572,850 21,333,683,393 21,589,572,850
Mymensigh 42 11,440,585,696 22,216,334,370 11,440,585,696 11,437,599,906
Sub total 909 662,622,960,519 638,259,287,865 662,377,884,913 638,306,873,225
Outside Bangladesh
Overseas units 4 13,170,565,989 11,268,164,247 13,170,565,989 11,133,905,517
Sub total 4 13,170,565,989 11,268,164,247 13,170,565,989 11,133,905,517
Grand Total 913 675,793,526,508 649,527,452,112 675,548,450,902 649,440,778,742
i) In Bangladesh
Balance as at 1 January 34,928,756,462 20,612,804,816 34,926,171,493 20,422,960,202
Add: Transferred during the year 19,949,930,334 20,147,510,941 19,949,930,334 20,147,510,941
Transfer (to)/from 13.06.01 - (187,259,645) - -
54,878,686,796 40,573,056,112 54,876,101,827 40,570,471,143
Less: Recovered/Transferred to income account (9,421,093,008) (5,632,887,655) (9,421,093,008) (5,632,887,655)
Written off during the year (385,036,688) (11,411,995) (385,036,688) (11,411,995)
(9,806,129,696) (5,644,299,650) (9,806,129,696) (5,644,299,650)
Balance on 31 December 45,072,557,100 34,928,756,462 45,069,972,131 34,926,171,493
62
Amount in Taka
Ref. Consolidated Bank
Note
2018 2017 2018 2017
ii) Outside Bangladesh
Balance as at 1 January 25,765,522 22,005,209 25,765,522 22,005,209
Add/(less): Exchange fluctuation 270,056 1,016,365 270,056 1,016,365
26,035,578 23,021,574 26,035,578 23,021,574
Add: Transferred during the year 13,042,250 3,031,073 13,042,250 3,031,073
Less: Recovered/ Transferred to income account - - - -
Written off during the year (2,609,576) (287,125) (2,609,576) (287,125)
10,432,674 2,743,948 10,432,674 2,743,948
Balance on 31 December 36,468,252 25,765,522 36,468,252 25,765,522
Total Interest Suspense Account (i+ ii) 45,109,025,352 34,954,521,984 45,106,440,383 34,951,937,015
63
Amount in Taka
Ref. Consolidated Bank
Note
2018 2017 2018 2017
13.03.06 Provision for gratuity
In Bangladesh 122,145,395 20,899,955 119,452,352 18,876,012
Provision made during the year 43.00 618,000,000 200,000,000 618,000,000 200,000,000
Outside Bangladesh (overseas branches) 25,515,560 22,616,754 25,515,560 22,616,754
Provision at the end of the year 765,660,955 243,516,709 762,967,912 241,492,766
13.03.06.01 Provision Maintained & Required for Superannuation Fund and Gratuity
Provision maintained
Balance with trustee fund 13,469,190,209 14,280,002,169 13,469,190,209 14,280,002,169
SF Balance with JBL 13.03.05 1,879,428,411 191,428,411 1,879,428,411 191,428,411
Gratuity balance with JBL 13.03.06 765,660,955 243,516,709 762,967,912 241,492,766
Total fund held at the end of the year 16,114,279,575 14,714,947,289 16,111,586,532 14,712,923,346
Fund required for:
Superannuation fund (SF) in Bangladesh 16,026,552,908 13,866,047,494 16,026,552,908 13,866,047,494
Gratuity- outside Bangladesh 25,515,560 22,616,754 25,515,560 22,616,754
Total fund required for SF & Gratuity 16,052,068,468 13,888,664,248 16,052,068,468 13,888,664,248
Provision Excess/(Shortfall) 62,211,107 826,283,041 59,518,064 824,259,098
64
Amount in Taka
Ref. Consolidated Bank
Note
2018 2017 2018 2017
13.06 Provision for Loans and Advances
General provision (for unclassified) 13.06.01 2,565,841,983 4,924,980,100 2,106,586,803 4,493,481,993
Specific provision (for classified) 13.06.02 30,804,017,101 23,910,512,280 30,804,017,101 23,910,512,280
Total provision held 33,369,859,084 28,835,492,380 32,910,603,904 28,403,994,273
Required provision for loans and advances 32,909,700,000 28,344,600,000 32,909,700,000 28,344,600,000
Provision excess/(shortfall) 460,159,084 490,892,380 903,904 59,394,273
Outside Bangladesh
Balance at the beginning of the year 78,640,994 71,075,613 78,640,994 71,075,613
Add: Rate fluctuation 1,104,810 3,362,618 1,104,810 3,362,618
Adjustment during the year (UAE) - 631,388 - 631,388
Provision made during the year 40.00 - 3,571,375 - 3,571,375
Provision at the end of the year 79,745,804.00 78,640,994 79,745,804 78,640,994
Total provision held for unclassified loans and advances 2,565,841,983 4,924,980,100 2,106,586,803 4,493,481,993
Add: i. Recoveries of amounts previously written off 324,356,849 849,059,920 324,356,849 849,059,920
ii. Specific provision made during the year 40.00 4,493,972,033 3,472,854,574 4,493,972,033 3,472,854,574
iii. Transfer (to)/from 13.06.01 2,388,000,000 - 2,388,000,000 -
iv. Net charge to profit & loss account during the year - - - -
7,206,328,882 4,321,914,494 7,206,328,882 4,321,914,494
Provision at the end of the year 30,804,017,101 23,910,512,280 30,804,017,101 23,910,512,280
i) In Bangladesh
Balance at the beginning of the year 23,620,703,546 19,675,641,149 23,620,703,546 19,675,641,149
Less: i. Fully provided debts written off including interest waiver (295,822,309) (320,897,523) (295,822,309) (320,897,523)
23,324,881,237 19,354,743,626 23,324,881,237 19,354,743,626
Add: i. Recoveries of amounts previously written off 324,356,849 849,059,920 324,356,849 849,059,920
ii. Specific provision for the year : 4,141,000,000 3,416,900,000 4,141,000,000 3,416,900,000
iii. Transfer (to)/from 13.06.01 2,388,000,000 - 2,388,000,000 -
6,853,356,849 4,265,959,920 6,853,356,849 4,265,959,920
Provision held in Bangladesh at the end of the year 30,178,238,086 23,620,703,546 30,178,238,086 23,620,703,546
ii) Outside Bangladesh
Balance at the beginning of the year 289,808,734 238,600,766 289,808,734 238,600,766
Add: Exchange fluctuation 3,651,312 12,270,842 3,651,312 12,270,842
293,460,046 250,871,608 293,460,046 250,871,608
Less: Fully provided debts written off (20,653,064) (17,017,448) (20,653,064) (17,017,448)
272,806,982 233,854,160 272,806,982 233,854,160
Add: Recoveries of amounts previously written off - - - -
Specific provision for the year for Bad/Loss 352,972,033 55,954,574 352,972,033 55,954,574
352,972,033 55,954,574 352,972,033 55,954,574
Provision held outside Bangladesh at the end of the year 625,779,015 289,808,734 625,779,015 289,808,734
Total provision maintained for classified loans and advances (i+ii) 30,804,017,101 23,910,512,280 30,804,017,101 23,910,512,280
65
Amount in Taka
Ref. Consolidated Bank
Note
2018 2017 2018 2017
13.08 Provision for Corporate Social Responsibility (CSR)
Balance at the beginning of the year 100,000,000 100,000,000 100,000,000 100,000,000
Provision made during the year 45.00 9,388,640 7,956,546 9,388,640 7,956,546
Less: Paid during this year (9,388,640) (7,956,546) (9,388,640) (7,956,546)
Provision at the end of the year 100,000,000 100,000,000 100,000,000 100,000,000
Summarized statement of unreconciled entries of Nostro Accounts as at 31 December 2018 are given below:
As per our book (GL) As per their book (Statement)
Particulars
Debit (USD) Credit (USD) Debit (USD) Credit (USD)
Up to 3 months - 50,516 97,136,079 99,323,271
More than 3 months but less than 6 months - 131 5,243,386 1,592,134
More than 6 months but less than 9 months - - 12,454,371 2,343,989
More than 9 months but less than 12 months - - 507,640 49,264
More than 12 months - - 1,223,347 -
Total - 50,647 116,564,823 103,308,658
66
Amount in Taka
Ref. Consolidated Bank
Note
2018 2017 2018 2017
13.12.02 Provision for Risk Coverage Fund (computer)
The paid-up capital of the Bank is Tk. 23,140,000,000 divided into 231,400,000 ordinary shares of Tk. 100/- each. 191,400,000 share certificates have
been issued in the name of the Government including Chairman and 12 Directors (3 Ex-Directors) of the Bank. Details of share capital are as under:
14.03 Name of Shareholders
As at 31 December 2018
Name of shareholders
No. of Shares Taka
1. Government of the People's Republic of Bangladesh
represented by Finance Secretary, Ministry of Finance 231,399,988 23,139,998,800
67
Amount in Taka
Ref. Consolidated Bank
Note
2018 2017 2018 2017
14.06.01 Tier-1 Capital
Common Equity Tier-1 (CET-1) 14.06.01.01 35,352,114,537 37,239,645,798 35,381,524,529 37,243,488,680
Additional Tier-1 (AT-1) 14.06.01.02 - - - -
35,352,114,537 37,239,645,798 35,381,524,529 37,243,488,680
* Tier-2 capital can be maximum up to 4% of the total RWA or 88.89% of CET-1, whichever is higher.
Total assets (including Off-balance sheet amount) 962,139,281,537 928,027,889,510 960,790,700,027 926,870,324,762
Risk weighted assets 14.06.03.01 542,344,347,500 447,321,675,000 538,230,537,500 443,419,025,000
Required capital (10% of risk weighted assets) 54,234,434,750 44,732,167,500 53,823,053,750 44,341,902,500
68
Amount in Taka
Ref. Consolidated Bank
Note
2018 2017 2018 2017
20.00 Revaluation Reserve for Held for Trading (HFT)
Opening balance 1,383,657,394 2,003,451,051 1,383,657,394 2,003,451,051
Revaluation gain/(loss) (79,988,727) (1,392,061,773) (79,988,727) (1,392,061,773)
Unrealized during the year 1,422,222,563 314,159,761 1,422,222,563 314,159,761
Add/(less): Adjustment to deferred tax liability (476,734,517) 458,108,355 (476,734,517) 458,108,355
Closing balance 2,249,156,713 1,383,657,394 2,249,156,713 1,383,657,394
* Party wise off balance sheet exposure (non funded loan concentration) is given in note no. 7.06.01
69
Amount in Taka
Ref. Consolidated Bank
Note
2018 2017 2018 2017
70
Amount in Taka
Ref.
Consolidated Bank
Note
2018 2017 2018 2017
A. Income:
Interest, discount and similar income 43,690,241,460 42,603,277,281 43,639,987,777 42,547,921,361
Dividend income ordinary shares 515,517,056 598,646,318 522,599,243 539,435,510
Dividend income preference share - 23,660,490 - 23,660,490
Fees, commission and brokerage 862,595,603 961,758,231 827,065,410 920,124,101
Gain less losses arirising from dealing securities 2,037,264,013 3,991,260,828 2,036,324,842 3,990,705,023
Gain less losses arising from investment securities 1,756,224,573 2,579,995,529 1,676,703,208 2,449,416,397
Income from non-banking assets - - - -
Other operating income 2,001,850,573 1,998,974,808 2,002,163,919 2,000,706,200
Profit less losses on interest rate changes - - - -
50,863,693,278 52,757,573,485 50,704,844,399 52,471,969,082
B. Expenses
Interest, fees and commission 26,973,734,985 27,095,656,917 26,972,085,716 27,093,672,662
Administrative expenses 11,486,515,509 11,818,969,656 11,387,596,074 11,729,852,412
Other operating expenses 1,595,549,900 1,465,132,080 1,570,006,982 1,435,710,814
Depreciation on banking assets including amortization 992,080,749 849,219,582 986,194,184 843,255,279
41,047,881,143 41,228,978,235 40,915,882,956 41,102,491,167
71
Amount in Taka
Ref.
Consolidated Bank
Note
2018 2017 2018 2017
26.01.01 Interest Paid to Various Deposit Scheme
Interest paid on DPS 12,605,635 22,573,580 12,605,635 22,573,580
Interest paid on JBSPS 2,482,304 3,146,542 2,482,304 3,146,542
Interest paid on JBDS 1,039,602,410 878,773,213 1,039,602,410 878,773,213
Interest paid on MDS 54,257,633 40,406,686 54,257,633 40,406,686
Interest paid on EDS 40,155,576 35,491,013 40,155,576 35,491,013
Interest paid on JBMSS 156,513,893 123,392,155 156,513,893 123,392,155
Interest paid on JBSDS 355,977,044 295,937,721 355,977,044 295,937,721
Interest paid on RSS 13,027,954 18,391,483 13,027,954 18,391,483
Interest paid on JBLRSS 59,861,412 65,751,585 59,861,412 65,751,585
Interest paid on JBMAPro. 754,838,831 1,303,925,949 754,838,831 1,303,925,949
Interest paid on JBDBS 2,824,891,898 3,535,739,987 2,824,891,898 3,535,739,987
Interest paid on JBMBS 57,752,882 158,188,682 57,752,882 158,188,682
Interest paid on NRPS 932,240 117,777 932,240 117,777
Interest paid on JDS 13,620,232 1,700,726 13,620,232 1,700,726
5,386,519,944 6,483,537,099 5,386,519,944 6,483,537,099
Exchange Gain
Commmission LC -Foreign 793,890,426 963,163,830 793,890,426 963,163,830
Commmission LG -Foreign 10,663,145 38,205,450 10,663,145 38,205,450
Exchange-Pound 59,856,635 27,656,963 59,856,635 27,656,963
Exchange-Dollar 249,588,114 796,445,306 248,648,943 795,889,501
Exchange-Other Currencies 428,125,696 2,083,365,772 428,125,696 2,083,365,772
Commission Miscellaneous 96,071,235 100,192,485 96,071,235 100,192,485
Commission I.C.A LCs 19,979,617 25,049,270 19,979,617 25,049,270
Exchange Income (WES) 11,963,664 4,651,799 11,963,664 4,651,799
Exchange Earning (General) 505,965,553 - 505,965,553 -
2,176,104,085 4,038,730,875 2,175,164,914 4,038,175,070
Exchange Loss (138,840,072) (47,470,047) (138,840,072) (47,470,047)
2,037,264,013 3,991,260,828 2,036,324,842 3,990,705,023
72
Amount in Taka
Ref.
Consolidated Bank
Note
2018 2017 2018 2017
29.00 Other Operating Income
Rent 24,955,657 10,260,846 24,955,657 10,260,846
Computer - 976 - 976
Incidental charge recoveries 4,384,842 11,461,003 4,384,842 11,461,003
Miscellaneous earnings 745,848,691 771,849,933 746,162,037 773,581,325
Postage recoveries 15,512,555 8,037,749 15,512,555 8,037,749
BACH charge 1,806,509 1,219,914 1,806,509 1,219,914
Trunk call & SWIFT charges 10,125,592 17,265,560 10,125,592 17,265,560
Write off loan recovery 16,000,204 207,634,822 16,000,204 207,634,822
Service charge on rural credit 9,934,373 4,166,129 9,934,373 4,166,129
Account maintenance fee 964,767,010 921,586,164 964,767,010 921,586,164
Rebate 15,404,434 19,820,033 15,404,434 19,820,033
NID verification charge 5,508,224 718,925 5,508,224 718,925
Card closing fee 2,000 250 2,000 250
Pin reissue fee 1,041,627 1,253,996 1,041,627 1,253,996
SMS notification charge 185,431,973 22,408,278 185,431,973 22,408,278
Card maintenance fee 1,126,882 1,256,773 1,126,882 1,256,773
Revaluation of investment, gold, silver etc. - 33,457 - 33,457
2,001,850,573 1,998,974,808 2,002,163,919 2,000,706,200
73
Amount in Taka
Ref.
Consolidated Bank
Note
2018 2017 2018 2017
36.00 Directors' Fees
Total fees paid for attending board meeting 3,737,666 4,090,944 3,040,000 3,192,000
Total fees paid for executive committee meeting 280,000 280,000 280,000 280,000
Total fees for attending audit committee meeting 712,000 608,000 712,000 608,000
Total fees paid for attending risk management committee meeting 392,000 264,000 392,000 264,000
Honorarium for Chairman 301,071 360,000 301,071 360,000
5,422,737 5,602,944 4,725,071 4,704,000
Note: Fee of the Chairman & Directors is Taka 8,000 per meeting as per BRPD Circular Letter No. 11 Dated 04 October 2015.
Monthly honorarium for chairman is maximum 30,000 Taka as per MoF letter no. 53.00.0000.321.45.002.15-221 Dated 22 September 2016.
No other financial benefits are extended to Board of Directors [as per section 18(1) of the Banking Companies Act (Amendment) 2013] excluding above fees.
i) Depreciation:
Furniture & fixtures 101,978,954 84,381,352 100,141,942 81,596,471
Vehicles 50,808,690 29,924,907 50,212,694 29,179,911
Machinery & equipment's 47,554,179 41,814,079 47,315,390 41,567,934
Computer hardware 335,995,372 297,430,324 335,659,384 297,073,868
Property 45,938,496 39,654,638 45,009,000 39,484,555
582,275,691 493,205,300 578,338,410 488,902,739
ii) Amortization
Computer software 124,460,175 122,845,975 124,383,858 122,761,179
Organizational Cost, JEC, USA 369,824 301,615 - -
124,829,999 123,147,590 124,383,858 122,761,179
74
Amount in Taka
Ref.
Consolidated Bank
Note
2018 2017 2018 2017
41.00 Provision for Off-balance Sheet Exposures 13.07
46.02.01 Deferred Tax Presentation in the Statement of Financial Position (Balance Sheet)
Recognition/ Recognition/
realization in current realization in last
year year
A. Taxable/(Deductible) temporary differences
Property and equipment (36,287,956) (4,768,629) (272,159,272) (170,766,478)
Provision for superannuation fund (670,414,290) - (1,879,428,411) (191,428,411)
Provision for gratuity fund (202,552,739) (14,428,693) (762,967,912) (241,492,766)
Provision for leave encashment (93,787,239) (12,051,127) (700,019,573) (438,166,095)
Provision for incentive bonus 157,674,619 1,772,429 (1,401,457,036) (1,690,017,491)
(5,016,032,204) (2,731,871,241)
40.00% 42.50%
Deferred tax (assets)/liabilities at the end of the period (845,367,605) (29,476,020) (2,006,412,882) (1,161,045,277)
75
Amount in Taka
Ref.
Consolidated Bank
Note
2018 2017 2018 2017
D. Deferred tax (assets)/liabilities at the end of the period (A+B+C) (454,719,385) (506,627,345) 344,230,256 798,949,640
E. Deferred tax (assets)/liabilities at the end of the period except deductible temporay difference on Revaluaation Reserve for Buildings
(426,921,983) (493,340,294) 372,027,658 812,236,691
* According to para 74(b) of IAS-12 and BRPD Circular No.-11 dated 12 December 2011, deferred tax assets and deferred tax liabilities has been rearranged.
Provision for classified loans and advances 493,681,273 (123,063,693) (20,232,338,086) (20,203,803,546)
40.00% 42.50%
Deferred tax (assets)/liabilities at the end of the period 493,681,273 (123,063,693) (8,598,743,687) (8,586,616,507)
191,400,000 Ordinary Shares outstanding for 365 days 191,400,000 191,400,000 191,400,000 191,400,000
40,000,000 Ordinary Shares outstanding for 187 days 20,493,151 - 20,493,151 -
211,893,151 191,400,000 211,893,151 191,400,000
Janata Bank Limited issued 40,000,000 as right share in favor of Government against receiving Taka 4,000,000,000 from Government on 30 June 2018.
The Board of Directors in its 569th meeting dated 29 April 2019 decided to recommend a payment of Taka 10,000,000 as cash dividend for the year 2018.
Except the fact stated above, there is no material event after the reporting date that are not adjusting events came to management attention which may be
needful for the stakeholders.
76
52.00 Schedule of shares purchased from primary and secondary market as at 31 December 2018
Market Price
Cost per
SL Name of Company/ Institution No. of share Total Cost Price (per share) as on Total Market Price
unit
31 Dec 2018
Bank
1 AB Bank 1,277,913 51.16 65,377,832 12.00 15,334,956
2 Bank Asia 3,118,424 19.28 60,131,452 17.70 55,196,105
3 BRAC Bank 4,779,712 20.02 95,709,700 72.70 347,485,062
4 Dhaka Bank Ltd 539,469 16.91 9,122,389 14.20 7,660,460
5 Dutch Bangla Bank 77,500 99.14 7,683,085 144.40 11,191,000
6 Eastern Bank Ltd 4,076,799 2.99 12,190,855 36.00 146,764,764
7 Exim Bank Ltd 80,448 6.77 545,025 11.80 949,286
8 ICB Islamic Bank 5,541,800 10.05 55,689,671 4.80 26,600,640
9 IFIC 804,527 20.19 16,239,608 10.90 8,769,344
10 Islamic Bank 304,053 30.32 9,219,529 24.20 7,358,083
11 Jamuna Bank 691,748 11.09 7,674,244 17.60 12,174,764
12 Mercantile Bank 430,500 15.00 6,456,916 18.00 7,749,000
13 MTB 925,447 15.56 14,395,525 35.10 32,483,190
14 NBL 686,907 10.65 7,314,800 9.30 6,388,235
15 NCC 999,955 15.45 15,452,521 15.90 15,899,285
16 One Bank Ltd 194,906 8.97 1,748,691 15.00 2,923,590
17 Prime Bank 451,441 34.73 15,676,954 18.10 8,171,082
18 Pubali Bank 404,688 31.72 12,838,326 26.00 10,521,888
19 Shajalal Islami Bank Ltd. 566,771 15.93 9,031,073 27.60 15,642,880
20 Social Islamic Bank 80,850 22.49 1,818,570 15.40 1,245,090
21 South East Bank 2,685,353 30.51 81,918,880 15.60 41,891,507
22 Standard Bank 805,677 19.77 15,928,698 10.90 8,781,879
23 The City Bank 1,160,363 29.17 33,847,799 30.20 35,042,963
24 Trust Bank 1,692,865 25.16 42,600,355 32.50 55,018,113
25 UCBL 701,930 35.86 25,174,480 17.60 12,353,967
26 Uttara Bank Ltd 754,900 34.39 25,958,008 28.50 21,514,650
27 IBBL Bond 116,010 954.55 110,737,578 942.00 109,281,420
Total 760,482,564 1,024,393,203
NBFI
1 DBH 668,247 81.24 54,288,404 129.40 86,471,162
2 IDLC 103,950 37.30 3,877,697 69.70 7,245,315
3 ICB 46,619,333 21.16 986,652,700 104.50 3,885,067,599
4 ILFSL 283,904 51.31 14,568,334 13.70 3,889,485
5 Peoples Leasing 345,368 107.01 36,957,162 5.60 1,934,061
6 Phonix Finance 147,027 68.38 10,053,380 32.60 4,793,080
7 Premier Leasing 409,405 27.18 11,126,182 8.90 3,643,705
8 Prime Finance 364,214 118.15 43,032,443 9.50 3,460,033
Total 1,160,556,302 3,996,504,440
* Cost price of ICB share is deducted from actual market price.
* For the purpose of calculating provision for investment the price of ICB has not considered.
Mutual Funds
1 1st Janata Bank M.F 72,480,836 6.90 500,000,000 4.40 318,915,678
2 1st Bangladesh Fixed Income Fund 194,036,753 7.22 1,400,000,000 4.30 834,358,037
3 EBL 1st MF 75,993 13.16 1,000,123 7.60 577,547
4 Eastern Bank Ltd NRB M F 14,925,335 6.69 99,830,000 4.60 68,656,541
5 ICB 2nd NRB 1,067,500 12.78 13,640,617 9.90 10,568,250
6 ICB Sonali Mf 350,000 6.37 2,228,708 7.00 2,450,000
7 IFIC 1st MF 227,707 6.59 1,500,000 4.20 956,369
8 L R Global M F 5,184,672 9.64 50,000,000 6.90 35,774,237
9 PHP 1st MF 704,730 7.09 4,994,915 4.40 3,100,812
10 Popular Life 1st M.F 747,719 6.69 5,000,000 4.20 3,140,420
11 CAPM BDBL MF 01 3,000,000 10.00 30,000,000 6.70 20,100,000
12 Trust Bank 1st MF 758,963 6.59 5,000,000 4.40 3,339,437
13 Vanguard AML RB MF 25,000,000 10.00 250,000,000 8.90 222,500,000
14 Vanguard BD Finance MF 25,000,000 10.00 250,000,000 6.90 172,500,000
15 Bangladesh Fund 21,300,000 100.00 2,130,000,000 95.00 2,023,500,000
Total 4,743,194,363 3,720,437,328
77
Market Price
Cost per
SL Name of Company/ Institution No. of share Total Cost Price (per share) as on Total Market Price
unit
31 Dec 2018
Pharmaceuticals
1 Active Fine Chemical Ltd 211,028 7.12 1,501,957 28.20 5,950,990
2 Beximco Pharmaceuticals Ltd 2,801,935 58.23 163,154,114 79.10 221,633,058
3 Renata 72,755 231.17 16,818,625 1,141.60 83,057,108
4 Square Pharma 554,000 63.31 35,073,740 254.20 140,826,800
Total 216,548,436 451,467,956
Engineering
1 Aftab automobiles Ltd 987,789 72.75 71,866,444 45.90 45,339,515
2 BD Lamps 82,385 194.58 16,030,877 197.00 16,229,845
3 BSRM Steel 204,338 84.87 17,341,480 59.90 12,239,845
4 S Alam Cr Steels 253,633 49.92 12,660,296 28.20 7,152,451
Total 117,899,097 80,961,656
Cement
1 lafargeHolcim BD Ltd 500,500 33.80 16,918,430 43.50 21,771,750
Total 16,918,430 21,771,750
Textiles
1 Anlima yarn 232,727 17.39 4,046,301 39.80 9,262,535
2 Apex Weaving and Finishing Mil 44,890 8.91 400,000 5.00 224,450
3 Al Haj Textile 160,464 43.91 7,046,590 87.90 14,104,785
4 Envoy Textile 511,919 40.51 20,739,484 36.30 18,582,660
5 Malek Spinnng Mills 512,480 20.43 10,468,087 17.20 8,814,656
6 Square Textile 29 - - 47.10 1,366
Total 42,700,462 50,990,452
Tannery
1 Apex Footwear Ltd 65,700 348.32 22,884,725 295.50 19,414,350
Total 22,884,725 19,414,350
Insurance
1 Delta Life 36,000 33.22 1,195,873 109.80 3,952,800
2 Fareast life 184,713 103.82 19,177,479 63.20 11,673,862
3 Green Delta life 298,556 101.20 30,212,714 65.00 19,406,140
4 National Life Insurance 370,849 47.82 17,734,143 216.20 80,177,553
5 Nitol Ins 146,932 38.38 5,639,968 28.00 4,114,096
6 Pragati Life Ins. 27,929 117.11 3,270,805 114.70 3,203,456
7 Progressive Life 87,974 152.58 13,422,808 65.20 5,735,905
8 Standard Insurance 47,313 22.56 1,067,412 37.20 1,760,044
Total 91,721,202 130,023,856
Tele communication
1 GP 200,000 233.16 46,632,625 367.30 73,460,000
2 BSCCL 131,885 147.96 19,513,169 93.50 12,331,248
Total 66,145,794 85,791,248
78
Market Price
Cost per
SL Name of Company/ Institution No. of share Total Cost Price (per share) as on Total Market Price
unit
31 Dec 2018
Others
1 Beximco 317,565 71.67 22,759,714 23.50 7,462,778
2 National Tea Co Ltd 44,220 562.89 24,890,806 775.40 34,288,188
3 Summit Alliance Port Ltd 561,987 107.53 60,433,269 25.30 14,218,271
Total 108,083,789 55,969,237
Paper Share
3 BATBC 2,500 84.20 210,491 3,541.70 8,854,250
4 Bata Shoes 200 109.41 21,882 1,116.40 223,280
5 Monno Ceramic Industries Ltd 15,015 39.23 589,041 245.60 3,687,684
6 Square Pharmaceuticals Ltd 5,832 10.00 58,320 254.20 1,482,494
Total 879,734 14,247,708
Grand Total (Quoted Share) 7,834,425,150 10,455,931,268
Market Price
Cost per
SL Name of Company/ Institute No. of share Total Cost Price (per share) as on Total Market Price
unit
31 Dec 2018
1 Commerce Bank Ltd 1,349,964 100.00 134,996,400 100.00 134,996,400
2 IIDFC 11,726,576 5.73 67,168,898 51.65 67,168,898
Specialised Jute yarn and towain Co
3 33,790 9.75 329,453 9.75 329,453
Ltd
4 Paper Converting and Packeging Ltd 2,956 98.75 291,905 98.75 291,905
5 IFIC 73,500 106.19 7,804,699 106.19 7,804,699
6 Central Depository Bangladesh Ltd 8,567,705 2.75 23,541,640 6.11 23,541,640
7 Swan Textile Mills Ltd 1,000 97.50 97,500 97.50 97,500
8 Fiber shine 1,990,000 10.00 19,900,000 10.00 19,900,000
9 Rupsa fish & allied company ltd 1,111,000 18.00 19,998,000 18.00 19,998,000
10 Farmer's Bank Ltd 165,000,000 10.00 1,650,000,000 10.00 1,650,000,000
11 Azadi Printers Ltd 756 100.00 75,600 100.00 75,600
Total 1,924,204,095 1,924,204,095
Market Price
Cost per
SL Name of Company/ Institute No of share Total Cost Price (per share) as on Total Market Price
unit
31 Dec 2018
1 Orion Infrastructure Limited 100,000,000 10.00 1,000,000,000 10.00 1,000,000,000
Total 1,000,000,000 1,000,000,000
Market Price
Cost per
SL Name of Company/ Institute No of share Total Cost Price (per share) as on Total Market Price
unit
31 Dec 2018
1 Orion Infrastructure Limited 300,000,000 10.00 3,000,000,000 10.00 3,000,000,000
Total 3,000,000,000 3,000,000,000
79
53(i) Consolidated Schedule of fixed assets of Janata Bank Limited as at 31 December 2017
A. Cost
(Figure in Thousand unless stated otherwise)
COST DEPRECIATION
Written down Written down
Exchange Opening Balance Addition during Exchange Opening Balance Adjustment
Name of Assets Opening Balance as Sales/ Transfer/ Balance as on Opening Balance Charged during Balance as on Value as on Value as on
Sl. No. Fluctuatio as on 01.01.18 the year Rate (%) Fluctuatio as on 01.01.18 during the
on 01.01.18 Adjustment 31.12.18 as on 01.01.18 the year 31.12.18 31.12.18 31.12.17
n (Restated) n (Restated) year
1 2 3 4 5=(2+3-4) 6 7 8 9 10=(7+8-9) 11 12
80
B. Revaluation
(Amount in Taka '000 )
VALUATION DEPRECIATION
Written down Written down
Exchange Opening Balance Exchange Opening Balance Adjustment
Name of Assets Opening Balance as Revaluation Sales/ Transfer/ Balance as on Opening Balance Charged during Balance as on Value as on Value as on
Sl. No. Fluctuatio as on 01.01.18 Rate (%) Fluctuatio as on 01.01.18 during the
on 01.01.18 during the year Adjustment 31.12.18 as on 01.01.18 the year 31.12.18 31.12.18 31.12.17
n (Restated) n (Restated) year
1 2 3 4 5=(2+3-4) 6 7 8 9 10=(7+8-9) 11 12
Total (A+B) 14,635,998 (569) 14,635,429 709,728 140,437 15,204,720 4,242,222 - 4,242,233 707,104 74,634 4,874,703 10,330,017 10,393,776
81
53(ii) Schedule of fixed assets of Janata Bank Limited as at 31 December 2018
A. Cost
(Figure in Thousand unless stated otherwise)
COST DEPRECIATION
Written down Written down
Opening Addition Sales/ Opening Charged Adjustment
Sl. Name of Assets Balance as on Balance as Value as on Value as on
Balance as on during the Transfer/ Rate (%) Balance as on during the during the
No. 31.12.18 on 31.12.18 31.12.18 31.12.17
01.01.18 year Adjustment 01.01.18 year year
1 2 3 4 5=(2+3-4) 6 7 8 9 10=(7+8-9) 11 12
82
B. Revaluation
(Amount in Taka '000 )
VALUATION DEPRECIATION
Written down Written down
Opening Revaluation Sales/ Opening Charged Adjustment
Sl. Name of Assets Balance as on Balance as Value as on Value as on
Balance as on during the Transfer/ Rate (%) Balance as on during the during the
No. 31.12.18 on 31.12.18 31.12.18 31.12.17
01.01.18 year Adjustment 01.01.18 year year
1 2 3 4 5=(2+3-4) 6 7 8 9 10=(7+8-9) 11 12
Total (A+B) 14,525,347 708,906 112,347 15,121,906 4,216,722 702,721 74,581 4,844,862 10,277,044 10,308,625
83
54.00 Schedule of classified other assets of Janata Bank Limited as at 31 December 2018
2 Sundry Assets
Head office 28,327,120 28,264,974 - 62,146 62,146
Branches (In Bangladesh) 7,485,394 5,810,010 347,221 1,328,163 1,501,774
Branches (Overseas) 108,521 102,306 2,658 3,557 4,886
Sub-total 35,921,035 34,177,290 349,879 1,393,866 1,568,806
3 Others
Head Office 20,166,018 19,116,111 - 1,049,907 1,049,907
Branches (In Bangladesh) 627,264 623,297 - 3,967 3,967
Overseas Branches (UAE) 4,073 4,073 - - -
Sub-total 20,797,355 19,743,481 - 1,053,874 1,053,873
Total 61,285,880 58,017,997 402,243 2,865,640 3,066,762
84
55.00 Segment reporting
For the purpose of segment reporting as per Bangladesh Financial Reporting Standards (BFRS) 8 'Operating Segments', the following segment relating to revenue,
expenses, assets and liabilities have been identified and shown as follows:
* Loans & Advances
* Treasury
* Overseas Branches (UAE)
* JCIL, Dhaka
* JEC, Italy
* JEC, USA
Operating segments
Amount in million taka
Janata Bank Limited Subsidiaries of JBL
Overseas
Particulars Loans & JCIL, JEC, JEC, Total
Treasury Branches, Other Total
advances Dhaka Italy USA
UAE
Interest income 33,920.01 - 568.65 - 34,488.66 49.88 0.37 - 34,538.91
Interest expenses (26,748.07) (209.25) (14.77) - (26,972.09) 0.01 (1.65) - (26,973.73)
Net interest income 7,171.94 (209.25) 553.88 - 7,516.57 49.89 (1.28) - 7,565.18
Investment income - 11,350.63 - - 11,350.63 72.44 - - 11,423.07
Commission & brokerage - 811.83 15.24 - 827.07 16.42 17.95 1.16 862.60
Foreign exchange income - 2,012.49 23.83 - 2,036.32 - - 0.94 2,037.26
Other operating income - - 199.37 1,802.79 2,002.16 0.03 (0.34) - 2,001.85
Total operating income 7,171.94 13,965.70 792.32 1,802.79 23,732.75 138.78 16.33 2.10 23,889.96
Total operating expenses - - (324.63) (13,619.17) (13,943.80) (92.34) (63.09) (24.97) (14,074.15)
Profit before provision 7,171.94 13,965.70 467.69 (11,816.38) 9,788.95 46.44 (46.76) (22.87) 9,815.81
Rate of operating income 73.27% 142.67% 4.78% (120.71%) 99.73% 0.47% (0.48%) (0.23%) 100.00%
Loans & advances 529,451.01 - 4,256.15 - 533,707.16 2,452 - - 536,159.54
Investment - 166,783.79 - - 166,783.79 2,524 28.65 - 169,335.95
Number of employees and remuneration thereof as per the schedule XI of the Companies Act 1994 the number of employees (including contractual employees)
engaged for the whole year or part thereof who received a total remuneration of Taka 36,000 per annum or Taka 3,000 per month were 11,849 at the end of 2018 as
against 12,391 in 2017.
85
57.00 Business Unit-wise Performance as on 31 December 2018
2 Janata Bhaban Corporate 20,145.10 129,263.84 978.06 74,918.72 5,631.40 12,191.40 150.50 1,890.80 0.50
3 Dhaka north 131,205.60 37,953.39 2,021.19 19,193.22 2,694.60 11,374.10 3,590.10 353.20 40.90
4 Dhaka south 106,353.90 54,010.44 744.30 15,567.98 10,877.20 14,335.50 12,380.00 302.70 50.20
5 Chattogram 160,872.20 81,884.43 4,152.70 4,819.61 47,252.70 4,652.40 3,717.20 43.40 7.10
6 Sylhet 16,933.00 3,312.28 218.60 114.07 309.20 24.10 5,075.40 17.00 4.30
7 Khulna 29,618.40 23,135.80 341.10 5,768.20 3,875.60 11,214.60 4,176.30 252.10 57.10
10 Rangpur 21,333.70 9,782.16 217.80 908.64 117.10 35.50 1,530.30 271.10 51.30
11 Cumilla 30,477.20 4,698.13 455.40 157.44 3.70 525.40 11,047.80 20.60 0.70
86
59.00 Highlights on the Overall Activities of the Bank
Figure in BDT
(unless stated otherwise)
SL. Particular 2018 2017
92
58.00 Related parties
The bank provides banking service to the different ministries and corporation in the form of advances, letter
of credit, bank guarantee etc. but the bank had no transactions with the directors of the Bank as a related
party.
(i) Directors of Janata Bank Limited and interest in the bank (as at 31 December 2018)
Date of
Sl. Number of
Name Present Address Appointment/
No. shares
Reappointment
Anushua
Apartment # N-5, House # 59,
02. Khondker Sabera Islam 21/01/2016 01
Road # 25, Block # A,
Banani, Dhaka-1213
House # 12, Road # 13
03. Mr. Md. Mofazzal Husain Sector # 14 21/01/2016 01
Uttara, Dhaka-1230
Apartment # 3B,
Mr. Masih Malik Chowdhury,
04. House # 32, Road # 9-A, 11/05/2016 01
FCS FCA
Dhanmondi, Dhaka-1209
Flat # G-1,
05. Mr. A. K. Fazlul Ahad Nagar Shanti Nibash, 11/05/2016 01
153/6 Shantinagar, Dhaka-1217
30/12/2015
Mr. Manik Chandra Dey House # 56, Satish Sarker Road,
11. to 01
(Ex-Director) Gandaria, Dhaka-1204
03/10/2018
Arunodoy 11/07/2017
Mr. Md. Abdul Haque
12. House # Uma-06, Block # B to 01
(Ex-Director)
Khilgaon, Dhaka 1219 03/10/2018
87
(ii) Particulars of Directors and their interest in other entities (as at 31 December 2018)
Vice
06. Mrs. Selima Ahmed Director 2 Nitol-Niloy Group
Chairperson
Governing
3 BEZA and BIDA Body
Member
Ex-
The Government of the People’s
07. Mr. Mohammad Abul Kashem Director 1 Additional
Republic of Bangladesh
Secretary
Additional
1 Finance Division, Ministry of Finance
Secretary
08. Dr. Md. Jafar Uddin Director 2 Bangladesh Commerce Bank Ltd. Director
10 Mr. Md. Abdus Salam Azad Director 1 Janata Capital and Investment Limited Director
88
(iii) Particular of Directors in the Audit Committee (as at 31 December 2018)
(iv) Formulation of effective audit action plan for strengthening bank’s internal control and its
implementation process is mentioned below:
SL Particulars Comments
A) Activities Related to Internal Control
Reviewed Audit Plan 2018 and recommended it before the Board of Directors for
01.
final approval
Reviewed inter control and compliance system clause of Memorandum of
02.
Understanding(MOU)
03. Reviewed minutes of recovery meetings held in larger branches in Dhaka
04. Reviewed inter branch reconciliation report of Janata Bank Limited regularly
Reviewed and directed Cash Transaction Report(CTR) related clause in
05.
Memorandum of Understanding
Approved Self-Assessment of Anti-Fraud & Internal Controls related time bound
06.
action plan
07. Reviewed report on Self-Assessment of Anti-Fraud & Internal Controls
08. Reviewed action plan related to computerization status of JBL branches
Reviewed compliance status of the commercial audit report, comprehensive
09. inspection report conducted by Bangladesh Bank and statutory audit report and
advised the management to ensure full compliance on quarterly rest
Reviewed the report submitted by the Department of Bank Inspection-2, Bangladesh
10.
Bank on Internal Control and Compliance Policy (ICC Policy)
Discussed and reviewed the compliance report of internal audit conducted on
11.
difference branches on quarterly basis
12. Reviewed the decisions taken by the MANCOM
13. Discussed and reviewed External Credit Assessment Institution(ECAI) Nomination
Reviewed the recovery status of classified loans as well as write off loans and
14.
providing necessary guidelines to the management to reduce the NPLs
Reviewed the reconciliation performance of inter branch transaction accounts on
15.
quarterly basis and advised the management to keep it regular
B) Activities Related to Financial Reporting
01. Reviewed and recommended the Half Yearly unaudited financial statements of JBL
02. Reviewed the report on coverage of operating loss incurred by JEC Italy
Reviewed the annual financial statements and examined whether these are complete
03. and consistent with applicable accounting and reporting standards (IASs &IFRSs) set
by respective governing bodies and regulatory authorities
Held meetings with the management and statutory auditors to review annual financial
04.
statements before finalization
Checked whether the financial statements reflect the complete and concrete
information and determine whether the statements are prepared according to existing
05.
rules & regulations and standards enforced in the country and as per relevant
prescribed accounting standards set by Bangladesh Bank
89
SL Particulars Comments
06. Reviewed and made recommendation on the Depreciation Policy of Fixed Assets
C) Activities Related to Internal Audit
01. Reviewed suit case filed by JBL and writ petition against JBL
02. Reviewed report on mortgage property and auction sale for adjustment of loan
Reviewed Annual Audit Plan 2018 and Approved Annual Audit Plan for the year
03.
2019 by the Internal Audit Division
04. Reviewed and amended action plan related to Concurrent Audit Monitoring Cell
Discussed the internal audit report on different branches and instructed management
05.
to take necessary disciplinary action against fraud forgery committed employees
Reviewed responsibility fixation report of internal audit for irregularities in routine
06. works in different branches and recommended for taking necessary disciplinary
action against responsible persons
Reviewed the special audit reports on most important branches and recommended for
07.
taking necessary disciplinary action against responsible persons
Reviewed the special audit and inspection report on irregularities taken place in
08. Janata Exchange Company Srl. Italy and recommended for board approval for taking
necessary disciplinary action against responsible persons
Audit Committee monitored whether Internal Audit is working independent of the
09.
management
Reviewed the activities of the Internal Audit and the organizational structure to
10.
ensure that no unjustified restriction or limitation hinders the Internal Audit Process
11. Examined the efficiency and effectiveness of Internal Audit function
Examined whether the findings and recommendations made by the internal auditors
12.
are duly considered by the management
D) Activities Related to External Audit
The Committee reviewed selection of 60 branches by external auditor for the year
01.
ended 2018
02. Reviewed compliance status on Management Letter submitted by External Auditors
Reviewed and recommended on the appointment of external auditor for JBL UAE
03.
branches
The Committee met with the Statutory Auditors before finalization of financial
04.
statements for the year 2018
It properly addressed the issues mentioned in the Management Letter for taking
05.
appropriate action by the Management
Reviewed External Auditor appointment criteria and process and made
06. recommendation to the board for appointment of M/S Aziz Halim Khair Chowdhury
Chartered Accountants firms as statutory auditors of the Bank for the year 2018
Reviewed External Auditor appointment criteria and process and made
recommendation to the board for appointment of Grant Thornton Audit and
07.
Accounting Limited as statutory auditors of JBL four branches in UAE for the year
2018
Examined whether the findings and recommendations made by the external auditors
08.
are duly considered by the management or not on quarterly rest
09. Review the performance of the external auditors and their audit reports
E) Activities Related to Compliance with Existing Laws and Regulations
JBL Audit Committee reviewed whether the laws and regulations introduced by the
regulatory authorities (Central Bank and other bodies) and internal
circulars/instructions/policies regulations are approved by the board and management
01. being complied with or not. It reviewed Green Banking activities of Janata Bank
Limited. It submitted compliance report to the Board on quarterly basis on
regularization of the omission, fraud and forgeries and other irregularities detected
by the internal and external auditors and inspectors of regulatory authorities
F) Policy and Procedure Review of Related Activities
Reviewed Asset Liability Manual, Anti Money Laundering Policy for UAE
Branches, Annual Audit Plan 2018 for Audit and Inspection Division, IT Audit of
01. T24 User Management System, System Audit on IT System and Data Center, Internal
Control and Compliance Health Report 2017, Prize policy on cash recovery from
NPL and made recommendation to board for final approval
90
SL Particulars Comments
G) Other Activities
Reviewed and recommended on the coverage of operating losses incurred by JEC
01.
Italy
The committee emphasized on loan recovery and reviewed meeting minutes of
02.
different units of the bank on a regular basis
Reviewed Head Office Interest account and recommended guidelines for better
03.
operational efficiency
Reviewed accounting policies related to maintenance of provision on loan and
04.
advances
05. Recommended issues related to FDBP transactions in AD branches of JBL
06. Reviewed and recommended on the appointment of income tax advisor for JBL
Reviewed implementation report on observation, recommendations and decisions of
07.
the Audit Committee meetings from time to time for self-assessment purpose
Reviewed and recommended on the Directors’ Report to Shareholders for the year
08.
2018
(v) Related party relationship disclosure during the year 2018 (in compliance of BAS-24)
(iv) Significant contracts where Bank is a party & wherein Directors have interest
Nil
(v) Lending Policies to Related Parties
Related parties are allowed Loans and Advances as per General Loan Policy of the Bank & as per
requirements of Section 27(1) of the Bank Companies Act (Amendment) 2013.
(vi) Business other than Banking business with any related concern of the Directors as per
Section-18(2) of the Bank Companies Act (Amendment) 2013.
Nil
(vi) Investments in the Securities of Directors and their related concern
Nil
91