BankAsia AIR 2019 Financial

FINANCIAL
STATEMENTS
264
Annual Integrated Report 2019 265
Bank Asia Limited
Independent Auditor’s Report
to the Shareholders of Bank Asia Limited
Report on the Audit of the Consolidated and Separate Financial Statements
Opinion
We have audited the consolidated financial statements of Bank Asia Limited and its subsidiaries (the “Group”), as well as the separate
financial statements of Bank Asia Limited (the “Bank”),which comprise the consolidated and separate balance sheets as at 31 December
2019, and the consolidated and separate profit and loss accounts, consolidated and separate changes in equity and consolidated and
separate cash flow statement 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 statement of the Bank give
true and fair view of the consolidated balance sheet of the group and the separate balance sheet of the Bank as at 31 December 2019,
and of its consiladated 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 02-03.
Basis for Opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are
further described in the Auditors’ Responsibilities for the Audit of the Consolidated and Separate Financial Statements section of our
report. We are independent of the Group and the Bank in accordance with the International Ethics Standards Board for Accountants’
Code of Ethics for Professional Accountants (IESBA Code), Bangladesh Securities and Exchange Commission (BSEC) and Bangladesh
Bank, and we have fulfilled our other ethical responsibilities in accordance with the IESBA Code and the Institute of Chartered
Accountants of Bangladesh (ICAB) Bye Laws. We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our opinion.
Key Audit Matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the consolidated
and separate financial statements of the current period. These matters were addressed in the context of our audit of the consolidated
and separate financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these
matters.
Key audit matter How our audit addressed the key audit matter
Investment
Refer note no 3.1.2,3,4 and 5 and 7, 7(a) to the consolidated financial statements
The classification and measurement in quoted and unquoted securities We assessed the processes and controls put in place by the Group to
require judgment and complex estimates. identify and confirm the existence of financial instruments.
In the absence of a quoted price in an active market, the fair value of We obtained an understanding, evaluated the design and tested the
quoted and unquoted securities is determined using complex valuation operating effectiveness of the key controls over the financial instrument
techniques which may take into consideration direct or indirect valuation processes, including controls over market data inputs into valu-
unobservable market data and complex pricing models which require an ation models, applicable governance, and valuation adjustments.
elevated level of judgment.
We tested a sample of the valuation models and the inputs used in those
models, using a variety of techniques, including comparing inputs to
available market data.
Finally,we assessed the appropriateness and presentation of disclosures
against relevant accounting standards and Bangladesh Bank guidelines.
Measurement of provision for loans and advances
Refer note no3.1.6,and 8, 8(a) 13, 13(a) to the consolidated financial statements
The process for estimating the provision for loans and advances portfolio We tested the design and operating effectiveness of key controls focusing
associated with credit risk is significant and complex. on the following:
For the individual analysis, these provisions consider the estimates of Tested the credit appraisal, loan disbursement procedures, monitor-
future business performance and the market value of collateral provided ing and provisioning process;
for credit transactions.
Reviewed identification of loss events, including early warning and
For the collective analysis, these provisions are manually processed that default warning indicators;
deals with voluminous databases, assumptions and calculations for the
Reviewed quarterly Classification of Loans (CL);
provision estimates of complex design and implementation.
At year end the Group reported total gross loans and advances of BDT.
230,095,211,871 (2018: BDT. 217,552,931,835) and provision for loans and
advances of BDT 12,833,611,089 (2018:9,502,495,960) including provision
maintained by BASL BDT. 554,494,169 (2018: BDT. 518,494,169).
266
Key audit matter How our audit addressed the key audit matter
We have focused on the following significant judgements and estimates Our substantive procedures in relation to the provision for loans and
which could give rise to material misstatement in the financial state- advances portfolio comprised the following:
ments or management bias:
Reviewed the adequacy of the companies general and specific
Completeness and timing of recognition of loss events in accordance provisions;
with criteria set out in BRPD circular no. 16 dated 06 December 1998, 9
Assessed the methodologies on which the provision amounts
dated 14 May 2001, 9 and 10 dated 20 August 2005, 8 dated 07 August
based, recalculated the provisions and tested the completeness and
2007, 10 dated 18 September 2007, 14 dated 23 September 2012, 19 dat-
accuracy of the underlying information;
ed 27 December 2012, 5 dated 29 May 2013, 16 dated 18 November 2014,
Finally, we assessed the appropriateness and presentation of disclo-
8 dated 02 August 2015, 12 dated 20 August 2017, 15 dated 27 September
sures against relevant accounting standards and Bangladesh Bank
2017, 01 dated 03 January 2018, 01 dated 20 February 2018, 01 dated 03
guidelines.
January 2019, 01 dated 06 February 2019, 03 dated 21 April 2019,
05 dated 16 May 2019.
For individually assessed provisions, the measurement of the provision
may be dependent on the valuation of collateral, estimates of exit values
and the timing of cash flows.
Provision measurement is primarily dependent upon key assumptions
relating to probability of default, ability to repossess collateral and recov-
ery rates.
Legal and regulatory matters
We focused on this area because the Bank and its subsidiaries (the We obtained an understanding, evaluated the design and tested the op-
“Group”) operates in a legal and regulatory environment that is exposed erational effectiveness of the Group’s key controls over the legal provision
to significant litigation and similar risks arising from disputes and regula- and contingency processes.
tory proceedings. Such matters are subject to many uncertainties and the
We enquired into those charged with governance to obtain their views on
outcome may be difficult to predict.
the status of all significant litigation and regulatory matters.
These uncertainties inherently affect the amount and timing of potential
We enquired of the Group’s internal legal counsel for all significant litiga-
outflows with respect to the provisions which have been established and
tion and regulatory matters and inspected internal notes and reports. We
other contingent liabilities.
also received formal confirmations from external counsel.
Overall, the legal provision represents the Group’s best estimate for
We assessed the methodologies on which the provision amounts are
existing legal matters that have a probable and estimable impact on the
based, recalculated the provisions, and tested the completeness and
Group’s financial position.
accuracy of the underlying information.
We also assessed the Group’s provisions and contingent liabilities disclo-
sure.
IT Assets Management
Our audit procedures have a focus on IT systems and controls due We tested the design and operating effectiveness of the Group’s
to the pervasive nature and complexity of the IT environment, the IT access controls over the information systems that are critical to
large volume of transactions processed in numerous locations financial reporting. We tested IT general controls (logical access,
daily and the reliance on automated and IT dependent manual changes management and aspects of IT operational controls).
controls. This included testing that requests for access to systems were
appropriately reviewed and authorized. We tested the Group’s
Our areas of audit focus included master data management,
periodic review of access rights. We inspected requests of chang-
user access management, developer access to the production
es to systems for appropriate approval and authorization. We
environment and changes to the IT environment. Among others,
these are key to ensuring operating effecitveniess of IT dependent considered the control environment relating to various interfaces,
configuration and other application layer controls identified as
application based controls.
key to our audit.
Where deficiencies were identified, we tested compensating
controls or performed alternate procedures. In addition, we un-
derstood where relevant, changes were made to the IT landscape
during the audit period and tested those changes that had a
significant impact on financial reporting.
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

Bank Asia Limited
our knowledge obtained in the audit or otherwise appears to be materially misstated.
Responsibilities of Management and Those Charged with Governance for the Consolidated and Separate Financial
Statements and Internal Controls
Management is responsible for the preparation and fair presentation of the consolidated financial statements of the Group and
also separate financial statements of the Bank in accordance with IFRSs as explained in note 02-03, and for such internal control as
management determines is necessary to enable the preparation of consolidated and separate financial statements that are free from
material misstatement, whether due to fraud or error. The Bank Company Act, 1991 (As amended 2018) and the Bangladesh Bank
Regulations require the Management to ensure effective internal audit, internal control and risk management functions of the Bank. The
Management is also required to make a self-assessment on the effectiveness of anti-fraud internal controls and report to Bangladesh
Bank on instances of fraud and forgeries.
In preparing the consolidated and separate financial statements, management is responsible for assessing the Group’s and the Bank’s
ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of
accounting unless management either intends to liquidate the Group and the Bank or to cease operations, or has no realistic alternative
but to do so.
Those charged with governance are responsible for overseeing the Group’s and the Bank’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Consolidated and Separate Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated and separate financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable
assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a
material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated
and separate financial statements
As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional skepticism throughout the
audit. We also:
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.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the
circumstances.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures
made by management.
Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the
Group’s and the Bank’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to
draw attention in our auditor’s report to the related disclosures in the consolidated and separate financial statements or, if such
disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our
auditor’s report. However, future events or conditions may cause the Group and the Bank to cease to continue as a going concern.
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.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the
Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and
performance of the group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
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.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the
audit of the consolidated and separate financial statements of the current period and are therefore the key audit matters. We describe
these matters in our auditors’ report unless law or regulation precludes public disclosure about the matter or when, in extremely rare
268
circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so
would reasonably be expected to outweigh the public interest benefits of such communication.
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 (as Amended 2018)
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) The financial statements of the Bank’s subsidiaries named Bank Asia Securities Limited audited by us, but other two overseas
subsidiaries BA Exchange Company (UK) Limited and BA Express USA Inc. was not audited by us. The financial statements of BA
Exchange Company (UK) Limited for the year ended 31 December 2019 have been audited by AGP Consulting Chartered Accountants
and Statutory Auditors, UK and expressed an unmodified opinion. The financial statements of BA Express USA Inc. for the year ended
31 December 2019 have been audited by Arman Chowdhury, CPA P.C. USA and expressed an unmodified opinion. 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;
(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 issued by Bangladesh Bank;
(ix) adequate provisions have been made for advance and other assets which are in our opinion, doubtful of recovery;
(x) the information and explanations required by us have been received and found satisfactory;
(xi) we have reviewed over 80% of the risk weighted assets of the Bank and spent over 26,500 person hours; and
(xii) Capital to Risk-weighted Asset Ratio (CRAR) as required by Bangladesh Bank has been maintained adequately during the year.
Dated, Dhaka Md. Mominul Karim, FCA

22 March 2020 Partner
ACNABIN, Chartered Accountants

Bank Asia Limited
Bank Asia Limited and its subsidiaries
Consolidated Balance Sheet
as at 31 December 2019
Amount in Taka
Notes 31 Dec 2019 31 Dec 2018

PROPERTY AND ASSETS
Cash 23,986,604,446 15,555,719,854
In hand (including foreign currencies) 4.1(a) 3,242,877,542 2,683,207,852
Balance with Bangladesh Bank and its agent bank
(including foreign currencies) 4.2(a) 20,743,726,904 12,872,512,002
Balance with other banks and financial institutions 5(a) 23,634,997,570 26,243,135,322
In Bangladesh 19,875,113,514 23,753,126,357
Outside Bangladesh 3,759,884,056 2,490,008,965
Money at call and on short notice 6(a) 4,600,000,000 100,000,000
Investments 7(a) 55,526,971,926 36,544,202,442
Government 52,197,323,349 33,133,291,838
Others 3,329,648,577 3,410,910,604
Loans and advances/investments 8(a) 230,095,211,871 217,552,931,835
Loans, cash credits, overdrafts, etc/investments 210,835,675,997 196,655,897,163
Bills purchased and discounted 19,259,535,874 20,897,034,672
Fixed assets including premises, furniture and fixtures 9(a) 7,065,893,231 5,445,867,834
Other assets 10(a) 10,810,548,234 7,786,013,371
Non - banking assets - -
Total assets 355,720,227,278 309,227,870,658
LIABILITIES AND CAPITAL
Liabilities
Borrowings from other banks, financial institutions and agents 11(a) 34,382,128,495 31,379,916,599
Subordinated non-convertible bonds 11(aa) 11,800,000,000 7,400,000,000
Deposits and other accounts 12(a) 254,077,526,668 222,734,891,777
Current/Al-wadeeah current accounts and other accounts 47,821,635,983 47,487,805,711
Bills payable 3,742,697,471 4,124,678,804
Savings bank/Mudaraba savings bank deposits 48,293,710,027 39,558,517,712
Fixed deposits/Mudaraba fixed deposits 154,219,483,187 131,563,889,550
Bearer certificates of deposit - -
Other deposits - -
Other liabilities 13(a) 30,873,993,667 24,523,223,592
Total liabilities 331,133,648,830 286,038,031,968
Capital/shareholders' equity
Total shareholders' equity 24,586,578,448 23,189,838,689
Paid-up capital 14.2 11,659,068,600 11,103,874,860
Statutory reserve 15 9,052,555,407 8,268,393,179
Revaluation reserve 16(a) 2,065,683,636 2,120,032,204
General reserve 8,166,144 8,166,144
Retained earnings 17(a) 1,800,257,979 1,686,898,121
Foreign currency translation reserve 836,486 2,462,381
Non-controlling interest 17(b) 10,196 11,799
Total liabilities and shareholders' equity 355,720,227,278 309,227,870,658
270
Consolidated
Balance Sheet
Amount in Taka
Notes 31 Dec 2019 31 Dec 2018

OFF-BALANCE SHEET ITEMS
Contingent liabilities 18 118,576,860,518 136,225,517,128
Acceptances and endorsements 39,192,489,873 48,569,391,593
Letters of guarantee 36,999,351,447 41,312,967,803
Irrevocable letters of credit 26,468,819,479 30,327,687,774
Bills for collection 15,916,199,719 16,015,469,958
Other contingent liabilities - -
Other commitments 2,040,416,443 1,233,739,359
Documentary credits and short term trade-related transactions - -
Forward assets purchased and forward deposits placed 2,040,416,443 1,233,739,359
Undrawn note issuance and revolving underwriting facilities - -
Undrawn formal standby facilities, credit lines and other commitments - -
Total off-balance sheet items including contingent liabilities 120,617,276,961 137,459,256,487
These Financial Statements should be read in conjunction with the annexed notes
Chairman Director Director Director President and Managing Director
Report of the auditor’s to the shareholders:

This is the statement of Consolidated Balance Sheet referred to our report of even date.
Dhaka, Dated
22 March 2020 Md. Mominul Karim, FCA
Partner
ACNABIN, Chartered Accountants

Bank Asia Limited
Consolidated Profit and Loss Account
for the year ended 31 December 2019

Amount in Taka
Notes 31 Dec 2019 31 Dec 2018
OPERATING INCOME
Interest income 20(a) 22,974,067,272 21,010,148,200
Interest paid on deposits and borrowings, etc 21(a) 14,464,586,306 13,011,217,964
Net interest income 8,509,480,966 7,998,930,236
Investment income 22(a) 3,293,064,994 2,311,462,131
Commission, exchange and brokerage 23(a) 3,495,510,223 3,110,434,216
Other operating income 24(a) 1,052,116,649 985,191,390
7,840,691,866 6,407,087,737
Total operating income (A) 16,350,172,832 14,406,017,973
OPERATING EXPENSES
Salaries and allowances 25(a) 3,360,493,052 2,963,638,772
Rent, taxes, insurance, electricity, etc 26(a) 471,721,301 714,978,997
Legal expenses 27(a) 22,218,779 27,388,071
Postage, stamp, telecommunication, etc 28(a) 126,842,671 111,154,986
Stationery, printing, advertisements, etc 29(a) 159,503,843 136,747,954
Managing Director's salary and fees 30 16,572,420 13,900,000
Directors' fees 31(a) 3,726,400 3,886,000
Auditors' fees 32(a) 3,440,259 2,913,042
Depreciation and repairs of Bank's assets 33(a) 842,466,683 480,859,178
Other expenses 34(a) 1,914,318,567 1,767,128,995
Total operating expenses (B) 6,921,303,975 6,222,595,995
Profit before provision (C=A-B) 9,428,868,857 8,183,421,978
Provision for loans and advances/investments
General provision 2,847,887,484 990,055,890
Specific provision 2,841,142,562 2,714,517,014
5,689,030,046 3,704,572,904
Provision for off-balance sheet items 13.3 (196,376,913) (172,971,972)
Provision for diminution in value of investments (66,065,312) 10,000,000
Other provisions 25,000,000 12,500,000
Total provision (D) 34(c) 5,451,587,821 3,554,100,932
Total profit before tax (C-D) 3,977,281,036 4,629,321,046
Provision for taxation
Current tax 13.5.1(a) 2,019,469,389 2,395,930,537
Deferred tax 13.5.2 - -
2,019,469,389 2,395,930,537
Net profit after tax 1,957,811,647 2,233,390,509
Appropriations
Statutory reserve 15 784,162,228 923,255,397
General reserve - -
784,162,228 923,255,397
Retained surplus 1,173,649,419 1,310,135,112
Attributable to:
Equity holders of Bank Asia Limited 1,173,649,329 1,310,135,036
Non-controlling interest 90 76
1,173,649,419 1,310,135,112
Earnings Per Share (EPS) 37(a) 1.68 1.92

This is the statement of Consolidated Profit and Loss Account referred to our report of even date.
Md. Mominul Karim, FCA
Dhaka, Dated Partner
22 March 2020 ACNABIN, Chartered Accountants
272
Consolidated Cash Flow Statement

Amount in Taka
Notes 31 Dec 2019 31 Dec 2018
Cash flows from operating activities (A)
Interest receipts 25,393,562,346 22,761,387,592
Interest payments (14,444,046,102) (13,007,026,870)
Dividends receipts 51,407,464 31,854,449
Fees and commission receipts 3,495,510,223 3,110,434,216
Recoveries on loans previously written off 145,983,239 102,546,693
Cash payment to employees (3,367,078,233) (2,906,276,213)
Cash payment to suppliers (232,488,003) (206,063,350)
Income tax paid (2,121,219,144) (1,498,841,576)
Receipts from other operating activities 35 (a) 1,077,007,651 1,060,755,795
Payments for other operating activities 36 (a) (2,558,840,397) (2,641,350,091)
Operating profit before changes in operating assets & liabilities 7,439,799,044 6,807,420,645
Increase/(decrease) in operating assets and liabilities
Loans and advances to customers and banks (13,378,765,853) (19,325,039,902)
Other assets (680,913,355) (369,434,488)
Deposits from customers and banks 31,342,634,891 15,450,946,090
Trading liabilities 3,002,211,896 914,358,352
Other liabilities (983,438,889) 19,736,557
Net Increase/(decrease) in operating assets and liabilities 19,301,728,690 (3,309,433,390)
Net cash flows from operating activities 26,741,527,734 3,497,987,254
Cash flows from investing activities (B)
Investments in treasury bills, bonds and others (19,064,031,511) (8,702,036,838)
Sale/(Purchase) of trading securities 81,262,027 303,184,687
(Purchase)/disposal of fixed assets including lease rental and right-of-use assets (1,280,200,867) (518,914,367)
Net cash flows from/(used in) investing activities (20,262,970,351) (8,917,766,518)
Cash flows from financing activities ( C )
Issuance of subordinated non-convertible bond 5,000,000,000 -
Adjustment of subordinated non-convertible bond (600,000,000) (692,588,885)
Dividend paid (cash dividend) (555,193,743) -
Net cash flows from/(used in) financing activities 3,844,806,257 (692,588,885)
Net increase/(decrease) in cash and cash equivalents (A+B+C) 10,323,363,640 (6,112,368,149)
Effects of exchange rate changes on cash and cash equivalents - -
Cash and cash equivalents at the beginning of the year 41,900,401,176 48,012,769,325
Cash and cash equivalents at the end of the year 52,223,764,816 41,900,401,176
Cash and cash equivalents:
Cash 3,242,877,542 2,683,207,852
Balance with Bangladesh Bank and its agent bank(s) 20,743,726,904 12,872,512,002
Balance with other banks and financial institutions 23,634,997,570 26,243,135,322
Money at call and on short notice 4,600,000,000 100,000,000
Prize bonds 2,162,800 1,546,000
52,223,764,816 41,900,401,176

Bank Asia Limited
274
Consolidated Statement of Changes in Equity
Amount in Taka
Foreign
Retained Non-con-
Paid-up Statutory Revaluation General currency Total
Particulars earnings Total trolling
capital reserve reserve reserve translation equity
interest
reserve
Balance at 01 January 2018 9,870,110,990 7,345,137,782 2,154,384,193 8,166,144 1,551,777
1,554,316,722 20,933,667,608 11,723 20,933,679,331
Transferred during the year - 923,255,397 - - -
(923,255,397) - - -
Adjustment on revaluation of fixed assets and
- - 19,363,275 - - - 19,363,275 - 19,363,275
other investment
Transferred to retained earnings - - (53,715,264) - - 53,715,264 - - -
Foreign currency translation for opening retained
- - - - - 2,494,970 2,494,970 - 2,494,970
earnings
Foreign currency translation for the year - - - - 910,605 - 910,605 - 910,605
Issue of bonus shares 1,233,763,870 - - - - (1,233,763,870) - - -
Net profit for the year - - - - - 2,233,390,433 2,233,390,433 76 2,233,390,509
Balance as at 31 December 2018 11,103,874,860 8,268,393,179 2,120,032,204 8,166,144 2,462,381 1,686,898,121 23,189,826,890 11,799 23,189,838,689
Transferred during the year - 784,162,228 - - - (784,162,228) - - -
Adjustment on revaluation of fixed assets and
- - (633,304) - - - (633,304) - (633,304)
other investment
Transferred to retained earnings - - (53,715,264) - - 53,715,264 1,693 (1,693) -
Foreign currency translation for opening retained
- - - - - (3,618,945) (3,618,945) - (3,618,945)
earnings
Foreign currency translation for the year - - - - (1,625,895) - (1,625,895) - (1,625,895)
Issue of bonus shares 555,193,740 - - - - (555,193,740) - - -
Cash dividend paid - (555,193,743) (555,193,743) (555,193,743)
Net profit for the year - - - - - 1,957,811,557 1,957,811,557 90 1,957,811,647
Balance as at 31 December 2019 11,659,068,600 9,052,555,407 2,065,683,636 8,166,144 836,486 1,800,256,286 24,586,568,251 10,196 24,586,578,448

Bank Asia Limited
Balance Sheet
Amount in Taka
Notes 31 Dec 2019 31 Dec 2018
PROPERTY AND ASSETS
Cash 23,985,692,079 15,552,120,728
In hand (including foreign currencies) 4.1 3,241,965,175 2,679,608,726
Balance with Bangladesh Bank and its agent bank
(including foreign currencies) 4.2 20,743,726,904 12,872,512,002
In Bangladesh 5.1 19,491,968,105 23,488,274,856
Outside Bangladesh 5.2 3,621,585,699 2,377,338,310
Money at call and on short notice 6 4,600,000,000 100,000,000
Investments 7 54,932,579,936 35,999,198,344
Government 52,197,323,349 33,133,291,838
Others 2,735,256,587 2,865,906,506
Loans and advances/investments 8 227,298,956,048 214,618,151,145
Loans, cash credits, overdrafts, etc/investments 208,039,420,174 193,721,116,473
Fixed assets including premises, furniture and fixtures 9 7,025,602,707 5,431,553,592
Other assets 10 12,843,989,123 9,724,763,581
Total assets 353,800,373,697 307,291,400,556
Liabilities
Borrowings from other banks, financial institutions and agents 11 34,382,128,495 31,318,674,113
Subordinated non-convertible bonds 11 (aa) 11,800,000,000 7,400,000,000
Deposits and other accounts 12 253,709,574,615 222,471,716,244
Bills payable 3,742,697,471 4,124,678,804
Savings bank/Mudaraba savings bank deposits 48,293,710,027 39,558,517,712
Bearer certificates of deposit - -
Other deposits - -
Other liabilities 13 29,163,552,669 22,760,876,373
Capital/shareholders' equity
Total shareholders' equity 24,745,117,918 23,340,133,826
Paid-up capital 14.2 11,659,068,600 11,103,874,860
Statutory reserve 15 9,052,555,407 8,268,393,179
Revaluation reserve 16 2,065,683,636 2,120,032,204
Retained earnings 17 1,959,644,131 1,839,667,438
Total liabilities and shareholders' equity 353,800,373,697 307,291,400,556

Bank Asia Limited
Balance Sheet
Amount in Taka
Notes 31 Dec 2019 31 Dec 2018

OFF-BALANCE SHEET ITEMS
Contingent liabilities 18 118,576,860,518 136,225,517,128
Acceptances and endorsements 39,192,489,873 48,569,391,593
Letters of guarantee 36,999,351,447 41,312,967,803
Irrevocable letters of credit 26,468,819,479 30,327,687,774
Bills for collection 15,916,199,719 16,015,469,958
Other commitments 2,040,416,443 1,233,739,359
Documentary credits and short term trade-related transactions - -
Forward assets purchased and forward deposits placed 2,040,416,443 1,233,739,359
Undrawn note issuance and revolving underwriting facilities - -
Undrawn formal standby facilities, credit lines and other commitments - -
Total off-balance sheet items including contingent liabilities 120,617,276,961 137,459,256,487

This is the statement of Balance Sheet referred to our report of even date.
276
Bank Asia Limited
Profit and Loss Account
Amount in Taka
Notes 31 Dec 2019 31 Dec 2018

OPERATING INCOME
Interest income 20 22,863,139,585 20,910,683,339
Interest paid on deposits and borrowings, etc 21 14,462,380,548 13,007,993,495
Net interest income 8,400,759,037 7,902,689,844
Investment income 22 3,293,064,994 2,311,462,131
Commission, exchange and brokerage 23 3,361,368,126 2,990,693,997
Other operating income 24 1,018,730,455 917,723,225
7,673,163,575 6,219,879,353
Total operating income (A) 16,073,922,612 14,122,569,197
OPERATING EXPENSES
Salaries and allowances 25 3,266,449,893 2,882,190,002
Rent, taxes, insurance, electricity, etc 26 440,093,246 684,528,849
Legal expenses 27 20,534,559 25,213,849
Postage, stamp, telecommunication, etc 28 124,471,658 108,489,491
Stationery, printing, advertisements, etc 29 156,689,993 133,450,519
Managing Director's salary and fees 30 16,572,420 13,900,000
Directors' fees 31 3,424,000 3,656,000
Auditors' fees 32 1,478,225 875,500
Depreciation and repairs of Bank's assets 33 834,076,015 475,722,070
Other expenses 34 1,887,668,330 1,734,164,998
Total operating expenses (B) 6,751,458,339 6,062,191,278
Profit before provision (C=A-B) 9,322,464,273 8,060,377,919
Provision for loans and advances/investments
General provision 2,847,887,484 990,055,890
Specific provision 2,805,142,562 2,604,517,014
13.2 5,653,030,046 3,594,572,904
Provision for off-balance sheet items 13.3 (196,376,913) (172,971,972)
Provision for diminution in value of investments 13.7 (80,000,000) 10,000,000
Other provisions 13.8 25,000,000 12,500,000
Total provision (D) 34(b) 5,401,653,133 3,444,100,932
Total profit before tax (C-D) 3,920,811,140 4,616,276,987
Provision for taxation
Current tax 13.5.1 1,960,000,000 2,350,000,000
Deferred tax 13.5.2 - -
1,960,000,000 2,350,000,000
Net profit after tax 1,960,811,140 2,266,276,987
Appropriations
Statutory reserve 15 784,162,228 923,255,397
General reserve - -
784,162,228 923,255,397
Retained surplus 1,176,648,912 1,343,021,590
Earnings Per Share (EPS) 37 1.68 1.94

This is the statement of Profit and Loss Account referred to our report of even date.

Bank Asia Limited
Bank Asia Limited
Cash Flow Statement
Amount in Taka
Notes 31 Dec 2019 31 Dec 2018
Cash flows from operating activities (A)
Interest receipts 25,072,331,026 22,447,616,948
Interest payments (14,231,536,711) (12,789,496,618)
Dividends receipts 51,407,464 31,854,449
Fees and commission receipts 3,361,368,126 2,990,693,997
Recoveries on loans previously written off 145,983,239 102,546,693
Cash payment to employees (3,273,035,074) (2,824,827,443)
Cash payment to suppliers (229,674,153) (202,765,915)
Income tax paid (2,051,736,653) (1,415,204,443)
Receipts from other operating activities 35 1,043,621,457 993,287,630
Payments for other operating activities 36 (2,494,242,438) (2,570,828,687)
Operating profit before changes in operating assets & liabilities 7,394,486,283 6,762,876,611
Increase/(decrease) in operating assets and liabilities
Loans and advances to customers and banks (13,519,492,993) (19,214,544,287)
Other assets (708,379,076) (367,508,723)
Deposits from customers and banks 31,237,858,371 15,430,244,863
Trading liabilities 3,063,454,382 1,050,362,060
Other liabilities (950,432,513) (17,537,100)
Net Increase/(decrease) in operating assets and liabilities 19,123,008,171 (3,118,983,186)
Net cash flows from operating activities 26,517,494,454 3,643,893,424
Cash flows from investing activities (B)
Investments in treasury bills, bonds and others (19,064,031,511) (8,702,036,838)
Sale/(Purchase) of trading securities 130,649,919 248,656,913
(Purchase)/disposal of fixed assets including lease rental and right-of-use asse (1,246,790,330) (513,611,126)
Net cash flows from/(used in) investing activities (20,180,171,922) (8,966,991,051)
Cash flows from financing activities (C)
Issuance of subordinated non-convertible bond 5,000,000,000 -
Adjustment of subordinated non-convertible bond (600,000,000) (692,588,885)
Dividend paid (cash dividend) (555,193,743) -
Net cash flows from/(used in) financing activities 3,844,806,257 (692,588,885)
Net increase/(decrease) in cash and cash equivalents (A+B+C) 10,182,128,789 (6,015,686,512)
Effects of exchange rate changes on cash and cash equivalents - -
Cash and cash equivalents at the beginning of the year 41,519,279,894 47,534,966,406
Cash and cash equivalents at the end of the year 51,701,408,683 41,519,279,894
Cash and cash equivalents:
Cash 3,241,965,175 2,679,608,726
Balance with Bangladesh Bank and its agent bank(s) 20,743,726,904 12,872,512,002
Money at call and on short notice 4,600,000,000 100,000,000
Prize bonds 2,162,800 1,546,000
51,701,408,683 41,519,279,894
278
Bank Asia Limited
Statement of Changes in Equity
Amount in Taka
Paid-up Statutory Revaluation General Retained
Particulars Total
capital reserve reserve reserve earnings
Balance at 01 January 2018 9,870,110,990 7,345,137,782 2,154,384,193 8,166,144 1,676,694,455 21,054,493,564
Transferred during the year - 923,255,397 - - (923,255,397) -
Adjustment on revaluation of fixed assets and other investment - - 19,363,275 - - 19,363,275
Transferred to retained earnings - - (53,715,264) - 53,715,264 -
Issue of bonus shares 1,233,763,870 - - - (1,233,763,870) -
Net profit for the year - - - - 2,266,276,987 2,266,276,987
Balance at 31 December 2018 11,103,874,860 8,268,393,179 2,120,032,204 8,166,144 1,839,667,438 23,340,133,826
Transferred during the year - 784,162,228 - - (784,162,228) -
Adjustment on revaluation of fixed assets and other investment - - (633,304) - - (633,304)
Transferred to retained earnings - - (53,715,264) - 53,715,264 -
Issue of bonus shares 555,193,740 - - - (555,193,740) -
Cash dividend paid - (555,193,743) (555,193,743)
Net profit for the year - - - - 1,960,811,140 1,960,811,140
Balance at 31 December 2019 11,659,068,600 9,052,555,407 2,065,683,636 8,166,144 1,959,644,131 24,745,117,918
Bank Asia Limited

Annual Integrated Report 2019
279
280
Bank Asia Limited
Liquidity Statement (Analysis of Maturity of Assets and Liabilities)
Amount in Taka
Maturity
Particulars Up to 1-3 3-12 1-5 Above Total
1 month months months years 5 years
Assets
Cash in hand and with banks 9,348,177,079 - - - 14,637,515,000 23,985,692,079
Balance with other banks and financial institutions 10,148,653,804 10,964,900,000 2,000,000,000 - - 23,113,553,804
Money at call and on short notice 4,600,000,000 - - - - 4,600,000,000

Investments 3,800,078,275 4,022,700,000 16,213,600,000 12,123,715,602 18,772,486,059 54,932,579,936
Loans and advances 32,536,456,048 33,477,600,000 75,668,900,000 70,342,105,600 15,273,894,400 227,298,956,048
Fixed assets including premises, furniture and fixtures - - - - 7,025,602,707 7,025,602,707
Other assets 1,437,500,000 801,800,000 1,586,637,996 6,903,257,128 2,114,794,000 12,843,989,123
Non-banking assets - - - - - -
Total Assets (A) 61,870,865,206 49,267,000,000 95,469,137,996 89,369,078,330 57,824,292,166 353,800,373,697
Liabilities
Borrowings from Bangladesh Bank, other banks, 4,207,328,495 11,386,200,000 17,036,200,000 3,352,400,000 10,200,000,000 46,182,128,495
financial institutions and agents
Deposits 44,306,265,277 47,318,180,598 69,390,930,219 76,241,136,231 16,453,062,291 253,709,574,615
Provision and other liabilities 277,200,000 911,800,000 1,145,033,682 2,014,114,905 24,815,404,082 29,163,552,669
Total Liabilities (B) 48,790,793,772 59,616,180,598 87,572,163,901 81,607,651,136 51,468,466,373 329,055,255,779
Net Liquidity Excess/(Shortage) (A-B) 13,080,071,434 (10,349,180,598) 7,896,974,095 7,761,427,194 6,355,825,793 24,745,117,918

Bank Asia Limited
Notes to the financial statements
as at and for the year ended 31 December 2019
1. THE BANK AND ITS ACTIVITIES
1.1 Bank Asia Limited

Bank Asia Limited (“the Bank”) is one of the third generation private commercial banks (PCBs) incorporated in Bangladesh on 28
September 1999 as a public limited company under the Companies Act 1994, governed by the Bank Company Act 1991. The Bank
went for public issue of its shares on 23 September 2003 and its shares are listed with Dhaka Stock Exchange Limited and Chittagong
Stock Exchange Limited. At present the Bank has 128 branches including 4 SME/Agri Branches and 4 SME service centres, 5 Islamic
Windows and 168 own ATM booths. The Bank has three subsidiary companies namely, Bank Asia Securities Limited incorporated in
Bangladesh, BA Exchange Company (UK) Limited incorporated in United Kingdom and BA Express USA Inc. incorporated in United
States of America (USA). The Bank has also an Offshore Banking Unit (OBU) at Chittagong Export Processing Zone, Chittagong.
Bank Asia Limited acquired the business of Bank of Nova Scotia, Dhaka (incorporated in Canada) in the year 2001. At the
beginning of the year 2002, the Bank also acquired the Bangladesh operations of Muslim Commercial Bank Limited (MCBL), a
bank incorporated in Pakistan, having two branches at Dhaka and Chittagong. In taking over Bangladesh operations, all assets
and certain specific liabilities of MCBL were taken over by Bank Asia Limited at their book values.
The registered office of the Bank is situated at Rangs Tower, 68 Purana Paltan, Dhaka 1000, Bangladesh.
1.2 Principal activities

The principal activities of the Bank are to provide all kinds of conventional and Islamic commercial banking services to its
customers through its branches, islamic windows, SME centres, and vibrant alternative delivery channels (ATM booths, Mobile
banking, internet banking) in Bangladesh.
1.3 Islamic banking unit

The Bank obtained permission from Bangladesh Bank (country’s central bank) to operate Islamic Banking Unit vide Bangladesh
Bank’s letter no. BRPD(P-3)745(53)/2008-4804 dated 17 December 2008. The Bank commenced operation of this Unit from 24
December 2008. The Islamic Banking Unit is governed under the rules and regulations of Bangladesh Bank.
1.4 Off-shore banking unit

The Bank obtained off-shore banking unit permission from Bangladesh Bank vide its letter no. BRPD (P-3)744(94)/2007-1853 dated
21 June 2007. Operation of this unit commenced from 28 January 2008 and its office is located at Zone Service Complex, Chittagong
Export Processing Zone, Chittagong. Off-shore banking unit is governed under the rules and regulations of Bangladesh Bank.
1.5 Bank Asia Securities Limited

Bank Asia Securities Limited, a majority owned (99.99%) subsidiary company of Bank Asia Limited was incorporated as a private
limited company in Bangladesh on 04 August 2010 bearing certificate of incorporation no. C-86230/10 dated 04 August 2010
under the Companies Act 1994 having its registered office at Hadi Mansion (7th Floor), 2 Dilkusha Commercial Area, Dhaka 1000
which commenced its business on the 17 April 2011.
The main objective of this company is to act as a full fledged stock broker and stock dealer to execute buy and sale order and
to maintain own portfolio as well as customers’ portfolio under the discretion of customers. It also performs the other activities
relating to capital market as and when regulators permit.
1.6 BA Exchange Company (UK) Limited

BA Exchange Company (UK) Limited was incorporated as a private limited company under United Kingdom Companies Act and
registered with Companies House of England and Wales vide registration no. 07314397 as a fully owned subsidiary company of
Bank Asia Limited, BA Exchange Company (UK) Limited launched its operation in London on 16 May 2011. BA Exchange Company
(UK) Limited attaches a fresh width to the Bank’s remittance operation and expands its global presence for remittance services.
Bank Asia stretched its business in United Kingdom through its fully owned (100%) subsidiary to facilitate speedy and depend-
able medium for remitting the hard-earned money of expatriates to home.
1.7 BA Express USA inc

BA Express USA Inc. is fully owned subsidiary company of Bank Asia Limited incorporated in New York State Department of
Financial Services (NYSDFS) in USA. The company obtained license to receive money for transmission within USA and abroad and
to transmit same, pursuant to the provision of Article 13-B of the USA Banking Law, subject to all rules and regulations made by
the Superintendent of Financial Services of New York relating to such business, effective November 22, 2013. The company has
started its commercial operation from June 01, 2014.

Bank Asia Limited
Notes to the
financial statements
2. BASIS OF PREPARATION
2.1 Statement of compliance
The financial statements of the Bank have been prepared in accordance with the “First Schedule (Section 38) of the Bank Company
Act 1991 (amended upto 2018), BRPD circular no. 14 dated 25 June 2003, other Bangladesh Bank Circulars, International Financial
Reporting Standards (IFRSs), International Accounting Standards (IAS), and the standards set by the FRA the Financial Reporting
Council (FRC) as per The Financial Reporting Act 2015 (FRA) enacted in 2015. Section 38 of the Bank Company Act 1991 has been
replaced through BRPD Circular no. 10 dated October 04, 2015. The Bank complied with the requirement of the following regulatory
and legal authorities:

i. Bank Company Act 1991 (amended upto 2018)
ii. Companies Act 1994
iii Rules, regulations and circulars issued by the Bangladesh Bank from time to time
iv. The Securities and Exchange Ordinance 1969
v. The Securities and Exchange Rules 1987
vi Bangladesh Securities and Exchange Commission Act 1993
vii. Bangladesh Securities and Exchange Commission (Public Issues) Rules 2015
viii. Income Tax Ordinance and Rules 1984
ix. Value Added Tax Act 1991
x. Dhaka Stock Exchange (DSE), Chittagong Stock Exchange (CSE) and Central Depository Bangladesh (CDBL) rules and
regulations.
In case the requirement of provisions and circulars issued by Bangladesh Bank differs with those of other regulatory authorities
and accounting standards, the provisions and circulars issued by Bangladesh Bank shall prevail.
Bank have departed from certain contradictory requirements of IFRSs in order to comply with the rules and regulations of
Bangladesh Bank which are disclosed below:
i) Presentation of financial statements

IFRS: As per IAS 1, a complete set of financial statements comprises a statement of financial position, a statement of profit or loss
and other comprehensive income, a statement of changes in equity, a statement of cash flows, notes comprising a summary of
significant accounting policies and other explanatory information and comparative information. IAS 1 has also stated the entity to
disclose assets and liabilities under current and non-current classification separately in its statement of financial position.
Bangladesh Bank: A format of financial statements (i.e. balance sheet, profit and loss account, cash flows statement, changes
inequity, liquidity statement) is prescribed in the “First Schedule” of section 38 of the Bank Company Act 1991 (amended up to
2018) and BRPD circular no. 14 dated 25 June 2003 of Bangladesh Bank. Assets and liabilities are not classified under current and
non-current heading in the prescribed format of financial statements.
ii) Investment in shares and Securities

IFRS: As per requirements of IFRS 9 investment in shares and securities generally falls under “Amortized cost”, “fair value through
profit or loss ” or “fair value through other comprehensive income” where any change in the fair value at the year-end is taken to
profit or loss account or other comprehensive income/revaluation reserve respectively.
Bangladesh Bank: As per BRPD circular no. 14 dated 25 June 2003 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. As per DOS circular
letter no. 03 dated March 12, 2015, investment in Mutual Fund (close-end) is revalued at lower of cost and (higher of market value
and 85% of NAV). Being provision is made for any loss arising from diminution in value of investment; otherwise investments are
recognized at costs.
iii) Revaluation gain/loss on Government securities

IFRS: As per requirement of IFRS 9 where T-bills and T-bonds will fall under the category of “held for trading”, any change in the
fair value of held for trading assets is recognized through profit or loss.
T-bills/bonds designated as held to maturity are measured at amortized cost method and interest income is recognized through
the profit and loss account.
Bangladesh Bank: According to DOS circular no. 05 dated 26 May 2008 and subsequent clarification in DOS circular no. 05 dated
28 January 2009 loss on revaluation of Government securities (T-bill/T-bond) which are categorized as held for trading will
be charged through profit and loss account, but any gain on such revaluation should be recorded under Revaluation Reserve
Account. T-bills designated as held to maturity are measured at amortized cost method but interest income/gain is recognized
282
Notes to the
through reserve.
iv) Provision on loans and advances

IFRS: As per IFRS 9 an entity should start the impairment assessment by considering whether objective evidence of impairment
exists for financial assets that are individually significant. For financial assets which are not individually significant, the
assessment can be performed on an individual or collective (portfolio) basis.
Bangladesh Bank: As per BRPD circular no. 16 dated 18 November 2014, BRPD Circular 14 dated 23 September 2012, BRPD
Circular no. 19 dated 27 December 2012 and BRPD Circular no. 05 dated 29 May 2013, provision for sub-standard loans, doubtful
loans and bad losses has to be provided at 20%, 50% and 100% respectively for loans and advances depending on the duration
of overdue. Provision for unclassified loan was made at the specified rate i.e. 0.25% to 5% based on different categories of loans
and advances. Such provision policies are not specifically in line with those prescribed by IFRS 9. Also, a general provision @ 1%
should be provided for off-balance sheet exposures.
Statutory reserve has been maintained @ 20% of profit before tax in accordance with provisions of section 24 of the Bank
Company Act 1991 (amended upto 2018) until such reserve equal to its paid-up capital together with the share premium.
Statutory reserve transferred in yearly basis.
v) Other comprehensive income

IFRS: As per IAS 1 Other Comprehensive Income is a component of financial statements or the elements of Other Comprehensive
Income are to be included in a Single Comprehensive Income (OCI) Statement.
Bangladesh Bank: Bangladesh Bank has issued financial templates for financial statements which will strictly be followed by
all banks. The templates of financial statements issued by Bangladesh Bank do not include Other Comprehensive Income or
the elements of Other Comprehensive Income allowed to include in a Other Comprehensive Income (OCI) Statement. As such
the company does not prepare the other comprehensive income statement. However elements of OCI, if any, are shown in the
statements of changes in equity. Furthermore, the above templates require disclosure of appropriation of profit on the face of
Profit and Loss Statement.
vi) Financial instruments – presentation and disclosure

In several cases Bangladesh Bank guidelines categorize, recognize, measure and present financial instruments differently from
those prescribed in IFRS 9. As such some disclosure and presentation requirements of IFRS 7 and IAS 32 cannot be made in the
accounts.
vii) Repo transactions

IFRS: When an entity sells a financial asset and simultaneously enters into an agreement to repurchase the asset (or a similar
asset) at a fixed price on a future date (repo or stock lending), the arrangement is accounted for as a deposit, and the underlying
asset continues to be recognized in the entity’s financial statements. This transaction will be treated as loan and the difference
between selling price and repurchase price will be treated as interest expense.
Bangladesh Bank: As per DOS Circular letter no. 06 dated 15 July 2010 and subsequent clarification in DOS Circular No. 02
dated 23 June 2013, when a bank sells a financial asset and simultaneously enters into an agreement to repurchase the asset
(or a similar asset) at a fixed price on a future date (repo or stock lending), the arrangement is accounted for as a normal sales
transactions and the financial assets are derecognized in the seller’s book and recognized in the buyer’s book.
viii) Financial guarantees

IFRS: As per IFRS 9, financial guarantees are contracts that require an entity to make specified payments to reimburse to 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 recognized initially at their fair value, and the initial fair value is amortized over the
life of the financial guarantee. The financial guarantee liability is subsequently carried at the higher of this amortized 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 circular no. 14 dated 25 June 2003 financial guarantees such as L/C, L/G will be treated as
Off-Balance Sheet items. No liability is recognized for the guarantee except the cash margin and 1% general provision for all
contingent liabilities.
ix) Cash and cash equivalent
IFRS: Cash and cash equivalent items should be reported as cash item as per IAS 7.

Bank Asia Limited
Notes to the
Bangladesh Bank: As per BRPD Circular 14 dated 25 June 2003, Cash and cash-equivalents consist of cash with Bangladesh Bank,
with its agent bank(s), government securities (prize bond) and deposits with other banks.
x) Non-banking asset
IFRS: No indication of Non-banking asset is found in any IFRS.
Bangladesh Bank: As per BRPD circular no. 14 dated 25 June 2003 there must exist a face item named Non-banking asset.
xi) Cash flow statement
IFRS: Cash flow statement can be prepared either in direct method or in indirect method as per IAS 7 of Statement of Cash Flows.
The presentation is selected to present these cash flows in a manner that is most appropriate for the business or industry. The
method selected is applied consistently.
Bangladesh Bank: As per BRPD circular no. 14 dated 25 June 2003 cash flow is the mixture of direct and indirect method.
xii) Balance with Bangladesh Bank: (CRR)
IFRS: Balance with Bangladesh Bank should be treated as other asset as it is not available for use in day to day operations as per IAS 7.

Bangladesh Bank: Balance with Bangladesh Bank is treated as cash and cash equivalents.
xiii) Presentation of intangible asset
IFRS: Intangible asset must be identified and recognized, and the disclosure must be given as per IAS 38

Bangladesh Bank: There is no requirement for regulation of intangible assets in BRPD circular no. 14 dated 25 June 2003.
xiv) Off-balance sheet items
IFRS: There is no concept of off-balance sheet items in any IFRS; hence there is no requirement of disclosure of off-balance sheet
items.

Bangladesh Bank: As per BRPD circular no. 14 dated 25 June 2003 off balance sheet items must be disclosed separately in face
of balance sheet. Accordingly the Bank has recognized the following off balance sheet items:
- Acceptances and endorsements
- Letters of guarantee
- Irrevocable letters of credit
- Bills for collection
- Foreign exchange contracts
xv) Disclosure of appropriation of profit
IFRS: There is no requirement to show appropriation of profit in the face of statement of comprehensive income.

Bangladesh Bank: As per BRPD circular no. 14 dated 25 June 2003, an appropriation of profit should be disclosed in the face of
profit and loss account.
xvi) Loans and advance net of provision
IFRS: Loans and advances should be presented net of provisions.
Bangladesh Bank: As per BRPD circular no. 14 dated 25 June 2003 provision on loans and advances are presented separately as
liability and cannot be netted off against loans and advances.
xvii) Recognition of Interest in Suspense
IFRS: Loans and advances to customers are generally classified as “loans and receivables” as per IFRS 9 and interest income
is recognised through effective interest rate method over the term of the loan. Once a loan is impaired , interest income is
recognised in profit and loss account on 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 , interest on such loans are not
allowed to be recognised as income, rather the corresponding amount needs to be credited to an interest in suspense account,
which is presented as liability in balance sheet.
xviii) Uniform Accounting Policy
In several cases Bangladesh Bank and Bangladesh Securities and Exchange Commission guidelines categorize, recognize,
measure and present financial instruments differently from those prescribed in IFRS 10. As such some disclosure, presentation
284
Notes to the
and measurement requirements of IFRS 10 cannot be made in financial statements.
(Also refer to note 3.20 Compliance of IFRSs)
2.2 Basis of measurement
The financial statements of the Bank have been prepared on historical cost basis except for the following:
- Government Treasury Bills and Bonds designated as ‘Held for Trading (HFT)’ at present value using marked to market with gains,
if any, credited to revaluation reserve.
- Government Treasury Bills and Bonds designated as ‘Held to Maturity (HTM)’ at present value using amortisation
concept.
- Zero Coupon Bonds at present value using amortisation concept.
2.3 Use of estimates and judgments
The preparation of the financial statements in conformity with IAS/ IFRS requires management to make judgments, estimates and
assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses.
Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions
to accounting estimates are recognised in the period in which the estimate is revised and in any future periods affected.
Key estimates include the following:

- Provision on loans and advances
- Deferred tax assets/liabilities
- Gratuity fund
2.4 Foreign currency transactions
Functional and presentation currency
These financial statements are presented in Bangladesh Taka (BDT), which is the Bank’s functional currency. Functional currencies
for Off-shore banking unit and BA Express USA Inc. are US Dollar, BA Exchange Company (UK) Limited is UK Pound. Except as
indicated, financial information have been rounded off to the nearest Taka.
Foreign currency translation

Foreign currency transactions have been converted into equivalent Taka currency at the ruling exchange rates on the respective date
of such transactions as per IAS 21 “The Effects of Changes in Foreign Exchange Rates”.
In preparing solo financial statements, assets and liabilities in foreign currencies as at December 31, 2018 have been converted into
Taka currency at the revaluation rate determined by the Bank. For BA Exchange Company (UK) Limited and BA Express USA Inc.
assets and liabilities in foreign currencies as at December 31, 2018 have been converted into Taka currency at the closing rate as on
December 31, 2018 and profit and loss accounts have been converted into monthly average rate.
Differences arising through buying and selling transactions of foreign currencies on different dates of the year have been adjusted
by debiting /crediting exchange gain or loss account. Foreign currency translation gain and loss for foreign subsidiary operation is
reported as separate component of Equity.
Commitment
Commitments for outstanding forward foreign exchange contracts disclosed in the consolidated financial statements and financial
statements of Bank have been translated at contracted rates. Contingent liabilities/commitments for letter of credit, letter of
guarantee and acceptance denominated in foreign currencies have been expressed in Taka currency at the rate of revaluation rate.

Translation gain and losses
Gains or losses arising out of translation of foreign exchange have been included in the Profit and Loss Statement, except those
arising on the translation of net investment in foreign subsidiaries.

Foreign operations
The results of financial statements of the Bank whose functional currency is not Bangladesh Taka are translated into Bangladesh
Taka as follows:
a. assets and liabilities for each statement of Balance Sheet have been translated at the closing rate on the date of Balance sheet.
b. income and expenses for Profit and Loss Statement have been translated at monthly average rate; and
c. all resulting exchange differences have been recognized as a separate components of equity.
2.5 Basis of consolidation

The financial statements of the Bank’s include the financial statements of main operation of Bank Asia Limited and its two business
units namely, Islamic Banking Unit and Off-shore Banking Unit operating in Bangladesh.

Bank Asia Limited
Notes to the
The consolidated financial statements include the financial statements of the Bank and three subsidiary companies namely,
Bank Asia Securities Limited operating in Bangladesh , BA Exchange Company (UK) Limited operating in United Kingdom and BA
Express USA Inc. operating in USA.
The consolidated financial statements have been prepared in accordance with International Accounting Standard 27: Separate
Financial Statements and International Financial Reporting Standard 10: Consolidated Financial Statements. The consolidated as
well as separate financial statements are prepared for a common financial year ended on December 31.
Consolidated financial statements and separate financial statements of the Bank comprise of Balance Sheet, Profit and Loss
Statement, Cash Flow Statement, Statement of Changes in Equity, Liquidity Statement and relevant notes and disclosures.

2.5.1 Subsidiaries of the Bank
A subsidiary company is one in which the parent company, Bank Asia Limited owns majority of its shares. As an owner of the
subsidiary, the Bank controls the activities of the subsidiary. Bank Asia Limited has three subsidiary companies as detailed below:
Date of
Country of Year
Name of Subsidiary Ownership Commercial Status Regulator
Operation Closing
Operation
Bank Asia Securities Limited 99.99% 17.04.2011 Bangladesh Majority BSEC, Bangla- 31 December
Owned desh
BA Exchange Company (UK) 100% 16.05.2011 United Kingdom Fully Owned FSA, UK 31 December
Limited
BA Express USA inc 100% 01.06.2014 United States of Fully Owned NYSDFS, 31 December
America New York
2.6 Cash flow statement

Cash Flow Statement is prepared principally in accordance with IAS 7 “ Statement of Cash Flows” under the guidelines of BRPD
circular no.14 dated 25 June 2003. The Cash Flow Statement shows the structure of and changes in cash and cash equivalents
during the year. It Cash Flows during the period have been classified as operating activities, investing activities and financing
activities.
2.7 Statement of changes in equity

Statement of Changes in Equity has been prepared in accordance with IAS 1 “Presentation of Financial Statements” and following
the guidelines of Bangladesh Bank BRPD circular no.14 dated 25 June 2003.
3 SIGNIFICANT ACCOUNTING POLICIES
The accounting policies set out below have been applied consistently to all the periods presented in these financial statements
and have been applied consistently by the Bank.
3.1 Assets and basis of their valuation
3.1.1 Cash and cash equivalents
Cash and cash equivalents include cash in hand and balances with Bangladesh Bank and its agent bank, balances with other
banks and financial institutions, money at call and on short notice and prize bonds.
3.1.2 Investments
Investment in securities
All investments in securities (bills and bonds) are initially recognized at purchase price excluding commission and accrued coupon
interest. Investments are segregated in two broad categories. These are held to maturity (HTM) and held for trading (HFT).
Held to maturity
Debt securities that a firm has intention to hold until maturity. These are reported at amortized cost therefore, they are not
affected by swings in the financial markets.
Held for trading
Held for trading securities are those which are held with intention of selling in order to generate profits. Held for trading securities
are revalued at market price.
Revaluation
As per Bangladesh Bank DOS circular letter no. 5 dated 28 January 2009, HFT securities are revalued each week using Marked to
Market concept and HTM securities are amortized once a year according to Bangladesh Bank guidelines. The HTM securities are
286
Notes to the
also revalued if these are reclassified to HFT category with the Board approval. Value of investment has been shown as under:
Government treasury bills and
At present value (using marked to market concept)
bonds (HFT)
Government treasury bills and
At present value (using amortisation concept)
bonds (HTM)
Zero coupon bonds At present value (using amortisation concept)
Prize bonds and other bonds At cost
Debentures At cost
Unquoted shares (ordinary) At cost (as per BRPD circular 14 dated June 25, 2003 )
At cost (provision made for any shortfall arising due to reduce market price
Quoted shares (ordinary)
from cost price)
3.1.3 Investment in listed securities
These securities are bought and held primarily for the purpose of selling them in future or held for dividend income which are
reported at cost. Unrealised gains are not recognised in the profit and loss statement. But provision was made for diminution in
value of investment.
3.1.4 Investment in unquoted securities
Investment in unlisted securities is reported at cost under cost method. Adjustment is given for any shortage of book value over
cost for determining the carrying amount of investment in unlisted securities.
As per Bangladesh Bank DOS Circular # 04 dated 24 November 2011, provision for diminution in value of investment was made by
netting off unrealilsed gain/ loss of shares from market price/ book value less cost price.
Besides, bank complied with Bangladesh Bank BRPD Circular 14 dated June 25, 2003 as follows, “All investments in shares and
securities (both dealing and investment) should be revalued at the year- end. The quoted shares should be valued as per market
price in the stock exchange(s) and unquoted shares as per book value of last audited balance sheet. Provision should be made for
any loss arising from diminution in value of investments.”
3.1.5 Investment in subsidiary
Investment in subsidiary is accounted for under the cost method of accounting in the Bank’s financial statements in accordance
with the IAS 27 “Separate Financial Statements”, IFRS 3 “Business Combination”, IFRS 36 “Impairment of Assets” and IFRS 10
“Consolidated Financial Statements”.
3.1.6 Loans and advances/investments

a) Loans and advances/investments are stated in the balance sheet on gross basis.
b) Interest/profit is calculated on daily product basis, but charged and accounted for quarterly on accrual basis. Interest/
profit on classified loans and advances/investments is kept in interest suspense account as per BRPD circulars no. 14 dated
September 23, 2012 on Master Circular: Loan Classification and Provisioning. Interest/ profit is not charged on bad and
loss loans and advances/ investments as per guidelines of Bangladesh Bank. Records of such interest amounts are kept in
separate memorandum accounts.
c) Commission and discounts on bills purchased and discounted are recognised at the time of realisation.
d) Provision for loans and advances/investments is made based on the arrear in equivalent month and reviewed by the
management following instructions contained in Bangladesh Bank BRPD circulars/letters no. 16 dated 06 December 1998,
9 dated 14 May 2001, 9 and 10 dated 20 August 2005, 8 dated 07 August 2007, 10 dated 18 September 2007, 14 dated 23
September 2012, 19 dated 27 December 2012, 5 dated 29 May 2013, 16 dated 18 November 2014, 8 dated 02 August 2015,
12 dated 20 August 2017, 15 dated 27 September 2017, 01 dated 03 January 2018, 01 dated 20 February 2018, 01 dated 06
February 2019, 03 dated 21 April 2019 and 05 dated 16 May 2019.

Bank Asia Limited
Notes to the
Rates of provision on loans and advances/investments are given below:
Provision
Types of loans and advances
STD SMA SS DF BL
House finance 1% 1% 20% 50% 100%
Consumer Loans for professionals 2% 2% 20% 50% 100%
Other than housing finance & professionals to setup business 5% 5% 20% 50% 100%
Provision for loan to broker house, merchant banks, stock dealers, etc 2% 2% 20% 50% 100%
Short-term agri-credit and micro credit 1% 1% 5% 5% 100%
Small and medium enterprise finance 0.25% 0.25% 20% 50% 100%
Others 1% 1% 20% 50% 100%
In line with Bangladesh Bank BRPD Circular no. 04 dated January 29, 2015, All restructured loans treated as Special Mention
Account (SMA) for the purpose of classification. Provision was made at existing applicable rate of SMA with additional 1%.
e) Loans and advances/investments are written off as per guidelines of Bangladesh Bank. These write off however will not
undermine/affect the claim amount against the borrower. Detailed memorandum records for all such write off accounts are
meticulously maintained and followed up.
f) The Bank has restructured (Large loan restructure) certain loan facilities of M/s. Samannaz Super Oil Limited, S. A. Oil Refinery
Limited, Abdul Monem Sugar Refinery Limited and Shinepukur Ceramics Limited under BRPD Circular No. 04 dated 29 January
2015. As of December 31, 2019 total outstanding amount was Tk. 3,950.22 million as per the terms and conditions of the
said circular. Out of these facilities M/s. Samannaz Super Oil Limited and S. A. Oil Refinery Limited is now under Solenama
(Compromise Agreement submitted before the Court) as unclassified with outsanding amount Tk 3,225.22 million.
g) In stay order cases the unclassified loans and advances include certain customer accounts with an aggregate outstanding amount
of Tk.2,483.98 million which have not been reported under classification as at 31 December 2019 on the basis of stay order from
the Honorable High Court Division of the Supreme Court of Bangladesh. An aggregate amount of Tk. 1,037.57 million has been
kept as general provision against those customers.
3.1.7 Impairment of financial assets
An asset is impaired when its carrying value exceeds its recoverable amount as per IAS 36 “Impairment of Assets”. At each balance
sheet date, Bank Asia Limited assesses whether there is objective evidence that a financial asset or a group of financial assets i.e,
loans and advances, off balance sheet items and investments is impaired. A financial asset or group of financial assets is impaired and
impairment losses are incurred if -
there is objective evidence of impairment as a result of a loss event that occurred after the initial recognition of the asset up to the
balance sheet date;

the loss event had an impact on the estimated future cash flows of the financial asset or the group of financial assets; and
a reliable estimate of the loss amount can be made.
In the event of impairment loss, the Bank reviews whether a further allowance for impairment should be provided in the profit and
loss statement in addition to the provision made based on Bangladesh Bank guidelines or other regulatory requirements.

3.1.8 Property, plant and equipment
Recognition and measurement
All fixed assets are stated at cost less accumulated depreciation as per IAS 16 “Property, Plant and Equipment”. Land is measured at
cost.
The cost is the amount of cash or cash equivalents paid or the fair value 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 when initially recognised in
accordance with the specific requirements of the IFRS.
The cost of an item of property, plant and equipment is recognised 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.
The cost of an items of property, plant and equipement comprises:
(a) its purchase price, including import duties and non- refundable purchase taxes, after deducting trade discounts and rebates
288
Notes to the

(b) any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in
the manner intended by management
(c) the initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located, the
obligation for which an entity incurs either when the item is acquired or as a consequence of having used the item during a
particular period for purpose other than to produce inventories during that period.

Subsequent costs
The cost of replacing part of an item of fixed assets is recognised in the carrying amount of the item if it is probable that the
future economic benefits embodied within the part will flow to the company and its cost can be measured reliably. The carrying
amount of the replaced part is derecognised. The costs of the day-to-day servicing of fixed assets are recognised in profit or loss
as incurred.
Depreciation
No depreciation is charged on land. Depreciation is charged on straight-line method. Charging depreciation against fixed
assets commences from the month of acquisition (for full month) and ceases at the month when the assets are disposed. Asset
category-wise depreciation rates are as follows:
Category of assets Rate of depreciation
Building 5%
Furniture and fixtures 20%
Equipment 20%
Computers and accessories 20%
Motor vehicles 20%
Gain or loss on sale of fixed assets is recognised in profit and loss statement as per provision of IAS 16 “Property, Plant and
Equipment”.

Construction work in progress/Building under Construction
Building under construction is recognized and reported under Fixed Assets as per IAS 16 “ Property, Plant and Equipment” as
Construction work in progress until the construction work is completed and the assets is ready for intended use. This asset is
stated at cost and depreciation of the asset will be charged from the date of its intended use.

Intangible Asset
a. Goodwill
Goodwill that arises upon the acquisition of subsidiaries is included in intangible assets. Acquisitions of Minority interest (non-
controlling interest) are accounted as transactions with equity holders in their capacity as equity holders and therefore no goodwill is
recognised as a result of such transactions. Subsequently goodwill is measured at cost less accumualted Impairment Losses.
b. Software
Software acquired by the Bank is stated at cost less accumualted amortisation and accumulated impairment losses.

c. License
Value of license is recognised at cost and since it has an indefinite useful life it is not amortized. The value of the license is not
measured at fair value.
3.1.9 Leased assets
The Bank has applied “ IFRS 16: Lease” using the modified retrospective approach and therefore the comparative information has
not been restated and continues to be reported under IAS 17 and IFRIC 4.
3.1.10 Impairment of fixed assets
At each balance sheet date, the Bank assesses whether there is any indication that the carrying amount of an asset exceeds
its recoverable amount. An asset is carried at more than its recoverable amount if its carrying amount exceeds the amount to
be recovered through use or sale of the asset. If this is the case, the asset is described as impaired and an impairment loss is
recognised as an expense in the profit and loss statement unless the asset is carried at revalued amount in accordance with
International Accounting Standard (IAS) 16, Property, Plant and Equipment in which case any impairment loss of a revalued
asset should be treated as a revaluation decrease under that Accounting Standard. No impairment loss was recognized up to the
reporting period as there were no such indication existed as on Balance Sheet date.

Bank Asia Limited
Notes to the
3.1.11 Investment properties
a) Investment property is held to earn rentals or for capital appreciation or both and the future economic benefits that are
associated with the investment property but not held for sale in the ordinary course of business.
b) Investment property is accounted for under cost model in the financial statements. Accordingly, after recognition as an asset,
the property is carried at its cost, less accumulated depreciation and accumulated impairment loss.
3.1.12 Other assets
Other assets include all other financial assets and include fees and other unrealised income receivable, advance for operating
and capital expenditure and stocks of stationery and stamps.

3.1.13 Inventories
Inventories are measured at the lower of cost and net realisable value.

3.2 Liabilities and provisions
3.2.1 Borrowings from other banks, financial institutions and agents
Borrowings from other banks, financial institutions and agents include interest-bearing borrowings redeemable at call and
Bangladesh Bank refinance. These items are brought to financial statements at the gross value of the outstanding balance.

3.2.2 Deposits and other accounts
Deposits and other accounts include non interest-bearing current deposit redeemable at call, bills payable, interest bearing on
demand and special notice deposits, savings deposit, fixed deposit and scheme deposit. These items are brought to financial
statements at the gross value of the outstanding balance.
As per IAS 37 “Provisions, Contingent Liabilities and Contingent Assets” the Bank recognizes provisions only when it has a
present obligation as a result of a past event and it is probable that an outflow of resources embodying economic benefits will be
required to settle the obligation and when a reliable estimate of the amount of the obligation can be made.
3.2.3 Other liabilities

As per IAS 37 “Provisions, Contingent Liabilities and Contingent Assets” the Bank recognises provisions only when it has a
present obligation as a result of a past event and it is probable that an outflow of resources embodying economic benefits will be
required to settle the obligation and when a reliable estimate of the amount of the obligation can be made.

Other liabilities comprise items such as provision for loans and advances/investments, provision for taxes, interest payable,
interest suspense, accrued expenses, obligation under finance lease etc. Other liabilities are recognised in the balance sheet
according to the guidelines of Bangladesh Bank, income tax laws and internal policy of the Bank.

3.3 Capital/shareholders’ equity
Authorised capital
Authorised capital is the maximum amount of share capital that the Bank is authorised by its Memorandum and Articles of
Association.
Paid-up capital
Paid up capital represents total amount of share capital that has been paid in full by the ordinary shareholders. Holders of
ordinary shares are entitled to receive dividends as declared from time to time and are entitled to vote at shareholders’ meetings.
In the event of winding-up of the company, ordinary shareholders rank after all other shareholders and creditors and are fully
entitled to receive any residual proceeds of liquidation.
Statutory reserve
Statutory reserve has been maintained @ 20% of profit before tax in accordance with provisions of section 24 of the Bank
Company Act 1991 (amended up to 2018) until such reserve equal to its paid-up capital together with the share premium.
Statutory reserve transferred in yearly basis.
Revaluation reserve
Revaluation reserve arises from the revaluation of Treasury bills and bonds (HFT and HTM) in accordance with the Bangladesh
Bank DOS circular no. 5 dated 26 May 2008. The tax effects on revaluation gain are measured and recognised in the financial
statements as per IAS 12: Income Taxes.
When an fixed asset’s carrying amount is increased as a result of revaluation, the increased amount has been credited directly to
equity under the head of revaluation reserve as per IAS 16 “ Property, Plant and Equipment”. The revaluation surplus included in
equity transferred directly to retained earnings with the amount of the surplus from the difference between depreciation based
on the revalued carrying amount of the asset and depreciation based on the asset’s original cost as per the para 41 of IAS 16.
290
Notes to the
Non-controling (minority) interest
Non-controling (minority) interest in business is an accounting concept that refers to the portion of a subsidiary company’s stock
that is not owned by the parent company. The magnitude of the minority interest in Bank Asia Securities Limited, a majority
owned subsidiary (99.99%) of Bank Asia Limited is very insignificant. Minority interest belongs to a sponsor Director of the
Bank and is reported on the consolidated balance sheet to reflect the claim on assets belonging to the other non-controlling
shareholder. Also, minority interest is reported on the consolidated income statement as a share of profit belonging to the
minority shareholder.
3.4 Contingent liabilities
Any possible obligation that arises from 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 result in the recognition of income which may never
be realised.
3.5 Memorandum items
Memorandum items are maintained for those items for which the Bank has only a business responsibility and no legal
commitment.
3.6 Revenue recognition
In line with IFRS 15 revenue and disclosure in the financial statements the income of the bank has been recognized as follows
Interest income
Interest on loans and advances is calculated on daily product basis, but charged and accounted for on quarterly basis. Interest
on loans and advances ceases to be taken into income when such advances fall under classification. It is then kept in interest
suspense account. Interest on classified loans and advances is accounted for on a cash receipt basis.

Profit on investment (Islamic Banking)
Mark-up on investment is taken into income account proportionately from Unearned Income account. Income/compensation on
classified investments is transferred to profit/rent/compensation/suspense account instead of income account.
Investment income
income on investments is recognised on accrual basis. Investment income includes discount on treasury bills and zero coupon
bonds, interest on treasury bonds, debentures and fixed deposits with other banks. Capital gain on investments in shares and
dividend on investment in shares are also included in investment income.
Interest and fees receivable on credit cards
Interest and fees receivable on credit cards are recognised on accrual basis. Interest and fees ceases to be taken into income when the
recovery of interest and fees is in arrear for over three months. Thereafter, interest and fees are accounted for on cash basis.
Fees and commission income
The Bank earns fees and commissions from diverse range of services provided to its customers. This includes fees and
commission income arising on financial and other services provided by the Bank including trade finance, credit cards, debit
cards, passport endorsement, loan processing, loan syndication and locker facilities, etc. Fees and commission income is
recognised on the basis of realisation.
Dividend income on shares
Dividend income from investment in shares is recognised when the Bank’s right to receive dividend is established. It
recognised when:
a. It is probable that the economic benefits associated with the transaction will flow to the entity; and
b. the amount of the revenue can be measured reliably.
Interest paid on borrowing and other deposits (conventional banking)
Interest paid and other expenses are recognised on accrual basis.
Profit paid on deposits (Islamic Banking)
Profit paid to mudaraba deposits is recognised on accrual basis according to Income Sharing Ratio (ISR).


Bank Asia Limited
Notes to the
Other operating expenses
All other operating expenses are provided for in the books of the account on accrual basis according to the IAS 1 “Presentation of
Financial Statements”.
3.7 Employee benefits
3.7.1 Provident Fund
Provident fund benefits are given to the staff of the Bank in accordance with the approved provident fund rules. The fund is
operated by a Board of Trustees. All confirmed employees of the Bank are contributing 10% of their basic salary as subscription of
the fund. The Bank also contributes equal amount of the employees’ contribution to the fund.
3.7.2 Gratuity Fund
Gratuity fund benefits are given to the eligible staff of the Bank in accordance with the approved gratuity fund rules. Gratuity
payable is determined on the basis of existing rules and regulations of the Bank and actuarial valuation.
3.7.3 Superannuation Fund
The Bank operates a superannuation fund for which provision is made annually as per actuarial valuation. The fund is operated
by a separate Board of Trustees.
3.7.4 Hospitalisation insurance
The Bank operates a health insurance scheme to its confirmed employees and their respective spouses and children at rates
provided in health insurance coverage policy.
3.7.5 Worker’s Profit Participation Fund
Consistent with the industry practice and in accordance with the Banking Companies Act, 1991, no provision has been made to WPPF

3.8 Provision for off-balance sheet exposures
In compliance with Bangladesh Bank guidelines off-balance sheet items have been disclosed under contingent liabilities. As
per BRPD circular no. 10 dated 18 September 2007, the Bank has maintain provision @ 1% against off-balance sheet exposures
complying BRPD Circular No. 07, dated 21 June 2018 and BRPD circular letter no. 01 dated 03 Jan 2018
3.9 Provision for nostro accounts
According to guidelines of Foreign Exchange Policy Department of Bangladesh Bank, circular no. FEOD (FEMO)/01/2005-677 dated 13
September 2005, Bank is required to make provision regarding the un-reconciled debit balance as at balance sheet date.
3.10 Taxation
Income tax expense comprises current and deferred tax. Current tax and deferred tax are recognised in profit or loss except to the
extent that it relates to items recognised directly in equity.
Current tax
Current tax is the expected tax payable or receivable on the taxable income or loss for the period, using tax rates enacted or
substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years.
Deferred tax
Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for financial
reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognised for the temporary differences
relating to the initial recognition of goodwill, 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, and differences relating to investments in subsidiaries
to the extent that it is probable that they will not reverse in the foreseeable future. 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 realized simultaneously.
A deferred tax asset is recognised for unused 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 is recognised directly in revaluation
reserve as a part of equity and is subsequently recognised in profit and loss statement on maturity of the security.
3.11 Earnings Per Share
Earnings per share (EPS) has been computed by dividing the basic earnings by the weighted average number of ordinary shares
outstanding at 31 December 2018 as per International Accounting Standard (IAS) - 33 “Earnings Per Share”. EPS for comparative
period also restated by the bonus share issued for the year 2018. Details are in note 37.
292
Notes to the
Basic earnings
This represents earnings for the year attributable to ordinary shareholders. Net profit after tax has been considered as fully
attributable to the ordinary shareholders.
Weighted average number of ordinary shares
This represents the number of ordinary shares outstanding at the beginning of the year plus the number of ordinary shares issued
during the year.
The basis of computation of number of shares is in line with the provisions of IAS 33 “Earnings per share”. The logic behind this
basis is, that the bonus shares are issued to the existing shareholders without any consideration, and therefore, the number of
shares outstanding is increased without an increase in resources generating new earnings.
Diluted earnings per share
No diluted earnings per share is required to be calculated for the year as there was no scope for dilution during the year under
review. It is pertinent to mention that, potential ordinary shares is in convertible subordinate bond that may entitle their holders
to ordinary shares.
3.12 Reconciliation of inter-bank/inter-branch account
Books of account with regard to inter-bank (in Bangladesh and outside Bangladesh) are reconciled on monthly basis and there
are no material differences which may affect the financial statements significantly.
Un-reconciled entries in case of inter-branch transactions as at the reporting date are not material.
3.13 Risk Management at Bank Asia Ltd.
Being a financial institution, in the ordinary course of business, the bank is sensitive to verities of risks. The generic severity of
such risk(s) is much intense in our locality due to presence of large number of banks and complex financial transactions. In such
highly competitive environment to ensure a bank’s consistent system and performance, the presence of strong Risk Management
culture is obligatory.
The Board of Director and Senior Management of the bank need to remain positive toward adaptation of active risk management
culture throughout the bank. Such awareness (risk) has helped the bank to do more than just regulatory compliance as far as risk
management practice is concerned, the consequence of such initiatives has helped the bank to safeguard valuable capital and
ensure consistent profitability, through avoiding excessive credit, market and operation loss and inadequate capital allocation
under Basel III. Being compliant, the bank is now looking forward to take risk management practice to a different level, i.e.
preventing risk before occurrence rather than a reactive manner; on a proactive basis.
As a part of regulatory and global benchmarking the bank has based upon 06 (six) core risks guidelines of Bangladesh Bank and
Basel framework. Listed below are the identified risks the bank is currently managing or intents to manage in the future:
Sl Core Risk Guideline of BB Basel Accord Pillar
1 Credit Risk Credit Risk Pillar - I
2 Foreign Exchange Risk Market Risk
3 Asset Liability Risk Operational Risk
4 Money Laundering Risk Residual Risk Pillar - II
5 Internal Control & Compliance Risk Credit Concentration Risk Pillar –II
6 Information and Communication Technology Risk Liquidity Risk Pillar –II
7 Interest Rate Risk in Banking Book Pillar –II
8 Settlement Risk Pillar –II
9 Reputation Risk Pillar –II
Environmental and climate
10 Pillar –II
change risk
11 Strategic Risk Pillar –II
12 Pension Obligation Risk Pillar –II
13 Compliance Risk Pillar –II
In view of core risk guideline the bank has established various departments to address specific risks, e.g. credit risk management,
credit admin, internal control and compliance department, anti-money laundering department etc. Further to manage the
overall risks of the bank in line of Basel the bank has formed a dedicated Risk Management Division.
Accordingly the bank has various high powered committees to monitor and ensure smooth risk management activities. For
example, Senior Management Team (SMT), Asset Liability Committee (ALCO), Credit Committee (CC), Audit Committee, Executive
Risk Management Committee, Supervisory Review Process Team etc.
The current risk management framework of the bank is as follow:

Bank Asia Limited
Notes to the
Credit Risk Management: Credit risk can be defined as risk of failure of customer/counterparty of the bank to meet financial
obligations. Another major source of credit risk could be concentration risk, which arises when a bank’s credit portfolio tend to
be non diversified i.e. large single borrower exposure or lending exposure to clients having similar economic factors (single sub-
sector, industry, geographic region etc) that would adversely impact the repayment ability of mass obligor during any possible
economic downturn.
To ensure the portfolio health, the bank has distributed the overall credit concentration among different segments/industry/
trading. For example, branches are primarily responsible for sourcing of potential clients and initiate limit (credit) approval
process for review of Credit Risk Management Division (CRMD), this division (CRMD) ensure the quality of credit proposal before
limit approval, a separate division known as Credit Administration (CAD) monitors the documentation aspects of approved
credits and finally the Legal Recovery Department manages the deteriorating accounts. It is mentionable that the bank has own
credit risk management guideline.
All other remaining risk in regards to credit portfolio are addressed by the Risk Management Division (RMD), the primary
responsibility of this Division is to identify and assess the severity of risks and highlight the same to the management for strategic
decision making. Below are risk wise list of few global model that RMD is currently using or intends to use in the future:
Residual Risk (e.g. wrong valuation of collateral, Capital computation under Pillar –II using the foundation Internal
documentation error etc) Rating Based (FIRB) approach
Concentration Risk Herfindahl-Hirschman Index ( HHI) index, Shannon's Index (SI) and
Gini coefficient (GI)
Foreign Exchange Risk Management: The Foreign Exchange Risk arises from transaction involvement in any other national
currency. Providing major foreign exchange related transactions are carried out on behalf of client thus bank has minimal
exposure to the captioned risk. It is mentionable that the bank do not involve in any speculative transactions.
The treasury division independently conducts the transactions and back office is responsible for verifying the deal and passes
necessary accounting entries. As advised by Bangladesh Bank on month end all foreign exchange related transactions are
revalued at mark-to-market rate. All Nostro accounts are reconciled on daily basis and outstanding entries beyond 30 days are
reviewed by management for settlement. It is mentionable that bank management is looking forward to establish treasury mid
office to effectively perform the reconciliation activities.
At present Bank assess daily Value-at-Risk (VaR) based on exponential weighted average method using web based platform for
foreign exchange risk more effectively.
Asset Liability Management: The Asset Liability Risk is comprises of Balance Sheet Risk and liquidity risk. The Balance Sheet
risk refers to risk of change in earning and/or devaluation of asset due to interest rate movement. The liquidity risk can be defined
as the risk or chance of failure to meet up any withdrawal/disbursement request by a counterparty/client. ALCO reviews liquidity
requirements of the Bank, maturity of assets and liabilities, deposit and lending pricing strategy and the liquidity contingency
plan. The Asset Liability Committee also monitors balance sheet risk.
Risk assessment tools in regards to ALM risk management are as follow:
Equity investment risk Value-at-risk (VaR) on equity position
Liquidity Coverage Ratio (LCR)
Liquidity Risk Net Stable Funding Ratio (NSFR)
Stress Testing (Duration and Sensitivity Analysis)
Interest Rate Risk Assessment of Interest Rate Risk in Banking Book
Prevention of Money Laundering: Money laundering risk is defined as the loss of reputation and expenses incurred as penalty
for being negligent in prevention of money laundering. For mitigating the risks, the Bank has nominated a Chief Compliance
Officer at Corporate Office and Branch Compliance Officers at branches, who independently review the accounting transactions
to locate and verify suspicious transactions. Know Your Customer (KYC) policy and Transaction Profile (TP) format have been
introduced. The regulatory requirements are being complied with and the guidelines in respect of KYC are being followed for
opening of new accounts. Training is being provided continuously to all the categories of executives and officers for developing
awareness and skill for identifying suspicious activities.
Ensuring internal control and compliance: Operational loss arising from error and fraud due to lack of proper internal control
and compliance. Internal Control and Compliance Department undertakes periodical and special audit and inspection of the
branches and departments at corporate office for identifying and reviewing the operational lapses and compliance of statutory
requirements as well as Bank’s own guidelines. The Audit Committee of the Board reviews the audit and inspection reports
periodically and provides necessary instructions and recommendations for rectifications of lapses and observations identified by
the audit team.
294
Notes to the
Further to above the bank is in the process of developing various globally recognized operational risk identification processes
through the Risk Management Division. For example adaptation of
Risk Control Self Assessment (RCSA) for assessing all possible operational risks based on operational process review and previous
experiences before occurrence of any such event.
Using the Key Risk Indicator (KRI) approach to identify operational risk trigger points.
Managing Information and communication Technology Risk : Bank Asia Limited follows the guideline stated in DFIM circular
no. 6 dated 21 June 2010 regarding “Guideline on ICT Security for Banks and Financial Institutions, April 2010”. IT management
deals with IT policy documentation, internal IT audit, training etc. The core objective of IT management is to achieve the highest
levels of technology service quality and minimize possible operational risk. Physical security involves providing environmental
safeguards as well as controlling physical access to equipment and data. IT department has controls over Password, User ID
maintenance, input control, network security, virus protection, internet and e-mail. Data centre has been set up and disaster
recovery plan has been formulated as part of Business Continuity Planning (BCP).
All other risk management: These are risks that are not directly covered by core risk guidelines of Bangladesh Bank, more
precisely additional risk under Pillar II of Basel III. The Risk Management Division is primarily responsible for assessing and
developing controls for managing these risks. In order to do so the RMD of the bank is performing various exercises like
assessment of quality Risk Weighted Assets of the Bank, Stress Testing to assess the sensitivity of the bank against adverse
scenarios is performed, additional capital (on top of MCR under Pillar –II) will be assessed using a model namely Internal Capital
Adequacy Assessment Process (ICAAP), perform the capital reporting model etc.
On top of assessment the RMD of the bank is reporting these risks to senior management (through BRMC); which are ultimately
aiding the bank to allocate adequate capital in line with Basel III requirement and at the same time implant active strategies to
precisely manage all potential risks of the bank.
3.14 Events after reporting period

As per IAS -10 “Events after Reporting Period” are those events, favourable and unfavourable, that occur between the end of the
reporting period and the date when the financial statements are authorised for issue. Two types of events can be identified:
(a) those that provide evidence of conditions that existed at the end of the reporting period (adjusting events after the reporting
period); and
(b) those that are indicative of conditions that arose after the reporting period (no adjusting events after the reporting period).
3.15 Related party disclosures

A party is related to the company if:
(i) directly or indirectly through one or more intermediaries, the party controls, is controlled by, or is under common control with,
the company; has an interest in the company that gives it significant influence over the company; or has joint control over the
company;
(ii) the party is an associate;
(iii) the party is a joint venture;
(iv) the party is a member of the key management personnel of the Company or its parent;
(v) the party is a close member of the family of any individual referred to in (i) or (iv);
(vi) the party is an entity that is controlled, jointly controlled or significantly influenced by or for which significant voting power in
such entity resides with, directly or indirectly, any individual referred to in (iv) or (v); or
(vii) the party is a post-employment benefit plan for the benefit of employees of the company, or of any entity that is a related
party of the company.
3.16 Directors’ responsibilities on statement

The Board of Directors takes the responsibilities for the preparation and presentation of these Financial Statements.
3.17 Segment Reporting

As per IFRS 8 “Operating Segments”, is a component of an equity:
(a) that engages in business activities from which it may earn revenues and incur expenses (including revenues and expenses
relating to transactions with other components of the same entity)
(b) whose operating results are regularly reviewed by the entity’s chief operating decision maker to make decisions about
resources to be allocated to the segment and assess its performances, and
(c) for which discrete financial information is available.
Bank Asia Limited
Notes to the
Bank reported its segments in respect of business segment and geographical segment. Business segments are comprised of
Conventional Banking, Islamic Banking, Off-shore Banking, Bank Asia Securities Limited, BA Exchange Company (UK) Limited
and BA Express USA Inc. Geographical segments report consist of location wise performance of above segments.
3.18 Changes in Accounting Policies

As per IAS 8 “ Accounting Policies, Changes in Accounting Estimates and Errors” Accounting Policies are applied consistently
for comparability between financial statements of different accounting periods. Changes in Accounting Policies are applied
retrospectively in the financial statements. Comparative amounts presented in the financial statements affected by the change in
accounting policy for each prior period presented.
3.19 IFRS 15 - Revenue from Contract with Customers

IFRS 15 “Revenue from Contracts with Customers” replaces IAS 18 Revenue and IAS 11 Construction Contracts. IFRS 15 establishes
a more systematic approach for revenue measurement and recognition by introducing a five-step model governing revenue
recognition. The five-step model includes: 1) identifying the contract with the customer, 2) identifying each of the performance
obligations included in the contract, 3) determining the amount of consideration in the contract, 4) allocating the consideration
to each of the identified performance obligations and 5) recognising revenue as each performance obligation is satisfied. The
Bank has consistently applied the accounting policies as set out in Note 3 to all periods presented in these financial statements.
3.20 Compliance checklist of International Accounting Standards (IASs)/International Financial

Reporting Standards (IFRSs)
Name of the standards Ref. Status
First-time Adoption of Bangladesh Financial Reporting Standards IFRS - 1 N/A
Share Based Payment IFRS - 2 N/A
Business Combinations IFRS - 3 Complied
Insurance Contracts IFRS - 4 N/A
Non-current Assets Held for Sale and Discontinued Operations IFRS - 5 N/A
Exploration for and Evaluation of Mineral Resources IFRS - 6 N/A
Financial Instruments: Disclosures IFRS - 7 Complied
Operating Segments IFRS - 8 Complied
Financial Instruments: Recognition and Measurement IFRS - 9 Complied
Consolidated Financial Statements IFRS-10 Complied
Joint Arrangements IFRS-11 N/A
Disclosure of Interests in other entities IFRS-12 N/A
Fair Value Measurement IFRS-13 Complied
Regulatory Deferral Accounts IFRS-14 N/A
Revenue from Contracts with Customers IFRS-15 Complied
Leases IFRS-16 Complied
Presentation of Financial Statements IAS - 1 Complied
Inventories IAS - 2 Complied
Statement of Cash Flows IAS - 7 Complied
Accounting Policies, Changes in Accounting Estimates and Errors IAS - 8 Complied
Events after the Reporting Period IAS-10 Complied
Income Taxes IAS-12 Complied
Property, Plant and Equipment IAS-16 Complied
Employee Benefits IAS-19 Complied
Accounting for Government Grants and Disclosure of Government Assistance IAS-20 Complied
The Effects of Changes in Foreign Exchange Rates IAS-21 Complied
Borrowing Costs IAS-23 Complied
Related Party Disclosures IAS-24 Complied
Accounting and Reporting by Retirement Benefit Plans IAS-26 N/A
Separate Financial Statements IAS-27 Complied
Investments in Associates and Joint Ventures IAS-28 Complied
Financial Instruments: Presentation IAS-32 Complied
296
Notes to the
Earnings Per Share IAS-33 Complied
Interim Financial Reporting IAS-34 Complied
Impairment of Assets IAS-36 Complied
Provisions, Contingent Liabilities and Contingent Assets IAS-37 Complied
Intangible Assets IAS-38 Complied
Investment property IAS-40 Complied
Agriculture IAS-41 N/A
3.21 New and amended standards and interpretations:

IFRS 16 Leases
The Bank has applied “ IFRS 16: Lease” using the modified retrospective approach as per paragraph C8 of IFRS 16 with necessary
adjustment as stated in IAS 8 and therefore the comparative information has not been restated and continues to be reported
under IAS 17 and IFRIC 4 . IFRS 16 supersedes IAS 17 and applicable from January 01, 2019.
Leases previously classified as operating leases
a) Bank Asia recognise a lease liability at the date of initial application for leases previously classified as an operating lease
applying IAS 17 and measure that lease liability at the present value of the remaining lease payments, discounted using incre-
mental borrowing rate at 9% at the date of initial application i.e. January 01, 2019.
b) recognise a right-of-use asset at the date of initial application for leases previously classified as an operating lease applying
IAS 17 and choose, on a lease-by-lease basis, to measure that right-of-use asset ; an amount equal to the lease liability, adjusted
by the amount of any prepaid or accrued lease payments relating to that lease recognised in the statement of financial position
immediately before the date of initial application.
The right of use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease
payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and
remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.
The right of use asset is depreciated using the straight line methods from the commencement date to the earlier of the end of
the useful life of the right of use asset or the end of the lease term. The right of use asset is reduced by impairment losses as per
IAS 36, and adjusted for certain measurements of the lease liability if any.
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date
and discounted using the incremental borrowing rate.
The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in
future lease payments arising from a change in an index or rate, if there is change in estimate of the amount expected to be payable
under a residual value guarantee, or if changes its assessment of whether it will exercise purchase, extension or termination option.
When the lease liability is measured in this way, a corresponding adjustment is made to the carrying amount of the right to use
asset, or is recorded in profit or loss if the carrying amount of the right of use asset has been reduced to zero.
The Bank may elect not to apply the IFRS 16 for short-term leases and leases for which the underlying asset is of low value.
3.22 Approval of financial statements
The financial statements were approved by the Board of Directors on March 22, 2020.
3.23 General
(i) Figures relating to the previous year included in this report have been rearranged, wherever considered necessary, to make
them comparable with those of the current year without, however, creating any impact on the operating result and value of
assets and liabilities as reported in the financial statements for the current year.
(ii) Figures in these notes and in the annexed financial statements have been rounded off to the nearest Taka.
(iii) These notes form an integral part of the annexed financial statements and accordingly are to be read in conjunction there-
with.
(iv) These financial statements cover one calender year from 01 January 2019 to 31 December 2019 .


Bank Asia Limited
Notes to the
Amount in Taka
31 Dec 2019 31 Dec 2018
4 Cash
4.1 In hand (including foreign currencies)
Conventional and Islamic banking
Local currency 3,215,685,185 2,642,651,071
Foreign currencies 26,279,990 36,957,655
3,241,965,175 2,679,608,726
Off-shore banking unit - -
3,241,965,175 2,679,608,726
4.1(a) Consolidated Cash in hand
Bank Asia Limited 3,241,965,175 2,679,608,726
Bank Asia Securities Limited 6,689 7,290
BA Exchange Company (UK) Limited 905,678 3,483,040
BA Express USA, Inc - 108,796
3,242,877,542 2,683,207,852
4.2 Balance with Bangladesh Bank and its agent bank (including foreign currencies)
Balance with Bangladesh Bank
Local currency (statutory deposit) 14,281,134,218 11,813,624,203
Foreign currencies 5,483,798,564 333,978,489
19,764,932,782 12,147,602,692
Balance with agent bank (Sonali Bank Limited)
Local currency 978,794,122 724,909,310
Foreign currencies - -
978,794,122 724,909,310
20,743,726,904 12,872,512,002
20,743,726,904 12,872,512,002
4.2(a) Consolidated Balance with Bangladesh Bank and its agent bank
(including foreign currencies)
Bank Asia Securities Limited - -
BA Exchange Company (UK) Limited - -
BA Express USA, Inc - -
20,743,726,904 12,872,512,002
4.3 Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR)
Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) have been calculated and maintained in accordance with Section 33 of
Bank Company Act 1991, DOS circular nos. 01 dated 19 January 2014, MPD circular no. 01 and MPD circular no. 116/2018-592 dated
03 April 2018 and and DOS Circular Letter No. 26 dated August 19, 2019.

The statutory Cash Reserve Ratio on the Bank’s time and demand liabilities at the rate 5.5% (conventional, islamic and offshore
banking) has been calculated and maintained with Bangladesh Bank in local currency and 13% (5.5% for Islamic Banking) Statutory
Liquidity Ratio for conventional and offshore banking, on the same liabilities has also been maintained in the form of cash in hand,
balance with Bangladesh Bank and its agent bank, treasury bills, bonds and debentures. CRR and SLR maintained by the Bank are
shown below:
4.3.1Cash Reserve Ratio (CRR)
Conventional and Offshore Banking
As per Bangladesh Bank DOS Circular No. 01 dated January 19, 2014, MPD circular no. 01 and MPD circular no. 116/2018-592 dated
03 April 2018 and DOS Circular Letter No. 26 dated August 19, 2019 Bank has to maintain CRR @ 5.5% on fortnightly cumulative
average basis and minimum @ 5% on daily basis for its Conventional and Offshore Banking.
298
Notes to the
Amount in Taka
31 Dec 2019 31 Dec 2018
i. Daily Bank’s CRR maintenance:
Required reserve (5 % on Demand and Time Liabilities) 12,425,814,000 10,107,919,550
Domestic Banking Operation 11,454,521,000 10,107,919,550
Offshore Banking Operation 971,293,000 -
Actual reserve maintained 14,342,548,530 11,016,525,310
Surplus 1,916,734,530 908,605,760

ii. Fortnightly Bank’s CRR maintenance:
Required reserve (5.5 % of Demand and Time Liabilities) 13,668,395,000 11,118,711,505
Offshore Banking Operation 1,068,422,000 -
Actual reserve maintained (average) 13,858,631,590 11,338,798,000
Surplus 190,236,590 220,086,495
Islamic Banking
i. Daily Bank’s CRR maintenance:
Required reserve (5% Demand and Time Liabilities) 881,019,000 686,085,700
Actual reserve maintained 971,336,000 755,523,504
Surplus 90,317,000 69,437,804
ii. Fortnightly Bank’s CRR maintenance:

Required reserve (5.5% of Demand and Time Liabilities) 969,120,000 754,694,240
Actual reserve maintained (Average) 982,962,670 755,523,504
Surplus 13,842,670 829,264
4.3.2 Statutory Liquidity Ratio (SLR)

Conventional Banking
13% of Average Demand and Time Liabilities
Required reserve 32,307,116,000 26,280,590,830
Offshore Banking Operation 2,525,361,000 -
Actual reserve maintained 55,749,003,020 35,613,981,000
Surplus 23,441,887,020 9,333,390,170
Islamic Banking
5.5% of Average Demand and Time Liabilities
Required reserve 969,120,000 754,694,240
Actual reserve maintained 1,010,836,000 786,588,000
Surplus 41,716,000 31,893,760
23,483,603,020 9,365,283,930
4.3.3 Held for Statutory Liquidity Ratio

Conventional Banking
Cash in hand 3,202,645,610 2,645,456,000
Excess of CRR - Balance with Bangladesh Bank 674,153,530 -
Balance with agent bank (Sonali Bank Limited) 644,180,530 589,932,000
Government securities 51,225,860,540 32,377,047,000
Other securities 2,162,800 1,546,000
55,749,003,010 35,613,981,000

Bank Asia Limited
Notes to the
Amount in Taka
31 Dec 2019 31 Dec 2018
Islamic Banking
Cash in hand 39,320,000 31,058,000
Excess of CRR - Balance with Bangladesh Bank 2,216,000 830,000
Government securities 969,300,000 754,700,000
Other securities - -
1,010,836,000 786,588,000
56,759,839,010 36,400,569,000
5. Balance with other banks and financial institutions

In Bangladesh
Conventional and Islamic banking (Note 5.1) 19,491,968,105 23,488,274,856
19,491,968,105 23,488,274,856
Outside Bangladesh
Off-shore banking unit 457,730,481 465,862,484
3,621,585,699 2,377,338,310
23,113,553,804 25,865,613,166
5.1 Conventional and Islamic banking-In Bangladesh

Current accounts
AB Bank Limited 41,480 41,480
Agrani Bank Limited 242,743,542 5,696
Jamuna Bank Limited - 345
Janata Bank Limited 74,235,985 66,465,691
Rupali Bank Limited 106,657,418 59,552,217
Pubali Bank Limited 181,718,255 -
Standard Chartered Bank 258,270 9,354,693
Sonali Bank Limited 276,432,774 249,494,042
Trust Bank Limited (5,022,218) (8,923,545)
877,065,506 375,990,619
Short- notice deposit accounts
Bank Alfalah Limited 15,035 2,012,720
BRAC Bank Limited - 829,427
Islami Bank Bangladesh Limited 180,283 180,283
Uttara Bank Limited 48,719 116,613
802,599 3,684,237
Fixed deposit accounts/ MTDR
Islamic Finance and Investment Limited 150,000,000 200,000,000
Hajj Finance Company Limited 150,000,000 150,000,000
Premier Bank Limited - 500,000,000
300,000,000 850,000,000
1,177,868,105 1,229,674,856
Placements
With Banking companies 12,764,100,000 19,308,600,000
With Non-banking financial institutions 5,550,000,000 2,950,000,000
18,314,100,000 22,258,600,000
19,491,968,105 23,488,274,856
300
Notes to the
Amount in Taka
31 Dec 2019 31 Dec 2018
Details of Placement with Banking companies(Local Currency)
EXIM Bank Limited - 1,000,000,000
Jamuna Bank Limited 3,500,000,000 4,000,000,000
Mercantile Bank Limited 1,000,000,000 1,000,000,000
Mutual Trust Bank Limited 500,000,000 1,000,000,000
National Credit and Commerce Bank Limited - 500,000,000
National Bank Limited 1,000,000,000 1,600,000,000
One Bank Limited 3,000,000,000 -
Social Islami Bank Limited - 1,000,000,000
Standard Bank Limited 3,000,000,000 3,000,000,000
12,000,000,000 13,100,000,000
Details of Placement- with Banking companies (Foreign Currencies)
Eastern Bank Limited - 1,845,800,000
Islami Bank Bangladesh Limited - 4,195,000,000
Modhumoti Bank Limited 764,100,000 167,800,000
764,100,000 6,208,600,000
12,764,100,000 19,308,600,000
Details of Placement with Non-banking financial institutions
Delta Brac Housing 400,000,000 300,000,000
Investment Corporation of Bangladesh 3,000,000,000 2,000,000,000
IPDC Finance Limited 500,000,000 300,000,000
IDLC Finance Limited 1,500,000,000 -
United Finance Limited - 200,000,000
Union Capital Limited 150,000,000 150,000,000
5,550,000,000 2,950,000,000
5.2 Conventional and Islamic banking- Outside Bangladesh

Current accounts
Interest bearing:
Citibank N.A., London (EURO) 467,484 23,748,210
Citibank N.A., London (GBP) 12,159,468 6,372,266
Citibank NA, New York (USD) 521,514,002 299,678,693
Habib American Bank, New York 1,811,044,754 956,850
Mashreqbank PSC, New York (USD) 25,612,854 201,571
Standard Chartered Bank, Mumbai 44,364,590 1,319,346
Standard Chartered Bank, New York 415,466,240 667,918,664
2,830,629,392 1,000,195,600
Non-interest bearing:
AB Bank Limited, Mumbai 8,937,928 1,562,296
Al Rajhi Bank K.S.A 28,689,207 127,982
Bank of Sydney 2,484,730 995,746
Bhutan National Bank Limited, Thimphu 13,141,369 14,884,715
Axis Bank Ltd, Mumbai ( Acu) 26,614,443 -
Commerzbank AG, Frankfurt (EURO) 19,112,994 88,445,423
Commerzbank AG, Frankfurt (USD) 6,400,719 741,169,583
Habib Metropolitan Bank Limited, Karachi 15,504,093 2,882,244
Aktif Bank, Istanbul -Jpy 2,537,702 -
ICICI Bank Limited, Kowloon 10,577,408 6,105,011
ICICI Bank Limited, Mumbai 66,812,787 540,261
JP Morgan Chase Bank N.A New York, U.S.A 46,115,614 350,075

Bank Asia Limited
Notes to the
Amount in Taka
31 Dec 2019 31 Dec 2018
Mashreqbank PSC, Mumbai (EURO) 764,315 768,342
Mashreqbank PSC, Dubai 44,358,240 1,232,672
Muslim Commercial Bank Limited, Colombo 15,102,974 13,303,597
Nepal Bangladesh Bank Limited, Kathmandu 7,489,419 16,822,578
HDFC Bank, Mumbai 181,135 -
Saudi Hollandi K.S.A - 13,090,027
Unicredit Bank AG, Munich (EURO)/Hypovereins Bank, Munich (EURO) 1,025,425 2,486,562
Wells Fargo Bank NA, New York, (USD) 11,926,959 4,085,974
Wells Fargo Bank NA, London, (Euro) 3,616,182 1,867,588
Zurcher Kantonal Bank, Switzerland 1,832,183 559,550
333,225,826 911,280,226
3,163,855,218 1,911,475,826
Placement with Off-shore Banking Unit 1,139,358,801 922,900,000
Less: Inter company transaction (1,139,358,801) (922,900,000)
3,163,855,218 1,911,475,826
5.3 Maturity grouping of balance with other banks and financial institutions
Up to 1 month 10,148,653,804 13,030,613,166
More than 1 month but not more than 3 months 10,964,900,000 10,076,500,000
More than 3 months but not more than 6 months 2,000,000,000 2,758,500,000
More than 6 months but not more than 1 year - -
More than 1 year but not more than 5 years - -
More than 5 years - -
23,113,553,804 25,865,613,166
5(a) Consolidated Balance with other banks and financial institutions
In Bangladesh
Bank Asia Securities Limited 390,202,061 279,364,574
19,882,170,166 23,767,639,430
Less: Inter-company transactions 7,056,653 14,513,073
19,875,113,514 23,753,126,357
Outside Bangladesh
BA Exchange Company (UK) Limited 44,673,605 37,479,766
BA Express USA, Inc 93,624,752 75,190,889
3,759,884,056 2,490,008,965
23,634,997,570 26,243,135,322
6. Money at call and on short notice
Call money Lending (Note 6.1) 2,500,000,000 100,000,000
Short Notice Lending (Note 6.2) 2,100,000,000 -
4,600,000,000 100,000,000
6.1 Call Money Lending- with Banking companies:
Pubali Bank Limited - 100,000,000
Standard Bank Limited 300,000,000 -
National Bank Limited 900,000,000 -
NRB Bank Limited 300,000,000 -
Midland Bank Limited 600,000,000 -
2,100,000,000 100,000,000
302
Notes to the
Amount in Taka
31 Dec 2019 31 Dec 2018
With non Banking financial institutions:
Delta Brac Housing 400,000,000 -
2,500,000,000 100,000,000
6.2 Short Notice Lending
AB Bank Limited 1,500,000,000 -
NRB Commercial Bank Limited 600,000,000 -
2,100,000,000 -
6(a) Consolidated Money at call and on short notice
Bank Asia Limited 4,600,000,000 100,000,000
4,600,000,000 100,000,000
7. Investments
Government (Note 7.1) 52,197,323,349 33,133,291,838
Others (Note 7.2) 2,735,256,587 2,865,906,506
54,932,579,936 35,999,198,344
7.1 Government
Conventional and Islamic banking (Note 7.1.1) 52,197,323,349 33,133,291,838
52,197,323,349 33,133,291,838
7.1.1 Conventional and Islamic banking
Treasury bills (Note 7.1.1.1) 17,957,242,335 5,566,966,237
Treasury bonds (Note 7.1.1.2) 34,237,918,214 27,564,779,601
Prize bonds 2,162,800 1,546,000
52,197,323,349 33,133,291,838
7.1.1.1 Treasury bills
91days treasury bills 983,819,500 -
182 days treasury bills 5,802,790,192 1,999,243,099
364 days treasury bills 11,170,632,643 3,567,723,138
17,957,242,335 5,566,966,237
7.1.1.2 Treasury bonds
Bangladesh Bank Islamic bond 969,300,000 754,700,000
2 years Bangladesh Government treasury bonds 11,860,346,380 10,360,647,089
5 years Bangladesh Government treasury bonds 1,232,569,103 -
34,237,918,214 27,564,779,601
7.2 Others
Conventional and Islamic banking (Note 7.2.1) 2,735,256,587 2,865,906,506
Less: Adjustment with OBU (137,586,963) (94,182,403)
2,735,256,587 2,865,906,506
7.2.1 Conventional and Islamic banking
a) Ordinary shares (Details are shown in Annexure-B)
Quoted shares 451,939,366 478,246,611
Unquoted share 226,743,590 197,320,728
678,682,956 675,567,339

Bank Asia Limited
Notes to the
Amount in Taka
31 Dec 2019 31 Dec 2018
b) Mutual Fund (Details are shown in Annexure-B)
1st Janata Bank Mutual fund 50,000,000 50,000,000
EBL NRB Ist Mutual Fund 149,665,000 149,665,000
Ist Bangladesh Fixed Income Fund 250,000,000 250,000,000
MBL 1st Mutual Fund 50,000,000 50,000,000
EXIM Bank 1st Mutual Fund 235,793,533 242,235,820
735,458,533 741,900,820
c) Debentures
Beximco Denims Limited 9,537,605 9,537,605
Beximco Textiles Limited 6,445,370 6,445,370
15,982,975 15,982,975
d) Bonds
MTB Second subordinated bond 240,000,000 320,000,000
UCB Second subordinated bond 180,000,000 240,000,000
BSRM Steels Limited zero coupon bond 21,132,123 66,455,372
Premier Bank Non-convert subordinated bond 500,000,000 500,000,000
BSRML Coupon bond - 22,000,000
7 Year Preference Share Of Summit BPL 54,000,000 64,000,000
5 Year Pre. Sh. of Summit Gazipur II Power 50,000,000 -
5 Year Pref. Sh.of Summit Lng Ter Co(Pvt) 100,000,000 -
SIBL subordinated Mudaraba bond 80,000,000 120,000,000
SIBL 2nd Mudaraba Subordinated Bond 80,000,000 100,000,000
1,305,132,123 1,432,455,372
2,735,256,587 2,865,906,506
7.3 Investments classified as per Bangladesh Bank circular
Held for trading (HFT) 17,957,242,335 5,566,966,237
Held to maturity (HTM) 33,268,618,214 26,810,079,601
Other securities 3,706,719,387 3,622,152,506
54,932,579,936 35,999,198,344
7.4 Maturity-wise grouping
On demand 3,800,078,275 5,460,178,275
Up to 3 months 4,022,700,000 102,600,000
More than 3 months but not more than 1 year 16,213,600,000 12,679,200,000
More than 1 year but not more than 5 years 12,123,715,602 7,320,000,000
More than 5 years 18,772,486,059 10,437,220,069
54,932,579,936 35,999,198,344
7(a) Consolidated Investments
Government
52,197,323,349 33,133,291,838
Others
3,329,648,577 3,410,910,604
55,526,971,926 36,544,202,442
304
Notes to the
Amount in Taka
31 Dec 2019 31 Dec 2018
8 Loans and advances/investments
Loans, cash credits, overdrafts, etc/investments (Note 8.1) 208,039,420,174 193,721,116,473
Bills purchased and discounted (Note 8.2) 19,259,535,874 20,897,034,672
227,298,956,048 214,618,151,145
8.1 Loans, cash credits, overdrafts, etc/investments

Inside Bangladesh
Agricultural loan 4,159,541,046 2,304,858,400
Cash credit/Bai Murabaha (Muajjal) 5,200,792,123 4,845,956,472
Credit card 2,516,315,246 2,079,086,197
Credit for poverty alleviation scheme-micro credit 7,123,089 7,837,482
Consumer credit scheme 12,187,585,434 10,952,376,679
Demand loan 35,233,505,899 32,699,461,515
Export Development Fund (EDF) 13,877,741,438 12,122,911,605
House building loans 1,132,154,665 1,024,681,187
Loans (General)/ Musharaka 22,237,867,700 14,033,128,865
Loan against trust receipts/ Bai Murabaha post import 11,706,288,469 13,066,570,576
Overdrafts/ Quard against scheme 36,888,315,235 39,411,033,569
Packing credit 501,557,309 548,322,822
Payment against documents 122,281,961 173,243,859
Staff Loan 1,534,466,105 1,402,891,669
Transport loan 1,876,229,886 1,802,259,629
Term loan- industrial/ Hire purchase under Shirkatul Melk 21,034,437,536 20,485,425,374
Term loan- others 35,140,657,300 33,712,504,848
205,356,860,441 190,672,550,748
Outside Bangladesh - -
205,356,860,441 190,672,550,748
Off-shore banking unit 2,682,559,733 3,048,565,725
208,039,420,174 193,721,116,473
8.2 Bills purchased and discounted
Conventional and Islamic banking 2,370,138,131 3,093,996,825
19,259,535,874 20,897,034,672
Repayable on demand 32,536,456,048 30,721,351,145
Not more than 3 months 33,477,600,000 28,777,300,000
More than 3 months but not more than 1 year 75,668,900,000 64,148,600,000
More than 1 year but not more than 5 years 70,342,105,600 74,760,900,000
More than 5 years 15,273,894,400 16,210,000,000
227,298,956,048 214,618,151,145
8.4 Net loans and advances/investments
Gross loans and advances/investments 227,298,956,048 214,618,151,145
Less: Interest suspense (Note 13.4) 2,014,114,905 1,689,435,106
Provision for loans and advances/investments (Note 13.2) 12,279,116,920 8,984,001,791
14,293,231,825 10,673,436,897
213,005,724,223 203,944,714,247
8.5 Loans and advances/investments under the following broad categories
In Bangladesh
Loans 165,950,312,816 149,464,126,432
Cash credits 5,200,792,123 4,845,956,472
Overdrafts 36,888,315,235 39,411,033,569
226,478,134,864 213,536,063,601
Outside Bangladesh

Bank Asia Limited
Notes to the
Amount in Taka
31 Dec 2019 31 Dec 2018
Bills purchased and discounted 820,821,184 1,082,087,544
227,298,956,048 214,618,151,145
8.6 Significant concentration wise grouping

a) Directors - -
b) Chief Executive and other senior executives
i) Managing Director 2,704,000 3,032,000
ii) Other senior executives 174,989,000 149,279,000
177,693,000 152,311,000
c) Agriculture 4,776,100,000 5,915,900,000
d) Industry 108,924,763,048 102,575,940,145
Food Manufacturing 13,514,000,000 11,750,700,000
Beverage industry 338,600,000 434,400,000
Tobacco industry 69,600,000 231,500,000
RMG industry 22,705,100,000 25,513,200,000
Textile industry 21,335,000,000 21,784,900,000
Wood cork and allied products 48,900,000 50,300,000
Furniture and Fixture 159,100,000 152,900,000
Paper and paper products 6,561,400,000 5,673,200,000
Leather and leather products 2,298,900,000 1,896,500,000
Rubber products 2,775,400,000 2,124,500,000
Chemical and chemical products 2,178,900,000 1,394,500,000
Basic metal products 8,800,200,000 8,826,700,000
Electrical machinery and apparatus 3,327,000,000 2,847,800,000
Other manufacturing industries 18,284,363,048 16,107,940,145
Ship building 4,608,300,000 2,729,900,000
Ship breaking 1,419,700,000 621,500,000
Pharmaceutical 500,300,000 435,500,000
e) Constructions 5,704,100,000 3,915,600,000
f) Power, Gas, Water and Sanitary Services 7,657,100,000 3,624,000,000
g) Transport, Storage and Communication 1,577,500,000 2,620,600,000
h) Trade Services 47,112,900,000 45,579,000,000
i) Housing Services 15,140,400,000 14,305,100,000
j) Banking and Insurance 3,429,000,000 4,658,800,000
k) Professional and Misc. services 32,799,400,000 31,270,900,000
227,298,956,048 214,618,151,145
8.7 Geographical location-wise grouping

Inside Bangladesh
Urban
Dhaka Division 150,749,987,430 139,809,593,390
Chittagong Division 44,596,194,337 46,460,461,901
Khulna Division 4,081,619,811 3,614,476,768
Rajshahi Division 2,725,982,194 2,592,279,575
Barisal Division 804,001,905 778,313,758
Sylhet Division 1,968,108,052 1,811,339,623
Rangpur Division 1,271,032,534 1,050,457,579
Mymensingh Division 530,778,677 467,274,393
206,727,704,940 196,584,196,987
Rural
Dhaka Division 13,510,893,368 11,671,299,336
Chattagram Division 4,155,761,316 3,768,587,276
Khulna Division 95,611,839 68,074,698
306
Notes to the
Amount in Taka
31 Dec 2019 31 Dec 2018
Sylhet Division 384,841,443 366,770,250

Rajshahi Division 2,424,143,142 2,159,222,598
20,571,251,108 18,033,954,158
227,298,956,048 214,618,151,145
8.8 Loans/investments including bills purchased and

discounted covered by securities
Collateral of movable/immovable assets 131,430,205,799 130,127,028,163
Local banks and financial institutions' guarantee 723,545,355 418,733,584
Foreign banks' guarantee 91,182,676 17,852,799
Export documents 8,394,416,952 6,979,780,484
Cash and quasi cash 6,258,140,290 6,392,742,654
Personal guarantee 16,493,947,200 31,162,266,498
Other securities 63,907,517,775 39,519,746,963
227,298,956,048 214,618,151,145
8.9 Details of large loans/investments

As at 31 December 2019 there were eight (2018: nine) clients with whom amount of outstanding and classified loans and advances
exceeded 10% of the total capital of the Bank. Total capital of the Bank was Taka 42,757.14 million as at 31 December 2019
(Taka 35,082.90 million in 2018). Details are shown in Annex E.
8.10 Particulars of loans and advances/investments

i) Loans/investments considered good in respect of which the Bank
146,897,491,073 143,936,137,684
is fully secured
ii) Loans/investments considered good against which the Bank holds
16,493,947,200 31,162,266,498
no security other than the debtors’ personal guarantee
iii) Loans/investments considered good secured by the personal undertaking
63,907,517,775 39,519,746,963
of one or more parties in addition to the personal guarantee of the debtors
iv) Loans/investments adversely classified; provision not
- -
maintained there against
227,298,956,048 214,618,151,145
v) Loans/investments due by directors or officers of the Bank or
1,534,466,105 1,402,891,669
any of them either separately or jointly with any other persons
vi) Loans/investments due from companies or firms in which the directors or officers
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/investments, including temporary advances/
investments made at any time during the year to directors or managers or officers 1,534,466,105 1,402,891,669
of the bank or any of them either separately or jointly with any other person.
viii) Maximum total amount of advances/investments, including temporary advances/
investments granted during the year to the companies or firms in which the direc-
- -
tors of the bank are interested as directors, partners or managing agents
or in the case of private companies, as members
ix) Due from banking companies 19,259,535,874 20,897,034,672
x) Amount of classified loans/investments on which interest has not
been charged mentioned as follows:
a) Increase/(Decrease) of provision (specific) 711,897,413 152,759,761
Amount of loan written off 2,716,368,198 2,890,073,681
Amount realised against the loans previously written off 145,983,239 102,546,693

Bank Asia Limited
Notes to the
Amount in Taka
31 Dec 2019 31 Dec 2018
b) Provision kept against loans/investments classified as bad debts 4,604,656,791 3,892,759,378
c) Interest credited to interest suspense account 2,014,114,905 1,689,435,106
xi) Cumulative amount of written off loans/investments
Balance as at 1 January 10,151,537,951 7,261,464,270
Amount written off during the year 2,716,368,198 2,890,073,681
The amount of written off loans/investments for which law suit has been filed 12,867,906,149 10,151,537,951
8.11 Grouping as per classification rules
Unclassified:
Standard including staff loan 208,365,703,048 194,395,578,967
Special mentioned account 8,453,268,000 11,412,741,749
216,818,971,048 205,808,320,716
Classified:
Sub-standard 1,847,769,000 273,124,207
Doubtful 576,934,000 690,818,120
Bad/loss 8,055,282,000 7,845,888,102
10,479,985,000 8,809,830,429
227,298,956,048 214,618,151,145
8.12 Particulars of required provision for loans and advances/investments
Outstanding Base for Required provison

Status
at 31 Dec 2019 provision % Amount
For loans and advances/Investments:
Unclassified - general provision
All unclassified loans (other than SME financing, house building loan and loan for professional, loan to Brokerage House (BH),
consumer finance, staff loan and SMA) 143,217,807,418 110,576,382,660 1% to 5% 6,635,246,309 4,054,864,680
Small and medium enterprise financing 27,772,463,000 27,772,463,000 0.25% 69,431,158 71,297,815
House building loan and loan for professional 10,848,239,000 10,848,239,000 1 to 2% 108,482,390 87,081,359
Loans to BH 1,934,258,000 1,934,258,000 2.00% 38,685,160 42,649,454
Consumer finance 4,165,675,000 4,165,675,000 2% to 5% 208,283,750 131,853,081
Staff loan 1,530,890,000 297,683.00 20% 59,537 -
7,060,188,303 4,387,746,390
Special mentioned account 7,777,681,154 7,777,681,154 0.25% to 90% 411,112,252 495,112,661
Off-shore unit
Unclassified loans (general) 18,896,370,630 18,896,370,630 1% 188,963,706 206,641,311
Special mentioned account 675,586,846 675,586,846 0.25% to 90% 6,755,868 1,708,407
Sub-standard - - - 3,326,356
195,719,574 211,676,074
Classified - specific provision
Sub-standard 1,847,769,000 1,170,987,000 20% / 5% 234,201,791 20,732,833
Doubtful 576,934,000 257,562,000 50% / 5% 128,781,000 148,690,956
Bad/loss 8,055,282,000 4,239,831,000 100% 4,239,831,000 3,714,894,317
4,602,813,791 3,884,318,106
Provision required for loans and advances 12,269,833,920 8,978,853,231
Total provision maintained (Note 13.2)
Conventional and Islamic Banking 12,083,397,346 8,772,325,717
Off-shore Banking Unit 195,719,574 211,676,074
12,279,116,920 8,984,001,791
308
Notes to the
Amount in Taka
31 Dec 2019 31 Dec 2018
8.13 Suits filed by the Bank (Branch wise details)

Agrabad Branch 2,693,658,008 2,774,258,008
Anderkilla Branch 2,146,564,386 2,105,234,642
Ashulia Branch 21,764,732 23,540,241
Bahadderhat Branch 90,638,634 85,691,640
Bank Asia Bhaban Branch 100,592,656 100,592,656
Bashundhara Branch 312,998,503 312,046,119
Beanibazar Branch 5,584,770 5,584,770
Bhatiary Branch 245,224,731 657,867,500
Bogra Branch 170,554,742 170,554,742
BSMMU Branch 1,413,816 1,413,816
Credit Cards Department 64,430,319 69,433,018
CDA Avenue Branch 5,640,824,080 5,640,824,080
Chandragonj Branch 492,048 492,048
Chatkhil Branch 6,793,978 6,793,978
Corporate Branch 330,238,700 334,807,982
Cumilla Branch 32,485,367 18,704,998
Dhanmondi Branch 1,009,129,125 122,804,875
Donia Branch 46,946,884 32,926,436
Elephant Road 2,375,836 2,375,836
Gulshan Branch 1,338,662,983 1,338,662,983
Holy Family RCMCH Branch 58,723,079 58,723,079
Jatrabari SME 1,185,818 328,558
Jessore Branch 89,881,449 89,881,449
Jurain SME Centre 941,349 941,349
Kamal Bazar Branch 315,335 315,335
Khatunganj Branch 3,131,411,640 2,157,859,046
Khulna Branch 77,394,034 77,394,034
Konabari Branch 12,544,477 12,544,477
Lohagara Branch 15,123,119 15,123,119
Maijdee Court Branch 98,687,119 -
Malkhanagar Branch 77,943,669 99,260,146
MCB Banani Branch 132,311,907 132,311,907
MCB Dilkusha Branch 1,383,595,978 1,282,815,521
MCB Sk. Mujib Road Branch 2,056,385,324 2,056,385,324
Mirpur Branch 14,808,324 26,444,967
Mitford Branch 300,047,766 300,047,766
Moghbazar Branch 53,513,290 53,513,290
Mohakhali Branch 62,424,673 62,424,673
Moulavibazar Branch 19,007,011 2,762,801
Narayangonj Branch 163,562,826 89,442,295
North South Road Branch 1,692,245,369 1,366,732,384
Oxygen Moor Branch 5,874,497 5,874,497
Paltan Branch 70,216,500 10,831,306
Principal Office Branch 1,059,220,847 1,002,679,377
Progoti Sarani Branch 41,295,179 35,201,218
Rajshahi Branch 38,621,684 4,856,245
Ramgonj SME/Agri Branch 13,655,636 13,655,636
Rekabi bazar SME Center 348,681 348,681
Rupnagar Branch 870,417 870,417

Bank Asia Limited
Notes to the
Amount in Taka
31 Dec 2019 31 Dec 2018
Savar Branch 19,429,224 19,429,224
Scotia Branch 675,239,701 675,239,701
Shantingar Branch 1,000,549,493 967,970,063
Station Road Branch 158,228,019 158,228,019
Strand Road Branch 14,991,880 4,941,664
Sylhet Main Branch 23,438,876 31,102,359
Sylhet Uposhahar Branch 5,351,680 183,201,041
Sylhet Uposhahar Islamic Window Branch 19,936,418 17,140,393
Tarail Branch 230,000 1,162,000
Tongi Branch 2,174,613 2,174,613
Uttara Branch 924,570,685 924,570,685
EPZ Branch 5,904,884 5,519,100
27,783,576,768 25,754,858,130
Payable in Bangladesh 18,438,714,690 19,814,947,128
Payable outside Bangladesh 820,821,184 1,082,087,544
19,259,535,874 20,897,034,672
8.15 Maturity-wise grouping of bills purchased and discounted

Payable within 1 month 8,072,270,117 3,973,106,392
More than 1 month but less than 3 months 5,373,161,137 9,482,018,096
More than 3 months but less than 6 months 4,517,632,558 6,424,063,662
More than 6 months 1,296,472,062 1,017,846,523
19,259,535,874 20,897,034,672
8(a) Consolidated Loans and advances/investments

Loans, cash credits, overdrafts, etc/investments
Bank Asia Securities Limited 4,649,980,291 4,993,663,846
212,689,400,465 198,714,780,319
Less: Inter- companies transactions 1,853,724,468 2,058,883,156
210,835,675,997 196,655,897,163
Bills purchased and discounted
19,259,535,874 20,897,034,672
230,095,211,871 217,552,931,835
9 Fixed assets including premises, furniture and fixtures

7,025,602,707 5,431,553,592
9.1 Conventional and Islamic banking

Cost:
Land 2,646,764,306 2,646,764,306
Building 2,752,485,492 2,752,485,491
Furniture and fixtures 1,392,511,972 1,355,809,379
310
Notes to the
Amount in Taka
31 Dec 2019 31 Dec 2018
Equipments 1,260,865,987 1,033,724,535
Computer and accessories 546,994,266 513,104,363
Motor vehicles 222,685,296 262,179,818
Intangible assets 24,000,000 -
Construction work in progress 667,935,308 379,079,065
Right-of-use assets 1,739,075,475 -
11,253,318,102 8,943,146,959
Less: Accumulated depreciation 4,174,000,131 3,457,878,103
Adjustment of assets revaluation 53,715,264 53,715,264
Written down value at the end of the year - Details are shown in Annex C. 7,025,602,707 5,431,553,592
9(a) Consolidated Fixed assets including premises, furniture and fixtures
7,065,893,231 5,445,867,834
10 Other assets
12,843,989,123 9,724,763,581
Income generating other assets
Investment in Bank Asia Securities Ltd - incorporated in Bangladesh 1,999,990,000 1,999,990,000
Investment in BA Exchange Company (UK) Limited - incorporated in UK 33,300,000 31,800,000
Investment in BA Express USA Inc - incorporated in USA 81,504,000 80,544,000
2,114,794,000 2,112,334,000
Non-income generating other assets
Income receivable (Note 10.2) 1,007,575,087 667,109,668
Stock of stamps 8,488,149 7,423,486
Stationery, printing materials, etc 64,887,379 51,495,808
Prepaid expenses 1,802,233 14,619,641
Deposits and advance rent 340,391,863 323,031,650
Advances, prepayments and others (Note 10.3) 244,111,397 267,763,746
Advance income tax (Note 10.4) 7,236,912,463 5,185,175,810
Receivable against government 138,341,463 506,000,150
Sundry debtors 62,639,097 64,944,699
Branch adjustment account (Note 10.5) 1,152,362,220 130,417,688
Protested bills 68,035,265 68,035,265
Receivable from BA Exchange Company (UK) Limited 83,868,721 71,073,212
Receivable from BA Express USA Inc 219,844,009 206,003,095
Excise duty recoverable 50,841,880 18,886,160
10,680,101,226 7,581,980,078
12,794,895,226 9,694,314,078
10.2 income receivable
Income receivable consists of interest accrued on investment and other income.
10.3 Advances, prepayments and others
Advances, prepayments and others account consists of advance amount paid for purchasing of fixed assets, advance payment of rent
for new branches of the Bank, advance against salary and legal expenses, etc.

Bank Asia Limited
Notes to the
Amount in Taka
31 Dec 2019 31 Dec 2018
10.4 Advance income tax

Advance income tax represents the tax payment to the government exchequer.
10.5 Branch adjustment accounts
This represents outstanding inter-branch and head office transactions (net) which are originated but not responded by the counter
transaction at the balance sheet date. The unresponded entries of 31 December 2019 are given below:

Number of Amount of Number of Amount of
Periods of Reconciliation responded responded responded responded
entries (Debit) entries (Taka) entries (Credit) entries (Taka)
Up to 3 months 43 1,126,423,486 116 41,194,135
More than 3 months but within 6 months - - 4 30,525
More than 6 months but within 1 year - - - -
More than 1 year but within 5 years - - - -
Above 5 years - - - -
43 1,126,423,486 120 41,224,660

10.6 Receivable from Government in connection with Rangs Properties:
The Bank has a receivable from Government in connection with demolition of Rangs Bhaban in 2008 situated at 113-116 Old Airport
Road, Dhaka-1215. Bank Asia had a purchased floor at 3rd floor of the Building, where from the then Scotia Branch used to run. Total
receivable in this regard is Tk. 3,19,52,365 (Taka three crore nineteen lac fifty two thousand three hundred sixty five) which was even-
tually written-off from the Book considering uncertainty and prolonged legal proceedings.
10 (a) Consolidated Other assets
13,227,299,964 10,173,514,928
Less: Inter- companies transactions
Investment in Bank Asia Securities Limited 1,999,990,000 1,999,990,000
Investment in BA Exchange Company (UK) Limited 32,553,000 30,995,250
Investment in BA Express USA, Inc 80,496,000 79,440,000
Receivable from BA Exchange Company (UK) Limited 83,868,721 71,073,212
Receivable from BA Exchange USA, Inc. 219,844,009 206,003,095
10,810,548,234 7,786,013,371
10(aa) Demutualization membership of Dhaka Stock Exchange

The majority owned (99.99%) subsidiary company of the Bank, Bank Asia Securities Limited (BASL) has acquired the membership of
Dhaka Stock Exchange for Tk.153,119,000. As per the scheme of Demutualization of DSE, BASL being the initial shareholders of DSE,
is entitled to receive 7,215,106 shares of Tk. 10 each, totaling Tk. 72,151,060.
Under section 14(Ka) of Demutualization Act 2013, Share Purchase Agreement (SPA) executed between Dhaka Stock Exchange Ltd.
(DSE) and its strategic investors namely Shenzhen Stock Exchange (SZSE) and Shanghai Stock Exchange (SSE) and completed the
sale of 25% (Twenty-five percent) DSE shares to SZSE and SSE. In this connection, BASL sold 1,803,777 number of share at the rate of
Tk.21 per share totaling Tk. 37,879,317. Currently BASL holding 5,411,329 shares at a cost of totaling Tk. 114,839,239

The Scheme is not yet completed and these shares are also currently not traded. Hence the actual fair value is not readily
ascertainable. However, management expect the fair value to be similar or more that the current revalued amount. Once more clarity
about the Scheme and related factors are available a determination of fair value and related adjustments including impairment
assessment, if any shall be made at that time.
11 Borrowings from other banks, financial institutions and agents
312
Notes to the
Amount in Taka
31 Dec 2019 31 Dec 2018
Off-shore banking unit (Note 11.2) 19,615,869,735 20,980,469,299

Less: Adjustment with Head Office (1,139,358,801) (922,900,000)
34,382,128,495 31,318,674,113

In Bangladesh (Note 11.1.1) 15,905,617,561 11,261,104,814
15,905,617,561 11,261,104,814
11.1.1 In Bangladesh
Secured: - -
Un secured:
Money at call and on short notice
Arab Bangladesh Bank Limited 1,500,000,000 -
1,500,000,000 -
Borrowings
Bangladesh Bank (BB) refinance 206,595,589 54,294,895
Borrowing from BB under Long Term Financing Facilities (LTFF) scheme 459,465,745 568,099,155
SME Foundation Pre Finance 23,422,607 54,092,607
Borrowing A/C (AGRI Taka 10) 31,223,040 6,852,836
Bio-Gas Plant refinance - 183,330
Borrowing- Green finance refinance 50,000,000 90,000,000
Export development fund 13,634,910,580 10,487,581,991
Onshore export discount 137,586,963 94,182,403
14,543,204,524 11,355,287,217
Less : Inter borrowings between OBU and Conventional Banking (137,586,963) (94,182,403)
15,905,617,561 11,261,104,814
11.2 Borrowing at Off-shore banking unit

Secured: - -
Un secured:
Conventional Banking 1,125,267,792 910,250,000
International Finance Corporation 6,708,000,000 3,310,000,000
Borrowing - ECA 362,158,541 408,465,717
Standard Chartered Bank, Singapore 2,728,059,750 3,361,439,468
First Gulf Bank 419,250,000 1,655,000,000
National Bank of Ras Al Khaimah 1,844,700,000 1,903,250,000
Emirates Islami Bank - 1,158,500,000
United Bank Limited, UAE 838,500,000 993,000,000
Caixa Bank, Barcelona - 1,271,391,688
Bank Of Tokyo-Mitsubishi - 2,482,500,000
HDFC, Gift City, Mumbai 1,257,750,000 372,375,000
Emirates NBD Bank PJSC - 827,500,000
Noor Islami Bank, Dubai, UAE 1,090,050,000 -
Abu Dhabi Commercial bank 838,500,000 1,034,375,000
ID-Valvitalia Spa - 104,959,926
Habib AG Zurich - 500,637,500
State Bank of India - 273,075,000
Nepal Bangladesh Bank Limited - 413,750,000

Bank Asia Limited
Notes to the
Amount in Taka
31 Dec 2019 31 Dec 2018
The Commercial Bank, Qatar 503,100,000 -
DBS Bank Singapore 1,509,300,000 -
Banca Valsabbina SCPA Vestone Italy 108,239,902 -
Sanima Bank, Nepal 282,993,750 -
19,615,869,735 20,980,469,299

11(a) Consolidated Borrowings from other banks, financial institutions and agents
36,235,852,963 33,438,799,755
Less: Inter-company transactions 1,853,724,468 2,058,883,156
34,382,128,495 31,379,916,599

11(aa) Subordinated Non-Convertible Bonds
Subordinated Non-Convertible Zero Coupon Bond
Agrani Bank Limited 120,000,000 160,000,000
BRAC Bank Limited 60,000,000 80,000,000
Mercantile Bank Limited 300,000,000 400,000,000
One Bank Limited 360,000,000 480,000,000
Pubali Bank Limited 150,000,000 200,000,000
Rupali Bank Limited 360,000,000 480,000,000
Sonali Bank Limited 300,000,000 400,000,000
1,800,000,000 2,400,000,000
Subordinated Non-Convertible floating rate bond
Agrani Bank Limited 250,000,000 250,000,000
Dhaka Bank Limited 750,000,000 750,000,000
National Life Insurance Co 500,000,000 500,000,000
Pubali Bank Limited 1,000,000,000 1,000,000,000
Sabinco 150,000,000 150,000,000
Sadharan Bima Corporation 100,000,000 100,000,000
Sonali Bank Limited 1,000,000,000 1,000,000,000
Southeast Bank Limited 500,000,000 500,000,000
Uttara Bank Limited 500,000,000 500,000,000
5,000,000,000 5,000,000,000
Subordinated Non-Convertible floating rate bond
Agrani Bank Limited 2,500,000,000 -
Eastern Bank Limited 1,000,000,000 -
Trust Bank Limited 500,000,000 -
Dutch-Bangla Bank Limited 500,000,000 -
Pubali Bank Limited 500,000,000 -
5,000,000,000 -
11,800,000,000 7,400,000,000

11.3 Maturity-wise grouping (Note 11 and Note 11 aa)
Payable on demand 4,207,328,495 4,076,274,113
Up to 1 month - -
More than 1 month but within 3 months 11,386,200,000 13,952,500,000
More than 3 months but within 1 year 17,036,200,000 10,117,500,000
314
Notes to the
Amount in Taka
31 Dec 2019 31 Dec 2018
More than 1 year but within 5 years 3,352,400,000 9,572,400,000
More than 5 years 10,200,000,000 1,000,000,000
46,182,128,495 38,718,674,113
11.4 Disclosure regarding REPO

Disclosure regarding REPO transactions of the bank are given as per Bangladesh Bank, DOS Circular No. 6 dated July 15, 2010
a (i) Disclosure regarding outstanding REPO as on 31 December
Sl. # Counter party name Agreement date Reversal Date Amount (Taka)
NIL
Total -
(ii) Disclosure regarding outstanding Reverse REPO as on 31 December
Sl. # Counter party name Agreement date Reversal Date Amount (Taka)
1 Brac Bank Limited 30-Dec-19 2-Jan-20 1,003,285,998
2 Jamuna Bank Limited 30-Dec-19 2-Jan-20 492,985,000
Total 1,496,270,998
b Disclosure regarding overall transaction of REPO & Reverse REPO

Minimum outstand- Maximum outstand- Daily average outstanding
Particulars ing during the year ing during the year during the year
Securities sold under repo:
i) with Bangladesh Bank - - -
ii) with other banks & FIs - - -
Securities purchased under reverse repo:
i) with Bangladesh Bank - - -
ii) with other banks & FIs - - -
12 Deposits and other accounts

253,709,574,615 222,471,716,244
Deposits and other accounts
Current/Al-wadeeah current accounts and other accounts
Deposits from banks - -
Deposits from customers 47,005,242,314 46,831,596,579
47,453,683,930 47,224,630,178
Bills payable
3,742,697,471 4,124,678,804
Savings bank/Mudaraba savings bank deposits
48,293,710,027 39,558,517,712
Fixed deposits/Mudaraba fixed deposits
Deposits from banks 1,654,615 1,958,989

Bank Asia Limited
Notes to the
Amount in Taka
31 Dec 2019 31 Dec 2018
154,219,483,187 131,563,889,550
253,709,574,615 222,471,716,244
Deposits from banks (Note 12.1.1) 1,654,615 1,958,989
Deposits from customers (Note 12.1.2) 253,112,552,656 222,010,548,661
253,114,207,271 222,012,507,650
12.1.1 Deposits from banks
Fixed deposit/SND
EXIM Bank Limited 456,585 784,438
Social Islami Bank Limited 577,859 566,168
Trust Bank Limited 580,064 568,327
1,654,615 1,958,989
12.1.2 Deposits from customers
Current/Al-wadeeah current accounts and other accounts ( Note 12.1.2a) 47,005,242,314 46,831,596,579
Bills payable (Note 12.1.2b) 3,742,697,471 4,124,678,804
Savings bank/Mudaraba savings deposits 48,293,710,027 39,558,517,712
Fixed deposits/Mudaraba fixed deposits (Note 12.1.2c) 154,070,902,844 131,495,755,566
253,112,552,656 222,010,548,661
12.1.2a Current/Al-wadeeah current accounts and other accounts
Current/Al-wadeeah current accounts 17,441,207,887 16,626,865,081
Other demand deposit - Local currency 22,733,007,110 23,221,634,537
Other demand deposit - Foreign currencies 5,227,954,342 5,456,866,477
Foreign currency deposits 1,603,072,975 1,526,230,484
Export retention quota - -
47,005,242,314 46,831,596,579
12.1.2b Bills payable
Bills payable - local currency 3,669,925,828 4,114,942,932
Bills payable - foreign currencies 72,771,643 9,735,872
Demand draft - -
3,742,697,471 4,124,678,804
12.1.2c Fixed deposits/Mudaraba fixed deposits
Special notice deposit 27,251,216,317 19,471,499,885
Foreign currency deposits (interest bearing) 3,364,448 3,314,296
Deposit under schemes 35,165,297,498 33,596,996,520
154,070,902,844 131,495,755,566
12.2 Payable on demand and time deposits
a) Demand deposits
Foreign currency deposits (non interest bearing) 6,831,027,317 6,983,096,961
Sundry deposits 22,733,007,110 23,221,634,537
Bills payable 3,742,697,471 4,124,678,804
55,542,815,303 54,909,575,576
b) Time deposits
316
Notes to the
Amount in Taka
31 Dec 2019 31 Dec 2018
Foreign currency deposits (interest bearing) 3,364,448 3,314,296
Special notice deposit 27,251,216,317 19,471,499,885
Security deposits - -
Deposits under schemes 35,165,297,498 33,596,996,520
198,166,759,312 167,562,140,668
253,709,574,615 222,471,716,244
12.3 Sector-wise break-up of deposits and other accounts
Government 6,526,196,000 3,689,607,000
Deposit from banks 1,654,615 1,958,989
Other public 3,066,290,000 1,950,668,000
Foreign currencies 7,502,530,752 7,455,355,723
Private 236,612,903,248 209,374,126,532
253,709,574,615 222,471,716,244
12.4.1 Deposits from banks
Payable on demand 1,654,615 1,958,989
Up to 1 month - -
Over 1 month but within 6 months - -
Over 6 months but within 1 year - -
Over 1 year but within 5 years - -
Over 5 years - -
1,654,615 1,958,989
12.4.2 Customer deposits excluding bills payable
Payable on demand 3,883,700,000 3,883,700,000
Up to 1 month 39,968,110,662 35,497,257,255
Over 1 month but within 6 months 44,028,283,127 46,478,121,196
Over 6 months but within 1 year 69,390,930,219 44,430,000,000
Over 1 year but within 5 years 76,241,136,231 66,740,000,000
Over 5 years 16,453,062,291 21,316,000,000
249,965,222,529 218,345,078,451
12.4.3 Bills payable
Payable on demand 444,200,000 444,200,000
Up to 1 month 8,600,000 8,600,000
Over 1 month but within 6 months 3,289,897,471 3,671,878,804
Over 6 months but within 1 year - -
Over 1 year but within 5 years - -
Over 5 years - -
3,742,697,471 4,124,678,804
253,709,574,615 222,471,716,244
12(a) Consolidated Deposits and other accounts

Current/Al-wadeeah current accounts and other accounts
47,828,692,635 47,502,318,784

Bank Asia Limited
Notes to the
Amount in Taka
31 Dec 2019 31 Dec 2018
47,821,635,983 47,487,805,711
Bills payable
3,742,697,471 4,124,678,804
Savings bank/Mudaraba savings bank deposits
48,293,710,027 39,558,517,712
Fixed deposits/Mudaraba fixed deposits
154,219,483,187 131,563,889,550
254,077,526,668 222,734,891,777
13 Other liabilities
Off-shore banking unit 4,079,318 -
29,163,552,669 22,760,876,373
Provision for loans and advances/investments (Note 13.2) 12,279,116,920 8,984,001,791
Provision on off-balance sheet exposures (Note 13.3) 961,650,585 1,158,027,498
Interest suspense account (Note 13.4) 2,014,114,905 1,689,435,106
Provision for income tax including deferred tax (Note 13.5) 10,575,874,451 8,615,874,451
Provision for performance and festival bonus 288,426,987 295,012,168
Master card and Visa card payables 37,032,028 14,655,334
Expenditures and other payables 385,368,729 293,552,352
Provision for nostro accounts (Note 13.6) - -
Other payable 82,626,079 71,027,834
Provision for profit equalisation 19,403,976 24,152,568
Provision for diminution in value of shares (Note 13.7) 183,383,553 263,383,553
Payable to Government 8,357,621 299,677,621
Provision for others (Note 13.8) 172,218,755 147,218,755
Rebate payable on good borrowers 67,700,000 67,700,000
Unearned income 665,377,497 526,091,282
Interest payable on subordinated non-covertable zero coupon bond 230,843,837 208,496,877
Fraction Bonus Share 2,768,571 2,768,571
ATM/POS settlement account 76,439,468 99,800,612
Lease liabilities (Note 13.9) 1,108,769,389 -
29,159,473,351 22,760,876,373
13.2 Provision for loans and advances/investments

A. General provision - Conventional and Islamic
318
Notes to the
Amount in Taka
31 Dec 2019 31 Dec 2018
Add: Provision made during the year 2,780,517,628 933,259,584
Transfer from diminition value of share 80,000,000 -
Less: Provision no longer required
Specific provision - -
Written off (264,669,768) -
(264,669,768) -
Conventional and Islamic Balance at the end of the year 7,478,740,555 4,882,892,695
B. General provision - OBU
Balance at the beginning of the year 208,349,718 151,553,412
Add: Provision made during the year - 56,796,306
Less: Provision no longer required (12,630,144) -
OBU Balance at the end of the year 195,719,574 208,349,718
C. Total general provision on loans and advances/investments (A+B) 7,674,460,129 5,091,242,413
D. Specific provision
Less: Write off/amicable settlement during the year (2,239,228,388) (2,554,303,945)
Add/ Back: Recoveries of amounts previously written off 145,983,239 102,546,693
Specific provision made during the year 2,805,142,562 2,604,517,014
2,951,125,801 2,707,063,706
Total specific provision on loans and advances/investments 4,604,656,791 3,892,759,378
E. Total provision on loans and advances/investments (C+D) 12,279,116,920 8,984,001,791
13.3 Provision on off-balance sheet exposures

Balance at 1 January 1,157,621,318 1,330,412,915
Add: Provision made during the year - -
1,157,621,318 1,330,412,915
Less: Adjustments made during the year (196,284,055) (172,791,597)
Balance at the end of the year 961,337,263 1,157,621,318
General provision maintained for OBU as at 01 January 406,180 586,555

Less: Adjustments made during the year (92,858) (180,375)
313,322 406,180
Balance at the end of the year 961,650,585 1,158,027,498
As per BRPD circular letter no. 01 dated 03 Jan 2018, Letter of Credit for fast-track projects from Bangladesh Power Development Board are exempt-
ed from 1% off-balance sheet provision charging and as per BRPD Circular No. 07, dated 21 June 2018 no provision required for bills for collection
and for counter guarantee provision is maintained based on BB rating grade.
13.4 Interest suspense account
Add: Amount transferred to "interest suspense" account during the year 818,341,563 1,703,374,813
2,507,776,669 3,412,803,882
Less: Amount of interest suspense recovered 353,260,126 1,530,425,841
Interest waiver during the year 140,401,638 192,942,935
493,661,764 1,723,368,776
Balance as at 31 December 2,014,114,905 1,689,435,106

Bank Asia Limited
Notes to the
Amount in Taka
31 Dec 2019 31 Dec 2018
13.5 Provision for taxation

Current tax (Note 13.5.1) 10,103,853,086 8,143,853,086
Deferred tax (Note 13.5.2) 472,021,365 472,021,365
10,575,874,451 8,615,874,451
13.5.1 Provision for current tax

Add: Provision made during the year 1,960,000,000 2,350,000,000
10,103,853,086 11,155,454,026
Less: Adjustments made during the year - 3,011,600,940
10,103,853,086 8,143,853,086
13.5.1(a) Consolidated Provision for current tax

Add: Provision made during the year
2,019,469,389 2,395,930,537
10,457,975,108 11,450,106,659
Less: Adjustments made during the year
Bank Asia Limited - 3,011,600,940
- 3,011,600,940
Balance as at 31 December 10,457,975,108 8,438,505,719
13.5.2 Provision for deferred tax
Balance at 1 January 472,021,365 472,021,365
Provision made for deferred tax liabilities
Provision made for deferred tax assets - -
Balance as at 31 December 472,021,365 472,021,365
13.5.2 (a) Deferred Tax (asset)/liability

Particulars Book value Tax Base (Deductible)/ Deferred tax (Asset)/
Taxable Liability
Balance as at December 31, 2018
Deferred Tax Asset (686,957,303)
Deferred Tax Liability 457,431,300
Net Deferred Tax Asset 2018 (229,526,003)
Balance as at Dec 31, 2019

Loan loss provision (Note 13.2) 4,604,656,791 - (2,587,285,494) (970,232,060)
Deferred tax assets (a) (970,232,060)
320
Notes to the
Amount in Taka
31 Dec 2019 31 Dec 2018
Particulars Book value Tax Base (Deductible)/ Deferred tax (Asset)/
Taxable Liability
Interest receivable 1,007,575,087 - 1,007,575,087 377,840,658
Fixed assets 2,883,180,789 2,289,682,371 574,925,971 215,597,239
Deferred tax liability (b) 593,437,897
Net Deferred Tax Asset 2019 (a+b) (376,794,164)

Movement for the year 2019
Opening deferred tax assets (686,957,303)
Closing deferred tax assets (970,232,060)
Charge for the year (283,274,757)
Opening deferred tax liabilities 457,431,300

Closing deferred tax liabilities 593,437,897
Charge for the year 136,006,597
Total charge during the year (147,268,161)

As per Bangladesh Bank, BRPD circular no. 11 dated December 12, 2011 deferred tax assets may be recognized but restrictions are
to be followed if deferred tax assets is calculated and recognized based on the provisions against classified loan, advances; such as
i. amount of the net income after tax increased due to recognition of deferred tax assets on such provision will not be distributed as
divided. ii. the amount of deferred tax assets recognized on such provisions should be deducted while calculating the Regulatory El-
igible Capital. iii. a description should be provided regarding deferred tax assets recognized on loan loss provision in the notes to the
financial statements. On the other hand, deferred tax liabilities must be recognized for those items which are mentioned to recognize
in IAS. Hence, the bank did not recognize deferred tax assets but recognize deferred tax liabilities when it arises.
13.6 Provision for nostro accounts
As per instructions contained in the circular letter no. FEPD (FEMO)/01/2005-677 dated 13 September 2005 issued by Foreign Ex-
change Policy Department of Bangladesh Bank, Bank is required to make provision regarding the un-reconciled debit balance of
nostro account as at balance sheet date. Adequate provision has been made for debit entries which are outstanding for more than 3
months. Details of unrecognized entries are shown in Annex I.
13.7 Provision for diminution in value of shares
Balance as at 1 January 263,383,553 253,383,553
Less: Transfer to general provision for loans and advances/investments - -
Add: Provision for impairment loss of investment in subsidiaries (80,000,000) 10,000,000
Balance as at 31 December 183,383,553 263,383,553
Provision requirement for quoted and unqouted share including subsidiaries (Annex B) 169,694,780 117,455,432
Provision maintained 183,383,553 263,383,553
Surplus provison maintained 13,688,773 145,928,121
13.8 Provision for others
Balance at the beginning of the year 147,218,755 134,718,755
Adjustment - -
Add: Provision made during the year 25,000,000 12,500,000
Balance at the end of the year 172,218,755 147,218,755
Provision requirement 167,112,000 139,266,000

Provision maintained 172,218,755 147,218,755

Bank Asia Limited
Notes to the
Amount in Taka
31 Dec 2019 31 Dec 2018
Surplus provison maintained 5,106,755 7,952,755
(Provision for others made for legal expenses, protested bills, expenditure related unreconciled entries and other assets that classi-
fied as bad and loss as per Bangladesh Bank BRPD Circular 14 dated June 25, 2001.)

13.9 Lease liabilities
Balance as at 1 January 1,405,418,936 -
Add: Interest charge during the year 126,487,704 -
Less: Payment made during the year 423,137,251 -
Balance as at 31 December 1,108,769,389 -
Lease liabilities - non current portion 975,063,036 -

Lease liabilities - current portion 133,706,353 -
1,108,769,389 -
The lease liabilities represents the present value of the lease payments discounting using the incremental borrowing rate as per
IFRS 16 against which right-of- use assets has been arisen (ref: Annex C).
13(a) Consolidated Other liabilities
Foreign currency effect for subsidiaries - -
31,177,706,397 24,800,299,899
Less: Inter- companies transactions
Receivable from BASL - -
Receivable from BA Exchange (UK) Limited 83,868,721 71,073,212
30,873,993,667 24,523,223,592
14 Share capital
14.1 Authorized capital
1,500,000,000 ordinary shares of Taka 10 each 15,000,000,000 15,000,000,000
14.2 Issued, subscribed and fully paid up capital
56,372,480 ordinary shares of Taka 10 each issued for cash 563,724,800 563,724,800
364,010,770 (2010: 243,901,270) ordinary shares of Taka 10 each
Issued as bonus shares 3,640,107,700 3,640,107,700
Right shares issued 25% for the year 2010 1,050,958,100 1,050,958,100
Issued as bonus shares 20% for the year 2011 1,050,958,120 1,050,958,120
Issued as bonus shares 10% for the year 2012 630,574,870 630,574,870
Issued as bonus shares 12% for the year 2016 1,057,511,890 1,057,511,890
Issued as bonus shares 12.50% for the year 2017 1,233,763,870 1,233,763,870
Issued as bonus shares 5% for the year 2018 555,193,740 -
11,659,068,600 11,103,874,860
14.3 Initial public offer (IPO)
Out of the total issued, subscribed and fully paid up capital of the Bank 2,000,000 ordinary shares of Taka 100 each amounting to
Taka 200,000,000 was raised through public offering of shares in 2003

14.4 Capital to risk-weighted asset
322
Notes to the
Amount in Taka
31 Dec 2019 31 Dec 2018
The calculation of CRAR under Basel III has been made as per “Guidelines on Risk Based Capital Adequacy (Revised Regulatory
Capital Framework for banks in line with Basel III)” issued by Bangladesh Bank vide its BRPD Circular no. 18 dated December 21, 2014
Common Equity Tier -1 capital (Going-Concern Capital) In line of Basel III In line of Basel III
Paid up capital 11,659,068,600 11,103,874,860
Statutory reserve (Note 15) 9,052,555,407 8,268,393,179
Retained earnings (Note 17) 1,959,644,131 1,839,667,438
22,679,434,282 21,220,101,622
Less: Regulatory adjustments
Reciprocal crossholding in the CET - 1 Capital of Banking, Financial and Insurance Entities 43,436,430 54,732,730
Common Equity Tier -1 capital (Going-Concern Capital) 22,635,997,852 21,165,368,892
Additional Tier 1 Capital - -
Total Tier- 1 Capital 22,635,997,852 21,165,368,892
Tier - 2 Capital (Gone-Concern Capital)
General provision maintained against unclassified loan/investments 7,674,460,129 5,091,242,413
General provision on off-balance sheet exposure 961,650,585 1,158,027,498
Subordinated non-covertable zero coupon bonds 11,800,000,000 7,400,000,000
Revaluation reserve of securities and fixed assets 1,341,296,217 1,341,296,217
21,777,406,931 14,990,566,128
100 % of revaluation reserve for fixed assets, securities and equity securities 1,341,296,217 1,073,036,973
Maximum Limit of Tier-2Capital (Tier 2 Capital can be maximum up to 4.0% of the total 20,121,138,491 13,917,529,155
RWA or 88.89% of CET1, whichever is higher)
Excess Amount over Maximum Limit of Tier-2 314,972,223 -
Total admissible Tier-2 Capital 20,121,138,491 13,917,529,155
A) Total capital 42,757,136,343 35,082,898,046
B) Total risk weighted assets (RWA) 238,427,232,656 233,085,627,587
C) Required capital 23,842,723,266 23,308,562,759
D) Capital surplus (A-C) 18,914,413,077 11,774,335,287
E) Minimum total capital plus capital conservation buffer requirement @ 12.50% 29,803,404,082 27,678,918,276
(2018 @ 11.875%)
F) Capital surplus (A-E) with capital conservation buffer 12,953,732,261 7,403,979,770
Capital to risk weighted asset ratio
Common Equity Tier- 1 to RWA (minimum 4.5% under Basel III) 9.49% 9.08%
Tier- 1 to RWA ( minimum 6% under Basel III) 9.49% 9.08%
Capital to Risk Weighted Assets against minimum requirement 10% 17.93% 15.05%
14.4 (a) Consolidated capital to risk-weighted asset

The calculation of CRAR under Basel III has been made as per “Guidelines on Risk Based Capital Adequacy (Revised Regulatory Cap-
ital Framework for banks in line with Basel III)” issued by Bangladesh Bank vide its BRPD Circular no. 18 dated December 21, 2014.
Common Equity Tier -1 capital (Going-Concern Capital) In line of Basel III In line of Basel III
Paid up capital 11,659,068,600 11,103,874,860
Non-controlling (Minority) interest 10,196 11,799
Statutory reserve (Note 15) 9,052,555,407 8,268,393,179
Retained earnings (Note 17a) 1,800,257,979 1,686,898,121
22,520,058,326 21,067,344,104
Reciprocal crossholding in the CET - 1 Capital of Banking, Financial and Insurance Entities 43,436,430 54,732,730
Common Equity Tier -1 capital (Going-Concern Capital) 22,476,621,896 21,012,611,374

Bank Asia Limited
Notes to the
Amount in Taka
31 Dec 2019 31 Dec 2018
Additional Tier 1 Capital - -
Tier - 2 Capital (Gone-Concern Capital)

General provision maintained against unclassified loan/investments 7,674,460,129 5,091,242,413
General provision on off-balance sheet exposure 961,650,585 1,158,027,498
Subordinated non-covertable zero coupon bonds 11,800,000,000 7,400,000,000
Revaluation reserve of securities and fixed assets 1,341,296,217 1,341,296,217
21,777,406,931 14,990,566,128
100 % of revaluation reserve for fixed assets, securities and equity securities 1,341,296,217 1,073,036,973
Maximum Limit of Tier-2Capital (Tier 2 Capital can be maximum up to 4.0% of the total 19,979,469,203 13,917,529,155
RWA or 88.89% of CET1, whichever is higher)
Excess Amount over Maximum Limit of Tier-2 456,641,511 -
Total admissible Tier-2 Capital 19,979,469,203 13,917,529,155
A) Total capital 42,456,091,099 34,930,140,528
B) Total risk weighted assets (RWA) 242,096,830,071 236,588,929,108
C) Required capital 24,209,683,007 23,658,892,911
D) Capital surplus (A-C) 18,246,408,092 11,271,247,617
E) Minimum total capital plus capital conservation buffer requirement @ 12.50% 30,262,103,759 28,094,935,332
(2018 @ 11.875%)
F) Capital surplus (A-E) with capital conservation buffer 12,193,987,340 6,835,205,197
Capital to risk weighted asset ratio
Common Equity Tier- 1 to RWA ( minimum 4.5% under Basel III) 9.28% 8.88%
Tier- 1 to RWA ( minimum 6% under Basel III) 9.28% 8.88%
Capital to Risk Weighted Assets against minimum requirement 10% 17.54% 14.76%
14.5 Percentage of shareholdings at the closing date

At 31 December At 31 December At 31 December At 31 December
Category 2019 2019 2018 2018
No. of shares % No. of shares %
Sponsors & Directors 596,898,621 51.20 580,171,212 52.25
General public 169,727,589 14.56 168,707,497 15.19
Institutions 259,623,630 22.27 255,227,403 22.99
Investment companies 133,181,344 11.42 95,345,747 8.59
Non-resident Bangladeshi 2,129,985 0.18 6,690,904 0.60
Foreign investors 4,345,691 0.37 4,244,723 0.38
1,165,906,860 100 1,110,387,486 100
14.6 Classification of shareholders by holding

No. of holders % of total holding
Holding
2019 2018 2019 2018
Less than 5,000 6,836 7,767 0.68 0.83
5,000 to 50,000 1,769 2,150 2.10 2.65
50,001 to 100,000 118 149 0.71 0.95
100,001 to 200,000 49 77 0.58 0.95
200,001 to 300,000 27 41 0.58 0.93
300,001 to 400,000 12 9 0.35 0.27
400,001 to 500,000 12 14 0.47 0.59
324
Notes to the
Amount in Taka
31 Dec 2019 31 Dec 2018
No. of holders % of total holding
Holding
2019 2018 2019 2018
500,001 to 1,000,000 37 30 2.34 1.9
1,000,001 to 10,000,000 70 80 22.27 24.6
Over 10,000,000 30 27 69.92 66.33
8,960 10,344 100.00 100.00

14.7 Name of the Directors and their shareholdings as at 31 December 2019
Closing Opening
Sl Name of the director Status
position position
1 Mr. A Rouf Chowdhury Chairman 23,350,148 22,238,237
2 Mr. Mohd Safwan Choudhury (Representing Phulbari Tea Estates Ltd) Vice Chairman 45,666,246 43,491,664
3 Mr. Romo Rouf Chowdhury Vice Chairman 23,323,746 22,213,092
4 Mr. Rumee A Hossain Director 34,416,554 32,177,671
5 Mrs. Hosneara Sinha Director 53,184,729 50,652,123
6 Ms. Naheed Akhter Sinha Director 55,842,838 53,183,656
7 Ms. Romana Rouf Chowdhury (Representing Maya Limited) Director 41,679,196 39,694,473
8 Maj. Gen. Mohammad Matiur Rahman (Retd.) Director 23,401,435 22,287,081
(Representing Sinha Fashions Limited)
9 Ms. Farhana Haq Director 54,907,244 52,211,661
10 Mr. Enam Chowdhury (Representing Amiran Generations Limited) Director 47,558,630 45,293,934
11 Mr. M Shahjahan Bhuiyan (Independent Director) Director - -
12 Mr. Md. Nazrul Huda (Independent Director) Director - -
13 Mr. Dilwar H Choudhury (Independent Director) Director - -
14 Mr. Ashraful Haq Chowdhury (Independent Director) Director - -
15 Statutory reserve
Balance at the beginning of the year 8,268,393,179 7,345,137,782
Add: Addition during the year (20% of pre-tax profit) 784,162,228 923,255,397
Balance at the end of the year 9,052,555,407 8,268,393,179
16 Revaluation reserve
HTM securities (Note 16.1) 20,176,016 16,504,049
HFT securities (Note 16.2) 7,434,933 11,740,204
Fixed Assets revaluation (Note 16.3) 2,038,072,687 2,091,787,951
2,065,683,636 2,120,032,204
16.1 Revaluation reserve on HTM securities
Balance at 1 January 16,504,049 8,880,978
Gain from revaluation on investments 14,919,561 9,815,237
Adjustment for sale/maturity of securities (11,247,594) (2,192,166)
20,176,016 16,504,049

16.2 Revaluation reserve on HFT securities
Balance at 1 January 11,740,204 -
Gain from revaluation on investments 492,331,474 934,571,047
Adjustment for sale/maturity of securities (496,636,745) (922,830,843)
7,434,933 11,740,204
16.3 Revaluation reserve on Fixed Assets

Depreciation charged during the year (53,715,264) (53,715,264)
2,038,072,687 2,091,787,951
16 (a) Consolidated Revaluation reserve

Bank Asia Limited
Notes to the
Amount in Taka
31 Dec 2019 31 Dec 2018
2,065,683,636 2,120,032,204
17 Retained earnings
Add: Post - tax profit fot the year 1,960,811,140 2,266,276,987
Revaluation reserve transferred to retained earnings 53,715,264 53,715,264
3,854,193,842 3,996,686,706
Less: Issue of bonus shares for the year 2017 - 1,233,763,870
Issue of cash dividend for the year 2018 555,193,743 -
Issue of bonus shares for the year 2018 555,193,740
Transfer to statutory reserve 784,162,228 923,255,397
1,894,549,711 2,157,019,267
1,959,644,131 1,839,667,438
17(a) Consolidated Retained earnings
Add: Foreign exchange revaluation reserve for opening retained earnings (3,618,945) 2,494,969
Revaluation reserve transferred to retained earnings 53,715,264 53,715,264
Post- tax profit for the year 1,957,811,647 2,233,390,509
Adjustment of non controlling interest 1,693 -
Less: Non controlling interest 90 76
3,694,807,690 3,843,917,389
Less: Issue of bonus shares for the year 2017 - 1,233,763,870
Issue of cash dividend for the year 2018 555,193,743 -
Issue of bonus shares for the year 2018 555,193,740
Transferred to statutory reserve 784,162,228 923,255,397
1,894,549,711 2,157,019,267
1,800,257,979 1,686,898,121
17(b) Non-controlling (Minority) interest
Bank Asia Securities Limited 10,196 11,799
10,196 11,799
18 Contingent liabilities
120,617,276,961 137,459,256,487
Acceptances and endorsements (Note 18.1)
39,192,489,873 48,569,391,593
Letters of guarantee
36,999,351,447 41,312,967,803
Irrevocable letters of credit
26,468,819,479 30,327,687,774
Bills for collection
326
Notes to the
Amount in Taka
31 Dec 2019 31 Dec 2018
15,916,199,719 16,015,469,958
Other commitments
2,040,416,443 1,233,739,359
120,617,276,961 137,459,256,487
18.1 Acceptances and endorsements

39,192,489,873 48,569,391,593
18.2 Letters of guarantee

Letters of guarantee (Local) 23,279,766,953 20,747,116,559
Letters of guarantee (Foreign) 13,719,584,494 20,565,851,244
36,999,351,447 41,312,967,803
Balance for which the Bank is contingently liable in respect of guarantees issued favouring:
Directors or officers - -
Government 27,928,576,899 29,036,809,306
Banks and other financial institutions 925,708,758 1,489,804,673
Others 8,145,065,790 10,786,353,825
36,999,351,447 41,312,967,803
18.3 Irrevocable letters of credit
Letters of credit Back to Back (Inland) 3,394,140,530 2,847,330,194
Letters of credit (General) 19,708,039,248 23,821,302,958
Back to back L/C 3,337,363,390 3,631,713,277
26,439,543,168 30,300,346,429
18.4 Bills for collection

Local bills for collection 10,467,042,903 9,524,744,721
Foreign bills for collection 5,449,156,816 6,490,725,237
15,916,199,719 16,015,469,958
18.5 Other commitments

Forward Assets Purchased and Forward Deposits Placed 2,040,416,443 1,233,739,359
18.6 Workers’ profit participation fund (WPPF)

As per Bangladesh Labour Act 2006 and SRO no. 336/Law/2010, all companies falling within the scope of WPPF are required to
provide 5% of its profit before charging such expense to their eligible employees within the stipulated time. Bank obtained opinion
from its legal advisor regarding this issue which stated that the Bank is not required to make provision for WPPF as it is not within the
scope of WPPF. As such the Bank did not make any provision during the year for WPPF.
19 Income statement
Income:
Interest, discount and similar income (Note 19.1) 26,103,448,197 23,190,136,141
Dividend income (Note 22.1) 51,407,464 31,854,449

Bank Asia Limited
Notes to the
Amount in Taka
31 Dec 2019 31 Dec 2018
Fees, commission and brokerage (Note 19.2) 1,610,106,976 1,489,282,892
Gains/ less Losses arising from dealing securities - -
Gains/ less Losses arising from investment securities 1,348,918 154,880
Gains/ less Losses arising from dealing in foreign currencies (Note 23.1) 1,751,261,150 1,501,411,105
Income from non-banking assets - -
Other operating income (Note 24) 1,018,730,455 917,723,225
Profit/ less Losses on interest rate changes - -
30,536,303,160 27,130,562,692
Expenses:
Interest paid/profit shared on deposits and borrowings, etc (Note 21) 14,462,380,548 13,007,993,495
Administrative expenses (Note 19.3) 4,102,698,154 3,921,619,606
Other expenses (Note 34) 1,887,668,330 1,734,164,998
Depreciation on banks assets (Note 33.1) 761,091,855 406,406,674
21,213,838,887 19,070,184,773
9,322,464,273 8,060,377,919
19.1 Interest, discount and similar income
Interest income/profit on investments (Note 20) 22,863,139,585 20,910,683,339
Interest on treasury bills/reverse repo/bills 3,074,953,797 2,051,028,806
Interest income on corporate bonds 141,812,731 153,014,471
Interest on debentures - -
Income from investment in shares, bonds etc - -
Capital gain on Government securities and assets 23,542,084 75,409,525
26,103,448,197 23,190,136,141

Figures of previous year have been rearranged, wherever considered necessary, to conform the current year’s presentation.
19.2 Fees, commission and brokerage
Commission 1,610,106,976 1,489,282,892
Brokerage - -
1,610,106,976 1,489,282,892
19.3 Administrative expenses

Salaries and allowances (Note 25) 3,266,449,893 2,882,190,002
Rent, taxes, insurance, electricity, etc (Note 26) 440,093,246 684,528,849
Legal expenses (Note 27) 20,534,559 25,213,849
Postage, stamp, telecommunication, etc (Note 28) 124,471,658 108,489,491
Stationery, printing, advertisement, etc (Note 29) 156,689,993 133,450,519
Managing Director's salary and fees (Note 30) 16,572,420 13,900,000
Directors' fees (Note 31) 3,424,000 3,656,000
Auditors' fees (Note 32) 1,478,225 875,500
Repair of Bank's assets (Note 33.1) 72,984,160 69,315,396
4,102,698,154 3,921,619,606
20 Interest income/profit on investments

22,891,407,032 20,993,217,540
Less: inter transaction between OBU and Conventional banking 28,267,447 82,534,201
22,863,139,585 20,910,683,339

Agricultural loan 332,659,093 282,113,500
Cash credit/Bai Murabaha (Muajjal) 477,480,468 457,037,796
328
Notes to the
Amount in Taka
31 Dec 2019 31 Dec 2018
Credit card 415,843,541 324,100,884
Credit for poverty alleviation scheme-micro credit 295,388 92,816
Consumer credit scheme 1,293,440,738 1,143,490,482
Demand loan 3,743,496,347 3,569,955,613
Export Development Fund (EDF) 275,917,006 244,863,066
House building loan 113,021,311 129,927,048
Loans (General)/Musharaka 1,960,409,510 1,557,474,933
Loans against trust receipts/ Bai Murabaha post import 1,342,255,595 1,409,455,469
Overdrafts/ Quard against scheme 4,104,797,684 3,773,890,004
Packing credit 41,612,011 45,821,049
Payment against documents 15,135,149 29,834,321
Staff loan 73,896,843 65,997,862
Transport loan 198,006,038 188,674,213
Term loan- industrial 2,448,635,975 1,930,763,463
Term loan- others/ Hire purchase under Shirkatul Melk 2,534,322,559 2,522,781,275
Foreign bills purchased 19,527,512 11,811,596
Local bills purchased 202,427,713 205,907,068
Total interest/profit on loans and advances/investments 19,593,180,481 17,893,992,458
Interest/profit on balance with other banks and financial institutions 2,071,621,354 2,004,980,786
Interest/profit received from foreign banks 60,501,950 12,623,999
21,725,303,785 19,911,597,243
20(a) Consolidated Interest income/profit on investments
Bank Asia limited 22,863,139,585 20,910,683,339
Bank Asia Securities Ltd 321,231,320 313,770,644
23,184,370,905 21,224,453,983
22,974,067,272 21,010,148,200
21 Interest paid/profit shared on deposits and borrowings etc.

14,490,647,995 13,090,527,696
Less: inter transaction with OBU 28,267,447 82,534,201
14,462,380,548 13,007,993,495

Interest paid/profit shared on deposits
Fixed deposits/ Mudaraba Fixed deposit 5,729,597,318 4,481,297,453
Scheme deposits 5,106,327,157 5,150,743,459
Sanchaya plus 22,011,682 52,999,719
Savings deposits/ Mudaraba Savings bank 1,231,128,548 1,072,706,104
Special notice deposits 688,775,835 537,248,560
12,777,840,540 11,294,995,295
Interest on borrowings and others
Local banks including Bangladesh Bank 83,654,999 160,134,035
Interest on subordinated non-covertable bond 762,314,302 826,740,041
Foreign banks 1,169,138 278,829
847,138,439 987,152,905

Bank Asia Limited
Notes to the
Amount in Taka
31 Dec 2019 31 Dec 2018
13,624,978,979 12,282,148,200
21(a) Consolidated Interest Expenses/profit paid on Deposits

Bank Asia Securities Ltd - -
14,674,889,939 13,225,523,747
14,464,586,306 13,011,217,964
22 Investment income
3,293,064,994 2,311,462,131
22.1 Conventional and Islamic Banking

Interest on treasury bills 670,410,633 212,456,854
Interest on treasury bonds 2,366,047,464 1,817,182,647
Interest income on corporate bonds 141,812,731 153,014,471
Interest on Islamic bonds 31,211,410 20,850,530
Capital gain from investment in shares 1,348,918 154,880
Dividend on shares 51,407,464 31,854,449
Capital gain on Government securities 23,542,084 75,409,525
Interest on reverse repo 7,284,290 538,775
3,293,064,994 2,311,462,131
22(a) Consolidated investment income
3,293,064,994 2,311,462,131
23 Commission, exchange and brokerage

3,361,368,126 2,990,693,997

Commission on L/C 41,348,963 79,860,743
Commission on back to back L/C 835,085,521 806,732,966
Fees and commission including Export 335,748,324 187,487,482
Commission on L/G 341,559,858 360,507,918
Commission on export 6,772,710 8,806,450
Commission on PO, DD, TT, TC, etc 24,714,096 21,979,775
Other commission 11,175,934 13,194,161
1,596,405,406 1,478,569,495
Foreign exchange gain 1,751,261,150 1,501,411,105
3,347,666,556 2,979,980,600
23(a) Consolidated Commission, exchange and brokerage
330
Notes to the
Amount in Taka
31 Dec 2019 31 Dec 2018
3,495,510,223 3,110,434,216
24 Other operating income
Conventional and Islamic banking (Note 24.1) 990,421,481 891,643,815
1,018,730,455 917,723,225
Locker charge 11,975,125 11,407,510
Service and other charges 536,740,372 479,149,066
Master/Visa card fees and charges 241,919,424 206,373,235
Postage/telex/SWIFT/fax recoveries 127,286,381 118,436,866
Profit on sale of fixed assets 8,753,381 4,405,572
Non-operating income 8,137,975 8,466,596
Rebate on nostro account 39,467,833 42,670,132
Other income from brokerage 16,140,990 20,734,838
990,421,481 891,643,815
24 (a) Consolidated other operating income
BA Exchange Company (UK) Limited 2,661,714 433,766
BA Express USA, Inc 948,684 554,369
1,052,116,649 985,191,390
25 Salaries and allowances
3,266,449,893 2,882,190,002
Basic salary 1,236,906,707 1,049,325,671
Allowances 1,249,136,318 1,074,786,083
Festival bonus 196,721,513 171,674,192
Gratuity 202,400,000 222,400,000
Provident fund contribution 111,297,360 96,885,151
Performance bonus 269,987,995 267,118,905
3,266,449,893 2,882,190,002
25(a) Consolidated Salaries and allowances
3,360,493,052 2,963,638,772
26 Rent, taxes, insurance, electricity etc.
Off-shore banking unit 257,549 260,214
440,093,246 684,528,849

Bank Asia Limited
Notes to the
Amount in Taka
31 Dec 2019 31 Dec 2018
Rent, rate and taxes (Note 26.1.1) 26,712,121 405,338,783
Insurance 169,710,299 165,523,467
Power and electricity 116,925,573 113,406,385
Interest portion on lease liabilities (Note 26.1.1) 126,487,704 -
439,835,697 684,268,635
26.1.1 Total rent expenses for the year 2019 was Tk 423,137,251 as per IAS 17. To implement “IFRS 16: Lease” this rent expense has
been adjusted with depreciation Tk 326,661,553 arises against right-of-use assets (ref: Annex C) and interest expenses
Tk 126,487,704 arises against lease liabilities.
26(a) Consolidated Rent, taxes, insurance, electricity etc.
Bank Asia Limited 440,093,246 684,528,849
471,721,301 714,978,997
27 Legal expenses
Off-shore banking unit 420,113 -
20,534,559 25,213,849

Legal expenses 20,114,446 25,213,849
Other professional charges - -
20,114,446 25,213,849
27(a) Consolidated Legal expenses

Bank Asia Securities Ltd 818,600 609,628
BA Exchange Company (UK) Limited 444,004 1,329,275
22,218,779 27,388,071
28 Postage, stamps, telecommunication etc.

124,471,658 108,489,491

Telephone, courier and postage 77,977,767 65,967,767
Master/VISA card process fee 25,589,255 22,502,359
ATM charge 1,822,152 1,584,183
SWIFT and Reuter charge 16,709,367 15,902,887
Internet 1,652,721 1,752,472
123,751,262 107,709,668
28(a) Consolidated Postage, stamps, telecommunication etc.

BA Exchange Company (UK) Limited 570,892 598,814
332
Notes to the
Amount in Taka
31 Dec 2019 31 Dec 2018

126,842,671 111,154,986
29 Stationery, printing, advertisements etc.
156,689,993 133,450,519
Office and security stationery 74,489,241 61,169,752
Calendar, diary, souvenir, etc 23,803,440 25,497,895
ATM card /Supplies And Stationeries 30,226,705 15,751,549
Books and periodicals 1,609,580 2,054,194
Publicity and advertisement 26,510,466 28,918,417
156,639,432 133,391,807
29(a) Consolidated Stationery, printing, advertisements etc.
BA Express USA, Inc 221,243 1,343,455
159,503,843 136,747,954
30 Managing Director’s salary and fees

Basic salary 7,801,613 6,000,000
House rent allowance 1,860,484 1,500,000
Entertainment allowances 420,162 300,000
Incentive bonus 1,000,000 1,000,000
Festival bonus 1,210,000 1,100,000
Utility allowance and others 1,200,000 1,200,000
House maintenance allowance 600,000 600,000
Provident fund 780,161 600,000
Leave fare assistance 1,700,000 1,600,000
16,572,420 13,900,000
31 Directors’ fees
Directors’ fees 3,424,000 3,656,000
31(a) Consolidated Directors’ fees

Bank Asia Securities Ltd. 302,400 230,000
3,726,400 3,886,000
32 Auditors’ fees
Audit fees 1,478,225 875,500
Others - -
1,478,225 875,500
32(a) Consolidated Auditors fees

Bank Asia Limited
Notes to the
Amount in Taka
31 Dec 2019 31 Dec 2018
Bank Asia Limited 1,478,225 875,500
Bank Asia Securities Ltd 95,833 95,833
BA Exchange Company (UK) Limited 630,240 650,649
3,440,259 2,913,042
33 Depreciation and repair of Bank’s assets

834,076,015 475,722,070

Depreciation 761,091,855 406,406,674
Repairs:
Building 10,055,315 6,477,977
Furniture and fixtures 3,583,154 1,381,017
Equipments 19,297,980 6,990,839
32,936,449 14,849,833
Maintenance 40,047,711 54,465,563
834,076,015 475,722,070
33(a) Consolidated Depreciation and repairs of Bank’s assets

842,466,683 480,859,178
34 Other expenses
1,887,668,330 1,734,164,998

Car expenses 324,170,297 327,603,784
Contractual service expenses 744,761,162 653,073,820
Computer expenses 168,235,611 154,704,899
Other management and administrative expenses 246,377,129 205,074,053
Commission paid to agents 153,238,259 65,197,958
Entertainment 63,159,412 49,288,292
AGM/EGM expenses 1,528,027 3,451,105
Payment to superannuation fund 7,320,000 7,320,000
Donation and subscription to institutions 103,516,418 192,002,911
Travelling expenses 37,390,737 40,157,362
Training and internship 18,106,353 22,478,413
Directors' travelling expenses 682,266 69,600
Sharia council fees 500,000 500,000
1,868,985,671 1,720,922,197
34(a) Consolidated other expenses
334
Notes to the
Amount in Taka
31 Dec 2019 31 Dec 2018
1,914,318,567 1,767,128,995
34(b) Provision for loans and advances/investments and off-balance sheet items
Off-shore banking unit (12,723,002) 59,942,287
5,401,653,133 3,444,100,932
Break up of provision for loans and advances/Investments is shown below:
General provision
Conventional and Islamic banking 2,860,517,628 933,259,584
Off-shore banking unit (12,630,144) 56,796,306
2,847,887,484 990,055,890
Specific provision
Off-shore banking unit - 3,326,356
2,805,142,562 2,604,517,014
Provision for off-balance sheet items
Conventional and Islamic banking (196,284,055) (172,791,597)
Off-shore banking unit (92,858) (180,375)
(196,376,913) (172,971,972)
Provision for diminution in value of investments (80,000,000) 10,000,000
Other provisions 25,000,000 12,500,000
5,401,653,133 3,444,100,932
34(c) Consolidated Provision for loans and advances/investments
Bank Asia Securites Limited:
Specific Provision 36,000,000 110,000,000
Provision for diminution in value of investments 13,934,688 -
Other provisions - -
36,000,000 110,000,000
5,451,587,821 3,554,100,932
35 Receipts from other operating activities
Conventional and Islamic banking (Note 35.1) 1,015,312,483 967,208,220
1,043,621,457 993,287,630
Locker charge 11,975,125 11,407,510
Service and other charges 536,740,372 479,149,066
Master card fees and charges 241,919,424 206,373,235
Postage/telex/SWIFT/ fax recoveries 127,286,381 118,436,866
Non-operating income 97,391,181 151,841,543
1,015,312,483 967,208,220
35(a) Consolidated Receipts from other operating activities

Bank Asia Limited
Notes to the
Amount in Taka
31 Dec 2019 31 Dec 2018
1,077,007,651 1,060,755,795
Less: inter- companies transactions - -
1,077,007,651 1,060,755,795
36 Payments for other operating activities

2,494,242,438 2,570,828,687

Rent, rates and taxes 439,835,697 684,268,635
Legal expenses 20,534,559 25,213,849
Directors' fees 3,424,000 3,656,000
Postage, stamp, telecommunication, etc 124,471,658 108,489,491
Other expenses 1,868,985,671 1,720,922,197
Managing Director's salary 16,572,420 13,900,000
Auditors' fee 1,478,225 875,500
2,475,302,230 2,557,325,672
36(a) Payments for other operating activities

2,558,840,397 2,641,350,091
37 Earnings per share (EPS)

Net profit after tax (Numerator) 1,960,811,140 2,266,276,987
Number of ordinary shares outstanding (Denominator) 1,110,387,486 1,110,387,486
Issue of bonus shares 5% 55,519,374 55,519,374
Earnings per share (EPS) 1.68 1.94
Earnings per share has been calculated in accordance with IAS 33: “Earnings Per Share (EPS)”. Earnings per share for previous period
has been restated since the bonus issue is an issue without consideration of cash. It is treated as if it has occurred prior to the begin-
ning of 2018, the earliest period reported. Actual EPS for December 2018 was Taka 2.04.
37(a) Consolidated Earnings per share (EPS)

Net profit after tax (Numerator) 1,957,811,647 2,233,390,509
Earnings per share (EPS) 1.68 1.92
38 Number of employees
The number of employees receiving remuneration of Taka 36,000 or above per employee per year were 2,376 (2018: 2,256).

39 Audit committee
The Audit Committee of the Board of Directors of Bank Asia Limited was constituted in the 44th meeting of the Board held on Janu-
ary 18, 2003 in compliance with the Bangladesh Bank directives. The Audit Committee was formed with the objectives to establish a
platform for a compliant and secured banking structure in the Bank. The present Audit Committee was reconstituted by the Board in
336
Notes to the
the 409th meeting held on April 30, 2019 consisting of the following members:
Name Status with the Board Status with the Audit Committee
Mr. Dilwar H Choudhury Independent Director Chairman
Mr. Mohd. Safwan Choudhury Vice Chairman Member
Major General Mohammad Matiur Rahman (retd.) Director Member
Mr. Ashraful Haq Chowdhury Independent Director Member
The Company Secretary of the Bank acts as the Secretary of the Committee.
No. of meeting Date No. of meeting Date
200th Audit 21st March, 2019 204th Audit 11th September, 2019
201st Audit 29th April, 2019 205th Audit 23rd October, 2019
202nd Audit 10th July, 2019 206th Audit 2nd December, 2019
203 Audit
rd
31 July, 2019
st

In the year 2019, 07 (seven) meetings of the Audit Committee were held in which, the following issues, amongst others, were re-
viewed and discussed:
1 External Audit Report of the Bank and the recommendations made therein.
2 Bangladesh Bank comprehensive inspection report and the recommendations made therein.
3 Audit and Inspection reports on the branches, divisions and departments of the Corporate Office prepared by the Internal Control
and Compliance Division (ICCD) of the Bank.
4 Actions taken by the management with regard to shortcomings raised in the Bangladesh Bank Inspection report and by the Inter-
nal Audit Team of the Bank.
5 The corrective measures taken by the management with regard to the lapses pointed out on the internal control and other issues
raised by internal and external auditors and inspectors of the regulatory authority.
6 The compliance status of the audit objections and the recommendations made by the Bangladesh Bank Inspectors, External
Auditors and the Internal Auditors in the reports.
7 Management Report on Accounts of the Bank for the year ended on 31.12.2018.
8 Implementation of Core Risk Management Guidelines including Internal Control and Compliance Risk and compliance thereof.
9 Review of status of recovery of classified loans and necessary guidelines provided to the management to reduce Non Performing
Loan (NPL).
The Audit Committee has further satisfied that
* The rules and regulations of the Bangladesh Bank and all other regulatory authorities and Bank’s own policy guidelines approved
by the Board of Directors are duly complied with.
* Adequate internal control and security measures have been taken by the Bank facilitating Information Technology (IT) based
banking including generation of proper Management Information System (MIS).
* The system of internal control and business processes have been strengthened including development of human resources
towards creation of a compliance culture in the Bank.
* Efforts have been made to keep assets of the Bank safe along with liabilities and commitments being transparent.
* The Financial Statements of the Bank have been prepared in accordance with International Accounting Standards (IAS) and
International Financial Reporting Standards (IFRS) which contained full disclosure.
40 RELATED PARTY TRANSACTIONS
While making any related party transactions the management always pays proper attention to economic efficiency and competitive
pricing and necessary approval of Bangladesh Bank and other authorities had been obtained wherever applicable. Significant related
party transactions of the Bank for the period January – December 2019 is given below:
Transaction
Name of Organization Relationship Service Type
amount (Tk.)
Common Directors / Close
Agro Food Services Ltd. Office Rent 18,204,129
family members Director
Romask Ltd -do- Printing 54,167,282
Rangs Industries Ltd. -do- Electronics items provider 143,400

Bank Asia Limited
Notes to the
Transaction
Name of Organization Relationship Service Type
amount (Tk.)
Garda Shield Security Service Ltd. -do- Maintenance 1,755,751
Rangs workshop Ltd -do- Car repair and Services 2,384,644
Ranks ITT Ltd. -do- Network Connectivity fees 96,331,449
Car providers & Car repair and
DHS Motors -do- 670,069
Services
Shield Security Service -do- Security Service providers 246,193,140
Green Bangla -do- Tree Plantation 579,492
Reliance Insurance -do- Insurance Service 37,055,997
The Daily Star -do- Advertising 6,642,088
Rangs Limited -do- Car providers 3,334,055
Ali Estates Limited -do- Office Rent 247,938,038
Rangs Motors Limited -do- Machinery Equipments provider 2,021,907
Rangs Power Tech Limited -do- Machinery Equipments provider 3,660,700
Rancon Industrial Solutions Limited -do- Machinery Equipments provider 23,499,287
M/s. M Ahmed Tea & Land Co. Ltd. -do- Office Rent 270,000
Opex Fashions Limited -do- Office Rent 3,308,850
Rancon Motor Bikes Ltd -do- Motor Bike 7,120,000
Enterprise Asia Ltd -do- Advance Office Rent 293,784,960
ERA Infotech Associate Company Software vendor 84,931,606
During the year 2019, Directors and their interest in different entities are given in Annexure F:
40.1 Key Management personnel compensation
Transactions with Key Management personnel of the Bank for the period January – December 2019 is given below:
Particulars Amount Tk
Short-term employee benefit 98,314,668
Key Management personnel includes President and Managing Director, 05 nos. Deputy Managing Director, 08 nos Senior Executive Vice Presi
dent, Company Secretary, Head of Internal Control & Compliance Division and Chief Financial Officer.
Key management personnel get car facilities and leave fare assistance as per existing company policy. In addition gratuity, benevolent and
superannuation fund benefits are provided as per service rule if eligible.
41 COVERAGE OF EXTERNAL AUDIT
The external auditors of the Bank, ACNABIN , Chartered Accountants worked about 26,500 person hours. They have reviewed more
than 80% of the Bank’s risk weighted assets as at the Balance Sheet date.
42 SHARE TRADING
The bank started trading its ordinary shares in CDBL on 30 January 2006. The closing market price on 31 December 2019 was Tk. 18.20
(2018: Tk. 17.70) at DSE and Tk. 18.50 at CSE (2018: 17.70).
43 EVENTS AFTER THE REPORTING PERIOD
The Board of Directors in its 428th meeting held on March 22, 2020 has recommended 10 % cash dividend subject to the approval of the
shareholders at the next Annual General Meeting.
Other than this, no material events which have occurred after the reporting period which could affect the values stated in the financial
statements.
338
Ensure sustainable consumption and
production patterns
“Nature provides a free lunch but only if we control our appetite”
– William Ruckelshaus
1.3 billion tons of food is wasted every year, while almost

2 billion people go hungry or undernourished. If people
everywhere switched to energy efficient lightbulbs, the
world would save US$120 billion annually. One-fifth of
the world’s final energy consumption in 2013 was from
renewable sources.
About 5.5% of the total procured food is wasted of which

3% is wasted during procurement and preparation stage,
1.4% during serving and another 1.1% from the plates.
Waste management system in Bangladesh comprising
formal, community initiative and informal system is still
not well organized.
Disbursed
Net savings of Spent Tk. 116.15
Tk. 3650.36
Tk. 8.9 million million as
million to
71,458 rural from green Corporate Social
farmers banking activities Responsibilities

Bank Asia Limited
340
Bank Asia Limited
Highlights on the overall activities
Amount in Taka Amount in USD

Sl no. Particulars
2019 2018 2019 2018
1 Paid-up Capital 11,659,068,600 11,103,874,860 139,046,733 132,425,460
2 Total Capital 42,757,136,343 35,082,898,046 509,924,107 418,400,692
3 Capital (deficiet)/surplus 18,914,413,077 11,774,335,287 225,574,396 140,421,411
4 Total Asset 353,800,373,697 307,291,400,556 4,219,443,932 3,664,775,200
5 Total Deposit 253,709,574,615 222,471,716,244 3,025,755,213 2,653,210,689
6 Total loans and advances / investments 227,298,956,048 214,618,151,145 2,710,780,633 2,559,548,612
7 Total contingent liabilities and commitments 120,617,276,961 137,459,256,487 1,438,488,694 1,639,347,126
8 Credit deposit ratio 76.47% 81.75% 76.47% 81.75%
Percentage of classified loans / investments against total loans and advances /
9 4.61% 4.10% 4.61% 4.10%
investments
10 Profit after tax and provision 1,960,811,140 2,266,276,987 23,384,748 27,027,752
11 Amount of classified loans/investments during current year 10,479,985,000 8,809,830,429 124,984,914 105,066,553
12 Provisions kept against classified loans / investments 4,604,656,791 3,892,759,378 54,915,406 46,425,276
13 Provision surplus against classified loans / investments 1,843,000 5,114,917 21,980 61,001
14 Cost of fund 8.26% 8.25% 8.26% 8.25%
15 Interest earning assets 312,059,883,788 278,695,296,655 3,721,644,410 3,323,736,394
16 Non-interest earning assets 41,740,489,909 28,596,103,901 497,799,522 341,038,806
17 Return on investment (ROI) [PAT/(Shareholders' equity + Borrowing)] 2.76% 3.65% 2.76% 3.65%
18 Return on assets (ROA) [PAT/ Average assets] 0.59% 0.76% 0.59% 0.76%
19 Income from investment 3,293,064,994 2,311,462,131 39,273,286 27,566,632
20 Capital adequacy 17.93% 15.05% 17.93% 15.05%
21 Earnings per share 1.68 2.04 1.68 2.04
22 Net income per share 1.68 2.04 1.68 2.04
23 Price earning ratio 10.83 8.67 10.83 8.67
Exchange rate used 1 USD equivalent to BDT 83.85 (2018: BDT 82.75)
Annex A
Bank Asia Limited

Balance with other banks-Outside Bangladesh (Nostro Account)
2019 2018
Account Currency
Name of the Bank Exchange Equivalent Exchange Equivalent
type type FC amount FC amount
rate Taka rate Taka
Conventional and Islamic banking:
Interest bearing
Citibank N.A., London CD EURO 4,926 94.90 467,484 283,054 95.40 23,748,210
Citibank N.A., London CD GBP 109,546 111.00 12,159,468 60,116 106.00 6,372,266
Citibank NA, New York CD USD 6,142,685 84.90 521,514,002 3,571,856 83.90 299,678,693
Habib American Bank, New York CD USD 21,331,505 84.90 1,811,044,754 11,405 83.90 956,850
Mashreqbank psc, New York CD USD 301,683 84.90 25,612,854 2,403 83.90 201,571
Standard Chartered Bank, Mumbai CD ACU 522,551 84.90 44,364,591 15,725 83.90 1,319,346
Standard Chartered Bank, New York CD USD 4,893,595 84.90 415,466,240 7,960,890 83.90 667,918,664
2,830,629,394 1,000,195,600
Non-interest bearing :
AB Bank Ltd, Mumbai CD ACU 105,276 84.90 8,937,928 18,621 83.90 1,562,296
Al Rajhi Bank, KSA CD SAR 1,269,434 22.60 28,689,207 5,817 22.00 127,982
AXIS Bank Ltd CD ACU 313,480 84.90 26,614,444 - - -
HDFC Bank Limited , Mumbai , India CD ACU 2,134 84.90 181,135 - - -
AKTIF Bank, Istanbul -JPY CD JPY 3,172,128 0.80 2,537,702 - - -
Bank of Sydney CD AUD 41,936 59.25 2,484,730 16,877 59.00 995,746
Bhutan National Bank Ltd, Thimphu CD USD 154,786 84.90 13,141,369 177,410 83.90 14,884,715
Commerzbank AG, Frankfurt CD USD 75,391 84.90 6,400,720 8,833,964 83.90 741,169,583
Mashreqbank PSC (Dubai AE) CD AED 1,920,270 23.10 44,358,240 55,878 22.06 1,232,672
Commerzbank AG, Frankfurt CD EURO 201,401 94.90 19,112,994 927,101 95.40 88,445,423
Habib Metropolitan Bank Ltd, Karachi CD ACU 182,616 84.90 15,504,093 34,353 83.90 2,882,244
ICICI Bank Ltd, Hongkong CD USD 124,587 84.90 10,577,408 72,765 83.90 6,105,011
ICICI Bank Ltd, Mumbai CD ACU 786,959 84.90 66,812,789 6,439 83.90 540,261
JP Morgan Chase Bank, New York CD USD 543,176 84.90 46,115,611 4,173 83.90 350,075
Mashreqbank psc, Mumbai (EURO) CD EURO 8,054 94.90 764,315 8,054 95.40 768,342
Muslim Commercial Bank Ltd, Colombo CD ACU 177,891 84.90 15,102,974 158,565 83.90 13,303,597
Nepal Bangladesh Bank Ltd, Kathmandu CD ACU 88,215 84.90 7,489,419 200,507 83.90 16,822,578
Saudi Hollandi Bank, KSA CD SAR - - - 595,001 22.00 13,090,027
Unicredit Bank AG Munich CD EURO 10,805 94.90 1,025,425 26,065 95.40 2,486,562
Wells Fargo Bank N.A, New York CD USD 140,482 84.90 11,926,957 48,701 83.90 4,085,974
Wells Fargo Bank N.A, London CD EURO 38,105 94.90 3,616,182 19,576 95.40 1,867,588
Zurcher Kantonal Bank, Switzerland CD CHF 21,157 86.60 1,832,183 6,618 84.55 559,550
333,225,824 911,280,226
Off-shore banking unit:
Bank Asia Limited

Commerzbank AG, Frankfurt CD EURO 1,071 113.17 121,161 36,082 111.71 4,030,817
Habib American Bank, New York CD USD 5,457,470 83.85 457,608,880 5,581,042 82.75 461,831,233
Sonali Bank, London CD GBP 3 134.15 440 3 133.13 434
457,730,481 465,862,484
3,621,585,699 2,377,338,310
341
342
Annex B
Bank Asia Limited

Investment in Shares
No. of shares Quoted rate per Total market Unrealized prof-

SL. Face Cost of Cost of Per
Name of the company including share as at 31 value as at 31 it/ (loss) as at 31
No. value holding Share
bonus shares Dec 2019 Dec 2019 Dec 2019
Quoted Shares
1 AB Bank Limited 10 141,912 9,721,000 68.50 7.90 1,121,105 (8,599,895)
2 Dhaka Bank Limited 10 558,197 15,813,721 28.33 12.00 6,698,364 (9,115,357)
3 Exim Bank Limited 10 1,877,123 38,582,386 20.55 10.10 18,958,942 (19,623,444)
4 Golden Son Limited 10 119,185 8,586,791 72.05 6.70 798,540 (7,788,251)
5 Lanka Bangla Finance Limited 10 1,247,636 59,764,883 47.90 18.00 22,457,448 (37,307,435)
6 Mercantile Bank Limited 10 483,000 10,495,590 21.73 13.20 6,375,600 (4,119,990)
7 Phoenix Finance and Investments Limited 10 1,177,770 49,442,785 41.98 21.50 25,322,055 (24,120,730)
8 Prime Finance & Investment Limited 10 72,576 12,001,821 165.37 7.50 544,320 (11,457,501)
9 Prime Insurance Company Limited 10 60,564 5,466,943 90.27 26.00 1,574,664 (3,892,279)
10 Reliance Insurance Limited 10 139,977 7,343,193 52.46 43.50 6,089,000 (1,254,193)
11 Southeast Bank Limited 10 1,356,308 34,735,048 25.61 13.40 18,174,527 (16,560,521)
12 United Commercial Bank Limited 10 2,499,411 63,784,968 25.52 13.30 33,242,166 (30,542,802)
13 Premier Bank Limited 10 2,887,500 40,511,625 14.03 12.50 36,093,750 (4,417,875)
14 The ACME Laboratories Limited 10 1,000,000 57,650,000 57.65 60.90 60,900,000 3,250,000
A. Provision requirement for quoted shares 413,900,754 238,350,481 (175,550,273)
Available cash balance 38,038,611
451,939,365
Mutual Fund
15 1st Janata Bank Mutual Fund 10 7,248,082 50,000,000 6.90 4.30 31,166,753 -
16 MBL 1st Mutual Fund 10 5,000,000 50,000,000 10.00 6.10 30,500,000 (6,200,000)
17 EBL NRB Mutual Fund 10 22,376,041 149,665,000 6.69 4.10 91,741,768 -
18 First Bangladesh Fixed Income Fund 10 38,807,348 250,000,000 6.44 3.70 143,587,188 -
19 EXIM Bank 1st Mutual Fund 10 33,779,648 235,793,533 6.98 4.10 138,496,557 -
B. Provision requirement for Mutual Fund as per BB Circular 107,211,119 735,458,533 435,492,265 (6,200,000)
No. of Shares
Sl. Face Cost of Per Unit Per share Total book Unrealized prof-
Name of the company including
No. value holding cost (NAV) value it (loss)
bonus
Unquoted Shares
1 Industrial & Infrastructure Development Finance Co. Ltd. 10 11,726,576 59,000,260 5.03 17.19 201,629,080 142,628,820
2 Central Depository Bangladesh Limited 10 1,142,361 3,138,890 2.75 34.73 39,676,988 36,538,098
3 Era-InfoTech Limited 100 195,687 383,700 1.96 265.37 51,930,305 51,546,605
4 Bangladesh Rating Agency Limited 100 32,015 3,201,512 100.00 21.94 702,472 (2,499,040)
5 MSF Asset Management Co. Ltd. 10 200,000 2,000,000 10.00 10.00 2,000,000 -
6 Universal Financial Solutions Limited (UFS) 10 10,000,000 100,000,000 10.00 9.84 98,400,000 (1,600,000)
7 Investment in SWIFT share 307,890 29 9,035,228 311,559.59 307,889.86 9,035,228 -
8 Energypac Power Generation Limited 10 1,192,800 49,984,000 41.90 41.15 49,080,763 (903,237)
C. Unrealized profit of unquoted stocks 24,485,631 226,743,590 453,448,459 225,711,245
9 Provision required for subsidiaries (197,672,777)
D. Provision for unqouted stock 28,038,468
E. Provision required for Beximco Debentures (15,982,975)
F. Total Provision Requirement (A+B+D+E) (169,694,780)
G. Provision maintained 183,383,553
H. Provision Excess / (Shortfall) for quoted and unquoted share 13,688,773
Bank Asia Limited

343
344
Bank Asia Limited Annex C-1
Conventional Banking, Islamic Banking and Off-shore Banking unit
Schedule of fixed assets including premises, furniture and fixtures
Cost Depreciation
Charged
Rate Disposal/ Written
Revalua- Disposal/ from
Addition Balance of Balance Charged adjust- Balance down value
Particulars Balance tion adjustment Revaluation
during as at dep. as at during ment as at as at
as at during during reserve
the year 31 Dec 2019 % 01 Jan 2019 the year during 31 Dec 2019 31 Dec 2019
01 Jan 2019 the year the year during the
the year
year
Own assets
Land 2,646,764,306 - - - 2,646,764,306 - - - - - - 2,646,764,306
Building 2,752,485,492 - - - 2,752,485,492 5 1,098,677,739 95,383,783 53,715,264 - 1,247,776,786 1,504,708,706
Furniture and fixtures 1,188,646,531 37,502,593 - (800,000) 1,225,349,124 20 948,230,191 90,058,019 - (381,250) 1,037,906,960 187,442,164
Machinery & Equipments 927,523,396 228,901,452 - (1,760,000) 1,154,664,848 20 627,141,174 116,511,998 - (1,760,000) 741,893,172 412,771,676
Computer and accessories 440,900,264 33,889,902 - - 474,790,166 20 312,923,474 52,002,096 - - 364,925,570 109,864,596
Motor vehicles 243,279,818 3,334,055 - (42,828,577) 203,785,296 20 160,152,702 26,759,142 - (42,828,577) 144,083,267 59,702,029
Sub-total 8,199,599,807 303,628,002 - (45,388,577) 8,457,839,232 3,147,125,280 380,715,038 53,715,264 (44,969,827) 3,536,585,755 4,921,253,477
Leased assets
Furniture and fixtures 167,162,848 - - - 167,162,848 20 167,162,848 - - - 167,162,848 -
Machinery & Equipments 106,201,139 - - - 106,201,139 20 106,201,139 - - - 106,201,139 -
Computer and accessories 72,204,100 - - - 72,204,100 20 72,204,100 - - - 72,204,100 -
Motor vehicles 18,900,000 - - - 18,900,000 20 18,900,000 - - - 18,900,000 -
Sub-total 364,468,087 - - - 364,468,087 364,468,087 - - - 364,468,087 -
Total 8,564,067,894 303,628,002 - (45,388,577) 8,822,307,319 3,511,593,367 380,715,038 53,715,264 (44,969,827) 3,901,053,842 4,921,253,477
Intangible assets
Corporate Membership 1 - 24,000,000 - - 24,000,000 - - - - - 24,000,000
Work in progress -building

Kawran bazar building 2 332,037,775 240,408,069 - - 572,445,844 - - - - - 572,445,844
Sukrabad building 3 47,041,290 35,427,974 - - 82,469,264 - - - - - 82,469,264
Renovation 4 - 13,020,200 13,020,200 - - - - - 13,020,200
379,079,065 288,856,243 - - 667,935,308 - - - - - 667,935,308
Right-of-use assets
Office space 5 - 1,739,075,475 - - 1,739,075,475 - 326,661,553 - - 326,661,553 1,412,413,922
Grand Total 8,943,146,959 2,355,559,720 - (45,388,577) 11,253,318,102 - 707,376,591 53,715,264 (44,969,827) 4,227,715,395 7,025,602,707
1
Membership fees to BCCL
2
For construction of 12 storied commercial building with 22 stored foundation
3
For construction of 9 storied building
4
Gulshan Branch and Fatullah Branch
5
Right-of-use assets arises for implementing of the “IFRS 16: Lease”. This amount comprises lease liabilities (ref: Note 13.9) and intial payment for executing the contract.
Annex C-2
Bank Asia Limited
Conventional Banking, Islamic Banking and Off-shore Banking unit
Schedule of fixed assets including premises, furniture and fixtures
Cost Depreciation
Charged
Rate Written
Disposal/ from Disposal/
Addition Balance of Balance Charged Balance down value
Particulars Balance adjustment Revaluation adjustment
during as at dep. as at during as at as at
as at during reserve during
the year 31 Dec 2018 % 01 Jan 2018 the year 31 Dec 2018 31 Dec 2018
01 Jan 2018 the year during the the year
year
Own assets
Land 2,646,764,306 - - 2,646,764,306 - - - - - - 2,646,764,306
Building 2,752,485,491 - - 2,752,485,491 5 949,578,696 95,383,779 53,715,264 - 1,098,677,739 1,653,807,752
Furniture and fixtures 1,097,315,470 94,334,061 (3,003,000) 1,188,646,531 20 851,731,495 97,705,634 - (1,206,938) 948,230,191 240,416,340
Machinery & Equipments 785,151,504 142,930,554 (558,663) 927,523,396 20 538,192,038 89,445,301 - (496,165) 627,141,174 300,382,222
Computer and accessories 404,958,567 35,941,696 - 440,900,263 20 264,389,416 48,534,058 - - 312,923,474 127,976,789
Motor vehicles 194,732,600 61,299,575 (12,752,357) 243,279,818 20 150,326,595 21,622,638 - (11,796,530) 160,152,703 83,127,116
Sub-total 7,881,407,939 334,505,886 (16,314,019) 8,199,599,806 2,754,218,240 352,691,410 53,715,264 (13,499,634) 3,147,125,280 5,052,474,527
Leased assets
Furniture and fixtures 167,162,848 - - 167,162,848 20 167,162,848 - - - 167,162,848 -
Machinery & Equipments 106,201,139 - - 106,201,139 20 106,201,139 - - - 106,201,139 -
Computer and accessories 72,204,100 - - 72,204,100 20 72,204,100 - - - 72,204,100 -
Motor vehicles 18,900,000 - - 18,900,000 20 18,900,000 - - - 18,900,000 -
Sub-total 364,468,087 - - 364,468,087 364,468,087 - - - 364,468,087 -
Total 8,245,876,026 334,505,886 (16,314,019) 8,564,067,893 3,118,686,327 352,691,410 53,715,264 (13,499,634) 3,511,593,367 5,052,474,527

Kawran bazar building 1 163,317,128 168,720,647 - 332,037,775 - - - - - 332,037,775
Sukrabad building 2 39,233,671 7,807,619 - 47,041,290 - - - - - 47,041,290
Total 202,550,799 176,528,266 - 379,079,065 - - - - - 379,079,065
Grand Total 8,448,426,824 511,034,152 (16,314,019) 8,943,146,959 3,118,686,327 352,691,410 53,715,264 (13,499,634) 3,511,593,367 5,431,553,592
1
2
Bank Asia Limited

345
346
Annex C-3
Bank Asia Limited and its Subsidiaries
Consolidated Schedule of fixed assets including premises, furniture and fixtures
Cost Depreciation
Rate Charged from Written
Disposal/ Disposal/
Addition Balance of Balance Charged Revaluation Balance down value
Particulars Balance adjustment adjustment
during as at dep. as at during reserve as at as at
as at during during
the year 31 Dec 2019 % 01 Jan 2019 the year during the 31 Dec 2019 31 Dec 2019
01 Jan 2019 the year the year
year
Own assets
Land 2,646,764,306 - - 2,646,764,306 0 - - - - - 2,646,764,306
Building 2,773,626,243 737,880 127,713 2,774,491,836 5 1,114,966,115 97,335,178 53,715,264 645,698 1,266,662,255 1,507,829,582
Furniture and fixtures 1,206,448,427 61,578,715 (11,191,101) 1,256,836,041 20 961,950,088 92,732,221 - (10,771,204) 1,043,911,105 212,924,937
Machinery & Equipments 935,599,805 235,594,987 (6,470,579) 1,164,724,213 20 633,174,330 117,723,860 - (6,406,685) 744,491,505 420,232,708
Computer and accessories 453,288,375 35,792,902 (4,243,011) 484,838,266 20 321,974,971 53,006,595 - (4,233,740) 370,747,826 114,090,440
Motor vehicles 243,279,818 3,334,055 (42,828,577) 203,785,296 20 160,152,703 26,759,142 - (42,828,577) 144,083,268 59,702,029
Sub-total 8,259,006,975 337,038,539 (64,605,555) 8,531,439,959 3,192,218,206 387,556,996 53,715,264 (63,594,508) 3,569,895,958 4,961,544,001
Leased assets
Machinery & Equipments 106,201,139 - - 106,201,139 20 106,201,139 - - - 106,201,139 -
Motor vehicles 18,900,000 - - 18,900,000 20 18,900,000 - - - 18,900,000 -
Sub-total 364,468,087 - - 364,468,087 364,468,087 - - - 364,468,087 -
Total 8,623,475,062 337,038,539 (64,605,555) 8,895,908,046 3,556,686,293 387,556,996 53,715,264 (63,594,508) 3,934,364,045 4,961,544,001
Intangible assets
Corporate Membership 1 - 24,000,000 - 24,000,000 - - - - - 24,000,000

Kawran bazar building 2 332,037,775 240,408,069 - 572,445,844 - - - - - 572,445,844
Renovation 4 - 13,020,200 13,020,200 - - - - - 13,020,200
379,079,065 288,856,243 - 667,935,308 - - - - - 667,935,308
Right-of-use assets
Office space 5 - 1,739,075,475 - 1,739,075,475 - 326,661,553 - - 326,661,553 1,412,413,922
Grand Total 9,002,554,127 2,388,970,257 (64,605,555) 11,326,918,829 3,556,686,293 714,218,549 53,715,264 (63,594,508) 4,261,025,598 7,065,893,231
1
Membership fees to BCCL
2
3
4
Gulshan Branch and Fatullah Branch
5
Right-of-use assets arises for implementing of the “IFRS 16: Lease”. This amount comprises lease liabilities (ref: Note 13.9) and intial payment for executing the contract.
Bank Asia Limited and its Subsidiaries Annex C-4
Consolidated Schedule of fixed assets including premises,
furniture and fixtures
Cost Depreciation
Charged
Written
Disposal/ Rate from Disposal/
Balance Additions Balance Balance Charged Balance down value
Particulars adjustment of Revaluation adjustment
as at during as at as at during as at as at
during dep. reserve during
01 Jan 2018 the year 31 Dec 2018 01 Jan 2018 the year 31 Dec 2018 31 Dec 2018
the year % during the year
the year
Own assets
Land 2,646,764,306 - - 2,646,764,306 0 - - - - - 2,646,764,306
Building 2,774,297,051 - (670,808) 2,773,626,243 5 962,722,912 98,227,902 53,715,264 300,037 1,114,966,115 1,658,660,129
Furniture and fixtures 1,112,510,964 97,039,134 (3,101,671) 1,206,448,427 20 865,125,158 98,145,466 - (1,320,536) 961,950,088 244,498,339
Equipments 791,520,005 144,638,462 (558,663) 935,599,805 20 543,828,967 89,841,528 - (496,165) 633,174,330 302,425,475
Computer and accessories 416,390,539 36,897,836 - 453,288,375 20 272,531,726 49,443,245 - - 321,974,971 131,313,404
Motor vehicles 194,732,600 61,299,575 (12,752,357) 243,279,818 20 150,326,595 21,622,638 - (11,796,530) 160,152,703 83,127,116
Sub-total 7,936,215,466 339,875,007 (17,083,498) 8,259,006,975 2,794,535,358 357,280,779 53,715,264 (13,313,195) 3,192,218,206 5,066,788,769
Leased assets
Equipments 106,201,139 - - 106,201,139 20 106,201,139 - - - 106,201,139 -
Motor vehicles 18,900,000 - - 18,900,000 20 18,900,000 - - - 18,900,000 -
Sub-total 364,468,087 - - 364,468,087 364,468,087 - - - 364,468,087 -
Total 8,300,683,553 339,875,007 (17,083,498) 8,623,475,062 3,159,003,445 357,280,779 53,715,264 (13,313,195) 3,556,686,293 5,066,788,769
Work in progress - building
Kawran bazar building1 163,317,128 168,720,647 - 332,037,775 - - - - - 332,037,775

Total 202,550,799 176,528,266 - 379,079,065 - - - - - 379,079,065
Grand Total 8,503,234,352 516,403,273 (17,083,498) 9,002,554,127 3,159,003,445 357,280,779 53,715,264 (13,313,195) 3,556,686,293 5,445,867,834
1
2
Bank Asia Limited

347
Bank Asia Limited Annex D
Statement of tax position

Accounting Assessment
Status
year year
2000 2001-2002 Assessment finalized
2010 2011-2012 At Honorable High Court stage
2011 2012-2013 At Honorable High Court stage
2018 2019-2020 Return submitted
348
Bank Asia Limited Annex E
Details of Large Loan

2019 2018
Number of clients 8 9
Amount of outstanding advances (Taka) 43,683 50,121
Amount of classified advances (Taka) NIL NIL
Measures taken for recovery (Taka) NIL NIL
Client-wise break up is as follows

Amount in million
Outstanding (Taka) 2019 Outstanding (Taka) 2018
Sl.
Name of clients Non Non
No. Funded Total Funded Total
Funded Funded
1 Spectra Group 1,489 4,247 5,736 - - -
2 Saiham Group 1,951 3,032 4,983 - - -
3 Meghna Group 2,014 2,793 4,807 - - -
4 ACI Group 2,606 2,168 4,773 - - -
5 Basundhara Group 4,508 2,221 6,729 3,329 2,579 5,907
6 City Group 1,862 4,182 6,044 1,270 3,339 4,610
7 Summit Group 2,049 3,413 5,461 568 11,870 12,438
8 Western Marine Group 4,204 945 5,149 2,288 2,002 4,290
9 Pran RFL Group - - - 1,843 2,795 4,638
10 AA Group - - - 2,367 1,639 4,006
11 Max Group - - - 3,337 556 3,893
12 ECHOTEX Group - - - 1,690 3,147 4,837
13 Salma Group - - - 2,072 3,430 5,502
Total 20,683 23,000 43,683 18,765 31,356 50,121

Bank Asia Limited
Annex F
Bank Asia Limited
Names of Directors and their interest in different entities
Names of firms/companies in which interest-

Sl.
Name Status with the Bank ed as proprietor/director/managing agent/
no.
guarantor/employee/partner, etc.
Rangs Limited
Rangs Workshop Limited
Rangs Industries Ltd.
Rangs Properties Limited
Rangs Motors Limited
Rangs Pharmaceuticals Limited
Ranks ITT Limited
Ranks Telecom Limited
Ranks Petroleum Limited
Ranks Interiors Limited
Rancon Motors Limited
Rancon Engineering Limited
Rancon Services Limited
Shield Security Services Limited
Rancon Autos Limited
Rancon Automobiles Limited
Rancon Motor Bikes Limited
Ranks Steels Limited
1. Mr. A Rouf Chowdhury Chairman
Ranks Real Estate Limited
Rangs Motors Workshop Limited
Ranks Agro Bioteq Limited
Zest Polymers Ltd.
Metro Foils Limited
Rancon Holdings Limited
Sea Resources Limited
Sea Fishers Limited
Deep Sea Fishers Limited
Sea Resources Agencies Limited
Fishers Shipyard Limited
Sea Resources Cold Storage Limited
Seamans Dockyard & Fish Meal Ltd.
The Daily Star
Agro Food Services Ltd.
Ranks FC Properties Limited
Softex Communication Limited
Bank Asia Limited
350
Sl.
no.
M. Ahmed Tea & Lands Co.
Phulbari Tea Estates Ltd.
M. Ahmed Cold Storage Ltd.
Mr. Mohd. Safwan M. Ahmed Food & Spices Ltd.
Choudhury M. Ahmed Real Estates Ltd.
2. Vice Chairman
(Representing Phulbari Premier Dyeing & Calendaring Ltd.
Tea Estates Ltd.) Anandaniketan Ltd.
JVS Ltd.
FIVDB
Bank Asia Limited
Rangs Limited
Ranks ITT Limited
Mr. Romo Rouf Rancon Automobiles Limited
3 Vice Chairman
Chowdhury Ranks Steel Limited
Ranks Real Estate Limited
Rangs Motors Workshop Limited
Ranks Agro Bioteq Limited
Zest Polymers Ltd.
Metro Foils Limited
Sea Fishers Limited
Seamans Dockyard & Fish Meal Ltd.
Sash Limited
Bank Asia Limited

Bank Asia Limited
Sl.
no.
Romask Limited
Ranks Petroleum Ltd.
4. Mr. Rumee A Hossain Director Ranks ITT Limited
Bank Asia Limited
Rangs Limited
Ranks ITT Limited
Rancon Automobiles Limited
Ranks Steels Limited
Ms. Romana Rouf Ranks Real Estate Limited
Chowdhury Rangs Motors Workshop Limited
5. Director
(Representing Ranks Agro Bioteq Limited
Maya Limited) Zest Polymers Ltd.
Metro Foils Limited
Sea Fishers Limited
Sea Natural Food Ltd.
Sea Natural Ltd.
Seamans Dockyard & Fish Meal Limited
Romask Limited
SRL Marine Product Ltd.
Amreen Romana Ltd.
Amiran Romana Ltd.
Maya Limited
Bank Asia Limited
352
Sl.
no.
Pritha Fashions Ltd.
Sinha Auto Spinning Mills Ltd.
6. Ms. Hosneara Sinha Director
Sattar Jute Mills Ltd.
Bank Asia Limited
DHS Motors Limited
Platform Solutions Limited
FAR Limited
7. Ms. Farhana Haq Director
Ali Estates Limited
Surja Soft Ltd.
Bank Asia Limited
Lafargeholcim Bangladesh Ltd.
Enterprise Cluster Pte. Ltd. (Singapore)
8. Ms. Naheed Akhter Sinha Director
Cluster World Pte. Ltd. (Singapore)
Bank Asia Limited
Mr. M Shahjahan Bhuiyan
9. Director Bank Asia Limited
(Independent Director)
Mr. Dilwar H Choudhury
10. Director Bank Asia Limited
Major General Mohammad Sinha-Medlar Group
Matiur Rahman (retd.)
11. Director
(Representing
Bank Asia Limited
Sinha Fashions Ltd.)
Star Infrastructure Development
Mr. Ashraful Haq Consortium Limited
12. Chowdhury Director
(Independent Director) Star Allied Venture Limited
Bank Asia Limited

Mr. Enam Chowdhury Agro Food Services Ltd.
13. (Representing Amiran Director
Generations Limited) Bank Asia Limited
Anwar Galvanizing Limited

Mr. Md. Abul Quasem National Credit Rating Limited
14. Director
Bank Asia Limited
University of Asia Pacific

Mr. M. A. Baqui Khalily
15. Director
Bank Asia Limited

Bank Asia Limited
Annex G
Bank Asia Limited
Islamic Banking Operations
The operation of our Islamic Banking is totally different from the Bank’s conventional operation as the former operates their business on
the basis of Islamic Shariah. Accounting system is vital for ensuring Shariah compliance in such banking operation. Our Islamic Banking
operation is committed to follow the accounting principles that refrain from interest. In a nutshell, we follow under noted principles for
accounting under its Islamic Banking umbrella, run through a separate Islamic Banking software namely i-HIKMAH.
1. Deposit Collection and income Sharing Ratio (ISR) based Profit Distribution
For procuring funds from depositors, our Islamic Banking follows Al-Wadiah and Mudaraba principles. In case of Al-Wadiah Account,
no profit is allowed at present. But for Mudaraba depositors, Bank Asia as the first Bank in Bangladesh, follows Income Sharing tech-
nique. It is different from traditional Weightage System so far practiced by almost all Islamic Banking operators in the country.
Income sharing module of Bank Asia has been appreciated by different quarters/institutions/organizations, particularly by the Cen-
tral Shariah Board for Islamic Banks of Bangladesh and Islamic Banks Consultative Forum. Our module offers pre-defined Income
Sharing Ratio (ISR) for each type of depositor and the Bank. The ISR determines the portion of income for each type of depositor and
the Bank. For example, the ISR of 75 : 25 would mean that 75% of distributable income is to be shared by the concerned depositors
and the rest 25% to be shared by the Bank. The ISR between each type of Mudaraba depositors and the Bank (Mudarib) are duly dis-
closed at the time of Account opening and/or beginning of the concerned period. Profit rate is emerged at actual, as derived from the
income fetched from deployment of the concerned fund. As such our rate of profit on deposit under Islamic Banking is nothing but a
post facto expression of the respective agreed sharing ratios. Our profit rate is an output based on the Bank’s earning on investment.
The ISR declared on Mudaraba deposits for the year 2019
Distributable Investment
Income Sharing Ratio
Types of Mudaraba Deposit (ISR) w.e.f. 01.06.2019
Client Bank
1. Mudaraba Term Deposit Account (MTDA) 1 month 60% 40%
2. Mudaraba Term Deposit Account (MTDA) 2 months 60% 40%
3. Mudaraba Term Deposit Account (MTDA) 3 months 70% 30%
4. Mudaraba Term Deposit Account (MTDA) 6 months (Below Tk.1 crore) 72% 28%
5. Mudaraba Term Deposit Account (MTDA) 6 months (Tk.1 crore & above but below Tk.5 crore) 80% 20%
6. Mudaraba Term Deposit Account (MTDA) 6 months (Tk.5 crore & above) 85% 15%
15. Corporate Term Deposit Account (CTDA) 3 months (Tk.1 crore & above) 75% 25%
16. Corporate Term Deposit Account (CTDA) 6 months (Tk.1 crore & above but below Tk.5 crore) 80% 20%
19. Mudaraba Savings Account (MSA) 45% 55%
20. Mudaraba Corporate Privilege Savings Account (MCPSA) 45% 55%
21. Smart Junior Saver (School Banking) Account 60% 40%
354
Annex G
22. Mudaraba Special Notice Deposit Account (MSND) 35% 65%

23. Mudaraba Monthly Profit Paying Deposit (MMPPD)- 1 year 80% 20%
24. Mudaraba Monthly Profit Paying Deposit (MMPPD)- 2 years 82% 18%
25. Mudaraba Monthly Profit Paying Deposit (MMPPD)- 3-5 years 85% 15%
26. Mudaraba Deposit Pension Scheme (MDPS) 3-12 Years 85% 15%
27. Mudaraba Hajj Savings Scheme (MHSS) 1- 10 Years 88% 12%
28. Cash Waqf 88% 12%
2. Investment Operation and Return Thereon

Investments of our Islamic Banking are broadly categorized in the following two types in respect of charging (rate of) return:

a. Fixed return based investment
b. Variable return based investment

Fixed return base investment system is applicable for our Bai-Murabaha Muajjal Investment mode. Under this mode, Bank sells
the goods to a client at a fixed profit /mark-up on deferred payment including post import basis. Hire Purchase Shirkatul Melk
(HPSM) is also a fixed return based investment mode. In this case rate of rent is fixed but amount of rent becomes variable on
the basis of diminishing balance method.

Variable return based income is applied for our Musaharaka mode of investment. In these cases, only ratio of Income Sharing is
stated in the agreement. Bank bags income on the basis of the concerned venture according to the agreed ratio (comparable to
our Mudaraba deposit products). Genuine loss, if any, is borne according to capital ratio of the client & the Bank.
3. Income/ Revenue Recognition Principle

The bank earns income from various sources such as charges, fees, commission and investment income. To recognize all sorts
of income, Bank follows Shariah principle strictly. Usually charges, fees & commission etc. are recognized on actual basis.
Recognition of income from investment follows principles as under:
For Bai-Murabaha Muajjal Investment

While creating each deal, in case of Bai-Murabaha Muajjal mode of investment, markup/profit is added to the bank’s purchase
cost with a credit to unearned income A/c. Thereafter time apportionment of profit is recognized out of the unearned income
amount at the end of each month on accrual basis. Allowance (rebate) for early repayment, if any, may however be applied at
Bank’s discretion.
For Hire Purchase Shirkatul Melk (HPSM) Investment

In case of HPSM mode of investment rent is charged and taken into income account at the end of each month on accrual basis.

If the account has a provision of gestation period, generally no income is earned during the period. In this case income starts
just after the end of gestation period. However rent is chargeable in spite of gestation, if the delivery of asset is completed in
usable condition such as a machine or a set of machinery or building etc.
All accrual income is subject to prevailing classification and provisioning rules of Bangladesh Bank.
For Musharaka Investment

In recognizing the revenue from Musharaka Investment we follow the actual (cash/ realization) basis instead of accrual i.e. no
income is recognized until the result of the venture is arrived at.
4. Cost Recognition Principle

Cost in respect of profit paid on deposit is recognized on accrual basis. Monthly accruals in this respect are calculated on
the basis of Income Sharing Ratio. Other costs are also recognized on the accrual basis following the matching concept of
Accounting.
To ensure/ supervise Shariah compliance in banking operation, Bank Asia has a knowledgeable Shariah Supervisory Committee
comprising renowned Fuqaha, Islamic bankers and academicians conversant in Islamic Economics & Finance.

Bank Asia Limited
Annex G-1
Bank Asia Limited
Islamic Banking Unit Balance Sheet
Amount in Taka
31 Dec 2019 31 Dec 2018
PROPERTY AND ASSETS
Cash 1,010,655,911 786,581,748
Cash in hand (including foreign currencies) 39,319,564 31,058,244
Balance with Bangladesh Bank and its agent bank 971,336,347 755,523,504
(Including foreign currencies)
Balance with other banks and financial institutions 300,753,880 852,738,197

In Bangladesh 300,753,880 852,738,197
- -
Placement with other banks and financial institutions - -
Investments in shares and securities 1,049,300,000 874,700,000
Government 969,300,000 754,700,000
Others 80,000,000 120,000,000
Investments 13,304,712,470 11,719,264,673

General Investment 13,253,555,559 11,713,961,145
Bills purchased and discounted 51,156,911 5,303,528
Fixed assets including premises, furniture and fixtures 4,884,814 6,791,260

Other assets 4,139,401,670 1,794,638,896
Total assets 19,809,708,745 16,034,714,774
Liabilities
Placement from other banks, financial institutions and agents - -
Deposits and other Accounts
Al-wadeeah current and other deposits accounts, etc. 815,561,996 995,086,895
Bills payable 108,992,752 86,397,037
Mudaraba savings deposits 2,551,157,860 1,691,519,432
Mudaraba term deposits 15,090,188,481 12,231,860,076
18,565,901,089 15,004,863,440
Other liabilities 1,243,807,656 1,029,851,334
OFF- BALANCE SHEET ITEMS
Contingent liabilities
Acceptances and endorsements - -
Letters of guarantee 214,311,365 146,540,716
Irrevocable letters of credit - -
Bills for collection - -
Other commitments - -
Total Off-Balance Sheet items including contingent liabilities 214,311,365 146,540,716
356
Annex G-2
Bank Asia Limited
Islamic Banking Unit Profit and Loss Statement
Amount in Taka
31 Dec 2019 31 Dec 2018
Investment income 1,348,621,170 1,165,033,072
Profit paid on deposits, borrowings, etc. 1,003,503,946 848,694,828
Net investment income 345,117,224 316,338,244
Profit on Investment with bank and financial institutions 31,211,410 20,850,530
Commission, exchange and brokerage 59,755,482 62,646,875
Other operating income 9,390,895 7,452,917
Total operating income 445,475,011 407,288,566
Salaries and allowances 84,059,716 75,221,809
Rent, taxes, insurance, electricity, etc. 9,826,725 8,063,405
Legal expenses 92,500 281,520
Postage, stamp, telecommunication, etc. 862,710 562,602
Stationery, printing, advertisement, etc. 1,532,772 1,048,993
Depreciation and repair of Bank's assets 4,733,774 4,697,271
Other expenses 42,724,634 27,147,174
Total operating expenses 143,832,831 117,022,774
Profit before provision 301,642,180 290,265,792
Provision for investments
General provision 1,809,521 (7,266,443)
Specific provision 163,150,386 (1,228,906)
164,959,907 (8,495,349)
Provision for off balance sheet items 677,707 372,705
Total provision 165,637,614 (8,122,644)
Total profit before taxes 136,004,566 298,388,436

Bank Asia Limited
Annex H
Bank Asia Limited
Off-shore Banking Unit Balance Sheet
31 Dec 2019 31 Dec 2018

Notes
USD Taka USD Taka
PROPERTY AND ASSETS
Cash
In hand (including foreign currencies) - - - -
Balance with Bangladesh Bank and its agent
- - - -
bank (including foreign currencies)
Balance with other banks and financial

3
institutions
In Bangladesh - - - -
Outside Bangladesh 5,458,920 457,730,481 5,629,758 465,862,484
5,458,920 457,730,481 5,629,758 465,862,484
Investments
Government - - - -
Others 1,628,319 136,534,543 1,108,910 91,762,334
1,628,319 136,534,543 1,108,910 91,762,334
Loans and advances 4
Loans, cash credits, overdrafts, etc. 31,992,364 2,682,559,733 36,840,673 3,048,565,725
Bills purchased and discounted 201,423,944 16,889,397,743 215,142,451 17,803,037,847
233,416,309 19,571,957,476 251,983,125 20,851,603,572
Fixed assets including premises, furniture
- - - -
and fixtures
Other assets 5 585,497 49,093,897 367,970 30,449,503
Non - banking assets - - - -
Total assets 241,089,045 20,215,316,397 259,089,763 21,439,677,893

Liabilities
Borrowings from other banks, financial
6 233,940,009 19,615,869,735 253,540,414 20,980,469,299
institutions and agents
Deposits and other accounts 7
Current deposits 5,348,141 448,441,616 4,749,651 393,033,599
Bills payable - - - -
Savings bank deposits - - - -
Fixed deposits 1,752,245 146,925,728 799,698 66,174,995
Bearer certificate of deposit - - - -
7,100,386 595,367,344 5,549,349 459,208,594
Other liabilities 8 48,650 4,079,318 - -
Total liabilities 241,089,045 20,215,316,397 259,089,763 21,439,677,893
OFF- BALANCE SHEET ITEMS
Contingent liabilities
Acceptances and endorsements 9 24,518 2,055,858 160,443 13,276,658
Letters of guarantee - - - -
Irrevocable letters of credit 10 349,151 29,276,311 330,409 27,341,345
Bills for collection - - - -
Other contingent liabilities - - - -
373,669 31,332,169 490,852 40,618,003
Other commitments - - - -
Total Off-Balance Sheet items including
373,669 31,332,169 490,852 40,618,003
contingent liabilities
358
Annex H-1
Bank Asia Limited
Off-shore Banking Unit Profit and Loss Statement
31 Dec 2019 31 Dec 2018

Notes
USD Taka USD Taka
Interest income 11 13,995,478 1,166,103,247 13,110,549 1,081,620,297

Interest paid on deposits and borrowings, etc. 12 10,389,691 865,669,016 9,798,539 808,379,496
Net interest/net profit on investments 3,605,788 300,434,231 3,312,010 273,240,801
Investment Income - - - -
Commission, exchange and brokerage 13 92,454 13,701,570 70,052 10,713,397
Other operating income 14 339,762 28,308,974 316,114 26,079,410
Total operating income (A) 4,038,004 342,444,775 3,698,176 310,033,608
- -
Salaries and allowances - - - -
Rent, taxes, insurance, electricity, etc. 3,091 257,549 3,154 260,214
Legal expenses 5,042 420,113 - -
Postage, stamp, telecommunication, etc. 8,646 720,396 9,452 779,823
Stationery, printing, advertisements, etc. 607 50,561 712 58,712
Auditors' fees - - - -
Depreciation and repair of Bank's assets - - - -
Other expenses 224,228 18,682,659 160,519 13,242,801
Total operating expenses (B) 241,614 20,131,278 173,837 14,341,550
Profit before provision (C=A-B) 3,796,390 322,313,497 3,524,339 295,692,058
Provision for loans and advances
General provision (151,586) (12,630,144) 688,440 56,796,306

Specific provision - - 40,319 3,326,356
(151,586) (12,630,144) 728,760 60,122,662
Provision for off-balance sheet items (1,114) (92,858) (2,186) (180,375)
Total provision (D) (152,700) (12,723,002) 726,573 59,942,287
Total profit/(loss) (C-D) 3,949,090 335,036,499 2,797,766 235,749,771


Bank Asia Limited
Off-shore Banking Unit (OBU) Annex H-2
Notes to the Financial Statements

1 Status of the unit

Off-shore banking Unit (“the Unit”) is a separate business unit of Bank Asia Limited, governed under the Rules and Guidelines of
Bangladesh Bank. The Bank obtained the Off-shore banking unit permission vide letter no.BRPD(P-3)744(94)/2007-1853 dated
21 June 2007. The Bank commenced the operation of its Off-shore Banking Unit from 28 January 2008 and its office is located at
Zone Service Complex, Chittagong Export Processing Zone, Chittagong.

2 Significant accounting policies and basis of preparations
2.1 Basis of preparation
The financial statements are prepared on the basis of a going concern and represent the financial performance and financial
position of the Off-shore Banking Unit (OBU). The financial statements of the OBU are prepared in accordance with the Bank
Companies Act 1991, in particular, Banking Regulation and Policy Department (BRPD) Circular No. 14 dated 25 June 2003, ,Ban-
gladesh Bank BCD Circular No. (P) 744(27), dated 17 December, 1985, other Bangladesh Bank Circulars, Bangladesh Financial
Reporting Standards (BFRSs) and other rules and regulations where necessary.
2.2 Foreign currency

Items included in the financial statements of the Unit are measured using the currency of the primary economic environment in
which the entity operates (“the functional currency”). The financial statements of the Unit are presented in US Dollar (USD) and
Taka where USD is the functional currency and Taka are the Unit’s presentation currency.
2.3 Loans and advances

a) Loans and advances are stated in the balance sheet on gross basis.

b) Interest is calculated on daily product basis, but charged and accounted for quarterly on accrual basis. Interest on classified
loans and advances/investments is kept in interest suspense account as per BRPD circulars no. 16 of 1998, 9 of 2001 and 10 of
2005 and recognised as income on realisation. Interest is not charged on bad and loss loans and advances/investments as per
guidelines of Bangladesh Bank. Records of such interest amounts are kept in separate memorandum accounts.
c) As per BRPD circular no. 16 dated 18 November 2014, BRPD Circular 14 dated 23 September 2012, BRPD Circular no. 19 dated
27 December 2012 and BRPD Circular no. 05 dated 29 May 2013, provision for sub-standard loans, doubtful loans and bad loss
loans has to be provided at 20%, 50% and 100% respectively for loans and advances depending on the duration of overdue.
Provision for unclassified loan was made at the specified rate i.e. 0.25% to 5%

2.4 General
Assets and liabilities have been translated into Taka currency @USD 1 = BDT 83.85 (2018 : BDT 82.75). Income and expenses are
translated at an average rate @ USD 1 = BDT 83.32 (2018 : BDT 80.50). Assets and liabilities and Income and expenses of
Conventional Banking have been translated into Taka currency @ USD 1 = BDT 84.90

31 Dec 2019 31 Dec 2018
USD Taka USD Taka
3 Balance with other banks and financial institutions
In Bangladesh - - - -
Outside Bangladesh
Commerzbank A.G, Frankfurt 1,445 121,161 48,711 4,030,817
Habib American Bank, New York 5,457,470 457,608,880 5,581,042 461,831,233
Sonali Bank (UK) Limited, London 5 440 5 434
5,458,920 457,730,481 5,629,758 465,862,484
4 Loans and advances
Loans, cash credit, overdrafts etc. (Note 4.1) 31,992,364 2,682,559,733 36,840,673 3,048,565,725
Bills purchased and discounted (Note 4.2) 201,423,944 16,889,397,743 215,142,451 17,803,037,847
233,416,309 19,571,957,476 251,983,125 20,851,603,572
360
Off-shore Banking Unit (OBU)
31 Dec 2019 31 Dec 2018

USD Taka USD Taka
4.1 Loans, cash credit, overdrafts etc.
Term loan industrial 30,754,031 2,578,725,495 35,848,609 2,966,472,380
Term loan others - - 61,949 5,126,281
Loan against trust receipts 113,016 9,476,426 - -
Demand loan 407,736 34,188,702 - -
Loan others 717,580 60,169,110 930,116 76,967,064
31,992,364 2,682,559,733 36,840,673 3,048,565,725
Payable in Bangladesh 201,423,944 16,889,397,743 215,142,451 17,803,037,847
Payable outside Bangladesh - - - -
201,423,944 16,889,397,743 215,142,451 17,803,037,847
5 Other assets
Branch adjustment account 169,698 14,229,167 169,698 14,042,495
Prepaid expenses 415,799 34,864,730 198,272 16,407,008
585,497 49,093,897 367,970 30,449,503
6 Borrowings from other banks, financial institutions and agents
Borrwoing from other banks (Note 6.1) 136,200,875 11,420,443,402 197,604,273 16,351,753,582
Borrowing from corporate office, Dhaka 13,420,009 1,125,267,792 11,000,000 910,250,000
Borrowing - ECA 4,319,124 362,158,541 4,936,142 408,465,717
Borrowing from IFC 80,000,000 6,708,000,000 40,000,000 3,310,000,000
233,940,009 19,615,869,735 253,540,414 20,980,469,299
6.1 Borrwoing from other banks
Standard Chartered Bank, Singapore 32,535,000 2,728,059,750 40,621,625 3,361,439,468
First Gulf Bank 5,000,000 419,250,000 20,000,000 1,655,000,000
National Bank of Ras Al Khaimah 22,000,000 1,844,700,000 23,000,000 1,903,250,000
Emirates Islami Bank - - 14,000,000 1,158,500,000
United Bank Limited, UAE 10,000,000 838,500,000 12,000,000 993,000,000
Caixa Bank, Barcelona - - 15,364,250 1,271,391,688
Bank Of Tokyo-Mitsubishi - - 30,000,000 2,482,500,000
HDFC, Gift City, Mumbai 15,000,000 1,257,750,000 4,500,000 372,375,000
Emirates NBD Bank PJSC - - 10,000,000 827,500,000
Noor Islami Bank, Dubai, UAE 13,000,000 1,090,050,000 - -
Abu Dhabi Commercial bank 10,000,000 838,500,000 12,500,000 1,034,375,000
ID-Valvitalia Spa - - 1,268,398 104,959,926
Habib AG Zurich - - 6,050,000 500,637,500
State Bank of India - - 3,300,000 273,075,000
Nepal Bangladesh Bank Limited - - 5,000,000 413,750,000
The Commercial Bank, Qatar 6,000,000 503,100,000 - -
DBS Bank Singapore 18,000,000 1,509,300,000 - -
Banca Valsabbina SCPA Vestone Italy 1,290,875 108,239,902 - -
Sanima Bank, Nepal 3,375,000 282,993,750 - -
136,200,875 11,420,443,402 197,604,273 16,351,753,582
7 Deposits and other accounts
Customer deposits and other accounts (Note 7.1) 7,100,386 595,367,344 5,549,349 459,208,594

Bank Asia Limited
Off-shore Banking Unit (OBU)Notes to the Financial Statements
31 Dec 2019 31 Dec 2018
USD Taka USD Taka
7.1 Customer deposits and other accounts
Foreign currency (Current) 3,531,472 296,113,904 2,535,459 209,809,238
Other demand deposits(Current) 1,816,669 152,327,712 2,214,192 183,224,361
Fixed depost 1,752,245 146,925,728 799,698 66,174,995
7,100,386 595,367,344 5,549,349 459,208,594
8 Other liabilities
Provision for loans and advances (150,628) (12,630,144) 726,558 60,122,662
Provision for off balance sheet items (1,107) (92,858) 2,180 180,375
Due to Head Office 151,735 12,723,002 (728,738) (60,303,037)
FDR on Export Bill 48,425 4,060,473 - -
Interest suspense account 225 18,846 - -
48,650 4,079,319 - -
9 Acceptances and endorsements

Letters of credit (Back to Back) - - - -
Letters of credit (Acceptances) 24,518 2,055,858 160,443 13,276,658
24,518 2,055,858 160,443 13,276,658
10 Irrevocable letters of credit

Letters of credit (Back to Back) - - - -
Letters of credit (cash) 349,151 29,276,311 330,409 27,341,345
349,151 29,276,311 330,409 27,341,345
11 Interest income
Demand loan 17,436 1,452,793 6,553 540,590
Loan against trust receipt 8,380 698,190 19,205 1,584,448
Term loan - industrial 1,617,682 134,785,301 1,708,823 140,977,863
Term loan - others 2,259 188,235 5,942 490,175
Foreign bill purchased 12,296,826 1,024,571,538 11,341,751 935,694,486
Lease finance 52,895 4,407,190 28,276 2,332,735
13,995,478 1,166,103,247 13,110,549 1,081,620,297
12 Interest paid on deposits and borrowings etc.

Interest on deposit 48,601 4,049,409 11,073 913,498
Interest on borrowings 10,341,090 861,619,607 9,787,467 807,465,998
10,389,691 865,669,016 9,798,539 808,379,496
13 Commission, exchange and brokerage

Commission on L/C 7,752 645,896 8,041 663,383
Commission on export 69,689 5,806,497 51,476 4,246,805
Commission on PO, DD, TT, TC, etc 14,120 1,176,477 9,191 758,256
Foreign exchange gain and charges - 5,998,295 - 4,934,075
Fees and commission 893 74,405 1,344 110,879
92,454 13,701,570 70,052 10,713,397
14 Other operating income

SWIFT charge recovery 7,198 599,738 7,475 616,688
Other 332,564 27,709,236 308,639 25,462,722
339,762 28,308,974 316,114 26,079,410
362
Annex I
Bank Asia Limited

Statement of outstanding unreconciled entries
(nostro account)
Amount in USD
As per local book As per correspondents' book
Sl.
Period of unreconciliation Debit entries Credit entries Debit entries Credit entries
no.
No. USD No. USD No. USD No. USD
1 Less than 1 month 59 5,427,373 218 7,761,528 106 40,480,947 492 15,908,257
2 More than 1 month but less than 3 months 40 1,641,869 26 329,009 - - 124 2,274,479
3 More than 3 months but less than 6 months - - - - - - - -
6 More than 12 months - - - - - - - -
Total 99 7,069,242 244 8,090,536 106 40,480,947 616 18,182,737
Bank Asia Limited

363
Annex J
Bank Asia Limited
Reconciliation between Bangladesh Bank
statement and Bank’s book
The reconciling items relates to clearing of the following:

a. Bangladesh Bank cheques
b. Foreign currency demand drafts
c. Government bonds, Sanchayapatra, etc
As per Bangla- As per Bank’s Reconciling

desh General ledger Difference
Local currency Bank Statement
BDT BDT BDT
Bangladesh Bank, Dhaka 13,135,822,774.37 13,074,411,259.60 61,411,514.77
Bangladesh Bank, Dhaka (Al-wadeeah current account) 971,336,347.21 971,336,347.21 -
Bangladesh Bank, Chittagong 161,934,174.07 161,935,194.07 (1,020.00)
Bangladesh Bank, Sylhet 21,753,905.63 21,753,905.63 -
Bangladesh Bank, Khulna 4,155,838.67 4,129,378.67 26,460.00
Bangladesh Bank, Rajshahi 8,108,398.90 8,108,398.90 -
Bangladesh Bank, Bogra 20,363,816.54 20,343,109.34 20,707.20
Bangladesh Bank, Barishal 14,335,311.55 14,335,311.55 -
Bangladesh Bank, Rangpur 4,781,312.78 4,781,312.78 -
Total 14,342,591,879.72 14,281,134,217.75 61,457,661.97
Bank credited but not debited by Bangladesh Bank 37,868,732.00

Bank debited but not credited by Bangladesh Bank -
Bangladesh Bank credited but not debited by Bank 218,303,869.69
Bangladesh Bank debited but not credited by Bank (194,714,939.72)
61,457,661.97
As per
Reconciling
Bangladesh As per Bank’s general ledger
Foreign currency difference
Bank statement
USD USD BDT USD
USD Clearing account 66,228,786.04 64,518,957.60 5,477,659,500.24 1,709,828.44
Total 66,228,786.04 64,518,957.60 5,477,659,500.24 1,709,828.44
Bank credited but not debited by Bangladesh Bank 4,832,136.29

Bank debited but not credited by Bangladesh Bank (123,303.85)
Bangladesh Bank credited but not debited by Bank -
Bangladesh Bank debited but not credited by Bank (2,999,004.00)
1,709,828.44
364
Annex J
As per Bangla-
Reconciling
desh As per Bank’s general ledger
Bank statement
GBP GBP BDT GBP
GBP Clearing account 6,730.72 6,730.72 747,109.92 -
6,730.72 6,730.72 747,109.92 -
Bank credited but not debited by Bangladesh Bank -

Bangladesh Bank debited but not credited by Bank -
-
As per
Reconciling
Bank statement
EUR EUR BDT EUR
EUR Clearing account 56,435.88 56,435.88 5,355,765.01 -
56,435.88 56,435.88 5,355,765.01 -
Bank credited but not debited by Bangladesh Bank -

As per
Reconciling
Bank statement
JPY JPY BDT JPY
JPY Clearing account 45,238.00 45,238.00 36,190.40 -
45,238.00 45,238.00 36,190.40 -
Bank credited but not debited by Bangladesh Bank

-
Total (BDT) 19,764,932,783

Bank Asia Limited
Annex K
366
Bank Asia Limited Segment Reporting
The Bank reports its operations under the following business segments as per Bangladesh Financial Reporting Standards (BFRS) 8 “Operating segment”
Amount in Taka
Bank Asia Limited Bank Asia Limited and its subsidiaries
Inside
Inside Bangladesh Outside Bangladesh
Bangladesh Inter Consolidated
Particulars company
BA transaction
Conventional Islamic Off-shore Bank Asia BA Express
Total Exchange Com-
Banking Banking Banking unit Securities Ltd USA Inc.
pany (UK) Ltd
Interest income 20,348,415,168 1,348,621,170 1,166,103,247 22,863,139,585 321,231,320 - - (210,303,633) 22,974,067,272
Interest paid on deposits and 12,593,207,586 1,003,503,946 865,669,016 14,462,380,548 212,509,391 - - (210,303,633) 14,464,586,306
borrowings, etc
Net interest income 7,755,207,582 345,117,224 300,434,231 8,400,759,037 108,721,929 - - - 8,509,480,966
Investment income 3,261,853,584 31,211,410 - 3,293,064,994 - - - - 3,293,064,994
Commission, exchange 3,287,911,074 59,755,482 13,701,570 3,361,368,126 92,693,307 29,652,687 11,796,103 - 3,495,510,223
and brokerage
Other operating income 981,030,586 9,390,895 28,308,974 1,018,730,455 29,775,796 2,661,714 948,684 - 1,052,116,649
Total operating income (A) 15,286,002,826 445,475,011 342,444,775 16,073,922,612 231,191,032 32,314,401 12,744,787 - 7,840,691,866
Salaries and allowances 3,182,390,177 84,059,716 - 3,266,449,893 66,559,270 12,325,604 15,158,285 - 3,360,493,052
Rent, taxes, insurance, electricity, etc 430,008,972 9,826,725 257,549 440,093,246 17,321,041 6,804,596 7,502,418 - 471,721,301
Legal expenses 20,021,946 92,500 420,113 20,534,559 818,600 444,004 421,616 - 22,218,779
Postage, stamp, telecommunication, etc 122,888,552 862,710 720,396 124,471,658 1,579,425 570,892 220,696 - 126,842,671
Stationery, printing, advertisements, etc 155,106,660 1,532,772 50,561 156,689,993 1,234,650 1,357,957 221,243 - 159,503,843
Managing Director's salary and fees 16,572,420 - - 16,572,420 - - - - 16,572,420
Directors' fees 3,424,000 - - 3,424,000 302,400 - - - 3,726,400
Auditors' fees 1,478,225 - - 1,478,225 95,833 630,240 1,235,961 - 3,440,259
Depreciation and repairs of Bank's assets 829,342,241 4,733,774 - 834,076,015 4,709,168 2,033,364 1,648,136 - 842,466,683
Other expenses 1,826,261,037 42,724,634 18,682,659 1,887,668,330 11,032,998 6,329,186 9,288,053 - 1,914,318,567
Total operating expenses (B) 6,587,494,230 143,832,831 20,131,278 6,751,458,339 103,653,385 30,495,843 35,696,408 - 6,921,303,975
Profit before provision (C=A-B) 8,698,508,596 301,642,180 322,313,497 9,322,464,273 127,537,647 1,818,558 (22,951,621) - 9,428,868,857
Provision:
Provision for loans and advances/investments 5,653,030,046 36,000,000 - - - 5,689,030,046
Provision for off-balance sheet items (196,376,913) - - - - (196,376,913)
Provision for diminution in value of investments (80,000,000) 13,934,688 - - - (66,065,312)
Other provisions 25,000,000 - - - - 25,000,000
Total provision (D) 5,401,653,133 49,934,688 - - - 5,451,587,821
Profit before tax provision (E=C-D) 3,920,811,140 77,602,959 1,818,558 (22,951,621) - 3,977,281,036
Provision for taxation 1,960,000,000 59,469,389 - - - 2,019,469,389
Profit after tax provision 1,960,811,140 18,133,570 1,818,558 (22,951,621) - 1,957,811,647
Bank Asia Limited Annex K-1
Segment Reporting
The Bank reports its operations under the following business segments as per Bangladesh Financial Reporting Standards (BFRS) 8 “Operating segment”
Amount in Taka
Bank Asia Limited Bank Asia Limited and its subsidiaries
In side
Inside Bangladesh Outside Bangladesh Inter
Bangladesh Consolidated
Particulars company
BA Exchange transaction
Conventional Islamic Off-shore Bank Asia Se- BA Express
Total Company
Banking Banking Banking unit curities Ltd USA Inc.
(UK) Ltd
PROPERTY AND ASSETS
Cash 22,975,036,168 1,010,655,911 - 23,985,692,079 6,689 905,678 - - 23,986,604,446
Balance with other banks and financial
22,355,069,443 300,753,880 457,730,481 23,113,553,804 390,202,061 44,673,605 93,624,752 (7,056,652) 23,634,997,570
institutions
Money at call and on short notice 4,600,000,000 - - 4,600,000,000 - - - 4,600,000,000
Investments 53,746,745,393 1,049,300,000 136,534,543 54,932,579,936 594,391,990 - - - 55,526,971,926
Loans and advances/investments 194,422,286,102 13,304,712,470 19,571,957,476 227,298,956,048 4,649,980,291 - - (1,853,724,468) 230,095,211,871
Fixed assets including premises, furni-
7,020,717,893 4,884,814 - 7,025,602,707 35,734,740 1,797,251 2,758,533 - 7,065,893,231
ture and fixtures
Other assets 8,655,493,556 4,139,401,670 49,093,897 12,843,989,123 302,091,372 2,376,043 78,843,426 (2,416,751,730) 10,810,548,234
Non - banking assets - - - - - - - - -
Total assets 313,775,348,555 19,809,708,745 20,215,316,397 353,800,373,697 5,972,407,143 49,752,577 175,226,711 (4,277,532,850) 355,720,227,278

Liabilities
Borrowings from other banks,
financial institutions and agents 14,766,258,761 - 19,615,869,735 34,382,128,495 1,853,724,468 - - (1,853,724,468) 34,382,128,495
Subordinated Non-Convertible Zero
11,800,000,000 - - 11,800,000,000 - - - - 11,800,000,000
Coupon Bond
Deposits and other accounts 234,548,306,182 18,565,901,089 595,367,344 253,709,574,615 375,008,705 - - (7,056,652) 254,077,526,668
Other liabilities 28,051,670,261 1,243,807,656 4,079,318 29,163,552,669 1,704,550,663 92,327,339 217,275,726 (303,712,730) 30,873,993,667
Total liabilities 289,166,235,204 19,809,708,745 20,215,316,397 329,055,255,779 3,933,283,836 92,327,339 217,275,726 (2,164,493,850) 331,133,648,830
Total shareholders' equity 24,745,117,918 - - 24,745,117,918 2,039,123,307 (42,574,762) (42,049,015) (2,113,039,000) 24,586,578,448
Bank Asia Limited

Total liabilities and shareholders' equity 313,911,353,120 19,809,708,745 20,215,316,397 353,800,373,697 5,972,407,143 49,752,577 175,226,711 (4,277,532,850) 355,720,227,278
367
Annex-L
Bank Asia
Securities Limited
Independent Auditor’s Report
to the Shareholders of Bank Asia Securities Limited
Opinion
We have audited the accompanying financial statements of Bank Asia Securities Limited which comprise the Statement of Financial
Position as at 31 December 2019, Statement of Comprehensive Income, Statement of Changes in Equity and Statement of Cash Flows for
the year then ended, and Notes to the Financial Statements, including a summary of significant accounting policies.
In our opinion, the accompanying financial statements give true and fair view, in all material respects, of the financial position of the
company as at 31 December 2019, and of its financial performance and its cash flows for the year then ended in accordance with
International Financial Reporting Standards (IFRSs) as explained in note 02-03.
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are
further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are independent of
the company in accordance with the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants
(IESBA Code), and we have fulfilled our other ethical responsibilities in accordance with the IESBA Code. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Responsibilities of Management and Those Charged with Governance for the Financial Statements and Internal Controls
Management is responsible for the preparation and fair presentation of the financial statements in accordance with IFRSs as explained
in note 02-03, and for such internal control as management determines is necessary to enable the preparation of financial statements
that are free from material misstatement, whether due to fraud or error. The Bangladesh Securities and Exchange Commission rules and
regulations together with other applicable regulations require the Management to ensure effective internal audit, internal control and
risk management functions of the Company.
In preparing the financial statements, management is responsible for assessing the Company’s ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either
intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company’s financial reporting process.
Other Information
Management is responsible for the other information. The other information comprises the Directors’ Report, which we could not obtain
prior to the date of this auditors’ report, which is expected to be made available to us after that date.
Our opinion on the financial statements does not cover the other information and will 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 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.
If, based on the work we have performed on the other information that we obtained prior to the date of this auditors’ report, we
conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in
this regard.
When we read the Director’s Report, if we conclude that there is a material misstatement therein, we are required to communicate the
matter to those charged with governance and take appropriate actions in accordance with ISAs.
368
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high
level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional skepticism throughout the
audit. We also:
Identify and assess the risks of material misstatement of the 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.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the
circumstances.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures
made by management.
Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence
obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s
ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our
auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion.
Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or
conditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the
financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient and appropriate audit evidence regarding the financial information of the entities or business activities within the
Company to express an opinion on the financial statements. We are responsible for the direction, supervision and performance of
the audit. We remain solely responsible for our audit opinion.
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.
Report on other Legal and Regulatory Requirements
In accordance with the Companies Act 1994 and other applicable Laws and Regulations, we also report the following:
a) we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the
purposes of our audit and made due verification thereof;
b) in our opinion, proper books of account as required by law have been kept by the Company so far as it appeared from our
examination of these books;
c) the statement of financial position and Statement of Comprehensive Income dealt with by the report are in agreement with the
books of account and returns; and
d) the expenditure incurred was for the purposes of the Company’s business.
-sd-
Dated, Dhaka ACNABIN
19 February 2020 Chartered Accountants

Bank Asia Limited
Bank Asia
Securities Limited
Statement of Financial Position
Amount in Taka
31 Dec 2019 31 Dec 2018
Non-Current Assets
Property, plant and equipment 4 35,734,740 7,771,251
Demutualization membership of DSE 5 114,839,239 114,839,239
Total non- current assets 150,573,979 122,610,490
Current Assets
Advances, deposits and prepayments 17,171,496 3,770,111
Investment in shares at cost 479,552,751 430,164,859
Margin loans 4,649,980,291 4,993,663,846
Accounts receivable 43,575,667 18,259,115
Advance income tax 241,344,210 322,824,373
Deferred tax assets 1,635,140 1,918,965
Cash and cash equivalents 390,208,750 279,371,864
Total current assets 5,823,468,304 6,049,973,133
Total assets 5,974,042,283 6,172,583,623
Equity
Share capital 12 2,000,000,000 2,000,000,000
Retained earnings 13 40,758,447 22,908,701
2,040,758,447 2,022,908,701
Current Liabilities
Customer deposits 14 375,008,705 277,688,606
Loans and borrowings 15 1,853,724,468 2,120,125,642
Accounts payable 16 703,187 858,886
Liability for expenses 17 21,691,177 27,286,911
Interest suspense account 18 890,799,214 890,799,214
Provision for diminution in value of investments 19 33,703,549 19,768,861
Provision for client margin loan 20 554,494,169 518,494,169
Provision for corporate income tax 21 203,159,368 294,652,633
Total current liabilities 3,933,283,836 4,149,674,921
Total equity and liabilities 5,974,042,283 6,172,583,623
-sd- -sd- -sd-

Chairman Director Chief Executive Officer
-sd-
19 February 2020
Chartered Accountants
370
Bank Asia
Securities Limited
Statement of Profit or loss and Other Comprehensive income
Amount in Taka
31 Dec 2019 31 Dec 2018
Brokerage commission 23 92,693,307 97,015,477

Interest income 24 321,231,320 313,770,644
Interest expense 25 (212,509,391) (217,530,252)
Net interest income 108,721,929 96,240,393
Other operating income/loss 26 29,775,796 66,480,029
Total operating income 231,191,032 259,735,899
Operating expenses 27 (103,653,385) (88,575,869)
Profit before provision 127,537,647 171,160,029
Provision for diminution in value of investments 19 (13,934,688) -
Provision for client margin loan 20 (36,000,000) (110,000,000)
Profit /(Loss)before tax 77,602,959 61,160,029
Current tax expense 21 (59,469,389) (45,930,537)
Deferred tax Income/(expense) 22 (283,825) 1,918,965
Income tax expense (59,753,214) (44,011,572)
Profit/ (Loss) after tax 17,849,745 17,148,458
Other comprehensive income - -
Total comprehensive income/(loss) 17,849,745 17,148,458
Earnings per share 28 0.89 0.86
-sd- -sd- -sd-

-sd-
19 February 2020

Bank Asia Limited
Bank Asia
Securities Limited
Statement of Cash Flows
Amount in Taka
31 Dec 2019 31 Dec 2018
A. Cash flows from operating activities
Cash received from
Interest income 321,231,320 221,419,694
Brokerage commission 92,693,307 96,619,691
Cash payment for
Interest expenses (212,509,391) (164,603,698)
Operating expenses (104,539,951) (80,865,373)
Customers' deposits 97,320,099 20,167,195
Margin loan to customers 373,459,352 186,742,582
Other assets (38,717,936) 25,775,887
Accounts Payable (155,699) (685,068)
Income tax paid (69,482,491) (83,637,133)
Net cash flows from/ (used in) operating activities 459,298,609 220,933,777
B. Cash flows from investing activities
Investment in listed securities (49,387,892) 16,248,013
Demutualization membership of DSE - 38,279,761
Acquisition of property, plant and equipment (32,672,657) (5,369,121)
Net cash from/ (used in) investing activities (82,060,549) 49,158,653
C. Cash flows from financing activities
Loans and borrowings (266,401,174) (326,941,692)
Net cash (used in)/ from financing activities (266,401,174) (326,941,692)
D. Net increase/(decrease) in cash and cash equivalents (A+B+C) 110,836,886 (56,849,262)
E. Opening cash and cash equivalents 279,371,864 336,221,126
F. Closing cash and cash equivalents 390,208,750 279,371,864
-sd- -sd- -sd-

-sd-
19 February 2020
372
Bank Asia
Securities Limited
Statement of Changes in Equity
Amount in Taka
Retained earn-
Share
Share capital ings/ (Accumu- Total
Premium
lated Losses)
Year ended 31 Dec 2018

Opening balance 2,000,000,000 - 5,760,244 2,005,760,244
Net profit for the year - - 17,148,458 17,148,458
Closing balance 2,000,000,000 - 22,908,701 2,022,908,701
Year ended 31 Dec 2019

Opening balance 2,000,000,000 - 22,908,701 2,022,908,701
Net profit for the year - - 17,849,745 17,849,745
Closing balance 2,000,000,000 - 40,758,447 2,040,758,447
-sd- -sd- -sd-

-sd-
Dated, Dhaka
ACNABIN
19 February 2020
Bank Asia Limited

373
Bank Asia
Securities Limited
1. Reporting entity
Bank Asia Securities Limited (“the Company”), a majority owned subsidiary company of Bank Asia Limited was incorporated as a
private limited company in Bangladesh on 04 August 2010 bearing certificate of incorporation no. C-86230/10 dated 04 August 2010
under the Companies Act 1994 having its registered office at Hadi Mansion (2nd Floor), 2 Dilkusha Commercial Area, Dhaka 1000.
The Company obtained permission from Bangladesh Securities and Exchange Commission on 16 March 2011 to operate as a
full fledged stock broker and stock dealer bearing registration nos. Reg/3.1/DSE-237/2011/463 and Reg/3.1/DSE-237/2011/464
respectively.
The main objective of the Company is to act as a full fledged stock broker and stock dealer to execute buy and sell orders and to
maintain own portfolio as well as customers portfolio under the discretion of customers. The Company also performs the other
activities relates to capital market as and when regulators permits the company to carry out activities as per their guidelines.
2. Basis of preparation
2.1 Statement of compliance
The financial statements of the Company are prepared on a going concern basis under historical cost conversion in accor-
dance following International Financial Reporting Standards (IFRSs)/International Accounting Standards (IASs), The Com-
panies Act-1994, and other laws and rules applicable in Bangladesh. Wherever appropriate, such principles are explained in
succeeding notes.
2.2 Components of the financial statements
The financial statements referred to here comprise:
a) Statement of Financial Position;
b) Statement of Profit or loss and Other Comprehensive income;
c) Statement of Cash Flows;
d) Statement of Changes in Equity; and
e) Notes to the Financial Statements.
2.3 Use of estimates and judgments
The preparation of financial statements in conformity with IFRS requires management to make judgments, estimates and
assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and
expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing
basis. Revisions to accounting estimates are reviewed on an ongoing basis. Revisions to accounting estimates are recognized
in the periods in which the estimate is revised and in any future periods affected.
Key estimates include the following:
* Property, Plant and Equipment
* Provision on margin loan and Investment in shares
* Deffered Tax Asset/Liabiilities
2.4 Statement of cash flows
Statement of Cash Flows has been prepared as per International Accounting Standard IAS-7 under direct method. The Cash Flow
Statement shows the structure of and changes in cash and cash equivalents during the year. Cash Flows during the year have
been classified as operating activities, investing activities and financing activities.
2.5 Reporting period
These financial statements cover period from 1 January 2019 to 31 December 2019.
2.6 Date of authorization
The Board of Directors accorded its approval and authorized these financial statements on 19 February 2020.
2.7 Functional and presentational currency
The financial statements are presented in Bangladesh Taka, which is the Company’s functional currency.
374
Bank Asia
Securities Limited
2.8 Share capital
Ordinary shares are classified as equity when there is no contractual obligation to transfer cash or other financial assets.
2.9 Going concern
The Company has adequate resources to continue its operation for foreseeable future. For this reason the directors continue
to adopt going concern basis in preparing the financial statements. The current credit facilities and adequate resources of the
Company provide sufficient funds to meet the present requirements of its existing businesses and operations to continue.
2.10 Investment in securities
These securities are bought and held primarily for the purpose of selling them in future or held for dividend incomes which are
reported at fair value. Unrealized gains are not recognized in the profit and loss statement. But provision was made for diminu-
tion in value of investment as per BSEC guideline.
2.11 Provision, Contingent asset and contingent liabilities
As per IAS-37 “Provisions, Contingent Liabilities and Contingent Assets” the Bank Asia Securities Limited recognises provisions
only when it has a present obligation as a result of a past event and it is probable that an outflow of resources embodying
economic benefits will be required to settle the obligation and when a reliable estimate of the amount of the obligation can be
made.
Any possible obligation that arises from 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 Company; 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 result in the recognition of income which may never
be realised.
2.12 Taxation
Current tax
Provision for current tax is made in accordance with the provision of Income Tax Ordinance, 1984 and subsequent amendments
made thereto from time to time.
Deferred Tax
Deferred Tax is calculated as per International Accounting Standard IAS-12 “Income Taxes”. Deferred Tax is recognized on differ-
ences between the carrying amount of assets and liabilities in the financial statements and the corresponding tax bases used
in the computation of taxable profit and are accounted for using the balance sheet liability method. Deferred Tax liabilities are
recognized for all taxable temporary differences. Deferred Tax assets are generally recognized for all deductible temporary differ-
ences.
Deferred Tax is measured at the tax rate that is 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.
2.13 Branch Details
The Company has a total five number of Branch offices, Two Extension Office (excluding Head Office), with no overseas branch as
on December 31, 2019.
Accounts of the branches are maintained at the head offices which are included in the accompanying financial statements.
3. Significant accounting policies
The accounting policies set out below have been applied consistently to all periods presented in these financial statements.
Certain comparative amounts have been reclassified to conform with the current year’s presentation.

Bank Asia Limited
Bank Asia
Securities Limited
3.1 Revenue Recognition
In terms of provision of IFRS-15 on revenue and disclosures in the financial statements of the company the following items
have been recognized as mentioned.
Brokerage commission
Income from brokerage is recognised on daily basis in the Statement of Comprehensive Income after receiving the trading
note of securities transacted from Dhaka Stock Exchange Limited, at which point performance is assured to be completed.
Interest Income from margin loan
Interest on loans and advances is calculated on daily product basis, but charged and accounted for on quarterly basis except
negative equity clients where interest is recognized based on effective interest rate which is estimated recoverable amount as
per IFRS-9.
Dividend income and profit/ (loss) on sale of marketable securities
Dividend income is recognized when right to receive payment is established whereas profit or loss arising from the sale of
securities is accounted for only when shares are sold in the market and profit is realized or loss is incurred.
3.2 Interest paid and other expenses
In terms of the provisions of IAS-1 “Presentation of Financial Statements” interest and other expenses are recognized on
accrual basis.
3.3 Earnings per share

Earnings per share (EPS) has been computed by dividing the basic earnings by the weighted average number of ordinary
shares outstanding at 31 December 2019 as per International Accounting Standard IAS- 33 “Earnings Per Share”.
3.4 Property, plant and equipment

Items of property, plant and equipment, are measured at cost less accumulated depreciation and impairment losses, as per
IAS-16: Property, Plant and Equipment. Cost includes expenditures that are directly attributable to the acquisition of the
asset.
Subsequent costs
The cost of replacing part of an item of property, plant and equipment is recognised in the carrying amount of the item if it is
probable that the future economic benefits embodied within the part will flow to the Company and its cost can be measured
reliably. The cost of day-to-day servicing items of property, plant and equipment are expensed when incurred.
Depreciation
Depreciation is charged on straight-line method. Charging depreciation against fixed assets commences from the month of
acquisition (for full month) and ceases at the month when the assets are disposed.
3.5 Intangible assets
Computer software
Computer software acquired by the Company which have finite useful lives are measured at cost less accumulated
amortisation.
Subsequent costs
Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific asset to
which it relates. All other expenditure is recognised in profit or loss.
Amortisation of intangible assets
Computer software are amortised @ 20% per annum in a straight-line method.
376
BA EXCHANGE COMPANY (UK) LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 31 DECEMBER 2019
The directors present their annual report and financial statements for the year ended 31 December 2019.
Principal activities
The principal activity of the Company is the provision of bureau de change services.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr. A Rouf Chowdhury
Mr. Arfan Ali
Mr. Abm Kamrul Huda Azad
Results and dividends
The profit for the year, after taxation, amounted to £17,312 (2018 - loss £194,053).
The directors have not declared a dividend for the year.
Post reporting date events
There have been no significant events affecting the Company since the year end.
Future developments
The Company is constantly looking at opportunities to develop and refine its business models and is constantly speaking with third
parties for potentials of expanding the business and network further and parent entity is willing to support this.
Auditor
The auditors, AGP Consulting, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board on 25th September 2019 and signed on its behalf.
Statement of directors’ responsibilities
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and
regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elect-
ed to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United King-
dom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless
they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for
that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will contin-
ue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s trans-
actions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that
the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company
and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of
which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought
to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s
auditor is aware of that information.
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
On behalf of the board
..............................
Mr. Abm Kamrul Huda Azad
Director

Bank Asia Limited
INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF
OPINION
We have audited the financial statements of BA Exchange Company (UK) Limited (the ‘company’) for the year ended 31 December
2019 which comprise the profit and loss account, the balance sheet and notes to the financial statements, including a summary of
significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and
United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of
Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:

give a true and fair view of the state of the company’s affairs as at 31 December 2019 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
BASIS FOR OPINION

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our
responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements
section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit
of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in
accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our opinion.
CONCLUSIONS RELATING TO GOING CONCERN

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
the directors’ use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt
about the company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from
the date when the financial statements are authorised for issue.
OTHER INFORMATION
The directors are responsible for the other information. The other information comprises the information included in the annual report,
other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other
information and, except to the extent otherwise explicitly stated in our report, 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 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. If we identify such material inconsistencies or apparent material misstatements, we are
required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other
information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we
are required to report that fact.
We have nothing to report in this regard.
OPINION ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006

In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors’ report for the financial year for which the financial statements are
prepared is consistent with the financial statements; and
the strategic report and the directors’ report have been prepared in accordance with applicable legal requirements.
MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not
identified material misstatements in the directors’ report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not
visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors’ remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit; or
the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take
advantage of the small companies’ exemption in preparing the directors’ report.
378
INDEPENDENT AUDITORS’ REPORT TO
THE SHAREHOLDERS OF BA EXCHANGE
COMPANY (UK) LIMITED
RESPONSIBILITIES OF DIRECTORS
As explained more fully in the directors’ responsibilities statement, the directors are responsible for the preparation of the
financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors
determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to
fraud or error.
In preparing the financial statements, the directors are responsible for assessing the company’s ability to continue as a going
concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the
directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
AUDITORS’ RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a
high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial
statements.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s
website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act
2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to
state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the company and the company’s members, as a body, for our audit work, for this report, or for
the opinions we have formed.
for and on behalf of

AGP Consulting
Statutory Auditor
Q West
Great West Road
Brentford
TW8 0GP

Bank Asia Limited
PROFIT AND LOSS ACCOUNT
2019 2018
£ £
Turnover 307,640 103,279

Cost of sales (47,768) (96,063)
GROSS PROFIT 259,872 7,216
Administrative expenses (242,560) (201,269)
(Loss)/profit before taxation 17,312 (194,053)
Tax on (loss)/profit - -
Profit for the Financial Year 17,312 (194,053)
BALANCE SHEET
AS AT 31 DECEMBER 2019
2019 2018
£ £ £ £
FIXED ASSETS
Tangible assets 16,563 28,795
CURRENT ASSETS
Debtors 21,898 21,644
Cash at bank and in hand 420,047 396,475
441,945 418,119
Creditors: amounts falling due within one year (850,867) (856,585)
NET CURRENT LIABILITIES (408,922) (438,466)

(392,359) (409,671)
TOTAL ASSET LESS CURRENT LIABILITIES
CAPITAL AND RESERVES
Called up share capital 300,000 300,000
Profit and loss account (692,359) (709,671)
Total equity (392,359) (409,671)
380
NOTES TO THE
FINANCIAL STATEMENTS
1. Accounting policies
Company information
BA Exchange Company (UK) Limited is a private company limited by shares incorporated in England and Wales. The registered
office is 125 Whitechapel Road, London, E1 1DT.
1.1 Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable
in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies
subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than
where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in
these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of free-
hold properties and to include investment properties and certain financial instruments at fair value. The principal accounting
policies adopted are set out below.
1.2 Going concern

The directors consider that the Company will be able to rely upon sufficient additional support from the parent undertaking
for at least the next 12 month or by arranging funds through and alternative means possibly by way of a loan from one of the
directors and the Board of the Bank has approved this, to allow the Company to be able to meet all its commitments as they
fall due.
Therefore the directors consider that the going concern basis is appropriate in respect of the financial statements for the year
ended 31 December 2019.
1.3 Turnover
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue
can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding
discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is
recognised:
Commission income
Income from remittance services is recognised when a customer gives instructions to the Company to make a remittance on
their behalf.
1.4 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and
any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on
the following bases:
Leasehold land and buildings 10% Straight line basis

Fixtures and fittings 25% Reducing balance basis

Bank Asia Limited
BA EXPRESS USA INC.
INDEPENDENT
AUDITOR’S REPORT
To the Board of Directors and

BA Express USA Inc.
We have audited the accompanying balance sheet of BA Express USA Inc. (a New York Corporation)as of December 31, 2019, and
the related statements of income, retained earnings, and cash flows for the year then ended.These financial statements are the
responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on
our audit.
We conducted our audit in accordance with generally accepted auditing standards.Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used a significant estimate made by management, as well as evaluating the
overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly , in all material respects, the financial position of BA Express
USA Inc. as of December 31, 2019. and the results of its operations and its cash flows for the year then ended in conformity with
generally accepted accounting principles.
-sd-
New York, New York
March 13, 2020
Arman Chowdhury, CPA, P.C.

87-54 168th Street, Suite #201
Jamaica, NY 11432
382
BA EXPRESS USA INC.
BALANCE SHEET
For the Year Ended December 31, 2019
(See accompanying auditor’s report )
Assets 2019 ($)

Current Assets:
Cash in Bank 1,116,574
Accounts Receivable 888,071
Other Current Assets 18,060
Total Current Assets 2,022,705
Fixed assets, net 32,898

Organizational Costs, net 8,460
Security deposits 25,700
Total Fixed Assets 67,058
Total assets 2,089,764
LIABILITIES AND STOCKHOLDER'S EQUITY

Current Liabilities :
Remittance payable to Bank Asia 2,576,540
Beneficiary 2,006
Accrued Taxes and other liabilities 10,000
Withholding Taxes 2,697
Total Current Liabilities 2,591,242
Total stockholder's equity (501,479)
Total Liabilities & Stockholder's Equity 2,089,764

Bank Asia Limited
BA EXPRESS USA INC.
STOCKHOLDER’S EQUITY
2019 ($)
Paid in Capital 960,000
Retained Earnings beginning of the year (1,183,904)
Net Income / (Loss ) for the twelve months ended December 31, 2019. (277,574)
Retained Earnings at the end of Dec. 31, 2019 (1,461,479)
Total Stockholder's Equity (501,479)

The accompanying notes are an integral part of these financial statements.
STATEMENT OF INCOME AND

RETAINED EARNINGS
2019 ($)
Revenue
Agent Commission / Fees Income 160,293
FX Commission/ Gain 79,304
Other Income -
Interest Income 11,386
Total revenue 250,983
Expenses
General and Administrative expenses
New York, office expenses 490,780
Depreciation and Amortization 20,657
Total 511,437
Operating income before taxes (260,454)
Income Taxes
NYS and NYC (17,120)
Net Income (loss) (277,574)
Retained Earnings at the beginning of the period (1,183,904)
Retained Earnings at the end of the year (1,461,479)
384
BA EXPRESS USA INC.
STATEMENT OF
CASH FLOW
2019 ($)
Cash flow from operating activities :
Net Income (277,574)
Adjustments to reconcile net income to net cash Provided by (used in) operating activities :
Depreciation 19,780
Amortization 877
Receivable from Agents 287,246
Due to parent bank 196,395
Other Liabilities 1,625
Due to beneficiary (9,025)
Accrued taxes (1,719)
Net cash Flow from operation 217,605
Cash flow from investing activities:

Fixed Assets (761)
Security Deposits (1,500)
Leasehold Improvements (8,800)
Net Cash provided by investing activities 206,544
Cash flow from Financing Activities:

Paid in Capital -
Net increase (decrease) in cash

Cash at beginning of the period 206,544
Adjustment 910,030
Cash at the end of the year 1,116,574

Bank Asia Limited
BA EXPRESS USA INC.
NOTES TO FINANCIAL STATEMENTS
Note A. Nature of the Organization and reports

These financial statements are prepared to the best of the management’s knowledge, belief and actual transactions as of December
31, 2019.
BA Express USA Inc. is 100% owned by Bank Asia Ltd,commercial Bank in Bangladesh
Company was incorporated on September 20, 2011 under the laws of the State of New York. On June 28, 2013 the company received
license as an international money transmitter from the state of New York Department of financial Services.
BA Express USA INC “BA Express” maintains its offices in New York. BA Express signed paying agent agreement with Bank Asia Ltd.
Bank Asia distributes all funds to Beneficiaries in Bangladesh
Related Party Transactions and Shareholders
The company has been operating from 168-29 HILLSIDE AVE, Suite 2B JAMAICA, NEW YORK, 11432.
The Company’s principal Shareholder is :

Owner Related Party Correspondent
Bank Asia Ltd 100% Yes Yes
Note B. Surety Bond / Collateral

The Company has signed agreement with NYS Department of Financial Services and provided $500,000 as collateral, as pledge to
Superintendent. This $500,000 is held at HAB Bank in NY.

Note C. Summary of significant Accounting Policies
Revenue Recognition: The majority of the company’s revenues are comprised of the transaction-based fees, which typically
constitutes a percentage of dollar volume processed, per transaction processed, or some combination thereof.

Revenue is primarily derived from two sources
1. Transaction fees charged to money transfer consumer.
2. The company generates revenue by acquiring currency at higher rate (wholesale) and sell the currency to the customer at retail
exchange rates (lower).

Fees from typical money transfers are generally based on the principal amount of the transaction and the location where the funds
are to be transferred. This transaction is sent by the Company and is recorded as revenue at the time of sale.
Agent Commissions: There are generally two agent locations involved in a money transfer transaction, the agent initiating the
transaction (receiving agent ) and the correspondent disbursing funds. The receiving agent earns a commission generally based on
a percentage of the fee charged to the customer. Receiving Agent commissions are recorded as Expenses.

Use of Estimates: The preparation of financial statements in conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results
could differ from those estimates.
386

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FINANCIAL

Basis for Opinion

Key Audit Matters

Annual Integrated Report 2019 267

Report on other Legal and Regulatory Requirements

Dated, Dhaka Md. Mominul Karim, FCA

Annual Integrated Report 2019 269

Notes 31 Dec 2019 31 Dec 2018

Notes 31 Dec 2019 31 Dec 2018

Chairman Director Director Director President and Managing Director

Report of the auditor’s to the shareholders:

Annual Integrated Report 2019 271

for the year ended 31 December 2019

Chairman Director Director Director President and Managing Director

Report of the auditor’s to the shareholders:

for the year ended 31 December 2019

Chairman Director Director Director President and Managing Director

Annual Integrated Report 2019 273

Chairman Director Director Director President and Managing Director

Annual Integrated Report 2019 275

Notes 31 Dec 2019 31 Dec 2018

Chairman Director Director Director President and Managing Director

Report of the auditor’s to the shareholders:

Notes 31 Dec 2019 31 Dec 2018

Chairman Director Director Director President and Managing Director

Report of the auditor’s to the shareholders:

Annual Integrated Report 2019 277

Chairman Director Director Director President and Managing Director

Chairman Director Director Director President and Managing Director

Bank Asia Limited

Money at call and on short notice 4,600,000,000 - - - - 4,600,000,000

Chairman Director Director Director President and Managing Director

1. THE BANK AND ITS ACTIVITIES

1.1 Bank Asia Limited

1.2 Principal activities

1.3 Islamic banking unit

1.4 Off-shore banking unit

1.5 Bank Asia Securities Limited

1.6 BA Exchange Company (UK) Limited

1.7 BA Express USA inc

Annual Integrated Report 2019 281

i) Presentation of financial statements

ii) Investment in shares and Securities

iii) Revaluation gain/loss on Government securities

iv) Provision on loans and advances

v) Other comprehensive income

vi) Financial instruments – presentation and disclosure

vii) Repo transactions

viii) Financial guarantees

Annual Integrated Report 2019 283

Key estimates include the following:

Foreign currency translation

2.5 Basis of consolidation

Annual Integrated Report 2019 285

2.6 Cash flow statement

2.7 Statement of changes in equity

3.1.6 Loans and advances/investments

Annual Integrated Report 2019 287

Annual Integrated Report 2019 289