Sonali Investment Limited

Statement of Financial Position

As at 31 December 2019

Particulars Notes Amount in Taka

2019 2018
Assets
Non-Current Assets
Property, Plant & Equipment 4.00 753,558 1,209,822
Investment in Shares 5.00 447,436,363 412,674,574
Total Non-Current Assets 448,189,921 413,884,396
Current Assets:
Portfolio Margin Loan to Investors 6.00 2,170,510,950 2,236,624,810
Advance, Deposit and Prepayments 7.00 300,000 375,255
Advance Income Tax 8.00 97,093,316 70,593,100
Other Assets 9.00 6,960,946 5,817,851
Other Receivables 10.00 9,667,766 38,953,231
Cash and Cash Equivalents 11.00 144,096,074 97,527,448
Total Current Assets 2,428,629,052 2,449,891,694
Total Assets 2,876,818,973 2,863,776,090
Equity & Liabilities
Capital and Reserves

Share Capital 12.00 2,000,000,000 2,000,000,000

Retained Earnings 13.00 (84,068,710) (135,097,549)
1,915,931,290 1,864,902,451
Current Liabilities & Provision:
Portfolio Margin Deposit Control Accounts 14.00 23,010,134 41,006,815
Payable for Client Sale 957,496 3,219,893
Liabilities for Expenses 15.00 6,555,755 5,249,036
Other Liabilities 16.00 372,217,061 410,905,289
Provision Against Portfolio Margin Loan 17.00 389,011,538 389,011,538
Provision Against Investment in Shares 18.00 83,296,334 83,296,334
Liabilities for Income Tax 19.00 85,839,367 66,184,734
Total Current Liabilities & Provision 960,887,684 998,873,639
Total Equity and Liabilities 2,876,818,973 2,863,776,090

The annexed notes 01 to 44 form an integral part of these financial statements.

Chief Executive Officer Director Chairman

Signed in terms of our separate report of even date annexed.

28 April 2020
Dhaka S. F. Ahmed & Co.
Chartered Accountants
 Sonali Investment Limited
Statement of Profit or Loss and
Other Comprehensive Income
For the year ended 31 December 2019

Particulars Notes Amount in Taka

2019 2018
Operating Income :
Interest Income 20.00 67,711,796 82,346,569
Interest Expenses 21.00 (551,429) (457,474)
Net Interest Income 67,160,367 81,889,095
Capital Gain/(Loss) on Sale of Shares (Own Portfolio) 10,804,341 7,924,924
Dividend Income 22.00 8,536,030 10,106,987
Fees and Commission Income 23.00 19,739,851 18,807,571
Other Operating Income 24.A 98,550 169,350
Total Operating Income (A) 106,339,139 118,897,926
Operating Expenses :
Salaries & Allowances 25.00 17,797,282 17,168,920
Rent, Rates, Insurance, Lighting 26.00 5,935,032 7,783,689
Postage, Telephone and Stamp 27.00 105,986 144,623
Stationery, Printing & Advertisement 28.00 193,145 247,385
Directors Fees & Honorarium 29.00 386,600 561,750
Repairs & Maintenance 30.00 565,917 948,989
Other Operating Expenses 31.00 4,776,805 4,897,125
CDBL Charges 301,667 308,007
Depreciation 4.02 456,264 491,807
Total Operating Expenses (B) 30,518,698 32,552,294
Non-Operating Income ( C ) 25.B 52,750 62,510
Profit Before Provision (A-B+C) 75,873,191 86,408,142
Provision for Loans / Investments:
Other Provision 16.02 2,000,000 3,000,000
Total Provision for Loans / Investments 2,000,000 3,000,000
Profit Before Tax 73,873,191 83,408,142
Income Tax Expense
Current Tax Expenses 32.00 (23,987,448) (28,440,912)
Deferred Tax 33.00 1,143,095 603,360
Net Profit after Tax 51,028,839 55,570,590
Earnings per Share 34.00 0.26 0.28

The annexed notes 1 to 44 form an integral part of these financial statements.

Chief Executive Officer Director Chairman

Signed in terms of our separate report of even date annexed.

28 April 2020
Dhaka
S. F. Ahmed & Co.
 Sonali Investment Limited
Statement of Changes in Equity
For the year ended 31 December 2019

Amount in Taka
Particulars Share Capital Retained Earnings Total Equity
Balance as on 01.01.2019 2,000,000,000 (135,097,549) 1,864,902,451
Prior years' - - -
Net Profit after Tax - 51,028,839 51,028,839
Balance as at 31.12.2019 2,000,000,000 (84,068,710) 1,915,931,290

For the year ended 31 December 2018

Amount in Taka
Particulars Share Capital Retained Earnings Total Equity
Balance as on 01.01.2018 2,000,000,000 (190,668,138) 1,809,331,862
Prior years' - - -
Net Profit after Tax - 55,570,590 55,570,590
Balance as at 31.12. 2018 2,000,000,000 (135,097,549) 1,864,902,451

Chief Executive Officer Director Chairman

28 April 2020
Dhaka
 Sonali Investment Limited
Statement of Cash Flows
For the year ended 31 December 2019

Particulars Amo
2019 2018
Cash flows from operating activities
Receipts from interest income 67,711,796 82,346,569
Receipts from other income 39,231,521 37,071,341
106,943,317 119,417,909
Payments to suppliers, employees & others (91,175,334) (94,633,887)
Net cash generated by operating activities (A) 15,767,983 24,784,023
Cash flows from investing activities
(Payments)/Receipts for property, plant and equipment - 53,647
Payments for investment in shares (34,761,788) (49,979,622)
(Increase)/Decrease in margin loan 66,113,860 36,826,645
Net cash generated by investing activities (B) 31,352,072 (13,099,330)
Cash flows from financing activities
Proceeds from issue of share capital - -
Proceeds from SBL loans - -
Finance cost recognized in profit and loss (551,429) (457,474)
Net cash used in financing activities ( C) (551,429) (457,473)
Net increase in cash and cash equivalents (A+B+C) 46,568,626 11,227,220
Cash and cash equivalents at the beginning of the year 97,527,448 86,300,228
Cash and cash equivalents at the end of the year 144,096,074 97,527,448

Chief Executive

Director Chairman
 Audit Committee
Audit Committee of Sonali Bank Limited has been constituted by the Board of Directors as
per BRPD Circular No. 12 dated 23 December 2002 comprising the following members:
Status in Status with
Sl. Name the the Educational
No. Bank committee qualification
B.Com (Hons.), M.com
1 Mr. A.K.M. Kamrul Islam FCA, Director Chairman (Accounting), FCA, FCS
FCS
2 Mr. Ishtiaque Ahmed Director Member M.A (Political science),
Chowdhury L.L.B
3 Dr. Doulatunnaher Khanam Director Member P.H.D (Economics)
4 Mr. Md. Mofazzal Husain Director Member M.B.A, IBA (D.U )
5 Mr. Molla Abdul Wadud Director Member M.Com., L.L.B
Duties and Responsibilities of the Audit Committee:
i) To Evaluate internal control and compliance, risk management, computerization and
system of MIS of the bank.
ii) To review annual financial statements of the bank and exchange views with
external auditors and Bank management in the regard.
iii) To consider if the recommendations made by internal & External Auditors are in
order to develop internal control strategy by the Bank Management.
iv) To review as to whether the rules and regulation made by controlling authorities like Bangladesh
Bank and other regulatory bodies are duly followed.
v) To appraise the Bank’s Board of Directors regarding Lapses and errors/ Frauds & Forgeries/ other
irregularities detected by internal auditors, external auditors & Bangladesh Bank inspection team and
corrective measures taken for the purpose of effective control.
During the year 2019 the Audit Committee has conducted 8 (eight) meetings in which, among others, the
following issues were discussed:
i) Comprehensive inspection reports of Bangladesh Bank including status of Compliance thereof.

ii) Inspection reports of branches/Head Office conducted by Bank’s internal inspection team.

iii) Financial Statements of the Bank.

iv) Half yearly accounts of 2019 of the Bank.

v) Status of compliance of different rules and regulations.
Annual financial statements have been discussed with the External Auditors in the Audit Committee meeting
held on 30 June 2020.
vi)
The Audit Committee of the Board of Sonali Bank Limited has been functioning as a sub-committee appointed by the
Bank’s Board of Directors in compliance with the Bank Company Act 1991 (amended 2013), Bangladesh Bank’s BRPD
Circular No. 11 of 27 October 2013 and the relevant Notifications of Bangladesh Securities and Exchange Commission
(BSEC) as well as international best practices on Corporate Governance. The primary purposes of the Audit Committee are
to provide independent and objective oversight of the accounting and financial reporting functions along with the internal
controls of the Bank and its affiliates and to ensure the objectivity of the Bank’s financial statements. The Audit
Committee’s function is one of oversight and review, and it is not required to prepare or audit the financial statements, to
define the scope of the audit, to control the Company’s accounting policies and practices, or to define the standards used
in preparing the financial statements

The roles and responsibilities of Audit Committee of Sonali Bank Limited have been specified by considering the provisions
of BRPD Circular No 11 of 27 October 2013 Corporate Governance Notification issued by BSEC on 10 June 2018 and other
best practice corporate governance guidelines and standards.

The Corporation has agreed to a license agreement with its sole stockholder which permits it to use the name
“Sonali”, and to have the benefit of certain management and advertising services unique to the sole shareholder. In
exchange for receiving those benefits, the corporation is required to provide a secured interest over all its property,
goods and chattels including but without limitation the security deposit, money transmitter’s licenses, and all goods
costs and all acquired property, goods, and chattels to secure all the present and future liabilities and
obligations of this License. As a result of this agreement and initial inception of the business, transactions have
occurred with related parties. These transactions are not quantified in the financial statements
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the
 An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the

financial statements.
The procedures selected depend on the auditor’s judgment, including the assessment of the
risks of material misstatement of the financial statements, whether due to fraud or error. In making
those risk assessments, the auditor considers internal control relevant to the entity’s preparation and
fair presentation of the financial statements in order to design audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s
internal control. Accordingly, we express no such opinion. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluating the overall presentation of the financial
statements.
I believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinion.