151

Directors’ Report
 FIRST SECURITY ISLAMI BANK LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2019

31.12.2019 31.12.2018
Notes
BDT BDT

PROPERTY AND ASSETS

Cash 3 30,740,604,444 19,518,280,311
In hand (including foreign currencies) 2,296,717,472 1,873,791,145
Balance with Bangladesh Bank and its Agent Bank(s) 28,443,886,972 17,644,489,166
(including foreign currencies)

Balance with other Banks and Financial Institutions 4.1 793,301,325 1,083,755,432
In Bangladesh 113,706,681 163,679,780
Outside Bangladesh 679,594,644 920,075,652

Placement with Banks & Other Financial Institutions 4.2 13,603,700,000 13,603,700,000

Investments in Shares & Securities 5 17,527,652,622 15,981,691,023

Government 16,700,000,000 15,100,000,000
Others 827,652,622 881,691,023

Investments 6 364,484,142,678 311,684,988,928

General Investment etc. 6.A 363,775,732,135 311,069,741,359
Bills Purchased and Negotiated 6.B 708,410,543 615,247,569

Fixed Assets Including Premises, Furniture & Fixtures

7 6,435,173,130 3,428,644,625
and Intangible Assets
Other Assets 8 3,569,114,671 6,009,577,745
Non Banking Assets 9 25,145,280 25,145,280
Total Assets 437,178,834,150 371,335,783,344

LIABILITIES AND CAPITAL

Liabilities
Placement from Banks & Other Financial Institutions 10 13,208,381,804 17,537,698,204

Deposits and Other Accounts 11 376,621,662,451 320,021,798,490

Al-Wadia Current Deposits and Other Deposit Accounts 11.1 26,511,403,138 22,846,515,806
Bills Payable 11.2 2,500,692,222 1,706,699,861
Mudaraba Savings Deposits 11.3 38,622,550,795 33,974,075,620
Mudaraba Term Deposits 11.4 221,730,763,524 202,840,633,000
Other Mudaraba Deposits 11.5 87,256,252,772 58,653,874,203

Mudaraba Subordinated Bond 12 11,500,000,000 4,862,000,000

Other Liabilities 13 20,533,726,345 15,656,211,843
Total Liabilities 421,863,770,600 358,077,708,537
Capital/Shareholders' equity
Paid-up Capital 14.1 8,625,092,740 7,840,993,400
Statutory Reserve 15 4,339,990,406 3,556,551,892
Other Reserve 16 1,133,290,220 717,363,208
Assets Revaluation Reserve 17 332,015,432 342,076,506
Retained Earnings 18 884,674,751 801,089,800
Total Shareholders' Equity 15,315,063,550 13,258,074,806
Total Liabilities and Shareholders' Equity 437,178,834,150 371,335,783,344
 FIRST SECURITY ISLAMI BANK LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2019

31.12.2019 31.12.2018
Notes
BDT BDT

OFF- BALANCE SHEET ITEMS

Contingent Liabilities

Acceptances and Endorsements 39,186,031,752 33,912,435,831

Letters of Guarantee 20 7,097,043,865 6,967,881,651
Irrevocable Letters of Credit 21 6,755,906,782 4,778,147,872
Bills for Collection 22 1,767,740,201 1,438,758,345
Other Contingent Liabilities - -
Total 54,806,722,600 47,097,223,699

Other Commitments

Documentary Credits And Short Term Trade Related Transactions - -

Forward Assets Purchased And Forward Deposits Placed - -
Undrawn Note Issuance And Revolving Underwriting Facilities - -
Undrawn Formal Standby Facilities, Credit Lines And Other Commitments - -
Total - -

Total Off -Balance Sheet Items Including Contingent Liabilities 54,806,722,600 47,097,223,699

The annexed notes (1 to 54) and Annexure A & B form an integral part of these financial statements.

Managing Director Director Director Chairman

Independent Auditors' Report

As per annexed report of same date

Hoda Vasi Chowdhury & Co

Dhaka, 18 June 2020 Chartered Accountants
Signed By : Showkat Hossain, FCA
Senior Partner
 FIRST SECURITY ISLAMI BANK LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2019
31.12.2019 31.12.2018
Notes
BDT BDT

Investments Income 23 38,801,433,096 33,921,445,124

Profit Paid on Deposits 24 (28,887,423,967) (24,746,465,350)
Net Investment Income 9,914,009,129 9,174,979,774
Income from Investment in Shares and Securities 25 767,435,285 401,018,728
Commission, Exchange and Brokerage 26 884,760,657 777,337,268
Other Operating Income 27 642,147,642 664,717,024
2,294,343,584 1,843,073,020
Total Operating Income 12,208,352,713 11,018,052,794
Less: Operating Expenses
Salary and Allowances 28 3,660,058,766 3,185,639,104
Rent, Taxes, Insurances, Electricity etc. 29 719,248,395 623,875,410
Legal Expenses 30 9,217,035 12,417,028
Postage, Stamps, Telecommunication etc. 31 93,055,597 91,600,658
Stationery, Printings, Advertisements etc. 32 180,082,183 160,431,600
Managing Director's Salary and Fees 33 12,887,342 12,358,742
Directors' Fees & Expenses 34 1,562,800 2,076,984
Shariah Supervisory Committee's Fees & Expenses 35 220,000 167,200
Audit Fees 920,000 920,000
Depreciation & Repair of Bank's Assets 37 583,234,840 486,340,037
Zakat Expenses 98,347,681 88,149,726
Other Expenses 38 942,956,702 1,037,796,145
Total Operating Expenses 6,301,791,341 5,701,772,634
Profit before Provision and Tax 5,906,561,372 5,316,280,160
Provisions for Investments including off-B/S items 13.2 1,887,580,857 2,222,560,965
Provisions for Diminution in Value of Investment in Shares 101,787,943 63,140,377
Provision for Other Assets - 91,168
Total Provisions 1,989,368,800 2,285,792,510
Total Profit before Taxes 3,917,192,572 3,030,487,650
Provision for Current Tax 1,956,594,583 1,594,884,048
Deferred Tax Income 39 (96,390,755) (150,795,071)
Total Provisions for Tax 1,860,203,828 1,444,088,977
Net Profit after Tax 2,056,988,743 1,586,398,673
Retained Earnings from Previous Year 801,089,800 724,401,308
2,858,078,543 2,310,799,981
Appropriations:
Statutory Reserve 783,438,514 606,097,530
Other Reserve 405,865,938 190,795,071
Bonus Share Issued 784,099,340 712,817,580
1,973,403,792 1,509,710,181
Retained Earnings Carried Forward 884,674,751 801,089,800

Earnings Per Share (EPS) 40 2.38 1.84

The annexed notes (1 to 54) and Annexure A & B form an integral part of these financial statements.

Managing Director Director Director Chairman

Hoda Vasi Chowdhury & Co

Chartered Accountants
Dhaka, 18 June 2020 Signed By : Showkat Hossain, FCA
Senior Partner
 FIRST SECURITY ISLAMI BANK LIMITED
CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2019

31.12.2019 31.12.2018
Notes
BDT BDT
A. Cash Flows from Operating Activities
Investment Income Receipt 39,379,419,731 33,450,915,127
Profit paid on Deposits (27,294,044,639) (23,874,743,758)
Dividend Receipts 25,782,146 11,032,249
Fees & Commission Receipt 884,760,657 777,337,268
Payment to Employees (3,672,946,108) (3,197,997,846)
Payment to Suppliers (290,820,634) (252,900,850)
Income Tax Paid (1,219,457,592) (1,222,498,688)
Receipts from Other Operating Activities 43 642,147,642 654,164,412
Payment for Other Operating Activities 44 (1,767,180,529) (1,768,795,925)
Operating Profit before changes in Operating Assets & Liabilities 6,687,660,674 4,576,511,989
Increase/(Decrease) in Operating Assets & Liabilities
(Increase)/decrease in Investments to Customers (50,807,351,729) (37,716,030,382)
(Increase)/decrease of Other Assets 45 (730,960,977) (755,539,396)
(Increase)/decrease of Placement with Banks & other Financial Institutions - -
Increase/(decrease) of Deposits Received from Customers 55,006,484,633 20,389,598,060
Increase/(decrease) of Placement from Banks & other Financial Institutions (4,329,316,400) 8,056,158,698
Increase/(decrease) of Other Liabilities 46 291,649,788 1,178,128,241
Cash Generated from Operating Assets & Liabilities (569,494,686) (8,847,684,779)

Net Cash Inflow/(Outflow) from Operating Activities 6,118,165,988 (4,271,172,790)

B. Cash Flows from Investing Activities
(Purchase)/ Sale of Shares and Securities (1,545,961,599) (72,796,322)
Purchase of Property, Plant and Equipment (283,599,943) (348,910,777)
Sale of Property, Plant and Equipment 8,160,099 1,485,638
Net Cash Inflow/(Outflow) from Investing Activities (1,821,401,443) (420,221,461)

C. Cash Flows from Financing Activities

Receipt/(Payment) for Issuance of Mudaraba Subordinated Bond 6,638,000,000 (520,000,000)
Dividend Paid in Cash - -
Net Cash Inflow/(Outflow) from Financing Activities 6,638,000,000 (520,000,000)

D. Net Increase/(Decrease) of Cash & Cash Equivalents (A+B+C) 10,934,764,545 (5,211,394,251)

Effect of Exchange Rate Change on Cash & Cash Equivalents (2,894,519) -
E. Opening Cash & Cash Equivalents 20,602,035,743 25,813,429,994
F. Closing Cash & Cash Equivalents (D+E) 31,533,905,769 20,602,035,743
The above closing Cash and Cash Equivalents include:
Cash in Hand (Including Foreign Currencies) 2,296,717,472 1,873,791,145
Balance with Bangladesh Bank and its Agent Bank(s) and Other
29,237,188,297 18,728,244,598
Banks
31,533,905,769 20,602,035,743

The annexed notes (1 to 54) and Annexure A & B form an integral part of these financial statements.

Managing Director Director Director Chairman

Dhaka, 18 June 2020
 FIRST SECURITY ISLAMI BANK LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2019

Statutory Assets Reval. Retained

Paid-up Capital Other Reserve Total
Particulars Reserve Reserve Earnings
BDT BDT BDT BDT BDT BDT

Balance as on 01 January 2019 7,840,993,400 3,556,551,892 717,363,208 342,076,506 801,089,800 13,258,074,806

Changes in Accounting Policy - - - - - -
Restated Balance 7,840,993,400 3,556,551,892 717,363,208 342,076,506 801,089,800 13,258,074,806
Net Profit for the Year - - - - 2,056,988,743 2,056,988,743
Cash Dividend - - - - - -
Bonus Share Issued 784,099,340 - - - (784,099,340) -
Transfer to Statutory Reserve - 783,438,514 - - (783,438,514) -
Transfer to Other Reserve - - 405,865,938 - (405,865,938) -
Revaluation Reserve transfer to Other Reserve - - 10,061,074 (10,061,074) - -
Total Shareholders' Equity as on 31
8,625,092,740 4,339,990,406 1,133,290,220 332,015,432 884,674,751 15,315,063,550
December 2019

FOR THE YEAR ENDED 31 DECEMBER 2018

Balance as on 01 January 2018 7,128,175,820 2,950,454,362 516,507,063 352,137,580 724,401,308 11,671,676,133
Net Profit for the Year - - - - 1,586,398,673 1,586,398,673
Cash Dividend - - - - - -
Bonus Share Issued 712,817,580 - - - (712,817,580) -
Transfer to Statutory Reserve - 606,097,530 - - (606,097,530) -
Transfer to Other Reserve - - 190,795,071 - (190,795,071) -
Revaluation Reserve transfer to Other Reserve - - 10,061,074 (10,061,074) - -
Total Shareholders' Equity as on 31
7,840,993,400 3,556,551,892 717,363,208 342,076,506 801,089,800 13,258,074,806
December 2018

The annexed notes (1 to 54) and Annexure A & B form an integral part of these financial statements.

Managing Director Director Director Chairman

Dhaka, 18 June 2020