Social Islami Bank PLC.

Audit Report and Audited Financial Statements

For the year ended 31 December 2023

Khan
Wahab
Shafique
KW Rah man & Co.
CHARTERED ACCOUNTANTS
SINCE' 1968
 Vwlytk4 qtrq taW risit . 7 Khan
,
KAZI ZAIIIR KILAN & CO. E KOWA', Wahab
Shafique
mgiworldwide •
Chartered Accountants
Pracke Since 1980
KW SiNCE
Rahman &
1968 4:41. v. 3=Jr^ng r

Home Town Apartments (Flat-C, Level - 15), 87, New Eskaton Road, Dhaka 1000. Rupali Bima 13haban (Y.& 6* Floor), 07, Rajuk Avenue, Motijheel, Dhaka - 1000.

Independent Auditor's Report

To the Shareholders of Social Islami Bank PLC
Report on the Audit of the consolidated and separate Financial Statements

Opinion
We have audited the consolidated financial statements of Social Islami Bank PLC and its
subsidiaries (the "Group") as well as the separate financial statements of Social Islami Bank
PLC (the "Bank"), which comprise the consolidated and separate balance sheets as at 31
December 2023 and the consolidated and separate profit and loss accounts, consolidated
and separate statements of changes in equity and consolidated and separate cash flow
statements for the year then ended, and notes to the consolidated and separate financial
statements, including a summary of significant accounting policies and other explanatory
information.

In our opinion, the accompanying consolidated financial statements of the Group and
separate financial statements of the Bank give a true and fair view of the consolidated
financial position of the Group and the separate financial position of the Bank as at 31
December 2023 and of its consolidated and separate financial performance and its
consolidated and separate cash flows for the year then ended in accordance with
International Financial Reporting Standards (IFRSs) as explained in note 2 and comply with
the Bank Company Act, 1991 (as amended up to date), the Companies Act 1994, the Rules
and Regulations issued by the Bangladesh Bank, the Rules and Regulations issued by the
Bangladesh Securities & Exchange Commission (BSEC) and other applicable Laws and
Regulations.

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 the audit of the consolidated and separate financial statements for the year
ended 31 December 2023. These matters were addressed in the context of the audit of the
consolidated and separate financial statements, and in forming the Auditors' opinion
thereon, and we do not provide a separate opinion on these matters. For each matter below
our description of how our audit addressed the matter is provided in that context.

Description of key audit matters Our response to key audit matters

Measurement of provision for Investments
The process for estimating the provision for We tested the design and operating
Investments portfolio associated with credit effectiveness of key controls focusing on the
risk is significant, judgmental and complex. following:
While estimating such provision certain • Credit monitoring and provisioning
judgmental factors need to be considered process;
including: • Identification of loss events, including
• Future business performance of the early warning and default warning
borrower; indicators; and
• Key assumptions relating to further • Review of quarterly Classification of
business performance of the Investment;
borrower; • Follow Bangladesh Bank's circular and
• Market value of the collateral; guidelines.
• Ability to repossess collateral; and
• Recovery rates etc. Our substantive procedures in relation to
the provision for Investments portfolio
Furthermore, these provisions are comprised the following:
processed manually using the voluminous
data extracted from the IT system of the • Reviewed general and specific provisions
Bank and following the instructions of kept by the bank;
Bangladesh Bank (the central bank of • Assessed the methodologies on which
Bangladesh) issued from time to time. the provision amounts based, checked
the calculations of the provisions and
Due to high level of judgement involved tested the completeness and accuracy
and using some manual process in of the underlying information
estimating the provision for Investments, • Assessed the appropriateness and
we considered this to be a key audit matter. presentation of disclosures against
relevant accounting standards and
For individually assessed provisions, the Bangladesh Bank guidelines.
measurement of the provision may be • Finally, compared the amount of
dependent on the valuation of collateral, provision requirement as determined by
estimates of exit values and the timing of Bangladesh Bank to the actual amount
cash flows. of provision maintained.

Provision measurement is primarily

dependent upon key assumptions relating
to probability of default, ability to repossess
collateral and recovery rates.

At the year end the Bank reported total

gross Investments of Taka 360,816 million
(2022: Taka 342,944 million) and total
provision for Investments excluding off
balance sheet item Taka 12,814 million
(2022: Taka 12,929 million). We have
focused on the following significant
judgments and estimates which could give
rise to material misstatement or
management bias:

Completeness and timing of recognition

of loss events in accordance with
criteria set out in BRPD circular no.-14,
dated-23 September 2012, BRPD
circular no.-03, dated-21 April 2019,
BRPD circular no.-17, dated-28
September 2020, BRPD circular no.-56,
dated-10 December 2020, BRPD
Circulars no.-3, dated-31 January 2021,
BRPD Circulars no.-5, dated-24 March
2021 BRPD circular no.-51, dated-29
December 2021 and BRPD Circular
letter No.-53, dated-30 December 2021
and BRPD Circular no.-51 dated 18
December 2022 and BRPD Circular No.-
14, dated-22 June 2022.
See note no 7 and 14.1 to the financial statements
Recognition of investment income
Recognition of investment income has We tested the design and operating
significant and wide influence on financial effectiveness of key controls over
statements. Recognition and measurement recognition and measurement of
of investment income has involvement of investment income on Investments. We
complex IT environment. We identify performed test of operating effectiveness
recognition of investment income from on automated control in place to measure
Investments as a key audit matter because and recognise investment income. We have
this is one of the key performance also performed substantive procedure to
indicators of the Bank and therefore there check whether investment income is
is an inherent risk of fraud and error in recognised completely and accurately. We
recognition of investment income by assessed the appropriateness and
management to meet specific targets or presentation of disclosure against relevant
expectations. accounting standards and Bangladesh Bank
guidelines.
The bank has reported investment income
of Taka 25,244 million which is 16.63% Finally, we also conducted substantive
higher than the previous year (2022: Taka analytical procedures to asses
21,644 million). As such, EPS has been reasonableness of investment income
increased 5.32% as compared to last year. recognized during the year with reference
to the product wise outstanding investment
The Bank has reported Taka 2,797 million as balances.
commission, exchange and brokerage

3
which is 26.45% lower than previous year We performed several analytical and
(2022: Taka 3,803 million), substantive procedures to check whether
the calculations relating to the investment
Accordingly, this has been considered as income, profit paid on deposits and
key audit matter. borrowings etc. and the EPS are accurate or
not.
See note no 21 & 24 to the financial statements
Liquidity concern and significant Increase in Borrowing from Bangladesh Bank
At several point of time in the reporting Our audit procedures in connection of the
year, the bank encountered multiple borrowing are as follows:
instances of liquidity challenges and non-
maintenance of CRR and SLR. • Assessed the effectiveness of the
bank's management of liquidity risk
It resulted the bank to seek external in light of the current economic
financing as borrowing from Bangladesh conditions and market volatility, as
Bank. The year ended balance has come to well as any changes in the bank's
Taka 43,280 million (2022: Taka 30,000 liquidity profile, such as changes in
million) which includes Taka 2,750 million funding sources etc.
as Bangladesh Government Islamic Bond,
Taka 12,430 million as Islami Bank liquidity • Assessed whether the borrowing has
facility, Taka 27,000 million as special been appropriately disclosed in the
liquidity facility fund and Taka 1,100 million financial statements.
as Borrowing from other bank FC. The
profit rate of all of the borrowings is • Checked ledger and other documents
determined under Mudaraba Principle, provided by regulator on sample
basis as part of audit procedure.
The consequence of the liquidity challenge
and increase in the borrowing from the
central bank and the associated risk with it
have made us determine it as key audit
matter.
See note no 10 to the financial statements
Significant Foreign Exchange Income
During the year under audit, the bank has Our audit procedures in connection of this
recorded a significant foreign exchange are as follows:
Income i.e., Taka 2,165 million (2022: Taka
3,051 million). • Assessed the adequacy of the bank's
accounting policies and procedures
In the case of the bank, this is largely due for recognizing and measuring
to external market forces, mostly the rise exchange gains and losses, to
in the exchange rate of the USD has evaluate whether the bank's
resulted in such exchange gains, accounting policies and procedures
comply with applicable accounting
Since, this exchange gains is a significant standards and industry best practices.
financial matter that has an impact on the
bank's profitability and earnings per share

4
 (EPS), we considered the matter as key • Conducted substantive procedure to
audit matter. assess whether the exchange gains
are properly disclosed and explained.

• Evaluated the materiality and

sustainability of the exchange gain,
particularly in relation to the bank's
overall financial performance and
earnings per share (EPS).
See note no 24 to the financial statements
Impairment assessment of unquoted investment
In the absence of a quoted price in an We have assessed the process and controls
active market, the fair value of unquoted put in place by the company to ensure all
shares and bonds, especially any major investment decisions are undertaken
impairment is calculated using valuation through a proper due diligence process.
techniques which may take into
consideration direct or indirect We tested a sample of investment valuation
unobservable market data and hence as at 31 December 2023 and compared our
require an elevated level of judgment. results to the recorded value.

Finally, we assessed the appropriateness and

presentation of disclosures against relevant
accounting standards and Bangladesh Bank
guidelines.
See note no 7 to the financial statements
Investments
Investments are the main element of We tested the design and operating
financial statements of the Bank. Income ofeffectiveness of key controls focusing on
the Bank is mainly dependent on the credit appraisal, investment disbursement
portfolio of Investments. Management procedures and monitoring process as well
performance is highly dependent on the as the percentage of non-performing
target achievement of Investments. Investments. We have performed procedure
Investment disbursement requires robust to check whether the Bank has ensured
documentation followed by approval from appropriate documentation as per
appropriate level of authority. We have Bangladesh Bank regulations and the Bank's
identified Investments as key audit matter policy before disbursement of Investments.
In addition, we have performed procedure
because there is an inherent risk of fraud in
disbursement of Investments to check whether the Investments is
by
management to meet specific targets or recorded completely and accurately and
expectations. that are existed at the reporting date.
Furthermore, we have assessed the
In addition, the bank reported non- appropriateness of disclosure against
performing investment including SME of Bangladesh Bank guidelines.
Taka 17,289 million, 4.93% higher than the
previous year (2022: Taka 16,477 million),
which is 4.79% of the total Investments.

ice-kt\
5
See note no 7.7 to the financial statements
Implementation of IFRS 16 Leases
IFRS 16 modifies the accounting treatment In responding to the identified key audit
of operating lease at inception, with the matter, we complete the following audit
recognition of a right of use (ROU) on the procedures;
list asset and of a liability for the lease
payments over the lease contract term. Assessed the design and implementation
With respect to operating leases of of key controls pertaining to the
premises used by the Bank, at inception of determination of the IFRS 16 Leases
the lease, the lessor receives a right of impact on the financial statements of the
using the premises, in exchange of a lease Bank;
debt, using an implicit discount rate.
Assessed the appropriateness of the
Our key audit matter was focused on all discount rates applied in determining
leasing arrangements within the scope of lease liabilities;
IFRS 16 are identified and appropriately
included in the calculation of the Verified the accuracy of the underlying
transitional impact and specific lease data by agreeing to original contract
assumptions applied to determine the and checked the accuracy of the IFRS 16
discount rates for lease are inappropriate. calculations through recalculation of the
expected IFRS 16 adjustment; and
Assessed whether the disclosures within
the financial statements are appropriate
in light of the requirements of IFRS.

See note no 14 to the financial statements

Measurement of deferred tax liabilities (DTL)
At the year end of 31 December 2023, the We obtained an understanding, evaluated
Bank reported total deferred tax liabilities the design and tested the operational
of Taka 468 million (31 December 2022: effectiveness of the Bank's key controls over
Taka 472 million) and deferred tax the recognition and measurement of DTLs
expenses of Taka 4 million (31 December and the assumptions used.
2022 Taka 15 million) of deferred tax
expense. We also assessed the completeness and
accuracy of the data used. We involved tax
Significant judgment is required in relation specialists to assess key assumptions,
to deferred tax assets, as their controls, recognition and measurement of
recoverability is dependent on forecasts of DTL's. Finally assessed the appropriateness
future profitability over a number of years. and presentation of disclosures against IAS
12 Income Tax.
Accordingly, this area has been considered
as key audit matter.

See note no 15, 38 to the financial statements

6
 IT Systems and controls
Our audit procedures have a focus on IT We tested the design and operating
systems and controls due to the pervasive effectiveness of the Bank's IT access
nature and complexity of the IT controls over the information systems that
environment, the large volume of are critical to financial reporting.
transactions processed in numerous
locations daily and the reliance on We tested IT general controls (logical
automated and IT dependent manual access, changes management and aspects of
controls. IT operational controls). This included
testing that requests for access to systems
Our areas of audit focus included user were appropriately reviewed and
access management, developer access to authorized.
the production environment and changes
to the IT environment. These are key to We tested the Bank's periodic review of
ensuring IT dependent and application- access rights and reviewed requests of
based controls are operating effectively, changes to systems for appropriate
approval and authorization.

We considered the control environment

relating to various interfaces, configuration
and other application layer controls
identified as key to our audit.

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 other
information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the consolidated and separate 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
consolidated and separate financial statements or our knowledge obtained in the audit, or
otherwise appears to be materially misstated.

When read the annual report, if we conclude that there is a material misstatement therein,
we are required to communicate the matter to those charged with governance.

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

7
accordance with IFRSs as explained in note 2, 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 up to date), 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 auditors' 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 judgment and

maintain professional scepticism 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.

8
 • 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 auditors' 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
auditors' 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 bank 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 year 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 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 (as amended up to date), the Securities and
Exchange Rules, 2020, the Bank Companies Act, 1991 (as amended up to date) 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 do
verification thereof;

9
(ii) to the extent noted during the course of our audit work performed on the basis
stated under the Auditor's Responsibilities for the Audit of the consolidated and
separate Financial Statements 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 and the Bank 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) consolidated financial statements of the Bank's subsidiaries namely, SIBL

Securities PLC and SIBL Investment PLC was audited by Kazi Zahir Khan & co. and
given Unmodified Opinion and has been consolidated in the consolidated financial
statements of the group.

(iv) in our opinion, proper books of account as required by law have been kept by the
Group and Bank so far as it appeared from our examination of those books;

(\ ) the records and statements submitted by the branches have been properly
maintained and consolidated in the financial statements;

(1,i) 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;

(‘iii) 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) provisions have been made for Investment and other based on the financial
statements for the year ended on 31 December 2023 which are in our opinion,
doubtful of recovery as per Bangladesh Bank approval given vide letter no "DBI-
7/4(2)/2024-334",dated-08 April 2024, and letter no "DOS (CAMS) 1157 / 41
(DIVIDEND) / 2024-3.691", dated-24 April 2024.

(x) the information and explanations required by us have been received and found
satisfactory.

10
 (xi) we have reviewed over 80% of the Risk Weighted Assets (RWA) of the Bank and
spent over 9,650 person hours; and

(xii) Capital to Risk Weighted Assets Ratio (CRAR) as required by Bangladesh Bank has
been maintained at the year end.

Md. Nur ain Kh FCA Mohan,xfnad Shaheed FCA,

Enrolme 0240 Enrolment no. 1016
Managin P t Senior Partner
Kazi Zahir Khan & Co. Khan Wahab Shafique Rahman & Co.
Chartered Accountants Chartered Accountants
DVC No. 240424024056147119 DVC No.
24 0 4 2 4 1 016A839 8 593
Place of Issue: Dhaka, Boraltede,56

Date of Issue:
24 APR 2024

11
 SOCIAL ISLAMI BANK PLC. AND ITS SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
As at 31 December 2023
Particulars toN_
e(s) 31.12.2023 31.12.2022
Taka Taka
PROPERTY AND ASSETS
Cash in hand
Cash in hand (including foreign currencies) 3(a) 4,897,780,861 4,836,155,932
Balance with Bangladesh Bank & its Agent Banks
(including foreign currencies) 3.1 29,260,845,550 22,086,752,023
34,158,626,411 26,922,907,955
Balance with other Banks and Financial Institutions
In Bangladesh 4(a) 4,347,783,482 3,226,099,234
Outside Bangladesh 4.2 1,997,889,368 2,520,897,414
6,345,672,850 5,746,996,648

Placement with Banks and other Financial Institutions 5 9,961,293,194 6,822,973,794

Investments in shares and securities 6(a)
Government 14,789,330,000 14,789,330,000
Others 11,046,866,560 9,306,243,627
25,836,196,560 24,095,573,627
Investments 7 (a)
General investment etc. 348,533,276,028 325,968,535,809
Bills purchased and discounted 11,463,702,243 16,185,621,694
359,996,978,271 342,154,157,503
Fixed assets including premises 8(a) 4,342,947,247 4,413,627,223
Other assets 9(a) 35,800,144,916 30,200,499,189
Non Banking assets
Total assets 476,441,859,449 440,356,735,939
LIABILITIES AND CAPITAL
Liabilities
Placement from Banks & other Financial Institutions 10 43,280,000,000 30,000,000,000
Deposits and other accounts 11
Mudaraba savings deposits 41,914,376,057 40,084,046,928
Mudaraba term deposits 147,554,326,209 168,510,358,684
Other mudaraba deposits 85,178,611,324 79,636,478,408
Al-wadeeah current and other deposit accounts 11.2(a) 70,827,070,860 45,280,664,632
Bills payable 11.3 10,920,649,729 6,327,507,930
Cash waqf fund 455,010,127 415,930,983
356,850,044,306 340,254,987,565
Bond
SIBL mudaraba subordinated bond 12 8,000,000,000 4,800,000,000
SIBL mudaraba perpetual bond 13 5,000,000,000 5,000,000,000
13,000,000,000 9,800,000,000
Other liabilities 14(a) 40,362,003,460 38,942,445,231
Deferred tax liabilities/ (assets) 15 (a) 468,219,260 472,091,718
Total liabilities 453,960,267,026 419,469,524,515
Capital/shareholders' equity
Paid-up capital 16.2 10,858,620,000 10,341,542,860
Statutory reserve 17 9,420,732,990 8,386,157,907
General Reserve 17(a) 13,938,397 13,938,397
Others Reserve 19,267,783 16,149,999
Revaluation reserve on fixed assets 18 529,838,298 543,259,152
Retained earnings 19(a) 1,639,193,057 1,586,161,206
Total shareholders' equity of parent Company, SIBPLC 22,481,590,525 20,887,209,521
Non controlling interest 19(b) 1,898 1,903
Total shareholders' equity of parent Company, SIBPLC with
non controlling interest 22,481,592,423 20,887,211,424
Total liabilities and shareholders' equity of the group 476,441,859,449 440,356,735,939
Vq\C
 31.12.2023 31.12.2022
Particulars Note(s) Taka Taka

CONTINGENT LIABILITIES

Acceptances and endorsements 20.1 40,231,161,067 43,467,019,251

Irrevocable letters of credit (including back to back bills) 20.2 18,212,895,400 16,835,039,038
Letters of guarantee 20.3 9,657,579,979 8,965,901,893
Bills for collection 20.4 8,756,058,669 8,492,000,669
Other contingent liabilities 20.5
Total 76,857,695,115 77,759,960,851

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 76,857,695,115 77,759,960,851

Consolidated Net Asset Value per share (CNAV/share) (Prior

39(i) 20.70 19.24
year restated)

Annexed notes (Ito 51) form an integral part of these financial statements

Director DLor Managing I iro'tor & CEO

Signed as per our report of same date

Md. N I al an FCA Moh mad Shaheed FCA, FCMA

Enrollm tni 240 Enr lment no. 1016
Managing Partner Senior Partner
Kazi Zahir Khan & Co. Khan Wahab Shafique Rahman & Co.
Chartered Accot2taiats Chartered Accountants
DVC No.
4-u4240240AS614749 DVC No.
Dhaka, Bangladesh
2 4 0 4 2 4 1 01\N,AF1 985 9 3
Date 24 OR 2024 qz.
3. Atfi iRititS
2 Ak,„,
 SOCIAL ISLAMI BANK PLC. AND ITS SUBSIDIARIES
CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
Particulars Note(s) 31.12.2023 31.12.2022
Taka Taka
Investment income 21(a) 25,370,034,072 21,760,902,836
Profit paid on deposits 22(a) 17,750,531,058 15,720,427,535
Net investment income 7,619,503,014 6,040,475,301
Income from investment in shares/securities 23(a) 1,464,020,425 1,360,253,823
Commission, exchange and brokerage 24(a) 2,856,750,666 3,909,875,163
Other operating income 25(a) 826,708,624 889,273,628
5,147,479,715 6,159,402,614
Total operating income 12,766,982,729 12,199,877,915
Salaries and allowances 26(a) 4,765,703,734 4,392,570,297
Rent, taxes, insurances, electricity etc. 27(a) 709,906,879 585,047,123
Legal expenses 28 13,491,107 9,203,342
Postage, stamps, telecommunication etc. 29(a) 9,121,889 7,878,063
Stationery, printings, advertisements etc. 30(a) 161,651,809 120,297,660
Managing Director's salary and allowances 31 18,839,996 17,121,670
Directors' fees & expenses 32(a) 4,437,188 4,113,162
Shariah supervisory committee's fees & expenses 33 867,376 444,666
Auditors' fees 1,207,500 977,500
Charges on investment losses
Depreciation & repair of Bank's assets 34(a) 634,887,580 639,036,460
Zakat expenses 216,362,874 196,215,836
Other expenses 35(a) 1,416,474,836 1,459,047,243
Total operating expenses 7,952,952,768 7,431,953,022
Profit/(Loss) before provision 4,814,029,961 4,767,924,893
Provision for investments 736,036,727 671,509,077
Other provisions 36(a) 125,189,356 216,691,867
Total provision 37(a) 861,226,083 888,200,944
Total profit/(loss) before income taxes 3,952,803,878 3,879,723,949
Provision for taxation 38(a) 1,415,771,467 1,495,107,426
Current tax 1,411,720,114 1,480,430,446
Deferred tax 4,051,353 14,676,980
Net profit/(loss) after taxation 2,537,032,411 2,384,616,523
Appropriations
Statutory reserve 1,034,575,083 780,892,933
Start up Fund 25,641,301 24,297,828
Coupon/dividend on perpetual bond 410,974,515 393,500,011
1,471,190,899 1,198,690,772
Attributable to:
Equity holders' of the Bank 1,065,841,469 1,185,925,725
Non controlling interest 43 26
2,537,032,411 2,384,616,523
Consolidated Earning Per Share (CEPS) (Prior year 1.90
39(a) 1.96
restated)
xed ptes (Ito 51) form an integral part of these financial statements
'AG -as'
v /
if rector a aging Dire to CEO
Signed as per our report of same date
Md. Nuru Khan FCA Moha as Shaheed FCA, FCMA
Enrollment 0 40 Enr lment no. 1016
Managing Partne Senior Partner
Kazi Zahir Khan & Co. Khan Wahab Shafique Rahman & Co.
Chartered Accountants Chartered Accountants
DVC No. 2 404240240AS614749 FIQO
DVC No.
Dhaka, Bangladesh
240 4 24 1 0 dAb39 8 5 9 3
Date: 24 Alik 2024 \/-1Kg 74.kscmYir
 SOCIAL ISLAM! BANK PLC. AND ITS SUBSIDIARIES
CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
31.12.2023 31.12.2022
Particulars Note(s) Taka Taka

Cash Flow from operating activities

Investment Income receipt 40(a) 25,150,538,778 21,516,207,626
Profit paid on deposits (16,564,579,648) (14,527,851,384)
Income /dividend receipt from Investments in Shares and Securities 1,464,020,425 1,360,253,823
Fees & commission receipt 691,546,810 859,266,218
Cash payment to employees (4,784,543,730) (4,409,691,967)
Cash payment to suppliers (170,773,698) (128,175,723)
Income tax paid (1,604,235,459) (1,325,246,974)
Receipts from other operating activities 41(a) 2,861,876,624 3,731,510,739
Payments for other operating activities 42(a) (2,486,721,665) (2,374,018,734)
Operating profit before changes in operating assets and liabilities 43(a) 4,557,128,436 4,702,253,623
Increase/Decrease in operating assets and liabilities
Statutory deposits
Net trading securities (1,740,622,933) 5,293,382,220
Investments to other Banks
Investment to customers (17,842,820,767) (30,170,336,975)
Other assets 44(a) (3,775,914,975) (8,397,725,571)
Placement from banks & other financial institutions 13,280,000,000 30,000,000,000
Deposits from other Banks (3,722,253,752) 13,043,068,092
Deposits received from customers 19,131,359,083 (14,379,469,859)
Other liabilities on account of customers
Trading liabilities
Other liabilities 45(a) (875,911,532) (1,174,620,334)
Sub Total 4,453,835,124 (5,785,702,427)
A. Net Cash flow from operating activities 9,010,963,560 (1,083,448,804)
Cash flows from investing activities
Proceeds from sale of securities
Payment for purchases of securities
Proceeds from sale of fixed assets
Purchases of property, plant & equipment's (440,233,700) (672,336,750)
Purchase/Sale of subsidiaries
B. Net Cash flows from investing activities (440,233,700) (672,336,750)
Cash flows from financing activities
Receipts from issue of debt instruments
SIBL Mudaraba Subordinated Bond 3,200,000,000 (800,000,000)
SIBL mudaraba perpetual bond
Receipts from issue of right shares/ordinary share
Coupon/ dividend on perpetual bond (410,974,515) (393,500,011)
Dividend paid in cash (517,077,143) (492,454,422)
C. Net Cash flow from financing activities 2,271,948,342 (1,685,954,433)
D. Net increase/(decrease) in cash & cash equivalents (A+B+C) 10,842,678,202 (3,441,739,987)
E. Effects of exchange rate changes on cash & cash equivalents 130,035,856 208,371,834
F. Cash and cash equivalents at the beginning of the year 39,492,878,397 42,726,246,549
G. Cash and cash equivalents at the end of the year (D+E+F) 46(a) 50,465,592,455 39,492,878,397

Consolidated Net Operating Cash Flow Per Share (NOCFPS) 39(ii) 8.30 (1.00)
(prior year restated)
Annexed notes ( 1 to 51) form an integral part of these financial statements

rector Mana ng Di 'ctor & CEO

Dhaka, Bangladesh
Date:
2 4 APR 2024
\INZKe 4
 I BANK PLC AND ITS SUBSIDIARIES

(Amount in Taka)

Share a
Asset Non
Statutory Other Retained Total
Paid-up Capital Premium Revaluation Controlling

0 g
Particulars

4+
6 >
Reserve Reserves Earnings
Account Reserve Interest
2
N
O's

00
A
I.
4

1...
20,887,211,424 1

IMI
40 ..ir
0.
1,586,161,206

ON
.
543,259,152

en
IBalance as at 01 January 2023 8,386,157,907
!Changes
_ in Accounting Policy
IRestated Balance
!Surplus / (Deficit) on account of Revaluation of Properties
ISurnlus / (Deficit) on account of Revaluation of Investment
!Currency
_ translation Difference
!Met inrin nnr1 Incepc nnt rernani7esi in the Income Statement
N

N
N
m
00

WI.

2$37,032,411_1
en
I m.
Cl.

INet nrofit for the year

(25,641,301)j

,
Start-un fund for the year
(410,974,515)1

,,
(410,974,515)

0
=
"0

6 -a
...6
R.
1) (..)g
.;
N
VI

r•
co

vr

,...;
.....,
en
WI
ct

...•
00
.......

. 1
NW
I •A ralmnriatinn made Amino the year 1,034,575,083
Dividend:
c

n
n
In
.1

F.-
o.

r:
.4

gi.
,..,

IA
e•••••
F.-

—
.4.

0.

I C'ech Tlivirlarts-1
n
I

0
r-:

.
IP.
•re

kr1
1

, ,
r-
......, ,..,

..)
c,

t--
...
r:
cl

.,,„
8
1, cci
,1 .1
C.: 0
I

N
.1.
— ..ri

el
en
00.

..r.
el:

.......

0.1

liransferred to retained earnings 7,923,811 _ 7,923,811 1

ansferred from deffered Tax
I
a

0
.I

0
110

.
.. .

22,481,592,42k1
,—,

'40
00

0.

NN

.
c4,

en
im
529,838,298

irs.
liotal group shareholders' equity as on 31 December 2023 10,858,620,000
I. I.
ei

0
r ,r
A

I
CI%
NI

0000
CCI K.

0. 0.

v.

.
00 00

N IN
1.1 en

.10
e4
ok
CS 0/1
L. 1,639,193,057

es..
10,858,620,000
213,113,729 I
11.—ess: Adius.trnent in CET-1 Capital
4,683,049,567 I

;
;
0fteZZIP10109Z
Notal Eligible Tier I Capital
N
VI
P. §
.

nr
§Ma

rAdd: Others (As per RBCA Guideline of BB)

--

11
m rot .rt
tel lei IA

ei er
••• V) 00
•• .t. P.... . 1...

-
rTotal eligible capipras on 31 December 2023
ed notes ( 1 to 51) egral part of these financial statements
o
 Asset Non
Share Retained

t'

a
General Other Controlling Total
Paid-up Capital Premium Revaluation

.3 t
Particulars Earnings

as 1
V
Reserves

z.... Ix
Reserves Reserve Interest
Account
10=(2 to 9)

va

IA

‘r
1

r
en

19,397,070,236

IN 4t
X

--
NI
1,363,252,358

.1Ir
8,500,000

%es
Balance as at 01 January 2022 9,849,088,440 7,605,264,974
Changes in Accounting Policy

i
I I

Restated Balance

I
Surplus / (Deficit) on account of Revaluation of Properties
s

. . . .
I
Surplus / (Deficit) on account of Revaluation of Investment
Currency translation difference . . I

111
0

Net gain and losses not recognized in the Income Statement

ei
7!
v•I

csi

.
'4..

el,

•
2,384,616,497
I,

Net nrnfit fnr the year

V
NI el
fel 00

Os

ori. e4
IN

N..

(24,297,828)
Start-up fund for the year
••••
...4

0%
0%

0)
••••/ Cek
s I sar) 0st .-.1
VW

en
0

Coupon/dividend on perpetual bond

r:
c Os 0,
Os

i
3

-4 en

.
CI al

cr.
cr.
..., ....0

a.

.
es]
a^

en

I as
00

r--
0
.0
en
cl
Appropriation made during the year
e
"..

St
esII

Dividend:
.0.

I
.4.

,--.

,
Cash Dividend
s

.
(492,454,420)

.
Bonus shares 492,454,420
N

en

r--
al

Troncferrert tn retained earnings

0
s 00
14
...,
ais
40.,..

8,126,987
Transferred from deffered Tax
*

20,887,211,4Y41
fl.

543,259,152 1,586,161,205
IN

10,341,542,860 8,386,157,907 16,149,999

0
0

N
N

Total group shareholders' equity as on 31 December 2022 Ala .2.V/ 0111 '1•71
C" 1
I.

en en

...I ..

1,586,161,205
iIII In
tn
el IN

co

4...1

v
co fl.

a
el
N

CET 1 Capital Under Basel III: i

Less: Adjustment in CET-1 Capital
en 0% It

Add: S1BL Mudaraba Perpetual bond (AT-1 Capital)

N- Ws 0%
r --- Os 00

1`.. .-.. se

r-... —:.

. 0011
".1. .".• Cil

Total Eligible Tier [Capital

tn
en

... . . 44 00

---------------------------
0

AAA nrnvicinn far unclassified investment

.7 A IA en

II
a; es, .-• N 0r
,C
c
'C

i iii

.AAA- CIRI Uneharsaha Sultordinated _Bond cnb`2n7` 29 I

IV L &VW V77 V I
Add: Others (As per RBCA Guideline of BB)
11

Total Tier II Capital

‘ C.
el
•-•0

T,f..I liaihlaTiar II ("mind tas ner RBCA guideline)

V) Os

‘0 CA
01 0%
e en

Os V'
as .4

en
.. S.
111.

!Total eligible capi3a1 as on 31 December 2022

111,

CZ
 SOCIAL ISLAMI BANK PLC
BALANCE SHEET
As at 31 December 2023

Particulars 31.12.2023 31.12.2022

Taka Taka
PROPERTY AND ASSETS
Cash in hand
Cash in hand (Including foreign currencies) 3 4,897,399,344 4,835,583,834
Balance with Bangladesh Bank & its Agent Banks
(Including foreign currencies) 3.1 29,260,845,550 22,086,752,023
34,158,244,894 26,922,335,857
Balance with other Banks and Financial Institutions 4

In Bangladesh 4,347,758,950 3,226,074,618

Outside Bangladesh 1,997,889,368 2,520,897,414
6,345,648,318 5,746,972,032

Placement with Banks & other Financial Institutions 5 9,961,293,194 6,822,973,794

Investments in shares & securities 6

Government 14,789,330,000 14,789,330,000
Others 10,554,390,324 8,877,927,163
25,343,720,324 23,667,257,163
Investments 7

General investments etc. 349,353,276,028 326,758,535,809

Bills purchased and discounted 11,463,702,243 16,185,621,694
360,816,978,271 342,944,157,503

Fixed assets including premises 8 4,332,920,158 4,400,288,555

Other assets 9 35,093,057,013 29,464,700,031
Non Banking assets
Total assets 476,051,862,172 439,968,684,936

LIABILITIES AND CAPITAL

Liabilities
Placement from Banks & other Financial Institutions 10 43,280,000,000 30,000,000,000

Deposits and other accounts 11

Mudaraba savings deposits 41,914,376,057 40,084,046,928

Mudaraba term deposits 147,554,326,209 168,510,358,684
Other mudaraba deposits 85,178,611,324 79,636,478,408
Al-wadeeah current & other deposit accounts 11.2 71,365,873,685 45,975,991,996
Bills payable 11.3 10,920,649,729 6,327,507,930
Cash waqf fund 455,010,127 415,930,983
357,388,847,131 340,950,314,928
Bond
SIBL mudaraba subordinated bond 12 8,000,000,000 4,800,000,000
SIBL mudaraba perpetual bond 13 5,000,000,000 5,000,000,000
13,000,000,000 9,800,000,000

Other liabilities 14 39,531,465,218 37,981,308,615

Deferred tax liabilities/ (assets) 15 468,107,529 471,979,987
Total liabilities 453,668,419,878 419,203,603,530
Capital/Shareholders' equity
Paid-up capital 16.2 10,858,620,000 10,341,542,860
Statutory reserve 17 9,420,732,990 8,386,157,907
Revaluation reserve on fixed assets 18 529,838,298 543,259,152
Retained earnings 19 1,574,251,006 1,494,121,487
Total shareholders' equity 20,765,081,406
Total liabilities & shareholders' equity 439,968,684,936

c
7
 31.12.2023 31.12.2022
_NLit_t(§) Taka Taka
Particulars

CONTINGENT LIABILITIES
20.1 40,231,161,067 43,467,019,251
Acceptances and Endorsements
20.2 18,212,895,400 16,835,039,038
Irrevocable Letters of Credit (including Back to Back Bills)
20.3 9,657,579,979 8,965,901,893
Letters of Guarantee
20.4 8,756,058,669 8,492,000,669
Bills for Collection
Other Contingent Liabilities 20.5
76,857,695,115 77,759,960,851
Total

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
76,857,695,115 77,759,960,851
Contingent Liabilities

39 (i) 20.61 19.12

Net Asset Value per share (NAV/share) (Prior year restated)

Annexed notes (1 to 51) form an integral part of these financial statements

Director Managing threcto & CEO

Signed as per our report of same date

han FCA Moha ad Shaheed FCA, FC

Md. Nur
Enrollmen Enroll4nent no. 1016
Managing Prt Senior Partner
Kazi Zahir Khan & Co. Khan Wahab Shafique Rahman & Co.
Chartered Accyrants_ Chartered Accountants
DVC No. u4z40240AS614749 DVC No.
Dhaka, Bangladesh
2. 4 0 4 2.4 1 016As39 8 5 9 3
Date: 24 APR 2024
k2ke
8
 SOCIAL ISLAMI BANK PLC
CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
31.12.2023 31.12.2022
Particulars Note(s) Taka Taka

Cash Flow from operating activities

40 25,024,523,952 21,399,098,015
Investment Income receipt
(16,491,171,797) (14,456,234,500)
Profit paid on deposits
1,481,632,839 1,407,929,007
Income /dividend receipt from Investments in Shares and Securities
632,290,327 753,116,234
Fees & commission receipt
(4,736,365,088) (4,364,898,347)
Cash payment to employees
(168,481,466) (126,089,593)
Cash payment to suppliers
(1,587,781,351) (1,300,415,312)
Income tax paid
41 2,861,296,694 3,730,355,577
Receipts from other operating activities
42 (2,466,441,946) (2,355,418,054)
Payments for other operating activities
Operating profit before changes in operating assets and liabilities 43 4,549,502,163 4,687,443,026
Increase/Decrease in operating assets and liabilities
Statutory deposits
(1,676,463,160) 5,490,277,042
Net trading securities
Investments to other Banks
Investment to customers (17,872,820,767) (30,170,336,975)
44 (3,821,080,338) (8,620,796,506)
Other assets
Placement from banks & other financial institutions 13,280,000,000 30,000,000,000
Deposits from other Banks (3,722,253,752) 13,043,068,092
Deposits received from customers 18,974,834,546 (14,946,393,567)
Other liabilities on account of customers
Trading liabilities
Other liabilities 45 (701,800,816) (572,790,316)
Sub Total 4,460,415,712 (5,776,972,230)
9,009,917,876 (1,089,529,203)
A. Net Cash flow from operating activities
Cash flows from investing activities
Proceeds from sale of securities
Payment for purchases of securities
Proceeds from sale of fixed assets
Purchases of property, plant & equipment's (438,997,351) (665,816,715)
Purchase/Sale of subsidiaries
B. Net Cash flows from investing activities (438,997,351) (665,816,715)
Cash flows from financing activities
Receipts from issue of debt instruments
SIBL Mudaraba Subordinated Bond 3,200,000,000 (800,000,000)
S1BL mudaraba perpetual bond
Receipts from issue of right shares/ordinary share
Coupon/ dividend on perpetual bond (410,974,515) (393,500,011)
Dividend paid in cash (517,077,143) (492,454,422)
C. Net Cash flow from financing activities 2,271,948,342 (1,685,954,433)
D. Net increase/(decrease) in cash & cash equivalents (A+B+C) 10,842,868,867 (3,441,300,352)
E. Effects of exchange rate changes on cash & cash equivalents 130,035,856 208,371,834
F. Cash and cash equivalents at the beginning of the year 39,492,281,683 42,725,210,201
G. Cash and cash equivalents at the end of the year (D+E+F) 46 50,465,186,406 39,492,281,683

Net Operating Cash Flow Per Share (NOCFPS) (prior year restated) 39(ii) 8.30 (1.00)

Annexed notes ( 1 to 51) form an integral part of these financial statements

irector D ector Mana

Dhaka, Bangladesh

Date: 24 Aeli zUZ4 10

142.14E
 SOCIAL ISLAM! BANK PLC.

Share Premium General / Other Asset Revaluation Total

Statutory Reserve Retained Earnings

a
rli
1.•

a
Paid-up Capital

.t.
Account Reserves Reserve

4 5 6 7 8=(2+3+4+5+6+ 7) I

....
2 3

.
10,341,542,860 8,386,157,907 543,259,152 1,494,121,487 20,765,11/31,4U0 I
!Balance as at 01 January 2023

1
.

)2-
No

s _a
w
; 44
•S

lo el
1 .5
,• 1
.
I

.
IRestated Balance
I

I Surnlus / (Deficit) on account of Revaluation of Properties

. .
ISurnliis / (Deficit) on account of Revaluation of Investment
!Currency translation Difference
'

.
Net gain and losses not recognized in the Income Statement
ON
VD

2,564,130,096
rg
st,
c.

. .
Net nrnfit for the year
,
0
3
ego

. .
e l.

—
en ••;1.
"....

u•i

el
.....

.......

[-Start-tin fund for the year

'0,

et
•—•

(410,974,515)
ICounon/diyidend on perpetual bond
c, .1.
00
e-,
on en

e•-• Is-

.--. en
c). '1. wl. VI
GI

1,034,575,083

i
;
,•
•I

L
'
rAnnronriation made during the year

I I ii

. 1,;
[--- • ------
01

,..
Ito
....
r-

N:.
en
t-••

t--
es.
."1.

.-.
‘1",
,......

......,

Cash dividend -
o

1(ot, t'LLch. s)
Bonus Shares 517,077,140
0
'I'

-- i
e•I

.--,

ri
el

o
I en

en
0..

ob.,

•4'..
vi

.....,

rTransferred to retained earnings

•—•
00
v., ,—.

e4
r-•
en

7,923,811
[Transferred
LL
from deffered Tax
(60) (60)
Prior year dividend income adjustment
ao

22,383 442 295

co
a'.
en
a+
IA

1,574,251,006
cici.

9,420,732,990

...)
v.,1
s
as.
l shareholders' equity as on 31 December 2023
et '

[Tota 1,574,251,006 21,853,603,996

s
at ce

pil e.'
0000
SS

.4
9,420,732,990

v l
c.:,
c, 00.
-
1CET 1 Canital Under Basel HI:
212,077,965
II egg. Adjustment in CET-1 Capital
Tr.

.er
<3* 0

i
,.

I1.Add. SIR' Mudaraba Perpetual bond (AT-I Capital)

VI

ego

!Total Flivible Tier I Capital

".

cot -4
'41. n. `r1
0

I AM- General nmvision for unclassified investment

kr) c-::
0

ALA—
d• Mudaraha Subordinated Bond
,0 el § .f;
n s .",
h=r-ocsi

I AM • Others (As ner RBCA Guideline of BB)

•.

at
eg
.....

iTatel Tier 11 Canital

(4

en cc:. IN
ro-7 c ,a

12,43/3,626,612 I
00., ,s.

1
entrom.
cA,4,

Total EligibleTier II Capital (as per RBCA guideline)

38,744,629,113
Total eligible capitafas on 31 December 2023
All /Apr
e */
Managing Direct ci & CEO
 SOCIAL ISLAM! BANK PLC
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
Particulars nly1s1 31.12.2023 31.12.2022
Taka Taka
21 25,244,019,245 21,643,793,225
Investment income 15,648,810,651
22 17,677,123,207
Profit paid on deposits
7,566,896,038 5,994,982,574
Net investment income
23 1,481,632,839 1,407,929,007
Income from investment in shares and securities
24 2,797,494,183 3,803,725,179
Commission, Exchange and Brokerage
25 826,128,694 888,118,466
Other operating income
5,105,255,716 6,099,772,652
12,672,151,754 12,094,755,226
Total operating income
Operating expenses
26 4,717,525,092 4,347,776,677
Salaries and allowances
27 702,426,069 584,985,073
Rent, taxes, insurances, electricity etc.
28 13,491,107 9,203,342
Legal expenses
29 7,167,555 5,996,488
Postage, stamps, telecommunication etc.
Stationery, printings, advertisements etc. 30 161,313,911 120,093,105
Managing Director's salary and allowances 31 18,839,996 17,121,670
Directors' fees & expenses 32 4,149,188 3,780,162
Sharjah supervisory committee's fees & expenses 33 867,376 444,666
Auditors' fees 1,150,000 920,000
Depreciation & repair to Bank's assets 34 629,454,178 631,420,596
Zakat expenses 216,362,874 196,215,836
Other expenses 35 1,404,906,901 1,441,774,366
Total operating expenses 7,877,654,247 7,359,731,980
Profit/(loss) before provision 4,794,497,507 4,735,023,246
Provision for investments 736,036,727 671,509,077
Other provisions 36 94,571,573 159,049,505
Total provision 37 830,608,300 830,558,582
Total profit/(Ioss) before income taxes 3,963,889,207 3,904,464,664

Provision for taxation 38 1,399,759,111 1,474,681,819

Current tax 1,395,707,758 1,460,004,839
Deferred tax 4,051,353 14,676,980
Net profit/(loss) after taxation 2,564,130,096 2,429,782,845
Appropriations:
Statutory reserve 1,034,575,083 780,892,933
Start up Fund 25,641,301 24,297,828
Coupon/dividend on perpetual bond 410,974,515 393,500,01 1
1,471,190,899 1,198,690,772
Retained earnings for the year 1,092,939,197 1,231,092,073
2,564030,096 2,429,782,845

Earning per shape (EPS) (prior year restated) 39 1.98 1.88

Annexed notes (Ito 51) form an integral part of these financial statements

irec or Ator Managi g Di & CEO

Signed as per our report of same date

Md. Nu1 ossai Khan FCA Moha mad Shaheed FCA, FCMA
Enrollm Enro ment no. 1016
Managin ne Senior Partner
Kazi Za r an & Co. Khan Wahab Shafique Rahman & Co.
Chartered ACSOUlltAbit$ Chartered Accountants
DVC No. OAS 614749 DVC No.
Dhaka, Bangladesh
240424 1 016As398 5 9 3
Date:
24 /6( 2024
R7140
9
 SOCIAL ISLAMI BANK LIMITED

•••4

CZ
G•l;
(.7.)

L.4
›"I

G•1J

L.
(Amount in Taka)

Share Asset Revaluation Retained

General! Other Total
Particulars Paid-up Capital Premium Statutory Reserve Earnings
Reserves Reserve
Account

5 6 7 8=(2+3+4+5+6+
1 2 3 4
4-;

14
rn

ON
en
r-

Ni

0::,
C'

er
k0

e-.4
s.ID
"....

r..1

557,024,130 1,2:

Ni
(r,
st;
r.
a"..
Balance as at 01 January 2022 9,849,088,440

N--
I
.

Chanues in Accountinu Policy

IRestated Balance_
.....

,
1Siirnliis / (Deficit), on account of Revaluation of Properties
Sumhis / (Deficit), on account
-- of Revaluation of Investment
1 Clirreney translation Difference

,
Net Pain and losses not in the Income Statement
V

I —
- recoanized
r--
Ni
Ni
nki

c•:'

2,429,782,845
,r x

hNet 'profit for the year

,r
r-

Ni
rle

"•••••"

(24,297,828)
Stan -nn ftind for the year
_
ir
e•-;
••-•

ak
•-

CD

rn

—.

r, r
CI
‘....-

0 ...

,.._....

I Crum/in/dividend
_ on nemetual bond
780,892,933 I (780,892,933)1

.
I Annronriation made durina the year

.—
.1.7
•
-- • ------- (492,454,422) (492,454,421
1 Cash dividend

..
,
(492,454,420)1

=
,-
. ..1-
-.1-
-:::

-a
(---,
-,1-.
,--.1

-.s--,

=
.,
:/:
,.,...,

C
2
N
N

(13,764,977)
-

Transferred to retained earninus

N
k.c,

X
e--1

"—'
00

(".1

-•r-•• 0,5.

Transferred from deffered Tax

x
Lr
..-

kez

--

kr
c.

Ni

‘-r
Ni
.4

1,494,121,4N/
C:,'

,^7

.-4
10,341,542,860
d' -

Total shareholders' equity as on 31 December 2022

x
x Z.'. lr
r- sr; •,,r

<-4
•-
ni

en r,
1,494,121,487
© ©

x X,
-6,- s•C'
c'`. c:.

o6 oe
r----

-
10,341,542,860

-I.
-,s
co
=

rk=

.--
e

0•—•
-.;
x
C,

•-•--
<I-
r -.1

..6

1.ess- Adjustment in CET-1

_ Capital
o
rt
.1 -

rt.'
I-- ri, c-,1 r• I
t

h: •
x •
r- ,,

Ni -, X C

Add- SIR1, Mudaraba

_ Perpetual bond (AT-1 Capital)
24,291,192,9119
Total Eligible Tier 1 Canital
Add - General provision for unclassified investment
C;
CI

Le-, en
r-- C, -

Add- SIRI, Mudaraba

_ Subordinated Bond
r.-. o c•-: ,
',IC

et c:-., ck.,

c---1 o hi

Add: Others (As per RBCA Guideline of BB)

r0.1

,,,,.7

Total Tier II Canital

_
tk--! t--:..

I Total EligihleTier II Canital (as tier RBCA guideline)

0,.. 47.. •-k
X C -, 0 , C, X
kn, CT Ok ,C,

hi ••••1 Cl
NI .-,

r...", C. (--- ,D •C c:+;.

-et• ••,r ••d.

I Total eligible capiial as on 31 December 2022

51) form an integra f these financial statements

 Upto 01 Month I 01-03 Months I 03-12 Months 01-05 Years More than 05 years Total Current Year Total Previous Year
Particulars

±
±

N
+
1
t--
1
00

er
VI

en
1

C
N

X
•o•

en

:...:

1
..,...

....

2
Olt 0

CO
en r-

CON .1
NCNI

i
.. ...

I
1

1
./

i
I
4,315,18-21399

1.
;

2,030,466,220

ee
1. -

§
lif) en Os

§
§
Cp,

§
I1 .....

186,293,194 ..

0.
Its.% •

.,-;
Vi In VD it
e
ri er el s
en (.1 ee) e
t- - r.t er e

cit ,
I,

8
IPlarprnemt with Ranks RE other Financial Institutions co16/.C7‘t996c7

IrC 0

§
§
00
25,343,720,324

R. N
§.,

Ces Tr
14,439,357,751

. n.
rn
I--

......
,..
IIV LUZ id71
0

Investment (in Shares & Securities)

'C NN
0
N
r-
7,853,172,00u 360,816,978,271

,..
52,904,624,000

‘.0

00

CV
kr)

"
Cr) Cr) •-t
e...

h .
oo
00

00
- § _ :4..

en

en
en,

en
a.5 S m
0; --
et

Investments
Ill

et
99
00
liel
ef)

4,332,920,158 4,4iyi,,A043,000 1

t
2,166,460,079 2,166,460,079
0

Fixed Assets including premises, furniture & fixtures etc. 29,464,700,031

N
...
16,851,541,025 14,384,844,346

eri
er,

....
3,559,983,855

—
,.0
en

00
.1.

'-'..
t..1

0;
.

Other Assets

t
I

Non-Rank-Ma A CCPtS

0
,42

'Tr
sC,

ON
al'

0
N
N

N
..

..
et
r-
476,051,862,172

.I.
s.0
00

00
45,676,906,425 I

00

...

t--
in i.
Total Assets I 78,180,093,663 I 93,444,554,479

Liabilities
0

et

§
30,000,000,000
"et
en
Go
co

0
46

§ .

Tr
§

en
en
0;
Plarprmmt from Ranks RE. other financial institutions
,-.

340,950,314,928

M
12,052,063,611 1• 357,388,847,131

00.
et
.--,.
52,963,085,565

•-..

00
_8179ILVOI6`54

oo
I

Cr) en
Deposits and other accounts L 164,332,141,04 A M 0101 11107 L1G

N
52,531,465,218

ei
27,228,473,744

,_.

N.
el.
23,055,669,922

ON

1- -
erw
00
en

,0A)

•-•
0.
,..,1

....,
0

Provision and other liabilities

0
N

©
in

n. '

.
—,-
00

1
Na.
ON N

•-• m

Deferred tax liability 0

0
'V

v.
oo

99

er
.9:,

en

r-
ao.
.0.,

'R.

.....

so

00
39,280,537,355
4-1 Ci.
—,

, I
CI '11'

86,580,230,145 84,889,437,351 166,431,352,010

as t
00 en C

II

Total Liabilities I
10,061,413,032 I 6,396,369,070 I 22,383,442,294 I 2U,765,052,4U6 I
(8,400,136,482) 8,555,117,127 5,770,679,546
Net Liquidity Gap
 SOCIAL ISLAMI BANK PLC. AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2023
The Bank and its activities
Status of the Bank
The Bank was incorporated as a Public Limited Company in Bangladesh on 22nd November 1995 under Companies Act, 1994.
The Bank is one of the interest-free Shariah based Bank in the country and its modus- operandi are substantially different from
other conventional Banks. The Bank within the stipulations laid down by Bank Company Act, 1991 (as amended in upto) and
directives as received from time to time from Bangladesh Bank.. Besides as a matter of policy the Bank conducts its business on
the principles of Mudaraba, Musharaka, Murabaha, Bai-Muazzal and Hire Purchase transaction approved by Bangladesh Bank.
The Bank is listed with Dhaka Stock Exchange Limited and Chittagong Stock Exchange Limited as a publicly traded Company.
The Bank carries its Banking activities through one hundred seventy nine (179) branches operating as per Islamic Shariah
prevailing in the country.
The Registered Office of the Bank is located at its own premises at 'City Center', 90/1 Motijheel Commercial Area, Dhaka-1000.

1.2 Internet Banking services

SIBPLC has been providing anytime anywhere Banking service (24/7/365) through internet Banking since 2013. Recently,
SIBPLC reshaped its Internet Banking service with user friendly features like with a wide range of features as balance inquiry,
fund transfer, credit card bill payment, bill payment, and statement view options. SIBPLC has introduced "SIBPLC NOW'
mobile app to facilitate i-Banking services in the palm of hand. "SIBPLC NOW" Internet Banking and mobile app comes up with
various features including fund transfer (same Bank, other Bank, bKash), utility bill payment, mobile recharge, credit card bill
payment, viewing transaction history, location view of branches/booths etc over the intemet.

1.3 Agent Banking services

The Bank started operation of Agent Banking Services in 2015.
The principal activities of the Agent Banking Services are to provide Banking services to the Bank customers through
engagement of agents who conducts Banking Transaction on behalf of the Bank under a valid agency agreements rather than
Bank's own Tellers/Cashiers to deliver the services within the applicable rules & regulations and guidelines of Bangladesh Bank.

1.4 Enlistment with the stock exchanges

The Bank subscribed for IPO (Initial Public Offering) in the year 2000 and initially listed with Dhaka Stock Exchange (DSE) Ltd.
and later on in the year 2005 with Chittagong Stock Exchange (CSE) Ltd.
Subsidiaries of SIBPLC:
1.5 SIBL Securities Limited
SIBL Securities Limited, a wholly owned subsidiary of SIBPLC, was incorporated as a Public Limited Company under the
Companies Act,1994 vide certification of incorporation no. C - 85876/10 dated 20 July 2010 and obtained its certificate of
commencement of business on the same day. The Company has already got it license for trading with Dhaka Stock Exchange
(DSE) and Chittagong Stock Exchange (CSE). The Company started its commercial operation in the month of January 2012.
The principal place of business is the Registered Office at 3rd floor, 15 Dilkusha C/A, Dhaka-1000.
The principal objectives of the Company for which it was established are to carry on the business of stock brokers, dealers in
relation to shares and securities dealings and other services as mentioned in the Memorandum and Articles of Association of the
Company.
1.6 SIBL Investment Limited
SIBL Investment Limited, a wholly owned subsidiary of SIBPLC, was incorporated as a Public Limited Company under the
Companies Act, 1994 vide certification of incorporation no. C - 86726/10 dated 30 August 2010 and obtained its certificate of
commencement of business on the same day.
The principal objectives of the Company for which it was established are to carry on the business of stock brokers, dealers in
relation to shares and securities dealings, to underwrite, manage and distribute the issue of stocks etc. and other services as
mentioned in the Memorandum and Articles of Association of the Company.
Paid up Capital Percentage of Share Holding
Name of the Company (Taka) SIBL Others
SIBL Securities Limited 1,537,500,000 99.999922% 0.000078%
21SIBL Investment Limited 250,000,000 99.99968% 0.000320%
Total capital 1,787,500,000

1.7 Off-shore Banking unit (OBU)

Bangladesh Bank approved operation of Off-Shore Banking Unit (OBU) of Social Islami Bank PLC located at head office,
-though their letter no. BRPD(P-3)744(119)/2010-4652, Dated: 11.11.2010. The Bank has commenced the operation of its 0
e Banking Unit (OBU) from 02.05.2012. sof 1Quk.
rincipal activities of the OBUs are to provide commercial banking services through its Units within the rules & r ations
idelinzs of Bangladesh Bank applicable for the Off-shore Banking Units.
14
1.8 Compliance of International Accounting Standards (IAS) and International Financial Reporting standards (IFRS):

n compliance with IAS No.] Status

Presentation of Financial Statements Applied

Inventories 2 N/A
Statement of Cash Flows 7 Applied
Accounting Policies, Changes in Accounting Estimates and Errors 8
Applied

Events After the Reporting Period 10 Applied

Income Taxes 12 Applied
Property, Plant and Equipment 16 Applied
Employee Benefits 19 Applied
Accounting for Government Grants and Disclosure of Government 20
N/A
Assistance
The Effects of Changes in Foreign Exchange Rates 21 Applied
Borrowing Costs 23 N/A
Related Party Disclosures 24 Applied
Accounting and Reporting by Retirement Benefit Plans 26 N/A
Consolidated and Separate Financial Statements 27. Applied with in compliance with related
BRPD Circular
Investments in Associates 28 N/A
Financial Instruments: Presentation 32 Applied with in compliance with related
BRPD Circular

Earnings Per Share 33 Applied

Interim Financial Reporting* 34 Applied
Impairment of Assets 36 Applied
Provisions, Contingent Liabilities and Contingent Assets 37 Applied
Intangible Assets 38 Applied
Investment Property 40 N/A
Agriculture 41 N/A

In compliance with IFRS No. Status

First-time Adoption of International Financial Reporting Standards N/A

'Share-based Payment 2 N/A
Aonlied
Insurance Contracts 4 N/A
Non-current Assets Held for Sale and Discontinued Operations S N/A
Exploration for and Evaluation of Mineral Assets 6 . N/A
.. ..
Financial Instruments: Disclosures Applied to the extent 01 compliance witn
core risk management guideline of
Bangladesh Bank.
'Operating Segments N/A
'Financial Instruments Applied to the extent of compliance with
(Financial Instruments) which is
mandatorily effective for periods beginning
on or after 1 January 2019 with early
adoption permitted (subject to local
endorsement requirements. Applied to the
context of compliance with BRPD circular
no. 15, Dated: 09.11.2009, DOS circular no.
5, Dated: 26.05.2008 and DOS circular no.
5, Dated:28.01.2009.
Consolidated Financial Statements 10 Applied
Joint Arrangements 11 N/A
Disclosure of Interests in other Entities 12 Applied
Fair Value Measurement 13 Applied
Regulatory Deferral Accounts 14 N/A
Revenue from Contracts with customers 15 Applied
Leases IFRS -16 16 Applied

(*) Complied while the quarterly and half-yearly interim financial reports were prepared during the year as per
gulations of Bangladesh Securities and Exchange Commission (BSEC).

15
 2 Basis of presentation of financial statements and significant accounting policies
2.1 Changes in significant accounting policies
Except for the changes below, the Bank has consistently applied the accounting policies to all periods presented in these financial
statements.
IFRS 16 is effective for annual periods beginning on or after 1 January 2019. The Bank has initially adopted IFRS 16 Leases
from 1 January 2020. IFRS 16 introduced a single, on-balance sheet accounting model for lessees. As a result, the Bank as a
lessee, has recognised right-of-use assets representing its' rights to use the underlying assets and lease liabilities representing its
obligation to make lease payments. Lessor accounting remains similar to previous accounting policies. The Bank has applied
IFRS 16 using the modified retrospective approach, under which the cumulative effect of initial application is recognised at 1
January 2020.

2.2 Basis of preparation of the financial statements

2.2.1 Basis of accounting
The financial statements of the Bank have been prepared under historical cost convention except investments which are measured
at present value and in accordance with "First Schedule" of the Bank Company Act, 1991 as amended under sub-section 38(4) of
the Act, relevant Bangladesh Bank Circulars and International Financial Reporting Standards (IFRSs) adopted by the Institute of
Chartered Accountants of Bangladesh (ICAB) & Bangladesh Financial Reporting Council, the Companies Act, 1994, the
Securities and Exchange Rules, 1987 and other rules and regulations applicable for Banks in Bangladesh.
In cases, any requirement of provisions and circulars issued by Bangladesh Bank differs with those of other regulatory authorities,
the provisions & circulars issued by Bangladesh Bank prevailed.
2.2.2 Going concern estimation
The Financial Statements, namely, Balance Sheet, Profit and Loss Account, Cash Flow Statements, Statement of Changes in
Equity, Statement of Liquidity Analysis and relevant notes to the financial statements and disclosures thereto, of the Bank are
prepared under historical cost convention on a going concern basis. Management of the Bank has made an estimation that there
are no possibility to liquidate the entity or to cease trading, or has no realistic alternative but to do so.
2.2.3 Statement of compliance
The Financial Reporting Act 2015 (FRA) was enacted in 2015. Under the FRA, the Financial Reporting Council (FRC) is formed
and it is yet to issue financial reporting standards for public interest entities such as Banks. The Bank Company Act 1991 obliges
Banks to prepare their financial statements under such financial reporting standards. Due to unavailability of any financial
reporting standards by FRC, International Financial Reporting Standards (IFRS) as approved by the Institute of Chartered
Accountants of Bangladesh (ICAB) are still applicable.

Accordingly, the financial statements of the Bank continue to be prepared in accordance with International Financial Reporting
Standards (IFRS) and the requirements of the Bank Company Act 1991, the rules and regulations issued by Bangladesh Bank
(BB), the Companies Act 1994, Securities and Exchange Rules 1987. In case any requirement of the Bank Company Act 1991,
and provisions and circulars issued by Bangladesh Bank differ with those of IFRS, the requirements of the Bank Company Act
1991, and provisions and circulars issued by Bangladesh Bank shall prevail.

According to BRPD circular no 2 dated 25 February 2019 financial statements for the Bank is prepared on a solo basis from 2019
where OBU information is included in equivalent BDT denomination. However key financial informations of OBU is provided as
"Annexure H" the solo financial statements of the Bank. Material deviations from the requirements of IFRS in preparing the
financial statemets are as follows:

Presentation of financial statements

1FRS: 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. LAS 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: The financial statements and certain disclosures therein are presented in a prescribed fonnat (i.e. balance
sheet, profit and loss account, cash flows statement, statement of changes in equity, liquidity statement) in accordance with the
guidelines of the 'First Schedule' (section 38) of the Bank Companies Act 1991 as amended and BRPD circular no. 15 dated 09
November, 2009 and other subsequent guidelines of BB. In the prescribed format of BB there is no component of other
comprehensive income and accordingly the elements of other comprehensive income and the tax thereon (if any) is recognized
directly in the statement of changes in equity. The assets and liabilities are presented in accordance with the prescribed format of
BB and accordingly not classified as current and non-current classification as required by IAS-1.

16
 Investment in shares and securities
IFRS: As per requirements of IFRS-9 "Financial Instruments", investment in shares and securities are generally classified either
at fair value through profit or loss or at fair value through other comprehensive income and measured initally at its fair value plus
transaction costs that are directly attributable to the acquisition of the financial asset . However in the case of financial assets
classified and measured at fair value through profit or loss, transactions costs are immediately recognised in profit or loss. Change
in the fair value of shares and securities measured at fair value through profit or loss is recognised in the statement of profit or
loss and changes in the fair value of shares (as measured in accordance with IFRS-13) and securities measured at fair value
through other comprehensive income is recognised in the other comprehensive income and are never reclassified to pofit or loss.

Bangladesh Bank: As per BRPD circular no. 14 dated 25 June 2003, investments in shares and securities are classified under
held to maturity (HIM) or held for trading (HFT) and measured at cost. Transaction costs that are directly attributable to the
acquisition added to the initial fair value except for financial assets classified as HFT where they should be recognized in profit or
loss.
After initial recognition, HFT govt. securities are measured according to DOS circular no. 05 dated 26 May 2008 and DOS
circular no. 05 dated 28 January 2009, where amortization loss is charged to profit and loss account, mark-to-market loss on
revaluation is charged to profit and loss account, but any unrealized gain on such revaluation is recognized in revaluation reserve
account. HIM govt. securities are measured at amortized cost and increase/decrease related to amortization is recognized in
equity.
As per BRPD circular no. 14 dated 25 June 2003 and DOS circular No.4 dated 24 November 2011, investments in quoted and
unquoted shares are revalued at the year-end at market price and at Book Value of last audited balance sheet respectively. As
such, provision is made against the diminution in value of investments considering netting of gain /loss. Investment in mutual
fund (open-end) is revalued at lower of cost and higher of (market value and 95% of NAV) as per instruction of DOS circular no.
03 dated 12 March 2015 and closed end mutual fund is revalued at lower of cost and higher of (market value and 85% of NAV)
as per DOS circular no. 10 dated 28 June 2015. As such, provision is made t'or any loss arising from diminution in value of
investments (portfolio basis); otherwise investments are recognized at costs.

iii Provision on investments and off balance sheet

IFRS: As per IFRS 9 an entity shall recognise an impairment allowance on advances based on expected credit losses. At each
reporting date, an entity shall measure the impairment allowance for advances at an amount equal to the lifetime expected credit
losses if the credit risk on these advances has increased significantly since initial recognition whether assessed on an individual or
collective basis considering all reasonable information, including that which is forward-looking. For those advances for which the
credit risk has not increased significantly since initial recognition, at each reporting date, an entity shall measure the impairment
allowance at an amount equal to 12 month expected credit losses that may result from default events on such advances that are
posSIBPLCe within 12 months after reporting date.

Bangladesh Bank: As per BRPD circular No.24 (17 November 2019), BRPD circular No.6 (19 May 2019), BRPD circular No.4
(16 May 2019), BRPD circular No.3 (21 April 2019), BRPD circular No.15 (27 September 2017), BRPD circular No.16 (18
November 2014), BRPD circular No.14 (23 September 2012), BRPD circular No. 19 (27 December 2012), BRPD circular No.
05 (29 May 2013) and BRPD circular No.1 (20 February 2018) a general provision at 0.25% to 5% under different categories of
unclassified advances (good/standard) has to be maintained regardless of objective evidence of impairment. Also specific
provision for sub-standard advances, doubtful advances and bad losses has to be provided at 5%, 20%, 50% and 100%
respectively for advances depending on time past due. Again as per BRPD circular no. 10 dated 18 September 2007 and BRPD
circular no. 14 dated 23 September 2012, a general provision at 1% is required to be provided for all off-balance sheet exposures.
Such provision policies are not specifically in line with those prescribed by IFRS 9.

iv Recognition of profit in suspense and compensation

IFRS: Advances to customers are generally classified at amortised cost as per IFRS 9 and profit on advance is calculated by
using the effective profit rate method to the gross carrying amount over the term of the advance. Once an advance subsequntly
become credit-impaired, the entity shall apply the effective profit rate to the amortised cost of these advances.

Bangladesh Bank: As per BRPD circular no. 15 dated 09 November 2009, once an advance is classified as impaired, profit on
such advance are not allowed to be recognised as income, rather the corresponding amount needs to be credited to an profit in
suspense account, which is presented as a liability in the balance sheet.

Other comprehensive income

IFRS: As per IAS 1 Other Comprehensive Income (OCI) is a component of financial statements or the elements of OC1 are to be
included in a single other comprehensive income statement.
Bangladesh Bank: Bangladesh Bank has issued templates for financial statements which will strictly be followed by all Banks.

vi Financial instruments — presentation and disclosure

In several cases Bangladesh Bank guidelines categorise, recognise, measure and present financial instruments differently from
those prescribed in IFRS 9. As such full disclosure and presentation requirements of IFRS 7 and IAS 32 cannot be made in the
titian • I statements.

17
vii Financial guarantees
IFRS: As per IFRS 9, fmancial guarantees are contracts that require the issuer to make specified payments to reimburse the
holder for a loss it incurs because a specified debtors fails to make payment when due in accordance with the original or modified
terms of a debt instrument. Financial guarantee liabilities are recognised initially at their fair value plus transaction costs that are
directly attributable to the issue of the financial liabilities. The financial guarantee liability is subsequently measured at the higher
of the amount of loss allowance for expected credit losses as per impairment requirement and the amount initially recognised less,
income recognised in accordance with the principles of IFRS 15. Financial guarantees are included within other liabilities.

Bangladesh Bank: As per BRPD 15 dated 09 November 2009, financial guarantees such as letter of credit and letter of
guarantee will be treated as off-balance sheet items. No liability is recognised for the guarantee except the cash margin. As per
BRPD Circular No.01 dated 03 January 2018 and BRPD Circular No.14 dated 23 September 2012, the Bank is required to
maintain provision at 1% against gross off-balance sheet exposures (which includes undrawn investment commitments).

viii Cash and cash equivalents

IFRS: Cash and cash equivalent items should be reported as cash item as per IAS 7.
Bangladesh Bank: Some cash and cash equivalent items such as money at call on short notice, treasury bills with maturity of
more than three months and prize bond are not shown as cash and cash equivalents. Money at call on short notice is shown
separately in the balance sheet. Treasury bills with maturity of more than three months and prize bond are shown under
investment in the balance sheet.

ix Non-Banking assets
IFRS: No indication of Non-Banking assets is found in any IFRS.
Bangladesh Bank: As per BRPD 15 dated 09 November 2009, there is a separate balance sheet item named Non-Banking assets
existed in the standard format.

Cash flow statement

IFRS: The cash flow statement can be prepared using either the direct method or the indirect method as per IAS 7. 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 15 dated 09 November 2009, the cash flow statement is a mixture of both the direct and the
indirect methods.

Xi Balance with Bangladesh Bank: (Cash Reserve Ratio - CRR)

IFRS: CRR maintained 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 including CRR is treated as cash and cash equivalents.
xii Presentation of intangible assets
IFRS: Intangible assets must be identified and recognised, and the disclosure must be given as per IAS 38.
Bangladesh Bank: There is no regulation for intangible assets in BRPD 15 dated 09 November 2009.
xiii Off-balance sheet items
IFRS: As per IFRS, there is no requirement for disclosure of off-balance sheet items on the face of the balance sheet.
Bangladesh Bank: As per BRPD circular no. 15 dated 09 Novemebr 2009, off balance sheet items (e.g. Letter of credit, Letter of
guarantee etc.) must be disclosed separately on the face of the balance sheet.

xiv As per IFRS 9 Investments net off provision

IFRS: Investments should be presented net of provision.
Bangladesh Bank: As per BRPD 15 dated 09 November 2009, provision on investments are presented separately as a liability
and cannot be netted off against investments.

XV Charges on tax on retained earnings, reserve & surplus as per Income Tax Act (ITA) 2023
As per section 23 of the Income Tax Act 2023, proposed dividend of Listed companies should be disclosed in the Balance sheet
as "amount to be distributed as dividend." However there is no such provision in BRPD 14 dated 25 June 2003 and BRPD 15
dated 09 November 2009 and IFRS restrict such presentation in the balance sheet.

xvi Comparative information of changes in equity

IFRS : As per IAS 1, Comparative information in to be provided with the financial statements.
Bangladesh Bank: As per BRPD 15 dated 09 November 2009, no comparative is suggested for statements changes in equity.

xvii Revaluation gains/losses on government securities

As per requirement of IFRS 9 "Financial Instruments: where securities will fall under the category of fair value through profit or
loss account and any change in fair value of the asset is recognized through profit or loss account.
SIBPLC is a Bank running on Islamic Shariah principle. Hence, we do not participate in buying interest bearing Government
securities.
fli' isclosure of appropriation of profit
S: There is no requirement to show appropriation of profit in the face of statement of comprehensive income.

18
 Bangladesh Bank: As per BRPD circular no. 15 dated 09 November 2009 an appropriation of profit should be disclosed in the
face of profit and loss account.

xix Recognition of Profit in Suspense

IFRSs: Investment to customers are generally classified as "Loans and receivables" as per IFRS 9 and profit income is
recognised through effective profit rate method over the term of the Investment. Once an investment is impaired, investment
income is recognised in profit and loss account on the same basis based on revised carrying amount.
Bangladesh Bank: As per BRPD Circular No. 15 dated 09 November 2009, once an investment is classified , profit on such
investment are not allowed to be recognised as income, rather the corresponding amount needs to be credited to an profit in
suspense account, which is presented as liability in balance sheet.
2.2.4 Investment in shares and securities
The Bank investment in different securities has been valued on 31.12.2023 as under:
Quoted Bond & Shares At cost or Market Value whichever is lower
Unquoted Shares At cost
Bangladesh Govt. Islamic Bond At cost
CDBL Share, Preference Share & Others At cost
Mudaraba Subordinated Bond At cost
Mudaraba Perpetual Bond At cost
Bangladesh Govt. Islamic sukuk At cost

All investment in securities are initially recognized at cost including acquisition charges associated with the investment.
Premiums are amortised and discounts are accredited.

As per BRPD circular no. 15 (09 November 2009), investments in quoted shares and unquoted shares are revalued at the year end
at market price and as per book value of last audited balance sheet respectively, Provision has been made for any loss arising
from diminution in value of investment. As such the Company measures and recognizes investment in quoted and unquoted
shares at cost it' the year—end market value (for quoted shares) and book value (for unquoted shares) are higher than the cost. At
the year-end the company's market value and book value of quoter and unquoted shares was lower than cost price by Taka 13.95
million. Required provision have been ascertained as per DOS circular no: 04, dated-15 June 2010 and 24 November 2011
respectively. However as per requirements of International Accounting Standard (IAS)-39, investment in shares falls either
under"at fair value through profit or loss account" or under "available for sale" where any change in the fair value at the year-end
is taken to profit and loss account or revaluation reserve respectively.

Derivatives
A derivative is an investment instrument that consists of a contract between parties whose value derives from and depends on the
value of an underlying financial asset. In short, these are the instruments whose value depends on underlying asset. The
underlying asset can be equity, index, commodity, bond or currency. Some of the examples of Derivatives are Forwards, Futures,
Options and Swaps. As a shariah based Islami Bank, SIBPLC can not take part in issuing or purchasing any derivatives. Typical
examples of derivatives are futures and forward, swap and option contracts. As a shariah based lslami Bank, SIBPLC can not
take part in issuing or purchasing any derivatives.

2.2.5. Investments and provisions

In accordance with IFRS 9, Financial Instruments, with the exception of purchased or originated credit (invesment) impaired
financial assets ,expected credit (investment) losses are required to be measured through a loss allowance at an amount equal to
the 12-month expected credit (invesment)in losses (expected credit (invesment) losses that result from those default events on the
financial instrument that are posSIBPLCe within 12 months after the reporting date; or full lifetime expected credit (invesment)
losses (expected credit /invesment losses that result from all posSIBPLCe default events over the life of the financial instrument).
A loss allowance for full lifetime expected credit (invesment) losses is required for a financial instrument if the credit
(invesment)tisk of that financial instrument has increased significantly since initial recognition, as well as to contract assets or
trade receivables that do not constitute a financing transaction in accordance with IFRS 15. Additionally, entities can elect an
accounting policy to recognise full lifetime expected losses for all contract assets and/or all trade receivables that do constitute a
financing transaction in accordance with IFRS 15. The same election is also separately permitted for lease receivables. For all
other financial instruments, expected credit (invesment) losses are measured at an amount equal to the 12-month expected credit
(investment) losses.

However, Provision for classified and unclassified investment is made on the basis of year end review by the management and of
instructions contained in Bangladesh Bank BRPD circular No. 24 (17. Noverneber 2019), BRPD circular No.6 (19 May 2019),
BRPD circular No. 4 (16 May 2019), BRPD circular No.3 (21 April 2019), BRPD circular No.1 (20 February 2018), BRPD
circular No.15 (27 September 2017), BRPD circular No.16 (18 November 2014), BRPD circular No.14 (23 September 2012),
BRPD circular No. 19 (27 December 2012), BRPD circular No. 05 (29 May 2013), BRPD circular No.16 (21 July 2020), BRPD
circular No. 52 (20 October 2020), BRPD circular No. 56 (10 December 2020) and BRPD circular No. 03 (02 February 2023)
is specified at the following rates:

Rate
Gelled,Provision on Contingent Liability/ Non Funded Business I%
rovision on Unclassified Investment 1%
()vision on Investment for Small and Medium Enterprise 0-25%
19
 General Provision on Investment for Professionals 2%
General Provision on Investment for Share 2%
General Provision on Investment for House Financing 1%
General Provision on Investment for Consumer Financing 2%
General Provision on Investment for Short term Agri/ Micro credit 1%
General Provision on Special Mention Account 0.25%-2%
Specific Provision on Substandard Investment 5%, 20%
Specific Provision on Doubtful Investment 20%, 50%
Specific Provision on Bad or Loss Investment 100%
Specific Provision on Substandard Investment for Short term Agri/ Micro credit 5%
Specific Provision on Doubtful Investment for Short term Agri/ Micro credit 5%
Specific Provision on Bad or loss Investment for Short term Agri/ Micro credit • 100% •
Special General Provision-Covid 19 for all deferred facility investments ' 1%-2%

As per same circulars mentioned above SIBPLC has to maintain provision @ 20%, 50% and 100% for investments classified as
sub-standard, doubtful and bad & loss category respectively depending on the duration of overdue.
As per BRPD Circular No.: 10 (18 September 2007) and BRPD Circular No.: 14 (23 September 2012), a general provision at 1%
is required to be provided for all off-balance sheet risk exposures.

However, such general provision on general investment & off-balance sheet exposures and specific provisions on classified
investments cannot satisfy the conditions of provision as per relevant IFRS or IAS.

2.2.6. Off-balance sheet items

Contingent liabilities
In accordance with IFRS, there is no requirement to disclose off-balance sheet items on the face of the balance sheet.
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
results in the recognition of income which may never be realised. However, the amount of cash margin is recognised as liability.
As per BRPD Circular No.: 15, contingent liabilities are recognised as off balance sheet items in absence of any recommendation
in IFRS.
2.3 Consolidation procedures (IAS-27)
The consolidated financial statements include the financial statements of Social Islami Bank PLC. and its two (2) subsidiaries
SIBL Securities Limited and SIBL Investment Limited, made up to the end of the financial year.

The consolidated financial statements have been prepared in accordance with International Accounting Standard (IAS) 27:
Separate Financial Statements, International Financial Reporting Standards (IFRS):3- Business Combinations and International
Financial Reporting Standards (IFRS):10- Consolidated Financial Statements. The consolidated financial statements are prepared
to a common financial period ended 31 December 2023.

2.4 Measurement of elements in the financial statements

Measurement is the process of determining the monetary amounts at which the elements of the financial statements are to be

recognized and carried in the financial statements. The measurement basis adopted by the Bank is historical cost except for land,

building and few of the financial assets which are stated in accordance with the policies mentioned in the respective notes.

2.5 Subsidiary
Subsidiary is that enterprise which is controlled by the Bank. Control exists when the Bank has the power, directly or indirectly,
to govern the financial and operating policies of an enterprise from the date that control commences until the date that control
ceases. The financial statements of subsidiary are included in the consolidated financial statements from the date that control
effectively commences until the date that the control effectively ceases. Subsidiary Company is consolidated using the purchase
method of accounting.

2.5.1 Investment in subsidiaries in the Bank separate financial statements

When the Bank prepares separate financial statements, it accounts for investments in subsidiaries at cost.

20
 2.6 Functional and presentation currency
These financial statements are presented in Bangladesh Taka (Tk) which is the Bank's functional currency. Except as indicated,
figures have been rounded off to the nearest Taka. The functional currency of Off-shore Banking Unit (OBU) is United States
Dollar and its financial statements have been translated to the presentation currency, i.e Bangladesh Taka following the guidelines
of IAS 21, Changes in foreign Exchange Rates.

2.7 Accounting policies, changes in accounting estimates and errors: (1AS-8)

The preparation of the consolidated financial statements in conformity with IFRSs requires management to make judgements,
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.

2.8 Foreign currency transactions /translation

Foreign currency transactions are converted into equivalent Taka currency using the ruling exchange rates on the dates of such
transaction(s).

Assets and liabilities in foreign currencies as on 31 December 2023 have been converted into Taka currency at the weighted
average of the prevailing buying and selling rate of inter-Bank market as determined by Bangladesh Bank on the closing date of
every month. Balances held in foreign currencies other than US dollar are translated into equivalent US dollar at buying rates of
New York closing of the previous day. Differences arising through buying and selling transactions of foreign currencies on
different dates during the period from January to December 2023 have been adjusted by debiting or crediting to the Profit and
Loss Account.
2.9 Comparative information and rearrangement thereof
Comparative figures have been re-arranged wherever considered necessary to ensure better comparability with the current period

without causing any impact on the profit and value of assets and liabilities as reported in the financial statements.

2.10 Adoptation of new accounting standards

The Bank has consistently applied the accounting policies as set out above to all periods presented in these financial statements.
The various amendments to standards, including any consequential amendments to other standards, with the date of initial
application of 1 January 2019 have been considered. A number of standards and amendments to standards are effective for
annual periods beginning after 1 January 2019 and earlier application is permitted. However, the Bank has not early applied these
new standards and yet assess potential impact on its financial statements.

2.10.1. 1FRS 16: Leases

In January 2016, the International Accounting Standards Board (1ASB) issued IFRS-16. IFRS-16 replaces IAS-17, IFRIC 4, SIC
15 and SIC 27 which sets out the principles for recognition, measurement, presentation and disclosure of leases which is effective
from annual reporting periods beginning on or after 01 January 2019. Social Islami Bank PLC. has applied IFRS 16: "lease" for
the first time with the date of initial application of 01 January 2020 using modified retrospective approach where the bank
measured the lease liability at the present value of the remaining lease payments and recognized a right-of-use asset at the date of
the initial application on a lease by lease basis.As IFRS-16 supersedes IAS-17 Lease, the bank has made recognition,
measurement and disclosure in the financial statements-2020 both as Lessee and Lessor as per IFRS-16.

Bank as lessee:
"The bank assesses at initiation of a contract whether the contract is, or contains a lease. That is, if the contract conveys the right
to control the use of an identified asset for a period of time in exchange of consideration, then the bank consider the contract as a
lease contract. The bank as a lessee applies a single recognition and measurement approach for all leases, except for short-term
leases, or, and lease of low value of assets. The bank recognizes lease liabilities to make lease payment and right-of-use assets
representing the right to use the underlying assets. If tenor of a lease contract does not exceed twelve months from the date of
initiation/application, the bank considers the lease period as short term in line with the recognition threshold of ROU assets as per
FA policy of the bank. The Bank determine incremental borrowing rate to calculate the ROU assets and depreciate the asset over
the useful life by straight line method. The right-of-use asset is measured at cost, which is made up of the initial measurement of
the lease liability, any initial direct costs incurred by the Bank, an estimate of any costs to dismantle and remove the asset at the
end of the lease, and any lease payments made in advance of the lease commencement date (net of any incentives received).

Subsequent to initial measurement, the liability will be reduced for payments made and increased for interest. It is premeasured to
reflect any reassessment or modification, or if there are changes in in-substance fixed payments. The Bank has elected to account
for short-term leases and leases of low-value assets using the practical expedients. Instead of recognizing a right-of-use asset and
lease liability, the payments in relation to these are recognized as an expense in profit or loss on a straight-line basis over the lease
term. On the statement of Balance sheet, right-of-use assets have been included in property, plant and equipment and e
haw been included other liabilities. x\p,f 1004.
co

c tk
At elaelgn
21 JO.
140/ *
 Right-of-use assets (ROU):
The bank recognises the right-of-use (ROU) assets at the commencement date of the lease (i.e. the date the underlying asset is
available for use). The Right of use (ROU) are initially measured at the present value of unavoidable lease payments. The
depreciation of the lease asset (ROU) is recognized in the profit or loss account over the lease term.

The bank assessed all lease contracts live in 2020 and recognised as ROU of assets of all leases, except short term and low value
of assets as guided by Banks' own policy set as per IAS-16 and IFRS-16. The ROU assets are presented in the Note 8.00 of these
financial statements. "

Lease Liabilities (Bank as a lessee):

"At the commencement of the lease, the bank recognises lease liabilities measured at the present value of lease payments to be
made over the lease term. The lease payments include fixed and variable lease payment (less any adjustment for initial payment),
and amount is expected to be paid under residual value of guarantees. The lease liabilities are presented in the Note 14.00 of these
financial statements.

Social Islami Bank PLC. has applied IFRS 16 in 01 January 2020 using modified retrospective approach where the bank
measured the lease liability at the present value of the remaining lease payments and recognized a right-of-use asset at the date of
the initial application on a lease by lease basis. But among 179 branches and sub-branches S1BPLC has applied IFRS-16 on only
144 branches.

2.10.2. IFRS 17: Insurance contracts

IFRS 17 was issued in May 2017 and applies to annual reporting periods beginning on or after 1 January 2023. IFRS 17
establishes the principles for the recognition, measurement, presentation and disclosure of insurance contracts within the scope of
the standard. The objective of IFRS 17 is to ensure that an entity provides relevant information that faithfully represents those
contracts. The Bank has not yet assessed in potential impact of IFRS 17 on its financial statements.

2.10.3 Approval of the financial statements

The Board of Directors of the Bank adopted the financial statements for the year ended 31 December 2023 as on its 51 0th Board
meeting held on 24 April 2024 and authorized the financial statements on 24 April 2024.

2.10.4 Statement of changes in equity

The statement of changes in equity reflects information about the increase or decrease in net assets or wealth.

2.11 Liquidity statement

Liquidity Statement has been prepared based on the residual/remaining maturity of assets and liabilities as on 31 December 2022
as per the guidelines for islamic banking issued by Bangladesh Bank through BRPD Circular No. 15 dated 09.11.2009 and BRPD
Circular No.14 dated 25.06.2003 as follows:
i) Balance with other banks and financial institutions, etc. are on the basis of their respective maturity term;
ii) Investments in shares & securities are on the basis of their respective maturity;
iii) General investments are on the basis of their recovery/repayment schedule;
iv) Fixed assets [property, plant & equipment] are on the basis of their useful lives;
v) Other assets are on the basis of their realization/amortization;
vi) Deposits and other accounts are on the basis of their maturity and payments;
vii) Provisions and other liabilities are on the basis of their adjustment/settlement;
viii) Due to perpetual in nature/maturity, Mudaraba Perpetual Bond (MPB) is reported under maturity more than 5 (five) years.

ix) Mudaraba Redeemable Subordinated Bond is reported under maturity I (one) to 5 (five) years and more than 5 (five) years.

2.12 Measurement of property, plant & equipment after recognition

Cost model
After recognition as an asset, an item of property, plant and equipment shall be carried at its cost less any accumulated
depreciation and any accumulated impairment losses.

Revaluation model
The revaluation model requires an asset, after initial recognition, to be measured at a revalued amount, which is its fair value less
subsequent accumulated depreciation and impairment accumulated losses.
Where an asset's carrying amount is increased as a result of a revaluation, the increase is recognized in equity under the heading
of revaluation surplus. However, the increase is recognized in profit or loss to the extent that it reverses a revaluation decrease of
the same asset previously recognized in profit or loss.

Where an asset's carrying amount is decreased as a result of a revaluation, the decrease is recognized in profit or loss. However,
the decrease is recognized in equity to the extent of any credit balance existing in the revaluation surplus in respect of that asset.
The decrease recognized in equity reduces the amount accumulated under the heading of revaluation surplus.

k's
22
 The revaluation surplus included in equity in respect of an item of property, plant and equipment is transferred directly to retained
earnings when the asset is derecognized. However, some of the surplus is transferred as the asset is used by the Bank. In such a
case, the amount of the surplus transferred would be the difference between depreciation based on the revalued carrying amount
of the asset and depreciation based on the asset's original cost.
The Bank revalued its fixed assets on 20.03.2011 by two separate valuers, namely- 'Commodity Inspection Services (BD) Ltd.'
and 'Royal Inspection International Ltd.' But the effects on assets have been accounted for as on 30,03.2011.
Derecognition of property, plant and equipment
The carrying amount of an item of property, plant and equipment is derecognized on disposal or when no future economic
benefits are expected from its use or disposal. The gain or loss arising from the derecognition of an item of property, plant and
equipment is included as other income in profit or loss when the item is derecognized.

Depreciation

The depreciation charge for each period is recognized in profit or loss unless it is included in the carrying amount of another
asset. Depreciation of an asset begins when it is installed and available for use, i.e. when it is in the location and condition
necessary for it to be capable of operating in the manner intended by management. Depreciation of an asset ceases at the earlier of
the date that the asset is classified as held for sale and the date that the asset is derecognized. The residual value and the useful life
of an asset is reviewed at least at each financial year-end and, if expectations differ from previous estimates, the change(s) shall
be accounted for as a change in an accounting estimate.

Depreciation is calculated based on the cost/revalued amount of items of fixed assets [property, plant & equipment] less their
estimated residual values using either of straight-line method (SLM) or reducing balance method (RBM) over their estimated
useful lives and recognized in profit and loss. Land is not depreciated:Rates of depreciation considering the useful life of
respective assets are as follows:

Particulars Rate (A) Estimated life(Years)

Building 2.5 40
Furniture & Fixtures 10 10
Office Equipment 20 5
. Software 10 10
Vehicles 20 5
Books 10 10

2.13 Off-balance sheet exposures

In compliance with the instruction contained in BRPD Circular No 10 dated 18 September 2007 issued by Bangladesh Bank,
provision against the off-balance sheet exposures of the Bank as at reporting date has been made as under:

Rates
Bangladesh
Category / status of Off-balance sheet exposures
Bank's Maintained by the Bank
requirement
General provision for Off-balance sheet exposures
All types of Off-balance sheet exposures 1.00% 1.00%

2.14 Impairment of assets (IAS-36)

The policy for all assets or cash-generating units for the purpose of assessing such assets for impairment is as follows:
The Bank assesses at the end of each reporting period or more frequently if events or changes in circumstances indicate that the
carrying value of an asset may be impaired, whether there is any indication that an asset may be impaired. If any such indication
exits, or when an annual impairment testing for an asset is required, the Bank makes an estimate of the assets recoverable amount.
When the carrying amount of an asset or cash-generating unit exceeds its recoverable amount, the asset or cash-generating unit is
considered impaired and is written down to its recoverable amount by debiting to profit & loss account. Fixed assets are reviewed
for impairment whenever events or charges in circumstances indicate that the carrying amount of an asset may be impaired.
However no changes have arisen during the year against impairment.

2•6
2.15 Capital/shareholders' equity
2.15.1 Authorised capital
Authorised capital is the maximum amount of share capital that the Bank is authorised by its Memorandum and Articles of
Association.

2.15.2 Paid up capital

Paid up capital represents total amount of shareholder 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 a winding-up of the Bank, ordinary shareholders rank after all other shareholders and creditors and are fully
entitled to any residual proceeds of liquidation. Details are shown in Note-16.2.

2.15.3 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 (as amended 2023, was passed on 21.06.2023) until such reserve equal to its paid up capital together with

2.15.4 Non-controlling interest

Non-controlling interest is the equity in the subsidiaries that is not attributable, directly or indirectly to the parent. The Bank
attributes the profit or loss and each component of equity to the owners of the parent and to the non-controlling interests. When
the proportion of the equity held by non-controlling interests changes, the Bank adjusts the carrying amounts of the controlling
and non-controlling interests to reflect the changes in their relative interests in the subsidiaries.

2.15.5 Regulatory capital in line with Basel-HI

Till December 2014, as per Revised Regulatory Capital Framework in line with Basel III, full amount of general provision for
unclassified investments and off-balance sheet items & Mudaraba Subordinated Bond as capital gone-concern. However, as per
Guidelines on Risk Based Capital Adequacy (Revised Regulatory Capital Framework for Banks in line with Basel-Ill), BRPD
No.18, dated 21 December 2014, Assets Revaluation Reserve and Revaluation Reserve of Securities has gradually been deducted
in a transitional arrangement starting from January 2015 to December 2019 (20% each year). Accordingly regulatory capital for
the period has been calculated complying with all of these changes as per Revised Regulatory Capital Framework for Banks in
line with Basel-Ill.

2.16 Revenue recognition (IFRS-15)

(i) Investment income & revenue recognition
Profit on investments and deposits are recognized against the investment of fund under Mudaraba, Musharaka, Murabaha, Bai-
Muazzal and Hire Purchase etc. in line with related approved policy of the Board. Profit on investment ceases to be taken into
income when such investment accounts are classified. It is then kept in compensation/rent suspense account and the same is
accounted for on cash basis as and when recovered or de-classified as per related BRPD circular.

Fees and commission income are recognized when it is earned.

Income from investment in shares and securities is recognized on actual basis except Bangladesh Govt. Mudaraba Bond income
which is recognized on accrual basis.

Sharing of investment income

In case of Investment, Mudaraba fund gets preference over cost free fund. The investment income earned through deployment of

Mudaraba Fund is shared by Bank and the Mudaraba Depositors at the predetermined ratio fixed by the Bank.

24
(ii) Profit paid on deposits and other expenses
Profit paid on deposits and other expenses are recognized on accrual basis.
As per Mudaraba principle of Islamic Shari'ah, the Mudaraba Depositors are entitled to get minimum 65% of the investment
income earned through deployment of Mudaraba Fund as per weightage assigned to each type of Mudaraba Deposit. Moreover, in
some Mudaraba deposits, additional rate was allowed over the rate as per weightage. Mudaraba Depositors do not share any
income derived from various Banking services where the use of fund is not involved and any income derived from Investing
Bank's Equity and other Cost Free Fund. Al-Wadeeah Depositors do not share any income of the Bank.

Profit is paid/provided to Mudaraba Deposit accounts at provisional rate on half yearly/anniversary basis considering overall
growth, performance, and profitability of the Bank during the year. Final rates of profit of any accounting year are declared after
finalization of Shari'ah Inspection Report and certifying the Investment Income of the Bank by the Statutory Auditors.

2.17 Provision for taxation (IAS-12)

Current tax
Provision for income tax has been calculated as per Income Tax Act, 2023 as amended by the Finance Act 2023 considering all
applicable allowances and disallowances.

(b) Deferred tax

Recognition of deferred tax liabilities
The general principle in IAS 12 is that a deferred tax liability is recognised for all taxable temporary differences. There are three
exceptions to the requirement to recognise a deferred tax liability, as follows:
liabilities arising from initial recognition of goodwill, liabilities arising from the initial recognition of an asset/liability other than
in a business combination which, at the time of the transaction, does not affect either the accounting or the taxable profit,
liabilities arising from temporary differences associated with investments in subsidiaries, branches, and associates, and interests
in joint arrangements, but only to the extent that the entity is able to control the timing of the reversal of the differences and it is
probable that the reversal will not occur in the foreseeable future.

Recognition of deferred tax asset

A deferred tax asset is recognised for deductible temporary differences, unused tax losses and unused tax credits to the extent that

it is probable that taxable profit will be available against which the deductible temporary differences can be utilised, unless the

deferred tax asset arises from: the initial recognition of an asset or liability other than in a business combination which, at the time

of the transaction, does not affect accounting profit or taxable profit.

Deferred tax assets for deductible temporary differences arising from investments in subsidiaries, branches and associates, and

interests in joint arrangements, are only recognised to the extent that it is probable that the temporary difference will reverse in the

foreseeable future and that taxable profit will be available against which the temporary difference will be utilised.

The carrying amount of deferred tax assets are reviewed at the end of each reporting period and reduced to the extent that it is no

longer probable that sufficient taxable profit will be available to allow the benefit of part or all of that deferred tax asset to be

utilised. Any such reduction is subsequently reversed to the extent that it becomes probable that sufficient taxable profit will be

available.

A deferred tax asset is recognised for an unused tax loss carryforward or unused tax credit if, and only if, it is considered

probable that there will be sufficient future taxable profit against which the loss or credit carryforward can be utilised.

25
 Recognition of deferred tax asset
A deferred tax asset is recognised for deductible temporary differences, unused tax losses and unused tax credits to the extent that
it is probable that taxable profit will be available against which the deductible temporary differences can be utilised, unless the
deferred tax asset arises from: the initial recognition of an asset or liability other than in a business combination which, at the time
of the transaction, does not affect accounting profit or taxable profit.
Deferred tax assets for deductible temporary differences arising from investments in subsidiaries, branches and associates, and
interests in joint arrangements, are only recognised to the extent that it is probable that the temporary difference will reverse in the
foreseeable future and that taxable profit will be available against which the temporary difference will be utilised.
The carrying amount of deferred tax assets are reviewed at the end of each reporting period and reduced to the extent that it is no
longer probable that sufficient taxable profit will be available to allow the benefit of part or all of that deferred tax asset to be
utilised. Any such reduction is subsequently reversed to the extent that it becomes probable that sufficient taxable profit will be
available.
A deferred tax asset is recognised for an unused tax loss carryforward or unused tax credit if, and only if, it is considered
probable that there will be sufficient future taxable profit against which the loss or credit carryforward can be utilised.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realised

or the liability is settled, based on tax rates/laws that have been enacted or substantively enacted by the end of the reporting period
The Bank has accounted for deferred tax as per International Accounting Standard (IAS)-12, "Income Taxes".

2.18 Zakat fund

The Bank has created a Zakat Fund @ 2.58% for the period ended 31 December 2023 on reserve retained through out the year.
Hizri Calendar has been considered to calculate 2.5% of Zakat Fund. Since Hizri Calendar counts 11 days less than the English
Calendar, the percentage 2.5% represents equivalent to 2.58% of English Calendar. It is to be noted here that shareholders should
pay their individual Zakat based on face value (Taka- 10.00 per share) of their individual shareholding along with their other
zakatable assets.

2.19 Retirement benefits (I AS-19)

Defined contribution plans:

(a) Provident fund

A "Defined Contribution Plan" is a post-employment benefit plan under which an entity pays fixed contribution into a separate
entity and will have no legal constructive obligation to pay further amounts. Provident fund benefit is given to the eligible staffs
of the Bank in accordance with the rules of the provident fund duly recognized by the National Board of Revenue of Bangladesh.
The Bank operates a contributory provident fund duly approved by the Income Tax Authority. Both the employer and all eligible
employees contribute @ 10% of basic salary to this fund. Trustee board administers this fund. The fund is managed separately
from the Bank's assets, as per rules of the fund & section 399 of the Companies Act 1994.
b) Superannuation fund

The fund under the caption "Social Islami Bank PLC. (SIBPLC) Employees' Superannuation Fund" came into force from 01 July
1999. It was established to benefit the employees in several ways which includes death benefit, scholarship etc. All employees
contribute @I% of basic salary every month along with the same amount contribution by the Bank.

Defined benefit plans:

(a) Gratuity
As per service rules of the Bank, Every employee is entitled to get gratuity (i) 1 (one) month's last basic salary if he/she completes
seven years & above continuous service but below twelve years of service (ii) 1.5 month's last basic salaries if he/she completes
twelve years & above but below 20 years of service (iii) 2 months last basic salaries if he/she completes twenty years & above
service (iv) 2 month's last basic salaries in case of premature death during the tenure os active service multiplied by the number of
years completed in service. The Bank has complied with International Accounting Standard (IAS) -19, "Employee Benefits" and
necessary provision i.e @ 10.20% of basic salary of the regular employees have been made as per actuary valuation of Actuary
Bangladesh, Actuarial & Pension Consultants for the period ended 31 December 2023.
2.20 Reconciliation of inter Bank / branch transactions
Books of accounts with regard to inter Bank/branch transactions (In Bangladesh and outside Bangladesh) are reconciled and there
are no material differences that may affect the financial statements significantly.

4p,F I 404.

r pArtertti
26 kceuntants
2.21 Risk management
Today's most risky nature of Banking business has caused the Central Banks of every country much concerned about the risk
factors affecting the financial position of the Banks. In this connection every Central Banks have come forwarded to establish a
general framework to defeat the risk factors considering the laws of the land. Bangladesh Bank has also undertaken an overall
core-risk management project under which every Bank shall be bounded to the authoritative covenants to install risk management
system. Social Islami Bank Ltd. has established approved policies covering major areas such as (a) Investment Risk Management,
(b) Foreign Exchange Risk Management, (c) Asset Liability Management Risk (d) Money Laundering Risk (e) Internal Control &
Compliance Risk and (f) Information & Communication Technology Security Risk (g) Internal Audit (h) Fraud and Forgeries
according to the DOS circular no: 04 (08 October 2018) regarding 'Risk Management Guidelines' for Banks, Bank Companies
Act 1991 and other guidelines. of Bangladesh Bank.

In addition, the Bank is also following relevant Bangladesh Bank guidelines on risk based capital adequacy, stress testing and
managing the Banking risks in other core risk areas.

The Bank has established an independent Risk Management Division (RMD) as per DOS cirular no:04 (08 October 2018). RMD
consists of five desk i.e i) Investment Risk Related Desk; ii) Market Risk Related Desk; iii) Operational Risk Related Desk; iv)
Liquidity Risk Related Desk; v) Risk Research and Policy Desk and vi) Capital Adequacy Reporting Desk. Risk Management
Division also 'conducts stress testing as per DOS circular no: 01 (23 February 2011), for examining the Bank's capacity of
handling future shocks, as well as deals with all potential risks that might occur in future. .
The prime objective of the risk management is that the Bank takes well calculative business risks while safeguarding the Bank's
capital, its financial resources and profitability from various risks. In this context, the Bank took steps to implement the guidelines
of Bangladesh Bank as under:

(a) Investment risk management

Investment risk is one of the major risks faced by the Bank. This can be described as potential loss arising from the failure of a
counter party to perform as per contractual agreement with the Bank. The failure may results from unwillingness of the counter
party or decline of financial condition. Therefore, the Bank's investment risk management activities have been designed to
address all these issues.

The Bank has segregated duties of the Officers / Executives involved in investment related activities. A separate Corporate
Division has been formed at Head Office, which is entrusted with the duties of maintaining effective relationship with the
customer, marketing of credit products, exploring new business opportunities etc. Moreover, investment approval, administration,
monitoring and recovery functions have been segregated. For this purpose, three separate units have been formed within the
Credit Division. These are (a) Investment Risk Management Unit, (b) Investment Administration Unit and (c) Investment
Monitoring & Recovery Unit. Investment Risk Management Unit is entrusted with the duties of maintaining asset quality,
assessing risk in lending to a particular customer, sanctioning credit, formulating policy / strategy for lending operation etc.

A thorough assessment is done before sanctioning of investment facility at Investment Risk Management Unit. The risk
assessment includes borrower risk analysis, financial analysis, industry analysis, historical performance of the customer, security
of the proposed credit facility etc. The assessment process starts at Corporate Division by the Relationship Manager/ Officer and
ends at Investment Risk Management Unit when individual executives. Proposal beyond their delegation are approved / declined
by the Executive Committee and! or the Management.

In determining single borrower! large investment limit, the Bangladesh Bank instructions are strictly followed. Internal audit is
conducted on periodical interval to ensure compliance of Bank's and regulatory policies. Investments are classified as per
Bangladesh Bank's guidelines.

(b) Foreign exchange risk management

Foreign Exchange risk is defined as the potential change in earnings arising due to change in market prices. The foreign exchange
risk of the Bank is minimal as all the transactions are carried out on behalf of the customers against underlying UC commitments
and other remittance of single borrower limit shown in note.
International Department independently conducts the transactions relating to foreign exchange and is responSIBPLCe for
verification of the deals and passing of their entries in the books of account. All foreign exchange transactions are revalued at
Mark-to-market rate as determined by Bangladesh Bank at the month end. All NOSTRO Accounts are reconciled on monthly
basis and the management for its settlement reviews outstanding entry beyond 30 days.

21
(c) Asset liability management risk
Asset Liability Management (ALM) has been defined as a planned, structured and systematic process of managing the asset and
liability with a view to lead the Bank to a balanced and sustainable growth through minimizing various business risk factors -
market risk and liquidity risk. According to the Bangladesh Bank guidelines and considering the most practical aspects of the
Bank, an approved policy manual on ALM has been prepared so that it could be followed consistently every sphere of the
management. To support the ALM process, the Bank has established a committee called "Asset Liability Committee (ALCO)"
headed by the Managing Director and holds meeting at least one in every month. ALM Desk, an exclusive functional and
operational desk for the asset liability management, is embodied herewith the ALCO to function under the direct control of
Financial Administration Division (FAD).

ALCO reviews the liquidity requirement of the Bank, the maturity of assets and liabilities, deposit and lending, pricing strategy
and the liquidity contingency plan at the threshold of stress liquidity situation. Besides that monitoring and analyzing of
significant volatility in net investment income, investment value and exchange earnings etc. are the common and regular job of the
ALM desk.
(d) Money laundering risk
Social Islami Bank PLC. (SIBPLC) has framed an approved Money Laundering Prevention Policy Guideline so that it could be
sufficient enough to protect the Bank from tribulations of money laundering.

As per Money Laundering Prevention Act, 2012 and Money Laundering Prevention circular, a Central Compliance Unit (CCU)
has been formed at Head Office in SIBPLC and a designated person has been nominated to supply any information if required
and report any abnormal and suspicious transactions to Bangladesh Bank through CCU. Chief Anti Money Laundering
Compliance Officer (CAMALCO) has been designated at head office and Branch Anti Money Laundering Compliance Officers
(BAMALCO) has been nominated at branches. The second man of the sixty-four branches of SIBPLC has been complying the
responsibility for their respective branches as Branch Anti Money Laundering Compliance Officers (BAMALCO) as per the
direction of Bangladesh Bank.

Know Your Customer (KYC) profile, Risk Rating and Assessment (RRA) profile and Transaction Profile (TP) have been
introduced as per the direction of Bangladesh Bank. These profiles facilitate and ease the KYC procedures, risk categorization,
transaction monitoring process, suspicious activity reporting process, self-assessment process, independent procedures testing
system etc. Proper record keeping procedure has been established also.

The action plan regarding the KYC procedures of those accounts, which opened before 30-04-2002 already has been sent to the
Bangladesh Bank. The branches, which are liable to act in accordance with this action plan, has been complying it properly and
vigorously.

Various types of statements such as Quarterly STR, Quarterly KYC statement for legacy accounts, Bi-monthly statements etc has
been sent to the Bangladesh Bank properly. " FIU Reporting System " Version-1.0.3 Software has been installed all of the
branches as per the direction of central Bank. As a result, the soft copy of Cash Transaction Report (CTR) and Suspicious
Transaction Report (STR) has been sent to Bangladesh Bank properly in due time.
The training procedure has been conforming as per the action plan, which was given to Bangladesh Bank. It provides significant
role to develop and to aware the staffs of SIBPLC about Anti Money Laundering. The management of the Bank is committed to
train all of its workforces regarding anti money laundering.
(e) Internal control and compliance risk
Internal controls ensure systematic and orderly flow of various operational activities within the organization. Now a day in the
biggest and complex business environment, compliance becomes one of the major concern to the corporate being major risk
involved in non-compliance of statutory requirements and operational procedures. To protect and safeguard the Bank form any
means of fraud and error as well as loss - Social Islami Bank has introduced the "Internal control and Compliance guideline and
also established a separate department called "Internal Control and Compliance Department (ICCD)" at Head Office staffed with
some experienced senior Banker rest with the power and duties to train the employees of the Bank, give direction, monitor, audit
and establish control on day to day operational procedures and statutory and non-statutory compliances.
ICCD collects different periodical reports, departmental control function check list etc. for documentation and also undertakes
periodical and special audit of the branches and departments at Head Office for review of the operation and compliance of
statutory requirements and the Board Audit Committee reviews the reports.

(I) Operational risk

Operational risk can be defined as the possibilities of losses resulting from inadequacy or failed internal processes, systems and
people or from external events.
Operational risk includes legal and regulatory risk, business process and change risk, fiduciary or disclosure breaches, technology
failure, financial crime and environmental risk. It exists in some form in every Bank business and function. Operational risk can
not only result in financial loss, but also regulatory sanctions and damage to the Bank's reputation. SIBPLC is successful at
Tftana,ging operational risk with a view to safeguarding client assets and preserving shareholder value.

28
 SIBPLC manages operational risks in the following manner:

I. Risks are identified with reference to the relevant policy manuals, processes, and practices;
II. Departmental Control Function Check List (DCFCL) is in place for evaluation of control;
III. Review of safety and control measures of premises and equipments;
v Management of technological and information security risks; and
V. Ensuring the maintenance of the Bank's business continuity plan (BCP) and crisis management policy.

(g) Legal risks

In SIBPLC, legal risks are covered by recognizing potential losses from litigation or posSIBPLCe litigation at an early stage and
by formulating solutions for reducing, restricting and avoiding such risks and creating adequate provision there- against.
(h) Business risk
Business risk covers the risk of losses arising from lower non-interest income and higher, expenses from the budgeted amount.
The business risk is resulted from the market condition, greater customer expectation and or technological development that may
change compared to the assumptions made at the time of planning.
Business risk in SIBPLC is managed by setting clear targets for specific business units, in terms of business volume, income, cost,
cost-income ratio, quality of assets etc. with an ongoing process of continuous improvement.

(i) Reputational risk

Reputational risk is defined as the risk of losses, falling business volume or income as well as reduced value of the Company
arising from business events that may reduce the confidence of the customers & clients, shareholders, investors, counterparties,
business partners, credit rating agencies, regulators and general public in SIBPLC.

The branches and operational divisions are directly responSIBPLCe for reputational risks arising from their business operations.
Reputational risks may also arise from a deficiency in managing other risks. All risk must therefore be managed effectively in
order to uphold the Bank's reputation. The management ensures that SIBPLC is aware of any changes in market perceptions as
soon as posSIBPLCe. Accordingly, all business policies and transactions are subjected to careful consideration. SIBPLC takes
necessary precautions to avoid business policies and transactions that may result in significant tax, legal or environmental risks.
Reputational risk is also factored into major credit decisions that may lead to credit proposal being declined.

(i) Compliance risk

The success of SIBPLC is largely dependent on the trust and confidence of our existing and potential customers, our shareholders,
our staff, our regulators and the general public in our integrity and ethical standard. The confidence largely depends on meticulous
compliance with applicable legal and regulatory requirements and internal policies of SIBPLC. The confidence also depends on
conformity with generally accepted market norms and standards in our business operations. The Board of Directors is primarily
responSIBPLCe for compliance with all applicable norms and regulations. The Board discharges its responsibilities itself and
through delegation of authorities to Executive Committee, Audit Committee and Risk Management Committee of the Board. The
objective is to identify any compliance risks at an early stage that may undermine the integrity and the success of SIBPLC and to
mitigate the risks in most appropriate way.

(k) Information and communication technology security risk

According to the latest requirement of the Bangladesh Bank on Core Risk Management, 1CT policy guideline has been newly
introduced at Social Islami Bank. The prime objective of such guideline is to protect data properties of the Banks from any means
of loss, unauthorized use, forgery and destruction as well as documentation of all ICT related tasks to reduce man dependency and
increase process dependency. According to this guideline, ICT department responses, monitors, trains and co-ordinates the total
IT matter with other departments and branches so that man and machine could effectively co-opt on timely fashion. The ICT
department ensures necessary guidelines / instructions to the Departments / Branches and monitors status of implementation
strictly.

(I) Internal audit

The Bank initiates internal audit of the branches and head office divisions on a periodical basis, concurrent basis and surprise
inspection is also done to check the compliance status of the cost centers of the Bank. The internal audit is supervised under
1CCD and a separate division named 'Board Audit Cell (BAC)' also conducts internal audit under supervision and direct authority
of Board Audit Committee. This BAC directly reports to the Chairman of Board Audit Committee. This way a strong internal
audit of the cost centers as well as of Head Office Divisions are conducted to ensure all related compliance.
(m) Fraud and forgeries
Fraud and Forgeries are a critical dimension, the Banking industry is facing now a days. In order to safeguard the Bank from all
probable fraud and forgeries that may occur in any respect, the Bank has taken all posSIBPLCe safety security measures that are
undertaken under direct supervision of ICCD. Concurrent audit, internal audit, Board audit etc. are done periodically along with
surprise audit from time to time. Moreover, there are a lot of safety measures initiated at the branch level also. The core Banking
solution Ababil is desiged to prevent IT related fraud and forgeries. Few instances of fraud and forgeries have b entified
overthelteriod which has been duly reported.

29
 Additional risks required to be addressed under new regulatory requirements

(n) Environmental & social risk

As one of the shariah based Banks of Bangladesh, Social lslami Bank PLC. (SIBPLC) have adopted Environmental & Social Risk
Management (ESRM) System as one of its integral parts of Investment Risk Assessment to compute environmental & social risks
from our fmancial footprints. SIBPLC is one of the Banks operating in Bangladesh to add "Environmental & Social Management
System (ESMS)" within its framework, a global standard to minimize environmental & social risks from the organisational
activities. Risks associated with E&S Risk in Credit/Investment Management includes 1. Credit Risk, 2.Legal Risk, 3.
Operational Risk, 4. Liquidity Risk, 5. Reputational Risk etc. Applicability of the guideline includes for investments disbursed to
the sectors Agriculture, SME, Corporate Finance, Project Finance and Trade, Retail & Microfinace. All national regulations
pertaining to E&S governance is applicable while carrying out E&S due diligence of a particular transaction. This means all
relevant E&S permits, consents, licenses, and monitoring of E&S parameters as per the national regulations are to be considered
as mandatory compliance requirements for evaluation of a investment application. If clients have management systems in place as
per international frameworks such as ISO 14001 for environmental management, OHSAS 18001 for occupational health and
safety, SA8000 for socially acceptable practices in the workplace then it is considered as good practices. Adherence to IFC
Performance Standards is considered in case of large project financing as a good practice and optional requirement.

2.22 Earnings per share (IAS-33)

Earning Per Share (EPS) has been computed by dividing the basic earning by the weighted average number of ordinary shares
outstanding at the end of the year as per IAS 33 Earning Per Share

Basic earnings

This represents earnings for the year attributable to ordinary shareholders. Net profit after tax less preference dividend has been
considered as fully attributable to the ordinary shareholders.

Weighted average number of ordinary shares outstanding during the year

This represents the numbe of ordinary shares outstanding at the beginning of the year plus the number of ordinary shares issued
during the year multipied by a time weighted factor. The time weighting factor is the number of days the specific shares are
outstanding as a protion of the total number of days in the year.
The basis of computation of number of shares is in line with the provision of IAS 33 Earning 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. In contrast, other shares were issued
against consideration in cash or in kind, and accordingly there is an increase in resource generating new earnings. Therefore, the
total number of shares issued in 2023 has been multipied by a time weighting factor which is the number of days the specific
shares were outstanding as a proportion of total number of days in the period.

2.23 Events after reporting period

As per IAS - 10 "Events after the Reporting Period" events after the reporting period are those events, favorable and unfavorable,
that occur between the end of the reporting period and the date when the financial statements are authorized for issue. Two types
of event can be identified:

(a) Adjusting events after the reporting period which provide evidence of conditions which existed at the end of the reporting
period; and
(b) Non adjusting events after the reporting period, are those that are indicative of conditions that arose after the reporting period.

The details about the events after reporting period is shown at note - 50.

2.24 Segment reporting

As per IFRS 8 "Operating Segments", an operating segment is a component of an entity:

(i) That engages in business activities from which it may earn revenues and incur expenses (include revenues and expenses
(ii) 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
(iii) For which discrete financial information is available.

The Bank identifies segment based on its business segment as well as its subsidiaries. Business segment comprises SME, Retail,
Corporate and Treasury under Islamic Banking.
The Bank reviews the segments at the end of each reporting period to identify which of its segments are reportable and disclose
the related information for those reportable segments accordingly.

30
2.25 Asset retirement obligations (ARO)
Asset retirement obligations (ARO) are recognized when there is a legal or constructive obligation as a result of past event for
dismantling and removing an item of property, plant and equipment and restoring the site on which the item is located and it is
probable that an outflow of resources will be required to settle the obligation, and a reliable estimate of the amount of obligation
can be made. A corresponding amount equivalent to the provision is also recognized as part of the cost of the related property,
plant and equipment. The amount recognized is the estimated cost of decommissioning, discounted to its present value. Changes
in the estimated timing of decommissioning or decommissioning cost estimates are dealt with prospectively by recording an
adjustment to the provision, and a corresponding adjustment to property, plant and equipment. The periodic unwinding of the
discount is recognized in the statement of profit or loss as a finance cost as it occurs.

2.26 Off-shore Banking Units (OBU)

The Off-shore Banking Units maintain its accounting records in USD from which accounts are prepared according to the Bank
Company Act, 1991 as amended, International Financial Reporting Standards (IFRSs) and other applicable directives issued by
Bangladesh Bank. All the financial statements relating to the OBU has already been accounted for in the separate financial
statements of the Bank (considering necessary adjustments relating to intra-units transactions and balances). Along with that, this
financial statements relating to OBU only is prepared and disclosed in compliance with the requirements of Bangladesh Bank.

2.27 Dividend payments

Final dividend is recognized when it is approved by the shareholders in Annual General Meeting (AGM). The proposed dividend
for the year 2023, therefore, has not been recognized as a liability however disclosed in the balance sheet in accordance with IAS-
10 "Events after the Reporting Period". Dividend payable to the Bank's shareholders is recognized as a liability and deducted
from the shareholders' equity in the period in which the shareholders' right to receive the dividend is established.

2.28 Other earnings

Profit received from the balances held with foreign banks and from foreign currency clearing account with Bangladesh Bank are
not credited to income, since it is not permisSIBPLCe as per Shari'ah. These are expended for charitable purposes after payment
of corporate income tax thereon.

nu Inter-branch transactions
Transactions with regard to inter-branches and units are reconciled regularly and, efforts are taken to minimize the unreconciled
entries at the end of the year.

2.30 Regulatory and legal compliance

Among others, the Bank complied with the requirements of the following circular, rules and regulations:
a) The Bank Companies Act, 1991 as amended 2023, was passed on 21 June 2023
b) The Companies Act, 1994
c) BRPD Circular No. 14 dated 25.06.2003 and "Guidelines for Islamic Banking issued by Bangladesh Bank through BRPD
Circular No. 15 dated 09.11.2009
d) Other circulars, rules and regulations issued by Bangladesh Bank from time to time
c) The Securities and Exchange Rules, 2020 as amended

0 The Securities and Exchange Ordinance, 1969

g) The Securities and Exchange Commission Act, 1993
h) Income Tax Act, 2023 as amended
j) Value Added Tax and Supplementary Duty Act, 2012, Value Added Tax Rules, 2016 as amended
j) Standards issued by AAOIFI
k) The Stamp Act-1899
1) The Customs Act-1969
in) Dhaka Stock Exchange Limited (DSE), Chittagong Stock Exchange (CSE) and Central Depository Bangladesh Limited
(CDBL) rules and regulations
n) The Money Laundering Prevention Act, 2012
o) The Anti Terrorism (Amendment) Act, 2012 etc.
--The Bank identifies segment based on its business segment as well as its subsidiaries. Business segment comprises SME, Retail,
rate and Treasury under Islamic Banking. glQue,o,
nk reviews the segments at the end of each reporting period to identify hich of its segments are reportable a I tclos eced.N ..
ed infonnation for those reportable segments accordingly.
31
41rt..
2.31 Workers profit participation fund and welfare fund
SRO-336-AIN/2010 dated 5-10-2010 issued by the 'Ministry of Labour and Employment' declares the status of business of
certain institutions and companies along with Bank & insurance companies as "Industrial Undertakings" for the purposes of
Chapter-XV of the Bangladesh Labour Act, 2006 (as amended up to 2013) which deals with the workers' participation in
Company's profit by way of 'Workers Participation Fund' and 'Welfare Fund'. This Act requires the "Industrial Undertakings" to
maintain provision for workers' profit participation fund @ 5% on net profit. Since this requirement contradicts with the 'Section
11' of the 'Bank Company Act 1991 (as amended up to 2018)', Banks in Bangladesh took up the issue collectively and sought
opinion from 'Association of Bankers Bangladesh Limited (ABB)' on the same. ABB wrote a letter to the 'Ministry of Finance'
of Government of People's Republic of Bangladesh on 09.03.2016 to draw attention of the honorable Finance Minister regarding
relevance and applicability of Chapter XV of the Bangladesh Labour Act, 2006 (as amended up to 2013) for Bank Companies
and to obtain a direction on the issue. The 'Ministry of Finance' revealed their opinion that WPPF should not be relevant for Bank
Companies and therefore, it should not be applied there. They also sought for an opinion on this issue from Bangladesh Bank.
Subsequently, Bangladesh Bank agreed on all the logics and legal opinion collected by the ABB and expressed their consensus
with them on 29.11.2016. In this backdrop, the 'Ministry of Finance' has given their instruction, vide letter no.
53.00.0000.311.22.002.17.130 dated 14.02.2017, for not applying Chapter XV of the Bangladesh Labour Act, 2006 (as amended
up to 2013) in Bank Companies. Therefore, no provision in this regard has been made in the financial statements for the year
ended on December 31, 2023.

2.32 Use of estimates and judgments

The preparation of financial statements 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, and disclosure
requirements for contingent assets and liabilities during and at the date of the financial statements.

Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions of accounting estimates are recognized in the period in which the estimate is revised and in any future periods affected.

Information about significant areas of estimation uncertainty and critical judgments in applying accounting policies that have the
most significant effect on the amounts recognized in the financial statements include depreciation, amortization, impairment, post
employment benefits liabilities, accruals, taxation and provision.

2.33 Related party transactions

Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise
signifrcant influence over the other party in making financial and operating decisions. Parties are also considered to be related
ifthey are subject to common control or common significant influence.Related party transaction is a transfer of resources, services
or obligations between related parties, regardless of whether a price is charged as per IAS 24 "Related Party Disclosures",
Bangladesh Bank & BSEC guidelines. Details ofthe related party transactions have been disclosed in Note - 49.

32
 31.12.2023 31.12.2022
Taka Taka
3 Cash
In hand:
In local currency 4;242,799,553 4,403,419,591
In foreign currencies 28,012,570 19,915,993
ATM balance 626,587,220 412,248,250
4,897,399,344 4,835,583,834

In Foreign Currencies
Foreign Currency Amount in FC Exchange Rate
USD 138,223 110.0000 15,204,530 8,495,145
EURO 76,665 122.2320 9,370,916 9,933,242
GBP 23,950 140.8550 3,373,477 1,484,859
S. Riyal 2,170 29.3302 63,647 2,747
28,012,570 19,915,993
3(a) Consolidated balance of cash in hand
Social Islami Bank PLC. 4,897,399,344 4,835,583,834
Cash in hand ofSubsidiary companies 381,517 572,098
SIBL Securities Limited 34,538 127,146
SIBL Investment Limited 346,979 444,952
4,897,780,861 4,836,155,932
3.1 Balance with Bangladesh Bank and its agent Bank (Sonali Bank)
Balance with Bangladesh Bank (Note-3.1.1) 29,007,127,569 21,710,736,536
Balance with Sonali Bank (as an agent ofBB) (Note-3.1.2) 253,717,981 376,015,487
29,260,845,550 22,086,752,023
3.1.1 Balance with Bangladesh Bank (Including foreign currencies)
In local currency 28,620,130,192 19,283,301,315
In foreign currencies 386,997,377 2,427,435,221
29,007,127,569 21,710,736,536
3.1.2 Balance with Sonali Bank (as an agent of Bangladesh Bank)

In local currency 253,717,981 376,015,487

3.2 Cash Reserve Requirement (CRR) and Statutory Liquidity Ratio (SLR)
Cash Reserve Requirement (CRR) and Statutory Liquidity Ratio (SLR) have been calculated and maintained in accordance with the clause (1) of Article 36 of
Bangladesh Bank Order, 1972 (as amended upto 2003) and clause (I) of Section 33 of the Bank Companies Act, 1991 (as amended upto 2013) respectively
and subsequent DOS circular no: 05/2008, DOS circular letter no.05/2009, DOS circular letter no.21/2009 DOS circular letter no.01, dated: 19/01/2014,
MPD Circular no. 01, dated 23/06/2014 and MPD Circular no. 01, dated 03/04/2018.

According to latest MPD Circular no. 03, dated 09/04/2020, the statutory cash reserve requirement (CRR) on Bank's time and demand liabilities @3.50% on
daily basis and @4.00% on Bi-weekly average basis has been calculated and maintained with Bangladesh Bank (BB) in current account and @5.5% statutory
liquidity ratio (SLR) on the same liabilities has also been maintained in the form of BD Govt. Islamic Bond including FC (Foreign Currency) balances with
Bangladesh Bank used in BDT, Cash in hand, balance with Sonali Bank as agent of BB, balance with Islamic Refinance Fund A/C and daily excess reserve of
CRR maintained on a Bi-weekly average requirement. Both the reserves are maintained by the Bank in excess of the statutory requirements, as shown below:

Cash Reserve Requirement (CRR): 4.00% for DBO and 2.00% for OBO (on daily basis) of average Demand and Time
3.3
Liabilities (As per Circular Ref. No: DOS(SR)1153/120(P)/2023-2638, Dated:07-06-2023)

Required Reserve 13,791,730,000 13,235,108,000

Actual Reserve held as per GL balance (in local currency) 28,620,130,192 19,283,301,315
Excess Reserve 14,828,400,192 6,048,193,315
=MO

3.4 Statutory Liquidity Ratio (SLR)

Required Reserve 19,010,344,000 18,424,316,000
Actual Reserve held as per GL balance (Note- 3.5) 34,768,847,517 26,049,122,636
Surplus 15,758,503,517 7,624,806,636

3.5 Held for Statutory Liquidity Ratio

Cash in hand (Note- 3) 4,897,399,344 4,835,583,834
Balance with Bangladesh Bank and its Agent Banks (Note-3.1)
Balance with Sonali Bank (as an agent of BB) (Note-3.1.2) 253,717,981 376,015,487
Excess reserve of CRR (Note-3.4) 14,828,400,192 6,048,193,315
Balance with Islamic Refinance Fund (Note-6) 250,000,000 250,000,000
Bangladesh Govt. Islamic Bond (Note- 6) 14,539,330,000 14,539,330,000
34,768,847,517 26,049,122,636
4 Balance with Other Banks and Financial Institutions

(Other than Mudaraba Term Deposit)

adesh (Note -4.1) 4,347,758,950 3,226,074,618
gladesh (Note- 4.2) cX\KF ti6‘4)
1,997,889,368 2,520,897,414
6,345,648,318 5,746,972,032
;Meg -m

33
494 *
 31.12.2023 31.12.2022
Taka Taka
4(a) Consolidated balance of other Banks and Financial Institutions
In Bangladesh
Social Islami Bank Limited 4,347,758,950 3,226,074,618
Add: Account Balance ofsubsidiaries ofSIBL with SIBL Principal Branch 538,802,827 695,327,365
SIBL Securities Limited (Current account and MTDR) 479,216,741 589,734,614
SIBL Investment Limited (Current account and SND) 59,586,086 105,592,751

4,886,561,778 3,921,401,983

Less: Inter Company balance eliminated 538,802,827 695,327,365

SIBL Securities Limited (Current account and MTDR) 479,216,741 589,734,614
SIBL Investment Limited (Current account and SND) 59,586,086 105,592,751

Add: Account Balance ofsubsidiaries ofSIBL with other Banks andfinancial institutions 24,532 24,616

SIBL Securities Limited 24,532 24,616

SIBL Investment Limited
Consolidated balance with Banks and Financial Institutions 4,347,783,482 3,226,099,2L

The balances are held with the 'Principal Branch' of SIBPLC bearing current account no: 0002-13300056882 and 0002-13300057058 respectively.
4.1 In Bangladesh
a) Current Account
Islami Bank Bangladesh PLC. 5,065,118 6,083,326
Sonali Bank PLC. 8,777,080 40,786,634
Agrani Bank PLC. 21,957 28,625
Pubali Bank PLC. 6,952 86,452
Rupali Bank PLC. 8,072,614 32,724,418
Trust Bank PLC. (ATM settlement Account) 2,028,371 139,747,259
Standard Chartered Bank (ATM settlement Account) 8,604,760 46,045,979
32,576,851 265,502,691
b) Mudaraba Short Notice Deposits
Al- Arafah Islami Bank PLC. 78,380,988 8,557,312
ICB Islami Bank PLC. 8,460 8,575
Shahjalal Islami Bank PLC. 8,309,866 20,561,472
Prime Bank PLC. (Islami Banking Branch) 1,282,887 1,262,141
Bank Asia PLC. (Islami Banking Branch) 601,789 598,743
Islami Bank Bangladesh PLC. 515,315,866 170,606,605
Jamuna Bank PLC. (Islami Banking Branch) 568,215 565,376
Pubali Bank PLC. (Islami Banking Branch) 192,432,263 123,976,102
Exim Bank PLC. .9,739,923 9,117,940
Janata Bank PLC. 17,326 18,050
Southest Bank PLC. 3,407,267 3,385,622
AB Bank PLC. 988,509 1,018,128
The City Bank PLC. 9,795 10,808
Agrani Bank PLC. 2,794,922 108,920,375
Rupali Bank PLC. 2,099,655
First Security Islami Bank PIC. 1,375,421,523 504,213,841
Global Islami Bank PLC. 746,961,377 703,300,040
Union Bank PLC. 1,376,841,469 1,304,450,796
4,315,182,099 2,960,571,927
ci Mudaraba Savings Deposits
Total 4,347,758,950 3,226,074,618

31.12.2023
4.2 Outside Bangladesh (NOSTRO Account)

Current Account with Currency F.C. Amount Bag

1 SCB, MUMBAI ACUD 273,520.88 110.0000 30,087,297
2 SUMMIT Bank, KARACHI ACUD 23,784.82 110.0000 2,616,330
3 SONALI Bank, KOLKATA ACUD 252,777.60 110.0000 27,805,536
4 MASHREQ Bank, MUMBAI ACUD 481,853.83 110.0000 53,003,921
5 NEPAL BANGLADESH Bank ACUD 284,883.36 110.0000 31,337,170
6 Bank OF BHUTAN, PHUENTSHOLING ACUD 259,211.82 110.0000 28,513,300
7 UNITED Bank OF INDIA ACUD 414,146.06 110.0000 45,556,067
8 AB Bank, MUMBAI ACUD 474,005.98 110.0000 52,140,658
9 MEEZAN Bank LIMITED ACUD 87,084.71 110.0000 9,579,318
10 MCB Bank,ICARACHI,PAKISTAN ACUD 394.50 110.0000 43,395
11 AXIS Bank LIMITED ACUD 93,419.18 110.0000 10,276,110
12 HDFC Bank LTD., MUMBAI ACUD 1,094,606.73 110.0000 120,406,740
13 ICIC Bank, Mumbai, India ACUD 326,629.00 110.0000 35,929,190
14 MASHREQ Bank, NEW YORK, (OBU) USD 925,580.83 110.0000 101,813,891
I MASHREQ Bank PSC, NEW YORK, USA USD 233,253.97 110.0000 25,657,937
B, NY, USA USD 10,708,807.9 110.0000 1,177,968,878
balance carried 1.752,735,738

34
 31.12.2023

Currency F.C. Amount Rate Taka

Current Account with
balance brought forward 1,752,735,738
17 KOREA EXCH. Bank,KOREA USD 22,221.97 110.0000 2,444,417
18 HABIB AMERICAN Bank USD 497,674.71 110.0000 54,744,218
19 COMMERZ Bank AG, FRANKFURT USD 51,184.33 110.0000 5,630,276
20 Zhejiang Commercial Bank, China USD 413,349.60 110.0000 45,468,456
21 COMMERZ Bank AG, CHF CHF 1,831.87 130.8589 239,716
22 ABU DHABI ISLAMI BANK, UAE AED 450,801.00 29.9458 13,499,597
23 Zhejiang Commercial Bank, China CNY 3,437,066.14 15.4503 53,103,703
24 MASHREQ Bank, PSC MUMBAI ACU EURO 497.92 122.2320 60,862
25 SCB, FRANKFURT EURO 138,994.83 122.2320 16,989,616
26 COMMERZ Bank AG, FRANKFURT EURO 39,632.36 122.2320 4,844,343
27 SCB, LONDON, UK GBP 111,777.68 140.8550 15,744,445
28 SCB, TOKYO WY 10,294,511.00 0.7785 8,014,277
29 RIYAD BANK RIYAL 829,121.65 29.3302 24,318,304
30 Bank AL JAZIRA RIVAL 1,752.50 29.3302 51,401
Total 1,997,889,368

Currency wise Distribution: 31.12.2023 31.12.2022 31.12,2023 31.12.2022

Foreign Currency Composition Composition Taka Taka
USD/ACU 93.15% 80.04% 1,861,023,105 2,017,843,224
CHF 0.01% 0.12% 239,716 2,909,784
AED 0.68% 0.64% 13,499,597 16,069,246
CNY 2.66% 3.99% 53,103,703 100,654,380
GBP 0.79% 0.33% 15,744,445 8,292,899
EUR 1.10% 12.55% 21,894,820 316,471,021
YEN 0.40% 0.16% 8,014,277 4,114,088
RIYAL 1.22% 2.16% 24,369,705 54,542,772
100% 100% 1,997,889,368 2,520,897,414

Please see 'Annexure-C' for details comparative statement of 31.12.2023 & 31.12.2022 of foreign currency amount and rate.

4.3 Maturity-wise groupings of balance with other

Banks and Financial Institutions (Both in Bangladesh and outside Bangladesh)
On Demand 2,030,466,220 2,786,400,106
Not more than 3 months 4,315,182,099 2,960,571,927
Over 3 months but not more than 1 year
Over 1 year but not more than 5 years
More than 5 years
6,345,648,318 5,746,972,032
5 Placement with Banks & other Financial Institutions
Placement with Banks (Note-5.1) 4,636,293,194 2,436,293,194
Placement with other Financial Institutions (Note-5.2 & 5.3) 5,325,000,000 4,386,680,600
9,961,293,194 6,822,973,794
5.1 Mudaraba Term Deposits with Banks
ICB Islamic Bank PLC. 186,293,194 186,293,194
Union Bank PLC. 3,250,000,000 1,800,000,000
Bangladesh Commerce Bank Limited 450,000,000
First Security Islami Bank PLC. 1,000,000,000
Global Islami Bank PLC. 200,000,000
4,636,293,194 2,436,293,194

5.2 Mudaraba Term Deposits with Other Financial Institutions

IPDC Finance Limited. 300,000,000 300,000,000
International Leasing & Financial Services Ltd. 355,000,000 355,000,000
Union Capital Limited 200,000,000 200,000,000
Bay Leasing & Investment Ltd. 10,000,000 15,000,000
Fas Finance and Investment Limited 300,000,000 300,000,000
First Finance Limited 100,000,000 100,000,000
Islamic Finance & Investment Ltd. 400,000,000 400,000,000
AVIVA Finance Limited/Realiance 1,780,000,000 1,680,000,000
Investment Corporation of BD Ltd. (1CB) 780,000,000 830,000,000
4,225,000,000 4,180,000,000

5.3 FC Placement with Banks & other Financial Institutions

Islami Bank PLC. 206,680,600
Union Bank PLC. 1,100,000,000
1,100,000,000 206,680,600

35
 31.12.2023 31.12.2022
Taka Taka
5.4 Maturity-wise groupings of placement with
Banks and other Financial Institutions
On Demand 4,695,000,000 3,650,000,000
Not more than 3 months 4,155,000,000 2,761,680,600
More than 3 months but less than 1 year 925,000,000 225,000,000
More than 1 year but less than 5 years 186,293,194 186,293,194
More than 5 years
9, 169„
293 194 6,822,973794

6 Investment in Shares & Securities

Government
Government Bond (Islamic Investment Bond) (Note 6.1) 1,000,000,000 1,000,000,000
7 Years Treasury BOND (5%) 319,300,000 319,300,000
7 Years Treasury BOND (0%) 123,000,000 123,000,000
Investment in BD GOVT. Investment Sukuk 13,097,030,000 13,097,030,000
14,539,330,000 14,539,330,000
BD Government Islamic Refinance Fund 250,000,000 250,000,000
14,789,330,000 14,789,330,000
Others
Investment in Shares, Quoted (Note 6.2 & 6.3) 1,773,662,573 1,597,199,412
Investment in Shares, Unquoted/bond (Note 6.4 & 6.5) 8,780,727,751 7,280,727,751
10,554,390,324 8,877,927,163

Fair value adjustment through profit or loss (FVTPL)

Value of Investment in Shares and securities, Others 10,554,390,324 8,877,927,163

Grand Total 25,343,720,324 23,667,257,163

Maturity-wise Grouping of Investment in Securities:

Upto one month 1,773,662,573 1,597,199,412
Not more than 3 months 1,250,000,000 1,250,000,000
Over 3 months but not more than 1 year 400,000,000 790,000,000
Over 1 year but not more than 5 years 14,439,357,751 15,430,057,751
More than 5 years 7,480,700,000 4,600,000,000
25,343,720,324 23,667,257,163

6(a) Consolidated Investment in Shares and Securities

Social Islami Bank PLC.
Government
Investment in Government Islamic Bond 1,000,000,000 1,000,000,000
BD Government Islamic Refinance Fund 250,000,000 250,000,000
7 Years Treasury BOND (5%) 319,300,000 319,300,000
7 Years Treasury BOND (0%) 123,000,000 123,000,000
Investment in BD GOVT. Investment Sukuk 13,097,030,000 13,097,030,000
14,789,330,000 14,789,330,000

Others sectors 10,554,390,324 8,877,927,163

Add: Investment in Shares and Securities by subsidiary companies 492,476,237 428,316,464
SIBL Securities Limited • 280,792,9.35 266,20,648
SIBL Investment Limited 211,683,302 162,110,816

11,046,866,560 9,306,243,627
Total consolidated balance of Investment in shares and securities 25,836,196,560 24,095,573,627

6.1 Bangladesh Bank introduced a new type of investment opportunity solely for the purpose of Shariah Banks in the year 2005 being inherent limitation on the
part of Shariah Compliant Banks to take part in buying and selling of treasury bill etc as a very common form of treasury management. The fund has been
operated under Mudaraba Principle and are being used as a part of SLR (Statutory Liquidity Requirement) vide Bangladesh Bank Circular Letter ref. no:
AMA/AUSOBI/SANCHAY/S-03/2004/262 dated September 2,2004.

The mobilized fund from Islamic Bond is invested by Bangladesh Bank and a portion of realized profit is distributed amongst the bond holders as per
mudaraba principle of Islamic Shariah on the basis of the tenure of the bond. So, the rate of return from Islamic Bond is not prefixed rather dependent on fund
deployment by Bangladesh Bank.
6.2 Investment (Cost) in Shares (Quoted)

MBL 1st Mutual Fund 3,728,491 2,539,407

1FIC 1ST Mutual Fund 4,447,000 4,447,000
Trust Bank 1ST Mutual Fund 1,617,033 1,102,750
1FIL Islam' Mutual Fund 2,032,000 2,032,000
AB 1st Mutual Fund 3,836,731 3,836,731
ICB Agrani Mutual Fund 2,529,900 2,529,900
Exim 1st Mutual Fund 8,843,463 8,843,463
reen Delta Mutual Fund 7,375,126 7,375,126
balance carried forward 34,409,740e Finuet 32,706,377

36 AcOuttats
 31.12.2023 31.12.2022
Taka Taka

balance brought forward 34,409,744 32,706,377

PHP Mutual Fund 4,296,093 4,296,093
Vanguard Mutual Fund 1,688,141 1,688,141
National Bank PLC. 91,529,844 91,529,844
Shahjalal Islami Bank PLC. 16,623,683 11,455,555
Standard Bank PLC. 19,971,770 19,971,770
Global Islami Bank PLC. 13,173,670 13,173,670
Titas Gas PLC. 7,260,000 7,260,000
Jamuna Oil 29,068,819 22,327,446
ACME Laboratories 12,781,875
ICICL 87,980
BSRM PLC. 7,226,477 4,585,642
Beximco Sukuk Al Isti 10,000,000 10,000,000
SS Steel 8,816,104 8,816,104
ACI Formulations PLC. 30,791,250 10,194,629
JMI Hospital Requisite 8,018,759
Shasha Denim PLC. 2,907,256 2,907,256
Summit Alliance Port 12,468,215 5,365,258
BBS Cables 2,775,306 2,775,233
United Power Generation 6,002,993 2,488,729
Lub-rref Bd. 75,400,000
Square Pharmaceuticals 76,751,389 32,191,490
IFADAuto PLC. 4,968,636 4,968,636
Meghna Petroleum 63,466,071 19,680,000
Bangladesh Shipping Corporation 44,431,189
Aamm Networks PLC. 21,246,834
Genex Infosys PLC. 8,207,199
Grameen Phone 26,225,400
Silco Pharmaceuticals 2,406,010
Bashundhara Paper Mills 6,213,041
Padma Oil Co. 6,225,525
Lafarge PLC. 6,757,511
Summit Power 12,093,290
AOPLC 36,950
598,839,044 383,869,853

6.3 Capital Market (special fund)

ACI 28,492,661 28,492,664

Bamka Power 6,505,837 6,505,825
BSRM LTD 13,061,508 13,061,513
BSRM Steel 5,238,409
Confident Cement 33,106,767 33,106,777
Desco 7,657,460
GPH Ispat 10,205,197 10,205,205
ACI Formula 3,107,750
Exim Bank PLC. 12,245,860 12,245,900
Shahjalal Islami Bank PLC. 36,610,601 36,610,560
Al- Arafa Islami Bank PLC. 7,716,080 7,716,090
IFADAuto PLC. 20,261,777 20,261,766
Jamuna Oil 16,338,052 16,805,922
Padma Oil 6,192,519
MJLBD 9,279,206 9,279,210
ICB Agrani 1st Mutual Fund 3,007,635 3,007,640
EHBL 7,194,750
BSRM Steel 5,238,410
Meghna Petroleum 18,294,198
ACMELAB 13,972,890
Renata 21,273,369 7,820,817
Singerbd 8,515,528 8,515,530
Square Pharmaceuticals 31,909,991 31,909,890
Summit Power PLC. 40,594,325 40,594,300
BEXGSUKUK 800,000,000 800,000,000
BXPHARMA 18,731,693 18,731,784
MARICO 1,213,471
OLYMPIC 16,185,429
POWERGRID 11,792,610 11,792,620
SILCO PHARMA 10,681,664 10,681,680
SQUARE Textile 6,926,992 6,926,990
Desco 7,657,469
rthm Insurance 14,670,296
1,174,823,529 1,213,329,559

37
 31.12.2023 31.12.2022
Taka Taka

6.4 Investment (Cost) in Shares (Unquoted)

CDBL Share 1,569,450 1,569,450
Orion Infrastructure Ltd. (Cumulative) 500,000,000 500,000,000
Orion Infrastructure Ltd. (Redeemable) 169,900,000 169,900,000
Awqaf Properties Investment fund (APIF) 166,968,945 166,968,945
Central Counterparty Bangladesh Ltd.(CCBL) 37,500,000 37,500,000
Investment in SWIFT (Foreign Share) 4,789,356 4,789,356
880,727,751 880,727,751

6.5 Subordinated Bond

FSIBL Mudaraba Subordinate Bond (2nd & 3rd Bond) 700,000,000 1,000,000,000
UBL Mudaraba Subordinate Bond 600,000,000 800,000,000
EXIM 5th Mudaraba Subordinate Bond 2,000,000,000
Investment in FSIBL Mud. Per. Bond 1,600,000,000 1,600,000,000
Investment in STBL Mud. Per. Bond 1,500,000,000 1,500,000,000
Investment in SJIBL Mud. Per. Bond 1,500,000,000 1,500,000,000
7,900,000,000 6,400,000,000
Total Investment (Cost) in Shares (Unquoted)/Bond 8,780,727,751 7,280,727,751
Investment in Subsidiaries represents the amount invested in 'SIBL Securities Limited' and 'SIBL Investment Limited' that were incorporated on 20 July
2010 and 30 August 2010 respectively vide certificate of incorporation no: C-85876/10 and C-86726/10. SIBL holds 12,299,990 and 2,499,994 nos. shares of
'SIBL Securities Limited' and 'SIBL Investment Limited' respectively with a face value of Tk. 100 each and also representing holding of 99.99% shares in
both the subsidiaries.
Awqaf Properties Investment fund (APIF) is operated by Islamic Development Bank (IDB). APIF provides financing for the development of Awqaf properties
both in member countries and Islamic communities in non-member countries. The objective of APIF is to develop and invest in accordance with the principles
of Islamic Shariah, in Awqaf real estate properties that are socially, economically, and financially viable, in member countries of IDB and Islamic communities
in non-member countries. Its main activities are poverty alleviation programmes, disaster relief, free health services, imparting religious and contemporary
education, heritage, culture, and environment.
6.6 Details of Shares & Securities in Quoted and unouoted other than in subsidiaries 31.12.2023
Taka
Fair value/ Market
No. of Shares/ Market price per Cost price as on
Particulars value as on 31-12- Fair value adjustment
Securities Shares 31-12-2023
2023
°noted Shares
MBL 1st Mutual Fund 500,000 6.70 3,350,000 3,728,491 (378,491)
IFIC 1ST Mutual Fund 800,000 5.10 4,080,000 4,447,000 (367,000)
Trust Bank 1ST Mutual Fund 290,000 5.60 1,624,000 1,617,033 6,967
1FIL Islami Mutual Fund 317,500 7.00 2,222,500 2,032,000 190,500
AB 1st Mutual Fund 704,846 5.20 3,665,199 3,836,731 (171,532)
1CB Agrani Mutual Fund 281,100 9.40 2,642,340 2,529,900 112,440
Exim 1st Mutual Fund 1,400,000 5.80 8,120,000 8,843,463 (723,463)
Green Delta Mutual Fund 1,000,000 6.90 6,900,000 7,375,126 (475,126)
PHP Mutual Fund 800,000 5.20 4,160,000 4,296,093 (136,093)
Vanguard Mutual Fund 215,342 7.60 1,636,599 1,688,141 (51,542)
National Bank PLC. 11,000,000 8.30 91,300,000 91,529,844 (229,844)
Shahjalal Islami Bank PLC. 900,000 18.30 16,470,000 16,623,683 (153,683)
Standard Bank PLC. 2,050,000 8.60 17,630,000 19,971,770 (2,341,770)
Global Islami Bank PLC. 1,383,235 8.60 11,895,821 13,173,670 (1,277,849)
Titas Gas PLC. 200,000 40.90 8,180,000 7,260,000 920,000
Jamuna Oil 167,571 168.50 28,235,714 29,068,819 (833,106)
ACME Laboratories 150,000 85.00 12,750,000 12,781,875 (31,875)
BSRM PLC. 82,500 90.00 7,425,000 7,226,477 198,523
Beximco Sukuk Al Isti 100,000 85.00 8,500,000 10,000,000 (1,500,000)
SS Steel 500,000 16.60 8,300,000 8,816,104 (516,104)
ACI Formulations PLC. 190,000 155.00 29,450,000 30,791,250 (1,341,250)
JMI Hospital Requisite 100,000 70.30 7,030,000 8,018,759 (988,759)
Shasha Denim PLC. 100,000 27.00 2,700,000 2,907,256 (207,256)
Summit Alliance Port 400,000 27.20 10,880,000 12,468,215 (1,588,215)
BBS Cables 52,500 49.90 2,619,750 2,775,306 (155,556)
United Power Generation 25,000 233.70 5,842,500 6,002,993 (160,493)
Square Pharmaceuticals 360,000 210.30 75,708,000 76,751,389 (1,043,389)
IFADAuto PLC. 105,000 44.10 4,630,500 4,968,636 (338,136)
Meghna Petroleum 315,009 198.60 62,560,787 63,466,071 (905,284)
Bangladesh Shipping Corporation 350,000 107.00 37,450,000 44,431,189 (6,981,189)
Aamra Networks PLC. 300,000 51.30 15,390,000 21,246,834 (5,856,834)
Genex Infosys PLC. 104,000 65.40 6,801,600 8,207,199 (1,405,599)
Grameen Phone 100,000 286.60 28,660,000 26,225,400 2,434,600
Silco Pharmaceuticals 100,000 23.40 2,340,000 2,406,010 (66,010)
Bashundhara Paper Mills 80,000 61.00 4,880,000 6,213,041 (1,333,041)
balance carried forward 546,030,310 573,725,768 (27,695,457)

38
 No. of Shares/ Market price per Fair value/ Market Cost price as on Fair value adjustment
Securities Shares value as on 31-12- 31-12-2023
2023

balance brought forward 546,030,310 573,725,768 (27,695,457)

Padma Oil Co. 30,000 209.20 6,276,000 6,225,525 50,475
Lafarge PLC. 100,000 69.30 6,930,000 6,757,511 172,489
Summit Power 394,220 34.00 13,403,480 12,093,290 1,310,190
AOPLC 3,695 17.60 65,032 36,950 28,082
572,704,822 598,839,044 (26,134,221)

Preference Shares
Orion Infrastructure Ltd. (Cumulative) 50,000,000 500,000,000 500,000,000
Orion Infrastructure Ltd. (Redeemable) 169,900,000 169,900,000
669,900,000 669,900,000

Unaoted Shares/ Bond

CDBL Share 571,181 1,569,450 1,569,450
Awqaf Properties Investment fund (APIF) 166,968,945 166,968,945
Central Counterparty Bangladesh Ltd.(CCBL) 37,500,000 37,500,000
Investment in SWIFT (Foreign Share) 4,789,356 4,789,356
FSIBL Mudaraba Subordinate Bond (2nd & 3rd Bond) 700,000,000 700,000,000
UBL Mudaraba Subordinate Bond 600,000,000 600,000,000
Investment in FSIBL Mud. Per. Bond 1,600,000,000 1,600,000,000
Investment in STBL Mud. Per. Bond 1,500,000,000 1,500,000,000
Investment in SJIBL Mud. Per. Bond 1,500,000,000 1,500,000,000
6,110,827,751 6,110,827,751
Grand Total 8,528,256,103 8,554,390,324 (26,134,221)

6.7 Industry wise classification of shares

Quoated shares
Banks 141,298,967 136,130,839
Mutual Funds 40,393,978 38,690,611
Others 417,146,099 209,048,403
598,839,044 383,869,853
6.8 Cost of shares and securities of quoted and unquoated, other than investment in subsidiaries 8,554,390,324 8,877,927,163
Fair value adjustment (Profit/(Loss)} to be made through profit and loss account
Value of shares and securites, Quoted and Unquoted other than investment in subsidiaries 8,554,390,324 8,877,927,163

To test the total value of the portfolios as shown above as on 31.12.2023, management of the Bank has cerefully reviewed whether it is necessary to provide
any provision to cover any expected loss that may arise from decrease in market value. The monthly review: December 2023, published from Dhaka Stock
Exchange Limited has been followed to test the market value and found that the total market value of the securities Tk. 57.27 crore as against purchase price
Tk. 59.88 crore and provision for an amount of Tk. 2.61 crore is made in the financial statements as on 31 December 2023 in compliance with DOS Circular
no: 04, Dated: 24 November 2011 and related Accounting Standards applicable in Bangladesh.

7 Investments
In Baneladesh
General Investments etc. (Note-7.1) 349,353,276,028 326,758,535,809
Bills purchased and discounted-net (Note- 7.2) 3,468,034,357 4,508,910,753
Outside Bangladesh
Bills purchased and discounted-net (Note- 7.2) 7,995,667,886 11,676,710,941
360,816' 978' 271
000000000 342 944,157,502
7 (a) Consolidated Investment
General Investments etc. 349,353,276,028 326,758,535,809
Less: InterCompany balance eliminated
SIBL Securities Limited Quard Investment with SIBL- Principal branch 820 000,000 790,000,000
SIBL Investment Limited
Total consolidated general investment 348,533,276,028 325,968,535,809
Bills purchased and discounted-net 11,463 702,243 16,185,621,694
Grand total ••=0
359,996,978,271 342.154,157,503

Maturity wise Classification of Investments:

With a residual maturity of
Re-payable on Demand 49,231,313,785 52,225,581,427
Not more than 3 months 83,510,820,785 77,570,992,239
Over 3 months but not more than 1 year 167,317,047,701 151,117,156,837
Over 1 year but not more than 5 years 52,904,624,000 48,331,578,000
Over 5 years 7,853,172,000 13,698,849,000
360,816,978,271 342,944,157,503

39
 31.12.2023 31.12.2022
Taka Taka

7.1 Mode-Wise Investment (General)

a) In Bangladesh
Musharaka 92,639,285 173,858,656
Murabaha 11,235,450,770 9,734,443,463
Mudaraba 20,119,363,535 14,521,541,191
Bai-Muazzal 231,593,621,203 219,134,720,518
Hire-Purchase Sirkatul Meelk 62,491,807,134 61,528,389,120
Quard 19,133,069,883 17,045,124,824
Bai-Salam 1,204,869,233 1,110,964,831
Staff Loan 1,903,825,155 2,086,774,124
Ijarah 339,406,371 362,427,485
Visa Card 1,239,223,459 1,060,291,598
349,353,276,028 326,758,535,809
Mode-Wise Investment (General)
b) Outside Bangladesh
Musharaka
Murabaha
Bai-Muazzal
Hire-Purchase Sirkatul Meelk
Installment Investment Scheme
Quard
Bai-Salam
Others

7.2 Bills Purchased and discounted

In land Bill Purchase 3,468,034,357 4,508,910,753
Outside Baneladesh
Foreign Bill Purchased 57,374,742 47,252,448
Murabaha Bill ofExchange 1,189,539,017 1,318,436,039
Baim-Wes bills 6,748,754,127 10,311,022,453
7,995,667,886 11,676,710,941
Grand total of net Bills Purchased and Discounted 1 1,463,702,243 16,185,621,694

7.2.1 Bills Purchased and Discounted

Payable in Bangladesh 4,732,838,909 5,899,422,176
Payable outside Bangladesh 6,885,408,212 10,488,387.740
Gross Bills Purchased and Discounted 11,618,247,121 16,387,809,916
Less: Profit receivable on Bills Purchased and Discounted 154,544,877 202,188,223
Net Bills Purchased and Discounted .
11,463,702,244
1.1.1111•MM Mill.1
166 18566216694
11111 11011111 1===

Maturity wise Classification of Bills Purchased and Discounted:

On demand 2,292,740,449 3,237,124,339
Over 1 month but less than 3 months 5,731,851,122 8,092,810,847
Over 3 months but less than 1 year 3,439,110,673 4,855,686,508
1 year or more
11 463 702 24; 16,185,621,694

7.3 Investments on the basis of significant concentration 31.12.2023 1.12.2022

Investments to allied concern of Directors 0.00% 0.00%

Investments to Executives & Staffs 0.56% 0.64% 2,032,301,540 2,207,617,983
Investments to Industries 48.05% 47.56% 173,369,216,844 163,090,295,905
Industrial to Trade & Commerce 29.86% 31.56% 107,735,237,455 108,243,332,400
Others 21.53% 20.24% 77,680,222,431 69,402,911,214
100.00% 100.00% 360,816,978,271 342,944,157,503

Investments allowed to individual customer exceeding 15% of Bank's total capital:

Number of Client with amount of outstanding Investment to whom Investments sanctioned exceeds 15% of total capital of the Bank is reported hereunder.
Total capital of the Bank was Tk. 3,874.46 Crore as on 31.12.2023 and was used as base figure to calculate the single party exposure limit-funded liability;
and such limit was fixed at Tk. 581.17 crore (3,874.46 crore x 15%) till 31.12.2023. It is mentioned here that as per Bank Companies Act, 1991, single party
exposure limit has been fixed at 15% for funded and 20% non-funded investment based on capital maintained for non export oriented clients whereas 15%
funded and 35% non-funded limit for 100% export oriented clients.

Total Principal outstanding amount to such customers at end of the year (Funded) Nil Nil
Number of such types of customers Nil Nil
Amount of Classified Investments thereon Nil Nil
Measures taken for recovery Not applicable Not applicable

* As per BRPD circular no. 2, dated: 16 January 2014, single party exposure limit 15% is not applicable for the client doing business in power sector. The
principal amount limit for such client is 25% of total capital, i.e Taka-968.62 crore as on 31.12.2023.

40
7.4 Business Segment Wise Investment
(Amount in Taka)
2023 2022
Sector
Amount Composition Amount Composition
Corporate Investment 277,733,872,799 76.97% 255,620,757,130 74.54%
SME Investment 64,309,012,875 17.82% 70,432,840,675 20.54%
Retail & Quard MTDR-DPS to Individuals 10,430,559,729 2.89% 8,179,088,739 2.38%
Agri & Mocrofinance Investment 2,126,463,073 0.59% 2,078,759,146 0.61%
Credit Card Investment 1,239,223,459 0.34% 1,060,291,598 0.31%
Others Investment 4,977,846,336 1.38% 5,572,420,215 1.62%
Total 360,816,978,271 100.00% 342,944,157,503 100.00%

I
7.5 Investment Concentration on Major Sectors
kfltuuflt in Tql:1
2023 2022
Sector
Amount Composition Amount Composition
RMG 21,926,815,307 6.08% 21,854,395,976 6.37%
Textile 22,449,245,382 6.22% 23,454,130,344 6.84%
Food and allied industries 22,633,721,379 6.27% 18,744,312,583 5.47%
Pharmaceutical Industries 1,576,209,909 0.44% 1,489,012,956 0.43%
Chemical, Fertilizer, etc. 6,464,340,966 1.79% 5,257,533,755 1.53%
Cement and Ceramic Industries 6,506,626,105 1.80% 5,555,868,687 1.62%
Ship building industries 505,214,386 0.14% 559,630,774 0.16%
Ship breaking industries 1,696,781,098 0.47% 1,652,999,391 0.48%
Power and Gas 11,473,111,477 3.18% 11,104,212,179 3.24%
Other manufacturing or extractive industries 44,576,570,578 12.35% 42,026,222,733 12.25%
Service Industries 28,358,224,636 7.86% 26,514,794,266 7.73%
Other Agro-based industries 5,202,355,621 1.44% 4,877,182,262 1.42%
Investment to Trade & Commerce 107,735,237,455 29.86% 108,243,332,400 31.56%
Investment to Consumer Finance 3,736,432,848 1.04% 4,188,171,402 1.22%
Other Investment 75,976,091,123 21.06% 67,422,357,795 19.66%
Total 360,816,978,271 100.00% 342,944,157,503 100.00%
I
7.5 Geographical Location-wise Classification of Investments
(Amount in Taka)
2023 2022
Sector
Amount Composition Amount Composition
i) Within Bangladesh
a) In Rural Areas 30,602,872,252 8.48% 30,095,633,846 8.78%
b) In Urban Areas 330,214,106,019 91.52% 312,848,523,656 91.22%
Sub-total (a+b) 360,816,978,271 100.00% 342,944,157,503 100.00%
ii) Outside Bangladesh - - - -
Total (i+ii) 360,816,978,271 100.00% 342,944,157,503 100.00%

7.6 Division-wise Investments

As at 31 December 2023 As at 31 December 2022

Division
Amount I Composition Amount Composition
Dhaka 267,678,759,507 74.19% 254,009,383,933 74.07%
Chattogram 72,611,074,775 20.12% 69,266,638,635 20.20%
Sylhet 1,478,424,918 0.41% 790,794,787 0.23%
Rajshahi 6,317,894,895 1.75% 6,560,741,567 1.91%
Ithulna 6,906,705,509 1.91% 7,009,059,035 2.04%
Rangpur 1,985,460,307 0.55% 2,060,156,874 0.60%
Barisal 1,500,748,571 0.42% 1,290,198,009 0.38%
Mymensingh 2,337,909,789 0.65% 1,957,184,661 0.57%
Total 360,816,978,271 100.00% 342,944,157,503 100.00%
31.12.2023 31.12.2022
Taka Taira
7.7 Investments (Classification wise)
Unclassified
Standard 327,721,902,664 308,721,059,389
Special Mentioned Account 11,772,583,026 13,545,465,932
Classified
Substandard 826,410,417 873,577,145
Doubtful 333,842,525 393,260,819
Bad or Loss 16,003,472,026 15,124,417,090
356,658,210,658 338,657,780,374
Standard (short term agri / micro inv.) 2,001,591,475 1,993,449,678
Special Mentioned Account (short term agri/ micro inv.)
Substandard (short term agri / micro inv.) 6,851,583 1,003,680
Doubtful (short term agri / micro inv.) 901,146 16,889,474
Bad or Loss (short term agri/micro inv.) 117,118,869 67,416,314
2,126,463,073 2,078,759,146
Staff Investment 2,032,304,540 2,207,617,983
360.816,978.271 342,944,157,503

41
 31.12.2023 31.12.2022
Taka Taka
7.8 Particulars of provision required for general investment
Unclassified (Excluding Off-balance sheet exposures) 4,887,497,767 5,290,055,334
Classified 7,926,217,063 7,638,552,062
Unclassified- Off-balance sheet exposures 635,075,584 692,679,602
13,448,790,414 13,621,286,997
7.8.1 Detail Particulars of Provision for Investment
Unclassified Rate Base for Provision Provision Required
Standard 1% 266,717,982,048 2,679,465,136 2,418,885,808
Special General Provision-COVID-19 341,607,332 468,241,949
1%
(As per BRPD Circular letter No.56 dt. 10.12.2020)
Special General Provision-COVED-19 287,521,150 445,788,215
1.5% & 2%
(As per BRPD Circular letter No.52 dt 29.12.2021.)
Special General Provision-COVID-19 68,252,856 72,626,772
I.% & 2%
(As per BRPD Circular letter No.53 dt 3 .12.2022.)
Staff Investment 0%
Consumer Finance (Other than HF and LP) 2% 1,329,202,433 26,584,049 24,218,297
Small and Medium Enterprise 0.25% 56,208,230,820 140,520,577 152,700,184
Housing Finance (HF) 1% 1,947,672,127 19,476,721 19,563,429
Loan for Professionals (LP) 2% 1,167,069 23,341 13,349,913
Share 2% 1,178,480,424 23,569,608 48,409,632
SMA Investment (Same as UC i.e 0.25%, 1%, 2%) 2% 11,579,350,223 1,280,461,081 1,606,336,638
Unclassified Off Balance Sheet Items I% 63,507,558,400 635,075,584 692,679,602
Classified
Substandard 20% 484,363,092 96,872,618 103,176,739
Substandard (CMSME) 5% 21,267,326 1,063,366
Doubtful (CMSME) 20% 26,168,910 5,233,782 8,446,041
Doubtful 50% 129,380,465 64,690,233 83,388,643
Bad or Loss 100% 7,718,545,748 7,718,545,748 7,426,904,538
13,388,963,183 13,584,716,400

Provision Required (Short term Agricultural & Micro Base for Provision Provision Required
Rate
Credit)
Unclassified
Standard (short term agri /micro credit) I% 2,001,591,475 20,015,915 19,934,497
Classified
Substandard (short term agri ,micro credit) 5% 1,392,540 69,627 2,175,917
Doubtful (short term agri /micro credit) 5% 135,172 6,759 548,334
Bad or Loss (Short term agri /micro credit) 100% 39,734,930 39,734,930 13,911,850
59,827,230 36,570,598
Required provision for Investments (Grand Total) 13,448,790,414 13,621,286,997
Total provision maintained 13,448,790,414 13,621,286,997
Provision Surplus/(Shortfall)
Provision Made: (Other than Short term Agricultural & Micro Credit)
Unclassified
Standard 4,222,096,355 4,356,463,801
SMA 1,280,461,081 1,606,336,638
Classified
Substandard 97,935,985 103,176,739
Doubtful 69,924,015 91,834,684
Bad or Loss 7,718,545,748 7,426,904,538
13,388,963,183 13,584,716,400
Provision Made: (Short term Agricultural & Micro Credit)
Standard (short term agri credit) 20,015,915 19,934,497
Substandard (short term agri credit) 69,627 2,175,917
Doubtful (short term agri credit) 6,759 548,334
Bad or Loss (Short term agri credit) 39,734,930 13,911,850
59,827,230 36,570,598
Grand Total 13,448,790,414 13,621,286,997
Required provision - Provision made = Surplus/ (Shortfall)
7.8.2 Particulars of provision for Off-Balance Sheet items
Status Rate Basis for Provision
Off-Balance Sheet Items 1% 76,857,695,115 635,075,584 692,679402
Required provision for Investments 635,075,584 692,679,602
Provision maintained {note # 14.1(c)) 635,075,584 692,679,602
Surplus Provision
7.9 Particulars of Investments:
(i) Investment considered good in respect of which the Banking Company is fully secured 131,232,645,560 165,413,924,047
(ii) Investment considered good for which the Banking Company holds no other security other than the debtor's
personal security 220,692,586,155 169,372,667,809
(iii) Investment considered good and secured by personal security of one or more parties in addition to the
personal security of the debtors 8,891,746,556 8,157,565,648
nvestment considered bad or doubtful not provided for
tal

42
 31.12.2023 31.12.2022
Taka Taka

(v) Investment due by directors or officers of the Banking Company or any of them either severally or jointly
with any other person 2,032,301,540 2,207,6 I 7,983
(vi) Investment due by companies or firms in which the directors of the Banking Company are interested as
directors, partners or managing agents or, in the case of private companies as members.
(vii) Maximum total amount of investments, including temporary investments made at any time during the period
to directors or managers or officers of the Banking Company or any of them either severally or jointly with
any other persons. 9,623,799 8,742,050
(viii) Maximum total amount of Investments including temporary Investment granted during the period to the
companies or firms in which the directors of the Banking Company are interested as directors, partners or
managing agents or in the case of private companies as members Nil Nil
(ix) Investment due from other Banks Nil Nil
(x) Classified Investment on which profit has not been charged 16,120,590,895 15,191,833,404
(xi) Particulars of written off investments
a) Cumulative amount of written off/Waiver of Investments since inception to 31 December last year 8,038,225,758 7,347,136,886
b) Amount of written off/waiver of Investment during the year 966,968,592 691,088,872
Total amount of written off (a+b) , 9,005,194,351 8,038,225,758

c) Amount recovered against debts which are previously written off (cumulative balance) 605,870,050 547,434,768
d) Amount of Investments written off/waiver against which cases have been filed for recovery 9,005,194,351 8,038,225,758
xii) e) Amount of compensation suspense as at year end. 4,198,421,032 3,932,091,419

7.10 Large Investment Restructuring

Large Investment Restructuring is made as per BRPD Circular no: 04, Dated: 29 January 2015, of the investments having minimum outstanding amount of
Taka-500 crore and above in aggregate. The Eligibility criteria as per the circular are:
a) Investments of a particular borrower or group in a Bank, singly or in clubbed together form, shall be eligible for restructuring. Borrower having exposure
in multiple Banks may also approach by forming a consortium.
b) Minimum outstanding investment amount for restructuring shall be Taka-500.00 crore or above in aggregate.
c) Restructuring facility will be provided to a particular investment only once.

Total outstanding amount of such restructured investment for the year 2023 amounts to Taka- 17.88 crore.

8 Fixed Assets including Premises (Including Intangible Assets)

A. Cost
Land 12,330,000 12,330,000
Building 2,320,220,714 2,320,220,714
Furniture & Fixtures 1,981,399,403 1,771,331,954
Office Equipment 2,460,604,273 2,248,023,968
Software 365,635,877 349,352,199
Vehicles 150,656,690 150,656,690
Right of use Assets as per IFRS-16 * 1,076,018,197 1,076,018,197
Books 1,853,571 1,787,652
8,368,718,726 7,929,721,375

B. Accumulated Depreciation
Land
Building 587,404,355 543,565,690
Furniture & Fixtures 846,391,388 732,203,865
Office Equipment 1,590,782,468 1,403,254,185
Software 153,557,911 130,915,370
Vehicles 147,799,113 146,057,222
Right of use Assets as per IFRS-16 708,561,678 572,196,012
Books 1,301,655 1,240,476
4,035,798,568 3,529,432,820
Carrying value 4,332,920,158 4,400,288,555
* The cost of the right of use assets (ROU) (lease assets) comprises lease liabilities which is present value of lease payments and the advance rent. While
calculating right of use assets, the bank has not considered the present value of lease payments against its ATM booth if the agreement was made seperately as
considering it as low value assets and if the contract period of the rental premises did not exceed twelve months.

8.1 Intangible assets

Core Banking solution 'ABABIL' is used in SIBL which was incorporated in the year 2010. The value of all the softwares under the head 'Intangible Assets' is
Taka-365,635,877.00 and being amortized (4) 10% following the same method of reducing balancing method as applied for fixed assets. Written down value
of the software as on 31.12.2023 is Taka -212,077,965.00
For details please refer to Annexure-A
8(a) Consolidated written down value of Fixed Assets including intangible assets

Social Islami Bank Ltd. 4,332,920,158 4,400,288,555

Fixed assets of subsidiaries 10,027,089 13,338,668
SIBL Securities Ltd. 10,027,089 13,338,668
SIBL Investment Ltd.
rrying value of Fixed assets of the Group 4,342,947,247 4,413,627,223

43
 31.12.2023 31.12.2022
Taka Taka

9 Others Assets
Stock of stationery, stamps and printing materials etc. (valued at cost) 69,506,198 39,368,382
Advance rent 89,507,077 102,048,769
Security Deposit 3,459,517 3,401,359
Branch Adjustments (SIBG) (Note: 9.1) 12,101,459,879 8,750,090,444
Suspense Accounts (Note: 9.2) 657,036,331 425,166,833
Other Prepayments 129,134,000 59,241,494
Share Trading A/C Receivable from SIBL Securities Ltd. 213,551,595 308,278,647
Advance Income Tax 16,796,461,261 15,208,679,910
Investment in subsidiary: SIBL Securities Limited 1,537,499,000 1,537,499,000
Investment in subsidiary: SIBL Investment Limited 249,999,400 249,999,400
Profit Receivable from SIBL Securities Limited 353,520,234 218,722,842
Receivable from SIBL Investment Limited 1,903,690 1,903,690
Protested Bills against Investment 325,014,370 325,014,570
Profit Receivable from Banks, NBFI and BD Govt. 718,278,812 498,783,519
Investment with Off-shore Banking Unit 20,111,491,082 8,663,735,120
Receivable from Off-shore Banking Unit 300,912,435
Dividend Receivable Account 868,312,619 785,424,619
Profit Receivable from Mudaraba Subordinated Bond 61,182,603 40,898,630
Profit Receivable for SME Stimulous fund 79,411,985
Profit Receivable from Mudaraba Perpetual Bond 361,909,310 356,627,411
Profit Receivable from Beximco Green Sukuk 36,295,888 38,268,491
Others (Note: 9.3) 519,025,228 134,957,602
55,204,548,095 38,128,435,151
Less: Balance with OBU for elimination
Investment with Off-shore Banking Unit 20,11 1,491,082 8,663,735,120
Grand total after elimination of balance with OBU 35,093,057,013 29,464,700,031

9(a) Consolidated other Assets

Social Islami Bank PLC. 35,093,057,013 29,464,700,031
Add: Other assets ofsubsidiary companies
SIBL Securities Limited 2,836,812,625 2,735,487,352
Membership of Chittagong Stock Exchange 307,000,000 307,000,000
Membership of Dhaka Stock Exchange 682,770,683 682,770,683
Advance Income Tax 185,359,061 170,035,198
Advance to Vendor 521,500 30,000
Advance Office Rent 1,672,967
Receivable from Regulators 9,362,776 4,761,192
Receivable from client 1,437,460,661 1,432,614,881
Receivable from DSE, CSE ,Bai-Muajjal & Dividend Income 212,444,976 138,055,398
Security Deposit to CDBL, DSE 200,000 200,000
Security Deposit to BTCL & Duncan Products 20.000 20,000
SIBL Investment Limited 13,197,601 8,436,737
Advance Income Tax 0 4,825,348 3,695,103
Accounts receivable 8,372,253 4,741,634
Less: InterCompany balance eliminated Investments in Subsidiaries 1,787,498,400 1,787,498,400
Investment in subsidiary: SIBL Securities Limited 1,537,499,000 1,537,499,000.
Investment in subsidiary: SIBL Investment Limited 249,999,400 249,999,400
Less: Inter Company transactions eliminated: 355,423,924 220,626,532
Receivable from SIBL Securities Limited 353,520,234 218: 722,842
Receivable from SIBL Investment Limited 1,903,690 1.903,690
35,800,144,916 30,200,499,189
9.1 The balance of Branch adjustment (SIBG) represents unresponded Inter branch and head office transactions at balance sheet date. The balance of Debit and
Credit unrespondent entries as on 22 April 2024 were Taka 8,919,511,137.89/- Details of which are as follows:
Number of Amount (in Tk) of
Unresnondent entries Unresnondent entries
31.12.2023 31.12.2022 31.12.2023 31.12.2022
Upto 3 months 109 4,679,887,997
Over 3 months but within 6 months 43 1,229,257,256
Over 6 months but within 9 months 8 496,542,743
Over 9 months 10 2,513,823,141
170 8,919,511,137

9.2 Suspense Account represents advance against TA/DA, Entertainment Expenses, Advertisement Expenses, Branch Decoration Expenses, Legal Charges and
suspense -others. Necessary provision on others assets has been made in the accounts according to the BRPD Circular.no: 14 dated June 25, 2001 pars Kim.
(1)&(2).

9.3 Others
Clearing Adjustment 10,000,000 28,800,000
D.D. Paid without advice 650 650
Capitalized Expenditure • 50,000
djusting A/c debit balance 44,770,481 6,157,616
balance carried forward 54 821 1 ,958,266

44
GW9fsga
Acmisn
yis
4-•
 31.12.2023 31.12.2022
Taka Taka
balance brought forward 54,821,131 34,958,266
Advance VAT paid 3,850,865 3,843,402
BEFTN adjustment A/c (471,717,418) (10,338,402)
Parking Assets 9,374,407
Cards Accrued Income 1,035,192 536,036
Incentive disbursement Fund 903,755,589 105,958,299
Profit Receivable from IBDA 12,787,498
Other Receivable 5,117,965
519,025,228 134,957,602

10 Placement from Banks & Other Financial Institutions

Borrowing from Bangladesh Bank 43,280,000,000 30,000,000,000
The Bank has an outstanding balance of borrowing Tk. 4328.00 crore as on 31.12.2023 taken from Tk. 275.00 crore Bangladesh Govt. Islamic Bond, Tk.
1243.00 crore Islami Bank liquidity facility (IBLF), 2700.00 crore Special liquidity facility fund having different maturity dates and Tk. 110 crore Borrowing
from other bank FC. Profit rate of such borrowings is determined under Mudaraba Principle. A demand promissory note favoring Bangledesh Bank has been
kept as security to Bangladesh Bank against the borrowings.
Maturity Grouping of Borrowings
Upto 1 month 40,530,000,000 28,000,000,000.00
More than 1 month but less than 3 months 2,750,000,000 2,000,000,000.00
More than 3 month but less than 6 months
6 months and above
43,280,000,000 30,000,000,000
11 Deposits and Other Accounts
Mudaraba Savings Deposits (MSD) 41,914,376,057 40,084,046,928
Mudaraba Term Deposits (MTDR) 147,554,326,209 168,510,358,684
Other Mudaraba Deposit 85,178,611,324 79,636,478,408
Mudaraba Short Notice Deposits (MSND) 22,820,563,556 19,061,241,571
Mudaraba Scheme Deposits (Note-11.1) 62,358,047,768 60,575,236,837
Al- Wadeeah Current Deposit and other accounts (AWCD) (Note- 11.2) 71,365,873,685 45,975,991,996
Bills payable (Note-11.3) 10,920,649,729 6,327,507,930
Cash Waqf Fund 455,010,127 415,930,983
357,388,847,131 340,950,314,928
Mudaraba Scheme Deposits
Mud. Hajj/ Umrah Savings Scheme 229,260,262 173,547,415
Mud. Pension Savings Scheme 754,568,581 969,073,238
Mud. Education Savings Scheme 31,651,974 34,354,161
Mud. Monthly Say. Deposit Sche 69,632,881 62,132,829
Mud. Monthly Profit Deposit 1,123,267,319 1,589,021,178
Mud. Bashstan Savings Scheme 216,310,660 330,533,820
Mud. Millionaire Scheme 536,811,190 719,770,419
M.Lakhopoti Deposit Scheme 11,441,733 13,508,052
M. Double Benefit Deposit Scheme 141,117,094 255,765,584
M.Marriage Savings Scheme 68,983,649 78,546,549
M.Mohorana Savings Scheme 32,277,874 21,322,428
Subamalata Special Scheme(Women) 11,128,390 12,375,596
Subama Relcha Special Deposit(Women) 857,879,978 1,154,364,475
Shabug Chya Special Deposit 13,469,601 20,256,862
Shabuj Shayanna Special Deposit 196,902,637 245,551,003
Sanchita Special Deposit scheme 142,864,947 206,438,790
Sonali Din Pension Deposit Scheme 9,766,850,026 12,602,908,347
Sukher Thikana Savings Scheme 23,210,815 20,975,124
Sacchandey Protidin Monthly Profit Deposit 562,076,702 851,134,742
Samriddir Sopan Scheme Deposit 38,255,107 62,267,319
Sopner Sin Deposit Scheme 29,581,014 69,863,192
Shama Shikhar (Mudaraba Billinior Deposit S 1,255,611,142 1,301,143,546
Proshanti (Mudaraba Zakat Savings Deposit S 33,384,853 19,315,793
SIBL Astha (Mudaraba Monthly Pension scheme) 23,445,638,362 30,513,018,918
SIBL Super DPS (Mudaraba Pension scheme) 7,974,615,288 6,578,660,881
SIBL Digun Prottasha (Double Benefits Scheme) 1,957,392,659 1,895,921,007
Al-Wasiah bill Waqf 27,779,294 11,017,277
SIBL Education Savings Scheme 548,035,713 185,927,626
SIBL Medical Savings Scheme 1,457,159,378 452,600,875
SIBL Marriage Savings Scheme 192,339,151 66,215,638
Internet Banking Deposit Scheme (TB DPS) 17,765,317 1,840,161
SIBL Probashi Deposit Scheme 200,086,848 2,627,415
Retired Citizen Monthly Benefits 8,446,364,219 50,000,000
Hawkers Deposit & Bisiness Development 131,057,151 3,236,579
Driver Deposit Scheme 38,976,610
Mudaraba Sorbochcho Munafa 1,738,165,816
Mudaraba Oichik Sanchoy 36,133,533
ay*, 62,358,047,768 60,575,236,837
ount of Mudaraba Scheme Deposit mentioned above are inclusive of Profit payable on the scheme deposits.

45
 31.12.2023 31.12.2022
Taka Taka

11.2 Al-Wadeeah Current Deposit & other A/c

Al Wadeeah current deposit 13,779,425,099 13,370,940,500
Un-claimed dividend (Note: 11.2.1) 115,951,023 82,465,322
Sundry deposit 15,544,832,973 12,628,688,645
Social fund deposit 17,075 17,075
Supervision charge 828,292 841,161
Risk fund deposit 12,471,930 10,930,736
FC deposit 18,627,021,868 11,610,297,610
Convertible Taka A/c* 2,501,351,267 165,125,281
F. C. held against B.B. UC 4,335,567,283 4,286,699,567
Bangladesh Bank Fund for COV1D 3,337,849,568 1,921,257,661
Bangladesh Bank Pre-Finance Fund 11,570,375,610
Profit payable A/c 1,516,368,917 1,875,535,819
Compensation Realized 23,812,780 23,192,621
71,365,873,685 45,975,991,996

11.2.1 Unclaimed Dividend

Dividend remained unclaimed which were declared for the year:-
SIBL dividend Payable A/C 479,723 480,068
SIBL Fraction dividend (Bonus share) 76,775 77,120
Initially primary offer (rPo) 2,800,805 2,801,380
Cash dividend 2001 297,089 297,434
Fraction dividend & Rights share issue 2008 342,836 343,986
SIBL rights Issue 2010 1,373,627 1,374,202
SIBL cash dividend 2011 5,759,284 5,759,284
SIBL cash dividend 2012 4,492,486 4,492,486
SIBL cash dividend 2013 11,430,514 11,432,333
SIBL cash dividend 2014 11,387,725 11,390,302
SIBL cash dividend 2015 7,205,960 7,206,661
SIBL cash dividend 2016 12,454,253 12,457,258
SIBL cash dividend 2019 7,667,337 7,731,338
SIBL cash dividend 2020 8,477,221 8,534,544
SIBL cash dividend 2021 7,164,949 8,086,926
SIBL cash dividend 2022 34,540,439
115,951,023 82,465,322

*Balance of Convertible Taka A/c represents the portion of unsettled balance.

11.2(a) Consolidated balance of Al-Wadeeah Current Deposit & Other A/c

Social Islami Bank PLC. 71,365,873,685 45,975,991,996
Less: InterCompany balance eliminated 538,802,827 695,327,365
SIBL Securities Limited 479,216,741 589,734,614
SIBL Investment Limited 59,586,086 105,592.751
Consolidated balance of Current deposit and other accounts 11•111•
70,827,070,860 45,280,664,632

The balances are held with the Principal Branch' of SIBL bearing current account no: 0002-13300056882 and 0002-13300057058 respectively. For
consolidation purpose the balances have been eliminated.
11.3 Bills Payable
Payment Order (PO) 10,258,443,623 5,223,801,288
Demand Draft (DD) 1,724,011 1,724,011
B/P awaiting remittance 660,482,095 1,101,982,631
10.920.649,729 6,327,507,930
11.4 Maturity wise classifcation of Deposits
Payable on demand 20,674,842,565 27,804,166,931
Up to 1 month 25,235,529,082 35,567,193,630
More than 1 month but up to 6 months 138,206,097,628 120,955,966,633
More than 6 months but up to 1 year 108,257,228,679 90,551,373,230
More than 1 year but up to 5 years 52,963,085,565 46,747,021,870
More than 5 years but up to 10 years 12,052,063,611 19,324,592,634
357,388,847,131 340,950,314,928
.111111/IN

11.5 Segregation of deposits & other accounts

i) Client Deposit •
Al-Wadeeah Current deposit & other accounts 71,365,721,235 45,975,187,763
Bills Payable 10,920,649,729 6,327,507,930
Mudaraba Savings Deposits 41,814,517,989 40,021,293,657
Mudaraba Short Notice Deposits 17,787,661,535 14,114,732,782
Mudaraba Term Deposit 141,254,326,209 158,365,258,684
Mudaraba Scheme Deposits 62,358,047,768 60,575,236,837
Cash Waqf Fund 455,010,127 415,930,983
345,955,934,590 325,795,148,635

46
 31.12.2023 31.12.2022
Taka Taka
ii) Bank Deposit
Mudaraba Term Deposit Receipt (MTDR) 6,300,000,000 10,145,100,000
Mudaraba Short Notice Deposit (MSND) 5,032,902,022 4,946,508,789
Al-Wadeeah Current deposit (AWCD) 152,451 804,233
Mudaraba Savings Deposit (MSD) 99,858,068 62,753,271
11,432,912,541 15,155,166,293
Grand Total of deposits and other accounts 357,388,847,131 340,950,314,928

12 SIBL Mudaraba Subordinated Bond 8,000,000,000 4,800,000,000

SIBPLC has three subordinated bonds namely "SIBL Mudaraba Subordinated Bond of Tk. 300 crore", SIBL 2nd Mudaraba Subordinated Bond of Tk. 400
crore and SIBL 3rd Mudaraba Subordinated Bond of Taka-500.00 crore to support and strengthen Tier-II capital base of the Bank under Basel-Ill capital
regulation of Bangladesh Bank.

SIBL Mudaraba Subordinated Bond of Tk. 300 Crore

Social Islami Bank PLC. issued 'SIBL Mudaraba Subordinated Bond of Tk. 300 Crore' in accordance with the regulatory approval from Bangladesh Securities
and Exchange Commission (BSEC) and Bangladesh Bank (BB) vide their letter ref no. BSEC/Cl/DS-13/2014/598 & BRPD (BFIS) 661/14 B(P)/2014-6027,
Dated: 26 August 2014 & 16 September 2014 respectively. The bond was fully subscribed by 14 nos of investors and the subscription of the bond closed on
31.03.2015. As on 31.12.2021 the bond has been fully redeemed.

SIBL 2nd Mudaraba Subordinated Bond of Tk. 400 Crore

Social Islami Bank PLC. issued 'SIBL 2nd Mudaraba Subordinated Bond of Tic. 400 Crore' in accordance with the regulatory approval from Bangladesh
Securities and Exchange Commission (BSEC) and Bangladesh Bank (BB) vide their letter ref no. BSEC/CUDS-13/2014/28 & BRPD (BFIS) 661/14
B(P)/2017-1252, Dated: 17 January 2017 & 01 March 2017 respectively. The bond was fully subscribed by 12 nos of investors and the subscription of the
bond closed on 20.06.2017. As on 31.12.2023 the bond has been fully redeemed.

3(
SIBL Mudaraba Subordinated Bond of Tk.500
Social Islami Bank PLC. issued 'SIBL 3rd Mudaraba Subordinated Bond of Tic. 500 Crore in accordance with the regulatory approval from Bangladesh
Securities and Exchange Commission (BSEC) and Bangladesh Bank (BB) vide their letter ref no. BSEC/CVDS-13/2014/670 & BRPD(BFIS)661/14B(P)/2018.
7647, Dated: 27 September 2018 & 11 October 2018 respectively. The list of investor with present outstanding balance is as follows:

Investors of SIBL 3rd Mudaraba Subordinated Bond

Agrani Bank PLC. 1,000,000,000 1,500,000,000
EXIM Bank PLC. 200,000,000 300,000,000
Islami Bank Bangladesh PLC. 800,000,000 1,200,000,000
2,000,000,000 3,000,000,000
=IND

SIBL 4th Mudaraba Subordinated Bond of Tk.600 Crore

Social Islami Bank PLC. issued 'SIBL 4th Mudaraba Subordinated Bond of Tic. 600 Crore in accordance with the regulatory approval from Bangladesh
Securities and Exchange Commission (BSEC) and Bangladesh Bank (BB) vide their letter ref no. BSEC/CVDS-192/2022/1117 &
BRPD(BS)661/14B(P)/2022-8466, Dated: 29 December 2022 & 21 August 2022 respectively. The list of investor with present outstanding balance is as
follows:
Investors of SIBL 4th Mudaraba Subordinated Bond

Al-Arafah Islami Bank PLC. 2,000,000,000 1,000,000,000

Islami Bank Bangladesh PLC. 1,000,000,000
FSIBL Employees Provident Fund 1,000,000,000
GIBL Employee's Gratuity Fund 200,000,000
Union Bank PLC. Employees' Provident Fund 300,000,000
Union Bank PLC. Employees' Gratuity Fund 200,000,000
Golam Rabbani 100,000,000
Best Golden Flour Mills Limited 300,000,000
M/s Mosharaf & Brothers 250,000,000
Mr. Hicicy Diaz 150,000,000
Northern Gold Holding Company Ltd 100,000,000
NSK Global Imports 400,000,000
6,000,000,000 1,000,000,000

13 SIBL Mudaraba Perpetual Bond of Tk.500 Crore

Social Islami Bank PLC. issued 'SIBL Mudaraba Perpetual Bond of Tic. 500 Crore in accordance with the regulatory approval from Bangladesh Securities and

Exchange Commission (BSEC) and Bangladesh Bank (BB) vide their letter ref no. BSEC/C1/DS-07/2014/272 & BRPD(BFIS)661/14B(P)I2020-8946, Dated:

25 November 2020 & 22 October 2020 respectively. The bond is fully subscribed on 13/10/2021 by the following investors:
Islami Bank Bangladesh PLC. 1,500,000,000 1,500,000,000
Exim Bank PLC. 1,500,000,000 1,500,000,000
AIBL Employees' Provident Fund 500,000,000 500,000,000
AIBL Employees' Gratuity Fund 500,000,000 500,000,000
Al-Arafah Islami Bank PLC. 1,000,000,000 1,000,000,000
5,000,000,000 5,000,000,000
stAPYIQU ,c,
go

47
ACZ
c fa

*
 31.12.2023 31.12.2022
Taka Taka
14 Other Liabilities
FC Charge 2,050,976 2,000
Adjusting A/C (Cr.) Balance 16,551,890 11,555,186
Other Payable 2,750,230 1,863,613
BEFTN Adjustment Account 20,800,092 30,778,270
Parking Account 117,007,430 53,065
ATM & Other Settlement for Q-Cash (11,049,582) (10,546,910)
Provision for Investments ( note: 14.1) 13,448,790,414 13,621,286,997
Provision for other Assets (note: 14.2) 469,860,570 560,127,557
Compensation and Profit Suspense (note: 14.3) 4,198,421,032 3,932,091,419
Provision for Taxation (note: 14.4) 20,628,473,744 19,151,629,907
Zakat Fund (note: 14.5) 135,226,796 122,634,898
Lease liabilities as per IFRS-16 • 339,401,866 449,478,868
Mudaraba Profit Distribution (note: 14.6) 20,000,000 10,000,000
Provision for good borrower (note: 14.7) 10,000,000 10,000,000
Provision for Climate Risk Fund (note: 14.8) 25,000,000 20,000,000
Provision for Start-Up Fund (note: 14.9) 82,045,540 56,404,239
Provision for diniminution of shares & securities 26,134,221 13,949,505
39,531,465,218 37,981,308,615
* The bank recognised lease liability which is present value of lease payments to be made over the lease terms from the date of commencement or 01 January
2020 (initial recognition). The lease payments has been discounted @6.00%.

14(a) Consolidated Other Liabilities

Social Islami Bank PLC. 39,531,465,218 37,981,308,615
Add: Other Liabilities ofsubsidiaries
SIBL Securities Limited 1,645,118,846 1,746,132,183
Payable to SIBL-Term loan 820,000,000 790,000,000
Payable to regulators 4,852,604 2,202,621
Payable to clients 361,323,334 512,380,206
Profit Payable on CCA to Client 9,491,085 25,959,700
Liabilities for payment to the issuer & Others 4,306,048 6,000
Other provisions 269,809,050 255,161,588
Lease Liability_Current Portion 613,734
Provision for Income Tax 175,336,726 159.808.334
SIBL Investment Limited 5,419,397 5,004,433
Accrued Expenses 23,000 92,000
Provision for dimunition in value of investment 1,188,942 1,188,942
Provision for Income Tax 4,207,455 3,723,491
41,182,003,460 39,732,445,231
Less: InterCompany balance eliminated
SIBL Securities Limited
Payable to SIBL-Term loan 820,000,000 790,000,000
Grand total 40,362,003,460 38,942,445,231
14.1 Provision for Investment
(a) Specific Provision on Investment
Provision held at the beginning of the year 7,638,552,062 7,598,676,652
Fully provided Investment written off /Waiver (966,968,592) (677,304,432)
Transferred from doubtful income/compensation realized/recovery 58,435,282 76,711,327
Provision made during this year 1,196,198,312 640,468,515
Balance at the end of the year 7,926,217,063 7,638,552,062
(A) General Provision on Investment
Provision held at the beginning of the year 4,303,398,397 4,456,886,600
Fully provided Investment written off/Waiver (13,784,440)
Addition/Adjustment during the year (113,281,968) (139,703,763)
4,190,116,429 4,303,398,397
(b2) General Provision COVID-19
Provision held at the beginning of the year 986,656,936 1,366,319,373
Addition/Adjustment during the year (289,275,598) (379,662,437)
697,381,338 986,656,936
Special General Provision-COVID-19
(As per BRPD Circular letter No.56 dt. 10.12.2020) 341,607,332 468,241,949
Special General Provision-COVID-19
287,521,150 445,788,215
(As per BRPD Circular letter No.52 dt. 29.12.2021 )
Special General Provision-COVID-19
68,252,856 72,626,772
(As per BRPD Circular letter No.53 dt. 22 .12.2022)
Balance at the end of the year 4,887,497,767 5,290,055,333
Total Provision on Investments Tm
2 813 714 830 12 928 607 95
(c) General Provision on Off-Balance Sheet items
Provision held at the beginning of the year 692,679,602 521,935,277
Addition/Adjustment during the year (57,604,018) 170,744,325
Balance at the end of the year 635,075,584 692,679,602
p,FIQ
Total Provision for Investments & Off-Balance Sheet items (a+b+c) 3,448,790,414 13,621,286,997

48
 31.12.2023 31.12.2022
Taka Taka
14.2 Provision for other Assets
Provision held at the beginning of the year 560,127,557 425,027,557
Provision adjustment during the year 147,653,844
Addition during the year 57,386,856 135,100,000
Balance at the end of the year 469,860,570 560,127,557
14.2.1 Provision for protested bills
Provision held at the beginning of the year 325,014.570 325,014,570
Provision during the year
325,014,570 325,014,570
ill111•1•11,

14.2.2 Provision for suspense account

Provision held at the beginning of the year 115,012,987 100,012,987
Provision adjustment during the year 27,559,389
Addition during the year 57,386,856 15,000,000
144,840,454 115,012,987
14.2.3 Provision for contingent liability
Provision held at the beginning of the year 120,100,000
Provision adjustment during the year 120,094,454
Addition during the year (To be transferred to 120,100,000
5,546 120,100,000
Bangladesh Bank has instructed us to keep provision regarding Cash reserve & other Statutory liquidity as contigent liability.
14.3 Compensation & Profit Suspense A/C
Compensation Receivable A/C
Murabaha (General) 105,766,445 126,333,063
Murabaha (Post Import) 45,331,740 45,248,469
Mushamka (Preshipment) 32,998,809 26,457,297
Bai-Muazzal 1,027,735,724 311,972,319
Bai-Muazzal Trust Receipt 314,974,150 276,665,852
Bairn Wes bills 115,209 261,702
Bai-Muazzal (ME) 526,373,693 465,746,859
2,053,295,769 1,252,685,561

Compensation Suspense A/C

Murabaha (General) 9,271,172 9,933,462
Murabaha (Post Import) 16,368,295 16,105,918
Bai-Muazzal 576,515,415 508,575,189
Bai-Muazzal- House hold 7,856 7,856
Bai-Muazzal Trust Receipt 29,461,997 31,116,279
Musharaka (Preshipment) 2,988,289
Others 109,706,777 211,479,223
741,331,513 780,206,216
Profit Suspense A/C 1,403,793,749 1899 199,642
Total Compensation & Profit Suspense 4.198,421,032 3,932,091,419
14.3.1 Movement of Compensation and Profit Suspense A/C
Balance at the beginning of the year 3,932,091,419 3,762,471,567
Add: Amount transferred to suspense account during the year 199,368,179 192,812,473
Less: Amount recovered from suspense account during the year (23,812,780) (23,192,621)
Balance at the end of the year 4 107 646 818 3,932,091,419

14.4 Provision for Taxation

Provision for Current tax
Balance at the beginning of the year 19,151,629,907 17,618,044,129
Add: Provision made during the year (Zalcat Fund) (Note:14.5) 81,136,078 73,580,939
Add: Provision made during the year (Note:14.4.1) 1,395,707,758 1,460,004,839
20,628,473,744 19,151,629,907
Advance tax
Balance at the beginning of the year 15,208,679,911 13,908,264,599
Paid during the year 1,587,781,351 1,300,415,312
16,796,461,262 15,208,679,911
Balance at the end of the year 3,832,012,482 3,942,949,997
14.4.1 Provision made during the year
Operating Profit before provision & tax 4,794,497,507 4,735,023,246
Accounting Depreciation 370,000,083 338,020,352
Fair value adjustment of shares & securities
Excess perquisites 65,000,000 55,000,000
Add: Inadmissible expense 435,000,083 393,020,352
Less: Items to be deducted
Dividend Income receipt 554,411,436 551,827,426
Capital Gain from Shares & Securities 12,556,589 40,622,402
Written off Bad Investment as per BRPD Circular 966,968,592 691,088,872
Depreciation under 3rd Schedule as per ITO 1984 and amendment 272,708,140 256,299,262
Less: Inadmissible expense and for separate consideration psF1Q°e ls, 1,806,644,757 1,539,837,962
otal Taxable Income 3,422,852,833 3,588,205,635

f C0104_, __I
4C
49 ..;; Accduntints
-
. —
 31.12.2023 31.12.2022
Taka Taka

Total Tax liability for current year

Business Tax @37.50% for year 2023 and @37.50% for year 2022 1,283,569,812 1,345,577,113
Dividend Tax @20% 110,882,287 110,365,485
Tax on gain on shares & securities @ 10% 1,255,659 4,062,240
Provision required 1,395,707,758 1,460,004,839
Provision made 1,395,707,758 1,460,004,839

14.4.2 Reconciliation of effective tax rate of the Bank

Particulars Effective Rate
Profit before income tax as per profit and loss account 4,794,497,507 4,735,023,246
Income tax as per applicable tax rate 37.50 1,797,936,565 1,775,633,717
Factors affecting the tax charge for current year:
Inadmissible 3.40 163,125,031 147,382,632
Abmissible Expenses in the current year (i.e.write-off etc.) (9.70) (464,878,774) (355,270,550)
Tax savings from reduced tax rates for dividend (2.02) (97,022,001) (96,569,800)
Tax loss/(savings) from reduced tax rates for capital gain (0.07) (3,453,062) (11,171,160)
Total income Tax Expenses 29.11 1,395,707,758 1,460,004,839

14.5 Zalcat fund

Opening Balance 196,215,838 181,384,083
Addition this year 216,362,875 196,215,836
To sadaka fund 135,226,796 122,634,898
To provision for tax 81,136,078 73,580,939
Less: Paid during the year
Less: Transferred to Provision for Taxation (73,580,939) (68,019,031)
Less: Transferred to Sadaka fund (Balance of Zakat Fund) (122,634,898) (113,365,052)
Closing Balance at the end of the year 216,362,875 196,215,838

14.6 Mudaraba Profit Distribution

Opening Balance
Addition the year 20,000,000 10,000,000
Less: Paid during the year
Closing Balance at the end of the year 20,000,000 10,000,000
14.7 Provision for good borrower
Opening balance 10,000,000 10,000,000
Addition during the year
Paid during the year
Closing Balance at the end of the year 10,000,000

14.8 Provision for Climate Risk Fund

Opening balance 20,000,000 20,000,000
Addition during the year 5,000,000
Paid during the year
Closing Balance at the end of the year 25,000,000 20,000,000
Provision for Climate Risk Fund has been maintained in accordance with GBSRD circular no: 04, dated: 09 July 20 I 5 and SFD circular no: 01 dated: I I May
2016. -

14.9 Provision for Start-Up Fund

Opening balance 56.404,239 32.106.411
Addition during the year 25,641.301 24.297,828
Paid during the year
Closing Balance at the end of the year 82,045,542. 56,404,239
Provision for Start-Up Fund has been maintained in accordance with Bangladesh bank SMESPD circular no: 05, dated: 26 April 2021.

14.10 Provision for diniminution of shares & securities

Opening balance 13,949,505
Addition during the year 12,184,717 13.949,505
Paid during the year
Closing Balance at the end of the year 26,134,221 13,949,505

15 Deferred Tax Liability/(Asset)

Balance at the beginning of the year 151,234,162 136,557,182
Add: Provision made during the year 4,051,353 14,676,980
155,285,514 151,234,162
Deferred Tax Liability/(Asset)

Revaluation reserve beginning of the year 320,745,825 328,872,812

Less: Transferred to Retained earnings 7,923,81 1 8,126,987
312,822,014 320,745,825
Closing balance at the end of the year
Deferred tax detailed calculation disclosed in annexure-G

50
 31.12.2023 31.12.2022
Taka Taka

15(a) Consolidated Deferred Tax Liability/(Asset)

Social Islami Bank Limited 468,107,529 471,979,987

SIBL Securities Limited

Balance at the beginning of the year 111,731 111,731
Add: Provision made during the year
Closing balance at the end of the year 111,731 111,731
•111•1•1 -

Grand total 468,219,260 472,091,718

16 Capital
16.1 Authorized Capital
3,000,000,000 ordinary shares of TIE. 10 each 30,000,000,000 30,000,000,000

16.2 Issued, Subscribed and Paid up Capital

The Paid-up Capital of the Bank is currently Tk. 10,858,620,000 divided into 1,085,862,000 Ordinary
Shares of Tk 10 each 10.858,620.000 10,341,542,860

Break up of paid up capital is as follows

26,000,000 no. Ordinary shares of TIc.10 issued for cash 260,000,000 260,000,000
477,322,945 no. Ordinary shares of Tk. 10 each for cash as right share 4,773,229,450 4,773,229,450
234,975,697 no.ordinary shares of Tk 10 each issued as bonus shares 2,349,756,970 2,349,756,970
73,829,864 no.ordinary shares of TIc 10 each issued as bonus shares 738,298,640 738,298,640
81,212,850 no.ordinary shares of T1c 10 each issued as bonus shares 812,128,500 812,128,500
44,667,067 no.ordinary shares of Tk 10 each issued as bonus shares 446,670,670 446,670,670
46,900,421 no.ordinary shares of Tk 10 each issued as bonus shares 469,004,210 469,004,210
49,245,442 no.ordinary shares of TIc 10 each issued as bonus shares 492,454,420 492,454,420
51,707,714 no.ordinary shares of Tk 10 each issued as bonus shares 517,077,140
10.858.620,000 10,341,542,860

Sponsor and Directors 3,702,411,280 3,315,997,210

General Shareholders 7,156,208,720 7,025,545,650
10,858,620,000 10,341,542,860

16.3 Classification of Shareholders by holding

No. of Shareholders Percentage of holding
No. of shares
Year 2023 of shares
Less than 500 shares 10,886 1,806,340 0.17%
501 to 5,000 shares 11,233 21,137,447 1.95%
5,001 to 10,000 shares 1,709 11,814,593 1.09%
10,001 to 20,000 shares 900 12,365,848 1.14%
20,001 to 50,000 shares 446 13,625,166 1.25%
50,001 to 99,999 shares 404 1,025,112,606 94.41%
Total 25,578 1,085,862,000 100.00%

Year 2022 No. of Shareholders Percentage of holding

No. of shares
Shareholding range of shares
Less than 500 shares 10,918 1,775,299 0.17%
501 to 5,000 shares 11,261 20,911,396 2.02%
5,001 to 10,000 shares 1,635 11,376,164 1.10%
10,001 to 20,000 shares 823 11,390,396 1.10%
20,001 to 50,000 shares 418 12,907,166 1.25%
50,001 to 99,999 shares 399 975,793,865 94.36%
Total 25,454 1,034,154,286 100.00%

16.4 Particulars of shareholding and Percentage Analysis

Particulars of shareholding: Year 2023

Number of Share
Number of Shares
holders
Sponsors 84 Placement 22 103,367,759 1,033,677,590 984,454,960
Foreign Investors 10 12,721,275 127,212,750 122,226,090
Sponsors 8c Placement Company 12 266,873,369 2,668,733,690 2,331,542,250
General Public 25,042 198,278,401 1,982,784,010 1,928,697,740
Institutions (Bank & Insurance) 31 35,915,757 359,157,570 353,671,890
Institution (Others) 427 440,096,340 4,400,963,400 4,348,237,560
ICB Account Holders 22 6.4,217 642,170 613,080
ICB 1 13,949,298 139,492,980 132,850,460
ICB Unit Fund 1 11,741,682 117,416,820 111,825,550
Employee 3 2,669,147 26,691,470 25,420,450
Non-Resident Bangladeshi 7 184,755 1,847,550 2,002,830
25 5 1 1,085,862,000 10 858 620 00 0 341 542 860

51
 31.12.2023 31.12.2022
Taka Taka

Percentage of shareholding Analysis: Percentage Percentage

Sponsors & Placement 9.52% 9.52%
Foreign Investors 1.17% 1.18%
Sponsors & Placement Company 24.58% 22.55%
General Public 18.26% 18.65%
Institutions (Bank & Insurance) 3.30% 3.42%
Institution (Others) 40.53% 42.05%
ICB Account Holders 0.01% 0.01%
ICB 1.28% 1.28%
ICB Unit Fund 1.08% 1.08%
Employee 0.25% 0.25%
Non-Resident Bangladeshi 0.02% ,0.02%
100% 100%

16.5 Capital Adequacy (Solo Basis)

Position of capital adequacy are given below:-

a) Going Concern Cavital ( Tier -11
Common Equity Tier I (CET-1) Capital
i) Paid-up Capital 10,858,620,000 10,341,542,860
ii) Statutory Reserve (Note: 17) 9,420,732,990 8,386,157,907
iii) Retained Earnings (Note: 19) 1,574,251,006 1,494,121,487
21,853,603,996 20,221,822,254
Adjustment in CET-I (Intangible Assets i.e Software) 212,077,965 218,436,829
Eligible Common Equity Tier I Capital 21,641,526,031 20,003,385,425

Additional Tier! (AT-1) Capital)

SIBLMudaraba Perpetual Bonds 5,000,000,000 5,000,000,000
Available Additional Tier I Capital 5,000,000,000 5,000,000,000
Limit for Additional Tier I Capital 4,664,476,470 4,287,807,544
Total Eligible Tier I Capital 26,306,002,501 24,291,192,969

b) Gone Concern Capital (Tier-III

i) General Provision (Note 14.1(b+c)) 5,522,573,351 5,982,734,936
ii) SIBLMudaraba Subordinated Bonds 7,000,000,000 3,000,000,000
iii) Others (As per RBCA Guideline of BB) 335,523,530 712,192,456
Available Tier II Capital 12,858,096,881 9,694,927,392
Limit for Tier It Capital 12,438,626,612 11,434,153,451
Total Eligible Tier II Capital 12,438,626,612 9,694,927,392

c) Total eligible capital (a +b) 38,744,629,113 33,986,120,360

d) Total Risk Weighted Assets 305,922,957,152 285,853,836,276

e) Minimum Required Capital (10% of Risk Weighted Assets) 30,592,295,715 28,585,383,628

f) Minimum Required Capital including conservation buffer (12.5% of Risk weighted assets)
38,240,369,644 35,731,729,535

g) Total Capital Surplus (c-c) 8,152,333,398 5,400,736,733

Capital Adequacy (Consolidated basis)

Position of capital adequacy are given below:-

al Going Concern Capital ( Tier

Common Equity Tier! (CET-I) Capital

i) Paid-up Capital 10,858,620,000 10,341,542,860
ii) Statutory Reserve (Note: 17) 9,420,732,990 8,386,157,907
iii) General Reserve 13,938,397 13,938,397
iv) Retained Earnings (Note: 19(a)) 1,639,193,057 1,586,161,206
v) Minority Interest in Subsidiaries 1,898 1,903
21,932,486,342 20,327,802,273'
Adjustment in CET-1 (Intangible Assets i.e Software) 213,113,729 219,437,677
Eligible Common Equity Tier I Capital 21,719,372,613 20,108,364,595

Additional Tier! (AT-I) Capital

i) SIBLMudaraba Perpetual Bonds 5,000,000,000 5,000,000,000
Available Additional Tier I (AT-I) Capital 5,000,000,000 5,000,000,000
Limit for Additional Tier I Capital 4,683,049,567 4,312,791,595
otal Eligible Tier I Capital 26,402,422,18 4,421,156,190
IQUE

Ctityt
52 3Acantarlsz
12,„
'9* * '064
 31.12.2023 31.12.2022
Taka Talus

b) Gone Concern Capital (Tier-II)

i) General Provision {Note 14.1(b+c) 5,522,573,351 5,982,734,936
ii) SIBLMudaraba Subordinated Bonds 7,000,000,000 3,000,000,000
iii) Others (As per RBCA Guideline of BB) 316,950,433 687,208,405
Available Tier II Capital 12,839,523,784 9,669,943,341

Limit for Eligible Tier II Capital 12,488,156,460 11,500,780,826

Total Eligible Tier II Capital 12,488,156,460 9,669,943,341
c) Total eligible capital (a +b) 38,890,578,639 34,091,099,531

d) Total Risk Weighted Assets 306,807,985,224 286,799,462,864

e) Minimum Required Capital (10% of Risk Weighted Assets) 30,680,798,522 28,679,946,286

t) Minimum Required Capital including conservation buffer (12.5% of Risk Weighted Assets) 38,350.998.153 35,849,932,858

g) Total Capital Surplus (c-e) 8,209,780,117 5,411,153,245

Capital to Risk Weighted Asset Ratio (Solo basis)

Particulars 31.12.2023 31.12.2022
Requirement Capital Maintained Requirement Capital Maintained
Going Concern Capital: (Tier-I ) 6.00% 8.60% 6.00% 8.50%
Common Equity Tier I Capital: (CET-1) 4.50% 7.07% 4.50% 7.00%
CET-1 Plus Conservation Buffer 7.00% 7.07% 7.00% 7.00%
Gone Concern Capital: (Tier-11) 0.00% 4.07% 0.00% 3.39%
Minimum CRAR 10.00% 12.66% 10.00% 11.89%
Minimum CRAR Plus Conservation Buffer 12.50% 12.66% 1 12.50% 11.89%

Capital Adequacy Ratio (Consolidated basis)

Particulars 31.12.2023 31.12.2022
Requirement Capital Maintained Requirement Capital Maintained
Going Concern Capital: (Tier-I ) 6.00% 8.61% 6.00% 8.52%
Common Equity Tier I Capital: (CET-1) 4.50% 7.08% 4.50% 7.01%
CET-1 Plus Conservation Buffer 7.00% 7.08% 7.00% 7.01%
Gone Concern Capital: (Tier-II) 0.00% 4.07% 0.00% 3.37%
Minimum CRAR 10.00% 12.68% 10.00% 11.89%
Minimum CRAR Plus Conservation Buffer 12.50% 12.68% 12.50% 11.89%

17 Statutory Reserve
Opening balance 8,386,157,907 7,605,264,974
Add: Addition during the year 1,034,575,083 780,892,933
9„420 732,990 8 86 157 907
17(a) General Reserve
Opening balance 13,938,397 13,938,397
Add: Addition during the year
Less: Adjustment during the year
13,938,397 13,938,397

18 Revaluation Reserve on fixed assets

Carrying (Revalued) amount of fixed assets (Land and Building) 543,259,152 557,024,130
Less: Adjustment made based on difference amount of depreciation 13,420,854 13,764,977
Remaining balance of revaluation reserve 529,838,298 543,259,152

Property class under the head 'Land and Building' have been revalued in the year 2011, in accordance with the applicable rules and regulations as per 1AS-16,
'Property, Plant and Equipment' and as per Bangladesh Bank BCD circular letter no: 12 & 18, dated: 20 April 1993 & 15 June 1993 and BRPD circular no: 10,
dated: 25 November 2002. The valuation firms have used the fair value model to revalue the class of property. The valuation was not reviewed after year
2011.

a. The effective date of revaluation:

The revaluation was completed by the valuers on 20.03.2011. And The revaluation effect on the assets have been accounted for on 30.03.2011.
b. Valuer:
Two separate independent valuer firm 'Commodity Inspection Services (BD) Ltd.' and 'Royal Inspection International Ltd.' have been assigned to carry
on the valuation job.
c. Method used for determination of fair value:
The valuer firms have used the market-based evidence to appraise the class of property 'Land and Building'. They have used current market prices as reference
that has recently been observed for selling the land and buildings of same class of the same locality for appraising the fair value. Using the appraisal they have
etermined the amount of revaluation of the assets.

53
 (amounts in Taka)

Class of Cost less Revaluation Surplus Depreciation on Depreciation on Amount of adjustment

Location depreciation as on 31.12.2023 revalued amount cost for the year 2023
pime,M

--.
City Center, Head Office Building 296,853,825 708,943,306 25,144,928 7,421,346 17,723,583

Chandaikona Branch Land 2,111,623 10,218,377 - -

Building 874,383 976,613 46,275 21,860 24,415
Savar Branch Building 23,834,049 21,611,197 1,136,131 595,851 540,280
Panthapath Branch Building 19,830,577 40,045,729 1,496,908 495,764 1,001,143
Rampura Branch Building 29,517,236 28,086,356 1,440,090 737,931 702,159
Ithulna Branch Building 13,906,683 10,957,383 621,602 347,667 273,935
Nawabpur Road Branch Building 48,537,188 43,166,017 2,292,580 1,213,430 1,079 150
435,465,564 864,004,979 32,178,514 10,833,849

31.12.2023 31.12.2022
Taka Taka
19 Retained Earnings
Opening balance 1,494,121,487 1,226,046,292
Less: Issue of cash dividend 5% (517,077,143) (492,454,422)
Less: Issue of Stock dividend 5% (517,077,140) (492,454,420)
Add: Transferred from Profit & Loss Account 1,092,939,197 1,231,092,073
Add: Transferred from Revaluation Reserve for Fixed Assets 21,344,665 21,891,964
Less: Prior year dividend income adjustment (60)
1,574,251,006 1,494,121,487

19(a) Consolidated retained earnings

Opening Balance 1,586,161,206 1,363,252,358
Less: Issue of cash dividend for SIBL shareholders 5% (517,077,143) (492,454,422)
Less: Issue of Stock dividend 5% (517,077,140) (492,454,420)
Add: Transferred from current year retained earnings of SIBL & its subsidiaries (note 19.1(a)) 1,065,841,469 1,185,925,725
Add: Transferred from Revaluation Reserve for Fixed Assets of SIBPLC 21,344,665 21,891,964

1,639,193,057 1,586,161,206

SIBL has invested amount of Taka- 1,537,498,800 and Taka- 249,999,200 in two of its subsidiaries 'SIBL Securities Ltd. (SIBL SL)' and 'SIBL Investment Ltd.
(SIBL IL)' respectively. SIBL holds 99.999922% and 99.99968% of total shares of its subsidiaries 'SIBL SL' and 'SIBL IL.' respectively while the other
shareholders of the subsidiaries hold 0.000078% and 0.00032% of total shares respectively.
Details of the shareholding position is as under:

SI No. Shares Value of shares Percentage of holdin . of shares

Shareholders SIBL IL
flO. SIBL SL SIBL IL SIBL SL SIBL IL SIBL SL
1 Social Islami Bank
Limited 15,374,988 2,499,992 1,537,498,800 249,999,200 99.999922% 99.99968%
2 Alhaj Nasiruddin 1 1 100 100 0.000007% 0.00004%
3
Mr. Md. Sayedur Rahman 1 - 100 0.000007% _
4 Major (Retd.) Dr. Md. 1 1 100 100 -0.000007% 0.00004%
Rezaul Hague
5 Alhaj Sultan Mahmood I 1 100 100 0.000007% 0.00004%
Chowdhury
6 Mr. Abdul Awal Patwary 1 1 100 100 0.000007% 0.00004%

7 Hamdard Labomtories 1 - 100 - 0.000007% -

(Waqf) Bangladesh,
Represented by: Mr.
Anisul Hogue
8 Mrs. Nargis Mannan 1 - 100 - 0.000007%
9 Mr. Kamaluddin Ahmed 1 1 100 100 0.000007% 0.00004%
10 Alhaj Sk. Mohammad 1 1 100 100 0.000007% 0.00004%
Rabban Ali
i 11 Mr. A. Jabbar Mollah 1 - 100 - 0.000007% -
12 Mr. Md. Kamal Uddin I 1 100 100 0.000007% 0.00004%
13 Mr. Belal Ahmed 1 I 100 100 0.000007% 0.00004%
15,375,000 2,500,000 1.537,500,000 250,000,000 100.00% 100.00%

19.1 Current year retained earnings

Social Islami Bank Limited
Profit after tax 2,564,130,096 2,429,782,845
Less : Statutory Reserve 1,034,575,083 780,892,933
Less : Start up Fund 25,641,301 24,297,828
Less : Coupon/dividend on perpetual bond 410,974,515 393,500,011
1,092,939,197 IQ 1,092,073

54
 31.12.2023 31.12.2022
Taka Taka
19.1.(a) Consolidated Current year retained earnings
Profit after tax of SIBL 2,537,032,411 2,384,616,523
Less :Statutory Reserve 1,034,575,083 780,892,933
Less: Start up Fund 25,641,301 24,297,828
Less : Coupon/dividend on perpetual bond 410,974,515 393,500,011
Profit/(Loss) attributable to Group 1,065,8,41,512 1,185,925,751
Add: Profit/(loss) of subsidiaries
Add: Current year profit/(loss) of subsidiaries
SIBL Securities Limited 26,588,517 31,177,838
SIBL Investment Limited 7,813,749 530,781
34,402,265 31,708,619
Less: Non controlling interests of profit/(loss) attributable for current year
SIBL Securities Limited 19 24
SIBL Investment Limited 24 2
43 26
Less: Common income (Dividend) for elimination
SIBL Securities Limited 61,499,952 76,874,940
Profit/(Loss) attributable to parent 1,065,841,468 1,185,925,726

I9(b) Non-controlling interest

SIBL Securities Limited
Paid up capital 1,537,500,000 1,537,500,000
Retained eamings 72,362,892 72,362,892
Net Assets 1,609,862,892 1,609,862,892
SIBL Investment Limited
Paid up capital 250,000,000 250,000,000
Retained earnings 27,490,882 19,677,133
Net Assets 277,490,882 269,677,133
Non-controlling interests
SIBL Securities Limited, @0.000078% of net assets 1,272 1 .31 I
SIBL Investment Limited, @0.00032% of net assets 674 652
Total non-controlling interest 1,946 1,963 .
Less: Dividend paid to other shareholders
SIBL Securities Limited 48 60
1,898 1.903
M.1.211.11,111111.121.2ZIMMZ(.2

20 Contingent liabilities
20.1 Acceptances and Endorsements
Bill Bankers' liabilities (DP) 33,101,950,400 35,214,068,400
Bill Bankers' liabilities (BB/FO) 926,391,000 1,153,003,000
Bill Bankers' liabilities (BB/LO) 5,511,600,667 6,107,786,000
Bill Bankers' liabilities (EPZ) 328,085,000 677,541,000
Bill Bankers' liabilities Others 363,134,000 314,620,851
40,231,161,067 43,467,019,251
20.2 Letter of Credit
L/C Bankers' liabilities (DP) 1,737,807,000 2,650,787,000
LC Bankers' liabilities (BB/F0) 1,033,545,000 996,426,000
LC Bankers' liabilities (BB/L0) 3,127,205,000 2,427,391,100
L/C Bankers' liabilities (Cash) 11,087,442,400 8,931,263,438
L/C Bankers' liabilities (EPZ) 883,630,000 1,745,474,000
LC Bankers' liabilities (Others) 343,266,000 83,697,500
18,212,895,400 16,835,039,038
20.3 Letters of guarantees
Letters of guarantee =MP 9,657,579,979 8,965,901.893
20.4 Bills for collection
In-ward bills for collection
Out-ward Bills for Collection 8,756,058,669 8,492,000,669
8,756,058,669 8,492,000,669
20.5 Other Contingent Liabilities
20.6 Other Commitments
Total Off-balance sheet items 76,857,695,115 77,759,960,851
Income Statement (Note-21 to Note-39)
Income:
Income from Investment (Note-21) 25,244,019,245 21,643,793,225
Income from Investment in Shares & Securities (Note-23) 1,481,632,839 1,407,929,007
Commission, Exchange and Brokerage Income (Note-24) .2,797,494,183 3,803,725,179
Other operating income (Note-25) 826,128,694 888,118,466
30,349,274,961 27,743,565,877
txpenses:
Profit paid on Deposits (Note-22) 17,677,123,207 15,648,810,651
Administrative expenses 4,736,365,088 4,364,898,347
Other operating expenses 2,511,834,981 2,363,413,037
Depreciation on Banking assets 629,454,178 631,420,596
25,554,777,455 23,008,542,631
ncome over expenditure \ 4,794,497,507 4,735,023,246

55
 31.12.2023 31.12.2022
Taka Taka
21 Income from Investment
Profit on Murabaha 260,023,094 226,301,142
Profit on Bai-Muazzal 16,406,375,336 13,744,973,302
Profit on Hire-Purchase 4,646,762,421 4,082,743,327
Profit on Musharka 9,790,373 14,460,206
Profit on Bai-Salam 105,205,800 71,620,656
Profit on Quard against MTDR, Scheme and others 792,957,878 747,573,310
Profit on Inland Document Bill Purchased 388,913,776 385,594,401
Profit on Foreign Document Bill Purchased 1,110,875,877 1,230,823,088
Profit on Ijarah 29,911,326 33,155,926
Profit on Investment against Mudaraba Deposit with other Banks and NBFIs & BD.Govt. 837,733,069 574,995,157
Profit on other investments (Card, Wakalat fee etc.) 442,380,680 270,801,357
Profit on Mudaraba 213,089,616 260,751,352
25,244,019,245 21,643,793,225

21(a) Consolidated income from investment

Social Islami Bank Ltd. 25,244,019,245 21,643,793,225
Add: Incomefrom investment ofsubsidiaries ofSIBL 126,014,827 117,109,611
SIBL Securities Ltd. 124,171,097 117,109,611
SIBL Investment Ltd. 1,843 730
Grand total of consolidated investment income 370 034 072
25„ _ if• 21,760,902,836

22 Profit paid on Deposits

Profit paid on deposits
Mudaraba Savings Deposits (MSD) 971,448,626 932,782,616
Mudaraba short notice deposit (MSND) 884,503,681 555,661,121
Mudaraba term deposit (MTDR) 10,350,488,194 9,942,619,163
Cash waqf fund deposit 35,149,612 26,789,358
Profit paid on Scheme Deposits & others 3,820,882,189 3,598,095,035
16,062,472,302 15,055,947,292
Profit paid on borrowings 1,170,824,707 187,293,830
SIBL Mudaraba Subordinate Bond 443,826,198 405,569,529
Total profit paid on deposits and borrowings 17,677,123,207 15,648,810,651

22(a) Consolidated Profit paid on Deposits

Social Islami Bank Ltd. 17,677,123,207 15,648,810,651
Add: Incomefrom investment ofsubsidiaries ofSIBL 73,407,851 71.616.883
SIBL Securities Ltd. 73,407,851 71,616,883
SIBL Investment Ltd.
Grand total of consolidated Profit paid on Deposits 17,750,531,058 15,720,427,535
23 Income from Investment in Shares & Securities
Income from Investment in Islamic Bond 678,581,946 583,023,697
Income from Investment in Shares 12,556,589 40,622,402
Income from Mudaraba Subordinate Bond 147,255,471 150,371,826
Income from Mudaraba Perpetual Bond 378,376,968 364,809,684
Income from Beximco Green Sukuk bond 88,827,397 82,083,656
Dividend Income 176,034,468 187,017,742
1,481,632,839 1,407,929,007

Social Islami Bank PLC. has investment of Tk. 100.00 crore in Bangladesh Govt.Islamic Investment Bond for which 4.91%, average rate of income has been
provided for January-December 2023. The nature of the Fund is to generate profit according to Mudaraba Principle.

23(a) Consolidated income from Investment in Shares & Securities

Social Islami Bank PLC. 1,481,632,839 1,407,929,007
Add: Income from Investment in Shares & Securities of subsidiaries of SI BPLC 43,887,538 29,199,755
SIBL Securities Ltd. • 37,311,025 27,119,297
SIBL Investment Ltd. 6,576,513 2,080,458
Less: Common income for elimination
SIBL Securities Ltd. 61,499,952 76,874,940
Grand total of consolidated income from Investment in Shares & Securities 1,464,020,425 1,360,253,823
24 Commission, Exchange & Brokerage
Commission 632,290,327 753,116,234
Exchange income 2,165,203,856 3,050,608,945
2,797,494,183 3,803,725,179
24(a) Consolidated income from commission, exchange & brokerage
Social Islami Bank Ltd. 2,797,494,183 3,803,725,179
Add: Incomefrom commission, exchange & brokerage ofsubsidiaries ofSIBL 59,256,483 106,149,985
SIBL Securities Ltd. 59,256,483 106,149,985
SIBL Investment Ltd.
Grand total of consolidated income from commission, exchange & brokerage c34F I QUe 2,856 750,666 3,909,875,163
41)
x'c six!?rp 11'
56
44, Aceoftet
 31.12.2023 31.12.2022
Taka Taka
25 Other Operating Income
P & T charge recovered 472,396
Courier Charges Recovery & Others 6,479,063 10,137,574
Services & charges 495,976,606 429,126,749
SWIFT/ Return charge recovered 46,605,543 54,469,130
Other charges (Note: 25.1) 277,067,482 393,912,618
826,128,694 888,118,466
25(a) Consolidated other operating income
Social Islami Bank Ltd. 826,128,694 888,118,466
Add: Other operating Income of subsidiaries ofSIBL 579,930 1,155,163
SIBL Securities Ltd. 579,930 1,155,163
SIBL Investment Ltd.
Grand total of consolidated income from other operating income 826,708,624 889,273,628

25.1 Other Charges

Rent receipts 4,409,850 4,008,002
Income from sale of forms 120,750 159,365
Service charge on SIBL Cards 189,544,624 165,165,880
Notice pay earnings 6,672,858 9,012,349
Miscellaneous income 76,319,400 215,567,022
277.067,482 = 393,912,618
====== == =
26 Salary & Allowances
Basic Salary 1,851,044,411 1,779,595,867
Allowances 1,994,374,830 1,748,452,777
Bonus 618,131,334 519,563,762
LIE Salary & Allowances 43,538,840 120,029,982
Bank's Contribution to Provident fund 182,172,039 159,598,897
Bank's Contribution to Social Insurance fund 18,225,616 15,986,710
SIBL Group life Insurance Premium 10,038,022 4,548,682
4,717,525.092 4,347,776,677
26(a) Consolidated expenses for Salary and Allowance
Social Islami Bank Ltd. 4,717,525,092 4,347,776,677
Add: Salary and Allowance for subsidiaries 48,178,642 44,793,620
SIBL Securities Ltd. 48,178,642 44,793,620
SIBL Investment Ltd.
4,765,703,734 4,392,570,297
27 Rent, Taxes, Insurance & Electricity etc.
Rent, Rates & Taxes (note: 27.1) 376,897,534 259,824,228
Insurance (note: 27.2) 189,173,658 210,672,082
Electricity, Lighting & Water (note: 27.3) 136,354,878 114,488,763
702,426,069 584,985,073
.8111MND NIIMIN/N101/MINI.

27.1 Rent, Rates & Taxes

Rent, Rates & Taxes (note: 27.1.1) 516,414,191 464,315,156
Less: rent expenses under IFRS-16 • 139,516,658 204,490,929
376,897,534 259,824,228
*While implementing IFRS 16 (leases), the bank recorded interest expenses on lease liability and depreciation on right of use assets (ROU) instead of
charging rental expenses of Taka 139,516,658 (excluding VAT) in 2023 against those rental premises that have been treated as right of use assets (ROU)
(lease assets) however VAT on those rent has been charged as rent.

27(a) Consolidated expenses for rent, taxes, insurance & electricity

Social Islami Bank Ltd. 702,426,069 584,985,073
Add: Rent, Taxes, Insurance & Electricity etc. of subsidiaries 7,480,810 62,050
SIBL Securities Ltd. 7,480,810 62,050
SIBL Investment Ltd.
709,906,879 585,047,123
Rent, Rates & Taxes
Office rent 7,480,810 62,050
Less: Adjsutment due to execution of IFRS 16 for the first time
7,480,810 62,050
VAT on office rent
Total Rent, Rates & Taxes 7,480,810 62,050
27.1.1 Rents, Rates, Taxes, Insurance & Lighting etc.
Rents
Rent (Office) 497,183,029 446,500,832
Rent (Garage) 371,680 344,480
Rent (Godown & others) 11,897,682 10,492,389
509,452,391 457,337,701
Rates and Taxes 6,961,801 6,977,455
Total Rents, Rates & Taxes 16,414,191 464,315,156

57
 31.12.2023 31.12.2022
Taka Taka

27.2 Insurances
Insurance Premium in Counter 1,621,991 1,342,045
Insurace Premium in Transit 5,905,681 6,035,474
Insurance Premium SafeNault 9,803,079 8,413,508
Insurance Premium on deposit 169,060,902 192,370,691
Insurance Premium on Vehicle 997,351 905,849
Other Insurance 1,784,654 1,604,515
189,173,658 210,672,082
273 Lighting & Electricity
Lighting & Electricity Bill (Office) 124,870,164 105,310,679
Lighting & Electricity Charges (Office) 7,178,432 5,213,231
Sub Total 132,048,595 110,523,910

Water & Sewerage 4,306,282 3,964,853

136,354,878 114.488.763

28 Legal Expenses
Legal Fees & Charge 6,174,118 4,512,593
Stamp Duties 105,874 68,114
Other Legal Expenses 7,211,115 4,622,635
13,491,107 9,203,342

29 Postage, Stamps, Telecommunication etc.

Cable Network rent 225,093 229,127
Postage 1,175,989
Telephone charges 1,384,033 1,487,948
Mobile phone charges 4,382,440 4,279,414
7,162j= 5,996,488

29(a) Consolidated expenses for Postage, Stamps, Telecommunication etc.

Social Islami Bank Limited 7,167,555 5,996,488
Add: Postage, Stamps, Telecommunication etc. expenses for subsidiaries 1,954,335 1,881,575
SIBL Securities Ltd. 1 ,954,3 3 5 1,881,575
SIBL Investment Ltd.
9,121,889 7,878,063

30 Stationery, Printing, Advertisements etc.

Table Stationery 18,771,819 20,247,773
Printing & Stationery 90,211,130 44,434,005
News Paper & Magazine 14,758,597 8,700,210
Television & Radio 22,885,000 33,999,750
Neon Sign, Banner etc. 1,450,352 864,942
Other Publicity 13,237,013 11,846,425
161,313,911 120,093,105

30(a) Consolidated expense of Stationery, Printing, Advertisement etc.

Social Islami Bank Ltd. 161,313,911 120,093,105

Stationery, Printing, Advertisement expense of Subsidiaries of SIBL 337,898 204,555
SIBL Securities Limited. 337,898 204,555
SIBL Investment Limited.
161,651,809 120,297,66(1
iffiXt.

31 Managing Director's salary and allowances

Basic Salary 8,400,000 7,800,000
Allowances 7,899,996 7,141,670
Festival & other Bonus 2,540,000 2,180,000
18,839,996 17,121,670

32 Directors' Fees & Meeting Expenses

Directors Fee 2,270,200 1,999,335
Meeting Expenses 1,878,988 1,780,826
4,149,188 3,780,162
32(a) Consolidated Directors' fees & Meeting Expenses:
Social Islami Bank Limited 4,149,188 3,780,162
Directors' Fees & Meeting Expenses of Subsidiaries of SIBL 288,000 333,000
SIBL Securities Limited 288,000 333,000
SIBL Investment Limited
4,437,188 4,113,162

58
 31.12.2023 31.12.2022
Taka Taka

33 Shariah Supervisory Committee's Fees & Expenses

Shariah Council Meeting Expenses 867,376 444,666
867,376 444,666

34 Depreciation and Repair of Bank's Assets

a) Depreciation of Bank's Assets (Annexure A)
Land
Building 43,838,665 45,555,065
Furniture & Fixtures 114,187,523 101,343,499
Office Appliance & Equipment 187,528,283 168,543,506
Computer Software 22,642,541 19,518,099
Vehicles 1,741,891 2,991,952
Right of use Assets (RoU) 136,365,666 175,305,635
Books 61,179 68,230
506,365,748 513,325,986

b) Repair on Bank's Assets

Building 29,310 148,519
Motor Car/ Vehicle 22,910,195 17,210,616
Furniture Fixture 3,242,687 4,272,335
Mechanical Appliances 22,326,744 18,773,846
Software Maintenance fee 16,273 4,294
Hardware Maintenance fee 9,070 5,980
IT Enable Service Charges 74,554,150 77,679,019
123,088,430 118,094,609
Total of Depreciation and repair of Bank's Assets 629,454,178 631,420,596

34(a) Consolidated balance of Depreciation

Social Islami Bank Ltd. 629,454,178 631,420,596

Add: Depreciation on assets of subsidiaries 4,547,928 6,740,610

SIBL Securities Ltd. 4,547,928 6,740.610
SIBL Investment Ltd.

Add: Repairs & Maintainance on assets of subsidiaries 885,474 875,254

SIBL Securities Ltd. 885.474 875.254
SIBL Investment Ltd.
634.887.580 639,036,460

35 Other Expenses
Local conveyance 19,598,020 18,581,955
Petroleum, oil & lubricants 29,059,301 23,743,260
Entertainment expenses 58,380,117 50,938,985
Traveling allowances 17,680,712 22,154,095
Travelling Foreign 13,298,505 1,745,834
Bank charges 14,322,426 11,801,043
Uniform charges 2,260,770 2,41,251
Subscriptions to Institutions & Others 8,926,055 15,315,981
Banks' clearing house charges 54,998 3,005,548
CIB Charges 1,402,290 1,651,810
Transportation charges 6,150,934 5,781,669
News paper, Journal & periodicals 241,550 201,181
Washing charges 1,593,244 1,298,256
Training expenses Academy/ Internal 1,000 5,500
Training expenses at outside Banks 1,175,240 773,100
Commission Paid to Agent Banking 120,123,698 90,651,806
Direct expenses on investment 9,820 130,060
Up keep of branches/office premises 8,276,745 7,463,000
Excise duty 1,723,513 2,233,000
Computer charges 15,806,012 13,731,986
Security Services 329,125,469 275,326,093
Cleaner Services 8,331,250 8,076,499
Others wages 268,331,122 268,096,067
Photocopy expenses 599,253 644,297
Photography expenses 170,751 166,575
Cash & Bank remittance charges 8,623,875 8,025,340
Honorarium 5,649,281 6,339,800
On-Line Expenses 43,761,027 39,081,872
ATM Rent Hardware 11,858,355 6,750,140
Professional & Rating Fees 18,029,430 11,665,205
Other Utility 44,269,390 45,561,164
balance can, 416.1nrward ,058,834,154 943,392,373

3 ACZA4
59
* i oC a.
 31.12.2023 31.12.2022
Taka Taka
balance brought fbrward 1,058,834,154 943,392,373
Bond issue related Expense 8,708,250 10,968,250
Donation to Government 5,037,000 100,329,000
Donation to Others 487,335 303,137
CSR Ralated Expenditure 4,633 99,481,961
Business Development Exp 50,181,093 18,894,972
Fees Form @ Renewal 10,253,044 6,932,926
Network sharing fees (Visa) 23,589,682 11,078,870
Service Charges 10,706,729 10,749,798
Gratuity expense 188,806,530 181,518,778
Finance cost on lease liabilities as per IFRS-16 29,439,656 38,141,108
Miscellaneous expenses 18,858,795 19,983,193
1,404,906,901 1,441,774,366

35(a) Consolidated Other Expenses

Social Islami Bank Limited 1,404,906,901 1,441,774,366
Add:Other Expensesfor SIBL Securities Limited 11,468,405 17,205,347
License, fees, renewals and incorporation expenses 8,674,562 14,734,625
Entertainment 841,000 1,099,851
Others 1,952,843 1,370,872

Other Expenses for SIBL Investment Limited 99,530 67,530

Bank charge and Excise duty 67,530 67,530
Others 32,000
1,416,474,836 1,459,047,243
I•111M

36 Other Provision
Provision for other assets (note: 14.2.2) 57,386,856 15,000,000
Provision for others (note: 14.2.3) 120,100,000
Mudaraba Profit Distribution (note: 14.6) 20,000,000 10,000,000
Provision for Climate Risk Fund (note:13.8) 5,000,000
Provision for diminution in value of shares and securities (note:14.10) 12,184,716.60 13,949,505
94,571,573 159,049,505

36(a) Consolidated other provision

Social Islami Bank Ltd. 94,571,573 159,049,505
Add:Provision for subsidiaries
SIBL Securities Ltd.
Provision for general reserve
Provision for impairment of margin loan 22,500,000 45,000,000
Provision for capital reserve 3,117,784 7,649,999
Provision for diminution in value of investment 5,000,000 3,803,421
30,617,784 56,453,420
SIBL Investment Ltd. (Provision for diminution in value of investment) 1,188,942
125.189.356 216,691,867

37 Provision against Investment, Off-Balance Sheet items & Others

Provision on classified investment 1,196,198,312 640,468,515
Provision on unclassified investment (113,281,968) (139,703,763)
Provision on Off-Balance Sheet items (57,604,018) 170,744,325
Other provisions (note: 36) 94,571,573 159,049,505
1.119,883,898 830,558,582
•••••••11

37(a) Consolidated Provision against Investment, Off-Balance Sheet items & Others
Social Islami Bank Ltd. 1,119,883,898 830,558,582
Add:Provision for subsidiaries 30,617,784 57,642,363
SIBL Securities Ltd. 30,617,784 56,453,420
SIBL Investment Ltd. 1,188,942
1,150,501,682 888,200,945
NNW

38 Provision for Income Tax

Current year provision (Note: 38.1) 1,395,707,758 1,460,004,839
Deferred Tax expense/(income) (Note: 38.2) 4,051,353 14,676,980
1,399,759,111 1,474,681,819
=MO

38(a) Consolidated Provision for Income Tax

Social Islami Bank Limited 1,399,759,111 1,474,681,819

SIBL Securities Limited 15,528,391 20,155,402

Current year provision 15,528,391 20,155,402
Deferred Tax expense/(income)
SIBL Investment Limited 483,964 270,205
1,415,771,467 1,495,107,426
38.1 Current Year Tax Provision
Provision on tax has been calculated based on Income Tax Ordinance,1984 as amended upto 2023 by the Finance Act
isallowances.

60
38.2 Deferred Tax Expenses/(Income)
Defferred tax expense/(income) for liability/(asset) has been calculated as per Bangladesh Accounting Standard 12.

39 Earning Per Share (EPS)

SIBL has issued 1:1 right share for an amount of Taka- 2,987,815,750 as approved in its 242nd Board Meeting held on 02 March 2011 by the Directors of the
Board. Before right issue SIBL had a total capital of Taka- 2,987,815,750 as on 31.12.2010. The paid up capital was further enhanced by an amount of Taka-
418,294,200, Taka-637,489,940, Talca-351,570,780, Taka-738,298,640, 812,128,500 and Taka-446,670,670 issued as bonus share for the years ended 31
December 2010, 2012, 2015, 2017, 2018, 2019, 2020, 2021 and 2022. Now the total paid up capital after right issue and issue of bonus shares amounts to
Taka- 10,858,620,000 with a total no. of 1,085,862,000 shares having face value @ Taka- 10/share.

31.12.2023 31.12.2022
Taka Taka

Net Profit after Tax 2,564,130,096 2,429,782,845

Less: Coupon/dividend on perpetual bond 410,974,515 393,500,011
Attributable profit for the year 2,153,155,581 2,036,282,834
Number of ordinary shares outstanding 1,085,862,000 1,085,862,000
Earning Per Share (EPS) (Prior year Restated) 1.98 1.88

39(a) Consolidated Earning Per Share (CEPS)

Net Profit after Tax 2,537,032,368 2,461,491,439
Less: Coupon/dividend on 410,974,515 393,500,011
Attributable profit for the year 2,126,057,853 2,067,991,428
Number of ordinary shares outstanding 1,085,862,000 1,085,862,000
Consolidated Earning Per Share (CEPS) (Prior year Restated) 1.96 1.90
Earnings per share has been calculated in accordance with 1AS-33:" Earnings Per Share (EPS)".
Earnings per share (EPS) increased compare to the last year mainly due to increase of net profit after tax.
39 (i) Net Asset Value (NAV) Per Share:
Net Asset Value (Consolidated) 22,481,590,525 20,887,209,462
Net Asset Value (Solo) 22,383,442,294 20,765,081,406
Number of ordinary shares outstanding 1,085,862,000 1,085,862,000
Net Asset Value (NAY) Per Share (Consolidated) (Prior year Restated) 20.70 19.24
Net Asset Value (NAY) Per Share (Solo) (Prior year Restated) 20.61 19.12

39 (ft) Net Operating Cash Flows per share (NOCFPS):

Net Cash flow from operating activities (Consolidated) 9,010,963,560 (1,083,448,803)
Net Cash flow from operating activities (Solo) 9,009,917,876 (1,089,529,203)
Net Asset Value (NAY) Per Share (Consolidated) (Prior year Restated) 1,085,862,000 1,085,862,000
Net Operating Cash Flow Per Share (NOCFPS)(Consolidated) (prior year restated) 8.30 (1.00)
Net Operating Cash Flow Per Share (NOCFPSXSolo) (prior year restated) 830 (1.00)
Net Operating Cash Flow per share has improved mainly due to cash inflow in respect of deposit compare to the previous year.

Notes for Cash Flow Statement (Note-40 to Note-45)

40 Income from Investment
Investment profit receipt 25,244,019,245 21,643,793,225
Add: Opening profit receivable 498,783,519 254,088,308
Less: Closing profit receivable (718,278,812) (498,783,519)
25,024,523,952 21,399,098,015
40(a) Consolidated income from investment
Income from investment of SIBL 25,024,523,952 21,399,098,015
Income from investment of Subsidiaries of SIBL 126,014,827 117,109,611
SIBL Securities Ltd. 124,171,097 117,109,611
SIBL Investment Ltd. 1,843,730
Grand total 25,150,538,778 21,516,207,626

41 Receipts from Other Operating Activities (Other than profit on sale of fixed assets)
Exchange income 2,035,168,000 2,842,237,111
Rent receipts 4,409,850 4,008,002
P & T charge recovered 472,396
Courier Charges Recovery & Others 6,479,063 10,137,574
Notice pay earnings 6,672,858 9,012,349
Miscellaneous income 76,319,400 215,567,022
Services & charges 495,976,606 429,126,749
SWIFT/ Return charge recovered 46,605,543 54,469,130
Service charge on SIBL Cards 189,544,624 165,165,880
Income from sale of forms 120,750 159,365
2,861,296,694 3,730,355,577
41(a) Consolidated receipts from Other Operating Activities (Other than profit on sale of fixed assets)
Receipts from Other Operating Activities of SIBL 2,861,296,694 3,730,355,577
Receipts from other operating activities of Subsidiaries of SIBL 579,930 1,155,163
SIBL Securities Ltd. 579,930 1,155,163
SIBL Investment Ltd.
3,731,510,739

61
 31.12.2023 31.12.2022
Taka Taka
42 Payment to others
Rent (Office) 357,666,371 242,009,904
Rent (Garage) 371,680 344,480
Rent (Godown) 11,897,682 10,492,389
Rates and Taxes 6,961,801 6,977,455
Insurance Premium for cash in counter 1,621,991 1,342,045
Insurance Premium for cash in transit 5,905,681 6,035,474
Insurance Premium for cash in safe/ vault 9,803,079 8,413,508
Insurance Premium on deposit 169,060,902 192,370,691
Insurance Premium for vehicle 997,351 905,849
Other Insurance 1,784,654 1,604,515
Lighting and Electricity Bill (Office) 124,870,164 105,310,679
Lighting and Electricity Charges (Office) 7,178,432 5,213,231
Water and Sewerage 4,306,282 3,964,853
Legal Expenses 13,491,107 9,203,342
Directors Fees and Meeting Expenses 4,149,188 3,780,162
Shariah Supervisory Fees & Expenses 867,376 444,666
Audit Fees 1,150,000 920,000
Repairs and Maintenance 123,088,430 118,094,609
Zakat expenses 216,362,874 196,215,836
Other Expenses (note: 35) 1,404,906,901 1,441,774,366
2,466,441,946 2,355,418,054

42(a) Consolidated payment to others

Social Islami Bank Limited 2,466,441,946 2,355,418,054

Payment to others- Subsidiaries 20,279,719 18,600,681
SIBL Securities Limited 20,157,189 18,510,151
SIBL Investment Limited 122,530 90,530
2,486,721,665 2,374,018,735

43 Reconciliation of Net Profit after Taxation & Operating Profit before changes in operating assets & liabilities
Cash flows from operating activities

Net Profit after Taxation 2,564,130,096 2,429,782,845

(Increase)/Decrease Profit Receivable (219,495,294) (244,695,211)
(Increase)/Decrease Profit Payable on Deposit 1,185,951,409 1,192,576,151
Effects of exchange rate changes on cash & cash equivalents (130,035,856) (208,371,834)
Provision for Tax 1,399,759,111 1,474,681,819
Provision for Investment, Contingent Liability & Others 830,608,300 830,558,582
Depreciation & Amortization of Fixed Assets 506,365,748 513,325,986
Income tax paid (1,587,781,351) (1,300,415,312)
Operating Profit before changes in operating assets & liabilities 4.549,502,164 4,687,443,026

43(a) Consolidated Cash flows from operating activities

Net Profit after Taxation 2,537,032,411 2,461,491,465
(Increase)/Decrease Profit Receivable (219,495,294) (244,695,211)
(Increase)/Decrease Profit Payable on Deposit 1,185,951,409 1,192,576,151
Effects of exchange rate changes on cash & cash equivalents (130,035,856) (208,371,834)
Provision for Tax 1,415,771,467 1,495,107,426
Provision for Investment, Contingent Liability & Others 861,226,083 888,200,945
Depreciation & Amortization of Fixed Assets 510,913,676 520,066,596
Income tax paid (1,604,235,459) (1,325,246,974)
Operating Profit before changes in operating assets & liabilities 4,557,128,436 4,779,128,563

44 Cash Increase/ Decrease in Other Assets

Stock of stationery, stamps and printing materials etc. (valued at cost) 69,506,198 39,368,382
Advance rent 89,507,077 102,048,769
Security Deposit 3,459,517 3,401,359
Branch Adjustments (SIBG) (Note: 9.1) 12,101,459,879 8,750,090,444
Suspense Accounts (Note: 9.2) 657,036,331 425,166,831
Other Prepayments 129,134,000 59,241,494
Share Trading A/C Receivable from SIBL Securities Ltd. 213,551,595 308,278,647
Advance Income Tax 16,796,461,261 15,208,679,910
Profit Receivable from SIBL Securities Limited 353,520,234 218,722,842
Receivable from SIBL Investment Limited 1,903,690 1,903,690
Protested Bills against Investment 325,014,370 325.014,570
balance carried forward 30,740,554,152 25,441,916,940

62
 31.12.2023 31.12.2022
Taka Taka

balance broughtforward 30,740,554,152 25,441,916,940

Receivable from Off-shore Banking Unit 300,912,435
Dividend Receivable Account 868,312,619 785,424,619
Profit Receivable from Mudaraba Subordinated Bond 61,182,603 40,898,630
Investment in subsidiary: SIBL Securities Limited 1,537,499,000 1,537,499,000
Investment in subsidiary: SIBL Investment Limited 249,999,400 249,999,400
Profit Receivable for SME Stimulous fund 79,411,985
Profit Receivable from Mudaraba Perpetual Bond 361,909,310 356,627,411
Profit Receivable from Beximco Green Sukuk 36,295,888 38,268,491
Others (Note: 9.3) 519,025,228 134,957,602
34,374,778,201 28,965,916,511
Difference between (2022, 2021) (5,408,861,689) (9,921,21 1,818)
Advance Income Tax 1,587,781,351 1,300,415,312
Net change in Other Assets (3,821,080,338) (8,620,796,506)

44(a) Consolidated cash increase/decrease in other assets

Social Islami Bank Limited 34,374,778,201 28,965,916,511

Cash Increase/ Decrease in Other Assets of subsidiaries 707,087,903 735,799,158
35 081,866,104 . 29,701,715,669
Difference between (2022, 2021) (5,380,150,435) (9,722,972,545)
Advance Income Tax 1,604,235,459 1,325,246,974
Consolidated net change in Other Assets (3,775,914,975) (8,397,725,571)

45 Cash Increase/ Decrease in Other Liabilities

FC Charge 2,050,976 2,000
Adjusting A/C (Cr.) Balance 16,551,890 11,555,186
Other Payable 2,750,230 1,863,613
Compensation and Profit Suspense (note: 14.3) 4,198,421,032 3,932,091,419
BEFTN Adjustment Account 20,800,092 30,778,270
Parking Account 117,007,430 53,065
Lease liabilities as per IFRS-16 339,401,866 449,478,868
ATM & Other Settlement for Q-Cash (11,049,582) (10,546,910)
4,685,933,933 4,415,275,511
Cash Increase/ (Decrease) in Other Liabilities 270,658,422 (16,763,556)
Difference between (2023 & 2022) 270,658,422 (16,763,556)
Add: Transfer to Provision for Investment from Write- off (In Yr. 2023) 58,435,282 76,711,327
Add: Zakat expense transferred to Sadalca Fund 216,362,875 196,215,837
Less: Zakat distributed during the year 122,634,898 113,365,052'
Less: Mudaraba Profit distribution transferred during the year 10,000,000 24,500,000
Less: Adjustment of other provision during the year 120,094,454
Less: Adjustment of provision for Suspense A/C made during the year 27,559,389
Less: Prior year dividend income adjustment 60
Less: Written off/ Waiver of investment during the year 966,968,592 691,088,872
(701,800,816). (572,790,316)

45(a) Consolidated cash increse/decrease in other liabilities

Cash Increase/ Decrease in other liabilities of Social Islami Bank PLC. 4,685,933,933 4,415,275,511
Cash Increase/ Decrease in Other Liabilities ofsubsidiaries 270,169,495 488,737,428
4,956,103,428 4,904,012,939

Difference between (2023, 2022) 52,090,488 (668,122,546)

Other changes in other liabilities of Social Islami Bank PLC. (928,002,020) (506,497,788)
Net change in Other Liabilities-Social Islami Bank PLC. 875 911 532 1 174,620 334

46 Cash and Cash Equivalent

Cash in Hand 4,897,399,344 4,835,583,834
Balance with Bangladesh Bank & Sonali Bank Limited (as agent of Bangladesh Bank) 29,260,845,550 22,086,752,023
Balance with Other Banks & Financial Institutions-in Bangladesh 14,309,052,144 10,049,048,412
Balance with Other Banks & Financial Institutions-outside Bangladesh 1,997,889,368 2,520,897,414
50„465 186 406
_ 39,492,281,683

46(a) Consolidated Cash and Cash Equivalent

Social Islami Bank Limited 50,465,186,406 39,492,281,683
Cash and Cash Equivalent ofsubsidiaries 406,049 596,714
SIBL Securities Limited. 59,070 151,762
SIB1 Investment Limited. 346,979 444,952
50,465,592,455 39,492,878,397

63
47 Number of Employees
The number of employees engaged for the whole year or part thereof who received a total remuneration of Tk. 36,000 p.a or above were 3995.
48 Audit Committee
following:
The Board of Directors in its 390th meeting (Emergency) held on 30.03.2017 reconstituted the Board Audit Committee comprising with the

Status with the

SI. No. Name Status with the Bank Committee
Professor A J M Shafiul Alam Bhuiyan Ph.D Independent Director Chairman up to 13.11.23
2 Mr. Md. Kamal Uddin Director Member
3 Dr. Md. Jahangir Hossain Director Member

The Audit Committee of the Board was duly constituted by the Board of Directors of the Bank and reconstituted in the 412th Board of Directors Meeting held
on 21.03.2018 in compliance with the Bangladesh Bank and Bangladesh Securities Exchange Commission Guidelines. The Audit Committee assists the
Board in fulfilling its oversight responsibilities where accountability stands for financial reporting process, Internal Control System, Internal and External
audit process, management of the risks of the Bank. The Committee review, monitor and assess the activities & performance of the Bank and establish the
policies and procedures which comply with the existing laws & regulations.

Meetings of the Audit Committee:

The Board Audit Committee had 160 nos. (One hundred sixty) Meetings in the previous years since inception in the year 2003, out of which 05 Meetings were
conducted in the Year 2023 and the attendance of the members was as follows:
Tenure of No. of Meetings No. of Meetings
SI. No. Vice Chairman Attended
Membehhip Held
21.03.2018 to
Professor A J M Shafiul Alam Bhuiyan Ph.D 5 5
13.11.23

2 Mr. Md. !Carnal Uddin 21.03.201810 till date 5 5

—
3 Dr. Md. Jahangir Hossain 21.03.2018 to till date 5 5

Disclosure by Audit Committee:

The Committee reviewed the Quarterly Financial Statements as well as the yearly financial statements for the year 2022 of the Bank and
subsequently recommended to the Board for consideration and approval.
The Committee also reviewed the integrity of the financial statements of the Bank to ensure that these reflect a true and fair view of the Bank's
statement of affairs.
The Committee while reviewing the financial statements ensured that proper disclosure required under International Accounting Standards as

adopted in Bangladesh have been made and also complied with the Companies Act and various other rules and regulations applicable for business.
The Committee discussed with the statutory auditors about the nature and scope of audit as well as had post-audit discussions to address areas of
concern.
The Committee discussed and reviewed compliance position of inspection report on various Branches, Division as well as Core Risk
Management" conducted by Bangladesh Bank based on 30 June 2022 and the "Management Letter on financial statements" for the year ended 31
December 2022" of SIBL submitted by the external auditors for onward submission to the Board if needed.

The Committee also reviewed the financial statements/investments of the subsidiaries: SIBL Securities Limited and SIBL Investment Limited and
SIBL Foundation Hopital.
Pursuant to Condition No. 5.(6).(a) of the Corporate Governance Guidelines issued by BSEC, the Committee reviewed the Internal Control
System and Financial Statements. The Committee observed that there was no conflict of interest or material defect in the internal control system of
the Bank.
The Committee reviewed the Integrated Annual Health Report of SIBL for the year-2022 and recommended to the Board for consideration and
approval
The Committee approved the risk based yearly audit plan and gave direction to the internal auditors where appropriate for carrying out in depth
audit to ensure that the company or its assets are not exposed to undue risk.

The Committee reviewed the Internal Audit Reports and suggested appropriate actions where needed. The Internal Auditors were advised to
carryout audit of all the branches, sub-branches, agent banking outlet and other subsidiaries of the Bank as per risk based yearly audit plan.

The Committee reviewed IC&CD Manual and suggested appropriate actions where needed. The Internal Auditors were advised to carry out the
instruction of the IC&CD Manual.

The Committee recognized the observations of the Internal Audit Division regarding internal control, activities and suggestions made to improve
operational systems and procedures and their implementation.

The Committee reviewed the compliance position, policies, regulations and applicable law in general.
The Committee observed that risk management associated with the Banking business was adequately controlled.

64
49 Related Party Disclosures

49.1 Name of the Firms / Business Organizations where the Directors of the Social Islami Bank Limited have got interest as on 31 December 2023:

SL Name of Firms/ Business Organizations Where the Directors of

Name SIBL have got interest
No
1 Mr. Belal Ahmed Managing Director
Chairman Unitex Spinning Limited
(Representative ofUnitex Steel Mills Limited) Unitex Composite Mills Limited
Unitex LP Gas Limited
Unitex Petroleum Limitedl
Unitex Cement Limited
Unitex Steel Mills Limited
Padma Wears Limited
2 Md. Sayedur Rahman Chairman
Vice Chairman Rans Real Estate Ltd.
(Representative of Prasad Paradise Resorts Limited) Managing Director
Lodestar Fashions Limited
Mid Asia Fashions Limited
3 Md. Kamal Uddin Managing Director
Vice Chairman Chittagong Builders & Machinery Ltd.
(Representative of Lion Securities and Investment Limited) Merchant Securities Limited
Sifang Machine House Limited
Merchant Auto Limited
CBM Housing Limited
South Green Limited
Director
ASM Chemical Industries Ltd.
Central Hospital (Pvt.) Ltd.
Sifang Securities Limited
Hurdco International School.
Universal Health Services & Research Ltd.
Advisor
Mercantile Insurance Company ltd.
Mercantile Islami Life Insurance Ltd.
Proprietor
CBM Parts House
CBM Consortium
4 Dr. Md. Jahangir Hossain Nil
Director
(Representative of Reliable Entrepreneurs Limited)
5 Mr. Arshadul Alam Chairman
Director Jaba and Brothers C&F (Pvt.) Ltd.
(Representative of Leader Business Enterprise Limited) Jesco Bangladesh Ltd.

Managing Director
Jesco Capital Management Ltd.
Director
Uni-Trade International Ltd.
Nishat Traders Ltd.
6 Mr. Ali Hasan Md. Mahmud Ribon Chairman
Director M/S. Mahmud Ribon
(Representative of Dynamic Venture Limited)
7 Mrs. Jebunnesa Akbar Nil
Director
(Representative of Unitex Cement Limited)

8 Mr.Mahmudul Alam Proprietor

Director Paragon Transport
(Representative of Global Trading Corporation Limited)

9 Mr. Mohammad Abul Kalam Nil

Director
(Representative of Hasan Abasan (Pvt.) Limited)

10 Mrs. Badrun Nessa Alam Proprietor

Director MIS. Moni Traders
(Representative of Percepta Endevours Limited)

49.2 Significant contracts where Bank is a party and where in Directors have interest: Nil

65
49.3 Lending Policies to Related Parties:
Lending to related parties is effected as per requirements of Section 27(1) of the Bank Companies Act, 1991.
A
Name of the Outstanding Amount
Name of Party Relationship Nature of Investment Status
Director (Taka)

Funded Liability

SIBL Securities Ltd. NA Subsidiary Quard 8200.00 lac UC

SIBL Foundation Hospital & Diagnostic A concern of SIBL

NA Quard- E- Hasana 10981.07 lac UC
Center Foundation

B Investment Policies to Related Parties

Lending to related parties is effected as per requirements of section 27 (1) of Bank Companies Act,1991
C Business other than Banking business with any related concern of the Directors as per Section 18 (2) of the Bank Companies Act, 1991: Nil

D Investments in the securities of Directors and their related concern: Nil

E Shares issued to Directors and Executives without consideration or exercisable at discount: Nil

50 Post Balance Sheet events (IAS-10)

No material events occurring after balance sheet date came to our notice, which could affect the values reported in the financial statements significantly.

1. Dividend
The Board of Director has authorized the financial statements for issue on and recommended stock dividend @ 5% 8c Cash dividend @ 5% for the year ended
31 December 2023.

51 General
(i) Figures appearing in these financial statements have been rounded off to the nearest Taka.
(ii) The expenses, irrespective of capital or revenue nature, accrued/due but not paid have been provided for in the books of the Bank.

(iii) Figures of previous year have been rearranged wherever necessary to conform the current year's presentation.
(iv) All types of financing made to the clients have been shown under the head 'Investment' whereas investment made in different shares and securities of
Government and others companies are shown as investment shares and securities.
(V) The Bank incurs expenditure in relation to its Corporate Social Responsibility (CSR) throughout the year. The budget for the CSR expenditures are met up
from various source including zakat and other sources. The Climate Risk Fund is also a part of this CSR expenditures.

(VI) As per FRC letter no.178/FRC/APR/2021/27(47), dated: 09 December 2021 and BRPD Circular no-04 and 35, dated January 04,2021 and July 06, 2021.
Moreover, the bank has already signed a MOU with the Institutions of Chartered Accountants of Bangladesh (ICAB) to obtain necessary access to the
Document Verificattion System (DVS) for checking information of the Investment client financial statements. In this regard, we have collected the audited
financial statements as per the FRC & Bangladesh Bank circulars in all the relevant Investment client cases and the current status of the Bank is as follows:

Particular Number %
Complied Files 441 52%
Total Files 848 100%

66
 4,332,920,158 I
tr) kr, s 'C
Annexure- A
tr
—,.,

31
0

4,400,288,555
0'
0 s.0 •—•

December 2023
,,0 N

Written down
§ en 0 oo,, 0, ,r) ,r. 0.7
,
0" se o6 ,_
,
r.-- s!" .6 -
en EZ., 8 g s

value as at
NI' N 0 ,.' NI
„.., NI N•
.--. en '4
en ,0 s.0
,__, 00 NI en
N..,

I
._.
31 In 00 00 _, en
,..., 00 kr, co o
kri
December 2023 . ,-,..
00
n
s.0
A.. <,.. -0`.,' ..,
t---
,....
V',
,_,,
sID
III
ti
00
N ,--. 06 C4
g 07 .4. 1 0, ,0 0 0, en
s
Charged during Balance at

"7 n. N. Ifl , N ., 'ID "1,

1.--.7 sa OL en s 06 .— tn on
oo -4- C' 'ID
— -4-
_ 0
r-- en el
,r, 00 n.
_ •:, (-,

..,-, ,5 ,5 _ .0 a. 00 .0.
.
,0 NI
kr,
00
el, ;
kr,
0, s0 _
N. 'OP 00
'4:7 09. sz)., N., c':,
the year

06 rw-7 oo e-,1 .— kr) — tr) un

MD ev -4- .4- .0 .0 'C e-4
00 —, tn. .0, r...., 5
DEPRECIATION

,,-; •a-
__, t--- NI •-. ,0 'C en
<r• ._, ,..
')° NI en 0—
(e-, u-,
'-'
during the year

. . . , . . . . .
Adjustment

.
Transfer/
Balance as on 01

o ..r. o c-4 e-4 'C e en

January 2023

C' 4o 'n
oo r.... (-4 r-- (-4 en
. ..o., oo — 5, ,-.1 R—. .tr„ GO 00,
WI 0
e, C. Cr' kr,
,_ s!' ‘.0 0 e‘ii Yo
sr; kr) ,r. cr. -4- en co
V.I. NI NI., 0 ,.. 5 •-•
MD NI.: en ,0 Ni •-• 0 `.0‘
<1' en 0 M
C' <I' N. N . .
.11 N. 'Kr., .-. '-' ,r,
— en en
SOCIAL ISLAMI BANK PLC

Depreciation

e0 e0
Rate of

ke-1
.sig
0 0
e e0 e
0
,_
.— e4 ,_ el

-4- en en s 0 s _,
8,368,718,726
7,929,721,374
31

N N a. C' s
December 2023

— 0
‘o N oo kr,
§ s `R, "—
O 0 cr." .ri .0 06
,_ e,i'
MD N co. a en ,r, kr)
en si en.
Additions during Disposal/ Transfer Balance at

sc)., 0, `D., 0, w.,

N 0 ,_ 0 Irl 0
VI
s.0
N
•-•
„„ NI 00 s.0 ,0
,-,.. al ..1 .5 — 0„
cs, — (.4 _
during the year
COS T/REVALUED*

0. kr, co C' ..
-4- 0 s tr.
* Details of revaluation of Fixed assets is shown in note:18.

en ' 0. . . 07 1,
N O m .r1" s sc
the year

s.0 oo oo ,.0 or, .—.

0 kr, (.1 a".. cc
0 (4 .o cc tr;
en
.4.
N Ri

o nt- n- 00 ce. o r-.. r-e -er00

Balance as on 01

— VD so cr.
,.._ a. C' kr, s lID
8 N ,c,. — .0,
January 2023

0:.
.— as. "I,
O 0 c, t$ ,c,
kr, o6
,_ s ,—,
MD ev en kr, co eNi c:.
5 , Ni , 5 " rn ‘0 5 r..... N ...
N
....
,.... CZ C/,' c:6
,r, 'C
s .— N
Ok en
Nlq N `,1" `,1*
N
_ ev en — 0, on el,
N c-,1 — i--22 s
I

,2 f, t
I 31 December 2023
31 December 2022

..L. .?..
(L.. .5Ea..
.,h,
t Cr
(L)
CO CO) LI. S2 ,.....
a. .5 6L) 0
.0 ..... :8 ..Y
''
"V (.9
.., 00
,.... °0
.-] XI Lt. 0 (A .O4 al
 4,342,947,247 I
4,413,627,223 I
Annexure- B

31
0 0 0 V, CP, 00 0 0
--.

December 2023
0 0 0, ‘r, r ,i s ev

Written down
O en 0, .-, s kr, kr, 0 ,...
0' en- r: sci ..
en -. 0 h -. kr, kr, kr.,
en co en kri .--. 71-., kr,

31 value as at
W,
hi"
--
hi' c5:' .1-- eni
-,
h t--
,.0
en en s
s ,-, oo el rn
..,
,-.

4,072,337,563 I
I
kr, oo kr, ,-. en ,r so so
-.

December 2023
sr, sr, - .1- (--s tr., cc
, rn. r-- en oo -.
''''.., '4). cc..
Charged during Balance at .4-
o
,..6
,t-
.zr"
0
r:
te")
cr,"
CP,
en
s0
.-.
0
en
CV
<I. N. --. as., s or, en., Tr,
rz e Tr' so I-: s--, .- ,G.
oo kr, 0 kr, .1- rsi
kr, oo ‘.0.„ ,- .-. s 'I I
-. en

I
.1 - ,0 -. ,0 ON •C s•C
,0 h h hl Cr, s.0 h h Ch
.
<:, 0 e^.. .0 00 . 00 -- vc;.. w)..
the year

co -1-- - rz - 00 -- en .0
. IATION

en oss .0 kr) -et ',I .0 •-• .0

CO v'i 00 S. 1"--., 0
c, i Tr' oci esi' -. crs eL 0
.1- - oo c-4 en .. h
during the year
DEPREC

1 1 t 4 1
Adjustment
Transfer/

- s o
Balance as on 01

..-1 c---1 co

3,041,357,289
O Tr - si
Tr kr, s oo
January 2023

C' 00
, 0.. ,.0 or, eN CI k.0 Tr 00
4-, sr rA 6 r: Tr" 0 e..)-
o ...) o o kr) 0 Tr es1
kr) .- en st o cr‘ (-1„ 't..
v.5 tri Tr .:5 -cr- -
Tr m - en , cr oo .0
kr, r- .4- -. -.
-- en
Depreciation
Rate of

..,, o
-..
o
el
0
-.
0
cv
0
-,
csi
3202

co - -
13

O Tr o en hi cr. oo
0 - Tr s s cr- Tr N o o
O s s Tr„ tr,„ sz:::. o '''.. o:„
O o r-= Tr - o 6 en er •-•
c•'1 CV 'd- oo s kr, c-a kr, oo tr)
December
Balance at

en ri 0 so o ,0 'cr. oo NO
N O O 00 o o - .__1- t.r.^ Lel
"
.--. N CP, f•-• r.- tr) CP, r.. t•-•
en -4- en •-• R
cr`.
rsi -. h -. co h
Transfer during

, 1 i
Disposal/

the year
COS T/REVALUED

672,336,750 :
440,233,700_
Additions during

.0 h CO Cr,
CV I-, f"-- .--,
I c•I 00 `, C, ' 1 CP,
1-: en' vi
the year

0 -
.... ,--. en .0

6 en- .0
-. .-- --.
N h

0 Tr si en en -- en en 00 00
Balance as on 01

0 -. h crs 0. cr .7 vl 0 L/1
January 2023

s kr1„ kr, 00. `C... 0 ‘0 "":. en ,

S
6
en
6
c.-4
.--.
en
se
so
1- --
en
..c
.r,
e
e.-4
r--."
oo
.-,
te")
cr
,-.
en c-.1 kfl .1- '0 '0 '7 1- --.. C. t--,"
CV'
--
d Cr.:‘
s
.ri
,0
e.-;
kr)
e
kr,
-cr, - ki)
NO
r.,4
cv _
en s (--4 en s
c, i -, c4 -. s s

a
.40
31 December 2022

'.. --. .. .„
Particulars

;-.< L.
fa.
.5
.9,
§
00 V Cr
G.L1 e 6 ,....0 oJ
gd
= j' co gn ad
' g-3 Q ,..4.
.
c.) 3 . .9., _s4
=
'S
E0 E ,:z0 ..=a.) . -of)
0
0
A
,-.
3 co o u, > ce CO en
 Annexure-C

I RCM= 10 1, 101W Y.Z. 01 LIICJV itualmaan atammcmai

N
el
en

..:.
en
31.12.2022

c,.
Name of the Banks Currency Amount in Conversion Amount in Amount in I Amount in
Foreign rate per unit

(I) Z
per unit
Foreign rateConversionF.C. BDT.

.7 ci
Name Currency F.C. BDT. Currency

h
N

-.
SCB, MUM BA! 30,087,2971 406,153.34 103.30 1 41,954,421.56

i0

N
00 N
, .

00 00
2,456,900.55

en en
N3
SUMMIT Bank, KARACHI 2,616,330 23,784.82 103.30

0
•c c;
27,805,536 81,988.60 103.30 8,469,176.41

e.i en,
SONALI Bank, KOLICATA 252,777.60 I

UUUUUU
0
. 0
53,003,921 239,730.22 103.30 24,763,412.54

(11 CIMAAA
IMASHREQ Bank, MUMBAI 481,853.83

h
N

0
vI
eel
.-,

%/D
VD

...
,.-.
nr

QV
eel

en
lvl
I1NEPAL BANGLADESH Bank 284,883.3fl 103.30 28,562,690.66 I

N
el
...
00

ei.
00

eV
"-'
3,384,468.36 I

VI

A A A A A A
C
.4.1
Bank OF BHUTAN, PHUENTSHOLING 110.00 I 32,764.44 103.30
vl

0Qt--00
e-
V>
Cs1
en•

VI

In
VD

eh
sr,
.M. CD
VI
UNITED Bank OF INDIA ACUD 414,146.06 1 110.00 I 257,227.16 103.30

I
0

0
t
el

...
0
en

...

%0.
00
en

...
cri

••-•
%el

et
en

CD
%0 It'.

IF.

sr
ej.
0 .
ITiB Bank, MUMBAI ACUD 149,888,061.32 I

0, h
ON

'F.4
I-- 00
36,027,335.774

00 --.
wl

' r-
MEEZAN Bank LIMITED 348,774.27 103.30 I
0
1-.
I--

.e'l

r... co 0, o
394.50 103.30 I

.-4
I1%3 Bank,ICARACHLPAKISTAN ACUD 394.50_1

0.c;
0

0
ACUD 103.30 2,113,783.04 I
00%,,000
IAXIS Bank LIMITED
0

en 0
4
N

0
t-- •et t-- 0
t

0
•-• N
a,

U
kr;

'4. enqi. se,

0
VI

en. en. ,-, N .

...
eV ,--.
.0 r-

,--. 0 , .... •eh

..r)

ch el kri VD
Nr. el.

,-.
ei 7...
IHDFC Bank LTD., MUMBAI 103.30

CCNN
'

N
00 en Q
.-. t-- op.
IICIC Bank, Mumbai, India • ACUD
.-00

en 0
..
-.

Cr: m

C'.§ r:3 6
vl

vi

,..
.4*
VD

ch. co.
,-.
cr,

0, Ch

,-,
VI .-.
N --.
CD

00
104,861,904.10 I

o,,. en Ch
103.30

%0 .4-1
IMASHREO Bank ,NEW YORK, (OBU) I USD
N
N
...

1--
Ch
52,

VI

Ch.
en

IF.

cn
A
41
ko...
II 5,760,478.95 103.30

0 .
IMASHREO Bank PSC, NEW YORK, USA 233,253.97
§

n
N

r-
ci
0.

00.
VD

oo
....

00
00

%0

t--
....
IS7CB.NY, USA USD 10,708,807.98 I
ch.
103.30 827,409,963.724
el
0
_
%0
,-•n-•
oo

•th
...,

.-.
en
C4'

n•

LlaREA EXCH. Bank,KOREA 22,22117 2,444,417 II 13,061.06

0

0
el

.-.
en

•V
t--
Ch

A A
rii-ABIB AMERICAN Bank 54,744,2181 526,776.76 I 54,414,458.9_1
0

0
n
en

.-.
000
en

hi.
%.0

v)
eel

15,241,892.77
kg),

ICOMMERZ Bank AG, FRANKFURT CISI1 51,184 147,554.07

N
hi
ei

v.,

%," eel sirD t-- 00 Ch 0

•er
•••••
eh
%el

%/I

et
%0

00

eh

42,584,441.33 I
kr;

Zhejiang Commercial Bank, China USD 413,349.60 103.30

N

6 6 6 6 o 6 6 6 6
hl

N.
et
00

.-.
en

0,
NI- C.4
VD
.--.

en
\C;

COMMERZ Bank AG, CHF CHF 1,831.87 111.35 2,909,783.70

en N
I--
a,

et
Cs
ON

,-.
'el

en

cr,
450,801.00 571,416.00 28.12 16,069,246.47

<0
ABU DHABI ISLAMI BANK, UAE
0
0
r,
eq
,_,

...
en

en

IF.

kel
-...

100,654,380.36
mi

.-. ... .-4 .-1 .-• .... .... .-4 .-1 el chi eV el
6,795,874.74

--. N en
Zhejiang Commercial Bank, China 3,437,066.14
/
ei
N

N
N
eh.
,0
--.

..n

MASHREQ Bank, PSC MUMBAI ACU 60,862 ; 497.92

r EURO 497.92
S

N
'.0

Ch
0%
00

312,840,691.14]
es1

ISCB, FRANKFURT 138,994.83] L 2,852,283.09

00
S

COMMERZ Bank AG, FRANKFURT 39,632.36 II 122.23 I 4,844,3431 32,601.13 3,575,718.02 I

N

0
sr
V 0.8 '.0

SCB, LONDON, UK 111,777.68 140.86 15,744,445 66,740.43 8,292,898.87

N
Q

rtZ

0.
"1

00

SCB, TOKYO Adf 10,294,511.00 0.78

0

Vo n
C
ri

.-. If .
ri et
C" .--.

eh .--.

Bank AL JAZIRA
'IVAR1 1,752.50 1----- 29.33
N
00

%., VI ,C, rs• 00 ON 0

cr;
en

54,496,012 I
>.
24,318,304 IF 1,984,176.83

N hi N N es.1 hi en
iklYAD BANK 829,121.65

i
Total 1,997,889,368 2,520,897,414 I
 Annexure-D
SOCIAL ISLAMI BANK PLC
Details information of Investment more than 10% of Bank's total capital

Taka in Crore
[-STno. Name of client Outstanding as on 31 December 2023
Funded Non-funded Total

1 1. PowerPac Mutiara Keraniganj Power Plant Limited & its sister

concerns, 2. PowerPac Mutiara Jamalpur Power Plant Limited, 3. 612.54 61.97 674.51
PowerPac Holdings Ltd. 4. PowerPac Mutiara Khulna Power Plant Ltd.
5. Powerpac

2 i. Nabil Naba Foods Limited and its sister concerns

ii. Nabil Feed Mills Limited and 453.78 453.78
iii. MIS. Shimul Enterprise
3
i. Bashundhara Industrial Complex Ltd. ii. East
West Media Group
iii. Bashundhara Infrastructure Ltd. 592.71 197.85 790.56
iv. East West property Development (Pvt.) Ltd. v.
Bashundhara Multi Paper Ind. Ltd. vi.
Bashundhara Paper Mills Ltd.

4 Bashundhara Multi Food Products Ltd & Bashundhara Food & Beverage 486.85 300.06 786.91
Industries Ltd.
5 Infinia Spinning Mills Ltd. 373.58 277.16 650.74
6
i.Westem Dresses Ltd. & its sister concerns-
ii. MNC Apparels Ltd.
iii.Kimia Washing Industries Limited 634.68 17.17 651.85
iv. NASSA BASIC WASH LTD. v. Nazrul
Islam NazumderLTD.

7 i. Orion Infrastructure Ltd. & its sister concerns

ii. Orion Agro Products Ltd.
iii. Orion Power Meghnaghat Ltd.
iv. Belhasa Accom JV. Ltd. 642.06 0.08 642.14
v. Panbo Bangla Mushroom Limited
vi. Orion Power Unit-2 Dhaka Limited
vii. Orion Pharma Ltd.
8 i.Amber Denim Mills Limited & its sister concerns-
ii. Amber Denim LTd,
iii. Amber Rotor Mills Ltd. 322.84 227.31 550.15
iv.Amber Rotor Spinning Mills Ltd.
v. Amber Jeans & Washing Ltd.
9 SQ Birichina Limited 291.72 76.95 368.67
10 Afser Resources Management andConsultancy Servoces Ltd. 425.67 - 425.67
II i. Bashundhara Import Export Limited,
ii. Bashundhara Steel & Engineering Limited iii. 352.79 0.99 353.78
Bashundhara City Development Limited
12 Cristaline Refined Sugar Limited - _
13 i. Base Paper Ltd. and it's sister concerns-
ii.Base Fashion Limited 354.18 40.81 394.99
iii.Zayantex Limited iv.Base Technologies Limited v.Base Paper Ltd.
vi.Akash CNG Filling Limited
14 i.M/S. Islam Brothers & Co. & its sister concerns-
ii.Anwara Mann= Textile Mills Ltd.
iii.Juvenile Construction Ltd.
581 .82 581.82
iv. RS & T International
v. Aman Feed Ltd.
vi. Aman Shipyard Ltd.
15 i. M/S. Sonali Traders ii.
S.Alam Vegetable Oil Limited iii) Shallidul 536.40 709.25 1,245.65
Alam
16 Dong Bang Dyeing Ltd. 437. 15 6505 502.20

70
17 i.M/S. Rabiul Islam & its sister concerns-
ii.M/s. Rhythm Trading
iii.A R Cement Mills Ltd. 522 41 () 00 522.43
iv.Ehsan Cement Industries Ltd.
V. RMR Poultry & Hatchery Ltd.
vi.A.R. Specialized Auto Rice Mills Ltd.
18
i.M/S. Millennium Enterprise, & its sister concerns-
ii.Panama Composite Textile Mills Ltd.
iii.O.N Spinning Mills Ltd. iv. M/S. 293.66 538.35 832.01
Mosharaf & Brothers and its sister Concern, M.N Enterprise, Orange
Textiles Industries & M.N Filement & Twisting Industries.

19
i. S. Alam Brothers Ltd. & it's sister concerns
ii. S. Alam Cold Rolled Steels Limited.
iii. S. Alam Steels Limited 352.51 588.87 941.38
iv. S. Alam Refined Sugar Industries Limited
v. S. Alam Bag Manufacturing Mills Limited vi. S
Alam Cement Limited
20 M/S Mars Textile Ltd. 391.00 78.03 469.03
21 Dong Bang Textile Ltd. 348.34 44.50 392.84
22 Ronghdhanu Builders (Pvt) Ltd., Mehedi Mart 437.20 - 437.20
23 i. Deshbandhu Sugar Mills Ltd.
ii. Deshbandhu Food & Beverage Ltd.
iii. Deshbandhu Cement Mills Limited. 381.36 396.77 778.13
iv. Deshbandhu Consumer & Agro Product Limited

24 S.Alam Super Eadible Oil Ltd. 245.02 768.70 1,013.72

25 i. Dada Engineering Ltd. & its sister concerns-

ii. Dada Accessories Ltd.
iii. Dada Zipper Ltd.
iv. Dada Bag Industries Ltd.& v. V. Zumar bag industries Limited
vi. Dada Bobbins Ltd. vii. Daily Jugantar Ltd.
viii. Jamuna Spning Mills Ltd. & ix. Jamuna Spining Mills Ltd. Unit-2 x. 69.97 130.47 200.44
Shameem Spining Mills Ltd. xi.Shameem Composite Mills Ltd. xii.
Jamuna Electronics and Automobiles Ltd. xiii.
Jamina Denims Ltd. xiv. Jamuna Denims Weaving Ltd. xv.
Jamuna Knitting & Dyeing Ltd. xvi. Hoorain HTF Limited. xvii.
Jamuna Hi-Tech Spning Mills Ltd.
26 i. Infinia Composite Textiles Limited
ii. Infinia Chemicals Limited 344.67 54.61 399.28
iii. Infinia Knitting & Dyeing Limited & iv. Global city HVAC
27 Globe Edible Oil Ltd. - -
28 i. Nasrin Agriculture Industries Limited & its sister concerns-
ii. M/s. Al-Habib Enterprise and its sister concern M/s. H R Feed 636.87 636.87
iii. M/s. Nutrila Feed
29 TecTonics 405.45 405.45
30 i. Opal Trading House
ii. Ibrahim Consortium Ltd. 353.96 353.96
iii. Ibrahim Composite Textile Mills Ltd.
31 i. Rahimafrooz Batteries Limited. & its sister Concerns-
ii. Rahimafrooz Gloabatt Limited. 1.76 358.87
357.11
iii. Rahinafrooz Bangladesh Ltd.
iv. Rahinafrooz CIC Agroo Ltd.
Grand Total 12,238.32 4,576.71 16,815.03

71
 Annexure-E
Social Islami Bank PLC
History of Paid-Up Capital

--
k

...
72.
-.' •
118,380,000 {

a
00
...,
Initial Capital 118,380 11

,-—
1

..
I

•
el' er

FL §

N
oo ,3 3

7,620,000

oo ve

0
6.43% Bonus issue for the year 1996 11 II

§
I

N
1.. ••• .-,

& zi1. g 8,'

No Dividend — 11
1. 1. IN 1. 4 0

§
low ...t Imo l i N
9=039

4:- 38

-8
c:.' 9:"

,e) 2.- I-. oo 0.

Right Share Issued

NN
888
II

§
lin

OP In

) A
c5

cl• of=i

...
0

1
- -
000
000
N In .--,

t•-• VI .-.
v t .6 c s
260,000

O. § §..

<6
Initial Public Offer II
o

I
YIP

N
000
20% Bonus Issue (Declared in the year 2004)
0

SD 0
o

NNN

o
92 7

N
000
25% Bonus Issue (Declared in the year 2004) II

N
I§
, 90

--, cv en
i§E33333E3E3

50% Bonus Issue (Declared in the year 2004) 1

,r ;
est
en
§

1-- 2004 11 Bonus Issue (For the years 2001,2002, 2003) Ii 325,000 11 585,000 I
i

1 585,000
2005 11 No dividend II §
o

o
No dividend lei
93!._,

II
0
N I NI NI IN NI in In an 1.

11 000`55517ES
SO 00 00 011 •••••
s 14.4s4 33..s:2

In
33

In
4; ei. oz• oz. e0 <0 a isi If) te) or
1-1

00 Os

_
1
...,
.-.-

VI
te;
In •-:,

in
.e.

••
a
..,
1 2007 11
loot
,_,

1,309,879,300

N
,..1.

13,098,793 .1
00

oe
117% Bonus Issue for the year 2007
S
N

en 0
stR000N
0.

Tr.
oo
en
88

0-
0, ,-,

'01'
oo

1,440,867,200 I
.--.

yl . el, ocl
co- rz

er t--
el ol,

110% Bonus Issue for the year 2008

N
0,
N
11T6SrL I6`9Z 1 01:W858'05r I
2,691,725,900 I
11:1 Right Share
0

r
0
N

00 0
00 0
N

N
'"'

0
rs
In
00

00

2,987,815,750
c,..

N
00.

o6

0,
1 1% Bonus Issue for the year 2009
0

0
0

0
4.0
,:r

...
w, 8

VI

'V

3,406,109,950 1
en
01.

114% Bonus Issue for the year 2010

0
-
0

CA
N
N r,
w)
ci, ...,

6,393,925,700

yry. op. ..zr., u.1

00

••••• 00
.....
[1:1 Right Share 10 IL 639,392,570
,..

Ii
1
"gt 01 0

0
In
o
oo a, -. oo
c0 ei oo. .o.
,46 oo t-- t--

0
0, •-.. oo en

.-.
,-,
0,

`0'

7,031,415,640 1

Tr
01
e4

00

en

CA
10% Bonus Issue for the year 2012

o
7,031,415,640 I
00
.1

112% Cash dividend for the year 2013

000
o
i

7,031,415,640_1

CI r‘t
118% Cash dividend for the year 2014
M
-.
In
o

In

7,382,986,420
3, 1.1,, (-I

c l
11, -
.... ...• el,

00

an
.....
ViR

C^4
,,-, •er v., ,0
15% Bonus Issue for the year 2015
'1' er 0 , 0

0
,..... „,,. , , t...... ,

t
i
•

N
7,382,986,420 1
e4 e4 00 00
,..,

r- t.••• t-- r- r-- ee) en

.=
33
... ... 06 oc;
ei

.1
—

1-- 2017 1
/
-.- -

0
N

I
8,121,285,060

N
812,128,506 738,298,640

en
oga‘

Pi
....,
,....

Z;)
2
1 2!
i 1
81,212,8501 893,341,356 I 812,128,500 8,933,413,560
10% bonus issue for the year 2018 r
k

8 8 88 00000010000
i
0

ON
....)
ei

---

CM N
5% Bonus &5% cash Issue for the year 2019 44,667067
, . 938,008,423 II 446,670,670

,0.010000
9,849,088,440

N
5% Bonus & 5% cash Issue for the year 2020 46,900,421 10 984,908,844 11 469,004,210
10,341,542,860 1

N
, 49,245,442 10 1,034,154,286

co ch e• •-• -•
5% Bonus & 5% cash Issue for the year 2021 492,454,420 1
••••

In
N .2
 Annexure-F
Social Islami Bank PLC

Tax Provision as per Advance Tax/TDS Tax as per assessment Present Status
Accounting Year Assessment Year /Settlement fee/Appeal fee Order
accounts

..

...
Pending at High Court Division of Supreme Court

(0

vp
oo
,
2005-2006

ON ..
00 ..

rl

N
en et

el
‘ 1... ""l

el
2a
,_, csi

•cr
ON (4

oo .i.

0%
•-:

NNN.N
*
N

6
gl.0

...
]]
85,135,9211

trt eN I's.
2007-2008 85,135,927 1

0....
"

..... '.000 §

gen N

N
oo

;1
CA

•-•
mi.
Pending at High Court Division of Supreme Court

en

.-.
.4...

CA oe

r--
8
er N

0
0

N
4

Ces kr)
Pending at High Court Division of Supreme Court

c::; m

,4
g.
2008 —1 150,300,000 I

‘.0 r- C

e-. N
0 . el

cr. o

N
N
00 — IT

.
I 2009 I 278,914,968 Pending at High Court Division of Supreme Court

en eV 0

.ri 00 N

0
°I

.--. N

0
N
.
Pending at High Court Division of Supreme Court

mr

et
CA

...
. .
e e,

c....,
G
.i.
0 a :•,..),
- - -- --

wl ce oo o

t-- en en 0
N

.1
l' .. 0 . 41. 1--. rn
08
-e 00 r•-•

e l
00 , . , .. CT 00

milo oo. oo

.4. 0 Tr
Ce, •-•

swe
'r l
el 00
,-- v e"
tn
Pending at High Court Division of Supreme Court

ON
(--
2012-2013

•-• ,-.. 0
0

000000
I

•-• N
r--

kr) oo el
...
1,455,548,339_1 Pending at High Court Division of Supreme Court

"1
00

V:, .--,
1,344,746,694

— f.„. ..„,.
2013-2014 --1

-.

rI

0
.
CA
00

..w
,,,,i-
802,951,284 I 876,386,844 Pending at High Court Division of Supreme Court

0
,
0

0
v1 C
—

...
1,397,825,207 Pending at High Court Division of Supreme Court

‘.0

en et
vs

9 :,
e

ezi N N
Pending at High Court Division of Supreme Court

'0...
1,403,060,382 1,021,914,182 I

kel
00
(4 0

,....i (..., N N
N
.,,
Tr
Pending at High Court Division of Supreme Court

... ,—. ..... ..

.,

I"- 00
1,887,664,569

.1- .r) ,(6 r t ,

000
I 2016

en r-- N

s
0

en N

0
C

... .-,
el (NI

‘0
Pending at High Court Division of Supreme Court

r-
C4
'.0

..,-.

m
et efl.

w ..

•-.
2018-2019

..,
,-. •-• •-: N
.--.
Pending at High Court Division of Supreme Court

00
I 2018 I 2019-2020 2,227,743,967

*
0

N
V.1 VD 00 el

—. ...
00 0% —
00 cv

kel et
.r) 00

...
Pending at High Court Division of Supreme Court

,D vo
(-.. et 721 mt

0
Cs.1
Os 0
N
el

et ON. 0, wt. en. el

1-e.

r- oo sap ,I) c•I .-.

Completed

00 en er en C" Cr,
e... eSi e• en

.--.

—
Cel Ch. et 00. WI WI
1,600,728,203

o . '1.
L- 2020-20-21 —

vl

•-. esi N
Completed

^.

r ."

Cr, 00 I--
rn

‘0
er
00

v:).
en
en
en

. n —
Ci
1,234,333,583

(...; ,, ,K
en

rs, m 0
2021-2022

N
Return Submitted

NNN
•,-.
2022-2023 1,460,004,839 -

NN
e
•

ei -.

el .n
er 00
.0 00

.rl eV
as (11
1,395,707,758

as eD .-. es] ce,

Cs1
er. 00'
2023-2024
 Annexure- G
Social Islami Bank PLC
Calculation of Deferred Tax Liability
For the year ended 31.12.2023

..--.
D. Tax Liability /
Assets Description Tax Base Acounting Base Difference Tax Rate (Assets)
Building 436,424,717 900,374,423 463,949,706 37.50% 173,981,140
Furniture & Fixture 909,517,278 1,135,008,015 225,490,736 37.50% 84,559,026
Office Equipment 1,147,288,248 869,821,805 (277,466,443) 37.50% (104,049,916)
Software Local 3,403,707 73,663,006 70,259,300 37.50% 26,347,237
Software Foreign 134,652,573 138,414,959 3,762,386 37.50% 1,410,895
Books 577,558 551,916 (25,642) 37.50% (9,616)
Motor Vehicles 11,100,774 2,857,577 (8,243,197) 37.50% (3,091,199)
Sub-total 2,642,964,855 3,120,691,701 477,726,846 179,147,5

Land - 10,218,377 4.00% 408,735

Building - 832,441,937 37.50% 312,165,726
Sub-total „

iabilit ,
Right use of asset 367,456,519
Less: lease liability 339,401,866
Sub-total 28,054,653 37.50% 10,520,495

501,833,788
Total deferred tax liability

Gratuity Provision - (68,806,530) 37.50% (25,802,449)

Sub-total (68,806,530) 25,802,449

Grand Total of deferred Tax Liability as on 31.12.2023 476,031,340

Deferred tax (asset)/liability as on 01.01.2023 471,979,987

Deferred tax (asset)/liability as on 31.12.2023 476,031,340
Deferred Tax Expense/(Income) during this year 4,051,353

74
 Annexure-H
SOCIAL ISLAMI BANK PLC
OFF-SHORE BANKING UNIT (OBU)
BALANCE SHEET
AS AT 31 DECEMBER 2023

1 .2,1f1§1 31.12.2023 31.12.2022

USD Taka USD Taka
PROPERTY AND ASSETS

Cash

Cash in hand (Including Foreign Currencies)

Balance with Bangladesh Bank & its Agent Banks
(Including Foreign Currencies)

Balance with other Banks and Financial Institutions 3

In Bangladesh
7,328,956 806,185,115 1,049,358 108,395,520
Outside Bangladesh
7,328,956 806,185,115 1,049,358 108,395,520

Placement with Banks & other Financial Institutions

Investments in Shares & Securities

Government

_
Others

Investments
4 182,039,216 20,024,313,791 140,580,474 14,521,541,191
General Investment etc.
_
Bills Purchased and Discounted
182,039,216 20,024,313,791 140,580,474 14,521,541,191

Fixed Assets including Premises, Furnitures and 88 9,666 117 12,082

5
Fixtures
6 2,913,080 300,912,435
Other Assets
Non Banking Assets
189,368,260 20,830,508,571 144,543,029 14,930,861,227
Total Assets

LIABILITIES AND CAPITAL

Liabilities

Borrowing from Banks & other Financial Institution' 7 182,831,737 20,111,491,082 83,872,088 8,663,735,120

Deposits and Other Accounts 8 133,060 14,636,600 57,723,535 5,962,667,975

Mudaraba Savings Deposits

Mudaraba Term Deposits 8.1 - - 50,000,000 5,164,850,000
_
Other Mudaraba Deposits
Al-Wadeeah Current & Other Deposit Accounts 8.2 133,060 14,636,600 7,723,535 797,817,975
_
Bills Payable

Other Liabilities 6,403,463 704,380,889 2,947,405 304,458,133

Deffered Tax Liabilities/ (Assets)

Total Liabilities 189,368,260 20,830,508,571 144,543,029 14,930,861,227

Capital/Shareholders' Equity
Paid-up Capital
Statutory Reserve
Foreign currency translation gain/(Loss)
Retained Earnings
Total Shareholders' Equity
Total Liabilities & Shareholders' Equity 189,368,260 20,830,508,571 144,543,029 14,930,861,227

cn

c' •o
75 41frio
 31.12.2023 31.12.2022
USD Taka USD Taka
Off-Balance Sheet Items
CONTINGENT LIABILITIES

Acceptances and Endorsements

Irrevocable Letters of Credit (including Back to Back
Bills)
Letters of Guarantee
Bills for Collection
Other Contingent Liabilities
Total

OTHER COMMITMENTS

Documentary credits and short term trade related

transactions
Forward assets purchased and forward deposits placed
Undrawn note issuance and revolving underwriting
Undrawn formal standby facilities, credit lines and
other commitments
Total
Total Off Balance Sheet Items including
Contingent Liabilities

76
 Annexure-H
SOCIAL ISLAMI BANK PLC
OFF-SHORE BANKING UNIT (OBU)
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023

31.12.2023 31.12.2022
USD Taka USD Taka

Investment Income 14,473,011 1,592,031,241 5,657,748 584,428,421

Less: Profit paid on Deposits (8,071,087) (887,819,568) (2,718,215) (280,783,429)
Net Investment Income 6,401,924 704,211,673 2,939,533 303,644,992

Commission, Exchange and Brokerage - -

Other Operating Income 1,450 159,551 7,755 801,059

Total Operating Income 6,403,375 704,371,224 2,947,288 304,446,050

Salary & allowances 52,870 5,815,676 45,020 4,650,430

Rent & Utilities
22 2,416 29 3,020
Depreciation on fixed assets
Others - -
Total Operating Expenses 52,892 5,818,092 45,049 4,653,450

Profit/(Loss) before Provision

Specific provisions for Investment
General Provisions for Investment
General Provisions for off-Balance Sheet exposure
Total Provision

Total Profit/(Loss) before Tax 6,350,483 698,553,131 2,902,239 299,792,600

Provision for Income Tax

Net Profit/(Loss) after Tax 6,350,483 698,553,131 2,902,239 299,792,600

77
 Annexure-H
SOCIAL ISLAM! BANK PLC
OFF-SHORE BANKING UNIT (OBU)
CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023

31.12.2023 31.12.2022
USD Taka Taka
Cash Flow from operating activities
Investment Income receipt 14,473,011 1,592,031,241 584,428,421
Profit paid on deposits (8,071,087) (887,819,568) (280,783,429)
Dividend receipts
Fees & commission receipt
Cash payments to employees (52,870) (5,815,676) (4,650,430)
Cash payments to suppliers
Income tax paid
Receipts from other operating activities 1,450 159,551 801,059
Payments for other operating activities
Operating profit before changes in operating assets and liabilities 6,350,505 698,555,548 299,795,621
Changes in operating assets and liabilities
Statutory deposits
Net trading securities
Investments to other banks
Investment to customers (41,458,743) (5,502,772,600) (9,450,487,101)
Other assets 2,913,080 300,912,435 (257,217,736)
Borrowing from Banks & other Financial Institutions 98,959,649 11,447,755,963 8,112,012,514
Deposits received from customers (57,590,475) (5,948,031,375) 1,340,900,860
Other liabilities on account of customers
Trading liabilities
Other liabilities (2,894,426) (298,632,791) (113,773,155)
Sub Total (70,914) (768,369) (368,564,618)
A. Net Cash flow from operating activities 6,279,591 697,787,179 (68,768,997)
Cash flows from investing activities
Proceeds from sale of securities
Payment for purchases of securities
Proceeds from sale of fixed assets
Purchases of property, plant & equipment's 22 2,416 3,020
Purchase/Sale of subsidiaries
B. Net Cash flows from investing activities 22 2,416 3,020
Cash flows from financing activities
Receipts from issue of debt instruments
Payments for redemption of debt instruments
Receipts from issue of right shares/ordinary share
Dividend paid in cash
C. Net Cash flow from financing activities
D. Net increase/(decrease) in cash & cash equivalents (A+B+C) 6,279,613 697,789,595 (68,765,977)

E. Cash and cash equivalents at the beginning of the year 1,049,358 108,395,520 177,161,497
F. Cash and cash equivalents at the end of the year (D+E) 7,328,956 806,185,115 108,395,520

78
 Annexure-H
Social Islami Bank PLC
Off-shore Banking Unit (OBU)
Notes to the Financial Statements
For the year ended 31 December 2023

1 Status of the unit

The Bank obtained the Off-shore Banking Unit ("the Unit") permission vide letter No. BRPD(P-3)744(119)/2010-4652, dated:
11 November, 2010. The Bank commenced operation of this unit from 02 May 2012. The Off-shore Banking Unit is governed
under the rules and guidelines of the Bangladesh Bank. Its office is located at SIBL Head Office, City Center 90/1, Motijheel
Commercial Area, Dhaka 1000.

1.1 Principal activities

The principal activities of the unit are to provide all kinds of commercial banking services to its customers through its off-shore
Banking Units in Bangladesh.

2 Significant accounting policies and basis of preparation of fi nancial statements

2.1 Basis of accounting

The Off-shore Banking Unit maintains its accoun ng records in USD from which accounts are prepared according to the Bank
Companies Act, 1991, International Accounting Standards (IAS), International Financial Reporting Standard (IFRS) and other
applicable directives issued by The Bangladesh Bank, in particular, Banking Regulations and Policy Department (BRPD)
Circular No. 15 (09 November 2009).

2.2 Use of estimates and judgments

The preparation of financial statements 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.

2.3 Foreign currency transaction

a) Foreign currencies translation

Foreign currency transactions are converted into equivalent Taka using the ruling exchange rates on the dates of respective
transactions as per IAS-21" The Effects of Changes in Foreign Exchange Rates". Foreign currency balances held in US Dollar
are converted into Taka at weighted average rate of inter-bank market as determined by Bangladesh Bank on the closing date of
every month. Balances held in foreign currencies other than US Dollar are converted into equivalent US Dollar at buying rates
of New York closing of the previous day and converted into Taka equivalent.

b) Commitments

Commitments for outstanding forward foreign exchange contracts disclosed in these financial statements are translated at
contracted rates. Contingent liabilities/commitments for letter of credit and letter of guarantee denominated in foreign
currencies are expressed in Taka terms at the rates of exchange ruling on the balance date.

c) Translation gains and losses

The resulting exchange transaction gains and losses are included in the profit and loss account, except those arising on the
translation of net investment in foreign subsidiary.

Cash flow statement

Cash flow statement has been prepared in accordance with the International Accounting Standard-7 "Cash Flow Statement"
under direct method as recommended in the BRPD Circular No. 14, dated June 25, 2003 issued by the 'ng Regulation &
Policy Department of Bangladesh Bank.

79
 2.4 Reporting period
These financial statements cover from January 01 to December 31, 2023.

2.5 A provision is recognised in the balance sheet when the unit has a legal or constructive obligation as a result of a past event and
it is probable that an outflow of economic benefit will be required to settle the obligations, in accordance with the IAS 37
"Provisions, Contingent Liabilities and Contingent Assets".

2.6 Profit income

In terms of the provisions of the IFRS-15 "Revenue from contract with customer", the profit income is recognized on accrual
basis.

Fees and commission income

Commission
Fees and commission income arises on services provided by the units are recognized on a cash receipt basis.

charged to customers on letters of credit and letters of guarantee are credited to income at the time of effecting the transactions.

2.7 Profit paid and other expenses

recognized on
In terms of the provisions of the IAS - 1 "Presentation of Financial Statements" interest and other expenses are
accrual basis.

2.8 Allocation of common expenses

allocated as
Operating expenses in the nature of salary, rent, rates and taxes, management expenses, printing stationery, etc. are

3 Balance with other Banks and Financial Institutions

which is held with

Balance with other Banks and Financial Institutions consists nostro account balance of OBU unit of SIBL
Mashreq Bnak, New York.

4 General Investments

a) General investments of Off-shore Banking Units are stated in the balance sheet on net basis.

charged on bad and

b) Profit is calculated on a daily product basis but charged and accounted for on accrual basis. Profit is not
Records of such interest amounts are kept in separate memorandum
loss investments as per guidelines of the Bangladesh Bank.
accounts.

5 Fixed Assets

Fixed assets includes Furnitures and office equipments used by the employees of OBU unit.

6 Other Assets

relative
Other assets include profit receivable from investment clients which are accounted for on accrual basis as per
accounting standards.

7 Borrowing from Banks & other Financial Institutions

Borrowing from Banks & other Financial Institutions includes amount received from SIBL as part of fund which will be
returned/adjusted in due course, balance of which is eliminated in the consolidated balance sheet of SIBL to avoid improper
double reflection of fund.

8 Deposits and Other Accounts

8.1 Mudaraba Term Deposits

No Mudaraba Term Deposits procured from local and foreign banks during the year 2023.

8.2 Al-Wadeeah Current & Other Deposit Accounts

Wit KI-1"
Al-Wadeeah Current & Other Deposit Accounts includes profit payable account and sundry deposits.

r",
80
9 General

a) These financial statements are presented in BDT, which is the Bank's functional currency. Figures appearing in these
financial statements have been rounded off to the nearest BDT.

b) Assets and liabilities & income and expenses have been converted into Taka currency @ US $1 = Talca 110.00 closing rate
as at 31st December 2023.

c) Fixed assets of this unit are appearing in the books of the main operation of the bank and depreciation is also charged to
Profit & loss Accounts of the main operation of the bank.

81
 Annexure-I

SOCIAL ISLAMI BANK PLC

HIGHLIGHTS OF PERFORMANCE (Only Bank-Solo basis)
(Amount in Taka)

SL Particulars 31.12.2023 31.12.2022

no.
1 Paid up Capital 10,858,620,000 10,341,542,860

2 Total Capital ( Core + Supplementary) 38,744,629,113 33,986,120,360

3 Capital Surplus/(Deficit) 8,152,333,398 5,400,736,733

4 Capital to Risk-weighted Asset Ratio (CRAR) 12.66% 11.89%

5 Total Assets 476,051,862,172 439,968,684,936

6 Total Deposit 357,388,847,131 340,950,314,928

7 General Investment 360,816,978,271 342,944,157,503

8 Total Contingent Liabilities and Commitments 76,857,695,115 77,759,960,851

9 Investment-Deposit (ID) Ratio ( % ) 91.14% 93.70%

10 Percentage of classified investment against total investments 4.79% 4.80%

11 Profit before Tax and Provision 4,794,497,507 4,735,023,246

12 Profit after Tax and Provision 2,564,130,096 2,429,782,845

13 Amount of classified investment 17,288,596,566 16,476,564,521

14 Provisions kept against classified investment 7,926,217,063 7,638,552,062

15 Provisions surplus - -

16 Cost of Deposits 4.82% 4.72%

17 Profit Earning Assets 383,334,870,515 379,181,360,493

18 Non-Profit Earning Assets 73,584,222,064 60,787,324,443

19 Return on Investment in Securities 5.85% 5.95%

20 Return (after tax) on average Assets (ROA) 0.56% 0.57%

21 Return (after tax) on equity (ROE) 11.89% 12.15%

22 Income from Investment in Securities 1,481,632,839 1,407,929,007

23 Earning Per Share (EPS) (Prior year restated) 1.98 1.88

24 Consolidated Earning Per Share (CEPS) (Prior year restated) 1.96 1.90

25 Net Income Per Share 1.98 1.88

26 Price Earning Ratio (Times) 5.90 6.25

82
 TO WHOME IT MAY CONCERN
April 25, 2024

This is to certify that based on the Audited Financial Statements of the Bank along with the books of Accounts, related
related and relevant record and documents maintained by it, the paid up capital of the Bank as on 31.12.2023 was
Tk. 10,858,620,000/- divided into 108,5862,000 ordinary shares of Tk. 10 each. The details of the paid up capital are
given bellow:
Face Value
Cumulative Value of issued Capital Cumulative value
Years Declaration No. of Share per Share
no. of Shares year (Tk.) of Capital (Tk.)
(Th.)
1995 Initial Capital 118,380 1,000 118,380 118,380,000 118,380,000
1996 No Dividend 118,380 118,380,000
1997 6.43% Bonus issue for the year 1996 7,620 1,000 126,000 7,620,000 126,000,000
1998 No Dividend 126,000 126,000,000
1999 Rights Share Issued 74,000 1,000 200,000 74,000,000 200,000,000
Placement 50,000 1,000 250,000 50,000,000 250,000,000
2000
Initial Public Offer 10,000 1,000 260,000 10,000,000 260,000,000
20% Bonus Issue (Declared in the year
2001 260,000 260,000,000
2004)
25% Bonus Issue (Declared in the year
2002 260,000 260,000,000
2004)
50% Bonus Issue (Declared in the year
2003 260,000 260,000,000
2004)
Bonus Issue (For the years 2001, 2002,
2004 325,000 1,000 585,000 325,000,000 585,000,000
2003)
2005 No Dividend 585,000 585,000,000
2006 No Dividend 585,000 585,000,000
2007 1:1 Right Share 5,345,550 100 11,195,550 534,555,000 1,119,555,000
2008 17% Bonus Issue for the year 2007 1,903,243 100 13,098,793 190,324,300 1,309,879,300
17% Bonus Issue for the year 2008 1,309,879 100 14,408,672 130,987,900 1,440,867,200
2009
1:1 Right Share 12,508,587 100 26,917,259 1,250,858,700 2,691,725,900
2010 11% Bonus Issue for the year 2009 2,960,899 100 29,878,158 296,089,850 2,987,815,750
14% Bonus Issue for the year 2010 41,829,420 10 340,610,995 418,294,200 3,406,109,950
2011
1:1 Right Share 298,781,575 10 639,392,570 2,987,815,750 6,393,925,700
2013 10% Bonus Issue for the year 2012 63,748,994 10 703,141,564 637,489,940 7,031,415,640

2014 12% Cash dividend for the year 2013 10 703,141,564 7,031,415,640
2015 12% Cash dividend for the year 2014 10 703,141,564 7,031,415,640
15% Cash dividend for the year 2015 10 703,141,564 7,031,415,640
2016
5% Bonus Issue for the year 2015 351,570,78 10 351,570,78 351,570,782 7,382,986,420
2017 20% Cash Dividend for the year 2016 10 7,382,986,420
2018 10% Bonus Share for the year 2017 73,829,864 10 812,128,506 738,298,640 8,121,285,060
2019 10% Bonus Share for the year 2018 81,212,850 10 893,341,356 812,128,500 8,933,43,560
2020 5% Cash 5% Bonus Share for 2019 44,667,067 10 938,008,423 446,670,670 9,380,084,230
2021 5% Cash 5% Bonus Share for 2020 46,900,421 10 984,908,844 469,004,210 9,849,088,440
2022 5% Cash 5% Bonus Share for 2021 49,245,442 10 1,034,154,286 492,454,420 10,341,542,860
2023 5% Cash 5% Bonus Share for 2022 51,707,714 10 1,085,862,000 517,077,140 10,858,620,000

Mohammad Shoeb, FCA Zafar Alam

EVP & Chief Financial Officer Managing Direcor & CEO