IDLCAnnual Report 2009

www.idlc.
com
ANNUAL REPORT 2009
committed to you
04 Notice of the 25th Annual General Meeting
05 Our Vision, Mission and Corporate Philosophy
06 Strategic Objectives and IDLC Core Values
07 IDLC Code of Conduct and Ethics
08 IDLC at a Glance
10 Shareholding Structure at the year end 2009
11 Company Information
12 History - Key Milestones
13 Board of Directors
14 Brief Profile of the Directors
18 Committees of the Board and Management Committees
19 Management and Executives
20 Management Committee
21 Head Office and Branches
23 Risk management
26 Statement on Corporate Governance
31 Statement of Directors' Responsibility for Financial Reporting
32 Corporate Social Responsibilty (CSR)
33 Report of the Audit Committee
34 Event highlights
36 Consolidated Performance at a glance during 2009
37 Key Operating and Financial Information -Consolidated
38 Value Added Statement
39 Performance Indicators
42 Highlights as Required by Bangladesh Bank
43 Business Environment and Its Likely Impact on the Financial Performance of IDLC
44 Chairman's Review
46 CEO & Managing Director's Review of Business Environment
51 Directors' Report to the Shareholders
63 Auditors’ Report and Financial Statements of IDLC Finance Limited
133 Auditors’ Report and Financial Statements of IDLC Securities Limited
Notice of the 25th
Annual General Meeting
Notice is hereby given that the 25th Annual General Meeting of the shareholders of the Company will be held on Monday,
April 19, 2010 at 11.00 a.m. at the Celebrity Hall of Bangabandhu International Conferance Centre, Agargaon, Dhaka 1207,
to transact the following business:
A1025-01 Approval of Appointment of CEO & Managing Director of the Company;

A1025-02 Adoption of Directors’ Report, Auditors’ Report and Audited Financial Statements for the year ended
December 31, 2009;
A1025-03 Declaration of stock dividend @100% (one Share for every one share held) and cash dividend @10%
(Tk. 10 per share) for the year ended December 31, 2009;
A1025-04 Election of Directors in place of those who shall retire by rotation in accordance with the provisions of
Articles of Association of the Company;
A1025-05 Appointment of Auditors of the Company and fixation of their remuneration;
A1025-06 Re-fixation of Directors’ Remuneration to Tk. 5,000 from Tk. 4,000 for attending meetings of the Board and its
Committees, and
A1025-07 Approval for issuance of Bonds/Zero Coupon Bonds
By order of the Board
H. M. Ziaul Hoque Khan

Company Secretary
Dated: March 16, 2010
Notes
1. March 28, 2010 is the record date
2. A shareholder may appoint a proxy to attend and vote in his place by filling proxy form as per Article 103 of the
Articles of Association of the Company. The proxy form, duly completed and stamped, must be deposited at the office
not later than 48 hours before the time scheduled for holding the meeting
3. Pursuant to Article 81 of the Articles of Association, a corporate member of the Company, by resolution of the Board
of Directors or other Governing Body of such body corporate, may authorise such person as it thinks fit, to act as
representative at any meeting of the members of the Company.
IDLC FINANCE LIMITED ANNUAL REPORT 2009
04
Vision, Mission and
Corporate Our Vision
Philosophy Become the best performing and most innovative
financial solutions provider in the country
Our Mission
Create maximum possible value for all our stakeholders
by adhering to the highest ethical standards
For our Customers

Relentless pursuit of customer satisfaction through
delivery of top quality services
For our Shareholders

Maximise shareholders' wealth through a sustained return
on their investments
For our Employees

Provide job satisfaction by making IDLC a centre of
excellence with opportunity for career development
For the Society

Contribute to the well being of the society, in general, by
acting as a responsible corporate citizen
Our Goal
Long term maximisation of stakeholders' value in a
socially responsible manner
Our Corporate Philosophy

Discharge our functions with proper accountability for
actions and results and bind ourselves to the highest
ethical standards
05
Strategic Objectives and IDLC Core Values
Strategic Objectives
> Create synergy by combining high quality and strategically balanced portfolios
> Provide a range of financial products and services to our customers under one roof
> Strengthening our position in capital market operation
> Balanced diversification of funding sources
> Maximize corporate value through sustained high quality growth
> Strengthening corporate governance practices
IDLC Core Values

Commitment to national interest
IDLC always gives its first priority to the
national interest. Highest importance ce is always
attached to country's growth and prosperity.
rosperity.
Developing Leaders
Commitment
IDLC employees are trained with thee object of to national
developing good leaders rather thann good interest
Highest
managers Developing
ethical
Leaders
Creativity and innovations standards
IDLC places emphasis on creativity and
innovation to achieve organisational
al
excellence
Highest ethical standards

Creativity Accountability
IDLC believes in adherence to the
highest ethical standards
Accountability
IDLC complies with the highest standard
dard of
accountability in the conduct of its operations
and in making investment decisionss Credibility
innovations
Credibility
IDLC acts with responsibility by keeping
ping
IDLC
promises given to its business partners
ners and Core Values
regularly disclosing reliable and unbiased
biased
information to stakeholders
06
IDLC Code of In accordance with approved and agreed Code of
Conduct, IDLC employees shall:
Conduct and > act with integrity, competence, dignity and in an
ethical manner when dealing with customers,
Ethics prospects, colleagues, agencies and public
> act and encourage others to behave in a professional

and ethical manner that will reflect positively on IDLC
employees, their profession and on IDLC, at large.
> strive to maintain and improve the competence of all

in the business
> use reasonable care and exercise independent

professional judgement
> not restrain others from performing their professional

obligations
> maintain knowledge of and comply with all applicable

laws, rules and regulations
> disclose all conflicts of interest
> deliver professional services in accordance with IDLC

policies and relevant technical and professional
standards
- respect the confidentiality and privacy of customers,

people and others with whom they do business
- not engage in any professional conduct involving

dishonesty, fraud, deceit or misrepresentation or
commit any act that reflects adversely on their
honesty, trustworthiness or professional competence
IDLC employees have an obligation to know and

understand not only the guidance contained in the Code
of Conduct, but also the spirit on which it is based.
07
IDLC at a Glance
IDLC Finance Limited commenced its journey in 1985, Since 1985, when IDLC was formed as the pioneering
as the first ever leasing company of the country. In leasing company in Bangladesh, the company
1995, IDLC was licensed as a Financial Institution by the continues to evolve as an innovative financial solutions
country's central bank, Bangladesh Bank, following the provider. IDLC is now able to offer its customers,
enactment of the Financial Institution Act 1993. During integrated and customized financial solutions - all
the last two and a half decades, IDLC has grown in under one roof. The Company’s wide array of products
tandem with the country's transition into a developing and services range from retail products, such as home
country and has emerged as Bangladesh's leading and car loans, corporate and SME products including
multiproduct financial institution. To encapsulate the lease and term loans, structured finance services
evolving nature of the company, IDLC has changed its ranging from syndications to capital restructuring and
name to IDLC Finance Limited from earlier Industrial a complete suite of merchant banking and capital
Development Leasing Company of Bangladesh Limited market services.
in August 2007.
IDLC's Products and Services
IDLC's product and service offerings include:
Debt Products: Liability Products:

Lease Finance Term Deposit Schemes
Term Finance Debentures
Domestic Factoring of Accounts Receivable Securitised Bonds
Bill/Invoice Discounting
Work Order Finance
Corporate Real Estate Finance Corporate Services:
Real Estate Developer Finance Project Finance Appraisal
Home Loans with Home Loan Shield Project Loan Syndication
Home Equity Loans Working Capital Arrangement
Car Loans for Individuals Syndication Agency services
Business Loan Refinancing arrangements
Machinery Loan Corporate Financial Advisory
Double Loan Securitisation of Receivables
Festival Loan Trusteeship Management
Personal Loan Professional supports to SMEs
Investment Products:
Common Equity investments
Preferred Equity Investments
Bonds
08
Merchant Banking and Portfolio Management Services:
Investor Discretionary/Non-discretionary Portfolio Management Services "Cap Invest" and "Managed Cap Invest"
IPO Advisory
Issue Management
Underwriting
Investment Advisory
Placement of Equity, Debentures and Bonds
Custodial Services
IDLC's unique institutional shareholding structure, comprising mostly of financial institutions, helps the company to
constantly develop through sharing of experience and professional approach at the highest policy making level.
Subsidiary
IDLC Securities Limited, a fully owned subsidiary of IDLC, offers full-fledged international standard brokerage service
for retail and institutional clients. It has seats on both the Dhaka and Chittagong Stock Exchanges. It is also a Depository
Participant (DP) of Central Depository Bangladesh Limited (CDBL).
09
Shareholding Structure at
the year end 2009
Sponsors 36.01%
The City Bank Limited 28.39%
Sadharan Bima Corporation 7.62%
General 63.99%
Eskayef Bangladesh Limited 8.00%
Mercantile Bank Limited 7.50%
Reliance Insurance Limited 7.00%
Eastern Bank Limited 6.00%
Transcraft Limited 4.01%
Investment Corporation of Bangladesh 1.87%
M.M. Capital Investment Company 1.82%
Bangladesh Lamps Limited 1.32%
Marina Apparels Limited 1.00%
Other Institutions 7.73%
Individuals 17.74%
C A P I T A L
Authorised : Tk. 1,000,000,000 (10,000,000 ordinary shares of Tk.100 each)
Paid-up : Tk. 300,000,000 (3,000,000 ordinary shares of Tk.100 each)
10
Company Information
Registered Name of the Company
IDLC Finance Limited
Legal Form
A public limited company incorporated in Bangladesh on May 23, 1985 under the Companies Act 1913 and listed with
Dhaka and Chittagong Stock Exchanges on March 20, 1993 and November 25, 1996, respectively.
Licensed as Financial Institution under Financial Institutions Act, 1993 on February 7, 1995.
Company Registration No. Major Stock Brokers

C 14218/1992 of 1984-1985 Lanka Bangla Securities Limited
SES Securities Limited
Bangladesh Bank License No. IDLC Securities Limited
BCD(Non-banking)/Dhaka/2/1995
Memberships
Registered Office
Bay's Galleria (1st Floor) Associations
57 Gulshan Avenue Bangladesh Leasing & Finance Companies Association
GPO Box No. 3160, Dhaka 1212 Asian Leasing and Finance Association
Tel: +880 (2) 883 4990 (Auto Hunting) Bangladesh Merchant Bankers Association
Facsimile: +880 (2) 883 4377 Bangladesh Association of Publicly Listed Companies
E-mail: mailbox@idlc.com
Institute
Corporate Web Site The Institute of Bankers, Bangladesh
www.idlc.com
Chambers of Commerce & Industry
Auditors International Chamber of Commerce - Bangladesh
Rahman Rahman Huq Metropolitan Chamber of Commerce & Industry
Chartered Accountants Dhaka Chamber of Commerce & Industry
9 Mohakhali C/A Bangladesh German Chamber of Commerce & Industry
Dhaka 1212
Principal Bankers
Standard Chartered Bank
Citibank N.A.
11
History - Key Milestones
May 23, 1985 Incorporation of the Company
February 22, 1986 Commencement of leasing business
October 1, 1990 Establishment of branch in Chittagong, the main port city
March 20, 1993 Listed on the Dhaka Stock Exchange
February 7, 1995 Licensed as a Non-Banking Financial Institution under the Financial Institutions Act, 1993
November 25, 1996 Listed on the Chittagong Stock Exchange
May 27, 1997 Commencement of Home Finance and Short Term Finance operations
January 22, 1998 Licensed as a Merchant Banker by the Securities and Exchange Commission
January 15, 1999 Commencement of Corporate Finance and Merchant Banking operations
January 29, 2004 Opening of the first retail focused branch at Dhanmondi
June 29, 2004 Opening of Gulshan Branch
November 22, 2004 Launching of Investment Management Services "Cap Invest"
February 7, 2005 Issuance of Securitised Zero Coupon Bonds by IDLC Securitisation Trust 2005
January 2, 2006 Opening of SME focused branch at Bogra
April 6, 2006 Opening of Branch at Uttara
May 18, 2006 Opening Merchant Banking branch in the port city of Chittagong
July 1, 2006 Relocation of Company's Registered and Corporate Head Office at own premises at 57,
Gulshan Avenue
September 18, 2006 Commencement of operation of IDLC Securities Limited, a wholly owned subsidiary of IDLC
March 14, 2007 Launching of Discretionary Portfolio Management Services "Managed Cap Invest"
August 5, 2007 Company name changed to IDLC Finance Limited from Industrial Development Leasing
Company of Bangladesh Limited
December 3, 2007 IDLC Securities Limited Chittagong Branch commenced operation
December 18, 2007 IDLC Securities Limited DOHS Dhaka Branch opened
January 6, 2009 IDLC Finance Limited and IDLC Securities Limited open Sylhet branches
August 9, 2009 IDLC Securities Limited inaugurates its Gulshan Branch
12
Board of Directors
(As on March 16, 2010)
Chairman
Anwarul Huq, Director, Reliance Insurance Limited
- Nominated by Reliance Insurance Limited
Directors
Rubel Aziz, Director, The City Bank Limited
- Nominated by the City Bank Limited
Md. Habibur Rahman Mollah, FCA, COO, Bangladesh Lamps Limited and
Bangladesh Electrical Industries Limited
- Nominated by Transcom Group
Aziz Al Kaiser, Chairman, The City Bank Limited

Meherun Haque, Director, The City Bank Limited

K. Mahmood Sattar, Managing Director & CEO, The City Bank Limited
Yongbok Jo, - Nominated by the City Bank Limited
Md. Rezaul Karim, Managing Director, Sadharan Bima Corporation

- Nominated by Sadharan Bima Corporation
A. K. M. Shaheed Reza, Director, Mercantile Bank Limited

- Nominated by Mercantile Bank Limited
Farooq Sobhan, President, Bangladesh Enterprise Institute

- Independent Director
CEO & Managing Director

Selim R. F. Hussain
Company Secretary
H. M. Ziaul Hoque Khan
13
Brief Profile of the Directors
Mr. Anwarul Huq
Chairman, nominated by Reliance Insurance Limited
Mr. Anwarul Huq is the founder Director and a member of the Audit Committee of
Reliance Insurance Limited. Mr. Huq is also the Chairman and Chief Executive Officer of
Tyser Risk Management (Bangladesh) Limited. He carries vast experience in the field of
insurance business, and is widely known in the insurance industry and business circles.
He is also the Honorary Consul General of Greece and Senior Vice-President of
Bangladesh Squash Rackets Federation.
Rubel Aziz
Director nominated by The City Bank Limited
An Industrial entrepreneur, Mr. Rubel Aziz has been in the business for a long period
and has set up and successfully executed a good number of industrial undertakings.
He is the Chairman of Janata Insurance Co. Ltd. and Vice Chairman of IT Consultant Ltd.
(ITCL). He is the Managing Director of Partex Beverage Ltd., a franchise of Royal Crown
Cola International (RC Cola), Partex Plastics Ltd., Plastic Accessories Ltd., a licensee of
BRAIFORM, incorporating Plasti-form and Braitrim and Partex Properties Ltd. He is one
of the Directors of The City Bank Ltd. He is also a Director of a number of companies of
Partex Group, and IBAIS University. He is also the elected President of Gulshan Club.
Habibur Rahman Mollah, FCA

Director nominated by Transcom Group
Mr. Md. Habibur Rahman Mollah is a Chartered Accountant with twenty nine years of
experience in key positions of Finance and Accounts with multi-disciplinary business
organisations. He started his career in 1983 and, at present, is working in Transcom
Group, one of the largest business conglomerates in the country, as Chief Operating
Officer of Bangladesh Lamps Limited , Bangladesh Electrical Industries Limited and
Transcom Cables Limited.
14
Aziz Al Kaiser
Mr Kaiser graduated from U.S. International University, London, UK. An industrial

Entrepreneur, Mr. Kaiser, has a track record of establishing and running a good number
of industrial projects successfully. Mr Kaiser is the Chairman of The City Bank Limited
and Vice Chairman of Partex Group. He is also the Managing Director of Star Particle
Board Mills Ltd., Star Vegetable Oil Mills Ltd., Partex Ltd., Partex Real Estate Ltd., Partex
Builders Ltd., Fairhope Housing Ltd., Corvee Maritime Co. Ltd., Partex Furniture
Industries Ltd. and Partex Laminates Ltd. Mr Kaiser also holds Directoship in Janata
Insurance Company Ltd., Danish Condensed Milk (BD) Ltd., Danish Milk (BD) Ltd., Danish
Food Ltd., Rubel Steel Mills Ltd., etc. He is also a Director of Bangaldesh Cricket Board.
Meherun Haque
Mrs. Meherun Haque is the daughter of Mr Deen Mohammad, a leading industrialist

and Chairman of Phoenix Group. She holds Directorship in Phoenix Insurnce Company
Limited and Phoenix Finance and Investments Limited.
K. Mahmood Sattar
Mr. K. Mahmood Sattar started his career with the former ANZ Grindlays Bank in 1981.
During his career with the bank he worked in Mumbai, India as Corporate Dealer in
treasury, for more than two years in Melborne, Australia, as Manager corporate banking
and after returning from abroad Mr. Sattar was Regional Head in Chittagong. Thereafter,
for more than five years he was Head of Corporate & Investment Banking in Dhaka. Mr.
Sattar joined Eastern Bank Limited as Managing Director & CEO in January, 2001 and
successfully transformed the bank to a modern bank. Mr. Sattar jointed The City Bank
Limited in July, 2007 as Managing Director & CEO. He is the Chairman of the Association
of Bankers, Bangladesh (ABB) and Chairperson of SWIFT user group in Bangladesh.
15
Yongbok Jo
An MBA from Gorge Washington University, USA, Mr. Yongbok Jo joined Korea Develop-
ment Financing Corporation (KDFC), which was one of the sponsor shareholders of IDLC,
in 1985. Mr. Jo also worked as Deputy Managing Director of IDLC since July 2000 until
September 2009. Mr. Jo completed his B. A. from Seoul National University. During his
career in KDFC, Mr. Jo held important positions in fund management, lease marketing,
marketing planning, business strategy, credit analysis and asset management team.
Md. Rezaul Karim

Director Nominated by Sadharan Bima Corporation
Mr. Md. Rezaul Karim is the Managing Director of Sadharan Bima Corporation (SBC). He
started his career at SBC in 1981 as a Trainee officer. During his career with SBC he
attended a number of training and workshops on insurance related matters both at
home and abroad. Mr. Rezaul Karim is also a nominated Director of Investment
Corporation of Bangladesh (ICB), National Housing Finance and Investments Ltd. (NHFIL)
and Central Depository Bangladesh Ltd. (CDBL). He is also a Director of Asian
Re-insurance Corporation, Bangkok, Thailand.
A. K. M. Shaheed Reza
Director Nominated by Mercantile Bank Limited
Mr. A. K. M. Shaheed Reza is a Director of Mercantile Bank Ltd. and Global Insurance
limited. He is also Chairman of number of companies established by him. Mr. Reza is also
a Co-Chairman of Standing Committee on Utilization Expert (woven) in BGMEA and a
member of a Standing Committee of FBCCI. He is also actively involved in social activities
and is the Chairman of Dholia High School Management Committee, Feni, Bagherhat
High School Managment Committee, Feni and Thakurhat Govt. Primary School Manage-
ment Committee,Feni.
16
Farooq Sobhan
Independent Director
Mr. Farooq Sobhan is the President and Chief Executive of Bangladesh Enterprise
Institute (BEI). Mr. Sobhan was Executive Chairman, Board of Investment and Special
Envoy to the Prime Minister 1997-1999, Foreign Secretary 1995-1997, High Commis-
sioner to India 1992-1995, Ambassador to China 1987-1991, High- Commissioner to
Malaysia 1984-1987, Ambassador and Deputy Permanent Representative to the
United Nations 1981-1984. He served as Chairman of the Group of 77 at the UN
1982-1983, and was Chairman, UN Commission on TNCs between 1991-1992. Mr.
Sobhan is a Member of the International Research Committee of the Centre for
Security Studies, Colombo. He is a member of the Board of Governors of the South
Asia Centre for Policy Studies (SACEPS), based in Kathmandu and was Co-Chairman
of the Coalition for South Asian Co- operation (CASAC) during 1994-2001. He has
written extensively on the subject of regional co-operation in South Asia and is
currently involved in a number of initiatives in the region.
Selim R. F. Hussain
Ex Officio
Mr. Selim R.F. Hussain is career banker, with an Honours degree in Accounting from
Dhaka University and an MBA (Finance major) from the Institute of Business
Administration, also from Dhaka University.
Mr. Hussain has worked in various roles with the two largest multi-national banks in
Bangladesh, ANZ Grindlays Bank and Standard Chartered Bank, for the past twenty
four years. He has resided in and worked in India and Australia for significant periods
of his career and prior to moving to IDLC Finance Limited in January 2010, was the
Chief Financial Officer for Standard Chartered Bank’s Consumer Banking Division in
India. Mr. Hussain has also been CFO for Standard Chartered Bank, Bangladesh, from
2002 to 2007.
17
Committees of the Board and
Management Committees
Committee and Mandate Composition
Executive Committee
The matter related to ordinary business operations of the Rubel Aziz, Chairman
Company and the matters that the Board of Directors from K. Mahmud Sattar, Member
Md. Rezaul Karim, Member
time to time, authorises are vested on this Committee.
A. K. M. Shaheed Reza, Member
Selim R. F. Hussain, Member
Audit Committee
The Committee is empowered, among other things, to
Md. Habibur Rahman Mollah, FCA, Chairman
examine any matter relating to the financial affairs of the
Anwarul Huq, Member
Company and to review all audit and inspection programs,
Rubel Aziz, Member
internal control systems and procedures, accounting
Md. Rezaul Karim, Member
policies and adherence to compliance requirements, etc.
Farooq Sobhan, Member
Management Committee (ManCom)
To provide a forum for discussions on various strategic Selim R. F. Hussain, CEO & Managing Director
issues. Arif Khan, Deputy Managing Director
H. M. Ziaul Hoque Khan, General Manager & CFO
Deputy General Managers
Head of Merchant Banking Division
Head of IDLC Securities Limited
Head of Internal Control & Compliance
Credit Evaluation Committee (CEC)
CEC evaluates all projects/proposals of financing activities Selim R. F. Hussain, CEO & Managing Director
of the Company from risk point of view. Arif Khan, Deputy Managing Director
H. M. Ziaul Hoque Khan, General Manager & CFO
M. Jamal Uddin, Head of Corportae Division
Asif Saad Bin Shams, Head of Credit Risk Management
Asset Liability Management Committee (ALCO)
The Asset Liability Committee (ALCO) of the Company Selim R. F. Hussain, CEO & Managing Director
assesses the changes in interest rate, market conditions, Arif Khan, Deputy Managing Director
carry out asset liability maturity gap analysis, re-pricing of H. M. Ziaul Hoque Khan, General Manager & CFO
products and thereby takes effective measures to monitor Head of business units
and control interest rate risk. Head of Treasury
Internal Control Committee

Internal Control & Compliance Committee addresses Selim R. F. Hussain, CEO & Managing Director
operational risk and frames and implements policies to Arif Khan, Deputy Managing Director
encounter such risks. The Committee assesses operational H M Ziaul Hoque Khan, General Manager & CFO
risk across the Company, as a whole, and ensures that an Head of Internal Control and Complinace Division
appropriate framework exists to identify, assess and Head of business units
manage operational risk.
18
Management and
Executives
Selim R. F. Hussain
Deputy Managing Director

Arif Khan, CFA, FCMA
General Manager & Chief Financial Officer Senior Managers

H. M. Ziaul Hoque Khan, FCA Shafayet Hossain
Kazi Mahmood Hossain
Deputy General Managers Ziaul Huq
M. Jamal Uddin Mahbub-ul-Kader
Shaikh Kamruzzaman Laila Nasrin
Mir Tariquzzaman Md. Masud Karim Majumder
Bilquis Jahan Bishakha Mazumdar
Arifur Rahman Mahjebeen Binte Rahman
Asif Saad Bin Shams Md. Mohidur Rahman
Zahid Ibne Hai Rajib Kumar Dey
Rubayet-E-Ferdous
Assistant General Managers Md. Al-Amin
Iqbal Mahmud Chinmoy Das
Irteza A. Khan A. H. M. Nazmul Hasan
Indrajit Mallick Firoz Kabir
M. Maksudul Hoque Asifur Rahman
Bidyut Kanti Das
Md. Saifuddin Chief Technology Officer
Md. Moniruzzaman Mir Tariquzzaman
Ifham Siddiqui
Chief Risk and Compliance Officer
Iqbal Mahmud
19
Management Committee
a] Selim R. F. Hussain
b] Arif Khan, CFA, FCMA

Deputy Managing Director
c] H. M. Ziaul Hoque Khan, FCA

a b General Manager & CFO
d] M. Jamal Uddin
Deputy General Manager
e] Shaikh Kamruzzaman
f] Mir Tariquzzaman
c d e DGM & Chief Technology Officer
g] Bilquis Jahan
h] Arifur Rahman
i] Asif Saad Bin Shams

f g h
j] Zahid Ibne Hai

k] Md. Saifuddin
Assistant General Manager
i j k l] Md. Moniruzzaman
Assistant General Manager
m] Iqbal Mahmud
AGM & Chief Risk &
Compliance Officer
l m
20
Head Office and Branches
CORPORATE HEAD OFFICE CHITTAGONG BRANCH
Bay’s Galleria (1st Floor) Jahan Building 4 (Ground Floor)
57 Gulshan Avenue, Dhaka 1212 76/77 Agrabad C/A, Chittagong 4100
Telephone: +880 (2) 883 4990 Telephone: + 880 (31) 711 034, 713 742, 251 0117-8
Facsimile: +880 (2) 883 4377 Facsimile: +880 (31) 715 895
E-mail: mailbox@idlc.com E-mail: idlcctg@idlc.com
DILKUSHA BRNCH SYLHET BRANCH

Eunoos Trade Centre, Level 13 Casablanca (2nd Floor)
52-53 Dilkusha C/A, Dhaka 1000 982 Dargah Gate, Sylhet 3100
Telephone: +880 (2) 956 0111 Telephone: +880 (821) 283 2461-3
E-mail: mailbox@idlc.com E-mail: idlcsyl@idlc.com
MERCHANT BANKING DIVISON BOGRA BRANCH

36 Dilkusha C/A (13th floor), Dhaka 1000 Sairul Complex (2nd Floor)
Telephone: +880 (2) 957 1842 Sherpur Road, Sutrapur, Bogra 5800
Facsimile: +880 (2) 957 1243 Telephone: +880 (51) 699 17, 69 838
E-mail: merbank@idlc.com Facsimile: + 880 (51) 698 39
E-mail: idlcbog@idlc.com
DHANMONDI BRANCH
House No. 39A, Road No. 14A (3rd Floor) NARAYANGANJ BRANCH
Dhanmondi, Dhaka 1209 Sattar Tower (Ground Floor)
Telephone: + 880 (2) 815 7632 50 S. M. Maleh Road, Tanbazar
Facsimile: +880 (2) 811 2146 Narayanganj 1400
E-mail: idlcdhn@idlc.com Telephone: +880 (2) 764 8213-6
Facsimile: + 880 (2) 764 8217
GULSHAN BRANCH E-mail: idlcngonj@idlc.com
Taj Marriot (1st Floor)
25 Gulshan Avenue, Dhaka 1212 SAVAR BRANCH
Telephone: +880 (2) 988 7196, 986 3252, 883 4152 Alam Plaza (2nd Floor)
Facsimile: +880 (2) 988 6837 122/B Jaleshwar, Savar, Dhaka 1340
E-mail: idlcgln@idlc.com Telephone: +880 (2) 774 4961-3
E-mail: idlcsavar@idlc.com
UTTARA BRANCH
Monsur Complex (2nd Floor), IMAMGANJ SME BOOTH
Plot No. 59/A, Road No. 7, Sector # 4, 75 Midfort Road (2nd Floor)
Uttara Model Town, Dhaka 1230 Imamganj
Telephone: +880 (2) 893 2487, 893 2683, 893 2340 Dhaka 1100
Facsimile: +880 (2) 893 2487 Telephone: +880 (2) 734 3766-7
E-mail: idlcuttara@idlc.com E-mail: mailbox@idlc.com
21
Dhaka
Uttara
Dhanmondi
GAZIPUR SME BOOTH Gulshan
CHO
Rahmat Tower (2nd Floor) IDLC Securities Ltd.

Dilkusha
Holding No. 1034, Outpara Imamganj SME Booth
Joydebpur
Gazipur 1700
Telephone: +880 (2) 926 2496, 926 2498
E-mail: mailbox@idlc.com
IDLC SECURITIES LIMITED

(A wholly owned IDLC subsidiary)
HEAD OFFICE
36 Dilkusha C/A (13th floor)
Dhaka 1000
Telephone: +880 (2) 957 1842
Facsimile: +880 (2) 716 1544
E-mail: securities@idlc.com
DOHS MOHAKHALI BRANCH

House No. 109, Park Road
Block: A, New DOHS
Mohakhali, Dhaka 1206
Telephone: +880 (2) 871 5081, 871 5289
IDLC Corporate Head office
Facsimile: +880 (2) 871 4510
E-mail: idlcsldohs@idlc.com IDLC Branch offices
IDLC Subsidiaries
CHITTAGONG BRANCH
Ayub Trade Centre (3rd Floor)
1269/B Sk. Mujib Road GULSHAN BRANCH
Agrabad Commercial Area Capita South Avenue Tower (5th Floor)
Chittagong 4100 7 Gulshan Avenue, Dhaka 1212
Telephone: +880 (31) 251 4051-52 Telephone: +880 (2)-988 3898, 988 9861
E-mail: idlcslctg@idlc.com E-mail: idlcslgulshan@idlc.com
SYLHET BRANCH GAZIPUR BRANCH

Casablanca (2nd Floor) Rahmat Tower (2nd Floor)
982 Dargah Gate, Sylhet 3100 Holding No. 1034, Outpara
Telephone: +880 (821) 710292, 710321 Joydebpur, Gazipur 1700
Facsimile: +880 (821) 283 2464 Telephone: +880 (2) 926 2496, 926 2498
E-mail: idlcslsylhet@idlc.com E-mail: idlcslgazipur@idlc.com
22
Risk Management
IDLC always concentrates on delivering high value to its stakeholders
through appropriate trade off between risk and return. A well structured
and proactive risk management system is in place within the Company to
address risks relating to credit, market, liquidity and operations.
Risk is the element of uncertainty or possibility of loss liberalization, and consolidation it is essential that FIs
that prevail in any business transaction in any place, in have robust credit risk management policies and
any mode and at any time. Risk is an integral part of procedures that are sensitive and responsive to these
financing business. Risk management entails the changes. At IDLC, credit risk may arise in the following
adoption of several measures to strengthen the ability forms:
of an organization to cope with the vagaries of the
complex business environment in which it operates. > Default risk
> Exposure risk
IDLC always concentrates on delivering high value to > Recovery risk
its stakeholders through appropriate trade off between > Counter party risk
risk and return. A well structured and proactive risk > Related party risk
management system is in place within the Company to > Legal risk
address risks relating to credit, market, liquidity and
> Political risk
operations. Risk grading is assigned at the inception of
lending considering the industry, business, financial
To encounter and mitigate credit risk the following
and management risk associated with the financing.
control measures are in place at IDLC:
The Company has different committees for risk
management and appropriate internal control " Multilayer approval process
measures are also in place to mitigate risk. " Policy for maximum sector and group exposure limit
" Policy for customers maximum asset exposure limit
In addition to the industry best practices for assessing,
identifying and measuring risks, IDLC also considers " Mandatory search for credit report from Credit
guidelines for managing core risks of financial Information Bureau
institutions issued by the Country's Central Bank, " Looking into payment performance of customer
Bangladesh Bank, vide FID Circular No. 10 dated before financing
September 18, 2005 for management of risks. " Annual review of clients
" Adequate insurance coverage for funded assets
Credit Risk " Vigorous monitoring and follow up by Special Assets
Management Team
Credit risk is the possibility that a borrower or counter
" Strong follow up of compliance of credit policies by
party will fail to meet agreed obligations. Thus
Operational Risk Management Department
managing credit risk for efficient management of a
financial institution (FI) has become the most crucial " Taking collateral
task. Given the fast changing, dynamic global " Seeking external legal opinion
economy and the increasing pressure of globalization, " Maintaining neutrality in politics and following arm's
23
Risk Management
The Credit Evaluation Committee (CEC) regularly meets to review the market
and credit risk related to lending and recommend and implement appropriate
measures to counter associated risks
length approach in related party transactions stakeholders. This arises from the adverse mismatch of
" Regular review of market situation and industry maturities of assets and liabilities.
exposure
Liquidity requirements are managed on a day-to-day
The Credit Evaluation Committee (CEC) regularly meets basis by the Treasury Division which is responsible for
to review the market and credit risk related to lending ensuring that sufficient funds are available to meet
and recommend and implement appropriate measures short term obligations, even in a crisis scenario, and for
to counter associated risks. The CEC critically reviews maintaining a diversity of funding sources. Treasury
projects from risk point of view. Division maintains liquidity based on historical
requirements, anticipated funding requirements from
An independent Credit Risk Management Department operation, current liquidity position, collections from
is in place, at IDLC, to scrutinize projects from a financing, available sources of funds and risks and
risk-weighted point of view and assist the manage- returns.
ment in creating a high quality credit portfolio and
maximize returns from risk assets. The Asset Liability Committee also oversee the asset
liability maturity position and recommend and
Market Risk
implement appropriate measure to encounter
Market risk refers to the risk of fluctuation in a variety liquidity risk.
of markets such as interest rates, prices of securities
where the values of assets and liabilities can change Operational Risk
and there exists the risk of incurring losses.
Operational risk is the potential loss arising from a
The Asset Liability Committee (ALCO) of the Company breakdown in company's systems and procedures,
regularly meets to assess the changes in interest rate, internal control, compliance requirements or corporate
market conditions, carry out asset liability maturity gap governance practices, that results in human error,
analysis, re-pricing of products and thereby takes fraud, failure, damage of reputations, delay to perform
effective measures to monitor and control interest rate or compromise of the company's interests by employ-
risk. To encounter market risk we are negotiating for ees. Operational risk may also arise from the following:
facilities that matches the maturity structure with ideal
interest rate, maintaining a balanced diversification in > Turnover of trained staff
investments and maintaining prudent provisioning > Risk of insider dealings
policies. IDLC has also strong access to money market > Leakage of sensitive information
and credit lines at a competitive rate through good > Shortcomings of organizational structure
reputation, strong earnings, financial strength and > Risk of falling in credit ratings
credit rating. > Money laundering
> Changes in statutory requirements
However, in order to mitigate any adverse effect that > Technological obsolescence
results from fluctuating interest rate in future, we are
planning to issue bonds and fixed rate long term loans Appropriate internal control measures are in place, at
to raise funds. IDLC, to address operational risks. IDLC has also
established an internal control & compliance depart-
Liquidity Risk ment (ICCD) to address operational risk and to frame
and implement policies to encounter such risks. This
Liquidity risk arises when a company is unable to meet department assesses operational risk across the
the short term obligation to its lenders and Company as a whole and ensures that an appropriate
24
Risk Management
The Asset Liability Committee (ALCO) of the Company regularly meets to assess
the changes in interest rate, market conditions, carry out asset liability maturity
gap analysis, re-pricing of products and thereby takes effective measures to
monitor and control interest rate risk
framework exists to identify, assess and mange Business volume risks
operational risk. The function of ICCD is to constant
vigilance against leakage of Shareholders value by At IDLC, business volume risk may arise in the form of
identify, assess, measure, manage and transfer risk of falling business volumes and market share, risk
operational risk resulting from inadequate or failed of being overtaken and losing leadership position and
internal processes, people and system or from external risk of over trading which may affect profitability due
events. to volatile revenues and reduced spread earnings,
credit rating and reputation. Risk of over trading may
ICCD also develops policies, processes and procedures lead to insufficient capital. To encounter and mitigate
for managing operational risk in all of the company business volume risk the following risk mitigation
products, activities, processes and systems by identify- measures are in place, at IDLC:
ing and assessing the operational risk inherent in all
our products, activities, processes and systems. > Regular review of global economic situation and
taking appropriate measure
In particular, the following risk management measures > Innovative and convenient financial products and
are present at IDLC to address operational risk: services
> Taking prompt action on customer complaints
> Effective internal audit function throughout the > Frequent assessment of clients satisfaction
organisation with direct access of Chief Internal
> Regular review of performance against budget and
Auditor to the Audit Committee and Board
targets
> Suitable delegated authority level
> Review and analysis of competitors performance
> Awareness throughout the organisation on "Know
Your Customer" policy Assessment of the riskiness of the operation
> Maintenance of assets through maintenance
We estimate our risk exposure based on our own
agreement with vendor
assessment of the operations as well as the market
> Proper risk transfer measure by taking insurance perception to be as follows:
coverage for all assets of the Company
Type of Risk Rating
> Infusing organisational values and ethics in employees
Credit Risk Moderate
> Strict compliance of Employees Code of Conducts
Market Risk Moderate
> Regular compliance audit in relation to reporting
requirements to regulatory bodies and other Liquidity risk Low
stakeholders Operational risk Low
> Creating conducive working environment for the staff Business volume risk Moderate
> Implementation of computer based MIS system
> Implementation of proper back up system
> Regular upgrading of hardware and software to keep

it up to state of the art level
25
Statement on Corporate Governance
Corporate governance is the system by which compa- Board of Directors
nies are directed and controlled by the management in
the best interest of all the stakeholders, thereby Composition
ensuring greater transparency and better and timely
financial reporting. The Board of IDLC considers that its membership
should comprise of directors with an appropriate mix
The platform on which corporate governance of skills, experience and personal attributes that allow
principles are structured is that the Board of Directors is the directors, individually and the Board, collectively, to
responsible for proper governance, which includes discharge their responsibilities and duties, under the
setting out Company's strategic aims, providing the law, efficiently and effectively, understand the business
necessary leadership to implement such aims,
of the Company and assess the performance of the
supervising the management of the business and
management.
reporting to the shareholders on their stewardship.
The Board of IDLC comprises of ten directors who

The maintenance of effective corporate governance
possess a wide range of skills and experience over a
remains a key priority of the Board of IDLC Finance
Limited. To exercise clarity about directors' responsibili- range of professions, businesses and services. All of
ties towards the shareholders, corporate governance them are nominated by their respective institutions
must be dynamic and remain focused on the business except for the independent director. Each of our
objectives of the Company and create a culture of Directors brings in independent judgement and
openness and accountability. Keeping this in mind, considerable knowledge to perform their roles
clear structure and accountabilities supported by well effectively. The Board of Directors ensures that the
understood policies and procedures to guide the activities of the Company are always conducted with
activities of the Company's management have been adherence to strict and highest possible ethical
instituted. standards and in the best interests of the stakeholders.
IDLC considers that its corporate governance practices The Directors are appointed by the shareholders in the
comply with almost all the aspects of the SEC Notifica- Annual General Meeting (AGM). Casual vacancies, if
tion No. SEC/CMMRRCD/2006-158/Admin/02-08 dated any, are filled up by the Board in accordance with the
February 20, 2006 and almost all aspects of Bangladesh
stipulations of the Companies Act, 1994 and Articles of
Bank's DFIM Circular No. 7 dated September 25, 2007.
the Company. In addition, one third of the Directors
In addition, to establishing high standards of corporate
retire from the Board every year in the AGM, but remain
governance, IDLC also considers best governance
eligible for re-election.
practices in its activities. The independent role of Board
of Directors, separate and independent role of
Chairman and Chief Executive Officer, distinct role of
Role and Responsibilities of the Board
Company Secretary, Chief Financial Officer and Chief
The Board is committed to the Company seeking to
Compliance Officer, different Board committees allows
achieve superior financial performance and long term
IDLC to achieve excellence in best corporate gover-
prosperity, while meeting stakeholders' expectations of
nance practices.
26
The Board of Directors ensures that the activities of the Company are always
conducted with adherence to strict and highest possible ethical standards
and in the best interests of the stakeholders.
sound corporate governance practices. The Board > Delegation to Board Committees and management
determines the corporate governance arrangements and approval of transactions in excess of delegated
for the Company. As with all its business activities, the level
Board is proactive in respect of corporate governance > Approval of annual budgets including major
and puts in place those arrangements which it capital expenditure proposals
considers are in the best interest of the Company and > Critical evaluation of all proposals which require
Board's approval and/or directives
its shareholders, and consistent with its responsibilities
to other stakeholders. > Regular review of financial performance and
overdue situation
The Board duly complies with the guidelines issued by > Appointment and evaluation of the performance of
Bangladesh Bank regarding the responsibility and the top management position.
accountability of the Board, its Chairman and Chief > Ensuring that the senior management team has
Executive/Managing Director, vide DFIM Circular No. 7 the necessary skills and experience to perform
dated September 25, 2007. their functions, effectively, in the best interests of
the Company
The Board of Directors is in full control of the Company's > Monitoring the adequacy, appropriateness and
affairs and is also fully accountable to the shareholders. operation of internal controls
They firmly believe that the success of the Company > Ensure that technology and information systems
largely depends on the credible corporate governance used in the organisation are sufficient to operate
practices adopted by the Company. Taking this into the organisation effectively and maintain competi-
consideration, the Board of Directors of IDLC sets out its tiveness
strategic focus and oversees the business and related
affairs of the Company. The Board also formulates the Role of the Chairman
strategic objectives and policy framework for the
The Chairman of the Board is not the Chief Executive of
Company. In discharging the above responsibilities, the
the Company. The role of Chairman and CEO &
Board caries out, inter alia, the following functions as Managing Director are independent and separate. The
per the charter of the Board and Bangladesh Bank's Chairman runs the Board while the CEO & Managing
DFIM Circular No. 7, dated September 25, 2007: Director takes all executive decisions as delegated and
empowered by the Board.
> Determine, monitor and evaluate strategies,
policies, management performance criteria and
Conduct for the Board Members
business plans
> Periodic and timely reporting to the shareholders
The Board of Directors of IDLC Finance Limited is
on the affairs, progress and performance of the
committed to the highest standards of conduct in their
Company
relationships with its employees, customers, members,
> Ensuring proper decision-making and accountabil- shareholders, regulators and the public.
ity structure throughout the Company so that the
A Director of IDLC always
staff down the line is fully accountable to the
corporate management > Seeks to use due care in the performance of his/her
duties, be loyal to the Company, act in good faith
> Monitoring of significant business risks and
and in a manner such Director reasonably believes
reviewing how they are managed as per Bangla-
to be not opposed to the best interests of the
desh Bank's "Core Risk Guidelines"
Company
27
The role of Chairman and CEO & Managing Director are independent and separate.
The Chairman runs the Board while the CEO & Managing Director takes all executive
decisions as delegated and empowered by the Board
> Avoids i) appropriating corporate business normally held at the Registered and Corporate Head
opportunities for themselves that are discovered Office of the Company. The meeting are held
through the use of Company property or frequently, at least once in a quarter, to discharge its
information or their position as Board Member; ii) responsibilities and functions as mentioned above.
using Company property or information, or their Meetings are scheduled well in advance and the notice
position as Board Member, for personal gain; and of each Board Meeting is given, in writing, to each
iii) competing with the Company Director by the Company Secretary.
> Endeavours to avoid having his or her private
interests interfere with the interests of the The Company Secretary prepares the detailed agenda
Company for the meeting. The Board papers comprising the
agenda, explanatory notes and proposed resolutions
> Ensures that management is causing the are circulated to the directors in advance for their
Company's assets, proprietary information and review. The members of the Board have complete
resources to be used by the Company and its access to all information of the Company enabling
employees only for legitimate business purposes of them to work efficiently. The members of the Board are
the Company also free to recommend inclusion of any matter in the
> Maintains the confidentiality of information agenda for discussions. The Company Secretary and
entrusted to them in carrying out their duties and Chief Financial Officer always attends the Board
responsibilities, except where disclosure is Meeting and other senior management is invited to
approved by the Company or legally mandated or attend Board Meeting to provide additional inputs to
if such information is in the public domain the items being discussed by the Board and make
necessary presentations.
> Endeavours to deal fairly, and should promote fair
dealing by the Company, its employees and agents, There are procedures, at IDLC, for keeping the Board
with customers, suppliers and employees up-to-date with the Company's activities and relevant
> Complies and endeavours to ensure that the external developments. These includes senior manage-
management is causing the Company to comply ment presenting significant matters to the Board and it
with applicable laws, rules and regulations being able to seek further information on any issue
relating to performance, strategy, outlook, etc,.
> Avoids insider trading with respect to the purchase
and sale of the Company's securities and buy or sell During the year ended on December 31, 2009 a total of
securities while in possession of material ten (10) Board Meetings were held and attendance by
non-public information about the issuer of that the Directors are shown in the Annexure-II of the
security, whether the issuer is IDLC or another Directors' Report to the Shareholders.
company
> Endeavours to ensure that management is causing Internal Control
the Company to promote ethical behaviour and to
The Board is responsible for ensuring that the
encourage employees to report evidence of illegal
Company has an adequate and effective control system
or unethical behaviour to the CEO & Managing
in place. Although no system of internal financial
Director of the Company
control can provide absolute assurance against
material mis-statement or loss, the Company's internal
Board Meetings control systems have been designed to provide the
directors with reasonable assurance that assets are
The meetings of the Board of Directors of IDLC are safeguarded against unauthorised use by the employ
28
Properly designed management structure, clearly defined responsibilities, delegation

of authorities, establishment of accountability at each level and system of periodic
reporting and monitoring performance are the key elements of the internal
control framework employed in IDLC.
ees and/or management and/or third parties, transac- > To review the financial reporting process, the
tions are authorised and properly recorded and system of internal control and management of
material error and irregularities are either prevented or financial risks and the Company's processes for
detected within a reasonable period of time. monitoring compliance with laws and regulations
and its own code of business conduct
Properly designed management structure, clearly
> To ensure that Company has adequate processes in
defined responsibilities, delegation of authorities,
place to safeguard the assets of the Company
establishment of accountability at each level and
against unauthorized use by the employees/third
system of periodic reporting and monitoring perfor-
parties and to ensure that expenses incurred by
mance are the key elements of the internal control
the Company are for the purposes of the Company
framework employed in IDLC.
> To evaluate whether management is setting the
Audit Committee appropriate compliance culture by communicat-
ing the importance of internal control and the
The Audit Committee comprises of five Directors. The management of risk, and ensure that all employ-
Company Secretary also acts as the Secretary of the ees have understanding of their roles and
Audit Committee. The Committee is headed by a responsibilities
director who has professional background in account- > To review the arrangements made by the manage-
ing and finance. The rules of the Audit Committee ment for building a suitable Management
clearly lay down its authority, responsibility and Information System (MIS) including information
specific duties. technology system and its applications
The Committee is empowered, among other things, to > To review the corrective measures taken by the
examine any matter relating to the financial affairs of management as regard the reports relating to
the Company and to review all audit and inspection fraud and forgery, deficiency in internal control or
programs, internal control systems and procedures, other similar issues detected by internal and
accounting policies and adherence to compliance external auditors and inspectors of the regulatory
requirements, etc. This ensures that a sound financial authorities
reporting system is in place, which is well managed, > To review the activities and organizational
providing accurate, appropriate and timely information structure of internal audit functions and ensure
to the Board of Directors and stakeholders. that no unjustified restrictions or limitations are
made
The Chief Risk & Compliance Officer has direct access to
the Committee and it is directly reportable to the Board. > To do any other functions as the Board may
require from time to time
During the year under review, four (4) meeting of the
Audit Committee were held. Executive Committee
Functions and responsibilities of the Committee A five member Executive Committee is responsible for
strategic and operational plans of the business. The
> To assist the Board in fulfilling its oversight matter related to ordinary business operations of the
responsibilities including implementation of the Company and the matters that the Board of Directors,
objectives, strategies and overall business plans from time to time authorise, are vested in this Commit-
set by the Board for effective functioning of the tee in accordance with the Statement of General and
Company Operational Policies established and made by the
29
All disclosures required by the SEC, Listing Regulations of DSE & CSE and
Bangladesh Bank are made adequately and promptly. In addition to ensuring
timely compliance, this also enables dissemination of information to all
stakeholders and the public.
Board of Directors. This Committee assists IDLC in All disclosures required by the Securities and Exchange
taking prompt decisions and reacts swiftly to changes Commission, Listing Regulations of Dhaka and
in the market-place as they occur. The Rules of the Chittagong Stock Exchanges and Bangladesh Bank are
Executive Committee is framed by the Board. made adequately and promptly. In addition to
ensuring timely compliance, this also enables dissemi-
During the year under review, eight Executive Commit- nation of information to all stakeholders and the
tee meetings were held. public.
Credit Evaluation Committee (CEC) Preparation and Presentation of Financial

The CEC evaluates all projects/proposals of financing Statements and Directors' Responsibility
activities of the Company from the risk point of view.
The Committee is headed by the CEO & Managing The Companies Act 1994 requires the directors to
Director and consists of fivemembers. The members of prepare financial statements for each accounting year.
the Committee are CEO & Managing Director, Deputy The Board of Directors accepts the responsibility for
Managing Director, Head of Credit Risk Management preparation of the financial statements, maintaining
Department, CFO and Head of Corporate Division. adequate records for safeguarding the assets of the
Company, preventing and detecting fraud and/or other
Communications and Relationship with Shareholders irregularities, selecting suitable accounting policies
and apply those policies, consistently, and making
It is the Company's policy that all external communica- reasonable and prudent judgements and estimates
tions by the Company will: where necessary.
> be factual and subject to internal vetting and A separate statement of Directors' responsibility for
authorisation before issue financial reporting is given in page No. 31
> not omit material information
> be timely and expressed in a clear and objective
manner
IDLC strongly believes that all stakeholders should

have access to complete information on its activities,
performance and product initiatives. The Company's
web site www.idlc.com displays, interalia, the annual
report, half yearly report, product offerings, recent
announcements, presentations and events update.
The Company reports to the shareholders, four times a

year, through quartely, half yearly and detailed annual
report. Every shareholder has the right to attend the
annual general meeting, where they can meet and
communicate with the directors and express their
views regarding the Company's business, its future
prospects and other matters of interest. The sharehold-
ers are always encouraged to attend the meeting or, if
unable to attend, may appoint proxies.
30
Statement of Directors' Responsibility for
Financial Reporting
The Directors are responsible for ensuring that the Company, and which enables it to ensure that the
Company keeps proper books of accounts of all the financial statements comply with the requirements of
transactions and prepares financial statements, that the Companies Act, 1994, Securities and Exchange
give a true and fair view of the state of affairs and Rules 1987, Financial Institution Act 1993 and Listing
profit/loss for the year. Regulations of Dhaka and Chittagong Stock Exchanges
and amendments thereto.
The Board of Directors accepts responsibility for the
integrity and objectivity of the financial statements. It The auditor of the Company, Rahman Rahman Huq,
ensures that the estimates and judgements relating to Chartered Accountants, have carried out annual audits
the financial statements were made on a prudent and to review on the system of internal controls, as they
reasonable basis, so that they reflect in a true and fair consider appropriate and necessary, for expressing
manner, the form and substance of transactions, and their opinion on the financial statements. They have
reasonably present the Company's true state of affairs. also examined the financial statements made available
To ensure this, the Company has taken proper and by the management together with all the financial
sufficient care in installing a system of internal control, records, related data, minutes of shareholders and
which is reviewed, evaluated and updated on an Board meetings, relevant policies and expressed their
ongoing basis. The Operational Risk and Internal Audit opinion.
Department of the Company conducts periodic audits
to provide reasonable assurance that the established
policies and procedures of the Company were
consistently followed.
The Board of Directors confirms that the International

Financial Reporting Standard (IFRS) and International
Accounting Standards, as adopted in Bangladesh by
the Institute of Chartered Accountants of Bangladesh,
have been adhered to, subject to any material
departure being disclosed and explained in the notes
to the accounts. The Board also confirms that the
Company keeps accounting records, which disclose
with reasonable accuracy, the financial position of the
31
Corporate Social
Responsibilty (CSR)
An institution is only as good as the community it society and economy. Keeping this in mind, we have
grows up in. IDLC's policy is to constantly harness our started Women Entrepreneur Loan Scheme at a low
social capital and provide opportunities for this to rate, in 2007, to support women and which will help
grow. IDLC believes that CSR does not mean just them to be self dependent.
doling out largesse. Rather it means the strategic use
of money and other resources, to empower communi- Environmental issues
ties, and to help people help themselves.
IDLC believes in development that meets the needs of
We have made it a point to inculcate a deeper sense of our present generation, without compromising the
responsibility and a stronger awareness among our possibilities of future generations to meet their needs.
staff on this issue. We have created a strong culture of IDLC's products and services are not environmentally
corporate social responsibility, at all levels, and harmful. However as the Company is committed to the
laboured the point that IDLC has a significant role to society, environmental issues related with projects are
play as a leading corporate citizen. dealt with regularly in the process of project appraisal.
Our relationship managers investigate all related
Our branch network and increased SME focused environmental issues at the appraisal stage of projects.
operation enabled us not only to reach remote areas Extra efforts are given in analyzing the implications of
and many more lives, but also provide the small environmental issues for projects, which may have
entrepreneurs with new leases of life, which will help critical environment implications. We, generally, avoid
in sustainable economic and social development. We investments where environmental risks are considered
remain ever conscious of our social responsibilities as high. In all the investment projects, our appraisal team
an integral element of our corporate culture. always checks whether the client is complying with
the Environmental Conservation Act 1995 and
With a view to contributing to poverty reduction and Environmental Conservation Rules 1997.
sustainable development in Bangladesh by supporting
the development of SMEs that are close to being ready
to invest and/or export, that will benefit the poor,
through the creation of more better jobs, and
ultimately sustainable livelihood, IDLC established the
Local Enterprise Investment Centre (LEIC) in 2005. The
LEIC, a pilot project, managed by IDLC and funded by
the Canadian International Development Agency
(CIDA) was designed for a life span of forty months,
which ended on March, 2009.
Half of our total population are female and we believe

that they have the potential to contribute to the
32
Report of the
Audit Committee
The Audit Committee of IDLC was formed with the iii. To review the internal control system and
following major objectives: procedures
iv. Adherence to compliance requirements
1. To ensure proper and adequate internal controls
are in place The Committee normally meets every quarter. During
2009, four Audit Committee meetings were held to
2. To provide the Board with a clear understanding carry out the following tasks:
of where enterprise risks lie
1. Reviewed and discussed the Management Letter,
3. Assist the Board in discharging its responsibilities by external auditor Rahman Rahman Huq, for the
toward the stakeholders of the Company year ended December 31, 2008 on the annual
audit on Financial Statements of IDLC Finance Ltd.
In line with the above, IDLC introduced risk based
auditing in 2008. To further strengthen the audit, in 2. Reviewed and discussed the Bangladesh Bank
2009, we started risk assessment process of our major Inspection Report 2008 and, management’s
business operations. This enables the Committee to response on the report.
evaluate major business risk areas, so to ensure
proper controls are in place, which is well managed, 3. Reviewed various reports of Internal Control &
providing accurate, appropriate and timely informa- Compliance Department on operational, financial
tion to the Board of Directors, management, regula- procedures and branch activities.
tory bodies and shareholders.
4. The Committee reviewed the status report of
The Committee comprises of five Directors, Audit Plan 2008.
nominated by the Board of Directors, and, is headed
by a director with professional background in 5. The Audit Plan for 2009 was also reviewed by the
Accounting and Finance. It operates according to the Committee.
charter of the Committee approved by the Board. The
CEO & Managing Director attends the meeting by The Audit Committee is of the view that the internal
invitation. The Chief Risk & Compliance Officer has control and procedures are adequate to present a
direct access to the Committee and the Committee is true and fair view of the activities and financial status
directly reportable to the Board. of the Company and that its assets are safeguarded
against all unauthorised disposal.
The Committee is empowered to examine
i. Any matter relating to the financials and other

affairs of the Company
Md. Habibur Rahman Mollah, FCA
ii. To review all internal and external audit and Chairman, Audit Committee
inspection programs and reports
33
Event Highlights
01. Directors at 24th Annual General Meeting
02. A partial view of the 24th Annual General Meeting
03. IDLC Launches Investors’ Awareness Program in Sylhet
04. IDLC receives Commward Excellence in Communication 2009 organized by Bangladesh Brand Forum
05. IDLC opens SME booth at Gazipur
06. IDLC Securities Limited Inaugurates Its Gulshan Branch
01 02
03 04
05 06
34
07. IDLC inaugurates SME booth at Imamganj
08. IDLC gets ICMAB Best Corporate Performance Award 2008
09. IDLC organizes training program on anti money laundering and anti terrorism regulations
10. IDLC provides support to SEID Trust for under privileged children with intellectual and multiple disability
11. IDLC Distributes Blankets to the cold-hit poor in Bogra
12. IDLC in REHAB Fair
07 08
09 10
11 12
35
Consolidated Performance at
a glance during 2009
Total Assets grew Shareholders equity rose
by 30.79% by 48.52%
to reach Tk. 22,681 million to reach Tk. 2,393 million
Operating Income grew Profit Before Tax increased

by 62.25% by 79.80%
to reach Tk. 1,913 million to reach Tk. 1,273 million
Net Profit After Tax grew Net Asset Value per share
by 102.25% Tk. 797.70
to reach Tk. 822 million 2008 : Tk. 537.10
Return on equity rose Earnings per share reached

to 41.05% Tk. 273.96
2008 : 28.43% 2008 : Tk. 135.46
ROA improved Non-performing Loans ratio

to 4.11% improved to 3.62%
2008 : 2.50% 2008 : 4.50%
36
Key Operating and Financial Information
-Consolidated
(Tk. in Million)
2005 2006 2007 2008 2009 Growth (%)
Financial Performance
Lease and Term loans executed 2,564 2,875 2,977 3,411 3,750 9.90%
Housing finance disbursement 898 1,205 1,255 1,612 1,839 14.08%
Short term finance portfolio 355 326 213 336 317 -5.65%
Lease Finance 4,711 5,001 4,571 4,734 4,383 -7.41%
Housing finance assets 1,643 2,441 3,065 3,915 4,789 22.32%
Total assets 9,291 11,680 15,056 17,342 22,681 30.79%
Long term liabilities 6,989 8,115 11,103 12,115 18,792 55.11%
Term deposit balance 4,487 5,610 8,257 8,249 9,780 18.56%
Net current assets (238) (192) 1,401 1,559 1,003 -35.66%
Operational Performance
Operating Income 476 479 883 1,179 1,913 62.25%
Operating expenses 152 197 272 352 489 38.92%
Financial expenses 536 816 1,246 1,553 1,687 8.63%
General and administrative expenses 135 170 225 352 490 39.21%
Profit before tax 265 236 475 708 1,273 79.80%
Net profit after tax 153 157 303 406 822 102.25%
Average effective tax rate 42.31 33.41 36.08 42.57 35.46 -16.71%
Financial Ratios
Debt equity ratio (Times) 8.00 9.28 9.54 8.32 8.48 1.92%
Financial expenses coverage ratio (Times) 1.50 1.29 1.38 1.46 1.75 20.53%
Current ratio (Times) 1.6:1 0.96:1 1.2:1 1.21:1 1.04:1 -14.05%
Return on total assets (%) 1.96 1.57 2.37 2.50 4.11 64.40%
Non performing loan ratio (Times) 5.00 4.74 4.62 4.50 3.62 -19.56%
Return on shareholders’ equity (%) 19.00 17.45 27.59 28.43 41.05 44.39%
Earnings per share* (Tk.) 50.86 52.33 101.00 135.46 273.96 102.25%
Dividend per share (%) 37.50 38.33 40.00 35.00 110.00 214.29%
Price earnings ratio (Times) 9.90 7.60 10.02 16.89 13.52 -20.00%
Dividend yield (%) 3.72 4.89 2.63 1.53 2.97 94.11%
Dividend payout ratio (%) 73.73 73.24 39.60 25.83 40.15 55.40%
Equity Statistics
Number of share 1,500,000 1,500,000 2,000,000 2,500,000 3,000,000 20.00%
Year end market price per share (Tk) 1,007.00 784.00 1,519.00 2,289.00 3,703.00 61.77%
Net asset value per share (Tk.) 283.67 317.33 415.81 537.10 797.70 48.52%
Market capitalization 1,510.50 1,176.00 3,038.00 5,722.50 11,109.00 94.13%
Market value addition per share 723.33 466.67 1,103.19 1,751.90 2,905.30 65.84%
Shareholders’ equity 851.00 952.00 1,247.44 1,611.31 2,393.09 48.52%
* Prior years' number of shares have been adjusted to reflect bonus share issued in 2008
37
Value Added Statement
for the year ended December 31, 2009
Value added is the wealth created by IDLC through extending lease financing, short-term finance (factoring of accounts
receivable and work order financing), housing finance, merchant banking and corporate finance.
The Value Added Statement shows the total worth created and how it was distributed to meet certain obligation and the
portion retained for the continued operation and expansion of the Company.
Dec. 31, 2009 % Dec. 31, 2008 %

Taka Taka
Value added
Operating revenue 3,075,486,214 2,450,825,682

Cost of borrowing (1,619,153,280) (1,523,299,164)
1,456,332,934 927,526,518
Other income 90,629,521 63,109,295
1,546,962,455 990,635,813
Provisions (144,407,535) (119,835,553)
Operating expenses excluding staff costs and depreciation. (184,822,052) (118,845,059)
Value added 1,217,732,868 100% 751,955,201 100%
Distribution of value addition
To Employees as remuneration 214,488,126 18% 164,018,280 22%

To Government as taxes 444,104,054 36% 298,094,006 40%
To Shareholders as dividend ( both cash and stock) 330,000,000 27% 87,500,000 12%
Retained in the business for reinvestment 229,140,688 19% 202,342,915 27%
as capital and revenue reserve 188,530,325 16% 167,476,963 22%
as depreciation 40,610,363 3% 34,865,952 5%
1,217,732,868 100% 751,955,201 100%
Number of employees 253 207

Value added per employee 4,813,173 3,632,634
18 Employees 22
2008 27 Provider of capital 12
36 Government 40
19 Growth and expansion 27
38
Performance Indicators
Operating Income Profitability
Taka in million Taka in million
Profit before tax Profit after tax
1,913 1,273
1,179
822
708
883 62%
475 406
34%
479 265 303
476 236
84%
153 157
1%
2005 2006 2007 2008 2009 2005 2006 2007 2008 2009
Total Assets Shareholders' Equity

2,393
22,681
17,342
1,611
15,056 31%
49%
1,247
11,680
15%
9,291 952 29%
851
29%
31%
26%
12%
2005 2006 2007 2008 2009 2005 2006 2007 2008 2009
39
Return on total assets Return on Shareholders equity
Percentage Percentage
4.11
41.05
2.37 2.50 27.59 28.43

64%
1.96
1.57 19.00
5% 17.45 44%
3%
51%
58%
-20%
-8%
2005 2006 2007 2008 2009 2005 2006 2007 2008 2009
Debt Equity ratio Earning per share

Percentage Taka 273.96
9.28 9.54
8.32 8.48
8.00
2%
135.46
-13%
102%
101.00
3% 34%
50.86 52.33
16% 93%
2.89%
2005 2006 2007 2008 2009 2005 2006 2007 2008 2009
Market Capitalization 11,109 Dividend per share 110.00

Taka in million Taka
40.00
37.50 38.33
35.00
5,723
214%
94%
-13%
3,038
88%
4%
1,511 1,176 158%
2%
-22%
2005 2006 2007 2008 2009 2005 2006 2007 2008 2009
40
Book value Vs Market price of share Taka Price Earning ratio
Year end market price per share (Tk), Net asset value per share (Tk.) Times
16.89
3,703
13.52
10.02
9.90
-20%
2,289
7.60
1,519 68%
1,007
784 798 32%
537
416
284 317 -23%
2005 2006 2007 2008 2009 2005 2006 2007 2008 2009
Sectoral Exposure at the end of 2009
Information Technology
4%
Iron & Steel Paper & Paper Products
4% 2%
Household & Home

Appliances Apparels & Accessories
4% 10%
Others Food and Beverage
6% 9%
Agro Based Industry

4% Services
10%
Packaging
4%
Housing & Real Estate

7% Textiles
7%
Power & Energy

4% Transport
8%
Education
4% Pharmaceuticals
6%
Building & Construction Financial Services
4% 5%
41
Highlight as required by
Bangladesh Bank
Sl no. Particulars 2009 2008
1 Paid-up capital Taka in million 300 250

2 Total capital Taka in million 1,368 1,318
3 Surplus/(shortage) capital Taka in million 1,118 1,068
4 Total assets Taka in million 22,681 17,342
5 Total deposits Taka in million 10,360 8,779
6 Total loans, advances and leases Taka in million 19,461 15,558
7 Total contingent liabilities and commitments Taka in million 651 427
8 Loans to deposit ratio (total loans/total deposits) Times 1.88 1.77
9 % of classified loans against total loans % 3.24 3.67
10 Profit after tax and provision Taka in million 822 406
11 Classified loans, advances and leases during the year Taka in million 630 571
12 Provisions kept against classified loans, advances and leases Taka in million 109 101
13 Provision surplus / (deficit) Taka in million 220 195
14 Cost of fund (weighted average) % 10.44 12.63
15 Interest earning assets Taka in million 21,870 16,656
16 Non-interest earning assets Taka in million 811 685
17 Return on investment (ROI) % 4.57 2.87
18 Return on assets (ROA) % 4.11 2.50
19 Income from investment Taka in million 324.11 174.52
20 Operating profit per share Taka in million 474.41 275.82
21 Earnings per share Taka 273.96 135.46
22 Price earning ratio Times 13.52 16.89
2008
42
Business Environment and Its Likely
Impact on the Financial
Performance of IDLC
Some statements in this annual report such as IDLC's plans, anticipation, beliefs, expectations etc., are forward
looking. These statements involve uncertainties and actual achievement may differ from plan and expectation due
to changes in the business environment. Following are some major factors that may affect the business environ-
ment:
Change in country's general economic condition
Natural calamities and political disturbances
Change in commodities price level
Volatility in interest rate in the market
Volatility in capital market
Changes in Government policies, viz,

Changes in corporate income tax rate and VAT
Increase in provisioning requirements
Reducing margin ratio for merchant banking operation
Increase in statutory liquidity reserves and cash reserve requirements by Bangladesh Bank
Change in Bangladesh Bank's re-financing scheme program
Changes in capital market regulations
43
Chairman's Review
Dear Valued Shareholders,
I am delighted to welcome you all to the 25th Annual

General Meeting (AGM) of your Company, IDLC
Finance Limited. IDLC has successfully completed 24
years of uninterrupted operations and I thank you for
reposing so much trust and confidence in the Board
and Management Team within this highly competitive
financial services industry.
As the leasing industry is facing tremendous competi-

tion and challenges we believe that continued
diversification and increasing the fee based activities
are the only ways to survive, grow, be sustainable and
become the best performing and most innovative
financial solutions provider in the country while
maintaining high quality growth of shareholders’
wealth. Taking this into consideration, IDLC, in 2009,
continued to concentrate more on diversified
investments. Accordingly, the Company’s diversified
operations, specially the capital market operation,
posted a substantial growth during the year under
review.
The Bangladesh capital market, is in no way mature,

and has a lot of potential to develop and grow. In
order to realize such potential, we shall coordinate
our forces and hope that our merchant banking and
securities brokerage operation will continue to
contribute substantially to our profitability and
growth in the forthcoming years.
IDLC
IIDL
DLC FINANCE
DL FINA
NANNCE
NC
C
CEE LIMIT
LLIMITED
LIIMITTED
ED ANNUAL
ANN
A
ANNNU
NN UA
UAL
AL RE
AL RREPORT
EPPO
POR
OR
OR T 22009
009
4444
During 2009, IDLC earned a consolidated net profit of Taka 822 million compared to
previous year’s Taka 406 million showing a robust growth of 102.3%. Consolidated
earnings per share during the year under review were Taka 273.96 compared to
previous year’s Taka 135.46.
I believe that increased success could come IDLC’s way I would like to thank all our valued shareholders for the
if we venture into niche areas, pursuing untapped confidence and trust reposed in the Company. On
opportunities that are available and which would in behalf of the Board of Directors, I wish to pledge that
effect give us a strategic advantage over our major through prudent and carefully planned strategies, we
competitors. will continue to add value to shareholders’ wealth and
achieve IDLC’s vision and mission and reinforce its
The steady growth and development of business has values.
placed your financial institution in a strong position.
The asset size of the Company, at the year-end, stands My thanks to our loyal customers, who continued to be
at Taka 22.7 billion, marking a growth of 30.8% over the with us despite strong pressure from our competitors.
previous year. We continue to receive strong response
to our deposit mobilization efforts, and, at year-end, Finally, I would like to convey my appreciation to the
the balance of term deposits received by the Company fellow directors for their generous cooperation and
was Taka 9.8 billion which is 18.56% higher than support during the year. I also appreciate the hard
previous year. We have also plans for issuance of Zero work, dedication, sincerity and commitment the
Coupon bonds in 2009 which will help us reduce Company’s human resources have shown for its
funding costs and improve asset liability mismatch. development by launching innovative ideas, products
and services. I am proud to have this unique group of
During 2009, IDLC earned a consolidated net profit of highly qualified, competent and dedicated individuals
Taka 822 million compared to previous year’s Taka 406 to advance IDLC’s objectives and protect its interest.
million showing a robust growth of 102.3%. Consoli-
dated earnings per share during the year under review
were Taka 273.96 compared to previous year’s Taka
135.46.
IDLC continues with its prudential policy of building Anwarul Huq

adequate provisions for doubtful accounts and future Chairman
losses. We believe that this conservative provisioning
policy will result in lower provisioning expectations for
the future.
45
CEO & Managing Director’s
Review of Business
Environment
GLOBAL ECONOMY
The acute phase of financial crisis has passed and a

global economic recovery is under way. The recovery is
off to a stronger start than anticipated earlier but is
proceeding at different speeds in the various regions.
As per International Monetary Fund’s (IMF) statistics
World output grew by -0.8% in 2009 compared to 3.0%
in 2008. During 2009 advanced economies saw a
growth of -3.2% compared to 0.5% in 2008 while
Emerging and developing economies and developing
Asia saw a growth of 2.1% and 6.5%, respectively,
compared to 6.1% and 7.9% growth in 2008. Following
the biggest global downturn in recent history,
economic growth solidified and broadened to
advanced economies in the second half of 2009.
Confidence rebounded strongly on both the financial
and real fronts as extraordinary policy support
forestalled another great depression. Monetary and
Fiscal policies have provided major stimulus in
response to the deep downturn. Meanwhile, public
support of the financial sector has been crucial in
breaking the negative feedback loop between the
financial and real sectors.
As projected by IMF, output in the advanced econo-

mies is now expected to expand by 2 percent in 2010,
following a sharp decline in output in 2009. The
recovery in advanced economies is still expected to be
weak by historical standards, with real output
remaining below its pre-crisis level until late 2011.
IDLC
IDLLC FFINANCE
IN
INA
NANCE
N LLI
LIMITED
M ED
MIT D ANNUAL
AN
ANN UA
UA
ALL RE
RREPORT
EPPOR
OR T 22009
009
000
0
4466
CEO & Managing Director’s Review
The Bangladesh economy managed to avoid the first round shocks of the global
financial meltdown due to limited, regulated openness of its economy. The economy
was affected relatively lightly by the global economic slowdown with 5.9% real GDP
growth in 2008-2009, not far below the 6.2% growth achieved in 2007-2008
Moreover, high unemployment rates and public debt, as demand supported by growing workers’ remittance
well as not fully healed financial systems, and in some inflows and budgetary stimulus packages and higher
countries, weak household balance sheets are present- social safety net spending also contributed to the high
ing further challenges to the recovery in these econo- growth expectation of the industrial sector in response
mies. Growth in emerging and developing economies is to growing domestic demand. The growth performance
expected to rise to about 6 percent in 2010. Stronger of service sector, which accounts for about half of GDP,
economic frameworks and swift policy responses have is continued to be buoyant due to the recovery in
helped many emerging economies to cushion the private consumption, export and import growth.
impact of the unprecedented external shock and Booming trend in construction sector activities
quickly re-attract capital flows. China and India, the including residential and commercial housing activities
main contributor to the growth of the developing Asia will also create momentum in service sector growth.
are expected to grow by 10.0% and 7.7% in 2010
Growth of Real GDP
compared to 8.7% and 5.6%, respectively, in 2009.
7
STATE OF THE BANGLADESH ECONOMY 6
5
Percent
The Bangladesh economy managed to avoid the first 4

round shocks of the global financial meltdown due to 3
limited, regulated openness of its economy. The 2
financial sector in Bangladesh remained stable and 1
liquidity conditions remained normal. As the global 0
FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09*
financial crisis transformed into a global recession, the GDP growth Per capita GDP growth
economy was affected relatively lightly by the global Source: Bangladesh Bank (BB) quarterly report
economic slowdown with 5.9% real GDP growth in
2008-2009, not far below the 6.2% growth achieved in After bottoming out at 2.25% in June 2009, point to
2007-2008. Despite slowing growth, Bangladesh point CPI inflation has been increasing since July 2009,
performed better than most of the other Asian spurred by supply constraints in certain commodities
countries. Though industry sector adversely suffered the and an upturn in international commodity prices. Point
pass through effects of the global crisis through trade to point CPI inflation at the end of December 2009
and financial channels, agriculture sector sustained its increased to 8.51% as compared to 4.60% in September
growth momentum mainly due to favourable weather 2009. External supply shocks were the key drivers of
condition and stable political environment. inflation during this period and the volatility in interna-
tional commodity price induced similar pattern in
Driven by export oriented manufacturing, the industrial domestic prices. Excess liquidity in the banking system
sector, which represents around 17.1% of GDP, rose by because of lower investment demand and higher inflow
only 5.9% during the fiscal year 2008-2009 compared to of remittances from expatriates may also push up
previous year’s 6.8%. Agricultural output grew by 4.6% inflation rate, as projected by Bangladesh Bank.
in FY 2008-2009 against 3.2 % of FY 2007-2008. The The country’s foreign exchange reserves shot up to US$
growth prospect of real sector output in FY2009-2010 is 10.3 billion at the end of December 2009, which is the
expected to remain healthy based on the assumption highest ever in the history of Bangladesh. Increased
that the initial process of recovery of world economy flow of remittances, sizeable foreign assistance
from the impact of the financial crisis will speed up disbursements and normal import trend have contrib-
during the period. On the other hand, robust domestic uted to the rise in foreign exchange reserves.
47
The inflow of workers’ remittances maintained its uptrend during fiscal year 2008-2009
compared with the previous fiscal. Total remittances in FY 2008-2009 increased by
22.32% (from USD 7.91 billion to USD 9.68 billion)
Trends in Exports & Imports FINANCIAL SECTOR SCENARIO

6000
Credit flow to the private sector continued to plunge
5000 during 2009 as the private sector credit growth came
Million US Dollar
4000 down substantially. The credit flow to the private sector

3000 had been on the decline since October 2008 owing to
2000 slower level of investment in the backdrop of global
1000
economic recession. As a result, excess liquidity in the
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 banking system reached at Tk. 344 billion at the end of
November 2009, which was only Tk. 200 billion in
FY05 FY06 FY0 FY08 FY09 FY10
Export Import January 2009.
Source: Bangladesh Bank (BB) quarterly report
There was a significant increase in risk weighted capital

The inflow of workers’ remittances maintained its asset ratio (RWCAR) for all banks to 11.7% in June 2009
uptrend during fiscal year 2008-2009 compared with from 10% in December 2008 indicating positive change
the previous fiscal. Total remittances in FY 2008-2009 in the asset position of banks. For state owned commer-
increased by 22.32% (from USD 7.91 billion to USD 9.68 cial banks (SCBs) this ratio increased to 9.1% in June
billion). This high growth is attributed to a series of 2009 from 6.9% in December 2008 and for private
measures taken by Bangladesh Bank to stop illegal commercial banks this ratio increased to 12.0% from
transfer of money and encourage the expatriate 11.4%.
Bangladeshis to use formal banking channels to send
money to the country. Further, Bangladesh Bank has Ratio of Gross NPLs to Total Loans
established more exchange houses in different parts of 50
the World to expedite the flow of remittances. 45
40
35
Export earning during 2008-2009 rose by 11.9% 30
percent
compared to the previous financial year, despite a 25

20
substantial fall in prices of Bangladeshi products in the 15
global market. The growth can be attributed to the 10
positive performance by knitwear, woven garments, 5
0
home textiles, computer services and agricultural
Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1
products. However, export receipts during July –
December 2009 decreased by 6.2% compared to the FY05 FY06 FY07 FY08 FY09 FY10
same period of the previous year. NCBs Specialized Banks
PCBs Average Trend
However, maintaining export and remittance growth
despite global economic recession, keeping inflation The default loans in the banking sector showed a
within control, maintaining exchange rate stability, downward trend as the ratio of gross non performing
implementing regulatory reforms by Bangladesh Bank loan (NPL) to total loan to the banking sector reached at
in terms of improving risk and liquidity management
2008 10.36% as at the end of September 2009 from 10.8% at
practices, implementation of ADP up to a desired level the end of December 2008. According to BB statistics,
will be the major economic challenges for the coming default loans with state owned commercial banks
fiscal year. (SCBs) as of September 30, 2009 fell to 23.6% compared
48
The Bangladesh capital market experienced strong performance during 2009

with healthy growth in most relevant indicators. The rising trend of the DSE
General Index (DGEN) has continued since July 2009 and hit an all time
high of 5,828 on February 17, 2010
to 25.4% as on December 2008 which contributed anticipation of amendment in the insurance act pushed
significantly in decreasing the overall gross NPL ratio. the sector performance positive while NBFIs were in
The net NPL ratio of all banks also declined to 2.34% at safe territory due to the expectation of bonus and right
the end of September 2009 compared to 2.8% in shares as most of them require enhancement of capital
December 2008. base.
In an attempt to strengthen and consolidate the Trend in Market Capitalisation and DSE Index
financial base of non banking financial institutions 1600 4700
1400 4200
(NBFIs), Bangladesh Bank (BB) plans to implement Basel
1200 3700
II capital framework by the end of 2010 for all the NBFIs Billion Taka 3200
1000
now operating in the country. Under the framework, BB 2700
Index
800
2200
will determine the minimum capital requirement and 600
1700
the risk weighted assets for the NBFIs based on the 400 1200
overall sectoral performance. The BB has already 200 700
instructed NBFIs to increase their paid up capital to Tk. 0 200
Jun-05
Jun-06
Jun-07
Jun-08
Jun-09
Sep-05
Sep-06
Sep-07
Sep-08
Sep-09
Mar-05
Mar-06
Mar-08
Mar-09
Dec-05
Mar-07
Dec-06
Dec-07
Dec-08
Dec-09
500 million within December 2010. The earlier require-
ment for the minimum paid up capital along with
Market Capitalisation Index
reserves was Tk. 250 million.
CAPITAL MARKET SCENARIO Dhaka Stock Exchange (DSE) has launched the
over-the-counter (OTC) market -a separate trading floor
During 2008, the world went through its worst
to facilitate trading of the junk shares suspended by the
economic crisis since 1930, triggered by the financial
regulatory body in recent period. This will enable
tremors that jolted Wall Street giants and almost froze
investors, whose funds remained stuck-up with the
up the global credit system, the lifeblood of modern
suspension of the trading of the junk shares of listed
capitalism. In this context, it must be said the Bangla-
companies, to take part in daily trading.
desh capital market did exhibit marked resilience.
IDLC’s BUSINESS ACTIVITY- A SUCCESS STORY BASED
The Bangladesh capital market experienced strong
ON DIVERSIFICATION
performance during 2009 with healthy growth in most
relevant indicators. The rising trend of the DSE General At IDLC, we have always believed that diversification of
Index (DGEN) has continued since July 2009 and hit an products and services and revenue streams is the best
all time high of 5,828 on February 17, 2010. The index way of ensuring sustained financial performance.
increased by 765 point in a single day and crossed the Accordingly, we have continued to focus on multiple
psychological 4,000 points mark on November 16, 2009 business areas in 2009 and have taken measures to
when the largest company in Bangladesh Grameen encounter the uncertainty that may arise in business
Phone debuted on the bourses. The stock market activities from the aftermath of the global economic
capitalization reached a record high level at Tk. 2.366 crisis.
trillion on February 17, 2010, a 123% higher than end of
December 2008. Although DGEN started moving IDLC’s total investment portfolio as on December 31,
upward from July 2009 but record breaking rally began 2009 stood at Tk. 20,099 million which is 26.33% higher
in November 2009 mainly due to renewed interest in than the previous year. Out of the total portfolio, lease,
high cap banking sector riding on higher third quarter term loan, real estate finance and margin loans,
earnings compared to previous quarter and the respectively, represent 22.06%, 17.30%, 24.10%, and
anticipation of year end dividend declaration. The 29.50% of the total portfolio.
49
I would like to thank this Team for their sincerity, diligence and team-work in
2009 – all of which have, together, ensured the achievement of the company’s
annual goals and objectives
IDLC also maintains a well diversified investment The NBFI-sector experienced significant competition in
portfolio in the major sectors with highest allocation 2009 from the Banking industry with Banks using low
to services and apparel & accessories at 9.97% and cost of funds and the high liquidity prevailing in the
9.96%, respectively, followed by food and beverages market to enter the already crowded term loan market.
sector at 8.82%, transport at 7.72%, textiles at 7.02%, It is expected that interest rate competition will
housing & real Estate at 6.81%, pharmaceuticals at continue for the foreseeable future, particularly for
5.72%, financial services at 4.76%, iron & steel at 4.45%, traditional businesses such as leasing and term loans.
agro based industry at 4.38% and so on. This diversifi-
cation of investment portfolio helps us mitigate IDLC continues to be recognised as the leading
economic and sectoral risks. multi-product NBFI in the Bangladesh and is a
Portfolio Composition
continuous role-model for all competitors. The
Personal loan Margin loan company’s vision, diversified business strategy and
1% 29% strong compliance culture has helped overcome
competition and achieve exceptional results in 2009.
Investment in Lease finance
shares 22%
3% The strong results achieved in 2009 are mainly the
Car loan result of exceptional efforts put in by IDLC staff
2% members – the IDLC-Team. I would like to thank this
Short term Team for their sincerity, diligence and team-work in
finance 2009 – all of which have, together, ensured the
2% Real estate
finance achievement of the company’s annual goals and
Term finance 24% objectives.
17 %
OPERATIONAL PERFORMANCE OF IDLC DURING 2009

My sincere note of gratitude also goes out to our
IDLC has completed a very successful year in 2009, distinguished Chairman and honourable members of
despite an initial setback due to political uncertainty the Board of Directors for their constant guidance,
and global economic slowdown. There was a marked encouragement and empowerment.
increase in business confidence among customers
during the remainder of the year.
IDLC’s consolidated operating result during 2009 is

summarized below:
Selim R. F. Hussain
(Tk. in millions)
2008 2009 Growth %
Operating income 1,179 1,913 62.25
Operating expenses 352 489 38.92
Total operating
2008 profit 827 1,424 72.19
Profit before income tax 708 1,273 79.80
Net profit after income tax 406 822 102.25
Earnings per share 135 274 102.25
50
Directors’ Report to the Shareholders
DEAR SHAREHOLDERS, locations of the country during the rest of 2010.
We believe that setting up of these branches will help
The Board of Directors of IDLC Finance Limited is us to generate business volumes from SME markets
pleased to present the audited financial statements of which are mostly untapped by us, establish our
the Company for the year ended December 31, 2009, permanent presence in different areas, give faster
Auditors’ Report thereon along with economic service delivery and cross selling opportunities of all
overview, market status, Company’s performance, and our other financial products and services. Setting up of
other matters in terms of Companies Act, 1994, these branches, we believe, will also broaden our
Guidelines issued by Securities and Exchange Commis- deposit mobilization effort.
sion and Bangladesh Bank and Bangladesh Accounting
Standards: IDLC’s fully owned subsidiary, IDLC Securities Limited
(IDLCSL) has also opened a branch at Gulshan and
OPERATIONAL PERFORMANCE OF IDLC Sylhet and plans are afoot to open five more branches
DURING 2009 in 2010.
The Company’s diversified operations and subsidiary IDLC’s consolidated operating result during 2009 along
saw a hefty growth during the year 2009. SMEs in with budget for 2009 is summarized below:
Bangladesh have been making a significant contribu-
tion to the country’s economy. However, there is large (Tk. in millions)
gap between their needs and access to reasonably Actual in Budget for Achievement
priced funds. Under this backdrop, we have taken an 2009 2009 as a %
initiative to further increase investment in this of Budget
segment, in a structured manner to cater to the Operating income 1,913 1,248 153.29%
financing needs to small and medium sized business Operating expenses 489 427 114.52%
enterprises. IDLC’s SME focused branches at Bogra has
Total operating profit 1,424 858 166.0%
strengthened its financing activities in this growing
sector in the northern region of the country. Profit before income tax 1,273 720 176.8%
Net profit after income tax 822 461 178.3%
As a part of business expansion, during 2009, we Earnings per share 274 154 177.9%
opened branch at Sylhet which, we believe, will
contribute significantly to the management’s effort for
increasing SME business and deposit mobilization in BUSINESS REVIEW
that region. We have also opened two SME Booths at
Imamganz in old Dhaka and Gazipur during 2009 to Lease and Term Loan
increase our business and provide better services to
our SME clients at that region. Moreover, considering Amid intense and increasing competition amongst the
the business potential for SME financing, we have also financial institutions as well as the commercial banks,
opened two SME focused branches at Savar and IDLC maintained its leadership position in the market.
Narayanganj in February, 2010 and have also plan to During 2009, your Company executed Tk. 3,750 million
set up five more SME Focused Branches in different in lease and term loans compared to previous year’s
51
Directors’ Report
Lease finance Term Finance

3,437
5,400 1,100 3,500 500
3,000 2,781
5,200 5,001 1,000 459 400
5,000 900 2,500 2,239 401
4,711 4,734 2,000 300
4,800 800 1,542 312
4,571
4,600 700 1,500 200
4,383 956
4, 400 600 1,000 166
622 699 649 609 70 100
4,200 563 500 500
4, 000 400 - -
2005 2006 2007 2008 2009 2005 2006 2007 2008 2009
Portfolio Revenue Portfolio Revenue
Tk. 3,411 million, showing a growth of 10%. The lease slowly see its own growth with the passage of time.
and term loans portfolio at the end of the year saw a
marginal growth of 4.0% over the previous year. This Capital Market Operation
year we have concentrated more on acquiring better
quality financial assets rather than volume achieve- During 2009, IDLC’s Merchant Banking Operation
ment for its own sake. The Company expects to earned Tk 814.5 million in revenues, which is a hefty
continue its drive to diversify its client base, maintain 87.2% higher than the previous year. The operation
portfolio quality and improve service quality, which, has earned an operating profit of Tk. 189.54 million,
we believe, will enable us to maintain a sustainable compared to previous year’s Tk. 91.67 million, marking
growth in this operation. a robust growth of 106.8%. We hope that this opera-
tion will earn increasing revenue in the years ahead
Housing Finance and will take much stronger position in the market. At
the end of December 2009, total portfolio value at cost
Although the real estate and housing industry was Tk. 11,455 million (Tk. 12,637 million at the
experienced a setback during early 2009 with fall in market price) and balance of margin loan was Tk. 5,862
sales due to the uncertainty in the business and trade million. During the year this operation has also
circles, IDLC’s housing finance operation witnessed a successfully managed the issue management of
reasonable growth of 14% in disbursements. Revenue Marico Bangladesh Limited.
of the operation also witnessed growth of 22.46%. The
housing finance assets as at the close of the year stood Moreover, Merchant banking Operation earned Tk. 201
at Tk. 4,789 million, 22.32% higher than the previous million in capital gains during 2009 through trading of
year. We believe that this operation will continue to securities in the secondary market.
grow with increasing retail customer base in the years
ahead. Treasury Operations
Car Loans Our drive to reduce funding costs, diversify funding

sources and diminish reliance on conventional sources
During the year under report, your Company continued to witness significant progress in 2009.
disbursed Tk. 148 million against previous year’s
disbursement of Tk. 125 million. This operation has, Deposit has been our prime funding source for the last
however, earned revenue of Tk. 56.1 million during the couple of years. As of December 31, 2009, IDLC’s total
period, which is 1.03% higher than previous year. term deposit amount was Tk. 9.78 billion, which is one
of the highest among all the FIs and 18.6% higher than
This business is facing enormous competition from the previous year. Deposits contribute to almost 60.5%
commercial banks, which are able to offer lower rates of IDLC’s funding portfolio and 57% of these deposits
and spend large amounts of money on aggressive
2008 are from retail sources.
marketing campaigns in conjunction with a large sales
force and branch network. However, we continue to Our drive to lessen reliance on conventional sources
operate in the IDLC trademark manner and have our like credit lines from commercial banks has witnessed a
own market niche to serve which, we believe, will major stride in the year 2009. Term loans from banks
52
Directors’ Report
Housing Finance Funding MIX

Taka in million Percentages Short term and
4,789
700 call loan Refundable
6,000
deposit
5,000 3,915 600 13 %
656 3%
4,000 3,065 500
536 Unsecured
3,000 2,441 400 long term loan
434
2,000 1,643 300 12%
304
1,000 200
198
- 100
2005 2006 2007 2008 2009 Secured long Term Deposit
term loan 12% 60 %
Portfolio Revenue
consisted of 10.22% of total funding basket at the end Subsidiary Operations

of year 2009 in comparison to 13.74% that of year
2008. IDLC Securities Limited
Sluggish credit growth, increase in foreign remittance IDLC Securities Limited (IDLCSL), a wholly owned
and decrease in commodity price globally, caused subsidiary of IDLC, started its operation in September
mounting excess liquidity in the financial sector, which 2006. The main object of the company is to act as
resulted in substantial decline in overall interest rates member of stock exchanges, the central depository
during the year 2009. system (CDS) and carry out the business of broker,
jobbers or dealers in stocks, shares, securities, etc,.
Considering the prevailing excess liquidity in the
financial sector, we shifted our focus to avail fund from IDLCSL is a corporate member of both the Dhaka Stock
short-term sources. Under the declining interest rate Exchange Limited and Chittagong Stock Exchange
scenario, we were very active to use cheaper short- Limited and a full service Depository Participant of the
term funding sources, which helped us to reduce our Central Depository of Bangladesh Limited. It has
financial expenses substantially. As a result, our cost of already become one of the top four brokerage
fund decreased by more than 2.0% during the year. companies in the country with IDLC’s unique branding,
market image and reputation contributing signifi-
In year 2010, as we expect rise in interest rate, we are cantly to both institutional and personal customer
planning to issue longer terms bonds and avail other accretion.
long term funding sources, which we believe, will
boost our efforts to lessen asset-liability mismatch, During 2009, IDLCSL earned a net profit of Tk. 353.35
diversify our funding basket and reduce overall million. We expect that this enterprise will take strong
funding cost. position in the market in future and continue to
contribute significantly to the profitability of your
We are actively participating in Small and Medium company.
Enterprise Refinancing Schemes of Bangladesh Bank,
funded by IDA and ADB. We have regularly submitted I.Cons Limited
projects against these schemes and received refinanc-
ing of BDT 1,010.93 million till December 2009. We are I.Cons Limited, a wholly owned subsidiary Company of
also receiving funds against our submitted projects IDLC, was incorporated on March 9, 2004 as a private
under Bangladesh Bank’s Home Loan Refinancing limited company under Companies Act, 1994 with paid
Scheme. Till December 2009, we received refinancing up share capital of Tk. 1,000,000 which had been
of BDT 525.83 million under the scheme. providing IT services to its sister concerns and affiliates
as well as to some other financial institutions in the
We have also submitted eligible project under industry.
Investment Promotion and Financing Facility (IPFF)
jointly initiated by IDA of World Bank Group and As the company’s performance was not up to mark
Government of Bangladesh and received fund for BDT and considering the performance of IT sector in the
80.0 million. country, the company was wound up voluntarily with
53
Directors’ Report
Employment category Service analysis Age analysis

10.28%
4.35%
3%
4.74%
26.09%
2%
5.14%
6. 7
23%
2.37%
49% 0.40%
45.45%
25% 38.74 % 55.73%
Core management staff Management staff Less than 2years 2- 5 years 6-10 years 23 - 30 years 31 - 35 years 36 - 40 years
Executive officer Support stuff 11-15 years Over 15 41 - 45 years 46 - 50 years Over 51 years
effect from November 18, 2009. The assets and resources development as well as meet organizational
liabilities of the Company were distributed to its needs to face future challenges. As part of IDLC’s
shareholders in proportion to the shareholding as per Human Resource Development Program, a large
the liquidator's winding up accounts. On liquidation, number of employees were sent to different training
all the assets of I.Cons Limited were taken over by IDLC programs, which included both managerial develop-
at book value and the proportionate residual balance ment and technical modules.
amounting to Tk. 795,908 was received by IDLC as a
holder of 9,999 shares, out of total 10,000 shares of During the year 2009, 50 employees were trained
I.Cons Limited. locally in 20 training courses while 26 employees were
sent on overseas training programs spread over 13
HUMAN CAPITAL different modules. In addition, a significant number of
in-house training courses were arranged on money
IDLC continued to implement appropriate human laundering and other managerial development
resource management policies and practices to aspects.
develop its employees, and to ensure their optimum
contribution towards the achievement of corporate Compensation and Reward
goals. At IDLC, we believe that our Human Resources
(HR) give the organization a significant competitive IDLC provides its employees with a competitive
edge in terms of knowledge and experience. Keeping compensation package. The Company also ensures
this in mind, we continued our policy of recruiting the performance based reward system and makes
best people and implementing programs to develop performance evaluation, once in July to reflect annual
and retain high quality human resources. increments, and, another in December to award
performance based bonus. A detailed compensation
Ethical Standards survey is carried out by independent consultant to
assess and evaluate the current pay level of IDLC vis a
At IDLC, we believe in the importance of adherence to vis the market.
the highest standards of ethical conduct as a key to
business success and make every effort to maintain full Employee Health & Safety
compliance with laws, rules and regulations that
govern our business. We have a set of Code of Ethics Employee health and safety are our main priorities. The
and business conduct for our employees, who are Company provides hospitalization insurance coverage
required to read and sign it every year, as a sign of to ensure medical security of its staff. In addition, the
reiteration and commitment to the principles Company has group life insurance scheme for its
enshrined in it. permanent staff to cover the unforeseen risk of death.
Training
2008 Staff Strength
While maintaining high recruitment standards, IDLC The staff strength of the Company as on December 31,
also provides need based internal and external 2009 and for the previous two years is summarized
training to its staff, with a view to encourage human below:
54
Directors’ Report
Short term finance Car loan

400 60 400 80
355 332 332 345
326 336 317 70
50 350
300 300 60
40 237
213 250 56 50
50 55 40
200 30 200 44
42 42 30
37 20 150 101
32
100 100 25 20
10 10
50 6
- - - -
2005 2006 2007 2008 2009 2005 2006 2007 2008 2009
Portfolio Revenue Portfolio Revenue
Policy for your Company. IDLC is one of the very few

2007 2008 2009 organizations that have embraced ICT as the key to
Core management staff 10 11 9 achieving excellence in its various aspects of opera-
Management staff 32 54 60 tions.
Executive officers 48 43 49
RISK MANAGEMENT
Support staff 78 99 135
Total 168 207 253 Risk is an integral part of financing business. IDLC
always concentrates on delivering high value to its
Non-Discriminatory Policy and Equal Opportunities stakeholders through appropriate trade off between
Employer risk and return. A well structured and proactive risk
management system is in place within the Company to
IDLC always respects employee’s right and dignity. We address risks relating to credit, market, liquidity and
always practice equal treatment to all existing and operations. The Company has different committees for
potential employees irrespective of their race, religion, risk management. The Credit Evaluation Committee
age and gender. It is your Company’s policy to ensure (CEC) and Asset and Liability Committee (ALCO)
equal opportunity in recruitment, selection, promo- regularly meet to review the market, credit and
tion, development, training and rewards. liquidity related factors and recommend and imple-
ment appropriate measures to counter associated
INFORMATION TECHNOLOGY risks. Appropriate internal control measures are also in
place to address operational risks.
IDLC has highly experienced and trained professionals
working on maintaining and developing the An independent Credit Risk Department is in place, at
Company’s IT infrastructure. The software professionals IDLC, to scrutinize projects from a risk-weighted point
are constantly innovating and writing in-house of view and assist the management in creating a high
programs to meet the needs of the company’s ever quality credit portfolio and maximize returns from risk
increasing and diversified product and services assets. IDLC has also an Operational Risk Management
industry. Department in place to address operational risk and to
frame and implement policies to encounter such risks.
The Company’s branch and office network now
embraces sixteen locations, and the IT Division has A summary of business risks facing the Company and
successfully implemented a Wide Area Network (WAN) steps taken to effectively manage and mitigate such
to connect all of the premises on real-time basis, risks are stated in a separate statement on risk
thereby, providing seamless connectivity and prompt management in page number 23.
customer services.
FUTURE PROSPECTS
Information & Communication technology (ICT) has
become indispensable for financial institutions in Despite constantly increasing competition in the
ensuring smooth operation and providing efficient market with entering into leasing, housing finance,
service. Your Company has recognized this fact and the merchant banking and brokerage business by
Board of Directors have adopted a comprehensive ICT commercial banks, we will put in strenuous efforts to
55
Directors’ Report
Merchant bank revenue Market value addition

Taka in million Taka per share
900 814 3,500 2,905
800 3,000
700
2,500
600
1,752
500 435 2,000
400 1,500 1,103
300 235
1,000 723
200 467
100 32 53 500
- 0
2005 2006 2007 2008 2009
2005 2006 2007 2008 2009
achieve the business volumes targeted by all the five new branches during 2010.
departments as well as realise our corporate objec-
tives. Innovative and relentless marketing drive will With all these expansion and diversification, IDLC aims
continue to attain quality asset growth, while to be a truly specialized financial institution focusing
maintaining and improving existing portfolio quality. on SME financing and investment banking operation
while maintaining its business share of corporate
IDLC has succeeded immensely in its diversification financing.
efforts resulting in growth in income steams from an
array of business segments. Our focus in 2009 and in CONTRIBUTION TO NATIONAL ECONOMY
the near future will be in further growing of our SME
business through expansion of branch network across IDLC Finance Limited commenced its journey in 1985
the country and focusing more SME businesses in all as the first leasing company in the country. With its
existing branches. We shall also take extra efforts to pioneering role, IDLC has made the lease financing
offer more loans to women entrepreneurs. popular in the country and developed the leasing
industry, which has a total investment more than Tk.
The Corporate Division has been affected somewhat 127 billion now, as a vibrant financial intermediary in
by the change in depreciation policy by the Govern- the medium term financing segment in the country.
ment and also by the reduction of the lending rate by IDLC is continuously increasing its focus on financing
the commercial banks for corporate lending. Plans are to Small and Medium Enterprises (SMEs), the engine
afoot to explore the possibility of extending operating for growth for any developing economy.
lease as a new product to counter the loss of business
in the financial lease segment, our mainstay since During the year under report, the Company has
inception of the company. deposited Tk. 360 million to the Government Exche-
quer as corporate income tax, withholding tax and VAT.
IDLC’s Merchant Banking Division has performed
exceedingly well in 2009. We shall continue our efforts CORPORATE AND FINANCIAL REPORTING
to increase the customer base, both in the individual FRAMEWORK
and institutional segments. We shall endeavor to
encourage our customers to get them listed on the The Directors, in accordance with SEC Notification No.
bourses, thereby bringing in quality scrips into our SEC/CMRRCD/2006-158/Admin/02-08 dated February
burgeoning capital market. As the financial institutions 20, 2006; confirm compliance with the financial
are facing immense competition, the Company will try reporting framework for the following:
to concentrate more on capital market operation and
fee generating activity and diversify its mode of a) The financial statements prepared by the
investment. management of IDLC, present fairly its state of
2008 affairs, the results of its operations, cash flows and
IDLC Securities limited (IDLCSL), a fully owned changes in equity;
subsidiary engaged in securities brokerage business, is
expecting to increase its client base and revenue with b) Proper books and accounts of the Company have
superior quality services to its customers by opening been maintained;
56
Directors’ Report
Term deposits balance Lease and term loan executed

12,000 4,000 3,750
9,780 3,500 3,411
10,000 2,875 2,977
8,257 8,249 3,000 2,564
8,000 2,500
5,610
6,000 2,000
4,487
1,500
4,000
1,000
2,000 500
0 0
2005 2006 2007 2008 2009 2005 2006 2007 2008 2009
c) Appropriate accounting policies have been by the Directors are summarized in Annexure II of this
consistently applied except for the changes report.
disclosed in the financial statements in prepara-
tion of financial statements and accounting PROPOSED DIVIDEND AND APPROPRIATION OF PROFIT
estimates are based on reasonable and prudent
judgement The financial results of and recommended appropria-
tions for the year 2009 are summarized below:
d) International Accounting Standards, as applicable
in Bangladesh, have been followed in preparation (Tk in million)
of financial statements and any departure there Profit after tax 518.53
from has been adequately disclosed Retained earnings brought forward
after payment of dividend for 2008 14.43
e) The system of internal control is sound in design
and has been effectively implemented and Profit available for appropriation 532.96
monitored;
Directors’ recommendation for appropriation
Stock Dividend @ 100% 300.00
f) There are no significant doubts upon the
(one share for every one share held)
Company’s ability to continue as a going concern ;
Cash Dividend @ 10% 30.00
KEY OPERATING AND FINANCIAL DATA (per share on 3,000,000 ordinary shares)
Transfer to Statutory Reserve 105.00
Key operating and financial information of last five
years and reasons of significant deviations as per Transfer to General Reserve 90.00
requirement of SEC Notification No. Balance profit carried forward 7.96
SEC/CMRRCD/2006-158/Admin/02-08 dated February
20, 2006, are presented in the page number 37 as Key DIRECTORS
Operating and Financial information.
As per Article- 116 of the Articles of Association of the
Highlights of overall operation of the Company as per Company, the following three Directors will retire from
DFIM cirlular No. 11 dated December 23, 2009 are also the office of the Company in the 25th Annual General
shown in page number 42. Meeting:
SHAREHOLDING PATTERN - Mr. Rubel Aziz, nominated by

The City Bank Limited
Shareholding patterns of the Company as at the end of
the year 2009 is shown in Annexure I of this report. - Mr. Aziz Al Kaiser, nominated by
BOARD MEETINGS AND ATTENDANCE BY THE
- Mr. K. Mahmud Satter, nominated by
DIRTECTORS
During the year ended on December 31, 2009 at total
of ten (10) Board Meetings were held and attendance They are also eligible for re-election.
57
Directors’ Report
Cost Income ratio Current ratio

Percentage Times
45% 41.13 1.8 1.6
40% 1.6
35% 31.93 30.80 1.4 1.2 1.21
29.86
30% 25.56 1.2 1.04
0.96
25% 1
20% 0.8
15% 0.6
10% 0.4
5% 0.2
0% 0
2005 2006 2007 2008 2009 2005 2006 2007 2008 2009
APPOINTMENT OF CEO & MANAGING DIRECTOR 3.0 billion, in phases, subject to the approval of the
shareholders at the Annual General Meeting.
The Employment Contract with Mr. Anis A. Khan, ex
CEO and Managing Director of the Company expired STATUS OF COMPLIANCE
on March 31, 2009, which was not renewed as desired
by Mr. Khan. Subsequently, the Board at its 168th Status of compliance with the conditions imposed by
meeting held on November 10, 2009 decided to the Securities and Exchange Commission’s Notification
appoint Mr. Selim Reza Farhad Hussain who was No. SEC/CMRRCD/2006-158/Admin/02-08 dated
working as Head of Finance, Consumer Banking, February 20, 2006 is enclosed as Annexure III.
Standard Chartered Bank, India, as the CEO and
Managing Director of the Company with effect from
January 1, 2010 for a period of three years. The On behalf of the Board of Directors,
appointment was subsequently approved by Bangla-
desh Bank. As per requirement of Section 109 of the
Companies Act, 1994, consent of the shareholders in
General Meeting is required for appointment of
Managing Director. Anwarul Huq
Chairman
AUDITORS
The Auditors of the Company, M/S Rahman Rahman

Huq, Chartered Accountants, being eligible, offered
themselves for re-appointment.
ISSUANCE OF BOND
In line with the Company's strategy to diversify the

funding sources and reducing asset liability mismatch,
IDLC was one of the first financial institutions to issue
bonds and debentures through private placement.
Accordingly, your Company is proposing to issue
Bonds/Secured Zero Coupon Bonds to the extent of Tk.
2008
58
Directors’ Report
ANNEXURE-I
Pattern of Shareholdings as on December 31, 2009
Particulars No. Share holding % Remarks
Shares Held by :
Subsidiary and other related parties Nil
Directors, their spouses and minor children:
Spouse of Mr. Anwarul Huq 100 0.0033%
Mr. A.K.M. Shaheed Reza 1,000 0.033%
Chief Executive Officer (CEO) and his spouse and minor children Nil
Chief Financial Officer (CFO) and his spouse and minor children Nil
Company Secretary (CS) and his
spouse and minor children Nil
Head of Internal Audit (HIA) and his spouse and minor children Nil
Executives (Top five person other than CEO,CFO,CS,HIA):
1. Arif Khan Nil

2. M. Jamal Uddin Nil
3. Shaikh Kamruzzaman Nil
4. Mir Tariquzzaman Nil
5. Bilquis Jahan 79 0.0026%
Shareholders holding 10% or more voting right:
The City Bank Limited 851,735 28.39
Total 852,814 28.43%
59
Directors’ Report
ANNEXURE-II
Attendance by the Directors at the Board Meeting during the year 2009
Total
meetings
Meeting % of
Name of Director held during Remarks
attended attendance
individual’s
tenure
Mr. Anwarul Huq 10 10 100
Mr. Habibur Rahman Mollah 10 09 90
Mr. Rubel Aziz 10 06 60
Mr. Yongbok Jo 10 10 100
Mr. Md. Shafiqul Azam 03 03 100 Resigned on February 25, 2009
Mr. Md. Rezaul Karim 07 06 85.7 Appointed in place of Mr. Md. Shafiqul Azam
Mr. Lee Dong Jue 02 01 50 Resigned at on February 25, 2009
Mr. Aziz Al Kaiser 08 08 100 Appointed in place of Mr. Lee Dong Jue
Mr. Choong-Sun Park 02 01 50 Resigned on February 25, 2009
Mr. K. Mahmood Sattar 08 07 87.5 Appointed in place of Mr. Choong Sun Park
Mr. Ahmed Rajeeb Samdani 03 01 33.33 Resigned on March 30, 2009
Ms. Meherun Haque 07 05 71.5 Appointed in place of Mr. Ahmed Rajeeb Samdani
Mr. A.K.M. Shahidul Haque 03 02 66.67 Resigned on May 27, 2009
Mr. A.K.M. Shaheed Reza 07 07 100 Appointed in place of Mr. A.K.M. Shahidul Haque
Mr. Monoweruddin Ahmed 09 07 77.78 Resigned on December 27, 2009
Leave of absence was granted to Directors who could not attend some of the Board Meetings.
Ms. Jeong Won Byun acted as Alternate Director for Mr. Lee Dong Jue and Mr. Choong-Sun Park as per Articles of
Association of the Company.
2008
60
Directors’ Report
ANNEXURE-III
Status of compliance with the conditions imposed by the Securities and Exchange Commission’s Notifica-
tion No. SEC/CMRRCD/2006-158/Admin/02-08 dated February 20, 2006
Condition Title Compliance Explanation for non compliance

No. Status with the condition
1.1 Board’s Size: Board members should Complied
not be less than 5(Five) and more
than 20 (Twenty)
1.2(i) Appointment of Independent Director: Complied
At least 1/10th
1.3 Chairman and Chief Executive be Complied
diff erent person
1.4 Directors report to Shareholders to
include declarations on :
1.4(a) Fairness of financial Statements Complied
1.4(b ) Maintenance of proper books of Complied
accounts
1.4(c) Adaptation and consistent application Complied
of appropriate accounting
policies and estimates
1.4(d) Compliance with Bangladesh Complied
Accounting Standards (BAS)
1.4(e) Soundness and efficiency of Internal Complied
Control System
1.4(f ) A bility of the company to continue Complied
as Going Concern
1.4(g) Significant deviation in operating Complied
results from last year
1.4(h) Presentation of key operating and Complied
financial data for at least last three
years
1.4(i) Declaration of Dividend Complied
1.4( j) Details of Board Meeting and Complied
attendance by Directors
1.4(k) Shareholding Pattern Complied
2.1 Appointment of CFO, Head of Internal As appointing a Company Secretary
Audit and Company Secretary is not cost effective considering the
and defining of their respective activity of Company Secretary, CFO
2008
roles, responsibilities and duties also acts as Company Secretary
2.2 Attendance of CFO and the company Complied
Secretary at Board of Directors
meeting
61
Directors’ Report
Condition Title Compliance Explanation for non compliance

No. Status with the condition
3.00 Audit Committee:

3.1(i) Formation of Committee Complied
3.1(ii) Constitution of Committee with Complied
Board members including one
Independent Director
3.1(iii) Filling of Casual Vacancy in the Complied
Audit Committee
3.2(i) Selection of the Chairman of the Complied
Audit Committee
3.2(ii) Professional Qualification and Complied
experience of the Chairman of the
Audit Committee
3.3.1(i) Reporting on the activities of the Complied
Audit Committee to the Board
3.3.1(ii) Reporting of Conflict of Interest to Not found
ound
(a) the Board of Directors
3.3.1(ii) Reporting of any fraud or irregularity Not occured
(b) or material defect in the internal
control system to the Board of
Directors
3.3.1(ii) Reporting of non-compliance of Not found
(c) laws to the Board of Directors
3.3.1(ii) Reporting of any other matter to Not found
(d) the Board of Directors
3.3.2 Reporting to the SEC by the Not required
Committee
3.4 Reporting of activities to the Complied
Shareholders and General Investors
4.00 External/Statutory Auditors:
4.00(i) Non-engagement in appraisal or Complied
valuation
4.00(ii) Non-engagement in designing of Complied
Financial Information System
4.00(iii) Non-engagement in Book-Keeping Complied
4.00(iv) Non-engagement in Broker-dealer Complied
service
4.00(v) Non-engagement in Actuarial Complied
2008
Services
4.00(vi) Non-engagement in Internal Audit Complied
4.00(vii) Non-engagement in any other Complied
services
62
Auditors’ Report and
Financial Statements of
Directors’ Report
Auditors' Report to the Shareholders of

We have audited the accompanying balance sheet of IDLC Finance Limited (“the Company”) as at 31 December
2009 and the related profit and loss account, cash flow statement, statement of changes in equity and notes to the
financial statements for the year then ended. We have also audited the attached consolidated balance sheet, profit
and loss account, cash flow statement, statement of changes in equity and notes to the consolidated financial
statements of IDLC Finance Limited and its subsidiary as at 31 December 2009. The financial statements of the
subsidiary, IDLC Securities Limited, is not audited by us, as at 31 December 2009. The preparation of these financial
statements is the responsibility of the Company’s management. Our responsibility is to express an opinion on
these financial statements based on our audit.
Scope
We conducted our audit in accordance with Bangladesh Standards on Auditing (BSA). Those standards require that
we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclo-
sures in the financial statements. An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial statement presentation. We believe
that our audit provides a reasonable basis for our opinion.
The financial statements of the Company's subsidiary IDLC Securities Limited, reflect total assets of Tk.
1,184,971,898 as at 31 December 2009 and total revenue of Tk. 483,441,639 for the year then ended. These
financial statements have been audited by other auditors whose reports have been furnished to us and our
opinion, in so far as it relates to the amounts included in respect of the Company's subsidiary, is based solely on
the reports of the other auditors.
Opinion
In our opinion, the financial statements of the Company along with the notes thereon and the consolidated
financial statements, drawn up on the consideration of the separate audit reports of the subsidiary as at 31 Decem-
ber 2009, prepared in accordance with Bangladesh Accounting Standards (BAS) and Bangladesh Financial Report-
ing Standards (BFRS), give a true and fair view of the state of the Company’s affairs and of its subsidiary, and of the
results of their operations and cash flows for the year then ended and comply with the Companies Act 1994, the
Financial Institutions Act 1993, the Securities and Exchange Rules 1987, the rules and regulations issued by the
Bangladesh Bank and other applicable laws and regulations.
64
We also report that
a) we have obtained all the information and explanations which to the best of our knowledge and belief were
necessary for the purposes of our audit and made due verification thereof;
b) in our opinion, proper books of account as required by law have been kept by the Company so far as it appeared
from our examination of these books and proper returns adequate for the purposes of our audit have been
received from branches not visited by us;
c) the Company's balance sheet and profit and loss account dealt with by the report are in agreement with the
books of account and returns;
d) the expenditure incurred was for the purposes of the Company's operation;
e) the financial position of the Company at 31 December 2009 and the profit for the year then ended have been
properly reflected in the financial statements, and the financial statements have been prepared in accordance
with generally accepted accounting principles;
f ) the financial statements have been drawn up in conformity with the Financial Institutions Act 1993 and in
accordance with the accounting rules and regulations issued by Bangladesh Bank to the extent applicable to
the Company;
g) adequate provisions have been made for leases and advances which are, in our opinion, doubtful of recovery;
h) the Company has followed the instructions issued by Bangladesh Bank in matters of lease/advance classifica-
tion, provisioning and suspension of interest;
i) the records and statements submitted by the branches have been properly maintained and consolidated in the
financial statements;
j) the information and explanations required by us have been received and found satisfactory;
k) the Company has complied with relevant laws pertaining to reserves and maintenance of liquid assets.
Dhaka, 16 March 2010
65
Balance Sheet
as at December 31, 2009
2009 2008
Note
Taka Taka
PROPERTY AND ASSETS
Cash 3
In hand 3.1 66,000 51,000
Balance with Bangladesh Bank 3.2 225,155,458 213,666,706
225,221,458 213,717,706
Balance with other banks and financial institutions in Bangladesh 4 912,152,616 201,278,108
Money at call and short notice - -

Investments 5
Government - -
Others 532,831,979 350,565,498
532,831,979 350,565,498
Loans, advances and leases 6 19,438,284,486 15,557,896,352
Fixed assets including land, building, furniture and fixtures 7 188,541,232 167,778,916
Other assets 8 318,228,163 421,436,571
Total Assets 21,615,259,934 16,912,673,151
LIABILITIES AND CAPITAL
Liabilities
Borrowings from other banks and financial institutions 9 6,029,180,391 4,145,174,744
Deposits and other accounts 10
Term deposits 9,779,933,274 8,248,679,428
Other deposits 579,835,183 530,686,903
10,359,768,457 8,779,366,331
Other liabilities 11 3,325,596,572 2,568,447,887
Total liabilities 19,714,545,420 15,492,988,962
Capital / Shareholders' equity
Paid-up capital 12 300,000,000 250,000,000
Share premium 13 3,750,000 3,750,000
Statutory reserves 14 401,250,000 -
General reserves 15 811,250,000 1,017,500,000
Dividend equalisation reserves 46,500,000 46,500,000
Retained earnings 337,964,514 101,934,189
Total equity 1,900,714,514 1,419,684,189
Total liabilities and Shareholders' equity 21,615,259,934 16,912,673,151
66
2009 2008
Note
Taka Taka
OFF - BALANCE SHEET ITEMS
Contingent liabilities 16.1

Letters of guarantees 6,698,663 8,478,773
Irrevocable letters of credits 9,000,000 14,250,000
Indemnity bonds 8,899,650 12,427,529
24,598,313 35,156,302
Other commitments 16.2
Undisbursed contracted loans and leases 626,094,560 392,080,194
Total Off-Balance Sheet items 650,692,873 427,236,496
The annexed notes 1 to 41 form an integral part of these financial statements.
Chairman Director CEO & Managing Director Company Secretary
As per our annexed report of same date.
Dhaka, March 16, 2010 Auditors

Rahman Rahman Huq
Chartered Accountants
67
Profit and Loss Account
2009 2008
Note
Taka Taka
Interest income 18 2,561,496,892 2,144,365,885

Interest expenses 19 (1,619,153,280) (1,523,299,164)
Net interest income 942,343,612 621,066,721
Investment income 20 288,646,800 171,127,083
Commission and brokerage 21 225,342,522 135,332,714
Other operating income 22 90,629,521 63,109,295
Total operating income 1,546,962,455 990,635,813
Salaries and allowances 23 212,923,526 156,516,188

Rent, taxes, insurance, electricity, etc. 24 31,015,941 25,308,999
Legal expenses 25 1,851,803 1,367,814
Postage, stamp, telecommunication, etc. 26 9,902,124 7,279,682
Stationery, printing, advertisements, etc. 27 24,802,902 21,761,561
Managing Director's salary and benefits 28 1,564,600 7,502,092
Directors' fees 29 455,400 323,775
Auditors' fees 30 378,050 216,300
Charges on loan losses - -
Depreciation and repair of Company's assets 31 51,658,001 46,410,413
Other expenses 32 105,368,194 51,042,467
Total operating expenses 439,920,541 317,729,291
Profit before provisions 1,107,041,914 672,906,522
Provision for loans / investments

General provision 11.7(ii) 34,844,605 11,536,807
Specific provision 11.7(ii) 109,247,477 100,621,549
Provision for diminution in value of investments 11.7(ii) 315,453 7,677,197
Total provision 144,407,535 119,835,553
Total profit before taxes 962,634,379 553,070,969
68
2009 2008
Note
Taka Taka
Provision for taxation

Current tax 11.2 441,974,536 297,978,321
Deferred tax 8.5 2,129,518 115,685
444,104,054 298,094,006
Net profit after taxation 518,530,325 254,976,963
Appropriations
Statutory reserve 105,000,000 -

General reserve 90,000,000 170,000,000
195,000,000 170,000,000
Retained surplus 323,530,325 84,976,963
Earnings per share (EPS) 34 172.84 84.99

Rahman Rahman Huq
69
(Merchant Banking Operation)
Profit and Loss Account
2009 2008
Note
Taka Taka
Operational revenue
Underwriting commission 2,606,862 -
Custodial fees 12,500 12,500
Issue management fees 3,300,000 397,700
Income from portfolio management services 808,578,337 434,651,664
814,497,699 435,061,864
Less: Operational expenses
Interest expenses 17.3 519,216,990 293,027,900
Administrative expenses 17.4 23,834,499 16,068,765
Depreciation on property and equipment 7.1 6,814,543 1,718,998
Provision for margin loan 11.7(i) 27,960,044 16,786,002
Other operational expenses 17.5 47,133,237 15,784,973
624,959,313 343,386,638
Profit from merchant banking operations 189,538,386 91,675,226

Rahman Rahman Huq
70
Cash Flow Statement
2009 2008
Particulars
Taka Taka
A) Cash flows from operating activities

Interest received 2,561,496,892 2,144,365,885
Interest paid (1,619,153,280) (1,523,299,164)
Dividend received 288,646,800 171,127,083
Fees and commission received 225,342,522 135,332,714
Payment of income tax (248,732,683) (192,244,498)
Paid to employees and suppliers (399,310,178) (282,863,339)
Received from other operating activities 88,070,609 62,388,083
Cash generated from operating activities before
changes in operating assets and liabilities 896,360,682 514,806,764
Increase / (decrease) in operating assets and liabilities
Lease receivable 350,570,259 (162,200,012)
Long-term finance (656,405,035) (541,464,992)
Real estate finance (873,504,121) (850,439,907)
Car loans (12,725,712) 555,472
Personal loan (56,003,594) (44,408,101)
Margin loan to portfolio investors (2,796,004,407) (1,678,600,210)
Short term finance 18,982,271 (122,844,540)
Other assets 101,078,890 212,240,030
Term and other deposits 1,725,104,331 (58,127,798)
Drawdown of short term loan 1,615,561,476 252,132,907
Payable and accrued expenses 306,194,756 339,873,180
Inter-company payables (5,903,608) 7,757,873
Deferred liability-employee gratuity 4,948,349 6,671,205
Portfolio investors' fund 123,339,973 (6,785,583)
Fund from CIDA for LEIC project (12,581,868) (42,389,672)
Interest suspense account 4,316,839 (3,818,999)
(163,031,201) (2,691,849,147)
Net cash from operating activities 733,329,481 (2,177,042,383)
B) Cash flows from investing activities
Purchase of property and equipment (65,785,819) (38,080,431)
Disposal of property and equipment 6,972,052 2,478,994
Payment against lease obligation (1,208,905) (2,817,013)
Net proceeds of investment in securities (182,266,481) 35,477,770
Net cash used in investing activities (242,289,153) (2,940,680)
C) Cash flows from financing activities
Drawdown of term loans 1,595,871,944 2,120,786,616
Repayment of term loans (1,327,427,775) (1,005,789,355)
Dividend paid (37,106,237) (29,491,571)
Net Cash from financing activities 231,337,932 1,085,505,690
D) Net increase / (decrease) in cash and cash equivalents (A+B+C) 722,378,260 (1,094,477,373)
E) Effects of exchange rate changes on cash and cash equivalents - -
F) Cash and cash equivalents at beginning of the year 414,995,814 1,509,473,187
G) Cash and cash equivalents at end of the year (D+E+F) 1,137,374,074 414,995,814
Cash and cash equivalents at end of the year
Cash in hand (including foreign currencies) 66,000 51,000
Balance with Bangladesh Bank and its agent bank (s) 225,155,458 213,666,706
Balance with other banks and financial institutions (Note- 4 ) 912,152,616 201,278,108
1,137,374,074 414,995,814
71
72
IDLC FINANCE LIMITED
Statement of Changes in Equity
ANNUAL REPORT 2009

Dividend
Share Share Statutory General equalisation Retained
capital premium reserve reserve reserve earnings Total
Taka Taka Taka Taka Taka Taka Taka
Balance at 1 January 2009 250,000,000 3,750,000 - 1,017,500,000 46,500,000 101,934,189 1,419,684,189
Changes in accounting policy - - - - - - -
250,000,000 3,750,000 - 1,017,500,000 46,500,000 101,934,189 1,419,684,189
Surplus/(deficit) on account of revaluation of
- - - - - - -
properties
Surplus/(deficit) on account of revaluation of
- - - - - - -
investments
Currency translation differences - - - - - - -
Net gain and losses not recognised in the profit and
- - - - - - -
loss accounts
Net profit for the year 2009 - - - - - 518,530,325 518,530,325
Issue of bonus share 50,000,000 - - - - (50,000,000) -
Transfer to statutory reserve from general reserve - - 296,250,000 (296,250,000) - - -
Appropriation to reserves - - 105,000,000 90,000,000 - (195,000,000) -
Payment of dividend - - - - - (37,500,000) (37,500,000)
Balance at December 31, 2009 300,000,000 3,750,000 401,250,000 811,250,000 46,500,000 337,964,514 1,900,714,514
Balance at December 31, 2008 250,000,000 3,750,000 - 1,017,500,000 46,500,000 101,934,189 1,419,684,189

Liquidity statement
As at December 31, 2009
Figures in Taka
Particulars Not more than 1 3-12 months Above 5 years
1-3 months term 1-5 years term Total
month term term term
Assets
Cash in hand ( including balance with Bangladesh Bank) 225,221,458 - - - - 225,221,458
Balance with other banks and financial institutions 232,152,616 - 680,000,000 - - 912,152,616
Money at call and short notice - - - - - -
Investments 350,911,579 - 32,033,017 144,483,983 5,403,400 532,831,979
Loans, advances and leases 1,017,843,032 1,841,374,329 8,124,117,767 6,180,707,970 2,274,241,388 19,438,284,486
Fixed assets 3,413,014 6,802,398 29,299,320 74,033,382 74,993,118 188,541,232
Other assets 18,185,697 36,371,394 163,671,272 - 99,999,800 318,228,163
Total assets 1,847,727,396 1,884,548,121 9,029,121,376 6,399,225,335 2,454,637,706 21,615,259,934
Liabilities
Borrowing from other banks and financial institutions 1,287,915,400 971,102,751 1,081,021,113 2,140,849,101 548,292,026 6,029,180,391
Deposits and other accounts 333,074,091 807,723,783 6,184,578,486 2,638,448,517 395,943,581 10,359,768,457
Provision and other liabilities 135,946,836 271,868,483 1,222,785,152 868,464,613 826,531,488 3,325,596,572
Total liabilities 1,756,936,327 2,050,695,017 8,488,384,750 5,647,762,231 1,770,767,095 19,714,545,420
Net Liquidity Gap 90,791,069 (166,146,896) 540,736,625 751,463,105 683,870,611 1,900,714,514

ANNUAL REPORT 2009
73
Consolidated Balance Sheet
as at December 31, 2009
Note 2009 2008

Taka Taka
PROPERTY AND ASSETS
Cash
In hand 3(a)i 116,000 71,000
Balance with Bangladesh Bank 3.2 225,155,458 213,666,706
225,271,458 213,737,706
Balance with other banks and financial institutions in Bangladesh 4(a) 1,546,316,124 534,199,265
Money at call and short notice - -
Investments 5(a) 637,946,574 350,565,498
Loans, advances and leases 6(a) 19,460,718,429 15,557,896,352
Fixed assets including land, building, furniture and fixtures 7(a) 224,509,596 187,955,026
Other assets 8(a) 586,525,045 497,175,774
Total Assets 22,681,287,226 17,341,529,621
LIABILITIES AND CAPITAL
Liabilities
Borrowings from other banks and financial institutions 9 6,029,180,391 4,145,174,744
Deposits and other accounts 10
Term deposits 9,779,933,274 8,248,679,428
Other deposits 579,835,183 530,686,903
10,359,768,457 8,779,366,331
Other liabilities 11(a) 3,899,246,528 2,805,676,347
Total liabilities 20,288,195,376 15,730,217,422
Capital / Shareholders' equity
Paid-up capital 12 300,000,000 250,000,000
Share premium 13 3,750,000 3,750,000
Statutory reserves 14 401,250,000 -
General reserves 15 811,250,000 1,017,500,000
Dividend equalisation reserves 46,500,000 46,500,000
Total equity attributable to equity holders of the company 2,393,090,665 1,611,311,361
Minority interest 1,185 838
Total liabilities and Shareholders' equity 22,681,287,226 17,341,529,621
74
Note 2009 2008
Taka Taka
OFF - BALANCE SHEET ITEMS
Contingent liabilities 16.1

Indemnity bonds 8,899,650 12,427,529
24,598,313 35,156,302
Other commitments 16.2
Undisbursed contracted loans and leases 626,094,560 392,080,194
Total Off-Balance Sheet items 650,692,873 427,236,496

Rahman Rahman Huq
75
Consolidated Profit and Loss Account
2009 2008
Note
Taka Taka
Interest income 18a 2,579,797,919 2,151,348,832

Interest expenses 19a (1,686,826,371) (1,552,625,118)
Net interest income 892,971,548 598,723,714
Investment income 20a 324,105,895 174,524,169
Commission and brokerage 21a 603,549,797 342,700,154
Other operating income 22a 92,103,863 63,129,105
Total operating income 1,912,731,103 1,179,077,142
Salaries and allowances 23a 236,040,638 176,328,817

Rent, taxes, insurance, electricity, etc. 24a 39,371,001 29,207,660
Legal expenses 25a 2,802,508 1,759,699
Postage, stamp, telecommunication, etc. 26a 10,429,700 7,869,945
Stationery, printing, advertisements, etc. 27a 28,154,795 24,030,673
Managing Director's salary and benefits 28 1,564,600 7,502,092
Directors' fees 29 455,400 323,775
Auditors' fees 30a 545,250 386,925
Charges on loan losses - -
Depreciation and repair of Company's assets 31a 61,172,830 50,660,271
Other expenses 32a 108,967,717 53,544,227
Total operating expenses 489,504,439 351,614,084
Profit before provision 1,423,226,664 827,463,058
Provision for loans / investments
General provision 11.7(ii)a 34,844,605 11,536,807

Specific provision 11.7(ii)a 114,503,207 100,621,549
Provision for diminution in value of investments 11.7(ii)a 465,011 7,677,197
Total provision 149,812,823 119,835,553
Total profit before taxes 1,273,413,841 707,627,505
76
2009 2008
Note
Taka Taka
Provision for taxation

Current tax 11.2a 449,404,958 301,139,625
Deferred tax 8.5 2,129,518 115,685
451,534,476 301,255,310
Net profit after taxation 821,879,365 406,372,195
Attributable to:
Shareholders of the Company 821,878,658 406,371,882
Minority interest 707 313
821,879,365 406,372,195
Appropriations
Statutory reserve 105,000,000

General reserve 90,000,000 170,000,000
195,000,000 170,000,000
Retained surplus 626,878,658 236,371,882
Earnings per share (EPS) 34 (a) 273.96 135.46

Rahman Rahman Huq
77
Consolidated Cash Flow Statement
2009 2008
Taka Taka
A) Cash flows from operating activities

Interest received 2,579,797,919 2,151,348,832
Interest paid (1,686,826,371) (1,552,625,118)
Dividend received 324,105,895 174,524,169
Fees and commission received 603,549,797 342,700,154
Payment of income tax (249,845,433) (192,244,498)
Paid to employees and suppliers (442,131,284) (313,463,639)
Received from other operating activities 89,474,134 62,407,893
Cash generated from operating activities before changes
in operating assets and liabilities 1,218,124,657 672,647,793
Increase / (decrease) in operating assets and liabilities
Lease receivable 350,570,259 (162,200,012)
Long-term finance (656,405,035) (541,464,992)
Real estate finance (873,504,121) (850,439,907)
Car loans (12,725,712) 555,472
Personal loan (56,003,594) (44,408,101)
Margin loan to portfolio investors (2,818,438,350) (1,678,600,210)
Short term finance 18,982,271 (122,844,540)
Other assets (91,478,789) 242,741,213
Term and other deposits 1,725,104,331 (58,127,798)
Drawdown of short term loan 1,615,561,476 252,132,907
Payable and accrued expenses 625,567,780 341,049,940
Portfolio investors' fund 123,339,973 (6,785,583)
Fund from CIDA for LEIC project (12,581,868) (42,389,672)
Interest suspense account 4,316,839 (3,818,999)
(52,746,191) (2,667,929,077)
Net cash from operating activities 1,165,378,466 (1,995,281,284)
78
2009 2008
Taka Taka
B) Cash flows from investing activities

Purchase of property and equipment (92,449,865) (48,788,539)
Disposal of property and equipment 7,974,059 2,478,994
Payment against lease obligation (1,208,905) (2,817,013)
Net proceeds of investment in securities (287,381,076) 35,477,770
Net cash used in investing activities (373,065,787) (13,648,788)
C) Cash flows from financing activities
Drawdown of term loans 1,595,871,944 2,120,786,616
Repayment of term loans (1,327,427,775) (1,005,789,355)
Dividend paid (37,106,237) (41,991,546)
Net Cash from financing activities 231,337,932 1,073,005,715
D) Net increase / (decrease) in cash and
cash equivalents (A+ B + C) 1,023,650,611 (935,924,357)
E) Effects of exchange rate changes on cash and
- -
cash equivalents
F) Cash and cash equivalents at beginning of the year 747,936,971 1,683,861,328
G) Cash and cash equivalents at end of the year (D+E+F) 1,771,587,582 747,936,971
Cash and cash equivalents at end of the year

Cash in hand (including foreign currencies) 116,000 71,000
Balance with Bangladesh Bank and its agent bank (s) 225,155,458 213,666,706
Balance with other banks and financial institutions (Note- 4 (a)) 1,546,316,124 534,199,265
1,771,587,582 747,936,971
79
80
Consolidated Statement of Changes in Equity
ANNUAL REPORT 2009

Attributable to equity holders of the company
Share Share Statutory General Dividend equali- Retained Minority
capital premium reserve reserve sation reserve earnings Total interest Total equity
Taka Taka Taka Taka Taka Taka Taka Taka Taka
Balance at 1 January 2009 250,000,000 3,750,000 - 1,017,500,000 46,500,000 293,561,361 1,611,311,361 838 1,611,312,199
Changes in accounting policy - - - - - - - - -
250,000,000 3,750,000 - 1,017,500,000 46,500,000 293,561,361 1,611,311,361 838 1,611,312,199
Surplus/(deficit) on account of revaluation - - - - - - - -
of properties
Surplus/(deficit) on account of revaluation - - - - - - - -
of investments
Currency translation differences - - - - - - - - -
Net gain and losses not recognised in the - - - - - - - - -
profit and loss accounts
Net profit for the year 2009 - - - - - 821,878,658 821,878,658 707 821,879,365
Issue of bonus share 50,000,000 - - - - (50,000,000) - - -
Transfer to statutory reserve from general reserve - - 296,250,000 (296,250,000) - - - - -
Appropriation to reserves - - 105,000,000 90,000,000 - (195,000,000) - - -
Adjustment for winding up of I.Cons Ltd. - - - - - (2,599,354) (2,599,354) (360) (2,599,714)
Payment of dividend - - - - - (37,500,000) (37,500,000) - (37,500,000)
Balance at December 31, 2009 300,000,000 3,750,000 401,250,000 811,250,000 46,500,000 830,340,665 2,393,090,665 1,185 2,393,091,850
Balance at December 31, 2008 250,000,000 3,750,000 - 1,017,500,000 46,500,000 293,561,361 1,611,311,361 838 1,611,312,199

Notes to the consolidated financial statements
as at and for the year ended December 31, 2009
1. Company and its activities
1.1 Legal status and nature of the Company
IDLC Finance Limited (IDLC) was incorporated in Bangladesh as a public limited company on May
23, 1985 under the Companies Act 1913 in its original name of Industrial Development Leasing
Company of Bangladesh Limited with its registered office at Hadi Mansion, 2 Dilkusha C/A. The
Company changed its name in August 2007. The registered office of the company was changed to
Bay’s Galleria (1st Floor), 57 Gulshan Avenue, Gulshan 1, Dhaka on July 1, 2006. The Company was
registered as a Financial Institution under the Financial Institutions Act 1993 and as a Merchant
Bank in 1998 with the Securities and Exchange Commission. The Company went for public issue of
its shares in 1993. Its shares are listed in the Stock Exchanges in Bangladesh.
1.2 Principal activities and nature of operation
The Company extends lease financing, as its core business, for all types of machinery and equip-
ment including vehicles for industrial and commercial purposes. It expanded its activities into
‘Short-Term Finance’ (factoring of accounts receivable and work order financing) and ‘Real Estate
Finance’ operations in 1997 and merchant banking and corporate finance in 1999. It also started
portfolio management, car loan and personal loan services to individuals in 2004 and 2007 respec-
tively.
1.3 Local Enterprise Investment Centre (LEIC)
The Company established a Local Enterprise Investment Centre (LEIC) with the contribution of
Canadian International Development Agency (CIDA) on August 31, 2005. The object of the LEIC
was to develop the local private sector by helping Small and Medium Enterprises (SME’s) have ac-
cess to capital, innovative knowledge, technologies and practices that will allow them to increase
production of better goods and services.
The project expired on December 31, 2008. However, as agreed by IDLC and CIDA, the operating
activities relating to the project were completed within April 30, 2009 and accordingly, the unused
fund received from CIDA for the project was refunded.
1.4 Subsidiary companies
1.4.1 IDLC Securities Limited
IDLC Securities Limited, another wholly owned subsidiary company of IDLC Finance Limited was
incorporated on 19 April 2006 as a private limited company under Companies Act 1994 with au-
thorised share capital of Tk 25 crore. The Company had started its operation from September 2006.
The main objective of the Company is to act as a member of stock exchanges, operate the cen-
tral depository system (CDS) and to carry on the business of brokers, jobbers or dealers in stocks,
shares, securities, commodities, commercial papers, bonds, obligations, debentures etc.
81
1.4.2 I. Cons Limited
I.Cons Limited, a wholly owned subsidiary company of IDLC Finance Limited was wound up vol-
untarily with effect from November 18, 2009. The assets and liabilities of the Company were dis-
tributed to its shareholders in proportion to the shareholding as per the liquidator’s winding up
accounts. The decision of the winding up of the Company was taken by its member at an Extra
Ordinary General Meeting held on September 29, 2009. On liquidation all the assets of I.Cons Lim-
ited were taken over by IDLC at book value and the proportionate residual balance amounting to
Tk. 795,908 was received by IDLC as a holder of 9,999 shares, out of total 10,000 shares of I.Cons
Limited.
I.Cons Limited was incorporated on March 9, 2004 as a private limited company under Companies
Act, 1994 with paid up share capital of Tk. 1,000,000. The main objective of the Company was to
carry on the business of information and communication technology services related to system
integration, process engineering, reengineering as well as to develop, design, create computer
programs and softwares and to sell, trade, import and export of such programs and softwares.
2. Basis of preparation and significant accounting policies
2.1 Statement of compliance
The financial statements have been prepared on a going concern basis following accrual basis of
accounting except for cash flow statement in accordance with the Companies Act 1994, the Finan-
cial Institutions Act 1993, Securities and Exchange Rules 1987, the Listing Rules of Dhaka and Chit-
tagong Stock Exchanges and International Accounting Standards (IAS) and International Financial
Reporting Standards (IFRS) as adopted in Bangladesh by the Institute of Chartered Accountants
of Bangladesh as Bangladesh Accounting Standards (BAS) and Bangladesh Financial Reporting
Standards (BFRS) and other applicable laws and regulations.
The presentation of the financial statements has been made as per the requirements of DFIM
Circular No: 11, dated December 23, 2009 issued by the Department of Financial Institutions and
Markets of Bangladesh Bank. The activities and accounting heads mentioned in the prescribed
form, which are not applicable for the financial institutions, have been excluded in preparing the
financial statements.
2.2 Basis of measurement
This financial statement has been prepared based on historical cost basis on generally accepted
accounting principles (GAAP) in Bangladesh and no adjustment has been made for inflationary
factors affecting the financial statements. The accounting policies, unless otherwise stated, have
been consistently applied by the Company and are consistent with those of the previous year.
2.3 Date of authorisation
The Board of Directors have authorised this financial statements for public issue on 16 March 2010
2.4 Presentation and functional currency and level of precision
The financial statements are presented in Bangladesh Taka (BDT) currency, which is the Compa-
ny’s functional currency. All financial information presented in BDT has been rounded off to the
nearest BDT.
2.5 Use of estimates and judgments
The preparation of financial statements in conformity with generally accepted accounting prin-
82
ciples requires management to make estimates and assumptions that affect the reported amounts
of assets, liabilities, revenue and expenses. It also requires disclosures of contingent assets and
liabilities at the date of the financial statements.
Provisions and accrued expenses are recognised in the financial statement in line with the Ban-
gladesh Accounting Standard (BAS) 37 “Provisions, Contingent Liabilities and Contingent Assets”
when
- the Company has a legal or constructive obligation as a result of past event.

- it is probable that an outflow of economic benefit will be required to settle the obligation.
- a reliable estimate can be made of the amount of the obligation.
The estimates and associated assumptions are based on historical experience and various other
factors that are believed to be reasonable under the circumstances, the result of which form the
basis of making the judgments about carrying values of assets and liabilities that are not readily
apparent from other sources. Actual results may differ from these estimates. However, the esti-
mates and underlying assumptions are reviewed on an ongoing basis and the revision is recogn-
ised in the period in which the estimates are revised.
2.6 Directors’ responsibility statement
The Board of Directors takes the responsibility for the preparation and presentation of these
financial statements.
2.7 Basis of consolidation of operations of subsidiary
The financial statements of the Company and its subsidiary, as mentioned in note no. 1.4, have
been consolidated in accordance with Bangladesh Accounting Standard 27 “Consolidated and
Separate Financial Statements” The consolidation of the financial statement has been made after
eliminating all material inter company balances, income and expenses arising from inter company
transactions.
The total profits of the Company and its subsidiary are shown in the consolidated profit and loss
account with the proportion of profit after taxation pertaining to minority shareholders being
deducted as ‘Minority Interest’.
All assets and liabilities of the Company and of its subsidiary are shown in the consolidated bal-
ance sheet. The interest of minority shareholder of the subsidiary are shown separately in the con-
solidated balance sheet under the heading ‘Minority Interest’.
2.8 Branch accounting
The Company has seven branches, with no overseas branch as on December 31, 2009. Accounts
of the branches are maintained at the head office from which these accounts are drawn up.
2.9 Accounting for leases
As per Bangladesh Accounting Standard (BAS) 17 “Leases”, all leases are treated as finance lease
since assets leased under agreements are transferred substantially to customers with all the risks
and rewards associated with ownership, other than legal title and all leases are full payout leases.
In accordance with the said standard, the aggregate lease receivables including un-guaranteed
residual value throughout the primary lease term are recorded as gross lease receivables while
83
the excess of gross lease receivables over the total acquisition cost including interest during the
period of acquiring the lease assets constitutes the unearned lease income.
At the execution of each lease, a portion of the unearned lease is recognised as revenue income
representing initial direct cost. The balance of the unearned lease income is amortised to revenue
on a monthly basis over the primary lease term yielding a constant rate of return over the period.
2.10 Accounting for direct finance
Books of accounts for direct finance operation are maintained based on the accrual method of
accounting. Outstanding loans, along with the accrued interest thereon, for short-term finance,
and unrealised principal for long-term finance, real estate finance, car loans and other finances are
accounted for as direct finance assets of the Company. Interest earnings are recognised as opera-
tional revenue periodically.
2.11 Merchant banking operation
As per Securities and Exchange Commission (Merchant Banker and Portfolio Manager) Rules 1996,
the services of issue management, portfolio management, underwriting of shares and securities
advisory services fall under the purview of merchant banking operation. Accordingly, profit and
loss account of merchant banking operation includes revenue from issue management, under-
writing and portfolio management services and the Company maintains separate books of ac-
counts for the merchant banking operation as required under the regulations of Securities and
Exchange Commission.
2.12 Property and equipment
i) Recognition and measurement
Owned assets
Items of own property and equipments are measured at cost less accumulated depreciation
and any accumulated impairment losses. The cost of an asset comprises its purchase price and
any directly attributable costs of bringing the assets to its working condition for its intended
use as per Bangladesh Accounting Standard (BAS) 16 ‘’Property, Plant and Equipments’’
Leasehold assets
Leasehold assets of which the company assumes substantially all the risks and rewards of
ownership are accounted for as finance leases and capitalised at the inception of the lease at
fair value of the leased property or at the present value of the minimum lease payment, which
ever is lower as per Bangladesh Accounting Standard (BAS) 17 “Leases”. The corresponding
obligation under the lease is accounted for as liability.
ii) Subsequent expenditure on property and equipment
Subsequent expenditure is capitalised only when it increases the future economic benefit
from the assets and that cost can be measured reliably. All other expenditures are recognised
as an expense as and when they are incurred.
iii) Depreciation
Depreciation is charged to amortise the cost of assets, over their estimated useful lives, us-
ing the straight-line method in accordance with BAS-16 “Property, Plant and Equipment”. Full
depreciation is charged on additions irrespective of date when the related assets are put into
84
use and no depreciation is charged from the month of disposal. Asset category wise deprecia-
tion rates are as follows:
Rates
Furniture and fixtures 12.50%
Building 2.50%
Electrical equipment 20.00%
Curtain and carpets 33.33%
Office equipment 20.00%
Office decoration 20.00%
Telephone and telex 33.33%
Motor vehicles 25.00%
Leasehold motor vehicles 25.00%
Computer 20.00%
The gain or loss arising on the disposal or retirement of an asset is determined as the difference
between the sale proceeds and the carrying amount of the asset and is recognised in the profit
and loss account.
Depreciation methods, useful lives and residual values, if any are reviewed at the balance
sheet date.
2.13 Intangible assets and amortisation of intangible assets
Intangible assets comprise the value of computer software. Intangible assets acquired separately
are measured on initial recognition at cost and are carried at cost less accumulated amortisation
and accumulated impairment losses if any. Amortisation is calculated using the straight line meth-
od to write down the cost of intangible assets to their residual values over their estimated useful
lives based on the management best estimates. Subsequent expenditure on software assets is
capitalised only when it increases the future economic benefits in the specifications to which it
relates. All other expenditure is expensed as incurred.
2.14 Revenue recognition
Interest income from loans and other sources is recognised on an accrual basis of accounting.
Interest income is recognised on due date of each equal monthly installments (EMI) and due dates
of EMIs are on 5, 15, 20 and 25 day of each month based on the date of executions. Interest income
of EMIs is recognized on the due date of each month. Interest income from all loans and leases
other than factoring and margin loan to portfolio investors are not recognized at cut-off date (31
December) i.e., for the period from due dates of EMIs in December to 31 December of the year.
Accordingly, interest income of previous year (for the period from due date in December to 31
December of earlier year) is recognized in January of the current year.
Interest on real estate finance:
Interest on real estate finance is recognised as revenue on an accrual basis and no interest on real
estate finance is accounted for as revenue where any portion of capital or interest is in arrear for
more than six months.
85
Dividend income and profit or loss on sale of securities:
Dividend income is recognised when the right to receive income is established whereas profit
or loss arising from the sale of securities is accounted for only when the securities are sold of-
floaded.
Interest on term loans and short term finance:
Interest on term loan and short term finance are recognised as revenue on an accrual basis and
interest income on term loan is not recognised where any portion of interest is in arrear for more
than three months.
Fee based revenues:
Fee on services rendered by the company are recognised as and when services are rendered.
2.15 Interest suspense account
Lease income earned, interest on term finance and on car loans overdue beyond three months
period and interest on real estate finance overdue beyond six months period are not recognised
as revenue and credited to interest suspense account.
2.16 Borrowing cost
Borrowing costs are recognised as expense in the year in which they are incurred unless capitalisa-
tion is permitted under Bangladesh Accounting Standard (BAS) 23 “Borrowing Costs”.
2.17 Cash flow statements
The cash flow statement is prepared using the direct method as stipulated in Bangladesh Ac-
counting Standard (BAS) 7 “Cash Flow Statements”.
2.18 Conversion of foreign currency transactions
Foreign currency transactions are translated into Taka at rates prevailing at the respective dates
of transactions, while foreign currency monetary assets at the end of the year are reported at the
rates prevailing on the balance sheet date. Exchange gains or losses arising out of the said conver-
sions are recognised as income or expense for the year after netting off.
2.19 Investment in securities
Investment in marketable ordinary shares has been shown at cost or market price, whichever is
lower, on an aggregate portfolio basis under Bangladesh Accounting Standard (BAS) 25 “Account-
ing for Investment”. Investment in non-marketable shares has been valued at cost. Full provision
for diminution in value of shares as on closing of the year on an individual investment basis has
been made in the account.
2.20 Provision for doubtful accounts and future losses
Provision has been made at estimated rates on outstanding exposures, based on aging and con-
tinuous review of the receivables, as per the Company policy. In addition, a general provision has
also been made by the company to cover unforeseen losses on all leases, loans and investments
excluding those for which a specific provision has been made. The provision is considered ad-
equate to meet any probable future losses.
2.21 Employees benefit obligation
86
2.21.1 Defined contribution plan
The Company operates a contributory provident fund scheme for its permanent employees. Provi-
dent fund is administered by a Board of Trustees and is funded by equal contributions both by the
employees and the Company at a predetermined rate. The contributions are invested separately
from the Company’s asset.
2.21.2 Defined benefit plan
The Company also operates an unfunded gratuity scheme. Employees are entitled to gratuity ben-
efit after completion of minimum five years of service within the Company. The gratuity is calcu-
lated on the last basic pay and is payable at the rate of one month’s basic pay for every completed
year of service upto ten years of service, one and half months basic pay for every completed year
of service upto fifteen years of service and two months basic pay for more than fifteen years of
service. Full provision for gratuity has been made in the accounts for the existing employees based
on their years of services with the Company.
2.21.3 Other employees benefit obligation
The Company operates a group life insurance scheme for its permanent employees.
The Company also has real estate loan and car loan schemes for its permanent employees.
Employees are entitled to real estate loan and car loan under this scheme after completion of
minimum five years and three years of services with the Company, respectively.
2.22 Taxation
Tax expense comprises current and deferred tax.
2.22.1 Deferred tax
The Company accounts for deferred tax as per Bangladesh Accounting Standard (BAS) 12 “Income
Taxes”. Deferred tax is provided using the balance sheet method for all temporary timing differ-
ences arising between the tax base of assets and liabilities and their carrying value for financial
reporting purposes. Tax rate prevailing at the balance sheet date is used to determine deferred
tax.
2.22.2 Current tax
Provision for current tax is made on the basis of the profit for the year as adjusted for taxation
purpose in accordance with the provision of Income Tax Ordinance, 1984 and amendments made
thereto from time to time.
2.23 Impairment of long-lived assets
The Company reviews long-lived assets for impairment whenever events or changes in circum-
stances indicate that the book value of the assets may not be recovered. Accordingly, the Com-
pany estimates the recoverable amount of the assets. Impairment losses, if any, is recognised in the
profit and loss account when the estimated recoverable amount of an asset is less than its carrying
amount.
2.24 Cash and cash equivalents
Cash and cash equivalents comprise cash in hand, cash at bank, term deposits and investments in
call loan that are readily convertible to a known amount of cash and that are subject to an insig-
nificant risk of change in value.
87
2.25 Earning per share (EPS)
The Company calculates earning per share in accordance with “Bangladesh Accounting Standards
(BAS) 33 “Earnings Per Share” which has been shown in the face of the Profit and Loss Account and
the computation is stated in note 34.
2.26 Related party disclosure
As per Bangladesh Accounting Standards (BAS) 24 “Related Party Disclosures”, parties are consid-
ered to be related if one of the party has the ability to control the other party or exercise significant
influence over the other party in making financial and operating decisions. The Company carried
out transactions in the ordinary course of business on an arm’s length basis at commercial rates
with related parties. Related party disclosures have been given in note 34(a).
2.27 Segment reporting
In compliance with the statutory (SEC regulations) requirements, the Company has prepared sep-
arate profit and loss account for its separate segment, ‘Merchant Banking Operation’. Profit and
loss accounts of merchant banking operation has been prepared in accordance with generally
accepted accounting principles and results of its operation has been combined, item by item, with
the financial results of the Company. The performance of the segment is evaluated primarily on its
profit before tax.
2.28 Proposed dividend
Proposed dividend has not been recognised as a liability in the balance sheet in accordance with
Bangladesh Accounting Standards (BAS) 10 “Event After the Balance Sheet Date”.
2.29 Reclassifications
To facilitate comparison, certain relevant balances pertaining to the previous year have been rear-
ranged/restated/reclassified whenever considered necessary to conform to current period’s pre-
sentation.
2.30 Events after the balance sheet date
All material events occurring after the balance sheet date has been considered and where neces-
sary, adjusted for or disclosed in note 40.
2.31 Liquidity statement
The liquidity statement has been prepared in accordance with remaining maturity grouping of
Assets and Liabilities as of the close of the year as per following bases:
a) Balance with other bank and financial institutions are on the basis of their maturity term.
b) Investments are on the basis of their residual maturity term.
c) Loans, advances and leases are on the basis of their repayment/maturity schedule
d) Fixed assets are on the basis of their useful lives.
e) Other assets are on the basis of their adjustment terms.
f) Borrowings from other banks and financial institutions as per their maturity/repayment terms.
g) Deposits and other accounts are on the basis of their maturity term and behavioural past
trends.
h) Other long term liabilities on the basis of their maturity terms.
i) Other liabilities are on the basis of their settlement terms.
2.32 Allocation to Merchant Banking operation
Indirect expenses have been allocated based on number of employees working in Merchant
Banking Division.
88
2.33 Compliance of Bangladesh Accounting Standards and Bangladesh Financial Reporting Stan-
dards.
Name of the BAS BAS no Status
Presentation of Financial Statements 1 Applied
Inventories 2 Applied
Cash Flow Statements 7 Applied
Accounting Policies, Changes in Accounting Estimates and Errors 8 Applied
Events after the Balance Sheet Date 10 Applied
Construction Contracts 11 N/A
Income Taxes 12 Applied
Segment Reporting 14 Applied
Property, Plant and Equipment 16 Applied
Leases 17 Applied
Revenue 18 Applied
Employee Benefits 19 Applied
Accounting for Government Grants and Disclosure of Government Assistance 20 N/A
The Effects of Changes in Foreign Exchange Rates 21 Applied
Borrowing Costs 23 Applied
Related Party Disclosures 24 Applied
Accounting for Investments 25 Applied
Accounting and Reporting by Retirement Benefit Plans 26 Applied
Consolidated and Separate Financial Statements 27 Applied
Investment in Associates 28 N/A
Disclosures in the Financial Statements of Banks and similar Financial Institutions 30 Applied
Interests in Joint Ventures 31 N/A
Financial Instruments: Disclosure and Presentation 32 N/A
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
Financial Instruments: Recognition and Measurement 39 N/A
Investment Property 40 N/A
Agriculture 41 N/A
Name of the BFRS BFRS no Status

Share Base payment 2 N/A
Business combination 3 N/A
Insurance Contracts 4 N/A
Non-current assets held for sale and discontinued operation 5 N/A
Exploration for and Evaluation of Mineral Resources 6 N/A
Financial Instruments: Disclosures 7 N/A
Operating Segments 8 N/A
89
2009 2008
Taka Taka
3 Cash
3.1 Cash in hand:
In local currency 66,000 51,000

In foreign currency - -
66,000 51,000
3.2 Balance with Bangladesh Bank in local currency 225,155,458 213,666,706
225,221,458 213,717,706
3.3 Cash Reserve Requirement (CRR) and Statutory Liquidity Reserve (SLR)
Cash Reserve Requirement and Statutory Liquidity Reserve have been calculated and maintained
in accordance with Financial Institution Act, 1993 & Financial Institution Regulations 1994 and FID
Circular No. 06 dated November 06, 2003 and FID Circular No. 02 dated November 10, 2004.
“Cash Reserve Requirement (CRR) has been calculated at the rate of 2.5% on Total Term Deposit
which is preserved in current account maintained with Bangladesh Bank. ‘Total Term Deposit’
means Term or Fixed Deposit, Security Deposit against Lease/Loan and other Term Deposits, re-
ceived from individuals and institutions (except banks & Financial Institutions).“
Statutory Liquidity Reserve (SLR) has been calculated at the rate of 5.0% on Total Liabilities, includ-
ing CRR of 2.5% on Total Term Deposit. SLR is maintained in liquid assets in the form of cash in hand
(notes & coin in BDT), balance with Bangladesh Bank and other banks and Financial Institutions,
investment at call, unencumbered treasury bill, prize bond, savings certificate & any other assets
approved by Bangladesh Bank.
a) Cash Reserve Requirement

Required reserve 225,189,000 180,751,000
Actual reserve maintained 235,949,000 184,709,000
Surplus / (deficit) 10,760,000 3,958,000
b) Statutory Liquidity Reserves
Required reserve (including CRR) 599,944,000 492,209,000
Actual reserve maintained (including CRR) (Note-3.3.1) 684,403,820 561,286,272
Surplus / (deficit) 84,459,820 69,077,272
Total required reserves 599,944,000 492,209,000
Actual reserve held 684,403,820 561,286,272
Total surplus 84,459,820 69,077,272
3.3.1 Actual reserve maintained (including CRR)
The City Bank Limited 1,626,332 4,950,061

Standard Chartered Bank 79,636,332 6,473,778
Citibank N.A. 20,928,618 6,708,954
Commercial Bank of Ceylon PLC 671,657 84,735
Southeast Bank Limited 3,061,429 287,226
Pubali Bank Limited 6,347 23,344
90
2009 2008
Taka Taka
AB Bank Limited - 1,544,926
Bank Asia Limited 1,265,237 12,514
Uttara Bank Limited 5,006 1,120
Prime Bank Limited 1,633,347 100,054,269
Eastern Bank Limited 65,290 65,660
The Hong Kong and Shanghai Banking Corporation 844,675 1,283,067
State Bank of India 659,603 1,357,178
EXIM Bank Limited - 584,860
Bangladesh Bank 218,999,946 162,854,579
Southeast Bank Limited 30,000,000 -
International Leasing and Financial Service Limited 100,000,000 -
Bank Alfalah Limited 50,000,000 50,000,000
LankaBangla Finance Limited 100,000,000 -
United Leasing Co. Limited 50,000,000 50,000,000
Dhaka Bank Limited - 50,000,000
Mercantile Bank Limited - 100,000,000
Investment in Bonds 25,000,000 25,000,000
684,403,820 561,286,272
3(a) Consolidated cash

3(a)i Cash in hand:
IDLC Finance Limited 66,000 51,000
IDLC Securities Limited 50,000 20,000
116,000 71,000
4 Balance with other banks and financial institutions in Bangladesh

Current deposits in local currency:
Woori Bank limited 150 -
Uttara Bank Limited 4,541 551
Bank Al- Falah Limited 1,103 1,613
Islami Bank Bangladesh Limited 2,311 2,961
Basic Bank Limited 1,270 3,150
The City Bank Limited 440 3,247
National Bank Limited 4,990 5,850
Eastern Bank Limited 2,049,851 59,708
Arab Bangladesh Bank Limited - 188,367
Bank Asia Limited 3,937,988 376,716
State Bank of India 1,175,702 906,736
Commercial Bank of Ceylon PLC 61,616,510 1,084,146
The Hong Kong and Shanghai Banking Corporation 5,215,184 4,165,507
Citibank N.A 13,822,882 27,558,658
Standard Chartered Bank * (7,788,932) (399,441,898)
80,043,990 (365,084,688)
91
2009 2008
Taka Taka
Short-term deposit accounts:
Pubali Bank Limited 6,016 23,370
Prime Bank Limited 35,428 54,469
EXIM Bank Limited - 314,871
BRAC Bank Limited 3,422,905 2,602,333
Southeast Bank Limited 11,201,014 11,042,310
Citibank N.A 25,356,497 33,549,210
Fund received from CIDA for LEIC (Citibank N.A.) - 12,581,868
52,108,626 136,362,796
Fixed Deposits:
International Leasing & Financial Services Limited 150,000,000 -
LankaBangla Finance Limited 200,000,000 -
Phoenix Finance & Investments Limited 180,000,000 50,000,000
United Leasing Company Limited 50,000,000 50,000,000
Social Islami Bank Limited 100,000,000 -
ONE Bank Limited 100,000,000 -
Mercantile Bank Limited - 100,000,000
Bank Alfalah Limited - 100,000,000
Prime Bank Limited - 100,000,000
Southeast Bank Limited - 30,000,000
780,000,000 430,000,000
912,152,616 201,278,108
* The negative balance in current deposit account has arisen due to the issuance of cheques at the close of
the year (December 30 and 31) against payments relating to 2009. Required fund were transferred to the ac-
counts on January 1, 2010. However, as on December 30, 2009 (December 31 being bank holiday) there was
a positive balance.
4.1 Maturity grouping of balance with other banks and financial institutions
Payable on demand 80,043,990 (365,084,688)

Up to 1 month 152,108,626 236,362,796
Over 1 month but not more than 3 months - -
Over 3 months but not more than 6 months 330,000,000 50,000,000
Over 6 months but not more than 1 year 350,000,000 280,000,000
Over 1 year but not more than 5 years - -
Over 5 years - -
912,152,616 201,278,108
92
2009 2008
Taka Taka
4(a) Consolidated balance with other banks and financial institutions:
In Bangladesh:
IDLC Finance Limited 912,152,616 201,278,108
IDLC Securities Limited (Note-4(a)i) 634,163,508 332,419,525
I.Cons Limited - 501,632
1,546,316,124 534,199,265
4(a)i Bank balance of IDLC Securities Limited
Standard Chartered Bank Ltd. 425,906,806 322,103,269

Eastern Bank Ltd. 202,422,721 -
Commercial Bank of Ceylon Plc 362,031 -
BRAC Bank Limited - 5,316,256
Trust Bank Limited 5,471,950 5,000,000
634,163,508 332,419,525
5 Investments
Government securities: - -
Other investments:
Investment in non marketable ordinary shares (Note-5.1) 5,403,400 500,000
Investment in preference shares (note 5.2) 171,517,000 150,187,000
Investment in bonds (Note-5.3) 25,000,000 25,000,000
Investment in marketable securities (Note-5.4) 330,911,579 174,878,498
532,831,979 350,565,498
532,831,979 350,565,498
5.1 Investment in non-marketable ordinary shares
No. of Shares
Credit Rating Agency of Bangladesh
Limited 12,375 1,237,500 500,000
Dan & Bradstreet Rating Agency
Bangladesh Limited 41,659 4,165,900 -
5,403,400 500,000
5.2 Investment in preference shares
17.5% cumulative redeemable preference shares of Basic Dredg-

ing Company Limited * 20,000,000 20,000,000
9% cumulative redeemable preference shares of BRAC Bank Ltd 50,000,000 50,000,000
10% cumulative redeemable preference shares of PHP Power Company Ltd 8,670,000 17,340,000
12% cumulative redeemable preference shares of STS Holdings Ltd 55,236,500 55,236,500
12.75% cumulative redeemable preference shares of ECP Ltd 7,610,500 7,610,500
14.0625% cumulative redeemable preference shares of Fiber @ Home Ltd 30,000,000 -
171,517,000 150,187,000
Adequate provisions for future losses have been made as per Bangladesh Bank Guidelines.
93
* “Redemption of the 17.5% cumulative redeemable preference shares of Basic Dredging Company Limited is
under process. Full amount against the shares has been collected and redemption of the shares will be af-
fected after completion of some legal formalities.“
5.3 Investment in bonds
“As per Trust Deed signed between IDLC Finance Limited (IDLC) and Investment Corporation of Bangladesh
(ICB), a Trust named “IDLC Securitization Trust 2007-A” was formed and IDLC sold lease receivables of Tk.
364,154,897 to the Trust to issue asset backed securitized zero coupon bonds. The Trust issued 50 class A
bonds and 5 class B bonds of Tk. 5,000,000 each of which IDLC purchased all class B bonds bearing coupon
rate of 7.75% per year. All class B bonds are subordinated to class A bonds.“
Any loss due to non-collection of lease receivables will be adjusted upto the amount of class B bonds held by
IDLC.
5.4 Investment in marketable securities

Details of marketable securities are given below:
Market price as at
Name of company No. of shares Cost price 31-Dec-09
Taka Taka
AB Bank limited 25,000 29,600,940 29,412,500
Al-Arafah Islami Bank Limited 25,000 13,413,863 13,406,250
Apex Adelchi Footwear Ltd. 11,300 27,341,723 29,190,725
Bata Shoe Company Bangladesh Limited 28,700 14,287,840 15,162,210
BGIC Limited 4 800 2,156
BOC Bangladesh Limited 49,000 23,048,129 23,858,100
British American Tobacco Bangladesh Co. Limited 152,700 60,556,828 62,515,380
BSRM Steels Limited 31,800 30,587,692 32,483,700
Grameen Phone Limited. 113,600 8,154,800 21,300,000
Green Delta Insurance Company Limited 11,050 17,642,156 18,450,738
Heidelberg Cement Bangladesh Limited 9,000 19,411,150 19,372,500
LankaBangla Finance Limited 115,000 34,803,644 36,087,000
National Credit And Commerce Bank Limited 35,000 20,485,750 20,405,000
Prime Finance & Investment Limited 5,000 9,266,413 9,301,250
R.A.K. Ceramics (Bangladesh) Limited 125,000 5,000,000 5,000,000
Square Pharmaceuticals Limited 6,679 17,309,851 19,210,474
330,911,579 355,198,161
All investments in marketable securities are valued on an aggregate portfolio basis, at the lower of cost and
market value, at the balance sheet date.
As on December 31, 2009 there was Tk 24,561,857 gross unrealised gain and Tk 315,453 gross unrealised loss
on investment in marketable listed securities. However, provisions have been made amounting to Tk 315,453
for diminution in value of shares as on the close of the year on an individual investment basis.
94
2009 2008
Taka Taka
5.5 Maturity grouping of investments:
On demand - -
Up to 1 month 350,911,579 194,878,498
Over 1 month but not more than 3 months - -
Over 3 months but not more than 6 months 11,681,508 -
Over 6 months but not more than 1 year 20,351,509 8,670,000
Over 1 year but not more than 5 years 144,483,983 146,517,000
Over 5 years 5,403,400 500,000
532,831,979 350,565,498
5(a) Consolidated investments

IDLC Securities Limited (Note - 5(a)i) 105,114,595 -
637,946,574 350,565,498
5(a)i Details of marketable securities are given below:
Cost price Market price as at

Name of company No. of shares Taka 31-Dec-09
Taka
LankaBangla Finance Limited 100,000 29,884,905 31,380,000
NCC Bank Limited 50,000 29,299,558 29,150,000
Prime Bank Limited 50,000 32,099,805 32,650,000
Square Pharma 5,000 13,830,327 14,381,250
105,114,595 107,561,250
6 Loans, advances and lease
Inside Bangladesh:
Lease receivable
Gross lease rentals receivable (Note-6.1) 5,061,010,814 5,798,249,728
Unearned lease income (Note-6.2) (873,405,403) (1,118,798,134)
Advance for leases (Note-6.3) 195,347,173 54,071,249
4,382,952,584 4,733,522,843
Long-term finance (Note-6.4) 3,437,116,151 2,780,711,116
Real estate finance (Note-6.5) 4,788,544,980 3,915,040,859
Car loans (Note-6.6) 344,592,105 331,866,393
Personal loan (Note-6.7) 100,411,695 44,408,101
Margin loan to portfolio investors (Note-11.5) 5,861,960,297 3,065,955,890
Short term finance (Note-6.8) 316,976,537 335,958,808
95
2009 2008
Taka Taka
Loan against deposits (LAD) 205,730,137 350,432,342

19,438,284,486 15,557,896,352
Outside Bangladesh - -
19,438,284,486 15,557,896,352
6.1 Gross lease rentals receivable
Balance at January 1 5,798,249,728 5,763,067,288

Add: Addition during the year 1,593,500,835 2,263,503,293
7,391,750,563 8,026,570,581
Less: Realisation during the year 2,374,930,926 2,193,111,414
5,016,819,637 5,833,459,167
Add: Net receivable/(payable) on terminated leases 44,191,177 (35,209,439)
Balance at December 31 5,061,010,814 5,798,249,728
6.1.1 Aging analysis of gross lease receivable
2009 2008
Amount in Tk. % of total Amount in Tk. % of total
Up to one year 2,395,421,255 47.33 2,458,972,630 42.41

Above one year to three years 2,239,064,309 44.24 2,576,649,371 44.44
Above three years to five years 425,361,132 8.40 638,660,502 11.01
More than five years 1,164,118 0.02 123,967,225 2.14
5,061,010,814 100.00 5,798,249,728 100.00
6.2 Unearned lease income
The excess of aggregate rentals receivable over the cost of the leased asset constitutes the total unearned
lease income. The unearned lease income is recognised as revenue on an accrual basis over the terms of the
lease.

Add: Addition during the year 364,421,812 546,157,501
1,483,219,946 1,760,048,723
Less: Lease income earned during the year 609,814,543 641,250,589
Balance at December 31 873,405,403 1,118,798,134
6.3 Advance for leases

This represents disbursements for procurement of leased assets and capitalised cost of funds for the period
from the dates of respective disbursements to the date of execution of lease. On execution of lease, advances
will be transferred to gross lease receivables.
96
2009 2008
Taka Taka
6.4 Long-term finance

Add: Disbursement made during the year 1,969,038,089 1,345,271,883
4,749,749,205 3,584,518,007
Less: Realisation during the year 1,312,633,054 803,806,891
6.5 Real estate finance
This represents loans to individuals, employees under the Company’s real estate loan scheme and corporate
bodies for purchase and construction of apartments and homes in urban areas for periods ranging from 5 to
20 years. Details are as under:

Add : Disbursement during the year 1,739,661,253 1,523,236,208
5,654,702,112 4,587,837,160
Less : Realisation during the year 866,157,132 672,796,301
6.5.1 Aging analysis of real estate finance
2009 2008
Amount in Tk. % of total Amount in Tk. % of total
Up to one year 727,408,845 15.19 596,580,235 15.24

Above one year to three years 1,054,007,164 22.01 924,314,678 23.61
Above three years to five years 876,552,519 18.31 779,921,696 19.92
More than five years 2,130,576,451 44.49 1,614,224,250 41.23
4,788,544,980 100.00 3,915,040,859 100.00
6.6 Car loans
Balance at January 1 331,866,393 332,421,865

Add : Disbursement during the year 134,401,610 112,134,210
466,268,003 444,556,075
Balance at December 31 344,592,105 331,866,393
97
2009 2008
Taka Taka
6.7 Personal loan
Balance at January 1 44,408,101 -

Add : Disbursement during the year 72,271,037 47,260,124
116,679,138 47,260,124
6.8 Short term finance
Factoring and account receivable 268,314,388 273,377,322

Work order financing 4,186,660 6,813,443
Inter Corporate Deposits (ICD) 44,475,489 55,768,043
316,976,537 335,958,808
6.9 Net loans, advances and leases
Gross performing loans, advances and leases (Note-6) 19,438,284,486 15,557,896,352

Less:
Non-performing loans, advances and leases (Note-6.15) 630,364,472 570,933,903
Interest suspense (Note-11.6) 45,133,803 40,816,964
Provision for loans and advances / investments (Note-11.7) 877,700,432 733,292,897
1,553,198,707 1,345,043,764
17,885,085,779 14,212,852,588
6.10 Residual maturity grouping of loans, advances and leases
Repayable on demand - -
Over 1 month but not more than 3 months 2,859,217,361 2,624,526,929
Over 3 months but not more than 1 year 8,124,117,767 4,821,907,846
Over 1 year but not more than 5 years 6,180,707,970 7,418,627,910
Over 5 years 2,274,241,388 692,833,667
19,438,284,486 15,557,896,352
98
2009 2008
Taka Taka
6.11 Loans, advances and lease on the basis of significant concentration
a) Loans, advances and lease to the institutions in which Di-

rectors have interest 184,869,045 177,203,440
b) Loans, advances and lease to Chief Executive and other
senior executives 33,980,203 21,481,959
c) Loans, advances and lease to customer groups:
i) Real estate finance 4,240,518,212 3,643,549,590
ii) Car Loan 344,592,105 331,866,393
iii) Personal loan 100,411,695 44,408,101
iv) Loan against deposits (LAD) 205,730,137 350,432,342
vi) Small and medium enterprises 3,069,156,959 2,397,351,821
vii) Special program loan (BB refinancing scheme) 674,097,207 279,884,913
viii) Staff loan 47,690,378 58,339,503
ix) Industrial Loans, advances and leases (Note-6.11(d)) 4,675,278,248 5,187,422,401
x) Other loans and advances 5,861,960,297 3,065,955,890
19,219,435,238 15,359,210,953
19,438,284,486 15,557,896,352
d) Details of Industrial loans, advances and leases

i) Agricultural industries 228,555,335 225,722,023
ii) Textiles, Apparels & Accessories 814,958,537 1,022,805,517
iii) Food and Beverage 402,248,280 550,224,300
iv) Pharmaceuticals 433,426,971 363,312,283
v) Leather & Leather Products, Chemicals 37,809,074 47,630,295
vi) Power, Energy & Engineering 568,913,296 445,508,634
vii) Real Estate & Home Appliances, Cement, Ceramics 476,545,166 645,824,609
viii) IT & Services 1,115,332,201 1,224,374,382
ix) Transportation 271,143,965 189,642,390
x) Other industries 326,345,423 472,377,968
4,675,278,248 5,187,422,401
99
2009 2008
Taka Taka
6.12 Loans, advances and leases -geographical location-wise
Inside Bangladesh:
Urban
Dhaka 14,662,511,453 12,183,838,495
Chittagong 4,454,391,527 3,215,832,795
Bogra 175,180,195 158,225,062
Sylhet 146,201,311 -
19,438,284,486 15,557,896,352
Outside Bangladesh: - -
19,438,284,486 15,557,896,352
6.13 Details of large loan / investments
There were no clients with outstanding amount and classified loans / investments exceeding 15% of total
capital of the financial institution. Total capital of the financial institution was Taka 1,900.71 million as at 31
December 2009 (Tk 1,419.68 million in 2008)
6.14 Particulars of loans, advances and leases
i) Loans, advances and leases considered good in respect of

which the financial institution is fully secured 15,220,407,342 11,781,481,641
ii) Loans, advances and leases considered good against
which the financial institution holds no security other
than the debtors' personal guarantee 3,521,646,572 2,765,144,504
iii) Loans, advances and leases considered good secured by
the personal undertaking of one or more parties in addi-
tion to the personal guarantee of the debtors 696,230,572 1,011,270,206
19,438,284,486 15,557,896,352
iv) Loans, advances and leases adversely classified; provision
not maintained there against - -
v) Loans, advances and leases due by directors or officers of
the financial institution or any of them either separately or
jointly with any other persons [Note-6.11(b) & 6.11(c) (viii)] 81,670,581 79,821,462
vi) Loans, advances and leases due from companies or firms
in which the directors of the financial institution have
interest as directors, partners or managing agents or in
case of private companies, as members 184,869,045 177,203,440
vii) Maximum total amount of advances including temporary
advances made at any time during the year to directors or
managers or officers of the financial institution or any of
them either separately or jointly with any other person. 81,670,581 79,821,462
100
2009 2008
Taka Taka
viii) Maximum total amount of advances including temporary

advances granted during the year to the companies or
firms in which the directors of the financial institution
have interest as directors, partners or managing agents
or in the case of private companies, as member 184,869,045 177,203,440
ix) Due from bank and financial institutions 278,525,269 323,919,317
x) Classified loans, advances and leases
a) Classified loans, advances and leases on which in-
terest has not been charged (Note-6.15) 630,364,472 570,933,903
b) Provision on doubtful loans, advances and leases (9,105,991) (7,501,687)
Provision on bad loans, advances an d leases 118,353,468 108,123,236
Total specific provisions (Note 11.7(ii)) 109,247,477 100,621,549
c) Amount of written off loans, advances and leases 53,499,115 53,499,115
Total amount realised against loans and leases pre-
viously written off 5,600,000 5,600,000
d) Provision kept against loans and advances classi-
fied as bad debts 118,353,468 108,123,236
e) Interest credited to Interest Suspense Account
(Note-11.6) 45,133,803 40,816,964
xi) Cumulative amount of written off loans, advances and
leases
Opening Balance 53,499,115 53,499,115
Amount written off during the year - -
53,499,115 53,499,115
Total amount realised against loans and leases previously
written off 5,600,000 4,860,000
The amount of written off loans, advances and leases for
which law suits have been filed 104,801,931 104,801,931
6.15 Classification of loans, advances and leases
Unclassified:
Standard including staff loan 18,614,392,409 14,805,934,131
Special mention account (SMA) 193,527,605 181,028,318
18,807,920,014 14,986,962,449
Classified:
Sub-standard 140,170,673 182,467,801
Doubtful 55,018,347 35,550,944
Bad / Loss 435,175,452 352,915,158
630,364,472 570,933,903
19,438,284,486 15,557,896,352
101
2009 2008
Taka Taka
6.16 Particulars of required provision for loans, advances and leases
Status Base Rate

for provision (%)
General Provision
Loans and leases (Excluding SMA) 18,337,863,560 Various 183,694,088 152,880,497
Special mention account (SMA) 193,717,136 5% 9,685,857 9,795,315
193,379,945 162,675,813
Status Base Rate

for provision (%)
Specific provision
Sub-standard 133,161,861 20% 26,632,372 36,994,060
Doubtful 45,215,654 50% 22,607,827 17,471,743
Bad / loss 415,197,388 100% 415,197,388 321,459,859
464,437,587 375,925,662
Required provision for loans, advances and leases 657,817,532 538,601,474
Total provision maintained (Note - 11.7) 877,700,432 733,292,897
Excess / (short) provision at 31 December 219,882,901 194,691,423
6(a) Consolidated loans, advances and leases
IDLC Finance Limited 19,438,284,486 15,557,896,352

IDLC Securities Limited 22,433,943 -
19,460,718,429 15,557,896,352
102
7 Property and equipment
Cost Depreciation Written down

Balance at Addition Disposal/ Balance at Balance at Charged Adjustment Balance at value at
January 1, during adjustment December 31 Rate January 1, for the year during December 31, December 31,
Asset category during
2009 the year 2009 2009 2009 the year 2009 2009
the year
Taka Taka Taka Taka % Taka Taka Taka Taka Taka
Free hold assets:
Land 26,958,470 - - 26,958,470 - - - - - 26,958,470
Building 56,530,000 - - 56,530,000 2.50 3,533,125 1,413,250 - 4,946,375 51,583,625
Furniture and fixtures 18,092,092 10,231,106 (1,127,998) 27,195,200 12.50 6,657,615 2,923,316 (596,085) 8,984,846 18,210,354
Electrical equipment 22,348,735 11,428,905 (3,513,959) 30,263,681 20.00 13,118,408 4,880,679 (3,199,756) 14,799,331 15,464,350
Curtain and carpets 815,362 834,809 (372,440) 1,277,731 33.33 615,735 302,708 (367,907) 550,536 727,195
Office equipment 27,758,507 4,090,829 (766,630) 31,082,706 20.00 12,656,919 5,316,395 (746,590) 17,226,724 13,855,982
Office decoration 20,207,207 11,386,203 (177,268) 31,416,142 20.00 11,442,551 5,003,833 (177,153) 16,269,231 15,146,911
Computers 29,483,152 9,256,540 (4,042,284) 34,697,408 20.00 19,665,724 5,026,694 (4,011,475) 20,680,943 14,016,465
Software 9,841,010 247,500 (70,000) 10,018,510 33.33 6,974,371 1,504,960 (69,985) 8,409,346 1,609,164
Telephone and telex 4,843,055 823,514 (646,535) 5,020,034 33.33 3,033,317 863,416 (581,995) 3,314,738 1,705,296
Motor vehicles 40,787,445 15,749,000 (8,373,061) 48,163,384 25.00 16,972,430 10,472,126 (4,926,089) 22,518,467 25,644,917
257,665,035 64,048,406 (19,090,175) 302,623,266 94,670,195 37,707,377 (14,677,035) 117,700,537 184,922,729
Lease hold assets:
Motor vehicles 23,134,624 1,737,413 - 24,872,037 25.00 18,350,548 2,902,986 - 21,253,534 3,618,503
Total 2009 280,799,659 65,785,819 (19,090,175) 327,495,303 113,020,743 40,610,363 (14,677,035) 138,954,071 188,541,232
Total 2008 246,378,851 38,080,431 (3,659,623) 280,799,659 80,056,632 34,865,952 (1,901,841) 113,020,743 167,778,916

ANNUAL REPORT 2009
103
104
7.1 Allocation of depreciation charged (note 2.32)
Depreciation charged during the year has been allocated as follows: 2009 2008
ANNUAL REPORT 2009

Taka Taka
Main Operation 33,795,820 33,146,954
Merchant Bank Operation 6,814,543 1,718,998
40,610,363 34,865,952
7.2 Details of disposals/adjustments :
Accumulated Sale price/ Profit/(loss) on

Asset category Cost depreciation Book value adjustment disposal Mode of disposal Buyer
Taka Taka Taka Taka Taka
Free hold assets :
Furniture and fixtures 1,127,998 (596,085) 531,913 450,513 (81,400) As per policy of the Company Employees
Electrical equipment 3,513,959 (3,199,756) 314,203 806,586 492,383 As per policy of the Company Employees
Curtain and carpets 372,440 (367,907) 4,533 7,327 2,794 As per policy of the Company Employees
Office decoration 177,268 (177,153) 115 12,894 12,779 As per policy of the Company Outsiders
Office equipment 766,630 (746,590) 20,040 1 (20,039) As per policy of the Company Adjusted
Computers 4,042,284 (4,011,475) 30,809 37,348 6,539 As per policy of the Company Outsiders
Software 70,000 (69,985) 15 - (15) As per policy of the Company Adjusted
Telephone and telex 646,535 (581,995) 64,540 89,056 24,516 As per policy of the Company Employees
Motor vehicles 8,373,061 (4,926,089) 3,446,972 5,568,327 2,121,355 As per policy of the Company Employees
Total 2009 19,090,175 (14,677,035) 4,413,140 6,972,052 2,558,912
7(a) Consolidated property and equipment
Balance at Addition Disposal/ Balance at Balance at Charged Adjustment Balance at value at

Asset category January 1, during adjustment December 31, Rate January 1, for the year during December 31, December 31,
2009 the year during 2009 % 2009 2009 the year 2009 2009
Taka Taka the year Taka Taka Taka Taka Taka Taka
Taka
Free hold assets:
Land 26,958,470 - - 26,958,470 - - - - 26,958,470
Building 56,530,000 - - 56,530,000 2.50 3,533,125 1,413,250 - 4,946,375 51,583,625
Furniture and fixtures 20,760,616 13,398,427 (1,470,398) 32,688,645 12.50 7,115,886 3,417,747 (724,485) 9,809,148 22,879,497
Electrical equipment 23,797,114 18,092,398 (4,974,821) 36,914,691 20.00 13,684,564 6,207,780 (3,408,848) 16,483,496 20,431,195
Curtain and carpets 815,362 912,309 (372,440) 1,355,231 33.33 615,735 319,928 (367,907) 567,756 787,475
Office equipment 35,582,108 9,183,315 (807,343) 43,958,080 20.00 13,991,069 6,833,213 (747,269) 20,077,013 23,881,067
Office decoration 25,238,458 15,914,036 (1,931,421) 39,221,073 20.00 12,075,655 5,831,944 (259,300) 17,648,299 21,572,774
Computers 34,514,572 12,101,940 (4,042,284) 42,574,228 20.00 20,885,475 6,366,294 (4,011,475) 23,240,294 19,333,934
Software 10,291,010 817,500 (70,000) 11,038,510 33.33 7,266,010 1,762,017 (69,985) 8,958,042 2,080,468
Telephone and telex 4,994,872 1,378,527 (685,485) 5,687,914 33.33 3,082,086 984,870 (585,588) 3,481,368 2,206,546
Motor vehicles 43,041,445 18,914,000 (9,373,061) 52,582,384 25.00 17,103,472 11,333,126 (5,030,256) 23,406,342 29,176,042
282,524,027 90,712,452 (23,727,253) 349,509,226 99,353,077 44,470,169 (15,205,113) 128,618,133 220,891,093
Lease hold assets:
Motor vehicles 23,134,624 1,737,413 - 24,872,037 25.00 18,350,548 2,902,986 - 21,253,534 3,618,503
Total 2009 305,658,651 92,449,865 (23,727,253) 374,381,263 117,703,625 47,373,155 (15,205,113) 149,871,667 224,509,596
Total 2008 260,529,735 48,788,539 (3,659,623) 305,658,651 81,455,021 38,150,445 (1,901,841) 117,703,625 187,955,026
7.1(a) Allocation of depreciation charged (note 2.32)

Depreciation charged during the year has been allocated as follows: 2009 2008
Taka Taka
Main Operation 40,558,612 36,431,447

47,373,155 38,150,445
ANNUAL REPORT 2009
105
2009 2008
Taka Taka
8 Other assets
Investment in subsidiary companies (Note - 8.1) 99,999,800 50,999,800

Accounts receivable (Note - 8.2) 158,293,629 284,276,412
Advances, deposits and prepayments (Note - 8.3) 30,353,301 54,537,874
Inter - company receivables (Note - 8.4) 13,959,484 13,871,018
Deferred tax asset (Note - 8.5) 15,621,949 17,751,467
318,228,163 421,436,571
8.1 Investment in subsidiary companies
IDLC Securities Limited (Note- 8.1.1) 99,999,800 49,999,900

I. CONS Limited (Note-8.1.2) - 999,900
99,999,800 50,999,800
8.1.1 Out of the total of 1,000,000 ordinary shares issued and paid up, IDLC Finance Limited holds
999,998 ordinary shares of Tk 100 each.
8.1.2 Out of the total of 10,000 ordinary shares issued and paid up, IDLC Finance Limited subscribed
9,999 ordinary shares of Tk 100 each. I.Cons limited has been wound up voluntarily on November
2009.
8.2 Accounts receivable
Interest receivable (Note-8.2.1) 100,875,277 193,779,953

Other receivables 57,418,352 90,496,459
158,293,629 284,276,412
8.2.1 Interest receivable
Lease 49,065,223 125,887,212

Real estate finance 29,835,580 42,094,988
Car loans 3,489,173 6,452,227
Long- term finance 18,209,750 19,247,846
Personal loans 275,551 97,680
100,875,277 193,779,953
8.3 Advances, deposits and prepayments
Deposits and prepayments 1,223,506 1,297,159

Advance against expenses 28,715,863 43,442,049
Suspense account 413,932 2,679,866
Deposits against share of Grameenphone Ltd. - 7,118,800
30,353,301 54,537,874
Advances, deposits and prepayments are considered good but not secured by collateral.
106
2009 2008
Taka Taka
8.4 Inter - company receivables
This represents receivables from subsidiary companies.

IDLC Securities Limited 13,959,484 4,199,559
I. CONS Limited - 9,671,459
13,959,484 13,871,018
8.5 Deferred tax asset
Deferred tax has been calculated based on deductible temporary difference arising due to difference in the
carrying amount of the assets and its tax base in accordance with the provision of Bangladesh Accounting
Standard (BAS) 12 “Income Taxes”.
Deferred tax asset is arrived at as follows:

Carrying amount at Tax base (Taxable)/deductible
balance sheet Taka temporary difference
Taka Taka
Assets:
Fixed assets net of depreciation 161,582,762 159,197,761 (2,385,001)
Liabilities:
Employee gratuity 39,142,527 - 39,142,527
Total 200,725,289 159,197,761 36,757,526
Applicable tax rate 42.50%
Deferred tax asset as on December 31, 2009 15,621,949
Deferred tax asset as on December 31, 2008 17,751,467
Deferred tax expenses accounted for during the year 2,129,518
8.5 a Consolidated deferred tax asset
Tax collected under section 53BBB of Income Tax Ordinance 1984 is treated as final tax liability
under section 82C(2)(le) in case of income of IDLC Securities Limited. Accordingly, no additional
tax is imposed on the income of IDLC Securities Limited and no deferred tax has been accounted
for as no taxable/deductible temporary difference has been found to be applicable.
8(a) Consolidated other assets

I.Cons Limited - 2,276,567
586,525,045 497,175,774
107
2009 2008
Taka Taka
9 Borrowings from other banks and financial institutions
Inside Bangladesh (Note- 9.1) 6,029,180,391 4,145,174,744

Outside Bangladesh - -
6,029,180,391 4,145,174,744
9.1 Inside Bangladesh
Secured long term loans:

Bond and Debenture:
Mutual Trust Bank Ltd. 87,500,000 182,286,969
Marico Bangladesh Ltd. - 100,000,000
Dhaka Bank Ltd. 43,750,000 -
Prime Bank Limited 87,500,000 -
Mercantile Bank Ltd. 87,500,000 100,000,000
306,250,000 382,286,969
Long-term loans:
Islami Bank Bangladesh Ltd. 47,858,724 121,204,568
Mercantile Bank Ltd. - 11,666,665
Prime Bank Ltd. 122,500,000 262,500,000
Pubali Bank Ltd. 80,000,000 120,000,000
Bank Al-Falah Ltd. 64,000,000 94,333,330
BRAC Bank Ltd. 337,000,000 223,500,000
Uttara Bank Ltd. 182,473,810 235,104,214
Dhaka Bank Ltd. 92,500,000 172,500,000
One Bank Ltd. - 33,333,332
Social Islami Bank Limited 100,000,000 -
Mutual Trust Bank Ltd. 145,056,481 -
Trust Bank Ltd. 100,000,000 -
Woori Bank 200,000,000 200,000,000
Basic Bank Limited 41,080,463 50,000,000
Shahjalal Islami Bank 48,839,285 -
National Bank Limited - 96,509,075
1,634,308,763 1,725,651,184
Total secured long-term loans 1,940,558,763 2,107,938,153
Unsecured long-term loans
Bond and Debenture:
Sadharan Bima Corporation 320,000,000 320,000,000
108
2009 2008
Taka Taka
Long-term loans:
International Development Association (IDA) - 6,918,149
Kreditanstalt fÜr Wiederaufbau (KfW) 166,849,946 180,981,576
The Hong Kong & Shanghai Banking Corporation Ltd. 16,118,276 18,641,836
Eastern Bank Ltd. 1,929,959 1,929,959
Bangladesh Bank (Small Enterprise Refinancing Program) 672,878,740 558,866,192
Bangladesh Bank (Home Loan Refinancing Program) 523,306,483 168,963,887
Mercantile Bank Ltd. - 33,333,333
Bank Asia Ltd. 126,916,266 169,945,076
IPFF 82,763,007 -
1,608,081,162 1,172,257,601
Total unsecured long-term loan 1,928,081,162 1,492,257,601
Short-term and call loans:
Short-term loans
Citi Bank N.A. 400,000,000 180,000,000
Mutual Trust Bank Ltd. 50,000,000 -
BRAC Bank Limited 500,000,000 -
Dhaka Bank Ltd. 93,342,586 1,392,709
BRAC Bank Ltd. 47,197,880 48,139,345
National Bank Limited - 30,446,936
Standard Chartered Bank - 100,000,000
1,650,540,466 544,978,990
Call loans
Agrani Bank Limited 100,000,000 -
The Premier Bank Ltd. 150,000,000 -
Dutch Bangla Bank Ltd 90,000,000 -
Jamuna Bank Limited 70,000,000 -
Basic Bank Limited 100,000,000 -
510,000,000 -
Total short-term and call loans 2,160,540,466 544,978,990
Total borrowings 6,029,180,391 4,145,174,744
9.2 Security against borrowings from other banks and financial institutions
Secured 2,950,558,763 2,322,938,153

Unsecured 3,078,621,628 1,822,236,591
6,029,180,391 4,145,174,744
109
2009 2008
Taka Taka
Secured loans are covered by first equitable mortgage of all present and future immovable properties and by
floating charges on movable assets of the Company ranking pari-passu among the lenders. The Company has
a Pari Passu Security Sharing Agreement (PPSSA) among the secured lenders stipulating the procedure in the
sharing of the security provided by the Company. Loans repayable within one year have been placed under
current liabilities. Details of loans are as under:
9.3 Maturity grouping of borrowings from other banks and financial institutions
Payable on demand 510,000,000 -

Up to 1 month 777,915,400 170,344,422
Over 1 month but within 3 months 971,102,751 369,415,756
Over 3 months but within 1 year 1,081,021,113 1,085,573,495
Over 1 year but within 5 years 2,140,849,101 2,274,594,388
Over 5 years 548,292,026 245,246,683
6,029,180,391 4,145,174,744
10 Deposits and other accounts
Term deposits (Note-10.1) 9,779,933,274 8,248,679,428

Refundable deposits (Note-10.2) 579,835,183 530,686,903
10,359,768,457 8,779,366,331
10.1 Term deposits
This represents deposits received from institutions and individuals for a period not less than six months and
one year respectively.

Add: Deposits received during the year 4,378,024,000 3,728,820,387
12,626,703,428 11,985,680,455
Less: Matured/encashed during the year 2,846,770,154 3,737,001,027
10.1.1 Rate of interest
Rate of interest on term deposit receipts ranges from 8.5% to 13.5%
10.2 Refundable deposits
The Company takes deposits from the clients of lease and loan on signing of agreement, refundable at the
end of the contract period. Balance at December 31 stands as under:
Deposits against loan and lease rental 280,768,669 272,888,913

Deposits against financing as per term of agreements (Security deposits) 299,066,514 257,797,990
579,835,183 530,686,903
Security deposits are interest bearing while deposits against loan and lease are non interest bearing.
110
2009 2008
Taka Taka
10.3 Group-wise break-up of deposits and other accounts
Government - -
Bank 1,073,755,000 2,500,000,000
Other institutions 3,048,903,713 2,371,870,366
Individuals 5,657,274,561 3,376,809,062
9,779,933,274 8,248,679,428
10.4 Maturity analysis of deposits
Maturity analysis of Term deposits

Payable on demand - -
Up to 1 month 268,773,423 219,921,513
Over 1 month but within 6 months 3,221,825,641 1,186,347,090
Over 6 months but within 1 year 3,640,897,434 2,944,990,487
Over 1 year but within 5 years 2,252,778,465 3,252,867,470
Over 5 years but within 10 years 395,658,311 644,552,868
9,779,933,274 8,248,679,428
Maturity analysis of Refundable deposits
Payable on demand - -
Up to 1 month 64,300,668 21,811,679
Over 1 month but within 6 months 61,632,844 35,297,763
Over 6 months but within 1 year 67,946,349 50,268,165
Over 1 year but within 5 years 385,670,052 415,392,756
Over 5 years but within 10 years 285,270 7,916,540
579,835,183 530,686,903
11 Other liabilities
Payable and accrued expenses (Note-11.1) 1,422,587,087 1,116,392,333

Provision for income tax (Note 11.2) 775,362,544 582,120,691
Inter-company payables (Note-11.3) 2,422,245 8,325,853
Liabilities under finance lease (Note-11.4) 5,146,212 6,355,117
Portfolio investors' fund (Note-11.5) 155,784,459 32,444,486
Fund from CIDA for LEIC project - 12,581,868
Interest suspense account (Note-11.6) 45,133,803 40,816,964
Provision for doubtful accounts and future losses (Note-11.7) 877,700,432 733,292,897
Unclaimed dividend 2,317,263 1,923,500
3,325,596,572 2,568,447,887
111
2009 2008
Taka Taka
11.1 Payable and accrued expenses
Receipt against leases 183,874,486 144,789,354

Liabilities for expenses 1,037,063,209 830,139,879
Liabilities for other finance 201,649,392 141,463,100
1,422,587,087 1,116,392,333
11.2 Provision for income tax
Provision
Balance at January 1 1,032,881,141 734,902,820
Add: Provision made during the year 441,974,536 297,978,321
1,474,855,677 1,032,881,141
Settlement of previous year's tax liability - -
Advance tax
Add: Payment made during the year:
Under sections 64 and 74 of ITO 1984 219,846,703 178,520,253
Deduction at source 15,585,196 13,724,245
Others 13,300,784 -
248,732,683 192,244,498
699,493,133 450,760,450
Less: Adjustment during the year - -
699,493,133 450,760,450
Net balance at 31 December 775,362,544 582,120,691
11.2a Consolidated provision for income tax

449,404,958 301,139,625
11.3 Inter-company payables
IDLC Securities Limited (Note-11.3.1) 2,422,245 1,038,353

I. CONS Limited - 7,287,500
2,422,245 8,325,853
112
2009 2008
Taka Taka
11.3.1 The amount had been paid by IDLC Securities Limited on account of office rent, fixed assets purchase, CDBL
charges and training expenses on behalf of IDLC Finance Limited.
11.4 Liabilities under finance lease
Liabilities under finance lease represent liabilities against certain motor vehicles taken under finance lease.
Details of which are given below:

Add: Addition during the year 1,737,413 -
8,092,530 9,172,130
Less: Repayment during the year 2,946,318 2,817,013
11.4.1 Aging analysis of liabilities under finance lease
Up to one year 2,355,614 2,386,998

Above one year to three years 2,790,598 3,968,119
Above three years to five years - -
5,146,212 6,355,117
The average lease term of the vehicles taken under finance lease is 48 months and all leases are on fixed
repayment basis. The Company’s obligations under finance lease are secured by the lessor’s charge over the
lease assets.
11.5 Portfolio investors’ fund
This represents the balance of deposits made with the Company by the portfolio investors to take margin
loan and buy marketable securities. The balance of fund has been arrived at as follows:
Deposit made by the portfolio investors for purchase of securities 6,774,299,430 1,579,860,102
Margin loan extended for purchase of securities 5,861,960,297 3,065,955,890
12,636,259,727 4,645,815,992
Less: Investment in securities 11,665,977,569 3,936,632,076

Interest and other charges 814,497,699 676,739,430
12,480,475,268 4,613,371,506
Balance of fund 155,784,459 32,444,486
113
2009 2008
Taka Taka
11.6 Interest suspense accounts
Lease income earned and interest on term finance and car loan overdue beyond three months period and
interest on real estate finance beyond six months period are not recognised as revenue and credited to inter-
est suspense account. Product wise details are given below:
On lease finance 19,880,168 28,322,056

On real-estate finance 14,542,624 7,197,892
On term finance 8,302,562 3,477,043
On Car loans 2,408,449 1,819,973
45,133,803 40,816,964
11.7 Provision for doubtful accounts and future losses

Provision required for the year 243,197,858 160,040,358
Provision released during the year (98,790,323) (40,204,805)
Provision charged for the year 144,407,535 119,835,553
Write off during the year - -
11.7(i) Allocation:
Main operation 116,447,491 103,049,551

Merchant Bank 27,960,044 16,786,002
144,407,535 119,835,553
11.7(ii) Provision charged for the year
Provisions for bad and doubtful loans, advances and leases 109,247,477 100,621,549
Provisions for unclassified loans, advances and leases 34,844,605 11,536,807
Provisions for diminutions in value of investments 315,453 7,677,197
144,407,535 119,835,553
11.7(ii)a Consolidated provision charged for the year
Provisions for bad and doubtful loans, advances and leases 114,503,207 100,621,549
Provisions for unclassified loans, advances and leases 34,844,605 11,536,807
Provisions for diminutions in value of investments 465,011 7,677,197
149,812,823 119,835,553
114
2009 2008
Taka Taka
11.7(iii) Product wise break up of provision:
Lease 543,308,680 513,525,888

Long- term finance 145,957,283 77,736,606
Real estate finance 72,615,236 52,093,270
Car loan 14,032,628 11,673,855
Investment in shares 5,643,772 9,947,170
Personal Loan 2,136,946 320,465
Short term finance 35,386,284 37,336,084
Margin loan 58,619,603 30,659,559
877,700,432 733,292,897
11(a) Consolidated other liabilities
IDLC Finance Limited (Note - 11) 3,323,174,327 2,560,122,034

I. Cons Limited - 297,436
3,899,246,528 2,805,676,347
12 Share capital
Authorised
10,000,000 ordinary shares of Taka 100 each 1,000,000,000 1,000,000,000
Issued, subscribed and paid-up

3,000,000 ordinary shares of Taka 100 each 300,000,000 250,000,000
(2008: 2,500,000 ordinary shares of Taka 100 each)
Paid-up share capital as on December 31, 2009 comprises the following:
Composition of shareholding:
115
2009 2009 2008
% of Number of Taka Taka
holding shares
Sponsor shareholders:
Foreign
Korea Development Financing
Corporation (KDFC) - - - 50,000,000
Kookmin Bank, South Korea - - - 25,000,000
- - - 75,000,000
Domestic
The City Bank Limited (CBL) 28.39 851,735 85,173,500 24,254,600
Sadharan Bima Corporation (SBC) 7.62 228,710 22,871,000 19,047,500
36.01 1,080,445 108,044,500 43,302,100
36.01 1,080,445 108,044,500 118,302,100
General shareholders:
Mercantile Bank Limited 7.50 225,100 22,510,000 18,750,000
Eskayef Bangladesh Limited 8.00 240,000 24,000,000 20,000,000
Reliance Insurance Co. Ltd. 7.00 210,000 21,000,000 17,505,000
Eastern Bank Limited 6.00 180,000 18,000,000 -
Transcraft Limited 4.01 120,398 12,039,800 10,033,200
Other Institution/Corporate 13.74 412,270 41,227,000 25,368,000
Individuals 17.73 531,787 53,178,700 40,041,700
63.99 1,919,555 191,955,500 131,697,900
Total 100.00 3,000,000 300,000,000 250,000,000
Distribution of shareholders:
Classification of shareholdings as required by Regulation 37 of the Listing Regulations of Dhaka Stock Ex-
change Ltd. are as follows:
Number of Number of Percentage

Number of share shareholders shares of holdings
Less than 500 2,034 167,761 5.59%
501 to 5,000 125 198,000 6.60%
5,001 to 10,000 14 93,658 3.12%
10,001 to 20,000 9 118,155 3.94%
20,001 to 30,000 5 133,600 4.45%
30,001 to 40,000 1 39,600 1.32%
40,001 to 50,000 2 82,327 2.74%
50,001 to 100,000 2 110,956 3.70%
100,001 to 300,000 7 2,055,943 68.53%
2,199 3,000,000 100.00%
The shares were listed with Dhaka Stock Exchange Ltd. on March 20, 1993, and with Chittagong Stock Ex-
change Ltd. on November 25, 1996, and quoted at Taka 3,703 and Taka 3,680 at Dhaka Stock Exchange Ltd.
and Chittagong Stock Exchange Ltd. respectively at December 30, 2009.
116
2009 2008
Taka Taka
13 Share premium
This represents premium amount over par value of shares received against issue of 75,000 shares in 1993 @
Taka 50 per share.
14 Statutory reserves
Balance at January 1 - -
Add: Transferred from General Reserve 296,250,000 -
Add: Transferred on appropriation of profit 105,000,000 -
Balance at December 31 401,250,000 -
15 General reserve
Balance at January 1 1,017,500,000 847,500,000

Add: Transferred on appropriation of profit 90,000,000 170,000,000
Less: Transferred to Statutory Reserve 296,250,000 -
Balance at December 31 811, 250,000 1,017,500,000
16 Business commitments and contingencies

In the normal course of business, the Company makes various commitments and incurs certain contingent
liabilities. No material losses are anticipated as a result of these transactions. These contingent liabilities and
business commitments are quantified below:
16.1 Contingent liabilities

Indemnity Bonds 8,899,650 12,427,529
Other contingent liabilities - -
24,598,313 35,156,302
16.2 Other commitments
Lease and term finance commitments outstanding at

December 31 296,265,984 139,103,477
Real estate finance commitments outstanding at
December 31 311,937,576 225,766,717
Car loan commitments outstanding at December 31 16,301,000 24,110,000
Personal loan commitments outstanding at December 31 1,590,000 3,100,000
626,094,560 392,080,194
117
2009 2008
Taka Taka
16.3 Money for which the FI is contingently liable in respect of guarantee given in favoring
Directors or officers - -
Government - -
Banks and other financial institutions - -
Others 6,698,663 8,478,773
6,698,663 8,478,773
16.4 Capital expenditure commitments
There was no capital expenditure contracted but not incurred or provided for at December 31, 2009. There
was no material capital expenditure authorised by the Board but not contracted for at December 31, 2009.
16.5 Unacknowledged debt
The Company had no claim, legal or other, against it which has not been acknowledged as debt at the bal-
ance sheet date.
16.6 Disbursements
During the year the Company contracted and disbursed the following amounts :
2009 2008
Contracts/ Execution/ Contracts/ Execution/
sanction disbursement sanction disbursement
Tk. Tk. Tk. Tk.
Lease and term finance 4,045,904,530 3,749,638,546 3,550,078,997 3,410,975,520

Real estate finance 2,150,489,163 1,838,551,587 1,837,800,000 1,612,033,283
Car loans 164,364,000 148,063,000 148,610,000 124,500,000
Personal loans 81,113,500 79,523,500 53,230,000 50,130,000
6,441,871,193 5,815,776,633 5,589,718,997 5,197,638,803
118
2009 2008
Taka Taka
17 Income statement
Income:
Interest, discount and similar income (Note-17.1) 2,769,939,116 2,282,729,507
Dividend income (Note-20) 80,204,576 32,763,461
Fees, commission and brokerage (Note-21) 225,342,522 135,332,714
Other operating income (Note-22) 90,629,521 63,109,295
3,166,115,735 2,513,934,977
Expenses:
Interest expenses (Note-19) 1,619,153,280 1,523,299,164
Administrative expenses (Note-17.2) 293,941,984 231,820,872
Other operating expenses (Note-33) 105,368,194 51,042,467
Depreciation on assets (Note-32) 40,610,363 34,865,952
2,059,073,821 1,841,028,455
1,107,041,914 672,906,522
17.1 Interest, discount and similar income
Interest income (Note -18) 2,561,496,892 2,144,365,885

Gain on sale of marketable securities (Note - 20) 201,309,161 134,801,983
Income from investment in bonds (Note - 20) 7,133,063 3,561,639
2,769,939,116 2,282,729,507
17.2 Administrative expenses
Salary and allowances (Note-23) 212,923,526 156,516,188

Rent, taxes, insurance, electricity, etc. (Note-24) 31,015,941 25,308,999
Legal expenses (Note-25) 1,851,803 1,367,814
Postage, stamp, telecommunication, etc. (Note-26) 9,902,124 7,279,682
Stationery, printing, advertisement, etc. (Note-27) 24,802,902 21,761,561
Managing Director's salary and benefits (Note-28) 1,564,600 7,502,092
Directors' fees (Note-29) 455,400 323,775
Auditors' fees (Note-30) 378,050 216,300
Repair of Company's assets (Note-31) 11,047,638 11,544,461
293,941,984 231,820,872
17.3 Allocation of interest expenses

Main Operation 1,099,936,290 1,230,271,264
1,619,153,280 1,523,299,164
119
2009 2008
Taka Taka
17.4 Allocation of administrative expenses

Main Operation 270,107,485 215,752,107
293,941,984 231,820,872
17.5 Allocation of other operating expenses

Main Operation 58,234,957 35,257,494
105,368,194 51,042,467
17.6 Allocation to Merchant Banking operation

Indirect expenses have been allocated based on number of employees working in Merchant Banking Divi-
sion.
18 Interest income
Interest income from lease finance 608,716,365 649,261,214

Interest income from real estate finance* 655,814,001 535,559,437
Interest income from term finance 459,182,777 400,969,778
Interest income from short term finance 41,633,129 41,799,170
Interest income from car loans 56,171,010 54,623,539
Interest income from personal loans 11,299,363 3,011,270
Interest income from margin loan to portfolio investors 601,036,262 316,722,769
2,433,852,907 2,001,947,177
Interest income on balance with other banks and financial institutions 96,951,314 94,760,850
Interest from call loans 74,410 6,866,250
Interest income from loan against deposits 30,618,261 40,791,608
2,561,496,892 2,144,365,885
* Interest rate for real estate finance has been calculated on monthly amortization method since 22 February
2009. Prior to February 22, 2009, interest rate was calculated based on annual amortization method which
resulted in higher effective rate under monthly amortization method.
18 a Consolidated interest income
IDLC Finance Limited (Note-18) 2,561,496,892 2,144,365,885

2,579,797,919 2,151,348,832
120
2009 2008
Taka Taka
19 Interest expenses
Interest on term deposits 1,100,694,288 1,042,464,543

Interest on borrowings 410,730,445 413,255,589
Interest on Secured Zero Coupon Bonds 21,185,040 -
Interest on Security Deposit 35,758,436 30,570,960
Interest on Call Loan 36,686,804 23,058,302
Others 14,098,267 13,949,770
1,619,153,280 1,523,299,164
19a Consolidated interest expenses
IDLC Finance Limited (Note-19) 1,619,153,280 1,523,299,164

1,686,826,371 1,552,625,118
20 Investment income
Gain on sale of marketable securities 201,309,161 134,801,983

Dividend income 80,204,576 32,763,461
Income from investment in bonds 7,133,063 3,561,639
288,646,800 171,127,083
20a Consolidated investment income

324,105,895 174,524,169
21 Commission and brokerage
Agency fees 3,181,250 4,339,144

Arrangement fees 7,000,000 12,154,475
Advisory fees 1,699,835 500,000
Underwriting Commission 2,606,862 -
Documentation fees 482,000 443,000
Custodial fees 12,500 12,500
Issue management fees 3,300,000 397,700
Portfolio management fees 110,546,637 69,597,883
Settlement charges 96,513,438 47,888,012
225,342,522 135,332,714
121
2009 2008
Taka Taka
21a Consolidated commission and brokerage
IDLC Finance Limited (Note-21) 225,342,522 135,332,714

603,549,797 342,700,154
22 Other operating income
Realisation of late payment interest & others 45,110,665 25,963,145

Transfer price/ gain at the time of expiry of lease 8,604,665 5,249,379
Application, processing and documentation fees 9,126,131 10,149,391
Service charges 19,846,116 13,811,497
Fees for management of LEIC 1,206,415 4,237,863
Gain/(Loss) on disposal of fixed assets 2,558,912 721,212
Miscellaneous income 4,176,617 2,976,808
90,629,521 63,109,295
22a Consolidated other operating income

IDLC Securities Limited 1,474,342 19,810
92,103,863 63,129,105
23 Salaries and allowances 212,923,526 156,516,188
23.1 Salary and allowances
Salary and allowances include annual contribution of Tk. 6,257,159 to Provident Fund and provision of Tk.
4,948,349 for Gratuity Fund.
23a Consolidated salaries and allowances

236,040,638 176,328,817
24 Rent, taxes, insurance, electricity, etc.
Rent, rate and taxes 19,703,485 15,558,699

Insurance 2,238,410 1,942,350
Power and electricity 9,074,046 7,807,950
31,015,941 25,308,999
122
2009 2008
Taka Taka
24a Consolidated rent, tax, insurance, electricity etc.

39,371,001 29,207,660
25 Legal expenses
Renewal and registration 886,248 904,189

Other professional charges 965,555 463,625
1,851,803 1,367,814
25a Consolidated legal expenses

2,802,508 1,759,699
26 Postage, stamp, telecommunication, etc.
Postage 289,935 269,116

Telecommunication and internet etc. 9,612,189 7,010,566
9,902,124 7,279,682
26a Consolidated postage, stamps, telecommunication etc.

10,429,700 7,869,945
27 Stationery, printing, advertisements, etc.
Stationery and printing etc.

Printed stationery 9,641,005 7,837,876
Computer consumable stationery 353,750 376,800
9,994,755 8,214,676
Advertisement and publicity 14,808,147 13,546,885
24,802,902 21,761,561
123
2009 2008
Taka Taka
27a Consolidated stationery, printing, advertisements, etc.

28,154,795 24,030,673
28 Managing Director’s salary and benefits
Basic pay 975,000 3,900,000

Allowances 492,100 2,237,092
Bonus - 975,000
Company's contribution to provident fund 97,500 390,000
1,564,600 7,502,092
29 Directors’ fees
Honorium for attending meeting 408,000 264,000

Incidental expenses for attending meeting 47,400 59,775
455,400 323,775
29.1 Directors’ fees
Directors remuneration for attending each board meeting during the year was Tk. 4,000 per meeting/Direc-
tor. No Director has been paid any remuneration for rendering any special services during the year.
30 Auditors’ fees
Statutory annual audit fees (including VAT) 284,000 216,300

Other audit fees 94,050 -
378,050 216,300
30a Consolidated fees for auditors
IDLC Finance Limited (Note-30) 378,050 216,300

545,250 386,925
124
2009 2008
Taka Taka
31 Depreciation and repair of company’s assets
Freehold assets (Note-7) 37,707,377 31,277,202

Leasehold assets (Note-7) 2,902,986 3,588,750
40,610,363 34,865,952
Repair and maintenance
For premises 412,586 1,113,196
For vehicles 2,863,791 1,503,026
For computers and computers accessories 7,771,261 8,928,239
11,047,638 11,544,461
51,658,001 46,410,413
31a Consolidated depreciation and repair of company’s assets

61,172,830 50,660,271
32 Other expenses
Bank charges 991,011 819,557

Books and periodicals 144,079 155,809
Car expenses 6,392,430 5,843,012
Donations and subscriptions 970,426 944,472
Medical expenses 62,202 22,410
Welfare expenses 1,748,462 2,157,282
Entertainment 5,074,039 4,012,388
Consultancy fees 3,134,607 2,866,677
Office service expenses 11,228,498 9,232,416
Training expenses 1,149,173 1,612,239
Travel and conveyances 5,669,928 3,970,794
Brokerage Charges 12,366,525 3,339,075
CDBL charges 41,121,808 12,671,491
Loss on disposal of lease assets 12,694,044 842,140
Repossession Fees and others 2,620,962 2,552,705
105,368,194 51,042,467
32a Consolidated other expenses

108,967,717 53,544,227
125
2009 2008
Taka Taka
33 Tax expenses
33.1 Current tax

Provisions for current tax has been made on the basis of the profit for the year as adjusted for taxation pur-
poses in accordance with the provisions of Income Tax Ordinance, 1984 and amendments made thereto. The
current tax rate for the Company is 42.5% on taxable income.
33.2 Deferred tax

Deferred tax is provided using the balance sheet method for all temporary differences arising between the
tax base of assets and liabilities and their carrying values for financial reporting purposes as per Bangladesh
Accounting Standard 12 “Income Tax”.
33.3 Average effective tax rate
The average effective tax rate is calculated below as per Bangladesh Accounting Standard 12 “Income Tax”.
Tax expenses 444,104,054 298,094,006

Accounting profit before tax 962,634,379 553,070,969
Average effective tax rate 46.13% 53.90%
33.3(a) Consolidated average effective tax rate

The average effective tax rate is calculated below as per Bangladesh Accounting Standard 12 “Income Tax”.
Tax expenses 451,534,476 301,255,310

Accounting profit before tax 1,273,413,841 707,627,505
Average effective tax rate 35.46% 42.57%
34 Earnings per share (EPS)

Earnings per share as shown in the face of the Profit and Loss Account is calculated in accordance with Ban-
gladesh Accounting Standard 33: “Earnings Per Share”.
Basic earnings per share has been calculated as follows:
Earnings attributable to ordinary shareholders (Net profit after tax) 518,530,325 254,976,963
Weighted average number of ordinary shares outstanding during the year 3,000,000 3,000,000
Basic earnings per share 172.84 84.99
No diluted earning per share is required to be calculated for the year as there was no convertible securities for
dilution during the year.
126
2009 2008
Taka Taka
34(a) Consolidated earnings per share (EPS)
Earnings per share as shown in the face of the consolidated Profit and Loss Account is calculated in accor-
dance with Bangladesh Accounting Standard 33: “Earnings Per Share”.
Basic earnings per share has been calculated as follows:
Earnings attributable to ordinary shareholders (Profit after tax

and minority interest) 821,878,658 406,371,882
Weighted average number of ordinary shares outstanding dur-
ing the year 3,000,000 3,000,000
Basic earnings per share 273.96 135.46
35 Related party disclosure
a.Particulars of Directors and their interest in different entities
Reported
Name of the firms/companies in
share of hold-
SL Status in which interested as proprietor, Status in interested
Name of Directors ing/ interest in
no. IDLC partner, director, managing agent, entities
the concern as
guarantor, employee etc.
on 31.12.09
1. Mr. Anwarul Huq Chairman Finaccord Trading Limited Chairman & CEO 3.10%
2. Mr. Aziz Al Kaiser Director The City Bank Limited Chairman 4.58%
Star Particle Board Mills Limited MD 75.00%
Star Vegetable Oils Mills Limited MD 75.00%
Danish Condensed Milk (BD) Ltd Director 15.00%
Rubel Steel Mills Limited Director 15.00%
Danish Foods Limited Director 15.00%
Partex Furniture Industries Ltd MD 75.00%
Partex Sugar Mills Limited Director 15.00%
Partex Laminates Limited MD 75.00%
Partex Real Estate Limited MD 15.00%
Partex Limited MD 10.00%
Corvee Maritime Co. Limited MD 75.00%
Partex Builders Limited MD 75.00%
Fairhope Housing Limited MD 80.00%
Ferrotechnic Limited Director 15.00%
Fotoroma Limited Director 15.00%
Danish Milk Bangladesh Limited Director 15.00%
Russel Steel Mills Limited Director 15.00%
127
Reported
share of hold-
the concern as
on 31.12.09
Danish Distribution Network Ltd Director 15.00%
Danish Dairy Firm Limited Director 15.00%
Dhaka com Limited Director 15.00%
Janata Insurance Co. Limited Director 2.00%
Partex Housing Limited Director 50.00%
3. Mr. Rubel Aziz Director The City Bank Limited Director 4.63%
Amber Cotton Mills Limited Director 2.08%
Partex Beverage Limited MD 0.20%
Partex Plastics Limited MD 37.50%
Partex Sugar Mills Limited Director 15.00%
Partex Energy Limited Director 37.50%
Partex Rotor Spinning Mills Director 37.50%
Limited
Partex Denim Limited Director 15.00%
Plastic Accessories Limited MD 37.50%
Partex Plastics Furniture Limited MD 37.50%
Partex Properties Limited MD 35.00%
Partex Foundry Limited MD 40.00%
New Horizon Farms Limited MD 50.00%
New Era Milk Processing Limited MD 50.00%
Partex Real Estate Limited Director 15.00%
Partex Rotor Limited Director 35.00%
Dhaka COM Limited Director 15.00%
Janata Insurance Co. Limited Chairman 1.33%
Partex Spinning Mills Limited Director 25.00%
Partex Ceramic Limited Director 25.00%
4. Mr. Kazi
Director The City Bank Limited MD & CEO -
Mahmood Sattar
Nominated
Unique Hotel & Resorts Limited -
Director of CBL
5. Ms. Meherun Haque Director The City Bank Limited Director 0.29%
Phoenix Insurance Company Limited Director 1.68%
6. Mr. Yongbok Jo Director Nomited by The City Bank Ltd. - -

7. Mr. Md. Rezaul Director Sadharan Bima Corporation MD (Additional) -
Karim
128
Reported
share of hold-
the concern as
on 31.12.09
Investment Corporation of Director- -
Bangladesh Nominated by SBC
Central Depository Bangladesh Director- -
Limited Nominated by SBC
National Housing Finance & Director- -
Investments Limited Nominated by SBC
Aramit Limited Director- -
Nominated by SBC
Bangladesh Insurance Academy Director- -
Nominated by SBC
8. Mr. Md. Habibur Director Transcom Group Chief Operating -

Rahman Mollah Officer
9. Mr. A.K.M. Director Mercantile Bank Limited Director 0.42%

Shaheed Reza
Allure Apparel Limited Chairman 33.00%
Fashion Plus Limited Chairman 25.00%
Reza Fabrics Limited Chairman 25.00%
Fashion Exports Limited. Chairman 100.00%
Global Insurance Limited Director 0.16%
Reza Fashions Limited Chairman 25.00%
Global Fine Ceramics Limited Chairman 10.00%
b. Significant contract where FI is party and wherein Directors have interest - Nil
c. Related party transactions
Parties are considered to be related if one party has the ability to control the other party or exercises
significant influence over the other party in making financial and operational decision and include as-
sociated companies with or without common Directors and key management positions. The Company
has entered into transaction with other related entities in normal course of business that fall within
the definition of related party as per Bangladesh Accounting Standard 24: “ Related Party Disclosures.”
Transactions with related parties are executed on the same terms, including interest rate and collateral,
as those prevailing at the time for comparable transactions with other customers of similar credentials
and do not involve more than a normal risk.
Details of transactions with related parties and balances with them as at December 31, 2009 were as
follows:
129
130
Balance at year end
Name of the related party Transaction nature Relationship Balance as at January 1, 09
Addition Adjustment receivable /(payable)
Taka Taka Taka Taka
ANNUAL REPORT 2009

The City Bank Ltd Short term loan Shareholder (150,000,000) (350,000,000) (500,000,000)
Sadharan Bima Corp Debenture Sponsor shareholder (320,000,000) - - (320,000,000)
Mercantile Bank Ltd LT secured loan General shareholder (11,666,665) - 11,666,665 -
Mercantile Bank Ltd LT unsecured loan General shareholder (33,333,333) - 33,333,333 -
Mercantile Bank Ltd Zero coupon bond General shareholder (100,000,000) - 12,500,000 (87,500,000)
Partex group Lease/Loan Common Directorship 65,355,365 23,621,710 (17,194,333) 71,782,742
Transcom group Lease/Loan Shareholder 111,848,075 41,711,390 (40,473,162) 113,086,303
(437,796,558) (284,666,900) (167,497) (722,630,955)
d. Share issued to Directors and executives without consideration or exercisable at a discount - Nil
e. Lending policy to related parties Related parties are allowed Loans and Advances as per General Loan Policy of the Bank.
f. Loans, advances and leases to Directors and their related concern
Name of the related party Transaction nature Classification status Provision kept Security amount
Partex group Lease/Loan Standard 1,130,863 5,983,175
Transcom group Lease/Loan Standard 719,908 -
g. Investment in the Securities of Directors and their related concern - Nil
36 Receivable from Directors

The Company does not have any receivable from any of the Directors of the Company as at December 31, 2009.
37 Disclosure on Audit committee
a. Particulars of audit committee
The audit committee of the Board was duly constituted by the Board of Directors of the Company in accor-
dance with the Securities and Exchange Commission notification ref no. SEC/CMMRRCD/2006-158/Admin/02-
08 dated February 20, 2006.
The Audit Committee of the Board of Directors consisted of the following 4 (four) members of the Board:
Name Status at the Company Status at committee

Mr. Md. Habibur Rahman Mollah, FCA Director Chairman
Mr. Anwarul Huq Chairman Member
Mr. Rubel Aziz Director Member
Mr. Rezaul Karim Director Member
The company secretary is to act as Secretary of the Audit Committee.
b. Meetings held by the committee during the year by date:
Meeting No Held on
13th 3-Mar-2009
14th 25-Nov-2009
15th 6-Dec-2009
16th 9-Dec-2009
c. The audit committee has discussed the following issues during the year 2009:
i) The Audit Committee reviewed the report of the Audit Committee and approved its publication
in the Annual Report 2008.
ii) The committee reviewed and approved the audit plan for 2009.
iii) The Audit Committee also reviewed the Management Letter on Interim Audit 2008, annual audit
2008 and Bangladesh Bank Inspection report 2008.
38 Foreign remittance
There were no foreign remittance during the year 2009.
39 Number of employees
The Company paid an aggregate amount more than Taka 36,000 p.a. to 174 employees and more than Tk.
3,000 per month to 116 employees who were in employment for full year or part of the year.
131
40 Subsequent events
40.1 Formation of separate subsidiary company for existing Merchant Banking activities
As per instruction letter no. SEC/Reg/MB/2009/446, dated December 21, 2009 of the Securities and Ex-
change Commission, the Company at its 170th Board meeting held on February 2, 2010 has approved to
form a separate subsidiary in the name and style “IDLC Investments Limited” within March 31, 2010, subject
to the approval of regulatory authorities to carry on its existing Merchant Banking activities. The authorised
and paid up capital of the proposed subsidiary would be Tk. 300 crore and Tk. 40 crore, respectively, and
the existing assets of the Merchant Banking operation will be transferred to the new subsidiary at book
value basis.
40.2 Dividend for the year 2009
The Board of Directors at the 171st Board Meeting held on March 16, 2010, recommended to the sharehold-
ers a cash dividend of Tk. 10 per share of Tk 100 each (amounting to Tk. 30,000,000) and a stock dividend
(bonus shares) @ 100% i.e. one bonus share for every one fully paid shares (1:1) of Tk. 100 each (amounting
to Tk. 300,000,000). This will be considered for approval by the shareholders at the 25th Annual General
Meeting (AGM) to be held on April 19, 2010.
41 General
41.1 The Company publishes its quarterly accounts within the following months of quarter ended of each year
41.2 The Company does not have any restriction on distribution and payment of dividends
41.3 During the year under report, no matters were submitted to a vote of shareholders of the Company
132
Financial Statements of
IDLC Securities Limited
Audited Financial Statements of
We have audited the accompanying Balance Sheet of IDLC Securities Ltd. for the year ended December 31, 2009 and
the related Income Statement, Statement of Changes in Equity and Cash Flow Statement for the year then ended.
The preparation of these financial statements are the responsibility of the management of IDLC Securities Ltd. Our
responsibility is to express an independent opinion on these financial statements based on our audit.
We conducted our audit in accordance with Bangladesh Standard on Auditing (BSA). Those standards require that
we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of
materials misstatement. An audit includes examining on a test basis, evidence supporting the amounts and disclo-
sures in the financial statements. An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluation of the overall financial statement presentation. We believe
that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements, prepared in accordance with Bangladesh Accounting Standards (BAS), give
a true and fair view of the state of the Company’s affairs for the year ended December 31, 2009 and of the results of
its operations and its cash flow for the year then ended and comply with the Company’s Act, 1994, the Securities and
Exchange rules 1987 and other applicable laws and regulations.
We also report that:

a) We have obtained all the information and explanations which to the best of our knowledge and belief were
necessary for the purpose of our audit and made due verification thereof;
b) In our opinion, proper books of account as required by law have been kept by the Company so far as it ap-
peared from our examination of those books;
c) The Company’s Balance Sheet and Income Statement dealt with by the report are in agreement with the books
of accounts.
Dated: Dhaka (Masih Muhith Haque & Co.)

March 15, 2010 Chartered Accountants.
134
Balance Sheet
As at December 31, 2009
2009 2008
Notes
Taka Taka
SOURCES OF FUNDS
Shareholder's Equity
Share capital 5 100,000,000 50,000,000
Retained earnings 6 492,377,135 189,028,195
Total s ources of funds 592,377,135 239,028,195
APPLICATION OF FUNDS
Fixed assets (at cost less accumulated depreciation) 7 35,497,057 16,839,938

Intangible assets 8 471,305 158,362
Membership at cost 9
DSE 15,225,000 15,225,000
CSE 3,451,000 3,451,000
18,676,000 18,676,000
Current assets
Advances, Deposits and Prepayments 10 13,319,758 5,872,493
Advance income tax 11 2,563,079 1,450,329
Investment in securities 12 105,114,595 -
Accounts receivable 13 352,682,653 171,282,316
Margin loan to clients 14 22,433,943 -
Cash & cash equivalents 15 634,213,508 332,439,525
1,130,327,536 511,044,663
Current liabilities
Accounts payable 16 576,847,511 300,194,489
Provision for expenses 17 10,341,964 7,496,278
Provision for future losses 18 5,405,288 -
592,594,763 307,690,767
Net current assets 537,732,773 203,353,895
Total application of funds 592,377,135 239,028,195
Chairman/Director Managing Director Masih Muhith Haque & Co.

Dated: Dhaka
March 15, 2010
135
Income Statement
For the year ended December 31, 2009
2009 2008
Particulars Notes
Taka Taka
Operating income
Brokerage commission 19 378,207,275 195,547,415
Capital gain from sale of securities 20 85,258,963 3,194,086
Other operating income 21 1,313,400 943,400
464,779,638 199,684,901
Less : Operating expenses 22 69,343,613 30,084,849
Net income from operation 395,436,025 169,600,052
Add : Other income 23 18,662,001 7,070,935
Total income 414,098,026 176,670,987
Less : Office & administrative expenses 24 45,379,139 21,139,442
Provision for future losses 18 5,405,288 -
Profit before financial expenses 363,313,599 155,531,545
Less : Financial expenses 25 2,534,237 1,177,349
Net profit/ (loss) before income tax 360,779,362 154,354,196
Provision for Income tax 7,430,422 3,059,683
Net profit/(loss) after tax 353,348,940 151,294,513

Dated: Dhaka
March 15, 2010
136
Statement of Changes in Equity
Share Retained
Total
Particulars capital earnings
Taka Taka Taka
Balance as on January 01, 2008 50,000,000 50,233,682 100,233,682

Net profit during the period
(January 01, 2008 to Decmber 31, 2008) - 151,294,513 151,294,513
Payment of Dividend - (12,500,000) (12,500,000)
Balance as on December 31, 2008 50,000,000 189,028,195 239,028,195
Net profit during the period
(January 01, 2009 to Decmber 31, 2009) - 353,348,940 353,348,940
Issue of Bonus Share 50,000,000 (50,000,000) -
Balance as on December 31, 2009 100,000,000 492,377,135 592,377,135

Dated: Dhaka
March 15, 2010
137
Cash Flow Statement
2009 2008
Particulars
Taka Taka
A. Cash flow from operating activities

Net profit during the year 353,348,940 151,294,513
Add: Amount considered as non cash items:
Depreciation & amortization charged 6,762,793 3,108,459
Provision for income tax 2,489,059 3,059,683
Provision for future losses 5,405,288 -
Provision for expenses 356,627 717,919
15,013,767 6,886,061
Changes in workings capital components
(Increase)/decrease Accounts receivable (181,400,338) 5,098,981
(Increase)/decrease Margin loan to Clients (22,433,943) -
(Increase)/decrease Investment in securities (105,114,595) -
(Increase)/decrease Advances, deposits and prepayments (7,447,265) (3,556,853)
(Increase)/decrease Advance Income Tax (1,112,750) (706,431)
Increase/(decrease) Accounts payable 276,653,022 21,884,611
Net cash flows from operating activities 327,506,838 180,900,882
B. Cash flow from investing activities
Fixed assets acquisition (25,732,855) (7,974,750)
Net cash flows from investing activities (25,732,855) (7,974,750)
C. Cash flows from financing activities
Dividend paid - (12,500,000)
Net cash used in financing activities - (12,500,000)
D. Net cash increase/ (decrease) (A+B+C) 301,773,983 160,426,132
E. Cash and cash equivalents at the beginning of the period 332,439,525 172,013,393
F. Cash and cash equivalents at the end of the period 634,213,508 332,439,525
Closing balance represents
Cash in hand 50,000 20,000
Cash at bank 628,691,558 322,103,269
Fixed deposits 5,471,950 10,316,256
634,213,508 332,439,525
138
36, Dilkusha C/A (13th Floor)
Dhaka- 1000
Notes to the Accounts

1 Company and its activities
1.1 Legal status of the Company
IDLC Securities Limited (IDLCSL) was incorporated in Bangladesh as a private limited Company on April
19, 2006 vide registration no. C-61319 (3328)/06 under The Companies Act 1994. The Company has
started its operation from September 18, 2006.
1.2 Nature of business
The main object of IDLC Securities Limited is to act as a member of stock exchanges, the central
depository system (CDS) companies and to carry on the business of broker, jobbers or dealers in stocks,
shares, securities, bonds, debentures etc. The Company is also authorized to buy, sell, hold or otherwise
acquire or invest the capital of the Company in shares, stocks and fixed income securities.
2 Significant accounting policies
2.1 Basis of preparation of financial statement
The Financial Statements of IDLC Securities Limited includes the Balance Sheet, Income Statement,
Statement of Changes in Equity, Cash Flow Statement, and Notes to the accounts. These Financial
Statements have been prepared under the historical cost convention on a going concern basis on
Generally Accepted Accounting Principles (GAAP) and in accordance with International Accounting
Standards (IAS) as adopted by the Institute of Chartered Accountants of Bangladesh (ICAB) so far, and
the Companies Act, 1994, Securities and Exchange Rules, 1987.
2.2 Cash flows statements
Cash Flow Statement is prepared in accordance with Bangladesh Accounting Standard (BAS) No.7: Cash
Flow Statement and the cash flows from operating activities have been presented under the indirect
method.
2.3 Fixed assets and depreciation
Fixed Assets are stated at cost less accumulated depreciation.
Depreciation is charged on the cost of fixed assets in order to write off such amounts over the estimated
useful lives, using the straight-line method in accordance with BAS 16. Depreciation for full month is
charged on additions irrespective of date when the related assets are put into use and no depreciation
139
is charged for the month of disposal. The rates of depreciation used to write off the amount of assets are
as follows:
Category of Assets Rate of Depreciation
Computer peripherals 20.00%

Office equipments 20.00%
Electrical equipments 20.00%
Motor Vehicles 25.00%
Office Decoration 20.00%
Furniture & fixtures 12.50%
Telephone and Telex 33.33%
Curtain & Carpet 33.33%
2.4 Intangible assets and amortisation
The main item included in intangible asset is computer software.
Intangible assets are recognized if it is probable that future economic benefits that are attributable to
the asset will flow to the Company and the cost of the asset can be measured reliably in accordance
with BAS 38: Intangible Assets. Accordingly, these assets are stated in the Balance Sheet at cost less
accumulated amortisation.
Intangible assets are amortised over a period of three (03) years.
2.5 Revenue recognition
Revenue, which comprises of brokerage commission, service charges and capital gain is recognized in
accordance with Bangladesh Accounting Standard (BAS) 18: Revenue recognition.
Provision for income tax has been calculated on the income other than brokerage commission. The
Company’s trading income is subject to deduction of tax at source which is treated as final discharge
from tax liability under Income Tax Ordinance 1984.
2.7 Provision for expenses
Provision for expenses is recognized when the company has a present obligation as a result of a past
event and it is probable that an outflow of resources embodying economic benefits will be required to
settle the obligations and reliable estimate of the amount can be measured.
2.8 Cash and Cash equivalent.
Cash and cash equivalent includes cash in hand, cash at bank and fixed deposits which are held and are
available for use by the company without any restriction.
140
2.9 Currency
The amounts in the Financial Statements have been rounded off to the nearest integer in Bangladesh
Taka.
3 Subsequent events
3.1 Proposed dividend
The Board of Directors at the 26th Board Meeting held on 15 March 2010 recommended to the
shareholders a stock dividend (bonus shares) in the ratio of 1 Bonus share for every 1 fully paid share (1
: 1) of Tk. 100 each. This will be considered for approval by the shareholders at the 4th Annual General
Meeting (AGM).
4 General
Figures of previous year have been rearranged wherever considered necessary to conform presentation of
the current year.
2009 2008
Particulars
Taka Taka
5 Share capital
Authorised capital
2,500,000 shares of Tk. 100 each 250,000,000 250,000,000
Issued, subscribed & paid up capital :
IDLC Finance Limited.
99,99,998 shares of Tk. 100 each fully paid up in cash 99,999,800 49,999,900
Mr. Arif Khan
2 share of Tk. 100 each fully paid up in cash 200 100
100,000,000 50,000,000
6 Retained earnings
Opening balance 189,028,195 50,233,682
Add : Net profit during the year 353,348,940 151,294,513
Less: Issue of Bonus Share 50,000,000 12,500,000
492,377,135 189,028,195
141
142
7.00 Fixed assets (at cost less depreciation)

Balance Purchase Disposal/ Balance Balance Charged Adjustment Balance value at
Particulars December
as on during the adjustment as on Rate as on during the during the as on
ANNUAL REPORT 2009

01.01.09 year during the year 31.12.09 01.01.09 year year 31.12.09 31, 2009
Taka Taka Taka Taka % Taka Taka Taka Taka Taka

Computer peripherals 5,031,420 2,845,400 - 7,876,820 20.00 1,219,751 1,339,600 - 2 ,559,351 5,317,469
Office equipments 4,310,468 5,092,486 - 9,402,955 20.00 904,520 1,516,818 - 2 ,421,338 6,981,616
Electrical equipments 3,459,937 6,663,493 - 10,123,429 20.00 786,016 1,327,101 - 2 ,113,117 8,010,312
Motor Vehicles 2,254,000 3,165,000 (1,000,000) 4,419,000 25.00 131,042 861,000 (104,167) 887,875 3,531,125
Office Decoration 3,277,098 4,527,833 - 7,804,931 20.00 550,957 828,111 - 1 ,379,068 6,425,863
Furniture & fixtures 2,326,124 3,167,321 - 5,493,446 12.50 329,871 494,431 - 824,301 4,669,144
Telephone and Telex 151,817 555,013 (38,950) 667,880 33.33 48,769 121,454 (3,593) 166,630 501,249
Curtain & Carpet - 77,500 - 77,500 33.33 - 17,220 - 17,220 60,280
Total 2009 20,810,864 26,094,046 (1,038,950) 45,865,961 3,970,925 6,505,736 (107,759) 10 ,368,903 35,497,057
Total 2008 12,926,114 7,884,750 - 20,810,864 1,012,452 2,958,474 - 3 ,970,926 16,839,938
7.1 Details of disposal / adjustments:
Particulars Cost Accumulated Book Value Sale price/ Profit / (loss) Mode of disposal Buyer
depreciation adjustment on disposal
Taka Taka Taka Taka Taka
Motor Vehicles 1,000,000 104,167 895,833 966,650 70,817 As per rules of the company Employees
Telephone and Telex 38,950 3,593 35,357 35,357 - As per rules of the company Employees
Total 2009 1,038,950 107,759 931,191 1,002,007 70,817

Total 2008 - - - - -
2009 2008
Taka Taka
7.2 Allocation of depreciation charged
Depreciation charged during the year has been allocated

as follows
Operating expenses (60%) 3,903,441 1,775,084

Office & admin. expenses (40%) 2,602,294 1,183,390
6,505,736 2,958,474
8 Intangible assets
This represents cost of IT Software & development, the

details of which are given below :
Opening balance 450,000 360,000
Purchase during the year 570,000 90,000
1,020,000 450,000
Less :
Opening amortisation 291,638 141,653
Amortization during the year (Note 8.1) 257,057 149,985
548,695 291,638
471,305 158,362
8.1 Allocation of amortization charged
Amortization charged during the period has been allocated

as follows :
Operating expenses (60%) 154,234 89,991
Office & admin. expenses (40%) 102,823 59,994
257,057 149,985
9 Membership at cost
This represents the amount paid for purchasing membership of Dhaka Stock Exchange Limited (DSE) and
Chittagong Stock Exchange Limited (CSE) Including stamp duty for transferring shares.
DSE
Purchase of DSE membership from Mehnaz Mannan & Co. 15,000,000 15,000,000
Share transfer stamp duty 225,000 225,000
15,225,000 15,225,000
CSE
Purchase of CSE membership from Technohaven Securities Ltd. 3,400,000 3,400,000
Share transfer stamp duty 51,000 51,000
3,451,000 3,451,000
18,676,000 18,676,000
143
2009 2008
Taka Taka
10 Advances, Deposits & Prepayments
Advances & Prepayments (Note 10.1) 13,029,758 5,742,493

Security Deposit (Note 10.2) 290,000 130,000
13,319,758 5,872,493
10.1 Advances and Prepayments
Advances
Advance to Dhaka Stock Exchange Limited 600,000 350,000
Advance to Lead Soft Bangladesh Limited - 200,000
Advance to iCons Limited 217,000 -
Advance for Services / Suppliers 286,028 -
Advance to Employees for Expenses 1,270 -
1,104,298 550,000
Prepayments
Rent 11,691,506 5,078,280
Chittagong branch 1,024,920 1,340,280
DOHS branch - 120,000
Sylhet branch 2,970,000 3,618,000
Gulshan branch 4,294,586
Narayanganj branch 3,402,000 -
11,925,460 5,192,493
Insurance Premium
Group Life 127,569 78,000
DMX branch 13,309 -
Chittagong branch 6,099 -
DOHS branch 6,612 -
Sylhet branch 6,490 -
Gulshan branch 18,555 -
Motor Vehicles 55,320 36,213
233,954 114,213
13,029,758 5,742,493
10.2 Deposits
Security deposit to CDBL 100,000 100,000

Security deposit to CSE 25,000 25,000
Security deposit to Dhaka Telephone Company 5,000 5,000
Security deposit to Brig Gen. Gyasuddin A Chowdhury 150,000 -
Security deposit to Sadharan Bima Corporation 2,000 -
Security deposit to Nabarun Agencies 8,000 -
290,000 130,000
11 Advance income tax 2,563,079 1,450,329
144
2009 2008
Taka Taka
The amount has been deducted at source on Bank Interest, FDR Interest and Dividend Income.
12 Investment in Securities
2009 - Market Price

Name of Company No. of Shares Cost price at the end of the year
(Taka) (Taka)
Lanka Bangla 100,000 29,884,905 31,380,000

NCC Bank 50,000 29,299,558 29,150,000
Prime Bank 50,000 32,099,805 32,650,000
Square Pharma 5,000 13,830,327 14,381,250
105,114,595 107,561,250
13 Accounts Receivable
Inter company receivable (Note 13.1) 2,422,245 1,038,353

Receivable from DSE (Note 13.2) 93,402,573 56,808,031
Receivable from CSE (Note 13.3) 4,267,927 1,101,300
Receivable from clients (Note 13.4) 98,733,843 9,730,078
Receivable from sale of shares (Note 13.5) 153,746,625 102,411,236
Interest receivable (Note 13.6) 109,439 193,318
352,682,653 171,282,316
13.1 Inter company receivable
The amount represents receivable from IDLC Finance Ltd. for the following expenses bared by IDLC Securities Ltd.
IDLC Finance Limited:

Opening Balance 1,038,353 -
Addition during the year
Staff training - 25,885
Office Rent 591,034 183,132
Utilities 94,389 61,701
Furniture and Fixtures - 176,900
Computer peripherals - 241,500
Office equipment 287,689 -
Electrical equipment 139,446 -
Telephone & Telex 6,234 -
Furniture & Fixtures 164,304 -
Office Maintenance 8,580 -
Service Charge 13,886 -
CDBL Charges 78,331 349,235
1,383,893 1,038,353
2,422,245 1,038,353
145
2009 2008
Taka Taka
13.2 Receivable from DSE
This balance has been resulted from sale of shares through Dhaka Stock Exchange Limited (DSE).
Receivable as Broker 65,126,998 56,808,031
Receivable as Dealer 28,275,575 -
93,402,573 56,808,031
13.3 Receivable from CSE 4,267,927 1,101,300
This balance has been resulted from sale of shares through Chittagong Stock Exchange Limited (CSE).
13.4 Receivable from Clients: 98,733,843 9,730,078
This balance represents the clients’ purchase of shares as broker on 31 December, 2009 and CDBL charge
incurred against trading as on 31 December, 2009.
13.5 Receivable from sale of shares: 153,746,625 102,411,236
This balance has been resulted from the sale of marketable securities during the year.
13.6 Interest receivable 109,439 193,318
The interest has been accrued from FDR amount with Trust Bank Limited calculated on daily basis interest @
8.00% p.a. respectively.
14 Margin loan to Clients: 22,433,943 -
This balance represents the margin loan to clients’ provided by the Company on 31 December, 2009
15 Cash & cash equivalents
Cash in hand (Note 15.1) 50,000 20,000
Cash at bank (Note 15.2) 628,691,558 322,103,269
FDR (Note 15.3) 5,471,950 10,316,256
634,213,508 332,439,525
15.1 Cash in hand 50,000 20,000
The amount was lying with the accountant’s custody as on December 31, 2009.
146
15.2 Cash at bank
Name of the Bank Branch A/C No. A/C Type 2009 Taka
Standard Chartered Bank Ltd. Dhaka Main 02-3066347-01 Call deposit 38,044,504
CitiBank, N.A. Dhaka Main 010000200553004 Current A/C -
The HSBC Dhaka Main 001-247642-011 Current A/C -
Eastern Bank Ltd. Dhaka Main 101.130.21 STD A/C 202,422,721
Commercial Bank of Ceylon Dhaka Main 2802005291 STD A/C 362,031
628,691,558
15.3 FDR
Name of the Bank Interest Rate 2009 Taka

Trust Bank Limited 8.00% p.a. 5,471,950
16 Accounts Payable 2009 2008
Payable to clients (Note 16.1) 382,356,866 193,797,817

Payable to DSE (Note 16.2) 179,157,575 95,799,091
Payable to CSE (Note 16.3) - 5,872,165
Inter Company Payables (Note 16.4) 13,959,484 4,524,559
Other Payable (Note 16.5) 1,373,587 200,857
576,847,511 300,194,489
16.1 Payable to clients
This balance represents the clients’ sale proceeds of shares and deposits against share purchase which is
currently lying with the company’s bank A/C.
As Broker 228,610,241 193,797,817

As Dealer 153,746,625 -
382,356,866 193,797,817
16.2 Payable to DSE 179,157,575 95,799,091
This balance has been resulted from purchase of shares as broker through Dhaka Stock Exchange Ltd.
16.3 Payable to CSE - 5,872,165
This balance has been resulted from purchase of shares as broker through Chittagong Stock Exchange Ltd.
147
2009 2008
Taka Taka
16.4 Inter company payables

The amount represents payable to IDLC Finance Ltd. for the following expenses incurred by IDLC Securities
Ltd.and I.Cons Limited for enjoying IT services.
IDLC Finance Limited:

Addition during the year
Legal and professional fee 200,000 5,500
Office equipment 368,638 -
Electrical equipment 2,404,592 -
Telephone & Telex 70,375 -
Furniture & Fixtures 1,401,920 -
Motor vehicle 825,000 -
Office Decoration 2,708,903 -
Advances for Services / Suppliers 87,500 -
Prepaid Insurance 43,358 -
Salaries and remuneration 2,314,227 2,330,985
Medical and welfare expenses - 12,671
Telephone expenses 60,007 87,425
Office rent 1,857,637 1,037,116
Utilities 1,060,811 335,040
Advertisement & Promotion 6,710 56,431
Printing & stationeries 10,776 -
Renewal & Registration 12,500 -
Postage and Courier 7,454 14,098
Repair & maintenance - 12,500
Traveling and Conveyance 23,586 8,440
Entertainment 73,111 870
Service Charge - 75,000
Motor vehicle expenses 268,256 223,483
13,959,484 4,199,559
i.Cons Limited:
Opening Balance - 175,000
Repair & maintenance - 150,000
- 325,000
13,959,484 4,524,559
148
2009 2008
Taka Taka
16.5 Other payable
Payable to CDBL 75,467 200,857

Payable to Lead Soft Bangladesh Limited 250,000 -
Payable to Riddi Architects 914,520 -
Payable to Tanya Karim N. R. Khan & Associates 100,000 -
Miscellaneous payable 33,600 -
1,373,587 200,857
17 Provision for expenses
Audit fee 41,800 36,575

Salaries & remuneration 874,366 556,315
Office Rent 124,200 254,308
Utilities 21,300 50,875
Postage & Courier 24,726 -
Advertisement & promotion - 48,515
Printing & stationeries - 3,782
Entertainment 21,250 1,524
Telephone expenses - 4,297
Car Fuel 1,000 -
Car Maintenance 800 -
Staff Training & Development 142,500 -
Income tax 9,029,146 6,540,087
10,341,964 7,496,278
18 Provision for future losses 5,405,288 -
This represents the provision for future losses from investment in securities for the year ended 2009.
19 Brokerage commission
Broker 377,526,136 195,547,415

Dealer 681,139 -
378,207,275 195,547,415
20 Capital gain from sale of securities 85,258,963 3,194,086
Capital gain has generated from own portfolio of IDLC Securities Limited during the Year 2009. As such the
Company has informed the Stock Exchanges regarding its own transactions through Form ‘D’ to comply with
rules 8(3) of Securities and Exchange Commission Rules 1987.
149
2009 2008
Taka Taka
21 Other operating income
Service charges 983,800 691,100

BO Account Maintenance fee 329,600 252,300
1,313,400 943,400
22 Operating expenses
Howla charges
DSE as Broker 5,343,606 2,627,958
DSE as Dealer 25,485 -
5,369,091 2,627,958
CSE as Broker 361,332 299,568
5,730,423 2,927,526
Laga charges
DSE as Broker 28,182,154 13,488,642
DSE as Dealer 170,285 -
28,352,439 13,488,642
CSE as Broker 1,598,458 1,175,127
29,950,897 14,663,769
CDBL transaction fee 1,255,002 433,383
Tax Deducted at Source (Note 22.1) 24,553,993 8,798,262
Internet connectivity charges 3,795,623 1,396,834
Depreciation & amortization 4,057,676 1,865,075
69,343,613 30,084,849
22.1 Tax Deducted at Source
The amount has been deducted by Dhaka Stock Exchange Ltd. (DSE) & Chittagong Stock Exchange Limited
(CSE) from the transaction amount as per section 53BBB of the Income Tax Ordinance 1984.
TDS deducted by:

Dhaka Stock Exchange Limited
As Broker 23,175,274 8,093,185
As Dealer 170,285 -
23,345,559 8,093,185
Chittagong Stock Exchange Limited
As Broker 1,208,434 705,077
24,553,993 8,798,262
150
2009 2008
Taka Taka
23 Other Income
Interest on FDR 2,481,075 545,324

Bank interest 15,226,856 6,302,801
Interest on Margin Loan 593,095 -
Miscellaneous Income - Transport Loan 80,894 19,810
Miscellaneous Income - Common 9,232 -
Gain/(Loss) on Disposal of Fixed Assets 70,817 -
Dividend Income 200,031 203,000
18,662,001 7,070,935
24 Office & administrative expenses
Salaries & remuneration 23,117,112 11,372,167

Staff training 657,118 285,315
Medical and welfare expenses 48,867 18,721
Legal charges & professional fee 582,620 66,200
Advertisement & promotion 1,230,474 1,114,744
Subscription & fee 243,788 164,647
Government fees & stamp duty 49,950 1,923
Renewal & Registration 318,135 151,010
Office rent 6,469,144 2,569,512
Utilities 1,679,098 715,823
Repair & maintenance 357,652 646,293
Entertainment 1,578,948 519,803
Motor vehicle expenses 683,891 234,956
Telephone expenses 470,858 290,746
Printing & stationeries 2,121,419 1,152,288
Newspaper & periodicals 94,643 68,793
Audit fee 167,200 130,625
Postage and Courier 56,718 30,647
Travelling and Conveyance 257,002 130,622
Service Charge 358,712 230,460
Donations 100,000 -
Office Insurance 206,818 -
Office Maintenance 1,710,493 -
Employees Group Insurance Premium 113,360 -
Other office expenses - 763
Depreciation & amortization 2,705,117 1,243,384
45,379,139 21,139,442
151
2009 2008
Taka Taka
25 Financial expenses
Bank charges 147,084 71,169

Charges on Corporate / Bank Guarantee 2,306,597 867,222
Interest on overdraft facilities 80,556 238,958
2,534,237 1,177,349
26 Net worth
Share capital 100,000,000 50,000,000

592,377,135 239,028,195
This represents 592.38% of the paid up capital of the Company.

Dated: Dhaka
March 15, 2010
152
Bay’s Galleria (1st Floor), 57 Gulshan Avenue, Gulshan-1, Dhaka-1212, Tel: 8834990, Fax : 8834377, E-mail : mailbox@idlc.com
PROX Y FORM
I/We ........................................................................................................................................................................................................................ of
.................................................................................................................................................................................................... being a member
of IDLC Finance Limited and a holder of ............................... Shares hereby appoint Mr./ Ms. ..........................................................
of .............................................. as my/ our proxy to vote for me/us and on my/our behalf at the 25th Annual General
Meeting of the Company to be held on April 19, 2010 (Monday) and at any adjournment thereof.
Signed this ............................................................ day of April 2010
Signature Signature
Name Name
(Member) Revenue (Member)
Stamp
Folio/BO ID No Folio/BO ID No
NOTE :
a) This form of proxy, duly completed, must be deposited at least 48 hours before the meeting at the Company’s
registered office. Proxy is invalid if not signed and stamped as explained above.
b) Signature of the Shareholders should agree with the Specimen Signature registered with the Company and
Depository Register.
Attendance Slip
Bay’s Galleria (1st Floor), 57 Gulshan Avenue, Gulshan-1, Dhaka-1212 Tel : 8834990, Fax : 8834377, E-mail “ mailbox@idlc.com
I hereby record my attendance at the 25th Annual General Meeting of IDLC Finance Limited as a holder of
........................................................................................................ shares of the Company.
Signature
Name
(Member/ Proxy)
Folio/BO ID No.
NOTE :
Shareholders attending the meeting in person or by proxy are requested to complete the Attendance Slip and hand
it over at the entrance of the meeting hall.
153

IDLCAnnual Report 2009

Загружено:

Сведения о документе

Исходное описание:

Оригинальное название

Авторское право

Доступные форматы

Поделиться этим документом

Поделиться или встроить документ

Параметры публикации

Этот документ был вам полезен?

Это неприемлемый материал?

Авторское право:

Доступные форматы

IDLCAnnual Report 2009

Загружено:

Авторское право:

Доступные форматы

www.idlc.

ANNUAL REPORT 2009

A1025-01 Approval of Appointment of CEO & Managing Director of the Company;

By order of the Board

H. M. Ziaul Hoque Khan

1. March 28, 2010 is the record date

IDLC FINANCE LIMITED ANNUAL REPORT 2009

For our Customers

For our Shareholders

For our Employees

For the Society

Our Corporate Philosophy

IDLC FINANCE LIMITED ANNUAL REPORT 2009

IDLC Core Values

Highest ethical standards

IDLC FINANCE LIMITED ANNUAL REPORT 2009

> act and encourage others to behave in a professional

> strive to maintain and improve the competence of all

> use reasonable care and exercise independent

> not restrain others from performing their professional

> maintain knowledge of and comply with all applicable

> disclose all conflicts of interest

> deliver professional services in accordance with IDLC

- respect the confidentiality and privacy of customers,

- not engage in any professional conduct involving

IDLC employees have an obligation to know and

IDLC FINANCE LIMITED ANNUAL REPORT 2009

IDLC's Products and Services

IDLC's product and service offerings include:

Debt Products: Liability Products:

IDLC FINANCE LIMITED ANNUAL REPORT 2009

IDLC FINANCE LIMITED ANNUAL REPORT 2009

IDLC FINANCE LIMITED ANNUAL REPORT 2009

Company Registration No. Major Stock Brokers

IDLC FINANCE LIMITED ANNUAL REPORT 2009

February 22, 1986 Commencement of leasing business

October 1, 1990 Establishment of branch in Chittagong, the main port city

March 20, 1993 Listed on the Dhaka Stock Exchange

November 25, 1996 Listed on the Chittagong Stock Exchange

June 29, 2004 Opening of Gulshan Branch

November 22, 2004 Launching of Investment Management Services "Cap Invest"

January 2, 2006 Opening of SME focused branch at Bogra

April 6, 2006 Opening of Branch at Uttara

December 3, 2007 IDLC Securities Limited Chittagong Branch commenced operation

August 9, 2009 IDLC Securities Limited inaugurates its Gulshan Branch

IDLC FINANCE LIMITED ANNUAL REPORT 2009

Aziz Al Kaiser, Chairman, The City Bank Limited

Meherun Haque, Director, The City Bank Limited

Yongbok Jo, - Nominated by the City Bank Limited

Md. Rezaul Karim, Managing Director, Sadharan Bima Corporation

A. K. M. Shaheed Reza, Director, Mercantile Bank Limited

Farooq Sobhan, President, Bangladesh Enterprise Institute

CEO & Managing Director

IDLC FINANCE LIMITED ANNUAL REPORT 2009

Habibur Rahman Mollah, FCA

IDLC FINANCE LIMITED ANNUAL REPORT 2009

Mr Kaiser graduated from U.S. International University, London, UK. An industrial

Mrs. Meherun Haque is the daughter of Mr Deen Mohammad, a leading industrialist

IDLC FINANCE LIMITED ANNUAL REPORT 2009

Md. Rezaul Karim

IDLC FINANCE LIMITED ANNUAL REPORT 2009

IDLC FINANCE LIMITED ANNUAL REPORT 2009