NCCBLMF1_Audited Financial Statements, Dec, 2015.pdf

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NCCBL Mutual Fund-1

Auditor's Report along with Audited Financial Statements For the year ended 31 December 2015

-• ACNABIN Chartered Accountants

BDBL Bhaban (Level-13), 12 Kawran Bazar Commercial Area, Dhaka-1215, Bangladesh. Telephone: (88 02) 8144347 to 52, Facsimile: (88 02) 8144353

E-mail: <[email protected]>, Web: www.acnabin-bd.com

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BA K ER T I L LY I ' r r:R ' t\T I ONJ\L

• ACNABIN Chartered Accountants

BDBL Bhaban (Level-13 & 14) 12 Kawran Bazar Commercial Area Dhaka-1215, Bangladesh.

INDEPENDENT AUDITOR'S REPORT To The Trustee of NCCBL Mutual Fund- 1

Report on the Financial Statements

Telephone: (88 02) 8144347 to 52 (88 02) 8189428 to 29

Facsimile: (88 02) 8144353 e-mail: <[email protected]>

Web: www.acnabin.com

We have audited the accompanying financial statements of NCCBL Mutual Fund-1 (the fund) which comprises the Statement of Financial Position as at 31 December 2015, the related Statement of Profit or Loss and Other Comprehensive Income, Statement of Changes in Equity and Statement of Cash Flows for the year then ended 31 December 2015 and a summary of significant accounting policies and other explanatory information disclosed in Note 1-24.

Management's Responsibility for the Financial Statements

LR Global Asset Management Company Limited (Asset Management Company of NCCBL Mutual Fund-1 i.e. AMC or the Asset Manager) is responsible for the preparation and fair presentation of these financial statements in accordance with Bangladesh Financial Reporting Standards as explained in note # 4.13 (International Financial Reporting Standards as adopted in Bangladesh), the Securities and Exchange Rules 1987, Securities and Exchange Commission (Mutual Fund) Rules 2001 and other applicable laws and regulations in Bangladesh and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Bangladesh Standards on Auditing (BSA). Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

~ ~ "'~-d BAKER TILLY I N TI!RNATION AL


We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the financial statements present fairly, in all material respects the financial position of NCCBL Mutual Fund-1 as at 31 December 2015, and its financial performance and its cash flows for the year then ended in accordance with Bangladesh Financial Reporting Standards as explained in note# 4.13 and comply with the Securities and Exchange Rules 1987, Securities and Exchange Commission (Mutual Fund) Rules 2001 and other applicable laws and regulations in Bangladesh.

Emphasis of Matters

Without qualifying our opinion, we draw attention to the following matters:

1. Note # 17 to the financial statements, the Fund disclosed the NAV (at market price) of Tk. 10.80 considering the market value of the assets except for the investment in mutual funds which has been considered at cost. Had the investment in mutual funds been considered at market price, NAV (at market price) would have been decreased to Tk.10.31.

• 2. Note #23 to the financial statements, where management explains the circumstances

against the BSEC directive# BSEC/MF AND SPV-MF-112/2013/02/736 Dated 19 March 2015, legal status of BSEC's decision and directives, and management's position on the

same.

3. As disclosed in annexure - B to the financial statements, where the Fund disclosed the investment in Thyrocare Bangladesh Limited and Guardian Healthcare Ltd amounting to Tk. 49,455,000 and Tk. 15,962,870 which is 251.04% and 15.97% respectively of the paid-up capital of the respective companies. It is not in the line with the Rule-56 of the Securities and Exchanges Commission (Mutual Fund) Rules- 2001. As per the Rule (fifth schedule) a Fund cannot invest more than 15% of the paid up capital of a particular company.

4. As disclosed in note #5.2 to the financial statements, the Asset Manager has explained the reason for not testing the impairment of the investment in the corporate bond of Guardian

Healthcare Ltd amounting to Tk. 15,000,000.

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INTERNATIONAL


We further report that:

1. 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;

2. In our opinion proper books of account as required by law have been kept by the Fund so far as it appeared from our examination of those books;

3. The Fund's financial position and performance together with the notes 1-24 dealt with by the report are in agreement with the books of account; and

4. The expenditure incurred was for the purpose of the Fund which complies with the prescribed rules.

Dated, Dhaka

14 H~R 2016

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BAlCER TILLY INTERNATIONAL

3


NCCBL MUTUAL FUND - 1 Statement of Financial Position

As at 31 December 2015

Particulars Notes 1--- -----.,..-..-------- --i I B Amount in Taka .___ ____________ _____ _ __, 31.12.2015 31.12.2014

ASSETS

I nvestment in securit ies at cost price

Preliminary and issue expenses

Other receivables

Deposit and prepayments

cash and cash equivalents

LIABILITIES Accounts payable

Provision against erosion of value of securities

Dividend payable-unclaimed

NET ASSETS

OWNERS' EQUITY capital Fund

Re-investment unit premium

Retained earnings

Net asset value (NAV) per unit: At cost

At market price

5

6 7 8 9

10 11

12

13 14

15

16

17

815,713,246

17,961 ,224 19,660,388

1,761,442

441,002,924

1,296,099,224

89,617,300 34,674,021

439,706 124,731,027

1,171,368,197

1,085,034,010

14,965,990 71,368,197

1,171,368,197

11.12 10 .80

987,905,662

20,788,239 12,663,376

1,706,733 179,701,059

1,202,765,069

6,597,670 42,434,817

168,856

49,201,343

1,153,563,726

1,085,034,010

14,965,990 53,563,726

1,153,563,726

11.02 10.63

These financial statements should be read in conjunction with annexed notes

~,)~ ~· Bangladesh General Insurance CorrLany limited

Trustee

Dated, Dhaka

14 MAR 2016

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BAKER TILLY INTERNATIONAL

4

LR Global Bangladesh Asset Management Company limited

Asset Manager

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Chartered Accountants


NCCBL MUTUAL FUND - 1 Statement of Profit or Loss and Other Comprehensive Income

For the year ended 31 December 2015

Particulars Notes t---------.-..-------1 I 8 I Amount in Taka

L....--.--------------------1 2o15 II 2o14

INCOME Interest income Net gain on sale of securities

Dividend income

Other income

EXPENDITURE Management fee

Brokerage Commission

Amortization of preliminary and issue expenses

Trustee fee

BSEC annual fee

Custodian fee

Loss of Preference Share redemption

Loss of accrued Interest on Convertible bond

Publication and other expenses

CDBL- Annual Fee, Settlement and Demat charges

DSE annual fee

CSE annual fee

Bank charges and excise duty

Audit fee

Income before provision for the year (Provision)/Write back of provision against erosion of value of securities

Net income for the year

Earnings per unit during the year

18 19 20 21

6

11

22

17,831,199 31,177,302 22,626,503 49,714,292 30,995,654 22,047,585

18,870 -71,472,226 102,939,179

17,045,843 17,206,076 3,214,440 2,437,569 2,827,015 2,827,015 1,318,983 1,336,744 1,140,369 1,211,150

802,434 797,854 560,000 -900,000 -437,190 257,994 279,610 258,537 100,000 100,000 100,000 100,000 82,647 134,263 69,000 57,500

28,877,531 26,724,702 42,594,695 76,214,476

7,760,796 (41,153,621)

50,355,491 35,060,855

0.4641 0.3231

These financial statements should be read in conjunction with annexed notes

~· }·t· Bangladesh General Insurance Company Limited

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Trustee

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LR Global Bangladesh Asset Management Company Limited

Asset Manager

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NCCBL MUTUAL FUND - 1 Statement of Changes in Equity


I Particulars l1 Capital Fund Re-Investment Unit Premium

Balance as at 1st January 2014 Net income during the year

Dividend paid during the year

Balance as at 31 December 2014

Balance as at 1st January 2015 Net income during the year

Dividend paid during the year

Balance as at 31 December 2015

1,085,034,010

1,085,034,010

1,085,034,010

1,085,034,010

- -+: ~ \ ~I ~~ Bangladesh General Insurar/ce Company Limited

Trustee

6

14,965,990

14,965,990

14,965,990

14,965,990

Retained Earnings

L....------'

Amount in Taka

,- Total Equity I

127,006,272 1,227,006,272 35,060,855 35,060,855

{108,503,401) {108,503,401) 53,563,726 1,153,563,726

53,563,726 50,355,491

(32,551,020) 71,368,197

1, 153,563,7 26 50,355,491

{32,551,020) 1,171,368,197

-iJ£J A.L,.JJ LR Global Bangladesh Asset

Management Company Limited Asset Manager

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NCCBL MUTUAL FUND -1 Statement of Cash Flows


A. Cash flows from operating activities

Investment in marketable securities, net Investment in IPO shares

Proceeds from sell of marketable securities Interest income realized in cash

Dividend income received in cash Advance, Deposit and Prepayments

Payment made for expenses Other Income

Net cash from operating activities (prior year's balances are rearranged)

B. Cash flows from investing activities Investment withdrawal/ (made) in Corporate Bond Investment withdrawal/ (made) in Preference shares

Investment withdrawal/ (made) in non-listed ordinary shares Net cash used in financing activities (prior year's balances are rearranged)

C. Cash flows from financing activities Dividend paid

Net cash used in financing activities

D. Net cash flows (A+B+C) E. Cash and cash equivalents at the beginning of the year F. Cash &. cash equivalents at the end of the year (D+E)

Net Operating Cash flow per unit for the year (Prior year's NOCFPU is restated)

l J\C ).).~. Bangladesh General Insurance l ompany Limited

-s= "'~-d BAKER TILLY INTERNATIONAL

Trustee

7

Amount in Taka 2o15 II 2o14

( 408,056,264) 50,004,000

605,047,959 19,392,545

21,877,295 (1,261,442)

(23,240,929) 18,870

263,782,035

2,000,000 27,800,000

29,800,000

(454,914,568) (4,000)

395,983,863 38,681,448

20,180,291 (1,206,733)

(25,737,911) -

(27,017,609)

2,000,000 (64,147,000) 43,150,000

(18,997,000)

(32,280,170)11 (108,334,545)1 (32,280,170) (108,334,545)

261,301,865 179,701,059

441,002,924

2.43

(154,349,154) 334,050,213

179,701,059

(0.25)

LR Global Bangladesh Asset Management Company Limited

Asset Manager

1 Introduction

NCCBL MUTUAL FUND - 1 Notes to the Financial Statements


NCCBL Mutual Fund- 1 (here-in-after referred to as "the Fund"), a Trust property, was established on 03 November 2010 under the Trust Act, 1882 and registered under the Registration Act, 1908 and subsequently on 15 November 2010 registered as a Mutual Fund from the Bangladesh Securities and Exchange Commission with a total paid-up capital of Tk. 1,000 million divided into 100 million units of Tk. 10.00 each with init ial tenure of 10 years under the SEC (Mutual Fund) Regulations, 1997 which has been subsequently repealed and replaced by Securities and Exchange Commission (Mutual Fund), Rules, 2001. In 2013, the fund issued 8,503,401 re-investment unit to the existing shareholders as declared by the Trustee based on the audited financial statements of 2012. The Fund was listed with the Stock Exchanges as of 10 May 2012 and trading of units of the Fund started from 24 May 2012.

Bangladesh General Insurance Company Limited (BGIC) is the Trustee while Standard Chartered Bank is the Custodian of the Fund and LR Global Bangladesh Asset Management Company Ltd. is managing the operations of the Fund as the Asset Management Company (AMC).

2 Objectives The objectives of the NCCBL Mutual Fund-1 is to earn superior risk adjusted return by maintaining a diversified investment portfolio and provide attractive dividend payments to the unit-holders. Most of the investments of the Fund were made in quoted securities. The net income of the Fund is distributable to the unit-holders on a yearly declaration basis.

3. Basis of preparation 3.1 Statement of compliance

These financial statements have been prepared under historical cost convention and in conformity with Bangladesh Accounting Standards (BASs), Bangladesh Financial Reporting Standards (BFRSs), Bangladesh Securities and Exchange Rules 1987, Bangladesh Securities and Exchange Commission (Mutual Fund), Rules, 2001 and other applicable laws and regulations.

3.2 Basis of measurement These financial statements have been prepared on a going concern basis under historical cost convention in accordance with generally accepted accounting principles.

3 .3 Functional currency and presentational currency These financial statements are presented in Bangladeshi Taka, which is also the Fund's functional currency.

3.4 Closure of Accounting year of the Fund These financial statements are prepared for the period from 01 January 2015 to 31 December 2015.

4 Significant accounting policies 4.1 Investment policy

The investment policy of the Fund is summarized below. All these investments are to be approved by Bangladesh Securities and Exchange Commission, Bangladesh Bank and any other authorities as required.

(i) at least 60% of total assets of the Fund is to be invested in capital market out of which at least 50% will be in listed securities;

(ii) not more than 25% of total asset of the Fund shall be invested in fixed income securities; (iii) not more than 15% of total asset of the Fund shall be invested in pre-IPOs at a time.

(iv) all amounts collected for the Fund is to be invested only in cashable/transferable instruments, securities either in money market or capital market or privately placed pre-IPO equity, preference shares, debentures or securitized debts;

(v) the fund shall get the securities purchased or transferred in the name of the Fund;

(vi) asset management company will make the investment decisions and place orders for securities to be purchased or sold for the Fund's portfolio only, etc.

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BAKER TILLY INTERNATIONAL 8

4.2 Valuation policy Valuation of various investments of the Fund is made as under:

(i) listed securities (other than mutual fund) are valued at market value as per BAS 39. Mutual fund securities are valued at lower of 85% of NAV, cost price or market price as per Bangladesh Securities and Exchange Commission circular ref. No. BSEC/ Mukhopatro/ 2011/1972 dated 29 June 2015.

(ii) Pursuant to Rule 58 (2) of Securities & Exchange Commission (Mutual Fund) Rules, 2001, the Fund value the non-listed securities on a consistent basis duly authenticated by Trustee of the Fund and impairment loss is calculated on the basis of investment valuation based on Net Asset Value (NAV).

( iii) listed bonds, not traded within previous one month prior to year end have been valued based on average quoted closing price of the last twelve months from the date of valuation. Non-listed bonds have been considered as Held to Maturity (HTM).

(iv) Market value is determined by taking the closing price of the securities at the Dhaka Stock Exchange Ltd. as of the Balance Sheet date.

4.3 Net asset value calculation

NAV per unit is being calculated using the following formula:

Total NAV =VA- LT NAV per unit = Total NAV I No. of units outstanding.

VA: Value of all securities in vault + Value of all securities placed in lien + cash in hand and bank balances + Value of all securities receivables + receivables of proceeds of sale of investments + Dividend receivable, net tax + Interest receivable, net of tax + Issue expenses amortized on that date + Printing, publication and stationery exoenses amortized on date.

L T: Value of all securities payable + Payable against purchase of investments + Payable as brokerage and custodial charges + Payable as trustee fee + All other payable related to printing, publication and stationery + Accrued deferred expenses with regard to management fee, annual fee, audit fee and safe keeping fee.

4.4 Revenue recognition Capital gains capital gains/losses are recognized on being realized based on FIFO method.

Dividend income Dividend income is recognized on being declared by the investee-company based on the record date as the cut off date.

Finance income Finance income comprises of interest income on fund kept at the bank account, FOR with Banks & NBFis, unsecured subordinated bond and preference shares.

4.5 Preliminary and issue expenses Preliminary and issue expenses represent expenditures incurred prior to the commencement of operations and establishment of the Fund. As per Bangladesh Securities & Exchange Commission (Mutual Fund) Rules, 2001, the expenses are being written off over a period of 10 (ten) years.

4.6 Management fee As per Bangladesh Securities and Exchange Commission (Mutual Fund) Regulation 2001, the Asset Management Company shall be entitled to charge the Fund an annual management fee for Investment Management at the following rate:

(i) @ 2.5% per annum of weekly average Net Asset Value (NAV) of the Fund up-to Tk. 50,000,000 (Taka five crore);

(ii) @ 2.0% per annum for additional amount of the weekly average NAV of the Fund over Tk.SO,OOO,OOO (Taka five crore) but up to Tk. 250,000,000 (Taka twenty five crore);

(iii) @ 1.5% per annum for additional amount of the weekly average NAV of the Fund over Tk. 250,000,000 (Taka twenty five crore) but up to Tk. 500,000,000 (Taka fifty crore);

(iv) @ 0.9% per annum for additional amount of the weekly average NAV of the Fund over Tk. 500,000,000 (Taka fifty crore).

The management fee is calculated on every closing day of the week on that week's average NAV of the Fund and accumulated up to the date of the financial statements.

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4.7 Trustee fee

The Trustee is entitled to an annual Trusteeship Fee @ 0.10% on the Net Asset Value (NAV) of the Fund only payable semi·annually during the life of the Fund as per Trust Deed.

4.8 Custodian Fee

The Fund shall pay to the Custodian a safe keeping fee @0.05% of the balance (dematerialized and non- dematerialized) securities held by the Fund calculated on the basis of average month end value per annum and trade settlement fees of BDT 500 per trade and the total monthly custodian expense is capped at Tk. 90,000 per month, which equates to on an annualized basis approximately 0.108% of the initial find size of Tk. 108.50 crore.

4 .9 Taxation The income of the Fund is exempted from Income Tax as per SRO No. 333-Act/Income TaX/2011 dated 10 November 2011, under Section 44(4) clause (b) of Income Tax Ordinance, 1984; hence no provision for tax is required.

4.10 Dividend policy (i) After the close of annual accounts , the Trustee , as appears, shall declare dividend for the Fund.

(ii) Pursuant to the Bangladesh Secun'ties & Exchange Commission (Mutual Fund) Rules, 2001 or any amendments of the Rules by Bangladesh Securities and Exchange Commission time to time, the Fund shall distribute by way of dividend to the holders of the units after the closing of the annual accounts an amount which shall not be less than 70% of the annual profit earned during the year.

(iii) Before deriving the annual income and declaring dividend, the Fund shall make provisions for revaluation of investments to cover losses if market value of investments goes below from their acquisition cost and also make a provision for bad and doubtful investments to the satisfaction of the Auditors and shall create a Dividend Equalization Reserve and a provisional Fixed-income Securities Investment Reserve by appropriation from the income of the Fund.

(iv) No dividend may be declared or paid other than from earnings of the Fund available for distribution.

4.11 Cash and cash equivalents cash and cash equivalents comprise cash in hand, bank balances and fixed deposits.

4.12 Provisions A provision is recognized if, as a result of a past event, the Fund has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provision is ordinarily measured at the best estimate of the expenditure required to settle the present obligation at the reoortina oeriod accordina to BAS -37.

4.13 Departure from BFRS a. The Fund has written off Preliminary and issue expenses over a period of ten years on a straight-line method according to Rule-65(3)Ka of Securities & Exchange Commission (Mutual Fund) Rules,2001 which contradicts with Paragraph 69(a) of BAS 38 1ntangible Assets', as it states that "no intangible or other asset is recognized when expenditure on start-up activities (i.e. Start-up costs) is incurred to provide future economic benefits".

b. The Fund is required to maintain provision for the erosion on value of marketable securities according Rule-67(1) of Bangladesh Securities & Exchange Commission (Mutual Fund) Rules, 2001 which contradicts with BAS 39.

4.14 Statement of cash flows Cash flows from operatinq activities have been presented under direct method accordinq to BAS-7.

4.15 Earnings per unit Earnings per unit has been calculated in accordance with BAS-33 "Earnings per Share" and shown on the face of Profit or Loss & Other Comprehensive Income.

4.16 General i. Figures appearing in these financial statements have been rounded off to nearest Taka.

ii. Comparative figures and account titles in the financial statements have been rearranged/ reclassified where necessary to conform with changes in presentation in the current year.

~ on~momberd BAKER TILLY INTERNATIONAL 10

lf/J(a ACNABIN .., Chartered Accountants

5 Investment In securities at cost price Investment in listed securities Investment In non - listed securities

5.1 Investment In listed securities Bank Cement Engineering Financial Institution

Food & Allied Fuel & Power Insurance Mise Mutual Fund PharmaceutiCals Tannery Industries TelecommuniCation

Textlle Travel

Details are mentioned in Annexure A

5.2 Investment in non- listed securities Mutual Fund !PO Investment

Non-Usted Ordinary Shares Preference Shares

NCCBL MUTUAL FUND- 1

Notes to the Flnand al Statements For the year ended 31 December 2015

Unsecured subordinate bond/Corporate Bond* Details are mentioned in Annexure B

5.1 5.2

5.2.1

Amount in Ta ka

83,377,301 40,824,933 15,695,682

102,376,956

13,120,890 3,128,050

-192,418,285 184,656,816

29,754,601

18,739,000 47,202,862

-731, 295,376

3,000,000

-962,870

49,455,000 31,000,000

84,417,870

815,991,792 171,913,870

987,905,662

101,261,168 52,171,825 28,039,934

127,97'1,928 30,062,152 98,458,480

13,736,961 8,087,860

190,683,459 62,670,649 24,893,390

70,499,026 7,451,960

815,991,792

3,000,000 50,004,000

962,870 84,947,000 33,000,000

171,913,870

*The above Investment In unsecured subordinate bond/COfpOrate bond Inter-alia Includes Investment In convertible bond of Guardian Healthcare Umited. In reference to the subscription agreement of Convertible Bond of •Guardian Healthcare Umited" dated June 03, 2013 and Certifocate of Registration of Mortgage/Olarge dated June 04, 2013, the letter of hypothecation by way of floating charge dated June 04, 2013 was executed by Guardian Healthcare Ltd. in favor of LR Global Bangladesh Asset Management Company limited (on behalf of NCCBL Mutual Fund-1). Although the charge creation was macle in favor of LR Global Asset Management Company ltd. but the Company (LR Global) neither has any kind of Investment In •Guardian Healthcare Umited" nor has any claim over the convertible bond Issued by •Guardian Healthcare Umlted". And hence we have not carried out impairment test against ttlls financial asset

5 .2.1 Investment in IPO*

!FAD Autos Umited "This is application money for JPO investment under Mutual Fund quota

6 Preliminary and Issue expenses Opening Balance Less: Amortized during the year

7 Other receiva bles Dividend receivable Accrued interest LR Global Bangladesh Asset Company Umited••

7 .1 7.2

L_ ___ _,l Ll - ...,.;:5o:!-',004"'-":",ooo?l 50,004,000

23,615,254 2,827,015

20,788,239

5,152,846 4,588,891

2,921,639 12,663,376

*-The above mentioned amount of Tk.2,921,639 was initially charged as office & administratiVe expenses and payment was macle to Asset Management Company. However, after raising this issue by the Bangladesh Securities and Exchange Commission (BSEC), the Fund has reversed the expenses creating a rece ivable for similar amount from Asset Management company.

~ an~rnerrberd BAKER TILLY I NTERNAT IONAL

11


7.1 Dividend receivables

Premier Cement Mills Limited !FAD Autos Limited Far East Knitting & Dyeing Industries Limited LR Global Bangladesh Mutual Fund One M.l. Cement Factory Limited Envoy Textile Mills Ltd Titas Gas Transmission & Distribution Co. Ltd Golden Harvest Agro Industries Ltd.

Salham Textile Mills Ltd. Premier Cement Mills Ltd. Malek Spinning Mills Ltd. Emerald Oil Industries Ltd. OlympiC Industries Ltd. Bengal Windsor Thennoplastics Ltd. Meghna Petroleum Limited Jamuna Oil Company Ltd. Padrna Oil Company Ltd.

7.2 Accrued interest Term Deposits (FOR) Cash at Bank (STD Accounts) Redeemable preference shares

Bond

8 Deposit and prepayments Deposit Prepayments

8.1 Deposit Central Depository Bangladesh Limited (CDBL)

8 .2 Prepayments Annual fee - BSEC Annual fee-CDBL Trustee fee

9 cash and cash equivalents Cash at bank (STD Account) Term deposits (FOR)

9 .1 cash at bank Southeast Bank Limited (STD Account) Standard Chartered Bank (Current Account) AI-Arafah Bank Limited (STD-Dividend Account) Southeast Bank Limited (STD-Dividend Account) BRAC Bank Limited (STD Account) Eastern Bank Limited (STD Account)

9.2 Term deposits Union Capital Ltd. (FOR)

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8.1 8.2

9.1 9.2

12

Amount In Taka

31.u .2o15 II 3u2.2o14

190,800 -122,500 123,400 -

13,657,827 -173,940 208,728

2,737 149,838 2,128,000

36,900 88,350

- 286,200

- 139,350

- 88,000

- 130,000

- 676,200

- 790,780

- 130,500

- 300,000

14,271,204 5,152,846

2,194,445 1,865,278

2,300 -1,160,000

270,800 1,563,613

2,467,545 4 ,588,891

1,~~::11 500,000 I 1,206,733 .

1,761,442 11706,733

500,000 500,000

1,140,368 41,529 24,836

1, 206,733

129,701,059 50,000,000

179,701,059

390,565,285 128,488,008 312 657

264,035 293,845 173,292 -

- 64,454

- 854,095

391,002,924 129,701,059

5o,ooo,ooo I Ll ----=5~o~,ooo=,ooo~l 50,000,000 50,000,000


10 Accounts payable

Trade

Management fee

Brokerage commission

Trustee fee

Custodian fee

Audit fee

COBL fee

Publication & Other Expense

11 Provislon/ (Write back of provision) against erosion of value of securities

Opening Balance

Add: Provision /{Write Back of provision) during 1t1e year (listed securities)

Add: Provision /(Write Back of provision) during lt1e year (non-listed securities)

Required provision against erosion In value of securities at 1t1e end of 1t1e period

12 Dividend payable-unclaimed

Opening balance

Add: Dividend declared during the year

Less: Dividend paid during lt1e year

13 Capital Fund

Opening Balance

Add: 1SSued reinvestment units

Amount in Tao

31 .12.2015 I I 3 1.12.2014

BB,353,141 6,376,364 731,526 25,341 265,060 19,060

86,092 65,242 89,371 69,000 57,500 41,489 30,031

5,750 -89,617,300 6,597,670

1,281,196 Annex A 37,185,622

Annex B '----:o..::.f:.?:::;.-':..J L----,.,.:3:!;,96:;::.!7 •;.:,999~ 4 2,434,817

168,856 32,551,020 32,719,876 32,280,170

108,503,401 108,503,401 108,334,545

168,856

1,085,034,0~0 I 1,085,034,010

14 Re-investment Unit Premium 14,965,990 14,965,990

15

16

17

The share premium is derived from lt1e Issue of 8,503,401 Re-Investment Units fO< Tk. 100,000,000, 1t1e face value of which is Tk. 85,034,010 (8,503,401 units @ Tk. 10 each) and the remaining amount of Tk. 14,965,990 (8,503,401 units @ Tk. 1.76 each) has been transferred to Re-Investment Unit premium account.

Retained earnings

Opening balance 127,006,272 Less: Dividend paid during lt1e year (108,503,401

18,502,870.95 Add: Profit during 1t1e year 35,060,855.17

53!563,726

Net asset value (NAY) per un it at cost

Total Asset at Cost Price 1,202,765,069 Less: Accounts payable 10 6,597,670

Dividend payable-unclaimed 12 168,856 Total net asset value at cost 1,195,998,543 Number of units 108,503,401 NAV per unit at cost 11.0 2

Net asset value ( NAY) per unit at market price Total net asset value at cost 1,195,998,543 Less: Provision fO< erosion of value of securities 11 42,434,817 Total net asset v alue at market price 1,171,368,19 7 1,153,563,726 Number of units 108,503,401 108,503,401 NAV per unit at market price 10.80 10 .63

Note: Total assets includes Investment In 1t1e listed securities, mutual fund, non-listed securities etc. The basis of 1t1e calculation in listed securities was taken at market value, lt1e calculation of mutual fund was taken at cost (If 85% of NAV is greater than acquisition cost, value was taken at cost, if less taken 85% of NAV.) lt1e calculation of non-listed securities was taken as per Note 4.2.

~ ., ondepender< """"""al BAKER TILLY INTERNATIONAL

13


18 Interest income Term Deposit (FOR) Cash at Bank (STD Account) Corporate Bond Preference Share

19 Net gain on sale of securities Gain I (Loss) from Usted Securities Gain 1 (loss) from Non-Usted Securities

19.1 Ga in I (Loss) from Usted Securities AB Bank 1st Mutual Fund AFC Agro Biotech Ltd. AIBL 1st IslamiC Mutual Fund Aman Feed Ltd. Argon Denims Ltd. Asia Insurance Ltd. Bangladesh General Insurance Company Ltd. Bangladesh Submarine Cable Company Ltd. Bank Asia Ltd. Baraka Power Ltd. Bengal Windsor Thermoplastics Ltd. Berger Paints Bangladesh Ltd. Beximco Pharmaceuticals Ltd. BRAC Bank Ltd. Britlsh AmeriCan Tobacco bangladesh Company Ltd. BSRM Steels Ltd. C & A Textiles Ltd. Delta Brae Housing Finance Corporation Ltd. Delta Ufe Insurance Company Ltd. Dhaka Bank Ltd. Dhaka ElectriC Supply Company Ltd. Eastern Bank Ltd. Eastland Insurance Company Ltd. Emerald Oil Industries Ltd. Envoy Textile Mills Ltd. Far chemiCals Industries Ltd. Far East Knitting & Dyeing Industries Ltd. First Bangladesh Fixed Income Fund Golden Harvest Agro Industries Ltd. Golden Son Ltd. GPH !spat Ltd. Grameenphone Ltd. Green Delta Insurance Company Ltd. Hamid Febrles Ltd. Heidelberg Cement Bangladesh Ltd. HWA Well Textiles (BD) Ltd. !FAD Autos Ltd.

IDLC Finance Umited

Bala nce cld

~ .,_,_d BAKER TILLY INTERNATIONAL

19.1

19.2

14

Amount in Taka

2o15 II 2o14

4 ,826,736 13,231,074

10,884,777 11,644,694

2,119,686 4,370,034

- 1,931,500

17,831,199 31,177,302

49,714,~921

22,626,503 4 9,714, 292

(3,423,382)

- 2,333,250 (1,131,372) 571,033 2,816,200 -(521,559) -

- (141,661)

(465,300) -- (527,204)

(1,466,066) -568,010 -

1,153,681

20,325,634 6,762,524 (424,122)

619,788 84,500

15,424,735 1,470,889 471,600 1,197,220

218,900

(60,400) 247,385 (196,480)

1,984,828

(583,000) (1,188,571)

224,294 2,378,600

728,359 209,866

(1,055,143) 799,050 (41,168) 1,059,100

(23,900) (574,781)

- 527,000 ( 270,156)

1,500,540 11,932

2,004,020

4,221,928

1,364,400

9,328,882 (6,521,045) (33,920)

36,02 7,904 25,931,013


Billilnce b/ d Islaml Bank Bangladesh Ltd.

Jamuna Oil Company Ltd. KOS Accesso<ies Ltd. Keya Cosmetics Ltd. Khan Brottlers PP Woven Bag Industries Ltd Khulna Power Company Ltd. Lanka Bangia Finance Ltd. LR Global Bangladesh Mutual Fund One LRGB Strategk Investment Fund M. I. Cement factory Ltd. Malek Spinning Mills Ltd.

Matin Spinning Mills Ltd. MBL 1st Mutual Fund Meghna Ufe Insurance Company Ltd.

Meghna Petroleum Ltd.

Mercantile Bank Ltd. MJL Bangladesh Ltd. Mozaffar Hossain Spinning Mills Ltd. Nationa l Credit and Commerce Bank Ltd. National Feed Mill Ltd. Navana CNG Ltd.

NU First Mutual Fund Oiympk Accessories Ltd.

Olympk Industries Ltd.

ONE Bank Ltd. Orion Pha rma Ltd. Padma Oil Company Ltd.

Peoples Leasing and Financial Services Ltd. Phoenix Insurance Company Ltd.

Pioneer Insurance Company Ltd. Popular Ufe Insurance Company Ltd.

Pragati Insurance Ltd. Premier Cement Mills Ltd. Rangpur Dairy & Food Products Ltd. Reckitt Benckiser Bangladesh Ltd. Reliance Insurance Ltd.

Renata Ltd. Rupall Insurance Company Ltd.

S. Alam Cold Rolled Steels Ltd. Saiham Cotton Mills Ltd.

Salham Textile Mills Ltd. Sandhani Ufe Insurance Company Ltd. Shahjalal Islam! Bank Ltd. Shahjibazar Power Co. Ltd.

Shasha Denims Ltd. Shurwid Industries Ltd. Simtex Industries Ltd.

Singer Bangladesh Ltd.

Social Islam! Bank Ltd. Southeast Bank Ltd.

Square Pharmaceutka ls Ltd. Square Textile Ltd. Standard Bank Ltd.

Summit Alliance Port Ltd. Summit Power Ltd. The City Bank Ltd. ntas Gas Transmission & Distribution Company Ltd. Unique Hotel & Resorts Ltd United Airways (BD) Ltd.

United Commercial Bank Ltd. United Power Generation & Distribution Company Ltd. Uttara Finance & Investments Ltd. Zaheen Spinning Ltd.

19.2 Gilln I (Loss) from Non·Usted Securities Guardian Healthcare Ltd. Property Investors Ltd.

Details are given below:

~ ... ndependerc rnen-ber d

BAKER TILLY I NTERNATIONA L

Nil me of the Compiiny

Gua rdian Healthcare Ltd. PrOPertv Investors Ltd.

No. of ~ ..... 580 000

29 692

Per Unit Totill Cost t'.nct

10.00 5 800 000 1 000.00 29 692 000

35,492,000

15

Amount in Tiika

2o15 I I 2o 14

36,0 27,904 25,9 31,0 13 . (191,300)

(668,929) 1,746,950 1,244,951

. 190,670

. 1,837,050

637,850 110,920 186,000

(11,384,100)

880,228 (353,417)

(1,504,406) .

587,360 . 2,313,450 . (192, 141)

(4,209,240) 188,400 . 508,900

(216,4 50) . . 1,984,750 . (335,625)

1,514,851 . . 362,740

15,500 1,048,200

15,361,020 1,721,909

124,256 (3,877,188) . (4,402,461) (915,090)

. 83,948 (265,350)

(598,250) . . 94,050

(544,004) . . (2,778) . 111,000 . 2,855 . ( 2,280)

11,810 3,478,882 (296,808) .

. (1,363,000)

( 2,301,417) . (824,705) .

. (18,996)

. (203,400)

. 344,020

360,803 . . 934,150

616,542 . 106,442 1,305,400

. (404,615)

. 1,042,050 15,697,191 11,597,152

. 427,764

(277,000)

1,703,056 139,176 (37,730)

551,296 395,195 (25,955,736) 6,706,570

(3,798,362) (683,940) . ( 28,120)

4,800 946,380 5,434,977

(1,055,050) .

324,300 .

30,318,503 49,7 14,292

(7,692.~) 1 ~..I _ _ __ :.........J

(7,692,000)

Per Unit Totill Sell Realized ~I Pri.-" p.;..., I nee

10.00 5 800 000 . 740.94 22 000 000 7 692 000

27 800,000 7 692,000


20 Dividend income AIBL 1st Islamic Mutual Fund Apex Footwear Limited Asia Insurance Limited Bangladesh General Insurance Company Ltd. Bangladesh Submarine cable Company Ltd Bank Asia Limited Bata Shoe Company (Bangladesh) Ltd. Bengal Windsor Thermoplastics Ltd. Berger Paints Bangladesh Limited Beximco Pharmaceuticals Ltd. BRAC Bank Limited British American Tobacco Bangladesh Company Ltd. BSRM Steels Ltd. CAPM UNIT Fund Delta Life Insurance Company Limited Dhaka Bank Ltd. Dhaka Electric Supply Company Ltd. Eastern Bank Limited Eastland Insurance Company Limited Emerald Oil Industries Ltd. Envoy Textile Mills Ltd Far East Knitting & Dyeing Industries Limited Golden Harvest Agro Industries Ltd. GrarneenPhone Limited Green Delta Insurance Company Ltd. Heidelberg Cement Bangladesh Limited IDLC Finance Limited !FAD Autos limited Isiami Bank Bangladesh limited Jamuna Oil Company Ltd. Khulna Power Company Limited Lanka Bangia Finance Limited LR Global Bangladesh Mutual Fund One

M.I. Cement Factory Limited Malek Spinning Mills Ltd. Matln Spinning Mills Ltd. Meghna Life Insurance Co. Ltd. Meghna Petroleum Limited Mercantile Bank Limited MJL Bangladesh Limited NatiOnal Credit and Commerce Bank Ltd. Olympic Industries Ltd. One Bank Limited Orion Pharma Limited Padma Oil Company Ltd. Phoenix Insurance Company Ltd. PIOneer Insurance Company Limited Pragati Insurance Limited Premier Cement Mills Limited Prime Bank Limited Reliance Insurance Ltd. Renata Ltd. Rupall Insurance Company Limited S. Alam Cold Rolled Steels Ltd. Salham Cotton Mills Limited Salham Textile Mills Ltd. Sandhani Life Insurance Company Ltd. Singer Bangladesh Ltd. Shasha Denims Limited Social Islami Bank Limited Southeast Bank 1st Mutual Fund Southeast Bank Limited Square Pharmaceuticals Limited Square Textile Limited Standard Bank Ltd . Summit Power Ltd. The City Bank Limited Tltlls Gas Transmission & Distribution Co. Ltd UniOn capital Limited Unique Hotel & Resorts Ltd. United Commercial Bank Ltd. Uttara Finance and Investments Ltd.

~ on~membe.-d BAKER TILLY INTERNATIONAL

16

Amount in Taka 2o15 I I 201•

130,526

69,600

508,225

704,000

180,000

161,600 1,200,000

156,282

180,000

1,200,000

82.700

2,788 123,100

120,000

39 2,861,100

785,000 122,500

383,000 13,657,827

173,910

626,100

912,368 750

266,881 73,500

53,500

16,161 190,800 731,250

15,000

26,256

62

27,931

812,500 562,500

1,112,916 209,308

10,000 2,178,705

3

30,995,654

1,391,250

15,750

200

181,250 676,200

321,200 81,326

2,600

57,000

20,900 15,356

17 1,052,100

19,500 88,000

119,876 119,100 36,900

127,900

195 1,558,000

300

16,000 130,500

118 187,500

6,828,916

208,728 139,350

11,100

790,780 173,120

75,000 130,000

223,500 300,000

25,000

19,215

286,200 611,875

2,505 185

78,000

351,750 88,350

572,000

81,180

383,200 712,761

190,260

16,800

2,128,000

12 210,500 357,700 105,600

2 &047,585

Amount in Talal

2o1s I I 2o14

21 Other income 18,870

Based on CDBL's decision to reimburse a portion of its billing income to Its clients as cash back rebate, the share of cash back rebate for the mutual fund has wori<ed out to Tk. 18,870.

22 Earnings per u nit

Net income for the year (A)

OUtstanding number of units (B)

Earnings per unit (A7B)

23 Contingency

50,355,491

108,503,401

0 .4641

35,060,855

108,503,401

0 .3231

On 19 March 2015 BSEC, upon investigation concluded that the Asset Management Company (AMC) of NCCSL Mutual Fund-1 has not complied with certain Rules of Bangladesh Securities and Exchange Commission (Mutual Fund) Rules, 2()()1 and gave the following decisions:-

( a) That the AMC will have to refund Tk. 59,400,000 and Tk. 3,162,910 to different mutual funds managed by them which they have withdrawn unlawfully on account of offlce and administrative expenses and legal expenses respectively by 30 June 2015;

(b) That the AMC will have to bring back the equity investments (not approved by BSEC) made In violation of the rules out of the different various mutual funds managed by the AMC by 30 June - such equity Investments amounted to Tk. 485,680,500 as on 30 June 2014. In case there is any loss in bringing back the above amount, the same will either be borne from the AMCs own account or by the directors of the AMC from their personal accounts;

(c) That the bank accounts opened and operated and FOR saving accounts operated at comparatively lower Interest rates out of those funds under the management of the AMC will have to be closed and the amount have to be transferred into bank accounts having comparatively higher interest rates and subject to discussion with the trustee by 30 April, 2015.

BSEC then gave directive to execute the decisions in (a) & (b) above within the tlmeframe given and the decision In ( c) above by 30 April 2015

The AMC filed appeals and review application to BSEC on 15 April 2015 and at the same time submitted appllcation(s) seeking an adinterim order of stay on the operation of the BSEC decision and BSEC directive. However without passing any order on the same appllcation(s), BSEC proceeded to fix the next date of hearing of the said appeals on 07 May 2015. On that date, the AMC again tiled application to BSEC seeking a decision on aforesaid applications. However, since BSEC were not passing any order In relation to the same, the AMC preferred to file Writ Petition no. 4800 of 2015 ("the Writ Petitionj before the Hon'ble High Court Division of the Supreme Court of Bangladesh challenging the aforesaid inaction of BSEC. But soon thereafter on 10 May 2015, BSEC stayed the operations of the BSEC decision and directive until d isposal of the aforesaid appeals and review petition to BSEC. The AMC received the BSEC Stay Order on 10 May, 2015 and informed the Hon'ble Court of the same vide a supplementary affidavit that was filed under the Writ Petition. The Hon'ble Court vide its order dated 12 May, 2015 was pleased to, Inter alia, stay the all further proceedings of the aforesaid appeals and review petition dated 15 April, 2015 to BSEC. Meantime, the AMC, as instructed by the trustee and in normal course of business prior to the stay order, Initiated certain actions including the following: -I) Recognized Tk. 2,921,639 as account receivables from AMC - this is a part of the relevant amount of this Fund with regard to BSEC s decision (a) above; the remaining part not yet recognized or refunded is Tk. 2,974,231. OUt of the total amount of Tk. 59,400,000 and Tk. 3,162,910 as In (a) above, Tk. 5,895,870 and Tk. 502,155 were charged to NCCBL Mutual Fund-1 on account of offiCe and administrative expenses and legal expenses respectively; ii) Redeemed preferer~ee shares amounting to Tk. 35,492,000 (redeemed at Tk. 27,800,000) of the Fund and recognized the loss iocurred amounting to only Tk. 7,692,000 in the accounts of this Mutual Fund. This has been done since there is no legal bar towards the Mutual Fund having such a loss and offset by gains recognized in other part of the portfolio. Out of the equity investments (not approved by BSEC) amounting to Tk. 485,680,500, as In (b) above, Tk. 99,217,870 was from NCCBL Mutual Fund-1; and iii) Closed the FOR saving accounts and invested In new FOR saving accounts during the period from 13 April 2015 to 27 July 2015. This Is with regard to BSECs decision (c) above.

24 Events a fter the reporting period The Board of Trustees of the Fund has approved dividend at the rate of Tk. 0.65 Per unit i.e. 6.50% for the year ended 31st December 2015 at the meeting held on 14 March 2016.

~ an~merrberd BAKER TILLY INTERNATIONAL

~ ~- ). ~ Bangladesh General Insurance Company lin-fed

Trustee

17

LR Global Bangladesh Asset Management Company limited

Asset Manager

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Sector Name of the Company

__!.._ Bank Asia Limited

2 The City Bank Limited

3 Eastern Bank Ltd.

4 Bank Mercantile Bank Limited -_2_ Prime Bank Limited

....§_ Southeast Bank Limited

7 Trust Bank Limited

Cement Heidelberg Cement Bangladesh Limited

Premier Cement Mills Limited

NCCBL MUTUAL FUND - 1 Details of investment in Listed Securities


Avg. Cost Total Cost

440,595 10.47 4,613,522

600,000 16.55 9,927,020 525,000 27.41 14,388,980

942,368 14.26 13,436,749

489,500 24.02 11,759,000

426,458 20.92 8,921,506

1,000,000 20.33 20,330,524

83,377,301

501.12 31,079,731

102.15 9,745,202

40,824,933

Annexure A

(Amount in Taka)

Market Value

16.50 7,269,818 2,656,296

20.40 12,240,000 2,312,980

28.60 15,015,000 626,020

10.70 10,083,338 (3,353,412}

18.10 8,859,950 (2,899,050)

17.60 7,505,661 (1,415,845}

24.10 24,100,000 3,769,476

85,073,766 1,696,465

562.10 34,861,442 3,781,711

76.80 7,326,720 (2,418,482)

42,188, 162 1,363,229

I 1 I Engineering IIFAD Autos Limited I 196,849 I 79.73 1 15,695,682 I 92.20 I 18,149,478 I 2,453,796 I

15,695,682 18,149,478 2,453,796

r-1- Financial IDLC Finance Ltd. 545 471 40.84 22 274 979 63.60 34 691 956 12 416 977

2 LankaBangla Finance Limited 421,300 49.59 20,893,776 29.00 12,217,700 (8,676,076) 1--- Institution

3 Union capital Limited 2,529,267 23.41 59,208,201 14.50 36,674,372 (22,533,830)

102,376,956 83,584,027 (18,792,929)

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Sector Name of the Company Avg. Cost Total Cost Market Value Total Market

Value

I 1 I Fuel & Power I MJL Bangladesh Limited I 122,377 I 107.22 1 13,120,890 I 94.30 I 11,540,151 I (1,580,739)1

13,120,890 11,540,151 (1,580,739}

I 1 I Insurance I Pioneer Insurance Company Limited I 93,750 I 33.37 1 3,128,050 I 32.60 I 3,056,250 I (71,800) I

~ AIBL 1st Islamic Mutual Fund

~ Mutual Funds* First Ba ngladesh Fixed Income Fund

LR Global Bangladesh Mutual Fund One

4 Southeast Bank 1st Mutual Fund

1 Active Fine Chemicals Limited

2 AFC Agro Biotech Limited

3 Pharmaceuticals Beximco Pharmaceuticals Limited -4 Renata Limited -5 Square PharmaceutLc~lsLtd.

Tannery !Apex Footwear Limited Industries Bata Shoe Company Limited

1,997,500

6,674,081

13,657,827

652,554

139,188

420,022 500,000

19,247 468,667

7.20

7.70 8.85

8.93

59.27

58.29 84.30

1,233.45 183.57

404.03

916.65

3,128,050 3,056,250 (71,800)

14,375,798

51,410,951 120,804,098

5,827,438 192,418,285

8,249,076

24,484,950

42,150,000

23,740,183

86,032,607

184,656,816

9,588,401

20,166,200

29,754,601

7.30

6.30 5.50

9.20

56.20

65.80

84.10

1,233.10

253.70

347.20

1,317.70

14,581,750

42,046,710 75,118,049

6,003,497 137,750,006

7,822,366

27,637,448

42,050,000

23,733,476

118,900,818

220,144,107

8,239,750

28,989,400 37,229,150

205,952

(9,364,240)

(45,686,050)

176,059 (54,668,279)

(426,710)

3,152,497 (100,000)

(6,708)

32,868,211

35,487,291

7,474,549

[ TJ Telecom ]Grameenphone Ltd. I 70,000 I 267.70 I 18,739,000 I 253.00 I 17,710,000 I (1,029,000)] 18,739,000 17,710,000 (1,029,000)

1 - Envoy Textile Mills Ltd. 1,690 43.82 74,060 41.90 70,811 (3,249)

2 - Far East Knitting & Dyeing Industries Limited 271,480 27.68 7,513,310 16.50 4,479,420 (3,033,890)

3 Textile Matin Spinning Mills Ltd. 232,000 - 44.21 10,255,620 40.70 9,442,400 (813,220)

__i_ R.N. Spinning Mills Limited 670,000 30.97 20,748,709 22.10 14,807,000 (5,941,709)

5 Square Textile Limited 115,107 74.81 8,611,163 75.50 8,690,579 79,415 47,202,862 37,490,210 (9,712,653)

Grand Total 731,295,376 693,915,306 (37,380,069)

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* Details calculation of provision requirement for Mutual Funds as per BSEC directive**

Ticker Share No. of Unit Cost Price M arket Price Unrealized Loss Last 85% NAV Unrealized Loss Unrealized Loss

(11<.) (11<.) (based on M P) (11<./ share I (based on NAV) Recovery

AIBL1STI MF AIBL 1st Islamic Mutua l Fund 1 997 500 7.20 7.30 205 952.20 10.11 0.00 0.00 FBFIF Fi rst BanJ;!Iadesh Fixed Income Fund 6 674 081 7.70 6.30 (9 364 240.29' 9.18 0.00 9 364 240.29 LRGLOBMF1 LR Global Banglades h Mutual Fund One 13 657 827 8.85 5.50 (45 686 049.75 8.70 (1 926 372.041 43 759 677.71 5EBL1STMF Southeast Bank 1st Mutual Fu nd 652 554 8.93 9.20 176 058.60 10.4 1 0.00 0.00

*'*If 85% of NAVis greater than acquisition cost, value was taken at cost, if less taken 85% of NA V. Investment in mutual fund has been made as per Bangladesh Securities and Exchange CcJmmission circular ref. no. 85EqMukhopatro/2011/1972 dated 29 June 2015.

1. The Fund has invested in other two (02) mutual funds managed by the same Asset Management Company as disclosed in the Prospectus duly approved by Bangladesh Securities &. Exchange Commission. The Trustee in their letter dated 21 September 2014 informed that the Fund cannot make investments from one fund/scheme to another fund/scheme managed by the same Asset Management Company as per Bangladesh Securities & Exchange Commission (Mutual Fund) Rules, 2001 . Accordingly, the AMC has decided not to invest any more fund in a fund/scheme managed by the same AMC and at the same time, necessary arrangements have been taken to regularize the matter in the light of above regulations. The investments from one fund/scheme to another fund/scheme managed by LR Global Asset Management Company has been reduced by approx. 3% for the year ended December 31, 2015 from the previous year considering the acquisition cost of the shares.

2. Investment in R. N. Spinning Mills Limited and Guardian Healthcare Limited and Thyrocare Bangladesh Limited are stand off investment as these companies did not pay any dividend for last two (02) years.

• " ~

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NCCBL MUTUAL FUND - 1 Details of investment in Non-Listed I nvestment


Sl. Non - Listed Investment No of Share

1 Mutual Fund 30,000 2 Non-Listed Ordinary Shares 96,287 3 Redeemable Preference Shares 4,945,500 4 Unsecured subordinate bond/Corporate Bond 1,500,011

6,571,798

Mutual Fund

Name of the Company No of Shares Revalued Rate

1.1 CAPM Unit Fund 30,000 100.00

30,000

Non-Listed Ordinary Shares


2.1 Guardian Healthcare Limited 96,287 0.00 96,287

Redeemable Preference Shares


4,945,500 0.00 4,945,500

Unsecured subordinate bond/Corporate Bond

Note Name of the Company No of Shares Face Cost per Revalued Rate

VaiUil'! .share 4.1 United Commercial Bank Ltd.(Unsecured Subordinate Bond} 10 1,000,000 1,000,000 1,000,000 4.2 Trust Bank Ltd. Subordinated Bond 1 6,000,000 6,000,000 6,000,000 4 .3 Guardian Healthcare Ltd. 1,500,000 10 10 10

1,500,011

Calculation of provision against erosion of value of securities

Required Provision for Listed Securities Annex A (37,380,069) Provision Recovery in Mutual Funds based on NAV valuation Annex A 53,123,918 Provision required for Non Listed Securities Annex B (50,417,870) Net Provision Reauired at the end of the oeriod (34 674 021) Less: Provision maintained last year 42,434,817 (Provision) I Write back of provision 7,760,796

Cost price Revalued Amount

3,000,000 3,000,000 962,870 -

49,455,000 -31,000,000 31,000,000

84,417,870 34,000,000


3,000,000 3,000,000 3,000,000 3,000,000


962,870 962,870


49,455,000 49,455,000


10,000,000 10,000,000

6,000,000 6,000,000 15,000,000 15,000,000

31,000,000 31,000,000

Annexure B

Unrealized Gain/ flo,;,;\

-(962,870)

( 49,455,000)

-(50,417,870)

(962,870)

(49,455,000)

Unrealized Gain/ Closs}

---

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NCCBLMF1_Audited Financial Statements, Dec, 2015.pdf

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