BACKGROUND INFORMATION
1.1 Establishment and status of the Bank
Agrani Bank Limited (the Bank) has been incorporated as a Public Limited Company on May 17, 2007 Vide Certificate of Incorporation # C-66888(4380)/07. The Bank has taken over the business of Agrani Bank (emerged as a Nationalized Commercial Bank in 1972, pursuant to Bangladesh Bank (Nationalization) Order # 1972 (P.O. # 26 of 1972)) on a going concern basis through a Vendor Agreement signed between the Ministry of Finance of the People’s Republic of Bangladesh on behalf of Agrani Bank and the Board of Directors on behalf of Agrani Bank Limited on November 15, 2007 with a retrospective effect from July 01, 2007. The Bank’s current shareholdings comprise Government of the People’s Republic of Bangladesh and other 12 (Twelve) shareholders nominated by the Government. The Bank has 876 branches as on December 31, 2011. The Bank has four wholly-owned subsidiary Companies named (a) Agrani Exchange House (Pvt.) Ltd. in Singapore, (b) Agrani Remittance House SDN, BHD in Malaysia, (c) Agrani Equity and Investment Limited and (d) Agrani SME Financing Company Limited.
1.2 Nature of business
The principal activities of the Bank are providing all kinds of commercial banking services to it’s customers and the principal activities of it’s subsidiaries are:
a) To carry on the remittance business and to undertake and participate in any or all transactions, and operations commonly carried or undertaken by remittance and exchange houses established in Singapore and Malaysia.
b) To vibrant the Micro credit activities over the country, the Bank has established a subsidiary company named Agrani SME Financing Company Limited as per Government decision which has got registration from Registrar of Joint Stock Companies vide certificate of incorporation no. C87827/10 dated October 27, 2010. The company has also got permission from Bangladesh Bank to start the operation as a non-banking financial institution.
c) To develop the capital market of the country the Bank has also open another subsidiary company named Agrani Equity and Investment Limited for providing necessary support to the Investors which has been incorporated as a Public Limited Company on March 16, 2010 vide Certificate of Incorporation No. C- 8357/10.
2. SIGNIFICANT ACCOUNTING POLICIES
2.1 Scope and objective
The accounting policy comprises principles and basic assumptions, concepts, conventions , rules, practices, and procedures adopted by the management for reporting the activities of the Bank and financial statements preparation and presentation. The purpose of accounting policy is to provide the necessary organizational and methodological directions in carrying the accounting activities of the Bank.
2.2 Basis of preparation of Financial Statements
The Financial Statements have been prepared as at December 31, 2011 in accordance with the "First Schedule" of the Bank Companies Act, 1991 as amended under sub-section 38 (4) of that Act, Bangladesh Bank's Circulars and International Financial Reporting Standards (IFRS) as adopted by the Institute of Chartered Accountants of Bangladesh (ICAB) and other rules and regulations applicable in Bangladesh on a going concern basis under historical cost convention. During the year 2010 the bank has started activities on Islamic principle as a separate unit in five branches. Operational results and performances of those units have been incorporated in the total activities of the bank. However, Balance sheet and profit and loss account of those Islamic Banking Units are shown separately in Annexure-I.
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1.1 Establishment and status of the Bank
Agrani Bank Limited (the Bank) has been incorporated as a Public Limited Company on May 17, 2007 Vide Certificate of Incorporation # C-66888(4380)/07. The Bank has taken over the business of Agrani Bank (emerged as a Nationalized Commercial Bank in 1972, pursuant to Bangladesh Bank (Nationalization) Order # 1972 (P.O. # 26 of 1972)) on a going concern basis through a Vendor Agreement signed between the Ministry of Finance of the People’s Republic of Bangladesh on behalf of Agrani Bank and the Board of Directors on behalf of Agrani Bank Limited on November 15, 2007 with a retrospective effect from July 01, 2007. The Bank’s current shareholdings comprise Government of the People’s Republic of Bangladesh and other 12 (Twelve) shareholders nominated by the Government. The Bank has 876 branches as on December 31, 2011. The Bank has four wholly-owned subsidiary Companies named (a) Agrani Exchange House (Pvt.) Ltd. in Singapore, (b) Agrani Remittance House SDN, BHD in Malaysia, (c) Agrani Equity and Investment Limited and (d) Agrani SME Financing Company Limited.
1.2 Nature of business
The principal activities of the Bank are providing all kinds of commercial banking services to it’s customers and the principal activities of it’s subsidiaries are:
a) To carry on the remittance business and to undertake and participate in any or all transactions, and operations commonly carried or undertaken by remittance and exchange houses established in Singapore and Malaysia.
b) To vibrant the Micro credit activities over the country, the Bank has established a subsidiary company named Agrani SME Financing Company Limited as per Government decision which has got registration from Registrar of Joint Stock Companies vide certificate of incorporation no. C87827/10 dated October 27, 2010. The company has also got permission from Bangladesh Bank to start the operation as a non-banking financial institution.
c) To develop the capital market of the country the Bank has also open another subsidiary company named Agrani Equity and Investment Limited for providing necessary support to the Investors which has been incorporated as a Public Limited Company on March 16, 2010 vide Certificate of Incorporation No. C- 8357/10.
2. SIGNIFICANT ACCOUNTING POLICIES
2.1 Scope and objective
The accounting policy comprises principles and basic assumptions, concepts, conventions , rules, practices, and procedures adopted by the management for reporting the activities of the Bank and financial statements preparation and presentation. The purpose of accounting policy is to provide the necessary organizational and methodological directions in carrying the accounting activities of the Bank.
2.2 Basis of preparation of Financial Statements
The Financial Statements have been prepared as at December 31, 2011 in accordance with the "First Schedule" of the Bank Companies Act, 1991 as amended under sub-section 38 (4) of that Act, Bangladesh Bank's Circulars and International Financial Reporting Standards (IFRS) as adopted by the Institute of Chartered Accountants of Bangladesh (ICAB) and other rules and regulations applicable in Bangladesh on a going concern basis under historical cost convention. During the year 2010 the bank has started activities on Islamic principle as a separate unit in five branches. Operational results and performances of those units have been incorporated in the total activities of the bank. However, Balance sheet and profit and loss account of those Islamic Banking Units are shown separately in Annexure-I.
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