ILFSL-Annual-Report-2021-f

Amount in Taka December '21 December '20 35.00 Other expenses Fuel & Repair expenses for vehicles 1,242,267 510,248 Fuel and Power for generator 155,000 129,750 Office Maintenance 1,850,855 Fees and subscription 1,921,750 License and renewal 118,302 82,154 Bank charges 407,560 Entertainment 244,098 562,678 Business development expenses 775,563 896,594 Loan processing fee 174,900 502,760 CDBL charges & BO maintenance fee 230,759 620,000 Special Audit fee 778,844 Training expenses - Travelling and conveyance 1,000,000 - Internet and connectivity - - 1,500 385,941 104,139 1,526,151 1,567,601 8,961,135 6,828,279 36.00 Tax expenses Current tax Prior yer tax expenses 3,065,497 7,398,176 Tax paid on brokerage income (note- 36.1) - 8,954,535 17,080,230 32,201,927 33,432,941 35,267,423 36.01 Taxpaidon brokerageincomerepresentstax deductedat sourceby DSEandCSEon theturnoveras persection53BBB & u/s 82 ('C) of Income Tax Ordinance 1984. 37.00 Earnings per share (EPS) Basic earnings per share have been calculated as under: Earning attributable to ordinary shareholders (profit after tax) (23,061,053) (137,217,703) Number of ordinary shares outstanding during the year 10,000,000 10,000,000 Earning per share (EPS) (2.31) (13.72) 38.00 Related party disclosure The company has entered into various transactions with its parent company International Leasing and Financial Services Limited (ILFSL) during the year. The balance of transactions with ILFSL as of Decem- ber 31, 2021 stands at Tk. 2,625.85 million (including accrued interest) as Payable against Loan and Tk. Nil as receivable against Fixed Deposit Receipt (FDR). As of December 31, 2020 the amounts were Tk. 2,479.26 million and Tk. 165.73 million (including accrued interest) respectively. Annual Report 2021 International Leasing  199

39.00 Number of employees Company has 55 number of employees as on December 31, 2021. 40.00 Events after balance sheet date (IAS- 10) There is no significant event after the balance sheet date. 41.00 Approval of financial statements These financial statements were approved by the Board of Directors in their meeting held on April 17, 2022 for placement in the AGM of the Company. 200 Annual Report 2021  International Leasing

INTERNATIONAL LEASING SECURITIES LIMITED Annexure - 1 Schedule of Fixed Assets As at December 31, 2021 COST DEPRECIATION Amount in tk. Particulars Balance as at Addition Adjustment/ Balance as at Rate Balance as at Charged Adjustment/ Balance as at Written down January 01, during the Disposal during December 31, (%) January 01, during the value as at Disposal during December 31, December 31, 2021 period the period 2021 2021 period the period 2021 2021 Annual Report 2021 International Leasing  201 Motor vehicles 8,184,000 - - 8,184,000 20% 8,183,997 - - 8,183,997 3 Office decoration 10,076,812 - Office equipment - - 10,076,812 15% 7,317,985 941,515 - 8,259,500 1,817,312 Furniture & fixtures 7,479,544 - Computers & accessories 1,255,468 16,500 - 7,479,544 20% 6,654,059 693,705 - 7,347,764 131,780 Total as at December 31, 2021 9,356,818 16,500 36,352,642 - 1,255,468 15% 1,042,274 77,017 - 1,119,291 136,177 Total as at Deember 31, 2020 - 9,373,318 33% 9,056,146 204,240 - 9,260,386 112,932 - 36,369,142 32,254,462 1,916,476 - 34,170,938 2,198,204 39,873,016 692,288 (4,212,662) 36,352,642 33,774,403 2,512,543 (4,032,484) 32,254,462 4,098,180

IL Capital Limited Overview of The Company Directors of The Company Management Team Independent Auditor’s Report Statement of Financial Position Statement of Profit or Loss Statement of Other Comprehensive Income Statement of Cash Flows Statement of Changes in Equity (Restated) Notes to the Financial Statements Schedule of Fixed Assets Schedule of Investment in Shares (Own Portfolio) 202 Annual Report 2021  International Leasing

Overview of the company IL Capital Limited (ILCL) is a private limited company incorporated in Bangladesh under the Companies Act, 1994 on 24th November, 2010 bearing registration no. C-88312. It was awarded with a full-fledged merchant banker license on 4th April, 2012 by Bangladesh Securities And Exchange Commission (BSEC).The company is wholly owned by International Leasing and Financial Services Limited (ILFSL). The registered office address of the company is at Hossain Tower (2nd Floor), 116, Bir Protik Gazi Golam Dostogir Road, Naya Paltan, Dhaka 1000. IL Capital Limited offers all kinds of investment banking services such as issue management, corporate advisory, IPO advisory and underwriting of securities; and wealth management services like portfolio advisory, portfolio management and providing of margin loan to the clients and investors with attractive features and at low cost. It offers some very attractive discretionary portfolio management products like Secured Plan, Extra Income Plan, Income Sharing Plan, Shariah Plan, and Portfolio Advisory Services through which investors can build their wealth. The short descriptions of the products are mentioned below: Secured Plan: With this plan, our experienced portfolio managers help investors to make investment decision on behalf of the clients. They try to maximize investors' wealth by building a good portfolio which is expected to provide consis- tent return. Extra Income Plan: With this plan, the portfolio manager will construct your portfolio in a much disciplined way and with very small deposit of money at monthly basis or on a regular basis. It is a capital market DPS plan with specific maturity period. Anybody with very small amount of money can start this plan. Income Sharing Plan: \"Income Sharing Plan\" refers to 70:30 incentive plan with a hurdle rate of 10 percent p.a. We will try to maximize your wealth by trying to provide double digit return over the hurdle rate. The main theme of this plan is -\"Clients earn first, then us. We will earn if our customer earns.\" Shariah Plan: With this plan, your portfolio will be governed under Shariah Principles approved by renowned Islamic Scholars of the world. We will invest your money in the companies of CSC (Chittagong Stock Exchange) All Shariah Index which is based on Shariah Guidelines of TASIS (Taqwaa Advisory & Shariah Investment Solutions Pvt Limited). Portfolio Advisory Service: This is a discretionary portfolio management service which is focused on reconstruction of existing portfolio by the portfolio managers of IL Capital Limited. Annual Report 2021 International Leasing  203

IL Capital Limited Directors of the Company Name Designation Mr. Shyamal Kanti Ghosh Chairman Brigadier General Md. Meftaul Karim BSP, SPP, BPM, ndc, psc (LPR) Director Mr. Emdad Hossain Sheikh Director Mr. Md. Mashiur Rahman Director Management Team Name Designation Mr. Omar Faruq Mr. Md. Maruf Sikder Chief Executive Officer Mr. Md. Mominul Hoque Head of Accounts & Finance and Chief Anti-Money Laundering Compliance Officer (CAMLCO) Assistant Manager - Information Technology 204 Annual Report 2021  International Leasing

Independent Auditor’s Report To the shareholders of IL Capital Limited Report on the audit of the Financial Statements Opinion We have audited the financial statements ofIL Capital Limited,which comprisethe Statement of Financial Position as at 31 December 2021, and the Statement of Profit or Loss and Other Comprehensive Income, Statement of Changes in Equity and the Statement of Cash Flows for the year then ended, and notes to the financial statements including a summary of significant accounting policies. Inour opinion, the accompanying financial statements give true and fair view, in all material respects, of the financial position of the Company as at 31 December 2021 and of its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRSs), the Companies Act 1994 and other applicable laws and regulations. Basis for Opinion We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the Internation- al Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (IESBA Code) together with ethical requirement that are relevant to our audit of the financial statements in Bangladesh, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Responsibilities of Management and Those Charged with Governance forthe Financial Statements and Internal Controls Management is responsible for the preparation and fair presentation of the financial statements in accor- dance with International Financial Reporting Standards (IFRSs), and for such internal control as manage- ment determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. The Companies Act, 1994 require the management to ensure effective internal audit, internal control and risk management functions of the company. In preparing the financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the financial reporting process. Auditors’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’report that includes our opinion. Reasonable assurance is a high level of assurance, butis not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Annual Report 2021 International Leasing  205

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. • Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern. • Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. Report on other Legal and Regulatory Requirements In accordance with the Companies Act 1994, we also report the following: (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 those books; (c) the statement of financial position and statement of comprehensive income dealt with by the report are in agreement with the books of account and returns; Dhaka, Sd/- Hoque Bhattacharjee Das & Co. Date: April 13, 2022 DVC:2204120824AS742686 Chartered Accountants Signed by Avijit Bhattacharjee, FCA Partner Enrolment No: 824 206 Annual Report 2021  International Leasing

IL Capital Limited Statement of Financial Position As at December 31, 2021 Particulars Notes Amount in Taka December 2021 December 2020 ASSETS 6.00 1,001,933 1,342,035 Non-current assets 5.00 2,500,000 2,500,000 Property, plant and equipment 3,501,933 3,842,035 Investment in pre IPO share Total non-current assets Current assets 8.00 9,632,031 16,274,803 Other assets 7.00 4,125,051 3,544,681 Receivable from customers 4.00 188,680,692 Investment in shares and TDRs 3.00 58,401,861 220,596,901 Cash and cash equivalents 260,839,635 12,092,359 Total current assets 264,341,568 252,508,744 Total assets 256,350,779 LIABILITIES Current liabilities 9.00 1,378,850 1,266,718 Payable to customers 10.00 7,959,617 9,717,319 Other liabilities and provisions 9,338,467 10,984,037 11.01 Equity 12.00 250,000,000 250,000,000 Paid- up capital 29,305,734 761,918 Retained Earnings Other comprehensive income (24,302,634) (5,395,176) Total equity 255,003,101 245,366,742 Total liabilities and equity 264,341,568 256,350,779 Net asset value per share 13.00 102.00 98.15 These financial statements should be read in conjunction with the annexed notes 1-30. Sd/- Sd/- Sd/- Sd/- Chairman Director Chief Executive Officer Company Secretary Date: Dhaka Sd/- April 13, 2022 Hoque Bhattacharjee Das & Co. DVC:2204120824AS742686 Chartered Accountants Signed by Avijit Bhattacharjee, FCA Partner Enrollment No: 824 Annual Report 2021 International Leasing  207

IL Capital Limited Statement of Profit or Loss As at December 31, 2021 Particulars Notes Amount in Taka December 2021 December 2020 OPERATING INCOME 14.00 2,356,734 2,051,684 Interest income 15.00 2,356,734 2,051,684 Net interest income 16.00 Commission, fees and charges 425,367 419,680 Income/(loss) from own investment 18.00 37,441,241 (1,598,639) 19.00 37,866,608 (1,178,959) Total operating income (A) 21.00 40,223,341 OPERATING EXPENSES 22.00 872,726 Salary and allowances 23.00 4,002,416 Rent, taxes, insurance, electricity etc. 24.00 3,509,621 2,092,196 Postage, stamp & telecommunication 25.00 3,911,771 Stationery, printing & advertisements 26.00 157,811 Directors' fees & meeting expenses 35,485 139,278 Auditors' fees 27.00 46,000 17,168 Depreciation, amortization and repair of assets 20.00 54,050 57,500 Other expenses 54,050 Total operating expenses (B) 29.00 696,823 Net Operating Income (C=A-B) 1,388,754 522,203 Other Income (D) 9,890,960 775,728 30,332,381 7,569,893 Profit before Provision Tax (E=C+D) (6,697,168) Provision for margin loan (F) 914,452 Profit/(loss) before tax (G=E-F) 31,246,833 - Provision for tax expense (H) (6,697,168) Profit/(loss) after tax (I=G-H) 5,804 Earnings/(Loss) Per Share 31,241,030 3,657 (6,700,825) 2,697,213 28,543,817 827,557 (7,528,382) 11.42 (3.01) These financial statements should be read in conjunction with the annexed notes 1-30. Sd/- Sd/- Sd/- Sd/- Chairman Director Chief Executive Officer Company Secretary Date: Dhaka Sd/- April 13, 2022 Hoque Bhattacharjee Das & Co. DVC:2204120824AS742686 Chartered Accountants Signed by Avijit Bhattacharjee, FCA Partner Enrollment No: 824 208 Annual Report 2021  International Leasing

IL Capital Limited Statement of Other Comprehensive Income As at December 31, 2021 Particulars Notes Amount in Taka December 2021 December 2020 Profit after tax 28.00 28,543,817 (7,528,382) Other comprehensive income: (18,907,458) 16,432,118 Provision for unrealized gain/(loss) on own 9,636,359 8,903,736 portfolio investment Total comprehensive income These financial statements should be read in conjunction with the annexed notes 1-30. Sd/- Sd/- Sd/- Sd/- Chairman Director Chief Executive Officer Company Secretary Date: Dhaka Sd-/ April 13, 2022 Hoque Bhattacharjee Das & Co. DVC:2204120824AS742686 Chartered Accountants Signed by Avijit Bhattacharjee, FCA Partner Enrollment No: 824 Annual Report 2021 International Leasing  209

IL Capital Limited Statement of Changes in Equity For the year ended December 31, 2021 Amount in Taka Particulars Share Capital Retained Other Total Earnings Compresensive Balance as at January 01, 2020 250,000,000 236,463,005 Issuance of Ordinary Share - Income - Profit after tax during the year 2020 - Other comprehensive income - 8,290,299 (21,827,294) (7,528,382) Interim Dividend - 16,432,118 Balance as at December 31, 2020 -- Issuance of Ordinary Share 250,000,000 - Profit after tax during the year 2021 - (7,528,382) - 245,366,742 Other comprehensive income - Interim Dividend - - 16,432,118 - Balance as at December 31, 2021 - 28,543,817 - (5,395,176) (18,907,458) 250,000,000 761,918 - -- 255,003,101 28,543,817 - - (18,907,458) - - 29,305,734 (24,302,634) These financial statements should be read in conjunction with the annexed notes 1-30. Sd/- Sd/- Sd/- Sd/- Chairman Director Chief Executive Officer Company Secretary Date: Dhaka Sd/- April 13, 2022 Hoque Bhattacharjee Das & Co. DVC:2204120824AS742686 Chartered Accountants Signed by Avijit Bhattacharjee, FCA Partner Enrollment No: 824 210 Annual Report 2021  International Leasing

IL Capital Limited Statement of Cash Flows For the year ended December 31, 2021 Particulars Notes Amount in Taka December 2021 December 2020 Cash flow from operating activities 7,697,359 2,128,839 Interest receipts in cash 2,944,040 1,895,111 Dividend receipts in cash Commission, fees and charges 425,367 419,680 Cash payments to employees (4,002,416) (2,092,196) Advance income tax Income receipt from investment 523,543 961,744 Reimbursement of Capital Reserve 34,497,201 (3,493,749) Payments for other operating expenses Other assets 914,452 - Other liabilities (5,330,065) (6,471,322) Net cash inflow/(outflow) from operating activities Cash flow from investing activities (324,396) 884,741 Investment in TDR (3,825,957) 81,497 Investment in Share 33,519,127 Net change against purchase/sale of property, plant and (5,685,655) equipment 178,131,836 Net cash inflow/ (outflow) from investing activities (165,123,084) (1,066,380) 11,677,355 (218,377) - 12,790,375 10,610,975 Cash flow from financing activities - - Net cash inflow/(outflow) from financing activities - - Net cash inflow/(outflow) for the year 46,309,502 4,925,320 Opening balance of cash and cash equivalents 12,092,359 7,167,039 Closing balance of cash and cash equivalents 58,401,861 12,092,359 These financial statements should be read in conjunction with the annexed notes 1-30. Sd/- Sd/- Sd/- Sd/- Chairman Director Chief Executive Officer Company Secretary Date: Dhaka Sd/- April 13, 2022 Hoque Bhattacharjee Das & Co. DVC:2204120824AS742686 Chartered Accountants Signed by Avijit Bhattacharjee, FCA Partner Enrollment No: 824 Annual Report 2021 International Leasing  211

IL Capital Limited Notes to the Financial Statements For the year ended December 31, 2021 1.00 Company and its’ activities 1.01 Corporate information 1.02 2.00 IL Capital Limited (ILCL) is a private limited company incorporated in Bangladesh under the Com- 2.01 panies Act, 1994 on 24th November, 2010 bearing registration no. C-88312. It was awarded with a full-fledged merchant banking license on 4th April, 2012 by Bangladesh Securities And Exchange 2.02 Commission (BSEC). The Company is wholly owned by the International Leasing and Financial 2.03 Services Limited (ILFSL). The registered office address of the company is at Hossain Tower (2nd Floor), 116, Bir Protik Gazi Golam Dostogir Road, Naya Paltan, Dhaka 1000. 2.04 2.05 The main business of the company is to carry out all kinds of investment banking and wealth management services; such as issue management, corporate advisory, IPO advisory, underwriting of securities, portfolio advisory, portfolio management and providing of margin loan to the clients and investors. Basis of preparation and significant accounting policies Statement of compliance The financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business followed accrual basis of accounting except for cash flow statement. In preparation of these financial state- ments the company followed respective provisions of The Companies Act 1994, The Securities and Exchange Rules, 1987 and International Accounting Standards (IASs) and/or International Finan- cial Reporting Standards (IFRSs) and other applicable laws and regulations. Basis of preparation and presentation of the financial statements The financial statements have been prepared under the historical cost convention in accordance with International Financial Reporting Standards (IFRSs) as practiced in Bangladesh. No adjust- ment has been made for inflationary factor affecting the financial statements. Use of estimates and judgment Preparation of the financial statements in conformity with IASs requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the company’s accounting policies that affect the reported amounts of the revenue and expenses, assets and liabilities. Due to involvement of inherent uncertainty in making estimates, actual results could be different from those estimates. Cash flow statements The cash flow statement is prepared using the direct method as stipulated in IAS 7 Statement of Cash Flows. Cash and cash equivalents for cash flow statement comprises mainly of cash in hand and balances at banks. Cash and cash equivalents Cash and cash equivalents comprise cash in hand and cash at bank. 2.06 Recognition of fixed assets and depreciation (IAS 16 Property, Plant and Equipment) Recognition An item of fixed assets is recognized as an asset when it is probable that future economic benefit associated with the asset will flow to the enterprise and the cost of the assets to the enterprise can be measured reliably. The cost of an item of fixed assets is its purchase price (net of discounts and rebates), including import duties and taxes, and any directly attributable cost of bringing the asset to working condition for its intended use. Measurement Fixed assets for own use are stated initially at cost and subsequently at cost less accumulated depreciation and any accumulated impairment losses or at a re-valued amount less any accumulat- ed depreciation and subsequent accumulated impairment losses. 212 Annual Report 2021  International Leasing

Subsequent expenditure Subsequent expenditure relating to any item of fixed assets are added to the carrying amount of the asset when it is probable that future economic benefits, exceeding its present standard of performance, will flow to the company and the cost of the item can be measured reliably. All other costs are recognized in profit and loss account as expense. Depreciation Components of an asset with differing patterns of benefits are depreciated separately. Depreciation on own fixed assets is charged systematically over the assets useful life. Full year depreciation is charged on additions irrespective of date when the related assets are put into use. On the other hand, no depreciation has been charged on the month of disposal. The company follows the straight-line method of depreciation applying annual rates stated as follows: Motor vehicles 20% Office decoration 15% Office equipment 20% Furniture and fixtures 15% Computers & Accessories 33% Disposal or retirement The gain or loss arising out of disposal or retirement of fixed assets is determined as the difference between the sale proceeds and the carrying amount of the assets and is recognized in profit and loss account. 2.07 Revenue recognition \"The core principle of IFRS 15 Revenue from Contracts with Customers is that an entity will recog- nise revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Revenue is only recognised when it meets the following five steps model framework as per IFRS 15 Revenue from Contracts with Customers.\" a) identify the contract (s) with a customers; b) identify the performance obligations in the contract; c) determine the transaction price; d) allocate the transaction price to the performance obligations in the contract; e) recognise revenue when (or as) the entity satisfies a performance obligation.\" 2.08 Interest income from loans and other sources is recognised on an accrual basis of accounting. 2.09 Borrowing cost All borrowing costs are recognized expenses in the period in which they incurred in accordance with benchmark treatment of IAS 23 Borrowing Costs. Tax provision 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 there- to. Deferred tax The company accounts for deferred tax as per IAS 12 Income Taxes. This is provided using the liability method for all temporary timing differences arising between the tax base of the assets and liabilities and their carrying value for financial reporting purposes. Tax rate prevailing at the state- ment of financial position date is used to determine deferred tax asset or liability. culating deferred tax, temporary difference arising from depreciation of fixed assets is considered. Annual Report 2021 International Leasing  213

2.10 Earning Per Share (EPS) 2.11 The Company calculates Earnings per share (EPS) in accordance with IAS 33 Earnings Per Share, 2.12 which is shown in the face of the Statement of Profit or Loss. No diluted earnings per share is 2.13 required to be calculated for the period, as there was no scope for dilution during the period under 2.14 review. Related Party Disclosures \"IAS 24 Related Party Disclosures requires disclosures about transactions and outstanding balances with an entity's related parties. Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Parties are also considered to be related if they are subject to common control or common significant influence. Related party transaction is a transfer of resources, services, or obligations between related parties, regardless of whether a price is charged as per IAS 24 Related Party Disclosures. During the year, the company carried out a number of transactions as a form of Term Deposit with its parent company International Leasing and Financial Services Limited (ILFSL). The transactions fall within the definition of related parties as defined by IAS 24 Related Party Disclosures. The total balance of the term deposits as of the financial statements date is shown under the note no. 4.01 and accrued interest recognised on TDRs is shown under the note no. 8.00 (A). Events after the Reporting Period IAS 10 Events after the Reporting Period contains requirements for when events after the end of the reporting period should be adjusted in the financial statements. Adjusting events are those providing evidence of conditions existing at the end of the reporting period, whereas non-adjusting events are indicative of conditions arising after the reporting period (the latter being disclosed where material). There were no material events have occurred after the reporting period which could affect the values stated in the financial statements. Offsetting Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously. Re-arrangements of figure Previous figures have been re-arranged whenever necessary to confirm current period presentation. 2.15 Reporting currency 2.16 The financial statements are presented in Bangladeshi Taka which is the Company’s functional currency except as indicated. Uniform accounting policies The financial statements of International Leasing & Financial Services Limited and IL Capital Limit- ed have been prepared in accordance with uniform policies of accounting. 214 Annual Report 2021  International Leasing

Amount in Taka December '21 December '20 3.00 Cash and cash equivalents Cash in hand Cash at bank (note- 3.01) 21,756 595 58,380,105 12,091,764 58,401,861 12,092,359 3.01 Cash at bank 54,091,036 8,724,435 One Bank Limited A/C 001300000831 1,789 230,363 One Bank Limited A/C 0013000001073 One Bank Limited A/C 0013000000842 3,330,316 2,604,969 Bank Asia Limited A/C 00836000679 956,965 528,323 City Bank Limited A/C 3102640852001 - 3,674 58,380,105 12,091,764 4.00 Investment in shares and TDRs 188,680,692 42,465,065 Investment in share - 178,131,836 Investment in TDRs with ILFSL (note- 4.01) 220,596,901 188,680,692 4.01 Investment in TDRs with ILFSL 178,131,836 177,065,456 Opening balance - 1,066,380 Add: Investment made during the year - Less: Encashment during the year (178,131,836) - 178,131,836 5.00 Investment in pre IPO share* 2,500,000 2,500,000 *The amount has been invested in Bengal Poly and Paper Sack Limited as pre IPO investment in the year of 2013 (the cheque no. 0727694 dated 26th December, 2013). The company has not been listed yet with the stock exchanges. No dividend has been received until the financial statement date. Only 5% dividend has been declared in the 20th AGM held on 28th March, 2022. 6.00 Property, plant and equipment 19,307,530 19,148,469 Office Decoration 474,379 474,379 Office equipment 846,298 815,021 Furniture & Fixtures Computer & accessories 4,623,225 4,595,186 25,251,432 25,033,055 Less: Accumulated depreciation (24,249,499) (23,691,020) Net book value at the end of the year (Annexure-A) 1,001,933 1,342,035 Annual Report 2021 International Leasing  215

Amount in Taka December '21 December '20 7.00 Receivable from customers 4,125,051 3,544,681 (This represents amount receivable from customers against margin loan provided to them) 8.00 Other assets - 5,340,625 A. Income generating: 914,982 914,982 Interest receivable on TDRs 914,982 Receivable from EPF of ILCL 6,255,607 B. Non-income generating: 200,000 200,000 Advance, deposit and prepaid expenses (note- 8.01) 104,022 104,022 Advance corporate tax paid 4,097,352 4,620,895 Advance tax (tax deducted at source) 3,812,951 4,335,582 Deferred tax asset/(liability) (note-8.02) 516,143 Advance office rent-Hossain Tower - 242,554 Receivable from broker 357,723 Intercompany receivable-ILFSL 145,000 - 8,717,048 10,019,196 Total other Assets (A+B) 9,632,031 16,274,803 8.01 Advance, deposit and prepaid expenses 200,000 200,000 Security deposit CDBL 200,000 200,000 8.02 Deferred tax asset/(liability) 11,169,804 12,903,588 Tax base of fixed assetes 1,001,933 1,342,035 Carrying values of fixed assets as per accounts (Taxable)/ deductible temporary difference 10,167,870 11,561,552 Applicable tax rate 37.5% 37.5% Deffered tax during the year 3,812,951 4,335,582 9.00 Payable to customers 1,378,850 1,266,718 (This represents amount payable to customers against sale of shares and/or the amount deposited by customers for purchase of shares.) 216 Annual Report 2021  International Leasing

Amount in Taka December '21 December '20 10.00 Other Liabilities and provisions 6,833,847 7,112,409 Provision for income tax (Note-10.01) 41,251 35,447 Provision for margin loan 7 7 Unpaid dividend Liability for expenses (Note-10.02) 1,054,512 2,358,456 Fund block account- IPO 30,000 211,000 10.01 Provision for income tax 7,959,617 9,717,319 Opening balance Add: Tax provision during the year (Note-20.00) 7,112,409 9,423,537 Less: Settlement of tax liability 2,174,582 810,554 (2,453,144) 10.02 Liability for expenses & other payables 6,833,847 (3,121,682) Audit fee 7,112,409 Software license fee 46,000 Payable to broker 916,988 46,000 Office Maintenance 916,988 Other payable 3,268 Withholding Tax and VAT 14,190 16,757 Suspense Account - Intercompany Payable 6,154 29,119 1,204 11.00 Share capital 38,794 2,400 Authorized capital 19,503 20,000,000 nos. of ordinary shares of taka 100 each - 1,355,605 1,054,512 2,358,456 2,000,000,000 2,000,000,000 11.01 Issued, subscribed & paid up 250,000,000 250,000,000 2,500,000 nos. of ordinary shares of taka 100 each fully paid. 250,000,000 250,000,000 Composition of shareholdings 100 Amount 100 249,999,900 Particulars No. of shares 249,979,900 100 a) Corporate 2,499,999 20,000 100 International Leasing And Financial Services Ltd. 2,499,799 100 100 100 100 JF (Bangladesh) Limited 200 250,000,000 b) Individual Mr. Jamal Uddin Ahmad 1 1 Total 2,500,000 Annual Report 2021 International Leasing  217

Amount in Taka December '21 December '20 12.00 Retained Earnings 761,918 8,290,299 Opening balance 28,543,817 (7,528,382) Add. Profit after tax for the year 29,305,734 Closing balance 761,918 13.00 Net asset value per share 264,341,568 256,350,779 Total assets 9,338,467 10,984,037 Total liabilities Net asset 255,003,101 245,366,742 Number of share outstanding 2,500,000 2,500,000 Net asset value per share 102.00 98.15 14.00 Interest income 380,929 1,291,434 Interest income from TDRs 1,394,480 253,365 Interest income from savings account 506,885 Interest income margin loan 581,325 2,356,734 2,051,684 15.00 Commission, fees and charges BO account maintenance fee 30,521 28,650 Management fee - 45 Commission CDBL Charge - income 394,021 389,675 PIA processing charge - 734 575 16.00 Income from own investment 825 Realized gain from investment 425,367 419,680 Dividend income 34,497,201 (3,493,749) 17.00 Other income 2,944,040 1,895,111 Reimbursement of capital reserve from EPF of ILCL 37,441,241 (1,598,639) 914,452 - 914,452 - 218Annual Report 2021  International Leasing

Amount in Taka December '21 December '20 18.00 Salary and allowances 3,816,280 1,993,533 Basic salary and other allowances 186,136 98,663 Staff provident fund 4,002,416 2,092,196 19.00 Rent, taxes, insurance, electricity etc. Office rent 2,451,470 2,980,823 Electricity and utility 944,732 930,948 Insurance premium for motor vehicle 113,420 - 20.00 Provision for income tax 3,509,621 3,911,771 Total income tax during the year Adjustment for deferred tax (income)/expense 2,174,582 810,554 Tax Expenses 522,631 17,003 21.00 Postage, stamp & telecommunication 2,697,213 827,557 Telephone Internet 71,201 46,678 Courier 85,800 91,800 22.00 Stationery, printing and advertisements 810 800 Printing and stationery 157,811 139,278 Publicity and advertisement 21,310 17,168 23.00 Directors' fees & meeting expenses 14,175 - Directors' fee for attending board meeting 35,485 17,168 46,000 57,500 46,000 57,500 Annual Report 2021 International Leasing  219

Amount in Taka December '21 December '20 24.00 Auditors' fees 46,000 46,000 Statutory audit fee 8,050 8,050 Other Audit fees 54,050 54,050 25.00 Depreciation, amortization and repair of assets a) Depreciation - (Annexure-A) 516,155 492,296 Office Decoration 4,691 1 Furniture & Fixtures Computer & accessories 37,633 28,906 558,479 521,203 b) Repairs Vehicles 135,344 - Computer, office equipments etc. 3,000 1,000 1,000 Total (a+b) 138,344 522,203 696,823 26.00 Other expenses 99,436 - Fuel expenses 101,574 5,413 Office maintenance 873,707 528,822 Fees and subscription 223,968 193,678 Bank charges 2,353 Entertainment 46,349 20,920 Traveling and conveyance expenses 35,770 24,543 CDBL charges 775,728 7,950 1,388,754 27.00 Provision for margin loan and commission 5,804 3,657 Provision for/ (release of provision for) margin loan 5,804 3,657 28.00 Provision for unrealized loss on own portfolio investment (5,395,176) Unrealized Gain/(Loss) on investment (31.12.2021 / 31.12.2020) (24,302,634) (21,827,294) Unrealized Gain/(Loss) on investment (31.12.2020 /31.12.2019) (5,395,176) 16,432,118 Provision (Increased) /Released (18,907,458) 29.00 Earnings Per Share (EPS) 28,543,817 (7,528,382) Basic earnings per share 2,500,000 2,500,000 Earning attributable to ordinary shareholders (profit after tax) 11.42 (3.01) Number of ordinary shares outstanding during the year Earnings per share 30.00 Events after statement of financial position date: There is no significant event after the statement of financial position date. 220Annual Report 2021  International Leasing

IL Capital Limited Annexure-A Schedule of fixed assets As at December 31, 2021 COST DEPRECIATION Particulars As at January Addition Adjustment As at December Rate As at January Charged Adjustment As at December Written down 01, 2021 during the during the 31, 2021 (%) 01, 2021 during the during the 31, 2021 value as at Year Year Year Year December 31, 2021 Office Decoration 19,148,469 159,061 - 19,307,530 15% 17,835,677 516,155 - 18,351,832 955,698 Furniture & Fixtures 815,021 31,277 Computer & accessories 28,039 - 846,298 15% 815,021 4,691 - 819,712 26,586 Total as at Dec 31, 2021 4,595,186 24,558,676 218,377 - 4,623,225 33% 4,565,942 37,633 - 4,603,575 19,650 - 24,777,053 23,216,641 558,479 - 23,775,120 1,001,933 Annual Report 2021 International Leasing  221 Total as at Dec 31, 2020 25,033,055 - - 25,033,055 - 23,169,817 521,203 - 23,691,020 1,342,035

IL Capital Limited Annexure-B Schedule of Investment in Shares (Own Portfolio) As at December 31, 2021 Instrument Name Total Quantity Average Cost Total Cost Market Price Market Value Unrealized Gain/(Loss) ACMELAB 87,000 94 8,137,353.60 86.50 7,525,500.00 (611,853.60) ACTIVEFINE 10,000 29 288,977.00 25.60 256,000.00 (32,977.00) AGRANINS 40,000 64 60.00 (162,616.00) BATASHOE 913 2,562,616.00 966.90 2,400,000.00 BATBC 1,800 627 1,643,265.00 635.60 1,740,420.00 97,155.00 BBSCABLES 19,350 60 12,133,963.17 55.90 12,298,860.00 164,896.83 BDTHAI 26 19.50 (31,457.36) BEXIMCO 8,000 166 478,657.36 148.40 447,200.00 (520,144.00) BSC 80,000 49 2,080,144.00 71.90 1,560,000.00 (608,583.50) BXPHARMA 35,000 214 5,802,583.50 192.70 5,194,000.00 45,053.00 CONFIDCEM 151 121.90 (3,221,445.60) DHAKABANK 2,000 15 98,747.00 14.00 143,800.00 (1,831,043.74) DOREENPWR 153,000 78 32,704,545.60 67.80 29,483,100.00 (4,649.00) DUTCHBANGL 85 78.10 (218,747.20) EPGL 62,600 55 9,461,983.74 39.60 7,630,940.00 (363,104.50) FEDERALINS 5,000 38 74,649.00 35.80 70,000.00 (1,508,470.00) GOLDENSON 22 19.10 (34,641.00) HEIDELBCEM 22,400 1,737,467.20 272.40 1,518,720.00 (12,215.00) ICB 55,000 133 4,658,604.50 123.90 4,295,500.00 (706,156.25) IPDC 100,000 44 5,468,470.00 38.60 3,960,000.00 (619,956.79) KARNAPHULI 15,000 43 42.50 (230,344.00) KEYACOSMET 5,000 10 571,641.00 537,000.00 KFL 15,540 10 107,715.00 6.90 95,500.00 (7,864.00) LANKABAFIN 67,047 41 4,939,252.25 10.00 4,233,096.00 (161,010.00) LHBL 40,000 85 8,927,080.09 37.30 8,307,123.30 LINDEBD 10,000 1,531 1,774,344.00 71.10 1,544,000.00 - MASTERAGRO 50,000 10 432,864.00 1,579.80 425,000.00 (530,698.00) MERCANBANK 86,526 21 506,010.00 345,000.00 (1,049,061.10) MIRAKHTER 140,000 95 865,260.00 9.60 865,260.00 MJLBD 73,000 100 5,752,698.00 17.10 5,222,000.00 154,902.40 NIALCO 10 6,239,361.10 62.00 5,190,300.00 (10,659.60) OIMEX 3,200 26 4,900,457.60 88.30 5,055,360.00 (3,403,427.54) ORIONPHARM 26,649 105 266,490.00 23.60 255,830.40 (1,284,289.50) ORYZAAGRO 800,000 10 17,083,427.54 17.30 13,680,000.00 (494,425.12) PHOENIXFIN 39,000 31 3,702,289.50 91.10 2,418,000.00 548,052.80 POWERGRID 43,988 65 4,378,565.52 10.40 3,884,140.40 (215,987.50) PRAGATILIF 40,298 108 402,980.00 24.80 951,032.80 (644,130.30) PTL 25,000 97 648,487.50 59.60 432,500.00 PURABIGEN 47,000 48 4,925,830.30 89.10 4,281,700.00 10,897.60 RAKCERAMIC 27,244 47 272,440.00 94.10 283,337.60 (496,952.00) RENATA 80,000 1,193 2,480,952.00 41.30 1,984,000.00 (127,230.00) REPUBLIC 25,000 63 1,617,230.00 44.40 1,490,000.00 (1,256,092.20) RINGSHINE 66,000 14 7,136,692.20 1,312.00 5,880,600.00 (63,884.00) SAIFPOWER 20,000 44 1,945,884.00 53.00 1,882,000.00 (228,694.40) SINGERBD 32,000 198 1,550,294.40 1,321,600.00 (268,697.50) SOUTHEASTB 115,000 17 5,374,697.50 9.60 5,106,000.00 SPCL 126 2,901,387.56 38.30 3,189,472.00 288,084.44 SQURPHARMA 2,431 229 1,989,469.46 169.90 1,664,200.00 (325,269.46) STANDBANKL 31,400 10 144,288.00 15.50 96,000.00 (48,288.00) VFSTDL 10,000 28 875,748.00 85.90 766,000.00 (109,748.00) WALTONHIL 20,000 1,299 4,351,485.60 214.30 3,737,800.00 (613,685.60) WMSHIPYARD 22,000 17 1,703,400.00 10.70 1,550,000.00 (153,400.00) 100,000 2,515,120.00 20.30 1,786,720.00 (728,400.00) 20,800 18,560,874.60 1,148.80 17,358,300.00 (1,202,574.60) 81,000 208,416.00 10.70 214,000.00 20,000 1,377,750.00 1,015,000.00 5,584.00 50,000 1,700,386.03 1,503,779.20 (362,750.00) 2,520,030.00 1,605,000.00 (196,606.83) 1,309 212,983,325 188,680,692 (915,030.00) 150,000 (24,302,634) 222 Annual Report 2021  International Leasing

Letter of Transmittal All Shareholders, Bangladesh Bank, Registrar of Joint Stock Companies and Firms, Bangladesh Securities and Exchange Commission, Dhaka Stock Exchange Limited, and Chittagong Stock Exchange Limited. Dear Sir(s): ANNUAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2020. We are pleased to enclose a copy of the Annual Report together with the Audited Financial Statements including Consolidated and Separate Balance Sheet as at December 31, 2020 and Income Statements, Cash Flow Statements and Changes in Equity Statements for the year ended December 31, 2020 along with notes thereon of International Leasing And Financial Services Limited and its subsidiaries (International Leasing Securities Limited and IL Capital Limited) for your kind perusal and record. Thank you, Yours sincerely, Md. Asaduzzaman Company Secretary (CC) Annual Report 2021 International Leasing  223

\"NOTICE OF THE 25th ANNUAL GENERAL MEETING OF INTERNATIONAL LEASING AND FINANCIAL SERVICES LIMITED (ILFSL)\" Dear Shareholders, Greeting from ILFSL Please be informed that the 25th Annual General Meeting (AGM) of International Leasing and Financial Services Limited will be held on Thursday, December 30, 2021 at 11.00 a.m. at digital platform (Meeting Link- http://ilfsl.digitalagmbd.net ) to transact these following businesses: A 2021-25-01 : To receive and adopt the Directors’ Report, Auditors' Report and Audited Financial of A 2021-25-02 Statements for the year ended December 31, 2020. A 2021-25-03 : To declare dividend for the year ended 31st December 2020 as recommended by the A 2021-25-04 Board of Directors. A 2021-25-05 : To elect Directors in place of those who shall retire by rotation under the provision A 2021-25-06 Articles of Associations of the Comply. : To appoint Auditors for the term until the next Annual General Meeting and x their remuneration. : To appoint Compliance Auditors as per Corporate Governance Code. : To transact any other business with the permission of the Chairman. “All Shareholders of the Company are requested to kindly attend the Meeting accordingly” Notes: i) The record date is xed on December 08, 2021. The Shareholders, whose names will appear in the Share Register of the Company at the close of the business on the record date will be eligible to attend the meeting and get Dividend. ii) The Board of Directors has recommended no Dividend. iii) Members entitled to attend and vote at the Annual General Meeting may appoint Proxy to attend and Vote on their stead. The Proxy Form must be a xed with requisite revenue stamp and must be submit- ted to the Registered O ce/Corporate O ce of the Company or emailed to [email protected] not less than 48 hours before the time xed for the Annual General Meeting. iv) Pursuant to Noti cation No. BSEC/CMRRCD/2006-158/208/Admin81 dated June 20, 2018 of the Bangladesh Securities and Exchange Commission (BSEC); soft copy of the Annual Report 2020 shall be sent to the shareholders respective email addresses as is available in the Bene ciary Owner (BO) Account on the record date. Soft copy of the Annual Report 2020 will be also available at the Compa- ny’s website at www.ilfsl.com v) Members entitled to attend and vote at the Annual General Meeting will be able to submit their ques- tion(s)/comment(s) and cast their votes electronically through the web link http://ilfsl.digita- lagmbd.net starting from 24 hours before commencement of the AGM and during the AGM. For logging into the virtual AGM the members need to put their 16 digit Bene ciary Owner (BO) Account number and other credentials as proof of their identity. The link also sent/be sent to the email address- es of the respective shareholders. vi) No bene t or gift in cash or kind shall be given to the shareholders for attending the 25th Annual General Meeting as per Bangladesh Securities and Exchange Commission’s Circular No. SEC/CMRRC- D/2009-193/154 dated October 24, 2013. Regards, Md. Asaduzzaman Company Secretary (CC) 224 Annual Report 2021  International Leasing

A Financial Institution that Cares PROXY FORM I/We ....................................................................................................................................................................................................... of............................................................................................................................................................................................................. being a Member of International Leasing And Financial Services Limited, hereby appoint Mr./Ms .....................................................................................................of........................................................................................ as my proxy in my absence to attend and vote for me and on my behalf at the 25th Annual General Meeting of the Company to be held on December 30, 2021 at 11:00 am on Digital Platform and at any adjournment thereof. As witness my hand this of .........................................................................................................Day of December 2021 Signature of Proxy of ..................................................................................................................................................................... Signature of Member .................................................................................................................................................................... Register folio no./BO ID of Member Tk. 20/- Revenue Stamp ATTENDANCE SLIP Mr./Ms............................................................................................................................................ Register folio no./BO ID of Member I hereby record my presence at the 25th Annual General Meeting of the Company to be held on Decem- ber 30, 2021 at 11:00 am on Digital Platform. Signature N.B. The Member attending the meeting is kindly requested to mention the registered name and folio no./BO ID on this slip and present the same at the registration counter on the day of the meeting. Annual Report 2021 International Leasing  225

SHAREHOLDERS' NOTE : 226 Annual Report 2021  International Leasing



A Financial Institution that Cares DR Tower (13th Floor), 65/2/2, Bir Protik Gazi Golam Dostogir Road Purana Paltan, Dhaka-1000, Bangladesh. Tel: + 880-2-223381228, 223353485, Fax: +880-2-223381227, www.ilfsl.com YOUR MONEY MANAGER Hossain Tower (1st Floor), 116, Bir Protik Gazi Golam Dostogir Road (Culvert Road) Naya Paltan, Dhaka-1000, Bangladesh. Tel: + 88-02-9344093, Fax: +880-2-9343841, www.ilfslbd.com YOUR INVESTMENT MANAGER Hossain Tower (2nd Floor), 116, Bir Protik Gazi Golam Dostogir Road (Culvert Road) Naya Paltan, Dhaka-1000, Bangladesh. Tel: + 88-02-58315389, Fax : 02-58315387, www.il-capital.com