2017

Annual Report

GSP FINANCE COMPANY (BANGLADESH) LIMITED

 2017
Annual Report

GSP FINANCE COMPANY (BANGLADESH) LIMITED

Contents

Letter of Transmittal.............................................................................................................................................. 04

Notice of the 23rd Annual General Meeting.......................................................................................................... 05

Vision, Mission, Strategic Objectives and Core values......................................................................................... 06

The Company at a Glance...................................................................................................................................... 07

Products and Services............................................................................................................................................ 07

Corporate Information............................................................................................................................................ 08

Board of Directors ................................................................................................................................................. 09

Brief profile of the Directors................................................................................................................................. 10

Committees of the Board & Management........................................................................................................... 14

Capital and Shareholding Structure...................................................................................................................... 15

Message from the Chairman................................................................................................................................. 16

Message from the Managing Director & CEO....................................................................................................... 18

Directors' Report.................................................................................................................................................... 20

Report of the Audit Committee.............................................................................................................................. 27

Certificate on Compliance of Corporate Governance Guidelines.......................................................................... 28

Compliance Report on BSEC's Notification........................................................................................................... 29

Compliance Report on the Good Governance........................................................................................................ 41

Financial Highlights............................................................................................................................................... 44

Auditors' Report to the Shareholders.................................................................................................................... 47

Financial Statements............................................................................................................................................. 49

Notes to the Financial Statements........................................................................................................................ 62

Proxy Form and Attendance slip............................................................................................................................ 99

Annual Report 2017 03

Letter of Transmittal

All Shareholders
Bangladesh Bank
Bangladesh Securities and Exchange Commission
Registrar of Joint Stock Companies & Firms
Dhaka Stock Exchange Limited
Chittagong Stock Exchange Limited

Subject: Annual Report for the year ended December 31, 2017

Dear Sir (s):

On behalf of the Board of Directors of GSP Finance Company (Bangladesh) Limited, the undersigned is pleased
to present a copy of the Annual Report for the year ended December 31, 2017 together with the audited
Financial Statements including consolidated and separate Balance Sheet, Income Statement, Cash Flow
Statement, Statement of Changes in Equity for the year ended December 31, 2017 and along with notes
thereon for your kind perusal and record.

Thanking you,

Sincerely yours,

Md. Mizanur Rahman

Deputy Managing Director
&
Company Secretary

Date: February 01, 2018

04 Annual Report 2017

Notice of the 23rd Annual General Meeting

Notice is hereby given that the 23rd Annual General Meeting of the shareholders of GSP Finance Company (Bangladesh) Limited
will be held on Wednesday, March 14, 2018 at 11.30 a.m. at the Institution of Diploma Engineers, Bangladesh, IDEB Bhaban, 160/A,
Kakrail, Dhaka-1000 to transact the following business:

01. To receive and adopt the Directors’ Report to the Shareholders, Auditors’ Report and Audited Financial Statements for the
year ended December 31, 2017.
02. To declare Dividend for the year ended December 31, 2017.
03. To elect Directors in place of those who shall retire by rotation in accordance with the provision of Articles of Association
of the Company.
04. To appoint Auditors of the Company for the year 2018 until the conclusion of the next Annual General Meeting and to fix
their remuneration.

By order of the Board

Md. Mizanur Rahman

Deputy Managing Director
&
Company Secretary

Dated: February 01, 2018

Notes:

01. The Record Date is February 25, 2018.

02. The Shareholders whose name will appear in the Share Register of the Company and in the Depository Register on the
date will be eligible to attend the 23rd Annual General Meeting and qualify for the dividend to be declared at the AGM.
03. A shareholder eligible to attend and vote at the Annual General Meeting (AGM) may appoint a proxy to attend and vote in
his/her place by filling proxy Form. The proxy Form must be affixed with a revenue stamp of Tk.20/- and submitted to the
Registered Office of the Company not later than 48 hours before the day of the Annual General Meeting.
04. Members are requested to update their respective BO Accounts with 12 digit Electronic Tax Identification Number (E-TIN),
Bank Account, mailing address and contact number through their respective Depository Participant (DP) before the Record
Date.
05. Shareholders’ attendance counter will open at 7.00 a.m. and to be continued till 11.30 a.m.

N.B: Members may please note that no gift or benefits in cash or kind shall be given at the AGM.

Annual Report 2017 05

VISION
To be a premier financial institution in Bangladesh with strong commitment to the development of the society and the
national economy.

MISSION
High quality financial services with state of the art technology.
Working closely with our clients.
Maximizing return on equity.
Maintaining a high standard of professional ethics.
Securing a sustainable growth strategy.

STRATEGIC OBJECTIVES
Create high quality investment portfolio.
Strengthening our position in capital market operation.
Continuous diversification for maximization of shareholders’ value.
Maintain long-term business relationship with our clients.
Retaining most dynamic people with good aptitude.
Responding quickly to new opportunities.
Balanced diversification of funding sources.
Strengthening corporate governance practices.

CORE VALUES
Integrity
Commitment
Transparency
Service Excellence
Business Ethics
Teamwork
Prudent risk taking
Clients Focus
Friendly Environment
Equal opportunity
Trust & Respect

06 Annual Report 2017

THE COMPANY AT A GLANCE
GSP Finance Company (Bangladesh) Limited is a Financial Institution (FI) incorporated in Bangladesh on October 29,1995
as a public limited company under the Companies Act 1994. The Company received its certificate of commencement of
business on January 14, 1996 and its license on March 04, 1996 as required under Section 4(1) of the Financial
Institutions Act 1993. The Company went into commercial operation on April 17, 1996. The Company also got a separate
license from Bangladesh Securities and Exchange Commission on August 24, 1999 for working as a Merchant Bank. GSP
Finance Company (Bangladesh) Limited was listed with Chittagong and Dhaka Stock Exchanges on March 14, 2012 and
March 28, 2012 respectively.

GSP INVESTMENTS LIMITED

(A Subsidiary of GSP Finance Company (Bangladesh) Limited)

Pursuant to the requirement of Bangladesh Securities and Exchange Commission, GSP Finance Company (Bangladesh)
Limited formed a subsidiary in the name of “ GSP Investments Limited “ with a view to separate its Merchant Banking
operation which was approved by Bangladesh Securities and Exchange Commission vide their letter no. SEC/
Reg./MB/SUB-16/2011/113 dated August 14, 2014. GSP Investments Limited duly incorporated with the RJSC, Dhaka as
a private limited company with an authorized and paid up capital of Tk. 500 million and Tk. 250 million respectively.

PRODUCTS AND SERVICES

Financial segments
Lease Finance
Term Finance
Working Capital Finance
Bridge/ equity finance
Syndication finance
SME finance

Deposit schemes
Monthly income deposit
Quarterly income deposit
Half yearly income deposit
Yearly income deposit
Double income deposit

GSP Investments Limited

(A Subsidiary of GSP Finance Company (Bangladesh) Limited)

Issue Management
Underwriting
Portfolio Management
Margin Loan
Advisory Services on securities
Securities Trading Services

Annual Report 2017 07

CORPORATE INFORMATION
Registered Name of the Company
GSP Finance Company (Bangladesh) Limited
Legal Form
A public limited company incorporated in Bangladesh on October 29, 1995 under the Companies Act 1994. The Company
licensed as Financial Institution under Financial Institutions Act 1993 on March 04, 1996 and also got a separate license
from Bangladesh Securities and Exchange Commission on August 24, 1999 for working as a Merchant Bank. The Company
was listed with Dhaka and Chittagong Stock Exchanges in 2012.

Company Registration No. Membership

C-29591 (879) / 95 Bangladesh Leasing & Finance Companies Association (BLFCA)
Bangladesh Association of Publicly Listed Companies (BAPLC)
Bangladesh Bank License No. Bangladesh Merchant Bankers Association (BMBA)
AvtcÖt(A-e¨vswKs)wefvM/XvKv/10/96 Foreign Investors Chamber of Commerce & Industry (FICCI)
Bangladesh-Malaysia Chamber of Commerce and Industry (BMCCI)
GSP Investments Limited - License No.
(A Subsidiary of GSPB)
MB- 88/2014 Principal Bankers
Registered Office BASIC Bank Ltd.
Commercial Bank of Ceylon PLC
1, Paribagh, Mymensingh Road, Dutch- Bangla Bank Ltd.
Dhaka-1000, Bangladesh. Mutual Trust Bank Ltd.
Tel: +880-2-9674306, 9674425 (Auto Hunting) Shahjalal Islami Bank Ltd.
Fax: +880-2-9674194 Southeast Bank Ltd.
Website Standard Bank Ltd.
The City Bank Ltd.
www.gspfinance.com

Legal Advisor Stock Brokers

Chowdhurys & Hyders Multi Securities & Services Limited
Barristers, Advocates and Consultants Haji Ahmed Brothers & Securities Ltd.
Room No. 6/B, Meherba Plaza (6th floor)
33, Topkhana Road, Dhaka-1000. Chairman
Mr. Feroz U. Haider
Tax Adviser
Adil & Associates Managing Director & CEO
Advocates & Tax Consultants Abu Zafar Hedaytul Islam
50, Purana Paltan Line (2nd floor)
Dhaka-1000. Company Secretary
Mr. Md. Mizanur Rahman
Auditors
Malek Siddiqui Wali
Chartered Accountants
9-G, Mitijheel C/A, 2nd Floor,
Dhaka - 1000, Bangladesh

08 Annual Report 2017

BOARD OF DIRECTORS

Mr. Feroz U. Haider

Chairman of the Board

Mr. Saber Hossain Chowdhury

Vice Chairman of the Board
Nominated by Karnaphuli Industries Limited

Dr. ATM Shamsul Huda

Independent Director of the Board &
Vice Chairman of the Board

Mr. Moin U. Haider

Director of the Board &
Chairman, Executive Committee

Col. M. Nurul Islam Psc. (Retd.)

Independent Director of the Board &
Chairman, Audit Committee

Mr. Wajid Ali Khan Panni

Independent Director of the Board

Mr. Wolf-Peter Berthold

Director of the Board

Mr. Mohamed Abdul Jalil

Director of the Board
Nominated by Tai Ping Asian Investment Limited

Ms. Silwat A. Haider

Director of the Board

Abu Zafar Hedaytul Islam

Managing Director & CEO

Annual Report 2017 09

BRIEF PROFILE OF THE DIRECTORS
Mr. Feroz U. Haider
Chairman of the Board
Mr. Feroz U. Haider is a renowned international banker with experience in very senior positions
in financial institutions in South East Asia. He started his banking career in 1967 with United
Bank Limited. From 1976 to 1978 he was the General Manager of Gulf Finance Company Limited,
Hong Kong. In 1979 and 1980 he was the Manager, Operations Bangladesh of American Express
Bank Limited. From 1981, he was the Managing Director of GSP Finance Company Limited, Hong
Kong and GSP International Limited, Vanuatu. From 1989 to 1996 he was the Chairman of GSP
International Limited, Vanuatu and President of Thai Prasit Insurance Company Limited, Hong
Kong (now Mittare Insurance Co. Ltd.). From the date of incorporation (October 29, 1995) of GSP
Finance Company (Bangladesh) Limited, he served as Chairman and Managing Director of the
Company and at present he is serving as Chairman.

Mr. Saber Hossain Chowdhury

Vice Chairman of the Board
Nominated by Karnaphuli Industries Limited
Mr. Saber Hossain Chowdhury is a Director & Vice Chairman of GSP Finance Company
(Bangladesh) limited representing Karnaphuli Industries Limited. He was elected as Member of 7th
Jatio Sangsad (National Assembly) and again he elected as Member of 9th Jatio Sangsad. He
served as Deputy Minister of Shipping from December 1996 to March 1998 and thereafter as
Deputy Minister of Local Government & Rural Development (LGRD) till July 2001. He was also a
Member of the Parliamentary Committee for the Ministry of Sports and Cultural Affairs for the
term of 1996-2001. During his tenure as the Member of the Parliament and also as the Deputy
Minister, he was widely acclaimed as having acted with honesty and integrity, thereby holding
high image of his constitutional positions. He is also the Managing Director of Karnaphuli Group of
Companies. Mr. Chowdhury holds Bachelor degree of Political Science and Economics from London
University and LL.B in Westminister University, London. Mr. Saber Hossain Chowdhury has been
elected as Vice Chairman of the Board of GSP Finance Company (Bangladesh) Limited in 2016. He
was the 28th President of Inter-Parliamentary Union (IPU) having been elected to the position on
16th October 2014 for a term of 3 years. He was the first Bangladeshi to have been elected to this
highest office of global parliamentary leadership. At present Mr. Saber Hossain Chowdhury is the
Honorary President of Inter-Parliamentary Union (IPU).

Dr. ATM Shamsul Huda

Independent Director of the Board &
Vice Chairman of the Board
Dr. ATM Shamsul Huda was born in 1943. He obtained his B.A (Honors) and M.A in History from the
University of Dhaka and he stood 1st class 1st position in both the examination. He also earned Masters
in Public Administration and PhD from Syracuse University, New York, USA in 1975 and 1979
respectively. He started his career as a teacher of the University of Dhaka in the department of History
and later joined the Civil Service of Pakistan (CSP) in 1966.Prior to Independence of Bangladesh he
worked extensively at field levels in both East and West Pakistan.
During his 34 years of long service with the Government, has held such positions as Member, Public
Administration Training center; Chairman, Bangladesh Water Development Board; Managing Director,
Bangladesh Agricultural Development Bank; Secretary, Banking Division, Ministry of Finance and
Secretary, Ministry of Water Resources. He retired from Government service in 2000.
He was appointed as Chief Election Commissioner on February 05, 2007 for tenure of 5 years. He retired
as CEC on 5th of February, 2012. Mr. ATM. Shamsul Huda has been elected as Vice Chairman of the
Board of GSP Finance Company (Bangladesh) Limited in 2016.

10 Annual Report 2017

 Mr. Moin U. Haider
Director of the Board &
Chairman, Executive Committee

Mr. Moin U. Haider has been a shareholder of the Company since 2000 and became a Director
in 2005. He is a graduate in Business-Economics from Lewis & Clark College, Portland, Oregon,
USA in 2003 and has an Associate of Occupational Studies Degree in Automotive Technology
from Universal Technical Institute, Phoenix, Arizona, USA in 2004. Mr. Haider has also obtained
the Canadian Securities Certification from Canadian Securities Institute, Toronto, Canada in
2012. Mr. Moin U. Haider has been elected as Chairman of the Executive Committee of the
Board of GSP Finance Company (Bangladesh) Limited in 2016.

Col. M. Nurul Islam Psc. (Retd.)

Independent Director of the Board &
Chairman, Audit Committee
Col. M. Nurul Islam Psc. (Retd.) joined GSP Finance Company (Bangladesh) Limited in February
2000 as an Executive Director and he is appointed as an Independent Director of the Company.
Prior to joining GSP Finance Company (Bangladesh) Limited, he ran his own business in export,
import and trading. He started his Army career as a commissioned officer in 1969 in the
Pakistan Army and retired as a Colonel in 1996. Col. Islam has received extensive training in the
armed forces, including attending different military courses in Australia (1978), USA (1988) and
China (1989). Col. Islam graduated from the Staff College in 1982.

Mr. Wajid Ali Khan Panni

Independent Director of the Board

Mr. Wajid Ali Khan Panni has recently been appointed as an Independent Director of GSP
Finance Company (Bangladesh) Limited. Mr. Panni was born in 1944. He studied in Darjeeling,
India, then Aitchison College and F.C College in Lahore. Mr. Panni was a founder Trustee of
Education, Science, Technology and Cultural Development Trust (ESTD) and a member of the
Governing Council of Independent University Bangladesh (IUB). He was the first Vice president
(Finance and Administration) Mutwali, Wajid Ali Khan Panni Waqf Estate, Karatia, Tangail. He
was elected to parliament as an Independent Candidate in 1986, Deputy Foreign Minister from
1986 to 1988. Chairman District Council, Tangail from 1988 to 1990. He was High Commissioner
of Bangladesh to Malaysia from March 1997 to December 1999. Mr. Panni is presently actively
involved in IUB and the the trust which he is a member and a Share holder/ Director of Shapla
Technologies Ltd.

Annual Report 2017 11

 Mr. Wolf-Peter Berthold
Director of the Board

Mr. Berthold, a native German, has been living in Hong Kong since 1977. He established an
investment firm, Deutsche Asiatische Beteiligungsgesellschaft (DBA) Ltd. in 1996. As Chairman
/CEO of DBA Ltd. He oversees the firm’s investment activities, including but not limited to
Private Equity investments. Prior to establishing his own business, he worked for several major
German Banks in Hong Kong as the head of private banking and portfolio management (AUM
exceeding 1 bn USD) with regional responsibility. He is the Chairman of Sino Investment
Management Services Ltd. (SIMS) and CEO/ Chairman of Helicon Enterprises Co. Ltd, a property
investment company. Mr. Berthold serves as an independent director /advisor on various boards
and investment committees. He is an honorary member of the Hong Kong Association of
Financial Advisors (FHKFA) and a licensed representative (RA6) of the HK SFC. Mr. Berthold
holds a degree in business administration and economics (Diploma Kaufmann) from the
University of Mannheim, Germany.

Mr. Mohamed Abdul Jalil

Director of the Board
Nominated by Tai Ping Asian Investment Limited
Mr. Mohamed Abdul Jalil is a Director of GSP Finance Company (Bangladesh) Limited representing
Tai Ping Asian Investment Limited. Mr. Jalil was a senior civil servant in the Government Sector.
He was a Member (Taxes) Ex-officio Additional Secretary, NBR. He was involved in preparation of
National Budget and Budgetary Policy and Taxation Policy. He also served as Director Finance of
Petrobangla and Member Finance of BTTB. He also represented Government of Bangladesh as
Director in the Board of Directors of Jamuna Oil Company Limited and National Tubes Ltd. He was
General Secretary of Officers Club, Dhaka for four years and hold other positions of Officers Club
for twenty five years. Meanwhile, he involved himself in various social activities. Mr. Jalil got Gold
Medal for Education and Social Welfare from Bangladesh Jatiyo Shahyto Sangshad-1993 and got
another Gold Medal for Education and Social Welfare, Sher-e-Bangla Jatiyo Shishu Academy
1997. Mr. Jalil holds B.A (Hons) and M.A in (Economics) and LL.B from the University of Dhaka. He
was a Director of Telephone Shilpa Sangstha and Bangladesh Cable Factory. Presently, he is
Chairman of Bangladesh Unnayan Parishad, a research organization.

Ms. Silwat A. Haider

Director of the Board

Ms. Silwat A. Haider Director of GSP Finance Company (Bangladesh) Limited served as a
Management Consultant with AEA Consulting London, UK from 2001 to 2003. Between 2003 to
2005 she served with Arts Council England, London, UK as a Capital Projects Officer. Ms. Haider
also served as Grants Manager for Capital Projects with Big Lottery Fund London, UK; European
Social Fund (ESF) Programme Coordinator with Learning and Skills Council (LSC) London, UK and
Project Manager with Mouchel, Management Consultancy, London, UK. At present she is
working as a Project Director of Natural History Museum, London, UK. During her long tenure,
she has worked in various areas of Arts, Culture & Economics. Ms. Haider holds a B. Sc. (Econ)
International History (Hons) from London School of Economics & Political science, University of
London and a M. A. in Art History and Archeology from the School of Oriental and African
Studies, University of London. She is also a qualified PRINCE 2 Practitioner and MSP
Practitioner.

12 Annual Report 2017

Abu Zafar Hedaytul Islam
Managing Director & CEO

Mr. Abu Zafar Hedaytul Islam is the Managing Director & CEO of GSP Finance Company
(Bangladesh) Limited. Prior to this assignment Mr. Islam was the Deputy Managing Director of
Trust Bank Limited.

A post graduate in Economics from the University of Dhaka, started his Banking career in 1986
as a probationary officer with IFIC Bank Limited. During 31 years career he also served in Eastern
Bank Limited. He attended a number of workshop & seminars at home and abroad. He is a
widely travelled man and he visited countries like USA, Canada, Australia, Germany, Italy, UK,
Holland, Austria, Malaysia, Singapore, UAE, Bahrain and India etc.

Annual Report 2017 13

COMMITTEES OF THE BOARD & MANAGEMENT

Executive Committee
Chairman Credit Committee
Mr. Moin U. Haider Chairman
Abu Zafar Hedaytul Islam
Members
Mr. Feroz U. Haider Members
Mr. Saber Hossain Chowdhury Mr. Helal Uddin
Col. M. Nurul Islam Psc. (Retd.) Mr. Mizanur Rahman
Mr. Mohamed Abdul Jalil Mr. Zillur Rahim Chowdhury
Mr. Syed Sharif Zamal
Audit Committee Mr. Wahidul Islam
Chairman
Col. M. Nurul Islam Psc. (Retd.) BASEL Implementation Committee
Members Chairman
Mr. Saber Hossain Chowdhury Abu Zafar Hedaytul Islam
Dr. ATM Shamsul Huda
Mr. Mohamed Abdul Jalil
Members
Mr. Helal Uddin
Mr. Moin U. Haider
Mr. Mizanur Rahman
Management Committee (MANCOM) Mr. Syed Sharif Zamal
Mr. Wahidul Islam
Chairman
Abu Zafar Hedaytul Islam Risk Management Forum
Members Chairman
Mr. Helal Uddin Abu Zafar Hedaytul Islam
Mr. Mizanur Rahman Members
Mr. Zillur Rahim Chowdhury Mr. Helal Uddin
Mr. Syed Sharif Zamal Mr. Mizanur Rahman
Mr. Shazzad Hossain Mr. Syed Sharif Zamal
Asset-Liability Management Committee (ALCO) Mr. Wahidul Islam
Mr. Habibur Rahman
Chairman
Abu Zafar Hedaytul Islam Integrity Committee
Members Chairman
Mr. Helal Uddin Abu Zafar Hedaytul Islam
Mr. Mizanur Rahman
Mr. Zillur Rahim Chowdhury
Members
Mr. Helal Uddin
Mr. Syed Sharif Zamal
Mr. Mizanur Rahman
Mr. Shazzad Hossain
Mr. Zillur Rahim Chowdhury
Mr. Wahidul Islam
Mr. A.K.M. Mojibul Haque
Anti Money Laundering Compliance Committee Mr. Ramzan Hossain

Chairman
Abu Zafar Hedaytul Islam
Members
Mr. Mizanur Rahman
Mr. Syed Sharif Zamal
Mr. Shazzad Hossain
Mr. Wahidul Islam
Mr. Saiful Islam

14 Annual Report 2017

CAPITAL AND SHAREHOLDING STRUCTURE

Amount in Taka
Share Capital 2017 2016
Authorized share capital
200,000,000 ordinary shares of Tk. 10 each 2,000,000,000 2,000,000,000
Issued, Subscribed and Paid up Capital
104,632,695 ordinary shares of Tk. 10 each 1,046,326,950 1,046,326,950

Sponsors/Directors: % of share Amount in Taka

holding 2017 2017 2016
A. Foreign

Institutions:
Tai Ping Asian Investment Limited 10.42% 108,979,210 108,979,210

Individuals:
Mr. Wolf - Peter Berthold 3.59% 37,521,670 37,521,670
Sub Total 14.01% 146,500,880 146,500,880

B. Domestic
Institutions:
Karnaphuli Industries Limited 9.07% 94,913,860 94,913,860

Individuals:
Mr. Feroz U. Haider 8.07% 84,406,110 84,406,110
Mr. Moin U. Haider 2.00% 20,926,550 20,926,550
Ms. Silwat A. Haider 2.00% 20,926,580 20,926,580
AVM (Retd.) Altaf Hossain Choudhury Ndu. Psc 0.36% 3,786,010 3,786,010
Col. M. Nurul Islam Psc. (Retd.) 0.07% 787,720 1 ,787,720

Sub Total 21.57% 225,746,830 226,746,830

C. General Shareholders 64.42% 674,079,240 673,079,240
Total (A+B+C) 100.00% 1,046,326,950 1,046,326,950

Annual Report 2017 15

Bismillahir Rahmanir Rahim
Distinguished Shareholders:

Assalamu Alaikum,

It gives me immense pleasure to welcome you all at the 23rd Annual General Meeting of GSP Finance Company
(Bangladesh) Limited. On behalf of the Board of Directors, I would like to express my sincere thanks to the respected
shareholders for their support and co-operation towards the Company during the year and I also extend my thanks to the
honorable members of the Board of Directors for their presence, active support and co-operation for the growth of the
company.

GSP Finance Company (Bangladesh) Limited has a long successful history of professionalism & high standard of business
ethics which is based on a well developed culture of accountability, transparency, fairness and good governance. Our
company has been able to build resilience power to overcome any kind of stress emanating from external & internal
factors.

GSP Finance Company (Bangladesh) Limited maintains fair, transparent and sound management. It has well designed
management structure having professional experience and relevant training with clearly defined roles for different
departments and delegation of authority at different levels.

As low interest on deposits was offered by Banks & FI’s during the year, which resulted in shifting of deposits from
Banks & FIs to saving instruments of Government. Despite that there were liquidity surplus in the money marker and
country’s credit grew @ 18.1% against targeted growth of @ 16.2% during the 1st half of the Fiscal year 2018 i.e.
July-December period of 2017 and Bangladesh witnessed a 7.28 percent GDP growth in the year 2017.

The performance of the company during the year 2017 was satisfactory. In the year net profit after tax and provision
stood at Tk 297 million as compared to Tk 267 million of previous year. Deposits and Advances of the company stood at
Tk. 4,177.07 million & Tk. 8,070.56 million as at 31st December 2017 against Tk.3, 689.30 million & Tk.6,137.62 million

16 Annual Report 2017

as at 31st December 2016 respectively. I firmly believe that we shall be able to meet all the present & future challenges,
more courageously and manage the situation in a better way than even before.

We understand that the year 2018 will be a hard year for FIs. The key challenging factor will be to compete with Banks in
securing deposits and lending at comparative rates. As FI, depositors expect higher rate of interest on deposits but while
borrowing from FIs, customers demand parallel rate with Banks which is a difficult phenomenon for FIs to provide due to
high cost of fund of most of the FIs, Already higher interest rates on deposits are being offered by Banks & FIs and
interest rate is apprehended to go higher during the current year. Despite that we are to survive by rendering better &
quick services to our customers, both depositors & borrowers, and by harnessing new sources of fund and managing it in
a judicious manner.

GSP Finance Company (Bangladesh) Limited continuously reviews its human resource policies and implements effective
management policies and practices to enhance the productivity of the employees by promoting the sense of
belongingness. We believe that our human resources are our great assets in terms of their experience and professional
expertise. Considering this, we strive to recruit the best suited persons for the right positions, provide them with
adequate training and implement programs to develop and retain them. Congenial atmosphere in office is maintained
and staff welfare measures are taken adequately in order to augment corporate social responsibility.

I would like to express my sincere thanks to the Government of Bangladesh, Bangladesh Bank, Bangladesh Securities
and Exchange Commission, Dhaka Stock Exchange, Chittagong Stock Exchange, Registrar of Joint Stock Companies and
Firms, National Board of Revenue (NBR) and all other regulatory authorities for their continued guidelines, co-operation
and positive outlook towards running the company steadfastly.

I would once again like to express my deep appreciation to my colleagues in the Board and members of the staff for
their co-operation and commitment to render their level best for our stakeholders. I also extend my heartfelt thanks to
our shareholders for the trust reposed in the Board of Directors of GSP Finance Company (Bangladesh) Limited.

May the Almighty Allah bless us all.

Feroz U. Haider
Chairman

Annual Report 2017 17

I wish to express my profound gratefulness to all the members of the Board of Directors of GSP Finance Company
(Bangladesh) Limited who have extended their all out support and advices to enable me to render my services without any
let & hindrance which is a pre-condition for the growth of a company.

Finally, on behalf of the management of the Company, I also express my thanks and heartiest gratitude to all of our
honorable shareholders, directors, regulatory authorities including Bangladesh Bank, BSEC, NBR, DSE, CSE, RJSC, our
auditors, valued customers and members of staff of the company for their continued support, guidance,
advice/co-operation for steering the company during the year 2017.

With thanks and best regards,

Abu Zafar Hedaytul Islam

Managing Director & CEO

Annual Report 2017 19

Directors' Report
Bismillahir Rahmanir Rahim
Dear Shareholders,

Assalamu Alaikum,

On behalf of the Board of Directors of GSP Finance Company (Bangladesh) Limited, I am pleased to present the Annual
Report and the Audited Financial Statements of the Company for the year ended December 31, 2017 together with the
Auditors’ Report thereon for consideration and approval of our honorable shareholders. This report has been prepared in
compliance with the section 184 of the Companies Act 1994, BSEC’s Notification of 2012, the Listing Regulations of
Dhaka and Chittagong Stock Exchanges and the guidelines issued by Bangladesh Bank and other regulatory authorities.

Relevant disclosures and explanations relating to certain issues have been given by the Directors, which they consider
important to ensure transparency and good governance practices. We believe that it is comprehensive enough to
understand the operational procedures and overall performance of the company at a glance during the year under
reporting.

PRINCIPAL ACTIVITIES OF THE COMPANY

The Principal Activities of GSP Finance Company (Bangladesh) Limited are:

Lease Finance
Term Finance

Working Capital Finance

Syndication Finance
Bridge / Equity Finance

SME Finance

Deposit schemes

OPERATIONAL PERFORMANCE OF THE COMPANY

2017 was a year of challenge for the financial sector of the country as well as for GSP Finance Company (Bangladesh)
Limited. Excess liquidity, reduced demand for investment in the private sector and slow progress in recovery activities
posed great problem for us. Our Company met the challenges through focused marketing plan, diversified products and
services, taking steps towards adopting a fully automated and modern system, improving the assets quality by
strengthening the recovery of non-performing assets, emphasis on human resources development program to upgrade the
skill and knowledge of our personnel.

20 Annual Report 2017

 DIRECTORS' REPORT

FINANCING AND INVESTMENT OPERATION OF THE COMPANY

GSP Finance Company (Bangladesh) Limited pursues a conservative approach while making any investment decision. As a
reflection of its corporate vision, the company always prefers the segmented business proposition which includes
corporate and institutional clients and SME. Keeping this in mind, GSP Finance Company (Bangladesh) Limited is offering
tailored financial products for the growth of various sectors of the economy.

Lease Finance: Lease financing is one of the major fund based activities of GSP Finance Company (Bangladesh) Limited.
The Company offers fully payout financial lease for procuring capital machinery, equipment, vehicles & riverine transport.
GSP Finance Company (Bangladesh) Limited provides services to customers of different segments. Through a prudent
business model the company has diversified its business in other business segments in the year 2017. The investment
under lease finance registered a growth of 95.67% of the Company with exposure of Tk. 1,325.95 million at the end of
2017 as opposed to Tk. 677.46 million of the previous year.

Term Finance: Term finance continued to be a core product of GSP Finance Company (Bangladesh) Limited. Long-term
finance is available for commercial, industrial, SME sectors for a period ranging from 12 to 60 months depending on the
nature of business and need. To provide liquidity comfort to corporate houses in emergency situation, the short-term
finance is made under the different categories i.e. direct finance for working capital, work order finance, finance against
term deposits etc. As pointed out by the Bangladesh Bank, term finance by FIs are the alternate source of capital financing
for the industrial growth in the country. The Company’s investment under term finance registered a growth of 23.53% in
2017 which stood at TK. 6,744.97 million at the end of 2017 as against to Tk. 5,460.16 million of the previous year.

Fund Arrangement/Syndication: GSP Finance Company (Bangladesh) Limited actively participated as a co- financer in various
large syndication loans in order to diversify its portfolio and reduce risks. The total commitments of the company in
syndications and structured finance arrangements stood at Tk. 539.87 million as at December 31, 2017.

CAPITAL MARKET OPERATION OF THE COMPANY

GSP Finance Company (Bangladesh) Limited operates in the Capital market through its Subsidiary Company GSP
Investments Limited.

Investment in Share and Securities: GSP Finance Company (Bangladesh) Limited maintains its own portfolio for investment
in listed companies shares and securities. The risk of investment is minimized through diversification and investing mostly
in fundamentally strong securities. In 2017, the Company earned Tk 32.87 million in the form of capital gain and dividend.

Annual Report 2017 21

 DIRECTORS' REPORT

MONEY MARKET OPERATION OF THE COMPANY

We experienced a highly liquid market in 2017. Managing excess liquidity and balance sheet gap were the key challenges
for the whole financial sector. Due to excess liquidity in the market inter Bank loan transfers were on the rise throughout
the year. Early settlement of loan facilities by customers with access to cheaper funding from banks posed a serious
threat to impede our growth percentage, despite which we registered a modest growth in our business.

Banking Arrangement: In 2017 the Company obtained Tk 1,776.51 million from banks against different form of borrowings
to finance our operations and repaid Tk 866.70 million as per terms and conditions of contracts. During the year, the cost
of borrowing decreased significantly.

Deposit Mobilization: GSP Finance Company (Bangladesh) Limited mobilizes term deposits from corporate and individuals
though its wide range of deposit schemes with different maturity options, monthly/quarterly/half-yearly/yearly income
options, double money options, monthly saving options etc. The deposits base of the Company continued to register a
steady growth and stood at Tk. 4,177.07 million as on December 31, 2017

Money Market Operations: As a financial Institution GSP Finance Company (Bangladesh) Limited actively participates in the
money market on a regular basis and has been dealing with both borrowing and lending activities with different
banks/financial institutions to manage its treasury funding in a prudent way to augment its earnings. GSP Finance
Company (Bangladesh) Limited also maintains a very high standard commitment in money market operations and has built
up a strong reputation for itself in the money market.

RISK MANAGEMENT

Risk and uncertainties are essential elements of the financing business. To mitigate and manage these risks, GSP Finance
Company (Bangladesh) Limited has different committees namely, Credit Committee (CC), Asset and Liability Committee
(ALCO), Risk Management Committee, Management Committee and Audit Committee. The Committees regularly meet to
review the market, credit and liquidity risk related factors and recommend and implement suitable measures to counter
these risks. Appropriate and effective internal control systems are also in place to address operational risks. Credit Risk
Department of GSP Finance Company (Bangladesh) limited also assists the management in building a quality credit
portfolio. The Company has also taken steps to further strengthen its Internal Control and Compliance function.

22 Annual Report 2017

 DIRECTORS' REPORT

CORPORATE SOCIAL RESPONSIBILITY (CSR)

GSP Finance Company (Bangladesh) Limited has a commitment towards all stakeholders to engage in ethical practices. As
a leading financial institution, we recognize our responsibilities towards the society and participate actively in CSR
activities including promotion of staff welfare activities.

ENVIRONMENTAL ISSUES

GSP Finance Company (Bangladesh) Limited is very concerned in the matter of environmental issues and accordingly it
continuously reviews the environment related issues of our clients. It ensures that the clearance certificate from the
regulators have been obtained at the time of providing lease or loan facilities wherever necessary. We are equally
concerned about maintaining good environment in the office and for augmentation of this we have installed solar panel at
our premises as a source of alternate energy for providing power to our office.

HUMAN RESOURCES OF THE COMPANY

GSP Finance Company (Bangladesh) Limited continuously reviews its human resource policies and implements effective
management policies and practices to enrich its employees. We believe that our human resources possess competitive
advantage in terms of their experience and professional expertise. Considering this, we strive to recruit the best suited
persons for the right positions, provide them with adequate training and implement programs to develop and retain them.
GSP Finance Company (Bangladesh) Limited carefully looks into the motivational aspects, health and safety of its
employees. Capacity building activities are being encouraged and promoted by the Company all the year round.

CORPORATE AND FINANCIAL REPORTING FRAME WORK

The Directors in accordance with BSEC Notification No. SEC/CMRRCD/2006-158/134/Admin/44 dated August 07, 2012
confirms compliance with the financial reporting framework for the following:

• The financial statements prepared by the management of GSP Finance Company (Bangladesh) Limited present
fairly its state of affairs, the result of its operations, cash flows and changes in equity;
• Proper books of accounts of the Company have been maintained;
• Appropriate accounting polices have been consistently applied except for the changes disclosed in the financial
statements in preparation of the financial statements and accounting estimates are based on reasonable and
prudent judgment;
• International Accounting Standards (IAS)/ Bangladesh Accounting Standards (BAS)/ International Financial
Reporting Standards (IFRS) / Bangladesh Financial Reporting Standards (BFRS) as applicable in Bangladesh, have
been consistently applied in preparation of the financial statements and any change or deviation has been
adequately disclosed;
• The system of internal control is sound in design and has been effectively implemented and monitored;
• There is renewed confidence in the company to grow and continue as a going concern.

Annual Report 2017 23

 DIRECTORS' REPORT

THE PATTERN OF SHAREHOLDINGS

The Authorized Capital of GSP Finance Company (Bangladesh) Limited is Tk. 2,000,000,000 divided into 200,000,000
ordinary shares of Tk. 10 each. The present paid-up Capital of the Company is Tk. 104, 63, 26,950 divided into 104,632,695
ordinary shares of Tk. 10 each. The shareholding pattern of the Company as at December 31, 2017 is shown on page 15 in
this Annual Report as per clause 1.5 (xxi) of the BSEC Notification No. SEC/CMRRCD/2006-158/134/Admin/44 dated
August 07, 2012.

BOARD MEETING ATTENDANCE AND REMUNERATION OF DIRECTORS

During the year ended on December 31, 2017 a total number of 10 (Ten)) Board Meetings were held and attendance of
directors are presented on page 39 and their remuneration paid during the year are given in Notes- 31 in this Annual
Report as per clause1.5 (xx) of the BSEC Notification No. SEC/CMRRCD/2006-158/134/Admin/44 dated August 07, 2012.

RELATED PARTY TRANSACTIONS

In the ordinary course of business a number of transactions with other entities that fall within the definition of related
party contained in BAS 24: Related party disclosures; The Company extends leases/loans to related parties including its
Directors and related Companies. A statement of related party transactions along with their basis has been presented on
page 86 in this Annual Report as per clause1.5 (vi) of the BSEC Notification No. SEC/CMRRCD/2006-158/134/Admin/44
dated August 07, 2012.

COMPLIANCE REPORT ON CORPORATE GOVERNANCE

Status of compliance with the conditions imposed by Bangladesh Securities and Exchange Commission’s Notification No.
SEC/CMRRCD/2006-158/134/Admin/44 dated August 07, 2012, along with a certificate from a practicing Chartered
Accountant have been presented on page 28 in this Annual Report as Compliance with BSEC’s Notification.

FINANCIAL RESULT AND PROPOSED APPROPRIATION

The financial results of the Company and the proposed appropriation of profit of the year 2017 are summarized below with
explanations in the enclosed audited Financial Statements:

Profit after tax Tk. 307, 099,348

Retained earnings brought forward Tk. 2,498,351
Transfer to Statutory Reserve (20% on profit after tax) Tk. (61,419,870)
Profit available for declaration of Dividend for the year 2017 Tk. 248,177,829

24 Annual Report 2017

 DIRECTORS' REPORT

DIVIDEND
The Board of Directors of the Company has recommended 23.50% Stock dividend (i.e. 23.50 bonus shares for every 100
shares) for the year ended December 31, 2017 to its shareholders for approval in this AGM.

FORMATION OF SEPARATE SUBSIDIARY FOR MERCHANT BANKING ACTIVITIES

Pursuant to the requirement of Bangladesh Securities and Exchange Commission, GSP Finance Company (Bangladesh)
Limited formed a subsidiary in the name and style “GSP Investments Limited” with a view to separate its Merchant
Banking operation which was approved by Bangladesh Securities and Exchange Commission vide their letter no.
SEC/Reg./MB/SUB-16/2011/113 dated August 14, 2014. GSP Investments Limited is duly incorporated with the RJSC as
a private limited company with an authorized capital of Tk. 500 million.

The Principal Activities of GSP Investments Limited are:

• Issue Management
• Underwriting
• Portfolio Management
• Corporate Advisory Services
• Securities Trading Services
• Margin Loan

DIRECTORS RETIREMENT AND REAPPOINTMENT

In accordance with the section no. 91 (2) of the Companies Act 194 and Article no.116 of the Article of Association of the
Company one third (1/3) directors are to retire from the Board of Directors and accordingly (1) Mr. Wolf- Peter Berthold
and (2) Ms. Silwat A. Haider Director of the Company will retire and being eligible, all of them offered themselves for
re-election.

The Board of Directors of the Company in its 204th Meeting held on November 16, 2017 appointed Mr. Wajid Ali Khan
Panni having address at Apt.# 201, Road # 30, House # 14, Gulshan-1, Dhaka-1212 as an Independent Director of the
Company for the period of 03 (Three) years as per “Corporate Governance” notification no.
SEC/CMRRCD/2006-158/134/Admin/44 dated August 07, 2012 issued by Bangladesh Securities and Exchange
Commission (BSEC).

Annual Report 2017 25

 DIRECTORS' REPORT

APPOINTMENT OF AUDITORS

The Company’s Auditors Malek Siddique Wali, Chartered Accountants will retire in the 23rd Annual General Meeting (AGM)
of the Company and being eligible for re-appointment as per section 212 of the Companies Act 1994 and DFIM Circular no.
04 dated April 30, 2015 of Bangladesh Bank, the Board of Directors of the Company recommended for approval of the
appointment of Malek Siddiqui Wali, Chartered Accountants as Auditors of the Company for the year 2018 with the same
fee of Tk. 170,000 plus VAT.

FUTURE OUTLOOK

The major challenges for the year 2018 will be stiff competition from banks and other financial institutions as rate of
interest has started rising on deposits and it is apprehended that during the year the market will not be as liquid as it was
throughout the year 2017. Despite the challenges, GSP Finance Company (Bangladesh) Limited will continue to look into
its potentialities and development options with its business strategy. Development of an appropriate market niche,
expansion in unexplored markets and quality asset growth with enhanced customer service shall be our priority. GSPB is
also on its look out for deposits at comparative rates to match the demands of customers for Loans & advances to survive
in the market.

I feel it is a great privilege to inform you that being satisfied with our performance Ministry of Finance has included us in
the eligible list of 14 Non-Banking Financial Institutions (NBFIs) among 34 NBFIs operating in the market vide their letter
no. 53.00.0000.331.99.001.17-281 dated 26th November, 2017 to receive along with private Banks up to 20% of Annual
Development Program (ADP) funds from Autonomous & Semi-Autonomous bodies and 25% of their own funds from
Government, Semi-Government, Autonomous and Semi- Autonomous bodies.

Due to this privilege our Company will have edge over the non-eligible NBFIs to mobilize substantial amounts of big
volume deposits.

ACKNOWLEDGEMENT

On behalf of the Board of Directors I would like to express my sincere thanks to our valued shareholders, regulatory
authorities like Bangladesh Bank, Bangladesh Securities and Exchange Commission, Stock Exchanges, RJSC and other
business associates for their guidance valuable suggestions, continuous support and co-operation extended during the
period under review. I would like to thank our auditor Malek Siddiqui Wali Chartered Accountants for their efforts in
timely completion of the audit. I also thank our dedicated management team and employees whose hard work and firm
commitment made the year a successful one. We hope to get support, advice and encouragement from all of you for our
continuous and unhindered growth.

May Allah be with us throughout our journey.

On behalf of the Board of Directors

Feroz U. Haider
Chairman

26 Annual Report 2017

REPORT OF THE AUDIT COMMITTEE
The Audit Committee as a sub- committee of the Board of Directors of the Company and the Audit Committee assists the
Board of Directors in ensuring that the financial statements reflect true and fair view of the state of the affairs of the
Company and in ensuring a good monitoring system within the business.

Composition of the Committee

All the members of the Audit Committee are Non-executive Directors. The committee has five members with three
members forming a quorum. The Chairman of the committee is an Independent Director of the Company. During the year
the Audit Committee comprised of the following Directors of the Board:

Sl Name of members Position in the committee Position in the Board

1. Col. M. Nurul Islam Psc.(Retd.) Chairman Independent Director
2. Mr. Saber Hossain Chowdhury Member Director
3. Dr. ATM Shamsul Huda Member Independent Director
4. Mr. Mohamed Abdul Jalil Member Director
5. Mr. Moin U. Haider Member Director
Meetings of the Audit Committee
The Committee held four meetings during the year 2017. The Senior General Manager (Finance) & Company Secretary, the
Head of Internal Control & Compliance and other non-members attended the meeting by invitation of the Chairman.

Activities of the Audit Committee

The Audit Committee carried out the following activities during the year 2017
- Reviewed the financial and other systems including internal control and its reporting procedure;
- Reviewed the duties, responsibilities, functions, degree of independence, due diligence with due care, objectivity and staffing of
internal audit department;
- Recommend to the Board regarding appointment of the external auditors and their terms of appointment;
- Reviewed all the operational policies before being approved by the Board;
- Reviewed the effectiveness and independence for the statutory auditors;
- Reviewed along with the management, the quarterly and the half yearly financial statements before submission to the Board for approval.
Reviewed along with the management, the annual financial statements before submission to the Board for approval;
- Strict adherence and compliance with the Bangladesh Accounting Standards and recommended the best accounting practices;
- Reviewed the delinquent portfolio and provided suitable guidelines;

Acknowledgement
The Board Audit Committee would like to express their thanks to the Members of the Board Audit Committee,
management, auditors and all employees for their dedication and efforts during the year 2017.
On behalf of the Audit Committee

Col. M. Nurul Islam psc.(Retd.)

Chairman

Annual Report 2017 27

 KAZI ZAHIR KHAN & CO.
CHARTERED ACCOUNTANTS
KvRx Rwni Lvb GÛ †Kvs
PvUvW© GKvD›U¨v›Um|

Certificate on
Compliance of Corporate Governance guidelines to
The Shareholders of GSP Finance Company (Bangladesh) Limited.

We have examined the compliance of corporate governance guidelines of the Bangladesh Securities and
Exchange Commission (“BSEC”) by GSP Finance Company (Bangladesh) Limited (the “Company”) as stipulated
in clause 7(i) of the BSEC notification no. SEC/CMRRCD/2006-158/134/Admin/44 dated August 07, 2012 for
the year ended 31 December, 2017.

The compliance of corporate governance guidelines as stated in the aforesaid notification and reporting of the
status of compliance is the responsibility of the Company’s management. Our examination for the purpose of
issuing this certification was limited to the checking of procedures and implementations thereof, adopted by
the Company for ensuring the compliance of conditions of corporate governance and correct reporting of
compliance status on the attached statement on the basis of evidence gathered and representation received.

To the best of our information and according to the explanations given to us, we certify that, except as reported
on the attached status of compliance statement, the Company has complied with the conditions of corporate
governance stipulated in the above mentioned BSEC notification dated August 07, 2012 for the year ended 31
December, 2017.

N.H. Khan, FCA

Kazi Zahir Khan & Co.
Dated: February 01, 2018 Chartered Accountants

28 Annual Report 2017

STATUS OF COMPLIANCE WITH THE
CORPORATE GOVERNANCE GUIDELINES (CGG)

Status of compliance with the conditions imposed by the Notification No SEC/CMRRCD/2006-158/134/Admin/44 dated
August 07, 2012 of Bangladesh Securities and Exchange Commission (BSEC) issued under section 2CC of the Securities
and Exchange Ordinance 1969. Detailed in Annexure I, II & III below:
Annexure I

Condition Compliance Status

No. Title Remarks
Complied Not Complied

1.1 Board's Size: The number of Board members

The number of the Board members of of the Company is nine (9)
the Company shall not be less than 5 including three (3) Independent
(five) and more than 20 (twenty) Directors as prescribed by the
Bangladesh Bank.
1.2 Independent Directors
1.2(i) At least one fifth (1/5) of the total
number of directors in the Company's
Board shall be Independent Directors
1.2(ii)(a) Who either does not hold any share in .
the company or holds less than one
percent (1%) shares of the total paid up
shares of the company
1.2(ii)(b) Who is not a sponsor of the company
and is not connected with the
company's any sponsor or director or
shareholder who holds one percent
(1%) or more shares of the total paid-up
shares of the company on the basis of
family relationship.
1.2(ii)(c) Who does not have any other
relationship, weather pecuniary or
otherwise, with the company or its
subsidiary/associated companies
1.2(ii)(d) Who is not a member, director or officer
of any stock exchanges;
1.2(ii)(e) Who is not a shareholder, director or
officer of any member of stock
exchange or an intermediary of the
capital market;
1.2(ii)(f) Who is not a partner or an executive or
was not a partner or an executive
during the preceding 3 (three) years of
the concerned company's statutory
audit firm;

Annual Report 2017 29

 CORPORATE GOVERNANCE GUIDELINES

1.2(ii)(g) Who shall not be an independent director

in more than 3 (three) listed companies;

1.2(ii)(h) Who has not been convicted by a court

of competent jurisdiction as a defaulter
in payment of any loan to a bank or a
non-bank financial institution (NBFI);
1.2(ii)(i) Who has not been convicted for a criminal
offence involving moral turpitude;

1.2(iii) The Independent Director(s) shall be

appointed by the Board of Directors and
approved by the Shareholders in the
Annual General Meeting (AGM)
1.2(iv) The post of independent director(s)
cannot remain vacant for more than 90
(ninety) days; ;
1.2(v) The Board shall lay down a code of
conduct of all Board members and
annual compliance of the code to be
recorded
1.2(vi) The tenure of office of an independent
director shall be for a period of 3 (three)
years, which may be extended for 1 (one)
term only
1.3 Qualification of Independent Director (ID)
1.3(i) Independent Director shall be a
knowledgeable individual with integrity
who is able to ensure compliance with
financial, regulatory and corporate laws
and can make meaningful contribution
to business.

1.3(ii)
The person should be a Business Leader/
Corporate Leader/Bureaucrat/University
Teacher with Economics or Business
Studies or Law background/Professionals
like Chartered Accountants, Cost &
Management Accountants, Chartered
Secretaries. The Independent Director
must have at least 12 (twelve) years of
corporate management/professional
experiences.

30 Annual Report 2017

 CORPORATE GOVERNANCE GUIDELINES

1.3(iii) In special cases the above

qualifications may be relaxed subject Not applicable
to prior approval of the Commission.

1.4 Chairman of the Board and Chief

Executive Officer:
The positions of the Chairman of the
Board and the Chief Executive Officer
of the companies shall be filled by
different individuals. The Chairman
of the company shall be elected from
among the directors of the company.
The Board of Directors shall clearly
define respective roles and
responsibilities of the Chairman and
the Chief Executive Officer.

1.5 The Directors' Report to Shareholders

1.5(i) Industry outlook and possible future
developments in the industry
1.5(ii) Segment-wise or product-wise
performance
1.5(iii) Risks and concerns
1.5(iv) A Discussion on cost of goods sold,
gross profit margin and net profit
margin
1.5(v) Discussion on continuity of any
Not applicable
extra-ordinary gain or loss
1.5(vi) Statement of all related party
transactions
1.5(vii) Utilization of proceeds from public
issues, rights issues and/or through Not applicable
any others instruments
1.5(viii) An explanation if the financial results
deteriorate after the company goes
for Initial Public Offering (IPO), Not applicable
Repeat Public Offering (RPO), Rights
Offer, Direct Listing, etc.

1.5(ix) If significant variance occurs

between Quarterly Financial
performance and Annual Financial
Statements, the management shall Not applicable
explain about the variance on their
Annual Report

Annual Report 2017 31

 CORPORATE GOVERNANCE GUIDELINES

1.5(x) Remuneration to directors including

independent directors
1.5(xi) The financial statements prepared by
the management of the issuer
company present fairly its state of
affairs, the result of its operations,
cash flows and changes in equity.
1.5(xii) Proper books of account of the issuer
company have been maintained

1.5(xiii) Appropriate accounting policies have

been consistently applied in
preparation of the financial
statements and that the accounting
estimates are based on reasonable
and prudent judgment
1.5(xiv) International Accounting Standards
(IAS)/Bangladesh Accounting Standards
(BAS) / International Financial Reporting
Standards (IFRS) / Bangladesh Financial
Reporting Standards (BFRS), as
applicable in Bangladesh, have been
followed in preparation of the financial
statements and any departure
there-from has been adequately
disclosed

1.5(xv) The system of internal control is

sound in design and has been
effectively implemented and
monitored
1.5(xvi) There are no significant doubts upon
the issuer company's ability to
continue as a going concern. If the
issuer company is not considered to
be a going concern, the fact along
with reasons thereof should be
disclosed.
1.5(xvii) Significant deviations from the last
year's operating results of the issuer
company shall be highlighted and the
reasons thereof should be explained

1.5(xviii) Key operating and financial data of at

least preceding 5 (five) years shall be
summarized

32 Annual Report 2017

 CORPORATE GOVERNANCE GUIDELINES

1.5(xix) If the issuer company has not Not applicable, as the company
declared dividend (cash or stock) for declared 23.50% stock dividend
the year, the reasons thereof shall (i.e. 23.50 bonus shares for every
be given 100 shares) for the year ended
December 31, 2017
1.5(xx) The number of Board meetings held
during the year and attendance by
each director shall be disclosed
1.5(xxi) The pattern of shareholding shall be
reported to disclose the aggregate
number of shares (along with name
wise details where stated below)
held by:
1.5(xxi)(a) Parent/Subsidiary/Associated
Companies and other related parties
(name wise details):

1.5(xxi)(b) Directors, Chief Executive Officer,

Company Secretary, Chief Financial
Officer, Head of Internal Audit and
their spouses and minor children
(name wise details):
1.5(xxi)(c) Executives;
1.5(xxi)(d) Shareholders holding ten percent
(10%) or more voting interest in the
company (name wise details).
1.5(xxii) In case of the appointment/
re-appointment of a director the
company shall disclose the following
information to the shareholders:

1.5(xxi)(a) A brief resume of the director;

1.5(xxi)(b) Nature of his/her expertise in
specific functional areas;
1.5(xxi)(c) Names of companies in which the
person also holds the directorship
and the membership of committees
of the board
2.0 Chief Financial Officer (CFO), Head of Internal Audit and Company Secretary (CS)
2.1 Appointment:
The Company shall appoint a Chief
Financial Officer (CFO), a Head of
Internal Audit (Internal Control and
Compliance) and a Company Secretary
(CS). The Board of Directors should
clearly define respective roles,
responsibilities and duties of the CFO,
the Head of Internal Audit and the CS.

Annual Report 2017 33

 CORPORATE GOVERNANCE GUIDELINES

2.2 Requirement to attend

the Board Meetings:
The CFO and the Company Secretary of
the companies shall attend the
meetings of the Board of Directors,
provided that the CFO and/or the
Company Secretary shall not attend
such part of a meeting of the Board of
Directors which involves consideration
of an agenda item relating to their
personal matters.

3.0 Audit Committee:

3.0(i) The Company shall have an Audit
Committee as a sub-committee of the
Board of Directors
3.0(ii) The Audit Committee shall assist the
Board of Directors in ensuring that the
financial statements reflect true and
fair view of the state of affairs of the
company and in ensuring a good
monitoring system within the
business.
3.0(iii) The Audit Committee shall be
responsible to the Board of Directors.
The duties of the Audit Committee
shall be clearly set forth in writing.

3.1 Constitution of the Audit Committee:

3.1(i) The Audit Committee shall be
composed of at least 3 (three)
members.
3.1(ii) The Board of Directors shall appoint
members of the Audit Committee who
shall be directors of the company and
shall include at least 1 (one)
Independent Director
3.1(iii) All members of the Audit Committee
should be "financially literate" and at
least 1 (one) member shall have
accounting or related financial
management experience.
3.1(iv) Filling of casual vacancy in the
Audit Committee

34 Annual Report 2017

 CORPORATE GOVERNANCE GUIDELINES

3.1(v) The Company Secretary shall act as the

secretary of the Committee;
3.1(vi) The quorum of the Audit Committee
meeting shall not constitute without
Independent Director ;
3.2 Chairman of the Audit Committee
3.2(i) The Board of Directors shall select 1
(one) member of the Audit Committee
to be Chairman of the Audit Committee,
who shall be an Independent Director ;

3.2(ii) Chairman of the Audit Committee shall

remain present in the Annual General
Meeting (AGM)
3.3 Role of Audit Committee
3.3(i) Oversee the financial reporting
process
3.3(ii) Monitor choice of accounting policies
and principles
3.3(iii) Monitor Internal Control Risk
management process
3.3(iv) Oversee hiring and performance of
external auditors
3.3(v) Review along with the management,
the annual financial statements
before submission to the board for
approval
3.3(vi) Review along with the management,
the quarterly and half yearly financial
statements before submission to the
Board for approval
3.3(vii) Review adequacy of Internal Audit
function
3.3(viii) Review statement of significant
related party transactions submitted
by the management
3.3(ix) Review management letters/letter of
internal control weakness issued by
statutory auditors
Declaration of Audit Committee by
3.3(x) the company regarding utilization of
IPO/PRO, Right Issue money

Annual Report 2017 35

 CORPORATE GOVERNANCE GUIDELINES

3.4 Reporting of the audit committee:

3.4.1(i) The Audit Committee shall report on
its activities to the Board of
Directors
3.4.1(ii) The Audit Committee shall
immediately report to the Board of
Directors on the following findings, if
any:
3.4.1(ii)(a) Report on conflicts of interests; No such event found
3.4.1(ii)(b) Suspected or presumed fraud or
irregularity or material defect in the
internal control system; No such event found
3.4.1(ii)(c) Suspected infringement of laws,
including securities related laws,
rules and regulations; No such event found
3.4.1(ii)(d) Any other matter which shall be
disclosed to the Board of Directors No such event found
immediately

3.4.2 Reporting to the authorities-

Reported to the Board of Directors
about anything which has material No such event found
impact on the financial condition and
results of operation

3.5 Reporting to the Shareholders and

General Investors:
Report on the activities carried out
by the Audit Committee, including No such event found
any report made to the Board of
Directors under condition 3.4.1(ii)
above during the year, shall be
signed by the Chairman of the Audit
Committee and disclosed in the
Annual Report of the Issuer
Company.

4.0 External/Statutory Auditors:

The issuer company should not
engage its external/statutory
auditors to perform the following
services of the company; namely:
4.0(i) Appraisal or valuation services or
fairness opinions

36 Annual Report 2017

 CORPORATE GOVERNANCE GUIDELINES

4.0(ii) Financial information systems design

and implementation
4.0(iii) Book-keeping or other services
related to the accounting records or
financial statements
4.0(iv) Broker-dealer services
4.0(v) Actuarial services
4.0(vi) Internal audit service
4.0(vii) Any other services that the Audit
Committee determines
4.0(viii) No partner on employees of the
external audit firms shall possess
any share of the company they audit
at least during the tenure of their
audit assignment of that company
5.0 Subsidiary Company:
5.0(i) Provisions relating to the
composition of the Board of Directors
of the holding company shall be
made applicable to the composition
of the Board of Directors of the
subsidiary company
5.0(ii) At least 1 (one) Independent Director
on the Board of Directors of the
holding company shall be a Director
on the Board of Directors of the
subsidiary company
5.0(iii) The minutes of the Board Meeting of
the subsidiary company shall be
placed for review at the following
Board meeting of the holding
company
5.0(iv) The minutes of the respective Board
Meeting of the holding company
shall state that they have reviewed
the affairs of the subsidiary company
also
The Audit Committee of the holding
5.0(v) company shall also review the
financial statements, in particular
the investments made by the
subsidiary company

Annual Report 2017 37

 CORPORATE GOVERNANCE GUIDELINES

6.0 Duties of Chief Executive Officer (CEO) and Chief Financial Officer (CFO):
The CEO and CFO shall certify to the Board that:
6.0(i) They have received financial
statements for the year and that to
the best of their knowledge and
belief:
6.1(i)(a) These statements do not contain
any materially untrue statement or
omit any material fact or contain
statements that might be
misleading;
6.1(i)(b) These statements together present
a true and fair view of the
company's affairs and are in
compliance with existing accounting
standards and applicable laws.
6.1(ii) There are, to the best of knowledge
and belief, no transactions entered
into by the company during the year
which are fraudulent, illegal or
violation of the company's code of
conduct.
7.0 Reporting and Compliance of Corporate Governance:
7.0(i) The Company shall obtain a
certificate from a practicing
Professional Accountant/Secretary
(Chartered Accountant/Cost and
Management Accountant/Chartered
Secretary) regarding compliance of
conditions of Corporate Governance
Guidelines of the Commission and
shall send the same to the
shareholders along with the Annual
Report on a yearly basis.

The directors of the company shall

7.0(ii) state, in accordance with the
Annexure attached, in the Director's
Report whether the company has
complied with these conditions.

38 Annual Report 2017

 CORPORATE GOVERNANCE GUIDELINES

Compliance of Section 1.5(xx) Annexure – II

Meeting of the Board of Directors and its Sub- Committees held during the year and attendance by each Director:-
Board of Directors Meeting Executive Committee Meeting Audit Committee Meeting
Composition
Meeting held Attended Meeting held Attended Meeting held Attended
Mr. Feroz U. Haider 10 10 17 12
Mr. Saber Hossain Chowdhury 10 6 17 8 4 2
Mr. Wolf-Peter Berthold 10 9
Mr. Moin U. Haider 10 8 17 14 4 3
Ms. Silwat A. Haider 10 8
Mr. Mohamed Abdul Jalil 10 5 17 8 4 3
Dr. ATM Shamsul Huda 10 7 4 3
Independent Director
Col. M. Nurul Islam Psc. (Retd.) 10 10 17 14 4 4
Independent Director
Mr. Wajid Ali Khan Panni 10 10
Independent Director

Compliance of Section 1.5 (xxi)

The pattern of Shareholding Annexure – III
a) Parent/Subsidiary/Associated companies and other related party:
Name Relation Shares Held
Nil Nil

b) Directors, Chief Executive Officer/Managing Director, Company Sectary, Chief Financial Officer, Head of Internal Audit and
their spouse and minor children:
Shares
Name Held (nos.)
Mr. Feroz U. Haider Sponsor Director & Chairman of the Board 8,440,611
Mr. Saber Hossain Chowdhury Vice-Chairman of the Board (Nominated by Karnaphuli Industries Ltd.) 9,491,386
Mr. Wolf-Peter Berthold Sponsor Director of the Board 3,752,167
Mr. Mohamed Abdul Jalil Director of the Board (Nominated by Tai Ping Asian Investment Ltd.) 10,897,921
Mr. Moin U. Haider Director of the Board 2,092,655
Ms. Silwat A. Haider Director of the Board 2,092,658
Col. M. Nurul Islam psc. (Retd,) Independent Director 78,772
Dr. ATM Shamsul Huda Independent Director None
Mr. Wajid Ali Khan Panni Independent Director None
Mr. Abu Zafar Hedaytul Islam Managing Director & CEO None
Mr. Mizanur Rahman Deputy Managing Director & Company Secretary None
Mr. Wahidul Islam Chief Financial Officer (C.C.) None
Mr. Masud Rana Head of Internal Audit (C.C.) None

Annual Report 2017 39

 CORPORATE GOVERNANCE GUIDELINES

c) Executives (Top five salaried employees of the Company, other than Directors, CEO, CFO, Company Secretary and Head
of Internal Audit):

Designation Name Shares Held

Deputy Managing Director Mr. Zillur Rhahim Chowdhury None
Sr. General Manager (Credit & Marketing) Mr. Syed Sharif Zamal None
Deputy General Manager ( Sales) Mr. Shazzad Hossain None
Head of HR & Admin (C.C.) A.K.M. Mojibul Haque None
Head of Recovery (C.C.) Mr. Raihanul Islam None

d) Shareholding ten percent (10%) or more voting interest in the company:

Name of Shareholder Percentage Shares Held (nos.)

Tai Ping Asian Investment Limited 10.42 % 10,897,921

40 Annual Report 2017

 Annexure - IV
Compliance Report on the good governance guideline issued by the Bangladesh Bank
By the DFIM Circular No.7 dated 25 September 2007, Bangladesh Bank issued a policy on responsibility & accountability of
Board of Directors, Chairman & Chief Executive of the financial institution. The Board of Directors of the Company has
taken appropriate steps to comply with the guidelines and implemented the same.

Status report on compliance with those guidelines is given below:

Compliance
Sl. No. Particulars
Status
1. (a) Work-planning and strategic management:
(i) The Board shall determine the objectives and goals and to this end shall chalk out Complied
strategies and work-plans on annual basis. It shall specially engage itself in the affairs of
making strategies consistent with the determined objectives and goal and in the issues
relating to structural change and reorganization for enhancement of institutional efficiency
and other relevant policy matters. It shall analyze/monitor at quarterly rests the
development of implementation of the work-plans.
(ii) The Board shall have its analytical review incorporated in the Annual report as regard Complied
the success/failure in achieving the business and other targets as set out in its annual
work-plan and shall apprise the shareholders of its opinions/recommendations on future
plans and strategies.
(iii) The Board will set the Key Performance Indicator (KPI)s for the Managing Director / CEO Complied
and other senior executives and will evaluate half yearly / yearly basis.
(b) Formation of sub-committee:
Executive Committee may be formed in combination with directors (excluding any alternate Complied
Directors) of the Company only for rapid settlement of emergency matters (approval of
loan/lease application, write-off, rescheduling etc.) arisen from the regular business
activities.
(c) Financial Management:
(i) Annual Budget and statutory financial statements shall be adopted finally with the Complied
approval of the Board.
(ii) Board shall review and examine in quarterly basis various statutory financial statements Complied
such as statement of income-expenses, statement of loan/lease, statement of liquidity,
adequacy of capital, maintenance of provision, legal affairs including actions taken to
recovery of overdue loan/lease.
(iii) Board shall approve the Company's policy on procurement and collection and shall also Complied
approve the expenditures according to policy. The Board shall delegate the authority on the
Managing Director and among other top executives for approval of expenditure within
budget to the maximum extend.

(iv) The Board shall adopt the operation of bank accounts. Groups may be formed among Complied
the management to operate bank accounts under joint signatures.

Annual Report 2017 41

 (d) Management of loan/lease/investments:

(i) Policy on evaluation of loan/lease/investment proposal, sanction and disbursement and Complied
its regular collection and monitoring shall be adopted and reviewed by the Board regularly
based on prevailing laws and regulations. Board shall delegate the authority of
loan/lease/investment specifically to management preferably on Managing Director and
other top executives.
(ii) No director shall interfere on the approval of loan proposal associated with him. The Complied
director concerned shall not give any opinion on that loan proposal.
(iii) Any syndicated loan/lease/investment proposal must be approved by the Board. Complied
(e) Risk Management:
Complied
Risk Management Guideline framed in the light of Core Risk Management Guideline shall be
approved by the Board and reviewed by the Board regularly.

(f) Internal control and compliance management :

A regular Audit Committee as approved by the Board shall be formed. Board shall evaluate
the reports presented by the Audit Committee on compliance with the recommendation of Complied
internal auditor, external auditors and Bangladesh Bank Inspection team.

(g) Human resource management:

Board shall approve the policy on Human Resources Management and Service Rule. Complied
Chairman and Director of the Board shall not interfere on the administrative job in line with
the approved Service Rule.
Only the authority for the appointment and promotion of the Managing Director/Deputy Complied
Managing Director/General Manager and other equivalent position shall lie with the Board
incompliance with the policy and Service Rule. No director shall be included in any Executive
Committee formed for the purpose of appointment and promotion of others.
h) Appointment of Managing Director / CEO:
The Board shall appoint a competent Managing Director / CEO for the Company with the Complied
approval of the Bangladesh Bank and shall approve any increment of his salary and
allowances.
(i) Benefits offer to the Chairman:
Chairman may be offered an office room, a personal secretary, a telephone at the office, a Complied
vehicle in the business-interest of the Company subject to the approval of the Board.

2. Responsibilities of the Chairman of the Board of Directors:

(a) Chairman shall not participate in or interfere into the administrative or operational and Complied
routine affairs of the Company as he has no jurisdiction to apply executive power;
(b) The minutes of the Board Meetings shall be signed by the Chairman; Complied
(c) Chairman shall sign-off the proposal for appointment of Managing Director and increment Complied
of his salaries & allowances;

42 Annual Report 2017

3. Responsibilities of Managing Director:
(a) Managing Director shall discharge his responsibilities on matters relating to financial, Complied
business and administration vested by the Board upon him. He is also accountable for
achievement of financial and other business targets by means of business plan, efficient
implementation of administration and financial management;
(b) Managing Director shall ensure compliance of Financial Institutions Act 1993 and other Complied
relevant circulars of Bangladesh Bank and other regulatory authorities;
(c) All recruitment/promotion/training, except recruitment/promotion/training of DMD / Complied
GM, shall be vested upon the Managing Director. He shall act such in accordance the
approved HR Policy of the Company;
(d) Managing Director may re-schedule job responsibilities of employees; Complied
e) Managing Director may take disciplinary actions against the employees except DMD / GM; Complied
(f) Managing Director shall sign all the letters/statements relating to compliance of policies Complied
and guidelines. However, Departmental/Unit heads may sign daily letters/statements as
set out in DFIM circular no.2 dated 06 January 2009 if so authorized by MD.

Annual Report 2017 43

FINANCIAL HIGHLIGHTS
2013 2014 2015 2016 2017
Operational Performance
Operating revenue 559,934,056 629,990,628 744,674,276 922,101,313 1,038,570,606
Financial expenses 317,908,442 330,786,422 356,800,194 311,603,594 379,714,179
Operating expenses 53,877,976 62,795,400 64,854,010 63,698,887 65,560,469
Profit before taxation 156,203,668 187,324,191 315,285,976 480,310,705 513,340,910
Net Profit after tax 90,330,294 106,895,244 188,561,860 286,252,109 307,099,348
Financial performance
Lease & term finance 2,212,831,562 3,323,380,472 3,650,715,603 4,791,656,232 6,627,994,210
Investor's portfolio loan 1,153,616,021 878,117,016 1,039,235,154 1,345,966,755 1,442,570,276
Investment 227,037,547 230,488,285 230,841,294 245,856,625 309,186,018
Other assets 118,194,773 332,743,739 345,895,783 341,886,709 364,812,748
Current assets 2,286,317,019 2,458,384,754 2,914,782,413 3,310,697,748 3,732,765,320
Total asset 4,223,448,549 5,211,282,504 6,244,266,308 8,134,124,311 9,961,488,185
Term deposits 1,823,862,827 2,204,593,155 2,954,368,170 3,689,298,401 4,177,070,229
Current liabilities 1,801,432,900 2,061,741,713 2,525,563,033 2,829,211,791 3,029,386,585
Long term liabilities 992,092,995 1,612,722,894 1,993,323,519 2,790,173,832 4,340,455,493
Total Liabilities 2,793,525,895 3,674,464,607 4,518,886,552 5,619,385,623 7,369,842,078
Financial ratios
Current ratio (Times) 1.27 1.19 1.15 1.17 1.23
Financial expense coverage (Times) 1.49 1.57 1.88 2.54 2.35
Debt/Equity (Times) 1.60 1.99 2.19 1.84 2.32
Equity Multiplier 2.95 3.39 3.62 3.23 3.84
Net interest margin % 4.42 4.81 5.39 7.61 6.36
Net profit margin (%) 16.13 16.97 25.32 31.04 29.57
Return on equity (%) 6.52 7.21 11.56 13.50 12.03
Return on assets (%) 2.14 2.05 3.02 3.52 3.08
Rate of Dividend (%) 12.00 55.00 15.50 22.00 23.50
Price earnings ratio (Times) 21.02 20.90 8.32 8.37 10.46
Dividend (%) 12.00 55.00 15.50 22.00 23.50
Financial expense to total expenses (%) 85.51 84.05 84.62 83.03 85.28
Operating expense to operating revenue (%) 9.62 9.97 8.71 6.91 6.31
EPS (TK.) 1.50 1.58 1.80 2.74 2.94
Equity statistics
Authorized capital 2,000,000,000 2,000,000,000 2,000,000,000 2,000,000,000 2,000,000,000
Number of shares 60,272,291 67,504,965 104,632,695 104,632,695 104,632,695
Paid up Capital 602,722,910 675,049,650 1,046,326,950 1,046,326,950 1,046,326,950
Year end market price 31.50 33.10 15.00 22.90 30.70
Net asset value per share 23.72 22.77 16.49 24.03 24.77

44 Annual Report 2017

Total asset Shareholder’s equity
BDT in million BDT in million

12000 3000
10000
8000 2000
6000
4000 1000
2000
0 0
13 14 15 16 17 13 14 15 16 17

Current asset Term deposit

BDT in million BDT in million

4000 5000
3000 4000
3000
2000
2000
1000 1000
0 0

13 14 15 16 17 13 14 15 16 17

Investor’s portfolio loan Net asset value per share

BDT in million BDT per share

2000 30
1500
20
1000
500 10
0 0
13 14 15 16 17 13 14 15 16 17

Operating revenue Net profit after tax

BDT in million BDT in million

1200
400
1000
800 300
600 200
400
200 100
0 0

13 14 15 16 17 13 14 15 16 17

Annual Report 2017 45

 Sectorwise Leases, Loans & Advances

Textiles
Garments
21.64% 3.60%
6.19% Transport
6.38% Chemicals and Pharma
4.51% Iron, Steel
Agriculture
Power
13.10%
IT
Packaging
0.65% Food
1.27%
17.87% 2.13% Services
4.68%
Portfolio Loan
17.02% 0.96%
Others

Capitalization

21.35% 12.10%
Paid up Capital

17.87% Reserve & Retained Earnings

Security Deposits

Term Deposits
0.37%
Bank Borrowing

48.31%

46 Annual Report 2017

 CHARTERED ACCOUNTANTS

AUDITORS’ REPORT TO THE SHAREHOLDERS

OF
GSP Finance Company (Bangladesh) Limited

We have audited the accompanying consolidated financial statements of GSP Finance Company (Bangladesh) Limited and its subsidiary
(the “Group”) as well as the separate financial statements of GSP Finance Company (Bangladesh) Limited (“the Company”) which
comprise the consolidated and the separate balance sheet as at 31 December 2017, the consolidated and the separate profit and loss
account, statements of changes in equity, cash flow statements for the year then ended and a summary of significant accounting
policies and other explanatory notes.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation of the consolidated financial statements of the Group and also the separate financial
statements of the Company that give a true and fair view in accordance with Bangladesh Financial Reporting Standards (BFRS), the
Financial Institutions Act, 1993, the rules and regulations issued by Bangladesh Bank, the Securities and Exchange Rules, 1987, the
Companies Act, 1994 and other applicable laws and regulations 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.

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

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements of the
Company. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of
the financial statements of the Company, whether due to fraud or error. In making those risk assessments, the auditors consider
internal control relevant to the entity’s preparation and fair presentation of the financial statements of the Company 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 polices used and the reasonableness of
accounting estimates made by management, as well as evaluating the overall presentation of the financial statements of the Company.
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 consolidated financial statements of the Group and the separate financial statements of the Company give a trueand
fair view of the consolidated financial position of the Group and the separate financial position of the Company as at 31 December
2017, and of the consolidated and the separate financial performance and cash flows of the Group and the Company for the year then
ended in accordance with Bangladesh Financial Reporting Standards (BFRS) and comply with the applicable sections of the Financial
Institutions Act, 1993, the rules and regulations issued by Bangladesh Bank, the Companies Act, 1994, the Securities and Exchange
Rules, 1987 and other applicable laws and regulations.

Associated firm of Reddy Siddiqui & Kabani, Park View, 183-189 The Vale, London, W3 7RW, UK
E-mail: mail@reddysiddiqui.com, Website: www.reddysiddiqui.com

Annual Report 2017 47

 CHARTERED ACCOUNTANTS

We also report that:

(i) We have obtained all the information and explanation which to the best of our knowledge and belief were necessary for the
purposes of our audit and made due verification thereof and found satisfactory;
(ii) in our opinion, proper books of accounts as required by law have been kept by the Company and its subsidiary so far as it
appeared from our examination of those books and proper returns adequate for the purpose of our audit;
(iii) the consolidated balance sheet and consolidated profit and loss account of the company and the separate balance sheet and
profit and loss account of the company and its subsidiary dealt with by the report are in agreement with the books of account
and returns;
(iv) the expenditure incurred was for the purpose of the Company’s and its subsidiary’s operations;
(v) the consolidated and separate financial position of the Company as at December 31, 2017 and the consolidated and separate
income for the year then ended have been properly reflected in the consolidated and separate financial statements and the
consolidated financial statements have been prepared in accordance with the generally accepted accounting principles;
(vi) the record submitted by the parent company and the subsidiary company have been audited and consolidated properly in the
financial statements;
(vii) the company has followed the instruction issued by the Bangladesh Bank in the matters of lease/advance classification, provision
and suspension of interest;
(viii) statements sent to Bangladesh Bank has been checked on sample basis and no inaccuracy has come to our attention;
(ix) taxes and other duties collected and deposited to Government treasury by the Company as per Government instructions found
satisfactory;
(x) nothing has come to our attention that the Company has adopted any unethical means i.e. ‘window dressing’ to inflate the profit
and mismatch between the maturity of assets and liabilities;
(xi) proper measures have been taken to eliminate the irregularities mentioned in the inspection report of Bangladesh Bank and the
instructions issued by Bangladesh Bank and other regulatory authorities have been complied properly;
(xii) the internal control and the compliance of the Company is satisfactory, and effective measures have been taken to prevent
possible fraud, forgery and internal policies are being followed appropriately;
(xiii) the Company has complied with relevant laws pertaining to capital, reserve and net worth, cash and liquid assets and procedure
for sanctioning and disbursing loans/leases found satisfactory;
(xiv) the consolidated financial statements of the Group and the separate financial statements of the Company conform to the
prescribed formats and standards set in the accounting regulations issued by Bangladesh Bank after consultation with the
professional accounting body of Bangladesh;
(xv) we have reviewed over 80% of the risk weighted assets of the Group and the Company during the course of our audit and we
have spent over 1,130 person hours for the audit of books and accounts of the Group and the Company;
(xvi) all other issues which are important for the stakeholders of the Company have been adequately disclosed in the audit report.

Dated, Dhaka Malek Siddiqui Wali

February 01, 2018 Chartered Accountants

Associated firm of Reddy Siddiqui & Kabani, Park View, 183-189 The Vale, London, W3 7RW, UK
E-mail: mail@reddysiddiqui.com, Website: www.reddysiddiqui.com

48 Annual Report 2017

 GSP FINANCE COMPANY (BANGLADESH) LIMITED
CONSOLIDATED BALANCE SHEET
AS AT DECEMBER 31, 2017

Amount in Taka
Notes 2017 2016
PROPERTY AND ASSETS
Cash 50,331,928 217,362,441

In hand (including foreign currencies) 3.1(a) 742,505 246,623

Balance with Bangladesh Bank and its agents bank(s)
49,589,423 217,115,818
(including foreign currencies ) 3.2(a)

Balance with other banks and financial institutions 4(a) 204,202,446 222,528,462
In Bangladesh 204,202,446 222,528,462
Outside Bangladesh - -
Money at call and short notice 5(a) - -
Investments 6(a) 349,898,252 248,005,889
Government - -
Others 349,898,252 248,005,889
8,512,452,647 6,528,545,381
Leases ,loans and advances 7(a) 8,512,452,647 6,528,545,381
Bills Purchased and discounted 8(a) - -

Fixed assets including premises, furniture and fixtures 9(a) 969,094,458 975,450,840

Other assets 10(a) 115,580,379 92,687,245

Non-business assets 11 - -
Total assets 10,201,560,110 8,284,580,258
LIABILITIES AND CAPITAL
Liabilities
Borrowings from banks ,other financial institutions and agents: 12(a) 1,845,721,551 935,906,591

Deposits and other accounts 13(a) 4,177,070,229 3,689,298,401

Current deposits - -
Bills payable - -
Savings deposits - -
Term deposits 4,177,070,229 3,689,298,401
Bearer certificate of deposit - -
Other deposits - -
Other liabilities 14(a) 1,537,985,875 1,110,553,892
Total Liabilities 7,560,777,655 5,735,758,884
Capital / Shareholders' Equity
Paid up capital 15.2 1,046,326,950 1,046,326,950
Statutory reserve 16 380,451,704 319,031,834
Other reserve 17 916,689,624 916,689,624
Retained earnings :
Retained earnings balance 18(a) 297,314,132 266,772,943
Total equity attributable to equity holders of the company 2,640,782,410 2,548,821,351
Non-controlling interest 45 23
Total liabilities and Shareholders' equity 10,201,560,110 8,284,580,258

Annual Report 2017 49

 Amount in Taka
2017 2016
OFF-BALANCE SHEET ITEMS :

Contingent liabilities 18.1 - -

Acceptances and endorsements - -
Letter of guarantee - -
Irrevocable letter of credit - -
Bills for collection - -
Other contingent liabilities - -
-
Other commitments 18.2 - -
Documentary credits and short term trade and related transactions - -
Forward assets purchased and forward deposits placed - -
Undrawn note issuance and revolving underwriting facilities - -
Undrawn formal standby facilities, credit lines and other commitments - -
Others - -

Total off-balance sheet items including contingent liabilities - -

Net Assets Value (NAV) per share (year 2016: Restated) 25.24 24.36

The accompanying notes form an integral part of these financial statements.

Company Secretary Director Managing Director & CEO

Signed as per our annexed report of even date

Dated, Dhaka Malek Siddiqui Wali

February 01, 2018 Chartered Accountants

50 Annual Report 2017

 GSP FINANCE COMPANY (BANGLADESH) LIMITED
CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED DECEMBER 31, 2017

Amount in Taka
2017 2016
Notes
Interest income from leases,loans and advances 20(a) 1,030,187,982 921,899,971
Interest expenses on borrowings, deposits,etc 21(a) (379,714,179) (312,281,774)
Net interest income 650,473,803 609,618,197
Investment income 22(a) 43,031,721 20,127,962
Commission , exchange and brokerage 23(a) 10,686,372 10,146,167
Other operating income 24(a) 50,974,248 51,216,830
Total operating income 755,166,144 691,109,156
Salary and allowances 25(a) 44,380,127 39,658,679
Rent, taxes,insurance,electricity,etc. 26(a) 1,463,505 1,508,866
Legal expenses 27(a) 177,000 381,020
Postage,stamp,telecommunication,etc. 28(a) 523,136 442,468
Stationery,printing,advertisements,etc. 29(a) 1,849,427 1,889,197
Managing Director's salary and allowances 30(a) 5,648,055 4,836,177
Directors' fees 31(a) 1,167,000 791,000
Audit fees 32(a) 218,500 110,000
Charges on loan losses - -
Depreciation and repairs of company's assets 33(a) 6,998,117 8,742,150
Other operating expenses 34(a) 11,453,842 12,192,302
Total operating expenses 73,878,708 70,551,858
Profit before provision 681,287,436 620,557,298
Provision for leases,loans and advances & investments 35(a) 143,860,701 117,030,954
Other provision - -
Total provision 143,860,701 117,030,954
Total profit before income tax 537,426,735 503,526,344
Provision for income tax 36(a) 215,273,747 202,764,461
Net profit after income tax 322,152,988 300,761,883
Attributable to
Shareholders of the company 322,152,986 300,761,882
Non-controlling interest 2 1
Retained earnings brought forward from previous year 266,772,943 185,442,160
Appropriations: 588,925,931 486,204,043
Statutory reserve 16 61,419,870 57,250,422
Cash dividend paid from Retained earnings for the year 2016 230,191,929 162,180,677
291,611,799 219,431,099
Retained earnings carried to the balance sheet 18(a) 297,314,132 266,772,943
Earnings per share (year 2016: Restated) 38(a) 3.08 2.87

The accompanying notes form an integral part of these financial statements

Company Secretary Director Managing Director & CEO

Signed as per our annexed report of even date

Dated, Dhaka Malek Siddiqui Wali

February 01, 2018 Chartered Accountants

Annual Report 2017 51

 GSP FINANCE COMPANY (BANGLADESH ) LIMITED
CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 2017

Amount in Taka
2017 2016
Cash flows from operating activities:
Interest receipt in cash 1,011,010,888 910,521,437
Interest payment (365,762,304) (299,524,253)
Dividend receipts 7,657,236 12,346,411
Commission, Exchange and brokerage 10,686,372 10,146,167
Recoveries of loan previously written-off - -
Income taxes paid (8,279,919) (10,768,595)
Receipts from other operating activities 80,169,021 58,998,381
Payments for other operating activities (66,662,091) (62,072,063)
Cash generated from operating activities before
changes in operating assets and liabilities 668,819,203 619,647,485

Increase / decrease in operating assets and liabilities

Statutory deposit - -
Trading securities - -
Leases, loans and advances (1,983,907,266) (1,540,373,973)
Other assets 10,743,611 25,551,671
Deposit and other accounts 487,771,828 734,930,231
Other liabilities on account of customers - -
Trading liabilities - -
Other liabilities 54,127,163 (23,758,045)
(1,431,264,664) (803,650,116)
Net cash used by operating activities (762,445,461) (184,002,631)

Cash flows from investing activities:

Proceeds from sale of securities 86,886,800 40,337,318
Payments for purchases of securities (188,779,163) (37,616,283)
Purchase of fixed assets (641,736) (5,063,158)
Proceeds from sale of fixed assets - -
Payment against lease obligation - -
Net cash used by investing activities (102,534,099) (2,342,123)

Cash flows from financing activities:

Receipts of borrowings from banks, other financial
institutions and agents 1,776,511,329 569,321,150
Repayment of borrowings from banks, other financial
institutions and agents (866,696,369) (451,931,906)
Receipts against issue of share capital - -
Dividend paid in cash (230,191,929) (162,180,677.00)
Net cash flow / used by financing activities 679,623,031 (44,791,433)

Net increase / (decrease) in cash and cash equivalents (185,356,529) (231,136,187)

Effects of exchange rate changes on cash and cash equivalents - -
Cash and cash equivalents at beginning of the year 439,890,903 671,027,090
Cash and cash equivalents at the end of the year 254,534,374 439,890,903

52 Annual Report 2017

 Amount in Taka
2017 2016

Cash and cash equivalents at the end of the year

cash in hand (including foreign currencies) 742,505 246,623
Balance with Bangladesh Bank and its agent bank(s)
(including foreign currencies) 49,589,423 217,115,818
Balance with banks and other financial institutions 204,202,446 222,528,462
Money at call and short notice - -
254,534,374 439,890,903
Net Operating Cash Flow per share (year 2016: Restated) (7.29) (1.76)

Company Secretary Director Managing Director & CEO

Signed as per our annexed report of even date

Dated, Dhaka Malek Siddiqui Wali

February 01, 2018 Chartered Accountants

Annual Report 2017 53

 GSP FINANCE COMPANY (BANGLADESH) LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED DECEMBER 31, 2017

Attributable to equity holders of the company Non-

Particulars controlling
Paid up capital Capital Statutory Retained Total equity
(Tk.) Total (Tk.) interest
Reserve (Tk.) Reserve (Tk.) Earnings (Tk.) (Tk.)
(Tk.)
Balance as at January 01, 2016 1,046,326,950 251,402,124 261,781,412 185,442,160 1,744,952,645 22 1,744,952,667
Issue of share Capital - -
Net profit after tax for the year 2016 300,761,882 300,761,882 1 300,761,883
Transferred to statutory reserve - - 57,250,422 (57,250,422) - - -
Transferred to provision for Tax - - - -
Cash dividend paid (2015) - - (162,180,677) (162,180,677) - (162,180,677)
Revaluation of properties 665,287,500 - 665,287,500.00 - 665,287,500
Balance as at 31st December 2016 1,046,326,950 916,689,624 319,031,834 266,772,943 2,548,821,351 23 2,548,821,374
Changes in accounting policy - - - - - - -
Restated balance 1,046,326,950 916,689,624 319,031,834 266,772,943 2,548,821,351 23 2,548,821,374
Surplus/deficit on account of
revaluation of properties - - - - - -
Surplus/deficit on account of - - - - - -
revaluation of investment - - - - - - -
Issue of share Capital - - - - - 20 20
Cash dividend paid (2016) - - - (230,191,929) (230,191,929) - (230,191,929)
Net profit after tax for the year - - 322,152,988 322,152,988 2 322,152,990
Transferred to statutory reserve - - 61,419,870 (61,419,870) - - -
-
Balance as at 31st December 2017 1,046,326,950 916,689,624 380,451,704 297,314,132 2,640,782,410 45 2,640,782,455

The accompanying notes form an integral part of these financial statements.

Company Secretary Director Managing Director & CEO

Signed as per our annexed report of even date

Dated, Dhaka Malek Siddiqui Wali

February 01, 2018 Chartered Accountants

54 Annual Report 2017

 GSP FINANCE COMPANY (BANGLADESH) LIMITED
BALANCE SHEET
AS AT DECEMBER 31, 2017

Amount in Taka
Notes 2017 2016
PROPERTY AND ASSETS
Cash 3 50,329,086 217,317,635

In hand (including foreign currencies) 739,663 201,817

Balance with Bangladesh Bank and its agents bank(s)
49,589,423 217,115,818
(including foreign currencies )

Balance with other banks and financial institutions 4 201,309,479 220,689,484

In Bangladesh 201,309,479 220,689,484
Outside Bangladesh - -
Money at call and short notice 5 - -
Investments 6 309,186,018 245,856,625
Government - -
Others 309,186,018 245,856,625

8,070,564,486 6,137,622,987
Leases , loans and advances 7.1 8,070,564,486 6,137,622,987
Bills Purchased and discounted 8 - -
Fixed assets including premises, furniture and fixtures 9 965,286,368 970,750,871

Other assets 10 364,812,748 341,886,709

Non-business assets 11 - -

Total assets 9,961,488,185 8,134,124,311

LIABILITIES AND CAPITAL

Liabilities
Borrowings from banks ,other financial institutions and agents: 12 1,845,721,551 935,906,591

Deposits and other accounts 13 4,177,070,229 3,689,298,401

Current deposits - -
Bills payable - -
Savings deposits - -
Term deposits 4,177,070,229 3,689,298,401
Bearer certificate of deposit - -
Other deposits - -
Other liabilities 14 1,347,050,298 994,180,631
Total Liabilities 7,369,842,078 5,619,385,623
Capital / Shareholders' Equity 2,591,646,107 2,514,738,688
Paid up capital 15.2 1,046,326,950 1,046,326,950
Statutory reserve 16 380,451,704 319,031,834
Other reserve 17 916,689,624 916,689,624
Retained earnings:
Retained earnings balance 18 248,177,829 232,690,280
Total liabilities and Shareholders' equity 9,961,488,185 8,134,124,311

Annual Report 2017 55

 Amount in Taka
2017 2016
OFF-BALANCE SHEET ITEMS :
Contingent liabilities 18.1 - -
Acceptances and endorsements - -
Letter of guarantee - -
Irrevocable letter of credit - -
Bills for collection - -
Other contingent liabilities - -
-
Other commitments 18.2 - -
Documentary credits and short term trade and related transactions - -
Forward assets purchased and forward deposits placed - -
Undrawn note issuance and revolving underwriting facilities - -
Undrawn formal standby facilities, credit lines and other commitments - -
Others - -

Total off-balance sheet items including contingent liabilities - -

Net assets value (NAV) per share ( 2016 restated) 24.77 24.03

The accompanying notes form an integral part of these financial statements.

Company Secretary Director Managing Director & CEO

Signed as per our annexed report of even date

Dated, Dhaka Malek Siddiqui Wali

February 01, 2018 Chartered Accountants

56 Annual Report 2017

 GSP FINANCE COMPANY (BANGLADESH) LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED DECEMBER 31,2017

Amount in Taka
Notes 2017 2016

Interest income from leases,loans and advances 20 954,809,808 858,468,093

Interest expenses on borrowings, deposits,etc 21 (379,714,179) (311,603,594)
Net interest income 575,095,629 546,864,499
Investment income 22 32,871,196 12,499,651
Commission , exchange and brokerage 23 - -
Other operating income 24 50,889,602 51,133,569
Total operating income 658,856,427 610,497,719
Salary and allowances 25 38,325,934 34,475,667
Rent, taxes,insurance,electricity,etc. 26 1,463,505 1,508,866
Legal expenses 27 177,000 381,020
Postage,stamp,telecommunication,etc. 28 521,640 439,236
Stationery,printing,advertisements,etc. 29 1,773,994 1,827,566
Managing Director's salary and allowances 30 5,648,055 4,836,177
Directors' fees 31 984,000 776,000
Audit fees 32 195,500 90,000
Charges on loan losses - -
Depreciation and repairs of company's assets 33 6,086,998 8,146,398
Other operating expenses 34 10,383,844 11,217,958
Total operating expenses 65,560,469 63,698,887
Profit before provision 593,295,959 546,798,832
Provision for leases,loans and advances & investments 35 79,955,049 66,488,127
Other provision - -
Total provision 79,955,049 66,488,127
Total profit before income tax 513,340,910 480,310,705
Provision for income tax 36 206,241,562 194,058,596
Net profit after income tax 307,099,348 286,252,109
Retained earnings brought forward from previous year 232,690,280 165,869,270
Appropriations: 539,789,628 452,121,379
Statutory reserve 16 61,419,870 57,250,422
Cash dividend paid from Retained earnings for the year 2016 230,191,929 162,180,677
291,611,799 219,431,099
Retained earnings carried to the balance sheet 18 248,177,829 232,690,280
Earning per share (EPS) ( 2016 restated) 38 2.94 2.74

The accompanying notes form an integral part of these financial statements

Company Secretary Director Managing Director & CEO

Signed as per our annexed report of even date

Dated, Dhaka Malek Siddiqui Wali

February 01, 2018 Chartered Accountants

Annual Report 2017 57

 GSP FINANCE COMPANY (BANGLADESH) LIMITED
CASH FLOW STATEMENT
FOR THE YEAR ENDED DECEMBER 31,2017

Amount in Taka
2017 2016
Cash flows from operating activities:
Interest receipt in cash 948,159,521 847,089,561
Interest payment (365,762,304) (298,846,073)
Dividend receipts 7,394,064 10,158,670
Recoveries of loan previously written-off - -
Income taxes paid (8,189,351) (10,514,947)
Receipts from other operating activities 70,708,429 53,474,550
Payments for other operating activities (59,277,971) (55,614,844)
Cash generated from operating activities before
changes in operating assets and liabilities 593,032,388 545,746,917
Increase / decrease in operating assets and liabilities
Statutory deposit - -
Trading securities - -
Leases, loans and advances (1,932,941,499) (1,447,672,230)
Other assets (2,428,095) 25,902,555
Deposit and other accounts 487,771,828 734,930,231
Other liabilities on account of customers - -
Trading liabilities - -
Other liabilities 52,525,682 (25,214,650)
(1,395,072,084) (712,054,094)
Net cash used by operating activities (802,039,696) (166,307,177)

Cash flows from investing activities:

Proceeds from sale of securities 47,512,312 22,600,952
Payments for purchases of securities (110,841,705) (37,616,283)
Purchase of fixed assets (622,496) (2,013,533)
Proceeds from sale of fixed assets - -
Payment against lease obligation - -
Net cash used by investing activities (63,951,889) (17,028,864)

Cash flows from financing activities:

Receipts of borrowings from banks, other financial
institutions and agents 1,776,511,329 569,321,150
Repayment of borrowings from banks, other financial
institutions and agents (866,696,369) (451,931,906)
Dividend paid in cash (230,191,929) (162,180,677.00)
Net cash flow / used by financing activities 679,623,031 (44,791,433)

Net increase / (decrease) in cash and cash equivalents (186,368,554) (228,127,474)

Effects of exchange rate changes on cash and cash equivalents - -
Cash and cash equivalents at beginning of the year 438,007,119 666,134,593
Cash and cash equivalents at the end of the year 251,638,565 438,007,119

58 Annual Report 2017

 Amount in Taka
2017 2016
Cash and cash equivalents at the end of the year
cash in hand (including foreign currencies) 739,663 201,817
Balance with Bangladesh Bank and its agent bank(s)
(including foreign currencies) 49,589,423 217,115,818
Balance with banks and other financial institutions 201,309,479 220,689,484
Money at call and short notice - -
251,638,565 438,007,119
Net Operating Cash Flow per share (2016 restated) (7.67) (1.59)

Company Secretary Director Managing Director & CEO

Signed as per our annexed report of even date

Dated, Dhaka Malek Siddiqui Wali

February 01, 2018 Chartered Accountants

Annual Report 2017 59

 GSP FINANCE COMPANY (BANGLADESH) LIMITED
LIQUIDITY STATEMENT
(Analysis of maturity of assets and liabilities)
FOR THE YEAR ENDED DECEMBER 31, 2017

Particulars Up to 1 month 1-3 months 3-12 months 1-5 years Above 5 years Total
Taka Taka Taka Taka Taka Taka
Assets :
Cash in hand 739,663 - - - - 739,663
Balance with Bangladesh Bank and its agents 49,589,423 - - - - 49,589,423
Balance with banks and other financial institutions 81,309,479 54,000,000 66,000,000 - - 201,309,479
Money at call and short notice - - - - - -
Investments 186,134,168 - 120,482,400 - 2,569,450 309,186,018
Leases,loans and advances 633,764,311 1,373,178,017 1,088,944,148 4,974,678,010 - 8,070,564,486
Fixed assets including premises, furniture and fixtures - - 8,637,807 5,701,426 950,947,135 965,286,368
Other assets - - 69,986,004 44,826,764 249,999,980 364,812,748
Non-business assets - - - - - -
Total assets (A) 951,537,044 1,427,178,017 1,354,050,359 5,025,206,200 1,203,516,565 9,961,488,185

Liabilities :
Borrowings from banks, other financial institutions and agents 220,877,521 76,575,597 150,000,000 1,398,268,433 - 1,845,721,551
Deposits and other accounts 468,249,573 1,178,351,512 935,332,382 1,394,810,107 200,326,656 4,177,070,229
Provision and other liabilities - - - 1,347,050,298 - 1,347,050,298
Total liabilities (B) 689,127,094 1,254,927,109 1,085,332,382 4,140,128,838 200,326,656 7,369,842,078

Net liquidity gap (A - B) 262,409,950 172,250,909 268,717,977 885,077,362 1,003,189,909 2,591,646,107

Company Secretary Director Managing Director & CEO

Annual Report 2017

Signed as per our annexed report of even date

61
Dated, Dhaka Malek Siddiqui Wali
February 01, 2018 Chartered Accountants
 GSP FINANCE COMPANY (BANGLADESH) LIMITED
NOTES TO THE CONSOLIDATED AND THE SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2017

1.0 CORPORATE INFORMATION:

1.1 Legal Status
GSP Finance Company (Bangladesh) Limited is a Financial Institution (FI) incorporated in Bangladesh on October 29, 1995
as a Public Limited Company under the Companies Act, 1994. The Company offers lease finance of all types of plant,
machinery, equipment and vehicles both for industrial and commercial use. The Company received its certificate of
commencement of business on January 14, 1996 and its license on March 04, 1996 as required under Section 4(1) of the
Financial Institutions Act, 1993. The Company went into commercial operation on April 17, 1996. The Company was listed
with Chittagong and Dhaka Stock Exchanges on March 14, 2012 and March 28, 2012 respectively.

The registered office of the Company is situated at 1, Paribagh, Mymensingh Road, Dhaka-1000.

1.2 The Company also got a separate license from Bangladesh Securities and Exchange Commission on August 24,1999 for
working as a Merchant Bank. But pursuant to the requirement of Bangladesh Securities and Exchange Commission, GSP
Finance Company (Bangladesh) Limited formed a subsidiary in the name of "GSP Investments Limited" with a view to
separate its existing Merchant Banking operation which was approved by Bangladesh Securities and Exchange Commis-
sion vide their letter no. SEC/Reg./MB/SUB-16/2011/113 dated August 14, 2014. GSP Investments Limited is duly incorpo-
rated with the Registrar of Joint Stock Companies and Firms (RJSC) as a private limited company with authorised and paid
up capital are Tk. 50 crore and Tk.25 crore respectively.

The principal activities of GSP Investments Limited are:

Issue Management
Underwriting
Portfolio Management
Corporate Advisory Services
Securities Trading Services
Margin Loan

1.3 Nature of Business

The Company carries out the following types of business

Lease Financing
Term Finance
Acceptance of Term Deposits
Working Capital Finance
Syndication Finance
Money Market Operation

2.00 SIGNIFICANT ACCOUNTING POLICIES :

2.1 Basis of Accounting
These Financial Statements have been prepared under historical cost convention following accrual basis of accounting
and in compliance with the requirements of Companies Act 1994, Bangladesh Accounting Standards (BASs), Bangladesh
Financial Reporting Standards (BFRSs) and Financial Institution Act 1993.

2.1.1 Basis of consolidation of operation of subsidiary

The Financial Statements of the Company and its subsidiary have been consolidated in accordance with Bangladesh
Accounting Standards 27 " Consolidated and Separate Financial Statements". The consolidation of the financial statement
has been made after eliminating all material Inter Company balances, income and expenses arising from inter Company
transactions.

2.1.2 Statement of compliance

The consolidated financial statements and separate financial statements of the Company have been prepared on a going
concern basis following accrual basis of accounting except for cash flow statement and investment in marketable securi-
ties which are stated at market value in accordance with International Accounting Standards (IASs) and International
Financial Reporting Standards (IFRSs) as adopted in Bangladesh by the Institute of Chartered Accountants of Bangladesh

62 Annual Report 2017

 as Bangladesh Accounting Standards (BASs) and Bangladesh Financial Reporting Standards (BFRSs), except the circum-
stances where local regulations differ, and the Companies Act, 1994, the Financial Institutions Act, 1993, Securities and
Exchange Rules 1987, the Listing Regulations of Dhaka & Chittagong Stock Exchanges and other applicable laws and
regulations. The presentation of the financial statements has been made as per the requirements of DFIM Circular No: 11,
dated December 23, 2009 issued by the Department of Financial Institutions and Markets (DFIM) of Bangladesh Bank. The
activities and accounting heads mentioned in the prescribed form, which are not applicable for the financial institutions,
have been kept blank in the financial statements.
2.2 Separate Books of Accounts
The company maintains separate office and books of accounts for its subsidiary as required under the regulations of
Bangladesh Securities and Exchange Commission.
2.3 Investment in securities
Investment in marketable ordinary shares has been shown at cost or market price, whichever is lower, on an aggregate
portfolio basis. Investment in non-marketable shares has been valued at cost or intrinsic value whichever is lower. Full
provision for diminution in value of shares as on closing of the year on an aggregate portfolio basis is made in the financial
statements as required by Bangladesh Bank DFIM circular No. 02 dated January 31, 2012.
2.4 Borrowing Costs
Borrowing costs are recognized as expenses in the period in which those are incurred in accordance with benchmark
treatment of BAS 23.

2.5 Revenue Recognition

As per BAS 18, revenue is recognized when it is expected that the economic benefits associated with the transaction will
flow to Company and the amount of revenue and the cost incurred or to be incurred in respect of the transaction can be
measured reliably.
2.5.1 Lease Financing
Interest is recognized as and when it is accrued. Lease interest outstanding over 2 months are recognized as interest
suspense and not as revenue. Fee based income and delinquent charges from lease operations are accounted for on cash
basis.
2.5.2 Interest on Direct Finance
Interest on term finance is recognized when interest is accrued. No interest on loan is accounted for as revenue where any
portion of capital or interest is in arrear for more than 2 months. Fee based income and delinquent charges from loan
operations are accounted for on cash basis.

2.6 Accounting for Leases

Books of accounts for leasing operation has been prepared following the criteria of Bangladesh Accounting Standard 17
(BAS 17) under Financing Method since assets leased out to customers under lease agreements transfer substantially all
the risks and rewards associated with the ownership of the assets, other than legal title, to customers and all leases are
full payout leases.
In accordance with BAS 17 the aggregate lease receivables including the unguaranteed residual value throughout the
primary lease term are recorded as gross receivable while the excess of gross receivable over acquisition cost including
the interest during period of acquiring lease assets constitutes the unearned lease income.
The unearned income is recognized as revenue over the lease period generating a constant rate of return over lease
period.
2.7 Accounting for Direct Finance
Direct finance consisting of short term & long term finance are maintained based on the accrual method of accounting.
Outstanding amount of long term loans has been shown in the balance sheet as assets under the head of Direct finance.
Interest earnings are recognized as operational revenue.
2.8 Property and equipment
i) Recognition and measurement
Items of fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. The
cost of an asset comprises its purchase price and any directly attributable costs of bringing the assets to its working
condition for its intended use as per Bangladesh Accounting Standard (BAS) 16: “Property, Plant and Equipment”.
ii) Subsequent expenditure on fixed assets
Subsequent expenditure is capitalized only when it increases the future economic benefit from the assets and that cost
can be measured reliably. All other expenditures are recognized as an expense as and when they are incurred.

Annual Report 2017 63

2.9 Depreciation
Fixed Assets for Company's own use are depreciated at different ranges from 10% to 20% applying straight line
method throughout the estimated span of useful life ranging from five to ten years. Rate of depreciation is as follows:
Type of Assets Rate
Land & Land Development 0%
Office Building 10%
Furniture & Fixtures 10%
Telephone System 20%
Motor Vehicles 20%
Electrical Goods & Installation 20%
Office Equipment 20%
Generator & Installation 20%
House Property 10%
2.10 Provisions for Doubtful loss on Leases and Direct Finance
Provisions for classified and unclassified leases and direct finance receivables have been made as per guidelines of
Bangladesh Bank through FID circular no. 08 of 2002 , FID circular no.03 ,May 03 of 2006 and other directives as applica-
ble as follows:
1 to 2 Unclassified (SME) 0.25%
1 to 2 Unclassified 1%
3 to 5 SMA 5%
6 to 11 Sub-standard 20%
12 to 17 Doubtful 50%
18 and over Bad or Loss 100%

2.11 Employees Benefits Scheme

2.11.1 Defined Contribution Plan
2.11.1.1 Provident fund
The Company operates a contributory provident fund for its permanent employees. This is a funded one and duly
approved by NBR. Provident fund is administered by a Board of Trustees and is funded by contributions equally from the
employees and from the company at a predetermined rate. The fund is handled & invested separately by the Board of
Trustees.
2.11.1.2 Other long term benefits
The Company operates a group term life insurance scheme for all of its permanent employees. It maintains a health
insurance for hospitalisation of all of its permanent employees, which include their spouses.
2.11.2 Defined benefit Plan
2.11.2.1 Gratuity
The Company operates an unfunded gratuity scheme. Employees are entitled to gratuity benefit after completion of
minimum ten years continuous and uninterrupted service in the company. The gratuity payment is calculated on the
basis of Actuarial Report. The proposal for funding facilities of the gratuity fund is under consideration of NBR.
2.12 Corporate Tax
2.12.1 Current Tax
Provision for Taxation for the Company has been sufficiently kept and the company has sufficient fund to meet taxation
liabilities arising out of tax refunds of previous years.
2.12.2 Deferred Tax
The Company has conducted an exercise to find out deferred tax asset/(liability) based on temporary differences arising
from the carrying amount of an asset or (liability) in the balance sheet and its tax base . Accordingly deferred tax is
recognized as per BAS-12.
2.13 Trade Receivables
Trade receivables at the balance sheet date are stated at amounts which are considered realizable.
2.14 Payable and Accruals
Liabilities are recognized for the amounts to be paid in future for goods and services received.
2.15 Provisions
A provision is recognized in the Balance Sheet when the Company has a legal or constructive obligation as a result of
a past event, it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable
estimate can be made of the amount of the obligation.

64 Annual Report 2017

2.16 Statutory reserves
As per Financial Institutions Regulation 1994, every Non Banking Financial Institution (NBFI) is required to transfer at least
20% of its current year’s profit to the fund until such reserve fund equals to its paid up share capital and share premium (if
any). In conformity with the above requirement, GSPB transfers 20% of net profit to statutory reserve before declaration of
dividend.

2.17 General
Comparative Information
Comparative information has been disclosed in respect of the year 2016 for all numerical information in the Financial
Statements and also the narrative and descriptive information where it is relevant for understanding of the current year's
Financial Statements.
Previous year figures have been rearranged wherever considered necessary to conform to current year's presentation.

2.18 Renewal of FDR and interest thereon

FDR if not encashed on due date, is considered automatically renewed with interest earned upto maturity date and due
at the equivalent current rate of interest.

2.19 Rounding off

Monetary figures in the financial statements have been rounded off to the nearest Taka.

Amount in Taka
2017 2016
3.00 CASH
3.1 Cash in hand
In local currency 739,663 201,817
In foreign currency - -
739,663 201,817
3.1(a) Cash in hand (consolidated)
GSP Finance Company (Bangladesh) Limited 739,663 201,817
GSP Investments Limited 2,842 44,806
742,505 246,623
3.2 Balance with Bangladesh Bank and its agents Bank(s)
In local currency 49,589,423 217,115,818
In foreign currency - -
49,589,423 217,115,818
3.2(a) Balance with Bangladesh Bank and its agents Bank(s) (consolidated)
GSP Finance Company (Bangladesh) Limited 49,589,423 217,115,818
GSP Investments Limited - -
49,589,423 217,115,818
3.3 Cash Reserve Requirement (CRR) and Statutory Liquidity Reserve (SLR)
Cash Reserve Requirement @ 2.5% and Statutory Liquidity Reserve @ 5%
have been calculated and maintained in accordance with FID Circular # 02
and 06 dated 10 November 2004 and 31 May 2001 respectively.
a) Cash Reserve Requirement
Required Reserve (2.5% on term deposit ) 43,889,474 44,981,961
Actual Reserve maintained (note- 3.2 ) 49,589,423 217,115,818
Surplus / (deficit) 5,699,949 172,133,857
b) Statutory Liquidity Reserve
Required Reserve 128,646,053 118,298,910
Actual Reserve maintained (note-3.1, 3.2 and 4) 251,638,565 438,007,119
Surplus / (deficit) 122,992,512 319,708,209

Annual Report 2017 65

 Amount in Taka
2017 2016

4 Balance with banks and other financial institutions

In Bangladesh
Current accounts (note-4.1) - -
Short term deposit accounts (note-4.2) 81,309,479 144,895,022
Savings accounts (note-4.3) - -
Fixed deposit accounts (note-4.4) 120,000,000 75,794,462
201,309,479 220,689,484
Outside Bangladesh - -
- -
The company does not maintain any account outside of Bangladesh
4(a) Balance with banks and other financial institutions (consolidated)
GSP Finance Company (Bangladesh) Limited 201,309,479 220,689,484
GSP Investments Limited 2,892,967 1,838,978
204,202,446 222,528,462
4.1 Current account
- -
- -
4.2 Short term deposit account
BASIC Bank Ltd. 57,060,638 101,425,221
Commercial Bank of Ceylon Plc 693,443 687,846
Dutch Bangla Bank Ltd. 47,812 1,545,051
Mutual Trust Bank Ltd. 22,965,231 40,023,226
NCC Bank 12,858 15,820
Prime Bank Ltd. 199,012 10,001
Shahjalal Islami Bank Ltd 142,191 85,938
Southeast Bank Ltd. 98,588 -
Standard Bank Ltd. 25,794 26,348
The City Bank Ltd. 31,840 1,037,589
Uttara Bank Ltd 30,399 30,732
Woori Bank 1,675 7,250
81,309,479 144,895,022
4.3 Savings accounts
The company does not maintain any savings account
4.4 Fixed deposit accounts
BASIC Bank Ltd. - 6,000,000
Mutual Trust Bank Ltd. 4,000,000 4,000,000
Premier leasing & Finance Ltd. - 50,000,000
Shahjalal Islami Bank Ltd - 1,171,212
Standard Bank Ltd. - 9,623,250
The Farmers Bank Limited 10,000,000 5,000,000
The Farmers Bank Limited 100,000,000 -
Farest Finance & Investment Ltd. 6,000,000 -
120,000,000 75,794,462

4.5 Maturity grouping of balance with banks and other financial institutions
On demand 81,309,479 144,895,022
Up to 1 month 4,000,000 4,000,000
Over 1 month but not more than 3 months 50,000,000 50,000,000
Over 3 months but not more than 1 year 66,000,000 21,794,462
Over 1 year but not more than 5 years - -
Over 5 years - -
201,309,479 220,689,484

66 Annual Report 2017

 Amount in Taka
2017 2016

5 Money at call and short notice: - -

- -
5(a) Money at call and short notice (consolidated)
GSP Finance Company (Bangladesh) Limited - -
GSP Investments Limited - -
- -

6 Investments
Investment classified as per nature:
Government (note -6.1) - -
Others (note-6.2) 309,186,018 245,856,625
309,186,018 245,856,625

6(a) Investments (consolidated)

GSP Finance Company (Bangladesh) Limited 309,186,018 245,856,625
GSP Investments Limited 40,712,234 2,149,264
349,898,252 248,005,889
6.1 Government Securities:
Treasury bills - -
National investment bonds - -
Bangladesh Bank bills - -
Government notes / bonds - -
Prize bonds - -
Others - -
- -
6.2 Other investments:
Investment in shares (Annexure-A) 309,186,018 245,856,625
Debenture and bonds - -
Other investment - -
Gold etc. - -
309,186,018 245,856,625

6.3 Maturity grouping of investments:

On demand 186,134,168 142,804,775
Up to 1 month - -
Over 1 month but not more than 3 months - -
Over 3 months but not more than 1 year 120,482,400 100,482,400
Over 1 year but not more than 5 years - -
Over 5 years 2,569,450 2,569,450
309,186,018 245,856,625

6.4 Other investments:

Investment in quoted Shares 241,419,128 182,803,175
Investment in unquoted Shares 67,766,890 63,053,450
309,186,018 245,856,625

Annual Report 2017 67

 Amount in Taka
2017 2016
7 Leases, Loans and advances :

7.1 a) Inside Bangladesh

Leases (note -7.2) 1,325,592,683 677,464,545
Loans 6,744,971,803 5,460,158,442
Cash credits - -
Overdrafts - -
8,070,564,486 6,137,622,987

b) outside Bangladesh - -
8,070,564,486 6,137,622,987

7.1.1 Lease Finance

(As per paragraph 47 of BAS 17)
Principal Outstanding 1,000,244,692 382,439,589
Account receivable 324,815,979 295,024,956
Total 1,325,060,671 677,464,545

Principal Outstanding

Gross lease rental receivable 1,222,451,564 496,767,232

Unearned lease income 222,206,872 114,327,643
Total 1,000,244,692 382,439,589

7.2 Leases 1,325,060,671 676,932,533

Advances for leases (note -7.2.1) 532,012 532,012
1,325,592,683 677,464,545

7.2.1 Advance for leases

These represent disbursements made to clients for procuring assets under 532,012 532,012
lease and on execution advances are transferred to lease finance.
532,012 532,012

7.3 Sector wise leases, loans and advances

Public sector - -
Co-operative sector 465,558,440 312,348,919
Private sector 7,605,006,046 5,825,274,068
8,070,564,486 6,137,622,987

7.4 Residual maturity grouping of leases,loans and advances

On demand - -
Up to 1 month 633,764,311 445,591,429
Over 1 month but not more than 3 months 1,373,178,017 1,179,037,376
Over 3 months but not more than 1 year 1,088,944,148 926,781,071
Over 1 year but not more than 5 years 4,974,678,010 3,586,213,111
Over 5 years - -
8,070,564,486 6,137,622,987

68 Annual Report 2017

 Amount in Taka
2017 2016
7.5 Leases, loans and advances on the basis of significant concentration
a) Leases, loans and advances to Directors and organizations
related to Directors (fully secured) 25,907,275 31,724,725
b) Leases, loans and advances to Chief Executive Officer and 2,293,096 -
other senior executives - -
c) Leases, loans and advances to customers groups: - -
- -
i) Leases 1,300,811,023 648,608,033
ii) Loans 6,741,553,092 5,457,290,229
8,070,564,486 6,137,622,987
d) Leases, loans and advances on sector basis:
i) Textiles 290,212,434 91,623,005
ii) Garments and Accessories 499,167,922 207,812,463
iii) Transport (including Marin Transport) 515,220,811 235,302,299
iv) Chemicals and pharmaceuticals 364,177,546 223,769,003
v) Iron, Steel and Engineering 1,056,978,331 731,541,740
vi) Agricultural Equipments and Agro Industries 52,452,327 7,764,927
vii) Power and Energy 102,188,798 343,740,009
viii) Electronics and Electrical - -
ix) Information technology (IT) 172,168,010 186,899,362
x) Paper printing and Packaging 377,849,307 189,907,614
xi) Plastic - -
xii) Real Estate and Housing - -
xiii) Food and Beverage 77,415,548 399,413,563
xiv) Glass and Ceramics - -
xv) Services 1,373,520,209 749,585,000
xvi) Others 3,189,213,243 2,770,264,001
8,070,564,486 6,137,622,987

7.6 Leases, loans and advances on geographical basis:

Inside Bangladesh:
Urban :
Dhaka Division 7,900,439,738 5,984,558,580
Chittagong Division 170,124,748 153,064,407
Khulna Division - -
Rajshahi Division - -
Barisal Division - -
Sylhet Division - -
8,070,564,486 6,137,622,987
Rural :
Dhaka Division - -
Chittagong Division - -
Khulna Division - -
Rajshahi Division - -
Barisal Division - -
Sylhet Division - -
- -
Outside Bangladesh: - -
Total 8,070,564,486 6,137,622,987

Annual Report 2017 69

 Amount in Taka
2017 2016

7.7 Classification of Leases, loans and advances :

Unclassified :
Standard 6,412,185,886 5,491,691,521
Special mention account 969,396,219 198,359,804
7,381,582,105 5,690,051,325
Classified :
Sub-standard 197,282,783 113,781,001
Doubtful 112,863,943 28,593,134
Bad/Loss 378,835,655 305,197,527
688,982,381 447,571,662
Total 8,070,564,486 6,137,622,987
7.8 Net Leases ,loans and advances :
Total Leases , loans and advances (note- 7.1) 8,070,564,486 6,137,622,987
Less :
Non-performing leases, loans and advances (note-7.7) 688,982,381 447,571,662
Interest suspenses (note-14.5) 143,810,981 70,798,251
Provision for leases, loans and advances 334,211,640 254,256,591
1,167,005,002 772,626,504
6,903,559,484 5,364,996,483
7.9 Particulars of Leases, loans and advances:
a) Lease, loans and advances considered good and in respect
of which the financial institution is fully secured 4,375,053,008 3,388,581,651
b) Lease , loans and advances considered good against which - -
the financial institution holds no security other than the debtors - -
personal guarantee 2,350,955,435 1,854,175,904
c) Lease , loans and advances considered good secured by - -
personal undertaking of one or more parties in addition to - -
the personal guarantee of the debtors 1,344,556,043 894,865,432
d) Lease , loans and advances adversely classified : provision
not maintained there - -
e) Lease , loans and advances due by directors or officers of
the financial institution or any of them either separately or
jointly with any other person - -
f) Lease , loans and advances due from companies or firms in
which the directors of the financial institution have interest as
directors, partners,managing agents or in case of the private
companies , as members - -
g) Maximum total amount of leases , loans and advances
including temporary advances made in any time during
the year to the directors or managing directors or officers
of the financial institution or any of them either separately
or jointly with any other person - -
h) Maximum total amount of leases, loans and advances
including temporary advances granted during the year
to companies or firms in which the directors of the
financial institution have interest as directors, partners,
managing agents or in case of the private companies,
as members - -
i) Due from banks and other financial institutions - -
j) Classified leases , loans and advances:
i) Classified leases, loans and advances on which no interest
has been charged 688,982,381 447,571,662
ii) Provision on classified leases , loans and advances 222,207,650 147,961,540
iii) Provision kept against leases, loans and advances classified as bad debts 146,530,924 136,143,263
iv) Interest credited to interest suspense account (note-14.5) 143,810,981 70,798,251

70 Annual Report 2017

 Amount in Taka
2017 2016
k) Cumulative amount of written-off leases, loans and advances:
Opening balance - -
Amount written -off during the year - -
Amount realized against leases,loans and advances - -
The amount of written-off / classified leases, loans and advances
for which law suites has been filed - -

7.10 Suits filed by the Company :

As at 31 December 2017 , GSP Finance Company (Bangladesh) Limited filed 15

suits against 10 clients under Artha Rin Adalat Ain -2003, Total suit amount
was Tk. 47,78,92,608/-

7(a) Leases ,Loans and advances (consolidated)

GSP Finance Company (Bangladesh) Limited 8,070,564,486 6,137,622,987

GSP Investments Limited 1,884,458,437 1,736,889,149
9,955,022,923 7,874,512,136
Less: Inter company transaction 1,442,570,276 1,345,966,755
8,512,452,647 6,528,545,381

8 Bills purchased and discounted

Payable in Bangladesh - -
Payable outside Bangladesh - -
- -

8(a) Bills purchased and discounted (consolidated)

GSP Finance Company (Bangladesh) Limited - -

GSP Investments Limited - -
- -

9 Fixed assets including premises, furniture and fixtures:

Cost:
Opening Balance 1,041,252,495 373,951,462
Addition during the year 622,496 2,013,533
Revaluation surplus during the year - 665,287,500
1,041,874,991 1,041,252,495
Adjustment during the year - -
Closing Balance (A) 1,041,874,991 1,041,252,495

Less : Accumulated Depreciation :

Opening Balance 70,501,625 62,507,582
Charged during the year: 6,086,998 7,994,043
76,588,623 70,501,625
Adjustment during the year - -
Closing Balance (B) 76,588,623 70,501,625
Written Down Value (A-B) (Annexure -C ) 965,286,368 970,750,871

Annual Report 2017 71

 Amount in Taka
2017 2016
9(a) Fixed assets including premises, furniture and fixtures (consolidated)

GSP Finance Company (Bangladesh) Limited 965,286,368 970,750,871

GSP Investments Limited 3,808,090 4,699,969
Written Down Value (Annexure -B ) 969,094,458 975,450,840

10 Other assets
Corporate Tax paid in advance and Tax at source 47,844,922 39,655,571
Advance, Deposits and Prepayments 28,450 28,450
Sundry Debtors 66,939,415 52,202,708
Investment in Subsidiary : GSP Investments Limited 249,999,960 249,999,980
364,812,748 341,886,709
10(a) Other assets (consolidated)
GSP Finance Company (Bangladesh) Limited 364,812,748 341,886,709
GSP Investments Limited 767,591 800,516
365,580,339 342,687,225
Less: Inter company transaction 249,999,960 249,999,980
115,580,379 92,687,245

11 Non-business assets - -
- -
As at 31 December 2017, GSP Finance Company (Bangladesh) Limited
does not have any non-business assets.
12 Borrowings from banks ,other financial institutions and agents:

In Bangladesh (note-12.1) 1,845,721,551 935,906,591

Outside Bangladesh (note-12.2) - -
1,845,721,551 935,906,591

12.1 In Bangladesh
Call loan
Sonali Bank Ltd. 80,000,000 -
Janata Bank Ltd. 90,000,000 -
170,000,000 -

Term loan
AB Bank Ltd. - 50,000,000
Mutual Trust Bank Ltd 50,830,071 -
NCC Bank 359,577,158 47,958,233
Prime Bank Ltd. - 228,903,849
Southeast Bank Ltd. 277,846,546 122,051,584
Basic Bank Ltd. 279,558,832 -
Modhumoti Bank Ltd 138,766,018 -
Uttara Bank Ltd. 100,150,000 -
Woori Bank 150,000,000 150,000,000
Bangladesh Bank (IPFF fund) 318,992,926 336,992,925
1,675,721,551 935,906,591

12.2 Outside Bangladesh - -

- -

As at December 31, 2017 the Company does not have any borrowing from
outside of Bangladesh.

72 Annual Report 2017

 Amount in Taka
2017 2016
12.3 Analysis by Security against borrowing from banks,
other financial institutions and agents.
Secured 1,356,728,625 598,913,666
Unsecured 488,992,926 336,992,925
1,845,721,551 935,906,591

Borrowing from banks, other financial institutions and agents are secured
by floating charges with R.J.S.C on all moveable and immovable assets of
the Company ranking Pari-Passu security sharing agreement among the lenders.

12.4 Maturity grouping of borrowings from banks,other financial institutions and agents.
Repayable on demand 170,000,000 -
Up to 1 month 50,877,521 50,000,000
Over 1 month but not more than 3 months 76,575,597 58,743,164
Over 3 months but not more than 1 year 150,000,000 150,000,000
Over 1 year but not more than 5 years 1,398,268,433 677,163,427
Over 5 years - -
1,845,721,551 935,906,591

12(a) Borrowings from banks ,other financial institutions and agents (consolidated)

GSP Finance Company (Bangladesh) Limited 1,845,721,551 935,906,591

GSP Investments Limited 1,442,570,276 1,345,966,755
3,288,291,827 2,281,873,346
Less: Inter company transaction 1,442,570,276 1,345,966,755
1,845,721,551 935,906,591

13 Deposits and other accounts:

Current deposits (note-13.1) - -
Bills payable (note-13.2) - -
Savings deposits (note-13.3) - -
Term deposits ( note-13.4) 4,177,070,229 3,689,298,401
Bearer certificate of deposit ( note-13.5) - -
Other deposits ( note-13.6) - -
4,177,070,229 3,689,298,401

13.1 Current deposits - -

To confirm the Bangladesh Bank's guidelines regarding deposits,

the Company does not operate any current deposit account.

13.2 Bills payable - -

As at 31 December 2017 the company does not have any bills payable

13.3 Savings deposits - -

To conform with the Bangladesh Bank's guidelines regarding deposits,
the company does not operate any savings deposit account.

Annual Report 2017 73

 Amount in Taka
2017 2016

13.4 Term deposits

Deposits from banks and other financial institutions (note-13.4.1) 2,520,000,000 1,790,000,000
Deposits from customers (note-13.4.2) 1,657,070,229 1,899,298,401
4,177,070,229 3,689,298,401
13.4.1 Deposits from banks and other financial institutions
Agrani Bank Limited 200,000,000 200,000,000
AB Bank Ltd. - 50,000,000
Bangladesh Commerce Bank Ltd 400,000,000 200,000,000
Bangladesh Development Bank Ltd. 150,000,000 150,000,000
Eastern Bank Ltd 270,000,000 220,000,000
Janata Bank Ltd. 200,000,000 -
Mutual Trust Bank Ltd. - 100,000,000
Modhumoti Bank Limited 200,000,000 -
NRB Commercial Bank Ltd. - 270,000,000
NRB Bank Ltd. 170,000,000 -
National Housing Finance and Investments Ltd. 150,000,000 100,000,000
NCC Bank Limited. 80,000,000 -
Pubali Bank Ltd. 200,000,000 -
Sonali Bank Ltd 200,000,000 200,000,000
Social Islami Bank Ltd. - 200,000,000
Shahjalal Islami Islami Bank Ltd. 200,000,000 -
Standard Bank Ltd. 100,000,000 -
Trust Bank Ltd. - 100,000,000
2,520,000,000 1,790,000,000

13.4.2 Deposits from customers

Deposits from general public 893,431,496 850,575,546

Deposits from companies 763,638,733 1,048,722,855
1,657,070,229 1,899,298,401

13.5 Bearer certificate of deposit - -

To conform with the Bangladesh Bank's guidelines regarding deposits,

the company does not have any bearer certificate of deposit.

13.6 Other deposits - -

As at 31 December 2017 , the company does not have any other
deposit account.
13.7 Maturity grouping of deposits and other accounts:
Repayable on demand - -
Up to 1 month 468,249,573 770,191,074
Over 1 month but not more than 6 months 1,178,351,512 1,128,241,829
Over 6 months but not more than 1 year 935,332,382 672,035,724
Over 1 year but not more than 5 years 1,394,810,107 937,640,613
Over 5 years but not more than 10 years 200,326,656 181,189,161
Over 10 years - -
4,177,070,229 3,689,298,401

74 Annual Report 2017

 Amount in Taka
2017 2016
13(a) Deposits and other accounts (consolidated)

GSP Finance Company (Bangladesh) Limited 4,177,070,229 3,689,298,401

GSP Investments Limited - -
4,177,070,229 3,689,298,401

14 Other liabilities
Expenditure and other payable (note-14.1) 14,637,375 17,971,556
Provision for leases,loans and advances (note-14.2) 334,211,640 254,256,591
Provision for investment in share (note-14.3) - -
Provision for income tax (note-14.4) 822,821,627 616,580,065
Interest suspense account (note-14.5) 143,810,981 70,798,251
Advance rental / installment against leases, loans and advances 31,268,675 29,666,668
Provision for gratuity 300,000 4,907,500
1,347,050,298 994,180,631
14.1 Expenditure and other payable
Sundry Creditors - 4,434,527
Accrued interest on deposits 13,951,875 12,757,521
Audit Fee 195,500 90,000
VAT & Tax deducted at source 90,000 2,000
Security Deposit (Tenancy -BCDL) 400,000 400,000
Security Deposit (Tenancy- CBCL) - 287,508
14,637,375 17,971,556
14.2 Provision for leases,loans and advances
This represents the amount calculated as per circular issued by the Bangladesh
Bank in this regard to cover all the required provision of the company as at
31 December 2017. Total provision is made up as follows:
Movements in provision on classified leases,loans and advances (A)

Balance on 01 January 147,961,540 109,003,696

Provision made during the year 74,246,110 38,957,844
Balance at 31 December 222,207,650 147,961,540

Movements in provision on unclassified leases,loans and advances (B)

Balance at 01 January 106,295,051 56,339,631
Provision made during the year 5,708,939 49,955,420
Balance at 31 December 112,003,990 106,295,051
Total (A+B) 334,211,640 254,256,591

14.3 Provision for investment in shares

Balance at 01 January - 22,425,137
Provision made / (adjustment) during the year - (22,425,137)
Balance at 31 December (Annexure -A for detail) - -

14.4 Provision for income tax:

Balance at 01 January 616,580,065 452,715,085
Provision made during the year 206,241,562 194,058,596
822,821,627 646,773,681
Adjustment for the year - 30,193,616
Balance at 31 December 822,821,627 616,580,065
This is arrived as at under:

Annual Report 2017 75

 Year Opening balance Current tax provision Adjusted as per Closing balance
assessment/reversal

Year ended 2001 - 32,578,393 28,338,015 4,240,378

Year ended 2002 4,240,378 42,882,847 10,506,502 36,616,723
Year ended 2003 36,616,723 - 793,103 35,823,620
Year ended 2004 35,823,620 - - 35,823,620
Year ended 2005 35,823,620 - - 35,823,620
Year ended 2006 35,823,620 23,049,759 30,526,868 28,346,511
Year ended 2007 28,346,511 13,860,932 5,906,787 36,300,656
Year ended 2008 36,300,656 12,810,773 - 49,111,429
Year ended 2009 49,111,429 19,936,977 2,490,200 66,558,206
Year ended 2010 66,558,206 55,954,412 2,010,128 120,502,490
Year ended 2011 120,502,490 30,011,498 - 150,513,988
Year ended 2012 150,513,988 73,814,410 21,356,557 202,971,841
Year ended 2013 202,971,841 65,873,374 8,197,378 260,647,837
Year ended 2014 260,647,837 80,428,947 4,599,991 336,476,792
Year ended 2015 336,476,792 126,724,116 10,485,823 452,715,085
Year ended 2016 452,715,085 194,058,596 30,193,616 616,580,065
Year ended 2017 616,580,065 206,241,562 - 822,821,627
The company's tax assessment has been completed upto Assessment Year 2016-2017. Sufficient provision for taxation
has been made for the year.
14.5 Interest suspense account Amount in Taka
2017 2016
This represents interest on lease and loans income not recognized as income
according to Bangladesh Bank's FID circular # 03 of 2006. Details are as follows:

Balance at 01 January 70,798,251 62,271,667

Add: Amount transferred to interest suspense account during the year 81,888,813 51,793,643
Less: Amount recovered from interest suspense account during the year (8,876,083) (43,267,059)
Balance at 31 December 143,810,981 70,798,251

14.5.1 Details of interest suspense account

Interest suspense for unclassified leases , loans and advances (A)
Standard - 13,159,626
Special mention account 26,743,885 8,724,317
26,743,885 21,883,943
Interest suspense for classified leases , loans and advances (B)
Sub - standard 19,016,822 13,956,791
Doubtful 14,125,366 4,292,638
Bad/Loss 83,924,908 30,664,879
117,067,096 48,914,308
Total (A+B) 143,810,981 70,798,251
14(a) Other liabilities (consolidated)
GSP Finance Company (Bangladesh) Limited 1,347,050,298 994,180,631
GSP Investments Limited 190,935,577 116,373,261
1,537,985,875 1,110,553,892
Less: Inter company transaction - -
1,537,985,875 1,110,553,892

15 Share Capital:
15.1 Authorized capital
200,000,000 Ordinary shares of Tk. 10 each 2,000,000,000 2,000,000,000
15.2 Issued, Subscribed & Paid up Capital :
104,632,695 Ordinary shares of Tk.10 each 1,046,326,950 1,046,326,950
% of share
holding 2017
Domestic Shareholding Position 75.61% 791,151,620 819,793,280
Foreign Shareholding Position 24.39% 255,175,330 226,533,670
100.00% 1,046,326,950 1,046,326,950

76 Annual Report 2017

15.3 Raising of share capital
GSP Finance Company (Bangladesh) Limited raised its share capital as follows:

Year Type of issue of No. of shares Value of shares Cumulative

paid up capital paid up capital
1995 Opening capital 22,505 2,250,500 2,250,500
1995 Allotment 25,000 2,500,000 4,750,500
1996 Allotment 1,429,177 142,917,700 147,668,200
1997 Allotment 23,318 2,331,800 150,000,000
2000 Allotment 100,000 10,000,000 160,000,000
2001 Allotment 100,000 10,000,000 170,000,000
2005 Bonus 170,000 17,000,000 187,000,000
2007 Bonus 187,000 18,700,000 205,700,000
2008 Bonus 102,850 10,285,000 215,985,000
2010 Bonus 6,047,580 60,475,800 276,460,800
2012 Allotment (IPO) 20,000,000 200,000,000 476,460,800
2012 Bonus 4,764,608 47,646,080 524,106,880
2013 Bonus 7,861,603 78,616,030 602,722,910
2014 Bonus 7,232,675 72,326,740 675,049,650
2015 Bonus 37,127,730 371,277,300 1,046,326,950

15.4 Holding of shares as on 31 December 2017 classified by number of shares as follows:

Number of Number of Holding Position

Range of share Quantity Amount Tk.
Shares Holders in %
Less than 500 shares 314,825 2164 0.30% 3,148,250
501 to 5000 shares 5,685,297 3725 5.44% 56,852,970
5001 to 10000 shares 3,026,981 390 2.89% 30,269,810
10001 to 20000 shares 3,835,192 259 3.67% 38,351,920
20001 to 30000 shares 2,002,092 80 1.91% 20,020,920
30001 to 40000 shares 1,295,249 36 1.24% 12,952,490
40001 to 50000 shares 1,400,585 30 1.34% 14,005,850
50001 to 100000 shares 3,581,286 49 3.42% 35,812,860
100001 to1000000 shares 10,173,836 39 9.72% 101,738,360
Above 1000000 shares 73,317,352 14 70.07% 733,173,520
Total 104,632,695 6786 100% 1,046,326,950

15.5 Capital adequacy requirement

As per Clause 4(Gha) of The Financial Institutions Regulations 1994 and Bangladesh Bank's Amount in Taka
circulars in this regard, status of the company's capital adequacy is as under: 2017 2016
A. Eligible Capital :
1.Tier-1 Capital 1,674,956,483 1,598,049,065
2.Tier-2 Capital 576,348,802 564,639,863
3.Total Eligible Capital (1+2) 2,251,305,285 1,675,669,535
B. Total Risk Weighted Assets (RWA) 13,322,272,677 10,496,835,432
C. Capital Adequacy Ratio (CAR) (A3/B)*100 16.90 20.60
D. Core Capital to RWA (A1/B)*100 12.57 15.22
E. Supplementary Capital to RWA (A2/B)*100 4.33 5.38
F. Minimum Capital Requirement Based on Risk Weighted Assets (10% of B) 1,332,227,268 1,049,683,543
Surplus/(Deficit) (A3-F) 919,078,018 1,113,005,384

Surplus/(Deficit) (as per DFIM Circular No.-5 dated 24 July 2011 46,326,950 46,326,950
and Circular No.-9 dated 04 November 2009)
Tier-1 (Core Capital):
Paid up Capital 1,046,326,950 1,046,326,950
Statutory Reserve 380,451,704 319,031,834
Share Premium - -
Non-Controlling interest - -
Retained Earnings 248,177,829 232,690,280
1,674,956,483 1,598,049,065

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 Amount in Taka
2017 2016
Tier-2 (Supplementary Capital):
General Provision (Unclassified loans upto specified limit+SMA+off
Balance Sheet Exposure) 118,003,990 106,295,051
Assets Revaluation Reserve upto 50% 458,344,812 458,344,812
576,348,802 564,639,863
Risk Weighted Assets (RWA)
A. Credit Risk
On-Balance Sheet 11,388,592,379 8,926,389,014
Off-Balance Sheet - -
B. Market Risk 550,133,798 388,110,112
C. Operational Risk 1,383,546,500 1,182,336,306
13,322,272,677 10,496,835,432
15.5.1 Capital adequacy requirement (Consolidated)
As per Clause 4(Gha) of The Financial Institutions Regulations 1994 and Bangladesh
Bank's circulars in this regard, status of the company's capital adequacy is as under:
A. Eligible Capital :
1.Tier-1 Capital 1,724,092,831 1,632,131,750
2.Tier-2 Capital 604,629,528 538,109,557
3.Total Eligible Capital (1+2) 2,328,722,359 2,170,241,307
B. Total Risk Weighted Assets (RWA) 13,792,612,333 8,071,162,557
C. Capital Adequacy Ratio (CAR) (A3/B)*100 16.88 26.89
D. Core Capital to RWA (A1/B)*100 12.50 20.22
E. Supplementary Capital to RWA (A2/B)*100 4.38 6.67
F. Minimum Capital Requirement Based on Risk Weighted Assets (10% of B) 1,379,261,233 807,116,256
Surplus/(Deficit) (A3-F) 949,461,125 1,363,125,051

Surplus/(Deficit) (as per DFIM Circular No.-5 dated 24 July 2011 46,326,950 46,326,950
and Circular No.-9 dated 04 November 2009)
Tier-1 (Core Capital)
Paid up Capital 1,046,326,950 1,046,326,950
Statutory Reserve 380,451,704 319,031,834
Share Premium - -
Non-Controlling interest 45 23
Retained Earnings 297,314,132 266,772,943
1,724,092,831 1,632,131,750

Tier-2 (Supplementary Capital)

General Provision (Unclassified loans upto specified limit+SMA+off
Balance Sheet Exposure) 146,284,716 79,764,745
Assets Revaluation Reserve upto 50% 458,344,812 458,344,812
604,629,528 538,109,557
Risk Weighted Assets (RWA)
A. Credit Risk
On-Balance Sheet 11,702,780,887 6,643,127,447
Off-Balance Sheet - -
B. Market Risk 617,451,784 420,608,104
C. Operational Risk 1,472,379,662 1,007,427,006
13,792,612,333 8,071,162,557

78 Annual Report 2017

 Amount in Taka
2017 2016
16 Statutory reserve

Balance at 01 January 319,031,834 261,781,412

Add: Transferred during the year 61,419,870 57,250,422
Balance at 31 December 380,451,704 319,031,834
17 Other Reserve:
Capital Reserve/ Revalution Reserve :
Balance at 01 January 251,402,124 251,402,124
Add: Addition during the year 665,287,500 665,287,500
Balance at 31 December 916,689,624 916,689,624

18 Retained earnings
Balance at 01 January 232,690,280 165,869,270
Less: Cash dividend paid for the year 2016 (230,191,929) (162,180,677)
Add: Net profit for the year 2017 307,099,348 286,252,109
309,597,699 289,940,702
Less: Transfer to statutory reserve (61,419,870) (57,250,422)
Balance at 31 December 248,177,829 232,690,280
Apportionment:
Retained earnings balance 248,177,829 232,690,280
248,177,829 232,690,280
18(a) Retained earnings (consolidated)

GSP Finance Company (Bangladesh) Limited 248,177,829 232,690,280

GSP Investments Limited (Note 18aa) 49,136,303 34,082,663
297,314,132 266,772,943
18(aa) Retained earnings of subsidiary

Balance at 01 January 34,082,663 19,572,890

Add: Net profit for the year 15,053,640 14,509,773
49,136,303 34,082,663

18.1 Contingent liabilities

Acceptances and endorsements - -
Letter of guarantee (18.1.1) - -
Irrevocable letter of credit - -
Bills for collection - -
Other contingent liabilities - -
- -
18.1.1 Letter of guarantee
Claims lodged with the company which is not recognized as loan - -
Money for which the company is contingently liable in respect of the following: - -
Directors - -
Government - -
Banks and other financial institutions - -
others - -
- -
18.2 Other commitments
Documentary credits and short term trade and related transactions - -
Forward assets purchased and forward deposits placed - -
Undrawn note issuance and revolving underwriting facilities - -
Undrawn formal standby facilities, credit lines and other commitments - -
Others - -
As at 31 December 2017, the Company does not have any liabilities ,
which was not shown in the accounts.

Annual Report 2017 79

 Amount in Taka
2017 2016
19 Income statement
Income :
Interest, discount and similar income (note-19.1) 987,681,004 870,967,744
Dividend income - -
Commission, exchange and brokerage (note-23) - -
Gains less losses arising from dealing in securities - -
Gains less losses arising from dealing in foreign currencies - -
Other operating income (note-24) 50,889,602 51,133,569
Profit less losses on interest rate changes - -
1,038,570,606 922,101,313
Expenses:
Interest expenses on deposits,borrowings,etc. (note-21) 379,714,179 311,603,594
Charges on losses regarding leases, loans and advances - -
Administrative expenses (note-19.2) 49,089,628 44,334,532
Other operating expenses (note-34) 10,383,844 11,217,958
Depreciation and repair of company's fixed assets (note-33) 6,086,998 8,146,398
445,274,649 375,302,482
Surplus of income over expenditure 593,295,958 546,798,832
19(a) Income statement (Consolidated)
Income :
Interest, discount and similar income 1,073,219,703 942,027,933
Dividend income - -
Commission, exchange and brokerage 10,686,372 10,146,167
Gains less losses arising from dealing in securities - -
Gains less losses arising from dealing in foreign currencies - -
Other operating income 50,974,248 51,216,830
Profit less losses on interest rate changes - -
1,134,880,323 1,003,390,930
Expenses:
Interest expenses on deposits,borrowings,etc. 379,714,179 312,281,774
Charges on losses regarding leases, loans and advances - -
Administrative expenses 55,426,750 49,617,406
Other operating expenses 11,453,842 12,192,302
Depreciation and repair of company's fixed assets 6,998,117 8,742,150
453,592,887 382,833,632
Surplus of income over expenditure 681,287,436 620,557,298
19.1 Interest, discount and similar income
Interest income on leases,loans and advances (note-20) 954,809,808 858,468,093
Investment income (note-22) 32,871,196 12,499,651
987,681,004 870,967,744
19.2 Administrative expenses
Salary and allowances (note-25) 38,325,934 34,475,667
Rent, taxes, insurance, electricity, etc. (note-26) 1,463,505 1,508,866
Legal expenses (note-27) 177,000 381,020
Postage,stamp,telecommunication etc. (note-28) 521,640 439,236
Stationery,printing,advertisement etc. (note-29) 1,773,994 1,827,566
Managing Director's salary and allowances (note-30) 5,648,055 4,836,177
Directors' fees (note-31) 984,000 776,000
Audit fees (note-32) 195,500 90,000
49,089,628 44,334,532

20 Interest income on leases,loans and advances:

Lease income 143,376,619 122,449,490
Interest on loans 811,217,937 735,503,472
Interest during grace period - -
Total interest income on leases,loans and advances 954,594,556 857,952,962
Interest on balance with banks and other financial institutions 215,252 515,131
954,809,808 858,468,093

80 Annual Report 2017

 Amount in Taka
2017 2016

20(a) Interest income on leases,loans and advances (consolidated)

GSP Finance Company (Bangladesh) Limited 954,809,808 858,468,093
GSP Investments Limited 282,450,083 246,566,606
1,237,259,891 1,105,034,699
Less: Inter company transaction 207,071,909 183,134,728
1,030,187,982 921,899,971

21 Interest expenses on deposits,borrowings,etc.:

a) Interest expenses on borrowings :
Interest on term loans 80,200,889 80,065,188
Interest on call loans 11,344,792 8,867,542
Interest on Bank over draft 1,240,889 907,860
Bank charges 671,914 419,977
93,458,483 90,260,567
b) Interest expenses on deposits : 286,255,695 221,343,027
Total 379,714,179 311,603,594

21(a) Interest expenses on deposits,borrowings,etc. (consolidated)

GSP Finance Company (Bangladesh) Limited 379,714,179 311,603,594
GSP Investments Limited 207,071,909 183,812,908
586,786,088 495,416,502
Less: Inter company transaction 207,071,909 183,134,728
379,714,179 312,281,774

22 Investment income:
Dividend on Share 7,394,064 10,158,670
Profit on Share Trading 25,477,132 2,340,981
32,871,196 12,499,651
22(a) Investment income (consolidated)

GSP Finance Company (Bangladesh) Limited 32,871,196 12,499,651

GSP Investments Limited 10,160,525 7,628,311
43,031,721 20,127,962

23 Commission , exchange and brokerage

Commission , exchange and brokerage - -
- -
23(a) Commission , exchange and brokerage (consolidated)
GSP Finance Company (Bangladesh) Limited - -
GSP Investments Limited 10,686,372 10,146,167
10,686,372 10,146,167
24 Other operating income:
Income from FDR 6,293,991 3,279,266
Documentation charge 2,313,896 1,871,529
Late payment income 35,388,537 39,971,606
Service charge 5,347,528 2,871,778
Transfer price on lease finance 5,000 677,000
Processing fees 949,750 109,000
Income from house property 552,000 2,032,000
Interest on call loan 37,500 142,014
Miscellaneous earnings 1,400 179,376
50,889,602 51,133,569

Annual Report 2017 81

 Amount in Taka
2017 2016
24(a) Other operating income (consolidated)

GSP Finance Company (Bangladesh) Limited 50,889,602 51,133,569

GSP Investments Limited 84,646 83,261
50,974,248 51,216,830

25 Salary and allowances:

Basic pay and allowances 33,562,202 30,098,595
Bonus (note-25.1) 3,009,183 2,267,258
Company's contribution to provident fund 1,034,549 909,814
Retirement benefit and gratuity 720,000 1,200,000
38,325,934 34,475,667
25.1 Bonus
Festival 3,009,183 2,267,258
Performance - -
3,009,183 2,267,258

25(a) Salary and allowances(consolidated)

GSP Finance Company (Bangladesh) Limited 38,325,934 34,475,667

GSP Investments Limited 6,054,193 5,183,012
44,380,127 39,658,679

26 Rent, taxes, insurance, electricity, etc.:

Rent, rate and taxes 23,652 23,652
Insurance 422,503 459,157
Power and electricity 1,017,350 1,026,057
1,463,505 1,508,866
26(a) Rent, taxes, insurance, electricity, etc.(consolidated)

GSP Finance Company (Bangladesh) Limited 1,463,505 1,508,866

GSP Investments Limited - -
1,463,505 1,508,866

27 Legal expenses :
Legal expenses 177,000 381,020
177,000 381,020
27(a) Legal expenses (consolidated)

GSP Finance Company (Bangladesh) Limited 177,000 381,020

GSP Investments Limited - -
177,000 381,020

28 Postage,stamp,telecommunication etc.:
Postage and courier 67,177 84,830
Telephone, fax, internet and mobile 318,025 244,962
Stamp and court fee 136,438 109,444
521,640 439,236
28(a) Postage,stamp,telecommunication etc.(consolidated)

GSP Finance Company (Bangladesh) Limited 521,640 439,236

GSP Investments Limited 1,496 3,232
523,136 442,468

82 Annual Report 2017

 Amount in Taka
2017 2016
29 Stationery, printing, advertisement, etc.:
Printing and stationery 591,908 548,908
Advertisement and publicity 1,182,086 1,278,658
1,773,994 1,827,566
29(a) Stationery, printing, advertisement, etc.(consolidated)

GSP Finance Company (Bangladesh) Limited 1,773,994 1,827,566

GSP Investments Limited 75,433 61,631
1,849,427 1,889,197

30 Managing Director's salary and allowances :

Remuneration 5,076,000 4,800,834
Other benefits 572,055 35,343
5,648,055 4,836,177

30(a) Managing Director's salary and allowances (consolidated)

GSP Finance Company (Bangladesh) Limited 5,648,055 4,836,177

GSP Investments Limited - -
5,648,055 4,836,177

31 Directors' fees :
Directors fees 984,000 776,000
984,000 776,000
Other benefits - -
984,000 776,000

31(a) Directors' fees (consolidated)

GSP Finance Company (Bangladesh) Limited 984,000 776,000

GSP Investments Limited 183,000 15,000
1,167,000 791,000

32 Audit fees: 195,500 90,000

195,500 90,000
32(a) Audit fees (consolidated)
GSP Finance Company (Bangladesh) Limited 195,500 90,000
GSP Investments Limited 23,000 20,000
218,500 110,000
33 Depreciation and repairs of company's assets:
Depreciation on company's fixed assets (Annexure-C) 6,086,998 7,994,043
Repairs of companies fixed assets - 152,355
6,086,998 8,146,398

33(a) Depreciation and repairs of company's assets (consolidated)

GSP Finance Company (Bangladesh) Limited 6,086,998 8,146,398

GSP Investments Limited 911,119 595,752
6,998,117 8,742,150

Annual Report 2017 83

 Amount in Taka
2017 2016

34 Other operating expenses:

Office maintenance expenses 2,693,232 2,858,641
Travelling and conveyances 699,091 550,850
Motor vehicle running expenses 1,017,130 1,107,648
Fees and subscriptions 1,642,160 1,735,975
Staff welfare expenses 295,929 327,276
Newspaper,books and periodicals 50,910 64,586
Staff training and education expenses 87,000 108,898
Entertainment expenses 719,051 658,061
Business promotion expenses 658,570 775,000
Commission on TDR 1,113,421 1,636,967
Annual General Meeting Expenses (34.1) 1,289,350 1,249,056
CSR Expenses (34.2) 118,000 145,000
10,383,844 11,217,958
34.1 Annual General Meeting Expenses
Rent for venue and Decoration 316,000 267,500
Printing of Annual Reports and data base 795,500 875,100
Publication of Notice 79,350 47,610
Others 98,500 58,846
1,289,350 1,249,056
34.2 CSR Expenses
Dhaka Metropolition Police 68,000 50,000
Bangladesh Coast Guard - 50,000
Razarbagh Police Head Quarters - 45,000
Society for Education of The Intellectually Disabled, Bangladesh 50,000 -
118,000 145,000

34(a) Other operating expenses(consolidated)

GSP Finance Company (Bangladesh) Limited 10,383,844 11,217,958

GSP Investments Limited 1,069,998 974,344
11,453,842 12,192,302

35 Provision for leases, loans and advances & investments:

Provision for classified leases, loans and advances 74,246,110 38,957,844

Provision for unclassified leases, loans and advances 5,708,939 49,955,420
Provision for Investment in Share - (22,425,137)
79,955,049 66,488,127
35(a) Provision for leases, loans and advances & investments (consolidated)

GSP Finance Company (Bangladesh) Limited 79,955,049 66,488,127

GSP Investments Limited 63,905,652 50,542,827
143,860,701 117,030,954

84 Annual Report 2017

 Amount in Taka
2017 2016
36 Provision for income tax:

Current tax (36.1) 205,336,364 192,124,282

Deferred tax (36.2) 905,198 1,934,314
206,241,562 194,058,596

36.1 Provisions for current tax has been made on the basis of the profit for the year
in accordance with the provisions of Income Tax Ordinance, 1984 and amendments
made thereto. The current tax rate for the Company is 40% on taxable income.

36.2 Deferred tax asset/(liabilities)

Deferred tax has been calculated based on deductible/(taxable) difference arising
due to difference in the carrying amount of the assets and its tax base in accordance
with the provision of Bangladesh Accounting Standard (BAS) 12 "Income Taxes".
Deferred tax asset/(liabilities) is arrived at as follows:

Carrying amount at Tax base (Taxable)/deductible

balance sheet temporary difference
Taka Taka Taka
Assets:
Fixed assets net off depreciation 965,286,368 940,032,278 (25,254,090)
Liabilities:
Employee gratuity 300,000 - 300,000
Total 965,586,368 940,032,278 (24,954,090)
Applicable tax rate 40.00%
Deferred tax asset/(liabilities) as on December 31, 2017 (9,981,636)
Deferred tax asset/(liabilities) as on December 31, 2016 (9,076,438)
Deferred tax income/(expenses) accounted for during the year (905,198)

36(a) Provision for income tax (consolidated)

GSP Finance Company (Bangladesh) Limited 206,241,562 194,058,596

GSP Investments Limited 9,032,185 8,705,865
215,273,747 202,764,461

37 Dividend :
Dividend in the form of bonus share @ 23.50% for the year 2017 has been proposed by
the Board of Directors in its 206th meeting held on 01 February, 2018.

38 Earning per share :

Earning per share (EPS) is calculated in accordance with Bangladesh Accounting
Standard No. 33. Earning per share has been calculated as follows:

Net profit after tax 307,099,348 286,252,109

Number of ordinary shares outstanding 104,632,695 104,632,695
Earning per share 2.94 2.74
Restated earning per share 2.94 2.74

Annual Report 2017 85

 Amount in Taka
2017 2016
38(a) Earning per share (Consolidated) :

Net profit after tax 322,152,988 300,761,883

Number of ordinary shares outstanding 104,632,695 104,632,695

Earning per share 3.08 2.87

Restated earning per share 3.08 2.87

No diluted EPS is required to be calculated for the year since there was no
scope of dilution of share during the year under review.

39 Related party disclosures :

The Company in normal course of business carried out a number of transactions
with other parties that fall within the definition of related party as per BAS
24:Related Party Disclosures.These related party loans/Leases were made at the
competitive terms including interest rates and collateral requirements, as those
offered to other customers of similar terms & conditions.

Name of the related party Relationship Nature of Transaction 2017 2016

Container & Terminal service Ltd Common Directors Loan/Lease 24,781,660 28,856,512
Mr. Saber Hossain Chowdhury Director Loan/Lease 1,125,615 2,868,213
25,907,275 31,724,725

40 Unacknowledged debt :
The Company had no claim against it, which has not been acknowledged as debt at the balance sheet date.

41 Number of employees :
The total number of full time employees of the Company and their remuneration above Tk.48,000/- per annum were 49.
There were no employees earning less than Tk. 48,000/- per year.

42 Number of Board meeting and remuneration for attending thereof :

Total number of 10 (Ten) Board of directors meetings were held during the year and directors remuneration for
attending the board meeting was paid as per Company Law and Bangladesh Bank guidelines. No director has
been paid any remuneration for any special service rendered.

43 Receivable from directors :

No amount is due from any of the directors of the Company.

44 Disclosure regarding branch :

As at December 31, 2017, the company has no branch in or outside of Bangladesh.

45 Disclosure of Executive Committee :

To conform with the Bangladesh Bank guidelines, the Board of Directors of GSP Finance Company (Bangladesh)
Limited constituted the Executive Committee of the Board comprising members from the Board and the committee
met 17 (Seventeen) times during the year 2017.

86 Annual Report 2017

46 Disclosure on Audit Committee:

46.1 Particulars of Audit Committee

According to the guidelines of Bangladesh Bank, the Board of Directors of GSP Finance Company (Bangladesh)
Limited constituted the Audit Committee of the Board. Details of the committee members are as follows:

Name Status in Status with

the company the committee

Col. M. Nurul Islam Psc (Retd.) Independent Director Chairman

Mr. Saber Hossain Chowdhury Director Member
Dr. ATM Shamsul Huda Independent Director Member
Mr. Mohamed Abdul Jalil Director Member
Mr. Moin U. Haider Director Member

46.2 Activities of the audit committee during the year.

In the year 2017 the Audit Committee carried out the following activities:
a) Reviewed the financial and other systems including internal control and its reporting procedure;
b) Reviewed the duties, responsibilities, functions, degree of independence, due diligence with due care, objectivity
and staffing of internal audit department;
c) Recommend to the Board regarding appointment of the external auditors and their terms of appointment;
d) Reviewed all the operational policies before being approved by the Board;
e) Reviewed the effectiveness and independence for the statutory auditors;
f) Reviewed along with the management, the quarterly and the half yearly financial statements before submission to
the Board for approval;
g) Reviewed along with the management, the annual financial statements before submission to the Board for approval;
h) Ensured Strict adherence and compliance of the Bangladesh Accounting Standards and recommended the best
accounting practices;
i) Reviewed the delinquent portfolio and provided suitable guidelines;

46.3 Effective internal control and security documentation of the Company:

Having assessed the internal financial controls, information system and reporting models, the committee is of the
opinion that:

a) Procedures followed by the management for internal control of the company's activities under the manual set by
the management in line with Bangladesh Bank's guidelines are satisfactory.
b) Company's assets are reasonably safeguarded and the financial position of the company is on sound footing.
c) Overdue and litigation position of the company as stated by the management presents a true and fair view.

47 Subsequent events :
No material events occurred after the balance sheet date, non disclosure of which could affect the ability of the
users of the financial statements to make proper evaluation and decisions.

Annual Report 2017 87

 Amount in Taka
2017 2016
48 Highlights on the overall activities :
Sl no. Particulars
1 Paid up capital 1,046,326,950 1,046,326,950
2 Total eligible capital (note - 15.5.A) 2,251,305,285 2,162,688,928
3 Capital surplus / (deficit) 46,326,950 46,326,950
4 Total assets 9,961,488,185 8,134,124,311
5 Total deposits 4,177,070,229 3,689,298,401
6 Total leases, loans and advances 8,070,564,486 6,137,622,987
7 Total contingent liabilities and commitments - -
8 Credit deposit ratio 1.93 1.66
Percentage of classified leases,loans and advances
9
against total leases,loans and advances 8.54 7.29
10 Profit after provisions and income tax 307,099,348 286,252,109
Leases,loans and advances classified
11
for the year ended 688,982,381 447,571,662
Provision kept against classified
12
leases,loans and advances 222,207,650 147,961,540
13 Provision surplus / (deficit) 4,135,898 2,867,960
14 Base Rate 11.37 11.67
15 Cost of fund 9.46 9.80
16 Interest earning assets 8,581,059,983 6,604,169,096
17 Non-interest earning assets 1,380,428,202 1,529,955,215
18 Return on assets (ROA) % 3.08 3.52
19 Return on investment (ROI) % 19.81 19.10
20 Income from investment 32,871,196 12,499,651
21 Earnings per share 2.94 2.74
22 Net Income per share 2.94 2.74
23 Price earnings ratio (times) 10.46 8.37

Company Secretary Director Managing Director & CEO

88 Annual Report 2017

GSP Investments Limited
(A wholly owned subsidiary of GSP Finance Company (Bangladesh) Limited)
Director's Report to the Shareholders

The Directors have the pleasure in presenting their Report with the audited financial statements of the company for the
year ended December 31, 2017 together with the Auditor’s Report and other matters in compliance with The Companies
Act 1994.

GSP Investments Limited was incorporated with the Registrar of Joint Stock Companies & Firms (RJSC) as a Private
Limited Company on December 02, 2010 under the Companies Act, 1994 with a view to separate Merchant Banking
operation of GSP Finance Company (Bangladesh) Limited. The authorized and paid up capital of the company are Tk. 500
million and Tk. 250 million respectively. It is a wholly owned subsidiary of GSP Finance Company (Bangladesh) Limited
which was approved by Bangladesh Securities and Exchange Commission vide their letter no.
SEC/Reg./MB/SUB-16/2011/113 dated August 14, 2014. GSP Investments Limited took over all business, operations and
services of the Merchant Banking Unit of GSP Finance Company (Bangladesh) Limited on receipt of approval from
Bangladesh Securities and Exchange Commission (BSEC).

The principal activities of GSP Investments Limited are:

Issue management,
Underwriting,
Portfolio management,
Margin loan
Advisory services on securities
Private Placement

GSP Investments Limited provides a high standard of professional services to its local and NRB clients. It has proven track
record of serving clients of their total needs, by maintaining strict compliance with regulations of BSEC, DSE, CSE and
other authorized government agencies.

Portfolio Management
GSP Investments Limited offers the following Portfolio Management Services:

Non-Discretionary Portfolio Management / Margin lending: GSP Investments Limited offers margin loan to portfolio
investors following BSEC and our internal policies. Besides facilitating trading on shares (executed at clients
direction), GSPI collects dividends, subscribe to rights offers and ensure that clients entitlements are well protected
arising out of different corporate actions. GSPI’s professional research team prepare list of marginable securities
and updates it regularly for correct investment decisions.

Discretionary Portfolio Management: GSPI’S experienced team of fund managers manage portfolios on behalf of the
clients, both individuals and institutions following a disciplined investment process and structured approach to build
the portfolio which is tailored to specific needs of the clients.

Annual Report 2017 89

 DIRECTORS' REPORT

Equity Research
 Company Coverage –Research coverage on listed companies and newly listed companies;
 Industries Coverage-Research coverage on industries;
 Economic Coverage-
 National Budget Review
 Monetary policy statement Review
 Economic Review etc

 Price Determination under Book-Building Method;

Performance Highlights
Despite all the market vulnerabilities the Company earned profit before tax of TK. 24.09 million during January 01, 2017 to
December 31, 2017. During the year, market capitalization as well as turnover witnessed slight gains impacting our
management fees, transaction and settlement fees, positively.

Human Resource Development

GSP Investments Limited continues to develop and implement proper human resource policies to motivate and improve
the quality of employees and ensure their optimum contribution towards the achievement of the company goals. Adequate
training facilities are arranged for the employees to improve their knowledge and efficiency.

Future Outlook
 Emergence of capital raising opportunities as a new revenue source of the Company.
 Prospect of accumulation of strategic investments.
 Focus on sustaining our leadership position in investment banking.
 Positioning our research as top-notch and internationally benchmarked.
 Managing the downside risk of Margin Loan.

Distribution of Profit for 2017

The Company made a profit after provision and tax of TK. 15.05 million for the year 2017. The Board proposed not to pay
any dividend to the shareholders for the year 2017.

Appointment of Auditors
As per Companies Act of 1994 the Company shall at each Annual General Meeting, appoint an auditor to hold office until
the next annual general meeting. The auditors of the company, Malek Siddiqui Wali, Chartered Accountants has
completed their audit for the year 2017 and being eligible for re-appointment the Board of Directors of the company
recommended for re-appointment of Malek Siddiqui Wali, Chartered Accountants as Auditors of the company for the year
2018 at the same remuneration of Tk. 20,000/- plus VAT.

Feroz U. Haider
Chairman

90 Annual Report 2017

 CHARTERED ACCOUNTANTS

AUDITORS’ REPORT TO THE SHAREHOLDERS

OF
GSP Investments Limited.

We have audited the accompanying financial statements of GSP Investments Limited, which comprises of Balance Sheet as at 31
December 2017, related statement of Profit and Loss Account, Statement of Changes in Equity and Statement of Cash flow for the year
ended, and a summary of significant accounting policies and other explanatory notes

Management’s responsibility for the financial statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with Bangladesh
Accounting Standards (BASs) &Bangladesh Financial Reporting Standards (BFRSs), the Companies Act 1994 and other applicable laws and
regulations. This responsibility includes: designing, implementing, and maintaining internal control relevant to the preparation and fair
presentation of financial statement that are free from material misstatement, whether due to fraud or error; selecting and applying
appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Auditors’ Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with
Bangladesh Standards on Auditing (BSA). Those standards require that we comply with ethical requirements and plan and perform the
audit to obtain reasonable assurance 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 risk 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.

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 statement prepared in accordance with Bangladesh Accounting Standards (BASs) & Bangladesh Financial
Reporting Standards (BFRSs), give a true and fair view of the state of the company’s affairs as at 31 December, 2017 and of the results of
its operations for the period then ended and comply with the companies Act 1994 and other applicable laws and regulations.

Further to our opinion in the above paragraph, we state that

(i) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the
purpose of our audit and made due verification thereof;
(ii) in our opinion, proper books of accounts as required by law have been kept by the company, so far as it appeared from our
examination of those books;
(iii) Company’s Statement of financial position, statement of comprehensive Income, statement of cash flow and Statement of Changes
in Equity dealt with by the report are in agreement with the books of account and returns.
(iv) the expenditure incurred was for the purpose of the company’s business.

Dated, Dhaka Malek Siddiqui Wali

January 31, 2018 Chartered Accountants

Associated firm of Reddy Siddiqui & Kabani, Park View, 183-189 The Vale, London, W3 7RW, UK
E-mail: mail@reddysiddiqui.com, Website: www.reddysiddiqui.com

Annual Report 2017 91

 GSP INVESTMENTS LIMITED
BALANCE SHEET
AS AT DECEMBER 31, 2017

Amount in Taka
Dec. 31, 2017 Dec. 31, 2016
ASSETS
Non Current Assets: 3,808,090 4,699,969
Property, plant and equipments 3,808,090 4,699,969

Investment in Share 40,712,234 2,149,264

Current assets: 1,888,121,835 1,739,573,449
Margin loan to portfolio clients 1,884,458,437 1,736,889,149
Accounts Receivable 227,389 350,884
Advance Income Tax 540,200 449,632
Cash & cash equivalents 2,895,809 1,883,784

Total 1,932,642,159 1,746,422,682

EQUITY AND LIABILITIES

Shareholders equity: 299,136,306 284,082,665
Share Capital 250,000,000 250,000,000
Retained Earnings 49,136,306 34,082,665

Current Liabilities: 1,633,505,853 1,462,340,017

Borrowing from Banks & Financial Institutions 1,442,570,276 1,345,966,755
Portfolio investors' fund 5,306,664 3,280,654
Accounts payable 403,881 965,145
Provision for diminution in value of investments 2,217,931 -
Provision for Margin Loan 153,100,944 91,413,223
Provision for Income Tax 29,481,787 20,449,602
Other Liabilities 424,370 264,638

Total 1,932,642,159 1,746,422,682

Company Secretary Director CEO/Managing Director (C.C.)

Signed as per our annexed report of even date

Dated, Dhaka Malek Siddiqui Wali

January 31, 2018 Chartered Accountants

92 Annual Report 2017

 GSP INVESTMENTS LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED DECEMBER 31, 2017

Amount in Taka
2017 2016
OPERATING INCOME
Interest Income 282,450,083 246,566,606
Less: Interest expenses 207,071,909 183,812,908
Net Interest Income 75,378,174 62,753,698

Investment Income 10,160,525 7,628,311

Commission, exchange and brokerages 10,686,372 10,146,167
Other operating income 84,646 83,261
20,931,543 17,857,739
Total operating income (a) 96,309,717 80,611,438

OPERATING EXPENSES
Salary and allowances 6,054,193 5,183,012
Postage & stamps 1,496 3,232
Printing & Stationary 75,433 61,631
Directors' fees 183,000 15,000
Depreciation on property, plant and equipments 911,119 595,752
Other Operating expenses 1,092,998 994,344
Total operating expenses (b) 8,318,239 6,852,971
Profit before provision (c=a-b) 87,991,478 73,758,467
Provision for diminution in value of investments 2,217,931 -
Provision for Margin Loan 61,687,721 50,542,827
Total profit before tax 24,085,826 23,215,640
Provision for income tax 9,032,185 8,705,865
Net profit after tax 15,053,641 14,509,774
Other comprehensive income - -
15,053,641 14,509,774
Earning per share (EPS) 0.60 0.58

Company Secretary Director CEO/Managing Director (C.C.)

Signed as per our annexed report of even date

Dated, Dhaka Malek Siddiqui Wali

January 31, 2018 Chartered Accountants

Annual Report 2017 93

 GSP FINANCE COMPANY (BANGLADESH) LIMITED
INVESTMENT IN SHARES
AS AT 31 DECEMBER 2017
ANNEXURE - A

Sl. No. of Cost price Market Price Provision required

Name of the issuer company as at 31 Dec. as at 31 Dec. as at 31 Dec. 2017
No. Shares
2017 (Tk) 2017 (Tk.) (Tk.)
Investment in quoted shares:
1 Aamra Net Work 33,973 1,324,947 3,319,162 1,994,215
2 ACME Laboratories Ltd. 769,200 39,998,398 87,688,800 47,690,402
3 AFTABAUTO 694,400 50,390,408 44,580,480 (5,809,928)
4 BSRMLTD 17,600 2,008,208 1,738,880 (269,328)
5 BSRMSTEEL 86,385 8,343,813 6,781,223 (1,562,591)
6 DELTALIFE 28,475 3,207,898 3,063,910 (143,988)
7 DELTASPINN 253,673 2,096,480 2,384,526 288,046
8 Exim Bank Ltd. 50,000 911,456 860,000 (51,456)
9 First Security Islami Bank Ltd. 50,000 816,304 765,000 (51,304)
10 Grameen Phone 12,946 6,027,102 6,094,977 67,875
11 Glaxo Smith Cline 7,195 10,891,584 11,158,006 266,422
12 Heidelberg Cement Ltd. 58,360 27,783,136 24,797,164 (2,985,972)
13 KEYACOSMET 89,716 1,166,509 1,103,507 (63,002)

14 LAFARGE SURMA CEMENT 340,157 21,400,008 23,776,974 2,376,966

15 LANKABAFIN 27,838 1,340,852 1,330,656 (10,195)

16 METROSPIN 75,075 1,934,376 863,363 (1,071,013)

17 Nahee Aluminum Composite Panel Ltd 5,706 57,060 418,820 361,760

18 Oimex Electrode Ltd. 7,129 64,810 464,811 400,001
19 Olympic Industries 64,276 17,615,305 18,530,771 915,466
20 PLFSL 181,498 6,838,382 2,486,523 (4,351,860)
21 RAK Ceramics BD Ltd 11,185 654,995 669,982 14,986
22 SQUAR PHARMA 27,807 8,338,807 8,392,153 53,346
23 SUMITPOWER 611,035 25,980,458 21,936,157 (4,044,301)
24 Titas Gas Transmission & Distribution Ltd. 16,200 762,478 716,040 (46,438)
25 UNIONCAP 56,966 1,465,354 1,145,017 (320,337)
Investment in unquoted shares:
26 ADN Telecom Ltd. 700,000 10,500,000 10,500,000 -
27 CDBL 571,181 2,569,450 2,569,450 -
28 Energypac Power Generation Ltd. 1,192,800 49,984,000 49,984,000 -
29 Aman Cotton Febrious 31,384 1,255,360 1,255,360 -
30 Bashundhara Papers Mills Ltd. 43,226 3,458,080 3,458,080 -
Total 309,186,018 342,833,789 -

Cost Price
Investment in quoted shares 241,419,128
Investment in unquoted shares 67,766,890
Total: 309,186,018

94 Annual Report 2017

 GSP FINANCE COMPANY (BANGLADESH) LIMITED
SCHEDULE OF FIXED ASSETS (CONSOLIDATED)
AS AT 31 DECEMBER 2017 ANNEXURE - B

COST DEPRECIAT ION Written

SL Opening Addition Revaluation Adjustment Closing Rate Opening Charged Adjustment Closing Down
No. Particulars Balance on during during during Balance as on % Balance on during During Balance as on Value as on
01.01.17 the year the year the year 31.12.17 01.01.17 the year the year 31.12.17 31.12.17

1 Land & Land Development 953,437,500 - - - 953,437,500 - - - - - 953,437,500

2 Office Building 20,535,533 - - - 20,535,533 10 16,533,282 1,056,957 - 17,590,239 2,945,293
3 Office Equipment 21,779,732 629,568 - - 22,409,300 20 15,039,208 1,994,283 - 17,033,490 5,375,808
4 Furniture & Fixtures 8,697,989 9,068 - - 8,707,057 10 6,896,226 316,319 - 7,212,545 1,494,511
5 Software 1,340,000 - - - 1,340,000 20 1,001,600 67,680 - 1,069,280 270,720
6 Office Decoration 695,534 - - - 695,534 10 429,094 26,644 - 455,738 239,796
7 Telephone Systems 1,189,391 3,100 - - 1,192,491 20 1,048,925 58,069 - 1,106,994 85,497
8 Motor Vehicle 14,608,604 - - - 14,608,604 20 7,972,303 2,120,025 - 10,092,328 4,516,275
9 Electrical Goods & Installation 4,095,278 - - - 4,095,278 20 2,995,591 546,340 - 3,541,931 553,347
10 Generator & Installation 1,128,896 - - - 1,128,896 20 1,128,896 - 1,128,896 -
11 House Property 20,950,712 - - - 20,950,712 10 19,963,201 811,800 - 20,775,001 175,711
AS AT 31 DECEMBER 2017 1,048,459,168 641,736 - - 1,049,100,904 73,008,327 6,998,117 - 80,006,443 969,094,458

AS AT 31 DECEMBER 2016 378,108,509 5,063,158 665,287,500 - 1,048,459,168 64,418,532 8,589,795 - 73,008,327 975,450,840

Annual Report 2017

95
96
GSP FINANCE COMPANY (BANGLADESH) LIMITED
SCHEDULE OF FIXED ASSETS
AS AT 31 DECEMBER 2017 ANNEXURE - C

Annual Report 2017

COST DEPRECIAT ION Written
SL Opening Addition Revaluation Adjustment Closing Rate Opening Charged Adjustment Closing Down
No. Particulars Balance on during during during Balance as on % Balance on during During Balance as on Value as on
01.01.17 the year the year the year 31.12.17 01.01.17 the year the year 31.12.17 31.12.17

1 Land & Land Development 953,437,500 - - - 953,437,500 - - - - - 953,437,500

2 Office Building 20,535,533 - - - 20,535,533 10 16,533,282 1,056,957 - 17,590,239 2,945,294
3 Office Equipment 20,912,089 612,378 - - 21,524,467 20 14,472,772 1,931,828 - 16,404,600 5,119,867
4 Furniture & Fixtures 8,618,454 7,018 - - 8,625,472 10 6,861,999 311,702 - 7,173,701 1,451,771
5 Telephone Systems 1,189,391 3,100 - - 1,192,491 20 1,048,925 58,069 - 1,106,994 85,497
6 Motor Vehicle 10,384,646 - - - 10,384,646 20 7,496,960 1,370,302 - 8,867,262 1,517,384
7 Electrical Goods & Installation 4,095,278 - - - 4,095,278 20 2,995,591 546,340 - 3,541,931 553,347
8 Generator & Installation 1,128,896 - - - 1,128,896 20 1,128,896 - - 1,128,896 -
9 House Property 20,950,712 - - - 20,950,712 10 19,963,201 811,800 - 20,775,001 175,711

AS AT 31 DECEMBER 2017 1,041,252,496 622,496 - 1,041,874,991 70,501,625 6,086,998 - 76,588,625 965,286,368

AS AT 31 DECEMBER 2016 373,951,462 2,013,533 665,287,500 - 1,041,252,495 62,507,582 7,994,043 - 70,501,625 970,750,871
Shareholders' Note :
Shareholders' Note :
 1, Paribagh, Mymensingh Road,
GSP Finance Company (Bangladesh) Limited Dhaka-1000.

PROXY FORM
I/We……………………………………………………………………………...………………………………...

of……………………………………………………………………………………….………being a shareholder
of GSP Finance Company (Bangladesh) Limited do hereby appoint

Mr./Mrs………………………………………………………………………………………….………………....

of……………………………………………………………………………………………...…………….….......
(or failing his/her)

Mr./Mrs…………………………………………………………………………………………………….……....

of…………………………………………………………………………………………………..as my/our Proxy

to attend and vote on my/our behalf at the 23rd Annual General Meeting of the Company to be held on Wednesday,
March 14, 2018 at 11:30 a.m. at the Institution of Diploma Engineers, Bangladesh, IDEB Bhaban,160/A, Kakrail, Dhaka-1000
or at any adjournment thereof or any ballot to be taken in consequence thereof.

Signed this…………………….day of March, 2018

…………………………………………… ……………………………………
Signature of the proxy Signature of the shareholder(s)

BO ID No………………………………………… Revenue
Stamp of
No of shares being held…………………………... Tk. 20/=

Notes:
I). This Form of Proxy, duly completed must be deposited at least 48 hours before the meeting of the
Company’s Registered Office. Proxy is invalid if not signed and stamped as indicated above.
II). Signature of the Shareholder should agree with the specimen signature registered with the Company.

1, Paribagh, Mymensingh Road,

GSP Finance Company (Bangladesh) Limited Dhaka-1000.

ATTENDANCE SLIP
I/We hereby record my/our attendance at the 23rd Annual General Meeting of the Company to be held on Wednesday,
March 14, 2018 at 11:30 a.m. at the Institution of Diploma Engineers, Bangladesh, IDEB Bhaban, 160/A, Kakrail, Dhaka-1000.

Name of the shareholder(s) / Proxy (in Block Letters)…………………………………………………............................

BO ID No…………………………………………….......... No of shares being held………...…............................

…………………………………………………………... Date: ………………………….…............................

Signature of the shareholder(s)/proxy

N.B.: Shareholders attending the meeting in person or by proxy are requested to complete Attendance Slip and deposit
the same at the entrance of the meeting hall.
Members may please note that no gift or benefits in cash or kind shall be given at the AGM.