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TERM PAPER TERM PAPER

ON ON
LEASING COMPANY LEASING COMPANY
[IDLC] [IDLC]
SUBMITTED BY:
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Date of Submission: 17
th
May, 2012
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17
th
May, 2012
Professor
Department of Finance
Faculty of Business Studies
Subject: Submission of Report on n!estment function of leasing company"
Dear Sir#
$ere is t%e report you as&ed us to prepare as a re'uirement of fulfilling t%e course of
Financial (ar&ets ) nstitution". *%is report titled n!estment function of leasing
company" pro!ides different aspects t%at t%is analysis gi!es a clear and broad idea on
o!erall in!estment function of a leasing company of Banglades%.
+e would li&e to t%an& t%e $R( manager of D,- w%o co.operated wit% us w%ene!er
we !isited t%eir office for t%e report purpose.
+e t%an& you !ery muc% for gi!ing us t%e opportunity to ma&e t%e study at t%is topic
w%ic% added !alue to our learning cur!e. Any 'uery regarding t%e report will be
appreciated.
Sincerely#
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Acknowledgement
n t%e different steps of preparing t%is report# we t%an& our course teac%er for
pro!iding us proper guidelines to prepare t%e report. +e also t%an& %er for
assigning us suc% a practical report t%at %as boosted our &nowledge from different
aspects.
+e are also ac&nowledging $R( managers of D,- w%o co.operated wit% us
w%ene!er we !isited t%eir office for t%e report purpose.
+e are also ac&nowledging some of our senior brot%ers w%o %elped us by
pro!iding some suggestion about t%e formation of report.
+e are also grateful to our classmates from w%om we recei!ed cordial
guidance# suggestions for preparing t%is report.
At last we t%an& officer.in.c%arge at /mar.Sultan -omputer lab t%at pro!ided
us important tips in using !arious computer applications# software in preparing
t%is report.
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Executive Summary
*%ere can be !arious types of financial institution in an economy. Depository and non
depository are t%e common di!ides. Among non.depositories# t%ere are insurance
companies# leasing companies# in!estment ban& and companies and pension fund.
But our selected company D,- is a special type of company. t is a multi product
company wit% !arious wings. t pro!ides !arious types of financial ser!ices. t %as !ery
enric%ed leasing operation along wit% strong merc%ant ban&ing operation. Actually it is
not a suddenly establis%ed so called finance company. t %as strong commitment to meet
t%e demand for loanable fund and strengt%en t%e capital mar&et of t%e country.
*%at0s w%y we feel t%at stating its bac&ground is !ery important. After a brief
introduction we discuss about t%e bac&ground of t%e company. After a s%ort discussion
about its o!erall business acti!ities we directly go to our main concern# leasing and
merc%ant ban&ing acti!ities of D,-. *%ere we discuss about its !arious products# terms
and condition# contribution of t%is acti!ities to parents companies.
From our study we get some information t%at amused us. As a leading leasing company it
is easy to predict t%at it will be !ery successful. But as a merc%ant ban& it is playing a
!ery important role in building our economy. *%is a !ery important time for our capital
mar&et w%en most of t%e countries in t%e world is in recession. Strong merc%ant ban&ing
companies li&e D,- can %elp to o!ercome t%is situation.
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Table o !ontent"
Introduction #####################$$#$ %&' %(
!om)any Background #################$$$$$ %*' +,
Bu"ine"" Activity###################$$$#$$ +-' +.
!om)any Service" ###################$$$$$ /%' &&
,ease and *erm ,oan 111111111111111.1.. 23. 22
,ease finance 1111111111.1111111..... 24
Real 5state Finance 111111111111111.... 22
-ar ,oans 111111111111111111.1.. 22
-apital (ar&et Acti!ities 11111111111111.1. 26. 66
ssue (anagement ) ot%er Acti!ities 11.11111. 27. 28
Portfolio (anagement Ser!ice 111111111.... 29. 66
!onclu"ion #########################$ &(
Bibliogra)0y #######################$$$$$ &*
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+$ Introduction
+$+ Background:
+e %a!e !ery &een interest on financial intermediaries and t%eir acti!ities. *%ey are t%e
c%annel between deficit and surplus business unit. ndustriali:ation is t%e prere'uisite for
de!elopment and it always re'uires %uge capital in!estment. ;o single business unit is
able to meet t%e demand of all t%e organi:ation. /nly cumulati!e fund collected from all
t%e people w%o %as surplus can meet t%is %uge demand. And financial intermediaries are
performing t%is important duty of gat%ering t%is fund. /ur present concern D,- finance
is one of t%ese intermediaries. But its importance is more t%an ot%ers because it is
simultaneously playing t%e role of !arious finance companies and t%us contributing to t%e
de!elopment of t%e country as a supplier of loanable fund and more importantly# as a
mar&et ma&er. *%at0s w%y we %a!e decided to prepare t%is report on D,-.
+$/ 1rigin o t0e re)ort:
*%is term paper is a course re'uirement of F.63<: Financial nstitution and (ar&et". /ur
%onorable course instructor assigned us t%e topic and t%e report was conducted on D,-
finance ,td. +e are !ery glad to %a!e %is suggestion and guidelines in t%is regard. *%e
report mainly focused on t%e leasing company0s functions# source of fund# in!estment
and rules and regulation regarding leasing company. But as capital mar&et is one of t%e
%ig%est concerns of today0s financial institutions# we also focus on t%e capital mar&et
acti!ities of t%e firm.
+$& 1b2ective" o t0e re)ort:
*%e main objecti!es of t%e report are gi!en below:
*o understand t%e financial institutions o!erall acti!ities t%roug% t%e mar&ets.
=at%er some practical &nowledge on different financial companies0 acti!ities.
*%in&ing about t%e present course of action relate wit% t%e present condition.
Point out leasing acti!ities performed by D,-.
-apital mar&et acti!ities of D,-.
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+$( Data "ource:
*%e main sources of data are as follows:
*%e data on lease finance and merc%ant ban&ing and lessee compatibility were
collected from t%e organi:ational !isit to t%e D,-0s corporate office.
*%e company information and ot%er related information w%ic% are gi!en on t%e
repot were collected from t%e mont%ly business re!iew and t%e annual report of
t%e company.
+$* Time )eriod :
*%e time period co!ered in t%e study is for t%e period 2339 because of t%e una!ailability
of recent information.
+$, 3imitation :
*%e major limitations t%at t%e study faced were as follows:
=etting t%e internal data of t%e company for t%e recent period is difficult. Because
most of t%e organi:ations don0t want to s%are t%ose information wit% outsider.
*%e analysis re'uired complete information about all &inds of product. But t%e
necessary data on all products at t%e same period were not a!ailable.
Some of t%e necessary assumptions t%at were t%eoretically gi!en were not at all
consistent wit% t%e general practice.
As lac& of &nowledge and dept% of understanding mig%t %a!e %indered our ability
to produce an absolutely aut%entic and meaningful report.
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*%is &ind of study re'uires more time. So t%e constraint of time was a major
limitation.
/$ !om)any Background
D,- finance ltd. started its journey in 4>?7# as t%e first e!er leasing company of t%e
country. D,- was licensed as a financial institution by t%e country0s central ban&#
Banglades% Ban&# following t%e en%ancement of t%e financial institution Act 4>>6. /!er
t%e last two decades# D,- %as grown in tandem wit% t%e country0s transition into a
de!eloping country and %as emerged as Banglades%0s leading multiproduct financial
institution.
Become the best performing and most innovative
financial
solutions provider in the country.

Create maximum possible value for all our stakeholders by
adhering to the highest ethical standards
For their Customers
Relentless pursuit of customer satisfaction t%roug% deli!ery of top 'uality ser!ices.
For their Shareholders
(a@imi:e s%are%olders0 wealt% t%roug% a sustained return on t%eir in!estments.
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".# Introduction
For their $mployees
Pro!ide job satisfaction by ma&ing D,- a centre of e@cellence wit%
opportunity for career de!elopment.
For the Society
-ontribute to t%e well being of t%e society# in general# by acting as a responsible
corporate citi:en.
%ong term maximi&ation of stakeholders' value.
Corporate (hilosophy
Disc%arge our functions wit% proper accountability for all our actions and results and
bind us to t%e %ig%est et%ical standards.
-reate synergy by combing %ig% 'uality and strategically balanced portfolios.
Pro!ide a range of financial products and ser!ices to our customers under one
roof.
Strengt%ening our position in capital mar&et operation.
Balanced di!ersification of funding sources.
(a@imi:e corporate !alue t%roug% sustained %ig% 'uality growt%.
Strengt%ening corporate go!ernance practices.
3333
IDLC always places highest priority to the national interest.
Utmost importance is always attached to countrys growth and
prosperity.
IDLC employees are trained with the object of developing good
leaders rather than good managers.
IDLC places emphasis on creativity and innovation to achieve
organiational e!cellence.
IDLC believes in adherence to the highest ethical standards.
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n accordance wit% appro!ed and agreed -ode of -onduct# D,- employees
s%all:
Act wit% integrity# competence# dignity and in an et%ical manner w%en
dealing wit% customs# colleagues# agencies and public.
Act and encourage ot%ers to be%a!e in a professional and et%ical
manner t%at will reflect positi!ely on D,- employees# t%eir
profession and on D,-# at large.
Stri!e to maintain and impro!e t%e competence of all in t%e business.
Ase reasonable care and e@ercise independent professional judgment.
;ot restrain ot%ers from performing t%eir professional obligations.
(aintain &nowledge of and comply wit% all applicable laws# rules and
regulations.
Disclose all conflicts of interest.
Deli!er professional ser!ices in accordance wit% D,- policies and
rele!ant tec%nical and professional standards.
Respect t%e confidentiality and pri!acy of customers# people and
ot%ers wit% w%om t%ey do business.
;ot engage in any professional conduct in!ol!ing dis%onesty# fraud#
deceit or misrepresentation or commit any act t%at reflects ad!ersely
on t%eir %onesty# trustwort%iness or professional competence.
D,- employees %a!e an obligation to &now and understand not only t%e
guidance contained in -ode of -onduct# but also t%e spirit on w%ic% it is
based.
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".0 Code of Conduct and $thical (rinciples
".1 2IS+O,34 5$3 !I%$S+O$
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!ay ".6 #781 Incorporation of the company
"ebruary ##$ %&'( Commencement of leasing company
)ay %'$ %&'( *igning of first leasing company
+ctober ,%$ %&&, -stablishment of branch in Chittagong$ the main
port city
)arch #,$ %&&3 Listed in Dha.a *toc. -!change
*eptember %,$ %&&/ Licensed by 0angladesh 0an. for deposit ta.ing
"ebruary ,1$ %&&2 Licensed as a 3on 0an.ing "inancial Institution
under the "inancial Institution 4ct$ %&&3
5uly ,#$ %&&2 Licensed by 0angladesh 0an. as an off6shore
financier in the -!port 7rocessing 8ones
3ovember #2$ %&&( Listed in the Chittagong *toc. -!change
)ay #1$ %&&1 Commencement of 9ome "inance and *hort term
"inance operations
5anuary ##$ %&&' Licensed as a )erchant 0an.er by the *ecurities and
-!change Commission
5anuary %2$ %&&& Commencement of Corporate "inance and )erchant
0an.ing operations
5anuary #&$ #,,/ +pening of the first retail focused branch at
Dhanmondi
3ovember ##$ #,,/ Launching of Investment and )anagement *ervices
:Cap Invest;
"ebruary 1$ #,,2 Issuance of "irst *ecurities 8ero Coupon 0onds by
IDLC *ecurities <rust #,,2
"ebruary #1$ #,,2 *igning of )+U for strategic alliance between IDLC
and *0I Capital )ar.ets Limited$ India
*eptember %'$ #,,2 Launching of Local -nterprise Investment Centre$ a
centre established for the development of *)-s
with the contribution of the Canadian International
Development 4gency of the =overnment of Canada
)ay %'$ #,,( +pening )erchant 0an.ing branch in the port city
Chittagong
5uly %$ #,,( >elocation of Companys >egistered and Corporate
9ead +ffice at own premises at 21$ =ulshan 4venue
*eptember %'$ #,,( Commencement of operation of IDLC *ecurities
Limited$ a wholly owned subsidiary of IDLC
)arch %/$ #,,1 Launching of Discretionary 7ortfolio )anagement
*ervices :)anagement Cap Investment;
4ugust 2$ #,,1 Company name changed to IDLC "inance Limited
from Industrial Development Leasing Company of
0angladesh Limited
December 3$ #,,1 IDLC *ecurities Limited Chittagong 0ranch
commenced operation
December %'$ #,,1 IDLC *ecurities Limited D+9* Dha.a 0ranch opened
".9 F/:S ; IV$S+!$+S
D,-0s source of funds and in!estments include:
%ong +erm Sources of Funds<
Common e?uity investment
7referred e?uity investment
0onds
Short +erm Sources of Funds@
<erm deposit schemes
Debentures
*ecuritied bonds
Investment of Funds<
Lease finance
<erm finance
Domestic factors of accounts receivable
0illAinvoice discounting
Bor. order finance
Corporate real estate finance
>eal estate developer finance
9ome loans with home loan shield
9ome e?uity loans
Car loans for individuals
0usiness loan
)achinery loans
Double loan
"estival loan
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Corporate Services<
7roject finance appraisal
7roject loan syndication
Bor.ing capital arrangement
*yndication agency services
>efinancing arrangement
Corporate financing advisory
*ecuritiation of receivables
<rusteeship management
7rofessional supports to the *)-s
!erchant Banking and (ortfolio management services<
Investor discretionaryA3on6 discretionary portfolio management
services
I7+ advisory
Issue management
Underwriting
Investment advisory
7lacement of -?uity$ debenture and bonds
Custodial services
Internal (artnership= affiliations@
As manager of t%e local enterprise in!estment center# wit% contribution of t%e -anadian
international de!elopment agency of t%e go!t. of t%e -anada# D,- plays an acti!e role
in t%e de!elopment of t%e country0s pri!ate sector by pro!iding financial and professional
support to t%e small and medium enterprises# w%o wis% to e@pand and impro!e t%eir
products and ser!ices. *%is is t%e first direct partners%ip by -DA wit% a local pri!ate
sector entity in a de!eloping country.
Subsidiaries<
D,- securities limited# a fully owned subsidiary of D,-# offers full.fledged
international standard bro&erage ser!ice for retail and institutional clients# it %as seats on
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bot% t%e D%a&a and -%ittagong stoc& e@c%ange. t is also a depository participant of
depository of Banglades%.
D,- always concentrates on deli!ering %ig% !alue to its sta&e%olders t%roug%
appropriate trade off ris& and return. A well structured and producti!e ris& management
system is in place wit%in t%e company to address ris&s relating to credit# mar&et# li'uidity
and operations. Ris& grading is assigned at t%e inception of lending considering t%e
industry# business# financial and management ris& associated wit% t%e financing. *%e
company %as different committees for ris& management and appropriate internal control
measures are also place to mitigate ris&.
Credit ,isk<
-redit Ris& is t%e possibility t%at a borrower or counter party will fail to meet agreed
obligations. *%us managing credit ris& for efficient management of financial institution
%as become t%e most crucial tas&. =i!en t%e fast c%anging# dynamic global economy and
t%e increasing pressure of globali:ation# liberali:ation and consolidation it is essential t%at
Fs %a!e robust credit ris& management policies and procedures t%at are sensiti!e and
responsi!e to t%ese c%anges. At D,-# credit ris& may arise in t%e following forms:
. Default Ris&
. 5@posure ris&
. Reco!ery ris&
. -ounter party ris&
. Related party ris&
. ,egal ris&
. Political ris&
*o encounter and mitigate credit ris& t%e following control measures are in place at
D,-:
. (ultilayer appro!al process
. Policy for sector and group e@posure limit
. (andatory searc% for credit report from credit information bureau
. ,oo&ing into payment performance of customer before financing
. Annual re!iew of clients
. Ade'uate insurance co!ariance for funded assets
. Bigorous monitoring and follow up by special assets management team
. Strong follows up of compliance of credit policies by operational ris& management
department
. *a&ing collateral
. See&ing e@ternal legal opinion
!arket ,isk<
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".> ,IS5 !**)$!$+
(ar&et ris& refers to t%e fluctuation in a !ariety of mar&ets suc% as interest rates# prices of
securities w%ere t%e !alues of assets and liabilities can c%ange and t%ere e@ists t%e ris& of
incoming losses.
*%e asset liability committee of t%e company regularly meets to assess t%e c%anges in
interest rate# mar&et conditions# carry out asset liability maturity gap analysis# re.pricing
of products and t%ereby to monitor and control interest rate ris&. *o encounter mar&et ris&
D,- is negotiating for facilities t%at matc%es t%e maturity structure wit% ideal interest
rate# maintaining a balanced di!ersification in in!estments and prudent pro!isioning
policies. D,- %as also strong access to money mar&et and credit lines at a competiti!e
rate t%roug% good reputation# strong earnings# financial strengt% and credit rating.
%i?uidity ,isk<
,i'uidity ris& arises w%en a company is unable to meet t%e s%ort term obligation to its
lenders and sta&e%olders. *%is arises form t%e ad!erse mismatc% of maturities of assets
and liabilities.
,i'uidity re'uirements are managed are managed on a day.to.day basis by t%e treasury
di!ision w%ic% is responsible for ensuring t%at sufficient funds are a!ailable to meet s%ort
term obligation# e!en in t%e crisis scenario and for maintaining a di!ersity of funding
sources. *%e asset liability committee also o!ersees t%e asset liability maturity position
and recommend and implement appropriate measures to encounter li'uidity ris&.
Operational ,isk<
/perational ris& is t%e potential loss arising form a brea&down in company0s systems and
procedures# internal control# compliance re'uirements or corporate go!ernance practices#
w%ic% results in %uman error# fraud# failure# damage of reputations# delay to perform or
compromise of t%e company0s interests by employees. /perational ris& may arise from
t%e following:
. *urno!er of trained staff
. Ris& of insider dealings
. ,ea&age of sensiti!e information
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. S%ortcomings of organi:ational structure
. Ris& of falling in credit ratings
. (oney laundering
. -%anges in statutory re'uirements
. *ec%nological obsolescence
n particular# t%e following ris& management measures are present at D,- to address
operational ris&:
. 5ffecti!e internal audit function t%roug%out t%e organi:ation wit% direct access of c%ief
internal auditor to t%e audit committee and board
. Suitable delegated aut%ority le!el
. Awareness t%roug%out t%e organi:ation on &now your customer" policy
. (aintenance of assets t%roug% maintenance agreement wit% !endor
. Proper ris& transfer measure by ta&ing insurance co!erage for all assets of t%e company
. nfusing organi:ational !alues and et%ics in employees
. Strict compliance of employees0 code of conducts
. -reating conduci!e wor&ing en!ironment for t%e staff
. mplementation of computer basis (S system
Business Volume ,isks<
At D,-# business !olume ris& may arise in t%e form of ris& of falling business !olumes
and mar&et s%ares# ris& of being o!erta&en and losing leaders%ip position and ris& of o!er
trading w%ic% may affect profitability due to !olatile re!enues and reduced spread
earnings# credit ratings and reputation. *o encounter and mitigate t%is type of ris&# D,-
ta&es t%e following measures:
. nno!ati!e and con!enient financial products and ser!ices
. *a&ing prompt action on customer complaints
. Fre'uent assessment of client0s satisfaction
. Regular re!iew of performance against budget and target
. Re!iew and analysis of competitors0 performance
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".8 CO,(O,*+$ S+,/C+/,$
Credit ,ating<
D,- %as been
assigned AA2"
CDouble A *woD
rating in t%e long
term and S*.6
rating in t%e s%ort
term by -redit
Rating Agency of
Banglades%
,imited C-RABD.
*%is %as been done
is consideration of
D,-0s strong
owners%ip structure
and corporate
go!ernance
practices#
e@perienced
management team# impro!ing income mi@ and strong retail deposit base.
Financial nstitution rated in t%is category are considered strong# c%aracteri:ed by !ery
good financials# %ealt%y and sustainable franc%ise and a first rate operating en!ironment.
IC*B ational *@ard and S*F* !erit *@ard<
D,- Finance ,imited was awarded t%e second pri:e of t%e nstitute of -%artered
Accountants of Banglades% C-ABD ;ational Award and Sout% Asian Federation of
Accountants CSAFAD (erit Award for t%e Best Publis%ed Annual Accountants and
Reports for 2338 awarded by -AB and SAFA# respecti!ely.
*%ese awards reflect practicing good corporate go!ernance# compliance wit% t%e rules
and regulations# preparation and presentation of financial statements and disclosure of
information following nternational Accounting Standards and best practice set bye t%e
-AB and SAFA.
IC!*B Best Corporate *@ard for "AA9<
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".7 *B*,:S *: ,$CO)I+IO
D,- Finance ,imited recei!ed t%e first -(AB ;ational Best -orporate Award 2339
gi!en by t%e nstitute of -ost and (anagement Accountants of Banglades% C-(ABD.
D,- got t%e second pri:e in t%e financial institution category of t%e Best ;ational
-orporate Award 2339. t%e assessment criteria for t%e award include corporate
go!ernance practices# capital ade'uacy# li'uidity# asset 'uality and profitability.
An institution is only as good as community it grows up in. D,-0s policy is to
constantly %arness t%eir social capital and opportunities for t%is to grow. D,- belie!es
t%at -SR does not mean just doling out largesse. Rat%er it means t%e strategic use of
money and ot%er resources to empower communities and to %elp people %elp t%em. *%ey
%a!e made it a point to inculcate a deeper sense of responsibility and a stronger
awareness among t%eir staff on t%is issue. *%ey %a!e created a strong culture of corporate
social responsibility at all le!els and labored t%e point t%at D,- %as a significant role to
play as a leading corporate citi:en.
Branc% networ& and increased S(5 focused operation# enabled t%em not only to reac%
remote areas and many more li!es# but also pro!ide t%e small entrepreneurs wit% lease of
life w%ic% will also %elp in sustainable economic and social de!elopment.
+it% a !iew to contributing to po!erty reduction and sustainable de!elopment in
Banglades% by supporting t%e de!elopment of S(5s# t%at are close to being ready to
in!est andEor e@port t%at will benefit t%e poor t%roug% t%e creation of better jobs# and
ultimately sustainable li!eli%ood# D,- establis%ed ,ocal 5nterprise n!estment -enter
C,5-D in 2337. *%e ,5- is managed by D,- and funded by -anadian nternational
De!elopment Agency C-DAD.
During t%e year# ,5- made initial contacts wit% four %undred local S(5s across a range
of sectors and wor&ed closely wit% fifty one new S(5s# as prospecti!e clients# for t%e
-enter0s support. During 2339# ,5- undertoo& a process impro!ement initiati!e in some
local software companies. ,5- also too& a delegation of leading furniture companies of
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".#A CO,(O,*+$ SOCI*% ,$S(OSIBI%I+I$S
Banglades% to -anada to e@plore long term partners%ip opportunities wit% -anadian
furniture companies. A good number of seminars# wor&s%ops and focus group
discussions were also organi:ed on different topics jointly wit% trade bodies and Board of
n!estment. D,- is e@pecting t%at t%roug% ,5- contribution# S(5s will be de!eloped#
new long.term business.to.business partners%ips will be formed and good number of jobs
will be created# w%ic% will %elp in community de!elopment# as a w%ole.
&$ Bu"ine"" Activity
D,- belie!e t%at proper and balanced di!ersification of products and ser!ices among
different sectors is t%e only way to ac%ie!e t%eir !ision and ensure sustained and balanced
growt%. Feeping t%is in !iew# t%ey
%a!e# in 2339# concentrated t%eir
in!estment in di!ersified products
and ser!ices.
*%e company0s total in!estment
portfolio as on Decembers 64# 2339
stood at *& 42#4<< million# w%ic% is
4?G %ig%er t%an pre!ious year. /ut
of t%e total portfolio# lease# term
loan# real estate finance and margin
loan respecti!ely represent 6<G#
4?G# 27G# and 44.<G of t%e total
portfolio.
D,- also maintains a well
di!ersified in!estment portfolio in
t%e major sectors wit% %ig%est allocation to
ser!ices sector at 43.2>G# followed by food and
be!erages sector at >.97G# te@tiles at ?.7>G# financial ser!ices at ?.<6G# transport at
9.4?G# apparel and accessories at 8.??G# apparel and accessories at 8.??G# building and
construction at 7.<4G# pac&aging 7#27G# agro based industry 7.49G and so on. *%eir
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balanced di!ersification of in!estment portfolio %elps t%em mitigate economic and
sectoral ris&s.
O($,*+IO*% ($,FO,!*C$ OF I:%C :/,I) "AA>
*%e company %as completed its most successful year in 2339# despite an initial setbac&
due to political uncertainty and o!erall economic slowdown. *%ere was a mar&ed
increase in business confidence among customers during t%e year.
As a part of business e@pansion# during 2339# D,-0s fully owned subsidiary# D,-
Securities ,td# %as opened branc%es in -%ittagong and D/$S (o%a&%ali# in D%a&a# and
t%ey plan to open at least two more branc%es in 233?. t%e company0s di!ersified
operations and subsidiaries saw a %efty growt% during t%e year.
S(5s in Banglades% %a!e been ma&ing a significant contribution to t%e country0s
economy. $owe!er# t%ere is large gap between t%eir needs and access to reasonably
priced funds. Ander t%is bac&drop# we %a!e ta&en an initiati!e to increase in!estment in
t%is segment# in structured manner# and created a focused and separate S(5 Di!ision to
cater to t%e financing needs to small and medium si:ed business enterprises. D,-0s
S(5 focused branc% at Bogra %as strengt%ened its financing acti!ities in t%is growing
sector in t%e nort%ern region of t%e country.
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I:%C's consolidated operating result during "AA> is
summari&ed belo@< C+k in
!illionD

During t%e year under report# t%e
-ompany %as deposited *&. 262 million
to t%e =o!ernment 5@c%e'uer as
corporate income ta@# wit%%olding ta@
and BA*
($ !om)any Service"
D,- starts as a leasing company. As
leasing is its primary wor&# we discuss
about its leasing acti!ities. But now
merc%ant ban&ing is one of its prime
concerns. *%at0s w%y among all
acti!ities of D,-# we will discuss about its leasing and capital mar&et acti!ities
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#,,( #,,1 =rowth
C
Operating revenue %#3' %1(/ 0".1
Operating expenses %,%3 %32% ...0
Operating profit from merchant
banking operation
(.1 2%./ 99>."
+otal operating profit #3%.( /(/.& #AA.>
(rofit before income tax #3(.% /1/.2 #A#.A
et profit after income tax %21.3 3,3.3 7".8
$arnings per share >8.9. #1#.99 7".7
#,,( #,,1 =rowth
C
Operating revenue %#3' %1(/ 0".1
Operating expenses %,%3 %32% ...0
Operating profit from merchant
banking operation
(.1 2%./ 99>."
+otal operating profit #3%.( /(/.& #AA.>
(rofit before income tax #3(.% /1/.2 #A#.A
et profit after income tax %21.3 3,3.3 7".8
$arnings per share >8.9. #1#.99 7".7
Amid intense and increasing competition amongst t%e financial institutions as well as t%e
commercial ban&s# D,- maintained its leaders%ip position in t%e mar&et. During 2339#
t%e -ompany e@ecuted *& 2>99 million in leases and term loans# compared to pre!ious
year0s *&. 2?97 million. *%e lease and term loans portfolio at t%e end of t%e year saw a
marginal growt% of <.3?G o!er pre!ious year. *%is year t%ey %a!e concentrated more on
'uality portfolio rat%er t%an !olume ac%ie!ement. +it% t%e creation of a separate S(5
Di!ision# t%e financial institution e@pects to continue its dri!e to di!ersify its client base#
maintain portfolio 'uality and impro!e ser!ice 'uality# w%ic%# t%ey belie!e# will enable
t%em to maintain a sustainable growt% in t%is operation.
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0.# %ease and +erm %oan
%ease Financing<
Rat%er t%an %a!ing capital tied in one purc%ase# leasing allows utili:ing t%at capital
elsew%ere to general %ig%er profits# it also reduces cas% outflow. As appraisal and
documentation processes are simple# prompt and con!enient ser!ice would ensure 'uic&
implementation of t%e project. Since D,- owns t%e e'uipment t%e leased e'uipment
does not appear on lessee0s balance s%eet# its financial ratios also impro!e. Raising new
e'uity or debt for capital e@penditure %as many constraints w%ic% can be a!oided w%en
company opt for leasing. +%en organi:ation0s budget does not allow it to buy e'uipment#
leasing can ma&e t%e ac'uisition possible. Since rental payments are decided in ad!ance#
budgeting becomes easier. ,ease rentals are treated as re!enue e@penditure and are
entirely deductible for ta@ purposes. *%is pro!ides a greater ta@ benefit for you in
comparison to borrowing.
Because of all t%is facilities organi:ations are !ery muc% interested in lease financing.
*%is interest creates opportunities for D,-. *%at0s w%y it %as in!ested lots of money in
lease financing and till now it pro!es to be profitable enoug% to continue.
Term"4 condition" and rule" regarding lea"ing
%. 4nything that belongs to the category of e?uipment and machinery for any
industrial plants$ office automation$ medical treatment diagnosis$ transportation
etc comes under the purview of e?uipment leasing.
#. Lessee has the liberty to decide e?uipment$ supplier$ terms and conditions
including price. IDLC will buy the e?uipment of lessees choice.
3. Lease term means the non6cancelable period during which lessee can use the
leased e?uipment e!clusively. =enerally it ranges from 3 to 2 years.
/. <he actual purchase price and other incidental e!penses including financial
e!penses and all ban. charges shall constitute the ac?uisition cost and would be
capitalied at the time of e!ecution.
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Lease Finance
5001
4711 4174 4161 4571
501
543
563
622
699
0
1000
2000
3000
4000
5000
6000
1 2 3 4 5
T
k

i
n

M
i
l
l
i
o
n
400
450
500
550
600
650
700
750
Portfolio
Revenue
2336 233< 2337 2338 2339
2336 233< 2337 2338 2339
2. Lease rental is determined based on ac?uisition cost and lease term. )onthly
lease rental is most common$ however$ ?uarterly or half yearly payment can also
be considered.
(. Lease contract is based on the basis of negotiated terms and estimated
ac?uisition cost.
1. <he lease is e!ecuted on the basis of actual ac?uisition cost on delivery or
installation of the e?uipment. 4t the time of e!ecution the actual payment
schedule is fi!ed and lessee is re?uired to start paying the rental. Lessee is
re?uired to arrange the insurance coverage on the leased e?uipment for the entire
lease term.
'. Lessee is re?uired to maintain the leased e?uipment in good operating condition$
though insurance shall cover most of the abnormal ris.s.
&. 4t the e!piry of lease term$ lessee may
>enew the lease on a year to year basis at a predetermined lower rental
>eturn the e?uipment to IDLC.
7urchase the e?uipment from IDLC at negotiated price.
,eal $state Finance<
Alt%oug% t%e real estate and %ousing industry e@perienced a setbac& in 2339# wit% drastic
fall in sales# D,-0s %ousing finance operation witnessed a marginal growt% of <.3G in
disbursements. $owe!er# re!enue saw a %efty growt% of <2.9G. t%e %ousing finance
assets as at t%e close of t%e year stood at *& 6387 million# 27.7G %ig%er t%an t%e pre!ious
year. *%ey belie!e t%at t%is operation will continue to grow wit% increasing retail
customer base in years a%ead.
Car %oans<
During t%e year under report# t%e -ompany disbursed *& 499 million# a marginal 6.7G
%ig%er t%an t%e pre!ious year0s disbursement of *& 494 million. *%is operation %as#
%owe!er# earned re!enue of *& <<.6 million during t%e period# w%ic% is 9>.6G %ig%er
t%an pre!ious year. *%is operation is facing enormous competitions# wit% commercial
ban&s offering lower rates and s%owing aggressi!e operation# in t%is mar&et wit% strong
mar&eting team and branc% networ&. $owe!er t%ey %a!e mounted a strong campaign and
are optimistic t%at t%is operation will disburse e@pected !olumes and earn reasonable
re!enue in t%e future.
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0." Capital !arket *ctivities
I""ue Management
5ortolio
Management
6ig0t"7Debt 8on'Di"cretionary Di"cretionary A7!
!a) Inve"t
I51
Mgt$
Underwriting
Managed !a) Inve"t
Merc0ant Banking
Divi"ion
;ow we %a!e reac%ed t%e most desired part of t%e report. n order to strengt%en t%e
capital mar&et of Banglades% t%e newest initiati!e of t%e go!ernment and t%e regulatory
bodies %as been to promote merc%ant ban&ing because merc%ant ban&ing can en%ance t%e
capability of capital mar&et and strengt%en it. D,- Security ,imited# a subsidiary of
D,- finance ,imited# is one of t%e most important merc%ant ban& of Banglades%. +e
can understand t%e acti!ities of D,- Securities ,imited as a merc%ant ban& from t%e
grap% below.
D,- obtained (erc%ant Ban&ing license from Securities ) 5@c%ange
-ommission CS5-D in 4>>?# aiming to pro!ide capital mar&et related ser!ices to
our !alued customers.
*%e core strengt% of D,-0s (erc%ant Ban&ing Di!ision may be deri!ed from
immensely utili:ing t%e di!erse e@perience and deep &nowledge t%at D,- %as
gat%ered t%roug% its financing and ad!isory acti!ities during t%e last twenty C23D
years. n ot%er words# t%e accumulated e@periences and &nowledge %a!e found a
natural course to t%e di!ision for its proper utili:ation and !alue addition. *%is is
particularly true as t%e financing system is becoming more mar&et oriented and
t%e di!ision is well poised to play significant role in t%e new economic setting.
*%e di!ision is staffed wit% some of t%e most 'ualified and inno!ati!e personnel
in t%e country. (oreo!er# t%e professionals at D,- maintain t%e %ig%est degree
of financial and business et%ics in all transactions wit% t%eir customers.
*%e di!ision# at present# encompasses two major businesses H Portfolio
(anagement# and ssue (anagement and Anderwriting H w%ic% ser!e bot% t%e
demand and supply sides of t%e capital mar&et.
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ISSUE MA8A9EME8T : 1T;E6 A!TI<ITIES
D,- pro!ides compre%ensi!e non discretionary portfolio management ser!ices
including trades e@ecution and margin loan under its in!estment account called
I-ap n!est0. +e are capable of e@ecuting proper and efficient trades t%roug% our
strategically allied bro&erage firms.
*%e di!ision is also aiming to catapult discretionary portfolio management
ser!ices for %ig% net wort% indi!iduals and businesses.
For o!er twenty C23D years# we %a!e le!eraged all t%e resources of our firm to
build producti!e and enduring partners%ips wit% our corporate clients. Suc% a
steadfast relations%ip is t%e central forte of t%e ssue (anagement =roup of t%e
di!ision.
*%e ssue (anagement group is capable of de!ising inno!ati!e solution for
raising capital H debt and e'uity H from t%e mar&et suiting t%e uni'ue needs and
constraints of t%e corporate clients.
+it% a large e'uity base and sound financial %ealt%# D,- is capable of
underwriting big public e'uity offerings and debt issuances of deser!ing projects.
(ajor Ser!ices are:
Portfolio (anagement
ssue (anagement
Anderwriting
-ustodial Ser!ice
(anagement of /wn Portfolio
During 2339# D,-0s (erc%ant
Ban&ing /peration earned *&
267 million re!enue w%ic% is
robust 6<2G %ig%er t%an t%e
pre!ious year. *%e operation %as
earned an operation profit of *&
74.< million# compared to last
year0s t& 8.9 million. *%ey %ope
t%at t%is operation will earn
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2336 233< 2337 2338 2339
*a&a in million
!18T6IBUTI18 1= ID3! ME6!;A8T BA8> T1 5A6E8T
!1M5A8Y
increasing re!enue in t%e years a%ead and will ta&e a stronger position in t%e mar&et. At
t%e end of December 2339# total portfolio !alue at cost was *& 6623 million and balance
of margin loan was t& 46?9 million.
(oreo!er# (erc%ant ban&ing /peration earned BD* 46< million in capital gains during
2339 t%roug% trading of securities in t%e secondary mar&et.
DESI98ATED B61>E6S 1= ID3!
5'uity Partners Securities ,imited
,RF Securities ,imited
(ona Financial -onsultancy ) Securities ,imited
S-, Securities ,imited
S5S -ompany ,imited
,an&a Bangla Securities ,imited
;1? IT ?16>S
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516T=13I1 MA8A9EME8T SE6<I!E
Portfolio management ser!ice is a %ig% demand product in current capital mar&et. People
li&e to in!est wit% additional CmarginD loan e@pecting %ig%er return from t%e total
portfolio. At t%e same time portfolio mangers are getting a !ery %ig% interest rate on t%is
loan CD,- c%arge 4<.7GD. *%us t%is contributes a major portion of t%e total re!enue of
t%e company. n t%e last year C2338D D,- earned around 6<G of its total re!enue only
from merc%ant ban& operations. During t%is time period it managed issue and
underwritings of !ery few companies and t%e rest comes from portfolio management
operation.
/%%/ /%%& /%%( /%%* /%%, /%%-
Merc0ant Banking 3.4? 3.94 3.98 62 76 97
8et Income @8IA ' ater tax 424 446 46< 476 477 276
Merc0ant Bank" revenue a" B o
8I
3.47G 3.86G 3.79G 23.>2G 6<.4>G
2>.2<G
From t%e introduction of portfolio management ser!ice t%e re!enue multiplied from
merc%ant ban& wing. Beginning t%ree years its contribution was less t%an 4G. But for t%e
last two years t%e re!enue generation from t%is sector was e@cessi!ely %ig%. And major of
t%em are coming from portfolio management ser!ice. For t%is reason# t%e D,- e@pecting
more returns from t%is sector in upcoming years.
D,- %as a significant contribution to asset financing to capital mar&et in Banglades%. n
4>>?# t%e Security 5@c%ange commission CS5-D allowed it to carry out merc%ant
ban&ing. t started its operation as a merc%ant ban& t%roug% ssue management# ssue
underwriting# bridge financing and ot%er related ser!ices since 2332. D,- pro!ides
compre%ensi!e non discretionary portfolio management ser!ices including trades
e@ecution and margin loan under its in!estment account called I!a) Inve"t0 since early
of 2337. Antil ;o!ember 2339# its client0s number crossed 4#933 boundaries. Recently it
%as introduced its newest inno!ation of portfolio management H IManage !a)C a BDA
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type account ser!ice. *%is product is in its de!elopment stage wit% around 62 clients. So
discussion on D,- portfolio management limited %ere on -ap n!est.
!A5ITAT I8<EST
-ap n!est is a dynamic in!estment account t%at pro!ides t%e in!estors wit% entire range
of non discretionary portfolio management ser!ices# w%ic% include:
5fficient e@ecution of trades t%roug% a panel of reputed bro&ers.
5@tension of margin loan enabling t%e in!estors to earn en%anced return.
Registration of t%e securities# collecting di!idend# and bonus s%ares.
Subscription of t%e rig%ts issues.
-ompletion of demateriali:ation process.
Feeping t%e securities in safe custody.
I$ MAD16 =EATU6ES 1= E!A5 I8<ESTF
Any adult citi:en of Banglades%# corporation# and statutory body can open t%e
account wit% D,-. -ap n!est clients s%all %a!e absolute discretionary power to
ma&e in!estment decisions. D,-# t%e Portfolio (anager# s%all pro!ide all
support for efficient e@ecution of trades. All of t%e client0s securities will be
purc%ased and &ept under a common omnibus depository account. But in!estors
can not %a!e separate B/ account for transaction in ot%er securities or agencies.
-lients are allowed to in!est only in t%e securities carefully selected and appro!ed
by t%e Portfolio (anager. -lients contain t%e absolute power to ta&e t%eir own
in!estment decisions. $owe!er# t%eir in!estments s%all remain wit%in t%e list of
appro!ed securities# w%ic% D,-# t%e Portfolio (anager regularly update after
t%oroug% and independent analysis. *%e clients %a!e access to t%e !arious
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researc% materials on mar&et# industry and companies prepared by t%e
independent researc% team of t%e Portfolio (anager.
*o facilitate t%e clients to en%ance t%eir return on in!estments t%roug% le!eraging#
t%e Portfolio (anager e@tend margin loan to t%e clients. *%e margin loan is of
re!ol!ing nature# i.e.# all sorts of cas% mo!ements adjust t%e loan balance. *o
elaborate t%e point# w%ene!er additional amounts are deposited# securities sold#
and di!idend recei!ed# t%e loan balance reduces. /n t%e contrary# w%ene!er
securities are purc%ased or cas% wit%drawn# t%e loan balance increases.
n!estment in J-ap n!estJ is considered as allowable in!estment for obtaining
ta@ rebate. Additionally# capital gains from in!estments are currently completely
ta@.e@empt. $owe!er# all t%e securities purc%ased for t%e -lients are &ept in lien
in fa!or of t%e Portfolio (anager.
n order to protect clients0 e'uity position# portfolio manager calls additional
margin deposit in case %isE%er e'uity falls below a certain percentage Ct%e
percentage c%anges from time to timeD of t%e debt obligation to maintain t%e
stipulated debt to e'uity ratio. Suc% call is commonly &nown as I(argin -all0.
*rigger is a rig%t of t%e Portfolio (anager to e@ecute sale of appropriate portion
of client0s portfolio# in case in!estor fail to pro!ide additional deposit as re'uired
under margin call# wit%in t%ree C6D business days or if client0s e'uity falls furt%er
below a certain percentage Ct%e percentage c%anges from time to timeD of
in!estor0s total debt obligation. *rigger Sale is e@ecuted to reduce client0s debt
burden.
-lients can ma&e additional deposits at any time into t%eir account. Additional
deposits increase t%eir e'uity position and purc%asing power. Similarly t%ey are
allowed to wit%draw cas% to t%e e@tent at w%ic%# after suc% wit%drawal# t%eir
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e'uity remains at 433G of debt obligation. Also# t%e cas% wit%drawal s%all not
dri!e t%eir e'uity position below t%e minimum in!estment amount.
-lients can place t%eir order t%roug% p%ysically submitting t%e order slip to t%e
ser!ice des&s# or t%roug% telep%one# e.mail# or ot%er electronic de!ices. -lients
are able to place bot% mar&et order and limit order. (oreo!er clients can cancel or
modify t%eir orders subject to non.e@ecution of t%e said orders.
-lients can e@ecute trades in bot% DS5 and -S5# pro!ided t%at t%eir preferred
bro&er is a member of bot% DS5 and -S5. *%us in!estors can select t%eir own
preferred bro&er. *%ey can also c%ange t%eir preferred bro&er by applying to t%e
Portfolio (anager.
*%ere is no stipulated in!estment period for -ap n!est. n!estors are free to
decide t%eir own in!estment %ori:on and operate t%e account accordingly.
$owe!er clients recei!e t%eir portfolio status report 'uarterly. But if t%ey wis%#
t%ey can get t%e report any time on demand.
$ere in!estors0 e'uity is calculated by deducting t%e debt amount from total
portfolio !alue# and t%e purc%asing power is deri!ed at certain times of t%e e'uity.
*%e magnitude of t%e multiplier c%anges depending on t%e capital mar&et
circumstance.
n t%is in!estment clients are not allowed to attend t%e A=(E5=( of t%e
companies. $owe!er# t%e portfolio manager attends t%e A=(E5=( be%alf of t%e
clients and cast !ote in t%e best interest of t%e clients.
II$ 1T;E6 =EATU6ES 1= E!A5 I8<ESTF
Kour in!estment in !a) Inve"t is allowable for ta@ rebates
-apital gains from in!estments are currently ta@.e@empt
Kour Portfolio (anager will administer and !alue your in!estments and pro!ide
you wit% custodial ser!ices
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Kour in!estment in !a) Inve"t is allowable for ta@ rebates
-apital gains from in!estments are currently ta@.e@empt
Kour Portfolio (anager will administer and !alue your in!estments and pro!ide
you wit% custodial ser!ices
(inimum in!estment amount is *&. 433#333E. C*a&a /ne $undred *%ousand
/nlyD
Kou will %a!e t%e c%oice to in!est in securities carefully selected by your
Portfolio (anager
III$ !A5 I8<ESTME8T G A!!1U8T 15E8I89
Eligibility: Any adult citi:en of Banglades%# corporation# and statutory body
Minimum Inve"tment: *F 233#333E.
6eHuired Document:
L Passport or ;ationality -ertificate or *;
L 2 copies of p%otograp%s
L ;ominee nformation ) P%otograp%
I<$ !A5 I8<ESTME8T G !;A6A!TE6ISTI!S
-lient can a!ail loan of 73G of t%e e'uity C4:3.7D
(argin -all H -lient will be notified w%en e'uity drops below 73G of loan.
*rigger Sale H 5@ecuted once e'uity drops below 63G of loan.
;o separate B/ account is re'uired.
ndependent trade e@ecution.
-lient can trade t%roug% any designated bro&er.
-lient -an place additional deposit any time
-lient can wit%draw only after &eeping deposit abo!e 433G of t%e loan.
-an trade bot% in -S5 ) DS5# if t%e client0s bro&er is member of bot% t%e
bourses.
-lient can do netting# if e'uity is ?3G of t%e loan.
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Portfolio manager will ensure
L Safety of t%e securities.
L -ollection of cas%Ebonus di!idends
L Subscription of rig%t s%are.
A client cannot:
L +it%draw p%ysical securities from account#
L $a!e separate B/ account#
L Deposit or transfer securities from ot%er B/ account#
L Attend t%e A=(E5=( of t%e company and cast !ote.
<$ !A5 I8<EST ' =EES A8D !;A69ESI
Documentation Fee: *&. 733E. Cone.offD
(anagement fee: 4.7Gp.a on securities Balue# c%arged 'uarterly
nterest on margin: 4<.7Gp.a# c%arged 'uarterly
Bro&erage Fee: 3.67G on *ransaction Balue
/ut of Poc&et and *%ird Party -%arges C-entral Depository# S(S c%arges etc.D:
/n actual basis MCFees and c%arges are subject to c%angeD
MA8A9ED !A5
I$ MA8A9ED !A5 G A!!1U8T 15E8I89
Designed for %ig% net wort% indi!iduals and institutions.
(inimum n!estment
L ndi!idual: *& 433#333
L nstitutions: *&. 4 million
(inimum n!estment %ori:on: 4 Kear
(argin loan: ;il
Document" to be attac0ed
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Individual A))licant
o *wo copies of passport si:e p%otograp%
o P%otocopy of PassportE Boter DE Dri!ing ,icenseE ;ationality
-ertificate wit% attested p%otograp% and utility bill
o Aut%ori:ed person0s signature and p%otograp% Cif anyD
o P%otograp% of nominees attested by t%e account %older
!or)orate Account
o P%otograp%CsD of t%e director
o P%otocopy of PassportE Boter DE Dri!ing ,icenseE ;ationality -ertificate
wit% attested p%otograp% and utility bill of t%e signatories
o Board resolution
o (emorandum ) Article of Association certified by RNS-
o Signature and p%otograp% of t%e aut%ori:ed person Cif anyD
II$ MA8A9ED !A5 G !;A6A!TE6ISTI!S
-lients n!estment perspecti!e will be determined t%roug% n!estment Policy
Statement CPSD
Additional deposit is allowable.
Stoc&s are purc%ased collecti!ely and are allocated based on respecti!e orders at
a!erage price.
-lient of t%e (anaged cap in!est account %a!e to weat%er t%e ris& of portfolio
performance. $owe!er portfolio manager will implement diligent ris& control
measures.
III$ MA8A9ED !A5 I8<ESTME8T G =EES : !;A69ESI
Documentation Fee: *& 733E.
(anagement Fee: 2.73G p.a.# on a!erage mar&et !alue of securities# 'uarterly
c%arged.
Bro&erage Fee: 3.67G on transaction amount.
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*ermination Fee Cbelow 4 yearD:3.73G on total asset !alue at mar&et price plus
cas%. MCFees and c%arges are subject to c%angeD
I<$ ?;1 !A8 I8<EST I8 MA8A9ED !A5 I8<ESTME8TJ
Pro!ided fund of large corporations.
nsurance companies.
$ig% Salaried 5mployees in (;-s.
;on resident Banglades%is# in searc% of in!estment opportunities.
<$ MA8A9ED !A5 I8<ESTME8T ' ?;Y ID3!J
D,- Finance %as dedicated capital mar&et researc% wing to classify stoc&s for
in!estment based on:
o ndustry /utloo& of a Particular Stoc&
o -ompany Analysis and Future Prospect
o $istorical Performance of t%e -ompany.
o *ec%nical Analysis.
D,- pro!ides customi:ed in!estment solution based on Ris& ) Return objecti!e
of indi!idual in!estor.
-ontinued !igilant monitoring of t%e in!estment.
D,- places t%e interests of t%e clients before its own. t %as adopted %ig%
standards of professional conduct to safeguard t%e interests of its clients.
D,- places utmost importance to compliance of securities laws w%ile managing
portfolios of its clients.
So far our performance:
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D,- %as a team of %ig%ly dedicated and competent professionals to pro!ide you
wit% %ig% 'uality in!estment management ser!ices.
D,- %as gat%ered !ast e@perience in most e!ery sector of t%e economy during
t%e past two decades. D,- translates its in!aluable e@periences into !arious
researc% materials for t%e benefit of its clients.
,ea!ing t%e in!estment in t%e professional %and# in!estors can be free from t%e
stress# occurring from rigorous in!estment selection and monitoring process.
*$ !onclu"ion
Despite constantly increasing competition in t%e mar&et wit% opening of leasing di!isions
by commercial ban&s# t%ey will put in strenuous efforts to ac%ie!e t%e business !olumes
targeted by all t%e departments# as well as reali:e t%eir corporate objecti!es. nno!ati!e
and relentless mar&eting dri!e will continue to attain 'uality asset growt%# w%ile
marinating and impro!ing e@isting portfolio 'uality.
D,- %as succeeded immensely in it di!ersification efforts resulting in growt% in income
steams from an array of business segments. *%eir focus in 233?# and in t%e near future#
will be in furt%er growing t%eir S(5 business t%roug% e@pansion of branc% networ&
across t%e country and opening dedicated S(5 des& in all e@isting branc%es. *%ey will
also ta&e e@tra efforts to offer loans to women entrepreneurs.
*%e -orporate Di!ision %as been affected somew%at by t%e c%ange in depreciation policy
by t%e =o!ernment. *%e Di!ision is now concentrating in offering term loans to its
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8umber o !lient"
(ore t%an 63
Total Managed !a) 5ortolio SiKe
*&. 23 (illion
Average 6eturn
77G
customers. Plans are afoot to introduce operating lease as a new product to counter t%e
loss ob business in t%e financial lease segment# t%eir mainstay since inception of t%e
company.
*%e Personal Finance Di!ision will build on its successes# until date# w%ic% %a!e been in
mortgages# auto loans and deposit mobili:ation. -onsumer loans %a!e just been launc%ed
to offer D,- customers one.stop ser!ices under one roof. *%ey %a!e plans to open a
branc% ac% in /ld D%a&a and Syll%et in 233? to cater to t%e e!er increasing needs of t%eir
personal segment customers.
D,-0s (erc%ant Ban&ing Di!ision %as performed !ery well in 2339. *%ey will continue
t%eir efforts to increase t%e customer base# bot% in t%e indi!idual and institutional
segments. *%ey will endea!or to encourage t%eir customers to get t%emsel!es listed on
t%e bourses# t%ereby bringing in 'uality scrip into our burgeoning capital mar&et. As t%e
financial institutions are facing immense competition# t%e -ompany will try to
concentrate more on capital mar&et operation and fee generation acti!ity and di!ersify its
mode of in!estment.
+it% all t%ese e@pansion and di!ersification efforts# D,- aims to be a truly speciali:ed
financial institution focusing on S(5 financing and in!estment ban&ing operation# w%ile
marinating its business s%are in corporate financing.
,$ Bibliogra)0y
1. Financial Institution And Markets By Fabozzi, Modigliani, Jones,
Ferri
2. www.idlc.com
3. Annual e!ort 2""# $% I&'(.
). Mont*ly Business e+iew ,B- I&'(.
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